CHANGHONG MEILING CO., LTD.
THE THIRD QUARTERLY REPORT FOR 2020
October 2020
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
Section I. Important Notes
Board of Directors and the Supervisory Committee of Changhong Meiling Co., Ltd. (hereinafter referred to as the
Company) and its directors, supervisors and senior executives hereby confirm that there are no any fictitious
statements, misleading statements, or important omissions carried in this report, and shall take all responsibilities,
individual and/or joint, for the reality, accuracy and completion of the whole contents.
Principal of the Company Mr. Wu Dinggang, Person in Charge of Accounting Works Mr. Pang Haitao and Person
in Charge of Accounting Organ (Accounting Officer) Mr. Yang Jun hereby confirm that the Financial Report of
the Third Quarterly Report is authentic, accurate and complete.
Prompt of non-standard audit opinion
□ Applicable √ Not applicable
Third quarterly report of 2020 has not been audited.
All directors of the Company are attended the Meeting for quarterly report deliberation.
2
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
Section II. Basic information of Company
I. Main accounting data and index
Whether it has retroactive adjustment or re-statement on previous accounting data or not
□Yes √No
Changes of this period-end over
End of this period End of last period
same period-end of last year
Total assets (RMB) 15,452,014,816.87 14,202,233,615.47 8.80%
Net assets attributable to
shareholders of listed company 4,825,837,316.31 5,004,947,673.36 -3.58%
(RMB)
Increase/decrease in Increase/decrease in
Year-begin to end
Current period comparison with same comparison with year-begin to
of the Period
period of last year Period-end of last year
Operating revenue (RMB) 4,560,882,229.12 16.71% 11,356,742,966.11 -12.92%
Net profit attributable to
shareholders of the listed company 86,575,054.56 227.71% -123,555,526.37 -253.01%
(RMB)
Net profit attributable to
shareholders of the listed company
16,310,383.26 82.12% -240,824,280.10 -1,893.02%
after deducting non-recurring gains
and losses (RMB)
Net cash flow arising from
109,494,010.35 163.56% -278,610,948.06 -238.46%
operating activities (RMB)
Basic earnings per share
0.0829 227.67% -0.1183 -253.04%
(RMB/Share)
Diluted earnings per share
0.0829 227.67% -0.1183 -253.04%
(RMB/Share)
Weighted average ROE 1.81% 1.28 percentage points up -2.51% 4.11 percentage points down
Items and amount of extraordinary profit (gains)/losses
√Applicable □Not applicable
In RMB
Amount from year-begin
Item Note
to end of the Period
Gains/losses from the disposal of non-current asset (including the Found more in “Income from assets
-542,955.36
write-off that accrued for impairment of assets) disposal”
3
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
Governmental subsidy reckoned into current gains/losses (not
including the subsidy enjoyed in quota or ration according to
69,462,400.24 Found more in “Other income”
national standards, which are closely relevant to enterprise’s
business)
Except for the effective hedging business relevant with normal
operations of the Company, gains/losses from change of the fair
value for holding the trading financial assets, derivative financial
assets, trading financial liabilities and derivative financial Found more in “investment income”,
62,504,367.95
liability, as well as the investment income from disposing the “Changes in fair value”,
trading financial assets, derivative financial assets, trading
financial liabilities, derivative financial liability and other
creditors’ investment
Switch-back of the receivables for separate impairment tests and Found more in “Accounts
1,809,494.78
provision for impairment of contract assets receivable”
Found more in “Non-operation
Other non-operation income and expenditure except for the
3,865,646.51 income”, “Non-operation
aforementioned items
expenditure”
Less: impact on income tax 19,492,847.45 --
Impact on minority shareholders’ equity (post-tax) 337,352.94 --
Total 117,268,753.73 --
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
The Company has no items defined as recurring profit (gain)/loss according to the lists of extraordinary profit (gain)/loss in Q&A
Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public --- Extraordinary Profit/loss, in
the period
II. Total number of shareholders at the end of this report period and top ten shareholders
1. Number of common shareholders and preference shareholders with voting rights recovered and top ten
common shareholders
In shares
Total preference shareholders
Total number of common
with voting rights recovered at
shareholders at the end of report 60,751 0
end of reporting period (if
period
applicable)
4
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
Top ten shareholders
Amount of Number of share
Proportion Amount of restricted pledged/frozen
Shareholder’s name Nature of shareholder of shares
held shares held shares State of Amo
held share unt
State-owned legal
Sichuan Changhong Electric Co., Ltd. 23.79% 248,457,724 0 -- --
person
Hefei Industrial Investment Holding (Group) State-owned legal
4.58% 47,823,401 0 -- --
Co., Ltd. person
CHANGHONG (HK) TRADING LIMITED Foreign legal person 2.59% 27,077,797 0 -- --
Ma Guobin Domestic natural person 1.82% 19,030,000 0 -- --
CAO SHENGCHUN Foreign natural person 1.41% 14,766,086 0 -- --
Caitong Fund- Ningbo Bank-Haitong Xingtai Domestic
(Anhui) Emerging Industry Investment Fund non-state-owned legal 1.03% 10,733,452 0 -- --
(Limited Partnership) person
Domestic
Shanghai Fangda Investment Management Co.,
non-state-owned legal 0.91% 9,510,800 0 -- --
Ltd.
person
Phillip Securities (Hong Kong) Limited Foreign legal person 0.60% 6,296,913 0 -- --
Domestic
China Securities Finance Corporation Limited non-state-owned legal 0.42% 4,362,500 0 -- --
person
Long Qinfang Foreign natural person 0.34% 3,558,116 0 -- --
Particular about top ten shareholders with un-restrict shares held
Amount of unrestricted Type of shares
Shareholders’ name
shares held Type Amount
Sichuan Changhong Electric Co., Ltd. 248,457,724 RMB ordinary shares 248,457,724
Hefei Industrial Investment Holding (Group) Co., Ltd. 47,823,401 RMB ordinary shares 47,823,401
Domestically listed foreign
CHANGHONG (HK) TRADING LIMITED 27,077,797 27,077,797
shares
Ma Guobin 19,030,000 RMB ordinary shares 19,030,000
Domestically listed foreign
CAO SHENGCHUN 14,766,086 14,766,086
shares
Caitong Fund- Ningbo Bank-Haitong Xingtai (Anhui)
10,733,452 RMB ordinary shares 10,733,452
Emerging Industry Investment Fund (Limited Partnership)
Shanghai Fangda Investment Management Co., Ltd. 9,510,800 RMB ordinary shares 9,510,800
Phillip Securities (Hong Kong) Limited 6,296,913 Domestically listed foreign 6,296,913
5
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
shares
China Securities Finance Corporation Limited 4,362,500 RMB ordinary shares 4,362,500
Domestically listed foreign
Long Qinfang 3,558,116 3,558,116
shares
Among the above shareholders, CHANGHONG (HK) TRADING LIMITED (hereinafter referred to
as Hong Kong Changhong) is the wholly-owned subsidiary of Sichuan Changhong Electric Co., Ltd.;
except the shares of the Company directly held by Hong Kong Changhong, 6,296,913 shares of
B-stock are also held through Phillip Securities (Hong Kong) Limited, the foregoing shareholders
constitute persons of uniform action. There existed no associated relationship or belong to the
Explanation on associated concerted actors as specified in the Measures for the Administration of Information Disclosure of
relationship or consistent Shareholder Equity Changes of Listed Companies among Sichuan Changhong, Hong Kong
actors among the aforesaid Changhong and other top 7 shareholders (Excluding Phillip Securities (Hong Kong) Limited);
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 September 2020, among the top 10 common shareholders, Ma Guobin holds 18,330,000
Explanation on top ten shares of the Company through customer credit trading secured account of Founder Securities Co.,
common shareholders Ltd., and 700,000 shares hold through common securities account, thus 19,030,000 shares of the
involving margin business Company are held in total. The shareholder-Shanghai Fangda Investment Management Co., Ltd.,
(if applicable) customer credit transaction guaranteed securities account of Guoyuan Securities Co., Ltd holds
9,510,800 shares of the Company.
Note 1: At end of the reporting period, the person acting in concert with controlling shareholder Sichuan
Changhong-- CHANGHONG (HK) TRADING LIMITED, holds B-stock of the Company as 33,374,710 shares,
among which, Changhong (Hong Kong) Trading Co., Ltd. 6,296,913 shares are held through Philip Securities
(H.K.) Co., Ltd.
Note 2: In the above table, "Particulars about shares held above 5% by common shareholders or top 10 common
shares holding" is subject to the data on stock transfer books provided by China Securities Depository and
Clearing Corporation Limited Shenzhen Branch
Whether top ten common shareholders or top ten common shareholders with un-restrict shares held have a
buy-back agreement dealing in reporting period
□ Yes √ No
The top ten common shareholders or top ten common shareholders with un-restrict shares held of the Company
have no buy-back agreement dealing in reporting period.
2. Total shareholders with preferred stock held and shares held by top ten shareholders with preferred
stock held
□ Applicable √ Not applicable
6
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
Section III. Important events
I. Particular about major changes from items of main accounting statements and financial
indexes as well as reasons
√ Applicable □Not applicable
(i) Changes of items of balance sheet and cause analysis
In RMB
Item Closing balance Opening balance Changes Reasons
This was mainly due to changes in the fair value of
Tradable financial
28,451,689.69 7,730,268.92 268.06% forward foreign exchange contracts carried out by the
assets
company during the current period.
This was mainly due to the increase in accounts receivable
from the parent company and its subsidiaries Meiling
Account receivable 2,474,469,751.84 1,387,961,981.66 78.28%
Group, Changhong Air Conditioning, and Zhongshan
Changhong in the current period.
This was mainly due to the increase in the company's
Account paid in
102,147,656.59 25,270,406.37 304.22% prepayments for purchasing raw materials during the
advance
current period.
Other current assets This was mainly due to the increase in the company's
247,545,304.92 63,604,031.96 289.20%
financial products during the current period.
This was mainly due to the company's investment in
Other non-current
542,540,000.00 45,000,000.00 1105.64% Sichuan Changhong Group Finance Co., Ltd. in the current
financial assets
period.
This was mainly due to the transfer of the company's
Investment real estate 54,357,952.53 96,343,760.13 -43.58% investment real estate into fixed assets in the current
period.
This was mainly due to the transfer of the company's
Construction in
110,309,222.32 252,494,792.31 -56.31% construction in progress into fixed assets in the current
progress
period.
This was mainly due to changes in the fair value of
Tradable financial
3,846,486.01 1,081,534.93 255.65% forward foreign exchange contracts carried out by the
liability
company during the current period.
This was mainly due to the increase in the value-added tax
Taxes Payable 106,761,494.22 68,558,391.66 55.72% payable by Changhong Air Conditioning, a subsidiary of
the company, in the current period.
Non-current liability 405,676,176.26 1,708,193.90 23648.84% This was mainly due to the reclassification of the parent
7
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
due within one year company’s long-term loans due within one year.
This was same as "non-current liabilities due within one
Long-term loans 192,640,000.00 401,280,000.00 -51.99%
year".
This was mainly due to the payment of the company's
Long-term payables 1,878,823.17 3,016,921.44 -37.72%
financial lease payments in the current period.
This was mainly due to the recognition of deferred income
Deferred income tax tax liabilities for changes in the fair value of the company's
8,611,131.03 6,256,759.14 37.63%
liability forward foreign exchange contracts during the current
period.
(ii) Changes of items of profit statement and cause analysis
In RMB
Same period of last
Item Current Period Changes Reasons
year
This was mainly due to the year-on-year increase in
R&D expenses 264,619,301.52 194,093,406.99 36.34% amortization of R&D assets and R&D trial production
during the current period.
This was mainly due to the year-on-year decrease in interest
Financial expenses -1,509,899.93 -9,844,161.99 84.66% income from the subsidiary Changhong Air Conditioning in
the current period.
Assets impairment This was mainly due to the year-on-year increase in
loss -34,714,276.42 -24,702,231.08 -40.53% impairment losses of the company's inventory assets during
the current period.
This was mainly due to the year-on-year increase in
Credit impairment
-33,008,077.62 1,082,468.11 -3149.33% impairment losses of the company's notes receivable and
loss
accounts receivable during the current period.
This was mainly due to changes in the fair value of forward
Income from fair
17,956,801.15 43,185,470.53 -58.42% foreign exchange contracts carried out by the company
value changes
during the current period.
This was mainly due to the decrease in the foreign exchange
losses of Zhongshan Changhong, a subsidiary of the
Investment income 47,154,706.68 -38,327,115.65 223.03% company, and the parent company's receipt of profit
distribution from the shareholding companies during the
current period.
This was mainly due to the year-on-year decrease in the
Income from assets
-542,955.36 -4,436,536.97 87.76% company's disposal of some asset losses in the current
disposal
period.
This was mainly due to the removal expenses of the
Non-operation
1,206,761.93 3,776,106.23 -68.04% subsidiary Changhong Air Conditioning in the same period
expenditure
last year, and there was no such matter in the current period.
8
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
This was mainly due to the decrease in the company's
Income tax expenses 1,746,437.69 36,397,055.33 -95.20%
taxable income during the current period.
Gains/losses of This was mainly due to the year-on-year decrease in losses
minority -2,151,849.18 -11,984,976.39 82.05% of some non-wholly-owned subsidiaries of the company
shareholders during the current period.
(iii) Changes of items of cash flow statement and cause analysis
In RMB
Same period of
Item Current Period Changes Reasons
last year
This was mainly due to the year-on-year increase in
Refunds of taxes 412,733,445.22 280,384,080.90 47.20% export tax rebates received by the company during the
current period.
This was mainly due to the year-on-year decrease in
Taxes paid 237,937,839.39 448,423,347.16 -46.94%
the company's VAT payment in the current period.
This was mainly due to the year-on-year decrease in
Cash received from investment
737,460,000.00 2,174,000,000.00 -66.08% the company's withdrawal of entrusted wealth
recovery
management after its expiration.
This was mainly due to the decrease in the disposal of
Net cash received from disposal of
fixed assets and intangible assets by the company
fixed assets, intangible assets and 381,041.58 19,483,459.24 -98.04%
during the current period, resulting in the year-on-year
other long-term assets
decrease in cash received .
This was mainly due to the delivery loss of the
Other cash paid concerning
- 76,709,995.61 -100.00% company's forward foreign exchange contracts in the
investment activities
previous period, but none in the current period.
This was mainly due to the year-on-year increase in
Cash received by borrowing 1,703,478,583.33 1,308,256,908.10 30.21% loans obtained by the company during the current
period.
This was mainly because the use of the company's
Other cash paid concerning
2,432,566.62 32,764,857.16 -92.58% financing margin was restricted in the previous period,
financing activities
but none in the current period.
Influence on cash and cash
This was mainly due to changes in foreign currency
equivalents due to fluctuation in -18,563,610.41 12,976,331.25 -243.06%
exchange rates during the current period.
exchange rate
II. Analysis and explanation of significant events and their influence and solutions
√ Applicable □Not applicable
(i) 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
9
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
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
29 in the form of announcement (No.: 2012-028, No.:2012-035).
1. Implementation about 2012, 2013, 2014 and 2016 performance incentive fund provision and distribution
plan
See details in "Implementation of the company's annual incentive fund" in "XV Implementation of the company's
stock incentive plan, employee stock ownership plan, or other employee incentive measures" in "Section V
Important Events" of the company's "2019 Annual Report" disclosed on 28 March 2020.
All the stocks purchased by the incentive object are locked according to their promises. Up to the end of this
reporting period, the company's stock purchased by 2012 annual performance incentive objects (non-directors,
supervisors and senior management), 2013 annual performance incentive objects (non-directors, supervisors and
senior management), the 2014 annual performance incentive objects (non-directors, supervisors and senior
management) with their granted 2012 annual performance incentive funds and own funds and 2013 & 2014
annual performance incentive funds and own funds have been fully released for trading; the stock purchased by
2016 annual performance incentive objects (non-directors, supervisors and senior management), with their granted
2016 annual performance incentive funds and own funds are expired for two years or three years, some of the
stock shall be released for trading, details of the share reduction for the above mentioned objects see below. In the
Period, the Company’s shares purchased by the current directors, supervisors and senior executives among the
performance incentive targets due to the implementation of the 2012, 2013, 2014 and 2016 annual performance
incentive plans have not reduced the shareholdings.
2. Shareholding and reducing of performance incentive objects of the Company
Ended as 30 September 2020, shares hold by all incentive objects amounting to 10,542,267 shares, a 1.0092 % in
total share capital of the Company, including 8,852,374 A-share, a 0.8474% in total share capital and 1,689,893
B-share, a 0.1618% in total share capital of the Company. Other grantees of the 2012, 2013, 2014 and 2016
incentive plan have reduced holding of 5,971,548 in aggregate, accounting for about 0.5717% of the total share
capital and 657,950 shares are reduced in the reporting period.
(ii) Transaction with Sichuan Changhong Group Finance Co., Ltd
According to The Proposal on Continuing Related Transactions with Sichuan Changhong Group Finance Co., Ltd.
in 2020 approved by the deliberation of the 31st meeting of the ninth board of directors and the 16th meeting of the
ninth board of supervisors and the fourth extraordinary general meeting of shareholders in 2019 held on
November 29 and December 17, 2019, and approved by resolution of the 41st meeting of the ninth board of
directors and the fourth extraordinary general meeting of shareholders held on August 14 and October 12, 2020,
approved and agreed the company to continue carry out the financial service cooperation with Sichuan
Changhong Group Finance Co., Ltd. (hereinafter referred to as “Changhong Finance Company”) and sign a
triennial Financial Service Agreement, Changhong Finance Company shall provide a series of financial services
such as deposit and loan in its business scope according to the requirements of the Company and its subsidiaries.
The related transactions between the company and its subsidiaries and Changhong Finance Company from the
10
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
beginning of the year to the end of the reporting period are as follows:
In RMB
Interest,
Increased during the Decreased during the
Item Opening balance Ending balance handling charge
period period
paid or received
I. Savings in
Changhong Group 3,702,382,630.38 30,232,646,408.28 30,929,151,163.32 3,005,877,875.34 90,205,609.83
Finance Company
II. Borrowings
from Changhong
Group Finance
Company
1.Short-term loans - 125,000,000.00 125,000,000.00 - 60,638.89
2.Long-term loans - - - - -
III. Other financial
business
1.Notes drawing 999,585,345.49 1,878,178,189.69 1,447,378,038.27 1,430,385,496.91 941,235.22
2.Notes discounted 638,333,179.10 1,421,196,636.62 1,174,415,376.15 885,114,439.57 9,724,660.64
(iii) Other significant events
Date for Information index for temporary
Overview
disclosure report disclosure
According to the operation needs and capital management, the Company
Juchao Website:
will recover all the remaining investment in advance, which are under the
January 2, 2020 http://www.cninfo.com.cn
No. 135 directional assets management plan issued by Soochow Securities
(No. 2019-094)
Co., Ltd. (hereinafter, Soochow Securities) subscribed in the earlier period.
After deliberated and approved by BOD, BOS and extraordinary
shareholders’ general meeting, it is agreed that the Company will provide a Juchao Website:
December 26,
credit guarantee to its wholly-owned and controlling subsidiaries with http://www.cninfo.com.cn
2019, January 11,
3670 million yuan in total for year of 2020. The guarantee period for the (No. 2019-088, No. 2019-089,
2020
newly added guarantee lines and the renewed guaranteed lines in the No. 2019-090 and No. 2020-002)
current year shall be one year.
After deliberated and approved by BOD, BOS and extraordinary
shareholders’ general meeting, it is agreed that the Company will complete
the “Intelligent R&D project”, and balance of the fund raised of Juchao Website:
December 26,
125,084,220.44 yuan (including interest income of financing and deposit http://www.cninfo.com.cn
2019, January 11,
47,970,805.20 yuan) and the interest settled in the future are used to (No. 2019-088, No. 2019-089,
2020
permanently supplement the working capital as of 30 November 2019. The No. 2019-091 and No. 2020-002)
specific amount shall be the actual amount after deducting the reservation
contract balance payment and quality retention money from the special
11
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
account on the day the fund is transferred out. Meanwhile, total of
114,368,326.60 yuan of the outstanding contract balance payment and
quality retention money shall continue to be kept in the fund raising
account and shall be paid as agreed in the contract.
After deliberated and approved by BOD, BOS and shareholders’ general
meeting, it is agreed that the Company and its subsidiaries shall use their
Juchao Website:
own idle funds (1.3 billion yuan at most, and the line can be used in a
http://www.cninfo.com.cn
rolling way) to invest in the bank financial products with high security, January 21, 2020
(No. 2020-003, No. 2020-004 and
good liquidity, low risk and stability within one year, and the authorization
No. 2020-009)
period shall be valid for one year from the date of approval by the
shareholders’ general meeting.
After deliberated and approved by BOD, BOS and shareholders’ general
meeting, it is agreed that the Company can use up to 199 million yuan of
Juchao Website:
idle raised funds (the amount can be used on a rolling basis) to invest in a
http://www.cninfo.com.cn
capital-guaranteed financial products with high security, good liquidity and January 21, 2020
(No. 2020-003, No. 2020-004,
a single product period of no more than one year, the authorization period
No. 2020-006 and No. 2020-009)
shall be valid within one year from the date of approval by the
shareholders’ general meeting.
After deliberated and approved by BOD and shareholders’ general
meeting, it is agreed that the Company and its subsidiary shall carry out
Juchao Website:
forward foreign exchange capital trading business from 1 July 2020 to 30
March 28, 2020, http://www.cninfo.com.cn
June 2021, with a business transaction balance not exceeding US$650
May 30, 2020 (No. 2020-012, No. 2020-017 and
million (mainly including US dollars, Australian dollars and Euros, and all
No. 2020-036)
other foreign exchange converted into US dollars), the longest period of a
single business delivery is not more than one year.
After deliberated and approved by BOD and shareholders’ general
meeting, it is agreed that the Company and its wholly-owned subsidiary
Sichuan Changhong Air Conditioning Co., Ltd. (hereinafter the
Juchao Website:
Changhong AC) will jointly increase the capital of 150 million yuan to the
March 28, 2020, http://www.cninfo.com.cn
subsidiary Zhongshan Changhong Electric Appliance Co., Ltd.( hereinafter
May 30, 2020 (No. 2020-012, No. 2020-018 and
referred to as “Zhongshan Changhong”) with their own funds according to
No. 2020-036)
the current shareholding ratio, of which the capital increase of the
Company is 135 million yuan and the capital increase of Changhong AC is
15 million yuan.
After deliberated and approved by BOD, BOS and shareholders’ general
meeting, it is agreed that the Company will increase the credit guarantee Juchao Website:
line of no more than 30 million yuan to the subsidiary company Zhongke March 28, 2020, http://www.cninfo.com.cn
Meiling Cryogenic Technology Co. , Ltd. (hereinafter referred to as May 30, 2020 (No. 2020-012, No. 2020-013,
"Zhongke Meiling") with period of one year for day-to-day production and No. 2020-019 and No. 2020-036)
operation.
After deliberated and approved by BOD and shareholders’ general March 28, 2020, Juchao Website:
meeting, it is agreed to continue appointing the Shine Wing Certified May 30, 2020 http://www.cninfo.com.cn
12
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
Public Accountants (LLP) as the auditing institution of the financial report (No. 2020-012, No. 2020-015 and
and internal control of the Company for 2020 for a period of one year. No. 2020-036)
Meanwhile, request the shareholders’ general meeting to authorize the
management of the Company to determine its annual audit charges
according to the industry standards and actual works of the audit.
After deliberated and approved by BOD, it is agreed that the company
would transfer the 0.18% equity of Ridian Technology held by Subsidiary
Changhong Meiling Ridian Technology Co., Ltd. (hereinafter referred to
as "Changmei Ridian") natural person shareholder Wu Changyuan with its
Juchao Website:
own funds (initial investment amount of 150,000 yuan), and the equity
April 18, 2020 http://www.cninfo.com.cn
transfer price was based on Ridian Technology’s audited net assets of
(No. 2020-022)
155,582,873.62 yuan as of December 31, 2019, the equity transfer price
was determined to be 280,049.17 yuan. After the equity transfer, the
company holds 99.036% of Ridian Technology's equity, and natural person
shareholder Hu Zhiheng holds 0.964% of Ridian Technology's equity.
After deliberated and approved by BOD, it is agreed that the company
would transfer 100% equity of 7 subsidiaries held by the company’s
wholly-owned subsidiary Hefei Meiling Electric Appliances Marketing Juchao Website:
Co., Ltd., including Chengdu Meiling Electric Appliances Marketing Co., April 18, 2020 http://www.cninfo.com.cn
Ltd., Fuzhou Meiling Electric Appliances Marketing Co., Ltd., and etc. (No. 2020-022)
and total of seven subsidiaries, to Hefei Meiling Group Holdings Limited,
which is a wholly-owned subsidiary of the company,
After deliberated and approved by BOD and shareholders’ general
meeting, it is agreed the company to use the total share capital of
Juchao Website:
1,044,597,881 shares on December 31, 2019 as the base, and distribute a March 28, 2020, http://www.cninfo.com.cn
cash dividend of 0.5 yuan (including tax) per every 10 shares to all May 8, 2020, (No. 2020-012, No. 2020-013,
May 30, 2020,
shareholders, who distributed cash dividends of 52,229,894.05 yuan No. 2020-028, No. 2020-036 and
June 11, 2020
(including tax) in total. The company has implemented and completed the No. 2020-038)
aforementioned profit distribution plan.
After deliberated and approved by BOD, the Company agreed to invest
approximately 20.21 million yuan on the expansion technology Juchao Website:
improvement for production line of the export refrigerators, with purpose June 30, 2020 http://www.cninfo.com.cn
of improving the production capacity, technical standards and product (No. 2020-041)
competitiveness.
After deliberated and approved by BOD,it is agreed that wholly-owned
subsidiary Changhong Air-conditioner would apply to the Agricultural
Bank of China Co., Ltd. Mianyang Fucheng Sub-branch for bank
Juchao Website:
acceptance drafts not exceeding 100 million yuan with the pledge of time
June 30, 2020 http://www.cninfo.com.cn
deposit certificates, the time limit was one year; and agreed that
(No. 2020-041 and No. 2020-042)
Changhong Air-conditioner could apply to Bohai Bank Co., Ltd. Chengdu
Branch for bank acceptance drafts not exceeding 100 million yuan with the
pledge of time deposit certificates, the time limit was one year; and agreed
13
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
that Changhong Air-conditioner could apply to Liangli Sub-branch of
Chengdu Rural Commercial Bank Co., Ltd. for bank acceptance drafts not
exceeding 100 million yuan with the pledge of time deposit certificates,
and the time limit was one year.
The company and its subsidiaries have received various government Juchao Website:
subsidies totaling RMB 50,907,539.53 from January 1, 2020 to June 30, July 2, 2020 http://www.cninfo.com.cn
2020. (No. 2020-043)
Juchao Website:
On July 23, 2020, the company issued the Reminder Announcement on
July 23, 2020 http://www.cninfo.com.cn
Operating Conditions.
(No. 2020-046)
After deliberation and approval by the company’s board of directors, board
of supervisors, and general meeting of shareholders, it was agreed that the
Juchao Website:
company would use its own funds to repurchase part of the company’s
July 28, 2020, http://www.cninfo.com.cn
domestically listed foreign shares (B shares) through a centralized bidding
August 19, 2020 (No. 2020-047, No. 2020-048,
transaction. Currently, the share repurchase plan is in the process of being
No. 2020-049 and No. 2020-063)
implemented. For details, please refer to the content of "(IV)
Implementation Progress of Share Repurchase" below.
After deliberated and approved by BOD, BOS and shareholders’ general
meeting, it is agreed that the company would use its own funds to
cooperate with the related party Changhong Huayi Compressor Co., Ltd. September 10, Juchao Website:
(hereinafter referred to as "Changhong Huayi") to respectively increase 2019, September http://www.cninfo.com.cn
capital of RMB 500 million to Sichuan Changhong Group Finance Co., 27, 2019, July (No. 2020-060, No. 2020-061,
Ltd. (hereinafter referred to as "Changhong Finance Company"), for a total 28, 2020, August No. 2020-063, No. 2020-067, No.
capital increase of RMB one billion. After the capital increase, the 8, 2020 2020-51 and No. 2020-054)
company and Changhong Huayi respectively hold 14.96% of the equity of
Changhong Finance Company.
After deliberation and approval by the company’s board of directors and
Juchao Website:
board of supervisors, it was agreed that the company would implement the
http://www.cninfo.com.cn
new revenue standards and change related accounting policies in August 15, 2020
(No. 2020-056, No. 2020-057 and
accordance with the relevant regulations and requirements of the Ministry
No. 2020-059)
of Finance.
After deliberated and approved by BOD, BOS and shareholders’ general
meeting, it is agreed the company to continue sign a triennial Financial
Service Agreement with Changhong Finance Company, it is agreed that
Juchao Website:
the maximum deposit balance (including accrued interest and handling
August 15, 2020, http://www.cninfo.com.cn
fees) and the highest principal and interest of outstanding loan the
October 13, 2020 (No. 2020-056, No. 2020-057,
Company in any finance company within the three-year validity period
No. 2020-061 and No. 2020-083)
from the effective date of the new agreement shall be adjusted to not
exceed RMB 4.5 billion per day. Changhong Finance Company shall
provide a series of financial services to the Company and its subsidiaries.
After deliberation and approval by the company’s board of directors and Juchao Website:
August 15, 2020
board of supervisors, it was agreed that the company would expect the http://www.cninfo.com.cn
14
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
company and its holding subsidiaries to increase the daily related (No. 2020-056, No. 2019-057 and
transactions provided by Yuanxin Financial Leasing Co., Ltd., such as No. 2020-062)
financial leasing, commercial factoring, order financing ,etc., not
exceeding 45 million yuan in 2020 (excluding tax).
On September 18 and October 12, 2020, the 42nd meeting of the ninth
board of directors of the company, the 23rd meeting of the ninth board of
supervisors, and the fourth extraordinary general meeting of shareholders
in 2020 reviewed and approved the proposal for the election of the tenth
board of directors and the tenth board of supervisors of the company,
including electing Mr. Wu Dinggang, Mr. Kou Huameng, Mr. Yong
Fengshan, Mr. Zhong Ming, Mr. Hu Zhaogui, and Mr. Chen Ye as
non-independent directors of the company's tenth board of directors;
electing Mr. Hong Yuanjia, Ms. Mou Wen and Mr. Zhao Gang as
independent directors of the company's tenth board of directors; electing
Mr. Shao Min, Mr. He Xintan, and Ms. Huang Hong as shareholders'
representative supervisors of the company's tenth board of supervisors, and Juchao Website:
they have composed the company's tenth board of supervisors together September 19, http://www.cninfo.com.cn
with Ms. Ji Ge and Mr. Zhu Wenjie who were elected as employee 2020, October (No. 2020-069, No. 2020-070,
supervisors of tenth board of supervisors by the 4th meeting of the 13, 2020 No. 2020-071, No. 2020-083, No.
company's eighth session of employee representative meeting. The term of 2020-084 and No. 2020-085)
office of the aforementioned directors and supervisors is three years, from
December 12, 2020 to December 12, 2023.
On October 12, 2020, the first meeting of the company’s tenth board of
directors agreed to elect Mr. Wu Dinggang as the president of the
company’s tenth board of directors; the meeting also reviewed and
approved the Proposal on the Establishment of Special Committees Under
the Company’s Tenth Board of Directors and the Proposal on Appointment
of the Company’s Senior Managers.
On the same day, the first meeting of the tenth board of supervisors of the
company passed a resolution and agreed to elect Mr. Shao Min as the
chairman of the board of supervisors of the tenth board of supervisors.
After deliberation and approval by the company’s board of directors, it was
agreed that the company would transfer 100% equity of Hefei Meiling
Electrical Appliance Marketing Co., Ltd., a wholly-owned subsidiary of Juchao Website:
September 19,
the company, in Taiyuan Meiling Electrical Appliance Marketing Co., Ltd., http://www.cninfo.com.cn
2020
Tianjin Meiling Electrical Appliance Marketing Co., Ltd., and Zhengzhou (No. 2020-069)
Meiling Electrical Appliance Marketing Co., Ltd., to Hefei Meiling Group
Holdings Co., Ltd., a wholly-owned subsidiary of the company.
After deliberation and approval by the company’s board of directors, it was
agreed that the company’s wholly-owned subsidiary Meiling Group would Juchao Website:
September 19,
merge its wholly-owned subsidiaries Chengdu Meiling Electrical http://www.cninfo.com.cn
2020
Appliance Marketing Co., Ltd., Fuzhou Meiling Electrical Appliance (No. 2020-069)
Marketing Co., Ltd., Hangzhou Meiling Electrical Appliance Marketing
15
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
Co., Ltd. and other 7 subsidiaries.
On September 29, 2020, the company received a total of 27,824,000 yuan
of capital allocation from Sichuan Hongyun New Generation Information Juchao Website:
Technology Venture Capital Fund Partnership (Limited Partnership) October 10, 2020 http://www.cninfo.com.cn
(hereinafter referred to as "Hongyun Fund"), a shareholding company of (No. 2020-082)
the company.
After deliberated and approved by BOD and shareholders’ general
meeting, it is agreed that the company should apply to China Construction
Bank Co., Ltd. Hefei Luyang Sub-branch for a special credit line of up to
700 million yuan in bill pools; agreed that the company could apply to
Ping An Bank Co., Ltd. Hefei Branch for a special credit line of up to 300
million yuan in bill pools; agreed that the company could apply to Hefei
Juchao Website:
Economic Development Zone Branch of Huishang Bank Co., Ltd. for a
March 28, 2020, http://www.cninfo.com.cn
special credit line of up to 300 million yuan in bill pools; agreed that the
April 18, 2020, (No. 2020-012, No. 2020-020,
company could apply to the Hefei Branch of China Merchants Bank Co.,
May 8, 2020, No. 2020-022, No. 2020-025, No.
Ltd. for a special credit line of up to 300 million yuan in the bill pools;
May 30, 2020, 2020-029, No. 2020-030, No.
agreed that the company could apply to the Hefei Branch of Hua Xia Bank
September 19, 2020-036, No. 2020-036, No.
Co., Ltd. for a special credit line of up to 500 million yuan in the bill
2020 2020-069, No. 2020-078 and No.
pools; agreed that the company could apply to the Hefei Branch of Bank of
2020-083)
Hangzhou Co., Ltd.for a special credit line of up to 600 million yuan in the
bill pools; agreed that the company could apply to the Hefei Branch of
Zheshang Bank Co., Ltd. for a special credit line of up to 500 million yuan
in the bill pools; agreed that the company could apply to Anhui Branch of
Bank of Communications Co., Ltd. for a special credit line of up to 1000
million yuan in the bill pools;
(iv) Implementation progress of shares buy-back
√ Applicable □ Not applicable
The company’s 40th meeting of the ninth board of directors, the 21st meeting of the ninth board of supervisors, and
the 3rd extraordinary general meeting of shareholders in 2020 held on July 27, 2020 and August 18, 2020
deliberated and approved the Proposal on the Repurchase of Part of Domestically Listed Foreign Shares (B Shares)
of the Company, and agreed that the company would use its own funds to repurchase the company’s B shares in a
centralized bidding transaction within 12 months from the date of review and approval of the plan for the
repurchase of part of domestically listed foreign shares (B shares). The price of the repurchased B shares shall not
exceed HK$2.21 per share (inclusive), and shall not exceed 150% of the average transaction price of the
company’s B shares on the 30 trading days before the resolution of the repurchase of shares by the board of
directors. The total amount of funds for the repurchase of B shares shall be no less than 50 million yuan (inclusive)
and no more than 100 million yuan (inclusive), based on the central parity rate of HKD to RMB on July 24, 2020,
i.e. 1 HKD = 0.9023 RMB, the equivalent Hong Kong dollar shall be no less than 55,413,942.15 Hong Kong
dollars (inclusive) and no more than 110,827,884.30 Hong Kong dollars (inclusive) (the actual amount of Hong
Kong dollars used shall be converted based on the exchange rate on the day when the company purchases foreign
exchange, including foreign exchange purchase, transaction fees and other related fees).
As of the disclosure date of this report, the company has opened a special securities account for repurchase at
China Securities Depository and Clearing Co., Ltd. Shenzhen Branch. At present, the company is promoting the
16
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
purchase and payment of foreign exchange work involved in this share repurchase. As of September 30, 2020, the
company's special securities account for repurchase has not yet purchased the company's B shares.
Found more on announcement (Notice No.:2020-047, 2020-048, 2020-048, 2020-049, 2020-052, 2020-055,
2020-063, 2020-064, 2020-065, 2020-066 and 2020-081) released on appointed media China Securities Journal,
Securities Times, Hong Kong Commercial Daily and Juchao Website dated July 28, July 31, August 14, August 19,
September 4, October 10, 2020 respectively.
(v) Implementation progress of the reduction of repurchases shares by centralized bidding
□ Applicable √ Not applicable
III. Commitments completed in Period and those without completed till end of the Period
from actual controller, shareholders, related parties, purchaser and companies
□ Applicable √ Not applicable
The Company has no commitments completed in Period and those without completed till end of the Period from
actual controller, shareholders, related parties, purchaser and companies.
IV. Financial asset investment
1. Securities Investment
□ Applicable √ Not applicable
No security investment in Period.
2. Derivative investment
√ Applicable □Not applicable
17
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
In 10 thousand Yuan
Amount of
Ratio of
reserve for
investment
Relate Whether Investment Amount Amount devaluatio
Investment amount at Actual
d related Initial amount at purchased in sales in the n of
Operator Type Start date End date amount at period-end in gains/losses in
relatio trade or investment period-begi the reporting reporting withdrawi
period-end net assets of the period
nship not n period period ng (if
Company at
applicable
period-end
)
Forward foreign
Financial
N/A No exchange 118,035.04 June 28, 2019 August 25, 2021 73,225.52 219,119.46 137,797.85 - 153,271.02 31.76% 1,276.11
institution
contract
Total 118,035.04 -- -- 73,225.52 219,119.46 137,797.85 - 153,271.02 31.76% 1,276.11
Capital resource Self-owned capital
Lawsuit involved (if applicable) Not applicable
Disclosure date for approval from the Board for
March 26, 2020
investment of derivatives (if applicable)
Disclosure date for approval from board of
shareholders for investment of derivatives (if May 29, 2020
applicable)
18
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
Risk analysis:
1. Market risk: domestic and international economic situation changes may lead to exchange rate fluctuations, forward foreign exchange transactions are under
certain market risk. Forward foreign exchange business is aiming to reducing impact on corporate profits by foreign exchange settlement and sale prices,
exchange rate fluctuations. The Company will follow up the exchange fluctuation, on the basis of target rate determined from the business, relying on the
research of the foreign currency exchange rates, combined with prediction of consignments, and burdening ability to price variations due to exchange rate
fluctuations, then determine the plan of forward foreign exchange contracts, and make dynamic management to the business, to ensure reasonable profit level.
Risk analysis and controlling measures for 2. Liquidity risk: all foreign exchange transactions are based on a reasonable estimate of the future import and export business, to meet the requirements of the
derivatives holdings in the Period (including trade authenticity. In addition, forward foreign exchange transactions are processed with bank credit, will not affect liquidity of company funds.
but not limited to market risk, liquidity risk, 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
credit risks, operation risk and law risks etc.) contract price, which leads the risk of income uncertainty. So the Company chose five state-owned banks, the Chinese-funded banks in shareholding enterprise as
Everbright Bank, Industrial Bank and the foreign-funded banks as UOB, OCBC, BEA etc. to conduct the trading of foreign exchange capital. These banks share
a solid strength and management whose failure and the risk of loss may bring to the Company is very low.
4. Operational risk: improper operation of the person in charge of forward foreign exchange transactions may cause related risk also. The Company has
formulated related management system which defines the operation process and responsibility to prevent and control risks.
5. The legal risks: unclear terms based in contract signed with banks for related transactions may lead legal risks when forward foreign exchange transactions are
processing. The Company will strengthen legal review, and choose good bank to carry out this kind of business as to risk control.
Invested derivative products have changes in The Company determines fair value in accordance with the Chapter VII “Determination of Fair Value” carried in the Accounting Standards for Business
market price or fair value in the Period, as for Enterprises No.22 - Recognition and Measurement of Financial Instruments. Fair-value is basically obtained according to prices offered by bank and other
analysis of the fair value of derivatives, pricing services. While fair-value of derivatives is mainly obtained according to the balance between prices given by outstanding contracts and forward prices
disclosed specific applied methods and given by contracts signed during the reporting period with bank. The differences are identified as trading financial assets and liabilities. During the reporting
correlation assumption and parameter setting period, forward foreign exchange contracts and losses of the Company is 12,761,100 yuan
Specific principle of the accounting policy and
calculation for derivatives in the Period
Not applicable
compared with last period in aspect of major
changes
19
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
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 Company issued by Shenzhen Stock Exchange, the Changhong Meiling 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 and board meeting. The Company conducts no foreign exchange transactions on
Special opinion on derivative investment and
the purpose of getting profit only, all of the forward foreign exchange transactions are operates based on normal operating and production, which is relying on
risk control by independent directors
specific business operations with purpose of avoiding the preventing the risks in exchange rate. The forward foreign exchange transactions of the Company are
beneficial to prevent the exchange risks exposed by import and export business and thus met its requirement for operation development. There was no speculative
operation, no break of relevant rules and regulations and relevant business was conducted under corresponding decision-making procedures. Interests of the
Company and entire shareholders, especially minority shareholders, were not prejudiced.
20
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
V. Progress of investment projects with raised funds
√ Applicable □Not applicable
Particular about process of the fund raised and investment of fund raised in the report period
The Company implemented a private placement of A-share in year of 2016, totally 1,569,999,998.84 Yuan raised,
net money raised amounting to 1,540,732,722.76 Yuan after deducted vary issuance costs (tax included)
29,267,276.08 Yuan.
The resolutions of the 35th session of the 9th Board of Directors of the Company, the 18th session of the 9th Board
of Supervisors of the Company, and the 2nd Extraordinary General Meeting of 2020 passed, and the independent
directors consented, and the sponsor institution made unanimous verification opinions to agree the company to use
the idle raised funds of not exceeding RMB 199 million to invest in the principal-protected financial products with
high security, good liquidity and allotted time of single item not more than one year, the authorization period is
valid for one year from the date of approval by the company’s general meeting of shareholders. Up to now, the
company is normatively using the raised funds to purchase bank financial product in accordance with the
decision-making and relevant regulations and requirements.
As of 30 September 2020, the fund raising project of non-public stock issuance of 2016 has 1,034,380,219.64
yuan actually used in total, at the same time, the amount permanent supplementary working capital of the
Company cumulatively as 432,609,413.91 yuan. Of which, during the reporting period, the fund raising used by
the Company amounted to 53,264,108.15 yuan (including bank handling fee and cost of labor 835 yuan), the
amount permanently supplements the working capital was 126,766,362.64 yuan. In addition, the specific account
for fund raising gains a deposit interest of 616,040.46 yuan, the income from bank financial products on due with
idle fund raising was 2,703,835.86 yuan. As of 30 September 2020, balance of the storage specific account for
fund raising was 196,491,846.32 yuan (including interest income 3,669,061.19 yuan, income from bank financial
products on due 38,434,756.24 yuan and the bank financial products of 1,500,000,000,000 yuan purchased by idle
fund raising). More details are:
In RMB
Balance of raised
Proposed Accumulated Permanent funds (including
Total project
Serial Name investment amount investment amount (as replenishment the financing income
investment
of raised funds of 30 September 2020) working capital and deposit
interest income)
Construction of
1 intelligent 398,706,500 391,000,000 308,135,715.87 - 124,157,743.44
manufacturing project
Including: Intelligent
1.1 Manufacturing (Hefei) 278,706,500 271,000,000 253,833,241.83 - 54,939,356.32
project
21
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
Production line for the
annual capacity of 2
1.2 120,000,000 120,000,000 54,302,474.04 - 69,218,387.12
million washing
machines (Phase II)
Construction of
intelligent R&D
capability and new
2 559,000,000 559,000,000 537,129,202.64 126,766,362.64 72,334,102.88
products development
of the intelligent
appliance technology
3 Intelligent life project 320,760,000 320,000,000 350,844,651.27 305,843,051.27 0
Supplementary the
4 300,000,000 270,732,700 270,880,063.77 - 0
floating capital
Total 1,578,466,500 1,540,732,700 1,466,989,633.55 432,609,413.91 196,491,846.32
Note 1: According to the plan for the use of raised funds approved by the shareholders' general meeting, the
company has withdrawn the remaining funds raised and interest income from this “Intelligent life project” account,
a total of 305,843,051.27 yuan, to permanently supplement the company’s working capital on 26 July 2019, 19
August, and 11 October respectively. After the withdrawal, the remaining funds of the special account for the
raised funds were 0 yuan, and the account was cancelled. At the same time, the company implemented the
liquidation and cancellation of Changmei Technology Co., Ltd., the main body of the project.
Note 2: According to the plan for the use of raised funds approved by the shareholders' general meeting, on
January 15, 2020, the company withdrew the remaining raised funds, wealth management and interest income
totaling 126,766,362.64 yuan after deducting the balance of the contract to be paid and the guarantee deposit from
the “intelligent research and development project” account for permanent supplements of the company’s working
capital. After the withdrawal, the remaining funds of the special account of the raised funds would continue to be
used to pay the contract balance and guarantee deposit.
VI. Prediction of 2020 business performance
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. Major contracts for daily operations
□ Applicable √ Not applicable
22
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
VIII. Trust financing
√Applicable □ Not applicable
In 10 thousand Yuan
Type Capital resources Amount for entrust Undue balance Overdue amount
Bank financing products Own funds 48,500 5,000 0
Bank financing products Idle raised funds 45,000 15,000 0
Total 93,500 20,000 0
Details of the single major amount, or high-risk trust investment with low security, poor fluidity and
non-guaranteed:
√Applicable □ Not applicable
23
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
In 10 thousand Yuan
Am
ount
of
reser Whe
ve ther
for appr
Anticip Actual
Trustee Referen deva oved Whether Summary of the
ated Actual collecte
institutio Sourc Criteria ce luati by has entrust items and
Truste Product Start Expiry income gains/lo d
n (or Amount e of Capital investment purpose for fixing annual on legal finance related query
e type type date date (if sses in gains/lo
name of funds reward rate of of proc plan in the index (if
applica period sses in
trustee) return with edur future applicable)
ble) period
dra e
win (Y/N
g (if )
appl
icabl
e)
Chengdu Principal Febr Juchao
The structured deposit product,
Branch -guarante Idle uary May Annualize Website(www.c
the structural derivatives tied Not
of Bohai Bank ed with 10,000.00 raised 21, 25, d returns: 3.80% 99.22 97.86 97.86 N/A Y ninfo.com.cn)
with the 3-month interbank applicable
Bank floating funds 202 2020 3.80% (Notice No.:
lending rate in London (Libor)
Co., Ltd income 0 2020-010)
This product is a structured
Mianyan Guarante
Mar deposit product. The spot Juchao
g ed exchange rate of US dollar to
Idle ch June Annualize Website(www.c
Economi capital Swiss franc is taken from the Not
Bank 5,000.00 raised 10, 10, d returns: 3.60% 46.00 45.37 45.37 N/A Y ninfo.com.cn)
c and quotes U.S. dollar drawn by applicable
funds 202 2020 EBS (Interbank Electronic 3.60% (Notice No.:
Develop minimu
0 Trading System) between 5 a.m. 2020-011)
ment m return Sydney time every Monday and
24
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
5 p.m. New York time every
Zone
Friday against Swiss francs.
branch of
Bank of
China
Limited
Investment of the central bank
bill in bank market, treasury
Hefei Principal bond, corporate bonds, Juchao
Apri
Branch -guarante Idle July short-term financing, Annualize Website(www.c
l 20, Not
of China Bank ed with 5,000.00 own 20, medium-term bills, inter-bank d returns: 3.85% 48.66 48.12 48.12 N/A Y ninfo.com.cn)
202 applicable
Guangfa floating funds 2020 borrowing, inter-bank deposits, 3.85% (Notice No.:
0
Bank income bills or bill repurchase etc., and 2020-026)
interest rate-linked option
products
Hefei
Deposits embedded in financial
Branch Principal Juchao
Apri derivatives absorbed by the
of Bank -guarante Idle July Annualize Website(www.c
l 21, Bank are linked to exchange rate Not
of East Bank ed with 5,000.00 own 21, d returns: 3.80% 48.03 48.03 48.03 N/A Y ninfo.com.cn)
202 fluctuations so that depositors applicable
Asia floating funds 2020 3.80% (Notice No.:
0 can obtain corresponding returns
(China) income 2020-026)
on the basis of certain risks.
Co., Ltd.
Mianyan Funds raised by this product are
g operated uniformly by the Bank
Guarante
Economi of China, and business Juchao
ed Apri
c Idle July management is carried out in Annualize Website(www.c
capital l 23, Not
Develop Bank 10,000.00 own 24, accordance with the principle of d returns: 3.75% 95.83 94.52 94.52 N/A Y ninfo.com.cn)
and 202 applicable
ment funds 2020 separating basic deposits from 3.75% (Notice No.:
minimu 0
Zone derivative transactions. The 2020-027)
m return
branch of principal part raised is included
Bank of in the unified operation and
25
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
China management of the internal
Limited funds of the Bank of China, and
included in the payment scope of
deposit reserves and deposit
insurance premiums. Products
embedded derivatives are partly
invested in derivatives markets
such as exchange rates, interest
rates, commodities, and indices,
and the final product
performance is linked to
derivatives. During the
investment period, Bank of
China uses the income method
to value the embedded option
price of this structured deposit.
This product is a RMB
structured deposit product with
embedded financial derivative
instruments. The bank will
invest the raised structured
Hefei deposit funds in bank time
Principal deposits, and at the same time Juchao
Branch May
-guarante Idle Augus invest in financial derivative Annualize Website(www.c
of China 21, Not
Bank ed with 5,000.00 own t 21, transactions (including but not d returns: 3.30% 42.17 42.50 42.50 N/A Y ninfo.com.cn)
Everbrig 202 limited to options and swaps and applicable
floating funds 2020 3.30% (Notice No.:
ht Bank 0 other derivative transactions) in
income 2020-033)
Co., Ltd. domestic or international
financial markets by limiting the
income of the time deposits to
the upper limit, the sum of the
investment gains and losses of
financial derivative transactions
26
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
and the bank deposit interest
together constitute the income of
structured deposit products.
Mianyan
g Branch Principal The funds collected by the Juchao
May
of Bank -guarante Idle Augus structured deposit products are Annualize Website(www.c
27, Not
of Bank ed with 5,000.00 own t 27, included in the deposit d returns: 3.30% 42.63 41.59 41.59 N/A Y ninfo.com.cn)
202 applicable
Commun floating funds 2020 management category as the 3.30% (Notice No.:
0
ications income principal 2020-034)
Co., Ltd.
Chengdu Principal Juchao
May The structured deposit product,
Branch -guarante Idle Augus Annualize Website(www.c
27, the derivatives tied with the Not
of Bohai Bank ed with 10,000.00 raised t 26, d returns: 3.45% 87.21 86.01 86.01 N/A Y ninfo.com.cn)
3-month interbank lending rate
202 applicable
Bank floating funds 2020 in London (Libor) 3.45% (Notice No.:
0
Co., Ltd income 2020-035)
Mianyan
g Branch Principal The funds collected by the Juchao
June Septe
of Bank -guarante Idle structured deposit products are Annualize Website(www.c
5, mber Not
of Bank ed with 5,000.00 own included in the deposit d returns: 3.27% 42.69 42.11 42.11 N/A Y ninfo.com.cn)
202 7, applicable
Commun floating funds management category as the 3.27% (Notice No.:
0 2020
ications income principal 2020-037)
Co., Ltd.
This product is a structured
Chengdu
Principal deposit product, which refers to Juchao
Branch June Septe deposits embedded in financial
-guarante Idle Annualize Website(www.c
of China 15, mber derivative products linking to Not
Bank ed with raised d returns: 3.30% 41.71 41.14 41.14 N/A Y ninfo.com.cn)
CITIC 5,000.00 202 14, the fluctuation of interest rates, applicable
floating funds exchange rates, indexes and 3.30% (Notice No.:
Bank 0 2020
income other financial market objects or 2020-040)
Co., Ltd. to the credit status of an entity,
27
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
so that depositors can obtain
corresponding benefits on the
basis of bearing certain risks.
Hefei Deposits embedded in financial
Branch Principal derivative products absorbed by Juchao
June Septe
of Bank -guarante Idle banks are linked to exchange Annualize Website(www.c
12, mber Not
of East Bank ed with 5,000.00 own rate fluctuations so that d returns: 3.50% 44.24 44.24 44.24 N/A Y ninfo.com.cn)
202 11, applicable
Asia floating funds depositors can obtain 3.50% (Notice No.:
0 2020
(China) income corresponding returns on the 2020-039)
Limited basis of certain risks.
Funds raised by this product are
operated uniformly by the Bank
of China, and business
management is carried out in
accordance with the principle of
Mianyan
separating basic deposits from
g
derivative transactions. The
Economi
Guarante principal part raised is included
c Juchao
ed Apri in the unified operation and
Develop Idle May Annualize Website(www.c
capital l 22, management of the internal Not
ment Bank 3,500.00 own 25, d returns: 3.40% 10.91 10.76 10.76 N/A Y ninfo.com.cn)
and 202 funds of the Bank of China, and applicable
Zone funds 2020 3.40% (Notice No.:
minimu 0 included in the payment scope of
branch of 2020-026)
m return deposit reserves and deposit
Bank of
insurance premiums. Products
China
embedded derivatives are partly
Limited
invested in derivatives markets
such as exchange rates, interest
rates, commodities, and indices,
and the final product
performance is linked to
28
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
derivatives. During the
investment period, Bank of
China uses the income method
to value the embedded option
price of this structured deposit.
Hefei Deposits embedded in financial
Branch Principal derivative products absorbed by Juchao
July
of Bank -guarante Idle Octob banks are linked to exchange Annualize Website(www.c
15, Not
of East Bank ed with 5,000.00 own er 16, rate fluctuations so that d returns: 3.40% 43.91 - - N/A Y ninfo.com.cn)
202 applicable
Asia floating funds 2020 depositors can obtain 3.40% (Notice No.:
0
(China) income corresponding returns on the 2020-045)
Limited basis of certain risks.
Structured deposits refer to
Chengdu Sept business products that are linked
Principal Juchao
Branch emb Dece to fluctuations in interest rates,
-guarante Idle Annualize Website(www.c
of er mber exchange rates, indexes, etc., or Not
Bank ed with 15,000.00 raised d returns: 2.95% 110.62 - - N/A Y ninfo.com.cn)
Industrial 15, 14, to the credit status of an entity, applicable
floating funds 2.95% (Notice No.:
Bank 202 2020 so that depositors can obtain
income 2020-068)
Co., Ltd. 0 higher returns on the basis of
certain risks.
Total 93,500.00 -- -- -- -- -- -- 803.83 642.25 642.25 -- -- -- --
Entrust financial expected to be unable to recover the principal or impairment might be occurred
□Applicable √ Not applicable
29
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
IX. Guarantee outside against the regulation
□Applicable √Not applicable
The Company had no guarantee outside against the regulation in the reporting period.
X. Non-operational fund occupation from controlling shareholders and its related party
□ Applicable √ Not applicable
The Company had no non-operational fund occupation from controlling shareholders or its related party in the
reporting period.
VIII. Registration form for receiving research, communication and interview in the report
period
√ Applicable □Not applicable
The main content of
Receptio
Reception Reception Reception the discussion and
Reception time n object Index of the basic situation of the survey
location way object the information
type
provided
Company
September 24, Administration Field Institutio Guolian Company http://irm.cninfo.com.cn/ircs/company/companyDeta
2020 Center No. 2 research n Securities management il?stockcode=000521&orgId=gssz0000521
Meeting Room
30
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
Section IV. Financial Statement
I. Financial statement
1. Consolidate balance sheet
Prepared by Changhong Meiling Co., Ltd.
In RMB
Items 2020-9-30 2019-12-31
Current assets:
Monetary fund 4,655,937,296.93 5,499,601,030.64
Settlement provisions
Capital lent
Trading financial assets 28,451,689.69 7,730,268.92
Derivative financial assets
Note receivable 1,789,627,662.91 1,865,165,499.50
Account receivable 2,474,469,751.84 1,387,961,981.66
Receivable financing
Accounts paid in advance 102,147,656.59 25,270,406.37
Insurance receivable
Reinsurance receivables
Contract reserve of reinsurance
receivable
Other account receivable 121,045,105.24 97,241,894.80
Including: Interest receivable 6,588,544.33 9,510,208.63
Dividend receivable 661,434.48
Buying back the sale of financial
assets
Inventories 1,767,604,113.33 1,460,910,189.06
Contractual assets
Assets held for sale
Non-current asset due within one
year
Other current assets 247,545,304.92 63,604,031.96
Total current assets 11,186,828,581.45 10,407,485,302.91
31
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
Non-current assets:
Loans and payments on behalf
Debt investment
Other debt investment
Long-term account receivable
Long-term equity investment 81,092,355.70 88,556,511.70
Investment in other equity
instrument
Other non-current financial assets 542,540,000.00 45,000,000.00
Investment real estate 54,357,952.53 96,343,760.13
Fixed assets 2,326,714,921.44 2,180,572,946.87
Construction in progress 110,309,222.32 252,494,792.31
Productive biological asset
Oil and gas asset
Right-of-use assets
Intangible assets 952,907,683.39 933,248,463.84
Expense on Research and
83,897,499.02 101,078,659.57
Development
Goodwill
Long-term expenses to be
apportioned
Deferred income tax asset 113,366,601.02 97,453,178.14
Other non-current asset
Total non-current asset 4,265,186,235.42 3,794,748,312.56
Total assets 15,452,014,816.87 14,202,233,615.47
Current liabilities:
Short-term loans 1,215,801,769.00 1,103,991,045.96
Loan from central bank
Capital borrowed
Trading financial liability 3,846,486.01 1,081,534.93
Derivative financial liability
Note payable 3,974,823,906.29 3,490,271,482.40
Account payable 2,930,393,650.19 2,343,116,374.58
Accounts received in advance 425,149,194.97
Contractual liability 297,497,485.45
32
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
Selling financial asset of
repurchase
Absorbing deposit and interbank
deposit
Security trading of agency
Security sales of agency
Wage payable 214,068,066.26 196,507,174.68
Taxes payable 106,761,494.22 68,558,391.66
Other account payable 846,024,664.04 689,477,603.21
Including: Interest payable 8,506,689.76 12,340,385.61
Dividend payable 4,466,628.25 3,579,491.94
Commission charge and
commission payable
Reinsurance payable
Liability held for sale
Non-current liabilities due within
405,676,176.26 1,708,193.90
one year
Other current liabilities
Total current liabilities 9,994,893,697.72 8,319,860,996.29
Non-current liabilities:
Insurance contract reserve
Long-term loans 192,640,000.00 401,280,000.00
Bonds payable
Including: Preferred stock
Perpetual capital
securities
Lease liability
Long-term account payable 1,878,823.17 3,016,921.44
Long-term wages payable 11,490,660.94 13,774,110.61
Accrual liability 144,403,117.40 166,099,143.97
Deferred income 173,033,976.00 179,970,971.92
Deferred income tax liabilities 8,611,131.03 6,256,759.14
Other non-current liabilities
Total non-current liabilities 532,057,708.54 770,397,907.08
Total liabilities 10,526,951,406.26 9,090,258,903.37
33
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
Owner’s equity:
Share capital 1,044,597,881.00 1,044,597,881.00
Other equity instrument
Including: Preferred stock
Perpetual capital
securities
Capital public reserve 2,683,933,116.75 2,684,366,619.10
Less: Inventory shares
Other comprehensive income -21,822,864.64 -18,931,430.36
Reasonable reserve
Surplus public reserve 410,786,860.20 410,786,860.20
Provision of general risk
Retained profit 708,342,323.00 884,127,743.42
Total owner’ s equity attributable to
4,825,837,316.31 5,004,947,673.36
parent company
Minority interests 99,226,094.30 107,027,038.74
Total owner’ s equity 4,925,063,410.61 5,111,974,712.10
Total liabilities and owner’ s equity 15,452,014,816.87 14,202,233,615.47
Legal Representative: Wu Dinggang
Person in charge of accounting works: Pang Haitao
Person in charge of accounting institute: Yang Jun
2. Balance Sheet of Parent Company
In RMB
Item 2020-9-30 2019-12-31
Current assets:
Monetary funds 3,007,818,915.23 4,040,632,437.18
Trading financial assets 28,334,702.77 5,967,556.00
Derivative financial assets
Note receivable 1,545,386,896.07 1,722,707,248.74
Account receivable 2,008,084,819.40 1,158,563,389.33
Receivable financing
Accounts paid in advance 73,969,626.76 34,374,932.07
34
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
Other account receivable 47,619,907.02 41,964,639.42
Including: Interest receivable 3,546,029.02 7,880,186.85
Dividend receivable 661,434.48
Inventories 438,233,940.76 339,728,296.66
Contractual assets
Assets held for sale
Non-current assets maturing within
one year
Other current assets 204,470,915.67 11,930,690.86
Total current assets 7,353,919,723.68 7,355,869,190.26
Non-current assets:
Debt investment
Other debt investment
Long-term receivables
Long-term equity investments 1,835,450,730.64 1,698,744,114.99
Investment in other equity
instrument
Other non-current financial assets 542,540,000.00 45,000,000.00
Investment real estate 4,013,803.54 7,314,721.80
Fixed assets 1,171,227,230.67 1,138,092,635.67
Construction in progress 86,413,924.94 106,575,581.28
Productive biological assets
Oil and natural gas assets
Right-of-use assets
Intangible assets 497,441,481.74 483,887,751.05
Research and development costs 39,617,231.82 56,295,271.74
Goodwill
Long-term deferred expenses
Deferred income tax assets 91,978,459.46 77,849,317.77
Other non-current assets
Total non-current assets 4,268,682,862.81 3,613,759,394.30
Total assets 11,622,602,586.49 10,969,628,584.56
Current liabilities
Short-term borrowings 1,133,943,950.00 1,009,757,944.82
Trading financial liability 1,802,881.00 1,016,052.00
35
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
Derivative financial liability
Notes payable 1,831,961,664.08 1,936,867,907.42
Account payable 1,923,039,755.30 1,497,704,307.48
Accounts received in advance 147,365,864.56
Contractual liability 125,130,910.62
Wage payable 70,323,072.58 39,633,867.87
Taxes payable 19,508,078.18 20,427,731.13
Other accounts payable 536,196,158.47 520,559,494.30
Including: Interest payable 8,441,938.06 13,175,235.76
Dividend payable 3,866,628.25 3,579,491.94
Liability held for sale
Non-current liabilities due within
405,000,000.00
one year
Other current liabilities
Total current liabilities 6,046,906,470.23 5,173,333,169.58
Non-current liabilities:
Long-term loans 192,640,000.00 401,280,000.00
Bonds payable
Including: preferred stock
Perpetual capital
securities
Lease liability
Long-term account payable
Long term employee compensation
11,490,660.94 13,774,110.61
payable
Accrued liabilities 137,046,292.64 158,742,319.21
Deferred income 65,792,773.67 67,664,815.53
Deferred income tax liabilities 3,979,773.27 742,725.60
Other non-current liabilities
Total non-current liabilities 410,949,500.52 642,203,970.95
Total liabilities 6,457,855,970.75 5,815,537,140.53
Owners’ equity:
Share capital 1,044,597,881.00 1,044,597,881.00
Other equity instrument
Including: preferred stock
36
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
Perpetual capital
securities
Capital public reserve 2,753,143,393.37 2,753,017,007.10
Less: Inventory shares
Other comprehensive income
Special reserve
Surplus reserve 410,568,694.52 410,568,694.52
Retained profit 956,436,646.85 945,907,861.41
Total owner’s equity 5,164,746,615.74 5,154,091,444.03
Total liabilities and owner’s equity 11,622,602,586.49 10,969,628,584.56
Legal Representative: Wu Dinggang
Person in charge of accounting works: Pang Haitao
Person in charge of accounting institute: Yang Jun
3. Consolidated Profit Statement (the period)
In RMB
Item Current period Last period
I. Total operating income 4,560,882,229.12 3,907,875,881.65
Including: Operating income 4,560,882,229.12 3,907,875,881.65
Interest income
Insurance gained
Commission charge and
commission income
II. Total operating cost 4,531,206,090.78 3,877,092,843.63
Including: Operating cost 3,715,311,494.72 3,120,899,900.24
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
37
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
Reinsurance expense
Tax and extras 44,493,738.61 37,337,949.44
Sales expense 595,445,892.13 596,324,632.05
Administrative expense 67,866,598.57 75,991,835.54
R&D expense 96,730,152.63 74,045,366.13
Financial expense 11,358,214.12 -27,506,839.77
Including: Interest
23,175,464.46 15,687,265.39
expenses
Interest income 30,618,323.24 38,289,853.37
Add: other income 18,566,975.24 44,877,387.39
Investment income (Loss is
40,002,820.42 -49,991,079.10
listed with “-”)
Including: Investment income
542,880.53 10,073,856.02
on affiliated company and joint venture
The termination of income
recognition for financial assets measured
by amortized cost(Loss is listed with “-”)
Exchange income (Loss is
listed with “-”)
Net exposure hedging income
(Loss is listed with “-”)
Income from change of fair
27,681,553.27 39,820,680.29
value (Loss is listed with “-”)
Loss of credit impairment
-10,737,856.43 -8,463,027.84
(Loss is listed with “-”)
Losses of devaluation of asset
-8,131,027.84 -14,086,299.07
(Loss is listed with “-”)
Income from assets disposal
-364,250.38 -3,498,765.23
(Loss is listed with “-”)
III. Operating profit (Loss is listed with
96,694,352.62 39,441,934.46
“-”)
Add: Non-operating income 1,626,799.23 3,218,452.87
Less: Non-operating expense 247,207.80 1,413,579.86
IV. Total profit (Loss is listed with “-”) 98,073,944.05 41,246,807.47
Less: Income tax expense 4,609,449.11 18,695,794.99
V. Net profit (Net loss is listed with “-”) 93,464,494.94 22,551,012.48
(i) Classify by business continuity
38
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
1.continuous operating net profit
93,464,494.94 22,551,012.48
(net loss listed with ‘-”)
2.termination of net profit (net loss
listed with ‘-”)
(ii) Classify by ownership
1.Net profit attributable to owner’s
86,575,054.56 26,417,996.84
of parent company
2.Minority shareholders’ gains and
6,889,440.38 -3,866,984.36
losses
VI. Net after-tax of other comprehensive
-2,413,984.74 3,855,002.26
income
Net after-tax of other comprehensive
income attributable to owners of parent -2,261,431.44 2,611,878.24
company
(I) Other comprehensive income
items which will not be reclassified
subsequently to profit of loss
1.Changes of the defined
benefit plans that re-measured
2.Other comprehensive
income under equity method that cannot
be transfer to gain/loss
3.Change of fair value of
investment in other equity instrument
4.Fair value change of
enterprise's credit risk
5. Other
(ii) Other comprehensive income
items which will be reclassified -2,261,431.44 2,611,878.24
subsequently to profit or loss
1.Other comprehensive
income under equity method that can
transfer to gain/loss
2.Change of fair value of
other debt investment
3.Amount of financial assets
re-classify to other comprehensive
income
4.Credit impairment
39
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
provision for other debt investment
5.Cash flow hedging reserve
6.Translation differences
arising on translation of foreign currency -2,261,431.44 2,611,878.24
financial statements
7.Other
Net after-tax of other comprehensive
income attributable to minority -152,553.30 1,243,124.02
shareholders
VII. Total comprehensive income 91,050,510.20 26,406,014.74
Total comprehensive income
84,313,623.12 29,029,875.08
attributable to owners of parent Company
Total comprehensive income
6,736,887.08 -2,623,860.34
attributable to minority shareholders
VIII. Earnings per share:
(i) Basic earnings per share 0.0829 0.0253
(ii) Diluted earnings per share 0.0829 0.0253
Enterprise combine under the same control in the Period, the combined party realized net profit of 0 Yuan before combination, and
realized 0 Yuan at last period for combined party
Legal Representative: Wu Dinggang
Person in charge of accounting works: Pang Haitao
Person in charge of accounting institute: Yang Jun
4. Profit Statement of Parent Company (the period)
In RMB
Item Current period Last period
I. Operating income 2,541,140,607.13 2,664,004,704.29
Less: Operating cost 2,352,710,388.97 2,406,427,108.32
Taxes and surcharge 20,674,818.60 21,743,329.48
Sales expenses 128,368,618.23 138,981,640.75
Administration expenses 27,785,528.69 32,418,153.86
R&D expenses 38,895,620.99 29,405,298.29
Financial expenses 19,541,457.12 -6,393,797.98
Including: interest 21,825,893.32 11,934,462.19
40
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
expenses
Interest income 22,685,288.94 28,622,977.37
Add: other income 7,418,544.65 38,236,515.77
Investment income (Loss is
40,313,906.64 -3,964,727.76
listed with “-”)
Including: Investment income
1,041,269.76 5,794,277.12
on affiliated Company and joint venture
The termination of
income recognition for financial assets
measured by amortized cost (Loss is
listed with “-”)
Net exposure hedging income
(Loss is listed with “-”)
Changing income of fair
29,361,123.67 6,592,242.68
value (Loss is listed with “-”)
Loss of credit impairment
-14,051,654.02 -2,371,132.58
(Loss is listed with “-”)
Losses of devaluation of asset
-4,144,576.87 -3,585,011.06
(Loss is listed with “-”)
Income on disposal of assets
-195,720.27 132,203.39
(Loss is listed with “-”)
II. Operating profit (Loss is listed with
11,865,798.33 76,463,062.01
“-”)
Add: Non-operating income 891,190.57 23,930.00
Less: Non-operating expense 248,133.83
III. Total Profit (Loss is listed with “-”) 12,756,988.90 76,238,858.18
Less: Income tax -2,431,050.23 7,419,865.03
IV. Net profit (Net loss is listed with
15,188,039.13 68,818,993.15
“-”)
(i)continuous operating net profit (net
15,188,039.13 68,818,993.15
loss listed with ‘-”)
(ii) termination of net profit (net
loss listed with ‘-”)
V. Net after-tax of other comprehensive
income
(I) Other comprehensive income
items which will not be reclassified
subsequently to profit of loss
41
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
1.Changes of the defined
benefit plans that re-measured
2.Other comprehensive
income under equity method that cannot
be transfer to gain/loss
3.Change of fair value of
investment in other equity instrument
4.Fair value change of
enterprise's credit risk
5. Other
(II) Other comprehensive income
items which will be reclassified
subsequently to profit or loss
1.Other comprehensive
income under equity method that can
transfer to gain/loss
2.Change of fair value of
other debt investment
3.Amount of financial
assets re-classify to other
comprehensive income
4.Credit impairment
provision for other debt investment
5.Cash flow hedging
reserve
6.Translation differences
arising on translation of foreign
currency financial statements
7.Other
VI. Total comprehensive income 15,188,039.13 68,818,993.15
VII. Earnings per share:
(i) Basic earnings per share 0.0145 0.0659
(ii) Diluted earnings per share 0.0145 0.0659
Legal Representative: Wu Dinggang
Person in charge of accounting works: Pang Haitao
Person in charge of accounting institute: Yang Jun
42
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
5. Consolidated Profit Statement (form the year-begin to the period-end)
In RMB
Item Current period Last period
I. Total operating income 11,356,742,966.11 13,041,038,562.59
Including: Operating income 11,356,742,966.11 13,041,038,562.59
Interest income
Insurance gained
Commission charge and
commission income
II. Total operating cost 11,554,834,849.35 12,994,783,658.83
Including: Operating cost 9,469,161,384.07 10,611,455,437.49
Interest expense
Commission charge and
commission expense
Cash surrender value
Net amount of expense of compensation
Net amount of withdrawal of insurance
contract reserve
Bonus expense of guarantee slip
Reinsurance expense
Tax and extras 99,798,451.84 117,977,709.18
Sales expense 1,519,429,320.36 1,840,716,388.92
Administrative expense 203,336,291.49 240,384,878.24
R&D expense 264,619,301.52 194,093,406.99
Financial expense -1,509,899.93 -9,844,161.99
Including: Interest
68,673,511.11 73,580,264.70
expenses
Interest income 105,402,339.93 97,691,279.74
Add: other income 73,419,100.44 80,188,595.99
Investment income (Loss is
47,154,706.68 -38,327,115.65
listed with “-”)
Including: Investment income
752,761.07 1,251,855.70
on affiliated company and joint venture
The termination of income
recognition for financial assets measured
by amortized cost(Loss is listed with “-”)
43
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
Exchange income (Loss is
listed with “-”)
Net exposure hedging income
(Loss is listed with “-”)
Income from change of fair
17,956,801.15 43,185,470.53
value (Loss is listed with “-”)
Loss of credit impairment
-33,008,077.62 1,082,468.11
(Loss is listed with “-”)
Losses of devaluation of asset
-34,714,276.42 -24,702,231.08
(Loss is listed with “-”)
Income from assets disposal
-542,955.36 -4,436,536.97
(Loss is listed with “-”)
III. Operating profit (Loss is listed with
-127,826,584.37 103,245,554.69
“-”)
Add: Non-operating income 5,072,408.44 5,694,649.89
Less: Non-operating expense 1,206,761.93 3,776,106.23
IV. Total profit (Loss is listed with “-”) -123,960,937.86 105,164,098.35
Less: Income tax expense 1,746,437.69 36,397,055.33
V. Net profit (Net loss is listed with “-”) -125,707,375.55 68,767,043.02
(i) Classify by business continuity
1.continuous operating net profit
-125,707,375.55 68,767,043.02
(net loss listed with ‘-”)
2.termination of net profit (net loss
listed with ‘-”)
(ii) Classify by ownership
1.Net profit attributable to owner’s
-123,555,526.37 80,752,019.41
of parent company
2.Minority shareholders’ gains and
-2,151,849.18 -11,984,976.39
losses
VI. Net after-tax of other comprehensive
-3,423,690.97 -3,102,378.92
income
Net after-tax of other comprehensive
income attributable to owners of parent -2,891,434.28 -1,799,468.82
company
(I) Other comprehensive income
items which will not be reclassified
subsequently to profit of loss
1.Changes of the defined
44
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
benefit plans that re-measured
2.Other comprehensive
income under equity method that cannot
be transfer to gain/loss
3.Change of fair value of
investment in other equity instrument
4.Fair value change of
enterprise's credit risk
5. Other
(ii) Other comprehensive income
items which will be reclassified -2,891,434.28 -1,799,468.82
subsequently to profit or loss
1.Other comprehensive
income under equity method that can
transfer to gain/loss
2.Change of fair value of
other debt investment
3.Amount of financial assets
re-classify to other comprehensive
income
4.Credit impairment
provision for other debt investment
5.Cash flow hedging reserve
6.Translation differences
arising on translation of foreign currency -2,891,434.28 -1,799,468.82
financial statements
7.Other
Net after-tax of other comprehensive
income attributable to minority -532,256.69 -1,302,910.10
shareholders
VII. Total comprehensive income -129,131,066.52 65,664,664.10
Total comprehensive income
-126,446,960.65 78,952,550.59
attributable to owners of parent Company
Total comprehensive income
-2,684,105.87 -13,287,886.49
attributable to minority shareholders
VIII. Earnings per share:
(i) Basic earnings per share -0.1183 0.0773
(ii) Diluted earnings per share -0.1183 0.0773
Enterprise combine under the same control in the Period, the combined party realized net profit of 0 Yuan before combination, and
45
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
realized 0 Yuan at last period for combined party
Legal Representative: Wu Dinggang
Person in charge of accounting works: Pang Haitao
Person in charge of accounting institute: Yang Jun
6. Profit Statement of Parent Company (form the year-begin to the period-end)
In RMB
Item Current period Last period
I. Operating income 5,755,104,440.31 7,198,760,931.63
Less: Operating cost 5,374,829,779.12 6,438,821,213.52
Taxes and surcharge 51,017,607.45 59,372,381.91
Sales expenses 238,543,953.01 477,587,775.78
Administration expenses 83,951,545.31 100,853,326.37
R&D expenses 109,077,840.28 80,879,626.58
Financial expenses 3,773,786.93 2,111,585.97
Including: interest
59,550,849.69 54,418,469.14
expenses
Interest income 85,175,878.06 68,936,401.63
Add: other income 45,072,043.52 56,735,800.59
Investment income (Loss is
118,151,575.24 20,154,143.04
listed with “-”)
Including: Investment income
3,779,570.20 2,961,957.42
on affiliated Company and joint venture
The termination of
income recognition for financial assets
measured by amortized cost (Loss is
listed with “-”)
Net exposure hedging income
(Loss is listed with “-”)
Changing income of fair
21,580,317.77 10,027,189.27
value (Loss is listed with “-”)
Loss of credit impairment
-19,248,489.48 10,417,545.43
(Loss is listed with “-”)
Losses of devaluation of asset
-9,357,570.78 -6,377,866.03
(Loss is listed with “-”)
46
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
Income on disposal of assets
-515,309.69 -659,108.67
(Loss is listed with “-”)
II. Operating profit (Loss is listed with
49,592,494.79 129,432,725.13
“-”)
Add: Non-operating income 2,274,090.68 244,520.00
Less: Non-operating expense 248,133.83
III. Total Profit (Loss is listed with “-”) 51,866,585.47 129,429,111.30
Less: Income tax -10,892,094.02 8,477,826.62
IV. Net profit (Net loss is listed with
62,758,679.49 120,951,284.68
“-”)
(i)continuous operating net profit (net
62,758,679.49 120,951,284.68
loss listed with ‘-”)
(ii) termination of net profit (net
loss listed with ‘-”)
V. Net after-tax of other comprehensive
income
(I) Other comprehensive income
items which will not be reclassified
subsequently to profit of loss
1.Changes of the defined
benefit plans that re-measured
2.Other comprehensive
income under equity method that cannot
be transfer to gain/loss
3.Change of fair value of
investment in other equity instrument
4.Fair value change of
enterprise's credit risk
5. Other
(II) Other comprehensive income
items which will be reclassified
subsequently to profit or loss
1.Other comprehensive
income under equity method that can
transfer to gain/loss
2.Change of fair value of
other debt investment
3.Amount of financial
assets re-classify to other
47
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
comprehensive income
4.Credit impairment
provision for other debt investment
5.Cash flow hedging
reserve
6.Translation differences
arising on translation of foreign
currency financial statements
7.Other
VI. Total comprehensive income 62,758,679.49 120,951,284.68
VII. Earnings per share:
(i) Basic earnings per share 0.0601 0.1158
(ii) Diluted earnings per share 0.0601 0.1158
Legal Representative: Wu Dinggang
Person in charge of accounting works: Pang Haitao
Person in charge of accounting institute: Yang Jun
7. Consolidated Cash Flow Statement (form the year-begin to the period-end)
In RMB
Item Current period Last period
I. Cash flows arising from operating
activities:
Cash received from selling
commodities and providing labor 10,004,693,970.59 12,688,809,148.13
services
Net increase of customer deposit
and interbank deposit
Net increase of loan from central
bank
Net increase of capital borrowed
from other financial institution
Cash received from original
insurance contract fee
Net cash received from reinsurance
business
48
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
Net increase of insured savings
and investment
Cash received from interest,
commission charge and commission
Net increase of capital borrowed
Net increase of returned business
capital
Net cash received by agents in sale
and purchase of securities
Write-back of tax received 412,733,445.22 280,384,080.90
Other cash received concerning
106,402,002.16 125,280,221.18
operating activities
Subtotal of cash inflow arising from
10,523,829,417.97 13,094,473,450.21
operating activities
Cash paid for purchasing
commodities and receiving labor 8,837,934,853.44 10,506,147,051.44
service
Net increase of customer loans and
advances
Net increase of deposits in central
bank and interbank
Cash paid for original insurance
contract compensation
Net increase of capital lent
Cash paid for interest, commission
charge and commission
Cash paid for bonus of guarantee
slip
Cash paid to/for staff and workers 1,057,706,226.87 1,153,887,410.73
Taxes paid 237,937,839.39 448,423,347.16
Other cash paid concerning
668,861,446.33 784,789,548.98
operating activities
Subtotal of cash outflow arising from
10,802,440,366.03 12,893,247,358.31
operating activities
Net cash flows arising from operating
-278,610,948.06 201,226,091.90
activities
II. Cash flows arising from investing
activities:
49
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
Cash received from recovering
737,460,000.00 2,174,000,000.00
investment
Cash received from investment
42,570,007.43 37,989,139.50
income
Net cash received from disposal of
fixed, intangible and other long-term 381,041.58 19,483,459.24
assets
Net cash received from disposal of
subsidiaries and other units
Other cash received concerning
122,087,124.32 94,129,473.53
investing activities
Subtotal of cash inflow from investing
902,498,173.33 2,325,602,072.27
activities
Cash paid for purchasing fixed,
296,007,313.74 266,302,834.52
intangible and other long-term assets
Cash paid for investment 1,435,280,051.17 1,981,000,000.00
Net increase of mortgaged loans
Net cash received from
subsidiaries and other units obtained
Other cash paid concerning
76,709,995.61
investing activities
Subtotal of cash outflow from investing
1,731,287,364.91 2,324,012,830.13
activities
Net cash flows arising from investing
-828,789,191.58 1,589,242.14
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 1,703,478,583.33 1,308,256,908.10
Other cash received concerning
financing activities
Subtotal of cash inflow from financing
1,703,478,583.33 1,308,256,908.10
activities
Cash paid for settling debts 1,374,663,591.82 1,925,202,449.42
50
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
Cash paid for dividend and profit
107,526,031.28 127,772,072.70
distributing or interest paying
Including: Dividend and profit of
minority shareholder paid by 4,796,676.00 2,274,030.00
subsidiaries
Other cash paid concerning
2,432,566.62 32,764,857.16
financing activities
Subtotal of cash outflow from financing
1,484,622,189.72 2,085,739,379.28
activities
Net cash flows arising from financing
218,856,393.61 -777,482,471.18
activities
IV. Influence on cash and cash
equivalents due to fluctuation in -18,563,610.41 12,976,331.25
exchange rate
V. Net increase of cash and cash
-907,107,356.44 -561,690,805.89
equivalents
Add: Balance of cash and cash
5,385,807,475.51 4,484,643,187.93
equivalents at the period -begin
VI. Balance of cash and cash
4,478,700,119.07 3,922,952,382.04
equivalents at the period -end
Legal Representative: Wu Dinggang
Person in charge of accounting works: Pang Haitao
Person in charge of accounting institute: Yang Jun
8. Cash Flow Statement of Parent Company (form the year-begin to the period-end)
In RMB
Item Current period Last period
I. Cash flows arising from operating
activities:
Cash received from selling
commodities and providing labor 4,354,136,982.12 6,358,153,483.13
services
Write-back of tax received 202,094,517.08 135,160,922.67
Other cash received concerning
49,386,127.12 66,198,821.85
operating activities
Subtotal of cash inflow arising from 4,605,617,626.32 6,559,513,227.65
51
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
operating activities
Cash paid for purchasing
commodities and receiving labor 4,590,744,074.29 5,874,686,994.43
service
Cash paid to/for staff and workers 272,738,427.46 327,130,629.38
Taxes paid 53,367,393.47 156,564,790.86
Other cash paid concerning
193,120,699.08 330,317,153.84
operating activities
Subtotal of cash outflow arising from
5,109,970,594.30 6,688,699,568.51
operating activities
Net cash flows arising from operating
-504,352,967.98 -129,186,340.86
activities
II. Cash flows arising from investing
activities:
Cash received from recovering
702,460,000.00 2,174,000,000.00
investment
Cash received from investment
110,756,490.39 42,579,139.50
income
Net cash received from disposal of
fixed, intangible and other long-term 293,300.00 6,708,283.94
assets
Net cash received from disposal of
subsidiaries and other units
Other cash received concerning
101,821,310.58 309,067,175.10
investing activities
Subtotal of cash inflow from investing
915,331,100.97 2,532,354,598.54
activities
Cash paid for purchasing fixed,
119,262,604.64 139,125,420.63
intangible and other long-term assets
Cash paid for investment 1,542,169,149.17 1,987,000,000.00
Net cash received from
subsidiaries and other units obtained
Other cash paid concerning
22,000.00 75,426,953.88
investing activities
Subtotal of cash outflow from investing
1,661,453,753.81 2,201,552,374.51
activities
Net cash flows arising from investing
-746,122,652.84 330,802,224.03
activities
52
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
III. Cash flows arising from financing
activities
Cash received from absorbing
investment
Cash received from loans 1,302,447,383.33 1,064,409,999.44
Other cash received concerning
146,722,354.11 28,609,663.72
financing activities
Subtotal of cash inflow from financing
1,449,169,737.44 1,093,019,663.16
activities
Cash paid for settling debts 961,397,944.82 1,451,985,025.00
Cash paid for dividend and profit
94,605,755.57 114,912,675.86
distributing or interest paying
Other cash paid concerning
163,963,741.66 121,717,485.21
financing activities
Subtotal of cash outflow from financing
1,219,967,442.05 1,688,615,186.07
activities
Net cash flows arising from financing
229,202,295.39 -595,595,522.91
activities
IV. Influence on cash and cash
equivalents due to fluctuation in -11,540,196.52 8,391,306.55
exchange rate
V. Net increase of cash and cash
-1,032,813,521.95 -385,588,333.19
equivalents
Add: Balance of cash and cash
4,017,400,437.18 2,894,384,811.05
equivalents at the period -begin
VI. Balance of cash and cash
2,984,586,915.23 2,508,796,477.86
equivalents at the period -end
Legal Representative: Wu Dinggang
Person in charge of accounting works: Pang Haitao
Person in charge of accounting institute: Yang Jun
II. Explanation on financial statement adjustment
1. Financial statement adjustment at the beginning of the first year when implementation of new revenue
rules and new leasing rules from 2020
√ Applicable □Not applicable
53
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
Whether to adjust the balance sheet account at the beginning of the year
√ Yes □No
(1) Consolidate balance sheet
In RMB
Item December 31, 2019 January 1, 2020 Adjustment amount
Current assets:
Monetary fund 5,499,601,030.64 5,499,601,030.64
Settlement provisions
Capital lent
Trading financial assets 7,730,268.92 7,730,268.92
Derivative financial
assets
Note receivable 1,865,165,499.50 1,865,165,499.50
Account receivable 1,387,961,981.66 1,387,961,981.66
Receivable financing
Accounts paid in
25,270,406.37 25,270,406.37
advance
Insurance receivable
Reinsurance receivables
Contract reserve of
reinsurance receivable
Other account
97,241,894.80 97,241,894.80
receivable
Including: Interest
9,510,208.63 9,510,208.63
receivable
Dividend
661,434.48 661,434.48
receivable
Buying back the sale of
financial assets
Inventories 1,460,910,189.06 1,460,910,189.06
Contractual assets
Assets held for sale
Non-current asset due
within one year
Other current assets 63,604,031.96 63,604,031.96
Total current assets 10,407,485,302.91 10,407,485,302.91
54
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
Non-current assets:
Loans and payments on
behalf
Debt investment
Other debt investment
Long-term account
receivable
Long-term equity
88,556,511.70 88,556,511.70
investment
Investment in other
equity instrument
Other non-current
45,000,000.00 45,000,000.00
financial assets
Investment real estate 96,343,760.13 96,343,760.13
Fixed assets 2,180,572,946.87 2,180,572,946.87
Construction in progress 252,494,792.31 252,494,792.31
Productive biological
asset
Oil and gas asset
Right-of-use assets
Intangible assets 933,248,463.84 933,248,463.84
Expense on Research
101,078,659.57 101,078,659.57
and Development
Goodwill
Long-term expenses to
be apportioned
Deferred income tax
97,453,178.14 97,453,178.14
asset
Other non-current asset
Total non-current asset 3,794,748,312.56 3,794,748,312.56
Total assets 14,202,233,615.47 14,202,233,615.47
Current liabilities:
Short-term loans 1,103,991,045.96 1,103,991,045.96
Loan from central bank
Capital borrowed
Trading financial 1,081,534.93 1,081,534.93
55
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
liability
Derivative financial
liability
Note payable 3,490,271,482.40 3,490,271,482.40
Account payable 2,343,116,374.58 2,343,116,374.58
Accounts received in
425,149,194.97 -425,149,194.97
advance
Contractual liability 425,149,194.97 425,149,194.97
Selling financial asset of
repurchase
Absorbing deposit and
interbank deposit
Security trading of agency
Security sales of agency
Wage payable 196,507,174.68 196,507,174.68
Taxes payable 68,558,391.66 68,558,391.66
Other account payable 689,477,603.21 689,477,603.21
Including: Interest
12,340,385.61 12,340,385.61
payable
Dividend
3,579,491.94 3,579,491.94
payable
Commission charge and
commission payable
Reinsurance payable
Liability held for sale
Non-current liabilities
1,708,193.90 1,708,193.90
due within one year
Other current liabilities
Total current liabilities 8,319,860,996.29 8,319,860,996.29
Non-current liabilities:
Insurance contract reserve
Long-term loans 401,280,000.00 401,280,000.00
Bonds payable
Including: Preferred
stock
Perpetual
capital securities
56
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
Lease liability
Long-term account
3,016,921.44 3,016,921.44
payable
Long-term wages
13,774,110.61 13,774,110.61
payable
Accrual liability 166,099,143.97 166,099,143.97
Deferred income 179,970,971.92 179,970,971.92
Deferred income tax
6,256,759.14 6,256,759.14
liabilities
Other non-current
liabilities
Total non-current liabilities 770,397,907.08 770,397,907.08
Total liabilities 9,090,258,903.37 9,090,258,903.37
Owner’s equity:
Share capital 1,044,597,881.00 1,044,597,881.00
Other equity instrument
Including: Preferred
stock
Perpetual
capital securities
Capital public reserve 2,684,366,619.10 2,684,366,619.10
Less: Inventory shares
Other comprehensive
-18,931,430.36 -18,931,430.36
income
Reasonable reserve
Surplus public reserve 410,786,860.20 410,786,860.20
Provision of general risk
Retained profit 884,127,743.42 884,127,743.42
Total owner’ s equity
attributable to parent 5,004,947,673.36 5,004,947,673.36
company
Minority interests 107,027,038.74 107,027,038.74
Total owner’ s equity 5,111,974,712.10 5,111,974,712.10
Total liabilities and owner’ s
14,202,233,615.47 14,202,233,615.47
equity
Statement of adjustment:
The Company implemented the Accounting Standards for Business Enterprise No.14- Revenue (Cai Kuai [2017]
57
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
No.22) since 1 January 2020, the “Accounts received in advance” will list as “Contractual liability”.
(2) Balance Sheet of Parent Company
In RMB
Item December 31, 2019 January 1, 2020 Adjustment amount
Current assets:
Monetary funds 4,040,632,437.18 4,040,632,437.18
Trading financial assets 5,967,556.00 5,967,556.00
Derivative financial
assets
Note receivable 1,722,707,248.74 1,722,707,248.74
Account receivable 1,158,563,389.33 1,158,563,389.33
Receivable financing
Accounts paid in
34,374,932.07 34,374,932.07
advance
Other account
41,964,639.42 41,964,639.42
receivable
Including: Interest
7,880,186.85 7,880,186.85
receivable
Dividend
661,434.48 661,434.48
receivable
Inventories 339,728,296.66 339,728,296.66
Contractual assets
Assets held for sale
Non-current assets
maturing within one year
Other current assets 11,930,690.86 11,930,690.86
Total current assets 7,355,869,190.26 7,355,869,190.26
Non-current assets:
Debt investment
Other debt investment
Long-term receivables
Long-term equity
1,698,744,114.99 1,698,744,114.99
investments
Investment in other
equity instrument
Other non-current
45,000,000.00 45,000,000.00
financial assets
58
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
Investment real estate 7,314,721.80 7,314,721.80
Fixed assets 1,138,092,635.67 1,138,092,635.67
Construction in progress 106,575,581.28 106,575,581.28
Productive biological
assets
Oil and natural gas
assets
Right-of-use assets
Intangible assets 483,887,751.05 483,887,751.05
Research and
56,295,271.74 56,295,271.74
development costs
Goodwill
Long-term deferred
expenses
Deferred income tax
77,849,317.77 77,849,317.77
assets
Other non-current assets
Total non-current assets 3,613,759,394.30 3,613,759,394.30
Total assets 10,969,628,584.56 10,969,628,584.56
Current liabilities
Short-term borrowings 1,009,757,944.82 1,009,757,944.82
Trading financial
1,016,052.00 1,016,052.00
liability
Derivative financial
liability
Notes payable 1,936,867,907.42 1,936,867,907.42
Account payable 1,497,704,307.48 1,497,704,307.48
Accounts received in
147,365,864.56 -147,365,864.56
advance
Contractual liability 147,365,864.56 147,365,864.56
Wage payable 39,633,867.87 39,633,867.87
Taxes payable 20,427,731.13 20,427,731.13
Other accounts payable 520,559,494.30 520,559,494.30
Including: Interest
13,175,235.76 13,175,235.76
payable
Dividend 3,579,491.94 3,579,491.94
59
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
payable
Liability held for sale
Non-current liabilities
due within one year
Other current liabilities
Total current liabilities 5,173,333,169.58 5,173,333,169.58
Non-current liabilities:
Long-term loans 401,280,000.00 401,280,000.00
Bonds payable
Including: preferred
stock
Perpetual
capital securities
Lease liability
Long-term account
payable
Long term employee
13,774,110.61 13,774,110.61
compensation payable
Accrued liabilities 158,742,319.21 158,742,319.21
Deferred income 67,664,815.53 67,664,815.53
Deferred income tax
742,725.60 742,725.60
liabilities
Other non-current
liabilities
Total non-current liabilities 642,203,970.95 642,203,970.95
Total liabilities 5,815,537,140.53 5,815,537,140.53
Owners’ equity:
Share capital 1,044,597,881.00 1,044,597,881.00
Other equity instrument
Including: preferred
stock
Perpetual
capital securities
Capital public reserve 2,753,017,007.10 2,753,017,007.10
Less: Inventory shares
Other comprehensive
income
60
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
Special reserve
Surplus reserve 410,568,694.52 410,568,694.52
Retained profit 945,907,861.41 945,907,861.41
Total owner’s equity 5,154,091,444.03 5,154,091,444.03
Total liabilities and owner’s
10,969,628,584.56 10,969,628,584.56
equity
Statement of adjustment
The Company implemented the Accounting Standards for Business Enterprise No.14- Revenue (Cai Kuai [2017]
No.22) since 1 January 2020, the “Accounts received in advance” will list as “Contractual liability”.
2. Retrospective adjustment of the comparative data for initial implementation of new revenue rules and
new leasing rules from 2020
□Applicable √Not applicable
III. Audit report
Whether the 3rd quarterly report has been audited or not
□Yes √ No
The 3rd quarterly report of the Company has not been audited.
Changhong Meiling Co., Ltd.
Chairman: Wu Dinggang
20 October 2020
61
