长虹美菱股份有限公司
CHANGHONG MEILING CO., LTD.
二〇二〇年年度报告
Annual Report 2020
CHANGHONG MEILING CO.,LTD. Annual Report 2020
Section I. Important Notice, Contents and Interpretation
Board of Directors, Supervisory Committee, all directors, supervisors and senior executives of Changhong
Meiling Co., Ltd. (hereinafter referred to as the Company) hereby confirm that there are no any fictitious
statements, misleading statements, or important omissions carried in this report, and shall take all responsibilities,
individual and/or joint, for the reality, accuracy and completion of the whole contents.
Mr. Wu Dinggang, Chairman of the Company, Mr. Pang Haitao, person in charge of accounting work and Mr.
Yang Jun, person in charge of accounting organ (accountant in charge) hereby confirm that the Financial Report of
2020 Annual Report is authentic, accurate and complete.
The Company did not have directors, supervisors and senior executives of the Company could not guarantee the
reality, accuracy and completion of the whole contents or have objections.
All the directors attended the board meeting to deliberating the Report on site and by communication.
Modified audit opinions notes
□ Applicable √ Not applicable
Shine Wing Certified Public Accountants Co., Ltd. (LLP) issued standard unqualified Auditors‘ Report for the
Company‘s Financial Report of 2020.
Major defects in internal control
□ Applicable √Not applicable
The Company had no major defects in internal control in the reporting period.
Risk warning of concerning the forward-looking statements with future planning involved in annual report
√ Applicable □Not applicable
Concerning the forward-looking statements with future planning involved in the Report, they do not constitute a
substantial commitment for investors, investors and the person concerned should maintain adequate risk
awareness, furthermore, differences between the plans, forecast and commitments should be comprehended.
Investors are advised to exercise caution of investment risks.
Investors are advised to read the full text of annual report, and pay particular attention to the following risk
factors:
More details about the possible risks and countermeasures in the operation of the Company are described in the
report ―IX. Prospects for the future development of the company‖ of ―Section IV. Analysis and discussion of the
operation‖, investors are advised to read the relevant content.
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CHANGHONG MEILING CO.,LTD. Annual Report 2020
Securities Times, China Securities Journal, Hong Kong Commercial Daily and Juchao Website
(www.cninfo.com.cn) are the media for information disclosure for year of 2021 that appointed by the Company.
All public information under the name of the Company disclosed on the above said media and website shall
prevail, and investors are advised to exercise caution.
Does the Company need to comply with disclosure requirements of the special industry: no
Profit distribution pre-plan or capitalizing of common reserves pre-plan deliberated by the Board in the reporting
period
√ Applicable □ Not applicable
The profit distribution plan for year of 2020, that deliberated and approved by 6th session of the 10th BOD was:
take the total shares (on the registration date when implement the equity distribution plan for year of 2020) after
deduct the B shares that have been bough-back as the base, distributed 0.5 Yuan (tax included) bonus in cash for
every 10-share hold by all shareholders, no share bonus issued and no capitalizing of common reserves carried
out.
The company is currently implementing the repurchase of domestically listed foreign shares (B shares). As of the
disclosure date of this report, the Company has repurchased 8,388,888 B shares of the company through a
centralized bidding transaction through the special account for share repurchase securities.
Directors, supervisors and senior executives of the Company respectively signed a Written Confirmation Opinions
for 2020 Annual Report.
Supervisory Committee of the Company formed Written Examination Opinions for 2020 Annual Report.
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CHANGHONG MEILING CO.,LTD. Annual Report 2020
Contents
Section I. Important Notice, Contents and Interpretation ................................................................................... 1
Section II Company Profile and Main Financial Indexes .................................................................................... 5
Section III. Summary of Company Business ....................................................................................................... 12
Section IV. Discussion and Analysis of the Operation ........................................................................................ 19
Section V. Important Events ................................................................................................................................. 59
Section VI. Changes in shares and particular about shareholders.................................................................. 149
Section VII. Preferred Stock ............................................................................................................................... 157
Section VIII. Convertible Bonds......................................................................................................................... 158
Section IX. Particular about Directors, Supervisors, Senior Executives and Employees ............................. 159
Section X. Corporate Governance...................................................................................................................... 176
Section XI. Corporate Bond................................................................................................................................ 194
Section XIII. Documents available for Reference ............................................................................................. 395
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CHANGHONG MEILING CO.,LTD. Annual Report 2020
Interpretation
Items Refers to Contents
Company, The Company, Changhong Meiling
Refers to CHANGHONG MEILING CO.,LTD.
or Meiling Electric
Sichuan Changhong or controlling shareholder Refers to Sichuan Changhong Electric Co., Ltd.
Changhong Group Refers to Sichuan Changhong Electronics Holding Group Co., Ltd.
Hong Kong Changhong Refers to CHANGHONG (HK) TRADING LIMITED
Meiling Group Refers to Hefei Meiling Group Holdings Limited
Industry Investment Group Refers to Hefei Industry Investment Holding (Group) Co., Ltd.
Shine Wing Refers to Shine Wing Certified Public Accountants (LLP)
Changhong Air-conditioner Refers to Sichuan Changhong Air-conditioner Co., Ltd.
Zhongke Meiling Refers to Zhongke Meiling Cryogenic Technology Co., Ltd.
Jiangxi Meiling Refers to Jiangxi Meiling Electric Appliance Co., Ltd.
Ridian Keji Refers to Changhong Meiling Ridian Technology Co., Ltd.
Zhongshan Changhong Refers to Zhongshan Changhong Electric Co., Ltd.
Changhong Huayi Refers to Changhong Huayi Compressor Co., Ltd.
Zhiyijia Company Refers to Sichuan Zhiyijia Network Technology Co., Ltd.
CSRC Refers to China Securities Regulatory Commission
China Securities Regulatory Commission, Anhui Province Securities
Anhui Securities Bureau Refers to
Regulatory Bureau
SSE Refers to Shenzhen Stock Exchange
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CHANGHONG MEILING CO.,LTD. Annual Report 2020
Section II Company Profile and Main Financial Indexes
I. Company information
Short form of the stock Changhong Meiling, Hongmeiling B Stock code 000521, 200521
Short form of the Stock after
N/A
changed (if applicable)
Stock exchange for listing Shenzhen Stock Exchange
Name of the Company (in Chinese) 长虹美菱股份有限公司
Short form of the Company (in
长虹美菱
Chinese)
Foreign name of the Company (if
CHANGHONG MEILING CO.,LTD.
applicable)
Abbr. of English name of the
CHML
Company (if applicable)
Legal representative Wu Dinggang
Registrations add. No. 2163, Lianhua Road, Economic and Technology Development Zone, Hefei
Code for registrations add 230601
Offices add. No. 2163, Lianhua Road, Economic and Technology Development Zone, Hefei
Codes for office add. 230601
Website http://www.meiling.com
E-mail info@meiling.com
II. Person/Way to contact
Secretary of the Board Rep. of security affairs
Name Li Xia Zhu Wenjie
No. 2163, Lianhua Road, Economic and Technology No. 2163, Lianhua Road, Economic and
Contact add.
Development Zone, Hefei Technology Development Zone, Hefei
Tel. 0551-62219021 0551-62219021
Fax. 0551-62219021 0551-62219021
e-mail lixia@meiling.com wenjie.zhu@meiling.com
III. Information disclosure and preparation place
Newspaper appointed for information disclosure Securities Times, China Securities Journal, Hong Kong Commercial
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CHANGHONG MEILING CO.,LTD. Annual Report 2020
Daily
Website for annual report publish appointed by CSRC Juchao website: http://www.cninfo.com.cn
Room of secretary of the Board, 2/F , administrative center, Office
Preparation place for annual report
building of the Company
IV. Registration changes of the Company
Organization code Uniform social credit code: 9134000014918555XK
Changes of main business since listing (if applicable) No changes
1. In October 1993, after initial listing, controlling shareholder of the Company-- Hefei Meiling Industrial
Corp. (renamed as Hefei Meiling Group Co., dated 23 May 1994), executing controlling rights of the
Company and management right of the state-owned assets on behalf of Hefei State-owned Assets
Management Office, named at that time;
2. From November 1997 to May 2003, controlling shareholder of the Company was Hefei Meiling Group
Holding Co., Ltd. (established base on former Meiling Group Co.,, ―Meiling Group‖ for short), an enterprise
solely owned by the State; mainly operating the state-owned capital in authorized from State-owned Assets
Management Commission of Hefei City, ensuring the maintenance and appreciation of state-owned assets;
3. On 29 May 2003, Meiling Group entered into ―Equity Transfer Agreement‖ with Shunde GreenKel
Enterprise Development Co., ltd. (―GreenKel‖), the 82,852,683 state-owned shares held by the Company
was transfer to GreenKel. After transferring, GreenKel comes to the first largest shareholder of the
Company.
4. According to the spirit of ―Bulletin of Treatment Opinions on GreenKel Company purchasing
State-owned Assets Shares of Listed Company‖ (GZFCQ[2006] No.: 44) jointly issued from SASAC and
Ministry of Finance in April 2006, Meiling Group took back the Meiling Electric 82,852,683 shares from
Previous changes for
GreenKel by procedures, which has been transferred. In September 2006, relevant equity transfer agreement
controlling
signed between the Meiling Group and GreenKel is invalid, which was confirmed by the ―Award‖ ((2006)
shareholders (if
HZZ No.: 104) issued from arbitration commission of Hefei; the state-owned legal person‘s 82,852,683
applicable)
shares, held by GreenKel, should return to Meiling Electric, and relevant equity consideration will pay to
GreenKel by Meiling Group . On 29 December 2006, the 82,852,683 shares of Meiling Electric were
transfer to Meiling Group by GreenKel, and Meiling Group becomes the controlling shareholder of Meiling
Electric again.
5. On 18 May 2006 and 11 January 2007, Meiling Group entered into ―Equity Transfer Agreement of
Meiling Electric‖ and ―Supplementary Agreement of Equity Transfer of Meiling Electric‖ respectively with
Sichuan Changhong and Changhong Group, among the 123,396,375 shares held by Meiling Group,
82,852,683 shares were transferred respectively to Sichuan Changhong and Changhong Group according to
the transfer way regulated in agreement; of this transferring, 45,000,000 shares (10.88% of total share
capital of the Company) were transferred to Sichuan Changhong, the first largest shareholder of the
Company while 37,852,683 shares (9.15% of total share capital of the Company) were transferred to
Changhong Group, the third largest shareholder of the Company.
6. On 29 October 2008, Changhong Group and Sichuan Changhong entered into ―Equity Transfer
Agreement of Hefei Meiling Co., Ltd.‖, the 32,078,846 restricted circulations A shares of Meiling Electric
held by Changhong Group were transferred by agreement to Sichuan Changhong. On 23 December 2008,
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CHANGHONG MEILING CO.,LTD. Annual Report 2020
the aforesaid equity transfer was approved by ―Reply on Matters of Equity held by State-owned
Shareholders of Hefei Meiling Co., Ltd.‖ (GZCQ(2008) No.: 1413) from SASAC; on 21 January 2009, the
aforesaid transfer was registered for ownership transfer in Shenzhen Branch of China Securities Depository
and Clearing Corporation Limited. With this, the first majority shareholder of the Company comes to
Sichuan Changhong.
7. From 12 November 2018 to 25 February 2019, Sichuan Changhong and its concerted action Hong Kong
Changhong totally buys 16,231,024 shares of the Company through the secondary market by bidding
(including A-stock of 13,751,756 shares and B-stock of 2,479,268 shares), a 1.55% in total share capital of
the Company. After stake enlarge, Sichuan Changhong and its concerted action Hong Kong
Changhong holds 281,832,434 shares of the Company in total, a 26.98% of the total share capital of the
Company; of which, Sichuan Changhong directly holds 248,457,724 A-share of the Company, a
23.79% in total share capital of the Company while Hong Kong Changhong holds circulation B-share of the
Company amounting as 33,374,710 shares, a 3.19% in total share capital of the Company.
8. Ended as 31 December 2020, Sichuan Changhong and its concerted action Hong Kong Changhong totally
holds 281,832,434 shares of the Company, a 26.98% in total share capital of the Company; Sichuan
Changhong directly holds 248,457,724 A-share of the Company, a 23.79% in total share capital of the
Company while Hong Kong Changhong holds circulation B-share of the Company amounting as 33,374,710
shares, a 3.19% in total share capital of the Company.
V. Other relevant information
(1) CPA engaged by the Company
Name of CPA Shine Wing Certified Public Accountants (LLP)
8/F, Block A, Fu Hua Mansion No.8 Chao Yang Men Bei da jie, Dong Cheng District, Beijing,
Offices add. for CPA
P.R.C
Signing Accountants Li Xifu, Wang Xiaodong
(2) Sponsor engaged by the Company for performing continuous supervision duties in reporting period
□ Applicable √ Not applicable
(3) Financial consultant engaged by the Company for performing continuous supervision duties in
reporting period
□ Applicable √ Not applicable
VI. Main accounting data and financial indexes
Whether it has retroactive adjustment or re-statement on previous accounting data
□ Yes √ No
2020 2019 Changes over last year 2018
Operating income (RMB) 15,388,050,229.67 16,553,252,894.93 -7.04% 17,490,174,950.01
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CHANGHONG MEILING CO.,LTD. Annual Report 2020
Net profit attributable to
shareholders of the listed company -85,565,716.91 56,441,479.14 -251.60% 38,658,256.97
(RMB)
Net profit attributable to
shareholders of the listed company
after deducting non-recurring gains -277,816,055.91 -50,454,661.39 -450.63% -3,142,791.01
and losses (RMB)
Net cash flow arising from
operating activities (RMB) 1,403,516,222.46 1,285,003,985.04 9.22% -220,560,615.36
Basic earnings per share
(RMB/Share) -0.0819 0.0540 -251.67% 0.0370
Diluted earnings per share
(RMB/Share) -0.0819 0.0540 -251.67% 0.0370
2.86 percentage
Weighted average ROE -1.73% 1.13% 0.77%
points down
Changes over end of
Year end of 2020 Year end of 2019 Year end of 2018
last year
Total assets (RMB) 16,103,355,454.46 14,202,233,615.47 13.39% 15,561,810,184.54
Net assets attributable to
shareholder of listed company 4,854,173,682.43 5,004,947,673.36 -3.01% 5,015,730,486.57
(RMB)
The cause of the accounting policy change and accounting error correction
□ Applicable √ Not applicable
The lower one of net profit before and after deducting the non-recurring gains/losses in the last three fiscal years
is negative, and the audit report of last year shows that the ability to continue operating is uncertain
□Yes √ No
The lower one of net profit before and after deducting the non-recurring gains/losses is negative
√Yes □No
Item 2020 2019 Note
Operating income (RMB) 15,388,050,229.67 16,553,252,894.93 --
It mainly refers to the income from house rental,
Amount deducted from
135,186,516.29 116,109,621.66 waste sales, labor services, warehousing services
operating income (RMB)
and maintenance services in the current period.
Operating income after
15,252,863,713.38 16,437,143,273.27 --
deduction (RMB)
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CHANGHONG MEILING CO.,LTD. Annual Report 2020
VII. Accounting data difference under domestic and foreign accounting standards
(1) Difference of the net profit and net assets disclosed in financial report, under both IAS (International
Accounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable √ Not applicable
The Company has no difference of the net profit and net assets disclosed in financial report, under both IAS
(International Accounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles) in reporting
period.
(2) Difference of the net profit and net assets disclosed in financial report, under both foreign accounting rules and
Chinese GAAP (Generally Accepted Accounting Principles)
√ Applicable □ Not applicable
In RMB
Net profit attributable to shareholders of listed Net assets attributable to shareholders of listed
company company
Current period Previous period Ending amount Opening amount
Chinese GAAP -85,565,716.91 56,441,479.14 4,854,173,682.43 5,004,947,673.36
Items and amount adjusted by foreign accounting rules
Foreign accounting rules -85,565,716.91 56,441,479.14 4,854,173,682.43 5,004,947,673.36
The Company had no difference of the net profit or net assets disclosed in financial report, under either foreign
accounting rules or Chinese GAAP (Generally Accepted Accounting Principles) in the period.
(3) Reasons for the differences of accounting data under accounting rules in and out of China
√ Applicable □ Not applicable
The ―Notice of Relevant Issues of Audit for Company with Domestically Foreign Shares Offering‖ was issued
from CSRC dated 12 September 2007, since the day issuing, cancel the previous ―dual audit‖ requirement for
companies who offering domestically listed foreign shares (B-share enterprise) while engaging securities practice
qualification CPA for auditing. The Company did not compile financial report under foreign accounting rules
since 2007, the financial report of the Company is complying on the ―Accounting Standard for Business
Enterprise‖ in China, and therefore, there are no differences of accounting data under accounting rules in and out
of China at period-end.
VIII. Quarterly main financial index
In RMB
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CHANGHONG MEILING CO.,LTD. Annual Report 2020
Q1 Q2 Q3 Q4
Operating income 2,281,578,242.02 4,514,282,494.97 4,560,882,229.12 4,031,307,263.56
Net profit attributable to shareholders
-270,008,124.67 59,877,543.74 86,575,054.56 37,989,809.46
of the listed company
Net profit attributable to shareholders
of the listed company after deducting -282,956,643.92 25,821,980.56 16,310,383.26 -36,991,775.81
non-recurring gains and losses
Net cash flow arising from operating
-1,003,451,132.76 615,346,174.35 109,494,010.35 1,682,127,170.52
activities
Whether there are significant differences between the above-mentioned financial index or its total number and the
relevant financial index disclosed in the company‘s quarterly report and semi-annual report
□Yes √ No
IX. Items and amounts of non-recurring profit (gains)/losses
√ Applicable □ Not applicable
In RMB
Item 2020 2019 2018 Note
Found more in
―Income from assets
Gains/losses from the disposal of non-current asset
disposal‖,
(including the write-off that accrued for impairment of -2,111,295.55 -9,537,945.52 787,721.32
―non-operation
assets)
income &
expenditure‖
Governmental subsidy reckoned into current gains/losses Found more in ―Other
(not including the subsidy enjoyed in quota or ration income‖,
99,043,859.77 103,813,820.02 90,401,997.63
according to national standards, which are closely relevant to ―Non-operation
enterprise‘s business) income‖
Found more in
Gains/losses arising from the contingencies unrelated to the
- -13,050,649.33 ―Non-operation
normal operation of the Company
expenditure‖
Losses/gains from changes of fair values occurred in holding
trading financial assets, derivative financial assets, trading
financial liabilities and derivative financial liabilities, and Found more in
investment income obtaining from the disposal of trading ―Income of fair value
123,242,542.42 27,685,917.00 -18,928,688.87
financial assets, derivative financial assets, trading financial changes‖, ―Investment
liability, derivative financial liability and other debt income‖
investment, excluded effective hedging business relevant
with normal operations of the Company
Reversal of the account receivable and contract assets ‖Found more in
5,061,635.85 1,936,952.67 2,543,553.45
depreciation reserves subject to separate impairment test ―Account
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CHANGHONG MEILING CO.,LTD. Annual Report 2020
receivable/other
account receivable‖
‖Found more in
Other non-operating income and expenses other than the ―Non-operation
2,434,283.11 1,070,165.28 -2,614,761.68
above income &
expenditure‖
Less: impact on income tax 34,083,593.36 15,170,286.77 16,236,806.66
Impact on minority shareholders‘ equity (post-tax) 1,337,093.24 2,902,482.15 1,101,317.88
Total 192,250,339.00 106,896,140.53 41,801,047.98 --
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.
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CHANGHONG MEILING CO.,LTD. Annual Report 2020
Section III. Summary of Company Business
I. Main businesses of the company engaged in during the Period
(i) Main businesses of the Company
The Company is one of China's major electric appliance manufacturers, possesses four major domestic
manufacturing bases in Hefei, Mianyang, Jingdezhen and Zhongshan, and two overseas manufacturing bases in
Indonesia and Pakistan. Currently, we have completed the industry layout of white electricity basically, covering
the full product line including refrigerator, washing machine, air conditioner, kitchen and bath, small household
appliances and others, at the same time, the Company enters the new industrial fields as bio-medical and with
certain achievements made.
Over the past 30 years, the Company has always been adhering to the "independent innovation, created in China",
and always focus on refrigeration industry without stop, elaborately building the core competitiveness of
enterprises by technological innovation and product innovation. Relying on the cutting-edge R&D team and
advanced technology, Meiling continue to achieve breakthrough results in the variable frequency, intelligence,
refreshment, thin-wall, odourless, energy-saving, forced air cooling, deep cooling and other fields.
The company has set up the first RoHS public testing center in Anhui Province, the national enterprise technology
center, the national industrial design center, and the 5G industrial internet innovation application laboratory. In
recent years, the Company has successively awarded several national honorary titles as the ―Smart Refrigerator
Intelligent Manufacturing Pilot Demonstration Project‖, the ―National Green Factory‖ and the ―National Industrial
Design Center‖ etc.
At the same time, many products of Meiling have repeatedly won a number of domestic and international
innovation awards, continuously demonstrating the capabilities and strength of Meiling's intelligent manufacturing
and Meiling brand intelligent innovation technology. In the 2020 China Refrigerator Industry Summit Forum,
Meiling Refrigerator, with its leading fresh-keeping technology and excellent quality, "M Fresh" Liulizi
415WQ3S won the "Long-lasting Fresh-keeping Star", and BCD-432WPU9CX won the "Outstanding Channel
Performance Product" Award. In the 16th China Household Appliances Innovation Achievement Appraisal,
Meiling‘s ―M Fresh‖ full-curved glass BCD-680WQ3S, refrigerator ten-minute rapid odor cleaning technology
and very thin intelligent front loading washing machine MG100-14686BHAIS products all won the innovation
results award, and the moisturizing control method and application of the air-cooled water tank won the China
Patent Excellence Award. In addition, with its outstanding contribution to social welfare, the company won the
"Special Charity Contribution Award" of China Refrigerator Industry Summit Forum and the honor of Social
Charity Demonstration Enterprise of China Household Electrical Appliances Association in 2020.
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CHANGHONG MEILING CO.,LTD. Annual Report 2020
In recent years, driven by the industry transformation and upgrades and consumption upgrades, the Company has
adhered to the strategy of smart and variable frequency products, promoted the Company‘s products to transform
and upgrade to become intelligent and high-end and comprehensively enhanced the competitiveness of products in
the industry by grasping the opportunities of refreshment, thin-wall, odourless, air cooling and energy efficiency
upgrades and effectively resolving the pain points of customers. Under the guidance of the ―intelligent‖ strategy,
in recent year, the Company has released and listed a number of CHiQ series of smart refrigerators and
air-conditioning products, ―M-Fresh‖ refrigerators and ―M-Fresh‖ comprehensive thin series products, Meiling
always leads the trend of the industry by solving the pain points of users effectively. In June 2020, Meiling's very
clean series of refrigerators, which adopted Meiling's original MNC+ odor purification technology, made its world
debut, representing the company's third differentiated business card after Meiling Fresh and Meiling Thin-Meiling
odourless. In April 2020, the new air conditioner "Xiongmaolan" was released, its intelligent cleaning and precise
temperature control further matched the use pain points of consumers. In December 2020, two new products,
namely, dust-free air conditioner and full-DC inverter home multi-split air conditioner were launched. In July
2020, Meiling‘s ―very thin‖ front loading washing machine made its world debut, which not only refreshed the
ultra-thin record of 10kg front loading washing machine, but also showed that from the full thin refrigerators to
very thin washing machines, Meiling has been focusing on user needs and accelerating to realize the integrated
market layout of refrigerators, air conditioners and washing machines, and finally realized the implementation of
Meiling's quality, taste and brand, and injected new vitality into the high-end consumer market.
Facing the future, the Company will further improve the home internet layout, accelerate the intelligentization of
home appliances, form a dual-growth engine of ―hardware + services‖, drive the transformation and upgrading of
the Company‘s profitability model, investigate the new value-added service models for home appliance
enterprises, meet new competition pattern in the industry, and achieve its own sustainable and stable development
under the guidance of the core values of ―professionalism and shared development‖. Meanwhile, based on the
―Smart Home Eco-system Project‖ and the existing products, the company will enhance the R&D, manufacturing,
sales and cooperative capabilities of integrated white goods so as to provide users with a complete set of smart
white goods system solutions.
In reporting period, main income of the Company coming from refrigerator (freezer), air conditioner, washing
machine, small home appliances and kitchen & toilet products etc., total amounting to 13,906.9008 million Yuan,
a 90.37% of the operating income.
(2) Conditions of the industry the company involved
1.Refrigerator industry
All View Cloud (AVC) pushed total data showing that in 2020 the retail sales of China's home appliance market
decreased by 11.3% on a year-on-year basis, in sharp contrast to that, the refrigerator market retail sales only
decreased by 1.4% on a year-on-year basis. In addition, the global refrigerator production capacity has
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CHANGHONG MEILING CO.,LTD. Annual Report 2020
significantly increased its dependence on the Chinese market. According to customs data, the export volume of
refrigerators in 2020 increased by 35.6% on a year-on-year basis. As the core home appliance for household food
storage and management, the demand for refrigerators is more rigid. In a complex environment, the resistance
stability of the refrigerator industry is relatively strong.
2.Air conditioning industry
The air-conditioning industry has entered the stage of stock competition from the incremental market. The
downturn in the real estate market and the increase in the number of air-conditioning owned by 100 households
have increased year by year, resulting in a decrease in new demand. Under the influence of the epidemic, part of
the renewal demand has been temporarily shelved, while the long-term price war has made small and
medium-sized brands difficult to survive, and the air-conditioning industry in a downward crisis is in trouble.
According to the All View Cloud (AVC) push data, the China‘s retail volume of air conditioning market in 2020
was 51.34 million units, a decrease of 14.8% on a year-on-year basis, retail sales amounted as 154.5 billion Yuan,
decreased 21.9% from a year earlier.
3.Washing machine industry
According to the All View Cloud (AVC) omnichannel data, the retail sales of the washing machine market in
China has 7.14 billion yuan for year of 2020, a y-o-y decline of 6.2%, retail volume was 36.9 million units, 3.6%
drops from a year earlier. The overall retail pace was in a downturn in the first half of the year and recovered in
the second half of the year, the online recovery was obvious and the offline recovery was slow. In terms of
products, in addition to the trend of large-capacity stacking washing and drying integrated machines, brand
owners have also been striving to find differentiated selling points and improve product premium capabilities.
With healthy washing machines as the core, washing machines with intelligent detergent feeding and washing and
care labels, silent washing machines, good-looking washing machines, and ultra-thin and embeddable washing
machines have become hot spots for market development.
II. Major changes in main assets
(1) Major changes in main assets
Major assets Note of major changes
Equity assets Joint venture has a deficit in the Period and declare the payment of cash dividends
Fixed assets Transferred from construction in progress increased in the period
Intangible assets No major changes
Construction in progress Construction in progress transferred to fixed assets in the period
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CHANGHONG MEILING CO.,LTD. Annual Report 2020
(2) Main overseas assets
√ Applicable □ Not applicable
Whether
Reaso
Foreign assets exist
n for Operat
Control measure to ensure the security of accounted for significant
Content of assets the Asset size Location ion Income (RMB)
assets net assets of impairme
format mode
the Company nt risk
ion
(Y/N)
Details of risks control measures have
been disclosed by the Company by way of
Invest
announcement on appointed media (No.
ment
60% equity of Changhong US$ 7.803 2011-028, No. 2011-032, No. 2014-023,
establi Pakistan Sales 0.01% N
Ruba Trading Company million No. 2014-026, No. 2016-027, No. -11,275,321.57
shmen
2016-032, No. 2017-053 and No.
t
2017-059) on 28 May 2011, 19 April
2014, 25 March 2016 and 10 August 2017
Details of risks control measures have
Invest been disclosed by the Company by way of
40% equity of Changhong ment announcement on appointed media (No.
US$ 6.9761 Manuf
Ruba Electric establi Pakistan 2011-028, No. 2011-032, No. 2014-023, -194,554.26 -0.12% N
million acture
Company(Private)Ltd. shmen No. 2014-026, No. 2017-053 and No.
t 2017-059) on 28 May 2011, 19 April
2014 and 10 August 2017
Invest Details of risks control measures have
100% equity of KELAPA
ment been disclosed by the Company by way of
CHANGHONG US$ 6 GADING,
establi Sales announcement on appointed media (No. 0.48% N
MEILING ELECTRIC million JKT, 1,059,456.14
shmen 2016-027 and No. 2016-033) on 25
INDONESIA. PT Indonesia
t March 2016
Invest
Details of risks control measures have
100% equity of ment
US$ 1 Philippine been disclosed by the Company by way of
CH-Meiling International establi sales 0.11% N
million s announcement on appointed media (No. -1,169,089.69
(Philippines) Inc. shmen
2019-083) on 7 December 2019.
t
Other notes N/A
III. Core Competitiveness Analysis
(1) Brand capacity
The Company is one of the famous home appliances manufacturers in China, owns several product lines such as
refrigerator, freezing box, air conditioner, washing machine, small household appliances and biomedical etc.
―Meiling‖ brand is listed as one of the most valuable brands in China. In recent years, the Company has create the
15
CHANGHONG MEILING CO.,LTD. Annual Report 2020
competitiveness of the brand by continuously reshaping its brand image, innovating core technology and
developing high-end intelligent products.
In terms of reshaping brand image, in order to enhance the brand image and further expand the market influence,
the Company repositioning the brand. In October 2015, the Company completely update the LOGO, and
launching the new brand proposition of ―Meiling, let the good comes‖. Along with the release of new LOGO,
Meiling will also implement a brand strategy of "Good Trilogy", including the direct sensory experience of
―experience the good", the spirit soul enjoyment of ―enjoy the good‖, and the lifestyle faith of ―believe in the
good‖. In 2020, the Company hand in hand with the national badminton team, accelerate the brand image refresh.
In terms of continuous innovation of core technologies, on the one hand, the company continuously promoted the
innovation of intelligent, frequency conversion, fresh-keeping and odourless technologies to maintain the leading
position in the industry in order to meet the needs of industry and market development; on the other hand, with the
help of consumption upgrades, in order to meet the personalized differentiation and diversified needs of
consumers. In terms of refrigerator products, the independent research and development of core technologies such
as water molecule activation preservation technology, comprehensive thin GLS integration technology, and
MCN+ clean taste preservation technology have led the refrigerator industry to return to the home field of
preservation and fully enter the era of thin and long-lasting clean taste. In terms of washing machine products,
through the development of the three black technologies of the inner cylinder cone expansion technology, the
oblique angle stabilization technology, and the cloud disk condensation technology, the "thin", "large" and
"simple" industry business cards for washing machines have been created. Regarding air-conditioning products,
we have been adhering to the product concept of "good sleep + good air", focusing on quality, experience, and
health for product upgrades. Strictly control quality in terms of comfort and reliability indicators, create a brand
experience of ―extremely quiet, extremely economical, and extremely intelligent‖ for air conditioners, and carry
out layout around the three core functions of ―fresh air, self-cleaning, and dust-free‖ product portfolio.
In terms of high-end intelligent product development, the company promoted product innovation through
continuous technological innovation. In recent years, the company has successively released CHiQ intelligent
series products, ―M-Fresh‖ refrigerators, ―M-Fresh‖ full-thin series products, ―very-clean‖ series of refrigerator
products, ―very-thin‖ series of washing machine, voiceprint cabinet, dust-free separated and sleep separated air
conditioner etc, created three brand business cards, i.e. ―Meiling Fresh‖ and ―Meiling Thin‖, and ―Meiling Clean‖
through the introduction of the aforementioned high-end intelligent products, which not only met market demand
in a timely manner, but also enriched and enhanced the brand image.
Promoting the remodeling of brand ability through the continuous upgrading of products, Meiling will realize a
young, international and professional brand image. Through gradual construction of the ideas of Wonderful Start
Point, Wonderful Life Circle and Wonderful Ecology Circle, Meiling has become a people-oriented artist
specializing in white appliances, a smarter scientific expert and a more reliable house keeper.
(2) Product capacity
In more than 30 years, the Company always focus on the refrigeration industry, has developed a variety of
16
CHANGHONG MEILING CO.,LTD. Annual Report 2020
different types of refrigerator products, including three serial products as ―CHiQ, Athena and MELNG 美菱‖. It
mainly includes the "Very Clean" series fresh-keeping refrigerators equipped with odor purification technology,
the BCD-502W series refrigerators extending from comprehensive thin products, the CHiQ series high-end
intelligent refrigerators, the 400L multi-door refrigerators (BCD-406W, BCD-415W, BCD-425W) series products,
the limit cost BCD-632W side-by-side combination series refrigerators, the 0.1 degree double precision inverter
refrigerators, new European standard energy efficiency upgrade products, North American air-cooled products,
vertical display cabinets, BC/BD-100DT product freezer with low-cost color plate box, 10 kg impeller-type series
washing machines, XC-618L smart blood refrigerator, air conditioner "all dust-free" Q6C on-hook products,
voiceprint cabinets and sleep on-hooks, etc. Especially the "Very Clean" series clean odor refrigerators released by
the company apply multi-metal oxide catalytic technology and use a catalyst made of a special process to
efficiently catalyze the air to produce active oxygen, which can quickly remove unpleasant odor and kill bacteria.
The "Very Thin" drum series washing machine is developed with ultra-thin platform technology, with three core
technologies including inner drum diameter, drying and condensation, and slightly inclined drum, its depth
dimension is reduced by 20% under the condition that the width of the whole machine remains unchanged, and
the main performance index has reached the advanced level of domestic and foreign drum washing machines.
"Dust-free" air-conditioning products adopt the industry's first fully enclosed dust-free cabin technology to
achieve a "zero gap" full closure of the air inlet, there is nowhere for dust to enter or hide, perfectly realizing the
completely dust-free innovative black technology for power on and power off .
The Company owned advanced development and quality assurance systems, passed management system
certification of ISO9001, ISO14001 and ISO45001. Product quality has been quality assurance and product
performance is reliable. At the same time, the company has authoritative certifications including ―national-level
technology center‖, ‖national-level industrial design center‖, ―national-level intellectual property demonstration
enterprise‖ as strong guarantees. In terms of technical research, it is committed to applying basic technology
research and industrialization transfer, and has established a technical strategic plan with ―intelligence, frequency
conversion, simulation‖ as core technologies, and ―energy saving, fresh keeping, and new materials‖ as key
technologies, annual technical research project achievements conversion rate reached 85% above. In terms of
product development, based on the technological research results and consumption upgrade requirements, updated
the annual product planning and development outline, increasingly upgraded the product structure, continued to
increase the development of mid-to-high-end products with characteristic of thin-wall, air-cooling, large-volume,
frequency conversion, intelligence, simulation, smart cleaning, sterilization, dust removal, silent and developed
competitive core products. At the strategic level of the company, continued to adhere to the core idea of
―intelligent strategy, productism‖, and promoted the company's product transformation, technological innovation,
and industry leadership by advancing the subsequent research and development, promotion and technical update
of intelligent and frequency conversion products. In addition, the company shall continue to improve the home
appliance product line, lay out multiple product businesses such as air conditioner, washing machines, kitchen and
bath products, small home appliances, biomedical, and built a comprehensive home appliance business.
(3) Operation capacity
17
CHANGHONG MEILING CO.,LTD. Annual Report 2020
The Company continues to conducted benchmark management to improve its basic management level. Meanwhile,
constantly improve the internal management ability by continuously improve the upgrading in aspect of efficiency
of personnel, money and materials. A performance review and sharing system has been established with clear
target and quantity index based on performance and layered incentive sharing system, thus to inspire the internal
production capacity. Under the mainline of value chain management, the Company continued to carry out value
creation and improve its competitiveness. Its ability to prevent risks has been also strengthened through
continuous improvement of internal control system.
(4) Marketing ability
The company has established a relatively complete sales network and service system to accelerate marketing
transformation and achieve the marketing transformation from product line-oriented sales management to
channel- and user-oriented business services, from single-category marketing to full-category marketing. During
the reporting period, used smart trading platforms to effectively improve operating efficiency, reduce costs, and
accumulate strength for subsequent development. In overseas markets, the company increased the investments in
overseas marketing agencies, research and development bases, production bases, etc., cooperated with
internationally renowned household appliance brands and distributors, continued to optimize the customer
structure and enhance the product structure, actively explored overseas markets, and exported products to more
than 130 countries and regions.
18
CHANGHONG MEILING CO.,LTD. Annual Report 2020
Section IV. Discussion and Analysis of the Operation
I. Introduction
In 2020, in the face of multiple severe impacts such as the sudden COVID-19 epidemic, the deep recession of the
world economy, trade frictions, and the rise in bulk materials, the home appliance industry where the company is
located has encountered unprecedented challenges, especially the impact on offline channels. According to AVC
data, the offline retail sales of the refrigerator industry fell by 13%, air conditioners fell by 32%, washing
machines fell by 17%, and the overall market in the industry was sluggish. In 2020, the internal and external
environment were beset with difficulties. In this context, affected by factors such as the improvement of
consumers' health demands and the more rational consumption behaviors, enterprises were forced to accelerate the
adjustment of product structure, accelerate the improvement of product quality and service capabilities, and
accelerate the innovation of channels.
During the reporting period, the company took "one side and two points" as its guiding ideology, that is, using
commercial inventory as the core to drive supply chain, manufacturing, logistics, etc., so as to improve overall
efficiency; through competition against benchmarking, output online and offline competition strategies and
product strategies that highly match the market, and implemented the annual business policy of "product
leadership, marketing transformation, efficiency breakthrough, team activation". Facing the impact of the
epidemic, the company‘s business units took the initiative and turned crises into opportunities, focusing on the
effective implementation of existing orders, taking advantage of opportunities or policies to grab new orders, and
ensured the safety of supply chain and the continuous improvement of capacity utilization. At the end of the
second quarter, the market stopped slipping and entered the normal track of production and operation.
II. Main Business Analysis
(i) Overview
Shows no difference with the summary disclosed in Report of the Board of Director
□Yes √No
1. Introduction
In 2020, refrigerator and freezer business achieved revenue of RMB 7.678 billion, with 2.87% down y-o-y;
air-conditioning business achieved revenue of approximately RMB 4.619 billion, with 21.82% down y-o-y.;
washing machine business achieve revenue of approximately RMB 0.467 billion, with 7.53% declined from a year
earlier.; other products of small home appliance and kitchen & toilet products and cooling parts have revenue
approximately as RMB 1.391 billion, with 16.40% up y-o-y. meanwhile, the business aboard has a revenue of
RMB 4.980 billion, 27.43% increased from a year earlier.
19
CHANGHONG MEILING CO.,LTD. Annual Report 2020
2. Progress of the company's development strategy and business plan during the reporting period
During the reporting period, in accordance with the development strategy and operating principles of ―product
leading, marketing transformation, efficiency breakthrough and team activation‖ in 2020, the company has
deployed the annual business plan, arranged the production and management, and carried out the following
activities:
(1) Product leading
In June 2020, the company and JD.com jointly released the world‘s first very clean refrigerator 365WPUCA. The
original MNC+ long-lasting odor purification and sterilization technology is used to generate high reactive oxygen
species (ROS) through the catalysis of multiple metal oxides such as manganese, copper, iron, and cerium, and
then the odor molecules produced by a variety of foods in the refrigerator undergo a chemical reaction to become
carbon dioxide and water, thereby restoring the fresh original flavor, and overcoming the disadvantages of
traditional refrigerators such as slow odor purification, poor effect, and short life. After owning "Meiling Fresh"
and "Meiling Thin", the third "Meiling Clean" business card pushes the brand image of Meiling refrigerators to a
higher level, showing Meiling's new blueprint for future refrigerators for consumers and the industry.
In July 2020, Meiling's self-produced "very thin" front-loading washing machine made its debut. The "very thin"
front-loading washing machine is centered on larger/thinner/healthier, and is committed to solving the
consumption pain points that the front-loading washing machine is difficult to embed. The "very thin"
front-loading washing machine uses taper expansion technology, inclined tube stabilization technology and cloud
disk condensation technology to increase the diameter of the inner drum to 530mm and reduce the depth of the
inner drum to 487mm, which is 10cm thinner than traditional washing machines and is the thinnest among
products of the same specification in the industry. The washing machine is perfectly embedded in the consumer's
home. After the self-production of Meiling front-loading and pulsator washing machine, a new business card
―Thin‖ increased after the ―Big‖ and ―conciseness‖
In April 2020, "Panda Lazy" new product of Changhong Air-conditioner was released online. The smart cleaning
function of this product can deep clean the evaporator, ensure the output air is clean and hygienic, and solved the
pain points that consumers can only simply clean the air conditioner filter. At the same time, the product has
precise temperature control and small temperature fluctuations. The precise temperature control of 0.1°C creates a
comfortable and constant temperature environment, which further meets the pain points of users. In December
2020, the company launched two new products, Q6C dust-free air conditioner and full DC inverter home
multi-split air conditioner. Q6C combines the fourth-generation intelligent cleaning technology and the reverse
balance 57℃ high temperature sterilization technology, breaks through the high temperature limit of ordinary air
conditioning heating, and effectively solves the two major pain points of "easy to dirty, difficult to clean" of air
conditioners through the deep cleaning of the evaporator and 57℃ high temperature sterilization, and truly
provides consumers with a ―dust-free air supply‖ solution for a dusty environment.
In 2020, the third-generation dual-engine variable frequency ultra-low temperature refrigeration storage box
20
CHANGHONG MEILING CO.,LTD. Annual Report 2020
DW-HL680 launched by Zhongke Meiling has been fully marketed. Through the dual independent frequency
conversion self-overlapping refrigeration system, the dual control system for mutual backup and embedded
independent intelligent wireless monitoring can improve operating efficiency, enhance equipment reliability and
raise the safety of sample storage to a new level with its high-efficiency refrigeration system, which is well
received by the market.
In the 16th China Household Appliances Innovation Achievement Appraisal, Meiling's M fresh full-curved glass
BCD-680WQ3S, refrigerator‘s 10-minute fast odor removing technology and very thin intelligent drum washing
machine MG100-14686BHAIS all won the innovation achievement awards, and the moisturizing control method
and application of air-cooled water tank won the China Patent Excellence Award.
During the reporting period, in terms of enhancing product competitiveness, the company's core refrigerator
products revolved around "fresh, thin, and clean", the air-conditioning products revolved around "extremely quiet,
extremely economical, and extremely intelligent", the washing machine products revolved around "thin, large, and
simple", the kitchen, bathroom and small home appliances revolved around "influential brands of water ecological
household appliances and operational services", the biomedical products were deployed around "cold chain and
healthy market opportunities", so as to strive to create differentiated and high-profit "competitive products" with
Meiling characteristics. At the same time, through benchmarking with competing products, strengthening cost and
efficiency leadership, creating cost-effective "hot sale", the company has been striving to achieve the
market-driven goals of "User-centric"..
(2) Marketing transformation
In the domestic market, under the guidance of the "one side, two points" strategy, we insist on "improving
efficiency and building capabilities", while taking advantage of the digital trend to accelerate digital
transformation in marketing and management. At the same time, aiming at the benchmark, carry out the work of
improving efficiency and reducing costs. The fierce competition in the domestic refrigerator and washing machine
market, coupled with the pressure of rising material costs, the company's refrigerator and washing machine
products were squeezed and its profitability has declined. Domestic air conditioners have been greatly affected by
the epidemic, the decline in scale, and the profitability also has declined.
In the overseas market, driven by the business strategy of ―expanding scale quickly with reasonable profits‖, the
company ―expanded incremental markets externally and grasped operating efficiency internally‖, overcame the
impact of the epidemic and achieved an increase in revenue from refrigerators and air conditioners, hit a new high;
the operating quality continued to improve, the product structure continued to enhance, and the proportion of
mid-to-high-end products continued to increase. At the same time, it actively expanded overseas private brand
sales. Under the epidemic, through the policy of guaranteeing delivery internally and grabbing orders externally,
overseas refrigerator and washing machine revenue increased by more than 35% on a year-on-year basis, and
overseas air conditioners increased by nearly 15% on a year-on-year basis, both reaching record highs.
The kitchen, bathroom and small home appliance industries adjusted their strategies and carried out industrial
integration, and revenue increased by nearly 15%. Biomedical has seized the incremental opportunity brought by
21
CHANGHONG MEILING CO.,LTD. Annual Report 2020
the epidemic, and its revenue has increased by nearly 70%.
(3) Efficiency breakthrough
Implement "one side and two points", fully benchmark against each other, and improve efficiency. During the
reporting period, the company continued to promote the special work of capital pressure control, and the capital
operation efficiency was greatly improved on a year-on-year basis through pressure control of inventory, account
receivables, and prepayments. On the development side, achieved by over 5% in R&D efficiency through the
front-end input checks, modular design, and intelligent R&D platform applications. At the production and
manufacturing side, through increase the production and efficiency, focused on promoting key projects such as
"five-izations‖, ―three easy" and lean production, a breakthrough in cost has been achieved, and the manufacturing
costs for a single refrigerator has dropped by more than 10%.
(4) Team activation
During the reporting period, the company gradually promoted the construction of the three pillars of human
resources according to the plan, and provided comprehensive strategic guidance for the transformation of human
resources, the development of talent organizations, and the optimization of salary incentives; continued to
vigorously and continuously implement the "Yongquan Plan" to select and train successors for key positions, and
improve the construction of talent reserve; through the implementation of the normalized competitive recruitment
mechanism and reserve talent promotion mechanism for cadres, strengthened the construction of professional and
technical personnel, built a company-level expert team, and expanded the career path of employees; explored the
vitality of employee development mechanism, practiced the "co-creation and sharing" incentive mechanism,
reconstructed the incentive mechanism, encouraged value creation of all employees, and further activated the
vitality of the team.
(5)Output of the refrigerator/cabinet hit a new high
At the beginning of the year, we overcame epidemic prevention pressures, personnel shortages, and material
shortages, resumed work and production, and gradually increased capacity utilization rate. By winning the
"Shangganling" battle, sales demand was guaranteed, and the output has repeatedly created new highs since April
and achieved "fighting the epidemic and stopping the decline in the first half of the year, and the overall
overtaking in the second half of the year‖, the annual output hit a record high.
(ii) Revenue and cost
1. Constitute of operation revenue
In RMB
2020 2019
Increase/decrea
Ratio in operation Ratio in operation
Amount Amount se y-o-y (+,-)
revenue revenue
Total operation revenue 15,388,050,229.67 100% 16,553,252,894.93 100% -7.04%
22
CHANGHONG MEILING CO.,LTD. Annual Report 2020
According to industries
Manufacture of household
14,154,240,737.32 91.98% 15,442,277,862.82 93.29% -8.34%
appliances
Other business 1,233,809,492.35 8.02% 1,110,975,032.11 6.71% 11.06%
According to products
Refrigerator, freezer 7,677,640,685.10 49.89% 7,904,855,681.11 47.76% -2.87%
Air-conditioning 4,619,288,893.44 30.02% 5,908,762,786.45 35.70% -21.82%
Washing machine 466,805,675.50 3.03% 434,111,186.88 2.62% 7.53%
Small appliance and
1,143,165,497.06 7.43% 993,937,389.59 6.00% 15.01%
kitchen & toilet
Other products 247,339,986.22 1.61% 200,610,818.79 1.21% 23.29%
Other business 1,233,809,492.35 8.02% 1,110,975,032.11 6.71% 11.06%
According to region
Domestic 10,398,533,564.21 67.58% 12,638,965,715.02 76.35% -17.73%
Foreign 4,989,516,665.46 32.42% 3,914,287,179.91 23.65% 27.47%
2. About the industries, products, or regions accounting for over 10% of the company’s operating income or
operating profit
√ Applicable □ Not applicable
In RMB
Increase/decrease Increase/decrease Increase/decrease
Operating revenue Operating cost Gross profit ratio of operating of operating cost of gross profit
revenue y-o-y y-o-y ratio y-o-y
According to industries
Manufacture of
household 14,154,240,737.32 11,709,373,550.27 17.27% -8.34% -5.69% -2.33%
appliances
According to products
Refrigerator, freezer 7,677,640,685.10 6,148,588,872.52 19.92% -2.87% 1.38% -3.36%
Air-conditioning 4,619,288,893.44 4,053,771,792.10 12.24% -21.82% -18.87% -3.19%
Small appliance and
1,143,165,497.06 958,061,925.19 16.19% 15.01% 14.72% 0.21%
kitchen & toilet
According to region
Domestic 9,174,395,337.92 7,413,002,117.96 19.20% -20.46% -18.00% -2.42%
Foreign 4,979,845,399.40 4,296,371,432.31 13.72% 27.43% 27.26% 0.11%
Under circumstances of adjustment in reporting period for statistic scope of main business data, adjusted main
business based on latest one year‘s scope of period-end
23
CHANGHONG MEILING CO.,LTD. Annual Report 2020
□ Applicable √ Not applicable
3. Income from physical sales larger than income from labors
√ Yes □ No
Increase/decrease
Industries Item Unit 2020 2019
y-o-y (+,-)
Manufacture of Sales volume 10 thousand pieces/set 2,086.39 1,778.48 17.31%
household Production 10 thousand pieces/set 2,103.47 1,747.30 20.38%
appliances industry
Inventory 10 thousand pieces/set 131.29 114.21 14.96%
Reasons for y-o-y relevant data with over 30% changes
□ Applicable √ Not applicable
4. Fulfillment of the company’s signed significant sales contracts up to this reporting period
□ Applicable √ Not applicable
5. Constitute of operation cost
Industry classification
In RMB
2020 2019 Increase/decr
Industries Item Ratio in operation Ratio in operation ease y-o-y
Amount Amount
cost cost (+,-)
Manufacture of
Raw
household 10,753,506,155.27 91.84% 11,370,677,092.45 91.58% 0.26%
material
appliances
Note: nil
6. Whether the changes in the scope of consolidation in Reporting Period
√ Yes □ No
More details can be seen in the report ―VII. Changes in the scope of the merger‖ and ―VIII. Interests in other
entities‖ of ―Section XII Financial Report‖
7. Major changes or adjustment in business, product or service of the Company in Reporting Period
□ Applicable √ Not applicable
8. Major sales and main suppliers
(1) Major sales client of the Company
24
CHANGHONG MEILING CO.,LTD. Annual Report 2020
Total top five clients in sales (RMB) 6,584,401,244.38
Proportion in total annual sales volume for top five clients 42.79%
Proportion of the related parties‘ sales in total annual sales volume for top five clients 31.53%
Information of top five clients of the Company
Serial Name Sales (RMB) Proportion in total annual sales
1 Client I 4,366,577,060.10 28.38%
2 Client II 787,849,299.72 5.12%
3 Client III 528,720,339.97 3.43%
4 Client IV 484,102,220.00 3.15%
5 Client V 417,152,324.59 2.71%
Total -- 6,584,401,244.38 42.79%
Other situation of main clients
□ Applicable √ Not applicable
(2) Main suppliers of the Company
Total purchase amount from top five suppliers (RMB) 2,439,049,271.05
Proportion in total annual purchase amount for top five suppliers 19.70%
Proportion of related party‘s purchase in total annual purchase amount for top five suppliers 11.96%
Information of top five suppliers of the Company
Serial Name Sales (RMB) Proportion in total annual purchase
1 Supplier I 597,140,366.93 4.82%
2 Supplier II 504,983,027.54 4.08%
3 Supplier III 468,804,500.00 3.79%
4 Supplier IV 453,129,714.63 3.66%
5 Supplier V 414,991,661.95 3.35%
Total -- 2,439,049,271.05 19.70%
Other notes of main suppliers of the Company
□ Applicable √ Not applicable
(iii) Expenses
In RMB
Increase/decreas
2020 2019 Note of major changes
e y-o-y (+,-)
Market supporting fee declined in the
Sales expense 1,945,803,799.56 2,320,362,519.95 -16.14%
Period
25
CHANGHONG MEILING CO.,LTD. Annual Report 2020
Administrative expense 280,245,684.56 330,687,143.82 -15.25% -
Exchange losses increased in the Period
Financial expense -5,529,984.84 -14,216,050.60 61.10%
R&D expense 380,638,922.91 334,218,689.69 13.89% -
(iv) Investment in R&D
√ Applicable □ Not applicable
In 2020, the Company continues to insisted on the upgrade of fundamental research on core technology in
technical research, maintained its technological advantages, expanded the innovation and upgrade in the
technological field, made breakthroughs in differentiation, continued to promote product upgrades, and led the
development orientation in the industry.
In terms of the refrigerator, the Company focused on its technology planning and core technology for technology
development, and carried out the research on human-computer interaction techniques, food refreshment
technology, energy saving and mute technology, wide rotation speed variable frequency technology, air duct
design technology, and vacuum insulation technology, etc. Among them, the "Comprehensive Thin" series
refrigerators has continued to expand the product lineup, enhance product competitiveness, and extend from the
high-end market to the mid-range market. The household freezers with large volume rate have been
simultaneously launched in the domestic and foreign markets, and the comprehensive upgrade of household
freezers has been completed. The launch of ―Very Clean‖ technology and products gave new connotations to the
"M Fresh" series refrigerators, which further enhanced the company‘s brand influence and reputation; in addition,
through the continuous upgrade and application of intelligent and frequency conversion technology, the
continuous improvement of the competitiveness of intelligent, inverter refrigerators was realized, inverter
technology has kept the leading position in the industry. The company accelerated the promotion of 0.1℃ inverter
and air-cooled technologies and products to overseas markets, frequency conversion and air-cooled refrigerators
has been rising rapidly in export products. The "micro-frost" series refrigerators have been rapidly promoted
overseas to meet the differentiated and personalized demands in overseas markets. The company seized the energy
efficiency upgrade opportunities of major developed economies, quickly launched a series of products that meet
the new energy efficiency standards, and obtained first-mover advantages.
In air conditioning, according to the strategic planning of holistic intelligent air ecosystem, the Company core
with the technical strategic as intelligence and frequency conversion, carrying out variable frequency control in
depth, CFD&CAE simulation, intelligent voice, and basic core ability construction as recognition and interaction
etc. Focusing on the comfort and reliability of air conditioners, the establishment of the fifth-generation precision
temperature control technology platform based on the PMV comfort control of new sensors such as infrared and
26
CHANGHONG MEILING CO.,LTD. Annual Report 2020
the motor winding temperature measurement method has been completed; the simulation technology has revolved
around the vibration of the compressor and system pipelines, and completed the development of the optimization
calculation software for the pipeline stress of the four-way valve of the air conditioner, which greatly improved
the efficiency and quality of research and development. It‘s the first in the industry to launch the air-conditioning
external unit single-board dual-drive onboard PFC technology solution with less electrolytic capacitors and the
second-generation on-hook internal unit dual-board dual-chip direct drive technology solution, which has been
applied in products in batches. It launched "Xiongmaolan" series specifications, T-shaped cabinet products with
different energy efficiency levels with Changhong's characteristics, and Q6C on-hook products with the "all
dust-free" concept, which came into the market in batches, and earned a good reputation from the market.
In terms of biomedicine, Zhongke Meiling, the company's NEEQ listed subsidiary, has achieved a number of key
technological breakthroughs relying on its profound research experience and technology accumulation in the field
of cryogenic storage. The dual-engine variable frequency series ultra-low temperature freezer DW-HL680 has
been developed and launched, it adopts a dual independent frequency conversion self-cascade refrigeration system,
is equipped with a dual backup control system, and is embedded with independent intelligent wireless monitoring,
which raises the safety of sample storage to a new level. The new series blood bank refrigerator XC-618L has
been developed and come into the market, with its safe and reliable refrigeration system, multiple noise reduction
design, intelligent blood bank management system and precise temperature control system, it provides a reliable
equipment environment for the high-standard storage and management of blood. The brand new series of ice-lined
refrigerators are developed and marketed, which is the first domestic ice-lined refrigerator that meets the
requirements of the new PQS regulations. Many life sciences and laboratory products have entered the trial
production stage, such as clean benches, chromatography cabinets, etc., the ecosystem layout of Meiling
biomedical products is gradually advancing and landing. In 2020, a total of 90 intellectual property patents were
applied in the whole year by Zhongke Meiling, an increase of 40% over last year, including16 invention patents,
40 utility models, 31 appearance patents and 3 software copyrights; obtained 76 authorized intellectual property
rights, including 4 invention patents, 40 utility models, 29 appearance patents and 3 software copyrights.
In terms of washing machines, the company increased the strategic layout of washing machine product lines, and
took the lead in launching the "Very Thin" drum series products, which adopted ultra-thin platform technology
development and three domestic pioneering technologies such as oblique drum stabilization, cone expansion and
cloud disk condensation achieved the super large diameter of 530MM of the inner drum, significantly improved
the space utilization and the effect of efficient drying of clothes, so as to achieve a slim body of 487MM, and
finally achieve the goal of freely embedding the washing machine, reducing the space and caring for the clothes.
In the impeller-type washing machines, it developed and put the 580 platform into production, which improved
the volume of impeller-type products; the newly developed 610 and 660 series brought a deeper level of washing
care to consumers through the appearance design of the high-end model equipped with the waterfall washing
function. Regarding the core technology of the electronic control system, the company realized the independent
research and development of the whole series of impeller-type full series control panels, effectively enhanced the
core competitiveness of the products. In 2020, a total of 60 patent applications have been filed for washing
machines, including 35 invention patents and 25 utility model patents.
27
CHANGHONG MEILING CO.,LTD. Annual Report 2020
In terms of kitchen and bathroom appliances and small household appliances, the company built a large kitchen
and bathroom R&D center in Zhongshan, Guangdong, and a small household appliance R&D center in Hefei,
Anhui, followed the strategic deployment of smart kitchens and differentiated products, took the range hood as the
center of the smart kitchen, and connected kitchen stoves, disinfection cabinets, steaming ovens, dishwashers,
water heaters, and water purifiers to achieve interconnection, voice control, security guards, smart cooking and
other functions. At the same time, the company developed DC frequency conversion technology and applied it to
range hoods and gas water heater products. The company had innovative design of stove which has seven cavities
and multiple burners, while the unique 45° sawtooth design greatly reduces the risk of tempering; made a
comprehensive layout of zero cold water gas water heaters; designed and developed, and mass-produced
condensing wall-mounted stove which can save more than 20% of gas than ordinary wall-mounted stove; and
completed the development and marketing of community water vending machines for water purifiers equipped
with a self-developed software system. For small household appliances, the company developed tea art machine
products, overcame the core technical problems of warm boiled water heat exchange, tea soup separation
technology, and 3 seconds instant heat; completed the software and hardware design, structural design and APP
development of the Bluetooth module of the Bluetooth anti-lost device, and achieved mass production; carried out
the technical research on locator products, and completed the design of software, hardware and structural scheme
with the core technologies such as GPS, 4G CAT1; completed the development of voice tea bar machine products,
and achieved voice control and APP intelligent control, and the product has been smoothly marketed. Regarding
the export of small household electrical appliances, in view of the African market and the dietary characteristics of
African consumers, Xima machine products have been innovatively designed and developed and exported to the
market, and corresponding overseas patents have been simultaneously applied for. In 2020, a total of 13 patents
have been applied for, including 7 invention patents, 4 utility model patents, and 2 appearance patents.
R&D investment of the Company
2020 2019 Change ratio (+,-)
Number of R&D (people) 1431 1,529 -6.41%
Ratio of number of R&D 19.62% 16.62% Increase by 3 percentage points
R&D investment (RMB) 556,253,003.33 782,372,129.86 -28.90%
R&D investment as a percentage of operating 3.61%
4.73% Decrease by 1.12 percentage points
income
Capitalized amount of R&D investment (RMB) 134,284,644.90 128,970,096.82 4.12%
Capitalized R&D investment as a percentage of 24.14%
16.48% Increase by 7.66 percentage points
R&D investment
The reason of great changes in the proportion of total R&D investment accounted for operation income than last
year
√Applicable □ Not applicable
During the reporting period, affected by the COVID-19 epidemic, the Company focus on resumption of the work
28
CHANGHONG MEILING CO.,LTD. Annual Report 2020
and production in the first half of the year, and some R&D projects were postponed resulting in a y-o-y decrease
in amount of R&D investment.
Reason for the great change in R&D investment capitalization rate and rational description
□ Applicable √ Not applicable
(v) Cash flow
In RMB
Increase/decrease
Item 2020 2019
y-o-y(+,-)
Subtotal of cash in-flow from operation activity 16,120,150,110.69 17,770,961,164.50 -9.29%
Subtotal of cash out-flow from operation activity 14,716,633,888.23 16,485,957,179.46 -10.73%
Net cash flow from operation activity 1,403,516,222.46 1,285,003,985.04 9.22%
Subtotal of cash in-flow from investment activity 1,171,001,295.31 3,292,055,574.16 -64.43%
Subtotal of cash out-flow from investment activity 1,801,306,139.22 2,415,012,035.85 -25.41%
Net cash flow from investment activity -630,304,843.91 877,043,538.31 -171.87%
Subtotal of cash in-flow from financing activity 2,049,754,910.57 1,731,668,612.80 18.37%
Subtotal of cash out-flow from financing activity 1,748,483,992.86 3,001,416,948.24 -41.74%
Net cash flow from financing activity 301,270,917.71 -1,269,748,335.44 123.73%
Net increased amount of cash and cash equivalent 1,039,722,339.59 901,164,287.58 15.38%
Main reasons for y-o-y major changes in aspect of relevant data
√Applicable □Not applicable
The significant change in net cash flows from investment activities was mainly due to a y-o-y decline in cash
received from the Company‘s recovery of investments during the Period.
The significant change in net cash flows from financing activities was mainly due to a y-o-y decrease in cash paid
by the Company for debt repayment during the Period.
Reasons of major difference between the cash flow of operation activity in report period and net profit of the
Company
√Applicable □Not applicable
Mainly due to the increase in inventories and operating payable at end of the reporting period compared to the
beginning of the year.
III. Analysis of the non-main business
√Applicable □ Not applicable
In RMB
29
CHANGHONG MEILING CO.,LTD. Annual Report 2020
IV. Analysis of assets and liability
Ratio in total Whether be
Amount Note
profit sustainable (Y/N)
Gains on delivery of the forward foreign exchange
Investment income 78,127,214.62 -90.97% N
contracts in the period
Gains/losses from fair Gains in assessment of current forward foreign
41,614,800.19 -48.46% N
value changes exchange contract in the period
Provision for inventory depreciation and accrual of
Asset impairment -78,711,657.91 91.65% N
intangible assets impairment increased in the period
Non-operation income 8,468,605.41 -9.86% N
Non-operation
7,644,641.64 -8.90% N
expenditure
Credit impairment -17,058,488.00 19.86% N
(i) Major changes of assets composition
Adjust relevant items of financial statements at the year of fist implementation of the new revenue standards or
new leasing standards since 2020
√Applicable □Not applicable
In RMB
Year-end of 2020 Year-begin of 2020 Ratio
Ratio in Ratio in changes( Note of major changes
Amount Amount
total assets total assets +,-)
Mainly due to the increase of net cash flow
Monetary fund 6,594,786,789.98 40.95% 5,499,601,030.64 38.72% 2.23% from the company's operating activities in
the current period.
Due to accelerated turnover of the account
Account receivable 1,130,275,780.66 7.02% 1,387,961,981.66 9.77% -2.75%
receivable
Turnover of the inventory declined in the
Inventory 1,715,354,951.43 10.65% 1,460,910,189.06 10.29% 0.36%
Period
Due to the transfer of investment real
Investment real estate 53,888,462.00 0.33% 96,343,760.13 0.68% -0.35%
estate to fixed assets in the Period
Long-term equity Joint venture has a deficit in the Period and
76,982,822.38 0.48% 88,556,511.70 0.62% -0.14%
investment declare the payment of cash dividends
Transferred from construction in progress
Fix assets 2,391,859,440.31 14.85% 2,180,572,946.87 15.35% -0.50%
increased in the period
Construction in Construction in progress transferred to
60,775,088.96 0.38% 252,494,792.31 1.78% -1.40%
progress fixed assets in the period
Short-term loans 1,336,209,050.55 8.30% 1,103,991,045.96 7.77% 0.53% Short-term loans increased in the Period
Long-term loans 188,231,439.30 1.17% 401,280,000.00 2.83% -1.66% The long-term loans due within one year
30
CHANGHONG MEILING CO.,LTD. Annual Report 2020
from parent company were re-classified
(ii) Assets and liability measured by fair value
√Applicable □ Not applicable
In RMB
Deval
Accumulativ uation
Changes of
Amount at the e changes of of Amount of
fair value Sales in the Amount at end of
Items beginning fair value withdr purchase in the Other changes
gains/losses in period the period
period reckoned awing period
this period
into equity in the
period
Financial assets
1.Trading financial
assets (derivative
7,730,268.92 39,512,070.15 47,242,339.07
financial assets
excluded)
2.Derivative financial
1,632,388,702.83 1,632,388,702.83
assets
3.Other debt
45,000,000.00 5,608,931.34 500,000,000.00 2,460,000.00 548,148,931.34
investment
Subtotal of financial
52,730,268.92 45,121,001.49 500,000,000.00 2,460,000.00 1,632,388,702.83 2,227,779,973.24
assets
Above total 52,730,268.92 45,121,001.49 500,000,000.00 2,460,000.00 1,632,388,702.83 2,227,779,973.24
Financial liabilities 1,081,534.93 3,506,201.30 -3,659.72 4,584,076.51
Other changes:
Other changes in the financing of accounts receivable were that the company reclassified the bills receivables that
both aimed at collecting contractual cash flow (collection) and selling (endorsed or discounted) into accounts
receivable financing during the current period. Other changes in financial liabilities are due to differences in the
evaluation and conversion of forward foreign exchange contract of the subsidiary Indonesian Changhong .
Whether there have major changes on measurement attributes for main assets of the Company in report period or
not
□Yes √ No
(iii) Assets right restricted ended as reporting period
Ended as the reporting period, the Company has no major assets been closed down, detain, freeze or pledge and guarantee. As for
31
CHANGHONG MEILING CO.,LTD. Annual Report 2020
other assets have restriction on rights found more in relevant content of ―57. Assets with restricted ownership or use rights‖ in ―VI.
Note of consolidate financial statement‖ carried under Section XII. Financial Report
V. Investment
(i) Overall situation
√Applicable □ Not applicable
Investment in the reporting (RMB) Investment in the same period of last year ( RMB) Changes
662,169,149.17 37,591,140.00 1,661.50%
(ii) The major equity investment obtained in the reporting period
√Applicable □ Not applicable
32
CHANGHONG MEILING CO.,LTD. Annual Report 2020
In RMB
Whether Date of
Metho Capita Term Index of
Status as of involved disclosure
Name of d of Amount of Shareholdi l Partne of Type of Expecte Current investment disclosure (if
Principal business the balance in a (if
invested invest investment ng ratio source rs invest products d return profit and loss applicable
sheet date lawsuit(Y/ applicable
ment s ment )
N) )
R&D,
producti
Technology research and development,
on and
Anhui technical consulting, technical services,
sales of Contributed 5 Juchao Website:
Tuoxing processing, sales, design, installation,
Newly the million yuan Not http://www.cnin
Science and maintenance of refrigeration equipment; Own Long-t
establi 10,000,000 63.2683% N/A cryogeni in the applic N 2019-4-20 fo.com.cn
Technology mechanical and electrical equipment fund erm 1,470,481.65
shed c reporting able (Notice No.:
Co., Ltd.(note installation; warehousing services (except
refrigera period 2019-025)
1) dangerous goods); processing and sales of
tion
metal products.
equipme
nt
Import Contributed 1
& million US
export, dollar in the
wholesal reporting Juchao Website:
CH-Meiling
Engage in the import & export, wholesale and Newly e and period Not http://www.cnin
International US$ 1 Own 50 2019-12-0
distribution of all household appliances within establi 100% N/A distributi (exchange rate applic -1,169,089.69 N fo.com.cn
(Philippines) million fund years 7
the scope permitted by the law shed on of of USD to able (Notice No.:
Inc.
househol RMB is 2019-083)
d converted
applianc according to
es 6.8891)
33
CHANGHONG MEILING CO.,LTD. Annual Report 2020
Production: air conditioners, refrigerators and
freezers, heat pumps, water heaters, air
conditioning fans, electric fans, humidifiers, R&D,
electric heaters, clothes dryers, dehumidifiers, Sichua
manufac
air purifiers, air water generators, electric n Juchao Website:
turing Contributed
Zhongshan fireplaces, kitchen and Capita
appliances Chang http://www.cnin
and 150 million Not
Changhong kitchenware, refrigeration units and spare l Own hong 20 fo.com.cn
334,000,000 100% foreign yuan in the applic -7,867,110.38 N 2020-3-28
Electric Co., parts for the above products; engaged in the increas fund Air-co years (Notice No.:
sales of reporting able
Ltd. import and export of self-produced products e ndition 2020-012,
air period
and raw and auxiliary materials, equipment er Co., 2020-018)
conditio
and technology; engaged in software Ltd.
ner
development and consulting.
Research and development, production and
In reporting
sales: household electric appliances, R&D,
period,
non-electric household appliances, gas water manufac
acquired the
heaters, gas boilers, heat accumulating type turing
0.18% equity
series electric heaters, kitchen and toilet and
of Daily
Changhong furniture, audio-visual equipment, radio and sales of Juchao Website:
Electric
Meiling Daily television equipment, computers, Hu kitchen Not http://www.cnin
Acquis Own Long-t Technology
Electric communications and other electronic 83,000,000 99.0361% Zhihen &small applic 40,773,010.71 N 2020-4-18 fo.com.cn
ition fund erm held by
Technology equipment , interior decoration materials, g househol able (Notice No.:
individual
Co., Ltd. general equipment, water purification d 2020-022)
shareholder
equipment, smart bags, personal hygiene applianc
Wu
products; software and information es and
Changyuan
technology services; business management water
with
consulting services; second and third types of purifier
280,049.17
medical equipment operating companies;
34
CHANGHONG MEILING CO.,LTD. Annual Report 2020
goods and technology import and export. Yuan
Provide financial and financing consulting
services, credit verification and related
consultation and agent services to member Provide
Complete the
units; assist member units to realize the financial
capital
receipt and payment of transaction funds; and
increase of
approved insurance agency business; provide financin
500 million
guarantee to member units; handle the g
Chang yuan in the Juchao Website:
entrusted loans between member units; consulti
hong reporting 2019-09-1 http://www.cnin
conduct bill acceptance and discount for ng
Group, period 0, fo.com.cn
member units; handle internal transfer and services,
Sichuan Capita Sichua (including 2019-09-2 (Notice No.:
settlement between the member units and credit Not
Changhong l Own n Long-t 402.9983 7, 2019-060;
corresponding settlement and clearing plan 500,000,000 14.96% verificati applic -- N
Group Finance increas fund Chang erm million yuan 2020-07-2 2019-061,
design; to absorb deposits of member units; on and able
Co., Ltd. e hong, reckoned into 8, 2019-063,
conducting loans and financial leasing to related
Chong registered 2020-08-0 2019-067,
member units; engaged in the interbank consultat
hong capital and 8 2020-051 and
borrowing; handle entrusted investment ion and
Huayi 97.0017 2020-054)
between member units; securities investment agent
million yuan
other than stock investment; buyer‘s credit of services
included in
products from member units; consumer credit to
capital
of products from member units; spot member
reserves)
settlement of foreign exchange; other business units
approved by the China Banking Regulatory
Commission.
Hefei Research and sales of the household electric Ningb R&D Juchao Website:
No
Changhong appliances, non-electric household appliances, Newly o and Not http://www.cnin
Own Long-t contribution in 2020-12-1
Meiling Life gas stove, gas water heaters, gas boilers, fast establi 50,000,000 70% Hongli sales of applic -- N fo.com.cn
fund erm the reporting 2
Electric Co., heating electric water heater (electric heating shed ng the able (Notice No.:
period
Ltd. wall-hung furnace), heat accumulating type Enterp househol 2020-097)
35
CHANGHONG MEILING CO.,LTD. Annual Report 2020
series electric heaters, direct heating series rise d
electric heater; kitchen and toilet furniture, Manag applianc
audio-visual equipment, radio and television ement es,
equipment, computers, communications and Partne kitchen
other electronic equipment , interior rship electrics
decoration materials, general equipment, (Limit and
water purification equipment, luggage, ed small
personal care and personal hygiene items; Partne applianc
health care products, massage equipment and rship) es
hardware department; software and products
information technology services; business
management consulting services; sales of
second and third types of medical equipment ;
goods and technology import and export. (the
import & export of goods and technologies
prohibited by the state or involving
administrative examination and approval is
excluded)
Total -- -- -- -- -- -- -- -- -- - 33,207,292.28 -- -- --
Note 1: After the deliberation and approval of the 21st meeting of the ninth board of directors of the company, it was agreed that the company's subsidiary company Zhongke Meiling invested
10 million yuan to invest in the establishment of a wholly-owned subsidiary Anhui Tuoxing Science and Technology Co., Ltd The Company holds 63.2683% equity of Zhongke Meiling, so the
Company indirectly holds 63.2683% equity of Anhui Tuoxing Science and Technology Co., Ltd.
(iii)The material non-equity investment in the reporting period
√Applicable □ Not applicable
36
CHANGHONG MEILING CO.,LTD. Annual Report 2020
In RMB
Industry Accrued Actual Accrued
Invested
Invest involved Investment Investment Realized
with Reasons for not Reaching Disclosed
ment in Amount in this Amount up to Capital Anticipated Income up Disclosed Index
Project Name fixed Project Schedule the Planned Schedule and Date (if
Metho Investm Reporting the End of Source Income to the End of (if any)
assets Anticipated Income any)
d ent Period Reporting Reporting
(Y/N)
Projects Period Period
The
During the reporting period, " production
During the reporting
annual production base project capacity of period, a combination of
of 2 million washing machin one million Juchao Website:
factors such as ramp up of
Manufac es (phase II)" has been put i sets of http://www.cnin
capacity, impact of New
ture of nto trial production in June, automatic fo.com.cn
Production base project Approximat Coronavirus pneumonia,
househol 2020. Up to now, the project roller washing (Notice No.:
of annual output of 2 Self-b Fund-rai ely sales of products, prices of 2019-7-9;
Y d 41,301,431.18 75,485,894.10 has basically reached the int machine shall 2019-040,
million washing uilt sing -36,700,000 bulk materials, 2019-7-26
applianc ended serviceable state, and t be formed 2019-041,
machines(Phase II) yuan depreciation and
es he acceptance of facilities and after this 2019-042,
amortization led to losses
industry equipment has basically ende project being 2019-043 and
in the project after trial
d, and the remaining payment put into 2019-047)
production during the
is still in the process of pay operation
current reporting period.
ment.
Total -- -- -- 41,301,431.18 75,485,894.10 -- -- - - -- -- --
Note 1: In order to further improve the efficiency of the company‘s use of raised funds, after careful study and demonstration, the 24th session of the 9th board of directors, the 13th session of the
9th board of supervisors, and the resolution of the second extraordinary general meeting of shareholders in 2019 approved and agreed that the company shall change the unused raised funds of
120 million yuan from the sub-project Freezer Intelligent Construction Project of the "Intelligent Manufacturing Construction Project" and put into the "Production base project of annual output
of 2 million washing machines(Phase II) ". The project (phase II) has been put into trial production in June 2020. Up to now, the project has basically reached the expected usable state, and the
acceptance of facilities and equipment has been basically completed. Balance is still in the payment process.
37
CHANGHONG MEILING CO.,LTD. Annual Report 2020
(iv)Financial assets investment
1. Securities investment
□ Applicable √ Not applicable
The Company had no securities investment in the reporting period.
2.Derivative investment
√ Applicable □ Not applicable
38
CHANGHONG MEILING CO.,LTD. Annual Report 2020
In 10 thousand Yuan
Amount of Ratio of
Whether reserve for investment
Relate Amount Amount
related Investment devaluation Investment amount at Actual
d purchased in sales in the
Operator trade or Type Initial investment Start date End date amount at of amount at period-end in net gains/losses in
relatio the reporting reporting
not(Y/N period-begin withdrawing period-end assets of the period
nship period period
) (if Company at
applicable) period-end
Financial Forward foreign
N/A N 118,035.04 2019-6-28 2021-12-31 73,225.52 332,756.09 216,725.63 - 184,610.32 38.03% 4,645.66
institution exchange contract
Total 118,035.04 -- -- 73,225.52 332,756.09 216,725.63 - 184,610.32 38.03% 4,645.66
Capital resource Own fund
Lawsuit involved (if applicable) Not applicable
Disclosure date for approval from the Board for
2020-3-26
investment of derivatives (if applicable)
Disclosure date for approval from board of shareholders
2020-5-29
for investment of derivatives (if applicable)
Risk analysis:
1. Market risk: domestic and international economic situation changes may lead to exchange rate fluctuations, forward foreign exchange transactions are under certain
market risk. Forward foreign exchange business is aiming to reducing impact on corporate profits by foreign exchange settlement and sale prices, exchange rate
Risk analysis and controlling measures for derivatives 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
holdings in the Period (including but not limited to currency exchange rates, combined with prediction of consignments, and burdening ability to price variations due to exchange rate fluctuations, then determine the
market risk, liquidity risk, credit risks, operation risk and plan of forward foreign exchange contracts, and make dynamic management to the business, to ensure reasonable profit level.
law risks etc.) 2. Liquidity risk: all foreign exchange transactions are based on a reasonable estimate of the future import and export business, to meet the requirements of the trade
authenticity. In addition, forward foreign exchange transactions are processed with bank credit, will not affect liquidity of company funds.
3. Bank default risk: if cooperative banks collapse within the contract time, the Company will not be able to transact the original foreign exchange contracts with
contract price, which leads the risk of income uncertainty. So the Company chose five state-owned banks, the Chinese-funded banks in shareholding enterprise as
39
CHANGHONG MEILING CO.,LTD. Annual Report 2020
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 market The Company determines fair value in accordance with the Chapter VII ―Determination of Fair Value‖ carried in the Accounting Standards for Business Enterprises
price or fair value in the Period, as for analysis of the No.22 - Recognition and Measurement of Financial Instruments. Fair-value is basically obtained according to prices offered by bank and other pricing services. While
fair value of derivatives, disclosed specific applied fair-value of derivatives is mainly obtained according to the balance between prices given by outstanding contracts and forward prices given by contracts signed
methods and correlation assumption and parameter during the reporting period with bank. The differences are identified as trading financial assets and liabilities. During the reporting period, forward foreign exchange
setting contracts and losses of the Company is 46.4566 million Yuan.
Specific principle of the accounting policy and
calculation for derivatives in the Period compared with Not applicable
last period in aspect of major changes
Upon inspection, the independent directors of the Company believes that: during the reporting period, the Company carried out its foreign exchange forward deals in
strict compliance with the Standardized Operation Guidelines for Listed Company issued by Shenzhen Stock Exchange, the Articles of Association, Authorization
Management of the Company, Management System in relating to Foreign Exchange Forward Deals of Hefei Meiling Co., Ltd., and these deals were conducted within
the authorization scope under general meeting and board meeting. The Company conducts no foreign exchange transactions on the purpose of getting profit only, all
Special opinion on derivative investment and risk
of the forward foreign exchange transactions are operates based on normal operating and production, which is relying on specific business operations with purpose of
control by independent directors
avoiding the preventing the risks in exchange rate. The forward foreign exchange transactions of the Company are beneficial to prevent the exchange risks exposed by
import and export business and thus met its requirement for operation development. There was no speculative operation, no break of relevant rules and regulations
and relevant business was conducted under corresponding decision-making procedures. Interests of the Company and entire shareholders, especially minority
shareholders, were not prejudiced.
40
CHANGHONG MEILING CO.,LTD. Annual Report 2020
(v) Application of raised proceeds
√ Applicable □ Not applicable
1. Overall application of raised proceeds
√ Applicable □ Not applicable
In 10 thousand Yuan
Total raised Cumulative Ratio of Raised
Total Total
Total raised capital has raised capitals cumulative capitals idle
Raising Total raised accumulative accumulative Usage of the retained raised capitals and what is
Way capital used purpose of has purpose of raised capitals for more
year capitals raised capitals raised capitals expected to invested with those capitals
in Period uses changed uses changed in has purpose of than two
used unused
in Period total uses changed years
The raised funds that the Company has not run out
will continue to complete the corresponding
investment as planned. Meanwhile, the unused
raised funds shall all be deposited in the
Non-publ
designated special account for raised funds.
ic
Without affecting the implementation progress of
2016 offering 154,073.272276 9,442.380857 107,553.992006 0 47,246.035127 30.66% 15,652.444656 --
the raised project, the Company will use the idle
of
raised funds to purchase financial products, which
A-shares
will explain on part of the item ―note 3:usage and
directions of the raised funds that have not yet
been used‖ under ―2.Situation of committed
project of raised proceed‖ in this section.
Total -- 154,073.272276 9,442.380857 107,553.992006 0 47,246.035127 30.66% 15,652.444656 --
Explanation on General usage of raised capital
Being deliberated and approved by 1st extraordinary shareholders meeting of 2016 and 17th session of 8th BOD, and verified by the Reply on Private Placement of Hefei Meiling Co., Ltd. (CSRC XK [2016]
41
CHANGHONG MEILING CO.,LTD. Annual Report 2020
No.1396) issued from CSRC, the Company successfully offering 280,858,676 shares (A-stock) to 7 qualified investors, including Sichuan Changhong Electric Co., Ltd. (hereinafter referred as to Sichuan
Changhong), with price of 5.59 Yuan/Share and face value of 1.00 Yuan. According to the Verification Report XYZH/2016CDA40272 issued by Shine Wing Certified Public Accountants (LLP), total raised
fund amounting to 1,569,999,998.84 Yuan, less vary issuance changes (tax included) 29,267,276.08 Yuan, raised fund amounts to 1,540,732,722.76 Yuan.
Ended as 31 December 2020, actually fund of raised used accumulative amounted as 1,075,539,920.06 Yuan in total, balance of the account for fund raised counted as 156,524,446.56 Yuan (including interest
income accumulative amounted as 3,770,265.96 Yuan and income from financial product at expiration 39,525,852.13 Yuan)
The Company accumulative used the fund raised amounted as 1,075,539,920.06 Yuan, the use of purpose including: intelligent construction has 346,484,617.85 Yuan in used; R&D ability for intelligence and
new products for intelligent household appliance has 413,173,638.44 Yuan in used; smart life project totally used 45,001,600.00 Yuan; used in current fund supplementary counted as 270,880,063.77 Yuan
(including saving interest of 147,341.01 Yuan)
2. Situation of committed project of raised proceed
√ Applicable □ Not applicable
In 10 thousand Yuan
Investment
Cumulative Achieved
Committed investment Change the project progress till Date of reach a Benefit Major changes of
Total raised-fund Investment after Invested in the investment amount expected
projects and over-raised (Y/N) (including end of predetermined state of achieved in project feasibility
commitment adjustment (1) period till end of benefits
fund investment partially changed) period-end (3) use the Period (Y/N)
Period-end (2) (Y/N)
＝(2)/(1)
Committed investment project
Intelligent
manufacturing (Hefei)
3,233 N
project: end of
December 2020;
Construction of intelligent Annual output of 2
Partial change 39,100.00 39,100.00 6,356.017785 34,648.461785 88.61% N
manufacturing project million washing
machine production
-3,670 N
base project (phase II):
trial production in June
2020
42
CHANGHONG MEILING CO.,LTD. Annual Report 2020
Construction of intelligent
R&D capability and new Partial change, the The project reach the
Not
products development of procedures for final 55,900.00 48,188.658476 3,086.363072 41,317.363844 85.74% intended usable state at -- N
applicable
the intelligent appliance approval completed end of the 2019
technology
Not
Intelligent life project Change completed 32,000.00 4,500.16 0 4,500.16 100.00% -- -- Y
applicable
Supplementary the Not
No changes 27,073.272276 27,073.272276 0 27,088.006377 100.05% -- -- N
floating capital applicable
Subtotal of committed
-- 154,073.272276 118,862.090752 9,442.380857 107,553.992006 -- -- -- -- --
investment project
Investment of the over-raised fund
No over-raised fund in the Period
Payment of bank loans (if
-- -- -- -- --
applicable)
Supplementary the
floating capital (if -- -- -- -- --
applicable)
Subtotal of over-raised
-- -- -- -- -- --
fund investment
Total -- 154,073.272276 118,862.090752 9,442.380857 107,553.992006 -- -- -- -- --
Conditions and reasons of failure to meet schedule or predicted income (by specific
Found in Note 1
projects)
Description of major changes in project feasibility Not applicable
Amount, use of purpose and usage progress of the excessive raised fund Not applicable
Change of the implementation location of project with investment of raised fund Not applicable
43
CHANGHONG MEILING CO.,LTD. Annual Report 2020
Adjustment of the implementation ways of project with investment of raised fund Not applicable
Early investment and replacement with the raised fund Found in Note 2
Temporary replacement of the working capital with idle raised funds Not applicable
Amount and reasons of cash surplus in raised funds during implementing the project Not applicable
Use purpose and destination of the raised funds un-used Found in Note 3
Relevant information with raised funds concerned are disclosed in a timely, true, accurate and complete manner, there is no
Problems or other circumstances in the use of raised funds and its disclosure
violation in the deposit, use, management and disclosure of the raised funds.
44
CHANGHONG MEILING CO.,LTD. Annual Report 2020
Note 1:
1.“Construction of intelligent manufacturing project ”:
(1) the original planning construction period of ―construction of intelligent manufacturing (Hefei) project‖ is 3-year, and with
purpose of regulating the use of raised funds, the resolution of the 20th session of the 9th BOD and the 11th session of the 9th
Supervisory Committee of the Company passed and agreed to postpone the date that the project achieves the scheduled serviceable
condition to the end of December 2021. Up to now, the "construction of intelligent manufacturing (Hefei) project" has basically
reached its intended use status. During the reporting period, due to the impact of the COVID-19 epidemic, and the combined impact
of the decline in the company's sales scale and the increase in prices of bulk materials, the project's revenue during the reporting
period did not meet expectations.
(2) During the reporting period, "annual production base project of 2 million washing machines (phase II)" has been put into trial
production in June, 2020. Up to now, the project has basically reached the intended serviceable state, and the acceptance of facilities
and equipment has basically ended, and the remaining payment is still in the process of payment. During the reporting period, a
combination of factors such as ramp up of capacity, impact of New Coronavirus pneumonia, sales of products, prices of bulk
materials, depreciation and amortization led to losses in the project after trial production during the current reporting period..
2.“Construction of intelligent R&D capability and new products development of the intelligent appliance technology ”
In order to accelerate the implementation of the company‘s ―intelligent research and development projects‖, shorten the development
cycle of intelligent products, improve the company's research and development capabilities, and reduce the repeated investments in
resources, the resolutions of the 31st meeting of the ninth board of directors, the 16th meeting of the ninth board of supervisors, and
the 4th extraordinary shareholders‘ meeting in 2019 passed and agreed the company to change the use and investment of some of the
funds raised in the ―intelligent research and development project‖, and use them to purchase intelligent infrastructure platform
construction and software R & D platforms and other R & D assets from Sichuan Changhong Electric Co., Ltd. and its subsidiaries.
The pricing of the related transactions was subject to the appraised value of the underlying asset as of September 30, 2019, and the
transaction price was determined to be 46,617,300 yuan. Up to now, relevant assets with the transaction involved has not been
completed, and the transaction capital has not been paid.
Furthermore, according to the resolutions of the 33rd meeting of the ninth board of directors of the company, and the 1st extraordinary
shareholders‘ meeting in 2020, passed and agreed the company to close the ―intelligent research and development project‖ and use
the project‘s surplus raised funds of 125,084,220.44 yuan (including interest income of 47,970,805.20 yuan from wealth management
and deposits) as of November 30, 2019 and the interest settled in the future to permanently supplement the company‘s working
capital, and the specific amount was subject to the actual balance of the special account after deducting the balance of reserved
contract and the guarantee deposit on the day the funds were transferred out. At the same time, a total of 114,368,326.60 yuan,
including the balance of the contract to be paid and the guarantee deposit would be reserved in the fund raising account and paid in
accordance with the contract agreement.
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 will continue to be used to pay the contract balance and guarantee deposit. During the
report period, totally 30,863,630.72 yuan have been paid for the contract balance and guarantee deposit. As of the reporting period,
remaining raised fund amounted to 69,906,907.07 yuan.
3.“Intelligent life project”
45
CHANGHONG MEILING CO.,LTD. Annual Report 2020
The resolutions of the 24th meeting of the ninth board of directors of the company, the 13th meeting of the ninth board of supervisors,
and the 2nd extraordinary shareholders‘ meeting in 2019 passed and approved the company to terminate the implementation of the
―Intelligent life project‖ and use the remaining raised funds and financial management interest of the project to permanently
supplement the working capital. The company has withdrawn the remaining funds raised and interest income from this account, a
total of 305,843,051.27 yuan, to permanently supplement the company‘s working capital. After the withdrawal, the remaining funds
of the special account for the raised funds were 0 yuan, and the account was cancelled. Meanwhile, the implement subject -
Changmei Technology Co., Ltd. (hereinafter referred to as the ―Changmei Technology‖) has been liquidated and cancelled.
4. “Supplementary the floating capital ”
The investment progress exceeded 100%, and mainly due to the use of raised funds containing the deposit interest of raised funds.
Note 2: Early investment and replacement with the raised fund
Ended as 31 October 2016, the Company contributed self-raised fund 63,984,738.91 yuan for the raised-fund investment project, the
money has replaced as 63,984,738.91 yuan. Shine Wing CPA (LLP) made a special audit for pre-investment and carried out an
Assurance Report on Invested Self-raised fund to the Raised-fund Investment Before Hand (XYZH/2016CD40285) (hereinafter
referred as to Assurance Report). Replacement are as:
In 10 thousand Yuan
Commitment
Investment of self-raised
Total capital for Amount
Raised-fund investment project fund invested till end of 31
investment raised-fund replaced
October 2016
project
Construction of intelligent
39,870.65 39,100.00 2,545.41 2,545.41
manufacturing project
Construction of intelligent R&D
capability and new products
55,900.00 55,900.00 2,053.06 2,053.06
development of the intelligent
appliance technology
Intelligent life project 32,076.00 32,000.00 1,800.00 1,800.00
Total 127,846.65 127,000.00 6,398.47 6,398.47
th th th th
The replacement has been deliberated and approved by the 27 session of 8 BOD and 14 session of 8 supervisory committee,
independent directors are proposed an agreeable independent opinion, and sponsor institution carried out a verification opinion
without objection.
Note 3: Use purpose and destination of the raised funds un-used
The raised-fund have not been used will continues to completed the corresponding investment according to the project
implementation plan. Meanwhile, according to the raised-fund investment plan, and been deliberated and approved by the Board, the
Board of supervisors and shareholder general meeting at beginning of 2020, agreeable independent opinion from independent
directors and with the verification opinion without objection issued by sponsor institution, it‘s agreed the Company to use the idle
raised fund of no more than 199 million Yuan (the amount can be rolled over) to invest in principal-protected financial products.
In March 2021, as deliberated and approved by the fifth meeting of the tenth board of directors and the fourth meeting of the tenth
board of supervisors of the company, independent directors issued agreed independent opinions, and the sponsor institution issued
non-objectionable verification opinions, agreeing that the company can use idle raised funds of no more than 120 million yuan (the
quota can be used on a rolling basis) to invest in capital-guaranteed wealth management products. This matter still needs to be
submitted to the company‘s general meeting of shareholders for review and approval.
Up to now, the unused raised funds of the Company are all deposited in the designated special account for raised funds. Purpose of
the fund-raising projects has not changed.
46
CHANGHONG MEILING CO.,LTD. Annual Report 2020
3.Change of the raised funds
√ Applicable □ Not applicable
In 10 thousand Yuan
Cumulative Investment Achieve Major changes
Corresponding Date of reach Benefit
Total raised funds Amount actually investment progress till d of project
Project after original a achieved
plans to invest invested in the amount actually end of expected feasibility
changed commitment predetermined in the
after change (1) period till end of period-end benefits after changed
item state of use Period
Period-end (2) (3)＝(2)/(1) (Y/N) (Y/N)
Production line for
freezer
the annual
intelligent
capacity of 2 12,000 4,130.143118 7,548.58941 62.90% Jane 2020 -3,670 N N
construction
million washing
project
machines(Phase II)
Supplementary the
Intelligent life
floating capital 30,584.305127 0 30,584.305127 100% -- -- -- N
project
permanently
Purchase part of Self-built part
the assets of of the assets of
4,661.73 0 0 0% -- -- Y N
intelligent R&D intelligent
project R&D project
Supplemented the
working capital
Constructed an Withdraw on
permanently with
intelligent 12,676.636264 12,676.636264 12,676.636264 100% 15 -- Y N
the surplus raised
R&D project Jan. 2020
funds of intelligent
R&D project
Total -- 59,922.671391 16,806.779382 50,809.530801 -- -- -- -- --
1. The company optimized the layout of the freezer‘s production capacity through intelligent upgrading and rebuilding, improved
the freezer‘s production capacity and efficiency, and the freezer‘s production capacity has been able to meet the market demand.
The project had not been implemented, and the feasibility of the project had undergone major changes, if the company continued to
implement the ―freezer intelligent construction project‖, it would not be able to achieve the expected economic benefits and would
Reasons for changes, face market and investment risks. Approved by the resolutions of the 24th meeting of the ninth board of directors, the 13th meeting
decision-making of the ninth board of supervisors, and the 2nd extraordinary shareholders meeting in 2019 agreed the company to change the unused
procedures and raised funds of 120 million yuan for the ―intelligent construction of freezer‖ invest in the ―production base project for annual
information disclosure production of 2 million sets of washing machines (Phase II)‖. Found more on relevant announcement (Notice No.: 2019-040,
(explain by specific 2019-041, 2019-042 and 2019-047) released on 9 July 2019 and on 26 July respectively. During the reporting period, "annual
project) production base project of 2 million washing machines (phase II)" has been put into trial production in June, 2020. Up to now, the
project has basically reached the intended serviceable state, and the acceptance of facilities and equipment has basically ended, and
the remaining payment is still in the process of payment. During the reporting period, a combination of factors such as ramp up of
capacity, impact of New Coronavirus pneumonia, sales of products, prices of bulk materials, depreciation and amortization led to
losses in the project after trial production during the current reporting period.
47
CHANGHONG MEILING CO.,LTD. Annual Report 2020
2. As the main body of the company‘s ―Intelligent life project‖, Changmei Technology used its own refrigeration equipment
manufacturing advantages to look for new paths for enterprise development. However, due to the heavy asset burden, low turnover
rate, high operation and maintenance and property costs, it sustained losses. After careful research, the company considered that the
original business model of the smart life project was no longer competitive, if the company continued to implement the investment
project with the raised funds, it would be difficult to achieve the expected investment income and may even generate greater losses.
The resolutions of the 24th meeting of the ninth board of directors of the company, the 13 th meeting of the ninth board of
supervisors, and the 2nd extraordinary shareholders‘ meeting in 2019 passed and approved the company to terminate the
implementation of the ―Intelligent life project‖ and use the remaining raised funds and financial management interest of the project
to permanently supplement the working capital. Found more on relevant announcement (Notice No.: 2019-040, 2019-041,
2019-043 and 2019-047) released on 9 July 2019 and on 26 July respectively. The company has withdrawn the remaining funds
raised and interest income from this account, a total of 305,843,051.27 yuan, to permanently supplement the company‘s working
capital. After the withdrawal, the remaining funds of the special account for the raised funds were 0 yuan, and the account was
cancelled. Meanwhile, the implement subject - Changmei Technology Co., Ltd. (hereinafter referred to as the ―Changmei
Technology‖) has been liquidated and cancelled.
3. In order to accelerate the implementation of the company‘s ―intelligent research and development projects‖, ensure the
independence of intelligent research and development technology, shorten the development cycle of intelligent products, improve
the company's research and development capabilities, and reduce the repeated investments in resources, the resolutions of the 31st
meeting of the ninth board of directors, the 16th meeting of the ninth board of supervisors, and the 4th extraordinary shareholders‘
meeting in 2019 passed and agreed the company to change the use and investment of some of the funds raised in the intelligent
R&D ability construction and Development on new products of Household Technology (hereinafter, the ―intelligent research and
development project‖), and use them to purchase intelligent infrastructure platform construction and software R & D platforms and
other R & D assets from Sichuan Changhong Electric Co., Ltd. and its subsidiaries. The pricing of the related transactions was
subject to the appraised value of the underlying asset as of September 30, 2019, and the transaction price was determined to be
46,617,300 yuan. Found more on relevant announcement (Notice No.: 2019-077, 2019-078, 2019-079 and 2019-087) released on
30 October 2019 and on 28 December respectively.
Up to now, relevant assets with the transaction involved have not been transferred, the transaction funds have not been paid.
4. As the construction of the ―intelligent research and development project‖ was completed and reached its intended use, the
resolutions of the 33rd meeting of the ninth board of directors of the company, the 17th meeting of the ninth board of supervisors,
and the 1st extraordinary shareholders‘ meeting in 2020 passed and agreed the company to close the ―intelligent research and
development project‖ and use the project‘s surplus raised funds of 125,084,220.44 yuan (including interest income of
47,970,805.20 yuan from wealth management and deposits) as of November 30, 2019 and the interest settled in the future to
permanently supplement the company‘s working capital, and the specific amount was subject to the actual balance of the special
account after deducting the balance of reserved contract and the guarantee deposit on the day the funds were transferred out. At the
same time, a total of 114,368,326.60 yuan, including the balance of the contract to be paid and the guarantee deposit would be
reserved in the fund raising account and paid in accordance with the contract agreement. Found more on relevant announcement
(Notice No.: 2019-088, 2019-089, 2019-091 and 2020-002) released on 26 December 2019 and on 11 Jan. 2020 respectively.
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 amounted to 99,576,577.04 yuan, which would continue to be used to
pay the contract balance and guarantee deposit.
Conditions and reasons "annual production base project of 2 million washing machines (phase II)" has been put into trial production in June, 2020. Up to
of failure to meet now, the project has basically reached the intended serviceable state, and the acceptance of facilities and equipment has basically
48
CHANGHONG MEILING CO.,LTD. Annual Report 2020
schedule or predicted ended, and the remaining payment is still in the process of payment. During the reporting period, a combination of factors such as
income (by specific ramp up of capacity, impact of New Coronavirus pneumonia, sales of products, prices of bulk materials, depreciation and
projects) amortization led to losses in the project after trial production during the current reporting period.
Presentation on the major
changes in project N/A
feasibility after changed
VI. Sales of major assets and equity
(i) Sales of major assets
□ Applicable √ Not applicable
No major assets are sold in the period
(ii) Sales of major equity
□ Applicable √ Not applicable
VII. Analysis of main holding company and stock-jointly companies
√ Applicable □ Not applicable
49
CHANGHONG MEILING CO.,LTD. Annual Report 2020
(i) Particular about main subsidiaries and stock-jointly companies net profit over 10%
In RMB
Company name Type Main business Register capital Total assets Net assets Operating revenue Operating profit Net profit
Zhongke Meiling Research and development,
Cryogenic Technology Subsidiary manufacturing and sales of 72,548,200 519,797,336.61 187,342,617.80 372,599,049.12 52,505,467.23 46,042,179.72
Co., Ltd. ultra-low temperature freezer
Jiangxi Meiling
Manufacturing of refrigeration
Electric Appliance Co., Subsidiary 50,000,000 272,788,771.29 118,905,342.75 799,719,795.05 15,029,794.60 15,120,453.27
and freezer
Ltd.
Mianyang Meiling Manufacturing of refrigeration
Subsidiary 100,000,000 133,244,137.78 121,488,167.08 467,203,173.04 2,011,242.27 2,044,726.95
Refrigeration Co., Ltd. and freezer
Sichuan Changhong R&D, manufacturing and
Air-conditioner Co., Subsidiary domestic sales of 850,000,000 2,667,138,918.78 1,089,203,073.93 2,865,034,256.60 -206,091,852.70 -199,691,126.79
Ltd. air-conditioning
Zhongshan Changhong R&D, manufacturing and foreign
Subsidiary 334,000,000 1,329,478,310.66 120,879,009.69 2,290,756,655.16 -7,709,902.74 -15,362,802.30
Electric Co., Ltd. sales of air-conditioning
Hefei Meiling Group
Subsidiary Sales of white goods 80,000,000 1,059,154,744.01 -138,613,658.55 4,839,921,604.80 27,836,273.95 29,189,020.65
Holdings Limited
R&D, manufacturing and sales
Changhong Meiling
of kitchen and toilet products,
Daily Electric Subsidiary 83,000,000 623,405,807.11 134,502,720.48 1,083,259,433.15 49,608,605.20 41,169,846.86
small home appliances and water
Technology Co., Ltd.
purifier
50
CHANGHONG MEILING CO.,LTD. Annual Report 2020
(ii) Subsidiary obtained and disposed in the period
√ Applicable □ Not applicable
The method of obtaining
Company name and disposing subsidiaries The influence to the whole production and performance
during the report period
A controlling subsidiary of the Company. And jointly established by the
Company and Ningbo Hongling Enterprise Management Partnership
Hefei Changhong Meiling Life Investment and (Limited Partnership) with registered capital of 50 million yuan.
Electric Co., Ltd. Establishment Establishment of the enterprise is to realize the transformation and upgrading
of the Company‘s daily electric industry and promote the rapid and sound
development of the daily electric industry
Wholly-owned subsidiary of the Company with registered capital of one
CH-Meiling International Investment and million US dollars. The enterprise was established to further enhance the
(Philippines) Inc. Establishment brand awareness of the Company‘s products in Southeast Asian countries and
expand the scale of overseas sales of the Company‘s home appliances.
Guangxi Huidian Household Minor effect on the overall production and operation and performance of the
Clearing off
Electrical Appliances Co., Ltd. company
Minor effect on the overall production and operation and performance of the
Changmei Technology Co., Ltd. Clearing off
company
Chengdu Meiling Electrical Minor effect on the overall production and operation and performance of the
Merger by absorption
Marketing Co., Ltd company
Fuzhou Meiling Electrical Marketing Minor effect on the overall production and operation and performance of the
Merger by absorption
Co., Ltd company
Nanjing Meiling Electrical Marketing Minor effect on the overall production and operation and performance of the
Merger by absorption
Co., Ltd company
Hangzhou Meiling Electrical Minor effect on the overall production and operation and performance of the
Merger by absorption
Marketing Co., Ltd company
Shanghai Meiling Electrical Minor effect on the overall production and operation and performance of the
Merger by absorption
Marketing Co., Ltd company
Beijing Meiling Electrical Marketing Minor effect on the overall production and operation and performance of the
Merger by absorption
Co., Ltd company
(iii) Description of the holding company and stock-jointly companies
The Company has no major holding and stock-jointly enterprise should be disclosed in the period
VIII. Structured entity controlled by the Company
□ Applicable √ Not applicable
IX. Future Development Prospects
51
CHANGHONG MEILING CO.,LTD. Annual Report 2020
(i) Macro environment analysis
Looking forward to 2021, the Chinese economy in the post-epidemic era will usher in a bottoming out and
rebound, but the Chinese economy will face many risks and challenges at home and abroad in the future. From the
perspective of influencing factors, weakening global economic growth, repeated epidemics at home and abroad,
and geopolitical risks, Sino-US and Sino-Australian trade frictions, exchange rate fluctuations, and the rise of
unilateral isolationism are still important factors affecting China‘s economic development. From the perspective
of economic risks, real estate price crisis, local government debt, exchange rate and currency crisis, potential risks
such as international financial transmission and withdrawal of foreign capital are increasingly becoming potential
factors that hinder the stable development of China's economy in the future.
(ii)Industry environment analysis
(1) Refrigerator (freezer) industry
The demand for household storage refrigeration driven by the epidemic has increased significantly, and the surge
in overseas demand has led to a significant increase in the dependence of global refrigerator production capacity
on China. Driven by demand, the prices of raw materials once remained high and continued to rise, laying a
sufficient foundation for the price increase in the refrigerator market. At the same time, affected by the epidemic,
the share of online sales rose sharply in 2020, leading to a slight decline in the average price of the industry. In
2021, the refrigerator market is expected to increase the average price of all channels. All View Cloud (AVC)
forecast data shows that in 2021, the refrigerator market will have a retail volume of 33.21 million units, a
year-on-year increase of 2.5%; retail sales will be 91.9 billion yuan, a year-on-year increase of 3.1%.
(2) Air-conditioning industry
In 2021, with the recovering of real estate market, new demand for air conditioners is expected to improve.
According to statistic data from All View Cloud, in the domestic air-conditioning market with a high inventory of
over 450 million units, renewal demand has become a strong guarantee for future demand, combined with the
historical annual rules of the air-conditioning market, air conditioners shall always usher in a sales bumper year
for every 3-4 years. AVC predicts that the retail volume of China's air-conditioning market will be 59.24 million
units in 2021, a year-on-year increase of 15.7%, and retail sales of 195.3 billion yuan, a year-on-year increase of
26.5%.
(3) Washing machine industry
In recent years, the washing machine market has tended to a period of stock consolidation, the market demand is
mainly for upgrading, and insufficient demand has become the norm in the industry. Especially under the
influence of the COVID-19 epidemic, the overall growth rate of the industry has declined. Given that the domestic
epidemic situation is becoming more stable, the possibility of a large-scale outbreak is very small, and at the same
time, due to the stable market demand for washing machine replacement and the steady pace of product iteration,
it is expected that the washing machine market in 2021 will show continued stability in the market, continuous
channel transfer, and continuous structural upgrade.
52
CHANGHONG MEILING CO.,LTD. Annual Report 2020
(4) Kitchen & bathroom, small appliance
In terms of the kitchen appliance industry, under the influence of the COVID-19 epidemic, due to the restrictions
on logistics, channels, installation and other factors, it has fallen into a negative growth in 2020. However, the
epidemic has also given millions of families time and space to cook, awakening people's love and enthusiasm for
cooking. At the same time, the health needs spawned by the epidemic have also created powerful new links
between companies and consumers.
In terms of the small home appliance industry, from the channel level, the arrival of the epidemic has led to the
rapid development of online channels and the maturity of live streaming sales, and online channels have become
the main sales channels for small home appliances. From the perspective of category, consumption continues to
escalate and the population is continuously subdivided, resulting in a diversified demand. Many emerging small
home appliances categories emerge after the epidemic, injecting new opportunities into the small home appliance
market.
(5) Biomedical
At present, domestic brands in our country's medical device industry have a relatively low market share, and there
is still a large room for import substitution. In recent years, in order to promote the development of domestic
medical equipment, the supervisory authorities have introduced a number of measures to encourage the purchase
of domestic equipment, which is expected to promote the import substitution process of domestic medical
equipment. The COVID-19 epidemic has placed the construction of our country's public health system in a
prominent position, the country and many provinces and cities have introduced a series of policies and measures
to support the construction of the public health system. Under the dual factors of continuous policy promotion and
technological breakthroughs of domestic device companies, the domestic medical devices are gaining market
access at a faster rate. At the same time, as end-use customer needs change, we believe that manufacturers of
digital, automated products and comprehensive service capabilities will have an advantage in future competition.
(iii) Development strategy
1. Vision
Be a leading brand in China, World Class and respectable household appliance enterprise.
2.Strategy direction
Based on the direction of digitalization and intelligence, we will firmly takes the road of market-driven, product
leadership, efficiency breakthrough and team activation, make efforts to promote the business profitability and
healthy growth, and realize the ―Meiling Dream‖ of becoming a China leading, world-class and respectable home
appliance enterprises
(iv) Operation plan for year of 2021
1.Business objective
In 2021, the company will strive to achieve growth rate higher than the average of the industry based on benign
53
CHANGHONG MEILING CO.,LTD. Annual Report 2020
development and strive to turn the net profit attributable to the parent company from losses into gains.
2.Business policy
The company‘s operation policy for 2021 is ―market-driven, product leadership, efficiency breakthrough and team
activation‖. Focus on customers in the market, provide consumers with products with unique value, introduce a
three-tier incentive mechanism of "KPI+GPI+value sharing" in operation, and promote digital transformation and
intelligent upgrading.
Market-driven: Promote healthy development with a market driven process.
In the domestic markets, focus on raising average prices, adjusting structure, and controlling profits and losses, on
the one hand, promote high-quality goods, clarify various product business cards, focus on business cards
saturated promotion, and create product labels. On the other hand, we will unswervingly promote the
transformation of marketing organization, continue to attack online channels, strengthen e-commerce team
building, carry out digital operations, try cross-industry developing, expand distribution, develop online channels,
and increase the share of online refrigerators; while transform and upgrade offline channels, strengthen terminal
capabilities, adjust structure, and increase gross profit margin.
In the overseas markets, the guiding ideology is to carry out e-commerce transformation and embrace new media.
Make key breakthroughs in the refrigerator and washing machine business through industry benchmarking, focus
on strategic markets, key markets and potential markets, and capture market increments; accelerate brand business;
seek profit increments through cost reduction and efficiency improvement, and logistics efficiency raising. For
air-conditioning business, focus on core major customers and adjust the customer structure.
Product leadership:
Adhere to "productism" in a long term, continue to attach importance to product development, focus on users, and
provide consumers with unique value-added products.
Product competitiveness enhancement: make breakthroughs in core technology and promotie the taste, quality and
category of products to empower products and brands, create differentiated and high-profit products with Meiling
characteristics; strengthen cost and leading efficiency through "five-izations and three easy" and competitive
product benchmarking, create cost-effective hot sale products. Refrigerators focus on "fresh, thin and clean", air
conditioners focus on "extremely quiet, extremely economical, and extremely intelligent", washing machines
focus on "thin, large, simple", kitchens and small appliances focus on "water ecological household appliances and
influential brand in operational services, while biology and medical conducts product layout around " life
sciences ,cold chain and health market opportunities".
R&D capability enhancement: continue to build hard-core technology in technological creativity. With regard to
the improvement of basic R&D capabilities, drive market-oriented product development, define business entities,
and consolidate product business operations. Continue to increase R&D investment, build basic R&D capabilities
in talents, professional laboratories, IT tools, R&D knowledge, etc., optimize organization, process, and systems,
54
CHANGHONG MEILING CO.,LTD. Annual Report 2020
and continuously improve R&D per capita output, R&D cycle, and the efficiency in five-izations and three easy.
Efficiency breakthrough:
Fully promote the benchmarking, catch up with the benchmark, narrow the gap, and strive to surpass.
(1) In terms of improving the efficiency of research and development, increase the success rate of new products on
the market through accurate user research, platform and cabinet focus, the effective operation of the product
management system. Optimize the review system of the technical expert committee and improve the efficiency
tools to shorten the project development cycle.
(2) In terms of improving manufacturing efficiency, reduce manufacturing costs by improving efficiency in both
technology and management. In terms of technology, it is necessary to do a good job in key projects such as fewer
staff, lean production, foaming process innovation, and automation. In management, do a good job in important
matters such as staff stability, team activation, reduce the variable manufacturing overhead expenses per product.
(3) In terms of quality improvement, start from meeting the high-quality needs of users, always focus on
controlling quality risks, reducing quality costs, and improving quality reputation, and reduce the return rate
through strategies such as clearing out the responsibility list, high target traction, and focusing on key issues, etc. .
(4) In terms of improving capital efficiency, on the one hand, shorten the logistics and delivery time cycle, strictly
control the turnover of commercial inventory, and accelerate the turnover of factory dumps. On the other hand,
strengthen the special clean-up of credit overdue and control of the credit line, which greatly improve the capital
efficiency.
Team activation:
In order to comprehensively and effectively evaluate the performance growth of employees and encourage
employees to improve their professional competence, the company has introduced GPI (employee performance
growth indicator) evaluation on the basis of the existing KPI system, and built a three-tier incentive system of
"KPI+GPI+value sharing" to motivate employees‘ vitality, which on the one hand enhances the company's overall
competitiveness, on the other hand, pursues excellence to realize the enhancement of its own value, thereby
promotes the company's overall performance and sustainable development.
3. Market strategy
(1) Refrigerator (freezer)
In the domestic markets, we will unswervingly carry out the transformation of the marketing organization, make
"high-quality goods" + "hot sale products", increase scale, improve margins, transform and upgrade offline
channels, and improve retail channel capabilities; strengthen online channels and face and participate in the
competition.
In the overseas markets, quickly expand the scale on the premise of reasonable profits, continue to do a good job
in ―focusing on products, focusing on markets, focusing on customers‖, and improve product competitiveness
55
CHANGHONG MEILING CO.,LTD. Annual Report 2020
through continuous promotion of air cooling, inverter, and large volume products; constantly increase market
share by focusing on strategic markets, key markets, and potential markets, and constantly increase market share;
focus on strategic customers and key customers, develop potential customers, and focus and increase customer
concentration. At the same time, accelerate the development of overseas independent brand business.
(2) Air-conditioning
In the domestic markets, we pursue a benign priority, seize the opportunity to upgrade the functions of "fresh air,
self-cleaning, and comfortable air", and create a "high-quality goods" + "hot sale products" model. Develop
e-commerce, focus on the base market, fully benchmark against each other, and insist on profitable scale growth.
In the overseas markets, continue to improve operational efficiency, improve operational quality, and ensure both
scale and profit growth; make breakthroughs in product strength, fill gaps in order to find increments, adjust
structure to increase gains and losses, and upgrade platform for development; make breakthroughs in channel
construction, promote self-owned brands and exert strength in e-commerce.
(3) Washing machine
Carry out channel marketing work by centering on "strengthening O2O, consolidating foundation, and laying out
chain", and continue to expand the export business; according to the strategic choice of "excellent quality, product
differentiation", take "quality first" and "product innovation" as the quality control strategy and product
development strategy, and create Meiling washing machine "ultra-thin body", "super-large drum diameter" and
"one-key smart washing" to build the core competitiveness of products.
(4) Kitchen and bath, small household appliances
Kitchens, bathrooms, and small household appliances must implement the business ideas of "product traction,
marketing transformation, operation enhancement, and team activation", and use core product operations as the
starting point to promote the integration of research, production and marketing, open up the value chain, and
enhance product competitiveness. We will strive to achieve the goal of entering the second camp of the industry
for water heaters, and make further progress for drinking water products in 2021, so as to stabilize the level of
industry status. As for the team, we will continue to improve the self-support capabilities, and innovatively launch
small and micro support projects to activate the team.
(5) Bio-medical care
Unswervingly implement the development strategy based on the related diversification in the bio-medical field,
center on the business framework layout of life science, smart cold chain, and family health, go deep into the life
science channel system construction, promote product upgrade iterations and new technology innovation research
and development to drive services and improve efficiency; based on regular cold storage business, move towards
automated cold storage, and steadily expand smart cold chain business; promote the launch of new family health
products, and accumulate channel expansion to promote the rapid growth of the company.
The above business plan and business objectives do not represent the listed Company‘s profit forecast of 2021,
whether it can be achieved depends on the changes in market condition, the efforts of management team and other
56
CHANGHONG MEILING CO.,LTD. Annual Report 2020
factors, there are a lot of uncertainties, investors should pay special attention to it.
(v) Possible risks and countermeasures
In the face of home appliances market competition is more intense and other objective factors, the survival
environment of an enterprise will be even worse. In 2021, the Company will face risks as weak macroeconomic
growth, severe industry situation, intensified competition, rising costs, trade friction, new business models and
impact of the internet era.
1. Macroeconomic downside
The COVID-19 epidemic has caused a dramatic decline in the global economy, which will take a long time to
recover, and has restrained consumer demand for home appliances.
2. Soaring costs
From the second quarter of 2020, the global raw materials prices of bulk commodities have generally risen, and
the prices of chemicals and energy closely related to the refrigerator industry have increased more prominently.
Under the background of the impact of the epidemic and the decline in corporate operating efficiency, the prices
of black and white materials have doubled, the prices of steel plates, plastics, copper, aluminum, etc. have risen
across the board, causing production costs to continue to rise, and bringing unprecedented pressure on
profitability.
3. Impact of cross-border Internet industry and challenges of new business model
With the arrival of Internet era and artificial intelligence era, the Internet enterprises continue to cross boarder and
swarm into intelligent home fields, which intensifies competition in the industry, subversive changes may occur at
any time, and traditional household appliance enterprises are facing serious challenges.
4. Trade friction
The company pays close attention to the impact of Sino US trade frictions on its global business.
In response to the above risks, combined with the industry situation in 2021 and the shortcomings in 2020, the
company will adhere to the business policy of ―market-driven, product leadership, efficiency breakthroughs, and
team activation‖ in 2021, strengthen benchmarking, make rapid improvements, and make overall arrangement in
product, technology, and market in advance, transform the company's products to high-end and intelligent
development, while enriching the product line to create a comprehensive home appliance enterprise.
X. Reception of research, communication and interview
(i) In the report period, reception of research, communication and interview
√ Applicable □ Not applicable
Main contents of the
Time Location Way Receptio Type Basic situation index of investigation
discussion and the
57
CHANGHONG MEILING CO.,LTD. Annual Report 2020
n object information
provided
#2 reference room of
http://irm.cninfo.com.cn/ircs/company/compa
the administrative Field Guolian Operation condition
2020-9-24 Institute nyDetail?stockcode=000521&orgId=gssz000
center of the research Securities of the Company
0521
Company
Reception (times) 1
Number of hospitality 1
Number of individual reception 0
Number of other reception N/A
Whether to disclose, release or divulge material information
N
that is not publicly available (Y/N)
58
CHANGHONG MEILING CO.,LTD. Annual Report 2020
Section V. Important Events
I. Profit distribution plan of common stock and capitalizing of common reserves plan
(i) Formulation, Implementation and Adjustment of common stock Profit Distribution Policy Especially
Cash Dividend policy during the Reporting Period
√Applicable □ Not applicable
During the reporting period, the company has strictly executed the profit distribution policy in accordance with
the "Articles of Association", the formulation and implementation of the company's cash dividend policy are in
line with the provisions of "Articles of Association" and the requirements of the resolutions of shareholders'
meeting, the dividends standards and proportion have been definite and clear, relevant decision-making
procedures and mechanisms have been complete, the responsibilities of independent directors have been clear and
have played its due role, minority shareholders have had the opportunities to fully express their views and
aspirations, and the legitimate interests of minority shareholders have been maintained. In addition, the
―2018-2020 Shareholder Return Plan‖ approved by the company's board of directors and the resolutions of
shareholders‘ general meeting has made clear plans for the form and priority of profit distribution, the interval of
profit distribution, the specific conditions and proportions of cash dividends, and the specific conditions for
issuing stock dividend.
In the reporting period, the Company implemented Profit distribution plan for year of 2019, that is, distribute 0.5
Yuan (tax included) in cash for every 10 shares held by all shareholders of the Company based on total share
capital 1,044,597,881 shares dated 31 December 2019 (including 881,733,881 shares of A-share and 162,864,000
shares of B-share), cash dividend of 52,229,894.05 Yuan was distributed in total.
Special explanation on cash dividend policy
Satisfy regulations of General Meeting or requirement of Article of Association
Y
(Y/N):
Well-defined and clearly dividend standards and proportion (Y/N): Y
Completed relevant decision-making process and mechanism (Y/N): Y
Independent directors perform duties completely and play a proper role (Y/N): Y
Minority shareholders have opportunity to express opinions and demands totally and
Y
their legal rights are fully protected (Y/N):
Condition and procedures are compliance and transparent while the cash bonus
y
policy adjusted or changed (Y/N):
(ii) Profit distribution plan (pre-plan) of common stock and capitalizing of common reserves plan (pre-plan)
in latest three years (including the reporting period)
59
CHANGHONG MEILING CO.,LTD. Annual Report 2020
1. Profit distribution plan for year of 2018
Distribute 0.6 Yuan (tax included) in cash for every 10 shares held by all shareholders of the Company based on
total share capital 1,044,597,881 shares dated 31 December 2018, cash dividend of 62,675,872.86 Yuan was
distributed in total.
2. Profit distribution plan for year of 2019
Distribute 0.5 Yuan (tax included) in cash for every 10 shares held by all shareholders of the Company based on
total share capital 1,044,597,881 shares dated 31 December 2019, cash dividend of 52,229,894.05 Yuan was
distributed in total.
3. Profit distribution plan for year of 2020
Taking the total share capital on the equity registration date of the company‘s future implementation of the 2020
annual equity distribution plan minus the repurchased shares as the base, distribute cash dividends of 0.5 yuan (tax
included) for every 10 shares to all shareholders, not giving bonus shares, and not converting capital reserve in to
equity. As of the disclosure date of this report, the actual shares that can participate in the profit distribution are
1,036,208,993 shares (the company's total share capital of 1,044,597,881 shares deducting the repurchased shares
of 8,388,888 shares), and it is expected to distribute cash dividends of 51,810,449.65 yuan.
In view of the fact that the Company is implementing the share repurchase, the company will use the total share
capital on the equity registration date when the profit distribution plan is implemented in the future to deduct the
total share capital after the company repurchased the shares in the special securities account as the base, and make
adjustments for the total distribution amount based on the principle of unchanged distribution ratio. The specific
amount is subject to the actual distribution.
The pre-plan had been deliberated and approved by the board of directors, and it need to be submitted the annual
shareholders‘ general meeting of 2020 for its consideration.
(iii) Cash dividend of common stock in latest three years (including the reporting period)
In RMB
Ratio of the total
Ratio of the cash Ratio of the cash cash bonus (other
Net profit
bonus in net bonus by other ways ways included) in
attributable to
profit attributable in net profit net profit
common stock Proportion for
Year for Amount for cash to common stock attributable to Total cash bonus attributable to
shareholders of cash bonus by
bonus bonus (tax shareholders of common stock (including other common stock
listed company in other ways(i.e.
shares included) listed company shareholders of listed ways) shareholders of
consolidation share buy-backs)
contained in company contained in listed company
statement for
consolidation consolidation contained in
bonus year
statement statement consolidation
statement
2020 51,810,449.65 -85,565,716.91 -60.55% 9,929,336.18 -11.60% 61,739,785.83 -72.15%
60
CHANGHONG MEILING CO.,LTD. Annual Report 2020
2019 52,229,894.05 56,441,479.14 92.54% - - 52,229,894.05 92.54%
2018 62,675,872.86 38,658,256.97 162.13% - - 62,675,872.86 162.13%
(iv) The Company gains profits in reporting period and the retained profit of common stock shareholders
provided by parent company is positive but no plan of cash dividend proposed of common stock
□Applicable √ Not applicable
II. Profit distribution plan and capitalizing of common reserves plan for the Period
√Applicable □ Not applicable
Bonus shares for every 10-share (Share) 0
Dividends for every 10-share (RMB) (Tax included) 0.5
Shares added for every 10-share base (Share) 0
Equity base of distribution plan (Share) 1,036,208,993
Total cash dividend (RMB) (Tax included) 51,810,449.65
Cash dividend for other ways (i.e. repurchased) (RMB) 9,929,336.18
Total cash dividend (including other way) (RMB) 61,739,785.83
Profits available for distribution (RMB) 740,754,202.23
Ratio of cash dividend (including other way) in total profit distribution 100%
Cash dividend
Taking the total share capital on the equity registration date of the company‘s future implementation of the 2020 annual equity
distribution plan minus the repurchased shares as the base, distribute cash dividends of 0.5 yuan (tax included) for every 10 shares
to all shareholders, not giving bonus shares, and not converting capital reserve in to equity. As of the disclosure date of this report,
the actual shares that can participate in the profit distribution are 1,036,208,993 shares (the company's total share capital of
1,044,597,881 shares deducting the repurchased shares of 8,388,888 shares), and it is expected to distribute cash dividends of
51,810,449.65 yuan.
In view of the fact that the Company is implementing the share repurchase, the company will use the total share capital on the
equity registration date when the profit distribution plan is implemented in the future to deduct the total share capital after the
company repurchased the shares in the special securities account as the base, and make adjustments for the total distribution
amount based on the principle of unchanged distribution ratio. The specific amount is subject to the actual distribution.
Detail explanation on profit distribution or capitalization from capital public reserve
61
CHANGHONG MEILING CO.,LTD. Annual Report 2020
For year of 2020, the individual statement of the parent company show net profit of 55,779,302.33 Yuan, according to the auditing
from Shine Wing Certified Public Accountants (LLP). In accordance with relevant regulations, the retained profit at beginning of
Current Year amounted as 945,907,861.41 Yuan, deducted the 2019 profit distributed 52,229,894.05 Yuan and after extract for
statutory surplus reserve 5,577,930.23 Yuan, the retained profit in individual statement of the parent company cumulative counted
as 943,879,339.46 Yuan at end of 2019. In addition, for year of 2020, the net profit attributable to owners of parent company
amounted as -85,565,716.91 Yuan, caliber of the consolidated statement undistributed profit at the beginning of the year is
884,127,743.42 yuan, deducted the 2019 profit distributed 52,229,894.05 Yuan and after extract for statutory surplus reserve
5,577,930.23 Yuan, accumulated retained profit according to the consolidated statement at the end of 2020 counted as
740,754,202.23 Yuan.
According to relevant regulations, the company's profit distribution shall be based on the profit available for distribution of the
parent company, and shall comply with the principle of the lower of the profit available for distribution in the consolidated
statement and the parent company's statement. Therefore, the profit available for distribution in 2020 is the cumulative
undistributed profit of 740,754,202.23 yuan in the consolidated statement at the end of 2020.
Pursuit to relevant rules and regulation of Article of Association, and considering the interest of shareholders and long-term
development needs of the Company, proposed recommendations:
Taking the total share capital on the equity registration date of the company‘s future implementation of the 2020 annual equity
distribution plan minus the repurchased shares as the base, distribute cash dividends of 0.5 yuan (tax included) for every 10 shares
to all shareholders, not giving bonus shares, and not converting capital reserve in to equity. As of the disclosure date of this report,
the actual shares that can participate in the profit distribution are 1,036,208,993 shares (the company's total share capital of
1,044,597,881 shares deducting the repurchased shares of 8,388,888 shares), and it is expected to distribute cash dividends of
51,810,449.65 yuan.
In view of the fact that the Company is implementing the share repurchase, the company will use the total share capital on the
equity registration date when the profit distribution plan is implemented in the future to deduct the total share capital after the
company repurchased the shares in the special securities account as the base, and make adjustments for the total distribution
amount based on the principle of unchanged distribution ratio. The specific amount is subject to the actual distribution.
After distribution, the retained profit of the parent company amounted as 892,068,889.81 Yuan, rests of the retained profit will
carry-over for distribute in later years.
III. Implementation of commitment
(1) Commitments that the actual controller, shareholders, related party, the buyer and the company have
fulfilled during the reporting period and have not yet fulfilled by the end of reporting period
√Applicable □ Not applicable
62
CHANGHONG MEILING CO.,LTD. Annual Report 2020
Commitment Implement
Commitment Type/content Date Term
party ation
1. The acquirer shall not engage in refrigerator business or activity which Strictly
competes or will compete with business of Meiling Electrical Appliances, or Valid for long term implemente
that which has interest conflict with Meiling Electrical Appliances. d
About committed
2. The acquirer promises to apply shareholders‘ right on a legal and reasonable Strictly
Sichuan and promised in
Commitments manner and shall not take any action to limit or affect the normal operation of Valid for long term implemente
Changhong order to prevent
made in Meiling Electric. d
Electric Co., horizontal
acquisition June 12, 2007
Ltd.(hereinafter, competition in the 3. For any opportunity to engage in competing business, the acquirer will
report or equity
the ―Sichuan Acquisition advise Meiling Electric in written for engaging such business or not. If Meiling
change report
Changhong‖) Report of Hefei Electrical Appliances gives no clear written reply as to whether engaging the Strictly
Meiling Co., Ltd. competing business or not within 20 days after receipt of the aforesaid letter, it Valid for long term implemente
shall be deemed that it will not engage in such business. The acquirer will only d
engage in non-competing business provided that Meiling Electric confirms not
to or is deemed to not engage in such non-competing business.
1. It will not engage in such business or activity that competes with or has
interest conflict with that of Meiling Electric except for the action taken for
sake of Meiling Electric as required by Meiling Electrical Appliances.
Commitment 2. The Company promises to apply shareholders‘ right on a legal and
Commitment regarding to reasonable manner and shall not take any action to limit or affect the normal
Strictly
made during the Sichuan reducing and operation of Meiling Electric
June 24, 2010 Valid for long term implemente
non-public offer Changhong preventing
3. In case that Meiling Electric expects, on the basis of its existing business, to d
of 2010 competition with expand its operation scope into the business which the Company has already
Meiling Electric operated, the Company agrees to grant priority acquisition right to Meiling
Electric regarding such business if the same conditions are met, provided that
the Company is still the controlling shareholder or actual controller of Meiling
Electric
63
CHANGHONG MEILING CO.,LTD. Annual Report 2020
1. Measures will be adopted to prevent continued related transaction with
Meiling Electric: as to the related transaction that can not be prevented, it will
sign related transaction agreement with Meiling Electric under the market
Commitment
principles of ―equally paid and mutual benefit‖, and fairly determined the
regarding to
transaction price according to the market prevailing standards.
reducing and Strictly
standardizing 2. Perform the necessary obligations to make related directors and related June 24, 2010 Valid for long term implemente
related transaction shareholder abstain from voting according to relevant regulation, and observe d
with Meiling legal procedure for approving related transaction and information disclosure
Electric obligations.
3. Promise not to hurt legal interests of Meiling Electric and other shareholders
through related transaction.
Strictly
Commit to authorized Changhong Air-conditioner and Zhongshan Changhong use ―Changhong‖
November 6, 2010 Valid for long term implemente
trademark and relevant patents for free.
d
1. Commit to disclose periodic reports on a truthful, accurate, complete, fair and prompt manner, to
disclose all the information that have important influences over investors, to accept supervision
under the CSRC and Shenzhen Stock Exchange.
2. Commit to make public clarification in respect of such information that is released from any
public media and may result in misleading influences on stock price once the Company is aware of
Strictly
such information.
The Company January 7, 2011 Valid for long term implemente
3. The directors, supervisors, senior management and core technicians of the Company will accept d
opinions and criticism from the social public, and they will not trade the Company‘s securities,
directly or indirectly, with any inside information and other illegal methods. The Company
promises that the documents submitted to Shenzhen Stock Exchange exist no false statement or
material omission, and no relevant information will be disclosed during the application for listing
without prior content from Shenzhen Stock Exchange.
64
CHANGHONG MEILING CO.,LTD. Annual Report 2020
1. Since the property transfer didn‘t involve the buildings and land currently used by Changhong Strictly
Air-conditioner, Sichuan Changhong commits, upon the completion of equity transfer, to continue Valid for long term implemente
to lease such assets to Changhong Air-conditioner at market price. d
Commitment
2. After completion of this property transfer, Sichuan Changhong commits to manage to prevent
made in transfer
Sichuan new related transaction with Meiling Electric. For those which can not be prevented, Sichuan
of air December 10, 2009
Changhong Changhong commits to determine the transaction price based on market accepted methods, so as to Strictly
conditioning
ensure fairness of related transaction and protection of the interest of Meiling Electric Valid for long term implemente
assets property
3. Sichuan Changhong commits that it will not engage in air conditioning and refrigerator business d
or activity which competes or will compete with business of Meiling Electric, or that which has
interest conflict with Meiling Electric
1. Make promise not to reduce the shares of Meiling bought in every year during implementation
Three years after
Commitments of the performance incentive fund via any market ways in the later first year, which was allowed to
June 20, 2017 current shares Fulfilled
by Annual be reduced by 50% according to the laws and regulations in the second year, and the remaining
purchased
performance 50% was allowed to be reduced in the third year in accordance with the laws and regulations.
Some of the
incentive fund, From the date when
Directors,
incentive 2. The directors, supervisors and senior management promised to manage in accordance with the annual incentive
supervisors and
objects while relevant management approaches in accordance with the "Company Law", "Securities Law" and fund plan
senior executives
purchasing "The Company‘s shares held by the directors, supervisors and senior management of the listed deliberated and
of the Company as August 15, 2013, July 3, Strictly
stock of the company and its change management rules", as objects of annual performance incentive fund of approved by general
well as other 2014, July 21, 2015, implemente
Company with Meiling, including but not limited to: during his tenure, the shares transferred each year shall not meeting to 6 moths
incentive objects June 20, 2017 d
performance exceed 25% of the total number of shares held of the Company; shall not sell the shares of the after director,
incentive funds Company within six months after bought it or purchase again six months after sold it; shall not supervisor and
and owned fund transfer the shares held within six months after Dismission. senior executives
resigned
Commitments Sichuan 1. Based on market conditions and as allowed by laws and rules, multiple measures were adopted Strictly
of not to Changhong adequately to increase shareholding of Meiling Electric, so as to demonstrate its firm confidence on July 9, 2015 Valid for long term implemente
reducing the Electric Co., the PRC economy and Meiling Electric with its actual actions, maintain sound development of d
65
CHANGHONG MEILING CO.,LTD. Annual Report 2020
shares Ltd.and persons capital market and promote recovery of healthy market
acting in concert
CHANGHONG
(HK) TRADING
2. Continued to support operation and development of listed company as always and promoted the
LIMITED
achievement of Meiling Electric. It is committed to bringing steady and real return to investors.
1. I hereby undertake not to deliver interests to other entities or individuals
without consideration or at unfair conditions, nor to prejudice the Company‘s
interests by other means.
2. I hereby undertake to restrain my role related consumption behaviors.
3. I hereby undertake not to conduct any investment and consumption which is
not related to performance of duties with utilization of any company assets.
4. I hereby undertake that the remuneration system determined by the board of
Commitment on
directors or the remuneration and examination committee be linked to Till the completion
compensation of
Commitment implementation of the compensation of return measures. of projects invested
Directors and immediate
made during the 5. In case that the Company adopts share based incentive plan in future, I with the proceeds Implementi
senior executives dilution of return February 23, 2016
non-public offer hereby undertake that the exercise conditions of the incentive plan to be from this ng
of the Company arising from
in 2016 announced by the Company be linked to implementation of the compensation non-public issuance
non-public
of return measures. of shares
issuance of shares
6. For the period from the date of this commitment to the date of completion of
this non-public issuance of shares, if the CSRC makes other new regulatory
requirements on compensation of return measures and the commitment thereof,
and in case that the above commitments cannot satisfy these new requirements
from the CSRC, I hereby undertake to issue supplementary commitment in
compliance with the latest CSRC requirements.
As one of the principals responsible for compensation of return measures, I, in
case of break of the above commitments or refuse to perform the above
66
CHANGHONG MEILING CO.,LTD. Annual Report 2020
commitments, agree to receive relevant punishment or to adopt relevant
administration measures according to the systems, rules and regulations of the
CSRC and Shenzhen Stock Exchange.
1. Promise to truly, accurately, completely, fairly and timely publish periodic reports, disclose all
information that has significant impacts on the investors, and accept the supervision and
management of China Securities Regulatory Commission and the Shenzhen Stock Exchange.
2. Make commitments that the Company will publicly clarify in time after knowing any Strictly
The Company information on any public communications media that may cause misleading influence on the October 12, 2016 Valid for long term implemente
stock price d
3. The Company‘s directors, supervisors and senior executives will listen carefully to the opinions
and criticisms of the public and never use any acquired inside information and other improper
means to directly or indirectly engage in the trading activities of the Company's stock.
Perform the commitment promptly or not √ Yes □ No
If the commitment is overdue and has not
been fulfilled, the specific reasons for
Not applicable
incomplete performance and the work plan
for next step shall be explained in detail
Note: for the commitments completed and exemption for implementing in above mentioned table, the Company will not disclose in next ordinary report
67
CHANGHONG MEILING CO.,LTD. Annual Report 2020
(ii) Concerning assets or project of the Company, which has profit forecast, and reporting period still in
forecasting period, explain reasons of reaching the original profit forecast
□Applicable √ Not applicable
IV. Non-operational fund occupation from controlling shareholders and its related party
□Applicable √ Not applicable
No non-operational fund occupation from controlling shareholders and its related party in period.
Disclosure date for specific approval opinion on fund occupation from CPA: 31 March 2021
Disclosure index for specific approval opinion on fund occupation from CPA: Juchao website:
www.cninfo.com.cn-- Specific Explanation on Non-operational fund occupation and its related capital
transactions for year of 2020 of Changhong Meiling Co., Ltd.
V. Explanation from Board of Directors, Supervisory Committee and Independent Directors (if applicable)
for “Qualified Opinion” that issued by CPA
□Applicable √ Not applicable
VI. Particulars about the changes in aspect of accounting policy, estimates and calculation method
compared with the financial report of last year
√Applicable □ Not applicable
Found more details in 36. Change of major accounting policy and estimation under IV. Major accounting policy
and estimation carried in the Section XII. Financial Report
VII. Major accounting errors within reporting period that needs retrospective restatement
□Applicable √ Not applicable
No major accounting errors within reporting period that needs retrospective restatement for the Company in the
period.
VIII. Compare with last year’s financial report; explain changes in consolidation statement’s scope
√Applicable □ Not applicable
In the reporting period, the consolidated financial statements of the Company cover 31 subsidiaries, including
Sichuan Changhong Air-conditioner Co., Ltd, Zhongshan Changhong Electric Co., Ltd. And Zhongke Meiling
Cryogenic Technology Co., Ltd. etc. Compared with the previous year, during the reporting period two enterprises
are included in the consolidate scope, that is CH-Meiling International (Philippines) Inc. and Hefei Changhong
Meiling Life Electric Co., Ltd. And the subsidiary Guangxi Huidian Household Appliances Co., Ltd. and
Changmei Technology Co., Ltd. are reduced for clearing off. In addition, the subsidiaries Chengdu Meiling
Electrical Marketing Co., Ltd., Fuzhou Meiling Electrical Marketing Co., Ltd., Nanjing Meiling Electrical
Marketing Co., Ltd., Hangzhou Meiling Electrical Marketing Co., Ltd., Shanghai Meiling Electrical Marketing
68
CHANGHONG MEILING CO.,LTD. Annual Report 2020
Co., Ltd., and Beijing Meiling Electrical Marketing Co., Ltd. were decreased due to the merger.
More details can be seen in the report ―VII. Changes in the scope of the merger‖ and ―XIII. Equity in other entities‖
of ―Section XII Financial Report‖
IX. Appointment and non-reappointment (dismissal) of CPA
(i) Accounting firm appointed
Name of domestic accounting firm Shine Wing Certified Public Accountants (LLP)
Remuneration for domestic accounting firm (in 10 thousand Yuan) 131
Continuous life of auditing service for domestic accounting firm 12-year
Name of domestic CPA Li Xifu, Wang Xiaodong
Continuous life of auditing service for domestic CPA Li Xifu (4 years), Wang Xiaodong (1 year)
Name of foreign accounting firm (if applicable) N/A
Remuneration for foreign accounting firm (10 thousand Yuan) (if applicable) N/A
Continuous life of auditing service for foreign accounting firm (if applicable) N/A
Name of foreign CPA (if applicable) N/A
Continuous life of auditing service for foreign CPA (if applicable) -
(ii) Re-appointed accounting firms in this period
□Yes √ No
(iii) Appointment of internal control auditing accounting firm, financial consultant or sponsor
√Applicable □ Not applicable
In reporting period, Shine Wing Certified Public Accountants (LLP) was appointed as audit institute of internal
control for the Company, auditing charge for internal control amounting as 250,000 Yuan.
X. Particular about suspension and termination of listing after annual report disclosed
□Applicable √ Not applicable
XI. Bankruptcy reorganization
□Applicable √ Not applicable
XII. Material lawsuits and arbitration of the Company
□Applicable √ Not applicable
(i) No significant lawsuits or arbitration occurred in the reporting period.
(ii) Some other significant lawsuits and arbitration in the reporting period.
69
CHANGHONG MEILING CO.,LTD. Annual Report 2020
To maintain the independence and integrity of "Meiling" trademark and trade name, the Company carried out
serials of lawsuits, attribution and administration suits with ―Meiling‖ trademark and corporate name concerned,
please found more in 2014 first quarter report, 2014 semi-annual report, the 2014 annual report disclosed
respectively on April 19, 2014, August 12, 2014, and March 26, 2014 for the relevant progress. Up to now, in
view of the infringement to the Company‘s "Meiling" trademark and trade name, false propaganda and unfair
competition in the market, the Company has carried out many ways including administrative reports, criminal
investigation and civil litigation to fight against infringement and counterfeiting behavior in the whole country in
order to stopped the infringing behavior.
XIII. Penalty and rectification
□Applicable √ Not applicable
No penalty and rectification for the Company in reporting period.
XIV. Integrity of the company and its controlling shareholders and actual controllers
□Applicable √ Not applicable
During the reporting period, the Company and the controlling shareholders and the actual controllers have had
good reputation, and there is no large amount due unliquidated debt sentenced by the court.
XV. Implementation of the company’s stock incentive plan, employee stock ownership plan or other
employee incentives
√Applicable □ Not applicable
Implementation for performance incentive fund in 2012 to 2016
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 "" incentive "") on the 16th meeting of
the 7th board of directors and the 2012-second provisional shareholders meeting. Details were disclosed on
information disclosure media appointed by the Company as "Securities Times", "Chinese Securities Daily",
"Hong Kong Commercial Daily" and the Juchao network (www.cninfo.com.cn) on August 10, 2012 and August
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 "XII 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 Semi-Annual Report" disclosed on 15 August 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
70
CHANGHONG MEILING CO.,LTD. Annual Report 2020
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 three years, the stock all 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 31 December 2020, the total shares hold by all incentive objects due to the implementation of
performance incentive plan is 7,325,892 shares, a 0.7013% in total share capital of the Company, including
5,635,999 A-share, a 0.5395% 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 9,187,923 in
aggregate, accounting for about 0.8796% of the total share capital and 3,874,325 shares are reduced in total during
the reporting period.
Up to now, the company's 2012-2016 annual performance incentive fund plan has been implemented and the
incentive objects have strictly complied with the relevant commitments. The company will no longer disclose this
matter in the next periodic report.
XVI. Major related party transaction
(i) Related party transaction with routine operation concerned
√Applicable □ Not applicable
1. Related party transaction with routine operation concerned
71
CHANGHONG MEILING CO.,LTD. Annual Report 2020
Trading Whether
Availab
Related Related Proport limit over the Clearin
Type of transacti transaction ion in g form le
Seri Related Relationshi related Content of related Pricing on price amount similar approved approve for Date of Index of
similar
al party p transactio transaction principle (in 10 (in 10 transact (in 10 d limited related disclosure disclosure
n thousan thousand ions transact market
d Yuan) Yuan) (%) thousand or not ion
price
Yuan) (Y/N)
Plastic particles, high
gloss, epidemic Juchao Website
prevention materials, November 30, (www.cninfo.co
Spot
Sichuan Controlling R-three-terminal 2019, m.cn) No.:
Commodit exchang
Changhong shareholder voltage regulator, Marketin 34,964.5 December 2019-077, No.:
1 y 34,964.57 2.82% 60,000.00 N e, Bank --
Electric Co., and ultimate integrated circuits, g price 7 18,2019 and 2019-080, No.:
purchased acceptan
Ltd. controller R-insulated gate bipolar August 15, 2019-087, No.:
ce
transistors, steel plates, 2020 2020-056 and
plastic parts, Youku No.: 2020-062
membership cards, etc.
Juchao Website
Sichuan November 30, (www.cninfo.co
Changhong Controlling 2019, m.cn) No.:
Commodit Spot
Electronics shareholder Heatstroke prevention Marketin December 2019-077, No.:
2 y 1.78 1.78 0.00% 8,000.00 N exchang --
Holding and ultimate and cooling medicine g price 18,2019 and 2019-080, No.:
purchased e
Group Co., controller August 15, 2019-087, No.:
Ltd. 2020 2020-056 and
No.: 2020-062
Changhong Other November 30, Juchao Website
Commodit Bank
Huayi enterprise Marketin 46,880.4 2019, (www.cninfo.co
3 y Compressor, Door seal 46,880.45 3.79% 72,000.00 N acceptan --
Compressor control g price 5 December m.cn) No.:
purchased ce
Co., Ltd. under the 18,2019 and 2019-077, No.:
72
CHANGHONG MEILING CO.,LTD. Annual Report 2020
same August 15, 2019-080, No.:
controlling 2020 2019-087, No.:
shareholder 2020-056 and
and ultimate No.: 2020-062
controller
Other
Juchao Website
enterprise
November 30, (www.cninfo.co
Sichuan control Spot
2019, m.cn) No.:
Changhong under the Commodit Plastic products, exchang
Marketin 59,503.7 December 2019-077, No.:
4 Mold Plastic same y refrigerator accessories, 59,503.77 4.81% 140,000.00 N e, Bank --
g price 7 18,2019 and 2019-080, No.:
Tech. Co., controlling purchased etc. acceptan
August 15, 2019-087, No.:
Ltd. shareholder ce
2020 2020-056 and
and ultimate
No.: 2020-062
controller
Other
Juchao Website
enterprise
Base plate components, November 30, (www.cninfo.co
control Spot
Sichuan ventilation hoods, 2019, m.cn) No.:
under the Commodit exchang
Changhong compressor Marketin 23,064.4 December 2019-077, No.:
5 same y 23,064.49 1.86% 60,000.00 N e, Bank --
Jijia Fine components, brackets, g price 9 18,2019 and 2019-080, No.:
controlling purchased acceptan
Co., Ltd. pressure plates, sheet August 15, 2019-087, No.:
shareholder ce
metal parts 2020 2020-056 and
and ultimate
No.: 2020-062
controller
Sichuan Other Packing boxes, fixed November 30, Juchao Website
Changhong enterprise Commodit support blocks, cartons, Bank 2019, (www.cninfo.co
Marketin
6 Package control y foams, maintenance 6,016.51 6,016.51 0.49% 22,000.00 N acceptan -- December m.cn) No.:
g price
Printing under the purchased parts, labels, wall-hung ce 18,2019 and 2019-077, No.:
Co., Ltd. same boilers, etc. August 15, 2019-080, No.:
73
CHANGHONG MEILING CO.,LTD. Annual Report 2020
controlling 2020 2019-087, No.:
shareholder 2020-056 and
and ultimate No.: 2020-062
controller
Other
Juchao Website
enterprise
Sichuan November 30, (www.cninfo.co
control
Changhong 2019, m.cn) No.:
under the Commodit Bank
Precision Marketin December 2019-077, No.:
7 same y PCB components, etc. 1,003.39 1,003.39 0.08% 10,000.00 N acceptan --
Electronics g price 18,2019 and 2019-080, No.:
controlling purchased ce
Tech. Co., August 15, 2019-087, No.:
shareholder
Ltd. 2020 2020-056 and
and ultimate
No.: 2020-062
controller
Other
Juchao Website
enterprise
November 30, (www.cninfo.co
control
081 2019, m.cn) No.:
under the Commodit Bank
Electronic Marketin December 2019-077, No.:
8 same y Power Transformers 22.70 22.70 0.00% 8,000.00 N acceptan --
Group Co., g price 18,2019 and 2019-080, No.:
controlling purchased ce
Ltd. August 15, 2019-087, No.:
shareholder
2020 2020-056 and
and ultimate
No.: 2020-062
controller
Other November 30, Juchao Website
Spot
Guangdong enterprise 2019, (www.cninfo.co
Commodit exchang
Changhong control Epidemic prevention Marketin December m.cn) No.:
9 y 293.63 293.63 0.02% 8,000.00 N e, Bank --
Electronics under the materials, foam, carton g price 18,2019 and 2019-077, No.:
purchased acceptan
Co., Ltd. same August 15, 2019-080, No.:
ce
controlling 2020 2019-087, No.:
74
CHANGHONG MEILING CO.,LTD. Annual Report 2020
shareholder 2020-056 and
and ultimate No.: 2020-062
controller
Other
Juchao Website
Sichuan enterprise
November 30, (www.cninfo.co
Changhong control
2019, m.cn) No.:
Intelligent under the Commodit Spot
Marketin December 2019-077, No.:
10 Manufacturi same y Circuit board, mold 13.32 13.32 0.00% 8,000.00 N exchang --
g price 18,2019 and 2019-080, No.:
ng controlling purchased e
August 15, 2019-087, No.:
Technology shareholder
2020 2020-056 and
Co., Ltd. and ultimate
No.: 2020-062
controller
Other
Juchao Website
enterprise
November 30, (www.cninfo.co
control
Hefei Control board, power 2019, m.cn) No.:
under the Commodit Bank
Changhong cord, frequency Marketin December 2019-077, No.:
11 same y 632.25 632.25 0.05% 8,000.00 N acceptan --
Industrial conversion integrated g price 18,2019 and 2019-080, No.:
controlling purchased ce
Co., Ltd. board August 15, 2019-087, No.:
shareholder
2020 2020-056 and
and ultimate
No.: 2020-062
controller
Other Juchao Website
November 30,
Sichuan enterprise (www.cninfo.co
2019,
Changhong control Commodit Spot m.cn) No.:
Marketin December
12 New Energy under the y Battery 3.97 3.97 0.00% 8,000.00 N exchang -- 2019-077, No.:
g price 18,2019 and
Technology same purchased e 2019-080, No.:
August 15,
Co., Ltd. controlling 2019-087, No.:
2020
shareholder 2020-056 and
75
CHANGHONG MEILING CO.,LTD. Annual Report 2020
and ultimate No.: 2020-062
controller
Other
Juchao Website
enterprise
November 30, (www.cninfo.co
Sichuan control
2019, m.cn) No.:
Zhiyijia under the Commodit Spot
LCD TV, air Marketin December 2019-077, No.:
13 Network same y 371.14 371.14 0.03% 8,000.00 N exchang --
conditioner, egg cooker g price 18,2019 and 2019-080, No.:
Technology controlling purchased e
August 15, 2019-087, No.:
Co., Ltd. shareholder
2020 2020-056 and
and ultimate
No.: 2020-062
controller
Other
Juchao Website
enterprise
Changhong November 30, (www.cninfo.co
control
Internationa 2019, m.cn) No.:
under the Commodit Spot
l Holdings Marketin December 2019-077, No.:
14 same y Air conditioning 2,655.02 2,655.02 0.21% 8,000.00 N exchang --
(Hong g price 18,2019 and 2019-080, No.:
controlling purchased e
Kong) Co., August 15, 2019-087, No.:
shareholder
Ltd. 2020 2020-056 and
and ultimate
No.: 2020-062
controller
Other
Juchao Website
enterprise November 30,
Sichuan (www.cninfo.co
control 2019,
Changhong Commodit Bank m.cn) No.:
under the Voice components, Marketin December
15 Electronic y 1,588.38 1,588.38 0.13% 6,000.00 N acceptan -- 2019-077, No.:
same electrical components g price 18,2019 and
Products purchased ce 2019-080, No.:
controlling August 15,
Co., Ltd. 2019-087, No.:
shareholder 2020
2020-056 and
and ultimate
76
CHANGHONG MEILING CO.,LTD. Annual Report 2020
controller No.: 2020-062
Other
Juchao Website
enterprise
November 30, (www.cninfo.co
control
Sichuan 2019, m.cn) No.:
under the Commodit Spot
Jiahong Marketin December 2019-077, No.:
16 same y Exit ticket 0.03 0.03 0.00% 8,000.00 N exchang --
Industrial g price 18,2019 and 2019-080, No.:
controlling purchased e
Co., Ltd. August 15, 2019-087, No.:
shareholder
2020 2020-056 and
and ultimate
No.: 2020-062
controller
Other
Juchao Website
enterprise
November 30, (www.cninfo.co
Sichuan control Spot
WiFi module, hole 2019, m.cn) No.:
Ailian under the Commodit exchang
cover, sealing strip, Marketin December 2019-077, No.:
17 Science & same y 1,796.54 1,796.54 0.15% 8,000.00 N e, Bank --
sponge, temperature and g price 18,2019 and 2019-080, No.:
Technology controlling purchased acceptan
humidity sensor, etc. August 15, 2019-087, No.:
Co., Ltd. shareholder ce
2020 2020-056 and
and ultimate
No.: 2020-062
controller
Other
Frequency conversion Juchao Website
enterprise November 30,
Sichuan integrated board, Spot (www.cninfo.co
control 2019,
Aichuang Commodit control board, display exchang m.cn) No.:
under the Marketin 12,606.3 December
18 Science & y board, R-wifi module, 12,606.33 1.02% 18,000.00 N e, Bank -- 2019-077, No.:
same g price 3 18,2019 and
Technology purchased electric heater, acceptan 2019-080, No.:
controlling August 15,
Co., Ltd. humidifier, electric ce 2019-087, No.:
shareholder 2020
control board 2020-056 and
and ultimate
77
CHANGHONG MEILING CO.,LTD. Annual Report 2020
controller No.: 2020-062
Other
Juchao Website
enterprise
November 30, (www.cninfo.co
Hunan control
2019, m.cn) No.:
Grand-Pro under the Commodit Bank
Marketin December 2019-077, No.:
19 Intelligent same y Smart vacuum cleaner 880.73 880.73 0.07% 2,500.00 N acceptan --
g price 18,2019 and 2019-080, No.:
Tech. controlling purchased ce
August 15, 2019-087, No.:
Company shareholder
2020 2020-056 and
and ultimate
No.: 2020-062
controller
Other
Juchao Website
enterprise
November 30, (www.cninfo.co
control
Lejiayi 2019, m.cn) No.:
under the Commodit Spot
Chain Marketin December 2019-077, No.:
20 same y Moon cake gift box 0.00% 8,000.00 N exchang --
Managemen g price 0.33 0.33 18,2019 and 2019-080, No.:
controlling purchased e
t Co., Ltd. August 15, 2019-087, No.:
shareholder
2020 2020-056 and
and ultimate
No.: 2020-062
controller
Other
Juchao Website
enterprise November 30,
Guangyuan (www.cninfo.co
control 2019,
Changhong Commodit Spot m.cn) No.:
under the Marketin December
21 Electronic y Drinking fountain 0.00% 8,000.00 N exchang -- 2019-077, No.:
same g price 0.88 0.88 18,2019 and
Technology purchased e 2019-080, No.:
controlling August 15,
Co., Ltd. 2019-087, No.:
shareholder 2020
2020-056 and
and ultimate
78
CHANGHONG MEILING CO.,LTD. Annual Report 2020
controller No.: 2020-062
Other
Juchao Website
Sichuan enterprise
November 30, (www.cninfo.co
Service control
2019, m.cn) No.:
Exp. under the Commodit Spot
Marketin December 2019-077, No.:
22 Appliance same y Printed board 0.00% 8,000.00 N exchang --
g price 0.19 0.19 18,2019 and 2019-080, No.:
Service controlling purchased e
August 15, 2019-087, No.:
Chain Co., shareholder
2020 2020-056 and
Ltd. and ultimate
No.: 2020-062
controller
Juchao Website
Sichuan November 30, (www.cninfo.co
Changhong Controlling 2019, m.cn) No.:
Spot
Electronics shareholder Accept Shuttle transportation Marketin December 2019-077, No.:
23 0.11% 8,000.00 N exchang --
Holding and ultimate labor fee g price 142.86 142.86 18,2019 and 2019-080, No.:
e
Group Co., controller August 15, 2019-087, No.:
Ltd. 2020 2020-056 and
No.: 2020-062
Juchao Website
Software usage fee,
November 30, (www.cninfo.co
inspection and
Sichuan Controlling 2019, m.cn) No.:
certification fee, Spot
Changhong shareholder Accept Marketin December 2019-077, No.:
24 technical service fee, 1.00% 5,600.00 N exchang --
Electric Co., and ultimate labor g price 1,306.45 1,306.45 18,2019 and 2019-080, No.:
consulting service fee, e
Ltd. controller August 15, 2019-087, No.:
equipment
2020 2020-056 and
instrumentation fee, etc.
No.: 2020-062
79
CHANGHONG MEILING CO.,LTD. Annual Report 2020
Other
Juchao Website
enterprise
November 30, (www.cninfo.co
Sichuan control
2019, m.cn) No.:
Changhong under the Spot
Accept Transportation, storage, Marketin 41,499.1 December 2019-077, No.:
25 Minsheng same 41,499.17 33.58% 60,000.00 N exchang --
labor loading and unloading g price 7 18,2019 and 2019-080, No.:
Logistics controlling e
August 15, 2019-087, No.:
Co., Ltd. shareholder
2020 2020-056 and
and ultimate
No.: 2020-062
controller
Other
Juchao Website
enterprise
November 30, (www.cninfo.co
Sichuan control
2019, m.cn) No.:
Changhong under the Repair costs, packaging Spot
Accept Marketin December 2019-077, No.:
26 Mold Plastic same costs, mold changes, 0.03% 5,600.00 N exchang --
labor g price 44.80 44.80 18,2019 and 2019-080, No.:
Tech. Co., controlling labor costs e
August 15, 2019-087, No.:
Ltd. shareholder
2020 2020-056 and
and ultimate
No.: 2020-062
controller
Other
Juchao Website
Sichuan enterprise
November 30, (www.cninfo.co
Service control Three guarantees fee,
2019, m.cn) No.:
Exp. under the service support fee, Spot
Accept Marketin December 2019-077, No.:
27 Appliance same air conditioning 27,575.3 21.03% 35,000.00 N exchang --
labor g price 27,575.35 18,2019 and 2019-080, No.:
Service controlling installation fee, 5 e
August 15, 2019-087, No.:
Chain Co., shareholder after-sales service fee
2020 2020-056 and
Ltd. and ultimate
No.: 2020-062
controller
80
CHANGHONG MEILING CO.,LTD. Annual Report 2020
Other
Juchao Website
enterprise
Software usage fee, November 30, (www.cninfo.co
control
Sichuan hollow USO system 2019, m.cn) No.:
under the Spot
Hongxin Accept online fee, brand Marketin December 2019-077, No.:
28 same 0.09% 5,600.00 N exchang --
Software labor barcode system fee, g price 112.08 112.08 18,2019 and 2019-080, No.:
controlling e
Co., Ltd. SAP module activation August 15, 2019-087, No.:
shareholder
fee, etc. 2020 2020-056 and
and ultimate
No.: 2020-062
controller
Other
Juchao Website
enterprise
November 30, (www.cninfo.co
control
Guangdong Service support fee, 2019, m.cn) No.:
under the Spot
Changhong Accept conference room usage Marketin December 2019-077, No.:
29 same 0.04% 5,600.00 N exchang --
Electronics labor fee, information g price 49.15 49.15 18,2019 and 2019-080, No.:
controlling e
Co., Ltd. consultation fee, etc. August 15, 2019-087, No.:
shareholder
2020 2020-056 and
and ultimate
No.: 2020-062
controller
Other
Juchao Website
enterprise
November 30, (www.cninfo.co
control
Sichuan Greening expenses, 2019, m.cn) No.:
under the Spot
Jiahong Accept meal expenses, business Marketin December 2019-077, No.:
30 same 0.04% 8,000.00 N exchang --
Industrial labor activity expenses, g price 53.35 53.35 18,2019 and 2019-080, No.:
controlling e
Co., Ltd. training fee August 15, 2019-087, No.:
shareholder
2020 2020-056 and
and ultimate
No.: 2020-062
controller
81
CHANGHONG MEILING CO.,LTD. Annual Report 2020
Other
Juchao Website
enterprise
November 30, (www.cninfo.co
Sichuan control
2019, m.cn) No.:
Changhong under the Conference fee, Spot
Accept Marketin December 2019-077, No.:
31 Internationa same accommodation fee, 0.00% 8,000.00 N exchang --
labor g price 5.14 5.14 18,2019 and 2019-080, No.:
l Hotel Co., controlling business activity fee e
August 15, 2019-087, No.:
Ltd. shareholder
2020 2020-056 and
and ultimate
No.: 2020-062
controller
Other
Juchao Website
enterprise
Sichuan November 30, (www.cninfo.co
control
Changhong 2019, m.cn) No.:
under the Air tickets, travel Spot
Internationa Accept Marketin December 2019-077, No.:
32 same service fees, travel 0.02% 8,000.00 N exchang --
l Travel labor g price 24.54 24.54 18,2019 and 2019-080, No.:
controlling expenses e
Service Co., August 15, 2019-087, No.:
shareholder
Ltd. 2020 2020-056 and
and ultimate
No.: 2020-062
controller
Other
Juchao Website
enterprise
November 30, (www.cninfo.co
Sichuan control
Dormitory facility 2019, m.cn) No.:
Changhong under the Spot
Accept equipment service fee, Marketin December 2019-077, No.:
33 Property same 0.23% 8,000.00 N exchang --
labor property management g price 304.44 304.44 18,2019 and 2019-080, No.:
Services controlling e
fee August 15, 2019-087, No.:
Co., Ltd. shareholder
2020 2020-056 and
and ultimate
No.: 2020-062
controller
82
CHANGHONG MEILING CO.,LTD. Annual Report 2020
Other
Juchao Website
enterprise
November 30, (www.cninfo.co
control
Sichuan Testing and testing fees, 2019, m.cn) No.:
under the Spot
Hongwei Accept project development Marketin December 2019-077, No.:
34 same 0.33% 5,600.00 N exchang --
Technology labor fees, inspection and g price 435.97 435.97 18,2019 and 2019-080, No.:
controlling e
Co., Ltd. certification fees August 15, 2019-087, No.:
shareholder
2020 2020-056 and
and ultimate
No.: 2020-062
controller
Other
Juchao Website
enterprise
November 30, (www.cninfo.co
Sichuan control
Operating expenses, 2019, m.cn) No.:
Zhiyijia under the Spot
Accept advertising expenses, Marketin December 2019-077, No.:
35 Network same 0.01% 5,600.00 N exchang --
labor market support g price 18.56 18.56 18,2019 and 2019-080, No.:
Technology controlling e
expenses August 15, 2019-087, No.:
Co., Ltd. shareholder
2020 2020-056 and
and ultimate
No.: 2020-062
controller
Other
Juchao Website
enterprise
November 30, (www.cninfo.co
Sichuan control
2019, m.cn) No.:
Changhong under the Spot
Accept Marketin December 2019-077, No.:
36 Network same Handling fee 0.00% 5,600.00 N exchang --
labor g price 3.29 3.29 18,2019 and 2019-080, No.:
Technology controlling e
August 15, 2019-087, No.:
Co., Ltd. shareholder
2020 2020-056 and
and ultimate
No.: 2020-062
controller
83
CHANGHONG MEILING CO.,LTD. Annual Report 2020
Other
Juchao Website
Sichuan enterprise
November 30, (www.cninfo.co
Changhong control
2019, m.cn) No.:
Intelligent under the Equipment repair costs, Spot
Accept Marketin December 2019-077, No.:
37 Manufacturi same mold changes, technical 0.00% 8,000.00 N exchang --
labor g price 1.64 1.64 18,2019 and 2019-080, No.:
ng controlling cooperation e
August 15, 2019-087, No.:
Technology shareholder
2020 2020-056 and
Co., Ltd. and ultimate
No.: 2020-062
controller
Other
Juchao Website
enterprise
November 30, (www.cninfo.co
control
Sichuan 2019, m.cn) No.:
under the Spot
Changhong Accept Marketin December 2019-077, No.:
38 same Equipment repair costs 0.08% 5,600.00 N exchang --
Jijia Fine labor g price 100.21 100.21 18,2019 and 2019-080, No.:
controlling e
Co., Ltd. August 15, 2019-087, No.:
shareholder
2020 2020-056 and
and ultimate
No.: 2020-062
controller
Other
Sichuan Juchao Website
enterprise
Changhong November 30, (www.cninfo.co
control
Gerun 2019, m.cn) No.:
under the Spot
Environmen Accept Hazardous waste Marketin December 2019-077, No.:
39 same 0.01% 8,000.00 N exchang --
tal labor disposal fee g price 8.67 8.67 18,2019 and 2019-080, No.:
controlling e
Protection August 15, 2019-087, No.:
shareholder
Tech. Co., 2020 2020-056 and
and ultimate
Ltd. No.: 2020-062
controller
84
CHANGHONG MEILING CO.,LTD. Annual Report 2020
Other
Juchao Website
enterprise
November 30, (www.cninfo.co
Sichuan control
2019, m.cn) No.:
Aichuang under the Spot
Accept Project cooperation Marketin December 2019-077, No.:
40 Science & same 0.00% 8,000.00 N exchang --
labor costs g price 1.60 1.60 18,2019 and 2019-080, No.:
Technology controlling e
August 15, 2019-087, No.:
Co., Ltd. shareholder
2020 2020-056 and
and ultimate
No.: 2020-062
controller
Other
Juchao Website
enterprise
November 30, (www.cninfo.co
Sichuan control
2019, m.cn) No.:
Hongmofan under the Spot
Accept Marketin December 2019-077, No.:
41 g Network same Market support fee 0.00% 5,600.00 N exchang --
labor g price 0.21 0.21 18,2019 and 2019-080, No.:
Technology controlling e
August 15, 2019-087, No.:
Co., Ltd. shareholder
2020 2020-056 and
and ultimate
No.: 2020-062
controller
Other
Juchao Website
enterprise
November 30, (www.cninfo.co
Guangyuan control
2019, m.cn) No.:
Changhong under the Spot
Accept Labor dispatch service Marketin December 2019-077, No.:
42 Electronic same 0.05% 5,600.00 N exchang --
labor fee g price 64.03 64.03 18,2019 and 2019-080, No.:
Technology controlling e
August 15, 2019-087, No.:
Co., Ltd. shareholder
2020 2020-056 and
and ultimate
No.: 2020-062
controller
85
CHANGHONG MEILING CO.,LTD. Annual Report 2020
Juchao Website
November 30, (www.cninfo.co
Sichuan Controlling 2019, m.cn) No.:
Spot
Changhong shareholder Buy fuel Water, electricity, gas, Marketin December 2019-077, No.:
43 0.15% 60,000.00 N exchang --
Electric Co., and ultimate power etc. g price 1,845.73 1,845.73 18,2019 and 2019-080, No.:
e
Ltd. controller August 15, 2019-087, No.:
2020 2020-056 and
No.: 2020-062
Other
Juchao Website
enterprise
November 30, (www.cninfo.co
control
Changhong 2019, m.cn) No.:
under the Spot
Huayi Buy fuel Marketin December 2019-077, No.:
44 same Steam 0.00% 150.00 N exchang --
Compressor power g price 51.12 51.12 18,2019 and 2019-080, No.:
controlling e
Co., Ltd. August 15, 2019-087, No.:
shareholder
2020 2020-056 and
and ultimate
No.: 2020-062
controller
Other
Juchao Website
enterprise
November 30, (www.cninfo.co
control
Guangdong 2019, m.cn) No.:
under the Spot
Changhong Buy fuel Marketin December 2019-077, No.:
45 same Water, electricity, etc. 0.01% 8,000.00 N exchang --
Electronics power g price 112.28 112.28 18,2019 and 2019-080, No.:
controlling e
Co., Ltd. August 15, 2019-087, No.:
shareholder
2020 2020-056 and
and ultimate
No.: 2020-062
controller
86
CHANGHONG MEILING CO.,LTD. Annual Report 2020
Other
Juchao Website
enterprise
November 30, (www.cninfo.co
Hefei control
2019, m.cn) No.:
Changhong under the Spot
Buy fuel Marketin December 2019-077, No.:
46 New Energy same Electricity 0.00% 8,000.00 N exchang --
power g price 36.68 36.68 18,2019 and 2019-080, No.:
Technology controlling e
August 15, 2019-087, No.:
Co., Ltd. shareholder
2020 2020-056 and
and ultimate
No.: 2020-062
controller
Other
Juchao Website
enterprise
November 30, (www.cninfo.co
Sichuan control
2019, m.cn) No.:
Changhong under the Spot
Buy fuel Marketin December 2019-077, No.:
47 Property same Electricity 0.00% 8,000.00 N exchang --
power g price 2.08 2.08 18,2019 and 2019-080, No.:
Services controlling e
August 15, 2019-087, No.:
Co., Ltd. shareholder
2020 2020-056 and
and ultimate
No.: 2020-062
controller
Juchao Website
Isocyanate, air November 30, (www.cninfo.co
Sichuan Controlling conditioning, waste 2019, m.cn) No.:
Spot
Changhong shareholder Sales of materials, epidemic Marketin December 2019-077, No.:
48 0.07% 8,000.00 N exchang --
Electric Co., and ultimate goods prevention materials, g price 1,036.21 1,036.21 18,2019 and 2019-080, No.:
e
Ltd. controller refrigerators, small August 15, 2019-087, No.:
appliances, etc. 2020 2020-056 and
No.: 2020-062
87
CHANGHONG MEILING CO.,LTD. Annual Report 2020
Other
Juchao Website
enterprise
November 30, (www.cninfo.co
control Color plates, lower
Sichuan 2019, m.cn) No.:
under the beams, bottom plates, Spot
Changhong Sales of Marketin December 2019-077, No.:
49 same brackets, processed 0.39% 8,000.00 N exchang --
Jijia Fine goods g price 5,460.30 5,460.30 18,2019 and 2019-080, No.:
controlling materials, water e
Co., Ltd. August 15, 2019-087, No.:
shareholder purifiers
2020 2020-056 and
and ultimate
No.: 2020-062
controller
Other
Juchao Website
enterprise
November 30, (www.cninfo.co
Sichuan control
2019, m.cn) No.:
Changhong under the Refrigerator Spot
Sales of Marketin December 2019-077, No.:
50 Mold Plastic same accessories, sponge 23,483.3 1.66% 35,000.00 N exchang --
goods g price 23,483.31 18,2019 and 2019-080, No.:
Tech. Co., controlling plastic 1 e
August 15, 2019-087, No.:
Ltd. shareholder
2020 2020-056 and
and ultimate
No.: 2020-062
controller
Other
Juchao Website
enterprise
November 30, (www.cninfo.co
control Spot
Lejiayi Refrigerators, Air 2019, m.cn) No.:
under the exchang
Chain Sales of conditioning, washing Marketin December 2019-077, No.:
51 same 0.04% 19,200.00 N e, Bank --
Managemen goods machines, freezers, g price 549.82 549.82 18,2019 and 2019-080, No.:
controlling acceptan
t Co., Ltd. small appliances, etc. August 15, 2019-087, No.:
shareholder ce
2020 2020-056 and
and ultimate
No.: 2020-062
controller
88
CHANGHONG MEILING CO.,LTD. Annual Report 2020
Other
Juchao Website
enterprise
November 30, (www.cninfo.co
Sichuan control Spot
Refrigerators, Air 2019, m.cn) No.:
Zhiyijia under the exchang
Sales of conditioning, washing Marketin December 2019-077, No.:
52 Network same 436,631. 30.85% 852,000.00 N e, Bank --
goods machines, freezers, g price 436,631.26 18,2019 and 2019-080, No.:
Technology controlling 26 acceptan
small appliances, etc. August 15, 2019-087, No.:
Co., Ltd. shareholder ce
2020 2020-056 and
and ultimate
No.: 2020-062
controller
Other
Juchao Website
enterprise
November 30, (www.cninfo.co
Sichuan control
Refrigerators, Air 2019, m.cn) No.:
Changhong under the Spot
Sales of conditioning, washing Marketin December 2019-077, No.:
53 Minsheng same 2.77 2.77 0.00% 19,200.00 N exchang --
goods machines, freezers, g price 18,2019 and 2019-080, No.:
Logistics controlling e
small appliances, etc. August 15, 2019-087, No.:
Co., Ltd. shareholder
2020 2020-056 and
and ultimate
No.: 2020-062
controller
Other
Juchao Website
Sichuan enterprise
November 30, (www.cninfo.co
Service control
2019, m.cn) No.:
Exp. under the Dimensional Spot
Sales of Marketin December 2019-077, No.:
54 Appliance same accessories, Air 0.03% 19,200.00 N exchang --
goods g price 403.10 403.10 18,2019 and 2019-080, No.:
Service controlling conditioning e
August 15, 2019-087, No.:
Chain Co., shareholder
2020 2020-056 and
Ltd. and ultimate
No.: 2020-062
controller
89
CHANGHONG MEILING CO.,LTD. Annual Report 2020
Other
Sichuan Juchao Website
enterprise
Changhong November 30, (www.cninfo.co
control
Gerun 2019, m.cn) No.:
under the Spot
Environmen Sales of Marketin December 2019-077, No.:
55 same Waste materials 0.04% 6,000.00 N exchang --
tal goods g price 572.25 572.25 18,2019 and 2019-080, No.:
controlling e
Protection August 15, 2019-087, No.:
shareholder
Tech. Co., 2020 2020-056 and
and ultimate
Ltd. No.: 2020-062
controller
Other
Juchao Website
enterprise
November 30, (www.cninfo.co
control
Hefei 2019, m.cn) No.:
under the Spot
Changhong Sales of Compressor, Air Marketin December 2019-077, No.:
56 same 0.00% 19,200.00 N exchang --
Industrial goods conditioning g price 0.43 0.43 18,2019 and 2019-080, No.:
controlling e
Co., Ltd. August 15, 2019-087, No.:
shareholder
2020 2020-056 and
and ultimate
No.: 2020-062
controller
Other
Juchao Website
enterprise
November 30, (www.cninfo.co
Sichuan control
2019, m.cn) No.:
Huafeng under the Spot
Sales of Marketin December 2019-077, No.:
57 Enterprise same Air conditioning 0.00% 6,000.00 N exchang --
goods g price 4.77 4.77 18,2019 and 2019-080, No.:
Group Co., controlling e
August 15, 2019-087, No.:
Ltd. shareholder
2020 2020-056 and
and ultimate
No.: 2020-062
controller
90
CHANGHONG MEILING CO.,LTD. Annual Report 2020
Other
Juchao Website
enterprise
November 30, (www.cninfo.co
control
Sichuan 2019, m.cn) No.:
under the Spot
Changhong Sales of Marketin December 2019-077, No.:
58 same Hood, stove 0.00% 19,200.00 N exchang --
Real Estate goods g price 1.31 1.31 18,2019 and 2019-080, No.:
controlling e
Co., Ltd. August 15, 2019-087, No.:
shareholder
2020 2020-056 and
and ultimate
No.: 2020-062
controller
Other
Juchao Website
enterprise
November 30, (www.cninfo.co
control
Guangdong 2019, m.cn) No.:
under the Washing machine, Air Spot
Changhong Sales of Marketin December 2019-077, No.:
59 same conditioning, small 0.01% 19,200.00 N exchang --
Electronics goods g price 158.46 158.46 18,2019 and 2019-080, No.:
controlling appliances, etc. e
Co., Ltd. August 15, 2019-087, No.:
shareholder
2020 2020-056 and
and ultimate
No.: 2020-062
controller
Other
Juchao Website
Sichuan enterprise
November 30, (www.cninfo.co
Changhong control
2019, m.cn) No.:
Intelligent under the Spot
Sales of Marketin December 2019-077, No.:
60 Manufacturi same Boiling water machine 0.00% 6,000.00 N exchang --
goods g price 1.64 1.64 18,2019 and 2019-080, No.:
ng controlling e
August 15, 2019-087, No.:
Technology shareholder
2020 2020-056 and
Co., Ltd. and ultimate
No.: 2020-062
controller
91
CHANGHONG MEILING CO.,LTD. Annual Report 2020
Other
Juchao Website
enterprise
November 30, (www.cninfo.co
Sichuan control
2019, m.cn) No.:
Changhong under the Spot
Sales of Marketin December 2019-077, No.:
61 Power same Air conditioning 0.00% 19,200.00 N exchang --
goods g price 1.81 1.81 18,2019 and 2019-080, No.:
Source Co., controlling e
August 15, 2019-087, No.:
Ltd. shareholder
2020 2020-056 and
and ultimate
No.: 2020-062
controller
Other
Juchao Website
enterprise
November 30, (www.cninfo.co
Sichuan control
2019, m.cn) No.:
Changhong under the Spot
Sales of Eye protection lamp, Marketin December 2019-077, No.:
62 Education same -0.01% 6,000.00 N exchang --
goods Air conditioning g price -86.91 -86.91 18,2019 and 2019-080, No.:
Technology controlling e
August 15, 2019-087, No.:
Co., Ltd. shareholder
2020 2020-056 and
and ultimate
No.: 2020-062
controller
Other
Juchao Website
enterprise
November 30, (www.cninfo.co
Guangyuan control
2019, m.cn) No.:
Changhong under the Spot
Sales of Marketin December 2019-077, No.:
63 Electronic same Air conditioning 0.00% 19,200.00 N exchang --
goods g price 0.35 0.35 18,2019 and 2019-080, No.:
Technology controlling e
August 15, 2019-087, No.:
Co., Ltd. shareholder
2020 2020-056 and
and ultimate
No.: 2020-062
controller
92
CHANGHONG MEILING CO.,LTD. Annual Report 2020
Other
Juchao Website
enterprise
November 30, (www.cninfo.co
Sichuan control
2019, m.cn) No.:
Changhong under the Spot
Sales of Marketin December 2019-077, No.:
64 New Energy same Air conditioning 0.00% 6,000.00 N exchang --
goods g price 31.18 31.18 18,2019 and 2019-080, No.:
Technology controlling e
August 15, 2019-087, No.:
Co., Ltd. shareholder
2020 2020-056 and
and ultimate
No.: 2020-062
controller
Other
Juchao Website
enterprise
November 30, (www.cninfo.co
Sichuan control
2019, m.cn) No.:
Changhong under the Spot
Sales of Marketin December 2019-077, No.:
65 Internationa same Air conditioning 0.00% 6,000.00 N exchang --
goods g price 70.00 70.00 18,2019 and 2019-080, No.:
l Hotel Co., controlling e
August 15, 2019-087, No.:
Ltd. shareholder
2020 2020-056 and
and ultimate
No.: 2020-062
controller
Other
Juchao Website
enterprise
November 30, (www.cninfo.co
control
PT.CHANG 2019, m.cn) No.:
under the Spot
HONGELE Sales of Marketin December 2019-077, No.:
66 same Refrigerator 0.00% 19,200.00 N exchang --
CTRICIND goods g price 70.35 70.35 18,2019 and 2019-080, No.:
controlling e
ONESIA August 15, 2019-087, No.:
shareholder
2020 2020-056 and
and ultimate
No.: 2020-062
controller
93
CHANGHONG MEILING CO.,LTD. Annual Report 2020
Other
Juchao Website
enterprise
November 30, (www.cninfo.co
control
CHANGHO 2019, m.cn) No.:
under the Spot
NG(HK)TR Sales of Marketin December 2019-077, No.:
67 same Air conditioning 48,410.2 3.42% 150,000.00 N exchang --
ADINGLIM goods g price 48,410.22 18,2019 and 2019-080, No.:
controlling 2 e
ITED August 15, 2019-087, No.:
shareholder
2020 2020-056 and
and ultimate
No.: 2020-062
controller
Other
Juchao Website
CHANGHO enterprise
November 30, (www.cninfo.co
N control
2019, m.cn) No.:
GELECTRI under the Spot
Sales of Marketin December 2019-077, No.:
68 C same Refrigerator 14,983.1 1.06% 150,000.00 N exchang --
goods g price 14,983.14 18,2019 and 2019-080, No.:
(AUSTRAL controlling 4 e
August 15, 2019-087, No.:
IA)PTY.LT shareholder
2020 2020-056 and
D. and ultimate
No.: 2020-062
controller
Other
Juchao Website
enterprise
November 30, (www.cninfo.co
control
2019, m.cn) No.:
under the Spot
Orion.PDP. Sales of Marketin December 2019-077, No.:
69 same Refrigerator 0.19% 4,200.00 N exchang --
Co.,ltd goods g price 2,634.90 2,634.90 18,2019 and 2019-080, No.:
controlling e
August 15, 2019-087, No.:
shareholder
2020 2020-056 and
and ultimate
No.: 2020-062
controller
94
CHANGHONG MEILING CO.,LTD. Annual Report 2020
Other
Juchao Website
enterprise
November 30, (www.cninfo.co
control
2019, m.cn) No.:
Changhong under the Spot
Sales of Marketin December 2019-077, No.:
70 Europe same Refrigerator 0.39% 19,200.00 N exchang --
goods g price 5,483.90 5,483.90 18,2019 and 2019-080, No.:
Electric s.r.o controlling e
August 15, 2019-087, No.:
shareholder
2020 2020-056 and
and ultimate
No.: 2020-062
controller
Other
Juchao Website
enterprise
CHANGHO November 30, (www.cninfo.co
control
NG 2019, m.cn) No.:
under the Spot
ELECTRIC Sales of Marketin December 2019-077, No.:
71 same Refrigerator 0.08% 19,200.00 N exchang --
MIDDLE goods g price 1,158.97 1,158.97 18,2019 and 2019-080, No.:
controlling e
EAST August 15, 2019-087, No.:
shareholder
FZCO 2020 2020-056 and
and ultimate
No.: 2020-062
controller
Other
Juchao Website
enterprise
Changhong November 30, (www.cninfo.co
control
Internationa 2019, m.cn) No.:
under the Refrigerator, Air Spot
l Holdings Sales of Marketin December 2019-077, No.:
72 same conditioning, small 13,452.3 0.95% 35,000.00 N exchang --
(Hong goods g price 13,452.31 18,2019 and 2019-080, No.:
controlling appliances 1 e
Kong) Co., August 15, 2019-087, No.:
shareholder
Ltd. 2020 2020-056 and
and ultimate
No.: 2020-062
controller
95
CHANGHONG MEILING CO.,LTD. Annual Report 2020
Other
Juchao Website
enterprise
November 30, (www.cninfo.co
Sichuan control
2019, m.cn) No.:
Aichuang under the Raw materials, Spot
Sales of Marketin December 2019-077, No.:
73 Science & same photocouplers, 0.05% 6,000.00 N exchang --
goods g price 724.53 724.53 18,2019 and 2019-080, No.:
Technology controlling refrigerators e
August 15, 2019-087, No.:
Co., Ltd. shareholder
2020 2020-056 and
and ultimate
No.: 2020-062
controller
Other
Juchao Website
enterprise
November 30, (www.cninfo.co
Mianyang control
2019, m.cn) No.:
Huafeng under the Spot
Sales of Marketin December 2019-077, No.:
74 Interconnect same Air conditioning 0.00% 6,000.00 N exchang --
goods g price 20.92 20.92 18,2019 and 2019-080, No.:
Technology controlling e
August 15, 2019-087, No.:
Co., Ltd. shareholder
2020 2020-056 and
and ultimate
No.: 2020-062
controller
Other
Juchao Website
enterprise
November 30, (www.cninfo.co
Sichuan control
2019, m.cn) No.:
Hongmofan under the Spot
Sales of Marketin December 2019-077, No.:
75 g Network same Small appliances 0.00% 19,200.00 N exchang --
goods g price 1.73 1.73 18,2019 and 2019-080, No.:
Technology controlling e
August 15, 2019-087, No.:
Co., Ltd. shareholder
2020 2020-056 and
and ultimate
No.: 2020-062
controller
96
CHANGHONG MEILING CO.,LTD. Annual Report 2020
Other
Juchao Website
enterprise
November 30, (www.cninfo.co
Sichuan control
2019, m.cn) No.:
Changhong under the Spot
Providing Marketin December 2019-077, No.:
76 Mold Plastic same Labor fee 0.24% 5,600.00 N exchang --
services g price 8.01 8.01 18,2019 and 2019-080, No.:
Tech. Co., controlling e
August 15, 2019-087, No.:
Ltd. shareholder
2020 2020-056 and
and ultimate
No.: 2020-062
controller
Other
Juchao Website
enterprise
November 30, (www.cninfo.co
control
Sichuan 2019, m.cn) No.:
under the Spot
Changhong Providing Marketin December 2019-077, No.:
77 same Labor fee 0.40% 5,600.00 N exchang --
Jijia Fine services g price 13.57 13.57 18,2019 and 2019-080, No.:
controlling e
Co., Ltd. August 15, 2019-087, No.:
shareholder
2020 2020-056 and
and ultimate
No.: 2020-062
controller
Other
Juchao Website
enterprise
November 30, (www.cninfo.co
Sichuan control
2019, m.cn) No.:
Aichuang under the Spot
Providing Marketin December 2019-077, No.:
78 Science & same Technical service fee 2.64% 6,000.00 N exchang --
services g price 88.76 88.76 18,2019 and 2019-080, No.:
Technology controlling e
August 15, 2019-087, No.:
Co., Ltd. shareholder
2020 2020-056 and
and ultimate
No.: 2020-062
controller
97
CHANGHONG MEILING CO.,LTD. Annual Report 2020
Other
Juchao Website
enterprise
November 30, (www.cninfo.co
Sichuan control
2019, m.cn) No.:
Huafeng under the Spot
Providing Marketin December 2019-077, No.:
79 Enterprise same Installation fee 0.94% 6,000.00 N exchang --
services g price 31.66 31.66 18,2019 and 2019-080, No.:
Group Co., controlling e
August 15, 2019-087, No.:
Ltd. shareholder
2020 2020-056 and
and ultimate
No.: 2020-062
controller
Other
Juchao Website
enterprise
November 30, (www.cninfo.co
Sichuan control
2019, m.cn) No.:
Zhiyijia under the Spot
Providing Marketin December 2019-077, No.:
80 Network same Conference fees 0.03% 5,600.00 N exchang --
services g price 0.94 0.94 18,2019 and 2019-080, No.:
Technology controlling e
August 15, 2019-087, No.:
Co., Ltd. shareholder
2020 2020-056 and
and ultimate
No.: 2020-062
controller
Other
Juchao Website
Sichuan enterprise
November 30, (www.cninfo.co
Changhong control
2019, m.cn) No.:
Intelligent under the Spot
Providing Marketin December 2019-077, No.:
81 Manufacturi same Labor fee 1.47% 6,000.00 N exchang --
services g price 49.45 49.45 18,2019 and 2019-080, No.:
ng controlling e
August 15, 2019-087, No.:
Technology shareholder
2020 2020-056 and
Co., Ltd. and ultimate
No.: 2020-062
controller
98
CHANGHONG MEILING CO.,LTD. Annual Report 2020
Juchao Website
November 30, (www.cninfo.co
Sichuan Controlling 2019, m.cn) No.:
Spot
Changhong shareholder Providing Marketin December 2019-077, No.:
82 Labor fee 7.89% 5,600.00 N exchang --
Electric Co., and ultimate services g price 265.66 265.66 18,2019 and 2019-080, No.:
e
Ltd. controller August 15, 2019-087, No.:
2020 2020-056 and
No.: 2020-062
Other
Juchao Website
enterprise
November 30, (www.cninfo.co
Sichuan control
2019, m.cn) No.:
Changhong under the Spot
Providing Labor fee, technical Marketin December 2019-077, No.:
83 Device same 10.56 10.56 0.31% 5,600.00 N exchang --
services service fee g price 18,2019 and 2019-080, No.:
Technology controlling e
August 15, 2019-087, No.:
Co., Ltd. shareholder
2020 2020-056 and
and ultimate
No.: 2020-062
controller
Other
Juchao Website
enterprise
November 30, (www.cninfo.co
Sichuan control
2019, m.cn) No.:
Changhong under the Spot
Providing Marketin December 2019-077, No.:
84 New Energy same Labor fee 0.34% 6,000.00 N exchang --
services g price 11.39 11.39 18,2019 and 2019-080, No.:
Technology controlling e
August 15, 2019-087, No.:
Co., Ltd. shareholder
2020 2020-056 and
and ultimate
No.: 2020-062
controller
99
CHANGHONG MEILING CO.,LTD. Annual Report 2020
Other
Juchao Website
enterprise
November 30, (www.cninfo.co
Sichuan control
2019, m.cn) No.:
Changhong under the Spot
Providing Marketin December 2019-077, No.:
85 Network same Labor fee 2.94% 5,600.00 N exchang --
services g price 99.14 99.14 18,2019 and 2019-080, No.:
Technology controlling e
August 15, 2019-087, No.:
Co., Ltd. shareholder
2020 2020-056 and
and ultimate
No.: 2020-062
controller
Other
Juchao Website
enterprise
November 30, (www.cninfo.co
Mianyang control
2019, m.cn) No.:
Huafeng under the Spot
Providing Marketin December 2019-077, No.:
86 Interconnect same Installation fee 0.59% 6,000.00 N exchang --
services g price 19.94 19.94 18,2019 and 2019-080, No.:
Technology controlling e
August 15, 2019-087, No.:
Co., Ltd. shareholder
2020 2020-056 and
and ultimate
No.: 2020-062
controller
Other
Juchao Website
enterprise
November 30, (www.cninfo.co
control
Changhong 2019, m.cn) No.:
under the Spot
Huayi Providing Marketin December 2019-077, No.:
87 same Technical service fee 1.68% 72,000.00 N exchang --
Compressor services g price 56.60 56.60 18,2019 and 2019-080, No.:
controlling e
Co., Ltd. August 15, 2019-087, No.:
shareholder
2020 2020-056 and
and ultimate
No.: 2020-062
controller
100
CHANGHONG MEILING CO.,LTD. Annual Report 2020
Other
Juchao Website
enterprise
November 30, (www.cninfo.co
Sichuan control
2019, m.cn) No.:
Changhong under the Spot
Providing Marketin December 2019-077, No.:
88 Minsheng same Forklift Service 0.02% 5,600.00 N exchang --
services g price 0.71 0.71 18,2019 and 2019-080, No.:
Logistics controlling e
August 15, 2019-087, No.:
Co., Ltd. shareholder
2020 2020-056 and
and ultimate
No.: 2020-062
controller
Other
Juchao Website
enterprise
November 30, (www.cninfo.co
control
Sichuan 2019, m.cn) No.:
under the Spot
Hongxin Providing Marketin December 2019-077, No.:
89 same Consulting service fee 0.15% 5,600.00 N exchang --
Software services g price 5.04 5.04 18,2019 and 2019-080, No.:
controlling e
Co., Ltd. August 15, 2019-087, No.:
shareholder
2020 2020-056 and
and ultimate
No.: 2020-062
controller
Other
Juchao Website
enterprise
November 30, (www.cninfo.co
Sichuan control
2019, m.cn) No.:
Changhong under the Spot
Providing Marketin December 2019-077, No.:
90 Intelligent same Labor fee 1.62% 6,000.00 N exchang --
services g price 54.72 54.72 18,2019 and 2019-080, No.:
Technology controlling e
August 15, 2019-087, No.:
Co., Ltd. shareholder
2020 2020-056 and
and ultimate
No.: 2020-062
controller
101
CHANGHONG MEILING CO.,LTD. Annual Report 2020
Other
Juchao Website
enterprise
November 30, (www.cninfo.co
Sichuan control
2019, m.cn) No.:
Changhong under the Spot
Providing Marketin December 2019-077, No.:
91 Education same Labor fee 0.06% 6,000.00 N exchang --
services g price 2.17 2.17 18,2019 and 2019-080, No.:
Technology controlling e
August 15, 2019-087, No.:
Co., Ltd. shareholder
2020 2020-056 and
and ultimate
No.: 2020-062
controller
Other
Juchao Website
enterprise
November 30, (www.cninfo.co
control
Sichuan 2019, m.cn) No.:
under the Spot
Changhong Providing Marketin December 2019-077, No.:
92 same Installation fee -0.12% 5,600.00 N exchang --
Real Estate services g price -3.92 -3.92 18,2019 and 2019-080, No.:
controlling e
Co., Ltd. August 15, 2019-087, No.:
shareholder
2020 2020-056 and
and ultimate
No.: 2020-062
controller
Other
Juchao Website
enterprise
November 30, (www.cninfo.co
Sichuan control
2019, m.cn) No.:
Changhong under the Spot
Providing Technical service fee, Marketin December 2019-077, No.:
93 Internationa same 0.11% 6,000.00 N exchang --
services Maintenance fees g price 3.61 3.61 18,2019 and 2019-080, No.:
l Hotel Co., controlling e
August 15, 2019-087, No.:
Ltd. shareholder
2020 2020-056 and
and ultimate
No.: 2020-062
controller
102
CHANGHONG MEILING CO.,LTD. Annual Report 2020
Other
Juchao Website
enterprise
November 30, (www.cninfo.co
Sichuan control
2019, m.cn) No.:
Changhong under the Spot
Providing Marketin December 2019-077, No.:
94 Electronic same Service fee 35.40 35.40 1.05% 5,600.00 N exchang --
services g price 18,2019 and 2019-080, No.:
Parts Co., controlling e
August 15, 2019-087, No.:
Ltd shareholder
2020 2020-056 and
and ultimate
No.: 2020-062
controller
Other
Juchao Website
enterprise
November 30, (www.cninfo.co
control
Guangdong 2019, m.cn) No.:
under the Spot
Changhong Provide Water and electricity Marketin December 2019-077, No.:
95 same 0.00% 19,200.00 N exchang --
Electronics fuel power bills g price 3.84 3.84 18,2019 and 2019-080, No.:
controlling e
Co., Ltd. August 15, 2019-087, No.:
shareholder
2020 2020-056 and
and ultimate
No.: 2020-062
controller
Other
Juchao Website
enterprise
November 30, (www.cninfo.co
Sichuan control
2019, m.cn) No.:
Changhong under the Spot
Provide Water and electricity Marketin December 2019-077, No.:
96 Minsheng same 0.00% 19,200.00 N exchang --
fuel power bills g price 8.67 8.67 18,2019 and 2019-080, No.:
Logistics controlling e
August 15, 2019-087, No.:
Co., Ltd. shareholder
2020 2020-056 and
and ultimate
No.: 2020-062
controller
103
CHANGHONG MEILING CO.,LTD. Annual Report 2020
Other
Juchao Website
enterprise
November 30, (www.cninfo.co
control
Sichuan 2019, m.cn) No.:
under the Spot
Changhong Provide Water, electricity and Marketin December 2019-077, No.:
97 same 0.00% 19,200.00 N exchang --
Jijia Fine fuel power gas costs g price 15.87 15.87 18,2019 and 2019-080, No.:
controlling e
Co., Ltd. August 15, 2019-087, No.:
shareholder
2020 2020-056 and
and ultimate
No.: 2020-062
controller
Other
Juchao Website
enterprise
November 30, (www.cninfo.co
Sichuan control
2019, m.cn) No.:
Changhong under the Spot
Provide Water, electricity and Marketin December 2019-077, No.:
98 Mold Plastic same 0.05% 19,200.00 N exchang --
fuel power gas costs g price 726.86 726.86 18,2019 and 2019-080, No.:
Tech. Co., controlling e
August 15, 2019-087, No.:
Ltd. shareholder
2020 2020-056 and
and ultimate
No.: 2020-062
controller
Other
Juchao Website
enterprise
November 30, (www.cninfo.co
Sichuan control
2019, m.cn) No.:
Zhiyijia under the Spot
Provide Water and electricity Marketin December 2019-077, No.:
99 Network same 0.00% 19,200.00 N exchang --
fuel power bills g price 4.57 4.57 18,2019 and 2019-080, No.:
Technology controlling e
August 15, 2019-087, No.:
Co., Ltd. shareholder
2020 2020-056 and
and ultimate
No.: 2020-062
controller
104
CHANGHONG MEILING CO.,LTD. Annual Report 2020
Other
Juchao Website
enterprise
November 30, (www.cninfo.co
control
Sichuan 2019, m.cn) No.:
under the Spot
Hongwei Provide Marketin December 2019-077, No.:
100 same Energy cost 0.00% 19,200.00 N exchang --
Technology fuel power g price 0.31 0.31 18,2019 and 2019-080, No.:
controlling e
Co., Ltd. August 15, 2019-087, No.:
shareholder
2020 2020-056 and
and ultimate
No.: 2020-062
controller
Other
Juchao Website
enterprise
Sichuan November 30, (www.cninfo.co
control
Changhong 2019, m.cn) No.:
under the Spot
Precision Provide Water and electricity Marketin December 2019-077, No.:
101 same 0.00% 19,200.00 N exchang --
Electronics fuel power bills g price 1.59 1.59 18,2019 and 2019-080, No.:
controlling e
Tech. Co., August 15, 2019-087, No.:
shareholder
Ltd. 2020 2020-056 and
and ultimate
No.: 2020-062
controller
Other
Juchao Website
enterprise
November 30, (www.cninfo.co
Sichuan control
2019, m.cn) No.:
Changhong under the Spot
Provide Water and electricity Marketin December 2019-077, No.:
102 Device same 0.01% 19,200.00 N exchang --
fuel power bills g price 84.47 84.47 18,2019 and 2019-080, No.:
Technology controlling e
August 15, 2019-087, No.:
Co., Ltd. shareholder
2020 2020-056 and
and ultimate
No.: 2020-062
controller
105
CHANGHONG MEILING CO.,LTD. Annual Report 2020
Other
Juchao Website
Mianyang enterprise
November 30, (www.cninfo.co
Science & control
2019, m.cn) No.:
Technology under the Spot
Provide Water and electricity Marketin December 2019-077, No.:
103 City Big same 0.00% 19,200.00 N exchang --
fuel power bills g price 0.68 0.68 18,2019 and 2019-080, No.:
Data controlling e
August 15, 2019-087, No.:
Technology shareholder
2020 2020-056 and
Co., Ltd. and ultimate
No.: 2020-062
controller
Other
Juchao Website
enterprise
November 30, (www.cninfo.co
Sichuan control
2019, m.cn) No.:
Changhong under the Spot
Provide Water and electricity Marketin December 2019-077, No.:
104 Network same 0.00% 19,200.00 N exchang --
fuel power bills g price 0.65 0.65 18,2019 and 2019-080, No.:
Technology controlling e
August 15, 2019-087, No.:
Co., Ltd. shareholder
2020 2020-056 and
and ultimate
No.: 2020-062
controller
Other
Juchao Website
enterprise
November 30, (www.cninfo.co
control
Sichuan 2019, m.cn) No.:
under the Spot
Jiahong Provide Water and electricity Marketin December 2019-077, No.:
105 same 0.00% 6,000.00 N exchang --
Industrial fuel power bills g price 1.31 1.31 18,2019 and 2019-080, No.:
controlling e
Co., Ltd. August 15, 2019-087, No.:
shareholder
2020 2020-056 and
and ultimate
No.: 2020-062
controller
106
CHANGHONG MEILING CO.,LTD. Annual Report 2020
Other
Juchao Website
enterprise
November 30, (www.cninfo.co
control
Sichuan 2019, m.cn) No.:
under the Rent to Forklift, warehouse, Spot
Changhong Marketin December 2019-077, No.:
106 same the related apartment, plant, 5.39% 5,000.00 N exchang --
Jijia Fine g price 752.79 752.79 18,2019 and 2019-080, No.:
controlling party equipment e
Co., Ltd. August 15, 2019-087, No.:
shareholder
2020 2020-056 and
and ultimate
No.: 2020-062
controller
Other
Juchao Website
enterprise
November 30, (www.cninfo.co
Sichuan control
Warehouse, factory 2019, m.cn) No.:
Changhong under the Rent to Spot
building, apartment, Marketin December 2019-077, No.:
107 Mold Plastic same the related 6.94% 5,000.00 N exchang --
equipment, second g price 968.57 968.57 18,2019 and 2019-080, No.:
Tech. Co., controlling party e
living area August 15, 2019-087, No.:
Ltd. shareholder
2020 2020-056 and
and ultimate
No.: 2020-062
controller
Other
Juchao Website
enterprise
November 30, (www.cninfo.co
Sichuan control
Partial lease of office 2019, m.cn) No.:
Changhong under the Rent to Spot
buildings, warehouse Marketin December 2019-077, No.:
108 Minsheng same the related 1.92% 5,000.00 N exchang --
offices, factories, g price 268.07 268.07 18,2019 and 2019-080, No.:
Logistics controlling party e
apartments August 15, 2019-087, No.:
Co., Ltd. shareholder
2020 2020-056 and
and ultimate
No.: 2020-062
controller
107
CHANGHONG MEILING CO.,LTD. Annual Report 2020
Other
Juchao Website
Sichuan enterprise
November 30, (www.cninfo.co
Service control
2019, m.cn) No.:
Exp. under the Rent to Spot
Apartments, offices, Marketin December 2019-077, No.:
109 Appliance same the related 0.15% 5,000.00 N exchang --
forklifts g price 20.95 20.95 18,2019 and 2019-080, No.:
Service controlling party e
August 15, 2019-087, No.:
Chain Co., shareholder
2020 2020-056 and
Ltd. and ultimate
No.: 2020-062
controller
Other
Juchao Website
enterprise
November 30, (www.cninfo.co
control
Hefei 2019, m.cn) No.:
under the Rent to Spot
Changhong Apartment, factory Marketin December 2019-077, No.:
110 same the related 0.17% 5,000.00 N exchang --
Industrial warehouse g price 23.06 23.06 18,2019 and 2019-080, No.:
controlling party e
Co., Ltd. August 15, 2019-087, No.:
shareholder
2020 2020-056 and
and ultimate
No.: 2020-062
controller
Other
Juchao Website
enterprise
Sichuan November 30, (www.cninfo.co
control
Changhong 2019, m.cn) No.:
under the Rent to Spot
Precision Apartment, second Marketin December 2019-077, No.:
111 same the related 0.08% 5,000.00 N exchang --
Electronics living area g price 11.78 11.78 18,2019 and 2019-080, No.:
controlling party e
Tech. Co., August 15, 2019-087, No.:
shareholder
Ltd. 2020 2020-056 and
and ultimate
No.: 2020-062
controller
108
CHANGHONG MEILING CO.,LTD. Annual Report 2020
Other
Juchao Website
enterprise
November 30, (www.cninfo.co
Sichuan control
2019, m.cn) No.:
Ailian under the Rent to Spot
Marketin December 2019-077, No.:
112 Science & same the related Warehouse 0.00% 6,000.00 N exchang --
g price 0.27 0.27 18,2019 and 2019-080, No.:
Technology controlling party e
August 15, 2019-087, No.:
Co., Ltd. shareholder
2020 2020-056 and
and ultimate
No.: 2020-062
controller
Other
Juchao Website
enterprise
November 30, (www.cninfo.co
Sichuan control
2019, m.cn) No.:
Aichuang under the Rent to Spot
Marketin December 2019-077, No.:
113 Science & same the related Warehouse, forklift 0.03% 6,000.00 N exchang --
g price 3.75 3.75 18,2019 and 2019-080, No.:
Technology controlling party e
August 15, 2019-087, No.:
Co., Ltd. shareholder
2020 2020-056 and
and ultimate
No.: 2020-062
controller
Other
Juchao Website
enterprise
November 30, (www.cninfo.co
control
Sichuan 2019, m.cn) No.:
under the Rent to Spot
Hongwei Marketin December 2019-077, No.:
114 same the related Apartments, factories 0.05% 5,000.00 N exchang --
Technology g price 7.65 7.65 18,2019 and 2019-080, No.:
controlling party e
Co., Ltd. August 15, 2019-087, No.:
shareholder
2020 2020-056 and
and ultimate
No.: 2020-062
controller
109
CHANGHONG MEILING CO.,LTD. Annual Report 2020
Other
Juchao Website
enterprise
November 30, (www.cninfo.co
Sichuan control
2019, m.cn) No.:
Zhiyijia under the Rent to Spot
Marketin December 2019-077, No.:
115 Network same the related Apartments 0.15% 5,000.00 N exchang --
g price 20.94 20.94 18,2019 and 2019-080, No.:
Technology controlling party e
August 15, 2019-087, No.:
Co., Ltd. shareholder
2020 2020-056 and
and ultimate
No.: 2020-062
controller
Juchao Website
November 30, (www.cninfo.co
Sichuan Controlling 2019, m.cn) No.:
Rent to Spot
Changhong shareholder Apartments, buildings, Marketin December 2019-077, No.:
116 the related 2.06% 5,000.00 N exchang --
Electric Co., and ultimate meeting rooms g price 287.08 287.08 18,2019 and 2019-080, No.:
party e
Ltd. controller August 15, 2019-087, No.:
2020 2020-056 and
No.: 2020-062
Other
Juchao Website
enterprise
November 30, (www.cninfo.co
control
Guangdong 2019, m.cn) No.:
under the Rent to Spot
Changhong Marketin December 2019-077, No.:
117 same the related Second living area 0.11% 5,000.00 N exchang --
Electronics g price 14.91 14.91 18,2019 and 2019-080, No.:
controlling party e
Co., Ltd. August 15, 2019-087, No.:
shareholder
2020 2020-056 and
and ultimate
No.: 2020-062
controller
110
CHANGHONG MEILING CO.,LTD. Annual Report 2020
Other
Juchao Website
enterprise
November 30, (www.cninfo.co
control
Changhong 2019, m.cn) No.:
under the Rent to Spot
Huayi Marketin December 2019-077, No.:
118 same the related Warehouse 0.00% 5,000.00 N exchang --
Compressor g price 0.38 0.38 18,2019 and 2019-080, No.:
controlling party e
Co., Ltd. August 15, 2019-087, No.:
shareholder
2020 2020-056 and
and ultimate
No.: 2020-062
controller
Other
Juchao Website
enterprise
November 30, (www.cninfo.co
Sichuan control
2019, m.cn) No.:
Changhong under the Rent to Spot
Factory building, Marketin December 2019-077, No.:
119 Device same the related 1.23% 5,000.00 N exchang --
second living area g price 172.16 172.16 18,2019 and 2019-080, No.:
Technology controlling party e
August 15, 2019-087, No.:
Co., Ltd. shareholder
2020 2020-056 and
and ultimate
No.: 2020-062
controller
Juchao Website
Sichuan November 30, (www.cninfo.co
Marketin
Changhong Controlling 2019, m.cn) No.:
Rent from g Spot
Electronics shareholder December 2019-077, No.:
120 the related price/Mar 0.27% 8,000.00 N exchang --
Holding and ultimate 38.30 38.30 18,2019 and 2019-080, No.:
party ket e
Group Co., controller August 15, 2019-087, No.:
leasing
Ltd. 2020 2020-056 and
No.: 2020-062
111
CHANGHONG MEILING CO.,LTD. Annual Report 2020
Juchao Website
November 30, (www.cninfo.co
Sichuan Controlling 2019, m.cn) No.:
Rent from Spot
Changhong shareholder Factory building, office, Marketin December 2019-077, No.:
121 the related 5.29% 5,000.00 N exchang --
Electric Co., and ultimate staff dormitory g price 738.20 738.20 18,2019 and 2019-080, No.:
party e
Ltd. controller August 15, 2019-087, No.:
2020 2020-056 and
No.: 2020-062
Other
Juchao Website
enterprise
November 30, (www.cninfo.co
Chengdu control
2019, m.cn) No.:
Changhong under the Rent from Spot
Marketin December 2019-077, No.:
122 Electronic same the related Office 0.45% 5,000.00 N exchang --
g price 62.43 62.43 18,2019 and 2019-080, No.:
Technology controlling party e
August 15, 2019-087, No.:
Co., Ltd. shareholder
2020 2020-056 and
and ultimate
No.: 2020-062
controller
Other
Juchao Website
enterprise
November 30, (www.cninfo.co
control
Guangdong 2019, m.cn) No.:
under the Rent from Spot
Changhong Staff dormitory, factory Marketin December 2019-077, No.:
123 same the related 0.97% 5,000.00 N exchang --
Electronics building g price 135.27 135.27 18,2019 and 2019-080, No.:
controlling party e
Co., Ltd. August 15, 2019-087, No.:
shareholder
2020 2020-056 and
and ultimate
No.: 2020-062
controller
112
CHANGHONG MEILING CO.,LTD. Annual Report 2020
Other
Juchao Website
enterprise
November 30, (www.cninfo.co
Sichuan control
2019, m.cn) No.:
Changhong under the Rent from Spot
Marketin December 2019-077, No.:
124 Property same the related Flowers 0.01% 8,000.00 N exchang --
g price 0.93 0.93 18,2019 and 2019-080, No.:
Services controlling party e
August 15, 2019-087, No.:
Co., Ltd. shareholder
2020 2020-056 and
and ultimate
No.: 2020-062
controller
Other
Juchao Website
enterprise
November 30, (www.cninfo.co
control
Changhong 2019, m.cn) No.:
under the Rent from Spot
Huayi Marketin December 2019-077, No.:
125 same the related Staff dorm 0.04% 150.00 N exchang --
Compressor g price 5.32 5.32 18,2019 and 2019-080, No.:
controlling party e
Co., Ltd. August 15, 2019-087, No.:
shareholder
2020 2020-056 and
and ultimate
No.: 2020-062
controller
Other
Juchao Website
Sichuan enterprise Purchase
November 30, (www.cninfo.co
Changhong control /Purchase
Quality improvement 2019, m.cn) No.:
Intelligent under the and Spot
and transformation of Marketin December 2019-077, No.:
126 Manufacturi same constructi 492.02 492.02 1.37% 7,000.00 N exchang --
production lines, g price 18,2019 and 2019-080, No.:
ng controlling on of e
equipment, and balers August 15, 2019-087, No.:
Technology shareholder fixed
2020 2020-056 and
Co., Ltd. and ultimate assets
No.: 2020-062
controller
113
CHANGHONG MEILING CO.,LTD. Annual Report 2020
Other
Juchao Website
enterprise
Purchase November 30, (www.cninfo.co
control Smart production
Sichuan and 2019, m.cn) No.:
under the project, secondary Spot
Hongxin constructi Marketin December 2019-077, No.:
127 same development of WMS 61.32 61.32 0.17% 15,000.00 N exchang --
Software on of g price 18,2019 and 2019-080, No.:
controlling finished product e
Co., Ltd. fixed August 15, 2019-087, No.:
shareholder barcode system
assets 2020 2020-056 and
and ultimate
No.: 2020-062
controller
Other
Juchao Website
enterprise
November 30, (www.cninfo.co
Sichuan control
2019, m.cn) No.:
Changhong under the Purchase Spot
Marketin December 2019-077, No.:
128 Mold Plastic same of fixed Mould 165.46 165.46 0.46% 15,000.00 N exchang --
g price 18,2019 and 2019-080, No.:
Tech. Co., controlling assets e
August 15, 2019-087, No.:
Ltd. shareholder
2020 2020-056 and
and ultimate
No.: 2020-062
controller
Other
Juchao Website
enterprise
November 30, (www.cninfo.co
Sichuan control
2019, m.cn) No.:
Zhiyijia under the Purchase Spot
Projector, Air Marketin December 2019-077, No.:
129 Network same of fixed 82.05 82.05 0.23% 15,000.00 N exchang --
conditioning g price 18,2019 and 2019-080, No.:
Technology controlling assets e
August 15, 2019-087, No.:
Co., Ltd. shareholder
2020 2020-056 and
and ultimate
No.: 2020-062
controller
114
CHANGHONG MEILING CO.,LTD. Annual Report 2020
Other
Juchao Website
enterprise
Purchase November 30, (www.cninfo.co
control
Sichuan and 2019, m.cn) No.:
under the Spot
Huanyu constructi Marketin December 2019-077, No.:
130 same Plant construction 216.48 216.48 0.60% 8,000.00 N exchang --
Industrial on of g price 18,2019 and 2019-080, No.:
controlling e
Co., Ltd. fixed August 15, 2019-087, No.:
shareholder
assets 2020 2020-056 and
and ultimate
No.: 2020-062
controller
Other
Juchao Website
enterprise
Sichuan November 30, (www.cninfo.co
control
Changhong 2019, m.cn) No.:
under the Purchase Spot
Jineng Marketin December 2019-077, No.:
131 same of fixed Street lamp 4.23 4.23 0.01% 15,000.00 N exchang --
Sunshine g price 18,2019 and 2019-080, No.:
controlling assets e
Technology August 15, 2019-087, No.:
shareholder
Co., Ltd. 2020 2020-056 and
and ultimate
No.: 2020-062
controller
Other
Juchao Website
Sichuan enterprise
November 30, (www.cninfo.co
Service control
2019, m.cn) No.:
Exp. under the Purchase Spot
Air conditioning Marketin December 2019-077, No.:
132 Appliance same of fixed 0.52 0.52 0.00% 15,000.00 N exchang --
accessories g price 18,2019 and 2019-080, No.:
Service controlling assets e
August 15, 2019-087, No.:
Chain Co., shareholder
2020 2020-056 and
Ltd. and ultimate
No.: 2020-062
controller
115
CHANGHONG MEILING CO.,LTD. Annual Report 2020
Juchao Website
November 30, (www.cninfo.co
Sichuan Controlling 2019, m.cn) No.:
Sale of Spot
Changhong shareholder Marketin December 2019-077, No.:
133 fixed Power plant 3.96 3.96 2.36% 15,000.00 N exchang --
Electric Co., and ultimate g price 18,2019 and 2019-080, No.:
assets e
Ltd. controller August 15, 2019-087, No.:
2020 2020-056 and
No.: 2020-062
Other
Juchao Website
enterprise Financial
November 30, (www.cninfo.co
control leasing,
Yuanxin 2019, m.cn) No.:
under the commerci Financial leasing, Spot
Financial Marketin December 2019-077, No.:
134 same al commercial factoring 6,466.21 6,466.21 -- 6,500.00 N exchang --
Lease Co., g price 18,2019 and 2019-080, No.:
controlling factoring and billing e
Ltd. August 15, 2019-087, No.:
shareholder and bill
2020 2020-056 and
and ultimate financing
No.: 2020-062
controller
Total -- -- 833,990.12 -- -- -- -- -- -- --
Detail of sales return with
Not applicable
major amount involved
Report the actual 1. It is estimated that the related transaction amount resulted by purchasing goods (including door shell and plastic products etc.) and accepting fuel and power from Sichuan Changhong
and its subsidiary by the Company for year of 2020 was RMB 3060 million at most (tax-excluded), actually RMB 1,321,119,400 occurred in reporting period.
implementation of the daily
related transactions which 2. It is estimated that the related transaction amount resulted by purchasing goods (including compressor purchased, smart vacuum cleaner etc.) from Changhong Huayi and its
were projected about their total subsidiary by the Company for year of 2020 was RMB 745 million at most (tax-excluded), actually RMB 477,665,000 occurred in reporting period.
amount by types during the
3. It is estimated that the related transaction amount resulted by purchasing or selling equipment, software, maintenance and spare parts and molds etc. from Sichuan Changhong and its
reporting period (if applicable) subsidiary by the Company for year of 2020 was RMB 150 million at most (tax-excluded), actually RMB 3,175,400 occurred in reporting period.
116
CHANGHONG MEILING CO.,LTD. Annual Report 2020
4. It is estimated that the related transaction amount resulted by selling goods and providing fuel and power to Sichuan Changhong and its subsidiary by the Company for year of 2020
was RMB 11072 million at most (tax-excluded), actually RMB 5,521,372,600 occurred in reporting period.
5. It is estimated that the related transaction amount resulted by accepting energy, power and service from Huayi Compressor and its subsidiary by the Company for year of 2020 was
RMB 1.5 million at most (tax-excluded), actually RMB 511,200 occurred in reporting period.
6. It is estimated that the related transaction amount resulted by leasing business to Sichuan Changhong and its subsidiary by the Company for year of 2020 was RMB 50 million at most
(tax-excluded), actually RMB 34,842,400 occurred in reporting period.
7. It is estimated that the related transaction amount from domestic finished goods logistic business outsourcing to Sichuan Changhong Minsheng Logistic Co., Ltd. by the Company for
year of 2020 was RMB 600 million at most (tax-excluded), actually RMB 414,991,700 occurred in reporting period.
8. It is estimated that the related transaction amount from after sales service of domestic goods outsourcing to Sichuan Service Exp. Appliance Service Chain Co., Ltd. by the Company
for year of 2020 was RMB 350 million at most actually RMB 275,753,500 occurred in reporting period.
9. It is estimated that the related transaction amount resulted by accepting other service and labor service etc. or providing other service and labor service etc. to Sichuan Changhong and
its subsidiary by the Company for year of 2020 was RMB 56 million at most (tax-excluded), actually RMB 26,264,600 occurred in reporting period.
10. It is estimated that the related transaction amount resulted by selling goods and leasing business from Sichuan Changhong Electronics Group and its subsidiary by the Company for
year of 2020 was RMB 102 million at most (tax-excluded), actually RMB 42,403,100 occurred in reporting period.
11. It is estimated that the related transaction amount resulted by purchasing goods and receiving labor services, fuel power, leasing and purchasing equipment etc. from Sichuan
Changhong Electronics Group and its subsidiary by the Company for year of 2020 was RMB 330 million at most (tax-excluded), actually RMB 157,140,200 occurred in reporting
period.
12. It is estimated that the related transaction amount resulted by receiving finance lease, commercial factoring and financial reconciliation business etc. from Yuanxin Financial Lease
Co., Ltd. was RMB 65 million at most, actually RMB 64,662,100 occurred in reporting period.
Reasons for major differences
between trading price and Not applicable
market reference price
117
CHANGHONG MEILING CO.,LTD. Annual Report 2020
2. Related party transactions with Changhong Finance Company
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
beginning of the year to the end of the reporting period are as follows:
In RMB
Interest and
Balance at Increased in Decreased in Balance at commission
Item
year-begin Current Year Current Year year-end charge received
or paid
I. Savings in Changhong 3,702,382,630.38 40,457,214,165.6 41,361,340,787.54 2,798,256,008.52 110,131,246.67
8
Group 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 2,689,798,690.93 2,173,865,064.17 1,515,518,972.25 1,347,344.67
2.Notes discounted 638,333,179.10 2,296,064,512.81 1,588,150,718.29 1,346,246,973.62 14,477,124.87
According to the regulation of Information Disclosure Business Memorandum No. 2 - Transactions and Related Transactions of the
Shenzhen Stock Exchange, the company issued the Risk Continuous Assessment Report About Sichuan Changhong Group Finance
Co., Ltd. for the deposit, loan and other financial services that the company carried out with Changhong Finance Company during the
reporting period, and disclosed at www.cninfo.com.cn on 31 March 2021
(ii) Related transactions by assets acquisition and sold
□Applicable √ Not applicable
There are no related transactions by assets acquisition and sold in the period
118
CHANGHONG MEILING CO.,LTD. Annual Report 2020
(iii) Related party transaction of joint foreign investment
√Applicable □ Not applicable
Net assets of Net profit of
Associ Total assets of the
Registered capital the invested the invested
ation Invested invested enterprise
Co-investor Main business of the invested enterprise of the invested enterprise (10 enterprise
relatio enterprise (10 thousand
enterprise thousand (10 thousand
nship Yuan)
Yuan) Yuan)
Handle financial affairs and financing
consulting, credit verification and related
Contro
consulting and agency services for member
lling
units; assist member units in the collection
shareh
and payment of transaction funds; approved
older;
insurance agency services; provide
Sichuan other
guarantees to member handle 1,887,941,751.02
units;
Changhong compa
entrusted loans among member units; yuan (before the
Electronics nies
handle bill acceptance and discount for capital increase
Holding Group control
member units; handle internal transfer and of the company
Co., Ltd., led by Sichuan
settlement of accounts among member units and Changhong
Sichuan the Changhon
and the corresponding settlement and Huayi),
Changhong same g Group 1,664,164.67 345,497.88 8,526.50
clearing plan design; absorb member units‘ 2,693,938,365.84
Electric Co., control Finance
deposits; handle loans and financial leases yuan (after the
Ltd., ling Co., Ltd.
for member units; engage in inter-bank capital increase
Changhong shareh
lending; handle entrusted investment among of the company
Huayi older
member units; securities investment other and Changhong
Compressor and
than stock investment; buyer's credit of Huayi)
Co., Ltd. ultimat
member units' products; consumer credit of
e member units' products; spot foreign
control exchange settlement and sale business;
ling other businesses approved by the China
party Banking and Insurance Regulatory
Commission.
Progress of major projects under
construction of the invested N/A
enterprise (if applicable)
After deliberated and approved by the 27th session of 9th BOD and 3rd extraordinary shareholders general meeting of 2019 held on 10
September 2019 and 27 September, it is agreed that the company and its related party, Changhong Huayi Compressor Co., Ltd.
(hereinafter referred to as "Changhong Huayi"), respectively, will increase the capital to Changhong Finance Company by 500
million yuan with its own funds, the total capital increase will not exceed RMB 1 billion. Among the 500 million yuan of the
company's capital increase to Changhong Finance Company, 402,998,300 yuan was included in its registered capital, and 97,001,700
yuan was included in the capital reserve.
After the capital increase, the registered capital of Changhong Finance Company was changed from RMB 1,887,941,751.02 to RMB
2,693,938,365.84. After the change of registered capital and equity, Sichuan Changhong Electronics Holding Group Co., Ltd. and
Sichuan Changhong Electric Co., Ltd. hold 943,970,875.51 yuan respectively of Changhong Finance Company and account for 35.04%
119
CHANGHONG MEILING CO.,LTD. Annual Report 2020
of the shares, the company holds 402,998,307.41 yuan of Changhong Finance Company, accounting for 14.96% of the shares,
Changhong Huayi holds 402,998,307.41 yuan of Changhong Finance Company, accounting for 14.96% of the shares. During the
reporting period, the company has completed the capital increase in Changhong Finance. Found more on announcement (Notice No.:
2019-060, 2019-061, 2019-067, 2020-051 and 2020-054) released on appointed media China Securities Journal, Securities Times,
Hong Kong Commercial Daily and Juchao Website dated 10 September 2019, 27 September 2019, 28 July 2020 and 8 August 2020
respectively.
(iv) Connect of related liability and debt
√Applicable □ Not applicable
Whether has non-operational contact of related liability and debts or not
□Yes √ No
No non-operational contact of related liability or debts in Period
(v) Other related party transactions
√Applicable □ Not applicable
1. On August 14, 2020, the resolutions of the 41st meeting of the ninth board of directors and the 22nd meeting of
the ninth board of supervisors of the company approved and agreed that the company should increase the daily
related transaction amount of no more than 45 million yuan (excluding tax) from finance leasing, commercial
factoring, and financial documents and other businesses expected to be provided by Yuanxin Finance Leasing Co.,
Ltd. (hereinafter referred to as "Yuanxin Leasing") to the company and its holding subsidiaries in 2020. After this
increase, it was expected that in 2020, the total daily related transactions between the company and its subsidiaries
and Sichuan Changhong and its subsidiaries (excluding Changhong Huayi Compressor Co., Ltd.) would not
exceed 15,403 million yuan (excluding tax), in which the total amount of daily related transactions with Yuanxin
Leasing in 2020 was expected to not exceed 65 million yuan (excluding tax).
2. On October 27, 2020, the resolution of the third meeting of the company's tenth board of directors approved and
agreed that should apply to the Anhui Branch of the Export-Import Bank of China for a maximum credit line of
300 million yuan in accordance with the company's business development and financing and credit work needs,
the credit term is two years, and the types of credits include working capital loans, etc., the controlling shareholder
Sichuan Changhong provides free guarantees for the aforementioned credits, and the Company does not need to
provide counter-guarantees.
3. On December 11, 2020 and December 30, 2020, the resolutions of the 4th meeting of the 10th board of directors
of the company, the 3rd meeting of the 10th board of supervisors, and the 5th extraordinary shareholders‘ meeting of
2020 passed and approved the estimated daily related transactions amount occurred among the company and its
holding subsidiaries with the related parties in 2021 totaling no more than 151888.5 million yuan (excluding tax),
and agreed that the company and Sichuan Changhong Group Finance Co., Ltd. should continue to carry out the
financial service related transactions such as loans and deposits in 2021.
Related searches for disclosure website of interim report with major related transaction concerned
Interim report Disclosure date Website for disclosure
Resolution of the 41th session of 9th BOD (2020-56) Juchao Website:
August 15, 2020
th th
Resolution of the 22 session of 9 Supervisory Committee(2020-57) http://www.cninfo.com.cn
120
CHANGHONG MEILING CO.,LTD. Annual Report 2020
Increase the forecast announcement of daily related party transactions for year of 2020
(2020-062)
Resolution of the 3rd session of 10th BOD (2020-090)
Juchao Website:
Notice on Controlling Shareholder Provide Guarantee for the Company to Apply for October 28, 2020
http://www.cninfo.com.cn
Credit Guarantee from the Financial Institutions and Related Transactions (2020-091)
Resolution of the 4th session of 10th BOD (2020-097)
December 12, 2020; Juchao Website:
Resolution of the 3rd session of 10th Supervisory Committee(2020-098)
December 30, 2020 http://www.cninfo.com.cn
Resolution of 5th extraordinary shareholders general meeting of 2020 (2020-107)
XVII. Significant contract and implementations
(i) Entrust, contract and leasing
1. Entrust
□Applicable √ Not applicable
No entrust in Period.
2. Contract
□Applicable √ Not applicable
No contract in Period.
3. Leasing
□Applicable √ Not applicable
No leasing in the period
(ii) Major guarantee
√Applicable □ Not applicable
1. Guarantee
The guarantees provided by the company to the wholly-owned and holding subsidiaries are guarantees for
supporting bank credits generated by its production and operation. The guaranty style is the guarantee. The
company and its subsidiaries did not provide guarantees to subjects outside the scope of consolidated statements.
The company and its holding subsidiaries had no overdue external guarantees, no external guarantees involving
litigation, and no losses due to the award of the guarantee. Up to 31 December 2020, the external guarantees of
the Company and subsidiaries are as follows:
In 10 thousand Yuan
Particulars about the external guarantee of the Company and subsidiaries (Barring the guarantee for subsidiaries)
Name of Related Actual Guara Guarant Complet Guarant
Guarantee limit Actual
the Announcement guarantee ntee ee term e ee for
121
CHANGHONG MEILING CO.,LTD. Annual Report 2020
Company disclosure date date of limit type impleme related
guaranteed ntation party
happeni or not
ng
- - - - - - - - -
Total approving external Total actual occurred external
0 0
guarantee in report period (A1) guarantee in report period (A2)
Total approved external Total actual balance of external
guarantee at the end of report 0 guarantee at the end of report 0
period ( A3) period (A4)
Guarantee between the Company and the subsidiaries
Complet
Name of Guarant
Related Actual date of Actual e
the Guarantee Guarant ee for
Announcement happening (Date of guarantee Guarantee type impleme
Company limit ee term related
disclosure date signing agreement) limit ntation
guaranteed party
or not
Notice No.: Joint liability One
September 11, 2018 10,000 Y N
2018-005, 2018-009 guaranty year
and 2018-029
70,000
released on 30 Joint liability One
October 11, 2018 5,000 Y N
March, 11 May 2018 guaranty year
respectively
Joint liability One
January 22, 2019 10,000 Y N
guaranty year
Joint liability One
April 4, 2019 5,500 Y N
guaranty year
Notice No.: Joint liability One
April 30, 2019 10,000 Y N
guaranty year
Zhongshan 2019-004, 2019-006
Changhong and 2019-012 Joint liability One
130,000 May 31, 2019 5,000 Y N
Electric released on 30 Jan., guaranty year
Co., Ltd. 23 Feb. 2019
Joint liability One
respectively July 23, 2019 15,000 Y N
guaranty year
Joint liability One
August 21, 2019 2,000 Y N
guaranty year
Joint liability One
September 19, 2019 10,000 Y N
guaranty year
Joint liability One
Notice No. March 5, 2020 5,000 N N
guaranty year
2019-090, No.
Joint liability One
2020-002 released on 150,000 March 9, 2020 15,000 N N
guaranty year
26 Dec. 2019 and 11
Jan. 2020 Joint liability One
March 27, 2020 5,500 N N
guaranty year
122
CHANGHONG MEILING CO.,LTD. Annual Report 2020
Joint liability One
March 30, 2020 20,000 N N
guaranty year
Joint liability One
April 14, 2020 17,900 N N
guaranty year
Joint liability One
April 28, 2020 12,000 N N
guaranty year
Joint liability One
June 10, 2020 20,000 N N
guaranty year
Joint liability One
August 17, 2020 10,000 N N
guaranty year
Joint liability One
September 2, 2020 15,000 N N
guaranty year
Notice No.
2020-097, No.
2020-098, No.
2020-101, and No. 140,000 - - - - - -
2020-107, released
on 11 Dec. 2020 and
30 Dec. 2020
Notice No. Joint liability One
January 22, 2019 2,500 Y N
guaranty year
2019-004, No.
2019-006, No. Joint liability One
26,000 April 30, 2019 4,000 Y N
2019-012 released on guaranty year
30 Jan. 2019 and 23
Joint liability One
Feb. 2019 September 4, 2019 6,500 Y N
guaranty year
Joint liability One
April 2, 2020 3,000 N N
guaranty year
Changhong Notice No.
Joint liability One
2019-090, No. April 2, 2020 4,000 N N
Meiling guaranty year
Ridian 2020-002 released on 30,000
Joint liability One
Technolog 26 Dec. 2019 and 11 August 17, 2020 6,500 N N
guaranty year
y Co., Ltd. Jan. 2020
Joint liability One
September 2, 2020 5,000 N N
guaranty year
Notice No.
2020-097, No.
2020-098, No.
2020-101, and No. 30,000 - - - - - -
2020-107, released
on 11 Dec. 2020 and
30 Dec. 2020
123
CHANGHONG MEILING CO.,LTD. Annual Report 2020
Joint liability One
July 17, 2019 3,000 Y N
guaranty year
Notice No. Joint liability One
August 23, 2019 2,000 Y N
guaranty year
2019-004, No.
2019-006, No. Joint liability One
14,000 September 24, 2019 920 Y N
2019-012 released on guaranty year
30 Jan. 2019 and 23
Joint liability One
Feb. 2019 October 22, 2019 3,000 Y N
guaranty year
Joint liability 11
December 30, 2019 2,000 N N
guaranty months
Joint liability One
March 10, 2020 1,000 N N
guaranty year
Joint liability 9.5
Notice No. June 1, 2020 1,500 N N
Zhongke guaranty months
2019-090, No.
Meiling
2020-002, No. Joint liability 8.6
Cryogenic June 18, 2020 500 N N
2020-012, No. guaranty months
Technolog
2020-019, Joint liability One
y Co., Ltd. 18,000 August 24, 2020 2,000 N N
and No. 2020-036, guaranty year
released on 26 Dec. Joint liability One
2019, 11 Jan. 2020, September 25, 2020 3,000 N N
guaranty year
28 Mar. 2020 and 30
Joint liability One
May 2020 November 19, 2020 1,000.00 N N
guaranty year
Joint liability 9
December 25, 2020 2,000.00 N N
guaranty months
Notice No.
2020-097, No.
2020-098, No.
2020-101, and No. 26,000 - - - - - -
2020-107, released
on 11 Dec. 2020 and
30 Dec. 2020
Notice No.
2019-004, No.
Sichuan 2019-006, No. Joint liability 8
100,000 July 30, 2019 20,000.00 Y N
Changhong 2019-012 released on guaranty months
Air-conditi 30 Jan. 2019 and 23
oner Co., Feb. 2019
Ltd. Notice No.
2019-090, No. 100,000 - - - - - -
2020-002 released on
124
CHANGHONG MEILING CO.,LTD. Annual Report 2020
26 Dec. 2019 and 11
Jan. 2020
Notice No.
2020-097, No.
2020-098, No.
2020-101, and No. 100,000 - - - - - -
2020-107, released
on 11 Dec. 2020 and
30 Dec. 2020
Notice No.
2018-061, No. Joint liability One
6,264 note 1 January 10, 2019 2,062.41 Y N
2018-063 released 9 guaranty year
Nov. 2018
Notice No. Joint liability One
December 23, 2019 2,103.51 N N
2019-083, No. guaranty year
2019-084, No. Joint liability 11.4
Changhong 6,345note2 January 14, 2020 1,983.25 Y N
2019-087 released on guaranty months
RUBA
7 Dec. 2019 and 18
Trade Joint liability One
Dec. 2019 December 16, 2020 1,831.50 N N
Company guaranty year
Notice No.
2020-097, No.
2020-098, No.
5,920.38
2020-101, and No. note 3
- - - - - -
2020-107, released
on 11 Dec. 2020 and
30 Dec. 2020
Notice No. Joint liability One
January 10, 2019 5,000.00 Y N
2019-004, No. guaranty year
2019-006, No.
25,000
2019-012 released on Joint liability One
March 21, 2019 10,000.00 Y N
30 Jan. 2019 and 23 guaranty year
Jiangxi Feb. 2019
Meiling Notice No.
Electric 2019-090, No.
Joint liability One
Appliance 2020-002 released on 15,000 April 9, 2020 10,000 N N
guaranty year
Co., Ltd. 26 Dec. 2019 and 11
Jan. 2020
Notice No.
2020-097, No.
10,000 - - - - - -
2020-098, No.
2020-101, and No.
125
CHANGHONG MEILING CO.,LTD. Annual Report 2020
2020-107, released
on 11 Dec. 2020 and
30 Dec. 2020
Notice No.
2019-090, No.
Joint liability One
2020-002 released on 3,000 March 20, 2020 1,000 N N
guaranty year
Hefei 26 Dec. 2019 and 11
Meiling Jan. 2020
Nonferrous Notice No.
Metal 2020-097, No.
Products 2020-098, No.
Co., Ltd. 2020-101, and No. 3,000 - - - - - -
2020-107, released
on 11 Dec. 2020 and
30 Dec. 2020
Notice No.
2019-090, No.
Joint liability One
2020-002 released on 50,000 March 26, 2020 6,000 N N
guaranty year
26 Dec. 2019 and 11
Hefei
Jan. 2020
Meiling
Notice No.
Group
2020-097, No.
Holdings
2020-098, No.
Limited Joint liability One
2020-101, and No. 50,000 December 30, 2020 10,000.00 N N
guaranty year
2020-107, released
on 11 Dec. 2020 and
30 Dec. 2020
Hebei
Notice No.
Hongmao
2019-090, No.
Daily
2020-002 released on 4,000 - - - - - -
Appliance
26 Dec. 2019 and 11
Technolog
Jan. 2020
y Co., Ltd.
Total amount of actual occurred
Total amount of approving guarantee for
734,920.38 guarantee for subsidiaries in 316,300.67
subsidiaries in report period (B1)
report period (B2)
Total balance of actual guarantee
Total amount of approved guarantee for
755,265.38 for subsidiaries at the end of 182,835.01
subsidiaries at the end of reporting period (B3)
reporting period (B4)
Guarantee of the subsidiaries for the subsidiaries
Name of Related Actual Compl Guaran
Guarantee Actual date of Guarantee
the Announcement guarantee Guarantee type ete tee for
limit happening term
Company disclosure date limit imple related
126
CHANGHONG MEILING CO.,LTD. Annual Report 2020
guaranteed mentat party
ion or
not
- - - - - - - - -
Total amount of approving Total amount of actual occurred
guarantee for subsidiaries in report 0 guarantee for subsidiaries in report 0
period (C1) period (C2)
Total amount of approved Total balance of actual guarantee
guarantee for subsidiaries at the 0 for subsidiaries at the end of 0
end of reporting period (C3) reporting period (C4)
Total amount of guarantee of the Company (total of three abovementioned guarantee)
Total amount of approving Total amount of actual occurred
guarantee in report period 734,920.38 guarantee in report period 316,300.67
(A1+B1+C1) (A2+B2+C2)
Total amount of approved Total balance of actual guarantee at
guarantee at the end of report 755,265.38 the end of report period 182,835.01
period (A3+B3+C3) (A4+B4+C4)
Ratio of actual guarantee (A4+B4+C4) in net assets of the Company 37.67%
Including:
Amount of guarantee for shareholders, actual controller and its related parties (D) 0
The debts guarantee amount provided for the guaranteed parties whose assets-liability ratio exceed 70% directly
158,835.01
or indirectly (E)
Proportion of total amount of guarantee in net assets of the Company exceed 50% (F) 0
Total amount of the aforesaid three guarantees (D+E+F) 158,835.01
Explanations on possibly bearing joint and several liquidating responsibilities for undue guarantees (if applicable) N/A
Explanations on external guarantee against regulated procedures (if applicable) N.A
Note 1: In order to unify the currency for totaling, the exchange rate here was converted from the US dollar to the RMB 6.96 on
October 31, 2018. For details, please refer to the announcement No. 2018-063 disclosed by the company.
Note 2: In order to unify the currency for totaling, the exchange rate here was converted from the US dollar to the RMB 7.05 on
October 31, 2019. For details, please refer to the announcement No. 2019-090 disclosed by the company.
Note 3: In order to unify the currency for totaling, the exchange rate here was converted from the US dollar to the RMB 6.5782 on
November 30, 2020. For details, please refer to the announcement No. 2020-101 disclosed by the company.
The above-mentioned guarantee objects are the wholly-owned and holding subsidiaries of the Company, and these wholly-owned
and holding subsidiaries are in normal production and operation, there are no overdue loans, and the guarantee risks are controllable.
During the reporting period, the highest level of security the Company provided amounted to 7,349,203,800 Yuan by the approval,
the actual amount of guarantee is 3,163,006,700 Yuan. At the end of the reporting period, the practical guarantee balance amounted to
1,828,350,100 Yuan, accounting for the Company‘s latest net assets ratio of 37.67%.
Explanation on guarantee with composite way: Not applicable
2. Guarantee outside against the regulation
127
CHANGHONG MEILING CO.,LTD. Annual Report 2020
□Applicable √Not applicable
No guarantee outside against the regulation in Period.
(iii) Entrust others to cash asset management
1. Trust financing
√Applicable □ Not applicable
Trust financing in the period
In 10 thousand Yuan
Type Capital resources Amount for entrust Undue balance Overdue amount
Idle raised funds 45,000 0 0
Bank financing products
Own idle funds 48,500 0 0
Total 93,500 0 0
Details of the single major amount, or high-risk trust investment with low security, poor fluidity and
non-guaranteed:
√Applicable □ Not applicable
In 10 thousand Yuan
128
CHANGHONG MEILING CO.,LTD. Annual Report 2020
Amou
nt of
Refe Actua Whet
reserv
renc Actua l her Whethe
Antici e for Summary
Sou Criter e l collect appro r has
Trustee pated deval of the items
Trus rce ia for ann gains/ ed ved entrust
institution Product Amou Start Expir Capital investment incom uation and related
tee of fixing ual losses gains/ by finance
(or name type nt date y date purpose e (if of query index
type fun rewar rate in losses legal plan in
of trustee) applic withd (if
ds d of perio in proce the
able) rawin applicable)
retu d perio dure future
g (if
rn d (Y/N)
applic
able)
The structured deposit Juchao
Chengdu Idle Annua
Principal-gua product, the structural Website(ww
Branch of raise Februa May lized Not
Ban ranteed with 10,00 derivatives tied with 3.80 w.cninfo.co
Bohai d ry 21, 25, return 99.22 97.86 97.86 N/A Y applicab
k floating 0.00 the 3-month interbank % m.cn)
Bank Co., fund 2020 2020 s: le
income lending rate in (Notice No.:
Ltd s 3.80%
London (Libor) 2020-010)
This product is a
structured deposit
Mianyang
product. The spot
Economic Juchao
Idle exchange rate of US Annua
Developm Guaranteed Website(ww
raise March June dollar to Swiss franc lized Not
ent Zone Ban capital and 5,000. 3.60 w.cninfo.co
d 10, 10, is taken from the return 46 45.37 45.37 N/A Y applicab
branch of k minimum 00 % m.cn)
fund 2020 2020 quotes U.S. dollar s: le
Bank of return (Notice No.:
s drawn by EBS 3.60%
China 2020-011)
(Interbank Electronic
Limited
Trading System)
between 5 a.m.
129
CHANGHONG MEILING CO.,LTD. Annual Report 2020
Sydney time every
Monday and 5 p.m.
New York time every
Friday against Swiss
francs.
Investment of the
central bank bill in
bank market, treasury
bond, corporate
Juchao
Hefei bonds, short-term Annua
Principal-gua Idle Website(ww
Branch of April July financing, lized Not
Ban ranteed with 5,000. own 3.85 w.cninfo.co
China 20, 20, medium-term bills, return 48.66 48.12 48.12 N/A Y applicab
k floating 00 fund % m.cn)
Guangfa 2020 2020 inter-bank borrowing, s: le
income s (Notice No.:
Bank inter-bank deposits, 3.85%
2020-026)
bills or bill repurchase
etc., and interest
rate-linked option
products
Deposits embedded in
financial derivatives
Hefei absorbed by the Bank Juchao
Annua
Branch of Principal-gua Idle are linked to Website(ww
April July lized Not
Bank of Ban ranteed with 5,000. own exchange rate 3.80 w.cninfo.co
21, 21, return 48.03 48.03 48.03 N/A Y applicab
East Asia k floating 00 fund fluctuations so that % m.cn)
2020 2020 s: le
(China) income s depositors can obtain (Notice No.:
3.80%
Co., Ltd. corresponding returns 2020-026)
on the basis of certain
risks.
130
CHANGHONG MEILING CO.,LTD. Annual Report 2020
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 separating
basic deposits from
derivative
transactions. The
Mianyang
principal part raised is
Economic Juchao
included in the Annua
Developm Guaranteed Idle Website(ww
April July unified operation and lized Not
ent Zone Ban capital and 10,00 own 3.75 w.cninfo.co
23, 24, management of the return 95.83 94.52 94.52 N/A Y applicab
branch of k minimum 0.00 fund % m.cn)
2020 2020 internal funds of the s: le
Bank of return s (Notice No.:
Bank of China, and 3.75%
China 2020-027)
included in the
Limited
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
131
CHANGHONG MEILING CO.,LTD. Annual Report 2020
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
Hefei structured deposit Juchao
Annua
Branch of Principal-gua Idle funds in bank time Website(ww
May Augus lized Not
China Ban ranteed with 5,000. own deposits, and at the 3.30 w.cninfo.co
21, t 21, return 42.17 42.50 42.50 N/A Y applicab
Everbright k floating 00 fund same time invest in % m.cn)
2020 2020 s: le
Bank Co., income s financial derivative (Notice No.:
3.30%
Ltd. transactions 2020-033)
(including but not
limited to options and
swaps and other
derivative
transactions) in
domestic or
international financial
132
CHANGHONG MEILING CO.,LTD. Annual Report 2020
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 and the
bank deposit interest
together constitute the
income of structured
deposit products.
The funds collected
Mianyang Juchao
by the structured Annua
Branch of Principal-gua Idle Website(ww
May Augus deposit products are lized Not
Bank of Ban ranteed with 5,000. own 3.30 w.cninfo.co
27, t 27, included in the return 42.17 41.59 41.59 N/A Y applicab
Communic k floating 00 fund % m.cn)
2020 2020 deposit management s: le
ations Co., income s (Notice No.:
category as the 3.30%
Ltd. 2020-034)
principal
The structured deposit Juchao
Chengdu Idle Annua
Principal-gua product, the Website(ww
Branch of raise May Augus lized Not
Ban ranteed with 10,00 derivatives tied with 3.45 w.cninfo.co
Bohai d 27, t 26, return 87.21 86.01 86.01 N/A Y applicab
k floating 0.00 the 3-month interbank % m.cn)
Bank Co., fund 2020 2020 s: le
income lending rate in (Notice No.:
Ltd s 3.45%
London (Libor) 2020-035)
Mianyang Principal-gua Idle Septe The funds collected Annua Juchao
June Not
Branch of Ban ranteed with 5,000. own mber by the structured lized 3.27 Website(ww
5, 42.69 42.11 42.11 N/A Y applicab
Bank of k floating 00 fund 7, deposit products are return % w.cninfo.co
2020 le
Communic income s 2020 included in the s: m.cn)
133
CHANGHONG MEILING CO.,LTD. Annual Report 2020
ations Co., deposit management 3.27% (Notice No.:
Ltd. category as the 2020-037)
principal
This product is a
structured deposit
product, which refers
to deposits embedded
in financial derivative
products linking to
Chengdu the fluctuation of Juchao
Idle Annua
Branch of Principal-gua Septe interest rates, Website(ww
raise June lized Not
China Ban ranteed with 5,000. mber exchange rates, 3.30 w.cninfo.co
d 15, return 41.71 41.14 41.14 N/A Y applicab
CITIC k floating 00 14, indexes and other % m.cn)
fund 2020 s: le
Bank Co., income 2020 financial market (Notice No.:
s 3.30%
Ltd. objects or to the credit 2020-040)
status of an entity, so
that depositors can
obtain corresponding
benefits on the basis
of bearing certain
risks.
Deposits embedded in
Hefei Juchao
financial derivatives Annua
Branch of Principal-gua Idle Septe Website(ww
June absorbed by the Bank lized Not
Bank of Ban ranteed with 5,000. own mber 3.50 w.cninfo.co
12, are linked to return 44.24 44.24 44.24 N/A Y applicab
East Asia k floating 00 fund 11, % m.cn)
2020 exchange rate s: le
(China) income s 2020 (Notice No.:
fluctuations so that 3.50%
Limited 2020-039)
depositors can obtain
134
CHANGHONG MEILING CO.,LTD. Annual Report 2020
corresponding returns
on the 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 separating
basic deposits from
Mianyang
derivative
Economic Juchao
transactions. The Annua
Developm Guaranteed Idle Website(ww
April May principal part raised is lized Not
ent Zone Ban capital and 3,500. own 3.40 w.cninfo.co
22, 25, included in the return 10.91 10.76 10.76 N/A Y applicab
branch of k minimum 00 fund % m.cn)
2020 2020 unified operation and s: le
Bank of return s (Notice No.:
management of the 3.40%
China 2020-026)
internal funds of the
Limited
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
135
CHANGHONG MEILING CO.,LTD. Annual Report 2020
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.
Deposits embedded in
financial derivatives
Hefei absorbed by the Bank Juchao
Annua
Branch of Principal-gua Idle are linked to Website(ww
July Octob lized Not
Bank of Ban ranteed with 5,000. own exchange rate 3.40 w.cninfo.co
15, er 16, return 43.91 43.92 43.92 N/A Y applicab
East Asia k floating 00 fund fluctuations so that % m.cn)
2020 2020 s: le
(China) income s depositors can obtain (Notice No.:
3.40%
Limited corresponding returns 2020-045)
on the basis of certain
risks.
Structured deposits Juchao
Chengdu Idle Annua
Principal-gua Septe Dece refers to the business Website(ww
Branch of raise lized Not
Ban ranteed with 15,00 mber mber products that enable 2.95 110.6 109.1 109.1 w.cninfo.co
Industrial d return N/A Y applicab
k floating 0.00 15, 14, depositors to obtain % 2 1 1 m.cn)
Bank Co., fund s: le
income 2020 2020 higher returns on the (Notice No.:
Ltd. s 2.95%
basis of certain risks 2020-068)
136
CHANGHONG MEILING CO.,LTD. Annual Report 2020
by linking with the
fluctuations in interest
rates, exchange rates
and indexes etc., or
with the credit status
of an entity
93,50 803.3 795.2 795.2
Total -- -- -- -- -- -- -- -- -- --
0.00 7 8 8
Entrust financial expected to be unable to recover the principal or impairment might be occurred
□Applicable √ Not applicable
2. Entrust loans
□Applicable √ Not applicable
No entrust loans in the period.
(iv) Major contracts for daily operations
□Applicable √ Not applicable
(v) Other material contracts
□Applicable √ Not applicable
No other material contracts in the period
137
CHANGHONG MEILING CO.,LTD. Annual Report 2020
XVIII. Social responsibility
(i) Performance of social responsibility: Not applicable
(ii) Fulfill the precise social responsibility for poverty alleviation
The Company has no precise social responsibility for poverty alleviation in the period and has no follow-up plan either.
(iii) Environment protection
The listed Company and its subsidiary whether belongs to the key sewage units released from environmental protection department: √ Yes □ No
Major
number
Name of pollutants and Discharge
Way of of concentration of Total discharge Total discharge volume
company or name of Distribution of discharge outlets Pollutants discharge standards enacted beyond the
discharge discharg discharge volume certified
subsidiary typical standards
e outlets
pollutants
Two outlets at J05 workshop and "Sichuan Province Fixed Pollution Source Sichuan Changhong
VOC (volatile one outlet at J07 workshop, No Air Volatile Organic Compound Emission Air-conditioner Co., Ltd. has
Organized Not
organic 3 128, Sanjiang Road, Economic ≤22.4 mg/m3 Standard DB51/2377-2017" Table3 1880.76kg completed the pollutant exceeded
emissions
Sichuan compounds) Development Zone, Mianyang standard requirements, that is, volatile discharge registration on the
Changhong City organic compounds <60mg/m3. national pollutant discharge
Air-conditioner Two outlets at J05 workshop (it "Comprehensive Emission Standard of Air permit management
Co., Ltd. belongs to the same output as Pollutants GB16297-1996" Table 2 information platform and
Nitrogen Organized Not
2 J05VOC), No 128, Sanjiang ≤13 mg/m3 secondary standard requirements, that is, the 248.16kg obtained the registration
oxides emissions exceeded
Road, Economic Development concentration of nitrogen oxides <240 receipt in accordance with the
Zone, Mianyang City mg/m3 "Pollution Permit
138
CHANGHONG MEILING CO.,LTD. Annual Report 2020
Two outlets at J05 workshop (it Management Measures
belongs to the same output as (Trial)", the "Fixed Pollution
"Comprehensive Emission Standard of Air
Organized Not
J05VOC), No 128, Sanjiang ≤13 mg/m3 Source Pollution Permit
Sulfur dioxide 2 Pollutants GB16297-1996" Table 2 911.05kg
emissions exceeded
Road, Economic Development Classification Management
requirements, that is, the SO2<120 mg/m3
Zone, Mianyang City Directory (2019 Edition)",
etc., there is no requirement
Two outlets at J05 workshop and "Comprehensive Emission Standard of Air
for the company's total
one outlet at J07 workshop, No Pollutants GB16297-1996" Table 2
Particulate Organized emissions in the pollution Not
4 128, Sanjiang Road, Economic ＜20mg/m3 secondary standard requirements, that is, the 5767.56kg
matter emissions discharge registration exceeded
Development Zone, Mianyang concentration of particulate matter <120
City mg/m3
Note 1: In 2020, Bureau of Ecology and Environment of Mianyang issued the MHF [2020] No. 38 "Notice on Supplementing the List of Key Pollutant Discharge Units in 2020", and included
Changhong Air-conditioner in the list of key soil pollution supervision.
Note 2: The company's wholly-owned subsidiary Zhongshan Changhong Electric Co., Ltd. (hereinafter referred to as "Zhongshan Changhong") is located in Zhongshan City, Guangdong
Province. In 2019, Zhongshan Changhong was listed in the list of key pollutant emission units for the atmospheric environment in 2019 by the Bureau of Ecology and Environment of
Zhongshan. However, the company attached great importance to environmental protection in daily environmental protection and pollution control work, and actively fulfilled corporate social
responsibility and undertook social obligations. In 2020, Zhongshan Changhong is no longer included in the list of key pollutant discharge units in 2020 by the Bureau of Ecology and
Environment of Zhongshan.
139
CHANGHONG MEILING CO.,LTD. Annual Report 2020
1. Construction and operation of pollution prevention facilities
The Company and its subsidiaries actively respond to the national ecological civilization construction plan, and
actively participate in national environmental protection works in line with the purpose of actively fulfilling its
corporate social responsibility. In recent years, The Company and its subsidiaries have actively explored the
introduction of advanced management concepts and methods, and invested a large amount of money in the
purchase of pollution control equipment and facilities. And realized emission reduction by scientific technical
methods by the investment in installation of activated carbon adsorption treatment equipment, welding dust
purifier facilities etc. At the same time, in order to ensure the effective operation of the management equipment
and facilities, the Company and its subsidiaries have adopted such management measures as setting up special
personnel to manage and maintain the operation of the equipment and facilities, formulating proper rules for
operation and maintenance of the equipment and facilities, emergency disposal regulations, supervision and
assessment mechanism, allocating special maintenance funds and so on, so as to ensure the effective operation of
the governing facilities in a full round, delivering its best to protect and improve the ecological environment
around the enterprise.
2. Environment impact assessment and other required environment protection administrative license for
construction projects
The Company and its subsidiaries earnestly implement the Environmental Protection Law, the Environmental
Impact Assessment Law and the Regulations on Environmental Protection Management of Construction Projects,
consciously abide by environmental protection laws and regulations, industry requirements and government
regulations. For new, renovated and expanded projects, the Company and its subsidiaries adhere to the project
environmental impact assessment and "three simultaneous" system, fully implement environmental protection
measures, act well in environment protection management in respect of project planning, design, construction and
operation, make full use of advanced crafts and technological means to reduce environmental pollution.
Environmental impact assessment is carried out synchronously while making the feasibility study for a
construction project. Third-party professional parties are engaged to analyze the industrial policy, land use
planning, environmental impact and the feasibility of environmental protection measures of the project.
Construction will be started only after approved by the competent environmental protection authorities. During
the construction, environmental protection requirements are earnestly implemented, environmental protection
facilities are built synchronously, environmental protection acceptance of the project is arranged in time upon
completion of the project to ensure that the project meets the acceptance criteria and could be put into official
operation with all the environmental impact assessment requirements met. During the operation period, the
Company conducts pollution prevention to ensure the normal operation of environmental protection facilities in
strict compliance with the relevant environmental impact assessment documents and the reply requirements of the
competent environmental protection authorities.
3. Emergency plan for environmental emergencies
The Company and its subsidiaries have set up related emergency plans for environmental emergencies. The
140
CHANGHONG MEILING CO.,LTD. Annual Report 2020
Company and its subsidiaries have determined classified warning based on the different extent and severity of
environmental impacts that may be caused by the material environmental factors, defined the responsibilities for
emergency response, regulated emergency handling procedures, established special team to handle emergencies
and organized regular rehearsal and appraisal of relevant emergency plans, so as to ensure the effectiveness of
these plans, improve their capability of emergency handling and take precautions against contingent emergencies.
4. Independent plan to monitor environment
The Company and its subsidiaries have established regular monitoring plan for environmental pollutants, set up
special funds for pollutants monitoring, and engaged third-party authoritative to regularly monitor the operation of
major pollution-production links and environmental protection treatment facilities in connection with the major
pollutants produced by the Company and its subsidiaries, to make sure that the Company and its subsidiaries
could achieve emission standards in a full round.
5. Other environment information that should be disclosed
According to the Environmental Information Disclosure Measures of Enterprises and Institutions, the Company
and its subsidiaries have realized the disclosure of information relating to environmental impact assessment,
project acceptance, pollutants production and discharge, solid waste management, important environmental
factors, environmental objectives and performance of construction projects.
6. Other environment related information
In order to further realize the scientific and systematic environmental protection work of the Company and its
subsidiaries, the Company and its subsidiaries have established an environmental management system in
accordance with ISO14001 standards, set up an environmental protection organization, acquired environmental
protection resources, regularly identified, updated and appraised environmental factors, compliance obligations,
environmental risks and opportunities, and regularly determined environmental objectives and management
programs. Through the implementation of management programs and continuous normal improvement, the
environmental performance of the Company and its subsidiaries has been continuously improved. Through regular
internal audit and management review, as well as the verification and examination of the third parties, the
environmental management system of the Company and its subsidiaries has been effectively controlled and fully
meets the system management standards and relevant regulations.
XIX. Explanation on other significant events
√Applicable □ Not applicable
1. The resolution of the 34th session of the 9th board of directors of the company passed and agreed that the
company would withdraw in advance the remaining all investments under the "Dongwu-CMB-Donghui No. 135
Targeted Asset Management Plan" issued by Soochow Securities Co., Ltd., that is, the remaining face value of 50
million yuan of principal and the investment income during the holding period corresponding to the principal of
about 2,816,300 yuan (preliminary calculation) are recovered in advance, and use for the company's daily
141
CHANGHONG MEILING CO.,LTD. Annual Report 2020
operations. After this withdrawal in advance, the entrusted asset principal of the No. 135 targeted asset
management plan subscribed by the company is 0 yuan, and the company will subsequently liquidate the targeted
asset management plan. Found more on appointed media ―Securities Times‖, ―China Securities Journal‖, ―Hong
Kong Commercial Daily‖ and www.cninfo.com.cn that the Company disclosed in the form of announcement
(Announcement No. 2019-094) on 2 Jan. 2020.
2. The resolutions of the 36th session of the 9th Board of Directors, the 19th session of the 9th Board of Supervisors,
and the 2019 Annual General Meeting of Shareholders passed the ―Plan for Profit Distribution of the Company in
2019‖, and the independent directors of the company made independent approval opinions, taking into account the
interests of shareholders and the long-term development needs of the company, agreed the company to use the
total share capital of 1,044,597,881 shares on December 31, 2019 as the base, and distribute a cash dividend of 0.5
yuan (including tax) per every 10 shares to all shareholders, who distributed cash dividends of 52,229,894.05 yuan
(including tax) in total. After this allocation, the company's total share capital remains unchanged, and the
remaining undistributed profit of the parent company is 893,677,967.36 yuan, and the remaining undistributed
profits shall be distributed after being carried forward in the subsequent years.
On 11 June 2020, the Company released the profit distribution plan for year of 2019 and implemented the plan.
Found more on appointed media ―Securities Times‖, ―China Securities Journal‖, ―Hong Kong Commercial Daily‖
and www.cninfo.com.cn that the Company disclosed in the form of announcement (Announcement No. 2020-012,
No.2020-013, No.2020-028, No.2020-036 and No.2020-038) on 28 March 2020, 8 May 2020, 30 May 2020 and
11 June 2020.
3. The 36th session of the 9th board of directors of the company and the 2019 annual general meeting of
shareholders passed and agreed that the company and its subsidiaries would conduct forward foreign exchange
fund transactions during the period from July 1, 2020 to June 30, 2021, the business transaction balance does not
exceed 650 million U.S. dollars (mainly including U.S. dollars, Australian dollars, Euros, and all other foreign
exchanges are converted into U.S. dollars), and the longest delivery period of a single business does not exceed 1
year. Found more on appointed media ―Securities Times‖, ―China Securities Journal‖, ―Hong Kong Commercial
Daily‖ and www.cninfo.com.cn that the Company disclosed in the form of announcement (Announcement No.
2020-012, No.2020-017, and No.2020-036) on 28 March 2020 and 30 May 2020.
4. The 36th session of the 9th board of directors of the company and the 2019 annual general meeting of
shareholders passed and 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, with a credit period of 2 years.
The types of credits are mainly used for the special business in the bill pools by using the bill pledge method. The
37th session of the 9th board of directors of the company and the 2019 annual general meeting of shareholders
approved and 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, with a credit period of 1 year. The credit types are mainly used for
special business in the bill pools by adopting the bill pledge method. The 38th session of the 9th board of directors
of the company and the 2019 annual general meeting of shareholders approved and agreed that the company and
its subsidiaries could apply to Hefei Economic Development Zone Branch of Huishang Bank Co., Ltd. for a
142
CHANGHONG MEILING CO.,LTD. Annual Report 2020
special credit line of up to 300 million yuan in the bill pools, with a credit period of 1 year. The credit types are
mainly used for special business in the bill pools by adopting the bill pledge method, and agreed that the company
and its subsidiaries could apply to the Hefei Branch of China Merchants Bank Co., Ltd. for a special credit line of
up to 300 million yuan in the bill pools, with a credit period of 1 year. The credit types are mainly used for special
business in the bill pools by adopting the bill pledge method. The 42nd session of the 9th board of directors of the
company and the 4th Extraordinary General Meeting of Shareholders of 2020 approved and agreed that the
company and its subsidiaries could apply to Hefei Branch of Hua Xia Bank Co., Ltd. for a special credit line of up
to 500 million yuan in the bill pools, agreed that the company and its subsidiaries could apply to Hefei Branch of
Hangzhou Bank Co., Ltd. for a special credit line of up to 600 million yuan in the bill pools, agreed that the
company and its subsidiaries could apply to 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 and its subsidiaries 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. Found
more on appointed media ―Securities Times‖, ―China Securities Journal‖, ―Hong Kong Commercial Daily‖ and
www.cninfo.com.cn that the Company disclosed in the form of announcement (Announcement No. 2020-012,
No.2020-020, No.2020-022, No.2020-025, No.2020-029, No.2020-030, No.2020-036, No.2020-069 and
No.2020-083) on 28 March 2020, 18 April 2020, 8 May 2020, 30 May 2020, 19 September 2020 and 13 October
2020.
5. Being deliberated and approved by 39th session of 9th BOD, the Company agreed to invest approximately 20.21
million yuan on the expansion technology improvement for production line of the export refrigerators, with
purpose of improving the production capacity, technical standards and product competitiveness. Found more on
appointed media ―Securities Times‖, ―China Securities Journal‖, ―Hong Kong Commercial Daily‖ and
www.cninfo.com.cn that the Company disclosed in the form of announcement (Announcement No.2020-041) on
30 June 2020.
6. The deliberations and approvals at the 33rd session of the 9th board of directors, the 17th session of the 9th board
of supervisors, and the first extraordinary general meeting of shareholders in 2020 agreed that the company would
close the "intelligent R&D project", and the project's surplus raised funds of 125,084,220.44 yuan as of November
30, 2019 (including the income of wealth management and the interest income from deposits of 47,970,805.20
yuan) and the interest settled thereafter are used to permanently supplement the company's liquid funds. The
specific amount is subject to the actual amount after deducting the reserved contract balance and the warranty
money from the special account on the day the funds are transferred out. At the same time, the total amount of
114,368,326.60 yuan in the balance of the contract to be paid and warranty money will continue to be kept in the
fund-raising account and paid according to the contract. Found more on appointed media ―Securities Times‖,
―China Securities Journal‖, ―Hong Kong Commercial Daily‖ and www.cninfo.com.cn that the Company disclosed
in the form of announcement (Announcement No. 2019-088, No.2019-089, No.2019-091 and No.2020-002) on 26
Dec. 2019 and 11 Jan. 2020.
7. In reporting period, the Company and its subordinate controlling subsidiary, have accumulated received various
kinds of government subsidies as 50,907,539.53 Yuan. Found more on appointed media ―Securities Times‖,
143
CHANGHONG MEILING CO.,LTD. Annual Report 2020
―China Securities Journal‖, ―Hong Kong Commercial Daily‖ and www.cninfo.com.cn that the Company disclosed
in the form of announcement (Announcement No.2020-043) on 2 July 2020.
8. On July 23, 2020, the company issued the Reminder Announcement on Operating Conditions. Found more on
appointed media ―Securities Times‖, ―China Securities Journal‖, ―Hong Kong Commercial Daily‖ and
www.cninfo.com.cn that the Company disclosed in the form of announcement (Announcement No.2020-046).
9. After review and approval by the 40th session of the 9th BOD, the 21st meeting of the 9th board of supervisors,
and the 3rd extraordinary general meeting of shareholders in 2020, it was agreed that the company would use its
own funds to repurchase part of the company's domestic listed foreign shares (B shares) by means of centralized
bidding transactions. Found more on appointed media ―Securities Times‖, ―China Securities Journal‖, ―Hong
Kong Commercial Daily‖ and www.cninfo.com.cn that the Company disclosed in the form of announcement
(Announcement No. 2020-047, No.2020-048, No.2020-049 and No.2020-063) on 28 July 2020, 19 August 2020
At present, the share repurchase plan is in the process of implementation, see this report for details "4. Progress in
the implementation of share repurchase" in "1. Share changes" in "(1) Share changes" in "Section VI Changes in
Shares and Particular about Shareholders".
10. The resolutions of the 41st meeting of the 9th Board of Directors, the 22nd meeting of the 9th Board of
Supervisors passed and agreed the company to implement the new financial instrument standards and change the
relevant accounting policies in accordance with the relevant regulations and requirements of the Ministry of
Finance. Found more on appointed media ―Securities Times‖, ―China Securities Journal‖, ―Hong Kong
Commercial Daily‖ and www.cninfo.com.cn that the Company disclosed in the form of announcement
(Announcement No. 2020-056, No.2020-057 and No.2020-059) on 15 August 2020
11. During the period from December 9 to December 10, 2020 and from December 22 to December 23, 2020, the
company's stock trading had two consecutive trading days with a cumulative increase deviation of the closing
price of more than 20%. According to the relevant regulations of the Shenzhen Stock Exchange, the company
issued the Announcement on Abnormal Fluctuations in Stock Trading. Found more on appointed media
―Securities Times‖, ―China Securities Journal‖, ―Hong Kong Commercial Daily‖ and www.cninfo.com.cn that the
Company disclosed in the form of announcement (Announcement No. 2020-096 and No.2020-106) on 11
December 2020 and 24 December 2020.
12. The resolutions of the 33rd meeting of the 9th Board of Directors, the 17th meeting of the 9th Board of
Supervisors, and the 1st Extraordinary General Meeting of 2020 passed and agreed the company to provide credit
guarantees of 3670 million yuan in total for its wholly-owned and controlled subsidiaries in 2020, the guarantee
period is one year for the newly increased guarantee amount for the current year and the amount of renewal
insurance during Current Year. Found more on appointed media ―Securities Times‖, ―China Securities Journal‖,
―Hong Kong Commercial Daily‖ and www.cninfo.com.cn that the Company disclosed in the form of
announcement (Announcement No. 2019-088, No. 2019-089, No. 2019-090 and No.2020-002) on 26 December
2019 and 11 January 2020.
The resolutions of the 4th meeting of the 10th Board of Directors, the 3rd meeting of the 10th Board of Supervisors,
144
CHANGHONG MEILING CO.,LTD. Annual Report 2020
and the 5th Extraordinary General Meeting of 2020 passed and agreed the company to provide credit guarantees of
3,649,203,800 yuan in total for its wholly-owned and controlled subsidiaries in 2021, the guarantee period is one
year for the newly increased guarantee amount in 2021 and the amount of renewal insurance in 2021. Found more
on appointed media ―Securities Times‖, ―China Securities Journal‖, ―Hong Kong Commercial Daily‖ and
www.cninfo.com.cn that the Company disclosed in the form of announcement (Announcement No. 2019-088, No.
2020-097, No. 2020-098, No. 2020-101 and No.2020-107) on 12 December 2020 and 30 December 2020.
13. The resolutions of the 4th session of the 10th Board of Directors passed and agreed to appointed Mr. Zhong
Ming as president of the Company, and his term of office is the same as the 10th BOD‘s. Found more on appointed
media ―Securities Times‖, ―China Securities Journal‖, ―Hong Kong Commercial Daily‖ and www.cninfo.com.cn
that the Company disclosed in the form of announcement (Announcement No.2020-097) on 12 December 2020.
14. After review and approval by the company‘s fourth meeting of the tenth board of directors, the third meeting
of the tenth board of supervisors, and the fifth extraordinary general meeting of shareholders in 2020, it was
agreed that the company and its subsidiaries would use their own idle funds not exceeding 1.2 billion yuan (The
quota can be used on a rolling basis) to invest in the high-security, good-liquidity, low-risk, and stable bank
financial products of product maturity within one year, the authorization period is valid within one year from the
date of approval by the company‘s general meeting of shareholders. Found more on appointed media ―Securities
Times‖, ―China Securities Journal‖, ―Hong Kong Commercial Daily‖ and www.cninfo.com.cn that the Company
disclosed in the form of announcement (Announcement No.2020-097, No.2020-098, No.2020-102 and
No.2020-107) on 12 December 2020 and 30 December 2020
15. After review and approval by the fourth meeting of the company‘s tenth board of directors, it was agreed that
the company would invest about 46.57 million yuan in the technical transformation of the refrigerator (freezer)
production line at the Hefei base to meet future market demand and production capacity enhancement
requirements, so as to enhance the company‘s product competitiveness, and realize cost reduction and efficiency
improvement. Found more on appointed media ―Securities Times‖, ―China Securities Journal‖, ―Hong Kong
Commercial Daily‖ and www.cninfo.com.cn that the Company disclosed in the form of announcement
(Announcement No.2020-097) on 12 December 2020.
16. After review and approval by the fourth meeting of the 10th board of directors of the company, it was agreed
that the company would invest 13,879,900 yuan to upgrade and rebuild the drainage pipe network of the freezer
park and living quarters of the Hefei base to improve the drainage system capacity of the park, so as to guarantee
the demand for the capacity of the drainage network due to the increase in production capacity and personnel.
Found more on appointed media ―Securities Times‖, ―China Securities Journal‖, ―Hong Kong Commercial Daily‖
and www.cninfo.com.cn that the Company disclosed in the form of announcement (Announcement No.2020-097)
on 12 December 2020.
17. After review and approval by the fourth meeting of the tenth board of directors of the company, it was agreed
that the company would apply for a new line of credit to some commercial banks with a pledge of no more than
150 million yuan of time deposits for the financing of export accounts receivable and bank acceptance bills,
working capital loans, with a term of one year. Found more on appointed media ―Securities Times‖, ―China
145
CHANGHONG MEILING CO.,LTD. Annual Report 2020
Securities Journal‖, ―Hong Kong Commercial Daily‖ and www.cninfo.com.cn that the Company disclosed in the
form of announcement (Announcement No.2020-097 and No.2020-103) on 12 December 2020.
XX. Major event of the subsidiary
√Applicable □ Not applicable
1. The deliberations and approvals at the 36th session of the 9th board of directors of the company agreed that the
company and its wholly-owned subsidiary Sichuan Changhong Air-conditioner Co., Ltd. (hereinafter referred to
as "Changhong Air-conditioner") would jointly increase capital of 150 million yuan to Zhongshan Changhong
with their own funds according to the existing shareholding ratio, of which the Company increased capital of
135 million yuan, and Changhong Air conditioning increased capital of 15 million yuan. After the capital increase
was completed, the registered capital of Zhongshan Changhong has increased to 334 million yuan, and the
shareholding ratio of the company and Changhong Air-conditioner in Zhongshan Changhong remains unchanged
at 90% and 10%. Found more on appointed media ―Securities Times‖, ―China Securities Journal‖, ―Hong Kong
Commercial Daily‖ and www.cninfo.com.cn that the Company disclosed in the form of announcement
(Announcement No.2020-012 and No.2020-018) on 28 Mar. 2020
2. The deliberations and approvals at the 36th session of the 9th board of directors and the 19th session of the 9th
board of supervisors of the company agreed that in 2020, the company would increase credit guarantee for
Zhongke Meiling, with the amount not exceeding 30 million yuan. After the approval of the guarantee quota, the
guarantee quota provided by the company to Zhongke Meiling in 2020 will accumulate to 180 million yuan.
Found more on appointed media ―Securities Times‖, ―China Securities Journal‖, ―Hong Kong Commercial Daily‖
and www.cninfo.com.cn that the Company disclosed in the form of announcement (Announcement No.2020-012,
No.2020-013 and No.2020-036) on 28 Mar. 2020 and 30 May 2020.
3. The deliberations and approvals at the 37th session of the 9th board of directors of the company agreed that the
company would transfer the 0.18% equity of Ridian Technology held by Wu Changyuan with its own funds
(initial investment amount of 150,000 yuan), and the equity transfer price was based on Ridian Technology‘s
audited net assets of 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. Found more on appointed media
―Securities Times‖, ―China Securities Journal‖, ―Hong Kong Commercial Daily‖ and www.cninfo.com.cn that the
Company disclosed in the form of announcement (Announcement No.2020-022) on 18 April 2020.
4. The deliberations and approvals at the 37th session of the 9th board of directors of the company agreed that the
company would transfer 100% equity of 7 subsidiaries held by the company‘s wholly-owned subsidiary Hefei
Meiling Electric Appliances Marketing Co., Ltd., including Chengdu Meiling Electric Appliances Marketing Co.,
Ltd., Fuzhou Meiling Electric Appliances Marketing Co., Ltd., and so on, to Hefei Meiling Group Holdings
Limited, which is a wholly-owned subsidiary of the company, the equity transfer price is based on the audited net
asset value of 7 marketing companies as of December 31, 2019, and it‘s determined that the total equity transfer
cost is 7 yuan. Found more on appointed media ―Securities Times‖, ―China Securities Journal‖, ―Hong Kong
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CHANGHONG MEILING CO.,LTD. Annual Report 2020
Commercial Daily‖ and www.cninfo.com.cn that the Company disclosed in the form of announcement
(Announcement No.2020-022) on 18 April 2020.
5. After review and approval by the 42nd meeting of the ninth board of directors of the company, it was agreed
that the company would transfer 100% of the equity of three subsidiaries, including Taiyuan Meiling Electric
Appliances Marketing Co., Ltd., Tianjin Meiling Electric Appliances Marketing Co., Ltd., and Zhengzhou Meiling
Electric Appliances Marketing Co., Ltd., held by Hefei Meiling Electric Appliances Marketing Co., Ltd., a
wholly-owned subsidiary of the company, to Hefei Meiling Group Holding Co., Ltd., a wholly-owned subsidiary
of the company, the price of the equity transfer was based on the audited net asset value of the three marketing
companies as of December 31, 2019, it‘s determined that the total equity transfer price was 2,724,594.32 yuan. It
was agreed that Meiling Group, a wholly-owned subsidiary of the company, would merge its wholly-owned
subsidiaries Chengdu Meiling Electric Appliances Marketing Co., Ltd., Fuzhou Meiling Electric Appliances
Marketing Co., Ltd., Hangzhou Meiling Electric Appliances Marketing Co., Ltd., and other 7 subsidiaries. Found
more on appointed media ―Securities Times‖, ―China Securities Journal‖, ―Hong Kong Commercial Daily‖ and
www.cninfo.com.cn that the Company disclosed in the form of announcement (Announcement No. 2020-069) on
19 September 2020.
6. The deliberations and approvals at the 39th session of the 9th board of directors of the company agreed that
Changhong Air-conditioner would apply to the Agricultural Bank of China Co., Ltd. Mianyang Fucheng
Sub-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 that 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 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. Found more on appointed media
―Securities Times‖, ―China Securities Journal‖, ―Hong Kong Commercial Daily‖ and www.cninfo.com.cn that the
Company disclosed in the form of announcement (Announcement No.2020-041 and No.2020-042) on 30 June
2020
7. On September 29, 2020, the company received the capital share and profit distribution amount totaling
27,824,000 yuan from Sichuan Hongyun New Generation Information Technology Venture Capital Fund
Partnership (Limited Partnership) (hereinafter referred to as "Hongyun Fund"), a shareholding company, among
them, the recovered capital share was 2.46 million yuan; the profit distribution amount was 25,364,400 yuan,
accounting for 44.94% of the company‘s most recent audited net profit attributable to shareholders of the listed
company. Found more on appointed media ―Securities Times‖, ―China Securities Journal‖, ―Hong Kong
Commercial Daily‖ and www.cninfo.com.cn that the Company disclosed in the form of announcement
(Announcement No. 2020-082) on 10 October 2020.
147
CHANGHONG MEILING CO.,LTD. Annual Report 2020
8. Deliberated and approved by the fourth meeting of the tenth board of directors of the company, it was agreed
that the company and Ningbo Hongling Enterprise Management Partnership (Limited Partnership) (the
shareholding platform of the core management team of household appliances industry, hereinafter referred to as
the "partnership") would jointly invest and establish Hefei Changhong Meiling Household Appliances Co., Ltd.,
in which the Company contributes 35 million yuan in cash, accounting for 70% of the registered capital, and the
partnership invests 15 million yuan in cash, accounting for 30% of the registered capital, so as to adapt to external
market competition, achieve the transformation and upgrading of the company‘s household appliances industry,
and promote the rapid and sound development of the household appliances industry. Found more on appointed
media ―Securities Times‖, ―China Securities Journal‖, ―Hong Kong Commercial Daily‖ and www.cninfo.com.cn
that the Company disclosed in the form of announcement (Announcement No. 2020-097) on 12 December 2020.
148
CHANGHONG MEILING CO.,LTD. Annual Report 2020
Section VI. Changes in shares and particular about shareholders
I. Changes in shares
(i) Changes in shares
In Share
Before the Change Increase/Decrease in the Change (+, -) After the Change
Capitalizat
New
Bonus ion of Proportio
Amount Proportion shares Others Subtotal Amount
shares public n
issued
reserve
I. Restricted shares 10,553,770 1.01% 0 0 0 -81,094 -81,094 10,472,676 1.00%
1. State-owned shares 0 0.00% 0 0 0 0 0 0 0.00%
2. State-owned legal person‘s shares 915,987 0.09% 0 0 0 737,748 737,748 1,653,735 0.16%
3. Other domestic shares 8,370,363 0.80% 0 0 0 -818,842 -818,842 7,551,521 0.72%
Including: Domestic legal person‘s
4,716,077 0.45% 0 0 0 -737,748 -737,748 3,978,329 0.38%
shares
Domestic natural person‘s shares 3,654,286 0.35% 0 0 0 -81,094 -81,094 3,573,192 0.34%
4. Foreign shares 1,267,420 0.12% 0 0 0 0 0 1,267,420 0.12%
Including: Foreign legal person‘s
0 0.00% 0 0 0 0 0 0 0.00%
shares
Foreign natural person‘s shares 1,267,420 0.12% 0 0 0 0 0 1,267,420 0.12%
II. Unrestricted shares 1,034,044,111 98.99% 0 0 0 81,094 81,094 1,034,125,205 99.00%
1. RMB ordinary shares 872,447,531 83.52% 0 0 0 81,094 81,094 872,528,625 83.53%
2. Domestically listed foreign shares 161,596,580 15.47% 0 0 0 0 0 161,596,580 15.47%
3. Overseas listed foreign shares 0 0.00% 0 0 0 0 0 0 0.00%
4. Others 0 0.00% 0 0 0 0 0 0 0.00%
III. Total shares 1,044,597,881 100.00% 0 0 0 0 0 1,044,597,881 100.00%
1. Reasons for share changed
√ Applicable □ Not applicable
(1) During the reporting period, 737,748 shares of the 1,229,580 shares with sales restrictions of the Company
held by the original shareholder, the City Insurance Company, were transferred to the People's Insurance Group of
China Co., Ltd., so the holder of the aforementioned shares was changed to a state-owned legal person.
(2) On August 22, 2019, the director and vice president of the company at the time, Mr. Zhong Ming, reduced his
holding of 78,725 shares of the company through centralized bidding. After this reduction of holding, Mr. Zhong
149
CHANGHONG MEILING CO.,LTD. Annual Report 2020
Ming holds 236,175 shares of the company‘s RMB ordinary shares. According to the relevant regulations of the
"Implementation Rules for Shareholding Reduction of Shareholders, Directors, Supervisors, and Senior
Management of Listed Companies of the Shenzhen Stock Exchange", during the reporting period, the sales
restrictions of 25% of the company‘s shares held by Mr. Zhong Ming, i.e. 59,044 shares, were lifted, and the
remaining shares shall continue to be locked up.
(3) The original director of the company, Mr. Teng Guangsheng (Mr. Teng Guangsheng resigned from the
company on June 2, 2018), the original term of office would expire on September 12, 2020. According to the
relevant regulations of the "Implementation Rules for Shareholding Reduction of Shareholders, Directors,
Supervisors, and Senior Management of Listed Companies of the Shenzhen Stock Exchange", during the
reporting period, the sales restrictions of 25% of the company‘s shares held by Mr. Teng Guangsheng, namely
22,050 shares, were lifted, and the remaining shares shall continue to be locked up.
2. Approval of share changed
□ Applicable √ Not applicable
3. Ownership transfer of share changed
√ Applicable □ Not applicable
The 1,229,580 shares of the Company with sales restrictions held by the original shareholder, City Insurance
Company, were transferred to the People‘s Insurance Group of China and China Life Insurance (Group) Company
respectively. Among them, the People‘s Insurance Group of China holds 737,748 shares, and China Life Insurance
(Group) Company holds 491,832 shares. The equity transfer procedures of aforementioned shares were completed
on May 28, 2020 at the Shenzhen branch of China Securities Depository and Clearing Corporation Limited.
4. 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. Found more on announcement (Notice No.:2020-047, 2020-048, 2020-049, 2020-063, 2020-064,
2020-066, 2020-081, 2020-092, 2020-093, 2020-094, 2020-095, 2021-001, 2021-007 and 2021-012) released on
appointed media China Securities Journal, Securities Times, Hong Kong Commercial Daily and Juchao Website.
The company repurchased its shares for the first time from November 4, 2020 to December 31, 202, and
repurchased 5,552,151 shares of the company by centralized bidding through a dedicated securities account for
repurchase, accounting for 0.5315% of the company‘s total share capital, the highest transaction price was
HK$2.21/share, the lowest transaction price was HK$1.87/share, and the total amount of self-owned funds paid
was HK$11,699,465.27 (excluding transaction fees such as stamp duty and commission).
As of the disclosure date of this report, 8,388,888 shares of the company‘ share have been repurchased by
centralized bidding through the special securities account for repurchase, accounting for 0.8031% of the
150
CHANGHONG MEILING CO.,LTD. Annual Report 2020
company‘s total share capital. The highest transaction price was HK$2.21/share, and the lowest transaction price
was HK$1.87/share, the total amount of self-owned funds paid was HK$17,946,867.40 (excluding transaction fees
such as stamp duty and commission).
5. Implementation progress of the reduction of repurchases shares by centralized bidding
□ Applicable √ Not applicable
6. Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable
to common shareholders of Company in latest year and period
□ Applicable √ Not applicable
7. Other information necessary to disclose for the Company or need to disclosed under requirement from security
regulators
□ Applicable √ Not applicable
(ii) Changes of restricted shares
√ Applicable □ Not applicable
In Share
Restricted
Shares
Opening Shares Ending
Increased
Shareholders shares released in shares Restricted reasons Date for released
In
restricted Period restricted
the
Period
At beginning of 2020, 25% of the total company‘s shares
Share lockup in
Zhong Ming 236,175 0 59,044 177,131 held by Mr. Zhong Ming, namely the 59,044 shares, have
senior executives
been released from restriction
At beginning of 2020, 25% of the total company‘s shares
Teng Share lockup in
88,200 0 22,050 66,150 held by Mr. Teng Guangsheng, namely the 22,050 shares,
Guangsheng senior executives
have been released from restriction
Total 324,375 0 81,094 243,281 -- --
II. Security offering and listing
(i) Security offering in reporting period (Not including preferred stock)
□ Applicable √ Not applicable
(ii) Explanation on changes of total shares, shareholders structure and assets & liability structures
□ Applicable √ Not applicable
151
CHANGHONG MEILING CO.,LTD. Annual Report 2020
(iii) Current shares held by internal staffs
□ Applicable √ Not applicable
III. Particulars about shareholder and actual controller of the Company
(i) Amount of shareholders of the Company and particulars about shares holding
In Share
Total preference Total preference
Total common
shareholders with shareholders with voting
shareholders at end
Total shareholders at end of voting rights rights recovered at end of
100,662 of last month before 82,038 0 0
the Period recovered at end of last month before annual
annual report
reporting period (if report disclosed (if
disclosed
applicable) applicable)
Particulars about shares held above 5% by shareholders or top 10 shares holding
Number of share
Total
Proporti Amount of Amount of pledged/frozen
Nature of on of shareholders at Changes in
Full name of Shareholders restricted un-restricted State
shareholder shares the end of report report period
held shares held shares held of Amount
period
share
Sichuan Changhong Electric Co., State-owned legal
23.79% 248,457,724 0 0 248,457,724 - -
Ltd. person
Hefei Industry Investment Holding State-owned legal
4.58% 47,823,401 0 0 47,823,401 - -
(Group) Co., Ltd. person
CHANGHONG (HK) TRADING
Foreign legal person 2.59% 27,077,797 0 0 27,077,797 - -
LIMITED
Foreign nature
CAO SHENGCHUN 1.41% 14,766,086 0 0 14,766,086 - -
person
Domestic nature
Ma Guobin 1.27% 13,231,054 +3,358,120 0 13,231,054 - -
person
Caitong Fund- Ningbo
Domestic
Bank-Haitong Xingtai (Anhui)
non-state-owned 1.03% 10,733,452 0 0 10,733,452 - -
Emerging Industry Investment Fund
legal person
(Limited Partnership)
Philip Securities (H.K.) Co., Ltd. Foreign legal person 0.60% 6,296,913 0 0 6,296,913 - -
Securities A/C for Repurchase
Domestic general
under the name of Changhong 0.53% 5,552,151 +5,552,151 0 5,552,151 - -
legal person
Meiling Co., Ltd.
Ningbo High-Flyer Quant Domestic
Investment Management non-state-owned 0.45% 4,678,131 +4,678,131 0 4,678,131 - -
Partenership (Limited Partnership) legal person
152
CHANGHONG MEILING CO.,LTD. Annual Report 2020
-High-Flyer Quant Qingxi No.5
Private Equity Investment Fund
Domestic nature
Gu Jie 0.41% 4,285,700 +4,285,700 0 4,285,700 - -
person
Strategy investors or general legal person becomes top 10
Not applicable
shareholders due to rights issued (if applicable)
Among the above shareholders, CHANGHONG (HK) TRADING LIMITED (hereinafter
referred to as Hong Kong Changhong) is the wholly-owned subsidiary of Sichuan Changhong
Electric Co., Ltd.; except the shares of the Company directly held by Hong Kong Changhong,
6,296,913 shares of B-stock are also held through Phillip Securities (Hong Kong) Co., Ltd., the
foregoing shareholders constitute persons of uniform action. There existed no associated
relationship or belong to the concerted actors as specified in the Measures for the
Administration of Information Disclosure of Shareholder Equity Changes of Listed Companies
Explanation on associated relationship among the
among Sichuan Changhong, Hong Kong Changhong and other top 6 shareholders （Excluding
aforesaid shareholders
Phillip Securities (Hong Kong) Co., Ltd.）; ―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‖.
Particular about top ten shareholders with un-restrict shares held
Amount of unrestricted Type of shares
Shareholders‘ name shares held at end of
Type Amount
Period
Sichuan Changhong Electric Co., Ltd. 248,457,724 RMB ordinary shares 248,457,724
Hefei Industry Investment Holding (Group) Co., Ltd. 47,823,401 RMB ordinary shares 47,823,401
Domestically listed
CHANGHONG (HK) TRADING LIMITED 27,077,797 27,077,797
foreign shares
Domestically listed
CAO SHENGCHUN 14,766,086 14,766,086
foreign shares
Ma Guobin 13,231,054 RMB ordinary shares 13,231,054
Caitong Fund- Ningbo Bank-Haitong Xingtai (Anhui) Emerging Industry Investment
10,733,452 RMB ordinary shares 10,733,452
Fund (Limited Partnership)
Domestically listed
Philip Securities (H.K.) Co., Ltd. 6,296,913 6,296,913
foreign shares
Domestically listed
Securities A/C for Repurchase under the name of Changhong Meiling Co., Ltd. 5,552,151 5,552,151
foreign shares
Ningbo High-Flyer Quant Investment Management Partenership (Limited Partnership)
4,678,131 RMB ordinary shares 4,678,131
-High-Flyer Quant Qingxi No.5 Private Equity Investment Fund
153
CHANGHONG MEILING CO.,LTD. Annual Report 2020
Gu Jie 4,285,700 RMB ordinary shares 4,285,700
Expiation on associated relationship or consistent actors within the top
Found more in ―Particulars about shares held above 5% by shareholders or top 10
10 un-restrict shareholders and between top 10 un-restrict shareholders
shares holding‖
and top 10 shareholders
As of December 31, 2020, among the top 10 common shareholders, Ma Guobin
holds 13,000,000 shares of the Company through customer credit trading secured
Explanation on top ten common shareholders involving margin account of Founder Securities Co., Ltd., and 231,054 shares hold through common
business (if applicable) securities account, thus 13,231,054 shares of the Company are held in total. The
shareholder-Gu Jie holds 4,285,700 shares of the Company through customer
credit trading secured account of China Merchants Securities Co., Ltd.
Note 1: At end of the reporting period, the person acting in concert with controlling shareholder Sichuan Changhong--
CHANGHONG (HK) TRADING LIMITED, holds B-stock of the Company as 33,374,710 shares, among which, 6,296,913 shares
are held through Philip Securities (H.K.) Co., Ltd. by CHANGHONG (HK) TRADING LIMITED
Note 2: In the above table, "Particulars about shares held above 5% by shareholders or top 10 shares holding" is subject to the data on
stock transfer books provided by China Securities Depository and Clearing Corporation Limited Shenzhen Branch
Whether the top ten ordinary shareholders of the company and the top 10 ordinary shareholders of unrestricted
conditions have made the repurchase transactions as agreed during the reporting period.
□Yes √ No
The top ten ordinary shareholders of the company and the top 10 ordinary shareholders of unrestricted conditions
have not made the repurchase transactions as agreed during the reporting period.
(ii) Controlling shareholder of the Company
1. Nature of controlling shareholders: local state-owned holding
2. Type of controlling shareholders: legal person
Controlling Legal
Dated Organization
shareholders‘ rep./person in Main business
founded code
name charge of unit
Manufactures, sales and maintenance of household appliance, automotive electrical
appliance, Electronic products and spare parts, communications equipment,
Sichuan lighting equipment, household products, computer and other Electronic equipment,
Changhong April 8, 91510700205 specialized equipment of Electronic and Electronic, Electronic machinery and equipment,
Zhao Yong
Electric Co., 1993 412308D series products of batteries, Electronic medicine products, Electronic equipment,
Ltd. mechanical equipment , Refrigeration equipment and accessories digital monitoring
products, metal products, apparatus and instruments, culture and office machines, culture
and education and sports products, kitchen cabinet and gas appliance; house and
154
CHANGHONG MEILING CO.,LTD. Annual Report 2020
equipment rental; packing products and technical services; road transportation; storage
and discharging convey; R&D, sales and services of integrated circuit and software;
consultancy and services of enterprise management; hi-tech project investment and other
state-permitted business; development and operation of property; engineering
construction for house and buildings; callback and disposal of obsolete appliance and
Electronic products; services of Information Technology; consultancy and services of
finance; sales, relevant import and export business of Chemical raw materials and
products(Not contain dangerous chemicals), building materials, non-ferrous metal,
Steel, plastics, packing material, mechanical and electrical equipment, Precious metals,
Automotive components, Electronic components, Value added telecommunication
service, agent service of telecommunication; designing, manufacturing, releasing and
agency for the advertisement; Radio and television program production; Internet
information services (excluding investment, finance and securities); audio and video
production and services; R&D and design of the drone and unmanned aerial vehicle
system as well as the promotion of drone technology; transfer and technical consulting
service, production and sales of drone (any projects that needs permission by the law
should subject to the approval by relevant authority )
1. Ended as 31 December 2020, Sichuan Changhong directly holds 212,994,972 shares of Changhong Huayi Compressor
Equity controlling and
Co., Ltd. (Stock code: 000404)- a company listed on the main board of the Shenzhen Stock Exchange, accounting for
jointly of other
30.60% of the equity of Changhong Huayi Compressor Co., Ltd.
foreign/domestic listed
2. Ended as 31 December 2020, Sichuan Changhong directly and indirectly holds 2,064,236,000 ordinary shares and
company by
preferred shares in total of Changhong Jiahua Holdings Co., Ltd. (Stock code: 03991)- a company listed on the main board of
controlling shareholder
Hong Kong Stock Exchange, accounting for 80.30% of the whole ordinary shares and preferred shares under the name of
in reporting period
Changhong Jiahua Holdings Co., Ltd.
3. Controlling shareholder changes in reporting period
□ Applicable √ Not applicable
Controlling shareholder stays the same in Period.
(iii) Actual controller of the Company and its person acting in concert
1. Nature of actual controller: local state-owned assets management
2. Type of actual controller: legal person
Legal
Organization
Actual controller rep./person in Dated founded Main business
code
charge of unit
State-owned Assets Supervision &
Administration Commission of Mianyang
State-owned Assets Supervision &
Municipality is entrusted by the same level
Administration Commission of Mianyang -- -- --
government, together performs
Municipality
decision-making and management of
state-owned asset owners, and is one
155
CHANGHONG MEILING CO.,LTD. Annual Report 2020
organization which executes comprehensive
management and supervision on its belonged
state-owned assets.
Equity controlling of other
foreign/domestic listed company by Not applicable
actual controller in reporting period
3. Changes of actual controller in Period
□ Applicable √ Not applicable
Actual controller stays the same in Period
4. Property rights and the block diagram of the control relationship between the Company and the actual control
(ended as 31st December 2020)
State-owned Assets Supervision & Sichuan Provincial Finance
Administration Commission of Mianyang Department
Municipality
90% 10%
Sichuan Changhong Electronics Holding Group Co., Ltd.
23.22%
Sichuan Changhong Electric Co., Ltd.
100%
23.79%
CHANGHONG (HK) TRADING LIMITED
3.19%
Changhong Meiling Co., Ltd.
5. Actual controller controlling the Company by means of entrust or other assets management
□ Applicable √ Not applicable
(iv) Other legal person’s shareholders with over ten percent shares held
□ Applicable √ Not applicable
(v) Limitation and reducing the holdings of shares of controlling shareholders, actual controllers,
restructuring side and other commitment subjects
□ Applicable √ Not applicable
156
CHANGHONG MEILING CO.,LTD. Annual Report 2020
Section VII. Preferred Stock
□ Applicable √ Not applicable
The Company had no preferred stock in the reporting.
157
CHANGHONG MEILING CO.,LTD. Annual Report 2020
Section VIII. Convertible Bonds
□ Applicable √ Not applicable
The Company had no convertible bonds in the Period
158
CHANGHONG MEILING CO.,LTD. Annual Report 2020
Section IX. Particular about Directors, Supervisors, Senior Executives and Employees
I. Changes of shares held by directors, supervisors and senior executive
Amount of
Shares held Amount of Other Shares held
Post shares
at shares increase at
Name Title Sex Age Office dated from Office dated ended decreased in changes
status period-begi in this period period-end
this period
n (Share) (Share) (share) (Share)
(Share)
Curren
Wu
Chairman tly in M 48 July 3, 2014 October 12, 2023 570,500 0 0 0 570,500
Dinggang
office
Curren
Zhong Ming Director, President tly in M 48 December 30, 2013 October 12, 2023 236,175 0 0 0 236,175
office
Curren
Yong
Director tly in M 52 September 12, 2017 October 12, 2023 0 0 0 0 0
Fengshan
office
Curren
Kou
Director, Deputy president tly in M 51 July 3, 2014 October 12, 2023 0 0 0 0 0
Huameng
office
Curren
Hu Zhaogui Director, Deputy president tly in M 47 June 21, 2018 October 12, 2023 178,050 0 0 0 178,050
office
Curren
Chen Ye Director M 56 October 12, 2020 October 12, 2023 0 0 0 0 0
tly in
159
CHANGHONG MEILING CO.,LTD. Annual Report 2020
office
Curren
Hong Yuanjia Independent director tly in M 45 October 12, 2020 October 12, 2023 0 0 0 0 0
office
Curren
Mou Wen Independent director tly in F 54 October 12, 2020 October 12, 2023 0 0 0 0 0
office
Curren
Zhao Gang Independent director tly in M 42 October 12, 2020 October 12, 2023 0 0 0 0 0
office
Office
Shi Qiang Director leavin M 52 September 12, 2017 October 12, 2020 0 0 0 0 0
g
Office
Gan Sheng
Independent director leavin M 54 July 3, 2014 October 12, 2020 0 0 0 0 0
dao
g
Office
Ren Jia Independent director leavin M 57 July 3, 2014 October 12, 2020 0 0 0 0 0
g
Office
Lu Yingjin Independent director leavin M 56 July 3, 2014 October 12, 2020 0 0 0 0 0
g
Curren
Shao Min Chairman of Supervisory tly in M 38 September 12, 2017 October 12, 2023 0 0 0 0 0
office
Curren
He Xintan Supervisor tly in M 40 September 12, 2017 October 12, 2023 0 0 0 0 0
office
160
CHANGHONG MEILING CO.,LTD. Annual Report 2020
Curren
Huang Hong Supervisor tly in F 50 September 12, 2017 October 12, 2023 0 0 0 0 0
office
Curren
Ji Ge Staff supervisor tly in F 39 December 25, 2017 October 12, 2023 0 0 0 0 0
office
Curren
Zhu Wenjie Staff supervisor tly in M 33 April 8, 2015 October 12, 2023 0 0 0 0 0
office
Curren
Liu Hongwei Executive deputy president tly in M 57 June 20, 2011 October 12, 2023 1,689,893 0 0 0 1,689,893
office
Curren
Huang
Deputy president tly in M 51 September 12, 2017 October 12, 2023 356,450 0 0 0 356,450
Danian
office
Curren
CFO (person in charge of
Pang Haitao tly in M 45 December 25, 2017 October 12, 2023 0 0 0 0 0
finance)
office
Curren
Li Xia Secretary of the Board tly in F 40 May 22, 2009 October 12, 2023 552,800 0 0 0 552,800
office
Total -- -- -- -- -- -- 3,583,868 0 0 0 3,583,868
161
CHANGHONG MEILING CO.,LTD. Annual Report 2020
II. Changes of directors, supervisors and senior executives
√ Applicable □ Not applicable
Name Title Type Date Reasons
Approved by Fourth Extraordinary General Meeting of Shareholders of
2020, Mr. Wu Dinggang was elected as the non-independent director of
Wu
Chairman Be elected October 12, 2020 the 10th BOD; Approved by 1st session of 10th BOD, Mr. Wu Dinggang
Dinggang
was elected as the chairman of the 10th BOD with service term same as
the 10th BOD
Approved by Fourth Extraordinary General Meeting of Shareholders of
Director Be elected October 12, 2020 2020, Mr. Wu Zhong Ming was elected as the non-independent director
of the 10th BOD with service term same as the 10th BOD
Zhong Approved by 1st session of 10th BOD, Mr. Zhing Ming was elected as
Ming Deputy president Appointment October 12, 2020 the deputy president of the 10th BOD with service term same as the 10th
BOD
Approved by 4th session of 10th BOD, Mr. Zhing Ming was elected as
President Appointment December 11, 2020
the president of the 10th BOD with service term same as the 10th BOD
Approved by Fourth Extraordinary General Meeting of Shareholders of
Yong
Director Be elected October 12, 2020 2020, Mr. Yong Fengshan was elected as the non-independent director
Fengshan
of the 10th BOD with service term same as the 10th BOD
Approved by Fourth Extraordinary General Meeting of Shareholders of
Director Be elected October 12, 2020 2020, Mr. Kou Huameng was elected as the non-independent director of
the 10th BOD with service term same as the 10th BOD
Kou Approved by 1st session of 10th BOD, Mr. Kou Huameng was elected as
Huameng the deputy president, at the same time acting as president, with service
Deputy president Appointment October 12, 2020 term same as the 10th BOD. Approved by 4th session of 10th BOD, Mr.
Zhong Ming was elected as the president, Mr. Kou Huameng no longer
acts as the president.
Approved by Fourth Extraordinary General Meeting of Shareholders of
Director Be elected October 12, 2020 2020, Mr. Hu Zhaogui was elected as the non-independent director of
Hu
the 10th BOD with service term same as the 10th BOD
Zhaogui
Approved by 1st session of 10th BOD, Mr. Hu Zhaogui was elected as
Deputy president Appointment October 12, 2020
the deputy president, with service term same as the 10th BOD
Approved by Fourth Extraordinary General Meeting of Shareholders of
Chen Ye Director Be elected October 12, 2020 2020, Mr. Chen Ye was elected as the non-independent director of the
10th BOD with service term same as the 10th BOD
Approved by Fourth Extraordinary General Meeting of Shareholders of
Hong Independent
Be elected October 12, 2020 2020, Mr. Hong Yuanjia was elected as the independent director of the
Yuanjia director
10th BOD with service term same as the 10th BOD
Mou Wen Independent Be elected October 12, 2020 Approved by Fourth Extraordinary General Meeting of Shareholders of
162
CHANGHONG MEILING CO.,LTD. Annual Report 2020
director 2020, Ms. Mou Wen was elected as the independent director of the 10th
BOD with service term same as the 10th BOD
Approved by Fourth Extraordinary General Meeting of Shareholders of
Independent
Zhao Gang Be elected October 12, 2020 2020, Mr. Zhao Gang was elected as the independent director of the 10th
director
BOD with service term same as the 10th BOD
Resign after The company‘s board of directors is re-elected and resigns after the term
Shi Qiang Director October 12, 2020
term of office expires.
Gan Sheng Independent Resign after The company‘s board of directors is re-elected and resigns after the term
October 12, 2020
dao director term of office expires.
Independent Resign after The company‘s board of directors is re-elected and resigns after the term
Ren Jia October 12, 2020
director term of office expires.
Independent Resign after The company‘s board of directors is re-elected and resigns after the term
Lu Yingjin October 12, 2020
director term of office expires.
Approved by Fourth Extraordinary General Meeting of Shareholders of
2020, Mr. Shao Min was elected as the Supervisory of the 10th Board of
Chairman of
Shao Min Be elected October 12, 2020 Supervisors; Approved by 1st session of 10th Board of Supervisors, Mr.
Supervisory
Shao Min was elected as the Chairman of Supervisory of the 10th Board
of Supervisors with service term same as the 10th Board of Supervisors
Approved by Fourth Extraordinary General Meeting of Shareholders of
He Xintan Supervisor Be elected October 12, 2020 2020, Mr. He Xintan was elected as the Supervisor of the 10th Board of
Supervisors with service term same as the 10th Board of Supervisors
Approved by Fourth Extraordinary General Meeting of Shareholders of
Huang
Supervisor Be elected October 12, 2020 2020, Ms. Huang Hong was elected as the Supervisor of the 10th Board
Hong
of Supervisors with service term same as the 10th Board of Supervisors
After democratic election by 4th session of the
Ji Ge Staff supervisor Be elected September 9, 2020 8th employee representative meeting, Ms. Ji Ge was elected as the
employee supervisor of the 10th board of supervisors.
After democratic election by 4th session of the
Zhu
Staff supervisor Be elected September 9, 2020 8th employee representative meeting, Mr. Zhu Wenjie was elected as the
Wenjie
employee supervisor of the 10th board of supervisors.
Approved by 1st session of 10th BOD, Mr. Liu Hongwei was appointed
Liu Executive deputy
Appointment October 12, 2020 as the executive deputy president, with service term same as the 10th
Hongwei president
BOD
Huang Approved by 1st session of 10th BOD, Mr. Huang Danian was appointed
Deputy president Appointment October 12, 2020
Danian as the deputy president, with service term same as the 10th BOD
Approved by 1st session of 10th BOD, Mr. Pang Haitao was appointed as
Pang CFO (person in
Appointment October 12, 2020 the CFO (person in charge of finance), with service term same as the
Haitao charge of finance)
10th BOD
Secretary of the Approved by 1st session of 10th BOD, Ms. Li Xia was appointed as the
Li Xia Appointment October 12, 2020
Board secretary of the Board, with service term same as the 10th BOD
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CHANGHONG MEILING CO.,LTD. Annual Report 2020
III. Post-holding
(i) Professional background, major working experience and present main responsibilities in Company of
directors, supervisors and senior executive at the present
1. Wu Dinggang, male, the Han nationality from Suining, Sichuan Province, was born in March 1973, Member of
CPC, owns bachelor degree, graduate from Tianjin University of Commerce China (Tianjin University of
Commerce now), major in refrigeration equipment and cryogenic technique. He served successively as GM of
Suining Sale Branch and Chengdu Sales Branch of Sichuan Changhong Electric Co., LTD, director of Sichuan
and Chongqing Marketing Management Department of Sichuan Changhong Electric Co., LTD, deputy GM of
Changhong Electronics (China) Marketing Co., GM of market planning center of Changhong Multimedia Industry,
director and GM of Le-Jia-Yi Chain Management Co., Ltd., Zhongke Meiling Cryogenic Technology Co., Ltd.
director and GM of Sichuan Changong Air Conditioner Co., Ltd and deputy president, president, deputy chairman
and Party Secretary of the Company. Currently he serves as director, vice GM of Sichuan Changhong Electric Co.,
Ltd., chairman of the Company; Chairman of Zhongshan Changhong Electric Co., LTD; Chairman of Sichuan
Changhong Air-conditioner Co., Ltd. and Chairman of Zhongke Meiling Cryogenic Technology Co., Ltd.
2. Zhong Ming, male, the Han nationality from Meishan, Sichuan Province, was born in November 1972, member
of CPC, a senior engineer, doctoral degree, EMBA degree from University of Science and Technology of China,
PhD degree in Engineering Thermophysics. He successively served as deputy director of research institution of
Sichuan Changhong Air-conditioner Co., Ltd., deputy GM of Sichuan Changhong Air-conditioner Co., Ltd. and
technical director of household appliance group of Sichuan Changhong Electric Co., LTD. He serves as director
President and Party Secretary of the Company currently and Chairman of Hefei Meiling Wulian Technology Co.,
Ltd.
3. Yong Fengshan, male, Han nationality, was born in Dingyuan, Anhui in June 1968, a member of the Communist
Party of China, a senior accountant, and a master degree holder. He ever took the posts of the director of finance
department of Hefei Cable Factory, the director of finance division and the deputy chief accountant of Hefei
Meiling Co., Ltd., the director of Hefei Department Store Co., Ltd., the deputy general manager and chief
accountant of Hefei Meiling Group Holding Co., Ltd., the secretary of the party committee and the president of
Hefei Industrial Investment Holdings Co., Ltd., the president of CAS (Hefei) Institute of Technology Innovation
Co., Ltd., the vice president of Whirlpool (China) Co., Ltd., the president of Hefei Venture Capital Guidance Fund
Co., Ltd. , and the director of the Company.
4. Kou Huameng, male, the Han nationality from Yanting, Sichuan Province, was born in February 1970, Member
of CPC, master degree candidate, EMBA graduate from UESTC. He served successively as deputy director of
production office of Sichuan Changhong Electric Co., LTD, director of Guangxi Marketing management
Committee, director of Fujian-Jiangxi Marketing Management, General Manager of Changhong Audiovisual
Company and director and GM of Guangdong Changhong Digital Technology Co., Ltd.; Sichuan Changhong
Electric Co., Ltd, director of development management department of Sichuan Changhong Electric Co., Ltd., and
164
CHANGHONG MEILING CO.,LTD. Annual Report 2020
director of Changhong Huayi Compressor Co., Ltd.; now he serves as director and deputy president of the
Company.
5. Hu Zhaogui, male, the Han nationality, born in Feixi Hefei in October 1974, a member of the Communist Party
of China, holds a master‘s degree, graduated from Chongqing University as a master of business administration.
He has served successively as the head of marketing and sales department stationed abroad of Hefei Meiling Co.,
Ltd., assistant president and general manager of the freezer and washing machine business division, and general
manager of the domestic marketing division. He is currently the director and vice president of the Company and
the general manager of Sichuan Changhong Air Conditioner Co., Ltd., a subsidiary of the Company.
6. Chen Ye, male, Han nationality, born in November 1963, Changzhou, Jiangsu, senior engineer, holds a master
degree, graduated from HKUST Business School with a master's degree in business administration. He once
served as an engineer of the 46 physical and chemical analysis center of the electronics department, the deputy
general manager of Tianjin Xinxing Electronics Co., Ltd., the chairman and president of Sichuan Top Software
Co., Ltd., the general manager of Beijing Hongli Nike Technology Co., Ltd., and the manager of the planning
technology department of Sichuan Changhong Electric Co., Ltd. Minister and other positions. He is currently the
deputy director of the Asset Management Department of Sichuan Changhong Electric Co., Ltd., the general
manager of Sichuan Changhong Innovation Investment Co., Ltd., the general manager of Chengdu Changhong
Technology Co., Ltd., and the director of the Company.
7. Hong Yuanjia, male, Han nationality, born in February 1975, Shantou, Guangdong, holds a master degree,
graduated from Shanghai University of Finance and Economics majoring in international business management,
and is Fudan University MPAcc (Master of Accounting), CPA, International Accountant (AIA), intermediate
accountant, and intermediate economist. He once served as the foreign currency payable supervisor and
investment supervisor of China Eastern Airlines Co., Ltd., the deputy manager of the financial department of the
Shanghai Representative Office of Sancheng Hongji (Hong Kong) Co., Ltd., the accounting manager of General
Electric Lighting Co., Ltd., the accounting manager of General Electric Industrial Supply Co., Ltd., and Chief
Financial Officer of Lingji Electronics (General Electrical Industry System Power Supply). He is currently the
Chief Financial Officer of Asia Pacific Region of Yiluo Technology (Shanghai) Co., Ltd. and an independent
director of the Company.
8. Mou Wen, female, Han nationality, born in September 1965, Hengshan, Hunan, holds a master's degree, an
accountant, and holds a master's degree in business management from Sichuan University. She previously served
as a lecturer in the School of Business Administration of Sichuan University, an Associate Professor of
Accounting in the School of Business Administration of Sichuan University, an independent director of Tibet
Mineral Development Co., Ltd., Sichuan Jinlu Group Co., Ltd., Huayi Compressor Co., Ltd., Jinhui Liquor Co.,
Ltd., Sichuan Teway Food Co., Ltd., and Hebei Baoli Engineering Equipment Group Co., Ltd., a member of
Investment Decision Advisory Committee of Sichuan Chuanjiao Road and Bridge Co., Ltd., and financial
consultant of Sichuan Daka Electric Co., Ltd., etc. She is currently Associate Professor and Master Supervisor of
Business School of Sichuan University, and an independent director of Chengdu Guibao Science and Technology
Co., Ltd., Mianyang Fulin Precision Machinery Co., Ltd., Sichuan Joyou Digital Technology Co., Ltd., Tibet
165
CHANGHONG MEILING CO.,LTD. Annual Report 2020
Mineral Development Co., Ltd., and an independent director of the Company.
9. Zhao Gang, male, Han nationality, born in April 1977, Peixian, Jiangsu Province, is a member of the
Communist Party of China, holds a doctoral degree, graduated from the University of Science and Technology of
China majoring in power engineering and thermophysics. He once served as a post doctorate and an associate
professor in the Department of Mechanics and Mechanical Engineering of the University of Science and
Technology of China, a professor of orbital systems in the Department of Electronic Science and Technology, a
special researcher for foreigners in the Japan Society for the Promotion of Science, School of Engineering,
Kyushu University, Japan, and a senior research scholar in the Department of Mechanical Engineering at the
University of Washington. He is currently the executive director, professor and doctoral supervisor of the
Department of Electronic Science and Technology of the University of Science and Technology of China, the
deputy director of the Anhui Life Resources Conservation and Artificial Organ Engineering Technology Research
Center, a part-time professor of the Department of Mechanical Engineering of the University of Washington, and
an independent director of the Company.
10. Shi Qiang, male, Han nationality, was born in July 1968, a member of the Communist Party of China, earned a
bachelor‘s degree in underwater sound electronic engineering from Southeast University, and is an engineer. He
successively served as the office secretary of Changhong Company, director of quality management division, the
director of goods and material department, liaison office of overseas marketing, the director of asset management
department, deputy minister, minister, director of the office of the board of directors; Director of Sichuan
Changhong New Energy Technology Co., Ltd.; Director of Sichuan Changhong Power Source Co., Ltd.; Director
of Changhong Meiling Co., Ltd. He has ceased to serve as a director of the company since the expiration of his
term on October 12, 2020.
11. Gan Shengdao, male, the Han nationality from Tianchang, Anhui Province, was born in March 1967, member
of China Democratic National Construction Association, member of the Central Committee of the China
Democratic National Construction Association, new century outstanding talent of the Ministry of Education, a
doctoral candidate and Doctor of Economic. He served successively as teaching assistant, lecturer and associate
professor in Department of National Economic Management of Sichuan University, the associate professor and
professor in Department of Business Administration of Sichuan University, professor, doctoral supervisor, and
post-doctoral co-supervisor of Business School of Sichuan University. An independent director of Liangshan
Rural Commercial Bank Co., Ltd., an independent director of Chengdu Rainbow Electric (Group) Co., Ltd., an
independent director of Yibin Wuliangye Co., Ltd., an independent director of Sinoseal Holding Co.Ltd., an
independent director of Sichuan Yahua Industrial Group Co., Ltd., and an independent director of the Company.
He has ceased to serve as an independent director of the company since the expiration of his term on October 12,
2020.
12. Ren Jia, male, Han nationality, was born in Nantong, Jiangsu in July 1963, a master degree holder, and
graduated from the Department of Materials Science and Engineering of Tsinghua University. He ever took the
posts of the assistant general manager of Beijing Building Materials Imp. & Exp. Co., Ltd., the department deputy
manager of Jiangsu Overseas Group Co., Ltd., the department deputy manager and assistant general manager of
166
CHANGHONG MEILING CO.,LTD. Annual Report 2020
Jiangsu Economic and Trade Corporation, the general manager of Import and Export Company of Zhejiang
Xiangyang Group, the director and general manager of Nanjing Shenlu Textile & Apparel Co., Ltd., the deputy
general manager of Guangzhou Anyka Microelectronics Co., Ltd., the deputy general manager of Shanghai
Multimedia Valley Investment Co., Ltd., independent director of Kingnet Co., Ltd., the partner of Shanghai Heda
Enterprise Management Partnership (limited partnership), vice president of SIMIC Group Co., Ltd., and
independent director of Changhong Meiling Co., Ltd. He has ceased to serve as an independent director of the
company since the expiration of his term on October 12, 2020.
13. Lu Yingjin, male, the Han nationality, was born in October 1964, Member of CPC, a doctoral candidate,
Doctor of Management Science and Engineering of the UESTC. He served successively as Assistant Engineer of
Shenli Field Drilling Technical Company, lecturer of Staff Education and Training Center of South-West
Petroleum Bureau, and independent director of Changhong Meiling Co., Ltd. He teaches in UESTC since
2002.And he has been a visiting scholar in the department of computer science at the University of Kentucky in
the United States. . He has ceased to serve as an independent director of the company since the expiration of his
term on October 12, 2020.
14. Shao Min, male, Han nationality, was born in Linyi, Shandong in March 1983, and earned a bachelor‘s degree
in accounting major from Xi‘an Jiaotong University. He joined in work in July 2004, and ever served as the
finance manager of the branch office of Sichuan Changhong Electric Co., Ltd., the financial director of finance
department, the project manager of asset management department, the director of asset management department,
and the director of asset operation department of Sichuan Changhong Electric Co., Ltd. He currently serves as the
deputy director of asset management department of Sichuan Changhong Electric Co., Ltd., director of Changhong
Huayi Compressor Co., Ltd., and the chairman of the Board of Supervisors of the Company.
15. He Xintan, male, Han nationality, was born in Xiayi, Henan in April 1980, a member of the Communist Party
of China, an economist, and earned a master‘s degree in management science and engineering from Xi‘an
Jiaotong University. He joined in work in July 2002, and successively took the posts of the operations
management director of operation management department and the manager of general management office of
Sichuan Changhong Electric Co., Ltd. Currently he serves as the deputy director of development and management
department of Sichuan Changhong Electric Co., Ltd., and a director of Changhong Huayi Compressor Co., Ltd.,
and a supervisor of the Company.
16. Huang Hong, female, Han nationality, was born in Shehong, Sichuan in June 1970, a member of the
Communist Party of China, a master degree holder, graduated from the University of Glasgow as a MBA, and a
senior auditor. She joined in work in July 1992, and ever served as the financial director of finance department,
the audit manager, marketing audit director, and audit chief of auditing department of Sichuan Changhong Electric
Co., Ltd. He currently serves as the deputy director of auditing department and the deputy director of labor union
audit committee of Sichuan Changhong Electric Co., Ltd., and a supervisor of the Company.
17. Ji Ge, female, Han nationality, was born in Nanyang, Henan Province in January 1982, a member of the
Communist Party of China, and earned a bachelor‘s degree in law from Hunan University and a master‘s degree
167
CHANGHONG MEILING CO.,LTD. Annual Report 2020
from Anhui University. She joined Hefei Meiling Co., Ltd. in July 2005 and once served as the legal specialist of
legal department, the sponsor of legal affairs, and the intellectual property director of the legal department of the
Company. She currently serves as staff supervisor of the Company, the director of the legal department of the
Company, director of office of Party Committee, member of commission for Discipline Inspection, and director of
Discipline Inspection office
18. Zhu Wenjie, male, the Han nationality from Hefei, Anhui Province, member of Communist Party of China,
born in January 1988, a master degree，graduated from University of science and technology of China as a MBA.
He started to work in Hefei Meiling Co., Ltd. in July 2010 after graduation, served as an accountant for big
customer accounting in financial management department of Hefei Meiling Co., Ltd., securities affairs assistant at
the office of secretary of the board, and director of securities affairs, and currently serves as the representative of
the Company's securities affairs, director of securities affairs at the office of secretary of the board, and staff
supervisor of the Company.
19. Liu Hongwei, Male, Chinese American, bored in May 1963, Doctor of Applied Mechanics from Lehigh
University, graduate from department of mechanical engineering, Tsinghua University. He served successively in
Kulicke and Soffa Industries, Pennsylvania; Tessera Technology Corporation, Califonia; serves technical and
management post in Intel Corporation in Silicon Velleg. He joints the Hefei Meiling Co., Ltd. in 2007, now he
serves as executive deputy president of the Company.
20. Huang Danian, male, Han nationality, was born in Huaining, Anhui in November 1969, a member of the
Communist Party of China, an engineer, and a master degree holder. He once served as the logistics director and
the deputy general manager, the director of the human resources department, the director of the comprehensive
planning department, the director of the enterprise management department, and the assistant to the general
manager of Sales Company of Hefei Meiling Co., Ltd. He is now the vice president of Hefei Meiling Co., Ltd.
21. Pang Haitao, male, Han nationality, was born in Qionghai, Hainan in May 1975, a member of the Communist
Party of China, a senior accountant, a senior political engineer, and a bachelor degree holder, and earned the
EMBA degree from Jiangxi University of Finance and Economics. He used to be a member of the finance
department, the director of related transactions and the director of capital operations of Sichuan Changhong
Electric Co., Ltd., the chief of finance office of Guangdong Changhong Electronics Co., Ltd., the director of
general ledger, the head of general management office, and the head of general ledger management office of the
finance department of Sichuan Changhong Electric Co., Ltd., the deputy general manager and chief financial
officer of Sichuan Changhong Development Co., Ltd., the deputy general manager and chief accountant of Huayi
Compressor Co., Ltd. Currently he is the chief financial officer (person in charge of finance) of the Company.
22. Li Xia, female, the Han nationality from Qionglai, Sichuan Province, was born in October 1980, Member of
CPC and Intermediate Accountant with Master Degree. She graduated from Accounting Department of Sichuan
University Business and Management School. She ever was Project Manager in Financing & Acquisition Office
of Asset Management Department and Business Executive in Board Office of Sichuan Changhong Electronic Co.,
Ltd. she took the posts of Deputy GM and Financial Supervisor of Sichuan Changhong Innovation Investment Co.,
168
CHANGHONG MEILING CO.,LTD. Annual Report 2020
Ltd., and chairman of supervisory committee of Zhongke Meiling Cryogenic Technology Co., Ltd. She is the
Secretary of the Board, deputy secretary of the Party and secretary of discipline inspection commission of the
Company recently.
(ii) Post-holding in shareholder’s unit
√ Applicable □ Not applicable
Drawing
remuneration and
Start date of office End date of
Name Title allowance from
Shareholder‘s unit term office term
shareholder‘s unit
(Y/N)
Director 2020.06.30 2023.06.29 N
Wu Dinggang Sichuan Changhong Electric Co., Ltd.
Deputy GM 2019.01.12 2023.06.29 Y
Hefei Industry Investment Holding Party Secretary,
Yong Fengshan 2015.02.13 - Y
(Group) Co., Ltd. Chairman
Deputy director of
Chen Ye Sichuan Changhong Electric Co., Ltd. assets management 2020.07 - Y
department
Director of assets
Shao Min Sichuan Changhong Electric Co., Ltd. management 2019.02.01 - Y
department
Director of
development and
He Xintan Sichuan Changhong Electric Co., Ltd. 2019.02.01 - Y
management
department
Sichuan Changhong Electronics Holding Deputy director of
Huang Hong 2011.09.16 - Y
Group Co., Ltd. auditing department
Post-holding in shareholder‘s unit N/A
(iii) Post-holding in other unit
√ Applicable □ Not applicable
Drawing
Start date of End date of remuneration and
Name Title
Other unit office term office term allowance from
other unit (Y/N)
Sichuan Zhiyijia Network Technology Co., Ltd. Director 2015.01 - N
Wu Zhongshan Changhong Electric Co., Ltd. Chairman 2015.11.26 - N
Dinggang Sichuan Changhong Air Conditioning Co., Ltd. Chairman 2017.09.11 - N
Zhongke Meiling Cryogenic Technology Co., Chairman 2017.08.21 2021.08.26 N
169
CHANGHONG MEILING CO.,LTD. Annual Report 2020
Ltd.
Lejiayi Chain Management Co., Ltd. Chairman 2019.04.25 - N
Sichuan Kuaiyidian Electrical Service Chain
Chairman 2019.06.10 - N
Co., Ltd.
Director 2015.05.18 N
Whirlpoor (China) Co., Ltd. 2022.09.18
Vice Chairman 2015.07.10 N
Hefei Venture Capital Guidance Fund Co., Ltd. Chairman 2015.04.17 - N
CAS (Hefei) Technical Innovation Engineering
Chairman 2015.04.17 - N
Institute Co., Ltd.
Hefei State-owned Assets Holding Co., Ltd. Chairman 2015.04 - N
Yong
Fengshan Hefei Industry Investment Holding Co., Ltd. Chairman, GM 2014.09 - N
Anhui Integrated Circuit Industry Capital Co.,
Chairman 2017.05 - N
Ltd.
Jianghuai Automobile Co., Ltd. Director 2018.07.20 2021.07.19 N
Industrial Investment (HK) Ltd Director 2017.04 - N
Hefei Smart Energy Innovation Platform Co.,
Director 2017.06 - N
Ltd.
Kou
Changhong Huayi Compressor Co., Ltd. Director 2015.04.16 2020.12.22 N
Huameng
Lejiayi Chain Management Co., Ltd. Director 2018.01.23 - N
Sichuan Zhiyijia Network Technology Co., Ltd. Director 2019.07.25 - N
Hu
Hongyuan Ground Energy Heat Tech. Co., Ltd. Vice Chairman 2017.12.27 - N
Zhaogui
Sichuan Tianyou Guigu Technology Co., Ltd. Director 2018.01.16 - N
Chengdu Guigu Environmental Tech. Co., Ltd. Director 2018.06.30 - N
Sichuan Changhong Innovation Investment Co.,
GM 2017.02.21 - N
Chen Ye Ltd.
Chengdu Changhong Technology Co., Ltd. GM 2019.10 - N
Shao Min Changhong Huayi Compressor Co., Ltd. Director 2021.02.25 2021.05.17 N
Chief Financial
Hong
Yiluo Technology (Shanghai) Co., Ltd. Officer in Asia 2014.06 - Y
Yuanjia
Pacific
Associate professor,
Business School of Sichuan University 1995.02 - Y
master tutor
Mou Wen
Chengdu Sibao Technology Co., Ltd. Independent director 2017.05.05 2021.12.07 Y
Mianyang Fulin Precision Machinery Co., Ltd. Independent director 2017.06.23 2023.06.30 Y
170
CHANGHONG MEILING CO.,LTD. Annual Report 2020
Sichuan Junyi Digital Technology Co., Ltd. Independent director 2019.01.03 2022.01.02 Y
Tibet Mining Development Co., Ltd. Independent director 2021.03.09 2024.03.08 Y
Department
Zhao Executive Director,
University of Science and Technology of China 2011.04 - Y
Gang Professor, Doctoral
Supervisor
He
Changhong Huayi Compressor Co., Ltd. Director 2018.01.05 2021.05.17 N
Xintan
Pang
Hefei Xingmei Asset Management Co., Ltd. Director 2018.02.05 - N
Haitao
Post-holding in other unit N/A
(iv) Punishment of securities regulatory authority in recent three years to the company’s current and
outgoing directors, supervisors and senior management during the reporting period
□ Applicable √ Not applicable
IV. Remuneration of directors, supervisors and senior executives
(i) Decision-making, determine basis and actually payment of remuneration for directors, supervisors and
senior executives
1. Procedure for deciding remunerations of directors, supervisors and senior management
Implemented in line with laws, regulations and relevant rules of ―Company Law‖, ―Article of Association‖ and
―Enforcement Regulation of Remuneration and Evaluation Committee of the Board‖, including:
(1) Allowance plan of independent directors are implemented after deliberated in the Board and approved in
Shareholders‘ General Meeting. Other directors and non-staff supervisors except independent directors are
received no remuneration from the Company.
(2) Remuneration of senior executives are deliberated and approved by the Board according to remuneration
evaluation plan together with opinions of Remuneration and Evaluation Committee.
The remuneration appraisal and payment for directors and senior executive of the Company for Current Year will
disclose in the Annual Report after review without objection from Remuneration & Appraisal Committee of the
Board and submit to the BOD for Current Year.
2. Bases on which remunerations of directors, supervisors and senior management are decided
The Company conducted the performance examination on the task of directors, supervisors and senior executives
according to the HR management policy, wages of directors, supervisors and senior executives are decided by
their performance and evaluations check by the Company. All wages are performing by the evaluation results
according to the only evaluation standard that carried by the Company.
3. Actual payment of remunerations of directors, supervisors and senior management
Allowance of the independent directors are paid by the standards approved in Annual Shareholders‘ General
Meeting, other director, who serves as senior executive at the same time, and non-staff supervisors except
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CHANGHONG MEILING CO.,LTD. Annual Report 2020
independent directors did not received remuneration from the Company; remunerations for senior executives of
the Company are paid strictly by the unify remuneration valuation mechanism of the Company.
Directors, supervisors and senior executives of the Company has 18 in total up to 31 December 2020, actually 12
person receiving remuneration from the Company, 2 staff supervisors are received their remuneration by actual
positions (non-supervisor post); furthermore, 3 independent directors are received the allowance monthly from the
Company; the Company will pay remuneration to senior executives in line with the performance appraisal by
monthly, quarterly and annual.
During the reporting period, the Company has established the executive compensation and performance
management program for the senior management of 2020 in accordance with the main scope, the responsibilities,
the importance of the management positions of the senior management, and the compensation level of other
relevant company and position, the program includes but not limited to the company's key performance indicator
(KPI) and performance evaluation criteria, procedures and major evaluation system; the major programs and
systems of the reward and punishment; review the performance of duties of the company's senior management and
conduct the annual performance appraisal.
At the end of Current Year, the Remuneration and Appraisal Committee combined the work report and
self-evaluation of the senior management in 2020, followed the performance evaluation criteria and procedures,
and evaluated the Key Performance Indicator (KPI) of the senior management in 2020; and other relevant
indicators of performance evaluation; proposed the remuneration amount and performance appraisal approach of
the senior management based on the job performance evaluation results and the remuneration policy, and reported
to the Board for approval.
(ii) Remuneration for directors, supervisors and senior executives in reporting period
In 10 thousand Yuan
Total Whether
remuneration remuneration
Name Title Sex Age Post status obtained from obtained from
the Company related party of
(before taxes) the Company
Wu Dinggang Chairman M 48 Currently in office 0 Y
Zhong Ming Director, President M 48 Currently in office 32.05 N
Yong Fengshan Director M 52 Currently in office 0 Y
Kou Huameng Director, Deputy president M 51 Currently in office 41.19 N
Hu Zhaogui Director, Deputy president M 47 Currently in office 43.78 N
Chen Ye Director M 56 Currently in office 0 Y
Hong Yuanjia Independent director M 45 Currently in office 2.59 N
Mou Wen Independent director F 54 Currently in office 2.59 N
Zhao Gang Independent director M 42 Currently in office 2.59 N
Shi Qiang Director M 52 Office leaving 0 Y
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CHANGHONG MEILING CO.,LTD. Annual Report 2020
Gan Sheng dao Independent director M 54 Office leaving 9.31 N
Ren Jia Independent director M 57 Office leaving 9.31 N
Lu Yingjin Independent director M 56 Office leaving 9.31 N
Shao Min Chairman of Supervisory M 38 Currently in office 0 Y
He Xintan Supervisor M 40 Currently in office 0 Y
Huang Hong Supervisor F 50 Currently in office 0 Y
Ji Ge Staff supervisor F 39 Currently in office 26.50 N
Zhu Wenjie Staff supervisor M 33 Currently in office 24.37 N
Liu Hongwei Executive deputy president M 57 Currently in office 47.46 N
Huang Danian Deputy president M 51 Currently in office 32.70 N
CFO (person in charge of
Pang Haitao M 45 Currently in office 34.07 N
finance)
Li Xia Secretary of the Board F 40 Currently in office 29.06 N
Total -- -- -- -- 346.88 --
(iii) Equity incentive authorized for director, supervisor and senior executive in reporting period
□ Applicable √ Not applicable
V. Staff of the Company
Changhong Meiling Co., Ltd. and its controlling subsidiaries owned on-job employees of 14,907 people in total.
There are 89 people in retired are enjoying expenses paid by the Company.
(i) Numbers, professional structure and education background
On-job employee in parent company (people) 4,290
On-job employee in main subsidiary (people) 10,617
Total on-job employees (people) 14,907
Current total payroll(people) 14,907
Number of retired employees with expenses paid by the parent company and main subsidiary (people) 89
Professional structure
Types of professional category Numbers of professional category (people)
Production staff 8,718
Salesman 3,395
Technician 2,255
Financial staff 192
Administration staff 347
Total 14,907
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CHANGHONG MEILING CO.,LTD. Annual Report 2020
Education background
Type of education background Numbers (people)
High school and below 10,382
Junior college 2,043
Undergraduate 2,319
Master and above 163
Total 14,907
(ii) Remuneration policy
The Company formulated human resources and compensation policy conducive to sustainable development of
enterprise according to the provisions of relevant laws and policies promulgated by the state and to the Company's
actual situation.
In order to implement the core values of co-creation and sharing, especially to mobilize the work initiative and
enthusiasm of grass-roots employees, based on the overall design idea of ―building a small management & control
platform, making a refined business platform and a one-line decision-making power‖, further decentralization,
effectively activate the team. On this basis, further optimize the incentive plan in 2020; perfected management a
three-tiered incentive system, i.e. business performance incentives, value mainline incentives, and event incentive,
to improve the business unit‘s operating efficiency and vitality; promoted the development and application of the
entire process performance management system, encouraged employees to develop together with the company,
and established a direct link between management and business performance; supervisor-level KPIs were linked
with performance pay; implemented mandatory performance rankings for professional positions, and guided
managers and employees to make performance contributions to the company‘s development.
The company established and optimized a unified evaluation mechanism for job promotion, set up position
systems and promotion channels, implemented the point system evaluation criteria and internal job competition
mechanism, and incorporated annual evaluation and competition into the normalization, and gradually formed the
employment mechanism of ―those who want to do a job have a chance, those who can do a job have a platform,
and those who get things done have a status‖. At the same time, the company shaped the corporate culture by
providing various holidays, allowances, condolences, and organizing a variety of leisure activities, sports culture
festival, carnivals, etc. so as to improve the employee satisfaction.
(iii) Training plans
Training plan: The Company has established the Human Resources Strategic Layout, Staff Training Management
Program, Credit Management Method, Annual Talent Development & Training Plan and other systems and
standard work flows, set up the staff capacity model, built the knowledge assets management system of
Changhong Meiling and gradually established the growth mechanism by combining the training with the
individual employee development, and combining the qualification promotion with the career development.
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CHANGHONG MEILING CO.,LTD. Annual Report 2020
1. The mechanism for the selection, education and use of reserve talents gradually presented. In 2020, the
Company established a clear evaluation model for talent standards, on the basis of completing the construction of
the personnel standard for management and executive level, the talent standards for various professional positions
have been established; Focused on advancing the project for talent construction, and optimized the high-level
talent development echelons such as reserve leaders, reserve cadres, reserve leaders, and outstanding university
students, and so on; establish succession maps for each sequence of talents, and clarify the ability status of
existing talent teams and future talent succession systems.
2. Talent cultivation is more effective in supporting the development of the company. In order to effectively
support the company‘s business policy of ―product leadership, marketing transformation, efficiency improvement,
team activation‖, the company released the Human Resources Strategic Plan of Changhong Meiling, on the one
hand, improve the training enthusiasm and development capabilities of R & D personnel through the project
points-based system, industry exchanges and other activities, on the other hand, aim at the shortcomings of team
and personal ability, and promote accurate training programs, focus on actual working scenes, targeted at the core
talent-oriented push courses, and the training effect gradually appears and the number of talents gradually
increases.
3. In-depth construction of internal knowledge asset management system, including the two major contents, i.e.
construction of ―Meiling School‖ and ―Star here‖ live broadcast. On the one hand, improve the online knowledge
asset management system "Meiling School", comprehensively started and advanced the talent knowledge asset
bank of ―Technical School, Management School, Manufacturing School, and Quality School‖; on the other hand,
sorted out, on the basis of ―internal trainer certification system‖ and ―bench-marking post knowledge extraction
project‖, launched a new series of live courses, internalize the standardized talent knowledge base and carry out
inheritance and influence.
(iv) Labor outsourcing
□ Applicable √ Not applicable
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CHANGHONG MEILING CO.,LTD. Annual Report 2020
Section X. Corporate Governance
I. Corporate governance of the Company
(i) Overview of the corporate governance
In strict compliance with the Company Law, Securities Law, Governance Principles of Listed Company issued by
the CSRC, the Rules Governing the Listing of Securities on Shenzhen Stock Exchange, and Guidelines for
Standardized Operation of Listed Companies, the Company continued to construct and perfect its governance
structure, thereby forming its decision-making, supervision and operation management organization with general
meeting, the board of directors, the board of supervisors and operation management as the major structure. The
general meeting, board of directors, board of supervisors and operation management of the Company has definite
terms of reference, which can ensure an effective balance, scientific decision-making process and coordinative
operation, laying firm foundation for making decisions relating to the Company‘s continuous, steady and healthy
development.
During the reporting period, the actual situation of corporate governance has been in line with the requirements of
relevant state laws and regulations, and regulatory documents relevant to governance of listed companies issued
by China Securities Regulatory Commission and Shenzhen Stock Exchange.
1. Shareholders and general meeting
The Company standardized the procedures concerning convening, holding and voting of general meeting in strict
compliance with the Articles of Association and Rules of Procedure of General Meeting. All shareholders,
especially the minority shareholders, were equally treated to ensure all shareholders shall rank equal status and
can fully exercise their right. During the reporting period, the Company convened shareholders general meetings.
In addition to convening general meeting in forms of site conference, the Company offered convenience for
shareholders to present general meeting via network voting which was safe, economic and convenient. At the
same time, all the matters submitted to the Company‘s general meeting of shareholders should count the votes of
the small and medium investors separately, and the results of the vote count should be disclosed timely so as to
effectively protect the rights and interests of small and medium investors and ensure that all shareholders,
especially the small and medium shareholders, fully exercise their rights.
2. The Company and controlling shareholders
The Company has independent business and independent management capability. The Company and its
controlling shareholders owe independent business, personnel, assets, organs and finance. During the period,
controlling shareholder abide by requirement of Article of Association and Management System of Related
Transactions, strictly regulate their behaviors, and no controlling shareholder has directly or indirectly intervened
in the Company‘s policy-making and business activities beyond the general meeting of stockholders, no capital or
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CHANGHONG MEILING CO.,LTD. Annual Report 2020
assets of the Company occupied by controlling shareholder and its affiliates either.
3. The directors and board of directors
Board Meeting are revoke and open in line with the regulation of Company Law and Article of Association
strictly, voting and information disclosure procedures appliance with relevant rules.
During the reporting period, the company successfully completed the election of the tenth board of directors. The
company's tenth board of directors has nine directors, of which three are independent directors, accounting for one
third of all directors. The number and staff composition of the board of directors meet the requirements of laws
and regulations and the "Articles of Association". All directors of the Company carry out work according to
―Rules of Procedure of the Board‖ and ―Independent Director System‖, seriously attend the board of directors and
shareholders‘ meeting, exercise obligations by the law and faithfully perform their duties vigorously, positively
participate in trainings of related knowledge open by Shenzhen Stock Exchange and Securities Bureau, and get
familiar with related laws and regulations. Independent directors follow close to the line of Instruction of Setting
Up Independent Directors System in Listed Companies and Independent Director System, take an active part in
decision-making of the Company and present a prior approval and independent opinions for related transactions
and major events, bring out the functions of independent directors.
In the Period, Board of the Company setting up four special committees including strategy, remuneration and
appraisal, audit and nomination, each special committee respectively undertakes the functions of discussion,
policy making, supervision and assessment according to the relevant working instruction, and plays important role
in improving the scientific decision-making, decision-making efficiency and quality for the Board.
4. Supervisors and board of supervisors
The Company convened and held meeting of supervisors in strict compliance with the Company Law and Articles
of Association, and the voting and information disclosure procedures of supervisors‘ meeting complied with
relevant requirements.
During the reporting period, the company successfully completed the election of the 10th board of supervisors.
The company's tenth board of supervisors has five supervisors, including two employee supervisors. The number
and staff composition of the board of supervisors comply with the requirements of laws and regulations. Our
supervisors can carefully performed their duties including presenting at general meeting and meeting of the board
of directors in accordance to the Rules of Procedures of Board of Supervisors, to exercise supervision over the
board of directors‘ decision-making procedures, subjects to be proposed and our operation in law, to review the
periodic reports prepared by the Board and form written audit opinion in respect thereof and to make effective
supervision over our material transactions, connected transaction, financial position as well as the legality and
compliance of the performance by directors and senior management and issue independent opinions in respect
thereof.
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CHANGHONG MEILING CO.,LTD. Annual Report 2020
5. The performance appraisal and incentive and constraint mechanism
The Company owes and continues to improve fair-ness and transparency performance appraisal standards and
incentive and constraint mechanism for directors, supervisors and senior management, the engagement of
managers of the Company is open and transparent and meets the provisions of laws and regulations.
6. The stakeholders
The Company fully respects and maintains the legitimate rights and interests of stakeholders; strengthen
communication and negotiation with each other, realizes the coordination and balance of interests for all parties
including society, shareholders, company and staff, pushes forward the sustainable, steady and harmonious
development of the Company together.
7. The information disclosure and transparency
During the Period, the Company strengthens management of information disclosure, performs the duty of
information disclosure in strict accordance with the rules of related laws and regulations, Rules Governing the
stock listed on Shenzhen Stock Exchange and ―Management System of Information Disclosure‖, and appoints
Securities Times, China Securities Journal, Hong Kong Commercial Daily and Juchao Website
(www.cninfo.com.cn) for information disclosure medial; as for the major un-disclosed inside information,
exercise strictly confidential procedures and controlling persons with inside information kowned. The Company
perform duty in aspect of truthfully, accurately, timely and completely discloses information, ensures all investors
obtain the Company‘s information equally and other legal interest.
8. Investor relations management
The Company has seriously done the job of the investor relations management in accordance with the
requirements of the "Investor Relations Management System" and "Reception and Promotion system" during the
Period. Received the consultation and research of the professional institutional investors to the company, checking
records for visitors and signing letter of commitment, disclosed the "investor relations activities record" timely.
At the same time, communicated with the investors through the "interact easily" platform of Shenzhen Stock
Exchange Investor Relations; seriously received the suggestion and opinions from investors, protect interest of the
minority investors, earnestly accepted and replied the calls, faxes, and emails from the investors; cautiously dealt
with the media coverage.
(ii) Is there any difference between the actual condition of corporate governance and relevant regulations
about corporate governance for listed company from CSRC?
□Yes √ No
There are no differences between the actual condition of corporate governance and relevant regulations about
corporate governance for listed company from CSRC.
II. Independent of the Company relative to controlling shareholders’ in aspect of businesses, personnel,
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CHANGHONG MEILING CO.,LTD. Annual Report 2020
assets, organization and finance
The Company totally separated in business, personnel, assets, institutions and financial aspects from Sichuan
Changhong (controlling shareholder), with independent business accounting, responsibility and risk and
independent business operation capability.
1. The business: the Company has an independent and complete business as well as operation ability, with
specialized procurement, production, technology, marketing, management, human resources and other
departments. We autonomously manage and operate business on our own. While the management staff are
independent from controlling shareholders and their subordinate enterprises. The Company is free from
interference by controlling shareholders and other affiliates, and there is no dependence on controlling
shareholders and other affiliates.
2. The personnel: personnel, labor, personnel and salary of the Company are completely independent. President,
vice president, person in charge of finance, Secretary of the board of directors and other senior management
personnel are working in the Company and receive salary, not receiving any remuneration and holding position of
any except directors, supervisors in the controlling shareholder and its subordinate enterprises.
3. Assets: the Company owns places of production and management independent from its controlling shareholder,
owns complete assets structure, independent production system, auxiliary production systems and supporting
facilities, land use rights, ownership of houses and other assets, and independent purchase and sales system. No
assets occupied by controlling shareholders and other affiliates.
4. Institutions: the Company established organization completely independent from controlling shareholders; the
general meeting, board of directors, board of supervisors and the internal organization are capable of taking
independent action, with no controlling shareholder intervention of corporation's decision-making behavior. The
Company strengthen the power restriction system via general meeting, the Board, supervisory committee,
independent directors and vary committees, formulated an effective structure for corporate governance.
5. Financial aspects: the Company set up independent financial management, and independent accounting system
and financial management system, independently setting up banking account and tax declaration.
III. Horizontal competition
□ Applicable √ Not applicable
IV. In the report period, the Company held annual shareholders’ general meeting and extraordinary
shareholders’ general meeting
1. Annual Shareholders’ General Meeting in the report period
Ratio of
Session of meeting Type investor Date Date of disclosure Index of disclosure
participation
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CHANGHONG MEILING CO.,LTD. Annual Report 2020
Juchao
Website—(http://www.cninfo.
First Extraordinary
Extraordinary com.cn) ―Resolution Notice
General Meeting of 31.79% January 10, 2020 January 11, 2020
General Meeting of First extraordinary general
2020
meeting of 2020‖ No.:
2020-002
Juchao
Second Website—(http://www.cninfo.
Extraordinary Extraordinary com.cn) ―Resolution Notice
32.32% February 11, 2020 February 12, 2020
General Meeting of General Meeting of Second extraordinary
2020 general meeting of 2020‖ No.:
2020-009
Juchao
Website—(http://www.cninfo.
AGM of 2019 AGM 32.6543% May 29, 2020 May 30, 2020 com.cn) ―Resolution of the
AGM of 2020‖ No.:
2020-036)
Juchao
Website—(http://www.cninfo.
Third Extraordinary
Extraordinary com.cn) ―Resolution Notice
General Meeting of 33.5057% August 18, 2020 August 19, 2020
General Meeting of Third extraordinary general
2020
meeting of 2020‖ No.:
2020-063
Juchao
Website—(http://www.cninfo.
Fourth Extraordinary
Extraordinary com.cn) ―Resolution Notice
General Meeting of 32.4924% October 12, 2020 October 13, 2020
General Meeting of Fourth extraordinary
2020
general meeting of 2020‖ No.:
2020-083
Juchao
Website—(http://www.cninfo.
Fifth Extraordinary
Extraordinary com.cn) ―Resolution Notice
General Meeting of 33.6596% December 29, 2020 December 30, 2020
General Meeting of Fifth extraordinary general
2020
meeting of 2020‖ No.:
2020-107
2. Request for extraordinary general meeting by preferred stockholders whose voting rights restore
□ Applicable √ Not applicable
V. Responsibility performance of independent directors
(i)The attending of independent directors to Board meetings and general meeting
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CHANGHONG MEILING CO.,LTD. Annual Report 2020
The attending of independent directors
Times of Absent the Times of
Times of
Board meeting Times of Times of Meeting for attending the
Independent attending by Times of
supposed to present in entrusted the second shareholder
director communicatio Absence
attend in the person presence time in a row general
n
report period (Y/N) meeting
Gan Shengdao 9 1 8 0 0 N 0
Ren Jia 9 0 9 0 0 N 4
Lu Yingjin 9 1 8 0 0 N 0
Hong Yuanjia 4 1 3 0 0 N 0
Mou Wen 4 1 3 0 0 N 0
Zhao Gang 4 1 3 0 0 N 1
Explanation of absent the Board Meeting for the second time in a row:
No independent directors absent the Board Meeting for the second time in a row.
(ii) Objection for relevant events from independent directors
Whether independent directors come up with objection about company‘s relevant matters or not
□ Yes √ No
Independent directors has no objections for relevant events in reporting period
(iii) Other explanation about responsibility performance of independent directors
Whether the opinions from independent directors have been adopted or not
√ Yes □ No
Explanation on recommendations adopted or un-adopted:
During the report period, the independent directors of the 9th session of the Board, Mr. Gan Shengdao, Mr. Ren Jia
and Mr. Lu Yingjin, the independent directors of the 10th session of the Board, Mr. Hong Yuanjia, Ms. Mou Wen
and Mr.Zhao Gang, faithfully performed their duties, and prudently, earnestly and diligently exercised their rights
as independent directors in strict accordance with ―Corporation Law‖, ―Securities Law‖, ―Guidance on the
Establishment of Independent Director System in Listed Companies‖ of China Securities Regulatory Commission,
―Stock listing Rules‖ of Shenzhen Stock Exchange, ―Articles of Association‖, ―Independent Director System‖,
―Annual Report Working System of Independent Director‖, and rules of related laws and regulations, not
influenced by the major shareholders, actual controllers, or other units and individuals having a stake in the
Company, actively attended the general meeting of shareholders and board meeting, made independent opinions
on related matters, gave reasonable suggestions to the production and management and the business development
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CHANGHONG MEILING CO.,LTD. Annual Report 2020
of the Company, gave full play to the role as independent directors, and maintained the legitimate rights and
interests of shareholders of the Company, especially the medium and small shareholders.
In reporting period, independent directors propose opinions on the Board, and details of suggestions as:
Dated Items Agree/against Disclosure index
Independent opinion on relevant proposal of the 35th Juchao
January 20, 2020 th
Agreed
session of 9 BOD Website(www.cninfo.com.cn)
Independent opinion on relevant proposal of the 36th Juchao
March 26, 2020 th
Agreed
session of 9 BOD Website(www.cninfo.com.cn)
Independent opinion on relevant proposal of the 37th Juchao
April 17, 2020 th
Agreed
session of 9 BOD Website(www.cninfo.com.cn)
Independent opinion on the Company‘s application to
Juchao
May 7, 2020 some commercial banks for special credit line of bill Agreed
Website(www.cninfo.com.cn)
pool
Independent opinion on subsidiaries applying to some
Juchao
June 29, 2020 commercial banks for issuing the bank acceptance Agreed
Website(www.cninfo.com.cn)
bill by pledging the time certificates of deposit
Independent opinion on the plan of repurchasing part
Juchao
July 27, 2020 of the domestic listed foreign shares of the Company Agreed
Website(www.cninfo.com.cn)
(B-share)
Independent opinion on relevant proposal of the 41st Juchao
August 14, 2020 th
Agreed
session of 9 BOD Website(www.cninfo.com.cn)
Independent opinion on relevant proposal of the 42nd Juchao
September 18, 2020 th
Agreed
session of 9 BOD Website(www.cninfo.com.cn)
见 Independent opinion on Appointment of the Senior Juchao
October 12, 2020 Agreed
management of the Company Website(www.cninfo.com.cn)
Independent opinion on the Forward Foreign
Juchao
October 19, 2020 Exchange Transaction Already carried out in the third Agreed
Website(www.cninfo.com.cn)
quarter of 2020
Independent opinion on the guarantee provided by
controlling shareholder to apply to financial Juchao
October 27, 2020 Agreed
institutions for comprehensive credit granting and Website(www.cninfo.com.cn)
related transactions
Independent opinion on relevant proposal of the 4th Juchao
December 11, 2020 th
Agreed
session of 10 BOD Website(www.cninfo.com.cn)
VI. Responsibility performance of subordinate special committee of the Board in report period
(i) Responsibility performance for strategy committee of the Board
In accordance with the requirements of the relevant laws and regulations of the Company Law and the Listing
Rules of the Shenzhen Stock Exchange, the Strategic Committee under the Board of Directors of the company has
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CHANGHONG MEILING CO.,LTD. Annual Report 2020
strictly followed the provisions of the Articles of Association and the Working Rules of the Strategic Committee
of the Board of Directors, strictly performed their duties, and offered proposals and carried out positive guides for
the company's strategic development and foreign investments, the specific situation is as follows:
1. On 16 March 2020, the Strategic Committee convened the 10th meeting of the Strategy Committee of the 9th
Board of Directors, deliberated and approved the two proposals as development plans for year of 2020 and
Proposal on increasing capital of Zhongshan Changhong Electric Co., Ltd.
(1) According to the Company‘s medium and long term development strategy, the committee members combined
with the macroeconomic situation and industry status and summarized the annual work situation in 2019,
discussed and established the Company‘s business thoughts and business plans in 2020, and strived to achieve the
2020 business goals.
(2) In accordance with the company‘s overseas development strategy and the business development needs of its
wholly-owned subsidiary Zhongshan Changhong, in order to supplement the working capital of Zhongshan
Changhong and quickly reduce its asset-liability ratio, it‘s agreed that the company and its wholly-owned
subsidiary Changhong Air Conditioning would jointly increase capital of 150 million yuan to Zhongshan
Changhong with their own funds based on the existing shareholding ratio, of which the Company‘s capital
increase is 135 million yuan, and the capital increase of Changhong Air-conditioning is 15 million yuan. After the
capital increase is completed, the registered capital of Zhongshan Changhong will be increased to 334 million
yuan. The shareholding ratio of the company and Changhong Air Conditioning in Zhongshan Changhong remains
unchanged at 90% and 10% respectively. It‘s agreed to submit the proposal to the company's board of directors for
deliberation.
2. On December 9, 2020, the strategy committee convened the first meeting of the strategy committee of the tenth
board of directors, which reviewed and approved the Proposal on the Investment and Establishment of Hefei
Changhong Meiling Household Appliances Co., Ltd.
According to the company‘s business development needs and industrial planning, in order to ensure the realization
of the company‘s household appliances industry (including kitchen and bathroom appliances and small home
appliances) in the 14th Five-Year strategic development goals, seize the growth opportunities of consumption
upgrade and brand focus in the household appliances industry, activate the vitality of the household appliances
industry team, and establish a long-term incentive and restraint mechanism, it‘s submitted to the board of directors
to approve the company and Ningbo Hongling Enterprise Management Partnership (Limited Partnership)
(shareholding platform of household appliances industry‘s core management team, hereinafter referred to as
"partnership") to jointly invest and establish Hefei Changhong Meiling Household Appliances Co., Ltd. (tentative
name, and it‘s finally subject to the approval of the Industrial and Commercial Bureau) so as to adapt to external
market competition, realize the transformation and upgrading of the company's household appliances industry, and
promote the rapid and sound development of the household appliances industry. The registered capital of the new
company is 50 million yuan, of which 35 million yuan is invested by the company in cash, accounting for 70% of
the registered capital, and the partnership enterprise invests 15 million yuan in cash, accounting for 30% of the
registered capital. It‘s agreed to submit the proposal to the company's board of directors for deliberation.
3. On February 25, 2021, the strategy committee convened the second meeting of the strategy committee of the
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CHANGHONG MEILING CO.,LTD. Annual Report 2020
tenth board of directors, and reviewed and approved the Proposal on the Investment and Establishment of a
Wholly-owned Subsidiary by the Holding Subsidiary Zhongke Meiling Cryogenics Company Limited .
According to the strategic plan of the company and its holding subsidiary Zhongke Meiling Cryogenics Company
Limited (hereinafter referred to as "Zhongke Meiling"), in order to further expand the business scope of Zhongke
Meiling in the biomedical field, deeply develop the life science sector business, and improve the core
competitiveness of Zhongke Meiling, it‘s submitted the board of directors to approve Zhongke Meiling's
investment of 10 million yuan to establish a wholly-owned subsidiary Anhui Linghe Medical Devices Co., Ltd.
(tentative name, it‘s subject to the approved name of industry and commerce) to engage in medical device R&D,
production and sales. It‘s agreed to submit the proposal to the company's board of directors for deliberation.
4. On March 19, 2021, the strategy committee held the third meeting of the strategy committee of the tenth board
of directors, and reviewed and approved the Proposal on the Company's 2021 Development Plan and Proposal on
the Company's Shareholders Return Planning in the Next Three Years (2021-2023).
(1) According to the company‘s medium and long-term development strategy, each committee summarized the
overall situation of the company‘s work in 2020 based on the company‘s macro-environmental situation and the
current status of the industry, discussed and established the company‘s 2021 business ideas, business plans, etc.,
further ensured the realization of the company‘s long-term development strategy goals.
(2) In order to further improve and complete the scientific, continuous and stable shareholder return mechanism,
increase the transparency and operability of profit distribution policies and decision-making, and effectively
protect the legitimate rights and interests of public investors, in accordance with the "Company Law" and the
Notice on Further Implementing Matters Concerning Cash Dividend Distribution of Listed Companies (ZJF [2012]
No. 37) and the Guidelines for the Supervision of Listed Companies No. 3—Cash Dividends of Listed Companies‖
(ZJHGG[2013] No. 43) issued by China Securities Regulatory Commission, and requirements of other relevant
laws and regulations and regulatory documents, and on the basis of the relevant provisions of the "Articles of
Association", after comprehensively considering the company's operating financial status and other factors, the
company's "plan for shareholder returns in the next three years (2021-2023)" formulated by the company. The
Company's Shareholders Return Planning in the Next Three Years (2021-2023) formulated by the company has
been approved. It‘s agreed to submit this matter to the company's board of directors for deliberation.
(ii) Responsibility performance for audit committee of the Board
Audit committee of the Board performed its functions of supervision and examination to maintain the
independence of audition in auditing for year of 2020 according to the requirements of related laws and
regulations such as Company Law and Rules Governing the Listing of Stocks on Shenzhen Stock Exchange by
abiding of Articles of Incorporation, Implementing Regulations of Audit Committee of Board of the Directors,
and Annual Work Rules of Audit Committee, the details are as follows:
1. On 20 January 2020, the ―Financial Statement Report for year of 2019 and Arrangement of Internal Control
Auditing‖ and ―Un-audited Financial Accounting Statement for year of 2019‖ were deliberated and approved in
14th session of 9th audit committee of the Board, the un-audited financial statement presented an objectified
financial status and operation results for year of 2019 basically.
2. On 9 March 2020, the audit committee held the 15th session of the 9th audit committee after the Shine Wing
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Certified Public Account (LLP) issued preliminary audit opinion. Reviewed the auditing draft of financial report
for year of 2019, proposed specific opinions; members of audit committee communicated with certified public
accountant who was responsible for audition of the company, the certified public accountant who was be
responsible for annual audition of the company reported related matters and adjusted matters during the audition
to the audit committee, and matters of the company needs to be adjusted have been adjusted according to
adjustment opinions of the certified public accountant who was responsible for annual audition. The audit
committee read the first draft of audited financial accounting statements for 2019 of the company according to
audition condition known from certified public accountant who was responsible for annual audition and
production operation condition and financial performances reported by management level of the company,
considered that the annual financing accounting statements for 2019 audited preliminarily by the Shine Wing
Certified Public Account can truly, correctly and completely reflect the operation condition of the company, and
confirmed the preliminary audit opinions of financing accounting statements of the company issued by the Shine
Wing Certified Public Account.
3. On 16 March 2020, the 16th session of the 9th audit committee of the Board deliberated and approved the
followed five proposals as‖ Audited Financial Statement Report of 2019‖, ―Auditing Report of Internal Control
for year of 2019‖, Summary Report on Auditing Works for year of 2019 from Shine Wing Certified Public
Account‖, ―Auditing Institution for Financial Report of 2020 and Internal Control Auditing Re-engagement and
Remuneration Paid‖, and ―Opening Business of Forward Exchange‖, and agreed to submit these auditing
institutions to board of the directors of the Company for deliberation.
4. On 15 April 2020, the ―Financial Statement of 1Q of 2020‖ was deliberated and approved in 17th session of 9th
audit committee of the Board, the financial statement present a real, accurate and completed financial status and
operation results of the Company for 1Q of 2020. The company's financial statements for the first quarter of 2020
have not been audited. The financial statements of 1Q of 2020 agree to submit for approval in the Board.
5. On 4 August 2020, the ―Financial Statement of Semi-annual 2020‖ was deliberated and approved in 18th session
of 9th audit committee of the Board, the financial statement present a real, accurate and completed financial status
and operation results of the Company for semi-annual of 2020. The company's semi-annual financial report for
2020 was not audited. The financial statements of semi-annual 2020 agree to submit for approval in the Board.
6. On 16 October 2020, the ―Financial Statement of 3Q 2020‖ was deliberated and approved in 1st session of 10th
audit committee of the Board, the financial statement present a real, accurate and completed financial status and
operation results of the Company for 3Q of 2020. The company's financial statements for the third quarter of 2020
have not been audited. The financial statement of 3Q 2020 agree to submit for approval in the Board.
7. On 28 January 2020, the ―Financial Statement Report for year of 2020 and Arrangement of Internal Control
Auditing‖ and ―Un-audited Financial Accounting Statement for year of 2020‖ were deliberated and approved in
2nd session of 10th audit committee of the Board, the un-audited financial statement presented an objectified
financial status and operation results for year of 2020 basically.
8. On 9 March 2021, the audit committee held the 3rd session of the 10th audit committee after the Shine Wing
Certified Public Account (LLP) issued preliminary audit opinion. Reviewed the auditing draft of financial report
for year of 2020, proposed specific opinions; members of audit committee communicated with certified public
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accountant who was responsible for audition of the company, the certified public accountant who was be
responsible for annual audition of the company reported related matters and adjusted matters during the audition
to the audit committee, and matters of the company needs to be adjusted have been adjusted according to
adjustment opinions of the certified public accountant who was responsible for annual audition.
The audit committee read the first draft of audited financial accounting statements for 2020 of the company
according to audition condition known from certified public accountant who was responsible for annual audition
and production operation condition and financial performances reported by management level of the company,
considered that the annual financing accounting statements for 2020 audited preliminarily by the Shine Wing
Certified Public Account can truly, correctly and completely reflect the operation condition of the company, and
confirmed the preliminary audit opinions of financing accounting statements of the company issued by the Shine
Wing Certified Public Account.
9. On 19 March 2021, the 4th session of the 10th audit committee of the Board deliberated and approved the
followed five proposals as‖ Audited Financial Statement Report of 2020‖, ―Auditing Report of Internal Control
for year of 2020‖, Summary Report on Auditing Works for year of 2020 from Shine Wing Certified Public
Account‖, ―Auditing Institution for Financial Report of 2021 and Internal Control Auditing Re-engagement and
Remuneration Paid‖, and ―Opening Business of Forward Exchange‖, and agreed to submit these auditing
institutions to board of the directors of the Company for deliberation.
(iii) Responsibility performance for nominations committee of the Board
The nominations committee under the board of directors practically performed their duties on the basis of
requirements of laws and regulations of ―Company Law‖ and ―Rules Governing the Listing of Stocks on Shenzhen
Stock Exchange‖, and in strict accordance with ―Articles of Association‖, ―Implementation Rules of Nominations
Committee of the Board‖, in the reporting period, the nominations committee reviewed and made
recommendations to the engaged director and senior management that needed to be submitted to the board for
consideration and nomination.
1. In view of the fact that the term of the company‘s ninth board of directors has expired on September 12, 2020,
in accordance with the ―Company Law‖, ―Articles of Association‖, ―Rules of Procedures of the Board of
Directors‖, ―Implementation Rules of the Nomination Committee of the Board of Directors‖ and other relevant
regulations, after considering the corporate governance structure of the company‘s board of directors, and
combined with the actual situation of the company, the tenth board of directors of the company is composed of 9
directors, including 6 non-independent directors and 3 independent directors.
On 16 September 2020, the nomination committee held its 8th meeting of the nomination committee of the 9th
board of directors, deliberated and approved two proposal of qualification auditing for the non-independent
director elected as 10th BOD and qualification auditing for the chairman elected as 10th BOD.
(1) After reviewed by the nominations committee, it is deemed that the educational background, service
experience, professional ability and professional quality of the candidates for the non-independent director of the
company‘s tenth board of directors meet the requirements for the position to be held, and have not been punished
by the China Securities Regulatory Commission or other relevant departments or received any disciplinary
sanctions of the stock exchange in the past five years, there are no cases of suspected crimes being filed for
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investigation by judicial organs or suspected of violations of laws and regulations by the China Securities
Regulatory Commission; they are neither the person subject to enforcement nor the responsibility subject of
untrustworthiness, and there is no circumstances that the director candidates are not allowed to be nominated as
directors, their qualifications meet the requirements of relevant laws, administrative regulations, departmental
rules, regulatory documents, "Stock Listing Rules" and other relevant provisions of the stock exchange. The
above-mentioned director candidates have strong professional knowledge and rich work experience in related
industries, which will help further improve the corporate governance structure of the company and benefit the
company's long-term business development. It is recommended that the board of directors nominate Mr. Wu
Dinggang, Mr. Kou Huameng, Mr. Yong Fengshan, Mr. Zhong Ming, Mr. Hu Zhaogui, and Mr. Chen Ye as
candidates for non-independent directors of the company's tenth board of directors.
(2)After reviewed by the nominations committee, it is deemed that the educational background, service experience,
professional ability and professional quality of the candidates for the independent director of the company‘s tenth
board of directors meet the requirements for the position to be held, and have not been punished by the China
Securities Regulatory Commission or other relevant departments or received any disciplinary sanctions, there are
no cases of suspected crimes being filed for investigation by judicial organs or suspected of violations of laws and
regulations by the China Securities Regulatory Commission; they are neither the person subject to enforcement
nor the responsibility subject of untrustworthiness, and there is no circumstances that the director candidates are
not allowed to be nominated as directors, their qualifications meet the requirements of relevant laws,
administrative regulations, departmental rules, regulatory documents, "Stock Listing Rules" and other relevant
provisions of the stock exchange. Meanwhile, each candidate for independent director has the qualifications and
independence to hold office as stipulated in the ―Measures for Filing Independent Directors of Shenzhen Stock
Exchange Measures‖, and candidates have strong professional knowledge and rich work experience in related
industries, which will help further improve the corporate governance structure of the company and benefit the
company's long-term business development. It is recommended that the board of directors nominate Mr. Hong
Yuanjia, Ms. Mou Wen and Mr. Zhao Gang as candidates for independent directors of the company's tenth board
of directors.
2. On October 12, 2020, the nomination committee held the first meeting of the nomination committee of the tenth
board of directors. The meeting reviewed and approved the Proposal on the Qualification Examination of the
Company‘s Board of Directors for the Senior Managers Planned to Be Appointed by the Company‖.
According to the company‘s actual business development needs and taking into account the continuity of the
company‘s management, nominated by the company‘s chairman and reviewed by the nomination committee, the
qualifications of the company‘s senior executives planned to be appointed by the company‘s board of directors
conform to the "Company Law" and "Articles of Association" and the relevant regulations of the China Securities
Regulatory Commission, there is no situation that has been determined by the China Securities Regulatory
Commission as a market ban or the ban has not been lifted. The educational background, professional experience,
professional competence and professional quality of the senior executives to be appointed this time meet the job
requirements of proposed position. It is recommended that the tenth session of the company‘s board of directors
continue the appointments of Mr. Kou Huameng as the company‘s vice president (acting on behalf of the
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president), Mr. Liu Hongwei as the company‘s executive vice president, Mr. Zhong Ming, Mr. Hu Zhaogui, and
Mr. Huang Danian as the company‘s vice presidents, and Mr. Pang Haitao as the company‘s chief financial officer
(head of finance), continue to appoint Ms. Li Xia as secretary of the company's board of directors. The
qualifications of Ms. Li Xia have been filed and reviewed by the Shenzhen Stock Exchange and there is no
objection.
3. On 9 December, 2020, the nomination committee held the second meeting of the nomination committee of the
tenth board of directors. The meeting reviewed and approved the Proposal on the Qualification Examination of the
Company‘s Board of Directors for the President Planned to Be Appointed by the Company‖.
According to the company‘s business and management needs, nominated by the company‘s chairman and
reviewed by the nomination committee, the company‘s senior executives planned to be appointed by the
company‘s board of directors have not been punished by the China Securities Regulatory Commission and other
relevant departments nor taken disciplinary actions by the stock exchange. There is no case of being filed for
investigation by judicial organs for suspected crimes or being filed for investigation by the China Securities
Regulatory Commission for suspected violations of laws and regulations. They are neither the person subject to
enforcement nor the responsibility subject of untrustworthiness, and there is no circumstances that the candidates
are not allowed to be nominated as senior executives. The educational background, professional experience,
professional competence and professional quality of the senior executives to be appointed this time meet the job
requirements of proposed position. It was agreed to nominate Mr. Zhong Ming as the president of the company
and submit to the board of directors for deliberation.
4. On 19 March 2021, the nomination committee held its 3rd meeting of the nomination committee of the 10th
board of directors, deliberated and approved the Proposal on review by the BOD of the qualifications for
appointment of the proposed Vice President of the Company.
According to the company‘s business and management needs, nominated by the company‘s president and
reviewed by the nomination committee, the company‘s senior executives planned to be appointed by the
company‘s board of directors have not been punished by the China Securities Regulatory Commission and other
relevant departments nor taken disciplinary actions by the stock exchange. There is no case of being filed for
investigation by judicial organs for suspected crimes or being filed for investigation by the China Securities
Regulatory Commission for suspected violations of laws and regulations. They are neither the person subject to
enforcement nor the responsibility subject of untrustworthiness, and there is no circumstances that the candidates
are not allowed to be nominated as senior executives. The educational background, professional experience,
professional competence and professional quality of the senior executives to be appointed this time meet the job
requirements of proposed position. It was agreed to nominate Mr. Tang Youdao as the deputy president of the
company and submit to the board of directors for deliberation.
(iv) Responsibility performance for remuneration and appraisal committee of the board
In line with relevant laws and regulation of Company Law and ―Rules Governing the Listing of Stocks on
Shenzhen Stock Exchange‖, remuneration and appraisal committee of the Board, strictly follow rules of ―Article
of Association‖ and ―Implementation Rules of remuneration and appraisal committee of the Board‖, in the
reporting period, the committee proposed suggestions on the performance evaluation standards and incentive &
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restraint mechanism for directors, supervisors and senior executives, and review the appraisal and remuneration of
directors, supervisors and senior executives, accrual and distribution for performance incentive fund included.
More details are as:
1. On 16 March 2020, the 3rd meeting of the Remuneration and Appraisal Committee of the 9th Board of Directors
was convened. The meeting reviewed and approved the "Appraisal and Payment of Remuneration of Directors
and Senior Executives in Current Year 2019", and carried out follow opinions:
The committee assessed and reviewed the remunerations and payment status of the Company‘s directors and
senior executives in 2019, and considered that the allowances received by the independent directors of the
Company should be paid at the allowance rate approved by the general meeting of shareholders; the
remunerations received by the Company‘s senior executives from the Company should be strictly based on the
Company‘s remuneration and assessment system, the remuneration information disclosed by the Company was
truthful, accurate, and complete and conformed to requirements of ―Content and Format Norm for Information
Disclosure of Companies Publicly Issuing Securities No. 2 - Content and Format of Annual Report (Revised in
2017)‖ of China Securities Regulatory Commission
The Board of Directors of the Company reviewed and passed the remuneration assessment and payment matters
of the directors and senior executives in the Company‘s 2019 annual report based on the remuneration assessment
status of senior executives of the Company and the opinions of the remuneration and appraisal committee.
2. On September 16, 2020, the fourth meeting of the remuneration and appraisal committee of the ninth board of
directors was held. The meeting reviewed and approved the Proposal on Determining the Allowance Standards for
Independent Directors of the 10th Board of Directors of the Company, and issued the following review opinions:
According to the relevant regulations and requirements of "Guiding Opinions on Establishing an Independent
Director System in Listed Companies" of the China Securities Regulatory Commission and the "Articles of
Association", taking into account the actual situation of the company and referring to the independent director
allowance standards of listed companies in the same industry, it was agreed that the allowance standards for the
independent directors of the company's tenth board of directors is intended to be 100,000 yuan per person per year
(after tax). At the same time, it was agreed to submit this proposal to the company's board of directors for
deliberation.
3. On 19 March 2021, the remuneration and appraisal committee of the 10th Session of Board of Directors
convened the 1st meeting which reviewed and approved the ―Remuneration Assessment and Payment of Directors
and Senior Executives of the Company in 2020‖ and issued the following review opinions:
The committee assessed and reviewed the remunerations and payment status of the Company‘s directors and
senior executives in 2020, and considered that the allowances received by the independent directors of the
Company should be paid at the allowance rate approved by the general meeting of shareholders; the
remunerations received by the Company‘s senior executives from the Company should be strictly based on the
Company‘s remuneration and assessment system, the remuneration information disclosed by the Company was
truthful, accurate, and complete and conformed to requirements of ―Content and Format Norm for Information
Disclosure of Companies Publicly Issuing Securities No. 2 - Content and Format of Annual Report (Revised in
2017)‖ of China Securities Regulatory Commission
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CHANGHONG MEILING CO.,LTD. Annual Report 2020
The Board of Directors of the Company reviewed and passed the remuneration assessment and payment matters
of the directors and senior executives in the Company‘s 2020 annual report based on the remuneration assessment
status of senior executives of the Company and the opinions of the remuneration and appraisal committee.
VII. Works from Supervisory Committee
Whether the Company has risks or not in reporting period that found in supervisory activity from supervisory
committee
□Yes √ No
Supervisory committee has no objection about supervision events in reporting period
VIII. Appraisal and incentive to senior management
During the reporting period, The Company established 2020 annual compensation and performance management
plan for the senior management of the Company in accordance with the main scope, responsibilities, importance
of their management positions and the remuneration level of other relevant enterprises and positions; the plan
included but not limited to key performance indicator (KPI), performance appraisal standards, procedures and
major programs and systems of main appraisal system, reward and punishment; investigated the execution of duty
of the senior management and implemented annual performance appraisal to them. After reviewed by the
committee, submit to the Board for approval.
At the end of Current Year, combined with the senior management‘s working reports and self-evaluation of 2020,
and according to the performance evaluation criteria and procedures, the Compensation and Appraisal Committee
has carried out performance appraisal to the senior management‘s key performance indication (KPI) in 2020 and
other related indicators; proposed the remuneration amount and performance assessment methods for senior
management according to the job performance evaluation results and remuneration distribution policy, and
reported to the Board of Directors for approval.
IX. Internal Control
(i) Details of major defects in IC appraisal report that found in reporting period
□Yes √ No
(ii) Appraisal Report of Internal Control
Date of evaluation report of internal control disclosed (Full-text) March 31, 2021
Index of evaluation report of internal control disclosed (Full-text) Juchao Website (www.cninfo.com.cn)
The ratio of the total assets of units included in the scope of evaluation
99.83%
accounting for the total assets on the company's consolidated financial statements
The ratio of the operating income of units included in the scope of evaluation
accounting for the operating income on the company's consolidated financial 100%
statements
Defects Evaluation Standards
Category Financial Reports Non-financial Reports
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CHANGHONG MEILING CO.,LTD. Annual Report 2020
1. Material defect: severally or jointly with other defects, will lead to material
wrong reporting in financial reports being not able to prevented or found or
rectified in a timely manner. Occurrence of the followings will be deemed as
material defect:
1. inefficiency of environment control;
2. fraud of directors, supervisors and senior management;
3. The external auditor finds material wrong reporting in current financial
statement, while the Company has not found such reporting during its operation;
4. The material defect identified and reported to the management fails to be
rectified in a reasonable time period; Occurrence of the followings shall be deemed
5. The audit committee and audit department of the Company exercise invalid as material defect, otherwise as major defect
supervision upon internal control; or general defect subject to the level of
6. Other defects which may affect financial statement users to make correct influence.
judgment. 1. breach of national laws, regulations or
2. Major defect: severally or jointly with other defects, will lead to wrong regulatory documents;
reporting in financial reports being not able to prevented or found or rectified in a 2. procedure for making significant decisions
Qualitative timely manner which still needs attention from the management though it doesn‘t is not scientific;
criteria reach or exceed material defect as described above. Occurrence of the followings 3. absence of system may lead to invalid
will be deemed as major defect: system;
4. Material or major defects are not likely to
(1) Financial losses caused by guaranteeing and investing in securities and financial
rectify;
derivatives transactions and disposing property right and stock right without
5. Large negative effects on the company and
authorization;
disclosed in the form of announcement;
(2) The company's financial staff or other relevant business personnel have unclear
6. Other issues that materially affect the
powers and responsibilities or job chaos, or are suspected of being involved in
Company.
economic or job-related crimes and have been transferred to the judiciary;
(3) Punishment or severely negative impacts on the company's image due to the
bias implementation of the policy or accounting errors, etc.;
(4) Financial losses caused by destroying, concealing, or altering the important
original evidences at will, such as invoices and checks, etc.
(5) Cash income is not entered into the account book, or public funds are deposited
in private account or "private coffer" is established by breaking the rules.
3. General defect: other internal control related defects that do not constitute
material defects or major defect.
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CHANGHONG MEILING CO.,LTD. Annual Report 2020
1. Proportion of direct property loss in
total operating income: Material defect:
wrong reporting ≧0.1%; Major defect: 0.05%
1. Proportion of potential wrong reporting in total operating income: Material ≤ wrong reporting＜0.1%; General defect:
defect: wrong reporting ≧0.5%; Major defect: 0.1% ≤ wrong reporting＜0.5%;
wrong reporting＜0.05%.
General defect: wrong reporting＜0.1%. 2. Proportion of direct property loss in
total profit: Material defect: wrong reporting
2. Proportion of potential wrong reporting in total profit: Material defect:
≧10%; Major defect: 5% ≤ wrong reporting
wrong reporting ≧10%; Major defect: 5% ≤ wrong reporting＜10%; General
＜10%; General defect: wrong reporting＜
defect: wrong reporting＜5%. 5%.
Quantitative
3. Proportion of direct property loss in
standard 3. Proportion of potential wrong reporting in total assets: Material defect:
total assets: Material defect: wrong reporting
wrong reporting ≧0.5%; Major defect: 0.1% ≤ wrong reporting＜0.5%; General ≧0.2%; Major defect: 0.1% ≤ wrong
reporting ＜ 0.2%; General defect: wrong
defect: wrong reporting＜0.1%.
4. Proportion of potential wrong reporting in total owners’ equity: Material reporting＜0.1%.
defect: wrong reporting ≧0.5%; Major defect: 0.1% ≤ wrong reporting＜0.5%; 4. Proportion of direct property loss in
total owners’ equity: Material defect: wrong
General defect: wrong reporting＜0.1%. reporting ≧0.2%; Major defect: 0.1% ≤
wrong reporting＜0.2%; General defect:
wrong reporting＜0.1%.
Amount of significant defects in financial reports 0
Amount of significant defects in non-financial reports 0
Amount of important defects in financial reports 0
Amount of important defects in non-financial reports 0
X. Auditing report of internal control
√ Applicable □ Not applicable
Deliberation section of auditing report of IC
We consider that: in all major aspects, Changhong Meiling Co., Ltd. has efficiency in financial report of internal control dated 31
December 2020 according to Basic Standards of Internal Control for Enterprise and relevant regulations.
Disclosure details of audit report of internal control Disclosed
Disclosure date of audit report of internal control (full-text) March 31, 2021
Index of audit report of internal control (full-text) Juchao Website (www.cninfo.com.cn)
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CHANGHONG MEILING CO.,LTD. Annual Report 2020
Opinion type of auditing report of IC Standard unqualified
whether the non-financial report had major defects No
Whether CPA carries out qualified opinion for audit report of internal control or not
□Yes √ No
Whether the opinions are consistent in audit report of internal control carrying out by CPA and the self-evaluation
report of the Board or not
√ Yes □ No
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CHANGHONG MEILING CO.,LTD. Annual Report 2020
Section XI. Corporate Bond
Whether the Company has a corporation bonds that issuance publicly and listed on stock exchange and without
due on the date when annual report approved for released or fail to cash in full on due
□Yes √No
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CHANGHONG MEILING CO.,LTD. Annual Report 2020
Section XII. Financial Report
I. Audit report
Type of audit opinion Standard unqualified opinion
Date for signing the report 29 March 2021
Name of audit institute Shine Wing Certified Public Accountants (LLP)
Serial of Auditing Report XYZH/2021CDAA70082
Name of CPA Li Xifu, Wang Xiaodong
Auditor’s Report
XYZH/2021CDAA70082
To Shareholders of Changhong Meiling Co., Ltd.:
I. Auditor’s opinion
We, as the auditors, audited the financial statements of Changhong Meiling Co., Ltd. (the ―Company‖), which
included the consolidated balance sheet as of 31 December 2020, the consolidated statement of income, the
consolidated statement of cash flow and the consolidated statement of changes in equity of the Company for
Current Year ended 31 December 2020, together with the relevant notes thereto.
We are the view that the attached financial statements are prepared in accordance with the Business Accounting
Standards in all material aspects, which reflect fairly the consolidated financial position of the Company as of 31
December 2020 and the operating results and cash flow of the Company for Current Year of 2020.
II. Basis for audit opinions
We conducted this audit under the requirements of the Auditing Standards of the Certified Public Accountant of
the PRC. The section headed ―Certified Public Accountant‘s responsibility for audit of financial statement‖ in the
audit report has further clarified our responsibilities under these standards. Pursuant to the code of professional
conduct as certified public accountant in the PRC, we are independent of the Company and have performed other
responsibility as required by our professional ethics. We believe that the audit evidence obtained by us is
sufficient and adequate, which provides foundation for us to issue audit opinion.
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CHANGHONG MEILING CO.,LTD. Annual Report 2020
III. Key audit issues
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of
the financial statements of the current period. These matters were addressed in the context of our audit of the
financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on
these matters. The key audit matter we identified is as follows:
1.Recognition of revenue
Please refer to note (iv) 26 and note (vi) 40.
Key audit matters Audit address
Main auditing procedures for revenue recognition are including:
1) know and test the cycle internal control of sales and collection, to assess
the design and effectiveness of the internal control;
2) understand the business substance, inspect significant sales contract and
the corresponding sales invoice, on a random basis, receipt of notes,
Sales revenue of the Company was mainly delivery information confirmed through systems, verify that whether
sourced from sales of refrigerator, air revenue was recognized upon satisfaction of required conditions and
conditioner, small household appliances and whether the revenue recognition was made in right timing, and verify that
kitchen and washing machines to both domestic whether profit was adjusted through aggressive sales policy;
and overseas customers. As indicated in note
3) Carry out supervision and other procedures to the important inventory at
(vi) 40 of the financial statement - Operating
end of the period, well-known the progress of the contracts and follow up
income and cost, the operating income was
RMB 15,388,050,229.67 in 2020. Since the the abnormal situations found in inspection;
truthfulness and completeness of revenue
4) Conduct inquiry through issue of letters, and carry out additional audit
recognition has material impact on operating
procedures for the items for which reply was abnormal;
results, we attached great importance to
recognition of sales revenue. 5) review collection of trade receivables, confirm the conformity between
the entities owing receivables and name of customers to verify whether
there was collection of receivables from third parties, to review the
truthfulness of the collection and revenue;
6) review collection of receivables in subsequent period;
7) make cut-off test and analysis re-review on revenue.
2.Capitalization of development expense
Please refer to note (iv) 20 and note (vi) 16
Key audit matters Audit address
The development expense occurred for research 1) Understand the key control of capitalization of development
and development of non-patent technology in expenditures, implement internal control audit procedures, understand the
2020 was RMB 134,284,644.90, which was scope and accounting methods of development expenditures, understand and
capitalized and accounted for as development make research and development on related control systems and processes,
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CHANGHONG MEILING CO.,LTD. Annual Report 2020
expense in the consolidated financial statement. and test the effectiveness of relevant internal control design and operation;
Development expense could only be capitalized
upon satisfaction of all the capitalization
2) Implementation: compare the developed projects in intangible assets
conditions set out in note (iv) 20 to the
financial statement. Since to confirm whether with machinery models for external sales, and re-verify the truthfulness of
all the capitalization conditions are met requires capitalization of completely developed projects
the management to make significant judgment
3) Dual purpose testing: inspect the project reports and inspection and
and estimate, we deem this matter important in
acceptance reports formed during the research and development and
the context of our audit.
commercialization of developed products, and judge the sufficiency of basis
for accounting of development expense
IV. Other information
The management of Changhong Meiling Co., Ltd. (the ―Management‖) is responsible for other information which
includes the information covered in the Company‘s 2020 annual report excluding the financial statement and our
audit report.
The audit opinion issued by us for the financial statement has not covered other information, for which we do not
issue any form of assurance opinions.
Considering our audit on financial statements, we are liable to read other information, during which, we shall
consider whether other information differs materially from the financial statements or that we understand during
our audit, or whether there is any material misstatement.
Based on the works executed by us, we should report the fact if we find any material misstatement in other
information. In t his regards, we have nothing to report.
V. Responsibilities of management and those charged with governance for the financial statements
The management is responsible for the preparation of the financial statements in accordance with the Accounting
Standards for Enterprise to secure a fair presentation, and for the design, establishment and maintenance of the
internal control necessary to enable the preparation of financial statements that are free from material
misstatement, whether due to fraud or error.
In preparing the financial statements, the management is responsible for assessing the Company‘s ability to
continue as a going concern, disclosing matters related to going concern and using the going concern assumption
unless the management either intends to liquidate the Company or to cease operations, or has no realistic
alternative but to do so.
Those charged with governance are responsible for overseeing the Company‘s financial reporting process.
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CHANGHONG MEILING CO.,LTD. Annual Report 2020
VI. Responsibilities of the auditor for the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an audit report that includes our audit opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance
with the CAS will always detect a material misstatement when it exists. Misstatements can arise from fraud or
error and are considered material if, individually or in the aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the basis of the financial statements.
As part of an audit in accordance with the CAS, we exercise professional judgment and maintain professional
skepticism throughout the audit. We also:
(1) identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error,
design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and
appropriate to provide a basis for audit opinion. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
(2) Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances.
(3) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and
related disclosures made by the management.
(4) Conclude on the appropriateness of the management‘s use of the going concern assumption and, based on the
audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast
significant doubt on the Company‘s ability to continue as a going concern. If we conclude that a material
uncertainty exists, we are required by the CAS to draw users‘ attention in audit report to the related disclosures in
the financial statements or, if such disclosures are inadequate, to modify audit opinion. Our conclusions are based
on the information obtained up to the date of audit report. However, future events or conditions may cause the
Company to cease to continue as a going concern.
(5) Evaluate the overall presentation, structure and content of the financial statements, and whether the financial
statements represent the underlying transactions and events in a manner that achieves fair presentation.
(6) Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business
activities within the Company to express audit opinion on the financial statements. We are responsible for the
direction, supervision and performance of the group audit. We remain solely responsible for audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and
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CHANGHONG MEILING CO.,LTD. Annual Report 2020
timing of the audit and significant audit findings, including any significant deficiencies in internal control that we
identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical
requirements regarding independence, and communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, related safeguard measures.
From the matters communicated with those charged with governance, we determine those matters that were of
most significance in the audit of the financial statements of the current period and are therefore the key audit
matters. We describe these matters in the auditor‘s report unless law or regulation precludes public disclosure
about the matter or when, in extremely rare circumstances, we determine that a matter should not be
communicated in the auditor‘s report because of the adverse consequences of doing so would reasonably be
expected to outweigh the public interest benefits of such communication.
Shine Wing Certified Public Accountants (LLP) Chinese CPA: Li Xifu (engagement partner)
Chinese CPA: Wang Xiaodong
Beijing China 29 March 2021
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CHANGHONG MEILING CO.,LTD. Annual Report 2020
II. Financial statements
Units in Notes of Financial Statements is RMB
1. Consolidated Balance Sheet
Prepared by CHANGHONG MEILING CO., LTD. December 31, 2020
In RMB
Item December 31, 2020 December 31, 2019
Current assets:
Monetary funds 6,594,786,789.98 5,499,601,030.64
Settlement provisions
Capital lent
Tradable financial assets 47,242,339.07 7,730,268.92
Derivative financial assets
Note receivable 340,421,386.71 1,865,165,499.50
Account receivable 1,130,275,780.66 1,387,961,981.66
Receivable financing 1,632,388,702.83
Accounts paid in advance 30,105,373.40 25,270,406.37
Insurance receivable
Reinsurance receivables
Contract reserve of reinsurance receivable
Other account receivable 145,705,978.26 97,241,894.80
Including: Interest receivable 9,510,208.63
Dividend receivable 661,434.48
Buying back the sale of financial assets
Inventories 1,715,354,951.43 1,460,910,189.06
Contractual assets
Assets held for sale
Non-current asset due within one year
Other current assets 198,353,464.98 63,604,031.96
Total current assets 11,834,634,767.32 10,407,485,302.91
Non-current assets:
Loans and payments on behalf
Debt investment
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CHANGHONG MEILING CO.,LTD. Annual Report 2020
Other debt investment
Long-term account receivable
Long-term equity investment 76,982,822.38 88,556,511.70
Investment in other equity instrument
Other non-current financial assets 548,148,931.34 45,000,000.00
Investment real estate 53,888,462.00 96,343,760.13
Fixed assets 2,391,859,440.31 2,180,572,946.87
Construction in progress 60,775,088.96 252,494,792.31
Productive biological asset
Oil and gas asset
Right-of-use assets
Intangible assets 936,851,520.65 933,248,463.84
Expense on Research and Development 73,028,441.56 101,078,659.57
Goodwill
Long-term expenses to be apportioned
Deferred income tax asset 127,185,979.94 97,453,178.14
Other non-current asset
Total non-current asset 4,268,720,687.14 3,794,748,312.56
Total assets 16,103,355,454.46 14,202,233,615.47
Current liabilities:
Short-term loans 1,336,209,050.55 1,103,991,045.96
Loan from central bank
Capital borrowed
Trading financial liability 4,584,076.51 1,081,534.93
Derivative financial liability
Note payable 4,439,607,982.34 3,490,271,482.40
Account payable 2,851,999,684.30 2,343,116,374.58
Accounts received in advance 425,149,194.97
Contractual liability 522,550,891.28
Selling financial asset of repurchase
Absorbing deposit and interbank deposit
Security trading of agency
Security sales of agency
Wage payable 290,321,776.05 196,507,174.68
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CHANGHONG MEILING CO.,LTD. Annual Report 2020
Taxes payable 89,682,433.90 68,558,391.66
Other account payable 724,701,686.72 689,477,603.21
Including: Interest payable 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 one year 407,825,150.74 1,708,193.90
Other current liabilities 22,923,698.73
Total current liabilities 10,690,406,431.12 8,319,860,996.29
Non-current liabilities:
Insurance contract reserve
Long-term loans 188,231,439.30 401,280,000.00
Bonds payable
Including: Preferred stock
Perpetual capital securities
Lease liability
Long-term account payable 1,705,323.91 3,016,921.44
Long-term wages payable 10,571,526.69 13,774,110.61
Accrual liability 62,392,735.07 166,099,143.97
Deferred income 177,377,450.12 179,970,971.92
Deferred income tax liabilities 10,575,582.33 6,256,759.14
Other non-current liabilities
Total non-current liabilities 450,854,057.42 770,397,907.08
Total liabilities 11,141,260,488.54 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 2,683,837,229.12 2,684,366,619.10
Less: Inventory shares 9,929,336.18
Other comprehensive income -21,451,084.17 -18,931,430.36
Reasonable reserve
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CHANGHONG MEILING CO.,LTD. Annual Report 2020
Surplus public reserve 416,364,790.43 410,786,860.20
Provision of general risk
Retained profit 740,754,202.23 884,127,743.42
Total owner‘ s equity attributable to parent company 4,854,173,682.43 5,004,947,673.36
Minority interests 107,921,283.49 107,027,038.74
Total owner‘ s equity 4,962,094,965.92 5,111,974,712.10
Total liabilities and owner‘ s equity 16,103,355,454.46 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 December 31, 2020 December 31, 2019
Current assets:
Monetary funds 4,605,962,184.11 4,040,632,437.18
Tradable financial assets 37,589,391.07 5,967,556.00
Derivative financial assets
Note receivable 286,990,200.00 1,722,707,248.74
Account receivable 1,019,299,017.40 1,158,563,389.33
Receivable financing 1,561,429,139.80
Accounts paid in advance 39,571,728.09 34,374,932.07
Other account receivable 49,093,918.57 41,964,639.42
Including: Interest receivable 7,880,186.85
Dividend receivable 661,434.48
Inventories 578,905,855.30 339,728,296.66
Contractual assets
Assets held for sale
Non-current assets maturing within one year
Other current assets 142,573,164.77 11,930,690.86
Total current assets 8,321,414,599.11 7,355,869,190.26
Non-current assets:
Debt investment
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CHANGHONG MEILING CO.,LTD. Annual Report 2020
Other debt investment
Long-term receivables
Long-term equity investments 1,834,115,835.95 1,698,744,114.99
Investment in other equity instrument
Other non-current financial assets 548,148,931.34 45,000,000.00
Investment real estate 3,961,590.38 7,314,721.80
Fixed assets 1,229,803,474.56 1,138,092,635.67
Construction in progress 47,570,309.13 106,575,581.28
Productive biological assets
Oil and natural gas assets
Right-of-use assets
Intangible assets 479,923,618.32 483,887,751.05
Research and development costs 42,913,363.51 56,295,271.74
Goodwill
Long-term deferred expenses
Deferred income tax assets 103,462,284.33 77,849,317.77
Other non-current assets
Total non-current assets 4,289,899,407.52 3,613,759,394.30
Total assets 12,611,314,006.63 10,969,628,584.56
Current liabilities
Short-term borrowings 1,234,926,592.05 1,009,757,944.82
Trading financial liability 2,512,269.00 1,016,052.00
Derivative financial liability
Notes payable 2,510,288,511.69 1,936,867,907.42
Account payable 1,918,960,127.71 1,497,704,307.48
Accounts received in advance 147,365,864.56
Contractual liability 281,974,752.24
Wage payable 130,314,834.51 39,633,867.87
Taxes payable 19,582,700.30 20,427,731.13
Other accounts payable 624,090,798.72 520,559,494.30
Including: Interest payable 13,175,235.76
Dividend payable 3,866,628.25 3,579,491.94
Liability held for sale
Non-current liabilities due within one year 407,141,888.08
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CHANGHONG MEILING CO.,LTD. Annual Report 2020
Other current liabilities 6,432,113.43
Total current liabilities 7,136,224,587.73 5,173,333,169.58
Non-current liabilities:
Long-term loans 188,231,439.30 401,280,000.00
Bonds payable
Including: preferred stock
Perpetual capital securities
Lease liability
Long-term account payable
Long term employee compensation payable 10,571,526.69 13,774,110.61
Accrued liabilities 55,035,910.31 158,742,319.21
Deferred income 67,315,337.57 67,664,815.53
Deferred income tax liabilities 6,102,908.01 742,725.60
Other non-current liabilities
Total non-current liabilities 327,257,121.88 642,203,970.95
Total liabilities 7,463,481,709.61 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 2,753,137,787.99 2,753,017,007.10
Less: Inventory shares 9,929,336.18
Other comprehensive income
Special reserve
Surplus reserve 416,146,624.75 410,568,694.52
Retained profit 943,879,339.46 945,907,861.41
Total owner‘s equity 5,147,832,297.02 5,154,091,444.03
Total liabilities and owner‘s equity 12,611,314,006.63 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
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3. Consolidated Profit Statement
In RMB
Item 2020 2019
I. Total operating income 15,388,050,229.67 16,553,252,894.93
Including: Operating income 15,388,050,229.67 16,553,252,894.93
Interest income
Insurance gained
Commission charge and commission income
II. Total operating cost 15,602,345,607.20 16,579,810,406.62
Including: Operating cost 12,850,871,672.57 13,455,692,376.85
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 150,315,512.44 153,065,726.91
Sales expense 1,945,803,799.56 2,320,362,519.95
Administrative expense 280,245,684.56 330,687,143.82
R&D expense 380,638,922.91 334,218,689.69
Financial expense -5,529,984.84 -14,216,050.60
Including: Interest expenses 88,262,152.17 93,523,492.74
Interest income 139,603,245.84 133,568,862.29
Add: other income 104,122,180.27 110,281,102.69
Investment income (Loss is listed with ―-‖) 78,127,214.62 -32,695,507.49
Including: Investment income on affiliated company
-3,500,527.61 -8,049,228.81
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 value (Loss is listed with
41,614,800.19 52,993,630.16
―-‖)
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CHANGHONG MEILING CO.,LTD. Annual Report 2020
Loss of credit impairment (Loss is listed with ―-‖) -17,058,488.00 4,633,296.89
Losses of devaluation of asset (Loss is listed with ―-‖) -78,711,657.91 -30,409,004.57
Income from assets disposal (Loss is listed with ―-‖) -500,976.21 -9,537,945.52
III. Operating profit (Loss is listed with ―-‖) -86,702,304.57 68,708,060.47
Add: Non-operating income 8,468,605.41 6,479,922.98
Less: Non-operating expense 7,644,641.64 5,409,757.70
IV. Total profit (Loss is listed with ―-‖) -85,878,340.80 69,778,225.75
Less: Income tax expense -6,756,228.32 26,266,024.94
V. Net profit (Net loss is listed with ―-‖) -79,122,112.48 43,512,200.81
(i) Classify by business continuity
1.continuous operating net profit (net loss listed with -‖) -79,122,112.48 43,512,200.81
2.termination of net profit (net loss listed with -‖)
(ii) Classify by ownership
1.Net profit attributable to owner‘s of parent company -85,565,716.91 56,441,479.14
2.Minority shareholders‘ gains and losses 6,443,604.43 -12,929,278.33
VI. Net after-tax of other comprehensive income -2,992,457.19 -2,068,017.04
Net after-tax of other comprehensive income attributable to
-2,519,653.81 -787,861.10
owners of parent company
(I) Other comprehensive income items which will not be
reclassified subsequently to profit of loss
1.Changes of the defined benefit plans that
re-measured
2.Other comprehensive income under equity method
that cannot be transfer to gain/loss
3.Change of fair value of investment in other equity
instrument
4.Fair value change of enterprise's credit risk
5. Other
(ii) Other comprehensive income items which will be
-2,519,653.81 -787,861.10
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
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CHANGHONG MEILING CO.,LTD. Annual Report 2020
investment
5.Cash flow hedging reserve
6.Translation differences arising on translation of
-2,519,653.81 -787,861.10
foreign currency financial statements
7.Other
Net after-tax of other comprehensive income attributable to
-472,803.38 -1,280,155.94
minority shareholders
VII. Total comprehensive income -82,114,569.67 41,444,183.77
Total comprehensive income attributable to owners of
-88,085,370.72 55,653,618.04
parent Company
Total comprehensive income attributable to minority
5,970,801.05 -14,209,434.27
shareholders
VIII. Earnings per share:
(i) Basic earnings per share -0.0819 0.0540
(ii) Diluted earnings per share -0.0819 0.0540
As for the enterprise combined under the same control, net profit of 0 Yuan achieved by the merged party before
combination while 0 Yuan achieved last period
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
In RMB
Item 2020 2019
I. Operating income 8,032,949,961.07 9,296,448,243.29
Less: Operating cost 7,576,052,272.85 8,437,561,503.10
Taxes and surcharge 77,270,806.49 76,143,013.23
Sales expenses 266,179,349.65 519,213,849.71
Administration expenses 121,576,790.77 135,073,396.64
R&D expenses 165,977,897.35 124,622,622.12
Financial expenses 11,164,234.35 3,761,368.95
Including: interest expenses 73,229,668.93 75,661,399.93
Interest income 108,915,320.16 96,733,624.71
Add: other income 61,723,009.62 71,320,375.50
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CHANGHONG MEILING CO.,LTD. Annual Report 2020
Investment income (Loss is listed with ―-‖) 154,731,621.05 33,377,287.02
Including: Investment income on affiliated Company
2,444,675.51 74,962.32
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 value (Loss is listed with ―-‖) 35,734,549.41 15,591,743.41
Loss of credit impairment (Loss is listed with ―-‖) -8,516,361.52 9,455,668.24
Losses of devaluation of asset (Loss is listed with ―-‖) -25,062,192.29 -17,125,818.42
Income on disposal of assets (Loss is listed with ―-‖) -736,644.05
II. Operating profit (Loss is listed with ―-‖) 33,339,235.88 111,955,101.24
Add: Non-operating income 3,765,462.09 907,600.61
Less: Non-operating expense 1,578,179.79 250,826.67
III. Total Profit (Loss is listed with ―-‖) 35,526,518.18 112,611,875.18
Less: Income tax -20,252,784.15 1,250,707.00
IV. Net profit (Net loss is listed with ―-‖) 55,779,302.33 111,361,168.18
(i) continuous operating net profit (net loss listed with -‖) 55,779,302.33 111,361,168.18
(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
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CHANGHONG MEILING CO.,LTD. Annual Report 2020
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 55,779,302.33 111,361,168.18
VII. Earnings per share:
(i) Basic earnings per share 0.0534 0.1066
(ii) Diluted earnings per share 0.0534 0.1066
Legal Representative: Wu Dinggang
Person in charge of accounting works: Pang Haitao
Person in charge of accounting institute: Yang Jun
5. Consolidated Cash Flow Statement
In RMB
Item 2020 2019
I. Cash flows arising from operating activities:
Cash received from selling commodities and providing
15,474,524,946.52 17,222,030,229.17
labour services
Net increase of customer deposit and interbank deposit
Net increase of loan from central bank
Net increase of capital borrowed from other financial
institution
Cash received from original insurance contract fee
Net cash received from reinsurance business
Net increase of insured savings and investment
Cash received from interest, commission charge and
commission
Net increase of capital borrowed
Net increase of returned business capital
Net cash received by agents in sale and purchase of
securities
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CHANGHONG MEILING CO.,LTD. Annual Report 2020
Write-back of tax received 486,548,522.92 376,209,568.82
Other cash received concerning operating activities 159,076,641.25 172,721,366.51
Subtotal of cash inflow arising from operating activities 16,120,150,110.69 17,770,961,164.50
Cash paid for purchasing commodities and receiving labour
12,027,673,706.26 13,458,134,618.83
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 1,431,514,956.02 1,513,839,139.23
Taxes paid 399,508,941.22 526,773,134.14
Other cash paid concerning operating activities 857,936,284.73 987,210,287.26
Subtotal of cash outflow arising from operating activities 14,716,633,888.23 16,485,957,179.46
Net cash flows arising from operating activities 1,403,516,222.46 1,285,003,985.04
II. Cash flows arising from investing activities:
Cash received from recovering investment 937,460,000.00 3,091,000,000.00
Cash received from investment income 44,100,269.99 53,507,866.92
Net cash received from disposal of fixed, intangible and
1,193,743.37 20,786,170.96
other long-term assets
Net cash received from disposal of subsidiaries and other
units
Other cash received concerning investing activities 188,247,281.95 126,761,536.28
Subtotal of cash inflow from investing activities 1,171,001,295.31 3,292,055,574.16
Cash paid for purchasing fixed, intangible and other
364,989,816.21 326,109,415.77
long-term assets
Cash paid for investment 1,435,330,051.17 2,010,087,040.00
Net increase of mortgaged loans
Net cash received from subsidiaries and other units
obtained
Other cash paid concerning investing activities 986,271.84 78,815,580.08
Subtotal of cash outflow from investing activities 1,801,306,139.22 2,415,012,035.85
Net cash flows arising from investing activities -630,304,843.91 877,043,538.31
III. Cash flows arising from financing activities
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CHANGHONG MEILING CO.,LTD. Annual Report 2020
Cash received from absorbing investment 8,441,064.00
Including: Cash received from absorbing minority
8,441,064.00
shareholders‘ investment by subsidiaries
Cash received from loans 2,021,603,483.37 1,723,227,548.80
Other cash received concerning financing activities 28,151,427.20
Subtotal of cash inflow from financing activities 2,049,754,910.57 1,731,668,612.80
Cash paid for settling debts 1,617,428,204.65 2,820,687,076.56
Cash paid for dividend and profit distributing or interest
118,512,956.15 148,244,143.81
paying
Including: Dividend and profit of minority shareholder paid
4,796,676.00 2,274,030.00
by subsidiaries
Other cash paid concerning financing activities 12,542,832.06 32,485,727.87
Subtotal of cash outflow from financing activities 1,748,483,992.86 3,001,416,948.24
Net cash flows arising from financing activities 301,270,917.71 -1,269,748,335.44
IV. Influence on cash and cash equivalents due to fluctuation in
-34,759,956.67 8,865,099.67
exchange rate
V. Net increase of cash and cash equivalents 1,039,722,339.59 901,164,287.58
Add: Balance of cash and cash equivalents at the period
5,385,807,475.51 4,484,643,187.93
-begin
VI. Balance of cash and cash equivalents at the period -end 6,425,529,815.10 5,385,807,475.51
Legal Representative: Wu Dinggang
Person in charge of accounting works: Pang Haitao
Person in charge of accounting institute: Yang Jun
6. Cash Flow Statement of Parent Company
In RMB
Item 2020 2019
I. Cash flows arising from operating activities:
Cash received from selling commodities and providing labour
7,102,136,613.89 8,627,727,420.59
services
Write-back of tax received 237,614,998.44 197,261,437.46
Other cash received concerning operating activities 74,421,463.54 89,705,595.42
Subtotal of cash inflow arising from operating activities 7,414,173,075.87 8,914,694,453.47
Cash paid for purchasing commodities and receiving labour 5,957,461,284.93 7,246,530,970.04
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CHANGHONG MEILING CO.,LTD. Annual Report 2020
service
Cash paid to/for staff and workers 380,635,018.64 411,671,230.56
Taxes paid 93,192,598.56 169,363,775.87
Other cash paid concerning operating activities 219,564,169.05 415,890,005.54
Subtotal of cash outflow arising from operating activities 6,650,853,071.18 8,243,455,982.01
Net cash flows arising from operating activities 763,320,004.69 671,238,471.46
II. Cash flows arising from investing activities:
Cash received from recovering investment 902,460,000.00 3,091,000,000.00
Cash received from investment income 112,286,752.95 58,097,866.92
Net cash received from disposal of fixed, intangible and other
761,361.40 12,166,744.58
long-term assets
Net cash received from disposal of subsidiaries and other units
Other cash received concerning investing activities 159,391,407.68 383,604,810.26
Subtotal of cash inflow from investing activities 1,174,899,522.03 3,544,869,421.76
Cash paid for purchasing fixed, intangible and other long-term
153,996,525.53 172,239,570.50
assets
Cash paid for investment 1,542,169,149.17 2,016,087,040.00
Net cash received from subsidiaries and other units obtained
Other cash paid concerning investing activities 262,000.00 75,496,976.70
Subtotal of cash outflow from investing activities 1,696,427,674.70 2,263,823,587.20
Net cash flows arising from investing activities -521,528,152.67 1,281,045,834.56
III. Cash flows arising from financing activities
Cash received from absorbing investment
Cash received from loans 1,593,705,833.37 1,480,244,977.59
Other cash received concerning financing activities 208,756,128.75 184,297,930.63
Subtotal of cash inflow from financing activities 1,802,461,962.12 1,664,542,908.22
Cash paid for settling debts 1,197,397,944.82 2,249,508,734.86
Cash paid for dividend and profit distributing or interest paying 103,355,298.99 133,129,179.81
Other cash paid concerning financing activities 143,243,602.49 117,503,039.34
Subtotal of cash outflow from financing activities 1,443,996,846.30 2,500,140,954.01
Net cash flows arising from financing activities 358,465,115.82 -835,598,045.79
IV. Influence on cash and cash equivalents due to fluctuation in
-20,153,571.24 6,329,365.90
exchange rate
V. Net increase of cash and cash equivalents 580,103,396.60 1,123,015,626.13
Add: Balance of cash and cash equivalents at the period -begin 4,017,400,437.18 2,894,384,811.05
213
CHANGHONG MEILING CO.,LTD. Annual Report 2020
VI. Balance of cash and cash equivalents at the period -end 4,597,503,833.78 4,017,400,437.18
Legal Representative: Wu Dinggang
Person in charge of accounting works: Pang Haitao
Person in charge of accounting institute: Yang Jun
214
CHANGHONG MEILING CO.,LTD. Annual Report 2020
7. Statement of Changes in Owners’ Equity (Consolidated)
This Period
In RMB
2020
Owners‘ equity attributable to the parent Company
Other
Item Provision
equity instrument Less: Other Minority Total owners‘
Reasonable of
Share capital Perpetual Capital reserve Inventory comprehensive Surplus reserve Retained profit Other Subtotal interests equity
Preferred reserve general
capital Other shares income
stock risk
securities
I. Balance at
the end of the 1,044,597,881.00 2,684,366,619.10 -18,931,430.36 410,786,860.20 884,127,743.42 5,004,947,673.36 107,027,038.74 5,111,974,712.10
last year
Add:
Changes of
accounting
policy
Error
correction of
the last period
Enterprise
combine
under the
same control
Other
II. Balance at 1,044,597,881.00 2,684,366,619.10 -18,931,430.36 410,786,860.20 884,127,743.42 5,004,947,673.36 107,027,038.74 5,111,974,712.10
215
CHANGHONG MEILING CO.,LTD. Annual Report 2020
the beginning
of this year
III. Increase/
Decrease in
this year -529,389.98 9,929,336.18 -2,519,653.81 5,577,930.23 -143,373,541.19 -150,773,990.93 894,244.75 -149,879,746.18
(Decrease is
listed with ―-‖)
(i) Total
comprehensive -2,519,653.81 -85,565,716.91 -88,085,370.72 5,970,801.05 -82,114,569.67
income
(ii) Owners‘
devoted and
-529,389.98 9,929,336.18 -10,458,726.16 320,119.70 -10,138,606.46
decreased
capital
1.Common
shares
-5,605.38 9,929,336.18 -9,934,941.56 -9,934,941.56
invested by
shareholders
2. Capital
invested by
holders of
other equity
instruments
3. Amount
reckoned into
owners equity
with
share-based
payment
4. Other -523,784.60 -523,784.60 320,119.70 -203,664.90
(III) Profit
5,577,930.23 -57,807,824.28 -52,229,894.05 -5,396,676.00 -57,626,570.05
distribution
216
CHANGHONG MEILING CO.,LTD. Annual Report 2020
1. Withdrawal
of surplus 5,577,930.23 -5,577,930.23
reserves
2. Withdrawal
of general risk
provisions
3. Distribution
for owners (or -52,229,894.05 -52,229,894.05 -5,396,676.00 -57,626,570.05
shareholders)
4. Other
(IV) Carrying
forward
internal
owners‘ equity
1. Capital
reserves
conversed to
capital (share
capital)
2. Surplus
reserves
conversed to
capital (share
capital)
3. Remedying
loss with
surplus reserve
4．Carry-over
retained
earnings
from the
defined
benefit
217
CHANGHONG MEILING CO.,LTD. Annual Report 2020
plans
5．Carry-over
retained
earnings from
other
comprehensive
income
6. Other
(V)
Reasonable
reserve
1. Withdrawal
in the report
period
2. Usage in the
report period
(VI)Others
IV. Balance at
the end of the 1,044,597,881.00 2,683,837,229.12 9,929,336.18 -21,451,084.17 416,364,790.43 740,754,202.23 4,854,173,682.43 107,921,283.49 4,962,094,965.92
report period
Last Period
In RMB
2019
Owners‘ equity attributable to the parent Company
Other
Item Provision
equity instrument Less: Other Minority Total owners‘
Reasonable of
Share capital Capital reserve Inventory comprehensive Surplus reserve Retained profit Other Subtotal interests equity
Perpetual reserve general
Preferred shares income
capital Other risk
stock
securities
218
CHANGHONG MEILING CO.,LTD. Annual Report 2020
I. Balance at
the end of the 1,044,597,881.00 2,684,369,598.46 -18,143,569.26 400,673,993.50 904,232,582.87 5,015,730,486.57 119,819,558.59 5,135,550,045.16
last year
Add:
Changes of
-1,023,250.12 -2,734,328.91 -3,757,579.03 -4,385,295.55 -8,142,874.58
accounting
policy
Error
correction of
the last period
Enterprise
combine
under the
same control
Other
II. Balance at
the beginning 1,044,597,881.00 2,684,369,598.46 -18,143,569.26 399,650,743.38 901,498,253.96 5,011,972,907.54 115,434,263.04 5,127,407,170.58
of this year
III. Increase/
Decrease in
this year -2,979.36 -787,861.10 11,136,116.82 -17,370,510.54 -7,025,234.18 -8,407,224.30 -15,432,458.48
(Decrease is
listed with ―-‖)
(i) Total
comprehensive -787,861.10 56,441,479.14 55,653,618.04 -14,209,434.27 41,444,183.77
income
(ii) Owners‘
devoted and
-2,979.36 -2,979.36 8,143,349.03 8,140,369.67
decreased
capital
219
CHANGHONG MEILING CO.,LTD. Annual Report 2020
1.Common
shares
8,140,369.67 8,140,369.67
invested by
shareholders
2. Capital
invested by
holders of
other equity
instruments
3. Amount
reckoned into
owners equity
with
share-based
payment
4. Other -2,979.36 -2,979.36 2,979.36
(III) Profit
11,136,116.82 -73,811,989.68 -62,675,872.86 -2,341,139.06 -65,017,011.92
distribution
1. Withdrawal
of surplus 11,136,116.82 -11,136,116.82
reserves
2. Withdrawal
of general risk
provisions
3. Distribution
for owners (or -62,675,872.86 -62,675,872.86 -2,341,139.06 -65,017,011.92
shareholders)
4. Other
(IV) Carrying
forward
internal
220
CHANGHONG MEILING CO.,LTD. Annual Report 2020
owners‘ equity
1. Capital
reserves
conversed to
capital (share
capital)
2. Surplus
reserves
conversed to
capital (share
capital)
3. Remedying
loss with
surplus reserve
4．Carry-over
retained
earnings
from the
defined
benefit
plans
5．Carry-over
retained
earnings from
other
comprehensive
income
6. Other
(V)
Reasonable
reserve
1. Withdrawal
in the report
221
CHANGHONG MEILING CO.,LTD. Annual Report 2020
period
2. Usage in the
report period
(VI)Others
IV. Balance at
the end of the 1,044,597,881.00 2,684,366,619.10 -18,931,430.36 410,786,860.20 884,127,743.42 5,004,947,673.36 107,027,038.74 5,111,974,712.10
report period
Legal Representative: Wu Dinggang
Person in charge of accounting works: Pang Haitao
Person in charge of accounting institute: Yang Jun
8. Statement of Changes in Owners’ Equity (Parent Company)
This Period
In RMB
2020
Other equity instrument
Item Less: Other
Perpetual Capital public Reasonable Total owners‘
Share capital Preferred Inventory comprehensive Surplus reserve Retained profit Other
capital Other reserve reserve equity
stock shares income
securities
I. Balance at the end of the last
1,044,597,881.00 2,753,017,007.10 410,568,694.52 945,907,861.41 5,154,091,444.03
year
Add: Changes of accounting
policy
Error correction of the
last period
222
CHANGHONG MEILING CO.,LTD. Annual Report 2020
Other
II. Balance at the beginning of this
1,044,597,881.00 2,753,017,007.10 410,568,694.52 945,907,861.41 5,154,091,444.03
year
III. Increase/ Decrease in this year
120,780.89 9,929,336.18 5,577,930.23 -2,028,521.95 -6,259,147.01
(Decrease is listed with ―-‖)
(i) Total comprehensive income 55,779,302.33 55,779,302.33
(ii) Owners‘ devoted and
120,780.89 9,929,336.18 -9,808,555.29
decreased capital
1.Common shares invested by
-5,605.38 9,929,336.18 -9,934,941.56
shareholders
2. Capital invested by holders of
other equity instruments
3. Amount reckoned into owners
equity with share-based payment
4. Other 126,386.27 126,386.27
(III) Profit distribution 5,577,930.23 -57,807,824.28 -52,229,894.05
1. Withdrawal of surplus reserves 5,577,930.23 -5,577,930.23
2. Distribution for owners (or
-52,229,894.05 -52,229,894.05
shareholders)
3. Other
(IV) Carrying forward internal
owners‘ equity
1. Capital reserves conversed to
capital (share capital)
2. Surplus reserves conversed to
capital (share capital)
3. Remedying loss with surplus
reserve
223
CHANGHONG MEILING CO.,LTD. Annual Report 2020
4 ． Carry-over retained earnings
from the defined benefit plans
5 ． Carry-over retained earnings
from other comprehensive income
6. Other
(V) Reasonable reserve
1. Withdrawal in the report period
2. Usage in the report period
(VI)Others
IV. Balance at the end of the report
1,044,597,881.00 2,753,137,787.99 9,929,336.18 416,146,624.75 943,879,339.46 5,147,832,297.02
period
Last period
In RMB
2019
Other equity instrument
Item Less: Other
Perpetual Capital public Reasonable Total owners‘
Share capital Preferred Inventory comprehensive Surplus reserve Retained profit Other
capital Other reserve reserve equity
stock shares income
securities
I. Balance at the end of the last
1,044,597,881.00 2,753,017,007.10 400,455,827.82 917,567,933.94 5,115,638,649.86
year
Add: Changes of accounting
-1,023,250.12 -9,209,251.03 -10,232,501.15
policy
Error correction of the
last period
Other
II. Balance at the beginning of
1,044,597,881.00 2,753,017,007.10 399,432,577.70 908,358,682.91 5,105,406,148.71
this year
224
CHANGHONG MEILING CO.,LTD. Annual Report 2020
III. Increase/ Decrease in this
11,136,116.82 37,549,178.50 48,685,295.32
year (Decrease is listed with ―-‖)
(i) Total comprehensive income 111,361,168.18 111,361,168.18
(ii) Owners‘ devoted and
decreased capital
1.Common shares invested by
shareholders
2. Capital invested by holders of
other equity instruments
3. Amount reckoned into owners
equity with share-based payment
4. Other
(III) Profit distribution 11,136,116.82 -73,811,989.68 -62,675,872.86
1. Withdrawal of surplus reserves 11,136,116.82 -11,136,116.82
2. Distribution for owners (or
-62,675,872.86 -62,675,872.86
shareholders)
3. Other
(IV) Carrying forward internal
owners‘ equity
1. Capital reserves conversed to
capital (share capital)
2. Surplus reserves conversed to
capital (share capital)
3. Remedying loss with surplus
reserve
4．Carry-over retained earnings
from the defined benefit plans
5．Carry-over retained earnings
from other comprehensive
225
CHANGHONG MEILING CO.,LTD. Annual Report 2020
income
6. Other
(V) Reasonable reserve
1. Withdrawal in the report
period
2. Usage in the report period
(VI)Others
IV. Balance at the end of the
1,044,597,881.00 2,753,017,007.10 410,568,694.52 945,907,861.41 5,154,091,444.03
report period
Legal Representative: Wu Dinggang
Person in charge of accounting works: Pang Haitao
Person in charge of accounting institute: Yang Jun
226
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
I. Company profile
Changhong Meiling Co., Ltd (hereinafter referred to as ―the Company‖) ，originally named as Hefei Meiling
Co., Ltd. is an incorporated Company established and reorganized by Hefei Meiling Refrigerator General
Factory and approved on June 12th 1992 through [WanTiGaiHanZi (1992) No.039] issued by original
Mechanism Reform Committee of Anhui Province. On August 30th 1993, through Anhui Provincial
Government [Wanzhenmin (1993) No.166] and re-examination of China Securities Regulatory Commission,
the Company made first public issue for 30 million A shares and the Company was listed on Oct. 18th, 1993
in Shenzhen Stock Exchange. On August 13th, 1996, the Company was approved to issue 100 million B
shares to investors abroad through [ZhengWeiFa (1996) No.26] issued by China Securities Regulatory
Commission. The Company went public in Shenzhen Stock Exchange on August 28th, 1996.
State-owned Assets Supervision & Administration Commission of the State Council approved such transfers
with Document Guozi Chanquan No.253 in 2007 Reply on Matters of Hefei Meiling Group Holdings
Company Limited Transferring Partial State-owned Ownership, Hefei Meiling Group Holdings Company
Limited (hereinafter abbreviated as Meiling Group) transferred its holding 37,852,683 shares in 82,852,683
state-owned shares of the Company to Sichuan Changhong Electronic Group Co., Ltd (hereinafter
abbreviated as Changhong Group), other 45,000,000 shares to Sichuan Changhong Electric Co. Ltd
(hereinafter abbreviated as Sichuan Changhong). On Aug 15, 2007, the above ownership was transferred and
Cleaning Corporation Limited.
On 27 August 2007, State-owned Assets Supervision & Administration Commission of Anhui Provincial
Government replied with Document [WGZCQH (2007) No.309] Reply on ―Related Matters of Share Merger
Reform of Meiling Co., Ltd.‖, agreed the Company‘s ownership split reform plan. The Company made
consideration that non-tradable share holders deliver 1.5 shares to A share holders per 10 shares, and original
Meiling Group made prepayment 3,360,329 shares for some non-tradable share holders as consideration for
split reform plan.
On 29 May 2008, concerning 34,359,384 state-owned shares (including 3,360,329 shares paid for other
non-tradable shareholders by original Meiling Group in share reform) held by original Meiling Group, the
―Notice of Freely Transfer of Meiling Electrics Equity held by Meiling Group‖[HGZCQ(2008) No. 59]
issued from State-owned Assets Supervision & Administration Commission of Hefei Municipal, agrees to
transfer the above said shares to Hefei Xingtai Holding Group Co., Ltd.(―Xingtai Holding Co.,‖) for free. On
7 August 2008, the ―Reply of Transfer Freely of Part of the Shares of Hefei Meiling Co., Ltd. held by
State-owned shareholders‖ [GZCQ (2007) No. 752] issued by SASAC, agrees the above said transferring.
On October 29, 2008, Changhong Group Company signed Agreement on Equity Transfer of Hefei Meiling
Co., Ltd with Sichuan Changhong, in which 32,078,846 tradable A-shares with conditional subscription of
244
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
the Company (accounting for 7.76% in total shares) held by Changhong Group Company. On 23 December
2008, ―Reply of Transfer Freely of Part of the Shares of Hefei Meiling Co., Ltd. held by State-owned
shareholders‖ [GZCQ (2008) No. 1413] issued by SASAC agrees the above said share transferring.
On 24 December 2010, being deliberated and approved in 32nd Session of 6th BOD and 2nd Extraordinary
Shareholders‘ General Meeting of 2010 as well as approval of document [ZJXP (2010) No. 1715] from
CSRC, totally 116,731,500 RMB ordinary shares (A stock) were offering privately to target investors with
issue price of RMB 10.28/share. Capital collecting amounting to RMB 1,199,999,820 after issuing expenses
RMB 22,045,500 deducted, net capital collected amounting to RMB 1,177,954,320, and paid-in capital
(share capital) increased RMB 116,731,500 with capital reserve (share premium) RMB 1,061,106,088.5
increased. The increasing capital has been verified by Capital Verification Report No.:
［XYZH2010CDA6021］issued from Shinwing CPA Co., Ltd.
On 20 June 2011, the general meeting of the Company considered and approved the 2010 profit distribution
plan, namely to distribute cash dividends of RMB0.5 (tax included) plus two shares for every ten shares held
by shareholders to all shareholders, based on the total share capital of 530,374,449 shares as of 31 December
2010. The total share capital of the Company upon profit distribution increased to 636,449,338 shares. The
capital increase was verified by Anhui Huashen Zhengda Accounting Firm with the verification report
WHSZDKYZ (2011) No.141.
On 26 June 2012, the general meeting of the Company considered and approved the 2011 profit distribution
and capitalization of capital reserve plan, namely to distribute cash dividends of RMB 0.5 (tax included) plus
two shares for every ten shares to all shareholders capitalized from capital reserve, based on the total share
capital of 636,449,338 shares as of 31 December 2011. The total share capital of the Company upon
implementation of capitalization of capital reserve increased to 763,739,205 shares from 636,449,338 shares,
and was verified by Anhui Anlian Xinda Accounting Firm with the verification report WALXDYZ (2012)
No.093.
On November 18, 2015, considered and approved by the 12th Session of the 8th BOD of the company and the
first extraordinary general meeting in 2016, and approved by the document of China Securities Regulatory
Commission [CSRC License No. (2016) 1396] ―Reply to the approval of non-public offering of shares of
Hefei Meiling Co., Ltd.‖, the company has actually raised funds of 1,569,999,998.84 Yuan by non-public
offering of no more than 334,042,553 new shares at face value of 1 Yuan per share and with issue price no
less than RMB 4.70 per share, after deducting the issue costs of 29,267,276.08 Yuan , the net amount of
raised funds is 1,540,732,722.76 Yuan , the increased paid-in capital (share capital) of 280,858,676.00 Yuan ,
increased capital reserve (share premium) of 1,259,874,046.76 Yuan. This capital increase has been verified
by No.［XYZH2016CDA40272］capital verification report of Shine Wing Certified Public Accountants
245
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
(LLP).
Ended as 31 December 2020, total share capital of the Company amounting to 1,044,597,881 shares with
ordinary shares in full. Among which, 881,733,881 shares of A-share accounting 84.41% in total shares while
B-share with 162,864,000 shares accounting 15.59% in total shares. Detail share capital as:
Type of stock Quantity Proportion
(I)Restricted shares 10,472,676 1.00%
1. State-owned shares
2. State-owned legal person‘s shares 1,653,735 0.16%
3. Other domestic shares 7,551,521 0.72%
Including: Domestic legal person‘s shares 3,978,329 0.38%
Domestic natural person‘s shares 3,573,192 0.34%
4. Foreign shares 1,267,420 0.12%
Including: Overseas legal person‘s shares
Overseas natural person‘s shares 1,267,420 0.12%
(II)Unrestricted shares 1,034,125,205 99.00%
1. RMB Ordinary shares 872,528,625 83.53%
2. Domestically listed foreign shares 161,596,580 15.47%
3. Overseas listed foreign shares
4. Others
Total shares 1,044,597,881 100.00%
The Company belongs to the manufacture of light industry, and engaged in the production and sale of
refrigerator, freezer and air-conditioner. Unified social credit code of the Company: 9134000014918555XK;
Address: No.2163, Lianhua Road, Economy and Technology Development Zone, Hefei City; Legal
Representative: Wu Dinggang; register capital (paid-in capital): RMB 1,044,597,881; type of company:
limited liability company(joint venture and listed of Taiwan, Hong Kong and Macao) Business Scope: R&D,
manufacture and sales of cooling apparatus, air-conditioner, washing machine, water heater, kitchenware,
home decoration, bathroom, lamps & lanterns, household & similar appliance, injection plastic machine of
computer controlling, plastic products, metalwork, packaging products and decorations as well as the
installation and technical consultant services. Business of self-produced products, technology export and
import-export of the raw& auxiliary materials, machinery equipment, instrument and technology; department
sales and transportation (Excluding dangerous chemicals), computer network system integration, intelligent
product system integration, software development and technical information services, development,
production, sales and service of automation equipment and electronic products, sales services of cold chain
transport vehicles and refrigerator and freezer van, development, production, sales and service of cold chain
insulation boxes, research and development, production, sales and service of cold storage, commercial
freezer chain display cabinets, commercial cold chain products. (Projects that require approval in accordance
246
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
with the law can only be operated after approval by relevant departments)
II. Scope of consolidated financial statement
In the reporting period, the consolidated financial statements of the Company cover 31 subsidiaries,
including Sichuan Changhong Air-conditioner Co., Ltd, Zhongshan Changhong Electric Co., Ltd. and
Zhongke Meiling Cryogenic Technology Co., Ltd. etc. Compared with the previous year, two new
subsidiaries were included in the consolidated statement scope during the reporting period, that is
CH-Meiling International (Philippines) Inc. and Hefei Changhong Meiling Life Electric Co., Ltd. And the
subsidiary Guangxi Huidian Household Appliances Co., Ltd. and Changmei Technology Co., Ltd. are
reduced for clearing off. In addition, the subsidiaries Chengdu Meiling Electrical Marketing Co., Ltd.,
Fuzhou Meiling Electrical Marketing Co., Ltd., Nanjing Meiling Electrical Marketing Co., Ltd., Hangzhou
Meiling Electrical Marketing Co., Ltd., Shanghai Meiling Electrical Marketing Co., Ltd., and Beijing
Meiling Electrical Marketing Co., Ltd. were decreased due to the merger.
More details can be seen in the report ―VII. Changes in the scope of the merger‖ and ―XIII. Equity in other
entities‖carry in the Note
III. Basis for preparation of financial statement
1. Basis for preparation
The financial statements of the Company were prepared in accordance with the actual transactions and
proceedings, and relevant regulation of Accounting Standards for Enterprise released by the Ministry of
Finance, and was on the basis of sustainable operation, and the accounting policy and estimation stated in the
―IV. Significant Accounting Policy and Accounting Estimation‖
2.Continuous operation
The Company recently has a history of profitability operation and has financial resources supporting, and
prepared the financial statement on basis of going concern is reasonable.
IV. Significant Accounting Policy and accounting Estimation
1. Statement on observation of accounting standards for enterprise
The financial statement prepared by the Company applies with the requirements of Accounting Standard for
Enterprise, and reflects the financial condition, operational achievements and cash flow of the Company
effectively and completely.
2. Accounting period
The accounting period of the Company is the calendar date from 1 January to 31 December.
3. Operation cycle
247
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
Operation cycle of the Company was 12 months, and it is the standard of flow classification for assets and
liabilities.
4. Standard currency for accounting
The Company takes RMB as the standard currency for accounting.
5. Accountant arrangement method of business combination under common control and not under common
control
As acquirer, the Company measures the assets and liabilities acquired through business combination under
common control at their carrying values as reflected in the consolidated financial statement of the ultimate
controller as of the combination date. Capital reserve shall be adjusted in respect of any difference between
carrying value of the net assets acquired and carrying value of the combination consideration paid. In case
that capital reserve is insufficient to offset, the Company would adjust retained earnings.
The acquiree‘s net identifiable assets, liabilities or contingent liabilities acquired through business
combination not under common control shall be measured at fair value as of the acquisition date. The cost of
combination represents the fair value of the cash or non-cash assets paid, liabilities issued or committed and
equity securities issued by the Company as at the date of combination in consideration for acquiring the
controlling power in the acquiree, together with the sum of any directly related expenses occurred during
business combination(in case of such business combination as gradually realized through various transactions,
the combination cost refers to the sum of each cost of respective separate transaction). Where the cost of the
combination exceeds the acquirer‘s interest in the fair value of the acquirer‘s identifiable net assets acquired,
the difference is recognized as goodwill; where the cost of combination is lower than the acquirer‘s interest
in the fair value of the acquiree‘s identifiable net assets, the Company shall firstly make further review on the
fair values of the net identifiable assets, liabilities or contingent liabilities acquired as well as the fair value of
the non-cash assets portion of combination consideration or the equity securities issued by the Company. In
case that the Company finds the cost of combination is still lower than the acquirer‘s interest in the fair value
of the acquiree‘s identifiable net assets after such further review, the difference is recognized in
non-operating income for the current period when combination occurs.
6. Measures on Preparation of Consolidated Financial Statements
The Company shall put all the subsidiaries controlled and main body structured into consolidated financial
statements.
Any difference arising from the inconformity of accounting year or accounting policies between the
subsidiaries and the Company shall be adjusted in the consolidated financial statements.
248
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
All the material inter-company transactions, non-extraordinary items and unrealized profit within the
combination scope are written-off when preparing consolidated financial statement. Owners‘ equity of
subsidiary not attributable to parent company and current net gains and losses, other comprehensive income
and total comprehensive income attributable to minority shareholders are recognized as non-controlling
interests, minority interests, other comprehensive income attributable to minority shareholders and total
comprehensive income attributable to minority shareholders in consolidated financial statement respectively.
As for subsidiary acquired through business combination under common control, its operating results and
cash flow will be included in consolidated financial statement since the beginning of the period when
combination occurs. When preparing comparative consolidated financial statement, the relevant items in
previous years financial statement shall be adjusted as if the reporting entity formed upon combination has
been existing since the ultimate controller commenced relevant control.
As for equity interests of the investee under common control acquired through various transactions which
eventually formed business combination, the Company shall supplement disclosure of the accounting
treatment in consolidated financial statement in the reporting period when controlling power is obtained. For
example, as for equity interests of the investee under common control acquired through various transactions
which eventually formed business combination, adjustments shall be made as if the current status had been
existing when the ultimate controller commenced control in connection of preparing consolidated financial
statement; in connection with preparing comparative statement, the Company shall consolidate the relevant
assets and liabilities of the acquiree into the Company‘s comparative consolidated financial statement to the
extent not earlier than the timing when the Company and the acquiree are all under control of the ultimate
controller, and the net assets increased due to combination shall be used to adjust relevant items under
owners‘ equity in comparative statement. In order to prevent double computation of the value of the
acquiree‘s net assets, the relevant profits and losses, other comprehensive income and change of other net
assets recognized during the period from the date when the Company acquires original equity interests and
the date when the Company and the acquiree are all under ultimate control of the same party (whichever is
later) to the date of combination in respect of the long-term equity investment held by the Company before
satisfaction of combination shall be utilized to offset the beginning retained earnings and current gains and
losses in the period as the comparative financial statement involves, respectively.
As for subsidiary acquired through business combination not under common control, its operating results and
cash flow will be included in consolidated financial statement since the Company obtains controlling power.
When preparing consolidated financial statement, the Company shall adjust the subsidiary‘s financial
statement based on the fair value of the various identifiable assets, liabilities or contingent liabilities
recognized as of the acquisition date.
249
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
As for equity interests of the investee not under common control acquired through various transactions which
eventually formed business combination, the Company shall supplement disclosure of the accounting
treatment in consolidated financial statement in the reporting period when controlling power is obtained. For
example, as for equity interests of the investee not under common control acquired through various
transactions which eventually formed business combination, when preparing consolidated financial statement,
the Company would re-measure the equity interests held in the acquiree before acquisition date at their fair
value as of the acquisition date, and any difference between the fair value and carrying value is included in
current investment income. in case that the equity interests in acquiree held by the Company before the
relevant acquisition date involves other comprehensive income at equity method and change of other owners‘
equity (other than net gains and losses, other comprehensive income and profit distribution), then the equity
interests would transfer to investment gains and losses for the period which the acquisition date falls upon.
The other comprehensive income arising from change of the net liabilities or net assets under established
benefit scheme as acquiree‘s re-measured such scheme is excluded.
The transaction with non-controlling interest to dispose long-term equity investment in a subsidiary without
losing control rights over the subsidiary, the difference between the proceeds from disposal of interests and
the decrease of the shared net assets of the subsidiary is adjusted to capital premium (share premium). In case
capital reserve is not sufficient to offset the difference, retained earnings will be adjusted.
As for disposal of part equity investment which leads to losing control over the investee, the Company would
re-measure the remaining equity interests at their fair value as of the date when the Company loses control
over the investee when preparing consolidated financial statement. The sum of consideration received from
disposal of equity interest and fair value of the remaining equity interest, less the net assets of the original
subsidiary attributable to the Company calculated based on the original shareholding proportion since the
acquisition date or the date then consolidation commences, is included in investment gains and losses for the
period when control is lost, meanwhile to offset goodwill. Other comprehensive income related to equity
interest investment in original subsidiaries is transferred into current investment gains and losses upon lost of
control.
If the disposal of the equity investment of a subsidiary is realized through multiple transactions until loss of
control and is a package deal, the accounting treatment of these transactions should be dealt with as one
transaction of disposal of the subsidiary until loss of control. However, before the Company loses total
control of the subsidiary, the differences between the actual disposal price and the share of the net assets of
the subsidiary disposed of in every transaction should be recognized as other comprehensive income in the
consolidated financial statements, and transferred to profit or loss when losing control.
7. Accounting treatment for joint venture arrangement and joint controlled entity
The joint venture arrangement of the Company consists of joint controlled entity and joint venture. As for
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Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
jointly controlled entity, the Company determines the assets held and liabilities assumed separately as a party
to the jointly controlled entity, recognizes such assets and liabilities according to its proportion, and
recognizes relevant income and expense separately under relevant agreement or according to its proportion.
As for asset transaction relating to purchase and sales with the jointly controlled entity which does not
constitute business activity, part of the gains and losses arising from such transaction attributable to other
participators of the jointly controlled entity is only recognized.
8. Cash and cash equivalents
Cash in the cash flow statement comprises the Group‘s cash on hand and deposits that can be readily
withdrawn on demand. Cash equivalents are short-term, highly liquid investments held by the Group, that
are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in
value, including but not limited to the followings which meet the aforesaid conditions: debt investment
matured within three months upon the acquisition date, bank time deposit which can be early withdrew by
serving a notice and transferrable deposit receipt, etc. for time deposit which can not be used for payment at
any time, it would be note recognized as cash; while if can be used for such purpose, it would be recognized
as cash. Guarantee deposit over three months in other monetary capital shall not be recognized as cash
equivalents, and those less than three months are recognized as cash equivalents.
9. Foreign currency business and foreign currency financial statement conversion
(1) Foreign currency business
As for the foreign currency business, the Company converts the foreign currency amount into RMB amount
pursuant to the spot exchange rate as of the business day. As at the balance sheet date, monetary items
expressed by foreign currency are converted into RMB pursuant to the spot exchange rate as of the balance
sheet date. The conversion difference occurred is recorded into prevailing gains and losses, other than the
disclosure which is made according to capitalization rules for the exchange difference occurred from the
special foreign currency borrowings borrowed for constructing and producing the assets satisfying condition
of capitalization. As for the foreign currency non-monetary items measured by fair value, the amount is then
converted into RMB according to the spot exchange rate as of the confirmation day for fair value. And the
conversion difference occurred during the procedure is recorded into prevailing gains and losses directly as
change of fair value. As for the foreign currency non-monetary items measured by historical cost, conversion
is made with the spot exchange rate as of the business day, with no change in RMB amount.
(2) Conversion of foreign currency financial statement
Spot exchange rate as of the balance sheet date is adopted for conversion of assets and liabilities in foreign
currency balance sheet; as for the items in statement of owners‘ equity except for ―Retained profit‖,
conversion is made pursuant to the spot exchange rate of business day; income and expense items in income
statement then are also converted pursuant to the spot exchange rate of transaction day. Difference arising
from the aforementioned conversions shall be listed separately in items of owners‘ equity. Spot exchange rate
as of the occurrence date of cash flow is adopted for conversion of foreign currency cash flow. The amount
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Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
of cash affected by exchange rate movement shall be listed separately in cash flow statement.
10. Financial assets and liabilities
A financial asset or liability is recognized when the group becomes a party to a financial instrument contract.
The financial assets and financial liabilities are measured at fair value on initial recognition. For the financial
assets and liabilities measured by fair value and with variation reckoned into current gains/losses, the related
transaction expenses are directly included in current gains or losses; for other types of financial assets and
liabilities, the related transaction costs are included in the initial recognition amount.
(1) Method for determining the fair value of financial assets and financial liabilities
Fair value refers to the price that a market participant can get by selling an asset or has to pay for transferring
a liability in an orderly transaction that occurs on the measurement date. For a financial instrument having an
active market, the Company uses the quoted prices in the active market to determine its fair value.
Quotations in an active market refer to prices that are readily available from exchanges, brokers, industry
associations, pricing services, etc., and represent the prices of market transactions that actually occur in an
arm's length transaction. If there is no active market for a financial instrument, the Company uses valuation
techniques to determine its fair value. Valuation techniques include reference to prices used in recent market
transactions by parties familiar with the situation and through voluntary trade, and reference to current fair
values of other financial instruments that are substantially identical, discounted cash flow methods, and
option pricing models.
(2) Category and measurement on financial assets
The group divided the financial assets as the follow while initially recognized: the financial assets measured
at amortized cost; the financial assets measured at fair value and whose changes are included in other
comprehensive income; and the financial assets measured by fair value and with variation reckoned into
current gains/losses. The classification of financial assets depends on the business model that the Group's
enterprises manage the financial assets and the cash flow characteristics of the financial assets.
1) The financial assets measured at amortized cost
Financial assets are classified as financial assets measured at amortized cost when they also meet the
following conditions: The group's business model for managing the financial assets is to collect contractual
cash flows; the contractual terms of the financial assets stipulate that cash flow generated on a specific date is
only paid for the principal and interest based on the outstanding principal amount. For such financial assets,
the effective interest method is used for subsequent measurement according to the amortized cost, and the
gains or losses arising from amortization or impairment are included in current profits and losses. Such
financial assets mainly include monetary funds, notes receivable, accounts receivable, other receivables, debt
investment and long-term receivables, and so on. The Group lists the debt investment and long-term
receivables due within one year (including one year) from the balance sheet date as non-current assets due
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Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
within one year, and lists the debt investment with time limit within one year (including one year) when
acquired as other current assets.
2) Financial assets measured at fair value and whose changes are included in other comprehensive income
Financial assets are classified as financial assets measured at fair value and whose changes are included in
other comprehensive income when they also meet the following conditions: The Group's business model for
managing the financial assets is targeted at both the collection of contractual cash flows and the sale of
financial assets; the contractual terms of the financial asset stipulate that the cash flow generated on a
specific date is only the payment of the principal and the interest based on the outstanding principal amount.
For such financial assets, fair value is used for subsequent measurement. The discount or premium is
amortized by using the effective interest method and is recognized as interest income or expenses. Except the
impairment losses and the exchange differences of foreign currency monetary financial assets are recognized
as the current profits and losses, the changes in the fair value of such financial assets are recognized as other
comprehensive income until the financial assets are derecognized, the accumulated gains or losses are
transferred to the current profits and losses. Interest income related to such financial assets is included in the
current profit and loss. Such financial assets are listed as other debt investments, other debt investments due
within one year (including one year) from the balance sheet date are listed as non-current assets due within
one year; and other debt investments with time limit within one year (including one year) when acquired are
listed as other current assets.
3) Financial assets measured at fair value and whose changes are included in current gains/losses
Financial assets except for the above-mentioned financial assets measured at amortized cost and financial
assets measured at fair value and whose changes are included in other comprehensive income are classified
as financial assets measured at fair value and whose changes are included in current profits and losses, which
adopt fair value for subsequent measurement and all changes in fair value are included in current profits and
losses. The Group classifies non-trading equity instruments as financial assets measured at fair value and
whose changes are included in current profits and losses. Such financial assets are presented as trading
financial assets, and those expire after more than one year and are expected to be held for more than one year
are presented as other non-current financial assets.
(3) Devaluation of financial instrument
On the basis of expected credit losses, the Group performs impairment treatment on financial assets
measured at amortized cost and financial assets measured at fair value and whose changes are included in
other comprehensive income and recognize the provisions for loss.
Credit loss refers to the difference between all contractual cash flows that the Company discounts at the
original actual interest rate and are receivable in accordance with contract and all cash flows expected to be
received, that is, the present value of all cash shortages. Among them, for the purchase or source of financial
assets that have suffered credit impairment, the Company discounts the financial assets at the actual interest
253
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
rate adjusted by credit.
The Group considers all reasonable and evidenced information, including forward-looking information,
based on credit risk characteristics. When assessing the expected credit losses of receivables, they are
classified according to the specific credit risk characteristics as follows:
1) For receivables and contractual assets and lease receivables (including significant financing components
and not including significant financing components), the Group measures the provisions for loss based on the
amount of expected credit losses equivalent to the entire duration.
①Evaluate expected credit losses based on individual items: credit notes receivable (including accepted
letters of credit) of financial institutions in notes receivable and accounts receivable, and related party
payments (related parties under the same control and significant related parties); dividends receivable,
interest receivable, reserve funds, investment loans, cash deposits (including warranty), government grants
(including dismantling subsidies) in other receivables, and receivables with significant financing components
(i.e. long-term receivables);
②Evaluate expected credit losses based on customer credit characteristics and ageing combinations: in
addition to evaluating expected credit losses based on individual items, the Group evaluates the expected
credit losses of notes receivable and accounts receivable and other receivables financial instruments based on
customer credit characteristics and ageing combinations.
The Group considers all reasonable and evidenced information, including forward-looking information, when
assessing expected credit losses. When there is objective evidence that its customer credit characteristics and
ageing combination cannot reasonably reflect its expected credit loss, the current value of the expected future
cash flow is measured by a single item, and the cash flow shortage is directly written down the book balance
of the financial asset.
2) Assess the expected credit losses on a case-by-case basis for other assets to which the financial
instruments are impaired, such as the loan commitments and financial guarantee contracts that are not
measured at fair value through profit or loss, financial assets measured at fair value and whose changes are
recognized in other comprehensive income; other financial assets measured at amortized cost (such as other
current assets, other non-current financial assets, etc.).
(4) Reorganization basis and measure method for transfer of financial assets
The financial assets meet one of following requirements will be terminated recognition: ① The contract
rights of collecting cash flow of the financial assets is terminated; ②The financial assets has already been
transferred, and the Company has transferred almost all risks and remunerations of financial assets ownership
to the transferee; ③The financial assets has been transferred, even though the Company has neither
transferred nor kept almost all risks and remunerations of financial assets ownership, the Company has given
up controlling the financial assets.
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Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
If the enterprise has neither transferred or kept almost all risks and remunerations of financial assets
ownership, nor given up controlling the financial assets, then confirm the relevant financial assets according
to how it continues to involve into the transferred financial assets and confirm the relevant liabilities
accordingly. The extent of continuing involvement in the transferred financial assets refers to the level of risk
arising from the changes in financial assets value faced by the enterprise.
If the entire transfer of financial assets satisfies the demand for derecognition, reckon the balance between
the book value of the transferred financial assets and the sum of consideration received from transfer and
fluctuation accumulated amount of fair value formerly reckoned in other consolidated income in the current
profits and losses.
If part transfer of financial assets satisfies the demand for derecognition, apportion the integral book value of
the transferred financial assets between the derecognized parts and the parts not yet derecognized according
to each relative fair value, and reckon the balance between the sum of consideration received from transfer
and fluctuation accumulated amount of fair value formerly reckoned in other consolidated income that should
be apportioned to the derecognized parts and the apportioned aforementioned carrying amounts in the current
profits and losses.
When the Group sells financial assets adopting the mode of recourse, or endorses and transfers its financial
assets, it is necessary to ensure whether almost all the risks and rewards of ownership of the financial assets
have been transferred. If almost all the risks and rewards of ownership of the financial assets have been
transferred to the transferee, the financial assets shall be derecognized; if almost all the risks and rewards of
ownership of the financial assets are retained, the financial assets shall not be derecognized; if almost all the
risks and rewards of ownership of the financial assets are neither transferred nor retained, continue to judge
whether the company retains control over the assets, and conduct accounting treatment according to the
principles described in the preceding paragraphs.
(5) Category and measurement of financial liability
Financial liability is classified into financial liability measured by fair value and with variation reckoned into
current gains/losses and other financial liability at initially measurement. Financial liability shall be initially
recognized and measured at fair value. As for the financial liability measured by fair value and with variation
reckoned into current gains/losses, relevant trading costs are directly reckoned into current gains/losses while
other financial liability shall be reckoned into the initial amount recognized.
① the financial liability measured by fair value and with variation reckoned into current gains/losses
The conditions to be classified as trading financial liabilities and as financial liabilities designated to be
measured at fair value and whose changes are included in current profit or loss at the initial recognition are
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Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
consistent with the conditions to be classified as trading financial assets and as financial assets designated to
be measured at fair value and whose changes are included in current profit or loss at the initial recognition.
Financial liabilities measured at fair value and whose changes are included in current profit or loss are
subsequently measured at fair value, and the gain or loss arising from changes in fair value and the dividends
and interest expense related to these financial liabilities are included in current profit or loss.
② Other financial liability
It must go through the delivery of the derivative financial liabilities settled by the equity instrument to link to
the equity instruments that are not quoted in an active market and whose fair value cannot be reliably
measured, and the subsequent measurement is carried out in accordance with the cost. Other financial
liabilities are subsequently measured at amortized cost by using the effective interest method. The gain or
loss arising from derecognition or amortization is included in current profit or loss.
③Financial guarantee contract
The financial guarantee contract of a financial liability which is not designated to be measured at fair value
through profit or loss is initially recognized at fair value, and its subsequent measurement is carried out by
the higher one between the amount confirmed in accordance with the Accounting Standards for Business
Enterprises No. 13 — Contingencies after initial recognition and the balance after deducting the accumulated
amortization amount determined in accordance with the principle of Accounting Standards for Business
Enterprises No. 14—Revenue from the initial recognition amount.
(6) Termination of recognition of financial liability
The financial liability or part of it can only be terminated for recognized when all or part of the current
obligation of the financial liability has been discharged. The Group (debtor) and the creditor sign an
agreement to replace the existing financial liabilities with new financial liabilities, and if the contract terms
of the new financial liabilities are substantially different from the existing financial liabilities, terminated for
recognized the existing financial liabilities and at the same time recognize the new financial liabilities. If the
financial liability is terminated for recognized in whole or in part, the difference between the carrying
amount of the part that terminated for recognized and the consideration paid (including the transferred
non-cash assets or the assumed new financial liabilities) is included in current profits and losses.
(7) Balance-out between the financial assets and liabilities
As the Group has the legal right to balance out the financial liabilities by the net or liquidation of the
financial assets, the balance-out sum between the financial assets and liabilities is listed in the balance sheet.
In addition, the financial assets and liabilities are listed in the balance sheet without being balanced out.
(8) Derivatives and embedded derivatives
256
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
Derivatives are initially measured at fair value on the signing date of the relevant contract, and are
subsequently measured at fair value. Except for derivatives that are designated as hedging instruments and
are highly effective in hedging, the gains or losses arising from changes in fair value will be determined
based on the nature of the hedging relationship in accordance with the requirements of the hedge accounting
and be included in the period of profit and loss, other changes in fair value of derivatives are included in
current profits and losses. For a hybrid instrument that includes an embedded derivative, if it is not
designated as a financial asset or financial liability measured at fair value and whose changes are included in
current profit or loss, the embedded derivative does not have a close relationship with the main contract in
terms of economic characteristics and risks, and as with embedded derivatives, if the tools existing separately
conform to the definition of the derivatives, the embedded derivatives are split from the hybrid instruments
and are treated as separate derivative financial instruments. If it is not possible to measure the embedded
derivative separately at the time of acquisition or subsequent balance sheet date, the whole hybrid instrument
is designated as a financial asset or financial liability measured at fair value and whose changes are included
in current profits and losses.
(9) Equity instrument
The equity instrument is the contract to prove the holding of the surplus stock of the assets with the
deduction of all liabilities in the Group. The Company issues (including refinancing), repurchases, sells or
cancels equity instruments as movement of equity. No fair value change of equity instrument would be
recognized by the Company. Transaction costs associated with equity transactions are deducted from equity.
The Group's various distributions to equity instrument holders (excluding stock dividends) reduce
shareholders' equity.
11. Inventory
Inventories of the Company principally include raw materials, stock goods; work in process, self-made
semi-finished product, materials consigned to precede, low-value consumption goods, goods in transit, goods
in process, mould and contract performance costs.
Perpetual inventory system is applicable to inventories. For daily calculation, standard price is adopted for
raw materials, low-value consumption goods and stock goods. Switch-back cost of the current month is
adjusted by distribution price difference at the end of the month, the dispatched goods will share the cost
differences of inventory while in settlement the business income; and low-value consumption goods is
carried forward at once when being applied for use and the mould shall be amortized within one year after
receipt.
Inventory at period-end is valued by the Lower-of-value between the cost and net realizable value. The
provision for inventory depreciation shall be drawn from the difference between the book cost of a single
257
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
inventory item and its net realizable value, and the provision for inventory depreciation shall be recorded into
the current profit and loss.
12. Contract assets
(1) Confirmation methods and standards of contract assets
Contract assets refer to the right of the Company to receive consideration after transferring goods to
customers, and this right depends on factors other than the passage of time. If the Company sells two clearly
distinguishable commodities to a customer and has the right to receive payment because one of the
commodities has been delivered, but the payment is also dependent on the delivery of the other commodity,
the Company shall take the right to receive payment as a contract asset.
(2) Determination method and accounting treatment method of expected credit loss of contract assets
For the determination method for expected credit loss of contract assets, please refer to the above-mentioned
10. (3) Accounting treatment methods for financial instrument impairment. The Company calculates the
expected credit loss of contract assets on the balance sheet date, if the expected credit loss is greater than the
book value of provision for impairment of contract assets, the Company shall recognize the difference as an
impairment loss, debiting the "asset impairment loss" and crediting the "contract asset impairment provision".
On the contrary, the Company shall recognize the difference as an impairment gain and keep the opposite
accounting records.
If the Company actually incurs credit losses and determines that the relevant contract assets cannot be
recovered, for those approved to be written off, debit the "contract asset impairment reserve" and credit the
"contracted asset" based on the approved write-off amount. If the written-off amount is greater than the
provision for loss that has been withdrawn, the "asset impairment loss" is debited based on the difference.
13. Contract cost
(1) The method of determining the amount of assets related to the contract cost
The Company‘s assets related to contract costs include contract performance cost and contract acquisition
cost.
The contract performance cost is the cost incurred by the Company for the performance of the contract, those
that do not fall within the scope of other accounting standards and meet the following conditions at the same
time are recognized as as an asset as the contract performance cost: the cost is directly related to a current or
expected contract, including direct labor, direct materials, manufacturing expenses (or similar expenses),
costs clarified to be borne by the customer, and other costs incurred solely due to the contract; this cost
increases the Company's future resources for fulfilling the contract's performance obligations; this cost is
expected to be recovered.
258
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
Contract acquisition cost is the incremental cost incurred by the Company to obtain the contract, those that
are expected to be recovered are recognized as the contract acquisition cost as an asset; if the asset
amortization period does not exceed one year, it shall be included in the current profit and loss when it occurs.
Incremental cost refers to the cost (such as sales commission, etc.) that will not incur if the Company doesn‘t
obtain the contract. The Company‘s expenses (such as travel expenses incurred regardless of whether the
contract is obtained) incurred for obtaining the contract other than the incremental costs expected to be
recovered are included in the current profits and losses when they are incurred, except those are clarified to
be borne by the customer.
(2) Amortization of assets related to contract costs
The Company‘s assets related to contract costs are amortized on the same basis as the recognition of
commodity income related to the asset and included in the current profit and loss.
(3) Impairment of assets related to contract costs
When the Company determines the impairment loss of assets related to the contract cost, it first determines
the impairment loss of other assets related to the contract that are confirmed in accordance with other
relevant accounting standards for business enterprises; then based on the difference between the book value
of which is higher than the remaining consideration that the Company is expected to obtain due to the
transfer of the commodity related to the asset and the estimated cost of transferring the related commodity,
the excess shall be provided for impairment and recognized as an asset impairment loss.
If the depreciation factors of the previous period changed later, causing the aforementioned difference to be
higher than the book value of the asset, the original provision for asset impairment shall be reversed and
included in the current profit and loss, but the book value of the asset after the reversal shall not exceed the
book value of the asset on the reversal date under the assumption that no impairment provision is made.
14. Long-term equity investment
Long-term equity investment of the Company is mainly about investment in subsidiary, investment in
associates and investment in joint-ventures.
For long-term equity investments acquired through business combination under common control, the initial
investment cost shall be the acquirer‘s share of the carrying amount of net assets of the acquiree as of the
combination date as reflected in the consolidated financial statement of the ultimate controller. If the carrying
amount of net assets of the acquiree as of the combination date is negative, the investment cost of long-term
equity investment shall be zero. For long-term equity investment acquired through business combination not
under common control, the initial investment cost shall be the combination cost.
Excluding the long-term equity investment acquired through business combination, there is also a king of
long-term equity investment acquired through cash payment, for which the actual payment for the purchase
259
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
shall be investment cost; If Long-term equity investments are acquired by issuing equity securities, fair value
of issuing equity investment shall be investment cost; for Long-term equity investments which are invested
by investors, the agreed price in investment contract or agreement shall be investment cost; and for long-term
equity investment which is acquired through debt reorganization and non-monetary assets exchange,
regulations of relevant accounting standards shall be referred to for confirming investment cost.
The Company adopts cost method for investment in subsidiaries, makes calculation for investments in
joint-ventures and associates by equity method.
When calculated by cost method, long-term equity investment is priced according to its investment cost, and
cost of the investment is adjusted when making additional investment or writing off investment; When
calculated by equity method, current investment gains and losses represent the proportion of the net gains
and losses realized by the invested unit in current year attributable to or undertaken by the investor. When the
Company is believed to enjoy proportion of net gains and losses of invested unit, gains and losses
attributable to the Company according to its shareholding ratio is to computer out according to the
accounting policy and accounting period of the Company, on the basis of the fair value of various
recognizable assets of the invested unit as at the date of obtaining of the investment, after offset of gains and
losses arising from internal transactions with associates and joint-ventures, and finally to make confirmation
after adjustment of net profit of the invested unit. Confirmation on gains and losses from the long-term equity
investment in associates and joint-ventures held by the Company prior to the first execution day, could only
stand up with the precedent condition that debit balance of equity investment straightly amortized according
to its original remaining term has already been deducted, if the aforementioned balance relating to the
investment do exist.
In case that investor loses joint control or significant influence over investee due to disposal of part equity
interest investment, the remaining equity interest shall be calculated according to Accounting Standards for
Business Enterprise No.22-Recognition and Measurement of Financial Instrument. Difference between the
fair value of the remaining equity interest as of the date when loss of joint control or significant influence and
the carrying value is included in current gains and losses. Other comprehensive income recognized in respect
of the original equity interest investment under equity method should be treated according to the same basis
which the investee adopts to directly dispose the relevant assets or liabilities when ceasing adoption of equity
method calculation; and also switches to cost method for calculating the long-term equity investments which
entitles the Company to have conduct control over the invested units due to its additional investments; and
switches to equity method for calculating the long-term equity investments which entitles the Company to
conduct common control or significant influence, while no control over the invested units due to its
additional investments, or the long-term equity investments which entitles the Company with no control over
the invested units any longer while with common control or significant influence.
When disposing long-term equity investment, the balance between it carrying value and effective price for
260
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
obtaining shall be recorded into current investment income. When disposing long-term equity investment
which is calculated by equity method, the proportion originally recorded in owners‘ equity shall be
transferred to current investment income according to relevant ratio, except for that other movements of
owners‘ equity excluding net gains and losses of the invested units shall be recorded into owners‘ equity.
15. Investment real estate
The investment real estate of the Company includes leased houses and buildings, and is accounted value by
its cost. Cost of purchased-in investment real estate consists of payment for purchase, relevant taxes and
other expenditure which is attributable to the assets directly; while cost of self-built investment real estate is
formed with all necessary expenditures occurred before construction completion of the assets arriving at the
estimated utilization state.
Consequent measurement of investment estate shall be measured by cost method. Depreciation is provided
with average service life method pursuant to the predicted service life and net rate of salvage value. The
predicted service life and net rate of salvage value and annual depreciation are listed as follows:
Predicted rate of salvage Depreciation rate per
Category Depreciation term(Year)
value (%) annual (%)
House and buildings 30-40 years 4%-5% 2.375%-3.20%
When investment real estate turns to be used by holders, it shall switch to fixed assets or intangible assets
commencing from the date of such turning. And when self-used real estate turns to be leased out for rental or
additional capital, the fixed assets or intangible assets shall switch to investment real estate commencing
from the date of such turning. In situation of switch, the carrying value before the switch shall be deemed as
the credit value after the switch.
When investment real estate is disposed, or out of utilization forever and no economic benefit would be
predicted to obtain through the disposal, the Company shall terminate recognition of such investment real
estate. The amount of income from disposal, transfer, discarding as scrap or damage of investment real estate
after deducting the asset‘ s carrying value and relevant taxation shall be written into current gains and losses.
16.Fixed assets
Fixed assets of the Company are tangible assets that are also held for the production of goods, provision of
services, rental or management of operations, have a useful life of more than one year and have a unit value
of more than 2,000 yuan.
Their credit value is determined on the basis of the cost taken for obtaining them. Of which, cost of
purchased-in fixed assets include bidding price and import duty and relevant taxes, and other expenditure
which occurs before the fixed assets arrive at the state of predicted utilization and which could be directly
attributable to the assets; while cost of self-built fixed asset is formed with all necessary expenditures
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Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
occurred before construction completion of the assets arriving at the estimated utilization state; credit value
of the fixed assets injected by investors is determined based on the agreed value of investment contracts or
agreements, while as for the agreed value of investment contracts or agreements which is not fair, it shall
take its fair value as credit value; and for fixed assets which are leased in through finance leasing, credit
value is the lower of fair value of leased assets and present value of minimized leasing payment as at the
commencing date of leasing.
Consequent expenditure related to fixed assets consists of expenditures for repair and update reform. For
those meeting requirements for recognization of fixed assets, they would be accounted as fixed asset cost;
and for the part which is replaced, recognization of its carrying value shall cease; for those not meeting
requirements for recognization of fixed assets, they shall be accounted in current gains and losses as long as
they occur. When fixed asset is disposed, or no economic benefit would be predicted to obtain through
utilization or disposal of the asset, the Company shall terminate recognization of such fixed asset. The
amount of income from disposal, transfer, discarding as scrap or damage of fixed asset after deducting the
asset‘ s carrying value and relevant taxation shall be written into current gains and losses.
The Company withdraws depreciation for all fixed assets except for those which have been fully depreciated
while continuing to use. It adopts average service life method for withdrawing depreciation which is treated
respectively as cost or current expense of relevant assets according to purpose of use. The depreciation term,
predicted rate of salvage value and depreciation rate applied to fixed assets of the Company are as follows:
Predicted rate of salvage Depreciation rate per
No. Category Depreciation term
value year
1 House and buildings 30-40 years 4%-5% 2.375%-3.20%
2 Machinery equipment 10-14 years 4%-5% 6.786%-9.60%
3 Transport equipment 5-12 years 4%-5% 7.92%-19.20%
4 Other equipment 8-12 years 4%-5% 7.92%-12.00%
End of each year, the Company makes re-examination on predicted service life, predicted rate of salvage
value and depreciation method at each year-end. Any change will be treated as accounting estimation change.
17. Construction in progress
On the day when the construction in progress reaches the expected usable state, it will be carried forward to
fixed assets according to the estimated value based on the construction budget, cost or actual construction
cost, and depreciation will be accrued from the next month, and the difference in the original value of fixed
assets shall be adjusted after the completion of the final accounting procedures.
262
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
18. Borrowing expense
For the incurred borrowing expense that can be directly attributable to fixed assets, investment real estate,
and inventory which require more than one year of purchase, construction or production activities to reach
the intended usable or saleable state, the capitalization begins when the asset expenditure has occurred, the
borrowing expense have occurred, and the acquisition, construction or production activities necessary to
make the asset reach the intended usable or saleable state have begun; when the acquisition, construction or
production of assets that meet the capitalization conditions reaches the intended usable or saleable state, stop
the capitalization, the borrowing expense incurred thereafter are included in the current profit and loss. If an
asset that meets the capitalization conditions is abnormally interrupted during the acquisition, construction or
production process, and the interruption lasts for more than 3 months, the capitalization of borrowing
expense shall be suspended until the acquisition, construction or production activities of the asset restart.
Capitalization shall be exercised for interest expense actually occurred from special borrowings in current
period after deduction of the interest income arising from unutilized borrowing capital which is saved in
banks or deduction of investment income obtained from temporary investment; For recognization of
capitalized amount of common borrowing, it equals to the weighted average of the assets whose accumulated
expense or capital disburse is more than common borrowing times capitalization rate of occupied common
borrowing. Capitalization rate is determined according to weighted average interest rate of common
borrowing.
19. Intangible assets
The Company‘s intangible assets include land use rights, trademark rights and non-proprietary technology,
which are measured at actual cost at the time of acquisition, of which, acquired intangible assets are stated at
actual cost based on the price actually paid and related other expenditure; the actual cost of an intangible
asset invested by an investor is determined at the value agreed in the investment contract or agreement,
except where the agreed value in the contract or agreement is not fair, in which case the actual cost is
determined at fair value.
The land use rights are amortized equally over the period from the commencement date of the grant; the
remaining intangible assets are amortized equally over the shortest of the estimated useful life, the
contractual beneficial life and the effective life as prescribed by law. Amortization is charged to the cost of
the relevant asset and to current profit or loss in accordance with the object of its benefit. The estimated
useful life and amortization method for intangible assets with finite useful lives are reviewed at the end of
each year and any changes are treated as changes in accounting estimates.
20. Research and development
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Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
As for expenditure for research and development, the Company classifies it into expenditure on research
phase and development phase, based on nature of the expenditure and that whether the final intangible assets
formed by research & development is of great uncertainty. Expenditure arising during research should be
recorded in current gains and losses upon occurrence; expenditure arising during development is confirmed
as intangible assets when satisfying the following conditions:
-Completions of the intangible assets make it available for application or sell in technology;
-Equipped with plan to complete the intangible asset and apply or sell it;
-There is market for products produced with this intangible asset or the intangible asset itself;
-Have sufficient technology, financial resource and other resources to support development of the intangible
assets, and have ability to apply or sell the assets;
-Expenditure attributable to development of the intangible assets could be reliable measured.
Expenditure arising during development not satisfying the above conditions shall be recorded in current gains
and losses upon occurrence. Development expenditure which had been recorded in gains and losses in
previous period would not be recognized as assets in later period. Expenditure arising during development
phase which has been starting capitalization is listed in balance sheet as development expenditure, and
transferred to intangible assets since the project reaches at predicted utilization state.
21. Impairment of long-term assets
As at each balance sheet date, the Company has inspection on fixed assets, construction in process and
intangible assets with limited service life. When the following indications appear, assets may be impaired,
and the Company would have impairment test. As for goodwill and intangible assets which have uncertain
service life, no matter there is impairment or not, impairment test shall be conducted at the end of every year.
If it is hard to make test on recoverable amount of single asset, test is expected to make on the basis of the
assets group or assets group portfolio where such asset belongs to.
After impairment test, if the carrying value exceeds the recoverable amount of the asset, the balance is
recognized as impairment loss. As long as impairment loss of the aforementioned assets is recognized, it
couldn‘t be switched back in later accounting periods. Recoverable amount of assets refers to the higher of
fair value of assets net disposal expense and present value of predicted cash flow of the asset.
Indications for impairment are as follows:
(1) Market value of asset drops a lot in current period, the drop scope is obviously greater than the predicted
drop due to move-on of times or normal utilization;
(2) Economy, technology or law environment where enterprise operates or market where asset is located will
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Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
have significant change in current or recent periods, which brings negative influence to enterprise;
(3) Market interest rate or returning rate of other market investments have risen in current period, which
brings influence in calculating discount rate of present value of predicted future cash flow of assets, which
leads to a great drop in recoverable amount of such assets;
(4) Evidence proving that asset is obsolete and out of time or its entity has been damaged;
(5) Asset has been or will be keep aside, terminating utilization or disposed advance;
(6) Internal report of enterprise shows that economic performance of asset has been or will be lower than
prediction, such as that net cash flow created by asset or operation profit (or loss) realized by asset is greatly
lower (or higher) than the predicted amount;
(7) Other indications showing possible impairment of assets
22. Contract liability
Contract liabilities reflect the Company's obligation to transfer goods to customers for consideration received
or receivable from customers. Before the Company transfers the goods to the customer, if the customer has
paid the contract consideration or the Company has obtained the right to unconditionally receive the contract
consideration, the contract liability is recognized based on the received or receivable amount at the earlier
time point of the actual payment by the customer and the payment due.
23. Goodwill
Goodwill represents balance between equity investment cost or business combination cost under no common
control exceeding the attributable part or fair value of recognizable net assets of party invested or purchased
(obtained through business combination) as of acquisition day or purchase day.
Goodwill relating to subsidiaries is separately listed in consolidated financial statement. And goodwill
relating to associates and joint-ventures is included in carrying value of long-term equity investment.
24. Staff remuneration
Employee benefits mainly include all kinds of remuneration incurred in exchange for services rendered by
employees or compensation to the termination of employment relationship such as short-term wages,
post-employment benefits, compensation for the termination of employment relationship and other long-term
employee welfare.
Short-term remuneration includes: staff salary, bonus, allowances and subsidies, staff benefits, social
insurances like medical insurance, work-related injury insurance and maternity insurance, housing fund,
labor union funds and staff education funds, short-term paid absence of duty, short-term profit sharing
265
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
scheme, and non-monetary benefits as well as other short-term remuneration. During the accounting period
when staff provides services, the short-term remuneration actually occurred is recognized as liabilities and
shall be included in current gains and losses or related asset costs according to the beneficial items.
Retirement benefits mainly consist of basic pension insurance, unemployment insurance and early-retirement
benefits, etc. retirement benefit scheme represents the agreement reached by the Company and its employees
in respect of retirement benefits, or the rules or regulations established by the Company for providing
retirement benefits to employees. In particular, defined contribution plan means a retirement benefit plan,
pursuant to which, the Company makes fixed contribution to independent fund, upon which, and it is not
obliged to make further payment. Defined benefit plan refers to retirement benefit scheme other than defined
contribution plan.
The early retirement policy for staff and workers of the Company is the compensation for encouraging staff
and workers to accept the reduction voluntarily. The employees make applications voluntarily, the two
parties sign the compensation agreement after approved by the Company and calculate the compensation
amount according to the compensation standard passed by the staff representative conference, and the
Company confirms it as dismiss welfare and reckons it in current profits and losses. As the Company
promises to adjust the treatment for early retiring staff and workers with the increase of social basic cost of
living allowances, the discount elements will not be considered for calculating the dismiss welfare.
25.Accrual liability
If the business in connection with such contingencies as a security involving a foreign party, commercial
acceptance bill discount, pending litigation or arbitration, product quality assurance, etc. meets all of the
following conditions, the Company will confirm the aforesaid as liabilities: the obligation is an existing
obligation of the Company; performance of the obligation is likely to cause economic benefits to flow out of
the enterprise; the amount of the obligation is reliably measurable.
26. Principle of recognition of revenue and measurement method
The Company‘s sales revenue is mainly comprised of revenue from sale of goods, labor providing income
and revenue from assignment of asset use rights.
The Company has fulfilled the performance obligations in the contract, that is, revenue is recognized when
the customer obtains control of the relevant goods or services.
If the contract contains two or more performance obligations, the Company will allocate the transaction price
to each individual performance obligation according to the relative proportion of the stand-alone selling price
of the goods or services promised by each individual performance obligation on the date of the contract. The
266
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
revenue is measured according to the transaction price of each individual performance obligation.
The transaction price is the amount of consideration that the Company expects to be entitled to receive due to
the transfer of goods or services to customers, excluding payments on behalf of third parties. The transaction
price confirmed by the Company does not exceed the amount at which the cumulatively recognized revenue
will most likely not to undergo a significant switch back when the relevant uncertainty is eliminated. The
money expected to be returned to the customer will be regarded as a return liability and not included in the
transaction price. If there is a significant financing component in the contract, the Company shall determine
the transaction price based on the amount payable on the assumption that the customer pays in cash when
obtaining the control of the goods or services. The difference between the transaction price and the contract
consideration shall be amortized by the effective interest method during the contract period. On the starting
date of the contract, if the Company expects that the interval between the customer's acquisition of control of
the goods or services and the customer's payment of the price doesn‘t exceed one year, the significant
financing components in the contract shall be ruled out.
When meeting one of the following conditions, the Company is to perform its performance obligations
within a certain period of time, otherwise, it is to perform its performance obligations at a certain point in
time:
1) The customer obtains and consumes the economic benefits brought by the Company's performance at the
same time as the Company's performance;
2) Customers can control the products under construction during the performance of the Company;
3) The goods produced by the Company during the performance of the contract have irreplaceable uses, and
the Company has the right to collect payment for the accumulated performance part of the contract during the
entire contract period.
For performance obligations performed within a certain period of time, the Company recognizes revenue in
accordance with the performance progress during that period and determine the progress of performance in
accordance with the output method. When the performance progress cannot be reasonably determined, if the
cost incurred by the Company is expected to be compensated, the revenue shall be recognized according to
the amount of the cost incurred until the performance progress can be reasonably determined.
For performance obligations performed at a certain point in time, the Company recognizes revenue at the
point when the customer obtains control of the relevant goods or services. When judging whether a customer
has obtained control of goods or services, the Company will consider the following signs:
1) The Company has the current right to collect payment for the goods or services;
2) The Company has transferred the goods in kind to the customer;
3) The Company has physically transferred the goods to the customer;
4) The Company has transferred the principal risks and rewards of ownership of the goods to the customer;
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Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
5) The customer has accepted the goods or services, etc.
The Company‘s right to receive consideration for goods or services that have been transferred to customers
are presented as contractual assets, which are impaired on the basis of expected credit losses. The Company‘s
unconditional right to receive consideration from customers is shown as a account receivable. The obligation
to transfer goods or services to customers for which the Company has received consideration receivable from
them is shown as a contractual liability.
27. Government subsidy
Government subsidy of the Company include project grants, financial subsidies and job stabilization
subsidies.Of which, asset-related government subsidy are government subsidy acquired by the Company for
the acquisition or other formation of long-term assets; government subsidy related to revenue are government
subsidy other than those related to assets. If the government document does not clearly specify the subsidy
object, the Company will judge according to the above-mentioned distinguishing principle. If it is difficult to
distinguish, it will be overall classified as a government subsidy related to income.
If government subsidies are monetary assets, they are measured according to the amount actually received.
For subsidies paid on the basis of a fixed quota standard, when there is conclusive evidence at the end of the
year that it can meet the relevant conditions stipulated by the financial support policy and is expected to
receive financial support funds, they are measured according to the amount receivable. If the government
subsidy is a non-monetary asset, it shall be measured at its fair value, when the fair value cannot be obtained
reliably, it shall be measured at its nominal amount (1 yuan).
Government subsidies related to assets are recognized as deferred income. Asset-related government
subsidies that are recognized as deferred income are included in the current profit and loss in installments
according to the average life method during the useful life of the relevant assets.
If the relevant asset is sold, transferred, scrapped or damaged before the end of its useful life, the
undistributed deferred income balance shall be transferred to the current profit and loss of asset disposal.
28. Deferred Income Tax Assets and Deferred Income Tax Liabilities
A deferred tax asset and deferred tax liability shall be determined by a difference (temporary difference)
between the carrying amount of an asset or liability and its tax base. The deferred tax asset shall be
recognized for the carry forward of unused deductible losses that it is probable that future taxable profits will
be available against which the deductible losses can be utilized. For temporary difference arising from initial
recognition of goodwill, no corresponding deferred income tax liabilities will be recognized. For temporary
difference arising from initial recognition of assets and liabilities occurred in the transaction related to
non-business combination which neither affect accounting profit nor taxable income (or deductible losses),
268
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
no corresponding deferred income tax assets and deferred income tax liabilities will be recognized. As of the
balance sheet date, deferred income tax assets and deferred income tax liabilities are measured at the
effective tax rate applicable to the period when recovery of assets or settlement of liabilities occur.
The Company recognizes deferred income tax assets to the extent of future taxable income tax which is
likely to be obtained to offset deductible temporary difference, deductible losses and tax credits.
29. Lease
The Company categorizes the lease into the financial leasing and the operating leasing.
The financial leasing is the lease in which all risks and returns related to the ownership of assets are
transferred in substance. The Company as a lease holder, on the date of lease, the financial lease is
recognized as the fixed asset at lower cost of fair value of the rental asset and the NPV of minimum payment
of leasing. The minimum payment of leasing is recognized as long-term payable and the difference is
accounted into unrecognized financing expense.
The operating lease is the lease apart from the financial leasing. The Company, as a lease holder, accounts
the rents into current period by straight line method during the term of the lease. The Company, as a leaser,
accounts the rental income into current period by straight line method during the term of the lease.
30. Held-for-sale
(1)The Company classifies non-current assets or disposal groups that meet all of the following conditions as
held-for-sale: 1) according to the practice of selling this type of assets or disposal groups in a similar
transaction, the non-current assets or disposal group can be sold immediately at its current condition; 2) The
sale is likely to occur, that is, the Company has made resolution on the selling plan and obtained definite
purchase commitment, the selling is estimated to be completed within one year. Those assets whose disposal
is subject to approval from relevant authority or supervisory department under relevant requirements are
subject to that approval. Prior to the preliminary classification of non-current assets or disposal group as the
category of held-for-sale, the Company measures the carrying value of the respective assets and liabilities
within the non-current assets or disposal group under relevant accounting standards. For non-current asset or
disposal group held for sale, for which it is found that the carrying value is higher than its fair value less
disposal expense during the initial measurement or re-measurement on the balance sheet date, the carrying
value shall be deducted to the net amount of fair value less disposal expense, and the reduced amount shall be
recognized as impairment loss in profit or loss for the period, and provision of impairment of assets held for
sale shall be provided for accordingly.
(2)The non-current assets or disposal group that the Company has acquired specially for resale are classified
as held for sale on the acquisition date when they meet the condition that ―the selling is estimated to be
completed within one year‖ on the acquisition date, and are likely to satisfy other conditions of being
classified as the type of held for sale in a short-term (usually being 3 months). Non-current assets or disposal
group classified as held for sale are measured at the lower of their initial measurement amount and the net
269
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
amount after their fair value less the selling expenses based on the assumption that such non-current assets or
disposal group are not classified as held for sale at the time of initial measurement. Except for the
non-current assets or disposal group acquired in a business combination, the difference arising from
considering the net amount of such non-current assets or disposal group after their fair value less the selling
expenses as the initial measurement amount is recorded in the current profit or loss.
(3)In case of loss of control over the subsidiaries due to the sales of investment in subsidiaries, no matter
whether the Company retains part of the equity investment after selling investment in subsidiaries, the
investment in subsidiaries shall be classified as held for sale on an aggregate basis in the separate financial
statements of the parent company when the investment in subsidiaries proposed to be sold satisfies the
conditions for being classified as held for sale; and all the assets and liabilities of the subsidiary shall be
classified as held for sale in the consolidated financial statements.
(4)If the net amount of fair value of non-current assets held for sale less sales expense on subsequent balance
sheet date increases, the amount previously reduced for accounting shall be recovered and reverted from the
impairment loss recognized after the asset is classified under the category of held for sale, with the amount
reverted recorded in profit or loss for the period. Impairment loss recognized before the asset is classified
under the category of held for sale shall not be reverted.
(5)For the amount of impairment loss on assets, the carrying value of disposal group‘s goodwill shall be
offset against first, and then offset against the book value of non-current assets according to the proportion of
book value of non-current assets.
If the net amount of fair value of the disposal group held for sale on the subsequent balance sheet date less
sales expenses increases, the amount reduced for accounting in previous periods shall be restored, and shall
be reverted in the impairment loss recognized in respect of the non-current assets which are applicable to
relevant measurement provisions after classification into the category of held for sale, with the reverted
amount charged in profit or loss for the current period. The written-off carrying value of goodwill and
impairment loss of non-current assets which is recognized prior to classification into the category of held for
sale shall not be reverted.
The subsequent reversed amount in respect of the impairment loss on assets recognized in the disposal group
held for sale will increase the book value in proportion of the book value of each non-current asset (other
than goodwill) in the disposal group.
(6) The non-current assets in the non-current assets or disposal group held for sale is not depreciated or
amortized, and the debt interests and other fees in the disposal group held for sale continue to be recognized.
(7)If the non-current assets or disposal group are no longer classified as held for sale since they no longer
meet the condition of being classified as held for sale or the non-current assets are removed from the disposal
group held for sale, they will be measured at the lower of the following: 1) the amount after their book value
270
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
before they are classified as held for sale is adjusted based on the depreciation, amortization or impairment
that should have been recognized given they are not classified as held for sale; 2) the recoverable amount.
(8) The unrecognized profits or loss will be recorded in the current profits or loss when derecognizing the
non-current assets or disposal group held for sale.
31. Discontinued operation
A discontinued operation is a separately identified component of the Group that either has been disposed of
or is classified as held for sale, and satisfies one of the following conditions: (1) represents a separate major
line of business or geographical area of operations; (2) is part of a single co-ordinate plan to dispose of a
separate major line of business or geographical area of operations; and (3) is a subsidiary acquired
exclusively with a view to resale.
32. Income tax accounting
The Company accounted the income tax in a method of debit in balance sheet. The income tax expenses
include income tax in the current year and deferred income tax. The income tax associated with the events
and transactions directly included in the owners‘ equity shall be included in the owners‘ equity; and the
deferred income tax derived from business combination shall be included in the carrying amount of goodwill,
except for that above, the income tax expense shall be included in the profit or loss in the current period.
The income tax expense in the current year refers to the tax payable, which is calculated according to the tax
laws on the events and transactions incurred in the current period. The deferred income tax refers to the
difference between the carrying amount and the deferred tax assets and deferred tax liabilities at Current
Year-end recognized in the method of debit in the balance sheet.
33. Segment information
Business segment was the major reporting form of the Company, which divided into four parts:
air-conditioning, refrigerator & freezer & washing machine, small home appliance and others. The transfer
price among the segments will recognize based on the market price, common costs will allocated by income
proportion between segments except for the parts that without reasonable allocation.
34. Explanation on significant accounting estimation
The management of the Company needs to apply estimation and assumption when preparing financial
statement which will affect the application of accounting policy and amounts of assets, liabilities, income and
expense. The actual condition may differ from the estimation. Constant evaluation is conducted by the
management in respect of the key assumption involved in the estimation and judgment of uncertainties.
Effect resulting from change of accounting estimation is recognized in the period the change occurs and
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Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
future periods.
The following accounting estimation and key assumption may result in material adjustment to the book value
of assets and liabilities in future period.
(1) Inventory impairment provision
The Company's provision for impairment of inventories on the balance sheet date is the part of the net
realizable value lower than the cost of inventories. The net realizable value of the inventory of goods that are
directly used for sale, such as the goods in stock, the goods sent out, and the materials for sale, and the
low-consumption goods, shall be determined by the amount of the estimated selling price of the inventory
minus the estimated selling expenses and relevant taxes. The net realizable value of the material inventory
held for production is determined by the amount of the estimated selling price of the finished product
produced minus the estimated cost to be incurred at the time of completion, the estimated selling expenses
and relevant taxes.
(2) Accounting estimation on long-term assets impairment provision
The Company makes impairment test on fixed assets such as buildings, machine and equipment which have
impairment indication and long-term assets such as goodwill as at the balance sheet date. The recoverable
amount of relevant assets and assets group shall be the present value of the projected future cash flow which
shall be calculated with accounting estimation.
If the management amends the gross profit margin and discount rate adopted in calculation of future cash
flow of assets and assets group and the amended gross profit margin is lower than the currently adopted one
or the amended discount rate is higher than the currently adopted one, the Company needs to increase
provision of impairment provision. If the actual gross profit margin is higher (or the discount rate is lower)
than the estimation of management, the Company can not transfer back the long term assets impairment
provision provided already.
(3) Accounting estimation on realization of deferred income tax assets
Estimation on deferred income tax assets needs estimation on the taxable income and applicable tax rate for
each future year. Realization of deferred income tax assets depends on whether a company is able to obtain
sufficient taxable income in future. Change of future tax rate and switch back of temporary difference could
affect the balance of income tax expense (gains) and deferred income tax. Change of the aforesaid estimation
may result in material adjustment to deferred income tax.
(4) Usable term and residual value rate of fixed assets and intangible assets
The Company, at least at the end of each accounting year, reviews the projected usable life and residual value
rate of fixed assets and intangible assets. The projected usable life and residual value rate are determined by
the management based on the historical experiences of similar assets by reference to the estimation generally
used by the same industry with consideration on projected technical upgrade. If material change occurs to
previous estimation, the Company shall accordingly adjust the depreciation expenses and amortization
272
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
expenses for future period.
(5) Projected liabilities arising from product quality guarantee
The Company commits to repair the major spare parts of refrigerators sold through go-to-countryside
promotion activity for free for ten years. As to the maintenance expenses that may be increased arising from
such commitment, the Company has provided projected liabilities.
Taking into account the various uncertainties during the ten years, the Company considers no discount factor
of such projected liabilities. Instead, the Company reviews the parameters (probility, proportion, maintenance
expense per single set) based on the actual occurrence of maintenance expenses as of each balance sheet date.
If obvious change is found, the Company will adjust the projected liabilities according to the latest
parameters so as to reflect the best estimation.
35. Other comprehensive income
Other comprehensive income represents various gains and losses not recognized in current gains and losses
according to other accounting rules.
Other comprehensive income items shall be reported in the following two classes under other relevant
accounting rules:
(1) Other comprehensive income items that can not be reclassified into gains and losses in future accounting
periods, mainly including changes arising from re-measurement of net liabilities or net assets under defined
benefit plan and interest in investee‘s other comprehensive income which are measured under equity method
and which can not be reclassified into gains and losses in future accounting periods;
(2) Other comprehensive income items that will be reclassified into gains and losses in future accounting
periods upon satisfaction of required conditions, mainly includes the share of other comprehensive income
that is reclassified into profit and loss when the investee‘s subsequent accounting periods are accounted for in
accordance with the equity method and meet the specified conditions, the fair value changes occurred by the
debt investment that is measured at fair value and whose changes are included in other comprehensive
income, the difference between the original book value included in other comprehensive income and the fair
value when a financial asset measured at amortized cost is reclassified as a financial asset measured at fair
value and its changes are included in other comprehensive income, the loss provisions for financial assets
measured at fair value and whose changes are included in other comprehensive income, the gains or losses
generated from cash flow hedging instruments are part of effective hedging, and the differences in
conversion of foreign currency financial statements.
36. Change of significant accounting policies and accounting estimates
(1) Change of significant accounting policy
273
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
Content and reasons Approval procedure Note
In 2017, the Ministry of Finance amended the Accounting
Standards for Business Enterprises No.14- Revenue (Cai Kuai
Relevant change of the accounting policy
[2017] No.22), and the Company implemented the relevant
has been deliberated and approved by the
accounting standards in preparing its financial statements for the
41st session of 9th BOD
year of 2020 and in accordance with the relevant convergence
provisions.
Items and amounts of the statement items materially affected are as follows:
Consolidate statement Parent company’s statement
Item affected 2019-12-31 2019-12-31
2020-1-1 2020-1-1
Before Amount adjusted Before Amount adjusted
After adjustment After adjustment
adjustment adjustment
Account
received in 425,149,194.97 -425,149,194.97 147,365,864.56 -147,365,864.56
advance
Contractual
371,713,321.84 371,713,321.84 130,412,269.52 130,412,269.52
liability
Other current 16,953,595.04 16,953,595.04
53,435,873.13 53,435,873.13
liability
(2) Change of significant accounting estimates: N/A
(3) Implementation of the new revenue standard fro 2020 (for the first time) adjusts the information on the
relevant items in the financial statements at the beginning of the year of implementation
Notes to the adjustment of consolidation and parent company‘s balance sheet: in accordance with the new
revenue standards exercise on 1 Jan. 2020, reclassification of the portion of an enterprise‘s obligation to
transfer goods to a customer for consideration received or receivable from the customer to a contractual
liability, at the same time, the pending sales tax, corresponding to the contract liabilities, is also included in
items of other current liability. Found more in 36 (1) for specific adjustments.
(4) There are no retrospective adjustments to prior period data for the implementation of the new revenue
standard from 2020 (for the first time)
V. Taxation
1. Major taxes and tax rates
Tax (expenses) Tax (expenses) base Tax (expenses) rate
VAT Income from sales of goods and from processing 13%, 9%, 6%, 5%, 3%
Urban maintenance and
Turnover tax 5% or 7%
construction tax
Education surcharge Turnover tax 3%
Local education Turnover tax 2%
274
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
Tax (expenses) Tax (expenses) base Tax (expenses) rate
surcharge
Corporate income tax Taxable income 15%, 20%, 25%, 30%, 33%
Original Book value of house property×(1-30%)or
House Property Tax 1.2% or 12%
annual rent income
Land use tax Actual land area used 1 Yuan/M2 to 15 Yuan /M2
Description of taxpayers with different corporate income tax rates:
Name Income tax rate
Changhong Meiling Co., Ltd. 15%
Zhongke Meiling Cryogenic Technology Co., Ltd. 15%
Zhongshan Changhong Electric Co., Ltd. 15%
Sichuan Hongmei Intelligent Technology Co., Ltd. 15%
Mianyang Meiling Refrigeration Co., Ltd. 15%
Changhong Meiling Ridian Technology Co., Ltd. 15%
Ground Energy Heat Pump Tech. (Zhongshan) Co., Ltd. 15%
Hefei Meiling Nonferrous Metal Products Co., Ltd. 15%
Jiangxi Meiling Electric Co., Ltd. 15%
Sichuan Changhong Air Conditioning Co., Ltd. 15%
Anhui Tuoxing Technology Co., Ltd. 20%
Guangzhou Changhong Trading Co., Ltd. 20%
CH-Meiling International (Philippines) Inc. 30%
Changhong Ruba Trading Company (Private) Limited 33%
2. Preferential tax
(1) On August 17, 2020, the company obtained the high-tech enterprise certificate numbered
GR202034000222 approved by the Anhui Provincial Department of Science and Technology, Anhui
Provincial Department of Finance, and Anhui Provincial Taxation Bureau of the State Administration of
Taxation, and enjoys 15% rate for the income tax for State Hi-Tech Enterprise for three years term.
(2) On August 17, 2020, the subsidiary Zhongke Meiling Cryogenic Technology Co., Ltd. obtained the
high-tech enterprise certificate numbered GR202034000072 approved by the Anhui Provincial Department
of Science and Technology, Anhui Provincial Department of Finance, and Anhui Provincial Taxation Bureau
of the State Administration of Taxation, and enjoys 15% rate for the income tax for State Hi-Tech Enterprise
275
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
for three years term.
(3) On December 9, 2020, the subsidiary Zhongshan Changhong Electric Co., Ltd., was included in the
―Notice on Publicizing the List of the Second Batch of High-tech Enterprises to be Recognized in
Guangdong Province in 2020'' published by the Office of the National High-tech Enterprise Certification
Management Leading Group, and continues to enjoy 15% rate for the income tax for State Hi-Tech
Enterprise for three years term.
(3) The subsidiary Sichuan Hongmei Intelligent Technology Co., Ltd. has passed the qualification of
high-tech enterprise certification on 9 December 2020, and enjoys 15% rate for the income tax for State
Hi-Tech Enterprise for three years term.
(4) Subsidiary Mianyang Meiling Refrigeration Co., Ltd. pass the review of Reply [Chuan JX Industrial H
(2014) No.408] from Sichuan Commission of Information on 9 May 2014, and the enterprise belongs to the
encourage industry listed in Directories of Industrial Structure Adjustment (2011) Revised (State Law
Reform Committee No. 21 Order); which enjoys the preferential tax policy of income tax for the western
development enterprise. And file in tax bureau with 15% rate for enterprise income tax since 2014 with seven
years term.
(5) The subsidiary Guangdong Changhong Meiling Ridian Technology Co., Ltd. has passed the qualification
of high-tech enterprise certification on 2 December 2019, and enjoys 15% rate for the income tax for State
Hi-Tech Enterprise for three years term.
(6) The subsidiary Hongyuan Ground Energy Heat Pump Tech. (Zhongshan) Co., Ltd. has passed the
qualification of high-tech enterprise certification on 2 December 2019, and enjoys 15% rate for the income
tax for State Hi-Tech Enterprise for three years term.
(7) The subsidiary Hefei Meiling Nonferrous Metal Products Co., Ltd. has passed the qualification of
high-tech enterprise certification on 26 October 2018, and enjoys 15% rate for the income tax for State
Hi-Tech Enterprise for three years term.
(8) The subsidiary Jiangxi Meiling Electric Appliance Co., Ltd. has passed the qualification of high-tech
enterprise certification on 16 September 2019, and enjoys 15% rate for the income tax for State Hi-Tech
Enterprise for three years term.
(9) The subsidiary Sichuan Changhong Air-conditioner Co., Ltd., belongs to the encouraged industry in the
Industrial Structure Adjustment Guidance Catalog and enjoys the preferential taxation policy of corporate
income tax for the Western Development, and the corporate income tax is levied at a reduced tax rate of 15%,
valid until December 31, 2030.
(10) The subsidiary Anhui Tuoxing Technology Co., Ltd. is in compliance with the relevant standards for
276
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
small and medium-sized enterprises with meager profits in the Notice on the Implementation of Inclusive
Tax Relief Policies for Small and Micro Enterprises (Caishui [2019] No. 13) of the Ministry of Finance and
the State Administration of Taxation, and temporarily implements below policies: the part of annual taxable
income that does not exceed one million yuan is included in taxable income by 25% after a reduction, and
corporate income tax is paid at a tax rate of 20%; while the part of annual taxable income exceeds one
million yuan but not exceeding three million yuan is included in taxable income by 50% after a reduction,
and corporate income tax is paid at a tax rate of 20%, which is valid until December 31, 2021.
VI. Notes to the major items in the consolidated financial statements
With respect to the financial statements figures disclosed below, unless otherwise specified, ―year-beginning‖
refers to Jan. 1, 2020; ―year-end‖ refers to Dec. 31, 2020; ―Current Year‖ refers to Jan. 1 to Dec. 31, 2020;
―the last year‖ refers to Jan. 1 to Dec. 31, 2019; the currency is RMB.
1. Monetary fund
Item Balance at year-end Balance at year-begin
Cash 35,088.07 44,818.07
Bank deposit 6,100,644,898.32 4,771,094,609.77
Other Monetary fund 484,232,497.85 728,461,602.80
Interest receivable on deposit 9,874,305.74
Total 6,594,786,789.98 5,499,601,030.64
Including: total amount deposited in overseas 11,293,949.64 25,326,137.49
Other monetary fund:
Item Amount at year-end
Cash deposit 444,087,381.64
B share repurchase 33,993,171.95
Account of foreign currency for verification 5,145,493.12
Co-managed account funds 503,170.44
Taobao account 486,333.43
Union Pay online 16,947.27
Total 484,232,497.85
Cash deposit which serves as non cash and cash equivalents refers to the banking acceptance draft deposit
with a term of over three months, amounting to 107,629,498.70 yuan, the amount restricted for used in
managed account was 503,170.44 yuan, bank deposits of 51,100,000.00 yuan frozen due to litigation, China
Union Pay, Taobao account and Ten Pay are all third party payment platforms for the deposit of 150,000.00
yuan and interest receivable from deposits of 9,874,305.74 yuan, the remaining Monetary funds are treated as
cash and cash equivalents.
277
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
Pars of the goods payment denominated in foreign currency should be transferred to reviewing accounts
which may not be used temporarily. Upon approval of such review, those payments may be transferred to
general accounts. Due to the relatively short time for reviewing foreign exchange, balance of the reviewing
accounts is not limited on utilization.
2. Tradable financial assets
Item Balance at year-end Balance at year-begin
Financial assets measured at fair value and whose changes are included
47,242,339.07 7,730,268.92
in current gains/losses
Including: Derivative financial assets 47,242,339.07 7,730,268.92
Tradable financial assets refers to the RMB forward exchange fund in Current Year
3. Note receivable
(1) Category of note receivable
Item Balance at year-end Balance at year-begin
Bank acceptance 13,023,329.01 1,676,718,999.50
Trade acceptance 335,880,000.00 190,350,000.00
Total 348,903,329.01 1,867,068,999.50
Less: bad debt provision 8,481,942.30 1,903,500.00
Book value 340,421,386.71 1,865,165,499.50
(2) Notes endorsement or discount and undue on balance sheet date
Amount derecognition at Amount without
Item
year-end derecognition at year-end
Bank acceptance
Trade acceptance 478,592,805.79 257,880,000.00
Total 478,592,805.79 257,880,000.00
(3) Notes transfer to account receivable due for failure implementation by drawer at year-end
(4) By accrual of bad debt provision
Amount at year-end
Category Book balance Bad debt provision
Book value
Amount Ratio Amount Ratio
With bad debt provision
13,023,329.01 3.73% 300,000.00 2.30% 12,723,329.01
accrual on single item
Including: bank acceptance 13,023,329.01 3.73% 300,000.00 2.30% 12,723,329.01
With bad debt provision
335,880,000.00 96.27% 8,181,942.30 2.44% 327,698,057.70
accrual on portfolio
Including: trade acceptance 335,880,000.00 96.27% 8,181,942.30 2.44% 327,698,057.70
278
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
Amount at year-end
Category Book balance Bad debt provision
Book value
Amount Ratio Amount Ratio
Total 348,903,329.01 100.00% 8,481,942.30 2.43% 340,421,386.71
(Continued)
Amount at year-begin
Category Book balance Bad debt provision
Book value
Amount Ratio Amount Ratio
With bad debt provision
1,676,718,999.50 89.80% 1,676,718,999.50
accrual on single item
Including: bank acceptance 1,676,718,999.50 89.80% 1,676,718,999.50
With bad debt provision
190,350,000.00 10.20% 1,903,500.00 1.00% 188,446,500.00
accrual on portfolio
Including: trade acceptance 190,350,000.00 10.20% 1,903,500.00 1.00% 188,446,500.00
Total 1,867,068,999.50 100.00% 1,903,500.00 0.10% 1,865,165,499.50
1) Note receivable withdrawal bad debt provision on single item
Balance at year-end
Name Bad debt Provision ratio
Book balance Provision reason
provision (%)
Bank acceptance Minimal risk, holding maturity
12,723,329.01 acceptance
Bank acceptance The bill has been collected by
300,000.00 300,000.00 100.00% the bank
Total 13,023,329.01 300,000.00 — —
2) Note receivable withdrawal bad debt provision by combination
Balance at year-end
Account age
Note receivable Bad debt provision Provision ratio
Within 3 months (3 months included) 282,289,530.00 2,822,895.30 1.00%
More than 3 months and less than 6 months
(6 months included) 53,590,470.00 5,359,047.00 10.00%
Total 335,880,000.00 8,181,942.30
(5) Bad debt provision of note receivable that has been accrued, withdrawn, and reversed this year
This year, note receivable with bad debt provision accrual amount as RMB 6,578,442.30. No note
receivable that has been written off in previous years has been recovered this year.
279
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
(6) No note receivable actually written off in this year.
4. Account receivable
(1) Category of account receivable by bad debt accrual
Amount at year-end
Category Book balance Bad debt provision
Book value
Amount Ratio Amount Ratio
Account receivable that withdrawal
523,379,846.95 43.52% 25,905,935.37 4.95% 497,473,911.58
bad debt provision by single item
Including: current payment with related
397,745,724.79 33.07% 3,943,524.26 0.99% 393,802,200.53
party
Account receivable with letter of credit 72,037,362.43 5.99% 72,037,362.43
Account receivable with single minor
amount but withdrawal single item bad 53,596,759.73 4.46% 21,962,411.11 40.98% 31,634,348.62
debt provision
Account receivable withdrawal bad
679,107,003.09 56.48% 46,305,134.01 6.82% 632,801,869.08
debt provision by portfolio
Including: account receivable of
173,638,731.59 14.44% 13,008,672.00 7.49% 160,630,059.59
engineering customers
Receivables other than engineering
505,468,271.50 42.04% 33,296,462.01 6.59% 472,171,809.49
customers
Total 1,202,486,850.04 100.00% 72,211,069.38 6.01% 1,130,275,780.66
(Continued)
Amount at year-begin
Category Book balance Bad debt provision
Book value
Amount Ratio Amount Ratio
Account receivable that withdrawal
746,199,837.64 51.49% 26,519,983.66 3.55% 719,679,853.98
bad debt provision by single item
Including: current payment with related
614,612,878.93 42.41% 614,612,878.93
party
Account receivable with letter of credit 52,306,821.66 3.61% 52,306,821.66
Account receivable with single minor
amount but withdrawal single item bad 79,280,137.05 5.47% 26,519,983.66 33.45% 52,760,153.39
debt provision
Account receivable withdrawal bad
703,054,274.21 48.51% 34,772,146.53 4.95% 668,282,127.68
debt provision by portfolio
Including: account receivable of
141,637,042.88 9.77% 3,940,749.05 2.78% 137,696,293.83
engineering customers
Receivables other than engineering
561,417,231.33 38.74% 30,831,397.48 5.49% 530,585,833.85
customers
Total 1,449,254,111.85 100.00% 61,292,130.19 4.23% 1,387,961,981.66
1) Account receivable that withdrawal bad debt provision by single item
Account receivable with single minor amount but withdrawal bad debt provision singly, refers to the minor
single receivables, and withdrawal bad debt provision by combination shows no risk characteristic of the
280
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
receivables, 76 clients involved.
2) Account receivable withdrawal bad debt provision by portfolio
A. Account receivable of engineering customers
Balance at year-end
Account age Bad debt
Book balance Provision ratio (%)
provision
Within 3 months (3 months included) 67,204,732.79 0.00%
More than 3 months and less than 6 months (6
7,907,641.48 0.00%
months included)
Over 6 months and within one year (One year
45,690,126.79 0.00%
included)
Over one year - within 2 years (2 years included) 44,698,144.23 8,939,628.85 20.00%
Over 2 years - within 3 years (3 years included) 8,138,086.30 4,069,043.15 50.00%
Over 3 years
Total 173,638,731.59 13,008,672.00 —
B. Receivables other than engineering customers
Balance at year-end
Account age Bad debt
Book balance Provision ratio (%)
provision
Within 3 months (3 months included) 412,523,951.50 4,125,239.52 1.00%
More than 3 months and less than 6 months (6
39,054,407.32 3,905,440.73 10.00%
months included)
Over 6 months and within one year (One year
20,517,859.18 4,103,571.84 20.00%
included)
Over one year - within 2 years (2 years included) 19,648,475.02 9,824,237.51 50.00%
Over 2 years - within 3 years (3 years included) 11,928,030.36 9,542,424.29 80.00%
Over 3 years 1,795,548.12 1,795,548.12 100.00%
Total 505,468,271.50 33,296,462.01
(2) By account age
Account age Balance at year-end
281
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
Account age Balance at year-end
Within 3 months (3 months included) 827,575,650.32
More than 3 months and less than 6 months (6 months
114,077,060.79
included)
Over 6 months and within one year (One year
81,325,161.45
included)
Over one year - within 2 years (2 years included) 134,016,062.26
Over 2 years - within 3 years (3 years included) 32,482,491.24
Over 3 years 13,010,423.98
Total 1,202,486,850.04
(3) Bad debt provision of accounts receivable this year
Changes this year
Balance at Balance at
Category Withdrawal or Resale or
year-begin Accrual Other decreases year-end
reversal write-off
Bad debt
61,292,130.19 19,547,917.73 5,039,635.85 1,780,105.94 1,809,236.75 72,211,069.38
provision
Total 61,292,130.19 19,547,917.73 5,039,635.85 1,780,105.94 1,809,236.75 72,211,069.38
(4) Account receivable actually written-off in Current Year
Item Written-off amount
Account receivable written-off 1,780,105.94
(5) Top five receivables collected by arrears party amounting to 417,337,499.72 yuan in total, accounted for
34.71% of the receivables of Current Year-end, the bad debt provision accrual correspondingly amounting to
4,735,034.49 yuan at year-end balance.
(6) No account receivable terminated recognization due to the transfer of financial assets
(7) No assets and liability transfer Account receivable and continues to involve at year-end.
5. Receivables financing
Item Balance at year-end Balance at year-begin
Bank acceptance 1,632,388,702.83
Total 1,632,388,702.83
(1) Notes receivable already pledged that presented in receivables financing at the end of the year:
Item Amount pledged at year-end
Bank acceptance 548,295,149.14
282
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
Note: with purpose of improving the note utilization, the Company draw up bank acceptance by pledge parts
of the outstanding notes receivable to the bank. For details of the pledge of bills receivable, see Note VI. 57.
Assets with restricted ownership or use rights.
(2) Notes endorsement or discount and undue on balance sheet date listed in receivables financing at the end
of the year
Amount derecognition at Amount without
Item
year-end derecognition at year-end
Bank acceptance 957,534,680.60
Trade acceptance
Total 957,534,680.60
6. Accounts paid in advance
(1) Age of account paid in advance
Balance at year-end Balance at year-begin
Item
Amount Ratio （%） Amount Ratio （%）
Within one year 29,423,135.91 97.73% 23,665,135.72 93.65%
1-2 years 393,517.42 1.31% 945,375.38 3.74%
2-3 years 25,000.00 0.08% 331,164.45 1.31%
Over 3 years 263,720.07 0.88% 328,730.82 1.30%
Total 30,105,373.40 100.00% 25,270,406.37 100.00%
(2) Top 5 of account paid in advance in balance at year-end amounting to 15,807,170.94 yuan, accounted for
52.51% of the account.
7. Other account receivable
Item Balance at year-end Balance at year-begin
Interest receivable
9,510,208.63
Dividend receivable 661,434.48
Other account receivable
145,705,978.26 87,070,251.69
Total 145,705,978.26 97,241,894.80
7.1 Interest receivable
(1) Category of interest receivable
Item Balance at year-end Balance at year-begin
283
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
Item Balance at year-end Balance at year-begin
Interest receivable from time deposit 9,510,208.63
Total 9,510,208.63
(2) Major overdue interest: nil
7.2 Dividend receivable
(1) Category of dividend receivable
Item Balance at year-end Balance at year-begin
Huishang Bank Co., Ltd. 661,434.48
(2) Major dividends receivable with account age over 1 year: Nil
7.3 Other account receivable
(1) Category of other account receivable
Nature Book balance at year-end Book balance at year-begin
Export rebate 32,281,664.19 21,650,454.61
Cash deposit 77,754,290.83 49,470,316.18
Loans of employee‘s pretty cash 14,876,565.98 16,863,753.28
Related party not in consolidation statement 3,241,296.82 1,163,963.53
Advance money temporary 65,938.41 332,896.32
Other 18,375,974.37 2,645,856.29
Total 146,595,730.60 92,127,240.21
(2) Other account receivable bad debt reserves
First stage Second stage Third stage
Expected credit loss
Expected Expected credit loss
Bad debt provision for the whole Total
credit loss in for the whole
duration (credit
next 12 duration (no credit
impairment has
months impairment)
occurred)
Balance as at 1 Jan. 2020 5,004,988.52 52,000.00 5,056,988.52
Book balance of other account
receivable in Current Year as at — — — —
1 Jan. 2020
--Transfer to the second stage
-- Transfer to the third stage
-- Reversal to the second stage
284
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
First stage Second stage Third stage
Expected credit loss
Expected Expected credit loss
Bad debt provision for the whole Total
credit loss in for the whole
duration (credit
next 12 duration (no credit
impairment has
months impairment)
occurred)
-- Reversal to the first stage
Provision in Current Year -4,056,236.18 50,000.00 -4,006,236.18
Reversal in Current Year 22,000.00 22,000.00
Conversion in Current Year
Write off in Current Year 109,000.00 30,000.00 139,000.00
Other change
Balance as at 31 Dec. 2020 839,752.34 50,000.00 889,752.34
The write-off this year was due to the cancellation of the subsidiary Changmei Technology Co., Ltd. and
the employee reserve funds receivable are written off.
(3) By account age
Account age Balance at year-end
Within 3 months (3 months included) 91,920,859.60
More than 3 months and less than 6 months (6 months
22,540,450.31
included)
Over 6 months and within one year (One year
19,585,237.13
included)
Over one year - within 2 years (2 years included) 5,705,751.39
Over 2 years - within 3 years (3 years included) 2,756,045.96
Over 3 years 4,087,386.21
Total 146,595,730.60
(4) Top 5 other receivables collected by arrears party at balance of year-end:
Balance at
Proportion in total
year-end of
Name Balance at other receivables at
Nature Account age
year-end bad debt
year-end
provision
SAT of Hefei Economic &
Within 3
Technological Development Tax rebate 32,281,664.19 22.02%
months
Zone
Development & Reform Within 3
Cash deposit 16,400,000.00 11.19%
Bureau of Qingyuan District, months
285
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
Balance at
Proportion in total
year-end of
Name Balance at other receivables at
Nature Account age
year-end bad debt
year-end
provision
Baoding City
Office of the lading group
for construction of new Within 3
Cash deposit 8,780,849.40 5.99%
socialist countryside in months
Shunyi District
Housing and Urban-Rural
Within 3
Development Bureau in Cash deposit 3,319,800.00 2.26%
months
Anguo City
Bureau of agriculture and Within 3
Cash deposit 2,986,740.00 2.04%
rural affairs in Wuji County months
Total — 63,769,053.59 — 43.50%
(5) No other account receivable involved government subsidies at year-end.
(6) No other receivables terminated recognization due to the transfer of financial assets at year-end.
(7) No assets and liability transfer other receivables and continues to involve at year-end.
8. Inventories
(1) Classification of inventories
Amount atyear-end
Inventory price decline
Item provision/contract
Book balance Book value
performance cost
impairment provision
Raw materials 153,887,580.62 9,729,874.26 144,157,706.36
Stock commodities 1,227,162,291.35 73,930,262.61 1,153,232,028.74
Low value consumable articles 5,946,757.68 916,206.67 5,030,551.01
Goods in transit 245,061,800.18 9,702,391.49 235,359,408.69
Goods-in-process 8,737,073.41 8,737,073.41
Contract performance cost 119,758,145.49 97,462.80 119,660,682.69
Deferred expense for mould 49,177,500.53 49,177,500.53
Total 1,809,731,149.26 94,376,197.83 1,715,354,951.43
(Continued)
Amount atyear-begin
Inventory price decline
Item provision/contract
Book balance Book value
performance cost
impairment provision
Raw materials 151,663,007.21 8,222,896.79 143,440,110.42
Stock commodities 1,067,657,584.34 85,915,212.96 981,742,371.38
286
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
Amount atyear-begin
Inventory price decline
Item provision/contract
Book balance Book value
performance cost
impairment provision
Low value consumable articles 7,450,761.70 114,037.76 7,336,723.94
Goods in transit 215,898,485.10 4,872,592.90 211,025,892.20
Goods-in-process 10,181,803.47 10,181,803.47
Contract performance cost 70,738,030.16 70,738,030.16
Deferred expense for mould 36,445,257.49 36,445,257.49
Total 1,560,034,929.47 99,124,740.41 1,460,910,189.06
(2) Provision for inventory depreciation and contract performance cost impairment provision
Increase this year Decrease this year
Amount at Amount at
Item Reversal or
year-begin Accrual Other Other year-end
reselling
Raw materials 8,222,896.79 7,960,477.24 6,453,499.77 9,729,874.26
Stock
85,915,212.96 36,058,098.21 48,043,048.56 73,930,262.61
commodities
Goods in transit 4,872,592.90 11,167,555.08 6,337,756.49 9,702,391.49
Low value
consumable 114,037.76 868,562.49 66,393.58 916,206.67
articles
Contract
performance 97,462.80 97,462.80
cost
Total 99,124,740.41 56,152,155.82 60,900,698.40 94,376,197.83
(3) Accrual for inventory falling price reserves
Reasons for the reversal or
Item Specific basis for determining of net realizable value
reselling in Current Year
Cost is higher than net realizable value (The processed products are
Raw materials For production
decline)
Stock Cost is higher than net realizable value (The market price at period-end
For sale
commodities fell)
Cost is higher than net realizable value (The market price at period-end
Goods in transit For sale
fell)
Low value
consumable Cost is higher than net realizable value Already used
articles
Contract Engineering construction Cost is higher than net realizable value (The
Already used
performance cost processed products are decline)
9. Other current assets
Item Balance at year-end Balance at year-begin
Value-added tax to be deducted 181,882,278.05 43,809,823.14
Advance payment of income tax 9,506,261.78 18,010,305.85
287
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
Item Balance at year-end Balance at year-begin
Pakistan local sales tax 2,453,792.84 1,337,337.27
Contract acquisition cost 4,511,132.31
Other unamortized expenses 446,565.70
Total 198,353,464.98 63,604,031.96
288
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
10. Long-term equity investment
Changes in Current Year Balanc
Other Other e at
Balance at Additio Provisi Balance at year-en
Invested enterprise Investment profit comprehen chang Declaration of
year-begin nal Disinve on for Othe year-end d of
and loss confirmed sive es of cash dividends
investm stment impair r impair
by equity method income equit or profits
ent ment ment
adjustment y
Associated companies
1.Hefei Xingmei Assets Management Co.,
8,554,613.73 -1,728,338.74 6,826,274.99
Ltd.
2.Sichuan Zhiyijia Network Technology
45,607,507.85 205,619.66 6,649,787.97 39,163,339.54
Co., Ltd. note 1
3.Hongyuan Ground Energy Heat Tech.
23,374,940.65 -1,271,831.08 22,103,109.57
Co., Ltd. note 2
4.Sichuan Tianyou Guigu Technology
2,802,223.55 47,867.96 2,850,091.51
Co., Ltd. note 3
5.Chengdu Guigu Environmental Tech.
8,217,225.92 -2,177,219.15 6,040,006.77
Co., Ltd. note 4
6.ChanghongRuba
-194,554.26 194,554.26
ElectricCompany(Private)Ltd. note 5
7.Hefei Meiling Solar Energy Technology
1,617,928.00 1,617,928.00
Co., Ltd. note 6
Total 88,556,511.70 -3,500,527.61 194,554.26 8,267,715.97 76,982,822.38
Note 1: on 16 December 2014, the Company executed a joint venture agreement with its controlling shareholder Sichuan Changhong Electric Co., LTD, targeting to jointly establish Sichuan
Zhiyijia Network Technology Co., Ltd. On 5 January 2015, Sichuan Zhiyijia Network Technology Co., Ltd was officially incorporated with registered capital of 50 million yuan, among which,
the Company made contribution of 15 million yuan with shareholding proportion of 30% and Sichuan Changhong Electric Co., LTD made contribution of 35 million yuan with shareholding
proportion of 70%. In 2019, the Company increase capital of 29,087,040.00 yuan (of which: 20 million yuan reckoned in registered capital and 9,087,040 yuan reckoned in capital reserves) to
289
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
Zhiyijia with shareholding ratio up to 50%.
Note 2: subsidiary Sichuan Changhong Air Conditioner Co., Ltd (―Changhong Air Conditioner‖) and Hengyouyuan Technology Development Group Co., Ltd. (―Hengyouyuan‖) cooperated to
establish Hongyuan Ground Energy Heat Technology Co., Ltd. on 28 October 2015. The registered capital of the company is 50 million yuan, among which, Changhong Air Conditioner
contributed 24.5 million yuan, accounting for 49% of the registered capital, and Hengyouyuan contributed 25.5 million yuan, accounting for 51% of the registered capital.
Note 3: Sichuan Tianyou Guigu Technology Co., Ltd. was incorporated on 31 March 2015 with registered capital of 100 million yuan. Our subsidiary Changhong Air Conditioner made capital
contribution of RMB 25 million in cash, accounting for 25% of the registered capital. Chengdu Jiaodao Property Development Company made capital contribution of 20 million yuan,
accounting for 20% of the registered capital. Chengdu Southwest Jiaotong University Industry (Group) Co., Ltd made capital contribution of 20 million yuan, accounting for 20% of the
registered capital. Mianyang Investment Holding (Group) Co., Ltd made capital contribution of 5 million yuan, accounting for 5% of the registered capital. Shanghai Zhongcheng Xindaya
Financial Information Service Co., Ltd made capital contribution of 5 million yuan, accounting for 5% of the registered capital. Jiangsu Runye Investment Co., Ltd made capital contribution of
10 million yuan, accounting for 10% of the registered capital. Chengdu Dongyu Shangmao Co., Ltd made capital contribution of 15 million yuan, accounting for 15% of the registered capital. In
2016, shareholders meeting of Sichuan Tianyou Guigu Technology Co., Ltd. agreed to reduce the 50 million Yuan capital, the shareholders are reducing the capital by ratio of share-holding.
After capital reduction, subsidiary Changhong Air conditioner contributed 12.5 million Yuan, representing 25% of the registered capital.
Note 4: Chengdu Guigu Environmental Tech. Co., Ltd. was incorporated on 22 May 2013 with registered capital of 40 million yuan. Our subsidiary Changhong Air Conditioner made capital
contribution of 10 million yuan, accounting for 25% of the registered capital. Chengdu Jiaodao Property Development Company made capital contribution of 8 million yuan, accounting for 20%
of the registered capital. Chengdu Southwest Jiaotong University Industry (Group) Co., Ltd made capital contribution of 8 million yuan, accounting for 20% of the registered capital. Mianyang
Investment Holding (Group) Co., Ltd made capital contribution of 2 million yuan, accounting for 5% of the registered capital. Shanghai Zhongcheng Xindaya Financial Information Service Co.,
Ltd made capital contribution of 2 million yuan, accounting for 5% of the registered capital. Sichuan Shuye Jiachen Property Development Company made capital contribution of 4 million yuan,
accounting for 10% of the registered capital. Chengdu Dongyu Shangmao Co., Ltd made capital contribution of 6 million yuan, accounting for 15% of the registered capital
Note 5: Zhongshan Changhong, a subsidiary of the Company, entered into a supplemental joint venture agreement with RUBA Comprehensive Trading Company in 2017, pursuant to which,
290
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
both parties agreed to increase capital contribution of US$ 1,130,191.00, among which, Zhongshan Changhong subscribed to contribute US$ 452,076.00 (equivalent to 3,001,649.02 yuan on the
actual contribution date) according to the original shareholding proportion of 40% and RUBA Comprehensive Trading Company subscribed to contribute US$ 678,115.00 according to the
original shareholding proportion of 60%.
Note 6: Hefei Meiling Solar Energy Technology Co., Ltd. was incorporated on April 18, 2002, with a registered capital of RMB 10 million. Subsidiary Hefei Meiling Group Holdings Limited
invested RMB 3.1114 million, accounting for 31.114% of the registered capital; Hefei Huayi Investment Co., Ltd. invested RMB 4.972 million, accounting for 49.72% of the registered capital;
Hefei Xingtai Asset Management Co., Ltd. invested RMB 1.9166 million, accounting for 19.166% of the registered capital.
291
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
11. Other non-current financial assets
Item Balance at year-end Balance at year-begin
Sichuan Changhong Group Finance Co., Ltd. 500,000,000.00
Huishang Bank Co., Ltd. 5,000,000.00 5,000,000.00
Hongyun Fund 43,148,931.34 40,000,000.00
Total 548,148,931.34 45,000,000.00
12. Investment real estate
(1) Investment real estate measured at costs
House and
Item Land use right Total
buildings
I. Original book value
1.Balance at year-begin 107,085,322.69 3,411,848.00 110,497,170.69
2.Increase this year
3.Decrease this year 47,572,819.40 3,411,848.00 50,984,667.40
(1) Converted to self-use assets 47,572,819.40 3,411,848.00 50,984,667.40
4.Balance at year-end 59,512,503.29 59,512,503.29
II. Accumulated depreciation and
accumulated amortization
1.Balance at year-begin 13,173,242.66 980,167.90 14,153,410.56
2.Increase this year 2,468,454.19 54,092.71 2,522,546.90
(1) Provision or amortization 2,468,454.19 54,092.71 2,522,546.90
3.Decrease this year 10,017,655.56 1,034,260.61 11,051,916.17
(1) Converted to self-use assets 10,017,655.56 1,034,260.61 11,051,916.17
4.Balance at year-end 5,624,041.29 5,624,041.29
III. Impairment loss
IV. Book value
1. Ending book value 53,888,462.00 53,888,462.00
2. Opening book value 93,912,080.03 2,431,680.10 96,343,760.13
(2) No investment real estate measured by fair value at year-end.
(3) Particular about mortgage of investment property at year-end.
Accumulated Impairment
Name Original book value Book value
depreciation provision
House and buildings 5,795,017.72 2,155,236.77 3,639,780.95
(4) Investment real estate without property certification held
292
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
Reasons for failing to complete
Item Book value
property rights certificate
J04 workshop 29,587,163.79 Related property rights in procedure
J03 workshop 17,814,585.11 Related property rights in procedure
J20 air compressor station workshop 1,255,155.67 Related property rights in procedure
J18 opening and closing office 581,077.82 Related property rights in procedure
Total 49,237,982.39
13. Fixed assets
Item Book value at year-end Book value at year-begin
Fixed assets 2,315,983,923.20 2,104,697,429.76
Disposal of fixed assets 75,875,517.11 75,875,517.11
Total 2,391,859,440.31 2,180,572,946.87
13.1 Fixed assets
(1) Fixed assets
Transport
Item House and buildings Machinery equipment Otherequipment Total
equipment
I. Originalbookvalue
1.Balance atyear-begin 1,523,939,695.75 1,503,518,277.04 33,309,514.17 179,439,886.87 3,240,207,373.83
2.Increasethisyear 138,559,510.87 304,609,230.62 1,911,903.16 26,780,684.59 471,861,329.24
(1) Purchase 941,140.24 14,019,696.96 216,787.61 2,786,246.37 17,963,871.18
(2) Construction in
90,045,551.23 290,589,533.66 1,695,115.55 23,924,025.34 406,254,225.78
progresstransfer-in
(3) Transfer-in of
47,572,819.40 47,572,819.40
investmentreal estate
(4) Inventory transfer in for
70,412.88 70,412.88
own use
3.Decreasethisyear 208,015.55 79,912,618.69 820,197.03 3,035,572.71 83,976,403.98
(1) Dispose or
71,575.14 41,273,906.42 593,360.48 2,671,932.31 44,610,774.35
retirement
(2) Construction in
38,638,712.27 38,638,712.27
progresstransfer-in
(3) Decreased for
change of foreign 226,836.55 363,640.40 590,476.95
rate
(4) Temporary estimated
136,440.41 136,440.41
decrease
4.Balance atyear-end 1,662,291,191.07 1,728,214,888.97 34,401,220.30 203,184,998.75 3,628,092,299.09
II.Accumulated
depreciation
293
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
Transport
Item House and buildings Machinery equipment Otherequipment Total
equipment
1.Balance atyear-begin 287,729,327.02 760,142,789.56 17,507,896.39 68,398,095.48 1,133,778,108.45
2.Increasethisyear 63,588,552.96 148,710,758.35 2,873,612.55 16,711,492.15 231,884,416.01
（1）Accrual 53,570,897.40 148,710,758.35 2,873,612.55 16,711,492.15 221,866,760.45
(2) Transfer-in of
10,017,655.56 10,017,655.56
investmentreal estate
3.Decreasethisyear 4,344.20 52,547,247.62 616,205.98 2,404,805.09 55,572,602.89
(1) Dispose or
4,344.20 37,870,248.65 519,386.51 2,266,949.45 40,660,928.81
retirement
(2) Construction in
14,676,998.97 14,676,998.97
progresstransfer-in
(3) Decreased for
change of foreign 96,819.47 137,855.64 234,675.11
rate
4.Balance atyear-end 351,313,535.78 856,306,300.29 19,765,302.96 82,704,782.54 1,310,089,921.57
III.Impairment loss
1.Balance atyear-begin 1,584,226.14 147,609.48 1,731,835.62
2.Increasethisyear 445,081.08 445,081.08
3.Decreasethisyear 151,467.52 6,994.86 158,462.38
(1) Dispose or
151,467.52 6,994.86 158,462.38
retirement
(2) Construction in
progresstransfer-in
4.Balance atyear-end 1,877,839.70 140,614.62 2,018,454.32
IV Bookvalue
1.Ending bookvalue 1,310,977,655.29 870,030,748.98 14,635,917.34 120,339,601.59 2,315,983,923.20
2.Opening bookvalue 1,236,210,368.73 741,791,261.34 15,801,617.78 110,894,181.91 2,104,697,429.76
The new fixed assets in this year mainly due to the 406,254,225.78 yuan transfer from construction in
process; decrease of the fixed assets in Current Year mainly including assets dispose for retirement.
(2) No fixed assets temporary idle at year-end.
(3) Fixed assets for collateral at year-end
Accumulated Impairment
Name Original book value Book value
depreciation provision
House and buildings 473,274,720.00 109,485,841.31 363,788,878.69
(4) Fixed assets leased through financing lease at year-end
Accumulated Impairment
Item Original book value Book value
depreciation provision
294
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
Machinery
2,976,714.26 926,319.31 2,050,394.95
equipment
(5) Fixed assets leased through operating lease at year-end
Accumulated Impairment
Item Original book value Book value
depreciation provision
House and buildings 34,780,063.29 7,696,982.80 27,083,080.49
Machinery
36,925,786.94 9,027,584.47 27,898,202.47
equipment
Other equipment 3,014,597.05 1,096,744.33 1,917,852.72
Total 74,720,447.28 17,821,311.60 56,899,135.68
(6) Fixed assets without property certificate
Reason of not complete
Item Book value
the property certificate
Related property rights in
Testing and experiment center building 39,938,274.11
procedure
J07 electrical workshop Related property rights in
34,847,989.57
procedure
Related property rights in
J02 workshop 31,288,308.44
procedure
Related property rights in
J01 workshop 29,000,207.38
procedure
II section canteen of living area Related property rights in
21,439,108.75
procedure
Related property rights in
J05 evaporator and condenser workshop 23,156,397.31
procedure
Related property rights in
J06 central air-conditioner workshop 17,623,844.42
procedure
Related property rights in
J50 finished product warehouse 16,641,081.35
procedure
Related property rights in
J51 finished product warehouse 16,105,955.96
procedure
Related property rights in
J53 finished product warehouse 12,377,700.31
procedure
Related property rights in
J54 finished product warehouse 11,511,224.56
procedure
Related property rights in
J52 finished product warehouse 11,490,933.89
procedure
Related property rights in
J55 finished product warehouse 10,544,342.51
procedure
Related property rights in
J56 finished product warehouse 10,544,342.51
procedure
4# makeshift shelter (dormitory building transfer to capital) Related property rights in
4,702,860.71
procedure
Related property rights in
J09 raw material warehouse 6,279,480.18
procedure
295
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
Reason of not complete
Item Book value
the property certificate
Related property rights in
J10 raw material warehouse 4,905,671.26
procedure
Related property rights in
J11 raw material warehouse 4,818,190.24
procedure
Related property rights in
J08 packing materials warehouse 4,565,362.87
procedure
Freezer subsidiary station Related property rights in
3,071,376.35
procedure
Hot water room for living area Related property rights in
2,399,105.77
procedure
J15 house of refrigerant forklift Related property rights in
1,325,594.28
procedure
J17 chemical storage Related property rights in
1,301,827.80
procedure
Related property rights in
Circulating water pump room/equipment room 821,466.40
procedure
J16 chemical storage Related property rights in
1,190,400.19
procedure
Freezer salvage station Related property rights in
244,333.89
procedure
J19 main guard room Related property rights in
327,222.08
procedure
Freezer- 7# Workshop inspection room Related property rights in
190,564.28
procedure
Related property rights in
J19A guard room 206,667.08
procedure
Related property rights in
J19D guard room 151,135.58
procedure
Related property rights in
J19E guard room 151,135.58
procedure
Total 323,162,105.61
(7) No fixed assets held for sale at year-end
13.2 Disposal of fixed assets
Amount at Amount at Reasons for disposal
Item
year-end year-begin transferred
Relocation for land
Relevant assets disposal for reserved lands 75,875,517.11 75,875,517.11
reserve
Pursuant to the urban planning requirements of the People‘s Government of Hefei city, Hefei Land
Reserve Center plans to purchase and store the land use right of an integrated economic development
zone of the Company located at Longgang of Hefei with an area of 103,978.9 sq.m. (Approximately
155.9684 mu, Land Use Right Certificate No.: Dong Guo Yong (2004) Zi No. 0200, the stated use of
the land is for industrial purpose). The estimated consideration for purchasing and storage is
RMB74.48 million. The land is mainly used for the Company‘s warehouse, product finishing
296
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
workshop and the factory of Zhongke Meiling. Pursuant to the purchasing and storage requirements of
land use right, the land will be purchased and stored with vacant possession. In April 2013, the
Company completed the relocation of occupants of the premises, and the net fixed assets in relation to
the land will transfer as disposal, accounting treatment will be conduct in line with relevant rules upon
receiving of the relocation compensation.
Pursuant to the urban planning requirements of Hefei Municipal Government and the Government of
Feidong county, the land reserve center of Feidong county will purchase and store the land use right of
an economic development zone located at Feidong county, Hefei city, which is owned by the
Company‘s subordinate companies, Equator Electric and Equator Home Appliance, respectively, with
an area of 19,245.09 sq.m. (Approximately 28.87 mu, Land Use Right Certificate No.: Dong Guo
Yong (2008) No. 0366, the stated use of the land is for industrial purpose) and an area of 46,161.9
sq.m. (Approximately 69.24 mu, Land Use Right Certificate No.: Dong Guo Yong (2008) No. 0367,
the stated use of the land is for industrial purpose). The total consideration for purchasing and storage
is approximately 36 million yuan, of which the consideration for the land use right owned by Equator
Electric and Equator Home Appliance is approximately 10.59 million yuan and 25.41 million yuan,
respectively. The Company has completed the relocation of occupants of the premises, and the net
fixed assets in relation to the land will transfer as disposal, accounting treatment will be conduct in
line with relevant rules upon receiving of the relocation compensation.
No impairment of relevant assets disposal for reserved lands at year-end.
14. Construction in progress
Item Balance at year-end Balance at year-begin
Construction in progress 60,775,088.96 252,494,792.31
Total 60,775,088.96 252,494,792.31
14.1 Construction in progress
(1) Details of construction in progress
Amount atyear-end Amount atyear-begin
Impai Impair
Item rment ment
Bookbalance Bookvalue Bookbalance Bookvalue
provis provisi
ion on
Overseas product
upgrade supporting box
shell line, door shell line 9,837,906.27 9,837,906.27
and some old product
competitiveness
297
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
Amount atyear-end Amount atyear-begin
Impai Impair
Item rment ment
Bookbalance Bookvalue Bookbalance Bookvalue
provis provisi
ion on
improvement projects
Technical transformation
project of Zhongshan 6,926,902.64 6,926,902.64 2,670,888.52 2,670,888.52
Changhong
Jiangxi Meiling –
construction of the
production line for
4,049,896.54 4,049,896.54 434,062.08 434,062.08
producing one million
energy-saving smart
refrigeration annually
Meiling Living Area
Apartment Renovation 3,587,155.98 3,587,155.98
Project
Construction of washing
3,097,203.54 3,097,203.54 72,019,665.48 72,019,665.48
machine plant
Changhong Air
Conditioner- relocation
2,942,756.39 2,942,756.39 115,113,691.81 115,113,691.81
of production base and
upgrading & expansion
New overseas case 2,404,757.10 2,404,757.10
molding line project
Capacity enlargement
and technology
improvement project for 1,724,400.82 1,724,400.82 6,848,640.93 6,848,640.93
Air-conditioner
Company
Project of the application
of MES system during 1,670,775.59 1,670,775.59 7,259,356.79 7,259,356.79
manufacturing
Construction of
laboratory 1,623,019.14 1,623,019.14 2,283,246.03 2,283,246.03
(inspection center)
Front-end expansion
project of Hefei base
with an annual output of 1,304,336.29 1,304,336.29
10 million refrigerator
cabinets
Production efficiency
improvement project of
the Line C for the 904,741.38 904,741.38 1,327,155.18 1,327,155.18
overseas Refrigerator
Manufacture Company
Overseas inflated
evaporator products
685,133.49 685,133.49
transferred to Jiangxi
base production project
Equipment to be
386,124.34 386,124.34 16,790,792.47 16,790,792.47
installed
298
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
Amount atyear-end Amount atyear-begin
Impai Impair
Item rment ment
Bookbalance Bookvalue Bookbalance Bookvalue
provis provisi
ion on
Construction of
4,441,461.82 4,441,461.82
intelligent manufacturing
Line modification for
1,769,230.77 1,769,230.77
R290
Upgrade project for the
production line of
666,500.00 666,500.00
Mianyang Meiling
Intelligent Refrigerator
Other petty projects 19,629,979.45 19,629,979.45 20,870,100.43 20,870,100.43
Total 60,775,088.96 60,775,088.96 252,494,792.31 252,494,792.31
(2) Changes in significant construction in progress
Transfer to
Increase in
Book balance fixed assets in Other decrease Book balance Source of
Projects Current
at period-begin at year-end funds
Year Current Year
Changhong Air
Conditioner-
relocation of Self-rais
115,113,691.81 25,772,031.69 137,942,967.11 2,942,756.39
production base ed
and upgrading &
expansion
Construction of
Self-rais
washing machine 72,019,665.48 68,014,540.32 134,714,463.33 2,222,538.93 3,097,203.54
ed/ Raise
plant
Construction of
laboratory
2,283,246.03 6,953,047.49 7,613,274.38 1,623,019.14 Raise
(inspection center
)
(Continued)
including: Interest
Proportion of Accumulated interest capitaliza
Budget (in 10
project Progres amount of capitalized tion rate
Projects thousand
investment in s interest amount of of
Yuan)
budget capitalization Current Current
Year Year
Changhong Air
Conditioner- relocation of
production base and 84,791.01 87.88% 99% 2,570,143.02
upgrading & expansion
Construction of washing
37,121.00 98.59% 99%
machine plant
Construction of laboratory
10,748.00 85.96% 98%
(inspection center)
299
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
15. Intangible assets
(1) Intangible assets
Trademark Non-patent
Item Land use right Other Total
special right technology
I. Original book
value
1.Balance at
866,310,249.56 283,292,439.34 417,638,699.74 14,698,878.33 1,581,940,266.97
year-begin
2.Increase this
3,414,048.01 115,344,850.94 47,045,239.32 165,804,138.27
year
(1) Purchase 2,200.01 2,200.01
(2) Internal
115,289,623.59 47,045,239.32 162,334,862.91
research
(3) Transfer-in of
investment real 3,411,848.00 3,411,848.00
estate
（4）Other 55,227.35 55,227.35
3.Decrease this
67,625.33 67,625.33
year
(1) Disposal
（ 2 ） Other
67,625.33 67,625.33
decreases
4.Balance at
869,724,297.57 283,292,439.34 532,983,550.68 61,676,492.32 1,747,676,779.91
year-end
II. Accumulated
amortization
1.Balance at
160,546,271.68 282,607,964.69 194,299,345.34 2,423,169.67 639,876,751.38
year-begin
2.Increase this
19,435,789.18 684,474.65 113,864,885.83 6,046,283.44 140,031,433.10
year
（1）Accrual 18,401,528.57 684,474.65 113,864,885.83 6,046,283.44 138,997,172.49
(2) Transfer-in of
investment real 1,034,260.61 1,034,260.61
estate
3.Decrease this
12,397.98 12,397.98
year
(1) Disposal
（ 2 ） Other
12,397.98 12,397.98
decreases
4.Balance at
179,982,060.86 283,292,439.34 308,164,231.17 8,457,055.13 779,895,786.50
year-end
III. Impairment
loss
1.Balance at
4,306,556.42 4,508,495.33 8,815,051.75
year-begin
2.Increase this
22,114,421.01 22,114,421.01
year
300
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
Trademark Non-patent
Item Land use right Other Total
special right technology
3.Decrease this
year
4.Balance at
26,420,977.43 4,508,495.33 30,929,472.76
year-end
IV. Book value
1. Ending book
689,742,236.71 198,398,342.08 48,710,941.86 936,851,520.65
value
2. Opening book
705,763,977.88 684,474.65 219,032,797.98 7,767,213.33 933,248,463.84
value
The intangible assets resulted from internal research takes 8.46% of the balance of intangible assets at
year-end
(2) No land use right without property certification done at year-end
(3) Up to end of the 2020, mortgage of intangible assets is as follows:
Name Property certificate serials Area (M2) Net book value Note
Land use
HGYJCZi No.: 0121 27,120.22 17,683,738.34
right
Wan (2019) Property right of Hefei No.:
Land use 1148244/1148249/1148243/1148240/1148248/11482
477,550.03 239,711,530.25
right 46/1148241/1148238/1149101/1148242/1148245/11
48239/1148237/1148250/1148247/1149102
Land use Wan (2019) Property right of Feixi County No.:
33,383.10 13,536,059.81
right 0061435/0061445
Wan (2019) Property right of Feixi County No.:
Land use
0061456/0061447/0061438/0061440/0061452/0061 82,850.51 18,636,007.39
right
450/0061430/0061657
Total 620,903.86 289,567,335.79
16. Development expense
Increase this year Decrease this year
Balance at Internal Included in Balance at
Item Confirmed as
year-begin development Oth current profits Oth year-end
er intangible assets er
expenditure and losses
Technology
development 39,987,914.98 84,043,285.29 4,311,767.99 91,721,700.49 27,997,731.79
for Air-conditioner
Technology
development 61,090,744.59 58,674,546.89 4,121,419.29 70,613,162.42 45,030,709.77
for refrigerator
Total 101,078,659.57 142,717,832.18 8,433,187.28 162,334,862.91 73,028,441.56
301
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
17. Goodwill
(1) Original value of goodwill
Increase this year Decrease this year
Formatio Formatio
Invested enterprise Balance at n from n from Balance at
year-begin Other Other year-end
enterprise enterprise
merger merger
Hefei Meiling Group Holdings
3,553,367.77 3,553,367.77
Limited
Total 3,553,367.77 3,553,367.77
(2) Impairment loss of goodwill
Balance at Increase this year Decrease this year Balance at
Invested enterprise
year-begin Accrual Other Accrual Other year-end
Hefei Meiling Group
3,553,367.77 3,553,367.77
Holdings Limited
Total 3,553,367.77 3,553,367.77
Note: The Company‘s goodwill has been fully accrued for impairment reserves at year-end.
18. Deferred income tax assets
(1) Deferred income tax assets without the offset
Balance at year-end Balance at year-begin
Deductible Deferred Deductible Deferred
Item
temporary income tax temporary income tax
difference assets difference assets
Deferred income tax assets recognized
122,853,362.96 18,427,787.28 65,074,900.25 9,761,235.04
from assets impairment
Deferred income tax assets recognized
55,035,910.31 8,255,386.55 158,742,319.21 23,811,347.88
from accrual liability
Deferred income tax assets recognized
13,326,014.64 1,998,902.20 16,996,022.45 2,549,403.37
from Dismission welfare
Deferred income tax assets recognized
107,392,156.36 16,108,823.46 109,766,307.31 16,464,946.10
from deferred income
Deferred income tax assets recognized from
545,833,222.08 81,874,983.31 295,681,201.10 44,352,180.17
ir-reparable losses
302
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
Balance at year-end Balance at year-begin
Deductible Deferred Deductible Deferred
Item
temporary income tax temporary income tax
difference assets difference assets
Accrued income tax assets 3,467,314.27 520,097.14 3,427,103.89 514,065.58
Total 847,907,980.62 127,185,979.94 649,687,854.21 97,453,178.14
The Company‘s long-term equity investment impairment provisions are the investments in its
subsidiarie Meiling Candy Washing Machine Co., Ltd., expected to be cancelled in 2021, and the
Company also confirmed deferred income tax assets while confirming the impairment provisions. The
subsidiaries have unrecovered losses, at the consolidation level, the deferred income tax assets
recognized in the Company‘s long-term equity investment impairment provisions are adjusted to be
the deferred income tax assets generated from the recoverable losses.
(2) Deferred income tax liabilities without the offset
Balance at year-end Balance at year-begin
Item Taxable Deferred Taxable Deferred
temporary income tax temporary income tax
differences liability differences liability
Recognized by fixed assets depreciation 29,817,828.77 4,472,674.32 36,760,223.60 5,514,033.54
Recognized by changes in fair value 40,686,053.41 6,102,908.01 4,951,504.00 742,725.60
Total 70,503,882.18 10,575,582.33 41,711,727.60 6,256,759.14
(3) Details of unrecognized deferred income tax assets
Item Balance at year-end Balance at year-begin
Deductible temporary difference 110,167,308.91 148,160,001.57
Deductible loss 880,692,110.28 721,832,411.79
Total 990,859,419.19 869,992,413.36
19. Short-term loans
Category Balance at year-end Balance at year-begin
Loan in pledge 100,000,000.00 147,438,160.00
Guaranteed loan 66,180,000.00 46,794,941.14
Loan in credit 904,237,500.00 909,757,944.82
Bill financing 257,880,000.00
Interest payable 7,911,550.55
Total 1,336,209,050.55 1,103,991,045.96
303
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
Short-term loans at Current Year-end:
1) The Company entered into a Cross-border financing loan business contract with Hefei Luyang Branch of CCB with
12 months in term. Term of borrowing is from 10 March 2020 to 10 March 2021. Borrowing rate of 3.08%, the loan
amount is 300,000,000.00 Yuan.
2) The Company entered into a Cross-border direct loan financing contract with Macau Branch of CGB with 12 months
in term. Term of borrowing is from 19 March 2020 to 19 March 2021. Borrowing rate of 2.95%, the loan amount is
50,000,000.00 Yuan.
3) The Company entered into a Liquidity Loan Contract with Hefei Economic and Technological Development Zone
Branch of BOC with 366 days in term. Term of borrowing is from 6 Jan. 2020 to 6 Jan. 2021. Fixed annual interest rate
of 3.915%, the loan amount is 30,000,000.00 Yuan.
4) The Company entered into a Liquidity Loan Contract with Hefei Branch of China Postal Savings Bank Co., Ltd.
with 12 months in term. Term of borrowing is from 23 April 2020 to 22 April 2021. Borrowing rate of 3.915%, the loan
amount is 28,000,000.00 Yuan.
5) The Company entered into a Liquidity Loan Contract with Hefei Branch of SPD Bank with 182 days in term. Term
of borrowing is from 10 Oct. 2020 to 10 April 2021. Fixed annual interest rate of 3.4%, the loan amount is
25,000,000.00 Yuan.
6) The Company entered into a Loan Contract with Hefei Luyang Branch of Hangzhou Bank Co., Ltd. with 183 days in
term. Term of borrowing is from 24 August 2020 to 23 Feb. 2021. Fixed annual interest rate of 3.45%, the loan amount
is 20,000,000.00 Yuan.
7) The Company entered into a Loan Contract with Hefei Branch of Ping An Bank Co., Ltd. with 364 days in term.
Term of borrowing is from 14 Dec. 2020 to 13 Dec. 2021. Fixed annual interest rate of 3.35%, the loan amount is
10,000,000.00 Yuan.
8) The Company entered into a Domestic L/C Opening Contract with Hefei Changdong Road Branch of ICBC with 178
days in term. Term of borrowing is from 7 Aug. 2020 to 1 Jan. 2021. Fixed annual interest rate of 2.52%, the loan
amount is 20,000,000.00 Yuan.
9) The Company entered into a Agreement for Issuing Letter of Credit Business with Hefei Branch of SPD Bank with
185 days in term. Term of borrowing is from 7 Aug. 2020 to 18 Feb. 2021. Fixed annual interest rate of 3.1%, the loan
amount is 10,000,000.00 Yuan.
10) The Company entered into a Forfaiting Business Contract with Feixi Branch of Jiujiang Bank Co., Ltd. with 365
304
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
days in term. Term of borrowing is from 16 April 2020 to 16 April 2021. Fixed annual interest rate of 2.825%, the loan
amount is 50,000,000.00 Yuan.
11) The Company entered into a Contract on the Non-Recourse Transfer of Seller‘s Bonds under Domestic Letter of
Credit (Domestic Forfaiting Business) with Hefei Branch of China Everbright Bank Co., Ltd. Term of borrowing is
from 12 June 2020 to 4 June 2021. Borrowing rate of 2.50%, the loan amount is 50,000,000.00 Yuan.
12) The Company entered into a Forfaiting Business Contract with Hefei Shouchun Branch of BCM with 360 days in
term. Term of borrowing is from 29 Sept. 2020 to 24 Sept. 2021. Fixed annual interest rate of 3%, the loan amount is
200,000,000.00 Yuan.
13) Subsidiary - Changhong Ruba Trading Company (Private) Limited entered into a Loan Agreement with Karachi
Branch of ICBC, with the loan of 400,000,000.00 rupees in December 2020. Term of borrowing is from 17 December
2020 to 5 November 2021. Borrowing rate of 8.2%.
14) The Company entered into a Loan Contract with China Merchants Bank Co., Ltd. Term of borrowing is from 21
April 2020 to 9 April 2021. Borrowing rate of 0.65%, the loan amount is EUR 9,500,000.00.
15) Subsidiary - Hefei Meiling Nonferrous Metal Products Co., Ltd. entered into a Small business loan contract with
ICBC through the guarantee under Changhong Meiling. The principal of the loan is 10,000,000.00 yuan, term of
borrowing is from 27 March 2020 to 5 March 2021, and the interest rate is 4.05%.
16) The Company entered into a Forfaiting Business Contract with Anhui Branch of Bank of Communication, applying
a short-term loan of 100,000,000.00 yuan with bill pledge method. Term of borrowing is from 6 March 2020 to 1
March 2021. Borrowing rate of 3.00%.
17) Subsidiary - Zhongke Meiling Cryogenic Technology Co., Ltd. entered into a Loans of Working Capital with Anhui
Branch of Bank of Communication, term of borrowing is is from 28 Feb. 2020 to 28 Feb. 2021, Fixed interest rate of
2.4%, the loan amount is 20,000,000.00 Yuan.
18) Subsidiary - Zhongke Meiling Cryogenic Technology Co., Ltd. entered into a RMB Working Capital Loan Contract
with Feixi Branch of CCB, term of borrowing is from 13 March 2020 to 12 March 2021, Fixed interest rate of 2.05%,
the loan amount is 30,000,000.00 Yuan.
19) Subsidiary - Zhongke Meiling Cryogenic Technology Co., Ltd. entered into a RMB Working Capital Loan Contract
with Hefei Changjiang East Road Branch of ICBC, term of borrowing is from 18 March 2020 to 15 March 2021, Fixed
interest rate of 3.05%, the loan amount is 5,000,000.00 Yuan.
20) Subsidiary - Zhongke Meiling Cryogenic Technology Co., Ltd. entered into a Contract for Loans of Working
305
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
Capital with Hefei Branch of Industrial Bank, term of borrowing is from 17 March 2020 to 16 March 2021, Fixed
interest rate of 3.05%, the loan amount is 9,900,000.00 Yuan.
21) Subsidiary - Zhongke Meiling Cryogenic Technology Co., Ltd. entered into a Contract for Loans of Working
Capital with Hefei Branch of BOC, term of borrowing is from 25 November 2020 to 25 November 2021, Fixed interest
rate of 3.3%, the loan amount is 10,000,000.00 Yuan.
20. Tradable financial liability
Name Balance at year-end Balance at year-begin
Tradable financial liability 4,584,076.51 1,081,534.93
Including: Derivative financial liability 4,584,076.51 1,081,534.93
21. Note payable
Item Balance at year-end Balance at year-begin
Bank acceptance 4,232,731,220.17 3,298,019,669.51
Trade acceptance 206,876,762.17 192,251,812.89
Total 4,439,607,982.34 3,490,271,482.40
22. Account payable
(1) Account payable
Item Amount at year-end Amount at year-begin
Total 2,851,999,684.30 2,343,116,374.58
Including: Amount aged over 1 year 74,369,337.19 76,194,618.91
(2) No major account payable with over one year book age at year-end.
23. Contract liabilities
Contract liabilities
Item Balance at year-end Balance at year-begin
Total 522,550,891.28 371,713,321.84
Including: Amount aged over 1 year 91,437,631.00 70,280,613.82
24. Wages payable
306
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
(1) Category
Balance at Balance at
Item Increase this year Decrease this year
year-begin year-end
Short-term compensation 177,402,906.03 1,444,772,071.51 1,359,316,674.08 262,858,303.46
After-service welfare- defined
7,453,793.72 79,821,345.13 63,624,847.89 23,650,290.96
contribution plans
Dismiss welfare 11,650,474.93 4,925,212.81 12,762,506.11 3,813,181.63
Total 196,507,174.68 1,529,518,629.45 1,435,704,028.08 290,321,776.05
(2) Short-term compensation
Balance at Balance at
Item Increase this year Decrease this year
year-begin year-end
Wages, bonuses, allowances and
170,288,735.22 1,291,436,992.79 1,215,594,957.72 246,130,770.29
subsidies
Welfare for workers and staff 639,308.36 39,019,498.44 38,502,660.57 1,156,146.23
Social insurance 1,770,245.68 48,792,664.03 40,368,795.87 10,194,113.84
Including: Medical insurance 1,617,788.73 45,094,056.52 37,220,066.00 9,491,779.25
Work injury insurance 63,191.51 1,533,453.24 1,134,951.47 461,693.28
Maternity insurance 89,265.44 2,165,154.27 2,013,778.40 240,641.31
Housing accumulation fund 3,586,116.49 61,977,189.92 60,663,252.42 4,900,053.99
Labor union expenditure and
1,118,500.28 3,545,726.33 4,187,007.50 477,219.11
personnel education expense
Total 177,402,906.03 1,444,772,071.51 1,359,316,674.08 262,858,303.46
(3) Defined contribution plans
Item Balance at Increase this year Decrease this year Balance at
year-begin year-end
Basic endowment insurance 5,213,876.36 75,966,500.88 60,065,240.57 21,115,136.67
Unemployment insurance 2,239,917.36 3,854,844.25 3,559,607.32 2,535,154.29
Total 7,453,793.72 79,821,345.13 63,624,847.89 23,650,290.96
25. Tax payable
Item Balance at year-end Balance at year-begin
Value-added tax 41,769,712.31 31,073,647.86
Enterprise income tax 9,941,386.84 2,100,004.27
307
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
Item Balance at year-end Balance at year-begin
Individual income tax 2,781,283.48 3,080,366.29
Urban maintenance and construction
4,056,939.25 3,279,877.94
tax
Real estate tax 6,370,190.14 6,023,111.75
Land use tax 2,701,128.78 2,757,210.52
Educational surtax 2,977,254.61 2,389,535.13
Stamp tax 2,213,950.91 3,033,620.58
Construction fund of Water
643,321.87 759,372.01
Conservancy Projects
Treatment fund for abandon electrics
13,835,511.00 12,489,459.00
& electronics
Other 2,391,754.71 1,572,186.31
Total 89,682,433.90 68,558,391.66
26. Other account payable
Item Balance at year-end Balance at year-begin
Interest payable
12,340,385.61
Dividend payable
4,466,628.25 3,579,491.94
Other account payable
720,235,058.47 673,557,725.66
Total 724,701,686.72 689,477,603.21
26.1 Interest payable
(1) Category
Item Balance at year-end Balance at year-begin
Interest on long-term borrowings for repayment of
principal of installment maturity 466,340.02
Interest of short-term loans
11,874,045.59
Total 12,340,385.61
(2) No significant overdue and unpaid interest at year-end.
26.2 Dividends payable
308
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
Item Balance at year-end Balance at year-begin
China Life Insurance (Group) Company 263,813.22 239,221.62
China Life Insurance Group Co., Ltd. 395,719.83 358,832.43
BOC- Fullgoal Tianyi Securities Investment Fund 153,697.50 153,697.50
Hefei Branch of BOC 329,766.50 299,027.00
Hefei collective industry association 329,765.99 299,026.54
Entrust Investment Wuhu of Provincial ABC 263,813.22 239,221.62
Other units 2,730,051.99 1,990,465.23
Total 4,466,628.25 3,579,491.94
26.3 Other account payable
(1) Other account payable by nature
Nature Balance at year-end Balance at year-begin
1.Accrued expenses (expenses occurred without reimbursed) 387,297,440.24 487,992,668.34
2. Receivables received temporary and deducted temporary 30,995,522.33 14,950,208.02
3.Deposit, margin 163,264,455.70 114,946,522.03
4.Not the come-and-go with related parties in statement scope 126,828,746.47 14,101,588.30
5. Other 11,848,893.73 41,566,738.97
Total 720,235,058.47 673,557,725.66
(2) At end of Current Year, the major other account payable with account age over one year mainly
refers to the sale of margin.
27. Non-current liability due within one year
(1) Classification of non-current liability due within one year
Item Balance at year-end Balance at year-begin
Long-term loan principal and interest due within one year 407,141,888.08
Long term account payable due within one year 683,262.66 1,708,193.90
Total 407,825,150.74 1,708,193.90
28. Other current liabilities
(1) Category of other current liabilities
Item Balance at year-end Balance at year-begin
309
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
Item Balance at year-end Balance at year-begin
Pending sales tax 20,376,696.94 53,435,873.13
Factoring fees payable 2,547,001.79
Total 22,923,698.73 53,435,873.13
29. Long term borrowings
(1) Category of long term borrowings
Category Amount at year-end Amount at year-begin
Loan in mortgage 188,000,000.00 101,280,000.00
Loan in credit 300,000,000.00
Interest payable 231,439.30
Total 188,231,439.30 401,280,000.00
(2) Long-term borrowings at year-end
Forei
Amount at Amount at
Borrowing Returning gn Interest
Loan from year-end year-begin
day day curre rate
(RMB) (RMB)
ncy
EIBC (Export-Import Bank)
2020/3/26 2026/11/25 RMB 4.555% 98,000,000.00
Anhui Province Branch Note 1
EIBC (Export-Import Bank)
2019/12/23 2026/12/23 RMB 4.605% 90,000,000.00 100,000,000.00
Anhui Province Branch Note 2
EIBC (Export-Import Bank)
2019/05/30 2021/05/30 RMB 3.685% 300,000,000.00
Anhui Province Branch
Hefei Shouchun branch of
2020/6/15 2021/7/15 RMB 3.75%
Bank of Communications Note 3
Ministry of Finance of Hefei
Note 4 2006/11/09 2021/11/08 RMB 1.80% 1,280,000.00
Total 188,000,000.00 401,280,000.00
Note 1: The Company signed a ―Loan Contract (Export Seller‘s Credit)‖ with the Anhui Branch of the
Export-Import Bank, the contract period is 2435 days, and the loan period is from March 26, 2020 to
November 25, 2026. The borrowing rate is determined by the market quoted interest rate of loans with
a term of more than 5 years minus 0.195%, which fluctuates annually, and the loan amount is
98,000,000.00 yuan.
Note 2: The Company signed a ―Loan Contract (Promoting Domestic Opening-up of Loans-Fixed
310
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
Assets)‖ with Anhui Branch of the Export-Import Bank of China, with the company's fixed assets
and intangible assets as collateral for a long-term loans of 100 million yuan. The contractual term
is 83 months, the borrowing period is from December 23, 2019 to November 25, 2026, the borrowing
rate is determined by the market quoted interest rate of loans with a term of more than 5 years minus
0.195%, which fluctuates annually, and the loan amount is 100,000,000.00 yuan. According to the
repayment schedule agreed with the bank, 3,000,000.00 yuan has been repaid, it is planned to repay
3,000,000.00 yuan on June 25, 2021 and 4,000,000.00 yuan on December 25, 2021. The total
amount of 7,000,000.00 yuan has been reclassified to non-current liabilities due within one year.
The ending balance is 90,000,000.00 yuan.
Note 3: the company signed the working capital loan contract with Hefei Shouchun Branch of
Bank of Communications Co., Ltd., borrowed 100 million yuan from Hefei Shouchun Branch of
Bank of Communications to supplement working capital, the loan period is from June 15, 2020 to
July 15, 2021, the loan interest rate is 3.75%, 1,000,000.00 yuan has been repaid in this period,
the remaining principal of 99,000,000.00 yuan at the end of the period has been reclassified to
non-current liabilities due within one year
Note4: In August of 2006, the Company signed Asset Mortgage Agreement with Ministry of Finance
of Hefei. It takes five industry crusher chambers which cover an area of 2,322.98 square meters as
mortgage for the Company to get the lending of treasury bond fund which has 15-year term and
worthy of 7,040,000 yuan from the Ministry of Finance of Hefei. The capital on-lending began to bear
interest from the appropriate date (November 9, 2006), which would be paid by stages in the loan
period to Ministry of Finance of Hefei by the Company. The first four years were grace period, during
which the annual interest rate was subject to floating interest rate (the annual interest rate was the
annual interest rate of one year fixed deposit plus 0.3%). On 1 March 2013, according to the Letter
Relating to Ceasing Process of Other Securities in respect of the Properties in Feidong Longgang
Industrial Park of Hefei Meiling Co., Ltd. (HCJ (2006) No.85) issued by the finance office of Hefei,
Meiling commenced the national purchase of its land parcels in Longgang in compliance with the land
planning of Hefei municipal government, which required its properties in Longgang land parcel to be
unrestricted. The real estate for mortgage lifted in 2006 of the Company with registration No.
HGYJCZ No.0121 which was used as the security for treasury bonds lending capital (details were set
out in Note VI.15). As of December 31, 2020, the remaining outstanding 640,000.00 yuan has
been reclassified to non-current liabilities due within one year
30. Long-term payable
Item Balance at year-end Balance at year-begin
311
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
Item Balance at year-end Balance at year-begin
Long-term account payable 175,323.91 1,486,921.44
Special payable 1,530,000.00 1,530,000.00
Total 1,705,323.91 3,016,921.44
30.1 Classify by nature
Nature Balance at year-end Balance at year-begin
Financing lease 175,323.91 1,486,921.44
30.2 Special payable
Balance at Increase this Decrease Balance at
Item Reason
year-begin year this year year-end
Special funds for
Technology plan
technological
1,530,000.00 1,530,000.00 project in Zhongshan
transformation from
City
Zhongshan
31. Long-term wage payable
Item Balance at year-end Balance at year-begin
Dismissal welfare 10,571,526.69 13,774,110.61
According to the internal early retirement policy, the long-term payable dismissal welfare bears by the
Company up to end of Current Year amounting to RMB 10,571,526.69
32. Accrual liability
Item Balance at year-end Balance at year-begin Reason
Product quality guarantee note1 14,487,294.50 15,427,220.80 Guarantee of product
note1
Guarantee fund for quality service 47,905,440.57 150,671,923.17 Guarantee of product
Total 62,392,735.07 166,099,143.97
Note 1: Product quality deposit is the maintenance expense provided by the Company under the national policy, while
quality service special guarantees capital is the warranty costs provided for product quality in addition to such policy.
Parts of the commitments on product quality assurance beyond the national three guarantees policy are expired in 2020,
the accrual liability that have not been anticipated has written-off in Current Year, actually 102,184,807.27 Yuan
written-off.
33. Deferred income
(1) Classification of deferred income
312
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
Balance at Increase this Decrease this Balance at
Item Reason
year-begin year year year-end
Government subsidies---subsidies
135,392,959.96 17,863,000.00 16,379,622.87 136,876,337.09
of development project
Government subsidies---subsidies
44,578,011.96 4,076,898.93 40,501,113.03
of Relocation
Total 179,970,971.92 17,863,000.00 20,456,521.80 177,377,450.12
(2) Government subsidy
Amount
New
reckoned into Assets
Amount at subsidy in Other Amount at
Item other income related/Income
year-begin Current changes year-end
in Current related
Year
Year
Demonstration factory
construction for the
intelligent Assets
49,500,000.00 49,500,000.00
manufacturing of related
intelligent
air-conditioner
Demolition
Assets
compensation of 40,613,394.80 2,297,010.33 38,316,384.47
related
Changhong Meiling
Adaptability
Assets
improvement on new 11,824,908.42 2,364,981.72 9,459,926.70
related
coolants production
Subsidy for industrial
development policy Assets
9,044,000.00 1,250,000.00 7,794,000.00
from Hefei for first related
half of 2018
Centre for external
Assets
cooperation of the 2,538,300.00 5,076,600.00 7,614,900.00
related
environmental protection
Changhong Air
Conditioner- relocation Assets
6,880,000.00 6,880,000.00
of production base and related
upgrading & expansion
Key chip and module for
transducer used and Assets
6,840,000.00 6,840,000.00
detection capacity related
building
Subsidy for industrial
development policy from Assets
7,154,200.00 1,788,550.00 5,365,650.00
Hefei for second half of related
2019
RESEARCH AND
APPLICATION OF
THE VISA (VARIABLE Assets
FREQUENCY 5,872,093.04 1,409,302.32 4,462,790.72
related
VOLUME
INTEGRATED
INTELLIGENT
313
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
Amount
New
reckoned into Assets
Amount at subsidy in Other Amount at
Item other income related/Income
year-begin Current changes year-end
in Current related
Year
Year
AIR-CONDITIONER)
Special fund,
Assets
government subsidy 4,200,000.00 4,200,000.00
related
CZ059001
Policy funds for
manufacturing a strong
province, subsidy for
Assets
equipment for the 4,375,000.00 625,000.00 3,750,000.00
related
technological
transformation of
industrial strong base
Subsidy for industrial
development policy from Assets
3,476,800.00 36,216.67 3,440,583.33
Hefei for first half of related
2020
Government subsidy for
new plant construction -
Assets
industrialization of 3,791,666.67 500,000.00 3,291,666.67
related
cryogenic refrigeration
equipment
Subsidies for intelligent
transformation &
upgrading of enterprises
Assets
from the new 3,886,414.58 605,675.00 3,280,739.58
related
industrialization policy
in economic
development zone
Industrialization of
intelligent white
household appliances
Assets
software platform and 3,030,303.05 727,272.72 2,303,030.33
related
typical application
research and
development
Research and application
Assets
of the MCU chip for 2,300,000.00 2,300,000.00
related
inverter control
Demolition
Assets
compensation of 3,964,617.16 1,779,888.60 2,184,728.56
related
Jiangxi Meiling
Special funds for
strategic emerging Assets
2,000,000.00 2,000,000.00
industry and high-end related
growth industry
Subsidy for
characteristic innovation
and entrepreneurship Assets
2,000,000.00 2,000,000.00
carrier project from related
Hefei economic &
development zone
Equipment subsidy for Assets
1,782,083.33 235,000.00 1,547,083.33
the industrial base related
314
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
Amount
New
reckoned into Assets
Amount at subsidy in Other Amount at
Item other income related/Income
year-begin Current changes year-end
in Current related
Year
Year
technical renovation
from Economic and
Information Commission
Subsidy from Zhongshan
Finance Bureau Assets
1,703,353.19 305,646.49 1,397,706.70
(CZ028001 provincial related
special project 2019)
Upgrade project for the
production line of Assets
1,514,166.68 197,499.96 1,316,666.72
Mianyang Meiling related
Intelligent Refrigerator
Subsidy for equipment
purchasing for Hefei Assets
1,358,630.00 179,160.00 1,179,470.00
Tech. Improvement related
project in 2017
Subsidy for purchase of
Assets
R & D instruments and 768,687.50 280,900.00 167,482.30 882,105.20
related
equipment
Technical transformation Assets
4,877,812.50 4,008,124.98 869,687.52
of the Athena project related
Promotion of the
Assets
energy-saving room air 1,069,072.21 210,309.24 858,762.97
related
conditioner
Promoting the new
industry ( annual output
of 0.6 million
Assets
medium& large volume 1,065,443.73 304,412.52 761,031.21
related
environmental protection
and energy saving
freezer)
Emerging Industry Base Assets
620,000.00 620,000.00
Fund Support Item related
Robot policy-rewards for Assets
561,000.00 5,843.74 555,156.26
purchasing robots related
Special fund for Assets
171,540.99 375,700.00 63,193.35 484,047.64
technical improvement related
2018 Zhongshan Special
fund for industrial
Assets
development - Special 730,232.55 265,723.80 464,508.75
related
topic of technical
transformation
Special fund for Assets
478,116.29 61,203.83 416,912.46
technical improvement related
Technical
transformation of Assets
454,687.50 60,625.00 394,062.50
refrigerator evaporator related
workshop
Technical transformation Assets
317,800.00 108,581.67 209,218.33
subsidy related
315
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
Amount
New
reckoned into Assets
Amount at subsidy in Other Amount at
Item other income related/Income
year-begin Current changes year-end
in Current related
Year
Year
Technical renovation of
Assets
air conditioner 286,596.77 95,829.50 190,767.27
related
production line
Refrigerator evaporator Assets
186,295.31 29,033.04 157,262.27
workshop related
Subsidy for the
development on
production line technical 129,493.23 40,892.60 88,600.63 Assets related
reform for green-friendly
high-quality metal pipe
Freezer project of
734,062.42 734,062.42 Assets related
Changhong Meiling
Total 179,970,971.92 17,863,000.00 20,456,521.80 177,377,450.12
34. Share capital
Change during the period (+、-)
Item Balance at year-begin Shares Balance at year-end
New shares Bonus
transferred from Other Subtotal
issued share
capitalreserve
Total shares 1,044,597,881.00 1,044,597,881.00
35. Capital reserve
Amount at Increase this
Item Decrease this year Amount at year-end
year-begin year
Share premium 2,636,193,356.40 126,386.27 655,776.25 2,635,663,966.42
Other capital
48,173,262.70 48,173,262.70
reserve
Total 2,684,366,619.10 126,386.27 655,776.25 2,683,837,229.12
Note: Changes in equity premium this year were due to: 1. this year‘s new increase of the write-off of
non-public issuance fees that were tentatively estimated to be no longer paid in 2016; 2. this year‘s
decrease was due to the acquisition of part of the minority shareholders‘ equity of Wuhan Meizhirong
Electric AppliancesMarketing Co., Ltd., Changhong Meiling Household Appliances Technology Co.,
Ltd., Chengdu Meiling Electric Appliances Marketing Co., Ltd., and Shanghai Meiling Electric
Appliances Marketing Co., Ltd., resulting in the difference between the newly acquired long-term
equity investment and the net asset shares that should be continuously calculated from the date of
purchase of the subsidiaries according to the newly-added shareholding ratio and the the handling fee
for repurchasing B shares.
36. Treasury stock
316
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
Item Balance at Increase this Decrease this Balance at
year-begin year year year-end
Repurchase of B shares 9,929,336.18 9,929,336.18
Total 9,929,336.18 9,929,336.18
Note: The Company convened the 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 on July
27, 2020 and August 18, 2020, which reviewed and approved the Proposal on the Repurchase of
Certain Domestically Listed Foreign Shares (B Shares) of the Company. As of December 31, 2020, a
total of 5,552,151 shares were repurchased at a repurchase price of no more than HK$2.21 per share
(tax included), the total repurchase transaction price was HK$11,699,465.27, and the real-time
exchange rate was equivalent to 9,929,336.18 yuan.
37. Other comprehensive income
Current Year
Less: written
in other
comprehensi Less
ve income in
：
Balance at previous Belong to Belong to Balance at
Item Account before Inco
year-begin period and parent minority year-end
income tax in me
carried company after shareholders
Current Year tax
forward to tax after tax
gains and expe
nses
losses in
current
period
Other comprehensive income re-divided into gains/losses
Including:
conversion
difference
arising from
-18,931,430.36 -2,992,457.19 -2,519,653.81 -472,803.38 -21,451,084.17
foreign
currency
financial
statement
38. Surplus reserves
Amount at Amount at
Item Increase this year Decrease this year
year-begin year-end
Statutory surplus reserve 295,179,158.04 5,577,930.23 300,757,088.27
Discretionary surplus 115,607,702.16
115,607,702.16
reserve
Total 410,786,860.20 5,577,930.23 416,364,790.43
317
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
39. Retained profit
Item Current Year Last Year
Amount at the end of last year 884,127,743.42 904,232,582.87
Add: adjustment from undistributed profit at
-2,734,328.91
period-begin
Including: retroactive adjustment by Accounting
Standards for Business Enterprise
change of accounting policy -2,734,328.91
Correction of former material error
Change of combination scope under
common control
Amount at the beginning of this year 884,127,743.42 901,498,253.96
Add: net profit attributable to shareholders of parent -85,565,716.91
56,441,479.14
company for this year
Less: withdraw of statutory surplus reserve 5,577,930.23 11,136,116.82
withdraw of discretionary surplus reserve
Withdraw of general risk provision
Dividend payable for ordinary shares 52,229,894.05 62,675,872.86
Dividend of ordinary shares transferred to share
capital
Amount at the end of this year 740,754,202.23 884,127,743.42
40. Operation income and operation cost
(1) Operation income and operation cost
Current Year Last Year
Item
Income Cost Income Cost
Main 14,154,240,737.32 11,709,373,550.27
15,442,277,862.82 12,416,146,774.23
business
Other 1,233,809,492.35 1,141,498,122.30
1,110,975,032.11 1,039,545,602.62
business
Total 15,388,050,229.67 12,850,871,672.57 16,553,252,894.93 13,455,692,376.85
(2) Main business classified according to product
Current Year Last Year
Product
Operation income Operation cost Operation income Operation cost
Refrigerator, 7,677,640,685.10 6,148,588,872.52
7,904,855,681.11 6,064,938,890.53
freezer
Air-conditioner 4,619,288,893.44 4,053,771,792.10 5,908,762,786.45 4,996,871,222.18
Washing 466,805,675.50 384,583,731.12
434,111,186.88 353,622,961.34
machine
318
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
Current Year Last Year
Product
Operation income Operation cost Operation income Operation cost
Small 1,143,165,497.06 958,061,925.19
household
appliances and 993,937,389.59 835,102,165.41
kitchen and
bathroom
Other 247,339,986.22 164,367,229.34 200,610,818.79 165,611,534.77
Total 14,154,240,737.32 11,709,373,550.27 15,442,277,862.82 12,416,146,774.23
(3) Main business classified according to sales region
Current Year Last Year
Region
Operation income Operation cost Operation income Operation cost
Domestic 9,174,395,337.92 7,413,002,117.96 11,534,341,837.69 9,040,203,991.36
Overseas 4,979,845,399.40 4,296,371,432.31 3,907,936,025.13 3,375,942,782.87
Total 14,154,240,737.32 11,709,373,550.27 15,442,277,862.82 12,416,146,774.23
Top five clients have income in sales of RMB 6,584,401,244.38 in total, a 42.79% in total
operation income.
41. Business tax and extra charges
Item Current Year Last Year
Treatment fund for abandon electrics & electronics 54,489,675.00 60,529,942.00
City construction tax 27,164,098.44 30,493,037.22
Extra charge for education and local education surcharge 20,252,422.13 22,102,924.13
Real estate tax 19,343,805.61 17,137,312.39
Stamp duty 12,839,245.15 12,018,022.40
Land use tax 7,473,391.72 7,029,712.20
Water fund 7,156,421.01 2,634,354.33
Other 1,596,453.38 1,120,422.24
Total 150,315,512.44 153,065,726.91
42. Sales expense
Item Current Year Last Year
Salary, extra charges and labor service expenses 602,311,290.04 652,044,483.91
Transport expenses 507,219,049.25 499,344,342.58
Market support expenses 300,981,172.56 470,013,932.98
Air conditioner installation expenses 211,809,047.10 256,658,116.20
Storage lease expenses 93,417,953.55 117,617,330.25
319
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
Item Current Year Last Year
National three guarantees expense 90,872,070.92 103,386,444.62
Service support expenses 39,269,346.08 34,245,427.34
Travelling expenses 27,679,048.85 49,979,196.42
Insurance expenses 14,608,773.95 6,706,060.15
Depreciation expenses 7,984,786.81 7,344,357.95
Business activity expenses 7,737,646.92 22,988,306.75
Vehicle expenses 1,692,392.60 1,405,277.27
Advertising expenses 1,423,006.42 21,419,915.53
House-lease expenses 1,085,901.86 18,973,583.57
Communication expenses 1,107,112.94 5,715,469.87
Meeting organization expenses 907,896.51 11,046,982.91
Other expenses 35,697,303.20 41,473,291.65
Total 1,945,803,799.56 2,320,362,519.95
43. Administration expense
Item Current Year Last Year
Salary and social insurance etc. 170,017,710.90 187,993,971.35
Depreciation 19,860,652.31 19,205,351.97
Amortized intangible assets 18,997,141.21 19,321,311.93
Water and electricity fee 6,596,531.99 15,055,164.38
Domestic travelling fee 3,138,305.00 6,681,174.67
Property insurance fee 5,727,401.94 4,539,551.94
Business activities fee 3,421,679.60 5,132,130.61
Office fee 1,847,681.31 5,116,649.46
Board fees 1,446,841.30 1,546,949.10
Inspection and authentication fee 648,176.21 2,203,362.58
Other expenses 48,543,562.79 63,891,525.83
Total 280,245,684.56 330,687,143.82
44. R&D expenses
Item Current Year Last Year
Salary and social insurance etc. 124,899,251.69 110,566,764.34
Amortized intangible assets 114,668,760.56 93,222,550.36
Trial fee of R&D 44,713,078.54 45,301,220.97
Technical development cost 14,434,361.38 15,721,270.26
Inspection and authentication fee 15,455,566.85 13,478,419.82
320
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
Item Current Year Last Year
Depreciation 15,179,901.55 9,640,335.06
Cost of mould 5,534,614.33 5,407,099.44
Software royalty 755,542.28 2,424,431.50
Domestic travel expenses 969,236.31 1,964,177.16
Other expenses 44,028,609.42 36,492,420.78
Total 380,638,922.91 334,218,689.69
45. Financial expenses
Item Current Year Last Year
Interest expenditure 88,262,152.17 93,523,492.74
Less: Interest income 139,603,245.84 133,568,862.29
Add: exchange loss 33,026,909.13 17,118,898.27
Procedure charge expenditure 19,928,603.14 8,795,468.59
Discount expenditure -7,144,403.44 -85,047.91
Total -5,529,984.84 -14,216,050.60
46. Other income
Item Current Year Last Year
Industrial development policy subsidy 28,058,461.33 1,250,000.00
Subsidy for export credit insurance 7,516,778.79 1,157,100.00
Subsidy for employment stable 5,520,715.46 35,675,926.90
Immediate refund of VAT for software products 4,858,596.32 6,349,543.15
Technical transformation of the Athena project 4,008,124.98 4,286,250.00
Some policy subsidies to support the development of digital
3,500,000.00 1,800,000.00
economy in Anhui
Enterprise policy funds from Economic and Trade Development
3,074,766.67 3,500,000.00
Bureau in Hefei economic development zone
Special subsidy for Nanjing Port 2,571,170.00 1,234,485.00
Increase in operating fee subsidies for propane production lines in
2,403,000.00
the room air conditioner industry
Sichuan Province Accounts Receivable Financing Core Enterprise
2,369,300.00
Reward and Make Up
Adaptability improvement on new coolants production 2,364,981.72 2,364,981.72
Demolition compensation of Changhong Meiling 2,297,010.33 1,999,652.91
Talent subsidies 1,931,630.00 1,395,300.00
321
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
Item Current Year Last Year
Science and technology innovation and enterprise development 1,895,786.40 671,307.09
fund
Subsidy for industrial development policy from Hefei for second
1,788,550.00
half of 2019
Demolition compensation of Jiangxi Meiling 1,779,888.60 1,794,257.14
Subsidies for technological transformation and financial
1,681,100.00
incremental contribution projects
Large enterprises and large groups drive financing and
1,430,000.00
development projects for small and medium-sized enterprises
RESEARCH AND APPLICATION OF THE VISA (VARIABLE
FREQUENCY VOLUME INTEGRATED INTELLIGENT 1,409,302.32 1,409,302.33
AIR-CONDITIONER)
Provincial-level foreign trade fund subsidy from finance bureau in
1,338,474.94 2,857,000.00
Hefei economic development zone
Promote high-quality manufacturing development awards in 2019 1,275,000.00
Subsidy for industrial development policy from Hefei for first half
1,250,000.00
of 2018
Special funds for foreign economic & trade development and port
1,062,566.00 1,057,163.36
construction for 2018
Policy subsidy for promoting scientific and technological
987,900.00 679,700.00
innovation
Subsidy received from the government to activate idle factories 843,732.00 1,687,464.00
Special funds for provincial-level innovation-driven development 800,000.00 2,950,000.00
Epidemic subsidy 771,450.00
Freezer project of Changhong Meiling 734,062.42 734,062.52
Industrialization of intelligent white household appliances software
727,272.72 727,272.71
platform and typical application research and development
State-funded project-research and development of frequency
700,000.00
conversion control chip
Corporate subsidy income 665,061.00
Enterprise special fund 630,000.00 1,500,000.00
Policy funds for manufacturing a strong province, subsidy for
equipment for the technological transformation of industrial strong 625,000.00 1,000,000.00
base
Subsidies for intelligent transformation & upgrading of enterprises
605,675.00 605,675.00
from the new industrialization policy in economic development
zone
322
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
Item Current Year Last Year
Tax contribution award 584,300.00 600,000.00
Special funds for overseas investment insurance 576,699.00
Logistics subsidy 550,000.00 1,787,400.00
Receive tax refund 523,166.43
Government subsidy for new plant construction - industrialization
500,000.00 500,000.00
of cryogenic refrigeration equipment
IC Industry Policy Fund 500,000.00
Subsidy for cultivation of the enterprise brand 500,000.00 1,200,000.00
Subsidy for international market development of small &
377,144.00 380,221.00
medium-sized enterprise
Subsidy from Zhongshan Finance Bureau (CZ028001 provincial
305,646.49
special project 2019)
Promoting the new industry ( annual output of 0.6 million
medium& large volume environmental protection and energy 304,412.52 304,412.52
saving freezer)
2018 Zhongshan Special fund for industrial development - Special
265,723.80 296,646.81
topic of technical transformation
Equipment subsidy for the industrial base technical renovation
235,000.00 179,160.00
from Economic and Information Commission
Return of service charge of individual income tax 219,724.18 338,175.13
Promotion of the energy-saving room air conditioner 210,309.24 210,309.24
Award subsidy for intellectual property 205,000.00 444,400.00
Industrial Development Fund 200,000.00 1,440,000.00
Upgrade project for the production line of Mianyang Meiling
197,499.96 65,833.32
Intelligent Refrigerator
Subsidy for equipment purchasing for Hefei Tech. Improvement
179,160.00 235,000.00
project in 2017
Subsidy for purchase of R & D instruments and equipment 167,482.30
Technical transformation subsidy 108,581.67
Technical renovation of air conditioner production line 95,829.50
Special fund for technical improvement 63,193.35 96,727.01
Special fund for technical improvement 61,203.83 61,203.83
Technical transformation of refrigerator evaporator workshop
60,625.00 59,345.54
Subsidy for the development on production line technical reform
40,892.60 40,892.60
for green-friendly high-quality metal pipe
Subsidy for industrial development policy from Hefei for first half
36,216.67
of 2020
Refrigerator evaporator workshop 29,033.04
323
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
Item Current Year Last Year
Technology transformation funds 10,000.00 42,885.24
Robot policy-rewards for purchasing robots 5,843.74
Special guiding fund for construction of ―Three project and One
500,000.00
innovation‖
Special funds for steady growth of foreign trade in Zhongshan for
1,532,797.00
2017
Special funds for economic development of 2019 410,102.00
Provincial special fund for industrial transformation of the 2 nd
1,000,000.00
batch for 2019
Award subsidy for industrial linkage development 1,239,100.00
Special fund for promoting innovation and development of
1,000,000.00
processing trade
Policy of promoting the development of new industrialization 367,800.00
Innovation development project for the E-Business 370,429.05
Subsidy for E-business sales 2,000,000.00
Reward for the smart home appliance technology of the industry
900,000.00
policy
National high-Tech award 400,000.00
Commercial circulating funds for promoting the policy of service
400,000.00
industry from economy & development zone
Premium subsidy for science & technology insurance 600,000.00
Award for integration of information technology and
699,539.00
industrialization
Government subsidy for the project of ministry of finance of
science and education entrepreneurship park in Mianyang 265,393.74
Technology Town
Venture expansion fund 500,000.00
Subsidy for equipment renovation 1,019,312.50
Award subsidy for provincial manufacturing industry & internet
500,000.00
integration demonstration enterprise
Supplementary fund for characteristic dual creative carriers of
4,000,000.00
borrowing and transferring
Subsidy for staff training 819,422.65
Subsidy for home appliance standards customization project from
574,000.00
China Household Appliances Research Institute
Special fund for industrial development of Zhongshan City 465,723.80
324
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
Item Current Year Last Year
Science and technology development special fund project of
200,000.00
Zhongshan City
Patent subsidy funds 395,000.00
Other units 3,534,135.95 3,153,426.88
Total 104,122,180.27 110,281,102.69
47. Investment income
Item Current Year Last Year
Long-term equity investment income by equity method -3,500,527.61 -8,049,228.81
Investment income obtained from disposal of tradable financial
46,456,622.69 -78,815,580.08
assets
Income from financial products 7,952,740.73 53,507,866.92
Investment income of other non-current financial assets during
27,218,378.81 661,434.48
holding period
Total 78,127,214.62 -32,695,507.49
48. Changes in fair value gains
Item Current Year Last Year
Tradable financial assets 39,512,070.15 -1,523,366.67
Including :Income of fair value changes from derivative financial
39,512,070.15 -1,523,366.67
instruments
Tradable financial liability -3,506,201.30 54,516,996.83
Including :Income of fair value changes from derivative financial
-3,506,201.30 54,516,996.83
instruments
Other non-current financial assets 5,608,931.34
Total 41,614,800.19 52,993,630.16
49. Credit impairment loss
Item Current Year Last Year
Note receivable bad debt loss -6,578,442.30 15,359,134.10
Account receivable bad debt loss -14,508,281.88 -9,496,891.77
Other account receivable bad debt loss 4,028,236.18 -1,228,945.44
Total -17,058,488.00 4,633,296.89
50. Assets impairment loss
325
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
Item Current Year Last Year
Loss on inventory valuation
-56,152,155.82 -19,795,727.76
Impairment loss on intangible assets -22,114,421.01 -8,815,051.75
Impairment loss on fixed assets -445,081.08 -1,798,225.06
Total -78,711,657.91 -30,409,004.57
51. Income from assets disposal
Amount reckoned
into non-recurring
Item Current Year Last Year
gains/losses in
Current Year
Income from non-current assets disposal -500,976.21 -9,537,945.52 -500,976.21
Including: income classify to assets ready for
sale
income not classify as to assets ready
-500,976.21 -9,537,945.52 -500,976.21
for sale
Including: Income from fixed assets
-500,976.21 -5,493,947.51 -500,976.21
disposal
Income from intangible assets
-4,043,998.01
disposal
Total -500,976.21 -9,537,945.52 -500,976.21
52. Non-operation revenue
(1) Non-operation revenue
Amount reckoned
into non-recurring
Item Current Year Last Year
gains/losses in
Current Year
Income of penalty 561,010.41 863,078.25 561,010.41
Government subsidy 115,000.00
Other 7,907,595.00 5,501,844.73 7,907,595.00
Total 8,468,605.41 6,479,922.98 8,468,605.41
(2) Government subsidy
Assets/income
Item CurrentYear LastYear Resource and basis
related
Total other government subsidy 115,000.00
Total 115,000.00
53. Non-operating expenditure
326
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
Amount reckoned
into non-recurring
Item Current Year Last Year
gains/losses in
Current Year
Non-current asset retirement losses 1,610,319.34 1,610,319.34
Public welfare donation expenditure 413,569.21 413,569.21
Penalty and late fee 556,035.82 295,126.45 556,035.82
Other 5,064,717.27 5,114,631.25 5,064,717.27
Total 7,644,641.64 5,409,757.70 7,644,641.64
54. Income tax expenses
(1) Income tax expenses
Item Current Year Last Year
Current income tax 18,657,750.29 8,656,853.45
Deferred Income Tax -25,413,978.61 17,609,171.49
Total -6,756,228.32 26,266,024.94
55. Other comprehensive income
Found more in 37. Other comprehensive income in VI
56. Items of cash flow statement
(1) Cash received (paid) from (for) other activities relating to operation/investment/financing
1) Cash received from other activities relating to operation
Item Current Year Last Year
Government subsidy and rewards 95,927,171.54 107,265,513.11
Cash deposit, deposit 37,095,731.45 14,723,011.12
Collection of restriction fund 7,872,582.73 35,368,949.87
Rental income 7,062,728.75 7,924,382.64
Compensations 2,594,225.87 3,065,739.13
Petty cash collection 669,366.91 95,880.00
Trademark use fee 315,726.01
Other 7,854,834.00 3,962,164.63
Total 159,076,641.25 172,721,366.51
327
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
2) Cash paid for other activities relating to operation
Item Current Year Last Year
Market expenses 255,164,897.06 285,132,543.41
Rental fee 119,053,780.02 173,859,467.31
Travel expenses, meeting fees and exhibition fees 36,309,468.38 73,029,607.07
Petty cash, deposit, Cash deposit 54,464,272.08 73,354,112.01
Advertising fee 7,478,184.84 34,667,697.12
Transfer to restriction fund 76,693,696.74 14,496,135.53
Vehicle expenses 22,580,186.94 18,419,063.04
Business activities fee 14,449,890.29 29,264,931.29
Inspection and certification fee, certification charge and
35,181,026.65 27,067,600.74
reviewing fee
Technological cooperation costs and consulting charge 21,277,315.33 10,935,357.90
Board fee 1,831,261.76 9,409,783.66
Service supporting fee 70,451,962.30 84,858,392.13
Service Charge 11,957,196.81 15,939,966.84
Office expenses 8,118,120.21 8,414,528.45
Communication fee 2,211,811.13 4,356,964.71
Labor service fee 6,369,121.47 10,746,378.64
Repair charge 13,097,229.57 12,704,160.68
Other 101,246,863.15 100,553,596.73
Total 857,936,284.73 987,210,287.26
3) Cash received from other activities relating to investment
Item Current Year Last Year
Interest income arising from bank savings 139,527,348.90 126,072,829.83
Foreign exchange investment income 47,402,894.53
Cash deposit 1,317,038.52 688,706.45
Total 188,247,281.95 126,761,536.28
4) Cash paid for other activities relating to investment
Item Current Year Last Year
Loses of forward exchange settlement 946,271.84 78,815,580.08
Bid bond refund 40,000.00
Total 986,271.84 78,815,580.08
5) Cash received from other activities relating to financing
328
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
Item Current Year Last Year
Recover loan cash deposit 23,232,000.00
Meiling series (internal) bill discounting fundraising 4,919,427.20
Total 28,151,427.20
6) Cash paid for other activities relating to financing
Item Current Year Last Year
Payment for B share repurchase 9,934,941.56
Financing lease 2,570,997.36 1,900,677.91
Handling charge of dividend 36,893.14 44,313.96
Loan deposit 23,232,000.00
Repayment of investment 7,000,000.00
Intermediary service fee from financing 308,736.00
Total 12,542,832.06 32,485,727.87
(2) Supplementary of the consolidated cash flow statement
Item 2020 2019
1. Net profit is adjusted to cash flow of operation
activities:
Net profit -79,122,112.48 43,512,200.81
Add: provision for depreciation of assets 17,652,497.13 25,775,707.68
Credit impairment loss 13,330,145.31
Depreciation of fixed assets, consumption of oil gas
224,389,307.35 194,179,175.14
assets and depreciation of productive biological assets
Amortization of intangible assets 138,997,172.49 116,308,174.70
Amortization of long-term retained expense 500,976.21 9,537,945.52
Loss from disposal of fixed assets, intangible assets and
1,610,319.34
other long term assets(gain is listed with ―-‖)
Loss from discarding fixed assets as useless (gain is
-41,614,800.19 -52,993,630.16
listed with ―-‖)
Loss from change of fair value(gain is listed with ―-‖) -18,314,184.54 -22,926,471.28
Financial expense (gain is listed with ―-‖) -78,127,214.62 32,695,507.49
Investment loss (gain is listed with ―-‖) -29,732,801.80 14,750,478.61
Decrease of deferred income tax assets (increase is
4,318,823.19 3,158,060.03
listed with ―-‖)
Increase of deferred income tax liabilities (decrease is
-249,696,219.79 739,888,328.32
listed with ―-‖)
Decrease of inventories (increase is listed with ―-‖) 196,371,339.03 253,957,057.05
Decrease of operational accounts receivable (increase is
1,247,489,556.08 -92,558,557.19
listed with ―-‖)
329
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
Item 2020 2019
Other 55,463,419.75 19,720,008.32
Net cash flow arising from operation activities 1,403,516,222.46 1,285,003,985.04
2. Major investment and financing activities that do not
involve cash receipts:
Conversion of debt into capital
Switching Company bonds due within one year
financing lease of fixed assets
3. Net change in cash and cash equivalents:
Balance at year-end of cash 6,425,529,815.10 5,385,807,475.51
Less: Balance at year-begin of cash 5,385,807,475.51 4,484,643,187.93
Add: Balance at year-end of cash equivalents
Less: Balance at year-begin of cash equivalents
Net increase in cash and cash equivalents 1,039,722,339.59 901,164,287.58
(3) No net cash paid for subsidiary obtained in Current Year
(4) No net cash received from subsidiary disposal in Current Year
(5) Cash and cash equivalent
Item Current Year Last Year
Cash 6,425,529,815.10 5,385,807,475.51
Including: cash in stock 35,088.07 44,818.07
Bank deposits available for payment at any time. 6,049,544,898.32 4,771,094,609.77
Other monetary fund available for payment at any time 375,949,828.71 614,668,047.67
Cash equivalents
Including: bond investment due within 3 months
Balance of cash and cash equivalents at year-end 6,425,529,815.10 5,385,807,475.51
Including: using the restricted cash and cash equivalents of
the parent company or subsidiary of the group
57. Assets with ownership or the right to use restricted
Item Book value at year-end Reasons
Monetary fund 159,382,669.14 Cash deposit, Frozen funds
Receivables financing note 1 548,295,149.14 Pledged
note 2
Investment real estate 3,639,780.95 Pledged
note 2
Fixed assets 363,788,878.69 Pledged
Intangible assets note 2 289,567,335.79 Pledged
330
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
Item Book value at year-end Reasons
Total 1,364,673,813.71
Note 1: The note receivable listed in receivables financing was pledged for: short-term financing from the bank; with
purpose of improving the note utilization, the Company draw up bank acceptance by pledge parts of the outstanding
notes receivable to the bank
Note 2: The mortgage of investment real estate, fixed assets, and intangible assets is the mortgage of houses and
buildings and land use rights. For details, please refer to Note VI. 29. Long-term loans.
58. Foreign currency
(1) Foreign currency
Item Ending foreign currency Exchange rate Ending RMB converted
balance balance
Monetary fund 202,737,892.02
Including: USD 10,051,207.36 6.5249 65,583,122.90
Euro 9,761,377.61 8.0250 78,335,055.32
AUD 2,697,258.22 5.0163 13,530,256.41
Pakistan Rupi 33,393,777.12 0.04065 1,357,457.04
IDR 10,488,306,782.95 0.0004644 4,870,769.67
HKD 40,394,423.62 0.8416 33,995,946.92
PHP 37,217,367.82 0.1361 5,065,283.76
Account receivable 825,659,818.12
Including: USD 96,022,567.81 6.5249 626,537,652.70
Euro 6,426,785.54 8.0250 51,574,953.96
AUD 16,489,237.00 5.0163 82,714,959.56
Pakistan Rupi 1,206,060,581.30 0.04065 49,026,362.63
IDR 34,035,075,939.19 0.0004644 15,805,889.27
Other account receivable 6,884,721.82
Including: USD 879,700.13 6.5249 5,739,955.38
Pakistan Rupi 15,974,268.39 0.04065 649,354.01
IDR 1,057,987,575.37 0.0004644 491,329.43
PHP 30,000.00 0.1361 4,083.00
Account payable 24,452,910.55
331
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
Item Ending foreign currency Exchange rate Ending RMB converted
balance balance
Including: USD 2,904.75 6.5249 18,953.20
Euro 13,419.32 8.0250 107,690.04
Pakistan Rupi 219,900,318.57 0.04065 8,938,947.95
IDR 33,133,762,618.43 0.0004644 15,387,319.36
Other account payable 35,041,126.61
Including: USD 10,007.76 6.5249 65,299.63
AUD 1,528,235.60 5.0163 7,666,088.24
Euro 1,381,720.30 8.0250 11,088,305.41
HKD 38,744.82 0.8416 32,607.64
Pakistan Rupi 310,650,224.85 0.04065 12,627,931.64
IDR 7,336,718,148.98 0.0004644 3,407,171.91
PHP 1,129,479.34 0.1361 153,722.14
Short-term loans 92,497,500.00
Including: Euro 9,500,000.00 8.0250 76,237,500.00
Pakistan Rupi 400,000,000.00 0.04065 16,260,000.00
(2) Foreign operational entity
The foreign operational entity of the Company was Changhong Ruba Trading Company (Private)
Limited, mainly operates in Lahore, Pakistan;
Recording currency is Pakistan Rupi. CHANGHONG MEILING ELECTRIC INDONESIA, PT,
mainly operates in Jakarta; recording currency is IDR. CH-Meiling International (Philippines) Inc,
mainly operates in Philippines; Recording currency is PHP.
59. Government subsidy
Amount reckoned
Item Amount Item into current
gain/loss
Industrial development policy subsidy 28,058,461.33 Other income 28,058,461.33
Subsidy for export credit insurance 7,516,778.79 Other income 7,516,778.79
Subsidy for industrial development policy from Hefei
7,154,200.00 Deferred income 1,788,550.00
for second half of 2019
Subsidy for employment stable 5,520,715.46 Other income 5,520,715.46
332
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
Amount reckoned
Item Amount Item into current
gain/loss
Tax refund 5,381,762.75 Other income 5,381,762.75
Centre for external cooperation of the environmental
5,076,600.00 Deferred income
protection
Some policy subsidies to support the development of
3,500,000.00 Other income 3,500,000.00
digital economy in Anhui
Subsidy for industrial development policy from Hefei
3,476,800.00 Deferred income 36,216.67
for first half of 2020
Enterprise policy funds from Economic and Trade
Development Bureau in Hefei economic development 3,074,766.67 Other income 3,074,766.67
zone
Special subsidy for Nanjing Port 2,571,170.00 Other income 2,571,170.00
Increase in operating fee subsidies for propane
2,403,000.00 Other income 2,403,000.00
production lines in the room air conditioner industry
Sichuan Province Accounts Receivable Financing
2,369,300.00 Other income 2,369,300.00
Core Enterprise Reward and Make Up
Talent subsidies 1,931,630.00 Other income 1,931,630.00
Science and technology innovation and enterprise
1,895,786.40 Other income 1,895,786.40
development fund
Subsidies for technological transformation and
1,681,100.00 Other income 1,681,100.00
financial incremental contribution projects
Large enterprises and large groups drive financing and
development projects for small and medium-sized 1,430,000.00 Other income 1,430,000.00
enterprises
Provincial-level foreign trade fund subsidy from
1,338,474.94 Other income 1,338,474.94
finance bureau in Hefei economic development zone
Promote high-quality manufacturing development
1,275,000.00 Other income 1,275,000.00
awards in 2019
333
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
Amount reckoned
Item Amount Item into current
gain/loss
Special funds for foreign economic & trade
1,062,566.00 Other income 1,062,566.00
development and port construction for 2018
Policy subsidy for promoting scientific and
987,900.00 Other income 987,900.00
technological innovation
Subsidy received from the government to activate idle
843,732.00 Other income 843,732.00
factories
Special funds for provincial-level innovation-driven
800,000.00 Other income 800,000.00
development
Epidemic subsidy 771,450.00 Other income 771,450.00
State-funded project-research and development of
700,000.00 Other income 700,000.00
frequency conversion control chip
Corporate subsidy income 665,061.00 Other income 665,061.00
Enterprise special fund 630,000.00 Other income 630,000.00
Emerging Industry Base Fund Support Project 620,000.00 Deferred income
Tax contribution award 584,300.00 Other income 584,300.00
Special funds for overseas investment insurance 576,699.00 Other income 576,699.00
Robot policy-rewards for purchasing robots 561,000.00 Deferred income 5,843.74
Logistics subsidy 550,000.00 Other income 550,000.00
IC Industry Policy Fund 500,000.00 Other income 500,000.00
Subsidy for cultivation of the enterprise brand 500,000.00 Other income 500,000.00
Subsidy for international market development of
377,144.00 Other income 377,144.00
small & medium-sized enterprise
Special fund for technical improvement 375,700.00 Deferred income 63,193.35
Technical transformation subsidy 317,800.00 Deferred income 108,581.67
Subsidy for purchase of R & D instruments and
280,900.00 Deferred income 167,482.30
equipment
334
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
Amount reckoned
Item Amount Item into current
gain/loss
Award subsidy for intellectual property 205,000.00 Other income 205,000.00
Industrial Development Fund 200,000.00 Other income 200,000.00
Technology transformation fund 10,000.00 Other income 10,000.00
Other units 3,534,135.95 Other income 3,534,135.95
Total 101,308,934.29 85,615,802.02
VII. Changes of consolidation rage
1. Enterprise combined under the different control: nil
2. Enterprise combined under the same control: nil
3. Reversed takeover: nil
4. Disposal of subsidiary: nil
5. Subsidiary liquidated
Difference between Other
the disposal price and comprehensive
proportion of the income transferred
Priceof Determination
Ratio ofthe Time point of subsidiary’snet assets into investment
the Way ofthe basis forthetime
Subsidiary equity control right enjoy in aspectofthe income ,which
equity equity disposed point of control
disposed lose consolidated financial relatedwiththe
disposed rightlose
statement,whichis equity investment
respond to the of original
disposal investment subsidiary
Guangxi Huidian
Household
Liquidation Liquidation
Electrical 100.00% 2020.03
cancellation completed
Appliances Co.,
Ltd.
Changmei
Liquidation Liquidation
Technology Co., 96.256% 2020.12
cancellation completed
Ltd.
6. Subsidiary newly established:
Name of company New merger Shareholding Net asset at Net profit in
335
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
reasons ratio year-end Current Year
CH-Meiling International (Philippines) Newly
100.00% 5,475,315.83 -1,169,089.69
Inc. established
Hefei Changhong Meiling Life Electric Newly
70.00%
Co., Ltd. established
7. Subsidiary merger by absorption
Name of company Equity ratio beforeabsorption Time forabsorption
Chengdu Meiling Electric Appliances Marketing Co.,
100.00% 2020.11
Ltd
Fuzhou Meiling Electric Appliances Marketing Co.,
100.00% 2020.11
Ltd
Nanjing Meiling Electric Appliances Marketing Co.,
100.00% 2020.11
Ltd
Hanzhou Meiling Electric Appliances Marketing Co.,
100.00% 2020.11
Ltd
Shanghai Meiling Electric Appliances Marketing Co.,
100.00% 2020.11
Ltd
Beijing Meiling Electric Appliances Marketing Co.,
100.00% 2020.11
Ltd
In November 2020, Hefei Meiling Group Holding Co., Ltd. Purchased 100% equity of Chengdu
Meiling Electric Appliances Marketing Co., Ltd. (hereinafter referred to as "Chengdu Meiling"),
Fuzhou Meiling Electric Appliances Marketing Co., Ltd. (hereinafter referred to as "Fuzhou
Meiling"), Nanjing Meiling Electric Appliances Marketing Co., Ltd. (hereinafter referred to as
"Nanjing Meiling"), Hangzhou Meiling Electric Appliances Marketing Co., Ltd. (hereinafter referred
to as "Hangzhou Meiling"), Shanghai Meiling Electric Appliances Marketing Co., Ltd. (hereinafter
referred to as "Shanghai Meiling"), Beijing Meiling Electric Appliances Marketing Co., Ltd. The
company (hereinafter referred to as "Beijing Meiling") from Hefei Meiling Electric Appliances
Marketing Co., Ltd., and merged the six companies by absorption. As of December 31, 2020, the six
acquired companies have not yet completed the industrial and commercial cancellation.
VIII. Equity in other entity
1. Equity in subsidiary
(1) Composition of the enterprise group
Main office Registration Shareholding ratio（%)
Subsidiary Business nature Acquire by
place place Directly Indirectly
Manufacturing and
Zhongke Meiling Cryogenic Technology
Hefei Hefei 63.2683 Investment
Co., Ltd.1) sales
336
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
Main office Registration Shareholding ratio（%)
Subsidiary Business nature Acquire by
place place Directly Indirectly
Software
Sichuan Hongmei Intelligent Technology Mianyang Mianyang 100 Investment
Co., Ltd.2) development
Manufacturing and
Mianyang Meiling Refrigeration Co., Ltd.3) Mianyang Mianyang 95 5 Investment
sales
Manufacturing and
Jiangxi Meiling Electric Appliance Co., Jingdezhen Jingdezhen 98.75 1.25 Investment
Ltd.4) sales
Software
Hefei Meiling Wulian Technology Co.,
Hefei Hefei 100 Investment
Ltd.5) development
Hefei Meiling Electric Appliances Sales
Hefei Hefei 99.82 0.18 Investment
Marketing Co., Ltd 6)
Jinan Xiangyou Electric Appliances
Jinan Jinan Sales 93.4 Investment
Marketing Co., Ltd 7)
Wuhan Meizirong Electrical Marketing Co.,
Wuhan Wuhan Sales 92 Investment
Ltd 8)
Zhengzhou Meiling Electric Appliances Zhengzho
Zhengzhou Sales 100 Investment
Marketing Co., Ltd 9) u
Taiyuan Meiling Electric Appliances
Taiyuan Taiyuan Sales 100 Investment
Marketing Co., Ltd. 10)
Guangzhou Meiling Electric Appliances Guangzho Guangzho
Sales 98 Investment
Marketing Co., Ltd. 11) u u
Tianjin Meiling Electric Appliances
Tianjin Tianjin Sales 100 Investment
Marketing Co., Ltd. 12)
Enterprise
combined
Hefei Meiling Nonferrous Metal Products Manufacturing and
Hefei Hefei 100 under the
Co., Ltd.13) sales
different
control
Enterprise
Changhong Meiling Ridian Technology Manufacturing and combined
Zhongshan Zhongshan 99.0361
Co., Ltd.14) sales under the same
control
CHANGHONGMEILINGELECTRICIND Jakapta Jakapta Sales 100 Investment
ONESIA,PT 15)
ChanghongRubaTradingCompany（Private) Pakistan Pakistan Sales 60 Investment
Limited 16)
Enterprise
Sichuan Changhong Air Conditioning Co., Mianyang Mianyang Manufacturing and combined
100
Ltd.17) sales under the same
control
Enterprise
Zhongshan Changhong Electric Co., Manufacturing and combined
Zhongshan Zhongshan 90 10
Ltd.18) sales under the same
control
Enterprise
Manufacturing and combined
Hefei Meiling Group Holdings Limited19) Hefei Hefei 100
sales under the
different
337
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
Main office Registration Shareholding ratio（%)
Subsidiary Business nature Acquire by
place place Directly Indirectly
control
Enterprise
combined
Meiling Equator Household Appliance Manufacturing and
Hefei Hefei 100 under the
(Hefei) Co., Ltd. 20) sales
different
control
Enterprise
combined
Manufacturing and
Hefei Equator Appliance Co., Ltd. 21) Hefei Hefei 100 under the
sales
different
control
Hongyuan Ground Energy Heat Pump Tech. Mianyang Mianyang Manufacturing and 51 Investment
Co., Ltd22) sales
Ground Energy Heat Pump Tech. Zhongshan Zhongshan Manufacturing and 51 Investment
(Zhongshan) Co., Ltd. 23) sales
Meiling CANDY Washing Machine Co., Manufacturing and
Hefei Hefei 60 Investment
Ltd. 24) sales
Guangzhou Changhong Trading Co., Guangzhou Guangzhou Sales 100 Investment
Ltd.25)
Hebei Hongmao Household Appliance Handan Handan Manufacturing and
99.0361 Investment
Technology Co., Ltd26) sales
R&D of
Anhui Tuoxing Technology Co., Ltd.27) Hefei Hefei 63.2683 Investment
technology
CH-Meiling.International (Philippines)
Philippines Philippines Sales 100 Investment
Inc.28)
Hefei Changhong Meiling Life Electric Co.,
Hefei Hefei Sales 70 Investment
Ltd. 29)
Note:
1) Zhongke Meiling Cryogenic Technology Co., Ltd. (hereinafter referred to as Zhongke Meiling),
the predecessor of which was Zhongke Meiling Cryogenic Technology Limited Liability Company,
was established on 29 October 2002 by joint contribution from the Company and Technical Institute of
Physics and Chemistry, CAS (―TIPC‖), with registered capital of RMB60 million upon the
establishment, among which, the Company made capital contribution of RMB42 million (including
the assets in specie at the consideration of RMB35,573,719.70 as evaluated by Beijing Zhongzheng
Appraisal Co., Ltd. with issuance of the Appraisal Report (ZZPBZ(2002)No.029) and cash
contribution of RMB6,426,280.30) accounting for 70% of the aforesaid registered capital, and TIPC
made capital contribution of RMB18 million with intangible assets of such value (namely the single
compressor mixture industrial low temperature refrigeration technology) as evaluated by Jingzhongzi
Assets Appraisal Co., Ltd. with issuance of the Appraisal Report (ZZPBZ(2002)No.225) accounting
for 30% of the aforesaid registered capital. The paid-in of the above registered capital has been
verified by Huazheng Accounting Firm by issuance of the Assets Verification Report (HZYZ (2002)
338
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
No. B157) dated 16 October 2002.
In October 2014, according to the relevant provision under the Management Rules on Application of
State Owned Assets by Central Business Organs, TIPC transferred the 30% equity interests held by it
in Zhongke Meiling Cryogenic Technology Company Limited to its wholly-owned subsidiary
Zhongke Xianxing (Beijing) Assets Management Co., Ltd (hereinafter referred to as Zhongke
Xianxing) which would perform management over the operating assets of TIPC. Upon consideration
and approval at the 37th session of the 7th Board of Directors of Hefei Meiling Co., Ltd, it is agreed to
waive the pre-emptive right.
On 10 August 2015, all the founders signed the Founder Agreement of Zhongke Meiling Cryogenic
Technology Company Limited, pursuant to which, they decided to change the firm type of Zhongke
Meiling Cryogenic Technology Company Limited to a joint stock company. Based on the net assets of
RMB96, 431,978.25 as audited by Xinyong Zhonghe CPA as of 30 June 2015, an aggregate of
65,000,000 shares have been converted at the proportion of 1:0.67, which are to be held by the
original shareholders according to their respective entitlement. In case that the net assets exceed
registered capital, the balance shall be recorded in capital reserve. On 28 August 2015, Xinyong
Zhonghe CPA reviewed the registered capital and paid-in thereof in respect of the stock reform, and
issued Assets Verification Report (XYZH/2015CDA40161). The Company registered industrial and
commercial information on 11 September 2015.
On November 25, 2016, the first Extraordinary Shareholders' General Meeting of Zhongke Meiling
Cryogenic Technology Co., Ltd. in 2016 considered and approved the Proposal on the Issuance Plan
of the Company; Zhongke Meiling Company issued 3,150,000 shares to specific investors by the
non-public offering of shares at 1.63 Yuan per share. The current capital increase was verified by the
No.［XYZH/2016CDA40294］capital verification report issued by ShineWing CPA (special general
partnership). After the completion of the issuance, the share capital of Zhongke Meiling Company
increased to 68,150,000 shares and the Company's shareholding ratio was 66.76%.
On 15 September 2017, the Proposal of the First Stock Placement of Zhongke Meiling Cryogenic
Technology Co., Ltd for year of 2017 was deliberated and approved by 4th session extraordinary of
shareholders general meeting of 2017. Zhongke Meiling offering 490,300 shares to specific investors
by way of privately placement, which has 1.72 Yuan per share in amount. The capital increasement
has been verified by the No. ［XYZH/2017CDA40324 ］capital verification report issued by
ShineWing CPA (special general partnership). After the completion of shares placement, stock of the
Company increased to 68,640,300 shares and 66.87% held by the Company.
339
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
On September 9, 2019, the 10th Meeting of the Second Board of Directors and the Fourth
Extraordinary Shareholders‘ Meeting reviewed and approved the Proposal on the First Stock Issuance
Plan of Zhongke Meiling Cryogenic Technology Co., Ltd. in 2019 (Revised Version), the number of
shares to be issued this time does not exceed 3,907,900 shares (including 3,907,900 shares), the issue
price is not less than 2.16 yuan per share, and the raised funds are expected to not exceed 8,441,064.00
yuan (including 8,441,064.00 yuan). After the completion of the additional issue, the company‘s share
capital increased to 72,548,200 shares, which was verified by [No. XYZH/2020CDA30002] ―Capital
Verification Report‖ issued by Shine Wing Certified Public Accountants (LLP), and the Company‘s
shareholding ratio was 63.2683%.
2) Sichuan Hongmei Intelligent Technology Co., Ltd. (hereinafter referred to as Hongmei Intelligent)
was established on Jan. 24, 2014. It is a limited company jointly invested by the Company and
Mianyang Meiling Refrigeration Co., Ltd., being approved by the Industrial and Commerce Bureau of
Peicheng District, Mianyang City. The company owes registered capital of RMB 5 million, including
RMB 4.95 million contributed by Changhong Meiling Company in cash, accounted for 99% of the
registered capital; Mianyang Meiling Refrigeration Co., Ltd. contributed RMB 50000 in cash with 1%
of the register capital occupied. The above mentioned register capital have been verified by
verification report of Chuanjinlai Yanzi No. [2014] B039 issued by Sichuan Jinlai Accounting Firm
Co., Ltd. In July 2016, the shares of Hongmei Intelligent, held by the Company has transferred to
Sichuan Changhong AC Co., Ltd., after transferred, Changhong AC has 99% equity of Hongmei
Intelligent, the Company has no shares of Hongmei Intelligent directly.
3) Mianyang Meiling Refrigeration Co., Ltd. (hereinafter referred to as Mianyang Meiling), a limited
liability company jointly set up by the Company and China-tech Meiling Company, was founded on
Mar. 6, 2009. Its registered capital and paid-in capital were RMB 50 million upon establishment, of
which, the Company invested RMB 45 million, accounting for 90% of the registered capital; Zhongke
Meiling Company invested RMB 5 million, accounting for 10% of the registered capital. The capital
receipt was verified by the verification report [CXKY (2009) No. 008] of Sichuan Xingrui Certified
Public Accountants. On 19 January 2011, the Company increase RMB 50 million in capital of
Mianyang Meiling, of which RMB 95 million invested by the Company, a 95% of total register capital
while RMB 5 million invested by Zhongke Meiling, a 5% of total capital occupied. The paid-in capital
has been verified by Capital Verification Report［XYZH/2010CDA6040］from Chengdu Branch of
Shinewing CPA CO., Ltd. In 2011, Zhongke Meiling entered into ―Equity Transfer Agreement‖ with
Jiangxi Meiling Refrigeration Co., Ltd. 5 percent equity of Mianyang Meiling held by Zhongke
Meiling was transferred to Jiangxi Meiling Refrigerator. In September 2013, Jiangxi Meiling
Refrigeration was combined by Jiangxi Meiling Electric Appliance Co., Ld, than 5 percent equity was
340
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
transfer to Jiangxi Meiling Electric Appliance.
4) Jiangxi Meiling Electric Appliance Co., Ltd. (hereinafter referred to as Jiangxi Meiling Electric
Appliance) was a limited liability company jointly established by the Company and Mianyang Meiling
on 23 May 2011. Register capital of the company totally as RMB 50 million, RMB 49.375 million
invested by the Company, 98.75% in total register capital while RMB 0.625 million invested by
Mianyang Meiling , a 1.25% in total register capital occupied. The initial investment RMB 10.50
million was received dated 13 May 2011 with RMB 10 million from the Company and RMB 0.5
million from Mianyang Meiling. Rest of the capital shall be invested fully within 2 years after the joint
ventures established according to capital requirement. The initial investment capital were verified by
the Capital Verification Report [JXKYZi (2011) No. 090] issued from Jingdezhen Xingci CPA Co.,
Ltd. Second capital RMB 39.5 million was fully funded on 28 July 2011, the Company contributed
RMB 39.375 million while Mianyang Meiling Company invested RMB 125,000, the contributions
have been verified by the capital verification report [Jing Xing Kuai Yan Zi (2011) No.: 134] issued
from JDZ Xingci CPA Co., Ltd.
5) Hefei Meiling Wulian Technology Co., Ltd. (hereinafter referred to as Wulian Technology) was
established dated 21 January 2019 with registered capital of RMB 10 million, and it is the subsidiary of
the Company with fully-owned establishment. As of December 31, 2020, paid in capital is 6 million
yuan
6) Hefei Meiling Electric Appliances Marketing Co., Ltd (hereinafter referred to as Meiling
Marketing) is the limited company jointly invested by the Company and Mianyang Meiling Company
on 21 Oct. 2009. Registered capital and paid-up capital were RMB 10 million, including RMB 9.9
million invested by the Company, a 99% of the registered capital; Mianyang Meiling Company
contributed RMB 0.1 million, a 1% of the registered capital. The above mentioned paid-up register
capital have been verified by verification report of [Wan An Lian Xin Da Yan Zi (2009) No. 074]
issued by Anhui An Lian Xin Da Accounting Firm Co., Ltd. On 25 Nov. 2010, the Company increased
capital RMB 45 million, registered capital amounting to RMB 55 million, including RMB 54.9
million contributed by the Company, a 99.82% of the registered capital, while Mianyang Meiling
invested RMB 0.1 million, a 0.18% of the registered capital. The increased capital has been verified
by verification report of [Wan Hua Shen Zheng Da Kuai Yan Zi (2010) No. 1514] issued by Anhui
Hua Shen Zhengda CPA Co., Ltd.
7) Jinan Xiangyou Electric Appliances Marketing Co., Ltd (hereinafter referred to as Jinan
Xiangyou) was established dated 3 June 2011 with registered capital of RMB 3 million; Meiling
341
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
Marketing invested RMB 1.08 million, accounted for 36% of the registered capital; after Meiling
Marketing acquired 55.4% equity interests from the minority shareholders in 2015, Meiling Marketing
totally holds 91.4% equity of the Jinan Xiangyou, In 2019, minority shareholders step out, shares of
Jinan Meiling hold by Meiling Marketing changed to 93.4%.
8) Wuhan Meizirong Electrical Marketing Co., Ltd (hereinafter referred to as Wuhan Meizirong) was
established dated 10 January 2011 with registered capital of RMB 5 million; Meiling Marketing invested
RMB 4.60 million, accounted for 92% of the registered capital.
9) Zhengzhou Meiling Electric Appliances Marketing Co., Ltd (hereinafter referred to as
Zhengzhou Meiling) was established dated 17 January 2011 with registered capital of RMB 3 million;
Meiling Marketing invested RMB 1.08 million, accounted for 36% of the registered capital. In 2013,
Meiling Marketing purchased 10% equity from minority; Meiling Marketing signed equity transfer
agreement with the minority shareholders in April 2015, to acquire as the transferee the 39% equity
interests of Zhengzhou Meiling held by minority shareholders, Meiling Marketing acquired 10%
equity interests from the minority shareholders in February 2016; and after acquiring 5% equity from
minority in 2017, Meiling Marketing totally holds 100% equity of Zhengzhou Meiling.
9) Taiyuan Meiling Electric Appliances Marketing Co., Ltd. (hereinafter referred to as Taiyuan
Meiling) was established dated 18 January 2011 with registered capital of RMB 4 million; Meiling
Marketing invested RMB 1.59 million, accounted for 39.75% of the registered capital; after Meiling
Marketing purchased 45.5% equity from minority in 2013, after purchased 14.75% equity from
minority in 2016, Meiling Marketing totally holds 100% equity of the Taiyuan Meiling.
11) Guangzhou Meiling Electric Appliances Marketing Co., Ltd. (hereinafter referred to as
Guangzhou Meiling) was established dated 13 May 2011 with registered capital of 5 million Yuan;
Meiling Marketing invested 4.3 million Yuan, accounted for 86% of the registered capital; after
Meiling Marketing acquired 12% equity interests from the minority shareholders in 2014, Meiling
Marketing totally held the 98% equity interests of Guangzhou Meiling.
12) Tianjin Meiling Electric Appliances Marketing Co., Ltd. (hereinafter referred to as Tianjin
Meiling) was established dated 2 March 2011 with registered capital of 3 million Yuan; Meiling
Marketing invested 2.565 million Yuan, accounted for 85.5% of the registered capital; In 2015,
Meiling Marketing and Jiangxi Meiling Appliances entered into equity transfer agreements with
minority shareholders respectively, to acquire as the transfers the 14.1% and 0.4% equity interests of
Tianjin Meiling held by minority shareholders. Upon completion of equity transfer in December 2015,
Meiling Marketing totally held the entire equity interests of Tianjin Meiling.
342
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
13) Hefei Meiling Nonferrous Metal Products Co., Ltd. (hereinafter referred to as Nonferrous Metal)
was the Sino-foreign joint venture jointly set up by original Meiling Group, Hefei Meiling Copper Co., Ltd. And
Singapore Kim Shin Development Co., Ltd., which have been originally approved by the [WJMWFZZ
(1996) No.349] of Foreign Trade and Economic Committee of Anhui Province. Its registered capital
was US$ 2.92 million upon establishment, of which, original Meiling Group invested US$ 1.46
million (monetary capital), accounting 50% of the registered capital, Hefei Meiling Copper Co., Ltd
invested US$ 0.584 million (monetary capital of RMB 0.18 million and real assets of US$ 0.404 million),
accounting 20% of registered capital while Singapore Kim Shin Development Co., Ltd invested US$ 0.876
million (monetary capital), accounting 30% of the registered capital. The above mentioned investment
verified by the verification report of [HSWZ (1995) No. 0737], [HSWZ (1996) No. 328] and [HSWZ
(1998) No. 088] from Anhui CPAs Co., Ltd. In July 2008, approved by [HWS (2008) No.53] from
Foreign Trade Economic Cooperation Bureau of Hefei City, 30% equity and 20% equity held by
Singapore Kim Shin Development Co., Ltd and Hefei Meiling Copper Co., Ltd respectively transferred to
original Meiling Group Totally. The Company‘s register capital came into RMB 24,286,808.00 after
transference, and was not the joint-venture any more.
14) Changhong Meiling Ridian Technology Co., Ltd. (hereinafter referred to as Ridian Technology) is
a limited liability company invested and established by Sichuan Changhong Electric Co., Ltd.
(hereinafter referred to as Sichuan Changhong) and Sichuan Changhong Motor Transport Co., Ltd.
(hereinafter referred to as Changhong Motor Transport Company) on May 25, 2016. The registered
capital and paid-in capital are RMB 40 million Yuan, of which Sichuan Changhong has invested 32
million Yuan by monetary capital, accounting for 80% of the registered capital; Changhong Motor
Transport Company has invested 8 million Yuan, accounting for 20% of the registered capital. The
official receipts of registered capital have been verified by original Sichuan Junhe Accounting Firm
[No. JHYZ (2006) 3027]. Ridian Technology increased registered capital of 43 million Yuan on
January 4, 2007, changing from 40 million Yuan to 83 million Yuan , for the newly increased 43
million Yuan , Sichuan Changhong invested 1.8 million Yuan , Guangdong Xiongfeng Electric Co.,
Ltd. invested 40 million Yuan , and Kou Huameng and other 9 natural person shareholders invested
1.2 million Yuan , at the same time, the shareholders' meeting considered and agreed to transfer the
investment of 8 million Yuan of Changhong Motor Transport Company to Sichuan Changhong
Venture Investment Co., Ltd, the structure of the registered capital after changes was that Sichuan
Changhong invested 33.8 million Yuan , accounting for 40.72%；Guangdong Xiongfeng Electric Co.,
Ltd. invested 40 million Yuan , accounting for 48.19%; Sichuan Changhong Venture Investment Co.,
Ltd Invested 8 million Yuan , accounting for 9.64%; Kou Huameng and other 9 natural person
shareholders invested 1.2 million Yuan , accounting for 1.45%. The change of registered capital was
verified by Zhongshan Promise Accounting Firm [No. ZCHZ (2007)501010].
343
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
On February 18, 2009, seven natural person shareholders transferred total 0.76% stock rights to Hu
Zhiheng, after the transfer, the registered capital of Changhong Ridian was still 83 million Yuan , the
structure of registered capital after changes was that Sichuan Changhong invested 33.8 million Yuan ,
accounting for 40.72%; Guangdong Xiongfeng Electric Co., Ltd. invested 40 million Yuan ,
accounting for 48.19%; Sichuan Changhong Venture Investment Co., Ltd invested 8 million Yuan ,
accounting for 9.64%; Hu Zhiheng and other two natural person shareholders invested 1.2 million
Yuan , accounting for 1.45%.
On October 9, 2014, Changhong Ridian held the shareholders meeting which considered and agreed
Kou Huameng to transfer its stock rights of total 250,000 Yuan which accounts for 0.301% of the
Ridian Technology‘s registered capital to Sichuan Changhong Venture Investment Co., Ltd at the cost
of 317,802 Yuan. The other shareholders of the Ridian Technology waived the right of pre-emption.
On December 11, 2014, Ridian Technology held the shareholders meeting which considered and
agreed Guangdong Xiongfeng Electric Co., Ltd. to transfer its stock rights of total 40 million Yuan
which accounts for 48.19 % of the company's registered capital to Sichuan Changhong Electric Co.,
Ltd. at the cost of 43,977,300 Yuan. The other shareholders of the Ridian Technology waived the
right of pre-emption. The structure of registered capital after changes was that Sichuan Changhong
invested 73.8 million Yuan, accounting for 88.92%; Sichuan Changhong Venture Investment Co., Ltd
Invested 8.25 million Yuan, accounting for 9.94%; Hu Zhiheng and another natural person shareholder
invested 950,000 Yuan , accounting for 1.14%.
On 4 January 2016, Sichuan Changhong and Sichuan Changhong Venture Investment Co., Ltd.
transferred total 98.855% equity of the Ridian Technology to the Company. After the transfer, the
Company directly holds 98.855% stock rights of Ridian Technology.
On 7 April 2020, Ridian Technology convened the shareholders‘ meeting, and agreed the Wu
Changyuan to transferred total 0.18% equity of the Ridian Technology to the Company. After the
transfer, the Company directly holds 99.0361% stock rights of Ridian Technology.
15) CHANGHONG MEILING ELECTRIC INDONESIA, PT.(hereinafter referred to as Indonesia
Changhong) is a subsidiary established in Indonesia and jointly invested by Zhongshan Changhong
and Sichuan Changhong in 2016, the company‘s registered capital is 6 million US dollars, of which
Zhongshan Changhong subscribed and paid 5.88 million US dollars in cash, accounting for 98% of the
registered capital, Changhong Air Conditioning subscribed and paid 120,000 US dollars in cash,
accounting for 2% of the registered capital. On 4 July 2017, rests of the 2.94 million US dollars are
subscribed by Zhongshan Changhong in line with the agreement.
16) Changhong Ruba Trading Company (Private) Limited (hereinafter referred to as Changhong Ruba)
344
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
was a joint venture established by Zhongshan Changhong Appliances Company Limited and RUBA
GENERAL TRADING FZE Company (―RUBA‖) on 5 August 2011 with the approval from
Guangdong Development and Reform Commission by issuance of the Approval Relating to Joint
Construction of a Manufacturing and Selling Platform Project in Pakistan by Zhongshan Changhong
Appliances Company Limited (YFGWZ(2011)958). The resolution of the second extraordinary
shareholders' meeting of Zhongshan Changhong in 2016 passed the "Proposal on the Company's
Capital Increase to Changhong Ruba Trading Company (Private) Limited", and agreed that the
company and UAE RUBA Company jointly increase capital to Changhong Ruba Trading
Company(Private) Limited which was invested by both sides in Pakistan at an earlier stage,
Zhongshan Changhong invested 3.84 million US dollars in this capital increase, and UAE RUBA
Company invested 2.56 million US dollars, the shares held by both sides remained unchanged. After
the capital increase, the company‘s registered capital became 12.4 million US dollars, of which
Zhongshan Changhong Home Appliances Company Limited invested 7.44 million US dollars in cash,
shareholding ratio was 60%, UAE RUBA Company invested 4.96 million US dollars in cash, and
shareholding ratio was 40%.
17) Sichuan Changhong Air Conditioning Co., Ltd.(hereinafter referred to as Changhong Air
Conditioner), a limited liability company jointly set up by Sichuan Changhong and Changhong
Chuangtou, was founded on November 28, 2008. Its registered capital was RMB 200 million upon
establishment, of which, Sichuan Changhong invested RMB 298 million (RMB 210,088,900 invested
by monetary capital while RMB 87,911,100 invested by real material), equivalent to RMB 198 million
shares, accounting for 99% of the registered capital; and Changhong Chuangtou invested RMB 3
million, accounting for 1% of the registered capital with equivalent of RMB 2 million shares. The
registered capital receipt was verified by the verification report [CGYYZ (2008) No. 177] of Sichuan
Guangyuan Certified Public Accountants Co., Ltd. and [HLTHYZ (2008) No. 12-006] of Sichuan
Henglitai Certified Public Accountants Co., Ltd. In December 2009, the Company obtained 100%
equity of Changhong Air-conditioner by consolidated under the same control. In 2017, the Company
increased capital of 650 million Yuan to Changhong Air Conditioner, after capital increased, registered
capital of Sichuan Changhong comes to 850 million Yuan from 200 million Yuan, shareholding still
counted as 100%.
18) Zhongshan Changhong Electric Co., LTD (hereinafter referred to as Zhongshan Changhong), was
the original Guangdong Changhong Electric Co., Ltd., and is a limited liability company jointly set up
by Sichuan Changhong and China Minmetals on May 22, 2001. Its registered capital was RMB 80
million upon establishment, of which, Sichuan Changhong invested RMB 72 million, including RMB
69.3 million biding for the estate/ non-estate from original Zhongshan Sanrong Air-conditioner Co.,
Ltd. And its patent use-right of RMB2.7 million, accounting for 90% of the registered capital; Chine
345
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
Minmetals invested RMB 8 million in monetary capital accounting 10% of the registered capital. The
Company changed its name originally from Guangdong Changhong Electric Co., Ltd in July 2003. In
December 2009, the Company obtained 90% equity of Zhongshan Changhong by consolidated under
same control. 10% equity held by China Minmetals has been transferred by Changhong
Air-conditioner on April 11, 2010. On 25 May 2014, the Company increased RMB 36 million to
Zhongshan Changhong, and Changhong AC increased RMB 4 million. In 2016, according to the
overseas development strategy of the Company and the development and operation needs of the
subsidiaries, the Company and the wholly-owned subsidiary Changhong Air Conditioning have
increased capital of RMB 64 million Yuan to Zhongshan Changhong according to the existing
shareholding ratio, among which the capital increase of the Company was RMB 57.6 million Yuan,
and the capital increase of Changhong Air Conditioning was RMB 6.4 million Yuan. After the
completion of this capital increase, the registered capital Zhongshan Changhong shall increase to
RMB 184 million Yuan, the shareholding ratio of the company and Changhong Air Conditioning
remained unchanged and was still 90% and 10%, of which the Company invested 165.6 million Yuan,
accounting for 90% of the registered capital, Changhong Air Conditioning invested 18.4 million Yuan,
accounting for 10% of the registered capital. In March 2020, in accordance with the Company‘s
overseas development strategy and the operation and development needs of its subsidiaries, the
Company and its wholly-owned subsidiary Changhong Air Conditioning increased capital of RMB
150 million to Zhongshan Changhong according to the existing shareholding ratios, of which the
Company increased capital of RMB 135 million, Changhong Air-Conditioning increased capital of
RMB 15 million. After the completion of capital increase, the registered capital of Zhongshan
Changhong has increased to RMB 334 million. The Company‘s and Changhong‘s shareholding ratios
in Zhongshan Changhong remain unchanged at 90% and 10%, of which the Company funded RMB
300.6 million, accounting for 90% of the registered capital, while Changhong Air Conditioning funded
RMB 33.4 million, accounting for 10% of the registered capital.
19) Hefei Meiling Group Holdings Limited (hereinafter referred to as Meiling Group), was the
state-owned company originally approved by People‘s Government of Hefei Province and established authorized
by SASAC of Hefei City. On July 14, 2008, 100% state-owned equity of Meiling Group has freely
transferred to Xingtai Holding by Hefei SASAC. Agreement by the approval of < State-owned
property agreement transfer from Meiling Group> [ HGZCQ (2010) No.34] of Hefei SASAC on April
9, 2010, 100% state-owned property of Meiling Group after partial assets and liabilities separated
transferred to the Company from Xingtai Holding as amount of RMB 113.2 million. The
re-registration of industrial and commercial procedure for Meiling Group after separated partial assets
liability has finished on July 28, 2010. The new Meiling Group has register capital of RMB 80 million,
and has been verified by the [AD (2010) YZD No. 016] from Anhui Auding CPAs Co., Ltd.
346
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
20) Meiling Equator Household Appliance (Hefei) Co., Ltd.( hereinafter referred to as Equator Household
Appliance) was the Sino-foreign joint venture jointly set up by original Meiling Group and EQUATOR
INVESTMENTS (USA) INC.( EQUATOR for short), which have been approved by the
[SWZWFZZ(2004) No.0103] of Approval Certificate of Foreign Enterprise from People‘s
Government of Anhui Province. Its registered capital was US$ 3 million upon establishment, of which,
Sino company invested US$ 2.25 million in machinery equipment, accounting 75% of the registered
capital while foreign company invested US$ 0.5 million in monetary capital and US$ 0.25 million in
intangible assets, amounting to US$0.75 million, accounting 25% of the registered capital. The above
mentioned investment verified by the verification report of [WYAYZ (2004) No. 135] from Anhui
Yongan CPAs Co., Ltd. In July 2007, approved by [HWJ (2007) No.136] from Foreign Trade
Economic Cooperation Bureau of Hefei City, 25% equity held by EQUATOR transferred to Anhui
Meiling Electric Co., Ltd. Totally. The Company‘s register capital came into RMB 24,793,200 after
transference, and was not the joint-venture any more. 25% equity owned by Anhui Meiling Electric
Co., Ltd has been transferred totally to original Meiling Group in July 2009.
21) Hefei Equator Appliance Co., Ltd.(hereinafter referred to as Equator Appliance) was jointly set up by
original Meiling Group and Yingkaite Appliance on September 26, 2007. Its register capital was RMB 12
million, among which, original Meiling Group invested 8,670,600 Yuan in monetary capital,
accounting 72.255% in registered capital; Equator Appliance invested 3,329,400 Yuan in the
assessment value of intangible assets (land-use right), accounting 27.745% of total registered capital.
The investment being verified by [WYAZ (2004) No. 135] from Anhui Yongan CPAs Co., Ltd.
22) Hongyuan Ground Energy Heat Pump Technology Co., Ltd. (hereinafter referred to as Hongyuan
Ground Energy) was established on 28 August 2015, it is a limited liability company authorized by
Administration for Industry and Commerce of Peicheng District, Mianyang, Sichuan, contributed by
Sichuan Changhong Air Conditioner Co., Ltd (hereinafter referred to as Changhong Air Conditioner)
and Hengyouyuan Technology Development Group Co., Ltd. together. Registered capital amounted as
50 million Yuan, including 25.5 million Yuan contributed by Changhong Air Conditioner in cash, a 51%
in total registered capital; Hengyouyuan Technology Development Group Co., Ltd. invested 24.5
million Yuan in cash, a 49% in registered capital.
23) Hongyuan Ground Energy Heat Pump Tech. (Zhongshan) Co., Ltd.(hereinafter referred to as
Hongyuan Zhongshan) was established and invested on 18 July 2017 with registered capital of 15
million Yuan, The Hongyuan Ground Energy Heat Pump Tech. Co., Ltd contributed 1.5 million Yuan
with own funds and takes 100% in the registered capital.In 2018, the shareholdes of the Hongyuan
Zhongshan decided to increase capital of 30 million Yuan, and contributed by the shareholder
Hongyuan Ground Energy; thus registered capital of Hongyuan Zhongshan up to 45 million Yuan
347
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
24) Meiling Candy Washing Machine Co., Ltd. (hereinafter referred to as Meiling Candy) was
established and registered on 27 April 2017, which was contributed by the Company and Candy
Hoover Group S.r.l. together. Registered capital counted as 150 million Yuan, including 90 million
Yuan invested by the Company, a 60% in registered capital.
25) Guangzhou Changhong Trading Co., Ltd. (hereinafter referred to as Changhong Trading) was
established on 6 Jan. 2017, the wholly-owned subsidiary of Zhongshan Changhong Electric Co., LTD
(hereinafter referred to as Zhongshan Changhong) with registered capital of one million Yuan
26) Hebei Hongmao Household Appliance Technology Co., Ltd (hereinafter referred to as Hebei
Hongmao) was established on 21 July 2017 with registered capital of 5 million Yuan. Changhong
Ridian invested 5 million Yuan by own fund and takes 100% in registered capital.
27) Anhui Tuoxing Technology Co., Ltd. (hereinafter referred to as Tuoxing Technology) was
established on 20 May 2019 with registered capital of 10 million Yuan and it is the subsidiary of
Zhongke Meiling with fully-owned establishment. As of December 31, 2020, actually 5 million yuan
contributed.
28) CH-Meiling.International (Philippines) Inc. was established on 13 February 2020 in Philippines
with registered capital of US$ 1,000,000, takes 100% of the equity. As of December 31, 2020, the
Company has invested US$ 1,000,000,
29) Hefei Changhong Meiling Life Electric Co., Ltd was established on 24 December 2020, jointly
established by the Company and Ningbo Hongling Enterprise Management Partnership (Limited
Partnership). the Company contributed 35 million yuan, representing 70% of the equity while 15
million yuan invested by Ningbo Hongling Enterprise Management Partnership (Limited Partnership),
a 30% takes in the equity.
(2) Major non-wholly-owned subsidiary
Gains/losses Dividend distributed
Balance of
Shareholding ratio attributable to to minority
Subsidiary minority’s interest at
of minority minority in Current announced in
year-end
Year Current Year
Zhongke Meiling 36.73% 16,912,259.50 4,796,676.00 68,814,126.04
Hongyuan Ground
49.00% -2,614,269.79 17,111,800.28
Energy
Ridian Technology 0.96% 395,230.53 600,000.00 1,288,826.12
(3) Financial information for major non-wholly-owned subsidiary
348
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
Balance atyear-end
Subsidiary Non-current
Current assets Non-current assets Total assets Current liability Totalliabilities
liability
Zhongke
386,201,073.54 133,596,263.07 519,797,336.61 323,587,127.53 8,867,591.28 332,454,718.81
Meiling
Hongyuan
110,464,175.51 25,279,044.46 135,743,219.97 100,181,345.93 639,832.66 100,821,178.59
Ground Energy
Ridian
572,516,245.87 50,889,561.24 623,405,807.11 488,419,038.99 484,047.64 488,903,086.63
Technology
(Continued)
Balance atyear-begin
Subsidiary Non-current
Current assets Non-current assets Total assets Current liability Totalliabilities
liability
Zhongke
173,698,258.09 135,802,000.42 309,500,258.51 146,202,370.20 8,938,774.23 155,141,144.43
Meiling
Hongyuan
72,495,161.24 29,851,452.34 102,346,613.58 59,872,173.74 2,217,153.99 62,089,327.73
Ground Energy
Ridian
469,012,870.35 55,302,405.39 524,315,275.74 368,560,861.13 171,540.99 368,732,402.12
Technology
(Continued)
Current Year
Subsidiary Total comprehensive Cash flow from
Operation income Net profit
income operation activity
Zhongke
372,599,049.12 46,042,179.72 46,042,179.72 140,128,507.32
Meiling
Hongyuan
Ground 269,504,660.68 -5,335,244.47 -5,335,244.47 51,692,147.85
Energy
Ridian
1,083,259,433.15 41,169,846.86 41,169,846.86 51,830,916.29
Technology
(Continued)
Last Year
Subsidiary Total comprehensive Cash flow from
Operation income Net profit
income operation activity
Zhongke
222,867,915.68 16,517,245.60 16,517,245.60 42,134,505.66
Meiling
Hongyuan
Ground 405,759,143.48 5,360,622.82 5,360,622.82 3,492,950.80
Energy
Ridian
629,710,961.93 19,614,873.59 19,614,873.59 131,645,676.68
Technology
349
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
(4) Major limitation on using enterprise group‘s assets and liquidate debts of enterprise group: nil
(5) Offering financial supporting or other supports for structured entity that included in consolidation
statement scope: nil
2. Changes of owner‘ equity shares in subsidiary and its impacts
Ridian
Item Wuhan Meizirong Chengdu Meiling Shanghai Meiling Total
Technology
Original ratio of
98.86% 91.00% 96.00% 99.00%
shares held
Equity purchased
0.18% 1.00% 4.00% 1.00% 6.18%
from minority
Share issuance
Ratio of shares
99.04% 92.00% 100.00% 100.00%
held at period-end
Cost of purchasing
280,049.17 50,000.00 1.00 1.00 330,051.17
minority equity
Less: Ratio of the
net assets measured
by equity ratio 290,387.46 -40,281.25 -450,354.49 -119,871.42 -320,119.70
while acquiring the
subsidiary
Equity dilution for
shares issuance
Balance -10,338.29 90,281.25 450,355.49 119,872.42 650,170.87
Including: Capital
public reserve -10,338.29 90,281.25 450,355.49 119,872.42 650,170.87
adjusted
In 2020, due to the acquisition of minority shareholders‘ equity in a subsidiary - Changhong Meiling Ridian
Technology Co., Ltd, there is no difference between the newly acquired long-term equity investment and the share of
net assets of the subsidiary calculated on an ongoing basis from the date of purchase based on the newly acquired
shareholding.
In 2020, due to the acquisition of minority shareholders‘ equity of Wuhan Meizirong Electrical Marketing Co., Ltd by
subsidiary, the difference between the newly acquired long-term equity investment and the share of net assets of the
subsidiary calculated on an ongoing basis from the date of purchase based on the newly acquired shareholding
amounted as 90,281.2 yuan, which was included in the capital reserves.
In 2020, due to the acquisition of minority shareholders‘ equity of Chengdu Meiling and Shanghai Meiling by the
subsidiary, the difference between the newly acquired long-term equity investment and the share of net assets of the
subsidiary calculated on an ongoing basis from the date of purchase based on the newly acquired shareholding
amounted as 570,227.91 yuan, which was included in the capital reserves.
3. Equity in joint venture or associate enterprise
(1) Major joint venture or associate enterprise
350
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
Shareholding Accounting
ratio（%) treatment for
Main office Registe Business investment of
Joint venture or associate enterprise place r place nature Direct Indire joint venture or
ly ctly associate
enterprise
Associated companies：
1.ChanghongRubaElectricCompany Lahore, Manufactures,
Lahore 40.00 Equity
(Private)Ltd. Pakistan sales
2.Hefei Xingmei Assets Management Co., Rental,
Hefei Hefei 48.28 Equity
Ltd. agency
3.Sichuan Zhiyijia Network Technology
Mianyang Mianyang Sales 50.00 Equity
Co., Ltd.
4.Hongyuan Ground Energy Heat Tech. R & D, sales,
Mianyang Mianyang 49.00 Equity
Co., Ltd. after-sales
5.Sichuan Tianyou Guigu Technology Co., Manufactures,
Mianyang Mianyang 25.00 Equity
Ltd. sales
R&D,
6.Chengdu Guigu Environmental Tech. Co.,
Chengdu Chengdu manufacturin 25.00 Equity
Ltd.
g and sales
(2) Financial information for major Joint venture: nil
(3) Financial information for associate enterprise
Balance at year-end /Current Year
Hefei Xingmei Hongyuan Sichuan Tianyou
Item ChanghongRubaEl Sichuan Zhiyijia Chengdu Guigu
Assets Ground Energy Guigu
ectricCompany(Pri Network Technology Environmental
Management Heat Tech. Co., Technology Co.,
vate)Ltd. Co., Ltd. Tech. Co., Ltd.
Co., Ltd. Ltd. Ltd.
Current assets 68,287,114.60 626,580.92 3,812,812,831.86 40,622,241.47 21,480,727.03 17,707,474.44
Including: cash and
5,536,272.95 119,477.66 2,996,535,171.99 52,958.51 10,450,786.16 2,371,663.95
cash equivalent
Non-current assets 45,830,745.35 18,704,537.29 1,226,646.52 10,161,277.73 12,352.49 13,175,012.62
Total assets 114,117,859.95 19,331,118.21 3,814,039,478.38 50,783,519.20 21,493,079.52 30,882,487.06
Current liability 129,084,729.80 5,192,189.07 3,724,855,931.57 5,562,937.27 10,075,118.54 19,463,087.16
Non-current
117,900.00 1,886,933.19
liability
Total liabilities 129,084,729.80 5,192,189.07 3,724,973,831.57 5,562,937.27 10,075,118.54 21,350,020.35
Minority's interest 822,750.86
Equity attributable
to shareholder of -14,966,869.86 14,138,929.14 89,065,646.81 45,220,581.93 11,417,960.98 8,709,715.85
parent company
Share of net assets
measured by -5,986,747.94 6,826,274.99 44,532,823.41 22,158,085.15 2,854,490.25 2,177,428.96
shareholding
Adjustment
--Goodwill 821,877.28 3,887,027.34
351
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
Balance at year-end /Current Year
Hefei Xingmei Hongyuan Sichuan Tianyou
Item ChanghongRubaEl Sichuan Zhiyijia Chengdu Guigu
Assets Ground Energy Guigu
ectricCompany(Pri Network Technology Environmental
Management Heat Tech. Co., Technology Co.,
vate)Ltd. Co., Ltd. Tech. Co., Ltd.
Co., Ltd. Ltd. Ltd.
Unrealized profit of
the internal
49,697.83 6,191,361.16 54,975.58 4,398.74 24,449.53
downstream
transactions
Unrealized profit of
the internal
upstream
transactions
Other 5,937,050.11
Book value of the
equity investment
6,826,274.99 39,163,339.53 22,103,109.57 2,850,091.51 6,040,006.77
for associate
enterprise
Fair value of equity
investment for the
affiliates with
consideration
publicly
Operation income 99,936,478.74 8,580,600,638.78 54,153,864.35 735,204.43 12,146,793.64
Financial expenses 10,579,123.20 205,425.73 -36,003,354.14 3,384.58 -404,094.60 179,807.87
Income tax
1,422,278.04 3,181,576.89
expenses
Net profit -18,981,775.32 -3,579,823.40 8,132,610.22 -2,554,686.34 190,298.81 -8,962,600.48
Net profit of
discontinuing
operation
Other
comprehensive
income
Total
comprehensive -18,981,775.32 -3,579,823.40 8,132,610.22 -2,554,686.34 190,298.81 -8,962,600.48
income
Dividend received
from associate
enterprise in
Current Year
(Continued)
Balanceatyear-begin/LastYear
Hefei Xingmei Hongyuan
Item ChanghongRuba Sichuan Zhiyijia Sichuan Tianyou Chengdu Guigu
Assets Ground Energy
ElectricCompany( Network Technology Guigu Technology Environmental
Management Heat Tech. Co.,
Private)Ltd. Co., Ltd. Co., Ltd. Tech. Co., Ltd.
Co., Ltd. Ltd.
Current assets 104,632,500.22 1,833,902.21 3,365,539,682.22 46,101,621.41 21,254,869.83 18,277,711.92
Including: cash and 5,030,479.12 1,726,698.95 2,349,815,225.85 925,625.77 11,975,680.17 3,026,977.11
352
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
Balanceatyear-begin/LastYear
Hefei Xingmei Hongyuan
Item ChanghongRuba Sichuan Zhiyijia Sichuan Tianyou Chengdu Guigu
Assets Ground Energy
ElectricCompany( Network Technology Guigu Technology Environmental
Management Heat Tech. Co.,
Private)Ltd. Co., Ltd. Co., Ltd. Tech. Co., Ltd.
Co., Ltd. Ltd.
cash equivalent
Non-current assets 52,830,981.68 17,138,280.87 1,252,898.22 12,965,065.72 39,777.34 14,593,410.88
Total assets 157,463,481.90 18,972,183.08 3,366,792,580.44 59,066,687.13 21,294,647.17 32,871,122.80
Current liability 153,934,962.09 1,253,430.54 3,272,121,806.17 11,291,418.86 10,066,985.00 14,376,055.61
Non-current liability 651,580.00
Total liabilities 153,934,962.09 1,253,430.54 3,272,773,386.17 11,291,418.86 10,066,985.00 14,376,055.61
Minority's interest 1,059,268.80
Equity attributable
to shareholder of 3,528,519.81 17,718,752.54 94,019,194.27 47,775,268.27 11,227,662.17 17,435,798.39
parent company
Share of net assets
measured by 1,411,407.92 8,554,613.73 47,009,597.14 23,409,881.45 2,806,915.54 4,358,949.60
shareholding
Adjustment
--Goodwill 821,877.28 3,887,027.34
Unrealized profit of
the internal
393,075.11 2,223,966.56 34,940.80 4,691.99 28,751.02
downstream
transactions
Unrealized profit of
the internal upstream
transactions
Other -1,018,332.81
Book value of the
equity investment
8,554,613.73 45,607,507.85 23,374,940.65 2,802,223.55 8,217,225.92
for associate
enterprise
Fair value of equity
investment for the
affiliates with
consideration
publicly
Operation income 190,497,799.56 - 7,062,900,153.63 98,907,938.70 -285,926.94 34,249,377.30
Financial expenses 369,800.99 -5,725.41 -11,188,778.31 73.08 -486,373.04 279,703.22
Income tax expenses 2,656,027.23 1,244,095.42
Net profit -25,031,693.64 -1,792,637.83 3,755,397.84 528,794.11 -17,234,926.28 -3,921,022.61
Net profit of
discontinuing
operation
Other
comprehensive -2,111,831.07
income
353
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
Balanceatyear-begin/LastYear
Hefei Xingmei Hongyuan
Item ChanghongRuba Sichuan Zhiyijia Sichuan Tianyou Chengdu Guigu
Assets Ground Energy
ElectricCompany( Network Technology Guigu Technology Environmental
Management Heat Tech. Co.,
Private)Ltd. Co., Ltd. Co., Ltd. Tech. Co., Ltd.
Co., Ltd. Ltd.
Total comprehensive
-27,143,524.71 -1,792,637.83 3,755,397.84 528,794.11 -17,234,926.28 -3,921,022.61
income
Dividend received
from associate
enterprise in Current
Year
(4) Financial summary for non-important Joint venture and associate enterprise
Balance at year-end
Item Balance at year-begin /Last Year
/Current Year
Associated companies：
Total book value of investment
Total amount measured by shareholding
ratio
--Net profit -251,256.41 -380,361.99
--Other comprehensiveincome
-- Total comprehensiveincome -251,256.41 -380,361.99
(5) Major limitation on capital transfer ability to the Company from joint venture or affiliates: Nil
(6) Excess loss occurred in joint venture or affiliates: Nil
(7) Unconfirmed commitment with joint venture investment concerned: Nil
(8) Intangible liability with joint venture or affiliates investment concerned: Nil
4. Major conduct joint operation: Nil
5. Structured body excluding in consolidate financial statement: Nil
IX. Relevan t r isks re lated w ith financia l in stru men t
The major financial instruments of the Company include borrowings, account receivables, account
payable, tradable financial assets, tradable financial liability, the details of which are set out in Note VI.
Risks related to these financial instruments include exchange risks and interest rate risks. The
management of the Company controls and monitors the risk exposures to ensure the above risks are
under control.
In connection with exchange risks, in order to prevent from exchange risks arising from foreign
354
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
currency transaction amount, foreign currency dominated loans and interest expenditure, the Company
entered into several forward exchange contracts with banks. Fair value of the forward exchange
contract which has been recognized as derivative financial instrument has been included in profits and
losses. As export business is increasing, if risks that are out of control of the Company occur such as
appreciation of RMB, the Company will mitigate the relevant risks by adjusting its sales policy.
The Company‘s interest rate risk arises from bank borrowings and interest-bearing debt. Financial
liabilities at floating rate expose the Company to cash flow interest rate risk, and financial liabilities at
fixed rate expose the Company to fair value interest rate risk. The Company will determine the
respective proportion of contracts at fixed and floating rates based on the prevailing market conditions.
As of 31 December 2020, the interest-bearing debts mainly referred to borrowing contracts at floating
rate denominated in RMB with total amount of 1,335,420,000.00 Yuan, the floating rate loan contract
measured by RMB amounted as 495,000,000.00 Yuan in total; borrowing contracts at fixed rate
denominated in EUR with total amount of 76,237,500.00 Yuan; borrowing contracts at fixed rate
denominated in IDR with total amount of 16,280,000.00 Yuan. Risks relating to change of fair value
of financial instruments arising from movement of interest rate mainly related to bank borrowings at
fixed rate. As for borrowings at fixed rate, the Company aims to keep its floating rate. Risks relating to
change of cash flow of financial instruments arising from movement of interest rate mainly related to
bank borrowings at floating rate. The Company establishes its policy to keep floating rate for these
borrowings so as to eliminate fair value risk arising from movement of interest rate.
X. Fair va lue d isc losu re
1. Asset and liability measured by fair value at end of Current Year and fair value measurement level
F ai r v al u e at y e ar- e n d
Item st nd
1 level 2 level 3rd level Total
I. Continuous fair value
— — — —
measurement
(i)Trading financial assets 47,242,339.07 47,242,339.07
1.Financial assets measured at fair
value and whose changes are 47,242,339.07 47,242,339.07
included in current gains/losses
Including: Derivative financial
47,242,339.07 47,242,339.07
assets
(ii) Other non-current financial
43,148,931.34 505,000,000.00 548,148,931.34
assets
(iii)Receivables financing 1,632,388,702.83 1,632,388,702.83
Total assets continuously
47,242,339.07 43,148,931.34 2,137,388,702.83 2,227,779,973.24
measured at fair value
355
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
F ai r v al u e at y e ar- e n d
Item st nd
1 level 2 level 3rd level Total
(ii) Trading financial liability 4,584,076.51 4,584,076.51
1. Financial liabilities measured by
fair value and with variation
reckoned into current gains/losses
Including: Derivative financial
4,584,076.51 4,584,076.51
liability
Total liabilities continuously
4,584,076.51 4,584,076.51
measured at fair value
2. The basis for determining the market price of continuous and non-continuous first-level fair value
measurement items
The company's fair value measurement items are futures contracts and foreign exchange options. The
market price of futures contracts is determined based on the closing price of the futures contract at the
end of the period; the market price of foreign exchange options is determined based on the quotation
of contract products of the foreign exchange options at the end of the period.
3. Qualitative and quantitative information on the valuation techniques used and important parameters
for continuous and non-continuous second-level fair value measurement items
The fair value measurement items arelong-term investments in the fund companies. For long-term
investments in fund companies, the assessed book value can represent the best estimate of fair value
within the scope.
4. Qualitative and quantitative information on the valuation techniques used and important parameters
for continuous and non-continuous third-level fair value measurement items
The company‘s fair value measurement items are investments in Sichuan Changhong Group Finance
Co., Ltd. and Huishang Bank Co., Ltd. Since there is no active market quotation and no major changes
have been found in the investment until the reporting period, the investment cost represents the best
estimate of the fair value within the scope, so its cost is regarded as the fair value. Due to the short
remaining period of the receivables financing, the book value is close to the fair value, and the face
amount is used as the fair value.
XI. Related parties and related transaction
(I) Relationship of related parties
1. Controlling shareholder and ultimate controller
(1) Controlling shareholder and ultimate controller
356
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
Regist Share-holdin Voting rights
Controlling shareholder and Business
ration Registered capital g ratio in the ratio in the
ultimate controller nature
place Company Company
Sichuan Changhong Electric Co., Miany Manufactur
4,616,244,222.00 26.98% 26.98%
Ltd. ang e and sales
Sichuan Changhong Electronics Holding Group is the controlling shareholder of Sichuan Changhong
Electric Co., LTD, and the SASAC Mianyang office holds 100.00% equity interests of Sichuan
Changhong Electronic Holding Group, which means that SASAC Mianyang office is the ultimate
controller of the Company.
(2) Register capital and change thereof of controlling shareholder
Increase Decrease
Controlling shareholder Balance at year-begin Balance at year-end
this year this year
Sichuan Changhong Electric Co.,
4,616,244,222.00 4,616,244,222.00
Ltd.
(3) Shares held by the controlling shareholder and its changes on equity
Amount of shares held Shareholding ratio
Controlling shareholder Balance at Balance at Ratio at Ratio at
year-end year-begin year-end year-beginning
Sichuan Changhong Electric Co.,
281,832,434.00 281,832,434.00 26.98% 26.98%
Ltd.
2. Subsidiary
Found more in Note ―VIII. 1 (1) Enterprise group composition‖
3. Joint venture and associated enterprise
Major Joint venture and associated enterprise of the Company found more in Note ―VIII. 3 (1) major
joint venture and associated enterprise‖. Other Joint venture and associated enterprise that have related
transactions occurred with the Company in Current Year or occurred in last period, and with balance
results:
Joint venture and associated enterprise Relationship with the company
Hefei Meiling Solar Energy Technology Co., Ltd. Associated enterprise of subsidiary Meiling Group
ChanghongRubaElectricCompany(Private)Ltd. Associated enterprise of subsidiary Zhongshan Changhong
Hefei Xingmei Assets Management Co., Ltd. Associated enterprise of the Company
Associated enterprise of the Company, has the same
Sichuan Zhiyijia Network Technology Co., Ltd.
controlling shareholder and actual control of the Company
Associated enterprise of subsidiary Changhong
Hongyuan Ground Energy Heat Tech. Co., Ltd.
Air-conditioner
357
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
Joint venture and associated enterprise Relationship with the company
Associated enterprise of subsidiary Changhong
Sichuan Tianyou Guigu Technology Co., Ltd.
Air-conditioner
Associated enterprise of subsidiary Changhong
Chengdu Guigu Environmental Tech. Co., Ltd.
Air-conditioner
4.Other related party
Other related party Relationship with the company
Sichuan Changhong International Travel Service Co., Control by same controlling shareholder and ultimate
Ltd. controller
Control by same controlling shareholder and ultimate
Hunan Grand-Pro Intelligent Tech. Company
controller
Control by same controlling shareholder and ultimate
Mianyang Huafeng Interconnect Technology Co., Ltd.
controller
CHANGHONG ELECTRIC (AUSTRALIA) Control by same controlling shareholder and ultimate
PTY.LTD. controller
Control by same controlling shareholder and ultimate
CHANGHONG ELECTRIC MIDDLE EAST FZCO
controller
Control by same controlling shareholder and ultimate
Sichuan Changhong Electronic Products Co., Ltd.
controller
Control by same controlling shareholder and ultimate
BVCH Optronics (Sichuan) Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Hefei Changhong New Energy Technology Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Sichuan Changhong Mold Plastic Tech. Co., Ltd.
controller
Control by same controlling shareholder and ultimate
ChanghongEuropeElectrics.r.o
controller
Control by same controlling shareholder and ultimate
Changhong Huayi Compressor Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Sichuan Changhong Jijia Fine Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Sichuan Changhong Minsheng Logistics Co., Ltd.
controller
Sichuan Service Exp. Appliance Service Chain Co., Control by same controlling shareholder and ultimate
Ltd. controller
Sichuan Changhong Precision Electronics Tech. Co., Control by same controlling shareholder and ultimate
Ltd. controller
Control by same controlling shareholder and ultimate
PT.CHANGHONGELECTRICINDONESIA
controller
Control by same controlling shareholder and ultimate
CHANGHONG(HK)TRADINGLIMITED
controller
Control by same controlling shareholder and ultimate
Sichuan Changhong Device Technology Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Chengdu Changhong Electronic Technology Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Lejiayi Chain Management Co., Ltd.
controller
Sichuan Hongwei Technology Co., Ltd. Control by same controlling shareholder and ultimate
358
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
Other related party Relationship with the company
controller
Control by same controlling shareholder and ultimate
Sichuan Changhong Real Estate Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Sichuan Changhong New Energy Technology Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Hefei Changhong Industrial Co., Ltd.
controller
Changhong International Holdings (Hong Kong) Co., Control by same controlling shareholder and ultimate
Ltd. controller
Control by same controlling shareholder and ultimate
Guangdong Changhong Electronics Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Sichuan Changhong Package Printing Co., Ltd.
controller
Sichuan Changhong Jineng Sunshine Technology Co., Control by same controlling shareholder and ultimate
Ltd. controller
Control by same controlling shareholder and ultimate
Sichuan Changhong Power Source Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Sichuan Hongxin Software Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Sichuan Changhong Electronic System Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Sichuan Changhong Network Technology Co., Ltd.
controller
Mianyang Science & Technology City Big Data Control by same controlling shareholder and ultimate
Technology Co., Ltd. controller
Guangyuan Changhong Electronic Technology Co., Control by same controlling shareholder and ultimate
Ltd. controller
Control by same controlling shareholder and ultimate
Yuanxin Financial Lease Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Changhong Shundatong Tech. Development Co., Ltd.
controller
Sichuan Changhong Smart Health Technology Co., Control by same controlling shareholder and ultimate
Ltd. controller
Control by same controlling shareholder and ultimate
Orion.PDP.Co.,ltd
controller
Control by same controlling shareholder and ultimate
081 Electronic Group Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Sichuan Changhong International Hotel Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Sichuan Aichuang Science & Technology Co., Ltd.
controller
Sichuan Changhong Intelligent Manufacturing Control by same controlling shareholder and ultimate
Technology Co., Ltd. controller
Control by same controlling shareholder and ultimate
Sichuan Changhong Property Services Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Sichuan Huanyu Industrial Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Sichuan Jiahong Industrial Co., Ltd.
controller
359
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
Other related party Relationship with the company
Control by same controlling shareholder and ultimate
Sichuan Ailian Science & Technology Co., Ltd.
controller
Sichuan Changhong Gerun Environmental Protection Control by same controlling shareholder and ultimate
Tech. Co., Ltd. controller
Control by same controlling shareholder and ultimate
Sichuan Hongcheng Real Estate Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Sichuan Huafeng Enterprise Group Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Sichuan Changhong Group Finance Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Sichuan Changhong Education Technology Co., Ltd.
controller
Subsidiary of the associated enterprise of controlling
Beijing Changhong Tech. Co. Ltd.
shareholder
Associated enterprise of other enterprise that have the same
Sichuan Hongyu Metal Manufacturing Co., Ltd.
controlling shareholder
Sichuan Hongran Green Energy Co., Ltd. Associated enterprise of controlling shareholder
Sichuan Changxin Refrigeration Parts Co., Ltd. Associated enterprise of controlling shareholder
Mianyang Highly Electric Co., Ltd. Associated enterprise of controlling shareholder
Control by same controlling shareholder and ultimate
Sichuan Hongmofang Network Technology Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Sichuan Changhong Intelligent Technology Co., Ltd.
controller
(ii) Related transactions
(1) Purchasing commodity
Current Year Last Year
Related party Content (in 10 thousand (in 10 thousand
Yuan) Yuan)
Sichuan Changhong Mold Plastic Tech. Co.,
Purchasing commodity 59,503.77 63,000.18
Ltd.
Changhong Huayi Compressor Co., Ltd. Purchasing commodity 46,880.45 38,238.09
Sichuan Changhong Electric Co., Ltd. Purchasing commodity 34,964.57 33,598.70
Sichuan Changhong Jijia Fine Co., Ltd. Purchasing commodity 23,064.49 24,924.66
Sichuan Changxin Refrigeration Parts Co.,
Purchasing commodity 19,221.74 31,004.61
Ltd.
Mianyang Highly Electric Co., Ltd. Purchasing commodity 13,419.75 20,297.34
Sichuan Aichuang Science & Technology Co.,
Purchasing commodity 12,606.33 9,800.56
Ltd.
Changhong.Ruba.Electric.Company (Private)
Purchasing commodity 7,610.32 14,248.25
Ltd.
Sichuan Changhong Package Printing Co.,
Purchasing commodity 6,016.51 8,304.76
Ltd.
Changhong International Holdings (Hong
Purchasing commodity 2,655.02 39.47
Kong) Co., Ltd.
360
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
Current Year Last Year
Related party Content (in 10 thousand (in 10 thousand
Yuan) Yuan)
Sichuan Ailian Science & Technology Co.,
Purchasing commodity 1,796.54 2,073.65
Ltd.
Sichuan Changhong Electronic Products Co.,
Purchasing commodity 1,588.38 2,401.66
Ltd.
Sichuan Changhong Precision Electronics
Purchasing commodity 1,003.39 1,270.34
Tech. Co., Ltd.
Hunan Grand-Pro Intelligent Tech. Company Purchasing commodity 880.73 777.09
Hefei Changhong Industrial Co., Ltd. Purchasing commodity 632.25
Hongyuan Ground Energy Heat Tech. Co.,
Purchasing commodity 379.24 32.64
Ltd.
Sichuan Zhiyijia Network Technology Co.,
Purchasing commodity 371.14 96.01
Ltd.
Guangdong Changhong Electronics Co., Ltd. Purchasing commodity 293.63 233.81
081 Electronic Group Co., Ltd. Purchasing commodity 22.70 49.47
Sichuan Changhong Intelligent Manufacturing
Purchasing commodity 13.32 99.30
Technology Co., Ltd.
Sichuan Changhong New Energy Technology
Purchasing commodity 3.97 2.18
Co., Ltd.
Sichuan Changhong Electronics Holding
Purchasing commodity 1.78 9.11
Group Co., Ltd.
Guangyuan Changhong Electronic
Purchasing commodity 0.88 37.66
Technology Co., Ltd.
Lejiayi Chain Management Co., Ltd. Purchasing commodity 0.33 5.96
Sichuan Service Exp. Appliance Service
Purchasing commodity 0.19
Chain Co., Ltd.
Sichuan Jiahong Industrial Co., Ltd. Purchasing commodity 0.03
Sichuan Hongwei Technology Co., Ltd. Purchasing commodity 426.64
Sichuan Changhong International Hotel Co.,
Purchasing commodity 18.86
Ltd.
Sichuan Changhong Power Source Co., Ltd. Purchasing commodity 0.30
Sichuan Hongxin Software Co., Ltd. Purchasing commodity 16.98
Sichuan Changhong Property Services Co.,
Purchasing commodity 0.03
Ltd.
Sichuan Changhong Electronic System Co.,
Purchasing commodity 4.74
Ltd.
Sichuan Changhong Network Technology Co.,
Purchasing commodity 9.30
Ltd.
Sichuan Tianyou Guigu Technology Co., Ltd. Purchasing commodity -29.26
Chengdu Guigu Environmental Tech. Co.,
Purchasing commodity 6.46
Ltd.
Total 232,931.45 250,999.55
(2) Accept the services
361
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
Related party Content Current Year Last Year
Sichuan Changhong Minsheng Logistics Co., Ltd. Accept the services 414,991,661.95 437,841,044.49
Sichuan Service Exp. Appliance Service Chain Co.,
Accept the services 275,753,460.11 239,791,744.81
Ltd.
Sichuan Changhong Electric Co., Ltd. Accept the services 13,064,499.47 15,698,020.68
Sichuan Hongwei Technology Co., Ltd. Accept the services 4,359,668.84 372,168.84
Sichuan Changhong Property Services Co., Ltd. Accept the services 3,044,428.21 4,087,128.07
Sichuan Changhong Electronics Holding Group Co.,
Accept the services 1,428,582.09 683,104.41
Ltd.
Sichuan Hongxin Software Co., Ltd. Accept the services 1,120,832.04 344,269.80
Sichuan Changhong Jijia Fine Co., Ltd. Accept the services 1,002,110.60 38,056.39
Guangyuan Changhong Electronic Technology Co.,
Accept the services 640,277.20
Ltd.
Sichuan Jiahong Industrial Co., Ltd. Accept the services 533,487.03 70,777.77
Guangdong Changhong Electronics Co., Ltd. Accept the services 491,458.60 478,854.47
Sichuan Changhong Mold Plastic Tech. Co., Ltd. Accept the services 448,031.09 108,415.22
Sichuan Changhong International Travel Service Co.,
Accept the services 245,433.88 536,069.03
Ltd.
Sichuan Zhiyijia Network Technology Co., Ltd. Accept the services 185,590.06 2,961,015.42
Sichuan Changhong Gerun Environmental Protection
Accept the services 86,666.96
Tech. Co., Ltd.
Sichuan Changhong International Hotel Co., Ltd. Accept the services 51,449.87 146,160.13
Sichuan Changhong Network Technology Co., Ltd. Accept the services 32,908.38 45,698.47
Sichuan Changhong Intelligent Manufacturing
Accept the services 16,375.22 2,305,673.20
Technology Co., Ltd.
Sichuan Aichuang Science & Technology Co., Ltd. Accept the services 16,037.74
Sichuan Hongmofang Network Technology Co., Ltd. Accept the services 2,122.64
Sichuan Changhong Electronic Products Co., Ltd. Accept the services 450,488.09
081 Electronic Group Co., Ltd. Accept the services 420,000.00
Sichuan Ailian Science & Technology Co., Ltd. Accept the services 26,251.68
Total 717,515,081.98 706,404,940.97
(3) Purchase fuel and power
Related party Content Current Year Last Year
Sichuan Changhong Electric Co., Ltd. Accept fuel power 18,457,320.38 17,956,706.73
Guangdong Changhong Electronics Co., Ltd. Accept fuel power 1,122,776.22 1,429,349.92
Changhong Huayi Compressor Co., Ltd. Accept fuel power 511,235.41 825,915.60
Sichuan Hongran Green Energy Co., Ltd. Accept fuel power 488,435.52 855,091.21
Hefei Changhong New Energy Technology Co., Ltd. Accept fuel power 366,759.90 368,818.66
Sichuan Changhong Property Services Co., Ltd. Accept fuel power 20,789.37 21,883.45
362
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
Related party Content Current Year Last Year
Total 20,967,316.80 21,457,765.57
(4) Sales of goods/offering labor service
Current Year Last Year
Related party Content (in 10 thousand (in 10 thousand
Yuan) Yuan)
Sales of
Sichuan Zhiyijia Network Technology Co., Ltd. goods/offering 436,632.20 295,507.43
labor service
CHANGHONG (HK) TRADING LIMITED Sales of goods 48,410.22 36,912.93
Sales of
Sichuan Changhong Mold Plastic Tech. Co., Ltd. goods/offering 23,491.31 20,784.26
labor service
CHANGHONG ELECTRIC (AUSTRALIA)
Sales of goods 14,983.14 6,629.12
PTY.LTD.
Changhong International Holdings (Hong Kong) Co.,
Sales of goods 13,452.31 164.88
Ltd.
Sichuan Changxin Refrigeration Parts Co., Ltd. Sales of goods 6,957.18 10,028.00
Changhong Europe Electric s.r.o Sales of goods 5,483.90 166.90
Sales of
Sichuan Changhong Jijia Fine Co., Ltd. goods/offering 5,473.87 4,486.86
labor service
Hongyuan Ground Energy Heat Tech. Co., Ltd. Sales of goods 5,204.57 9,143.17
Orion.PDP.Co.,ltd Sales of goods 2,634.90 3,473.67
Sales of
Sichuan Changhong Electric Co., Ltd. goods/offering 1,301.87 2,277.33
labor service
CHANGHONG ELECTRIC MIDDLE EAST FZCO Sales of goods 1,158.97 1,285.90
Changhong Ruba Electric Company (Private) Ltd. Sales of goods 1,079.90 7,299.85
Sales of
Sichuan Aichuang Science & Technology Co., Ltd. goods/offering 813.29 109.88
labor service
Sichuan Changhong Gerun Environmental Protection
Sales of goods 572.25 743.53
Tech. Co., Ltd.
Lejiayi Chain Management Co., Ltd. Sales of goods 549.82 6,254.86
Sichuan Service Exp. Appliance Service Chain Co.,
Sales of goods 403.10 599.76
Ltd.
Guangdong Changhong Electronics Co., Ltd. Sales of goods 158.46 61.73
Sales of
Chengdu Guigu Environmental Tech. Co., Ltd. goods/offering 135.91 1,289.69
labor service
Sichuan Changhong International Hotel Co., Ltd Sales of goods 70.35 1,024.84
Offering labor
Sichuan Changhong Network Technology Co., Ltd. 99.14 0.10
service
Sichuan Changhong International Hotel Co., Ltd. Sales of 73.61 3.62
363
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
Current Year Last Year
Related party Content (in 10 thousand (in 10 thousand
Yuan) Yuan)
goods/offering
labor service
Offering labor
Changhong Huayi Compressor Co., Ltd. 56.60 37.85
service
Offering labor
Sichuan Changhong Intelligent Technology Co., Ltd. 54.72
service
Sales of
Sichuan Changhong Intelligent Manufacturing
goods/offering 51.09 3.34
Technology Co., Ltd.
labor service
Sales of
Sichuan Changhong New Energy Technology Co.,
goods/offering 42.57 12.01
Ltd.
labor service
Sales of
Mianyang Huafeng Interconnect Technology Co., Ltd. goods/offering 40.86 844.98
labor service
Sales of
Sichuan Huafeng Enterprise Group Co., Ltd. goods/offering 36.43 12.81
labor service
Sales of
Sichuan Changhong Device Technology Co., Ltd. goods/Offering 10.56 59.22
labor service
Sales of 35.40 8.22
Sichuan Changhong Electronic Parts Co., Ltd goods/Offering
labor service
Offering labor
Sichuan Hongxin Software Co., Ltd. 5.04
service
Beijing Changhong Tech. Co. Ltd. Sales of goods 1.86
Sichuan Changhong Power Source Co., Ltd. Sales of goods 1.81 8.44
Sichuan Hongmofang Network Technology Co., Ltd. Sales of goods 1.73
Hefei Changhong Industrial Co., Ltd. Sales of goods 0.43 111.05
Guangyuan Changhong Electronic Technology Co.,
Sales of goods 0.35 112.06
Ltd.
Sales of
Sichuan Changhong Minsheng Logistics Co., Ltd. goods/offering 3.48 168.46
labor service
Sales of
Sichuan Changhong Real Estate Co., Ltd. goods/offering -2.61 159.22
labor service
Sales of
Sichuan Changhong Education Technology Co., Ltd. goods/offering -84.74 1,194.40
labor service
Sichuan Changhong Electronics Holding Group Co.,
Sales of goods 31.91
Ltd.
Sichuan Hongwei Technology Co., Ltd. Sales of goods 0.76
Sichuan Changhong Smart Health Technology Co.,
Sales of goods 0.44
Ltd.
Sichuan Changhong Property Services Co., Ltd. Sales of goods 6.60
364
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
Current Year Last Year
Related party Content (in 10 thousand (in 10 thousand
Yuan) Yuan)
BVCH Optronics (Sichuan) Co., Ltd. Sales of goods 0.68
Sichuan Changhong Electronic Products Co., Ltd. Sales of goods 8.22
Sichuan Changhong Group Finance Co., Ltd. Sales of goods 1.84
Sichuan Changhong Package Printing Co., Ltd. Sales of goods 0.35
081 Electronic Group Co., Ltd. Sales of goods 1.72
Sichuan Ailian Science & Technology Co., Ltd. Sales of goods 2.09
Sichuan Jiahong Industrial Co., Ltd. Sales of goods 13.87
Sichuan Changhong Precision Electronics Tech. Co.,
Sales of goods 0.09
Ltd.
Hunan Grand-Pro Intelligent Tech. Company Sales of goods 0.29
Total 569,395.85 411,041.01
Businesses between the Company and its connected persons are generally conducted under market
operation rules as if they were the same as other business counter parties. For price of sale or purchase
and provision of other labor service between the Company and its related parties, the state pricing is
applicable if the pricing do exists; in case of absence of such state pricing, price is determined under
market price; in case of absence of such market price, price is determined by both parties at actual cost
plus reasonable expenses; for some special services, the price of which cannot be determined under
the rule of cost plus expense, the price shall be determined by both parties by negotiation.
(5) Provide fuel power
Related party Content Current Year Last Year
Provide fuels
Sichuan Changhong Mold Plastic Tech. Co., Ltd. 7,268,571.71 7,573,536.90
power
Provide fuels
Sichuan Changhong Device Technology Co., Ltd. 844,734.88 1,176,255.91
power
Provide fuels
Sichuan Changhong Jijia Fine Co., Ltd. 158,726.95 138,288.90
power
Provide fuels
Sichuan Changhong Minsheng Logistics Co., Ltd. 86,738.00 73,268.48
power
Provide fuels
Sichuan Zhiyijia Network Technology Co., Ltd. 45,684.57
power
Provide fuels
Guangdong Changhong Electronics Co., Ltd. 38,436.16 651,741.40
power
Sichuan Changhong Precision Electronics Tech. Co., Provide fuels
15,872.50 15,433.17
Ltd. power
Provide fuels
Sichuan Jiahong Industrial Co., Ltd. 13,065.53
power
Mianyang Science & Technology City Big Data Provide fuels
6,763.23
Technology Co., Ltd. power
365
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
Related party Content Current Year Last Year
Provide fuels
Sichuan Changhong Network Technology Co., Ltd. 6,484.24
power
Provide fuels
Sichuan Hongwei Technology Co., Ltd. 3,137.33 3,664.27
power
Sichuan Service Exp. Appliance Service Chain Co., Provide fuels
9,503.85
Ltd. power
Provide fuels
Sichuan Changhong Electric Co., Ltd. 13,454.51
power
Total 8,488,215.10 9,655,147.39
6. Related rental
(1) Rent out
Type of Leasing income in Leasing income
Lessor Lessee
assets Current Year in last year
Changhong Sichuan Changhong Mold Plastic Tech.
workshop 1,441,574.10 1,427,060.66
Meiling Co., Ltd.
Changhong
Sichuan Changhong Jijia Fine Co., Ltd. workshop 541,594.80 403,632.66
Meiling
Changhong Sichuan Changhong Mold Plastic Tech.
Apartment 447,269.14 628,310.13
Meiling Co., Ltd.
Changhong Sichuan Changhong Mold Plastic Tech.
Warehouse 282,430.19 448,301.88
Meiling Co., Ltd.
Changhong
Hefei Changhong Industrial Co., Ltd. Apartment 228,637.23 257,283.58
Meiling
Changhong Sichuan Changhong Minsheng Logistics
Apartment 211,594.52 157,161.90
Meiling Co., Ltd.
Changhong Sichuan Zhiyijia Network Technology
Apartment 209,364.69
Meiling Co., Ltd.
Changhong Sichuan Service Exp. Appliance Service
Apartment 156,252.00 135,130.67
Meiling Chain Co., Ltd.
Changhong
Sichuan Changhong Jijia Fine Co., Ltd. Warehouse 139,040.18 133,280.16
Meiling
Changhong
Sichuan Changhong Jijia Fine Co., Ltd. Apartment 122,133.76 210,139.44
Meiling
Changhong Sichuan Service Exp. Appliance Service
Office 43,633.32 130,377.53
Meiling Chain Co., Ltd.
Changhong Sichuan Changhong Precision Electronics
Apartment 39,456.00 49,032.95
Meiling Tech. Co., Ltd.
Changhong Sichuan Aichuang Science & Technology
Warehouse 34,987.18 37,519.68
Meiling Co., Ltd.
Changhong
Sichuan Hongwei Technology Co., Ltd. Apartment 31,200.00
Meiling
Changhong
Sichuan Changhong Jijia Fine Co., Ltd. Forklift 26,439.91 21,204.11
Meiling
Changhong Sichuan Service Exp. Appliance Service
Forklift 9,600.00 9,600.00
Meiling Chain Co., Ltd.
Changhong Sichuan Ailian Science & Technology Warehouse 2,686.20 2,686.20
366
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
Type of Leasing income in Leasing income
Lessor Lessee
assets Current Year in last year
Meiling Co., Ltd.
Changhong Sichuan Aichuang Science & Technology
Forklift 2,532.50 4,361.18
Meiling Co., Ltd.
Changhong
Hefei Changhong Industrial Co., Ltd. Warehouse 2,023.58
Meiling
Changhong
Sichuan Changhong Jijia Fine Co., Ltd. Appliance 300.00
Meiling
Changhong Sichuan Changhong Minsheng Logistics
Office 23,944.27
Meiling Co., Ltd.
Changhong Sichuan Service Exp. Appliance Service
workshop 43,241.00
Meiling Chain Co., Ltd.
Changhong
Sichuan Changhong Electric Co., Ltd. Apartment 60,943.50
Meiling
ZhongkeM Sichuan Changhong Minsheng Logistics
workshop 2,352,570.64 2,829,034.65
eiling Co., Ltd.
Jiangxi Sichuan Changhong Mold Plastic Tech.
workshop 839,228.54 780,677.72
Meiling Co., Ltd.
Jiangxi Sichuan Changhong Minsheng Logistics Workshop,O
9,142.86 26,285.71
Meiling Co., Ltd. ffice
Warehouse
Jiangxi
Changhong Huayi Compressor Co., Ltd. space 3,771.43 10,666.66
Meiling
leasing
Changhong
Air-conditi Sichuan Changhong Jijia Fine Co., Ltd. workshop 6,131,693.75
oner
Changhong
Sichuan Changhong Mold Plastic Tech. House and
Air-conditi 5,925,054.84 3,950,036.56
Co., Ltd. buildings
oner
Changhong
Air-conditi Sichuan Changhong Electric Co., Ltd. Equipment 2,401,421.34 2,111,100.00
oner
Changhong
Sichuan Changhong Mold Plastic Tech.
Air-conditi Equipment 665,334.62
Co., Ltd.
oner
Changhong
Air-conditi Sichuan Changhong Jijia Fine Co., Ltd. Equipment 567,110.67
oner
Changhong
Air-conditi Sichuan Changhong Electric Co., Ltd. workshop 467,599.18
oner
Changhong Processing
Sichuan Changxin Refrigeration Parts
Air-conditi equipment 300,000.00
Co., Ltd.
oner of U
Changhong
Chengdu Guigu Environmental Tech. Co., House and
Air-conditi 28,403.67 28,403.67
Ltd. buildings
oner
Changhong
Conference
Air-conditi Sichuan Changhong Electric Co., Ltd. 1,834.86
Room
oner
Changhong Sichuan Changxin Refrigeration Parts House and
300,000.00
Air-conditi Co., Ltd. buildings
367
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
Type of Leasing income in Leasing income
Lessor Lessee
assets Current Year in last year
oner
Changhong
Sichuan Huafeng Enterprise Group Co., Conference
Air-conditi 3,669.72
Ltd. Room
oner
Zhongshan Guangdong Changhong Electronics Co., Office
149,076.80 197,458.25
Changhong Ltd. building
Zhongshan Sichuan Changhong Mold Plastic Tech. 2# living
84,813.23 81,240.00
Changhong Co., Ltd. area
Zhongshan Sichuan Changhong Precision Electronics 2# living
78,313.34 71,451.61
Changhong Tech. Co., Ltd. area
Parts of the
Zhongshan Sichuan Changhong Minsheng Logistics office
31,188.42 35,338.99
Changhong Co., Ltd. building
rent-out
Zhongshan Sichuan Changhong Device Technology 2# living
10,861.40 58,444.98
Changhong Co., Ltd. area
Ridian Sichuan Changhong Device Technology
workshop 1,710,745.15 1,417,391.01
Technology Co., Ltd.
Ridian Sichuan Changhong Minsheng Logistics
workshop 76,190.48
Technology Co., Ltd.
Ridian
Sichuan Hongwei Technology Co., Ltd. workshop 45,257.14 45,257.14
Technology
Ridian Changhong International Holdings (Hong
Office 95,238.86
Technology Kong) Co., Ltd.
Ridian Changhong International Holdings (Hong
Automobile 31,034.48
Technology Kong) Co., Ltd.
Total 25,852,061.66 16,256,241.51
(2) Lessee of related parties
Leasing expense Leasing expense
Lessor Lessee Type of assets
in Current Year in last year
Guangdong Changhong Electronics Zhongshan Workshop
1,015,654.68 3,241,100.58
Co., Ltd. Changhong leasing
Guangdong Changhong Electronics Zhongshan
Staff dormitory 178,332.78
Co., Ltd. Changhong
Changhong Workshop
Sichuan Changhong Electric Co., Ltd. 2,567,272.94
Air-conditioner leasing
Changhong Warehouse
Sichuan Changhong Electric Co., Ltd. 634,664.55
Air-conditioner rental
Sichuan Changhong Electronics Changhong Dormitory
208,690.40
Holding Group Co., Ltd. Air-conditioner rental
Sichuan Changhong Electronics Changhong
Outlets lease 125,548.80
Holding Group Co., Ltd. Air-conditioner
Guangdong Changhong Electronics Ridian
Staff dormitory 55,294.11
Co., Ltd. Technology
Ridian
Sichuan Changhong Electric Co., Ltd. Staff dormitory 48,257.03
Technology
Mianyang Workshop
Sichuan Changhong Electric Co., Ltd. 3,246,239.65 42,752.89
Meiling leasing
368
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
Leasing expense Leasing expense
Lessor Lessee Type of assets
in Current Year in last year
Sichuan Changhong Electronics Mianyang
Staff dormitory 48,785.77 8,528.25
Holding Group Co., Ltd. Meiling
Sichuan Changhong Property Services Mianyang
Flower lease 9,271.70 114,323.85
Co., Ltd. Meiling
Sichuan Changhong Electric Co., Ltd. Meiling Group Office 885,487.38
Beijing Changhong Tech. Co. Ltd. Meiling Group Office 78,932.59
Changhong Huayi Compressor Co.,
Jiangxi Meiling Staff dormitory 53,246.28 291,940.55
Ltd.
Chengdu Changhong Electronic Hongmei
Office 624,277.12 454,450.37
Technology Co., Ltd. Intelligent
Hongmei Workshop,
Sichuan Changhong Electric Co., Ltd. 93,085.18
Intelligent Office
Guangdong Changhong Electronics Ground Energy
Staff dormitory 103,432.19 147,850.00
Co., Ltd. Heat Pump
Total 9,804,455.38 4,472,964.26
7. Related guarantee
Maximum guarantee
Completed
Secured party Sponsored party amount (in 10 Start Date due
(Y/N)
thousand Yuan)
Changhong
Jiangxi Meiling 5,000.00 2019.03.12 2020.03.11 Y
Meiling
Changhong
Jiangxi Meiling 10,000.00 2019.03.14 2020.03.14 Y
Meiling
Changhong
Jiangxi Meiling 10,000.00 2020.04.09 2021.04.09 N
Meiling
Changhong Nonferrous
1,000.00 2020.03.20 2021.03.05 N
Meiling Metals
Changhong
Meiling Group 6,000.00 2020.03.26 2021.03.26 N
Meiling
Changhong
Meiling Group 10,000.00 2020.12.30 2021.12.29 N
Meiling
Changhong Changhong
20,000.00 2019.07.30 2020.03.25 Y
Meiling Air-conditioner
Changhong
ChanghongRuba 2,062.41 2019.01.28 2020.02.15 Y
Meiling
Changhong
ChanghongRuba 2,103.51 2019.12.23 2021.01.15 N
Meiling
Changhong
ChanghongRuba 1,983.25 2020.01.17 2020.11.06 Y
Meiling
Changhong
ChanghongRuba 1,831.50 2020.12.16 2021.12.07 N
Meiling
Changhong Ridian
4,000.00 2019.03.31 2020.03.30 Y
Meiling Technology
369
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
Maximum guarantee
Completed
Secured party Sponsored party amount (in 10 Start Date due
(Y/N)
thousand Yuan)
Changhong Ridian
6,500.00 2019.08.22 2020.08.22 Y
Meiling Technology
Changhong Ridian
2,500.00 2020.01.28 2020.07.27 Y
Meiling Technology
Changhong Ridian
3,000.00 2020.03.14 2021.03.13 N
Meiling Technology
Changhong Ridian
4,000.00 2020.03.30 2021.03.31 N
Meiling Technology
Changhong Ridian
6,500.00 2020.08.22 2021.08.22 N
Meiling Technology
Changhong Ridian
5,000.00 2020.07.03 2021.07.02 N
Meiling Technology
Changhong
Zhongke Meiling 3,000.00 2019.07.18 2020.07.17 Y
Meiling
Changhong
Zhongke Meiling 2,000.00 2020.12.25 2021.09.26 N
Meiling
Changhong
Zhongke Meiling 2,000.00 2019.12.30 2020.11.22 N
Meiling
Changhong
Zhongke Meiling 3,000.00 2019.08.20 2020.08.19 Y
Meiling
Changhong
Zhongke Meiling 3,000.00 2020.09.22 2021.09.22 N
Meiling
Changhong
Zhongke Meiling 2,000.00 2019.08.23 2020.08.23 Y
Meiling
Changhong
Zhongke Meiling 2,000.00 2020.08.24 2021.08.24 N
Meiling
Changhong
Zhongke Meiling 920.00 2019.09.24 2020.09.24 Y
Meiling
Changhong
Zhongke Meiling 1,000.00 2020.11.19 2021.11.18 N
Meiling
Changhong
Zhongke Meiling 1,000.00 2020.03.10 2021.03.10 N
Meiling
Changhong
Zhongke Meiling 1,500.00 2020.06.01 2021.03.12 N
Meiling
Changhong
Zhongke Meiling 500.00 2020.06.30 2021.03.15 N
Meiling
Changhong Zhongshan
10,000.00 2019.01.25 2020.01.24 Y
Meiling Changhong
Changhong Zhongshan
5,500.00 2019.03.15 2020.03.15 Y
Meiling Changhong
Changhong Zhongshan
10,000.00 2019.03.31 2020.03.30 Y
Meiling Changhong
Changhong Zhongshan
5,000.00 2019.06.20 2020.06.20 Y
Meiling Changhong
Changhong Zhongshan
15,000.00 2019.06.28 2020.06.27 Y
Meiling Changhong
Changhong Zhongshan
2,000.00 2019.08.21 2020.08.20 Y
Meiling Changhong
370
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
Maximum guarantee
Completed
Secured party Sponsored party amount (in 10 Start Date due
(Y/N)
thousand Yuan)
Changhong Zhongshan
10,000.00 2019.08.31 2020.08.31 Y
Meiling Changhong
Changhong Zhongshan
20,000.00 2020.06.12 2021.03.10 N
Meiling Changhong
Changhong Zhongshan
5,000.00 2020.03.09 2021.03.09 N
Meiling Changhong
Changhong Zhongshan
15,000.00 2020.01.10 2021.01.10 N
Meiling Changhong
Changhong Zhongshan
5,500.00 2020.03.15 2021.03.15 N
Meiling Changhong
Changhong Zhongshan
17,900.00 2020.04.14 2021.04.13 N
Meiling Changhong
Changhong Zhongshan
20,000.00 2020.03.30 2021.03.30 N
Meiling Changhong
Changhong Zhongshan
12,000.00 2020.04.28 2021.04.28 N
Meiling Changhong
Changhong Zhongshan
10,000.00 2020.08.31 2021.08.31 N
Meiling Changhong
Changhong Zhongshan
15,000.00 2020.07.03 2021.07.02 N
Meiling Changhong
Changhong Zhongshan
10,000.00 2018.08.09 2019.08.09 Y
Meiling Changhong
Changhong Zhongshan
5,000.00 2018.10.23 2019.10.23 Y
Meiling Changhong
Counter
guarantee:
Changhong
Jiangxi Meiling 5,000.00 2019.03.12 2020.03.11 Y
Meiling
Changhong
Jiangxi Meiling 10,000.00 2019.03.14 2020.03.14 Y
Meiling
Changhong
Jiangxi Meiling 10,000.00 2020.04.09 2021.04.09 N
Meiling
Nonferrous Changhong
1,000.00 2020.03.20 2021.03.05 N
Metals Meiling
Changhong
Meiling Group 6,000.00 2020.03.26 2021.03.26 N
Meiling
Changhong
Meiling Group 10,000.00 2020.12.30 2021.12.29 N
Meiling
Changhong Changhong
20,000.00 2019.07.30 2020.03.25 Y
Air-conditioner Meiling
Changhong
ChanghongRuba 2,062.41 2019.01.28 2020.02.15 Y
Meiling
Changhong
ChanghongRuba 2,103.51 2019.12.23 2021.01.15 N
Meiling
Changhong
ChanghongRuba 1,983.25 2020.01.17 2020.11.06 Y
Meiling
Changhong
ChanghongRuba 1,831.50 2020.12.16 2021.12.07 N
Meiling
371
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
Maximum guarantee
Completed
Secured party Sponsored party amount (in 10 Start Date due
(Y/N)
thousand Yuan)
Ridian Changhong
4,000.00 2019.03.31 2020.03.30 Y
Technology Meiling
Ridian Changhong
6,500.00 2019.08.22 2020.08.22 Y
Technology Meiling
Ridian Changhong
2,500.00 2020.01.28 2020.07.27 Y
Technology Meiling
Ridian Changhong
3,000.00 2020.03.14 2021.03.13 N
Technology Meiling
Ridian Changhong
4,000.00 2020.03.30 2021.03.31 N
Technology Meiling
Ridian Changhong
6,500.00 2020.08.22 2021.08.22 N
Technology Meiling
Ridian Changhong
5,000.00 2020.07.03 2021.07.02 N
Technology Meiling
Changhong
Zhongke Meiling 3,000.00 2019.07.18 2020.07.17 Y
Meiling
Changhong
Zhongke Meiling 2,000.00 2020.12.25 2021.09.26 N
Meiling
Changhong
Zhongke Meiling 2,000.00 2019.12.30 2020.11.22 N
Meiling
Changhong
Zhongke Meiling 3,000.00 2019.08.20 2020.08.19 Y
Meiling
Changhong
Zhongke Meiling 3,000.00 2020.09.22 2021.09.22 N
Meiling
Changhong
Zhongke Meiling 2,000.00 2019.08.23 2020.08.23 Y
Meiling
Changhong
Zhongke Meiling 2,000.00 2020.08.24 2021.08.24 N
Meiling
Changhong
Zhongke Meiling 920.00 2019.09.24 2020.09.24 Y
Meiling
Changhong
Zhongke Meiling 1,000.00 2020.11.19 2021.11.18 N
Meiling
Changhong
Zhongke Meiling 1,000.00 2020.03.10 2021.03.10 N
Meiling
Changhong
Zhongke Meiling 1,500.00 2020.06.01 2021.03.12 N
Meiling
Changhong
Zhongke Meiling 500.00 2020.06.30 2021.03.15 N
Meiling
Zhongshan Changhong
10,000.00 2019.01.25 2020.01.24 Y
Changhong Meiling
Zhongshan Changhong
5,500.00 2019.03.15 2020.03.15 Y
Changhong Meiling
Zhongshan Changhong
10,000.00 2019.03.31 2020.03.30 Y
Changhong Meiling
Zhongshan Changhong
5,000.00 2019.06.20 2020.06.20 Y
Changhong Meiling
Zhongshan Changhong
15,000.00 2019.06.28 2020.06.27 Y
Changhong Meiling
372
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
Maximum guarantee
Completed
Secured party Sponsored party amount (in 10 Start Date due
(Y/N)
thousand Yuan)
Zhongshan Changhong
2,000.00 2019.08.21 2020.08.20 Y
Changhong Meiling
Zhongshan Changhong
10,000.00 2019.08.31 2020.08.31 Y
Changhong Meiling
Zhongshan Changhong
20,000.00 2020.06.12 2021.03.10 N
Changhong Meiling
Zhongshan Changhong
5,000.00 2020.03.09 2021.03.09 N
Changhong Meiling
Zhongshan Changhong
15,000.00 2020.01.10 2021.01.10 N
Changhong Meiling
Zhongshan Changhong
5,500.00 2020.03.15 2021.03.15 N
Changhong Meiling
Zhongshan Changhong
17,900.00 2020.04.14 2021.04.13 N
Changhong Meiling
Zhongshan Changhong
20,000.00 2020.03.30 2021.03.30 N
Changhong Meiling
Zhongshan Changhong
12,000.00 2020.04.28 2021.04.28 N
Changhong Meiling
Zhongshan Changhong
10,000.00 2020.08.31 2021.08.31 N
Changhong Meiling
Zhongshan Changhong
15,000.00 2020.07.03 2021.07.02 N
Changhong Meiling
Zhongshan Changhong
10,000.00 2018.08.09 2019.08.09 Y
Changhong Meiling
Zhongshan Changhong
5,000.00 2018.10.23 2019.10.23 Y
Changhong Meiling
(8) Assets transfer, debt restructuring of related parties
Related party Type Current Year Last Year
Sichuan Changhong Intelligent Purchase and construction
4,920,208.93 36,796,919.82
Manufacturing Technology Co., Ltd. of fixed assets
Purchase and construction
Sichuan Huanyu Industrial Co., Ltd. 2,164,755.99 19,897,298.71
of fixed assets
Sichuan Changhong Mold Plastic Tech.
Purchasing fixed assets 1,654,600.00
Co., Ltd.
Sichuan Zhiyijia Network Technology
Purchasing fixed assets 820,469.07 104,693.81
Co., Ltd.
Purchase and construction
Sichuan Hongxin Software Co., Ltd. 613,207.54 2,826,830.79
of fixed assets
Sichuan Changhong Jineng Sunshine
Purchasing fixed assets 42,348.02 -23,340.00
Technology Co., Ltd.
Sichuan Changhong Electric Co., Ltd. Sales of fixed assets 39,611.48 1,028,804.28
Sichuan Service Exp. Appliance Service
Purchasing fixed assets 5,238.94
Chain Co., Ltd.
Sichuan Changxin Refrigeration Parts
Purchasing fixed assets 1,894.30
Co., Ltd.
373
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
Related party Type Current Year Last Year
Guangdong Changhong Electronics Co., Purchase and construction
12,743.36
Ltd. of fixed assets
Mianyang Science & Technology City Purchase and construction
1,112,815.42
Big Data Technology Co., Ltd. of fixed assets
Purchase and construction
Sichuan Hongcheng Real Estate Co., Ltd. 56,603.77
of fixed assets
Purchase and construction
Sichuan Jiahong Industrial Co., Ltd. 1,347,541.41
of fixed assets
Purchase and construction
Sichuan Changhong Electric Co., Ltd. 48,956,440.92
of fixed assets
Sichuan Changhong Electronic System Purchase and construction
126,106.19
Co., Ltd. of fixed assets
Sichuan Hongwei Technology Co., Ltd. Purchasing fixed assets 924.40
Sichuan Changhong Network Purchase and construction
1,098,430.46
Technology Co., Ltd. of fixed assets
Sichuan Hongxin Software Co., Ltd. Purchase intangible assets 452,830.18
Sichuan Changhong Electric Co., Ltd. Purchase intangible assets 112,876,479.31
Changhong Shundatong Tech.
Sales of fixed assets 128,199.13
Development Co., Ltd.
Sichuan Changhong Electronics Holding
Sales of fixed assets 17,383.08
Group Co., Ltd.
Sichuan Changhong Gerun
Sales of fixed assets 4,570.77
Environmental Protection Tech. Co., Ltd.
Sichuan Changhong Jijia Fine Co., Ltd. Sales of fixed assets 9,980.82
Sichuan Jiahong Industrial Co., Ltd. Sales of fixed assets 4,813.70
Total 10,262,334.27 226,837,070.33
(9) Other
Current Year (in 10 Last Year (in 10
Name of company Content
thousand Yuan) thousand Yuan)
Yuanxin Financial Lease Financing business, financing
6,466.21 391.67
Co., Ltd. expenses and financial leasing
(10) Related transaction with Changhong Finance Company
(1) Saving balance
Interest income from
Balance at Balance at
Name of company bank saving in the
period-end period-begin
period
Changhong Meiling Co., Ltd. 1,860,047,247.52 3,081,631,716.95 86,876,555.02
Zhongshan Changhong Electric Co., Ltd. 404,582,475.31 13,782,922.16 4,098,517.68
Changhong Meiling Ridian Technology
162,196,324.57 76,106,470.22 1,342,686.16
Co., Ltd.
Zhongke Meiling Cryogenic Technology 141,336,330.05 90,904,816.77 4,000,808.68
374
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
Interest income from
Balance at Balance at
Name of company bank saving in the
period-end period-begin
period
Co., Ltd.
Sichuan Changhong Air Conditioning
134,802,966.64 424,969,027.90 12,638,030.50
Co., Ltd.
Hongyuan Ground Energy Heat Pump
69,211,263.89 13,076,054.46 840,091.44
Tech. (Zhongshan) Co., Ltd
Hebei Hongmao Household Appliance
15,657,360.37 1,799,703.59 40,008.08
Technology Co., Ltd
Anhui Tuoxing Technology Co., Ltd. 10,243,055.56 243,055.56
Hongyuan Ground Energy Heat Pump
114,826.06 100,690.19 2,763.86
Tech. Co., Ltd
Mianyang Meiling Refrigeration Co.,
50,871.36 925.37 44,945.99
Ltd.
Jiangxi Meiling Electric Appliance Co.,
9,544.98 9,504.34 40.64
Ltd.
Hefei Meiling Group Holdings Limited 3,742.21 798.43 3,743.06
Total 2,798,256,008.52 3,702,382,630.38 110,131,246.67
(2) Notes discounted
Commercial bill
Commercial bill Expenses of
Name of company book discounted
discounted amount discounted
amount
Changhong Meiling Co., Ltd. 1,445,288,263.13 1,437,711,268.85 7,576,994.28
Sichuan Changhong Air Conditioning
843,353,638.28 836,535,171.79 6,818,466.49
Co., Ltd.
Ground Energy Heat Pump Tech.
7,422,611.40 7,340,947.30 81,664.10
(Zhongshan) Co., Ltd.
Total 2,296,064,512.81 2,281,587,387.94 14,477,124.87
(3) Notes issued
Name of company Issuing unit Note amount Type
Sichuan Changhong Group
Changhong Meiling Co., Ltd. 980,483,214.50 Bank acceptance
Finance Co., Ltd.
Hebei Hongmao Household Appliance Sichuan Changhong Group
29,776,934.53 Bank acceptance
Technology Co., Ltd Finance Co., Ltd.
Sichuan Changhong Air Conditioning Sichuan Changhong Group
1,339,688,343.39 Bank acceptance
Co., Ltd. Finance Co., Ltd.
Zhongke Meiling Cryogenic Sichuan Changhong Group
31,955,247.03 Bank acceptance
Technology Co., Ltd. Finance Co., Ltd.
Changhong Meiling Ridian Technology Sichuan Changhong Group
84,911,175.18 Bank acceptance
Co., Ltd. Finance Co., Ltd.
375
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
Name of company Issuing unit Note amount Type
Zhongshan Changhong Electric Co., Sichuan Changhong Group
154,394,439.11 Bank acceptance
Ltd. Finance Co., Ltd.
Hongyuan Ground Energy Heat Pump Sichuan Changhong Group
68,589,337.19
Tech. (Zhongshan) Co., Ltd Finance Co., Ltd.
Total 2,689,798,690.93
(4) Borrowing: nil
(5) Accounts receivable factoring: nil
(11) Remuneration for key management
Current Year (in 10 Last Year (in 10 thousand
Item Name
thousand Yuan) Yuan)
Total remuneration 346.88 333.24
Including: performance incentive fund
(iii) Come and go balance with related parties
1.Receivable items
Balance at year-end Balance at year-begin
Item Name Related party Bad debt Bad debt
Book balance Book balance
provision provision
Account Sichuan Zhiyijia Network
152,851,050.10 5,950.95 375,948,123.63
receivable Technology Co., Ltd.
Account CHANGHONG ELECTRIC
82,523,745.73 37,804,702.10
receivable (AUSTRALIA) PTY.LTD.
Account CHANGHONG (HK)
74,561,075.45 75,242,050.75
receivable TRADING LIMITED
Account Changhong Ruba Electric
46,262,313.51 3,664,544.64 86,214,001.68
receivable Company (Private) Ltd.
Changhong International
Account
Holdings (Hong Kong) Co., 23,280,926.68
receivable
Ltd.
Account Changhong Europe Electric
7,285,475.46 1,664,405.17
receivable s.r.o
Account Hongyuan Ground Energy
2,557,611.11 259,719.23 10,720,675.24
receivable Heat Tech. Co., Ltd.
Account Sichuan Changhong Electric
1,648,021.88
receivable Co., Ltd.
Account CHANGHONG ELECTRIC
1,641,684.42 1,552,183.58
receivable MIDDLE EAST FZCO
Account
Orion.PDP.Co.,ltd 1,365,471.85 8,267,321.25
receivable
Account Sichuan Aichuang Science &
1,235,293.51 43,297.65
receivable Technology Co., Ltd.
376
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
Balance at year-end Balance at year-begin
Item Name Related party Bad debt Bad debt
Book balance Book balance
provision provision
Account Lejiayi Chain Management
752,700.75 13,309.44 12,461,940.42
receivable Co., Ltd.
Account PT.CHANGHONG
703,520.00 3,844,393.51
receivable ELECTRIC INDONESIA
Account Sichuan Changhong Network
291,996.61
receivable Technology Co., Ltd.
Account Sichuan Changhong Electronic
375,287.92
receivable Products Co., Ltd.
Account Sichuan Changhong Mold
193,981.98 162,163.72
receivable Plastic Tech. Co., Ltd.
Sichuan Service Exp.
Account
Appliance Service Chain Co., 179,721.66 211,621.68
receivable
Ltd.
Account Sichuan Changhong Device
327.80
receivable Technology Co., Ltd.
Account Sichuan Changhong
20,166.00
receivable International Hotel Co., Ltd.
Account Sichuan Changhong Minsheng
12,173.16 41,163.13
receivable Logistics Co., Ltd.
Account Guangdong Changhong
3,507.01 224,817.29
receivable Electronics Co., Ltd.
Account Sichuan Changhong Real
159,690.33
receivable Estate Co., Ltd.
Account Hefei Changhong Industrial
50,000.00
receivable Co., Ltd.
Sichuan Changhong Intelligent
Account paid
Manufacturing Technology 2,191,049.27
in advance
Co., Ltd.
Account paid Sichuan Changhong Minsheng
366,287.00 15,295.00
in advance Logistics Co., Ltd.
Account paid Sichuan Zhiyijia Network
1,622.40
in advance Technology Co., Ltd.
Account paid Sichuan Changhong Mold
16.80
in advance Plastic Tech. Co., Ltd.
Account paid Sichuan Hongran Green
30,988.36
in advance Energy Co., Ltd.
Other Sichuan Changhong Electric
2,657,173.57
receivable Co., Ltd.
Other Sichuan Changhong Real
299,373.25 309,410.65
receivable Estate Co., Ltd.
Sichuan Service Exp.
Other
Appliance Service Chain Co., 200,000.00 500,000.00
receivable
Ltd.
Other Hunan Grand-Pro Intelligent
45,200.00
receivable Tech. Company
Other Sichuan Changhong
39,550.00 27,589.45
receivable International Hotel Co., Ltd.
Other 081 Electronic Group Co., Ltd. 204,567.35
377
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
Balance at year-end Balance at year-begin
Item Name Related party Bad debt Bad debt
Book balance Book balance
provision provision
receivable
Other Hefei Changhong Industrial
122,396.08
receivable Co., Ltd.
Total 403,544,357.88 3,943,524.26 615,824,765.02
2.Payable items
Item Name Related party Balance at year-end Balance at year-begin
Account payable Sichuan Changhong Electric Co., Ltd. 48,150,899.09 153,791,187.83
Sichuan Changhong Mold Plastic Tech. Co.,
Account payable 44,726,533.64 75,808,653.32
Ltd.
Sichuan Aichuang Science & Technology
Account payable 36,339,436.08 24,466,981.06
Co., Ltd.
Account payable Sichuan Changhong Jijia Fine Co., Ltd. 30,784,821.38 12,883,071.50
Account payable Changhong Huayi Compressor Co., Ltd. 24,556,917.25 59,533,997.08
Sichuan Changhong Package Printing Co.,
Account payable 10,337,574.43 3,080,005.38
Ltd.
Account payable Mianyang Highly Electric Co., Ltd. 10,035,029.02 9,379,903.10
Changhong Ruba Electric Company (Private)
Account payable 8,938,947.95 20,520,728.81
Ltd.
Account payable Hefei Changhong Industrial Co., Ltd. 6,434,535.69 1,729.50
Sichuan Ailian Science & Technology Co.,
Account payable 3,067,909.39 5,500,914.00
Ltd.
Account payable CHANGHONG (HK) TRADING LIMITED 3,052,516.27 3,052,516.27
Sichuan Zhiyijia Network Technology Co.,
Account payable 2,979,349.71
Ltd.
Sichuan Changhong Electronic Products Co.,
Account payable 2,388,369.91 2,097,100.40
Ltd.
Changhong International Holdings (Hong
Account payable 1,502,240.80 394,743.12
Kong) Co., Ltd.
Sichuan Changhong Intelligent
Account payable 962,930.89 15,962,820.73
Manufacturing Technology Co., Ltd.
Sichuan Changhong Precision Electronics
Account payable 877,946.47 1,443,759.01
Tech. Co., Ltd.
Sichuan Changhong Minsheng Logistics Co.,
Account payable 863,688.97 210,699.13
Ltd.
Account payable Guangdong Changhong Electronics Co., Ltd. 848,590.31 113,504.45
Account payable Hunan Grand-Pro Intelligent Tech. Company 433,594.69 9,095,322.04
Sichuan Service Exp. Appliance Service
Account payable 261,823.77 127,050.71
Chain Co., Ltd.
Account payable 081 Electronic Group Co., Ltd. 136,168.13 86,951.38
Account payable Sichuan Changhong Jineng Sunshine 52,743.33 20,076.99
378
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
Item Name Related party Balance at year-end Balance at year-begin
Technology Co., Ltd.
Sichuan Changhong International Travel
Account payable 50,552.00 167,858.10
Service Co., Ltd.
Sichuan Changhong Electronics Holding
Account payable 6,687.52
Group Co., Ltd.
Sichuan Changhong New Energy Technology
Account payable 5,333.60 2,950.00
Co., Ltd.
Account payable Sichuan Hongwei Technology Co., Ltd. 3,225.71
Account payable Sichuan Changhong Power Source Co., Ltd. 1,870.82 1,870.82
Sichuan Hongyu Metal Manufacturing Co.,
Account payable 14,662.40
Ltd.
Account payable Sichuan Hongxin Software Co., Ltd. 340,000.00
Sichuan Changhong Electronic System Co.,
Account payable 5,432.53
Ltd.
Account payable Sichuan Jiahong Industrial Co., Ltd. 14,764.05
Sichuan Changhong Network Technology
Account payable 7,229.72
Co., Ltd.
Account payable Lejiayi Chain Management Co., Ltd. 16,856.00
Guangyuan Changhong Electronic
Account payable 434,414.70
Technology Co., Ltd.
Mianyang Science & Technology City Big
Account payable 7,540.79
Data Technology Co., Ltd.
Sichuan Changxin Refrigeration Parts Co.,
Account payable 692,843.70
Ltd.
Contract liability Lejiayi Chain Management Co., Ltd. 1,774,510.16 2,227.97
Contract liability Sichuan Changhong Electric Co., Ltd. 750,203.12 997,132.81
Hongyuan Ground Energy Heat Tech. Co.,
Contract liability 108,490.57
Ltd.
Sichuan Service Exp. Appliance Service
Contract liability 12,736.12 15,364.13
Chain Co., Ltd.
Sichuan Changhong Minsheng Logistics Co.,
Contract liability 9,355.42
Ltd.
Sichuan Changhong Gerun Environmental
Contract liability 5,090.51 659,496.67
Protection Tech. Co., Ltd.
Sichuan Changhong Electronics Holding
Contract liability 5,080.00 5,080.00
Group Co., Ltd.
Contract liability Hefei Changhong Industrial Co., Ltd. 4,022.06 6,681.11
Contract liability Sichuan Changhong Real Estate Co., Ltd. 2,154.65
Contract liability CHANGHONG (HK) TRADING LIMITED 945.91 1,011.34
Contract liability 081 Electronic Group Co., Ltd. 25.55 25.55
CHANGHONG ELECTRIC MIDDLE
Contract liability 627.86
EAST FZCO
Contract liability Changhong Huayi Compressor Co., Ltd. 66,037.73
Sichuan Zhiyijia Network Technology Co.,
Contract liability 3,816,946.86
Ltd.
379
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
Item Name Related party Balance at year-end Balance at year-begin
Other payable Yuanxin Financial Lease Co., Ltd. 44,276,743.76 1,315,045.86
Sichuan Changhong Minsheng Logistics Co.,
Other payable 75,964,081.82 520,500.00
Ltd.
Sichuan Changhong Intelligent
Other payable 1,722,946.07 1,282,495.95
Manufacturing Technology Co., Ltd.
Sichuan Changhong Mold Plastic Tech. Co.,
Other payable 1,700,295.88 1,700,295.88
Ltd.
Other payable Changhong Huayi Compressor Co., Ltd. 1,598,900.00 1,598,900.00
Sichuan Changhong Jineng Sunshine
Other payable 500,000.00 553,165.00
Technology Co., Ltd.
Other payable Sichuan Changhong Jijia Fine Co., Ltd. 400,500.00 400,500.00
Other payable Hunan Grand-Pro Intelligent Tech. Company 250,000.00 250,000.00
Other payable Sichuan Changhong Electric Co., Ltd. 163,469.22 5,861,224.39
Sichuan Changhong Package Printing Co.,
Other payable 50,000.00 50,000.00
Ltd.
Other payable 081 Electronic Group Co., Ltd. 47,460.00
Sichuan Changxin Refrigeration Parts Co.,
Other payable 46,702.03 46,702.03
Ltd.
Sichuan Zhiyijia Network Technology Co.,
Other payable 41,940.00 41,940.00
Ltd.
Other payable CHANGHONG (HK) TRADING LIMITED 32,607.64 82,671.18
Other payable Sichuan Jiahong Industrial Co., Ltd. 23,100.04 20,002.24
Sichuan Changhong Gerun Environmental
Other payable 10,000.00 10,000.00
Protection Tech. Co., Ltd.
Sichuan Changhong Precision Electronics
Other payable 0.01 192,717.54
Tech. Co., Ltd.
Mianyang Science & Technology City Big
Other payable 113,450.00
Data Technology Co., Ltd.
Other payable Sichuan Hongxin Software Co., Ltd. 61,978.23
Total 367,301,597.36 418,950,358.95
(iv) Commitments from related parties: Nil
XII. Share-based payment: Nil
XIII. Contingency
1. Pending action or possible liabilities formed from arbitration: Nil
2. Contingency from external guarantee: Nil
3. Other contingency: Nil
XIV. Commitments: Nil
380
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
XV. Events occurring after the balance sheet date
1. Important non-adjustment items: Nil
2. Profit distribution:
For year of 2020, the individual statement of the parent company show net profit of 55,779,302.33
Yuan, according to the auditing from ShinWing CPA (LLP). In accordance with relevant regulations,
the retained profit at beginning of Current Year amounted as 945,907,861.41 Yuan, deducted the 2019
profit distributed 52,229,894.05 Yuan and after extract for statutory surplus reserve 5,577,930.23 Yuan,
the retained profit in individual statement of the parent company cumulative counted as
943,879,339.46 Yuan at end of 2020. In addition, for year of 2020, the net profit attributable to owners
of parent company amounted as -85,565,716.91 Yuan. According to relevant regulations, the
consolidated statement covers and retained profit of 884,127,743.42 Yuan at the beginning of the year,
after deducted the 2019 profit distribution of 52,229,894.05 Yuan and extract for statutory surplus
reserves of 5,577,930.23 Yuan, the cumulative retained profit of the consolidated statement at end of
2020 is 740,754,202.23 Yuan.
According to relevant regulations, the company's profit distribution shall be based on the profit
available for distribution of the parent company, and shall comply with the principle of the lower of
the profit available for distribution in the consolidated statement and the parent company statement.
Therefore, the profit available for distribution in 2020 is the cumulative undistributed profit of
740,754,202.23 yuan in the consolidated statement at the end of 2020.
According to relevant laws and regulations and the "Articles of Association", and comprehensively
considering the interests of shareholders and the company's long-term development needs, it is
proposed to:
The profit distribution plan for year of 2020 was: take the total shares (on the registration date when
implement the equity distribution plan for year of 2020) after deduct the shares that have been
bough-back as the base, distributed 0.5 Yuan (tax included) bonus in cash for every 10-share hold by
all shareholders, no share bonus issued and no capitalizing of common reserves carried out. Up to now,
the actual number of shares available for profit distribution was 1,036,208,993 shares (total shares of
the Company 1,044,597,881 deducted the 8,388,888 shares buy-back ), 51,810,449.65 Yuan cash
dividend is expected to be paid.
381
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
In view of the fact that the Company is implementing share repurchases, the company will use the
total share capital on the equity registration date when the profit distribution plan is implemented in
the future after the deduction of the total share capital after the company repurchases the shares in the
special securities account as the base to adjust the total distribution amount based on the principle of
unchanged distribution ratio. The specific amount is subject to the actual distribution.
After this distribution, it is estimated that the remaining accumulated undistributed profit of the parent
company will be 892,068,889.81 yuan, and the remaining undistributed profit will be carried forward
for distribution in subsequent years.
The above p lan ha s bee n deliberated and appro ved at the 36th meeting of the n inth
board o f d irec to rs o f th e co mpan y, an d it is still to be app ro ved b y the sharehold ers '
meeting.
3. Major sales re turn : Nil
4. Other than the above mentioned events, the Company have no other events occurred after balance
sheet date.
XVI. Other significant matters
1. Correction o f p re vio us period s and in flu ence: Nil
2. Debt restru ctu ring: Nil
3. Assets rep lace ment: Nil
4. P ension p lan : Nil
5. Discon tinu ing op e ra tion: Nil
6. Branch in forma tion
In 10 thousand Yuan
Refrigerator,
freezer Air-condition Small home
Item Other Salesin branch Total
Washing er appliances
machine
Operation income 908,906.53 507,367.20 126,152.43 31,507.23 35,128.37 1,538,805.02
382
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
Refrigerator,
freezer Air-condition Small home
Item Other Salesin branch Total
Washing er appliances
machine
Including: foreign 899,640.15 506,690.97 121,855.45 10,618.45 1,538,805.02
trade income
Income from 9,266.38 676.23 4,296.98 20,888.78 35,128.37
transactions
between divisions
Operation expenses 916,477.77 531,648.15 123,457.98 27,993.41 35,043.84 1,564,533.47
Operation profit -7,571.24 -24,280.95 2,694.45 3,513.82 84.53 -25,728.45
Total assets 1,305,142.67 395,252.48 62,340.58 21,806.63 186,925.41 1,597,616.95
Totalliability 819,298.58 281,329.21 48,890.31 10,587.77 47,037.38 1,113,068.49
Supplementary
information
Depreciation and 21,221.54 14,111.68 500.98 585.67 -471.84 36,891.71
amortization expenses
Capital expenditure 7,299.81 11,374.79 60.44 244.99 11.33 18,968.70
Non-cash expenses 101,684.52 44,748.70 5,721.50 3,906.41 -1,147.53 157,208.66
except for depreciation
and amortization
7. Other major transactions and events shows impact on investor‘s decision-making: Nil
XVII. Notes to main i tems of f inancial statement of parent company
1. Account receivable
(1) Presented according to the bad debt accrual method
Amount at year-end
Category Book balance Bad debt provision
Book value
Amount Ratio Amount Ratio
Account receivable that withdrawal
858,063,066.45 83.09% 3,370,366.42 0.39% 854,692,700.03
bad debt provision by single item
Including: Related party payments 815,741,150.65 78.99% 2,956,149.11 0.36% 812,785,001.54
Account receivable with letter of
38,179,742.75 3.70% 38,179,742.75
credit
Account receivable with single minor
amount but withdrawal single item 4,142,173.05 0.40% 414,217.31 10.00% 3,727,955.74
bad debt provision
Account receivable withdrawal bad
174,658,647.31 16.91% 10,052,329.94 5.76% 164,606,317.37
debt provision by portfolio
Including: account receivable of
6,255,423.49 0.61% 1,250,265.60 19.99% 5,005,157.89
engineering customers
Receivables other than engineering 168,403,223.82 16.31% 8,802,064.34 5.23% 159,601,159.48
383
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
Amount at year-end
Category Book balance Bad debt provision
Book value
Amount Ratio Amount Ratio
customers
Total 1,032,721,713.76 100.00% 13,422,696.36 1.30% 1,019,299,017.40
(Continued)
Amount at year-begin
Category Book balance Bad debt provision
Book value
Amount Ratio Amount Ratio
Account receivable that withdrawal
1,006,525,937.93 86.22% 3,514,443.05 0.35% 1,003,011,494.88
bad debt provision by single item
Including: Related party payments 965,981,524.72 82.75% 965,981,524.72
Account receivable with letter of
37,029,970.16 3.17% 37,029,970.16
credit
Account receivable with single
minor amount but withdrawal single 3,514,443.05 0.30% 3,514,443.05 100.00%
item bad debt provision
Account receivable withdrawal bad
160,872,283.13 13.78% 5,320,388.68 3.31% 155,551,894.45
debt provision by portfolio
Including: account receivable of
390,215.80 0.03% 390,215.80
engineering customers
Receivables other than engineering
160,482,067.33 13.75% 5,320,388.68 3.32% 155,161,678.65
customers
Total 1,167,398,221.06 100.00% 8,834,831.73 0.76% 1,158,563,389.33
1) Provision for bad debts of account receivable on an individual basis
Account receivable with single minor amount but withdrawal bad debt provision singly, refers to the
minor single receivables, and withdrawal bad debt provision by combination shows no risk
characteristic of the receivables, 2 clients involved.
2) Account receivable withdrawal bad debt provision by portfolio
A. Account receivable of engineering customers
Balance at year-end
Account age
Book balance Bad debt Accrual ratio (%)
provision
Within 3 months (3 months included)
Over 3 months and within 6 months (6 months
included)
Over 6 months and within one year (One year 4,095.49
included)
Over one year - within 2 years (2 years 6,251,328.00 1,250,265.60 20.00%
included)
384
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
Balance at year-end
Account age
Book balance Bad debt Accrual ratio (%)
provision
Over 2 years - within 3 years (3 years 50.00%
included)
Over 3 years 100.00%
Total 6,255,423.49 1,250,265.60
B. Receivables other than engineering customers
Balance at year-end
Account age
Book balance Bad debt Accrual ratio (%)
146,638,852.73 1,466,388.53 1.00%
Within 3 months (3 months included) provision
6,980,337.54 698,033.75 10.00%
Over 3 months and within 6 months (6 months
7,880,705.10 1,576,141.02 20.00%
included)months and within one year (One year
1,860,195.93 930,097.97 50.00%
included) year - within 2 years (2 years
4,558,647.27 3,646,917.82 80.00%
Over 2 years - within 3 years (3 years
484,485.25 484,485.25 100.00%
included)years
168,403,223.82 8,802,064.34
Total
(2) By account age
Account age Balance at year-end
Within 3 months (3 months included)
900,770,506.85
Over 3 months and within 6 months (6 months
included) 53,304,435.25
Over 6 months and within one year (One year
included) 23,067,791.45
Over one year - within 2 years (2 years
included) 40,563,920.65
Over 2 years - within 3 years (3 years included)
12,939,952.75
Over 3 years
2,075,106.81
Total 1,032,721,713.76
(3) Bad debt reserves of the account receivable
Amount change in the year
Balance at Balance at
Category Collected or Resale or
year-begin Accrual year-end
switch back write-off
Bad debt
8,834,831.73 7,826,457.13 3,238,592.50 13,422,696.36
provision
385
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
Amount change in the year
Balance at Balance at
Category Collected or Resale or
year-begin Accrual year-end
switch back write-off
Total 8,834,831.73 7,826,457.13 3,238,592.50 13,422,696.36
(4)Top 5 balance of account receivable aggregated by the debtor at end of the year amounted to 771,219,705.53 yuan,
accounted for 74.68% of the receivables at balance of current year-end, the bad debt provision amounted as
2,956,149.11 yuan.
(5)There are no receivables derecognized due to the transfer of financial assets.
(6)There are no receivables and the amount of assets and liabilities formed by continued
involvement
2.Other account receivable
Item Balance at year-end Balance at year-begin
Interest receivable 7,880,186.85
Dividend receivable 661,434.48
Other account receivable 49,093,918.57 33,423,018.09
Total 49,093,918.57 41,964,639.42
2.1 Interest receivable
(1) Category of interest receivable
Item Balance at year-end Balance at year-begin
Interest receivable from time deposit 7,880,186.85
Total 7,880,186.85
(2) Major overdue interest: nil
2.2 Dividend receivable
(1) Category of dividend receivable
Item Balance at year-end Balance at year-begin
Huishang Bank Corporation Limited 661,434.48
(2) Major dividends receivable with account age over 1 year: N/A
386
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
2.3 Other account receivable
(1) By nature
Nature Ending book balance Opening book balance
Related party in consolidation statement 3,521,237.00 4,126,498.15
Related party not in consolidation statement 200,000.00 500,000.00
Loans of employee‘s pretty cash 5,697,517.11 6,014,409.39
Cash deposit 6,507,745.28 1,010,000.00
Export rebates 32,281,664.19 21,650,454.61
Other 935,978.02 133,182.08
Total 49,144,141.60 33,434,544.23
(2) Provision for bad debt of other receivable
First stage Second stage Third stage
Expected credit loss
Expected credit loss
Bad debt reserves Expected credit for the whole Total
for the whole
loss in next 12 duration (credit
duration (no credit
months impairment has
impairment)
occurred)
Balance as at 1st Jan.
11,526.14 11,526.14
2020
Book balance of Other
account receivable in
— — — —
Current Year as at 1 Jan.
2020
--Transfer to the second
stage
--Transfer to the third
stage
--Reversal to the second
stage
--Reversal to the first
stage
Provision in Current
-11,303.11 50,000.00 38,696.89
Year
Reversal in Current
Year
Conversion in Current
Year
Write off in Current
Year
Other change
Balance as at 31st
223.03 50,000.00 50,223.03
December 2020
387
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
(3) By account age
Account age Balance at year-end
Within 3 months (3 months included)
40,726,622.10
Over 3 months and within 6 months (6 months
included) 1,907,662.89
Over 6 months and within one year (One year
included) 713,384.67
over one year-within two years (2 years included)
1,260,700.00
Over 2 years - within 3 years (3 years included)
867,391.90
Over 3 years
3,668,380.04
Total 49,144,141.60
(3) Top 5 balance of other account receivable aggregated by the debtor at end of the year
Proportion of the total Year-end
Balance at year-end balance of other balance of
Name of the unit Nature Account age
year-end receivable bad debt
reserve
State Taxation
Bureau of Hefei
Export Within 3
Economic and 32,281,664.19 65.69%
rebates months
Technological
Development Zone
Hefei Meiling
Related party 3 years and
Electrical 3,338,380.04 6.79%
payments above
Marketing Co., Ltd
Employee Within 3
Ding Lingli 1,304,980.00 2.66%
petty cash months
Employee
Li Di 517,862.93 2-3 years 1.05%
petty cash
Employee
Liu Guilong 510,000.00 6-12 months 1.04%
petty cash
Total — 37,952,887.16 — 77.23%
(4) There are no receivables involving government subsidies
(5)There are no other receivables derecognized due to the transfer of financial assets.
(6) There are no other receivables and the amount of assets and liabilities formed by continued
involvement
388
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
3. Long-term equity investments
(1) Classification of long-term equity investments
Balance at year-end Balance at year-begin
Item
Book balance Impairment loss Book value Book balance Impairment loss Book value
Investment in subsidiaries:
ZhongkeMeilingCryogenicTechnologyCo., Ltd. 42,652,000.00 42,652,000.00 42,652,000.00 42,652,000.00
Mianyang Meiling Refrigeration Co.,
95,000,000.00 95,000,000.00 95,000,000.00 95,000,000.00
Ltd.
Hefei Meiling Electrical Marketing
54,900,000.00 54,900,000.00 54,900,000.00 54,900,000.00
Co., Ltd
Zhongshan Changhong Electric Co.,
304,856,419.37 304,856,419.37 169,856,419.37 169,856,419.37
Ltd.
Sichuan Changhong Air-conditioner
955,600,437.79 955,600,437.79 955,600,437.79 955,600,437.79
Co., Ltd.
Hefei Meiling Group Holdings
113,630,000.00 113,630,000.00 113,630,000.00 113,630,000.00
Limited
Jiangxi Meiling Electric Appliance
79,000,000.00 79,000,000.00 79,000,000.00 79,000,000.00
Co., Ltd.
Changhong Meiling Ridian
91,082,111.12 91,082,111.12 90,802,061.95 90,802,061.95
Technology Co., Ltd.
Meiling CANDY Washing Machine
60,000,000.00 27,675,208.01 32,324,791.99 60,000,000.00 25,082,892.26 34,917,107.74
Co., Ltd.
Hefei Meiling Wulian Technology
6,000,000.00 6,000,000.00 6,000,000.00 6,000,000.00
Co., Ltd.
CH-Meiling.International
6,889,100.00 6,889,100.00
(Philippines) Inc.
Changmei Technology Co., Ltd. 48,128,000.00 48,128,000.00
Investment in associates:
Hefei Xingmei Assets Management 6,826,274.99 6,826,274.99 8,554,613.73 8,554,613.73
389
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
Balance at year-end Balance at year-begin
Item
Book balance Impairment loss Book value Book balance Impairment loss Book value
Co., Ltd.
Sichuan Zhiyijia Network
45,354,700.69 45,354,700.69 47,831,474.41 47,831,474.41
Technology Co., Ltd.
Total 1,861,791,043.96 27,675,208.01 1,834,115,835.95 1,771,955,007.25 73,210,892.26 1,698,744,114.99
(2) Investment in subsidiaries
Balance at Increased in Current Decreased in Current Provision forimpairment Ending balance of
Invested enterprise Balance at year-end
year-begin Year Year losses intheYear impairment
Zhongke Meiling Cryogenic Technology
42,652,000.00 42,652,000.00
Co., Ltd.
Mianyang Meiling Refrigeration Co., Ltd. 95,000,000.00 95,000,000.00
Hefei Meiling Electrical Marketing Co.,
54,900,000.00 54,900,000.00
Ltd
Zhongshan Changhong Electric Co., Ltd. 169,856,419.37 135,000,000.00 304,856,419.37
Sichuan Changhong Air-conditioner Co.,
955,600,437.79 955,600,437.79
Ltd.
Hefei Meiling Group Holdings Limited 113,630,000.00 113,630,000.00
Jiangxi Meiling Electric Appliance Co.,
79,000,000.00 79,000,000.00
Ltd.
Changhong Meiling Ridian Technology
90,802,061.95 280,049.17 91,082,111.12
Co., Ltd.
Changmei Technology Co., Ltd. 48,128,000.00 48,128,000.00
Meiling CANDY Washing Machine Co.,
60,000,000.00 60,000,000.00 2,592,315.75 27,675,208.01
Ltd.
Hefei Meiling Wulian Technology Co.,
6,000,000.00 6,000,000.00
Ltd.
CH-Meiling.International (Philippines)
6,889,100.00 6,889,100.00
Inc.
390
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
Balance at Increased in Current Decreased in Current Provision forimpairment Ending balance of
Invested enterprise Balance at year-end
year-begin Year Year losses intheYear impairment
Total 1,715,568,919.11 142,169,149.17 48,128,000.00 1,809,610,068.28 2,592,315.75 27,675,208.01
(3) Investment in associates
Changes inCurrentYear
Adjustment Cash dividend Ending
Balance at Investment income Other Provision for Balance at
Invested enterprise Additional Negative for other orprofit balance of
year-begin recognizedunder equity impairment Other year-end
Investment Investment comprehensive announced to impairment
equity change loss
income issued
Hefei Xingmei Assets Management Co.,
8,554,613.73 -1,728,338.74 6,826,274.99
Ltd.
Sichuan ZhiyijiaNetwork TechnologyCo.,
47,831,474.41 4,173,014.25 6,649,787.97 45,354,700.69
Ltd.
Total 56,386,088.14 2,444,675.51 6,649,787.97 52,180,975.68
391
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
4.Operation income, operation cost
(1) Operation income and operation cost
Current Year Last Year
Item
Income Cost Income Cost
Main business 5,993,841,897.34 5,587,709,737.76 7,369,698,197.38 6,536,718,301.95
Other business 2,039,108,063.73 1,988,342,535.09 1,926,750,045.91 1,900,843,201.15
Total 8,032,949,961.07 7,576,052,272.85 9,296,448,243.29 8,437,561,503.10
(1) Main business - Classified according to product
Current Year Last Year
Product
Operation income Operation cost Operation income Operation cost
Refrigerator,
5,484,841,178.48 5,093,379,851.08 6,827,193,557.28 6,050,370,840.17
freezer
Washing machine 328,707,340.67 331,857,408.29 123,468,405.74 116,909,031.46
Small household
appliances and
178,264,898.56 160,500,034.70 417,258,605.04 368,071,858.55
kitchen and
bathroom
Other 2,028,479.63 1,972,443.69 1,777,629.32 1,366,571.77
Total 5,993,841,897.34 5,587,709,737.76 7,369,698,197.38 6,536,718,301.95
(2) Main business - Classified according to region
Current Year Last Year
Region
Operation income Operation cost Operation income Operation cost
Domestic 3,092,637,436.35 3,165,520,459.49 5,194,282,583.68 4,678,505,490.95
Overseas 2,901,204,460.99 2,422,189,278.27 2,175,415,613.70 1,858,212,811.00
Total 5,993,841,897.34 5,587,709,737.76 7,369,698,197.38 6,536,718,301.95
Top five clients in sales revenue amounted as RMB 3,617,118,513.26, a 45.03% in total operation income.
5. Investment income
Item Current Year Last Year
Long-term equity investment income by equity method 2,444,675.51 74,962.32
Investment income obtained from disposal of tradable financial assets 47,311,415.04 -25,456,976.70
Income from financial products 7,845,151.69 53,507,866.92
Long-term equity investment income by cost method 69,912,000.00 4,590,000.00
Investment income of other non-current financial assets during holding
27,218,378.81 661,434.48
period
392
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
Item Current Year Last Year
Total 154,731,621.05 33,377,287.02
6. Other
XVIII. Approval of financial statement
The financial statement has already been approved from the board of directors of the Company for
reporting dated 31 March 2021.
393
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
Supplementary inf ormation f or f inancial statement
1. Non-recurring gains and losses for this year
Item Current Year Note
Gains and losses from disposal of non-current assets -2,111,295.55
Governmental subsidy reckoned into current gains/losses (not
including the subsidy enjoyed in quota or ration according to national 99,043,859.77
standards, which are closely relevant to enterprise‘s business)
Losses/gains from changes of fair values occurred in holding trading
financial assets and trading financial liabilities, and investment income
obtaining from the disposal of trading financial assets, trading
123,242,542.42
financial liability and financial assets available-for-sale, excluded
effective hedging business relevant with normal operations of the
Company
Reversal of the account receivable depreciation reserves subject to
5,061,635.85
separate impairment test
Other non-operating income and expenses other than the above 2,434,283.11
Subtotal 227,671,025.60
Less: impact on income tax 34,083,593.36
Impact on minority shareholders‘ equity (post-tax) 1,337,093.24
Total 192,250,339.00 —
2. Return on equity and earnings per share
Weighted average return on Earnings per share/EPS (RMB/Share)
Profit during the report period
equity Basic EPS Diluted EPS
Net profit attributable to ordinary -1.73% -0.0819 -0.0819
shareholders of the parent company
Net profit attributable to ordinary -5.63% -0.2660 -0.2660
shareholders of the parent company
after deduction of the non-recurring
gains/losses
394
CHANGHONG MEILING CO.,LTD. Annual Report 2020
Section XIII. Documents available for Reference
I. Financial statement carrying the signatures and seals of the Chairman, principal of the accounting works and
person in charge of accounting organ;
II. Original auditing report carrying the seal of CPA and autography and seal of the accountants;
III. Original documents of the Company and manuscripts of public notices that disclosed in the website designated
by CSRC in the report period;
The aforesaid documents are all available at headquarter of the Company. The Company would provide them
timely when CSRC and Shenzhen Stock Exchange require or the shareholders need consultation according to the
regulations and Articles of Association.
Chairman: Wu Dinggang
Changhong Meiling Co., Ltd.
31 March 2021
395
