CHANGHONG MEILING CO., LTD Summary of Semi-Annual Report 2019
Stock Code: 000521, 200521 Notice No.: 2019-051
Short Form of the Stock: Changhong Meiling, Hongmeiling B
CHANGHONG MEILING CO., LTD.
Summary of Semi-Annual Report 2019
I. Important Notice
(i) The summary of semi-annual report is excerpted from the full text of the semi-annual report. For the
details, investors should carefully read the full text of the semi-annual report published on Juchao
Information website (www.cninfo.com.cn) and Shenzhen Stock Exchange Website etc., appointed by
CSRC.
(ii) The Company did not have directors, supervisors and senior executives of the Company could not
guarantee the reality, accuracy and completion of the whole contents or have objections.
(iii) All the directors attended the board meeting on deliberating the Report on site and by communication.
(iv) Modified audit opinions notes
□ Applicable √ Not applicable
(v) Profit distribution pre-plan or capitalizing of common reserves pre-plan deliberated by the Board in the
semi-annual period
□Applicable √Not applicable
The Company has no plans of cash distribution, bonus shares and capitalizing of common reserves either.
(vi) Profit distribution for preferred shares approved by the Board
□Applicable √Not applicable
II. Company information
(i) Profile
Changhong Meiling,
Short form for share Code for share 000521, 200521
Hongmeiling B
Listing stock exchange Shenzhen Stock Exchange
Short form of the Stock before
N/A
changed (if applicable)
Contact person and ways Secretary of the Board Representative of Securities affairs
Name Li Xia Zhu Wenjie
Office add. No. 2163, Lianhua Road, Economic and No. 2163, Lianhua Road, Economic and
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CHANGHONG MEILING CO., LTD Summary of Semi-Annual Report 2019
Technology Development Zone, Hefei Technology Development Zone, Hefei
Tel. 0551-62219021 0551-62219021
E-mail 0551-62219021 0551-62219021
lixia@meiling.com wenjie.zhu@meiling.com
(ii) Main financial data and financial index
Whether it has retroactive adjustment or re-statement on previous accounting data or not
□Yes √No
Current period Same period last year Changes +/-
Operating income (RMB) 9,133,162,680.94 9,271,509,569.67 -1.49%
Net profit attributable to shareholders of the
54,334,022.57 50,684,231.73 7.20%
listed company (RMB)
Net profit attributable to shareholders of the
listed company after deducting non-recurring 4,475,396.85 -6,600,101.83 167.81%
gains and losses (RMB)
Net cash flow arising from operating
373,484,000.19 160,489,361.06 132.72%
activities (RMB)
Basic earnings per share (RMB/Share) 0.0520 0.0485 7.22%
Diluted earnings per share (RMB/Share) 0.0520 0.0485 7.22%
Weighted average ROE 1.08% 1.00% 0.08 percentage points up
End of current period End of last year Changes +/-
Total assets (RMB) 15,734,260,021.29 15,561,810,184.54 1.11%
Net assets attributable to shareholder of listed
4,999,219,710.19 5,015,730,486.57 -0.33%
company (RMB)
(iii) Amount of shareholders of the Company and particulars about shares holding
In share
Total preference shareholders
Total common shareholders in reporting with voting rights recovered at
66,701 0
period-end end of reporting period (if
applicable)
Top 10 shares holding
Amount of Number of share
Proportion
Nature of un-restricted pledged/frozen
Full name of Shareholders of shares Shares held
shareholder common shares State of
held Amount
held share
State-owned legal
Sichuan Changhong Electric Co., Ltd. 23.79% 248,457,724 69,877,638 -- --
person
Hefei Industry Investment Holding (Group) State-owned legal
4.58% 47,823,401 0 -- --
Co., Ltd. person
CHANGHONG (HK) TRADING LIMITED Foreign legal
2.59% 27,077,797 0 -- --
(note 1) person
Foreign natural
CAO SHENGCHUN 1.36% 14,240,979 0 -- --
person
Caitong Fund- Ningbo Bank-Haitong Xingtai Domestic non 1.03% 10,733,452 0 -- --
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CHANGHONG MEILING CO., LTD Summary of Semi-Annual Report 2019
(Anhui) Emerging Industry Investment Fund state-owned
(Limited Partnership) corporate
China Construction Bank - Huaxia China
Domestic non
Securities Sichuan State-owned enterprise
state-owned 0.69% 7,213,000 0 -- --
reform exchange traded index securities
corporate
investment fund
Foreign legal
Phillip Securities (Hong Kong) Co., Ltd. 0.60% 6,296,913 0 -- --
person
Domestic general
China Securities Finance Corporation Limited 0.42% 4,362,500 0 -- --
legal person
Domestic nature
Ma Guobin 0.40% 4,164,081 0 -- --
person
Domestic nature
Zheng Huiru 0.38% 3,946,500 0 -- --
person
Among the above shareholders, CHANGHONG (HK) TRADING LIMITED (hereinafter
referred to as Hong Kong Changhong) is the wholly-owned subsidiary of Sichuan
Changhong Electric Co., Ltd. (hereinafter referred to as Sichuan Changhong); except the
shares of the Company directly held by Hong Kong Changhong, 6,296,913 shares of
B-stock are also held through Phillip Securities (Hong Kong) Co., Ltd., the foregoing
shareholders constitute persons of uniform action. There existed no associated
relationship or belong to the concerted actors as specified in the Measures for the
Explanation on associated relationship among
Administration of Information Disclosure of Shareholder Equity Changes of Listed
the aforesaid shareholders Companies among Sichuan Changhong, Hong Kong Changhong and other top 7
shareholders; “Caitong Fund- Ningbo Bank-Haitong Xingtai (Anhui) Emerging Industry
Investment Fund (Limited Partnership) ” refers to the products of Caitong Fund
Management Company subscribe for privately placement of 2016; The company neither
knows whether there is any association among other shareholders, nor knows whether
other shareholders belong to the persons acting in concert that is stipulated in the
“Administrative Measures on Information Disclosure of Changes in Shareholding of
Listed Companies”.
As of 30th June 2019, among the top 10 common shareholders, Ma Guobin holds
Explanation on shareholders involving margin 4,159,681 shares of the Company through customer credit trading secured account of
business (if applicable) Founder Securities Co., Ltd., and 4,400 shares hold through common securities account,
thus 4,164,081 shares of the Company are held in total
(iv) Changes of controlling shareholder or actual controller
1. Changes of controlling shareholder in reporting period
□ Applicable √ Not applicable
No changes of controlling shareholder in reporting period.
2. Changes of actual controller in reporting period
□ Applicable √ Not applicable
No changes of actual controller in reporting period.
(v) Total preferred shareholders and top 10 shares held by preferred shareholders
□ Applicable √ Not applicable
The Company has no preferred shareholders
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CHANGHONG MEILING CO., LTD Summary of Semi-Annual Report 2019
(vi) Corporate bond
Whether the Company has a corporation bonds that issuance publicly and listed on stock exchange and without
due on the date when semi-annual report approved for released or fail to cash in full on due: No
III. Discussion and analysis of operation
(i) Operation status in the period
Investors are advice to read the full text of the report and be aware of the following risks:
In the second half of 2019, faced with the more intense competition in home appliance market and other objective
factors, the enterprise will have worse survival environment. The company will face risks such as weak
macroeconomic growth, severe industry situation, intensifying competition, rising costs, new business models and
the impact of the Internet era.
Does the Company need to comply with disclosure requirements of the special industry: No
1. Introduction
Since 2019, China’s economy has been steadily advancing, stabilizing and worrying, and the downward pressure
on the economy has risen. Especially in the context of Sino-US economic and trade frictions, Chinese economy is
facing the severe external environment, plus the inadequacy and imbalance in its own development, which makes
it more difficult to stabilize growth and prevent risks. Affected by the macro environment and its own
development cycle, coupled with the tightening of the real estate market, the iterative upgrading of consumption
structure, dull demand, rising supply chain costs and other unfavorable factors, the performance of the home
appliance industry in the first half of 2019 was not satisfactory, and the home appliance industry as a whole
entered the "cold winter". In this context, transformation and upgrading is an urgent problem for enterprises to
break the "deadlock".
In the first half of 2019, under the strategic guidance of “Meiling Dream” and “Double Three One Core”, the
Company insisted on the operating principle of “product leading, marketing transformation, efficiency promotion
and team activation”. We have achieved operating income of RMB 9.133 billion, a decrease of 1.49% on a
year-on-year basis; net profit attributable to the parent company of RMB 54.3340 million, an increase of 7.20%
on a year-on-year basis.
2. Main Business Analysis
(1) Introduction
From January to June of 2019, refrigerator and freezer business achieved revenue of approximately RMB 3.819
billion, with 3.67% up y-o-y; air-conditioning business achieved revenue of approximately RMB 3.991 billion,
with 8.84% down y-o-y.; washing machine business achieve revenue of approximately RMB 0.205 billion, with
16.50% down y-o-y.; other business of kitchen & toilet products and small home and Refrigeration accessories
appliance have revenue approximately as RMB 0.529 billion, with 17.70% up y-o-y.
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CHANGHONG MEILING CO., LTD Summary of Semi-Annual Report 2019
(2) Progress of the Company's development strategy and business plan during the reporting period
During the reporting period, in accordance with the development strategy and operating principles for first half of
2019, the Company has deployed the annual business plan, arranged the production and management, and carried
out the following activities:
Product leading
In the first half of 2019, the company featured “Meiling Fresh, Meiling Thin, Meiling Embedding” and continued
to create product-specific business cards, and further promoted the upgrades of the company's refrigerator (freezer)
products, which had good performance in the market and achieved high recognition from consumers. In particular,
the "M Fresh Life" comprehensive thin series refrigerator released in February 2019, developed a comprehensive
thin GLS integration technology (integrated with thin body, thin box and thin door) based on the upgrade of water
molecule activation and preservation technology, and achieved breakthroughs in high-end products through the
comprehensive upgrades of product technology, quality and performance. During the reporting period, the sales
volume of the company's “M Fresh Life” series refrigerators increased by more than 50% on a year-on-year basis.
Marketing transformation:
In the domestic market, we realized the transformation from product-oriented sales management to
channel-oriented and user experience services through a series of specific marketing transformation initiatives.
According to the data of CMM, the average price of refrigerator products of the company in the online market
from January to June 2019 increased by 11.7%, and the share increased by 0.9 percentage points; the average
price of refrigerators in the offline market increased by 8.2%, and the share was basically flat. At the same time,
the company's air-conditioning products seized the strategic ODM brand cooperation opportunities, ODM
business grew by 205%. In the overseas market, through the transformation from the pursuit of scale to the pursuit
of both scale and profit, the product structure has continued to improve, the proportion of air-cooled refrigerator
products has reached 18%, an increase of 6 percentage points on a year-on-year basis, and the quality of overseas
refrigerators/freezers continued to be improved. The overseas air-conditioning business has continued to improve
its operations by sorting out the risks of preventing and controlling overseas operations.
Efficiency promotion:
Focus on efficiency improvement and promote efficiency improvement. In the first half of the year, the company
carried out special work on capital pressure control, and the efficiency of capital operation was greatly improved
on a year-on-year basis through pressure control of inventory, receivables and prepayments; continued to promote
the “five -ization and two easy” work at the development end, the quantity of platform, box and model has been
controlled, and the research and development efficiency increased by more than 10% on a year-on-year basis; in
the production side, organized and carried out the work on reducing staff while improving efficiency in the
product structure optimization, process optimization, line LOB balance, automation, and one-piece flow, and so on,
and the manufacturing efficiency in the first half of the year was promoted by more than 20%.
Team activation
Expand the career path of employees through the implementation of the normalized competing mechanism for
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CHANGHONG MEILING CO., LTD Summary of Semi-Annual Report 2019
cadres to be prepared for both promotion and demotion and the establishment of exit paths for key positions,
continue to deepen the performance management mechanism, implement the overall process performance
appraisal for all employees, and realize PDCA for performance management through information integration,
reconstruct the incentive mechanism, establish a three-tier incentive system, namely, incentives for business
results, incentives for value lines, and incentives for special events, to encourage value creation for all employees.
(ii) Matters relevant to financial report
(1) Particulars about the changes in aspect of accounting policy, estimates and calculation method
compared with the financial report of last year
√ Applicable □Not applicable
More details can be seen in the “34. Changes in Important accounting policies and accounting estimates” of “IV.
Important accounting policies and accounting estimates” carry in “Section X Financial Report” in the
Semi-Annual Report 2019
(2) Particulars about retroactive restatement on major correction for accounting errors in reporting period
□ Applicable √ Not applicable
No particulars about retroactive restatement on major correction for accounting errors in reporting period.
(3) Particulars about the change of consolidation range compared with the financial report of last year
√ Applicable □Not applicable
The Company’s consolidated financial statement included 38 subsidiaries including Sichuan Changhong
Air-conditioner Co., Ltd., Zhongshan Changhong Electric Co., Ltd, Zhongke Meiling Cryogenic Technology Co.,
Ltd and so on. As compared to previous year, Nanchang Xiangyou Electronic Appliance Marketing Co.,Ltd was
liquidated out of the scope, Hefei Meiling Wulian Technology Co., Ltd. and Anhui Tuoxing Technology Co., Ltd
are established in the period.
Found more in “VII Change of Consolidate Statement” and VIII Equity in other main body carried in Section X
Financial Report of the Semi-Annual Report 2019, released on 16 August 2019.
Changhong Meiling Co., Ltd.
Chairman: Wu Dinggang
16 August 2019
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