HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
HEFEI MEILING CO., LTD.
SEMI-ANNUAL REPORT 2015
August 2015
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
Section I. Important Notice, Contents and Paraphrase
Board of Directors, Supervisory Committee, all directors, supervisors and senior executives of
Hefei 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 the Semi-Annual
Report, and shall take all responsibilities, individual and/or joint, for the reality, accuracy and
completion of the whole contents.
There are no 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 on discussing the Semi-Annual Report in both
ways of site and communication.
The Company has no plans of cash dividend distributed, no bonus shares and has no share
converted from capital reserve either.
Chairman of the Company Mr. Liu Tibin, President Mr. Li Wei, Vice President and chief
financial officer Mr. Zhang Xiaolong and Mr.Luo Bo, person in charge of accounting organ
(accounting supervisor) hereby confirm that the Financial Report of Semi-Annual Report 2015 is
authentic, accurate and complete.
The Financial Report of Semi-Annual Report 2015 of the Company had not been audited by
CPAs.
Concerning the forward-looking statements with future planning involved in the Report, they
do not constitute a
Substantial commitment for investors. Investors are advised to exercise caution of investment
risks.
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HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
Content
Section I. Important Notice, Contents and Paraphrase .......................................................... 1
Section II. Company Profile ...................................................................................................... 4
Section III. Accounting data and summary of financial indexes ........................................... 6
Section IV. Report of the Board of Directors ........................................................................... 9
Section V. Important Events .................................................................................................... 32
Section VI. Changes in Shares and Particulars about Shareholders ................................... 99
Section VII. Preferred Stock .................................................................................................. 104
Section VIII Particular about Directors, Supervisors, Senior Executives and Employees105
Section IX. Financial Report ................................................................................................. 106
Section X. Documents Available for Reference ................................................................. 240
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HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
Paraphrase
Items Refers to Contents
Company, the Company or Meiling
Refers to HEFEI MEILING CO., LTD
Electric
Sichuan Changhong or controlling
Refers to Sichuan Changhong Electric Co., LTD
shareholder
Changhong Group Refers to Sichuan Changhong Electronics Group Co., Ltd.
Hong Kong Changhong Refers to Changhong (Hong Kong) Trading Company Limited
Meiling Group Refers to Hefei Meiling Group Holdings Limited
Xingtai Holding Refers to Hefei Xingtai Holding Group Co., Ltd.
Shine Wing Refers to Shine Wing Certified Public Accountants Co., Ltd. (LLP.)
Changhong Air-conditioner Refers to Sichuan Changhong Air-conditioner Co., Ltd.
Jiangxi Meiling Electric Refers to Jiangxi Meiling Electrical Co., Ltd.
Mianyang Meiling Refers to Mianyang Meiling Refrigeration Co., Ltd.
Zhongshan Changhong Refers to Zhongshan Changhong Electric Co., LTD
Mianyang Meiling Software Refers to Mianyang Meiling Software Technology Co., Ltd.
Zhiyijia Refers to Sichuan Zhiyijia Network Technology Co., Ltd.
Changhong Finance Company Refers to Sichuan Changhong Group Finance Co., Ltd.
Tianyou Guigu Refers to Sichuan Tianyou Guigu Technology Co., Ltd.
Huayi Compressor Refers to Huayi Compressor Co., Ltd.
CSRC Refers to China Securities Regulatory Commission
China Securities Regulatory Commission, Anhui Province
Anhui Securities Bureau Refers to
Securities Regulatory Bureau
SSE Refers to Shenzhen Stock Exchange
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HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
Section II. Company Profile
I. Company information
MEILINGDIANQI,
Short form of the Stock Stock code 000521, 200521
WANMEILING-B
Short form of the Stock after
N/A
changed (if applicable)
Listing stock exchange Shenzhen Stock Exchange
Chinese name of the Company 合肥美菱股份有限公司
Short form of the Company (in
美菱电器
Chinese)
Foreign name of the Company(if
HEFEI MEILING CO.,LTD.
applicable)
Abbr. of English name of the
HFML
Company(if applicable)
Legal representative Liu Tibin
II. Contact person and ways
Secretary of the Board Representative of Securities affairs
Name Li Xia Zhu Wenjie
No. 2163, Lian Hua Road, Economic and No. 2163, Lian Hua Road, Economic and
Contact adds.
Technology Development Zone, Hefei Technology Development Zone, Hefei
Tel. 0551-62219021 0551-62219021
Fax. 0551-62219021 0551-62219021
E-mail lixia@meiling.com wenjie.zhu@meiling.com
III. Others
1. 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 2014.
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HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
2. Information disclosure and preparation place
Whether information disclosure and preparation place changed in reporting period or not
□ Applicable √ Not applicable
The newspaper appointed for information disclosure, website for semi-annual report publish
appointed by CSRC and preparation place for semi-annual report have no change in reporting
period, found more details in Annual Report 2014.
3. Registration changes of the Company
Whether registration has changed in reporting period or not
□ Applicable √ Not applicable
Date/place for registration of the Company, registration number for enterprise legal license,
number of taxation registration and organization code have no change in reporting period, found
more details in Annual Report 2014.
4. Other relevant information
Whether other relevant information has changed in reporting period or not
□ Applicable √ Not applicable
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HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
Section III. Accounting data and summary of financial indexes
I. Main accounting data and financial indexes
Whether it has retroactive adjustment or re-statement on previous accounting data for
accounting policy changed and accounting error correction or not
□Yes √ No
Same period of last Increase/decrease in
Current period
year this report y-o-y
Operating revenue (RMB) 6,426,917,289.25 6,344,389,052.17 1.30%
Net profit attributable to shareholders of
158,369,766.68 159,106,275.83 -0.46%
the listed company(RMB)
Net profit attributable to shareholders of
the listed company after deducting 148,569,574.10 143,657,925.11 3.42%
non-recurring gains and losses(RMB)
Net cash flow arising from operating
343,410,987.03 -272,408,725.76 226.06%
activities(RMB)
Basic earnings per share (RMB/Share) 0.2074 0.2083 -0.46%
Diluted earnings per share (RMB/Share) 0.2074 0.2083 -0.46%
0.12 percent point
Weighted average ROE (%) 4.52% 4.64%
down
Increase/decrease in
this report-end over
End of current period End of last period
that of last
period-end
Total assets (RMB) 10,467,292,489.73 9,009,014,201.70 16.19%
Net assets attributable to shareholder of
3,526,953,220.26 3,422,746,664.67 3.04%
listed company(RMB)
Total share capital of the Company up to a trading day before disclosure:
Total share capital of the Company up to a trading
763,739,205
day before disclosure (Share)
Whether share capital of the Company, from period-end to the disclosure date of semi-annual report, has
changed and has influenced on amount of owners’ equity due to the new shares issuing, increase issues in stocks,
allotment, stock ownership incentive exercise and buy-back etc. or not
□Yes √No
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HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
II. Difference of the accounting data under accounting rules in and out of China
1. Difference of the net profit and net assets disclosed in financial report, under both IAS
(International Accounting Standards) and Chinese GAAP (Generally Accepted Accounting
Principles)
□ Applicable √ Not applicable
The Company has no difference of the net profit and net assets disclosed in financial report,
under both IAS (International Accounting Standards) and Chinese GAAP (Generally Accepted
Accounting Principles) in reporting period.
2. Difference of the net profit and net assets disclosed in financial report, under both foreign
accounting rules and Chinese GAAP (Generally Accepted Accounting Principles)
√ Applicable □Not applicable
In RMB
Net profit attributable to shareholders of Net assets attributable to shareholders of
listed company listed company
Amount in this Amount at
Amount in last period Amount at period-begin
period period-end
Chinese GAAP 158,369,766.68 159,106,275.83 3,526,953,220.26 3,422,746,664.67
Items and amount adjusted by foreign accounting rules
Foreign accounting rules 158,369,766.68 159,106,275.83 3,526,953,220.26 3,422,746,664.67
The Company has no difference of the net profit and net assets disclosed in financial report,
under both foreign accounting rules and Chinese GAAP (Generally Accepted Accounting Principles)
in reporting period.
3. Reasons for the differences of accounting data under accounting rules in and out of China
√ Applicable □Not applicable
The ―Notice of Relevant Issues of Audit for Company with Domestically Foreign Shares
Offering‖ was issued from CSRC dated 12 September 2007, since the day issuing, cancel the
previous ―dual audit‖ requirement for companies who offering domestically listed foreign shares
(B-share enterprise) while engaging securities practice qualification CPA for auditing. The
Company did not compile financial report under foreign accounting rules since 2007, the financial
report of the Company is complying on the ―Accounting Standard for Business Enterprise‖ in China,
and therefore, there are no differences of accounting data under accounting rules in and out of
China at period-end.
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HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
III. Items and amounts of extraordinary profit (gains)/loss
√ Applicable □Not applicable
In RMB
Item Amount Note
Gains/losses from the disposal of non-current asset
Found in ―Non-operating
(including the write-off that accrued for impairment of -5,682,027.31
expenditure‖
assets)
Governmental subsidy reckoned into current
gains/losses (not including the subsidy enjoyed in quota Found in ―Non-operating
12,344,884.49
or ration according to national standards, which are expenditure‖
closely relevant to enterprise’s business)
Found in ―Investment
Gain/loss from commissioned investment or assets 517,808.22
income‖
Held transaction financial asset, gains/losses of changes
of fair values from transaction financial liabilities, and
investment gains from disposal of transaction financial Found in ―Investment
asset, transaction financial liabilities and financial asset 4,133,602.00 income‖ and ―Changes in
available for sales, exclude the effective hedging fair value gains/losses‖
business relevant with normal operations of the
Company
Other non-operating income and expenditure except for Found in ―Non-operating
-1,122,350.47
the aforementioned items expenditure‖
Impact on income tax 503,618.35 ——
Impact on minority shareholders’ equity (post-tax) -111,894.00 ——
Total 9,800,192.58 --
Concerning the extraordinary profit (gain)/loss defined by Q&A Announcement No.1 on Information
Disclosure for Companies Offering Their Securities to the Public --- Extraordinary Profit/loss, and 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, explain reasons
□ Applicable √Not applicable
In reporting period, the Company has no particular about 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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HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
Section IV. Report of the Board of Directors
I. Summary
For the first half of 2015, the overall domestic economy presented to be stable with steady
growth, especially the distinct warming-back of real estate market. However, declining pressure and
difficulties also existed in economics. For the first half year, our GDP experienced a year-on-year
increase of 7.0%; the three pillar demands decreased simultaneously; the aggregate import and
export volume decreased by 6.9%; investments to fixed assets recorded nominal increase of 11.4%,
representing a drop of 2.1 percentage points as compared to the first quarter; the aggregate retail
sales amount of consumptives recorded a year-on-year increase of 10.4%, representing a drop of 0.2
percentage points as compared to the first quarter.
In the first half year, competition was getting more furious for home appliance industry,
remarking deteriorating market conditions. During the early period, as driven by the advantageous
policies relating to home appliances sent to countryside and energy saving, this industry was able to
enter into high speed development phrase. However, as those policies gradually faded out, home
appliance industry of China began to fluctuate under the ―New Normal‖ economic conditions, in
particular, the overall performance of both domestic and export refrigerators and air conditioners
continued to shrink in 2015. According to China Market Monitor, retail volume of the domestic
refrigerators sector for the period between January to June 2015 recorded a year-on-year decrease of
2.12%, and 9.03% for air conditioner sector. As illustrated by custom data, export sales of
refrigerators sector for the period between January to June 2015 recorded a year-on-year decrease of
1.18%, and 8.01% for air conditioner sector. During the reporting period, the Company continued to
promote its strategy of ―Double Three Strategies and One Center‖ and practically carry out the
operating policy of ―leading products, sales transformation and improved management‖ as
determined at the beginning of the year, so as to actively respond to all the external negative effects
and in turn enhance its comprehensive competitiveness, under the guideline of Meiling Dream.
During the reporting period, the Company realized operating income of RMB 6.427 billion,
representing a year-on-year increase of 1.30%; and it also realized RMB 158.3698 million net profit
attributable to shareholders of listed issuer, representing a year-on-year decrease of 0.46%.
II. Analysis on major operations
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HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
(I) Summary
Shows no difference with the summary disclosed in Report of the Board of Director
□Yes √No
For the period from January to June 2015, business segment of refrigerator and freezing box
realized operating revenue of RMB 3.511 billion approximately, with a decrease of 1.11% y-o-y.
According to CMM, Meiling refrigerators occupied market share of 7.85% in domestic market in
terms of retail sales for the period from January to June 2015, increasing 0.29% of the same period
of last year; Meiling refrigerators accounted for 9.42% of the market share for the period from
January to June 2015, increasing 1.14% of the same period of last year.
For the period from January to June 2015, business segment of air conditioner realized
operating income of RMB 2.442 billion approximately, with an increase of 4.25% y-o-y. For the
period from January to June 2015, business segment of washing machine realized income of RMB
0.117 billion approximately, with an increase of 34.17% y-o-y.
(II) Year-on-year changes of main financial data
In RMB
Same period of last Y-o-y
Current period Reasons for changes
year increase/decrease
Operation revenue 6,426,917,289.25 6,344,389,052.17 1.30% ——
Operation cost 5,084,245,127.90 4,780,495,721.56 6.35% ——
Sales expenses 945,446,083.20 1,156,472,220.52 -18.25% ——
Administrative
192,562,243.42 194,547,455.17 -1.02% ——
expenses
Financial cost -45,802,594.42 -43,840,298.90 -4.48% ——
Mainly because subsidiary
Mianyang Meiling Software
enjoys the income tax
Income tax preferential policy and part
14,512,173.60 36,794,783.31 -60.56%
expense of the subsidiaries made up
the annual losses of
previous years by pre-tax
profit
R&D expenses 206,928,659.96 215,494,155.61 -3.97% ——
Net cash flow Mainly because the sales
343,410,987.03 -272,408,725.76 226.06%
arising from received in the Period
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HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
operation activities increased on a y-o-y base
Mainly because new
Net cash flow
associated enterprise
arising from
-65,011,572.46 33,272,248.97 -295.39% invested in the Period and
investment
increasing capital for part of
activities
the associated enterprise
Mainly because the
Net cash flow
short-term loans paid by
arising from -164,640,005.09 718,848,755.01 -122.90%
parent company in the
financing activities
Period increased y-o-y
Net increase of The same as ―Net cash flow
cash and cash 123,472,277.33 477,017,942.02 -74.12% arising from financing
equivalent activities‖
Financial assets
Mainly due to the fair value
measured by fair
change of forward foreign
value and whose
3,572,100.00 - 100% exchange contract carried
change is recorded
out by the Company in the
in current gains
Period
and losses
Mainly due to the notes
Notes receivable 1,786,165,001.95 1,223,468,044.05 45.99% received increased in the
Period
Mainly because the
Account proportion of sales from
1,993,308,900.76 1,160,192,277.00 71.81%
receivables credit customer increased
y-o-y in the Period
Mainly because the accrued
interest of the time deposit
of subsidiary Zhongshan
Interest receivable 582,870.63 - 100%
Changhong was recognized,
and there no such item in
last year
Mainly because the export
Other account drawback increased in the
39,765,529.55 28,729,328.80 38.41%
receivable Period without received
temporary
Mainly because new
associated enterprise
Long-term equity
78,096,234.75 14,211,004.21 449.55% invested in the Period and
investment
increasing capital for part of
the associated enterprise
Construction in
28,235,524.90 62,766,707.57 -55.02% Mainly due to the
progress
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HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
construction in process are
transfer to capital by parent
company in the Period
Mainly because the R&D
Expense on investment increased by
Research and 38,620,703.41 25,194,157.09 53.29% parent company, which are
Development not transfer to capital
temporary
Mainly because new time
Other non-current deposit increased by
41,633,616.00 - 100%
asset subsidiary Zhongshan
Changhong in the Year
Financial liabilities
The same as ―Financial
measured by fair
assets measured by fair
value and whose
- 81,170.00 -100.00% value and whose change is
change is recorded
recorded in current gains
in current gains
and losses‖
and losses
Mainly due to the
un-matured note payable
Notes payable 2,638,130,242.78 1,553,110,292.55 69.86%
increased at end of the
Period
Mainly because the salary,
bonus and subsidy for last
Wage payable 105,447,267.73 156,537,212.29 -32.64%
year which are accrued are
paid in the Period
Mainly because payable
VAT increased over that of
Taxes payable 134,142,270.74 51,153,350.18 162.24%
year-begin for sale peak
season during the Period
Mainly because the
Company has bonus carried
Dividend payable 12,592,208.16 2,237,640.91 462.74% out in the Peirod, and part of
the shareholders are not
withdrawal their bonus
Mainly because the
long-term loans from
Long-term loans 48,400,646.40 18,947,000.00 155.45% subsidiary Zhongshan
Changhong increased in the
Period
Mainly because part of the
Minority interests 23,989,945.95 15,634,189.83 53.45% subsidiaries get a profit and
buy the Minority
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HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
shareholders' equity of
subsidiaries in the Period
The same as ―Financial
Changing income assets measured by fair
of fair value(Loss 3,653,270.00 - 100.00% value and whose change is
is listed with ―-‖) recorded in current gains
and losses‖
Investment income Mainly because the
(Loss is listed with -5,484,432.72 -784,297.22 -599.28% associated enterprise losses
―-‖) y-o-y
Including:
Investment income Follow ―investment
on affiliated -6,482,572.94 -784,297.22 -726.55%
company and joint income‖
venture
Including: Mainly because the earnings
Disposal income
14,776.00 1,469,461.36 -98.99% from fixed assets disposal
of non-current
asset decreased y-o-y
Mainly because the losses
Non-operating
9,264,613.15 2,812,927.92 229.36% from fixed assets disposal
expense
increased y-o-y
Including: Follow ―Non-operating
Disposal loss of 5,696,803.31 554,394.53 927.57%
non-current asset expense‖
Mainly because part of the
Minority subsidiaries get a profit
shareholders’ gains 673,108.14 1,890,652.45 -64.40%
and losses declined on a y-o-y basis in
the Period
(III)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
(IV)The future development and planning extended to reporting period that published in
disclosure documents as prospectus, private placing memorandum and recapitalize statement
□ Applicable √ Not applicable
No future development and planning extended to reporting period that published in disclosure
documents as prospectus, private placing memorandum and recapitalize statement
(V)Summary on the progress of the operation plan as disclosed previously by the
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HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
Company during the reporting period
During the Period, the Company formulated an operation plan for year of 2015 by closely
around the established development strategy and business plan for year of 2015, main works are as:
(1)Leading Products
Brand competition was more intensified in 2015. Since industrial scale would not continue to
expand, brand upgrade remained as the key point for development. Adhering to its two major
products-oriented strategy (namely smart and frequency conversion series), the Company made
leading position in smart and frequency conversion products, and promoted ―high-end
differentiation, middle-end serialization and low-end generalization‖ in relation to product research
and development. According to the experiment and reflect from users of CHiQ series I products,
and taking into account the smart development trend of this industry, the Company is in the process
of developing new CHiQ series products. In addition, the Company increased coordination with
upstream compressor manufacturers in connection with developing frequency conversion integrated
products. On 9 March 2015, the Company announced that it begun to cease production of fixed
frequency refrigerators with capacity of 260L or above at the opening ceremony of ―change for
frequency conversion products‖ campaign across the nation, which improved its brand and product
image. For the period from January to June, sales of frequency conversion refrigerators accounted
for more than 20%, laying foundation for its future development.
(2)Switch of sales model
As for domestic market, the Company changed its sales model to end-driven model from the
original policy-supported-driven model, aiming to continuously enhancing the operating capability
of its marketing entities and end sales capability. The Company raised ranking in domestic
refrigerator market, with continuous growth in freezer and washing machine segment. As affected
by the overall decline of the refrigerator industry, the Company maintained substantially the same
revenue as last year. As for overseas market, the Company remained focused on establishment of
core customers, and sales to those core customers increased relatively high. Meanwhile, through
adjustment to refrigerator products structure, sales contribution and scale of large and middle sized
refrigerators were increased, realizing overall growth of refrigerators, freezers and air conditioners.
Besides, the Company received preliminary effect in building its own brands in overseas market.
(3)Management enhancement
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HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
The Company emphasized performance-related culture and established performance-based
assessment system with clear target, quantitative index and performance orientation. In order to
perfect staff construction system, the Company established talents base comprising of excellent
university students and potential leaders. In order to further arouse enthusiasm of its R&D staff, the
Company completed occupation development planning for them. By continuously carrying out
works to improve human, substance and money efficiency, the Company was able to strengthen risk
control, optimize internal procedure system, carry out value creation activities thoroughly and raise
its comprehensive competitiveness.
III. Constitution of main business
In RMB
Increase or Increase or Increase or
decrease of decrease of decrease of
Gross
operating operating cost gross profit
Operating revenue Operating cost profit
revenue over over same ratio over
ratio
same period of period of last same period
last year year of last year
According to industries
Manufacture of
household 6,160,055,353.93 4,849,322,744.97 21.28% 1.56% 7.31% -4.21%
appliances
According to products
Refrigerators,
3,510,601,243.62 2,707,916,216.04 22.86% -1.11% 2.42% -2.66%
freezers
Air
2,441,545,800.41 1,973,497,153.25 19.17% 4.25% 13.36% -6.50%
conditioning
Washing
117,350,072.10 94,819,325.89 19.20% 34.17% 35.74% -0.93%
machine
Others 90,558,237.80 73,090,049.79 19.29% 5.61% 13.62% -5.69%
According to region
Domestic 4,848,200,937.56 3,657,366,355.08 24.56% -4.55% 0.88% -4.07%
Foreign 1,311,854,416.37 1,191,956,389.89 9.14% 33.09% 33.36% -0.18%
IV. Core competence analysis
(I)Company strength
1. Brand capacity
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HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
Hefei Meiling Co., Ltd., one of the famous home appliances manufacturers in the PRC, owns
several product lines such as refrigerator, freezing box and air conditioner. Meiling refrigerator, the
leading products of the Company falls within the national inspection-free products and the first
batch of national famous products, Meiling trademark is listed as one of the most valuable brands in
the PRC. The trademark ―Athena‖ in refrigerator, freezer (services) of the Company was recognized
as the famous mark in Anhui Province. Targeting to further improve its brand image so as to satisfy
the need for product transformation and upgrade, the Company designed new LOGO in the first half
year, and intended to launch the new LOGO in the later half year. In particular, the latest version of
new LOGO will be put in products, terminal display and internal propaganda products, new LOGO
release conference will be convened as appropriate to release the latest LOGO image and brand
proposition, so as to improve the new brand image in general.
2. Product capacity
The Company has been focusing on refrigerator industry for 30 years, launching many
refrigerator products of different types, including Athena series superior refrigerators, the coldest
refrigerator across the world with the record of -192℃ and top superior energy-saving refrigerator
with daily electricity consumption of 0.23 degree and other products which represented the
industrial development trend. As for product quality, the Company owned advanced development
and quality assurance systems, and received certification of ISO9001 and ISO14000 from domestic
and overseas authorities. The products of the Company have good quality and reliable capacities.
As for technology development, the Company owned national technology centers, and advanced
core technologies in energy-saving, air cooling, intelligence and copious cooling. As for product
development, combine with technology development trend and characteristics of demand from
upgrades in consumers, the Company, in 2015, will focus on development of CHiQ intelligent
products and frequency conversion products with obvious upgrading in product structure.
3. Operation capacity
The Company actively carried out superior management activity and enhanced its fundamental
management. The Company established healthy internal control system, strengthened management
control, promoted standardized management through information and prevented operation risks. In
2015, the Company carried out enhancements in personnel, capital and materials; continues to
hoisting capacity of internal management, and enhance the competitiveness of enterprises.
4. Marketing capacity
The Company established healthy sales network and service system. Meanwhile, it established
its business marketing model by means of joint ventures. The Company continued to intensify
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HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
construction of marketing team, and realized balanced development in various channels including
chain, wholesale and e-business, etc. There are 250 new Changhong-Meiling exclusive shops open
in first half of the Year; also, construction of Changhong-Meiling outlet is being progressed well.
Meanwhile, the Company expanded into overseas markets with products exported to more than 100
countries and regions around the world.
(II) Potential risks and countermeasures
The Company will face a grim situation of macroeconomic growth, cold industry, increased
competition, labor tension, human resources costs rising sharply, and crashes from new business
models and internet.
1. Cross-boundary impact from internet
With the arrival of the Internet era and the smart times, the new business models and new
product form emerge in endlessly, the Internet era pursues the user experience and rapid response,
the traditional industries and even the emerging industries which cannot keep up with the trend of
times may easily be replaced or even to be overturned. The new game rules have brought strong
senses of crisis and urgency.
2. Industry competition further aggravates, impact by the cline of whole industry
In recent years, the brand pattern of both the domestic and abroad appliances industry has been
undergoing major upheaval and adjustment, the brands and enterprises do not take the initiative to
keep up with the changing situations would be eliminated. The era of rapid growth in the whole
industry has gone, and now it has entered the era of micro-growth or decline, the industry has
entered a phase of aggressive growth. The severe industry competition may result in the irrational
market competition and bring business risks to the enterprises. The overall market capacity turns
declined in 1st half of the 2015, and show no signs of recovery, vary brand’s competition is more
vehemence.
3. Labor shortage in workman, soaring labor cost
The demographic advantage of China is gradually weakening, the shortage of labor resources
becomes more and more severe, and the insufficient front-line operatives has brought great
challenges to the labor-intensive enterprises like the home appliance industry, increased the
difficulty of production organization, increased the manufacturing costs, and reduced the
Company's profit margins. The labor resources are becoming a major bottleneck to restrict the
development of the industry.
Faced with the above risks, on the one hand, the Company will improve the risk awareness,
17
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
overall arrange the products, technologies, corresponding the upgrade of market competition and
markets in advance, transform the products to be high-end and intelligent, adhere to two product
strategies - intelligence and frequency conversion, enrich the product line, and create a
comprehensive white enterprise; promote the technological innovation, strengthen the research and
development to intelligence, frequency conversion, air-cooling and copious cooling technologies;
attach importance to the development of overseas markets which have great potential for the future
development, and actively explore the construction of own brand in overseas markets; improve the
human resource planning. Matching the labor resources in order to respond the soaring labor costs.
On the other hand, the company will carry out the management principle of "product leader, sales
transformation, management efficiency" under the leadership of the Board and the guidelines of
"Meiling Dream", take globalization as a platform, take intelligence and frequency transformation
as a breakthrough, constantly improve the management and technological innovation, and
strengthen the cooperation with others to achieve the healthy and sustainable development of the
Company.
(III) Operating countermeasures for the second half year
1. Operating policy
For the later half year, the Company will continue to implement the operating policy relating to
―leading products, sales transformation and management enhancement‖. In order to respond
effectively to the deteriorating macro economy and industrial conditions, the Company will focus
on maintaining targets and steady growth. Besides, its comprehensive competitiveness will be
strengthened through enhancement in human, substance and money efficiency. Resources are also
allocated to promote upgrade in its capability of technical innovation and management innovation,
so as to realize sustainable development.
2. Market strategy
As for domestic market, the policies of ―intensified promotion, accelerated transformation,
highlighted terminal and emphasized training‖ continued. In addition to strengthening channel
coordination and consolidation of traditional channel, the Company also turned to E-business, thus
to improve its overall operation capacity. As for overseas market, progress in products, customers
and operation was made as scheduled, seeking for more development in international market.
3. Product strategy
In respect of research and development, the Company speeded up research and development
for new generation of smart products and continued implementing the strategy of ―high-end
differentiation, middle-end series and low-end generation‖. Terminal decoration project continued,
18
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
display of smart and frequency conversion products was improved and promotion sales of smart and
frequency conversion products were intensified, in order to raise sales proportion of these products.
4. Staff construction
Talents base with potential leaders and competition & elimination system in respect of
overseas talents were all constructed, with technical experts elected into such base to establish a
high-efficient team. For the later half year, the Company will conduct the routine leader campaign
again as hold once a year, aiming to find and elect talents through leader campaign, thus to further
emphasize its human resource system featuring with ―leave those who can and eliminate those who
can not‖ to inspire their best potentials.
V. Investment analysis
(I). Situation of equity investment outside
1. Situation of investment outside
√ Applicable □Not applicable
Investment outside
Investment in the same period of
Investment in the reporting (RMB) Changes
last year’s (RMB)
40,000,000 40,950,000 -2.32%
Invested company
Equity
proportion in
Name Main business invested company
for Listed
company
Computer software and hardware development, computer networking
sales and undertakes, import and export of cargo and technology
(projects are prohibited by law and regulations excluded, restrained items
should run with the permit), advertisement design and production,
Sichuan Zhiyijia design, production and sales of pattern, development and sales of
Network household products, use the internet to sell general merchandise, cloth,
30%
Technology Co., leatherwear, shoes and hats, washing products, cosmetics, photographic
Ltd. equipment, toys, stereo system and equipment, household appliances,
electronics, communication equipment and device, instrument, lamps,
electro-mechanical equipments and accessories, machinery equipment
and accessories, prepackaged food, stationery, sports goods, hotel
facilities, travel and cultural goods, gold and silver, jewelry, value-added
19
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
telecom service (entrusted operation), chemical materials and products
(hazardous chemical substance excluded), solar equipment and class-I
medical devices.
Development, manufacture, sales, installation and after-sales services of
the control system for indoor air environment, AHU, air-conditioner,
negative ion products, air purifier and spare part; sales of the house
Sichuan Tianyou
appliance, water heater of air, solar photovoltaic equipment, mechanical
Guigu Technology 25%
and electrical equipment, electronics and refrigeration plant, SI and
Co., Ltd.
installation and after-sale services; equipment leasing and spare part laser
job shop; sales of mental materials, development, sales and software
services
2. Holding equity of financial enterprise
√ Applicable □Not applicable
Proportio Proportio
Gains/loss
Shares held n of Shares held n of
Initial Book value at es in
at shares at shares Accountin Resource
Name Type investment period-end report
period-begin held at period-end held at g items s
capital (RMB) (RMB) period
(Share) period-b (Share) period-e
(RMB)
egin nd
Available
Initial
Huishang Bank Commer for sale
5,000,000.00 10,737,573 0.0972% 10,737,573 0.0972% 5,000,000.00 0 investme
Co., Ltd. cial bank financial
nt
assets
Total 5,000,000.00 10,737,573 -- 10,737,573 -- 5,000,000.00 0 -- --
3. Security investment
□ Applicable √ Not applicable
No security investment in Period.
Explanation on equity of other listed company held
□ Applicable √ Not applicable
The Company had no equity of other listed company held in Period.
4. Explanation on equity of other listed company held
□ Applicable √ Not applicable
The Company had no equity of other listed company held in Period.
(II) Trust financing, derivative investment and trust loans
20
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
1. Trust financing
√ Applicable □Not applicable
In 10 thousand Yuan
Amount
of
reserve
Principa
for
Whether Trust Criteria l Actual
Related devaluat Anticipa
related financi for actually gains/lo
Name relations Type Start date End date ion of ted
trade or ng fixing collecte sses in
hip withdra income
not amount reward d in the period
wing
Period
(if
applicab
le)
Anhui Floatin
Province g
5.4%
branch of procee 2015-6-2
N/A No 10,000 2015-5-22 annual 10,000 0 51.78 51.78
Bank of ds 6
yield
Communicati produ
ons cts
Total 10,000 -- -- -- 10,000 0 51.78 51.78
Capital resource Self-owned capital
Principal uncollected for overdue and
N/A
accumulated earnings
Lawsuit involved (if applicable) Not applicable
Disclosure date for approval from the
2015-3-26
Board for trust financing (if applicable)
Disclosure date for approval from board
of shareholders for trust financing (if 2015-4-18
applicable)
2. Derivative investment
√ Applicable □ Not applicable
In 10 thousand Yuan
Relat Whet Amoun Ratio of
Actual
ed her Investment t of Investment investmen
Initial gains/lo
Operator relati relate Type amount at reserve amount at t amount
investment Start date End date sses in
onshi d period-begin for period-end at
period
p trade devalua period-en
21
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
or not tion of d in net
withdra assets of
wing the
(if Company
applica at
ble) period-en
d
Forward
Financial foreign
N/A No 25,584.61 2014-7-1 2016-12-31 13,319.93 0 25,584.61 7.25% 365.33
institution exchange
contract
Total 25,584.61 -- -- 13,319.93 0 25,584.61 7.25% 365.33
Capital resource(if applicable) Self-owned capital
Lawsuit involved (if
Not applicable
applicable)
Disclosure date for approval
from the Board for investment 2014-4-19 and 2015-3-26
of derivatives (if applicable)
Disclosure date for approval
from board of shareholders for
2014-6-6 and 2015-4-18
investment of derivatives (if
applicable)
Risk analysis:
1. Market risk: domestic and international economic situation changes may lead to exchange rate
fluctuations, forward foreign exchange transactions are under certain market risk. Forward
foreign exchange business is aiming to reducing impact on corporate profits by foreign exchange
settlement and sale prices, exchange rate fluctuations. The Company will follow up the exchange
fluctuation, on the basis of target rate determined from the business, relying on the research of
the foreign currency exchange rates, combined with prediction of consignments, and burdening
Risk analysis and controlling
ability to price variations due to exchange rate fluctuations, then determine the plan of forward
measures for derivatives
foreign exchange contracts, and make dynamic management to the business, to ensure
holdings in the Period
reasonable profit level.
(including but not limited to
2. Liquidity risk: all foreign exchange transactions are based on a reasonable estimate of the
market risk, liquidity risk,
future import and export business, to meet the requirements of the trade authenticity. In addition,
credit risks, operation risk and
forward foreign exchange transactions are processed with bank credit, will not affect liquidity of
law risks etc.)
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 Bank of China, Agricultural Bank of
China, Industrial and Commercial Bank of China, China Construction Bank and other Chinese
Banks and part of the larger foreign Banks (such as Deutsche Bank, UOB, Overseas Chinese
Bank, HSBC, etc.) to conduct the trading of foreign exchange capital. These banks share a solid
22
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
strength and management whose failure and the risk of loss may bring to the Company is very
low.
4. Operational risk: improper operation of the person in charge of forward foreign exchange
transactions may cause related risk also. The Company has formulated related management
system which defines the operation process and responsibility to prevent and control risks.
5. The legal risks: unclear terms based in contract signed with banks for related transactions may
lead legal risks when forward foreign exchange transactions are processing. The Company will
strengthen legal review, and choose good bank to carry out this kind of business as to risk
control.
Invested derivative products The Company determines fair value in accordance with the Chapter VII ―Determination of Fair
have changes in market price Value‖ carried in the Accounting Standards for Business Enterprises No.22 - Recognition and
or fair value in the Period, as Measurement of Financial Instruments. Fair-value is basically obtained according to prices
for analysis of the fair value of offered by bank and other pricing services. While fair-value of derivatives is mainly obtained
derivatives, disclosed specific according to the balance between prices given by outstanding contracts and forward prices given
applied methods and by contracts signed during the reporting period with bank. The differences are identified as
correlation assumption and trading financial assets and liabilities. During the reporting period, forward foreign exchange
parameter setting contracts and losses of the Company is RMB 3.6533 million
Specific principle of the
accounting policy and
calculation for derivatives in
Not applicable
the Period compared with last
period in aspect of major
changes
Upon inspection, the independent directors of the Company believes that: during the reporting
period, the Company carried out its foreign exchange forward deals in strict compliance with the
standardized operation guidelines for listed issuer on main board (2015 amended) issued by
Shenzhen Stock Exchange, the Articles of Association, Authorization Management of the
Company, Management System in relating to Foreign Exchange Forward Deals of Hefei Meiling
Co., Ltd., and these deals were conducted within the authorization scope under general meeting
Special opinion on derivative
and board meeting. The Company was able to lock revenue and costs against its actual business,
investment and risk control by
thus to avoid and prevent from exchange risks and maintain steady operation. The foreign
independent directors
exchange forward deals conducted by the Company were closely related to its normal operation
needs, which was 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.
3. Trust loans
□ Applicable √ Not applicable
No trust loans in Period.
(III) Actual usage of raised capitals
23
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
1. General usage of raised capital
√ Applicable □Not applicable
In 10 thousand Yuan
Total raised capitals 117,795.43
Total raised capital invested in reporting period 230.88
Total accumulative raised capital invested 87,941.96
Total raised fund for changes its usage area in
0
report period
Total accumulative raised fund for changes its
0
usage area
Proportion of total accumulative raised fund for
0.00%
changes its usage area
Explanation on general usage of raised capital
In 2010, the Company implemented private placement of A-share, fund-raising amounting as 1199.99982
million Yuan in total, net amount of fund-raising was 1177.95432 million Yuan after issuance cost 22.0455
million Yuan (underwriting and sponsor fee 20.5 million Yuan included) deducted.
In 2013, the three construction projects with fund-raising investment have completed and reaching the design
capacity, that is ―Athena Luxury refrigerator production base‖, ―Freezer expansion project‖ and ―Expansion
project of environmental and energy-saving refrigerators‖, meanwhile, ―working capital supplementation‖
project implemented and recently, the Company has no other projects that suitable for investment by
fund-raising. According to the operation requirement of the Company, approved by the board of directors, board
of supervisors and general meeting of shareholders , balance of raising funds 284.440959 million Yuan
(including interest 34.832977 million Yuan) up to 30 September 2013 and later interest are supplying the
working capital of the Company permanently. The Company actually withdrawal 291.354985 million Yuan for
working capital supplementation permanently up to 30 June 2015.
Up to the 30th of June 2015, the Company actually used 879.419564 million Yuan accumulatively in
fund-raising, balance of fund-raising accounting as 50.887720 million Yuan (including 1,856,122 Yuan undrawn
used for working capital supplementation, and totally 49,031,598 Yuan ready for contract payment and quality
assurance). More details are:
Athena Luxury refrigerator production base project: total investment amounting to 528,508,471 Yuan in total
after savings deducted. Up to 30th of June 2015, the project accumulatively invested 503,396,607 Yuan, balance
of fund-raising was 25,118,127 Yuan, including 25,111,864 Yuan ready for contract payment and quality
assurance and 6,263 Yuan undrawn used for working capital supplementation permanently.
Capacity expansion project for freezer: the project owns total investment of 251,883,547 Yuan after savings
deducted. Up to 30 June 2015, the project have accumulative investment of 227,963,813 Yuan, balance at
fund-raising account was 25,769,593 Yuan, including amount ready for payment and quality assurance
23,919,734 Yuan and 1,849,859 Yuan without extract used for supply current capital permanently.
24
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
2. Commitments of raised capital
□ Applicable √ Not applicable
3. Changes of raise capital projects
□ Applicable √ Not applicable
No change of raise capital projects in Period.
4. Project with fund raised
□ Applicable √ Not applicable
(IV) Main subsidiary of the Company and stock jointly company analysis
√ Applicable □Not applicable
1. Subsidiary and stock jointly enterprise of the Company
25
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
Register
ed
Main products or capital Operation revenue Operation profit
Name Type Industry Total assets (RMB) Net assets (RMB) Net profit (RMB)
service (10 (RMB) (RMB)
thousan
d Yuan)
Zhongke Meiling Product and sale of
Low-temperature Subsidi Manufac deep-freeze
6,000 132,273,754.26 96,544,688.05 42,750,432.40 2,460,549.93 2,433,399.68
Technology Co., ary turing refrigerator and
Ltd. icebox
Jiangxi Meiling Sales and
Subsidi Manufac
Refrigeration production of 5,000 187,345,608.87 86,770,112.43 199,516,676.80 -424,997.02 836,342.08
ary turing
Co., Ltd. refrigerator
Mianyang Sales and
Meiling Subsidi Manufac production of
10,000 270,343,064.35 98,458,324.75 130,609,659.99 410,137.29 362,409.58
Refrigeration ary turing refrigerator
Co., Ltd.
Sichuan Sales and
Changchun Subsidi Manufac production of
20,000 2,132,336,867.64 597,959,950.75 1,882,758,269.22 24,929,242.85 26,114,016.49
Air-conditioner ary turing air-conditioner
Co., Ltd.
Zhongshan Sales and
Subsidi Manufac
Changhong production of 12,000 875,751,482.10 161,707,969.54 726,792,234.85 8,486,428.75 9,336,506.38
ary turing
Electric Co., LTD air-conditioner
26
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
Sales of
Hefei Meiling refrigeration
Electronic appliance,
Subsidi Manufac
Appliance air-conditioner, 5,500 834,600,891.35 -227,157,645.94 1,955,979,288.71 10,567,584.59 9,048,426.24
ary turing
Marketing Co., washing machine
Ltd. and general
merchandise
Manufacture of
washing machine,
plastic products,
fine welded pipe,
cooling parts,
package products
and decoration;
Hefei Meiling
Subsidi Manufac sales of
Group Holdings 8,000 521,959,595.29 61,554,818.82 194,157,868.56 6,263,461.63 6,318,834.52
ary turing self-production
Limited
products and raw
materials,
machinery
equipment,
instruments and
general
merchandise
27
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
Air-conditioner,
washing machine,
Mianyang refrigerator,
Software
Meiling Software Subsidi freezer etc.
R&D 500 65,053,225.52 58,916,563.06 36,240,483.22 31,051,376.55 35,085,072.86
Technology Co., ary household
sales
Ltd. appliances control,
intelligent software
R&D sales
28
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
(V) Major project with non raised fund
□ Applicable √ Not applicable
The company had no major projects invested by non-raised fund in the reporting period.
VI. Prediction of business performance from January – September 2015
Estimation on accumulative net profit from the beginning of the year to the end of next report
period to be loss probably or the warning of its material change compared with the corresponding
period of the last year and explanation on reason
□ Applicable √ Not applicable
VII. Explanation on “Qualified Opinion” from CPA by the Board and Supervisory
Committee
□ Applicable √ Not applicable
VIII. Explanation from the Board for “Qualified Opinion” of last year’s
□ Applicable √ Not applicable
IX. Implementation of profit distribution in reporting period
Implementation or adjustment of profit distribution plan in reporting period, cash dividend
plan and shares converted from capital reserve in particular
√Applicable □Not applicable
On 24 March 2015 and 17 April 2015, the ―Profit Distribution Plan for year of 2014‖ was
deliberated and approved by 6th meeting of 8th session of the Board, 4th meeting of 8th session of
supervisory committee and annual shareholders’ general meeting of 2014. Independent directors
also express independent acceptance opinion for the proposal. The Company agreed to distribute
0.6 Yuan (tax included) in cash for every 10 shares held by all shareholders of the Company based
on total share capital 763,739,205 shares dated 31 December 2014, took shareholders equity and
long-term development requirement of the Company into consideration overall. Cash dividend of
45,824,352.30 Yuan (tax included, cash dividend representing 23.19% of the distributable profit for
that year) was distributed in total. Total share capital of the Company remain unchanged after
distribution, the remaining retained profit 721,612,718.56 Yuan accumulated will carry forward for
distribution in later years. The Company disclosed the profit distribution plan for year of 2014 on 3
June 2015 and implemented the above said plans.
Found more details in Notice: No.2015-003, No.2015-004, No.2015-015 and No.2015-021
published respectively dated 26 March 2015, 18 April 2015 and 3 June 2015 on appointed website.
29
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
Special explanation on cash dividend policy
Satisfy regulations of General Meeting or requirement of Article of
Y
Association (Y/N):
Well-defined and clearly dividend standards and proportion (Y/N): Y
Completed relevant decision-making process and mechanism
Y
(Y/N):
Independent directors perform duties completely and play a proper
Y
role (Y/N):
Minority shareholders have opportunity to express opinions and
Y
demands totally and their legal rights are fully protected (Y/N):
Condition and procedures are compliance and transparent while the
Y
cash bonus policy adjusted or changed (Y/N):
X. Profit distribution plan and capitalizing of common reserve plan for the Period
□ Applicable √ Not applicable
The Company has no plans of cash dividend distributed, no bonus shares and has no share
converted from capital reserve either for the semi-annual year.
XI. Registration of research, communication and interview in reporting period
√Applicable □Not applicable
Main information
Date Place Way Type objects discussed and
material provided
Operation of the
Conference room Field Institu Essences Securities, Zhong
2015-1-20 Company, no
of the Company research te Ou Asset Management
materials provided
Operation of the
Conference room Field Institu
2015-1-30 Founder Securities Company, no
of the Company research te materials provided
Operation of the
Conference room Field Institu
2015-2-5 Great Wall Securities Company, no
of the Company research te materials provided
Operation of the
Conference room Field Institu
2015-2-11 Sinolink Securities Company, no
of the Company research te materials provided
Operation of the
Conference room Field Institu
2015-4-2 Minsheng Securities Company, no
of the Company research te materials provided
30
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
UBS Securities, Broad Operation of the
Conference room Field Institu
2015-5-6 Peak Investment Advisers Company, no
of the Company research te Pte Ltd materials provided
CITIC Securities, CITIC
Securities, Sun Life
Everbright Life, Haitong
Securities, Hong Fund Operation of the
Conference room Field Institu
2015-5-7 Management Co., Ltd., Company, no
of the Company research te Fudun Investment and materials provided
Consulting Co., Ltd. Bank
of China Investment
Management
Operation of the
Conference room Field Institu Essences Securities, Huaan
2015-5-8 Company, no
of the Company research te Securities
materials provided
Operation of the
Conference room Field Institu Huatai Securities, Industrial
2015-5-13 Company, no
of the Company research te Asset Management
materials provided
Founder Securities, Operation of the
Conference room Field Institu
2015-5-14 Huangshang Fund Company, no
of the Company research te Management, Mirae Asset materials provided
Operation of the
Conference room Field Institu
2015-5-19 GF Securities Company, no
of the Company research te materials provided
Operation of the
Conference room Field Institu
2015-6-5 Bohai Securities Company, no
of the Company research te materials provided
Operation of the
Conference room Field Institu Kingsmead Asset
2015-7-2 Company, no
of the Company research te Management Pte.Ltd.
materials provided
31
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
Section V. Important Events
I. Corporate governance
Actual corporate governance of the Company shows no difference with the Company Law and
requirement of relevant regulations from CSRC.
II. Lawsuits
（I）Material lawsuits and arbitration
□ Applicable √ Not applicable
No material lawsuits and arbitration in the reporting
(II) Other lawsuits
The Company and Meiling Group discharge the Trademark Use Right License Agreement
signed with Hefei Meiling Environmental Equipment Technology Co., Ltd., Hefei Meiling Cleaning
Equipment Technology Co., Ltd., Hefei Meiling Electrical Appliances Co., Ltd., Hefei Meiling
Cabinets and Electrical Co., Ltd., Hefei Meiling Auto Industry Co., Ltd., Hefei Meiling Security
and Protection Products Co., Ltd. and Hefei Meiling Information and Communication Technology
Co., Ltd. respectively by litigation and arbitration, no the above mentioned enterprise have the right
to use a trademark of ―Meiling‖. At the same time, the Company corresponding the action of
―Meiling‖ usage by the above mentioned enterprise who violating laws and rules, by means of
industry and commerce complaints, civil action and report to the police. More details are found in
the 1Q report of 2014, semi-annual report of 2014, clarification announcement on failure to pass
such quality inspection-―Meiling‖ Smoke Exhauster, and annual report 2014 published on 19 April
2014, 12 August, and 16 March 2015, 26 March and 18 April respectively.
III. Questions by media
√ Applicable □Not applicable
Questions by media Date of disclosure Index of disclosure
As reported on 15 March CCTV Banquet, kitchen ventilator
products produced by Zhongshan Branch of Hefei Meiling Small
Home Appliances Co., Ltd. didn’t pass the national quality Juchao Website:
random inspection. The Company paid high attention to the http://www.cninfo.com.cn
aforesaid report and made verification promptly. Later, it 2015-3-16 No.: 2015-002
published the clarification announcement on failure to pass such
quality inspection via the designated information disclosure
media, the major contents of which included: Hefei Meiling
Small Home Appliances Co., Ltd. and its Zhongshan Branch are
32
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
not our subsidiaries without any relation involving assets, equity
interests and operation management. The Company has already
required Meiling Group to discharge the Trademark Use Right
License Agreement signed with Hefei Meiling Small Home
Appliances Co., Ltd immediately, required Small Home
Appliances Company to seal up all the inventories with quality
defects and returned back for rectification, and arranged return,
exchange and free maintenance for those products which were
sold out with quality defects.
IV. Bankruptcy reorganization
□Applicable √ Not applicable
No bankruptcy reorganization in Period.
V. Assets transaction
(I) Acquisition of assets
□Applicable √ Not applicable
No acquisition of assets in Period.
(II) Assets sold
□Applicable √ Not applicable
No assets sold in Period.
(III) Enterprise combination
□Applicable √ Not applicable
No enterprise combination in Period.
VI. Implementation and its influence of equity incentive plan
□Applicable √ Not applicable
No implementation of equity incentive plan in Period.
VII. Material related transaction
(I) Related transaction with daily operation concerned
√ Applicable □Not applicable
33
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
Propo Trading Cleari
Related Related Whether
Type rtion limit ng Availabl
Se transactio transaction over the
of Content of Pricing in approve form e similar Date of
Relate Relations n price (in amount
ria related related principl similar approved for Index of disclosure
d party hip 10 (in 10 d (in 10 market disclosure
l transa transaction e transa limited or related
thousand thousand
ction ctions thousan transa price
Yuan) Yuan) not (Y/N)
(%) d Yuan) ction
Electric
Sichuan Controllin melting, Spot
Changh g Comm resistors, exchan Juchao
ong shareholde odity integrated Marketin ge, 2015-3-26, Website(www.cninfo.co
1 7,272.32 7,272.32 0.02 100,000 No -
Electric r and purcha circuit g price Bank 2015-4-18 m.cn)No.:2015-003,2015
Co., ultimate sed accessory, accepta -004,2015-006,2015-015
LTD controller color nce
masterbatch
Other
enterprise
control
Huayi under the
Comm settlem Juchao
Compre same
odity Compressor Marketin ent by 2015-3-26, Website(www.cninfo.co
2 ssor controllin 28,354.30 28,354.30 6.59% 80,000 No -
purcha etc. g price accepta 2015-4-18 m.cn)No.:2015-003,2015
Co., g
sed nce -004,2015-006,2015-015
Ltd. shareholde
r and
ultimate
controller
34
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
Other
enterprise
Sichuan control
Changh under the
ong Comm Juchao
same Plastic Bank
Mold odity Marketin 2015-3-26, Website(www.cninfo.co
3 controllin products 17,951.28 17,951.28 4.17% 100,000 No accepta -
Plastic purcha g price 2015-4-18 m.cn)No.:2015-003,2015
Tech. g etc. nce
sed -004,2015-006,2015-015
Co., shareholde
Ltd. r and
ultimate
controller
Other
enterprise
control
Sichuan under the
Changh Comm Juchao
ong same Door shell, Bank
odity Marketin 2015-3-26, Website(www.cninfo.co
4 Jijia controllin baseboard 10,254.28 10,254.28 2.38% 100,000 No accepta -
Fine purcha etc. g price 2015-4-18 m.cn)No.:2015-003,2015
g nce
Co., sed -004,2015-006,2015-015
Ltd. shareholde
r and
ultimate
controller
Sichuan Other
Changh
ong enterprise Comm Packing Juchao
Bank
Packag control odity case, Marketin 2015-3-26, Website(www.cninfo.co
5 2,634.77 2,634.77 0.61% 100,000 No accepta -
e under the purcha printed g price 2015-4-18 m.cn)No.:2015-003,2015
Printing matter etc. nce
same sed -004,2015-006,2015-015
Co.,
Ltd. controllin
35
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
g
shareholde
r and
ultimate
controller
Other
enterprise
Sichuan
Changh control
ong under the
Precisio Comm Juchao
same Bank
n odity Marketin 2015-3-26, Website(www.cninfo.co
6 controllin PCB etc. 346.07 346.07 0.08% 100,000 No accepta -
Electro purcha g price 2015-4-18 m.cn)No.:2015-003,2015
nics g nce
sed -004,2015-006,2015-015
Tech. shareholde
Co., r and
Ltd.
ultimate
controller
Other
Sichuan enterprise
Changh control
ong under the
Comm Juchao
New same Spot
odity Marketin 2015-3-26, Website(www.cninfo.co
7 Energy controllin Battery 37.89 37.89 0.01% 100,000 No exchan -
purcha g price 2015-4-18 m.cn)No.:2015-003,2015
Technol g ge
sed -004,2015-006,2015-015
ogy shareholde
Co., r and
Ltd. ultimate
controller
36
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
Other
Sichuan enterprise
Liyuan control
Electro under the
Comm Juchao
nic Co., same Spot
odity Transformer Marketin 2015-3-26, Website(www.cninfo.co
8 Ltd. of controllin 163.70 163.70 0.04% 15,000 No exchan -
purcha and filter g price 2015-4-18 m.cn)No.:2015-003,2015
081 g ge
sed -004,2015-006,2015-015
Electro shareholde
nic r and
Group ultimate
controller
Other
enterprise
control
Mianya Spot
under the
ng Comm exchan Juchao
Hongru same
odity Conductor Marketin ge, 2015-3-26, Website(www.cninfo.co
9 n controllin 471.38 471.38 0.11% 100,000 No -
purcha line etc. g price Bank 2015-4-18 m.cn)No.:2015-003,2015
Electro g
nic Co., sed accepta -004,2015-006,2015-015
Ltd. shareholde
nce
r and
ultimate
controller
Guangd Other
ong
Changh enterprise Comm Juchao
Spot
ong control odity Foam pieces Marketin 2015-3-26, Website(www.cninfo.co
10 305.37 305.37 0.07% 100,000 No exchan -
Electro under the purcha etc. g price 2015-4-18 m.cn)No.:2015-003,2015
nics ge
same sed -004,2015-006,2015-015
Co.,
Ltd. controllin
37
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
g
shareholde
r and
ultimate
controller
Other
Zhongs enterprise
han control
Guangh under the
Comm Juchao
ong same Spot
odity Marketin 2015-3-26, Website(www.cninfo.co
11 Mold controllin Plastic parts 99.22 99.22 0.02% 100,000 No exchan -
purcha g price 2015-4-18 m.cn)No.:2015-003,2015
Techno g ge
sed -004,2015-006,2015-015
logy shareholde
Co., r and
Ltd. ultimate
controller
Other
enterprise
Sichuan control
Hongyu under the
Comm Juchao
Metal same Bank
odity Marketin 2015-3-26, Website(www.cninfo.co
12 Manufa controllin Radiator 34.77 34.77 0.01% 100,000 No accepta -
purcha g price 2015-4-18 m.cn)No.:2015-003,2015
cture g nce
sed -004,2015-006,2015-015
Co., shareholde
Ltd. r and
ultimate
controller
38
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
Other
Guangd enterprise
ong control
Spot
Changh under the
Comm exchan Juchao
ong same
odity Marketin ge, 2015-3-26, Website(www.cninfo.co
13 Digital controllin Hand piece 49.27 49.27 0.01% 100,000 No -
purcha g price Bank 2015-4-18 m.cn)No.:2015-003,2015
Technol g
sed accepta -004,2015-006,2015-015
ogy shareholde
nce
Co., r and
Ltd. ultimate
controller
Other
Guangd enterprise
ong control
Changh under the
Comm Juchao
ong same Bank
odity Rice cooker Marketin 2015-3-26, Website(www.cninfo.co
14 Electric controllin 97.94 97.94 0.02% 100,000 No accepta -
purcha etc. g price 2015-4-18 m.cn)No.:2015-003,2015
Techno g nce
sed -004,2015-006,2015-015
logy shareholde
Co., r and
Ltd. ultimate
controller
Sichuan Other
Printed
Changh enterprise Comm Juchao
board, Bank
ong control odity Marketin 2015-3-26, Website(www.cninfo.co
15 remote 2,111.91 2,111.91 0.49% 100,000 No accepta -
Electro under the purcha g price 2015-4-18 m.cn)No.:2015-003,2015
control and nce
nic same sed -004,2015-006,2015-015
transformer
Devices controllin
39
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
Co., g
Ltd. shareholde
r and
ultimate
controller
Other
enterprise Spot
Sichuan
control exchan
Changh
under the ge ,Co
ong Comm Air Juchao
same mmerc
Xinrui odity conditionin Marketin 2015-3-26, Website(www.cninfo.co
16 controllin 4,355.12 4,355.12 1.01% 15,000 No ial -
Technol purcha g g price 2015-4-18 m.cn)No.:2015-003,2015
g accepta
ogy sed components -004,2015-006,2015-015
shareholde nce
Co.,
r and settlem
Ltd
ultimate ent
controller
Other
enterprise
Sichuan control
Hongw under the
Comm Juchao
ei same Air-conditio Spot
odity Marketin 2015-3-26, Website(www.cninfo.co
17 Techno controllin ner 17.75 17.75 0.00% 100,000 No exchan -
purcha g price 2015-4-18 m.cn)No.:2015-003,2015
logy g components ge
sed -004,2015-006,2015-015
Co., shareholde
Ltd. r and
ultimate
controller
40
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
Sichuan Controllin Spot
Changh g exchan Juchao
Sales
ong shareholde Air-conditio Marketin ge, 2015-3-26, Website(www.cninfo.co
18 of 54,224.47 54,224.47 8.44% 350,000 No -
Electric r and ner g price Bank 2015-4-18 m.cn)No.:2015-003,2015
goods
Co., ultimate accepta -004,2015-006,2015-015
LTD controller nce
Other
enterprise
control
Sichuan under the
Changh Juchao
ong same Sales Bank
Marketin 2015-3-26, Website(www.cninfo.co
19 Jijia controllin of Color plate 1,697.64 1,697.64 0.26% 350,000 No accepta -
Fine g price 2015-4-18 m.cn)No.:2015-003,2015
g goods nce
Co., -004,2015-006,2015-015
Ltd. shareholde
r and
ultimate
controller
Other
enterprise
Sichuan control
Spot
Changh under the
ong exchan Juchao
same Sales Air-conditio
Mold Marketin ge, 2015-3-26, Website(www.cninfo.co
20 controllin of ner, color 5,206.48 5,206.48 0.81% 350,000 No -
Plastic g price Bank 2015-4-18 m.cn)No.:2015-003,2015
Tech. g goods masterbatch
accepta -004,2015-006,2015-015
Co., shareholde
Ltd. nce
r and
ultimate
controller
41
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
Other
enterprise
Mianya control
Air-conditio Spot
ng LJY under the
Comme ner, exchan Juchao
same Sales
rce-Tra refrigerator, Marketin ge, 2015-3-26, Website(www.cninfo.co
21 controllin of 104.48 104.48 0.02% 350,000 No -
ding freezer and g price Bank 2015-4-18 m.cn)No.:2015-003,2015
Chain g goods
washing accepta -004,2015-006,2015-015
Co., shareholde
Ltd. machine nce
r and
ultimate
controller
Other
enterprise
Hong control
Kong under the
Juchao
(Chang same Sales Refrigerator Spot
Marketin 2015-3-26, Website(www.cninfo.co
22 hong) controllin of ,Air-condit 27,291.35 27,291.35 4.25% 350,000 No exchan -
g price 2015-4-18 m.cn)No.:2015-003,2015
Trading g goods ioner ge
-004,2015-006,2015-015
Co., shareholde
Ltd. r and
ultimate
controller
Sichuan Other Comm
Changh enterprise ercial Juchao
Sales Commissio
ong control Marketin accepta 2015-3-26, Website(www.cninfo.co
23 of n processing 2,216.58 2,216.58 0.34% 10,000 No -
Xinrui under the g price nce 2015-4-18 m.cn)No.:2015-003,2015
goods material
Technol same settlem -004,2015-006,2015-015
ogy controllin ent
42
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
Co., g
Ltd shareholde
r and
ultimate
controller
Other
enterprise
Sichuan
control
Changh
under the
ong Sales and Juchao
same Sales Spot
Internat returns of Marketin 2015-3-26, Website(www.cninfo.co
24 controllin of -2.56 -2.56 0.00% 10,000 No exchan -
ional air-conditio g price 2015-4-18 m.cn)No.:2015-003,2015
g goods ge
Hotel ner -004,2015-006,2015-015
shareholde
Co.,
r and
Ltd.
ultimate
controller
Other
enterprise
Sichuan control
Hongw under the
Juchao
ei same Sales Spot
Air-conditio Marketin 2015-3-26, Website(www.cninfo.co
25 Techno controllin of 2.44 2.44 0.00% 350,000 No exchan -
ner g price 2015-4-18 m.cn)No.:2015-003,2015
logy g goods ge
-004,2015-006,2015-015
Co., shareholde
Ltd. r and
ultimate
controller
43
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
Other
enterprise
control
Lejiayi Spot
under the
Chain exchan Juchao
same Sales Refrigerator
Manage Marketin ge, 2015-3-26, Website(www.cninfo.co
26 controllin of , washing 178.30 178.30 0.03% 350,000 No -
ment g price Bank 2015-4-18 m.cn)No.:2015-003,2015
g goods machine
Co., accepta -004,2015-006,2015-015
shareholde
Ltd. nce
r and
ultimate
controller
Other
Zhongs enterprise
han control
Spot
Guangh under the
exchan Juchao
ong same Sales Air-conditio
Marketin ge, 2015-3-26, Website(www.cninfo.co
27 Mold controllin of ner、 75.79 75.79 0.01% 350,000 No -
g price Bank 2015-4-18 m.cn)No.:2015-003,2015
Techno g goods Refrigerator
accepta -004,2015-006,2015-015
logy shareholde
nce
Co., r and
Ltd. ultimate
controller
Sichuan Other
Changh enterprise Juchao
Sales Spot
ong control Air-conditio Marketin 2015-3-26, Website(www.cninfo.co
28 of 14.70 14.70 0.00% 350,000 No exchan -
Devices under the ner g price 2015-4-18 m.cn)No.:2015-003,2015
goods ge
Techno same -004,2015-006,2015-015
logy controllin
44
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
Co., g
Ltd. shareholde
r and
ultimate
controller
Other
Guangd enterprise
ong control
Changh under the
Juchao
ong same Sales Bank
Refrigerator Marketin 2015-3-26, Website(www.cninfo.co
29 Electric controllin of 478.27 478.27 0.07% 350,000 No accepta -
, freezer g price 2015-4-18 m.cn)No.:2015-003,2015
Techno g goods nce
-004,2015-006,2015-015
logy shareholde
Co., r and
Ltd. ultimate
controller
Other
enterprise
Sichuan
control
Changh
under the
ong Juchao
same Sales Spot
Packag Air-conditio Marketin 2015-3-26, Website(www.cninfo.co
30 controllin of 21.16 21.16 0.00% 350,000 No exchan -
e ner g price 2015-4-18 m.cn)No.:2015-003,2015
g goods ge
Printing -004,2015-006,2015-015
shareholde
Co.,
r and
Ltd.
ultimate
controller
45
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
Other
Sichuan
enterprise
Changh
control
ong
under the
Precisio Juchao
same Sales Bank
n Watt-hour Marketin 2015-3-26, Website(www.cninfo.co
31 controllin of 14.92 14.92 0.00% 350,000 No accepta -
Electro meter g price 2015-4-18 m.cn)No.:2015-003,2015
g goods nce
nics -004,2015-006,2015-015
shareholde
Tech.
r and
Co.,
ultimate
Ltd.
controller
Other
enterprise
Sichuan
control
Changh
under the
ong Juchao
same Sales Spot
Minshe Air-conditio Marketin 2015-3-26, Website(www.cninfo.co
32 controllin of 0.08 0.08 0.00% 350,000 No exchan -
ng ner g price 2015-4-18 m.cn)No.:2015-003,2015
g goods ge
Logisti -004,2015-006,2015-015
shareholde
c Co.,
r and
Ltd.
ultimate
controller
Sichuan Other
Liyuan enterprise Juchao
Sales Spot
Electro control Air-conditio Marketin 2015-3-26, Website(www.cninfo.co
33 of 2.45 2.45 0.00% 10,000 No exchan -
nic Co., under the ner bracket g price 2015-4-18 m.cn)No.:2015-003,2015
goods ge
Ltd. of same -004,2015-006,2015-015
081 controllin
46
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
Electro g
nic shareholde
Group r and
ultimate
controller
Other
enterprise
control
081
under the
Electro Sales and Juchao
same Sales Spot
nic returns of Marketin 2015-3-26, Website(www.cninfo.co
34 controllin of -8.49 -8.49 0.00% 10,000 No exchan -
Group air-conditio g price 2015-4-18 m.cn)No.:2015-003,2015
g goods ge
Co., ner -004,2015-006,2015-015
shareholde
Ltd.
r and
ultimate
controller
Other
Sichuan enterprise
Service control
Exp. under the
Juchao
Applian same Sales Spot
Air-conditio Marketin 2015-3-26, Website(www.cninfo.co
35 ce controllin of 286.92 286.92 0.04% 350,000 No exchan -
ner g price 2015-4-18 m.cn)No.:2015-003,2015
Service g goods ge
-004,2015-006,2015-015
Chain shareholde
Co., r and
Ltd. ultimate
controller
47
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
Other
Sichuan enterprise
Changh control
ong under the
Juchao
Gerun same Sales Spot
Waste Marketin 2015-3-26, Website(www.cninfo.co
36 Renewa controllin of 445.82 445.82 0.07% 350,000 No exchan -
materials g price 2015-4-18 m.cn)No.:2015-003,2015
ble g goods ge
-004,2015-006,2015-015
Resour shareholde
ces Co., r and
Ltd. ultimate
controller
Other
enterprise
control
Hefei
under the
Changh Juchao
same Sales Bank
ong Marketin 2015-3-26, Website(www.cninfo.co
37 controllin of Packing box 209.32 209.32 0.03% 350,000 No accepta -
Industri g price 2015-4-18 m.cn)No.:2015-003,2015
g goods nce
al Co., -004,2015-006,2015-015
shareholde
Ltd.
r and
ultimate
controller
Other
Sichuan enterprise Juchao
Sales Spot
Huafen control Air-conditio Marketin 2015-3-26, Website(www.cninfo.co
38 of 3.13 3.13 0.00% 10,000 No exchan -
g Corp. under the ner g price 2015-4-18 m.cn)No.:2015-003,2015
goods ge
Group same -004,2015-006,2015-015
controllin
48
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
g
shareholde
r and
ultimate
controller
Other
enterprise
control
under the
Changh Juchao
same Sales Spot
ongEur Marketin 2015-3-26, Website(www.cninfo.co
39 controllin of Refrigerator 92.42 92.42 0.01% 350,000 No exchan -
opeElec g price 2015-4-18 m.cn)No.:2015-003,2015
g goods ge
trics.r.o -004,2015-006,2015-015
shareholde
r and
ultimate
controller
Other
enterprise
Sichuan
control
Changh
under the
ong Juchao
same Sales Spot
Electro Air-conditio Marketin 2015-3-26, Website(www.cninfo.co
40 controllin of 22.76 22.76 0.00% 350,000 No exchan -
nic ner g price 2015-4-18 m.cn)No.:2015-003,2015
g goods ge
Devices -004,2015-006,2015-015
shareholde
Co.,
r and
Ltd.
ultimate
controller
49
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
Other
Chengd enterprise
u control
Changh under the
Juchao
ong same Sales Spot
Air-conditio Marketin 2015-3-26, Website(www.cninfo.co
41 Minshe controllin of 4.20 4.20 0.00% 350,000 No exchan -
ner g price 2015-4-18 m.cn)No.:2015-003,2015
ng g goods ge
-004,2015-006,2015-015
Logisti shareholde
c Co., r and
Ltd. ultimate
controller
Other
enterprise
Guangy control
uan under the
Juchao
Hongch same Sales Air-conditio Spot
Marketin 2015-3-26, Website(www.cninfo.co
42 eng controllin of ner 0.03 0.03 0.00% 10,000 No exchan -
g price 2015-4-18 m.cn)No.:2015-003,2015
Industri g goods components ge
-004,2015-006,2015-015
al Co., shareholde
Ltd. r and
ultimate
controller
Guangy Other
uan enterprise Juchao
Sales Spot
Changh control Air-conditio Marketin 2015-3-26, Website(www.cninfo.co
43 of 2.99 2.99 0.00% 350,000 No exchan -
ong under the ner g price 2015-4-18 m.cn)No.:2015-003,2015
goods ge
Mold same -004,2015-006,2015-015
Techno controllin
50
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
logy g
Co., shareholde
Ltd. r and
ultimate
controller
Other
enterprise
Sichuan
control
Zhiyijia Comm
under the
Networ ercial Juchao
same Sales
k Air-conditio Marketin accepta 2015-3-26, Website(www.cninfo.co
44 controllin of 27,806.61 27,806.61 4.33% 350,000 No -
Techno ner g price nce 2015-4-18 m.cn)No.:2015-003,2015
g goods
logy settlem -004,2015-006,2015-015
shareholde
Co., ent
r and
Ltd.
ultimate
controller
Other
enterprise
Chengd control
u under the
Juchao
Changh same Sales Spot
Air-conditio Marketin 2015-3-26, Website(www.cninfo.co
45 ong controllin of 1.38 1.38 0.00% 350,000 No exchan -
ner g price 2015-4-18 m.cn)No.:2015-003,2015
Propert g goods ge
-004,2015-006,2015-015
y Co., shareholde
Ltd. r and
ultimate
controller
51
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
Other
enterprise
Anhui
control
Xingha Spot
under the
o exchan Juchao
same Sales
Plasma Air-conditio Marketin ge, 2015-3-26, Website(www.cninfo.co
46 controllin of 53.85 53.85 0.01% 10,000 No -
Display ner g price Bank 2015-4-18 m.cn)No.:2015-003,2015
g goods
Panels accepta -004,2015-006,2015-015
shareholde
Co., nce
r and
Ltd.
ultimate
controller
Other
enterprise
Sichuan control
Spot
Changh under the
Rent to Workshop exchan Juchao
ong same
the rental, Marketin ge, 2015-3-26, Website(www.cninfo.co
47 Jijia controllin 35.01 35.01 0.44% 3,000 No -
related forklift,equi g price Bank 2015-4-18 m.cn)No.:2015-003,2015
Fine g
party pment accepta -004,2015-006,2015-015
Co., shareholde
nce
Ltd. r and
ultimate
controller
Sichuan Other Spot
Changh enterprise Rent to Workshop exchan Juchao
ong control the rental, Marketin ge, 2015-3-26, Website(www.cninfo.co
48 90.61 90.61 1.13% 3,000 No -
Mold under the related warehouse g price Bank 2015-4-18 m.cn)No.:2015-003,2015
Plastic same party rental accepta -004,2015-006,2015-015
Tech. controllin nce
52
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
Co., g
Ltd. shareholde
r and
ultimate
controller
Other
enterprise
Sichuan
control
Changh
under the
ong Rent to Juchao
same Bank
Xinrui the Marketin 2015-3-26, Website(www.cninfo.co
49 controllin Forklift 0.04 0.04 0.00% 10,000 No accepta -
Techno related g price 2015-4-18 m.cn)No.:2015-003,2015
g nce
logy party -004,2015-006,2015-015
shareholde
Co.,
r and
Ltd
ultimate
controller
Other
enterprise
control
BVCH
under the
Optroni Rent to Juchao
same Freight Spot
cs the Marketin 2015-3-26, Website(www.cninfo.co
50 controllin elevator 6.37 6.37 0.08% 3,000 No exchan -
(Sichua related g price 2015-4-18 m.cn)No.:2015-003,2015
g rental ge
n) Co., party -004,2015-006,2015-015
shareholde
Ltd.
r and
ultimate
controller
53
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
Other
enterprise
Guangd
control
ong Part of
under the
Changh Rent to office Juchao
same Spot
ong the building for Marketin 2015-3-26, Website(www.cninfo.co
51 controllin 63.61 63.61 0.79% 3,000 No exchan -
Electro related rent, living g price 2015-4-18 m.cn)No.:2015-003,2015
g ge
nics party quarters II -004,2015-006,2015-015
shareholde
Co., rental
r and
Ltd.
ultimate
controller
Other
Guangd enterprise
ong control
Changh under the
Rent to Juchao
ong same Meiling Spot
the Marketin 2015-3-26, Website(www.cninfo.co
52 Electric controllin trademark 0 0 0 3,000 No exchan -
related g price 2015-4-18 m.cn)No.:2015-003,2015
Techno g rights ge
party -004,2015-006,2015-015
logy shareholde
Co., r and
Ltd. ultimate
controller
Guangd Other
ong enterprise Rent to Juchao
Living Spot
Changh control the Marketin 2015-3-26, Website(www.cninfo.co
53 quarters II 1.45 1.45 0.02% 3,000 No exchan -
ong under the related g price 2015-4-18 m.cn)No.:2015-003,2015
rental ge
Electric same party -004,2015-006,2015-015
Techno controllin
54
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
logy g
Co., shareholde
Ltd. r and
ultimate
controller
Other
enterprise
Sichuan control
Hongw under the
Rent to Juchao
ei same Living Spot
the Marketin 2015-3-26, Website(www.cninfo.co
54 Techno controllin quarters II 0.34 0.34 0.00% 3,000 No exchan -
related g price 2015-4-18 m.cn)No.:2015-003,2015
logy g rental ge
party -004,2015-006,2015-015
Co., shareholde
Ltd. r and
ultimate
controller
Other
enterprise
Sichuan
control
Changh
under the Part of
ong Rent to Juchao
same office Spot
Minshe the Marketin 2015-3-26, Website(www.cninfo.co
55 controllin building for 2.81 2.81 0.03% 3,000 No exchan -
ng related g price 2015-4-18 m.cn)No.:2015-003,2015
g rent, living ge
Logisti party -004,2015-006,2015-015
shareholde quarters II
c Co.,
r and
Ltd.
ultimate
controller
55
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
Other
Zhongs enterprise
han control
Guangh under the
Rent to Juchao
ong same Living Spot
the Marketin 2015-3-26, Website(www.cninfo.co
56 Mold controllin quarters 0.58 0.58 0.01% 3,000 No exchan -
related g price 2015-4-18 m.cn)No.:2015-003,2015
Techno g rental ge
party -004,2015-006,2015-015
logy shareholde
Co., r and
Ltd. ultimate
controller
Other
enterprise
Sichuan
control
Changh
under the
ong Rent to Juchao
same Spot
Packag the Warehouse Marketin 2015-3-26, Website(www.cninfo.co
57 controllin 0.23 0.23 0.00% 3,000 No exchan -
e related rental g price 2015-4-18 m.cn)No.:2015-003,2015
g ge
Printing party -004,2015-006,2015-015
shareholde
Co.,
r and
Ltd.
ultimate
controller
Sichuan Controllin
Rent
Changh g Juchao
from Building Spot
ong shareholde Marketin 2015-3-26, Website(www.cninfo.co
58 the and office 393.26 393.26 4.89% 3,000 No exchan -
Electric r and g price 2015-4-18 m.cn)No.:2015-003,2015
related rental ge
Co., ultimate -004,2015-006,2015-015
party
LTD controller
56
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
Other
Guangd enterprise
ong control
Changh under the Rent
Juchao
ong same from Bank
Warehouse Marketin 2015-3-26, Website(www.cninfo.co
59 Electric controllin the 28.00 28 0.35% 3,000 No accepta -
rental g price 2015-4-18 m.cn)No.:2015-003,2015
Techno g related nce
-004,2015-006,2015-015
logy shareholde party
Co., r and
Ltd. ultimate
controller
Sichuan
Changh Controllin
Rent
ong g Juchao
from Staff Spot
Electro shareholde Marketin 2015-3-26, Website(www.cninfo.co
60 the dormitory 0.28 0.28 0.00% 15,000 No exchan -
nics r and g price 2015-4-18 m.cn)No.:2015-003,2015
related rental ge
Group ultimate -004,2015-006,2015-015
party
Co., controller
Ltd.
Sichuan Controllin
Line body
Changh g Purcha Juchao
transformati Bank
ong shareholde se of Marketin 2015-3-26, Website(www.cninfo.co
61 on, project 246.42 246.42 3.62% 5,000 No accepta -
Electric r and fixed g price 2015-4-18 m.cn)No.:2015-003,2015
developmen nce
Co., ultimate assets -004,2015-006,2015-015
t
LTD controller
Sichuan Other Purcha Software Bank Juchao
Marketin 2015-3-26,
62 Hongxi enterprise se of developmen 49.53 49.53 0.73% 5,000 No accepta - Website(www.cninfo.co
g price 2015-4-18
n control fixed t, system nce m.cn)No.:2015-003,2015
57
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
Softwar under the assets optimizatio -004,2015-006,2015-015
e Co., same n
Ltd. controllin
g
shareholde
r and
ultimate
controller
Other
enterprise
Sichuan
control
Changh
under the
ong Purcha Purchase of Juchao
same Spot
Electro se of video Marketin 2015-3-26, Website(www.cninfo.co
63 controllin 32.91 32.91 0.48% 5,000 No exchan -
nic fixed monitoring g price 2015-4-18 m.cn)No.:2015-003,2015
g ge
System assets system -004,2015-006,2015-015
shareholde
Co.,
r and
Ltd.
ultimate
controller
Sichuan Other
Liyuan enterprise
Electro control
Purcha Juchao
nic Co., under the Line body Spot
se of Marketin 2015-3-26, Website(www.cninfo.co
64 Ltd. of same transformati 5.98 5.98 0.09% 15,000 No exchan -
fixed g price 2015-4-18 m.cn)No.:2015-003,2015
081 controllin on ge
assets -004,2015-006,2015-015
Electro g
nic shareholde
Group r and
58
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
ultimate
controller
Other
Sichuan enterprise
Changh control
ong under the
Sales Juchao
New same Spot
of Disposal of Marketin 2015-3-26, Website(www.cninfo.co
65 Energy controllin 1.50 1.5 0.89% 5,000 No exchan -
fixed waste assets g price 2015-4-18 m.cn)No.:2015-003,2015
Techno g ge
assets -004,2015-006,2015-015
logy shareholde
Co., r and
Ltd. ultimate
controller
Information
Sichuan Controllin Spot
Receiv system
Changh g exchan Juchao
ing services,
ong shareholde Marketin ge, 2015-3-26, Website(www.cninfo.co
66 labor marketing 442.23 442.23 0.56% 5,000 No -
Electric r and g price Bank 2015-4-18 m.cn)No.:2015-003,2015
service fee,
Co., ultimate accepta -004,2015-006,2015-015
s installation
LTD controller nce
fee
Sichuan Other Receiv Spot
Transportati Juchao
Changh enterprise ing exchan
on, storage, Marketin 22.20 2015-3-26, Website(www.cninfo.co
67 ong control labor 17,417.32 17,417.32 50,000 No ge, -
loading and g price % 2015-4-18 m.cn)No.:2015-003,2015
Minshe under the service Bank
unloading -004,2015-006,2015-015
ng same s accepta
59
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
Logisti controllin nce
c Co., g
Ltd. shareholde
r and
ultimate
controller
Other
Sichuan enterprise
Service control
Spot
Exp. under the Receiv
exchan Juchao
Applian same ing After-sales
Marketin ge, 2015-3-26, Website(www.cninfo.co
68 ce controllin labor maintenanc 5,735.41 5,735.41 7.31% 20,000 No -
g price Bank 2015-4-18 m.cn)No.:2015-003,2015
Service g service e fee etc.
accepta -004,2015-006,2015-015
Chain shareholde s
nce
Co., r and
Ltd. ultimate
controller
Other
enterprise
Sichuan control
Hongw under the Receiv
Project Juchao
ei same ing Spot
cooperation Marketin 2015-3-26, Website(www.cninfo.co
69 Techno controllin labor 58.12 58.12 0.07% 5,000 No exchan -
developmen g price 2015-4-18 m.cn)No.:2015-003,2015
logy g service ge
t -004,2015-006,2015-015
Co., shareholde s
Ltd. r and
ultimate
controller
60
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
Other
enterprise
Guangd
control
ong
under the Receiv
Changh Juchao
same ing Spot
ong Other Marketin 2015-3-26, Website(www.cninfo.co
70 controllin labor 2.64 2.64 0.00% 5,000 No exchan -
Electro service fees g price 2015-4-18 m.cn)No.:2015-003,2015
g service ge
nics -004,2015-006,2015-015
shareholde s
Co.,
r and
Ltd.
ultimate
controller
Other
enterprise
Sichuan
control
Changh
under the Receiv
ong Juchao
same ing Bank
Mold Processing Marketin 2015-3-26, Website(www.cninfo.co
71 controllin labor 1.23 1.23 0.00% 5,000 No accepta -
Plastic fee g price 2015-4-18 m.cn)No.:2015-003,2015
g service nce
Tech. -004,2015-006,2015-015
shareholde s
Co.,
r and
Ltd.
ultimate
controller
Sichuan Other
Receiv
Changh enterprise Juchao
ing Spot
ong control Equipment Marketin 2015-3-26, Website(www.cninfo.co
72 labor 0.43 0.43 0.00% 5,000 No exchan -
Jijia under the repair g price 2015-4-18 m.cn)No.:2015-003,2015
service ge
Fine same -004,2015-006,2015-015
s
Co., controllin
61
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
Ltd. g
shareholde
r and
ultimate
controller
Other
enterprise
control
Sichuan under the Receiv
Juchao
Jiahong same ing Spot
Advertising Marketin 2015-3-26, Website(www.cninfo.co
73 Industri controllin labor 1.44 1.44 0.00% 15,000 No exchan -
fees g price 2015-4-18 m.cn)No.:2015-003,2015
al Co., g service ge
-004,2015-006,2015-015
Ltd. shareholde s
r and
ultimate
controller
Other
enterprise
Changh
control
ong
under the Receiv
(Hong Juchao
same ing Spot
Kong) Marketin 2015-3-26, Website(www.cninfo.co
74 controllin labor Other fees 0.88 0.88 0.00% 5,000 No exchan -
Trading g price 2015-4-18 m.cn)No.:2015-003,2015
g service ge
Compa -004,2015-006,2015-015
shareholde s
ny
r and
Limited
ultimate
controller
62
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
Other
enterprise
Guangd
control
ong
under the
Changh Providi Juchao
same Water and Spot
ong ng fuel Marketin 2015-3-26, Website(www.cninfo.co
75 controllin electricity 31.52 31.52 0.00% 350,000 No exchan -
Electro and g price 2015-4-18 m.cn)No.:2015-003,2015
g fee ge
nics power -004,2015-006,2015-015
shareholde
Co.,
r and
Ltd.
ultimate
controller
Other
enterprise
Sichuan
control
Changh
under the
ong Providi Juchao
same Water and Spot
Minshe ng fuel Marketin 2015-3-26, Website(www.cninfo.co
76 controllin electricity 1.20 1.2 0.00% 350,000 No exchan -
ng and g price 2015-4-18 m.cn)No.:2015-003,2015
g fee ge
Logisti power -004,2015-006,2015-015
shareholde
c Co.,
r and
Ltd.
ultimate
controller
Sichuan Other
Service enterprise Providi Juchao
Water and Spot
Exp. control ng fuel Marketin 2015-3-26, Website(www.cninfo.co
77 electricity 0.01 0.01 0.00% 350,000 No exchan -
Applian under the and g price 2015-4-18 m.cn)No.:2015-003,2015
fee ge
ce same power -004,2015-006,2015-015
Service controllin
63
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
Chain g
Co., shareholde
Ltd. r and
ultimate
controller
Other
Zhongs enterprise
han control
Guangh under the
Providi Juchao
ong same Water and Spot
ng fuel Marketin 2015-3-26, Website(www.cninfo.co
78 Mold controllin electricity 0.08 0.08 0.00% 350,000 No exchan -
and g price 2015-4-18 m.cn)No.:2015-003,2015
Techno g fee ge
power -004,2015-006,2015-015
logy shareholde
Co., r and
Ltd. ultimate
controller
Other
enterprise
Sichuan control
Changh under the
Providi Juchao
ong same Water, Spot
ng fuel Marketin 2015-3-26, Website(www.cninfo.co
79 Jijia controllin electricity 21.18 21.18 0.00% 350,000 No exchan -
and g price 2015-4-18 m.cn)No.:2015-003,2015
Fine g and gas fee ge
power -004,2015-006,2015-015
Co., shareholde
Ltd. r and
ultimate
controller
64
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
Other
enterprise
Sichuan
control
Changh
under the
ong Providi Juchao
same Water, Spot
Mold ng fuel Marketin 2015-3-26, Website(www.cninfo.co
80 controllin electricity 325.59 325.59 0.05% 350,000 No exchan -
Plastic and g price 2015-4-18 m.cn)No.:2015-003,2015
g and gas fee ge
Tech. power -004,2015-006,2015-015
shareholde
Co.,
r and
Ltd.
ultimate
controller
Other
enterprise
Sichuan control
Hongw under the
Providi Juchao
ei same Water and Spot
ng fuel Marketin 2015-3-26, Website(www.cninfo.co
81 Techno controllin electricity 0.02 0.02 0.00% 350,000 No exchan -
and g price 2015-4-18 m.cn)No.:2015-003,2015
logy g fee ge
power -004,2015-006,2015-015
Co., shareholde
Ltd. r and
ultimate
controller
Guangd Other
ong enterprise Providi Juchao
Water and Spot
Changh control ng fuel Marketin 2015-3-26, Website(www.cninfo.co
82 electricity 0.12 0.12 0.00% 350,000 No exchan -
ong under the and g price 2015-4-18 m.cn)No.:2015-003,2015
fee ge
Electric same power -004,2015-006,2015-015
Techno controllin
65
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
logy g
Co., shareholde
Ltd. r and
ultimate
controller
Sichuan Controllin
Accept
Changh g Juchao
ing Water, Spot
ong shareholde Marketin 2015-3-26, Website(www.cninfo.co
83 fuel electricity 532.15 532.15 0.12% 100,000 No exchan -
Electric r and g price 2015-4-18 m.cn)No.:2015-003,2015
and and gas fee ge
Co., ultimate -004,2015-006,2015-015
power
LTD controller
Other
enterprise
control
Huayi under the Accept
Compressed Juchao
Compre same ing Spot
air, Marketin 2015-3-26, Website(www.cninfo.co
84 ssor controllin fuel 19.30 19.3 0.00% 100 No exchan -
electricity g price 2015-4-18 m.cn)No.:2015-003,2015
Co., g and ge
fees -004,2015-006,2015-015
Ltd. shareholde power
r and
ultimate
controller
Total -- - 220,554.63 - - - -- -- -- --
Detail of sales return with major amount involved -
Report the actual implementation of the daily related Being deliberated and approved by annual shareholders general meeting of 2014, the daily related transaction amount for year of 2015
transactions which were projected about their total was estimated as:
amount by types during the reporting period(if 1. It is estimated that the related transaction amount resulted by purchasing goods (including door shell and plastic products etc.) and
applicable) accepting fuel and power from Sichuan Changhong and its subsidiary by the Company for year of 2015 was RMB 1000 million at most
66
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
(tax-excluded), actually RMB 422.1637 million occurred in reporting period (tax-excluded).
2. It is estimated that the related transaction amount resulted by purchasing goods (including compressor purchased etc.) from Huayi
Compressor and its subsidiary by the Company for year of 2015 was RMB 800 million at most (tax-excluded), actually RMB 283.5430
million occurred in reporting period (tax-excluded).
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 2015 was RMB 50 million at most (tax-excluded),
actually RMB 3.3036 million occurred in reporting period (tax-excluded).
4. It is estimated that the related transaction amount resulted by purchasing goods from and providing fuel and power to Sichuan
Changhong and its subsidiary by the Company for year of 2015 was RMB 3500 million at most (tax-excluded), actually RMB 1185.6222
million occurred in reporting period (tax-excluded).
5. It is estimated that the related transaction amount resulted by purchasing compressed air, leasing facilities of automatic fire protection
system etc. and accepting logistic service from Huayi Compressor and its subsidiary by the Company for year of 2015 was RMB 1 million
at most (tax-excluded), actually RMB 193,000 occurred in reporting period (tax-excluded).
6. It is estimated that the related transaction amount resulted by leasing business from Sichuan Changhong and its subsidiary by the
Company for year of 2015 was RMB 30 million at most (tax-excluded), actually RMB 6.2227 million occurred in reporting period
(tax-excluded).
7. It is estimated that the related transaction amount from domestic finished goods logistic business outsourcing to Sichuan Changhong
Minsheng Logistic Co., Ltd. by the Company for year of 2015 was RMB 500 million at most (tax-excluded), actually RMB 174.1732
million occurred in reporting period (tax-excluded).
8. 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 2015 was RMB 200 million at most (tax-excluded), actually RMB 57.3541
million occurred in reporting period (tax-excluded).
9. 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 2015 was RMB 50 million at most
(tax-excluded), actually RMB 5.0553 million occurred in reporting period (tax-excluded).
10. It is estimated that the related transaction amount resulted by selling goods from Sichuan Changhong Electronics Group and its
subsidiary by the Company for year of 2015 was RMB 100 million at most (tax-excluded), actually RMB 22.6503 million occurred in
67
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
reporting period.
11. It is estimated that the related transaction amount resulted by purchasing goods and receiving labor services etc. from Sichuan
Changhong Electronics Group and its subsidiary by the Company for year of 2015 was RMB 150 million at most (tax-excluded), actually
RMB 45.2652 million occurred in reporting period.
Reasons for major differences between trading price
Not applicable
and market reference price
68
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
(II) Related transactions between the Company and Changhong Finance Company
According to the three-year Financial Services Agreement that the Company signed with
Changhong Finance Company, Changhong Finance Company should provide a range of financial
services within its business scope in accordance with the requirements of the Company and its
subsidiaries, including but not limited to deposit services, settlement services, loan services, bill
discounting services, guarantees and other businesses approved by the China Banking Regulatory
Commission. Related transactions between the Company and Changhong Finance Company in the
half year of 2015 are as follows:
Up to 30th of June 2015, the Company and its subsidiary have opened financial business as
savings, note drawing and notes discounted with Changhong Finance Company. The Company and
its subordinate company owns 986,230,115.61 Yuan savings in Changhong Finance Company, takes
16.66% of the deposit taking balance in Changhong Finance Company without 30% occupied, notes
drawing was 698,739,353.69 Yuan and notes discounted as 687,109,110.90 Yuan. More details are:
In RMB
Interest and
Balance at Increase in the Decrease in the Balance at commission
Name
period-begin year year period-end charge received
or paid
I. Savings in
Changhong Group 1,040,209,426.68 4,753,894,052.61 4,807,873,363.68 986,230,115.61 14,865,885.04
Finance Company
II. Borrowings
from Changhong
- - - - -
Group Finance
Company
1.Short-term loans - - - - -
2.Long-term loans - - - - -
III. Other financial
- - - - -
business
1. notes
258,631,647.68 707,767,370.55 267,659,664.54 698,739,353.69 -
drawing
2. notes
210,940,218.46 690,307,526.33 214,138,633.89 687,109,110.90 7,476,718.96
discounted
69
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
3. Other - - - - -
(III) Related transaction arising from assets acquisition and sold
□ Applicable √ Not applicable
No Related transaction arising from assets acquisition and sold in reporting period.
(IV) Material related transaction of jointly foreign investment
□ Applicable √ Not applicable
The Company has no material related transaction of jointly foreign investment occurred in
reporting period.
(V) 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
70
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
1. Claim receivable from related party:
Whether has Balance at Current Current Balance at
Current
non-busines period-beg recovery interest period-end
Seria newly added Intere
Related party Relationship Causes s capital in (10 (10 (10 (10
l (10 thousand st rate
occupying thousand thousand thousan thousand
Yuan)
or not Yuan) Yuan) d Yuan) Yuan)
Operational
Sichuan Changhong Controlling shareholder
1 contact of No 1,454.50 63,442.63 61,409.05 - - 3,488.08
Electric Co., LTD and ultimate controller
related credit
Sichuan Changhong Operational
Controlling shareholder
2 Electronics Group contact of No 227.51 - - - - 227.51
and ultimate controller
Co., Ltd. related credit
Other enterprise control
Changhong (Hong Operational
under the same
3 Kong) Trading contact of No 11,097.59 27,291.35 20,446.52 - - 17,942.43
controlling shareholder
Company Limited related credit
and ultimate controller
Chengdu Changhong Other enterprise control
Operational
Electronic under the same
4 contact of No 530.90 - 347.38 - - 183.52
Technology Co., controlling shareholder
related credit
Ltd. and ultimate controller
Other enterprise control
Sichuan Changhong Operational
under the same
5 Minsheng Logistic contact of No 4.20 9.22 4.21 - - 9.21
controlling shareholder
Co., Ltd. related credit
and ultimate controller
Guangdong Other enterprise control Operational
6 Changhong Electric under the same contact of No 12.00 561.17 561.17 - - 12.00
Technology Co., controlling shareholder related credit
71
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
Ltd. and ultimate controller
Other enterprise control
Operational
Hefei Changhong under the same
7 contact of No 216.17 244.91 260.38 - - 200.70
Industrial Co., Ltd. controlling shareholder
related credit
and ultimate controller
Other enterprise control
Operational
Huayi Compressor under the same
8 contact of No 106.34 - 79.96 - - 26.38
Co., Ltd. controlling shareholder
related credit
and ultimate controller
Other enterprise control
Operational
081 Electronic under the same
9 contact of No 208.60 -9.94 - - - 198.66
Group Co., Ltd. controlling shareholder
related credit
and ultimate controller
Other enterprise control
Mianyang Hongfa Operational
under the same
10 Technology Co., contact of No 49.80 - -8.53 - - 58.33
controlling shareholder
Ltd. related credit
and ultimate controller
Sichuan Service Other enterprise control
Operational
Exp. Appliance under the same
11 contact of No 37.76 335.70 253.47 - - 119.99
Service Chain Co., controlling shareholder
related credit
Ltd. and ultimate controller
Other enterprise control
Sichuan Changhong Operational
under the same
12 Devices Technology contact of No 6.49 43.83 5.18 - - 45.14
controlling shareholder
Co., Ltd. related credit
and ultimate controller
Sichuan Changhong Other enterprise control Operational
13 Gerun Renewable under the same contact of No 0.19 521.61 521.80 - - 0.00
Resources Co., Ltd. controlling shareholder related credit
72
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
and ultimate controller
Other enterprise control
Sichuan Changhong Operational
under the same
14 International Hotel contact of No 405.00 -3.00 68.00 - - 334.00
controlling shareholder
Co., Ltd. related credit
and ultimate controller
Other enterprise control
Operational
Sichuan Changhong under the same
15 contact of No 29.72 2,047.60 1,432.25 - - 645.07
Jijia Fine Co., Ltd. controlling shareholder
related credit
and ultimate controller
Other enterprise control
Sichuan Changhong Operational
under the same
16 Precision Electronics contact of No 6.10 17.46 - - - 23.56
controlling shareholder
Tech. Co., Ltd. related credit
and ultimate controller
Other enterprise control
Sichuan Changhong Operational
under the same
17 Mold Plastic Tech. contact of No 37.93 6,569.57 6,588.43 - - 19.07
controlling shareholder
Co., Ltd. related credit
and ultimate controller
Other enterprise control
Sichuan Changhong Operational
under the same
18 Xinrui Technology contact of No 0.21 2,594.07 2,351.79 - - 242.48
controlling shareholder
Co., Ltd related credit
and ultimate controller
Other enterprise control
Operational
Yibing Hongxing under the same
19 contact of No 105.80 - - - - 105.80
Electronics Co., Ltd. controlling shareholder
related credit
and ultimate controller
Mianyang Lejiayi Other enterprise control Operational
20 Trading Chain Co., under the same contact of No - 122.25 122.25 - - -
Ltd. controlling shareholder related credit
73
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
and ultimate controller
Other enterprise control
Lejiayi Chain Operational
under the same
21 Management Co., contact of No - 208.61 208.61 - - -
controlling shareholder
Ltd. related credit
and ultimate controller
Other enterprise control
Guangdong Operational
under the same
22 Changhong contact of No - 100.49 100.49 - - -
controlling shareholder
Electronics Co., Ltd. related credit
and ultimate controller
Other enterprise control
Sichuan Changhong Operational
under the same
23 Package Printing contact of No - 25.00 24.76 - - 0.24
controlling shareholder
Co., Ltd. related credit
and ultimate controller
Other enterprise control
Guangyuan Operational
under the same
24 Hongcheng contact of No - 0.03 0.03 - - -
controlling shareholder
Industrial Co., Ltd. related credit
and ultimate controller
Sichuan Changhong Other enterprise control
Operational
New Energy under the same
25 contact of No - 1.53 1.53 - - -
Technology Co., controlling shareholder
related credit
Ltd. and ultimate controller
Other enterprise control
Sichuan Hongwei Operational
under the same
26 Technology Co., contact of No - 3.24 2.94 - - 0.30
controlling shareholder
Ltd. related credit
and ultimate controller
Zhongshan Other enterprise control Operational
27 Guanghong Mold under the same contact of No - 88.68 35.21 - - 53.47
Technology Co., controlling shareholder related credit
74
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
Ltd. and ultimate controller
Other enterprise control
Operational
ChanghongEuropeEl under the same
28 contact of No - 92.42 22.49 - - 69.93
ectrics.r.o controlling shareholder
related credit
and ultimate controller
Sichuan Zhiyijia Other enterprise control
Operational
Network under the same
29 contact of No - 32,533.74 26,989.77 - - 5,543.96
Technology Co., controlling shareholder
related credit
Ltd. and ultimate controller
Other enterprise control
Operational
Chengdu Changhong under the same
30 contact of No - 1.62 1.54 - - 0.08
Property Co., Ltd. controlling shareholder
related credit
and ultimate controller
Other enterprise control
Operational
BVCH Optronics under the same
31 contact of No - 7.46 7.46 - - -
(Sichuan) Co., Ltd. controlling shareholder
related credit
and ultimate controller
Sichuan Liyuan Other enterprise control
Operational
Electronic Co., Ltd. under the same
32 contact of No - 2.87 2.87 - - -
of 081 Electronic controlling shareholder
related credit
Group and ultimate controller
Other enterprise control
Anhui Xinghao Operational
under the same
33 Plasma Display contact of No - 63.00 - - - 63.00
controlling shareholder
Panels Co., Ltd. related credit
and ultimate controller
Other enterprise control Operational
Sichuan Huafeng
34 under the same contact of No - 3.66 3.66 - - -
Corp. Group
controlling shareholder related credit
75
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
and ultimate controller
- - - - - 14,536.81 136,920.77 121,844.64 - - 29,612.93
Influence on business performance and financial status of
——
the Company from related liabilities
2. Debts payable to related party:
Balance at Current Balance at
Current Current
period-begin interest period-end
newly added recovery Interest
Serial Related party Relationship Causes (10 (10 (10
(10 thousand (10 thousand rate
thousand thousand thousand
Yuan) Yuan)
Yuan) Yuan) Yuan)
Sichuan Operational
Controlling shareholder
1 Changhong contact of 2,956.40 10,282.66 9,313.19 - - 3,925.87
and ultimate controller
Electric Co., LTD related debt
Sichuan
Operational
Changhong Controlling shareholder
2 contact of 6.06 0.28 -0.13 - - 6.47
Electronics Group and ultimate controller
related debt
Co., Ltd.
Guangdong Other enterprise control
Operational
Changhong under the same
3 contact of 38.17 360.07 93.79 - - 304.45
Electronics Co., controlling shareholder
related debt
Ltd. and ultimate controller
Guangdong
Other enterprise control
Changhong Operational
under the same
4 Electric contact of 51.25 142.60 144.62 - - 49.23
controlling shareholder
Technology Co., related debt
and ultimate controller
Ltd.
76
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
Guangyuan Other enterprise control
Operational
Hongcheng under the same
5 contact of 0.03 - 0.03 - - -
Industrial Co., controlling shareholder
related debt
Ltd. and ultimate controller
Other enterprise control
Huayi Operational
under the same
6 Compressor Co., contact of 10,943.32 33,197.11 32,261.89 - - 11,878.54
controlling shareholder
Ltd. related debt
and ultimate controller
Other enterprise control
Lejiayi Chain Operational
under the same
7 Management Co., contact of 0.08 - -0.28 - - 0.36
controlling shareholder
Ltd. related debt
and ultimate controller
Sichuan Liyuan Other enterprise control
Operational
Electronic Co., under the same
8 contact of 16.88 198.52 166.48 - - 48.93
Ltd. of 081 controlling shareholder
related debt
Electronic Group and ultimate controller
Other enterprise control
Mianyang Hongfa Operational
under the same
9 Technology Co., contact of 11.30 57.65 57.65 - - 11.30
controlling shareholder
Ltd. related debt
and ultimate controller
Mianyang Other enterprise control
Operational
Hongrun under the same
10 contact of 95.86 551.52 462.96 - - 184.42
Electronic Co., controlling shareholder
related debt
Ltd. and ultimate controller
Other enterprise control
Mianyang Lejiayi Operational
under the same
11 Trading Chain contact of 12.35 - 12.26 - - 0.09
controlling shareholder
Co., Ltd. related debt
and ultimate controller
77
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
Other enterprise control
Sichuan CCO Operational
under the same
12 Display Device contact of 7.46 - - - - 7.46
controlling shareholder
Co., Ltd. related debt
and ultimate controller
Other enterprise control
Sichuan Hongwei Operational
under the same
13 Technology Co., contact of 17.75 82.36 79.35 - - 20.76
controlling shareholder
Ltd. related debt
and ultimate controller
Sichuan Hongyu Other enterprise control
Operational
Metal under the same
14 contact of 13.27 40.68 9.60 - - 44.35
Manufacture Co., controlling shareholder
related debt
Ltd. and ultimate controller
Sichuan Service Other enterprise control
Operational
Exp. Appliance under the same
15 contact of 1.10 6,712.81 5,355.82 - - 1,358.09
Service Chain controlling shareholder
related debt
Co., Ltd. and ultimate controller
Sichuan Other enterprise control
Operational
Changhong under the same
16 contact of 1,101.66 3,082.68 2,491.38 - - 1,692.96
Package Printing controlling shareholder
related debt
Co., Ltd. and ultimate controller
Other enterprise control
Sichuan Operational
under the same
17 Changhong Power contact of 3.64 - -0.22 - - 3.86
controlling shareholder
Co., Ltd. related debt
and ultimate controller
Sichuan Other enterprise control
Operational
Changhong under the same
18 contact of 892.89 2,470.94 1,445.09 - - 1,918.73
Devices controlling shareholder
related debt
Technology Co., and ultimate controller
78
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
Ltd.
Sichuan
Other enterprise control
Changhong Gerun Operational
under the same
19 Renewable contact of 26.07 - 19.04 - - 7.03
controlling shareholder
Resources Co., related debt
and ultimate controller
Ltd.
Sichuan Other enterprise control
Operational
Changhong under the same
20 contact of 0.76 - -0.20 - - 0.96
International controlling shareholder
related debt
Hotel Co., Ltd. and ultimate controller
Sichuan
Other enterprise control
Changhong Operational
under the same
21 International contact of 5.68 - -6.63 - - 12.31
controlling shareholder
Travel Agency related debt
and ultimate controller
Co., Ltd.
Other enterprise control
Sichuan Operational
under the same
22 Changhong Jijia contact of 5,378.32 11,998.01 5,480.46 - - 11,895.87
controlling shareholder
Fine Co., Ltd. related debt
and ultimate controller
Sichuan
Other enterprise control
Changhong Operational
under the same
23 Precision contact of 142.29 404.91 231.50 - - 315.70
controlling shareholder
Electronics Tech. related debt
and ultimate controller
Co., Ltd.
Sichuan Other enterprise control
Operational
Changhong under the same
24 contact of 4,401.22 19,075.74 20,090.08 - - 3,386.88
Minsheng controlling shareholder
related debt
Logistic Co., Ltd. and ultimate controller
79
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
Sichuan Other enterprise control
Operational
Changhong Mold under the same
25 contact of 6,947.48 21,120.53 15,759.59 - - 12,308.42
Plastic Tech. Co., controlling shareholder
related debt
Ltd. and ultimate controller
Sichuan
Other enterprise control
Changhong Operational
under the same
26 Xinrui contact of 1,371.02 5,095.49 6,223.15 - - 243.36
controlling shareholder
Technology Co., related debt
and ultimate controller
Ltd
Sichuan
Other enterprise control
Changhong New Operational
under the same
27 Energy contact of 11.42 44.33 37.83 - - 17.91
controlling shareholder
Technology Co., related debt
and ultimate controller
Ltd.
Sichuan
Other enterprise control
Changhong Operational
under the same
28 Lighting contact of 3.01 - 0.62 - - 2.39
controlling shareholder
Technology related debt
and ultimate controller
Co.,Ltd.
Changhong Other enterprise control
Operational
Electric under the same
29 contact of 0.55 - -0.17 - - 0.72
(Australian) Co., controlling shareholder
related debt
Ltd. and ultimate controller
Zhongshan Other enterprise control
Operational
Guanghong Mold under the same
30 contact of 0.24 - 0.24 - - -
Technology Co., controlling shareholder
related debt
Ltd. and ultimate controller
80
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
Other enterprise control
Changhong (Hong Operational
under the same
31 Kong) Trading contact of - 1.04 -7.11 - - 8.15
controlling shareholder
Company Limited related debt
and ultimate controller
Sichuan Other enterprise control
Operational
Changhong under the same
32 contact of - 38.50 38.50 - - -
Electronic System controlling shareholder
related debt
Co., Ltd. and ultimate controller
Other enterprise control
Sichuan Jiahong Operational
under the same
33 Industrial Co., contact of - 1.68 1.68 - - -
controlling shareholder
Ltd. related debt
and ultimate controller
Other enterprise control
Operational
Sichuan Hongxin under the same
34 contact of - 52.50 52.50 - - -
Software Co., Ltd. controlling shareholder
related debt
and ultimate controller
- - - - 34,457.53 115,012.60 99,814.57 - - 49,655.56
Influence on business performance and financial status
——
of the Company from related debts
For the above-mentioned statement, up to the Period-end, debts payable to related party from the Company and subordinate are amounting as
496.5556 million Yuan in total, the claim receivable from related party for the Company and subordinate amounting as 296.1293 million Yuan.
81
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
(VI) Other related transactions
□ Applicable √ Not applicable
1. The company had no other related transactions in reporting period.
2. Other related transactions from the reporting period to the disclosed date
Disclosure information for related transaction temporary disclosed
Temporary notice Dated disclosed Website for disclosure
2015-032: Resolution notice of 9th meeting of 8th
session of the Board
2015-033: Resolution notice of 7th meeting of 8th Juchao Website:
2015-8-12
session of the Board http://www.cninfo.com.cn
2015-035: Subscribe the Sichuan Hongyun New IT
Venture Capital Fund and Related Transaction
VIII. Non-business capital occupying by controlling shareholders and its related parties
□ Applicable √ Not applicable
No non-business capital occupied by controlling shareholders and its related parties in Period.
IX. Significant contract and implementations
(I) Entrust, contract and leasing
1. Entrust
□ Applicable √ Not applicable
(1) Explanation on entrust
No entrust in Period.
(2) Gains/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.
2. Contract
□ Applicable √ Not applicable
(1) Explanation on contract
82
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
No contract in Period.
(2) Gains/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.
3. Leasing
(1) Explanation on leasing
√ Applicable □Not applicable
Operational leasing of the Company please found more details in ―investment real estate‖,
―fixed assets‖, ―Lease of related party‖ and ―Rent of related party‖ in Note of Financial Statement.
(2) Gains/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) Guarantee
√ Applicable □Not applicable
In reporting period, the Company has no guarantee for any legal person or nature person
except wholly-owned and holding subsidiary, guarantee for wholly-owned and holding subsidiary
all exercise for loans or provide other credit supporting operation needs with assurance guarantee
offered. As of 30 June 2015, the Company offered credit granting to part of wholly-owned and
holding subsidiary. Except for wholly-owned subsidiary Zhongshan Changhong, other subsidiary
has no guarantee occurred actually. External guarantee and guarantee for subsidiary are as:
In 10 thousand Yuan
Particulars about the external guarantee of the Company (Barring the guarantee for subsidiaries)
Related Actual date Complet
Announce of happening Actual e Guarantee for
Name of the Company Guarantee Guarantee Guarantee
ment (Date of guarantee impleme related party (Yes
guaranteed limit type term
disclosure signing limit ntation or no)
date agreement) or not
N/A - - - - - - - -
Total approving external guarantee in report Total actual occurred external guarantee in
- -
period (A1) report period (A2)
83
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
Total approved external guarantee at the end Total actual balance of external guarantee at
- -
of report period ( A3) the end of report period (A4)
Guarantee of the Company for the subsidiaries
Complet
Name of the Related Actual date of Actual e Guarantee for
Guarantee Guarante Guarantee
Company Announcement happening (Date of guarantee impleme related party
limit e type term
guaranteed disclosure date signing agreement) limit ntation (Yes or no)
or not
2015-3-26,
Zhongke Meiling
2015-4-18, Joint
Cryogenic
No.: 2015-003, 2,000.00 - 0.00 liability - - -
Technology Co.,
No.: 2015-007, guaranty
Ltd.
No.: 2015-015
2013-3-22,
2013-6-7,
2013-10-18,
Joint
2013-11-8,
35,000.00 2013-12-4 8,000 liability 1-year Yes No
No.: 2013-012,
guaranty
No.: 2013-021,
No.: 2013-050,
Zhongshan No.: 2013-053
Changhong 2014-3-28,
Electric Co., 2014-6-6,
LTD No.: 2014-015, 2014-12-3 12,000.00
No.: 2014-019,
Joint
No.: 2014-034;
55,000.00 liability 1-year No No
2015-3-26,
2014-12-30 10,000.00 guaranty
2015-4-18,
No.: 2015-003,
No.: 2015-007, 2015-3-30 8,000.00
No.: 2015-015
2015-3-26,
Hefei Meiling
2015-4-18, Joint
Nonferrous
No.: 2015-003, 4,000.00 - 0.00 liability - - -
Metals Products
No.: 2015-007, guaranty
Co., Ltd.
No.: 2015-015
Hefei Meiling 2015-3-26,
Joint
Package 2015-4-18,
2,000.00 - 0.00 liability - - -
Products Co., No.: 2015-003,
guaranty
Ltd. No.: 2015-007,
84
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
No.: 2015-015
Total amount of approving guarantee for Total amount of actual occurred guarantee for
63,000.00 38,000.00
subsidiaries in report period (B1) subsidiaries in report period (B2)
Total amount of approved guarantee for Total balance of actual guarantee for subsidiaries
63,000.00 30,000.00
subsidiaries at the end of reporting period (B3) at the end of reporting period (B4)
Guarantee of the subsidiaries Company for the subsidiaries
Comple
Actual date of
Name of the Related Actual te Guarantee for
Guarantee happening (Date Guarantee Guarantee
Company Announcement guarantee implem related party
limit of signing type term
guaranteed disclosure date limit entation (Yes or no)
agreement)
or not
N/A - - - - - - - -
Total amount of approving guarantee for Total amount of actual occurred guarantee for
- -
subsidiaries in report period(C1) subsidiaries in report period (C2)
Total amount of approved guarantee for subsidiaries Total balance of actual guarantee for subsidiaries
- -
at the end of reporting period (C3) at the end of reporting period (C4)
Total amount of guarantee of the Company( total of three abovementioned guarantee)
Total amount of actual
Total amount of approving guarantee occurred guarantee in
63,000.00 38,000.00
in report period (A1+B1+C1) report period
(A2+B2+C2)
Total balance of actual
Total amount of approved guarantee at guarantee at the end of
63,000.00 30,000.00
the end of report period (A3+B3+C3) report period
(A4+B4+C4)
The proportion of the total amount of actually guarantee in the
8.51%
net assets of the Company (that is A4+ B4+C4)(%)
Including:
Amount of guarantee for shareholders, actual controller and its
0
related parties(D)
The debts guarantee amount provided for the guaranteed parties
30,000.00
whose assets-liability ratio exceed 70% directly or indirectly (E)
Proportion of total amount of guarantee in net assets of the
0
Company exceed 50%(F)
Total amount of the aforesaid three guarantees(D+E+F) 30,000.00
Explanations on possibly bearing joint and several liquidating
——
responsibilities for undue guarantees (if applicable)
Explanations on external guarantee against regulated procedures
——
(if applicable)
The above guarantees are all wholly-owned and holding subsidiaries of the Company.
85
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
Production and operation of these wholly-owned and holding subsidiaries was normal with no
overdue unpaid loans and guarantee risk is controllable. During the reporting period, the highest
level of security the Company provided amounted to 630,000,000 Yuan; the actual amount of
guarantee is 380,000,000 Yuan. At the end of the reporting period, the practical guarantee amounted
to 300,000,000 Yuan, accounting for the Company’s latest net assets ratio of 8.51%,
Explanation on guarantee with composite way
□ Applicable √ Not applicable
Guarantee outside against the regulation
□ Applicable √ Not applicable
No guarantee outside against the regulation in Period.
(III) Other significant contract
□Applicable √ Not applicable
No other significant contract in Period.
(IV) Other significant transaction
□Applicable √ Not applicable
No other significant transaction in Period.
X. Commitments from the Company or shareholder with over 5% share held in reporting
period or occurred in prior period but continues to reporting period
√ Applicable □Not applicable
86
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
Impleme
Commitment Acceptor Content Date Term
ntation
1. The acquirer shall not engage in refrigerator business or activity
which competes or will compete with business of Meiling Strictly
Valid for long
Electrical Appliances Co., Ltd. (hereinafter referred to as the implemen
term
―Meiling Electrical Appliances‖),or that which has interest conflict ted
with Meiling Electrical Appliances.
About committed and
Sichuan 2. The acquirer promises to apply shareholders’ right on a legal and Strictly
promised in order to Valid for long
Changhong reasonable manner and shall not take any action to limit or affect implemen
prevent horizontal term
Commitments made in Electric Co., the normal operation of Meiling Electrical Appliances. ted
competition in the
acquisition report or LTD (hereinafter 2007-6-12
Acquisition Report of 3. For any opportunity to engage in competing business, the
equity change report referred to as the
Hefei Meiling Co., acquirer will advise Meiling Electrical Appliances in written for
―Sichuan engaging such business or not. If Meiling Electrical Appliances
Ltd.
Changhong‖) gives no clear written reply as to whether engaging the competing Strictly
Valid for long
business or not within 20 days after receipt of the aforesaid letter, it implemen
term
shall be deemed that it will not engage in such business. The ted
acquirer will only engage in non-competing business provided that
Meiling Electrical Appliances confirms not to or is deemed to not
engage in such non-competing business.
Commitment 1. It will not engage in such business or activity that competes with
Commitment made Strictly
Sichuan regarding to reducing or has interest conflict with that of Meiling Electrical Appliances Valid for long
during the non-public 2010-6-24 implemen
Changhong and preventing except for the action taken for sake of Meiling Electrical term
offer ted
competition with Appliances as required by Meiling Electrical Appliances.
87
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
Meiling Electrical 2. The Company promises to apply shareholders’ right on a legal
Appliances and reasonable manner and shall not take any action to limit or
affect the normal operation of Meiling Electrical Appliances.
3. In case that Meiling Electrical Appliances expects, on the basis
of its existing business, to expand its operation scope into the
business which the Company has already operated, the Company
agrees to grant pre emptive right to Meiling Electrical Appliances
regarding such business if the same conditions are met, provided
that the Company is still the controlling shareholder or actual
controller of Meiling Electrical Appliances.
1. Measures will be adopted to prevent continued related
transaction with Meiling Electrical Appliances: as to the related
transaction that can not be prevented, it will sign related transaction
agreement with Meiling Electrical Appliances under the market
Commitment principles of ―equally paid and mutual benefit‖, and fairly
regarding to reducing determined the transaction price according to the market prevailing
Strictly
and standardizing standards. Valid for long
2010-6-24 implemen
related transaction term
2. Perform the necessary obligations to make related directors and ted
with Meiling
related shareholder abstain from voting according to relevant
Electrical Appliances
regulation, and observe legal procedure for approving related
transaction and information disclosure obligations.
3. Promise not to hurt legal interests of Meiling Electrical
Appliances and other shareholders through related transaction.
88
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
Commit to authorized Changhong Air Conditioning and Zhongshan Air Conditioning Co., Strictly
Valid for long
Ltd. (hereinafter referred to as the ―Zhongshan Air Conditioning‖) to use ―Changhong‖ 2010-11-6 implemen
term
trademark and relevant patents for free. ted
1. Commit to disclose periodic reports on a truthful, accurate, complete, fair and prompt
manner, to disclose all the information that have important influences over investors, to
accept supervision under the CSRC and Shenzhen Stock Exchange.
2. Commit to make public clarification in respect of such information that is released from
any public media and may result in misleading influences on stock price once the
Company is aware of such information. Strictly
Valid for long
The Company 3. The directors, supervisors, senior management and core technicians of the Company 2011-1-7 implemen
term
will accept opinions and criticism from the social publics, and they will not trade the ted
Company’s securities, directly or indirectly, with any inside information and other illegal
methods. The Company promises that the documents submitted to Shenzhen Stock
Exchange exist no false statement or material omission, and no relevant information will
be disclosed during the application for listing without prior content from Shenzhen Stock
Exchange.
1. Since the property transfer didn’t involve the buildings and land currently used by
Strictly
Commitment made in Changhong Air Conditioning, Sichuan Changhong commits, upon the completion of Valid for long
implemen
transfer of air Sichuan equity transfer, to continue to lease such assets to Changhong Air Conditioning at market term
2009-12-10 ted
conditioning assets Changhong price.
property 2. After completion of this property transfer, Sichuan Changhong commits to manage to Strictly
Valid for long
prevent new related transaction with Meiling Electrical Appliances. For those which can implemen
89
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
not be prevented, Sichuan Changhong commits to determine the transaction price based term ted
on market accepted methods, so as to ensure fairness of related transaction and protection
of the interest of Meiling Electrical Appliances.
3. Sichuan Changhong commits that it will not engage in air conditioning and refrigerator
business or activity which competes or will compete with business of Meiling Electrical
Appliances, or that which has interest conflict with Meiling Electrical Appliances.
1. Make promise not to reduce the shares of Meiling bought in every year during
implementation of the performance incentive fund via any market ways in the later first Three years after
2013-8-152 Impleme
year, which was allowed to be reduced by 50% according to the laws and regulations in current shares
014-7-3 nting
the second year, and the remaining 50% was allowed to be reduced in the third year in purchased
Commitments by
Some of the accordance with the laws and regulations.
Annual performance
Directors, From the date
incentive fund,
supervisors and 2. The directors, supervisors and senior management promised to manage in accordance when annual
incentive objects
senior with the relevant management approaches in accordance with the "Company Law", incentive fund
while purchasing
executives of the "Securities Law" and "The Company’s shares held by the directors, supervisors and senior plan deliberated
stock of the Company
Company as management of the listed company and its change management rules", as objects of and approved by
with performance 2013-8-15 Impleme
well as other annual performance incentive fund of Meiling, including but not limited to: during his general meeting to
incentive funds and 2014-7-3 nting
incentive objects tenure, the shares transferred each year shall not exceed 25% of the total number of shares 6 moths after
owned fund
held of the Company; shall not sell the shares of the Company within six months after director,
bought it or purchase again six months after sold it; shall not transfer the shares held supervisor and
within six months after Dismission. senior executives
resigned
Sichuan 1. Sichuan Changhong and its concert party Changhong (Hong Kong) Trade Co., Ltd.
Commitments of not Impleme
Changhong undertook not to reduce holding shares of ―Meiling Appliances‖ and ―Wanmeiling B‖ 2015-7-9 2016-1-9
to reducing the shares nting
Electric Co., during the future six months commencing from the date on which Meiling Appliances
90
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
LTD and persons released relevant announcement (9 July 2015-9 January 2016), so as to maintain stable
acting in concert market and protect investors’ interest with their actual activities;
Changhong
(Hong Kong) 2. Based on market conditions and as allowed by laws and rules, multiple measures were
Trading adopted adequately to increase shareholding of Meiling Appliances, so as to demonstrate
Company its firm confidence on the PRC economy and Meiling Appliances with its actual actions,
Limited maintain sound development of capital market and promote recovery of healthy market;
3. The Company continued to support operation and development of listed company. It is
committed to bringing steady and real return to investors.
Perform the commitment promptly or
√ Yes □ No
not
Specific reason
for non-performance and the next Non-applicable
plan
91
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
XI. 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
XII. Penalty and rectification
□ Applicable √ Not applicable
No penalty or rectification in Period.
XIII. Risk disclosure of delisting with laws and rules violated
□Applicable √ Not applicable
The Company has no delisting risks with laws and rules violated in Period.
XIV. Other significant issues
√ Applicable □Not applicable
(I)the Company received the Notice from the second largest shareholder Hefei Xingtai
Holdings Group Co., Ltd. (hereinafter referred to as ―Xingtai Holdings‖) on 6 March 2015.
According to the overall arrangement for state-owned enterprises reform of Hefei province,
adjustments were made to Hefei state-participated operating organs. It is planned to transfer the
49,477,513 state-owned shares of the Company held by Xingtai Holdings to Hefei Industrial
Investment Holdings Group CO., Ltd. to be established for free. Till now, the above equity
adjustment is in the process of performing relevant approval procedure. Details have been disclosed
by the Company by way of announcement (No. 2015-001) on the designated information disclosure
media including Securities Times, China Securities, Hong Kong Commercial Daily and Juchao
Information Website (www.cninfo.com.cn) on 7 March 2015.
(II) As approved by resolutions at the 6th meeting of the 8th session of the Board held on 24
March 2015, Zhongke Meiling is approved to carry out the relocation and capacity expansion with
investment of approximately RMB 156.3219 million, after completion, Zhongke Meiling will has
the capacity ability of 26,000 cryogenic refrigerators in one year. Details have been disclosed by the
Company by way of announcements (No. 2015-003) on the designated information disclosure
media including Securities Times, China Securities, Hong Kong Commercial Daily and Juchao
Information Website (www.cninfo.com.cn) on 26 March 2015.
(III) As approved by resolutions at the 6th meeting of the 8th session of the Board held on 24
March 2015, Mr. Wu Dinggang and Mr. Zhang Xiaolong are approved to appoint as the deputy
president and deputy president as well as the CFO of the Company respectively. Details have been
92
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
disclosed by the Company by way of announcements (No. 2015-003) on the designated information
disclosure media including Securities Times, China Securities, Hong Kong Commercial Daily and
Juchao Information Website (www.cninfo.com.cn) on 26 March 2015.
(IV) In light of the serial accounting rules that have revised and issued by ministry of finance
in 2014, as approved by resolutions at the 6th meeting of the 8th session of the Board held on 24
March 2015 and 17 April, according to relevant regulations and requriement, the Company is
approved to carried out the new enterprise accounting rules for corresponding accounting policy
changed in line with the relevant regulations and rules. Details have been disclosed by the Company
by way of announcements (No. 2015-003, No.2015-008, No.2015-015) on the designated
information disclosure media including Securities Times, China Securities, Hong Kong Commercial
Daily and Juchao Information Website (www.cninfo.com.cn) on 26 March 2015 and 18 April 2015
respectively.
(V)As approved by resolutions at the 6th meeting of the 8th session of the Board and 2014
annual general meeting held on 24 March and 17 April 2015 respectively, the Company is approved
to make foreign exchange forward deals from 1 January 2015 to 30 June 2016, with deal balance
not exceeding USD350 million and the maximum settlement period for single deal not exceeding
two years. Details have been disclosed by the Company by way of announcements (No. 2015-003,
2015-010, 2015-015) on the designated information disclosure media including Securities Times,
China Securities, Hong Kong Commercial Daily and Juchao Information Website
(www.cninfo.com.cn) on 26 March 2015 and 18 April 2015.
(VI) As approved by resolutions at the 6th meeting of the 8th session of the Board and 2014
annual general meeting held on 24 March and 17 April 2015 respectively, the Company is
authorized to invest in low-risk guaranteed floating income banking financing products featuring
with high level of safety, liquidity, matured within one year, guaranteed with agreement and due
repayment and payment of principal and interests with its own unoccupied capital not more than
RMB1 billion, provided that such investment would not affect capital needs for normal operation
and investment risks are under effective control. And the investment period shall be one year.
Meanwhile, the Company has established Financing Products Investment Management Policy.
Details have been disclosed by the Company by way of announcements (No. 2015-003, 2015-011,
2015-015) on the designated information disclosure media including Securities Times, China
Securities, Hong Kong Commercial Daily and Juchao Information Website (www.cninfo.com.cn)
on 26 March 2015 and 18 April 2015.
(VII) As democratic elections in the congress of workers and staff held on 8 April 2015, Mr.
Zhu Wenjie is approved to increased in the 8th session of the supervisory committee as staff
supervisor, and servers as the term as 8th session of the supervisory committee. Details have been
disclosed by the Company by way of announcements (No. 2015-014) on the designated information
disclosure media including Securities Times, China Securities, Hong Kong Commercial Daily and
Juchao Information Website (www.cninfo.com.cn) on 10 April 2015.
(VIII)On 17 April 2015, the 8th session of the Board held its 7th meeting to consider and
93
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
approve the proposal on joint venture incorporation by its subsidiary Sichuan Changhong Air
Conditioner Company Limited and Hengyouyuan Science and Technology Development Group
Company Limited. Taking into account the operation needs of its subsidiary Sichuan Changhong
Air Conditioner Company Limited (hereinafter referred to as ―Changhong Air Conditioner‖), it is
agreed for Changhong Air Conditioner to incorporate manufacture joint venture and sales joint
venture with Hengyouyuan Science and Technology Development Group Company Limited
(hereinafter referred to as ―Hengyouyuan Group‖, a subsidiary of China Ground Source Energy
Industry Group Limited (stock code: 8128.HK)) with its own capital of RMB50 million, aiming to
cooperation for the ―ground source cold and heat integrity project‖ and promote industrialization of
this project and carry out research, development, production and sales of related products.
The joint venture manufacturing enterprise Hongyuan Dineng Heat Pump Technology Co., Ltd.
has the registered capital of RMB 50 million, including RMB 25.5 million contributed by
Changhong AC in cash, representing 51% of the register capital; Ever Source Technology
Development contribute RMB 24.5 million in cash, representing 49% of the registered capital. The
joint venture sales enterprise Hongyuan Dineng Rebao Technology Co., LTd. has registered capital
of RMB 50 million, including RMB 25.5 million invested by Ever Source Technology Development,
a 51% in registered capital while RMB 24.5 million contributed by Changhong AC, a 49% in
registered capital.
Details have been disclosed by the Company by way of announcement (No. 2015-016) on the
designated information disclosure media including Securities Times, China Securities, Hong Kong
Commercial Daily and Juchao Information Website (www.cninfo.com.cn) on 18 April 2015.
(IX)On 20 May 2015, the Company entered into a collection financing plan agreement named
―Fortune. Stable Profit ―with Anhui province branch of Bank of Communications, pursuant to
which, the Company subscribed the ―Fortune. Stable Profit ―financing products featuring with
guaranteed floating income launched by Anhui province branch of Bank of Communications with
its own unoccupied capital of RMB100 million. Details have been disclosed by the Company by
way of announcement (No. 2015-019) on the designated information disclosure media including
Securities Times, China Securities, Hong Kong Commercial Daily and Juchao Information Website
(www.cninfo.com.cn) on 22 May 2015.
(X)Three shareholders of the Company holding lock-up shares including Hefei Mingzhu
branch of China Agriculture Bank, Tan Zuzheng and Xiong Xueqin have respectively entrusted the
Board to apply to Shenzhen Stock Exchange and China Securities Depository Clearing Company
Shenzhen Branch for advancement of consideration repayment, which has been completed on 29
May 2015. The three shareholders repaid in aggregate 375,295 shares to Meiling Group as
consideration shares and their interest allocation, accounting for 0.0491% of the total share capital
94
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
of the Company. On 31 July 2015, the lock-up shares held by the three shareholders will be released
for sale and total to 2,085,091 shares, accounting for 0.2730% of the total share capital of the
Company. Details have been disclosed by the Company by way of announcements (No. 2015-020,
2015-030) on the designated information disclosure media including Securities Times, China
Securities, Hong Kong Commercial Daily and Juchao Information Website (www.cninfo.com.cn)
on 22 May 2015 and 29 July 2015.
(XI)Considering its operation and production needs and in order to cater to development trend
of refrigerator products and satisfy its capacity requirement for large-sized refrigerator products in
future years, as approved by resolutions at the 8th meeting of the 8th session of the Board held on 3
July 2015, the Company was approved to make technical reform on refrigerator production line
with its own capital of RMB28 million, so as to improve its production capacity and efficiency in
terms of large sized refrigerators and satisfy quality requirements. Details have been disclosed by
the Company by way of announcement (No. 2015-022) on the designated information disclosure
media including Securities Times, China Securities, Hong Kong Commercial Daily and Juchao
Information Website (www.cninfo.com.cn) on 4 July 2015.
(XII) The Company held the 8th meeting of 8th session of the Board on 3 July 2015, and
deliberated and approved the proposal of securities affairs representative engagement, Mr. Zhu
Wenjie is approved to serves as the securities affairs representative of the Company and assist the
secretary of the board for performance implementation, the terms are from the date when the
deliberation approved to the end of the board session. Details have been disclosed by the Company
by way of announcement (No. 2015-022, No.2015-024) on the designated information disclosure
media including Securities Times, China Securities, Hong Kong Commercial Daily and Juchao
Information Website (www.cninfo.com.cn) on 4 July 2015.
(XIII) Implementation for annual performance incentive fund
On August 9, 2012 and August 28, 2012, the Company considers the adoption of "Hefei
Meiling annual performance incentive fund implementation plan" (hereinafter referred to as ""
stimulus "") on the 16th meeting of the 7th board of directors and the 2012-second provisional
shareholders meeting. Details were disclosed on information disclosure media appointed by the
Company as "Securities Times", "Chinese Securities Daily", "Hong Kong Commercial Daily" and
the Juchao network (www.cninfo.com.cn) on August 10, 2012 and August 29th in the form of
announcement (2012-028, 2012-035).
1. Implementation about 2012 performance incentive fund provision and distribution plan
Found more in ―1. Accrual of the Performance incentive fund for year of 2012 and distribution
plan implementation‖ of ―(XII) implementation of the annual performance incentive fund‖ carried
in ―XIV.Other Important events‖ of the Section V. Important Events in the Annual Report of 2014
95
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
published on 26 March 2015
During the reporting period, the directors, supervisors and senior management as grantees of
the 2012 incentive plan did not reduce holding of their shares bought by them with 2012
performance incentive funds and own capital. Other grantees of the 2012 incentive plan (not being
directors, supervisors and senior management) have reduced holding of 1,438,754 in aggregate,
accounting for 0.1884% of the total share capital, since September 2014 to the end of the reporting
period.
2. Implementation of 2013 annual performance incentive provision and distribution program
For details, please refer to the 2014 annual report disclosed by the Company on 26 March 2015
under section V ―Significant Issues‖ under ―XIV Explanation for other significant issues‖ under
―(XII) Implementation of annual performance incentive funds‖ under 2. ―Provision for and
allocation plan for 2013 annual performance incentive funds‖.
According to the stipulation under Incentive Plan and their commitments, the grantees shall not
reduce holding of shares within one year upon acquisition of their shares with 2013 performance
incentive funds and own capital, and are allowed to reduce holding of 50% under laws and rules in
the second year, and the remaining 50% in the third year. As at the end of the reporting period, the
aforesaid holding lasts for less than one year. In addition, as for such grantees under 2013
performance incentive plan serving as directors, supervisors and senior management, their holding
and movement thereof shall comply with Company Law, Securities Law and Management Rules on
Holding Shares of the Company and Movement thereof by Directors, Supervisors and Senior
Management of Listed Issuer. Certain directors, supervisors and senior management acquired our
Shares with 2013 performance incentive funds granted to them and their own capital. According to
relevant laws and regulations, shares of the Company held by them are not allowed to sell within six
months upon acquisition. Any gains arising from illegal sale will be vested to the Company.
Therefore, shares bought by the grantees successively during August to November 2014 have been
held for less than one year till disclosure date of this report, and all the shares acquired by the
grantees are locked up according to their commitments, and acquisition of shares by certain
directors, supervisors and senior management has been disclosed on the designated information
disclosure media between 19 August to 15 November 2014.
3. Ended as 30 June 2015, shares hold by all incentive objects amounting to 8,416,428 shares,
a 1.1020% in total share capital of the Company, including 7,530,436 A-share, a 0.9860% in total
share capital and 885,992 B-share, a 0.1160 in total share capital of the Company.
4. Implementation of 2014 annual performance incentive provision and distribution program
According to the "incentive plan" the Company has approved, the operating results (audited in
96
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
2014) and the actual operation situation, the annual performance incentive fund has reached the
awarded conditions. Being recognized by the Board, benefited directors and supervisors withdraw
from voting, the "2014 Annual Performance Incentive Fund Provision‖ was deliberated and
approved in 6th meeting of the 8th session of the board, 4th meeting of 8th session of supervisory
committee and general meeting of 2015 dated March 24, 2015 and April 28. And, being recognized
by the Board, benefited directors and supervisors withdraw from voting, the "2014 Annual
Performance Incentive Fund Allocation Scheme‖ was deliberated and approved in 8th meeting of the
8th session of the board, 6th meeting of 8th session of supervisory committee and first extraordinary
general meeting of 2015 dated July 3, 2015 and July 21. More details are:
(1) Incentive range and number: 44 people compliance with the conditions of the incentive
objects (senior management, middle management, and core technology and business personnel).
(2) Capital resources: in line with the RMB 32.1867 million for incentive fund from 10% of
net profit attributable to shareholder of listed company that audited for year of 2014; RMB 24.78
million has been distributed to 44 incentive objects (senior managers, middle management, and core
technology and business personnel) that satisfied the laws, regulations and ―Incentive Plan‖. All the
incentive objects will, purchase stock of the Company in open market with all incentive funds
(income tax excluded) obtained plus no less favorable than 30 percent of the total annual
remuneration (except for performance fund; total annual remuneration after relevant tax cut and
five-insurance payment paid).
(3) Share holding: According to the "incentive plan" the company have approved, and under
the premise of the Listing Rules of Shenzhen Stock Exchange and other applicable Chinese laws
and regulations, incentive target promised within 60 working days as of receipt of the performance
incentive funds (In case of regulatory ruled the trading of shares shall not be specified, the time
extended), to purchase the Company's shares through the open market. The incentive plan was in
the implementation up to the disclosure date.
(4) As for change of shareholding arising from disposal of shares by the grantees: The
incentive plan was in the implementation up to the disclosure date, and with the foregoing.
(5)Commitment for restricted sales:
According to the Implementation Program of the Annual Performance Incentive Capital of
Hefei Meiling Co., Ltd and the commitment made by all the grantees, grantees can not reduce
shareholding by any market means in respect of the Company’s shares purchased by them within
one year upon the date of purchase; 50% of the shares can be reduced for holding in the second year
97
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
according to applicable laws and rules; and the remaining 50% can be reduced for holding in the
third year according to applicable laws and rules. In addition, certain grantees who are also directors,
supervisors or senior management of the Company undertook that they would watch out their
behaviors in compliance with relevant requirements of the Company Law, Securities Law and
Management Rules on Holding Shares of the Company or Change thereof by Director, Supervisor
and Senior Management of Listed Issuer, including but not limited to: shares transferred annually
by them shall not exceed 25% of the total shares held in the Company during their terms of office;
they are not allowed to sell the shares held in the Company within six month upon purchase or to
buy back the shares within six month upon disposal; they are not allowed to transfer the shares held
in the Company within a half year upon their resignation.
Details were disclosed on information disclosure media appointed by the Company as
"Securities Times", "Chinese Securities Daily", "Hong Kong Commercial Daily" and the Juchao
website (www.cninfo.com.cn) respectively dated 17 June2012, 4 July 2014, 12 August 2014, 19
August 2014, 27 August 2014, 28 August 2014, 17 September 2014, 18 October 2014, 24 October
2014, 4 November 2014, 6 November 2014, 8 November 2014, 12 November 2014, 15 November
2014, 26 March 2015, 18 April 2015, 4 July 2015 and 22 July 2015 in the form of announcement
(No.: 2014-036, No.: 2014-037, No.: 2014-040, No.: 2014-046, No.: 2014-055, No.: 2014-056, No.:
2014-057, No.: 2014-060, No.: 2014-063, No.: 2014-066, No.: 2014-068, No.: 2014-069, No.:
2014-070, No.: 2014-072 and No.: 2014-073) as well as the Semi-annual report of 2014 and 3Q
report of 2014, Annual 2014, No.:2015-003, No.:2015-004, No.:2015-009, No.:2015-015,
No.:2015-022, No.:2015-023, No.:2015-025, No.:2015-029.
98
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
Section VI. Changes in Shares and Particulars about Shareholders
I. Changes in Share Capital
Before the Change Increase/Decrease in the Change (+, -) After the Change
Capital
New ization
Proporti Bonus Proporti
Amount shares of Others Subtotal Amount
on (%) shares on (%)
issued public
reserve
I. Restricted shares 10,658,357 1.40% - - - -1 -1 10,658,356 1.40%
1. State-owned shares - - - - - - - - -
2. State-owned legal
540,692 0.07% - - - +375,295 +375,295 915,987 0.12%
person’s shares
3. Other domestic
9,453,171 1.24% - - - -375,296 -375,296 9,077,875 1.19%
shares
Including: domestic
7,052,279 0.92% - - - -337,596 -337,596 6,714,683 0.88%
legal person’s shares
Domestic natural
2,400,892 0.32% - - - -37,700 -37,700 2,363,192 0.31%
person’s shares
4. Foreign shares 664,494 0.09% - - - - - 664,494 0.09%
Including: Foreign
- - - - - -
legal person’s shares
Foreign natural
664,494 0.09% - - - - - 664,494 0.09%
person’s shares
II. Unrestricted shares 753,080,848 98.60% - - - +1 +1 753,080,849 98.60%
1. RMB Ordinary
590,881,342 77.36% - - - +1 +1 590,881,343 77.36%
shares
2. Domestically listed
162,199,506 21.24% - - - - - 162,199,506 21.24%
foreign shares
3. Overseas listed
- - - - - - - - -
foreign shares
4. Others - - - - - - - - -
III. Total shares 763,739,205 100.00% - - - - - 763,739,205 100.00%
Note: data of the ratios have rounded up to two digits after the decimal point, increased/decreased ―1 share‖
refers to the difference, data is provided by the Shenzhen Branch of China Securities Depository and Clearing Co.,
Ltd.
99
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
(I) Reasons for share changed
√ Applicable □Not applicable
On 29 May 2015, the price of shares and distribution equity paid in advance by Meiling Group
on behalf of the three restricted shareholders in the stock rights splitting reform have been paid by
the three restricted shareholders, shares amounting to 375,295 shares, a 0.0491% in total share
capital of the Company
(II) Approval of share changed
□ Applicable √ Not applicable
(III) Ownership transfer of share changed
□ Applicable √ Not applicable
(IV) 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
(V) Other information necessary to disclose for the Company or need to disclosed under
requirement from security regulators
□ Applicable √ Not applicable
(VI) Explanation on changes of total shares, shareholders structure and assets & liability
structures
□ Applicable √ Not applicable
II. Amount of shareholders of the Company and particulars about shares holding
Unit: share
Total preference shareholders with
Total common shareholders in reporting
65,613 voting rights recovered at end of N/A
period-end
reporting period (if applicable)
Particulars about shares held above 5% by common shareholders or top 10 common shares holding
Number of
Amount of share
Total common Amount of
restricted pledged/froz
Proportion shareholders Changes in un-restricted
Nature of en
Full name of Shareholders of shares common
shareholder
held (%) at the end of report period
shares
common
State
report period shares held Amou
held of
nt
share
Sichuan Changhong Electric State-owned
21.58% 164,828,330 0 0 164,828,330 - -
Co., LTD legal person
Hefei Xingtai Holding Group State-owned
6.26% 47,823,401 0 0 47,823,401 - -
Co., Ltd. legal person
100
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
Changhong (Hong Kong) Foreign legal
3.30% 25,165,823 0 0 25,165,823 - -
Trading Company Limited person
Zhengde life insurance Co., Domestic non
LTD-universal insurance state-owned 3.15% 24,021,690 0 0 24,021,690 - -
products corporate
Foreign natural
CAO SHENGCHUN 1.75% 13,349,015 136,459 0 13,349,015 - -
person
Foreign legal
UBS AG 0.98% 7,469,912 7,469,912 0 7,469,912 - -
person
DEUTSCHE BANK Foreign legal
0.89% 6,765,136 6,765,136 0 6,765,136 - -
AKTIENGESELLSCHAFT person
Foreign legal
NORGES BANK 0.55% 4,216,432 0 0 4,216,432 - -
person
Foreign natural
Long Qinfang 0.42% 3,232,597 32,000 0 3,232,597 - -
person
DRAGON BILLION CHINA Foreign legal
0.39% 3,002,517 -2,326,972 0 3,002,517 - -
MASTER FUND person
Strategy investors or general legal person
becomes top 10 shareholders due to rights issued Not applicable
(if applicable)
Among the above shareholders, Changhong (Hong Kong) Trade Co., Ltd. is the
wholly-owned subsidiary of Sichuan Changhong Electronic Co., Ltd.; there
existed no associated relationship or belong to the concerted actors as specified in
the Measures for the Administration of Information Disclosure of Shareholder
Equity Changes of Listed Companies among Sichuan Changhong Electronic Co.,
Explanation on associated relationship among the Ltd., Changhong (Hong Kong) Trade Co., Ltd. and other top 8 shareholders; and
aforesaid shareholders
top ten shareholders with unrestricted subscription; as the Company has not
known whether there exists any business relationship among the other
shareholders with unrestricted subscription or they belong to the concerted actors
as specified in the Measures for the Administration of Information Disclosure of
Shareholder Equity Changes of Listed Companies.
Particular about top ten common shareholders with un-restrict shares held
Amount of unrestricted Type of shares
Shareholders’ name common shares held at
Type Amount
reporting period-end
Sichuan Changhong Electric Co., LTD 164,828,330 RMB ordinary shares 164,828,330
Hefei Xingtai Holding Group Co., Ltd. 47,823,401 RMB ordinary shares 47,823,401
Domestically listed foreign
Changhong (Hong Kong) Trading Company Limited 25,165,823 25,165,823
shares
Zhengde life insurance Co., LTD-universal insurance 24,021,690 RMB ordinary shares 24,021,690
101
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
products
CAO SHENGCHUN 13,349,015 RMB ordinary shares 13,349,015
Domestically listed foreign
UBS AG 7,469,912 7,469,912
shares
Domestically listed foreign
DEUTSCHE BANK AKTIENGESELLSCHAFT 6,765,136 6,765,136
shares
NORGES BANK 4,216,432 RMB ordinary shares 4,216,432
Domestically listed foreign
Long Qinfang 3,232,597 3,232,597
shares
Domestically listed foreign
DRAGON BILLION CHINA MASTER FUND 3,002,517 3,002,517
shares
Among the above shareholders, Changhong (Hong Kong) Trade Co., Ltd. is the
wholly-owned subsidiary of Sichuan Changhong Electronic Co., Ltd.; there
existed no associated relationship or belong to the concerted actors as specified in
Expiation on associated relationship or consistent the Measures for the Administration of Information Disclosure of Shareholder
actors within the top 10 un-restrict common Equity Changes of Listed Companies among Sichuan Changhong Electronic Co.,
shareholders and between top 10 un-restrict Ltd., Changhong (Hong Kong) and other top 8 shareholders; and top ten
common shareholders and top 10 common shareholders with unrestricted subscription; as the Company has not known
shareholders whether there exists any business relationship among the other shareholders with
unrestricted subscription or they belong to the concerted actors as specified in the
Measures for the Administration of Information Disclosure of Shareholder Equity
Changes of Listed Companies.
Explanation on shareholders involving margin
business among the top ten shareholder (if -
applicable)
Agree to buy-back dealings occurred in Period by top 10 common shareholders and top 10
common shareholders with shares restricted for sale
□Yes √No
No agree to buy-back dealings occurred in Period by top 10 common shareholders and top 10
common shareholders with shares restricted for sale
III. Shareholder and actual controller
(I)Changes of controlling shareholder in reporting period
□Applicable √Not applicable
No change of controlling shareholder in reporting period.
(II)Changes of actual controller in reporting period
□Applicable √Not applicable
No changes of actual controller in reporting period
102
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
Pursuant to the document relating to furthering reform and accelerating transformation of
Sichuan Changhong Electronics Group Company as principally approved by people’s government
of Sichuan, Sichuan Changhong Electronics Group Company is in the process of propelling reforms.
Pursuant to the document relating to approval of the articles of association of Sichuan Changhong
Electronics Holding Group Company issued by SASAC office in Mianyang, on 2 June 2015, as
approved by Mianyang Industry and Commercial Administration, Sichuan Changhong Electronics
Group Company (the parent company of Sichuan Changhong which is our controlling shareholder)
changed its name to ―Sichuan Changhong Electronics Holding Group Company Limited‖ from
―Sichuan Changhong Electronics Group Company Limited‖.
IV. Share holding increasing plan proposed or implemented in reporting period from
shareholder of the Company and its concerted action person
√ Applicable □ Not applicable
According to the notice relating to increasing holding shares of the Company by the substantial
shareholder and directors, supervisors and senior management (ZJF[2015]51) issued by the CSRC,
the Company received the letter from its largest shareholder Sichuan Changhong dated 8 July 2015
on commitment on not reducing shareholdings in Meiling Appliances for the future six months, the
major contents of which are set below:
Recently, securities market experienced irrational fluctuation, which negatively affected
investors’ interests and development of the listed company. Listed issuer, controlling shareholders
and investors bear not merely interests, but also responsibilities together. Based on its solid
confidence on future performance of Meiling Appliances, Sichuan Changhong commits as follows
to maintain market expectation and shareholders’ interests:
1. Sichuan Changhong and its concert party Changhong (Hong Kong) Trade Co., Ltd.
undertook not to reduce holding shares of ―Meiling Appliances‖ and ―Wanmeiling B‖ during the
future six months commencing from the date on which Meiling Appliances released relevant
announcement (9 July 2015-9 January 2016), so as to maintain stable market and protect investors’
interest with their actual activities;
2. Based on market conditions and as allowed by laws and rules, multiple measures were
adopted adequately to increase shareholding of Meiling Appliances, so as to demonstrate its firm
confidence on the PRC economy and Meiling Appliances with its actual actions, maintain sound
development of capital market and promote recovery of healthy market;
3. The Company continued to support operation and development of listed company. It is
committed to bringing steady and real return to investors.
103
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
Section VII. Preferred Stock
□ Applicable √ Not applicable
The Company had no preferred stock in the reporting.
104
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
Section VIII Particular about Directors, Supervisors, Senior
Executives and Employees
I. Changes of shares held by directors, supervisors and senior executive
□Applicable √Not applicable
Shares held by directors, supervisors and senior executive of the Company had no changes,
more details can be seen in Annual Report 2014.
II. Changes of directors, supervisors and senior executive
√ Applicable □Not applicable
Name Title Type Date Reasons
Agreed to appointed Mr. Wu Dinggang as the deputy president
Wu Deputy
Engaged 2015-3-24 of the Company by approved in 6th meeting of 8th session of the
Dinggang president
Board
Deputy
Agreed to appointed Mr. Zhang Xiaolong as the deputy president
Zhang president and
Engaged 2015-3-24 and CFO of the Company by approved in 6th meeting of 8th
Xiaolong Finance
session of the Board
Manager
Zhang Office Resign the staff supervisor of the 8th session of supervisory
Supervisor 2015-4-8
Ruhe leaving committee due to personal reasons
Agreed to appointed Mr. Zhu Wenjie as the staff supervisor of 8th
Zhu
Supervisor Be elected 2015-4-8 session of supervisory committee by democratic election in
Wenjie
congress of workers and staff
105
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
Section IX. Financial Report
I. Audit reports
Whether the semi-annual report was audited or not
□ Yes √ No
II. Financial statements
Units in Notes of Financial Statements is RMB
1. Consolidated Balance Sheet
Prepared by Hefei Meiling Co., Ltd.
2015-06-30
In RMB
Items Balance at period-end Balance at period-begin
Current assets:
Monetary funds 2,797,826,595.72 2,665,219,013.80
Settlement provisions
Capital lent
Financial liability measured by
fair value and with variation 3,572,100.00
reckoned into current gains/losses
Derivative financial liability
Notes receivable 1,786,165,001.95 1,223,468,044.05
Accounts receivable 1,993,308,900.76 1,160,192,277.00
Accounts paid in advance 102,516,378.74 92,501,704.06
Insurance receivable
Reinsurance receivables
Contract reserve of
reinsurance receivable
Interest receivable 582,870.63
Dividend receivable
Other receivables 39,765,529.55 28,729,328.80
Purchase restituted finance
asset
Inventories 1,547,574,776.02 1,765,761,407.86
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HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
Divided into assets held for sale
Non-current asset due within
one year
Other current assets
Total current assets 8,271,312,153.37 6,935,871,775.57
Non-current assets:
Loans and payments on behalf
Finance asset available for
5,000,000.00 5,500,000.00
sales
Held-to-maturity investment
Long-term account
receivable
Long-term equity investment 78,096,234.75 14,211,004.21
Investment property 14,488,504.55 14,892,795.62
Fixed assets 1,250,954,494.88 1,223,763,920.86
Construction in progress 28,235,524.90 62,766,707.57
Engineering material
Disposal of fixed asset 75,734,875.15 75,808,843.84
Productive biological asset
Oil and gas asset
Intangible assets 570,803,265.21 561,864,209.63
Expense on Research and
38,620,703.41 25,194,157.09
Development
Goodwill 5,313,913.50 5,313,913.50
Long-term expenses to be
apportioned
Deferred income tax asset 87,099,204.01 83,826,873.81
Other non-current asset 41,633,616.00
Total non-current asset 2,195,980,336.36 2,073,142,426.13
Total assets 10,467,292,489.73 9,009,014,201.70
Current liabilities:
Short-term loans 356,634,892.65 407,508,739.07
Loan from central bank
Absorbing deposit and
interbank deposit
Capital borrowed
Financial liability measured by
81,170.00
fair value and with variation
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HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
reckoned into current gains/losses
Derivative financial liability
Notes payable 2,638,130,242.78 1,553,110,292.55
Accounts payable 1,921,548,794.47 1,681,116,965.38
Accounts received in
250,150,216.76 296,641,377.09
advance
Selling financial asset of
repurchase
Commission charge and
commission payable
Wage payable 105,447,267.73 156,537,212.29
Taxes payable 134,142,270.74 51,153,350.18
Interest payable
Dividend payable 12,592,208.16 2,237,640.91
Other accounts payable 925,616,443.93 872,725,707.68
Reinsurance payables
Insurance contract reserve
Security trading of agency
Security sales of agency
Divided into liability held for sale
Non-current liabilities due
11,153,513.56 11,153,512.52
within 1 year
Other current liabilities
Total current liabilities 6,355,415,850.78 5,032,265,967.67
Non-current liabilities:
Long-term loans 48,400,646.40 18,947,000.00
Bonds payable
Including: preferred stock
Perpetual capital securities
Long-term account payable
Long-term wages payable 40,426,920.51 40,317,465.61
Special accounts payable
Projected liabilities 342,633,453.84 347,107,686.15
Deferred income 129,472,451.99 131,995,227.77
Deferred income tax
liabilities
Other non-current liabilities
108
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
Total non-current liabilities 560,933,472.74 538,367,379.53
Total liabilities 6,916,349,323.52 5,570,633,347.20
Owner’s equity:
Share capital 763,739,205.00 763,739,205.00
Other equity instrument
Including: preferred stock
Perpetual capital securities
Capital public reserve 1,459,001,004.62 1,466,959,939.03
Less: Inventory shares
Other comprehensive income -3,642,823.37 -3,262,898.99
Reasonable reserve
Surplus public reserve 359,857,106.14 359,857,106.14
Provision of general risk
Retained profit 947,998,727.87 835,453,313.49
Total owner’s equity attributable
3,526,953,220.26 3,422,746,664.67
to parent company
Minority interests 23,989,945.95 15,634,189.83
Total owner’s equity 3,550,943,166.21 3,438,380,854.50
Total liabilities and owner’s
10,467,292,489.73 9,009,014,201.70
equity
Legal Representative: Liu Tibin
Person in charge of accounting works: Zhang Xiaolong
Person in charge of accounting institute: Luo Bo
2. Balance Sheet of Parent Company
In RMB
Item Closing balance Opening balance
Current assets:
Monetary funds 2,228,647,696.34 2,392,059,424.25
Financial liability measured by
fair value and with variation 3,572,100.00
reckoned into current gains/losses
Derivative financial liability
Notes receivable 1,164,696,587.55 828,127,854.78
Accounts receivable 1,120,726,579.73 809,847,584.71
Account paid in advance 318,432,248.06 176,658,393.90
109
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
Interest receivable
Dividends receivable
Other receivables 43,155,289.53 54,910,749.80
Inventories 743,707,793.30 795,329,785.95
Divided into assets held for sale
Non-current assets maturing
within one year
Other current assets
Total current assets 5,622,938,294.51 5,056,933,793.39
Non-current assets:
Available-for-sale financial assets 5,000,000.00 5,000,000.00
Held-to-maturity investments
Long-term receivables
Long-term equity investments 841,792,186.92 833,369,872.61
Investment property 12,042,848.31 12,279,792.66
Fixed assets 915,003,097.35 885,435,282.76
Construction in progress 12,512,586.05 48,527,533.03
Project materials
Disposal of fixed assets 43,439,954.71 43,404,954.71
Productive biological assets
Oil and natural gas assets
Intangible assets 428,667,291.66 434,092,342.78
Research and development costs 8,153,264.51 509,879.01
Goodwill
Long-term deferred expenses
Deferred income tax assets 74,393,893.35 76,189,511.02
Other non-current assets
Total non-current assets 2,341,005,122.86 2,338,809,168.58
Total assets 7,963,943,417.37 7,395,742,961.97
Current liabilities:
Short-term borrowings 255,602,650.78 373,242,339.07
Financial liability measured by
fair value and with variation 81,170.00
reckoned into current gains/losses
Derivative financial liability
110
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
Notes payable 1,432,169,529.16 1,036,334,282.38
Accounts payable 1,043,677,846.55 1,151,471,839.41
Accounts received in advance 455,391,963.14 152,745,865.71
Wage payable 40,262,081.12 77,090,385.79
Taxes payable 56,491,216.59 23,323,462.51
Interest payable
Dividend payable 12,592,208.16 2,237,640.91
Other accounts payable 785,837,406.46 712,029,942.44
Divided into liability held for sale
Non-current liabilities due within
7,487,761.64 7,487,760.60
1 year
Other current liabilities
Total current liabilities 4,089,512,663.60 3,536,044,688.82
Non-current liabilities:
Long-term loans 7,292,800.00 7,932,800.00
Bonds payable
Including: preferred stock
Perpetual capital securities
Long-term account payable
Long-term wages payable 40,426,920.51 40,317,465.61
Special accounts payable
Projected liabilities 342,633,453.84 347,107,686.15
Deferred income 71,794,163.54 75,538,045.61
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 462,147,337.89 470,895,997.37
Total liabilities 4,551,660,001.49 4,006,940,686.19
Owners’ equity:
Share capita 763,739,205.00 763,739,205.00
Other equity instrument
Including: preferred stock
Perpetual capital securities
Capital public reserve 1,497,987,059.46 1,497,987,059.46
Less: Inventory shares
Other comprehensive income
111
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
Reasonable reserve
Surplus reserve 359,638,940.46 359,638,940.46
Retained profit 790,918,210.96 767,437,070.86
Total owner’s equity 3,412,283,415.88 3,388,802,275.78
Total liabilities and owner’s
7,963,943,417.37 7,395,742,961.97
equity
Legal Representative: Liu Tibin
Person in charge of accounting works: Zhang Xiaolong
Person in charge of accounting institute: Luo Bo
3. Consolidated Profit Statement
In RMB
Item Current Period Last Period
I. Total operating income 6,426,917,289.25 6,344,389,052.17
Including: Operating income 6,426,917,289.25 6,344,389,052.17
Interest income
Insurance gained
Commission charge and
commission income
II. Total operating cost 6,257,071,584.82 6,163,398,022.60
Including: Operating cost 5,084,245,127.90 4,780,495,721.56
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
Operating tax and extras 45,299,593.62 45,651,000.27
Sales expenses 945,446,083.20 1,156,472,220.52
Administration expenses 192,562,243.42 194,547,455.17
Financial expenses -45,802,594.42 -43,840,298.90
Losses of devaluation of asset 35,321,131.10 30,071,923.98
112
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
Add: Changing income of fair
3,653,270.00
value(Loss is listed with ―-‖)
Investment income (Loss is
-5,484,432.72 -784,297.22
listed with ―-‖)
Including: Investment income
on affiliated company and joint -6,482,572.94 -784,297.22
venture
Exchange income (Loss is
listed with ―-‖)
III. Operating profit (Loss is
168,014,541.71 180,206,732.35
listed with ―-‖)
Add: Non-operating income 14,805,119.86 20,397,907.16
Including: Disposal gains of
14,776.00 1,469,461.36
non-current asset
Less: Non-operating expense 9,264,613.15 2,812,927.92
Including: Disposal loss of
5,696,803.31 554,394.53
non-current asset
IV. Total Profit (Loss is listed
173,555,048.42 197,791,711.59
with ―-‖)
Less: Income tax expense 14,512,173.60 36,794,783.31
V. Net profit (Net loss is listed with
159,042,874.82 160,996,928.28
―-‖)
Net profit attributable to
158,369,766.68 159,106,275.83
owner’s of parent company
Minority shareholders’ gains and
673,108.14 1,890,652.45
losses
VI. Net after-tax of other
-506,008.36 986,062.81
comprehensive income
Net after-tax of other
comprehensive income attributable -379,924.38 591,637.68
to owners of parent company
(I) Other comprehensive income
items which will not be reclassified
subsequently to profit of loss
1. Changes as a result of
re-measurement of net defined
benefit plan liability or asset
2. Share of the other
comprehensive income of the
113
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
investee accounted for using equity
method which will not be
reclassified subsequently to profit
and loss
(II) Other comprehensive income
items which will be reclassified -379,924.38 591,637.68
subsequently to profit or loss
1. Share of the other
comprehensive income of the
investee accounted for using equity
method which will be reclassified
subsequently to profit or loss
2. Gains or losses arising from
changes in fair value of
available-for-sale financial assets
3. Gains or losses arising from
reclassification of held-to-maturity
investment as available-for-sale
financial assets
4. The effect hedging portion of
gains or losses arising from cash
flow hedging instruments
5. Translation differences arising on
translation of foreign currency -379,924.38 591,637.68
financial statements
6. Other
Net after-tax of other
comprehensive income attributable -126,083.98 394,425.13
to minority shareholders
VII. Total comprehensive income 158,536,866.46 161,982,991.09
Total comprehensive income
attributable to owners of parent 157,989,842.30 159,697,913.51
Company
Total comprehensive income
attributable to minority 547,024.16 2,285,077.58
shareholders
VIII. Earnings per share:
(i) Basic earnings per share 0.2074 0.2083
(ii) Diluted earnings per share 0.2074 0.2083
Legal Representative: Liu Tibin
Person in charge of accounting works: Zhang Xiaolong
Person in charge of accounting institute: Luo Bo
114
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
4. Profit Statement of Parent Company
In RMB
Item Current Period Last Period
I. Operating income 3,723,644,751.94 3,591,569,260.21
Less: Operating cost 3,185,022,932.49 3,035,452,754.85
Operating tax and extras 21,593,618.43 19,339,352.66
Sales expenses 366,740,764.98 356,762,344.86
Administration
92,172,562.14 93,218,907.10
expenses
Financial expenses -38,448,636.98 -33,830,360.73
Losses of devaluation of
9,251,853.73 42,129,575.68
asset
Add: Changing income of fair
3,653,270.00
value(Loss is listed with ―-‖)
Investment income (Loss
-6,059,877.47 -95,120.70
is listed with ―-‖)
Including: Investment
income on affiliated company and -6,577,685.69 -95,120.70
joint venture
II. Operating profit (Loss is
84,905,049.68 78,401,565.09
listed with ―-‖)
Add: Non-operating income 5,794,628.12 16,903,310.48
Including: Disposal gains of
680,315.07
non-current asset
Less: Non-operating expense 7,706,718.05 2,583,405.56
Including: Disposal loss of
5,679,902.32 428,397.72
non-current asset
III. Total Profit (Loss is listed
82,992,959.75 92,721,470.01
with ―-‖)
Less: Income tax expense 13,687,467.35 26,965,441.73
IV. Net profit (Net loss is listed
69,305,492.40 65,756,028.28
with ―-‖)
V. Net after-tax of other
comprehensive income
(I) Other comprehensive income
items which will not be
reclassified subsequently to profit
115
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
of loss
1. Changes as a result of
re-measurement of net defined
benefit plan liability or asset
2. Share of the other
comprehensive income of the
investee accounted for using
equity method which will not be
reclassified subsequently to profit
and loss
(II) Other comprehensive income
items which will be reclassified
subsequently to profit or loss
1. Share of the other
comprehensive income of the
investee accounted for using
equity method which will be
reclassified subsequently to profit
or loss
2. Gains or losses arising from
changes in fair value of
available-for-sale financial assets
3. Gains or losses arising from
reclassification of
held-to-maturity investment as
available-for-sale financial assets
4. The effect hedging portion of
gains or losses arising from cash
flow hedging instruments
5. Translation differences arising
on translation of foreign currency
financial statements
6. Other
VI. Total comprehensive income 69,305,492.40 65,756,028.28
VII. Earnings per share:
(i) Basic earnings per share 0.0907 0.0861
(ii) Diluted earnings per share 0.0907 0.0861
Legal Representative: Liu Tibin
Person in charge of accounting works: Zhang Xiaolong
Person in charge of accounting institute: Luo Bo
116
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
5. Consolidated Cash Flow Statement
In RMB
Item Current Period Last Period
I. Cash flows arising from
operating activities:
Cash received from selling
commodities and providing labor 4,715,209,084.80 3,626,062,256.05
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
Net increase of amount from
disposal financial assets that
measured by fair value and with
variation reckoned into current
gains/losses
Cash received from interest,
commission charge and
commission
Net increase of capital
borrowed
Net increase of returned
business capital
Write-back of tax received 108,433,705.43 65,296,987.56
Other cash received
12,191,213.81 8,804,431.58
concerning operating activities
Subtotal of cash inflow arising
4,835,834,004.04 3,700,163,675.19
from operating activities
Cash paid for purchasing 3,401,696,411.29 2,964,018,786.37
117
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
commodities 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
Cash paid for interest,
commission charge and
commission
Cash paid for bonus of
guarantee slip
Cash paid to/for staff and
560,891,490.11 478,549,438.13
workers
Taxes paid 194,638,169.71 196,573,266.91
Other cash paid concerning
335,196,945.90 333,430,909.54
operating activities
Subtotal of cash outflow arising
4,492,423,017.01 3,972,572,400.95
from operating activities
Net cash flows arising from
343,410,987.03 -272,408,725.76
operating activities
II. Cash flows arising from
investing activities:
Cash received from
100,500,000.00 606,076.88
recovering investment
Cash received from
998,140.22
investment income
Net cash received from
disposal of fixed, intangible and 4,188,632.00 41,112,847.21
other long-term assets
Net cash received from
disposal of subsidiaries and other
units
Other cash received
53,250,686.61 40,975,072.99
concerning investing activities
Subtotal of cash inflow from
158,937,458.83 82,693,997.08
investing activities
Cash paid for purchasing 53,371,320.52 46,469,287.11
118
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
fixed, intangible and other
long-term assets
Cash paid for investment 170,149,995.00 1,097,791.00
Net increase of mortgaged
loans
Net cash received from
subsidiaries and other units
obtained
Other cash paid concerning
427,715.77 1,854,670.00
investing activities
Subtotal of cash outflow from
223,949,031.29 49,421,748.11
investing activities
Net cash flows arising from
-65,011,572.46 33,272,248.97
investing 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 899,641,581.00 1,059,138,910.42
Cash received from issuing
bonds
Other cash received
concerning financing activities
Subtotal of cash inflow from
899,641,581.00 1,059,138,910.42
financing activities
Cash paid for settling debts 1,022,938,903.44 332,556,137.54
Cash paid for dividend and
profit distributing or interest 41,118,662.30 4,760,549.52
paying
Including: Dividend and profit of
minority shareholder paid by
subsidiaries
Other cash paid concerning
224,020.35 2,973,468.35
financing activities
Subtotal of cash outflow from 1,064,281,586.09 340,290,155.41
119
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
financing activities
Net cash flows arising from
-164,640,005.09 718,848,755.01
financing activities
IV. Influence on cash and cash
equivalents due to fluctuation in 9,712,867.85 -2,694,336.20
exchange rate
V. Net increase of cash and cash
123,472,277.33 477,017,942.02
equivalents
Add: Balance of cash and
cash equivalents at the period 2,645,879,017.88 2,238,884,137.50
-begin
VI. Balance of cash and cash
2,769,351,295.21 2,715,902,079.52
equivalents at the period -end
Legal Representative: Liu Tibin
Person in charge of accounting works: Zhang Xiaolong
Person in charge of accounting institute: Luo Bo
6. Cash Flow Statement of Parent Company
In RMB
Item Current Period Last Period
I. Cash flows arising from
operating activities:
Cash received from selling
commodities and providing labor 2,587,323,791.86 2,251,654,436.67
services
Write-back of tax received 50,835,256.44 34,967,339.65
Other cash received concerning
5,957,421.13 780,338.96
operating activities
Subtotal of cash inflow arising
2,644,116,469.43 2,287,402,115.28
from operating activities
Cash paid for purchasing
commodities and receiving labor 2,301,440,737.17 2,158,154,167.87
service
Cash paid to/for staff and workers 196,459,026.37 202,313,338.91
Taxes paid 62,883,474.12 58,947,750.93
Other cash paid concerning
144,418,281.65 105,638,364.68
operating activities
Subtotal of cash outflow arising
2,705,201,519.31 2,525,053,622.39
from operating activities
120
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
Net cash flows arising from
-61,085,049.88 -237,651,507.11
operating activities
II. Cash flows arising from
investing activities:
Cash received from
100,000,000.00
recovering investment
Cash received from
517,808.22
investment income
Net cash received from
disposal of fixed, intangible and 969,312.00 814,238.81
other long-term assets
Net cash received from
disposal of subsidiaries and other
units
Other cash received
38,798,411.37 38,216,769.95
concerning investing activities
Subtotal of cash inflow from
140,285,531.59 39,031,008.76
investing activities
Cash paid for purchasing
fixed, intangible and other 23,752,926.57 31,531,065.37
long-term assets
Cash paid for investment 115,000,000.00 40,950,000.00
Net cash received from
subsidiaries and other units
Other cash paid concerning
427,715.77 1,854,670.00
investing activities
Subtotal of cash outflow from
139,180,642.34 74,335,735.37
investing activities
Net cash flows arising from
1,104,889.25 -35,304,726.61
investing activities
III. Cash flows arising from
financing activities
Cash received from absorbing
investment
Cash received from loans 811,087,023.59 904,950,576.65
Cash received from issuing bonds
Other cash received
186,369,209.14 35,933,925.12
concerning financing activities
121
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
Subtotal of cash inflow from
997,456,232.73 940,884,501.77
financing activities
Cash paid for settling debts 970,217,403.44 221,905,837.54
Cash paid for dividend and
profit distributing or interest 39,915,654.04 3,261,327.22
paying
Other cash paid concerning
96,136,206.56 3,759,390.71
financing activities
Subtotal of cash outflow from
1,106,269,264.04 228,926,555.47
financing activities
Net cash flows arising from
-108,813,031.31 711,957,946.30
financing activities
IV. Influence on cash and cash
equivalents due to fluctuation in 6,994,571.70 -4,144,705.53
exchange rate
V. Net increase of cash and cash
-161,798,620.24 434,857,007.05
equivalents
Add: Balance of cash and
cash equivalents at the period 2,390,446,316.58 1,996,577,625.49
-begin
VI. Balance of cash and cash
2,228,647,696.34 2,431,434,632.54
equivalents at the period -end
Legal Representative: Liu Tibin
Person in charge of accounting works: Zhang Xiaolong
Person in charge of accounting institute: Luo Bo
122
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
7. Statement of Changes in Owners’ Equity (Consolidated)
This Period
In RMB
This Period
Owners’ equity attributable to parent company
Other
Item Provision Minority Total owners’
equity instrument Less: Other
Reasonable of
Share capital Perpetual Capital reserve Inventory comprehensive Surplus reserve Retained profit interests equity
Preferred reserve general
capital Other shares income
stock risk
securities
I. Balance at
the end of the 763,739,205.00 1,466,959,939.03 -3,262,898.99 359,857,106.14 835,453,313.49 15,634,189.83 3,438,380,854.50
last year
Add: Changes
of accounting
policy
Error
correction of
the last period
Enterprise
combine
under the
same control
Other
II. Balance at
the beginning 763,739,205.00 1,466,959,939.03 -3,262,898.99 359,857,106.14 835,453,313.49 15,634,189.83 3,438,380,854.50
of this year
III. Increase/
Decrease in
-7,958,934.41 -379,924.38 112,545,414.38 8,355,756.12 112,562,311.71
this year
(Decrease is
123
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
listed with ―-‖)
(i) Total
comprehensive -379,924.38 158,369,766.68 547,024.16 158,536,866.46
income
(ii) Owners’
devoted and
-7,958,934.41 7,808,731.96 -150,202.45
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 -7,958,934.41 7,808,731.96 -150,202.45
(III) Profit
-45,824,352.30 -45,824,352.30
distribution
1. Withdrawal
of surplus
reserves
2. Withdrawal
of general risk
provisions
3. Distribution
-45,824,352.30 -45,824,352.30
for owners (or
124
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
shareholders)
4. Other
(IV) Carrying
forward
internal
owners’ equity
1. Capital
reserves
conversed to
capital (share
capital)
2. Surplus
reserves
conversed to
capital (share
capital)
3. Remedying
loss with
surplus reserve
4. Other
(V)
Reasonable
reserve
1. Withdrawal
in the report
period
2. Usage in the
report period
(VI)Others
IV. Balance at
the end of the 763,739,205.00 1,459,001,004.62 -3,642,823.37 359,857,106.14 947,998,727.87 23,989,945.95 3,550,943,166.21
report period
Last Period
125
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
In RMB
Last Period
Owners’ equity attributable to the parent Company
Other
Item Provision Minority Total owners’
equity instrument Less: Other
Reasonable of
Share capital Perpetual Capital reserve Inventory comprehensive Surplus reserve Retained profit interests equity
Preferred reserve general
capital Other shares income
stock risk
securities
I. Balance at
the end of the 763,739,205.00 1,478,904,455.90 -1,939,397.56 337,902,735.75 608,723,517.81 20,399,491.82 3,207,730,008.72
last year
Add: Changes
of accounting
policy
Error
correction of
the last period
Enterprise
combine under
the same
control
Other
II. Balance at
the beginning 763,739,205.00 1,478,904,455.90 -1,939,397.56 337,902,735.75 608,723,517.81 20,399,491.82 3,207,730,008.72
of this year
III. Increase/
Decrease in
this year -11,944,516.87 -1,323,501.43 21,954,370.39 226,729,795.68 -4,765,301.99 230,650,845.78
(Decrease is
listed with ―-‖)
(i) Total
comprehensive -1,323,501.43 294,508,518.37 -13,859,467.55 279,325,549.39
income
126
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
(ii) Owners’
devoted and
-11,944,516.87 7,308,772.91 -4,635,743.96
decreased
capital
1.Common
shares
7,308,772.91 7,308,772.91
invested by
shareholders
2. Capital
invested by
holders of
other equity
instruments
3. Amount
reckoned into
owners equity
with
share-based
payment
4 Other -11,944,516.87 -11,944,516.87
(III) Profit
21,954,370.39 -67,778,722.69 1,785,392.65 -44,038,959.65
distribution
1. Withdrawal
of surplus 21,954,370.39 -21,954,370.39
reserves
2. Withdrawal
of general risk
provisions
3. Distribution
for owners (or -45,824,352.30 1,785,392.65 -44,038,959.65
shareholders)
4. Other
(IV) Carrying
forward
127
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
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. Other
(V)
Reasonable
reserve
1. Withdrawal
in the report
period
2. Usage in the
report period
(VI)Others
IV. Balance at
the end of the 763,739,205.00 1,466,959,939.03 -3,262,898.99 359,857,106.14 835,453,313.49 15,634,189.83 3,438,380,854.50
report period
Legal Representative: Liu Tibin
Person in charge of accounting works: Zhang Xiaolong
Person in charge of accounting institute: Luo Bo
128
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
8. Statement of Changes in Owners’ Equity (Parent Company)
This Period
In RMB
This Period
Other
Item equity instrument Less: Other
Reasonable Total owners’
Share capital Perpetual Capital reserve Inventory comprehensive Surplus reserve Retained profit
Preferred reserve equity
capital Other shares income
stock
securities
I. Balance at the
end of the last 763,739,205.00 1,497,987,059.46 359,638,940.46 767,437,070.86 3,388,802,275.78
year
Add: Changes of
accounting policy
Error correction
of the last period
Other
II. Balance at the
beginning of this 763,739,205.00 1,497,987,059.46 359,638,940.46 767,437,070.86 3,388,802,275.78
year
III. Increase/
Decrease in this
23,481,140.10 23,481,140.10
year (Decrease is
listed with ―-‖)
(i) Total
comprehensive 69,305,492.40 69,305,492.40
income
(ii) Owners’
devoted and
decreased capital
1.Common
shares invested
129
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
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
-45,824,352.30 -45,824,352.30
distribution
1. Withdrawal of
surplus reserves
2. Distribution
for owners (or -45,824,352.30 -45,824,352.30
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
130
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
loss with surplus
reserve
4. Other
(V) Reasonable
reserve
1. Withdrawal in
the report period
2. Usage in the
report period
(VI)Others
IV. Balance at the
end of the report 763,739,205.00 1,497,987,059.46 359,638,940.46 790,918,210.96 3,412,283,415.88
period
Last period
In RMB
Last period
Other
Item equity instrument Less: Other
Reasonable Total owners’
Share capital Perpetual Capital reserve Inventory comprehensive Surplus reserve Retained profit
Preferred reserve equity
capital Other shares income
stock
securities
I. Balance at the
end of the last 763,739,205.00 1,497,898,194.51 337,684,570.07 615,672,089.65 3,214,994,059.23
year
Add: Changes of
accounting policy
Error correction
of the last period
Other
II. Balance at the
beginning of this 763,739,205.00 1,497,898,194.51 337,684,570.07 615,672,089.65 3,214,994,059.23
year
131
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
III. Increase/
Decrease in this
88,864.95 21,954,370.39 151,764,981.21 173,808,216.55
year (Decrease is
listed with ―-‖)
(i) Total
comprehensive 219,543,703.90 219,543,703.90
income
(ii) Owners’
devoted and 88,864.95 88,864.95
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 88,864.95 88,864.95
(III) Profit
21,954,370.39 -67,778,722.69 -45,824,352.30
distribution
1. Withdrawal of
21,954,370.39 -21,954,370.39
surplus reserves
2. Distribution
for owners (or -45,824,352.30 -45,824,352.30
shareholders)
3. Other
(IV) Carrying
forward internal
132
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
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. Other
(V) Reasonable
reserve
1. Withdrawal in
the report period
2. Usage in the
report period
(VI)Others
IV. Balance at the
end of the report 763,739,205.00 1,497,987,059.46 359,638,940.46 767,437,070.86 3,388,802,275.78
period
Legal Representative: Liu Tibin
Person in charge of accounting works: Zhang Xiaolong
Person in charge of accounting institute: Luo Bo
133
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
I. Company profile
(I) Historical Origin
Hefei Meiling Co., Ltd (hereinafter referred to as ―the Company‖) 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 [Wanzhenmin (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 28 August 1996.
State-owned Assets Supervision & Administration Commission of the State Council approved such
transfers with Document Guozi Chanquan No.253 in 2007 Reply on Matters of Hefei Meiling Group
Holdings Company Limited Transferring Partial State-owned Ownership, Hefei Meiling Group Holdings
Company Limited (hereinafter abbreviated 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 abbreviated as Changhong Group), other 45,000,000 shares to Sichuan Changhong Electric Co.
Ltd (hereinafter abbreviated as Sichuan Changhong). On 15 August 2007, the above ownerships were
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 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. 750] issued by SASAC, agrees the above said transferring.
On 29 October 2008, Changhong Group Company 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 Company. 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. 1412] issued by SASAC agrees the above said share
134
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
transferring.
On 24 December 2010, being deliberated and approved in 32nd Meeting of 6th Session of the Board and
2nd Extraordinary Shareholders’ General Meeting of 2010 as well as approval of document [ZJXP(2010) No.
1715] from CSRC, totally 116,731,500 RMB ordinary shares (A stock) were offering privately to target
investors with issue price of RMB 10.28/share. Capital collecting amounting to RMB 1,199,999,820 after
issuing expenses RMB 22,045,500 deducted, net capital collected amounting to RMB 1,177,954,320, and
paid-in capital(share capital) increased RMB 116,731,500 with capital reserve(share premium) RMB
1,061,106,088.5 increased. The increasing capital has been verified by Capital Verification Report No.:
［XYZH2010CDA6021］issued from Shinwing 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.
Ended as 30 June 2015, total share capital of the Company amounting to 763,739,205shares with
ordinary shares in full. Among which, 600,875,205 shares of A-share accounting 78.68% in total shares
while B-share with 162,864,000 shares accounting 21.32% in total shares. Detail share capital as:
Type of stock Quantity Proportion
(I)Restricted shares 10,658,356.00 1.40%
1. State-owned shares - -
2. State-owned legal person’s shares 915,987.00 0.12%
3. Other domestic shares 9,077,875.00 1.19%
Including: Domestic legal person’s
6,714,683.00 0.88%
shares
Domestic natural person’s
2,363,192.00 0.31%
shares
4. Foreign shares 664,494.00 0.09%
(II)Unrestricted shares 753,080,849.00 98.60%
1. RMB Ordinary shares 590,881,343.00 77.36%
2. Domestically listed foreign shares 162,199,506.00 21.24%
135
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
3. Overseas listed foreign shares - -
4. Others - -
Total shares 763,739,205.00 100.00%
(2) Business nature and its business activities
The Company belongs to the manufacture of light industry, and engaged in the production and sale of
refrigerator, freezer and air-conditioner. Registration No. of the Business License of Corporation Legal
Person: 340000400001278; Address: No.2163, Lianhua Road, Economy and Technology Development Zone,
Hefei City; Legal Representative: Liu Tibin; register capital(paid-in capital): RMB 763,739,205; type of
company: limited liability company(joint venture and listed of Taiwan, Hong Kong and Macau) Business
Scope: Manufacture of cooling apparatus, air-conditioner, washing machine, injection plastic machine of
computer controlling, computer heater, plastic products, packaging products and decorations. Business of
self-produced products, technology export and import&export of the raw&auxilary materials, machinery
equipment, instrument and technology; department sales and transportation
(3) Name of the parent Company and final actual controller of the Group
Ended as 30 June 2015, Sichuan Changhong and its accord actionist totally held 24.88% shares of the
Company and is the first largest shareholder; Changhong Group held 23.20% shares of Sichuan Changhong
accounting and is the first largest shareholder of Sichuan Changhong; State-owned Assets Supervision &
Administration Commission of Mianyang Municipality held 100% equities of Changhong Group and is the
final actual controller of the Company.
II. Scope of consolidated financial statement
The Company’s consolidated financial statement have 47 subsidiaries and sub-subsidiaries including
Sichuan Changhong Air Conditioner CO., Ltd, Zhongshan Changhong Appliances Company Limited and
Zhongke Meiling Cryogenic Technology Co., Ltd. etc. During the period, Neijiang Meiling Appliance
Marketing Co., Ltd excluded in the consolidated statement due to liquidation.
More detail can be seen in ―VII. Changes of consolidated scope‖ and ―VIII. Rights and interest in other
subjects‖ 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 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
136
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
IV. Significant Accounting Policy, 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 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. Standard currency for accounting
The Company takes RMB as the standard currency for accounting.
4. Accountant arrangement method of business combination under common control and not under
common control
As acquirer, the Company measures the assets and liabilities acquired through business combination
under common control at their carrying values as reflected in the consolidated financial statement of the
ultimate controller as of the combination date. Capital reserve shall be adjusted in respect of any difference
between carrying value of the net assets acquired and carrying value of the combination consideration paid.
In case that capital reserve is insufficient to offset, the Company would adjust retained earnings.
The acquiree’s net identifiable assets, liabilities or contingent liabilities acquired through business
combination not under common control shall be measured at fair value as of the acquisition date. The cost of
combination represents the fair value of the cash or non-cash assets paid, liabilities issued or committed and
equity securities issued by the Company as at the date of combination in consideration for acquiring the
controlling power in the acquiree, together with the sum of any directly related expenses occurred during
business combination(in case of such business combination as gradually realized through various
transactions, the combination cost refers to the sum of each cost of respective separate transaction). Where
the cost of the combination exceeds the acquirer’s interest in the fair value of the acquirer’s identifiable net
assets acquired, the difference is recognized as goodwill; where the cost of combination is lower than the
acquirer’s interest in the fair value of the acquiree’s identifiable net assets, the Company shall firstly make
further review on the fair values of the net identifiable assets, liabilities or contingent liabilities acquired as
well as the fair value of the non-cash assets portion of combination consideration or the equity securities
issued by the Company. In case that the Company finds the cost of combination is still lower than the
acquirer’s interest in the fair value of the acquiree’s identifiable net assets after such further review, the
difference is recognized in non-operating income for the current period when combination occurs.
5. Measures on Preparation of Consolidated Financial Statements
The Company shall put all the subsidiaries controlled and main body structured into consolidated
financial statements.
137
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
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 year’s financial statement shall be adjusted as if the reporting entity formed upon combination has
been existing since the ultimate controller commenced relevant control.
As for equity interests of the investee under common control acquired through various transactions
which eventually formed business combination, the Company shall supplement disclosure of the accounting
treatment in consolidated financial statement in the reporting period when controlling power is obtained. For
example, as for equity interests of the investee under common control acquired through various transactions
which eventually formed business combination, adjustments shall be made as if the current status had been
existing when the ultimate controller commenced control in connection of preparing consolidated financial
statement; in connection with preparing comparative statement, the Company shall consolidate the relevant
assets and liabilities of the acquiree into the Company’s comparative consolidated financial statement to the
extent not earlier than the timing when the Company and the acquiree are all under control of the ultimate
controller, and the net assets increased due to combination shall be used to adjust relevant items under
owners’ equity in comparative statement. In order to prevent double computation of the value of the
acquiree’s net assets, the relevant profits and losses, other comprehensive income and change of other net
assets recognized during the period from the date when the Company acquires original equity interests and
the date when the Company and the acquiree are all under ultimate control of the same party (whichever is
later) to the date of combination in respect of the long-term equity investment held by the Company before
satisfaction of combination shall be utilized to offset the beginning retained earnings and current gains and
losses in the period as the comparative financial statement involves, respectively.
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
138
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
example, as for equity interests of the investee not under common control acquired through various
transactions which eventually formed business combination, when preparing consolidated financial statement,
the Company would re-measure the equity interests held in the acquiree before acquisition date at their fair
value as of the acquisition date, and any difference between the fair value and carrying value is included in
current investment income. in case that the equity interests in acquiree held by the Company before the
relevant acquisition date involves other comprehensive income at equity method and change of other owners’
equity (other than net gains and losses, other comprehensive income and profit distribution), then the equity
interests would transfer to investment gains and losses for the period which the acquisition date falls upon.
The other comprehensive income arising from change of the net liabilities or net assets under established
benefit scheme as acquiree’s re-measured such scheme is excluded.
The transaction with non-controlling interest to dispose long-term equity investment in a subsidiary
without losing control rights over the subsidiary, the difference between the proceeds from disposal of
interests and the decrease of the shared net assets of the subsidiary is adjusted to capital premium (share
premium). In case capital reserve is not sufficient to offset the difference, retained earnings will be adjusted.
As for disposal of part equity investment which leads to losing control over the investee, the Company
would re-measure the remaining equity interests at their fair value as of the date when the Company loses
control over the investee when preparing consolidated financial statement. The sum of consideration received
from disposal of equity interest and fair value of the remaining equity interest, less the net assets of the
original subsidiary attributable to the Company calculated based on the original shareholding proportion
since the acquisition date or the date then consolidation commences, is included in investment gains and
losses for the period when control is lost, meanwhile to offset goodwill. Other comprehensive income related
to equity interest investment in original subsidiaries is transferred into current investment gains and losses
upon lost of control.
If the disposal of the equity investment of a subsidiary is realized through multiple transactions until
loss of control and is a package deal, the accounting treatment of these transactions should be dealt with as
one transaction of disposal of the subsidiary until loss of control. However, before the Company loses
total control 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.
6. 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.
7. Cash and cash equivalents
139
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
Cash in the cash flow statement comprises the Group’s cash on hand and deposits that can be readily
withdrawn on demand. Cash equivalents are short-term, highly liquid investments held by the Group, that
are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in
value, including but not limited to the followings which meet the aforesaid conditions: debt investment
matured within three months upon the acquisition date, bank time deposit which can be early withdrew by
serving a notice and transferrable deposit receipt, etc. for time deposit which can not be used for payment at
any time, it would be note recognized as cash; while if can be used for such purpose, it would be recognized
as cash. Guarantee deposit over three months in other monetary capital shall not be recognized as cash
equivalents, and those less than three months are recognized as cash equivalents.
8. Foreign currency business and foreign currency financial statement conversion
(1) Foreign currency business
As for the foreign currency business, the Company converts the foreign currency amount into RMB
amount pursuant to the spot exchange rate as of the business day. As at the balance sheet date, monetary
items expressed by foreign currency are converted into RMB pursuant to the spot exchange rate as of the
balance sheet date. The conversion difference occurred is recorded into prevailing gains and losses, other
than the disclosure which is made according to capitalization rules for the exchange difference occurred from
the special foreign currency borrowings borrowed for constructing and producing the assets satisfying
condition of capitalization. As for the foreign currency non-monetary items measured by fair value, the
amount is then converted into RMB according to the spot exchange rate as of the confirmation day for fair
value. And the conversion difference occurred during the procedure is recorded into prevailing gains and
losses directly as change of fair value. As for the foreign currency non-monetary items measured by
historical cost, conversion is made with the spot exchange rate as of the business day, with no change in
RMB amount.
(2) Conversion of foreign currency financial statement
Spot exchange rate as of the balance sheet date is adopted for conversion of assets and liabilities in
foreign currency balance sheet; as for the items in statement of owners’ equity except for ―Undistributed
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.
9. Financial assets and financial liabilities
(1) Financial assets
1) Classification of financial assets
In consideration of investment targets and economic essence, the Company groups the financial assets
owned by it as four categories, namely financial assets measured by fair value and whose movement is
140
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
recorded into prevailing gains and losses, held-to-maturity investment, loans and accounts receivables, as
well as financial assets available-for-sale.
Financial assets measured by fair value and whose movement is recorded into prevailing gains and
losses represent the financial assets which are held mainly for disposal in a short time and listed as tradable
financial assets in the balance sheet.
Held-to-maturity investment represents the non-derivative financial assets which has fixed maturity day,
fixed or available-for-confirmation recovered amount and for which the management has definite intention
and ability to hold till maturity.
Loans and accounts receivables represent the non-derivative financial assets which have no quotation in
an active market and fixed or available-for-confirmation recovered amount.
Financial assets available-for-sale including the non-derivative financial assets available-for-sale and
the financial assets which have not been grouped as others at the initial confirmation
2) Recognition and measurement for financial assts
Financial assets, while become party of the contract of financial instrument in the Company, recognized
in balance sheet by fair value. For the financial assets which are measured by fair value and whose fair
value change is recorded into prevailing gains and losses, the relevant transaction expense arising from
acquisition is recorded into prevailing gains and losses directly, while the relevant transaction expense of
other financial assets is recorded into initial recognition amount.
Financial assets which are measured by fair value and whose fair value change is recorded into
prevailing gains and losses, together with financial assets available-for-sale, would have follow-up
measurement according to fair value; effective interest method is adopted for loans and accounts receivables
and held-to-maturity investment which are shown in amortized cost.
Fair value change of financial assets which are measured by fair value and whose fair value change is
recorded into prevailing gains and losses is recorded into gains and losses of fair value change; interests or
cash dividend acquired from holding assets are recognized as investment income; when disposing such assets,
the difference between their fair value and initial accounting amount is recognized as investment gains and
losses. Meanwhile, gains and losses of fair value shall be adjusted.
Except impairment losses and exchange gains/loss from financial assets with foreign currency, variation
of the fair value for financial assets available for sale should reckon into shareholders’ equity. The
variation of fair value accumulative reckon into equity previously should transfer into current gains/losses
while recognition of this financial asset terminated. For the interest during period of holding for instrument
investment of liability available for sale based on real interest rate, and cash dividend related with instrument
investment of equity available for sale that announced by invested enterprises should reckon into current
gains/losses as investment incomes.
3) Impairment of financial assets
Except for the financial assets which are measured by fair value and whose fair value change is recorded
141
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
into prevailing gains and losses, the Company will make check in the carrying value of other financial assets
as at the balance sheet date. If there is objective evidence proving impairment of certain financial assets, the
Company then makes provision for impairment.
When the financial assets calculated by amortized cost decrease in value, count and draw the provision
for impairment according to the balance between present value and book value of predicted future cash flows
(Excluding future credit losses that haven’t occurred yet.). If there is any objective evidence to indicate that
the financial assets has recovered and is objectively connected with matters occurred after confirming the
losses, the formerly confirmed impairment losses will be reversed and reckoned in current profits and losses.
When the fair value of financial assets available for sale goes down substantially or non- transiently, the
accumulating losses previously and directly reckoned in shareholder's equity and formed due to shrinkage of
fair value will be transferred and reckoned in impairment losses. As for the debt instrument investment
available for sale with confirmed impairment losses, if its fair value rises after and it is objectively connected
with matters occurred after confirming the primary impairment losses, the formerly confirmed impairment
losses will be reversed and reckoned in current profits and losses. And the debt instrument investment
available for sale with confirmed impairment losses shall be directly reckoned in stockholder's equity if its
fair value rises after.
4) 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 degree of keeping involving into the transferred financial assets refers to the risk level with
which the fluctuation of this financial asset value makes the enterprise face.
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
142
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
that should be apportioned to the derecognized parts and the apportioned aforementioned carrying amounts
in the current profits and losses.
(2) Financial liabilities
When making the initial recognition for financial liabilities, the Company classifies the financial
liabilities into ones which are measured by fair value and whose change is recorded into prevailing gains and
losses, and other financial liabilities.
Financial liabilities which are measured by fair value and whose change is recorded into prevailing
gains and losses include tradable financial liabilities and financial liabilities which are measured by fair value
and whose change is recorded into prevailing gains and losses at the initial recognition day. Follow-up
measurements are made by fair value. Recorded into prevailing gains and losses are the gains or losses
formed through fair value change and dividend and interest expenditure regarding to the financial liabilities.
As for other financial liabilities, effective interest rate method is adopted and follow-up measurement is
made according to amortized cost.
1- Method for recognition of fair value of financial assets and liabilities
For those financial instruments existing in active markets, market quotation in the active market is used
to confirm their fair values. In active market, the Company takes the present bid price of already-held
financial assets or plan-to-undertake financial liabilities as the fair values of relevant assets and liabilities; the
Company takes the present offer price of plan-to-buy financial assets and –already-undertaken liabilities as
the fair values of relevant assets and liabilities. In the situation that there are no present bid and offer price
for financial assets and liabilities, while there is no material change in economic environment after the latest
business day, then fair value of the financial assets and liabilities is to confirm pursuant to the latest business
market quotation.
Fair value of the financial instruments which have no active market is confirmed by adoption of
estimation technology. Estimation technology includes reference to the price applied by parties which know
well situation and are willing to make deals in the latest market business, reference to the current fair value
of other financial assets which are the same in principle, reference to discounted cash flow method and
option pricing model.
10. Bad debt provision for accounts receivable
Allowance method is adopted for the bad debt losses which are likely to happen. And conducting
impairment test independently or by combination at period-end, withdrawn bad debt provision and then
recorded into current gains and losses. As for the accounts receivable which are not able to call back through
definite evidence, they shall be treated as bad debt losses after approval of the Group according to regulated
procedures to offset withdrawn bad debt provision.
The following situation as standards for confirmation of bad debt losses of accounts receivable: revoke,
bankruptcy, insolvency, serious insufficiency of cash flow of its debit units, or the debit units have to stop
production due to serious natural disaster and are not able to settle the debts or in predicted time, or other
143
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
definite evidence showing that the debt is not available to call back or the possibility of calling back is tiny.
Account receivables were divided as follow categories at period-end, which was performed impairment
test in way of individual or group, and withdrawal bad debt provision:
(1) Account receivable with single significant amount:
Determine basis or If totally amount takes over 80% of the total for over 5% occupied, than 5% of
amount standards for single amount in total amounts recognized as single significant amount; if
single significant totally amount takes less than 80% of the total for over 5% occupied, than lower
amount recognition standards till qualified 80% in total
Method of bad debt
provision accrual for Withdrawal bad debt provision according to difference between the current
account receivable with value of future cash flow and book values; if there has no impairment been
single major amount found in individual test, withdrawal bad debt provision while testing by group
(2) Account receivable withdrawal bad debt provision based on combination:
Basis for combination recognized
Combination 1 Account receivable except combination 2
Employee reserve fund, foreign investment amount, contact with related party in consolidated statement
Combination 2 of Changhong Group, export tax refund receivable, account receivable with L/C or insurance,
government subsidy etc.
Methods on withdrawal of bad debt provision based on combination
Combination 1 Withdrawal bad debt provision by proportion in different age group
Combination 2 Risks are under control without bad debt provision accrual
In combination 1, withdrawal proportion of bad debt provision for account receivable
based on age analysis:
Withdrawal proportion of account Withdrawal proportion of other
Age
receivable (%) account receivable (%)
Within 1 year (1year
5 5
included )
1－2 years 15 15
2－3 years 35 35
3－4 years 55 55
4－5 years 85 85
Over 5 years 100 100
(3) Account receivable with single minor amount but withdrawal single item bad debt
provision:
Reasons for withdrawal
Account with minor amount but have significant inflow risk on predicted future
single item bad debt
cash flow
provision
Withdrawal method for Impairment test on the current value of predicted future cash flow, bad debt
bad debt provision provision withdrawal.
11. Inventories
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 and mould etc.
144
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
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; the mould expenses will evenly deferred share based on balance at
period-begin plus increase amount in this period divided by 12 months.
Inventory at period-end valued by the Lower-of-value between the cost and net realizable
value. For those individual stock, suffering damage, totally or partly out of fashion or has
lower sales price than cost, predicted recoverable parts in cost, and withdrawal provision of
inventory depreciation single. For those raw materials, stock commodities and goods in transit,
withdrawal provision of inventory depreciation by follow methods:
(1) Determined the net realizable value of raw materials on the higher amount between the
final prices of estimated sale-price deducted cost (about to happen till products finished),
estimated sales expense and relevant taxes, and the fair value of external disposal.
(2) Withdrawal obsolete provision for commodity stocks and goods in transit by the follow
proportion:
(1) Refrigerator, freezer and washing machine
Withdrawal proportion for obsolete
Grade Stock duration
provision
Within 3 months 0%
4-6 months 5%
7-12 months 15%
Grade-A
1-2 years 25%
2-3 years 40%
Over 3 years 100%
Qualified 40%
Grade-B 50%
Grade-C 60%
Unqualified 60%
Disposal 65%
Sample machine 30%
Special user type that exceed the order quantity 50%
(2) Air-conditioner
Location level Withdrawal proportion for obsolete
145
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
provision
Repair 50%
Awaiting repair 70%
Store return 70%
De-stocking 70%
Overstock 100%
The Company re-checks the above mentioned proportion at every end of the year.
Calculated the net realizable value by difference between the estimated sale price less the
estimated sales expense and relevant taxation; after comparison with the book value of
commodity stocks and goods in transit, determined whether adjusted the proportion or not.
Mould expense will amortize in installment in usual times. Once the use-life of mould being
terminated, than transfer its remaining cost into gains/losses, and no withdrawal of obsolete
provision at period-end.
12. Long-term equity investment
Long-term equity investment of the Company is mainly about investment in subsidiary,
investment in associates and investment in joint-ventures.
For long-term equity investments acquired through business combination under common
control, the initial investment cost shall be the acquirer’s share of the carrying amount of net
assets of the acquiree as of the combination date as reflected in the consolidated financial
statement of the ultimate controller. If the carrying amount of net assets of the acquiree as of
the combination date is negative, the investment cost of long-term equity investment shall be
zero. For long-term equity investment acquired through business combination not under
common control, the initial investment cost shall be the combination cost.
Excluding the long-term equity investment acquired through business combination, there
is also a king of long-term equity investment acquired through cash payment, for 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
146
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
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 Enterprise Accounting Principles No.22-Recognition and Measurement of
Financial Instrument. Difference between the fair value of the remaining equity interest as of
the date when lose of joint control or significant influence and the carrying value is included in
current gains and losses. Other comprehensive income recognized in respect of the original
equity interest investment under equity method should be treated according to the same basis
which the investee adopts to directly dispose the relevant assets or liabilities when ceasing
adoption of equity method calculation; and also switches to cost method for calculating the
long-term equity investments which entitles the Company to have conduct control over the
invested units due to its additional investments; and switches to equity method for calculating
the long-term equity investments which entitles the Company to conduct common control or
significant influence, while no control over the invested units due to its additional investments,
or the long-term equity investments which entitles the Company with no control over the
invested units any longer while with common control or significant influence.
When disposing long-term equity investment, the balance between its carrying value and
effective price for obtaining shall be recorded into current investment income. When disposing
long-term equity investments which are 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
147
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
losses of the invested units shall be recorded into owners’ equity.
13. 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
Type Depreciation term
value annum
Houses 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 is disposed, or out of utilization forever and no economic benefit would
be predicted to obtain through the disposal, the Company shall terminate recognition of such
investment real estate. The amount of income from disposal, transfer, discarding as scrap or
damage of investment real estate after deducting the asset’ s carrying value and relevant
taxation shall be written into current gains and losses.
14. Fixed assets
Fixed assets of the Company represent the tangible assets and assets package: held by the
Company for purpose of producing commodities, providing labor service, leasing or
operational management, service life exceeds one year, and unit price exceeds RMB 2,000.
Including four categories of houses and buildings, machinery equipments, transportation
equipments and other equipments
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
148
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
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. Type Depreciation term
value annum
1 Houses and buildings 30-40 years 4%-5% 2.375%-3.20%
2 Machinery equipments 10-14 years 4%-5% 6.786%-9.60%
3 Transport equipment 5-12 years 4%-5% 7.92%-19.20%
4 Other equipments 8-12 years 4%-5% 7.92%-12.00%
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.
15. Construction in process
Construction in process is measured with effective cost. Self-operated constructions
projects are measured with direct materials, direct salaries and direct construction expense;
construction projects undertaken by external are measured with the engineering payment
payable; and engineering cost (income abatement) of equipment-installation projects is
149
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
confirmed with consideration of value of the equipments, installation fee, and expenditure
arising from trial operation of the projects. Borrowing expense and exchange gains and losses
which should be capitalized are also included in cost of construction in process.
16. Borrowing expense
Borrowing expenses include interest expense, amortization of discount or premium,
auxiliary expenses and exchange difference due to borrowing in foreign currency. The
borrowing expense which could be directly attributable to purchase or production of assets
satisfying capitalization condition, starts capitalization when capital expenditure and borrowing
expense occur and when necessary purchase or production conducted for promoting assets to
reach the predicted available-for-use or available-for-sale state; and capitalization shall cease
when purchased or produced assets satisfying capitalization condition have reached the
predicted available-for-use or available-for-sale state. Other borrowing expense is recognized
as expense during the occurrence period.
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.
Assets satisfying capitalization principle generally refer to fixed assets, investment real
estate and inventories which can only arrive at predicted available-for-use and
available-for-sale state after quite a long time (generally over one year) in purchase or
production activities.
If abnormal interruption happens during purchase or production of assets satisfying
capitalization principle and the interruption lasts over 3 months, the capitalization for the
borrowing expense shall pause until the purchase or production restarts.
17. Intangible assets
The Company holds intangible assets including land use right, trademark, patent
technology and non-patent technology. Intangible assets are measured according to the
effective costs paid for obtaining the assets. For those intangible assets purchased in by the
Company, their effective cost consist of actual payment and relevant other expenditure; for the
intangible assets input by investors, effective cost is determined according to the value agreed
150
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
in investment contracts and agreements, while if the agreed value is not fair, then effective
value is confirmed according to fair value.
Land use right is averagely amortized according to its transfer term commencing from the
sate of transfer; trademark use-rights averagely amortized by 10 years; patent technology,
non-patent technology and other intangible assets is averagely amortized according to the
shortest of their predicted service life, beneficial term concluded by contract and effective term
regulated by laws. Amortization amount is recorded in assets cost and current gains and losses
relevant to beneficial objectives.
Re-examination on predicted service life and amortization method of the intangible assets
which have limited service life shall be conducted at the end of each year. If changed, it would
be treated as change of accounting estimation. Re-examination on predicted service life of
intangible assets which have uncertain service life shall be conducted. For any evidence
proving that service life of intangible assets is limited, then the service life shall be estimated
and the Company shall make amortization within the predicted service life period.
18. 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:
(1) Completions of the intangible assets make it available for application or sell in
technology;
(2) Equipped with plan to complete the intangible asset and apply or sell it;
(3) There is market for products produced with this intangible assets or the intangible
asset itself;
(4) Have sufficient technology, financial resource and other resources to support
development of the intangible assets, and have ability to apply or sell the assets;
(5) 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
151
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
listed in balance sheet as development expenditure, and transferred to intangible assets since
the project reaches at predicted utilization state.
19. Impairment of non-financial long-term assets
As at each balance sheet date, the Company has inspection on long-term equity investment,
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
20. Goodwill
Goodwill represents balance between equity investment cost or business combination cost
under no common control exceeding the attributable part or fair value of recognizable net assets
of party invested or purchased (obtained through business combination) as of acquisition day or
purchase day.
152
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
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.
21. Long-term deferred expenses
Long-term deferred expenses of the Company refer to the expense which has been paid
out while should be amortized from the current period and periods thereafter, with amortization
term over 1 year (excluding 1 year). Such expense is averagely amortized during the beneficial
period. If such long-term deferred expense could not bring benefit to following accounting
periods, the unamortized value of the item shall be fully transferred to current gains and losses.
22. 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, 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, 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 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
153
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
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.
23. Estimated liabilities
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.
24. Principle of recognition of revenue and measurement method
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 principle of recognition
of such revenue is as follows:
(1) Revenue from the sale of goods shall be recognized when the Company has
transferred to the buyer the significant risks and rewards of ownership of the goods; the
Company retains neither continuing managerial involvement to the degree usually associated
with ownership nor effective control over the goods sold; the amount of revenue can be
measured reliably; it is probable that the associated economic benefits will flow into the
Company; and the associated costs incurred or to be incurred can be measured reliably.
Air-conditioner OEM/ODM will recognize revenue while notes issued after commodity
transfer to the shipping space that appointed by the client.
(2) The Company confirms the realization of service income when the gross income and
total cost of labor service cab be unfailingly calculated, the economic benefits related to labor
service are likely to flow into the Group, and the progress of labor service can be confirmed
reliably. On balance sheet date, with regard to those with results provided for labor service
transactions can be estimated reliably, confirm the relevant service income according to
percentage of completion method and determine the percentage-of-completion method by the
proportion of the occurred cost in the estimated total cost; as for those with results provided for
labor service transactions can’t be estimated reliably and with occurred labor cost predicted to
be able to get compensation, confirm to provide service income according to labor cost
amount occurred and capable of getting compensation, and carry over the occurred labor costs;
for those with results provided for labor service transactions can’t be estimated reliably and
with occurred labor cost predicted to be not able to get compensation, reckon the occurred labor
cost in the current profits and losses, but not confirm to provide service income.
154
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
(3) The economy benefit of use-right of transfer assets probably wills inflow to the
Company, if the income can be measure accountability, than use-right income of transfer assets
recognized.
25. Government subsidies
Government subsidy at the Company be able to meet its attached conditions, and can be
confirmed when received. Government grants for monetary assets, in accordance with the
measurement of the amount actually received, according to a fixed quota for the allocation of
the grant criteria, in accordance with the amount of accounts receivable measurement;
government subsidies for non-monetary assets, in accordance with the fair value, fair value
should not reliably achieved, in accordance with the notional amount (RMB 1.00)
measurement.
Asset-related government grants recognized as deferred income, and average life of
related assets included in the current profit and loss distribution. With the proceeds of the
relevant government subsidies to compensate for the period after the relevant costs or losses
recognized as deferred income and, while recognizing the associated costs included in current
period profit and loss; for compensation related costs that have occurred or loss, directly gains
and losses included in the current period.
26. 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 assessable income (or
deductable losses), no corresponding deferred income tax assets and deferred income tax
liabilities will be recognized. As of the balance sheet date, deferred income tax assets and
deferred income tax liabilities are measured at the effective tax rate applicable to the period
when recovery of assets or settlement of liabilities occur.
The Company recognizes deferred income tax assets to the extent of future assessable
income tax which is likely to be obtained to offset deductable temporary difference, deductable
losses and tax credits.
155
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
27. Lease
The Company categorizes the lease into the financial lease and the operating lease.
The financial lease is the lease in which all risks and returns related to the ownership of
assets are transferred in substance. The Company as a lease holder, on the date of lease, the
financial lease is recognized as the fixed asset at lower cost of fair value of the rental asset and
the NPV of minimum payment of leasing. The minimum payment of leasing is recognized as
long-term payable and the difference is accounted into unrecognized financing expense.
The operating lease is the lease apart from the financial lease. The Company, as a lease
holder, accounts the rents into current period by straight line method during the term of the
lease. The Company, as a leaser, accounts the rental income into current period by straight line
method during the term of the lease.
28. Income tax accounting
The Company accounted the income tax in a method of debit in balance sheet. The income
tax expenses include income tax in the current year and deferred income tax. The income tax
associated with the events and transactions directly included in the owners’ equity shall be
included in the owners’ equity; and the deferred income tax derived from business combination
shall be included in the carrying amount of goodwill, except for that above, the income tax
expense shall be included in the profit or loss in the current period.
The income tax expense in the current year refers to the tax payable, which is calculated
according to the tax laws on the events and transactions incurred in the current period. The
deferred income tax refers to the difference between the carrying amount and the deferred tax
assets and deferred tax liabilities at the year-end recognized in the method of debit in the
balance sheet.
29. Segment information
Business segment was the major reporting form of the Company, which divided into 4
parts: air-conditioner, refrigerator and freezer, marketing 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.
30. 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
156
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
change of accounting estimation is recognized in the period the change occurs and future
periods.
The following accounting estimation and key assumption may result in material
adjustment to the book value of assets and liabilities in future period.
(1) Inventory impairment provision
The Company provides impairment provision according to the type of finished products
and goods delivered under fixed proportion, and estimates the realizable net value of
inventories by reference to the projected selling price of similar inventories less sales expenses
and related taxes on a regular basis, so as to evaluate the rationality of the provision proportion.
If the actual selling price or expense differs from the previous estimation, the management will
make corresponding adjustment to the proportion. The estimation results based on existing
experiences may differ from the latter actual results, which may result in adjustment to the
book value of inventories in the balance sheet and affect over the gains and losses of the period
when the estimation changes.
(2) Accounting estimation on long-term assets impairment provision
The Company makes impairment test on fixed assets such as buildings, machine and
equipments 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
157
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
The Company, at least at the end of each accounting year, reviews the projected usable life
and residual value rate of fixed assets and intangible assets. The projected usable life and
residual value rate are determined by the management based on the historical experiences of
similar assets by reference to the estimation generally used by the same industry with
consideration on projected technical upgrade. If material change occurs to previous estimation,
the Company shall accordingly adjust the depreciation expenses and amortization expenses for
future period.
(5) Projected liabilities arising from product quality guarantee
The Company commits to repair the major spare parts of refrigerators sold through
go-to-countryside promotion activity for free for ten years. As to the maintenance expenses that
may be increased arising from such commitment, the Company has provided projected
liabilities.
Taking into account the various uncertainties during the ten years, the Company considers
no discount factor of such projected liabilities. In stead, 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.
31. 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 including interest in
investee’s other comprehensive income which are measured under equity method and which
will be reclassified into gains and losses in future accounting periods upon satisfaction of
required conditions, gains or losses arising from change of fair value of available-for-sale
financial assets, gains or losses arising from reclassification of held-to-maturity investment into
158
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
available-for-sale financial assets, gains or losses occurred by cash flow hedging instruments
attributable to effective hedge, foreign currency financial statement translation difference, etc.
V. Taxation
(I) Major taxes (expenses) and tax rates
Tax(expenses) Tax base Tax rate
Income from sales of goods and from
VAT 17%
processing
Business tax Rental income and off-price expense 5%
Urban maintenance and
Turnover tax 5% or 7%
construction tax
Education surcharge Turnover tax 3%
Local education
Turnover tax 2%
surcharge
Corporate income tax Taxable income 15% or 25%
Original Book value of house
House Property Tax 1.2% or 12%
property×(1-30%)or annual rent income
Land use tax Actual land area used RMB 2.5/M2 to RMB 7 /M2
(II) Preferential tax and approval documents
The Company and its subsidiary Zhongke Meiling Cryogenics Technology Limited
Company were recognized as second Hi-Tech Enterprise for year of 2014 in Anhui Province
with term of three years. Therefore, the Company and its subsidiary Zhongke Meiling
Cryogenics Technology Co., Ltd. enjoys 15% rate for the income tax for State Hi-Tech
Enterprise. On 22 January 2015, being recognized by ―Name Lists of First Hi-Tech Enterprise
for year of 2014 in Anhui Province‖[WGQR(2014) No. 37] from Anhui Science & Technology
Department, the Company and Zhongke Meiling Cryogenics Technology Co., Ltd. continuous
to enjoy 15% rate for the income tax for State Hi-Tech Enterprise for three years term.
Subsidiary Zhongshan Changhong Electric Co., LTD. was recognized as First Hi-Tech
Enterprise for year of 2008 in Guangdong Province with 15% rate for the income tax for State
Hi-Tech Enterprise enjoys for term of three years. On 10 October 2014, being recognized by
Guangdong Science & Technology Department (identified No.: GR201444000246) ,
Zhongshan Changhong Appliance Co., Ltd. continuous to enjoy 15% rate for the income tax for
State Hi-Tech Enterprise for three years term.
Subsidiary Sichuan Changhong Air Conditioner Co., Ltd. approved the re-examination of
high-tech enterprise dated 25 December 2013, and was granted the ―Certificate of High-tech
Enterprise‖ (certificate No.: GR201051000154) with a maturity of three years. Being
approved and file by First Branch of Local Tax Bureau of Mianyang City, Sichuan Changhong
159
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
Air Conditioner Co., Ltd. was subject to enterprise income tax at a rate of 15%.
Subsidiary Mianyang Meiling Software Technology Co., Ltd. pass the software enterprise
certificate on 27 June 2014, and obtained the Software Enterprise Certification [Chuan
No.:R-2014-0072]. Calculating the promotion period since the year of profit-making, the 1st
year to 2nd year, the income tax shall be exempted, levy income tax based on half of the
statutory rates from the 3rd year to 5th year, and enjoy the preferential till expired
Subsidiary Mianyang Meiling Refrigeration Co., Ltd. passes the review approval from
Economic and Information Commission of Sichuan dated 9 May 2014, [Chuan Jing Xin
Industry Han (2014) No. 408], and recognized as industries to encourage regulated in
―Catalogue for Guiding Industry Restructuring‖ (2011 version) Amendment (National
Development and Reform Commission No. 21); Mianyang Meiling Refrigeration enjoys the
preferential tax policies of corporate income tax for West Development, being approved and
file by taxation bureau, Mianyang Meiling Refrigeration was subject to corporate income tax at
a rate of 15% in 7 years since 2014.
VI. Notes to the major items in the consolidated financial statements
With respect to the financial statements figures disclosed below, unless otherwise specified,
―period-beginning‖ refers to Jan. 1, 2015; ―period-end‖ refers to 30 June 2015; ―the Period‖
refers to Jan. 1 to June 30, 2015; ―the last Period‖ refers to refers to Jan. 1 to June 30, 2014; the
currency is RMB.
1. Monetary fund
Item Ending balance Opening balance
Cash 12,917.09 34,327.48
Bank deposit 2,729,498,557.95 2,602,664,703.52
Other Monetary fund 68,315,120.68 62,519,982.80
Total 2,797,826,595.72 2,665,219,013.80
Including: total amount deposited in overseas 7,572,563.96 7,023,527.63
Other monetary fund:
Item Ending amount
Bank acceptance deposits 41,315,336.85
Foreign currency for verification 18,650,880.83
Bank of deposit—pledge ticket for booking 13,244.51
Union Pay online 2,621,553.00
Taobao account 5,714,105.49
Total 68,315,120.68
160
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
Among other monetary funds, those not consider as the cash and cash equivalent refers to the RMB
28,475,300.51 bank acceptance margin over 3-month
2. Financial assets measured by fair value and reckoned into current gains/losses with their
changes
Item Ending amount Opening amount
Tradable financial assets 3,572,100.00 -
Including: Derivative financial assets * 3,572,100.00 -
Other - -
Specify as the financial assets measured by
fair value and reckoned into current - -
gains/losses with their changes
Other - -
Total 3,572,100.00 -
Derivative financial assets:
Fair value at
Item Note
period-end
Deliverable forward(NDF) 3,572,100.00 The NDF for $ 40 million
3. Notes receivable
(1) Category of notes receivable
Item Ending balance Opening balance
Bank acceptance bill 1,516,111,268.51 1,222,204,923.98
Trade acceptance 270,053,733.44 1,263,120.07
Total 1,786,165,001.95 1,223,468,044.05
(2) Notes receivable mortgaged by end of the period
Item Amount mortgaged by end of the period
Bankacceptance 234,375,733.20
(3) Note receivables endorsement or discount at year-end and are not expired on balance
sheet date
No termination
Termination confirmation
Item confirmation amount at
amount at year-end
year-end
Bankacceptance 2,976,011,490.55 -
(4)Notes transfer to account receivable due to the failure implementation from drawer at
period-end: Nil
4. Account receivable
(1) Account receivable by category
Category Ending amount
161
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
Book balance Bad debt provision
Percentage Percentag Book value
Amount Amount
(%) e (%)
Account receivable with single
significant amount and
- - - -
withdrawal single item bad debt
provision
Account receivable withdrawal
bad debt provision by - - - -
combination
Combination 1 1,698,673,047.09 81.47 91,365,726.45 5.38 1,607,307,320.64
Combination 2 386,001,580.12 18.51 - - 386,001,580.12
Combination Subtotal 2,084,674,627.21 99.98 91,365,726.45 5.38 1,993,308,900.76
Account receivable with single
minor amount but withdrawal 370,951.71 0.02 370,951.71 100.00 -
single item bad debt provision
Total 2,085,045,578.92 100.00 91,736,678.16 4.40 1,993,308,900.76
(Continued)
Opening amount
Category Book balance Bad debt provision
Percentage Percentag Book value
Amount Amount
(%) e (%)
Account receivable with single
significant amount and
- - - -
withdrawal single item bad debt
provision
Account receivable withdrawal
bad debt provision by - - - -
combination
Combination 1 1,001,798,140.69 82.31 56,282,407.74 5.62 945,515,732.95
Combination 2 211,449,366.71 17.37 211,449,366.71
Combination Subtotal 1,213,247,507.40 99.68 56,282,407.74 4.64 1,156,965,099.66
Account receivable with single
minor amount but withdrawal 3,878,543.12 0.32 651,365.78 16.79 3,227,177.34
single item bad debt provision
Total 1,217,126,050.52 100.00 56,933,773.52 4.68 1,160,192,277.00
(2) No account receivable with single significant amount and withdrawal single item bad
debt provision at period-end
(3) Account receivable with withdrawal bad debt provision for combination 1 by aging
account
Ending amount Opening amount
Item Provision Bad debt Provision Bad debt
Amount provision Amount provision
proportion proportion
Within 1
1,680,460,984.19 5% 84,023,049.21 987,327,112.39 5% 49,366,355.62
year
162
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
Ending amount Opening amount
Item Provision Bad debt Provision Bad debt
Amount provision Amount provision
proportion proportion
1-2 years 10,461,750.27 15% 1,569,262.54 8,222,166.64 15% 1,233,325.00
2-3 years 2,824,557.60 35% 988,595.16 251,693.39 35% 88,092.69
3-4 years 284,233.63 55% 156,328.50 479,555.01 55% 263,755.26
4-5 years 86,869.05 85% 73,838.69 1,244,893.93 85% 1,058,159.84
Over 5 years 4,554,652.35 100% 4,554,652.35 4,272,719.33 100% 4,272,719.33
Total 1,698,673,047.09 91,365,726.45 1,001,798,140.69 56,282,407.74
(4) Account receivable with no withdrawal bad debt provision for combination 2
Combination Book balance
Account connect with related parties 327,583,048.73
Letter of Credit 58,418,531.39
Total 386,001,580.12
(5) 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, three clients involved:
(6) No reversal of reserve for bad debts in the Period.
(7) No account receivable actually written-off in the Period.
(8) In the Year, top five receivables collected by arrears party amounting to RMB
1,039,269,871.68 in total, accounted for 49.84% of the receivables at balance of the year-end,
the bad debt provision accrual correspondingly amounting to RMB 40,228,098.14 at period-end
balance
(9) Details of account receivable from related parties found in XI(3)
5. Accounts paid in advance
(1) Age of account paid in advance
Ending amount Opening amount
Item Percentage
Amount Amount Percentage (%)
(%)
Within 1 year 95,315,648.00 92.98 90,498,929.82 97.83
1-2 years 6,218,014.43 6.07 1,080,459.71 1.17
2-3 years 179,349.17 0.17 367,366.72 0.40
Over 3 years 803,367.14 0.78 554,947.81 0.60
Total 102,516,378.74 100.00 92,501,704.06 100.00
Top 5 accounts paid in advance in balance at year-end amounting to RMB 49,899,330.04,
accounted for 48.67% of the account
163
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
(2) Account paid in advance for related party found in XI (III)
6. Interest payable
Item Ending balance Opening balance
Time deposit 582,870.63 -
Entrust loans - -
Bond investment - -
Total 582,870.63 -
7. Other account receivable
(1) Category of other account receivable
Ending amount
Book balance Bad debt provision
Category
Percentag Percentage Book value
Amount Amount
e (%) (%)
Other account receivable with single
significant amount and withdrawal - - - -
single item bad debt provision
Other account receivable withdrawal
- - - -
bad debt provision by combination
Combination 1 8,743,186.20 20.49 2,848,213.59 32.58 5,894,972.61
Combination 2 33,870,556.94 79.38 - 33,870,556.94
Combination Subtotal 42,613,743.14 99.87 2,848,213.59 6.68 39,765,529.55
Other account receivable with single
minor amount but withdrawal single 56,178.00 0.13 56,178.00 100.00 -
item bad debt provision
Total 42,669,921.14 100.00 2,904,391.59 6.81 39,765,529.55
(Continued)
Opening amount
Book balance Bad debt provision
Category
Percentag Percentag Book value
Amount Amount
e (%) e (%)
Other account receivable with single
significant amount and withdrawal - - - - -
single item bad debt provision
Other account receivable withdrawal
- - - - -
bad debt provision by combination
Combination 1 9,411,515.36 29.25 3,211,084.50 34.12 6,200,430.86
Combination 2 22,528,897.94 70.02 - - 22,528,897.94
Combination Subtotal 31,940,413.30 99.27 3,211,084.50 10.05 28,729,328.80
Other account receivable with single
minor amount but withdrawal single 234,079.31 0.73 234,079.31 100 -
item bad debt provision
164
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
Opening amount
Book balance Bad debt provision
Category
Percentag Percentag Book value
Amount Amount
e (%) e (%)
Total 32,174,492.61 100 3,445,163.81 10.71 28,729,328.80
(2)No significant other account receivable and no withdrawal bad debt provision single at
period-end.
(3)Other account receivable with withdrawal bad debt provision for combination 1 by
aging account
Ending amount Opening amount
Item Provision Bad debt Provision Bad debt
Amount provision Amount provision
proportion proportion
Within 1 year 2,017,744.85 5% 100,887.24 2,351,526.09 5% 117,576.30
1-2 years 1,237,874.17 15% 185,681.13 847,086.25 15% 127,062.94
2-3 years 4,018,962.50 35% 1,406,636.88 4,107,832.50 35% 1,437,741.38
3-4 years 656,980.00 55% 361,339.00 1,224,148.09 55% 673,281.45
4-5 years 119,702.25 85% 101,746.91 170,000.00 85% 144,500.00
Over 5 years 691,922.43 100% 691,922.43 710,922.43 100% 710,922.43
Total 8,743,186.20 2,848,213.59 9,411,515.36 3,211,084.50
(4) Other account receivable with no withdrawal bad debt provision for combination 2
Combination Book balance
Contact with related party 156,000.00
Employee’s reserve loans 13,712,878.53
Export tax rebate receivable 20,001,678.41
Total 33,870,556.94
(5) 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, three clients involved:
(6)No reversal (or withdraw) of reserve for bad debts in the Year.
(7) Classification of other accounts receivable according to the nature of account
Nature Book balance at year-end Book balance at year-begin
Non-consolidated related party 156,000.00 13,500.00
Employee’s reserve loans 13,712,878.53 15,396,501.21
Deposit 7,481,406.21 6,479,826.61
Other 699,768.91 1,332,919.97
Advance money temporary 221,209.08 868,700.00
Export rebates 20,001,678.41 7,118,896.73
165
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
Deposit of migrant works wages 396,980.00 964,148.09
Total 42,669,921.14 32,174,492.61
(8) Top 5 other receivables collected by arrears party at balance of year-end
Bad
Proportion in total Balance at
Name Nature ofaccount Ending balance Bookage other receivables year-end
at year-end of debt
provision
Zhongshan Internal Within 1
Export rebates 12,932,140.17 30.31% -
Revenue Service year
Hefei Internal Revenue Within 1
Export rebates 7,069,538.24 16.57% -
Service year
Within 1
Pu Lingqiao Reserve fund 998,842.97 2.34% -
year
Within 1
Li Xianping Reserve fund 830,000.00 1.95% -
year
Within 1
Zhou Bin Reserve fund 830,000.00 1.95% -
year
Total 22,660,521.38 53.11%
(9) Other account receivable involved government subsidies: Nil
(10) Other receivables terminated recognization due to the transfer of financial assets: nil
(11) Assets and liability transfer other receivables and continues to involve: nil
8. Inventories
(1)Classification of inventories
Ending amount
Item Impairment
Book balance Book value
provision
Rawmaterials 91,676,762.72 196,251.67 91,480,511.05
Stockcommodities 1,352,477,521.37 70,469,651.70 1,282,007,869.67
Low value consumable articles 9,370,400.02 - 9,370,400.02
Goodsin transit 106,402,837.38 809,714.18 105,593,123.20
Goods-in-process 27,423,907.80 - 27,423,907.80
Deferred expense for moulds 31,698,964.28 - 31,698,964.28
Total 1,619,050,393.57 71,475,617.55 1,547,574,776.02
(Cont.)
Opening amount
Item Impairment
Book balance Book value
provision
Rawmaterials 107,161,337.95 271,868.17 106,889,469.78
Stockcommodities 1,540,132,511.00 73,008,115.56 1,467,124,395.44
Low value consumable articles 18,346,189.76 - 18,346,189.76
Goodsin transit 107,492,452.70 1,934,302.89 105,558,149.81
166
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
Opening amount
Item Impairment
Book balance Book value
provision
Goods-in-process 33,074,721.00 - 33,074,721.00
Deferred expense for moulds 34,768,482.07 - 34,768,482.07
Total 1,840,975,694.48 75,214,286.62 1,765,761,407.86
(2)Inventory falling price reserves
Decreased
Item Opening amount Increased Switch-ba Ending amount
Other switch-out
ck
Raw materials 271,868.17 2,771.00 - 78,387.50 196,251.67
Stock
73,008,115.56 974,759.76 - 3,513,223.62 70,469,651.70
commodities
Goods in transit 1,934,302.89 49,184.31 - 1,173,773.02 809,714.18
Total 75,214,286.62 1,026,715.07 - 4,765,384.14 71,475,617.55
9. Finance asset available for sales
(1)Finance asset available for sales
Ending balance Opening balance
Item Impairme Impairmen
Book balance Book value Book balance Book value
nt loss t loss
Equity instrument available for
5,000,000.00 5,000,000.00 5,500,000.00 - 5,500,000.00
sales
Including: measured by fair value - - - - -
Measured by cost 5,000,000.00 5,000,000.00 5,500,000.00 - 5,500,000.00
Total 5,000,000.00 5,000,000.00 5,500,000.00 - 5,500,000.00
(2)Finance asset available for sales measured by cost at year-end
Cash
Increase Holding
Period-begi Decrease in dividend
Invested unit in the Period -end proportion in
n the year for the
year invested unit
year
Huishang Bank Co., Ltd. 5,000,000.00 - - 5,000,000.00 0.097%
Fuyang Weiao Meiling Appliance
500,000.00 - 500,000.00 - -
Marketing Co., Ltd.※
Total 5,500,000.00 - 500,000.00 5,000,000.00
In reporting period, Fuyang Weiao Meiling Appliance Marketing Co., Ltd. changed its name to Fuyang Weiao Meiling
Appliance Marketing Co., Ltd. and completed the registration change of Industry & Commerce
(3)Impairment reserve of finance asset available for sales: Nil
167
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
10. Long-term equity investment
Change in the period
Ending
Provis balance
Opening Investment Other Other
Invested unit Disin Declaration of ion Ending balance of
balance Additional profit and loss comprehensi chang Oth
vestm cash dividends for impairm
investment confirmed by ve income es of er
ent or profits impai ent loss
equity method adjustment equity
rment
Associated companies
1.ChanghongRubaElectricCompany
1,139,219.28 30,129,956.00 - 915,477.85 -190,798.40 - - - - 31,993,854.73 -
(Private)Ltd.
2.Hefei Xingmei Assets Management Co.,
13,071,784.93 - - -161,530.37 - - - - - 12,910,254.56 -
Ltd.
3.Sichuan Ejar Network Technology Co.,
- 15,000,000.00 - -6,416,155.32 - - - - - 8,583,844.68 -
Ltd.
4.Sichuan Tianyou Guigu Technology Co.,
- 25,000,000.00 - -391,719.22 - - - - - 24,608,280.78 -
Ltd.
Total 14,211,004.21 70,129,956.00 - -6,053,927.06 -190,798.40 - - - - 78,096,234.75 -
168
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
11. Investment properties
(1)Investment properties measured at costs
Houses and Land use
Item Total
buildings rights
I. Original book value
1.Opening balance 23,142,172.83 916,691.38 24,058,864.21
2.Increased in the year - - -
(1)outsourcing - - -
(2)stock\fixed assets\Construction in progress
- - -
transfer-in
(3)increase of enterprise merger - - -
3.Decreased in the year - - -
(1)dispose - - -
(2)other transfer-out - - -
4.Ending balance 23,142,172.83 916,691.38 24,058,864.21
II. Accumulated depreciation and
accumulated amortization
1.Opening balance 8,788,007.66 378,060.93 9,166,068.59
2.Increased in the year 385,106.79 19,184.28 404,291.07
(1)provision or amortization 385,106.79 19,184.28 404,291.07
3.Decreased in the year
(1)dispose
(2)other transfer-out
4.Balance at year-end 9,173,114.45 397,245.21 9,570,359.66
III. Impairment loss
1.Opening balance - - -
2.Increased in the year - - -
(1)provision - - -
3. Decreased in the year - - -
(1)dispose - - -
(2)other transfer-out - - -
4.Balance at year-end - - -
IV. Book value
1.Book value at year-end 13,969,058.38 519,446.17 14,488,504.55
2.Book value at year-begin 14,354,165.17 538,630.45 14,892,795.62
(2)Investment real estate measured by fair value: Nil
(3)Particular about mortgage of investment property: Nil
(4) Investment real estate has not completed the property right certificate: Nil
169
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
12. Fixed assets
(1)Details of fixed assets
Houses and Mechanical Transport Others
Item Total
buildings equipment equipment equipment
I. Original book value
1.Opening balance 836,740,766.13 958,392,783.27 25,263,127.02 146,276,936.85 1,966,673,613.27
2.Increased in the year 36,939,101.68 57,364,194.63 1,161,675.19 7,622,553.73 103,087,525.23
(1)purchase 645,666.05 1,823,382.42 873,982.90 758,091.11 4,101,122.48
(2)Construction in progress
36,293,435.63 55,540,812.21 287,692.29 6,559,138.52 98,681,078.65
transfer-in
(3)increase of enterprise
- - - - -
merger
(4)inventory transfer-in - - - 305,324.10 305,324.10
(5)increase of exchange rate - - - - -
3.Decreased in the year - 74,620,183.72 814,569.04 1,271,985.53 76,706,738.29
(1)dispose or retirement - 74,097,696.32 814,569.04 1,271,985.53 76,184,250.89
(2)transfer Construction in
- 522,487.40 - - 522,487.40
progress
(3)decrease of enterprise
- - - - -
merger
(4)other decrease - - - - -
4.Ending balance 873,679,867.81 941,136,794.18 25,610,233.17 152,627,505.05 1,993,054,400.21
II.Accumulated
- - - - -
depreciation
1.Opening balance 123,227,113.01 542,609,362.47 16,447,345.32 56,052,690.94 738,336,511.74
2.Increased in the year 15,022,679.82 45,196,565.20 950,859.74 8,077,911.37 69,248,016.13
(1)provision 15,022,679.82 45,196,565.20 950,859.74 8,077,911.37 69,248,016.13
(2)increase of assets
- - - - -
reclassification
(3)increase of enterprise
- - - - -
merger
3.Decreased in the year - 67,150,737.39 588,599.80 1,151,148.17 68,890,485.36
(1)dispose or retirement - 67,147,276.54 588,599.80 1,151,148.17 68,887,024.51
(2)transfer Construction in
- 3,460.85 - - 3,460.85
progress
(3)decrease of enterprise
- - - - -
merger
4.Ending balance 138,249,792.83 520,655,190.28 16,809,605.26 62,979,454.14 738,694,042.51
III. Impairment loss - - - - -
1.Opening balance 1,240,639.77 3,114,942.24 15,166.17 202,432.49 4,573,180.67
2.Increased in the year - - - - -
(1)provision - - - - -
3.Decreased in the year - 1,164,573.06 - 2,744.79 1,167,317.85
170
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
Houses and Mechanical Transport Others
Item Total
buildings equipment equipment equipment
(1)dispose or retirement - 1,164,573.06 - 2,744.79 1,167,317.85
4.Ending balance 1,240,639.77 1,950,369.18 15,166.17 199,687.70 3,405,862.82
IV Book value
1.Book value at year-end 734,189,435.21 418,531,234.72 8,785,461.74 89,448,363.21 1,250,954,494.88
2.Book value at year-begin 712,273,013.35 412,668,478.56 8,800,615.53 90,021,813.42 1,223,763,920.86
(2) Fixed assts temporary idle: Nil
(3) Fixed assets for collateral: Nil.
(4) Fixed assets leased through operating lease: Nil
(5) Fixed assets leased through operating lease
Original book Accumulated
Item Impairment loss Net book value
value depreciation
Mechanical
37,905.00 28,810.87 - 9,094.13
equipment
Transport
197,640.00 187,758.00 - 9,882.00
equipment
Other equipment 37,424,967.04 5,374,815.25 - 32,050,151.79
Total 37,660,512.04 5,591,384.12 - 32,069,127.92
(6)Fixed assts without property certificate (House and buildings)
Assets Original value
7#Freezer Plant 34,752,958.49
8#Freezer Plant 31,939,378.09
9#Freezer Plant 36,896,570.19
3#Big refrigerator Plant 91,724,056.07
3#Big refrigerator finished-goods Plant 49,997,543.01
Canteen 2,415,806.73
3# makeshift shelter 5,689,907.18
4# makeshift shelter 6,651,069.97
5# makeshift shelter 5,140,247.60
6# building for cadremen 8,936,534.60
7# building for cadremen 8,221,302.20
8# makeshift shelter 5,178,824.74
Phase II canteen in living quarters 25,928,794.67
Total 313,472,993.54
For individual acceptance procedure not done for the above house and buildings, no
property certificate has been done temporary.
(7)Fixed assets ready for sale at year-end: Nil
171
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
13. Construction in progress
(1)Details of construction in progress
Ending amount Opening amount
Impa
Impai
Item irme
Book rment Book
Book value nt Book value
balance provi balance
provi
sion
sion
Construction project of Phase II for 18,466,267.3 18,466,267.3
1,325,050.00 1,325,050.00 -
matching life district of Industrial Park 8 8
Efficiency improvement project for manufarue 2nd
- - - 1,092,770.90 - 1,092,770.90
plant DE line
Project of mid-large volume environment icebox 15,222,608.2 15,222,608.2
2,838,270.04 - 2,838,270.04 -
production annual output for 0.6 million 6 6
Relocation and capacity expansion
1,238,654.41 1,238,654.41 24,578.48 24,578.48
project of Zhongke Meiling
Capacity expansion of energy-saving
and environmental refrigerator with 390,874.60 - 390,874.60 564,428.79 - 564,428.79
annual output of 2 millions sets
12,065,564.7 12,065,564.7 11,249,312.1 11,249,312.1
Equipments pending for installation - -
9 9 9 9
Technical innovation project of
292,802.31 - 292,802.31 2,400,855.08 - 2,400,855.08
Zhongshan Changhong
10,084,308.7 10,084,308.7 13,745,886.4 13,745,886.4
Other miscellaneous items - -
5 5 9 9
28,235,524.9 28,235,524.9 62,766,707.5 62,766,707.5
Total - -
0 0 7 7
(2) Depreciation reserves for construction in process: Nil
14. Disposal of fixed assets
Reasons for disposal
Item Ending amount Opening amount
transferred
Relocation for land
Relevant assets disposal for reserved lands 75,734,875.15 75,808,843.84
reserve
Pursuant to the urban planning requirements of the People’s Government of Hefei city,
Hefei Land Reserve Center plans to purchase and store the land use right of an integrated
economic development zone of the Company located at Longgang of Hefei with an area of
103,978.9 sq.m. (Approximately 155.9684 mu, Land Use Right Certificate No.: Dong Guo
Yong (2004) Zi No. 0200, the stated use of the land is for industrial purpose). The estimated
consideration for purchasing and storage is RMB74.48 million. The land is mainly used for the
Company’s warehouse, product finishing workshop and the factory of Zhongke Meiling.
Pursuant to the purchasing and storage requirements of land use right, the land will be
purchased and stored with vacant possession. In April 2013, the Company completed the
relocation of occupants of the premises, and the net fixed assets in relation to the land will
transfer as disposal, accounting treatment will be conduct in line with relevant rules upon
172
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
receiving of the relocation compensation.
Pursuant to the urban planning requirements of Hefei Municipal Government and the
Government of Feidong county, the land reserve center of Feidong county will purchase and
store the land use right of an economic development zone located at Feidong county, Hefei city,
which is owned by the Company’s subordinate companies, Equator Electric and Equator Home
Appliance, respectively, with an area of 19,245.09 sq.m. (Approximately 28.87 mu, Land Use
Right Certificate No.: Dong Guo Yong (2008) No. 0366, the stated use of the land is for
industrial purpose) and an area of 46,161.9 sq.m. (Approximately 69.24 mu, Land Use Right
Certificate No.: Dong Guo Yong (2008) No. 0367, the stated use of the land is for industrial
purpose). The total consideration for purchasing and storage is approximately RMB36 million,
of which the consideration for the land use right owned by Equator Electric and Equator Home
Appliance is approximately RMB10.59 million and RMB25.41 million, 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.
15. Intangible assets
(1) According to intangible assets item
Trademark special Non-patent
Item Land use right Total
right technology
I. Original book value
1.Opening balance 593,245,146.16 283,292,439.34 87,563,002.33 964,100,587.83
2.Increased in the year 13,056,121.02 - 12,197,907.57 25,254,028.59
(1)purchase 13,056,121.02 - - 13,056,121.02
(2)internal R&D - - 12,197,907.57 12,197,907.57
3.Decreased in the year - - - -
(1)dispose - - - -
4.Ending balance 606,301,267.18 283,292,439.34 99,760,909.90 989,354,616.42
II.Accumulated
amortization
1.Opening balance 90,563,381.46 263,193,530.64 48,479,466.10 402,236,378.20
2.Increased in the year 6,318,793.46 2,435,320.14 7,560,859.41 16,314,973.01
(1)Accrual 6,318,793.46 2,435,320.14 7,560,859.41 16,314,973.01
3.Decreased in the year - - - -
(1)dispose - - - -
4.Ending balance 96,882,174.92 265,628,850.78 56,040,325.51 418,551,351.21
III. Impairment loss
1.Opening balance - - - -
2.Increased in the year - - - -
(1)Accrual - - - -
173
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
Trademark special Non-patent
Item Land use right Total
right technology
3.Decreased in the year - - - -
(1)dispose - - - -
4.Ending balance - - - -
IV. Book value
1. Ending book value 509,419,092.26 17,663,588.56 43,720,584.39 570,803,265.21
2. Opening book value 502,681,764.70 20,098,908.70 39,083,536.23 561,864,209.63
(2) As of the end of 2015, mortgage of intangible assets is as follows:
Name Property certificate serials Area(M2) Net book value Note
Land use right HGYJCZi No.: 0121 27,120.22 21,052,438.69 See Note VI .30
16. Development expense
Increase during the year Decrease during the year
Opening Included in Ending
Item Internal
balance current Confirmed as balance
development other Other
profits and intangible assets
expenditure
losses
Technology
development 24,684,278.08 17,981,068.39 - - 12,197,907.57 - 30,467,438.90
for Air-conditioner
Technology
development 509,879.01 7,643,385.50 - - - - 8,153,264.51
for refrigerator
Total 25,194,157.09 25,624,453.89 - - 12,197,907.57 - 38,620,703.41
17. Goodwill
(1) Original value of goodwill
Assets group/Unit Goodwill Impairment loss Net value
Hefei Meiling Group Holding Co., Ltd. not under the
10,922,803.73 10,922,803.73 -
same control merger
Guangxi Huidian Household Electrics Co., Ltd not
5,313,913.50 - 5,313,913.50
under the same control merger
Total 16,236,717.23 10,922,803.73 5,313,913.50
(2) Impairment provision of goodwill
Decrease
Increase
Opening during
Assets group/Unit during the Ending balance
balance the
period
period
Hefei Meiling Group Holding Co., Ltd. not under the
10,922,803.73 - - 10,922,803.73
same control merger
18. Deferred income tax assets and deferred income tax liabilities
(1) Deferred income tax assets
Item Ending balance Opening balance
174
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
Deductible Deferred Deductible Deferred
temporary income tax temporary income tax
difference assets difference assets
Deferred income tax assets recognized from
129,192,898.46 19,666,140.58 107,473,949.07 16,242,800.33
property depreciation preparation
Deferred income tax assets recognized from
342,633,453.84 51,395,018.08 347,107,686.15 52,066,152.92
accrual liability
Deferred income tax assets recognized from
47,518,488.66 7,127,773.30 47,406,511.04 7,110,976.66
Dismission welfare
Deferred income tax assets recognized from
38,193,913.68 5,729,087.05 23,778,399.30 3,566,759.90
deferred income
Deferred income tax assets recognized from
24,780,000.00 3,717,000.00 32,186,723.32 4,828,008.50
provision performance incentive
Deferred income tax assets recognized from
-3,572,100.00 -535,815.00 81,170.00 12,175.50
changes in the fair value
Total 578,746,654.64 87,099,204.01 558,034,438.88 83,826,873.81
(2) Set-off details
Ending balance Opening balance
Item Deductible Deductible
Deferred income Deferred income
temporary temporary
tax assets tax assets
differences differences
Changes of fair value -3,572,100.00 -535,815.00 81,170.00 12,175.50
(3) Details of unrecognized deferred income tax assets
Item Ending balance Opening balance
Deductible temporary difference 37,958,555.66 31,224,787.59
Deductible loss 251,488,670.25 270,797,755.64
Total 289,447,225.91 302,022,543.23
19.Other non-current assets
Item Ending balance Opening balance
Time deposit 41,633,616.00 -
20.Short-term loans
(1)Types of short-term loans
Type of loans Ending balance Opening balance
Loan in pledge 40,032,241.87 34,266,400.00
Loan in credit 316,602,650.78 373,242,339.07
Total 356,634,892.65 407,508,739.07
(2) New loans in the Year:
1) The Company entered into the Import Trade Financing Contract with international
department of Anhui Branch of BOCOM, loans period from April 2015 to July 2015; balance at
period-end amounting to $ 198,860.70
2) The Company entered into the Import Trade Financing Contract with international
175
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
department of Anhui Branch of BOCOM, loans period from 24 April 2015 to 21 August 2015;
balance at period-end amounting to $ 6,000,000.00
3) The Company entered into the TF Comprehensive Credit Agreement with Hefei Branch
of CEB, loans period from January 2015 to July 2015, from March 2015 to July 2015, from
April 2015 to July 2015 and from April 2015 to August 2015, the total balance at period-end
accounting to $ 19,110,000.00.
4) The Company entered into the ―O/A Cooperation Agreement‖ with Hefei Luyang
Branch of China Construction Bank, loans period from April 2015 to July 2015, the total
balance at period-end accounting to $ 12,000,000.00.
5) The Company entered into the ―O/A Cooperation Agreement‖ with Hefei Luyang
Branch of China Construction Bank, loans period from April 2015 to August 2015, the total
balance at period-end accounting to $ 4,500,000.00.
6) subsidiary of the Company Zhongshan Changhong entered into the Account
Receivables Secured Borrowings Contract with Zhongshan Nantou Branch of ICBC, loans
period from 13 January 2015 to 2 July 2015 with 6 months terms; borrowing amounting to
$ 2.9 million, equivalence RMB 17,729,440.000; secured receivables have book value of
$2,966,639.20, equivalence RMB 18,136,845.4; the borrowings have paid due on 2 July 2015.
7) subsidiary of the Company Zhongshan Changhong entered into the Account
Receivables Secured Borrowings Contract with Zhongshan Nantou Branch of ICBC, loans
period from 12 June 2015 to 12 December 2015 with 6 months terms; borrowing amounting to
$ 3,648,063.64, equivalence RMB 22,302,801.87; secured receivables have book value of
$ 3,802,422.40, equivalence RMB 23,246,489.58
8) Subsidiary Hefei Meiling Group Holding Co., Ltd. open a domestic letter of credit in
Anhui Branch of Bank of Communications dated 25 March 2015, the RMB amount was 61
million Yuan with 6-month period, and expired on 21 September 2015.
21. Financial liabilities at fair value through gains and losses
Item Ending balance Opening balance
Transaction financial liabilities - 81,170.00
Including: issuance of transaction nomds - -
Derivative financial liabilities - 81,170.00
Other - -
Specified as financial liabilities at fair value through gains and losses - -
Total - 81,170.00
22. Notes payable
Type Ending balance Opening balance
Bank acceptance bill 2,334,117,842.78 1,524,218,423.10
176
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
Type Ending balance Opening balance
Trade acceptance 304,012,400.00 28,891,869.45
Total 2,638,130,242.78 1,553,110,292.55
There are no notes expired without paid in above mentioned ending balance
23. Account payable
(1) Age of account payable
Item Ending balance Opening balance
Total 1,921,548,794.47 1,681,116,965.38
Including: over 1 year 36,417,335.93 23,178,949.48
(2) Account payable with over one year book age
Reasons of un-paid or
Name of unit Ending balance
carry-over
Taizhou Wendefu Plastic Mode Co., Ltd. 1,720,500.00 Quality guarantee deposit
Anhui Jianhai Construction Engineering Co., Ltd. 1,178,871.58 Quality guarantee deposit
Total 2,899,371.58 -
(3) Account payable for related parties found in XI(III)
24. Account received in advance
(1) Age of account received in advance
Item Ending amount Opening amount
Total 250,150,216.76 296,641,377.09
Including: over 1 year 41,722,525.58 57,986,602.90
(2) Account received in advance with over one year book age
Reasons of un-paid or
Name of unit Balance at year-end
carry-over
Client 1 2,180,000.00 Has not been settled
Client 2 1,057,783.00 Has not been settled
Total 3,237,783.00
(3) Account receivable from related parties found in XI(III)
25. Wages payable
(1) Types of wages payable
Increase in this Decrease in this
Item Opening balance Ending balance
period period
Short-term compensation 133,622,710.39 429,569,633.35 470,132,636.58 93,059,707.16
After-service welfare- defined
15,825,456.47 36,891,638.49 47,421,102.54 5,295,992.42
contribution plans
Dismiss welfare 7,089,045.43 4,059,202.49 4,056,679.77 7,091,568.15
Other - - - -
177
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
Increase in this Decrease in this
Item Opening balance Ending balance
period period
Total 156,537,212.29 470,520,474.33 521,610,418.89 105,447,267.73
(2) Short-term compensation
Increase in this Decrease in this
Item Opening balance Ending balance
period period
Wages ,bonuses, allowancesand subsidies 91,313,294.35 375,395,782.44 411,220,005.18 55,489,071.61
Welfare for workers and staff 98,695.00 18,674,473.32 18,424,530.32 348,638.00
Social insurance 3,015,479.67 15,532,746.51 14,834,409.72 3,713,816.46
Including: Medical insurance 2,756,406.75 13,447,236.32 12,694,434.36 3,509,208.71
Work injury insurance 113,865.97 1,213,896.25 1,219,518.17 108,244.05
Maternity insurance 145,206.95 871,613.94 920,457.19 96,363.70
Housing accumulation fund 5,856,388.08 20,047,867.43 17,320,736.42 8,583,519.09
Labor union expenditure and
1,152,129.97 -81,236.35 926,231.62 144,662.00
personnel education expense
Short-termabsencewith pay - - - -
Short-termprofitsharingplan 32,186,723.32 - 7,406,723.32 24,780,000.00
Other - - - -
Total 133,622,710.39 429,569,633.35 470,132,636.58 93,059,707.16
In the Period, the incentive amount has been adjusted correspondingly in line with the
―Distribution plan of the Performance incentive fund for year of 2014‖ that deliberated and
approved in first extraordinary general meeting of 2015
The Company withdrew the outstanding salary, bonus and subsidy from the closing
balance of staff salary payables which were granted in the Period
(3) Defined contribution plans
Increase in this Decrease in this
Item Opening balance Ending balance
period period
Basic endowment
14,922,593.36 34,292,620.68 44,848,854.60 4,366,359.44
insurance
.Unemployment insurance 902,863.11 2,599,017.81 2,572,247.94 929,632.98
Total 15,825,456.47 36,891,638.49 47,421,102.54 5,295,992.42
26. Tax payable
Item Ending balance Opening balance
Value-added tax 87,477,896.12 5,453,680.54
Business tax 103,067.15 241,751.51
Enterprise income tax 9,934,621.57 18,942,889.47
Individual income tax 4,375,557.94 1,479,738.78
Urban maintenance and construction tax 2,594,208.97 2,594,882.87
House property tax 4,675,933.15 4,475,549.98
Land-use right tax 4,436,568.34 4,256,449.87
178
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
Item Ending balance Opening balance
Educational surtax 1,871,187.49 1,854,826.07
Stamp tax 692,402.21 1,789,821.03
Construction fund of Water Conservancy Projects 441,137.89 491,300.68
Treatment fund for abandon electric & electronics products 15,599,335.00 8,097,219.00
Other 1,940,354.91 1,475,240.38
Total 134,142,270.74 51,153,350.18
Tax payable at period-end has major growth over beginning of the year mainly because
during the peak season, payable VAT increased over that of year-begin
27 Dividends payable
Item Ending balance Opening balance
Sichuan Changhong Electric Co., Ltd.a) 9,889,699.80 -
Hefei Minzhu Branch of Agricultural Bank of China b) 462,138.81 412,524.09
City Insurance company 302,954.85 229,180.05
Bank of Communications, Hefei Branch 153,697.50 153,697.50
Huishang Bank Co., Ltd. 103,333.85 103,333.85
Hefei Technology Bank 92,088.75 92,088.75
Other piecemeal units 1,588,294.60 1,246,816.67
Total 12,592,208.16 2,237,640.91
Payable dividend at year-end refers to the common dividends that not receiving by
shareholders
a) refers to the dividend not withdrawal by Sichuan Changhong Appliance at period-end,
and the Company has paid the dividend on 3 July 2015
b) The court ruled that the stock rights held by original Entrust Hefei Office of Provincial
ABC are share by Hefei Minzhu Branch of Agricultural Bank of China, and the ownership has
completed on 14 January 2015
28. Other account payable
(1) Classification of other payable according to nature of account
Nature Ending balance Opening balance
1. Accrued expenses(expenses occurred without reimbursed) 803,924,138.90 775,705,911.82
2. receivables received temporary and deducted temporary 41,952,127.00 46,001,012.19
3.deposit, margin 47,450,567.61 35,889,023.53
4.not the come-and-go with related parties in statement scope 23,005,053.48 5,743,253.29
5.other 9,284,556.94 9,386,506.85
Total 925,616,443.93 872,725,707.68
(2) Large other payable with over one year age
179
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
Reasons of un-paid or
Name Ending balance
carry-over
Hefei Tongchuang Construction Engineering Co., Ltd. 1,110,000.00 Performance bond
Mianyang Highly Electric Co., Ltd. 527,934.86 Procurement margin
Total 1,637,934.86
29. Non-current liability due within one year
(1) Classification of non-current liability due within one year
Item Ending balance Opening balance
Long-term loans due within one year - -
Deferred income transfer to gains and losses within one year 11,153,513.56 11,153,512.52
Total 11,153,513.56 11,153,512.52
(2) Deferred income transfer into profit and loss within 1 year
Subsidy Amount
increase reckoned into
Opening Other Assetsrelated/Benefit
Itemofgovernment subsidies during non-operation Ending amount
amount changes related
this revenue in the
period Period
Demolition compensation
1,797,880.32 - 898,940.16 898,940.16 1,797,880.32 Assets related
of Jiangxi Meiling
Demolition compensation
2,467,448.08 - 1,233,724.77 1,233,725.81 2,467,449.12 Assets related
of Hefei Meiling
technical reform for Athena
4,286,250.00 - 2,143,125.00 2,143,125.00 4,286,250.00 Assets related
Project
Freezer project of Hefei
734,062.52 - 367,031.26 367,031.26 734,062.52 Assets related
Meiling
New generation of intelligent
energy-saving AC and 1,700,000.00 - - - 1,700,000.00 Assets related
industrialization forkeyapponents
Adaptability improvement
R290/D52/13-R290 project for 167,871.60 - 83,935.80 83,935.80 167,871.60 Assets related
production of FTXS
Relocation of the production base of
- - 146,017.75 146,017.75 - Assets related
Mianyang
Total 11,153,512.52 - 4,872,774.74 4,872,775.78 11,153,513.56
The deferred income transfer to gains/losses in the Year refers to the deferred income
transfer to the non-current liability due within one year, which will expected to amortized next
year
30. Long-term loans
(1)Classification of long-term loans
Type Ending amount Opening amount
Loan in pledge 41,107,846.40 11,014,200.00
Loan in mortgage 3,840,000.00 4,480,000.00
Loan in assurance - -
Loan in credit 3,452,800.00 3,452,800.00
180
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
Type Ending amount Opening amount
Total 48,400,646.40 18,947,000.00
(2) Details of long-term loans at period –end
Borrowing Returning Foreign Interest Ending amount Opening amount
Loan unit
day day currency rate (RMB) (RMB)
Zhongshan Branch of
Guangdong 2014-12-24 2017-12-24 USD 3.20% 11,004,480.00 11,014,200.00
Development Bank Note1
Zhongshan Branch of
Guangdong 2015-01-06 2018-01-06 USD 3.20% 30,103,366.40 -
Development Bank Note2
Ministry of Finance of
2002-11-21 2017-11-20 RMB 3.05% 1,952,800.00 1,952,800.00
HefeiNote3
Ministry of Finance of
2004-12-10 2019-12-10 RMB 3.05% 1,500,000.00 1,500,000.00
HefeiNote4
Ministry of Finance of
2006-11-9 2021-11-8 RMB 3.30% 3,840,000.00 4,480,000.00
HefeiNote5
Total 48,400,646.40 18,947,000.00
Note1: On 24 December 2014, the Company entered into Foreign Currency
Mid-Long-term Loan Contract with Zhongshan Branch of Guangdong Development Bank,
agreed that issuing foreign currency USD1, 800,000.00 to the Company with loans term of 3
years, and annual interest rate of 3.2%. The pledge refers to the USD 1.82 million deposit for a
long time; interest of the loans calculated from 24 December 2014, the 20th of end of the
quarterly is the expiry date for interest, 21st is the payment date. The loans are contribute for
the joint venture project in Pakistan, that is Zhongshan Changhong Electrics and RUBA
GENERAL TRADING FZE
Note 2: On 6 January 2015, subsidiary Zhongshan Changhong entered into the ―Mid-long
term loans agree with foreign currency‖ with Zhongshan Branch of Guangdong Development
Bank, and agreed that the Zhongshan Branch of Guangdong Development Bank issued foreign
currency loans USD 4,924,000.00 to Zhongshan Changhong, with loan period of 3 years and
3.2% annual interest rate, the pledge refers to the USD 4.99 million deposit for a long time;
interest of the loans calculated from 6 January 2015, the 20th of end of the quarterly is the
expiry date for interest, 21st is the payment date. The loans are use for the joint-venture project
by Zhongshan Changhong Appliance Co., Ltd and United Arab Emirates RUBA GENERAL
TRADING FZE in Pakistan.
Note 3: on 1 November 2002, the Company entered into the Agreement Relating to
Implementing Construction Projects through Lending Treasury Bond Funds with the finance
office of Hefei, pursuant to which, the finance office of Hefei lent the treasure bonds or
RMB7.16 million related to our ―Technology Reform Project in relation to Nanometer
Materials for Retaining Freshness‖ to our Company, with a terms of 15 years. The lent funds
have begun to carry interest commencing from the date of appropriation of funds by the finance
181
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
office of Hefei (namely 21 November 2002), and the Company shall pay the interests to the
finance office of Hefei annually on an average basis during the lending period. The first four
years of the loan is grace period. The interest rate per annum applicable to the lent funds is
floating interest rate since 1999 (for interest rate per annum in respect of each batch of Treasury
bond lending capital, it is determined by reference to one-year time deposit rate per annum on
value date of the prevailing year as published by the PBOC, plus 0.3 percentage points).
Note 4: It was the special Treasury bond capital appropriated by Ministry of Finance of
Hefei for enterprises’ information reform, received on Dec. 10th, 2004.
Note 5: In August of 2006, the Company signed Asset Mortgage Agreement with Ministry
of Finance of Hefei. It takes five industry crusher chambers which cover an area of 2,322.98
square meters as mortgage for the Company to get the lending of treasury bond fund which has
15-year term and worthy of RMB 7,040,000 from the Ministry of Finance of Hefei. The capital
on-lending began to bear interest from the appropriate date (November 9, 2006), which would
be paid by stages in the loan period to Ministry of Finance of Hefei by the Company. The first
four years were grace period, during which the annual interest rate was subject to floating
interest rate (the annual interest rate was the annual interest rate of one year fixed deposit plus
0.3%). On 1 March 2013, according to the Letter Relating to Ceasing Process of Other
Securities in respect of the Properties in Feidong Longgang Industrial Park of Hefei Meiling
Co., Ltd. (HCJ(2006)No.85) issued by the finance office of Hefei, Meiling commenced the
national purchase of its land parcels in Longgang in compliance with the land planning of Hefei
municipal government, which required its properties in Longgang land parcel to be unrestricted.
Four property ownership certificates (No.: 028277, 028282, 028283, 028284) obtained by
Meiling in 2006 were exchanged for the property with registration No. HGYJCZ No.0121
which was used as the security for treasury bonds lending capital (details were set out in Note
VI.15). The Company repaid principal of RMB640, 000.00 and interest of RMB147, 800.00 in
this year.
(3) Renewal long-term loans at year-end: nil
31. long-tern wage payable
Item Ending balance Opening balance
After-service welfare- net liability of the defined benefit plans - -
Dismissal welfare 40,426,920.51 40,317,465.61
Other long-term welfare - -
Total 40,426,920.51 40,317,465.61
32. Projected liability
Item Ending balance Opening balance Reason
Product quality guarantee 11,030,437.10 11,030,437.10 Guarantee of product
Guarantee fund for quality service 331,603,016.74 336,077,249.05 Guarantee of product
182
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
Item Ending balance Opening balance Reason
Total 342,633,453.84 347,107,686.15
Product quality deposit is the maintenance expense provided by the Company under the national
policy, while quality service special guarantee capital is the warranty costs provided for product quality
in addition to such policy.
33. Deferred income
(1) Classification of deferred income
Item Ending amount Opening amount
Government subsidies---subsidies of development project 46,975,300.50 47,219,392.56
Government subsidies---subsidies of Relocation 82,497,151.49 84,775,835.21
Total 129,472,451.99 131,995,227.77
(2)Government subsidy
Amount
New Assets
Opening reckoned into Other
Item subsidy in Ending amount related/Benefit
amount non-operatin changes
the Year related
g income
Demolition compensation of
49,844,920.65 - - 1,233,725.81 48,611,194.84 Assets related
Hefei Meiling
technical reform for Athena
22,022,812.50 - - 2,143,125.00 19,879,687.50 Assets related
Project
Freezer project of Hefei
3,670,312.46 - - 367,031.26 3,303,281.20 Assets related
Meiling
Relocation of Mianyang Meiling
23,778,399.30 - - 146,017.75 23,632,381.55 Assets related
productionbase
VISA research and application 10,100,000.00 - - - 10,100,000.00 Assets related
Adaptability improvement
R290/D52/13-R290 project for 7,426,267.60 - - 83,935.80 7,342,331.80 Assets related
production of FTXS
Intelligent white-goods software platform
and research and industrialization of typical 4,000,000.00 - - - 4,000,000.00 Assets related
applications
Demolition compensation of
11,152,515.26 - - 898,940.16 10,253,575.10 Assets related
Jiangxi Meiling
Development and productization of the
- 2,350,000.00 - 2,350,000.00 Assets related
CHIQ AC
Total 131,995,227.77 2,350,000.00 - 4,872,775.78 129,472,451.99
34. Share capital
Change during theyear(+,-)
Shares
Item Opening balance New transferred Ending balance
Bonus
shares from Other Subtotal
share
issued capital
reserve
Shares with conditional
10,658,357.00 - - - -1 -1 10,658,356
subscription
183
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
Change during theyear(+,-)
Shares
Item Opening balance New transferred Ending balance
Bonus
shares from Other Subtotal
share
issued capital
reserve
Including: State-owned
540,692.00 - - - 375,295 375,295 915,987
legal person shares
Domestic legal
7,052,279.00 - - - -337,596 -337,596 6,714,683
person shares
Shareswith norestrictedcondition 753,080,848.00 - - - 1 1 753,080,849
Total shares 763,739,205.00 - - - - - 763,739,205.00
35. Capital reserve
Increase during the Decrease during
Item Opening amount Ending amount
year the year
Share premium 1,418,790,515.26 - 7,958,934.41 1,410,831,580.85
Other capital reserve 48,169,423.77 - 48,169,423.77
Total 1,466,959,939.03 - 7,958,934.41 1,459,001,004.62
Share premium refers to the difference by purchasing minority equity from subsidiaries.
36. Other comprehensive income
Account in the period
Less: written in
other
comprehensive
Opening Account income in Belong to Belong to Ending
Item Less :
balance before previous period parent minority balance
income tax
income tax in and carried company shareholders
expense
the year forward to after tax after tax
gains and losses
in current
period
Other comprehensive income re-divided into gains/losses
Including:
conversion
difference arising
-3,262,898.99 -506,008.36 - - -379,924.38 -126,083.98 -3,642,823.37
from foreign
currency financial
statement
37. Surplus reserves
Increase during the Decrease during
Item Opening amount Ending amount
year the year
Statutory surplus reserve 244,249,403.98 - - 244,249,403.98
Discretionary surplus reserve 115,607,702.16 - - 115,607,702.16
Total 359,857,106.14 - - 359,857,106.14
38. Retained profit
Item Current Period Last year
Amount at the end of last year 835,453,313.49 608,723,517.81
184
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
Item Current Period Last year
Add: adjustment from undistributed profit at year-begin - -
Including: retroactive adjustment by Accounting Standards for
Business Enterprise
- -
change of accounting policy - -
Correction of former material error - -
Change of combination scope under common control - -
Other adjustment factors - -
Amount at the beginning of this year 835,453,313.49 608,723,517.81
Add: net profit attributable to shareholders of parent company for this
year 158,369,766.68 294,508,518.37
Less: withdraw of statutory surplus reserve - 21,954,370.39
withdraw of discretional surplus reserve - -
Withdraw of general risk provision - -
Dividend payable for ordinary shares 45,824,352.30 45,824,352.30
Dividend of ordinary shares transferred to share capital - -
Ending balance 947,998,727.87 835,453,313.49
39. Operating income and operating cost
(1)Operating income and operating cost
Item Current Period A year earlier
Main business income 6,160,055,353.93 6,065,191,520.33
Other business income 266,861,935.32 279,197,531.84
Total 6,426,917,289.25 6,344,389,052.17
Main business cost 4,849,322,744.97 4,519,065,778.97
Other business cost 234,922,382.93 261,429,942.59
Total 5,084,245,127.90 4,780,495,721.56
(2)Main business classified according to product
Current Period A year earlier
Product
Operation income Operation cost Operation income Operation cost
Refrigerator,
3,510,601,243.62 2,707,916,216.04 3,549,885,533.16 2,643,939,925.00
freezer
Air-condition 2,441,545,800.41 1,973,497,153.25 2,342,096,863.45 1,740,943,218.35
Washing
117,350,072.10 94,819,325.89 87,465,352.71 69,854,910.33
machine
Other 90,558,237.80 73,090,049.79 85,743,771.01 64,327,725.29
Total 6,160,055,353.93 4,849,322,744.97 6,065,191,520.33 4,519,065,778.97
(3)Main business classified according to sales region
Current Period A year earlier
Region
Operation income Operation cost Operation income Operation cost
Domestic 4,848,200,937.56 3,657,366,355.08 5,079,538,600.53 3,625,288,052.20
185
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
Current Period A year earlier
Region
Operation income Operation cost Operation income Operation cost
Overseas 1,311,854,416.37 1,191,956,389.89 985,652,919.80 893,777,726.77
Total 6,160,055,353.93 4,849,322,744.97 6,065,191,520.33 4,519,065,778.97
Top five clients have income in sales of RMB 2,369,221,163.93 yuan in total, a 36.86% in total
operation income.
40. Business tax and extra charges
Item Current Period A year earlier
Business tax 381,847.10 547,099.61
City construction tax 10,533,067.88 9,944,209.23
Extra charge for education and local education surcharge 7,683,109.90 7,301,221.17
Treatment fund for abandon electrics & electronics 26,557,501.00 27,508,903.96
Other 144,067.74 349,566.30
Total 45,299,593.62 45,651,000.27
41. Sales expense
Item Current Period A year earlier
Transport expenses 223,819,971.74 213,228,988.60
Market support 210,021,178.41 414,879,458.96
Salary , extra charges and social security 172,759,290.28 138,375,811.88
Air conditioner installation fee 108,043,860.00 131,817,263.42
National three guarantees expense 87,206,103.13 89,619,222.69
Storage lease expenses 56,060,213.85 43,239,838.74
Advertisement expenses 22,028,522.55 50,050,073.13
Travelling expenses 14,994,407.32 15,234,243.46
Operation activities expenses 8,302,343.46 8,574,484.29
Meeting organization 4,856,614.75 6,261,675.06
Housing rental 4,164,534.55 4,240,792.59
Vehicle consumption 3,102,783.32 3,429,131.72
Communication expenses 2,595,286.52 2,929,119.71
Depreciation expenses 2,553,186.50 2,543,698.03
Exhibition expenses 1,384,286.00 9,873,469.28
Accrued expenses of the product quality assurance -4,474,232.31 -3,704,194.57
Other expenses 28,027,733.13 25,879,143.53
Total 945,446,083.20 1,156,472,220.52
42. Administration expense
Item Current Period A year earlier
Salary and social insurance etc. 77,059,652.05 73,655,115.83
Amortized intangible assets 16,369,184.00 15,653,734.94
186
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
Item Current Period A year earlier
Tax 17,059,309.54 24,187,321.13
Trial fee of R&D 19,099,473.69 20,673,670.36
Depreciation 8,825,154.54 6,126,568.01
Utilities 5,871,943.87 5,101,095.44
Inspection and authentication fee 4,009,588.95 2,459,079.53
Domestic travelling fee 4,213,270.81 4,523,944.80
Business activities 2,607,185.47 2,719,419.37
Property insurance 1,639,216.72 836,322.18
Office charge 3,025,392.72 2,717,199.48
Other 32,782,871.06 35,893,984.10
Total 192,562,243.42 194,547,455.17
43. Financial expense
Item Current Period A year earlier
Interest expenditure 10,417,535.47 4,772,758.61
Less: Interest income 51,219,711.99 38,510,107.81
Add: exchange loss -5,825,811.85 4,773,881.90
procedure charge expenditure 1,963,953.58 14,605,612.13
discount expenditure -1,149,949.37 -27,034,165.54
other expenditure 11,389.74 -2,448,278.19
Total -45,802,594.42 -43,840,298.90
44. Loss from Assets depreciation
Item Current Period A year earlier
Bad debt losses 34,294,416.03 28,505,564.37
Provision for falling price of inventory 1,026,715.07 1,566,359.61
Total 35,321,131.10 30,071,923.98
45. Changes in fair value gains/losses
Item Current Period A year earlier
Transaction finance asset 3,572,100.00 -
Including :Income of fair value changes from derivative financial
3,572,100.00 -
instruments
Income of fair value changes from stock investment -
Transaction financial liabilities 81,170.00 -
Including :Income of fair value changes from derivative financial
81,170.00 -
instruments
Investment real estate measured by fair value -
Total 3,653,270.00 -
46. Investment income
187
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
(1)Sources of investment income
Item Current Period A year earlier
Long-term equity investment income by equity method -6,482,572.94 -784,297.22
Investment income obtained from held of finance asset available for
-
sales
Investment income obtained from disposal of transaction finance
- -
asset
Investment income obtained from disposal of finance asset available
480,332.00
for sales
Other 517,808.22 -
Total -5,484,432.72 -784,297.22
(2)Long-term equity investment income by equity method
Item Current Period A year earlier Reason of y-o-y change
Changes of net profit of the
Hefei Meiling Solar Energy Technology Co., - -1,084,195.80
invested unit
Changes of net profit of the
Hefei Xingmei Assets Management Co., Ltd. -161,530.37 -95,120.70
invested unit
Changes of net profit of the
ChanghongRuba Electric
486,831.97 395,019.28 invested unit and transactions
Company(Private)Limited
offset
Sichuan Ejar Network Technology Co., Ltd. -6,416,155.32 - New investment
Sichuan Tianyou Guigu Technology Co., Ltd. -391,719.22 - New investment
Total -6,482,572.94 -784,297.22
(3) Investment income obtained from financial assets available for sales: nil
(4)Investment income obtained from disposal of transaction finance asset is the income from NDF
trade: nil
(5) Investment income obtained from disposal of finance asset available for sales:
Item Current Period A year earlier
Fuyang Weiao Meiling Appliance Marketing Co., Ltd. 480,332.00 -
Total 480,332.00 -
(6) Other investment income
Item Current Period A year earlier
Trust management 517,808.22 -
Total 517,808.22 -
47. Non-operation revenue
(1)Non-operation revenue
Amount reckoned
into non-recurring
Item Current Period A year earlier
gains/losses in the
Year
Gains from disposal of non-current 14,776.00 1,469,461.36 14,776.00
188
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
Amount reckoned
into non-recurring
Item Current Period A year earlier
gains/losses in the
Year
assets
Including:Gains from disposal of
fixed assets
14,776.00 1,469,461.36 14,776.00
Government subsidy 12,344,884.49 9,753,687.37 12,344,884.49
Income of penalty 175,210.49 547,560.89 175,210.49
Other 2,270,248.88 8,627,197.54 2,270,248.88
Total 14,805,119.86 20,397,907.16
(2)Government subsidy
Assets/benefit
Item Current Period Ayearearlier Resource and basis
related
Cash the independent innovation
- 759,029.00 He Zheng【2013】No.: 68 Benefitrelated
policy
Special fund for enterprise
- 200,000.00 Cai Qi【2013】No.:1162 Benefitrelated
development
Skillgrantforposition 87,500.00 272,000.00 He Ren She Mi (2013)No.:139 Benefitrelated
Fund for foreign trade policy - 1,720,100.00 He Zheng Mi 【2013】No.:115 Benefitrelated
Patent subsidy policy - 100,000.00 He Zheng (2013)No.:68 Benefitrelated
Implementation and promotion
fund for the parent combination
- 200,000.00 Mian Cai Jian【2014】No.:28 Benefitrelated
of intelligent frequency
conversion AC
Drawback policy of VAT for
VAT refunds 4,028,798.75 196,847.82 Benefitrelated
software product
Subsidy for brand propagate Yue Shangwu Cai Han [2014]
2,000,000.00 - Benefitrelated
extension aboard No.:143
Other government subsidy etc. 1,355,811.00 1,126,525.05 - Benefitrelated
therdeferred income transfer-in 4,872,774.74 5,179,185.50 Deferred income transfer-in Assets related
Total 12,344,884.49 9,753,687.37
48. Non-operating expenditure
Amount reckoned
into non-recurring
Item Current Year A year earlier
gains/losses in the
Year
Loss from disposal of non-current
assets
5,696,803.31 554,394.53 5,696,803.31
Including: loss from disposal of fixed
assets
5,696,803.31 554,394.53 5,696,803.31
External donation - 14,142.00 -
Penalty and overdue fine 2,207,106.34 2,204,391.39 2,207,106.34
Other 1,360,703.50 40,000.00 1,360,703.50
Total 9,264,613.15 2,812,927.92
49. Income tax expenses
Item Current Period A year earlier
189
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
Item Current Period A year earlier
Current income tax 17,784,503.80 42,879,242.22
Deferred Income Tax -3,272,330.20 -6,084,458.91
Total 14,512,173.60 36,794,783.31
50. Other comprehensive income
Found more in ―6- 36. Other comprehensive income‖ in the Note
51. Items to 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
Government subsidy and rewards 3,355,811.00 4,377,654.05
Margin, deposit 2,144,303.05 66,072.00
Rent and trademark income 2,533,392.99 119,835.09
Compensations 633,835.83 -
Other Income 3,523,870.94 4,240,870.44
Total 12,191,213.81 8,804,431.58
2) Cash paid for other activities relating to operation
Item Current Period Last Period
Marketing supporting fee 79,572,503.61 126,708,530.84
AD charge 27,446,706.38 28,142,447.32
Business travel 21,369,206.46 19,422,744.48
Rental expense 11,814,200.36 11,029,584.85
Business activities expenses 11,835,472.37 10,990,433.17
Pretty cash for employees 7,214,366.15 11,990,968.00
Meeting organization charge 5,334,604.14 5,546,412.95
Coach expenses 4,991,269.00 3,974,532.60
Certification and Inspection costs 3,684,382.29 2,503,392.41
vehicle costs 3,012,365.60 2,602,330.12
handling Charges 2,582,838.57 4,746,583.20
Office expenses 2,753,780.41 3,434,384.36
Exhibition expenses 1,497,432.71 3,320,732.91
Penalty and overdue fine 2,207,106.34 2,204,391.39
Utilities 1,916,567.81 1,147,989.00
Changes of the limited monetary fund 50,768,920.59 769,544.05
Others 97,195,223.11 94,895,907.89
Total 335,196,945.90 333,430,909.54
190
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
3) Cash received from other activities relating to investment
Item Current Period Last Period
Interest income arising from bank savings 50,612,750.61 38,510,107.81
Government investment granted 2,350,000.00 -
Margin 287,936.00 2,464,965.18
Total 53,250,686.61 40,975,072.99
4) Cash paid for other activities relating to investment
Item Current Period Last Period
Tender bond of projects returned 427,715.77 1,854,670.00
5) Cash received from other activities relating to financing: Nil
6) Cash paid for other activities relating to financing
Item Current Period Last Period
Amount refund to minority shareholders due to the
130,164.45 2,973,468.35
cancellation of subsidiary
Handling charge of dividend 93,855.90 -
Total 224,020.35 2,973,468.35
(2)Supplementary information about consolidated cash flow statement
1 . Net profit is adjusted to cash flow of operation activities: Current Period A year earlier
Net profit 159,042,874.82 160,996,928.28
Add: provision for depreciation of assets 35,321,131.10 30,071,923.98
Depreciation of fixed assets, consumption of oil gas assets and
69,652,307.20 63,028,130.09
depreciation of productive biological assets
Amortization of intangible assets 16,314,973.01 15,594,981.89
Amortization of long-term retained expense -
Loss from disposal of fixed assets, intangible assets and other long
5,682,027.31 -915,066.83
term assets(gain is listed with ―-‖)
Loss from discarding fixed assets as useless (gain is listed with ―-‖) -
Loss from change of fair value(gain is listed with ―-‖) -3,653,270.00
Financial expense (gain is listed with ―-‖) -40,802,176.52 -33,737,349.20
Investment loss (gain is listed with ―-‖) 5,484,432.72 784,297.22
Decrease of deferred income tax assets (increase is listed with ―-‖) -3,272,330.20 -6,084,458.91
Increase of deferred income tax liabilities (decrease is listed with ―-‖) -
Decrease of inventories (increase is listed with ―-‖) 221,925,300.91 -31,517,872.67
Decrease of operational accounts receivable (increase is listed with
-1,496,498,636.71 -1,127,376,537.67
―-‖)
Increase of operational accounts payable (decrease is listed with ―-‖) 1,374,214,353.39 656,746,298.06
Other - -
Net cash flow arising from operation activities 343,410,987.03 -272,408,725.76
(3) Net cash paid for subsidiary obtained in the Year: Nil
191
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
(4) Cash received by disposal of subsidiary in the Year: Nil
(5)Cash and cash equivalent
Item Current Period Opening amount
Monetary fund in balance sheet 2,797,826,595.72 2,665,219,013.80
Including: stock cash 12,917.09 34,327.48
Bank deposit 2,729,498,557.95 2,602,664,703.52
Other monetary fund 68,315,120.68 62,519,982.80
Less: margin for over 3 months (amount not consider as cash) 28,475,300.51 19,339,995.92
Including: margin of the bank acceptance over 3 months 28,475,300.51 19,339,995.92
Cash in cash flow statement 2,769,351,295.21 2,645,879,017.88
52. Assets with ownership or the right to use restricted
Item Ending Book value Reasons
Monetary fund 28,475,300.51 Margin for over 3 months
Notes receivable 234,375,733.20 Issued bank acceptance
Account receivable 41,383,334.99 Secured borrowings
Intangible assets 21,052,438.69 Mortgage loan
Other non-current assets 41,633,616.00 Time deposit for a long-time
Total 366,920,423.39
53. Foreign currency
Foreign currency
Ending foreign currency Ending RMB converted
Item Exchange rate
balance balance
Monetary fund 178,110,121.60
Including:USD 26,683,375.66 6.1136 163,131,485.42
Euro 1,078,046.58 6.8699 7,406,072.22
Rupi 126,149,478.28 0.0600 7,572,563.96
Account receivable 546,764,597.20
Including:USD 72,266,455.86 6.1136 441,808,204.52
Euro 2,562,716.93 6.8699 17,605,609.02
AUD 2,363,405.02 4.6993 11,106,349.21
Rupi 1,270,137,259.04 0.0600 76,244,434.45
Other account receivable 2,036,514.33
Including:USD 41,234.41 6.1136 252,090.67
Rupi 29,726,274.35 0.0600 1,784,423.66
Account payable 59,106,551.28
Including:USD 571,111.03 6.1136 3,491,544.42
Rupi 926,476,704.51 0.0600 55,615,006.86
Other account payable 12,226,831.52
192
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
Ending foreign currency Ending RMB converted
Item Exchange rate
balance balance
Including:USD 480,443.27 6.1136 2,937,237.98
Rupi 154,753,051.22 0.0600 9,289,593.54
Short-term loans 295,634,892.65
Including:USD 48,356,924.34 6.1136 295,634,892.65
Long-term loans 41,107,846.40
Including:USD 6,724,000.00 6.1136 41,107,846.40
(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 Rupi.
54. Hedging: Nil
55. Other: Nil
7. 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
193
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
5. Subsidiary liquidated
Difference
betweenthe Other
disposalpriceand comprehensiv
proportion ofthe Book Fair value Determination e income
subsidiary’snet Proportionof valueofthe ofthe Gainsorlossesof method and main transferred into
Determination
Priceofthe Ratioofthe Wayofthe Time pointof assetsenjoyin theresidual residual residual theresidual hypothesisforthe investment
basis forthetime
Subsidiary equity equity equity controlright aspectofthe equityon date equityon equityon equity residualequity’s fair income ,
pointofcontrol
disposed disposed disposed lose consolidated when control datewhen datewhen re-measured by valueonthedate which related
rightlose
financial rightslose control control fair value when controlright with theequity
statement,which rightslose rightslose lose investmentof
isrespond to the original
disposal subsidiary
investment
Neijiang Meiling
Appliance Liquidatio Liquidation
- 95% 2015-5 - - - - - Notapplicable -
Marketing Co., n cancelled completed
Ltd.
6. Subsidiary established: Nil
8. Equity in other entity
1. Equity in subsidiary
(1) Composition of the enterprise group
Registration Business Share-holding ratio (%)
Subsidiary Business area Acquire way
place nature Directly Indirectly
Manufactures,
ZhongkeMeilingCryogenicTechnologyCo., Ltd.1) Hefei Hefei 70.00 - Investment
sales
Software
MianyangMeilingSoftwareTechnologyCo., Ltd. 2) Mianyang Mianyang 99.00 1.00 Investment
development
Manufactures,
MianyangMeilingRefrigeration Co., Ltd.3) Mianyang Mianyang 95.00 5.00 Investment
sales
Manufactures,
JiangxiMeilingAppliance Co., Ld.4) JDZ JDZ 98.75 1.25 Investment
sales
Hefei MeilingApplianceMarketingCo., Ltd.5) Hefei Hefei Sales 99.82 0.18 Investment
Enterprise combined under the
GuangxiHuidian HomeApplianceCo., Ltd.6) Nanning Nanning Sales - 100.00
differentcontrol
LuoheMeilingApplianceMarketingCo., Ltd.7) Luohe Luohe Sales - 100.00 Investment
Wuhu MeilingApplianceMarketingCo., Ltd.8) Wuhu Wuhu Sales - 98.00 Investment
Changchu Changchu
ChangchunMeilingApplianceMarketing Co., Ltd.9) Sales - 97.00 Investment
n n
Bengbu MeilingApplianceMarketingCo., Ltd.10) Bengbu Bengbu Sales - 93.50 Investment
HengyangMeilingApplianceMarketing Co., Ltd.11) Hengyang Hengyang Sales - 85.00 Investment
NanchangMeilingApplianceMarketingCo., Ltd.12) Nanchang Nanchang Sales - 85.00 Investment
Jingzhou MeilingApplianceMarketingCo., Ltd.13) Jingzhou Jingzhou Sales - 81.00 Investment
ShenyangMeilingApplianceMarketingCo., Ltd.14) Shenyang Shenyang Sales - 94.80 Investment
Wuhan MeilingApplianceMarketingCo., Ltd.15) Wuhan Wuhan Sales - 91.00 Investment
Zhengzhou MeilingApplianceMarketingCo., Ltd.16) Zhengzhou Zhengzhou Sales - 85.00 Investment
Shijiazhuan Shijiazhuan
ShijiazhuangMeilingApplianceMarketing Co., Ltd.17) Sales - 63.33 Investment
g g
194
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
Registration Business Share-holding ratio (%)
Subsidiary Business area Acquire way
place nature Directly Indirectly
MianyangMeilingApplianceMarketing Co., Ltd.18) Mianyang Mianyang Sales - 85.00 Investment
Chengdu MeilingApplianceMarketing Co.,Ltd.19) Chengdu Chengdu Sales - 85.00 Investment
Guiyang MeilingApplianceMarketingCo.,Ltd.20) Guiyang Guiyang Sales - 86.00 Investment
Fuzhou MeilingApplianceMarketingCo., Ltd.21) Fuzhou Fuzhou Sales - 99.00 Investment
NanjingMeilingApplianceMarketingCo., Ltd.22) Nanjing Nanjing Sales - 99.00 Investment
Hefei MeilingWhiteApplianceMarketing Co., Ltd.23) Hefei Hefei Sales - 95.00 Investment
Taiyuan MeilingApplianceMarketingCo., Ltd.24) Taiyuan Taiyuan Sales - 85.25 Investment
ChangshaMeilingApplianceMarketingCo., Ltd.25) Changsha Changsha Sales - 86.00 Investment
HohhotMeilingApplianceMarketingCo., Ltd.26) Hohhot Hohhot Sales - 83.00 Investment
HohhotMeilingApplianceMarketingCo., Ltd.27) Hohhot Hohhot Sales - 95.00 Investment
ChongqingMeilingApplianceMarketingCo., Ltd.28) Chongqing Chongqing Sales - 85.00 Investment
KunmingMeilingApplianceMarketingCo.,Ltd.29) Kunming Kunming Sales - 86.50 Investment
ShanghaiMeilingApplianceMarketing Co.,Ltd.30) Shanghai Shanghai Sales - 99.00 Investment
NantongMeilingApplianceMarketingCo.,Ltd.31) Nantong Nantong Sales - 92.00 Investment
TianjinMeilingApplianceMarketing Co., Ltd.32) Tianjin Tianjin Sales - 85.50 Investment
UrumchiMeilingApplianceMarketingCo., Ltd.33) Urumchi Urumchi Sales - 90.00 Investment
Harbin MeilingApplianceMarketingCo., Ltd.34) Harbin Harbin Sales - 77.50 Investment
BeijingMeilingApplianceMarketing Co., Ltd.35) Beijing Beijing Sales - 99.00 Investment
Lanzhou MeilingApplianceMarketingCo., Ltd.36) Lanzhou Lanzhou Sales - 51.50 Investment
Xi’an MeilingApplianceMarketingCo., Ltd.37) Xi’an Xi’an Sales - 85.00 Investment
Guangzhou MeilingApplianceMarketingCo., Ltd.38) Guangzhou Guangzhou Sales - 98.00 Investment
JinanMeilingApplianceMarketing Co., Ltd.39) Jinan Jinan Sales - 36.00 Investment
ChanghongRubaTradingCompany40) Pakistan Pakistan Sales - 60.00 Investment
Manufactures, Enterprise combined under the
Sichuan ChanghongAirConditionerCo., Ltd.41) Mianyang Mianyang 100.00 -
sales same control
Manufactures, Enterprise combined under the
Zhongshan ChanghongApplianceCo., Ltd42) Zhongshan Zhongshan 90.00 10.00
sales same control
Manufactures, Enterprise combined under the
Hefei Meiling Group HoldingCo., Ltd.43) Hefei Hefei 100.00 -
sales differentcontrol
Manufactures, Enterprise combined under the
MeilingEquatorAppliance (Hefei)Co., Ltd44) Hefei Hefei - 100.00
sales differentcontrol
Manufactures, Enterprise combined under the
Hefei EquatorApplianceCo., Ltd.45) Hefei Hefei - 100.00
sales differentcontrol
Hefei Meiling Nonferrous Metal Products Manufactures, Enterprise combined under the
Hefei Hefei - 100.00
Co., Ltd.46) sales differentcontrol
Hefei Meiling Packing Products Co., Ltd. Manufactures, Enterprise combined under the
Hefei Hefei 48.28 51.72
47) sales differentcontrol
1) Zhongke Meiling Cryogenics Technology Limited Company (hereinafter referred to as
Zhongke Meiling Company) was established on Oct. 29, 2002 by Hefei Meiling Co., Ltd. and
CAS’s Technical Institute of Physical & Chemistry, whose registered capital including RMB 60
million material contribution of RMB 35,573,719.70 which accounted for 70% of registered
195
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
capital and cash contribution of RMB 6,426,280.30. CAS’s Physical & Chemical technology
Research made contributions by New mixed throttle refrigeration technology and technical
License of Application research in super low temperature storage box that was appraised RMB
18,000,000 accounting for 30% of registered capital. The actual received of the register capital
have been verified by verification report of [Huazheng Yanzi No.(2002) B157] issued by
Huazheng CPAs Co., Ltd. In 2014, the 30% equity held by the CAS’s Technical Institute of
Physical & Chemistry were transferred to its wholly-owned subsidiary Zhongke Xianxing
(Beijing) Assets Management Co., Ltd., and completed the registration change of Industry &
Commerce in December 2014.
Registration No. of the Business License of Corporation Legal Person: 3401001006416;
organization code: 74309835-2; Legal Representative: Li Wei; Address: No. 2163, Lianhua
Road, Economy and Technology Development Zone, Hefei City. Business Scope: R & D,
exploitation, manufacture, sales and service of cryogenic cooling equipment and products;
self-operating and agency for the import&export business of various commerce and technology.
(Excluding the commodity and technology that restricted for operation or import and export
prohibit by the State)
2) Mianyang Meiling Software Technology Co., Ltd. (hereinafter referred to as Meiling
Software Company) was established on Jan. 24, 2014. It is a limited company jointly invested
by Hefei Meiling Co., Ltd. (Meingling 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 RMB 5 million, including RMB 4.95 million
contributed by Meiling Company in cash, accounted for 99% of the registered capital;
Mianyang Meiling Refrigeration Co., Ltd. contributed RMB 50000 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..
Registration No. of the Business License of Corporation Legal Person: 510703000059200;
Registered capital: RMB 5 million; Address: No. 303, Jiuzhou Revenue, Peicheng District,
Mianyang City. Legal Representative: Zhang Xiaolong; Business Scope: Research and sales of
the controlling and intelligent software for AC, Washing machine, Refrigerator and freeze and
appliance etc.
3) Mianyang Meiling Refrigeration Co., Ltd. (hereinafter referred to as Mianyang Meiling
Company), a limited liability company jointly set up by Hefei Meiling Co., Ltd. and Zhongke
Meiling Company, was founded on Mar. 6, 2009. Its registered capital and paid-in capital was
RMB 50 million upon establishment, of which, Hefei Meiling invested RMB 45 million,
accounting for 90% of the registered capital; Zhongke Meiling Company invested RMB 5
million, 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.
196
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
On 19 January 2011, Hefei Meiling increase RMB 50 million in capital of Mianyang Meiling,
of which RMB 95 million invested by the Company, a 95% of total register capital while RMB
5 million 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 Appliance Co., Ld, than 5 percent
equity was transfer to Jiangxi Meiling Appliance.
Registration No. of the Business License of Corporation Legal Person: 510706000014939;
organization code: 68610561-5; Address: No.35 Mianxing East Road, Gaoxin District,
Mianyang City, Sichuan Province; Legal Representative: Liao Tao; Business Scope: R & D,
manufacture and sales of cooling apparatus, electronic products and other fittings; import and
export of the goods and technology (excluding the items prohibit by the laws and regulations,
license required for restriction items)
4) Jiangxi Meiling Appliance Co., Ld.(Jiangxi Meiling Appliance Co.,) was a limited
liability company jointly established by the Hefei Meiling Co., Ltd. and Mianyang Meiling on
23 May 2011. Register capital of the company totally as RMB 50 million, RMB 49.375 million
invested by Hefei Meiling Co., Ltd, 98.75% in total register capital while RMB 0.625 million
invested by Mianyang Meiling , a 1.25% in total register capital occupied. The initial
investment RMB 10.50 million was received dated 13 May 2011 with RMB 10 million from
the Company and RMB 0.5 million 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 RMB
39.5 million was fully funded on 28 July 2011, Hefei Meiling Co., Ltd contributed RMB
39.375 million while Mianyang Meiling Company invested RMB 125,000, 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.
Registration No. of the Business License of Corporation Legal Person: 360200110004455;
organization code: 57364516-4; Address: South part of Wutong Revenue, High-Tech Industrial
Development District, Jingdezhen; Legal Representative: Liao Tao; Business Scope: R&D,
manufacturing and sales of refrigerator and its accessories.
5) Hefei Meiling Appliance Marketing Co., Ltd. (Meiling Marketing Company for short)
is the limited company jointly invested by the Meiling Co., Ltd. and Mianyang Meiling
Company on 21 Oct. 2009. Registered capital and paid-up capital was RMB 10 million,
including RMB 9.9 million invested by Meiling Co., Ltd., a 99% of the registered capital;
Mianyang Meiling Company contributed RMB 0.1 million, a 1% of the registered capital. The
197
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
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 RMB 45 million, registered capital
amounting to RMB 55 million, including RMB 54.9 million contributed by the Company, a
99.82% of the registered capital, while Mianyang Meiling invested RMB 0.1 million, a 0.18%
of the registered capital. The increased capital have been verified by verification report of [Wan
Hua Shen Zheng Da Kuai Yan Zi (2010) No. 1514] issued by Anhui Hua Shen Zhengda CPA
Co., Ltd.
Registration No. of the Business License of Corporation Legal Person: 340107000030092;
Address: Woyun Road North, Lianhua Road East, Economy and Technology Development
Zone, Hefei City; Legal Representative: Deng Xiaohui; Business Scope: refrigeration appliance,
air-conditioner, washing machine, computer numerical control injection molding machine,
computer water heater, plastic products, packaging and decorations, electronic products and
accessories, department store sales.
6) Guangxi Huidian Home Appliance Co., Ltd. (Guangxi Huidian for short) established in
March 2010 with registered capital of RMB 5 million. the Company invested RMB 1 million,
accounted for 20% of the registered capital; In 2014, the Company purchased minority equity
of 44%; and subsidiary of the Company Hefei Meiling Appliance Marketing Co., Ltd. and
Jiangxi Meiling Appliance Co., Ld. entered into equity transferred agreement with minority
shareholders respectively in 2015, transferred 35.6% and 0.4% equity of Guangxi Huidian
held by the minority, after equity transferred completed in April 2015, the Company totally
holds 100% equity of Guangxi Huidian; enterprise type: limited company; address: Room 402,
403, 404 and 407, 4/F, Plant, Central District, No. 9 Huoju Road, Nanning City. Legal
Representative: Zhou Wenhui; Business Scope: sales, installment and maintenance of
Refrigerator and freezer, Washing machine and AC.
7) Luohe Meiling Appliance Marketing Co., Ltd. (Luohe Meiling for short) was
established dated 10 December 2010 with registered capital of RMB 5 million. The Company
invested RMB 1.85 million, accounted for 37% of the registered capital. In 2013, the Company
purchased minority equity of 27%; acquired 35.6% equity from minorities in 2014; and
subsidiary of the Company Jiangxi Meiling Appliance Co., Ld. entered into equity transferred
agreement with minority shareholders in 2015, transferred 0.4% equity of Luohe Meiling held
by the minority, after equity transferred completed in January 2015, the Company totally holds
100% equity of the Luohe Meiling; enterprise type: limited company; address and business
place: Middle section of the Huanghe Road, Yancheng District, Luohe City. Legal
Representative: Liu Xiangyang Business Scope: sales and maintenance of home appliance.
8) Wuhu Meiling Appliance Marketing Co., Ltd. (Wuhu Meiling for short) was established
dated 24 December 2010 with registered capital of RMB 6 million; the Company invested
198
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
RMB 2.16 million, accounted for 36% of the registered capital; after the Company acquired
62% equity from the minorities in 2014; the Company totally holds 98% equity of the Wuhu
Meiling; enterprise type: limited company; address and business place: No.1002, Qiaohong
International Mall, Jinghu District, Wuhu City. Legal Representative: Hu Zhaogui; Business
Scope: sales and maintenance of home appliance.
9) Changchun Meiling Appliance Marketing Co., Ltd. (Changchun Meiling for short) was
established dated 22 December 2010 with registered capital of RMB 3million; the Company
invested RMB 2.91 million, accounted for 97% of the registered capital; enterprise type:
limited company; address and business place: South Section 301, No. 21, Xi Minzhu Revenue,
Chaoyang District, Changchun City; Legal Representative: Tang Yiliang; Business Scope: sales
and maintenance of home appliance.
10) Bengbu Meiling Appliance Marketing Co., Ltd. (Bengbu Meiling for short) was
established dated 27 December 2010 with registered capital of RMB 3 million; the Company
invested RMB 2.55 million, accounted for 85% of the registered capital. In 2013, the Company
purchased 2.4% equity from the minority; and after the Company acquired 6.1% equity from
the minorities in 2014; the Company totally holds 93.5% equity of the Bengbu Meiling;
enterprise type: other limited company; address and business place: East house, 6/F, Office
Building, East 9-18 Floor, New Shiji Sqaure, No. 1028, Huaihe Road, Bengbu City. Legal
Representative: Cui Lianbin; Business Scope: sales and maintenance of home appliance.
11) Hengyang Meiling Appliance Marketing Co., Ltd. (Hengyang Meiling for short) was
established dated 24 December 2010 with registered capital of RMB 3 million; the Company
invested RMB 1.23 million, accounted for 41% of the registered capital; after the Company
acquired 44% equity from the minorities in 2014; the Company totally holds 85% equity of the
Hengyang Meiling; enterprise type: limited company; address and business place: No.302,
Yujia Community,Yujia Team, Jiangdong Village, Zhuhuai District, Hengyang City. Legal
Representative: Liu Xiangyang; Business Scope: sales and maintenance of home appliance.
12) Nanchang Meiling Appliance Marketing Co., Ltd. (Nanchang Meiling for short) was
established dated 5 January 2011 with registered capital of RMB 3 million; Meiling Marketing
invested RMB 1.08 million, accounted for 36% of the registered capital; after the Company
acquired 49% equity from the minorities in 2014; the Company totally holds 85% equity of the
Nanchang Meiling; enterprise type: limited company; address and business place: No. 192,
Gaoxin 7# Rd., Gaoxin District, Nanchang City; Legal representative: Liu Xiangyang; Business
Scope: wholesales, sales and maintenance of home appliance.
13) Jingzhou Meiling Appliance Marketing Co., Ltd. (Jingzhou Meiling for short) was
established dated 10 January 2011 with registered capital of RMB 4 million; Meiling Marketing
invested RMB 2.4 million, accounted for 60% of the registered capital. In 2013, acquired 20%
equity from the minorities; after the Company acquired 1% equity from the minorities in 2014;
199
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
the Company totally holds 81% equity of the Jingzhou Meiling; enterprise type: limited
company; address and business place: Room 1104, B Tower, (Jun Lin Tian Xia) Yuanlin Road,
Shashi District, Jingzhou City; Legal representative: Liu Xiangyang; Business Scope: sales and
maintenance of home appliance.
14) Shengyang Meiling Appliance Marketing Co., Ltd. (Shengyang Meiling for short) was
established dated 26 January 2011 with registered capital of RMB 3 million; Meiling Marketing
invested RMB 2.844 million, accounted for 94.8% of the registered capital. Enterprise type:
limited company; address and business place: No.30, Renao Rd., Shenhe District, Shenyang
City; Legal representative: Tang Yiliang; Business Scope: sales and maintenance of home
appliance.
15) Wuhan Meiling Appliance Marketing Co., Ltd. (Wuhan Meiling for short) was
established dated 10 January 2011 with registered capital of RMB 5 million; Meiling Marketing
invested RMB 4.55 million, accounted for 91% of the registered capital. Enterprise type:
limited company; Room 4, Room 5, 4/F, Building C, No.50 Jiefang Gongyuan Rd., Jiang’an
District, Wuhan City; Legal representative: Liu Xiangyang; Business Scope: refrigerator
machine, air-conditioner, washing machine, electronic products and accessories and sales of
general merchandise.
16) Zhengzhou Meiling Appliance Marketing Co., Ltd. (Zhengzhou Meiling for short) was
established dated 17 January 2011 with registered capital of RMB 3 million; Meiling Marketing
invested RMB 1.08 million, accounted for 36% of the registered capital. In 2013, acquired 10%
equity from the minorities; and entered into equity transferred agreement with minority
shareholders in 2015, transferred 39% equity of Zhengzhou Meiling held by the minority, after
equity transferred completed in April 2015, the Company totally holds 85% equity of the
Zhengzhou Meiling; enterprise type: limited company; address and business place: No.11, 4/F,
No.18 Chengdong Rd. East, Guancheng District, Zhengzhou City; Legal representative: Liu
Xiangyang; Business Scope: sales and maintenance of home appliance.
17) Shijiazhuang Meiling Appliance Marketing Co., Ltd. (Shijiazhuang Meiling for short)
was established dated 14 January 2011 with registered capital of RMB 3 million; Meiling
Marketing invested RMB 1.08 million, accounted for 36% of the registered capital; after the
Company acquired 27.33% equity from the minorities in 2014; the Company totally holds
63.33% equity of the Shijiazhuang Meiling; enterprise type: limited company; address and
business place: No.669, Chengjiao Street South, Qiaoxi District, Shijiazhuang City; Legal
representative: Tang Yiliang; Business Scope: sales and maintenance of home appliance.
18) Mianyang Meiling Appliance Marketing Co., Ltd. (Mianyang Meiling for short) was
established dated 27 January 2011 with registered capital of RMB 5 million; Meiling Marketing
invested RMB 2.6 million, accounted for 52% of the registered capital. In 2013, after the
Company purchased 33% equity from minority, the Company totally holds 85% equity of the
200
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
Mianyang Meiling; enterprise type: limited company; address and business place: Commercial
& Trade Plaza, Gaoxin District, Mianyang; Legal representative: Hu Zhaogui; Business Scope:
sales and maintenance of home appliance.
19) Chengdu Meiling Appliance Marketing Co., Ltd. (Chengdu Meiling for short) was
established dated 26 January 2011 with registered capital of RMB 5 million; Meiling Marketing
invested RMB 4.17 million, accounted for 83.4% of the registered capital; after the Company
acquired 1.6% equity from the minorities in 2014; the Company totally holds 85% equity of the
Chengdu Meiling; enterprise type: limited company; address and business place: No.22,
Shuangfeng West Rd., Wuhou District, Chengdu City; Legal representative: Hu Zhaogui;
Business Scope: sales and maintenance of home appliance.
20) Guiyang Meiling Appliance Marketing Co., Ltd. (Guiyang Meiling for short) was
established dated 24 January 2011 with registered capital of RMB 3 million; Meiling Marketing
invested RMB 0.78 million, accounted for 26% of the registered capital; in 2013 the Company
acquired 18% equity from the minorities; and entered into equity transferred agreement with
minority shareholders in 2015, transferred 42% equity of Guiyang Meiling held by the minority,
after equity transferred completed in June 2015, the Company totally holds 86% equity of the
Guiyang Meiling; enterprise type: limited company; address and business place: No.16-3, Pubu
Business Building, No. 19 Yan’an West Rd., Yunyan District, Guiyang City; Legal
representative: Hu Zhaogui; Business Scope: sales and maintenance of home appliance.
21) Fuzhou Meiling Appliance Marketing Co., Ltd. (Fuzhou Meiling for short) was
established dated 25 January 2011 with registered capital of RMB 3 million; Meiling Marketing
invested RMB 2.97 million, accounted for 99% of the registered capital; enterprise type:
limited company; address and business place: 05, 22/F, Jin’an Building, Jinyuan Garden, No.
328 Liuyi North Rd., Ji’an District, Fuzhou City; Legal representative: Zhou Wenhui; Business
Scope: sales and maintenance of home appliance.
22) Nanjing Meiling Appliance Marketing Co., Ltd. (Nanjing Meiling for short) was
established dated 14 Feb. 2011 with registered capital of RMB 3 million; Meiling Marketing
invested RMB 2.97 million, accounted for 99% of the registered capital; enterprise type:
limited company; address and business place: 14/F, Dongheng International Business Building,
No. 288 Zhongshan South Rd., Baixia District, Nanjing City y; Legal representative: Hu
Zhaogui; Business Scope: sales and maintenance of home appliance.
23) Hefei Meiling White Appliance Marketing Co., Ltd. (White Appliance for short) was
established dated 21 January 2011 with registered capital of RMB 6 million; Meiling Marketing
invested RMB 5.1 million, accounted for 85% of the registered capital; the Company entered
into equity transferred agreement with minority shareholders in 2015, transferred 10% equity of
White Appliance held by the minority, after equity transferred completed in February 2015, the
Company totally holds 95% equity of the White Appliance; enterprise type: limited company;
201
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
address and business place: A-201, Huayi Science & Technology Park, Gaoxin District, Hefei
City; Legal representative: Zhou Wenhui; Business Scope: sales and maintenance of home
appliance.
24) Taiyuan Meiling Appliance Marketing Co., Ltd. (Taiyuan Meiling for short) was
established dated 18 January 2011 with registered capital of RMB 4 million; Meiling Marketing
invested RMB 1.59 million, accounted for 39.75% of the registered capital; In 2013, after the
Company purchased 45.5% equity from minority, the Company totally holds 85.25% equity of
the TaiyuanMeiling; enterprise type: limited company; address and business place: 6/F,
Hanyuan Building, Qinxian North Street, Xiaodian District, Taiyuan City; Legal representative:
Tang Yiliang; Business Scope: sales and maintenance of home appliance.
25) Changsha Meiling Appliance Marketing Co., Ltd. (Changsha Meiling for short) was
established dated 26 January 2011 with registered capital of RMB 5 million; Meiling Marketing
invested RMB 1.8 million, accounted for 36% of the registered capital; after acquired 50%
equity from the minority in 2014, the Company totally holds 86% equity of the Changsha
Meiling; enterprise type: limited company; address and business place: Room 301, Oriental
Ginza, No. 348 Yuanda No.1 Rd., Furong District, Changsha City; Legal representative: Liu
Xiangyang; Business Scope: sales and maintenance of home appliance.
26) Hohhot Meiling Appliance Marketing Co., Ltd. (Hohhot Meiling for short) was
established dated 21 Feb. 2011 with registered capital of RMB 3 million; Meiling Marketing
invested RMB 1.65 million, accounted for 55% of the registered capital; In 2013, after the
Company purchased 28% equity from minority, the Company totally holds 83% equity of the
Hohhot Meiling; enterprise type: limited company; address and business place: No. 516, 4/F,
Comprehensive Building, Jiangjun Garden, No. 139 Dongku Street, Xincheng District, Hohhot
City; Legal representative: Tang Yiliang; Business Scope: sales and maintenance of home
appliance.
27) Hangzhou Meiling Appliance Marketing Co., Ltd. was established dated 17 Feb. 2011
with registered capital of RMB 3 million; Meiling Marketing invested RMB 2.655 million,
accounted for 88.5% of the registered capital; entered into the equity transfer agreement with
minority shareholders in 2015, transferred 6.5% equity of the Hangzhou Meiling Appliance
Marketing Co., Ltd. held by minorities, after equity transfer complete in February 2015, the
company holds 95% equity of Hangzhou Meiling; enterprise type: limited company; address
and business place: Room 609, 1# building, Nanbei Shangwugang, Gongshu District,
Hangzhou City; Legal representative: Zhou Wenhui; Business Scope: sales and maintenance of
home appliance.
28) Chongqing Meiling Appliance Marketing Co., Ltd. (Chongqing Meiling for short) was
established dated 1 March 2011 with registered capital of RMB 3 million; Meiling Marketing
invested RMB 2.55 million, accounted for 85% of the registered capital; enterprise type:
202
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
limited company; address and business place: No. 105, No. 106 and No.111, Dayang Gongqiao,
Shapingba District, Chongqing City; Legal representative:Hu Zhaogui; Business Scope: sales
and maintenance of home appliance.
29) Kunming Meiling Appliance Marketing Co., Ltd. (Kunming Meiling for short) was
established dated 28 Feb. 2011 with registered capital of RMB 3 million; Meiling Marketing
invested RMB 1.395 million, accounted for 46.5% of the registered capital; In 2013, after the
Company purchased 40% equity from minority, the Company totally holds 86.5% equity of the
Kunming Meiling; enterprise type: limited company; address and business place: 6/F, No. 13
Longquan Rd., Kunming City; Legal representative: Hu Zhaogui; Business Scope: sales of
home appliance and general merchandise.
30) Shanghai Meiling Appliance Marketing Co., Ltd. (Shanghai Meiling for short) was
established dated 9 March 2011 with registered capital of RMB 3 million; Meiling Marketing
invested RMB 2.97 million, accounted for 99% of the registered capital; enterprise type:
limited company; address and business place: Room 201-9, No. 15, 152 Lane, Yanchang Rd.,
Shanghai City; Legal representative: Zhou Wenhui; Business Scope: sales and maintenance of
home appliance.
31) Nantong Meiling Appliance Marketing Co., Ltd. (Nantong Meiling for short) was
established dated 8 March 2011 with registered capital of RMB 3 million; Meiling Marketing
invested RMB 1.74 million, accounted for 58% of the registered capital; In 2013, after the
Company purchased 34% equity from minority, the Company totally holds 92% equity of the
Nantong Meiling; enterprise type: limited company; address and business place: Room 201,
Funan Building, zhongbei Mansion, No. 351, Gongnong Road, Nantong City; Legal
representative: Zhou Wenhui; Business Scope: sales and maintenance of home appliance.
32) Tianjin Meiling Appliance Marketing Co., Ltd. (Tianjin Meiling for short) was
established dated 2 March 2011 with registered capital of RMB 3 million; Meiling Marketing
invested RMB 2.565 million, accounted for 85.5% of the registered capital; enterprise type:
limited company; address and business place: middle layer, No. 3001-96, economy and
development centre, No. 9 Junling Rd., Electronic Industrial Park, North Gate, Jinnan District;
Legal representative: Tang Yiliang; Business Scope: sales and maintenance of home appliance.
33) Urumchi Meiling Appliance Marketing Co., Ltd. (Urumchi Meiling for short) was
established dated 4 March 2011 with registered capital of RMB 3 million; Meiling Marketing
invested RMB 2.7 million, accounted for 90% of the registered capital; enterprise type: limited
company; address and business place: Room 505, Yinzuo Centre, No. 196 Tianjin South Rd.,
Urumchi City; Legal representative: Hu Zhaogui; Business Scope: sales and maintenance of
home appliance.
34) Harbin Meiling Appliance Marketing Co., Ltd. (Harbin Meiling for short) was
203
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
established dated 6 April 2011 with registered capital of RMB 3 million; Meiling Marketing
invested RMB 1.08 million, accounted for 36% of the registered capital; the Company entered
into equity transferred agreement with minority shareholders in September 2014, after acquired
41.5% equity of the minority, the Company totally holds 77.5% equity of the Harbin Meiling;
enterprise type: limited company; address and business place: No.4, Hengshan Rd., Nangang
Centre District, Jinkai Zone, Harbin City; Legal representative: Tang Yiliang; Business Scope:
sales and maintenance of home appliance.
35) Beijing Meiling Appliance Marketing Co., Ltd. (Beijing Meiling for short) was
established dated 28 March 2011 with registered capital of RMB 3 million; Meiling Marketing
invested RMB 2.97 million, accounted for 99% of the registered capital; enterprise type:
limited company; address and business place: No.23, Xinhua West Street, Majuqiao Town,
Tongzhou District, Beijing; Legal representative: Hu Zhaogui; Business Scope: sales and
maintenance of home appliance.
36) Lanzhou Meiling Appliance Marketing Co., Ltd. (Lanzhou Meiling for short) was
established dated 25 March 2011 with registered capital of RMB 3 million; Meiling Marketing
invested RMB 1.215 million, accounted for 40.50% of the registered capital; In 2013, after the
Company purchased 11% equity from minority, the Company totally holds 51.5% equity of the
Lanzhou Meiling; enterprise type: limited company; address and business place: No. 134,
Jiayuguan West Rd., Chengguan District, Lanzhou City; Legal representative: Hu Zhaogui;
Business Scope: sales and maintenance of home appliance.
37) Xi’an Meiling Appliance Marketing Co., Ltd. (Xi’an Meiling for short) was
established dated 13 April 2011 with registered capital of RMB 3 million; Meiling Marketing
invested RMB 1.83 million, accounted for 61% of the registered capital; after the Company
acquired 24% equity from the minority shareholders, the Company totally holds 85% equity of
the Xi’an Meiling Appliance Marketing Co., Ltd.; enterprise type: limited company; address
and business place: No.10715, 7/F, 1 Unit, #12 Building, Xinxing Junjin Garden, No. 369
Jinhua Rd., Xincheng District, Xi’an City; Legal representative: Hu Zhaogui; Business Scope:
sales and maintenance of home appliance.
38) Guangzhou Meiling Appliance Marketing Co., Ltd. (Guangzhou Meiling for short)
was established dated 13 May 2011 with registered capital of RMB 5 million; Meiling Marketing
invested RMB 4.3 million, accounted for 86% of the registered capital; the Company entered
into equity transferred agreement with minority shareholders in 2014, transferred 12% equity of
Guangzhou Meiling held by the minority, after equity transferred completed in December 2014,
the Company totally holds 98% equity of the Guangzhou Meiling; enterprise type: limited
company; address and business place: 2/F, No. 98 Tanxin Street, Dongheng Rd., Baiyun
District, Guangzhou City; Legal representative: Zhou Wenhui; Business Scope: wholesales and
maintenance of home appliance.
204
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
39) Jinan Meiling Appliance Marketing Co., Ltd. (Jinan Meiling for short) was established
dated 3 June 2011 with registered capital of RMB 3 million; Meiling Marketing invested RMB
1.08 million, accounted for 36% of the registered capital; enterprise type: limited company;
address and business place: No.249, Huangqiao Industry Park, Donglihe West Rd., Tianqiao
District, Jinan City; Legal representative: Liu Xiangyang; Business Scope: sales and
maintenance of home appliance.
40) ChanghongRubaTradingCompany(Private)Limited (ChanghongRuba for short) was
approved by ―Reply on Review of Jointly Established a Manufacture and Sales Platform
Project in Pakistan by Zhongshan Changhong Appliance Co., Ltd‖ [Yue Fa Gai Wai Zi (2011)
No. 958] issued by Development and Reform Commission of Guangdong Province dated 5
August 2011, and jointly invested by Zhongshan Changhong Appliance Co., Ltd and UAE
RUBAGENERALTRADINGFZE (UAE RUBA for short). Register capital amounting to $ 6
million, Zhongshan Changhong Appliance Co., Ltd invested $ 3.6 million in cash, accounted
for 60% of the shareholding, while UAE RUBA contributes $ 2.4 million in cash with 40% of
the shares held. Register place located in Lahore, Pakistan; legal representative: Teng
Guangsheng; business scope: sales of AC products and other home appliance.
41) Sichuan Changhong Air-conditioners Co., Ltd.(Changhong Air-conditioner for short),
a limited liability company jointly set up by Sichuan Changhong and Changhong Chuangtou,
was founded on November 28, 2008. Its registered capital was RMB 200 million upon
establishment, of which, Sichuan Changhong invested RMB 298 million (RMB 210,088,900
invested by monetary capital while RMB 87,911,100 invested by real material), equivalent to
RMB 198 million shares, accounting for 99% of the registered capital; and Changhong
Chuangtou invested RMB 3 million, accounting for 1% of the registered capital with equivalent
of RMB 2 million shares. The registered capital receipt was verified by the verification report
[CGYYZ (2008) No. 177] of Sichuan Guangyuan 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.
Registration No. of the Business License of Corporation Legal Person: 510706000013788;
organization code of No. 68236997-1; Address: No.35, Mianxing East Road, Gaoxin District,
Mianyang City; Legal Representative: Li Wei; Business Scope: R&D, manufacturing, sales and
after-sales services of air conditioners, ASHPWH and parts, equipment rental, external
processing services of spare parts, and sales of metal materials (excluding gold and silver),
sales, installment and services of mechanical and electrical equipment.
42) Zhongshan Changhong Appliance Co., Ltd.( 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 RMB 72 million, including
205
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
RMB 69.3 million biding for the estate/ non-estate from original Zhongshan Sanrong
Air-conditioner Co., Ltd. And its patent use-right of RMB2.7 million, accounting for 90% of
the registered capital; Chine Minmetals invested RMB 8 million 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 RMB 36 million to Zhongshan Changhong, Changhong AC
increased RMB 4 million. After capital increased, registered capital of Zhongshan Changhong
turns to RMB 120 million, including RMB 108 million contributed by the Company, accounted
for 90% of the registered capital, Changhong AC invested RMB 12 million, accounted for 10%
of the registered capital.
Ended as 31 December 2014, registration No. of the Business License of Corporation
Legal Person: 442000000290879; Legal Representative: Du Zhixiao; Address: Central Nantou
Avenue, Nantou Town, Zhongshan City; Business Scope: air-conditioner, refrigerator and
freezer, heat pump, water heater, air cooler, electric fan, humidifier, electric heater and spare
parts of the above mentioned products, sales of products in and out of China. Engaged in
import and export business of the self-produced products and raw materials, equipment and
technology (excluding the items restricted by the State; no manage products of the state trading
involved; pursuit to the procedures of the State for products with quota, license and trade
management involved)
43) Hefei Meiling Group Holding Co., Ltd (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 RMB 113.2 million.
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 RMB 80 million, and have been verified by the [AD(2010)YZD No. 016] from Anhui
Anding CPAs Co., Ltd.
Registration No. of the Business License of Corporation Legal Person: 340100000010841;
address: Main plant of 2# South, Tangkou Road, Lianhua Road East, Economy&Technology
Development Zone, Hefei; Legal Representative: Li Wei; Business Scope: Manufacture of
washing machine, plastic products, fine welded pipe, cooling fittings, package products and decoration
products; Self-produced products and raw&auxilary materials, machinery equipment, instrument and
sales of department store, refrigerator, ice box, air conditioner, small appliances and household
206
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
appliances.
44) Meiling Equator Appliance (Hefei) Co., Ltd.( Equator Appliance for short) 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 RMB 24,793,200 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.
Registration No. of the Business License of Corporation Legal Person: 340100000004040;
address: Meiling Industry Zone, Development Zone, Feidong Xinchang, Hefei City; Legal
Representative: Huang Danian; Business Scope: Research, manufacture and sales of Roller washing
machine, wave automatically washing machine, wave double-tube washing machine and other
appliance; Manufactures and sales of the controller and matching line of refrigerator, washing machine,
air-conditioner and other household appliance
45) Hefei Equator Appliance Co., Ltd.( Equator Appliance) was jointly set up by original
Meiling Group and Yingkaite Appliance on September 26, 2007. Its register capital was RMB 12
million, among which, original Meiling Group invested RMB 8,670,600 in monetary capital,
accounting 72.255% in registered capital; Equator Appliance invested RMB 3,329,400 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.
Registration No. of the Business License of Corporation Legal Person: 340122000001532;
address: (No.15 Jinyang Road) Meiling Industrial Zone, Development Zone, Feidong Xinchang,
Hefei City; Legal Representative: Huang Danian; Business Scope: Manufacture and operation on
cooling appliance, washing machine and plastic products; operational of the self-produced products on
raw&auxilary materials as well as import&export business (projects limited by the national excluded)
46) Hefei Meiling Nonferrous Metal Products Co., Ltd. (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
207
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
[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 RMB 24,286,808.00 after
transference, and was not the joint-venture any more.
Registration No. of the Business License of Corporation Legal Person: 340100000111925;
address: Liaoyuan Road West, Xincheng Development Zone, Feidong County; Legal
Representative: Huang Danian; Business Scope: Manufacture and sales various copper tube, line
materials and other metal products
47) Hefei Meiling Packing Products Co., Ltd. (Packing Products) was the Sino-foreign joint
venture jointly set up by Hefei Paper Box Plant, original Meiling Group and Singapore Anda
Development Co., Ltd in December 1993, which approved by [HWJZ(1993) No. 0444] of Foreign
Trade and Economic Committee of Hefei City with its register capital of US$ 3.067 million.
The register capital while established have been verified by [HKHY(1995) No. 5] from original
Hefei CPAs Co., Ltd. On December 30, 2002, being approved by [HWJ(2002) No. 259] of
foreign trade Economic Cooperation Bureau of Hefei City, 48.28% equity owned by Hefei
Paper Box Plant transferred to the Company. On June 17, 2005, 25% equity owned by
Singapore Anda Development Co., Ltd transferred to original Meiling Group freely by one-time. The
Company turned into domestic-capital enterprise from foreign-capital enterprise with changed
registered capital of RMB 18.4 million. The re-register of register capital being verified by
[WCQYZ(2005) No. 256] from Anhui CHengqin CPAs Co., Ltd. After equity transferred, the
Company invested RMB 8.88 million accounting 48.28% in register capital while Meiling
Group invested RMB9.52 million with 51.72% in register capital. Resolution from the 46th
meeting of 6th session of the Board, while purchasing Meiling Group, the assets and liabilities
of Meiling Packaging Products Co., Ltd., which are not included in transfer-in assets, will
derivate into the Hefei Xingmei Assets Management Co., Ltd., the former Meiling Packaging
Products Co. reduced its capital as RMB 17.4 million, and registered changed for industrial and
commerce have completed on 27 June 2011.
Registration No. of the Business License of Corporation Legal Person: 3401001007135;
Address: Meiling Industry Zone,Dong twenty bu, Hefei City; Legal Representative: Huang
208
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
Danian; Business Scope: Manufacture and sales of corrugated board, paper boxes, paper element,
EPS, foam package materials and aluminium foil sealing tape and housing rental.
(2) Major non-wholly-owned subsidiary
Dividend
Gains/losses Balance of
Shareholdi distributed to
attributable to minority’s
Subsidiary ng of minority
minority in the interest at
minority announced in the
Year year-end
Year
Zhongke Meiling Cryogenic Technology
30% 730,019.90 - 28,963,406.41
Co., Ltd.
(3) Financial information for major non-wholly-owned subsidiary
Ending balance
Subsidiary Non-current
Current assets Non-current assets Total assets Current liabilities Totalliabilities
liability
Zhongke
112,718,923.57 19,554,830.69 132,273,754.26 35,729,066.21 - 35,729,066.21
Meiling
(Continued)
Opening balance
Subsidiary Non-current
Current assets Non-current assets Total assets Current liabilities Totalliabilities
liability
Zhongke
128,850,510.99 4,947,756.41 133,798,267.40 39,686,979.03 39,686,979.03
Meiling -
(Continued)
Current Period
Subsidiary Total comprehensive Cash flow from
Operation income Net profit
income operation activity
Zhongke
42,750,432.40 2,433,399.68 2,433,399.68 -1,782,467.56
Meiling
(Continued)
A year earlier
Subsidiary Total comprehensive Cash flow from
Operation income Net profit
income operation activity
Zhongke
31,239,460.06 3,578,214.86 3,578,214.86 1,073,977.33
Meiling
(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
209
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
2. Changes of owner’ equity shares in subsidiary and its impacts
Hefei White
Item Hangzhou Meiling Zhengzhou Meiling Guangxi Huidian Guiyang Meiling LuoheMeiling Total
Household Appliances
Originalratio ofsharesheld 85.00% 88.50% 46.00% 64.00% 44.00% 99.60%
Equitypurchased fromminority 10.00% 6.50% 39.00% 36.00% 42% 0.40%
Ratioofsharesheld atperiod-end 95.00% 95.00% 85% 100.00% 86.00% 100.00%
Cash 10.00 7.00 5.00 2.00 14.00 20,000.00 20,038.00
Acquisition cost/totaldisposalconsideration 10.00 7.00 5.00 2.00 14.00 20,000.00 20,038.00
Less: net assets of subsidiary measured by equity
-305,138.77 -859,991.18 -2,964,276.36 -2,935,006.60 -895,946.91 21,463.41 -7,938,896.41
sharesobtained bydisposed
Balance 305,148.77 859,998.18 2,964,281.36 2,935,008.60 895,960.91 -1,463.41 7,958,934.41
Including:
-305,148.77 -859,998.18 -2,964,281.36 -2,935,008.60 -895,960.91 1,463.41 -7,958,934.41
Capitalpublicreserveadjusted
Surpluspublicreserve adjusted - - - - - - -
Retained profitadjusted - - - - - - -
Purchased minority’s equity of marketing subsidiary in the Period, balance between the long-term equity investment newly obtained and the net
assets shares enjoy according to the new share-holding proportion since purchasing date amounting to -7,958,934.41 Yuan in total, and reckoned into
capital public reserve
210
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
3. Equity in joint venture or affiliated enterprise
(1) Major joint venture or affiliated enterprise
Share holding
(%) Accounting
treatment for
Joint venture or affiliated enterprise Main office Registe Business investment of
place r place nature Direct Indire
ly ctly joint venture
or affiliated
enterprise
1.ChanghongRubaElectricCompany Lahore, Manufactures,
Lahore - 40.00 Equity
(Private)Ltd. Pakistan sales
2.Hefei Xingmei Assets Management Co., Rental,
Hefei Hefei 48.28 - Equity
Ltd. agency
3.Sichuan Ejar Network Technology Co., Mianya
Mianyang Sales 30.00 - Equity
Ltd. ng
(2) Financial information for major Joint venture: Nil
(3) Financial information for affiliated enterprise
Ending balance / Current Period Opening balance / Last Period
ChanghongRubaElect HefeiXingmei Sichuan Ejar ChanghongRubaElect HefeiXingmei
Item Assets Network Assets
ricCompany ricCompany
Management Technology Co.,Ltd. Management Co.,
(Private)Ltd. Co.,Ltd. (Private)Ltd Ltd.
Current assets: 80,909,600.18 4,047,926.00 932,327,169.16 61,531,111.48 3,967,411.07
Including: cash and cash
10,140,355.75 941,721.50 128,984,498.65 1,695,264.18 911,126.07
equivalent
Non-current assets 46,680,248.17 24,515,216.88 3,162.84 16,469,584.73 25,009,461.78
Total assets 127,589,848.35 28,563,142.88 932,330,332.00 78,000,696.21 28,976,872.85
Current liability 32,471,532.63 1,822,764.74 903,717,516.40 58,747,740.71 1,901,924.77
Mom-current liability - - - - -
Total liabilities 32,471,532.63 1,822,764.74 903,717,516.40 58,747,740.71 1,901,924.77
Minority’s interest
Equity attributable to shareholder
95,118,315.72 26,740,378.14 28,612,815.60 19,252,955.50 27,074,948.08
of parent company
Share of net assets measured by
38,047,326.29 12,910,254.56 8,583,844.68 7,701,182.20 13,071,784.93
shareholding
Adjustment item - -
--Goodwill - -
Unrealized profit of the internal
6,209,378.89 6,561,962.92 -
downstream transactions
Unrealized profit of the internal
155,907.33 235,752.83 -
upstream transactions
Other -
Book value of the equity 31,993,854.73 12,910,254.56 8,583,844.68 1,139,219.28 13,071,784.93
211
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
investment for affiliate
Fair value of equity investment
for the affiliates with - -
consideration publicly
Operation income 53,465,851.90 718,954.00 779,965,255.17 43,186,053.61 859,871.00
Financial expenses 41,481.34 -2,629.60 -31,655.82 20,480.19 -1,193.69
Income tax expenses - 4,755.05 - - -
Net profit 1,017,466.19 -334,569.94 -21,387,184.40 987,548.20 -197,018.85
Net profit of discontinuing
- - - - -
operation
Other comprehensive income - - - - -
Total comprehensive income - - - - -
Dividend received from affiliates
- - - - -
in theYear
(4) Financial summary for non-important Joint venture and affiliate enterprise
Ending balance / Current
Item Opening balance / Last Year
Year
Affiliate:
Total book value of investment 24,608,280.78 -
Total amount measured by shareholding
ratio
--net profit -2,999,088.58 -3,484,591.50
--Other comprehensiveincome
-- Total comprehensiveincome - -
(5) major limitation on capital transfer ability to the Company from joint venture or
affiliates: Nil
(6) excess loss occurred in joint venture or affiliates: Nil
(7) Unconfirmed commitment with joint venture investment concerned: Nil
(8) Intangible liability with joint venture or affiliates investment concerned: Nil
4. Major conduct joint operation: Nil
5. Structured body excluding in consolidate financial statement: Nil
9. Relevant risks related with financial instrument
The major financial instruments of the Company include borrowings, account receivables,
account payables, transactional financial assets, transactional financial liabilities, the details of
which are set out in Note 6. 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.
212
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
In connection with exchange risks, in order to prevent from exchange risks arising from
foreign currency transaction amount, foreign currency dominated loans and interest expenditure,
the Company entered into several forward exchange contracts with banks. Fair value of the
forward exchange contract which has been recognized as derivative financial instrument as of
31 December 2014 has been included in profits and losses. As export business is increasing, if
risks that are out of control of the Company occur such as appreciation of RMB, the Company
will mitigate the relevant risks by adjusting its sales policy.
The Company’s interest rate risk arises from bank borrowings and interest-bearing debt.
Financial liabilities at floating rate expose the Company to cash flow interest rate risk, and
financial liabilities at fixed rate expose the Company to fair value interest rate risk. The
Company will determine the respective proportion of contracts at fixed and floating rates based
on the prevailing market conditions. As of 30 June 2015, the interest-bearing debts mainly
referred to borrowing contracts at floating rate denominated in RMB with total amount of
7,292,800.00 and borrowing contracts at fixed rate denominated in USD with total amount of
336,742,739.05. Risks relating to change of fair value of financial instruments arising from
movement of interest rate mainly related to bank borrowings at fixed rate. As for borrowings at
fixed rate, the Company aims to keep its floating rate. Risks relating to change of cash flow of
financial instruments arising from movement of interest rate mainly related to bank borrowings
at floating rate. The Company establishes its policy to keep floating rate for these borrowings
so as to eliminate fair value risk arising from movement of interest rate.
10. Fair value
1. Assets and liabilities measured by fair value at year-end and level of fair value
measurement
F ai r v al u e at p e r i o d - e n d
Item
st
1 level 2nd level 3rd level Total
I. Continuous measure of fair value
(I) Financial assets measured by fair value and with
3,572,100.00 3,572,100.00
variation reckoned into current gains/losses
1. transactional financial assets 3,572,100.00 3,572,100.00
(1) debt instrument investment
(2) equity instrument investment
(3) Derivative financial assets(3) derivative finance
3,572,100.00 3,572,100.00
assets
(4) Other
2. Assign financial assets measured by fair value and
- -
with variation reckoned into current gains/losses
1. Valuation technology adopted in continuous and non-continuous level II fair value
measurement, together with qualitative and quantitative information of major parameters
213
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
Fair value represents the price a market participator can receive or needs to pay for
disposing an asset or transferring a liability in an orderly transaction occurred on the
measurement date. Our derivative contract is measured based on level II fair value, namely the
contract’s immediate quotation in a foreign exchange market on balance sheet date.
2. Assets and liabilities not measured by fair value but disclosed by fair value: Nil
11. Related parties and related transaction
(I)Relationship of related parties
1. Controlling shareholder and ultimate controller
(1) Controlling shareholder and ultimate controller
Controlling shareholder and ultimate Place of Legal
Type of Nature of Organization
registra representat
entity business code
controller tion ive
Stock Mianya Manufacture
Sichuan Changhong Electric Co., Ltd. Zhao Yong 20541230-8
company ng and sales
Sichuan Changhong Electronics Holding Limited Mianya Manufacture
Zhao Yong 72081866-0
Group Co., Ltd. company ng and sales
(2) Register capital and change thereof of controlling shareholder
Increase Decrease
Controlling shareholder Opening balance during the during the Ending balance
year year
Sichuan Changhong Electric Co., Ltd. 4,616,244,222 - - 4,616,244,222
(3)Shares held by the controlling shareholder and its changes on equity
Amount of shares held Shareholding ratio
Controlling shareholder Ratio at
Ending balance Opening balance Ratio at year-end
year-begin
Sichuan Changhong Electric Co., Ltd. 189,994,153 189,994,153 24.88% 24.88%
2. Subsidiary
Found more in Note ―VIII. 1 (1) Enterprise group composition‖
3. Joint venture and Affiliated enterprise
Major Joint venture and affiliated enterprise of the Company found more in Note ―VIII. 3 (1) major
Joint venture and Affiliated enterprise‖. Other Joint venture and affiliated enterprise that have related
transactions occurred with the Company in the Year or occurred in last period, and with balance results:
Joint venture and Affiliated enterprise Relationship
Hefei Meiling Solar Energy Technology Co., Joint venture and Affiliated enterprise of Meiling Group
Joint venture and Affiliated enterprise of subsidiary
Changhong Ruba Electric Company (Private)Ltd.
Zhongshan Changhong
Sichuan Tianyou Guigu Technology Co., Ltd. Joint venture and Affiliated enterprise of subsidiary
214
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
Joint venture and Affiliated enterprise Relationship
Sichuan Air-Conditioner
Sichuan Ejar Network Technology Co., Ltd. Joint venture and Affiliated enterprise of the company
Hefei Xingmei Assets Management Co., Ltd. Joint venture and Affiliated enterprise of the company
4. Other related parties
Other related parties Relationship
Control by same controlling shareholder and ultimate
PT.ChangHongElectriCinDonesia
controller
Control by same controlling shareholder and ultimate
Chengdu Lejiayi Trading Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Fuzhou Lejiayi Trading Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Guangdong Changhong Electrics Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Guangdong Changhong Ridian Technology Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Hefei Changhong Industrial Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Huayi Compressor Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Jinan Lejiayi Trading Co., Ltd.
controller
Jiangxi Changhong Electronic Technology Development Control by same controlling shareholder and ultimate
Co., Ltd. controller
Control by same controlling shareholder and ultimate
Kunming Yijiahong Trade Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Lejiayi Chain Management Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Mianyang Hongfa Technology Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Mianyang Lejiayi Trading Chain Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Sichuan Hongrui Electrics Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Sichuan CCO Display Technology 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 Packing & Printing Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Sichuan Changhong Power Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Sichuan Changhong Electronic System 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 Changhong Jijia Jinggong Co., Ltd.
controller
Sichuan Changhong Precision Electronic Technology Co., Control by same controlling shareholder and ultimate
Ltd. controller
Control by same controlling shareholder and ultimate
Sichuan Changhong Minsheng Logistic Co., Ltd.
controller
215
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
Other related parties Relationship
Control by same controlling shareholder and ultimate
Sichuan Changhong Mold Technology Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Sichuan Changhong Devices Technology Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Sichuan Changhong Xinrui Technology 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
Taiyuan Lejiayi Trading Chain Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Tianjin Lejiayi Trading Co., Ltd.
controller
Control by same controlling shareholder and ultimate
CHANGHONG ELECTRIC (AUSTRALIA)
controller
Control by same controlling shareholder and ultimate
Zhongshan Guanghong Mold Technology Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Chongqing Hongshenghuo Trading Co., Ltd.
controller
Control by same controlling shareholder and ultimate
081 Electronic Group Co., Ltd.
controller
Control by same controlling shareholder and ultimate
081 Electronic Group Sichuan Liyuan Electronic Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Mianyang Hongrun Electronic Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Changhong (H.K.) Trading Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Sichuan Huafeng Corp. Group
controller
Control by same controlling shareholder and ultimate
Sichuan Kuaiyidian Appliance Service Chain Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Sichuan Hongyu Metal Manufacture Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Wandao Network Technology Co., Ltd.
controller
Control by same controlling shareholder and ultimate
ChangHong Electric Middleeast FZE
controller
Control by same controlling shareholder and ultimate
Sichuan Changhong Gerun Renewable Resources Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Xi’an Lejiayi Trading Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Sichuan Jiahong Industrial Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Sichuan Changhong Power Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Sichuan Changhong Lighting 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 Network Technology Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Chengdu Changhong Electric Technology Co., Ltd.
controller
Guangyuan Hongcheng Industrial Co., Ltd. Control by same controlling shareholder and ultimate
216
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
Other related parties Relationship
controller
Control by same controlling shareholder and ultimate
Guangyuan Changhong Molding Technology Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Sichuan Changhong International Travel Agency Ltd,
controller
Control by same controlling shareholder and ultimate
Sichuan Ejar Network Technology Co., Ltd.
controller
Control by same controlling shareholder and ultimate
BVCH Optronics (Sichuan) Co., Ltd.
controller
Affiliate enterprise of controlling shareholder and actual
Mianyang Highly Electric Co., Ltd.
controller
Affiliate enterprise of controlling shareholder and actual
Sichuan Changhe Technology Co., Ltd.
controller
Affiliate enterprise of controlling shareholder and actual
Sichuan Changxin Refrigeration Parts Co., Ltd.
controller
Fuyang Weiao Meiling Appliance Marketing Co., Ltd. A stock-jointly enterprise of the subsidiary before June 2015
(II) related transactions
1. Purchasing commodity
Current Year Last Year
Related parties Content
(10 thousand Yuan) (10 thousand Yuan)
Sichuan Changhong Electric Co., Ltd. Purchasing commodity 7,272.32 6,370.99
Huayi Compressor Co., Ltd. Purchasing commodity 28,354.30 34,111.22
Sichuan Changhong Mold Technology Co., Ltd. Purchasing commodity 17,951.28 20,224.04
Sichuan Changhong Jijia Jinggong Co., Ltd. Purchasing commodity 10,254.28 9,936.91
Sichuan Changhong Packing & Printing Co., Ltd. Purchasing commodity 2,634.77 2,520.67
Sichuan Changhong Precision Electronic
Purchasing commodity 346.07 376.21
Technology Co., Ltd.
Sichuan Jiahong Industrial Co., Ltd. Purchasing commodity - 0.52
Sichuan Changhong New Energy Technology Co.,
Purchasing commodity 37.89 49.21
Ltd.
081 Electronic Group Sichuan Liyuan Electronic
Purchasing commodity 163.70 610.14
Co., Ltd.
Mianyang Hongrun Electronic Co., Ltd. Purchasing commodity 471.38 865.15
Guangdong Changhong Electrics Co., Ltd. Purchasing commodity 305.37 45.63
Zhongshan Guanghong Mold Technology Co., Ltd. Purchasing commodity 99.22 2.47
Sichuan Hongyu Metal Manufacture Co., Ltd. Purchasing commodity 34.77 38.95
Sichuan Changhong Electronic Devices Co., Ltd. Purchasing commodity 2,111.91 2,742.98
Mianyang Hongfa Technology Co., Ltd. Purchasing commodity 49.27 133.63
Guangdong Changhong Ridian Technology Co.,
Purchasing commodity 97.94 -
Ltd.
Sichuan Changhong Xinrui Technology Co., Ltd. Purchasing commodity 4,355.12 6,273.78
Sichuan Changhong Power Co., Ltd. Purchasing commodity - 2.29
Sichuan Hongwei Technology Co., Ltd. Purchasing commodity 17.75 -
Sichuan Changhe Technology Co., Ltd. Purchasing commodity 181.61 188.95
Sichuan Changxin Refrigeration Parts Co., Ltd. Purchasing commodity 9,365.67 12,168.66
Mianyang Highly Electric Co., Ltd. Purchasing commodity 10,254.53 9,982.37
Sichuan Jinghong Packaging Products Co., Ltd. Purchasing commodity - 1,095.17
217
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
Current Year Last Year
Related parties Content
(10 thousand Yuan) (10 thousand Yuan)
Total 94,359.15 107,739.94
2.labor service receive
Related parties Content Current Year Last Year
Sichuan Changhong Minsheng Logistic Co., Ltd. labor service receive 174,173,170.24 165,899,805.70
Sichuan Kuaiyidian Appliance Service Chain Co.,
labor service receive 57,354,122.67 61,099,395.11
Ltd.
Sichuan Changhong Electric Co., Ltd. labor service receive 4,422,250.09 9,832,307.86
Sichuan Hongwei Technology Co., Ltd. labor service receive 581,150.94 711,735.85
Guangdong Changhong Electrics Co., Ltd. labor service receive 26,378.96 66,923.93
Zhongshan Guanghong Mold Technology Co.,
labor service receive - 47,417.29
Ltd.
Sichuan Changhong Mold Technology Co., Ltd. labor service receive 12,279.45 -
Sichuan Changhong Jijia Jinggong Co., Ltd. labor service receive 4,304.00 -
Sichuan Jiahong Industrial Co., Ltd. labor service receive 14,390.60 23,915.70
Changhong (H.K.) Trading Co., Ltd. labor service receive 8,846.15 -
Total 236,596,893.10 237,681,501.44
3. receive fuels and energy
Related parties Content Current Year Last Year
Huayi Compressor Co., Ltd. receive fuels and energy 192,958.98 610,620.07
Sichuan Changhong Electric Co., Ltd. receive fuels and energy 5,321,532.77 8,123,152.39
Total 5,514,491.75 8,733,772.46
4. Sales of goods/ labor service providing
Current Year
Last Year
Related parties Content (10 thousand Yuan)
(10 thousand Yuan)
Sichuan Changhong Electric Co., Ltd. Sales of goods 54,224.47 88,691.22
Sichuan Changhong Electronics Holding Group Co.,
Sales of goods - -4.87
Ltd.
Sichuan Changhong Jijia Jinggong Co., Ltd. Sales of goods 1,697.64 1,628.42
Sichuan Changhong Mold Technology Co., Ltd. Sales of goods 5,206.48 6,371.52
Sichuan CCO Display Technology Co., Ltd. Sales of goods - 79.35
Mianyang Lejiayi Trading Chain Co., Ltd. Sales of goods 104.48 612.82
Lejiayi Chain Management Co., Ltd. Sales of goods 178.30 -
081 Electronic Group Co., Ltd. Sales of goods -8.49 -
ChanghongEuropeElectrics.r.o Sales of goods 92.42 -
Changhong (H.K.) Trading Co., Ltd. Sales of goods 27,291.35 7,132.24
Chengdu Changhong Property Co., Ltd. Sales of goods 1.38 -
Anhui Xinhao PDP Co., Ltd. Sales of goods 53.85 -
218
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
Current Year
Last Year
Related parties Content (10 thousand Yuan)
(10 thousand Yuan)
Sichuan Changhong Xinrui Technology Co., Ltd. Sales of goods 2,216.58 4,817.86
Sichuan Changhong International Hotel Co., Ltd. Sales of goods -2.56 -
Sichuan Hongwei Technology Co., Ltd. Sales of goods 2.44 0.81
Sichuan Hongxin Software Co., Ltd. Sales of goods - 36.78
Chongqing Hongshenghuo Trading Co., Ltd. Sales of goods 75.79 46.61
Sichuan Changhong Devices Technology Co., Ltd. Sales of goods 14.70 -
Sichuan Changhong New Energy Technology Co.,
Sales of goods - 1.02
Ltd.
CHANGHONG ELECTRIC (AUSTRALIA) Sales of goods - 640.89
Guangdong Changhong Ridian Technology Co., Ltd. Sales of goods 478.27 -
Sichuan Changhong Packing & Printing Co., Ltd. Sales of goods 21.16 58.41
Sichuan Changhong Precision Electronic
Sales of goods 14.92 -
Technology Co., Ltd.
Sichuan Changhong Minsheng Logistic Co., Ltd. Sales of goods 0.08 43.36
081 Electronic Group Sichuan Liyuan Electronic
Sales of goods 2.45 -
Co., Ltd.
Sichuan Kuaiyidian Appliance Service Chain Co.,
Sales of goods 286.92 528.23
Ltd.
Sichuan Changhong Power Co., Ltd. Sales of goods - 4.10
Sichuan Changhong Gerun Renewable Resources
Sales of goods 445.82 378.71
Co., Ltd.
Hefei Changhong Industrial Co., Ltd. Sales of goods 209.32 93.12
Zhongshan Guanghong Mold Technology Co., Ltd. Sales of goods - 0.14
Sichuan Changhong Electronic Devices Co., Ltd. Sales of goods 22.76 0.85
Chengdu Changhong Minsheng Logistic Co., Ltd. Sales of goods 4.20 -
Sichuan Huafeng Corp. Group Sales of goods 3.13 -
Guangdong Changhong Electrics Co., Ltd. Sales of goods - 1.36
Huayi Compressor Co., Ltd. Sales of goods - 1.55
Sichuan Changhong Network Technology Co., Ltd. Sales of goods - 3.28
Chengdu Changhong Electric Technology Co., Ltd. Sales of goods - 575.60
Guangyuan Hongcheng Industrial Co., Ltd. Sales of goods 0.03 -
Guangyuan Changhong Molding Technology Co.,
Sales of goods 2.99 -
Ltd.
Sichuan Ejar Network Technology Co., Ltd. Sales of goods 27,806.61 -
Mianyang Highly Electric Co., Ltd. Sales of goods 0.46 -
Sichuan Changxin Refrigeration Parts Co., Ltd. Sales of goods 2,630.30 3,955.99
Hefei Meiling Solar Energy Technology Co., Sales of goods 55.73 -
CHANGHONGRUBAELECTRICCO.,LTD Sales of goods 1,335.98
Guangxi Huidian Home Appliance Co., Ltd. Sales of goods - 4,021.03
Fuyang Weiao Meiling Appliance Marketing Co.,
Sales of goods 333.75 7,761.69
Ltd.
219
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
Current Year
Last Year
Related parties Content (10 thousand Yuan)
(10 thousand Yuan)
Total 124,803.71 127,482.09
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 Fuel and energy providing
Related parties Content Current Year Last Year
Guangdong Changhong Electrics Co., Ltd. Fuel and energy providing 315,249.10 243,586.93
Sichuan Changhong Minsheng Logistic Co., Ltd. Fuel and energy providing 11,959.67 11,698.34
Sichuan Kuaiyidian Appliance Service Chain Co., Ltd. Fuel and energy providing 68.38 -
Zhongshan Guanghong Mold Technology Co., Ltd. Fuel and energy providing 751.56 741.90
Sichuan Hongwei Technology Co., Ltd. Fuel and energy providing 218.23 -
Sichuan Changhong Jijia Jinggong Co., Ltd. Fuel and energy providing 211,756.53 73,535.57
Sichuan Changhong Mold Technology Co., Ltd. Fuel and energy providing 3,255,867.17 3,487,083.69
Guangdong Changhong Ridian Technology Co., Ltd. Fuel and energy providing 1,173.07 1,468.91
Sichuan Kuaiyidian Appliance Service Chain
Fuel and energy providing - 1,089.83
Corporation
Total 3,797,043.71 3,819,205.17
6 related rental
(1) Renting
Type of Leasing income
Leasing income last
Lessor Lessee assets recognized in
year
leasing this year
Hefei Meiling
Sichuan Changhong Jijia Jinggong Co., Ltd. Plant 233,280.00 233,280.00
Co.,Ltd.
Hefei Meiling Forklift
Sichuan Changhong Jijia Jinggong Co., Ltd. 23.12 -
Co.,Ltd. truck
Hefei Meiling Sichuan Changhong Mold Technology Co.,
Plant 647,190.00 647,190.00
Co.,Ltd. Ltd.
Hefei Meiling Sichuan Changhong Xinrui Technology Co., Forklift
389.15 -
Co.,Ltd. Ltd. truck
Changhong
BVCH Optronics (Sichuan) Co., Ltd. Goods lift 63,720.00 63,720.00
Air-Conditioner
Zhongshan
Guangdong Changhong Electrics Co., Ltd. Plant 143,924.24 34,871.24
Changhong
Zhongshan Guangdong Changhong Electrics Co., Ltd. Trade center 492,170.06 390,093.20
220
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
Type of Leasing income
Leasing income last
Lessor Lessee assets recognized in
year
leasing this year
Changhong
Zhongshan Guangdong Changhong Ridian Technology
2# livingarea 14,472.57 18,241.14
Changhong Co., Ltd.
Zhongshan
Sichuan Hongwei Technology Co., Ltd. 2# livingarea 3,393.06 -
Changhong
Zhongshan Sichuan Changhong Minsheng Logistic Co.,
2# livingarea 24,690.82 3,135.45
Changhong Ltd.
Zhongshan Sichuan Changhong Minsheng Logistic Co.,
Trade center 3,388.28 18,642.96
Changhong Ltd.
Zhongshan Zhongshan Guanghong Mold Technology Co.,
2# livingarea 5,829.64 4,784.71
Changhong Ltd.
Mianyang Sichuan Changhong Packing & Printing Co., Rentalof
2,264.15 5,203.02
Refrigeration Ltd. warehouse
Mianyang Sichuan Changhong Mold Technology Co., Rentalof
32,943.40 38,433.96
Refrigeration Ltd. warehouse
Mianyang Rentalof
Sichuan Changhe Technology Co., Ltd. 135.85 273.21
Refrigeration warehouse
Mianyang Rentalof
Sichuan Changxin Refrigeration Parts Co., Ltd. 452.83 2,092.08
Refrigeration warehouse
Mianyang Rentalof
Sichuan Jinghong Packaging Products Co., Ltd. - 679.25
Refrigeration warehouse
Sichuan Changhong Mold Technology Co.,
JiangxiElectric Rentalof Plant 225,960.00 225,960.00
Ltd.
JiangxiElectric Sichuan Changhong Jijia Jinggong Co., Ltd. Rentalof Plant 67,032.00 -
Machinery
JiangxiElectric Sichuan Changhong Jijia Jinggong Co., Ltd. 49,743.59 -
equipment
Total 2,011,002.76 1,686,600.22
(2) Lessee of related parties
Leasing income
Type of assets Leasing income
Lessor Lessee recognized in this
leasing last year
year
Changhong
Sichuan Changhong Electric Co., Ltd. Plant 3,711,585.62 -
Air-Conditioner
Guangdong Changhong Ridian Zhongshan
Warehouse 280,000.00 -
Technology Co., Ltd. Changhong
Sichuan Changhong Electronics Holding Mianyang
Staffdormitory 2,800.00 -
Group Co., Ltd. Refrigeration
Mianyang
Sichuan Changhong Electric Co., Ltd. Office room 13,596.00 11,330.00
software
Appliance
Sichuan Changhong Electric Co., Ltd. Office room 49,743.59 323,153.02
marketing
Total 4,215,422.33 334,483.02
7. Related guarantee
Maximum guarantee Completed
Secured party Sponsored party Start End
amount (Y/N)
Zhongshan
Hefei Meiling 100,000,000.00 2014.11.01 2015.11.01 N
Changhong
Hefei Meiling Zhongshan 80,000,000.00 2015.03.30 2016.03.29 N
221
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
Maximum guarantee Completed
Secured party Sponsored party Start End
amount (Y/N)
Changhong
Zhongshan
Hefei Meiling 120,000,000.00 2014.12.03 2015.12.03 N
Changhong
Counter
guarantee:
Zhongshan
Hefei Meiling 100,000,000.00 2014.11.01 2015.11.01 N
Changhong
Zhongshan
Hefei Meiling 80,000,000.00 2015.03.30 2016.03.29 N
Changhong
Zhongshan
Hefei Meiling 120,000,000.00 2014.12.03 2015.12.03 N
Changhong
8. Assets transfer, debt restructuring of related parties
Related parties Type Current Year Last Year
Purchasing fixed
Sichuan Changhong Electric Co., Ltd. 2,464,230.77 1,517,721.34
assets
Purchasing fixed
Sichuan Hongxin Software Co., Ltd. 495,283.02 501,886.80
assets
Purchasing fixed
Sichuan Changhong Electronic System Co., Ltd. 329,059.83 -
assets
081 Electronic Group Sichuan Liyuan Electronic Purchasing fixed
59,829.06 -
Co., Ltd. assets
Purchasing fixed
Mianyang Hongfa Technology Co., Ltd. - 354,700.85
assets
Purchasing fixed
Sichuan Changhong Mold Technology Co., Ltd. - 1,257,928.21
assets
Sichuan Changhong New Energy Technology Co.,
Fixed assets sold 15,035.60 -
Ltd.
Sichuan Changhong Gerun Renewable Resources
Fixed assets sold - 447,081.71
Co., Ltd.
9. Related transaction with Changhong Finance Company
(1) saving balance
Related transaction Opening balance Ending balance Interest income
Bank savings 1,040,209,426.68 986,230,115.61 14,865,885.04
(2) notes discounted
Expenses of
Bank acceptance Bank acceptance
discounted
Related transaction
discounted
book discounted amount Cash paid
amount
Note receivable 690,307,526.33 682,830,807.37 7,476,718.96
(3) notes issued
Related transaction Issuing unit Note amount Type
Sichuan Changhong Group
Note payable 707,767,370.55 Bank acceptance
Finance Co., Ltd.
222
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
(III) Come and go balance with related parties
1. Receivables
Ending balance Opening balance
Bad
Item Related parties Bad debt debt
Book balance Book balance
provision provisio
n
Account
Sichuan Changhong Electric Co., Ltd. 28,089,032.01 - 6,775,359.64 -
receivable
Account Sichuan Changhong Electronics Holding
2,275,111.97 - 2,275,111.97 -
receivable Group Co., Ltd.
Account Sichuan Changhong Mold Technology Co.,
190,728.60 - 207,551.84 -
receivable Ltd.
Account Sichuan Changhong Xinrui Technology Co.,
2,424,835.04 - 2,078.83 -
receivable Ltd.
Account
ChanghongEuropeElectrics.r.o 699,340.82 -
receivable
Account
Chongqing Hongshenghuo Trading Co., Ltd. 534,632.00 -
receivable
Account
Hefei Changhong Industrial Co., Ltd. 2,006,971.17 - 2,161,717.28 -
receivable
Account
Huayi Compressor Co., Ltd. 263,800.00 - 1,063,400.00 -
receivable
Account Sichuan Changhong International Hotel Co.,
3,340,000.00 - 4,050,000.00 -
receivable Ltd.
Account
Sichuan Changhong Jijia Jinggong Co., Ltd. 6,450,682.20 - 297,217.00 -
receivable
Account Sichuan Changhong Minsheng Logistic Co.,
92,104.72 - - -
receivable Ltd.
Account Sichuan Kuaiyidian Appliance Service Chain
1,199,935.75 - 200,895.77 -
receivable Co., Ltd.
Account Sichuan Changhong Precision Electronic
235,643.84 - 61,041.23 -
receivable Technology Co., Ltd.
Account
Changhong (H.K.) Trading Co., Ltd. 179,424,265.83 - 110,975,853.15 -
receivable
Account Guangdong Changhong Ridian Technology
120,000.00 - 120,000.00 -
receivable Co., Ltd.
Account Chengdu Changhong Minsheng Logistic Co.,
- - 42,000.00 -
receivable Ltd.
Account
081 Electronic Group Co., Ltd. 1,986,640.00 - 2,086,000.00 -
receivable
Account Sichuan Changhong Electronic Devices Co.,
- - 64,949.99 -
receivable Ltd.
Account Chengdu Changhong Electric Technology Co.,
1,835,245.20 5,309,045.20
receivable Ltd.
Account Sichuan Changhong Gerun Renewable
0.60 - 1,855.46 -
receivable Resources Co., Ltd.
Account
Chengdu Changhong Property Co., Ltd. 783.90 -
receivable
Account
Sichuan Hongwei Technology Co., Ltd. 3,016.00 -
receivable
Account Sichuan Changhong Devices Technology Co.,
451,369.02 -
receivable Ltd.
223
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
Ending balance Opening balance
Bad
Item Related parties Bad debt debt
Book balance Book balance
provision provisio
n
Account
Yibing Hongxing Electronics Co., Ltd. 1,058,049.10 - 1,058,049.10 -
receivable
Account Sichuan Changhong Packing & Printing Co.,
2,400.00 - - -
receivable Ltd.
Account
Sichuan Ejar Network Technology Co., Ltd. 55,283,643.00 -
receivable
Account
Hefei Meiling Solar Energy Technology Co., - - 50,010.80 -
receivable
Account Fuyang Weiao Meiling Appliance Marketing
- - 10,628,035.60 -
receivable Co., Ltd.
Account
CHANGHONGRUBAELECTRICCO.,LTD 32,290,396.00 - 24,626,053.78 -
receivable
Account
Anhui Xinhao PDP Co., Ltd. 630,000.00 - - -
receivable
Account
Mianyang Highly Electric Co., Ltd. 172,800.00 - 172,800.00 -
receivable
Account Sichuan Changxin Refrigeration Parts Co.,
6,521,621.96 -
receivable Ltd.
Account paid in
Sichuan Changhong Electric Co., Ltd. 6,791,777.04 - 7,756,082.59 -
advance
Account paid in Sichuan Kuaiyidian Appliance Service Chain
- - 176,653.43 -
advance Co., Ltd.
Account paid in Sichuan Changhong Mold Technology Co.,
- - 171,714.91 -
advance Ltd.
Account paid in
Mianyang Hongfa Technology Co., Ltd. 583,346.50 - 497,968.81 -
advance
Other account
Sichuan Changhong Electric Co., Ltd. - - 13,500.00 -
receivable
Other account
Sichuan Ejar Network Technology Co., Ltd. 156,000.00 -
receivable
Total 335,114,172.27 180,844,946.38
2. payables
Item Related parties Ending balance Opening balance
Account Sichuan Changhong Electronics Holding Group
60,553.56 60,553.56
payable Co., Ltd.
Account
Sichuan Changhong Electric Co., Ltd. 33,591,932.78 27,737,562.90
payable
Account
Sichuan Changhong Mold Technology Co., Ltd. 121,597,507.38 67,897,349.69
payable
Account
Huayi Compressor Co., Ltd. 117,594,656.62 108,783,172.50
payable
Account
Sichuan Changhong Jijia Jinggong Co., Ltd. 118,597,275.01 53,421,683.82
payable
Account
Sichuan Changhong Minsheng Logistic Co., Ltd. 33,267,989.86 38,816,514.90
payable
Account
Sichuan Changhong Packing & Printing Co., Ltd. 16,873,485.63 10,966,607.44
payable
224
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
Item Related parties Ending balance Opening balance
Account
Sichuan Changhong Devices Technology Co., Ltd. 19,187,345.59 20.08
payable
Account
Mianyang Hongrun Electronic Co., Ltd. 1,844,104.93 958,576.70
payable
Account Sichuan Changhong Precision Electronic
3,134,554.35 1,422,908.29
payable Technology Co., Ltd.
Account 081 Electronic Group Sichuan Liyuan Electronic
485,405.85 140,059.51
payable Co., Ltd.
Account Sichuan Changhong New Energy Technology Co.,
179,142.81 114,219.50
payable Ltd.
Account
Sichuan Changhong Lighting Technology Co., Ltd. 23,858.00 30,062.00
payable
Account
Sichuan Changhong Power Co., Ltd. 38,594.78 36,423.46
payable
Account
Sichuan Hongyu Metal Manufacture Co., Ltd. 443,491.64 132,682.43
payable
Account Sichuan Kuaiyidian Appliance Service Chain Co.,
699,618.82 11,017.79
payable Ltd.
Account
Sichuan Changhong Electronic Devices Co., Ltd. - 8,928,899.08
payable
Account
Sichuan Hongwei Technology Co., Ltd. 207,616.50 177,450.00
payable
Account
Sichuan Changhong International Hotel Co., Ltd. 9,648.00 7,576.00
payable
Account Sichuan Changhong Gerun Renewable Resources
10,503.63 10,503.63
payable Co., Ltd.
Account
Chengdu Changhong Minsheng Logistic Co., Ltd. - 4,609,168.32
payable
Account
Sichuan Changhong Xinrui Technology Co., Ltd. 2,433,568.92 13,510,239.53
payable
Account Sichuan Changhong International Travel Agency
11,543.00 56,786.66
payable Ltd,
Account
Mianyang Hongfa Technology Co., Ltd. 113,000.00 113,000.00
payable
Account
Guangdong Changhong Electrics Co., Ltd. 3,044,517.95 381,686.49
payable
Account Guangdong Changhong Ridian Technology Co.,
492,287.22 512,483.48
payable Ltd.
Account
Zhongshan Guanghong Mold Technology Co., Ltd. - 111,259.76
payable
Account
Sichuan Changxin Refrigeration Parts Co., Ltd. 16,355,543.02 10,478,359.11
payable
Account
Mianyang Highly Electric Co., Ltd. 12,584,630.43 15,136,189.07
payable
Account
Sichuan Changhe Technology Co., Ltd. 426,429.27 965,891.13
payable
Account
received in Sichuan Changhong Electric Co., Ltd. 234.16 234.16
advance
Account
received in Mianyang Lejiayi Trading Chain Co., Ltd. - 123,540.79
advance
Account Lejiayi Chain Management Co., Ltd. 3,594.67 761.29
received in
225
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
Item Related parties Ending balance Opening balance
advance
Account
received in Sichuan Changhong Mold Technology Co., Ltd. 1.99 -
advance
Account
received in Chongqing Hongshenghuo Trading Co., Ltd. - 2,408.00
advance
Account
received in Mianyang Lejiayi Trading Chain Co., Ltd. 882.41
advance
Account
received in Sichuan CCO Display Technology Co., Ltd. 74,587.00 74,587.00
advance
Account
081 Electronic Group Sichuan Liyuan Electronic
received in 25.55 28,677.70
Co., Ltd.
advance
Account
Sichuan Changhong Gerun Renewable Resources
received in 49,845.58 240,205.07
Co., Ltd.
advance
Account
Guangyuan Changhong Molding Technology Co.,
received in - 35,000.00
Ltd.
advance
Account
received in Guangyuan Hongcheng Industrial Co., Ltd. - 320.00
advance
Account
received in CHANGHONG ELECTRIC (AUSTRALIA) 7,153.58 5,542.58
advance
Account
Sichuan Changhong New Energy Technology Co.,
received in 0.01 0.01
Ltd.
advance
Account
received in Hefei Meiling Solar Energy Technology Co., 130,400.00
advance
Account
Fuyang Weiao Meiling Appliance Marketing Co.,
received in - 331.99
Ltd.
advance
Other account Sichuan Changhong Electronics Holding Group
4,124.00 -
payable Co., Ltd.
Other account
Sichuan Changhong Electric Co., Ltd. 5,666,571.58 1,826,155.03
payable
Other account 081 Electronic Group Sichuan Liyuan Electronic
3,819.59 -
payable Co., Ltd.
Other account
Sichuan Changhong Minsheng Logistic Co., Ltd. 600,801.87 586,504.95
payable
Other account
Changhong (H.K.) Trading Co., Ltd. 81,450.02 -
payable
Other account
Sichuan Changhong Mold Technology Co., Ltd. 1,486,672.97 1,431,191.81
payable
Other account
Sichuan Changhong Jijia Jinggong Co., Ltd. 361,466.64 361,466.64
payable
Other account Sichuan Changhong Gerun Renewable Resources
10,000.00 10,000.00
payable Co., Ltd.
Other account Sichuan Changhong Precision Electronic
22,430.00
payable Technology Co., Ltd.
226
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
Item Related parties Ending balance Opening balance
Other account Sichuan Kuaiyidian Appliance Service Chain Co.,
12,881,261.25 -
payable Ltd.
Other account
Sichuan Changhong Xinrui Technology Co., Ltd. - 200,000.00
payable
Other account
Huayi Compressor Co., Ltd. 1,190,779.00 650,000.00
payable
Other account
Sichuan Changhong Packing & Printing Co., Ltd. 56,068.00 50,000.00
payable
Other account Sichuan Changhong International Travel Agency
111,546.50 -
payable Ltd,
Other account
Mianyang Hongrun Electronic Co., Ltd. 78.00 -
payable
Other account
Sichuan Changhe Technology Co., Ltd. - 50,000.00
payable
Other account
Mianyang Highly Electric Co., Ltd. 527,934.86 527,934.86
payable
Other account
Sichuan Changxin Refrigeration Parts Co., Ltd. 49.20 50,000.00
payable
Dividend
Sichuan Changhong Electric Co., Ltd. 9,889,699.80 -
payable
Total 536,470,283.78 371,783,768.71
(IV) Commitments from related parties: Nil
12. share-based payment: nil
13. contingency
1.Pending action or possible liabilities formed from arbitration: Nil
2. Contingency from external guarantee: Nil
3. other contingency:
On 4 June 2013, the Notice of Stop the Promotion Policy of Energy-Saving Appliances Subsidy [CJ
(2013) No. 210] was issued jointly by Ministry of Finance, NDRC and MIT. The consumers, no longer be
favor in the central financial subsidies while purchasing five types energy efficient appliances as AC, FPTV,
refrigerator, washing machine and water heater since 1 June 2013. Enterprise with efficient appliances
promoted should collected and sorting data of the product manufacture and sales as soon as possible, entered
relevant information to the ―People-benefit project system of energy-saving products‖ on time; at the same
time, prepared annual liquidation report of the subsidies, reported to local (place of registration) finance
authority, development & reform commission and MIT for approval, reported level by level after approval to
Ministry of Finance, NDRC and MIT before 30 June 2013. Ministry of Finance, NDRC and MIT will carry
out subsidy liquidation according to the reported data and relevant approval results.
Relevant data has been submit to Ministry of Finance, NDRC and MIT. The ultimate liquidation results
for relevant energy-saving subsidy of AC and refrigerator are not received by the Company up to 30 June
2015. and the results may impact the energy-saving subsidy of the Company, which are required or not yet
227
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
required.
14. Commitments
15. Events occurring after the balance sheet date
1. important non-adjustment items: nil
2. profit distribution
In line with the Notice of Profit Distribution Implementation for Year of 2014, the Company carried out
0.6 Yuan (tax included) in cash for every 10 shares held by all shareholders, based on the total share capital
763,739,205 shares in the reporting period, and cash 45,824,352.30 Yuan (tax included)are distributed in
total.
3. major sa les re turn : n il
4. Other than the above mentioned events, the Company have no other events occurred after balance
sheet date.
16. Other significant matters
1. correc tio n of pre vio us perio s and in fluence: n il
2. deb t re struc turing : n il
3.assets rep lac e men t: n il
4.pension p lan : n il
5.discontinu ing op era tion: n il
6. bran ch info rma tion
In 10 thousand Yuan
Item Ice cuber AC Marketing Other Salesin branch Total
Operation income 418,011.35 263,735.41 195,597.93 12,202.99 246,855.95 642,691.73
Including:: Income fromtradingoutside 182,869.15 258,588.07 195,597.93 5,636.57 - 642,691.73
Income fromtradinginbranch 235,142.20 5,147.33 - 6,566.42 246,855.95 -
Operation expenses 410,779.98 258,224.78 194,714.60 11,822.75 246,876.99 628,665.12
Operationprofit 7,231.37 5,510.63 883.33 380.24 - 14,026.61
Total assets 831,602.66 298,330.27 83,424.08 18,588.89 193,926.56 1,038,019.33
Totalliability 461,743.09 223,226.07 106,175.85 8,760.91 108,270.99 691,634.93
Suppllementaryinformation -
Depreciation and amortizataion expenses 6,642.52 1,733.45 8.69 215.74 3.67 8,596.73
228
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
Item Ice cuber AC Marketing Other Salesin branch Total
Capital expenditure 6,018.10 4,043.39 7.93 269.95 30.57 10,308.80
Non-cash expenses except for depreciation
32,395.69 27,798.33 18,489.24 1,394.44 884.86 79,192.83
and amortizataion
7. other major transactions and events shows impact on investor’s decision-making: nil
17. Notes to main items of financial statement of parent company
1. Account receivable
(1) Risk structure of account receivable
Ending amount
Category Book balance Bad debt provision
Ratio Ratio Book value
Amount Amount
(%) (%)
Account receivable with single
significant amount and
- - - - -
withdrawal single item bad
debt provision
Account receivable withdrawal
bad debt provision by - - - - -
combination
Combination 1 423,394,985.78 36.94 25,337,881.94 5.98 398,057,103.84
Combination 2 722,669,475.89 63.06 - - 722,669,475.89
Combination Subtotal 1,146,064,461.67 100.00 25,337,881.94 2.21 1,120,726,579.73
Account receivable with single
minor amount but withdrawal - - - - -
single item bad debt provision
Total 1,146,064,461.67 100.00 25,337,881.94 2.21 1,120,726,579.73
(Continued)
Opening amount
Category Book balance Bad debt provision
Ratio Ratio Book value
Amount Amount
(%) (%)
Account receivable with single
significant amount and
- - - - -
withdrawal single item bad
debt provision
Account receivable withdrawal
bad debt provision by - - - - -
combination
Combination 1 258,239,547.96 31.25 16,578,700.15 6.42 241,660,847.81
Combination 2 568,186,736.90 68.75 568,186,736.90
Combination Subtotal 826,426,284.86 100.00 16,578,700.15 2.01 809,847,584.71
Account receivable with single
minor amount but withdrawal -
single item bad debt provision
229
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
Opening amount
Category Book balance Bad debt provision
Ratio Ratio Book value
Amount Amount
(%) (%)
Total 826,426,284.86 100.00 16,578,700.15 2.01 809,847,584.71
1) Account receivable with single significant amount and withdrawal bad debt provision
single:
2) Account receivable with Withdrawal of bad debt provision by aging account in
combination 1
Ending amount Opening amount
Book Age Book balance Bad debt Book balance Bad debt
Amount Ratio provision Amount Ratio provision
Within 1 year 413,605,509.07 5% 20,680,275.45 248,400,750.99 5% 12,420,037.55
1-2 years 3,936,413.61 15% 590,462.04 6,522,478.61 15% 978,371.79
2-3 years 2,586,755.54 35% 905,364.44 - 35% -
3-4 years 232,283.45 55% 127,755.90 232,283.45 55% 127,755.90
4-5 years - 85% - 210,000.00 85% 178,500.00
Over 5 years 3,034,024.11 100% 3,034,024.11 2,874,034.91 100% 2,874,034.91
Total 423,394,985.78 25,337,881.94 258,239,547.96 16,578,700.15
3) Account receivable without bad debt provision withdrawal in combination 2
Combination Book balance
Connected amount between related parties 664,250,944.50
Account receivable with L/C 58,418,531.39
Total 722,669,475.89
4) No account receivable with single minor amount but withdrawal single item bad debt
provision
(2) Reversal of bad debt provision in the Year: Nil
(3) Account receivable actually written-off in the Year: Nil
(4) Arrears of the shareholders holding more than 5% (including 5%) shares with voting
rights of the Company: Nil
(5) The top five account receivable at year-end has RMB 367,381,649.46 in total, a
32.06% in total account receivable.
(6) Account receivable from related parties
Related Proportion in total account
Unit Amount
relationship receivable
CHANGHONG(HK)TRADINGLIMITED Under the 17,861,957.69 1.56%
230
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
Related Proportion in total account
Unit Amount
relationship receivable
same control
Chonghong Ruba Trading Company(Private) Limited Subsidiary 6,216,345.13 0.54%
Under the
Changhong Europe Electric s.r.o 699,340.82 0.06%
same control
Beijing Meiling Appliance Marketing Co., Ltd. Subsidiary 60,838,541.23 5.31%
Nanjing Meiling Appliance Marketing Co., Ltd. Subsidiary 53,091,201.23 4.63%
Shenyang Meiling Appliance Marketing Co., Ltd. Subsidiary 43,469,809.41 3.79%
Taiyuan Meiling Appliance Marketing Co., Ltd. Subsidiary 39,320,707.36 3.43%
Guangzhou Meiling Appliance Marketing Co., Ltd. Subsidiary 36,688,426.71 3.20%
Shanghai Meiling Appliance Marketing Co., Ltd. Subsidiary 35,682,023.97 3.11%
Tianjin Meiling Appliance Marketing Co., Ltd. Subsidiary 30,132,738.31 2.63%
Chongqing Meiling Appliance Marketing Co., Ltd. Subsidiary 28,439,049.99 2.48%
Hangzhou Meiling Appliance Marketing Co., Ltd. Subsidiary 28,113,948.91 2.45%
Nanchang Meiling Appliance Marketing Co., Ltd. Subsidiary 27,736,393.90 2.42%
Zhengzhou Meiling Appliance Marketing Co., Ltd. Subsidiary 23,604,756.26 2.06%
Wuhan Meiling Appliance Marketing Co., Ltd. Subsidiary 21,588,571.29 1.88%
Xi’an Meiling Appliance Marketing Co., Ltd. Subsidiary 19,675,222.12 1.72%
Changchun Meiling Appliance Marketing Co., Ltd. Subsidiary 18,859,578.69 1.65%
Chengdu Meiling Appliance Marketing Co., Ltd. Subsidiary 18,403,878.42 1.61%
Fuzhou Meiling Appliance Marketing Co., Ltd. Subsidiary 16,865,714.04 1.47%
Guangxi Meiling Home Appliance Co., Ltd. Subsidiary 16,218,910.02 1.42%
Guiyang Meiling Appliance Marketing Co., Ltd. Subsidiary 15,591,837.76 1.36%
Nantong Meiling Appliance Marketing Co., Ltd. Subsidiary 14,283,750.04 1.25%
Jinan Meiling Appliance Marketing Co., Ltd. Subsidiary 14,150,290.97 1.23%
Harbin Meiling Appliance Marketing Co., Ltd. Subsidiary 13,451,788.87 1.17%
Jingzhou Meiling Appliance Marketing Co., Ltd. Subsidiary 11,930,284.32 1.04%
Kunming Meiling Appliance Marketing Co., Ltd. Subsidiary 10,019,018.55 0.87%
Bengbu Meiling Appliance Marketing Co., Ltd. Subsidiary 9,800,419.73 0.86%
Zhongke Meiling Cryogenic Technology Co., Ltd. Subsidiary 9,335,659.74 0.81%
Hohhot Meiling Appliance Marketing Co., Ltd. Subsidiary 8,649,541.15 0.75%
Urumchi Meiling Appliance Marketing Co., Ltd. Subsidiary 7,176,665.43 0.63%
Lanzhou Meiling Appliance Marketing Co., Ltd. Subsidiary 6,352,938.71 0.55%
Hengyang Meiling Appliance Marketing Co., Ltd. Subsidiary 1,633.73 0.00%
Total 664,250,944.50 57.96%
(7) Account receivable de-recognized: Nil
2. Other account receivable
(1) Risk structure of other account receivable
231
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
Ending amount
Category Book balance Bad debt provision
Book value
Amount Ratio (%) Amount Ratio (%)
Other account receivable with
single significant amount and
- - - - -
withdrawal single item bad debt
provision
Other account receivable
withdrawal bad debt provision by - - - - -
combination
Combination 1 3,970,331.08 8.94 1,248,160.31 31.44 2,722,170.77
Combination 2 40,433,118.76 91.06 - - 40,433,118.76
Combination Subtotal 44,403,449.84 100.00 1,248,160.31 2.81 43,155,289.53
Other account receivable with
single minor amount but
- - - - -
withdrawal single item bad debt
provision
Total 44,403,449.84 100.00 1,248,160.31 2.81 43,155,289.53
(Continued)
Opening amount
Category Book balance Bad debt provision
Book value
Amount Ratio (%) Amount Ratio (%)
Other account receivable with
single significant amount and
- - - - -
withdrawal single item bad debt
provision
Other account receivable
withdrawal bad debt provision by - - - - -
combination
Combination 1 4,821,810.59 8.52 1,702,368.33 35.30 3,119,442.26
Combination 2 51,791,307.54 91.48 51,791,307.54
Combination Subtotal 56,613,118.13 100.00 1,702,368.33 3.01 54,910,749.80
Other account receivable with
single minor amount but
2,000.00 - 2,000.00 100.00 -
withdrawal single item bad debt
provision
Total 56,615,118.13 100.00 1,704,368.33 3.01 54,910,749.80
1) Other account receivable with single significant amount and no withdrawal bad debt
provision single
2) Other account receivable with withdrawal bad debt provision by aging account for
combination 1
Ending amount Opening amount
Item Accrual Bad debt Accrual Bad debt
Amount Amount
proportion provision proportion provision
Within 1 year 579,688.58 5% 28,984.43 625,000.00 5% 31,250.00
232
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
Ending amount Opening amount
Item Accrual Bad debt Accrual Bad debt
Amount Amount
proportion provision proportion provision
1-2 years 30,000.00 15% 4,500.00 30,000.00 15% 4,500.00
2-3 years 3,178,962.50 35% 1,112,636.88 3,178,962.50 35% 1,112,636.88
3-4 years 176,980.00 55% 97,339.00 964,148.09 55% 530,281.45
4-5 years - 85% - - 85% -
Over 5 years 4,700.00 100% 4,700.00 23,700.00 100% 23,700.00
Total 3,970,331.08 1,248,160.31 4,821,810.59 1,702,368.33
3) Other receivable without bad debt provision withdrawal in combination 2
Combination Book balance
Connected amount between related parties 31,666,839.60
Loans of employee’s pretty cash 1,696,740.92
Export rebates 7,069,538.24
Total 40,433,118.76
4) Other account receivable with single minor amount but withdrawal single item bad debt
provision at period-end: Nil
(2)Other account receivable of previous years that have been verified recovered in this
year: Nil
(3) Switch-back of bad debt provision for other receivable in this year: Nil
(4) Other account receivable charge off in this year: Nil
(5)Areas from shareholders’ unit with over 5 percent (5 percent included) voting rights
held at year-end of the other receivable: Nil
(6) Top 5 other account receivable has RMB 39,781,396.95 in total, a 89.59% in total
account receivable at year-end
(7) Other receivables classify by nature
Nature Ending book balance Opening book balance
Related parties 31,666,839.60 47,316,187.56
Loans of employee’s pretty cash 1,696,740.92 4,475,119.98
Margin 3,237,252.77 3,208,962.50
Advance money paid temporary 4,700.00 648,700.00
Export rebates 7,069,538.24 -
Salary margin for migrant worker 176,980.00 964,148.09
Other 551,398.31 2,000.00
Total 44,403,449.84 56,615,118.13
(8) Other account receivable from related parties
233
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
Item Ending amount Opening amount
Hefei Meiling Appliance Marketing Co., Ltd. 31,385,488.28 32,453,011.35
Guangxi Huidian Home Appliance Co., Ltd. - 1,182,810.00
Zhengzhou Meiling Appliance Marketing Co., Ltd. - 80,656.25
Jingzhou Meiling Appliance Marketing Co., Ltd. - 359,614.70
Hefei Meiling White Appliance Marketing Co., Ltd. - 4,071,235.67
Bengbu Meiling Appliance Marketing Co., Ltd. - 1,650,648.30
Mianyang Meiling Appliance Marketing Co., Ltd. - 16,223.76
Changchun Meiling Appliance Marketing Co., Ltd. - 432,708.65
Chongqing Meiling Appliance Marketing Co., Ltd. - 1,930,385.80
Changsha Meiling Appliance Marketing Co., Ltd. - 276,765.56
Taiyuan Meiling Appliance Marketing Co., Ltd. - 954,713.20
Shijiazhuang Meiling Appliance Marketing Co., Ltd. - 2,221,178.31
Lanzhou Meiling Appliance Marketing Co., Ltd. - 334,510.04
Neijiang Meiling Appliance Marketing Co., Ltd. - 771,875.02
Mianyang Meiling Refrigeration Co., Ltd. - 513,001.72
Hefei Meiling Group Holding Co., Ltd. 125,351.32 66,849.23
Sichuan Ejar Network Technology Co., Ltd. 156,000.00 -
Total 31,666,839.60 47,316,187.56
(9) Account receivable denominated in foreign currency: Nil
(10) Other receivable de-recognized: Nil
234
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
3. Long-term equity investments
(1)Classification of long-term equity investments
Ending balance Opening balance
Item
Book balance Impairment loss Book value Book balance Impairment loss Book value
Investment in subsidiaries
Hefei Meiling Packing Products Co., Ltd. 12,961,230.52 - 12,961,230.52 12,961,230.52 - 12,961,230.52
Zhongke Meiling Cryogenic Technology
42,000,000.00 - 42,000,000.00 42,000,000.00 - 42,000,000.00
Co., Ltd.
Mianyang Meiling Refrigeration Co., Ltd. 95,000,000.00 - 95,000,000.00 95,000,000.00 - 95,000,000.00
Hefei Meiling Appliance Marketing Co.,
54,900,000.00 - 54,900,000.00 54,900,000.00 - 54,900,000.00
Ltd.
Zhongshan Changhong Appliance Co.,
112,256,419.37 - 112,256,419.37 112,256,419.37 - 112,256,419.37
Ltd
Sichuan Changhong Air Conditioner Co.,
305,600,437.79 - 305,600,437.79 305,600,437.79 - 305,600,437.79
Ltd.
Hefei Meiling Group Holding Co., Ltd. 113,630,000.00 - 113,630,000.00 113,630,000.00 - 113,630,000.00
Jiangxi Meiling Appliance Co., Ld. 79,000,000.00 - 79,000,000.00 79,000,000.00 - 79,000,000.00
Mianyang Meiling Software Technology
4,950,000.00 - 4,950,000.00 4,950,000.00 - 4,950,000.00
Co., Ltd.
Investment in associates
Hefei Xingmei Assets Management Co.,
12,910,254.56 - 12,910,254.56 13,071,784.93 - 13,071,784.93
Ltd.
Sichuan Ejar Network Technology Co.,
8,583,844.68 8,583,844.68 - -
Ltd.
Total 841,792,186.92 - 841,792,186.92 833,369,872.61 - 833,369,872.61
(2)Investment in subsidiaries
Increase during the Decrease during the Provision forimpairment Ending balance of
Invested unit Opening balance Ending balance
period period losses impairment loss
235
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
Increase during the Decrease during the Provision forimpairment Ending balance of
Invested unit Opening balance Ending balance
period period losses impairment loss
Hefei Meiling Packing Products Co., Ltd. 12,961,230.52 - - 12,961,230.52 - -
Zhongke Meiling Cryogenic Technology
42,000,000.00 - - 42,000,000.00 - -
Co., Ltd.
Mianyang Meiling Refrigeration Co., Ltd. 95,000,000.00 - - 95,000,000.00 - -
Hefei Meiling Appliance Marketing Co.,
54,900,000.00 - - 54,900,000.00 - -
Ltd.
Zhongshan Changhong Appliance Co.,
112,256,419.37 - 112,256,419.37 - -
Ltd
Sichuan Changhong Air Conditioner Co.,
305,600,437.79 - - 305,600,437.79 - -
Ltd.
Hefei Meiling Group Holding Co., Ltd. 113,630,000.00 - - 113,630,000.00 - -
Jiangxi Meiling Appliance Co., Ld. 79,000,000.00 - - 79,000,000.00 - -
Mianyang Meiling Software Technology
4,950,000.00 - 4,950,000.00 - -
Co., Ltd.
Total 820,298,087.68 - 820,298,087.68 - -
(3)Investment in associates
Changes inthe Period
Negativ Adjustment Ending
Invested unit Opening balance Investment income Other Cash dividend or Provision for Ending balance balance of
Additional e for other
recognizedunder equity profitannounced to impairment Other impairment
Investment Investm comprehensi
equity change issued loss
ent ve income
Hefei Xingmei Assets
13,071,784.93 -161,530.37 12,910,254.56 -
ManagementCo., Ltd.
Sichuan Ejar Network Technology
- 15,000,000.00 -6,416,155.32 8,583,844.68
Co.,Ltd.
236
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
3. Operation income and operation cost
Current Period A year earlier
Item
Income Cost Income Cost
Main business 3,273,590,576.99 2,749,342,602.87 3,059,634,817.32 2,513,663,820.31
Other business 450,054,174.95 435,680,329.62 531,934,442.89 521,788,934.54
Total 3,723,644,751.94 3,185,022,932.49 3,591,569,260.21 3,035,452,754.85
(1) Classified according to product-main operation
Current Period A year earlier
Product
Operation income Operation cost Operation income Operation cost
Refrigerator and
3,162,550,759.77 2,654,440,336.36 2,987,030,170.25 2,454,217,576.77
freezer
Washing
111,033,625.17 94,896,268.57 72,604,647.07 59,446,243.54
machine
Other 6,192.05 5,997.94 - -
Total 3,273,590,576.99 2,749,342,602.87 3,059,634,817.32 2,513,663,820.31
(2) Classified according to region-main operation
Current Period A year earlier
Regions
Operation income Operation cost Operation income Operation cost
Domestic income 2,501,342,037.25 2,056,276,249.58 2,407,004,655.36 1,923,094,296.29
Export income 772,248,539.74 693,066,353.29 652,630,161.96 590,569,524.02
Total 3,273,590,576.99 2,749,342,602.87 3,059,634,817.32 2,513,663,820.31
Top five clients of the Company owe income in sales of RMB 888,434,100.66 yuan, a 23.86% in
total investment income.
4. Investment income
Item Current Period A year earlier
Long-term equity investment income by equity method -6,577,685.69 -95,120.70
Investment income during holding the financial assets available for sale
Investment income from disposal of long-term equity investment
Investment income from disposal of financial assets, which is measured
-
by fair value and with its variation reckoned into current gains/losses
Other 517,808.22
Total -6,059,877.47 -95,120.70
(1) Long-term equity investment income by equity method
Item Current Period A year earlier
Hefei Xingmei Assets Management Co., Ltd. -161,530.37 -95,120.70
Sichuan Ejar Network Technology Co., Ltd. -6,416,155.32 -
18. Approval of financial statement
The financial statement has already been approved from the board of directors of the Company for
reporting dated 11 August 2015.
237
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
Supplementary information for financial statement
1. Non-operational gains and losses for this year
(1) Non-recurring gains and losses regulated by Explanation Announcement of
Information Disclosure on Stock Issuance Enterprise No.1—Non-recurring gains/losses (2008)
from CSRC:
Current
Item Note
Period
Gains and losses from disposal of non-current assets -5,682,027.31
Tax refund or mitigate due to examination-and-approval beyond power or without official
approval document or accident
Government subsidy recorded in current gains and losses 12,344,884.49
Capital occupancy expense, collected from non-financial enterprises and recorded in current
gains and losses
Income from the exceeding part between investment cost of the Company paid for obtaining
subsidiaries, associates and joint-ventures and recognizable net assets fair value attributable to
the Company when acquiring the investment
Gains and losses from exchange of non-monetary assets
Gains and losses from assets under trusted investment or management 517,808.22
Various provision for impairment of assets withdrew due to act of God, such as natural
-
disaster
Gains and losses from debt restructuring -
Enterprise reorganization expense -
Gains and losses of the part arising from transaction in which price is not fair and exceeding
-
fair value
Current net gains and losses occurred from period-begin to combination day by subsidiaries
-
resulting from business combination under common control
Gains and losses arising from contingent proceedings irrelevant to normal operation of the
-
Company
Except for effective hedge business relevant to normal operation of the Company, gains and
losses arising from fair value change of tradable financial assets and tradable financial
4,133,602.00
liabilities, and investment income from disposal of tradable financial assets, tradable financial
liabilities and financial assets available for sale
Switch-back of provision of impairment of account receivable which are treated with separate
depreciation test
Gains and losses obtained from external trusted loans
Gains and losses arising from change of fair value of investment real estate whose follow-up
measurement are conducted according to fair value pattern
Affect on current gains and losses after an one-time adjustment according to requirements of
laws and regulations regarding to taxation and accounting
Trust fee obtained from trust operation
Other non-operating income and expenditure except for the aforementioned ones -1,122,350.47
Other gains and losses items complying with definition for non-current gains and losses -
Subtotal 10,191,916.93
Affect on income tax 503,618.35
Affect on minority equity(after taxation) -111,894.00
Total 9,800,192.58
238
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
2.Return on equity and earnings per share
In accordance with requirement of the No. 9 Rule of Information Disclosure Compiling of
Public Listed Companies: Calculation and Disclosure of Return on Equity and Earnings per
Share (revised in 2010), the weighted average return on equity, basic earnings per share and
diluted earnings per share of the Company in first half of 2015 are as follow:
Weighted average Earnings per share/EPS
Profit during the report period
return on equity Basic EPS Diluted EPS
Net profit attributable to shareholders of parent
company 4.52% 0.2074 0.2074
Net profit attributable to shareholders of parent
company after deduction of non-recurring 4.24% 0.1945 0.1945
gains and losses
3. Accounting difference under the accounting rules in and out of China : Nil
239
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
Section X. Documents Available for Reference
I. Text of semi-annual report with the signature of the Chairman;
II. Accounting statement carrying the signatures and seals of the Chairman, vice president
and financial administrator as well as the person in charge of accounting organ(chief accountants);
III. Originals documents of the Company and manuscripts of public notices that disclosed in
the newspapers designated by CSRC in the report period;
The aforesaid documents are all available at headquarter of the Company. The Company
would provide them timely when CSRC and Shenzhen Stock Exchange require or the
shareholders need consultation according to the regulations and Articles of Association.
Chairman: Liu Tibin
Hefei Meiling Co., Ltd.
12 August 2015
240
