CHANGHONG MEILING CO., LTD.
Semi-Annual Report 2023
August 2023
Changhong Meiling Co., Ltd. Semi-Annual Report 2023
Section I. Important Notice, Contents and Interpretation
Board of Directors, Supervisory Committee, all directors, supervisors and senior executives of Changhong Meiling
Co., Ltd. (hereinafter referred to as the Company) hereby confirm that there are no any fictitious statements,
misleading statements, or important omissions carried in this report, and shall take all responsibilities, individual
and/or joint, for the reality, accuracy and completion of the whole contents.
Mr. Wu Dinggang, Chairman of the Company, Mr. Pang Haitao, person in charge of accounting work and Mr. Yang
Jun, person in charge of accounting organ (accountant in charge) hereby confirm that the Financial Report of 2023
Semi- Annual Report is authentic, accurate and complete.
The Company did not have directors, supervisors and senior executives of the Company could not guarantee the
reality, accuracy and completion of the whole contents or have objections.
All the directors attended the board meeting to deliberating the Report by a combination of on-site and
communication.
Modified audit opinions notes
□ Applicable √ Not applicable
Risk warning of concerning the forward-looking statements with future planning involved in semi-annual report
√ Applicable □Not applicable
Concerning the forward-looking statements with future planning involved in the Report, they do not constitute a
substantial commitment for investors, investors and the person concerned should maintain adequate risk awareness,
furthermore, differences between the plans, forecast and commitments should be comprehended. Investors are
advised to exercise caution of investment risks.
Investors are advised to read the full text of semi-annual report, and pay particular attention to the following risk
factors:
More details about the possible risks and countermeasures in the operation of the Company are described in the
report “X. Risks and countermeasures” of “Section III Management Discussion and Analysis”, investors are advised
to read the relevant content.
Securities Times, China Securities Journal, Hong Kong Commercial Daily and Juchao Website (www.cninfo.com.cn)
are the media for information disclosure for year of 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
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Changhong Meiling Co., Ltd. Semi-Annual Report 2023
Profit distribution pre-plan or capitalizing of common reserves pre-plan deliberated by the Board in the semi-annual
period
□Applicable √Not applicable
The Company has no plans of cash distribution, bonus shares and capitalizing of common reserves either.
Directors, supervisor and senior executives of the Company respectively signed Written Confirmation Opinions for
2023 Semi-Annual Report.
Supervisory Committee of the Company formed Written Examination Opinions for 2023 Semi-Annual Report.
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Changhong Meiling Co., Ltd. Semi-Annual Report 2023
Contents
I.Important Notice, Table of contents and Definitions 1
II. Company Profile and Main Financial Indexes 2
III. Management Discussion & Analysis 10
IV. Corporate Governance 33
V. Environmental & Social Responsibility 34
VI. Important Events 43
VII. Change of share capital and shareholding of Principal Shareholders 91
VIII. Situation of the Preferred Shares 98
IX. Corporate Bond 99
X. Financial Report 100
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Changhong Meiling Co., Ltd. Semi-Annual Report 2023
Documents Aavailable 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 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. Semi-Annual Report 2023
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.
Changhong Group Refers to Sichuan Changhong Electronics Holding Group Co., Ltd.
Hong Kong Changhong Refers to CHANGHONG (HK) TRADING LIMITED
Meiling Group Refers to Hefei Meiling Group Holdings Limited
Changhong Air-conditioner Refers to Sichuan Changhong Air-conditioner Co., Ltd.
Zhongke Meiling Refers to Zhongke Meiling Cryogenic Technology Co., Ltd.
Mianyang Meiling Refers to Mianyang Meiling Refrigeration Co., Ltd.
Jiangxi Meiling Refers to Jiangxi Meiling Electric Appliance Co., Ltd.
Ridian Technology Refers to Changhong Meiling Ridian Technology Co., Ltd.
Wulian Technology Refers to Hefei Meiling Wulian Technology Co., Ltd
Zhongshan Changhong Refers to Zhongshan Changhong Electric Co., Ltd.
Meiling Life Appliances Refers to Hefei Changhong Meiling Life Appliances Co., Ltd.
Changhong Huayi Refers to Changhong Huayi Compressor Co., Ltd.
Shine Wing Refers to Shine Wing Certified Public Accountants (LLP)
CSRC Refers to China Securities Regulatory Commission
China Securities Regulatory Commission, Anhui Province Securities
Anhui Securities Bureau Refers to
Regulatory Bureau
SSE Refers to Shenzhen Stock Exchange
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Changhong Meiling Co., Ltd. Semi-Annual Report 2023
II. Company Profile and Main Financial Indexes
I.Company Profile
Changhong Meiling,
Short form of the stock Stock code 000521、200521
Hongmeiling B
Short form of the Stock after changed
N/A
(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
II. Person/Way to contact
Secretary of the Board Rep. of security affairs
Name Li Xia Pan Haiyun
No. 2163, Lianhua Road, Economic and No. 2163, Lianhua Road, Economic and
Contact add.
Technology Development Zone, Hefei Technology Development Zone, Hefei
Tel. 0551-62219021 0551-62219021
Fax. 0551-62219021 0551-62219021
E-mail lixia@meiling.com haiyun.pan@meiling.com
III. Others
(I) Way of contact
Whether registrations address, offices address and codes as well as website and email of the Company changed in
reporting period or not
□ Applicable √ Not applicable
Registrations address, offices address and codes as well as website and email of the Company has no change in
reporting period, found more details in Annual Report 2022.
(II) Information disclosure and preparation place
Whether information disclosure and preparation place changed in reporting period or not
□ Applicable √ Not applicable
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Changhong Meiling Co., Ltd. Semi-Annual Report 2023
The newspaper appointed for information disclosure, website for semi-annual report publish appointed by CSRC
and preparation place for semi-annual report have no change in reporting period, found more details in Annual
Report 2022.
(III) Other relevant information
Whether other relevant information has changed in reporting period or not
□Applicable √Not applicable
IV. Main accounting data and financial indexes
Whether it has retroactive adjustment or re-statement on previous accounting data or not
□Yes √No
Changes in the current reporting
Current period Same period last year period compared with the same
period of the previous year (+,-)
Operating income (RMB) 12,828,694,323.57 10,224,503,551.19 25.47%
Net profit attributable to shareholders of
358,054,844.74 60,375,199.25 493.05%
the listed company (RMB)
Net profit attributable to shareholders of
the listed company after deducting non- 381,989,843.82 4,107,468.91 9199.88%
recurring gains and losses (RMB)
Net cash flow arising from operating
1,410,519,809.81 575,053,217.35 145.29%
activities (RMB)
Basic earnings per share (RMB/Share) 0.3477 0.0582 497.42%
Diluted earnings per share (RMB/Share) 0.3477 0.0582 497.42%
Weighted average ROE 6.69% 1.24% Increase by 5.45 percentage points
Changes at the end of the
End of current period End of last year reporting period compared with
the end of the previous year (+,-)
Total assets (RMB) 19,803,890,884.20 16,200,361,212.80 22.24%
Net assets attributable to shareholder of
5,445,503,647.49 5,168,286,872.09 5.36%
listed company (RMB)
V. Accounting data difference under domestic and foreign accounting standards
(I) Difference of the net profit and net assets disclosed in financial report, under both IAS (International
Accounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable √ Not applicable
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Changhong Meiling Co., Ltd. Semi-Annual Report 2023
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.
(II) Difference of the net profit and net assets disclosed in financial report, under both foreign accounting
rules and Chinese GAAP (Generally Accepted Accounting Principles)
√ Applicable □ Not applicable
In RMB
Net profit attributable to shareholders of listed Net assets attributable to shareholders of listed
company company
Current period Previous period Ending amount Opening amount
Chinese GAAP 358,054,844.74 60,375,199.25 5,445,503,647.49 5,168,471,419.72
Items and amount adjusted by foreign accounting rules
Foreign accounting
358,054,844.74 60,375,199.25 5,445,503,647.49 5,168,471,419.72
rules
The Company had no difference of the net profit or net assets disclosed in financial report, under either foreign
accounting rules or Chinese GAAP (Generally Accepted Accounting Principles) in the period.
(III) Reasons for the differences of accounting data under accounting rules in and out of China
√ Applicable □ Not applicable
The “Notice of Relevant Issues of Audit for Company with Domestically Foreign Shares Offering” was issued from
CSRC dated 12 September 2007, since the day issuing, cancel the previous “dual audit” requirement for companies
who offering domestically listed foreign shares (B-share enterprise) while engaging securities practice qualification
CPA for auditing. The Company did not compile financial report under foreign accounting rules since 2007, the
financial report of the Company is complying on the “Accounting Standard for Business Enterprise” in China, and
therefore, there are no differences of accounting data under accounting rules in and out of China at period-end.
VI. Items and amounts of non-recurring profit (gains)/losses
√ Applicable □ Not applicable
In RMB
Item Amount Note
Gains/losses from the disposal of non-current asset (including the
write-off that accrued for impairment of assets)
Governmental subsidy calculated into current gains and
losses(while closely related with the normal business of the
Company, the government subsidy that accord with the provision 28,162,261.54 Found more in “Other income”
of national 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
Found more in “Income of fair
trading financial asset, trading financial liability and investment
-59,214,422.03 value changes”, “Investment
earnings obtained from disposing the trading financial asset,
income”
trading financial liability, and financial assets available for sale,
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Changhong Meiling Co., Ltd. Semi-Annual Report 2023
except for the effective hedging business related to normal
operation of the Company
Switch back of the impairment for receivables that has
Found more in “Account
3,588,165.07
impairment test independently receivable’’
Found more in “Non-operating
Other non-operating income and expenses other than the above 7,689,220.58 income’’ and “Non-operating
expenses’’
Less: impact on income tax -854,743.24
Impact on minority shareholders’ equity (post-tax) 5,014,967.48
Total -23,934,999.08
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. Semi-Annual Report 2023
Section III Management Discussion and Analysis
I. Main businesses of the company engaged in during the Period
The Company is one of China's major electric appliance manufacturers, possesses four major domestic
manufacturing bases in Hefei, Mianyang, Jingdezhen and Zhongshan, and two overseas manufacturing bases in
Indonesia and Pakistan. Currently, we have completed the industry layout of white electricity basically, covering
the full product line including refrigerator, washing machine, air conditioner, kitchen and bath, small household
appliances and others, at the same time, the Company enters the new industrial fields as bio-medical and with certain
achievements made.
For more than 40 years, the Company has always been adhering to the "independent innovation, created in China",
and always focus on the home appliance industry with great persistence, elaborately building the core competitiveness
of enterprises by technological innovation and product innovation. Relying on the cutting-edge R&D team and
advanced technology, Meiling continue to achieve breakthrough results in the variable frequency, intelligence,
refreshment, thin-wall, odourless, energy-saving, forced air cooling, deep cooling and other fields. The Company has
set up the first RoHS public testing center in Anhui Province, the national enterprise technology center, the national
industrial design center, and the 5G industrial internet innovation application laboratory. In recent years, the Company
has successively awarded several national honorary titles as the “Smart Refrigerator Intelligent Manufacturing Pilot
Demonstration Project”, the “National Green Factory”, the “National Industrial Design Center” and “National Leading
Enterprises of Qualify in Home Appliance Industry” etc. At the same time, many products of Meiling have repeatedly
won a number of domestic awards, continuously demonstrating the capabilities and strength of Meiling's intelligent
manufacturing and Meiling brand intelligent innovation technology. At the 2023 China Refrigerator Industry Summit
Forum, Meiling won the 2023 China Refrigerator Industry Smart and Healthy Brand Award, and its product Meiling
M-Fresh Refrigerator BCD-600WQ5S won the title of "Pioneer of Fresh Storage". At the same time, Meiling also was
awarded the first batch of Embedding Grade Certification of Embedded Refrigerator issued by the Organizing
Committee of the 2023 China Refrigerator Industry Summit and the participation certificate of Quality Classification
and "Leader" Evaluation Requirements for Household Refrigerators; "Frozen fresh" BCD-506WP9BDZ refrigerator
won the world record of "The World's Most Constant Temperature Refrigerator in the Freezer" by World Record
Association; Changhong all-dust-free fresh air conditioner won the "Nanshan Award" trophy and honorary certificate
personally awarded by Academician Zhong Nanshan, Chairman of China Brand Building Indoor Air Purification
Brand Cluster and Honorary President of the Association; Meiling 10KG hand-washing-like drum washing machine
RS2H100 set a world record in the World Record Association as "the fastest drum washing machine in the world for
cleaning white shirts stained with 10ml old stains by clean water". In addition, the product also obtained CHCT
certificate of "mother-baby household appliances certification" and CVC certificate of "product double safety standard
certification"; Meiling range hood (CXW-188-MY-KD615) won the "Low Noise Range Hood Award" in the evaluation
of 2023 FT Quality Award; Zhongke Meiling "XC-168L Intelligent Temperature Control Medical Blood Box" and
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Changhong Meiling Co., Ltd. Semi-Annual Report 2023
"CX-1000 Chromatography Cabinet" passed the new product appraisal in Anhui Province and obtained the new
product appraisal certificate in Anhui Province.
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 12.735
billion yuan, a 99.27% of the operating income.
II. Core Competitiveness Analysis
(1) Brand capacity
The Company is one of the famous home appliances manufacturers in China, owns several product lines such as
refrigerator, The "Meiling" brand is listed as one of the most valuable brands in China, It has a younger sub-brand
"AQNA", and in the meantime, it will gradually build the high-end product "M-Fresh" into a sub-brand of high-end
fashion consumers, build a brand matrix and expand brand influence. The year 2023 is the 40th anniversary of the
Company's founding. The Company adheres to the brand positioning of "Meiling, may the happiness come", and
around the value proposition of "Beautiful China Fresh Meiling", and the brand association of "trend", "fun" and
"freshness", creates a fresher lifestyle for consumers, shapes the brand impression of "Meiling = freshness" in
consumers' minds, and accelerates brand revitalization. During the reporting period, the Company carried out and
planned brand management activities such as event marketing and entering the campus around the young mainstream
consumer groups, constantly improving brand activity and exposure, and accelerating well-knownness of the brand;
It has been reported by mainstream media such as People's Daily for many times, which further enhanced the visibility
and reputation of the Company's brand. In terms of products, M-fresh, Wide Narrow Door, Seamless and Frozen Fresh
refrigerators have become the phenomenal faddish in the industry, the hand-washing-like washing machines with
"kneading, striking and washing" have become the pioneers of hand washing, Changhong all-dust-free fresh air
conditioners provide users with 5A fresh air solutions, and tea machines with special temperature and refrigerators
with a temperature of -180° continuously enhances the core competitiveness of the brand. The Company constantly
reshapes its brand image through differentiated innovation measures such as technological innovation, product
innovation and service innovation, creates refrigerators that keep food fresher, washing machines that make clothes
cleaner, air conditioners that make air fresher and household appliances that make water cleaner, thus creating a fresher
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Changhong Meiling Co., Ltd. Semi-Annual Report 2023
life for consumers.
(2) Product capacity
The Company has a relatively advanced and refined R&D and quality assurance system, and passed the
management system certifications such as ISO9001 and ISO14001. Its products are guaranteed with high quality
and reliable performance. In the meantime, the Company has authoritative certifications such as "National
Enterprise Technology Center", "National Industrial Design Center", "National Intellectual Property Demonstration
Enterprise, National Industrial Product Green Design Demonstration Enterprise", "National Technological
Innovation Demonstration Enterprise", "China Industry-University-Research Cooperative Innovation
Demonstration Enterprise", "Anhui Green Energy-Saving Refrigerator Engineering Technology Research Center",
"Anhui Energy-Saving and Fresh Green Refrigerator Engineering Research Center" and "Anhui Manufacturing
Innovation Center" as strong guarantees. In terms of technical research, the Company is committed to the application
of basic technology research and industrialization transfer, and has established a technical strategic plan with
"intelligence, frequency conversion, simulation and fresh-keeping" as the core technologies and "refrigeration, new
materials and foaming" as the key technologies. In terms of product R&D, it has established a three-layer R&D
system, including technical research layer, platform module layer and product management layer. The product
manager responsibility system with the product management as the main body is for product definition and
development, internally driving cost reduction and efficiency improvement, externally driving sales promotion,
which promotes the high integration of "research, production and marketing", and links up the value chain and
business chain to achieve "the same desire and the same frequency and resonance".
In terms of refrigerator products, the Company has been focusing on the refrigeration industry for 40 years,
and has developed a number of different types of refrigerator products, mainly including "M-Fresh" first-generation
series fresh-keeping refrigerators equipped with water molecule activation fresh-keeping technology, "M-Fresh"
second-generation series fresh-keeping refrigerators with zero impact "and "slight freezing" fresh-keeping
technologies, "Very Clean" second-generation refrigerators with upgraded odor purification technology, "Wide
Narrow Door" series cross refrigerators, "Frozen Fresh" series refrigerators and French/Italian/two-door BCD-
401WP, large-capacity and ADF+ negative ion antibacterial "Magic Stone" series (O2O) glass door refrigerators, e-
commerce "Worry-free Embedded" series cross BCD-501WPU9CX, French BCD-505WPU9CX, and "Seamless"
series refrigerators that are flush with the cupboard. In terms of freezer products, it has developed the thin-walled
defrosting and bacteriostatic freezers, -40°C cryogenic intelligent electric control freezers, DTEB series freezers
with intelligent round screen display, large-volume commercial freezers, export vertical air-cooled freezers, SC-
270WE single-door refrigerated vertical display cabinets, and commercial kitchen cabinets.
In terms of washing machine products, it released the hand-washing-like products on the "Very Thin" drum
platform, which not only inherits the core functions of ultra-thin and large drum diameter, but also returned to the
essence of washing machine to strive to create the "clean" washing machine, establishing Meiling's position as a
pioneer in cleaning as hand washing, and demonstrating the hard-core strength of its washing machine products in
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Changhong Meiling Co., Ltd. Semi-Annual Report 2023
the core technology field with triple efforts in cleaning technology, cleaner washing and ultra-high standard
technology. In terms of export, it has actively laid out and enriched the product formation around the energy
efficiency upgrade, and expanded customers.
Its air-conditioning products adhere to the product concept of "good air (dust-free and clean) + good comfort
(far-reaching and near soft cooling) + good sleep (constant temperature and fresh air)", focusing on the three
dimensions of "air-air sense, air vent and air control" for product upgrading and serialization layout. The Company
continuously expands the breadth and depth of air-conditioning products, and based on the traditional air supply
mode, deeply studies the user's use scenarios of air-conditioners, and introduces Changhong double-wing wall-
mounted Q7V air-conditioner, which realizes the ultimate air supply comfort experience of "keeping out the air
without blocking the coolness, blowing the air without blowing people". In addition, in order to meet the needs of
different users for air-conditioning products, the Company will gradually develop high-volume cabinet air-
conditioner and double-wing wall-mounted air-conditioner products. For overseas markets, the Company takes
"what is suitable is the best" as its product core strategy, relies on key customers, and focuses on analyzing customer
and market demand and product benchmarking, so as to finally form a product portfolio suitable for customers and
effectively meet their diversified needs.
In terms of kitchen, household appliances, it adheres to product driving as the strategic support and market
demand as the guidance, strengthens the R&D capabilities and optimizes product structure. During the reporting
period, the intelligent tea machine launched integrates the essence of modern technology and traditional tea art, and
with seven kinds of tea-making procedures, it subverts the traditional tea-making process and brings a new
experience of tea drinking. In terms of kitchen and bathroom products, aiming at the water leakage of water heaters
in the industry, the Company launched an integrated fine steel heating product, which completely eliminates the
pain point of water leakage, and takes the lead in putting forward the 8-year warranty commitment, leading the
product upgrade and service reform. In the meantime, it released the industry-leading gas self-adaptive fully
premixed wall-hung boiler products, the thermal efficiency of which is higher than the national standard, and the
emission of nitrogen oxides reaches five levels, achieving high efficiency, energy saving and green emission. The
gas self-adaptive function better adapted to the climate and gas source changes, and the fully premixed load
adjustment ratio reached 1:10, greatly improving the user's comfortable experience.
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. In
the field of low-temperature storage in life science, it has independently developed a series of high-efficiency
refrigeration system products, and adopted innovative auto-cascade technology, which greatly improved the stability
and reliability of the products, and realized the 100% localization rate of the parts of this series of products, breaking
the monopoly of foreign countries in the field of ultra-low-temperature refrigerated storage. Its technologies of
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Changhong Meiling Co., Ltd. Semi-Annual Report 2023
"double engines and double frequency conversion" and "equipment full-time management" developed on the basis
of high-efficiency refrigeration system broke through the existing domestic ultra-low-temperature refrigeration
technology level, obviously improving the product competitiveness. The newly-launched Ruigu series desktop high-
speed centrifuges are in the forefront of China in terms of centrifugal force, rotational speed, precision and vibration
after repeated tempering in many dimensions, with all performances fully in line with the requirements of centrifugal
preparation equipment for biological components, thus guaranteeing the safety of multi-scenario laboratories.
(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.
For overseas markets, through internal and external cooperation, the Company makes full use of the excellent
marketing strategy and distribution experience accumulated by China household appliances, and combines the
consumption and usage habits of the local market to drive the promotion of comprehensive marketing capabilities for
the international market. It actively explores the market, consolidates core customers, explore potential customers,
cooperates with internationally renowned household appliance brands and large-scale electrical appliance chain
channels, and continuously optimizes the customer structure. It strengthens the cooperation between ice washing and
ice belt washing, realizes the rapid growth of washing machine export and balances the industrial structure. It
accelerates the construction of overseas brands, enhances the popularity of overseas brands, promotes "one country,
one policy", and tailors market strategies to promote market expansion.
III. Main Business Analysis
(1) Overview
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Changhong Meiling Co., Ltd. Semi-Annual Report 2023
Whether the disclosure is the same as the main businesses of the company engaged in during the Period
□Yes √No
1. Overview
In the first half of 2023, the performance of the domestic household appliance market was less than expected.
Although the overseas market rebounded in the second quarter, the household appliance market has already entered
a mature stage, and the industry is facing a situation of saturation and weak growth. The household appliance
industry has entered a new cycle of inventory game. In the first half of the year, the Company's revenue scale
achieved year-on-year growth, profitability improved, and achieved benign development. Its operating income
increased by 25.47% and its net profit increased by 408.88%.
2. Progress of the company's development strategy and business plan during the reporting period
During the reporting period, according to the development strategy, the Company focused on "one goal",
closely followed "three main lines", implemented "four management systems" and unswervingly deepened
marketing transformation into business ideas, and actively promoted the implementation of business plans.
1. Refrigerator industry
At home, adhere to value orientation, improve efficiency in an all-round way, and achieve benign growth in
performance. With commercial inventory turnover as the core, improve the capability of the whole supply chain,
and realize the improvement of capital efficiency through retail drive. Upgrade "fresh, thin, large and embedded"
with users as the center, integrate product planning ability, R&D and manufacturing ability, marketing promotion
ability and user service ability, and realize the improvement of product gross profit margin. Consolidate its own
channels offline to increase scale, focus on refined operations online to improve capacity, expand the pre-installation
market to achieve rapid growth, and achieve double growth in both scale profit and loss in the market. Benchmark
and establish a full-value linked accounting system to greatly improve management efficiency and manufacturing
efficiency.
Overseas, give full play to the advantages of industrial supply chain and domestic and foreign sales synergy,
and promote product frequency conversion, energy saving and air cooling in combination with overseas market
demand; implement "determining production by refrigerator" to promote the efficiency of capital and inventory, and
promote product efficiency through product globalization promotion.
During the reporting period, the Company's refrigerator (freezer) business realized an income of about RMB
4.098 billion, with a year-on-year increase of 22.54%.
2. Air conditioning industry
In domestic air conditioning, implement the marketing strategy of "zone management, channel expansion,
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Changhong Meiling Co., Ltd. Semi-Annual Report 2023
product upgrade and comprehensive retail". Under the framework of the overall strategy of benign operation,
through channel expansion and product upgrade, constantly increase the market share of the base area, constantly
improve the market position, and rapidly increase the online scale, achieving obvious effect of cost reduction and
efficiency increase, and constant improvement of profitability. During the reporting period, the Company's domestic
air-conditioning retail sales grew well, and CHIQ air-conditioning retail sales increased significantly year on year.
The construction of the granary area was further strengthened. The offline self-owned channels and O2O channels
increased substantially year on year, and the capital efficiency turnover increased steadily.
In terms of overseas air conditioners, accelerate channel development and deepen customer transformation,
further consolidate key regional markets such as the Middle East, Latin America and Africa, and continuously
increase the revenue share of TOP10 customers and new customers. Under the guidance of determining production
by "sales" and integrated and efficient operation of the whole value chain, improve the overall manufacturing
efficiency, reduce the cost, and achieve obvious scale effect. Improve development efficiency, realize smooth
platform switching and year-on-year increase of the conversion rate of development projects and orders, achieve
the annual set target of order quantity of newly developed product platforms and frequency conversion products,
further enhance product competitiveness, and provide certain guarantee for sustained business growth. Reach a new
high in production capacity, and increase the output in the first half of the year significantly year on year.
During the reporting period, the Company's air-conditioning business realized an income of about RMB
6.997billion, with a year-on-year increase of 30.78%.
3. Washing machine industry
In washing machines, the Company insists on differentiated competition and optimizes and adjusts the product
structure. In the domestic market, based on the base market, focus on promoting outlet development, deepen channel
transformation, and achieve scale improvement. Give full play to the "Very Thin" differentiated competitive
advantage, closely focus on the needs of users, and launch the "Hand-Washing-Like" series drum washing machines,
defining the positioning of drum waist products, and further enhancing the competitiveness of high-end products of
Meiling washing machines. In terms of foreign markets, expand customer order resources through ice washing
cooperation and achieve a huge breakthrough in overseas markets; Focus on ultra-thin drum, focus on resource
investment, quickly enrich the export product matrix, and significantly improve product profitability; Promote the
timely delivery of new products and comprehensively improve the customer service satisfaction.
During the reporting period, the Company's washing machine business realized an income of about RMB 0.557
billion, with a year-on-year increase of 41.71%.
4. Kitchen, bathroom and household appliance industry
Through accumulation and precipitation, sort out and determine the development direction with tea, cleaning
and heating as the "troika" in kitchen, bathroom and household appliance industry, focus on the core product areas
and help the high-quality development of the industry. Continue to promote the iteration of product technology
16
Changhong Meiling Co., Ltd. Semi-Annual Report 2023
update, promote the successful launch of new products, optimize production processes, accelerate the upgrading of
product structure, improve the marketing network system, and constantly innovate and seek breakthroughs from
R&D, production to marketing.
During the reporting period, the Company's kitchen, bathroom and household appliance business realized an
income of about RMB 0.853 billion, with a year-on-year increase of 17.21%.
5. Biomedical
In the biomedical industry, the Company commits to the field of life sciences, focuses on the scenario needs of
users, continuously enhances the research on core technologies such as ultra-low temperature refrigeration,
automation and informatization, optimizes the R&D process, and stimulates innovation vitality, dedicated to
providing users with professional full-scenario solutions. It insists on user-orientation, deeply subdivides the market
channel layout, improves the professional service level and constantly shapes the brand value; Promotes the
standardization of production technology, improves the management level of value chain, continuously enhances
product quality and production efficiency, and provides users with first-class product and service experience. In the
biomedical industry, the Company mainly develops on the platform of its subsidiary Zhongke Meiling, and its
products are mainly the end products such as low-temperature and ultra-low-temperature storage equipment for
biological cells in the full temperature range from -180°C to 8°C, liquid nitrogen biological containers at -196°C,
biosafety cabinets, clean benches, high-speed refrigerated centrifuges, as well as medical cold chain equipment and
related comprehensive system solutions in the biomedical field. At present, the Company's products and solutions
have been widely used in medical system, blood system, disease control system, health system, universities and
scientific research institutions, biomedical enterprises, and genetic engineering and material research fields.
During the reporting period, the Company's biomedical business realized an income of about RMB 0.127
billion, with a year-on-year decrease of 40.53%.
(2)Y-o-y changes in the key financial data
In RMB
Y-o-y changes
Current Period Same period last year Causes
(+,-)
Operation income 12,828,694,323.57 10,224,503,551.19 25.47% No major changes
Operation cost 11,178,914,075.83 9,061,080,531.06 23.37% No major changes
Sales expense 786,493,259.32 666,066,309.98 18.08% No major changes
Administrative
182,962,865.60 164,132,141.97 11.47% No major changes
expense
It is mainly due to the year-on-year
Financial expense -115,013,926.27 -62,786,327.96 -83.18% increase in the Company's interest income
and exchange income
It is mainly due to the increase in income
tax expenses caused by the increase in
Income tax expenses 925,010.04 -10,115,573.46 109.14%
taxable income of the Company in this
period
R&D investment 279,474,680.96 272,521,887.72 2.55% No major changes
Net cash flow from It is mainly due to the year-on-year
1,410,519,809.81 575,053,217.35 145.29%
operation activity increase in cash received by the Company
17
Changhong Meiling Co., Ltd. Semi-Annual Report 2023
in selling goods and providing services in
this period
It is mainly due to the year-on-year
Net cash flow from
-471,423,480.69 -844,422,733.68 44.17% increase in cash received by the Company
investment activity
to recover its investment in this period
Net cash flow from It is mainly due to limited changes in the
187,731,430.13 -352,220,645.93 153.30%
financing activity Company's deposit in this period
Net increased It is mainly due to the increase in net cash
amount of cash and 1,132,355,171.56 -602,548,686.03 287.93% flow generated by the Company's
cash equivalent operating activities in this period
It is mainly due to the year-on-year
Other income 32,328,256.66 48,325,391.81 -33.10% decrease in government subsidies received
by the Company in this period
It is mainly due to changes in the fair value
Fair value change
-56,428,183.43 3,562,737.04 -1683.84% of the Company's foreign exchange
income
contracts in this period
It is mainly due to the year-on-year
Assets impairment decrease in the provision for inventory
-18,167,335.89 -29,791,822.84 -39.02%
loss depreciation loss of the Company in this
period
Assets disposition It is mainly due to the Company's non-
- 8,358,775.10 -100.00%
income asset disposal income in this period
It is mainly due to the year-on-year
Non-operating
10,704,019.80 2,910,887.79 267.72% increase in the Company's fine income in
income
this period
(3)Major changes on profit composition or profit resources in reporting period
□ Applicable √ Not applicable
No major changes on profit composition or profit resources occurred in reporting period
(4) Constitute of operation revenue/income
In RMB
Current Period Same period last year Y-o-y
Ratio in operation Ratio in operation changes
Amount Amount (+,-)
revenue revenue
Total operation
12,828,694,323.57 100% 10,224,503,551.19 100% 25.47%
revenue
On industry
Manufacture of
household 12,734,698,313.84 99.27% 10,138,489,064.28 99.16% 25.61%
appliances
Other business 93,996,009.73 0.73% 86,014,486.91 0.84% 9.28%
On products
Refrigerator,
4,224,670,444.64 32.93% 3,557,279,193.80 34.79% 18.76%
freezer
Air-conditioning 6,997,497,159.24 54.55% 5,350,650,174.76 52.33% 30.78%
Washing machine 557,352,305.32 4.34% 393,315,713.02 3.85% 41.71%
Small appliance
and kitchen & 852,703,435.92 6.65% 727,498,495.75 7.12% 17.21%
toilet
Other products 102,474,968.72 0.80% 109,745,486.95 1.07% -6.62%
Other business 93,996,009.73 0.73% 86,014,486.91 0.84% 9.28%
On Area
18
Changhong Meiling Co., Ltd. Semi-Annual Report 2023
Domestic 8,930,940,864.80 69.62% 7,556,599,775.06 73.91% 18.19%
Foreign 3,897,753,458.77 30.38% 2,667,903,776.13 26.09% 46.10%
(5)The industries, products or regions that accounting for over 10% of the Company’s operating revenue or
operating profit
√Applicable □ Not applicable
In RMB
Increase/decre Increase/dec Increase/dec
Gross profit ase of rease of rease of
Operating revenue Operating cost
ratio operating operating gross profit
revenue y-o-y cost y-o-y ratio y-o-y
On Industry
Manufacture of
household 12,734,698,313.84 11,126,041,806.09 12.63% 25.61% 23.24% 1.67%
appliances
On Products
Refrigerator,
4,224,670,444.64 3,452,620,652.77 18.27% 18.76% 13.10% 4.09%
freezer
Air-conditioning 6,997,497,159.24 6,383,899,125.62 8.77% 30.78% 30.09% 0.48%
On Area
Domestic 8,842,681,381.11 7,682,608,633.44 13.12% 18.29% 16.85% 1.07%
Foreign 3,892,016,932.73 3,443,433,172.65 11.53% 46.15% 40.38% 3.65%
Under circumstances of adjustment in reporting period for statistic scope of main business data, adjusted main
business based on latest one year’s scope of period-end
□ Applicable √ Not applicable
IV. Analysis of the non-main business
√ Applicable □Not applicable
In RMB
Whether
be
Ratio in
Amount Note sustaina
total profit
ble
(Y/N)
It is mainly caused by the company's long-term equity
Investment income 14,377,940.05 3.88% investment and other non-current financial assets N
investment income
Mainly caused by the loss in the fair value of the
Gains/losses from
-56,428,183.43 -15.22% company's forward foreign exchange contract in the N
change of fair value
current period
It is mainly due to the year-on-year decrease in the
Asset impairment -18,167,335.89 -4.90% provision for inventory depreciation loss of the N
Company in this period
Non-operating income 10,704,019.80 2.89% Mainly due to the company received fines income in N
19
Changhong Meiling Co., Ltd. Semi-Annual Report 2023
this period
It is mainly caused by the scrap loss of non-current
Non-operating expense 3,014,799.22 0.81% N
assets in the current period
Mainly due to the company received government
Other income 32,328,256.66 8.72% N
subsidies
It is mainly caused by the credit impairment loss of the
Credit impairment loss -41,081,589.83 -11.08% N
company's accounts receivable in the current period
V. Analysis of assets and liability
(1) Major changes of assets composition
In RMB
End of current period Year-end of last year
Ratio in Ratio in Ratio
Notes of major changes
Amount total Amount total changes
assets assets
It is mainly due to the
decrease in the proportion
Monetary
7,887,243,778.77 39.83% 6,839,421,779.13 42.22% -2.39% caused by the increase in the
fund
total assets of the Company in
this period
It is mainly due to the
Account increase in the Company's
2,626,925,077.94 13.26% 1,306,871,945.85 8.07% 5.19%
receivable operating income in this
period
Contractual as
31,956,763.36 0.16% 3,530,922.13 0.02% 0.14% No major changes
sets
It is mainly due to the
Inventory 2,300,494,914.54 11.62% 1,710,306,933.71 10.56% 1.06% increase in production of the
company in this period
Investment
51,909,274.28 0.26% 52,898,060.89 0.33% -0.07% No major changes
real estate
Long-term
equity 103,328,795.30 0.52% 100,384,428.50 0.62% -0.10% No major changes
investment
It is mainly due to the
decrease in the proportion
Fix assets 2,192,986,380.31 11.07% 2,229,553,866.96 13.76% -2.69% caused by the increase in the
total assets of the Company in
this period
Construction
62,914,871.29 0.32% 66,522,492.77 0.41% -0.09% No major changes
in progress
Right-of-use
32,936,873.96 0.17% 36,646,135.10 0.23% -0.06% No major changes
assets
Short-term
881,207,127.01 4.45% 674,143,916.67 4.16% 0.29% No major changes
loans
Contractual
355,486,232.62 1.80% 358,755,397.77 2.21% -0.41% No major changes
liability
Long-term
128,000,000.00 0.65% 148,000,000.00 0.91% -0.26% No major changes
loans
20
Changhong Meiling Co., Ltd. Semi-Annual Report 2023
Lease liability 25,339,886.55 0.13% 28,164,287.97 0.17% -0.04% No major changes
(2) Main overseas assets
√ Applicable □ Not applicable
Foreign Whether
Reaso
assets exist
n for Operat
Content of Asset Control measure to ensure the security Income accounted significant
the Location ion
assets size of assets (RMB) for net impairme
format mode
assets of the nt risk
ion
Company (Y/N)
Details of risks control measures have
been disclosed by the Company by way
60% equity
Invest of announcement on appointed media
of US$ 7.8
ment (No. 2011-028, No. 2011-032, No.
Changhong 03 Pakistan Sales
establi 2014-023, No. 2014-026, No. 2016- 2,017,966.96 0.01% N
Ruba
shmen million 027, No. 2016-032, No. 2017-053 and
Trading
t No. 2017-059) on 28 May 2011, 19
Company
April 2014, 25 March 2016 and 10
August 2017
40% equity Details of risks control measures have
of Invest been disclosed by the Company by way
US$ 6.9
Changhong ment Manuf of announcement on appointed media
Ruba establi 761 Pakistan (No. 2011-028, No. 2011-032, No. 2014- -0.45% N
acture
Electric shmen million 023, No. 2014-026, No. 2017-053 and
Company(P t No. 2017-059) on 28 May 2011, 19 April
rivate)Ltd. 2014 and 10 August 2017
100% equity KELAP
of A
Invest Details of risks control measures have
CHANGHO
ment GADIN been disclosed by the Company by way
NG US$ 6 Sales
establi of announcement on appointed media 1,408,645.06 0.39% N
MEILING million G, JKT,
shmen (No. 2016-027 and No. 2016-033) on 25
ELECTRIC Indonesi
t March 2016
INDONESI
a
A. PT
100% equity
of CH- Invest
Details of risks control measures have
Meiling ment US$ 1 Philippin
Sales been disclosed by the Company by way
Internationa establi -699,475.84 0.01% N
million es of announcement on appointed media
l shmen
(No. 2019-083) on 7 December 2019.
(Philippines t
) Inc.
Other notes N/A
(3) Assets and liability measured by fair value
√Applicable □ Not applicable
In RMB
Amount at the Changes of Accu Dev Amount of Amount at end
Items Sales in the Other changes
purchase in the
beginning period fair value mulati aluat period of the period
period
21
Changhong Meiling Co., Ltd. Semi-Annual Report 2023
gains/losses in ve ion
this period chang of
es of with
fair dra
value win
reckon g in
ed the
into peri
equity od
Financial
assets
1.Trading
financial
assets
(derivative 57,660,588.67 15,221,223.22 650,000,000.00 530,000,000.00 192,881,811.89
financial
assets
excluded)
2.Receivabl 1,604,435,165.2
1,446,358,719.88 158,076,445.36
e financing 4
3.Other
non-current
628,549,448.31 628,549,448.31
financial
assets
Subtotal of
2,425,866,425.4
financial 2,132,568,756.86 15,221,223.22 650,000,000.00 530,000,000.00 158,076,445.36
4
assets
Financial
41,961,524.78 71,649,406.65 113,610,931.43
liabilities
Other changes:
Other changes in accounts receivable financing are caused by an increase in notes receivable that target both the
collection of contract cash flow (collection) and the sale (endorsement or discount).
Whether there have major changes on measurement attributes for main assets of the Company in report period or
not
□Yes √ No
(4) Assets right restricted ended as reporting period
Ended as the reporting period, the Company has no major assets been closed down, detain, freeze or pledge and
guarantee. As for other assets have restriction on rights found more in relevant content of “64. Assets with restricted
ownership or use rights” in “VI. Note of consolidate financial statement” carried under Section X. Financial Report
VI. Investment analysis
(1) Overall situation
□Applicable √ Not applicable
22
Changhong Meiling Co., Ltd. Semi-Annual Report 2023
(2) The major equity investment obtained during the reporting period
√Applicable □ Not applicable
23
Changhong Meiling Co., Ltd. Semi-Annual Report 2023
Wheth
Status Current
Type Expe er Date of
Term of as of the investm Index of disclosure (if
Name of Principal Method of Amount of Sharehold Capital of cted involv disclosure
Partners investmen balance ent any
invested business investment investment ing ratio sources prod retur ed in a (if any
t sheet profit )
ucts n lawsui )
date and loss
t(Y/N)
Sichuan Hongyun
Not
General Venture Stock
Sichuan capital
items: Investment
Hongyun has been
Venture Management Co., Not
Venture contribu Not Juchao Website
capital Newly Self- Ltd.,Sichuan appli 2023-01-
Capital 45,000,000.00 30.41% 8 years ted appli -- N （www.cninfo.com.c
(limited to established fund Changhong Electronics cabl 18
Partnership during cable n）N.;2023-004
investment Holding Group Co., e
(Limited the
in unlisted Ltd.,Sichuan
Partnership) reportin
enterprises). Changhong Electric
g period
Co., Ltd.
Total -- -- 45,000,000.00 -- -- -- -- -- -- -- -- -- -- --
(3)The material non-equity investment during the reporting period
□Applicable √ Not applicable
(4)Financial assets investment
1. Securities investment
□ Applicable √ Not applicable
The Company had no securities investment in the reporting period.
2. Derivative investment
24
Changhong Meiling Co., Ltd. Semi-Annual Report 2023
√Applicable □ Not applicable
(1) Derivatives investment for hedging purposes during the reporting period
√ Applicable □ Not applicable
In 10 thousand yuan
Changes in the Amount Ratio of investment amount
Profit and loss of Amount sales in the Investment
cumulative fair purchased in the at period-end in net assets
Type Initial investment fair value change in amount at period-
value included reporting period of the Company at period-
the current period reporting period end
in the equity end
Forward foreign exchange contract 385,815.06 -5,706.20 0 352,403.63 297,359.63 273,522.02 50.23%
Total 385,815.06 -5,706.20 0 352,403.63 297,359.63 273,522.02 50.23%
Specific principle of the accounting
policy and calculation for derivatives
Not applicable
in the Period compared with last period
in aspect of major changes
Description of actual profit and loss
During the reporting period, the Company confirmed the income from derivatives investment of RMB -12.8615 million.
during the reporting period
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 matched with the predicted
Description of hedging effect 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
R Risk analysis:
Risk analysis and controlling measures
1. Market risk: domestic and international economic situation changes may lead to exchange rate fluctuations, forward foreign exchange transactions are under certain market risk.
for derivatives holdings in the Period
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
(including but not limited to market
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
risk, liquidity risk, credit risks,
prediction of consignments, and burdening ability to price variations due to exchange rate fluctuations, then determine the plan of forward foreign exchange contracts, and make
operation risk and law risks etc.)
dynamic management to the business, to ensure reasonable profit level.
25
Changhong Meiling Co., Ltd. Semi-Annual Report 2023
2. Liquidity risk: all foreign exchange transactions are based on a reasonable estimate of the future import and export business, to meet the requirements of the trade authenticity. In
addition, forward foreign exchange transactions are processed with bank credit, will not affect liquidity of company funds.
3. Bank default risk: if cooperative banks collapse within the contract time, the Company will not be able to transact the original foreign exchange contracts with contract price,
which leads the risk of income uncertainty. So the Company chose five state-owned banks, the Chinese-funded banks in shareholding enterprise as Everbright Bank, Industrial
Bank and the foreign-funded banks as UOB, OCBC, BEA etc.to conduct the trading of foreign exchange capital. These banks share a solid strength and management whose failure
and possible losses to the Company is very low.
4. Operational risk: improper operation of the person in charge of forward foreign exchange transactions may cause related risk also. The Company has formulated related
management system which defines the operation process and responsibility to prevent and control risks.
5. The legal risks: unclear terms based in contract signed with banks for related transactions may lead legal risks when forward foreign exchange transactions are processing. The
Company will strengthen legal review, and choose good bank to carry out this kind of business as to risk control.
Invested derivative products have The Company determines fair value in accordance with the Chapter VII “Determination of Fair Value” carried in the Accounting Standards for Business Enterprises No.22 -
changes in market price or fair value in Recognition and Measurement of Financial Instruments. Fair-value is basically obtained according to prices offered by bank and other pricing services. While fair-value of
the Period, as for analysis of the fair
derivatives is mainly obtained according to the balance between prices given by outstanding contracts and forward prices given by contracts signed during the reporting period with
value of derivatives, disclosed specific
applied methods and correlation bank. The differences are identified as trading financial assets and liabilities. During the reporting period, forward foreign exchange contracts and losses of the Company is --
assumption and parameter setting 12.8615 million yuan.
Lawsuit involved (if applicable) Not applicable
Disclosure date for approval from the
Board for investment of derivatives (if March 31,2023
applicable)
Disclosure date for approval from
board of shareholders for investment of April 26,2023
derivatives (if applicable)
Upon inspection, the Company believes that: during the reporting period, the Company carried out its foreign exchange forward deals in strict compliance with the Shenzhen Stock
Exchange Self-Regulatory Guidelines No.1- Standardized Operation of the Listed Companies on main Board , the Articles of Association,Management Measures on Company
Special opinion on derivative Authorization, Management System in relating to Foreign Exchange Forward Deals, and these deals were conducted within the authorization scope under general meeting and
investment and risk control by board meeting. The Company conducts no foreign exchange transactions on the purpose of getting profit only, all of the forward foreign exchange transactions are operates closely
related to the routine operation requirement of the Company and based on normal operating and production, which is relying on specific business operations with purpose of
independent directors avoiding the preventing the risks in exchange rate. The forward foreign exchange transactions of the Company are beneficial to prevent the exchange risks exposed by import and
export business and thus met its requirement for operation development. There was no speculative operation, no break of relevant rules and regulations and relevant business was
conducted under corresponding decision-making procedures. Interests of the Company and entire shareholders, especially minority shareholders, were not prejudiced.
26
Changhong Meiling Co., Ltd. Semi-Annual Report 2023
(5).Application of raised proceeds
□ Applicable √ Not applicable
The Company had no Application of raised proceeds in the reporting period.
VII. 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
VIII. Analysis of main holding company and stock-jointly companies
√ Applicable □Not applicable
(1) Particular about main subsidiaries and stock-jointly companies net profit over 10%
In RMB
27
Changhong Meiling Co., Ltd. Semi-Annual Report 2023
Register
Company name Type Main business Total assets Net assets Operating revenue Operating profit Net profit
capital
Research and development,
Zhongke Meiling Cryogenic Technology manufacturing and sales of
Subsidiary 96,730,934 754,560,626.21 593,012,409.58 144,766,155.52 10,135,504.62 8,290,186.98
Co., Ltd.
ultra-low temperature freezer
Manufacturing of
Jiangxi Meiling Electric Appliance Co.,
Subsidiary 50,000,000 328,184,589.23 143,873,125.99 342,624,762.27 2,351,405.66 2,351,405.66
Ltd. refrigeration and freezer
Manufacturing of
Mianyang Meiling Refrigeration Co., Ltd. Subsidiary 100,000,000 159,522,694.57 119,181,147.86 137,328,929.86 -1,357,020.65 -1,348,944.20
refrigeration and freezer
R&D, manufacturing and
Zhongshan Changhong Electric Co., Ltd. Subsidiary foreign sales of air- 334,000,000 2,462,854,184.48 244,766,429.53 2,169,881,371.60 56,608,036.07 56,165,205.29
conditioning
Hefei Meiling Group Holdings Limited Subsidiary Sales of white goods 80,000,000 1,430,345,893.12 -342,981,811.68 2,719,116,720.36 85,143,362.37 84,078,672.41
R&D, manufacturing and
sales of kitchen and toilet
Changhong Meiling Ridian Technology
Co., Ltd.
Subsidiary
products, small home
83,000,000 261,521,088.78 136,476,648.31 105,403,861.00 -1,951,579.93 -1,894,959.92
appliances and water purifier
R&D and sales of household
Hefei Changhong Meiling Life appliances, kitchen
Appliances Co., Ltd.
Subsidiary
appliances and small home
50,000,000 553,004,901.45 105,950,258.24 775,737,017.98 24,318,692.41 23,764,641.11
appliances
28
Changhong Meiling Co., Ltd. Semi-Annual Report 2023
Note: The basic information and financial information of the main subsidiaries and participating
companies can be found in the notes to the financial statements of this report, including "VIII. Equity in
Other Entities"
(2) Subsidiary obtained and disposed in the period
□Applicable √ Not applicable
(3) Description of the holding company and stock-jointly companies
□Applicable √ Not applicable
IX. Structured entity controlled by the Company
□Applicable √ Not applicable
X. Risks and countermeasures
(1) Risks and countermeasures
Although the downward pressure on the domestic economy has been eased, the scissors gap between CPI and
PPI still reveals the current situation of insufficient market demand, insufficient consumer willingness and low
prices. In the second half of 2023, the Company will face risks such as intensified industry competition, exchange
rate fluctuation, price fluctuation risk of bulk materials, trade friction and geopolitical influence.
1. Risk of intensified industry competition
The household appliance industry market in which the Company is located has changed from incremental
market competition to stock market competition. The upgrading of household appliance product structure has
become a new growth point, and the demand for upgrading has become dominant. At the same time, under the
background of the overall slowdown of the industry scale, the industry competition has become increasingly fierce.
2. Risk of exchange rate fluctuation
Affected by the international situation, the exchange rate fluctuated greatly in the first half of the year. The
Company will pay close attention to the exchange rate changes in order to operate steadily, control risks and 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, plastics and chemical materials,
etc. 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.
29
Changhong Meiling Co., Ltd. Semi-Annual Report 2023
In view of the above risks, combined with the industry situation in the second half of the year and the shortage
in the first half of the year, in the second half of 2023, the Company will seize the opportunity, turn crisis into
opportunity, and implement the business plan from the following aspects in part (II).
(2)Operation plan for second half of the year
Under the guidance of strategic planning, in the second half of the year, the Company will continue to focus
on "one goal", closely follow the "three main lines", implement the "four management systems" and unswervingly
deepen marketing transformation into business ideas, and strive for scale growth to exceed the industry average
under the premise of continuous improvement of profit and loss; Around the trend and differentiation, it will create
products with unique value, determine the competitors, formulate competitive strategies around products, regions
and channels, continuously promote the improvement of capital efficiency, channel efficiency, product efficiency
and management efficiency. The main work is as follows:
1. Refrigerator industry
The Company firmly promotes value orientation and comprehensively improves efficiency at home. It
accelerates the marketing transformation and business model optimization, and based on the data support system, it
continuously optimizes the delivery cycle, increases the proportion of direct delivery of products, continuously
shortens the turnover days of commercial inventory, and improves the efficiency of funds. It insists on scientific
and technological innovation and customer orientation, has insight into consumers' needs and technological
development trends, constructs a three-layer R&D system, implements the product manager responsibility system,
and forms the product competitive advantage of "excellent products + faddish products" based on the refined
management of product structure. On the market side, it firmly promotes channel transformation, traditional channel
transformation, chain channel upgrading and incremental channel expansion, and maintains the improvement of
profitability; It also continues to benchmark and strengthen the continuous improvement of internal efficiency.
In overseas markets, it adheres to the market strategy of "raising unit price, strengthening promotion, improving
structure and enhancing coordination", focuses on large-volume products with high value and high potential,
strengthens cooperation with OEM customers with brand thinking, increases customer loyalty through the
Company's product strength, gives full play to internal and external coordination advantages, focuses on the
Company's medium- and long-term strategic market and key markets and key customers whose scale has recovered
rapidly after the decline in sea freight, and explores new market opportunities. At the same time, it strengthens the
management of production, marketing and storage internally to improve the efficiency of funds, increases team and
product investment in brand business, and continues to promote the construction of overseas independent brands.
2. Air conditioning industry
In the domestic market, it focuses on products, regions and customers, activates the team, strengthens the
management and control of the value chain, and focuses on "channel expansion and product upgrade". On the
channel side, it solidifies the basic channels, develops blank areas, expands cooperation areas, strengthens the efforts
30
Changhong Meiling Co., Ltd. Semi-Annual Report 2023
in TOP channels and O2O sinking channels, and continues to strengthen the market construction and share
promotion of Sichuan-Chongqing base areas; On the product side, it continues to innovate, optimizes the air supply
mode, improves the appearance technology, enhances the product quality, and provides users with more comfortable,
energy-saving and healthy air-conditioning products on the basis of continuously promoting "all-dust-free" and
"living and dining cabinet" products. It also expands the scale of multi-connected, modular machines and low-
temperature heat pump products, and promotes small heat pumps. At the same time, it makes brand promotion plans,
plans brand TVC, invests in high-speed rail naming, strengthens new media cooperation, maintains online traffic
and popularity, and strengthens brand promotion and communication.
In terms of overseas market, on the marketing side, it balances the market area and improves the customer
structure; On the R&D side, it upgrades product iterations and improves team capabilities; On the manufacturing
side, it realizes fine management of manufacturing and lean operation of production and marketing; On the
purchasing side, it continues to learn from benchmarking and improve supply capacity; On the operational side, it
accelerates system construction and provides organizational guarantee; On the financial side, it stabilizes the risk
control system and supports business development; In terms of informatization, it understands business logic and
improves process efficiency.
3. Washing machine industry
In terms of washing machine products, in the second half of the year, it will focus on waist products drum
"hand-washing-like" and pulsator "Hercules", enrich the product formation and upgrade the product structure
around the outstanding features of washing machines such as "clean", "thin" and "intelligent", and through the
appearance upgrade, function upgrade, cleaning upgrade and other optimization, it will comprehensively enhance
product competitiveness. In terms of market, in domestic sales, it continues to promote the "Anhui Take-off" plan
consolidates the construction of basic channels, and ensures the steady growth of domestic sales. In export, it realizes
the ice washing cooperation of the whole product line, focuses on key areas and big customers, and takes
differentiated products as a breakthrough to achieve a rapid breakthrough in scale.
4. Kitchen, bathroom and household appliance industry
It continues to consolidate the core product market and further enhances the brand influence. For the product
line of tea, it focuses on the cost reduction and function enhancement of self-made products, constantly strengthens
the core competitiveness, and fully promotes the improvement of business quality; For the product line of cleaning
appliances, it focuses on strengthening the functions of the project team and promoting the rapid development of
the project; For the heating product line, it continues to take the marketing strategy as the guide, speeds up the
development and marketing of gas core technologies, and quickly realizes the marketization of products. It
continuously integrates product resources, improves operating efficiency, and realizes the "troika" marching hand
in hand through measures such as R&D convergence and marketing strategy adjustment.
5. Biomedical
31
Changhong Meiling Co., Ltd. Semi-Annual Report 2023
It unswervingly implements the development strategy of "diversification based on biomedical field", focuses
on the field of life sciences, deepens the construction of customer-oriented domestic and international channel
system, deeply explores the needs and potentials of users around the comprehensive user strategy, continuously
innovates products and technologies, improves service level, and expands user coverage and product market share.
The Company always adheres to the business philosophy of "technology-founded, product-based, market-oriented
and customer-centered", and continues to operate steadily around the business principles of deepening channels,
innovating products, optimizing quality and improving efficiency.
32
Changhong Meiling Co., Ltd. Semi-Annual Report 2023
Section IV Corporate Governance
I. AGM(Annual General Meeting) and extraordinary general meeting
(1)AGM held in the period
Participatio
Meeting Type n ratio for Meeting date Disclosure date Resolution
investors
The General Meeting have approved 16 proposals in
total, including “Report on Works of BOD for year of
2022”, “Report on Works of BOS for year of 2022”,
“Annual Report of 2022 and Its Summary”, “Financial
Annual Statement Report for year of 2022”, “ Plans of Profit
2022 AGM General 39.8034% April 25,2023 April 26,2023 Distribution for year of 2022”, “Renewal of the Audit
Meeting Institution on Financial Report and Internal Control for
year of 2023 and Payment of Remuneration”, found
more in the “Resolution of 2022 Annual General
Meeting” (No.: 2023-033) released on Juchao Website
www.cninfo.com.cn
The General Meeting has approved Two proposals-
First “Change of the Accounting Policy of 2023”and
Extraord
Extraordinar “Proposal on Amending Part of the Articles of
inary
y General 36.9723% May 10,2023 May 11,2023 Association of the Company ”, found more in the
General
Meeting of “Resolution of 2022 First extraordinary General
Meeting
2022 Meeting of 2023” (No.: 2023-033) released on Juchao
Website www.cninfo.com.cn
(2) Request for extraordinary general meeting by preferred stockholders with rights to vote
□Applicable √ Not applicable
II. Changes of directors, supervisors and senior executives
√Applicable □ Not applicable
Name Title types date reason
Liu executive Due to personal reasons, he applied to
Hongwe vice Dimission May 24, 2023 resign from his position as Executive Vice
i president President of the company.
III. Profit distribution plan and capitalizing of common reserves in the period
□Applicable √ Not applicable
There are no cash dividend, bonus and capitalizing of common reserves carried out in the semi-annual
IV. Implementation of the company’s stock incentive plan, employee stock ownership plan or other
employee incentives
□Applicable √ Not applicable
33
Changhong Meiling Co., Ltd. Semi-Annual Report 2023
The Company has no implementation of the company’s stock incentive plan, employee stock ownership plan or
other employee incentives in the period.
Section V Environmental and Social Responsibility
I. Major environmental
The listed Company and its subsidiary whether belongs to the key sewage units released from environmental
protection department
√Yes □No
The Company and subordinate subsidiaries Changhong Air-conditioning are not belongs to the key emission units
announced by the authority of environmental protection.
1. Policies and industry standards related to environmental protection
In their daily production and operation, the Company and its subsidiaries strictly abide by the requirements in
the Environmental Protection Law of the People's Republic of China, Environmental Impact Assessment Law of
the People's Republic of China, Law on Prevention and Control of Water Pollution of the People's Republic of China,
Law on the Prevention and Control of Atmospheric Pollution of the People's Republic of China, Law on Prevention
and Control of Environmental Pollution by Solid Waste of the People's Republic of China, Regulations on the
Administration of Construction Project Environmental Protection, Environmental Protection Regulations of Anhui
Province, Regulations on Preventionand Control of Environmental Pollution by Solid Waste in Sichuan Province,
and other relevant laws and regulations.
During the reporting period, Changhong Air Conditioning, a subsidiary of the Company, carried out self-
monitoring according to regulations, in which for VOCs, refer to Table 3 of Emission Standard for Atmospheric
Volatile Organic Compounds from Stationary Pollution Sources in Sichuan Province DB51/2377-2017; For nitrogen
oxides, refer to the secondary standard in Table 2 of Comprehensive Emission Standard for Air Pollutants
(GB16297-1996); For sulfur-containing compounds, refer to the standard in Table 2 of Comprehensive Emission
Standard for Air Pollutants (GB16297-1996). For dust, refer to the secondary standard in Table 2 of Comprehensive
Emission Standard for Air Pollutants (GB16297-1996).
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
34
Changhong Meiling Co., Ltd. Semi-Annual Report 2023
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
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.
The Company and subordinate subsidiaries Changhong Air-conditioning ,The sewage discharge permit was
applied on March 31, 2020 and is valid until March 30, 2023.
35
Changhong Meiling Co., Ltd. Semi-Annual Report 2023
3.Industrial emission standard and specific conditions of pollutant emissions involved in production and operation activities
Main
pollutant number Pollutants Total Discharge
Main pollutant and Distribution Total
Company or subsidiary and Way of of concentration discharge discharge beyond
specific pollutant of discharge discharge
name specific discharge discharge of discharge standards volume the
type outlets volume
pollutant outlets enacted certified standards
name
Standard in Sichuan
Table 3 of Changhong
Emission Air
Standard for Conditioning
Two outlets Atmospheric Co., Ltd. has
in Workshop Volatile completed the
J05 and one
Organic pollutant
outlet in
Compounds discharge
Workshop
from Stationary registration of
J07, No.128 Pollution
Volatile organic Organized the national Not
VOCs 3 Sanjiang ≤29.9mg/m 3731.44kg
compounds emission Sources in pollutant exceeded
Avenue,
Sichuan discharge
Economic
Province permit
Development (DB51/2377- management
Zone,
2017), that is information
Mianyang
Sichuan Changhong Air- the volatile platform and
City
conditioning Co., Ltd. organic obtained the
compounds registration
shall be ＜60 receipt
mg/m3. according to
Two outlets Secondary the
in Workshop standard in requirements
J05, No.128 Table 2 of of relevant
Sanjiang Comprehensive laws and
Avenue, Emission regulations,
Organized Economic Standard for such as Not
Oxynitride Oxynitride 2 ＜3mg/m 624.63kg Measures for
emission Development Air Pollutants exceeded
Zone, (GB16297- the
Mianyang 1996), that is, Administration
City (the the of Pollutant
same outlet concentration Discharge
as J05VOC). of nitrogen Permits (trial),
36
Changhong Meiling Co., Ltd. Semi-Annual Report 2023
oxides shall be Catalogue of
＜240 mg/m3 Classified
Two outlets Management
in Workshop Secondary of Pollutant
J05 and one standard in Discharge
outlet in Table 2 of Permit of
Workshop Comprehensive Stationary
J07, No.128 Emission Pollution
Sulphur Organized Standard for Sources (2019 Not
Sulfocompound 2 Sanjiang ≤10mg/m 703.17kg
dioxide emission Edition), etc. exceeded
Avenue, Air Pollutants
Economic (GB16297- There was no
Development 1996),that is requirement
Zone, SO2＜ for the total
Mianyang 550mg/m amount of
City pollutant
Two outlets discharge of
in Workshop Secondary the Company
J05 and one standard in in the
outlet in Table 2 of pollutant
Workshop Comprehensive discharge
J07, No.128 Emission registration.
Organized Not
Dust Particulate 4 Sanjiang ＜20mg/m Standard for 535.36kg
emission exceeded
matter Avenue, Air Pollutants
Economic (GB16297-that
Development is Particulate
Zone, matter＜
Mianyang 120mg/m
City
37
Changhong Meiling Co., Ltd. Semi-Annual Report 2023
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.
(1) Waste gas
Changhong Air Conditioning has established a refined waste gas treatment system, and 4 sets of waste gas
treatment facilities for wave-welding waste gas, and adopted the treatment process of "dry interception filter + UV
photolysis purifier", to achieve organized discharge up to the standard through the 20m-high exhaust funnel at the
top of the workshop.
It has established 3 sets of waste gas treatment facilities for the welding waste gas of the two devices, and
adopted the treatment process of "pulse filter cartridge dust removal equipment + UV composite photocatalysis", to
achieve organized discharge up to the standard through the 18m-high exhaust funnel at the top of the workshop;
It has established 2 sets of waste gas treatment facilities for the three-proof coating waste gas, and adopted the
treatment process of "dry interception filter+ activated carbon adsorption", to achieve organized discharge up the
standard through the 20m-high exhaust funnel at the top of the workshop;
It has established 4 sets of waste gas treatment facilities for degreasing waste gas, and adopted the treatment
process of "spray tower + drying defogging box + UV composite photocatalysis + activated carbon adsorption", to
achieve the organized discharge up to the standard through the 18m-high exhaust funnel at the top of the workshop.
(2) Hazardous waste
Changhong Air Conditioning has built special storage facilities for hazardous wastes, with floor made of
nonflammable epoxy mortar, anti-leakage ditch and collection tank, which can effectively prevent the leakage risk
of hazardous wastes and meet the current storage requirements of hazardous wastes. At the same time, it regularly
entrusts all kinds of hazardous wastes to units with qualifications for hazardous waste disposal for standardized and
centralized harmless disposal.
5. 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.
38
Changhong Meiling Co., Ltd. Semi-Annual Report 2023
6. 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.
7. 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.
8. 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
During the reporting period, the Company and its subsidiaries were not subject to administrative punishment
for environmental problems.
9. 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.
10.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
39
Changhong Meiling Co., Ltd. Semi-Annual Report 2023
transformation for high-consumption and low-efficiency air compressors, upgrading and transformation for air
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. In addition, the Company also pays attention to the use of recyclable packaging and transshipment
materials to reduce carbon emissions in the procurement process, and is actively promoting the recycling of
materials such as pallets to reduce carbon emissions in the whole production process.
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 continues to promote win-win development with its stakeholders, earnestly fulfills its social
responsibilities, pays close attention to the voices of all stakeholders, and actively gives back and improves, and is
determined to become an enterprise that is respected by the society and loved by its employees. While achieving
sound development, it pays attention to protecting the interests of its shareholders, employees, suppliers, customers
and consumers, and actively engages in public welfare undertakings, thus promoting the harmonious development
of the Company and the whole society.
1. Protection of the rights and interests of shareholders and creditors
The company strictly follows the provisions and requirements formulated by the Articles of Association and
the Rules of Procedure for the General Meeting of Shareholders, regulates the convening, holding and voting
procedures of the general meeting of shareholders, equally treats all shareholders, especially small and medium
shareholders equally, and ensures that all shareholders enjoy equal status and fully exercise their own rights. Under
the premise of strictly implementing the Administrative Measures for Information Disclosure of Listed Companies,
40
Changhong Meiling Co., Ltd. Semi-Annual Report 2023
the company actively communicates and exchanges information with investors on the company's operations and
management, financial status, etc. through annual performance briefings, Anhui service week for investors by SZSE,
investor telephone hotline, e-mails, and the investor relations interactive platform of the Shenzhen Stock Exchange,
and discloses information to all investors in a truthful, accurate, complete, concise and clear, and easy-to-understand
manner; further, the company attaches great importance to the shareholder return mechanism, According to the
Return Plan for Shareholders of Changhong Meiling Co., Ltd. for the Next Three Years (2021 -2023), combined
with the Company's own operating conditions and other factors, during the reporting period, the Company
implemented the profit distribution plan for 2022, paid dividends in cash and gave shareholders a reasonable return
on investment.
In addition, in order to establish a variety of shareholder return mechanisms and thank investors for their long-
term concern and support for the Company, during the reporting period, the Company held the "Meiling 40th
Anniversary Shareholder Thanksgiving Festival" to give back to all shareholders with sincerity.
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
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
41
Changhong Meiling Co., Ltd. Semi-Annual Report 2023
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, The Party Committee of the Company actively participated in the third party
building project of micro-public welfare venture capital in the Jinxiu Community Social Organization Incubation
Park in Hefei Economic Development Zone; Adhering to the mission of "serving the country through industry and
rejuvenating by us", Zhongke Meiling, a subsidiary of the Company, established the "Friends of Tsinghua - Meiling
Biomedical Scholarship" to promote the independent innovation and high-quality development of the medical
devices and scientific research instrument and equipment industry in China.
42
Changhong Meiling Co., Ltd. Semi-Annual Report 2023
Section VI Important Events
I. Commitments that the actual controller, shareholders, related party, the buyer and the company have
fulfilled during the reporting period and have not yet fulfilled by the end of reporting period
□ Applicable √ Not applicable
The Company has no commitments that the actual controller, shareholders, related party, the buyer and the company
have fulfilled during the reporting period and have not yet fulfilled by the end of reporting period
II. Non-operational fund occupation from controlling shareholders and its related party
□ Applicable √ Not applicable
No non-operational fund occupation from controlling shareholders and its related party in period.
III. External guarantee out of the regulations
□ Applicable √ Not applicable
No external guarantee out of the regulations occurred in the period.
IV. Appointment and non-reappointment (dismissal) of CPA
Whether the semi-annual financial report had been audited
□Yes √ No
The semi-annual report was not audited
V. Explanation on “Qualified Opinion” from CPA by the Board and Supervisory Committee
□ Applicable √ Not applicable
VI. Explanation from the Board for “Qualified Opinion” of last year’s
□ Applicable √ Not applicable
VII. Bankruptcy reorganization
□ Applicable √ Not applicable
No bankruptcy reorganization for the Company in reporting period
VIII. Lawsuit
(i) Major Litigation and Arbitration Matters
43
Changhong Meiling Co., Ltd. Semi-Annual Report 2023
√Applicable □Not applicable
Wheth
er to Implementatio
Litigation(arbi
Amount form Litigation( n of
tration)trial Disclosure Disclosure
Basic situation of litigation(arbitration) involved (Ten estima arbitration litigation(arbit
results and date index
thousand yuan) ted )progress ration)judgme
impact
liabilit nts
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, Under Juchao
etc., Tianjin Pengsheng still owed Zhiyijia a trial of No trial result No trial result December (www.cninf
9,617.43 No
payment of RMB 96,174,308.42. Based on first yet yet 24,2022 o.com.cn)(2
this, Zhiyijia, the plaintiff brought a lawsuit instance 022-101)
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 provisions of relevant laws and
regulations, Zhiyijia claims that the
aforementioned defendants should be jointly
and severally liable for the above debts, and
requests the court to order Tianjin
Pengsheng to immediately pay the plaintiff
RMB 96,174,308.42 and the corresponding
liquidated damages for overdue payment,
and bear the related litigation costs and
property preservation guarantee fees.
Notes: 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
44
Changhong Meiling Co., Ltd. Semi-Annual Report 2023
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.
(ii) Other litigation matters
□ Applicable √ Not applicable
IX. Penalty and rectification
□ Applicable √ Not applicable
X. Integrity of the company and its controlling shareholders and actual controllers
□ Applicable √ Not applicable
XI. Major related party transaction
(i) Related party transaction with routine operation concerned
√ Applicable □ Not applicable
45
Changhong Meiling Co., Ltd. Semi-Annual Report 2023
Whether
Related Proporti
Related Trading limit over the Clearing Available
Type of transaction on in
Seria Content of related Pricing transaction approved (in approve form for similar
Related party Relationship related price (in 10 similar Date of disclosure Index of disclosure
l transaction principle amount (in 10 10 thousand d limited related market
transaction thousand transacti
thousand Yuan) Yuan) or Not transaction price
Yuan) ons (%)
(Y/N)
Sichuan Pressure regulator, Juchao Website
Spot
Controlling Commodity integrated circuit,
Changhong Marketin exchange, December 7, 2022, （www.cninfo.com.cn）
1 transistors, steel 21,647.30 21,647.30 2.00% 65,000.00 N -
Bank December 23,2021 N.:2022-087,2022-
plate, plastic parts, g price
shareholder purchased
Electric Co., Ltd. acceptance 088,2022-089,2022-100
etc
Other
enterprise
control
Changhong Huayi under the Juchao Website
Commodity Compressor ， air
Compressor Co., same Marketin Bank December 7, 2022, （www.cninfo.com.cn）
2 25,980.62 25,980.62 2.40% 54,000.00 N -
purchased compression g price acceptance December 23,2022 N.;2022-087,2022-
Ltd. controlling 088,2022-089,2022-100
shareholder
and ultimate
controller
Other
enterprise
control
Sichuan
under the Components, Spot Juchao Website
Changhong Mold Commodity
same plastic parts and Marketin exchange, December 7, 2022, （www.cninfo.com.cn）
3 47,227.00 47,227.00 4.37% 100,000.00 N -
Plastic Tech. Co., purchased lining accessories g price Bank December 23,2022 N.;2022-087,2022-
controlling etc. acceptance 088,2022-089,2022-100
Ltd.
shareholder
and ultimate
controller
46
Changhong Meiling Co., Ltd. Semi-Annual Report 2023
Other
enterprise
control
Sichuan Juchao Website
under the Base plate
Changhong Jijia same Commodity Marketin Bank December 7, 2022, （www.cninfo.com.cn）
4 assembly, black 29,862.39 29,862.39 2.76% 65,000.00 N -
purchased plate, bracket etc. g price acceptance December 23,2022 N.;2022-087,2022-
Fine Co., Ltd. controlling 088,2022-089,2022-100
shareholder
and ultimate
controller
Other
enterprise
Sichuan control
Juchao Website
Changhong under the Packing boxes,
Commodity Marketin N Bank December 7, 2022, （www.cninfo.com.cn）
5 same foam, fixed 6,932.79 6,932.79 0.64% 20,000.00 -
Package Printing purchased support block etc. g price acceptance December 23,2022 N.;2022-087,2022-
controlling 088,2022-089,2022-100
Co., Ltd. shareholder
and ultimate
controller
Other
Sichuan enterprise
control Printed board
Changhong Juchao Website
under the machine insertion
Precision Commodity Marketin N Bank December 7, 2022, （www.cninfo.com.cn）
6 same 1,776.19 1,776.19 0.16% 4,500.00 -
purchased machine paste g price acceptance December 23,2022 N.;2022-087,2022-
Electronics Tech. controlling 088,2022-089,2022-100
shareholder assembly
Co., Ltd.
and ultimate
controller
Other
enterprise
control Juchao Website
081 Electronics under the Commodity Marketin N Cash December 7, 2022, （www.cninfo.com.cn）
7 power transformer 5.30 5.30 0.00% 8,000.00 -
Group Co., Ltd. same purchased g price settlement December 23,2022 N.;2022-087,2022-
controlling 088,2022-089,2022-100
shareholder
and ultimate
47
Changhong Meiling Co., Ltd. Semi-Annual Report 2023
controller
Other
enterprise
Guangdong control
Spot Juchao Website
Changhong under the
Commodity Foam and carton Marketin exchange, December 7, 2022, （www.cninfo.com.cn）
8 same 400.10 400.10 0.04% 8,000.00 N -
Electronics Co., purchased g price Bank December 23,2022 N.;2022-087,2022-
controlling acceptance 088,2022-089,2022-100
Ltd. shareholder
and ultimate
controller
Other
enterprise
Sichuan control
Changhong Juchao Website
under the
Intelligence Commodity Outside cover Marketin N Cash December 7, 2022, （www.cninfo.com.cn）
9 same 0.05 0.05 0.00% 5,000.00 -
Manufacturing purchased parts g price settlement December 23,2022 N.;2022-087,2022-
Technology Co., controlling 088,2022-089,2022-100
Ltd. shareholder
and ultimate
controller
Other
enterprise
control
Electric Juchao Website
Sichuan Hongwei under the
Commodity toothbrush, body Marketin N Cash December 7, 2022, （www.cninfo.com.cn）
10 Technology Co., same 4.06 4.06 0.00% 8,000.00
purchased fat weighing, g price settlement December 23,2022 N.;2022-087,2022-
Ltd controlling smart watches, etc 088,2022-089,2022-100
shareholder
and ultimate
controller
Other
Hefei Changhong enterprise Spot Juchao Website
Industrial Co., control Commodity Inverter integrated Marketin N exchange, - December 7, 2022, （www.cninfo.com.cn）
11 385.14 385.14 0.04% 8,000.00
under the purchased board g price Bank December 23,2022 N.;2022-087,2022-
Ltd. acceptance 088,2022-089,2022-100
same
controlling
48
Changhong Meiling Co., Ltd. Semi-Annual Report 2023
shareholder
and ultimate
controller
Other
Sichuan enterprise
control
Changhong New Juchao Website
under the
Energy Commodity Batteries Marketin N Cash December 7, 2022, （www.cninfo.com.cn）
12 same 2.40 2.40 0.00% 5,000.00 -
purchased g price settlement December 23,2022 N.;2022-087,2022-
Technology Co., controlling 088,2022-089,2022-100
Ltd. shareholder
and ultimate
controller
Other
enterprise
Sichuan Zhiyijia control
Juchao Website
Network under the
Commodity Air conditioner, Marketin N Cash December 7, 2022, （www.cninfo.com.cn）
13 same 461.50 461.50 0.04% 8,000.00 -
Technology Co., purchased LCD TV g price settlement December 23,2022 N.;2022-087,2022-
controlling 088,2022-089,2022-100
Ltd. shareholder
and ultimate
controller
Other
enterprise
control
Sichuan Juchao Website
under the
Changhong Commodity Marketin N Cash December 7, 2022, （www.cninfo.com.cn）
14. same Bushing 0.18 0.18 0.00% 8,000.00 -
purchased g price settlement December 23,2022 N.;2022-087,2022-
Source Co., Ltd. controlling 088,2022-089,2022-100
shareholder
and ultimate
controller
Other Juchao Website
Changhong Commodity Television Marketin
15
enterprise
1,538.32 1,538.32 0.14% 12,000.00 N Cash -
December 7, 2022, （www.cninfo.com.cn）
International control purchased g price settlement December 23,2022 N.;2022-087,2022-
under the 088,2022-089,2022-100
49
Changhong Meiling Co., Ltd. Semi-Annual Report 2023
Holdings (Hong same
Kong) Co., Ltd. controlling
shareholder
and ultimate
controller
Other
enterprise
Sichuan control
Juchao Website
Changhong under the
Commodity Marketin N Bank December 7, 2022, （www.cninfo.com.cn）
16 Device same printed board 559.39 559.39 0.05% 8,000.00 -
purchased g price acceptance December 23,2022 N.;2022-087,2022-
Technology Co., controlling 088,2022-089,2022-100
Ltd. shareholder
and ultimate
controller
Other
enterprise
Sichuan Remote controls,
control
switching Spot Juchao Website
Changhong under the
Commodity transformers, Marketin N exchange, - December 7, 2022, （www.cninfo.com.cn）
17 same 2,034.05 2,034.05 0.19% 3,000.00
Electronic purchased printed boards, g price Bank December 23,2022 N.;2022-087,2022-
controlling 088,2022-089,2022-100
Products Co., Ltd. shareholder electronic acceptance
components, etc.
and ultimate
controller
Other
enterprise
control
Juchao Website
Sichuan Jiahong under the
Commodity Marketin N Cash December 7, 2022, （www.cninfo.com.cn）
18 Industrial Co., same Catering services 0.33 0.33 0.00% 5,000.00 -
purchased g price settlement December 23,2022 N.;2022-087,2022-
Ltd controlling 088,2022-089,2022-100
shareholder
and ultimate
controller
Juchao Website
Sichuan Ailian
Other Commodity Internet access Marketin N Spot December 7, 2022,
19 868.04 868.04 0.08% 5,000.00 -
Science & enterprise purchased modules, g price exchange, December 23,2022 （www.cninfo.com.cn）
electronic N.;2022-087,2022-
50
Changhong Meiling Co., Ltd. Semi-Annual Report 2023
Technology Co., control components, etc Bank 088,2022-089,2022-100
Ltd. under the acceptance
same
controlling
shareholder
and ultimate
controller
Other
enterprise
Sichuan Aichuang control
Juchao Website
Science & under the
Commodity Inverter integrated Marketin N Bank December 7, 2022, （www.cninfo.com.cn）
20 same 7,075.57 7,075.57 0.65% 20,000.00 -
Technology Co., purchased board g price acceptance December 23,2022 N.;2022-087,2022-
controlling 088,2022-089,2022-100
Ltd. shareholder
and ultimate
controller
Other
enterprise
control
Sichuan Service Juchao Website
under the
Exp. Appliance Commodity Marketin N Cash December 7, 2022, （www.cninfo.com.cn）
21 same Filter element, etc 0.18 0.18 0.00% 8,000.00 -
Service Chain purchased g price settlement December 23,2022 N.;2022-087,2022-
controlling
Co., Ltd. 088,2022-089,2022-100
shareholder
and ultimate
controller
Other
enterprise
control
Inverter integrated Juchao Website
Sichuan Aoku under the
Commodity board ， Marketin N Cash December 7, 2022, （www.cninfo.com.cn）
22 Technology Co., same 1,155.21 1,155.21 0.11% 5,000.00 -
purchased Electronic control g price settlement December 23,2022 N.;2022-087,2022-
Ltd. controlling 088,2022-089,2022-100
components
shareholder
and ultimate
controller
51
Changhong Meiling Co., Ltd. Semi-Annual Report 2023
Sichuan
Changhong Controlling Juchao Website
Shuttle
Electronics shareholder Accept labor Marketin N Cash December 7, 2022, （www.cninfo.com.cn）
23 transportation fee, 45.52 45.52 0.06% 5,000.00 -
and ultimate service g price settlement December 23,2022 N.;2022-087,2022-
Holding Group training fee 088,2022-089,2022-100
controller
Co., Ltd.
Software usage
Sichuan Juchao Website
fee, information
Changhong Controlling Accept labor Marketin N Cash December 7, 2022, （www.cninfo.com.cn）
24 consultation fee, 201.21 201.21 0.25% 10,000.00 -
shareholder service g price settlement December 23,2022 N.;2022-087,2022-
Electric Co., Ltd. inspection and 088,2022-089,2022-100
certification fee
Other
enterprise
Sichuan control Transportation
costs, storage and Juchao Website
Changhong under the
Accept labor handling charges, Marketin N Cash December 7, 2022, （www.cninfo.com.cn）
25 same 36,849.78 36,849.78 45.07% 82,000.00 -
Minsheng service freight and g price settlement December 23,2022 N.;2022-087,2022-
controlling miscellaneous 088,2022-089,2022-100
Logistics Co., Ltd. shareholder
charges etc.
and ultimate
controller
Other
enterprise
Sichuan control
commission Juchao Website
Changhong Mold under the
Accept labor processing fee， Marketin N Bank December 7, 2022, （www.cninfo.com.cn）
26 same 1,917.82 1,917.82 2.35% 10,000.00 -
Plastic Tech. Co., service Change the mold g price acceptance December 23,2022 N.;2022-087,2022-
controlling 088,2022-089,2022-100
Ltd. service
shareholder
and ultimate
controller
Other Three packages,
Juchao Website
Sichuan Service enterprise equipment repair,
Accept labor Marketin N Cash December 7, 2022, （www.cninfo.com.cn）
27 control miscellaneous 18,074.72 18,074.72 22.11% 45,000.00 -
Exp. Appliance service g price settlement December 23,2022 N.;2022-087,2022-
under the fees, installation 088,2022-089,2022-100
same fee etc.
52
Changhong Meiling Co., Ltd. Semi-Annual Report 2023
Service Chain controlling
Co., Ltd. shareholder
and ultimate
controller
Other
enterprise Software usage
control
fee, service Juchao Website
Sichuan Hongxin under the
Accept labor supporting fee and Marketin N Cash December 7, 2022, （www.cninfo.com.cn）
28 same 76.32 76.32 0.09% 10,000.00 -
Software Co., Ltd. service g price settlement December 23,2022 N.;2022-087,2022-
controlling information 088,2022-089,2022-100
shareholder service fee
and ultimate
controller
Other
enterprise
Guangdong control
Juchao Website
Changhong under the Service support
Accept labor Marketin N Cash December 7, 2022, （www.cninfo.com.cn）
29 same fee, network 36.12 36.12 0.04% 10,000.00 -
Electronics Co., service g price settlement December 23,2022 N.;2022-087,2022-
controlling service fee etc.
088,2022-089,2022-100
Ltd. shareholder
and ultimate
controller
Other
enterprise
control
Sichuan Jiahong Juchao Website
under the Meals, property
Industrial Co., same Accept labor Marketin N Cash December 7, 2022, （www.cninfo.com.cn）
30 management fees 418.14 418.14 0.51% 5,000.00 -
service g price settlement December 23,2022 N.;2022-087,2022-
Ltd. controlling etc.
088,2022-089,2022-100
shareholder
and ultimate
controller
Juchao Website
Sichuan Other Meetings fee,
Accept labor Marketin N Cash December 7, 2022, （www.cninfo.com.cn）
31 enterprise accommodation， 6.42 6.42 0.01% 5,000.00 -
Changhong service g price settlement December 23,2022 N.;2022-087,2022-
control Travel service
088,2022-089,2022-100
53
Changhong Meiling Co., Ltd. Semi-Annual Report 2023
International under the
Hotel Co., Ltd. same
controlling
shareholder
and ultimate
controller
Other
enterprise
Sichuan control
Juchao Website
Changhong under the property
Accept labor Marketin N Cash December 7, 2022, （www.cninfo.com.cn）
32 same 7.34 7.34 0.01% 5,000.00 -
Property Services service management fees g price settlement December 23,2022 N.;2022-087,2022-
controlling 088,2022-089,2022-100
Co., Ltd. shareholder
and ultimate
controller
Other
enterprise
Sichuan Zhiyijia control
Juchao Website
Network under the Design service fee
Accept labor Marketin N Cash December 7, 2022, （www.cninfo.com.cn）
33 same and platform 6.94 6.94 0.01% 10,000.00 -
Technology Co., service g price settlement December 23,2022 N.;2022-087,2022-
controlling usage fee 088,2022-089,2022-100
Ltd. shareholder
and ultimate
controller
Other
Sichuan
enterprise
Changhong control
Juchao Website
Intelligent under the
Accept labor Green product Marketin N Cash December 7, 2022, （www.cninfo.com.cn）
34 same 9.43 9.43 0.01% 5,000.00 -
Manufacturing service declaration service g price settlement December 23,2022 N.;2022-087,2022-
controlling 088,2022-089,2022-100
Technology Co., shareholder
Ltd. and ultimate
controller
35 Sichuan Other Accept labor commission Marketin 158.54 158.54 0.19% 10,000.00 N Cash - December 7, 2022, Juchao Website
54
Changhong Meiling Co., Ltd. Semi-Annual Report 2023
Changhong Jijia enterprise service processing fee g price settlement December 23,2022 （www.cninfo.com.cn）
Fine Co., Ltd. control N.;2022-087,2022-
under the 088,2022-089,2022-100
same
controlling
shareholder
and ultimate
controller
Other
enterprise
Sichuan
Changhong control
Juchao Website
Gerun under the
Accept labor Environmental Marketin N Cash December 7, 2022, （www.cninfo.com.cn）
36 Environmental same 20.22 20.22 0.02% 5,000.00 -
service protection service g price settlement December 23,2022 N.;2022-087,2022-
protection controlling 088,2022-089,2022-100
Technology Co., shareholder
Ltd.
and ultimate
controller
Other
enterprise
control
Sichuan Juchao Website
under the
Changhong Accept labor Marketin N Cash December 7, 2022, （www.cninfo.com.cn）
37 same Labor serves 16.20 16.20 0.02% 10,000.00 -
Electronic service g price settlement December 23,2022 N.;2022-087,2022-
controlling
Products Co., Ltd. 088,2022-089,2022-100
shareholder
and ultimate
controller
Other
enterprise Technology
control development
Sichuan Qiruike under the service fee, Juchao Website
Accept labor Marketin N Cash December 7, 2022, （www.cninfo.com.cn）
38 Technology Co., same instrument repair 585.50 585.50 0.72% 5,000.00 -
service g price settlement December 23,2022 N.;2022-087,2022-
Ltd. controlling fee, inspection and 088,2022-089,2022-100
shareholder certification fee,
and ultimate etc.
controller
55
Changhong Meiling Co., Ltd. Semi-Annual Report 2023
Other
enterprise
Sichuan control
Juchao Website
Changhong under the
Accept labor Marketin N Cash December 7, 2022, （www.cninfo.com.cn）
39 International same Travel service 1.69 1.69 0.00% 5,000.00 -
service g price settlement December 23,2022 N.;2022-087,2022-
Travel Service controlling
088,2022-089,2022-100
Co., Ltd shareholder
and ultimate
controller
Enterprises
where the
supervisor of
Mianyang High the
注 tech Zone Hongfu controlling Accept labor Transportation Marketin N Cash
40 45.43 45.43 0.06% 200.00 -
Technology Co., shareholder service services g price settlement
Ltd serves as its
legal
representativ
e
Air conditioner, Spot Juchao Website
Sichuan
Controlling Sales of Kitchen and Marketin N exchange, - December 7, 2022, （www.cninfo.com.cn）
41 Changhong 30.23 30.23 0.00% 1,500.00
shareholder goods bathroom, small g price Bank December 23,2022 N.;2022-087,2022-
Electric Co., Ltd. 088,2022-089,2022-100
appliances acceptance
Sichuan
Changhong Controlling Spot Juchao Website
Kitchen and
Electronics shareholder Sales of Marketin N exchange, - December 7, 2022, （www.cninfo.com.cn）
42 bathroom, small 0.26 0.26 0.00% 3,000.00
and ultimate goods g price Bank December 23,2022 N.;2022-087,2022-
Holding Group appliances
controller acceptance 088,2022-089,2022-100
Co., Ltd.
Sichuan Other
enterprise Spot Juchao Website
Changhong Mold
control Sales of Marketin N exchange, - December 7, 2022, （www.cninfo.com.cn）
43 Plastic parts 57.00 57.00 0.00% 5,000.00
Plastic Tech. Co., under the goods g price Bank December 23,2022 N.;2022-087,2022-
Ltd. same acceptance 088,2022-089,2022-100
controlling
56
Changhong Meiling Co., Ltd. Semi-Annual Report 2023
shareholder
and ultimate
controller
Other
enterprise
Sichuan Zhiyijia control washing machine,
Spot Juchao Website
Network under the Refrigerator,
Sales of Marketin N exchange, - December 7, 2022, （www.cninfo.com.cn）
44 same freezer, Air 375,670.47 375,670.47 29.50% 800,000.00
TechNlogy Co., goods g price Bank December 23,2022 N.;2022-087,2022-
controlling conditioner, small 088,2022-089,2022-100
Ltd. acceptance
shareholder appliances
and ultimate
controller
Other
enterprise
Sichuan control
Juchao Website
Changhong under the
Sales of Air conditioner, Marketin N Cash December 7, 2022, （www.cninfo.com.cn）
45 same 44.03 44.03 0.00% 5,000.00 -
Minsheng goods Refrigerator g price settlement December 23,2022 N.;2022-087,2022-
controlling 088,2022-089,2022-100
Logistics Co., Ltd. shareholder
and ultimate
controller
Other
enterprise
Sichuan Service control
Air conditioners, Juchao Website
Exp. Appliance under the
Sales of inverter integrated Marketin N Cash December 7, 2022, （www.cninfo.com.cn）
46 same 253.80 253.80 0.02% 5,000.00 -
Service Chain goods boards, g price settlement December 23,2022 N.;2022-087,2022-
controlling components etc. 088,2022-089,2022-100
Co., Ltd. shareholder
and ultimate
controller
Guangdong Other Juchao Website
Changhong enterprise Sales of small appliances, Marketin N Cash December 7, 2022, （www.cninfo.com.cn）
47 7.23 7.23 0.00% 5,000.00 -
Electronics Co., control goods Air conditioner g price settlement December 23,2022 N.;2022-087,2022-
Ltd. under the 088,2022-089,2022-100
57
Changhong Meiling Co., Ltd. Semi-Annual Report 2023
same
controlling
shareholder
and ultimate
controller
Other
enterprise
Sichuan control
Changhong Juchao Website
under the Refrigerators,
Intelligence Sales of Marketin N Cash December 7, 2022, （www.cninfo.com.cn）
48 same freezers, and air- 258.76 258.76 0.02% 3,000.00 -
Manufacturing goods g price settlement December 23,2022 N.;2022-087,2022-
Technology Co., controlling conditioners 088,2022-089,2022-100
Ltd. shareholder
and ultimate
controller
Other
enterprise
control
Juchao Website
Sichuan Aoku under the
Sales of Marketin N Cash December 7, 2022, （www.cninfo.com.cn）
49 Technology Co., same Refrigerator 0.77 0.77 0.00% 3,000.00 -
goods g price settlement December 23,2022 N.;2022-087,2022-
Ltd. controlling 088,2022-089,2022-100
shareholder
and ultimate
controller
Other
enterprise
control
Juchao Website
Sichuan under the
Sales of Marketin N Cash December 7, 2022, （www.cninfo.com.cn）
50 Changhong same Air conditioner 5.46 5.46 0.00% 5,000.00 -
goods g price settlement December 23,2022 N.;2022-087,2022-
Source Co., Ltd. controlling 088,2022-089,2022-100
shareholder
and ultimate
controller
Sales of Marketin Juchao Website
51
Guangyuan Other
Air conditioner 22.45 22.45 0.00% 5,000.00 N Cash -
December 7, 2022,
Changhong enterprise goods g price settlement December 23,2022 （www.cninfo.com.cn）
N.;2022-087,2022-
58
Changhong Meiling Co., Ltd. Semi-Annual Report 2023
Electronic control 088,2022-089,2022-100
Technology Co., under the
Ltd. same
controlling
shareholder
and ultimate
controller
Other
enterprise
control
Juchao Website
CHANGHONG( under the
Sales of Marketin N Cash December 7, 2022, （www.cninfo.com.cn）
52 HK)TRADINGLI same Air conditioner 38,739.78 38,739.78 3.04% 150,000.00 -
goods g price settlement December 23,2022 N.;2022-087,2022-
MITED controlling 088,2022-089,2022-100
shareholder
and ultimate
controller
Other
enterprise
control
CHANGHONGE under Juchao Website
the Refrigerator,
LECTRIC(AUST Sales of Marketin N Cash December 7, 2022, （www.cninfo.com.cn）
53 same freezers and 5,714.99 5,714.99 0.45% 150,000.00 -
RALIA)PTY.LTD goods g price settlement December 23,2022 N.;2022-087,2022-
. controlling accessories 088,2022-089,2022-100
shareholder
and ultimate
controller
Other
enterprise
control
Juchao Website
under the
Sales of Marketin N Cash December 7, 2022, （www.cninfo.com.cn）
54 Orion.PDP.Co.,ltd same Refrigerator 1,964.81 1,964.81 0.15% 6,500.00 -
goods g price settlement December 23,2022 N.;2022-087,2022-
controlling 088,2022-089,2022-100
shareholder
and ultimate
controller
59
Changhong Meiling Co., Ltd. Semi-Annual Report 2023
Other
enterprise
control
under the Juchao Website
Changhong
Sales of Marketin N Cash December 7, 2022, （www.cninfo.com.cn）
55 Europe same Refrigerator 4,109.31 4,109.31 0.32% 10,000.00 -
goods g price settlement December 23,2022 N.;2022-087,2022-
Electrics.r.o controlling 088,2022-089,2022-100
shareholder
and ultimate
controller
Other
enterprise
control
Changhong Refrigerator, Juchao Website
under the
International Sales of freezers, Air Marketin N Cash December 7, 2022, （www.cninfo.com.cn）
56 same 5,017.47 5,017.47 0.39% 80,000.00 -
Holdings (Hong goods conditioner, g price settlement December 23,2022 N.;2022-087,2022-
controlling 088,2022-089,2022-100
Kong) Co., Ltd. kitchen utensils
shareholder
and ultimate
controller
Other
enterprise
control
Sichuan Aichuang Juchao Website
under the
Science & Sales of Marketin N Cash December 7, 2022, （www.cninfo.com.cn）
57 same IC 0.73 0.73 0.00% 3,000.00 -
Technology Co., goods g price settlement December 23,2022 N.;2022-087,2022-
controlling 088,2022-089,2022-100
Ltd.
shareholder
and ultimate
controller
Other
enterprise
Suchuan control Juchao Website
Hongmofang under the Sales of Marketin N Cash December 7, 2022, （www.cninfo.com.cn）
58 Refrigerator 4.33 4.33 0.00% 5,000.00 -
Network Service same goods g price settlement December 23,2022 N.;2022-087,2022-
Co., Ltd. controlling 088,2022-089,2022-100
shareholder
and ultimate
60
Changhong Meiling Co., Ltd. Semi-Annual Report 2023
controller
Other
enterprise
control
Juchao Website
Sichuan Ansifei under the
Sales of Print board Marketin N Cash December 7, 2022, （www.cninfo.com.cn）
59 Technology Co., same 0.01 0.01 0.00% 3,000.00 -
goods components g price settlement December 23,2022 N.;2022-087,2022-
Ltd. controlling 088,2022-089,2022-100
shareholder
and ultimate
controller
Other
enterprise
control
Juchao Website
Sichuan Qiruike under the
Sales of Marketin N Cash December 7, 2022, （www.cninfo.com.cn）
60 Technology Co., same IC 0.23 0.23 0.00% 3,000.00 -
goods g price settlement December 23,2022 N.;2022-087,2022-
Ltd. controlling 088,2022-089,2022-100
shareholder
and ultimate
controller
Other
enterprise
control
Juchao Website
Sichuan Qisai under the
Sales of Marketin N Cash December 7, 2022, （www.cninfo.com.cn）
61 Microelectronics same Air conditioner 4.99 4.99 0.00% 3,000.00 -
goods g price settlement December 23,2022 N.;2022-087,2022-
Co., Ltd. controlling 088,2022-089,2022-100
shareholder
and ultimate
controller
Other
Sichuan enterprise Juchao Website
Changhong Mold control Providing Labor cost Marketin N Cash December 7, 2022, （www.cninfo.com.cn）
62 39.31 39.31 3.10% 500.00 -
Plastic Tech. Co., under the services g price settlement December 23,2022 N.;2022-087,2022-
Ltd. same 088,2022-089,2022-100
controlling
61
Changhong Meiling Co., Ltd. Semi-Annual Report 2023
shareholder
and ultimate
controller
Other
enterprise
control
Juchao Website
Sichuan under the
Providing Labor cost Marketin N Cash December 7, 2022, （www.cninfo.com.cn）
63 Changhong Jijia same 5.83 5.83 0.46% 500.00 -
services g price settlement December 23,2022 N.;2022-087,2022-
Fine Co., Ltd. controlling 088,2022-089,2022-100
shareholder
and ultimate
controller
Other
enterprise
control
Sichuan Aichuang Juchao Website
under the
Science & Providing Technical service Marketin N Cash December 7, 2022, （www.cninfo.com.cn）
64 same 11.15 11.15 0.88% 3,000.00 -
Technology Co., services fee, Labor cost g price settlement December 23,2022 N.;2022-087,2022-
controlling 088,2022-089,2022-100
Ltd.
shareholder
and ultimate
controller
Other
enterprise
control
Sichuan Zhiyijia Juchao Website
under the
Network Providing Service fee Marketin N Cash December 7, 2022, （www.cninfo.com.cn）
65 same 13.10 13.10 1.03% 10,000.00 -
Technology Co., services g price settlement December 23,2022 N.;2022-087,2022-
controlling 088,2022-089,2022-100
Ltd.
shareholder
and ultimate
controller
Juchao Website
Sichuan
Controlling Providing Marketin N Cash December 7, 2022, （www.cninfo.com.cn）
66 Changhong Labor cost 2.83 2.83 0.22% 10,000.00 -
shareholder services g price settlement December 23,2022 N.;2022-087,2022-
Electric Co., Ltd. 088,2022-089,2022-100
62
Changhong Meiling Co., Ltd. Semi-Annual Report 2023
Other
enterprise
Sichuan control
Changhong under the Juchao Website
Providing Technical service Marketin N Cash December 7, 2022, （www.cninfo.com.cn）
67 Device same 12.40 12.40 0.98% 10,000.00 -
services fee g price settlement December 23,2022 N.;2022-087,2022-
Technology Co., controlling 088,2022-089,2022-100
Ltd. shareholder
and ultimate
controller
Other
enterprise
control
Mianyang Juchao Website
under the
Huafeng Hulian Providing Marketin N Cash December 7, 2022, （www.cninfo.com.cn）
68 same Repair Service 9.36 9.36 0.74% 3,000.00 -
Technology Co., services g price settlement December 23,2022 N.;2022-087,2022-
Ltd. controlling 088,2022-089,2022-100
shareholder
and ultimate
controller
Other
enterprise
control
Changhong Huayi under the Juchao Website
Providing Technical service Marketin N Cash December 7, 2022, （www.cninfo.com.cn）
69 Compressor Co., same 11.69 11.69 0.92% 500.00 -
services fee g price settlement December 23,2022 N.;2022-087,2022-
Ltd. controlling 088,2022-089,2022-100
shareholder
and ultimate
controller
Other
enterprise
Sichuan control Juchao Website
Changhong under the Providing Marketin N Cash December 7, 2022, （www.cninfo.com.cn）
70 Labor cost 36.71 36.71 2.90% 10,000.00 -
Minsheng same services g price settlement December 23,2022 N.;2022-087,2022-
Logistics Co., Ltd. controlling 088,2022-089,2022-100
shareholder
and ultimate
63
Changhong Meiling Co., Ltd. Semi-Annual Report 2023
controller
Other
enterprise
control
Juchao Website
Sichuan Ailian under the
Providing Marketin N Cash December 7, 2022, （www.cninfo.com.cn）
71 Technology Co., same Labor cost 0.01 0.01 0.00% 3,000.00 -
services g price settlement December 23,2022 N.;2022-087,2022-
Ltd. controlling 088,2022-089,2022-100
shareholder
and ultimate
controller
Other
enterprise
control
Juchao Website
Hefei Changhong under the
Providing Marketin N Cash December 7, 2022, （www.cninfo.com.cn）
72 Industrial Co., same Labor cost 0.004 0.004 0.00% 10,000.00 -
services g price settlement December 23,2022 N.;2022-087,2022-
Ltd. controlling 088,2022-089,2022-100
shareholder
and ultimate
controller
Other
enterprise
control
Sichuan Service Juchao Website
under the
Exp. Appliance Providing Marketin N Cash December 7, 2022, （www.cninfo.com.cn）
73 same Labor cost 123.97 123.97 9.78% 10,000.00 -
Service Chain services g price settlement December 23,2022 N.;2022-087,2022-
controlling 088,2022-089,2022-100
Co., Ltd.
shareholder
and ultimate
controller
Other
enterprise Juchao Website
Sichuan Aoku Installation
control Providing Marketin N Cash December 7, 2022, （www.cninfo.com.cn）
74 Technology Co., service ，Labor 0.11 0.11 0.01% 3,000.00 -
under the services g price settlement December 23,2022 N.;2022-087,2022-
Ltd. cost 088,2022-089,2022-100
same
controlling
64
Changhong Meiling Co., Ltd. Semi-Annual Report 2023
shareholder
and ultimate
controller
Other
enterprise
control
Sichuan Juchao Website
under the
Changhong Providing Marketin N Cash December 7, 2022, （www.cninfo.com.cn）
75 same Maintenance fees 3.16 3.16 0.25% 3,000.00 -
International services g price settlement December 23,2022 N.;2022-087,2022-
controlling 088,2022-089,2022-100
Hotel Co., Ltd.
shareholder
and ultimate
controller
Other
enterprise
control
Sichuan Juchao Website
under the
Changhong provide Marketin N Cash December 7, 2022, （www.cninfo.com.cn）
76 same Labor costs 0.45 0.45 0.04% 10,000.00 -
Electronic labor g price settlement December 23,2022 N.;2022-087,2022-
controlling
Products Co., Ltd. 088,2022-089,2022-100
shareholder
and ultimate
controller
Other
enterprise
control
Sichuan Qiruike under the Juchao Website
Providing Marketin N Cash December 7, 2022, （www.cninfo.com.cn）
77 Technology Co., same Labor cost 0.13 0.13 0.01% 3,000.00 -
services g price settlement December 23,2022 N.;2022-087,2022-
Ltd. controlling 088,2022-089,2022-100
shareholder
and ultimate
controller
Sichuan Other
Changhong enterprise Juchao Website
Precision control Providing Marketin N Cash December 7, 2022, （www.cninfo.com.cn）
78 Labor service 0.27 0.27 0.02% 10,000.00 -
Electronics under the services g price settlement December 23,2022 N.;2022-087,2022-
Technology Co., same 088,2022-089,2022-100
Ltd
controlling
65
Changhong Meiling Co., Ltd. Semi-Annual Report 2023
shareholder
and ultimate
controller
Other
enterprise
control
Juchao Website
under the
Yuanxin Finance Providing Consultation Marketin N Cash December 7, 2022, （www.cninfo.com.cn）
79 same 18.55 18.55 1.46% 10,000.00 -
Lease Co., Ltd. services service g price settlement December 23,2022 N.;2022-087,2022-
controlling 088,2022-089,2022-100
shareholder
and ultimate
controller
Other
enterprise
control
Sichuan Juchao Website
under the
Changhong Providing Technical service Marketin N Cash December 7, 2022, （www.cninfo.com.cn）
80 same 13.56 13.56 1.07% 3,000.00 -
Property Service services fee g price settlement December 23,2022 N.;2022-087,2022-
controlling 088,2022-089,2022-100
Co., Ltd.
shareholder
and ultimate
controller
Other
enterprise
control
Juchao Website
Sichuan Hongwei under the
Providing Technical service Marketin N Cash December 7, 2022, （www.cninfo.com.cn）
81 TechNlogy same 6.97 6.97 0.55% 10,000.00 -
services fee g price settlement December 23,2022 N.;2022-087,2022-
Co.,Ltd. controlling 088,2022-089,2022-100
shareholder
and ultimate
controller
Guangdong Other Juchao Website
Changhong enterprise Provide fuel Marketin N Cash December 7, 2022, （www.cninfo.com.cn）
82 Labor service 48.67 48.67 3.84% 10,000.00 -
Electronics Co., control power g price settlement December 23,2022 N.;2022-087,2022-
Ltd. under the 088,2022-089,2022-100
66
Changhong Meiling Co., Ltd. Semi-Annual Report 2023
same
controlling
shareholder
and ultimate
controller
Other
enterprise
control
Sichuan Qisai Juchao Website
under the
Rent to the Installation Marketin N Cash December 7, 2022, （www.cninfo.com.cn）
83 Microelectronics same 4.46 4.46 0.35% 3,000.00 -
related party service g price settlement December 23,2022 N.;2022-087,2022-
Co., Ltd. controlling 088,2022-089,2022-100
shareholder
and ultimate
controller
Other
Sichuan enterprise
control
Changhong Juchao Website
under the Water, electricity,
Device Sales of Marketin N Cash December 7, 2022, （www.cninfo.com.cn）
84 same and compressed 4.05 4.05 0.00% 5,000.00 -
goods g price settlement December 23,2022 N.;2022-087,2022-
Technology Co., controlling air
088,2022-089,2022-100
Ltd. shareholder
and ultimate
controller
Other
enterprise
control
Juchao Website
Hefei Changhong under the
Rent to the Rental apartment, Marketin N Cash December 7, 2022, （www.cninfo.com.cn）
85 Industrial Co., same 14.65 14.65 0.23% 4,000.00 -
related party warehouses g price settlement December 23,2022 N.;2022-087,2022-
Ltd. controlling 088,2022-089,2022-100
shareholder
and ultimate
controller
Chonghong Other Marketin Juchao Website
86 Huayi enterprise
Leasing
Lease of workshop 0.58 0.58 0.01% 500.00 N Cash -
December 7, 2022,
from related g price settlement December 23,2022 （www.cninfo.com.cn）
Compressor Co., control N.;2022-087,2022-
67
Changhong Meiling Co., Ltd. Semi-Annual Report 2023
Ltd. under the party 088,2022-089,2022-100
same
controlling
shareholder
and ultimate
controller
Other
enterprise
control
Sichuan Aichuang Juchao Website
under the
Science & Rent to the Marketin N Cash December 7, 2022, （www.cninfo.com.cn）
87 same Warehouse for rent 1.95 1.95 0.03% 3,000.00 -
Technology Co., related party g price settlement December 23,2022 N.;2022-087,2022-
controlling 088,2022-089,2022-100
Ltd.
shareholder
and ultimate
controller
Other
enterprise
control
Sichuan Ailian Juchao Website
under the
Science & Rent to the Marketin N Cash December 7, 2022, （www.cninfo.com.cn）
88 same Warehouse for rent 0.16 0.16 0.00% 3,000.00 -
Technology Co., related party g price settlement December 23,2022 N.;2022-087,2022-
controlling 088,2022-089,2022-100
Ltd.
shareholder
and ultimate
controller
Other
enterprise
control
Juchao Website
Sichuan Aoku under the
Rent to the Marketin N Cash December 7, 2022, （www.cninfo.com.cn）
89 Technology Co., same Warehouse for rent 2.10 2.10 0.03% 3,000.00 -
related party g price settlement December 23,2022 N.;2022-087,2022-
Ltd. controlling 088,2022-089,2022-100
shareholder
and ultimate
controller
Sichuan Hongxin Other Rent to the Marketin N Cash December 7, 2022, Juchao Website
90 Rental apartment 0.44 0.44 0.01% 4,000.00 -
Software Co., Ltd. enterprise related party g price settlement December 23,2022 （www.cninfo.com.cn）
68
Changhong Meiling Co., Ltd. Semi-Annual Report 2023
control N.;2022-087,2022-
under the 088,2022-089,2022-100
same
controlling
shareholder
and ultimate
controller
Other
enterprise
control
Sichuan Service Juchao Website
under the
Exp. Appliance Rent to the Marketin N Cash December 7, 2022, （www.cninfo.com.cn）
91 same Rental apartment 8.46 8.46 0.13% 4,000.00 -
Service Chain related party g price settlement December 23,2022 N.;2022-087,2022-
controlling 088,2022-089,2022-100
Co., Ltd.
shareholder
and ultimate
controller
Other
enterprise
control
Juchao Website
Sichuan Qiruike under the
Rent to the Marketin N Cash December 7, 2022, （www.cninfo.com.cn）
92 Technology Co., same Lease of factory 4.73 4.73 0.07% 3,000.00 -
related party g price settlement December 23,2022 N.;2022-087,2022-
Ltd. controlling 088,2022-089,2022-100
shareholder
and ultimate
controller
Juchao Website
Sichuan
Controlling Rent to the Lease of factory, Marketin N Cash December 7, 2022, （www.cninfo.com.cn）
93 Changhong 44.87 44.87 0.70% 4,000.00 -
shareholder related party equipment g price settlement December 23,2022 N.;2022-087,2022-
Electric Co., Ltd. 088,2022-089,2022-100
Sichuan
Controlling Juchao Website
Changhong Lease from
shareholder Marketin N Cash December 7, 2022, （www.cninfo.com.cn）
94 Electronics related Lease of factory 0.0004 0.0004 0.00% 3,000.00 -
and ultimate g price settlement December 23,2022 N.;2022-087,2022-
Holding Group parties
controller 088,2022-089,2022-100
Co., Ltd.
95 Sichuan Other Rent to the Rental apartment, Marketin 230.21 230.21 3.59% 4,000.00 N Cash - December 7, 2022, Juchao Website
69
Changhong Meiling Co., Ltd. Semi-Annual Report 2023
Changhong Jijia enterprise related party warehouses,plants g price settlement December 23,2022 （www.cninfo.com.cn）
Fine Co., Ltd. control ,equipment N.;2022-087,2022-
under the 088,2022-089,2022-100
same
controlling
shareholder
and ultimate
controller
Other
enterprise
Sichuan control
Juchao Website
Changhong under the
Rent to the Marketin N Cash December 7, 2022, （www.cninfo.com.cn）
96 Precision same Rental apartment 4.31 4.31 0.07% 4,000.00 -
related party g price settlement December 23,2022 N.;2022-087,2022-
Electronics Tech. controlling 088,2022-089,2022-100
Co., Ltd. shareholder
and ultimate
controller
Other
enterprise
control
Sichuan Juchao Website
under the
Changhong Rent to the Rental apartment, Marketin N Cash December 7, 2022, （www.cninfo.com.cn）
97 same 12.66 12.66 0.20% 4,000.00 -
Minsheng related party office, factory g price settlement December 23,2022 N.;2022-087,2022-
controlling 088,2022-089,2022-100
Logistics Co., Ltd.
shareholder
and ultimate
controller
Other
enterprise
Serviced
control
Sichuan apartment, Juchao Website
under the
Changhong Mold Rent to the warehouse, Marketin N Cash December 7, 2022, （www.cninfo.com.cn）
98 same 465.93 465.93 7.27% 4,000.00 -
Plastic Tech. Co., related party workshop, g price settlement December 23,2022 N.;2022-087,2022-
controlling 088,2022-089,2022-100
Ltd. equipment and
shareholder
living quarters
and ultimate
controller
70
Changhong Meiling Co., Ltd. Semi-Annual Report 2023
Other
enterprise
Sichuan control
Changhong under the Juchao Website
Rent to the Marketin N Cash December 7, 2022, （www.cninfo.com.cn）
99 Device same Lease of factory 107.36 107.36 1.68% 4,000.00 -
related party g price settlement December 23,2022 N.;2022-087,2022-
Technology Co., controlling 088,2022-089,2022-100
Ltd. shareholder
and ultimate
controller
Other
enterprise
control
Sichuan Zhiyijia Juchao Website
under the
Network Rent to the Marketin N Cash December 7, 2022, （www.cninfo.com.cn）
100 same Rental apartment 9.41 9.41 0.15% 4,000.00 -
Technology Co., related party g price settlement December 23,2022 N.;2022-087,2022-
controlling 088,2022-089,2022-100
Ltd.
shareholder
and ultimate
controller
Other
enterprise
Chengdu control
Changhong under the Leasing Juchao Website
Marketin N Cash December 7, 2022, （www.cninfo.com.cn）
101 Electronic same from related Leasing office 42.56 42.56 0.66% 4,000.00 -
g price settlement December 23,2022 N.;2022-087,2022-
Technology Co., controlling party 088,2022-089,2022-100
Ltd. shareholder
and ultimate
controller
Other
enterprise
Guangdong control Juchao Website
Leasing
Changhong under the Lease of staff Marketin N Cash December 7, 2022, （www.cninfo.com.cn）
102 from related 6.82 6.82 0.11% 4,000.00 -
Electronics Co., same dormitory, plant g price settlement December 23,2022 N.;2022-087,2022-
party 088,2022-089,2022-100
Ltd. controlling
shareholder
and ultimate
71
Changhong Meiling Co., Ltd. Semi-Annual Report 2023
controller
Other
enterprise
control
Juchao Website
Hefei Changhong under the Leasing
Marketin N Cash December 7, 2022, （www.cninfo.com.cn）
103 Industrial Co., same from related lease of plant 107.64 107.64 1.68% 4,000.00 -
g price settlement December 23,2022 N.;2022-087,2022-
Ltd. controlling party 088,2022-089,2022-100
shareholder
and ultimate
controller
Other
enterprise
control
Juchao Website
Sichuan Jiahong under the Leasing
Lease of staff Marketin N Cash December 7, 2022, （www.cninfo.com.cn）
104 Industrial Co., same from related 23.28 23.28 0.36% 5,000.00 -
dormitory g price settlement December 23,2022 N.;2022-087,2022-
Ltd. controlling party 088,2022-089,2022-100
shareholder
and ultimate
controller
Juchao Website
Sichuan Leasing Lease of
Controlling Marketin N Cash December 7, 2022, （www.cninfo.com.cn）
105 Changhong from related laboratory and 184.45 184.45 2.88% 4,000.00 -
shareholder g price settlement December 23,2022 N.;2022-087,2022-
Electric Co., Ltd. party workshop
088,2022-089,2022-100
Sichuan
Controlling Juchao Website
Changhong Leasing Lease of
shareholder Marketin N Cash December 7, 2022, （www.cninfo.com.cn）
106 Electronics from related laboratory and 6.47 6.47 0.10% 5,000.00 -
and ultimate g price settlement December 23,2022 N.;2022-087,2022-
Holding Group party workshop 088,2022-089,2022-100
controller
Co., Ltd.
Sichuan Other
Purchase
Changhong enterprise Juchao Website
and Information
Intelligent control Marketin N Cash December 7, 2022, （www.cninfo.com.cn）
107 construction management 45.42 45.42 0.30% 3,000.00 -
Manufacturing under the g price settlement December 23,2022 N.;2022-087,2022-
Technology Co., of fixed system project 088,2022-089,2022-100
same
Ltd. assets
controlling
72
Changhong Meiling Co., Ltd. Semi-Annual Report 2023
shareholder
and ultimate
controller
Other
enterprise
Knowledge
control Purchase
management, Juchao Website
under the and
Sichuan Hongxin integration and Marketin N Cash December 7, 2022, （www.cninfo.com.cn）
108 same construction 90.24 90.24 0.59% 2,000.00 -
Software Co., Ltd. functional g price settlement December 23,2022 N.;2022-087,2022-
controlling of fixed 088,2022-089,2022-100
improvement
shareholder assets
projects
and ultimate
controller
Other
enterprise
control
Juchao Website
under the Purchase
Sichuan Hongxin Information Marketin N Cash December 7, 2022, （www.cninfo.com.cn）
109 same Intangible 12.11 12.11 0.08% 2,000.00 -
Software Co., Ltd. management g price settlement December 23,2022 N.;2022-087,2022-
controlling assets 088,2022-089,2022-100
shareholder
and ultimate
controller
Other
enterprise
control
Sichuan Zhiyijia Juchao Website
under the
Network Purchase of Marketin N Cash December 7, 2022, （www.cninfo.com.cn）
110 same TV 1.57 1.57 0.01% 2,000.00 -
Technology Co., fixed assets g price settlement December 23,2022 N.;2022-087,2022-
controlling 088,2022-089,2022-100
Ltd.
shareholder
and ultimate
controller
Sichuan Other Juchao Website
Changhong enterprise Purchase Information Marketin N Cash December 7, 2022, （www.cninfo.com.cn）
111 Jiahua control 27.58 27.58 0.18% 2,000.00 -
fixed assets management g price settlement December 23,2022 N.;2022-087,2022-
Information Co., under the
088,2022-089,2022-100
ltd. same
73
Changhong Meiling Co., Ltd. Semi-Annual Report 2023
controlling
shareholder
and ultimate
controller
Other
enterprise
control
Juchao Website
Sichuan Qiruike under the
Purchase of Product quality Marketin N Cash December 7, 2022, （www.cninfo.com.cn）
112 Technology Co., same 28.80 28.80 0.19% 5,000.00 -
fixed assets data platform g price settlement December 23,2022 N.;2022-087,2022-
Ltd. controlling 088,2022-089,2022-100
shareholder
and ultimate
controller
Other
enterprise
control
Juchao Website
under the Financing Financing
Yuanxin Financial Marketin N Cash December 7, 2022, （www.cninfo.com.cn）
113 same 27,779.67 27,779.67 82,000.00 -
Lease Co., Ltd. business business g price settlement December 23,2022 N.;2022-087,2022-
controlling 088,2022-089,2022-100
shareholder
and ultimate
controller
Total -- -- 667,931.73 -- -- -- -- -- -- --
Detail of sales return with major amount involved Not applicable
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 2023 was 2775 million yuan at most (tax-excluded), actually 1,128.3389
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 2023 was 545 million yuan at most (tax-excluded), actually 259.9289 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 2023 was 20 million yuan at most (tax-excluded), actually 1.3150 million yuan
occurred in reporting period.
74
Changhong Meiling Co., Ltd. Semi-Annual Report 2023
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 2023 was 10,465 million yuan at most (tax-excluded), actually 4,296.8060 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
2023 was 40 million yuan at most (tax-excluded), actually12.3977 million yuan occurred in reporting period.
6. It is estimated that the related transaction amount from domestic finished goods logistic business outsourcing to Sichuan Changhong Minsheng Logistics
Co., Ltd. by the Company for year of 2023 was 820 million yuan at most (tax-excluded), actually 368.4978 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 2023 was 450 million yuan at most actually 180.7472 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 2023 was 110 million yuan at most (tax-excluded), actually 27.2221 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 2023 was 95 million yuan at most (tax-excluded), actually 22.8144 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 2023 was 330 million yuan
at most (tax-excluded), actually 102.9983 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 820 million yuan at most, actually 277.7967 million yuan occurred in reporting period.
12. It is expected that the labor service provided by the related party Mianyang High tech Zone Hongfu Technology Co., Ltd. will not exceed 2 million
yuan, and the actual amount incurred during the reporting period is 454300 yuan.
Reasons for major differences between trading price and market
Not applicable
reference price (if applicable)
Note: According to the Shenzhen Stock Exchange's "Listing Rules" and the company's "Authorization Management System" and other relevant regulations, related
party transactions between the company and related parties with an amount less than 3 million yuan (including 3 million yuan) shall be implemented with the approval
of the company's president. During the reporting period, it is expected that the amount of related party transactions between the company and its affiliated party,
Mianyang High tech Zone Hongfu Technology Co., Ltd. (which is an enterprise with a supervisor serving as its legal representative as the controlling shareholder),
will not exceed 2 million yuan, and has been approved by the company's president.
75
Changhong Meiling Co., Ltd. Semi-Annual Report 2023
(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
Main Registered of the Net assets of Net profit of
Name of the
Associati business of capital of the invested the invested the invested
Co-investor invested
on the invested invested enterprise enterprise enterprise
enterprise
enterprise enterprise (RMB (RMB '0,000) (RMB '0,000)
'0,000)
Controlli
ng
Engagement
sharehold
in equity
Sichuan Changhong Electronic er and
investment,
(Group) Co., Ltd., Sichuan ultimate
investment
Changhong Electric Co.,Ltd., controller
management,
Sichuan Shenwan Hongyuan , other
asset
Changhong Equity Investment enterprise
management
Management Co., Ltd., Guangdong s
Changhong and other
Changhong Electronics Co., Ltd., controlled
Group Sichuan activities
Sichuan Qiruike Technology Co., by the
Shenwan with private
Ltd., Sichuan Changhong Power same
Hongyuan equity funds
Supply Co., Ltd., Sichuan controllin
Strategic New (registration 1,500 million 30,295.62 30,294.54 -422.44
Changhong New Energy Technology g
Industry Parent and filing
Co., Ltd., Changhong Sanjie New sharehold
Fund Partnership must be
Energy Co., Ltd., Sichuan er and
(Limited completed in
Changhong Green Environmental ultimate
Partnership) Asset
Science and Technology Co., Ltd., controller
Management
Yibin Red-star Electronics Co., Ltd., , and
Association
Sichuan Changhong Digital listed
of China
Technology Co., Ltd., and companie
before the
Changhong Huayi Compressor s with
engagement
Co.,Ltd. natural
in business
persons
activities).
as
directors
General
items:
venture
For capital
Sichuan (limited to
Sichuan Hongyun Venture Equity controllin
Hongyun unlisted
Investment Maqnagement Co., Ltd., g
Venture Capital enterprises).
Sichuan Changhong Electronics sharehold 148 million 0 0 0
Partnership (Except for
Holding Group Co., Ltd., Sichuan er and items that are
(Limited
Changhong Electric Co., Ltd. ultimate subject to
partnership)
controller approval
according to
law, business
activities
76
Changhong Meiling Co., Ltd. Semi-Annual Report 2023
shall be
independentl
y carried out
according to
law by virtue
of business
license.
Accumulated amount of other litigation that does
not meet the disclosure standard of major not have
litigation（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
Deposit business
Amount for the Period
Maximum daily Opening The total Ending
Deposit Total deposit
Related deposit limit (In balance (In amount Balance (10
Relationship interest rate amount for the
party 10 thousand 10 thousand withdrawn in thousand
range Period (10
yuan) yuan) the Period (10 yuan)
thousand yuan)
thousand yuan)
Sichuan
Other enterprise control
Changhon
under the same
g Group 450,000.00 0.42%-3.5% 346,499.99 2,000,368.77 1,977,591.68 369,277.08
controlling shareholder
Finance
and ultimate controller
Co., Ltd.
Credit extension or other financial business
Total amount
Actual amount ( 10
Related party Relationship Type of business ( 10 thousand
thousand yuan)
yuan)
Sichuan
Other enterprise control under the same controlling Other financial services -
Changhong Group 300,000.00 72,397.63
shareholder and ultimate controller note issuance
Finance Co., Ltd.
Sichuan
Other enterprise control under the same controlling Other financial services -
Changhong Group 300,000.00 46,049.51
shareholder and ultimate controller note discounting
Finance Co., Ltd.
Sichuan
Other enterprise control under the same controlling Other financial services -
Changhong Group 600,000.00 130.72
shareholder and ultimate controller Letter of Guarantee
Finance Co., Ltd.
Note 1: As of June 30,2023, registered capital of Changhong Finance Company is 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
77
Changhong Meiling Co., Ltd. Semi-Annual Report 2023
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
During the reporting period, the company had no other significant related transactions.
XII. Significant contract and implementations
(i) Entrust, contract and leasing
1. Entrust
□Applicable √ Not applicable
No entrust in Period.
2. Contract
□Applicable √ Not applicable
No contract in Period.
3. Leasing
√ Applicable □ Not applicable
Explanation of leasing
Operational leasing of the Company please found more details in “investment real estate”, “fixed assets”, “Right-
of-use assets”, “Lease of related party” and “Rent of related party” in Note of Financial Statement.
Gains or losses to the Company from projects that reached over 10% in total profit of the Company in reporting
period.
□ Applicable √Not applicable
No gains or losses to the Company from projects that reached over 10% in total profit of the Company in reporting
period.
(ii) Major guarantee
√ Applicable □ Not applicable
78
Changhong Meiling Co., Ltd. Semi-Annual Report 2023
In 10 thousand yuan
Particulars about the external guarantee of the Company and subsidiaries (Barring the guarantee for subsidiaries)
Counter
Collatera Complete
Name of the guarante Guarantee
Related Announcement Actual guarantee l (if Guarantee implemen
Company Guarantee limit Actual date of happening Guarantee type e (if for related
disclosure date limit applicabl term tation or
guaranteed applicab party
e) not
le)
- - - - - - - - - - -
Total approving external guarantee in report period (A1) 0Total actual occurred external guarantee in report period (A2) 0
Total actual balance of external guarantee at the end of report
Total approved external guarantee at the end of report period ( A3) 0 period (A4) 0
Guarantee between the Company and the subsidiaries
Counter
Collatera Complete
Name of the guarante Guarantee
Related Announcement Actual guarantee l (if Guarantee implemen
Company Guarantee limit Actual date of happening Guarantee type e (if for related
disclosure date limit applicabl term tation or
guaranteed applicab party
e) not
le)
Joint liability
March 10,022 2,000.00 Y 1-year Y N
guaranty
Joint liability
March 28,2022 7,000.00 Y 1-year Y N
guaranty
Joint liability
April 22,2022 18,000.00 Y 1-year N N
guaranty
Announcement No.: Joint liability
May 6,2022 6,000.00 Y 1-year Y N
2023-091, 2021-092, guaranty
Zhongshan
2021-096 and 2021-109 Joint liability
Changhong Electric 140,000.00 June 10,2022 10,000.00 N/A Y 1-year N N
released on 7 December guaranty
Co., Ltd.
2021 and 24 December Joint liability
June 25,2022 13,000.00 Y 1-year N N
2021 respectively. guaranty
Joint liability
July 2,2022 20,000.00 Y 1-year N N
guaranty
Joint liability
August 19,2022 5,000.00 Y 1-year N N
guaranty
Joint liability
October 11,2022 15,000.00 Y 1-year N N
guaranty
79
Changhong Meiling Co., Ltd. Semi-Annual Report 2023
Joint liability
April 7,2023 6,000.00 Y 1-year N N
Announcement No.: guaranty
2023-087, 2022-088, Joint liability
April 24,2023 10,000.00 Y 1-year N N
2022-091 and 2022-100 guaranty
150,000.00
released on 7 December Joint liability
June 8,2023 10,000.00 Y 1-year N N
2022 and 23 December guaranty
2022 respectively. Joint liability
June 27,2023 7,000.00 Y 1-year N N
guaranty
Joint liability
June 6,2022 3,000.00 Y 1-year Y N
Announcement No.: guaranty
2021-091, 2021-092, Joint liability
July 7,2022 4,000.00 Y 1-year N N
2021-096 and 2021-109 guaranty
16,000.00
released on 7 December Joint liability
October 25,2022 2,000.00 Y 1-year N N
Changhong 2021 and 24 December guaranty
MeilingRidian 2021 respectively. Joint liability
December 8,2022 3,500.00 Y 11.2 months N N
Technology Co., guaranty
Ltd. Announcement No.:
2023-087, 2022-088,
2022-091 and 2022-100
16,000.00
released on 7 December
2022 and 23 December
2022 respectively.
Announcement No.:
2021-091, 2021-092, September 20,2022 2,000.00
Joint liability
Y 4.5 months Y N
2021-096 and 2021-109 guaranty
26,000.00
released on 7 December
ZhongkeMeiling 2021 and 24 December November 14,2022 5,000.00
Joint liability
Y 7.2 months N N
Cryogenic 2021 respectively. guaranty
Technology Co., Announcement No.:
Ltd. 2023-087, 2022-088,
2022-091 and 2022-100
20,000.00
released on 7 December
2022 and 23 December
2022 respectively.
Announcement No.:
2020-097,2020-098, Joint liability
Sichuan Changhong 2020-101 and 2020-107 September 24,2021 5,000.00 Y 1-year Y N
guaranty
Air-conditioner Co., released on 12 100,000.00
Ltd. December 2020 and 30
December 2020 Joint liability
December 7,2021 15,000.00 Y 1-year Y N
respectively. guaranty
80
Changhong Meiling Co., Ltd. Semi-Annual Report 2023
Announcement No.:
2021-091, 2021-092, Joint liability
March 18,2022 8,000.00 Y 1-year Y N
2021-096 and 2021-109 guaranty
100,000.00
released on 7 December
2021 and 24 December Joint liability
2021 respectively. April 18,2022 30,000.00 Y 1-year Y N
guaranty
Joint liability
January 17,2023 10,000.00 Y 9 months N N
guaranty
Joint liability
January 17,2023 5,000.00 Y 1-year N N
guaranty
Announcement No.: Joint liability
February 27,2023 16,000.00 Y 1-year N N
2023-087, 2022-088, guaranty
2022-091 and 2022-100 Joint liability
250,000.00 March 16,2023 30,000.00 Y 1-year N N
released on 7 December guaranty
2022 and 23 December Joint liability
March 24,2023 60,000.00 Y 1-year N N
2022 respectively. guaranty
Joint liability
April 14,2023 12,000.00 Y 1-year N N
guaranty
Joint liability
June 28,2023 3,500.00 Y 6 months N N
guaranty
Announcement No.:
2022-036, 2022-037and
Changhong RUBA 注1
2022-049 released on 5,955.93 - - - - - - -
Trade Company
18 May 2022 and 30
June 2022 respectively.
Announcement No.:
2023-087, 2022-088,
Jiangxi Meiling
2022-091 and 2022-100
Electric Appliance 15,000.00
released on 7 December
Co., Ltd.
2022 and 23 December
2022 respectively.
Announcement No.:
2023-087, 2022-088,
Hefei Meiling
2022-091 and 2022-100
Nonferrous Metal 3,000.00 - - -
released on 7 December
Products Co., Ltd.
2022 and 23 December
2022 respectively.
Announcement No.:
Hefei Meiling
2021-091, 2021-092, Joint liability
Group Holdings 40,000.00 April 18,2022 5,000.00 Y 1-year Y N
2021-096 and 2021-109 guaranty
Limited
released on 7 December
81
Changhong Meiling Co., Ltd. Semi-Annual Report 2023
2021 and 24 December
2021 respectively.
Announcement No.:
2023-087, 2022-088,
2022-091 and 2022-100 Joint liability
60,000.00 May 11,2023 4,500.00 Y 1-year N N
released on 7 December guaranty
2022 and 23 December
2022 respectively.
Announcement No.:
2021-008, 2021-009,
2021-011 and 2021-034 Joint liability
35,000.00 December 9,2021 4,000.00 Y 11 months Y N
released on 3 March guaranty
2021 and 29 April 2021
respectively.
Joint liability
January 26,2022 3,000.00 Y 1-year Y N
guaranty
Joint liability
March 17,2022 5,000.00 Y 1-year Y N
guaranty
Announcement No.: Joint liability
August 25,2022 500.00 Y 1-year N N
2021-091, 2021-092, guaranty
Hefei Changhong 2021-096 and 2021-109 Joint liability
35,000.00 September 8,2022 1,000.00 Y 1-year Y N
Meiling Life released on 7 December guaranty
Appliances Co., 2021 and 24 December Joint liability
September 22,2022 5,000.00 Y 1-year N N
Ltd. 2021 respectively. guaranty
Joint liability
November 21,2022 5,000.00 Y 1-year N N
guaranty
Joint liability
December 8,2022 4,500.00 Y 10.5 months N N
guaranty
Announcement No.: Joint liability
February 22,2023 8,000.00 Y 11 months N N
2023-087, 2022-088, guaranty
2022-091 and 2022-100
35,000.00 Joint liability
released on 7 December May 4,2023 5,000.00 Y 1-year N N
2022 and 23 December guaranty
2022 respectively. Joint liability
April 24,2023 2,000.00 Y 1-year N N
guaranty
Total amount of actual occurred guarantee for subsidiaries in
Total amount of approving guarantee for subsidiaries in report period (B1) 0 395,500.00
report period (B2)
82
Changhong Meiling Co., Ltd. Semi-Annual Report 2023
Total amount of approved guarantee for subsidiaries at the end of reporting Total balance of actual guarantee for subsidiaries at the end of
period (B3)
771,955.93 reporting period (B4)
299,500.00
Guarantee of the subsidiaries for the subsidiaries
Counter
Collatera Complete
Name of the guarante Guarantee
Related Announcement Actual guarantee l (if Guarantee implemen
Company Guarantee limit Actual date of happening Guarantee type e (if for related
disclosure date limit applicabl term tation or
guaranteed applicab party
e) not
le)
Announcement No.:
2021-091, 2021-092,
2021-096 and 2021-109 Joint liability
released on 7 December
5,000.00 June 27,2022 500.00
guaranty
1 year Y N
2021 and 24 December
Anhui Tuoxing
2021 respectively.
Technology Co.,
Announcement No.:
Ltd.
2022-087, 2022-088,
2022-091 and 2022-100 Joint liability
released on 7 December
8,000.00 June 20,2023 1,000.00
guaranty
1 year N N
2022 and 23 December
2022 respectively.
Announcement No.:
2022-087, 2022-088,
Anhui Ling'an
2022-091 and 2022-100
Medical Equipment
released on 7 December
12,000.00 - - - - - -
Co., Ltd.
2022 and 23 December
2022 respectively.
Total amount of actual occurred guarantee for subsidiaries in
Total amount of approving guarantee for subsidiaries in report period (C1) 0.00 1,500.00
report period (C2)
Total amount of approved guarantee for subsidiaries at the end of reporting Total balance of actual guarantee for subsidiaries at the end of
period (C3)
25,000.00 reporting period (C4)
1,000.00
Total amount of guarantee of the Company (total of three above mentioned guarantee)
Total amount of actual occurred guarantee in report period
Total amount of approving guarantee in report period (A1+B1+C1) 0.00 397,000.00
(A2+B2+C2)
Total amount of approved guarantee at the end of report period 796,955.93 Total balance of actual guarantee at the end of report period 300,500.00
83
Changhong Meiling Co., Ltd. Semi-Annual Report 2023
(A3+B3+C3) (A4+B4+C4)
Ratio of actual guarantee (A4+B4+C4) in net assets of the Company 55.18%
Including:
Amount of guarantee for shareholders, actual controller and its related parties (D) 0
The debts guarantee amount provided for the guaranteed parties whose assets-liability ratio exceed 70% directly or indirectly (E) 285,000.00
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) 285,000.00
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 30 April 2022. For details, please refer to
the announcement No. 2022-037 disclosed by the company.
The above-mentioned guarantee objects are the wholly-owned and holding subsidiaries of the Company, and these wholly-owned and holding subsidiaries are in normal
production and operation, there are no overdue loans, and the guarantee risks are controllable. As of the end of the reporting period, the effective amount of guarantee
provided to the subsidiaries that approved by the Company amounted to 7,719.5593 million yuan, actually 3,950 million yuan occurred. At the end of the reporting period,
the practical guarantee balance amounted to 2,995 million yuan, accounting for the Company’s latest net assets ratio of 55%. As of the end of the reporting period, the
effective amount of guarantee provided to the subsidiaries from subsidiary that approved by the Company amounted to 250 million yuan, actually 15 million yuan occurred.
As of 30 June 2023, the actual guarantee balance provided to subsidiaries by subsidiary was 10 million yuan, occupied 0.18% of the latest net assets of the Company.
Explanation on guarantee with composite way: Not applicable
84
Changhong Meiling Co., Ltd. Semi-Annual Report 2023
(iii) Trust financing
√ Applicable □ Not applicable
In 10 thousand yuan
Impairment
amount for
Type Capital resources Amount for entrust Undue balance Overdue amount
overdue financial
management
Bank financing products Idle own funds 15,000.00 10,000.00 0 0
Total 15,000.00 10,000.00 0 0
Details of the single major amount, or high-risk trust investment with low security, poor fluidity
√ Applicable □ Not applicable
85
Changhong Meiling Co., Ltd. Semi-Annual Report 2023
In 10 thousand yuan
Amou
nt of
Actu reserv
Wheth
al e for Whether
Antici er
Trustee Criteri colle devalu has Summary of the
Reference pated Actual appro
instituti Sourc a for cted ation entrust items and
Truste Produ Expiry annual incom gains/lo ved by
on (or Amount e of Start date Capital investment purpose fixing gains of finance related query
e type ct type date rate of e (if sses in legal
name of funds rewar /loss withdr plan in index (if
return applic period proced
trustee) d es in awing the applicable)
able) ure
perio in the future
(Y/N)
d year(if
applic
able)
The principal of this
Princi structured deposit is included
Zhongsh
pal- in the unified operation and
anbranc
guaran management of funds of Juchao
h of
teed Idle February Guangfa Bank, and the Not Not Website(www.c
China Bank May 15, Agree 18.4
with 5,000.00 own 14, income of investors' 1.5% applic 18.49 N Y applicab ninfo.com.cn) (
Guangfa 2023 ment 9
floatin funds 2023 structured deposits depends able le Announcement
Bank
g on the performance of No.: 2023-009)
Co.,
incom USD/JPY during the
Ltd.
e observation period.
Bank of Communications
Zhongsh Princi
operates the funds raised by
an pal-
structured deposit products
branch guaran Juchao
in a unified manner and
of teed Idle Not Not Website(www.c
Bank March 10, July 10, manages them in accordance Agree 1.75%/3%
Bank of with 5,000.00 own applic - - N Y applicab ninfo.com.cn) (
2023 2023 with the principle of ment /3.2%
Commu floatin funds able le Announcement
separating basic deposits
nication g No.: 2023-010)
from derivative transactions.
s Co., incom
The raised principal will be
Ltd e
included in the internal fund
86
Changhong Meiling Co., Ltd. Semi-Annual Report 2023
of Bank of Communications
for unified operation and
management, and will be
included in the payment
scope of deposit reserve
fund and deposit insurance.
The embedded derivative
part of products will be
linked to the exchange rate,
interest rate, commodity and
index, etc.
Princi
pal- The structured deposits are
Mianya guaran included in the payment Juchao
ng teed Idle Septembe scope of deposit reserve and Not Not Website(www.c
Bank June 28, Agree 1.3%/2.8
branch with 5,000.00 own r 28, deposit insurance premium applic - - N Y applicab ninfo.com.cn) (
2023 ment %/3%
of SPD floatin funds 2023 in accordance with deposit able le Announcement
Bank g management and regulatory No.: 2023-038)
incom requirements,
e
Total 15,000.00 -- -- -- -- -- -- - 18.49 -- - -- -- --
Note: Zhongke Meiling, a subsidiary of the Company, is a listed company of the Beijing Stock Exchange. For details of its entrusted financial management, please refer to
Zhongke Meiling's 2023 Semi-annual Report.
Entrust financial expected to be unable to recover the principal or impairment might be occurred
□ Applicable √ Not applicable
87
Changhong Meiling Co., Ltd. Semi-Annual Report 2023
(iv) Other material contracts
□ Applicable √ Not applicable
No other material contracts in the period.
XIII. Explanation on other significant events
√ Applicable □ Not applicable
1. According to the resolutions adopted at the 30st meeting of the 10th Board of Directors, the 21nd meeting
of the 10th Board of Supervisors and the 2022 Annual General Meeting of Shareholders, it was agreed that the
Company and its subsidiaries would make a single provision for bad debts for the receivables of the customer,
Changhong RUBA Electric Co., Ltd. (a joint venture of Zhongshan Changhong Electric Co., Ltd., a subsidiary of
the Company) in the fourth quarter of 2022, and it was agreed that in the fourth quarter of 2022, the Company, its
subsidiaries Hefei Meiling Group Holding Co., Ltd., Sichuan Changhong Air Conditioning Co., Ltd. and its
affiliated company Sichuan Zhiyijia Network Technology Co., Ltd. would make a single provision for bad debts for
the receivables of Gome (Gome is a general term for the subsidiaries, branches, offices and agencies at all levels of
Gome Retail), and the total amount of the above-mentioned single provision for bad debts is RMB 101,962,546.44.
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. 2023-002, 2023-005 and 2023-030) on 18 January 2023 and 26 April 2023.
2. According to the resolutions of the 31st meeting of the 10th Board of Directors, the 22nd meeting of the 10th
Board of Supervisors and the 2022 Annual General Meeting of Shareholders, the Plan on the Company's Profit
Distribution in 2022 was adopted, and at the same time, the independent directors of the Company issued
independent approval opinions on the plan. Considering the interests of shareholders and the long-term development
needs of the Company, based on the Company's total share capital of 1,029,923,715 shares on December 31, 2022,
the Company distributed a cash dividend of RMB 0.9 (including tax) to all shareholders for every 10 shares, with
no bonus or conversion of reserve funds into share capital.After this distribution, the remaining accumulated
undistributed profit of the parent company was RMB 971,443,732.63, and the remaining undistributed profit was
carried forward to the next year for distribution.On June 10, 2023, the Company disclosed the Announcement on
the Implementation of the Profit Distribution Plan for 2022, and implemented the aforementioned profit distribution
plan.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. 2023-011, 2023-012 ,2023-014,2023-030 and 2023-037) on 31 March 2023, 26 April 2023
and 10 June 2023.
3. According to the resolution adopted at the 31st meeting of the 10th Board of Directors and the 2022 Annual
General Meeting of Shareholders, it was agreed to re-appoint ShineWing Certified Public Accountants (special
general partnership) as the auditing agency for the Company's 2023 annual financial report and internal control for
88
Changhong Meiling Co., Ltd. Semi-Annual Report 2023
one year.In the meantime, the General Meeting of Shareholders authorized the management of the Company to
negotiate with ShineWing to determine the relevant audit remuneration according to the specific audit requirements
and audit scope of the Company in 2023.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. 2023-011, 2023-015 and 2023-030) on 31 March 2023 and , 26
April 2023.
4. After deliberated and approved by the 31st session of 10th BOD and Annual General Meeting of 2022, it agreed
that the Company and its subsidiaries shall carry out forward foreign exchange fund trading business during the
period from 1 July 2023 to 30 June 2024. Balance of trading not exceeding US$ 1.046 billion (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. 2023-011, 2023-016 and 2023-030) on 31 March 2023 and 26 April 2023.
5. By the resolution passed at the 31st meeting of the Tenth Board of Directors and the 2022 Annual General Meeting
of Shareholders, it was agreed that the Company and its holding subsidiaries should apply for a special credit line
for RMB bill pool of maximum RMB 400 million from Hefei Branch of Industrial Bank Co., Ltd., that of maximum
RMB 300 million from Hefei Branch of Ping An Bank Co., Ltd., and that of RMB 400 million from Hefei Branch
of Jiujiang Bank 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”,
“Hong Kong Commercial Daily” and Juchao Website (www.cninfo.com.cn) that the Company disclosed in the form
of announcement (Announcement No. 2023-011, 2023-018 and 2023-030) on 31 March 2023 and 26 April 2023.
6. During the period from April 17, 2023 to April 19, 2023, the deviation of the closing price of the Company's stock
trading for three consecutive trading days exceeded 20%. According to the relevant regulations of Shenzhen Stock
Exchange, the Company issued the Announcement of Abnormal Fluctuations in Stock Trading.
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. 2023-029) on 20 April 2023.
7. According to the resolutions of the 32nd meeting of the 10th Board of Directors and the first extraordinary General
Meeting of Shareholders in 2023, it was agreed to revise some articles of the Articles of Association according to
the needs of the Company's operation and management and the actual situation 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. 2023-
023, 2023-027 and 2023-033) on 20 April 2023 and 11 Mayl 2023.
8. On April 27, 2023, the Company received a notice from Mr. Tang Youdao, Vice President of the Company. Based
on his firm confidence in the Company's future development prospects and recognition of the Company's long-term
investment value, Mr. Tang Youdao increased his holdings of common shares (A shares) by 800,000 shares through
centralized bidding in the trading system of 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. 2023-032) on 29 April 2023.
9. In order to establish a variety of shareholder return mechanisms, thank shareholders for their long-term concern
and support, and at the same time to allow shareholders to experience the Company's new products and services,
and improve investors' understanding and recognition of the Company's intrinsic value, the Company held the
89
Changhong Meiling Co., Ltd. Semi-Annual Report 2023
"Meiling 40th Anniversary Shareholder Thanksgiving Festival" from May 20, 2023 to May 28, 2023.
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. 2023-034) on 18 May 2023.
10. On May 25, 2023, the Company issued the Announcement on the Resignation of Senior Managers of the
Company, and Mr. Liu Hongwei, the former Executive Vice President of the Company, applied to resign as the
executive vice president of the Company for personal reasons. After resigning, Mr. Liu Hongwei still works in 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. 2023-036) on 25 May 2023.
11. On May 24, 2023, the Company received the Notice on Share Reduction Plan from Mr. Huang Danian, Vice
President of the Company. Due to the needs of personal family funds, Mr. Huang Danian planned to reduce his
shares by no more than 89,113 shares (accounting for 0.0087% of the Company's total share capital) through
centralized bidding within 6 months after 15 trading days upon the announcement date of the reduction plan, with
the amount of reduction not exceeding 25% of his shares 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. 2023-035) on
25 May 2023.
XIV. Major event of the subsidiary
√ Applicable □ Not applicable
According to the resolutions of the 31st meeting of the 10th Board of Directors and the 22nd meeting of the 10th
Board of Supervisors, it was agreed that Zhongshan Changhong, a subsidiary of the Company would write off the
uncollectible bad debts totaling RMB 1,307,424.41.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. 2023-011, 2023-012 and 2023-017) on 31 March 2023.
90
Changhong Meiling Co., Ltd. Semi-Annual Report 2023
Section VII Changes in Shares and Particular about Shareholders
I. Changes in Share Capital
(i) Changes in Share Capital
In Shares
Before the Change Increase/Decrease in the Change (+, -) After the Change
B Public
on reserve
New
Proporti us transfer Proporti
Amount shares Others Subtotal Amount
on sh into on
issued
ar share
es capital
I. Restricted shares 7,192,492 0.70% 0 0 0 +918,823 +918,823 8,111,315 0.79%
1. State-owned shares 0 0.00% 0 0 0 0 0 0 0.00%
2. State-owned legal 1,141,053 0.11%
1,141,053 0.11% 0 0 0 0 0
person’s shares
3. Other domestic +496,350 +496,350 5,280,369 0.51%
4,784,019 0.47% 0 0 0
shares
Including: Domestic 0 0 3,363,539 0.33%
3,363,539 0.33% 0 0 0
legal person’s shares
Domestic natural +496,350 +496,350 1,916,830 0.18%
1,420,480 0.14% 0 0 0
person’s shares
4. Foreign shares 1,267,420 0.12% 0 0 0 +422,473 +422,473 1,689,893 0.17%
Including: Foreign legal 0 0 0 0.00%
0 0.00% 0 0 0
person’s shares
Foreign natural person’s +422,473 +422,473 1,689,893 0.17%
1,267,420 0.12% 0 0 0
shares
II. Unrestricted shares 1,022,731,223 99.30% 0 0 0 -918,823 -918,823 1,021,812,400 99.21%
1. RMB ordinary shares 875,808,809 85.04% 0 0 0 -496,350 -496,350 875,312,459 84.99%
2. Domestically listed -422,473 -422,473 146,499,941 14.22%
146,922,414 14.26% 0 0 0
foreign shares
3. Overseas listed 0 0 0 0.00%
0 0.00% 0 0 0
foreign shares
4. Others 0 0.00% 0 0 0 0 0 0 0.00%
100.00 0 0 1,029,923,715 100.00
III. Total shares 1,029,923,715 0 0 0
% %
1. Reasons for share changed
√ Applicable □ Not applicable
(1) On April 27, 2023, Mr. Tang Youdao, Vice President of the Company, based on his firm confidence in the
Company's future development prospects and recognition of the Company's long-term investment value, increased
his holdings of common shares by 800,000 shares through centralized bidding in the trading system of Shenzhen
Stock Exchange. According to the Rules for the Administration of the Shares of the Company Held by Directors,
Supervisors and Senior Managers of Listed Companies and Their Changes and other relevant regulations, 75% of
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Changhong Meiling Co., Ltd. Semi-Annual Report 2023
the total shares of the company held by Mr. Tang Youdao, namely 600,000 shares, were locked.
(2) On May 25, 2023, Mr. Liu Hongwei, Executive Vice President of the Company, resigned as the executive
vice president of the Company for personal reasons, and his original term of office expired on October 12, 2023.
According to the Detailed Rules for the Implementation of Shareholding Reduction by Shareholders, Directors,
Supervisors and Senior Managers of Companies Listed in Shenzhen Stock Exchange, during the reporting period,
25% of the total shares of the Company held by Mr. Liu Hongwei, namely 422,473 shares, were locked because he
left office less than six months ago, that is, the full amount of Meiling shares held by Mr. Liu Hongwei was locked.
(3) According to the relevant provisions of the Company Law, the Securities Law and the Rules for the
Administration of the Shares of the Company Held by Directors, Supervisors and Senior Managers of Listed
Companies and Their Changes, 75% of 414,600 common shares held by Ms. Li Xia at the beginning of 2023,
namely 310,950 shares, were restricted from sale, and the other 25%, namely 103,650 shares, were lifted from such
restriction.
92
Changhong Meiling Co., Ltd. Semi-Annual Report 2023
2. Approval of share changed
□ Applicable √ Not applicable
3. Ownership transfer of share changed
□ Applicable √ Not applicable
4. Implementation progress of shares buy-back
□ Applicable √ Not applicable
5. Implementation progress of reducing holdings of shares buy-back by centralized bidding
□ Applicable √ Not applicable
6. Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share
attributable to common shareholders of Company in latest year and period
□ Applicable √ Not applicable
7. Other information necessary to disclose or need to disclosed under requirement from security regulators
□ Applicable √ Not applicable
(ii) Changes of lock-up stocks
√ Applicable □ Not applicable
In: Shares
Restricted
Shares shares Ending
Opening shares Restricted
Shareholders released in increased shares Date for released
restricted reasons
Period in restricted
Period
On May 25, 2023, Mr. Liu Hongwei,
Executive Vice President of the Company,
resigned as the executive vice president of
the Company for personal reasons, and his
original term of office expired on October
12, 2023. According to the relevant
provisions of the Detailed Rules for the
Implementation of Shareholding Reduction
Top by Shareholders, Directors, Supervisors and
Liu Hongwei 1,267,420 0 422,473 1,689,893 management Senior Managers of Companies Listed in
lock-in stock Shenzhen Stock Exchange, directors,
supervisors and senior managers who leave
their posts before the expiration of their
term of office shall not transfer more than
25% of the total shares held by them within
the term of office determined when they
take office and within six months after the
expiration of their term of office; Within six
months after leaving their post, they shall
93
Changhong Meiling Co., Ltd. Semi-Annual Report 2023
not transfer their shares of the Company.
Therefore, the lifting of the restrictions on
the sale of the Company's shares held by
them must comply with the above
provisions.
On April 27, 2023, Mr. Tang Youdao, Vice
President of the Company, based on his
firm confidence in the Company's future
development prospects and recognition of
the Company's long-term investment value,
increased his holdings of common shares
Top
by 800,000 shares through centralized
Tang Youdao 0 0 600,000 600,000 management
bidding in the trading system of Shenzhen
lock-in stock
Stock Exchange. According to the
Company Law and other relevant
regulations, the number of shares
transferred each year during their tenure
shall not exceed 25% of the total number of
shares held by them.
At the beginning of 2023, 103,650 shares
Top
held by Ms. Li Xia, accounting for 25% of
Li Xia 414,600 103,650 0 310,950 management
the total shares, were lifted from the
lock-in stock
restricted sale.
Total 1,682,020 103,650 1,022,473 2,600,843 -- --
II. Securities issuance and listing
□ Applicable √ Not applicable
III. Amount of shareholders of the Company and particulars about shares holding
In Shares
Total preference shareholders with
Total shareholders at end of the Period 53,068 voting rights recovered at end of 0
reporting period (if any)
Particulars about common shares held above 5% by shareholders or top ten common shareholders
Amount of Amount Information
Amount of
common of of shares
Proporti common
shares held at Changes in restricte pledged,
Nature of on of shares held
Full name of Shareholders tagged or
shareholder shares the end of report period d
held without
reporting common frozen
restriction
period shares Stat Am
e of ount
94
Changhong Meiling Co., Ltd. Semi-Annual Report 2023
held shar
e
State-owned
Sichuan Changhong Electric Co., Ltd.
legal person
24.12% 248,457,724 0 0 248,457,724 - -
Hefei Industry Investment Holding State-owned
(Group) Co., Ltd. legal person
4.64% 47,823,401 0 0 47,823,401 - -
CHANGHONG (HK) TRADING Foreign
LIMITED legal person
2.63% 27,077,797 0 0 27,077,797 - -
The National Social Security Fund 602 Domestic
portfolio non-state-
owned legal
1.70% 17,525,935 +17,525,935 0 17,525,935 - -
person
CAO SHENGCHUN Foreign
nature 1.43% 14,766,086 0 0 14,766,086 - -
person
Taiping Assets-ICBC- Taiping Star 19 Domestic
investment products non-state-
owned legal
1.14% 11,772,400 +11,772,400 0 11,772,400 - -
person
China Europe AMC-China Life Insurance Domestic
Co., Ltd.－Divident- non-state-
China Europe Fund Guoshou Equilibrium owned legal 1.11% 11,438,335 +11,438,335 0 11,438,335 - -
Stock Portfolio Single Asset Management person
Plan (Available for Sale)
SPD bank－Bo Shi innovation economy Domestic
hybrid securities investment fund non-state-
owned legal
1.01% 10,412,300 +10,412,300 0 10,412,300 - -
person
China Europe AMC-China Life Domestic
Insurance Co., Ltd.－Traditional risk－ non-state-
China Europe Fund Guoshou Equilibrium owned legal 0.64% 6,566,700 +6,566,700 0 6,566,700 - -
Stock Traditional Available for Sale Singl person
e Asset Management Plan
Philip Securities (H.K.) Co., Ltd. Foreign
legal person
0.61% 6,296,913 0 0 6,296,913 - -
Description of the above shareholders in relation to delegate/entrusted
Not applicable
voting rights and abstention from voting rights.
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
Explanation on associated relationship among the aforesaid Measures for the Administration of Information Disclosure of Shareholder
shareholders Equity Changes of Listed Companies among Sichuan Changhong, Hong
Kong Changhong and other top 7 shareholders （Excluding Phillip
Securities (Hong Kong) Co., Ltd.); The company neither knows whether
there is any association among other shareholders, nor knows whether other
shareholders belong to the persons acting in concert that is stipulated in the
“Administrative Measures on Information Disclosure of Changes in
Shareholding of Listed Companies”.
Description of the above shareholders in relation to delegate/entrusted
Not Applicable
voting rights and abstention from voting rights.
Special note on the repurchase account among the top 10 shareholders
Not Applicable
(if applicable)
95
Changhong Meiling Co., Ltd. Semi-Annual Report 2023
Particular about top ten shareholders with un-restrict shares held
Amount of unrestricted shares Type of shares
Shareholders’ name
held at end of Period Type Amount
Sichuan Changhong Electric Co., Ltd. 248,457,724 Common shares in RMB 248,457,724
Hefei Industry Investment Holding (Group) Co., Ltd. 47,823,401 Common shares in RMB 47,823,401
27,077,797 Foreign shares in 27,077,797
CHANGHONG (HK) TRADING LIMITED
domestic market
The National Social Security Fund 602 portfolio 17,525,935 Common shares in RMB 17,525,935
CAO SHENGCHUN 14,766,086 Foreign shares in 14,766,086
domestic market
Taiping Assets-ICBC- Taiping Star 19 investment 11,772,400 Common shares in RMB 11,772,400
products
China Europe AMC-China Life Insurance Co., Ltd.－ 11,438,335 Common shares in RMB 11,438,335
Divident-
China Europe Fund Guoshou Equilibrium Stock Portfolio
Single Asset Management Plan (Available for Sale)
SPD bank－Bo Shi innovation economy hybrid securities 10,412,300 Common shares in RMB 10,412,300
investment fund
China Europe AMC-China Life Insurance Co., Ltd.－ 6,566,700 Common shares in RMB 6,566,700
Traditional risk－
China Europe Fund Guoshou Equilibrium Stock Tradition
al Available for Sale Single Asset Management Plan
Philip Securities (H.K.) Co., Ltd. 6,296,913 Foreign shares in 6,296,913
domestic market
Expiation on associated relationship or consistent actors within the top 10 un-restrict Found more in “Particulars about shares held above 5% by
shareholders and between top 10 un-restrict shareholders and top 10 shareholders shareholders or top 10 shares holding”
Explanation on top ten common shareholders involving margin business (if any) Not applicable
Note 1: At end of the reporting period, the person acting in concert with controlling shareholder Sichuan Changhong-
- CHANGHONG (HK) TRADING LIMITED, holds B-stock of the Company as 33,374,710 shares, among which,
6,296,913 shares are held through Philip Securities (H.K.) Co., Ltd. by CHANGHONG (HK) TRADING LIMITED
Note 2: In the above table, "Particulars about shares held above 5% by shareholders or top 10 shares holding" is
subject to the data on stock transfer books provided by China Securities Depository and Clearing Corporation
Limited Shenzhen Branch
Whether the top ten ordinary shareholders of the company and the top 10 ordinary shareholders of unrestricted
conditions have made the repurchase transactions as agreed during the reporting period.
□Yes √ No
The top ten ordinary shareholders of the company and the top 10 ordinary shareholders of unrestricted conditions
have not made the repurchase transactions as agreed during the reporting period.
IV. Changes of shares held by directors, supervisors and senior executives
√ Applicable □ Not applicable
Shares held Number Number Shares held Number of Number of Number of
Working at period- of of shares at period- restricted restricted restricted
Name Title
status begin shares decreased end shares shares shares
(share) increase in this (share) granted at granted at granted at
96
Changhong Meiling Co., Ltd. Semi-Annual Report 2023
d in this period period- the period period-end
period (share) begin (share) (share)
(share) (share)
Wu
Chairman In office 570,500 0 0 570,500 0 0 0
Dinggang
Zhong
Director, President In office 236,175 0 0 236,175 0 0 0
Ming
Yong
Director In office 0 0 0 0 0 0 0
Fengshan
Zhao
Director In office 0 0 0 0 0 0 0
Qilin
Kou Director, Deputy
In office 0 0 0 0 0 0 0
Huameng president
Hu Director, Vice
In office 178,050 0 0 178,050 0 0 0
Zhaogui president
Hong Independent
In office 0 0 0 0 0 0 0
yuanjia director
Independent
Mou Wen In office 0 0 0 0 0 0 0
director
Zhao Independent
In office 0 0 0 0 0 0 0
Gang director
Chairman of
Shao Min In office 0 0 0 0 0 0 0
Supervisory
He Xintan Supervisor In office 0 0 0 0 0 0 0
Huang
Supervisor In office 0 0 0 0 0 0 0
Hong
Ji Ge Staff supervisor In office 0 0 0 0 0 0 0
Sun
Staff supervisor In office 0 0 0 0 0 0 0
Hongying
Huang
Vice president In office 356,450 0 0 356,450 0 0 0
Danian
Tang
Vice president In office 0 800,000 0 800,000 0 0 0
Youdao
Pang CFO (person in
In office 0 0 0 0 0 0 0
Haitao charge of finance)
Secretary of the
Li Xia In office 414,600 0 0 414,600 0 0 0
Board
Liu Executive vice Dimissio
1,689,893 0 0 1,689,893 0 0 0
Hongwei president n
Total -- -- 3,445,668 800,000 0 4,245,668 0 0 0
V. Changes in controlling shareholders or actual controllers
(i) Controlling shareholder changes in reporting period
□ Applicable √ Not applicable
Controlling shareholder stays the same in Period.
(ii) Changes of actual controller in Period
□ Applicable √ Not applicable
Actual controller stays the same in Period
97
Changhong Meiling Co., Ltd. Semi-Annual Report 2023
Section VIII Preferred Stock
□ Applicable √ Not applicable
The Company had no preferred stock in the Period
98
Changhong Meiling Co., Ltd. Semi-Annual Report 2023
Section IX Corporate Bonds
□ Applicable √ Not applicable
99
Changhong Meiling Co., Ltd. Semi-Annual Report 2023
Section X Financial Report
I. Audit report
Whether the semi annual report is audited
□ Yes √ No
The company's semi annual financial report has not been audited
II. Financial Statement
Statement in Financial Notes are carried in RMB/CNY
1. Consolidated Balance Sheet
Prepared by CHANGHONG MEILING CO., LTD.
June 30, 2023
In RMB
Item June 30, 2023 January 1, 2023
Current assets:
Monetary funds 7,887,243,778.77 6,839,421,779.13
Settlement provisions
Capital lent
Trading financial assets 192,881,811.89 57,660,588.67
Derivative financial assets
Note receivable
Account receivable 2,626,925,077.94 1,306,871,945.85
Receivable financing 1,604,435,165.24 1,446,358,719.88
Accounts paid in advance 19,506,880.37 45,859,491.55
Insurance receivable
Reinsurance receivables
Contract reserve of reinsurance
receivable
Other account receivable 84,080,620.23 88,354,803.24
Including: Interest receivable
Dividend receivable
Buying back the sale of financial assets
Inventories 2,300,494,914.54 1,710,306,933.71
Contractual assets 31,956,763.36 3,530,922.13
Assets held for sale
Non-current asset due within one year 292,055,597.22 170,167,638.89
100
Changhong Meiling Co., Ltd. Semi-Annual Report 2023
Other current assets 319,262,837.45 120,589,431.85
Total current assets 15,358,843,447.01 11,789,122,254.90
Non-current assets:
Loans and payments on behalf
Debt investment 182,033,111.11 121,543,750.00
Other debt investment
Long-term account receivable
Long-term equity investment 103,328,795.30 100,384,428.50
Investment in other equity instrument
Other non-current financial assets 628,549,448.31 628,549,448.31
Investment real estate 51,909,274.28 52,898,060.89
Fixed assets 2,192,986,380.31 2,229,553,866.96
Construction in progress 62,914,871.29 66,522,492.77
Productive biological asset
Oil and gas asset
Right-of-use assets 32,936,873.96 36,646,135.10
Intangible assets 908,117,247.23 900,568,008.21
Expense on Research and Development 97,944,716.31 102,148,390.57
Goodwill
Long-term expenses to be apportioned 16,136,485.05 14,900,600.59
Deferred income tax asset 166,501,193.86 161,565,695.30
Other non-current asset 1,689,040.18 893,238.57
Total non-current asset 4,445,047,437.19 4,416,174,115.77
Total assets 19,803,890,884.20 16,205,296,370.67
Current liabilities:
Short-term loans 881,207,127.01 674,143,916.67
Loan from central bank
Capital borrowed
Trading financial liability 113,610,931.43 41,961,524.78
Derivative financial liability
Note payable 5,767,919,542.57 4,964,374,512.60
Account payable 4,898,495,830.71 2,917,997,138.00
Accounts received in advance
Contractual liability 355,486,232.62 358,755,397.77
Selling financial asset of repurchase
Absorbing deposit and interbank deposit
Security trading of agency
101
Changhong Meiling Co., Ltd. Semi-Annual Report 2023
Security sales of agency
Wage payable 367,774,567.58 348,154,915.13
Taxes payable 138,928,253.50 80,287,878.62
Other account payable 1,041,304,135.56 828,207,568.21
Including: Interest payable
Dividend payable 32,049,708.69 4,978,994.16
Commission charge and commission
payable
Reinsurance payable
Liability held for sale
Non-current liabilities due within one
40,699,158.12 30,287,099.08
year
Other current liabilities 25,838,465.28 22,605,269.51
Total current liabilities 13,631,264,244.38 10,266,775,220.37
Non-current liabilities:
Insurance contract reserve
Long-term loans 128,000,000.00 148,000,000.00
Bonds payable
Including: Preferred stock
Perpetual capital securities
Lease liability 25,339,886.55 28,164,287.97
Long-term account payable 1,049,108.10 1,145,286.48
Long-term wages payable 12,164,985.18 10,790,859.64
Accrual liability 32,038,544.31 32,685,631.78
Deferred income 146,434,187.24 161,013,911.91
Deferred income tax liabilities 14,990,512.96 17,509,503.08
Other non-current liabilities
Total non-current liabilities 360,017,224.34 399,309,480.86
Total liabilities 13,991,281,468.72 10,666,084,701.23
Owner’s equity:
Share capital 1,029,923,715.00 1,029,923,715.00
Other equity instrument
Including: Preferred stock
Perpetual capital securities
Capital public reserve 2,806,493,904.30 2,806,493,904.30
Less: Inventory shares
Other comprehensive income -18,859,546.08 -20,881,462.63
Reasonable reserve 12,115,806.61 2,467,205.78
Surplus public reserve 441,218,691.48 441,218,691.48
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Changhong Meiling Co., Ltd. Semi-Annual Report 2023
Provision of general risk
Retained profit 1,174,611,076.18 909,249,365.79
Total owner’ s equity attributable to
5,445,503,647.49 5,168,471,419.72
parent company
Minority interests 367,105,767.99 370,740,249.72
Total owner’ s equity 5,812,609,415.48 5,539,211,669.44
Total liabilities and owner’ s equity 19,803,890,884.20 16,205,296,370.67
Legal Representative: Wu Dinggang
Person in charge of accounting works: Pang Haitao
Person in charge of accounting institute: Yang Jun
2. Balance Sheet of Parent Company
In RMB
Item June 30, 2023 January 1, 2023
Current assets:
Monetary funds 3,540,317,124.78 3,104,218,400.02
Trading financial assets 30,140,685.07 21,847,922.36
Derivative financial assets
Note receivable
Account receivable 1,441,902,097.39 1,145,561,769.05
Receivable financing 1,393,714,963.30 1,433,254,352.52
Accounts paid in advance 36,005,676.66 66,583,414.71
Other account receivable 63,707,764.31 29,903,408.82
Including: Interest receivable
Dividend receivable
Inventories 468,949,759.30 463,576,760.77
Contractual assets 46,970.75 46,970.75
Assets held for sale
Non-current assets maturing within one
292,055,597.22 170,167,638.89
year
Other current assets 12,317,946.46 165,510.80
Total current assets 7,279,158,585.24 6,435,326,148.69
Non-current assets:
Debt investment 182,033,111.11 121,543,750.00
Other debt investment
Long-term receivables
Long-term equity investments 1,860,476,731.21 1,856,359,424.33
103
Changhong Meiling Co., Ltd. Semi-Annual Report 2023
Investment in other equity instrument
Other non-current financial assets 608,527,275.52 608,527,275.52
Investment real estate 3,439,458.78 3,543,885.11
Fixed assets 1,119,839,034.70 1,127,344,454.50
Construction in progress 49,041,675.56 51,057,550.03
Productive biological assets
Oil and natural gas assets
Right-of-use assets 15,793,515.83 16,739,912.26
Intangible assets 466,120,745.38 467,075,020.10
Research and development costs 68,139,791.62 60,386,906.45
Goodwill
Long-term deferred expenses 13,065,918.47 11,686,542.49
Deferred income tax assets 126,890,037.15 127,720,739.83
Other non-current assets 638,649.57 638,649.57
Total non-current assets 4,514,005,944.90 4,452,624,110.19
Total assets 11,793,164,530.14 10,887,950,258.88
Current liabilities:
Short-term borrowings 850,185,752.01 618,091,666.67
Trading financial liability 42,195,286.32 13,537,472.81
Derivative financial liability
Notes payable 2,379,822,967.92 2,230,728,460.34
Account payable 1,810,626,157.25 1,531,945,762.15
Accounts received in advance
Contractual liability 104,082,063.96 121,216,205.12
Wage payable 46,305,781.03 64,869,503.19
Taxes payable 18,333,467.70 20,168,907.95
Other accounts payable 900,903,884.00 708,015,820.72
Including: Interest payable
Dividend payable 31,449,708.69 4,378,994.16
Liability held for sale
Non-current liabilities due within one
32,284,472.26 22,238,340.38
year
Other current liabilities 5,453,243.81 5,978,477.02
Total current liabilities 6,190,193,076.26 5,336,790,616.35
Non-current liabilities:
Long-term loans 128,000,000.00 148,000,000.00
Bonds payable
Including: Preferred stock
104
Changhong Meiling Co., Ltd. Semi-Annual Report 2023
Perpetual capital securities
Lease liability 15,179,183.43 15,861,027.13
Long-term account payable
Long term employee compensation
7,799,060.35 7,184,302.85
payable
Accrued liabilities 7,785,977.55 7,785,977.55
Deferred income 79,205,880.66 84,762,685.97
Deferred income tax liabilities 8,656,161.82 11,153,985.85
Other non-current liabilities
Total non-current liabilities 246,626,263.81 274,747,979.35
Total liabilities 6,436,819,340.07 5,611,538,595.70
Owners’ equity:
Share capital 1,029,923,715.00 1,029,923,715.00
Other equity instrument
Including: Preferred stock
Perpetual capital securities
Capital public reserve 2,740,508,510.57 2,740,508,510.57
Less: Inventory shares
Other comprehensive income
Special reserve 2,231,892.40 687,069.38
Surplus reserve 441,000,525.80 441,000,525.80
Retained profit 1,142,680,546.30 1,064,291,842.43
Total owner’s equity 5,356,345,190.07 5,276,411,663.18
Total liabilities and owner’s equity 11,793,164,530.14 10,887,950,258.88
Legal Representative: Wu Dinggang
Person in charge of accounting works: Pang Haitao
Person in charge of accounting institute: Yang Jun
3. Consolidated Profit Statement
In RMB
Item Semi-annual of 2023 Semi-annual of 2022
I. Total operating income 12,828,694,323.57 10,224,503,551.19
Including: Operating income 12,828,694,323.57 10,224,503,551.19
Interest income
Insurance gained
Commission charge and commission
income
105
Changhong Meiling Co., Ltd. Semi-Annual Report 2023
II. Total operating cost 12,396,558,239.03 10,156,306,873.88
Including: Operating cost 11,178,914,075.83 9,061,080,531.06
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 98,025,766.62 79,701,444.29
Sales expense 786,493,259.32 666,066,309.98
Administrative expense 182,962,865.60 164,132,141.97
R&D expense 265,176,197.93 248,112,774.54
Financial expense -115,013,926.27 -62,786,327.96
Including: Interest expenses 13,185,503.15 16,913,382.96
Interest income 83,240,562.07 66,581,155.37
Add: Other income 32,328,256.66 48,325,391.81
Investment income (Loss is listed with
14,377,940.05 13,816,261.75
“-”)
Including: Investment income on
12,544,969.44 8,971,315.55
affiliated company and joint venture
The termination of income recognition
for financial assets measured by -14,192,040.21 -10,198,142.54
amortized cost
Exchange income (Loss is listed with
“-”)
Net exposure hedging income (Loss is
listed with “-”)
Income from change of fair value (Loss
-56,428,183.43 3,562,737.04
is listed with “-”)
Loss of credit impairment (Loss is listed
-41,081,589.83 -50,466,619.13
with “-”)
Losses of devaluation of asset (Loss is
-18,167,335.89 -29,791,822.84
listed with “-”)
Income from assets disposal (Loss is
8,358,775.10
listed with “-”)
III. Operating profit (Loss is listed with
363,165,172.10 62,001,401.04
“-”)
Add: Non-operating income 10,704,019.80 2,910,887.79
Less: Non-operating expense 3,014,799.22 2,332,960.83
IV. Total profit (Loss is listed with “-”) 370,854,392.68 62,579,328.00
Less: Income tax expense 925,010.04 -10,115,573.46
V. Net profit (Net loss is listed with “-”) 369,929,382.64 72,694,901.46
(i) Classify by business continuity
1.continuous operating net profit (net 369,929,382.64 72,694,901.46
106
Changhong Meiling Co., Ltd. Semi-Annual Report 2023
loss listed with ‘-”)
2.termination of net profit (net loss listed
with ‘-”)
(ii) Classify by ownership
1.Net profit attributable to owner’s of
358,054,844.74 60,375,199.25
parent company
2.Minority shareholders’ gains and losses 11,874,537.90 12,319,702.21
VI. Net after-tax of other comprehensive
2,267,837.82 161,477.79
income
Net after-tax of other comprehensive
income attributable to owners of parent 2,021,916.55 61,187.61
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 subsequently 2,021,916.55 61,187.61
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 2,021,916.55 61,187.61
statements
7.Other
Net after-tax of other comprehensive
income attributable to minority 245,921.27 100,290.18
shareholders
VII. Total comprehensive income 372,197,220.46 72,856,379.25
Total comprehensive income attributable
360,076,761.29 60,436,386.86
to owners of parent Company
Total comprehensive income attributable
12,120,459.17 12,419,992.39
to minority shareholders
VIII. Earnings per share:
(i) Basic earnings per share 0.3477 0.0582
(ii) Diluted earnings per share 0.3477 0.0582
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
107
Changhong Meiling Co., Ltd. Semi-Annual Report 2023
Legal Representative: Wu Dinggang
Person in charge of accounting works: Pang Haitao
Person in charge of accounting institute: Yang Jun
4. Profit Statement of Parent Company
Item Semi-annual of 2023 Semi-annual of 2022
I. Operating income 4,338,699,541.92 3,276,506,161.47
Less: Operating cost 3,954,954,574.25 3,060,604,345.52
Taxes and surcharge 36,432,651.42 27,794,762.55
Sales expenses 94,839,586.49 80,728,268.23
Administration expenses 49,060,555.60 53,782,990.89
R&D expenses 118,815,372.05 108,366,509.30
Financial expenses -36,066,516.62 -22,635,899.49
Including: Interest expenses 12,503,638.74 16,599,488.01
Interest income 39,678,411.29 36,123,851.00
Add: Other income 10,946,996.56 21,184,281.25
Investment income (Loss is listed with “-”) 68,376,405.75 47,530,171.27
Including: Investment income on affiliated
11,539,929.52 5,509,596.07
Company and joint venture
The termination of income recognition for
financial assets measured by amortized -4,223,097.22 -1,663,033.71
cost (Loss is listed with “-”)
Net exposure hedging income (Loss is
listed with “-”)
Changing income of fair value (Loss is
-20,365,050.80 1,369,068.05
listed with “-”)
Loss of credit impairment (Loss is listed
-7,182,062.31 -7,829,056.61
with “-”)
Losses of devaluation of asset (Loss is
-808,792.91 -1,325,668.27
listed with “-”)
Income on disposal of assets (Loss is listed
8,344,824.89
with “-”)
II. Operating profit (Loss is listed with “-”) 171,630,815.02 37,138,805.05
Add: Non-operating income 496,859.54 857,194.10
Less: Non-operating expense 2,712,957.69 1,088,570.22
III. Total Profit (Loss is listed with “-”) 169,414,716.87 36,907,428.93
Less: Income tax -1,667,121.35 -16,609,478.22
IV. Net profit (Net loss is listed with “-”) 171,081,838.22 53,516,907.15
(i) continuous operating net profit (net loss
171,081,838.22 53,516,907.15
listed with ‘-”)
(ii) termination of net profit (net loss listed
with ‘-”)
V. Net after-tax of other comprehensive
income
108
Changhong Meiling Co., Ltd. Semi-Annual Report 2023
(i) Other comprehensive income items
which will not be reclassified subsequently
to profit of loss
1.Changes of the defined benefit plans that
re-measured
2.Other comprehensive income under
equity method that cannot be transfer to
gain/loss
3.Change of fair value of investment in
other equity instrument
4.Fair value change of enterprise's credit
risk
5. Other
(ii) Other comprehensive income items
which will be reclassified subsequently to
profit or loss
1.Other comprehensive income under
equity method that can transfer to gain/loss
2.Change of fair value of other debt
investment
3.Amount of financial assets re-classify to
other comprehensive income
4.Credit impairment provision for other
debt investment
5.Cash flow hedging reserve
6.Translation differences arising on
translation of foreign currency financial
statements
7.Other
VI. Total comprehensive income 171,081,838.22 53,516,907.15
VII. Earnings per share:
(i) Basic earnings per share 0.1661 0.0516
(ii) Diluted earnings per share 0.1661 0.0516
Legal Representative: Wu Dinggang
Person in charge of accounting works: Pang Haitao
Person in charge of accounting institute: Yang Jun
5. Consolidated Cash Flow Statement
In RMB
Item Semi-annual of 2023 Semi-annual of 2022
I. Cash flows arising from operating
activities:
Cash received from selling commodities
12,198,688,836.73 10,312,619,575.60
and providing labor services
Net increase of customer deposit and
interbank deposit
Net increase of loan from central bank
Net increase of capital borrowed from
other financial institution
109
Changhong Meiling Co., Ltd. Semi-Annual Report 2023
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 335,722,174.27 379,915,276.10
Other cash received concerning
45,885,272.47 72,807,336.47
operating activities
Subtotal of cash inflow arising from
12,580,296,283.47 10,765,342,188.17
operating activities
Cash paid for purchasing commodities
9,633,823,103.98 8,685,143,427.78
and receiving labor service
Net increase of customer loans and
advances
Net increase of deposits in central bank
and interbank
Cash paid for original insurance contract
compensation
Net increase of capital lent
Cash paid for interest, commission
charge and commission
Cash paid for bonus of guarantee slip
Cash paid to/for staff and workers 969,995,100.78 859,700,605.67
Taxes paid 220,348,189.39 254,144,466.19
Other cash paid concerning operating
345,610,079.51 391,300,471.18
activities
Subtotal of cash outflow arising from
11,169,776,473.66 10,190,288,970.82
operating activities
Net cash flows arising from operating
1,410,519,809.81 575,053,217.35
activities
II. Cash flows arising from investing
activities:
Cash received from recovering
530,000,000.00 221,539,824.00
investment
Cash received from investment income 29,194,568.79 17,907,264.72
Net cash received from disposal of fixed,
2,580,708.68 15,074,662.60
intangible and other long-term assets
Net cash received from disposal of
subsidiaries and other units
Other cash received concerning investing
83,960,584.77 65,647,218.13
activities
Subtotal of cash inflow from investing
645,735,862.24 320,168,969.45
activities
Cash paid for purchasing fixed,
112,867,755.64 132,916,669.27
intangible and other long-term assets
Cash paid for investment 990,000,000.00 1,024,040,000.00
Net increase of mortgaged loans
110
Changhong Meiling Co., Ltd. Semi-Annual Report 2023
Net cash received from subsidiaries and
other units obtained
Other cash paid concerning investing
14,291,587.29 7,635,033.86
activities
Subtotal of cash outflow from investing
1,117,159,342.93 1,164,591,703.13
activities
Net cash flows arising from investing
-471,423,480.69 -844,422,733.68
activities
III. Cash flows arising from financing
activities:
Cash received from absorbing
investment
Including: Cash received from absorbing
minority shareholders’ investment by
subsidiaries
Cash received from loans 738,227,027.56 647,040,918.37
Other cash received concerning
246,707,138.50 84,181.37
financing activities
Subtotal of cash inflow from financing
984,934,166.06 647,125,099.74
activities
Cash paid for settling debts 543,000,000.00 490,000,000.00
Cash paid for dividend and profit
94,160,552.96 76,995,651.40
distributing or interest paying
Including: Dividend and profit of
16,677,010.63 21,318,560.00
minority shareholder paid by subsidiaries
Other cash paid concerning financing
160,042,182.97 432,350,094.27
activities
Subtotal of cash outflow from financing
797,202,735.93 999,345,745.67
activities
Net cash flows arising from financing
187,731,430.13 -352,220,645.93
activities
IV. Influence on cash and cash
equivalents due to fluctuation in 5,527,412.31 19,041,476.23
exchange rate
V. Net increase of cash and cash
1,132,355,171.56 -602,548,686.03
equivalents
Add: Balance of cash and cash
6,113,222,069.76 5,840,194,931.57
equivalents at the period -begin
VI. Balance of cash and cash equivalents
7,245,577,241.32 5,237,646,245.54
at the period -end
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 Semi-annual of 2023 Semi-annual of 2022
I. Cash flows arising from operating
activities:
Cash received from selling commodities
3,881,403,178.06 3,474,091,634.50
and providing labor services
Write-back of tax received 105,626,324.39 130,797,515.16
111
Changhong Meiling Co., Ltd. Semi-Annual Report 2023
Other cash received concerning
11,635,429.61 26,282,682.89
operating activities
Subtotal of cash inflow arising from
3,998,664,932.06 3,631,171,832.55
operating activities
Cash paid for purchasing commodities
3,259,367,184.55 3,359,375,348.84
and receiving labor service
Cash paid to/for staff and workers 253,472,494.63 238,053,008.99
Taxes paid 49,530,385.16 27,088,361.68
Other cash paid concerning operating
89,990,627.33 113,679,202.41
activities
Subtotal of cash outflow arising from
3,652,360,691.67 3,738,195,921.92
operating activities
Net cash flows arising from operating
346,304,240.39 -107,024,089.37
activities
II. Cash flows arising from investing
activities:
Cash received from recovering
1,539,824.00
investment
Cash received from investment income 74,682,585.15 51,118,076.00
Net cash received from disposal of fixed,
2,534,831.90 15,055,871.00
intangible and other long-term assets
Net cash received from disposal of
subsidiaries and other units
Other cash received concerning investing
38,996,739.61 36,717,526.66
activities
Subtotal of cash inflow from investing
116,214,156.66 104,431,297.66
activities
Cash paid for purchasing fixed,
76,197,096.37 94,314,583.83
intangible and other long-term assets
Cash paid for investment 180,000,000.00 440,000,000.00
Net cash received from subsidiaries and
other units obtained
Other cash paid concerning investing
13,796,171.19 2,906,095.09
activities
Subtotal of cash outflow from investing
269,993,267.56 537,220,678.92
activities
Net cash flows arising from investing
-153,779,110.90 -432,789,381.26
activities
III. Cash flows arising from financing
activities:
Cash received from absorbing
investment
Cash received from loans 738,227,027.56 612,040,918.37
Other cash received concerning
95,587,946.50 182,953,531.16
financing activities
Subtotal of cash inflow from financing
833,814,974.06 794,994,449.53
activities
Cash paid for settling debts 518,000,000.00 480,000,000.00
Cash paid for dividend and profit
76,787,308.98 55,402,489.41
distributing or interest paying
Other cash paid concerning financing
48,994,977.36 46,535,119.44
activities
Subtotal of cash outflow from financing
643,782,286.34 581,937,608.85
activities
Net cash flows arising from financing
190,032,687.72 213,056,840.68
activities
IV. Influence on cash and cash 2,973,726.15 7,291,862.96
112
Changhong Meiling Co., Ltd. Semi-Annual Report 2023
equivalents due to fluctuation in
exchange rate
V. Net increase of cash and cash
385,531,543.36 -319,464,766.99
equivalents
Add: Balance of cash and cash
3,086,968,775.61 3,414,961,989.34
equivalents at the period -begin
VI. Balance of cash and cash equivalents
3,472,500,318.97 3,095,497,222.35
at the period -end
Legal Representative: Wu Dinggang
Person in charge of accounting works: Pang Haitao
Person in charge of accounting institute: Yang Jun
113
Changhong Meiling Co., Ltd. Semi-Annual Report 2023
7. Statement of Changes in Owners’ Equity (Consolidated)
This Period
In RMB
Semi-annual of 2023
Owners’ equity attributable to the parent Company
Other
equity instrument
Item Perp Less: Total
Pref etual Other Minority
Share Capital Invent Reasonable Provision of owners’
erre capit Ot comprehensive Surplus reserve Retained profit Other Subtotal interests
capital reserve ory reserve general risk equity
d al he income
shares
stoc secu r
k ritie
s
I. The ending
1,029,923, 2,806,493, 5,168,286, 370,748,395 5,539,035,
balance of the -20,881,462.63 2,467,205.78 441,201,471.98 909,082,037.66
previous year 715.00 904.30 872.09 .26 267.35
Add: Changes
184,547.6 176,402.0
of accounting 17,219.50 167,328.13 -8,145.54
policy 3 9
Error
correction of
the last period
Enterprise
combine
under the
same control
Other
II. The
beginning 1,029,923, 2,806,493, 5,168,471, 370,740,249 5,539,211,
-20,881,462.63 2,467,205.78 441,218,691.48 909,249,365.79
balance of the 715.00 904.30 419.72 .72 669.44
current year
III. Increase/ 2,021,916.55 9,648,600.83 265,361,710.39 277,032,2 - 273,397,7
114
Changhong Meiling Co., Ltd. Semi-Annual Report 2023
Decrease in 27.77 3,634,481.7 46.04
the period 3
(Decrease is
listed with
“-”)
(i) Total
360,076,7 12,120,459. 372,197,2
comprehensiv 2,021,916.55 358,054,844.74
e income 61.29 17 20.46
(ii) Owners’
devoted and
decreased
capital
1.Common
shares
invested by
shareholders
2. Capital
invested by
holders of
other equity
instruments
3. Amount
reckoned into
owners equity
with share-
based
payment
4. Other
- - -
(iii) Profit
-92,693,134.35 92,693,13 16,677,010. 109,370,1
distribution
4.35 63 44.98
1. Withdrawal
of surplus
reserves
2. Withdrawal
of general risk
provisions
3. Distribution -92,693,134.35 - - -
115
Changhong Meiling Co., Ltd. Semi-Annual Report 2023
for owners (or 92,693,13 16,677,010. 109,370,1
shareholders) 4.35 63 44.98
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
comprehensiv
e income
6. Other
(v)
9,648,600. 10,570,67
Reasonable 9,648,600.83 922,069.73
reserve 83 0.56
1. Withdrawal 15,558,156.14 15,558,15 1,133,609.0 16,691,76
116
Changhong Meiling Co., Ltd. Semi-Annual Report 2023
in the report 6.14 6 5.20
period
2. Usage in
5,909,555. 6,121,094.
the report 5,909,555.31 211,539.33
period 31 64
(vi) Others
IV. Balance at
1,029,923, 2,806,493, 1,174,611,076.1 5,445,503, 367,105,767 5,812,609,
the end of the -18,859,546.08 12,115,806.61 441,218,691.48
period 715.00 904.30 8 647.49 .99 415.48
Legal Representative: Wu Dinggang Person in charge of accounting works: Pang Haitao Person in charge of accounting institute: Yang Jun
Last Period
In RMB
Semi-annual of 2022
Owners’ equity attributable to the parent Company
Other
equity instrument
Item Perpet Reaso Provisio Minority Total owners’
Other
Share ual Capital Less: Inventory nable Surplus n of interests equity
comprehensive Retained profit Other Subtotal
capital Preferred capita reserve shares reserv reserve general
Other income
stock l e risk
securi
ties
I. The ending balance of 1,044,597,8 2,682,829, 423,111,236. 4,837,334,400 157,456,980.8
26,430,571.38 -20,903,270.57 734,129,724.00 4,994,791,381.05
the previous year 81.00 400.26 90 .21 4
Add: Changes of
accounting policy
Error correction of the
last period
Enterprise combine
under the same control
Other
117
Changhong Meiling Co., Ltd. Semi-Annual Report 2023
II. The beginning
1,044,597,8 2,682,829, 423,111,236. 4,837,334,400 157,456,980.8
balance of the current 26,430,571.38 -20,903,270.57 734,129,724.00 4,994,791,381.05
81.00 400.26 90 .21 4
year
III. Increase/ Decrease in - -
the period (Decrease is 14,674,166. 12,493,667 -26,430,571.38 61,187.61 8,879,013.50 8,202,938.76 -8,898,567.61 -695,628.85
listed with “-”) 00 .73
(i) Total comprehensive
61,187.61 60,375,199.25 60,436,386.86 12,419,992.39 72,856,379.25
income
- -
(ii) Owners’ devoted and
14,674,166. 12,493,667 -26,430,571.38 -737,262.35 -737,262.35
decreased capital
00 .73
- -
1.Common shares
14,674,166. 12,493,667 -26,430,571.38 -737,262.35 -737,262.35
invested by shareholders
00 .73
2. Capital invested by
holders of other equity
instruments
3. Amount reckoned into
owners equity with
share-based payment
4. Other
- -
(iii) Profit distribution -51,496,185.75 -72,814,745.75
51,496,185.75 21,318,560.00
1. Withdrawal of surplus
reserves
2. Withdrawal of general
risk provisions
3. Distribution for - -
-51,496,185.75 -72,814,745.75
owners (or shareholders) 51,496,185.75 21,318,560.00
4. Other
(iv) Carrying forward
internal owners’ equity
1. Capital reserves
conversed to capital
(share capital)
2. Surplus reserves
conversed to capital
118
Changhong Meiling Co., Ltd. Semi-Annual Report 2023
(share capital)
3. Remedying loss with
surplus reserve
4. Carry-over retained
earnings from the
defined benefit plans
5. Carry-over retained
earnings from other
comprehensive income
6. Other
(v) Reasonable reserve
1. Withdrawal in the
report period
2. Usage in the report
period
(vi) Others
IV. Balance at the end of 1,029,923,7 2,670,335, 423,111,236. 4,845,537,338 148,558,413.2
-20,842,082.96 743,008,737.50 4,994,095,752.20
the period 15.00 732.53 90 .97 3
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
Semi-annual of 2023
Other Othe
equity instrument Less: r
Item Perpetua Invent Reasonable Othe
Share capital Capital reserve
Preferre l capital ory com reserve
Surplus reserve Retained profit
r
Total owners’ equity
Other shares preh
d stock securitie
s ensi
119
Changhong Meiling Co., Ltd. Semi-Annual Report 2023
ve
inco
me
I. The ending balance of the
1,029,923,715.00 2,740,508,510.57 687,069.38 440,983,306.30 1,064,136,866.98 5,276,239,468.23
previous year
Add: Changes of accounting
17,219.50 154,975.45 172,194.95
policy
Error correction of the last
period
Other
II. The beginning balance of the
1,029,923,715.00 2,740,508,510.57 687,069.38 441,000,525.80 1,064,291,842.43 5,276,411,663.18
current year
III. Increase/ Decrease in the period
1,544,823.02 78,388,703.87 79,933,526.89
(Decrease is listed with “-”)
(i) Total comprehensive income 171,081,838.22 171,081,838.22
(ii) Owners’ devoted and decreased
capital
1.Common shares invested by
shareholders
2. Capital invested by holders of
other equity instruments
3. Amount reckoned into owners
equity with share-based payment
4. Other
(iii) Profit distribution -92,693,134.35 -92,693,134.35
1. Withdrawal of surplus reserves
2. Distribution for owners (or
-92,693,134.35 -92,693,134.35
shareholders)
3. Other
(iv) Carrying forward internal
owners’ equity
1. Capital reserves conversed to
capital (share capital)
120
Changhong Meiling Co., Ltd. Semi-Annual Report 2023
2. Surplus reserves conversed to
capital (share capital)
3. Remedying loss with surplus
reserve
4. Carry-over retained earnings from
the defined benefit plans
5. Carry-over retained earnings from
other comprehensive income
6. Other
(v) Reasonable reserve 1,544,823.02 1,544,823.02
1. Withdrawal in the report period 4,278,881.39 4,278,881.39
2. Usage in the report period 2,734,058.37 2,734,058.37
(vi) Others
IV. Balance at the end of the period 1,029,923,715.00 2,740,508,510.57 2,231,892.40 441,000,525.80 1,142,680,546.30 5,356,345,190.07
Legal Representative: Wu Dinggang Person in charge of accounting works: Pang Haitao Person in charge of accounting institute: Yang Jun
Last period
In RMB
Semi-annual of 2022
Other
equity instrument Less: Other
Item Perpetua Reasonabl Othe
Share capital Capital reserve Inventory comprehensive Surplus reserve Retained profit Total owners’ equity
Preferre l capital shares e reserve r
Other income
d stock securitie
s
I. The ending balance of the
1,044,597,881.00 2,753,002,178.30 26,430,571.38 422,893,071.22 952,820,937.05 5,146,883,496.19
previous year
Add: Changes of accounting
policy
Error correction of the last
period
121
Changhong Meiling Co., Ltd. Semi-Annual Report 2023
Other
II. The beginning balance of the
1,044,597,881.00 2,753,002,178.30 26,430,571.38 422,893,071.22 952,820,937.05 5,146,883,496.19
current year
III. Increase/ Decrease in the
-14,674,166.00 -12,493,667.73 -26,430,571.38 2,020,721.40 1,283,459.05
period (Decrease is listed with “-”)
(i) Total comprehensive income 53,516,907.15 53,516,907.15
(ii) Owners’ devoted and decreased
-14,674,166.00 -12,493,667.73 -26,430,571.38 -737,262.35
capital
1.Common shares invested by
-14,674,166.00 -12,493,667.73 -26,430,571.38 -737,262.35
shareholders
2. Capital invested by holders of
other equity instruments
3. Amount reckoned into owners
equity with share-based payment
4. Other
(iii) Profit distribution -51,496,185.75 -51,496,185.75
1. Withdrawal of surplus reserves
2. Distribution for owners (or
-51,496,185.75 -51,496,185.75
shareholders)
3. Other
(iv) Carrying forward internal
owners’ equity
1. Capital reserves conversed to
capital (share capital)
2. Surplus reserves conversed to
capital (share capital)
3. Remedying loss with surplus
reserve
4. Carry-over retained earnings
from the defined benefit plans
5. Carry-over retained earnings
from other comprehensive income
6. Other
122
Changhong Meiling Co., Ltd. Semi-Annual Report 2023
(v) Reasonable reserve
1. Withdrawal in the report period
2. Usage in the report period
(vi) Others
IV. Balance at the end of the period 1,029,923,715.00 2,740,508,510.57 422,893,071.22 954,841,658.45 5,148,166,955.24
Legal Representative: Wu Dinggang Person in charge of accounting works: Pang Haitao Person in charge of accounting institute: Yang Jun
123
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
I. Company profile
Changhong Meiling Co., Ltd (hereinafter referred to as “the Company”) ，originally named as Hefei Meiling
Co., Ltd. is an incorporated Company established and reorganized by Hefei Meiling Refrigerator General
Factory and approved on June 12th 1992 through [WanTiGaiHanZi (1992) No.039] issued by original
Mechanism Reform Committee of Anhui Province. On August 30th 1993, through Anhui Provincial
Government [Wanzhenmi (1993) No.166] and re-examination of China Securities Regulatory Commission,
the Company made first public issue for 30 million A shares and the Company was listed on Oct. 18th, 1993 in
Shenzhen Stock Exchange. On August 13th, 1996, the Company was approved to issue 100 million B shares to
investors abroad through [ZhengWeiFa (1996) No.26] issued by China Securities Regulatory Commission.
The Company went public in Shenzhen Stock Exchange on August 28th, 1996.
State-owned Assets Supervision & Administration Commission of the State Council approved such transfers
with Document Guozi Chanquan (2007) No.253 Reply on Matters of Hefei Meiling Group Holdings Limited
Transferring Partial State-owned Ownership, Hefei Meiling Group Holdings Limited (hereinafter referred to
as Meiling Group) transferred its holding 37,852,683 shares in 82,852,683 state-owned shares of the Company
to Sichuan Changhong Electronic Group Co., Ltd (hereinafter referred to as Changhong Group), other
45,000,000 shares to Sichuan Changhong Electric Co. Ltd (hereinafter referred to as Sichuan Changhong). On
Aug 15, 2007, the above ownership was transferred and Cleaning Corporation Limited.
On 27 August 2007, State-owned Assets Supervision & Administration Commission of Anhui Provincial
Government replied with Document [WGZCQH (2007) No.309] Reply on “Related Matters of Share Merger
Reform of Hefei Meiling Co., Ltd.”, agreed the Company’s ownership split reform plan. The Company made
consideration that non-tradable share holders deliver 1.5 shares to A share holders per 10 shares, and original
Meiling Group made prepayment 3,360,329 shares for some non-tradable share holders as consideration for
split reform plan.
On 29 May 2008, concerning 34,359,384 state-owned shares (including 3,360,329 shares paid for other non-
tradable shareholders by original Meiling Group in share reform) held by original Meiling Group, the “Notice
of Freely Transfer of Meiling Electrics Equity held by Meiling Group”[HGZCQ(2008) No. 59] issued from
State-owned Assets Supervision & Administration Commission of Hefei Municipal, agrees to transfer the
above said shares to Hefei Xingtai Holding Group Co., Ltd.(“Xingtai Holding Co.,”) for free. On 7 August
2008, the “Reply of Transfer Freely of Part of the Shares of Hefei Meiling Co., Ltd. held by State-owned
shareholders” [GZCQ (2007) No. 752] issued by SASAC, agrees the above said transferring.
On October 29, 2008, Changhong Group signed Agreement on Equity Transfer of Hefei Meiling Co., Ltd with
Sichuan Changhong, in which 32,078,846 tradable A-shares with conditional subscription of the Company
(accounting for 7.76% in total shares) held by Changhong Group. On 23 December 2008, “Reply of Transfer
Freely of Part of the Shares of Hefei Meiling Co., Ltd. held by State-owned shareholders” [GZCQ (2008) No.
1413] issued by SASAC agrees the above said share transferring.
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,
124
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
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.
125
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
Ended as June 30, 2023, 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 14.39% in total shares. Specific capital structure is as follows:
Type of stock Quantity Proportion
(I)Restricted shares 8,111,315 0.79%
1. State-owned shares
2. State-owned legal person’s shares 1,141,053 0.11%
3. Other domestic shares 5,280,369 0.51%
Including: Domestic legal person’s shares 3,363,539 0.33%
Domestic natural person’s shares 1,916,830 0.18%
4. Foreign shares 1,689,893 0.17%
Including: Overseas legal person’s shares
Overseas natural person’s shares 1,689,893 0.17%
(II)Unrestricted shares 1,021,812,400 99.21%
1. RMB Ordinary shares 875,312,459 84.99%
2. Domestically listed foreign shares 146,499,941 14.22%
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
126
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise 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.
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
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.
127
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
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.
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
128
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
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
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
129
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
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 cash on hand and deposits that can be
readily with drawn on demand. Cash equivalents are short-term, highly liquid investments held by the Group,
that are readily convertible to known amounts of cash and which are subject to an in significant risk of changes
in value.
9. Foreign currency business and foreign currency financial statement conversion
(1) Foreign currency business
As for the foreign currency business, the Company converts the foreign currency amount into RMB amount
pursuant to the spot exchange rate as of the business day. As at the balance sheet date, monetary items
expressed by foreign currency are converted into RMB pursuant to the spot exchange rate as of the balance
sheet date. The conversion difference occurred is recorded into prevailing gains and losses, other than the
disclosure which is made according to capitalization rules for the exchange difference occurred from the special
foreign currency borrowings borrowed for constructing and producing the assets satisfying condition of
capitalization. As for the foreign currency non-monetary items measured by fair value, the amount is then
converted into RMB according to the spot exchange rate as of the confirmation day for fair value. And the
130
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
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.
(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.
131
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
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
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,
132
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
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.
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.
133
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
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
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.
134
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
(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
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
135
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
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
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
136
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
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
Accounting treatment methods for financial instrument impairment. The Company calculates the expected
credit loss of contract assets on the balance sheet date, if the expected credit loss is greater than the book value
of provision for impairment of contract assets, the Company shall recognize the difference as an impairment
loss, debiting the "asset impairment loss" and crediting the "contract asset impairment provision". On the
contrary, the Company shall recognize the difference as an impairment gain and keep the opposite accounting
records.
If the Company actually incurs credit losses and determines that the relevant contract assets cannot be
recovered, for those approved to be written off, debit the "contract asset impairment reserve" and credit the
"contracted asset" based on the approved write-off amount. If the written-off amount is greater than the
provision for loss that has been withdrawn, the "asset impairment loss" is debited based on the difference.
13. Contract cost
137
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
(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
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.
138
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
For long-term equity investments acquired through business combination under common control, the initial
investment cost shall be the acquirer’s share of the carrying amount of net assets of the acquiree as of the
combination date as reflected in the consolidated financial statement of the ultimate controller. If the carrying
amount of net assets of the acquiree as of the combination date is negative, the investment cost of long-term
equity investment shall be zero. For long-term equity investment acquired through business combination not
under common control, the initial investment cost shall be the combination cost.
Excluding the long-term equity investment acquired through business combination, there is also a king of long-
term equity investment acquired through cash payment, for which the actual payment for the purchase shall be
investment cost; If Long-term equity investments are acquired by issuing equity securities, fair value of issuing
equity investment shall be investment cost; for Long-term equity investments which are invested by investors,
the agreed price in investment contract or agreement shall be investment cost; and for long-term equity
investment which is acquired through debt reorganization and non-monetary assets exchange, regulations of
relevant accounting standards shall be referred to for confirming investment cost.
The Company adopts cost method for investment in subsidiaries, makes calculation for investments in joint-
ventures and associates by equity method.
When calculated by cost method, long-term equity investment is priced according to its investment cost, and
cost of the investment is adjusted when making additional investment or writing off investment; When
calculated by equity method, current investment gains and losses represent the proportion of the net gains and
losses realized by the invested unit in current year attributable to or undertaken by the investor. When the
Company is believed to enjoy proportion of net gains and losses of invested unit, gains and losses attributable
to the Company according to its shareholding ratio is to computer out according to the accounting policy and
accounting period of the Company, on the basis of the fair value of various recognizable assets of the invested
unit as at the date of obtaining of the investment, after offset of gains and losses arising from internal
transactions with associates and joint-ventures, and finally to make confirmation after adjustment of net profit
of the invested unit. Confirmation on gains and losses from the long-term equity investment in associates and
joint-ventures held by the Company prior to the first execution day, could only stand up with the precedent
condition that debit balance of equity investment straightly amortized according to its original remaining term
has already been deducted, if the aforementioned balance relating to the investment do exist.
In case that investor loses joint control or significant influence over investee due to disposal of part equity
interest investment, the remaining equity interest shall be calculated according to Accounting Standards for
Business Enterprise No.22-Recognition and Measurement of Financial Instrument. Difference between the fair
value of the remaining equity interest as of the date when loss of joint control or significant influence and the
carrying value is included in current gains and losses. Other comprehensive income recognized in respect of
the original equity interest investment under equity method should be treated according to the same basis which
139
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
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 Depreciation rate per
Category Depreciation term(Year)
value (%) annual (%)
House and buildings 30-40 years 4%-5% 2.375%-3.20%
When investment real estate turns to be used by holders, it shall switch to fixed assets or intangible assets
commencing from the date of such turning. And when self-used real estate turns to be leased out for rental or
additional capital, the fixed assets or intangible assets shall switch to investment real estate commencing from
the date of such turning. In situation of switch, the carrying value before the switch shall be deemed as the
credit value after the switch.
When investment real estate is disposed, or out of utilization forever and no economic benefit would be
predicted to obtain through the disposal, the Company shall terminate recognition of such investment real
140
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
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:
Predicted rate of salvage Depreciation rate per
No. Category Depreciation term
value year
1 House and buildings 30-40 years 4%-5% 2.375%-3.20%
2 Machinery equipment 10-14 years 4%-5% 6.786%-9.60%
3 Transport equipment 5-12 years 4%-5% 7.92%-19.20%
4 Other equipment 8-12 years 4%-5% 7.92%-12.00%
141
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
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
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-term 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
142
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
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
As for expenditure for research and development, the Company classifies it into expenditure on research phase
and development phase, based on nature of the expenditure and that whether the final intangible assets formed
by research & development is of great uncertainty. Expenditure arising during research should be recorded in
current gains and losses upon occurrence; expenditure arising during development is confirmed as intangible
assets when satisfying the following conditions:
-Completions of the intangible assets make it available for application or sell in technology;
-Equipped with plan to complete the intangible asset and apply or sell it;
There is market for products produced with this intangible asset or the intangible asset itself;
-Have sufficient technology, financial resource and other resources to support development of the intangible
assets, and have ability to apply or sell the assets;
-Expenditure attributable to development of the intangible assets could be reliable measured.
Expenditure arising during development not satisfying the above conditions shall be recorded in current gains
and losses upon occurrence. Development expenditure which had been recorded in gains and losses in previous
period would not be recognized as assets in later period. Expenditure arising during development phase which
has been starting capitalization is listed in balance sheet as development expenditure, and transferred to
intangible assets since the project reaches at predicted utilization state.
143
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
22. Impairment of long-term assets
As at each balance sheet date, the Company has inspection on fixed assets, construction in process and
intangible assets with limited service life. When the following indications appear, assets may be impaired, and
the Company would have impairment test. As for goodwill and intangible assets which have uncertain service
life, no matter there is impairment or not, impairment test shall be conducted at the end of every year. If it is
hard to make test on recoverable amount of single asset, test is expected to make on the basis of the assets
group or assets group portfolio where such asset belongs to.
After impairment test, if the carrying value exceeds the recoverable amount of the asset, the balance is
recognized as impairment loss. As long as impairment loss of the aforementioned assets is recognized, it
couldn’t be switched back in later accounting periods. Recoverable amount of assets refers to the higher of fair
value of assets net disposal expense and present value of predicted cash flow of the asset.
Indications for impairment are as follows:
(1) Market value of asset drops a lot in current period, the drop scope is obviously greater than the predicted
drop due to move-on of times or normal utilization;
(2) Economy, technology or law environment where enterprise operates or market where asset is located will
have significant change in current or recent periods, which brings negative influence to enterprise;
(3) Market interest rate or returning rate of other market investments have risen in current period, which brings
influence in calculating discount rate of present value of predicted future cash flow of assets, which leads to a
great drop in recoverable amount of such assets;
(4) Evidence proving that asset is obsolete and out of time or its entity has been damaged;
(5) Asset has been or will be keep aside, terminating utilization or disposed advance;
(6) Internal report of enterprise shows that economic performance of asset has been or will be lower than
prediction, such as that net cash flow created by asset or operation profit (or loss) realized by asset is greatly
lower (or higher) than the predicted amount;
(7) Other indications showing possible impairment of assets
23. Contract liability
Contract liabilities reflect the Company's obligation to transfer goods to customers for consideration received
or receivable from customers. Before the Company transfers the goods to the customer, if the customer has
paid the contract consideration or the Company has obtained the right to unconditionally receive the contract
consideration, the contract liability is recognized based on the received or receivable amount at the earlier time
point of the actual payment by the customer and the payment due.
24. Goodwill
144
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
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.
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
145
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
according to the compensation standard passed by the staff representative conference, and the Company
confirms it as dismiss welfare and reckons it in current profits and losses. As the Company promises to adjust
the treatment for early retiring staff and workers with the increase of social basic cost of living allowances, the
discount elements will not be considered for calculating the dismiss welfare.
27.Lease liability
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
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.
146
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
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;
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.
147
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
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
deferred income tax assets and deferred income tax liabilities will be recognized. As of the balance sheet date,
148
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
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. For the confirmed
deferred income tax assets, the book value of deferred income tax assets shall be written down when it is
estimated that it is likely that sufficient taxable income will not be obtained to offset the deferred income tax
assets in the future. When sufficient taxable income is likely to be obtained, the amount written down will be
reversed.
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-term 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
149
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
lessee, re-evaluate and measure the present value of lease liabilities, and adjust the book value of the right-of-
use asset accordingly. If the book value of the right-of-use asset has been reduced to zero, but the lease liability
still needs to be further reduced, the lessee shall include the remaining amount in the corresponding expenses
for the current period.
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
150
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
such non-current assets or disposal group after their fair value less the selling expenses as the initial
measurement amount is recorded in the current profit or loss.
(3)In case of loss of control over the subsidiaries due to the sales of investment in subsidiaries, no matter
whether the Company retains part of the equity investment after selling investment in subsidiaries, the
investment in subsidiaries shall be classified as held for sale on an aggregate basis in the separate financial
statements of the parent company when the investment in subsidiaries proposed to be sold satisfies the
conditions for being classified as held for sale; and all the assets and liabilities of the subsidiary shall be
classified as held for sale in the consolidated financial statements.
(4)If the net amount of fair value of non-current assets held for sale less sales expense on subsequent balance
sheet date increases, the amount previously reduced for accounting shall be recovered and reverted from the
impairment loss recognized after the asset is classified under the category of held for sale, with the amount
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.
151
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
(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.
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.
152
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
(1) Inventory impairment provision
The Company's provision for impairment of inventories on the balance sheet date is the part of the net
realizable value lower than the cost of inventories. The net realizable value of the inventory of goods that are
directly used for sale, such as the goods in stock, the goods sent out, and the materials for sale, and the low-
consumption goods, shall be determined by the amount of the estimated selling price of the inventory minus
the estimated selling expenses and relevant taxes. The net realizable value of the material inventory held for
production is determined by the amount of the estimated selling price of the finished product produced minus
the estimated cost to be incurred at the time of completion, the estimated selling expenses and relevant taxes.
(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
153
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
The Company commits to repair the major spare parts of refrigerators sold through go-to-countryside
promotion activity for free for ten years. As to the maintenance expenses that may be increased arising from
such commitment, the Company has provided projected liabilities.
Taking into account the various uncertainties during the ten years, the Company considers no discount factor
of such projected liabilities. Instead, the Company reviews the parameters (probility, proportion, maintenance
expense per single set) based on the actual occurrence of maintenance expenses as of each balance sheet date.
If obvious change is found, the Company will adjust the projected liabilities according to the latest parameters
so as to reflect the best estimation.
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
Contents and reasons of changes in accounting policies Approval procedure Remark
On November 30, 2022, the Ministry of Finance issued the "Interpretation Relevant accounting policy
of Accounting Standards for Business Enterprises No. 16". When changes have been approved
154
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
Contents and reasons of changes in accounting policies Approval procedure Remark
preparing the financial statements for the half year of 2023, the company at the 32nd meeting of the 10th
implemented the relevant accounting standards interpretation and Board of Directors of the
processed them in accordance with relevant bridging regulations. Company
The names and amounts of the report items that are significantly affected are as follows:
Consolidated statement Parent company statement
Affected items 2022-12-31 2022-12-31 2023-1-1
Adjustment 2023-1-1 Adjustment
(before (before (after
amount (after change) amount
change) change) change)
Deferred income tax
156,630,537.43 4,935,157.87 161,565,695.30 125,037,558.04 2,683,181.79 127,720,739.83
assets
Deferred income tax
12,750,747.30 4,758,755.78 17,509,503.08 8,642,999.01 2,510,986.84 11,153,985.85
liabilities
Surplus public 441,201,471.98 17,219.50 441,218,691.48 440,983,306.30 17,219.50 441,000,525.80
Undistributed profit 909,082,037.66 167,328.13 909,249,365.79 1,064,136,866.98 154,975.45 1,064,291,842.43
Minority equity 370,748,395.26 -8,145.54 370,740,249.72
(2) Change of significant accounting estimates: N/A
(3) The implementation of new accounting standards or standard interpretations for the first time since 2023
involves adjusting the relevant items in the financial statements at the beginning of the year of the first
implementation
Explanation of the merger and adjustment of the parent company's balance sheet: Starting from January 1,
2023, the company will implement the "Interpretation of Accounting Standards for Business Enterprises No.
16", and adjust the retained earnings and other related financial statement items at the beginning of the year of
the first implementation based on the cumulative impact of the interpretation of the first implementation of the
standards. The specific adjustment details are shown in 40 and (1).
V. Taxation
1. Major taxes and tax rates
Tax (expenses) Tax (expenses) base Tax (expenses) rate
VAT Income from sales of goods and from processing 13%,9%,6%,5%,3%
Urban maintenance and
Turnover tax 5% or7%
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% or 12%
annual rent income
Land use tax Actual land area used 1 yuan/M2 to 15 yuan/M2
Description of taxpayers with different corporate income tax rates:
155
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
Name Income tax rate
Changhong Meiling Co., Ltd. 15%
Zhongke Meiling Cryogenic Technology Co., Ltd. 15%
Zhongshan Changhong Electric Co., Ltd. 15%
Sichuan Hongmei Intelligent Technology Co., Ltd. 15%
Mianyang Meiling Refrigeration Co., Ltd. 15%
Changhong Meiling Ridian Technology Co., Ltd. 15%
Ground Energy Heat Pump Tech. (Zhongshan) Co., Ltd. 15%
Hefei Meiling Nonferrous Metal Products Co., Ltd. 15%
Jiangxi Meiling Electric Appliance Co., Ltd. 15%
Sichuan Changhong Air-conditioner Co., Ltd. 15%
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%
Changhong Ruba 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-
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.
156
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
(4) The subsidiary Sichuan Hongmei Intelligent Technology Co., Ltd. has passed the qualification of high-tech
enterprise certification on 9 October 2021, and enjoys 15% rate for the income tax for State Hi-Tech Enterprise
for three years term.
(5) Subsidiary Mianyang Meiling Refrigeration Co., Ltd., belongs to the encouraged industry in the Industrial
Structure Adjustment Guidance Catalog and enjoys the preferential taxation policy of corporate income tax for
the Western Development, and the corporate income tax is levied at a reduced tax rate of 15%, valid until
December 31, 2030.
(6) The subsidiary Guangdong Changhong Meiling Ridian Technology Co., Ltd. has passed the
qualification of high-tech enterprise certification on 22 December 2022, and enjoys 15% rate for the income
tax for State Hi-Tech Enterprise for three years term.
(7) 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.
(8) The subsidiary Hefei Meiling Nonferrous Metal Products Co., Ltd. has passed the qualification of high-
tech enterprise certification on 18 September 2021, and enjoys 15% rate for the income tax for State Hi-Tech
Enterprise for three years term.
(9) The subsidiary Jiangxi Meiling Electric Appliance Co., Ltd. has passed the qualification of high-tech
enterprise certification on 4 November 2022, and enjoys 15% rate for the income tax for State Hi-Tech
Enterprise for three years term.
(10) The subsidiary Sichuan Changhong Air-conditioner Co., Ltd., belongs to the encouraged industry in the
Industrial Structure Adjustment Guidance Catalog and enjoys the preferential taxation policy of corporate
income tax for the Western Development, and the corporate income tax is levied at a reduced tax rate of 15%,
valid until December 31, 2030.
(11) The subsidiary Hebei Hongmao Daily Appliance Technology Co., Ltd. has passed the qualification of
high-tech enterprise certification on 18 September 2021, and enjoys 15% income tax rate for national payroll
technology enterprise for three years term.
(12) The subsidiary Anhui Tuoxing Technology Co., Ltd., Anhui Ling’an Medical Equipment Co., Ltd., Hefei
Meiling Wulian Technology Co., Ltd., Guangzhou Changhong Trading Co., Ltd. are in compliance with the
relevant standards for small and medium-sized enterprises with meager profits in the “Notice on matters related
to the implementation of preferential income tax policy to support the development of small & medium-size
enterprise and individual entrepreneurs” (Guoshui [2021] No. 8) and “Notice on Further Implementation of
Preferential Income Tax Policies for Small & Micro Enterprises (No.: 6 of 2023)” of the Ministry of Finance
and the State Administration of Taxation, and temporarily implements below policies: the part of annual
taxable income that does not exceed one million yuan is included in taxable income by 25% after a reduction,
and corporate income tax is paid at a tax rate of 20%, valid until December 31, 2024; while the part of annual
taxable income exceeds one million yuan but not exceeding three million yuan is included in taxable income
157
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
by 25% after a reduction, and corporate income tax is paid at a tax rate of 20%, which is valid until December
31, 2024.
(13) 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.
(14) 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, “period-
beginning” refers to Jan. 1, 2023; “period-end” refers to Jun. 30, 2023; “Current Period” refers to Jan. 1 to Jun.
30, 2023; “the last period” refers to Jan. 1 to Jun. 30, 2022; the currency is RMB.
1. Monetary fund
Item Ending balance Opening balance
Cash 35,553.71 21,243.42
Bank deposit 7,273,692,594.58 6,119,260,150.47
Other monetary fund 604,060,046.35 712,717,808.79
Interest receivable on deposit 9,455,584.13 7,422,576.45
Total 7,887,243,778.77 6,839,421,779.13
Including: total amount deposited in overseas 30,493,701.01 9,295,065.32
Total use of restricted funds 632,210,953.32 718,777,132.92
Other monetary fund:
Item Ending balance Opening balance
Cash deposit 603,498,782.91 712,177,743.52
Co-managed account funds 506,802.20 506,171.40
Union Pay online 54,461.24 33,893.87
Total 604,060,046.35 712,717,808.79
(1) At the end of Team, the funds deposited in Sichuan Changhong Group Finance Co., Ltd. (hereinafter
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, totalling
RMB3,692,770,838.31, of which RMB 2,351,440,000.00 was time deposit, RMB1,183,730,703.78 was
current deposit, and RMB 157,600,134.53 was the earnest money.
158
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
(2) The restricted monetary funds are the earnest money of RMB 603,498,782.91, the restricted balance of
the co-management account of RMB506,802.20, and the bank deposit of RMB 28,205,368.21 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 192,881,811.89 57,660,588.67
Including: Derivative financial assets 72,248,082.82 57,660,588.67
Principal and interest of wealth management products 120,633,729.07
Transactional financial assets in this period are caused by forward foreign exchange contracts, unconfirmed
firm commitment evaluation and new wealth management products.
3. Note receivable
(1) Notes endorsement or discount and undue on balance sheet date
N/A
(2) 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 75,254,715.65
Total 75,554,715.65
(3) Bad debt provision of note receivable that has been accrued, withdrawn, and reversed this year
N/A
(4) No note receivable actually written off in this year
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
895,845,148.80 30.62 140,437,086.19 15.68 755,408,062.61
bad debt provision by single item
Including: current payment with
827,188,790.93 28.27 112,043,400.74 13.55 715,145,390.19
related party
Account receivable with letter of
32,327,946.92 1.11 32,327,946.92
credit
159
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
Amount at year-end
Category Book balance Bad debt provision
Ratio Ratio Book value
Amount Amount
(%) (%)
Account receivable with single minor
amount but withdrawal single item 36,328,410.95 1.24 28,393,685.45 78.16 7,934,725.50
bad debt provision
Account receivable withdrawal bad
2,030,047,327.08 69.38 158,530,311.75 7.81 1,871,517,015.33
debt provision by portfolio
Including: account receivable of
209,090,087.00 7.15 37,951,059.38 18.15 171,139,027.62
engineering customers
Receivables other than engineering
1,820,957,240.08 62.23 120,579,252.37 6.62 1,700,377,987.71
customers
Total 2,925,892,475.88 100.00 298,967,397.94 10.22 2,626,925,077.94
Continued
Amount at year-begin
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 59,159,533.59 3.77 28,843,520.95 48.76 30,316,012.64
bad 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
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, 87 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) 20,993,865.75
More than 3 months and less than 6 months (6
18,706,778.91
months included)
160
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
Balance at year-end
Account age Bad debt
Book balance Provision ratio (%)
provision
Over 6 months and within one year (One year
49,497,042.61
included)
Over one year - within 2 years (2 years included) 97,118,733.29 19,423,746.66 20.00
Over 2 years - within 3 years (3 years included) 8,492,707.44 4,246,353.72 50.00
Over 3 years 14,280,959.00 14,280,959.00 100.00
Total 209,090,087.00 37,951,059.38 -
Continued
Balance at year-begin
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
B. Receivables other than engineering customers
Balance at year-end
Account age
Book balance Bad debt provision Provision ratio (%)
Within 3 months (3 months included) 1,628,734,258.41 16,287,342.58 1.00
More than 3 months and less than 6 months (6
32,679,767.59 3,267,976.76 10.00
months included)
Over 6 months and within one year (One year
13,861,990.09 2,772,398.02 20.00
included)
Over one year - within 2 years (2 years included) 68,867,704.09 34,433,852.05 50.00
Over 2 years - within 3 years (3 years included) 64,979,184.69 51,983,347.75 80.00
Over 3 years 11,834,335.21 11,834,335.21 100.00
Total 1,820,957,240.08 120,579,252.37 -
Continued
161
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise 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) 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
(2) By account age
Account age Balance at year-end Balance at year-begin
Within 3 months (3 months included) 2,394,643,994.46 839,113,924.70
More than 3 months and less than 6 months (6 months
104,895,819.62 319,861,920.01
included)
Over 6 months and within one year (One year included) 84,052,227.37 94,045,030.09
Over one year - within 2 years (2 years included) 203,369,644.26 241,992,516.95
Over 2 years - within 3 years (3 years included) 89,504,254.92 32,346,833.25
Over 3 years 49,426,535.25 38,203,610.15
Total 2,925,892,475.88 1,565,563,835.15
(3) Bad debt provision of accounts receivable this year
Changes this year
Balance at Balance at year-
Category Withdrawal or Resale or Other
year-begin Accrual end
reversal write-off decreases
Bad debt
258,691,889.30 46,016,573.15 3,588,165.07 - 2,152,899.44 298,967,397.94
provision
Total 258,691,889.30 46,016,573.15 3,588,165.07 - 2,152,899.44 298,967,397.94
(4) Account receivable actually written-off in Current Year: N/A.
(5) Top five receivables collected by arrears party amounting to 1,735,301,853.62 yuan in total, accounted for
59.31% of the receivables of current year-end, the bad debt provision accrual correspondingly amounting to
153,978,176.56 yuan at year-end balance.
(6) Account receivable terminated recognization due to the transfer of financial assets of 1,421,087,329.97
yuan.
(7) No assets and liability transfer Account receivable and continues to involve at year-end.
162
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
5. Receivables financing
Item Ending balance Opening balance
Bank acceptance 1,604,435,165.24 1,446,358,719.88
Total 1,604,435,165.24 1,446,358,719.88
(1)Notes receivable already pledged that presented in receivables financing:
Item Amount pledged at period-end Amount pledged at period-begin
Bank acceptance 444,382,921.22 405,400,483.49
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.64.
Assets with restricted ownership or use rights.
(2)Receivable financing that have been endorsed or discounted at end of the Period and are not yet due at
balance sheet date
Amount derecognition at Amount without
Item
period-end derecognition at period-end
Bank acceptance 796,716,204.94
Total 796,716,204.94
6. Accounts paid in advance
(1) Age of account paid in advance
Ending balance Opening balance
Item Amount Ratio （%） Amount Ratio （%）
Within one year 17,214,800.04 88.25 39,700,777.69 86.57
1-2 years 670,023.28 3.43 5,042,628.29 11.00
2-3 years 958,898.56 4.92 1,116,085.57 2.43
Over 3 years 663,158.49 3.40
Total 19,506,880.37 100.00 45,859,491.55 100.00
(2) Top 5 of account paid in advance in balance at period-end amounting to10,927,827.80yuan, accounted
for56.02% of the account.
7. Other account receivable
Item Ending balance Opening balance
Other account receivable 84,080,620.23 88,354,803.24
Total 84,080,620.23 88,354,803.24
(1) Category of other account receivable
163
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
Nature Book balance at period-end Book balance at period-begin
Export rebate 42,386,850.46 13,304,094.59
Cash deposit 20,679,027.00 53,876,630.71
Loans of employee’s pretty cash 20,993,064.33 19,142,320.86
Related party not in consolidation statement 664,271.43 716,725.90
Advance money temporary 489,599.01 3,122,122.93
Other 503,366.48 1,174,866.78
Total 85,716,178.71 91,336,761.77
(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. 2023 1,690,724.90 1,291,233.63 2,981,958.53
Book balance of other account
receivable in Current Period as
at 1 Jan. 2023
--Transfer to the second stage
-- Transfer to the third stage
-- Reversal to the second stage
-- Reversal to the first stage
Provision in Current Period -1,346,818.25 -1,346,818.25
Reversal in Current Period
Conversion in Current Period
Write off in Current Period
Other change 418.20 418.20
Balance as at 30 Jun. 2023 344,324.85 1,291,233.63 1,635,558.48
(3) By account age
Account age Ending balance Opening balance
Within 3 months (3 months included) 70,162,312.05 32,703,626.46
More than 3 months and less than 6 months (6
2,105,772.11 3,033,052.73
months included)
Over 6 months and within one year (One year
2,121,730.11 9,242,123.46
included)
Over one year - within 2 years (2 years included) 4,722,444.01 16,985,265.38
164
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
Account age Ending balance Opening balance
Over 2 years - within 3 years (3 years included) 1,969,439.00 22,359,916.12
Over 3 years 4,634,481.43 7,012,777.62
Total 85,716,178.71 91,336,761.77
(4) Top 5 other receivables collected by arrears party at balance of period-end:
Proportion in
total other Ending
Name Nature Ending balance Account age receivables balanceofbad
ending balance debtprovision
(%)
Unit I Export rebate 42,265,562.52 Within 3 months 49.31
Unit II Cash deposit 10,000,000.00 Within 3 months 11.67
Within 3 months ,2-3
Unit III Pretty cash 1,433,682.65 1.67
years
Unit IV Pretty cash 1,307,420.29 1-2 years 1.53
Unit V Pretty cash 1,195,854.22 Within 3 months 1.40
Total 56,202,519.68 65.58
(5) No other account receivable involved government subsidies
(6) No other receivables terminated recognition due to the transfer of financial assets
(7) No assets and liability transfer other receivables and continues to involve
8. Inventories
(1) Classification of inventories
Endingbalance
Inventory price decline
Item provision/contract
Book balance Book value
performance cost
impairment provision
Raw materials 233,187,901.46 6,749,428.55 226,438,472.91
Stock commodities 1,150,829,725.91 47,629,987.51 1,103,199,738.40
Low value consumable articles 2,620,734.88 800,989.07 1,819,745.81
Goods in transit 896,671,476.94 6,775,018.04 889,896,458.90
Goods-in-process 8,908,329.87 8,908,329.87
Contract performance cost 29,232,475.47 29,232,475.47
Deferred expense for mould 40,999,693.18 40,999,693.18
Total 2,362,450,337.71 61,955,423.17 2,300,494,914.54
(Continued)
165
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
Opening balance
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
(2) Provision for inventory depreciation and contract performance cost impairment provision
Increase this period Decrease this period
Ending
Item Opening balance Reversal or
Accrual Other Other balance
reselling
Raw materials 6,676,011.97 1,774,507.49 1,701,090.91 6,749,428.55
Stock
48,374,183.50 14,540,441.69 15,211,189.62 73,448.06 47,629,987.51
commodities
Goods in transit 6,074,817.77 1,684,831.46 984,631.19 6,775,018.04
Low value
consumable 871,871.72 70,882.65 800,989.07
articles
Total 61,996,884.96 17,999,780.64 17,967,794.37 73,448.06 61,955,423.17
(3) Accrual for inventory falling price reserves
Reasons for the reversal or
Item Specific basis for determining of net realizable value
reselling in Current Period
Cost is higher than net realizable value (The processed products are
Raw materials For production
decline)
Stock Cost is higher than net realizable value (The market price at period-end
For sale
commodities fell)
Cost is higher than net realizable value (The market price at period-end
Goods in transit For sale
fell)
Low value
consumable Cost is higher than net realizable value Already used
articles
Contract Engineering construction cost is higher than net realizable value (The
Already used
processed products are decline)
performance cost
9. Contract assets
(1) Contract assets
166
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
Ending balance Opening balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Warranty 34,142,084.99 2,185,321.63 31,956,763.36 4,301,610.03 770,687.90 3,530,922.13
Total 34,142,084.99 2,185,321.63 31,956,763.36 4,301,610.03 770,687.90 3,530,922.13
(2) Provision for impairment of contract asset in the Period
Withdrawal or
Item Accrual Resale or write-off Reason
reversal
Bad debt provision 1,414,633.73
Total 1,414,633.73
10. Non-current assets coming due within one year
Balance at year-end Balance at year-begin
Items
Debt investment due within one yea 292,055,597.22 170,167,638.89
Total 292,055,597.22 170,167,638.89
11. Other current assets
Item Balance at year-end Balance at year-begin
Value-added tax to be deducted 71,901,466.09 39,540,856.28
Advance payment of income tax 29,557,102.71 22,673,762.88
Contract acquisition cost 4,528,691.04 5,654,727.03
Local sales tax in Pakistan 741,552.16 1,269,125.78
Fixed deposits and interest 211,840,756.94 50,559,479.17
Other 693,268.51 891,480.71
Total 319,262,837.45 120,589,431.85
12.Creditor's rights investment
Balance at year-end Balance at year-begin
Impai Impai
Items rment rment
Book balance Book value Book balance Book value
provis provis
ion ion
Large certificates
182,033,111.11 182,033,111.11 121,543,750.00 121,543,750.00
of deposit
Total 182,033,111.11 182,033,111.11 121,543,750.00 121,543,750.00
167
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
13. Long-term equity investment
Changes in Current Year
Balanc
Add Other e at
Balance at year- ition Investment compreh Other Provisi Balance at year- year-
Invested enterprise Declaration of
begin al Disinve profit and loss ensive changes on for Oth end end of
cash dividends
inve stment confirmed by income of impair er impair
or profits
stme equity method adjustme equity ment ment
nt nt
Associated companies
1.Hefei Xingmei Assets Management Co.,
19,899,176.44 -13,428.80 5,793,600.00 14,092,147.64
Ltd.
2.Sichuan Zhiyijia Network Technology Co.,
51,850,179.61 11,553,358.32 1,629,022.64 61,774,515.29
Ltd. note1
3.Hong Yuan Ground Energy Heat Tech. Co.,
17,019,041.81 -555,510.55 16,463,531.26
Ltd.note2
4.Sichuan Tianyou Guigu Technology Co.,
3,110,581.87 -165,237.44 2,945,344.43
Ltd.note3
5.Chengdu Guigu Environmental Tech. Co.,
8,505,448.77 -452,192.09 8,053,256.68
Ltd.note4
6.ChanghongRuba
Electric Company(Private)Ltd.
7.Hefei Xinmei Solar Energy Technology
2,177,980.00 2,177,980.00
Co., Ltd.note6
Total 100,384,428.50 12,544,969.44 9,600,602.64 103,328,795.30
168
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
Note 1: on 16 December 2014, the Company executed a joint venture agreement with its controlling
shareholder Sichuan Changhong Electric Co., LTD, targeting to jointly establish Sichuan Zhiyijia
Network Technology Co., Ltd. On 5 January 2015, Sichuan Zhiyijia Network Technology Co., Ltd was
officially incorporated with registered capital of 50 million yuan, among which, the Company made
contribution of 15 million 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
169
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
registered capital. Chengdu Southwest Jiaotong University Industry (Group) Co., Ltd made capital
contribution of 8 million yuan, accounting for 20% of the registered capital. Mianyang Investment
Holding (Group) Co., Ltd made capital contribution of 2 million yuan, accounting for 5% of the
registered capital. Shanghai Zhongcheng Xindaya Financial Information Service Co., Ltd made capital
contribution of 2 million yuan, accounting for 5% of the registered capital. Sichuan Shuye Jiachen
Property Development Company made capital contribution of 4 million yuan, accounting for 10% of
the registered capital. Chengdu Dongyu Shangmao Co., Ltd made capital contribution of 6 million yuan,
accounting for 15% of the registered capital
Note 5: Zhongshan Changhong, a subsidiary of the Company, entered into a supplemental joint venture
agreement with RUBA Comprehensive Trading Company in 2017, pursuant to which, both parties
agreed to increase capital contribution of US$ 1,130,191.00, among which, Zhongshan Changhong
subscribed to contribute US$ 452,076.00 (equivalent to 3,001,649.02 yuan on the actual contribution
date) according to the original shareholding proportion of 40% and RUBA Comprehensive Trading
Company subscribed to contribute US$ 678,115.00 according to the original shareholding 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. 542,489,224.37 542,489,224.37
Sichuan Hongyun New-Generation Information
technology Venture Capital Fund Partnership (limited 41,015,878.36 41,015,878.36
partnership)
Changhong Group Sichuan Shenwan Hongyuan
Strategic New Industrial Parent Fund Partnership 40,044,345.58 40,044,345.58
(limited partnership)
Huishang Bank Co., Ltd. 5,000,000.00 5,000,000.00
Total 628,549,448.31 628,549,448.31
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 62,361,143.47 62,361,143.47
170
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
Item House and buildings Total
2.Increase in this year
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 9,463,082.58 9,463,082.58
2.Increase in this year 988,786.61 988,786.61
(1)Provision or amortization 988,786.61 988,786.61
3.Decrease in this year
4.Balance at year-end 10,451,869.19 10,451,869.19
III.Impairment provision
IV.Book value
1.Ending book value 51,909,274.28 51,909,274.28
2. Opening book value 52,898,060.89 52,898,060.89
(2) No investment real estate measured by fair value at year-end.
(3) Particular about mortgage of investment property at year-end.
Original book Accumulated Impairment
Name Book value
value depreciation provision
House and buildings 5,795,017.72 2,607,186.17 3,187,831.55
(4) Investment real estate without property certification held
Reasons for failing to complete
Item Book value
property rights certificate
J04workshop 27,114,336.31 Related property rights in procedure
J03workshop 18,737,282.11 Related property rights in procedure
J20 air compressor station workshop 1,338,934.08 Related property rights in procedure
J18 opening and closing office 647,949.55 Related property rights in procedure
Total 47,838,502.05
16. Fixed assets
Item Ending book value Opening book value
Fixed assets 2,160,693,196.55 2,197,260,683.20
Disposal of fixed assets 32,293,183.76 32,293,183.76
Total 2,192,986,380.31 2,229,553,866.96
16.1 Fixed assets
(1) Fixed assets
171
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
House and Machinery Transport Other
Item Total
buildings equipment equipment equipment
I.Original book value
1.Balance at year-begin 1,712,329,446.72 1,865,348,912.32 34,208,114.60 243,498,921.36 3,855,385,395.00
2.Increase in this year 25,653,197.71 50,705,887.10 1,103,299.98 14,907,151.94 92,369,536.73
(1)Purchase 490,616.61 2,095,819.53 38,938.05 791,757.34 3,417,131.53
(2)Construction in progress transfer-
25,162,581.10 48,610,067.57 1,064,361.93 14,106,565.47 88,943,576.07
in
(3)Transfer-in of investment real
8,829.13 8,829.13
estate
3.Decrease in this year 46,817.00 64,221,505.55 476,682.08 5,443,479.62 70,188,484.25
(1)Dispose or retirement 46,817.00 42,519,363.60 361,051.43 5,281,934.93 48,209,166.96
(2)Construction in progress transfer-
17,772,238.70 17,772,238.70
in
(3)Decreased for change of foreign
115,630.65 161,544.69 277,175.34
rate
(4)Temporary estimated decrease 3,929,903.25 3,929,903.25
4.Balance at year-end 1,737,935,827.43 1,851,833,293.87 34,834,732.50 252,962,593.68 3,877,566,447.48
II.Accumulated depreciation
1.Balance at year-begin 455,256,950.47 1,064,311,933.48 22,446,081.44 114,040,153.79 1,656,055,119.18
2.Increase in this year 27,438,255.60 71,816,205.51 1,657,445.72 10,174,918.40 111,086,825.23
(1)Accrual 27,438,255.60 71,816,205.51 1,657,445.72 10,174,918.40 111,086,825.23
3.Decrease in this year 22,180.29 45,982,327.20 373,083.54 5,023,272.90 51,400,863.93
(1)Dispose or retirement 22,180.29 38,410,281.87 340,863.37 4,951,895.89 43,725,221.42
(2)Construction in progress transfer-
7,572,045.33 7,572,045.33
in
(3)Decreased for change of foreign
32,220.17 71,377.01 103,597.18
rate
4.Balance at year-end 482,673,025.78 1,090,145,811.79 23,730,443.62 119,191,799.29 1,715,741,080.48
III.Impairment provision
1.Balance at year-begin 1,060,299.52 1,009,293.10 2,069,592.62
2.Increase in this year
3.Decrease in this year 924,106.56 13,315.61 937,422.17
(1)Dispose or retirement 924,106.56 13,315.61 937,422.17
4.Balance at year-end 136,192.96 995,977.49 1,132,170.45
IV.Book value
1.Ending book value 1,255,262,801.65 761,551,289.12 11,104,288.88 132,774,816.90 2,160,693,196.55
2. Opening book value 1,257,072,496.25 799,976,679.32 11,762,033.16 128,449,474.47 2,197,260,683.20
The new fixed assets in this year mainly due to the 88,943,576.07 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.
172
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
Original book Accumulated Impairment
Name Book value
value depreciation provision
House and buildings 477,550,851.88 149,722,150.78 327,828,701.10
(3) Fixed assets leased through operating lease at year-end
Original book Accumulated Impairment
Item Book value
value depreciation provision
House and buildings 68,259,223.94 24,519,269.12 43,739,954.82
Machinery
25,239,848.68 14,358,682.67 10,881,166.01
equipment
Other equipment 10,720.00 10,184.00 536.00
Total 93,509,792.62 38,888,135.79 54,621,656.83
(4) Fixed assets without property certificate
Reason of not complete the
Item Book value
property certificate
Related property rights in
J07 electrical workshop 44,560,929.51
procedure
Related property rights in
Testing and experiment Centre building 36,562,708.23
procedure
Related property rights in
J02workshop 28,665,997.64
procedure
Related property rights in
J05 evaporator and condenser workshop 27,606,764.56
procedure
Related property rights in
J01workshop 26,569,665.08
procedure
Related property rights in
J06 central air-conditioner workshop 18,746,521.73
procedure
Related property rights in
J50finished product warehouse 16,517,248.77
procedure
Related property rights in
J51finished product warehouse 16,026,355.05
procedure
Related property rights in
J53finished product warehouse 12,160,761.67
procedure
Related property rights in
J52finished product warehouse 11,620,348.71
procedure
Related property rights in
J54finished product warehouse 11,365,905.87
procedure
Related property rights in
J55finished product warehouse 10,478,943.02
procedure
Related property rights in
J56 finished product warehouse 10,478,943.02
procedure
Related property rights in
J09raw material warehouse 6,354,485.42
procedure
Related property rights in
J10raw material warehouse 4,910,894.55
procedure
Related property rights in
J11raw material warehouse 4,837,841.15
procedure
Related property rights in
J08 packing materials warehouse 4,407,803.29
procedure
Related property rights in
J17 chemical storage 1,509,106.19
procedure
Related property rights in
J15 house of refrigerant forklift 1,478,859.01
procedure
Related property rights in
J16 chemical storage 1,217,926.31
procedure
173
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
Reason of not complete the
Item Book value
property certificate
Related property rights in
J19 main guard room 361,280.93
procedure
Related property rights in
J19A guard room 191,669.11
procedure
Related property rights in
J19D guard room 140,873.20
procedure
Related property rights in
J19E guard room 140,873.20
procedure
Total 296,912,705.22
(5) No fixed assets held for sale at year-end
16.2 Disposal of fixed assets
Amount at year- Amount at year- Reasons for disposal
Item
end begin transferred
Relocation for land
Relevant assets disposal for reserved lands 32,293,183.76 32,293,183.76
reserve
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.
17. Construction in progress
Item Balance at year-end Balance at year-begin
Construction in progress 62,914,871.29 66,522,492.77
Total 62,914,871.29 66,522,492.77
(1) Details of construction in progress
174
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
Amount at year-end Amount at year-begin
Items Book Impairment Book Book Impairment Book
balance provision value balance provision value
Meiling extrusion line
relocation and capacity 11,567,669.03 11,567,669.03 6,938,682.02 6,938,682.02
expansion project
Industrial Internet Changhong
7,137,735.85 7,137,735.85 13,041,733.93 13,041,733.93
Meiling Promotion Project
Multi-door shell molding line 5,166,461.81 5,166,461.81 5,053,126.87 5,053,126.87
Laboratory investment
3,842,360.05 3,842,360.05 2,384,325.39 2,384,325.39
projects
Front-end expansion project
of Hefei base with an annual
3,361,716.27 3,361,716.27 3,242,813.99 3,242,813.99
output of 10 million
refrigerator cabinets
Commercial kitchen 3,100,427.30 3,100,427.30 2,627,743.25 2,627,743.25
Large refrigerator jl line
production capacity upgrading 2,434,540.15 2,434,540.15
project
Door lining to homemade
2,321,860.50 2,321,860.50 2,328,292.80 2,328,292.80
phase I project
Large refrigerator door hair
line efficiency improvement 2,235,416.56 2,235,416.56
and transformation project
Full value data operation and
2,046,226.41 2,046,226.41
Ling Cloud platform
Accident response pool
1,966,932.76 1,966,932.76 1,539,361.49 1,539,361.49
construction
Supporting production
equipment of washing 1,919,823.02 1,919,823.02 1,919,823.02 1,919,823.02
machine
Large refrigerator low boiling
point foaming equipment 1,325,333.39 1,325,333.39 1,652,011.04 1,652,011.04
renovation project
Enthalpy difference laboratory
1,266,165.00 1,266,165.00
project
Freeze lining structure
changed to bottom package 1,039,571.51 1,039,571.51 2,886,521.55 2,886,521.55
side
Liquid nitrogen tank
560,521.11 560,521.11 560,521.11 560,521.11
production line construction
Efficiency improvement of
107,974.38 107,974.38 182,748.20 182,748.20
refrigerator cabinet
Technical transformation
project of Zhongshan 7,547.17 7,547.17 615,619.91 615,619.91
Changhong
Comprehensive renovation
project of mixed flow of
6,995,545.89 6,995,545.89
rainwater and sewage in
freezer park and living area
Refrigerator park rainwater
2,597,950.95
system rectification project 2,597,950.95
Refrigerator park 35 kV
1,273,661.54
substation construction project 1,273,661.54
21 years of Manufacturing
System Automation Project 186,700.00
(Phase I) 186,700.00
Meiling PLM project 237,168.14 237,168.14
Other petty projects 11,506,589.02 11,506,589.02 10,258,141.68 10,258,141.68
175
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
Amount at year-end Amount at year-begin
Items Book Impairment Book Book Impairment Book
balance provision value balance provision value
Total 62,914,871.29 62,914,871.29 66,522,492.77 66,522,492.77
(2) Changes in significant construction in progress
Transfer
Book to fixed
Increase in Other Book
balance at assets in Sourceof
Projects Current balance at
period- decrease funds
Period Current period-end
begin
Period
Front-end expansion project of
Hefei base with an annual output Self-
3,242,813.99 118,902.28 3,361,716.27
of 10 million refrigerator raised
cabinets
(Continued)
including: Interest
Proportion of Accumulated interest capitaliza
Budget (in 10
project Progres amount of capitalized tion rate
Projects thousand
investment in s interest amount of of
Yuan)
budget capitalization Current Current
Period Period
Front-end expansion project
of Hefei base with an annual
4,121.24 77% 85%
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 58,322,978.95 58,322,978.95
2.Increase in this year 1,534,315.05 1,534,315.05
(1) Rent in 1,534,315.05 1,534,315.05
3. Decrease in this year 11,230,936.28 11,230,936.28
（1）The lease expires 11,230,936.28 11,230,936.28
4.Balance at year-end 48,626,357.72 48,626,357.72
II.Accumulated depreciation
1.Balance at year-begin 21,676,843.85 21,676,843.85
2. Increase in this year 4,155,504.30 4,155,504.30
(1)Accrual 4,155,504.30 4,155,504.30
3. Decrease in this year 10,142,864.39 10,142,864.39
（1）The lease expires 10,142,864.39 10,142,864.39
176
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
Item House and buildings Total
4.Balance at year-end 15,689,483.76 15,689,483.76
III.Impairment provision
IV.Book value
1.Ending book value 32,936,873.96 32,936,873.96
2. Opening book value 36,646,135.10 36,646,135.10
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-
864,798,616.68 283,292,439.34 637,791,820.51 159,787,652.35 1,945,670,528.88
begin
2.Increase in this
54,097,658.16 28,102,115.84 82,199,774.00
year
(1) Internal research 54,097,658.16 28,023,329.87 82,120,988.03
（2）Other 78,785.97 78,785.97
3.Decrease in this
138,785.97 400,000.00 538,785.97
year
(1)Other decreases 138,785.97 400,000.00 538,785.97
4.Balance at year-
864,798,616.68 283,292,439.34 691,750,692.70 187,489,768.19 2,027,331,516.91
end
II.Accumulated
amortization
1.Balance at year-
214,959,291.84 283,292,439.34 449,672,240.15 51,575,018.09 999,498,989.42
begin
2.Increase in this
9,200,721.89 51,637,960.42 13,991,650.31 74,830,332.62
year
(1)Accrual 9,200,721.89 51,637,960.42 13,991,650.31 74,830,332.62
3.Decrease in this
718,583.61 718,583.61
year
(1)Other decreases 718,583.61 718,583.61
4.Balance at year-
224,160,013.73 283,292,439.34 501,310,200.57 64,848,084.79 1,073,610,738.43
end
III.Impairment
provision
1.Balance at year-
33,820,367.20 11,783,164.05 45,603,531.25
begin
2.Balance at year-
33,820,367.20 11,783,164.05 45,603,531.25
end
IV.Book value
1.Ending book value 640,638,602.95 156,620,124.93 110,858,519.35 908,117,247.23
2. Opening book
649,839,324.84 154,299,213.16 96,429,470.21 900,568,008.21
value
177
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
The intangible assets resulted from internal research takes 4.05% 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 June 2023, mortgage of intangible assets is as follows:
Net book Not
Name Property certificate serials Area(M2)
value e
Land use right HGYJCZi No.: 0121 27,120.22 16,152,510.89
Wan (2019) Property right of Hefei No.:
1148244/1148249/1148243/1148240/1148248/1148246/1148241/
Land use right 477,550.03 222,085,682.43
1148238/1149101/1148242/1148245/1148239/1148237/1148250/
1148247/1149102
Land use right Wan (2019) Property right of Feixi County No.: 0061435/0061445 33,383.10 12,709,009.31
Wan (2019) Property right of Feixi County No.:
Land use right 0061456/0061447/0061438/0061440/0061452/0061450/0061430/ 82,850.51 17,524,515.89
0061657
Total 620,903.86 268,471,718.52
20. Development expense
Increase this period Decrease this period
Included in
Opening Internal Confirmed as Ending
Item current
balance development Other intangible Other balance
profits and
expenditure assets
losses
Technology
development 41,761,484.12 35,426,036.60 86,880.59 47,295,715.44 29,804,924.69
for Air-conditioner
Technology
development 60,386,906.45 42,578,157.76 34,825,272.59 68,139,791.62
for refrigerator
Total 102,148,390.57 78,004,194.36 86,880.59 82,120,988.03 97,944,716.31
21. Goodwill
(1) Original value of goodwill
Increase this period Decrease this period
Formation Formation
Invested enterprise from from Ending
Opening balance
Other Other balance
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
178
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
(2) Impairment loss of goodwill
Decrease this
Increase this period
Invested enterprise Opening period Ending
balance Accrua balance
Accrual Other Other
l
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 period-end.
22. Long-term prepaid expenses
Opening Increase this Amortization
Item Other decreases Ending balance
balance period for the period
Long-term prepaid 14,900,600.59 2,747,813.14 1,511,928.68 16,136,485.05
expenses
Total 14,900,600.59 2,747,813.14 1,511,928.68 16,136,485.05
23. Deferred tax assets and deferred tax liabilities
(1) Deferred income tax assets without the offset
Ending balance Opening balance
Item Deductible Deferred Deductible Deferred
temporary income tax temporary income tax
difference assets difference assets
Deferred income tax assets recognized
255,060,365.11 38,259,054.75 220,654,506.50 33,098,175.98
from assets impairment
Deferred income tax assets recognized
32,038,544.31 4,805,781.65 12,624,332.22 1,893,649.84
from accrual liability
Deferred income tax assets recognized
14,759,193.93 2,213,879.09 9,072,708.08 1,360,906.21
from Dismission welfare
Deferred income tax assets recognized
88,454,568.72 13,268,185.30 100,794,535.00 15,119,180.24
from deferred income
Deferred income tax assets recognized from ir-
677,537,739.37 101,630,660.91 684,314,381.95 102,647,157.29
reparable losses
Accrued income tax assets 8,981,546.38 1,736,596.69 8,718,636.16 1,666,526.91
Deferred income tax assets recognized for development
5,632,939.75 844,940.96
expenditure
Deferred income tax assets recognized by lease liabilitie 35,872,336.06 4,587,035.47 38,239,898.15 4,935,157.87
Total 1,112,704,293.88 166,501,193.86 1,080,051,937.81 161,565,695.30
(2) Deferred income tax liabilities without the offset
179
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
Ending balance Opening balance
Item Taxable Deferred Taxable Deferred
temporary income tax temporary income tax
differences liability differences liability
Recognized by fixed assets depreciation 34,009,463.42 5,101,419.52 27,362,815.80 4,104,422.37
Recognized by changes in fair value 37,277,115.41 5,591,567.31 57,642,166.20 8,646,324.93
Deferred income tax liabilities recognized by
32,936,873.96 4,297,526.13 36,646,135.08 4,758,755.78
use asset
Total 104,223,452.79 14,990,512.96 121,651,117.08 17,509,503.08
(3) Details of unrecognized deferred income tax assets
Item Ending balance Opening balance
Deductible temporary difference 185,418,241.82 168,621,827.52
Deductible loss 541,747,042.63 1,068,180,146.62
Total 727,165,284.45 1,236,801,974.14
24. Other non-current assets
Item Ending balance Opening balance
Prepaid equipment, engineering, etc. 1,689,040.18 893,238.57
Total 1,689,040.18 893,238.57
25. Short-term loans
(1)Classification of short-term loan
Category Ending balance Opening balance
Guaranteed loan 30,000,000.00 55,000,000.00
Loan in credit 851,064,263.12 619,000,000.00
Interest payable 142,863.89 143,916.67
Total 881,207,127.01 674,143,916.67
（2）Short-term loans overdue：N/A.
26. Trading financial liability
Item Balance at year-end Balance at year-begin
Trading financial liability 113,610,931.43 41,961,524.78
Including: Derivative financial liability 113,610,931.43 41,961,524.78
27. Note payable
Type Balance at year-end Balance at year-begin
Bank acceptance 5,492,928,745.28 4,814,889,712.60
180
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
Type Balance at year-end Balance at year-begin
Trade acceptance 274,990,797.29 149,484,800.00
Total 5,767,919,542.57 4,964,374,512.60
28. Account payable
(1) Account payable
Item Amount at year-end Amount at year-begin
Total 4,898,495,830.71 2,917,997,138.00
Including: Amount aged over 1 year 67,269,129.24 60,523,652.84
(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 355,486,232.62 358,755,397.77
Including: Amount aged over 1 year 52,336,364.63 29,823,819.05
30. Wages payable
(1) Category
Balance at year- Balance at year-
Item Increase this year Decrease this year
begin end
Short-term compensation 323,031,068.96 927,323,947.64 888,046,345.49 362,308,671.11
After-service welfare-
20,496,424.32 62,544,169.59 81,261,440.91 1,779,153.00
defined contribution plans
Dismiss welfare 4,627,421.85 2,707,330.28 3,648,008.66 3,686,743.47
Total 348,154,915.13 992,575,447.51 972,955,795.06 367,774,567.58
(2) Short-term compensation
Balance at year- Balance at year-
Item Increase this year Decrease this year
begin end
Wages,bonuses, allowances and
311,848,079.07 845,449,873.90 805,163,354.58 352,134,598.39
subsidies
Welfare for workers and
402,556.82 22,718,448.56 22,912,965.59 208,039.79
staff
Social insurance 5,220,685.85 26,491,775.53 27,834,413.86 3,878,047.52
Including: Medical
4,811,752.39 24,351,636.14 25,395,168.34 3,768,220.19
insurance
Work injury insurance 325,176.62 1,833,894.29 2,133,000.42 26,070.49
Maternity insurance 83,756.84 306,245.10 306,245.10 83,756.84
181
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
Balance at year- Balance at year-
Item Increase this year Decrease this year
begin end
Housing accumulation
5,115,350.86 30,892,298.64 30,627,966.16 5,379,683.34
fund
Labor union
expenditure and
444,396.36 1,771,551.01 1,507,645.30 708,302.07
personnel education
expense
Total 323,031,068.96 927,323,947.64 888,046,345.49 362,308,671.11
(3) Defined contribution plans
Item Balance at year- Increase this year Decrease this year Balance at year-
begin end
Basic endowment
18,215,805.28 60,472,648.91 78,129,106.10 559,348.09
insurance
Unemployment
2,280,619.04 2,071,520.68 3,132,334.81 1,219,804.91
insurance
Total 20,496,424.32 62,544,169.59 81,261,440.91 1,779,153.00
31. Tax payable
Item Balance at year-end Balance at year-begin
Value-added tax
72,798,122.88 30,277,729.74
Enterprise income tax
3,726,139.68 1,822,555.65
Individual income tax
2,130,253.92 4,799,031.61
Urban maintenance and construction
tax 12,821,215.91 9,544,272.36
Real estate tax
3,875,148.80 3,658,985.41
Land use tax
1,430,562.33 1,431,191.08
Educational surtax
9,259,480.50 6,850,511.36
Stamp tax
5,228,108.39 3,654,400.08
Construction fund of Water
Conservancy Projects 645,330.26 668,948.01
Treatment fund for abandon
electrics & electronics 26,819,774.00 17,508,786.00
Other 194,116.83 71,467.32
Total 138,928,253.50 80,287,878.62
32. Other account payable
182
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
Item Balance at year-end Balance at year-begin
Dividend payable 32,049,708.69 4,978,994.16
Other account payable 1,009,254,426.87 823,228,574.05
Total 1,041,304,135.56 828,207,568.21
32.1 Dividend payable
Item Balance at year-end Balance at year-begin
Sichuan Changhong Electric Co., Ltd. 22,361,195.16
Hefei Industry Investment Holding (Group) Co.,
4,304,106.09
Ltd.
China Life Insurance (Group) Company 288,404.82 288,404.82
The People’s Insurance Company (Group) of China
432,607.23 432,607.23
Limited
BOC- Fullgoal Tianyi Securities Investment Fund 153,697.50 153,697.50
Hefei Branch of Bank of China 446,576.60 391,245.50
Hefei collective industry association 446,575.90 391,244.89
Entrust Investment Wuhu of Provincial ABC 357,261.30 312,996.42
Other units 3,259,284.09 3,008,797.80
Total 32,049,708.69 4,978,994.16
31.2 Other account payable
(1) Other account payable by nature
Nature Ending balance Opening balance
1.Accrued expenses (expenses occurred without reimbursed) 478,420,630.84 344,028,624.89
2. Receivables received temporary and deducted temporary 12,146,256.54 13,166,091.61
3.Deposit, margin 169,269,731.58 174,331,550.53
4.Not the come-and-go with related parties in statement
335,210,024.79 278,716,366.01
scope
5. Other 14,207,783.12 12,985,941.01
Total 1,009,254,426.87 823,228,574.05
(2) At end of Current Period, the major other account payable with account age over one year mainly
refers to deposit and margin.
33. Non-current liability due within one year
Item Ending balance Opening balance
Long-term loan principal and interest due within one year 30,166,708.61 20,211,488.89
Lease liabilities due within one year 10,532,449.51 10,075,610.19
183
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
Item Ending balance Opening balance
Total 40,699,158.12 30,287,099.08
34. Other current liabilities
Item Ending balance Opening balance
Pending sales tax 25,480,359.50 21,970,126.59
Factoring fees payable 358,105.78 635,142.92
Total 25,838,465.28 22,605,269.51
35. Long term borrowings
(1) Category of long term borrowings
Category Ending balance Amount at year-begin
Loan in mortgage 128,000,000.00 148,000,000.00
Total 128,000,000.00 148,000,000.00
(2) Long-term borrowings at period-end
Foreig
Borrowing Returning n Intere Ending balance Opening
Loan from
day day curren st rate (RMB) balance (RMB)
cy
EIBC (Export-Import
Bank) Anhui Province 2020/3/26 2026/11/25 RMB 4.105% 98,000,000.00 98,000,000.00
Branch Note 1
EIBC (Export-Import
Bank) Anhui Province 2019/12/23 2026/11/25 RMB 4.105% 30,000,000.00 50,000,000.00
Branch Note 2
Total 128,000,000.00 148,000,000.00
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. 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
184
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
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 40,000,000.00 yuan. It plans to repay 10,000,000.00 yuan on
December 25, 2023 and repay 20,000,000.00 yuan on June 25, 2024, a total of 30,000,000.00 yuan has
been reclassified to non-current liabilities due within one year. The balance at the end of the year is
RMB 30,000,000.00.
36. Lease liability
Item Balance at year-end Balance at year-begin
Lease liability 25,339,886.55 28,164,287.97
Total 25,339,886.55 28,164,287.97
37. Long-term payable
Item Balance at year-end Balance at year-begin
Special payable 1,049,108.10 1,145,286.48
Total 1,049,108.10 1,145,286.48
37.1 Special payable
Balance at Increase Decrease Balance at
Item Reason
year-begin this year this year year-end
Special funds for
Technology plan
technological
1,145,286.48 96,178.38 1,049,108.10 project in
transformation from
Zhongshan City
Zhongshan Changhong
38. Long-term wage payable
Item Balance at year-end Balance at year-begin
Dismissal welfare 12,164,985.18 10,790,859.64
Total 12,164,985.18 10,790,859.64
According to the internal early retirement policy, the long-term payable dismissal welfare bears by the
Company up to year-end amounting to 12,164,985.18yuan
39. Accrual liability
Balance at year-
Item Balance at year-end Reason
begin
Guarantee of
Product quality guarantee note1 30,318,009.89 30,965,097.36
product
Litigation matters note2 1,720,534.42 1,720,534.42
Total 32,038,544.31 32,685,631.78
Note 1: Product quality deposit is the maintenance expense provided by the Company under the national
policy.
185
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
Note2: In November 2021, Zhejiang Teruisi Pharmaceutical Inc. filed a lawsuit against Zhongke
Meiling for the "Cold Storage Design, Equipment Purchase and Installation Construction Contract".
Currently, quality of the subject under the contract is being authenticated by a third party engineering
quality appraisal agency, the initial start-up operation test is now completed. Zhongke Meiling intends
to maintain the cold storage project, and the estimated maintenance cost is 1,720,534.42 yuan.
40. Deferred income
(1) Classification of deferred income
Opening Increase Decrease this
Item Ending balance Reason
balance this period period
Government subsidies---
subsidies of development 127,493,219.76 1,117,000.00 14,405,014.01 114,205,205.75
project
Government subsidies---
33,520,692.15 - 1,291,710.66 32,228,981.49
subsidies of Relocation
Total 161,013,911.91 1,117,000.00 15,696,724.67 146,434,187.24
186
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
(2) Government subsidy
Amount reckoned
New subsidy in Other Assetsrelated/Income
Item Opening balance into other income in Ending balance
Current Period changes related
Current Period
Demolition compensation of Changhong Meiling 33,520,692.15 1,291,710.66 32,228,981.49 Assets related
Demonstration factory construction for the intelligent
35,088,607.61 3,759,493.68 31,329,113.93 Assets related
manufacturing of intelligent air-conditioner
District-level subsidy funds for advanced manufacturing policies
10,339,500.00 689,300.00 9,650,200.00 Assets related
in the first half of 2022
Key chip and module for transducer used and detection capacity
6,966,666.65 760,000.02 6,206,666.63 Assets related
building
Centre for external cooperation of the environmental protection 6,655,859.14 515,754.53 6,140,104.61 Assets related
Changhong Air Conditioner- relocation of production base and
5,351,111.04 573,333.36 4,777,777.68 Assets related
upgrading & expansion
District-level subsidy funds for advanced manufacturing policies
5,116,200.00 393,553.84 4,722,646.16 Assets related
in the first half of 2021
Subsidy for industrial development policy from Hefei for first half
5,294,000.00 625,000.00 4,669,000.00 Assets related
of 2018
Municipal award and subsidy for the advanced manufacturing
5,056,094.11 421,341.18 4,634,752.93 Assets related
policy in first half of 2020
Special fund, government subsidy CZ059001 4,200,000.00 4,200,000.00 Assets related
Adaptability improvement on new coolants production 4,729,963.29 1,182,490.86 3,547,472.43 Assets related
20-year subsidy for advancing technological transformation
3,572,833.34 267,962.50 3,304,870.84 Assets related
projects
Subsidy for industrial development policy from Hefei for second
3,577,100.00 447,137.50 3,129,962.50 Assets related
half of 2019
2021 manufacturing strong provincial policy subsidy funds 2,794,285.71 214,945.06 2,579,340.65 Assets related
Subsidy for industrial development policy from Hefei for first half
2,571,383.33 217,300.00 2,354,083.33 Assets related
of 2020
Policy funds for manufacturing a strong province, subsidy for
equipment for the technological transformation of industrial 2,500,000.00 312,500.00 2,187,500.00 Assets related
strong base
187
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
Amount reckoned
New subsidy in Other Assetsrelated/Income
Item Opening balance into other income in Ending balance
Current Period changes related
Current Period
20 supporting funds to support the innovation and development of
2,228,571.42 171,428.58 2,057,142.84 Assets related
artificial intelligence industry
Government subsidy for new plant construction - industrialization
2,291,666.67 250,000.00 2,041,666.67 Assets related
of cryogenic refrigeration equipment
2020 fund allocation for Anhui Province's triple innovation
2,044,791.67 162,500.00 1,882,291.67 Assets related
project
Subsidies for intelligent transformation & upgrading of enterprises
from the new industrialization policy in economic development 2,069,389.58 302,837.50 1,766,552.08 Assets related
zone
21 District-level high-quality development policy (the second
1,791,700.00 130,644.80 1,661,055.20 Assets related
batch) award and subsidy funds
Special funds for strategic emerging industry and high-end growth
1,482,758.72 206,896.50 1,275,862.22 Assets related
industry
Research and application of the MCU chip for inverter control 1,150,000.00 143,750.00 1,006,250.00 Assets related
Upgrading technology transformation of AC production line 1,135,088.84 172,750.29 962,338.55 Assets related
Equipment subsidy for the industrial base technical renovation
1,077,083.33 117,500.00 959,583.33 Assets related
from Economic and Information Commission
FREQUENCY VOLUME INTEGRATED INTELLIGENT AIR-
1,644,186.08 704,651.16 939,534.92 Assets related
CONDITIONER)
Upgrade project for the production line of Mianyang Meiling
921,666.80 98,749.98 822,916.82 Assets related
Intelligent Refrigerator
Subsidy for equipment purchasing for Hefei Tech. Improvement
821,150.00 89,580.00 731,570.00 Assets related
project in 2017
Subsidy from Zhongshan Finance Bureau (CZ028001 provincial
786,413.72 150,951.43 635,462.29 Assets related
special project 2019)
22 years of digital network intelligent upgrading project 517,000.00 517,000.00 Assets related
Emerging Industry Base Fund Support Item 536,907.21 38,350.52 498,556.69 Assets related
Industrialization of intelligent white household appliances
software platform and typical application research and 848,484.88 363,636.36 484,848.52 Assets related
development
Special fund for technical improvement 536,326.62 99,810.02 436,516.60 Assets related
188
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
Amount reckoned
New subsidy in Other Assetsrelated/Income
Item Opening balance into other income in Ending balance
Current Period changes related
Current Period
Subsidy for purchase of R & D instruments and equipment 517,880.16 91,056.26 426,823.90 Assets related
Robot policy-rewards for purchasing robots 414,906.26 35,062.50 379,843.76 Assets related
Promotion of the energy-saving room air conditioner 438,144.45 105,154.62 332,989.83 Assets related
Technical transformation of refrigerator evaporator workshop 372,008.71 44,829.02 327,179.69 Assets related
Manufacturing industry digital network project subsidies 600,000.00 327,285.42 272,714.58 Assets related
2018 Zhongshan Special fund for industrial development 214,658.38 38,996.16 175,662.22 Assets related
Technical transformation subsidy 145,658.37 15,890.00 129,768.37 Assets related
Subsidy of advanced manufacturing policy for second half of
51,152.07 3,568.76 47,583.31 Assets related
2021
Promoting the new industry (annual output of 0.6 million
medium& large volume environmental protection and energy 152,206.17 152,206.17 Assets related
saving freezer)
Subsidy for the development on production line technical reform
6,815.43 6,815.43 Assets related
for green-friendly high-quality metal pipe
Total 161,013,911.91 1,117,000.00 15,696,724.67 146,434,187.24
189
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
41. Share capital
Change during the period (+、-)
Item Opening balance New Sharestransferred Ending balance
Bonus
shares from capital Other Subtotal
share
issued reserve
Total
1,029,923,715.00 1,029,923,715.00
shares
42. Capital reserve
Increase this Decrease this
Item Opening balance Ending balance
period period
Share premium 2,758,450,812.90 2,758,450,812.90
Other capital
48,043,091.40 48,043,091.40
reserve
Total 2,806,493,904.30 2,806,493,904.30
43. Other comprehensive income
Current Period
Less: written in
other Less
comprehensive ：
Belong to Belong to Ending
Item Opening balance Account before income in Inco parent minority
income tax in previous period me balance
company after shareholders
Current Period and carried tax
tax after tax
forward to gains expe
and losses in nses
current period
Other comprehensive income re-divided into gains/losses
Conversion
difference
arising from
foreign -20,881,462.63 2,267,837.82 2,021,916.55 245,921.27 -18,859,546.08
currency
financial
statement
Total -20,881,462.63 2,267,837.82 2,021,916.55 245,921.27 -18,859,546.08
44. Capital reserve
Increase this Decrease this
Item Opening balance Ending balance
period period
Statutory surplus reserve 2,467,205.78 15,558,156.14 5,909,555.31 12,115,806.61
Total 2,467,205.78 15,558,156.14 5,909,555.31 12,115,806.61
45. Surplus reserves
Amount at year- Decrease this Amount at year-
Item Increase this year
begin year end
Statutory surplus reserve 325,610,989.32 325,610,989.32
Discretionary surplus
115,607,702.16 115,607,702.16
reserve
190
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
Amount at year- Decrease this Amount at year-
Item Increase this year
begin year end
Total 441,218,691.48 441,218,691.48
46. Retained profit
Item Current Year Last Year
Prior year-end balance 909,082,037.66 734,129,724.00
Adjustment from undistributed profit at year-begin 167,328.13
Balance at year-begin 909,249,365.79 734,129,724.00
Add: net profit attributable to shareholders of parent
358,054,844.74 244,538,734.49
company for this year
Less: withdraw of statutory surplus reserve 18,090,235.08
withdraw of discretionary surplus reserve
Withdraw of general risk provision
Dividend payable for ordinary shares 92,693,134.35 51,496,185.75
Dividend of ordinary shares transferred to share
capital
Balance at year-end 1,174,611,076.18 909,082,037.66
47. Operation income and operation cost
(1) Operation income and operation cost
Current Year Last Year
Item
Income Cost Income Cost
Main
business
12,734,698,313.84 11,126,041,806.09 10,138,489,064.28 9,027,583,283.96
Other
business
93,996,009.73 52,872,269.74 86,014,486.91 33,497,247.10
Total 12,828,694,323.57 11,178,914,075.83 10,224,503,551.19 9,061,080,531.06
(2) Main business classified according to product
Current Year Last Year
Product
Operation income Operation cost Operation income Operation cost
Refrigerator,
freezer
4,224,670,444.64 3,452,620,652.77 3,557,279,193.80 3,052,742,990.21
Air-conditioner 6,997,497,159.24 6,383,899,125.62 5,350,650,174.76 4,907,155,572.46
Washing
machine
557,352,305.32 458,999,445.42 393,315,713.02 330,678,793.62
Small
household
appliances and 852,703,435.92 746,076,815.25 727,498,495.75 642,738,038.67
kitchen and
bathroom
Other 102,474,968.72 84,445,767.03 109,745,486.95 94,267,889.00
Total 12,734,698,313.84 11,126,041,806.09 10,138,489,064.28 9,027,583,283.96
191
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
(3) Main business classified according to sales region
Current Year Last Year
Region
Operation income Operation cost Operation income Operation cost
Domestic 8,842,681,381.11 7,682,608,633.44 7,475,522,523.09 6,574,576,772.52
Overseas 3,892,016,932.73 3,443,433,172.65 2,662,966,541.19 2,453,006,511.44
Total 12,734,698,313.84 11,126,041,806.09 10,138,489,064.28 9,027,583,283.96
(4) At end of the Period, the amount of revenue corresponding to performance obligations that have
been contracted for but not yet fulfill or not yet fulfilled was 197,126,467.81 yuan, of which,
106,519,063.69 yuan is expected to recognized as revenue in 2023, 79,438,448.37 yuan is expected to
recognized as revenue in 2024 and 11,168,955.75 yuan is expected to recognized as revenue in 2025.
(5) Top five clients have income in sales of7,606,038,977.43yuan in total, a 59.29% in total operation
income.
48. Business tax and extra charges
Item Current Period Last Period
Treatment fund for abandon electrics & electronics 45,585,295.00 34,053,294.00
City construction tax 13,473,561.59 11,595,547.22
Extra charge for education and local education
10,374,633.25 8,453,214.37
surcharge
Real estate tax 10,697,322.79 10,082,904.39
Stamp duty 10,239,001.40 7,967,068.56
Land use tax 3,870,702.26 3,745,329.40
Water fund 3,778,106.41 3,799,503.15
Other 7,143.92 4,583.20
Total 98,025,766.62 79,701,444.29
49. Sales expense
Item Current Period Last Period
Salary, extra charges and labor service expenses 327,557,081.46 276,149,382.91
Market support expenses 140,461,155.25 141,739,223.51
Shipping and Installation expense 86,493,787.07 60,200,021.37
National three guarantees expense 81,830,891.01 87,232,488.89
Storage lease expenses 45,248,950.36 41,176,101.46
Travelling expenses 27,620,363.01 7,399,226.17
Insurance 11,544,975.60 2,678,788.57
Business activity expenses 8,433,498.60 7,058,303.94
Vehicle expenses 6,329,264.05 6,683,479.81
192
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
Item Current Period Last Period
Depreciation expenses 4,023,917.38 3,923,388.83
House-lease expenses 1,711,742.10 1,546,666.83
Advertising expenses 601,625.16 1,933,500.47
Other expenses 44,636,008.27 28,345,737.22
Total 786,493,259.32 666,066,309.98
50. Administration expense
Item Current Year Last Year
Salary and social insurance etc. 119,736,522.57 103,835,407.55
Depreciation 11,309,060.92 11,251,858.42
Amortized intangible assets 9,135,614.87 9,079,708.19
Business activities fee 3,157,527.78 2,119,039.65
Water and electricity fee 2,425,289.58 2,245,082.21
Property insurance 1,875,442.73 1,759,716.41
Domestic travelling fee 1,841,650.97 1,270,723.15
Office fee 627,214.85 709,951.38
Other expenses 32,854,541.33 31,860,655.01
Total 182,962,865.60 164,132,141.97
51. R&D expenses
Item Current Year Last Year
Salary and social insurance etc. 116,235,127.25 106,201,825.59
Amortized intangible assets 63,618,830.74 63,948,921.59
Trial fee of R&D 36,151,513.46 29,904,070.97
Cost of mould 13,061,216.32 15,297,848.50
Depreciation 10,012,109.72 8,315,504.26
Inspection and authentication fee 8,613,510.99 8,120,934.36
Water and electricity fee 5,616,418.28 5,776,873.50
Software royalty 1,212,469.15 1,166,276.97
Other expenses 10,655,002.02 9,380,518.80
Total 265,176,197.93 248,112,774.54
52. Financial expenses
Item Current Year Last Year
Interest expenditure 13,185,503.15 16,913,382.96
Less: Interest income 83,240,562.07 66,581,155.37
Add: exchange loss -35,883,923.32 -9,470,041.33
193
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
Item Current Year Last Year
Procedure charge expenditure 7,339,147.69 6,582,921.01
Discount expenditure -17,235,858.76 -11,270,142.69
Interest expense on lease liability 821,767.04 1,038,707.46
Total -115,013,926.27 -62,786,327.96
53. Other income
Item Current Period Last Period
Salary, extra charges and labor service expenses 4,165,995.12 6,981,697.33
Multi-level capital market capital reward 4,000,000.00
Demonstration factory construction for the intelligent manufacturing of
3,759,493.68 3,759,493.66
intelligent air-conditioner
Award funds for supporting the development of China Sound Valley 3,255,000.00 4,385,000.00
Demolition compensation of Changhong Meiling 1,291,710.66 1,291,710.56
Adaptability improvement on new coolants production 1,182,490.86 1,182,490.86
Key chips, modules and testing capacity building projects for inverters 760,000.02
VISA (Variable Frequency Integrated Smart Air Conditioning System)
704,651.16 704,651.16
research and application
District-level subsidy funds for advanced manufacturing policies in the
689,300.00
first half of 2022
Personal tax handing fee refund 648,855.83 597,590.71
Subsidy for industrial development policy from Hefei for first half of
625,000.00 625,000.00
2018
High-tech enterprise awards 600,000.00
Changhong Air Conditioner- relocation of production base and
573,333.36 573,333.33
upgrading & expansion
Centre for external cooperation of the environmental protection 515,754.53 515,754.53
Subsidy for industrial development policy from Hefei for second half of
447,137.50 447,137.50
2019
Municipal award and subsidy for the advanced manufacturing policy in
421,341.18 373,062.50
first half of 2020
District-level subsidy funds for advanced manufacturing policies in the
393,553.84 373,056.26
first half of 2021
Industrialization of intelligent white household appliances software
363,636.36 363,636.36
platform and typical application research and development
Manufacturing industry digital network project subsidy 327,285.42
Manufacturing strong province policy funds, industrial strong base
312,500.00 312,500.00
technical transformation equipment subsidies
Subsidies for intelligent transformation & upgrading of enterprises from
302,837.50 302,837.50
the new industrialization policy in economic development zone
2020 subsidy for advancing technological transformation projects 267,962.50 267,962.50
Government subsidy for new plant construction - industrialization of
250,000.00 250,000.00
cryogenic refrigeration equipment
Subsidy for industrial development policy from Hefei for first half of
217,300.00 217,300.00
2020
Stable post subsidies 216,067.21 2,266,011.87
Provincial policy subsidy funds for strong manufacturing province of
214,945.06 203,750.00
2021
194
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
Item Current Period Last Period
Special funds for strategic emerging industry and high-end growth
206,896.50 206,896.55
industry
Air conditioning production line upgrade technical transformation
172,750.29 113,903.75
project
2020 supporting funds to support the innovation and development of
171,428.58 162,500.00
artificial intelligence industry
2020 fund allocation for Anhui Province's triple innovation project 162,500.00 162,500.00
Promoting the new industry (annual output of 0.6 million medium&
152,206.17 152,206.26
large volume environmental protection and energy saving freezer)
Subsidy from Zhongshan Finance Bureau (CZ028001 provincial special
150,951.43 152,823.25
project 2019)
R&D and application of frequency conversion control MCU chips 143,750.00
21 District-level high-quality development policy (the second batch)
130,644.80
award and subsidy funds
Equipment subsidies for industrial strong base technology
117,500.00 117,500.00
transformation projects by the Economic and Information Commission
Energy-saving room air conditioner promotion project 105,154.62 105,154.62
21 years of high-quality policy industrial Internet project award and
4,663,100.00
subsidy
22 Provincial foreign trade funds (key and brand markets, enterprise
2,500,000.00
market development)
Supporting the industrial internet construction and scene application 2,000,000.00
Promotion of insurance 1,819,544.22
Dispersed to collected for tablet in Nanjing Port 1,165,095.00
2022 Provincial industrial development special funds 1,000,000.00
Support the linage development of enterprises in the region 716,000.00
2021 Anhui Science & technology support funds for major special
500,000.00
projects
2021 advanced manufacturing development policy 500,000.00
Award of innovation for the new third board 500,000.00
Demolition compensation of Jiangxi Meiling 404,839.96
Other petty projects 4,308,322.48 5,389,351.57
Total 32,328,256.66 48,325,391.81
54. Investment income
Item Current Period Last Period
Long-term equity investment income by equity method 12,544,969.44 8,971,315.55
Investment income obtained from disposal of Trading financial
-7,608,161.73 7,825,971.39
assets
Investment income of other non-current financial assets during
11,409,029.33 1,784,208.22
holding period
Income from financial products 4,821,923.13 76,200.80
The termination of income recognition for financial assets measured
-14,192,040.21 -10,198,142.54
by amortized cost
Interest income from debt investment during the holding period 7,402,220.09 5,356,708.33
Total 14,377,940.05 13,816,261.75
195
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
55. Changes in fair value gains
Item Current Period Last Period
Trading financial assets 15,221,223.22 30,187,709.04
Including :Income of fair value changes from derivative
14,587,494.15 29,478,307.89
financial instruments
Interest accrual for wealth management products 633,729.07 709,401.15
Trading financial liability -71,649,406.65 -26,624,972.00
Including: Income of fair value changes from derivative
-71,649,406.65 -26,624,972.00
financial instruments
Total -56,428,183.43 3,562,737.04
56. Credit impairment loss
Item Current Period Last Period
Account receivable bad debt loss -42,428,408.08 -50,863,838.62
Other account receivable bad debt loss 1,346,818.25 397,219.49
Total -41,081,589.83 -50,466,619.13
57. Assets impairment loss
Item Current Period Last Period
Loss on inventory valuation
-16,752,702.16 -28,983,106.69
Impairment loss on contractual assets -1,414,633.73 -808,716.15
Total -18,167,335.89 -29,791,822.84
58. Asset disposal income
Amount reckoned
into non-recurring
Item Current Period Last Period
gains/losses in
Current Period
Income from disposal of non current assets 8,358,775.10
Among them: income from disposal of non
current assets held for sale
Income from disposal of non current assets
not classified as held for sale
8,358,775.10
Including: Income from disposal of fixed
assets
4,141,767.54
Income from disposal of intangible assets 4,217,007.56
Total 8,358,775.10
59. Non-operation revenue
196
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
Amount reckoned
into non-recurring
Item Current Period Last Period
gains/losses in
Current Period
Income of penalty 4,888,567.59 567,772.74 4,888,567.59
Profit from disposal of non-current
36,750.89 321,759.27 36,750.89
assets
Other 5,778,701.32 2,021,355.78 5,778,701.32
Total 10,704,019.80 2,910,887.79 10,704,019.80
60. Non-operating expenditure
Amount reckoned
into non-recurring
Item Current Period Last Period
gains/losses in
Current Period
Non-current asset retirement losses 2,758,202.88 1,142,293.89 2,758,202.88
Penalty and late fee 16,581.94 2,264.75 16,581.94
Other 240,014.40 1,188,402.19 240,014.40
Total 3,014,799.22 2,332,960.83 3,014,799.22
61. Income tax expenses
Item Current Period Last Period
Current income tax 8,379,498.72 16,329,432.39
Deferred Income Tax -7,454,488.68 -26,445,005.85
Total 925,010.04 -10,115,573.46
62. Other comprehensive income
Found more in 43. Other comprehensive income in VI
63. Items of cash flow statement
(1) Cash received (paid) from (for) other activities relating to operation/investment/financing
1) Cash received from other activities relating to operation
Item Current Period Last Period
Cash deposit, deposit 24,366,520.52 19,397,785.91
Government subsidy and rewards 13,652,143.10 31,397,968.22
Rental income 2,985,657.33 3,346,435.18
Compensations 1,718,745.99 1,724,086.13
Petty cash collection 140,806.43 62,136.33
Collection of restriction fund 14,531,658.71
197
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
Item Current Period Last Period
Other 3,021,399.10 2,347,265.99
Total 45,885,272.47 72,807,336.47
2) Cash paid for other activities relating to operation
Item Current Period Last Period
Market expenses 79,956,267.39 82,409,839.91
Rental fee 57,695,362.23 52,784,034.29
Petty cash, deposit, Cash deposit 36,861,764.06 22,367,764.50
Travel expenses, meeting fees and exhibition
20,534,988.95 13,095,827.32
fees
Inspection and certification fee, certification
18,485,143.97 14,909,635.84
charge and reviewing fee
Service support fee 14,138,646.01 15,879,324.80
Transportation and vehicle costs 13,537,381.24 7,774,128.45
Business activity fee 13,330,172.38 10,637,980.89
Technological cooperation costs and
10,091,050.83 13,589,880.67
consulting charge
Repair fee 8,093,631.17 13,247,556.80
Handling fee 5,048,350.85 5,441,203.36
Labor fee 3,896,600.30 1,277,408.41
Advertising fee 3,821,240.00 4,240,519.54
Office expenses 3,729,327.85 3,180,729.46
Communication costs 876,307.59 1,061,789.96
Board expenses 258,739.56 277,495.67
Convert to restricted funds 85,623,704.49
Other expenses 55,255,105.13 43,501,646.82
Total 345,610,079.51 391,300,471.18
3) Cash received from other activities relating to investment
Item Current Period Last Period
Interest income arising from bank savings 81,700,559.42 64,456,820.07
Income of forward exchange settlement 1,303,892.65 8,021.82
Cash deposit 956,132.70 1,182,376.24
Total 83,960,584.77 65,647,218.13
4) Cash paid for other activities relating to investment
Item Current Period Last Period
Loses of forward exchange settlement 13,791,587.29 7,635,033.86
Refund the bid security of the engineering
500,000.00
project
Total 14,291,587.29 7,635,033.86
198
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
5) Cash received from other activities relating to financing
Item Current Period Last Period
Collection of restriction fund 220,652,668.19
Meiling series (internal) bill discounting
26,054,470.31 84,181.37
fundraising
Total 246,707,138.50 84,181.37
6) Cash paid for other activities relating to financing
Item Current Period Last Period
Convert to restricted funds 134,086,488.59 420,619,026.50
Meiling series (internal) bill discounting
23,536,567.33 2,341,617.17
fundraising
Lease liability principal and interest 2,353,526.71 7,095,354.40
Handling charge of dividend 65,600.34 36,509.97
Payment for B share repurchase 737,262.35
Financing lease 175,323.88
Intermediary service fee 1,345,000.00
Total 160,042,182.97 432,350,094.27
(2) Supplementary of the consolidated cash flow statement
Item Current amount Previous period amount
1. Net profit is adjusted to cash flow of operation
activities:
Net profit 369,929,382.64 72,694,901.46
Add: provision for depreciation of assets 39,369,845.61 60,861,695.16
Depreciation of fixed assets, consumption of oil gas
112,075,611.84 112,530,324.02
assets and depreciation of productive biological assets
Amortization of intangible assets 74,830,332.62 74,908,844.79
Depreciation of right-of-use assets 4,155,504.30 6,170,422.64
Amortization of long-term retained expense 1,235,884.46 19,080.92
Loss from disposal of fixed assets, intangible assets and
-8,358,775.10
other long term assets (gain is listed with “-”)
Loss from discarding fixed assets as useless (gain is listed
2,721,451.99 -820,534.62
with “-”)
Loss from change of fair value (gain is listed with “-”) 56,428,183.43 -3,562,737.04
Financial expense (gain is listed with “-”) -105,938,982.24 -59,137,813.74
Investment loss (gain is listed with “-”) -14,377,940.05 -13,816,261.75
Decrease of deferred income tax assets (increase is listed
-4,935,498.56 -25,663,712.30
with “-”)
Increase of deferred income tax liabilities (decrease is
-2,518,990.12 -781,293.55
listed with “-”)
Decrease of inventories (increase is listed with “-”) -590,146,519.04 -262,649,097.49
Decrease of operational accounts receivable (increase is
-1,555,010,894.69 -410,183,298.77
listed with “-”)
Increase of operational accounts receivable (decrease is
3,022,702,437.62 1,103,933,518.50
listed with “-”)
199
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
Item Current amount Previous period amount
Other -71,092,045.78
Net cash flow arising from operation activities 1,410,519,809.81 575,053,217.35
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 7,245,577,241.32 5,237,646,245.54
Less: Opening balance of cash 6,113,222,069.76 5,840,194,931.57
Add: Balance at period-end of cash equivalents
Less: Opening balance of cash equivalents
Net increase in cash and cash equivalents 1,132,355,171.56 -602,548,686.03
(3) No net cash paid for subsidiary obtained in Current Period
(4) No net cash received from subsidiary disposal in Current Period
(5) Cash and cash equivalent
Item Current Period Last Period
Cash 7,245,577,241.32 6,113,222,069.76
Including: cash in stock 35,553.71 21,243.42
Bank deposits available for payment at any time. 7,245,487,226.37 6,113,166,932.47
Other monetary fund available for payment at any time 54,461.24 33,893.87
Cash equivalents
Including: bond investment due within 3 months
Balance of cash and cash equivalents at period-end 7,245,577,241.32 6,113,222,069.76
Including: using the restricted cash and cash equivalents of the
parent company or subsidiary of the group
64. Assets with ownership or the right to use restricted
Book value at period-
Item Reasons
end
Monetary fund 632,210,953.32 Margin, Fixed Deposit, Frozen Funds
Receivables financing note 1 444,382,921.22 Pledged
Investment real estate note 2 3,187,831.55 Mortgage
Fixed assets note 2 327,828,701.10 Mortgage
Intangible assets note 2 268,471,718.52 Mortgage
1,676,082,125.71
Total
200
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
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.
65. Foreign currency
(1) Foreign currency
Ending foreign currency Ending RMB converted
Item Exchange rate
balance balance
Monetary fund 168,929,106.19
Including: USD 4,780,088.89 7.2258 34,539,966.30
Euro 7,892,305.66 7.8771 62,168,480.91
GBP 1,062.07 9.1432 9,710.72
AUD 8,639,694.65 4.7992 41,463,622.56
HKD 3,298.06 0.9220 3,040.81
Pakistan Rupi 917,605,931.39 0.0252 23,123,669.47
IDR 11,708,623,592.40 0.000483 5,655,265.20
PHP 14,500,815.74 0.1303 1,889,456.29
KRW 13,811,452.23 0.005495 75,893.93
Account receivable 1,263,350,903.51
Including: USD 150,034,843.91 7.2258 1,084,121,775.12
Euro 7,401,823.08 7.8771 58,304,900.58
GBP 453,936.78 9.1432 4,150,434.77
AUD 10,637,854.25 4.7992 51,053,190.12
KRW 3,359,631,340.00 0.005495 18,461,174.21
Pakistan Rupi 468,374,237.54 0.0252 11,803,030.79
IDR 69,882,620,637.81 0.000483 33,753,305.77
PHP 13,070,546.07 0.1303 1,703,092.15
Other account receivable 1,959,571.87
Including: USD 143,670.83 7.2258 1,038,136.68
Pakistan Rupi 5,796,393.39 0.0252 146,069.11
IDR 1,427,128,226.00 0.000483 689,302.93
PHP 660,500.00 0.1303 86,063.15
Account payable 49,230,856.69
Including: USD 132,118.93 7.2258 954,664.96
Euro 13,419.32 7.8771 105,705.33
Pakistan Rupi 828,101,628.02 0.0252 20,868,161.03
201
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
Ending foreign currency Ending RMB converted
Item Exchange rate
balance balance
IDR 45,205,388,984.00 0.000483 21,834,202.88
PHP 41,965,636.91 0.1303 5,468,122.49
Other account payable 9,168,564.96
Including: USD 7,528.00 7.2258 54,395.82
Pakistan Rupi 307,952,031.04 0.0252 7,760,391.18
IDR 2,263,910,878.00 0.000483 1,093,468.95
PHP 1,997,766.79 0.1303 260,309.01
(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.
66. 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:
Item of
Book value of the hedging balance sheet
Item
instrument on 30 June 2023 with hedging
instrument
Fair value hedges
Exchange rate risk-forward foreign exchange contracts and Trading
72,248,082.82
definite commitments not yet confirmed, etc. financial assets
Tradable
Exchange rate risk-forward foreign exchange contracts and
113,610,931.43 financial
definite commitments not yet confirmed, etc.
liabilities
67. Government subsidy
Amount
reckoned into
Item Amount Item
current
gain/loss
VAT refund on software products 4,165,995.12 Other income 4,165,995.12
Multi-level capital market capital reward 4,000,000.00 Other income 4,000,000.00
202
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
Amount
reckoned into
Item Amount Item
current
gain/loss
Award funds for supporting the development of China
3,255,000.00 Other income 3,255,000.00
Sound Valley
Refund of individual tax handling fee 648,855.83 Other income 648,855.83
High-tech Enterprise Award 600,000.00 Other income 600,000.00
Stable job subsidies 216,067.21 Other income 216,067.21
Deferred
22 years of digital network intelligent upgrading project 517,000.00
income
Manufacturing industry digital network project Deferred
600,000.00 327,285.42
subsidies income
Other petty projects 3,745,613.83 Other income 3,745,613.83
Total 17,748,531.99 16,958,817.41
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: nil
6. Subsidiary newly established: nil
7. Subsidiary merger by absorption：nil
VIII. Equity in other entity
1. Equity in subsidiary
(1) Composition of the enterprise group
Shareholding ratio（%)
Mainoffice Registration Business
Subsidiary Indirect Acquireby
place place nature Directly
ly
Zhongke Meiling Cryogenic Technology Manufacturing Investment
Hefei Hefei 47.4512
Co., Ltd1) and sales establishment
Software
Sichuan Hongmei Intelligent Technology Investment
Mianyang Mianyang 100
Co., Ltd.2) development establishment
Manufacturing Investment
Mianyang Meiling Refrigeration Co., Ltd.3) Mianyang Mianyang 95 5
and sales establishment
203
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
Shareholding ratio（%)
Mainoffice Registration Business
Subsidiary Indirect Acquireby
place place nature Directly
ly
Jiangxi Meiling Electric Appliance Co., Jingdezhen Jingdezhen Manufacturing Investment
98.75 1.25
Ltd. 4) and sales establishment
Software
Hefei Meiling Wulian Technology Co., Investment
Hefei Hefei 100
Ltd5） development establishment
Hefei Meiling Electric Appliances Investment
Hefei Hefei Sales 99.82 0.18
Marketing Co., Ltd6) establishment
Wuhan Meizhirong Electric Appliances Investment
Wuhan Wuhan Sales 92
Marketing Co., Ltd7) establishment
Enterprise
Hefei Meiling Nonferrous Metal Products Manufacturing combined not
Hefei Hefei 100
Co., Ltd.8) and sales under the same
control
Enterprise
Changhong Meiling Ridian Technology Manufacturing combined
Zhongshan Zhongshan 99.0361
Co., Ltd.9） and sales under the same
control
CHANGHONG MEILING ELECTRIC Jakapta Jakapta Investment
Sales 100
INDONESIA,PT 10） establishment
ChanghongRubaTradingCompany Pakistan Pakistan Investment
Sales 60
（Private）Limited 11) establishment
Enterprise
Sichuan Changhong Air-conditioner Co., Manufacturing combined
Mianyang Mianyang 100
Ltd12) and sales under the same
control
Enterprise
Manufacturing combined
Zhongshan Changhong Electric Co., Ltd13) Zhongshan Zhongshan 90 10
and sales under the same
control
Enterprise
Manufacturing combined not
Hefei Meiling Group Holdings Limited14) Hefei Hefei 100
and sales under the same
control
Enterprise
Meiling Equator Household Appliance Manufacturing combined not
Hefei Hefei 100
(Hefei) Co., Ltd.15) and sales under the same
control
Enterprise
Manufacturing combined not
Hefei Equator Appliance Co., Ltd16) Hefei Hefei 100
and sales under the same
control
Ground Energy Heat Pump Tech. Co., Manufacturing Investment
Mianyang Mianyang 51
Ltd.17) and sales establishment
Ground Energy Heat Pump Tech. Manufacturing Investment
Zhongshan Zhongshan 51
(Zhongshan) Co., Ltd. 18) and sales establishment
Guangzhou Changhong Trading Co., Guangzhou Guangzhou Investment
Sales 100
Ltd.20） establishment
Hebei Hongmao Daily Appliance Handan Handan Manufacturing Investment
99.0361
Technology Co., Ltd.21） and sales establishment
Manufacturing Investment
Anhui Tuoxing Technology Co., Ltd.22） Hefei Hefei 47.4512
and sales establishment
CH-Meiling.International (Philippines) Investment
Philippines Philippines Sales 100
Inc.22） establishment
Hefei Changhong Meiling Life Appliances Investment
Hefei Hefei Sales 70
Co., Ltd. 24） establishment
Anhui Ling'an Medical Equipment Co., Ltd Manufacturing Investment
Lu'an Lu'an 47.4512
25） and sales establishment
204
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
Note：
1) Zhongke Meiling Cryogenic Technology Co., Ltd. (hereinafter referred to as Zhongke Meiling), the
predecessor of which was Zhongke Meiling Cryogenic Technology Limited Liability Company, was
established on 29 October 2002 by joint contribution from the Company and Technical Institute of Physics
and Chemistry, CAS (“TIPC”), with registered capital of 60 million yuan upon the establishment, among
which, the Company made capital contribution of 42 million yuan (including the assets in specie at the
consideration of35,573,719.70 yuan as evaluated by Beijing Zhongzheng Appraisal Co., Ltd. with issuance of
the Appraisal Report (ZZPBZ(2002)No.029) and cash contribution of 6,426,280.30 yuan) accounting for 70%
of the aforesaid registered capital, and TIPC made capital contribution of 18 million yuan with intangible
assets of such value (namely the single compressor mixture industrial low temperature refrigeration
technology) as evaluated by Jingzhongzi Assets Appraisal Co., Ltd. with issuance of the Appraisal Report
(ZZPBZ(2002)No.225) accounting for 30% of the aforesaid registered capital. The paid-in of the above
registered capital has been verified by Huazheng Accounting Firm by issuance of the Assets Verification
Report (HZYZ (2002) No. B157) dated 16 October 2002.
In October 2014, according to the relevant provision under the Management Rules on Application of State
Owned Assets by Central Business Organs, TIPC transferred the 30% equity interests held by it in Zhongke
Meiling Cryogenic Technology Company Limited to its wholly-owned subsidiary Zhongke Xianxing (Beijing)
Assets Management Co., Ltd (hereinafter referred to as Zhongke Xianxing) which would perform management
over the operating assets of TIPC. Upon consideration and approval at the 37th session of the 7thBOD of Hefei
Meiling Co., Ltd, it is agreed to waive the pre-emptive right.
On 10 August 2015, all the founders signed the Founder Agreement of Zhongke Meiling Cryogenic
Technology Company Limited, pursuant to which, they decided to change the firm type of Zhongke Meiling
Cryogenic Technology Company Limited to a joint stock company. Based on the net assets of 96, 431,978.25
yuan as audited by Xinyong Zhonghe CPA as of 30 June 2015, an aggregate of 65,000,000 shares have been
converted at the proportion of 1:0.67, which are to be held by the original shareholders according to their
respective entitlement. In case that the net assets exceed registered capital, the balance shall be recorded in
capital reserve. On 28 August 2015, Xinyong Zhonghe CPA reviewed the registered capital and paid-in thereof
in respect of the stock reform, and issued Assets Verification Report (XYZH/2015CDA40161). The Company
registered industrial and commercial information on 11 September 2015.
On November 25, 2016, the first Extraordinary Shareholders' General Meeting of Zhongke Meiling Cryogenic
Technology Co., Ltd. in 2016 considered and approved the Proposal on the Issuance Plan of the Company;
Zhongke Meiling Company issued 3,150,000 shares to specific investors by the non-public offering of shares
at 1.63 yuan per share. The current capital increase was verified by the No.［XYZH/2016CDA40294］capital
verification report issued by ShineWing CPA (special general partnership). After the completion of the
issuance, the share capital of Zhongke Meiling Company increased to 68,150,000 shares and the Company's
shareholding ratio was 66.76%.
205
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
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 47.4512%.
2) Sichuan Hongmei Intelligent Technology Co., Ltd. (hereinafter referred to as Hongmei Intelligent) was
established on Jan. 24, 2014. It is a limited company jointly invested by the Company and Mianyang Meiling
Refrigeration Co., Ltd., being approved by the Industrial and Commerce Bureau of Peicheng District,
Mianyang City. The company owes registered capital of 5 million yuan, including 4.95 million yuan
contributed by Changhong Meiling Company in cash, accounted for 99% of the registered capital; Mianyang
Meiling Refrigeration Co., Ltd. contributed 50000 yuan in cash with 1% of the register capital occupied. The
above mentioned register capital have been verified by verification report of Chuanjinlai Yanzi No. [2014]
B039 issued by Sichuan Jinlai Accounting Firm Co., Ltd. In July 2016, the shares of Hongmei Intelligent, held
by the Company has transferred to Sichuan Changhong AC Co., Ltd., after transferred, Changhong AC has
99% equity of Hongmei Intelligent, the Company has no shares of Hongmei Intelligent directly.
3) Mianyang Meiling Refrigeration Co., Ltd. (hereinafter referred to as Mianyang Meiling), a limited
liability company jointly set up by the Company and China-tech Meiling Company, was founded on Mar. 6,
206
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
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.
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
207
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
verified by verification report of [Wan Hua Shen Zheng Da Kuai Yan Zi (2010) No. 1514] issued by Anhui
Hua Shen Zhengda CPA Co., Ltd.
7) Wuhan Meizirong Electrical Marketing Co., Ltd (hereinafter referred to as Wuhan Meizirong) was
established dated 10 January 2011 with registered capital of 5 million yuan; Meiling Marketing invested 4.60
million yuan, accounted for 92% of the registered capital.
8) Hefei Meiling Nonferrous Metal Products Co., Ltd. (hereinafter referred to as Nonferrous Metal) was the
Sino-foreign joint venture jointly set up by original Meiling Group, Hefei Meiling Copper Co., Ltd. And Singapore Kim
Shin Development Co., Ltd., which have been originally approved by the [WJMWFZZ (1996) No.349] of Foreign
Trade and Economic Committee of Anhui Province. Its registered capital was US$ 2.92 million upon
establishment, of which, original Meiling Group invested US$ 1.46 million (monetary capital), accounting 50%
of the registered capital, Hefei Meiling Copper Co., Ltd invested US$ 0.584 million (monetary capital of RMB 0.18
million and real assets of US$ 0.404 million), accounting 20% of registered capital while Singapore Kim Shin
Development Co., Ltd invested US$ 0.876 million (monetary capital), accounting 30% of the registered capital.
The above mentioned investment verified by the verification report of [HSWZ (1995) No. 0737], [HSWZ
(1996) No. 328] and [HSWZ (1998) No. 088] from Anhui CPAs Co., Ltd. In July 2008, approved by [HWS
(2008) No.53] from Foreign Trade Economic Cooperation Bureau of Hefei City, 30% equity and 20% equity
held by Singapore Kim Shin Development Co., Ltd and Hefei Meiling Copper Co., Ltd respectively transferred to
original Meiling Group Totally. The Company’s register capital came into 24,286,808.00 yuan after
transference, and was not the joint-venture any more.
9) Changhong Meiling Ridian Technology Co., Ltd. (hereinafter referred to as Ridian Technology) is a
limited liability company invested and established by Sichuan Changhong Electric Co., Ltd. (hereinafter
referred to as Sichuan Changhong) and Sichuan Changhong Motor Transport Co., Ltd. (hereinafter referred to
as Changhong Motor Transport Company) on May 25, 2016. The registered capital and paid-in capital are 40
million yuan, of which Sichuan Changhong has invested 32 million yuan by monetary capital, accounting for
80% of the registered capital; Changhong Motor Transport Company has invested 8 million yuan, accounting
for 20% of the registered capital. The official receipts of 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].
208
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
On February 18, 2009, seven natural person shareholders transferred total 0.76% stock rights to Hu Zhiheng,
after the transfer, the registered capital of Changhong Ridian was still 83 million yuan, the structure of
registered capital after changes was that Sichuan Changhong invested 33.8 million yuan, accounting for
40.72%; Guangdong Xiongfeng Electric Co., Ltd. invested 40 million yuan, accounting for 48.19%; Sichuan
Changhong Venture Investment Co., Ltd invested 8 million yuan, accounting for 9.64%; Hu Zhiheng and other
two natural person shareholders invested 1.2 million yuan, accounting for 1.45%.
On October 9, 2014, Changhong Ridian held the shareholders meeting which considered and agreed Kou
Huameng to transfer its stock rights of total 250,000 yuan which accounts for 0.301% of the Ridian
Technology’s registered capital to Sichuan Changhong Venture Investment Co., Ltd at the cost of 317,802
yuan. The other shareholders of the Ridian Technology waived the right of pre-emption. On December 11,
2014, Ridian Technology held the shareholders meeting which considered and agreed Guangdong Xiongfeng
Electric Co., Ltd. to transfer its stock rights of total 40 million yuan which accounts for 48.19 % of the
company's registered capital to Sichuan Changhong Electric Co., Ltd. at the cost of 43,977,300 yuan. The other
shareholders of the Ridian Technology waived the right of pre-emption. The structure of registered capital after
changes was that Sichuan Changhong invested 73.8 million yuan, accounting for 88.92%; Sichuan Changhong
Venture Investment Co., Ltd Invested 8.25 million yuan, accounting for 9.94%; Hu Zhiheng and another
natural person shareholder invested 950,000 yuan, accounting for 1.14%.
On 4 January 2016, Sichuan Changhong and Sichuan Changhong Venture Investment Co., Ltd. transferred
total 98.855% equity of the Ridian Technology to the Company. After the transfer, the Company directly holds
98.855% stock rights of Ridian Technology.
On 7 April 2020, Ridian Technology convened the shareholders’ meeting, and agreed the Wu Chang yuan
to transferred total 0.18% equity of the Ridian Technology to the Company. After the transfer, the Company
directly holds 99.0361% stock rights of Ridian Technology.
10) CHANGHONG MEILING ELECTRIC INDONESIA, PT.(hereinafter referred to as Indonesia Meiling)
is a subsidiary established in Indonesia and jointly invested by Zhongshan Changhong and Sichuan Changhong
in 2016, the company’s registered capital is 6 million US dollars, of which Zhongshan Changhong subscribed
and paid 5.88 million US dollars in cash, accounting for 98% of the registered capital, Changhong Air
Conditioning subscribed and paid 120,000 US dollars in cash, accounting for 2% of the registered capital. On
4 July 2017, rests of the 2.94 million US dollars are subscribed by Zhongshan Changhong in line with the
agreement.
11) Changhong Ruba Trading Company (Private) Limited (hereinafter referred to as Changhong Ruba)
was a joint venture established by Zhongshan Changhong Appliances Company Limited and RUBA
GENERAL TRADING FZE Company (“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
209
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
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 Zhongshan Changho
ng and the UAE RUBA company will jointly increase the capital of ChanghongRuba. , the shares held by bo
th parties remain unchanged. After the capital increase, the registered capital of ChanghongRuba is US$13,0
04,923, of which Zhongshan Changhong contributed US$7,802,954 in cash, holding 60% of the shares, and
RUBA of the United Arab Emirates contributed US$5,201,969 in cash, holding 40% of the shares.
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
210
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
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 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
211
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
yuan after transference, and was not the joint-venture any more. 25% equity owned by Anhui Meiling Electric
Co., Ltd has been transferred totally to original Meiling Group in July 2009.
16) Hefei Equator Appliance Co., Ltd. (hereinafter referred to as Equator Appliance) was jointly set up by
original Meiling Group and Yingkaite Appliance on September 26, 2007. Its register capital was 12 million yuan,
among which, original Meiling Group invested 8,670,600 yuan in monetary capital, accounting 72.255% in
registered capital; Equator Appliance invested 3,329,400 yuan in the assessment value of intangible assets
(land-use right), accounting 27.745% of total registered capital. The investment being verified by [WYAZ
(2004) No. 135] from Anhui Yongan CPAs Co., Ltd.
17) Hong Yuan Ground Energy Heat Pump Technology Co., Ltd. (hereinafter referred to as Hong Yuan
Ground Energy) was established on 28 August 2015, it is a limited liability company authorized by
Administration for Industry and Commerce of Peicheng District, Mianyang, Sichuan, contributed by Sichuan
Changhong Air Conditioner Co., Ltd (hereinafter referred to as Changhong Air Conditioner) and Hengyou
yuan Technology Development Group Co., Ltd. together. Registered capital amounted as 50 million yuan,
including 25.5 million yuan contributed by Changhong Air Conditioner in cash, a 51% in total registered
capital; Hengyou yuan Technology Development Group Co., Ltd. invested 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 31,2020, the Company has
invested US$ 1,000,000,
212
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
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% 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% 4,356,392.82 9,149,568.12 311,620,837.36
Ground Energy 49.00% -938,293.89 24,002,637.56
Ridian
0.9639% -18,264.67 1,315,437.58
Technology
Meiling Life
30.00% 7,129,392.33 7,527,442.51 31,785,077.47
Appliances
(3) Financial information for major non-wholly-owned subsidiary
Ending balance
Subsidiary Current Non-current Current Non-current
Total assets Total liabilities
assets assets liability liability
Zhongke
603,508,047.37 151,052,578.84 754,560,626.21 146,845,445.84 14,702,770.79 161,548,216.63
Meiling
Ground
280,925,952.01 16,282,068.93 297,208,020.94 248,047,384.10 175,662.22 248,223,046.32
Energy
Ridian
221,343,407.05 40,177,681.73 261,521,088.78 124,557,450.91 486,989.56 125,044,440.47
Technology
Meiling Life
552,729,372.79 275,528.66 553,004,901.45 447,054,643.21 447,054,643.21
Appliances
(Continued)
213
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
Opening balance
Subsidiary Current Non-current Current Non-current
Total assets Total liabilities
assets assets liability liability
Zhongke
649,452,399.30 157,673,698.36 807,126,097.66 190,256,989.79 15,715,771.32 205,972,761.11
Meiling
Ground
190,767,892.48 18,222,456.16 208,990,348.64 158,674,964.71 214,658.38 158,889,623.09
Energy
Ridian
231,271,013.10 42,012,672.36 273,283,685.46 135,113,073.14 538,894.36 135,651,967.50
Technology
Meiling Life
559,068,082.42 224,882.24 559,292,964.66 452,015,872.49 452,015,872.49
Appliances
(Continued)
Current Period
Subsidiary Total
Operation Cash flow from
Net profit comprehensive
income operation activity
income
Zhongke Meiling 144,766,155.52 8,290,186.98 8,290,186.98 -13,661,569.66
Ground Energy 276,522,437.81 -1,914,885.50 -1,914,885.50 -87,545,869.73
Ridian
105,403,861.00 -1,894,959.92 -1,894,959.92 10,295,047.76
Technology
Meiling Life
775,737,017.98 23,764,641.11 23,764,641.11 50,850,277.81
Appliances
(Continued)
Last Period
Subsidiary Total
Operation Cash flow from
Net profit comprehensive
income operation activity
income
Zhongke
235,704,905.75 34,977,067.97 34,977,067.97 -22,750,957.05
Meiling
Ground Energy 50,705,949.97 -5,712,646.53 -5,712,646.53 -63,167,443.52
Ridian
121,903,975.39 1,833,690.30 1,833,690.30 -2,113,312.10
Technology
Meiling Life
618,374,856.05 8,755,357.31 8,755,357.31 47,550,153.24
Appliances
(4) Major limitation on using enterprise group’s assets and liquidate debts of enterprise group: nil
(5) Offering financial supporting or other supports for structured entity that included in consolidation
statement scope: nil
2. Changes of owner’ equity shares in subsidiary and its impacts: nil
3. Equity in joint venture or associate enterprise
(1) Major joint venture or associate enterprise
214
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
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 R & D, sales,
Mianyang Mianyang 49.00 Equity
Tech. 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
Hefei Sichuan Hong Yuan Sichuan Chengdu
ChanghongR
Item Xingmei Zhiyijia Ground Tianyou Guigu
ubaElectricCo
Assets Network Energy Guigu Environmen
mpany(Privat
Managemen Technology Co., Heat Tech. Technology tal Tech.
e)Ltd.
t Co., Ltd. Ltd. Co., Ltd. Co., Ltd. Co., Ltd
Current assets 62,529,324.52 30,335,123.03 2,740,899,469.94 34,245,689.07 12,618,841.18 38,973,338.86
Including: cash
and cash 961,904.81 30,289,160.83 6,159,949.66 30,374.25 4,312,689.73 29,446,573.43
equivalent
Non-current
24,273,312.30 - 14,014,037.24 26,881.03 12,352.49 1,183,886.51
assets
Total assets 86,802,636.82 30,335,123.03 2,754,913,507.18 34,272,570.10 12,631,193.67 40,157,225.37
Current liability 151,666,691.64 1,146,747.64 2,627,537,908.62 647,139.81 792,985.57 9,793,973.98
Non-current
- - 5,470,322.55 - 11,616.40 2,697,843.01
liability
Total liabilities 151,666,691.64 1,146,747.64 2,633,008,231.17 647,139.81 804,601.97 12,491,816.99
Minority's
1,092,993.99
interest
Equity
attributable to
-64,864,054.82 29,188,375.39 121,905,276.01 33,625,430.29 11,826,591.70 26,572,414.39
shareholder of
parent company
Share of net
assets measured -25,945,621.93 14,092,147.64 60,952,638.01 16,476,460.84 2,956,647.93 6,643,103.60
by shareholding
Adjustment
--Goodwill 821,877.28 1,416,227.93
Unrealized profit
- 12,929.58 11,303.50 6,074.85
of the internal
215
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
Balance at year-end/Current Year
Hefei Sichuan Hong Yuan Sichuan Chengdu
ChanghongR
Item Xingmei Zhiyijia Ground Tianyou Guigu
ubaElectricCo
Assets Network Energy Guigu Environmen
mpany(Privat
Managemen Technology Co., Heat Tech. Technology tal Tech.
e)Ltd.
t Co., Ltd. Ltd. Co., Ltd. Co., Ltd. Co., Ltd
downstream
transactions
Unrealized profit
of the internal
upstream
transactions
Other 25,945,621.93
Book value of
the equity
investment for - 14,092,147.64 61,774,515.29 16,463,531.26 2,945,344.43 8,053,256.68
associate
enterprise
Fair value of
equity
investment for
the affiliates with
consideration
publicly
Operation
11,940,445.57 - 5,238,453,286.91 2,371,427.43 2,197,630.99 1,810,893.32
income
Financial
11,216.86 -43,456.82 -19,188,756.89 244.40 -52,908.82 -256,294.31
expenses
Income tax
144,001.23 - 3,112,952.18 -
expenses
Net profit -29,900,142.32 -17,952.29 23,268,872.28 -1,232,689.06 -693,291.38 -1,814,859.16
Other
comprehensive 7,582,766.35 - -
income
Total
comprehensive -22,317,375.97 -17,952.29 23,268,872.28 -1,232,689.06 -693,291.38 -1,814,859.16
income
Dividend
received from
associate 5,793,600.00 1,629,022.64
enterprise in
Current Year
(Continued)
Balance at year-begin /Last Year
Hefei Sichuan Hong Yuan Sichuan Chengdu
Changhong
Items Xingmei Zhiyijia Ground Tianyou Guigu
Ruba Electric
Assets Network Energy Guigu Environmen
Company(Pri
Managemen Technology Co., Heat Tech. Technology tal Tech.
vate)Ltd.
t Co., Ltd. Ltd. Co., Ltd. Co., 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 cash 4,921,365.69 45,763,227.65 14,808,208.88 29.18 5,469,142.38 23,853,311.23
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
216
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
Balance at year-begin /Last Year
Hefei Sichuan Hong Yuan Sichuan Chengdu
Changhong
Items Xingmei Zhiyijia Ground Tianyou Guigu
Ruba Electric
Assets Network Energy Guigu Environmen
Company(Pri
Managemen Technology Co., Heat Tech. Technology tal Tech.
vate)Ltd.
t Co., Ltd. Ltd. Co., Ltd. Co., Ltd. Co., Ltd
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
liability
1,632,200.33 2,731,542.18
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
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 -17,018,671.54 19,899,176.44 51,028,302.33 17,080,478.48 3,129,970.77 7,095,973.29
by shareholding
Adjustment
--Goodwill 821,877.28 1,416,227.93
Unrealized profit
of the internal
downstream
61,436.67 19,388.90 6,752.44
transactions
Unrealized profit
of the internal
upstream
transactions
Other 17,018,671.54
Book value of
the equity
investment for 19,899,176.44 51,850,179.61 17,019,041.81 3,110,581.87 8,505,448.77
associate
enterprise
Fair value of
equity
investment for
the affiliates with
consideration
publicly
Operation
income
114,113,833.32 - 5,469,059,501.77 94,133.06 3,778,843.34 24,509,987.79
Financial
expenses
70,820.09 -27,341.72 -22,176,910.19 267.75 -57,394.00 -289,738.80
Income tax
expenses
1,215,849.99 3,252,674.65 554,942.41
Net profit -14,180,304.24 9,758,023.96 1,646,585.39 -1,163,205.15 260,813.27 123,763.39
Other
comprehensive 2,115,738.30
income
Total
comprehensive -12,064,565.94 9,758,023.96 1,646,585.39 -1,163,205.15 260,813.27 123,763.39
income
Dividend
received from 5,069,400.00
associate
217
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
Balance at year-begin /Last Year
Hefei Sichuan Hong Yuan Sichuan Chengdu
Changhong
Items Xingmei Zhiyijia Ground Tianyou Guigu
Ruba Electric
Assets Network Energy Guigu Environmen
Company(Pri
Managemen Technology Co., Heat Tech. Technology tal Tech.
vate)Ltd.
t Co., Ltd. Ltd. Co., Ltd. Co., Ltd. Co., Ltd
enterprise in
Current Year
(4) Major limitation on capital transfer ability to the Company from joint venture or affiliates: Nil
(5) Excess loss occurred in joint venture or affiliates
Hefei Xinmeitai Energy Technology Co., Ltd and ChanghongRubaElectricCompany(Private)Ltd
have losses above the quota.
(6) Unconfirmed commitment with joint venture investment concerned: Nil
(7) Intangible liability with joint venture or affiliates investment concerned: Nil
(8) Contingent liabilities related to joint venture or associated enterprise investment :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
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
218
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
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 June 30,2023 is RMB
-41,362,848.61. Changes in the fair value of derivative financial instruments have been included in the profit
and loss, and the relevant contents of "VI. 55 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
June 30,2023, the Company's interest-bearing debts were mainly the fixed-rate loan contracts denominated
in RMB, with a total amount of RMB 881,064,263.12; and the RMB floating-rate loan contracts, with a total
amount of RMB 158,000,000.00. 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 June 30,2023, 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 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
219
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
five accounts receivable is RMB 1,735,301,853.62, accounting for 59.31% 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 72,248,082.82 120,633,729.07 192,881,811.89
1.Financial assets measured at fair
value and whose changes are 72,248,082.82 120,633,729.07 - 192,881,811.89
included in current gains/losses
Including: Derivative financial
72,248,082.82 72,248,082.82
assets
Principal and Interest of
120,633,729.07 120,633,729.07
Wealth Management Products
(ii) Other non-current financial
81,060,223.94 547,489,224.37 628,549,448.31
assets
(iii) Receivables financing 1,604,435,165.24 1,604,435,165.24
Total assets continuously
72,248,082.82 201,693,953.01 2,151,924,389.61 2,425,866,425.44
measured at fair value
(iv) Trading financial liability 113,610,931.43 113,610,931.43
1. Financial liabilities measured by
fair value and with variation 113,610,931.43 113,610,931.43
reckoned into current gains/losses
Including: Derivative financial
113,610,931.43 113,610,931.43
liability
Total liabilities continuously
113,610,931.43 113,610,931.43
measured at fair value
2. The basis for determining the market price of continuous and non-continuous first-level fair value
measurement items
220
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
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
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
4,616,244,222.00 27.36% 27.36%
Ltd. ng and sales
Sichuan Changhong Electronics Holding Group is the controlling shareholder of Sichuan Changhong
Electric Co., Ltd., and the SASAC Mianyang office holds90% equity interests of Sichuan Changhong
Electronic Holding Group, which means that SASAC Mianyang office is the ultimate controller of the
Company.
(2) Register capital and change thereof of controlling shareholder
221
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
Increase Decrease
Controlling shareholder Opening balance Ending balance
this period this period
Sichuan Changhong Electric Co., Ltd. 4,616,244,222.00 4,616,244,22.00
(3) Shares held by the controlling shareholder and its changes on equity
Amount of shares held Shareholding ratio
Controlling shareholder Ratio at
Ratio at
Ending balance Opening balance period-
period-end
beginning
Sichuan Changhong Electric Co.,
281,832,434.00 281,832,434.00 27.36% 27.36%
Ltd.
2. Subsidiary
Found more in Note “VIII. 1 (1) Enterprise group composition”
3. Joint venture and associated enterprise
Major Joint venture and associated enterprise of the Company found more in Note “VIII. 3 (1) major
joint venture and associated enterprise”. Other Joint venture and associated enterprise that have related
transactions occurred with the Company in Current Period or occurred in last period, and with balance
results:
Joint venture and associated enterprise Relationship with the company
Associated enterprise of subsidiary Zhongshan
Changhong Ruba Electric Company(Private)Ltd
Changhong
Associated enterprise of the Company, has the same
Sichuan Zhiyijia Network Technology Co., Ltd.
controlling shareholder and actual control of the Company
Associated enterprise of subsidiary Changhong Air-
Hong Yuan Ground Energy Heat Tech. Co., Ltd
conditioner
Associated enterprise of subsidiary Changhong Air-
Sichuan Tianyou Guigu Technology Co., Ltd
conditioner
Associated enterprise of subsidiary Changhong Air-
Chengdu Guigu Environmental Tech. Co., Ltd
conditioner
4. Other related party
Other related party Relationship with the company
Control by same controlling shareholder and ultimate
Sichuan Changhong International Travel Service Co., Ltd
controller
Control by same controlling shareholder and ultimate
CHANGHONG.ELECTRIC.(AUSTRALIA) PTY.LTD.
controller
Control by same controlling shareholder and ultimate
CHANGHONG ELECTRIC MIDDLE EAST FZCO
controller
Control by same controlling shareholder and ultimate
Sichuan Changhong Electronic Products Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Hefei Changhong New Energy Technology Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Sichuan Changhong Moulding Tech. Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Changhong Europe Electric s.r.o
controller
222
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
Other related party Relationship with the company
Control by same controlling shareholder and ultimate
Changhong Huayi Compressor Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Sichuan Changhong Jijia Fine Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Sichuan Changhong Minsheng Logistics Co., Ltd.
controller
Sichuan Kuaiyidian Electric Appliance Service Chain Co., Control by same controlling shareholder and ultimate
Ltd controller
Control by same controlling shareholder and ultimate
Sichuan Changhong Precision Electronics Tech. Co., Ltd.
controller
Control by same controlling shareholder and ultimate
CHANGHONG (HK) TRADING LIMITED
controller
Control by same controlling shareholder and ultimate
Sichuan Changhong Device Technology Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Chengdu Changhong Electronic Technology Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Sichuan Hongwei Technology Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Sichuan Changhong Real Estate Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Sichuan Changhong New Energy Technology Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Hefei Changhong Industrial Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Changhong International Holdings (Hong Kong) Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Guangdong Changhong Electronics Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Sichuan Changhong Package Printing Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Sichuan Changhong Jineng Sunshine Technology Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Sichuan Changhong Power Source Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Sichuan Hongxin Software Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Sichuan Changhong Network Technology Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Yuanxin Financial Lease Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Orion.PDP.Co.,ltd
controller
Control by same controlling shareholder and ultimate
081 Electronic Group Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Sichuan Changhong International Hotel Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Sichuan Aichuang Science & Technology Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Sichuan Ailink Technology Co., Ltd.
controller
Sichuan Changhong Intelligent Manufacturing Technology Control by same controlling shareholder and ultimate
Co., Ltd. controller
Control by same controlling shareholder and ultimate
Sichuan Changhong Property Service Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Sichuan Jiahong Industrial Co., Ltd.
controller
Sichuan Changhong Gerun Environmental Protection Tech. Control by same controlling shareholder and ultimate
Co., Ltd. controller
Control by same controlling shareholder and ultimate
Sichuan Huafeng Enterprise Group Co., Ltd.
controller
223
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
Other related party Relationship with the company
Control by same controlling shareholder and ultimate
Sichuan Changhong Group Finance Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Mianyang Huafeng Hulian Technology Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Sichuan Changhong Jiahua Information Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Sichuan Qisai Microelectronic Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Yibin Hongxing Electric Co., Ltd.
controller
Mianyang Science & Technology City Big Data Technology Control by same controlling shareholder and ultimate
Co., Ltd. controller
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
Enterprises where the supervisor of the controlling
Mianyang High tech Zone Hongfu Technology Co., Ltd
shareholder serves as its legal representative
Control by same controlling shareholder and ultimate
Sichuan Hongmofang Network Technology Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Sichuan Qiruik Technology Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Sichuan Changhong Jihuang Lithium Technology Co., LTD
controller
Control by same controlling shareholder and ultimate
Sichuan Ansifei Technology Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Guangyuan Hongcheng Industrial Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Sichuan Aiku Technology Co., Ltd.
controller
(ii) Related transactions
1. Purchasing commodity
Current Whether
Last Year
Year Approved the
Related party Content trading trading
(In 10 (In 10
quota limit is
thousand thousand
exceeded
yuan) yuan)
Sichuan Changhong Moulding Tech. Purchasing
47,227.00 100,000.00 N 42,116.85
Co., Ltd. commodity
Sichuan Changxin Refrigeration Parts Purchasing
40,002.29 31,020.99
Co., Ltd. commodity
Sichuan Changhong Jijia Fine Co., Purchasing
29,862.39 65,000.00 N 24,772.90
Ltd. commodity
Changhong Huayi Compressor Co., Purchasing
25,980.62 54,000.00 N 19,308.27
Ltd. commodity
Purchasing
Mianyang Highly Electric Co., Ltd. 25,317.48 4,722.10
commodity
Sichuan Changhong Electronic Co., Purchasing
21,647.30 65,000.00 N 21,990.58
Ltd. commodity
224
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
Current Whether
Last Year
Year Approved the
Related party Content trading trading
(In 10 (In 10
quota limit is
thousand thousand
exceeded
yuan) yuan)
Sichuan Aichuang Science & Purchasing
7,075.57 20,000.00 N 5,142.93
Technology Co., Ltd. commodity
Sichuan Changhong Package Printing Purchasing
6,932.79 20,000.00 N 7,365.41
Co., Ltd. commodity
Sichuan Changhong Electronic Purchasing
2,034.05 3,000.00 N 1,608.43
Products Co., Ltd. commodity
Sichuan Changhong Precision Purchasing
1,776.19 4,500.00 N 1,157.30
Electronics Tech. Co., Ltd. commodity
Changhong International Holdings Purchasing
1,538.32 12,000.00 N 202.84
(Hong Kong) Co., Ltd. commodity
Purchasing
Sichuan Aoku Technology Co., Ltd. 1,155.21 5,000.00 N 1.82
commodity
Changhong Ruba Electric Company Purchasing
1,110.98 5,950.36
(Private) Ltd. commodity
Purchasing
Sichuan Ailink Technology Co., Ltd. 868.04 5,000.00 N 460.43
commodity
Sichuan Changhong Electronic Purchasing
559.39 8,000.00 N 506.18
Products Co., Ltd. commodity
Sichuan Zhiyijia Network Technology Purchasing
461.50 8,000.00 N 178.81
Co., Ltd. commodity
Guangdong Changhong Electronics Purchasing
400.10 8,000.00 N 259.46
Co., Ltd. commodity
Purchasing
Hefei Changhong Industrial Co., Ltd. 385.14 8,000.00 N 337.45
commodity
Sichuan Hongran Green Energy Co., Purchasing
90.89 53.80
Ltd. commodity
Purchasing
081 Electronic Group Co., Ltd. 5.30 8,000.00 N
commodity
Sichuan Hongwei Technology Co., Purchasing
4.06 8,000.00 N
Ltd. commodity
Sichuan Changhong New Energy Purchasing
2.40 5,000.00 N 1.91
Technology Co., Ltd. commodity
Sichuan Hongyu Metal Manufacturing Purchasing
1.47
Co., Ltd. commodity
Purchasing
Sichuan Jiahong Industrial Co., Ltd. 0.33 5,000.00 N
commodity
Sichuan Service Exp. Appliance Purchasing
0.18 8,000.00 N
Service Chain Co., Ltd. commodity
Purchasing
Sichuan Changhong Source Co., Ltd. 0.18 8,000.00 N
commodity
Sichuan Changhong Intelligent Purchasing
0.05 5,000.00 N
Manufacturing Technology Co., Ltd. commodity
Sichuan Changhong International Purchasing
1.17
Hotel Co., Ltd. commodity
Sichuan Changhong New Energy Purchasing
16.35
Technology Co., Ltd. commodity
Sichuan Changhong Property Service Purchasing
1.35
Co., Ltd. commodity
Total 214,439.22 167,177.69
2. Accept the services
225
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
Wheth
er the
tradin
Approved
Related party Content Current Year g limit Last Year
trading quota
is
excee
ded
Sichuan Changhong Minsheng Accept the
368,497,783.26 820,000,000.00 N 305,201,100.86
Logistics Co., Ltd. services
Sichuan Service Exp. Appliance Accept the
180,747,221.09 450,000,000.00 N 109,136,334.24
Service Chain Co., Ltd. services
Sichuan Changhong Moulding Accept the
19,178,221.81 100,000,000.00 N 11,317,706.85
Tech. Co., Ltd. services
Sichuan Qiruik Technology Co., Accept the
5,854,992.14 50,000,000.00 N 5,330,162.67
Ltd. services
Accept the
Sichuan Jiahong Industrial Co., Ltd. 4,181,446.86 50,000,000.00 N 3,427,635.77
services
Sichuan Changhong Electric Co., Accept the
2,012,125.83 100,000,000.00 N 1,638,694.39
Ltd. services
Sichuan Changhong Jijia Fine Co., Accept the
1,585,419.16 100,000,000.00 N 6,655,258.49
Ltd. services
Sichuan Changxin Refrigeration Accept the
1,443,843.02 7,029,331.97
Part Co., Ltd. services
Accept the
Sichuan Hongxin Software Co., Ltd. 763,205.18 100,000,000.00 N 2,962,845.28
services
Sichuan Changhong Electronics Accept the
455,179.68 50,000,000.00 N 385,868.01
Holding Group Co., Ltd. services
Mianyang High tech Zone Hongfu Accept the
454,323.56 2,000,000.00 N
Technology Co., Ltd services
Guangdong Changhong Electronics Accept the
361,166.90 100,000,000.00 N 188,394.36
Co., Ltd. services
Sichuan Changhong Gerun Accept the
202,167.22 50,000,000.00 N
Environmental protection Co., Ltd. services
Sichuan Changhong Electric Accept the
162,049.81 100,000,000.00 N
Produst Co., Ltd. services
Sichuan Changhong Intelligent
Accept the
Manufacturing Technology Co., 94,339.62 50,000,000.00 N 73,130.53
services
Ltd.
Sichuan Changhong Property Accept the
73,423.50 50,000,000.00 N 54,068.60
Service Co., Ltd. services
Sichuan Zhiyijia Network Accept the
69,357.35 100,000,000.00 N 103,710.82
Technology Co., Ltd. services
Sichuan Changhong International Accept the
64,235.80 50,000,000.00 N 36,610.36
Hotel Co., Ltd. services
Sichuan Changhong International Accept the
16,928.77 50,000,000.00 N
Hotel Co., Ltd. services
Chengdu Guigu Environmental Accept the
122,389.38
Tech. Co., Ltd services
Total 586,217,430.56 453,663,242.58
3. Sales of goods
Current Period Last Period
Content
Related party (in 10 thousand (in 10 thousand
Yuan) Yuan)
Sichuan Zhiyijia Network Technology Co., Ltd. Sales of goods 375,670.47 343,895.21
CHANGHONG (HK) TRADING LIMITED Sales of goods 38,739.78 17,413.91
CHANGHONGELECTRIC(AUSTRALIA)PTY.LTD. Sales of goods 5,714.99 7,001.05
Changhong Europe Electric s.r.o Sales of goods 4,109.31 305.51
226
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
Current Period Last Period
Content
Related party (in 10 thousand (in 10 thousand
Yuan) Yuan)
Changhong International Holdings (Hong Kong) Co.,
Sales of goods 5,017.47 8,393.61
Ltd.
Orion.PDP.Co.,ltd Sales of goods 1,964.81 2,814.00
Sichuan Changhong Intelligent Manufacturing
Sales of goods 258.76
Technology Co., Ltd
Sichuan Service Exp. Appliance Service Chain Co.,
Sales of goods 253.80 302.53
Ltd.
Sichuan Tianyou Guigu Technology Co., Ltd. Sales of goods 94.29 69.49
Sichuan Changhong Model Technology Co., Ltd. Sales of goods 57.00 365.27
Sichuan Changhong Minsheng Logistics Co., Ltd. Sales of goods 44.03 16.16
Sichuan Changhong Electronic Co., Ltd. Sales of goods 30.23 23.92
Guangyuan Changhong Electric Co., Ltd. Sales of goods 22.45 13.79
Sichuan Tianyou Guigu Technology Co., Ltd. Sales of goods 18.32 14.17
Sichuan Baiku Technology Co., Ltd. Sales of goods 9.61 62.74
Guangdong Changhong Electric Co., Ltd. Sales of goods 7.23 2.27
Sichuan Changhong Source Co., Ltd. Sales of goods 5.46
Sichuan Qisai Microelectronics Co., Ltd. Sales of goods 4.99
Sichuan Hongmofang Network Technology Co., Ltd. Sales of goods 4.33
Sichuan Changhong Appliance Technology Co., Ltd. Sales of goods 4.05 15.38
Sichuan Aiku Technology Co., Ltd. Sales of goods 0.77 23.01
Sichuan Aichuang Technology Co., Ltd. Sales of goods 0.73 2.19
Sichuan Changhong Electric Holding Group Co., Ltd. Sales of goods 0.26
Sichuan Qiruk Technology Co., Ltd. Sales of goods 0.23
Sichuan Ansifei Technology Co., Ltd. Sales of goods 0.01
Changhong Ruba Electric Company (Private) Ltd. Sales of goods 1,028.84
CHANGHONG ELECTRIC MIDDLE EAST FZCO Sales of goods 446.27
Hong Yuan Ground Energy Heat Tech. Co., Ltd. Sales of goods 5.10
Sichuan Huafeng Technology Co., Ltd. Sales of goods 35.31
Sichuan Changhong Real Estate Co., Ltd. Sales of goods 9.72
Changhong Huayi Compressor Co., Ltd. Sales of goods 7.31
Sichuan Changhong Jijia Fine Co., Ltd. Sales of goods 7.89
Sichuan Changhong Precision Electronic Technology
Sales of goods 0.72
Co., Ltd.
Total 432,033.38 382,275.37
4. Provide the services
Current
Related party Content Last Period
Period
Provide the 1,239,722.2 1,172,476.5
Sichuan Service Exp. Appliance Service Chain Co., Ltd.
services 0 5
Provide the
Guangdong Changhong Electronics Co., Ltd. 486,725.66
services
Provide the
Sichuan Changhong Moulding Tech. Co., Ltd. 393,122.08 133,161.41
services
Provide the
Sichuan Changhong Minsheng Logistics Co., Ltd. 367,086.07 174,099.76
services
Provide the
Yuanxin Financial Lease Co., Ltd. 185,532.18 95,673.53
services
227
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
Current
Related party Content Last Period
Period
Provide the
Sichuan Changhong Property Service Co., Ltd. 135,593.96 85,797.50
services
Provide the
Sichuan Zhiyijia Network Technology Co., Ltd. 131,027.58 8,355.62
services
Provide the
Sichuan Changhong Device Technology Co., Ltd. 124,018.93 80,064.14
services
Provide the
Changhong Huayi Compressor Co., Ltd. 116,943.63 355,407.86
services
Provide the
Sichuan Aichuang Technology Co., Ltd, 111,462.81 -789,703.69
services
Provide the
Mianyang Huafeng Hulian Technology Co., Ltd. 93,625.64
services
Provide the
Sichuan Hongwei Technology Co., Ltd. 69,735.85
services
Sichuan Changhong Precision Electronic Technology Co., Provide the
58,326.34 37,577.54
Ltd services
Provide the
Sichuan Qisai Microelectronics Co., Ltd. 44,593.58
services
Provide the
Sichuan Changhong International Hotel Co., Ltd. 31,608.80 16,528.32
services
Provide the
Sichuan Changhong Electric Co., Ltd. 28,299.02 -326,514.20
services
Provide the
Sichuan Changhong Electronic Products Co., Ltd. 4,500.00
services
Sichuan Changhong Precision Electronic Technology Co., Provide the
2,700.00
LT services
Provide the
Sichuan Qiruik Technology Co., Ltd. 1,314.00 1,332.00
services
Provide the
Sichuan Aoku Technology Co., Ltd. 1,081.72 156,191.31
services
Provide the
Sichuan Ailian Technology Co.,Ltd. 80.94
services
Provide the
Hefei Changhong Industrial Co., Ltd. 42.50 220.00
services
Provide the
Sichuan Huafeng Enterprise Group Co., Ltd. 366,055.05
services
Provide the
Sichuan Changxin Refrigeration Parts Co., Ltd. 229,524.66
services
Provide the
Sichuan Changhong Jiechuang Lithium Technology Co., Ltd. 25,619.68
services
Provide the
Guang yuan Hongcheng Industrial Co., Ltd. 45,871.56
services
3,627,143.4 1,867,738.6
Total
9 0
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
228
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
(1) Rent out
Leasing
income in Leasing income
Lessor Lessee Type of assets
Current in Last Period
Period
Apartments,
Changhong Sichuan Changhong Moulding Tech.
warehouses, 1,436,731.33 1,350,299.40
Meiling Co., Ltd.
factories
warehouse,
Changhong
Sichuan Changhong Jijia Fine Co., Ltd. apartment, forklift, 470,897.06 461,571.78
Meiling
warehouse
Apartments,
Changhong
Hefei Changhong Industrial Co., Ltd. warehouses, 146,562.74 303,237.74
Meiling
forklifts
Changhong Sichuan Changhong Minsheng
apartment, office 104,497.98 110,877.98
Meiling Logistics Co., Ltd.
Changhong Sichuan Zhiyijia Network Technology
Apartment 94,128.44 94,128.44
Meiling Co., Ltd.
Changhong Sichuan Aichuang Science &
Warehouse 84,571.19 117,660.00
Meiling Technology Co., Ltd.
Changhong
Sichuan Aoku Technology Co., Ltd. Warehouse 20,987.63 1,618.86
Meiling
Changhong Sichuan Aichuang Technology Co.,
Warehouse 19,507.00 18,759.84
Meiling Ltd.
Changhong
hanghong Huayi Compressor Co., Ltd. Warehouse 5,811.32
Meiling
Changhong
Sichuan Hongxin Software Co., Ltd. Apartment 4,400.00
Meiling
Changhong
Sichuan Ailian Technology Co., LTD. Warehouse 1,586.50 938.94
Meiling
Zhongshan Sichuan Changhong Precision
Apartment 1,105.00 47,700.00
Changhong Electronics Tech. Co., Ltd.
Apartments,
Changhong Sichuan Changhong Moulding Tech.
warehouses, 2,786,522.82 2,542,277.65
Meiling Co., Ltd.
factories
warehouse,
Changhong
Sichuan Changhong Jijia Fine Co., Ltd. apartment, forklift, 1,831,253.85 1,766,750.99
Meiling
warehouse
Changhong
Air- Sichuan Changhong Electric Co., Ltd. Workshop 448,648.03 1,511,579.46
conditioner
Changhong
Sichuan Changxin Refrigeration Parts Processing
Air- 79,999.99 126,666.66
Co., Ltd. equipment of U
conditioner
Changhong
Chengdu Guigu Environmental Tech. House and
Air- 14,201.83 14,201.83
Co., Ltd buildings
conditioner
Changhong
Sichuan Changhong Electronics
Air- Workshop 4.49
Holding Group Co., Ltd.
conditioner
Ridian Sichuan Changhong Device
Workshop 1,073,574.90 1,087,270.81
Technology Technology Co., Ltd.
Ridian
Sichuan Ailink Technology Co., Ltd. Workshop 47,314.29 47,314.29
Technology
Zhongshan Sichuan Changhong Precision
living area 42,000.00 42,000.00
Changhong Electronics Tech. Co., Ltd.
Zhongshan Sichuan Changhong Moulding Tech.
living area 24,900.00 32,400.00
Changhong Co., Ltd.
Zhongshan Sichuan Changhong Minsheng Parts of the office
22,148.58 22,148.58
Changhong Logistics Co., Ltd. building rent-out
229
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
Leasing
income in Leasing income
Lessor Lessee Type of assets
Current in Last Period
Period
Zhongshan Guangdong Changhong Electric Co.,
living area 14,221.47
Changhong Ltd.
Jiangxi Sichuan Changhong Moulding Tech.
Workshop 411,144.18 411,144.18
Meiling Co., Ltd.
Jiangxi Sichuan Changhong Minsheng
Warehouse 9,142.86
Meiling Logistics Co., Ltd.
Total 9,172,499.15 10,133,911.76
230
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
(2)Lessee of related parties
Variable lease
payments not
Rental charges for
included in lease Interest expenses on lease Increased use right
short-term and low- Rent paid
liabilities liabilities assumed assets
value assets (if any)
measurement (if
any)
Type of
Lessor Lessee
assets Amount of Amount of Amount Amount Amount of Amount of Amount of Amount of Amount of Amount of
current previous of of current previous current period previous current previous
period period current previous period period period period period
period period
Hefei Changhong Changhong Workshop
590,931.54 376,152.09 485,439.06 517,499.86
Industrial Co., Ltd. Meiling leasing
Sichuan Changhong Changhong
Staff
Electronics Holding Air- 64,694.40 62,774.40
dormitory
Group Co., Ltd. conditioner
Changhong
Sichuan Changhong VISA
Air- 170,589.02 153,431.50 17,157.52 1,534,315.05
Electric Co., Ltd. Laboratories
conditioner
Changhong
Sichuan Jiahong Staff
Air- 216,056.16 184,147.52
Industrial Co., Ltd. dormitory
conditioner
Chengdu Changhong
Hongmei
Electronic Technology Office 334,385.06 314,318.93 28,592.17 48,658.28
Intelligent
Co., Ltd.
Guangdong Changhong Hong yuan Staff
39,530.00 38,582.61
Electronics Co., Ltd. Zhongshan dormitory
Sichuan Changhong Mianyang Workshop
32,259.69 1,433,275.56 1,505,012.56 208,376.40 136,639.40
Electric Co., Ltd. Meiling leasing
231
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
Variable lease
payments not
Rental charges for
included in lease Interest expenses on lease Increased use right
short-term and low- Rent paid
liabilities liabilities assumed assets
value assets (if any)
measurement (if
any)
Type of
Lessor Lessee
assets Amount of Amount of Amount Amount Amount of Amount of Amount of Amount of Amount of Amount of
current previous of of current previous current period previous current previous
period period current previous period period period period period
period period
Sichuan Jiahong Mianyang Staff
16,664.37 9,723.82
Industrial Co., Ltd. Meiling dormitory
Guangdong Changhong Ridian Staff
28,660.58 65,766.19
Electronics Co., Ltd. Technology dormitory
Changhong Huayi Jiangxi Staff
44,310.17
Compressor Co., Ltd. Meiling dormitory
Chengdu Changhong
Hongmei
Electronic Technology Office 62,618.29
Intelligent
Co., Ltd.
Guangdong Changhong Zhongshan Workshop
677,103.12
Electronics Co., Ltd. Changhong leasing
Total 460,483.49 1,252,996.85 2,512,023.66 2,195,483.58 739,565.15 702,797.54 1,534,315.05
232
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
6. Related guarantee
Maximum guarantee Completed
amount Date (Y/N)
Secured party Sponsored party Start
due
(in 10 thousand Yuan)
2022/4/1 2023/4/1
Changhong Meiling Meiling Group 5,000.00 Y
8 8
2023/5/1 2024/5/1
Changhong Meiling Meiling Group 4,500.00 N
1 1
Meiling Life 2021/12/ 2022/11/
Changhong Meiling 4,000.00 Y
Appliances 9 2
Meiling Life 2022/1/2 2023/1/2
Changhong Meiling 3,000.00 Y
Appliances 6 6
Meiling Life 2022/3/1 2023/3/1
Changhong Meiling 5,000.00 Y
Appliances 6 6
Meiling Life 2022/8/2 2023/8/2
Changhong Meiling 500.00 N
Appliances 6 6
Meiling Life
Changhong Meiling 1,000.00 2022/9/8 2023/9/8 Y
Appliances
Meiling Life 2022/9/2 2023/9/2
Changhong Meiling 5,000.00 N
Appliances 2 1
Meiling Life 2022/10/ 2023/10/
Changhong Meiling 5,000.00 N
Appliances 26 25
Meiling Life 2022/12/ 2023/10/
Changhong Meiling 4,500.00 N
Appliances 8 24
Meiling Life 2023/2/2 2024/1/1
Changhong Meiling 8,000.00 N
Appliances 2 2
Meiling Life 2023/4/2 2024/4/2
Changhong Meiling 5,000.00 N
Appliances 1 1
Meiling Life 2023/4/2 2024/4/2
Changhong Meiling 2,000.00 N
Appliances 4 3
Changhong air- 2021/9/2 2022/9/2
Changhong Meiling 5,000.00 Y
conditioner 4 4
Changhong air- 2021/12/ 2022/12/
Changhong Meiling 15,000.00 Y
conditioner 7 6
Changhong air- 2022/3/1 2023/3/1
Changhong Meiling 8,000.00 Y
conditioner 8 7
Changhong air- 2022/4/1 2023/4/1
Changhong Meiling 30,000.00 Y
conditioner 8 8
Changhong air- 2023/1/1 2023/10/
Changhong Meiling 10,000.00 N
conditioner 7 11
Changhong air- 2023/1/1 2024/1/1
Changhong Meiling 5,000.00 N
conditioner 7 6
Changhong air- 2023/2/2 2024/2/2
Changhong Meiling 16,000.00 N
conditioner 7 6
Changhong air- 2023/3/1 2024/3/1
Changhong Meiling 30,000.00 N
conditioner 6 6
Changhong air- 2023/3/1 2024/3/1
Changhong Meiling 60,000.00 N
conditioner 8 8
Changhong air- 2023/4/1 2024/4/1
Changhong Meiling 12,000.00 N
conditioner 4 3
Changhong air- 2023/6/2 2023/12/
Changhong Meiling 3,500.00 N
conditioner 8 28
2022/3/2 2023/3/2
Changhong Meiling Ridian Technology 3,000.00 N
5 5
Changhong Meiling Ridian Technology 4,000.00 2022/7/7 2023/7/7 N
2022/10/ 2023/10/
Changhong Meiling Ridian Technology 2,000.00 N
25 24
2022/11/ 2023/11/
Changhong Meiling Ridian Technology 3,500.00 N
10 9
233
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
Maximum guarantee Completed
amount Date (Y/N)
Secured party Sponsored party Start
due
(in 10 thousand Yuan)
2022/9/2 2023/1/2
Changhong Meiling Zhongke Meiling 2,000.00 Y
0 7
2022/11/ 2023/6/1
Changhong Meiling Zhongke Meiling 5,000.00 N
14 9
Zhongshan 2022/2/1 2023/2/1
Changhong Meiling 2,000.00 Y
Changhong 5 4
Zhongshan 2022/3/1 2023/3/1
Changhong Meiling 6,000.00 Y
Changhong 5 5
Zhongshan 2022/3/2 2023/3/2
Changhong Meiling 7,000.00 Y
Changhong 8 9
Zhongshan 2022/4/2 2023/4/2
Changhong Meiling 18,000.00 N
Changhong 2 2
Zhongshan 2022/4/2 2023/4/2
Changhong Meiling 10,000.00 N
Changhong 2 2
Zhongshan 2022/6/1 2023/6/1
Changhong Meiling 13,000.00 N
Changhong 6 6
Zhongshan
Changhong Meiling 20,000.00 2022/7/2 2023/7/2 N
Changhong
Zhongshan 2022/8/1 2023/8/1
Changhong Meiling 15,000.00 N
Changhong 5 4
Zhongshan 2022/8/1 2023/8/1
Changhong Meiling 5,000.00 N
Changhong 9 9
Zhongshan 2023/3/1 2024/3/1
Changhong Meiling 6,000.00 N
Changhong 5 5
Zhongshan 2023/5/1 2024/5/1
Changhong Meiling 10,000.00 N
Changhong 1 0
Zhongshan 2023/5/3 2024/5/2
Changhong Meiling 10,000.00 N
Changhong 0 9
Zhongshan 2023/6/1 2024/6/1
Changhong Meiling 7,000.00 N
Changhong 5 4
2022/6/2 2023/6/2
Zhongke Meiling Anhui Tuoxing 500.00 Y
7 7
2023/6/2
Zhongke Meiling Anhui Tuoxing 1,000.00 2024/6/4 N
0
Counter guarantee:
2022/4/1 2023/4/1
Meiling Group Changhong Meiling 5,000.00 Y
8 8
2023/5/1 2024/5/1
Meiling Group Changhong Meiling 4,500.00 N
1 1
Meiling Life 2021/12/ 2022/11/
Changhong Meiling 4,000.00 Y
Appliances 9 2
Meiling Life 2022/1/2 2023/1/2
Changhong Meiling 3,000.00 Y
Appliances 6 6
Meiling Life 2022/3/1 2023/3/1
Changhong Meiling 5,000.00 Y
Appliances 6 6
Meiling Life 2022/8/2 2023/8/2
Changhong Meiling 500.00 N
Appliances 6 6
Meiling Life
Changhong Meiling 1,000.00 2022/9/8 2023/9/8 Y
Appliances
Meiling Life 2022/9/2 2023/9/2
Changhong Meiling 5,000.00 N
Appliances 2 1
Meiling Life 2022/10/ 2023/10/
Changhong Meiling 5,000.00 N
Appliances 26 25
Meiling Life 2022/12/ 2023/10/
Changhong Meiling 4,500.00 N
Appliances 8 24
Meiling Life 2023/2/2 2024/1/1
Changhong Meiling 8,000.00 N
Appliances 2 2
234
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
Maximum guarantee Completed
amount Date (Y/N)
Secured party Sponsored party Start
due
(in 10 thousand Yuan)
Meiling Life 2023/4/2 2024/4/2
Changhong Meiling 5,000.00 N
Appliances 1 1
Meiling Life 2023/4/2 2024/4/2
Changhong Meiling 2,000.00 N
Appliances 4 3
Changhong air- 2021/9/2 2022/9/2
Changhong Meiling 5,000.00 Y
conditioner 4 4
Changhong air- 2021/12/ 2022/12/
Changhong Meiling 15,000.00 Y
conditioner 7 6
Changhong air- 2022/3/1 2023/3/1
Changhong Meiling 8,000.00 Y
conditioner 8 7
Changhong air- 2022/4/1 2023/4/1
Changhong Meiling 30,000.00 Y
conditioner 8 8
Changhong air- 2023/1/1 2023/10/
Changhong Meiling 10,000.00 N
conditioner 7 11
Changhong air- 2023/1/1 2024/1/1
Changhong Meiling 5,000.00 N
conditioner 7 6
Changhong air- 2023/2/2 2024/2/2
Changhong Meiling 16,000.00 N
conditioner 7 6
Changhong air- 2023/3/1 2024/3/1
Changhong Meiling 30,000.00 N
conditioner 6 6
Changhong air- 2023/3/1 2024/3/1
Changhong Meiling 60,000.00 N
conditioner 8 8
Changhong air- 2023/4/1 2024/4/1
Changhong Meiling 12,000.00 N
conditioner 4 3
Changhong air- 2023/6/2 2023/12/
Changhong Meiling 3,500.00 N
conditioner 8 28
2022/3/2 2023/3/2
Ridian Technology Changhong Meiling 3,000.00 Y
5 5
Ridian Technology Changhong Meiling 4,000.00 2022/7/7 2023/7/7 N
2022/10/ 2023/10/
Ridian Technology Changhong Meiling 2,000.00 N
25 24
2022/11/ 2023/11/
Ridian Technology Changhong Meiling 3,500.00 N
10 9
2022/9/2 2023/1/2
Zhongke Meiling Changhong Meiling 2,000.00 Y
0 7
2022/11/ 2023/6/1
Zhongke Meiling Changhong Meiling 5,000.00 N
14 9
Zhongshan 2022/2/1 2023/2/1
Changhong Meiling 2,000.00 Y
Changhong 5 4
Zhongshan 2022/3/1 2023/3/1
Changhong Meiling 6,000.00 Y
Changhong 5 5
Zhongshan 2022/3/2 2023/3/2
Changhong Meiling 7,000.00 N
Changhong 8 9
Zhongshan 2022/4/2 2023/4/2
Changhong Meiling 18,000.00 N
Changhong 2 2
Zhongshan 2022/4/2 2023/4/2
Changhong Meiling 10,000.00 N
Changhong 2 2
Zhongshan 2022/6/1 2023/6/1
Changhong Meiling 13,000.00 N
Changhong 6 6
Zhongshan
Changhong Meiling 20,000.00 2022/7/2 2023/7/2 N
Changhong
Zhongshan 2022/8/1 2023/8/1
Changhong Meiling 15,000.00 N
Changhong 5 4
Zhongshan 2022/8/1 2023/8/1
Changhong Meiling 5,000.00 N
Changhong 9 9
Zhongshan 2023/3/1 2024/3/1
Changhong Meiling 6,000.00 N
Changhong 5 5
235
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
Maximum guarantee Completed
amount Date (Y/N)
Secured party Sponsored party Start
due
(in 10 thousand Yuan)
Zhongshan 2023/5/1 2024/5/1
Changhong Meiling 10,000.00 N
Changhong 1 0
Zhongshan 2023/5/3 2024/5/2
Changhong Meiling 10,000.00 N
Changhong 0 9
Zhongshan 2023/6/1 2024/6/1
Changhong Meiling 7,000.00 N
Changhong 5 4
2022/6/2 2023/6/2
Anhui Tuoxing Zhongke Meiling 500.00 Y
7 7
2023/6/2
Anhui Tuoxing Zhongke Meiling 1,000.00 2024/6/4 N
0
7. Assets transfer and debt reorganization of related parties
Related party Type Current Period Last Period
Purchase and construction
Sichuan Hongxin Software Co., Ltd. 902,404.42 1,570,283.02
of fixed assets
Sichuan Changhong Intelligent Purchase and construction
454,167.32 484,283.19
Manufacturing Technology Co., Ltd. of fixed assets
Purchase of intangible
Sichuan Qiruik Technology Co., Ltd. 288,000.00 65,575.22
assets
Sichuan Changhong Jiahua Information Purchase and construction
275,800.17
Product Co., Ltd. of fixed assets
Purchase of intangible
Sichuan Hongxin Software Co., Ltd. 121,115.04
assets
Sichuan Zhiyijia Network Technology Purchase and construction
15,700.88 8,407.06
Co., Ltd. of fixed assets
Sichuan Changhong Electric Holding
Construction of fixed assets 94,339.62
Group Co., Ltd.
Guangdong Changhong Electric Co., Purchase and construction
1,400,000.03
Ltd. of fixed assets
Mianyang Science & Technology City Purchase and construction
452,630.47
Big Data Technology Co., Ltd. of fixed assets
Guangdong Changhong Electric Co., Purchase and construction
600.00
Ltd. of fixed assets
Sichuan Aoku Technology Co., Ltd. Sale of fixed assets 121,030.34
Total 2,057,187.83 4,197,148.95
8. Other
Current Period
Last Period (in 10
Name of company Content (in 10 thousand
thousand Yuan)
Yuan)
Yuanxin Financial Lease Co., Ltd. Financing business 27,779.67 21,168.68
9. Related transaction with Changhong Finance Company
(1) Saving balance
Interest income
from bank
Name of company Ending balance Opening balance
saving in the
period
Changhong Meiling Co., Ltd. 1,678,581,284.90 1,576,180,731.79 24,420,468.15
Sichuan Changhong Air-conditioner Co., Ltd 994,133,142.82 975,985,071.65 2,732,065.52
236
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
Zhongshan Changhong Electric Co., Ltd 612,012,430.92 490,792,121.80 5,314,600.50
Hefei Changhong Meiling Life Appliances
258,498,612.95 218,066,151.18 2,638,830.02
Co., Ltd.
Changhong Meiling Ridian Technology Co.,
60,591,537.97 33,296,010.27 73,327.84
Ltd.
Zhongke Meiling Cryogenic Technology
50,250,799.45 50,619,272.37 723,647.93
Co., Ltd
Ground Energy Heat Pump Tech.
37,935,386.66 112,954,489.66 544,425.62
(Zhongshan) Co., Ltd.
Hefei Meiling Group Holdings Limited 374,150.85 207,918.41 7,959.12
Anhui Tuoxing Technology Co., Ltd. 370,905.95 84,076.99 3,450.91
Mianyang Meiling Refrigeration Co., Ltd. 12,549.94 21,366.13 29.67
Jiangxi Meiling Electric Appliance Co., Ltd. 9,647.03 9,626.58 20.35
Ground Energy Heat Pump Tech. Co., Ltd. 388.87 13,260.69 14.38
Hebei Hongmao Daily Appliance
6,769,834.89 5,676.52
Technology Co., Ltd.
Anhui Ling'an medical equipment Co., Ltd. 0.08
Total 3,692,770,838.31 3,464,999,932.49 36,464,516.53
(2) Discounted bills
Bank acceptance Bank acceptance Discounting fees
Name of company
Discounted face Amount of
Discounted amount
amount expenses
Changhong Meiling Co., Ltd. 45,050,403.14 44,778,201.03 272,202.11
Hefei Changhong Meiling Life Appliances
27,925,067.68 27,717,738.63 207,329.05
Co., Ltd.
Ground Energy Heat Pump Tech.
8,650,000.00 8,527,558.31 122,441.69
(Zhongshan) Co., Ltd.
Changhong Meiling Ridian Technology Co.,
3,373,116.42 3,338,859.99 34,256.43
Ltd.
Zhongshan Changhong Electric Co., Ltd. 2,858,022.00 2,832,172.78 25,849.22
Total 504,465,457.16 500,460,732.09 4,004,725.07
(3) Issuance of invoices
Name of company Issuer Bill amount Types
Sichuan Changhong Air-conditioner Sichuan Changhong Group
371,287,440.73 Bank acceptance
Co., Ltd. Finance Co., Ltd.
Zhongshan Changhong Electric Co., Sichuan Changhong Group
189,312,953.43 Bank acceptance
Ltd. Finance Co., Ltd.
Ground Energy Heat Pump Tech. Sichuan Changhong Group
50,537,817.32 Bank acceptance
(Zhongshan) Co., Ltd. Finance Co., Ltd.
Sichuan Changhong Group
Changhong Meiling Co., Ltd. 38,033,000.00 Bank acceptance
Finance Co., Ltd.
Hefei Changhong Meiling Life Sichuan Changhong Group
34,686,039.46 Bank acceptance
Appliances Co., Ltd. Finance Co., Ltd.
Zhongke Meiling Cryogenic Sichuan Changhong Group
19,409,740.60 Bank acceptance
Technology Co., Ltd. Finance Co., Ltd.
Sichuan Changhong Group
Hefei Meiling Group Holdings Limited 15,794,725.80 Bank acceptance
Finance Co., Ltd.
Changhong Meiling Ridian Technology Sichuan Changhong Group
2,306,895.18 Bank acceptance
Co., Ltd. Finance Co., Ltd.
Sichuan Changhong Group
Anhui Tuoxing Technology Co., Ltd. 165,015.95 Bank acceptance
Finance Co., Ltd.
237
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
Total 721,533,628.47
(4) Credit business or other financial business
Transaction
Name of company Current Period Last Period
content
Letter of
Sichuan Changhong Air-conditioner Co., Ltd 977,160.00
Guarantee
Letter of
Anhui Tuoxing Technology Co., Ltd. 330,000.00
Guarantee
合计 1,307,160.00
(5) Borrowings: Nil
(6) Receivable factoring: Nil
(iii) Come and go balance with related parties
1. Receivable items
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
539,464,163.23 69,242,984.55 440,272,480.19 68,442,866.04
receivable Technology Co., Ltd.
Account CHANGHONG(HK)TRADINGLIMI
141,439,425.71 60,041,559.36
receivable TED
Account Changhong International Holdings
60,281,239.65 1,137,912.73 53,357,857.70 1,137,912.73
receivable (Hong Kong) Co., Ltd.
Account Changhong Ruba Electric Company
41,610,466.18 41,610,466.18 41,456,983.76 41,456,983.76
receivable (Private) Ltd.
Account CHANGHONGELECTRIC(AUSTR
18,137,602.25 24,835,082.91
receivable ALIA)PTY.LTD.
Account
Orion.PDP.Co.,ltd 17,063,220.93 18,169,829.16 96,826.72
receivable
Account
Changhong Europe Electric s.r.o 5,629,392.29 9,350,935.09
receivable
Account Sichuan Changhong Intelligent
1,455,000.00
receivable Manufacturing Technology Co., Ltd.
Account
Yuanxin Financial Leasing Co., Ltd. 725,467.41 545,991.98
receivable
Account Sichuan Changhong Moulding Tech.
400,199.09 17,580.00
receivable Co., Ltd.
Account Hong Yuan Ground Energy Heat
342,203.53 52,037.28 342,203.53 57,322.40
receivable Tech. Co., Ltd
Account Sichuan Service Exp. Appliance
217,781.98 288,033.65
receivable Service Chain Co., Ltd.
Account
Aichuang Technology Co., Ltd. 163,326.13
receivable
Account Sichuan Changhong Electricl
156,709.00 240,063.11
receivable Holdings Group Co., Ltd.
Account Guangdong Changhong Electric Co.,
74,926.00 147,629.98
receivable Ltd.
Account Sichuan Changhong International
18,652.45
receivable Hotel Co., Ltd.
Account
Sichuan Changhong Electric Co., Ltd. 6,450.00 944,871.90
receivable
238
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise 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 Qiruke Technology Co., Ltd. 2,565.10
receivable
Account CHANGHONG ELECTRIC
755,784.47
receivable MIDDLE EAST FZCO
Account Changhong Huayi Compressor Co.,
432,726.15
receivable Ltd.
Account Sichuan Changhong Technology
8,204.00
receivable Seiko Co., Ltd.
Account Sichuan Changhong Minsheng
4,305.20
receivable Logistics Co., Ltd.
Account
Sichuan Changhong Property Service
paid in 1,613.85 1,613.85
Co., Ltd.
advance
Account
paid in Sichuan Ailian Technology Co., Ltd. 178.22 178.22
advance
Other
Sichuan Service Exp. Appliance
account 324,140.35 42,202.32
Service Chain Co., Ltd.
receivable
Other
Sichuan Changhong Electric
account 188,840.00 60,000.00
Appliance Co., Ltd
receivable
Other
Sichuan Yizhijia Network
account 150,000.00 200,000.00
Technology Co., Ltd.
receivable
Other
Sichuan Changhong Property Service
account 1,291.08 1,291.08
Co., Ltd.
receivable
Other
Changhong Huayi Compressor Co.,
account 267,000.00
Ltd.
receivable
Other Sichuan Changhong Jiechuang
129,000.00
receivable Lithium Technology Co., Ltd.
Other Sichuan Changhong Jijia Fine Co.,
17,232.50
receivable Ltd.
Total 827,854,854.43 112,043,400.74 651,930,640.11 111,191,911.65
2. Payable items
Item Related party Ending balance Opening balance
Account payable Sichuan Changhong Moulding Tech. Co., Ltd. 249,133,182.32 102,735,433.69
Account payable Sichuan Changhong Jijia Fine Co., Ltd. 180,770,211.84 48,446,852.70
Account payable Mianyang Highly Electric Co., Ltd. 118,086,019.73 7,021,268.99
Account payable Changhong Huayi Compressor Co., Ltd. 117,398,248.54 21,947,957.79
Account payable Sichuan Changxin Refrigeration Parts Co., Ltd. 69,294,864.46 14,948,871.57
Account payable Sichuan Changhong Package Printing Co., Ltd. 53,586,920.30 20,626,143.74
Sichuan Aichuang Science & Technology Co.,
Account payable 38,104,161.55 13,416,872.06
Ltd.
Account payable Sichuan Changhong Electric Co., Ltd. 35,195,271.65 24,051,245.19
Changhong Ruba Electric Company (Private)
Account payable 20,868,161.03 15,632,092.38
Ltd.
Changhong International Holdings (Hong Kong)
Account payable 16,914,284.22 17,634,983.97
Co., Ltd.
Sichuan Changhong Precision Electronics Tech.
Account payable 14,895,592.22 5,027,626.73
Co., Ltd.
239
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
Item Related party Ending balance Opening balance
Sichuan Changhong Electronic Products Co.,
Account payable 12,612,215.20 2,892,627.07
Ltd.
Sichuan Changhong Minsheng Logistics Co.,
Account payable 7,770,348.24 1,633,873.17
Ltd.
Account payable Sichuan Aoku Technology Co., Ltd. 7,590,346.25 8,194,344.79
Account payable Sichuan Ailink Technology Co., Ltd. 5,774,966.26 2,098,307.00
Sichuan Changhong Device Technology Co.,
Account payable 3,976,214.72 1,728,816.01
Ltd.
Account payable Sichuan Changhong Electronic Co., Ltd. 2,292,944.08 1,152,123.68
Sichuan Changhong Intelligent Manufacturing
Account payable 429,287.44 670,179.94
Technology Co., Ltd.
Sichuan Service Exp. Appliance Service Chain
Account payable 322,797.52 754,759.55
Co., Ltd.
Account payable Sichuan Hongxin Software Co., Ltd. 312,731.89 490,315.10
Account payable Hefei Changhong Industrial Co., Ltd. 263,441.56 13,283.74
Account payable Changhong International Holdings Co., Ltd. 134,472.00 99,873.00
Account payable Sichuan Hongwei Technology Co., Ltd. 45,382.30
Sichuan Changhong New Energy Technology
Account payable 27,120.00 27,120.00
Co., Ltd.
Account payable Chengdu Guigu Environmental Tech. Co., Ltd 15,743.36 34,717.86
Account payable Sichuan Zhiyijia Network Technology Co., Ltd. 6,928.31 8,752.84
Account payable Sichuan Qiruik Technology Co., Ltd. 2,000.00 6,805.20
Account payable 081 Electronic Group Co., Ltd. 53,026.90
Account payable Sichuan Hongyu Metal Manufacturing Co., Ltd. 14,662.40
Sichuan Changhong Electric Holding Group
Account payable 12,932.00
Co., Ltd.
Account payable Sichuan Changhong Source Co., Ltd. 1,831.62
Account payable Sichuan Jiahong Industrial Co., Ltd. 300.00
Account payable Sichuan Zhiyijia Network Technology Co., Ltd. 44,132,996.23 70,485.08
Contract liability Sichuan Aichuang Technology Co., Ltd. 2,310,280.68 1,961,333.35
Sichuan Changhong Jihuang Lithium
Contract liability 1,513,274.34
Technology Co., Ltd.
Contract liability Sichuan Changhong Electric Co., Ltd. 480,983.52 447,676.77
Contract liability Chengdu Guigu Environmental Tech. Co., Ltd 201,719.78 171,499.69
CHANGHONG ELECTRIC MIDDLE EAST
Contract liability 96,240.43 92,761.51
FZCO
Contract liability Yibin Hongxing Electric Co., Ltd. 43,362.83 43,362.83
Contract liability Sichuan Baiku Technology Co., Ltd. 27,747.79 71,396.02
Sichuan Changhong Minsheng Logistics Co.,
Contract liability 14,654.86
Ltd.
Sichuan Service Exp. Appliance Service Chain
Contract liability 10,727.89 10,174.94
Co., Ltd.
Sichuan Changhong Electric Holding Group
Contract liability 4,495.58 4,495.58
Co., Ltd.
Contract liability Sichuan Anshifei Technology Co., Ltd. 2,646.19 2,736.19
Contract liability CHANGHONG(HK)TRADINGLIMITED 927.01 893.51
Contract liability 081 Electronic Group Co., Ltd. 22.61 22.61
Contract liability Sichuan Changhong International Hotel Co., Ltd 0.88 0.88
Guangyuan Changhong Electric Technology
Contract liability 0.03 0.03
Co., Ltd.
Sichuan Changhong Intelligence Manufacturing
Contract liability 1,120,221.22
Technology Co., Ltd.
240
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
Item Related party Ending balance Opening balance
Contract liability Sichuan Qisai Microelectronic Co., Ltd. 65,599.81
Contract liability Hong Yuan Ground Energy Heat Tech. Co., Ltd 39,343.58
Contract liability Sichuan Changhong Source Co., Ltd. Td. 27,300.88
Lease liability Hefei Changhong Industrial Co., Ltd. 17,296,947.08 17,887,878.62
Lease liability Sichuan Changhong Electric Co., Ltd. 9,077,555.18 9,129,947.19
Chengdu Changhong Electronic Technology Co.,
Lease liability 317,874.83 10,468.90
Ltd.
Sichuan Service Exp. Appliance Service Chain
Other payable 129,278,514.59 80,970,437.14
Co., Ltd.
Sichuan Changhong Minsheng Logistics Co.,
Other payable 125,262,172.44 111,049,082.37
Ltd.
Other payable Yuanxin Financial Lease Co., Ltd. 73,326,571.95 79,112,334.67
Other payable Sichuan Changhong Moulding Tech. Co., Ltd. 2,475,958.28 2,700,501.98
Other payable Changhong Huayi Compressor Co., Ltd. 1,898,900.00 1,898,900.00
Other payable Sichuan Zhiyijia Network Technology Co., Ltd. 943,431.90 429,131.05
Other payable Sichuan Qiruik Technology Co., Ltd. 627,952.88 479,244.80
Other payable Sichuan Changhong Jijia Fine Co., Ltd. 400,500.00 400,500.00
Other payable Sichuan Aoku Technology Co., Ltd. 182,352.09 189,859.40
Other payable Sichuan Hongxin Software Co., Ltd. 149,600.00 160,000.00
Sichuan Changhong Intelligence Manufacturing
Other payable 109,596.00 255,867.10
technology Co., Ltd.
Other payable Sichuan Aichuang Technology Co., Ltd. 100,000.00 100,000.00
Other payable Sichuan Jiahong Industrial Co., Ltd. 74,316.41 74,316.41
Other payable Sichuan Changxin Refrigeration Parts Co., Ltd. 68,307.63 46,702.03
Other payable Sichuan Changhong Electric Appliance Co., Ltd 58,077.66 81,251.02
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
Sichuan Changhong Electronic Products Co.,
Other payable 50,000.00 50,000.00
Ltd.
Other payable Hefei Changhong Industrial Co., Ltd. 50,000.00 50,000.00
Other payable CHANGHONG(HK)TRADINGLIMITED 30,238.07 29,808.54
Other payable Sichuan Changhong Electric Co., Ltd. 22,807.68 38,429.50
Sichuan Changhong Precision Electronics Tech.
Other payable 497.72
Co., Ltd.
Sichuan Changhong Device Technology Co.,
Other payable 229.49
Ltd.
Sichuan Changhong Jineng Sunshine
Other payable 500,000.00
Technology Co., Ltd.
Total 1,366,566,339.51 621,251,965.88
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".
241
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
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 1,720,534.42 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: Nil
3. Major sales re turn : Nil
4. Other than the above mentioned events, the Company have no other events occurred after balance
sheet date.
XVI. Other significant matters
1. Correction of previous periods and influence: Nil
2. Debt restructuring: Nil
3. Assets replacement: Nil
4. Pension plan: Nil
5. Discontinuing operation: Nil
6. B r a n c h i n f o r m a t i o n
In 10 thousand Yuan
Refrigerator
, Air-
Small
Item freezer conditione Other Salesinbranch Total
appliances
Washing r
machine
Operation income 485,502.05 706,203.96 97,191.27 18,634.85 24,662.70 1,282,869.43
Including: foreign trade
481,385.54 706,203.41 87,727.82 7,552.66 1,282,869.43
income
Income from transactions
4,116.51 0.55 9,463.45 11,082.19 24,662.70
between divisions
Operation expenses 472,638.13 688,555.60 95,515.00 17,199.96 24,555.30 1,249,353.39
Operation profit 12,863.92 17,648.36 1,676.27 1,434.89 107.40 33,516.04
Totalassets 1,216,007.82 820,200.11 80,564.22 21,932.82 174,966.00 1,963,738.97
Totalliability 693,373.55 672,228.72 56,333.69 7,373.64 31,680.50 1,397,629.10
242
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
Refrigerator
, Air-
Small
Item freezer conditione Other Salesinbranch Total
appliances
Washing r
machine
Supplementary information
Depreciation and amortization expenses 10,874.02 7,276.86 184.46 346.25 -9.00 18,690.59
Capital expenditure 9,479.95 4,785.01 6.34 636.77 0.80 14,907.27
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
XVII. Notes to main items of financia l statement of paren t compa ny
1.Account receivable
(1) P resented acco rding to the b ad deb t 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 by 1,105,249,342.00 73.27 41,861,124.25 3.79 1,063,388,217.75
single item
Including: Related party payments 1,068,696,399.28 70.85 40,230,576.04 3.76 1,028,465,823.24
Account receivable with letter of
29,214,537.43 1.94 29,214,537.43
credit
Account receivable with single
minor amount but withdrawal single 7,338,405.29 0.48 1,630,548.21 22.22 5,707,857.08
item bad debt provision
Account receivable withdrawal
403,217,048.46 26.73 24,703,168.82 6.13 378,513,879.64
bad debt provision by portfolio
Including: account receivable of
engineering customers
Receivables other than engineering
403,217,048.46 26.73 24,703,168.82 6.13 378,513,879.64
customers
Total 1,508,466,390.4600 100.00 66,564,293.07 4.41 1,441,902,097.39
(Continued)
Amount at year-begin
Category Book balance Bad debt provision
Book value
Amount Ratio(%) Amount Ratio(%)
Account receivable that withdrawal
966,219,951.36 80.19 41,766,187.59 4.32 924,453,763.77
bad debt provision by single item
Including: Related party payments 930,280,151.88 77.21 40,223,800.95 4.32 890,056,350.93
243
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
Amount at year-begin
Category Book balance Bad debt provision
Book value
Amount Ratio(%) Amount Ratio(%)
Account receivable with letter of
28,689,555.75 2.38 28,689,555.75
credit
Account receivable with single
minor amount but withdrawal 7,250,243.73 0.60 1,542,386.64 21.27 5,707,857.09
single item bad debt provision
Account receivable withdrawal
238,724,048.45 19.81 17,616,043.17 7.38 221,108,005.28
bad debt provision by portfolio
Including: account receivable of
engineering customers
Receivables other than engineering
238,724,048.45 19.81 17,616,043.17 7.38 221,108,005.28
customers
Total 1,204,943,999.81 100.00 59,382,230.76 4.93 1,145,561,769.05
1) Provision for bad debts of account receivable on an individual basis
Account receivable with single minor amount but withdrawal bad debt provision singly, refers to
the minor single receivables, and withdrawal bad debt provision by combination shows no risk
characteristic of the receivables, Involving 5 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) 353,638,356.01 3,536,383.56 1.00
Over 3 months and within 6 months (6 months
12,404,287.97 1,240,428.80 10.00
included)
Over 6 months and within one year (One year
12,520,976.40 2,504,195.28 20.00
included)
over one year-within two years (2 years
10,233,287.30 5,116,643.65 50.00
included)
Over 2 years - within 3 years (3 years included) 10,573,116.23 8,458,492.98 80.00
Over 3 years 3,847,024.55 3,847,024.55 100.00
Total 403,217,048.46 24,703,168.82
(Continued)
Amount at year-begin
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 months
9,319,360.50 931,936.05 10.00
included)
Over 6 months and within one year (One year
5,821,154.56 1,164,230.91 20.00
included)
244
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
Amount at year-begin
Account age
Book balance Bad debt Accrual ratio (%)
over one year-within two years (2 years
13,330,951.73 6,665,475.87 50.00
included)
Over 2 years - within 3 years (3 years included) 8,209,879.17 6,567,903.34 80.00
Over 3 years 268,757.55 268,757.55 100.00
Total 238,724,048.45 17,616,043.17
(2)ounts receivable are listed according to age
Account age Ending balance Opening balance
Within 3 months(3 months included) 1,400,023,662.94 1,100,472,354.68
Over 3 months and within 6 months (6 months
24,413,925.00 30,307,002.60
included)
Over 6 months and within one year (One year
15,376,529.56 18,031,084.91
included)
over one year-within two years (2 years
27,902,191.83 31,469,257.52
included)
Over 2 years - within 3 years (3 years included) 22,018,705.75 8,570,995.44
Over 3 years 18,731,375.38 16,093,304.66
Total 1,508,466,390.46 1,204,943,999.81
(3) Bad debt reserves of the account receivable
Amount change in the period
Category Opening balance Collected or Resale or write- Ending balance
Accrual
switch back off
Bad debt
59,382,230.76 8,206,278.76 1,024,216.45 66,564,293.07
provision
Total 59,382,230.76 8,206,278.76 1,024,216.45 66,564,293.07
(4) Top 5 balance of account receivable aggregated by the debtor at end of the period amounted to
1,090,440,502.07 yuan, accounted for 72.29% of the receivables at balance of current period-end,
the bad debt provision amounted as 42,918,045.45 yuan.
(5) Receivables derecognized due to the transfer of financial assets: 226,278,804.14 yuan
(6) There are no receivables and the amount of assets and liabilities formed by continued
involvement
2. Other account receivable
245
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
Item Ending balance Opening balance
Other account receivable 63,707,764.31 29,903,408.82
Total 63,707,764.31 29,903,408.82
(1) By nature
Nature Ending book balance Opening book balance
Export tax refund 42,265,562.52 12,703,975.11
Cash deposit 3,178,111.92 2,528,111.92
Loans of employee’s pretty cash 9,473,382.65 7,342,858.38
Related party in consolidation statement 8,477,042.98 5,162,387.15
Related party not in consolidation
200,000.00 42,202.32
statement
Other 163,664.24 2,173,873.94
Total 63,757,764.31 29,953,408.82
(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. 2023 50,000.00 50,000.00
Book balance of other account
receivable in Current Period as — — — —
at 1 Jan. 2023
--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
Write off in Current Period
Other change
Balance as at 30 Jun. 2023 50,000.00 50,000.00
(3) By account age
Account age Ending balance Opening balance
Within 3 months (3 months included) 52,052,552.91 24,770,884.16
246
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
Account age Ending balance Opening balance
Over 3 months and within 6 months (6 months
4,134,632.73 261,521.34
included)
Over 6 months and within one year (One year
2,741,889.54 536,189.02
included)
over one year-within two years (2 years
1,344,211.92 1,445,151.00
included)
Over 2 years - within 3 years (3 years
1,274,685.31 1,360,620.00
included)
Over 3 years 2,209,791.90 1,579,043.30
Total 63,757,764.31 29,953,408.82
(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 42,265,562.52 Within 3 months 66.29
Related party
Unit II 4,881,959.03 Within 1 year 7.66
payment
Related party
Unit III 2,832,349.94 Within 1 year 4.44
payment
Within 3 months,3-6
Unit IV Petty cash 1,433,682.65 2.25
months, 2-3 years
Unit V Petty cash 1,195,854.22 Within 3 months 1.88
Total 52,609,408.36 82.52
(5) There are no receivables involving government subsidies
(6) There are no other receivables derecognized due to the transfer of financial assets.
(7) There are no other receivables and the amount of assets and liabilities formed by continued
involvement
3. Long-term equity investments
(1) Classification of long-term equity investments
Ending balance Opening balance
Item Impai Impai
Book balance rment Book value Book balance rmen Book value
loss t loss
Investment in
subsidiaries:
Zhongke Meiling
42,652,000.00 42,652,000.00 42,652,000.00 42,652,000.00
Cryogenic
247
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
Ending balance Opening balance
Item Impai Impai
Book balance rment Book value Book balance rmen Book value
loss t loss
Technology Co.,
Ltd
Mianyang Meiling
Refrigeration Co., 95,000,000.00 95,000,000.00 95,000,000.00 95,000,000.00
Ltd.
Hefei Meiling
Electric Appliances 54,900,000.00 54,900,000.00 54,900,000.00 54,900,000.00
Marketing Co., Ltd
Zhongshan
Changhong Electric 304,856,419.37 304,856,419.37 304,856,419.37 304,856,419.37
Co., Ltd
Sichuan Changhong
Air-conditioner Co., 955,600,437.79 955,600,437.79 955,600,437.79 955,600,437.79
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 Technology 91,082,111.12 91,082,111.12 91,082,111.12 91,082,111.12
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.Internationa 6,889,100.00 6,889,100.00 6,889,100.00 6,889,100.00
l (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 14,092,147.64 14,092,147.64 19,899,176.44 19,899,176.44
Co., Ltd.
Sichuan Zhiyijia
Network
61,774,515.29 61,774,515.29 51,850,179.61 51,850,179.61
Technology Co.,
Ltd.
Total 1,860,476,731.21 1,860,476,731.21 1,856,359,424.33 1,856,359,424.33
248
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
(2) Investment in subsidiaries
Provisionfor
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 Meiling Wulian Technology Co., Ltd 6,000,000.00 6,000,000.00
CH-Meiling.International (Philippines) Inc. 6,889,100.00 6,889,100.00
Hefei Changhong Meiling Life Appliances Co.,
35,000,000.00 35,000,000.00
Ltd.
Total 1,784,610,068.28 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 recognizedunder comprehensi change announcedto
t ment r
equity ve income issued
loss
249
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
Hefei Xingmei Assets Management
19,899,176.44 -13,428.80 5,793,600.00 14,092,147.64
Co., Ltd.
Sichuan Zhiyijia Network
51,850,179.61 11,553,358.32 1,629,022.64 61,774,515.29
Technology Co., Ltd.
Total 71,749,356.05 11,539,929.52 7,422,622.64 75,866,662.93
250
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
4. Operation income, operation cost
(1) Operation income and operation cost
Current Period Last Period
Item
Income Cost Income Cost
Main business 4,122,655,653.51 3,763,651,668.97 3,030,603,503.85 2,834,190,544.57
Other business 216,043,888.41 191,302,905.28 245,902,657.62 226,413,800.95
Total 4,338,699,541.92 3,954,954,574.25 3,276,506,161.47 3,060,604,345.52
(2) Main business - Classified according to product
Current Period Last Period
Product
Operation income Operation cost Operation income Operation cost
Refrigerator,
freezer
3,480,438,269.96 3,192,961,299.81 2,609,364,481.40 2,442,998,402.01
air conditioner 5,672,858.41 5,668,106.85 4,106,663.74 3,945,682.66
Washing machine 527,176,164.12 463,485,427.18 302,517,846.03 283,311,449.87
Small household
appliances and
kitchen and
109,368,361.02 101,536,835.13 114,614,512.68 103,935,010.03
bathroom
Total 4,122,655,653.51 3,763,651,668.97 3,030,603,503.85 2,834,190,544.57
(3) Main business - Classified according to region
Current Period Last Period
Region
Operation income Operation cost Operation income Operation cost
Domestic 2,304,813,166.36 2,201,311,740.92 2,085,203,000.95 1,955,621,293.70
Overseas 1,817,842,487.15 1,562,339,928.05 945,400,502.90 878,569,250.87
Total 4,122,655,653.51 3,763,651,668.97 3,030,603,503.85 2,834,190,544.57
Top five clients in sales revenue amounted as 2,263,976,745.57 yuan, a 52.18% in total operation
income.
5. Investment income
Item Current Period Last Period
Long-term equity investment income by Cost method 50,826,032.53 36,720,000.00
Long-term equity investment income by equity method 11,539,929.52 5,509,596.07
Investment income obtained from disposal of trading
-8,577,708.50 1,530,699.78
financial assets
Investment income of other non-current financial assets
11,409,029.33 76,200.80
during holding period
The termination of income recognition for financial
-4,223,097.22 -1,663,033.71
assets measured by amortized cost
251
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
Item Current Period Last Period
Interest income from debt investment during the holding
7,402,220.09 5,356,708.33
period
Total 68,376,405.75 47,530,171.27
XVIII. Approval of financia l statement
The financial statement has already been approved from the board of directors of the Company for
reporting dated August 16,2023.
252
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2023 to 30 June 2023
(Unless other wise specified, RMB for record in the Statement)
XIX. Supplementary information for financial statement
1. Non-recurring gains and losses for this year
Item Current Year Note
Gains and losses from disposal of non-current assets
Governmental subsidy reckoned into current gains/losses (not
including the subsidy enjoyed in quota or ration according to national 28,162,261.54
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
-59,214,422.03
financial liability and financial assets available-for-sale, excluded
effective hedging business relevant with normal operations of the
Company
Reversal of the account receivable depreciation reserves subject to
3,588,165.07
separate impairment test
Other non-operating income and expenses other than the above 7,689,220.58
Subtotal -19,774,774.84
Less: impact on income tax -854,743.24
Impact on minority shareholders’ equity (post-tax) 5,014,967.48
Total -23,934,999.08 —
2. Return on equity and earnings per share
Weighted average return on Earnings per share/EPS
Profit during the report period (RMB/Share)
equity
Basic EPS Diluted EPS
Net profit attributable to ordinary
shareholders of the parent company
6.69% 0.3477 0.3477
Net profit attributable to ordinary
shareholders of the parent company
7.14% 0.3709 0.3709
after deduction of the non-recurring
gains/losses
Wu Dinggang
Changhong Meiling Co., Ltd.
August 18,2023
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