CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2023
Stock Code: 000521, 200521 Stock Abbreviation: Changhong Meiling, Hongmeiling B
Announcement No.: 2023-059
Changhong Meiling Co., Ltd.
The Third Quarterly Report of 2023
The Company and whole members of the Board guarantee that the information disclosed is true, accurate and
complete and there are no fictitious records, misleading statements or material omissions carried in the Report.
Important Note:
1. Board of Directors and the Supervisory Committee of Changhong Meiling Co., Ltd. (hereinafter referred to as
the Company) and its directors, supervisors and senior executives should guarantee the reality, accuracy and
completion of the quarterly report, there are no any fictitious statements, misleading statements or important
omissions carried in this report, and shall take legal responsibilities, individual and/or joint.
2.Mr. Wu Dinggang, Person in charge of the Company, Mr. Pang Haitao, head of accounting and Mr. Yang
Jun ,person in charger of accounting organ (accounting officer) hereby confirm that the financial information of
this Quarterly Report is authentic, accurate and complete.
3. The Third quarterly report audited or not
□Yes √No
I. Main financial data
(i) Main accounting data and financial indexes
Whether it has retroactive adjustment or re-statement on previous accounting data or not
□ Yes√ No
Increase/decrease from
Increase/decrease in the
year-begin to
period compared with Year-begin to
Current period period-end compared
the same period of the period-end
with the same period of
previous year
the previous year
Operating income
6,338,921,510.27 23.07% 19,167,615,833.84 24.66%
(RM B)
Net profit attributable
to shareholders of the 140,719,309.64 38.20% 498,774,154.38 207.51%
listed company (RM B)
1
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2023
Net profit attributable
to shareholders of the
listed company after
131,279,099.55 76.74% 513,268,943.37 554.80%
deducting
non-recurring gains
and losses (RM B)
Net cash flow arising
from operating — — 2,406,267,035.85 30.83%
activities (RM B)
Basic earnings per
0.1366 38.12% 0.4843 209.06%
share (RM B/Share)
Diluted earnings per
0.1366 38.12% 0.4843 209.06%
share (RM B/Share)
Increase by 0.61 Increase by 5.95
Weighted average ROE 2.69% 9.26%
percentage points percentage points
Changes of this period-end over same period-end
End of this period End of last period
of last year
Total assets (RM B) 19,316,478,659.62 16,200,361,212.80 19.23%
Owners’ equity
attributable to
5,586,633,843.97 5,168,286,872.09 8.09%
shareholders of listed
company (RM B)
(ii)Items of non-recurring gains and losses
√ Applicable □ Not applicable
In RMB
Year-begin to
Item Current amount Note
period-end
Gains/losses from the disposal of non-current asset See "Proceeds from Asset
(including the write-off that accrued for impairment 1,379,107.45 1,379,107.45
Disposal"
of assets)
Governmental subsidy calculated into current gains
and losses(while closely related with the normal
See "Other Earnings" for
business of the Company, the government subsidy
24,077,197.41 52,239,458.95 details.
that accord with the provision of national policies
and are continuously enjoyed in line with a certain
standard quota or quantity are excluded)
Gain and loss from change of the fair value arising
from transactional monetary assets, transactional
financial liabilities as held as well as the investment See "Fair value Change
income arising from disposal of the transactional income" and "Investment
-16,349,602.74 -75,564,024.77
monetary assets, transactional financial liabilities Income" for details.
and financial assets available for sale excluding the
effective hedging transaction in connection with the
Company’s normal business
Reversal of the account receivable depreciation See "Accounts
866,709.84 4,454,874.91
reserves subject to separate impairment test Receivable" for details.
2
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2023
See "Non-operating
Other non-operating income and expenses other Income" and
1,836,340.33 9,525,560.91
than the above "Non-operating
Expenses" for details.
Less: impact on income tax 252,305.52 -602,437.72
Impact on minority shareholders’ equity (post-tax) 2,117,236.68 7,132,204.16
Total 9,440,210.09 -14,494,788.99 --
Details of other profit and loss items that meet the non-recurring profit and loss definition
□ 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
(iii)Particulars about material changes in items of main accounting statement financial index and
explanations of reasons
√ Applicable □Not applicable
1.Changes and reasons of items in balance sheet
In RMB
Changes
Item Ending balance Opening balance Reasons of changes
ratio
M ainly due to the purchase of wealth management
Trading financial assets 422,556,947.00 57,660,588.67 632.83%
products by the Company in the current period.
M ainly due to the Company's newly increased
Notes receivable 38,674.50 - -
commercial acceptance bills in the current period
M ainly due to the growth of operation revenue in the
Account receivable 1,707,094,454.29 1,306,871,945.85 30.62%
current period
M ainly due to the company's new project quality
Contract assets 29,701,096.48 3,530,922.13 741.17%
guarantee fund in the current period
Non-current asset due M ainly due to the increase in debt investment due
292,244,708.33 170,167,638.89 71.74%
within one year within one year of the current period
M ainly due to the increase in time deposits in the
Other current assets 262,155,370.10 120,589,431.85 117.39%
current period
3
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2023
Creditor's rights M ainly due to the increase in the Company's large
235,314,579.15 121,543,750.00 93.60%
investment certificates of deposit in the current period
M ainly due to the increase in the Company's asset
Long-term amortization 22,192,272.11 14,900,600.59 48.94%
overhaul in the current period
Other non-current M ainly due to the increase in the Company's prepaid
2,648,540.47 893,238.57 196.51%
assets project payment in the current period
M ainly due to the increase in bank borrowings in the
Short-term loan 1,069,166,879.76 674,143,916.67 58.60%
current period
M ainly due to the non cancelable orders and change
Trading financial
80,786,616.67 41,961,524.78 92.53% of the valuation from forward foreign exchange
liabilities
contracts
M ainly due to the increase in VAT payable by the
Taxes payable 105,393,081.13 80,287,878.62 31.27%
Company in the current period
Non-current liabilities M ainly due to the increase in long-term borrowings
40,071,769.96 30,287,099.08 32.31%
due within one year due within one year of the current period
M ainly due to the Company's provision of safety
Special reserve 13,238,702.97 2,467,205.78 436.59%
production expenses in the current period.
2.Changes and reasons of items in profit statement
In RMB
Item Current period Amount at the same Changes
Reasons of changes
period of last year ratio
M ainly due to the YOY increases in interest
Financial expenses -107,571,987.60 -79,277,613.98 -35.69%
expenses
M ainly due to the non cancelable orders and
Income from fair value
-63,928,733.56 6,783,043.30 -1042.48% change of the fair value of forward foreign
changes
exchange contract changes
M ainly due to the Company's forward foreign
exchange contract delivery loss in the current
Investment earnings 6,121,002.68 19,970,558.55 -69.35%
period and the profit in the same period of the
previous year
M ainly due to the YOY increase in impairment
Credit impairment loss -93,458,661.22 -61,885,204.97 51.02%
loss from account receivable
M ainly due to the YOY decrease in the
Loss of asset impairment -19,904,174.33 -35,044,901.69 -43.20% provision for the Company's inventory price
decline in the current period
M ainly due to the YOY decrease in the
Gains on disposal of
1,379,107.45 9,653,201.02 -85.71% Company's asset disposal income in the
assets
current period
4
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2023
M ainly due to the YOY increase in revenue
Non-operating income 13,003,292.01 7,725,531.66 68.32% such as liquidated damages received by the
Company in the current period
M ainly due to the increase in income tax
Income tax expenses 4,446,696.74 -9,091,804.45 148.91% expense due to the increase in the Company's
taxable income in the current period
3.Changes and reasons of items in cash flow statement
In RMB
Item Current period Amount at the same
Changes ratio Reasons of changes
period of last year
Other cash received M ainly due to the YOY decrease in
concerning operation 73,343,301.56 172,312,892.42 -57.44% government subsidies received by the
activities Company in the current period.
M ainly due to the YOY increase in the
Cash received from
630,000,000.00 323,322,268.35 94.85% Company's withdrawal of wealth
recovery of investment
management products in the current period
Net cash received from
M ainly due to the YOY decrease in cash
disposal of fixed assets,
4,027,612.46 16,653,271.93 -75.81% received by the Company for the disposal of
intangible assets and other
assets in the current period.
long-term assets
M ainly due to the receipt of raised funds by
Cash received from its subsidiary Zhongke M eiling in the same
- 368,459,272.52 -100.00%
absorbing investment period of the previous year, and there was no
such receipt in this period.
M ainly due to the YOY
Cash received from
1,135,721,085.04 868,040,918.37 30.84% increase in bank borrowings obtained by the
borrowing
company in this period
Other cash received M ainly due to the limited recovery of the
concerning financing 250,002,913.48 11,404,482.95 2092.15% Company's guarantee deposits in the current
activities period
Other cash paid M ainly due to the YOY decrease in the
concerning financing 107,503,081.30 869,994,470.14 -87.64% Company's guarantee deposits restriction in
activities the current period
Influence on cash and cash
equivalents due to M ainly due to the change of exchange rate in
1,594,491.69 47,997,201.13 -96.68%
fluctuation in exchange the current period
rate
5
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2023
II. Shareholders
(i) Total number of common shareholders and preference shareholders with voting rights recovered and
top ten shareholders
In Shares
Total preference shareholders
Total number of common
with voting rights recovered at
shareholders at the end of report 50,291 0
end of reporting period (if
period
applicable)
Top ten shareholders
Information of shares
Proportion Amount of pledged, tagged or
Nature of Amount of
Shareholder’s name of shares lock-up frozen
shareholder shares held
held shares held State of
Amount
share
State-owned legal
Sichuan Changhong Electric Co., Ltd. 24.12% 248,457,724 0 - --
person
Hefei Industry Investment Holding (Group) Co., State-owned legal
4.64% 47,823,401 0 - -
Ltd. person
CHANGHONG (HK) TRADING LIM ITED Foreign legal person 2.63% 27,077,797 0 - -
Foreign natural
CAO SHENGCHUN 1.43% 14,766,086 0 - -
person
Domestic
Bank of China－Investment quantitative selection
non-state-owned 0.96% 9,847,692 0 - -
of stock initiated securities investment fund
legal person
China construction Bank－Bank of Domestic
Communications Schroeder consumer new drive non-state-owned 0.85% 8,715,868 0 - -
equity securities investment fund legal person
Agricultural bank of China－Bank of
Domestic
Communications Schroder domestic demand
non-state-owned 0.76% 7,843,800 0 - -
growth of a year holding period of hybrid
legal person
securities investment fund
Domestic
Bank of China－Jiashi theme selected hybrid
non-state-owned 0.68% 7,046,809 0 - -
securities investment fund
legal person
Phillip Securities( HK) Co., Ltd. Foreign legal person 0.61% 6,296,913 0 - -
Domestic natural
Wu Lili 0.57% 5,875,000 0 - -
person
Top ten shareholders with unrestricted shares held
Type of shares
Shareholder’s name Amount of unrestricted shares held
Type Amount
6
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2023
RM B ordinary
Sichuan Changhong Electric Co., Ltd. 248,457,724 248,457,724
shares
Hefei Industry Investment Holding (Group) Co., RM B ordinary
47,823,401 47,823,401
Ltd. shares
Domestically listed
CHANGHONG (HK) TRADING LIM ITED 27,077,797 27,077,797
foreign shares
Domestically listed
CAOSHENGCHUN 14,766,086 14,766,086
foreign shares
Bank of China－Investment quantitative selection RM B ordinary
9,847,692 9,847,692
of stock initiated securities investment fund shares
China construction Bank－Bank of
RM B ordinary
Communications Schroeder consumer new drive 8,715,868 8,715,868
shares
equity securities investment fund
Agricultural bank of China－Bank of
Communications Schroder domestic demand RM B ordinary
7,843,800 7,843,800
growth of a year holding period of hybrid shares
securities investment fund
Bank of China－Jiashi theme selected hybrid RM B ordinary
7,046,809 7,046,809
securities investment fund shares
Domestically listed
Phillip Securities( HK) Co., Ltd. 6,296,913 6,296,913
foreign shares
RM B ordinary
Wu Lili 5,875,000 5,875,000
shares
Among the above shareholders, CHANGHONG (HK) TRADING LIM ITED (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 of the B shares of the Company, 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
Explanation on associated
existed no associated relationship or belong to the concerted actors as specified in the M easures for the
relationship among the
Administration of Information Disclosure of Shareholder Equity Changes of Listed Companies among Sichuan
aforesaid shareholders
Changhong Electric Co., Ltd, Hong Kong Changhong and other top 7 shareholders, 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 M easures on Information Disclosure of
Changes in Shareholding of Listed Companies”.
Explanation on top ten
As of September 30,2023, among the top 10 common shareholders, Wu Lili Holds 5,500,000 shares of the
shareholders involving
Company through Customer credit trading secured account of Guotai Junan Securities Co., Ltd., and 375,000
margin business (if
shares hold through common securities account, thus 5,875,000 shares of the Company are held in total.
applicable)
7
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2023
(ii) Total shareholders with preferred stock held and shares held by top ten shareholders with preferred
stock held
□ Applicable √ Not applicable
III. Other important matters
√Applicable □Not applicable
Information index for temporary report
Overview Date for disclosure
disclosure
After the resolution adopted by the board of directors , the board of
supervisors and shareholders General M eeting of the Company
Juchao website
, it’s agreed that the Company will with its own funds of 45 million yuan
January 18, 2023,April http://www.cninfo.com.cn
participate in the establishment of "Sichuan Hongyun Information
26,2023 （No.:2023-002,2023-003,2023-004,20
Technology Venture Capital Fund Partnership (Limited Partnership)"
23-030）
(tentative name, subject to the approval and registration of the market
regulatory department), and serve as a limited partner of the fund.
After the resolution adopted by the board of directors , the board of
supervisors and shareholders General M eeting of the Company, it’s agreed
that the Company and its subsidiaries will make a single provision for bad
debts for receivables of the customer Changhong RUBA Electric Appliance
Co., Ltd(an associate of Zhongshan Changhong Electric Appliance Co., Ltd-a
Juchao website
subsidiary to the Company) in the fourth quarter of 2022, and agreed that the
January 18, 2023,April http://www.cninfo.com.cn
Company, its subsidiaries Hefei M eiling Group Holdings Co., Ltd. and
26,2023 （No.:2023-002,2023-003,2023-005,20
Sichuan Changhong Air Conditioning Co., Ltd and Sichuan Zhiyijia Network
23-030）
Technology Co., Ltd-an associate of the Company, made a single provision
for bad debts for the receivables of Gome System (Gome System is the
collective name of Gome's subsidiaries, branches, offices and agencies at all
levels), with the total amount for the aforementioned single provisions for
bad debts of 101,962,546.44 yuan.
After the resolution adopted by the board of directors , the board of
supervisors and shareholders General M eeting of the Company, The Profit
Distribution Plan of 2022 was deliberated and approved, meanwhile,
independent director of the Company expressed their independent approval
of the Plan. By focusing on the investor’s interest and long-term development
needs, Based on the total share capital of the Company of 1,029,923,715
Juchao website
shares on December 31, 2022,distributed 0.9 yuan (tax included) in cash for
M arch 31,2023, April 26, http://www.cninfo.com.cn
every 10 shares to whole shareholders, no bonus shares and no share capital
2023, June 10,2023 （No.:2023-011,2023-012,2023-014,20
increased from public reserves. After distribution, total share capital of the
23-030,2023-037）
Company remains unchanged. The remaining accumulated retain profit of the
parent company amounted to 971,443,732.63 yuan, and the remaining
retained profit will carry forward for distribution in later years. On June
10,2023,the Company disclosed the "2022 Annual Profit Distribution Plan
Implementation Announcement" and imp lemented the aforementioned profit
distribution plan.
8
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2023
After the resolution adopted by the board of directors , the board of
Juchao website
supervisors and shareholders General M eeting of the Company, it’s agreed to M arch 31,2023, April 26,
http://www.cninfo.com.cn
renew the appointment of ShineWing CPA (LLP) as the auditor of the 2023
（No.:2023-011,2023-015,2023-030）
Company's 2023 annual financial report and internal control for one year.
After the resolution adopted by the board of directors and shareholders
General M eeting of the Company, it’s agreed that the Company and its
subsidiaries will carry out forward foreign exchange fund trading business Juchao website
M arch 31,2023, April 26,
from July 1, 2023 to June 30, 2024, with a transaction balance of not more http://www.cninfo.com.cn
2023
than USD 1.046 billion (mainly including: USD, AUD, EURO, and all other （No.:2023-011,2023-016,2023-030）
foreign currencies converted into USD), and the delivery period of a single
business shall not exceed 1 year.
After the resolution of the board of directors and the resolution of the board
of supervisors of the Company, in accordance with the principles of legal
Juchao website
compliance, standardized operation, one-by-one examination and approval,
M arch 31,2023 http://www.cninfo.com.cn
and account write-off records, Zhongshan Changhong Electric Appliance
（No.:2023-011,2023-012,2023-017）
Co., Ltd., a subsidiary of the company, was agreed to write off a total of
1,307,424.41 yuan of bad debts that had been truly unrecoverable.
After the resolution adopted by the board of directors of the Company, it’s
approved that the Company and its subsidiaries will apply for a special credit
line of up to 400 million yuan for the bill pool from Hefei Branch of Juchao website
M arch 31,2023, April 26,
Industrial Bank Co., Ltd; will apply for a special credit line of up to 300 http://www.cninfo.com.cn
2023
million yuan for the bill pool from Hefei Branch of Ping An Bank Co., Ltd; （No.:2023-011,2023-018,2023-030）
and will apply for a special credit line of up to 400 million yuan for the bill
pool from Hefei Branch of Jiujiang Bank Co., Ltd.
From April 17, 2023 to April 19, 2023, the Company's stock closing price
rise for three consecutive trading days had accumulated more than 20%
deviation from the stock index. According to the relevant regulations of the Juchao website
Shenzhen Stock Exchange, the Company issued the "Announcement of http://www.cninfo.com.cn
April 20,2023
Abnormal Fluctuation in Stock Trading". According to the Company's （No.:2023-029）
self-examination, the Company, the controlling shareholder and the actual
controller did not have any material matters about the Company that should
be disclosed but have not been disclosed or were in the planning stage.
After the resolution of the Company's board of directors and the resolution of
shareholders' general meeting, according to the Company's operation and Juchao website
April 20,2023, M ay
management needs, and combined with the actual situation of the Company, http://www.cninfo.com.cn
11,2023
it’s agreed to amend some articles of the Articles of Association of the （No.:2023-023,2023-027,2023-033）
Company.
On April 27, 2023, the Company received a notice from M r. Tang Youdao,
Vice President of the Company, that based on his firm confidence in the
Juchao website
Company's future development prospect and recognition of the Company's
April 29,2023 http://www.cninfo.com.cn
long-term investment value, M r. Tang Youdao increased his holdings by
（No.:2023-032）
800,000 RM B ordinary shares (A shares) of the Company by way of
centralized bidding through the trading system of the Shenzhen Stock
9
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2023
Exchange.
In order to establish a variety of shareholder return mechanisms, thank
shareholders for their long-term care and support for the Company, and
Juchao website
meanwhile let shareholders experience the Company's new products and
M ay 18,2023 http://www.cninfo.com.cn
services, and improve investors' understanding and recognition of the
（No.:2023-034）
Company's intrinsic value, the Company held the "M eiling 40th Anniversary
Shareholder Gratitude Giving Festival" from M ay 20, 2023 to M ay 28, 2023.
M r. Liu Hongwei, former executive vice president of the Company, applied
Juchao website
to resign from his position as the executive vice president of the Company
M ay 25,2023 http://www.cninfo.com.cn
due to personal reasons; After resigning from Executive Vice President, M r.
（No.:2023-036）
Liu Hongwei still works for the Company.
After the resolution of the board of directors of the Company, it’s agreed to
adjust the equity structure of Sichuan Hongmei Intelligent Technology Co.,
Ltd. (hereinafter referred to as "Hongmei Company"), that was, the total
100% equity held by the original shareholders Sichuan Changhong Air
Conditioning Co., Ltd. (a wholly-owned subsidiary of the Company, which Juchao website
holds 99% of the equity of Hongmei Company) and M ianyang M eiling August 18,2023 http://www.cninfo.com.cn
Refrigeration Co., Ltd. (a wholly -owned subsidiary of the Company, which （No.:2023-040）
holds 1% of the equity of Hongmei Company) was transferred to the
Company-which thus directly holds it, with the equity transfer price was
based on the audited net asset value of 22,725,052.60 yuan of Hongmei
Companyas of December 31, 2022.
After the resolution of the board of directors of the Company, it’s agreed to Juchao website
cancel Hefei M eiling Electric M arketing Co., Ltd., a wholly -owned August 18,2023 http://www.cninfo.com.cn
subsidiary of the Company. （No.:2023-040）
After the resolution of the board of directors of the Company, it’s agreed that
its subsidiary, Zhongshan Changhong Electric Appliance Co., Ltd., will Juchao website
invest 36.526 million yuan by its own funds to carry out technical August 18,2023 http://www.cninfo.com.cn
transformation of its production line to improve its manufacturing capacity, （No.:2023-040）
reduce costs and improve efficiency, and enhance product competitiveness.
Approved by the resolution of the board of directors of the Company, in
accordance with the Company's development strategy and the business
development needs of Hongyuan Geoenergy Heat Pump Technology
(Zhongshan) Co., Ltd. (hereinafter referred to as "Heat Pump Zhongshan")-a
subsidiary to the Company’s subsidiary -Sichuan Changhong Air
Juchao website
Conditioning Co., Ltd., in order to solve the problem of insufficient
August 18,2023 http://www.cninfo.com.cn
production capacity of the Heat Pump Zhongshan production and
（No.:2023-040）
manufacturing base, further improve its production and manufacturing
capacity, and enhance the competitiveness and profitability of its products,
it’s agreed that Heat Pump Zhongshan will implement the relocation and
expansion project with its own funds of 34.62 million yuan to ensure its
future business development.
10
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2023
After the resolution of the Company's directors and he resolution of
shareholders' general meeting of the Company, it’s agreed to provide an
Juchao website
additional credit guarantee line of not more than RM B 80 million for M eiling
August 18,2023 http://www.cninfo.com.cn
life Appliances, with a guarantee period of one year, for its daily production
（No.:2023-043）
and operation.
Sichuan Hongyun New Generation Information Technology Venture Capital
Fund Partnership (Limited Partnership), jointly funded by the Company and
its controlling shareholder Sichuan Changhong Electric Co., Ltd. (hereinafter
referred to as "Sichuan Changhong"), and the controlling shareholder’s
subsidiary Sichuan Changhong Jiahua Digital Technology Co., Ltd.
Juchao website
(hereinafter referred to as "Jiahua Digital") and other investment institutions,
September 8,2023 http://www.cninfo.com.cn
was established in October 2015 with a duration of 8 years and will expire in
（No.:2023-044,2023-045,2023-046）
October 2023. After the resolution of the board of directors and the resolution
of the board of supervisors of the Comp any, it’s agreed to extend the
existence of the fund for 1 year (the specific expiry date shall be subject to
the industrial and commercial registration), that is, the cumulative duration of
the fund after this extension is 9 years.
After the resolution of the board of directors and the board of supervisors of
the Company, it’s agreed that the Company will increase the estimated
amount of not to exceed 25 million yuan (excluding tax) of routine related
party transactions such as the purchase of commodities and raw materials
Juchao website
between the Company and its subsidiaries and Sichuan Changhong
September 8,2023 http://www.cninfo.com.cn
Electronics Holding Group Co., Ltd. and its subsidiaries in 2023 ; and will
（No.:2023-044,2023-045,2023-047）
increase the estimated amount of not to exceed 10 million yuan (excluding
tax) of routine related party transactions such as the purchase of goods
between the Company and its subsidiaries and Sichuan Changhong
Electronic Parts Co., Ltd. in 2023.
After the resolution of the board of directors of the Company, in order to
further improve the production and manufacturing capacity of Sichuan
Changhong Air Conditioning Co., Ltd. (hereinafter referred to as
"Changhong Air Conditioning") and meet its business development needs,
it’s agreed to Changhong Air Conditioning to implement the capacity
Juchao website
improvement and transformation project with its own funds of 32,206,700
September 8,2023 http://www.cninfo.com.cn
yuan; M eanwhile, in order to further improve the production and
（No.:2023-044）
manufacturing system capacity of Changhong Air Conditioning and meet its
needs for improvement in production efficiency, product quality, on-site
image, and prevent potential safety hazards, it’s agreed to Changhong Air
Conditioning to carry out technical transformation with its own funds of
17,135,700 yuan.
11
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2023
IV. Quarterly financial statements
(i) Financial statement
1. Consolidate Balance Sheet
Prepared by Changhong Meiling Co., Ltd.
In RMB
Item September 30,2023 January 1, 2023
Current assets:
M onetary fund 8,646,007,671.31 6,839,421,779.13
Settlement provisions
Capital lent
Trading financial assets 422,556,947.00 57,660,588.67
Derivative financial assets
Note receivable 38,674.50
Account receivable 1,707,094,454.29 1,306,871,945.85
Receivable financing 1,527,554,388.08 1,446,358,719.88
Account paid in advance 34,714,711.68 45,859,491.55
Insurance receivable
Reinsurance receivables
Contract reserve of reinsurance receivable
Other account receivable 65,938,030.81 88,354,803.24
Including: Interest receivable
Dividend receivable
Buying back the sale of financial assets
Inventory 1,800,812,409.17 1,710,306,933.71
Contract assets 29,701,096.48 3,530,922.13
Assets held for sale
Non-current asset due within one year 292,244,708.33 170,167,638.89
Other current assets 262,155,370.10 120,589,431.85
Total current assets 14,788,818,461.75 11,789,122,254.90
Non-current assets:
Loans and payments on behalf
Creditor's rights investment 235,314,579.15 121,543,750.00
Other Creditor's rights investment
Long-term account receivable
Long-term equity investment 105,834,056.10 100,384,428.50
Investment in other equity instrument
Other non-current financial assets 675,882,782.31 628,549,448.31
Investment real estate 51,414,881.00 52,898,060.89
Fixed assets 2,188,206,930.45 2,229,553,866.96
12
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2023
Construction in progress 50,553,531.15 66,522,492.77
Productive biological asset
Oil and gas asset
Right-of-use assets 31,014,133.24 36,646,135.10
Intangible assets 877,640,437.55 900,568,008.21
Expense on research and development 121,489,620.31 102,148,390.57
Goodwill
Long-term expenses to be apportioned 22,192,272.11 14,900,600.59
Deferred income tax asset 165,468,434.03 161,565,695.30
Other non-current assets 2,648,540.47 893,238.57
Total non-current asset 4,527,660,197.87 4,416,174,115.77
Total assets 19,316,478,659.62 16,205,296,370.67
Current liabilities:
Short-term loans 1,069,166,879.76 674,143,916.67
Loan from central bank
Capital borrowed
Trading financial liability 80,786,616.67 41,961,524.78
Derivative financial liability
Note payable 6,393,336,445.87 4,964,374,512.60
Account payable 3,607,840,583.74 2,917,997,138.00
Accounts received in advance
Contract liabilities 309,609,196.24 358,755,397.77
Selling financial asset of repurchase
Absorbing deposit and interbank deposit
Security trading of agency
Security sales of agency
Wage payable 376,298,673.25 348,154,915.13
Taxes payable 105,393,081.13 80,287,878.62
Other account payable 1,003,782,295.20 828,207,568.21
Including: Interest payable
Dividend payable 5,384,407.44 4,978,994.16
Commission charge and commission
payable
Reinsurance payable
Liability held for sale
Non-current liabilities due within one year 40,071,769.96 30,287,099.08
Other current liabilities 17,880,068.15 22,605,269.51
Total current liabilities 13,004,165,609.97 10,266,775,220.37
Non-current liabilities:
Insurance contract reserve
13
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2023
Long-term loans 128,000,000.00 148,000,000.00
Bonds payable
Including: Preferred stock
Perpetual capital securities
Lease liability 23,432,385.40 28,164,287.97
Long-term account payable 886,582.50 1,145,286.48
Long-term wages payable 11,909,163.22 10,790,859.64
Accrual liability 31,667,667.06 32,685,631.78
Deferred income 140,348,297.22 161,013,911.91
Deferred income tax liabilities 13,557,581.74 17,509,503.08
Other non-current liabilities
Total non-current liabilities 349,801,677.14 399,309,480.86
Total liabilities 13,353,967,287.11 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: Treasury shares
Other comprehensive income -19,571,555.60 -20,881,462.63
Special reserve 13,238,702.97 2,467,205.78
Surplus public reserve 441,218,691.48 441,218,691.48
Provision of general risk
Retained profit 1,315,330,385.82 909,249,365.79
Total owner’ s equity attributable to parent
5,586,633,843.97 5,168,471,419.72
company
M inority interests 375,877,528.54 370,740,249.72
Total owner’ s equity 5,962,511,372.51 5,539,211,669.44
Total liabilities and owner’ s equity 19,316,478,659.62 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. Consolidated Income statement between the beginning of the year and end of the report period
In RMB
Item Current period Last period
I. Total operating income 19,167,615,833.84 15,375,374,318.73
Including: Operating income 19,167,615,833.84 15,375,374,318.73
Interest income
14
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2023
Insurance gained
Commission charge and commission income
II. Total operating cost 18,542,771,945.98 15,220,350,623.36
Including: Operating cost 16,590,072,964.21 13,432,282,408.89
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 144,925,448.61 121,545,023.40
Sales expense 1,234,618,461.71 1,082,452,911.29
Administrative expense 265,996,948.80 276,767,176.89
R&D expense 414,730,110.25 386,580,716.87
Financial expenses -107,571,987.60 -79,277,613.98
Including: Interest expenses 19,220,542.10 24,006,944.91
Interest income 138,087,696.57 112,113,274.51
Add: other income 58,843,835.36 78,117,281.45
Investment income (Loss is listed with “-”) 6,121,002.68 19,970,558.55
Including: Investment income on affiliated company and joint
15,050,230.24 7,410,470.62
venture
The termination of income recognition for financial assets
-21,839,275.77 -21,020,148.10
measured by amortized cost
Exchange income (Loss is listed with “-”)
Net exposure hedging income (Loss is listed with “-”)
Income from change of fair value (Loss is listed with “-”) -63,928,733.56 6,783,043.30
Loss of credit impairment (Loss is listed with “-”) -93,458,661.22 -61,885,204.97
Losses of devaluation of asset (Loss is listed with “-”) -19,904,174.33 -35,044,901.69
Income from assets disposal (Loss is listed with “-”) 1,379,107.45 9,653,201.02
III. Operating profit (Loss is listed with “-”) 513,896,264.24 172,617,673.03
Add: Non-operating income 13,003,292.01 7,725,531.66
Less: Non-operating expense 3,477,731.10 4,890,597.15
IV Total profit (Loss is listed with “-”) 523,421,825.15 175,452,607.54
Less: Income tax expense 4,446,696.74 -9,091,804.45
V Net profit (Net loss is listed with “-”) 518,975,128.41 184,544,411.99
(i) Classify by business continuity
1. Net profit from continuing operations (net loss listed with “-”) 518,975,128.41 184,544,411.99
2. Net profit from termination of operations (net loss listed with
“-”)
(ii) Classify by ownership
15
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2023
1.Net profit attributable to owner’s of parent company 498,774,154.38 162,198,444.30
2.M inority shareholders’ gains and losses 20,200,974.03 22,345,967.69
VI. Net after-tax of other comprehensive income 1,562,287.57 733,928.17
Net after-tax of other comprehensive income attributable to
1,309,907.03 666,427.72
owners of parent company
(i) Other comprehensive income items which will not be
reclassified subsequently to profit of loss
1.Changes of the defined benefit plans that re-measured
2.Other comprehensive income under equity method that cannot be
transfer to gain/loss
3.Change of fair value of investment in other equity instrument
4.Fair value change of enterprise's credit risk
5. Other
(ii) Other comprehensive income items which will be reclassified
1,309,907.03 666,427.72
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
1,309,907.03 666,427.72
financial statements
7.Other
Net after-tax of other comprehensive income attributable to
252,380.54 67,500.45
minority shareholders
VII. Total comprehensive income 520,537,415.98 185,278,340.16
Total comprehensive income attributable to owners of parent
500,084,061.41 162,864,872.02
Company
Total comprehensive income attributable to minority shareholders 20,453,354.57 22,413,468.14
VIII. Earnings per share:
(i) Basic earnings per share 0.4843 0.1567
(ii) Diluted earnings per share 0.4843 0.1567
Enterprise combine under the same control in the Period, the combined party realized net profit of 0.00 Yuan
before combination, and realized 0.00 Yuan at last period for combined party.
Legal Representative: Wu Dinggang
Person in charge of accounting works: Pang Haitao
Person in charge of accounting institute: Yang Jun
16
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2023
3. Consolidated Cash Flow Statement Between the Beginning of the Year and End of the Report Period
In RMB
Item Current period Last period
I. Cash flows arising from operating activities:
Cash received from selling commodities and providing labor
19,690,794,267.32 16,406,630,708.13
services
Net increase of customer deposit and interbank deposit
Net increase of loan from central bank
Net increase of capital borrowed from other financial institution
Cash received from original insurance contract fee
Net cash received from reinsurance business
Net increase of insured savings and investment
Cash received from interest, commission charge and commission
Net increase of capital borrowed
Net increase of returned business capital
Net cash received by agents in sale and purchase of securities
Write-back of tax received 545,575,086.82 526,357,420.68
Other cash received concerning operating activities 73,343,301.56 172,312,892.42
Subtotal of cash inflow arising from operating activities 20,309,712,655.70 17,105,301,021.23
Cash paid for purchasing commodities and receiving labor service 15,509,311,028.48 13,083,886,564.95
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 1,443,348,831.94 1,262,282,443.43
Taxes paid 402,056,677.82 429,330,130.27
Other cash paid concerning operating activities 548,729,081.61 490,575,495.74
Subtotal of cash outflow arising from operating activities 17,903,445,619.85 15,266,074,634.39
Net cash flows arising from operating activities 2,406,267,035.85 1,839,226,386.84
II. Cash flows arising from investing activities:
Cash received from recovering investment 630,000,000.00 323,322,268.35
Cash received from investment income 34,088,250.87 34,407,108.44
Net cash received from disposal of fixed, intangible and other
4,027,612.46 16,653,271.93
long-term assets
Net cash received from disposal of subsidiaries and other units
Other cash received concerning investing activities 135,312,830.48 110,063,532.63
Subtotal of cash inflow from investing activities 803,428,693.81 484,446,181.35
Cash paid for purchasing fixed, intangible and other long-term 177,289,681.51 202,669,585.70
17
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2023
assets
Cash paid for investment 1,427,333,334.00 1,150,000,000.00
Net increase of mortgaged loans
Net cash received from subsidiaries and other units obtained
Other cash paid concerning investing activities 73,130,700.88 66,344,241.47
Subtotal of cash outflow from investing activities 1,677,753,716.39 1,419,013,827.17
Net cash flows arising from investing activities -874,325,022.58 -934,567,645.82
III. Cash flows arising from financing activities
Cash received from absorbing investment 368,459,272.52
Including: Cash received from absorbing minority shareholders’
368,459,272.52
investment by subsidiaries
Cash received from loans 1,135,721,085.04 868,040,918.37
Other cash received concerning financing activities 250,002,913.48 11,404,482.95
Subtotal of cash inflow from financing activities 1,385,723,998.52 1,247,904,673.84
Cash paid for settling debts 753,250,888.06 695,000,000.00
Cash paid for dividend and profit distributing or interest paying 126,145,172.10 102,939,182.56
Including: Dividend and profit of minority shareholder paid by
16,677,010.63 25,417,858.64
subsidiaries
Other cash paid concerning financing activities 107,503,081.30 869,994,470.14
Subtotal of cash outflow from financing activities 986,899,141.46 1,667,933,652.70
Net cash flows arising from financing activities 398,824,857.06 -420,028,978.86
IV Influence on cash and cash equivalents due to fluctuation in
1,594,491.69 47,997,201.13
exchange rate
V Net increase of cash and cash equivalents 1,932,361,362.02 532,626,963.29
Add: Balance of cash and cash equivalents at the period-begin 6,113,222,069.76 5,840,194,931.57
VI. Balance of cash and cash equivalents at the period-end 8,045,583,431.78 6,372,821,894.86
Legal Representative: Wu Dinggang
Person in charge of accounting works: Pang Haitao
Person in charge of accounting institute: Yang Jun
（ii）The information of the adjusting items related to the financial statements at the beginning of the
year of first implementation due to the first implementation of new accounting standards from 2023
Adjustment description
√Applicable□ Not applicable
Explanation of Adjustment
The Company made the accounting policy change in accordance with the "Accounting Standard for
Bus iness Enterprises Interpretation No. 16" issued by the Ministry of Finance on November 30, 2022: "The
deferred income tax related to assets and liabilities arising from a single transaction is not subject to the
accounting treatment of the initial recognition exemption", and chose to implement from January 1, 2023.
18
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2023
Based on the cumulative impact as firstly implemented according to the Interpretation, the retained earnings and
other relevant financial statement items at the beginning of the year were adjusted for first implementation,
which was as follows:
Consolidated statements
Affected items 2022-12-31 2023-1-1
Adjustment amount
（Before adjustment) （After adjustment)
Deferred income tax asset 156,630,537.43 4,935,157.87 161,565,695.30
Deferred income tax liability 12,750,747.30 4,758,755.78 17,509,503.08
Surplus reserves 441,201,471.98 17,219.50 441,218,691.48
Retained profit 909,082,037.66 167,328.13 909,249,365.79
M inority shareholders’ equity 370,748,395.26 -8,145.54 370,740,249.72
（iii）Auditor’ report
Is the Third Quarterly Report be audited?
□ Yes √No
The Third Quarterly report is not audited.
The Board of Directors of Changhong Meiling Co., Ltd.
October 24,2023
19
