长虹美菱股份有限公司
CHANGHONG MEILING CO., LTD.
二〇二二年年度报告
Annual Report 2022
CHANGHONG MEILING CO.,LTD. Annual Report 2022
I. Important Notice, Table of Contents and Definitions
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
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
Shine Wing Certified Public Accountants (LLP) issued standard unqualified Auditors’ Report for the Company’s
Financial Report of 2022.
Major defects in internal control
□ Applicable √Not applicable
The Company had no major defects in internal control in the reporting period.
Risk warning of concerning the forward-looking statements with future planning involved in 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 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 “XI. Prospects for the future development of the company” of “Section III. Management Analysis and
Discussion”, investors are advised to read the relevant content.
Securities Times, China Securities Journal and Juchao Website (Juchao Website (www.cninfo.com.cn)) are the
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CHANGHONG MEILING CO.,LTD. Annual Report 2022
media for information disclosure for year of 2023 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 reporting
period
√ Applicable □ Not applicable
Whether to increase the share capital with public reserve
□Yes √No
The profit distribution plan for year of 2022, that deliberated and approved by 31st session of the 10th BOD
was: take total shares of 1,029,923,715 shares as base dated 31 December 2022, distributed 0.9 Yuan (tax included)
bonus in cash for every 10-share hold by all shareholders, no share bonus issued and no capitalizing of common
reserves carried out.
Directors, supervisors and senior executives of the Company respectively signed a Written Confirmation Opinions
for 2022 Annual Report.
Supervisory Committee of the Company formed Written Examination Opinions for 2022 Annual Report.
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CHANGHONG MEILING CO.,LTD. Annual Report 2022
Documents Available for Reference
I.Financial statement carrying the signatures and seals of the Chairman, principal of the accounting works and
person in charge of accounting organ;
II. Original audit report carrying the seal of the CPA and signature & seal of the accountants;
III. Original documents of the Company and manuscripts of public notices that disclosed in the website designated
by CSRC in the report period;
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CHANGHONG MEILING CO.,LTD. Annual Report 2022
Contents
I.Important Notice, Table of contents and Definitions 1
II. Company Profile & Financial Highlights. 6
III. Management Discussion & Analysis 11
IV. Corporate Governance 44
V. Environmental & Social Responsibility 71
VI. Important Events 78
VII. Change of share capital and shareholding of Principal Shareholders 141
VIII. Situation of the Preferred Shares 150
IX. Corporate Bond 151
X. Financial Report 152
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CHANGHONG MEILING CO.,LTD. Annual Report 2022
Definition
Terms to be defined Refers to Definition
Company, The Company, Changhong Meiling
Refers to CHANGHONG MEILING CO.,LTD.
or Meiling Electric
Sichuan Changhong or controlling shareholder Refers to Sichuan Changhong Electric Co., Ltd.
Refers to
Changhong Group Sichuan Changhong Electronics Holding Group Co., Ltd.
Refers to
Hong Kong Changhong CHANGHONG (HK) TRADING LIMITED
Refers to
Meiling Group Hefei Meiling Group Holdings Limited
Refers to
Industry Investment Group Hefei Industry Investment Holding (Group) Co., Ltd.
Refers to
Changhong Air-conditioner Sichuan Changhong Air-conditioner Co., Ltd.
Refers to
Zhongke Meiling Zhongke Meiling Cryogenic Technology Co., Ltd.
Refers to
Mianyang Meiling Mianyang Meiling Refrigeration Co., Ltd.
Refers to
Jiangxi Meiling Jiangxi Meiling Electric Appliance Co., Ltd.
Refers to
Ridian Technology Changhong Meiling Ridian Technology Co., Ltd.
Refers to
Wulian Technology Hefei Meiling Wulian Technology Co., Ltd
Refers to
Zhongshan Changhong Zhongshan Changhong Electric Co., Ltd.
Refers to
Meiling Life Appliances Hefei Changhong Meiling Life Appliances Co., Ltd.
Refers to
Changhong Huayi Changhong Huayi Compressor Co., Ltd.
Refers to
Zhiyijia Company Sichuan Zhiyijia Network Technology Co., Ltd.
Refers to
Shine Wing 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
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CHANGHONG MEILING CO.,LTD. Annual Report 2022
II. Company Profile & Financial Highlights.
I.Company Profile
Changhong Meiling,
Short form of the stock Stock code 000521, 200521
Hongmeiling B
Short form of the Stock after
N/A
changed (if applicable)
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
长虹美菱
Chinese)
Foreign name of the Company (if
CHANGHONG MEILING CO.,LTD.
applicable)
Abbr. of English name of the
CHML
Company (if applicable)
Legal representative Wu Dinggang
Registrations add. No. 2163, Lianhua Road, Economic and Technology Development Zone, Hefei
Code for registrations add 230601
The Company was registered in the Hefei Administration for Industry and Commerce on
November 25, 1992 with the address registered as Linquan Road, Hefei City (Meiling
Economic Development Zone); on March 13, 1997, registered address changed to No.48
Historical changes on the
Wuhu Road, Hefei instead of Linquan Road, Hefei City (Meiling Economic Development
registration address
Zone); on May 19, 2008, the address changed to No. 2163, Lianhua Road, Economic and
Technology Development Zone, Hefei from No.48 Wuhu Road, Hefei. Registered address
of the Company has not changed during the reporting period.
Offices add. No. 2163, Lianhua Road, Economic and Technology Development Zone, Hefei
Codes for office add. 230601
Website http://www.meiling.com
E-mail info@meiling.com
II. Person/Way to contact
Secretary of the Board Rep. of security affairs
Name Li Xia Pan Haiyun
No. 2163, Lianhua Road, Economic and Technology No. 2163, Lianhua Road, Economic and
Contact add.
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. Information disclosure and preparation place
Website of the Stock Exchange where the annual
Shenzhen Stock Exchange www.szse.cn
report of the Company disclosed
Media and Website where the annual report of the Securities Times, China Securities Journal and Juchao website:
Company disclosed http://www.cninfo.com.cn
Room of secretary of the Board, 2/F , administrative center, Office building
Preparation place for annual report
of the Company
IV. Registration changes of the Company
Organization code Uniform social credit code:9134000014918555XK
Changes of main business since listing (if applicable) No changes
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CHANGHONG MEILING CO.,LTD. Annual Report 2022
1. In October 1993, after initial listing, controlling shareholder of the Company-- Hefei Meiling Industrial Corp. (renamed
as Hefei Meiling Group Co., dated 23 May 1994), executing controlling rights of the Company and management right of
the state-owned assets on behalf of Hefei State-owned Assets Management Office, named at that time;
2. From November 1997 to May 2003, controlling shareholder of the Company was Hefei Meiling Group Holding Co.,
Ltd. (established base on former Meiling Group Co.,, “Meiling Group” for short), an enterprise solely owned by the State;
mainly operating the state-owned capital in authorized from State-owned Assets Management Commission of Hefei City,
ensuring the maintenance and appreciation of state-owned assets;
3. On 29 May 2003, Meiling Group entered into “Equity Transfer Agreement” with Shunde GreenKel Enterprise
Development Co., ltd. (“GreenKel”), the 82,852,683 state-owned shares held by the Company was transfer to GreenKel.
After transferring, GreenKel comes to the first largest shareholder of the Company.
4. According to the spirit of “Bulletin of Treatment Opinions on GreenKel Company purchasing State-owned Assets
Shares of Listed Company” (GZFCQ[2006] No.: 44) jointly issued from SASAC and Ministry of Finance in April 2006,
Meiling Group took back the Meiling Electric 82,852,683 shares from GreenKel by procedures, which has been
transferred. In September 2006, relevant equity transfer agreement signed between the Meiling Group and GreenKel is
invalid, which was confirmed by the “Award” ((2006) HZZ No.: 104) issued from arbitration commission of Hefei; the
state-owned legal person’s 82,852,683 shares, held by GreenKel, should return to Meiling Electric, and relevant equity
consideration will pay to GreenKel by Meiling Group . On 29 December 2006, the 82,852,683 shares of Meiling Electric
were transfer to Meiling Group by GreenKel, and Meiling Group becomes the controlling shareholder of Meiling Electric
again.
Previous 5. On 18 May 2006 and 11 January 2007, Meiling Group entered into “Equity Transfer Agreement of Meiling Electric”
changes and “Supplementary Agreement of Equity Transfer of Meiling Electric” respectively with Sichuan Changhong and
for Changhong Group, among the 123,396,375 shares held by Meiling Group, 82,852,683 shares were transferred
controlling respectively to Sichuan Changhong and Changhong Group according to the transfer way regulated in agreement; of this
shareholde transferring, 45,000,000 shares (10.88% of total share capital of the Company) were transferred to Sichuan Changhong,
rs (if the first largest shareholder of the Company while 37,852,683 shares (9.15% of total share capital of the Company) were
applicable) transferred to Changhong Group, the third largest shareholder of the Company.
6. On 29 October 2008, Changhong Group and Sichuan Changhong entered into “Equity Transfer Agreement of Hefei
Meiling Co., Ltd.”, the 32,078,846 restricted circulations A shares of Meiling Electric held by Changhong Group were
transferred by agreement to Sichuan Changhong. On 23 December 2008, the aforesaid equity transfer was approved by
“Reply on Matters of Equity held by State-owned Shareholders of Hefei Meiling Co., Ltd.” (GZCQ(2008) No.: 1413)
from SASAC; on 21 January 2009, the aforesaid transfer was registered for ownership transfer in Shenzhen Branch of
China Securities Depository and Clearing Corporation Limited.The first majority shareholder of the Company comes to
Sichuan Changhong.
7. From 12 November 2018 to 25 February 2019, Sichuan Changhong and its concerted action Hong Kong Changhong
totally buys 16,231,024 shares of the Company through the secondary market by bidding (including A-stock of
13,751,756 shares and B-stock of 2,479,268 shares), a 1.55% in total share capital of the Company. After stake enlarge,
Sichuan Changhong and its concerted action Hong Kong Changhong holds 281,832,434 shares of the Company in total, a
26.98% of the total share capital of the Company; of which, Sichuan Changhong directly holds 248,457,724 A-share of
the Company, a 23.79% in total share capital of the Company while Hong Kong Changhong holds circulation B-share of
the Company amounting as 33,374,710 shares, a 3.19% in total share capital of the Company.
8. Ended as 31 December 2022, Sichuan Changhong and its concerted action Hong Kong Changhong totally holds
281,832,434 shares of the Company, a 27.36% in total share capital of the Company; Sichuan Changhong directly holds
248,457,724 A-share of the Company, a 24.12% in total share capital of the Company while Hong Kong Changhong
holds circulation B-share of the Company amounting as 33,374,710 shares, a 3.24% in total share capital of the Company.
V. Other relevant information
(1) CPA engaged by the Company
Name of CPA Shine Wing Certified Public Accountants (LLP)
8/F, Block A, Fu Hua Mansion No.8 Chao Yang Men Bei da jie, Dong Cheng District, Beijing,
Offices add. for CPA
P.R.C
Signing Accountants Wang Xiaodong , Tu Xiaofeng
(2) Sponsor engaged by the Company for performing continuous supervision duties in reporting period
□ Applicable √ Not applicable
(3) Financial consultant engaged by the Company for performing continuous supervision duties in reporting
period
□ Applicable √ Not applicable
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CHANGHONG MEILING CO.,LTD. Annual Report 2022
VI. Main accounting data and financial indexes
Whether it has retroactive adjustment or re-statement on previous accounting data
□ Yes √ No
Changes in the current
2022 2021 year over the previous 2020
year (+,-)
Operating income (RMB) 20,215,220,192.20 18,032,957,501.44 12.10% 15,388,050,229.67
Net profit attributable to
shareholders of the listed 244,538,734.49 51,898,388.84 371.19% -85,565,716.91
company (RMB)
Net profit attributable to
shareholders of the listed
company after deducting non- 102,739,493.47 -140,217,633.26 173.27% -277,816,055.91
recurring gains and losses
(RMB)
Net cash flow arising from
operating activities (RMB)
1,465,155,748.06 160,923,258.10 810.47% 1,403,516,222.46
Basic earnings per share
(RMB/Share)
0.2366 0.0497 376.06% -0.0819
Diluted earnings per share
(RMB/Share)
0.2366 0.0497 376.06% -0.0819
Weighted average ROE 3.89 percentage points
4.96% 1.07% -1.73%
up
Changes at end of the
current year compared
Year-end of2022 Year-end of2021 Year-end of2020
with the end of previous
year (+,-)
Total assets (RMB) 16,200,361,212.80 15,190,469,756.33 6.65% 16,103,355,454.46
Net assets attributable to
shareholder of listed company 5,168,286,872.09 4,837,334,400.21 6.84% 4,854,173,682.43
(RMB)
The cause of the accounting policy change and accounting error correction
□ Applicable √ Not applicable
The lower one of net profit before and after deducting the non-recurring gains/losses in the last three fiscal years
is negative, and the audit report of last year shows that the ability to continue operating is uncertain
□Yes √ No
The lower one of net profit before and after deducting the non-recurring gains/losses is negative
□Yes √ No
VII. Accounting data difference under domestic and foreign accounting standards
(1) 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
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CHANGHONG MEILING CO.,LTD. Annual Report 2022
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.
(2) 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 244,538,734.49 51,898,388.84 5,168,286,872.09 4,837,334,400.21
Items and amount adjusted by foreign accounting rules
Foreign accounting
244,538,734.49 51,898,388.84 5,168,286,872.09 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.
(3) 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.
VIII. Quarterly main financial index
In RMB
First quarter Second quarter Third quarter Fourth quarter
Operating income 4,012,925,239.44 6,211,578,311.75 5,150,870,767.54 4,839,845,873.47
Net profit attributable
to the shareholders of 5,147,648.23 55,227,551.02 101,823,245.05 82,340,290.19
the listed company
Net profit after
deducting of non-
recurring gain/loss
attributable to the
-22,549,982.34 26,657,451.25 74,277,789.36 24,354,235.20
shareholders of listed
company
Net Cash flow
generated by business -1,064,503,447.07 1,639,556,664.42 1,264,173,169.49 -374,070,638.78
operation
Whether there are significant differences between the above-mentioned financial index or its total number and the
relevant financial index disclosed in the company’s quarterly report and semi-annual report
□Yes √ No
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CHANGHONG MEILING CO.,LTD. Annual Report 2022
IX. Items and amounts of non-recurring profit (gains)/losses
√ Applicable □ Not applicable
In RMB
Item 2022 2021 2020 Note
Gains/losses from the disposal of non- Found more in
current asset (including the write-off that 27,602,023.18 -133,214.72 -2,111,295.55 “Income from assets
accrued for impairment of assets) disposal”
Governmental subsidy calculated into
current gains and losses(while closely
related with the normal business of the
Company, the government subsidy that Found more in “Other
accord with the provision of national
86,846,880.06 103,024,250.74 99,043,859.77
income"
policies and are continuously enjoyed in line
with a certain standard quota or quantity are
excluded)
Gains/losses of fair value changes arising
from holding of the trading financial asset,
trading financial liability and investment Found more in
earnings obtained from disposing the trading “Income of fair value
financial asset, trading financial liability,
36,077,236.23 105,811,461.63 123,242,542.42
changes”, “Investment
and financial assets available for sale, except income”
for the effective hedging business related to
normal operation of the Company
Switch back of the impairment for
Found more in
receivables that has impairment test 2,834,795.58 3,245,314.13 5,061,635.85
“Account receivable"
independently
Other non-operating income and expenses Found more in “Non-
other than the above
761,578.29 4,867,985.38 2,434,283.11
operation income"
Less: impact on income tax 3,581,742.85 21,813,023.99 34,083,593.36
Impact on minority shareholders’
equity (post-tax)
8,741,529.47 2,886,751.07 1,337,093.24
Total 141,799,241.02 192,116,022.10 192,250,339.00
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
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CHANGHONG MEILING CO.,LTD. Annual Report 2022
III. Management Discussion & Analysis
I. Industry of the Company during the reporting period
1. Refrigerator industry
The refrigerator industry is a highly mature industry, and the market development has entered the slow
development stage. From the overall data, the scale of China's refrigerator industry has faced high growth pressure
in 2022, but compared with the entire home appliance industry, the refrigerator industry showed a relative resilience.
Although the price of raw materials fell after the rise, the pressure on the cost side of enterprises has eased in some
extent, the international environment was complex and severe, and the contraction of external demand was further
manifested, superimposed by exchange rate changes and high inflation economic environment, the industry demand
has been constantly changing, thus the refrigerator export business went to an obvious falling-back trend.
Meanwhile, under the weakening of the vitality of the domestic market, the gradual recovery of overseas production
capacity and the high base effect of the previous year, the overall production and sales of refrigerators in the industry
have declined significantly compared with the previous year, and the industry has been facing the challenge of
homogenization in terms of product structure and product technology, and there’san urgent need to innovate in
product form and technology on the supply side. According to industry online data, China's Refrigerator sales in
2022 was 75.58 million units, down 12.6% YOY, of which the domestic sales were 41.23 million units, down 3.3%
YOY and the exports were 34.35 million units, down 21.6% YOY.
2.Air-conditioning industry
The air conditioning products are the home appliance category most affected by macroeconomic and weather
factors. In recent years, due to the continuous downturn in the real estate market, the sales volume of the air
conditioning industry has declined for three consecutive years, and the situation where enterprises have risen and
risen with the outbreak of the industry no longer exists. According to the total data of All View Cloud, in 2022, the
omni-channel sales volume of China's air conditioning market was 57.14 million units, down 3.3% YOY, and the
sales was 196.9 billion yuan, an increase of 0.3% YOY. Although the occurrence of rare high temperature weather
in many places of the country has stimulated consumer demand, plus the industry continued to promote the product
structure improvement and given there’s a firm price increase policy, it’s still difficult to reverse the overall decline
in sales in the industry.
Under the influence of global inflation, regional politics, and trade frictions, the export market of the air
conditioning industry is under greater pressure. At the same time, the domestic market is also facing adverse factors
such as the continued downturn in the economy and the contraction of the real estate market. However, the overall
pressure bearing capacity of the industry exceeded expectations, and the domestic market declined slightly
throughout the year. After the initial end of the market shock, consumer demand will be somewhat restored, but the
number of air-conditioned households has reached a high level, and industry demand has entered a new cycle of
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CHANGHONG MEILING CO.,LTD. Annual Report 2022
stock replacement. In the coming years, the overall sales volume and average sales price will tend to be relatively
stable.
3.Washing machine industry
In 2022, under the influence of many factors brought about by high penetration rate on consumer confidence,
travel, and house decoration, the development of the washing machine market was less than expected, and the scale
growth encountered a freezing point. According to the industry online data, the total sales volume of China's washing
machine industry in 2022 was 68.83 million units, down 7.9% YOY, of which the domestic sales were 40.77 million
units, down 8.4% YOY, and the exports were 28.06 million units, down 7.1% YOY. Meanwhile, affected by the
decline in market scale, the industry competition was further intensified, the average price of products was
collectively declined, and the price of online drum washing machinefell into the negative growth. Under the change
of supply and demand, the structural upgrading has slowed down, and the competition in the washing machine
industry has entered the deep-water area.
II.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 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.
Over the past 40 years, the Company has always been adhering to the "independent innovation, created in
China", and always focus on refrigeration industry without stop, 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 established the first RoHS public testing center, the national enterprise technology center, national industrial
design center, and the 5G industrial Internet innovation application laboratory in Anhui Province. In recent years,
the Company has won many national honorary titles such as "Smart Refrigerator Intelligent Manufacturing Pilot
Demonstration Project", "National Green Factory", "National Industrial Design Center" and "National Appliance
Industry Quality Leading Enterprise". Meanwhile, a number of Meiling products have frequentlywon many
domestic awards, constantly demonstrating the ability and strength of Meiling Intelligent Manufacturing and
Meiling Intelligent Innovation Technology. At the 2022 China Refrigerator Industry Summit Forum, Meiling greatly
won the 2022 China Refrigerator Industry Odor Purification and Sterilization Pioneer Brand Award, and its product
Meiling Ten-minutes purification series BCD-550WP9BT won the "2022 China Refrigerator Industry Full Space
Sterilization Best-selling Product" award, and Meiling spectrum fresh refrigerator BCD-413WP9BY won the "2022
Outstanding Channel Performance Product" award; Changhong big 3P Living-room and Dining-room Shared Air
Conditioner KFR-72LW/Q6C+R1 won the "Mechanical Air Conditioner of the World's Farthest Air-supply Distance
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CHANGHONG MEILING CO.,LTD. Annual Report 2022
of Big 3P Living-room and Dining-room Shared"; the drying channel washing technology of Meiling washing
machine won the "Annual Technological Innovation Achievement"; Meiling kitchen appliances, small household
appliances and water dispenser products won the "National Household Appliances Industry Quality Leading Brand".
In addition, Zhongke Meiling, a subsidiary of Meiling Biomedical Business, was recognized by the Ministry of
Industry and Information Technology of the People's Republic of China as the third batch of specialized and special
new "little giant" enterprises and was successfully listed on the Beijing Stock Exchange in October 2022.
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 and air-
conditioning products, “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.
During the reporting period, main income of the Company coming from refrigerator (freezer), air conditioner,
washing machine, small home appliances, kitchen & toilet products and biomedical etc., total amounting to 200.38
billion yuan, a 99.12% of the operating income.
III. 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, The "Meiling" brand is listed as one of the most valuable brands in China, which owns the youthful
brand "Athena" and it gradually builds the brand influence of "M Fresh" products. In recent years, the Company
has continuously reshaped its brand image and enhanced its core competitiveness through differentiated innovation
measures such as technological innovation, product innovation and service innovation. Through continuous
crossover cooperation, it ranks the first group in the industry in the We-media platform concerned by young people,
and the process of brand rejuvenation has been accelerating. In 2022, the brand promotion activities planned by the
Company such as "Installed All Over China" and "Resume Refrigerator" won two awards: "2022 Innovative Scene
Marketing Gold Case" and "2022 Event Marketing Gold Case" respectively. In addition, the Company also relied
on diversified brand strategy, and through multi-pronged initiatives, it comprehensively integrated and accelerated
to achieve interaction and resonance with users, effectively enhanced the brand's popularity and reputation. With
the CCTV "News Network", "People's Daily" and other mainstream media have reported in abundance, it also
promoted the Company's brand image to be continuously enhanced.
The Company will continue to practice the brand proposition of "Meiling, let the beauty come", focus on"one
goal", closely follow the "three main lines", implement the "four management systems", unswervingly deepen the
marketing transformation to develop the work for business idea, seize the new channel marketing outlet by crossover
influence, take "Meiling fresh", "Meiling thin", "Meiling purification", "Meiling embedded" and "Super Capacity"
13
CHANGHONG MEILING CO.,LTD. Annual Report 2022
as the communication breakthrough, and take the co-creation of all employees as the cornerstone, it will carry out
all-round brand construction from the aspects of brand, product and culture, thus to strengthen consumers' sense of
identity and belonging to the brand, shape the differentiated competitiveness of the brand, and realize brand
revitalization.
(2) Product capacity
In terms of refrigerator products, the Company has independently developed core technologies such as "zero
impact" and "micro-freezing" fresh-keeping technology, water molecule-activated fresh-keeping technology,
comprehensive thin GLS integration technology, MCN+ clean taste preservation technology, etc., leading the
refrigerator industry to return to the arena of freshness preservation and fully enter the era of "thinning" and "long-
term purification". Meanwhile, the Company has successively released the "M Fresh" first-generation series fresh-
keeping refrigerators equipped with water molecule activation preservation technology, the "M Fresh" second-
generation fresh-keeping refrigerators equipped with "zero impact" and "micro-freezing" fresh-keeping technology,
the ultra-thin folio 529W series refrigerators, the "Ten-minutes purification" second-generation series refrigerators
with upgraded purification technology, the 600L cross large narrow door series refrigerator, the French two-door
400L large narrow door series refrigerator, and the M Fresh "Super capacity" BCD-681WQ3S refrigerator equipped
with large-capacity and ADF+ negative ion antibacterial magic stone series (O2O) glass door refrigerator, and the
industry's thinnest 500L and 600L volume level of the cross worry-free series refrigerator
501WPU9CX/601WPU9CT, etc., thus created the brand business cards of "Meiling Fresh", "Meiling Thin" and
"Meiling imbedded" and established the brand image.
In term of the washing machine products, through the three black-technology development of the barrel cone
expansion circle technology, oblique angle stabilization technology, cloud disk condensation technology, the
Company has shaped the washing machine with "thin” “big", "smart" industry card, and in the "very thin" drum
platform, the Company have continually released the super oxygen purification and 5G series products. The afore-
said washing machine products not only continues the core function of the ultra-thin, large cylinder diameter, more
intelligent, more healthy, but also its automatic delivery and voice technology have become more convenient, and
the first "drying tunnel wash" function provides the clean, healthy and purification effects, once more revealing the
washing machine products with core strengthin the core technology with ultra-high standard.
In terms of air conditioning products, the Company adheres to the product concept of "good sleep + good air
+ good comfort", focuses on product upgrading around quality, experience and health, strictly controls quality from
comfort and reliability indicators, creates a brand experience of "extremely quiet, extremely economical , and
extremely intelligent" of air conditioning, and carries out product series layout around the three core functions of
"fresh air ventilation, self-cleaning, and total dust-free". The Company continues to expand the breadth and depth
of air conditioning products, and drives the interconnection between various products under the guidance of the
Company's overall intelligent strategy. The Company has launched Changhong "Lookup" series Q6E hang-up and
Q6E cabinet unit, launched the Q7A hang-up of the all-dust-free fresh air conditioner centering on the "dust-free
fresh air", which is the industry's first all-dust-free fresh air conditioner, thus established the industry benchmark of
"the all dust-free fresh air is the best fresh air", and launched the Q7V hang-up of zoned temperature control air
14
CHANGHONG MEILING CO.,LTD. Annual Report 2022
conditioner centering on "free wind" to solve the pain points of different temperature needs of users in the same
scene. In addition, in order to meet the demand for intelligent air conditioning products in countries and regions
with underdeveloped networks, the Eva, Grace, Morandi and other series of products have been developed to meet
the needs of customers for multilingual offline intelligent voice control.
In terms of kitchen and bathroom and small household appliances, in addition to some traditional electrical
appliances, the Company focuses on creating tea ecological electrical appliances and services, intelligent cleaning
appliances and gas-type hot water appliances. In terms of small household appliances, according to the needs of
users, it carefully cultivated the industry field, strengthened the integration of product functions, made break-
through in the bottleneck of product refrigeration technology, and launched the industry's first smart refrigerator
tea-cabinet water dispenser machine, and developed the intelligent tea art machines for mass consumers. In terms
of kitchen and bathroom appliances, it improved the array of high-end gas products with full screen, lower drum
DC, double gas and dual regulation, intelligent monitoring, segmented combustion and other technologies to lead
the high-end and high-quality development of the industry; also, it had a layout in the new track in the cleaning
electrical appliance industry, and launched the first floor scrubber product to enter the market strongly.
In terms of the biomedical development, the Company adhered to the brand concept of "taking products as the
main carrier and delivering core values to users", focused on the field of life sciences, continued to promote product
iterative innovation and quality upgrading based on user scenario-based needs, and provided users with professional
full-scenario solutions, so as to shape a safe and stable brand image and continuously enhanced brand influence. It
launched a new generation of "Cloud-Intelligent-Safe Automation Sample Library", and originally developed the -
80°C independent storage unit, which has the advantages of high compatibility, multi-partition, phased and multi-
system guarantee, and integrated IoT technology to provide users with safer and more intelligent automated sample
storage solutions.
The Company has a relatively advanced and perfect R & D and quality assurance system, passed ISO9001,
ISO14001, ISO45001 and other management system certification, and its products have quality assurance with
reliableproduct performance. Meanwhile, the Company owns the "National Enterprise Technology Center",
"National Industrial Design Center", "National Intellectual Property Demonstration Enterprise", "National
Industrial Product Green Design Demonstration Enterprise", "National Technology Innovation Demonstration
Enterprise", "China Industry-University-Research Cooperation Innovation Demonstration Enterprise", "Anhui
Green Energy Saving Refrigerator Engineering Technology Research Center", "Anhui Energy Saving Green
Preservation Refrigerator Engineering Research Center", "Anhui Manufacturing Innovation Center" and other
authoritative certifications as a strong guarantee. In terms of technical research, it’s been committed to the
application of basic technology research and industrialization transfer, and has established a technical strategic plan
with "intelligence, frequency conversion, simulation, and preservation" as the core technology and the "refrigeration,
new materials, and foaming" as the key technology. In terms of product development, the Company is committed
to user-centric, adhering to the product strategy of "fresh, thin, large and imbedded", creating the brand mentality
of "Meiling fresh" in function, creating a "thin imbedded integration" design aesthetic in space, creating a storage
benchmark of "ultra-high volume ratio" in terms of volume. Relying on technological innovation and breakthroughs,
15
CHANGHONG MEILING CO.,LTD. Annual Report 2022
it has been promoting the product upgrading, and constantly developing healthy, green and intelligent products that
meet user needs, so as to empower consumers with a better life. At the strategic level, the Company continues to
adhere to the core idea of "intelligent strategy and productism", and promotes the Company's product transformation,
technological innovation and industry leadership by promoting the follow-up research and development, promotion
and technological upgrade of intelligent and frequency conversion products.
(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. At the same time, 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 terms of the overseas markets, it made the full play of the industrial advantages of internal and external
synergy, air-conditioning and washing product synergy and global collaboration. While continuously improving
overseas product research and development capabilities and product competitiveness, it committed to help
customers do well in market segmentation, plan the products that meet the target market. Based on the marketing
capabilities accumulated in China for many years, it has been driving the overseas market segments by tailored
marketing strategies, providing customers with value-added services such as marketing promotion support on the
basis of high-quality products, and improving core customer satisfaction. Meanwhile, we actively explored the
overseas markets, expanded new customers, and constantly optimized the customer structure; It accelerated the
overseas brand building, enhanced the overseas brand familiarity, deepened the overseas marketing channels and
promotion capacity building.
IV. Main Business Analysis
In 2022, in the face of the macroeconomic downturn, the continued sluggish consumption, the overall decline
of the industry, In addition, the impact of factors such as high temperature power limit on the market, all units of
16
CHANGHONG MEILING CO.,LTD. Annual Report 2022
the Company united and forged ahead, and finally achieved a contrarian growth in sales scale and a significant
improvement in operating quality. During the reporting period, the Company's operating income reached 202.15
billion yuan, a YOY increase of 12.10%, and achieved a net profit of 2.77 billion yuan, a YOY increase of
218.17%%, taking a solid step towards positive and stable operation.
(1) Refrigerator (cabinet) industry
In the domestic market, the Company adhered to the product strategy of "boutique + explosive + fine explosive
products", focused on "fresh, thin, large, embedded" product layout, and with offline "big narrow door" series,
online "worry-free embedded" and "Magic Stone" series products being successfully launched, it promoted the
positive operation of products. In terms of basic channels, the digital transformation area has been expanded, the
scale has been improved, and the front-installing market and the ODM business have been strategically expanded,
with a large increase in scale. Upon the steadily improving online C-end operation capabilities, the profit and loss
have been improved, and the B-end expansion capabilities have been enhanced, as well as the online scale has
increased by nearly 30% YOY.
For the overseas market, it adhered to the "production determined by container arrangement", adhered to the
integration of production, marketing and supply, increased the proportion of direct delivery, reduced the total
inventory, and improved the inventory turnover rate, so as to improve capital efficiency. In terms of market
expansion, it seized the opportunity to enhance the market opportunity, improve the product and customer structure,
consolidate the advantageous market, build a base for its own brand business, and it focused on exploring the Belt
and Road market.
During the reporting period, the Company's refrigerator (cabinet) business achieved revenue of about 73.13
billion yuan, a YOY decrease of 5.34%.
(2) Air-conditioning industry
In the domestic market, it mapped out to do the online explosive boutique product of cabinet and hang-up
products and expand the unique value products offline. By developing new customers and making single boutique
products, and implementing special action plans, it has achieved the initial results in terms of channel improvement.
In addition, the large-scale high temperature weather across the country has significantly driven the retail, and the
outbreak of O2O more-direct channels has exceeded expectations, obtained with a large YOY increase; Also, it has
strengthened the cooperation with core strategic customers, and the ODM business has increased significantly.
In terms of overseas markets, we have focused on key customers, developed new, high-quality, and frequency
conversion products and continuously improved customer service capabilities, ensuring delivery, promoting order
turnover, concentrating resources, and making rapid breakthroughs, and further enhancing the threshold of TOP10
major customers; Upon centering on Latin America, the Middle East and other base markets, it has seized new
opportunities for market development, and increased the proportion of revenue in core markets; it continuously
injected impetus into business development by increasing the development of new customers.
During the reporting period, the Company's air conditioning business achieved a revenue of about 97.82
17
CHANGHONG MEILING CO.,LTD. Annual Report 2022
billion yuan, a YOY increase of 42.44%.
(3) Washing machine industry
The Company's washing machine industry adheres to the competitive strategy of differentiation and high
quality, and continuously optimizes and adjusts the product structure. In the domestic market, it used the
differentiated competitive advantage of "super thin" to closely focus on user needs, continued to promote product
leading strategies, and completed the layout of high-end products such as 5GIIcomplete set of lookup series,
superoxide purification series, and high-box pulsator wave waterfall second generation fashion version. It
continuously promoted the technological innovation, carried out the layout of the industry's original "drying tunnel
washing" technology, completely solved the problem of easy blockage and unhealthy drying of the drying tunnel of
the wash-and-drymachine, which has been highly recognized by the industry and consumers.
In terms of foreign markets, we actively expand the washing machine business with industrial innovation
thinking. We developed a 27-inch ultra-large capacity wave washing machine exclusively for overseas, and realized
the global layout of the product platform to meet the needs of overseas products. By improving customer service,
we achieved the rapid development and delivery of new products to promote the rapid order turnover. Upon
vigorously promoting the ultra-thin drum series, the profitability of the product has been significantly improved.
During the reporting period, the Company's washing machine business achieved the revenue of about 7.54 billion
yuan, a YOY increase of 12.64%.
(4) Kitchen & bathroom, small appliances
Adhering to tea appliances, gas water heaters and clean electrical products as the core, focusing on core product
areas and steadily stabilizing the foundation, it has improved the scale of basic category products and gradually
established the industry influence. Based on the traditional marketing, the Company actively embraced the new
retail, vigorously explored the emerging channels, comprehensively sorted out the organizational structure of offline
channels from the inside, and promoted the flattening transformation of offline channels. It has carried out the online
comprehensive layout of traditional e-commerce Tmall, Jingdong, Pinduoduo and other e-commerce platforms,
meanwhile based on Douyin, Xiaohongshu, Kuaishou and Youtube four emerging e-commerce platforms, with the
goal of creating explosive products, it concentrated resources to focus on key products in categories to achieve brand
awareness improvement not only through extensive grass cultivation but also to shape the brand story to consolidate
the dominant position of Meiling brand in the industry. During the reporting period, the Company's kitchen and
bathroom and small household appliances business achieved the revenue of about 16.06 billion yuan, a YOY
increase of 20.72%.
(5)Biomedical
The Company's biomedical industry is deeply engaged in the field of biological sciences. Based on market
demand, it continuously strengthens the innovation and research and development of new technologies and new
products, optimizes the research and development process, stimulates the vitality of innovation and research and
development, and forms sustainable technological innovation capabilities; Based on market demand, it carried out
18
CHANGHONG MEILING CO.,LTD. Annual Report 2022
the in-depth market segmentation channel layout, and continuously improved market service level,promoted the
standardization of production processes, improved the level of value chain management and improved the capacity
efficiency and product quality; The Company absorbed outstanding talents, improved the construction of talent
training system, and stimulated the Company's vitality and creativity. Its biomedical industry is mainly carried out
by its subsidiary Zhongke Meiling, whose products cover the full temperature zone of -196°C to 8°C, and have been
widely used in medical systems, blood systems, disease control systems, health systems, university scientific
research institutions, biomedical enterprises, genetic engineering and life sciences and other fields. Zhongke Meiling
has been officially listed on the Beijing Stock Exchange on October 18, 2022 and publicly issued shares. During
the reporting period, the revenue of biomedical business was about 3.52 billion yuan, a YOY decrease of 20.12%.
(ii) Revenue and cost
1. Constitute of operation revenue
In RMB
2022 2021
Ratio in Ratio in Increase/decrease
Amount operation Amount operation y-o-y (+,-)
revenue revenue
Total operation
20,215,220,192.20 100% 18,032,957,501.44 100% 12.10%
revenue
On Industry
Manufacture of
household 20,037,625,297.52 99.12% 17,331,645,754.46 96.11% 15.61%
appliances
Other business 177,594,894.68 0.88% 701,311,746.98 3.89% -74.68%
On products
Refrigerator,
freezer
7,664,575,851.66 37.91% 8,165,836,380.29 45.28% -6.14%
Air-conditioning 9,781,896,262.72 48.39% 6,867,304,359.29 38.08% 42.44%
Washing machine 753,549,855.38 3.73% 668,996,516.82 3.71% 12.64%
Small appliance
and kitchen & 1,605,989,880.27 7.94% 1,330,315,557.62 7.38% 20.72%
toilet
Other products 231,613,447.49 1.15% 299,192,940.44 1.66% -22.59%
Other business 177,594,894.68 0.88% 701,311,746.98 3.89% -74.68%
Area
Domestic 15,038,808,862.28 74.39% 13,212,985,690.01 73.27% 13.82%
Foreign 5,176,411,329.92 25.61% 4,819,971,811.43 26.73% 7.40%
Sub-sale model
Direct sales 177,594,894.68 0.88% 701,311,746.98 3.89% -74.68%
Distribution 20,037,625,297.52 99.12% 17,331,645,754.46 96.11% 15.61%
2.Situation of Industry, Product and District Occupying the Company’s Business Income and Operating Profit
with Profit over 10%
19
CHANGHONG MEILING CO.,LTD. Annual Report 2022
√ Applicable □Not applicable
In RMB
Increase/decre Increase/de
Increase/decreas
Gross profit ase of crease of
Operating revenue Operating cost e of operating
ratio operating gross profit
cost y-o-y
revenue y-o-y ratio y-o-y
On Industry
Manufacture of
20,037,625,297.52 17,325,069,941.59 13.54% 15.61% 13.43% 1.66%
household appliances
On products
Refrigerator, freezer 7,664,575,851.66 6,346,869,532.77 17.19% -6.14% -8.62% 2.25%
Air-conditioning 9,781,896,262.72 8,770,265,668.68 10.34% 42.44% 37.81% 3.01%
Small appliance and
1,605,989,880.27 1,408,047,190.15 12.33% 20.72% 21.99% -0.90%
kitchen & toilet
Area
Domestic 14,871,610,639.87 12,793,366,256.67 13.97% 18.77% 18.69% 0.05%
Foreign 5,166,014,657.65 4,531,703,684.92 12.28% 7.40% 0.84% 5.71%
Sub-sale model
Direct selling 20,037,625,297.52 17,325,069,941.59 13.54% 15.61% 13.43% 1.66%
In the event that the statistical caliber of the company's main business data is adjusted during the reporting period,
the company's main business data in the latest year after adjustment based on the caliber at the end of the reporting
period
□ Applicable √Not applicable
3. Income from physical sales larger than income from labors
√ Yes □ No
Increase/decrease y-
Industries Item Unit 2022 2021
o-y (+,-)
10 thousand
Sales volume
pieces/set
2,775.34 2,291.75 21.10%
Manufacture of
10 thousand
household Production
pieces/set
2,789.28 2,255.60 23.66%
appliances 10 thousand
Inventory
pieces/set
109.08 95.14 14.65%
Reasons for y-o-y relevant data with over 30% changes
□ Applicable √ Not applicable
4. Performance of the material sales contract and major procurement contracts that signed by the Company
up to the reporting period
□ Applicable √Not applicable
5. Constitute of operation cost
Industry classification
In RMB
Industries Item 2022 2021 Increase/decr
20
CHANGHONG MEILING CO.,LTD. Annual Report 2022
Ratio in Ratio in ease y-o-y
Amount Amount
operation cost operation cost (+,-)
Manufacture of
Raw
household
material
15,777,586,805.86 91.07% 13,942,721,443.16 91.29% 13.16%
appliances
Note: Nil
6. Whether the changes in the scope of consolidation in Reporting Period
√ Yes □ No
More details can be seen in the report “VII. Changes in the scope of the merger” and “VIII. Interests in other
entities” of “Section X Financial Report”
7. Major changes or adjustment in business, product or service of the Company in Reporting Period
□ Applicable √ Not applicable
8. Major sales client and main suppliers
(1) Major sales client of the Company
Total top five clients in sales (RMB) 11,790,336,957.70
Proportion in total annual sales volume for top five clients 58.32%
Proportion of the related parties’ sales in total annual sales volume for top 35.61%
five clients
Information of top five clients of the Company
Proportion in total annual
No Name Sales (RMB)
sales
1 Client I 6,836,157,232.15 33.83%
2 Client II 3,857,275,864.05 19.08%
3 Client III 499,595,740.27 2.47%
4 Client IV 359,868,646.79 1.78%
5 Client V 237,439,474.44 1.17%
Total -- 11,790,336,957.70 58.32%
Other notes of main clients
□ Applicable √ Not applicable
(2) Main suppliers of the Company
Total purchase amount from top five suppliers (RMB) 3,715,431,056.70
Proportion in total annual purchase amount for top five suppliers 21.18%
Proportion of related party’s purchase in total annual purchase amount for
top five suppliers
10.92%
Information of top five suppliers of the Company
Proportion in total annual
No Name Sales (RMB)
purchase
1 Supplier I 1,309,767,526.31 7.47%
2 Supplier II 831,473,318.98 4.74%
3 Supplier III 616,571,560.92 3.51%
4 Supplier IV 489,272,611.14 2.79%
21
CHANGHONG MEILING CO.,LTD. Annual Report 2022
5 Supplier V 468,346,039.35 2.67%
Total -- 3,715,431,056.70 21.18%
Other notes of main suppliers
□ Applicable √Not applicable
(iii) Expenses
In RMB
Increase/dec
2022 2021 rease y-o-y Note of major changes
(+,-)
Sales
expense
1,428,874,991.47 1,364,640,404.75 4.71% No major changes.
Administrati
ve expense
358,586,472.37 333,588,775.37 7.49% No major changes.
Financial
expense
-55,214,680.04 -58,402,782.80 5.46% No major changes.
R&D Due to the increase in R&D investment during the
expense
560,383,547.49 465,891,096.09 20.28%
reporting period
(iv)Investment in R&D
√Applicable □Not applicable
Expected impact on the future
Projects Purpose Progress Goals to be achieved
development of the Company
in the industry sets off a super narrow
In the era of every inch of
With the strong support door phenomenon, and the phenomenal
land values inch of
of "full space products continue to emerge,
gold,the consumers' pain
integration technology", highlighting the innovation strength of
point of "large-volume
the large and narrow the enterprise to the industry. By seizing
refrigerator demand
door series refrigerator the main trend logic of “meeting the
limited by small space" is Completed
"Super narrow door" 600WUP9BT has a consumption trend to meet user needs",
becoming more and the
refrigerator research width of 833mm and a empowering product upgrading with
prominent.It’s designed to product is
and development depth of 659mm, technological innovation, activating the
solve this consumption available
making it the narrowest existing market and exploring the
pain point and realize the
and thinnest cross door incremental market, the "super narrow
user needs of refrigerators
refrigerator in the door" series of refrigerators will
"narrow, thin and
industry, achieving a continue to play an important role in
supercapacity" and "small
capacity of 600L. promoting the product structure and the
sizewith large capacity".
Company’s efficiency in the future.
As the penetration rate of household
Through the full space
integration and cabinet electricity
integration technology
integration gradually increases, from
and innovative bottom
the perspective of market development
heat dissipation forward
trends and user needs, embedded
in and forward out
Solve the user's demand refrigerators have become the main
Completed design, the single-side
"Worry-free" for thinner and larger direction of product iterative upgrading.
and the reservation is less than
refrigerator research built-in refrigerators Under the premise of being user
product is 1cm close to 0 distance,
and development under the trend of home centered, we continue to innovate the
available and the back is 0
integration size of the refrigerator box, and are
distance against the
committed to developing larger and
wall, a real define of the
thinner embedded refrigerators,
"zero flat embedding"
allowing consumers to truly achieve the
true embedding
perfect integration of household
standard
appliances and home appliances.
22
CHANGHONG MEILING CO.,LTD. Annual Report 2022
Solve the problem of
Research and plush blocking of the Completed The drying tunnel has By solving consumer pain points,
development of drum pipeline of drum washing and the no plush blocking Meiling washing machine product
drying tunnelwashing and drying products, and product is failure, and the user competitiveness and consumer
technology solve the pain points of available experience is improved satisfaction are enhanced
users
Completed Meet the agitating Enrich Meiling's overseas product
Meeting the differentiated
27 inch mechanical and the performance standards lineup through differentiated large
needs of the Latin
stirring type pulsator product is for the region being pulsators, thus improving product gross
American market
available sold profit
As a component of
complete sets of
household appliances,
Research and Refrigerators
complete the research and
development of and washing Freeze the technical Intelligent technology improves and
development of intelligent
complete set of machines status and launch the supports the intelligent transformation
voice refrigerators and
intelligent voice have been product of home appliances
washing machines, and
products launched
support the layout of
complete sets of
household appliances
At present, the
design
verification of
the system Improve the efficiency of company
Refrigerator IOT big Realize IoT data
Improve the efficiency of architecture quality analysis and monitoring,
data analysis and analysis, monitoring
product quality and the improve product quality, accelerate the
mining system for and early warning of
monitoring and analysis construction corresponding speed, and reduce user
quality control IoT product quality
of the data complaints.
platform have
been
completed
Research and develop the
industry's first inverter
The project technology
hanging air conditioning
realizes the power
and fresh airconditioning
reduction of switching
dual external DC drive
Research and power supply, increases
technology, overcome the The promotion and application of the
application of dual new functions such as
industry's common built- Mass scheme can greatly enhance the
DC drive technology power detection and
in drive scheme of fresh produced comprehensive competitiveness of
of inverter air filter dirty blocking
air conditioning power products of various specifications.
conditioner detection at zero cost,
chip overheating and PS-9
and achieves industry-
problems, and build a new
leading competitiveness
electronic control
of the solution.
platform for hanging
upproducts.
Through the structure of
the upper and lower air
Based on the insight into
outlets and the multi-
user needs, we break
modal three-
through the technical
The development of dimensional air supply
problems of ultra-long Completed
living room and technology, the pain optimized the product line structure,
golden ratio air outlet and and the
dining room shared C points of the traditional and enhanced the quality, taste and
ultra-long distance air product is
cabinet machine cabinet machine "wide brand reputation of the product.
supply, and develop a new available
series products air supply range, the
shape of household air
living room blows
conditioner of living room
directly", "the air supply
and dining room shared.
distance is short, the
dining room cannot
23
CHANGHONG MEILING CO.,LTD. Annual Report 2022
blow" are solved,
improved the
differentiated
competitiveness of
products, and realized
the hot sales of a series
of products driven by
single products.
Completed
Solve the pain points of The industry's first Enhance brand image, lead the
Fridge tea-cabinet and the
ice water use and provide refrigerator tea-cabinet development of tea machine industry,
water dispenser product is
refrigerated storage space water dispenser product and improve profit margin
available
The body material of the
Completed Combine and
Solid wood tea- tea-cabinet water
and the experiment with home High-end products, improving gross
cabinet water dispenser is changed to
product is appliances and home margin
dispenser solid wood and combined
available furniture
with furniture
Users do not need to
Develop a zerocondensing
discharge cold water,
water combustion and Completed
JSLQ27-16TN3 zero turn on the hot water
heating product, achieve and the Enrich the Company's combustion
cold water condensing faucet can use hot water
level 1 energy efficiency, product is product line and enhance brand value
gas water heater at any time, while
and realize instant heating available
saving energy and gas,
at the time of use.
reducing gas costs
New refrigerant R290 Completed
New product Improve the Company's product line,
mobile air conditioner and the Improve the product
development, entering the seize the developed country market, and
series product product is line
European market enhance the Company's brand image
development available
Completed All products of split-
UVC series air Enrich product functions and increase
Increase product selling and the type air conditioners
conditioning product the selling points of the Company's
points product is can add UVC function
development products
available as an option
Solve the problems of
freeze-thaw during
sample storage, uneven
The project mainly serves
temperature fluctuations
the centralized storage
in the library during
and management of large The success of this project can realize
operation, accurate
batches of biological the mass production and
scanning of samples in
Research and samples, which can industrialization of ultra-low
batches, and long-term
industrialization maximize the efficiency temperature intelligent biobanks, help
Validation stable operation of
project of ultra-low of sample preparation improve the popularity of the
phase various automation
temperature quality, reduce cross- Company's products, and bring new
equipment in low
intelligent biobank contamination, improve growth to the Company's business to
temperature
sample preparation and expand into new fields, new industries
environments, and
processing speed, and and new markets.
realize the mass
trace the source to reduce
production and
the risk of errors
industrialization of
ultra-low temperature
intelligent biobanks
The project combines According to the To meet the urgent needs of market
Development and Internet of Things existing functions of the users for standardized, specialized,
Application of technology to collect, software and different practical, and stable biological sample
Validation
Biological Sample organize, and share customer needs, the information management systems,
phase
Database Information information and data from software is divided into upgrade our existing sample
Management System the entire life cycle of versions to meet the management software, and develop a
biological sample needs of different users good information interaction and
24
CHANGHONG MEILING CO.,LTD. Annual Report 2022
collection, processing, information assurance platform to meet
storage, and use, and user needs, which will play an
implement multi-angle important role in promoting the
management for data company's future development in the
security throughout the field.
process, achieving remote
resource sharing and
information security
supervision of biological
samples.
Aiming to the strong
demand for laboratory
sample pretreatment Meet the market's procurement demand
centrifugation, the project for various centrifuge products,
Laboratory biosafety
accelerates the layout of accumulate rich technology and
technology - research
the centrifuge market, and Validation Realize mass production experience for the future
and development of
designs and develops a phase production and sales research and development of such
benchtop refrigerated
series of refrigeration products, enter the centrifuge market,
centrifuges
laboratory centrifuge and enhance the Company's
products to meet the comprehensive competitiveness.
needs of users'
experiments and work.
R&D personnel
2022 2021 Change proportion
Number of R&D personnel
(person)
1,533 1,312 16.84%
2.03 percentage points
Proportion of R&D personnel 15.07% 13.04%
up
Educational background
Undergraduate 1,029 844 21.92%
Masters 106 99 7.07%
Age composition
Under 30 389 337 15.43%
30~40 584 473 23.47%
Investment of R&D
2022 2021 Change proportion
Investment for R&D (RMB) 655,917,101.66 623,553,400.81 5.19%
R&D investment/Operating 0.22 percentage points
revenue
3.24% 3.46%
down
Capitalization of R&D investment (RMB) 135,753,117.26 185,278,347.99 -26.73%
Capitalization of R&D investment/R&D
investment
20.70% 29.71% 9.01 percentage points down
Reasons and effects of significant changes in composition of the R&D personnel
□Applicable√ Not applicable
Reasons for significant changes in the proportion of total R&D investment in operating revenue from the previous
year
□Applicable√ Not applicable
Reasons and rationality of the major changes of the capitalization rate of R&D investment
□Applicable√ Not applicable
(v) Cash flow
In RMB
Increase/decrease y-
Items 2022 2021
o-y (+,-)
25
CHANGHONG MEILING CO.,LTD. Annual Report 2022
Subtotal of cash in-flow from operation
activity
21,950,834,479.70 19,122,732,939.87 14.79%
Subtotal of cash out-flow from
operation activity
20,485,678,731.64 18,961,809,681.77 8.04%
Net cash flow from operation activity 1,465,155,748.06 160,923,258.10 810.47%
Subtotal of cash in-flow from
investment activity
1,205,533,608.35 2,089,320,180.25 -42.30%
Subtotal of cash out-flow from
investment activity
1,711,918,251.95 2,071,396,229.61 -17.35%
Net cash flow from investment activity -506,384,643.60 17,923,950.64 -2925.18%
Subtotal of cash in-flow from financing
activity
1,647,463,355.44 1,700,242,527.68 -3.10%
Subtotal of cash out-flow from
financing activity
2,402,373,865.79 2,450,727,546.66 -1.97%
Net cash flow from financing activity -754,910,510.35 -750,485,018.98 -0.59%
Net increased amount of cash and cash
equivalent
273,027,138.19 -585,334,883.53 146.64%
Main reasons for y-o-y major changes in aspect of relevant data
√Applicable □ Not applicable
Major changes in net cash flow from operation activity mainly because the cash paid for good procurement and
received services during the period increased from a year earlier.
Major changes in net cash flow from investment activity mainly because the cash received from the recovery of
investment decreased from a year earlier.
Major changes in net cash flow from financing activity mainly because the cash paid for debt services increased
from a year earlier.
Explanation on reasons for the significant differences between the net cash flow arising from operation activities
in the Period and net profit of last year
√Applicable □ Not applicable
Mainly because at end of the period, inventory and operating payable decreased from the beginning of the year.
V. Analysis of the non-main business
√Applicable □ Not applicable
In RMB
Whether be
Ratio in
Amount Note sustainable
total profit
(Y/N)
It is mainly due to the investment income of joint
Investment income venture investment, creditor's rights investment
33,018,838.80 11.52% No
and other non-current financial assets during the
holding period.
It is mainly due to the appraisal income of the
Gains/losses from fair
company's forward foreign exchange contracts
value changes
24,137,501.27 8.42% No
and other non-current financial assets in this
period.
26
CHANGHONG MEILING CO.,LTD. Annual Report 2022
It is mainly due to the depreciation of inventory
Asset impairment -56,496,124.06 -19.71% and impairment loss of intangible assets accrued No
by the company in this period.
Non-operation income It is mainly due to the fine income received by
9,249,343.27 3.23% No
this in this period.
Non-operation It is mainly due to the scrapping loss of non-
expenditure
8,487,764.98 2.96% current assets and public welfare donations of the No
company in this period.
It is mainly due to the impairment loss of
Credit impairment
-164,446,765.99 -57.37% accounts receivable accrued by the company in No
losses
this period.
VI. Analysis of assets and liability
(i) Major changes of assets composition
In RMB
Year-end of 2022 Year-begin of 2022
Ratio
Ratio in Ratio in
changes(+ Note of major changes
Amount total Amount total
,-)
assets assets
It is mainly due to the increase in
Monetary
net cash flow generated by the
fund
6,839,421,779.13 42.22% 5,938,823,396.21 39.10% 3.12%
company's operating activities in
this period.
It is mainly due to the increase in
Account
the amount of bad debt provision
receivable
1,306,871,945.85 8.07% 1,440,874,691.28 9.49% -1.42%
for accounts receivable in this
period.
It is mainly due to the company's
Contract
4,301,610.03 0.02% 0.02% new project quality guarantee
assets
fund in this period.
It is mainly due to the increase in
Inventory 1,710,306,933.71 10.56% 1,356,357,419.80 8.93% 1.63% production of the company in this
period.
Investment
real estate
52,898,060.89 0.33% 53,149,934.45 0.35% -0.02% No major changes.
Long-term It is mainly due to the increase in
equity the investment income of the
100,384,428.50 0.62% 86,631,660.53 0.57% 0.05%
company to the associated
investment
enterprises in this period.
It is mainly due to the company's
Fix assets receipt of compensation for
2,229,553,866.96 13.76% 2,303,122,699.92 15.16% -1.40%
purchasing and storing land use
rights in this period
Construction It is mainly due to the increase in
in progress
66,522,492.77 0.41% 98,469,862.45 0.65% -0.24% fixed assets transferred by the
company in this period.
Right-of-use
assets
36,646,135.10 0.23% 45,367,918.31 0.30% -0.07% No major changes.
It is mainly due to the increase in
Short-term
loans
674,143,916.67 4.16% 622,874,652.77 4.10% 0.06% short-term loans borrowed by the
company in this period.
It is mainly due to the decrease in
Contract
liability
358,755,397.77 2.21% 515,004,115.23 3.39% -1.18% the company's advance payment
in this period.
27
CHANGHONG MEILING CO.,LTD. Annual Report 2022
It is mainly due to the
Long-term reclassification of the company's
loans
148,000,000.00 0.91% 168,000,000.00 1.11% -0.20%
long-term loans to non-current
liabilities due within one year.
It is mainly due to the rental fee
Lease liability 28,164,287.97 0.17% 33,225,912.15 0.22% -0.05% paid by the company in this
period.
Foreign assets account for a relatively high proportion
□Applicable √Not applicable
(ii) Assets and liability measured by fair value
√Applicable □ Not applicable
In RMB
Accumulati Devaluati
Changes of
ve changes on of
Amount at the fair value Amount of Amount at end of
Items of fair value withdraw purchase in the Sales in the Other changes
beginning period gains/losses in period the period
reckoned ing in the period
this period
into equity period
Financial assets
1.Trading financial assets
(derivative financial assets 17,997,086.19 39,663,502.48 57,660,588.67
excluded)
2. Receivable financing 1,808,109,301.56 -361,750,581.68 1,446,358,719.88
3. Other non-current
581,980,440.70 14,131,251.16 40,000,000.00 7,562,243.55 628,549,448.31
financial assets
Subtotal of financial
2,408,086,828.45 53,794,753.64 40,000,000.00 7,562,243.55 -361,750,581.68 2,132,568,756.86
assets
Above total 2,408,086,828.45 53,794,753.64 40,000,000.00 7,562,243.55 -361,750,581.68 2,132,568,756.86
Financial liabilities 12,304,272.41 29,657,252.37 41,961,524.78
Other changes:
Other changes in receivables financing are due to the settlement of bills receivable in this period.
Whether there have major changes on measurement attributes for main assets of the Company in report period or
not
□Yes √ No
(iii) 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 “65. Assets with restricted
ownership or use rights” in “VI. Note of consolidate financial statement” carried under Section X. Financial Report
VII. Investment analysis
(i) Overall situation
√Applicable □ Not applicable
Investment in the same period of last year
Investment in the reporting (RMB) Changes
( RMB)
200,000,000.00 50,000,000.00 300.00%
28
CHANGHONG MEILING CO.,LTD. Annual Report 2022
(ii) The major equity investment obtained in the reporting period
√Applicable □ Not applicable
29
CHANGHONG MEILING CO.,LTD. Annual Report 2022
In RMB
Te Whe
rm ther
Met Date of
of invo Index of
hod Typ disclosu
Principa Shareho in Status as of Expec Current lved disclosure
Name of of Amount of Capital e of re (if
l lding Partners ve the balance ted investment in a (if
invested inve investment sources prod applicab
business ratio st sheet date return profit and loss laws applicable
stme ucts le
m uit( )
nt )
en Y/N
t )
During the
Engage Sichuan Shenwan Hongyuan
reporting
ment in Changhong Equity Investment
period, the
equity Management Co., Ltd., Shenwan
initial
investm The Hongyuan Group Co., Ltd., Sichuan
Changhong investment
ent, Company Changhong Electronic (Group) Co.,
Group was RMB
investm and its Ltd., Sichuan Changhong Electric
Sichuan 40 million Juchao
ent subsidiary Co.,Ltd., Guangdong Changhong
Shenwan (including Website:h
manage New Changhon Electronics Co., Ltd., Sichuan Qiruike ttp://Jucha
Hongyuan 10 Not RMB 20
ment, ly g Air Technology Co., Ltd., Sichuan Not o Website
Strategic ye appl million from 2022-
asset esta 200,000,000.00 13.34% Conditioni Changhong Power Supply Co., Ltd., applic 44,345.58 No (www.cni
New ar icabl the 07-13 nfo.com.c
manage blish ng each Sichuan Changhong New Energy able
Industry s e Company n)(Notice
ment ed invested Technology Co., Ltd., Changhong
Parent Fund and RMB No.:
and RMB 100 Sanjie New Energy Co., Ltd., Sichuan
Partnership 20 million 2023-053)
other million Changhong Green Environmental
(Limited from
activitie with their Science and Technology Co., Ltd.,
Partnership) Changhong
s with own funds Yibin Red-star Electronics Co., Ltd.,
Air
private Sichuan Changhong Digital
Conditionin
equity Technology Co., Ltd., and Changhong
g
funds Huayi Compressor Co.,Ltd.
Company).
-
Total -- -- 200,000,000.00 -- -- -- -- -- 44,345.58 -- -- --
-
(iii)The material non-equity investment in the reporting period
□ Applicable √Not applicable
30
CHANGHONG MEILING CO.,LTD. Annual Report 2022
(iv)Financial assets investment
1. Securities investment
□ Applicable √ Not applicable
The Company had no securities investment in the reporting period.
2.Derivative investment
√ Applicable □ Not applicable
(1) Derivatives investment for hedging purposes during the reporting period
√ Applicable □ Not applicable
In RMB 10,000
Ratio of
Profit and loss of Changes in the investment amount
Amount purchased in Amount sales in the
fair value change cumulative fair Investment amount at at period-end in
Type Initial investment
in the current value included in the reporting period reporting period period-end net assets of the
period the equity Company at
period-end
Forward foreign exchange
299,655.67 1000.63 0 573,176.54 525,608.05 217,191.88 42.02%
contract
Total 299,655.67 1000.63 0 573,176.54 525,608.05 217,191.88 42.02%
Specific principle of the
accounting policy and
calculation for derivatives in
Not applicable
the Period compared with last
period in aspect of major
changes
Description of actual profit
and loss during the reporting During the reporting period, the Company confirmed the income from derivatives investment of RMB -13588.99 million.
period
31
CHANGHONG MEILING CO.,LTD. Annual Report 2022
During the reporting period, the Company adhered to the principle of exchange rate risk neutrality, used forward foreign exchange contracts as hedging tools, and
signed forward foreign exchange contracts according to the foreign exchange receipt amount predicted by sales and the target cost exchange rate. The delivery period
Description of hedging effect matched with the predicted return amount, and the agreed delivery amount matched with the predicted return amount to avoid the risks caused by exchange rate
fluctuations. The cash flow changes in the hedging tools during the reporting period can offset the cash flow changes in the hedged items caused by exchange rate
fluctuations, which met the requirements of hedging effectiveness and achieved the hedging objectives.
Capital resource Own fund
Risk analysis:
1. Market risk: domestic and international economic situation changes may lead to exchange rate fluctuations, forward foreign exchange transactions are under certain
market 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
Risk analysis and controlling
foreign exchange contracts, and make dynamic management to the business, to ensure reasonable profit level.
measures for derivatives
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
holdings in the Period
authenticity. In addition, forward foreign exchange transactions are processed with bank credit, will not affect liquidity of company funds.
(including but not limited to
3. Bank default risk: if cooperative banks collapse within the contract time, the Company will not be able to transact the original foreign exchange contracts with contract
market risk, liquidity risk,
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
credit risks, operation risk and
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
law risks etc.)
management whose failure and the risk of loss may bring 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 market price The Company determines fair value in accordance with the Chapter VII “Determination of Fair Value” carried in the Accounting Standards for Business Enterprises
or fair value in the Period, as No.22 - Recognition and Measurement of Financial Instruments. Fair-value is basically obtained according to prices offered by bank and other pricing services. While
for analysis of the fair value fair-value of derivatives is mainly obtained according to the balance between prices given by outstanding contracts and forward prices given by contracts signed during
of derivatives, disclosed the reporting period with bank. The differences are identified as trading financial assets and liabilities. During the reporting period, forward foreign exchange contracts
specific applied methods and and losses of the Company is -13588.99 million yuan.
correlation assumption and
parameter setting
Lawsuit involved (if
Not applicable
applicable)
Disclosure date for approval
March 31,2022
from the Board for investment
32
CHANGHONG MEILING CO.,LTD. Annual Report 2022
of derivatives (if applicable)
Disclosure date for approval
from board of shareholders
April 29,2022
for investment of derivatives
(if applicable)
Upon verification, the independent directors believe that during the reporting period, the company's forward foreign exchange fund trading business was strictly carried
out in accordance with the provisions of the "Self regulatory Guidelines for Listed Companies on the Shenzhen Stock Exchange No. 1 - Standardized Operation of Main
Special opinion on derivative Board Listed Companies", the company's "Articles of Association", "Company Authorization Management Measures", "Company Forward Foreign Exchange Fund
Trading Business Management System", and other relevant systems, Operate within the authorization scope of the shareholders' meeting and the board of directors, and
investment and risk control by do not conduct foreign exchange transactions solely for profit. All forward foreign exchange fund transactions are based on normal production and operation, relying on
independent directors specific business operations, and aimed at preventing exchange rate risks. The forward foreign exchange fund trading business carried out by the company is conducive
to preventing the exchange rate risks faced by the import and export business, and meets the company's operational development needs. There are no speculative
operations, and there are no violations of relevant laws and regulations. Relevant businesses have performed corresponding decision-making procedures, and there are
no situations that harm the interests of the company and all shareholders, especially small and medium-sized shareholders.
(2）Derivative investments for speculation during the reporting period
□ Applicable √ Not applicable
The Company had no derivative investment in the reporting period.
(v) Application of raised proceeds
□ Applicable √ Not applicable
The company has no use of raised funds during the reporting period.
VIII. Sales of major assets and equity
(i) Sales of major assets
□ Applicable √ Not applicable
No major assets are sold in the period
(ii) Sales of major equity
□ Applicable √ Not applicable
33
CHANGHONG MEILING CO.,LTD. Annual Report 2022
IX. Analysis of main holding company and stock-jointly companies
√ Applicable □ Not applicable
(i) 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
Technology Co., Ltd.
Subsidiary 72,548,200 807,126,097.66 601,153,336.55 406,489,091.83 49,641,468.31 46,273,692.68
of ultra-low temperature
freezer
Manufacturing of
Jiangxi Meiling Electric Appliance Co.,
Ltd.
Subsidiary
refrigeration and freezer
50,000,000 278,324,616.56 140,259,789.88 706,341,391.00 7,552,290.98 7,558,590.98
Manufacturing of
Mianyang Meiling Refrigeration Co.,
Ltd.
Subsidiary
refrigeration and freezer
100,000,000 161,440,391.22 119,613,739.36 357,370,640.21 -534,107.81 -945,180.17
R&D, manufacturing
Sichuan Changhong Air-conditioner
Co., Ltd.
Subsidiary and domestic sales of 850,000,000 3,775,310,274.39 1,224,343,143.33 6,921,479,747.99 128,387,504.63 139,143,595.12
air-conditioning
R&D, manufacturing
Zhongshan Changhong Electric Co.,
Ltd.
Subsidiary and foreign sales of air- 334,000,000 1,621,626,963.00 183,642,460.63 3,079,395,653.40 106,761,877.14 101,756,266.88
conditioning
Hefei Meiling Group Holdings Limited Subsidiary Sales of white goods 80,000,000 1,181,996,329.32 -427,060,484.09 5,575,804,847.40 -195,650,670.93 -197,533,370.30
R&D, manufacturing
and sales of kitchen and
Changhong Meiling Ridian Technology toilet products, small
Co., Ltd.
Subsidiary 83,000,000 273,283,685.46 137,631,717.96 237,989,059.17 1,256,975.53 623,419.57
home appliances and
water purifier
R&D and sales of
Hefei Changhong Meiling Life
Appliances Co., Ltd.
Subsidiary household appliances, 50,000,000 559,292,964.66 107,277,092.17 1,419,586,443.18 48,640,149.80 40,576,245.84
kitchen appliances and
34
CHANGHONG MEILING CO.,LTD. Annual Report 2022
small home appliances
35
CHANGHONG MEILING CO.,LTD. Annual Report 2022
(ii) 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 Appliances Minor effect on the overall production and operation
Cancellation
Marketing Co., Ltd and performance of the company
Zhengzhou Meiling Electric Appliances Minor effect on the overall production and operation
Mergers & acquisition
Marketing Co., Ltd and performance of the company
Minor effect on the overall production and operation
Meiling Kadi Washing Machine Cancellation
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.
X. Structured entity controlled by the Company
□ Applicable √ Not applicable
XI. Prospects for the future development of the company
(1)Macro environment analysis
Looking forward to 2023, As domestic policies to support consumption and other related policies continue to
increase, the potential of domestic demand has been continuously released, residents' consumer confidence is
expected to be further restored, and "hustle and bustle" is returning in an orderly manner. First of all, from the
perspective of industrial structure, considering the high penetration rate of mature household appliances in China,
with the weakening of the real estate cycle attribute of the household appliances industry, the industry demand
depends more on the stock renewal, and the growth mainly depends on some emerging categories that improve the
quality of life through technological innovation. Secondly, with the recovery and improvement of residents' income
level, the consumer market will gradually recover, which will have a positive impact on the domestic market, but it
will still take some time for residents' income to recover and consumption recovery will be gradual. Thirdly, with
the relaxation of real estate policy, the performance of home appliance industry, as a post-cycle industry of real
estate, is expected to enter an improvement channel. In addition, the recovery of home decoration industry will also
drive certain household appliance consumption. Compared with domestic sales, it is facing many pressures such as
high global inflation, declining consumer demand, and orders being transferred to overseas factories in the overseas
markets, and the home appliance export market may continue to be under pressure.
(2) Industry environment analysis
1.Refrigerator (freezer) industry
In the domestic market, according to the data released by the National Bureau of Statistics, the refrigerator and
36
CHANGHONG MEILING CO.,LTD. Annual Report 2022
freezer ownership per 100 households in China has exceeded 100 in 2020, which also means that the refrigerator
market has fully entered the stock market, and the product structure upgrade and the price structure upgrade brought
about by the renewing process still exist, and the scale still maintains a steady development trend. From the
perspective of the supply side, although raw material prices of bulk commodity have fallen, they are still operating
at a high level. The long-term existence of cost pressures will continue to form a negative feedback on the scale,
and will also continue to drive industry prices higher.
At present, the domestic employment income is under pressure, and the lack of consumer confidence has a
great impact on the consumption growth of household appliances such as refrigerators and freezers. However, with
the implementation of multiple domestic consumption stimulus policies, in addition to the policy support at the
national level, measures to stimulate consumption of household appliances have been released one after another at
the local government level throughout the country; On the enterprise side, mainstream home appliance enterprises
also actively responded to the policy call, and joined hands with channel enterprises such as e-commerce platforms
and chain stores to promote sales by cutting profits for consumers; On the supply and demand side, economic
development drives the development of commercial activities, the demand for refrigeration facilities in catering and
retail industry is increasing, and the domestic market is expected to gradually warm up. AVC predicts that the retail
sales in the refrigerator market will reach 30.46 million units in 2023, with a year-on-year increase of 1.9%, while
consumers pursue the improvement of quality of life. The upgrading of market consumption structure brought by
the upgrading of refrigerators will promote the sustained price growth. It is estimated that the retail sales will reach
RMB 97.4 billion, with a year-on-year increase of 5.2%.
In terms of freezers, at present, the renewal cycle of freezer products is long, which can not stimulate the
demand for replacement; Thirdly, although the share of large-volume refrigerators is expanding rapidly with a
certain degree of extrusion, for consumers, freezers and refrigerators are still on different tracks. In 2023, the retail
volume of the freezer market in China was 9.99 million units, with a year-on-year increase of 2.6%, and the retail
volume was RMB 13.3 billion, with a year-on-year increase of 3.6%. The products such as vertical freezers and ice
bars in subdivided tracks became a popular trend, which is expected to drive the freezer category to continue to
grow in the future.
On the export side, due to the weak demand brought by the previous overdraft, the recovery of overseas
production capacity and the decline in consumer demand, plus the multiple pressures brought by high inflation,
maritime fluctuations and exchange rate changes, the demand for refrigerators in overseas markets, especially in
Europe and the United States, will probably fall back. From the perspective of export areas, although emerging
countries and some regions have sufficient growth potential, it is difficult to offset the high contraction of the broader
market. It is noted that since RCEP (ASEAN Free Trade Area) came into effect in 2022, it has had a positive impact
on the export of refrigerators and freezers in China. It is estimated that the sales of China exported to the other 14
member countries of RCEP will continue to increase in 2023. But overall, it is expected that the overall export scale
of refrigerator cabinets will continue to be under pressure in 2023.
2. Air-conditioning industry
37
CHANGHONG MEILING CO.,LTD. Annual Report 2022
In 2023, for the air-conditioning industry, there are many favorable factors, such as consumption recovery,
confidence recovery, real estate guaranteed delivery, and the release of relevant favorable policies, which will
effectively stimulate the resilience of the air-conditioning market, especially under the low base of three-year scale.
AVC predicts that the air-conditioning retail market in China will reach a sale of 58.97 million units in 2023, with
a year-on-year increase of 3.2%. Therefore, enterprises need to continuously expand and extend their channels,
scenarios and user demand.
Affected by the international situation, geopolitics, economic downturn, serious inflation, climate and other
reasons, overseas market demand is sluggish, the market continues to decline, entering stock competition, volume
and price decline at the same time, and scale growth and profits are facing double challenges.
3.Washing machine
The washing machine industry is affected by factors such as low base in 2022 and comprehensive liberalization
of prevention and control, the suppressed demand in the washing machine industry is expected to be released, which
will have a positive impact on the recovery of the domestic market of washing machines in 2023. In terms of
demand, the consumer's washing demand is gradually developing to the washing and washing care demand, and the
partition washing and mini-washing products will show greater growth potential. In terms of product trends, the
washing capacity will further increase, and the ultra-thin embedded large-capacity products will continue to grow.
Due to the slowdown of global economic recovery, consumer demand in overseas markets has not changed
significantly, but due to the influence of low base, the overall market size will remain relatively stable.
4.Kitchen & bathroom, small appliance
Under the background that economic development has entered the "new normal", residents' consumption is at
a low ebb, and saving desire is high, the competition in kitchen and bath appliance and small household appliances
market is becoming increasingly fierce, with health and intelligence becoming the important growth drivers, and
emerging channels and sinking markets becoming places of strategic importance for brands. From the perspective
of channel trends, China's home appliance market has entered an era of inventory, and offline channels are gradually
recovering, and the retail sales of online channels have maintained a positive growth. Social e-commerce has
become an important emerging channel that cannot be ignored. Judging from the consumption trend, consumers'
consumption concept has gradually changed from individual rationality to group rationality, and the best-selling
products are mostly multifunctional products with strong practicability, which are easy to store and save space.
Meanwhile, consumers' willingness to pay a reasonable premium for higher-quality goods is quietly increasing, and
high-quality products are embracing benefits. Judging from the product trend, the demand for traditional household
appliances has slowed down, and products representing health demand, integration demand and exquisite lazy
demand are still on the rise.
The competition in kitchen appliances market is fierce, and some emerging categories are still with a very low
retention rate in China, and are gradually entering ordinary families. Enterprises need accurate positioning, and
product-driven is the key to breakthrough. Meanwhile, cleaning appliances are still in the growth trend under the
overall decline of household appliances market, with diversified brands. Under the situation of rapid development
38
CHANGHONG MEILING CO.,LTD. Annual Report 2022
of categories, high cost performance will become the focus of users' attention.
5.Bio-medical
As the economic stabilization policy continues to be implemented , residents' consumption will reach a peak,
the pace of economic recovery will progress steadily, and China's economy will be under pressure, but it will develop
steadily for a long time. The medical device industry has a large market scale and numerous segments. After
experiencing equipment upgrades in grassroots medical institutions, the market demand for various types of medical
devices has returned to normality, showing a steady development trend.
With the growth of China's per capita GDP and per capita disposable income and the trend of accelerated aging,
the national expenditure on medical care will keep increasing. At the same time, with the development and
construction of China's medical and health system, users at all levels of medical and health institutions, scientific
research institutes, pharmaceutical enterprises and so on are increasing; More and more attention has been paid to
bio-safety, which has stimulated the growing demand for potential biological sample storage; With the expansion
of biopharmaceuticals, the scale of global refrigerated drugs has expanded, and the demand for cryogenic storage
equipment has continued to grow; Under the trend of intelligence, the demand for equipment iterative upgrade is
particularly obvious; National policies focus on encouraging localization and substitution of medical devices. These
development demands will continue to promote the continuous improvement of the industrial chain of the domestic
medical device industry, and also bring sustained growth momentum to the market segment of cryogenic storage
equipment.
(iii) Development strategy
1. Vision
Be a leading brand in China, World Class and respectable household appliance enterprise.
2. Strategic direction
Fully implement the guideline of "one goal, three main lines", drive organizational transformation through
reasonable commercial inventory turnover, and improve overall competitiveness with efficiency as the core, so as
to achieve the steady development of the industry.
(iv) Business plan for 2023
1. Business ideas
Focus on "one goal", closely follow "three main lines", implement "four management systems" and
unswervingly deepen marketing transformation to carry out work for business ideas. The company will firmly take
the road of efficiency-oriented, product leading and benchmarking, and continue to deepen the marketing
transformation, further strengthen the value management system centered by retail price, the operation management
system centered by reasonable commercial inventory, the marketing management system centered by retail, and the
cost control system centered by rigid budget, and continue to increase revenue, reduce costs and reduce fees in terms
of research and production, so as to achieve the goal of continuous improvement and upgrading of operations.
39
CHANGHONG MEILING CO.,LTD. Annual Report 2022
(1) One goal
"One goal" is to achieve scale growth on the premise of profitability.
(2) Three main lines
Efficiency oriented: value-oriented, to achieve continuous improvement of business by improving efficiency
in four aspects: capital efficiency, channel efficiency, product efficiency and management efficiency.
Capital efficiency: continuously focus on commercial inventory turnover, guarantee delivery timeliness,
improve the capacity of the whole supply chain, and achieve capital efficiency through retail drive.
Channel efficiency: focus on retail sales, promote quality products, improve product structure, make efforts in
e-commerce channels, expand incremental channels, consolidate basic channels, upgrade chain channels, and
continuously improve operating quality.
Product efficiency: classify and manage products, continuously improve product structure and increase gross
profit margin by creating hot products, promoting high-quality products and optimizing the value chain of inefficient
products and drainage products.
Management efficiency: the manufacturing end improves production efficiency by benchmarking, increasing
daily production, reducing labor and eliminating process obstacles; focus on multiple tariff, reduce fees and improve
efficiency, promote cost control, and enhance gross profit.
Product leading: to create products with unique value that meet the needs of Meiling consumers.
Products: refrigerators adhere to the product strategy of "quality products" + "hot products" + "hot quality
products", with a product layout around "fresh, thin, large and embedded"; The freezers are based on "deep freezing,
fresh freezing, defrosting and anti-bacteria"; The wall-mounted air conditioners are "all dust-free", and the cabinet
air conditioners are with "far-reaching and near soft cooling, share in both living room and dining room"; The
washing machines are "thin, big, simple and clean"; The kitchen and small household appliances focus on tea
ecological appliances and services, cleaning appliances, and gas water heaters to cultivate core competitiveness and
build influential brands in the industry; The biomedical products are distributed around "life science and cold chain",
and the competitiveness of products is continuously improved through "accurate positioning, enhanced layering,
revitalized bases and customized channels" to promote the benign operation of products.
Technology: to improve the capacity building of core key technologies. Master the core technology
independently to achieve industry leadership; Integrate and apply key technologies, and build the "Lingyun"
industrial Internet platform based on the concept of "collaboration, sharing, symbiosis and empowerment" to
provide users with a good trading and service experience, while promoting the open sharing and deep integration of
resources among enterprises and promoting the coordinated development of the entire industrial chain; Focus on
the core of "Zhihuijia" intelligent strategy, persist in creating three major directions: product intelligent upgrade,
service data transformation and scenario support to achieve industry advancement; Master the mechanism of hard
core science and technology to achieve industry breakthrough.
40
CHANGHONG MEILING CO.,LTD. Annual Report 2022
Benchmarking: by comprehensively benchmarking, comparing gaps, finding reasons, and filling
shortcomings, to drive the improvement in internal efficiency and terminal competitiveness. Focus on promoting
benchmarking such as product cost, production efficiency, share increase and average price increase, and improve
organizational performance, ability and efficiency.
(3) Firmly adhere to marketing transformation and implement four management systems
Deepen marketing transformation, adhere to the whole value chain operation under the industrial responsibility
system, carry out the general direction of strong management by headquarters and strong implementation by
divisions, and implement four management systems, namely, the value management system centered by retail price,
the operation management system centered by reasonable commercial inventory, the marketing management system
centered by retail, and the cost control system centered by rigid budget,.
2. Market strategy
(1) Refrigerator (freezer)
In the domestic market, promote customer-centered concept and provide consumers with products with unique
value. Promote quality products and create hot products. In terms of channels consolidate the basic channels by
promoting the refined management of core customers and expanding outlets, enhance the trend channels through
product layout and operational capabilities, improve the operating quality of chain channels by focusing on core
areas and cancelling inefficient stores, and focus on resources to rapidly expand ODM business.
In the overseas market, driven by efficiency, continuously improve the quality of overseas business. Focus on
key projects to improve R&D efficiency, improve product efficiency through internal and external collaboration and
global collaboration, and improve market and customer efficiency by focusing on advantageous markets and key
customers. Increase team and product investment in brand business, and continue to promote the construction of
overseas independent brands.
(2) Air-conditioning
In the domestic market, insist on TOC and TOB dual drive. Continue to promote the digital transformation of
basic channels, strategically expand TOP channels, intensively cultivate the three special programs of O2O
benchmark stores, continuously improve the channel operation quality, finely operate chain channels, and improve
the operation quality. Rely on the company's R&D capabilities and manufacturing capabilities, respond quickly and
serve customers in all directions, and maximize the scale under controllable risks.
In overseas markets, continue to practice the concept of "profitable scale growth and profitable cash flow
growth", adhere to brand priority, develop brand e-commerce and expand brand agency; focus on the core market
of stock and vigorously explore the market; improve product capabilities, expand customer channels, and at the
same time use efficiency improvement to reduce costs, improve quality and improve service capabilities.
(3)Washing machine
The washing machine business continues to take the industrial vision of "washing all stains and protecting the
41
CHANGHONG MEILING CO.,LTD. Annual Report 2022
whole family". With "ultra-thin embedding" as the brand difference, create a cleaning benefit point on this basis,
which will meet the practical needs of consumers for ultra-thin space saving and the aesthetic needs of embedded
installation matching versatile decoration, thus better serving the middle class who pursue quality life. Around
innovative rubbing, washing, penetrating washing care technology, a new drum product is launched to provide
machine washing clean as hand washing; The impeller breaks through the strong water flow technology with the
core technology of "small volume and large capacity, one-button intelligent washing". Serve the consumer groups
that pursue cost performance, semi-automatic replacement and full automation. Meanwhile, further expand overseas
business and ODM/OEM customers. Complete the layout of mini washing and washing care product line and
achieve a rapid breakthrough in the scale of washing machines.
(4) Kitchen and bath, small household appliances
Adhere to the principle of "focus, transformation, leap and win-win" in kitchen and bathroom and small
household appliances industries. In terms of products, focus on the core products of tea ecology, heating and clean
electrical appliances, strengthen R&D and technology implantation, create hot products in the industry, and expand
market scale and industry position; In terms of marketing channels, consolidate basic channels, strengthen trend
channels, realize "walking on two legs", enhance brand channel ability and expand brand influence.
(5) Bio-medical
Unswervingly implement the development strategy of "based on relevant diversification in biomedical field",
focus on the field of life sciences, deepen the construction of customer-oriented domestic and international channel
system, focus on the comprehensive user strategy, deeply explore the needs and potential of users, improve service
level, and expand user coverage and product market share.
The above business plans and business objectives do not represent the listed company's profit forecast for 2023.
Whether they can be realized depends on many factors such as changes in market conditions and the efforts of the
management team. There is great uncertainty, which shall be especially noted by the investors.
(V) Possible risks and countermeasures
Facing the objective factors such as more intense competition in the home appliance market, the living
environment of enterprises will be even worse. In 2023, the company will face risks such as declining industry
demand, fluctuations in exchange rates, and fluctuations in bulk material prices.
1. Industry demand declines
As domestic policies such as supporting consumption continue to increase, residents' consumer confidence is
expected to recover further in 2023. However, the traditional incremental dividend of household appliances has
ended, and a new cycle of stock replacement has started. The market development has entered a slow lane, and the
role of external environment and policy influence is relatively limited.
2. Exchange rate fluctuation risk
42
CHANGHONG MEILING CO.,LTD. Annual Report 2022
Affected by the international situation, the exchange rate fluctuates greatly. The Company will pay close
attention to exchange rate changes and operate steadily to reduce the impact of exchange rate changes.
3. Risk of price fluctuation of bulk materials
The main raw materials of the company's products are steel, copper, aluminum and plastics. If the prices of
bulk raw materials fluctuate greatly, the related costs of the company will also change accordingly, which will have
a certain impact on the company's operating performance.
4. Influence of trade friction and geopolitics
The company pays close attention to the impact of uncertain factors such as international trade friction and
geopolitics on its global business.
In view of the above risks, combined with the industry situation in 2023 and the shortcomings in 2022, the
company will focus on "one goal", closely follow "three main lines", solidly implement "four management systems"
in 2023, unswervingly deepen marketing transformation to carry out work for business ideas, and make the layout
of products, technologies and markets in advance, so as to make the company's products transform to high-end and
intelligent, enrich the product line and build a comprehensive household appliance enterprise.
XII. In the report period, reception of research, communication and interview
√ Applicable □ Not applicable
Main contents of the
Receptio Basic situation index of
Time Location Way Type discussion and the
n object investigation
information provided
The shareholders
and investors who
participated in the Holding a presentation on
Panorama network
interactive the 2021 annual business http://irm.cninfo.com.cn/ircs/compa
"investor relations
April 13,2022 interactive platform" Other Other exchange at the results and responding the ny/companyDetail?stockcode=0005
2021 annual questions that investors 21&orgId=gssz0000521
（https://ir.p5w.net）
business concerned
presentation of
the Company
Shenzhen Stock
Exchange,
Guoyuan
#2 reference room of Field http://irm.cninfo.com.cn/ircs/compa
Securities, Hua'an Operation condition of
June 9,2022 the company's multi- researc Institute
Securities, the Company
ny/companyDetail?stockcode=0005
function center h 21&orgId=gssz0000521
Panorama
Network and
other investors
Zhejiang Jing'an
#2 reference room of Field http://irm.cninfo.com.cn/ircs/compa
Investment Operation condition of
November 15,2022 the administrative researc Institute ny/companyDetail?stockcode=0005
Management Co., the Company
center of the Company h 21&orgId=gssz0000521
Ltd
43
CHANGHONG MEILING CO.,LTD. Annual Report 2022
IV. Corporate Governance
I. Corporate governance of the Company
(i) Overview of the corporate governance
In strict compliance with the Company Law, Securities Law, Governance Principles of Listed Company issued by
the CSRC, the Rules Governing the Listing of Stocks on Shenzhen Stock Exchange and Shenzhen Stock Exchange
Self-Regulatory Guidelines No.1- Standardized Operation of the Listed Companies on main Board of SSE, the
Company continued to construct and perfect its governance structure, thereby forming its decision-making,
supervision and operation management organization with general meeting, the board of directors, the board of
supervisors and operation management as the major structure. The general meeting, board of directors, board of
supervisors and operation management of the Company has definite terms of reference, which can ensure an
effective balance, scientific decision-making process and coordinative operation, laying firm foundation for making
decisions relating to the Company’s continuous, steady and healthy development.
During the reporting period, the actual situation of corporate governance has been in line with the requirements of
relevant state laws and regulations, and regulatory documents relevant to governance of listed companies issued by
China Securities Regulatory Commission and Shenzhen Stock Exchange.
During the reporting period, the company revised and promulgated the Articles of Association, Rules of
Procedure for the General Meeting of Shareholders, Rules of Procedure of the Board of Directors and Rules of
Procedure for the Board of Supervisors, which further improved the standard operation and governance level of the
Company. The overall situation of corporate governance meets the requirements of relevant national laws and
regulations, and regulatory documents on corporate governance of listed companies issued by China Securities
Regulatory Commission and Shenzhen Stock Exchange.
1. Shareholders and general meeting
The Company standardized the procedures concerning convening, holding and voting of general meeting in strict
compliance with the Articles of Association and Rules of Procedure of General Meeting. All shareholders, especially
the minority shareholders, were equally treated to ensure all shareholders shall rank equal status and can fully
exercise their right. During the reporting period, the Company convened shareholders general meetings. In addition
to convening general meeting in forms of site conference, the Company offered convenience for shareholders to
present general meeting via network voting which was safe, economic and convenient. At the same time, all the
matters submitted to the Company’s general meeting of shareholders should count the votes of the small and medium
investors separately, and the results of the vote count should be disclosed timely so as to effectively protect the
rights and interests of small and medium investors and ensure that all shareholders, especially the small and medium
shareholders, fully exercise their rights.
2. The Company and controlling shareholders
The Company has independent business and independent management capability. The Company and its controlling
44
CHANGHONG MEILING CO.,LTD. Annual Report 2022
shareholders owe independent business, personnel, assets, organs and finance. During the period, controlling
shareholder abide by requirement of Article of Association and Management System of Related Transactions,
strictly regulate their behaviors, and no controlling shareholder has directly or indirectly intervened in the
Company’s policy-making and business activities beyond the general meeting of stockholders, no capital or assets
of the Company occupied by controlling shareholder and its affiliates either.
3. The directors and board of directors
Board Meeting are revoke and open in line with the regulation of Company Law and Article of Association strictly,
voting and information disclosure procedures appliance with relevant rules.All directors of the company have
carried out the work in accordance with the Rules of Procedure for the Board of Directors and the Independent
Director System, conscientiously attended the board meetings and the shareholders' meetings, exercised their
powers in accordance with the law, performed their duties diligently, and actively participated in relevant training
organized by the Shenzhen Stock Exchange and Anhui Securities Regulatory Bureau, the Listed Companies
Association of Anhui, and have been familiar with relevant laws and regulations. Independent directors strictly abide
by the Guiding Opinions on Establishing an Independent Director System in Listed Companies, the Independent
Director System and other regulations, in line with a serious, diligent and loyal working attitude, based on an
independent and prudent stand, actively participated in the company's decision-making, carefully considered various
proposals, issued prior approval and independent opinions on related transactions and major issues, fully exerted
the supervision and check and balance role of independent directors, and effectively safeguarded the interests of the
company and all shareholders, especially the small and medium shareholders. The four special committees of
strategy, remuneration and assessment, audit and nomination under the board of directors of the company have been
responsible for the discussion, decision-making, supervision and evaluation of major work issues of the company
according to the corresponding working rules of each departmental committee, and quality played an important role
in the scientific decision-making and the improvement of decision-making efficiency and quality.
4. Supervisors and board of supervisors
The Company convened and held meeting of supervisors in strict compliance with the Company Law and Articles
of Association, and the voting and information disclosure procedures of supervisors’ meeting complied with relevant
requirements. The tenth board of supervisors of the company has five supervisors, including two employee
supervisors, the number and constitution of the board of supervisors meet the requirements of laws and regulations.
All supervisors of the company can earnestly perform their duties in accordance with the requirements of the Rules
of Procedure for the Board of Supervisors, supervise the decision-making procedures and resolutions of the board
of directors and the legal operation of the company, review the regular reports prepared by the board of directors
and put forward written review opinions, and effectively supervise and express independent opinions on the
company's major events, related transactions, financial status, the legality and compliance of directors and senior
executives’ performance of duties by attending the general meeting of shareholders and the meeting of the board of
directors from the perspective of safeguarding the legitimate rights and interests of the company and shareholders.
5. The performance appraisal and incentive and constraint mechanism
According to the Articles of Association, the Board of Directors of the company will decide to appoint or
45
CHANGHONG MEILING CO.,LTD. Annual Report 2022
dismiss the president, secretary of the Board of Directors and other senior management personnel of the company,
and decide on their remuneration, rewards and punishments; According to the nomination of the president, decide
to appoint or dismiss senior management personnel such as the company's vice president and financial officer, and
decide on their remuneration, rewards and punishments. The performance evaluation of directors, supervisors,
presidents and other senior management personnel shall be conducted by the Human Resources Department of the
company on a daily basis, and by the Remuneration and Appraisal Committee of the company at the end of the year.
The company has established and continuously improved fair and transparent performance evaluation standards and
incentive and restraint mechanisms for directors, supervisors and senior management personnel. The appointment
of company managers is open and transparent, in line with the relevant provisions of laws and regulations.
6. The stakeholders
The Company fully respects and maintains the legitimate rights and interests of stakeholders; strengthen
communication and negotiation with each other, realizes the coordination and balance of interests for all parties
including society, shareholders, company and staff, pushes forward the sustainable, steady and harmonious
development of the Company together.In terms of safeguarding the interests of shareholders, the company treats all
shareholders, especially the small and medium-sized shareholders equally, in strict accordance with relevant
regulations, and ensures that all shareholders enjoy equal status and fully exercise their rights by regulating the
convening, holding and voting procedures of the general meeting of shareholders.
In terms of maintaining employees' rights and interests, starting from the company's strategy and business
development, it has continuously promoted and improved talent mechanisms such as talent reserve, learning and
development, career planning and guidance, whole-process performance management, and salary incentive system,
regularly evaluated and continuously monitored employees' engagement, satisfaction level and corporate culture
evaluation index, continuously improved employees' concerns, given full play to employees' vitality, stimulated
employees' potential, and realized employees' personal development goals while achieving organizational goals; In
terms of safeguarding the interests of relevant parties, guided by the corporate values of "creating and sharing
together", it has been committed to establishing a win-win cooperation model of common development and common
growth with relevant parties, promoting and promoting two-way communication and information sharing based on
the principle of equality and mutual benefit in cooperation, and constantly exploring the optimization of cooperation
models such as management, personnel, cost and efficiency.
7. About information disclosure and transparency
During the reporting period, the company strictly complied with relevant provisions of the Listing Rules of
Shenzhen Stock Exchange and the company's Information Disclosure Management System, strengthened the
management of information disclosure affairs, actively fulfilled its information disclosure obligations, and
designated Securities Times, China Securities Journal, Hong Kong Commercial Daily and Juchao Information
Website（Juchao Website (www.cninfo.com.cn)）as the designated media for the company's information
disclosure, implemented strict confidential procedures for material undisclosed inside information, and controlled
the scope of informed personnel. The company earnestly fulfilled its obligations to disclose relevant information in
a true, accurate, timely and complete manner, and ensured that all investors equally enjoy the right to know and
46
CHANGHONG MEILING CO.,LTD. Annual Report 2022
other legitimate rights and interests.
8. Investor relations management
During the reporting period, the Company continued to well ensure investor relations management, deepen
communication and exchanges with investors, enhance investors' understanding and recognition of the company,
and safeguard investors' legitimate rights and interests in accordance with the requirements of the Company's
Investor Relations Management System and Reception and Promotion Work System. During the reporting period,
the company communicated with investors through the "Hudongyi" platform of investor relations of Shenzhen Stock
Exchange, fully listened to investors' opinions and suggestions, and earnestly protected the interests of small and
medium-sized investors; well ensured answering and replying investors' visits and calls, as well as receiving and
replying faxes and e-mails, and treated media reports with caution; In order to help investors further understand the
company's operating performance and financial condition, the company organized the 2021 online performance
briefing and achieved good results, which helped investors to understand the listed companies more
comprehensively and enhanced the transparency of the company; It held the Anhui Investor Service Week of
Shenzhen Stock Exchange - Entering the Listed Companies, which further broadened the communication channels
of investors, earnestly safeguarded the legitimate rights and interests of investors, and constantly promoted and
improved the management level of investor relations in the company.
ii)Whether there are significant differences between the actual state of corporate governance and laws,
administrative regulations and the provision with governance concerned for listed companies issued by
CSRC
□Yes √ No
There are no significant differences between the actual state of corporate governance and laws, administrative
regulations and the provision with governance concerned for listed companies issued by CSRC
II. Independence of the Company relative to controlling shareholder and the actual controller in ensuring
the Company’s assets, personnel, finance, organization and businesses
The Company totally separated in business, personnel, assets, institutions and financial aspects from Sichuan
Changhong (controlling shareholder) and actual controller State-owned Assets Supervision & Administration
Commission of Mianyang Municipality, with independent business accounting, responsibility and risk and
independent business operation capability.
1. The business: the Company has an independent and complete business as well as operation ability, with
specialized procurement, production, technology, marketing, management, human resources and other departments.
We autonomously manage and operate business on our own. While the management staff are independent from
controlling shareholders and their subordinate enterprises. The Company is free from interference by controlling
shareholders and other affiliates, and there is no dependence on controlling shareholders and other affiliates.
2. The personnel: personnel, labor, personnel and salary of the Company are completely independent. President,
vice president, person in charge of finance, Secretary of the board of directors and other senior management
47
CHANGHONG MEILING CO.,LTD. Annual Report 2022
personnel are working in the Company and receive salary, not receiving any remuneration and holding position of
any except directors, supervisors in the controlling shareholder and its subordinate enterprises.
3. Assets: the Company owns places of production and management independent from its controlling shareholder,
owns complete assets structure, independent production system, auxiliary production systems and supporting
facilities, land use rights, ownership of houses and other assets, and independent purchase and sales system. No
assets occupied by controlling shareholders and other affiliates.
4. Institutions: the Company established organization completely independent from controlling shareholders; the
general meeting, board of directors, board of supervisors and the internal organization are capable of taking
independent action, with no controlling shareholder intervention of corporation's decision-making behavior. The
Company strengthen the power restriction system via general meeting, the Board, supervisory committee,
independent directors and vary committees, formulated an effective structure for corporate governance.
5. Financial aspects: the Company set up independent financial management, and independent accounting system
and financial management system, independently setting up banking account and tax declaration.
III. Horizontal competition
□ Applicable √ Not applicable
IV. In the report period, the Company held annual shareholders’ general meeting and extraordinary
shareholders’ general meeting
(i) Annual Shareholders’ General Meeting in the report period
Ratio of
Session of investor
Type Date Date of disclosure Index of disclosure
meeting participati
on
First
Extraord
Extraordinary
inary
General 6.0286% January 5,2022 January 6,2022 www.cninfo.com.cn( Announcement No.:2022-002）
General
Meeting of
Meeting
2022
AGM of 2021 AGM 31.9056% April 28,2022 April 29,2022 www.cninfo.com.cn( Announcement No.:2022-033）
Second
Extraord
Extraordinary
inary
General 31.9478% January 29,2022 June 30,2022 www.cninfo.com.cn( Announcement No.:2022-049）
General
Meeting of
Meeting
2022
Third
Extraord
Extraordinary
inary
General 31.9483% August 19,2022 August 20,2022 www.cninfo.com.cn( Announcement No.:2022-066）
General
Meeting of
Meeting
2022
Fourth
Extraord
Extraordinary
inary
General 31.7693% December 22,2022 December 23,2022 www.cninfo.com.cn( Announcement No.:2022-100）
General
Meeting of
Meeting
2022
(ii) Request for extraordinary general meeting by preferred stockholders whose voting rights restore
□ Applicable √ Not applicable
48
CHANGHONG MEILING CO.,LTD. Annual Report 2022
V. Directors, supervisors and senior officers
(i) Basic information
Shares held Shares Reasons for
Worki Number of shares Number of shares Other
Start dated of office End date of office at period- held at increase or
Name Title ng Sex Age increased in this decreased in this changes
term term begin period-end decrease of
status period (share) period (share) (share)
(share) (share) shares
Wu Chairma In
Male 50 July 3,2014 October 12,2023 570,500 0 0 0 570,500 Not applicable
Dinggang n office
Zhong Director, In
Male 50 December 30,2013 October 12,2023 236,175 0 0 0 236,175 Not applicable
Ming President office
Yong In
Director Male 54 September 12,2017 October 12,2023 0 0 0 0 0 Not applicable
Fengshan office
Director,
Kou In
Deputy Male 53 July 3,2014 October 12,2023 0 0 0 0 0 Not applicable
Huameng office
president
Director,
In
Hu Zhaogui Deputy Male 49 June 21,2018 October 12,2023 178,050 0 0 0 178,050 Not applicable
office
president
In
Zhao Qilin Director Male 47 December 23,2021 October 12,2023 0 0 0 0 0 Not applicable
office
Independ
Hong In
ent Male 47 October 12,2020 October 12,2023 0 0 0 0 0 Not applicable
yuanjia office
director
Independ
In
Mou Wen ent Female 56 October 12,2020 October 12,2023 0 0 0 0 0 Not applicable
office
director
Independ
In
Zhao Gang ent Female 44 October 12,2020 October 12,2023 0 0 0 0 0 Not applicable
office
director
Chairma
n of In
Shao Min Male 40 September 12,2017 October 12,2023 0 0 0 0 0 Not applicable
Supervis office
ory
Supervis In
He Xintan Male 42 September 12,2017 October 12,2023 0 0 0 0 0 Not applicable
or office
Huang Supervis In
Female 52 September 12,2017 October 12,2023 0 0 0 0 0 Not applicable
Hong or office
Staff
In
Ji Ge supervis Female 41 December 25,2017 October 12,2023 0 0 0 0 0 Not applicable
office
or
49
CHANGHONG MEILING CO.,LTD. Annual Report 2022
Staff
Sun In
supervis Female 51 March 30,2021 October 12,2023 0 0 0 0 0 Not applicable
Hongying office
or
Executiv
Liu In
e deputy Male 59 June 20,2011 October 12,2023 1,689,893 0 0 0 1,689,893 Not applicable
Hongwei office
president
Huang Deputy In
Male 53 September 12,2017 October 12,2023 356,450 0 0 0 356,450 Not applicable
Danian president office
Tang Deputy In
Male 52 March 29,2021 October 12,2023 0 0 0 0 0 Not applicable
Youdao president office
CFO
(person
Pang In
in charge Male 47 October 25,2017 October 12,2023 0 0 0 0 0 Not applicable
Haitao office
of
finance)
Reduce
Secretar
In holdings due to
Li Xia y of the Female 42 May 22,2009 October 12,2023 552,800 0 138,200 0 414,600
office the need for
Board
own funds
Total -- -- -- -- -- -- 3,583,868 0 138,200 0 3,445,668 --
50
CHANGHONG MEILING CO.,LTD. Annual Report 2022
1. During the reporting period, whether there was any departure of directors and supervisors and dismissal
of Senior Officers
□ Yes√No
2. Changes of directors, supervisors and senior executives
□Applicable√Not applicable
(ii) Post-holding
1. Professional background, major working experience and present main responsibilities in Company of
directors, supervisors and senior executive at the present
(1) Wu Dinggang, male, the Han nationality from Suining, Sichuan Province, was born in March 1973, Member of
CPC, owns bachelor degree, graduate from Tianjin University of Commerce China (Tianjin University of
Commerce now), major in refrigeration equipment and cryogenic technique. He served successively as GM of
Suining Sale Branch and Chengdu Sales Branch of Sichuan Changhong Electric Co., LTD, director of Sichuan and
Chongqing Marketing Management Department of Sichuan Changhong Electric Co., LTD, deputy GM of
Changhong Electronics (China) Marketing Co., GM of market planning center of Changhong Multimedia Industry,
director and GM of Le-Jia-Yi Chain Management Co., Ltd., ZhongkeMeiling Cryogenic Technology Co., Ltd.
director and GM of Sichuan Changong Air Conditioner Co., Ltd and deputy president, president, deputy chairman
and Party Secretary of the Company. Currently he serves as director, vice GM of Sichuan Changhong Electric Co.,
Ltd., chairman of the Company; Chairman of Zhongshan Changhong Electric Co., LTD; Chairman of Sichuan
Changhong Air-conditioner Co., Ltd. and Chairman of ZhongkeMeiling Cryogenic Technology Co., Ltd.
(2) Zhong Ming, male, the Han nationality from Meishan, Sichuan Province, was born in November 1972, member
of CPC, a senior engineer, doctoral degree, EMBA degree from University of Science and Technology of China,
PhD degree in Engineering Thermophysics. He successively served as deputy director of research institution of
Sichuan Changhong Air-conditioner Co., Ltd., deputy GM of Sichuan Changhong Air-conditioner Co., Ltd. and
technical director of household appliance group of Sichuan Changhong Electric Co., Ltd. He serves as director
President and Party Secretary of the Company currently , Chairman of Zhongshan MeilingWulian Technology Co.,
Ltd., Director of Sichuang Changhong Air-conditioning Co., Ltd., and Director of Zhongke Meiling Low
Temperature Technology Co., Ltd.
(3) Yong Fengshan, male, Han nationality, was born in Ding yuan, Anhui in June 1968, a member of the Communist
Party of China, a senior accountant, and a master degree holder. He ever took the posts of the director of finance
department of Hefei Cable Factory, the director of finance division and the deputy chief accountant of Hefei Meiling
Co., Ltd., the deputy general manager and chief accountant of Hefei Meiling Group Holding Co., Ltd., the secretary
of the party committee and the GM and the president of Hefei Industrial Investment Holdings Co., Ltd.Currently he
serves asthe secretary of the party committee and the president ofHefei Industry Investment Holding (Group) Co.,
Ltd., the secretary of the party committee and the GM and the president ofHefei Industrial Investment Holdings Co.,
Ltd., chairman of Hefei State-owned Assets Holding Co., Ltd., the president of CAS (Hefei) Institute of Technology
Innovation Co., Ltd., chairman of Hefei Venture Capital Guiding Fund Co., Ltd., director of Anhui Jianghuai
51
CHANGHONG MEILING CO.,LTD. Annual Report 2022
Automobile Co., Ltd., chairman of Hefei Kechuang Group Co., Ltd., chairman of Hefei Talent Development Group
Co., Ltd.and the director of the Company.
(4)Zhao Qilin, male, Han nationality, born in September 1975, graduated from Southwestern University of Finance
and Economics with a bachelor's degree in rural finance, and served as accountant of the financial department,
investment project manager, asset management manager of asset management department, manager of investment
management department, and securities affairs representative of Sichuan Changhong Electric Co., Ltd.; financial
manager of Sichuan Changhong Innovation Investment Co., Ltd.; chief financial officer and and joint company
secretary of Changhong Jiahua Holdings Co., Ltd.. He currently serves as secretary of the board, general counsel,
office director of the board of directors, and director of the asset management department of Sichuan Changhong
Electric Co., Ltd., director of Anjian Holdings Co., Ltd.,director of Sichuan Changhong Innovation Investment Co.,
Ltd.. and the director of the Company.
(5) Kou Huameng, male, the Han nationality from Yanting, Sichuan Province, was born in February 1970, Member
of CPC, master degree candidate, EMBA graduate from UESTC. He served successively as deputy director of
production office of Sichuan Changhong Electric Co., LTD, director of Guangxi Marketing management Committee,
director of Fujian-Jiangxi Marketing Management, General Manager of Changhong Audiovisual Company and
director and GM of Guangdong Changhong Digital Technology Co., Ltd.; Sichuan Changhong Electric Co., Ltd,
director of development management department of Sichuan Changhong Electric Co., Ltd., and director of
ChanghongHuayi Compressor Co., Ltd.; now he serves as director and deputy president of the Company.
(6) Hu Zhaogui, male, the Han nationality, born in Feixi Hefei in October 1974, a member of the Communist Party
of China, holds a master’s degree, graduated from Chongqing University as a master of business administration. He
has served successively as the head of marketing and sales department stationed abroad of Hefei Meiling Co., Ltd.,
assistant president and general manager of the freezer and washing machine business division, and general manager
of the domestic marketing division. He is currently the director and vice president of the Company and the general
manager of Sichuan Changhong Air Conditioner Co., Ltd.
(7) Hong yuanjia, male, Han nationality, born in February 1975, Shantou, Guangdong, holds a master degree,
graduated from Shanghai University of Finance and Economics majoring in international business management,
and is Fudan University MPAcc (Master of Accounting), CPA, International Accountant (AIA), intermediate
accountant, and intermediate economist. He once served as the foreign currency payable supervisor and investment
supervisor of China Eastern Airlines Co., Ltd., the deputy manager of the financial department of the Shanghai
Representative Office of SanchengHongji (Hong Kong) Co., Ltd., the accounting manager of General Electric
Lighting Co., Ltd., the accounting manager of General Electric Industrial Supply Co., Ltd., and Chief Financial
Officer of Lingji Electronics (General Electrical Industry System Power Supply). He is currently the Chief Financial
Officer of Asia Pacific Region of Yiluo Technology (Shanghai) Co., Ltd. and an independent director of the
Company.
(8) Mou Wen, female, Han nationality, born in September 1965, Hengshan, Hunan, holds a master's degree, an
accountant, and holds a master's degree in business management from Sichuan University. She previously served
as a lecturer in the School of Business Administration of Sichuan University, an Associate Professor of Accounting
52
CHANGHONG MEILING CO.,LTD. Annual Report 2022
in the School of Business Administration of Sichuan University, an independent director of Tibet Mineral
Development Co., Ltd., Sichuan Jinlu Group Co., Ltd., Huayi Compressor Co., Ltd., Jinhui Liquor Co., Ltd.,
Sichuan Teway Food Co., Ltd., and Hebei Baoli Engineering Equipment Group Co., Ltd., a member of Investment
Decision Advisory Committee of Sichuan Chuanjiao Road and Bridge Co., Ltd., and financial consultant of Sichuan
Daka Electric Co., Ltd., etc. She is currently Associate Professor and Master Supervisor of Business School of
Sichuan University, and an independent director of Chengdu Guibao Science and Technology Co., Ltd.,
MianyangFulin Precision Machinery Co., Ltd., Sichuan Joyou Digital Technology Co., Ltd., Tibet Mineral
Development Co., Ltd., and an independent director of the Company.
(9) Zhao Gang, male, Han nationality, born in April 1977, Peixian, Jiangsu Province, is a member of the Communist
Party of China, holds a doctoral degree, graduated from the University of Science and Technology of China majoring
in power engineering and thermophysics. He once served as a post doctorate and an associate professor in the
Department of Mechanics and Mechanical Engineering of the University of Science and Technology of China, a
professor of orbital systems in the Department of Electronic Science and Technology, a special researcher for
foreigners in the Japan Society for the Promotion of Science, School of Engineering, Kyushu University, Japan, and
a senior research scholar in the Department of Mechanical Engineering at the University of Washington. He is
currently the executive director, professor and doctoral supervisor of the Department of Electronic Science and
Technology of the University of Science and Technology of China, the deputy director of the Anhui Life Resources
Conservation and Artificial Organ Engineering Technology Research Center, a part-time professor of the
Department of Mechanical Engineering of the University of Washington, and an independent director of the
Company.
(10) Shao Min, male, Han nationality, was born in Linyi, Shandong in March 1983, and earned a bachelor’s degree
in accounting major from Xi’an Jiaotong University. He joined in work in July 2004, and ever served as the
accountant and finance manager of the branch office of Sichuan Changhong Electric Co., Ltd., the financial director
of finance department, the project manager of asset management department, manager of Assets Operation Division
of Assets Management Dept, deputy director and director of the Assets Management Dept.of Sichuan Changhong
Electric Co., Ltd. He currently serves as the head of Capital Operation Dept.of Sichuan Changhong Electric Co.,
Ltd., director of ChanghongHuayi Compressor Co., Ltd., director of Sichuan Changhong New Energy Technology
Co., Ltd., and the chairman of the Board of Supervisors of the Company.
(11) He Xintan, male, Han nationality, was born in Xiayi, Henan in April 1980, a member of the Communist Party
of China, an economist, and earned a master’s degree in management science and engineering from Xi’an Jiaotong
University. He joined in work in July 2002, He has successively served as the Operation Management Director of
the Operation Management Department of Sichuan Changhong Electric Appliance Co., Ltd., the Manager of the
General Management Department, the Director of the Development Management Department of Sichuan
Changhong Electric Appliance Co., Ltd., the Director of Changhong Huayi Compressor Co., Ltd., and the General
Manager Assistant of Sichuan Changhong Electric Appliance Co., Ltd., and currently holds positions such as the
General Manager of Zhongjiu Flash Medical Technology Co., Ltd., and the Supervisor of the Company.
(12) Huang Hong, female, Han nationality, was born in Shehong, Sichuan in June 1970, a member of the Communist
Party of China, a master degree holder, graduated from the University of Glasgow as a MBA, and a senior auditor.
53
CHANGHONG MEILING CO.,LTD. Annual Report 2022
She joined in work in July 1992, and ever served as the financial director of finance department, the audit manager,
marketing audit director, and audit chief of auditing department of Sichuan Changhong Electric Co., Ltd. He
currently serves as the deputy director of auditing department and thedeputy director of labor union audit committee
of Sichuan Changhong Electric Co., Ltd., and a supervisor of the Company.
(13) Ji Ge, female, Han nationality, was born in Nanyang, Henan Province in January 1982, a member of the
Communist Party of China, and earned a bachelor’s degree in law from Hunan University and a master’s degree
from Anhui University. She joined Hefei Meiling Co., Ltd. in July 2005 and once served as the legal specialist of
legal department, the sponsor of legal affairs, and the intellectual property director of the legal department of the
Company. She currently serves as head of director office and risk control compliance dept and staff supervisor of
the Company.
(14)Sun Hongying, female, Han nationality, native of Tongcheng, Anhui, born in March 1972, member of the
Communist Party of China, master degree, intermediate accountant, graduated from Hefei University of Technology
with a major in accounting. She successively served as deputy director of the cost center, director of the financial
department of the refrigerator business division, and deputy director of the financial management department of
Changhong Meiling Co., Ltd.. She currently serves as employee supervisor and deputy director of the refrigerator
and freezer division of the finance and economics department of the Company.
(15) Liu Hongwei, Male, Chinese American, bored in May 1963, Doctor of Applied Mechanics from Lehigh
University, graduate from department of mechanical engineering, Tsinghua University. He served successively in
Kulicke and Soffa Industries, Pennsylvania; Tessera Technology Corporation, Califonia; serves technical and
management post in Intel Corporation in Silicon Velleg. He joints the Hefei Meiling Co., Ltd. in 2007, now he
serves as executive deputy president of the Company.
(16) Huang Danian, male, Han nationality, was born in Huaining, Anhui in November 1969, a member of the
Communist Party of China, a senior engineer, and a master degree holder. He once served as the logistics director
and the deputy general manager, the director of the human resources department, the director of the comprehensive
planning department, head of budget management dept. , and the assistant to the general manager of Sales Company
of Hefei Meiling Co., Ltd. He is now the vice president of the Company.
(17)Tang Youdao, male, Han nationality, was born in Xuancheng, Anhui in July 1970, a undergraduate degree and
graduated from Wuhan University of Technology, majoring in industrial management engineering. He hold jobs
successively as overseas marketing manager, head of marketing dept., head of overseas marketing dept. and general
manager of overseas business division under the name of Hefei Meiling Co., Ltd. Currently vice president and
general manager of overseas refrigerator/washing machine division of the Company.
(18) Pang Haitao, male, Han nationality, was born in Qionghai, Hainan in May 1975, a member of the Communist
Party of China, a senior accountant, a senior political engineer, and a bachelor degree holder, and earned the EMBA
degree from Jiangxi University of Finance and Economics. He used to be a member of the finance department, the
director of related transactions and the director of capital operations of Sichuan Changhong Electric Co., Ltd., the
chief of finance office of Guangdong Changhong Electronics Co., Ltd., the director ofgeneral ledger, the head of
general management office, and the head of general ledger management office of the finance department of Sichuan
Changhong Electric Co., Ltd., the deputy general manager and chief financial officer of Sichuan Changhong
54
CHANGHONG MEILING CO.,LTD. Annual Report 2022
Development Co., Ltd., the deputy general manager and chief accountant of Huayi Compressor Co., Ltd. Currently
he is the chief financial officer (person in charge of finance) of the Company.
(20) Li Xia,female, the Han nationality from Qionglai, Sichuan Province, was born in October 1980, Member of
CPC and Intermediate Accountant with Master Degree. She graduated from Accounting Department of Sichuan
University Business and Management School. She ever was Project Manager in Financing & Acquisition Office of
Asset Management Department and Business Executive in Board Office of Sichuan Changhong Electronic Co., Ltd.
she took the posts of Deputy GM and Financial Supervisor of Sichuan Changhong Innovation Investment Co., Ltd.,
and chairman of supervisory committee ofZhongkeMeiling Cryogenic Technology Co., Ltd. She is the Secretary of
the Board, deputy secretary of the Party, secretary of discipline inspection commission and general counselof the
Company recently.
2. Post-holding in shareholder’s unit
√ Applicable □ Not applicable
Drawing
remuneration and
Start date of End date of office
Name Shareholder’s unit Title allowance from
office term term
shareholder’s unit
(Y/N)
Sichuan Changhong Electric Co., Director 2020.06.30 2023.06.29 N
Wu Dinggang
Ltd. Deputy GM 2019.01.11 2023.06.29 Y
Hefei Industry Investment Holding Party Secretary,
Yong Fengshan 2015.02 - Y
(Group) Co., Ltd. Chairman
Secretary of the Board of
2020.12.16 2023.06.29 Y
Sichuan Changhong Electric Co., Directors
ZhaiQilin
Ltd. General counsel 2022.02.14 2023.06.29 N
Chief Compliance Office 2022.11.25 2023.06.29 N
Post-holding in shareholder’s unit N/A
3. Post-holding in other unit
√ Applicable □ Not applicable
Drawing
remuneration
Start date of office End date of office
Name Other unit Title and allowance
term term
from other unit
(Y/N)
Sichuan Zhiyijia Network Technology Co., Ltd. Chairman 2021.01.25 - N
Lejiayi Chain Management Co., Ltd. Chairman 2019.04.25 - N
Sichuan Kuaiyidian Electrical Service Chain Co., Chairman
Wu Dinggang 2019.06.10 - N
Ltd.
Mianyang Kuaiyidian Electric Appliance Service Chairman
2022.11.04 - N
Chain Co., Ltd.
Sichuan Kuaiyidian Electric Appliance Service
Zhong Ming DDirector 2022.03.15 - N
Chain Co., Ltd.
Hefei Venture Capital Guidance Fund Co., Ltd. Chairman 2015.04 - N
CAS (Hefei) Technical Innovation Engineering Chairman
2015.04 2022.11 N
Institute Co., Ltd.
Hefei State-owned Assets Holding Co., Ltd. Chairman 2015.04 - N
Yong Chairman, General
Fengshan Hefei Industry Investment Holding Co., Ltd. Manager, Secretary of the 2008.06 - N
Party Committee
Anhui Jianghuai Automobile Group Co., Ltd. Director 2018.07.20 2025.05.30 N
Hefei Kechuang Group Co., Ltd. Chairman 2021.05 - N
Hefei Talent Development Group Co., Ltd. Chairman 2022.01 - N
Zhao Qilin Sichuan Changhong Innovation Investment Co., Director 2021.01.21 - N
55
CHANGHONG MEILING CO.,LTD. Annual Report 2022
Ltd.
WIDEMIRACLELIMITED Director 2014.07.14 - N
Ganghong Industrial Co., Ltd. Director 2013.06.18 - N
SUFFICIENTVALUEGROUPLIMITED Director 2013.06.18 - N
ChanghongJiahua (Hong Kong) Information
Director 2021.01.08 - N
Products Co., Ltd.
Anjian Holdings Co., Ltd. Director 2012.01.19 - N
Guangzhou Huanwang Technology Co., Ltd. Director 2022.04.23 N
Changhong Jiahua Holdings Co., Ltd. Director 2023.03.17 - N
Lejiayi Chain Management Co., Ltd. Director 2018.01.23 - N
Sichuan Zhiyijia Network Technology Co., Ltd. Director 2019.07.25 - N
Hu Zhaogui Hong Yuan Ground Energy Heat Tech. Co., Ltd. Vice Chairman 2017.12.27 - N
Sichuan TianyouGuigu Technology Co., Ltd. Director 2018.01.16 - N
Chengdu Guigu Environmental Tech. Co., Ltd. Director 2018.06.30 - N
Hong Yuanjia Yiluo Technology( Shanghai) Co., Ltd. CFO of Asia pacific 2014.06 - Y
Associate professor,
Business School of Sichuan University 1995.02 - Y
master tutor
Mou Wen MianyangFulin Precision Machinery Co., Ltd. Independent director 2017.06.23 2023.06.30 Y
Sichuan Junyi Digital Technology Co., Ltd. Independent director 2021.07.01 2024.06.30 Y
Tibet Mining Development Co., Ltd. Independent director 2021.03.09 2024.03.08 Y
Department Executive
Zhao Gang University of Science and Technology of China Director, Professor, 2011.04 - Y
Doctoral Supervisor
ChanghongHuayi Compressor Co., Ltd. Director 2021.02.25 2024.05.12 N
Sichuan Changhong New Energy Technology
Director 2018.05.10 2024.12.19 N
Co., Ltd.
Shao Min Sichuan Changhong Gerun Environmental
Director 2018.01.01 2025.02.09 N
protection Technology Co., Ltd.
Sichuan Changhong Electronics Holding Group Head of Capital Operation
2021.03.01 - Y
Co., Ltd. Dept.
He Xintan Zhongjiu Flash Medical Technology Co., Ltd president 2023.03.21 - Y
Huang Hong Sichuan Changhong Electronics Holding Group Deputy Director of Audit 2011.09.16 - Y
Co., Ltd. Department
Pang Haitao Hefei Xingmei Asset Management Co., Ltd. Director 2018.02.05 - N
Post-holding in other unit N/A
4. Punishment of securities regulatory authority in recent three years to the company’s current and
outgoing directors, supervisors and senior management during the reporting period
□ Applicable √ Not applicable
(iii) Remuneration of directors, supervisors and senior executives
1. Decision-making, determine basis and actually payment of remuneration for directors, supervisors and
senior executives
(1) Procedure for deciding remunerations of directors, supervisors and senior management
Implemented in line with laws, regulations and relevant rules of “Company Law”, “Article of Association” and
“Enforcement Regulation of Remuneration and Evaluation Committee of the Board”, including:
Allowance plan of independent directors are implemented after deliberated in the Board and approved in
Shareholders’ General Meeting. Other directors and non-staff supervisors except independent directors are received
no remuneration from the Company.
Remuneration of senior executives are deliberated and approved by the Board according to remuneration evaluation
plan together with opinions of Remuneration and Evaluation Committee.
56
CHANGHONG MEILING CO.,LTD. Annual Report 2022
The remuneration appraisal and payment for directors and senior executive of the Company for Current Year will
disclose in the Annual Report after review without objection from Remuneration & Appraisal Committee of the
Board and submit to the BOD for Current Year.
(2) Bases on which remunerations of directors, supervisors and senior management are decided
According to the company's basic salary system, combined with the industry salary level and salary orientation,
following the salary management concept of "post value reflected and performance-oriented", giving full play to
the incentive function of salary, closely combining employee compensation with the company's overall performance,
according to the company's performance management rules, the annual performance evaluation on the work of
senior management personnel is carried out, and the performance salary is cashed according to the performance
evaluation results.
(3) Actual payment of remunerations of directors, supervisors and senior management
Allowance of the independent directors are paid by the standards approved in Annual Shareholders’ General
Meeting, other director, who serves as senior executive at the same time, and non-staff supervisors except
independent directors did not received remuneration from the Company; remunerations for senior executives of the
Company are paid strictly by the unify remuneration valuation mechanism of the Company.
Directors, supervisors and senior executives of the Company has 19 in total up to 31 December 2022, actually 13
person receiving remuneration from the Company, 2 staff supervisors are received their remuneration by actual
positions (non-supervisor post); furthermore, 3 independent directors are received the allowance monthly from the
Company; the Company will pay remuneration to senior executives in line with the performance appraisal by
monthly, quarterly and annual.
During the reporting period, the Company has established the executive compensation and performance
management program for the senior management of 2022 in accordance with the main scope, the responsibilities,
the importance of the management positions of the senior management, and the compensation level of other relevant
company and position, the program includes but not limited to the company's key performance indicator (KPI) and
performance evaluation criteria, procedures and major evaluation system; the major programs of the reward and
punishment; review the performance of duties of the company's senior management and conduct the annual
performance appraisal.
2. Remuneration for directors, supervisors and senior executives in reporting period
In RMB 10,000
Total Whether
remuneration remuneration
Name Title Sex Age Post status obtained from theobtained from
Company (before related party of
taxes) the Company
Wu Dinggang Chairman Male 50 In Office 0 Ye
Zhong Ming Director, President Male 50 In Office 70.43 Yes
Yong Fengshan Director Male 54 In Office 0 Yes
Kou Huameng Director, Deputy president Male 53 In Office 43.37 No
Hu Zhaogui Director, Deputy president Male 49 In Office 150.24 No
Zhao Qilin Director Male 47 In Office 0 Yes
57
CHANGHONG MEILING CO.,LTD. Annual Report 2022
Hong yuanjia Independent director Male 47 In Office 11.90 No
Mou Wen Independent director Female 56 In Office 11.90 No
Zhao Gang Independent director Male 44 In Office 11.90 No
Shao Min Chairman of Supervisory Male 40 In Office 0 Yes
He Xintan Supervisor Male 42 In Office 0 Yes
Huang Hong Supervisor Female 52 In Office 0 Yes
Ji Ge Staff supervisor Female 41 In Office 40.84 No
Sun Hongying Staff supervisor Female 51 In Office 46.08 No
Liu Hongwei Executive deputy president Male 59 In Office 102.75 No
Huang Danian Deputy president Male 53 In Office 50.55 No
Tang Youdao Deputy president Male 52 In Office 136.50 No
CFO (person in charge of 46.19 No
Pang Haitao Male 47 In Office
finance)
Li Xia Secretary of the Board Female 42 In Office 44.44 No
Total -- -- -- -- 767.09 --
VI. Responsibility performance of directors during the reporting period
(i) The board of directors during the reporting period
Session of
Date of meeting Disclosure date Meeting resolutions
meeting
Totally 27 proposals including Report on Works of BOD for year of 2021, Annual
The 16th Report of 2021 and Its Summary and Financial Statement Report for year of 2021 are
session of March 29,2022 March 31,2022 deliberated and approved in the Meeting, for details, please refer to the "Resolution
10thBOD Notice of the 16th session of 10thBOD" (No. 2022-012) on the cninfo website (Juchao
Website (www.cninfo.com.cn)).
Totally 4 proposals including The Q1 Report of 2022, Provision for Credit Losses and
The 17th Provision for Decline in Value of Inventories are deliberated and approved in the
session of April 19,2022 April 20,2022 Meeting, for details, please refer to the "Resolution Notice of the 17th session of
10thBOD 10thBOD" (No. 2022-028) on the cninfo website (Juchao Website
(www.cninfo.com.cn)).
Totally 8 proposals including, The board of directors deliberated and passed the
proposal on providing overseas loan with onshore guarantee to overseas holding
subsidiaries, On the holding subsidiary to publicly issue shares to non-specific qualified
The 18th
investors and listing on the Beijing Stock Exchange and proposal on the company
session of May 17,2022 May 18,2022
applying for the maximum credit line of RMB 400 million from the Hefei Branch of
10thBOD
China Minsheng Bank Co., Ltd ., please refer to the "Resolution Notice of the 18th
session of 10thBOD" (No. 2022-036) on the cninfo website (Juchao Website
(www.cninfo.com.cn)).
Totally 5 proposals including Amend Some Article of the Article of Association, Amend
The 19th Some Articles of Rules of Procedure for Shareholders General Meeting are deliberated
session of June 13,2022 June 14,2022 and approved in the Meeting, for details, please refer to the "Resolution Notice of the
10thBOD 19th session of 10thBOD" (No. 2022-042) on the cninfo website (Juchao Website
(www.cninfo.com.cn)).
Totally 1 proposals including Proposal on the company and its subsidiaries to
The 20th participate in the establishment of industrial investment funds and related transactions
session of July 11,2022 July 13,2022 are deliberated and approved in the Meeting, for details, please refer to the "Resolution
10thBOD Notice of the 20th session of 10thBOD" (No. 2022-051) on the cninfo website (Juchao
Website (www.cninfo.com.cn)).
Totally 4 proposals including Proposal on Approving Holding Subsidiaries to Publicly
Issue Stocks to Unspecified Qualified Investors and Listing on the Beijing Stock Excha
The 21st nge" and "Proposal on Agreeing Holding Subsidiaries to Adjust Public Issuance of Stoc
session of August 2,2022 August 3,2022 ks to Unspecified Qualified Investors and Listing on the Beijing Stock Exchange" are d
10thBOD eliberated and approved by The Board of Directors in the Meeting, for details, please
refer to the "Resolution Notice of the 21st session of 10thBOD" (No. 2022-056) on the
cninfo website (Juchao Website (www.cninfo.com. cn)).
Totally 8 proposals including Semi-Annual Report (Full-text) of 2022 and its Summary,
The 22nd
Provision for Credit Losses and Provision for Decline in Value of Inventories are
session of August 16,2022 August 18,2022
deliberated and approved in the Meeting, for details, please refer to the "Resolution
10thBOD
Notice of the 22ndth session of 10thBOD" (No. 2022-062) on the cninfo website (Juchao
58
CHANGHONG MEILING CO.,LTD. Annual Report 2022
Website (www.cninfo.com.cn)).
Totally 1 proposal including "Proposal on Issuing to Holding Subsidiaries" is deliberated and approved by The Board of Directors in
session of September 5,2022 September 7,2022 the Meeting, please refer to the "Resolution Notice of the 23rd session of 10thBOD"
10thBOD (No. 2022-068) on the cninfo website (Juchao Website (www.cninfo.com.cn)).
Totally 1 proposal including "Proposal on the Company's Donation to the Luding Earth
The 24th quake-
session of September 7,2022 September 8,2022 stricken Area". is deliberated and approved by The Board of Directors in the Meeting,
10thBOD please refer to the "Resolution Notice of the 24th session of 10thBOD" (No. 2022-069)
on the cninfo website (Juchao Website (www.cninfo.com.cn)).
Totally 18 proposals including The Q3 Report of 2022, Provision for Credit Losses,
The 25th Provision for Decline in Value of Inventories and Disposal of Non-Current Assets are
session of October 24,2022 October 25,2022 deliberated and approved in the Meeting, for details, please refer to the "Resolution
10thBOD Notice of the 25th session of 10thBOD" (No. 2022-078) on the cninfo website (Juchao
Website (www.cninfo.com.cn)).
Totally 1 proposal including "Proposal on the Company's Appointment of the Chief Co
The 26th
mpliance Officer". is deliberated and approved by The Board of Directors in the Meetin
session of November 25,2022 November 26,2022
g, for details, please refer to the "Resolution Notice of the 26 th session of 10thBOD"
10thBOD
(No. 2022-087) on the cninfo website (Juchao Website (www.cninfo.com.cn)).
Totally 10 proposals including"Proposal on Expecting Daily Related Transactions in 20
23", "Proposal on Expecting Continued Related Transactions between the Company and
The 27th its Subsidiaries and Sichuan Changhong Group Finance Co., Ltd. and the Proposal on t
session of December 6,2022 December 7,2022 he Credit Guarantee Line Provided by Holding Subsidiaries" are deliberated and approv
10thBOD ed by The Board of Directors in the Meeting, for details, please refer to the "Resolution
Notice of the 27th session of 10thBOD" (No. 2022-087) on the cninfo website (Juchao
Website (www.cninfo.com.cn)).
Totally 1 proposals including Increase in Expected Routine Related Transactions for
The 29th
2022 are deliberated and approved in the Meeting, for details, please refer to the
session of December 16,2022 December 17,2022
"Resolution Notice of the 29th session of 10thBOD" (No. 2022-097) on the cninfo
10thBOD
website (Juchao Website (www.cninfo.com.cn)).
(ii) The attending of directors to Board meetings and shareholders general meeting
The attending of directors
Times of
Times of Board
Times of Times of Times of Absent the Meeting for attending the
meeting supposed Times of
Director present in attending by entrusted the second time in a row shareholder
to attend in the Absence
person communication presence (Y/N) general
report period
meeting
Wu Dinggang 14 2 12 0 0 N 3
Zhong Ming 14 2 12 0 0 N 4
Yong
14 0 14 0 0 N 0
Fengshan
Kou
14 2 12 0 0 N 5
Huameng
Zhao Qilin 14 1 13 0 0 N 0
Hu Zhaogui 14 1 13 0 0 N 0
Hong yuanjia 14 1 13 0 0 N 1
Mou Wen 14 2 12 0 0 N 4
Zhao Gang 14 1 13 0 0 N 1
Explanation of absent the Board Meeting for the second time in a row
During the reporting period, none of the directors failed to attend two consecutive Board Meeting in person.
(iii) Objection for relevant events from directors
Whether directors come up with objection about company’s relevant matters or not
□ Yes √ No
Directors has no objections for relevant events in reporting period
59
CHANGHONG MEILING CO.,LTD. Annual Report 2022
(iv) Other explanation about responsibility performance of directors
Whether the opinions from directors have been adopted or not
√ Yes □ No
During the reporting period, the directors of the company strictly followed the Company Law, the Securities Law,
the Listing Rules of Shenzhen Stock Exchange, and the Self-Discipline Supervision Guidelines for Listed
Companies of Shenzhen Stock Exchange No. 1 - Standardized Operation of Main Board Listed Companies" and
other laws and regulations, actively attended the company's board meetings and the company's general meeting of
shareholders, performed duties conscientiously and diligently, made prudent and scientific decisions on various
matters reviewed by the company's board meetings, and all their professional suggestions on the company’s major
decisions have been adopted .
VII. The special committees under the board during the reporting period
Specific
Number Other
circumstanc
Committ of Important comments and perform
Members Meeting content es of the
ee name meetings Date of meeting suggestions made ance of
objection (if
held duties
applicable)
A total of one proposal was The proposal was deliberated and
Not
deliberated on the Proposal passed and agreed to be submitted
March 19,2022 applicab N/A
Wu Dinggang, on the Company's to the board of directors of the
le
Zhong Ming, Development Plan in 2022. company for consideration.
Yong A total of 1 proposal was
Strategy
Fengshan, Kou deliberated on the Proposal
Committ 2
Huameng, of the Company and its The proposal was deliberated and
ee Not
Zhao Qilin, Hu subsidiaries to Participate passed and agreed to be submitted
July 8,2022 applicab N/A
Zhaogui, Zhao in the Establishment of to the board of directors of the
le
Gang Industrial Investment company for consideration.
Funds and Related
Transactions.
Two proposals were
deliberated, namely, the
Company's 2021 Financial
Accounting Statement and Not
All proposals were deliberated and
January 25,2022 Internal Control Audit applicab N/A
passed.
Schedule and the le
Company's 2021 Unaudited
Financial Accounting
Statement.
A total of 1 proposal was
deliberated, namely the
Not
First Draft of the Audit of The proposal were deliberated and
March 4,2022 applicab N/A
Audit Hong Yuanjia, the Company's Financial passed
le
Committ Mou Wen, 6 Accounting Statements in
ee Zhao Gang 2021.
Six proposals were All the proposals were deliberated
deliberated, namely the and passed, and five proposals were
Audited Financial agreed to be submitted to the Board
Accounting Report of the of Directors for deliberation,
Company in 2021, Audit namely, the Audited Financial
Not
Report on Internal Control Accounting Report of the Company
March 28,2022 applicab N/A
in 2021, Summary Report in 2021, Audit Report on Internal
le
on the Company Audit Control in 2021, the Proposal on
Work by ShineWing Renewing the Appointment of the
Certified Public Financial Report, Internal Control
Accountants in 2021, Auditing Organization and Payment
Proposal on Renewing the of Remuneration in 2022, the
60
CHANGHONG MEILING CO.,LTD. Annual Report 2022
Appointment of the Proposal on Changes of the
Financial Report, Internal Company's Accounting Policy and
Control Auditing Proposal on the Company's Forward
Organization and Payment Foreign Exchange Fund Trading
of Remuneration in 2022, Business.
Proposal on Changes of the
Company's Accounting
Policy and Proposal on the
Company's Forward
Foreign Exchange Fund
Trading Business.
A total of 1 proposal was
The proposal was deliberated and
deliberated, namely the Not
passed and agreed to be submitted
April 15,2022 Financial Statement of the applicab N/A
to the board of directors of the
Company for the First le
company for consideration.
Quarter of 2022.
A total of 1 proposal was
The proposal was deliberated and
deliberated, namely the Not
passed and agreed to be submitted
August 6,2022 Semi-annual Financial applicab N/A
to the board of directors of the
Report of the Company in le
company for consideration.
2022
A total of 1 proposal was
The proposal was deliberated and
deliberated, namely the Not
passed and agreed to be submitted
October 15,2022 Financial Statement of the applicab N/A
to the board of directors of the
Company for the Third le
company for consideration.
Quarter of 2022.
A total of 1 proposal was
deliberated, namely the
Nominati Wu Dinggang, Proposal of the Board of The proposal was deliberated and
Not
on Mou Wen, Directors of the Company passed and agreed to be submitted
1 November 23,2022 applicab N/A
Committ Hong Yuanjia, on Examining the to the board of directors of the
le
ee Zhao Gang Qualification of the Chief company for consideration.
Compliance Officer to be
Appointed.
Remuner It deliberated and passed the
It deliberated the
ation and Wu Dinggang, remuneration assessment of
remuneration assessment Not
Appraisa Zhao Gang, directors and senior management
2 March 19,2022 and payment of directors applicab N/A
l Mou Wen, personnel and agreed to submit it to
and senior management of le
Committ Hong Yuanjia the Board of Directors of the
the company in 2021.
ee company for deliberation.
VIII. Works from Supervisory Committee
Whether the Company has risks or not in reporting period that found in supervisory activity from supervisory
committee
□Yes √ No
Supervisory committee has no objection about supervision events in reporting period
IX. Staff of the Company
(i) Numbers, professional structure and education background
On-job employee in parent company at period-end (people) 4,055
On-job employee in main subsidiary at period-end(people) 10,267
Total on-job employees at period-end(people) 14,322
Current total payroll(people) 14,322
Number of retired employees with expenses paid by the parent company 93
and main subsidiary (people)
Professional structure
Types of professional category Numbers of professional category (people)
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CHANGHONG MEILING CO.,LTD. Annual Report 2022
Production staff 7,605
Salesman 3,963
Technician 1,891
Financial staff 278
Administration staff 585
Total 14,322
Education background
Type of education background Numbers (people)
High school and below 9,582
Junior college 1,972
Undergraduate 2,576
Master and above 192
Total 14,322
(ii) Remuneration policy
The Company formulated human resources and compensation policy conducive to sustainable development of
enterprise according to the provisions of relevant laws and policies promulgated by the state and to the Company's
actual situation.
The company continued to promote the performance growth index system (GPI), defined the direction of
employee performance growth and progress, effectively encouraged employees to take the initiative to find gaps
and fill shortcomings, and continuously improved their professional ability and work efficiency. At the same time,
based on the growth level of employees, it has established a remuneration mechanism that is suitable for it, and
optimized the post value evaluation and remuneration adjustment mechanism to enhance the internal fairness and
external competitiveness of the company's remuneration and strengthen the salary concept of "post value reflected
and performance-oriented". In order to promote the achievement of each unit's performance, this year, the company
will further optimize and adjust the incentive system, strengthen the quantitative embodiment of operating results
and incremental value, and design differentiated incentive schemes according to the characteristics of different
business units with consideration of system balance, so as to realize the effectiveness of positive guidance and
effectively stimulate the business vitality of each business unit.
During the reporting period, the company further optimized the position promotion evaluation and employment
mechanism, improved the position system and the promotion channels in sequence, and further stimulated the team's
vitality through the integrating system evaluation and employment, performance growth system and other
mechanisms, and matched the dynamic adjustment of remuneration; continued to promote the application of
performance management in the whole process, optimized the application of performance communication and
feedback information methods, strengthened the application of performance results in cadre promotion and
demotion, talent selection, salary adjustment and year-end evaluation, and encouraged employees to develop
together with the company.
(iii) Training plans
The company aimed at creating a learning organization, continuously optimized training and talent
development, and built talent standards and competency models of each sequence based on the company's annual
talent development and training program; built Meiling online learning system and knowledge asset management
62
CHANGHONG MEILING CO.,LTD. Annual Report 2022
system to extract and precipitate internal experience and ability; organized the implementation of internal and
external special precision training programs; carried out projects such as learning map and talent structure
optimization, and gradually formed a growth mechanism that combined training with employee growth and career
development.
1. Further develop the mechanism of selecting, educating, using and retaining reserve talents. The company
has established a clear talent standard evaluation model to complete the talent standards for management positions,
supervisor-level positions and various professional positions in all sequences; established a succession map of
talents in key positions in each sequence, and clarified the current situation of the existing talent team and the
succession system of different types of talents in the future. The company focused on optimizing the echelon
structure of the "Yongquan Plan" talent reserve, and optimized and adjusted the echelon structure of middle and
senior reserve cadres, A-class reserve successors, A-class reserve learning, B-class reserve supervisors, excellent
college students and other talents through the selection of young reserve cadres who were born after 1990 and the
regular review and evaluation of reserve talents in the library. At the same time, based on the needs of future business
development, it reserved talents appropriately in advance to realize dynamic management of talents.
2. Accurate training, to improve the training effect. Based on the needs of business development, it has built a
multi-level and multi-category talent training system. On the one hand, it improved the training enthusiasm and
professional ability of the trainees through activities such as project integrating system and industry exchange; on
the other hand, it introduced external training courses and internal course development to effectively promote the
precision training program in view of the common shortcomings of the team and shortcomings of personal ability;
According to the professional ability of key positions in the professional level, it built a learning map and defined
the map of growing professional routes; At the same time, it established the training organization guarantee system,
and built the company's classified and graded talent training system. Through career planning analysis, course
orientation promotion, node control, project review, training examination and other ways, it guided the vertical
(promotion) and horizontal (multi-skilled workers, rotation) all-round development effectively, and achieved the
training effect and talent promotion gradually.
3. Enrich the company's internal knowledge asset management system, redefine the company's intellectual
assets standards and organizational guarantee system. On the one hand, it continued to supplement and update the
teaching materials of Meiling's knowledge assets library on technology, management, manufacturing, quality, safety
and environmental protection; On the basis of "internal trainer certification system" and "benchmarking post
knowledge extraction project", optimized the professional series of live courses, internalized the company's standard
talent knowledge base and carried on the inheritance and influence; On the other hand, it carried out the learning
map project, and designed the learning map through the process, structure, finance and other sequences, so as to
closely connect the qualifications of specific positions with the learning map, and to combine the talent development
with the learning development organically, and to promote the scientific, systematic and efficient training of
professionals in each sequence position of the company.
(iv) Labor outsourcing
63
CHANGHONG MEILING CO.,LTD. Annual Report 2022
□ Applicable √ Not applicable
X. Profit distribution plan and capitalizing of common reserves plan
(i) Formulation, Implementation and Adjustment of Profit Distribution Policy Especially Cash Dividend
policy during the Reporting Period
√ Applicable □ Not applicable
During the reporting period, the company has strictly executed the profit distribution policy in accordance with
the "Articles of Association", the formulation and implementation of the company's cash dividend policy are in line
with the provisions of "Articles of Association" and the requirements of the resolutions of shareholders' meeting,
the dividends standards and proportion have been definite and clear, relevant decision-making procedures and
mechanisms have been complete, the responsibilities of independent directors have been clear and have played its
due role, minority shareholders have had the opportunities to fully express their views and aspirations, and the
legitimate interests of minority shareholders have been maintained.
During the reporting period, the company implemented the annual profit distribution plan for 2021, that is,
based on the total share capital of 1,029,923,715 shares on date of record at the time of implementing the 2021
annual equity distribution plan (including 881,733,881 shares of A shares and 148,189,834 shares of B shares), the
company distributed a cash dividend of RMB 0.5 (including tax) for every 10 shares to all shareholders, with a total
cash dividend of RMB 51,496,185.75.
Special explanation on cash dividend policy
Satisfy regulations of General Meeting or requirement of Article of Association (Y/N): Y
Well-defined and clearly dividend standards and proportion (Y/N): Y
Completed relevant decision-making process and mechanism (Y/N): Y
Independent directors perform duties completely and play a proper role (Y/N): Y
Minority shareholders have opportunity to express opinions and demands totally and their legal rights
Y
are fully protected (Y/N):
Condition and procedures are compliance and transparent while the cash bonus policy adjusted or
Y
changed (Y/N):
(ii) The Company is profitable during the reporting period and the parent company has positive profit
available for distribution to shareholders without cash dividend distribution plan proposed
□ Applicable √ Not applicable
(iii) Profit distribution plan and capitalizing of common reserves plan for the Period
√ Applicable □ Not applicable
Bonus shares for every 10-share (Share) 0
Dividends for every 10-share (RMB) (Tax included) 0.9
Shares added for every 10-share base (Share) 0
Equity base of distribution plan (Share) 1,029,923,715
Total cash dividend (RMB) (Tax included) 92,693,134.35
Cash dividend for other ways (i.e. repurchased) (RMB) 737,197.77
64
CHANGHONG MEILING CO.,LTD. Annual Report 2022
Total cash dividend (including other way) (RMB) 93,430,332.12
Profits available for distribution (RMB) 909,082,037.66
Ratio of cash dividend (including other way) in total profit
distribution
100%
Cash dividend
Taking the total share capital on the equity registration date of the company’s on December 31, 2022 as the base, distribute cash
dividends of 0.9 yuan (tax included) for every 10 shares to all shareholders, not giving bonus shares, and not converting capital
reserve in to equity.
Detail explanation on profit distribution or capitalization from capital public reserve
In 2022, the company's parent company realized a net profit of RMB 180,902,350.76 in individual statements. According to
relevant regulations, the undistributed profit at the beginning of this year is RMB 952,820,937.05, after deducting the annual profit
of RMB 51,496,185.75 in 2021 allocated in that year and drawing the statutory surplus reserve of RMB 18,090,235.08, the
accumulated undistributed profit in individual statements of the parent company at the end of 2022 is RMB 1,064,136,866.98. In
addition, in 2022, the net profit attributable to the owner of the parent company in the consolidated statement of the company was
RMB 244,538,734.49. According to the relevant regulations, the undistributed profit at the beginning of this year is RMB
734,129,724.00 in the consolidated statement, and the accumulated undistributed profit at the end of 2022 is RMB 909,082,037.66
after deducting the annual profit of RMB 51,496,185.75 in 2021 and drawing the statutory surplus reserve of RMB 18,090,235.08.
According to the relevant regulations, the company's profit distribution shall be based on the distributable profits of the parent
company, and according to the principle of distributing the accumulated undistributed profits in the consolidated statement and the
parent company statement. Therefore, the profit available for distribution in 2022 is the accumulated undistributed profit of RMB
909,082,037.66 in the consolidated statement at the end of 2022.
Pursuit to relevant rules and regulation of Article of Association, and considering the interest of shareholders and long-term
development needs of the Company, proposed recommendations:The Company distributed a cash dividend of RMB 0.9 (including
tax) for every 10 shares to all shareholders based on the total share capital of 1,029,923,715 shares on December 31, 2022, with no
bonus or conversion of reserve fund into share capital. It is expected to distribute a cash dividend of RMB 92,693,134.35. After this
distribution, it is estimated that the remaining accumulated undistributed profit of the parent company is RMB 971,443,732.63, and
the remaining undistributed profit will be carried forward to the next year for distribution.
XI. Implementation of the Company’s stock incentive plan, employee stock ownership plan or other
employee incentives
□ Applicable √ Not applicable
The Company has no equity incentive plan, employee stock ownership plans or other employee incentives.
XII. Construction and implementation of internal control system during the reporting period
(i) Construction and implementation of internal control
In accordance with the Basic Norms for Enterprise Internal Control and its supporting guidelines, and the
Information Disclosure Compilation Rules for Companies Publicly Issuing Securities No. 21 - General Provisions
65
CHANGHONG MEILING CO.,LTD. Annual Report 2022
on Annual Internal Control Evaluation Reports jointly issued by the China Securities Regulatory Commission and
the Ministry of Finance and other relevant regulations, and combined with the Company's internal control system
and internal control evaluation methods, the company organized its internal control work, effectively implemented
internal control, and continuously improved and optimized the company's internal control system so as to adapt to
the needs and changes of the internal and external environment.
The company's 2022 Annual Internal Control Self-Assessment Report fully, truly and accurately reflected the actual
situation of the company's internal control. The units, businesses and matters included in the assessment scope, as
well as high-risk areas, covered the main aspects of the company's operation and management, and the company
maintained effective internal controls in high-risk areas and in all material aspects. During the reporting period, the
company had no major defects and significant defects in internal control.
(ii) Details of major defects in IC appraisal report that found in reporting period
□Yes √ No
XIII. Management and controls on the subsidiary during reporting period
Problems
Name of Integration Follow-up
Integration plan encountered in Actions taken Resolve progress
company progress resolution plan
integration
Not applicable - - - - - -
XIV. Internal control self-assessment report or internal control audit report
(i) Appraisal Report of Internal Control
Date of evaluation report of internal control disclosed (Full-text) March 31,2023
Index of evaluation report of internal control disclosed (Full-text) Juchao Website（www.cninfo.com.cn）
The ratio of the total assets of units included in the scope of evaluation
accounting for the total assets on the company's consolidated financial statements
99.85%
The ratio of the operating income of units included in the scope of evaluation
accounting for the operating income on the company's consolidated financial 100.00%
statements
Defects Evaluation Standards
Category Financial Reports Non-financial Reports
1. Material defect: severally or jointly with other defects, will lead to Occurrence of the followings shall be
material wrong reporting in financial reports being not able to deemed as material defect, otherwise as
prevented or found or rectified in a timely manner. Occurrence of the major defect or general defect subject to
followings will be deemed as material defect: the level of influence.
Qualitative 1. inefficiency of environment control; 1. breach of national laws, regulations or
criteria 2. fraud of directors, supervisors and senior management; regulatory documents;
3. The external auditor finds material wrong reporting in current 2. procedure for making significant
financial statement, while the Company has not found such reporting decisions is not scientific;
during its operation; 3. absence of system may lead to invalid
4. The material defect identified and reported to the management fails system;
66
CHANGHONG MEILING CO.,LTD. Annual Report 2022
to be rectified in a reasonable time period; 4. Material or major defects are not likely
5. The audit committee and audit department of the Company exercise to rectify;
invalid supervision upon internal control; 5. Large negative effects on the company
6. Other defects which may affect financial statement users to make and disclosed in the form of
correct judgment. announcement;
2. Major defect: severally or jointly with other defects, will lead to 6. Other issues that materially affect the
wrong reporting in financial reports being not able to prevented or Company.
found or rectified in a timely manner which still needs attention from
the management though it doesn’t reach or exceed material defect as
described above. Occurrence of the followings will be deemed as
major defect:
(1) Financial losses caused by guaranteeing and investing in
securities and financial derivatives transactions and disposing
property right and stock right without authorization;
(2) The company's financial staff or other relevant business personnel
have unclear powers and responsibilities or job chaos, or are
suspected of being involved in economic or job-related crimes and
have been transferred to the judiciary;
(3) Punishment or severely negative impacts on the company's image
due to the bias implementation of the policy or accounting errors,
etc.;
(4) Financial losses caused by destroying, concealing, or altering the
important original evidences at will, such as invoices and checks, etc.
(5) Cash income is not entered into the account book, or public funds
are deposited in private account or "private coffer" is established by
breaking the rules.
3. General defect: other internal control related defects that do not
constitute material defects or major defect.
1. Proportion of direct property loss in
total operating income: Material defect:
1. Proportion of potential wrong reporting in total operating
wrong reporting ≧0.1%; Major defect:
income: Material defect: wrong reporting ≧0.5%; Major defect: 0.1%
0.05% ≤ wrong reporting＜0.1%; General
≤ wrong reporting＜0.5%; General defect: wrong reporting＜0.1%.
defect: wrong reporting＜0.05%.
2. Proportion of potential wrong reporting in total profit: Material
2. Proportion of direct property loss in
defect: wrong reporting ≧10%; Major defect: 5% ≤ wrong reporting
total profit: Material defect: wrong
Quantitative ＜10%; General defect: wrong reporting＜5%.
reporting ≧10%; Major defect: 5% ≤
standard 3. Proportion of potential wrong reporting in total assets: Material
wrong reporting＜10%; General defect:
defect: wrong reporting ≧0.5%; Major defect: 0.1% ≤ wrong reporting
wrong reporting＜5%.
＜0.5%; General defect: wrong reporting＜0.1%.
3. Proportion of direct property loss in
4. Proportion of potential wrong reporting in total owners’
total assets: Material defect: wrong
equity: Material defect: wrong reporting ≧0.5%; Major defect: 0.1%
reporting ≧0.2%; Major defect: 0.1% ≤
≤ wrong reporting＜0.5%; General defect: wrong reporting＜0.1%.
wrong reporting＜0.2%; General defect:
wrong reporting＜0.1%.
67
CHANGHONG MEILING CO.,LTD. Annual Report 2022
4. Proportion of direct property loss in
total owners’ equity: Material defect:
wrong reporting ≧0.2%; Major defect:
0.1% ≤ wrong reporting＜0.2%; General
defect: wrong reporting＜0.1%.
Amount of significant defects in
financial reports
0
Amount of significant defects in non-
financial reports
0
Amount of important defects in financial
reports
0
Amount of important defects in non-
financial reports
0
(ii) Auditing report of internal control
√ Applicable □ Not applicable
Deliberation section of auditing report of IC
We consider that: in all major aspects, Changhong Meiling Co., Ltd. has efficiency in financial report of internal control dated 31
December 2022 according to Basic Standards of Internal Control for Enterprise and relevant regulations.
Disclosure details of audit report of internal control Disclosed
Disclosure details of audit report of internal control March 31,2023
Disclosure date of audit report of internal control (full-text) Juchao Website（www.cninfo.com.cn）
Index of audit report of internal control (full-text) Standard unqualified
Opinion type of auditing report of IC No
Whether CPA carries out qualified opinion for audit report of internal control or not
□Yes √ No
Whether the opinions are consistent in audit report of internal control carrying out by CPA and the self-evaluation
report of the Board or not
√ Yes □ No
Whether CPA carries out qualified opinion for audit report of internal control or not
XV. The rectification of self-examination problems in the special actions on governance of listed companies
In 2021,According to the Announcement on Launching Special Actions on the Governance of Listed Companies"
(CSRC [2020] No. 69) of China Securities Regulatory Commission, the company followed the principle of seeking
truth from facts, strictly compared with the "Special Self-examination List on Governance of Listed Companies",
and carefully sorted out the existing problems. Through this self-examination, the Company believed that its
corporate governance complied with the requirements of the Company Law, the Securities Law, Shenzhen Stock
Exchange Listed Companies Self-regulation Guidelines No.1 and the Standardized Operation of Main Board Listed
Companies and other laws and regulations. The problems found in the company's self-examination and sorting out
68
CHANGHONG MEILING CO.,LTD. Annual Report 2022
and the rectifications were as follows:
(i) Subsidiary holding shares of listed companies and the rectification
1. Meiling Group, a wholly-owned subsidiary of the company, held 1,141,053 restricted shares of the Company.
The restricted shares held by Meiling Group were the consideration shares received for the share reform on behalf
of other non-tradable shareholders in the company's reform plan for non-tradable shares. In March 2016, according
to the approval of the State-owned Assets Supervision and Administration Commission of the State Council, the
49,477,513 state-owned shares (including the already held 47,823,401 shares and the unrecovered relevant rights of
the consideration of 1,654,112 shares received for the share reform on behalf of other non-tradable shareholders in
the company's reform plan for non-tradable shares) of the Company held by Hefei Xingtai Holdings Group Co.,
Ltd., the company's original shareholder, should be transferred to Industry Investment Group free of charge.
Therefore, the restricted shares of the Company held by Meiling Group should be transferred to Industry Investment
Group free of charge.
2. According to the approval of the State-owned Assets Supervision and Administration Commission of the State
Council and the regulations of relevant departments, Meiling Group should transfer the shares paid on behalf of
others and related rights held by it to Industry Investment Group at one time free of charge after recovering all the
1,654,112 shares of consideration for the share reform. At present, Meiling Group has only recovered 1,141,053
shares, and the holders of the remaining consideration shares for the share reform have been unable to get in touch
for many times and for many years, there is great uncertainty about the time when all the shares will be recovered.
However, the company still actively promotes the recovery of the shares advanced by Meiling Group, and handles
the relevant procedures for free transfer as soon as possible after all the consideration shares for the share reform
are recovered. Prior to this, the company's restricted shares held by Meiling Group would not enjoy any rights as
shareholders during the holding period, including voting rights, dividend rights, etc.
(ii) The voting system did not comply with laws and regulations and the rectifications
1. According to Article 90 of the Securities Law of the People's Republic of China (2019 Amendment), "the board
of directors, independent directors, shareholders holding more than 1% of voting shares of a listed company or the
investor protection institutions established in accordance with laws, administrative regulations or the provisions of
securities regulatory authority of the State Council may act as solicitors”, and the company should complete the
scope of in accordance with the aforementioned regulations.
2. On December 6 and December 23, 2021, the company held the thirteenth session of the tenth board of directors
and the fourth extraordinary general meeting of shareholders in 2021, it was agreed that the company would
complete the solicitation subject for voting rights in the Articles of Association and the Rules of Procedure for the
General Meeting of Shareholders (Announcement No. 2021-091, No. 2021-093, No. 2021-109), and the industrial
and commercial registration of changes has been completed.
(iii) The controlling shareholder, the actual controller and the listed company shared the trademark and the
rectifications
69
CHANGHONG MEILING CO.,LTD. Annual Report 2022
1. The company and the controlling shareholder shared trademark. Regarding the shared trademark, only the
controlling shareholder authorized its "Changhong" trademark to Changhong Meiling for free use, and there was no
such situation that Changhong Meiling authorized the "Meiling" trademark to be used by the controlling shareholder.
2. In view of the fact that Changhong Meiling and the controlling shareholder used the controlling shareholder’s
"Changhong" trademark in different product businesses, which neither caused competition or conflict with the
business of both parties, nor affected the independence of Changhong Meiling as a listed company. In future, the
company will legally and compliantly use trademarks in strict accordance with relevant laws and regulations.
70
CHANGHONG MEILING CO.,LTD. Annual Report 2022
V. Environmental & 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
1. Policies and industry standards related to environmental protection
In their daily production and operation, the Company and its subsidiaries strictly abide by the Environmental
Protection Law, Environmental Impact Assessment Law, Law on Prevention and Control of Water Pollution, Law
on the Prevention and Control of Atmospheric Pollution, Law on Prevention and Control of Environmental Pollution
by Solid Waste, Regulations on the Administration of Construction Project Environmental Protection,
Environmental Protection Regulations of Anhui Province, Regulations on Prevention and Control of Environmental
Pollution by Solid Waste in Sichuan Province, Water Pollutant Discharge Limit Standards of Guangdong Province
and other relevant laws and regulations.
During the reporting period, Zhongshan Changhong, a subsidiary of the company, carried out self-monitoring work
according to the regulations, in which refer to the Emission Control Standard for Industrial Enterprises Volatile
Organic Compounds (DB12/524-2020) for VOCs, the secondary standard of the second period in Emission Limits
of Air Pollutants (DB44/27-2001) for particulate matters and total non-methane hydrocarbons, and the secondary
standards of Emission Standard of Odor Pollutants (GB14554-93) and Emission Standard of Air Pollutants for
Industrial Kiln and Furnace (GB9078-1996) for odor concentration.
2. Environmental protection administrative license
The Company and its subsidiaries conscientiously implement the Environmental Protection Law, the
Environmental Impact Assessment Law and the Regulations on the Administration of Construction Project
Environmental Protection, and consciously abide by environmental protection laws and regulations, industry
requirements and government regulations at all levels. For new construction, renovation and expansion projects, the
Company and its subsidiaries adhere to the system of project environmental assessment and "three simultaneities",
fully implement environmental protection measures, well ensure environmental protection management in all
aspects of project planning, design, construction and operation, and make full use of advanced technology and
scientific and technological means to lower and reduce environmental pollution. It carries out environmental impact
assessment simultaneously in the feasibility study and demonstration stage of the construction project, and entrusts
the third-party professional organization to analyze the feasibility of the industrial policy, land use planning,
environmental impact and environmental protection measures of the project. The construction starts upon the
approval of the competent environmental protection department. During the construction of the project, it carefully
implements the environmental protection requirements, and builds the environmental protection facilities
simultaneously. After the completion, the environmental protection acceptance of the project is organized in time to
ensure that the project meets the acceptance criteria and meets the requirements of environmental assessment before
71
CHANGHONG MEILING CO.,LTD. Annual Report 2022
it is officially put into use. During the operation period, it carries out pollution prevention and control actively in
strict accordance with the environmental impact assessment documents of the project and the approval requirements
of the competent environmental protection department to ensure the normal operation of environmental protection
facilities.
In terms of project construction, the technical transformation project of Zhongshan Changhong, a subsidiary
of the company, has been completed in strict accordance with the implementation of the environmental impact
assessment system and the "three simultaneities" system, and the project acceptance has been completed. The
sewage discharge permit was applied on March 31, 2020 and is valid until March 30, 2023.
3.Industrial emission standard and specific conditions of pollutant emissions involved in production and
operation activities
Main Pollutan
numb Dischar
pollutan ts
Company or Main pollutant er of Distributi concentr Total ge
discharg Total
t and Way of discha on of ation of discharge beyond
subsidiary and specific e discharge
specific discharge rge discharge discharg volume the
name pollutant name standard volume
pollutan outlet outlets e certified standard
s
s s
t type enacted
The self- Not
PH built 7.2 6-9 - - exceede
d
sewage
Not
treatment
（COD） 32 90 0.088t/a 0.154t/a exceede
station Back end d
Waste will be 1个 of plant Not
water total discharge No.5 0.25 0.5 0.0007t/a - exceede
phosphorus d after d
reaching Not
Zhongshan suspended
the 4L 60 0.011t/a 0.93t/a exceede
Changhong matter d
standard
Electric
Supporti Not
Appliance VOCs 0.29 60 0.0106t/a 0.1045t/a exceede
ng
Co., Ltd d
exhaust
Not
The odor gas One for ≤2000(dimens
309 6000 Small amount exceede
concentration treatment plant ionless) d
Exhaust
Non-methane facilities 4 no.1/no.2, Not
gas
total after the two for 7.73 120 Small amount Small amount exceede
hydrocarbon treatment plant no.2 d
of high- Not
particulate
altitude ＜20 120 0.0099t/a 0.11t/a exceede
matter d
discharge
4. Treatment of pollutants
Zhongshan Changhong, a subsidiary company, treats pollutants in accordance with relevant laws and
regulations on environmental protection, and disposes of them according to disposal requirements after they reach
the relevant standards.
In terms of sewage, it adopts the system facility technology of "physico-chemical + biochemical process" for
treatment. The system was upgraded in 2015 and added the reclaimed water recycling system in 2018. In terms of
wastewater, an online monitoring system is set up to monitor the main pollutant indicators, and discharge can be
72
CHANGHONG MEILING CO.,LTD. Annual Report 2022
made only after the standard is reached. All indicators in the quarterly inspection report are lower than the emission
limits by more than 50%.
In terms of waste gas, it adopts the system facility technology of "biodegradation + negative ion purification +
activated carbon adsorption", and the system was upgraded in 2015. The waste gas treatment facilities and
production equipment are operated in linkage, with 6 daily inspections and one quarterly outsourced inspection, and
the discharge of various pollutants is far below the discharge limit.
5. Independent plan to monitor environment
The Company and its subsidiaries have established regular monitoring plan for environmental pollutants, set up
special funds for pollutants monitoring, and engaged third-party authoritative to regularly monitor the operation of
major pollution-production links and environmental protection treatment facilities in connection with the major
pollutants produced by the Company and its subsidiaries, to make sure that the Company and its subsidiaries could
achieve emission standards in a full round.
6. Emergency plan for environmental emergencies
The Company and its subsidiaries have set up related emergency plans for environmental emergencies. The
Company and its subsidiaries have determined classified warning based on the different extent and severity of
environmental impacts that may be caused by the material environmental factors, defined the responsibilities for
emergency response, regulated emergency handling procedures, established special team to handle emergencies and
organized regular rehearsal and appraisal of relevant emergency plans, so as to ensure the effectiveness of these
plans, improve their capability of emergency handling and take precautions against contingent emergencies.
7. Investment in environmental governance and protection and the relevant payment of environmental
protection tax
The company's investment in environmental protection mainly includes the investment in the construction of
environmental protection facilities, that is, the investment in purchasing and installing fixed assets such as
environmental protection facilities and equipment, as well as the operation and maintenance expenses of
environmental protection facilities, environmental protection tax, and third-party outsourcing testing.
8.Measures taken to reduce carbon emissions and their effectiveness during the reporting period
√Applicable □ Not applicable
Combining the characteristics and special requirements of carbon emissions, the company strengthens the energy
management of each production unit, improves the internal energy management and energy efficiency index
assessment and energy consumption evaluation system, continues to carry out energy measurement and evaluation,
follows the principles of system management, and establishes a complete and effective management system. During
the reporting period, the company vigorously promoted and applied the industry's advanced energy-saving
equipment and technologies, and carried out energy-saving technical transformation; carried out energy-saving
transformation for high-consumption and low-efficiency air compressors, upgrading and transformation for air
73
CHANGHONG MEILING CO.,LTD. Annual Report 2022
compressor joint control systems, energy-saving transformation for steam pipelines, research and application for
infrared heating technology, application research for air energy units, application research for air compressor waste
heat recovery and utilization, and replacement of high-efficiency and energy-saving heating tiles and other energy-
saving renovation measures, improved automation and intelligence, and combined energy management with
informatization construction, improved the production and manufacturing system through internet technology,
realized lean production management, improved production efficiency, and reduced energy waste and CO2
emissions.
9. Administrative penalties for environmental issues during the reporting period
Impact on the
The company's
Violation of the production and
Name Cause Result rectification
situation operation of listed
measures
companies
Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable
10. Other environment information that should be disclosed
According to the Environmental Information Disclosure Measures of Enterprises and Institutions, in line with the
principle of mandatory disclosure and voluntary disclosure combined, the Company and its subsidiaries have
realized the disclosure of information relating to environmental impact assessment, project acceptance, pollutants
production and discharge, solid waste management, important environmental factors, environmental objectives and
performance of construction projects.
11. Other environment related information
In order to further realize the scientific and systematic environmental protection work of the Company and its
subsidiaries, the Company and its subsidiaries have established an environmental management system in accordance
with ISO14001 standards, set up an environmental protection organization, acquired environmental protection
resources, regularly identified, updated and appraised environmental factors, compliance obligations, environmental
risks and opportunities, and regularly determined environmental objectives and management programs. Through
the implementation of management programs and continuous normal improvement, the environmental performance
of the Company and its subsidiaries has been continuously improved. Through regular internal audit and
management review, as well as the verification and examination of the third parties, the environmental management
system of the Company and its subsidiaries has been effectively controlled and fully meets the system management
standards and relevant regulations.
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
74
CHANGHONG MEILING CO.,LTD. Annual Report 2022
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, 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; the company attaches
great importance to the shareholder return mechanism.
During the reporting period, in order to thank investors for their long-term support to the company, the company
organized a "Meiling Shareholder Feedback Activity" to repay all shareholders with sincerity.
In addition, during the reporting period, the Company launched the "Anhui Investor Service Week of Shenzhen
Stock Exchange - Entering the Listed Companies", which allowed investors to enter the company, listen to their
demands, which actively expanded effective ways to improve the communication quality of the company, helped
investors better understand the company's operating performance, and effectively improved shareholders'
satisfaction.
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 attaches importance to the vital interests of employees, protects the legitimate rights and interests
of employees to the maximum extent, establishes harmonious labor relations, and strives to form a good mechanism
for the company and employees to create and share together. At the same time, the company creates a people-
oriented cultural atmosphere by providing various holidays, allowances, condolences and organizing diversified
employee activities, benchmarking personnel selection, carnivals, etc., and continuously improves employee
satisfaction.
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 customer needs, has a relatively complete product development
75
CHANGHONG MEILING CO.,LTD. Annual Report 2022
process, advanced R&D means, and develops competitive products. It pays attention to product quality, strong
quality control ability and reliable product performance, and has a refined quality management system, and has
passed the management system certifications such as ISO9001, ISO14001 and ISO45001. The company has
complete test items and strong detection ability. It has built one of the few laboratories in the industry, such as RoHS
and intelligent IoT. The company's testing center has CNAS accreditation qualification, which meets the
requirements of strict and high-level testing of products. In the domestic market, the company increases its attention
and support in terminal construction, user experience and product training to increase the sales of high-end products;
In the export market, it fully recognizes the requirements of local laws and regulations, strictly certifies products,
and fully verifies the reliability and environmental adaptability of products to ensure the reliability of products in
the target market. Its export products have covered more than 130 countries or regions. According to different types
of customers, it implements classification and system management, timely feedbacks customers' demands,
continuously improves quality service and enhances brand image; And tracks market performance by means of
customer satisfaction survey and SCR monitoring.
For the protection of consumers' rights and interests, the company has a relatively advanced closed-loop
management system for user service. In order to meet users' service needs, it gradually improves the function
construction of official channel service platforms such as 400 service hotline, brand official website, WeChat official
account and Zhihuijia APP, attaches importance to and strengthens the user interaction and experience of social
platforms such as Tik Tok, Xiaohongshu, Weibo, Bilibili and Zhihu, and understands and handles users' needs and
questions in time. In view of user demand processing, it promotes the process visualization management and user
evaluation system management of work order processing timeline. In addition, the company pays attention to
improving consumers' product guarantee service ability, and has created Meiling's exclusive characteristic guarantee
service measures, and upgraded and launched the services such as unconditional return within 180 days for Meiling
M fresh refrigerator because of dissatisfaction in preservation, and unconditional return within 180 days for Meiling
clean refrigerator because of dissatisfaction in disinfection and sterilization, so as to effectively meet users' needs
and enhance 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 its corporate social responsibility, its subsidiary,
Zhongke Meiling, will donate a total of no more than RMB 5.65 million to 11 well-known domestic universities
within 10 years to support the development of higher education; In order to help the people in the earthquake-
stricken areas in Luding, the company donated RMB 1 million to the earthquake relief work in Luding County
76
CHANGHONG MEILING CO.,LTD. Annual Report 2022
through Mianyang Charity Federation, to help the affected people tide over the difficulties and rebuild their homes,
which further enhanced the brand reputation, social image and influence of the company and its subsidiaries.
III. Consolidate and expand the achievements of poverty alleviation and rural revitalization
The company actively undertakes corporate social responsibilities, implements Xi Jinping's socialist ideology
with Chinese characteristics in the new era with positive actions, and assumes the social responsibility that an
enterprise should shoulder. During the reporting period, the company successively carried out the "Rural
Revitalization of Meiling - Excellent Products Conference of Base Agricultural Products" and the love assistance
activities of Tongxin Primary School in Tiantangzhai, Jinzhai County; donated RMB 150,000 to the People's
Government of Songdian Town, Huoqiu County, Lu'an City, Anhui Province for the collective industrial
development project of north and south four villages in Songdian Town, Huoqiu County, in order to increase
employment, expand the collective economy and help the local rural revitalization strategy. While achieving its own
benign operation and development, the company continues to make efforts to contribute to local poverty alleviation
and rural revitalization.
77
CHANGHONG MEILING CO.,LTD. Annual Report 2022
VI. Important Events
I. Implementation of commitment
78
CHANGHONG MEILING CO.,LTD. Annual Report 2022
(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
Commitment Implement
Commitment Type/content Date Term
party ation
1. The acquirer shall not engage in refrigerator business or activity which Strictly
competes or will compete with business of Meiling Electrical Appliances, or Valid for long term implemente
that which has interest conflict with Meiling Electrical Appliances. d
About committed
2. The acquirer promises to apply shareholders’ right on a legal and reasonable Strictly
Sichuan and promised in
Commitments manner and shall not take any action to limit or affect the normal operation of Valid for long term implemente
Changhong order to prevent
made in Meiling Electric. d
Electric Co., horizontal
acquisition 3. For any opportunity to engage in competing business, the acquirer will 2007-6-12
Ltd.(hereinafter, competition in the
report or equity advise Meiling Electric in written for engaging such business or not. If Meiling
the “Sichuan Acquisition
change report Electrical Appliances gives no clear written reply as to whether engaging the Strictly
Changhong”) Report of Hefei
competing business or not within 20 days after receipt of the aforesaid letter, it Valid for long term implemente
Meiling Co., Ltd.
shall be deemed that it will not engage in such business. The acquirer will only d
engage in non-competing business provided that Meiling Electric confirms not
to or is deemed to not engage in such non-competing business.
1. It will not engage in such business or activity that competes with or has
Commitment interest conflict with that of Meiling Electric except for the action taken for
Commitment regarding to sake of Meiling Electric as required by Meiling Electrical Appliances.
Strictly
made during Sichuan reducing and 2. The Company promises to apply shareholders’ right on a legal and
2010-6-24 Valid for long term implemente
the non-public Changhong preventing reasonable manner and shall not take any action to limit or affect the normal
d
offer of 2010 competition with operation of Meiling Electric
Meiling Electric 3. In case that Meiling Electric expects, on the basis of its existing business, to
expand its operation scope into the business which the Company has already
79
CHANGHONG MEILING CO.,LTD. Annual Report 2022
operated, the Company agrees to grant priority acquisition right to Meiling
Electric regarding such business if the same conditions are met, provided that
the Company is still the controlling shareholder or actual controller of Meiling
Electric
1. Measures will be adopted to prevent continued related transaction with
Meiling Electric: as to the related transaction that can not be prevented, it will
Commitment sign related transaction agreement with Meiling Electric under the market
regarding to principles of “equally paid and mutual benefit”, and fairly determined the
reducing and transaction price according to the market prevailing standards. Strictly
standardizing 2. Perform the necessary obligations to make related directors and related 2010-6-24 Valid for long term implemente
related transaction shareholder abstain from voting according to relevant regulation, and observe d
with Meiling legal procedure for approving related transaction and information disclosure
Electric obligations.
3. Promise not to hurt legal interests of Meiling Electric and other shareholders
through related transaction.
Strictly
Commit to authorized Changhong Air-conditioner and Zhongshan Changhong use “Changhong”
2010-11-6 Valid for long term implemente
trademark and relevant patents for free.
d
1. Commit to disclose periodic reports on a truthful, accurate, complete, fair and prompt manner, to
disclose all the information that have important influences over investors, to accept supervision
under the CSRC and Shenzhen Stock Exchange.
2. Commit to make public clarification in respect of such information that is released from any
public media and may result in misleading influences on stock price once the Company is aware of Strictly
The Company such information. 2011-1-7 Valid for long term implemente
3. The directors, supervisors, senior management and core technicians of the Company will accept d
opinions and criticism from the social public, and they will not trade the Company’s securities,
directly or indirectly, with any inside information and other illegal methods. The Company
promises that the documents submitted to Shenzhen Stock Exchange exist no false statement or
material omission, and no relevant information will be disclosed during the application for listing
80
CHANGHONG MEILING CO.,LTD. Annual Report 2022
without prior content from Shenzhen Stock Exchange.
1. Since the property transfer didn’t involve the buildings and land currently used by Changhong Strictly
Air-conditioner, Sichuan Changhong commits, upon the completion of equity transfer, to continue Valid for long term implemente
to lease such assets to Changhong Air-conditioner at market price. d
Commitment
2. After completion of this property transfer, Sichuan Changhong commits to manage to prevent
made in
Sichuan new related transaction with Meiling Electric. For those which can not be prevented, Sichuan
transfer of air 2009-12-10
Changhong Changhong commits to determine the transaction price based on market accepted methods, so as to Strictly
conditioning
ensure fairness of related transaction and protection of the interest of Meiling Electric Valid for long term implemente
assets property
3. Sichuan Changhong commits that it will not engage in air conditioning and refrigerator business d
or activity which competes or will compete with business of Meiling Electric, or that which has
interest conflict with Meiling Electric
Sichuan 1. Based on market conditions and as allowed by laws and rules, multiple measures were adopted
Changhong adequately to increase shareholding of Meiling Electric, so as to demonstrate its firm confidence on
Commitments Electric Co., the PRC economy and Meiling Electric with its actual actions, maintain sound development of
Strictly
of not to Ltd.and persons capital market and promote recovery of healthy market
2015-7-9 Valid for long term implemente
reducing the acting in concert
d
shares CHANGHONG 2. Continued to support operation and development of listed company as always and promoted the
(HK) TRADING achievement of Meiling Electric. It is committed to bringing steady and real return to investors.
LIMITED
1. I hereby undertake not to deliver interests to other entities or individuals
without consideration or at unfair conditions, nor to prejudice the Company’s
Commitment on
interests by other means. Till the completion
compensation of
Commitment of projects invested
Directors and immediate 2. I hereby undertake to restrain my role related consumption behaviors.
made during with the proceeds Implementi
senior executives dilution of return 2016-2-23
the non-public 3. I hereby undertake not to conduct any investment and consumption which is from this non- ng
of the Company arising from non-
offer in 2016 not related to performance of duties with utilization of any company assets. public issuance of
public issuance of
4. I hereby undertake that the remuneration system determined by the board of shares
shares
directors or the remuneration and examination committee be linked to
implementation of the compensation of return measures.
81
CHANGHONG MEILING CO.,LTD. Annual Report 2022
5. In case that the Company adopts share based incentive plan in future, I
hereby undertake that the exercise conditions of the incentive plan to be
announced by the Company be linked to implementation of the compensation
of return measures.
6. For the period from the date of this commitment to the date of completion of
this non-public issuance of shares, if the CSRC makes other new regulatory
requirements on compensation of return measures and the commitment thereof,
and in case that the above commitments cannot satisfy these new requirements
from the CSRC, I hereby undertake to issue supplementary commitment in
compliance with the latest CSRC requirements.
7. As one of the principals responsible for compensation of return measures, I,
in case of break of the above commitments or refuse to perform the above
commitments, agree to receive relevant punishment or to adopt relevant
administration measures according to the systems, rules and regulations of the
CSRC and Shenzhen Stock Exchange.
1. Promise to truly, accurately, completely, fairly and timely publish periodic reports, disclose all
information that has significant impacts on the investors, and accept the supervision and
management of China Securities Regulatory Commission and the Shenzhen Stock Exchange.
Strictly
2. Make commitments that the Company will publicly clarify in time after knowing any information
The Company 2016-10-12 Valid for long term implemente
on any public communications media that may cause misleading influence on the stock price
d
3. The Company’s directors, supervisors and senior executives will listen carefully to the opinions
and criticisms of the public and never use any acquired inside information and other improper
means to directly or indirectly engage in the trading activities of the Company's stock.
Perform the commitment promptly or not √ Yes □ No
If the commitment is overdue and has not
been fulfilled, the specific reasons for
Not applicable
incomplete performance and the work plan
for next step shall be explained in detail
82
CHANGHONG MEILING CO.,LTD. Annual Report 2022
Note: The fulfilled commitments in the form will not be disclosed in the next periodic report.
(ii) Concerning assets or project of the Company, which has profit forecast, and reporting period still in
forecasting period, explain reasons of reaching the original profit forecast
□ Applicable √ Not applicable
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.
Disclosure date for specific approval opinion on fund occupation from CPA: 31 March 2023
Disclosure index for specific approval opinion on fund occupation from CPA: Juchao website: Juchao Website
(www.cninfo.com.cn)-- Specific Explanation on Non-operational fund occupation and its related capital
transactions for year of 2021 of Changhong Meiling Co., Ltd.
III. External guarantee out of the regulations
□ Applicable √ Not applicable
No external guarantee out of the regulations occurred in the period.
IV. Statement on the latest “modified audit report” by BOD
□ Applicable √ Not applicable
V. Explanation from Board of Directors, Supervisory Committee and Independent Directors (if applicable)
for “Qualified Opinion” that issued by CPA
□ Applicable √ Not applicable
VI. Explanation of the changes in accounting polices, accounting estimates or correction of significant
accounting errors compared with the financial report of the previous year
√ Applicable □ Not applicable
Found more details in 40. Change of major accounting policy and estimation under IV. Major accounting policy
and estimation carried in the Section XII. Financial Report
VII. Compare with last year’s financial report; explain changes in consolidation statement’s scope
√ Applicable □ Not applicable
The consolidated financial statements of the Company include 24 subsidiaries, including Sichuan Changhong Air
Conditioner Co., Ltd., Zhongshan Changhong Electric Appliance Co., Ltd., and Zhongke Meiling Cryogenic
Technology Co., Ltd. Compared to the previous year, during the reporting period, two subsidiaries included in the
83
CHANGHONG MEILING CO.,LTD. Annual Report 2022
consolidated statements were cancelled, namely, Meiling Cady Washing Machine Co., Ltd. and Jinan Xiangyou
Electric Appliance Marketing Co., Ltd. Due to the merger, the subsidiary Zhengzhou Meiling Electric Appliance
Marketing Co., Ltd. was reduced.
More details can be seen in the report “VII. Changes in the scope of the merger” and “VIII. Equity in other entities”
of “Section X Financial Report”
VIII. Appointment and non-reappointment (dismissal) of CPA
(i)CPAs currently engaged
Name of domestic accounting firm Shine Wing Certified Public Accountants(LLP)
Remuneration for domestic accounting firm ( RMB 10,000) 138
Continuous life of auditing service for domestic accounting firm 14 years
Name of domestic CPA Wang Xiaodong, Tu Xiaofeng
Continuous life of auditing service for domestic CPA Wang Xiaodong( 1 year), Tu Xiaofeng (1 year)
Name of foreign accounting firm (if applicable) N/A
Remuneration for foreign accounting firm (RMB 10,000) (if
N/A
applicable)
Continuous life of auditing service for foreign accounting firm (if
N/A
applicable)
Name of foreign CPA (if applicable) N/A
Continuous life of auditing service for foreign CPA (if applicable) -
(ii) Re-appointed accounting firms in this period
□Yes √ No
(iii) Appointment of internal control auditing accounting firm, financial consultant or sponsor
√ Applicable □ Not applicable
In reporting period, Shine Wing Certified Public Accountants (LLP) was appointed as audit institute of internal
control for the Company, auditing charge for internal control amounting as 270,000 yuan.
IX. Particular about delisting after annual report disclosed
□ Applicable √ Not applicable
X. Bankruptcy reorganization
□ Applicable √ Not applicable
XI. Material lawsuits and arbitration of the Company
√Applicable □Not applicable
Amount Wheth Litigat Litigation( Implemen Disclos
involved (Ten er to ion(ar arbitration tation of Disclosure
Basic situation of litigation(arbitration)
thousand form bitrati )trial litigation( date
ure
yuan) estima on)pro results and arbitration index
84
CHANGHONG MEILING CO.,LTD. Annual Report 2022
ted gress impact )judgment
liabilit s
ies
Zhiyijia, an affiliated enterprise of the company, signed a sales
contract with the defendant, Tianjin Pengsheng Logistics Co.,
Ltd. (hereinafter referred to as "Tianjin Pengsheng"). The
above contract stipulated that the order confirmation, shipment,
reconciliation and settlement would be handled through the
ECP platform of Gome Electrical Appliances Co., Ltd.
(hereinafter referred to as "Gome Electrical Appliances"). After
the contract was signed, Zhiyijia, the plaintiff, supplied the
goods to Tianjin Pengsheng, the defendant as agreed, but
Tianjin Pengsheng, the defendant, failed to fulfill the payment
obligation to Zhiyijia as agreed. As of November 30, 2022,
according to the data of Gome's ECP platform, the business
expenses payable by Zhiyijia, the newly-increased return
amount, etc., Tianjin Pengsheng still owed Zhiyijia a payment
of RMB 96,174,308.42. Based on this, Zhiyijia, the plaintiff
brought a lawsuit against Tianjin Pengsheng, the defendant to
the People's Court of Mianyang High-tech Industrial
Development Zone. The defendant Gome is an associated
shareholder of Tianjin Pengsheng, and the defendants Dong
Xiaohong and Rong Duo are the executive director and
supervisor of Tianjin Pengsheng respectively. According to the
Juchao
provisions of relevant laws and regulations, Zhiyijia claims that
Pre- (www.c
the aforementioned defendants should be jointly and severally
litigati No trial No trial December ninfo.co
liable for the above debts, and requests the court to order 9,617.43 No
on result yet result yet 24,2022 m.cn)(2
Tianjin Pengsheng to immediately pay the plaintiff RMB
mediat 022-
96,174,308.42 and the corresponding liquidated damages for
ion 101)
overdue payment, and bear the related litigation costs and
property preservation guarantee fees.
The Company's shareholding in Zhiyijia is 50%, and the
products are sold through Zhiyijia's smart trading platform. The
customers, channels and sales transactions corresponding to the
products sold are controlled and docked by the company itself,
and the external transaction object is Zhiyijia, and related
transactions are formed between the Company and Zhiyijia. In
terms of payment settlement, the Company and Zhiyijia follow
the principle of "external customer account period is Zhiyijia's
account period to the Company, and external customer payment
is Zhiyijia's payment to the Company, which is not allowed to
be remained or transited at Zhiyijia". The amounts involved in
this case are all accounts receivable and liquidated damages for
overdue payment caused by the Company's sales through the
smart trading platform of Zhiyijia, but the subject of the
agreement is Zhiyijia, and this lawsuit will be filed by Zhiyijia.
The Company and its affiliated enterprise Zhiyijia will claim
their legitimate rights and interests according to law and
actively take relevant measures to safeguard the legitimate
rights and interests of the Company, Zhiyijia and the investors.
Accumulated amount of other litigation that does not meet the
6,474.19 No - - - - -
disclosure standard of major litigation
XII. Penalty and rectification
□Applicable√Not applicable
During the reporting period, the Company had no Penalty and rectification.
85
CHANGHONG MEILING CO.,LTD. Annual Report 2022
XIII. 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.
XIV. Major related party transaction
(i) Related party transaction with routine operation concerned
√ Applicable □ Not applicable
86
CHANGHONG MEILING CO.,LTD. Annual Report 2022
Whether
Related Proporti Availa
Related Trading limit over the Clearing
Type of transaction on in ble
Seri Content of related Pricing transaction approved (in approve form for
Related party Relationship related price (in 10 similar similar Date of disclosure Index of disclosure
al transaction principle amount (in 10 10 thousand d limited related
transaction thousand transacti market
thousand Yuan) Yuan) or not transaction
Yuan) ons (%) price
(Y/N)
Sichuan Juchao Website
Pressure regulator,
Spot （www.cninfo.com.cn）
Changhong Controlling Commodity integrated circuit, December 7, 2021,
Marketin exchange, No.:2021-091,2021-
1 transistors, steel 33,985.13 33,985.13 2.14% 65,000.00 No - December 24,2021,
Bank 092,2021-094,2021-
plate, plastic parts, g price
Electric Co., shareholder purchased
December 17,2022
acceptance 109,2022-097,2022-
Ltd. etc
098,2022-99.
Other
enterprise
control
Changhong Juchao Website
under the Spot （www.cninfo.com.cn）
Huayi Commodity December 7, 2021,
same Compressor Marketin exchange, No.;2021-091,2021-
2 45,173.47 45,173.47 2.85% 48,000.00 No - December 24,2021,
Compressor purchased g price Bank 092,2021-094,2021-109、
controlling December 17,2022
acceptance 2022-097,2022-098,2022-
Co., Ltd.
shareholder 99.
and ultimate
controller
Other
enterprise
control
Sichuan Juchao Website
under the Components, Spot （www.cninfo.com.cn）
Changhong Commodity December 7, 2021,
same plastic parts and Marketin exchange, No.:2021-091,2021-
3 80,947.69 80,947.69 5.10% 100,000.00 No - December 24,2021,
Mold Plastic purchased lining accessories g price Bank 092,2021-094,2021-
controlling December 17,2022
etc. acceptance 109,2022-097,2022-
Tech. Co., Ltd.
shareholder 098,2022-99.
and ultimate
controller
Other Spot Juchao Website
Sichuan Base plate December 7, 2021,
enterprise Commodity Marketin exchange, （www.cninfo.com.cn）
4 assembly, black 45,767.42 45,767.42 2.88% 52,000.00 No - December 24,2021,
Changhong control purchased plate, bracket etc. g price Bank No.:2021-091,2021-
December 17,2022
under the acceptance 092,2021-094,2021-
87
CHANGHONG MEILING CO.,LTD. Annual Report 2022
Jijia Fine Co., same 109,2022-097,2022-
controlling 098,2022-99.
Ltd.
shareholder
and ultimate
controller
Other
Sichuan enterprise
control Juchao Website
Changhong （www.cninfo.com.cn）
under the Packing boxes, December 7, 2021,
Package Commodity Marketin No Bank No.:2021-091,2021-
5 same foam, fixed 13,066.04 13,066.04 0.82% 18,000.00 - December 24,2021,
purchased support block etc. g price acceptance December 17,2022 092,2021-094,2021-
Printing Co., controlling 109,2022-097,2022-
Ltd. shareholder 098,2022-99.
and ultimate
controller
Other
Sichuan enterprise
control Printed board Juchao Website
Changhong （www.cninfo.com.cn）
under the machine insertion December 7, 2021,
Precision Commodity Marketin No Bank No.:2021-091,2021-
6 same 2,570.75 2,570.75 0.16% 3,000.00 - December 24,2021,
purchased machine paste g price acceptance 092,2021-094,2021-
Electronics controlling December 17,2022
109,2022-097,2022-
assembly
Tech. Co., Ltd. shareholder 098,2022-99.
and ultimate
controller
Other
enterprise
control Juchao Website
Sichuan （www.cninfo.com.cn）
under the December 7, 2021,
Changhong Commodity Marketin NO Cash No.:2021-091,2021-
7 same Food 1.17 1.17 0.00% 5,000.00 - December 24,2021,
International purchased g price settlement December 17,2022 092,2021-094,2021-
controlling 109,2022-097,2022-
Hotel Co., Ltd.
shareholder 098,2022-99.
and ultimate
controller
Guangdong Other Juchao Website
enterprise Spot （www.cninfo.com.cn）
Changhong December 7, 2021,
control Commodity Foam and carton Marketin exchange, No.:2021-091,2021-
8 417.80 417.80 0.03% 10,000.00 No - December 24,2021,
Electronics under the purchased g price Bank 092,2021-094,2021-
December 17,2022
same acceptance 109,2022-097,2022-
Co., Ltd.
098,2022-99.
controlling
88
CHANGHONG MEILING CO.,LTD. Annual Report 2022
shareholder
and ultimate
controller
Other
enterprise
Sichuan control Juchao Website
Changhong under the （www.cninfo.com.cn）
December 7, 2021,
Intelligence Commodity Marketin NO Cash No.:2021-091,2021-
9 same Circuit card 1.62 1.62 0.00% 5,000.00 - December 24,2021,
Manufacturing purchased g price settlement 092,2021-094,2021-
controlling December 17,2022
Technology 109,2022-097,2022-
Co., Ltd. shareholder 098,2022-99.
and ultimate
controller
Other
enterprise
Hefei control Juchao Website
under the （www.cninfo.com.cn）
Changhong December 7, 2021,
Commodity Inverter integrated Marketin No Bank No.:2021-091,2021-
10 same 394.74 394.74 0.02% 10,000.00 - December 24,2021,
Industrial Co., purchased board g price acceptance 092,2021-094,2021-
controlling December 17,2022
109,2022-097,2022-
Ltd. shareholder 098,2022-99.
and ultimate
controller
Other
Sichuan enterprise
control Juchao Website
Changhong （www.cninfo.com.cn）
under the December 7, 2021,
New Energy same Commodity Batteries Marketin No Cash No.:2021-091,2021-
11 4.31 4.31 0.00% 5,000.00 - December 24,2021,
purchased g price settlement December 17,2022 092,2021-094,2021-
Technology controlling 109,2022-097,2022-
Co., Ltd. shareholder 098,2022-99.
and ultimate
controller
Other
Sichuan
enterprise Juchao Website
Zhiyijia control （www.cninfo.com.cn）
December 7, 2021,
Network under the Commodity Air conditioner, Marketin No Cash No.:2021-091,2021-
12 530.29 530.29 0.03% 10,000.00 - December 24,2021,
same purchased LCD TV g price settlement December 17,2022 092,2021-094,2021-
Technology 109,2022-097,2022-
controlling
Co., Ltd. 098,2022-99.
shareholder
and ultimate
89
CHANGHONG MEILING CO.,LTD. Annual Report 2022
controller
Other
Changhong enterprise
control Juchao Website
International （www.cninfo.com.cn）
under the December 7, 2021,
Holdings Commodity Television Marketin No Cash No.:2021-091,2021-
13 same 510.85 510.85 0.03% 8,000.00 - December 24,2021,
purchased g price settlement December 17,2022 092,2021-094,2021-
(Hong Kong) controlling 109,2022-097,2022-
Co., Ltd. shareholder 098,2022-99.
and ultimate
controller
Other
enterprise
Sichuan control Juchao Website
Changhong under the （www.cninfo.com.cn）
December 7, 2021,
Commodity Marketin No Bank No.:2021-091,2021-
14 Device same printed board 768.89 768.89 0.05% 10,000.00 - December 24,2021,
purchased g price acceptance 092,2021-094,2021-
Technology controlling December 17,2022
109,2022-097,2022-
Co., Ltd. shareholder 098,2022-99.
and ultimate
controller
Other
Sichuan enterprise
Remote controls, Juchao Website
control
Changhong switching Spot （www.cninfo.com.cn）
under the December 7, 2021,
Electronic Commodity transformers, Marketin No exchange, No.:2021-091,2021-
15 same 2,546.79 2,546.79 0.16% 3,000.00 - December 24,2021,
purchased printed boards, g price Bank December 17,2022 092,2021-094,2021-
Products Co., controlling 109,2022-097,2022-
electronic acceptance
Ltd. shareholder 098,2022-99.
components, etc.
and ultimate
controller
Other
enterprise
control Juchao Website
Sichuan under the （www.cninfo.com.cn）
December 7, 2021,
Jiahong Commodity Marketin No Cash No.:2021-091,2021-
16 same foodstuff 8.25 8.25 0.00% 5,000.00 - December 24,2021,
Industrial Co., purchased g price settlement 092,2021-094,2021-
controlling December 17,2022
Ltd 109,2022-097,2022-
shareholder 098,2022-99.
and ultimate
controller
90
CHANGHONG MEILING CO.,LTD. Annual Report 2022
Other
enterprise
Sichuan Ailian control Juchao Website
Internet access Spot （www.cninfo.com.cn）
Science & under the December 7, 2021,
Commodity modules, Marketin No exchange, No.:2021-091,2021-
17 same 913.94 913.94 0.06% 5,000.00 - December 24,2021,
Technology purchased electronic g price Bank 092,2021-094,2021-
controlling December 17,2022
components, etc acceptance 109,2022-097,2022-
Co., Ltd. shareholder 098,2022-99.
and ultimate
controller
Other
Sichuan enterprise
control Juchao Website
Aichuang Spot （www.cninfo.com.cn）
under the December 7, 2021,
Science & same Commodity Inverter integrated Marketin No exchange, No.:2021-091,2021-
18 11,551.33 11,551.33 0.73% 13,000.00 - December 24,2021,
purchased board g price Bank 092,2021-094,2021-
Technology controlling December 17,2022
acceptance 109,2022-097,2022-
Co., Ltd. shareholder 098,2022-99.
and ultimate
controller
Other
enterprise Juchao Website
Sichuan control
（www.cninfo.com.cn）
Service Exp. under the December 7, 2021,
Commodity Marketin No Cash No.:2021-091,2021-
19 Appliance same Filter element, etc 0.12 0.12 0.00% 10,000.00 - December 24,2021,
purchased g price settlement 092,2021-094,2021-
Service Chain controlling December 17,2022
109,2022-097,2022-
Co., Ltd. shareholder
098,2022-99.
and ultimate
controller
Other
enterprise
control Juchao Website
Spot （www.cninfo.com.cn）
Sichuan Aoku under the December 7, 2021,
Commodity Marketin No exchange, No.:2021-091,2021-
20 Technology same Power board 764.15 764.15 0.05% 5,000.00 - December 24,2021,
purchased g price Bank December 17,2022 092,2021-094,2021-
Co., Ltd. controlling 109,2022-097,2022-
acceptance
shareholder 098,2022-99.
and ultimate
controller
Sichuan Controlling Shuttle December 7, 2021, Juchao Website
Accept labor Marketin No Cash
21 shareholder transportation fee, 195.45 195.45 0.12% 5,000.00 - December 24,2021, （www.cninfo.com.cn）
Changhong service g price settlement December 17,2022
and ultimate training fee No.:2021-091,2021-
91
CHANGHONG MEILING CO.,LTD. Annual Report 2022
Electronics controller 092,2021-094,2021-
109,2022-097,2022-
Holding
098,2022-99.
Group Co.,
Ltd.
Sichuan Software usage Juchao Website
fee, information （www.cninfo.com.cn）
Changhong December 7, 2021,
Controlling Accept labor Marketin No Cash No.:2021-091,2021-
22 consultation fee, 488.25 488.25 0.29% 6,000.00 - December 24,2021,
Electric Co., shareholder service g price settlement 092,2021-094,2021-
inspection and December 17,2022
Ltd. 109,2022-097,2022-
certification fee 098,2022-99.
Other
Sichuan enterprise
control Transportation Juchao Website
Changhong costs, storage and （www.cninfo.com.cn）
under the December 7, 2021,
Minsheng Accept labor handling charges, Marketin No Cash No.:2021-091,2021-
23 same 61,657.16 61,657.16 37.06% 75,000.00 - December 24,2021,
service freight and g price settlement 092,2021-094,2021-
Logistics Co., controlling December 17,2022
miscellaneous 109,2022-097,2022-
Ltd. shareholder charges etc. 098,2022-99.
and ultimate
controller
Other
enterprise
Sichuan control Juchao Website
Spot （www.cninfo.com.cn）
Changhong under the December 7, 2021,
Accept labor commission Marketin No exchange, No.:2021-091,2021-
24 same 2,199.65 2,199.65 1.32% 6,000.00 - December 24,2021,
Mold Plastic service processing fee g price Bank December 17,2022 092,2021-094,2021-
controlling 109,2022-097,2022-
Tech. Co., Ltd. shareholder acceptance
098,2022-99.
and ultimate
controller
Other
Sichuan enterprise
control Three packages, Juchao Website
Service Exp. （www.cninfo.com.cn）
under the equipment December 7, 2021,
Appliance Accept labor Marketin No Cash No.:2021-091,2021-
25 same repair,miscellaneo 30,020.77 30,020.77 18.05% 32,000.00 - December 24,2021,
service g price settlement 092,2021-094,2021-
Service Chain controlling us fees, December 17,2022
109,2022-097,2022-
Co., Ltd. shareholder installation fee etc. 098,2022-99.
and ultimate
controller
92
CHANGHONG MEILING CO.,LTD. Annual Report 2022
Other
enterprise Software usage
Sichuan control Juchao Website
fee, service （www.cninfo.com.cn）
Hongxin under the December 7, 2021,
Accept labor supporting fee and Marketin No Cash No.:2021-091,2021-
26 same 1,086.77 1,086.77 0.65% 6,000.00 - December 24,2021,
Software Co., service g price settlement December 17,2022 092,2021-094,2021-
controlling information 109,2022-097,2022-
Ltd. shareholder service fee 098,2022-99.
and ultimate
controller
Other
enterprise
Guangdong control Juchao Website
under the （www.cninfo.com.cn）
Changhong Service support December 7, 2021,
Accept labor Marketin No Cash No.:2021-091,2021-
27 same fee, network 122.35 122.35 0.07% 6,000.00 - December 24,2021,
Electronics service g price settlement 092,2021-094,2021-
controlling service fee etc. December 17,2022
Co., Ltd. 109,2022-097,2022-
shareholder 098,2022-99.
and ultimate
controller
Other
enterprise
Sichuan control Juchao Website
under the （www.cninfo.com.cn）
Jiahong Meals, property December 7, 2021,
Accept labor Marketin No Cash No.:2021-091,2021-
28 same management fees 742.16 742.16 0.45% 5,000.00 - December 24,2021,
Industrial Co., service etc. g price settlement December 17,2022 092,2021-094,2021-
controlling 109,2022-097,2022-
Ltd. shareholder 098,2022-99.
and ultimate
controller
Other
enterprise
Sichuan control Juchao Website
under the （www.cninfo.com.cn）
Changhong December 7, 2021,
Accept labor Meetings fee, Marketin No Cash No.:2021-091,2021-
29 same 35.19 35.19 0.02% 5,000.00 - December 24,2021,
International service accommodation g price settlement 092,2021-094,2021-
controlling December 17,2022
Hotel Co., Ltd. shareholder 109,2022-097,2022-
098,2022-99.
and ultimate
controller
93
CHANGHONG MEILING CO.,LTD. Annual Report 2022
Other
Sichuan enterprise Dormitory facility
control Juchao Website
Changhong and equipment （www.cninfo.com.cn）
under the December 7, 2021,
Property Accept labor service fees, Marketin No Cash No.:2021-091,2021-
30 same 11.45 11.45 0.01% 5,000.00 - December 24,2021,
service g price settlement December 17,2022 092,2021-094,2021-
Services Co., controlling property 109,2022-097,2022-
Ltd. shareholder management fees 098,2022-99.
and ultimate
controller
Other
Sichuan enterprise
control Juchao Website
Zhiyijia （www.cninfo.com.cn）
under the Design service fee December 7, 2021,
Network Accept labor Marketin No Cash No.:2021-091,2021-
31 same and platform 15.52 15.52 0.01% 6,000.00 - December 24,2021,
service g price settlement 092,2021-094,2021-
Technology controlling usage fee December 17,2022
109,2022-097,2022-
Co., Ltd. shareholder 098,2022-99.
and ultimate
controller
Other
enterprise
control Juchao Website
Sichuan
under the （www.cninfo.com.cn）
Changhong December 7, 2021,
Accept labor Marketin No Cash No.:2021-091,2021-
32 Network same Network service 2.49 2.49 0.00% 6,000.00 - December 24,2021,
Technology service g price settlement December 17,2022 092,2021-094,2021-
controlling 109,2022-097,2022-
Co., Ltd. shareholder 098,2022-99.
and ultimate
controller
Other
Sichuan
enterprise
Changhong control Juchao Website
under the （www.cninfo.com.cn）
Intelligent December 7, 2021,
Accept labor test modification Marketin N Bank No.:2021-091,2021-
33 same 7.31 7.31 0.00% 5,000.00 - December 24,2021,
Manufacturing service fee g price acceptance 092,2021-094,2021-
controlling December 17,2022
Technology 109,2022-097,2022-
shareholder 098,2022-99.
Co., Ltd. and ultimate
controller
Sichuan Other N December 7, 2021, Juchao Website
34 Accept labor commission Marketin 1,067.19 1,067.19 0.64% 6,000.00 Bank -
Changhong enterprise December 24,2021, （www.cninfo.com.cn）
94
CHANGHONG MEILING CO.,LTD. Annual Report 2022
Jijia Fine Co., control service processing fee g price acceptance December 17,2022 No.:2021-091,2021-
Ltd. under the 092,2021-094,2021-
109,2022-097,2022-
same
098,2022-99.
controlling
shareholder
and ultimate
controller
Other
enterprise
Sichuan Juchao Website
Changhong control
under the （www.cninfo.com.cn）
Gerun December 7, 2021,
Accept labor Environmental Marketin No Cash No.:2021-091,2021-
35 Environmental same 5.97 5.97 0.00% 5,000.00 - December 24,2021,
service protection service g price settlement 092,2021-094,2021-
protection controlling December 17,2022
109,2022-097,2022-
Technology shareholder 098,2022-99.
Co., Ltd.
and ultimate
controller
Other
enterprise
Juchao Website
Sichuan control
（www.cninfo.com.cn）
Aichuang under the Labor dispatch December 7, 2021,
Accept labor Marketin No Cash No.:2021-091,2021-
36 Science & same fee, R&D test 106.98 106.98 0.06% 5,000.00 - December 24,2021,
service g price settlement 092,2021-094,2021-
Technology controlling fees December 17,2022
Co., Ltd. shareholder 109,2022-097,2022-
and ultimate 098,2022-99.
controller
Other
enterprise Technology
control development Juchao Website
Sichuan （www.cninfo.com.cn）
under the service fee, December 7, 2021,
Qiruike Accept labor Marketin No Cash No.:2021-091,2021-
37 same instrument repair 852.55 852.55 0.51% 5,000.00 - December 24,2021,
Technology service g price settlement December 17,2022 092,2021-094,2021-
controlling fee, inspection and 109,2022-097,2022-
Co., Ltd.
shareholder certification fee, 098,2022-99.
and ultimate etc.
controller
Sichuan Other
Juchao Website
Changhong enterprise December 7, 2021,
Accept labor Marketin Cash （www.cninfo.com.cn）
38 Electronic control Labor dispatch fee 8.17 8.17 0.00% 6,000.00 No - December 24,2021,
service No.:2021-091,2021-
Products Co., under the g price settlement December 17,2022 092,2021-094,2021-
Ltd. same
109,2022-097,2022-
controlling
95
CHANGHONG MEILING CO.,LTD. Annual Report 2022
shareholder 098,2022-99.
and ultimate
controller
Juchao Website
Sichuan Spot （www.cninfo.com.cn）
Kitchen and December 7, 2021,
Changhong Controlling Sales of Marketin No exchange, No.:2021-091,2021-
39 bathroom and 138.77 138.77 0.01% 1,500.00 - December 24,2021,
Electric Co., shareholder goods g price Bank December 17,2022 092,2021-094,2021-
small appliances 109,2022-097,2022-
Ltd. acceptance
098,2022-99.
Sichuan
Changhong Juchao Website
Controlling （www.cninfo.com.cn）
Electronics December 7, 2021,
shareholder Sales of Marketin No Cash No.:2021-091,2021-
40 Air-conditioning 42.38 42.38 0.00% 2,500.00 - December 24,2021,
Holding and ultimate goods g price settlement 092,2021-094,2021-
December 17,2022
Group Co., controller 109,2022-097,2022-
098,2022-99.
Ltd.
Other
enterprise
control Juchao Website
Sichuan （www.cninfo.com.cn）
under the Air-conditioning, December 7, 2021,
Changhong Sales of Marketin No Cash No.:2021-091,2021-
41 same frozen foam 6.20 6.20 0.00% 10,000.00 - December 24,2021,
Jijia Fine Co., goods g price settlement 092,2021-094,2021-
controlling cabinet body December 17,2022
Ltd. 109,2022-097,2022-
shareholder 098,2022-99.
and ultimate
controller
Other
enterprise
Sichuan control Juchao Website
under the （www.cninfo.com.cn）
Changhong December 7, 2021,
Sales of Marketin No Cash No.:2021-091,2021-
42 same Plastic parts 68.44 68.44 0.00% 31,000.00 - December 24,2021,
Mold Plastic goods g price settlement December 17,2022 092,2021-094,2021-
controlling 109,2022-097,2022-
Tech. Co., Ltd. shareholder
098,2022-99.
and ultimate
controller
Lejiayi Chain Other Juchao Website
Small appliances, December 7, 2021,
Management enterprise Sales of Marketin No Cash （www.cninfo.com.cn）
43 Refrigerator and 125.36 125.36 0.01% 5,000.00 - December 24,2021,
control goods air conditioner g price settlement December 17,2022 No.:2021-091,2021-
Co., Ltd. 092,2021-094,2021-
under the
96
CHANGHONG MEILING CO.,LTD. Annual Report 2022
same 109,2022-097,2022-
controlling 098,2022-99.
shareholder
and ultimate
controller
Other
Sichuan enterprise
control washing Juchao Website
Zhiyijia Spot （www.cninfo.com.cn）
under the machine,Refrigera December 7, 2021,
Network Sales of Marketin No exchange, No.:2021-091,2021-
44 same tor,freezer,Air 683,520.47 683,520.47 34.11% 740,000.00 - December 24,2021,
goods g price Bank December 17,2022 092,2021-094,2021-
Technology controlling conditioner,small 109,2022-097,2022-
acceptance
Co., Ltd. shareholder appliances 098,2022-99.
and ultimate
controller
Other
Sichuan enterprise
control Juchao Website
Changhong Small appliances, （www.cninfo.com.cn）
under the December 7, 2021,
Device Sales of water, electricity, Marketin No Cash No.:2021-091,2021-
45 same 10.46 10.46 0.00% 5,000.00 - December 24,2021,
goods compressed air, g price settlement 092,2021-094,2021-
Technology controlling December 17,2022
etc 109,2022-097,2022-
Co., Ltd. shareholder 098,2022-99.
and ultimate
controller
Other
Sichuan enterprise
control Juchao Website
Changhong （www.cninfo.com.cn）
under the Air December 7, 2021,
Minsheng Sales of Marketin No Cash No.:2021-091,2021-
46 same conditioner,Refrig 254.19 254.19 0.01% 5,000.00 - December 24,2021,
goods g price settlement December 17,2022 092,2021-094,2021-
Logistics Co., controlling erator 109,2022-097,2022-
Ltd. shareholder 098,2022-99.
and ultimate
controller
Other Juchao Website
enterprise Air
Sichuan （www.cninfo.com.cn）
conditioners,inver December 7, 2021,
Service Exp. control Sales of Marketin No Cash No.:2021-091,2021-
47 ter integrated 704.59 704.59 0.04% 5,000.00 - December 24,2021,
under the goods boards, g price settlement December 17,2022 092,2021-094,2021-
Appliance 109,2022-097,2022-
same components etc.
098,2022-99.
controlling
97
CHANGHONG MEILING CO.,LTD. Annual Report 2022
Service Chain shareholder
Co., Ltd. and ultimate
controller
Other
enterprise
control Juchao Website
Sichuan （www.cninfo.com.cn）
under the December 7, 2021,
Huafeng Sales of Marketin No Cash No.:2021-091,2021-
48 same Air conditioner 35.31 35.31 0.00% 2,500.00 - December 24,2021,
Technology goods g price settlement December 17,2022 092,2021-094,2021-
controlling 109,2022-097,2022-
Co., Ltd.
shareholder 098,2022-99.
and ultimate
controller
Other
enterprise
control Juchao Website
Sichuan （www.cninfo.com.cn）
under the December 7, 2021,
Changhong Sales of Marketin No Cash No.:2021-091,2021-
49 same Air conditioner 9.72 9.72 0.00% 5,000.00 - December 24,2021,
Real Estate goods g price settlement 092,2021-094,2021-
controlling December 17,2022
Co., Ltd. 109,2022-097,2022-
shareholder 098,2022-99.
and ultimate
controller
Other
enterprise
control Juchao Website
Guangdong （www.cninfo.com.cn）
under the December 7, 2021,
Changhong Sales of small appliances, Marketin No Cash No.:2021-091,2021-
50 same 10.59 10.59 0.00% 5,000.00 - December 24,2021,
Electronics goods Air conditioner g price settlement December 17,2022 092,2021-094,2021-
controlling 109,2022-097,2022-
Co., Ltd.
shareholder 098,2022-99.
and ultimate
controller
Other
enterprise Juchao Website
control （www.cninfo.com.cn）
Sichuan Aoku December 7, 2021,
under the Sales of Marketin No Cash No.:2021-091,2021-
51 Technology Air conditioner 23.01 23.01 0.00% 2,500.00 - December 24,2021,
same goods g price settlement December 17,2022 092,2021-094,2021-
Co., Ltd. 109,2022-097,2022-
controlling
098,2022-99.
shareholder
and ultimate
98
CHANGHONG MEILING CO.,LTD. Annual Report 2022
controller
Other
enterprise
control Juchao Website
Changhong （www.cninfo.com.cn）
under the December 7, 2021,
Huayi Sales of Marketin No Cash No.:2021-091,2021-
52 same Air conditioner 7.26 7.26 0.00% 48,000.00 - December 24,2021,
Compressor goods g price settlement December 17,2022 092,2021-094,2021-
controlling 109,2022-097,2022-
Co., Ltd.
shareholder 098,2022-99.
and ultimate
controller
Other
enterprise
Guangyuan control Air Juchao Website
Changhong under the conditioner,Kitche （www.cninfo.com.cn）
December 7, 2021,
Sales of Marketin No Cash No.:2021-091,2021-
53 Electronic same n and 15.00 15.00 0.00% 5,000.00 - December 24,2021,
goods g price settlement 092,2021-094,2021-
Technology controlling bathroom,small December 17,2022
109,2022-097,2022-
Co., Ltd. shareholder appliances 098,2022-99.
and ultimate
controller
Other
enterprise
control Juchao Website
Sichuan under the （www.cninfo.com.cn）
December 7, 2021,
Hongxin Sales of Marketin No Cash No.:2021-091,2021-
54 same small appliances 0.11 0.11 0.00% 5,000.00 - December 24,2021,
Software Co., goods g price settlement 092,2021-094,2021-
controlling December 17,2022
Ltd. 109,2022-097,2022-
shareholder 098,2022-99.
and ultimate
controller
Other
enterprise
control Juchao Website
（www.cninfo.com.cn）
CHANGHON under the December 7, 2021,
Sales of Marketin No Cash No.:2021-091,2021-
55 G(HK)TRADI same Air conditioner 35,986.86 35,986.86 1.80% 130,000.00 - December 24,2021,
092,2021-094,2021-
NGLIMITED controlling goods g price settlement December 17,2022
109,2022-097,2022-
shareholder 098,2022-99.
and ultimate
controller
99
CHANGHONG MEILING CO.,LTD. Annual Report 2022
Other
enterprise
control Juchao Website
CHANGHON under the （www.cninfo.com.cn）
December 7, 2021,
GELECTRIC( Sales of Refrigerator,freez Marketin No Cash No.:2021-091,2021-
56 same 16,831.82 16,831.82 0.84% 130,000.00 - December 24,2021,
AUSTRALIA goods ers and accessories g price settlement 092,2021-094,2021-
controlling December 17,2022
)PTY.LTD. 109,2022-097,2022-
shareholder 098,2022-99.
and ultimate
controller
Other
enterprise
control Juchao Website
under the （www.cninfo.com.cn）
December 7, 2021,
Orion.PDP.Co. Sales of Marketin No Cash No.:2021-091,2021-
57 same Refrigerator 5,156.73 5,156.73 0.26% 5,400.00 - December 24,2021,
,ltd goods g price settlement 092,2021-094,2021-
controlling December 17,2022
109,2022-097,2022-
shareholder 098,2022-99.
and ultimate
controller
Other
enterprise
control Juchao Website
（www.cninfo.com.cn）
ChanghongEu under the December 7, 2021,
Sales of Marketin No Cash No.:2021-091,2021-
58 ropeElectrics.r same Refrigerator 1,376.83 1,376.83 0.07% 10,000.00 - December 24,2021,
.o goods g price settlement December 17,2022 092,2021-094,2021-
controlling 109,2022-097,2022-
shareholder 098,2022-99.
and ultimate
controller
Other
enterprise
control Juchao Website
CHANGHON under the （www.cninfo.com.cn）
December 7, 2021,
GELECTRIC Sales of Refrigerator,freez Marketin No Cash No.:2021-091,2021-
59 same 1,725.97 1,725.97 0.09% 5,000.00 - December 24,2021,
MIDDLEEAS goods ers and accessories g price settlement 092,2021-094,2021-
controlling December 17,2022
TFZCO 109,2022-097,2022-
shareholder 098,2022-99.
and ultimate
controller
Changhong Other Refrigerator,freez No December 7, 2021, Juchao Website
60 Sales of Marketin 10,146.95 10,146.95 0.51% 35,000.00 Cash -
International enterprise ers,Air December 24,2021, （www.cninfo.com.cn）
100
CHANGHONG MEILING CO.,LTD. Annual Report 2022
Holdings control goods conditioner, g price settlement December 17,2022 No.:2021-091,2021-
(Hong Kong) under the kitchen utensils 092,2021-094,2021-
109,2022-097,2022-
Co., Ltd. same
098,2022-99.
controlling
shareholder
and ultimate
controller
Other
enterprise
Sichuan control Juchao Website
Aichuang under the Kitchen and （www.cninfo.com.cn）
December 7, 2021,
Sales of Marketin No Cash No.:2021-091,2021-
61 Science & same bathroom and 2.19 2.19 0.00% 2,500.00 - December 24,2021,
goods g price settlement December 17,2022 092,2021-094,2021-
Technology controlling small appliances 109,2022-097,2022-
Co., Ltd. shareholder 098,2022-99.
and ultimate
controller
Other
enterprise
control Juchao Website
under the （www.cninfo.com.cn）
Yuanxin December 7, 2021,
Sales of Marketin No Cash No.:2021-091,2021-
62 Finance lease same Air conditioner 245.87 245.87 0.01% 5,000.00 - December 24,2021,
goods g price settlement 092,2021-094,2021-
Co., Ltd. controlling December 17,2022
109,2022-097,2022-
shareholder 098,2022-99.
and ultimate
controller
Other
enterprise
control Juchao Website
Sichuan under the （www.cninfo.com.cn）
December 7, 2021,
Ansifei Sales of Marketin No Cash No.:2021-091,2021-
63 same Air conditioner 2.42 2.42 0.00% 2,500.00 - December 24,2021,
Technology goods g price settlement 092,2021-094,2021-
controlling December 17,2022
Co., Ltd. 109,2022-097,2022-
shareholder 098,2022-99.
and ultimate
controller
Sichuan Other Juchao Website
Kitchen and December 7, 2021,
Qiruike enterprise Sales of Marketin No Cash （www.cninfo.com.cn）
64 bathroom and 0.31 0.31 0.00% 2,500.00 - December 24,2021,
Technology control goods g price settlement No.:2021-091,2021-
small appliances December 17,2022
Co., Ltd. under the 092,2021-094,2021-
101
CHANGHONG MEILING CO.,LTD. Annual Report 2022
same 109,2022-097,2022-
controlling 098,2022-99.
shareholder
and ultimate
controller
Sichuan
Changhong Juchao Website
Controlling （www.cninfo.com.cn）
Electronics December 7, 2021,
shareholder Providing Installation Marketin No Cash No.:2021-091,2021-
65 31.20 31.20 0.70% 2,500.00 - December 24,2021,
Holding and ultimate services service g price settlement 092,2021-094,2021-
December 17,2022
109,2022-097,2022-
Group Co., controller
098,2022-99.
Ltd.
Other
enterprise
control Juchao Website
Sichuan （www.cninfo.com.cn）
under the December 7, 2021,
Changhong Providing Labor cost Marketin No Cash No.:2021-091,2021-
66 same 33.90 33.90 0.76% 6,000.00 - December 24,2021,
Mold Plastic services g price settlement 092,2021-094,2021-
controlling December 17,2022
Tech. Co., Ltd. 109,2022-097,2022-
shareholder 098,2022-99.
and ultimate
controller
Other
enterprise
control Juchao Website
Sichuan （www.cninfo.com.cn）
under the December 7, 2021,
Changhong Providing Labor cost Marketin No Cash No.:2021-091,2021-
67 same 8.32 8.32 0.19% 6,000.00 - December 24,2021,
Jijia Fine Co., services g price settlement December 17,2022 092,2021-094,2021-
controlling 109,2022-097,2022-
Ltd.
shareholder 098,2022-99.
and ultimate
controller
Other
Sichuan enterprise Juchao Website
Aichuang （www.cninfo.com.cn）
control December 7, 2021,
Providing Technical service Marketin No Cash No.:2021-091,2021-
68 Science & under the -24.22 -24.22 -0.54% 2,500.00 - December 24,2021,
services fee,Labor cost g price settlement 092,2021-094,2021-
Technology same December 17,2022
109,2022-097,2022-
Co., Ltd. controlling 098,2022-99.
shareholder
102
CHANGHONG MEILING CO.,LTD. Annual Report 2022
and ultimate
controller
Other
enterprise
control Juchao Website
Sichuan （www.cninfo.com.cn）
under the December 7, 2021,
Huafeng Providing Labor cost Marketin No Cash No.:2021-091,2021-
69 same 44.28 44.28 0.99% 2,500.00 - December 24,2021,
Technology services g price settlement December 17,2022 092,2021-094,2021-
controlling 109,2022-097,2022-
Co., Ltd.
shareholder 098,2022-99.
and ultimate
controller
Other
enterprise
Sichuan control Juchao Website
Zhiyijia under the （www.cninfo.com.cn）
December 7, 2021,
Providing Service fee Marketin No Cash No.:2021-091,2021-
70 Network same 95.27 95.27 2.13% 6,000.00 - December 24,2021,
services g price settlement 092,2021-094,2021-
Technology controlling December 17,2022
109,2022-097,2022-
Co., Ltd. shareholder 098,2022-99.
and ultimate
controller
Juchao Website
Sichuan （www.cninfo.com.cn）
December 7, 2021,
Changhong Controlling Providing Marketin No Cash No.:2021-091,2021-
71 Labor cost 227.18 227.18 5.08% 6,000.00 - December 24,2021,
Electric Co., shareholder services g price settlement 092,2021-094,2021-
December 17,2022
Ltd. 109,2022-097,2022-
098,2022-99.
Other
enterprise
Sichuan control Juchao Website
Changhong under the （www.cninfo.com.cn）
December 7, 2021,
Providing Technical service Marketin No Cash No.:2021-091,2021-
72 Device same 9.38 9.38 0.21% 6,000.00 - December 24,2021,
services fee g price settlement December 17,2022 092,2021-094,2021-
Technology controlling 109,2022-097,2022-
Co., Ltd. shareholder 098,2022-99.
and ultimate
controller
Mianyang Other December 7, 2021, Juchao Website
Huafeng Providing Marketin No Cash
73 enterprise Repair Service 8.82 8.82 0.20% 2,500.00 - December 24,2021, （www.cninfo.com.cn）
Hulian services g price settlement December 17,2022
Technology control No.:2021-091,2021-
103
CHANGHONG MEILING CO.,LTD. Annual Report 2022
Co., Ltd. under the 092,2021-094,2021-
same 109,2022-097,2022-
098,2022-99.
controlling
shareholder
and ultimate
controller
Other
enterprise
control Juchao Website
Changhong （www.cninfo.com.cn）
under the December 7, 2021,
Huayi Providing Technical service Marketin No Cash No.:2021-091,2021-
74 same 204.96 204.96 4.58% 500.00 - December 24,2021,
Compressor services fee g price settlement December 17,2022 092,2021-094,2021-
controlling 109,2022-097,2022-
Co., Ltd.
shareholder 098,2022-99.
and ultimate
controller
Other
enterprise
Sichuan control Juchao Website
Changhong under the （www.cninfo.com.cn）
December 7, 2021,
Providing Marketin No Cash No.:2021-091,2021-
75 Minsheng same Labor cost 21.58 21.58 0.48% 6,000.00 - December 24,2021,
services g price settlement 092,2021-094,2021-
Logistics Co., controlling December 17,2022
109,2022-097,2022-
Ltd. shareholder 098,2022-99.
and ultimate
controller
Other
enterprise
control Juchao Website
Hefei （www.cninfo.com.cn）
under the December 7, 2021,
Changhong Providing Marketin No Cash No.:2021-091,2021-
76 same Labor cost 0.35 0.35 0.01% 6,000.00 - December 24,2021,
Industrial Co., services g price settlement December 17,2022 092,2021-094,2021-
controlling 109,2022-097,2022-
Ltd.
shareholder 098,2022-99.
and ultimate
controller
Sichuan Other Juchao Website
Service Exp. enterprise December 7, 2021, （www.cninfo.com.cn）
Providing Marketin No Cash
77 Appliance control Labor cost 197.79 197.79 4.42% 6,000.00 - December 24,2021, No.:2021-091,2021-
services g price settlement December 17,2022
Service Chain under the 092,2021-094,2021-
Co., Ltd. same 109,2022-097,2022-
104
CHANGHONG MEILING CO.,LTD. Annual Report 2022
controlling 098,2022-99.
shareholder
and ultimate
controller
Other
enterprise
control Juchao Website
Sichuan Aoku under the （www.cninfo.com.cn）
December 7, 2021,
Providing Marketin No Cash No.:2021-091,2021-
78 Technology same Labor cost 15.62 15.62 0.35% 2,500.00 - December 24,2021,
services g price settlement December 17,2022 092,2021-094,2021-
Co., Ltd. controlling 109,2022-097,2022-
shareholder 098,2022-99.
and ultimate
controller
Other
enterprise
control Juchao Website
Sichuan （www.cninfo.com.cn）
under the December 7, 2021,
Changhong Providing Marketin No Cash No.:2021-091,2021-
79 same Maintenance fees 3.46 3.46 0.08% 2,500.00 - December 24,2021,
International services g price settlement 092,2021-094,2021-
controlling December 17,2022
Hotel Co., Ltd. 109,2022-097,2022-
shareholder 098,2022-99.
and ultimate
controller
Other
enterprise
Juchao Website
control
（www.cninfo.com.cn）
081 Electronic under the December 7, 2021,
provide Marketin No Cash No.:2021-091,2021-
80 Group Co., same Maintenance fee 9.31 9.31 0.21% 6,000.00 - December 24,2021,
labor g price settlement 092,2021-094,2021-
Ltd. controlling December 17,2022
109,2022-097,2022-
shareholder
098,2022-99.
and ultimate
controller
Other
enterprise
Juchao Website
Sichuan control
（www.cninfo.com.cn）
Changhong under the December 7, 2021,
provide Marketin No Cash No.:2021-091,2021-
81 Electronic same Labor costs 0.36 0.36 0.01% 6,000.00 - December 24,2021,
labor g price settlement 092,2021-094,2021-
Products Co., controlling December 17,2022
Ltd. shareholder 109,2022-097,2022-
098,2022-99.
and ultimate
controller
105
CHANGHONG MEILING CO.,LTD. Annual Report 2022
Other
enterprise
control Juchao Website
Sichuan （www.cninfo.com.cn）
under the December 7, 2021,
Qiruike Providing Marketin No Cash No.:2021-091,2021-
82 same Labor cost 0.13 0.13 0.00% 2,500.00 - December 24,2021,
Technology services g price settlement December 17,2022 092,2021-094,2021-
controlling 109,2022-097,2022-
Co., Ltd.
shareholder 098,2022-99.
and ultimate
controller
Other
enterprise
control Juchao Website
Guangyuan （www.cninfo.com.cn）
under the December 7, 2021,
Hongcheng Providing Marketin No Cash No.:2021-091,2021-
83 same Labor cost 4.59 4.59 0.10% 2,500.00 - December 24,2021,
Industrial Co., services g price settlement 092,2021-094,2021-
controlling December 17,2022
Ltd. 109,2022-097,2022-
shareholder 098,2022-99.
and ultimate
controller
Other
enterprise
Sichuan control Juchao Website
Changhong under the （www.cninfo.com.cn）
December 7, 2021,
Precision Providing Marketin No Cash No.:2021-091,2021-
84 same Labor cost 0.41 0.41 0.01% 6,000.00 - December 24,2021,
Electronics services g price settlement 092,2021-094,2021-
controlling December 17,2022
Technology 109,2022-097,2022-
Co., Ltd shareholder 098,2022-99.
and ultimate
controller
Other
enterprise
control Juchao Website
under the （www.cninfo.com.cn）
Yuanxin December 7, 2021,
Providing Financing service, Marketin No Cash No.:2021-091,2021-
85 Finance Lease same 284.32 284.32 6.36% 6,000.00 - December 24,2021,
services etc g price settlement 092,2021-094,2021-
Co., Ltd. controlling December 17,2022
109,2022-097,2022-
shareholder 098,2022-99.
and ultimate
controller
Sichuan Other No December 7, 2021, Juchao Website
86 Providing Technical service Marketin 17.16 17.16 0.38% 2,500.00 Cash -
Changhong enterprise December 24,2021, （www.cninfo.com.cn）
106
CHANGHONG MEILING CO.,LTD. Annual Report 2022
Property control services fee g price settlement December 17,2022 No.:2021-091,2021-
Service Co., under the 092,2021-094,2021-
109,2022-097,2022-
Ltd. same
098,2022-99.
controlling
shareholder
and ultimate
controller
Other
enterprise
control Juchao Website
Sichuan under the （www.cninfo.com.cn）
December 7, 2021,
Ansifei Providing Installation Marketin No Cash No.:2021-091,2021-
87 same -0.27 -0.27 -0.01% 2,500.00 - December 24,2021,
Technology services service g price settlement 092,2021-094,2021-
controlling December 17,2022
Co.,Ltd. 109,2022-097,2022-
shareholder 098,2022-99.
and ultimate
controller
Other
Sichuan enterprise
Changhong control Juchao Website
Jiechuang under the （www.cninfo.com.cn）
December 7, 2021,
Providing Marketin No Cash No.:2021-091,2021-
88 Lithium same Labor cost 5.73 5.73 0.13% 2,500.00 - December 24,2021,
services g price settlement 092,2021-094,2021-
Battery controlling December 17,2022
109,2022-097,2022-
Technology shareholder 098,2022-99.
Co., Ltd. and ultimate
controller
Other
enterprise
control Juchao Website
Sichuan under the （www.cninfo.com.cn）
December 7, 2021,
Hongwei Providing Technical service Marketin No Cash No.:2021-091,2021-
89 same 4.65 4.65 0.10% 6,000.00 - December 24,2021,
Technology services fee g price settlement 092,2021-094,2021-
controlling December 17,2022
Co., Ltd. 109,2022-097,2022-
shareholder 098,2022-99.
and ultimate
controller
Guangdong Other Juchao Website
December 7, 2021,
Changhong enterprise Provide fuel Installation Marketin No Cash （www.cninfo.com.cn）
90 81.98 81.98 1.83% 6,000.00 - December 24,2021,
Electronics control power service g price settlement No.:2021-091,2021-
December 17,2022
Co., Ltd. under the 092,2021-094,2021-
107
CHANGHONG MEILING CO.,LTD. Annual Report 2022
same 109,2022-097,2022-
controlling 098,2022-99.
shareholder
and ultimate
controller
Other
enterprise
control Juchao Website
Guangdong （www.cninfo.com.cn）
under the December 7, 2021,
Changhong Rent to the Marketin No Cash No.:2021-091,2021-
91 same Lodging house 1.42 1.42 0.01% 4,000.00 - December 24,2021,
Electronics related party g price settlement December 17,2022 092,2021-094,2021-
controlling 109,2022-097,2022-
Co., Ltd.
shareholder 098,2022-99.
and ultimate
controller
Other
enterprise
control Juchao Website
Hefei （www.cninfo.com.cn）
under the Rental December 7, 2021,
Changhong Rent to the Marketin No Cash No.:2021-091,2021-
92 same apartment,wareho 61.26 61.26 0.54% 4,000.00 - December 24,2021,
Industrial Co., related party g price settlement 092,2021-094,2021-
controlling uses December 17,2022
Ltd. 109,2022-097,2022-
shareholder 098,2022-99.
and ultimate
controller
Other
enterprise
Sichuan control Juchao Website
Aichuang under the （www.cninfo.com.cn）
December 7, 2021,
Rent to the Marketin No Cash No.:2021-091,2021-
93 Science & same Warehouse for rent 6.00 6.00 0.05% 2,500.00 - December 24,2021,
related party g price settlement December 17,2022 092,2021-094,2021-
Technology controlling 109,2022-097,2022-
Co., Ltd. shareholder 098,2022-99.
and ultimate
controller
Other
（www.cninfo.com.cn）
Sichuan Ailian enterprise
December 7, 2021, 2021-091、2021-092、
Science & control Rent to the Marketin No Cash
94 Warehouse for rent 0.19 0.19 0.00% 2,500.00 - December 24,2021, 2021-094、2021-109、
Technology under the related party g price settlement December 17,2022 2022-097、2022-098、
Co., Ltd. same 2022-99
controlling
108
CHANGHONG MEILING CO.,LTD. Annual Report 2022
shareholder
and ultimate
controller
Other
enterprise
control Juchao Website
Sichuan Aoku under the （www.cninfo.com.cn）
December 7, 2021,
Rent to the Marketin No Cash No.:2021-091,2021-
95 Technology same Warehouse for rent 0.95 0.95 0.01% 2,500.00 - December 24,2021,
related party g price settlement December 17,2022 092,2021-094,2021-
Co., Ltd. controlling 109,2022-097,2022-
shareholder 098,2022-99.
and ultimate
controller
Other
enterprise
Sichuan control Juchao Website
Service Exp. under the （www.cninfo.com.cn）
December 7, 2021,
Rent to the Rental Marketin No Cash No.:2021-091,2021-
96 Appliance same 18.46 18.46 0.16% 4,000.00 - December 24,2021,
related party apartment,office g price settlement 092,2021-094,2021-
Service Chain controlling December 17,2022
109,2022-097,2022-
Co., Ltd. shareholder 098,2022-99.
and ultimate
controller
Other
enterprise
control Juchao Website
Sichuan （www.cninfo.com.cn）
under the December 7, 2021,
Qiruike Rent to the Marketin No Cash No.:2021-091,2021-
97 same Lease of factory 4.73 4.73 0.04% 2,500.00 - December 24,2021,
Technology related party g price settlement December 17,2022 092,2021-094,2021-
controlling 109,2022-097,2022-
Co., Ltd.
shareholder 098,2022-99.
and ultimate
controller
Juchao Website
Sichuan （www.cninfo.com.cn）
December 7, 2021,
Changhong Controlling Rent to the Lease of Marketin No Cash No.:2021-091,2021-
98 178.68 178.68 1.58% 4,000.00 - December 24,2021,
Electric Co., shareholder related party factory,equipment g price settlement 092,2021-094,2021-
December 17,2022
Ltd. 109,2022-097,2022-
098,2022-99.
Sichuan Controlling Lease from Lease of factory Marketin No Cash December 7, 2021, Juchao Website
99 1.96 1.96 0.02% 2,500.00 -
Changhong shareholder related g price settlement December 24,2021, （www.cninfo.com.cn）
109
CHANGHONG MEILING CO.,LTD. Annual Report 2022
Electronics and ultimate parties December 17,2022 No.:2021-091,2021-
Holding controller 092,2021-094,2021-
Group Co., 109,2022-097,2022-
Ltd. 098,2022-99.
Other
enterprise
control Juchao Website
Sichuan Rental （www.cninfo.com.cn）
under the December 7, 2021,
Changhong Rent to the apartment,wareho Marketin No Cash No.:2021-091,2021-
100 same 450.21 450.21 3.99% 4,000.00 - December 24,2021,
Jijia Fine Co., related party uses,plants,equip g price settlement December 17,2022 092,2021-094,2021-
controlling 109,2022-097,2022-
Ltd. ment
shareholder 098,2022-99.
and ultimate
controller
Other
enterprise
Sichuan control Juchao Website
Changhong under the Serviced （www.cninfo.com.cn）
December 7, 2021,
Rent to the Marketin No Cash No.:2021-091,2021-
101 Precision same apartment, living 14.76 14.76 0.13% 4,000.00 - December 24,2021,
related party g price settlement 092,2021-094,2021-
Electronics controlling quarters December 17,2022
109,2022-097,2022-
Tech. Co., Ltd. shareholder 098,2022-99.
and ultimate
controller
Other
enterprise
Sichuan control Juchao Website
Changhong under the Serviced （www.cninfo.com.cn）
December 7, 2021,
Rent to the Marketin No Cash No.:2021-091,2021-
102 Minsheng same apartment, office, 23.48 23.48 0.21% 4,000.00 - December 24,2021,
related party g price settlement December 17,2022 092,2021-094,2021-
Logistics Co., controlling etc. 109,2022-097,2022-
Ltd. shareholder 098,2022-99.
and ultimate
controller
Other Rental of living
enterprise quarters Juchao Website
Sichuan （www.cninfo.com.cn）
control apartments, December 7, 2021,
Changhong Rent to the Marketin No Cash No.:2021-091,2021-
103 under the warehouse, 888.39 888.39 7.87% 4,000.00 - December 24,2021,
Mold Plastic related party g price settlement 092,2021-094,2021-
same workshop, December 17,2022
Tech. Co., Ltd. 109,2022-097,2022-
controlling equipment and 098,2022-99.
shareholder living quarters
110
CHANGHONG MEILING CO.,LTD. Annual Report 2022
and ultimate
controller
Other
enterprise
Sichuan control Juchao Website
Changhong under the （www.cninfo.com.cn）
December 7, 2021,
Rent to the Marketin No Cash No.:2021-091,2021-
104 Device same Lease of factory 214.71 214.71 1.90% 4,000.00 - December 24,2021,
related party g price settlement December 17,2022 092,2021-094,2021-
Technology controlling 109,2022-097,2022-
Co., Ltd. shareholder 098,2022-99.
and ultimate
controller
Other
enterprise
Sichuan control Juchao Website
Zhiyijia under the （www.cninfo.com.cn）
December 7, 2021,
Rent to the Marketin No Cash No.:2021-091,2021-
105 Network same Rental apartment 18.83 18.83 0.17% 4,000.00 - December 24,2021,
related party g price settlement 092,2021-094,2021-
Technology controlling December 17,2022
109,2022-097,2022-
Co., Ltd. shareholder 098,2022-99.
and ultimate
controller
Other
enterprise
Juchao Website
control
Chonghong Leasing （www.cninfo.com.cn）
under the December 7, 2021,
Huayi Marketin No Cash No.:2021-091,2021-
106 same from related Lease of workshop 0.45 0.45 0.00% 500.00 - December 24,2021,
Compressor g price settlement 092,2021-094,2021-
controlling party December 17,2022
Co., Ltd. 109,2022-097,2022-
shareholder
098,2022-99.
and ultimate
controller
Other
enterprise
Chengdu control Juchao Website
Changhong under the Leasing （www.cninfo.com.cn）
December 7, 2021,
Marketin No Cash No.:2021-091,2021-
107 Electronic same from related Leasing office 71.39 71.39 0.63% 4,000.00 - December 24,2021,
g price settlement 092,2021-094,2021-
Technology controlling party December 17,2022
109,2022-097,2022-
Co., Ltd. shareholder 098,2022-99.
and ultimate
controller
111
CHANGHONG MEILING CO.,LTD. Annual Report 2022
Other
enterprise
control Juchao Website
Guangdong （www.cninfo.com.cn）
under the Leasing December 7, 2021,
Changhong Lease of staff Marketin No Cash No.:2021-091,2021-
108 same from related 114.01 114.01 1.01% 4,000.00 - December 24,2021,
Electronics dormitory, plant g price settlement December 17,2022 092,2021-094,2021-
controlling party 109,2022-097,2022-
Co., Ltd.
shareholder 098,2022-99.
and ultimate
controller
Other
enterprise
control Juchao Website
Hefei （www.cninfo.com.cn）
under the Leasing December 7, 2021,
Changhong Marketin No Cash No.:2021-091,2021-
109 same from related lease of plant 192.77 192.77 1.71% 4,000.00 - December 24,2021,
Industrial Co., g price settlement 092,2021-094,2021-
controlling party December 17,2022
Ltd. 109,2022-097,2022-
shareholder 098,2022-99.
and ultimate
controller
Other
enterprise
control Juchao Website
Sichuan （www.cninfo.com.cn）
under the Leasing December 7, 2021,
Jiahong Lease of staff Marketin No Cash No.:2021-091,2021-
110 same from related 49.92 49.92 0.44% 5,000.00 - December 24,2021,
Industrial Co., dormitory g price settlement December 17,2022 092,2021-094,2021-
controlling party 109,2022-097,2022-
Ltd.
shareholder 098,2022-99.
and ultimate
controller
Juchao Website
Sichuan （www.cninfo.com.cn）
Leasing Lease of December 7, 2021,
Changhong Controlling Marketin No Cash No.:2021-091,2021-
111 from related laboratory and 362.45 362.45 3.21% 4,000.00 - December 24,2021,
Electric Co., shareholder workshop g price settlement December 17,2022 092,2021-094,2021-
party 109,2022-097,2022-
Ltd.
098,2022-99.
Sichuan Juchao Website
Controlling （www.cninfo.com.cn）
Changhong Leasing December 7, 2021,
shareholder Marketin No Cash No.:2021-091,2021-
112 Electronics from related Lease shop 12.75 12.75 0.11% 5,000.00 - December 24,2021,
and ultimate g price settlement December 17,2022 092,2021-094,2021-
Holding party 109,2022-097,2022-
controller
Group Co., 098,2022-99.
112
CHANGHONG MEILING CO.,LTD. Annual Report 2022
Ltd.
Other
enterprise
control Juchao Website
Changhong （www.cninfo.com.cn）
under the Leasing December 7, 2021,
Huayi Lease of staff Marketin No Cash No.:2021-091,2021-
113 same from related 14.05 14.05 0.12% 500.00 - December 24,2021,
Compressor dormitory g price settlement December 17,2022 092,2021-094,2021-
controlling party 109,2022-097,2022-
Co., Ltd.
shareholder 098,2022-99.
and ultimate
controller
Other
enterprise
Sichuan control Purchase Juchao Website
Changhong Spot （www.cninfo.com.cn）
under the and December 7, 2021,
Intelligent assembly line Marketin No exchange, No.:2021-091,2021-
114 same construction 53.68 53.68 0.18% 3,000.00 - December 24,2021,
Manufacturing body g price Bank 092,2021-094,2021-
controlling of fixed December 17,2022
Technology acceptance 109,2022-097,2022-
Co., Ltd. shareholder assets 098,2022-99.
and ultimate
controller
Purchase Juchao Website
Sichuan （www.cninfo.com.cn）
and Relocation and December 7, 2021,
Changhong Controlling Marketin No Cash No.:2021-091,2021-
115 construction transformation of 140.00 140.00 0.48% 1,500.00 - December 24,2021,
Electric Co., shareholder g price settlement 092,2021-094,2021-
of fixed equipment December 17,2022
Ltd. 109,2022-097,2022-
assets 098,2022-99.
Other
enterprise
Knowledge Juchao Website
control Purchase
Sichuan management, （www.cninfo.com.cn）
under the and December 7, 2021,
Hongxin integration and Marketin No Cash No.:2021-091,2021-
116 same construction 566.84 566.84 1.93% 1,500.00 - December 24,2021,
Software Co., functional g price settlement December 17,2022 092,2021-094,2021-
controlling of fixed 109,2022-097,2022-
Ltd. improvement
shareholder assets 098,2022-99.
projects
and ultimate
controller
Sichuan Other Juchao Website
Purchase December 7, 2021, （www.cninfo.com.cn）
Hongxin enterprise Information Marketin No Cash
117 Intangible 125.49 125.49 0.43% 1,500.00 - December 24,2021, No.:2021-091,2021-
Software Co., control management g price settlement
assets December 17,2022 092,2021-094,2021-
Ltd. under the 109,2022-097,2022-
113
CHANGHONG MEILING CO.,LTD. Annual Report 2022
same 098,2022-99.
controlling
shareholder
and ultimate
controller
Other
enterprise
Sichuan control Juchao Website
Zhiyijia under the （www.cninfo.com.cn）
December 7, 2021,
Purchase of Marketin No Cash No.:2021-091,2021-
118 Network same Self use TV 2.24 2.24 0.01% 1,500.00 - December 24,2021,
fixed assets g price settlement December 17,2022 092,2021-094,2021-
Technology controlling 109,2022-097,2022-
Co., Ltd. shareholder 098,2022-99.
and ultimate
controller
Sichuan Juchao Website
Purchase
Changhong Controlling （www.cninfo.com.cn）
and December 7, 2021,
Electronics shareholder Marketin No Cash No.:2021-091,2021-
119 construction Fire upgrades 226.42 226.42 0.77% 5,000.00 - December 24,2021,
Holding and ultimate g price settlement 092,2021-094,2021-
of fixed December 17,2022
Group Co., controller 109,2022-097,2022-
assets 098,2022-99.
Ltd.
Other
enterprise
control Juchao Website
Guangdong （www.cninfo.com.cn）
under the December 7, 2021,
Changhong Purchase of Marketin No Cash No.:2021-091,2021-
120 same Self use TV 0.18 0.18 0.00% 1,500.00 - December 24,2021,
Electronics fixed assets g price settlement December 17,2022 092,2021-094,2021-
controlling 109,2022-097,2022-
Co., Ltd.
shareholder 098,2022-99.
and ultimate
controller
Other
enterprise
Mianyang Juchao Website
control Purchase
Science & （www.cninfo.com.cn）
under the and December 7, 2021,
Technology Marketin No Cash No.:2021-091,2021-
121 same construction Plant construction 45.04 45.04 0.15% 1,500.00 - December 24,2021,
City Big Data g price settlement 092,2021-094,2021-
controlling of fixed December 17,2022
Technology 109,2022-097,2022-
shareholder assets 098,2022-99.
Co., Ltd.
and ultimate
controller
114
CHANGHONG MEILING CO.,LTD. Annual Report 2022
Other
enterprise Juchao Website
Sichuan control
（www.cninfo.com.cn）
Changhong under the December 7, 2021,
Purchase Marketin No Cash No.:2021-091,2021-
122 Jiahua same Sevicer 39.43 39.43 0.13% 1,500.00 - December 24,2021,
fixed assets g price settlement 092,2021-094,2021-
Information controlling December 17,2022
109,2022-097,2022-
cO., ltd. shareholder
098,2022-99.
and ultimate
controller
Other
enterprise
control Juchao Website
Sichuan （www.cninfo.com.cn）
under the December 7, 2021,
Qiruike Purchase of laboratory Marketin No Cash No.:2021-091,2021-
123 same 6.56 6.56 0.02% 5,000.00 - December 24,2021,
Technology fixed assets equipment g price settlement December 17,2022 092,2021-094,2021-
controlling 109,2022-097,2022-
Co., Ltd.
shareholder 098,2022-99.
and ultimate
controller
Other
enterprise
control Juchao Website
Sichuan Aoku under the Computers, （www.cninfo.com.cn）
December 7, 2021,
Sale of fixed Marketin No Cash No.:2021-091,2021-
124 Technology same monitors, current 12.10 12.10 1.19% 2,500.00 - December 24,2021,
assets g price settlement 092,2021-094,2021-
Co., Ltd. controlling probes, etc. December 17,2022
109,2022-097,2022-
shareholder 098,2022-99.
and ultimate
controller
Other
enterprise
control Juchao Website
Yuanxin （www.cninfo.com.cn）
under the Financing Financing December 7, 2021,
Financial Marketin No Cash No.:2021-091,2021-
125 same 40,942.87 40,942.87 -- 82,000.00 - December 24,2021,
Lease Co., business business g price settlement December 17,2022 092,2021-094,2021-
controlling 109,2022-097,2022-
Ltd.
shareholder 098,2022-99.
and ultimate
controller
Total -- -- 1,141,146.87 -- -- -- -- -- -- --
Detail of sales return with major amount involved Not applicable
115
CHANGHONG MEILING CO.,LTD. Annual Report 2022
Report the actual implementation of the daily related transactions 1 It is estimated that the related transaction amount resulted by purchasing goods (including door shell and plastic products etc.) and accepting fuel and
which were projected about their total amount by types during the power from Sichuan Changhong and its subsidiary by the Company for year of 2022 was 2590 million yuan at most (tax-excluded), actually 1,815.0651
reporting period (if applicable) million yuan occurred in reporting period.
2. It is estimated that the related transaction amount resulted by purchasing compressors, Sell goods, accept or provide services with Changhong Huayi
and its subsidiary by the Company for year of 2022 was 485 million yuan at most (tax-excluded), actually 454.0019 million 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 9.1922 million 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 9,625 million yuan at most (tax-excluded), actually 7,511.782 million 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 year of
2022 was 40 million yuan at most (tax-excluded), actually 26.1082 million yuan occurred in reporting period.
. It is estimated that the related transaction amount from domestic finished goods logistic business outsourcing to Sichuan Changhong Minsheng Logistics
Co., Ltd. by the Company for year of 2022 was 750 million yuan at most (tax-excluded), actually 616.5716 million yuan occurred in reporting 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 300.2077 million 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 60 million yuan at most (tax-excluded), actually 59.6519 million 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 79 million yuan at most (tax-excluded), actually 53.9478 million 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 155.5116 million 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 82 million yuan at most, actually 409.4287 million yuan occurred in reporting period.
116
CHANGHONG MEILING CO.,LTD. Annual Report 2022
Reasons for major differences between trading price and market
Not applicable
reference price (if applicable)
117
CHANGHONG MEILING CO.,LTD. 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
Total assets
Net assets of Net profit of
Main Registered of the
Name of the the invested the invested
business of capital of the invested
Co-investor Association invested enterprise enterprise
the invested invested enterprise
enterprise (RMB (RMB
enterprise enterprise (RMB
'0,000) '0,000)
'0,000)
Engagement
Sichuan Changhong Electronic
in equity
(Group) Co., Ltd., Sichuan
investment,
Changhong Electric Co.,Ltd.,
Controlling investment
Sichuan Shenwan Hongyuan
shareholder management,
Changhong Equity Investment
and ultimate asset
Management Co., Ltd.,
controller, Changhong management
Guangdong Changhong
other Group and other
Electronics Co., Ltd., Sichuan
enterprises Sichuan activities
Qiruike Technology Co., Ltd.,
controlled by Shenwan with private
Sichuan Changhong Power
the same Hongyuan equity funds
Supply Co., Ltd., Sichuan
controlling Strategic (registration 1,500 million 26,035.12 26,033.24 33.24
Changhong New Energy
shareholder New Industry and filing
Technology Co., Ltd.,
and ultimate Parent Fund must be
Changhong Sanjie New Energy
controller, Partnership completed in
Co., Ltd., Sichuan Changhong
and listed (Limited Asset
Green Environmental Science
companies Partnership) Management
and Technology Co., Ltd., Yibin
with natural Association
Red-star Electronics Co., Ltd.,
persons as of China
Sichuan Changhong Digital
directors before the
Technology Co., Ltd., and
engagement
Changhong Huayi Compressor
in business
Co.,Ltd.
activities).
Progress of major projects under construction of the invested
N/A
enterprise (if any)
(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
118
CHANGHONG MEILING CO.,LTD. Annual Report 2022
Deposit business
Amount for the Period
Maximum daily The total Ending
Opening Total deposit
deposit limit (In Deposit interest amount Balance (10
Related party Relationship balance (In 10 amount for the
10 thousand rate range withdrawn in the thousand
thousand yuan) Period (10
yuan) Period (10 yuan)
thousand yuan)
thousand yuan)
Other enterprises
Sichuan
controlled by the
Changhong
same controlling 450,000.00 0.42%-3.60% 338,508.69 3,356,249.10 3,348,257.80 346,499.99
Group Finance
shareholder and
Co., Ltd.
ultimate controller
Credit extension or other financial business
Total amount ( 10 Actual amount ( 10
Related party Relationship Type of business
thousand yuan) thousand yuan)
Other enterprises
Sichuan Changhong Group controlled by the same Other financial services -
300,000.00 143,104.99
Finance Co., Ltd. controlling shareholder note issuance
and ultimate controller
Other enterprises
Sichuan Changhong Group controlled by the same Other financial services -
300,000.00 7,383.69
Finance Co., Ltd. controlling shareholder note discounting
and ultimate controller
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 provides 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
1. On June 22, 2022 and December 22, 2022, after deliberation and approval by the 27th meeting of the Tenth
Board of Directors, 19th meeting of the Tenth Board of Supervisors and the Fourth Extraordinary General Meeting
of Shareholders in 2022, it was agreed that it is estimated that the total amount of daily related transactions between
the Company and its subsidiaries and related parties in 2023 will not exceed RMB 16.47 billion (excluding tax); It
119
CHANGHONG MEILING CO.,LTD. Annual Report 2022
was also agreed that the company and Sichuan Changhong Group Finance Co., Ltd. will continue to carry out related
transactions of financial services such as deposits and loans in 2023.
2. On December 16, 2022, after deliberation and approval by the 29th meeting of the Tenth Board of Directors
and the 20th meeting of the Tenth Board of Supervisors, and it was agreed that the estimated daily related
transactions between the Company and its holding subsidiaries and Sichuan Changhong Electric Co.,Ltd. and its
subsidiaries in 2022 should not exceed RMB 10 million (excluding tax); It was estimated that in 2022, the amount
of daily related transactions such as sales of goods between the Company and its holding subsidiaries and Sichuan
Zhiyijia Network Technology Co., Ltd. would not exceed RMB 200 million (excluding tax); It was estimated that
the daily related transactions of sales between the Company and its holding subsidiaries and OrionCo.,Ltd in 2022
would be increased by RMB 4 million (excluding tax). After this increase, it is estimated that the total amount of
daily related transactions between the Company and its holding subsidiaries and Sichuan Changhong Electronic
(Group) Co., Ltd. and its holding subsidiaries (excluding Sichuan Changhong) will not exceed RMB 339 million
(excluding tax), and the total amount of daily related transactions with Sichuan Changhong Electric Co.,Ltd. and its
holding subsidiaries (excluding Changhong Huayi) will not exceed RMB 14.22 billion (excluding tax).
Related searches for disclosure website of interim report with major related transaction concerned
Interim report Disclosure date Website for disclosure
Resolution Notice of the 27th session of 10thBOD (2022-087)
Resolution Notice of the 19th session of 10thBOS (2022-088)
Announcement on the daily related transactions of 2023（2022-089）
December 7,2022 and
Notice on Expected Continuing Related Transactions with Sichuan www.cninfo.com.cn
December 23,2022
Changhong Group Finance Company in 2023 (2022-90)
Resolution Notice of Fourth extraordinary general meeting of 2022
(2022-100)
Resolution Notice of the 29th session of 10thBOD (2022-097)
Resolution Notice of the 20th session of 10thBOS (2022-098)
December 17,2022 www.cninfo.com.cn
Increase the forecast announcement of daily related party transactions
for year of 2022 (2022-099)
XV. 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
No leasing in the period
120
CHANGHONG MEILING CO.,LTD. Annual Report 2022
(ii) Major guarantee
√ Applicable □ Not applicable
121
CHANGHONG MEILING CO.,LTD. Annual Report 2022
In RMB 10,000
Particulars about the external guarantee of the Company and subsidiaries (Barring the guarantee for subsidiaries)
Compl
Guara
Counter ete
Name of the Collateral ntee
Related Announcement Actual date of Actual guarantee guarantee Guarantee imple
Company Guarantee limit Guarantee type (if for
disclosure date happening limit (if term mentat
guaranteed applicable) related
applicable) ion or
party
not
- - - - - - - - - - -
Total approving external guarantee in report period (A1) 0 Total actual occurred external guarantee in report period (A2) 0
Total actual balance of external guarantee at the end of report period
Total approved external guarantee at the end of report period ( A3) 0 0
(A4)
Guarantee between the Company and the subsidiaries
Compl
Guara
Counter ete
Name of the Collateral ntee
Related Announcement Actual date of Actual guarantee guarantee Guarantee imple
Company Guarantee limit Guarantee type (if for
disclosure date happening limit (if term mentat
guaranteed applicable) related
applicable) ion or
party
not
Joint liability
March 26,2021 13,000.00 Yes 1 year Yes No
guaranty
Joint liability
Announcement No.: March 29,2021 18,000.00 Yes 1 year Yes No
guaranty
2020-097,2020-
Zhongshan
098,2020-101and 2020- Joint liability
Changhong 140,000.00 March 30,2021 20,000.00 N/A Yes 1 year Yes No
107 released on guaranty
Electric Co., Ltd.
December 12,2020 and
December 30,2020 Joint liability
April 1,2021 20,000.00 Yes 11.5 months Yes No
guaranty
Joint liability
April 6,2021 9,000.00 Yes 1 year Yes No
guaranty
122
CHANGHONG MEILING CO.,LTD. Annual Report 2022
Joint liability
May 25,2021 10,000.00 Yes 1 year Yes No
guaranty
Joint liability
July 20,2021 5,000.00 Yes 1 year Yes No
guaranty
Joint liability
August 19,2021 5,000.00 Yes 1 year Yes No
guaranty
Joint liability
August 27,2021 15,000.00 Yes 1 year Yes No
guaranty
Joint liability
March 10,2022 2,000.00 Yes 1 year No No
guaranty
Joint liability
March 28,2022 7,000.00 Yes 1 year No No
guaranty
Joint liability
April 22,2022 18,000.00 Yes 1 year No No
guaranty
Joint liability
Announcement No.: May 6,2022 6,000.00 Yes 1 year No No
guaranty
2021-091,2021-
092,2021-096 and2021- Joint liability
140,000.00 June 10,2022 10,000.00 Yes 1 year No No
109 released on guaranty
December 7, 2021 and
December 24, 2021 Joint liability
June 25,2022 13,000.00 Yes 1 year No No
guaranty
Joint liability
July 2,2022 20,000.00 Yes 1 year No No
guaranty
Joint liability
August 19,2022 5,000.00 Yes 1 year No No
guaranty
Joint liability
October 11,2022 15,000.00 Yes 1 year No No
guaranty
Announcement No.:
2022-087,2022-
088,2022-091 and 2022-
150,000.00 - - - - - - -
100 released on
December 7,2022 and
December 23, 2022
Changhong Joint liability
Announcement No.: 30,000.00 March 31,2021 4,000.00 Yes 1 year Yes No
MeilingRidian guaranty
123
CHANGHONG MEILING CO.,LTD. Annual Report 2022
Technology Co., 2020-097,2020- Joint liability
Ltd. 098,2020-101 and 2020- September 22,2021 3,000.00 Yes 1 year Yes No
guaranty
107 released on
December 12,2020 and Joint liability
October 19,2021 4,000.00 Yes 1 year Yes No
December 30,2020. guaranty
Joint liability
June 6,2022 3,000.00 Yes 1 year No No
guaranty
Announcement No.:
2021-091,2021- Joint liability
July 7,2022 4,000.00 Yes 1 year No No
092,2021-096 and 2021- guaranty
16,000.00
109 released on Joint liability
December 7,2021 and October 25,2022 2,000.00 Yes 1 year No No
guaranty
December 24,2021.
Joint liability
December 8,2022 3,500.00 Yes 11.2 months No No
guaranty
Announcement No.:
2022-087,2022-
088,2022-091 and 2022-
16,000.00 - - - - - - -
100 released on
December 7,2022 and
December 23, 2022.
Announcement No.: Joint liability
2020-097,2020- May 24,2021 5,000.00 Yes 1 year Yes No
guaranty
098 ,2020-101 and
26,000.00
2020-107 released on Joint liability
December 12, 2020 and September 26,2021 6,000.00 Yes 1 year Yes No
guaranty
December 30,2020
Announcement No.: Joint liability
ZhongkeMeiling 2021-091,2021- September 20,2022 2,000.00 Yes 4.5 months No No
guaranty
Cryogenic 092,2021-096 and 2021-
26,000.00
Technology Co., 109 released on Joint liability
Ltd. December 7,2021 and November 14,2022 5,000.00 Yes 7.2 months No No
guaranty
December 24, 2021.
Announcement No.:
2022-087,2022-
088,2022-091 and 2022-
20,000.00 - - - - - - -
100 released on
December 7, 2022 and
December 23, 2022
Sichuan Joint liability
Announcement No.: 100,000.00 September 24,2021 5,000.00 Yes 1 year No No
Changhong Air- guaranty
124
CHANGHONG MEILING CO.,LTD. Annual Report 2022
conditioner Co., 2020-097,2020-
Ltd. 098,2020-101 and 2020-
107 released on Joint liability
December 7,2021 15,000.00 Yes 1 year No No
December 12, guaranty
2020 and December
30,2020
Announcement No.: Joint liability
2021-091,2021- March 18,2022 8,000.00 Yes 1 year No No
guaranty
092,2021-096 and 2021-
100,000.00
109 released on Joint liability
December 7, 2021 and April 18,2022 30,000.00 Yes 1 year No No
guaranty
December 24, 2021
Announcement No.:
2022-087,2022-
088,2022-091 and 2022-
250,000.00 - - - - - - -
100 released on
December 7, 2022 and
December 23, 2022
Announcement No.:
Changhong 2022-036，2022-037
注
RUBA Trade and 2022-049 released 5,955.93 - - - - - - -
Company on May 18,2022 and
June 30, 2022
Announcement No.:
2020-097,2020-
098,2020-101 and 2020- Joint liability
10,000.00 July 8,2021 10,000.00 Yes 1 year Yes No
107 released on guaranty
December 12, 2020 and
December 30, 2020
Announcement No.:
Jiangxi Meiling 2021-091,2021-
Electric 092,2021-096 and 2021-
15,000.00 - - - - - - -
Appliance Co., 109 released on
Ltd. December 7, 2021 and
December 24, 2021
Announcement No.:
2022-087,2022-
088,2022-091 and 2022-
15,000.00 - - - - - - -
100 released on
December 7, 2022 and
December 23, 2022.
Announcement No.:
Hefei Meiling
2021-091,2021-092 and 3,000.00 - - - - - - -
Nonferrous Metal
2021-096 released on
125
CHANGHONG MEILING CO.,LTD. Annual Report 2022
Products Co., December , 2021 and
Ltd. December 24, 2021
Announcement No.：
2022-087,2022-
088,2022-091 and 2022- 3,000.00 - - - - - - -
100 released on
December 7, 2022 and
December 23, 2022
Announcement No.:
2020-097,2020-
098,2020-101 and 2020- Joint liability
50,000.00 March 5,2021 5,000.00 Yes 1 year Yes No
107 released on guaranty
December 12, 2020 and
December 30,2020
Announcement No.:
2021-091,2021-
Hefei Meiling
092,2021-096 and 2021- Joint liability
Group Holdings 40,000.00 April 18,2022 5,000.00 Yes 1 year No No
109 released on guaranty
Limited
December 7, 2021 and
December 24, 2021
Announcement No.:
2022-087,2022-
088,2022-091and 2022-
60,000.00 - - - - - - -
100 released on
December 7, 2022 and
December 23, 2022
Joint liability
July 28,2021 2,000.00 Yes 1 year Yes No
guaranty
Joint liability
Announcement No.: July 29,2021 5,000.00 Yes 1 year Yes No
guaranty
2021-008,2021-
Hefei Changhong 009,2021-011 and 2021- Joint liability
35,000.00 August 30,2021 5,000.00 Yes 1 year Yes No
Meiling Life 034 released on March guaranty
Appliances Co., 3, 2021 and April 29,
2021 Joint liability
Ltd. October 13,2021 2,000.00 Yes 1 year Yes No
guaranty
Joint liability
December 9,2021 4,000.00 Yes 11 months No No
guaranty
Joint liability
Announcement No.: 35,000.00 January 26,2022 3,000.00 Yes 1 year No No
guaranty
126
CHANGHONG MEILING CO.,LTD. Annual Report 2022
2021-091,2021- Joint liability
092,2021-096 and 2021- March 17,2022 5,000.00 Yes 1 year No No
guaranty
109 released on
December 7, 2021 and Joint liability
March 21,2022 5,000.00 Yes 5 months Yes No
December 24, 2021 guaranty
Joint liability
August 25,2022 500.00 Yes 1 year No No
guaranty
Joint liability
September 8,2022 1,000.00 Yes 1 year No No
guaranty
Joint liability
September 22,2022 5,000.00 Yes 1 year No No
guaranty
Joint liability
November 11,2022 5,000.00 Yes 1 year No No
guaranty
Joint liability
December 8,2022 4,500.00 Yes 10.5 months No No
guaranty
Announcement No.:
2022-087,2022-
088,2022-091 and 2022-
35,000.00 - - - - - - -
10 released on
December 7, 2022 and
December 23, 2022
Total amount of approving guarantee for subsidiaries in report Total amount of actual occurred guarantee for subsidiaries in report
554,955.93 377,500.00
period (B1) period (B2)
Total amount of approved guarantee for subsidiaries at the end of Total balance of actual guarantee for subsidiaries at the end of reporting
1,046,955.93 206,500.00
reporting period (B3) period (B4)
Guarantee of the subsidiaries for the subsidiaries
Compl
Guara
Counter ete
Name of the Collateral ntee
Related Announcement Actual date of Actual guarantee guarantee Guarantee imple
Company Guarantee limit Guarantee type (if for
disclosure date happening limit (if term mentat
guaranteed applicable) related
applicable) ion or
party
not
Anhui Touxing Announcement No.:
Joint liability
Technology Co., 2021-013,2021- 6,000.00 April 30,2021 500 - - 11 months Yes No
guaranty
Ltd. 014,2021-021 and 2021-
127
CHANGHONG MEILING CO.,LTD. Annual Report 2022
034 released on March
31 2021 and April 29,
2021
Announcement No.:
2021-091,2021-092 and
Joint liability
2021-096 released on 5,000.00 June 27,2022 500 - - 1 year No No
guaranty
December 7, 2021 and
December 23, 2021
Announcement No.:
2022-087,2022-
088,2022-091 and 2022-
8,000.00 - - - - - - - -
100 released on
December 7, 2022 and
December 23, 2022.
Announcement No.:
2021-091,2021-
092,2021-096 and 2021-
5,000.00 - - - - - - - -
109 released on
Anhui Ling'an December 7,2021 and
Medical December 24, 2021
Equipment Co., Announcement No.:
Lt 2022-087,2022-
088,2022-091 and 2022-
12,000.00 - - - - - - - -
100 released on
December 7, 2022 and
December 23, 2022
Total amount of approving guarantee for subsidiaries in report Total amount of actual occurred guarantee for subsidiaries in report
20,000.00 1,000.00
period (C1) period (C2)
Total amount of approved guarantee for subsidiaries at the end of Total balance of actual guarantee for subsidiaries at the end of reporting
25,000.00 500.00
reporting period (C3) period (C4)
Total amount of guarantee of the Company (total of three abovementioned guarantee)
Total amount of actual occurred guarantee in report period
Total amount of approving guarantee in report period (A1+B1+C1) 574,955.93 378,500.00
(A2+B2+C2)
Total amount of approved guarantee at the end of report period Total balance of actual guarantee at the end of report period
1,071,955.93 207,000.00
(A3+B3+C3) (A4+B4+C4)
Ratio of actual guarantee (A4+B4+C4) in net assets of the Company 40.05%
Including:
128
CHANGHONG MEILING CO.,LTD. Annual Report 2022
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 70% directly or indirectly (E) 129,000.00
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) 129,000.00
Explanations on possibly bearing joint and several liquidating responsibilities for undue guarantees (if applicable) N/A
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 April 30, 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. During the reporting period, the highest level of security the Company
provided amounted to 10,469.5593 million yuan by the approval, the actual amount of guarantee is 3,775 million yuan. At the end of the reporting period, the practical
guarantee balance amounted to 2,065 million yuan, accounting for the Company’s latest net assets ratio of 39.96%.
The amount of effective guarantee provided by the approved subsidiaries of the Company to the subsidiaries is RMB 250 million, the actual amount of guarantee
is RMB 10 million, and the actual guarantee balance provided by the subsidiaries to the subsidiaries is RMB 5 million, accounting for 0.10% of the Company's latest
net assets.
Explanation on guarantee with composite way: Not applicable
129
CHANGHONG MEILING CO.,LTD. Annual Report 2022
(iii) Entrust others to cash asset management
1. Trust financing
√ Applicable □ Not applicable
Trust financing in the period
In RMB 10,000
Impairment amount
Undue
Type Capital resources Amount for entrust Overdue amount for overdue financial
balance
management
Bank financing
Own idle funds 60,000.00 0 0 0
products
Total 60,000.00 0 0 0
Details of the single major amount, or high-risk trust investment with low security, poor fluidity
√ Applicable □ Not applicable
130
CHANGHONG MEILING CO.,LTD. Annual Report 2022
In RMB 10,000
Amou
nt of
reserv Wheth
Whether
Anticipa e for er
Refere Actual has
Trustee ted Actual devalu approv
Source Criteria nce collected entrust Summary of the items
institution Truste Product Expiry income gains/los ation ed by
Amount of Start date Capital investment purpose for fixing annual gains/los finance and related query index
(or name of e type type date (if ses in of legal
funds reward rate of ses in plan in (if applicable)
trustee) applicab period withdr proced
return period the
le) awing ure
future
(if (Y/N)
applic
able)
This product is an embedded financial
derivatives of RMB structured deposits, the
bank invests the raised structured deposits
funds in fixed deposit of the bank, at the same
Principal
China time, the bank invests it in financial derivative
-
Everbright Idle transactions (including but not limited to Not Not
Bank Co., Bank guarante 7,000.00 own
January April
options and swaps and other derivatives) in
Agreemen
3.45% applicab 60.38 60.38 N/A Yes applicab
(www.cninfo.com.cn)(20
ed with 11,2022 11,2022 t 22-003)
Ltd., Hefei funds domestic or international financial markets le le
floating
Branch with the upper limit of the income of the time
income
deposit, the sum of the profit and loss of the
financial derivative transaction investment
and the bank deposit interest constitutes the
income of the structured deposit product.
Principal
Hefei - This product is a structured deposit product,
Idle Not Not
Branch of Bank guarante January April the derivative product of which is linked to Agreemen (www.cninfo.com.cn)(20
3,000.00 own 3.21% applicab 23.75 23.75 N/A Yes applicab
Industrial ed with 12,2022 12,2022 the morning benchmark price of Shanghai t 22-003)
funds le le
Bank floating Gold Exchange on the observation date.
income
Hefei Principal This product is a structured deposit product,
Luyang - and its derivative product is linked to the spot
Idle Not Not
Branch of Bank guarante January April exchange rate of the Euro against the US Agreemen (www.cninfo.com.cn)(20
1,000.00 own 3.3% applicab 8.16 8.16 N/A Yes applicab
Bank of ed with 14,2022 14,2022 dollar published on the Bloomberg page t 22-003)
funds le le
Hangzhou floating "BFIX" at 14:00 Beijing time on the
Co., Ltd. income observation date.
131
CHANGHONG MEILING CO.,LTD. Annual Report 2022
Principal
Hefei - This product is a structured deposit product,
Idle Not Not
Branch of Bank guarante January April the derivative product of which is linked to Agreemen (www.cninfo.com.cn)(20
1,000.00 own 3.21% applicab 7.92 7.92 N/A Yes applicab
Industrial ed with 14,2022 14,2022 the morning benchmark price of Shanghai t 22-004)
funds le le
Bank floating Gold Exchange on the observation date.
income
Principal Principal of the structured deposit is included
Zhongshan - in the unified fund operation and management
Idle Not Not "(www.cninfo.com.cn)
Branch of Bank guarante January April of Guangdong Development Bank, returns on Agreemen
5,000.00 own 3.80% applicab 46.85 46.85 N/A Yes applicab
Guangfa ed with 28,2022 28,2022 the structured deposit from investors depend t (2022-006）"
funds le le
Bank floating on the performance of gold during the
income 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 separating
Principal
Zhongshan basic deposits from derivative transactions.
-
Branch of Idle The raised principal will be included in the Not Not (www.cninfo.com.cn)
Bank of Bank guarante 5,000.00 own
March June
internal fund of Bank of Communications for
Agreemen
3.20% applicab 42.08 42.08 N/A Yes applicab
ed with 2,2022 6,2022 t (2022-009）
Communica funds unified operation and management, and will le le
floating
tions be included in the payment scope of deposit
income
reserve fund and deposit insurance. The
embedded derivative part of products will be
linked to the exchange rate, interest rate,
commodity and index, etc.
This product is an embedded financial
derivatives of RMB structured deposits, the
bank invests the raised structured deposits
funds in fixed deposit of the bank, at the same
Principal
Hefei time, the bank invests it in financial derivative
-
Branch of Idle transactions (including but not limited to Not Not
China Bank guarante 8,000.00 own
April July
options and swaps and other derivatives)in
Agreemen
3.55% applicab 71.00 71.00 N/A Yes applicab
(www.cninfo.com.cn)(20
ed with 15,2022 15,2022 t 22-027)
Everbright funds domestic or international financial markets le le
floating
Bank with the upper limit of the income of the time
income
deposit, the sum of the profit and loss of the
financial derivative transaction investment
and the bank deposit interest constitutes the
income of the structured deposit product.
Hefei Principal This product is a structured deposit product,
Luyang - and its derivative product is linked to the spot
Not Not
Branch of Bank guarante May August exchange rate of the Euro against the US Agreemen (www.cninfo.com.cn)(20
2,000.00 3.04% applicab 15.49 15.49 N/A Yes applicab
Bank of ed with 25,2022 26,2022 dollar published on the Bloomberg page t 22-039)
le le
Hangzhou floating "BFIX" at 14:00 Beijing time on the
Co., Ltd. income observation date.
132
CHANGHONG MEILING CO.,LTD. Annual Report 2022
Principal
Hefei High-
-
tech zone Idle This product is a structured deposit product, Not Not
Branch of Bank guarante 2,000.00 own
May November
the structured derivatives of which are linked
Agreemen
3.70% applicab 37.30 37.30 N/A Yes applicab
(www.cninfo.com.cn)(20
ed with 25,2022 25,2022 t 22-039)
Huaxia funds to the CSI 500 index. le le
floating
Bank
income
Principal of the structured deposit is included
in on-balance sheet accounting and managed
in accordance with the deposit, and included
Hefei in the payment range payment of deposit
Principal
Science and reserves and deposit insurance premiums,
-
Technology Idle relevant assets are capitalized and provided Not Not
Sub-branch Bank guarante 2,000.00 own
May November
for in line with the relevant regulations of
Agreemen
3.50% applicab 34.52 34.52 N/A Yes applicab
(www.cninfo.com.cn)(20
ed with 27,2022 23,2022 t 22-039)
of Bank of funds banking supervision institutions of the State le le
floating
Dongguan Council. The ultimate actual return of
income
Co., Ltd. structured deposits depends on the
performance of underlying markets and is
influenced by a variety of factors in the
market.
Principal Principal of the structured deposit is included
Zhongshan
- in the unified operation and management of
Shiqi Idle Not Not
Branch of Bank guarante 2,000.00 own
May November Guangdong Development Bank, investor’s Agreemen
3.30% applicab 32.55 32.55 N/A Yes applicab
(www.cninfo.com.cn)(20
ed with 27,2022 23,2022 returns from the structured deposit depend on t 22-040)
Guangfa funds le le
floating the performance of CSI 500 during the
Bank
income observation period
Zhongshan Principal Principal of the structured deposit is included
Branch of - in the unified fund operation and management
Idle Not Not (www.cninfo.com.cn)
China Bank guarante September December of Guangdong Development Bank, returns on Agreemen
5,000.00 own 3.35% applicab 41.30 41.30 N/A Yes applicab
Guangfa ed with 16,2022 15,2022 the structured deposit from investors depend t (2022-071）"
funds le le
Bank Co., floating on the performance of gold during the
Ltd. income observation period
Hefei Principal This product is a structured deposit product,
Luyang - and its derivative product is linked to the spot
Idle Not Not
Branch of Bank guarante September December exchange rate of the Euro against the US Agreemen (www.cninfo.com.cn)(20
2,000.00 own 2.88% applicab 14.36 14.36 N/A Yes applicab
Bank of ed with 23,2022 23,2022 dollar published on the Bloomberg page t 22-073)
funds le le
Hangzhou floating "BFIX" at 14:00 Beijing time on the
Co., Ltd. income observation date.
Principal 。This product is a structured deposit
- product, and its derivative products are linked
Chengdu Idle Not Not
Branch of Bank guarante 10,000.00 own
September December to the "Bond Pass" green financial bond of Agreemen
3.25% applicab 80.14 80.14 N/A Yes applicab
(www.cninfo.com.cn)(20
ed with 23,2022 22,2022 China Development Bank in the first phase of t 22-073)
Bohai Bank funds le le
floating 2021 (bond abbreviation: 21 GKLZ 01, bond
income code: 2102001.IB).
133
CHANGHONG MEILING CO.,LTD. Annual Report 2022
Principal
This deposit product is an RMB break-even
Hefei -
Idle floating income product, and the product Not Not
Branch of Bank guarante September December Agreemen (www.cninfo.com.cn)(20
2,000.00 own income includes fixed income and floating 3.02% applicab 13.90 13.90 N/A Yes applicab
Industrial ed with 30,2022 23,2022 t 22-074)
funds income, in which the floating income is le le
Bank floating
linked to the fluctuation of the linked target.
income
Principal
The structured deposits are included in the
-
HefeiBranc Idle payment scope of deposit reserve and deposit Not Not
h of SPD Bank guarante 3,000.00 own
November December
insurance premium in accordance with
Agreemen
2.85% applicab 7.36 7.36 N/A Yes applicab
(www.cninfo.com.cn)(20
ed with 7,2022 8,2022 t 22-084)
Bank funds deposit management and regulatory le le
floating
requirements,
income
Total 60,000.00 -- -- -- -- -- -- -- 537.06 -- -- -- -- --
Entrust financial expected to be unable to recover the principal or impairment might be occurred
□ Applicable √ Not applicable
2. Entrust loans
□ Applicable √ Not applicable
No entrust loans in the period.
(iv) Other material contracts
□ Applicable √ Not applicable
No other material contracts in the period.
134
CHANGHONG MEILING CO.,LTD. Annual Report 2022
XVI. Explanation on other significant events
√ Applicable □ Not applicable
1. 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.
2. 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.
3.After deliberated and approved by the 16th session of 10th BOD, the 13th session of 10th BOD and Annual General
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. In 2016, all the investment projects
of raised funds from the company's non-public offering of shares have been completed and have reached the
scheduled usable state, and the remaining funds are unpaid contract balance and quality guarantee fund. The
Company will still keep the special account for the raised funds until all the remaining contract balance and quality
guarantee fund (with a total amount of RMB 19,013,022.10 ) are paid, and the balance formed by the difference
between interest income and handling fee generated by the subsequent refinancing of this part of the funds will also
be used to permanently replenish the working capital, and then the special account for raising funds will be cancelled
as required.
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 31 March 2022,and 29 April 2022.
4.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
135
CHANGHONG MEILING CO.,LTD. Annual Report 2022
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 31 March 2022.
5. 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.
6. 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.
7.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
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.
8.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
136
CHANGHONG MEILING CO.,LTD. Annual Report 2022
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.
9.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.
10. 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
11. By the resolution passed at the 22nd meeting of the Tenth Board of Directors of the Company, it was agreed to
by-elect Mr. Zhao Qilin as a member of the Strategy Committee under the Tenth Board of Directors 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. 2022-062) on 18 August 2022.
12. By the resolution passed at the 22nd meeting of the Tenth Board of Directors of the Company, it was agreed
that the Company would donate RMB 150,000 to the People's Government of Songdian Town, Huoqiu County,
Lu'an City, Anhui Province, for the collective development project of the north and south four villages in Songdian
Town, Huoqiu County, so as to increase employment and strengthen the collective economy.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-
062 and 2022-065) on August 18,2022.
13. By the resolution passed at the 22nd meeting of the Tenth Board of Directors of the Company, according to the
Proposal on Amending Some Articles of Association approved by the General Meeting of Shareholders of the
Company on June 29, 2022, it was agreed to amend the relevant articles of the Rules of Procedure of the President
at the same time. 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. 2022-062) on August 18, 2022.
14. By the resolution passed at the 23rd meeting of the Tenth Board of Directors of the Company, it was agreed
that the Company would issue the Commitment on Trademark Authorization to its holding subsidiary Zhongke
137
CHANGHONG MEILING CO.,LTD. Annual Report 2022
Meiling. 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. 2022-068) on September 7, 2022.
15. By the resolution passed at the 24th meeting of the Tenth Board of Directors, it was agreed that the Company
would donate RMB 1 million for earthquake relief work in Luding County through Mianyang Charity Federation
to help the affected people tide over the difficulties and rebuild their homes. 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. 2022-069 and
2022-070) on September 8, 2022.
16. By the resolutions passed at the 25th meeting of the Tenth Board of Directors and the Fourth Extraordinary
General Meeting of Shareholders in 2022, it was agreed that the Company and its subsidiaries would apply for a
special credit line for RMB bill pool of maximum RMB 500 million from Hefei Branch of Huaxia Bank Co., Ltd.,
that of maximum RMB 600 million from Hefei Branch of Hangzhou Bank Co., Ltd., and that of maximum RMB 1
billion from Anhui Branch of Bank of Communications Co., Ltd., with a credit period of one year. The credit lines
are mainly used for special business of bill pools, and are pledged by bills.Found more on appointed media
“Securities Times”, “China Securities Journal” and Juchao Website (www.cninfo.com.cn) that the Company
disclosed in the form of announcement (Announcement No. 2022-081 and 2022-100) October 25, 2022 and
December 23, 2022.
17. During the reporting period, the information disclosure media designated by the company were changed from
Securities Times, China Securities Journal, Hongkong Commercial Daily and CNINF (www.cninfo.com.cn) to
Securities Times, China Securities Journal, and CNINF (www.cninfo.com.cn). Found more on appointed media
“Securities Times”, “China Securities Journal” and Juchao Website (www.cninfo.com.cn) that the Company
disclosed in the form of announcement (Announcement No. 2022-082) October 28, 2022.
18. By the resolution passed at the 26th meeting of the Tenth Board of Directors of the Company, it was agreed to
appoint Ms. Li Xia as the Chief Compliance Officer of the Company, with the term of office from the date of
deliberation and approval by the Board of Directors to the expiration of the term of the Tenth Board of Directors of
the Company. Found more on appointed media “Securities Times”, “China Securities Journal” and Juchao Website
(www.cninfo.com.cn) that the Company disclosed in the form of announcement (Announcement No. 2022-085 and
2022-086) on Novembe 26, 2022.
19. By the resolution passed at the 27th meeting of the Tenth Board of Directors, the 19th meeting of the Tenth
Board of Supervisors and the Fourth Extraordinary General Meeting of Shareholders in 2022, it was agreed that the
company would provide a total of RMB 5,690,000,000 of credit guarantee to its wholly-owned and holding
subsidiaries in 2023. The guarantee period is one year for the amount renewed in this year and the increased
guarantee amount beyond this year.Found more on appointed media “Securities Times”, “China Securities Journal”
and Juchao Website (www.cninfo.com.cn) that the Company disclosed in the form of announcement
(Announcement No. 2022-091 and 2022-100) on December 7, 2022 and Decenber 23, 2022.
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CHANGHONG MEILING CO.,LTD. Annual Report 2022
20. By the resolution passed at the 27th meeting of the Tenth Board of Directors of the Company and the Fourth
Extraordinary General Meeting of Shareholders in 2022, it was agreed that the Company and its subsidiaries can
use their own idle funds of no more than RMB 1.8 billion (which can be used in a rolling way) to invest in bank
wealth management products with high safety, good liquidity, low risk and stability within one year. The
authorization period is valid within one year from the date of deliberation and approval by the General Meeting of
Shareholders of the Company.Found more on appointed media “Securities Times”, “China Securities Journal” and
Juchao Website (www.cninfo.com.cn) that the Company disclosed in the form of announcement (Announcement
No. 2022-092 and 2022-100)) on December 7, 2022 and December 23, 2022.
21. By the resolution passed at the 27th meeting of the Tenth Board of Directors, 19th meeting of the Tenth Board
of Supervisors and the Fourth Extraordinary General Meeting of Shareholders in 2022, it was agreed that the
Company and Hefei Branch of Zheshang Bank Co., Ltd. would carry out asset pool business with a total amount of
no more than RMB 500 million, with a term of one year starting from the date of deliberation and approval by the
General Meeting of Shareholders of the Company. The specific term shall be subject to the term stipulated in the
relevant contract finally signed between the Company and Zheshang Bank Co., Ltd. Found more on appointed
media “Securities Times”, “China Securities Journal” and Juchao Website (www.cninfo.com.cn) that the Company
disclosed in the form of announcement (Announcement No. 2022-087 ,2022-93 and 2022-100)) on December 7,
2022 and December 23, 2022.
XVII. 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
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
139
CHANGHONG MEILING CO.,LTD. Annual Report 2022
approved the application of Zhongke Meiling to publicly issue shares to unspecified qualified investors and list
them, On September 16, 2022, Zhongke Meiling's application for registration of public offering of shares to
unspecified qualified investors was approved by China Securities Regulatory Commission. With the consent of
Beijing Stock Exchange, Zhongke Meiling shares were listed on Beijing Stock Exchange on October 18,
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. 2022-036, No.2022-038, No.2022-048 , No.2022-050, No.2022-056,No.2022-057,No.2022-
058,No.2022-060 2022-072 and 2022-076)) on 18 May 2022, 25 June ,30 June 2022, August 6, 2022 , September
19, 2022 and October 14,2022.
3.By the resolution passed at the 21st meeting of the Tenth Board of Directors, 16th meeting of the Tenth Board of
Supervisors and the Third Extraordinary General Meeting of Shareholders in 2022, it was agreed that Zhongke
Meiling, a subsidiary of the Company, would publicly issue shares to unspecified qualified investors and list on the
Beijing Stock Exchange; It was agreed that Zhongke Meiling, a subsidiary of the Company, would adjust its reserve
price in the specific plan of public offering of shares to unspecified qualified investors and listing on the Beijing
Stock Exchange, that is, from RMB 17/share to RMB 16/share; It was agreed to the adjusted plan of Zhongke
Meiling to publicly issue shares to unspecified qualified investors and list on the Beijing Stock Exchange. Found
more on appointed media “Securities Times”, “China Securities Journal” and Juchao Website (www.cninfo.com.cn)
that the Company disclosed in the form of announcement (Announcement No. 2022-036, No.2022-056, No.2022-
0057 and No.2022-066) on August 3, 3022 and August 20,2022.
4. During the reporting period, Hefei Changhong Meiling Electrical Appliance Co., Ltd., a subsidiary of the
Company, received a government subsidy of RMB 6,500,000.00 on September 30, 2022, accounting for 12.52% of
the Company's latest audited net profit attributable to shareholders of listed companies..Found more on appointed
media “Securities Times”, “China Securities Journal” and Juchao Website (www.cninfo.com.cn) that the Company
disclosed in the form of announcement (Announcement No. 2022-075) on October 10,2022.
140
CHANGHONG MEILING CO.,LTD. Annual Report 2022
VII .Changes in Shares and Particulars about Shareholders
I. Changes in Share Capital
(i) Changes in Share Capital
In Share
Before the Change Increase/Decrease in the Change (+, -) After the Change
B
Public
New o
reserve
share n
Proporti transfer Proporti
Amount s us Others Subtotal Amount
on into on
issue sh
share
d ar
capital
es
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 shares 5,409,233 0.52% 0 0 0 -625,214 -625,214 4,784,019 0.47%
Including: Domestic legal
3,884,551 0.37% 0 0 0 -521,012 -521,012 3,363,539 0.33%
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 foreign
0 0.00% 0 0 0 0 0 0 0.00%
shares
4. Others 0 0.00% 0 0 0 0 0 0 0.00%
100.00 100.00
III. Total shares 1,044,597,881 0 0 0 -14,674,166 -14,674,166 1,029,923,715
% %
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
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
141
CHANGHONG MEILING CO.,LTD. Annual Report 2022
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
In 2022, the Company realized a net profit of RMB 244,538,734.49 attributable to shareholders of the parent
company, and RMB 5,168,286,872.09 attributable to owners' equity of the parent company at the end of the
reporting period, based on the initial total share capital of 1,044,597,881 shares, corresponding to earnings per share
of RMB 0.2341 and net assets per share of RMB 4.95; based on the ending total share capital of 1,029,923,715
shares, corresponding to earnings per share of RMB 0.2374, and the net assets per share of RMB 5.02.
5. Implementation progress of reducing holdings of shares buy-back by centralized bidding
□ Applicable √ Not applicable
(ii) Changes of lock-up stocks
√ Applicable □ Not applicable
In Shares
Opening Shares Restricted Ending
Shareholders shares released in shares shares Restricted reasons Date for released
restricted Period increased restricted
142
CHANGHONG MEILING CO.,LTD. Annual Report 2022
in
Period
Statutory
Zhang Yong 104,202 0 104,202 0 commitment of the 2022-6-16
stock reform
Statutory
China Life Insurance (Group) Company 416,810 0 416,810 0 commitment of the 2022-6-16
stock reform
Statutory
China People's Insurance Group Co., Ltd. 625,216 0 625,216 0 commitment of the 2022-6-16
stock reform
Magang Community Resident Committee Statutory
of Longgang Integrated Economic 104,202 0 104,202 0 commitment of the 2022-6-16
Development Zone, Hefei stock reform
Total 1,250,430 0 1,250,430 0 -- --
II. Securities issuance and listing
(i) Security offering in reporting period (Not including preferred stock)
□ Applicable √ Not applicable
(ii) Explanation on changes of total shares, shareholders structure and assets & liability structures
√Applicable □Not applicable
At the 40th meeting of the Ninth Board of Directors, the 21st meeting of the Ninth Board of Supervisors and
the Third Extraordinary General Meeting of Shareholders in 2020 held on July 27 and August 18, 2020, the Proposal
on Repurchase of Some Domestic Listed Foreign Shares (B Shares) of the Company was deliberated and passed. In
order to continue to implement the B-share repurchase, the Company held the 11th meeting of the Tenth Board of
Directors, the 9th meeting of the Tenth Board of Supervisors and the Third Extraordinary General Meeting of
Shareholders in 2021 on August 24, 2021 and September 10, 2021, and deliberated and passed the Proposal on
Continuing to Implement and Partially Adjust the Plan for Repurchasing Some Domestic Listed Foreign Shares (B-
shares) of the Company.
During the reporting period, the Company completed the cancellation procedures of 14,674,166 domestically
listed foreign-funded shares (B shares) repurchased. After deliberation and approval at the 2021 Annual General
Meeting of Shareholders held on April 28, 2022, the total share capital of the Company was reduced from
1,044,597,881 shares to 1,029,923,715 shares.
(iii) Current shares held by internal staffs
□ Applicable √ Not applicable
III. Particulars about shareholder and actual controller of the Company
(i) Amount of shareholders of the Company and particulars about shares holding
In Share
143
CHANGHONG MEILING CO.,LTD. Annual Report 2022
Total common Total preference shareholders
Total preference shareholders
Total shareholders at end with voting rights recovered
with voting rights recovered
shareholders at 58,165 of last month before 50,370 0 at end of last month before 0
at end of reporting period (if
end of the Period annual report annual report disclosed (if
applicable)
disclosed applicable)
Particulars about shares held above 5% by shareholders or top 10 shares holding
Information of
shares
Amount pledged,
Proporti Total
of Amount of un-
Nature of on of shareholders Changes in tagged or
Full name of Shareholders restricte restricted
shareholder shares at the end of report period
d shares shares held frozen
held report period
held
State
Amou
of
nt
share
State-owned 24.12% 248,457,724 0 0 248,457,724
Sichuan Changhong Electric Co., Ltd. - -
legal person
Hefei Industry Investment Holding (Group) Co., State-owned 4.64% 47,823,401 0 0 47,823,401 - -
Ltd. legal person
Foreign legal 2.63% 27,077,797 0 0 27,077,797
CHANGHONG (HK) TRADING LIMITED - -
person
Ma Guobin Domestic 1.63% 16,813,460 +5,706,960 0 16,813,460
- -
nature person
CAO SHENGCHUN Foreign nature 1.43% 14,766,086 0 0 14,766,086
- -
person
Xu Aiyun Domestic 1.36% 14,038,200 +11,713,300 0 14,038,200
- -
nature person
Caitong Fund- Ningbo Bank-Haitong Xingtai Domestic non- 1.04% 10,733,452 0 0 10,733,452
(Anhui) Emerging Industry Investment Fund state-owned - -
(Limited Partnership) legal person
Wang Xinzhong Domestic 0.94% 9,679,840 +5,744,900 0 9,679,840
- -
nature person
Wang Kai Domestic 0.62% 6,380,392 +6,380,392 0 6,380,392
- -
nature person
Philip Securities (H.K.) Co., Ltd. Foreign legal 0.61% 6,296,913 0 0 6,296,913
- -
person
Strategy investors or general legal person becomes top 10 shareholders due to rights issued (if applicable) Not 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 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
Explanation on associated Information Disclosure of Shareholder Equity Changes of Listed Companies among Sichuan Changhong, Hong
relationship among the Kong Changhong and other top 7 shareholders （Excluding Phillip Securities (Hong Kong) Co., Ltd.); “Caitong
aforesaid shareholders
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 voting rights and abstention from
Not Applicable
voting rights.
Special note on the repurchase account among the top 10 shareholders (if applicable) Not Applicable
Particular about top ten shareholders with un-restrict shares held
144
CHANGHONG MEILING CO.,LTD. Annual Report 2022
Amount of Type of shares
unrestricted
Shareholders’ name
shares held at Type Amount
end of Period
248,457,724 RMB ordinary 248,457,724
Sichuan Changhong Electric Co., Ltd.
shares
47,823,401 RMB ordinary 47,823,401
Hefei Industry Investment Holding (Group) Co., Ltd.
shares
CHANGHONG (HK) TRADING LIMITED 27,077,797 Domestically listed 27,077,797
foreign share
Ma Guobin 16,813,460 RMB ordinary 16,813,460
shares
CAO SHENGCHUN 14,766,086 Domestically listed 14,766,086
foreign share
Xu Aiyun 14,038,200 RMB ordinary 14,038,200
shares
Caitong Fund- Ningbo Bank-Haitong Xingtai (Anhui) Emerging Industry Investment Fund 10,733,452 RMB ordinary 10,733,452
(Limited Partnership) shares
Wang Xinzhong 9,679,840 RMB ordinary 9,679,840
shares
Wang Kei 6,380,392 RMB ordinary 6,380,392
shares
Philip Securities (H.K.) Co., Ltd. 6,296,913 Domestically listed 6,296,913
foreign share
Expiation on associated relationship or consistent actors within the top 10 un-restrict Found more in “Particulars about shares held above
shareholders and between top 10 un-restrict shareholders and top 10 shareholders 5% by shareholders or top 10 shares holding”
As of December 31, 2022, among the top 10 common shareholders, Ma Guobin holds 14,173,760 shares of the
Company through customer credit trading secured account of Founder Securities Co., Ltd., and 2,639,700
Explanation on top ten common
shares hold through common securities account, thus 16,813,460 shares of the Company are held in total. The
shareholders involving margin
shareholder-Wang Xinzhongi holds 9,679,840 shares of the Company through customer credit trading secured
business (if applicable)
account of Sinolink Securities Co., Ltd., The shareholder-Wang Kaii holds 6,380,392 shares of the Company
through customer credit trading secured account of Sinolink Securities Co., Ltd.
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.
(ii) Controlling shareholder of the Company
1. Nature of controlling shareholders: local state-owned holding
2. Type of controlling shareholders: legal person
Controlling Legal Dated Organization Main business
145
CHANGHONG MEILING CO.,LTD. Annual Report 2022
shareholders’ rep./person in founded code
name charge of unit
Manufacturing of household appliances; Sales of household appliances; Repair of
household appliances; Manufacturing of intelligent on-board equipment; Sales of
intelligent vehicle equipment; Sales of electronic products; Sales of spare parts for
household appliances; Communication equipment manufacturing; Communication
equipment sales; General equipment repair; Professional repair of communication
transmission equipment; Lighting fixture manufacturing; Sales of lighting appliances;
Household goods manufacturing; Sales of household goods; Daily product repair;
Manufacturing of computer software, hardware, and peripheral equipment; Retail of
computer software and hardware and auxiliary equipment; Wholesale of computer
software and hardware and auxiliary equipment; Computer and office equipment
maintenance; Manufacturing of special equipment for electrical machinery; Sales of
mechanical equipment; Special equipment repair; Manufacturing of mechanical and
electrical equipment; Sales of electrical equipment; Sales of electric power facilities
and equipment; Manufacturing of refrigeration and air conditioning equipment; Sales
of refrigeration and air conditioning equipment; Digital video monitoring system
manufacturing; Manufacturing of metal chains and other metal products; Sales of
metal products; Repair of metal products; Instrument manufacturing; Sales of
instruments and meters; Repair of instruments and meters; Manufacturing of cultural
and office equipment; Sales of office supplies; Retail of sports goods and equipment;
Sichuan
Wholesale of sports goods and equipment; Stationery retail; Wholesale of stationery
Changhong
Zhao Yong April 91510700205 supplies; Housing rental; Non residential real estate leasing; Leasing services
Electric Co., 8,1993 412308D
(excluding licensed leasing services); Integrated circuit design; Integrated circuit
Ltd.
sales; Software development; Software sales; Business management consulting; Real
estate development and operation; Construction engineering construction; Information
technology consulting services; Financial consultation; Sales of chemical products
(excluding licensed chemical products); Import and export of goods; Sales of
construction materials; Sales of high-performance nonferrous metals and alloy
materials; Sales of metal materials; Sales of plastic products; Sales of packaging
materials and products; Sales of mechanical and electrical equipment; Sales of metal
chains and other metal products; Auto parts retail, auto parts wholesale; Wholesale of
electronic components; Retail of electronic components; Category I value-added
telecommunications services; Category II value-added telecommunications services;
Business agency services; Advertising production; Advertising design and agency;
Advertising; Production and operation of radio and television programs; Internet
information services; Photography and video production services; Production of
audio-visual products; Intelligent unmanned aerial vehicle manufacturing; Sales of
intelligent unmanned aerial vehicles; Manufacturing of broadcast and television
equipment (excluding broadcast and television transmission equipment);
Manufacturing of audio equipment; Sales of audio equipment (ultimately subject to
the business scope registered by the industrial and commercial administration
authority).
Equity controlling and 1. As of December 31,2022, Sichuan Changhong directly holds 212,994,972 shares of Changhong Huayi Compressor
jointly of other
146
CHANGHONG MEILING CO.,LTD. Annual Report 2022
foreign/domestic listed Co., Ltd. (Stock code: 000404)- a company listed on the main board of the Shenzhen Stock Exchange, accounting for
company by controlling
30.60% of the equity of Changhong Huayi Compressor Co., Ltd.
shareholder in reporting
period 2. As of December 2022, Sichuan Changhong directly and indirectly holds 1,990,518,000 ordinary shares and preferred
shares in total of Changhong Jiahua Holdings Co., Ltd. (Stock code: 03991) - a company listed on the main board of
Hong Kong Stock Exchange, accounting for 77.44% of the whole ordinary shares and preferred shares under the name
of Changhong Jiahua Holdings Co., Ltd.
3.As of December 31, 2022, Sichuan Changhong directly holds 68,000,000 shares of Sichuan Changhong Minsheng
Logistics Co., Ltd (stock code:836237)- the company with shares transferring in National Equities Exchange and
Quotations, accounting for 70.274% of the equity of Sichuan Changhong Minsheng Logistics Co., Ltd.
3. Controlling shareholder changes in reporting period
□ Applicable √ Not applicable
Controlling shareholder stays the same in Period.
(iii) Actual controller of the Company and its person acting in concert
1. Nature of actual controller: local state-owned assets management
2. Type of actual controller: legal person
Legal
Dated
Actual controller rep./person in Organization code Main business
founded
charge of unit
State-owned Assets Supervision &
Administration Commission of Mianyang
Municipality is entrusted by the same level
State-owned Assets Supervision &
government, together performs decision-making
Administration Commission of Mianyang -- -- --
and management of state-owned asset owners,
Municipality
and is one organization which executes
comprehensive management and supervision on
its belonged state-owned assets.
Equity controlling of other
foreign/domestic listed company by Not Applicable
actual controller in reporting period
3. Changes of actual controller in Period
□ Applicable √ Not applicable
Actual controller stays the same in Period
4. Property rights and the block diagram of the control relationship between the Company and the actual control
(ended as 31st December 2022)
State-owned Assets Supervision & Sichuan Provincial Finance Department
Administration Commission of Mianyang
Municipality
147
CHANGHONG MEILING CO.,LTD. Annual Report 2022
90%
10%
%
Sichuan Changhong Electronics Holding Group Co., Ltd.
23.22%
%
Sichuan Changhong Electric Co., Ltd.
100%
四川省绵阳 24.12%
CHANGHONG (HK) TRADING LIMITED
市虹欢科技
四川省
有限责任公 绵阳市
3.24%司
虹欢科
%
技有限
Changhong% Meiling Co., Ltd. 责任公
司
%
5. Actual controller controlling the Company by means of entrust or other assets management
□ Applicable √ Not applicable
(iv) The total number of shares pledged by controlling shareholders or the first majority shareholder and
its persons acting in concert accounts for 80% of the shares held by them
□ Applicable √ Not applicable
(v)Other legal person’s shareholders with over ten percent shares held 10%.
□ Applicable √ Not applicable
(vi) Actual controller controlling the Company by means of entrust or other assets management
□ Applicable √ Not applicable
IV. The specific implementation of shares repurchased/buy-back during the reporting period
(i) Implementation progress of shares buy-back
√ Applicable □ Not applicable
148
CHANGHONG MEILING CO.,LTD. Annual Report 2022
The ratio of the number
Quantity of shares repurchased
Percentage of Proposed
Scheme disclosure Number of shares to be Amount to be repurchased/b to the underlying shares
total share repurchase/buy-back Purpose
time repurchased/buy-back repurchased/buy-back uy-back involved in the equity
capital period
(shares) incentive plan (if
applicable)
Buy-back of the B-share will be
Not less than 50 million yuan
July 28,2020 anf 25,074,181 shares,;- August 18, 2020 and canceled in accordance with the laws
2.40%-4.80% and not more than 100 million 14,674,166 -
August 25,2021 50,148,363kshares February 18, 2022 and registered capital of the Company
yuan.
will be reduced accordingly
Note: The company’s 40th session of the 9thBOD, the 21st session of the 9thBOS, and the 3rd extraordinary general meeting of shareholders in 2020 held on July 27,
2020 and August 18, 2020 deliberated and approved the Proposal on the Repurchase of Part of Domestically Listed Foreign Shares (B Shares) of the Company. With
purpose of continuing the implementation of B-share repurchase, the Continue Implementation and Adjustment Partially of the Repurchase Program of Certain
Domestic Listed Foreign Shares (B Share) was deliberated and approved by the 11th session of 10th BOD, 9th session of 10th BOS and Third Extraordinary Shareholders
General Meeting of 2021 dated August 24, 2021 and September 10, 2021. Found more on announcement (Notice No.:2020-047, 2020-048, 2020-049, 2020-063, 2020-
066, 2020-067, 2020-068, 2020-069 and 2021-075) released on appointed media China Securities Journal, Securities Times, Hong Kong Commercial Daily and Juchao
Website.
The company repurchased its shares for the first time from November 4, 2020 to February 18, 2022, and repurchased 14,674,166 shares of the company by centralized
bidding through a dedicated securities account for repurchase, accounting for 1.4048% of the company’s total share capital, the highest transaction price was
HK$2.36/share, the lowest transaction price was HK$1.87/share, and the total amount of self-owned funds paid was HK$32,558,454.08 (excluding transaction fees
such as stamp duty and commission). Cancellation of the aforementioned shares are being completed in Shenzhen Branch of CSDC on March 2, 2022,
After deliberation and approval by the Company's 2021 annual General Meeting of shareholders held on April 28,2022, the total share capital of the Company has been
reduced from 1,044,597,881 shares to 1,029,923,715 shares.found more on announcement (Notice No.:2022-011，2022-033) released on appointed media China
Securities Journal, Securities Times, Hong Kong Commercial Daily and Juchao Website.
(ii) Implementation progress of reducing holdings of shares buy-back by centralized bidding
□ Applicable √ Not applicable
149
CHANGHONG MEILING CO.,LTD. Annual Report 2022
VIII. Situation of the Preferred Shares
□ Applicable √ Not applicable
The Company had no preferred stock in the Period
150
CHANGHONG MEILING CO.,LTD. Annual Report 2022
IX. Corporate Bond
□ Applicable √ Not applicable
151
CHANGHONG MEILING CO.,LTD. Annual Report 2022
X. Financial Report
I. Audit report
Type of audit opinion Standard unqualified opinion
Date for signing the report March 30,2023
Name of audit institute Shine Wing Certified Public Accountants (LLP)
Serial of Auditing Report XYZH/2023CDAA7B0137
Name of CPA Wang Xiaodong, Tu Xiaofeng
Auditor’s Report
XYZH/2023CDAA7B0137
To Shareholders of Changhong Meiling Co., Ltd.:
I.Auditor’s opinion
We, as the auditors, audited the financial statements of Changhong Meiling Co., Ltd. (the “Company”), which
included the consolidated balance sheet as of 31 December 2022, the consolidated statement of income, the
consolidated statement of cash flow and the consolidated statement of changes in equity of the Company for Current
Year ended 31 December 2022, together with the relevant notes thereto.
We are the view that the attached financial statements are prepared in accordance with the Business Accounting
Standards in all material aspects, which reflect fairly the consolidated financial position of the Company as of 31
December 2022 and the operating results and cash flow of the Company for Current Year of 2022.
II. Basis for audit opinions
We conducted this audit under the requirements of the Auditing Standards of the Certified Public Accountant of the
PRC. The section headed “Certified Public Accountant’s responsibility for audit of financial statement” in the audit
report has further clarified our responsibilities under these standards. Pursuant to the code of professional conduct
as certified public accountant in the PRC, we are independent of the Company and have performed other
responsibility as required by our professional ethics. We believe that the audit evidence obtained by us is sufficient
and adequate, which provides foundation for us to issue audit opinion.
III.Key audit issues
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the
CHANGHONG MEILING CO.,LTD. Annual Report 2022
financial statements of the current period. These matters were addressed in the context of our audit of the financial
statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these
matters. The key audit matter we identified is as follows:
1.Recognition of revenue
Please refer to note (iv) 30 and note (vi) 48.
Key audit matters Audit address
1) Understand and evaluate the design and effectiveness of the operation of
internal control related to revenue recognition;
2) Check whether the revenue recognition conforms to the provisions of the
criteria;
3) Implement analytical review procedures, including analysis of annual,
monthly and seasonal revenue fluctuations of major products, changes in
Sales revenue of the Company was mainly
major customers, and changes in sales prices and gross margins;
sourced from sales of refrigerator, air
4) 1) Implement detailed test procedures, check the supporting documents
conditioner, small household appliances and
related to business revenue recognition, and determine whether the conditions
kitchen and washing machines to both domestic
for revenue recognition are met and whether the time point of revenue
and overseas customers. As indicated in note
recognition is correct;
(vi) 48 of the financial statement - Operating
5) For significant accounts receivable balances and the amount of sales
income and cost, the operating income was
revenue recognized during the period, we have implemented a positive letter
RMB20,215,220,192.20 in 2022. Since the
confirmation procedure to check whether there are significant differences
truthfulness and completeness of revenue
from the book value. For the letter back differences (if any), we have
recognition has material impact on operating
identified the reasons for the differences and implemented further audit
results, we attached great importance to
procedures;
recognition of sales revenue.
6) review collection of trade receivables, confirm the conformity between the
entities owing receivables and name of customers to verify whether there was
collection of receivables from third parties, to review the truthfulness of the
collection and revenue;
7) review collection of receivables in subsequent period;
8) make cut-off test and analysis re-review on revenue.
2.Capitalization of development expense
Please refer to note (iv)21 and note (vi)20
Key audit matters Audit address
1) Understand the key control of capitalization of development
expenditures, implement internal control audit procedures, understand the
scope and accounting methods of development expenditures, understand and
make research and development on related control systems and processes,
The development expense occurred for research
and test the effectiveness of relevant internal control design and operation;
and development of non-patent technology in
2022 was RMB135,753,117.26, which was 2) Implementation: compare the developed projects in intangible assets
capitalized and accounted for as development with machinery models for external sales, and re-verify the truthfulness of
expense in the consolidated financial statement. capitalization of completely developed projects
Development expense could only be capitalized 3) Dual purpose testing: inspect the project reports and inspection and
upon satisfaction of all the capitalization acceptance reports formed during the research and development and
conditions set out in note (iv) 21 to the commercialization of developed products, and judge the sufficiency of basis
financial statement. Since to confirm whether for accounting of development expense
all the capitalization conditions are met requires
the management to make significant judgment
and estimate, we deem this matter important in
the context of our audit.
IV. Other information
The management of Changhong Meiling Co., Ltd. (the “Management”) is responsible for other information which
includes the information covered in the Company’s 2022 annual report excluding the financial statement and our
153
CHANGHONG MEILING CO.,LTD. Annual Report 2022
audit report.
The audit opinion issued by us for the financial statement has not covered other information, for which we do not
issue any form of assurance opinions.
Considering our audit on financial statements, we are liable to read other information, during which, we shall
consider whether other information differs materially from the financial statements or that we understand during
our audit, or whether there is any material misstatement.
Based on the works executed by us, we should report the fact if we find any material misstatement in other
information. In t his regards, we have nothing to report.
V. Responsibilities of management and those charged with governance for the financial statements
The management is responsible for the preparation of the financial statements in accordance with the Accounting
Standards for Enterprise to secure a fair presentation, and for the design, establishment and maintenance of the
internal control necessary to enable the preparation of financial statements that are free from material misstatement,
whether due to fraud or error.
In preparing the financial statements, the management is responsible for assessing the Company’s ability to continue
as a going concern, disclosing matters related to going concern and using the going concern assumption unless the
management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do
so.
Those charged with governance are responsible for overseeing the Company’s financial reporting process.
VI. Responsibilities of the auditor for the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an audit report that includes our audit opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with
the CAS will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and
are considered material if, individually or in the aggregate, they could reasonably be expected to influence the
economic decisions of users taken on the basis of the financial statements.
As part of an audit in accordance with the CAS, we exercise professional judgment and maintain professional
skepticism throughout the audit. We also:
(1) identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error,
design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and
154
CHANGHONG MEILING CO.,LTD. Annual Report 2022
appropriate to provide a basis for audit opinion. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
(2) Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances.
(3) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and
related disclosures made by the management.
(4) Conclude on the appropriateness of the management’s use of the going concern assumption and, based on the
audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast
significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty
exists, we are required by the CAS to draw users’ attention in audit report to the related disclosures in the financial
statements or, if such disclosures are inadequate, to modify audit opinion. Our conclusions are based on the
information obtained up to the date of audit report. However, future events or conditions may cause the Company
to cease to continue as a going concern.
(5) Evaluate the overall presentation, structure and content of the financial statements, and whether the financial
statements represent the underlying transactions and events in a manner that achieves fair presentation.
(6) Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business
activities within the Company to express audit opinion on the financial statements. We are responsible for the
direction, supervision and performance of the group audit. We remain solely responsible for audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing
of the audit and significant audit findings, including any significant deficiencies in internal control that we identify
during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical
requirements regarding independence, and communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, related safeguard measures.
From the matters communicated with those charged with governance, we determine those matters that were of most
significance in the audit of the financial statements of the current period and are therefore the key audit matters. We
describe these matters in the auditor’s report unless law or regulation precludes public disclosure about the matter
or when, in extremely rare circumstances, we determine that a matter should not be communicated in the auditor’s
report because of the adverse consequences of doing so would reasonably be expected to outweigh the public interest
benefits of such communication.
155
CHANGHONG MEILING CO.,LTD. Annual Report 2022
Shine Wing Certified Public Accountants Chinese CPA: Wang Xiaodong,
(LLP) (Engagement partner)
Chinese CPA: Tu Xiaofeng
Beijing China 30 March 2023
156
CHANGHONG MEILING CO.,LTD. Annual Report 2022
II. Financial statements
Units in Notes of Financial Statements is RMB
1. Consolidated Balance Sheet
Prepared by CHANGHONG MEILING CO., LTD. December 31, 2022
In RMB
Items December 31,2022 January 1,2022
Current assets:
Monetary funds 6,839,421,779.13 5,938,823,396.21
Settlement provisions
Capital lent
Trading financial assets 57,660,588.67 17,997,086.19
Derivative financial assets
Note receivable 2,216,752.22
Account receivable 1,306,871,945.85 1,440,874,691.28
Receivable financing 1,446,358,719.88 1,808,109,301.56
Accounts paid in advance 45,859,491.55 29,766,797.34
Insurance receivable
Reinsurance receivables
Contract reserve of reinsurance
receivable
Other account receivable 88,354,803.24 111,652,635.86
Including: Interest receivable
Dividend receivable
Buying back the sale of financial
assets
Inventories 1,710,306,933.71 1,356,357,419.80
Contractual assets 3,530,922.13
Assets held for sale
Non-current asset due within one
year
170,167,638.89
Other current assets 120,589,431.85 124,240,934.45
Total current assets 11,789,122,254.90 10,830,039,014.91
Non-current assets:
Loans and payments on behalf
Debt investment 121,543,750.00
Other debt investment
Long-term account receivable
Long-term equity investment 100,384,428.50 86,631,660.53
Investment in other equity instrument
Other non-current financial assets 628,549,448.31 581,980,440.70
Investment real estate 52,898,060.89 53,149,934.45
Fixed assets 2,229,553,866.96 2,303,122,699.92
Construction in progress 66,522,492.77 98,469,862.45
Productive biological asset
Oil and gas asset
Right-of-use assets 36,646,135.10 45,367,918.31
Intangible assets 900,568,008.21 953,403,100.33
Expense on Research and
Development
102,148,390.57 87,728,990.86
Goodwill
Long-term expenses to be
apportioned
14,900,600.59
157
CHANGHONG MEILING CO.,LTD. Annual Report 2022
Deferred income tax asset 156,630,537.43 147,488,353.28
Other non-current asset 893,238.57 3,087,780.59
Total non-current asset 4,411,238,957.90 4,360,430,741.42
Total assets 16,200,361,212.80 15,190,469,756.33
Current liabilities:
Short-term loans 674,143,916.67 622,874,652.77
Loan from central bank
Capital borrowed
Trading financial liability 41,961,524.78 12,304,272.41
Derivative financial liability
Note payable 4,964,374,512.60 4,839,837,317.78
Account payable 2,917,997,138.00 2,299,103,796.88
Accounts received in advance
Contractual liability 358,755,397.77 515,004,115.23
Selling financial asset of repurchase
Absorbing deposit and interbank
deposit
Security trading of agency
Security sales of agency
Wage payable 348,154,915.13 247,044,421.56
Taxes payable 80,287,878.62 141,874,861.88
Other account payable 828,207,568.21 751,452,768.00
Including: Interest payable
Dividend payable 4,978,994.16 4,753,764.56
Commission charge and
commission payable
Reinsurance payable
Liability held for sale
Non-current liabilities due within
one year
30,287,099.08 332,718,478.25
Other current liabilities 22,605,269.51 24,373,759.16
Total current liabilities 10,266,775,220.37 9,786,588,443.92
Non-current liabilities:
Insurance contract reserve
Long-term loans 148,000,000.00 168,000,000.00
Bonds payable
Including: Preferred stock
Perpetual capital securities
Lease liability 28,164,287.97 33,225,912.15
Long-term account payable 1,145,286.48 1,337,643.24
Long-term wages payable 10,790,859.64 9,828,300.06
Accrual liability 32,685,631.78 11,363,601.63
Deferred income 161,013,911.91 175,664,038.83
Deferred income tax liabilities 12,750,747.30 9,670,435.45
Other non-current liabilities
Total non-current liabilities 394,550,725.08 409,089,931.36
Total liabilities 10,661,325,945.45 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 2,806,493,904.30 2,682,829,400.26
Less: Inventory shares 26,430,571.38
Other comprehensive income -20,881,462.63 -20,903,270.57
Reasonable reserve 2,467,205.78
Surplus public reserve 441,201,471.98 423,111,236.90
158
CHANGHONG MEILING CO.,LTD. Annual Report 2022
Provision of general risk
Retained profit 909,082,037.66 734,129,724.00
Total owner’ s equity attributable to
parent company
5,168,286,872.09 4,837,334,400.21
Minority interests 370,748,395.26 157,456,980.84
Total owner’ s equity 5,539,035,267.35 4,994,791,381.05
Total liabilities and owner’ s equity 16,200,361,212.80 15,190,469,756.33
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
Items December 31,2022 January 1,2022
Current assets:
Monetary funds 3,104,218,400.02 3,423,276,377.52
Trading financial assets 21,847,922.36 7,200,222.04
Derivative financial assets
Note receivable 330,000.00
Account receivable 1,145,561,769.05 1,582,651,896.25
Receivable financing 1,433,254,352.52 1,484,609,403.08
Accounts paid in advance 66,583,414.71 48,212,105.70
Other account receivable 29,903,408.82 40,708,614.68
Including: Interest receivable
Dividend receivable
Inventories 463,576,760.77 351,523,851.67
Contractual assets 46,970.75
Assets held for sale
Non-current assets maturing within
one year
170,167,638.89
Other current assets 165,510.80 28,957,697.04
Total current assets 6,435,326,148.69 6,967,470,167.98
Non-current assets:
Debt investment 121,543,750.00
Other debt investment
Long-term receivables
Long-term equity investments 1,856,359,424.33 1,882,557,241.66
Investment in other equity instrument
Other non-current financial assets 608,527,275.52 581,980,440.70
Investment real estate 3,543,885.11 3,752,737.75
Fixed assets 1,127,344,454.50 1,209,058,847.63
Construction in progress 51,057,550.03 50,287,155.16
Productive biological assets
Oil and natural gas assets
Right-of-use assets 16,739,912.26 18,632,705.13
Intangible assets 467,075,020.10 477,739,048.08
Research and development costs 60,386,906.45 44,387,584.10
Goodwill
Long-term deferred expenses 11,686,542.49
Deferred income tax assets 125,037,558.04 125,174,589.66
Other non-current assets 638,649.57 638,649.57
Total non-current assets 4,449,940,928.40 4,394,208,999.44
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CHANGHONG MEILING CO.,LTD. Annual Report 2022
Total assets 10,885,267,077.09 11,361,679,167.42
Current liabilities:
Short-term borrowings 618,091,666.67 612,863,194.44
Trading financial liability 13,537,472.81 5,766,743.33
Derivative financial liability
Notes payable 2,230,728,460.34 2,409,104,654.05
Account payable 1,531,945,762.15 1,356,405,016.24
Accounts received in advance
Contractual liability 121,216,205.12 238,437,143.59
Wage payable 64,869,503.19 42,679,625.89
Taxes payable 20,168,907.95 20,596,813.11
Other accounts payable 708,015,820.72 909,832,533.11
Including: Interest payable
Dividend payable 4,378,994.16 4,153,764.56
Liability held for sale
Non-current liabilities due within one
year
22,238,340.38 322,202,348.59
Other current liabilities 5,978,477.02 6,703,328.85
Total current liabilities 5,336,790,616.35 5,924,591,401.20
Non-current liabilities:
Long-term loans 148,000,000.00 168,000,000.00
Bonds payable
Including: Preferred stock
Perpetual capital securities
Lease liability 15,861,027.13 17,114,473.86
Long-term account payable
Long term employee compensation
payable
7,184,302.85 8,760,963.52
Accrued liabilities 7,785,977.55 7,539,547.19
Deferred income 84,762,685.97 82,658,197.54
Deferred income tax liabilities 8,642,999.01 6,131,087.92
Other non-current liabilities
Total non-current liabilities 272,236,992.51 290,204,270.03
Total liabilities 5,609,027,608.86 6,214,795,671.23
Owners’ 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 2,740,508,510.57 2,753,002,178.30
Less: Inventory shares 26,430,571.38
Other comprehensive income
Special reserve 687,069.38
Surplus reserve 440,983,306.30 422,893,071.22
Retained profit 1,064,136,866.98 952,820,937.05
Total owner’s equity 5,276,239,468.23 5,146,883,496.19
Total liabilities and owner’s equity 10,885,267,077.09 11,361,679,167.42
Legal Representative: Wu Dinggang
Person in charge of accounting works: Pang Haitao
Person in charge of accounting institute: Yang Jun
160
CHANGHONG MEILING CO.,LTD. Annual Report 2022
3. Consolidated Profit Statement
In RMB
Item 2022 2021
I. Total operating income 20,215,220,192.20 18,032,957,501.44
Including: Operating income 20,215,220,192.20 18,032,957,501.44
Interest income
Insurance gained
Commission charge and commission
income
II. Total operating cost 19,895,690,025.90 18,104,531,071.96
Including: Operating cost 17,444,530,235.32 15,869,745,814.47
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 158,529,459.29 129,067,764.08
Sales expense 1,428,874,991.47 1,364,640,404.75
Administrative expense 358,586,472.37 333,588,775.37
R&D expense 560,383,547.49 465,891,096.09
Financial expense -55,214,680.04 -58,402,782.80
Including: Interest expenses 30,470,512.88 71,229,760.29
Interest income 159,034,499.30 140,024,813.71
Add: Other income 102,556,591.53 108,992,292.09
Investment income (Loss is listed with
“-”)
33,018,838.80 128,963,968.59
Including: Investment income on
affiliated company and joint venture
20,440,095.97 12,422,382.59
The termination of income recognition
for financial assets measured by -24,385,552.13
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 “-”)
24,137,501.27 -3,133,939.42
Loss of credit impairment (Loss is listed
with “-”)
-164,446,765.99 -20,983,896.93
Losses of devaluation of asset (Loss is
listed with “-”)
-56,496,124.06 -57,484,042.03
Income from assets disposal (Loss is
listed with “-”)
27,602,023.18 -133,214.72
III. Operating profit (Loss is listed with
“-”)
285,902,231.03 84,647,597.06
Add: Non-operating income 9,249,343.27 10,022,053.88
Less: Non-operating expense 8,487,764.98 5,154,068.50
IV. Total profit (Loss is listed with “-”) 286,663,809.32 89,515,582.44
Less: Income tax expense 9,565,346.81 2,422,928.94
V. Net profit (Net loss is listed with “-”) 277,098,462.51 87,092,653.50
(i) Classify by business continuity
1.continuous operating net profit (net
loss listed with ‘-”)
277,098,462.51 87,092,653.50
2.termination of net profit (net loss listed
161
CHANGHONG MEILING CO.,LTD. Annual Report 2022
with ‘-”)
(ii) Classify by ownership
1.Net profit attributable to owner’s of
parent company
244,538,734.49 51,898,388.84
2.Minority shareholders’ gains and losses 32,559,728.02 35,194,264.66
VI. Net after-tax of other comprehensive
income
184,552.23 615,920.12
Net after-tax of other comprehensive
income attributable to owners of parent 21,807.94 547,813.60
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 21,807.94 547,813.60
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 21,807.94 547,813.60
statements
7.Other
Net after-tax of other comprehensive
income attributable to minority 162,744.29 68,106.52
shareholders
VII. Total comprehensive income 277,283,014.74 87,708,573.62
Total comprehensive income attributable
to owners of parent Company
244,560,542.43 52,446,202.44
Total comprehensive income attributable
to minority shareholders
32,722,472.31 35,262,371.18
VIII. Earnings per share:
(i) Basic earnings per share 0.2366 0.0497
(ii) Diluted earnings per share 0.2366 0.0497
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
162
CHANGHONG MEILING CO.,LTD. Annual Report 2022
4. Profit Statement of Parent Company
In RMB
Item 2022 2021
I. Operating income 7,398,328,633.00 7,828,290,567.95
Less: Operating cost 6,720,247,726.04 7,466,472,403.87
Taxes and surcharge 63,202,337.06 43,312,819.31
Sales expenses 189,954,443.11 114,547,496.48
Administration expenses 132,320,693.51 130,167,084.29
R&D expenses 245,429,316.63 191,827,388.68
Financial expenses -17,219,867.57 -20,256,595.92
Including: Interest expenses 28,128,736.65 57,761,266.90
Interest income 77,631,152.76 81,650,131.24
Add: Other income 31,044,974.74 58,148,812.31
Investment income (Loss is listed with
“-”)
79,584,251.32 92,743,182.98
Including: Investment income on
affiliated Company and joint venture
11,196,374.66 14,597,022.15
The termination of income recognition
for financial assets measured by -4,767,753.29
amortized cost (Loss is listed with “-”)
Net exposure hedging income (Loss is
listed with “-”)
Changing income of fair value (Loss is
listed with “-”)
20,986,049.21 187,866.00
Loss of credit impairment (Loss is listed
with “-”)
-40,156,897.45 -412,613.92
Losses of devaluation of asset (Loss is
listed with “-”)
-192,559.56 -9,191,483.58
Income on disposal of assets (Loss is
listed with “-”)
27,531,109.99 14,752.64
II. Operating profit (Loss is listed with
“-”)
183,190,912.47 43,710,487.67
Add: Non-operating income 2,611,298.85 2,837,084.03
Less: Non-operating expense 2,250,917.85 767,232.46
III. Total Profit (Loss is listed with “-”) 183,551,293.47 45,780,339.24
Less: Income tax 2,648,942.71 -21,684,125.42
IV. Net profit (Net loss is listed with “-”) 180,902,350.76 67,464,464.66
(i) continuous operating net profit (net
loss listed with ‘-”)
180,902,350.76 67,464,464.66
(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
163
CHANGHONG MEILING CO.,LTD. Annual Report 2022
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 180,902,350.76 67,464,464.66
VII. Earnings per share:
(i) Basic earnings per share 0.1750 0.0646
(ii) Diluted earnings per share 0.1750 0.0646
Legal Representative: Wu Dinggang
Person in charge of accounting works: Pang Haitao
Person in charge of accounting institute: Yang Jun
5. Consolidated Cash Flow Statement
In RMB
Item 2022 2021
I. Cash flows arising from operating
activities:
Cash received from selling commodities
and providing labor services
21,089,427,398.84 18,267,890,783.43
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 642,483,547.59 611,293,022.30
Other cash received concerning
operating activities
218,923,533.27 243,549,134.14
Subtotal of cash inflow arising from
operating activities
21,950,834,479.70 19,122,732,939.87
Cash paid for purchasing commodities
and receiving labor service
17,573,333,598.31 16,131,183,801.59
Net increase of customer loans and
advances
Net increase of deposits in central bank
and interbank
Cash paid for original insurance contract
compensation
164
CHANGHONG MEILING CO.,LTD. Annual Report 2022
Net increase of capital lent
Cash paid for interest, commission
charge and commission
Cash paid for bonus of guarantee slip
Cash paid to/for staff and workers 1,740,232,680.16 1,643,453,647.47
Taxes paid 516,256,689.43 378,617,838.78
Other cash paid concerning operating
activities
655,855,763.74 808,554,393.93
Subtotal of cash outflow arising from
operating activities
20,485,678,731.64 18,961,809,681.77
Net cash flows arising from operating
activities
1,465,155,748.06 160,923,258.10
II. Cash flows arising from investing
activities:
Cash received from recovering
investment
923,322,268.35 1,809,000,000.00
Cash received from investment income 41,956,520.69 27,234,864.16
Net cash received from disposal of fixed,
intangible and other long-term assets
78,341,283.79 1,790,401.44
Net cash received from disposal of
subsidiaries and other units
Other cash received concerning investing
activities
161,913,535.52 251,294,914.65
Subtotal of cash inflow from investing
activities
1,205,533,608.35 2,089,320,180.25
Cash paid for purchasing fixed,
intangible and other long-term assets
276,171,087.23 262,327,894.22
Cash paid for investment 1,300,000,000.00 1,809,000,001.00
Net increase of mortgaged loans
Net cash received from subsidiaries and
other units obtained
Other cash paid concerning investing
activities
135,747,164.72 68,334.39
Subtotal of cash outflow from investing
activities
1,711,918,251.95 2,071,396,229.61
Net cash flows arising from investing
activities
-506,384,643.60 17,923,950.64
III. Cash flows arising from financing
activities:
Cash received from absorbing
investment
368,459,272.52 16,650,992.51
Including: Cash received from absorbing
minority shareholders’ investment by 368,459,272.52 16,650,992.51
subsidiaries
Cash received from loans 1,255,467,515.59 1,669,454,955.26
Other cash received concerning
financing activities
23,536,567.33 14,136,579.91
Subtotal of cash inflow from financing
activities
1,647,463,355.44 1,700,242,527.68
Cash paid for settling debts 1,522,040,918.37 2,320,384,722.05
Cash paid for dividend and profit
distributing or interest paying
109,680,687.85 102,019,282.33
Including: Dividend and profit of
minority shareholder paid by subsidiaries
25,417,858.64 1,598,892.00
Other cash paid concerning financing
activities
770,652,259.57 28,323,542.28
Subtotal of cash outflow from financing
activities
2,402,373,865.79 2,450,727,546.66
Net cash flows arising from financing
activities
-754,910,510.35 -750,485,018.98
IV. Influence on cash and cash
equivalents due to fluctuation in 69,166,544.08 -13,697,073.29
exchange rate
V. Net increase of cash and cash 273,027,138.19 -585,334,883.53
165
CHANGHONG MEILING CO.,LTD. Annual Report 2022
equivalents
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
6,113,222,069.76 5,840,194,931.57
Legal Representative: Wu Dinggang
Person in charge of accounting works: Pang Haitao
Person in charge of accounting institute: Yang Jun
6. Cash Flow Statement of Parent Company
In RMB
Item 2022 2021
I. Cash flows arising from operating
activities:
Cash received from selling commodities
and providing labor services
7,440,766,977.75 6,992,278,846.46
Write-back of tax received 224,205,911.53 367,247,994.85
Other cash received concerning
operating activities
75,592,511.92 104,028,498.51
Subtotal of cash inflow arising from
operating activities
7,740,565,401.20 7,463,555,339.82
Cash paid for purchasing commodities
and receiving labor service
6,385,517,418.45 7,483,098,738.97
Cash paid to/for staff and workers 508,284,706.96 470,465,273.15
Taxes paid 67,235,152.14 44,871,430.22
Other cash paid concerning operating
activities
227,845,615.46 265,530,268.75
Subtotal of cash outflow arising from
operating activities
7,188,882,893.01 8,263,965,711.09
Net cash flows arising from operating
activities
551,682,508.19 -800,410,371.27
II. Cash flows arising from investing
activities:
Cash received from recovering
investment
457,300,378.10 1,700,000,000.00
Cash received from investment income 82,054,474.12 27,492,076.57
Net cash received from disposal of fixed,
intangible and other long-term assets
78,191,029.45 1,257,706.09
Net cash received from disposal of
subsidiaries and other units
Other cash received concerning investing
activities
82,511,271.70 153,610,973.82
Subtotal of cash inflow from investing
activities
700,057,153.37 1,882,360,756.48
Cash paid for purchasing fixed,
intangible and other long-term assets
164,617,367.95 166,190,792.44
Cash paid for investment 730,000,000.00 1,735,000,000.00
Net cash received from subsidiaries and
other units obtained
Other cash paid concerning investing
activities
49,326,025.46 197,627.47
Subtotal of cash outflow from investing
activities
943,943,393.41 1,901,388,419.91
Net cash flows arising from investing
activities
-243,886,240.04 -19,027,663.43
III. Cash flows arising from financing
activities:
Cash received from absorbing
166
CHANGHONG MEILING CO.,LTD. Annual Report 2022
investment
Cash received from loans 1,189,467,515.59 1,659,454,955.26
Other cash received concerning
financing activities
3,251,034.56 532,028,797.36
Subtotal of cash inflow from financing
activities
1,192,718,550.15 2,191,483,752.62
Cash paid for settling debts 1,502,040,918.37 2,219,678,042.05
Cash paid for dividend and profit
distributing or interest paying
81,201,833.46 98,533,426.01
Other cash paid concerning financing
activities
264,626,271.90 224,952,054.90
Subtotal of cash outflow from financing
activities
1,847,869,023.73 2,543,163,522.96
Net cash flows arising from financing
activities
-655,150,473.58 -351,679,770.34
IV. Influence on cash and cash
equivalents due to fluctuation in 19,360,991.70 -11,424,039.40
exchange rate
V. Net increase of cash and cash
equivalents
-327,993,213.73 -1,182,541,844.44
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
3,086,968,775.61 3,414,961,989.34
Legal Representative: Wu Dinggang
Person in charge of accounting works: Pang Haitao
Person in charge of accounting institute: Yang Jun
167
CHANGHONG MEILING CO.,LTD. Annual Report 2022
7. Statement of Changes in Owners’ Equity (Consolidated)
This Period
In RMB
2022
Total
Owners’ equity attributable to the parent Company owners’
equity
Other
Items Prov
equity instrument Minority
Other ision
Pref Perpet Less: interests
Share Capital comprehe Reasonab Surplus of Othe
erre ual Inventory Retained profit Subtotal
capital reserve nsive le reserve reserve gene r
d capital Other shares
income ral
stoc securit risk
k ies
2,682,8 -
I. The ending balance of 1,044,597,8 26,430,5 423,111,2 4,837,334,40 157,456, 4,994,791
29,400. 20,903,2 734,129,724.00
the previous year 81.00 71.38 36.90 0.21 980.84 ,381.05
26 70.57
Add: Changes of
accounting policy
Error correction of the
last period
Enterprise combine
under the same control
Other
II. The beginning 2,682,8 -
1,044,597,8 26,430,5 423,111,2 4,837,334,40 157,456, 4,994,791
balance of the current 29,400. 20,903,2 734,129,724.00
year 81.00 71.38 36.90 0.21 980.84 ,381.05
26 70.57
III. Increase/ Decrease - 123,66 -
21,807.9 2,467,20 18,090,2 330,952,471. 213,291, 544,243,8
in the period (Decrease 14,674,166. 4,504.0 26,430,5 174,952,313.66
is listed with “-”) 4 5.78 35.08 88 414.42 86.30
00 4 71.38
(i) Total comprehensive 21,807.9 244,538,734.49 244,560,542. 32,722,4 277,283,0
income 4 43 72.31 14.74
- 123,66 - 135,420,909. 205,763, 341,184,0
(ii) Owners’ devoted
14,674,166. 4,504.0 26,430,5 42 149.35 58.77
and decreased capital
00 4 71.38
168
CHANGHONG MEILING CO.,LTD. Annual Report 2022
1.Common shares - - - -737,262.35 228,415, 227,677,9
invested by 14,674,166. 12,493, 26,430,5 223.18 60.83
shareholders 00 667.73 71.38
2. Capital invested by
holders of other equity
instruments
3. Amount reckoned
into owners equity with
share-based payment
136,15 136,158,171. - 113,506,0
4. Other 8,171.7 77 22,652,0 97.94
7 73.83
18,090,2 -69,586,420.83 - - -
(iii) Profit distribution 35.08 51,496,185.7 25,417,8 76,914,04
5 58.64 4.39
1. Withdrawal of 18,090,2 -18,090,235.08
surplus reserves 35.08
2. Withdrawal of
general risk provisions
3. Distribution for -51,496,185.75 - - -
owners (or 51,496,185.7 25,417,8 76,914,04
shareholders) 5 58.64 4.39
4. Other
(iv) Carrying forward
internal owners’ equity
1. Capital reserves
conversed to capital
(share capital)
2. Surplus reserves
conversed to capital
(share capital)
3. Remedying loss with
surplus reserve
4. Carry-over retained
earnings from the
defined benefit plans
5. Carry-over retained
earnings from other
comprehensive income
6. Other
(v) Reasonable reserve 2,467,20 2,467,205.78 223,651. 2,690,857
169
CHANGHONG MEILING CO.,LTD. Annual Report 2022
5.78 40 .18
1. Withdrawal in the 2,467,20 2,467,205.78 223,651. 2,690,857
report period 5.78 40 .18
2. Usage in the report
period
(vi) Others
1,029,923,7 2,806,4 - 2,467,20 441,201, 909,082,037.66 5,168,286,87 370,748, 5,539,035
IV. Balance at the end
15.00 93,904. 20,881,4 5.78 471.98 2.09 395.26 ,267.35
of the period
30 62.63
Last Period
In RMB
2021
Total
Owners’ equity attributable to the parent Company owners’
equity
Items Other Minority
Other Provision
equity instrument Less: interests
Share Capital comprehe Reasonab Surplus of Retained
Perpetual Inventory Other Subtotal
capital Preferred reserve nsive le reserve reserve general profit
capital Other shares
stock income risk
securities
I. The ending -
balance of 1,044,59 2,683,83 9,929,33 416,364, 740,754, 4,854,173 107,921, 4,962,09
21,451,0 0.00
the previous 7,881.00 7,229.12 6.18 790.43 202.23 ,682.43 283.49 4,965.92
year 84.17
Add:
Changes of
accounting
policy
Error
correction of
the last
period
Enterprise
combine
under the
same control
Other
II. The
1,044,59 2,683,83 9,929,33 - 416,364, 740,754, 4,854,173 107,921, 4,962,09
beginning
170
CHANGHONG MEILING CO.,LTD. Annual Report 2022
balance of 7,881.00 7,229.12 6.18 21,451,0 790.43 202.23 ,682.43 283.49 4,965.92
the current 84.17
year
III. Increase/
Decrease in - - -
the period 16,501,2 547,813. 6,746,44 49,535,6 32,696,4
1,007,82 6,624,47 16,839,28
(Decrease is 35.20 60 6.47 97.35 15.13
listed with 8.86 8.23 2.22
“-”)
(i) Total
547,813. 51,898,3 52,446,20 35,262,3 87,708,5
comprehensi
ve income 60 88.84 2.44 71.18 73.62
(ii) Owners’ - - -
devoted and 16,501,2 15,872,2
1,007,82 17,509,06 1,636,84
decreased 35.20 18.17
capital 8.86 4.06 5.89
1.Common - -
shares 16,501,2 15,000,0
-5,438.39 16,506,67 1,506,67
invested by 35.20 00.00
shareholders 3.59 3.59
2. Capital
invested by
holders of
other equity
instruments
3. Amount
reckoned into
owners
equity with
share-based
payment
- - -
872,218.
4. Other 1,002,39 1,002,390 130,172.
17
0.47 .47 30
- - - -
(iii) Profit 6,746,44
58,522,8 51,776,42 1,598,89 53,375,3
distribution 6.47
67.07 0.60 2.00 12.60
1. -
Withdrawal 6,746,44
6,746,44
of surplus 6.47
reserves 6.47
2.
Withdrawal
171
CHANGHONG MEILING CO.,LTD. Annual Report 2022
of general
risk
provisions
3.
Distribution - - - -
for owners 51,776,4 51,776,42 1,598,89 53,375,3
(or 20.60 0.60 2.00 12.60
shareholders)
4. Other
(iv) Carrying
forward
internal
owners’
equity
1. Capital
reserves
conversed to
capital (share
capital)
2. Surplus
reserves
conversed to
capital (share
capital)
3.
Remedying
loss with
surplus
reserve
4. Carry-over
retained
earnings
from the
defined
benefit plans
5. Carry-over
retained
earnings
from other
comprehensi
ve income
6. Other
(v)
Reasonable
172
CHANGHONG MEILING CO.,LTD. Annual Report 2022
reserve
1.
Withdrawal
in the report
period
2. Usage in
the report
period
(vi) Others
IV. Balance -
1,044,59 2,682,82 26,430,5 423,111,2 734,129, 4,837,334 157,456, 4,994,79
at the end of 20,903,2
the period 7,881.00 9,400.26 71.38 36.90 724.00 ,400.21 980.84 1,381.05
70.57
Legal Representative: Wu Dinggang
Person in charge of accounting works: Pang Haitao
Person in charge of accounting institute: Yang Jun
8. Statement of Changes in Owners’ Equity (Parent Company)
This Period
In RMB
2022
Other
equity instrument Less: Other Total
Items Share Capital Reasonable Surplus Retained
Perpetual Inventory comprehensi Other owners’
capital Preferred reserve reserve reserve profit
capital Other shares ve income equity
stock
securities
I. The ending
1,044,597,8 2,753,002,1 26,430,571. 422,893,071 952,820,937 5,146,883,4
balance of the
previous year 81.00 78.30 38 .22 .05 96.19
Add: Changes
of accounting
policy
173
CHANGHONG MEILING CO.,LTD. Annual Report 2022
Error
correction of the
last period
Other
II. The
beginning 1,044,597,8 2,753,002,1 26,430,571. 422,893,071 952,820,937 5,146,883,4
balance of the 81.00 78.30 38 .22 .05 96.19
current year
III. Increase/ - - - 687,069.38 18,090,235. 111,315,929 129,355,972
Decrease in the 14,674,166. 12,493,667. 26,430,571. 08 .93 .04
period 00 73 38
(Decrease is
listed with “-”)
(i) Total 180,902,350 180,902,350
comprehensive .76 .76
income
(ii) Owners’ - - - -737,262.35
devoted and 14,674,166. 12,493,667. 26,430,571.
decreased
00 73 38
capital
1.Common - - - -737,262.35
shares invested 14,674,166. 12,493,667. 26,430,571.
by shareholders 00 73 38
2. Capital
invested by
holders of other
equity
instruments
3. Amount
reckoned into
owners equity
with share-
based payment
4. Other
18,090,235. - -
(iii) Profit
08 69,586,420. 51,496,185.
distribution
83 75
1. Withdrawal 18,090,235. -
of surplus 08 18,090,235.
reserves 08
2. Distribution - -
for owners (or 51,496,185. 51,496,185.
174
CHANGHONG MEILING CO.,LTD. Annual Report 2022
shareholders) 75 75
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 687,069.38 687,069.38
reserve
1. Withdrawal 687,069.38 687,069.38
in the report
period
2. Usage in the
report period
(vi) Others
IV. Balance at 1,029,923,7 2,740,508,5 687,069.38 440,983,306 1,064,136,8 5,276,239,4
the end of the 15.00 10.57 .30 66.98 68.23
period
Last period
175
CHANGHONG MEILING CO.,LTD. Annual Report 2022
In RMB
2021
Other
equity instrument Less: Other Total
Items Share Capital Reasonable Surplus Retained
Perpetual Inventory comprehensi Other owners’
capital Preferred reserve reserve reserve profit
capital Other shares ve income equity
stock
securities
I. The ending
1,044,597,8 2,753,137,7 9,929,336.1 416,146,624 943,879,339 5,147,832,2
balance of the
previous year 81.00 87.99 8 .75 .46 97.02
Add: Changes
of accounting
policy
Error
correction of the
last period
Other
II. The
beginning 1,044,597,8 2,753,137,7 9,929,336.1 416,146,624 943,879,339 5,147,832,2
balance of the 81.00 87.99 8 .75 .46 97.02
current year
III. Increase/
Decrease in the
16,501,235. 6,746,446.4 8,941,597.5
period -135,609.69 -948,800.83
(Decrease is 20 7 9
listed with “-”)
(i) Total
67,464,464. 67,464,464.
comprehensive
income 66 66
(ii) Owners’ -
devoted and 16,501,235.
-135,609.69 16,636,844.
decreased 20
capital 89
1.Common -
16,501,235.
shares invested -5,438.39 16,506,673.
by shareholders 20
59
2. Capital
invested by
holders of other
equity
instruments
176
CHANGHONG MEILING CO.,LTD. Annual Report 2022
3. Amount
reckoned into
owners equity
with share-
based payment
4. Other -130,171.30 -130,171.30
- -
(iii) Profit 6,746,446.4
58,522,867. 51,776,420.
distribution 7
07 60
1. Withdrawal -
6,746,446.4
of surplus 6,746,446.4
reserves 7
7
2. Distribution - -
for owners (or 51,776,420. 51,776,420.
shareholders) 60 60
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
177
CHANGHONG MEILING CO.,LTD. Annual Report 2022
income
6. Other
(v) Reasonable
reserve
1. Withdrawal
in the report
period
2. Usage in the
report period
(vi) Others
IV. Balance at
1,044,597,8 2,753,002,1 26,430,571. 422,893,071 952,820,937 5,146,883,4
the end of the
period 81.00 78.30 38 .22 .05 96.19
Legal Representative: Wu Dinggang
Person in charge of accounting works: Pang Haitao
Person in charge of accounting institute: Yang Jun
178
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
I. Company profile
Changhong Meiling Co., Ltd (hereinafter referred to as “the Company”) ，originally named as Hefei Meiling
Co., Ltd. is an incorporated Company established and reorganized by Hefei Meiling Refrigerator General
Factory and approved on June 12th 1992 through [WanTiGaiHanZi (1992) No.039] issued by original
Mechanism Reform Committee of Anhui Province. On August 30th 1993, through Anhui Provincial
Government [Wanzhenmi (1993) No.166] and re-examination of China Securities Regulatory Commission,
the Company made first public issue for 30 million A shares and the Company was listed on Oct. 18th, 1993 in
Shenzhen Stock Exchange. On August 13th, 1996, the Company was approved to issue 100 million B shares to
investors abroad through [ZhengWeiFa (1996) No.26] issued by China Securities Regulatory Commission. The
Company went public in Shenzhen Stock Exchange on August 28th, 1996.
State-owned Assets Supervision & Administration Commission of the State Council approved such transfers
with Document Guozi Chanquan (2007) No.253 Reply on Matters of Hefei Meiling Group Holdings Limited
Transferring Partial State-owned Ownership, Hefei Meiling Group Holdings Limited (hereinafter referred to
as Meiling Group) transferred its holding 37,852,683 shares in 82,852,683 state-owned shares of the Company
to Sichuan Changhong Electronic Group Co., Ltd (hereinafter referred to as Changhong Group), other
45,000,000 shares to Sichuan Changhong Electric Co. Ltd (hereinafter referred to as Sichuan Changhong). On
Aug 15, 2007, the above ownership was transferred and Cleaning Corporation Limited.
On 27 August 2007, State-owned Assets Supervision & Administration Commission of Anhui Provincial
Government replied with Document [WGZCQH (2007) No.309] Reply on “Related Matters of Share Merger
Reform of Hefei Meiling Co., Ltd.”, agreed the Company’s ownership split reform plan. The Company made
consideration that non-tradable share holders deliver 1.5 shares to A share holders per 10 shares, and original
Meiling Group made prepayment 3,360,329 shares for some non-tradable share holders as consideration for
split reform plan.
On 29 May 2008, concerning 34,359,384 state-owned shares (including 3,360,329 shares paid for other non-
tradable shareholders by original Meiling Group in share reform) held by original Meiling Group, the “Notice
of Freely Transfer of Meiling Electrics Equity held by Meiling Group”[HGZCQ(2008) No. 59] issued from
State-owned Assets Supervision & Administration Commission of Hefei Municipal, agrees to transfer the
above said shares to Hefei Xingtai Holding Group Co., Ltd.(“Xingtai Holding Co.,”) for free. On 7 August
2008, the “Reply of Transfer Freely of Part of the Shares of Hefei Meiling Co., Ltd. held by State-owned
shareholders” [GZCQ (2007) No. 752] issued by SASAC, agrees the above said transferring.
On October 29, 2008, Changhong Group signed Agreement on Equity Transfer of Hefei Meiling Co., Ltd with
Sichuan Changhong, in which 32,078,846 tradable A-shares with conditional subscription of the Company
(accounting for 7.76% in total shares) held by Changhong Group. On 23 December 2008, “Reply of Transfer
Freely of Part of the Shares of Hefei Meiling Co., Ltd. held by State-owned shareholders” [GZCQ (2008) No.
1413] issued by SASAC agrees the above said share transferring.
179
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
On 24 December 2010, being deliberated and approved in 32nd Session of 6th BOD and 2nd Extraordinary
Shareholders’ General Meeting of 2010 as well as approval of document [ZJXK (2010) No. 1715] from CSRC,
totally 116,731,500 RMB ordinary shares (A stock) were offering privately to target investors with issue price
of RMB 10.28/share. Capital collecting amounting to RMB 1,199,999,820 after issuing expenses RMB
22,045,500 deducted, net capital collected amounting to RMB 1,177,954,320, and paid-in capital (share capital)
increased RMB 116,731,500 with capital reserve (share premium) RMB 1,061,106,088.5 increased. The
increasing capital has been verified by Capital Verification Report No.: ［XYZH2010CDA6021］issued from
Shin Wing CPA Co., Ltd.
On 20 June 2011, the general meeting of the Company considered and approved the 2010 profit distribution
plan, namely to distribute cash dividends of RMB0.5 (tax included) plus two shares for every ten shares held
by shareholders to all shareholders, based on the total share capital of 530,374,449 shares as of 31 December
2010. The total share capital of the Company upon profit distribution increased to 636,449,338 shares. The
capital increase was verified by Anhui Huashen Zhengda Accounting Firm with the verification report
WHSZDKYZ (2011) No.141.
On 26 June 2012, the general meeting of the Company considered and approved the 2011 profit distribution
and capitalization of capital reserve plan, namely to distribute cash dividends of 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
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.
180
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
Ended as December 31, 2022, total share capital of the Company amounting to 1,029,923,715shares 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 14.38% 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 0.47%
Including: Domestic legal person’s shares 3,363,539 0.33%
Domestic natural person’s shares 1,420,480 0.14%
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 14.26%
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
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
181
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
In the reporting period, the consolidated financial statements of the Company cover 24 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
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
182
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
As acquirer, the Company measures the assets and liabilities acquired through business combination under
common control at their carrying values as reflected in the consolidated financial statement of the ultimate
controller as of the combination date. Capital reserve shall be adjusted in respect of any difference between
carrying value of the net assets acquired and carrying value of the combination consideration paid. In case that
capital reserve is insufficient to offset, the Company would adjust retained earnings.
The acquiree’s net identifiable assets, liabilities or contingent liabilities acquired through business combination
not under common control shall be measured at fair value as of the acquisition date. The cost of combination
represents the fair value of the cash or non-cash assets paid, liabilities issued or committed and equity securities
issued by the Company as at the date of combination in consideration for acquiring the controlling power in
the acquiree, together with the sum of any directly related expenses occurred during business combination(in
case of such business combination as gradually realized through various transactions, the combination cost
refers to the sum of each cost of respective separate transaction). Where the cost of the combination exceeds
the acquirer’s interest in the fair value of the acquirer’s identifiable net assets acquired, the difference is
recognized as goodwill; where the cost of combination is lower than the acquirer’s interest in the fair value of
the acquiree’s identifiable net assets, the Company shall firstly make further review on the fair values of the
net identifiable assets, liabilities or contingent liabilities acquired as well as the fair value of the non-cash assets
portion of combination consideration or the equity securities issued by the Company. In case that the Company
finds the cost of combination is still lower than the acquirer’s interest in the fair value of the acquiree’s
identifiable net assets after such further review, the difference is recognized in non-operating income for the
current period when combination occurs.
6. Measures on Preparation of Consolidated Financial Statements
The Company shall put all the subsidiaries controlled and main body structured into consolidated financial
statements.
Any difference arising from the inconformity of accounting year or accounting policies between the
subsidiaries and the Company shall be adjusted in the consolidated financial statements.
All the material inter-company transactions, non-extraordinary items and unrealized profit within the
combination scope are written-off when preparing consolidated financial statement. Owners’ equity of
subsidiary not attributable to parent company and current net gains and losses, other comprehensive income
and total comprehensive income attributable to minority shareholders are recognized as non-controlling
interests, minority interests, other comprehensive income attributable to minority shareholders and total
comprehensive income attributable to minority shareholders in consolidated financial statement respectively.
As for subsidiary acquired through business combination under common control, its operating results and
cash flow will be included in consolidated financial statement since the beginning of the period when
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.
183
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
As for equity interests of the investee under common control acquired through various transactions which
eventually formed business combination, the Company shall supplement disclosure of the accounting treatment
in consolidated financial statement in the reporting period when controlling power is obtained. For example,
as for equity interests of the investee under common control acquired through various transactions which
eventually formed business combination, adjustments shall be made as if the current status had been existing
when the ultimate controller commenced control in connection of preparing consolidated financial statement;
in connection with preparing comparative statement, the Company shall consolidate the relevant assets and
liabilities of the acquiree into the Company’s comparative consolidated financial statement to the extent not
earlier than the timing when the Company and the acquiree are all under control of the ultimate controller, and
the net assets increased due to combination shall be used to adjust relevant items under owners’ equity in
comparative statement. In order to prevent double computation of the value of the acquiree’s net assets, the
relevant profits and losses, other comprehensive income and change of other net assets recognized during the
period from the date when the Company acquires original equity interests and the date when the Company and
the acquiree are all under ultimate control of the same party (whichever is later) to the date of combination in
respect of the long-term equity investment held by the Company before satisfaction of combination shall be
utilized to offset the beginning retained earnings and current gains and losses in the period as the comparative
financial statement involves, respectively.
As for subsidiary acquired through business combination not under common control, its operating results
and cash flow will be included in consolidated financial statement since the Company obtains controlling power.
When preparing consolidated financial statement, the Company shall adjust the subsidiary’s financial statement
based on the fair value of the various identifiable assets, liabilities or contingent liabilities recognized as of the
acquisition date.
As for equity interests of the investee not under common control acquired through various transactions which
eventually formed business combination, the Company shall supplement disclosure of the accounting treatment
in consolidated financial statement in the reporting period when controlling power is obtained. For example,
as for equity interests of the investee not under common control acquired through various transactions which
eventually formed business combination, when preparing consolidated financial statement, the Company
would re-measure the equity interests held in the acquiree before acquisition date at their fair value as of the
acquisition date, and any difference between the fair value and carrying value is included in current investment
income. in case that the equity interests in acquiree held by the Company before the relevant acquisition date
involves other comprehensive income at equity method and change of other owners’ equity (other than net
gains and losses, other comprehensive income and profit distribution), then the equity interests would transfer
to investment gains and losses for the period which the acquisition date falls upon. 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
184
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
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 subsidiary is realized through multi pletran section sunlit loss of
control and is a pack age deal. the accounting treatment of the sterna sections should be dealt with as one
transaction of disposal of the subsidiary until loss of control. However, before the Company loses total control
of the subsidiary, the differences between the actual disposal price and the share of the net assets of the
subsidiary disposed of in every transaction should be recognized as other comprehensive income in the
consolidated financial statements, and transferred to profit or loss when losing control.
7. Accounting treatment for joint venture arrangement and joint controlled entity
The joint venture arrangement of the Company consists of joint controlled entity and joint venture. As for
jointly controlled entity, the Company determines the assets held and liabilities assumed separately as a party
to the jointly controlled entity, recognizes such assets and liabilities according to its proportion, and recognizes
relevant income and expense separately under relevant agreement or according to its proportion. As for asset
transaction relating to purchase and sales with the jointly controlled entity which does not constitute business
activity, part of the gains and losses arising from such transaction attributable to other participators of the
jointly controlled entity is only recognized.
8.Cash and cash equivalents
Cash in the cash flow statement comprises the Group’s 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 aninsignificantriskofchanges in value,
including but not limited to the followings which meet the aforesaid conditions: debt investment matured
within three months upon the acquisition date, bank time deposit which can be early withdrew by serving a
notice and transferrable deposit receipt, etc. for time deposit which can not be used for payment at any time, it
would be note recognized as cash; while if can be used for such purpose, it would be recognized as cash.
Guarantee deposit over three months in other monetary capital shall not be recognized as cash equivalents, and
those less than three months are recognized as cash equivalents.
9. Foreign currency business and foreign currency financial statement conversion
(1) Foreign currency business
185
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
As for the foreign currency business, the Company converts the foreign currency amount into RMB amount
pursuant to the spot exchange rate as of the business day. As at the balance sheet date, monetary items expressed
by foreign currency are converted into RMB pursuant to the spot exchange rate as of the balance sheet date.
The conversion difference occurred is recorded into prevailing gains and losses, other than the disclosure which
is made according to capitalization rules for the exchange difference occurred from the special foreign currency
borrowings borrowed for constructing and producing the assets satisfying condition of capitalization. As for
the foreign currency non-monetary items measured by fair value, the amount is then converted into RMB
according to the spot exchange rate as of the confirmation day for fair value. And the conversion difference
occurred during the procedure is recorded into prevailing gains and losses directly as change of fair value. As
for the foreign currency non-monetary items measured by historical cost, conversion is made with the spot
exchange rate as of the business day, with no change in RMB amount.
(2) Conversion of foreign currency financial statement
Spot exchange rate as of the balance sheet date is adopted for conversion of assets and liabilities in foreign
currency balance sheet; as for the items in statement of owners’ equity except for “Retained profit”, conversion
is made pursuant to the spot exchange rate of business day; income and expense items in income statement
then are also converted pursuant to the spot exchange rate of transaction day. Difference arising from the
aforementioned conversions shall be listed separately in items of owners’ equity. Spot exchange rate as of the
occurrence date of cash flow is adopted for conversion of foreign currency cash flow. The amount of cash
affected by exchange rate movement shall be listed separately in cash flow statement.
10. Financial assets and liabilities
A financial asset or liability is recognized when the group becomes a party to a financial instrument contract.
The financial assets and financial liabilities are measured at fair value on initial recognition. For the financial
assets and liabilities measured by fair value and with variation reckoned into current gains/losses, the related
transaction expenses are directly included in current gains or losses; for other types of financial assets and
liabilities, the related transaction costs are included in the initial recognition amount.
(1) Method for determining the fair value of financial assets and financial liabilities
Fair value refers to the price that a market participant can get by selling an asset or has to pay for transferring
a liability in an orderly transaction that occurs on the measurement date. For a financial instrument having an
active market, the Company uses the quoted prices in the active market to determine its fair value. 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.
186
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
(2) Category and measurement on financial assets
The group divided the financial assets as the follow while initially recognized: the financial assets measured at
amortized cost; the financial assets measured at fair value and whose changes are included in other
comprehensive income; and the financial assets measured by fair value and with variation reckoned into current
gains/losses. The classification of financial assets depends on the business model that the Group's enterprises
manage the financial assets and the cash flow characteristics of the financial assets.
1) The financial assets measured at amortized cost
Financial assets are classified as financial assets measured at amortized cost when they also meet the following
conditions: The group's business model for managing the financial assets is to collect contractual cash flows;
the contractual terms of the financial assets stipulate that cash flow generated on a specific date is only paid
for the principal and interest based on the outstanding principal amount. For such financial assets, the effective
interest method is used for subsequent measurement according to the amortized cost, and the gains or losses
arising from amortization or impairment are included in current profits and losses. Such financial assets mainly
include monetary funds, notes receivable, accounts receivable, other receivables, debt investment and long-
term receivables, and so on. The Group lists the debt investment and long-term receivables due within one year
(including one year) from the balance sheet date as non-current assets due within one year, and lists the debt
investment with time limit within one year (including one year) when acquired as other current assets.
2) Financial assets measured at fair value and whose changes are included in other comprehensive income
Financial assets are classified as financial assets measured at fair value and whose changes are included in
other comprehensive income when they also meet the following conditions: The Group's business model for
managing the financial assets is targeted at both the collection of contractual cash flows and the sale of financial
assets; the contractual terms of the financial asset stipulate that the cash flow generated on a specific date is
only the payment of the principal and the interest based on the outstanding principal amount. For such financial
assets, fair value is used for subsequent measurement. The discount or premium is amortized by using the
effective interest method and is recognized as interest income or expenses. Except the impairment losses and
the exchange differences of foreign currency monetary financial assets are recognized as the current profits
and losses, the changes in the fair value of such financial assets are recognized as other comprehensive income
until the financial assets are derecognized, the accumulated gains or losses are 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
187
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
Financial assets except for the above-mentioned financial assets measured at amortized cost and financial
assets measured at fair value and whose changes are included in other comprehensive income are classified as
financial assets measured at fair value and whose changes are included in current profits and losses, which
adopt fair value for subsequent measurement and all changes in fair value are included in current profits and
losses. The Group classifies non-trading equity instruments as financial assets measured at fair value and whose
changes are included in current profits and losses. Such financial assets are presented as trading financial assets,
and those expire after more than one year and are expected to be held for more than one year are presented as
other non-current financial assets.
(3) Devaluation of financial instrument
On the basis of expected credit losses, the Group performs impairment treatment on financial assets measured
at amortized cost and financial assets measured at fair value and whose changes are included in other
comprehensive income and recognize the provisions for loss.
Credit loss refers to the difference between all contractual cash flows that the Company discounts at the original
actual interest rate and are receivable in accordance with contract and all cash flows expected to be received,
that is, the present value of all cash shortages. Among them, for the purchase or source of financial assets that
have suffered credit impairment, the Company discounts the financial assets at the actual interest rate adjusted
by credit.
The Group considers all reasonable and evidenced information, including forward-looking information, based
on credit risk characteristics. When assessing the expected credit losses of receivables, they are classified
according to the specific credit risk characteristics as follows:
1) For receivables and contractual assets and lease receivables (including significant financing components
and not including significant financing components), the Group measures the provisions for loss based on the
amount of expected credit losses equivalent to the entire duration.
①Evaluate expected credit losses based on individual items: credit notes receivable (including accepted letters
of credit) of financial institutions in notes receivable and accounts receivable, and related party payments
(related parties under the same control and significant related parties); dividends receivable, interest receivable,
reserve funds, investment loans, cash deposits (including warranty), government grants (including dismantling
subsidies) in other receivables, and receivables with significant financing components (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.
188
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
The Group considers all reasonable and evidenced information, including forward-looking information, when
assessing expected credit losses. When there is objective evidence that its customer credit characteristics and
ageing combination cannot reasonably reflect its expected credit loss, the current value of the expected future
cash flow is measured by a single item, and the cash flow shortage is directly written down the book balance
of the financial asset.
2) Assess the expected credit losses on a case-by-case basis for other assets to which the financial instruments
are impaired, such as the loan commitments and financial guarantee contracts that are not measured at fair
value through profit or loss, financial assets measured at fair value and whose changes are recognized in other
comprehensive income; other financial assets measured at amortized cost (such as other current assets, other
non-current financial assets, etc.).
(4) Reorganization basis and measure method for transfer of financial assets
The financial assets meet one of following requirements will be terminated recognition: ① The contract rights
of collecting cash flow of the financial assets is terminated; ②The financial assets has already been transferred,
and the Company has transferred almost all risks and remunerations of financial assets ownership to the
transferee; ③The financial assets has been transferred, even though the Company has neither transferred nor
kept almost all risks and remunerations of financial assets ownership, the Company has given up controlling
the financial assets.
If the enterprise has neither transferred or kept almost all risks and remunerations of financial assets ownership,
nor given up controlling the financial assets, then confirm the relevant financial assets according to how it
continues to involve into the transferred financial assets and confirm the relevant liabilities accordingly. The
extent of continuing involvement in the transferred financial assets refers to the level of risk arising from the
changes in financial assets value faced by the enterprise.
If the entire transfer of financial assets satisfies the demand for derecognition, reckon the balance between the
book value of the transferred financial assets and the sum of consideration received from transfer and
fluctuation accumulated amount of fair value formerly reckoned in other consolidated income in the current
profits and losses.
If part transfer of financial assets satisfies the demand for derecognition, apportion the integral book value of
the transferred financial assets between the derecognized parts and the parts not yet derecognized according to
each relative fair value, and reckon the balance between the sum of consideration received from transfer 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
189
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
have been transferred. If almost all the risks and rewards of ownership of the financial assets have been
transferred to the transferee, the financial assets shall be derecognized; if almost all the risks and rewards of
ownership of the financial assets are retained, the financial assets shall not be derecognized; if almost all the
risks and rewards of ownership of the financial assets are neither transferred nor retained, continue to judge
whether the company retains control over the assets, and conduct accounting treatment according to the
principles described in the preceding paragraphs.
(5) Category and measurement of financial liability
Financial liability is classified into financial liability measured by fair value and with variation reckoned into
current gains/losses and other financial liability at initially measurement. Financial liability shall be initially
recognized and measured at fair value. As for the financial liability measured by fair value and with variation
reckoned into current gains/losses, relevant trading costs are directly reckoned into current gains/losses while
other financial liability shall be reckoned into the initial amount recognized.
① the financial liability measured by fair value and with variation reckoned into current gains/losses
The conditions to be classified as trading financial liabilities and as financial liabilities designated to be
measured at fair value and whose changes are included in current profit or loss at the initial recognition are
consistent with the conditions to be classified as trading financial assets and as financial assets designated to
be measured at fair value and whose changes are included in current profit or loss at the initial recognition.
Financial liabilities measured at fair value and whose changes are included in current profit or loss are
subsequently measured at fair value, and the gain or loss arising from changes in fair value and the dividends
and interest expense related to these financial liabilities are included in current profit or loss.
② Other financial liability
It must go through the delivery of the derivative financial liabilities settled by the equity instrument to link to
the equity instruments that are not quoted in an active market and whose fair value cannot be reliably measured,
and the subsequent measurement is carried out in accordance with the cost. Other financial liabilities are
subsequently measured at amortized cost by using the effective interest method. The gain or loss arising from
derecognition or amortization is included in current profit or loss.
③Financial guarantee contract
The financial guarantee contract of a financial liability which is not designated to be measured at fair value
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
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Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
Enterprises No. 14—Revenue from the initial recognition amount.
(6) Termination of recognition of financial liability
The financial liability or part of it can only be terminated for recognized when all or part of the current
obligation of the financial liability has been discharged. The Group (debtor) and the creditor sign an agreement
to replace the existing financial liabilities with new financial liabilities, and if the contract terms of the new
financial liabilities are substantially different from the existing financial liabilities, terminated for recognized
the existing financial liabilities and at the same time recognize the new financial liabilities. If the financial
liability is terminated for recognized in whole or in part, the difference between the carrying amount of the part
that terminated for recognized and the consideration paid (including the transferred non-cash assets or the
assumed new financial liabilities) is included in current profits and losses.
(7) Off-set between the financial assets and liabilities
When the Company has a legal right to offset a recognized financial asset and a financial liability and such
legal right is currently enforceable, and the Company plans to settle the financial asset on a net basis or to
realize the financial asset and settle the financial liability simultaneously, the financial asset and the financial
liability are presented in the balance sheet at their respective offsetting amounts. In addition, the financial assets
and financial liabilities are presented in the balance sheet separately, and are not offset against each other.
(8) Derivatives and embedded derivatives
Derivatives are initially measured at fair value on the signing date of the relevant contract, and are subsequently
measured at fair value. Except for derivatives that are designated as hedging instruments and are highly
effective in hedging, the gains or losses arising from changes in fair value will be determined based on the
nature of the hedging relationship in accordance with the requirements of the hedge accounting and be included
in the period of profit and loss, other changes in fair value of derivatives are included in current profits and
losses. For a hybrid instrument that includes an embedded derivative, if it is not designated as a financial asset
or financial liability measured at fair value and whose changes are included in current profit or loss, the
embedded derivative does not have a close relationship with the main contract in terms of economic
characteristics and risks, and as with embedded derivatives, if the tools existing separately conform to the
definition of the derivatives, the embedded derivatives are split from the hybrid instruments and are treated as
separate derivative financial instruments. If it is not possible to measure the embedded derivative separately at
the time of acquisition or subsequent balance sheet date, the whole hybrid instrument 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
191
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
of all liabilities in the Group. The Company issues (including refinancing), repurchases, sells or cancels equity
instruments as movement of equity. No fair value change of equity instrument would be recognized by the
Company. Transaction costs associated with equity transactions are deducted from equity. The Group's various
distributions to equity instrument holders (excluding stock dividends) reduce shareholders' equity.
11. Inventory
Inventories of the Company principally include raw materials, stock goods; work in process, self-made semi-
finished product, materials consigned to precede, low-value consumption goods, goods in transit, goods in
process, mould and contract performance costs.
Perpetual inventory system is applicable to inventories. For daily calculation, standard price is adopted for raw
materials, low-value consumption goods and stock goods. Switch-back cost of the current month is adjusted
by distribution price difference at the end of the month, the dispatched goods will share the cost differences of
inventory while in settlement the business income; and low-value consumption goods is carried forward at
once when being applied for use and the mould shall be amortized within one year after receipt.
Inventory at period-end is valued by the Lower-of-value between the cost and net realizable value.The
provision for inventory depreciation shall be drawn from the difference between the book cost of a single
inventory item and its net realizable value, and the provision for inventory depreciation shall be recorded into
the current profit and loss.
12. Contract assets
(1) Confirmation methods and standards of contract assets
Contract assets refer to the right of the Company to receive consideration after transferring goods to customers,
and this right depends on factors other than the passage of time. If the Company sells two clearly
distinguishable commodities to a customer and has the right to receive payment because one of the
commodities has been delivered, but the payment is also dependent on the delivery of the other commodity,
the Company shall take the right to receive payment as a contract asset.
(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
(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.
192
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
If the Company actually incurs credit losses and determines that the relevant contract assets cannot be
recovered, for those approved to be written off, debit the "contract asset impairment reserve" and credit the
"contracted asset" based on the approved write-off amount. If the written-off amount is greater than the
provision for loss that has been withdrawn, the "asset impairment loss" is debited based on the difference.
13. Contract cost
(1) The method of determining the amount of assets related to the contract cost
The Company’s assets related to contract costs include contract performance cost and contract acquisition cost.
The contract performance cost is the cost incurred by the Company for the performance of the contract, those
that do not fall within the scope of other accounting standards and meet the following conditions at the same
time are recognized as as an asset as the contract performance cost: the cost is directly related to a current or
expected contract, including direct labor, direct materials, manufacturing expenses (or similar expenses), costs
clarified to be borne by the customer, and other costs incurred solely due to the contract; this cost increases the
Company's future resources for fulfilling the contract's performance obligations; this cost is expected to be
recovered.
Contract acquisition cost is the incremental cost incurred by the Company to obtain the contract, those that are
expected to be recovered are recognized as the contract acquisition cost as an asset; if the asset amortization
period does not exceed one year, it shall be included in the current profit and loss when it occurs. Incremental
cost refers to the cost (such as sales commission, etc.) that will not incur if the Company doesn’t obtain the
contract. The Company’s expenses (such as travel expenses incurred regardless of whether the contract is
obtained) incurred for obtaining the contract other than the incremental costs expected to be recovered are
included in the current profits and losses when they are incurred, except those are clarified to be borne by the
customer.
(2) Amortization of assets related to contract costs
The Company’s assets related to contract costs are amortized on the same basis as the recognition of commodity
income related to the asset and included in the current profit and loss.
(3) Impairment of assets related to contract costs
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
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Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
included in the current profit and loss, but the book value of the asset after the reversal shall not exceed the
book value of the asset on the reversal date under the assumption that no impairment provision is made.
14.Long-term equity investment
Long-term equity investment of the Company is mainly about investment in subsidiary, investment in
associates and investment in joint-ventures.
For long-term equity investments acquired through business combination under common control, the initial
investment cost shall be the acquirer’s share of the carrying amount of net assets of the acquiree as of the
combination date as reflected in the consolidated financial statement of the ultimate controller. If the carrying
amount of net assets of the acquiree as of the combination date is negative, the investment cost of long-term
equity investment shall be zero. For long-term equity investment acquired through business combination not
under common control, the initial investment cost shall be the combination cost.
Excluding the long-term equity investment acquired through business combination, there is also a king of long-
term equity investment acquired through cash payment, for 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.
194
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
In case that investor loses joint control or significant influence over investee due to disposal of part equity
interest investment, the remaining equity interest shall be calculated according to Accounting Standards for
Business Enterprise No.22-Recognition and Measurement of Financial Instrument. Difference between the fair
value of the remaining equity interest as of the date when loss of joint control or significant influence and the
carrying value is included in current gains and losses. Other comprehensive income recognized in respect of
the original equity interest investment under equity method should be treated according to the same basis which
the investee adopts to directly dispose the relevant assets or liabilities when ceasing adoption of equity method
calculation; and also switches to cost method for calculating the long-term equity investments which entitles
the Company to have conduct control over the invested units due to its additional investments; and switches to
equity method for calculating the long-term equity investments which entitles the Company to conduct
common control or significant influence, while no control over the invested units due to its additional
investments, or the long-term equity investments which entitles the Company with no control over the invested
units any longer while with common control or significant influence.
When disposing long-term equity investment, the balance between it carrying value and effective price for
obtaining shall be recorded into current investment income. When disposing long-term equity investment
which is calculated by equity method, the proportion originally recorded in owners’ equity shall be transferred
to current investment income according to relevant ratio, except for that other movements of owners’ equity
excluding net gains and losses of the invested units shall be recorded into owners’ equity.
15. Investment real estate
The investment real estate of the Company includes leased houses and buildings, and is accounted value by its
cost. Cost of purchased-in investment real estate consists of payment for purchase, relevant taxes and other
expenditure which is attributable to the assets directly; while cost of self-built investment real estate is formed
with all necessary expenditures occurred before construction completion of the assets arriving at the estimated
utilization state.
Consequent measurement of investment estate shall be measured by cost method. Depreciation is provided
with average service life method pursuant to the predicted service life and net rate of salvage value. The
predicted service life and net rate of salvage value and annual depreciation are listed as follows:
Predicted rate of salvage value Depreciation rate per
Category Depreciation term(Year)
(%) 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
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Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
the date of such turning. In situation of switch, the carrying value before the switch shall be deemed as the
credit value after the switch.
When investment real estate is disposed, or out of utilization forever and no economic benefit would be
predicted to obtain through the disposal, the Company shall terminate recognition of such investment real
estate. The amount of income from disposal, transfer, discarding as scrap or damage of investment real estate
after deducting the asset’ s carrying value and relevant taxation shall be written into current gains and losses.
16.Fixed assets
Fixed assets of the Company are tangible assets that are also held for the production of goods, provision of
services, rental or management of operations, have a useful life of more than one year and have a unit value of
more than 2,000 yuan.
Their credit value is determined on the basis of the cost taken for obtaining them. Of which, cost of purchased-
in fixed assets include bidding price and import duty and relevant taxes, and other expenditure which occurs
before the fixed assets arrive at the state of predicted utilization and which could be directly attributable to the
assets; while cost of self-built fixed asset is formed with all necessary expenditures occurred before
construction completion of the assets arriving at the estimated utilization state; credit value of the fixed assets
injected by investors is determined based on the agreed value of investment contracts or agreements, while as
for the agreed value of investment contracts or agreements which is not fair, it shall take its fair value as credit
value; and for fixed assets which are leased in through finance leasing, credit value is the lower of fair value
of leased assets and present value of minimized leasing payment as at the commencing date of leasing.
Consequent expenditure related to fixed assets consists of expenditures for repair and update reform. For those
meeting requirements for recognization of fixed assets, they would be accounted as fixed asset cost; and for
the part which is replaced, recognization of its carrying value shall cease; for those not meeting requirements
for recognization of fixed assets, they shall be accounted in current gains and losses as long as they occur.
When fixed asset is disposed, or no economic benefit would be predicted to obtain through utilization or
disposal of the asset, the Company shall terminate recognization of such fixed asset. The 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:
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Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
Predicted rate of salvage
No. Category Depreciation term Depreciation rate per year
value
1 House and buildings 30-40 years 4%-5% 2.375%-3.20%
2 Machinery equipment 10-14 years 4%-5% 6.786%-9.60%
3 Transport equipment 5-12 years 4%-5% 7.92%-19.20%
4 Other equipment 8-12 years 4%-5% 7.92%-12.00%
End of each year, the Company makes re-examination on predicted service life, predicted rate of salvage value
and depreciation method at each year-end. Any change will be treated as accounting estimation change.
17. Construction in progress
On the day when the construction in progress reaches the expected usable state, it will be carried forward to
fixed assets according to the estimated value based on the construction budget, cost or actual construction cost,
and depreciation will be accrued from the next month, and the difference in the original value of fixed assets
shall be adjusted after the completion of the final accounting procedures.
18. Borrowing expense
For the incurred borrowing expense that can be directly attributable to fixed assets, investment real estate, and
inventory which require more than one year of purchase, construction or production activities to reach the
intended usable or saleable state, the capitalization begins when the asset expenditure has occurred, the
borrowing expense have occurred, and the acquisition, construction or production activities necessary to make
the asset reach the intended usable or saleable state have begun; when the acquisition, construction or
production of assets that meet the capitalization conditions reaches the intended usable or saleable state, stop
the capitalization, the borrowing expense incurred thereafter are included in the current profit and loss. If an
asset that meets the capitalization conditions is abnormally interrupted during the acquisition, construction or
production process, and the interruption lasts for more than 3 months, the capitalization of borrowing expense
shall be suspended until the acquisition, construction or production activities of the asset restart.
Capitalization shall be exercised for interest expense actually occurred from special borrowings in current
period after deduction of the interest income arising from unutilized borrowing capital which is saved in banks
or deduction of investment income obtained from temporary investment; For recognization of capitalized
amount of common borrowing, it equals to the weighted average of the assets whose accumulated expense or
capital disburse is more than common borrowing times capitalization rate of occupied common borrowing.
Capitalization rate is determined according to weighted average interest rate of common borrowing.
19. Right-of-use assets
Upon becoming a lessee under a lease contract, the Company is entitled to receive substantially all of the
economic benefits, arising from the use of the identified assets during the period of use and is entitled to
recognized the right-of-use assets at the sum of the present value of the lease liability, prepaid rent and initial
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Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
direct costs, and to recognized the depreciation and interest expenses respectively, when the use of the
identified assets dominates during that period of use.
When the Company becomes the lessee of a lease contract, for short-erm leases of less than one year without
a purchase option and leases with a value of less than 40000 yuan (excluding sublease or expected sublease
assets), the Company elects to follow simplified treatment and record the related assets at cost or current
gain/loss on a straight-line basis over the lease period.
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
198
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
period would not be recognized as assets in later period. Expenditure arising during development phase which
has been starting capitalization is listed in balance sheet as development expenditure, and transferred to
intangible assets since the project reaches at predicted utilization state.
22. Impairment of long-term assets
As at each balance sheet date, the Company has inspection onfixed 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. Contract liability
Contract liabilities reflect the Company's obligation to transfer goods to customers for consideration received
or receivable from customers. Before the Company transfers the goods to the customer, if the customer has
paid the contract consideration or the Company has obtained the right to unconditionally receive the contract
consideration, the contract liability is recognized based on the received or receivable amount at the earlier time
point of the actual payment by the customer and the payment due.
199
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
24. Goodwill
Goodwill represents balance between equity investment cost or business combination cost under no common
control exceeding the attributable part or fair value of recognizable net assets of party invested or purchased
(obtained through business combination) as of acquisition day or purchase day.
Goodwill relating to subsidiaries is separately listed in consolidated financial statement. And goodwill relating
to associates and joint-ventures is included in carrying value of long-term equity investment.
25.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.
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.
200
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
The early retirement policy for staff and workers of the Company is the compensation for encouraging staff
and workers to accept the reduction voluntarily. The employees make applications voluntarily, the two parties
sign the compensation agreement after approved by the Company and calculate the compensation amount
according to the compensation standard passed by the staff representative conference, and the Company
confirms it as dismiss welfare and reckons it in current profits and losses. As the Company promises to adjust
the treatment for early retiring staff and workers with the increase of social basic cost of living allowances, the
discount elements will not be considered for calculating the dismiss welfare.
27.Lease liability
Upon becoming a lessee under a lease contract, the Company recognizes a lease liability for the leased-in asset
at the present value of the unpaid lease payments, net of lease incentives (except for short-term leases and
leases of low-value assets for which simplified treatment is elected), when it is entitled to receive substantially
all of the economic benefits arising from the use of the identified asset during the period of use and is entitled
to dominate the use of the identified asset during that 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. Special reserve
The work safety expense extracted according to the regulations will be included in the cost of related
products or the current profit and loss, and also included in the special reserve; When used, it will be treated
separately according to whether fixed assets are formed or not: if it is an expense expenditure, the special
reserve will be directly offset; If the fixed assets are formed, the expenses incurred shall be collected, and the
fixed assets shall be confirmed when the predetermined usable state is reached, and at the same time, the
equivalent special reserve shall be offset and the equivalent accumulated depreciation shall be confirmed.
30. 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 recognized when 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
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Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
of the goods or services promised by each individual performance obligation on the date of the contract. The
revenue is measured according to the transaction price of each individual performance obligation.
The transaction price is the amount of consideration that the Company expects to be entitled to receive due to
the transfer of goods or services to customers, excluding payments on behalf of third parties. The transaction
price confirmed by the Company does not exceed the amount at which the cumulatively recognized revenue
will most likely not to undergo a significant switch back when the relevant uncertainty is eliminated. The
money expected to be returned to the customer will be regarded as a return liability and not included in the
transaction price. If there is a significant financing component in the contract, the Company shall determine
the transaction price based on the amount payable on the assumption that the customer pays in cash when
obtaining the control of the goods or services. The difference between the transaction price and the contract
consideration shall be amortized by the effective interest method during the contract period. On the starting
date of the contract, if the Company expects that the interval between the customer's acquisition of control of
the goods or services and the customer's payment of the price doesn’t exceed one year, the significant financing
components in the contract shall be ruled out.
When meeting one of the following conditions, the Company is to perform its performance obligations within
a certain period of time, otherwise, it is to perform its performance obligations at a certain point in time:
1) The customer obtains and consumes the economic benefits brought by the Company's performance at the
same time as the Company's performance;
2) Customers can control the products under construction during the performance of the Company;
3) The goods produced by the Company during the performance of the contract have irreplaceable uses, and
the Company has the right to collect payment for the accumulated performance part of the contract during the
entire contract period.
For performance obligations performed within a certain period of time, the Company recognizes revenue in
accordance with the performance progress during that period and determine the progress of performance in
accordance with the output method. When the performance progress cannot be reasonably determined, if the
cost incurred by the Company is expected to be compensated, the revenue shall be recognized according to the
amount of the cost incurred until the performance progress can be reasonably determined.
For performance obligations performed at a certain point in time, the Company recognizes revenue at the point
when the customer obtains control of the relevant goods or services. When judging whether a customer has
obtained control of goods or services, the Company will consider the following signs:
1) The Company has the current right to collect payment for the goods or services;
2) The Company has transferred the goods in kind to the customer;
3) The Company has physically transferred the goods to the customer;
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Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
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.
31. 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.
32. 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
203
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
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.
33.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 a lease contract, for short-erm leases of less than one year without
a purchase option and leases with a value of less than 40,000 yuan (excluding sublease or expected sublease
assets), the Company elects to follow simplified treatment and record the related assets at cost or current
gain/loss on a straight-line basis over the lease period.
When the Company becomes the lessor of a lease contract, it classifies the lease into an operating lease and a
finance lease at the lease commencement date. A finance lease is a lease that transfers substantially all the risks
and rewards associated with the ownership of an asset. Operating leases are leases other than finance leases.
Rentals under operating leases are recognized as income on a straight-line basis over the lease term. Finance
leases are recorded at the net lease investment value of the finance lease receivable, which is the sum of the
unguaranteed residual value and the present value of the lease receipts not yet received as of the
commencement 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
204
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
for the current 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.
34. Held-for-sale
(1)The Company classifies non-current assets or disposal groups that meet all of the following conditions as
held-for-sale: 1) according to the practice of selling this type of assets or disposal groups in a similar transaction,
the non-current assets or disposal group can be sold immediately at its current condition; 2) The sale is likely
to occur, that is, the Company has made resolution on the selling plan and obtained definite purchase
commitment, the selling is estimated to be completed within one year. Those assets whose disposal is subject
to approval from relevant authority or supervisory department under relevant requirements are subject to that
approval. Prior to the preliminary classification of non-current assets or disposal group as the category of held-
for-sale, the Company measures the carrying value of the respective assets and liabilities within the non-current
assets or disposal group under relevant accounting standards. For non-current asset or disposal group held for
sale, for which it is found that the carrying value is higher than its fair value less disposal expense during the
initial measurement or re-measurement on the balance sheet date, the carrying value shall be deducted to the
net amount of fair value less disposal expense, and the reduced amount shall be recognized as impairment loss
in profit or loss for the period, and provision of impairment of assets held for sale shall be provided for
accordingly.
(2)The non-current assets or disposal group that the Company has acquired specially for resale are classified
as held for sale on the acquisition date when they meet the condition that “the selling is estimated to be
completed within one year” on the acquisition date, and are likely to satisfy other conditions of being classified
as the type of held for sale in a short-term (usually being 3 months). Non-current assets or disposal group
classified as held for sale are measured at the lower of their initial measurement amount and the net amount
after their fair value less the selling expenses based on the assumption that such non-current assets or disposal
group are not classified as held for sale at the time of initial measurement. Except for the non-current assets or
disposal group acquired in a business combination, the difference arising from considering the net amount of
such non-current assets or disposal group after their fair value less the selling expenses as the initial
measurement amount is recorded in the current profit or loss.
205
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
(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
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.
206
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
35. 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.
36. 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 tothe tax
laws on the events and transactions incurred in the current period. The deferred income tax refersto 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.
37. 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.
38. 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
207
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
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.
(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.
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Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
Taking into account the various uncertainties during the ten years, the Company considers no discount factor
of such projected liabilities. Instead, the Company reviews the parameters (probility, proportion, maintenance
expense per single set) based on the actual occurrence of maintenance expenses as of each balance sheet date.
If obvious change is found, the Company will adjust the projected liabilities according to the latest parameters
so as to reflect the best estimation.
39. 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.
40. 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
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Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
Tax (expenses) Tax (expenses) base Tax (expenses) rate
VAT Income from sales of goods and from processing 13%, 9%, 6%, 5%, 3%
Urban maintenance and
Turnover tax 5% or 7%
construction tax
Education surcharge Turnover tax 3%
Local education
Turnover tax 2%
surcharge
Corporate income tax Taxable income 15%,20%,25%,22%,29%、30%
Original Book value of house property×(1-30%)or
House Property Tax 1.2% or12%
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. 20%
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 15%
Hefei Changhong Meiling Life appliance Co., Ltd. 15%
CH-Meiling International (Philippines) Inc. 30%
ChanghongRuba Trading Company (Private) Limited 29%
CHANGHONG MEILING ELECTRIC INDONESIA,PT 22%
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-
210
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
tech enterprise certificate numbered GR202034000072 approved by the Anhui Provincial Department of
Science and Technology, Anhui Provincial Department of Finance, and Anhui Provincial Taxation Bureau of
the State Administration of Taxation, and enjoys 15% rate for the income tax for State Hi-Tech Enterprise for
three years term.
(3) On December 9, 2020, the subsidiary Zhongshan Changhong Electric Co., Ltd., was included in the “Notice
on Publicizing the List of the Second Batch of High-tech Enterprises to be Recognized in Guangdong Province
in 2020'' published by the Office of the National High-tech Enterprise Certification Management Leading
Group, and continues to enjoy 15% rate for the income tax for State Hi-Tech Enterprise for three years term.
(4) 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.
(5) The subsidiary Guangdong Changhong Meiling Ridian Technology Co., Ltd. has passed the qualification
of high-tech enterprise certification on 22 December 2022, and enjoys 15% rate for the income tax for State
Hi-Tech Enterprise for three years term.
(6) The subsidiary Hong Yuan Ground Energy Heat Pump Tech. (Zhongshan) Co., Ltd. has passed the
qualification of high-tech enterprise certification on 22 December 2022, and enjoys 15% rate for the income
tax for State Hi-Tech Enterprise for three years term.
(7) 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.
(8) The subsidiary Jiangxi Meiling Electric Appliance Co., Ltd. has passed the qualification of high-tech
enterprise certification on 4 November 2022, and enjoys 15% rate for the income tax for State Hi-Tech
Enterprise for three years term.
(9) 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.
(10) 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.
(11) 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
211
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
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.
(12) The subsidiary Hebei Meiling Wulian 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
eenterprises for three years term.
(13) The subsidiary Hebei Changhong Meiling Life Appliance Co., Ltd. has passed the qualification of high-
tech enterprise certification on 18 November 2022, and enjoys 15% income tax rate for national payroll
technology eenterprise for three years term.
VI. Notes to th e major items in the con solida ted financia l statemen ts
With respect to the financial statements figures disclosed below, unless otherwise specified, “year-beginning”
refers to Jan. 1, 2022; “year-end” refers to Dec. 31, 2022; “Current Year” refers to Jan. 1 to Dec. 31, 2022; “the
last year” refers to Jan. 1 to Dec. 31, 2021; the currency is RMB.
1. Monetary fund
Item Balance at year-end Balance at year-begin
Cash 21,243.42 28,447.21
Bank deposit 6,119,260,150.47 5,121,110,089.59
Other Monetary fund 712,717,808.79 805,215,921.34
Interest receivable on deposit 7,422,576.45 12,468,938.07
Total 6,839,421,779.13 5,938,823,396.21
Including: total amount deposited in overseas 9,295,065.32 8,156,154.33
Total use of restricted funds 718,777,132.92 86,159,526.57
Other monetary fund:
Item Balance at year-end Balance at year-begin
Cash deposit 712,177,743.52 776,959,862.25
B share repurchase 20,526,874.41
Frozen money 6,603,675.00
Co-managed account funds 506,171.40 504,702.66
Taobao account 74,572.96
Union Pay online 33,893.87 546,234.06
Total 712,717,808.79 805,215,921.34
(1) At the end of the year, the funds deposited in Sichuan Changhong Group Finance Co., Ltd. (hereinafter
212
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
referred to as "Changhong Finance Company", a non-bank financial institution approved by China Banking
Regulatory Commission (CBRC) [YJF (2013) No.423]) were converted into functional currency, totaling RMB
3,464,999,932.49, of which RMB 1,934,680,000.00 was time deposit, RMB 1,043,509,526.87 was current
deposit, and RMB 486,810,405.62 was the earnest money.
(2) The restricted monetary funds are the earnest money of RMB 712,177,743.52, the restricted balance
of the co-management account of RMB 506,171.40, and the bank deposit of RMB 6,093,218.00 frozen due to
litigation.
2. Tradable financial assets
Item Balance at year-end Balance at year-begin
Financial assets measured at fair value and whose changes are
included in current gains/losses 57,660,588.67 17,997,086.19
Including: Derivative financial assets 57,660,588.67 17,997,086.19
Tradable financial assets refers to the RMB forward exchange fund in Current Year
3. Note receivable
(1) Category of note receivable
Item Balance at year-end Balance at year-begin
Bank acceptance 2,216,752.22
Less: Bad debt provision
Book value 2,216,752.22
(2) Notes endorsement or discount and undue on balance sheet date
N/A
(3) Notes transfer to account receivable due for failure implementation by drawer at year-end
Amount of accounts receivable
Item
transferred at year-end
Bank acceptance 300,000.00
Trade acceptance 85,254,715.65
Total 85,254,715.65
(4) By accrual of bad debt provision
Amount at year-begin
Category Book balance Bad debt provision
Book value
Amount Ratio (%) Amount Ratio (%)
With bad debt provision
accrual on single item 2,216,752.22 100.00 2,216,752.22
Including: Bank acceptance 2,216,752.22 100.00 2,216,752.22
213
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
Amount at year-begin
Category Book balance Bad debt provision
Book value
Amount Ratio (%) Amount Ratio (%)
With bad debt provision
accrual on portfolio
Including: Trade acceptance
Total 2,216,752.22 100.00 2,216,752.22
1) Note receivable withdrawal bad debt provision on single item
Balance at year-begin
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
(2) Bad debt provision of note receivable that has been accrued, withdrawn, and reversed this year
N/A
(3) No note receivable actually written off in this year
N/A.
4. Account receivable
(1) Category of account receivable by bad debt accrual
Amount at year-end
Category Book balance Bad debt provision
Ratio Ratio Book value
Amount Amount
(%) (%)
Account receivable that withdrawal
781,312,227.18 49.90 140,035,432.60 17.92 641,276,794.58
bad debt provision by single item
Including: current payment with
651,212,122.14 41.60 111,191,911.65 17.07 540,020,210.49
related party
Account receivable with letter of
70,940,571.45 4.53 70,940,571.45
credit
Account receivable with single minor
amount but withdrawal single item bad 59,159,533.59 3.77 28,843,520.95 48.76 30,316,012.64
debt provision
Account receivable withdrawal
784,251,607.97 50.10 118,656,456.70 15.13 665,595,151.27
bad debt provision by portfolio
Including: account receivable of
201,410,848.70 12.87 24,773,169.64 12.30 176,637,679.06
engineering customers
Receivables other than engineering
582,840,759.27 37.23 93,883,287.06 16.11 488,957,472.21
customers
Total 1,565,563,835.15 100.00 258,691,889.30 16.52 1,306,871,945.85
Continued
214
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
Amount at year-begin
Category Book balance Bad debt provision
Ratio Ratio Book value
Amount Amount
(%) (%)
Account receivable that
withdrawal bad debt provision by 822,475,594.55 53.40 25,372,653.49 3.08 797,102,941.06
single item
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
single receivables, and withdrawal bad debt provision by combination shows no risk characteristic of the
receivables, 90 clients involved.
2) Account receivable withdrawal bad debt provision by portfolio
A.Account receivable of engineering customers
Balance at year-end
Account age Bad debt
Book balance Provision ratio (%)
provision
Within 3 months (3 months included) 46,445,327.67
More than 3 months and less than 6 months (6
18,955,344.03
months included)
Over 6 months and within one year (One year
42,492,137.30
included)
Over one year - within 2 years (2 years included) 73,286,167.38 14,657,233.48 20.00
Over 2 years - within 3 years (3 years included) 20,231,872.32 10,115,936.16 50.00
Over 3 years 100.00
Total 201,410,848.70 24,773,169.64
Continued
215
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
Balance at year-begin
Account age Bad debt
Book balance Provision ratio (%)
provision
Within 3 months (3 months included) 47,442,159.78
More than 3 months and less than 6 months (6
66,786,580.82
months included)
Over 6 months and within one year (One year
24,376,909.49
included)
Over one year - within 2 years (2 years included) 38,592,189.76 7,718,437.95 20.00
Over 2 years - within 3 years (3 years included) 13,266,474.64 6,633,237.32 50.00
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
Balance at year-end
Account age Bad debt
Book balance Provision ratio (%)
provision
Within 3 months (3 months included) 388,904,609.29 3,889,046.09 1.00
More than 3 months and less than 6 months (6
27,600,654.77 2,760,065.48 10.00
months included)
Over 6 months and within one year (One year
11,098,413.19 2,219,682.64 20.00
included)
Over one year - within 2 years (2 years included) 136,495,488.03 68,247,744.02 50.00
Over 2 years - within 3 years (3 years included) 9,874,225.80 7,899,380.64 80.00
Over 3 years 8,867,368.19 8,867,368.19 100.00
Total 582,840,759.27 93,883,287.06
Continued
Balance at year-begin
Account age Bad debt
Book balance Provision ratio (%)
provision
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 (6
68,972,844.55 6,897,284.46 10.00
months included)
Over 6 months and within one year (One year
126,004,879.57 25,200,975.91 20.00
included)
Over one year - within 2 years (2 years included) 12,130,576.34 6,065,288.17 50.00
Over 2 years - within 3 years (3 years included) 8,598,768.25 6,879,014.60 80.00
Over 3 years 10,730,696.69 10,730,696.69 100.00
216
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
Balance at year-begin
Account age Bad debt
Book balance Provision ratio (%)
provision
Total 526,432,316.34 58,773,205.34
(2) By account age
Account age Balance at year-end Balance at year-begin
Within 3 months (3 months included) 839,113,924.70 1,081,226,013.94
More than 3 months and less than 6 months (6 months
319,861,920.01 162,654,138.54
included)
Over 6 months and within one year (One year included) 94,045,030.09 179,880,109.29
Over one year - within 2 years (2 years included) 241,992,516.95 63,134,405.85
Over 2 years - within 3 years (3 years included) 32,346,833.25 23,736,943.93
Over 3 years 38,203,610.15 29,697,184.83
Total 1,565,563,835.15 1,540,328,796.38
(3) Bad debt provision of accounts receivable this year
Changes this year
Balance at Balance at year-
Category Withdrawal Resale or Other
year-begin Accrual end
or reversal write-off decreases
Bad debt
99,454,105.10 165,423,701.32 2,834,795.58 1,307,424.41 2,043,697.13 258,691,889.30
provision
Total 99,454,105.10 165,423,701.32 2,834,795.58 1,307,424.41 2,043,697.13 258,691,889.30
(4) Account receivable actually written-off in Current Year: 1,307,424.41 yuan.
(5) Top five receivables collected by arrears party amounting to 800,614,365.63 yuan in total, accounted for
51.14% of the receivables of current year-end, the bad debt provision accrual correspondingly amounting to
141,110,475.64 yuan at year-end balance.
(6) Account receivable terminated recognization due to the transfer of financial assets of 4, 4,808,159,143.67
yuan.
(7) No assets and liability transfer Account receivable and continues to involve at year-end.
5. Receivables financing
Item Balance at year-end Balance at year-begin
Bank acceptance 1,446,358,719.88 1,808,109,301.56
Total 1,446,358,719.88 1,808,109,301.56
(1) Notes receivable already pledged that presented in receivables financing at the end of the year:
217
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
Item Amount pledged at year-end Amount pledged at year-begin
Bank acceptance 405,400,483.49 385,477,263.99
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. 65.
Assets with restricted ownership or use rights.
(2) Notes endorsement or discount and undue on balance sheet date listed in receivables financing at the end
of the year
Amount derecognition at Amount without
Item
year-end derecognition at year-end
Bank acceptance 869,341,485.89
Total 869,341,485.89
6. Accounts paid in advance
(1) Age of account paid in advance
Balance at year-end Balance at year-begin
Item
Amount Ratio (%) Amount Ratio (%)
Within one year 39,700,777.69 86.57 28,208,857.49 94.77
1-2 years 5,042,628.29 11.00 1,557,939.85 5.23
2-3 years 1,116,085.57 2.43
Over 3 years
Total 45,859,491.55 100.00 29,766,797.34 100.00
(2) Top 5 of account paid in advance in balance at year-end amounting to 38,269,243.31 yuan, accounted for
83.45% of the account.
7. Other account receivable
Item Balance at year-end Balance at year-begin
Other account receivable 88,354,803.24 111,652,635.86
Total 88,354,803.24 111,652,635.86
(1) Category of other account receivable
Nature Book balance at year-end Book balance at year-begin
Export rebate 13,304,094.59 26,634,190.54
Cash deposit 53,876,630.71 70,481,345.37
Loans of employee’s pretty cash 19,142,320.86 12,299,111.06
Related party not in consolidation statement 716,725.90 718,189.14
Advance money temporary 3,122,122.93 355,045.58
218
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
Nature Book balance at year-end Book balance at year-begin
Other 1,174,866.78 2,289,144.60
Total 91,336,761.77 112,777,026.29
(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 for the whole
duration (credit
in 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 Year 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 Year 616,626.62 1,241,233.63 1,857,860.25
Reversal in Current Year
Conversion in Current Year
Write off in Current Year
Other change 292.15 292.15
Balance as at 31 Dec. 2022 1,690,724.90 1,291,233.63 2,981,958.53
(3) By account age
Account age Balance at year-end Balance at year-begin
Within 3 months (3 months included) 32,703,626.46 50,798,283.74
More than 3 months and less than 6 months (6
3,033,052.73 15,511,159.70
months included)
Over 6 months and within one year (One year
9,242,123.46 7,875,791.66
included)
Over one year - within 2 years (2 years included) 16,985,265.38 28,844,885.97
Over 2 years - within 3 years (3 years included) 22,359,916.12 4,113,598.75
Over 3 years 7,012,777.62 5,633,306.47
Total 91,336,761.77 112,777,026.29
(4) Top 5 other receivables collected by arrears party at balance of period-end
219
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
Proportion in
Bad debt
total other
Balance at year- provision
Name Nature Account age receivables
end Balance at
ending balance
year-end
(%)
Unit I Tax rebate 13,304,094.59 Within 3 months 14.57
Unit II Cash deposit 8,780,849.40 2-3 years 9.61
Unit III Cash deposit 5,320,000.00 6 months-1 year 5.82
Unit IV Cash deposit 3,541,093.00 1-2 years 3.88
Unit V Cash deposit 2,044,912.00 1-2 years,2-3 years 2.24
Total — 32,990,948.99 36.12
(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
Amount at year-end
Inventory price decline
Item provision/contract
Book balance Book value
performance cost
impairment provision
Raw materials 174,848,711.84 6,676,011.97 168,172,699.87
Stock commodities 938,676,768.88 48,374,183.50 890,302,585.38
Low value consumable articles 2,653,770.39 871,871.72 1,781,898.67
Goods in transit 578,924,325.36 6,074,817.77 572,849,507.59
Goods-in-process 7,901,880.53 7,901,880.53
Contract performance cost 41,622,651.08 41,622,651.08
Deferred expense for mould 27,675,710.59 27,675,710.59
Total 1,772,303,818.67 61,996,884.96 1,710,306,933.71
Continued
Amount at year-begin
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
220
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
Amount at year-begin
Inventory price decline
Item provision/contract
Book balance Book value
performance cost
impairment provision
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
(2) Provision for inventory depreciation and contract performance cost impairment provision
Increase this year Decrease this year
Amount at year- Amount at
Item Reversal or
begin Accrual Other Other year-end
reselling
Raw materials 8,482,723.94 2,876,381.98 4,683,093.95 6,676,011.97
Stock
51,052,406.21 25,372,422.96 28,031,476.43 19,169.24 48,374,183.50
commodities
Goods in transit 8,068,827.90 12,499,860.40 14,493,870.53 6,074,817.77
Low value
consumable 954,827.34 800,167.21 883,122.83 871,871.72
articles
Contract
performance 241,230.88 241,230.88
cost
Total 68,800,016.27 41,548,832.55 48,332,794.62 19,169.24 61,996,884.96
(3) Accrual for inventory falling price reserves
Reasons for the reversal or
Item Specific basis for determining of net realizable value
reselling in Current Year
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 balance Book value Book value
provision balance provision
Warranty 4,301,610.03 770,687.90 3,530,922.13
Total 4,301,610.03 770,687.90 3,530,922.13
221
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
(2) Provision for impairment of contract asset in the Period
Withdrawal or
Items Accrual Resale or write-off Reason
reversal
Bad debt provision 770,687.90
Total 770,687.90 —
10. Non-current assets coming due within one year
Balance at year-end Balance at year-begin
Items
Debt investment due within one yea 170,167,638.89
Total 170,167,638.89
11. Other current assets
Item Balance at year-end Balance at year-begin
Value-added tax to be deducted 39,540,856.28 110,346,536.34
Advance payment of income tax 22,673,762.88 6,114,297.55
Contract acquisition cost 5,654,727.03 7,740,783.12
Prepaid disability insurance 39,317.44
Held to maturity fixed deposits 50,559,479.17
Local sales tax in Pakistan 1,269,125.78
Other 891,480.71
Total 120,589,431.85 124,240,934.45
12.Creditor's rights investment
Balance at year-end Balance at year-begin
Items Impairment Book Impairmen
Book balance Book value Book value
provision balance t provision
Large certificates
121,543,750.00 121,543,750.00
of deposit
Total 121,543,750.00 121,543,750.00
222
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
13. Long-term equity investment
Changes in Current Year
Balanc
Other e at
Balance at Additi Investment compreh Other Provisi Balance at year- year-
Invested enterprise Declaration of
year-begin onal Disinve profit and loss ensive changes on for Oth end end of
cash dividends
invest stment confirmed by income of impair er impair
or profits
ment equity method adjustme equity ment ment
nt
Associated companies
1.Hefei Xingmei Assets Management Co.,
19,835,366.84 5,133,209.60 5,069,400.00 19,899,176.44
Ltd.
2.Sichuan Zhiyijia Network Technology Co.,
34,084,025.62 17,766,153.99 51,850,179.61
Ltd. note1
3.Hong Yuan Ground Energy Heat Tech. Co.,
20,630,114.17 -3,611,072.36 17,019,041.81
Ltd.note2
4.Sichuan Tianyou Guigu Technology Co.,
2,974,188.94 136,392.93 3,110,581.87
Ltd.note3
5.Chengdu Guigu Environmental Tech. Co.,
9,107,964.96 -602,516.19 8,505,448.77
Ltd.note4
6.ChanghongRuba
ElectricCompany(Private)Ltd.note5
7.Hefei Xinmei Solar Energy Technology
1,617,928.00 1,617,928.00
Co., Ltd.note6
Total 86,631,660.53 20,440,095.97 6,687,328.00 100,384,428.50
223
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise 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 yuanwith shareholding
proportion of 30% and Sichuan Changhong Electric Co., LTD made contribution of 35 million yuanwith
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 Hengyou
yuan Technology Development Group Co., Ltd. (“Hengyou yuan”) cooperated to establish Hong Yuan 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 Hengyou yuan 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
224
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
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 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.
14. Other non-current financial assets
Item Ending balance Opening balance
Sichuan Changhong Group Finance Co., Ltd. 542,489,224.37 532,961,488.43
Sichuan Hongyun New-Generation Information technology
41,015,878.36 44,018,952.27
Venture Capital Fund Partnership (limited partnership)
Changhong Group Sichuan Shenwan Hongyuan Strategic
40,044,345.58
New Industrial Parent Fund Partnership (limited partnership)
Huishang Bank Co., Ltd. 5,000,000.00 5,000,000.00
Total 628,549,448.31 581,980,440.70
15. Investment real estate
(1) Investment real estate measured at costs
Item House and buildings Total
I.Original book value
1.Balance at year-begin 60,688,532.10 60,688,532.10
2.Increase in this year 1,672,611.37 1,672,611.37
(1) Construction in progress transfer-in 1,672,611.37 1,672,611.37
3.Decrease in this year
4.Balance at year-end 62,361,143.47 62,361,143.47
II.Accumulated depreciation and accumulated
amortization
1.Balance at year-begin 7,538,597.65 7,538,597.65
2.Increase in this year 1,924,484.93 1,924,484.93
(1)Provision or amortization 1,924,484.93 1,924,484.93
225
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
Item House and buildings Total
3.Decrease in this year
4.Balance at year-end 9,463,082.58 9,463,082.58
III.Impairment provision
IV.Book value
1.Ending book value 52,898,060.89 52,898,060.89
2. Opening book value 53,149,934.45 53,149,934.45
(2) No investment real estate measured by fair value at year-end.
(3) Particular about mortgage of investment property at year-end.
Accumulated Impairment
Name Original book value Book value
depreciation provision
House and buildings 5,795,017.72 2,516,796.28 3,278,221.44
(4) Investment real estate without property certification held
Reasons for failing to complete
Item Book value
property rights certificate
Related property rights in
J04workshop 27,608,901.81
procedure
Related property rights in
J03workshop 19,079,284.46
procedure
Related property rights in
J20 air compressor station workshop 1,363,379.03
procedure
Related property rights in
J18 opening and closing office 659,781.87
procedure
Total 48,711,347.17
16. Fixed assets
Item Ending book value Opening book value
Fixed assets 2,197,260,683.20 2,227,247,182.81
Disposal of fixed assets 32,293,183.76 75,875,517.11
Total 2,229,553,866.96 2,303,122,699.92
16.1 Fixed assets
(1) Fixed assets
House and Machinery Transport
Item Other equipment Total
buildings equipment equipment
I.Original book value
1.Balance at year-begin 1,688,670,197.57 1,768,708,568.16 34,465,918.34 220,259,731.03 3,712,104,415.10
2.Increase in this year 33,406,770.15 153,890,428.61 2,587,362.39 25,744,754.19 215,629,315.34
(1)Purchase 10,837,230.20 1,006,678.43 10,194,005.47 22,037,914.10
226
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
House and Machinery Transport
Item Other equipment Total
buildings equipment equipment
(2)Construction in progress transfer-in 33,373,719.95 143,053,198.41 1,580,683.96 15,550,748.72 193,558,351.04
(3)Transfer-in of investment real estate 33,050.20 33,050.20
3.Decrease in this year 9,747,521.00 57,250,084.45 2,845,166.13 2,505,563.86 72,348,335.44
(1)Dispose or retirement 5,603,921.90 42,214,384.32 2,664,851.21 2,055,258.85 52,538,416.28
(2)Construction in progress transfer-in 15,030,137.37 15,030,137.37
(3)Decreased for change of foreign rate 157,015.92 434,772.35 591,788.27
(4)Temporary estimated decrease 4,143,599.10 5,562.76 23,299.00 15,532.66 4,187,993.52
4.Balance at year-end 1,712,329,446.72 1,865,348,912.32 34,208,114.60 243,498,921.36 3,855,385,395.00
II.Accumulated depreciation
1.Balance at year-begin 404,141,977.35 959,058,685.14 22,160,271.70 98,094,721.61 1,483,455,655.80
2.Increase in this year 53,765,144.15 147,665,734.13 2,950,782.94 17,461,192.40 221,842,853.62
(1)Accrual 53,765,144.15 147,665,734.13 2,950,782.94 17,461,192.40 221,842,853.62
3.Decrease in this year 2,650,171.03 42,412,485.79 2,664,973.20 1,515,760.22 49,243,390.24
(1)Dispose or retirement 2,650,171.03 38,300,533.73 2,538,022.63 1,234,274.34 44,723,001.73
(2)Construction in progress transfer-in 4,111,952.06 4,111,952.06
(3)Decreased for change of foreign rate 126,950.57 281,485.88 408,436.45
4.Balance at year-end 455,256,950.47 1,064,311,933.48 22,446,081.44 114,040,153.79 1,656,055,119.18
III.Impairment provision
1.Balance at year-begin 1,260,961.87 140,614.62 1,401,576.49
2.Increase in this year 479,025.48 868,678.48 1,347,703.96
(1)Accrual 479,025.48 868,678.48 1,347,703.96
3.Decrease in this year 679,687.83 679,687.83
(1)Dispose or retirement 679,687.83 679,687.83
4.Balance at year-end 1,060,299.52 1,009,293.10 2,069,592.62
IV.Book value
1.Ending book value 1,257,072,496.25 799,976,679.32 11,762,033.16 128,449,474.47 2,197,260,683.20
2. Opening book value 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 year mainly due to the 193,558,351.04 yuan transfer from construction in process;
decrease of the fixed assets in Current Year mainly including assets dispose for retirement.
(2) Fixed assets temporary idle at year-end.
Accumulated Impairment
Name Original book value Book value
depreciation provision
Machinery equipment 1,854,020.67 572,676.72 1,281,343.95
(3) Particular about mortgage of investment property at period-end
227
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
Accumulated Impairment
Name Original book value Book value
depreciation provision
House and buildings 477,550,851.88 141,937,109.02 335,613,742.86
(4) Fixed assets leased through operating lease at year-end
Accumulated Impairment
Item Original book value Book value
depreciation provision
House and buildings 73,601,326.58 27,839,014.41 45,762,312.17
Machinery equipment 20,976,176.45 11,004,856.14 9,971,320.31
Other equipment 3,656,583.85 2,116,349.54 1,540,234.31
Total 98,234,086.88 40,960,220.09 57,273,866.79
(5) Fixed assets without property certificate
Reason of not complete
Item Book value
the property certificate
Related property rights in
J07 electrical workshop 45,375,230.35
procedure
Related property rights in
Testing and experiment center building 37,237,821.41
procedure
Related property rights in
J02workshop 29,190,459.80
procedure
Related property rights in
J05 evaporator and condenser workshop 28,110,866.40
procedure
Related property rights in
J01workshop 27,055,773.54
procedure
Related property rights in
II section canteen of living area 19,789,611.05
procedure
Related property rights in
J06 central air-conditioner workshop 19,088,777.67
procedure
Related property rights in
J50finished product warehouse 16,815,043.83
procedure
Related property rights in
J51finished product warehouse 16,315,303.77
procedure
Related property rights in
J53finished product warehouse 12,379,999.25
procedure
Related property rights in
J52finished product warehouse 11,828,694.49
procedure
Related property rights in
J54finished product warehouse 11,570,819.46
procedure
Related property rights in
J52finished product warehouse 10,667,872.77
procedure
Related property rights in
J55finished product warehouse 10,667,872.77
procedure
Related property rights in
J09raw material warehouse 6,470,467.03
procedure
Related property rights in
J10raw material warehouse 5,000,532.72
procedure
Related property rights in
J11raw material warehouse 4,926,148.78
procedure
Related property rights in
J08 packing materials warehouse 4,487,267.91
procedure
Related property rights in
4# makeshift shelter 4,341,369.51
procedure
Related property rights in
J17 chemical storage 1,536,669.90
procedure
Related property rights in
J15 house of refrigerant forklift 1,505,865.19
procedure
228
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
Reason of not complete
Item Book value
the property certificate
Related property rights in
J16 chemical storage 1,240,156.69
procedure
Related property rights in
J19 main guard room 367,877.97
procedure
Related property rights in
J19A guard room 195,165.44
procedure
Related property rights in
J19D guard room 143,412.11
procedure
Related property rights in
J19E guard room 143,412.11
procedure
Total 326,452,491.92
(6) No fixed assets held for sale at year-end
16.2 Disposal of fixed assets
Amount at year- Reasons for disposal
Item Amount at year-begin
end transferred
Relocation for land
Relevant assets disposal for reserved lands 32,293,183.76 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 year-end.
229
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
17. Construction in progress
Item Balance at year-end Balance at year-begin
Construction in progress 66,522,492.77 98,469,862.45
Total 66,522,492.77 98,469,862.45
(1) Details of construction in progress
Amount at year-end Amount at year-begin
Items Book Impairment Book Impairment
Book value Book value
balance provision balance provision
Industrial Internet
Changhong Meiling 13,041,733.93 13,041,733.93 10,480,730.43 10,480,730.43
Promotion Project
Comprehensive renovation
project of mixed flow of
6,995,545.89 6,995,545.89 4,385,756.91 4,385,756.91
rainwater and sewage in
freezer park and living area
Meiling extrusion line
relocation and capacity 6,938,682.02 6,938,682.02 3,875,215.73 3,875,215.73
expansion project
Multi-door shell molding
5,053,126.87 5,053,126.87
line
Front-end expansion project
of Hefei base with an
3,242,813.99 3,242,813.99 16,686,639.69 16,686,639.69
annual output of 10 million
refrigerator cabinets
Freeze lining structure
changed to bottom package 2,886,521.55 2,886,521.55
side
Commercial kitchen
2,627,743.25 2,627,743.25
refrigerator cabinet project
Comprehensive renovation
project of mixed flow of
2,597,950.95 2,597,950.95
rainwater and sewage in
freezer park and living area
Laboratory investment
2,384,325.39 2,384,325.39
projects
Door lining to homemade
2,328,292.80 2,328,292.80
phase I project
Supporting production
equipment of washing 1,919,823.02 1,919,823.02
machine
Large refrigerator low
boiling point foaming
1,652,011.04 1,652,011.04
equipment renovation
project
Accident emergency pool
1,539,361.49 1,539,361.49
construction project
Refrigerator park 35 kV
substation construction 1,273,661.54 1,273,661.54
project
Zhongshan Changhong
technical transformation 615,619.91 615,619.91 4,530,389.50 4,530,389.50
project
Liquid nitrogen tank
production line construction 560,521.11 560,521.11 6,778,105.41 6,778,105.41
project
Meiling PLM project 237,168.14 237,168.14 1,636,792.46 1,636,792.46
230
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
Amount at year-end Amount at year-begin
Items Book Impairment Book Impairment
Book value Book value
balance provision balance provision
21 years of Manufacturing
System Automation Project 186,700.00 186,700.00 13,973,307.43 13,973,307.43
(Phase I)
Efficiency improvement of
182,748.20 182,748.20 4,704,867.17 4,704,867.17
refrigerator cabinet
Overseas product upgrade
supporting box shell line,
door shell line and some 3,731,036.22 3,731,036.22
old product competitiveness
improvement projects
Washing machine business
unit MES system online 2,457,735.83 2,457,735.83
project
The third floor testing and
packaging line technical 2,707,964.62 2,707,964.62
transformation project
2022 capacity and
capability improvement of
the manufacturing system 6,419,964.72 6,419,964.72
in Air Conditioning
Company
Other petty projects 10,258,141.68 10,258,141.68 16,101,356.33 16,101,356.33
Total 66,522,492.77 66,522,492.77 98,469,862.45 98,469,862.45
(2) Changes in significant construction in progress
Transfer to
Book
Increase in fixed assets Other Book
balance at Sourceof
Projects Current balance at
period- in Current decrease funds
Period period-end
begin
Period
Front-end expansion project of Hefei
base with an annual output of 10 16,686,639.69 11,894,104.36 24,996,337.13 341,592.93 3,242,813.99 Self-raised
million refrigerator cabinets
(Continued)
including:
Interest
Proportion of interest
Budget (in 10 Accumulated capitalizat
project capitalized
Projects thousand Progress amount of interest ion rate of
investment in amount of
Yuan) capitalization Current
budget Current
Period
Period
Front-end expansion project of
Hefei base with an annual
4,121.24 76.76% 80.00%
output of 10 million refrigerator
cabinets
18. Right-of-use assets
Item House and buildings Total
I.Original book value
1.Balance at year-begin 54,071,205.97 54,071,205.97
231
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
Item House and buildings Total
2.Increase in this year 4,251,772.98 4,251,772.98
(1) Rent in 4,251,772.98 4,251,772.98
3. Decrease in this year
4.Balance at year-end 58,322,978.95 58,322,978.95
II.Accumulated depreciation
1.Balance at year-begin 8,703,287.66 8,703,287.66
2. Increase in this year 12,973,556.19 12,973,556.19
(1)Accrual 12,973,556.19 12,973,556.19
3. Decrease in this year
4.Balance at year-end 21,676,843.85 21,676,843.85
III.Impairment provision
1.Balance at year-begin
2. Increase in this year
3. Decrease in this year
4.Balance at year-end
IV.Book value
1.Ending book value 36,646,135.10 36,646,135.10
2. Opening book value 45,367,918.31 45,367,918.31
The Company accrual the depreciation on right-of-use assets from the commencement date of the lease period.
Depending on use of the assets, amount of accrual will included in costs of relevant assets or current gain/loss.
19. Intangible assets
(1) Intangible assets
Trademark Non-patent
Item Land use right Other Total
special right technology
I.Original book value
1.Balance at year-
869,724,297.57 283,292,439.34 549,144,800.67 137,253,797.42 1,839,415,335.00
begin
2.Increase in this year 92,927,348.72 31,128,053.22 124,055,401.94
(1)Purchase 443,152.20 1,339,017.35 1,782,169.55
(2) Internal research 91,544,681.68 29,789,035.87 121,333,717.55
（3）Other 939,514.84 939,514.84
3.Decrease in this year 4,925,680.89 4,280,328.88 8,594,198.29 17,800,208.06
(1) Disposal 4,925,680.89 4,280,328.88 161,699.32 9,367,709.09
(2)Other decreases 8,432,498.97 8,432,498.97
4.Balance at year-end 864,798,616.68 283,292,439.34 637,791,820.51 159,787,652.35 1,945,670,528.88
II.Accumulated
232
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
Trademark Non-patent
Item Land use right Other Total
special right technology
amortization
1.Balance at year-
198,473,939.86 283,292,439.34 348,547,882.12 27,185,807.78 857,500,069.10
begin
2.Increase in this year 18,409,649.29 105,404,686.91 27,431,849.23 151,246,185.43
(1)Accrual 18,409,649.29 105,404,686.91 27,431,849.23 151,246,185.43
3.Decrease in this year 1,924,297.31 4,280,328.88 3,042,638.92 9,247,265.11
(1) Disposal 1,924,297.31 4,280,328.88 161,699.32 6,366,325.51
(2)Other decreases 2,880,939.60 2,880,939.60
4.Balance at year-end 214,959,291.84 283,292,439.34 449,672,240.15 51,575,018.09 999,498,989.42
III.Impairment
provision
1.Balance at year-
24,003,670.24 4,508,495.33 28,512,165.57
begin
2.Increase in this year 9,816,696.96 7,274,668.72 17,091,365.68
(1)Accrual 9,816,696.96 7,274,668.72 17,091,365.68
3.Decrease in this year
4.Balance at year-end 33,820,367.20 11,783,164.05 45,603,531.25
IV.Book value
1.Ending book value 649,839,324.84 154,299,213.16 96,429,470.21 900,568,008.21
2. Opening book value 671,250,357.71 176,593,248.31 105,559,494.31 953,403,100.33
The intangible assets resulted from internal research takes 6.24% of the balance of intangible assets at year-end
(2) No land use right without property certification done at year-end
(3) Up to end of the 2022, mortgage of intangible assets is as follows:
N
Name Property certificate serials Area(M2) Net book value ot
e
Land use right HGYJCZi No.: 0121 27,120.22 16,458,756.38
Wan (2019) Property right of Hefei
No.:1148244/1148249/1148243/1148240/1148248/1148246/1148241/114
Land use right 477,550.03 225,610,852.00
8238/1149101/1148242/1148245/1148239/1148237/1148250/1148247/11
49102
Land use right Wan (2019) Property right of Feixi County No.:0061435/0061445 33,383.10 12,874,419.41
Wan (2019) Property right of Feixi County
Land use right No.:0061456/0061447/0061438/0061440/0061452/0061450/0061430/00 82,850.51 17,746,814.19
61657
Total 620,903.86 272,690,841.98
20. Development expense
233
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
Increase this year Decrease this year
Balance at Internal Included in Balance at
Item Confirmed as
year-begin development Othe current profits Othe year-end
r intangible assets r
expenditure and losses
Technology
development for 39,938,415.03 76,886,830.15 12,267,035.45 62,796,725.61 41,761,484.12
Air-conditioner
Technology
development for 47,790,575.83 81,812,957.17 10,679,634.61 58,536,991.94 60,386,906.45
refrigerator
Total 87,728,990.86 158,699,787.32 22,946,670.06 121,333,717.55 102,148,390.57
21. Goodwill
(1) Original value of goodwill
Increase this year Decrease this year
Formation Formation
Invested enterprise Balance at year- from from Balance at
begin Other Other year-end
enterprise enterprise
merger merger
Hefei Meiling Group Holdings
3,553,367.77 3,553,367.77
Limited
Total 3,553,367.77 3,553,367.77
(2) Impairment loss of goodwill
Balance at Increase this year Decrease this year Balance at
Invested enterprise
year-begin Accrual Other Accrual Other year-end
Hefei Meiling Group Holdings
3,553,367.77 3,553,367.77
Limited
Total 3,553,367.77 3,553,367.77
Note: The Company’s goodwill has been fully accrued for impairment reserves at year-end.
22. Long-term prepaid expenses
Opening Increase this Amortization
Item Other decreases Ending balance
balance period for the period
Long-term
16,371,531.79 1,470,931.20 14,900,600.59
unamortized expenses
Total 16,371,531.79 1,470,931.20 14,900,600.59
23. Deferred tax assets and deferred tax liabilities
(1) Deferred income tax assets without the offset
234
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
Ending balance Opening balance
Item Deductible Deductible
Deferred income Deferred income
temporary temporary
tax assets tax assets
difference difference
Deferred income tax assets recognized from
220,654,506.50 33,098,175.98 145,988,355.30 21,966,046.25
assets impairment
Deferred income tax assets recognized from
12,624,332.22 1,893,649.84 11,363,601.65 1,704,540.25
accrual liability
Deferred income tax assets recognized from
9,072,708.08 1,360,906.21 11,268,982.33 1,690,347.35
Dismission welfare
Deferred income tax assets recognized from
100,794,535.00 15,119,180.24 110,534,463.54 16,580,169.53
deferred income
Deferred income tax assets recognized from ir-
684,314,381.95 102,647,157.29 695,409,549.32 104,311,432.40
reparable losses
Deferred income tax assets recognized for development
5,632,939.75 844,940.96
expenditure
Accrued income tax assets 8,718,636.16 1,666,526.91 8,238,783.30 1,235,817.50
Total 1,041,812,039.66 156,630,537.43 982,803,735.44 147,488,353.28
(2) Deferred income tax liabilities without the offset
Ending balance Opening balance
Item Taxable Taxable
Deferred income Deferred income
temporary temporary
tax liability tax liability
differences differences
Recognized by fixed assets depreciation 27,362,815.80 4,104,422.37 23,595,650.26 3,539,347.53
Recognized by changes in fair value 57,642,166.20 8,646,324.93 40,873,919.41 6,131,087.92
Total 85,004,982.00 12,750,747.30 64,469,569.67 9,670,435.45
(3) Details of unrecognized deferred income tax assets
Item Ending balance Opening balance
Deductible temporary difference 168,621,827.52 94,823,765.42
Deductible loss 1,068,180,146.62 1,075,371,859.07
Total 1,236,801,974.14 1,170,195,624.49
24. Other non-current assets
Item Ending balance Opening balance
Prepaid equipment, engineering, etc. 893,238.57 3,087,780.59
Total 893,238.57 3,087,780.59
25. Short-term loans
（1） Classification of short-term loans
235
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
Category Ending balance Opening balance
Guaranteed loan 55,000,000.00 5,000,000.00
Loan in credit 619,000,000.00 615,000,000.00
Interest payable 143,916.67 2,874,652.77
Total 674,143,916.67 622,874,652.77
（2） Short-term loans overdue：N/A.
26. Trading financial liability
Item Balance at year-end Balance at year-begin
Trading financial liability 41,961,524.78 12,304,272.41
Including: Derivative financial liability 41,961,524.78 12,304,272.41
27. Note payable
Type Balance at year-end Balance at year-begin
Bank acceptance 4,814,889,712.60 4,663,885,311.94
Trade acceptance 149,484,800.00 175,952,005.84
Total 4,964,374,512.60 4,839,837,317.78
28. Account payable
(1) Account payable
Item Amount at year-end Amount at year-begin
Total 2,917,997,138.00 2,299,103,796.88
Including: Amount aged over 1 year 60,523,652.84 94,640,539.62
(2) No major account payable with over one year book age at year-end.
29. Contract liabilities
Item Balance at year-end Balance at year-begin
Total 358,755,397.77 515,004,115.23
Including: Amount aged over 1 year 29,823,819.05 17,740,130.48
30. Wages payable
(1) Category
Balance at year- Balance at year-
Item Increase this year Decrease this year
begin end
Short-term compensation 241,024,057.25 1,728,274,699.13 1,646,267,687.42 323,031,068.96
236
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
Balance at year- Balance at year-
Item Increase this year Decrease this year
begin end
After-service welfare- defined
2,495,637.65 120,586,262.52 102,585,475.85 20,496,424.32
contribution plans
Dismiss welfare 3,524,726.66 6,455,245.61 5,352,550.42 4,627,421.85
Total 247,044,421.56 1,855,316,207.26 1,754,205,713.69 348,154,915.13
(2) Short-term compensation
Balance at year-
Item Increase this year Decrease this year Balance at year-end
begin
Wages,bonuses,allowances and
234,141,842.08 1,557,982,762.44 1,480,276,525.45 311,848,079.07
subsidies
Welfare for workers and
100,023.78 44,847,702.18 44,545,169.14 402,556.82
staff
Social insurance 1,151,987.24 52,120,731.25 48,052,032.64 5,220,685.85
Including: Medical
1,080,480.56 48,302,600.73 44,571,328.90 4,811,752.39
insurance
Work injury insurance 10,353.31 3,507,503.01 3,192,679.70 325,176.62
Maternity insurance 61,153.37 310,627.51 288,024.04 83,756.84
Housing accumulation
4,861,802.68 69,569,530.45 69,315,982.27 5,115,350.86
fund
Labor union expenditure
and personnel education 768,401.47 3,753,972.81 4,077,977.92 444,396.36
expense
Total 241,024,057.25 1,728,274,699.13 1,646,267,687.42 323,031,068.96
(3) Defined contribution plans
Item Balance at year- Increase this year Decrease this year Balance at year-end
begin
Basic endowment
759,812.44 116,403,111.82 98,947,118.98 18,215,805.28
insurance
Unemployment insurance 1,735,825.21 4,183,150.70 3,638,356.87 2,280,619.04
Total 2,495,637.65 120,586,262.52 102,585,475.85 20,496,424.32
31. Tax payable
Item Balance at year-end Balance at year-begin
Value-added tax
30,277,729.74 93,229,596.44
Enterprise income tax
1,822,555.65 3,665,806.85
Individual income tax
4,799,031.61 2,593,701.11
Urban maintenance and construction tax
9,544,272.36 8,227,864.32
Real estate tax
3,658,985.41 3,758,773.24
237
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
Item Balance at year-end Balance at year-begin
Land use tax
1,431,191.08 1,550,831.89
Educational surtax
6,850,511.36 4,932,682.07
Stamp tax
3,654,400.08 3,798,892.56
Construction fund of Water
Conservancy Projects 668,948.01 606,448.87
Treatment fund for abandon electrics &
electronics 17,508,786.00 18,489,806.00
Other 71,467.32 1,020,458.53
Total 80,287,878.62 141,874,861.88
32. Other account payable
Item Balance at year-end Balance at year-begin
Dividend payable 4,978,994.16 4,753,764.56
Other account payable 823,228,574.05 746,699,003.44
Total 828,207,568.21 751,452,768.00
32.1 Dividend payable
Item Balance at year-end Balance at year-begin
The People’s Insurance Company (Group) of China
432,607.23 432,607.23
Limited
Hefei Branch of Bank of China 391,245.50 360,506.00
Hefei Collective Industrial Associatio 391,244.89 360,505.44
Provincial trust and investment company Wuhu office 312,996.42 288,404.82
China Life Insurance Group Co., Ltd. 288,404.82 288,404.82
BOC- Fullgoal Tianyi Securities Investment Fund 153,697.50 153,697.50
Other units 3,008,797.80 2,869,638.75
Total 4,978,994.16 4,753,764.56
32.2 Other account payable
(1) Other account payable by nature
Nature Balance at year-end Balance at year-begin
Accrued expenses (expenses occurred without reimbursed) 344,028,624.89 364,248,335.74
Receivables received temporary and deducted temporary 13,166,091.61 26,847,048.85
Deposit, margin 174,331,550.53 148,778,715.05
Not the come-and-go with related parties in statement scope 278,716,366.01 187,411,658.83
Other 12,985,941.01 19,413,244.97
238
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
Nature Balance at year-end Balance at year-begin
Total 823,228,574.05 746,699,003.44
(2) At end of the year, the major other account payable with account age over one year mainly refers to the
deposit and margin.
33. Non-current liability due within one year
Item Balance at year-end Balance at year-begin
Long-term loan principal and interest due within one year 20,211,488.89 320,520,933.33
Long term account payable due within one year 173,499.29
Lease liabilities due within one year 10,075,610.19 12,024,045.63
Total 30,287,099.08 332,718,478.25
34. Other current liabilities
Item Balance at year-end Balance at year-begin
Pending sales tax 21,970,126.59 23,388,239.94
Factoring fees payable 635,142.92 785,519.22
Bill recovery 200,000.00
Total 22,605,269.51 24,373,759.16
35. Long term borrowings
(1) Category of long term borrowings
Category Amount at year-end Amount at year-begin
Loan in mortgage 148,000,000.00 168,000,000.00
Total 148,000,000.00 168,000,000.00
(2) Long-term borrowings at year-end
Foreign
Borrowing Interest
Loan from Returning day currenc Amount at year- Amount at year-
day rate end (RMB) begin(RMB)
y
EIBC (Export-Import
Bank) Anhui Province 2020/3/26 2026/11/25 RMB 4.405% 98,000,000.00 98,000,000.00
Branch note1
EIBC (Export-Import
Bank) Anhui Province 2019/12/23 2026/11/25 RMB 4.105% 50,000,000.00 70,000,000.00
Branch note2
Total 148,000,000.00 168,000,000.00
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 fixed assets and intangible assets are used
as mortgage for a long-term loan under the contract. And withdrawal of 98,000,000.00 yuan on March 26, 2020.
239
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
The term of the loan is from March 26, 2020 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 98,000,000.00 yuan. The balance at the end of the year is RMB
98,000,000.00.
Note 2: The Company signed the "Loan Contract (Promoting the Opening-up of Loans in China - Fixed Assets)"
with the Export-Import Bank of China Anhui Branch, the Company's investment real estate, fixed assets and
intangible assets are used as mortgage for the loan. The term of the loan is from 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 30,000,000.00 yuan. It plans
to repay 10,000,000.00 yuan on June 25, 2023 and repay 10,000,000.00 yuan on December 25, 2023, a total of
20,000,000.00 yuan has been reclassified to non-current liabilities due within one year. The balance at the end of
the year is RMB 50,000,000.00.
36. Lease liability
Item Balance at year-end Balance at year-begin
Lease liability 28,164,287.97 33,225,912.15
Total 28,164,287.97 33,225,912.15
37. Long-term payable
Item Balance at year-end Balance at year-begin
Special payable 1,145,286.48 1,337,643.24
Total 1,145,286.48 1,337,643.24
37.1 Special payable
Balance at year- Increase Decrease this Balance at year-
Item Reason
begin this year year end
Special funds for
Technology plan
technological
1,337,643.24 192,356.76 1,145,286.48 project in
transformation from
Zhongshan City
Zhongshan Changhong
38. Long-term wage payable
Item Balance at year-end Balance at year-begin
Dismissal welfare 10,790,859.64 9,828,300.06
Total 10,790,859.64 9,828,300.06
According to the internal early retirement policy, the long-term payable dismissal welfare bears by the Company
up to year-end amounting to10,790,859.64 yuan
240
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
39. Accrual liability
Item Balance at year-end Balance at year-begin Reason
Product quality guarantee note1 30,965,097.36 9,170,710.48 Guarantee of product
Guarantee fund for quality service note1 399,861.15 Guarantee of product
note2
Litigation matters 1,720,534.42 1,793,030.00
Total 32,685,631.78 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. Parts of the commitments on product quality assurance beyond the national three guarantees policy
are expired in 2022, the accrual liability that have not been anticipated has written-off in Current Year, actually
370,244.39 yuan written-off.
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". At present, the court is
organizing a third-party organization to conduct quality assurance for the objects under the contract. Zhongke
Meiling intends to maintain the cold storage project, and the estimated maintenance cost is 1,793,030.00 yuan.
40. Deferred income
(1) Classification of deferred income
Balance at year- Increase this Decrease this Balance at
Item Reason
begin year year year-end
Government subsidies---subsidies of
139,155,085.63 14,263,200.00 25,925,065.87 127,493,219.76
development project
Government subsidies---subsidies of
36,508,953.20 2,988,261.05 33,520,692.15
Relocation
Total 175,664,038.83 14,263,200.00 28,913,326.92 161,013,911.91
241
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
(2) Government subsidy
Amount reckoned
Amount at year- New subsidy in Other Amount at year- Assetsrelated/Income
Item into other income in
begin Current Year changes end related
Current Year
Demonstration factory construction for the intelligent
42,607,594.97 7,518,987.36 35,088,607.61 Assets related
manufacturing of intelligent air-conditioner
Demolition compensation of Changhong Meiling 36,104,113.24 2,583,421.09 33,520,692.15 Assets related
Centre for external cooperation of the environmental
7,687,368.20 1,031,509.06 6,655,859.14 Assets related
protection
Key chip and module for transducer used and detection
7,600,000.00 633,333.35 6,966,666.65 Assets related
capacity building
Adaptability improvement on new coolants production 7,094,945.01 2,364,981.72 4,729,963.29 Assets related
Subsidy for industrial development policy from Hefei for first
6,544,000.00 1,250,000.00 5,294,000.00 Assets related
half of 2018
Changhong Air Conditioner- relocation of production base and
6,497,777.76 1,146,666.72 5,351,111.04 Assets related
upgrading & expansion
District-level subsidy funds for advanced manufacturing
5,595,843.75 479,643.75 5,116,200.00 Assets related
policies in the first half of 2021
Advanced Manufacturing Policy Municipal Award in the first
5,222,875.00 166,780.89 5,056,094.11 Assets related
half of 2020
Subsidy for industrial development policy from Hefei for
4,471,375.00 894,275.00 3,577,100.00 Assets related
second half of 2019
Special fund, government subsidy CZ059001 4,200,000.00 4,200,000.00 Assets related
20-year subsidy for advancing technological transformation
4,108,758.34 535,925.00 3,572,833.34 Assets related
projects
Policy funds for manufacturing a strong province, subsidy for
equipment for the technological transformation of industrial 3,125,000.00 625,000.00 2,500,000.00 Assets related
strong base
3,056,250.00 261,964.29 2,794,285.71 Assets related
2021 manufacturing strong provincial policy subsidy funds
RESEARCH AND APPLICATION OF THE VISA
(VARIABLE FREQUENCY VOLUME INTEGRATED 3,053,488.40 1,409,302.32 1,644,186.08 Assets related
INTELLIGENT AIR-CONDITIONER)
Subsidy for industrial development policy from Hefei for first 3,005,983.33 434,600.00 2,571,383.33 Assets related
242
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
Amount reckoned
Amount at year- New subsidy in Other Amount at year- Assetsrelated/Income
Item into other income in
begin Current Year changes end related
Current Year
half of 2020
Government subsidy for new plant construction -
2,791,666.67 500,000.00 2,291,666.67 Assets related
industrialization of cryogenic refrigeration equipment
Subsidies for intelligent transformation & upgrading of
enterprises from the new industrialization policy in economic 2,675,064.58 605,675.00 2,069,389.58 Assets related
development zone
2020 supporting funds to support the innovation and
2,437,500.00 208,928.58 2,228,571.42 Assets related
development of artificial intelligence industry
2020 fund allocation for Anhui Province's triple innovation
2,369,791.67 325,000.00 2,044,791.67 Assets related
project
Research and application of the MCU chip for inverter
2,300,000.00 1,150,000.00 1,150,000.00 Assets related
control
Special funds for strategic emerging industry and high-end
1,896,551.72 413,793.00 1,482,758.72 Assets related
growth industry
Industrialization of intelligent white household appliances
software platform and typical application research and 1,575,757.60 727,272.72 848,484.88 Assets related
development
Equipment subsidy for the industrial base technical renovation
1,312,083.33 235,000.00 1,077,083.33 Assets related
from Economic and Information Commission
Upgrade project for the production line of Mianyang Meiling
1,119,166.76 197,499.96 921,666.80 Assets related
Intelligent Refrigerator
Subsidy from Zhongshan Finance Bureau (CZ028001
1,092,060.21 305,646.49 786,413.72 Assets related
provincial special project 2019)
Subsidy for equipment purchasing for Hefei Tech.
1,000,310.00 179,160.00 821,150.00 Assets related
Improvement project in 2017
Subsidy for purchase of R & D instruments and equipment 699,992.68 182,112.52 517,880.16 Assets related
Promotion of the energy-saving room air conditioner 648,453.69 210,309.24 438,144.45 Assets related
Emerging Industry Base Fund Support Item 613,608.25 76,701.04 536,907.21 Assets related
Robot policy-rewards for purchasing robots 485,031.26 70,125.00 414,906.26 Assets related
Promoting the new industry ( annual output of 0.6 million
medium& large volume environmental protection and energy 456,618.69 304,412.52 152,206.17 Assets related
saving freezer)
243
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
Amount reckoned
Amount at year- New subsidy in Other Amount at year- Assetsrelated/Income
Item into other income in
begin Current Year changes end related
Current Year
Demolition compensation of Jiangxi Meiling 404,839.96 404,839.96 Assets related
Special fund for technical improvement 380,238.04 103,809.60 276,428.44 Assets related
Special fund for technical improvement 355,708.62 95,810.44 259,898.18 Assets related
Technical transformation of refrigerator evaporator workshop 333,437.50 60,625.00 272,812.50 Assets related
2018 Zhongshan Special fund for industrial development 292,650.70 77,992.32 214,658.38 Assets related
Technical transformation subsidy 177,438.37 31,780.00 145,658.37 Assets related
Refrigerator evaporator production workshop 128,229.27 29,033.03 99,196.24 Assets related
Technical renovation of air conditioner production line 94,758.27 60,510.05 34,248.22 Assets related
Subsidy for the development on production line technical
47,707.99 40,892.59 6,815.40 Assets related
reform for green-friendly high-quality metal pipe
In the first half of 2022, advanced manufacturing policy
11,028,800.00 689,300.00 10,339,500.00 Assets related
urban level subsidies
21 District-level high-quality development policy (the
1,791,700.00 1,791,700.00 Assets related
second batch) award and subsidy funds
Provincial promotion of air conditioning production line
1,385,600.00 284,759.38 1,100,840.62 Assets related
upgrading technical transformation project
Policy subsidies for advanced manufacturing industry in the
57,100.00 5,947.93 51,152.07 Assets related
second half of 2021
Total 175,664,038.83 14,263,200.00 28,913,326.92 161,013,911.91
244
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
41. Share capital
Change during the year (+、-)
Balance at year- Shares Balance at year-
Items New shares
begin transferred from Other Subtotal end
issued
capitalreserve
Total
1,044,597,881.00 -14,674,166.00 -14,674,166.00 1,029,923,715.00
shares
Note: This year's decrease is the cancellation of 14,674,166 B shares.
42. Capital reserve
Amount at year-
Item Increase this year Decrease this year Amount at year-end
begin
Share premium 2,634,786,308.86 136,158,171.77 12,493,667.73 2,758,450,812.90
Other capital
48,043,091.40 48,043,091.40
reserve
Total 2,682,829,400.26 136,158,171.77 12,493,667.73 2,806,493,904.30
Note: Change of the share premium in the year mainly due to the buy-back of B-share 5,438.39 yuan in
the year; capital surplus of 872,219.17 yuan generated from the repurchase of minority’s interest of
Guangzhou Meiling in the year. Other changes in capital reserves this year are changes in capital
reserves of subsidiaries acquired by the associated enterprise Zhiyijia under the same control. The
company recognizes capital reserves of RMB 130,171.30 according to the shareholding ratio.
Note: The decrease of share capital premium this year is due to the B share repurchase fee of RMB
64.58 and the cancellation of stock shares of RMB 12,493,603.15; The increase this year is due to the
difference between the net assets share of Zhongke Meiling Cryogenics Co.,Ltd. calculated by the
Company according to the shareholding ratio before and after capital increase after the subsidiary
company publicly issued shares to unspecified qualified investors in 2022.
43. Treasury stock
Item Balance at year- Increase this year Decrease this year Balance at year-
begin end
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
245
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
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, the company held the 11th session of the 10thBOD, the directors of the company
unanimously agreed to the Proposal on Continuing Implementation and Partial Adjustment of the
Repurchase of Some Domestically Listed Foreign Shares (B Shares) of the Company", continued to
implement the Plan on Repurchasing Part of the Company’s Domestically Listed Foreign Shares (B
Shares) approved by the previous shareholders' meeting of the company; at the same time, the
repurchase period in the aforementioned plan was extended to February 18, 2022, that is, the repurchase
period was from August 18, 2020 to February 18, 2022; the repurchase price was adjusted from no more
than HK$2.15/share (inclusive) to no more than HK$2.36/share (inclusive) (not exceeding 150% of the
average trading price of the company's stock in the first 30 trading days prior to the reviews and approval
of the 11th meeting of the tenth BOD); the 9,582,882 B shares repurchased in the previous period would
be cancelled after the expiration of extension of the repurchase period.
By February 18, 2022, the Company had repurchased a total of 14,674,166 B shares, and on March
2, 2022, the cancellation procedures for repurchasing 14,674,166 B shares were completed in Shenzhen
Branch of China Securities Depository and Clearing Co., Ltd.
44. Other comprehensive income
246
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
Current Year
Less:
written in
other
comprehe
nsive Less
income in ：
Balance at Account Belong to Belong to Balance at
Item previous Inco
year-begin before income parent minority year-end
period me
tax in Current company shareholders
and tax
Year after tax after tax
carried expe
forward nses
to gains
and losses
in current
period
Other comprehensive income re-divided into gains/losses
Conversion
difference arising
from foreign -20,903,270.57 184,552.23 21,807.94 162,744.29 -20,881,462.63
currency financial
statement
Total -20,903,270.57 184,552.23 21,807.94 162,744.29 -20,881,462.63
45.Special reserves
Amount at year- Increase this Decrease this Amount at year-
Item
begin year year end
Safety production costs 2,467,205.78 2,467,205.78
Total 2,467,205.78 2,467,205.78
Note: This year's increase refers to the work safety expenses accrued according to the notice issued
by the Ministry of Finance on November 21, 2022 on printing and distributing the Administrative
Measures for the Extraction and Use of Work Safety Expenses of Enterprises (CZ [2022] No.136).
46. Surplus reserves
Amount at year- Decrease this Amount at year-
Item Increase this year
begin year end
Statutory surplus reserve 307,503,534.74 18,090,235.08 325,593,769.82
Discretionary surplus
115,607,702.16 115,607,702.16
reserve
Total 423,111,236.90 18,090,235.08 441,201,471.98
47. Retained profit
Item Current Year Last Year
Prior year-end balance 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
247
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
Item Current Year Last Year
Correction of former material error
Change of combination scope under common control
Balance at year-begin 734,129,724.00 740,754,202.23
Add: net profit attributable to shareholders of parent
244,538,734.49 51,898,388.84
company for this year
Less: withdraw of statutory surplus reserve 18,090,235.08 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
Balance at year-end 909,082,037.66 734,129,724.00
48. Operation income and operation cost
(1) Operation income and operation cost
Current Year Last Year
Item
Income Cost Income Cost
Main
20,037,625,297.52 17,325,069,941.59 17,331,645,754.46 15,273,131,473.38
business
Other
177,594,894.68 119,460,293.73 701,311,746.98 596,614,341.09
business
Total 20,215,220,192.20 17,444,530,235.32 18,032,957,501.44 15,869,745,814.47
(2) Main business classified according to product
Current Year Last Year
Product
Operation income Operation cost Operation income Operation cost
Refrigerator,
7,664,575,851.66 6,346,869,532.77 8,165,836,380.29 6,945,620,033.21
freezer
Air-conditioner 9,781,896,262.72 8,770,265,668.68 6,867,304,359.29 6,364,053,615.99
Washing
753,549,855.38 607,693,261.63 668,996,516.82 534,901,177.78
machine
Small
household
appliances and 1,605,989,880.27 1,408,047,190.15 1,330,315,557.62 1,154,251,783.53
kitchen and
bathroom
Other 231,613,447.49 192,194,288.36 299,192,940.44 274,304,862.87
Total 20,037,625,297.52 17,325,069,941.59 17,331,645,754.46 15,273,131,473.38
(3) Main business classified according to sales region
Current Year Last Year
Region
Operation income Operation cost Operation income Operation cost
Domestic 14,871,610,639.87 12,793,366,256.67 12,521,627,236.27 10,779,025,843.09
248
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
Current Year Last Year
Region
Operation income Operation cost Operation income Operation cost
Overseas 5,166,014,657.65 4,531,703,684.92 4,810,018,518.19 4,494,105,630.29
Total 20,037,625,297.52 17,325,069,941.59 17,331,645,754.46 15,273,131,473.38
Top five clients have income in sales of 11,790,336,957.70 yuan in total, a 58.32%% in total
operation income.
(4)Statement of revenue deduction
1)Information related to the transaction price allocated to the remaining performance obligations
2)At the end of this year, the income corresponding to the performance obligations that have been signed
but not yet fulfilled or not yet fully fulfilled is RMB 1,110,868,412.56, of which RMB 1,042,631,257.30
is expected to be recognized in 2023.
49. Business tax and extra charges
Item Current Year Last Year
Treatment fund for abandon electrics & electronics 71,372,020.99 44,423,770.00
City construction tax 19,846,779.61 19,468,269.04
Extra charge for education and local education
14,548,311.46 14,635,736.24
surcharge
Real estate tax 20,864,349.97 20,177,953.31
Stamp duty 16,752,387.61 15,103,354.99
Land use tax 7,416,201.59 8,323,457.05
Water fund 7,714,862.00 6,923,860.11
Other 14,546.06 11,363.34
Total 158,529,459.29 129,067,764.08
50. Sales expense
Item Current Year Last Year
Salary, extra charges and labor service expenses 615,364,927.31 570,204,800.54
Market support expenses 286,466,250.64 305,176,382.00
National three guarantees expense 203,466,003.55 141,027,709.39
Shipping and Installation expense 120,722,067.28 119,830,405.37
Storage lease expenses 75,019,986.16 100,617,796.86
Travelling expenses 19,660,517.01 29,229,678.19
Insurance 14,913,058.66 12,506,597.90
Business activity expenses 14,837,137.30 17,319,526.22
Vehicle expenses 14,012,267.21 9,068,901.91
Service 10,978,315.77 16,850,832.61
249
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
Item Current Year Last Year
Depreciation expenses 8,478,387.85 8,058,200.89
Advertising expenses 2,981,861.74 3,009,994.39
House-lease expenses 2,977,765.70 1,583,945.12
Meeting organization expenses 1,570,396.34 3,181,909.93
Communication expenses 852,388.41 943,777.71
Other expenses 36,573,660.54 26,029,945.72
Total 1,428,874,991.47 1,364,640,404.75
51. Administration expense
Item Current Year Last Year
Salary and social insurance etc. 226,027,033.59 212,452,104.33
Depreciation 22,139,475.42 23,489,510.10
Amortized intangible assets 18,097,815.58 18,074,719.94
Property insurance 7,095,645.48 5,264,916.64
Water and electricity fee 6,326,879.79 6,561,477.70
Business activities fee 4,538,295.97 5,277,048.90
Board fees 2,816,281.49 1,819,196.77
Domestic travelling fee 2,808,407.52 3,365,425.65
Office fee 1,589,370.87 1,954,323.86
Inspection and authentication fee 738,557.52 588,177.67
Other expenses 66,408,709.14 54,741,873.81
Total 358,586,472.37 333,588,775.37
52. R&D expenses
Item Current Year Last Year
Salary and social insurance etc. 237,572,628.90 169,613,060.06
Amortized intangible assets 126,373,792.68 123,668,238.26
Trial fee of R&D 72,478,568.76 41,894,900.89
Technical development cost 27,806,672.78 35,425,186.62
Cost of mould 26,976,366.44 9,335,908.93
Depreciation 19,226,603.19 17,122,874.36
Inspection and authentication fee 14,858,218.53 23,112,922.97
Domestic travel expenses 1,657,904.73 1,967,777.25
Software royalty 435,739.52 2,174,741.57
Other expenses 32,997,051.96 41,575,485.18
Total 560,383,547.49 465,891,096.09
53. Financial expenses
250
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
Item Current Year Last Year
Interest expenditure 30,470,512.88 71,229,760.29
Less: Interest income 159,034,499.30 140,024,813.71
Add: exchange loss 88,349,559.02 3,784,522.39
Procedure charge expenditure 12,041,091.12 19,062,243.58
Discount expenditure -29,168,764.27 -12,454,495.35
Interest expense on lease liability 2,127,420.51
Total -55,214,680.04 -58,402,782.80
54. Other income
Item Current Period Last Period
Immediate refund of VAT for software products 15,709,711.47 9,172,445.35
Demonstration factory construction for the intelligent manufacturing
7,518,987.36 6,892,405.03
of intelligent air-conditioner
Award funds for supporting the development of China Sound Valley 7,190,000.00
Enterprise listing reward 7,000,000.00
Project settlement and operation policy funds 6,500,000.00
High-quality development policy subsidies 4,989,100.00
Stable job subsidies 4,405,810.76
Export credit insurance subsidy 3,415,565.07 2,344,865.00
Advanced manufacturing development policy funds 3,300,000.00
Changhong Meiling demolition compensation 2,583,421.09 2,212,271.23
Provincial foreign trade funds (key and brand markets, enterprise
2,500,000.00
market development)
New refrigerant production adaptability transformation project 2,364,981.72 2,364,981.69
Reward and subsidy for the national specialized and special new
2,000,000.00 1,000,000.00
"little giant" enterprises
Policy subsidy funds for powerful manufacturing province 2,000,000.00
Other sporadic projects 1,834,567.71 3,495,382.00
Special funds for industrial development 1,530,000.00
VISA (Variable Frequency Integrated Smart Air Conditioning
1,409,302.32 1,409,302.32
System) research and application
Hefei Industrial Development Policy Subsidy Fund for the first half
1,250,000.00 1,250,000.00
year of 2018
R&D and application of frequency conversion control MCU chips 1,150,000.00
Changhong air conditioning production base relocation namely
1,146,666.72 382,222.24
capacity expansion and upgrading project
Foreign Cooperation Center Funding for Environmental Protection 1,031,509.06 773,631.80
Subsidy for product testing fees 1,000,000.00
Hefei Industrial Development Policy Subsidy Fund for the second
894,275.00 894,275.00
half of 2019,
Intelligent white goods software platform and typical application
727,272.72 727,272.73
R&D industrialization
Support for joint development of enterprises in the region 716,000.00
251
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
Item Current Period Last Period
Special funds for port logistics 715,750.00 1,144,395.00
City-level subsidies for advanced manufacturing policies in the first
689,300.00
half of 2022
658,260.00
Site container subsidies
Key chips, modules and testing capacity building projects for
633,333.35
inverters
Provincial strong manufacturing policy funds, industrial strong base
625,000.00 625,000.00
technology transformation equipment subsidies
Subsidies for intelligent transformation and upgrading of enterprises
605,675.00 605,675.00
bynew industrialization policy in the Economic Development Zone
High-tech enterprise awards 600,000.00
Individual tax handling fee refund 595,125.97 333,648.78
Patent Awards 573,865.00 515,800.00
A package of policy subsidies of Hefei City stabilizing the economy 539,232.93
Subsidies for promoting technological transformation projects in
535,925.00 178,641.67
2020
Subsidies for vocational training through work substitute training 514,920.00
New plant construction government subsidy - low-temperature
500,000.00 500,000.00
refrigeration equipment industrialization project
Science and technology innovation subsidies 500,000.00
NEEQ innovation layer reward 500,000.00
Subsidies for the capital project of trade services 495,750.00
District-level subsidy funds by advanced manufacturing policies In
479,643.75 373,056.25
the first half of 2021
Hefei Industrial Development Policy Project Subsidy in the first half
434,600.00 434,600.00
of 2020
Market development funds 426,001.00
Special funds for strategic emerging industries and high-end growing
413,793.00 103,448.28
industries
Jiangxi Meiling demolition compensation 404,839.96 1,779,888.60
Anhui Province Three Importance's and one Innovation project funds
325,000.00 230,208.34
allocation of 2020
R&D grants 308,200.00
Zhongshan Finance Bureau (CZ0280012019 provincial special
305,646.49 305,646.49
funds) funding
Promotion of new chemical industry (annual output of 600,000 units
of medium and large-volume environmental protection and energy- 304,412.52 304,412.52
saving freezer project)
VAT refund 301,135.59 2,095,773.00
Civil-military integration insurance premium subsidy 300,000.00 127,451.00
Talent subsidies 292,000.00 616,436.00
Provincial promotion of air conditioning production line technology
284,759.38
upgrade and transformation project
Matters related to the promotion of foreign investment and
280,949.43
cooperation
E-Commerce Association Project Funding 270,000.00
Technology insurance subsidies 266,350.00 600,000.00
Provincial policy subsidy funds for strong manufacturing province of
261,964.29 1,523,750.00
2021
252
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
Item Current Period Last Period
Special funds for business development in Zhongshan in 2022 240,388.00
Equipment subsidies for industrial strong base technology
transformation projects by the Economic and Information 235,000.00 235,000.00
Commission
Subsidies for instruments and equipment 224,400.00 265,400.00
Energy-saving room air conditioner promotion project 210,309.24 210,309.28
Industry matching funds for supporting the innovation and
208,928.58 162,500.00
development of the artificial intelligence in 2020
Provincial enterprise technology center awards 200,000.00
Product International certification subsidies 200,000.00
Excellent enterprise award funds 200,000.00
Mianyang Meiling smart refrigerator production line upgrade project 197,499.96 197,499.96
Special fund for Zhongshan technological transformation 192,356.76
Subsidies for the purchase of R&D instruments and equipment 182,112.52 182,112.52
Equipment purchase subsidies for Hefei technological transformation
179,160.00 179,160.00
projects of 2017
Municipal Award for Advanced Manufacturing Policy in the first half
166,780.89 746,125.00
of 2020
Hefei Standardization Policy Award 160,000.00 290,000.00
Standardization project award 160,000.00
Special funds for intellectual property 109,250.00 500,000.00
Special funds for technological transformation 103,809.60 103,809.60
Top 10 tax-paying enterprises incentive funds 100,000.00
Provincial circulation industry funds - market entities and
100,000.00
commercial brand cultivation of 2022
Special funds for industrial development in Zhongshan City of 2018 77,992.32 171,858.05
Technical transformation of the Athena project 869,687.50
Industrial Development Policy Subsidy Funds 27,000,000.00
Foreign economic and trade development funds of 2021 4,312,000.00
Foreign trade promotion policy funding of 2020 2,746,604.00
Provincial industrial development special project funds of 2021 2,200,000.00
Subsidies for special dual-innovation carrier projects 2,000,000.00
Settlement government subsidies 1,500,000.00
The first batch of provincial industrial development special fund
1,490,000.00
subsidies in 2021
Award for supporting the development of China Sound Valley in
1,395,000.00
2021
Industrialization Policy Award Supplement Fund in the Economic
1,140,400.00
Development Zone of 2019
The second batch of funds to support the construction project of
1,044,200.00
China Sound Valley in 2020
Product testing fee subsidies in 2020 1,000,000.00
Hefei smart home appliance (home) technology award in 2020 1,000,000.00
Industrial Internet Policy Award of 2021 1,000,000.00
253
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
Item Current Period Last Period
Incentives for major special projects in science and technology 1,000,000.00
"Double top-100" corporate rewards 1,000,000.00
Special funds for the construction of innovation capabilities and
900,000.00
industrial upgrading platforms
Revitalizing idle plant subsidies 843,732.00
Modern service industry development policy funds 714,500.00
2020Innovative development funding to undertake industrial transfer
652,039.00
to promote processing trade innovation and development
Skills upgrading training programs 600,000.00
Three Importance's and one Innovation project funds of 2021 500,000.00
Artificial intelligence project grants 414,000.00
Land use tax refund in the 4th quarter of 2020 400,534.76
The first batch of high science and technology innovation enterprise
400,000.00
awards in 2020
Property tax refund in the 4th quarter of 2020 373,459.10
Special award for energy conservation and ecological construction of
347,600.00
2021
Project of increasing the incentive for enterprises with outstanding
300,000.00
contributions to stabilizing foreign trade by Zhongshan City
District-level industrial policy, science and technology innovation
300,000.00
policy in 2019
Overseas investment insurance subsidies 290,171.00
Subsidies for scientific and technological innovation projects 281,000.00
Technological transformation financial incremental contribution
259,100.00
incentive policy awards of 2021
Special funds for industrial development in Zhongshan City of 2021 250,000.00
Policy supporting the separation of main business and auxiliary
249,845.00
business
"Innovation and entrepreneurship team at the start-up stage" award 200,000.00
Provincial service-oriented manufacturing demonstration enterprise
200,000.00
award
Anhui Province manufacturing high-end brand cultivation enterprise
200,000.00
project subsidy
Subsidies for industrialization projects of design achievements 200,000.00
Annual excellent enterprise award funds in 2020 200,000.00
Several support policy incentives for high-quality development in
170,000.00
2020
Special funds for port logistics in 2020 135,660.00
Support of the linkage development of the industry of 2020 128,100.00
Outstanding Contribution Award for Enterprises to Promote High-
120,000.00
quality Development
Science and technology innovation policy award in the Economic
104,000.00
Development Zone of 2020
Total 102,556,591.53 108,992,292.09
55. Investment income
254
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
Item Current Year Last Year
Long-term equity investment income by equity method 20,440,095.97 12,422,382.59
Investment income obtained from disposal of tradable financial
6,873,207.97 95,088,495.95
assets
Income from financial products 5,066,526.99 13,856,905.10
Investment income of other non-current financial assets during
-24,385,552.13
holding period
The termination of income recognition for financial assets
14,763,930.55
measured by amortized cost
Interest income from debt investment during the holding period 10,260,629.45 7,596,184.95
Total 33,018,838.80 128,963,968.59
56. Changes in fair value gains
Item Current Period Last Period
Trading financial assets 39,663,502.48 -29,245,252.88
Including :Income of fair value changes from derivative
39,663,502.48 -29,245,252.88
financial instruments
Trading financial liability -29,657,252.37 -7,720,195.90
Including: Income of fair value changes from derivative
-29,657,252.37 -7,720,195.90
financial instruments
Other non-current financial assets 14,131,251.16 33,831,509.36
Total 24,137,501.27 -3,133,939.42
57. Credit impairment loss
Item Current Year Last Year
Note receivable bad debt loss 8,481,942.30
Account receivable bad debt loss -162,588,905.74 -29,230,616.84
Other account receivable bad debt loss -1,857,860.25 -235,222.39
Total -164,446,765.99 -20,983,896.93
58. Assets impairment loss
Item Current Year Last Year
Loss on inventory valuation
-37,286,366.52 -49,526,210.35
Impairment loss on intangible assets -17,091,365.68 -7,957,831.68
Impairment loss on fixed assets -1,347,703.96
Impairment loss on contractual assets -770,687.90
Total -56,496,124.06 -57,484,042.03
59. Income from assets disposal
255
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
Amount reckoned
into non-recurring
Item Current Period Last Period
gains/losses in
Current Period
Income from non-current assets disposal 27,602,023.18 -133,214.72 27,602,023.18
Including: income classify to assets ready for
sale
income not classify as to assets ready for sale 27,602,023.18 -133,214.72 27,602,023.18
Including: Income from fixed assets
disposal
15,371,880.61 -133,214.72 15,371,880.61
Income from intangible assets disposal 12,230,142.57 12,230,142.57
Total 27,602,023.18 -133,214.72 27,602,023.18
60. Non-operation revenue
Amount reckoned
into non-recurring
Item Current Period Last Period
gains/losses in
Current Period
Income of penalty 1,731,499.87 1,258,456.10 1,731,499.87
other 7,517,843.40 8,763,597.78 7,517,843.40
Total 9,249,343.27 10,022,053.88 9,249,343.27
61. Non-operating expenditure
Amount reckoned into non-
Item Current Period Last Period recurring gains/losses in
Current Period
Non-current asset retirement
1,467,133.15 1,524,444.23 1,467,133.15
losses
Public welfare donation
1,611,780.39 11,000.00 1,611,780.39
expenditure
Penalty and late fee 724,538.98 604,687.12 724,538.98
Other 4,684,312.46 3,013,937.15 4,684,312.46
Total 8,487,764.98 5,154,068.50 8,487,764.98
62. Income tax expenses
Item Current Year Last Year
Current income tax 15,647,487.73 23,630,449.16
Deferred income Tax -6,082,140.92 -21,207,520.22
Total 9,565,346.81 2,422,928.94
63. Other comprehensive income
Found more in 44. Other comprehensive income in VI
64. Items of cash flow statement
256
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise 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 Year Last Year
Collection of restriction fund 80,505,851.57 93,302,596.49
Government subsidy and rewards 72,305,923.02 100,949,021.63
Cash deposit, deposit 28,044,590.50 31,184,841.18
Receive compensation 21,715,660.93 1,271,453.02
Rental income 6,448,934.35 5,605,416.80
Petty cash collection 131,377.98 711,008.91
Other 9,771,194.92 10,524,796.11
Total 218,923,533.27 243,549,134.14
2) Cash paid for other activities relating to operation
Item Current Year Last Year
Market expenses 181,077,783.11 222,791,063.19
Rental fee 101,343,065.67 120,806,416.80
Petty cash, deposit, Cash deposit 52,116,545.02 60,780,516.64
Travel expenses, meeting fees and exhibition
38,171,566.47 26,209,006.41
fees
Travel expenses, meeting fees and exhibition
30,518,119.56 44,379,229.38
fees
Inspection and certification fee, certification
25,562,940.30 35,467,610.78
charge and reviewing fee
Repair fee 23,408,378.38 22,676,804.70
Business activity fee 19,716,863.80 17,242,092.12
Transportation and vehicle costs 16,317,717.23 17,397,441.98
Service 15,965,228.52 41,594,786.19
Handling fee 9,271,570.17 14,499,999.53
Office expenses 7,864,762.36 8,072,340.01
Advertising fee 6,728,842.18 5,344,491.93
Communication costs 2,861,966.67 3,420,542.01
Labor fee 1,592,513.58 1,856,562.73
Board expenses 1,244,705.27 2,006,972.68
Convert to restricted funds 20,079,453.92
Other expenses 122,093,195.45 143,929,062.93
Total 655,855,763.74 808,554,393.93
3) Cash received from other activities relating to investment
Item Current Period Last Period
Interest income arising from bank savings 161,501,486.59 137,430,181.38
Cash deposit 391,416.52 867,288.00
Income of forward exchange settlement 20,632.41 112,471,926.55
257
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
Other 525,518.72
Total 161,913,535.52 251,294,914.65
4) Cash paid for other activities relating to investment
Item Current Period Last Period
Loses of forward exchange settlement 135,747,164.72 66,334.39
Bid bond refund 2,000.00
Total 135,747,164.72 68,334.39
5) Cash received from other activities relating to financing
Item Current Year Last Year
Meiling series (internal) bill discounting
23,536,567.33 14,136,579.91
fundraising
Total 23,536,567.33 14,136,579.91
6) Cash paid for other activities relating to financing
Item Current Year Last Year
Turn into limited funds 713,173,457.92
Distribusigned to shareholders at the time of
cancellation 22,652,073.83
Meiling series (internal) bill discounting
fundraising 14,747,852.83 216,853.94
Lease liability principal and interest 13,924,674.35 10,862,303.71
Service fees of financing intermediary
agencies 5,205,286.50
Payment for B share repurchase 737,262.35 16,506,673.59
Financing lease 175,323.88 701,295.52
Intermediary service fee 36,327.91 36,415.52
Total 770,652,259.57 28,323,542.28
(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 277,098,462.51 87,092,653.50
Add: provision for depreciation of assets 176,173,704.39 -9,614,635.07
Depreciation of fixed assets, consumption of oil gas
223,767,338.55 221,606,094.74
assets and depreciation of productive biological assets
Amortization of intangible assets 151,246,185.43 147,281,829.24
Depreciation of right-of-use assets 12,973,556.19 8,703,287.66
Loss from disposal of fixed assets, intangible assets
-27,602,023.18 133,214.72
and other long term assets (gain is listed with “-”)
Loss from discarding fixed assets as useless (gain is
1,001,047.96 828,934.22
listed with “-”)
Loss from change of fair value (gain is listed with “-”) -24,137,501.27 3,133,939.42
258
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
Item Current Period Last Period
Financial expense (gain is listed with “-”) -38,087,006.89 -65,010,531.03
Investment loss (gain is listed with “-”) -33,018,838.80 -128,963,968.59
Decrease of deferred income tax assets (increase is
-9,142,184.15 -20,302,373.34
listed with “-”)
Increase of deferred income tax liabilities (decrease is
3,080,311.85 -905,146.88
listed with “-”)
Decrease of inventories (increase is listed with “-”) -347,146,382.60 384,573,713.19
Decrease of operational accounts receivable (increase
343,604,791.45 -56,907,214.37
is listed with “-”)
Increase of operational accounts receivable (decrease is
674,838,435.05 -481,355,049.55
listed with “-”)
Other 80,505,851.57 70,628,510.24
Net cash flow arising from operation activities 1,465,155,748.06 160,923,258.10
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 6,113,222,069.76 5,840,194,931.57
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 273,027,138.19 -585,334,883.53
(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 Balance at year-end Balance at year-begin
Cash 6,113,222,069.76 5,840,194,931.57
Including: cash in stock 21,243.42 28,447.21
Bank deposits available for payment at any time. 6,113,166,932.47 5,121,110,089.59
Other monetary fund available for payment at any time 33,893.87 719,056,394.77
Cash equivalents
Including: bond investment due within 3 months
Balance of cash and cash equivalents at year-end 6,113,222,069.76 5,840,194,931.57
Including: using the restricted cash and cash equivalents of the
parent company or subsidiary of the group
65. Assets with ownership or the right to use restricted
259
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
Item Ending book value Reasons
Monetary fund 718,777,132.92 Cash deposit, Frozen funds
Receivables financingnote1 405,400,483.49 Pledged
Investment real estate note2 3,278,221.44 Mortgage
Fixed assetsnote2 335,613,742.86 Mortgage
Intangible assets note2 272,690,841.98 Mortgage
Total 1,735,760,422.69
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. 35. Long-term loans.
66. Foreign currency
(1) Foreign currency
Item Ending foreign currency Exchange rate Ending RMB converted
balance balance
Monetary fund 159,129,376.13
Including: USD 15,596,095.78 6.9646 108,620,568.67
Euro 900,423.97 7.4229 6,683,757.09
HKD 3,297.90 0.8933 2,946.01
GBP 8.79 8.3941 73.78
PKR 184,531,856.29 0.0307 5,665,127.99
IDR 7,778,858,726.00 0.000445 3,461,592.13
AUD 6,437,891.01 4.7138 30,346,930.64
PHP 10,585,469.75 0.1250 1,323,183.72
Won 547,745,085.00 0.005523 3,025,196.10
Account receivable 867,401,278.08
Including: USD 99,611,587.03 6.9646 693,754,859.03
Euro 2,105,898.55 7.4229 15,631,874.35
GBP 96,148.87 8.3941 807,083.23
PKR 823,550,854.20 0.0307 25,283,011.22
IDR 41,070,294,838.31 0.000445 18,276,281.20
AUD 16,372,654.50 4.7138 77,177,418.78
PHP 17,098,040.24 0.1250 2,137,255.03
260
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
Item Ending foreign currency Exchange rate Ending RMB converted
balance balance
Won 6,216,457,585.00 0.005523 34,333,495.24
Other account receivable 457,072.73
Including: PKR 10,401,391.89 0.0307 319,322.73
IDR 75,000,000.00 0.000445 33,375.00
PHP 835,000.00 0.1250 104,375.00
Account payable 22,076,413.65
Including: USD 10,463.31 6.9646 72,872.77
Euro 13,419.32 7.4229 99,610.27
PKR 509,188,676.80 0.0307 15,632,092.38
IDR 910,164,284.48 0.000445 405,023.11
PHP 46,934,520.96 0.1250 5,866,815.12
Other account payable 15,850,469.79
Including: USD 21,827.00 6.9646 152,016.32
PKR 332,806,189.87 0.0307 10,217,150.03
IDR 11,668,091,101.12 0.000445 5,192,300.54
PHP 2,312,023.20 0.1250 289,002.90
(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.
67. 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 the balance sheet
date. The Company adopts the ratio analysis method to evaluate the hedging effectiveness.
Hedging instrument is as follows:
Carrying value of the hedging Items of balance sheet
Items instrument on December 31, 2022 present include the
hedging instruments
Fair value hedges
261
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
Exchange rate risk - forward foreign
57,660,588.67 Trading financial assets
exchange contracts
Exchange rate risk - forward foreign
41,961,524.78 Trading financial assets
exchange contracts
68.Government subsidy
Amount
reckoned into
Item Amount Item
current
gain/loss
VAT refund on software products 15,709,711.47 Other income 15,709,711.47
Urban subsidy for advanced manufacturing policies in
11,028,800.00 Other income 689,300.00
the first half of 2022
Award funds for supporting the development of China
7,190,000.00 Other income 7,190,000.00
Sound Valley
Enterprise Listing Reward 7,000,000.00 Other income 7,000,000.00
Project settlement and operation policy funds 6,500,000.00 Other income 6,500,000.00
High-quality development policy subsidies 4,989,100.00 Other income 4,989,100.00
Stable job subsidies 4,405,810.76 Other income 4,405,810.76
Export credit insurance subsidy 3,415,565.07 Other income 3,415,565.07
Advanced manufacturing development policy funds 3,300,000.00 Other income 3,300,000.00
Provincial foreign trade funds (market development of
2,500,000.00 Other income 2,500,000.00
key and brand market enterprises)
Reward and subsidize national specialization and new
2,000,000.00 Other income 2,000,000.00
"little giant" enterprises
Manufacturing strong provincial policy subsidy funds 2,000,000.00 Other income 2,000,000.00
2021 district-level high-quality development policy Deferred
1,791,700.00
(second batch) reward funds income
Special funds for industrial development 1,530,000.00 Other income 1,530,000.00
Provincial-level technical transformation project to Deferred
1,385,600.00 284,759.38
promote air-conditioning production line upgrade income
Other sporadic items 1,363,142.63 Other income 1,363,142.63
Product testing fee subsidy 1,000,000.00 Other income 1,000,000.00
Support the joint development of enterprises in the
716,000.00 716,000.00
region Other income
Special funds for port logistics 715,750.00 Other income 715,750.00
Site container subsidy 658,260.00 Other income 658,260.00
High-tech Enterprise Award 600,000.00 Other income 600,000.00
Refund of individual tax handling fee 595,125.97 Other income 595,125.97
Patent Award 573,865.00 Other income 573,865.00
Hefei City stabilizes the economy with a package of
539,232.93 539,232.93
policy subsidies Other income
Vocational training subsidy 514,920.00 Other income 514,920.00
Science and technology innovation subsidy 500,000.00 Other income 500,000.00
New third board innovation layer reward 500,000.00 Other income 500,000.00
Service Trade Fund Project Subsidy 495,750.00 Other income 495,750.00
market development funds 426,001.00 Other income 426,001.00
262
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
Amount
reckoned into
Item Amount Item
current
gain/loss
R & D subsidies 308,200.00 Other income 308,200.00
VAT refund 301,135.59 Other income 301,135.59
Military-civilian integration insurance premium
300,000.00 300,000.00
subsidy Other income
Talent subsidy 292,000.00 Other income 292,000.00
Promotion of foreign investment and cooperation 280,949.43 Other income 280,949.43
E-Commerce Association Project Funding 270,000.00 Other income 270,000.00
Technology Insurance Subsidy 266,350.00 Other income 266,350.00
2022 special fund for business development in
240,388.00 240,388.00
Zhongshan City Other income
Instrument and equipment subsidy 224,400.00 Other income 224,400.00
Provincial Enterprise Technology Center Award 200,000.00 Other income 200,000.00
Product international certification subsidy 200,000.00 Other income 200,000.00
Outstanding Enterprise Award Fund 200,000.00 Other income 200,000.00
Zhongshan Special Fund for Technical Transformation 192,356.76 Other income 192,356.76
Hefei Standardization Policy Rewards 160,000.00 Other income 160,000.00
Standardization project awards 160,000.00 Other income 160,000.00
Intellectual Property Special Fund 109,250.00 Other income 109,250.00
Incentive funds for the top ten taxpayers 100,000.00 Other income 100,000.00
2022 provincial circulation industry funds - market
100,000.00 100,000.00
players and commercial brand cultivation Other income
Policy subsidies for advanced manufacturing in the Deferred
57,100.00 5,947.93
second half of 2021 income
Total 87,906,464.61 74,623,271.92
263
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
VII. Changes of consolidation rage
1. Enterprise combined under the different control: nil
2. Enterprise combined under the same control: nil
3. Reversed takeover: nil
4. Disposal of subsidiary: nil
5. Subsidiary liquidated
Difference between
Amountof
the disposal price
investmentgain/loss
and the share of net
Basisfor transferred from
assets of the
Share Equity Pointo at determining other
subsidiary at the
Subsidiary Equity disposalprice disposalratio disposal which the thepointat comprehensive
consolidate
（%） method controlislost which the incomethatrelated
financial statement
controlislost to equityinvestment
corresponding to
oforiginal
the disposal of the
subsidiary
investment
Liqui Comple
Jinan Xiangyou
datio ted the
Electric
n& February liquidati
Appliances 93.4
cance 2022 on &
Marketing Co.,
llatio cancella
Ltd
n tion
Liqui Comple
datio ted the
Meiling Kadi
n& June liquidati
Washing Machine 56,630,183.58 60.00 cance 2022 on &
Co., Ltd
llatio cancella
n tion
6. Subsidiary newly established: nil
7. Subsidiary merger by absorption
Name of company Equity ratiobeforeabsorption (%) Timeforabsorption
Zhengzhou Meiling Electric Appliances Marketing
Co., Ltd 100 March 2022
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 31 December 2022, the
industrial & commercial and tax cancellation under the name of Zhengzhou Meiling has not been
completed.
VIII. Equity in other entity
264
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
1. Equity in subsidiary
(1) Composition of the enterprise group
Shareholding ratio（%)
Mainoffice Registration Business
Subsidiary Indirectl Acquireby
place place nature Directly
y
Zhongke Meiling Cryogenic Technology Manufacturing Investment
Co., Ltd1)
Hefei Hefei
and sales
47.4512 establishment
Software
Sichuan Hongmei Intelligent Technology Investment
Co., Ltd.2)
Mianyang Mianyang
development
100 establishment
Manufacturing Investment
Mianyang Meiling Refrigeration Co., Ltd.3) Mianyang Mianyang
and sales
95 5 establishment
Jiangxi Meiling Electric Appliance Co., Ltd. Jingdezhen Jingdezhen Manufacturing Investment
4) and sales
98.75 1.25 establishment
Software
Hefei Meiling Wulian Technology Co., Investment
Ltd5）
Hefei Hefei
development
100 establishment
Hefei Meiling Electric Appliances Investment
Marketing Co., Ltd6)
Hefei Hefei Sales 99.82 0.18 establishment
Wuhan Meizhirong Electric Appliances Investment
Marketing Co., Ltd7)
Wuhan Wuhan Sales 92 establishment
Enterprise
Hefei Meiling Nonferrous Metal Products Manufacturing combined not
Co., Ltd.8)
Hefei Hefei
and sales
100 under the same
control
Enterprise
Changhong Meiling Ridian Technology Co., Manufacturing combined under
Ltd.9）
Zhongshan Zhongshan
and sales
99.0361 the same
control
CHANGHONG MEILING Jakapta Jakapta Investment
Sales 100
ELECTRIC INDONESIA,PT 10） establishment
ChanghongRubaTradingCompany Pakistan Pakistan Investment
（Private）Limited 11)
Sales 60 establishment
Enterprise
Sichuan Changhong Air-conditioner Co., Manufacturing combined under
Ltd12)
Mianyang Mianyang
and sales
100 the same
control
Enterprise
Manufacturing combined under
Zhongshan Changhong Electric Co., Ltd13) Zhongshan Zhongshan
and sales
90 10 the same
control
Enterprise
Manufacturing combined not
Hefei Meiling Group Holdings Limited14) Hefei Hefei
and sales
100 under the same
control
Enterprise
Meiling Equator Household Appliance Manufacturing combined not
(Hefei) Co., Ltd.15)
Hefei Hefei
and sales
100 under the same
control
Enterprise
Manufacturing combined not
Hefei Equator Appliance Co., Ltd16) Hefei Hefei
and sales
100 under the same
control
Ground Energy Heat Pump Tech. Co., Manufacturing Investment
Ltd.17)
Mianyang Mianyang
and sales
51 establishment
Ground Energy Heat Pump Tech. Manufacturing Investment
(Zhongshan) Co., Ltd. 18)
Zhongshan Zhongshan
and sales
51 establishment
265
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
Shareholding ratio（%)
Mainoffice Registration Business
Subsidiary Indirectl Acquireby
place place nature Directly
y
Guangzhou Changhong Trading Co., Guangzhou Guangzhou Investment
Ltd.20）
Sales 100 establishment
Guangzhou Changhong Trading Co., Guangzhou Guangzhou 99.03 Investment
Sales
Ltd.20） 61 establishment
Manufacturing Investment
Anhui Tuoxing Technology Co., Ltd.22） Hefei Hefei
and sales
47.45 establishment
CH-Meiling.International Investment
(Philippines) Inc.22）
Philippines Philippines Sales 100 establishment
Hefei Changhong Meiling Life Appliances Investment
Co., Ltd. 24）
Hefei Hefei Sales 70.00 establishment
Anhui Ling'an Medical Equipment Co., Ltd Manufacturing Investment
25）
Lu'an Lu'an
and sales
47.45 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.
266
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
On 28 August 2015, Xinyong Zhonghe CPA reviewed the registered capital and paid-in thereof in respect of the
stock reform, and issued Assets Verification Report (XYZH/2015CDA40161). The Company registered
industrial and commercial information on 11 September 2015.
On November 25, 2016, the first Extraordinary Shareholders' General Meeting of Zhongke Meiling Cryogenic
Technology Co., Ltd. in 2016 considered and approved the Proposal on the Issuance Plan of the Company;
Zhongke Meiling Company issued 3,150,000 shares to specific investors by the non-public offering of shares at
1.63 yuan per share. The current capital increase was verified by the No.［XYZH/2016CDA40294］capital
verification report issued by ShineWing CPA (special general partnership). After the completion of the issuance,
the share capital of Zhongke Meiling Company increased to 68,150,000 shares and the Company's shareholding
ratio was 66.76%.
On 15 September 2017, the Proposal of the First Stock Placement of Zhongke Meiling Cryogenic Technology
Co., Ltd for year of 2017 was deliberated and approved by 4th session extraordinary of shareholders general
meeting of 2017. Zhongke Meiling offering 490,300 shares to specific investors by way of privately placement,
which has 1.72 yuan per share in amount. The capital increasement has been verified by the No.
［XYZH/2017CDA40324］capital verification report issued by ShineWing CPA (special general partnership).
After the completion of shares placement, stock of the Company increased to 68,640,300 shares and 66.87%
held by the Company.
On September 9, 2019, the 10th Meeting of the 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%.
On September 16, 2022, the Management Committee of China Securities Regulatory Commission issued
the Reply on Approving the Registration of Zhongke Meiling Cryogenics Co.,Ltd. to Public Offering of Shares
to Unspecified Qualified Investors (ZJXK [2022] No. 2182), which approved the registration application of
Zhongke Meiling to Public Offering of Shares to Unspecified Qualified Investors. The price of this issue is RMB
16.00/share, the initial number of shares issued is 24,182,734, and the actual net fund raised is RMB
364,573,394.95. By September 30, 2022, all the above-mentioned raised funds had been received and verified
by the Capital Verification Report [XYZH/No. 2022CDAA70693] issued by ShineWing Certified Public
Accountants (special general partnership). After the issuance, the share capital of Zhongke Meiling is 96,730,934
shares, and the shareholding ratio of the Company is 47.45%.
2) Sichuan Hongmei Intelligent Technology Co., Ltd. (hereinafter referred to as Hongmei Intelligent) was
267
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
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 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.
268
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
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
269
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
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 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
270
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
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 (“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%.
In 2017, the shareholder meeting of Zhongshan Changhong Electric Co., Ltd. passed the "Proposal
on the Company's Increased Investment in Pakistan Refrigerator Project", agreeing that Zhongsha
n Changhong and the UAE RUBA company will jointly increase the capital of ChanghongRuba. , the s
hares held by both parties remain unchanged. After the capital increase, the registered capital of Chang
hongRuba is US$13,004,923, of which Zhongshan Changhong contributed US$7,802,954 in cash, holdi
ng 60% of the shares, and RUBA of the United Arab Emirates contributed US$5,201,969 in cash, holdi
ng 40% of the shares.
271
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
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 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
272
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
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.
273
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
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 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)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
20) 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.
21) 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. On May 21, 2020 and February 21, 2021, Zhongke Meiling
invested RMB 5 million, with a total investment of RMB 10 million, accounting for 100% of its registered
capital.
22) CH-Meiling.International (Philippines) Inc. was established on 13 February 2020 in Philippines
with registered capital of US$ 1,000,000, takes 100% of the equity. As of December 31,2022, the
Company has invested US$ 1,000,000,
23) 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%
274
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
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.
24) 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. In 2022, the Board of Directors of Zhongke Meiling decided
to increase the registered capital by RMB 40 million. On December 30, 2022, the paid-in capital was
completed, and the registered capital of Ling'an Medical increased to RMB 50 million.
(2) Major non-wholly-owned subsidiary
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 52.5488% 17,538,180.20 21,318,560.00 315,898,795.88
Ground Energy 49.00% 3,415,248.84 24,549,355.52
Ridian Technology 0.9639% 6,008.86 1,326,570.78
Meiling Life
30.00% 12,172,873.75 4,099,298.64 32,183,127.65
Appliances
(3) Financial information for major non-wholly-owned subsidiary
Ending balance
Subsidiary Non-current
Currentassets Non-currentassets Totalassets Currentliability Totalliabilities
liability
Zhongke Meiling 649,452,399.30 157,673,698.36 807,126,097.66 190,256,989.79 15,715,771.32 205,972,761.11
Ground Energy 190,767,892.48 18,222,456.16 208,990,348.64 158,674,964.71 214,658.38 158,889,623.09
Ridian
Technology
231,271,013.10 42,012,672.36 273,283,685.46 135,113,073.14 538,894.36 135,651,967.50
Meiling Life
Appliances
559,068,082.42 224,882.24 559,292,964.66 452,015,872.49 452,015,872.49
(Continued)
Opening balance
Subsidiary Non-current
Currentassets Non-currentassets Totalassets Currentliability Totalliabilities
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
275
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
Opening balance
Subsidiary Non-current
Currentassets Non-currentassets Totalassets Currentliability Totalliabilities
liability
Meiling Life
Appliances
421,039,031.17 169,482.39 421,208,513.56 340,843,338.42 340,843,338.42
(Continued)
Current Period
Subsidiary Operation Total comprehensive Cash flow from
Net profit
income income operation activity
Zhongke Meiling 406,489,091.83 46,273,692.68 46,273,692.68 -38,010,376.20
Ground Energy 316,282,181.46 6,969,895.59 6,969,895.59 20,156,454.01
Ridian Technology 237,989,059.17 623,419.57 623,419.57 -13,918,903.50
Meiling Life
Appliances
1,419,586,443.18 40,576,245.84 40,576,245.84 67,906,512.81
(Continued)
Last Period
Subsidiary Operation Total comprehensive Cash flow from
Net profit
income income operation activity
Zhongke Meiling 464,899,620.09 65,085,510.92 65,085,510.92 70,137,269.97
Ground Energy 347,880,649.74 8,044,490.53 8,044,490.53 60,316,055.84
Ridian Technology 309,467,627.62 2,351,153.78 2,351,153.78 -243,853,078.73
Meiling Life
Appliances
1,136,846,527.85 30,365,175.14 30,365,175.14 262,095,425.65
(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
Items Zhongke Meiling Total
Original ratio of shares held 63.2683% 63.2683%
Equity purchased from minority
Original ratio of shares held 24,182,734.00 24,182,734.00
Equity purchased from minority 47.4512% 47.4512%
Cost of purchasing minority equity
Less: Ratio of the net assets measured by equity ratio while
281,328,431.66 281,328,431.66
acquiring the subsidiary
Equity dilution for shares issuance
Balance 136,158,171.77 136,158,171.77
Including: Capital public reserve adjusted 136,158,171.77 136,158,171.77
276
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
In 2022, Zhongke Meiling, a subsidiary, publicly issued 24,182,734 shares to unspecified qualified
investors (at an issue price of RMB 16 per share), and after deducting the issuance expenses, the capital
reserve of Zhongke Meiling increased by RMB 340,390,660.95. According to the shareholding ratio
before and after the capital increase, the Company shall be entitled to the difference of net assets share of
Zhongke Meiling of RMB 136,158,171.77, which is included in the capital reserve.
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.ChanghongRubaElectricCompany(Pri Lahore, Manufacture
Lahore 40.00 Equity
vate)Ltd. Pakistan s, 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 Manufacture
Mianyang Mianyang 25.00 Equity
Co., Ltd. s, 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
Balance at year-end/Current Year
Hong
Hefei Sichuan Sichuan Chengdu
ChanghongRu Yuan
Item Xingmei Zhiyijia Tianyou Guigu
baElectricCo Ground
Assets Network Guigu Environment
mpany(Privat Energy
Managemen Technology Technology al Tech. Co.,
e)Ltd. Heat Tech.
t Co., Ltd. Co., Ltd. Co., Ltd. Ltd
Co., Ltd.
Current assets 81,268,806.16 45,818,917.65 3,283,851,057.02 38,746,877.56 14,399,461.73 41,590,971.33
Including: cash and
4,921,365.69 45,763,227.65 14,808,208.88 29.18 5,469,142.38 23,853,311.23
cash equivalent
Non-current assets 30,867,707.49 5,635,867.44 819,281.43 12,352.49 1,244,940.57
Total assets 112,136,513.65 45,818,917.65 3,289,486,924.46 39,566,158.99 14,411,814.22 42,835,911.90
Current liability 154,683,192.50 4,602,727.84 3,185,798,119.47 4,708,039.64 1,891,931.14 10,624,102.18
Non-current
1,632,200.33 2,731,542.18
liability
Total liabilities 154,683,192.50 4,602,727.84 3,187,430,319.80 4,708,039.64 1,891,931.14 13,355,644.36
Minority's interest 1,096,374.40
277
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
Balance at year-end/Current Year
Hong
Hefei Sichuan Sichuan Chengdu
ChanghongRu Yuan
Item Xingmei Zhiyijia Tianyou Guigu
baElectricCo Ground
Assets Network Guigu Environment
mpany(Privat Energy
Managemen Technology Technology al Tech. Co.,
e)Ltd. Heat Tech.
t Co., Ltd. Co., Ltd. Co., Ltd. Ltd
Co., Ltd.
Equity attributable
to shareholder of -42,546,678.85 41,216,189.81 102,056,604.66 34,858,119.35 12,519,883.08 28,383,893.14
parent company
Share of net assets
measured by -17,018,671.54 19,899,176.44 51,028,302.33 17,080,478.48 3,129,970.77 7,095,973.29
shareholding
Adjustment
--Goodwill 821,877.28 1,416,227.93
Unrealized profit of
the internal
61,436.67 19,388.90 6,752.44
downstream
transactions
Unrealized profit of
the internal
upstream
transactions
Other 17,018,671.54
Book value of the
equity investment
19,899,176.44 51,850,179.61 17,019,041.81 3,110,581.87 8,505,448.77
for associate
enterprise
Fair value of equity
investment for the
affiliates with
consideration
publicly
Operation income 130,028,432.81 11,137,539,778.84 7,455,389.79 8,533,693.50 28,881,455.21
Financial expenses 102,800.34 -61,942.19 (50,856,868.09) 1,598.44 -107,415.28 -490,708.14
Income tax
1,110,901.10 3,561,226.32 (135,812.07)
expenses
Net profit -31,642,829.80 10,683,678.96 12,126,330.11 -7,408,715.92 606,118.86 -2,419,303.39
Other
Other
comprehensive 4,165,076.91
income
Total
comprehensive -27,477,752.89 10,683,678.96 12,126,330.11 -7,408,715.92 606,118.86
income
Dividend received
from associate
5,069,400.00
enterprise in
Current Year
(Continued)
278
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
Balance at year-begin /Last Year
Hefei Sichuan Hong Yuan Sichuan Chengdu
ChanghongR
Items Xingmei Zhiyijia Ground Tianyou Guigu
ubaElectricC
Assets Network Energy Guigu Environment
ompany(Priv
Manageme Technology Heat Tech. Technology al Tech. Co.,
ate)Ltd.
nt Co., Ltd. Co., Ltd. Co., Ltd. Co., Ltd. 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
Operation income 212,975,934.56 11,191,030,556.90 24,577,536.47 7,983,502.89 38,128,313.52
Financial expenses 2,974,146.42 443,380.59 -51,236,312.07 2,374.70 -105,819.09 -374,408.78
Income tax
2,735,333.56 4,852,902.82 784,678.81
expenses
Net profit -6,640,369.42 26,945,094.97 4,472,169.87 -2,953,746.66 495,803.24 12,183,906.56
Other -648,154.63
Other
comprehensive 6,538,313.32
income
capital reserve -130,171.30
279
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
Balance at year-begin /Last Year
Hefei Sichuan Hong Yuan Sichuan Chengdu
ChanghongR
Items Xingmei Zhiyijia Ground Tianyou Guigu
ubaElectricC
Assets Network Energy Guigu Environment
ompany(Priv
Manageme Technology Heat Tech. Technology al Tech. Co.,
ate)Ltd.
nt Co., Ltd. Co., Ltd. Co., Ltd. Co., Ltd. Ltd
Total
comprehensive -102,056.10 26,945,094.97 3,693,843.94 -2,953,746.66 495,803.24 12,183,906.56
income
Dividend received
from associate
1,025,445.14
enterprise in
Current Year
(4) Financial summary for non-important Joint venture and associate enterprise
Balance at year-
Item Balance at year-begin /Last Year
end/Current Year
Associated companies：
Total book value of investment
Total amount measured by shareholding
ratio
--Net profit -444,973.83 -904,106.72
--Other comprehensiveincome
-- Total comprehensiveincome -444,973.83 -904,106.72
(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 ChanghongRubaElectricCompany(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
5. Structured body excluding in consolidate financial statement: Nil
IX. Relevan t r isks re lated with financia l in strument
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.
1. Various risk management objectives and policies
The Company's goal in risk management is to strike a proper balance between risks and benefits, reduce the
negative impact of risks on the Company's operating performance to the lowest level, and maximize the
280
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
interests of shareholders and other equity investors. Based on this risk management goal, the basic strategy of
the Company's risk management is to identify and analyze all kinds of risks faced by the Company, establish
an appropriate risk tolerance bottom line and conduct risk management, and timely and reliably supervise all
kinds of risks to control the risks within a limited range.
(1) Market risk
1) Exchange rate risk
The Company pays close attention to the impact of exchange rate changes on the Company. The Company
attaches great importance to the study of exchange rate risk management policies and strategies. In order to
avoid the exchange rate risk of foreign currency payment and foreign currency collection and settlement
income, the Company has signed several forward foreign exchange contracts with banks. The fair value of
forward foreign exchange contracts recognized as derivative financial instruments on December 31, 2022 is
RMB 15,699,063.89. Changes in the fair value of derivative financial instruments have been included in the
profit and loss, and the relevant contents of "VI. 56 Income from changes in fair value" in this note. In the
meantime, with the constant change in the share of the international market, if there are risks beyond the control
of the Company, such as unilateral large changes in the RMB exchange rate, the Company will reduce the risks
by adjusting the sales or purchasing strategies.
2) Interest rate risk
The Company's interest rate risk arises from bank loans and interest-bearing debts. Financial liabilities with
floating interest rate expose the Company to cash flow interest rate risk, while financial liabilities with fixed
interest rate expose the Company to fair value interest rate risk. The Company decides the relative proportion
of fixed interest rate and floating interest rate contracts according to the market environment at that time. On
December 31, 2022, the Company's interest-bearing debts were mainly the fixed-rate loan contracts
denominated in RMB, with a total amount of RMB 674,000,000.00; and the RMB floating-rate loan contracts,
with a total amount of RMB 168,000,000.00. The Company's risk of changes in the fair value of financial
instruments due to changes in interest rates is mainly related to fixed-rate bank loans. The Company's risk of
cash flow changes of financial instruments caused by interest rate changes is mainly related to floating interest
rate bank loans. The Company pays close attention to the impact of this part of interest rate changes on the
Company and attaches importance to the study of interest rate risk management policies and strategies.
(2) Credit risk
On December 31, 2022, the biggest credit risk exposure that may cause the financial loss of the Company
mainly comes from the loss of the Company's financial assets caused by the failure of the other party to the
contract and the financial guarantee undertaken by the Company, including: the book amount of the financial
281
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
assets recognized in the consolidated balance sheet; For financial instruments measured at fair value, the book
value reflects their risk exposure, but not the maximum risk exposure, and its maximum risk exposure will
change with the change of fair value in the future. In order to reduce the credit risk, the Company set up a
special department to determine the credit line, conduct credit approval, and implement other monitoring
procedures to ensure that necessary measures are taken to recover overdue creditor's rights. Meanwhile, the
Company tries to reduce the impact of credit default of creditor's rights by purchasing credit insurance. In
addition, the Company reviews the recovery of each single receivable on each balance sheet date to ensure that
sufficient bad debt provision is made for unrecoverable funds. Therefore, the management of the Company
believes that the credit risk assumed by the Company has been greatly reduced. The Company's working capital
is deposited in the finance company, so the credit risk of working capital is low. The Company has adopted
necessary policies to ensure that all sales customers have good credit records. The total amount of the top five
accounts receivable is RMB 800,614,365.63, accounting for 51.14% of the accounts receivable at the end of
the year, which is dependent on major customers. Except for the top five accounts receivable, the Company
has no other major credit risks.
(3) Liquidity risk
Liquidity risk is the risk that the Company cannot fulfill its financial obligations on the due date. The
Company's method of managing liquidity risk is to ensure that there is enough financial liquidity to fulfill the
due debts through capital plan management, without causing unacceptable losses or damaging the reputation
of the company. According to the requirements of the capital plan cycle, the Company makes a capital plan in
advance to ensure that there is sufficient capital when the debt is due. The management of the Company
monitors the use of bank loans and ensures compliance with the loan agreement. In the meantime, it conducts
financing negotiations with financial institutions to maintain a certain credit line and reduce liquidity risk.
X. Fair va lue d isc losu re
1. Asset and liability measured by fair value at end of Current Period and fair value measurement level
Fair value at period-end
Items
1st level 2nd level 3rd level Total
I. Continuous fair value
— — — —
measurement
(i) Trading financial assets 57,660,588.67 57,660,588.67
1.Financial assets measured at fair
value and whose changes are 57,660,588.67 57,660,588.67
included in current gains/losses
Including: Derivative financial
57,660,588.67 57,660,588.67
assets
(ii) Other non-current financial
81,060,223.94 547,489,224.37 628,549,448.31
assets
(iii) Receivables financing 1,446,358,719.88 1,446,358,719.88
Total assets continuously
57,660,588.67 81,060,223.94 1,993,847,944.25 2,132,568,756.86
measured at fair value
282
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
Fair value at period-end
Items
1st level 2nd level 3rd level Total
(iv) Trading financial liability 41,961,524.78 41,961,524.78
1. Financial liabilities measured by
fair value and with variation 41,961,524.78 41,961,524.78
reckoned into current gains/losses
Including: Derivative financial
41,961,524.78 41,961,524.78
liability
Total liabilities continuously
41,961,524.78 41,961,524.78
measured at fair value
2. The basis for determining the market price of continuous and non-continuous first-level fair value
measurement items
The company's fair value measurement items are futures contracts and foreign exchange options. The
market price of futures contracts is determined based on the closing price of the futures contract at the
end of the period; the market price of foreign exchange options is determined based on the quotation of
contract products of the foreign exchange options at the end of the period.
3. Qualitative and quantitative information on the valuation techniques used and important parameters for
continuous and non-continuous second-level fair value measurement items
The fair value measurement items are long-term investments in the fund company. For long-term
investments in fund companies, the assessed book value can represent the best estimate of fair value
within the scope.
4. Qualitative and quantitative information on the valuation techniques used and important parameters for
continuous and non-continuous third-level fair value measurement items
The 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 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 partie s an d rela ted transa ction
(I) Relationship of related parties
1. Controlling shareholder and ultimate controller
(1) Controlling shareholder and ultimate controller
283
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
Share-
Voting
Registr holding
Controlling shareholder and Business rights ratio
ation Registered capital ratio in
ultimate controller nature in the
place the
Company
Company
Sichuan Changhong Electric Co., Mianya Manufacture
Ltd. ng and sales
4,616,244,222.00 27.36% 27.36%
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
Increase Decrease
Controlling shareholder Opening balance Ending balance
this period this period
4,616,244,222.0
Sichuan Changhong Electric Co., Ltd. 4,616,244,222.00
0
(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.,
Ltd.
281,832,434.00 281,832,434.00 27.36% 26.98%
2. Subsidiary
Found more in Note “VIII. 1 (1) Enterprise group composition”
3. Joint venture and associated enterprise
Major Joint venture and associated enterprise of the Company found more in Note “VIII. 3 (1) major joint
venture and associated enterprise”. Other Joint venture and associated enterprise that have related
transactions occurred with the Company in Current Period or occurred in last period, and with balance
results:
Joint venture and associated enterprise Relationship with the company
Hefei Xinmeitai Energy Tech. Co., Ltd. Associated enterprise of subsidiary Meiling Group
Associated enterprise of subsidiary Zhongshan
ChanghongRubaElectricCompany(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
284
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
Joint venture and associated enterprise Relationship with the company
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
Sichuan Changhong International Travel Service Co., Ltd
ultimate controller
Control by same controlling shareholder and
Hunan Grand-Pro Intelligent Tech. Company
ultimate controller
Control by same controlling shareholder and
CHANGHONG.ELECTRIC.(AUSTRALIA) PTY.LTD.
ultimate controller
Control by same controlling shareholder and
CHANGHONG ELECTRIC MIDDLE EAST FZCO
ultimate controller
Control by same controlling shareholder and
Sichuan Changhong Electronic Products Co., Ltd.
ultimate controller
Control by same controlling shareholder and
Hefei Changhong New Energy Technology Co., Ltd.
ultimate controller
Control by same controlling shareholder and
Sichuan Changhong Moulding Tech. Co., Ltd.
ultimate controller
Control by same controlling shareholder and
Changhong Europe Electric s.r.o
ultimate controller
Control by same controlling shareholder and
Changhong Huayi Compressor Co., Ltd.
ultimate controller
Control by same controlling shareholder and
Sichuan Changhong Jijia Fine Co., Ltd.
ultimate controller
Control by same controlling shareholder and
Sichuan Changhong Minsheng Logistics Co., Ltd.
ultimate controller
Control by same controlling shareholder and
Sichuan Kuaiyidian Electric Appliance Service Chain Co., Ltd
ultimate controller
Control by same controlling shareholder and
Sichuan Changhong Precision Electronics Tech. Co., Ltd.
ultimate controller
Control by same controlling shareholder and
PT.CHANGHONG ELECTRIC INDONESIA
ultimate controller
Control by same controlling shareholder and
CHANGHONG (HK) TRADING LIMITED
ultimate controller
Control by same controlling shareholder and
Sichuan Changhong Device Technology Co., Ltd.
ultimate controller
Control by same controlling shareholder and
Chengdu Changhong Electronic Technology Co., Ltd.
ultimate controller
Control by same controlling shareholder and
Lejiayi Chain Management Co., Ltd.
ultimate controller
Control by same controlling shareholder and
Sichuan Hongwei Technology Co., Ltd.
ultimate controller
Control by same controlling shareholder and
Sichuan Changhong Real Estate Co., Ltd.
ultimate controller
Control by same controlling shareholder and
Sichuan Changhong New Energy Technology Co., Ltd.
ultimate controller
Control by same controlling shareholder and
Hefei Changhong Industrial Co., Ltd.
ultimate controller
Control by same controlling shareholder and
Changhong International Holdings (Hong Kong) Co., Ltd.
ultimate controller
Control by same controlling shareholder and
Guangdong Changhong Electronics Co., Ltd.
ultimate controller
Control by same controlling shareholder and
Sichuan Changhong Package Printing Co., Ltd.
ultimate controller
Control by same controlling shareholder and
Sichuan Changhong Jineng Sunshine Technology Co., Ltd.
ultimate controller
285
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
Other related party Relationship with the company
Control by same controlling shareholder and
Sichuan Changhong Power Source Co., Ltd.
ultimate controller
Control by same controlling shareholder and
Sichuan Hongxin Software Co., Ltd.
ultimate controller
Control by same controlling shareholder and
Sichuan Changhong Network Technology Co., Ltd.
ultimate controller
Control by same controlling shareholder and
Guangyuan Changhong Electronic Technology Co., Ltd.
ultimate controller
Control by same controlling shareholder and
Yuanxin Financial Lease Co., Ltd.
ultimate controller
Control by same controlling shareholder and
Orion.PDP.Co.,ltd
ultimate controller
Control by same controlling shareholder and
081 Electronic Group Co., Ltd.
ultimate controller
Control by same controlling shareholder and
Sichuan Changhong International Hotel Co., Ltd.
ultimate controller
Control by same controlling shareholder and
Sichuan Aichuang Science & Technology Co., Ltd.
ultimate controller
Control by same controlling shareholder and
Sichuan Ailink Technology Co., Ltd.
ultimate controller
Sichuan Changhong Intelligent Manufacturing Technology Co., Control by same controlling shareholder and
Ltd. ultimate controller
Control by same controlling shareholder and
Sichuan Changhong Property Service Co., Ltd.
ultimate controller
Control by same controlling shareholder and
Sichuan Huanyu Industrial Co., Ltd.
ultimate controller
Control by same controlling shareholder and
Sichuan Jiahong Industrial Co., Ltd.
ultimate controller
Sichuan Changhong Gerun Environmental Protection Tech. Co., Control by same controlling shareholder and
Ltd. ultimate controller
Control by same controlling shareholder and
Sichuan Huafeng Enterprise Group Co., Ltd.
ultimate controller
Control by same controlling shareholder and
Sichuan Changhong Group Finance Co., Ltd.
ultimate controller
Control by same controlling shareholder and
Mianyang Huafeng Hulian Technology Co., Ltd.
ultimate controller
Control by same controlling shareholder and
Sichuan Changhong Jiahua Information Co., Ltd.
ultimate controller
Control by same controlling shareholder and
Sichuan Qisai Microelectronic Co., Ltd.
ultimate controller
Control by same controlling shareholder and
Yibin Hongxing Electric Co., Ltd.
ultimate controller
Control by same controlling shareholder and
Mianyang Hongshang Real Estate Co., Ltd.
ultimate controller
Mianyang Science & Technology City Big Data Technology Co., Control by same controlling shareholder and
Ltd. ultimate controller
Beijing Changhong Technology Co., Ltd. Associated enterprise of controlling shareholder
Associated enterprise of other enterprise that have
Sichuan Hongyu Metal Manufacturing Co., Ltd.
the same controlling shareholder
Associated enterprise of other enterprise that have
Sichuan Baiku Technology Co., Ltd
the same 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
Control by same controlling shareholder and
Sichuan Hongmofang Network Technology Co., Ltd.
ultimate controller
Control by same controlling shareholder and
Sichuan Qiruik Technology Co., Ltd.
ultimate controller
286
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
Other related party Relationship with the company
Control by same controlling shareholder and
Changhong Grand-Pro Technology Co., Ltd.
ultimate controller
Control by same controlling shareholder and
Sichuan Changhong Jihuang Lithium Technology Co., LTD
ultimate controller
Control by same controlling shareholder and
Sichuan Ansifei Technology Co., Ltd.
ultimate controller
Control by same controlling shareholder and
Sichuan Changhong Electric Technology Co., Ltd.
ultimate controller
Control by same controlling shareholder and
Sichuan Hongcheng Construction Co., lTD.
ultimate controller
Control by same controlling shareholder and
Guangyuan Hongcheng Industrial Co., Ltd.
ultimate controller
Control by same controlling shareholder and
Sichuan Aiku Technology Co., Ltd.
ultimate controller
(ii) Related transactions
1. Purchasing commodity
Whether
Approved the
Related party Content Current Year trading trading Last Year
quota limit is
exceeded
(In 10 (In 10
thousand thousand
yuan) yuan)
Sichuan Changhong Molding Purchasing
80,947.69 100,000.00 N 72,217.32
Technology Co., Ltd commodity
Sichuan Changxin Refrigeration Purchasing
53,050.78 39,411.46
Parts Co., Ltd. commodity
Sichuan Changhong Jijia Fine Co., Purchasing
45,767.42 52,000.00 N 36,519.86
Ltd. commodity
Changhong Huayi Compressor Co., Purchasing
45,173.47 48,000.00 N 41,883.15
Ltd. commodity
Sichuan Changhong Electric Co., Purchasing
33,985.13 65,000.00 N 52,569.68
Ltd. commodity
Sichuan Changhong Package Purchasing
13,066.04 18,000.00 N 10,505.94
Printing Co., Ltd. commodity
Sichuan Aichuang Science & Purchasing
11,551.33 13,000.00 N 10,843.83
Technology Co., Ltd. commodity
Purchasing
Mianyang Highly Electric Co., Ltd. 10,109.13 21,625.23
commodity
ChanghongRuba Electric Company Purchasing
6,640.82 7,078.47
(Private) Ltd. commodity
Sichuan Changhong Precision Purchasing
2,570.75 3,000.00 N 1,689.38
Electronics Tech. Co., Ltd. commodity
Sichuan Changhong Electronic Purchasing
2,546.79 3,000.00 N 2,376.25
Products Co., Ltd. commodity
Purchasing
Sichuan Ailink Technology Co., Ltd. 913.94 5,000.00 N 2,519.71
commodity
Sichuan Changhong Device Purchasing
768.89 10,000.00 N -
Technology Co., Ltd commodity
Purchasing
Sichuan Aoku Technology Co., Ltd. 764.15 5,000.00 N -
commodity
Sichuan Zhiyijia Network Purchasing
530.29 10,000.00 N 1,218.16
Technology Co., Ltd. commodity
287
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
Whether
Approved the
Related party Content Current Year trading trading Last Year
quota limit is
exceeded
Changhong International Holdings Purchasing
510.85 8,000.00 N 1,017.63
(Hong Kong) Co., Ltd. commodity
Guangdong Changhong Electronics Purchasing
417.80 10,000.00 N 579.57
Co., Ltd. commodity
Purchasing
Hefei Changhong Industrial Co., Ltd. 394.74 10,000.00 N 942.42
commodity
Chengdu Guigu Environmental Tech. Purchasing
22.19 0.18
Co., Ltd commodity
Purchasing
Sichuan Jiahong Industrial Co., Ltd. 8.25 5,000.00 N 0.60
commodity
Sichuan Changhong New Energy Purchasing
4.31 5,000.00 N 2.70
Technology Co., Ltd. commodity
Sichuan Changhong Intelligent Purchasing
1.62 5,000.00 N 2.86
Manufacturing Technology Co., Ltd. commodity
Sichuan Changhong International Purchasing
1.17 5,000.00 N 2.00
Hotel Co., Ltd. commodity
Sichuan Service Exp. Appliance Purchasing
0.12 10,000.00 N 5.00
Service Chain Co., Ltd. commodity
Hunan Grand-Pro Intelligent Tech. Purchasing
152.35
Company commodity
Sichuan Hongran Green Energy Co., Purchasing
87.93
Ltd. commodity
Hefei Changhong New Energy Purchasing
34.49
Technology Co., Ltd. commodity
Purchasing
081 Electronic Group Co., Ltd. 4.95
commodity
Sichuan Changhong Property Purchasing
3.03
Service Co., Ltd. commodity
Sichuan Hongwei Technology Co., Purchasing
0.32
Ltd. commodity
Total 309,747.67 303,294.47
2. Accept the services
Whether
Approved the trading
Related party Content Current Year Last Year
trading quota limit is
exceeded
Sichuan Changhong Accept
Minsheng Logistics Co., the 616,571,560.92 750,000,000.00 N 585,263,836.50
Ltd. services
Sichuan Service Exp. Accept
Appliance Service the 300,207,670.49 320,000,000.00 N 250,718,083.94
Chain Co., Ltd. services
Sichuan Changhong Accept
Moulding Tech. Co., the 21,996,492.76 60,000,000.00 N 127,233.28
Ltd. services
Accept
Sichuan Hongxin
the 10,867,739.17 60,000,000.00 N 10,856,658.91
Software Co., Ltd.
services
Sichuan Changhong Accept
Technology Seiko Co., the 10,671,879.96 60,000,000.00 N 11,830.19
Ltd services
Sichuan Changhong
Accept
Intelligent
the 8,889,532.68 395,895.95
Manufacturing
services
Technology Co., Ltd.
288
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
Whether
Approved the trading
Related party Content Current Year Last Year
trading quota limit is
exceeded
Sichuan Qiruik Accept
Technology Co., Ltd. the 8,525,543.51 50,000,000.00 N 5,980,909.80
services
Accept
Sichuan Jiahong
the 7,421,624.51 50,000,000.00 N 3,895,237.37
Industrial Co., Ltd.
services
Accept
Sichuan Changhong
the 4,882,453.51 60,000,000.00 N 5,745,731.73
Electric Co., Ltd.
services
Sichuan Changhong Accept
Electronics Holding the 1,954,498.90 50,000,000.00 N 1,681,313.86
Group Co., Ltd. services
Accept
Guangdong Changhong
the 1,223,519.69 60,000,000.00 N 1,128,280.15
Electronics Co., Ltd.
services
Sichuan Aichuang Accept
Technology Co., Ltd. the 1,069,829.75 50,000,000.00 N 131,378.07
services
Sichuan Changhong Accept
International Hotel Co., the 351,928.96 50,000,000.00 N 217,834.37
Ltd. services
Sichuan Zhiyijia Accept
Network Technology the 155,202.18 60,000,000.00 N -465,679.53
Co., Ltd. services
Chengdu Guigu Accept
Environmental Tech. the 124,778.76
Co., Ltd services
Sichuan Changhong Accept
Property Service Co., the 114,522.42 50,000,000.00 N 707,185.86
Ltd. services
Sichuan Changhong Accept
Device Technology Co., the 81,652.50 60,000,000.00 N
Ltd services
Sichuan Changhong
Accept
Intelligent
the 73,130.53 50,000,000.00 N 748,609.37
Manufacturing
services
Technology Co., Ltd.
Chengdu Guigu Accept
Environmental Tech. the 59,745.71 50,000,000.00 N 56,580.19
Co., Ltd services
Sichuan Changhong Accept
Network Technology the 24,891.99 60,000,000.00 N
Co., Ltd. services
Changhong Accept
International Holdings the 5,988,668.60
(Hong Kong) Co., Ltd. services
Sichuan Hongwei Accept
Technology Co., Ltd. the 1,521,897.41
services
Guangyuan Changhong Accept
Electric Technology the 1,023,131.47
Co., Ltd. services
Sichuan Changhong Accept
Electric Produst Co., the 126,956.03
Ltd. services
Orion.PDP.Co.,ltd Accept
the 125,271.39
services
289
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
Whether
Approved the trading
Related party Content Current Year Last Year
trading quota limit is
exceeded
Sichuan Changhong Accept
International Travel the 26,557.92
Service Co., Ltd. services
Total 995,268,198.90 876,013,402.83
3. Sales of goods
Current
Related party Content Last Period
Period
(in 10 (in 10
thousand thousand
Yuan) Yuan)
Sales of
CHANGHONG(HK)TRADINGLIMITED 35,986.86 29,876.00
goods
Sales of
CHANGHONGELECTRIC(AUSTRALIA)PTY.LTD. 16,831.82 12,752.56
goods
Sales of
Changhong International Holdings (Hong Kong) Co., Ltd. 10,146.95 16,437.09
goods
Sales of
Orion.PDP.Co.,ltd 5,156.73 3,967.89
goods
Sales of
CHANGHONG ELECTRIC MIDDLE EAST FZCO 1,725.97 349.94
goods
Sales of
Changhong Europe Electric s.r.o 1,376.83 7,082.16
goods
Sales of
ChanghongRuba Electric Company (Private) Ltd. 1,032.08 3,262.43
goods
Sales of
Sichuan Service Exp. Appliance Service Chain Co., Ltd. 704.59 655.49
goods
Sales of
Hong Yuan Ground Energy Heat Tech. Co., Ltd. 571.43 2,426.82
goods
Sales of
Sichuan Changhong Minsheng Logistics Co., Ltd. 254.19 32.82
goods
Sales of
Yuanxin Financial Lease Co., Ltd. 245.87
goods
Sales of
Sichuan Tianyou Guigu Technology Co., Ltd. 206.70 114.92
goods
Sales of
Sichuan Changhong Electronic Co., Ltd. 138.77 426.60
goods
Sales of
Leyijia Chain Management Co., Ltd. 125.36 53.10
goods
Sales of
Sichuan Changhong Model Technology Co., Ltd. 68.44 20,509.82
goods
Sales of
Sichuan Baiku Technology Co., Ltd. 64.39
goods
Sichuan Changhong Gerun Environmental Protection Tech. Co., Sales of
53.43 175.73
Ltd. goods
Sales of
Sichuan Changhong Electric Holding Group Co., Ltd. 42.38 18.06
goods
Sales of
Sichuan Huafeng Technology Co., Ltd. 35.31
goods
Sales of
Sichuan Aiku Technology Co., Ltd. 23.01
goods
Sales of
Guangyuan Electric Technology Co., Ltd. 15.00 15.43
goods
290
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
Current
Related party Content Last Period
Period
Sales of
Guangdong Changhong Electric Co., Ltd. 10.59 33.63
goods
Sales of
Sichuan Changhong Appliance Technology Co., Ltd. 10.46 71.11
goods
Sales of
Sichuan Changhong Real Estate Co., Ltd. 9.72 6.63
goods
Sales of
Changhong Huayi Compressor Co., Ltd. 7.26 3.76
goods
Sales of
ichuan Changhong Technology Seiko Co., Ltd 6.20 4,883.00
goods
Sales of
Mianyang Hongshang Real Estate Co., Ltd. 2.56
goods
Sales of
Sichuan Ansifei Technology Co., Ltd. 2.42 12.51
goods
Sales of
Sichuan Aichuang Technology Co., Ltd. 2.19 23.03
goods
Sales of
Sichuan Qiruk Technology Co., Ltd. 0.31
goods
Sales of
Sichuan Hongxin Software Co., Ltd. 0.11 12.11
goods
Sales of
Sichuan Changxin Refrigeration Parts Co., Ltd 9,921.49
goods
Sales of
Sichuan Changhong Jihuang Lithium Technology Co., Ltd 126.35
goods
Sales of
Changhong Gelanbo Technology Co., Ltd. 123.88
goods
Sales of
PT.CHANGHONGELECTRICINDONESIA 27.80
goods
Sales of
Sichuan Changhong Source Co., Ltd. 16.99
goods
Sales of
Hefei Changhong Industrial Co., Ltd. 7.89
goods
Sales of
Sichuan Changhong Precision Electronic Technology Co., Ltd 1.69
goods
Sichuan Changhong Intelligent Manufacturing Technology Co., Sales of
1.41
Ltd goods
Sales of
Beijing Changhong Technology Co., Ltd. 0.98
goods
Sales of
Sichuan Hongmofang Network Technology Co., Ltd. 0.49
goods
Sales of
Sichuan Changhong Network Technolgoy Co., Ltd. 0.39
goods
Sales of
081 Electronic Group Co., Ltd. 0.08
goods
Total 758,378.40 763,488.11
4. Providing services
Related party Content Current Year Last Year
Yuanxin Financial Lease Co., Ltd. Provide the services 2,843,225.41 493,408.67
Sichuan Changhong Electric Co., Ltd. Providing services 2,271,754.66 4,177,122.00
Changhong Huayi Compressor Co., Ltd. Providing services 2,049,559.70 1,245,677.91
Sichuan Service Exp. Appliance Service Chain Co.,
Provide the services 1,977,927.75 7,200.00
Ltd.
Sichuan Zhiyijia Network Technology Co., Ltd. Provide the services 952,679.40 22,279.24
291
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
Related party Content Current Year Last Year
Guangdong Changhong Electronics Co., Ltd. Provide the services 819,840.18 491,029.63
Sichuan Huafeng Technology Co., Ltd. Provide the services 442,842.31 13,205.66
Sichuan Changhong Model Technology Co., Ltd. Providing services 339,008.37 193,737.60
Sichuan Changhong Electronics Holding Group Co.,
Provide the services 311,964.22 -10,800.00
Ltd.
Chengdu Guigu Environmental Tech. Co., Ltd Provide the services 263,625.23 31,941.00
Sichuan Changxin Refrigeration Parts Co., Ltd. Provide the services 229,524.66 120,655.05
Sichuan Changhong Minsheng Logistics Co., Ltd. Provide the services 215,817.23 261,996.34
Sichuan Changhong Property Service Co., Ltd. Provide the services 171,595.00 85,797.50
Sichuan Aiku Technology Co., Ltd. Provide the services 156,191.31
Sichuan Changhong Appliance Technology Co., Ltd. Provide the services 93,760.05 90,613.21
081 Electronic Group Co., Ltd. Provide the services 93,124.78 47,230.97
Mianyang Huafeng Hulian Technology Co., Ltd. Provide the services 88,192.89
Sichuan Changhong Technology Seiko Co., Ltd Provide the services 83,244.16 271,359.98
Sichuan Changhong Jihuang Lithium Technology Co.,
Provide the services 57,269.68 1,088,990.83
Ltd
Sichuan Hongwei Technology Co., Ltd. Provide the services 46,490.57 1,440.00
Guangyuan Hongcheng Industrial Co., Ltd. Provide the services 45,871.56
Sichuan Changhong Electronics Holding Group Co.,
Provide the services 34,555.53 79,350.88
Ltd.
Sichuan Changhong Precision Electronic Technology
Provide the services 4,050.00 5,084.91
Co., Ltd
Sichuan Changhong Electric Product Co., Ltd. Provide the services 3,600.00 11,021.81
Hefei Changhong Industrial Co., Ltd. Provide the services 3,457.50 707.50
Sichuan Qiruik Technology Co., Ltd. Provide the services 1,332.00
Changhong Gelanbo Technology Co., Ltd. Provide the services 1,165,255.05
Sichuan Changhong Network Technolgoy Co., Ltd. Provide the services 610,337.12
Hong Yuan Ground Energy Heat Tech. Co., Ltd. Provide the services 216,981.14
Sichuan Changhong Electric Technology Co., Ltd. Provide the services 94,339.62
Sichuan Changhong Gerun Environmental Protection
Provide the services 9,433.96
Tech. Co., Ltd.
Sichuan Ailian Technology Co., Ltd. Provide the services 73.58
Sichuan Ansifei Technology Co., Ltd. Provide the services -2,685.82 110,932.11
Sichuan Aichuang Technology Co., Ltd. Provide the services -242,246.63 1,983,316.06
Total 13,355,571.70 12,919,719.33
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.
5. Related rental
292
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
(1) Rent out
Leasing income in Leasing income in
Lessor Lessee Type of assets
Current Period Last Period
Apartments,
Changhong Sichuan Changhong Moulding
Meiling Tech. Co., Ltd.
warehouses, 2,666,842.20 2,394,148.57
factories
warehouse,
Changhong Sichuan Changhong Jijia Fine
Meiling Co., Ltd.
apartment, forklift, 893,341.66 885,768.19
warehouse
Apartments,
Changhong Hefei Changhong Industrial Co.,
Meiling Ltd.
warehouses, 611,142.15 268,530.52
forklifts
Changhong Sichuan Changhong Minsheng
Meiling Logistics Co., Ltd.
apartment, office 181,355.96 214,858.71
Changhong Sichuan Zhiyijia Network
Meiling Technology Co., Ltd.
Apartment 188,256.88 188,256.88
Changhong Sichuan Service Exp. Appliance Apartments,
Meiling Service Chain Co., Ltd. Offices, Forklifts
184,560.00 192,630.48
Sichuan Changhong
Changhong
Meiling
Precision Electronic Apartments 63,600.00 49,200.00
Technology Co., Ltd
Changhong Sichuan Aichuang Science &
Meiling Technology Co., Ltd.
Warehouse 51,093.26 37,519.68
Changhong Sichuan Ailink Technology Co.,
Meiling Ltd.
Warehouse 1,877.88 2,549.43
Changhong Sichuan Aoku Technology Co.,
Meiling Ltd.
Warehouse 9,467.90
Zhongke Sichuan Changhong Minsheng
Workshop 783,911.94
Meiling Logistics Co., Ltd.
Jiangxi Sichuan Changhong Moulding
Workshop 822,288.36 822,288.36
Meiling Tech. Co., Ltd.
Jiangxi Sichuan Changhong Minsheng
Warehouse Office 9,142.86 9,142.86
Meiling Logistics Co., Ltd.
Jiangxi Changhong Huayi Compressor
Warehouse 4,457.14 4,457.14
Meiling Co., Ltd.
Jiangxi Hefei Changhong Industrial Co.,
Warehouse 1,485.71 2,971.43
Meiling Ltd.
Jiangxi Sichuan Aichuang Science &
Warehouse 8,914.29 11,885.71
Meiling Technology Co., Ltd.
Jiangxi Sichuan Changhong Jijia Fine
Workshop 7,428.57
Meiling Co., Ltd.
Jiangxi Sichuan Ailink Technology Co.,
Warehouse 742.86
Meiling Ltd.
Changhong
Sichuan Changhong Jijia Fine
Air- Workshop 3,601,311.97 4,297,682.47
Co., Ltd.
conditioner
Changhong
Sichuan Changhong Minsheng
Air- WorkshopOffice 5,329,999.71 6,597,422.88
Logistics Co., Ltd.
conditioner
Changhong
Sichuan Changhong Electric Co.,
Air- Workshop 1,786,799.14 3,023,158.87
Ltd.
conditioner
Changhong
Sichuan Changxin Refrigeration Processing
Air- 206,666.67 200,000.00
Parts Co., Ltd. equipment of U
conditioner
Changhong
Chengdu Guigu Environmental
Air- House and buildings 28,403.67 28,403.67
Tech. Co., Ltd
conditioner
Changhong
Sichuan Changhong Electric Co.,
Air- plant, equipment 19,563.84
Ltd.
conditioner
293
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
Leasing income in Leasing income in
Lessor Lessee Type of assets
Current Period Last Period
Changhong
Sichuan Huafeng Enterprise
Air- Conference Room 917.43
Group Co., Ltd.
conditioner
Zhongshan Sichuan Changhong Electric Co.,
living area 64,800.00 58,964.52
Changhong Ltd.
Zhongshan Sichuan Changhong Precision
living area 84,000.00 63,000.00
Changhong Electronics Tech. Co., Ltd.
Zhongshan Sichuan Changhong Minsheng Parts of the office
44,297.16 44,297.16
Changhong Logistics Co., Ltd. building rent-out
Zhongshan Sichuan Changhong Device
living area - 3,735.44
Changhong Technology Co., Ltd.
Zhongshan Guangdong Changhong
living area 14,221.47 50,928.93
Changhong Electronics Co., Ltd.
Ridian Sichuan Changhong Device
Workshop 2,147,149.80 2,160,845.66
Technology Technology Co., Ltd.
Ridian Sichuan Changhong Minsheng
Workshop 47,314.29
Technology Logistics Co., Ltd.
Ridian Sichuan Hongwei Technology
Workshop 47,314.29
Technology Co., Ltd.
Total 19,079,782.54 22,445,534.08
294
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
(2)Lessee of related parties
Variable lease
payments not
Rental charges for short-term and included in lease Interest expenses on lease
Rent paid Increased use right assets
low-value assets (if any) liabilities liabilities assumed
measurement (if
any)
Lessor Lessee Type of assets
Amount of Amount of Amount Amount Amount of Amount of Amount of Amount of Amount of Amount of
current period previous period of of current period previous period current period previous period current period previous period
current previous
period period
Hefei
Changhong Changhong Workshop
908,010.50 132,039.57 1,019,690.31 178,103.34 18,927,928.69
Industrial Co., Meiling leasing
Ltd.
Sichuan
Changhong Changhong
Electronics Air- Staff dormitory 127,468.80 176,789.29
Holding Group conditioner
Co., Ltd.
Sichuan
Changhong
Jiahong
Air- Staff dormitory 464,805.24 183,993.72
Industrial Co.,
conditioner
Ltd.
Sichuan
Changhong
Changhong VISA
Air- 341,178.04 341,178.01
Electric Co., Laboratories
conditioner
Ltd.
Sichuan Changhong
Staff dormitory 3,000.00
Changhong Air-
295
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
Variable lease
payments not
Rental charges for short-term and included in lease Interest expenses on lease
Rent paid Increased use right assets
low-value assets (if any) liabilities liabilities assumed
measurement (if
any)
Lessor Lessee Type of assets
Amount of Amount of Amount Amount Amount of Amount of Amount of Amount of Amount of Amount of
current period previous period of of current period previous period current period previous period current period previous period
current previous
period period
Property conditioner
Service Co.,
Ltd.
Chengdu
Changhong
Hongmei
Electronic Office 603,257.97 639,605.43 88,127.19 48,658.27 1,911,007.15
Intelligent
Technology
Co., Ltd.
Guangdong
Changhong Hong yuan
Staff dormitory 104,751.85 91,367.95
Electronics Zhongshan
Co., Ltd.
Sichuan
Changhong
Hong yuan Warehouse
Minsheng 73,962.22
Zhongshan rental
Logistics Co.,
Ltd.
Guangdong
Changhong Zhongshan
Staff dormitory 903,316.49 1,015,654.71
Electronics Changhong
Co., Ltd.
296
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
Variable lease
payments not
Rental charges for short-term and included in lease Interest expenses on lease
Rent paid Increased use right assets
low-value assets (if any) liabilities liabilities assumed
measurement (if
any)
Lessor Lessee Type of assets
Amount of Amount of Amount Amount Amount of Amount of Amount of Amount of Amount of Amount of
current period previous period of of current period previous period current period previous period current period previous period
current previous
period period
Sichuan
Changhong Mianyang Workshop
2,904,844.69 2,447,985.23 378,459.23 813,469.79 701,858.10 13,760,631.85
Electric Co., Meiling leasing
Ltd.
Sichuan
Jiahong Mianyang
Staff dormitory 34,379.52 21,239.84
Industrial Co., Meiling
Ltd.
Sichuan
Changhong
Mianyang
Electronics Staff dormitory 4,363.60
Meiling
Holding Group
Co., Ltd.
Sichuan
Changhong
Mianyang
Property Flower rental 2,317.92
Meiling
Service Co.,
Ltd.
Changhong
Jiangxi
Huayi Staff dormitory 140,483.38 41,792.55
Meiling
Compressor
297
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
Variable lease
payments not
Rental charges for short-term and included in lease Interest expenses on lease
Rent paid Increased use right assets
low-value assets (if any) liabilities liabilities assumed
measurement (if
any)
Lessor Lessee Type of assets
Amount of Amount of Amount Amount Amount of Amount of Amount of Amount of Amount of Amount of
current period previous period of of current period previous period current period previous period current period previous period
current previous
period period
Co., Ltd.
Guangdong
Changhong Ridian
Staff dormitory 132,045.20 126,347.33
Electronics Technology
Co., Ltd.
Chengdu
Changhong
Hongmei
Electronic Office 22,542.67
Intelligent
Technology
Co., Ltd.
Total 2,270,971.19 2,082,007.14 4,416,113.16 3,219,630.23 1,486,276.73 1,040,231.40 701,858.10 34,599,567.69
298
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
6. Related guarantee
Comple
Maximum guarantee
ted
Secured party Sponsored party amount Start Date due (Y/N)
(in 10 thousand Yuan)
Changhong
Meiling Group 5,000.00 2021-3-5 2022-3-5 Yes
Meiling
Changhong
Meiling Group 5,000.00 2022-4-18 2023-4-18 No
Meiling
Changhong Jiangxi
10,000.00 2021-7-8 2022-7-8 Yes
Meiling Meiling
Changhong Changhong air-
8,000.00 2022-3-18 2023-3-17 No
Meiling conditioner
Changhong Changhong air-
5,000.00 2021-9-24 2022-9-24 No
Meiling conditioner
Changhong Changhong air-
15,000.00 2021-12-7 2022-12-6 No
Meiling conditioner
Changhong Changhong air-
30,000.00 2022-4-18 2023-4-18 No
Meiling conditioner
Changhong Ridian
4,000.00 2022-7-7 2023-7-7 No
Meiling Technology
Changhong Ridian
4,000.00 2021-9-16 2022-9-15 Yes
Meiling Technology
Changhong Ridian
3,000.00 2022-3-25 2023-3-25 No
Meiling Technology
Changhong Ridian
4,000.00 2021-3-31 2022-3-31 Yes
Meiling Technology
Changhong Ridian
3,000.00 2021-8-9 2022-8-8 Yes
Meiling Technology
Changhong Ridian
2,000.00 2022-10-25 2023-10-24 No
Meiling Technology
Changhong Ridian
3,500.00 2022-11-10 2023-11-9 No
Meiling Technology
Changhong Zhongshan
5,000.00 2021-7-22 2022-7-22 Yes
Meiling Changhong
Changhong Zhongshan
5,000.00 2021-8-24 2022-8-23 Yes
Meiling Changhong
Changhong Zhongshan
15,000.00 2021-8-9 2022-8-8 Yes
Meiling Changhong
Changhong Zhongshan
2,000.00 2022-2-15 2023-2-14 No
Meiling Changhong
Changhong Zhongshan
18,000.00 2022-4-22 2023-4-22 No
Meiling Changhong
Changhong Zhongshan
6,000.00 2022-3-15 2023-3-15 No
Meiling Changhong
Changhong Zhongshan
10,000.00 2022-4-22 2023-4-22 No
Meiling Changhong
Changhong Zhongshan
7,000.00 2022-3-28 2023-3-29 No
Meiling Changhong
Changhong Zhongshan
13,000.00 2022-6-16 2023-6-16 No
Meiling Changhong
Changhong Zhongshan
20,000.00 2021-4-8 2022-3-18 No
Meiling Changhong
Changhong Zhongshan
13,000.00 2021-3-3 2022-3-3 No
Meiling Changhong
Changhong Zhongshan
20,000.00 2021-3-30 2022-3-30 Yes
Meiling Changhong
Changhong Zhongshan
10,000.00 2021-5-25 2022-5-25 No
Meiling Changhong
299
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
Comple
Maximum guarantee
ted
Secured party Sponsored party amount Start Date due (Y/N)
(in 10 thousand Yuan)
Changhong Zhongshan
9,000.00 2021-3-15 2022-3-15 Yes
Meiling Changhong
Changhong Zhongshan
18,000.00 2021-3-29 2022-3-29 No
Meiling Changhong
Changhong Zhongshan
20,000.00 2022-7-2 2023-7-2 No
Meiling Changhong
Changhong Zhongshan
5,000.00 2022-8-19 2023-8-19 No
Meiling Changhong
Changhong Zhongshan
15,000.00 2022-8-15 2023-8-14 No
Meiling Changhong
Changhong Zhongshan
2,000.00 2021-7-26 2022-7-26 Yes
Meiling Changhong
Changhong Meiling Life
5,000.00 2021-8-18 2022-8-8 Yes
Meiling Appliances
Changhong Meiling Life
5,000.00 2022-9-22 2023-9-21 No
Meiling Appliances
Changhong Meiling Life
2,000.00 2021-10-13 2022-10-12 Yes
Meiling Appliances
Changhong Meiling Life
4,000.00 2021-12-9 2022-11-2 No
Meiling Appliances
Changhong Meiling Life
3,000.00 2022-1-26 2023-1-26 No
Meiling Appliances
Changhong Meiling Life
5,000.00 2022-3-21 2022-8-21 Yes
Meiling Appliances
Changhong Meiling Life
5,000.00 2022-3-16 2023-3-16 No
Meiling Appliances
Changhong Meiling Life
1,000.00 2022-9-8 2023-9-8 No
Meiling Appliances
Changhong Meiling Life
500.00 2022-8-26 2023-8-26 No
Meiling Appliances
Changhong Meiling Life
5,000.00 2021-7-29 2022-7-28 Yes
Meiling Appliances
Changhong Meiling Life
5,000.00 2022-10-26 2023-10-25 No
Meiling Appliances
Changhong Meiling Life
4,500.00 2022-12-8 2023-10-24 No
Meiling Appliances
Changhong
Zhongke Meiling 5,000.00 2021-5-24 2022-5-24 Yes
Meiling
Changhong
Zhongke Meiling 6,000.00 2021-9-22 2022-9-22 Yes
Meiling
Changhong
Zhongke Meiling 2,000.00 2022-9-20 2023-1-27 No
Meiling
Changhong
Zhongke Meiling 5,000.00 2022-11-14 2023-6-19 No
Meiling
Zhongke Meiling Anhui Tuoxing 500.00 2021-4-1 2022-4-1 Yes
Zhongke Meiling Anhui Tuoxing 500.00 2022-6-27 2023-6-27 No
Counter guarantee:
Changhong
Meiling Group 5,000.00 2021-3-5 2022-3-5 Yes
Meiling
Changhong
Meiling Group 5,000.00 2022-4-18 2023-4-18 No
Meiling
Changhong
Jiangxi Meiling 10,000.00 2021-7-8 2022-7-8 Yes
Meiling
Changhong air- Changhong
8,000.00 2022-3-18 2023-3-17 No
conditioner Meiling
Changhong air- Changhong
5,000.00 2021-9-24 2022-9-24 No
conditioner Meiling
300
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
Comple
Maximum guarantee
ted
Secured party Sponsored party amount Start Date due (Y/N)
(in 10 thousand Yuan)
Changhong air- Changhong
15,000.00 2021-12-7 2022-12-6 No
conditioner Meiling
Changhong air- Changhong
30,000.00 2022-4-18 2023-4-18 No
conditioner Meiling
Changhong
Ridian Technology 4,000.00 2022-7-7 2023-7-7 No
Meiling
Changhong
Ridian Technology 4,000.00 2021-9-16 2022-9-15 Yes
Meiling
Changhong
Ridian Technology 3,000.00 2022-3-25 2023-3-25 No
Meiling
Changhong
Ridian Technology 4,000.00 2021-3-31 2022-3-31 Yes
Meiling
Changhong
Ridian Technology 3,000.00 2021-8-9 2022-8-8 Yes
Meiling
Changhong
Ridian Technology 2,000.00 2022-10-25 2023-10-24 No
Meiling
Changhong
Ridian Technology 3,500.00 2022-11-10 2023-11-9 No
Meiling
Zhongshan Changhong
5,000.00 2021-7-22 2022-7-22 Yes
Changhong Meiling
Zhongshan Changhong
5,000.00 2021-8-24 2022-8-23 No
Changhong Meiling
Zhongshan Changhong
15,000.00 2021-8-9 2022-8-8 Yes
Changhong Meiling
Zhongshan Changhong
2,000.00 2022-2-15 2023-2-14 No
Changhong Meiling
Zhongshan Changhong
18,000.00 2022-4-22 2023-4-22 Yes
Changhong Meiling
Zhongshan Changhong
6,000.00 2022-3-15 2023-3-15 No
Changhong Meiling
Zhongshan Changhong
10,000.00 2022-4-22 2023-4-22 No
Changhong Meiling
Zhongshan Changhong
7,000.00 2022-3-28 2023-3-29 No
Changhong Meiling
Zhongshan Changhong
13,000.00 2022-6-16 2023-6-16 No
Changhong Meiling
Zhongshan Changhong
20,000.00 2021-4-8 2022-3-18 Yes
Changhong Meiling
Zhongshan Changhong
13,000.00 2021-3-3 2022-3-3 No
Changhong Meiling
Zhongshan Changhong
20,000.00 2021-3-30 2022-3-30 No
Changhong Meiling
Zhongshan Changhong
10,000.00 2021-5-25 2022-5-25 Yes
Changhong Meiling
Zhongshan Changhong
9,000.00 2021-3-15 2022-3-15 Yes
Changhong Meiling
Zhongshan Changhong
18,000.00 2021-3-29 2022-3-29 Yes
Changhong Meiling
Zhongshan Changhong
20,000.00 2022-7-2 2023-7-2 No
Changhong Meiling
Zhongshan Changhong
5,000.00 2022-8-19 2023-8-19 No
Changhong Meiling
Zhongshan Changhong
15,000.00 2022-8-15 2023-8-14 No
Changhong Meiling
Meiling Life Changhong
2,000.00 2021-7-26 2022-7-26 Yes
Appliances Meiling
Meiling Life Changhong
5,000.00 2021-8-18 2022-8-8 Yes
Appliances Meiling
301
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
Comple
Maximum guarantee
ted
Secured party Sponsored party amount Start Date due (Y/N)
(in 10 thousand Yuan)
Meiling Life Changhong
5,000.00 2022-9-22 2023-9-21 No
Appliances Meiling
Meiling Life Changhong
2,000.00 2021-10-13 2022-10-12 Yes
Appliances Meiling
Meiling Life Changhong
4,000.00 2021-12-9 2022-11-2 No
Appliances Meiling
Meiling Life Changhong
3,000.00 2022-1-26 2023-1-26 No
Appliances Meiling
Meiling Life Changhong
5,000.00 2022-3-21 2022-8-21 Yes
Appliances Meiling
Meiling Life Changhong
5,000.00 2022-3-16 2023-3-16 No
Appliances Meiling
Meiling Life Changhong
1,000.00 2022-9-8 2023-9-8 No
Appliances Meiling
Meiling Life Changhong
500.00 2022-8-26 2023-8-26 No
Appliances Meiling
Meiling Life Changhong
5,000.00 2021-7-29 2022-7-28 Yes
Appliances Meiling
Meiling Life Changhong
5,000.00 2022-10-26 2023-10-25 No
Appliances Meiling
Meiling Life Changhong
4,500.00 2022-12-8 2023-10-24 No
Appliances Meiling
Changhong
Zhongke Meiling 5,000.00 2021-5-24 2022-5-24 Yes
Meiling
Changhong
Zhongke Meiling 6,000.00 2021-9-22 2022-9-22 Yes
Meiling
Changhong
Zhongke Meiling 2,000.00 2022-9-20 2023-1-27 No
Meiling
Changhong
Zhongke Meiling 5,000.00 2022-11-14 2023-6-19 No
Meiling
Anhui Tuoxing Zhongke Meiling 500.00 2021-4-1 2022-4-1 Yes
Anhui Tuoxing Zhongke Meiling 500.00 2022-6-27 2023-6-27 No
7. Assets transfer and debt reorganization of related parties
Related party Type Current Period Last Period
Purchase and construction
Sichuan Hongxin Software Co., Ltd. 5,668,396.24 3,912,026.22
of fixed assets
Sichuan Changhong Electric Holding Construction of fixed
2,264,150.94
Group Co., Ltd. assets
Construction of fixed
Sichuan Changhong Electric Co., Ltd. 1,400,000.03 1,833,245.49
assets
Purchase of intangible
Sichuan Hongxin Software Co., Ltd. 1,254,943.40 141,509.43
assets
Sichuan Changhong Intelligent Purchase and construction
536,783.19 9,990,763.76
Manufacturing Technology Co., Ltd. of fixed assets
Mianyang Science & Technology City Big Purchase and construction
450,367.31
Data Technology Co., Ltd. of fixed assets
Sichuan Changhong Jiahua Information Purchase and construction
394,336.28
Product Co., Ltd. of fixed assets
Purchase and construction
Sichuan Qiruik Technology Co., Ltd. 65,575.22
of fixed assets
Sichuan Zhiyijia Network Technology Co., Purchase and construction
22,384.06
Ltd. of fixed assets
Purchase and construction
Guangdong Changhong Electric Co., Ltd. 1,800.00 39,157.29
of fixed assets
302
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
Related party Type Current Period Last Period
Sichuan Hongcheng Construction Purchase and construction
1,950,244.22
Engineering Co., ltd of fixed assets
Purchase and construction
081 Electronic Group Co., Ltd. 1,064,220.18
of fixed assets
Purchase and construction
Sichuan Huanyu Industrial Co., Ltd. 366,972.48
of fixed assets
Sichuan Aoku Technology Co., Ltd. Sale of fixed assets 121,030.34
Sichuan Changhong Electric Appliance
Sale of fixed assets 339,000.00
Co., Ltd
Total 12,179,767.01 19,637,139.07
8. Other
Current Period (in 10 Last Period (in 10
Name of company Content
thousand Yuan) thousand Yuan)
Yuanxin Financial Lease Co.,
Ltd.
Financing business 40,942.87 49,202.19
9. Related transaction with Changhong Finance Company
(1) Saving balance
Deposit interest
Name of company Year-end balance Opening balance income for the current
year
Changhong Meiling Co., Ltd. 1,576,180,731.79 1,750,741,958.39 50,538,328.67
Sichuan Changhong Air-conditioner Co.,
975,985,071.65 667,374,291.19 11,150,106.68
Ltd
Zhongshan Changhong Electric Co., Ltd 490,792,121.80 472,478,264.48 10,354,004.01
Hefei Changhong Meiling Life Appliances
218,066,151.18 204,429,613.95 6,531,403.16
Co., Ltd.
Ground Energy Heat Pump Tech.
112,954,489.66 117,428,653.82 1,290,050.34
(Zhongshan) Co., Ltd.
Zhongke Meiling Cryogenic Technology
50,619,272.37 89,236,818.21 2,099,452.15
Co., Ltd
Changhong Meiling Ridian Technology
33,296,010.27 78,870,573.40 1,585,833.49
Co., Ltd.
Hebei Hongmao Daily Appliance
6,769,834.89 4,185,481.97 66,751.41
Technology Co., Ltd.
Hefei Meiling Group Holdings Limited 207,918.41 227,396.51 15,567.21
Anhui Tuoxing Technology Co., Ltd. 84,076.99 58,438.14 2,182.07
Mianyang Meiling Refrigeration Co., Ltd. 21,366.13 26,052.45 116.48
Ground Energy Heat Pump Tech. Co., Ltd. 13,260.69 19,795.17 72.39
Jiangxi Meiling Electric Appliance Co.,
9,626.58 9,585.70 42.11
Ltd.
Anhui Ling'an medical equipment Co.,
0.08 0.18
Ltd.
Total 3,464,999,932.49 3,385,086,923.38 83,633,910.35
(2) Discounted bills
Name of company Bank acceptance Bank acceptance Discounting fees
Discounted face Amount of
Discounted amount
amount expenses
303
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
Name of company Bank acceptance Bank acceptance Discounting fees
Changhong Meiling Co., Ltd. 588,310,334.02 583,608,950.21 4,701,383.81
Hefei Changhong Meiling Life Appliances
Co., Ltd.
100,357,828.04 99,547,412.58 810,415.46
Ground Energy Heat Pump Tech.
49,319,997.36 48,803,378.37 516,618.99
(Zhongshan) Co., Ltd.
Changhong Meiling Ridian Technology Co.,
2,761,177.78 2,743,359.00 17,818.78
Ltd.
Total 1,983,753,263.19 1,972,039,596.27 11,713,666.92
(3) Issuance of invoices
Name of company Issuer Bill amount Types
Sichuan Changhong Air- Sichuan Changhong Group Finance
1,620,626,183.52 Bank acceptance
conditioner Co., Ltd. Co., Ltd.
Zhongshan Changhong Sichuan Changhong Group Finance
549,265,335.22 Bank acceptance
Electric Co., Ltd. Co., Ltd.
Sichuan Changhong Group Finance
Changhong Meiling Co., Ltd. 470,123,204.32 Bank acceptance
Co., Ltd.
Hefei Changhong Meiling Sichuan Changhong Group Finance
132,204,610.85 Bank acceptance
Life Appliances Co., Ltd. Co., Ltd.
Hefei Meiling Group Sichuan Changhong Group Finance
107,338,138.76 Bank acceptance
Holdings Limited Co., Ltd.
Ground Energy Heat Pump Sichuan Changhong Group Finance
106,388,816.96 Bank acceptance
Tech. (Zhongshan) Co., Ltd. Co., Ltd.
Zhongke Meiling Cryogenic Sichuan Changhong Group Finance
73,287,905.02 Bank acceptance
Technology Co., Ltd. Co., Ltd.
Hebei Hongmao Household
Sichuan Changhong Group Finance
Appliance Technology Co., 20,395,764.16 Bank acceptance
Co., Ltd.
Ltd
Changhong Meiling Ridian Sichuan Changhong Group Finance
10,835,727.36 Bank acceptance
Technology Co., Ltd. Co., Ltd.
Anhui Tuoxing Technology Sichuan Changhong Group Finance
723,282.19 Bank acceptance
Co., Ltd. Co., Ltd.
Total 3,091,188,968.36
(4) Borrowings: Nil
(5) Receivable factoring: Nil
10.Remuneration for key management
Item Current Year (In 10 thousand yuan) Last Year (In 10 thousand yuan)
Total remuneration 767.09 803.56
Including: performance
incentive fund
(iii) Come and go balance with related parties
1. Receivable items
304
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
Balance at year-end Balance at year-begin
Item Related party Bad debt Bad debt
Book balance Book balance
provision provision
Account Sichuan Zhiyijia Network 590,034,682.5
440,238,552.19 68,442,866.04
receivable Technology Co., Ltd. 2
Account CHANGHONG(HK)TRA
60,041,559.36 14,593,546.00
receivable DINGLIMITED
Changhong International
Account
Holdings (Hong Kong) Co., 53,357,857.70 1,137,912.73 35,985,886.24 971,525.15
receivable
Ltd.
Account ChanghongRuba Electric
41,456,983.76 41,456,983.76 39,274,379.69
receivable Company (Private) Ltd. 2,991,971.20
Account CHANGHONGELECTRIC
24,835,082.91 55,903,139.06
receivable (AUSTRALIA)PTY.LTD.
Account
Orion.PDP.Co.,ltd 18,169,829.16 96,826.72 7,923,855.47
receivable
Account Changhong Europe Electric
9,350,935.09 3,382,179.18
receivable s.r.o
Account Sichuan Changhong
944,871.90 2,512,637.87 569.25
receivable Electric Appliance Co., Ltd
CHANGHONG
Account
ELECTRIC MIDDLE 755,784.47 120,716.04
receivable
EAST FZCO
Account Sichuan Yuanxin finance
545,991.98 7,852.07
receivable lease Co., Ltd.
Account Changhong Huayi
432,726.15 642,605.16
receivable Compressor Co., Ltd.
Account Ground Energy Heat Pump
342,203.53 57,322.40 1,251,751.92 185,439.69
receivable Tech. Co., Ltd.
Sichuan Service Exp.
Account
Appliance Service Chain 288,033.65 67,279.43
receivable
Co., Ltd.
Sichuan Changhong
Account
Electric Holding Group 240,063.11
receivable
Co., Ltd.
Account Guangdong Changhong
147,629.98 5,239.75 248.56
receivable Electric Co., Ltd.
Account Leyijia Chain Management
33,928.00 141,775.39
receivable Co., Ltd.
Account Sichuan Changhong Model
17,580.00
receivable Technology Co., Ltd.
Sichuan Changhong
Account
Precision Electronic 8,204.00
receivable
Technology Co., LTD
Sichuan Changhong
Account
Minsheng Logistics Co., 4,305.20 6,619.80
receivable
Ltd.
Account Sichuan Aichuang
1,595,719.32
receivable Technology Co., Ltd.
Account Changhong Gelanbo
705,000.00
receivable Technology Co., Ltd.
Account Sichuan Ansifei
52,448.00
receivable Technology Co., Ltd.
Sichuan Changhong
Account
International Hotel Co., 17,064.50
receivable
Ltd.
Sichuan Hongmofang
Account
Network Technology Co., 4,380.00
receivable
Ltd.
Account
Sichuan Changhong
paid in 1,613.85
Property Service Co., Ltd.
advance
305
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
Balance at year-end Balance at year-begin
Item Related party Bad debt Bad debt
Book balance Book balance
provision provision
Account
Sichuan Ailian Technology
paid in 178.22 396.02
Co., Ltd.
advance
Account Sichuan Changhong
paid in Intelligence Technology 925,280.67
advance Co., Ltd.
Account
Sichuan Aichuang
paid in 684,000.00
Technology Co., Ltd.
advance
Account
Sichuan Yizhijia Network
paid in 67,678.94
Technology Co., Ltd.
advance
Account
Hefei Changhong Industrial
paid in 38,029.06
Co., Ltd.
advance
Other
Changhong Grand-Pro
account 267,000.00 267,000.00
Technology Co., Ltd.
receivable
Other
Sichuan Yizhijia Network
account 200,000.00
Technology Co., Ltd.
receivable
Other Sichuan Changhong
account Jihuang Lithium 129,000.00 129,000.00
receivable Technology Co., Ltd
Other
Sichuan Changhong
account 60,000.00 59,857.21
Electric Appliance Co., Ltd
receivable
Other Sichuan Service Exp.
account Appliance Service Chain 42,202.32 200,000.00
receivable Co., Ltd.
Other
Sichuan Changhong
account 17,232.50 17,232.50
Technology Seiko Co., Ltd
receivable
Other
Sichuan Changhong
account 1,291.08
Property Service Co., Ltd.
receivable
Other
Guangdong Changhong
account 25,899.43
Electric Co., Ltd.
receivable
Other
Sichuan Changhong Source
account 19,200.00
Co., Ltd.
receivable
756,662,331.2
Total 651,930,640.11 111,191,911.65 4,149,753.85
4
2.Payable items
Balance at year- Balance at year-
Item Related party
end begin
Account
Sichuan Changhong Moulding Tech. Co., Ltd. 102,735,433.69 27,523,349.71
payable
Account
Sichuan Changhong Jijia Fine Co., Ltd. 48,446,852.70 6,608,580.22
payable
Account
Sichuan Changhong Electric Appliance Co., Ltd 24,051,245.19 115,854.26
payable
Account
Changhong Huayi Compressor Co., Ltd. 21,947,957.79 3,518,643.94
payable
Account
Sichuan Changhong Package Printing Co., Ltd. 20,626,143.74 5,553,060.13
payable
306
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
Balance at year- Balance at year-
Item Related party
end begin
Account Changhong International Holdings (Hong Kong)
17,634,983.97 12,718,331.49
payable Co., Ltd.
Account
ChanghongRuba Electric Company (Private) Ltd. 15,632,092.38
payable
Account
Sichuan Changxin Refrigeration Parts Co., Ltd. 14,948,871.57 7,599,199.65
payable
Account
Sichuan Aichuang Science & Technology Co., Ltd. 13,416,872.06 7,290,455.51
payable
Account
Sichuan Aoku Technology Co., Ltd. 8,194,344.79
payable
Account
Mianyang Highly Electric Co., Ltd. 7,021,268.99 8,324,553.75
payable
Account
Sichuan Changhong Device Technology Co., Ltd. 5,027,626.73 2,450,482.58
payable
Account
Sichuan Changhong Electronic Products Co., Ltd. 2,892,627.07 372,065.37
payable
Account
Sichuan Ailian Technology Co., Ltd. 2,098,307.00 3,014,723.46
payable
Account
Sichuan Changhong Device Technology Co., Ltd. 1,728,816.01 0.18
payable
Account
Sichuan Changhong Minsheng Logistics Co., Ltd. 1,633,873.17 760,136.08
payable
Account
Guangdong Changhong Electronics Co., Ltd. 1,152,123.68 1,296,473.51
payable
Account Sichuan Service Exp. Appliance Service Chain Co.,
754,759.55 449,551.04
payable Ltd.
Account Sichuan Changhong Intelligent Manufacturing
670,179.94 1,911,174.67
payable Technology Co., Ltd.
Account
Sichuan Hongxin Software Co., Ltd. 490,315.10 28,301.89
payable
Account
Sichuan Changhong International Hotel Co., Ltd. 99,873.00
payable
Account
081 Electronic Group Co., Ltd. 53,026.90 53,196.86
payable
Account
Chengdu Guigu Environmental Tech. Co., Ltd 34,717.86
payable
Account Sichuan Changhong New Energy Technology Co.,
27,120.00 8,000.40
payable Ltd.
Account
Sichuan Hongyu Metal Manufacturing Co., Ltd. 14,662.40 14,662.40
payable
Account
Hefei Changhong Industrial Co., Ltd. 13,283.74
payable
Account Sichuan Changhong Electric Holding Group Co.,
12,932.00
payable Ltd.
Account
Sichuan Zhiyijia Network Technology Co., Ltd. 8,752.84
payable
Account
Sichuan Qiruik Technology Co., Ltd. 6,805.20
payable
Account
Sichuan Changhong Source Co., Ltd. 1,831.62 1,870.82
payable
Account
Sichuan Jiahong Industrial Co., Ltd. 300.00
payable
Account
Hunan Grand-Pro Intelligent Tech. Company 391,610.62
payable
Account Chengdong Changhong Electric Technology Co.,
326,258.23
payable Ltd.
Account
Sichuan Hongcheng Construction Co., Ltd. 50,000.00
payable
Account
Hong Yuan Ground Energy Heat Tech. Co., Ltd 0.01
payable
307
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
Balance at year- Balance at year-
Item Related party
end begin
Account Sichuan Changhong International Travel Service
90,789.00
payable Co., Ltd
Contract
Sichuan Aichuang Technology Co., Ltd. 1,961,333.35
liability
Contract Sichuan Changhong Intelligence Manufacturing
1,120,221.22
liability Technology Co., Ltd.
Contract
Sichuan Changhong Electric Appliance Co., Ltd 447,676.77 547,736.39
liability
Contract
Chengdu Guigu Environmental Tech. Co., Ltd 171,499.69 1,520.35
liability
Contract CHANGHONG ELECTRIC MIDDLE EAST
92,761.51
liability FZCO
Contract
Sichuan Baiku Technology Co., Ltd. 71,396.02
liability
Contract
Leyijia Chain Management Co., Ltd. 70,485.08 828,419.67
liability
Contract
Sichuan Qisai Microelectronic Co., Ltd. 65,599.81
liability
Contract
Yibin Hongxing Electric Co., Ltd. 43,362.83
liability
Contract
Hong Yuan Ground Energy Heat Tech. Co., Ltd 39,343.58 41,894.81
liability
Contract
Sichuan Changhong Source Co., Ltd 27,300.88
liability
Contract Sichuan Service Exp. Appliance Service Chain
10,174.94 303,764.99
liability Co., Ltd.
Contract Sichuan Changhong Electric Holding Group Co.,
4,495.58
liability Ltd.
Contract
Sichuan Anshifei Technology Co., Ltd. 2,736.19
liability
Contract
CHANGHONG(HK)TRADINGLIMITED 893.51 817.96
liability
Contract
081 Electronic Group Co., Ltd. 22.61 22.61
liability
Contract
Sichuan Changhong International Hotel Co., Ltd 0.88
liability
Contract Guangyuan Changhong Electric Technology Co.,
0.03
liability Ltd.
Contract
Sichuan Aoku Technology Co., Ltd. 358,528.90
liability
Contract
Sichuan Changhong Device Technology Co., Ltd. 59,317.08
liability
Contract
Guangyuan Hongcheng Industrial Co., Ltd. 22,935.78
liability
Contract
Sichuan Changhong Minsheng Logistics Co., Ltd. 3,362.83
liability
Contract
Sichuan Tianyou Guigu Technology Co., Ltd 185.84
liability
Contract
Sichuan Zhiyijia Network Technology Co., Ltd. 34.38
liability
Lease liability Hefei Changhong Industrial Co., Ltd. 17,887,878.62 24,644,347.94
Sichuan Changhong Electric Ap Chengdu
Lease liability 9,129,947.19 11,332,933.78
Changhong Electronic Technology Co., Ltd.
Chengdu Changhong Electronic Technology Co.,
Lease liability 10,468.90 977,917.93
Ltd.
Other payable Sichuan Changhong Minsheng Logistics Co., Ltd. 111,049,082.37 100,309,779.69
Sichuan Service Exp. Appliance Service Chain Co.,
Other payable 80,970,437.14 116,814.89
Ltd.
Other payable Yuanxin Financial Lease Co., Ltd. 79,112,334.67 79,697,695.46
308
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
Balance at year- Balance at year-
Item Related party
end begin
Other payable Sichuan Changhong Moulding Tech. Co., Ltd. 2,700,501.98 2,194,205.68
Other payable Changhong Huayi Compressor Co., Ltd. 1,698,900.00 1,598,900.00
Sichuan Changhong Jineng Sounshine Technology
Other payable 500,000.00 500,000.00
Co., Ltd.
Other payable Sichuan Qiruik Technology Co., Ltd. 479,244.80 175,244.04
Other payable Sichuan Zhiyijia Network Technology Co., Ltd. 429,131.05 784,247.43
Other payable Sichuan Changhong Jijia Fine Co., Ltd. 400,500.00 400,500.00
Sichuan Changhong Intelligence Manufacturing
Other payable 255,867.10 608,075.10
technology Co., Ltd.
Other payable Hunan Grand-Pro Intelligent Tech. Company 200,000.00 250,000.00
Other payable Sichuan Aoku Technology Co., Ltd. 189,859.40 96,455.34
Other payable Sichuan Hongxin Software Co., Ltd. 160,000.00
Other payable Sichuan Aichuang Technology Co., Ltd. 100,000.00
Other payable Sichuan Changhong Electric Appliance Co., Ltd 81,251.02 43,634.53
Other payable Sichuan Jiahong Industrial Co., Ltd. 74,316.41 18.00
Other payable Sichuan Changhong Package Printing Co., Ltd. 50,000.00 50,000.00
Other payable Sichuan Ailian Technology Co., Ltd. 50,000.00 50,000.00
Other payable Sichuan Changhong Electronic Products Co., Ltd. 50,000.00 50,000.00
Other payable Hefei Changhong Industrial Co., Ltd. 50,000.00
Other payable Sichuan Changxin Refrigeration Parts Co., Ltd. 46,702.03 46,702.03
Other payable Guangdong Changhong Electronics Co., Ltd. 38,429.50 79,304.55
Other payable CHANGHONG(HK)TRADINGLIMITED 29,808.54 26,435.95
Other payable Sichuan Hongwei Technology Co., Ltd. 220,425.76
Changhong International Holdings (Hong Kong)
Other payable 52,728.63
Co., Ltd.
Sichuan Changhong Electronics Holding Group
Other payable 35,359.74
Co., Ltd.
Other payable Chengdu Guigu Environmental Tech. Co., Ltd 25,132.00
Sichuan Changhong Precision Electronic
Other payable 0.01
Technology Co., Ltd
Total 621,251,965.88 317,006,725.85
(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
309
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
yuan.
2. Contingency from external guarantee: Nil
3. Other contingency: Nil
XIV. Commitments: Nil
XV. Events occurring after the balance sheet date
1. Important non-adjustment items: Nil
2. Profit distribution:
For year of 2022, the individual statement of the parent company show net profit of 180,902,350.76 yuan,
according to the auditing from Shine Wing Certified Public Accountants (LLP). In accordance with relevant
regulations, the retained profit at beginning of Current Year amounted as 952,820,937.05 yuan, deducted
the 2021 profit distributed 51,496,185.75 yuan and after extract for statutory surplus reserve
18,090,235.08 yuan,the retained profit in individual statement of the parent company cumulative counted
as 1,064,136,866.98 yuan at end of 2022. In addition, for year of 2022, the net profit attributable to owners
of parent company amounted as 244,538,734.49 yuan. According to relevant regulations, the consolidated
statement covers and retained profit of 734,129,724.00 yuan at the beginning of the year, after deducted
the 2021 profit distribution of51,496,185.75 yuan and extract for statutory surplus reserves of
18,090,235.08 yuan, the cumulative retained profit of the consolidated statement at end of 2022 is
909,082,037.66yuan.
According to relevant regulations, the company's profit distribution shall be based on the profit available
for distribution of the parent company, and shall comply with the principle of the lower of the profit
available for distribution in the consolidated statement and the parent company statement. Therefore, the
profit available for distribution in 2022 is the cumulative undistributed profit of 909,082,037.66 yuan in
the consolidated statement at the end of 2022.
According to relevant laws and regulations and the "Articles of Association", and comprehensively
considering the interests of shareholders and the company's long-term development needs, it is proposed
to:
The Company distributed a cash dividend of RMB 0.9 (including tax) for every 10 shares to all
shareholders based on the total share capital of 1,029,923,715 shares on December 31, 2022, with no bonus
or conversion of reserve fund into share capital. It is expected to distribute a cash dividend of RMB
92,693,134.35 After this distribution, it is estimated that the remaining accumulated undistributed profit of
the parent company is RMB 971,443,732.63, and the remaining undistributed profit will be carried forward
310
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
to the next year for distribution.
The aforesaid proposals have been deliberated and approved at the 31st session of 10th BOD, and is subject
to the approval of shareholders general meeting.
3.Majo r sale s retu rn : 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 info rma tion
In RMB 10,000
Refrigerator
, Air-
Smallhome
Item freezer conditione Other Salesinbranch Total
appliances
Washing r
machine
Operation income 856,404.86 992,462.74 187,015.90 39,205.49 53,566.97 2,021,522.02
Including: foreign trade
849,318.67 992,432.38 164,939.35 14,831.62 2,021,522.02
income
Income from
transactions between 7,086.18 30.37 22,076.55 24,373.87 53,566.97
divisions
Operation expenses 872,122.55 976,836.38 183,685.39 35,052.99 53,433.28 2,014,264.03
Operation profit -15,717.69 15,626.36 3,330.51 4,152.50 133.69 7,257.99
Total assets 1,144,102.37 532,976.11 82,175.95 21,328.23 176,209.59 1,604,373.07
Total liability 631,664.78 400,090.39 57,697.34 8,121.41 32,716.40 1,064,857.52
Supplementary information
Depreciation and amortization
21,561.66 14,927.46 389.47 601.53 -21.23 37,501.35
expenses
Capital expenditure 19,679.39 13,799.56 27.27 1,059.00 54.87 34,510.35
Total assets do not include deferred income tax assets, and total liabilities exclude deferred
income tax liabilities.
7. Other major transactions and events shows impact on investor’s decision-making: Nil
311
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
XVII. Notes to main items of financia l statement of paren t compa ny
1.Account receivable
(1) Presented according to the bad debt accrual method
Amount at year-end
Category Book balance Bad debt provision
Ratio(% Ratio( Book value
Amount Amount
) %)
Account receivable that
withdrawal bad debt provision 966,219,951.36 80.19 41,766,187.59 4.32 924,453,763.77
by single item
Including: Related party
930,280,151.88 77.21 40,223,800.95 4.32 890,056,350.93
payments
Account receivable with letter
28,689,555.75 2.38 28,689,555.75
of credit
Account receivable with
single minor amount but
7,250,243.73 0.60 1,542,386.64 21.27 5,707,857.09
withdrawal single item bad
debt provision
Account receivable
withdrawal bad debt provision 238,724,048.45 19.81 17,616,043.17 7.38 221,108,005.28
by portfolio
Including: account receivable
of engineering customers
Receivables other than
238,724,048.45 19.81 17,616,043.17 7.38 221,108,005.28
engineering customers
Total 1,204,943,999.81 100.00 59,382,230.76 4.93 1,145,561,769.05
(Continued)
Amount at year-begin
Category Book balance Bad debt provision
Book value
Amount Ratio(%) Amount Ratio(%)
Account receivable that
withdrawal bad debt 1,416,366,794.95 88.42 2,554,877.42 0.18 1,413,811,917.53
provision by single item
Including: Related party
1,390,662,728.52 86.82 2,203,703.69 0.16 1,388,459,024.83
payments
Account receivable with letter
25,352,892.70 1.58 25,352,892.70
of credit
Account receivable with
single minor amount but
351,173.73 0.02 351,173.73 100.00
withdrawal single item bad
debt provision
Account receivable
withdrawal bad debt 185,510,434.61 11.58 16,670,455.89 8.99 168,839,978.72
provision by portfolio
Including: account receivable
6,246,264.00 0.39 3,123,132.00 50.00 3,123,132.00
of engineering customers
Receivables other than
179,264,170.61 11.19 13,547,323.89 7.56 165,716,846.72
engineering customers
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
312
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
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, Involving 4 customers.
2) Account receivable withdrawal bad debt provision by portfolio
A. Account receivable of engineering customers
Balance at year-end
Account age
Book balance Bad debt Accrual ratio (%)
Within 3 months(3 months included) 201,773,944.94 2,017,739.45 1.00
Over 3 months and within 6 months (6 9,319,360.50 931,936.05
months included) 10.00
Over 6 months and within one year (One year 5,821,154.56 1,164,230.91
included) 20.00
over one year-within two years (2 years 13,330,951.73 6,665,475.87
included) 50.00
Over 2 years - within 3 years (3 years 8,209,879.17 6,567,903.34
included) 80.00
Over 3 years 268,757.55 268,757.55 100.00
Total 238,724,048.45 17,616,043.17
(2) By account age
Account age Ending balance Opening balance
Within 3 months(3 months included) 1,100,472,354.68 667,235,077.95
Over 3 months and within 6 months (6 months
30,307,002.60 867,911,914.43
included)
Over 6 months and within one year (One year
18,031,084.91 35,781,521.18
included)
over one year-within two years (2 years
31,469,257.52 13,453,956.99
included)
Over 2 years - within 3 years (3 years included) 8,570,995.44 6,594,527.78
Over 3 years 16,093,304.66 10,900,231.23
Total 1,204,943,999.81 1,601,877,229.56
(3) Bad debt reserves of the account receivable
Amount change in the year
Balance at year- Balance at year-
Category Accrual Collected or Resale or write-
begin end
switch back off
Bad debt
19,225,333.31 40,156,897.45 59,382,230.76
provision
Total 19,225,333.31 40,156,897.45 59,382,230.76
(4) Top 5 balance of account receivable aggregated by the debtor at end of the period amounted to
313
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
965,166,380.36 yuan, accounted for 80.10% of the receivables at balance of current period-end, the
bad debt provision amounted as 41,248,943.79 yuan.
(5) Receivables derecognized due to the transfer of financial assets: 701,181,578.79 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 29,903,408.82 40,708,614.68
Total 29,903,408.82 40,708,614.68
(1) By nature
Nature Ending book balance Opening book balance
Export tax refund and Other tax refundable 12,703,975.11 26,634,190.54
Cash deposit 2,528,111.92 2,788,111.92
Loans of employee’s pretty cash 7,342,858.38 4,383,234.18
Related party in consolidation statement 5,162,387.15 4,859,662.12
Related party not in consolidation
42,202.32 200,000.00
statement
Other 2,173,873.94 1,893,415.92
Total 29,953,408.82 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 Total
for the whole duration
credit loss in duration (no
(credit impairment has
next 12 months credit
occurred)
impairment)
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
Reversal in Current Period
Conversion in Current Period
314
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
First stage Second stage Third stage
Expected credit
Expected credit loss
Bad debt reserves Expected loss for the whole Total
for the whole duration
credit loss in duration (no
(credit impairment has
next 12 months credit
occurred)
impairment)
Write off in Current Period
Other change
Balance as at 31 December
50,000.00 50,000.00
2022
(3) By account age
Account age Ending balance Opening balance
Within 3 months (3 months included) 24,770,884.16 34,703,730.05
Over 3 months and within 6 months (6 months
261,521.34 1,390,793.47
included)
Over 6 months and within one year (One year
536,189.02 1,144,671.71
included)
over one year-within two years (2 years
1,445,151.00 1,556,311.89
included)
Over 2 years - within 3 years (3 years
1,360,620.00 899,400.00
included)
Over 3 years 1,579,043.30 1,063,707.56
Total 29,953,408.82 40,758,614.68
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
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 (%)
Unit I Export rebates 12,703,975.11 Within 3 months 42.41
Related party
Unit II 2,290,216.37 Within 3 months 7.65
payment
Temporary
Unit III 2,173,873.94 Within 3 months 7.26
payment
Related party Within 3 months ,3-6
Unit IV 1,955,100.37 6.53
payment months
Within 3 months ,3 -6
Employee petty
,Unit V 1,952,828.58 Months,1 year,2 years-3 6.52
cash years
Total 21,075,994.37 70.37
(5) There are no receivables involving government subsidies
315
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
(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
316
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
3. Long-term equity investments
(1) Classification of long-term equity investments
Ending balance Opening balance
Impa
Item irme
Book balance Book value Book balance Impairment loss Book value
nt
loss
Investment in subsidiaries:
Zhongke Meiling Cryogenic
42,652,000.00 42,652,000.00 42,652,000.00 42,652,000.00
Technology Co., Ltd
Mianyang Meiling Refrigeration
95,000,000.00 95,000,000.00 95,000,000.00 95,000,000.00
Co., Ltd.
Hefei Meiling Electric Appliances
54,900,000.00 54,900,000.00 54,900,000.00 54,900,000.00
Marketing Co., Ltd
Zhongshan Changhong Electric Co.,
304,856,419.37 304,856,419.37 304,856,419.37 304,856,419.37
Ltd
Sichuan Changhong Air-conditioner
955,600,437.79 955,600,437.79 955,600,437.79 955,600,437.79
Co., Ltd
Hefei Meiling Group Holdings
113,630,000.00 113,630,000.00 113,630,000.00 113,630,000.00
Limited
Jiangxi Meiling Electric Appliance
79,000,000.00 79,000,000.00 79,000,000.00 79,000,000.00
Co., Ltd.
Changhong Meiling Ridian
91,082,111.12 91,082,111.12 91,082,111.12 91,082,111.12
Technology Co., Ltd.
Meiling CANDY Washing Machine
60,000,000.00 27,675,208.01 32,324,791.99
Co., Ltd
Hefei Meiling Wulian Technology
6,000,000.00 6,000,000.00 6,000,000.00 6,000,000.00
Co., Ltd
CH-Meiling.International
6,889,100.00 6,889,100.00 6,889,100.00 6,889,100.00
(Philippines) Inc.
Hefei Changhong Meiling Life
35,000,000.00 35,000,000.00 35,000,000.00 35,000,000.00
Appliances Co., Ltd.
Investment in associates:
Hefei Xingmei Assets Management 19,899,176.44 19,899,176.44 19,835,366.84 19,835,366.84
317
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
Ending balance Opening balance
Impa
Item irme
Book balance Book value Book balance Impairment loss Book value
nt
loss
Co., Ltd.
Sichuan Zhiyijia Network
51,850,179.61 51,850,179.61 45,787,014.55 45,787,014.55
Technology Co., Ltd.
Total 1,856,359,424.33 1,856,359,424.33 1,910,232,449.67 27,675,208.01 1,882,557,241.66
(2) Investment in subsidiaries
Provision for
Increased in Decreased in Endingbalance of
Invested enterprise Opening balance Ending balance impairmentlosses in
Current Period Current Period impairment
thePeriod
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
Hefei Meiling Wulian Technology Co., Ltd 6,000,000.00 6,000,000.00
CH-Meiling.International (Philippines)
6,889,100.00 6,889,100.00
Inc.
318
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
Provision for
Increased in Decreased in Endingbalance of
Invested enterprise Opening balance Ending balance impairmentlosses in
Current Period Current Period impairment
thePeriod
Total 1,844,610,068.28 60,000,000.00 1,784,610,068.28
(3) Investment in associates
Changesin CurrentPeriod
Provisio Ending
Opening Investment Adjustment Cashdividend
Invested enterprise Additional nfor Ot Endingbalance balance of
balance Negative income for other Otherequity orprofit
Investmen impair he impairment
Investment recognized under comprehensi change announcedto
t ment r
equity ve income issued
loss
Hefei Xingmei Assets Management
19,835,366.84 5,133,209.60 5,069,400.00 19,899,176.44
Co., Ltd.
Sichuan Zhiyijia Network
45,787,014.55 6,063,165.06 51,850,179.61
Technology Co., Ltd.
Total 65,622,381.39 11,196,374.66 5,069,400.00 71,749,356.05
319
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
4. Operation income, operation cost
(1) Operation income and operation cost
Current Period Last Period
Item
Income Cost Income Cost
Main business 6,895,525,518.29 6,249,708,036.25 6,269,665,154.77 5,961,603,587.31
Other business 502,803,114.71 470,539,689.79 1,558,625,413.18 1,504,868,816.56
Total 7,398,328,633.00 6,720,247,726.04 7,828,290,567.95 7,466,472,403.87
(2) Main business - Classified according to product
Current Period Last Period
Product
Operation income Operation cost Operation income Operation cost
Refrigerator,
5,993,436,795.13 5,524,684,113.61 5,616,008,389.43 5,336,569,969.26
freezer
air conditioner 5,518,915.06 5,357,940.73 9,710,128.34 9,624,142.71
Washing machine 664,313,682.51 600,074,230.97 501,650,494.16 481,590,996.66
Small household
appliances and
231,527,349.84 118,997,813.34 141,304,122.43 133,042,607.04
kitchen and
bathroom
Other 728,775.75 593,937.60 992,020.41 775,871.64
Total 6,895,525,518.29 6,249,708,036.25 6,269,665,154.77 5,961,603,587.31
(3) Main business - Classified according to region
Current Period Last Period
Region
Operation income Operation cost Operation income Operation cost
Domestic 4,595,509,445.92 4,242,198,320.28 3,755,627,585.57 3,652,876,947.70
Overseas 2,300,016,072.37 2,007,509,715.97 2,514,037,569.20 2,308,726,639.61
Total 6,895,525,518.29 6,249,708,036.25 6,269,665,154.77 5,961,603,587.31
Top five clients in sales revenue amounted as 4,326,558,532.20 yuan, a 58.48% in total operation
income.
5. Investment income
Item Current Year Last Year
Long-term equity investment income by equity method 11,196,374.66 14,597,022.15
Investment income obtained from disposal of trading financial
-563,287.28 54,779,974.55
assets
Income from financial products 756,009.30 13,016,001.33
Long-term equity investment income by cost method 47,938,347.93 2,754,000.00
Investment income of other non-current financial assets during
10,260,629.45 7,596,184.95
holding period
320
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
Item Current Year Last Year
The termination of income recognition for financial assets
-4,767,753.29
measured by amortized cost
Interest income from debt investment during the holding period 14,763,930.55
Total 79,584,251.32 92,743,182.98
XVIII. Approval of financia l statement
The financial statement has already been approved from the board of directors of the Company for
reporting dated 30 March 2023.
XIX.Supplementary in formation for financia l statement
1. Non-recurring gains and losses for this year
Item Current Year Note
Gains and losses from disposal of non-current assets 27,602,023.18
Governmental subsidy reckoned into current gains/losses (not
including the subsidy enjoyed in quota or ration according to national 86,846,880.06
standards, which are closely relevant to enterprise’s business)
Losses/gains from changes of fair values occurred in holding trading
financial assets and trading financial liabilities, and investment income
obtaining from the disposal of trading financial assets,trading financial 36,077,236.23
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
2,834,795.58
separate impairment test
Other non-operating income and expenses other than the above 761,578.29
Subtotal 154,122,513.34
Less: impact on income tax 3,581,742.85
Impact on minority shareholders’ equity (post-tax) 8,741,529.47
Total 141,799,241.02 —
2. Return on equity and earnings per share
Earnings per share/EPS
Profit during the report Weighted average return (RMB/Share)
period on equity Diluted EPS Diluted EPS
Net profit attributable to ordinary
shareholders of the parent company
4.96% 0.2366 0.2366
Net profit attributable to ordinary
shareholders of the parent company
2.08% 0.0994 0.0994
321
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022
(Unless otherwise specified. RMB for record in the statement）
Earnings per share/EPS
Profit during the report Weighted average return (RMB/Share)
period on equity Diluted EPS Diluted EPS
after deduction of the non-recurring
gains/losses
Chairman: Wu Dinggang
Changhong Meiling Co., Ltd.
March 31, 2023
322
