CHANGHONG MEILING CO., LTD.
Semi-Annual Report 2021
August 2021
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
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
2021Semi- 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 by a combination of on-site and
communication.
Modified audit opinions notes
□ Applicable √ Not applicable
Risk warning of concerning the forward-looking statements with future planning involved in semi-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 semi-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 “X. Risks and countermeasures” of “Section III Management Discussion and Analysis”, investors are
advised to read the relevant content.
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.
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CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
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 semi-
annual period
□Applicable √Not applicable
The Company has no plans of cash distribution, bonus shares and capitalizing of common reserves either.
Directors, supervisor and senior executives of the Company respectively signed Written Confirmation Opinions
for 2021 Semi-Annual Report.
Supervisory Committee of the Company formed Written Examination Opinions for 2021 Semi-Annual Report.
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CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
Contents
Section I. Important Notice, Contents and Interpretation ................................................................................... 1
Section II Company Profile and Main Financial Indexes .................................................................................... 5
Section III. Management Discussion and Analysis ............................................................................................... 9
Section IV. Corporate Governance....................................................................................................................... 31
Section V. Environmental and Social Responsibility .......................................................................................... 33
Section VI. Important Events ............................................................................................................................... 38
Section VII. Changes in Shares and Particulars about Shareholders ............................................................... 99
Section VIII. Preferred Stock ............................................................................................................................. 105
Section IX. Corporate Bonds .............................................................................................................................. 106
Section X. Financial Report ................................................................................................................................ 107
Section XI. Documents available for Reference ................................................................................................ 256
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CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
Interpretation
Items Refers to Contents
Company, The Company, Changhong Refers to CHANGHONG MEILING CO.,LTD.
Meiling
Sichuan Changhong or controlling
Refers to Sichuan Changhong Electric Co., Ltd.
shareholder
Sichuan Changhong Electronics Holding Group Co.,
Changhong Group Refers to
Ltd.
Hong Kong Changhong Refers to CHANGHONG (HK) TRADING LIMITED
Industry Investment Group Refers to Hefei Industry Investment Holding (Group) Co., Ltd.
Meiling Group Refers to Hefei Meiling Group Holdings Limited
Zhongke Meiling Refers to Zhongke Meiling Cryogenic Technology Co., Ltd.
Changhong Air-conditioner Refers to Sichuan Changhong Air-conditioner Co., Ltd.
Jiangxi Meiling Refers to Jiangxi Meiling Electric Appliance Co., Ltd.
Zhongshan Changhong Refers to Zhongshan Changhong Electric Co., Ltd.
Ridian Technology Refers to Changhong Meiling Ridian Technology Co., Ltd.
Changmei Life Refers to Hefei Changhong Meiling Life Appliances Co., Ltd.
Changhong Huayi Refers to Changhong Huayi Compressor Co., Ltd.
Shine Wing Refers to Shine Wing Certified Public Accountants (LLP)
CSRC Refers to China Securities Regulatory Commission
China Securities Regulatory Commission, Anhui
Anhui Securities Bureau Refers to
Province Securities Regulatory Bureau
SSE Refers to Shenzhen Stock Exchange
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CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
Section II Company Profile and Main Financial Indexes
I. Company profile
Changhong Meiling,
Short form of the stock Stock code 000521, 200521
Hongmeiling B
Short form of the Stock after changed
N/A
(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)(if applicable)
Foreign name of the Company (if
CHANGHONG MEILING CO.,LTD.
applicable)
Abbr. of English name of the Company
CHML
(if applicable)
Legal representative Wu Dinggang
II. Person/Way to contact
Secretary of the Board
Name Li Xia
Contact add. No. 2163, Lianhua Road, Economic and Technology Development Zone, Hefei
Tel. 0551-62219021
Fax. 0551-62219021
e-mail lixia@meiling.com
III. Others
(1) Way of contact
Whether registrations address, offices address and codes as well as website and email of the Company changed in
reporting period or not
□ Applicable √ Not applicable
Registrations address, offices address and codes as well as website and email of the Company has no change in
reporting period, found more details in Annual Report 2020.
(2) Information disclosure and preparation place
Whether information disclosure and preparation place changed in reporting period or not
□ Applicable √ Not applicable
The newspaper appointed for information disclosure, website for semi-annual report publish appointed by CSRC
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CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
and preparation place for semi-annual report have no change in reporting period, found more details in Annual
Report 2020.
(3) Other relevant information
Whether other relevant information has changed in reporting period or not
□Applicable √Not applicable
IV. Main accounting data and financial indexes
Whether it has retroactive adjustment or re-statement on previous accounting data or not
□Yes √No
Changes in the current reporting
Current period Same period last year period compared with the same
period of the previous year (+,-)
Operating income (RMB) 9,602,759,345.29 6,795,860,736.99 41.30%
Net profit attributable to shareholders of the
37,157,511.54 -210,130,580.93 117.68%
listed company (RMB)
Net profit attributable to shareholders of the
listed company after deducting non-recurring -63,552,415.01 -257,134,663.36 75.28%
gains and losses (RMB)
Net cash flow arising from operating activities
-588,496,116.82 -388,104,958.41 -51.63%
(RMB)
Basic earnings per share (RMB/Share) 0.0356 -0.2012 117.69%
Diluted earnings per share (RMB/Share) 0.0356 -0.2012 117.69%
Weighted average ROE 0.76% -4.29% 5.05 percentage points up
Changes at the end of the reporting
End of current period End of last year period compared with the end of the
previous year (+,-)
Total assets (RMB) 16,883,347,047.17 16,103,355,454.46 4.84%
Net assets attributable to shareholder of listed
4,831,250,533.72 4,854,173,682.43 -0.47%
company (RMB)
V. 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
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CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
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
Amount at period-
Amount in this period Amount in last period Amount at period-end
begin
Chinese GAAP 37,157,511.54 -210,130,580.93 4,831,250,533.72 4,854,173,682.43
Items and amount adjusted by foreign accounting rules
Foreign accounting rules 37,157,511.54 -210,130,580.93 4,831,250,533.72 4,854,173,682.43
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.
VI. Items and amounts of non-recurring profit (gains)/losses
√ Applicable □ Not applicable
In RMB
Item Amount Note
Gains/losses from the disposal of non-current asset (including the write- Found more in “Income from
off that accrued for impairment of assets) -736,583.34 assets disposal”, “non-operation
income & expenditure”
Governmental subsidy reckoned into current gains/losses (not including
the subsidy enjoyed in quota or ration according to national standards, 54,702,099.76 Found more in “Other income”
which are closely relevant to enterprise’s business)
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CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
Losses/gains from changes of fair values occurred in holding trading
financial assets, derivative financial assets, trading financial liabilities and
derivative financial liabilities, and investment income obtaining from the Found more in “Income of fair
disposal of trading financial assets, derivative financial assets, trading 58,849,862.38 value changes”, “Investment
financial liability, derivative financial liability and other debt investment, income”
excluded effective hedging business relevant with normal operations of
the Company
Reversal of the account receivable and contract assets depreciation Found more in “Account
1,228,611.25
reserves subject to separate impairment test receivable”
Other non-operating income and expenditure except for the ”Found more in “Non-operation
aforementioned ones 5,629,332.53
income & expenditure”
Less: impact on income tax 17,645,671.62
Impact on minority shareholders’ equity (post-tax) 1,317,724.41
Total 100,709,926.55
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 SEMI-ANNUAL REPORT 2021
Section III. Management Discussion and Analysis
I. Main businesses of the company engaged in during the Period
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”, the “National Industrial
Design Center” and “2020 Top 10 Light Industry Technology Enterprises in China” 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. At the 2021 AWE Award Ceremony, "Very Clean" BCD-
503WUP9BQ, the company's new high-end refrigerator won the AWE Excellent Product Award for its excellent
product design and innovative intelligent technology. In the China Refrigerator Industry Symposium, 2021,
Meiling refrigerator stood out, with its leading fresh-keeping technology and excellent quality, "Very clean" BCD-
503WUP9BQ won the "Fresh Clean Star", and "Star" refrigerator BCD-532WPUCY won the "Outstanding
Channel Performance Product Award". At the same time, with its deep cultivation and innovation in fresh-keeping
technology, the company won the only "Annual Pioneer Freshness-Preservation Brand" award of China
refrigerator industry.
In recent years, driven by the industry transformation and upgrades and consumption upgrades, the Company
always adheres 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
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CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
air-conditioning products, “M-Fresh” refrigerators, “M-Fresh” comprehensive thin series products and “very
clean” series of refrigerators, Meiling always leads the trend of the industry by solving the pain points of users
effectively. In April 2021, the company joined hands with Jingdong and launched the "Star" series of mother and
infant refrigerators equipped with LINF spectral plasma technology, which meets the rigid needs of infants &
moms in different stages of getting ready for pregnancy, pregnancy and parenting. In July 2021, the second
generation of "M Fresh" series products with "zero shock" and "slight freeze" fresh-keeping technology were
launched, breaking through the restricted area of traditional refrigerator refrigeration and freezing technology, and
opening a new competitive track of partially frozen storage in the refrigerator industry.
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 907,601.96 million Yuan, a
94.51% of the operating income.
II. 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
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 terms of continuous innovation of core technologies, on the one hand, the company continuously promoted the
innovation of fresh-keeping, intelligent and frequency conversion 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 frozen preservation technology of “zero impact” and “micro-freezing”, the
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CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
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, and provide a new embedded experience solution for users. 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, “M-Fresh” second generation series
refrigerators, “very-clean” series of refrigerator products, “very-thin” series of washing machine, AC constant
temperature fresh air cabinet machine, dust-free separated, intelligent voice tea-bar machine and intelligent
electric water heater 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
For more than 30 years, the company has been focusing on the refrigeration industry, and has developed a number
of different models of refrigerators, mainly including the "M fresh" first generation series of fresh-keeping
refrigerators carrying water molecule activation preservation technology, the "M fresh"second generation series of
fresh-keeping refrigerators with "zero shock" and "slight freeze" fresh-keeping technology, "Star" series mother
and infant refrigerators, "Very Clean" series fresh-keeping and cleaning refrigerators, comprehensive thin product
extension 503 series refrigerators, CHiQ series high-end intelligent refrigerators and air conditioners, 0.1℃
double precision refrigerator with inverter, North American air cooling products, vertical display cabinets, DW-
HL550 independent double temperature zone double control ultra-low temperature low temperature freezer, etc. In
particular, the company's latest "M Fresh" second generation series of fresh-keeping refrigerators accurately
realize preservation - 3.5℃ through zero shock and slight freeze technologies, bringing users three fresh-keeping
experience, i.e. fresh meat preservation for 33 days, zero loss of nutrition, cutting meat without waiting. The "Very
Thin" direct drive roller series washing machines developed by the company adopt innovative technology
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CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
magnetic suspension ultra-thin DD motor, realizing the product philosophy of "direct drive is cleaner", the main
performance indicators such as noise and energy efficiency have reached the advanced level at home and abroad.
The CHIQ series of air-conditioned constant temperature fresh air cabinet Q6G products use the industry's initial
rear-mounted dual-channel independent fresh air technology, which have 95m/h oversized fresh air volume, and
are easy to achieve air ventilation once an hour, its mute is as low as 23 decibels, so that users can enjoy more
comfortable and thermostatic fresh air.
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. 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, odour clean,
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
The Company continues to carry out the whole value chain benchmark work to improve the operation
management and competitiveness of the Company. On the basis of the target-oriented performance appraisal,
innovation GPI (employee performance growth indicators) management model establishes a sense of competitive
cooperation for the external and forms a competitive innovation atmosphere for the internal, effectively activates
the team, and improves the employee vitality index. And at the same time, we continue to improve the internal
control system and enhance the ability to prevent risks.
(4) Marketing ability
The Company has established a relatively complete sales network and service system, which can provide users
with high-quality services covering all categories of white goods. The domestic market is accelerated to realize the
marketing transformation from product line-oriented sales management to channel- and user-oriented business
services, from single-category marketing to full-category marketing. In overseas markets, the company increased
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CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
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 many countries and regions.
III. Main Business Analysis
(1) Overview
Whether the disclosure is the same as the main businesses of the company engaged in during the Period
□Yes √No
1. Introduction
In the first half of 2021, as the country's pandemic prevention and control work became normal, the COVID-19
pandemic stabilized and the domestic economy recovered and entered the phase of normal development.
Reviewing the first half of the year, the white household appliances market showed a rebound trend and achieved
a homogeneous increase in quantity and amount, but the growth rate of the white household appliances market is
gradually narrowing, considering the low base caused by the pandemic and other factors in the same period last
year, the environment faced by the white household appliances market in the second half of the year may become
severe again. At the same time, consumers' consumption mode and concept have changed, and their consumption
psychology has become more rational and they are more in pursuit of healthy, intelligent, high-end and
personalized products, which also forces enterprises to accelerate the adjustment of product structure, improve
product quality and service ability, and innovate channel reform.
In the first half of the year, the Company seized the opportunity of industry recovery and achieved a y-o-y growth
in entire product lines, the overall performance has turned into a profit and achieved a healthy growth. During
the reporting period, The company operating income increased 41.30% on a year-on-year. Net profit attributable to
shareholders of listed companies increased 117.68% year on year.Among them, the income from business of
refrigerator and freezer approximately amounted to 40.84 million yuan, a y-o-y growth of 39.82%; AC business
achieved an operating income of approximately 39.59 million yuan, a y-o-y growth of 52.50%; washing machine
business have an income of approximately 3.23 million yuan, a y-o-y growth of 79.37%; kitchen & bathroom and
small home appliance business achieved an income of approximately 5.72 million yuan, a y-o-y growth of
11.54%; refrigeration accessories and other products achieved an operating income of about 1.39 million yuan, a
y-o-y growth of 134.98%. In addition, the foreign business achieved an income from main business of 26.84
million yuan, a y-o-y growth of 15.10%.
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 “market
driven, product leading, efficiency breakthrough and team activation” in 2021, the company has deployed the
annual business plan, arranged the production and management, and carried out the following activities:
(1) Market driven
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CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
In the domestic market, we unswervingly carry out the transformation of marketing organization, and realize the
scale growth and the benign development of operation under the tone of "raising the average price, adjusting the
structure and controlling the profits and losses". By creating the competitive and hot sale products, we implement
transformation and upgrading for offline channels and strengthen the attack on online channels. On the operation,
we strengthen the market drive, improve product operation, marketing and other capabilities through the vertical
management of the organization. In the first half of this year, the revenue of domestic refrigerator and washing
machine increased by 40%, and the sales of key products increased by 50%. However, due to the impact of
sinking channels and O2O share, the online share did not meet expectations. According to the data of AVC, the
online share of refrigerator was 5.01%, a year-on-year decline of 1.02 percentage points. Domestic air
conditioning and bio-medical revenue increased significantly; the kitchen, bathroom and small home appliances
industry further focused on water ecology, with revenue growth of nearly 12%. In the overseas market, due to the
impact of high ocean freight and rising material costs, backlog of overseas orders and extended lead time, despite
the growth of revenue, the profit and loss pressure was great.
(2) Product leading
In April 2021, the company joined hands with Jingdong and launched the "Star" series of mother and infant
refrigerators, its LINF spectral plasma technology can actively inhibit and eliminate bacteria in the independently
sealed exclusive area for mothers and infants, realizing the long-term safe storage of breast milk, complementary
food and fresh food ingredients. It can solve the storage needs of mothers and infants for breast milk and
complementary food, and meet the diversified needs of mothers and infants in different stages of pregnancy
preparation, pregnancy and parenting, bringing new storage solutions to users.
In May 2021, Meiling released new "Very Thin" direct-drive front loading washing machines MG100-14596DLX
and MG100-14596DHLX. The above washing machines are equipped with Meiling Sixth Generation Magnetic
Suspension Black Technology on the basis of conical bulging technology, inclined barrel stabilization technology
and cloud tray condensed technology, which not only make the inner barrel increase to 530 mm in diameter, depth
reduce to 487 mm, 10 centimeters thinner than a traditional washing machine, the thinnest product of the same
specification in the industry, but also eliminate the friction and vibration brought by the traditional belt drive, the
smooth operation brings light tone and noise reduction, the washing sound is only 52dB (A), far below the
national standard 16%. Ultra-high standard technology highlights the core strength of the brand in the core
technology field of washing machine.
In July 2021, the company launched the second generation of "M Fresh" series of new products, which created the
third freshness preservation state - slightly frozen. By looking for the gold temperature of fresh meat preservation
(-3.5℃), we developed two core technologies, i.e. zero shock and slight freeze, and combined with the special
insulation and sealing zone, the sensor and algorithm of precise temperature control, the special zero wind sense
air channel and the new energy storage module, so that the fresh meat is in a slightly frozen state, thereby
reducing the damage to cells and tissues, greatly extending the shelf life and keep the food in a fresh state for a
long time, so as to provide consumers with better high-end quality experience.
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CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
During the reporting period, the company promoted the deepening research and ability improvement of core
technology, key technology and hardcore technology through the close combination of technology enabling and
product application, and product competitiveness continuously strengthened. In the first half year, we continued to
promote "fresh, thin, clean" refrigerator, "thin, large, simple" washing machine, "very quiet, very power-saving,
very intelligent" air conditioning, and released a variety of products, such as "M Fresh" second generation fresh-
keeping refrigerator, DD direct-drive front-loading washing machine, etc., and spared no effort to make
differentiated, high-profit and high-quality products with Meiling characteristics. At the same time, in terms of
enhancing product competitiveness, the company has launched a product competitiveness model, which evaluates
the product arrays and the appearance, price, quality, experience and others of single product, and constantly
improves product competitiveness. During the reporting period, the success rate of new refrigerator and freezer
was improved. BCD-331WUP9B refrigerator and BCD-415WQ3S refrigerator were awarded the New Product
Certificate of Anhui Province, which not only marked that Meiling's technological innovation strength was widely
recognized by the industry and the society, but also demonstrated Meiling's continuous innovation and satisfaction
of user needs.
(3) Efficiency breakthrough
Comprehensively carry out benchmarking, and strengthen internal efficiency. Focus on promoting product cost
benchmarking, foaming efficiency benchmarking, sales expense benchmarking, gross profit benchmarking and
other work, and has achieved phased results, there into, reduced the impact of the price rise of bulk materials on
the cost through the cost control of each link, the single refrigerator manufacturing cost decreased by about 4%
year on year, the gross profit margin of domestic refrigerator and washing machine increased by more than 2
percentage points year on year, and the sales expense ratio decreased by more than 5 percentage points year on
year. In terms of digital transformation, the company has established a digital transformation leadership group and
a working group to promote the company's digital transformation in terms of digital support business, digital value
creation, digital driven innovation, digital basic capabilities and other dimensions. At the same time, the
company's industrial Internet enterprise network security project is the pilot demonstration project for the Ministry
of Industry and Information Technology. In terms of management improvement, we carry out the "system
improvement mode with excellent performance mode as the framework", and promote the continuous
improvement of the company by looking for and improving the weak points.
(4) Team activation
Promote the improvement of the company's performance evaluation and incentive system, and realize employees'
self-drive, self-promotion and self-transcendence. Built "KPI + GPI + value sharing" three layers of incentive
system, formed a sense of competition for the outside, and formed a competitive atmosphere for the inside,
distinguished the competition mechanism for different service grades and post categories, established a structured
pay adjustment mechanism, implemented the differentiated salary adjustment + talent reserve optimization,
greatly activated the team, and the employee vitality index increased by 42% on a year-on-year basis in the first
half of the year.
15
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
(2) Y-o-y changes in the key financial data
In RMB
Current Period Same period last year Y-o-y changes (+,-) Causes
Due to the impact of COVID-19 outbreak in the
Operation revenue 9,602,759,345.29 6,795,860,736.99 41.30%
same period of the previous year
Operation cost 8,177,231,196.17 5,753,849,889.35 42.12% Same as “Operation revenue”
Sales expense 984,805,928.94 923,983,428.23 6.58% No major changes
Administrative expense 152,957,426.98 135,469,692.92 12.91% No major changes
Due to the declined of interest income and
Financial expense -5,695,990.10 -12,868,114.05 55.74%
increase of exchange losses in the Period
The increase in income tax expenses resulted
Income tax expenses 37,086,971.38 -2,863,011.42 1,395.38% from the increase of taxable income for the
Period
R&D investment 217,199,272.52 226,678,153.36 -4.18% -
Net cash flow from Due to the current period of the company to
-588,496,116.82 -388,104,958.41 -51.63%
operation activity increase restricted funds.
Net cash flow from
-699,480,638.02 -705,571,689.24 0.86% No major changes
investment activity
Net cash flow from Due to the y-o-y decrease in loans and y-o-y
-356,001,274.24 501,761,856.98 -170.95%
financing activity increase in debt payments in the Period
Net increased amount of The net cash flow arising from operation and
-1,657,978,314.35 -593,339,307.44 -179.43%
cash and cash equivalent financing activities declined on a y-o-y basis
The forward foreign exchange contract delivery
Investment income 52,533,705.90 7,151,886.26 634.54%
proceeds increased from a year earlier.
Credit impairment loss Credit impairment loss on account receivable
-15,121,003.89 -22,270,221.19 -32.10%
decreased from a year earlier
Loss on decline in value of inventories increased
Assets impairment loss -43,310,366.42 -26,583,248.58 62.92%
from a year earlier
(3)Major changes on profit composition or profit resources in reporting period
□ Applicable √ Not applicable
No major changes on profit composition or profit resources occurred in reporting period
(4) Constitute of operation revenue
In RMB
Current Period Same period last year
Y-o-y
Ratio in operation Ratio in operation changes (+,-)
Amount Amount
revenue revenue
Total operation revenue 9,602,759,345.29 100% 6,795,860,736.99 100% 41.30%
According to industries
Manufacture of household appliances 9,076,019,575.56 94.51% 6,268,491,126.30 92.24% 44.79%
Other business 526,739,769.73 5.49% 527,369,610.69 7.76% -0.12%
According to products
Refrigerator, freezer 4,083,961,202.33 42.53% 2,920,923,251.77 42.98% 39.82%
Air-conditioning 3,958,753,350.50 41.23% 2,595,885,454.11 38.20% 52.50%
Washing machine 322,671,076.35 3.36% 179,892,246.84 2.65% 79.37%
Small appliance and kitchen & toilet 571,948,185.39 5.96% 512,769,500.40 7.54% 11.54%
Other products 138,685,760.99 1.44% 59,020,673.18 0.87% 134.98%
Other business 526,739,769.73 5.48% 527,369,610.69 7.76% -0.12%
16
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
According to region
Domestic 6,912,387,260.07 71.98% 4,457,906,168.90 65.60% 55.06%
Foreign 2,690,372,085.22 28.02% 2,337,954,568.09 34.40% 15.07%
(5)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/decrea
Increase/decrease Increase/decrease
Gross profit se of gross
Operation revenue Operation cost of operation of operation cost
ratio profit ratio y-o-
revenue y-o-y y-o-y
y
According to industries
Manufacture of
household 9,076,019,575.56 7,709,772,571.05 15.05% 44.79% 46.90% -1.22%
appliances
According to products
Refrigerator, freezer 4,083,961,202.33 3,333,608,452.02 18.37% 39.82% 40.20% -0.23%
Air-conditioning 3,958,753,350.50 3,540,481,498.57 10.57% 52.50% 57.54% -2.86%
Small appliance and 571,948,185.39 474,186,822.18 17.09% 11.54% 11.18% 0.26%
kitchen & toilet
According to region
Domestic 6,392,384,758.43 5,212,930,284.17 18.45% 62.37% 60.35% 1.03%
Foreign 2,683,634,817.13 2,496,842,286.88 6.96% 15.10% 25.00% -7.37%
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
□ Applicable √ Not applicable
(6) Reasons for y-o-y relevant data with over 30% changes
√ Applicable □ Not applicable
Refrigerator, freezer, AC products and the operation revenue and costs from China has increased on a y-o-y basis,
mainly due to the impact of COVID-19 epidemic at same period last year.
IV. Analysis of the non-main business
√ Applicable □Not applicable
In RMB
Whether be
Ratio in
Amount Note sustainable
total profit
(Y/N)
The delivery earnings from forward foreign exchange contract in the
Investment income 52,533,705.90 56.62% N
period
Gains/losses from
-9,731,654.29 -10.49% Loss from fair value changes of the forward foreign exchange contract N
change of fair value
17
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
Asset impairment -43,310,366.42 -46.68% Accrual of the loss on decline in value of inventories N
Non-operating income 5,862,320.71 6.32% N
Non-operating expense 760,592.62 0.82% N
Other income 57,250,100.93 61.70% Government subsidy received in the period N
Accrual of the credit impairment loss on account receivable in the
Credit impairment loss -15,121,003.89 -16.30% N
period
V. Analysis of assets and liability
(1) Major changes of assets composition
In RMB
End of current period Year-end of last year
Ratio
Ratio in Ratio in changes Notes of major changes
Amount Amount
total assets total assets
The net cash flow from operation, investment
Monetary fund 5,310,519,267.78 31.45% 6,594,786,789.98 40.95% -9.50%
and financing activities declined in the period
Due to the increase of operation revenue in
Account receivable 2,546,059,071.18 15.08% 1,130,275,780.66 7.02% 8.06%
the period
Due to the increase in inventory production in
Inventory 2,285,488,785.06 13.54% 1,715,354,951.43 10.65% 2.89%
the period
Investment real estate 54,108,683.17 0.32% 53,888,462.00 0.33% -0.01% No major changes
Long-term equity
59,080,517.76 0.35% 76,982,822.38 0.48% -0.13% No major changes
investment
Fix assets 2,350,222,653.32 13.92% 2,391,859,440.31 14.85% -0.93% No major changes
Construction in
70,466,482.26 0.42% 60,775,088.96 0.38% 0.04% No major changes
progress
Due to the implementation of new lease
Right-of-use assets 20,282,488.32 0.12%
standards in the period
Due to the repayment of short-term loans in
Short-term loans 869,283,195.68 5.15% 1,336,209,050.55 8.30% -3.15%
the period
Received in advance from customers declined
Contractual liability 344,400,472.19 2.04% 522,550,891.28 3.24% -1.20%
in the period
Long-term loans 178,000,000.00 1.05% 188,231,439.30 1.17% -0.12% No major changes
Due to the implementation of new lease
Lease liability 12,529,575.32 0.07%
standards in the period
(2) Main overseas assets
√ Applicable □ Not applicable
Whether
Reaso
Foreign assets exist
n for Operat
Control measure to ensure the security accounted for significant
Content of assets the Asset size Location ion Income (RMB)
of assets net assets of impairme
format mode
the Company nt risk
ion
(Y/N)
Invest
US$ 7.803 Details of risks control measures have
60% equity of Changhong ment Pakistan Sales -1,362,646.63 -0.02% N
Ruba Trading Company million been disclosed by the Company by way
establi
18
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
shmen of announcement on appointed media
t (No. 2011-028, No. 2011-032, No.
2014-023, No. 2014-026, No. 2016-027,
No. 2016-032, No. 2017-053 and No.
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
40% equity of Changhong ment of announcement on appointed media
US$ 6.9761 Manuf
Ruba Electric establi Pakistan (No. 2011-028, No. 2011-032, No. 236,565.85 -0.06% N
million acture
Company(Private)Ltd. shmen 2014-023, No. 2014-026, No. 2017-053
t and No. 2017-059) on 28 May 2011, 19
April 2014 and 10 August 2017
Details of risks control measures have
KELAPA
Invest been disclosed by the Company by way
100% equity of
ment GADING,
CHANGHONG US$ 6 Sales of announcement on appointed media
establi -1,370,349.45 0.44% N
MEILING ELECTRIC million JKT,
shmen (No. 2016-027 and No. 2016-033) on 25
INDONESIA. PT
t Indonesia
March 2016
Invest
Details of risks control measures have
100% equity of CH- ment
US$ 1 Philippine been disclosed by the Company by way
Meiling International establi Sales -351,217.75 0.11% N
million s of announcement on appointed media
(Philippines) Inc. shmen
(No. 2019-083) on 7 December 2019.
t
Other notes N/A
(3) Assets and liability measured by fair value
√Applicable □ Not applicable
In RMB
Accumulat
Devaluatio
Changes of fair ive
n of
Amount at the value changes of Amount of Amount at end of
Items withdrawin Sales in the Other changes
purchase in the
beginning period gains/losses in fair value period the period
g in the period
this period reckoned
period
into equity
Financial assets
1.Trading financial
assets (derivative
47,242,339.07 -11,569,560.58 1,420,000,000.00 700,000,000.00 755,672,778.49
financial assets
excluded)
Receivable financing 1,632,388,702.83 -499,921,133.85 1,132,467,568.98
Other non-current
548,148,931.34 548,148,931.34
financial assets
Subtotal of financial
2,227,779,973.24 -11,569,560.58 1,420,000,000.00 700,000,000.00 -499,921,133.85 2,436,289,278.81
assets
19
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
Above total 2,227,779,973.24 -11,569,560.58 1,420,000,000.00 700,000,000.00 -499,921,133.85 2,436,289,278.81
Financial liabilities 4,584,076.51 -1,837,906.29 2,746,170.22
Other changes:
Other changes in the receivable financing were that the notes receivables that both aimed at collecting contractual cash flow
(collection) and selling (endorsed or discounted) during the current period declined.
Whether there have major changes on measurement attributes for main assets of the Company in report period or
not
□Yes √ No
(4) 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 other assets have restriction on rights found more in relevant content of “59. Assets with
restricted ownership or use rights” in “VI. Note of consolidate financial statement” carried under Section X.
Financial Report
VI. Investment analysis
(1) Overall situation
√Applicable □ Not applicable
Investment in the same period of last year
Investment in the reporting (RMB) Changes
( RMB)
45,000,000.00 155,280,049.17 -71.02%
(2) The major equity investment obtained in the reporting period
√Applicable □ Not applicable
20
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
In RMB
Whet
her
Metho Capita Term invol Date of Index of
Status as of Expect Current
Name of d of Amount of Shareholdi l of Type of ved disclosure (if disclosure (if
Principal business Partners the balance ed investment
invested invest investment ng ratio source invest products in a applicable applicable
sheet date return profit and loss
ment s ment laws ) )
uit(Y
/N)
Research and development, and sales of household
electrical appliances, non-electrical home
appliances, gas cookers, gas water heaters, wall-
mounted gas furnace, instantaneous electric water
heater (wall-mounted electric heating furnace),
regenerative series electric heaters, direct heating
series electric heaters, kitchen and bathroom Ningbo
R&D and
furniture, audio-visual equipment, radio and Hongling
Hefei sales of Juchao
television equipment, computers, communications Enterprise Contributed
Changhon household Not Website:
and other electronic devices, indoor decoration Newly Managem investment
g Meiling Own Long- appliances, app http://www.cn
materials, general equipment, pure water establi 35,000,000 70% ent of 35 12,159,618.63 N 2020-12-12
Life fund term kitchen lica info.com.cn
equipment, luggage, personal care, personal shed Partnershi million yuan
Appliances appliances and ble (Notice No.:
hygiene products, health appliances, massage p (Limited in the period
Co., Ltd. small home 2020-097)
equipment, hardware and general merchandise; Partnershi
appliances
Software and information technology services; p)
Enterprise management consulting services; sales of
category II & III medical devices; Import and
export of goods or technologies (except those
prohibited by the state or involving administrative
approval).
21
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
Production of category I medical devices; sales of
category I medical devices; sales of category II
medical devices; Software development; (in
Anhui addition to licensing business, the company can Juchao
R&D, Contributed
Ling'an independently operate the projects not prohibited or Not Website:
Newly production investment
Medical restricted by laws and regulations) Licensed Own Long- app http://www.cn
establi 10,000,000 63.2683% N/A and sales of of 10 -1,594.36 N 2021-3-03
Equipment projects: Production of category III medical fund term lica info.com.cn
shed medical million yuan
Co., Ltd. devices; Production of category II medical devices; ble (Notice No.:
note 1
devices in the period
Operation of category III medical devices (for 2021-008)
projects subject to approval according to law,
business activities can be carried out only after
approval by relevant departments)
Total -- -- -- -- -- -- -- -- -- -- 12,158,024.27 -- -- --
Note 1: After the deliberation and approval of the 5th meeting of the tenth 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 Ling'an Medical Equipment Co., Ltd. The Company holds 63.2683% equity of Zhongke Meiling, so the
Company indirectly holds 63.2683% equity of Anhui Ling'an Medical Equipment Co., Ltd.
(3)The material non-equity investment in the reporting period
√Applicable □ Not applicable
In RMB
Industry Accrued
Invest Invested involved Accrued Actual Realized
Investment Amount Capita Reasons for not Reaching the
Project ment with fixed in Investment Amount Anticipated Income up to Disclosed Date Disclosed Index (if
in this Reporting l Project Schedule Planned Schedule and
Name Metho assets Investm up to the End of Income the End of (if any) any)
Period Source Anticipated Income
d (Y/N) ent Reporting Period Reporting
Projects Period
Production Manufac ”Production The production During the reporting period, Juchao Website:
Self- Fund- Approximatel 2019-7-9; 2019-
base project Y ture of 19,418,148.19 94,904,042.29 base project of capacity of one due to the impact of the http://www.cninfo.co
built raising y -49,500,000 7-26
of annual househol annual output of million sets of capacity climbing and m.cn (Notice
22
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
output of 2 d 2 million automatic roller yuan COVID-19 pandemic, the No.:2019-040, 2019-
million applianc washing washing company product sales and 041, 2019-042,
washing es machines(Phase machine shall be and the rise in prices of bulk 2019-043 and 2019-
machines(Ph industry II) ” has mass formed after this materials, depreciation and 047)
ase II) production project being amortization, etc., the project
already. Up to put into incurred a loss in the
now, the balance operation reporting period.
is still in the
process of
payment.
Total -- -- -- 19,418,148.19 94,904,042.29 -- -- -- -- -- -- --
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) ". Currently, the second phase of the project ( roller production line) has been formally put into operation.
(4)Financial assets investment
1. Securities investment
□ Applicable √ Not applicable
The Company had no securities investment in the reporting period.
23
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
2. Derivative investment
√Applicable □Not applicable
In 10 thousand Yuan
Amount of Ratio of
reserve for investment
Amount Amount sales Actual
Related Whether Investment devaluation Investment amount at
purchased in in the gains/loss
Operator relations related trade Type Initial investment Start date End date amount at of amount at period-end in
the reporting reporting es in
hip or not(Y/N) period-begin withdrawing period-end net assets of
period period period
(if the Company
applicable) at period-end
Financial Forward foreign
N/A N 334,471.07 2020-4-27 2021-12-31 184,610.32 246,253.80 235,179.18 - 186,993.75 39.11% 6,756.44
institution exchange contract
Total 334,471.07 -- -- 184,610.32 246,253.80 235,179.18 - 186,993.75 39.11% 6,756.44
Capital resource Own fund
Lawsuit involved (if applicable) Not applicable
Disclosure date for approval from the Board for
2021-3-31
investment of derivatives (if applicable)
Disclosure date for approval from board of
shareholders for investment of derivatives (if 2021-4-29
applicable)
Risk analysis:
Risk analysis and controlling measures for derivatives 1. Market risk: domestic and international economic situation changes may lead to exchange rate fluctuations, forward foreign exchange transactions
holdings in the Period (including but not limited to are under certain market risk. Forward foreign exchange business is aiming to reducing impact on corporate profits by foreign exchange settlement
market risk, liquidity risk, credit risks, operation risk and sale prices, exchange rate fluctuations. The Company will follow up the exchange fluctuation, on the basis of target rate determined from the
and law risks etc.) business, relying on the research of the foreign currency exchange rates, combined with prediction of consignments, and burdening ability to price
variations due to exchange rate fluctuations, then determine the plan of forward foreign exchange contracts, and make dynamic management to the
24
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
business, to ensure reasonable profit level.
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 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
price or fair value in the Period, as for analysis of the Business Enterprises No.22 - Recognition and Measurement of Financial Instruments. Fair-value is basically obtained according to prices offered by
fair value of derivatives, disclosed specific applied bank and other pricing services. While fair-value of derivatives is mainly obtained according to the balance between prices given by outstanding
methods and correlation assumption and parameter contracts and forward prices given by contracts signed during the reporting period with bank. The differences are identified as trading financial assets
setting and liabilities. During the reporting period, forward foreign exchange contracts and losses of the Company is 67.5644 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 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
Special opinion on derivative investment and risk these deals were conducted within the authorization scope under general meeting and board meeting. The Company conducts no foreign exchange
control by independent directors transactions on the purpose of getting profit only, all of the forward foreign exchange transactions are operates closely related to the routine operation
requirement of the Company and based on normal operating and production, which is relying on specific business operations with purpose of
avoiding the preventing the risks in exchange rate. The forward foreign exchange transactions of the Company are beneficial to prevent the exchange
risks exposed by import and export business and thus met its requirement for operation development. There was no speculative operation, no break of
25
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
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.
VII. Sales of major assets and equity
(1) Sales of major assets
□ Applicable √ Not applicable
The Company had no sales of major assets in the reporting period.
(2) Sales of major equity
□ Applicable √ Not applicable
VIII. Analysis of main holding company and stock-jointly companies
√ Applicable □ Not applicable
(1) 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 Operation revenue Operation profit Net profit
Research and development,
Zhongke Meiling Cryogenic Technology
Subsidiary manufacturing and sales of ultra- 72,548,200 562,891,255.98 234,817,848.15 271,384,729.79 62,997,212.48 51,828,122.35
Co., Ltd.
low temperature freezer
Jiangxi Meiling Electric Appliance Co., Manufacturing of refrigeration and
Subsidiary 50,000,000 289,684,133.15 125,693,195.59 408,914,804.45 6,787,452.84 6,787,852.84
Ltd. freezer
Mianyang Meiling Refrigeration Co., Ltd. Subsidiary Manufacturing of refrigeration and 100,000,000 183,176,328.15 116,053,418.10 157,036,940.68 -5,594,294.21 -5,434,748.98
26
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
freezer
Sichuan Changhong Air-conditioner Co., R&D, manufacturing and domestic
Subsidiary 850,000,000 3,999,238,014.59 1,097,804,096.05 2,825,810,636.77 9,585,636.92 8,601,022.12
Ltd. sales of air-conditioning
R&D, manufacturing and foreign
Zhongshan Changhong Electric Co., Ltd. Subsidiary 334,000,000 1,525,527,289.36 83,934,524.48 1,418,924,411.44 -35,801,547.60 -36,002,458.45
sales of air-conditioning
Hefei Meiling Group Holdings Limited Subsidiary Sales of white goods 80,000,000 1,751,871,144.29 -189,481,653.04 2,705,878,293.96 -51,345,734.38 -50,867,994.49
R&D, manufacturing and sales of
Changhong Meiling Ridian Technology
Subsidiary kitchen and toilet products, small 83,000,000 346,311,165.19 132,442,908.47 152,108,811.31 -1,864,874.26 -2,059,812.01
Co., Ltd.
home appliances and water purifier
R&D and sales of household
Hefei Changhong Meiling Life
Subsidiary appliances, kitchen appliances and 50,000,000 317,064,609.76 67,370,883.75 486,144,189.56 23,101,170.19 17,370,883.75
Appliances Co., Ltd.
small home appliances etc.
27
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
(2) 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
The controlling subsidiary of the Company, it was established by the subsidiary of the
Company- Zhongke Meiling with registered capital of 10 million yuan. The company was
Anhui Ling'an Medical
Investment establishment established to further expand business scope in the biomedical filed for Zhongke Meiling,
Equipment Co., Ltd
to further develop its business in the life science segment and to enhance the Zhongke
Meiling’s core competitiveness.
(3) Description of the holding company and stock-jointly companies
The Company has no important holding company and stock jointly companies that need to disclosed in the period
IX. Structured entity controlled by the Company
□Applicable √ Not applicable
X. Risks and countermeasures
(1) risks and countermeasures
In the second half of 2021, domestic home appliance market demand is under pressure, while exports are affected
by transportation costs and market factors. The company will face operational risks such as severe industry
conditions, increased competition, rising costs, global and domestic fluctuations and repetitions of COVID-19
pandemic.
1. Macroeconomic risks
The fluctuations and repetitions of COVID-19 pandemic have had a negative impact on the global and domestic
economic situation. If there are major fluctuations in the global economy, the growth of domestic and foreign
macro economy or consumer demand will slow down, which will have a certain impact on the consumer demand,
production and sales of the company's products and businesses.
2. Raw material price fluctuation risks
The raw materials of the company's main products are black and white materials, steel, copper, aluminum and so
on, but affected by the pandemic, their prices rose continuously from May last year to the high level in the first
half of this year. The company's profit stress is increased by the continuous rise of production costs.
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. Risk of price fluctuations in international transport
28
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
Affected by the pandemic and the growing international demand for raw materials such as iron ore, container and
shipping capacity is strained, resulting in the rise of international transportation costs, which will have an impact
on the company's export business.
In view of the above risks, combined with the industry situation in the second half of the year and the shortage in
the first half of the year, in the second half of 2021, the company will seize the opportunity, turn the crisis into an
opportunity, and implement the business plan from the following aspects (ii).
(2)Operation plan for second half of the year
Under strategic planning, the company will continue to take "one side two points" as the guiding ideology, output
the online and offline competition strategy and product strategy matching with the market, implement the
management policy of "market driven, product leadership, efficiency breakthrough, team activation", and
implement business plan from the following aspects.
1. Refrigerator and freezer industry
In the domestic market, adhere to the "three main line" to promote the work. Take the customer as the center,
provide unique value products to consumers, strengthen the good quality and hot sale products, and enhance
product competitiveness through new products upgrades, and the appearance, performance experience and quality
of M Fresh second generation, fresh, all clean, mother and infant series products, especially the launch of
“uniform temperature partial freezing” new product in July will effectively enhance the competitiveness of the
company's products. We will continue to promote marketing transformation, on the basis of whole-channel
coordination, offline channels are focused on transformation and realizing ten thousand yuan breakthroughs of M
Fresh products, focus on the scale of single product with high gross margin, and centre on the quantity of medium-
end products; while online channels focus on upgrading structure, and strengthening attack to increase gross
margin. Promote the "benchmarking" around the whole value chain, focus on the market, supply chain,
manufacturing, foaming process, logistics and other aspects to narrow the gap with the benchmark, and improve
the overall operational efficiency.
In the overseas market, continue to focus on products, focus on markets, and focus on customers. Continue to
optimize product structure, strengthen the adaptability of product research and development to different regions;
sort out the strategies to core markets and core customers, and strengthen the ability to respond to different
markets; actively find and open fast transport channels, increase brand teams and product investment, and
continuously promote overseas independent brand building.
2. Air-conditioning industry
In the domestic market, focus on "strengthening ability, consolidating foundation, increasing benefits", reach scale
to improve structure, improve profit or loss; expand channels and promote special projects, consolidate
foundation; promote new products to activate terminal, improve capacity; standardize operation management,
reduce costs and improve efficiency. In terms of overseas markets, adhere to the brand priority, stick to the online
incline and customer focus, take efficiency improvement as the starting point, reduce costs, stabilize quality, and
improve service capacity.
29
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
3. Washing machine industry
In the second half of the year, washing machine industry will adhere to the "good quality" + "hot sale" product
strategy, and build the "thin", "large", "simple" industry business card. For good quality products, enrich the
product lines mainly through the layout in clothes dryer products and the launch of new high-box pulsator unit,
and improve product competitiveness from the appearance, cost performance, experience, and quality. For hot sale
products, lay out e-commerce 2C products and product integration scan code payment product requirements by
reducing costs, and expand the scale of washing machines. At the same time, relying on the self-produced washing
machine to lay out overseas business, expand ODM/OEM customers, and achieve rapid breakthroughs in Meiling
washing machine scale.
4. Kitchen, bathroom and small household appliances industry
Focus on building water ecological appliances and brand with influential operation services, and expand the
industry influence. Be result-oriented, consolidate the foundation, take the initiative to meet the change, lead the
product to win with innovative thinking. Build the core product line, promote omni-channel marketing work,
strengthen self-management ability, and achieve scale breakthrough by stabilizing transformation results,
dislocating competition, playing the brand effect, etc.
5. Bio-pharmaceutical
We will unswervingly implement the development strategy of "related diversification based on bio-medical field",
and continue to promote product innovation, research and development, quality improvement, deeply develop
channels of domestic life science market, and improve services by centering on the three business strategies of life
science, smart cold chain and family health. For overseas market, focus on blank market development, and
promote scale growth. Relying on the life science channel system, the company has steadily promoted the
extension of smart cold chain business to professional logistics, medicine, chemical industry and other fields. At
the same time, it has promoted the launch of new products such as atomizer, a family health product, to promote
the company's scale growth.
30
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
Section IV. Corporate Governance
I. AGM(Annual General Meeting) and extraordinary general meeting
1. AGM held in the period
Participation ratio Disclosure
Meeting Type Holding date Resolution
for investors date
Deliberated and approved the 21 proposes including
Annual general “Report on the Work of BOD for year of 2020”, found
2020 AGM 31.5421% 2021-4-28 2021-4-29
meeting more in the (Notice No.: 2021-034) released on Juchao
Website www.cninfo.com.cn
Deliberated and approved the “proposal on termination
First Extraordinary
Extraordinary of the assets purchase and related transactions”, found
General Meeting of 4.7757% 2021-6-16 2021-6-17
General Meeting more in the (Notice No.: 2021-046) released on Juchao
2021
Website www.cninfo.com.cn
Deliberated and approved the 2 proposes including
Second Extraordinary “proposal to purchase the liability insurance for directors,
Extraordinary
General Meeting of 31.3097% 2021-7-28 2021-7-29 supervisors and senior executives”, found more in the
General Meeting
2021 (Notice No.: 2021-058) released on Juchao Website
www.cninfo.com.cn
(2) Request for extraordinary general meeting by preferred stockholders with rights to vote
□ Applicable √ Not applicable
II. Changes of directors, supervisors and senior executives
√ Applicable □ Not applicable
Name Title Type Date Reasons
th th
Approved by 6 session of 10 BOD, Mr. Tang Youdao was appointed
Tang Youdao Deputy president Appointment 2021-3-29 as the deputy president of the Company, with service term same as the
10th BOD
After democratic election by 6th session of the
Sun Hongying Staff supervisor Be elected 2021-3-30 8th employee representative meeting, Ms. Sun Hongying was elected as
the employee supervisor of the 10th board of supervisors.
Staff supervisor, Mr. Zhu Wenjie applied for resignation as the staff supervisor of 10th
Zhu Wenjie securities Outgoing 2021-3-30 board of supervisors and securities representative of the Company for
representative personal reasons.
III. Profit distribution plan and capitalizing of common reserves in the period
□ Applicable √ Not applicable
There are no cash dividend, bonus and capitalizing of common reserves carried out in the semi-annual
IV. Implementation of the company’s stock incentive plan, employee stock ownership plan or other
31
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
employee incentives
□ Applicable √ Not applicable
The Company has no implementation of the company’s stock incentive plan, employee stock ownership plan or
other employee incentives in the period.
32
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
Section V. Environmental and Social Responsibility
I. Material environmental protection
The listed Company and its subsidiary whether belong to the key sewage units released from environmental protection department:
√ Yes □ No
Dischar
number ge
Name of Major pollutants Way of Total
of concentration Pollutants discharge standards Total discharge volume beyond
company or and name of typical discharg Distribution of discharge outlets discharge
discharg of discharge enacted certified the
subsidiary pollutants e volume
e outlets standard
s
"Sichuan Province Fixed Sichuan Changhong Air-
Two outlets at J05 workshop and Pollution Source Air Volatile conditioner Co., Ltd. has
Organiz
one outlet at J07 workshop, No Organic Compound Emission completed the pollutant Not
VOC (volatile ed
3 128, Sanjiang Road, Economic ≤12.3mg/m3 Standard DB51/2377-2017" 2343.65kg discharge registration on exceede
organic compounds) emissio
Development Zone, Mianyang Table 3 standard requirements, the national pollutant d
Sichuan ns
City that is, volatile organic discharge permit
Changhong
compounds <60mg/m3. management information
Air-
"Comprehensive Emission platform and obtained
conditioner
Two outlets at J05 workshop (it Standard of Air Pollutants the registration receipt in
Co., Ltd. Organiz
belongs to the same output as GB16297-1996" Table 2 accordance with the Not
ed
Nitrogen oxides 2 J05VOC), No 128, Sanjiang ＜3mg/m3 secondary standard 268.05kg "Pollution Permit exceede
emissio
Road, Economic Development requirements, that is, the Management Measures d
ns
Zone, Mianyang City concentration of nitrogen oxides (Trial)", the "Fixed
<240 mg/m3 Pollution Source
33
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
Two outlets at J05 workshop (it "Comprehensive Emission Pollution Permit
Organiz
belongs to the same output as Standard of Air Pollutants Classification Not
ed
Sulfur dioxide 2 J05VOC), No 128, Sanjiang ＜3mg/m3 GB16297-1996" Table 2 268.05kg Management Directory exceede
emissio
Road, Economic Development requirements, that is, the (2019 Edition)", etc., d
ns
Zone, Mianyang City SO2<120 mg/m3 there is no requirement
for the company's total
"Comprehensive Emission
Standard of Air Pollutants emissions in the
Two outlets at J05 workshop and
Organiz pollution discharge
one outlet at J07 workshop, No GB16297-1996" Table 2 Not
ed registration
Particulate matter 4 128, Sanjiang Road, Economic ≤1.7mg/m3 secondary standard 461.25kg exceede
emissio
Development Zone, Mianyang requirements, that is, the d
ns
City concentration of particulate
matter <120 mg/m3
Note : In 2021, Bureau of Ecology and Environment of Mianyang issued the "Notice on the List of Key Pollutant Discharge Units in 2021", and included Sichuan Changhong Air-conditioner
Co., Ltd. in the list of key soil pollution supervision.
34
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
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
35
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
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.Administrative penalties imposed for environmental issues during the reporting period
The Company and its subsidiaries strictly comply with the relevant national and regional environmental protection
laws and regulations, relying on the ISO14001 system to establish and improve the internal environmental
management system, timely update the adaptive laws and regulations and related industry requirements, and take
the initiative to fulfill corporate social responsibility, laying a solid foundation for the company's compliance
operations. During the reporting period, the Company and its subsidiaries did not receive any administrative
punishment due to environmental problems.
6. Other environment information that should be disclosed
According to the Measures for Environmental Information Disclosure of Enterprises and Public Institutions, the
Company and its subsidiaries have achieved public work for information on environmental impact assessment on
construction projects, project acceptance inspection, production pollution discharge, solid waste management,
important environmental factors and their environmental objectives and performances.
7. 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.
36
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
II. Social responsibility
During the reporting period, the Company did not carry out poverty alleviation and rural revitalization work for
the time being.
37
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
Section VI. Important Events
I. 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
The Company has no 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
II. 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.
III. Guarantee outside against the regulation
□Applicable √Not applicable
No guarantee outside against the regulation in Period.
IV. Appointment and non-reappointment (dismissal) of CPA
Whether the semi-annual financial report had been audited
□Yes √ No
The semi-annual report was not audited
V. Explanation on “Qualified Opinion” from CPA by the Board and Supervisory Committee
□ Applicable √ Not applicable
VI. Explanation from the Board for “Qualified Opinion” of last year’s
□ Applicable √ Not applicable
VII. Bankruptcy reorganization
□ Applicable √ Not applicable
No bankruptcy reorganization for the Company in reporting period
VIII. Lawsuit
(1) Significant lawsuits and arbitration
□ Applicable √ Not applicable
38
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
No significant lawsuits or arbitration occurred in the reporting period.
(2) Other lawsuits
√Applicable □ Not applicable
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.
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.
IX. Penalty and rectification
√Applicable □Not applicable
Investigation Disclosure
Name Type Causes Conclusions (if any) Disclosure index
penalty type date
The YC-395EL (1) type equipment Zhongke Meiling
produced on 24 Oct. 2019 and sold on 13 was ordered to
Zhongke
Nov. 2019 by Zhongke Meiling did not immediately correct Found more on
Meiling Investigated by
file changes with the original registration the violations and (Notice No.: 2021-
Cryogenic Other competent 2021-7-16
department; the YC-395EL (2) type was given a 056) released on
Technology authorities
equipment did not apply for registration forfeiture of Juchao Website
Co., Ltd.
changes with the original registration 456,500 yuan in
department total
Correction description:
√Applicable □Not applicable
After receiving the on-site inspection by Anhui Drug Administration, Zhongke Meiling has fully recognized the
problem that it did not timely record and register changes in accordance with the relevant provisions of the
Regulations on Supervision and Administration of Medical Devices, and rectified the corresponding problems in
the first time. Zhongke Meiling recalled the involved products in time in accordance with the "Management
Measures for Recall of Medical Devices", and immediately sealed samples of the recalled products and sent them
to an authoritative third party for performance and safety tests. After inspection, the products met the
requirements. Up to now, Zhongke Meiling has completed the registration change of the above products.
At the same time, the company and the subsidiaries will profoundly summarize the lessons of this administrative
punishment, strictly abide by relevant laws and regulations, and further enhance the standardization operation
level, so as to eliminate such incidents again.
X. Integrity of the company and its controlling shareholders and actual controllers
39
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
√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 failure to fulfill the obligations determined by effective legal documents of the
court, nor large amount of debt outstanding at maturity etc.
XI. Major related party transaction
(1) Related party transaction with routine operation concerned
√Applicable □ Not applicable
40
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
1. Related party transaction with routine operation concerned
Propo Whethe
Availa
Related Related rtion Trading r over
Clearing ble
Type of transactio transaction in limit the
Content of form for simila
Related Relationshi related Pricing n price amount (in simila approve approve Date of
Serial related related r Index of disclosure
party p transact principle (in 10 10 r d (in 10 d disclosure
transaction transactio mark
ion thousand thousand transa thousan limited
n et
Yuan) Yuan) ctions d Yuan) or not
price
(%) (Y/N)
R-three-terminal
voltage regulator,
integrated Spot Juchao Website
Sichuan Controlling Commo
circuits, R- exchange, (www.cninfo.com.c
Changhong shareholder dity Marketing 12 Dec. 2020;
1 insulated gate 31,287.06 31,287.06 3.74% 60,000 N Bank - n) No.: 2020-097,
Electric Co., and ultimate purchas price 30 Dec. 2020
bipolar acceptanc 2020-099, 2020-107
Ltd. controller ed
transistors, steel e
plates, plastic
parts etc.
Other
enterprise
control
Changhong Commo Juchao Website
under the Bank
Huayi dity Compressor, Marketing 12 Dec. 2020; (www.cninfo.com.c
2 same 25,353.49 25,353.49 3.03% 63,000 N acceptanc -
Compressor purchas Door seal price 30 Dec. 2020 n) No.: 2020-097,
controlling e
Co., Ltd. ed 2020-099, 2020-107
shareholder
and ultimate
controller
41
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
Door liners,
Other drawers,
enterprise refrigerator
Sichuan control components, Spot
Commo Juchao Website
Changhong under the hinge covers, exchange,
dity Marketing 12 Dec. 2020; (www.cninfo.com.c
3 Mold Plastic same door trim, electric 47,151.73 47, 151.73 5.64% 120,000 N Bank -
purchas price 30 Dec. 2020 n) No.: 2020-097,
Tech. Co., controlling control box acceptanc
ed 2020-099, 2020-107
Ltd. shareholder covers, chassis, e
and ultimate swing leaf plastic
controller parts, travel cases,
spray mops, etc.
Other Base plate
enterprise assembly, door
control trim, support Spot
Sichuan Commo Juchao Website
under the plate, door exchange,
Changhong dity Marketing 12 Dec. 2020; (www.cninfo.com.c
4 same assembly support, 24,414.33 24,414.33 2.92% 60,000 N Bank -
Jijia Fine purchas price 30 Dec. 2020 n) No.: 2020-097,
controlling pressure plate, acceptanc
Co., Ltd. ed 2020-099, 2020-107
shareholder bracket, sheet e
and ultimate metal parts, etc.
controller
Other
enterprise
Sichuan control Packing boxes,
Commo Juchao Website
Changhong under the foam, Bank
dity Marketing 12 Dec. 2020; (www.cninfo.com.c
5 Package same dimensional spare 6,913.07 6,913.07 0.83% 18,000 N acceptanc -
purchas price 30 Dec. 2020 n) No.: 2020-097,
Printing controlling parts, labels, bags e
ed 2020-099, 2020-107
Co., Ltd. shareholder and cartons.
and ultimate
controller
42
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
Other
enterprise
Sichuan
control
Changhong Commo Printed board Juchao Website
under the Bank
Precision dity machine insertion Marketing 12 Dec. 2020; (www.cninfo.com.c
6 same 1,291.84 1,291.84 0.15% 5,000 N acceptanc -
Electronics purchas machine paste price 30 Dec. 2020 n) No.: 2020-097,
controlling e
Tech. Co., ed assembly 2020-099, 2020-107
shareholder
Ltd.
and ultimate
controller
Other
enterprise
control
081 Commo Juchao Website
under the Bank
Electronic dity Power Marketing 12 Dec. 2020; (www.cninfo.com.c
7 same 4.95 4.95 0.00% 13,000 N acceptanc -
Group Co., purchas transformers price 30 Dec. 2020 n) No.: 2020-097,
controlling e
Ltd. ed 2020-099, 2020-107
shareholder
and ultimate
controller
Other
enterprise
control Spot
Guangdong Commo Juchao Website
under the exchange,
Changhong dity Marketing 12 Dec. 2020; (www.cninfo.com.c
8 same Foam and carton 254.71 254.71 0.03% 13,000 N Bank -
Electronics purchas price 30 Dec. 2020 n) No.: 2020-097,
controlling acceptanc
Co., Ltd. ed 2020-099, 2020-107
shareholder e
and ultimate
controller
Sichuan Other Commo Juchao Website
Marketing Cash 12 Dec. 2020;
9 Changhong enterprise dity Circuit boards 1.77 1.77 0.00% 7,000 N - (www.cninfo.com.c
price settlement 30 Dec. 2020
Intelligent control purchas n) No.: 2020-097,
43
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
Manufacturi under the ed 2020-099, 2020-107
ng same
Technology controlling
Co., Ltd. shareholder
and ultimate
controller
Other
enterprise
Control board,
control
Hefei Commo inverter Juchao Website
under the Bank
Changhong dity integrated board, Marketing 12 Dec. 2020; (www.cninfo.com.c
10 same 293.88 293.88 0.04% 13,000 N acceptanc -
Industrial purchas power cord, price 30 Dec. 2020 n) No.: 2020-097,
controlling e
Co., Ltd. ed temperature and 2020-099, 2020-107
shareholder
humidity sensor
and ultimate
controller
Other
enterprise
Sichuan control
Commo Juchao Website
Changhong under the
dity Marketing Cash 12 Dec. 2020; (www.cninfo.com.c
11 New Energy same Coin cell batteries 0.96 0.96 0.00% 8,000 N -
purchas price settlement 30 Dec. 2020 n) No.: 2020-097,
Technology controlling
ed 2020-099, 2020-107
Co., Ltd. shareholder
and ultimate
controller
Other
Sichuan
enterprise Commo Juchao Website
Zhiyijia
control dity Displays, AC and Marketing Cash 12 Dec. 2020; (www.cninfo.com.c
12 Network 625.8 625.8 0.07% 13,000 N -
under the purchas freezers price settlement 30 Dec. 2020 n) No.: 2020-097,
Technology
same ed 2020-099, 2020-107
Co., Ltd.
controlling
44
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
shareholder
and ultimate
controller
Other
enterprise
Changhong
control
Internationa Commo Juchao Website
under the
l Holdings dity Marketing Cash 12 Dec. 2020; (www.cninfo.com.c
13 same Television 672.2 672.2 0.08% 10,000 N -
(Hong purchas price settlement 30 Dec. 2020 n) No.: 2020-097,
controlling
Kong) Co., ed 2020-099, 2020-107
shareholder
Ltd.
and ultimate
controller
Other
enterprise
Sichuan control Spot
Commo Juchao Website
Changhong under the Speech exchange,
dity Marketing 12 Dec. 2020; (www.cninfo.com.c
14 Electronic same components for 1,797.64 1,797.64 0.21% 6,000 N Bank -
purchas price 30 Dec. 2020 n) No.: 2020-097,
Products controlling R&D acceptanc
ed 2020-099, 2020-107
Co., Ltd. shareholder e
and ultimate
controller
Other
enterprise
Sichuan control
Commo WiFi module, Juchao Website
Ailian under the Bank
dity temperature and Marketing 12 Dec. 2020; (www.cninfo.com.c
15 Science & same 1,934.07 1,934.07 0.23% 6,000 N acceptanc -
purchas humidity sensor price 30 Dec. 2020 n) No.: 2020-097,
Technology controlling e
ed 2020-099, 2020-107
Co., Ltd. shareholder
and ultimate
controller
45
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
Other
enterprise Inverter
Sichuan control integrated board,
Commo Juchao Website
Aichuang under the control board, Bank
dity Marketing 12 Dec. 2020; (www.cninfo.com.c
16 Science & same display board, 5,848.84 5,848.84 0.70% 15,000 N acceptanc -
purchas price 30 Dec. 2020 n) No.: 2020-097,
Technology controlling wifi module and e
ed 2020-099, 2020-107
Co., Ltd. shareholder R-IC LNK6664V
and ultimate
controller
Other
enterprise
Hunan control Spot
Commo Juchao Website
Grand-Pro under the exchange,
dity Floor mopping Marketing 12 Dec. 2020; (www.cninfo.com.c
17 Intelligent same 75.66 75.66 0.01% 1,500 N Bank -
purchas robot price 30 Dec. 2020 n) No.: 2020-097,
Tech. controlling acceptanc
ed 2020-099, 2020-107
Company shareholder e
and ultimate
controller
Other
enterprise
Zhongshan control Spot
Commo Juchao Website
Guanghong under the Plastic pressed exchange,
dity Marketing 12 Dec. 2020; (www.cninfo.com.c
18 Moulding same parts and spray 77.26 77.26 0.01% 13,000 N Bank -
purchas price 30 Dec. 2020 n) No.: 2020-097,
Technology controlling mop acceptanc
ed 2020-099, 2020-107
Co., Ltd. shareholder e
and ultimate
controller
Sichuan Controlling Accept Juchao Website
Shuttle Marketing Cash 12 Dec. 2020;
19 Changhong shareholder labor 41 41 0.06% 8,000 N - (www.cninfo.com.c
transportation fee price settlement 30 Dec. 2020
Electronics and ultimate service n) No.: 2020-097,
46
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
Holding controller 2020-099, 2020-107
Group Co.,
Ltd.
Training fees,
Sichuan Controlling software usage Juchao Website
Accept
Changhong shareholder fees, inspection Marketing Cash 12 Dec. 2020; (www.cninfo.com.c
20 labor 184.87 184.87 0.25% 5,600 N -
Electric Co., and ultimate and certification price settlement 30 Dec. 2020 n) No.: 2020-097,
service
Ltd. controller fees and technical 2020-099, 2020-107
service fees
Other
enterprise
Sichuan control
Storage, Juchao Website
Changhong under the Accept
transportation and Marketing 30.84 Cash 12 Dec. 2020; (www.cninfo.com.c
21 Minsheng same labor 22,455.74 22,455.74 52,000 N -
loading & price % settlement 30 Dec. 2020 n) No.: 2020-097,
Logistics controlling service
unloading 2020-099, 2020-107
Co., Ltd. shareholder
and ultimate
controller
Other
enterprise
Sichuan control
Juchao Website
Changhong under the Accept
Marketing Cash 12 Dec. 2020; (www.cninfo.com.c
22 Mold Plastic same labor Mold changes 6.67 6.67 0.01% 5,600 N -
price settlement 30 Dec. 2020 n) No.: 2020-097,
Tech. Co., controlling service
2020-099, 2020-107
Ltd. shareholder
and ultimate
controller
Sichuan Other Accept Three packages, Juchao Website
Marketing 12.84 Cash 12 Dec. 2020;
23 Service enterprise labor equipment repair, 9,349.91 9,349.91 35,000 N - (www.cninfo.com.c
price % settlement 30 Dec. 2020
Exp. control service marketing n) No.: 2020-097,
47
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
Appliance under the support, air 2020-099, 2020-107
Service same conditioning
Chain Co., controlling installation, after-
Ltd. shareholder sales service,
and ultimate finished goods
controller transportation and
miscellaneous
fees
Other
enterprise
control Software usage
Sichuan Juchao Website
under the Accept fee and
Hongxin Marketing Cash 12 Dec. 2020; (www.cninfo.com.c
24 same labor information 62.78 62.78 0.09% 5,600 N -
Software price settlement 30 Dec. 2020 n) No.: 2020-097,
controlling service service fee
Co., Ltd. 2020-099, 2020-107
shareholder
and ultimate
controller
Service support
Other
fee, network
enterprise
service fee,
control
Guangdong advertising fee, Juchao Website
under the Accept
Changhong software usage Marketing Cash 12 Dec. 2020; (www.cninfo.com.c
25 same labor 38.13 38.13 0.05% 5,600 N -
Electronics fee, security and price settlement 30 Dec. 2020 n) No.: 2020-097,
controlling service
Co., Ltd. fire protection fee 2020-099, 2020-107
shareholder
and labor
and ultimate
insurance fee
controller
Sichuan Other Accept Working meals Juchao Website
Marketing Cash 12 Dec. 2020;
26 Jiahong enterprise labor fee and greening 221.91 221.91 0.30% 8,000 N - (www.cninfo.com.c
price settlement 30 Dec. 2020
Industrial control service fees n) No.: 2020-097,
48
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
Co., Ltd. under the 2020-099, 2020-107
same
controlling
shareholder
and ultimate
controller
Other
enterprise
Sichuan control Travel, meetings
Juchao Website
Changhong under the Accept fee, working
Marketing Cash 12 Dec. 2020; (www.cninfo.com.c
27 Internationa same labor meals and 1.48 1.48 0.00% 8,000 N -
price settlement 30 Dec. 2020 n) No.: 2020-097,
l Hotel Co., controlling service accommodation
2020-099, 2020-107
Ltd. shareholder
and ultimate
controller
Other
enterprise
Sichuan
control
Changhong Juchao Website
under the Accept
Internationa Marketing Cash 12 Dec. 2020; (www.cninfo.com.c
28 same labor Travel expenses 23.18 23.18 0.03% 8,000 N -
l Travel price settlement 30 Dec. 2020 n) No.: 2020-097,
controlling service
Service Co., 2020-099, 2020-107
shareholder
Ltd.
and ultimate
controller
Other Dormitory facility
Sichuan
enterprise and equipment Juchao Website
Changhong Accept
control service fees, Marketing Cash 12 Dec. 2020; (www.cninfo.com.c
29 Property labor 125.68 125.68 0.17% 8,000 N -
under the property price settlement 30 Dec. 2020 n) No.: 2020-097,
Services service
same management fees 2020-099, 2020-107
Co., Ltd.
controlling
49
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
shareholder
and ultimate
controller
Other
enterprise
control Inspection &
Sichuan Juchao Website
under the Accept certification fees,
Hongwei Marketing Cash 12 Dec. 2020; (www.cninfo.com.c
30 same labor technical 163 163 0.22% 5,600 N -
Technology price settlement 30 Dec. 2020 n) No.: 2020-097,
controlling service cooperation fees
Co., Ltd. 2020-099, 2020-107
shareholder
and ultimate
controller
Other
enterprise
Marketing
Sichuan control
support fees, Juchao Website
Zhiyijia under the Accept
advertising fees Marketing Cash 12 Dec. 2020; (www.cninfo.com.c
31 Network same labor 3.69 3.69 0.01% 5,600 N -
and operating price settlement 30 Dec. 2020 n) No.: 2020-097,
Technology controlling service
expenses 2020-099, 2020-107
Co., Ltd. shareholder
and ultimate
controller
Other
Sichuan enterprise
Changhong control
Information Juchao Website
Intelligent under the Accept
consulting fees Marketing Cash 12 Dec. 2020; (www.cninfo.com.c
32 Manufacturi same labor 63.75 63.75 0.09% 7,000 N -
and equipment price settlement 30 Dec. 2020 n) No.: 2020-097,
ng controlling service
repair fees 2020-099, 2020-107
Technology shareholder
Co., Ltd. and ultimate
controller
50
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
Other
enterprise
Sichuan control
Juchao Website
Changhong under the Accept
Labor dispatch Marketing Cash 12 Dec. 2020; (www.cninfo.com.c
33 Electronic same labor 12.46 12.46 0.02% 5,600 N -
fee price settlement 30 Dec. 2020 n) No.: 2020-097,
Products controlling service
2020-099, 2020-107
Co., Ltd. shareholder
and ultimate
controller
Other
enterprise
Sichuan control
Juchao Website
Aichuang under the Accept
Marketing Cash 12 Dec. 2020; (www.cninfo.com.c
34 Science & same labor R&D test fees 1.32 1.32 0.00% 15,000 N -
price settlement 30 Dec. 2020 n) No.: 2020-097,
Technology controlling service
2020-099, 2020-107
Co., Ltd. shareholder
and ultimate
controller
Other
enterprise
Changhong
control
Internationa Juchao Website
under the Accept
l Holdings Marketing Marketing Cash 12 Dec. 2020; (www.cninfo.com.c
35 same labor 243.34 243.34 0.33% 5,600 N -
(Hong supports fees price settlement 30 Dec. 2020 n) No.: 2020-097,
controlling service
Kong) Co., 2020-099, 2020-107
shareholder
Ltd.
and ultimate
controller
Sichuan Controlling Purchas Juchao Website
Electricity, steam, Marketing Cash 12 Dec. 2020;
36 Changhong shareholder e of fuel 1,048.48 1,048.48 0.13% 60,000 N - (www.cninfo.com.c
water and energy price settlement 30 Dec. 2020
Electric Co., and ultimate power n) No.: 2020-097,
51
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
Ltd. controller 2020-099, 2020-107
Other
enterprise
control
Changhong Juchao Website
under the Purchas
Huayi Marketing Cash 12 Dec. 2020; (www.cninfo.com.c
37 same e of fuel Steam fees 20.22 20.22 0.00% 150 N -
Compressor price settlement 30 Dec. 2020 n) No.: 2020-097,
controlling power
Co., Ltd. 2020-099, 2020-107
shareholder
and ultimate
controller
Other
enterprise
control
Guangdong Juchao Website
under the Purchas
Changhong Marketing Cash 12 Dec. 2020; (www.cninfo.com.c
38 same e of fuel Energy fees 52.01 52.01 0.01% 13,000 N -
Electronics price settlement 30 Dec. 2020 n) No.: 2020-097,
controlling power
Co., Ltd. 2020-099, 2020-107
shareholder
and ultimate
controller
Other
enterprise
Hefei control
Juchao Website
Changhong under the Purchas
Marketing Cash 12 Dec. 2020; (www.cninfo.com.c
39 New Energy same e of fuel Electricity fees 17.22 17.22 0.00% 13,000 N -
price settlement 30 Dec. 2020 n) No.: 2020-097,
Technology controlling power
2020-099, 2020-107
Co., Ltd. shareholder
and ultimate
controller
52
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
Other
enterprise
Sichuan control
Juchao Website
Changhong under the Purchas
Marketing Cash 12 Dec. 2020; (www.cninfo.com.c
40 Property same e of fuel Electricity fees 1.26 1.26 0.00% 8,000 N -
price settlement 30 Dec. 2020 n) No.: 2020-097,
Services controlling power
2020-099, 2020-107
Co., Ltd. shareholder
and ultimate
controller
Air conditioners,
Spot
Sichuan Controlling waste materials, Juchao Website
exchange,
Changhong shareholder Sales of refrigerators, Marketing 12 Dec. 2020; (www.cninfo.com.c
41 318.89 318.89 0.04% 8,000 N Bank -
Electric Co., and ultimate goods small appliances price 30 Dec. 2020 n) No.: 2020-097,
acceptanc
Ltd. controller and suitcases 2020-099, 2020-107
e
Other Lower beams,
enterprise brackets, base
control plates, color
Sichuan Juchao Website
under the plates, materials
Changhong Sales of Marketing Cash 12 Dec. 2020; (www.cninfo.com.c
42 same processed on 3,677.37 3,677.37 0.41% 8,000 N -
Jijia Fine goods price settlement 30 Dec. 2020 n) No.: 2020-097,
controlling behalf of steel
Co., Ltd. 2020-099, 2020-107
shareholder plates, water
and ultimate purifiers, etc.
controller
Other Particles, fixed
Sichuan
enterprise support seat, Juchao Website
Changhong
control Sales of connecting tube, Marketing Cash 12 Dec. 2020; (www.cninfo.com.c
43 Mold Plastic 13,068.52 13,068.52 1.44% 32,000 N -
under the goods nut, GPPS plastic, price settlement 30 Dec. 2020 n) No.: 2020-097,
Tech. Co.,
same high gloss raw 2020-099, 2020-107
Ltd.
controlling material
53
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
shareholder
and ultimate
controller
Other
enterprise
control Air conditioner,
Lejiayi Juchao Website
under the Refrigerator,
Chain Sales of Marketing Cash 12 Dec. 2020; (www.cninfo.com.c
44 same freezer, small 18.04 18.04 0.00% 15,000 N -
Managemen goods price settlement 30 Dec. 2020 n) No.: 2020-097,
controlling appliances, etc.
t Co., Ltd. 2020-099, 2020-107
shareholder
and ultimate
controller
Other
Washing
enterprise
machine, air
Sichuan control Spot
conditioner, Juchao Website
Zhiyijia under the exchange,
Sales of Refrigerator, Marketing 328,665.8 36.21 12 Dec. 2020; (www.cninfo.com.c
45 Network same 328,665.84 700,000 N Bank -
goods freezer, water price 4 % 30 Dec. 2020 n) No.: 2020-097,
Technology controlling acceptanc
heater, gas stove, 2020-099, 2020-107
Co., Ltd. shareholder e
etc.
and ultimate
controller
Other
enterprise
Sichuan control
Juchao Website
Changhong under the
Sales of Marketing Cash 12 Dec. 2020; (www.cninfo.com.c
46 Device same Small appliances 0.08 0.08 0.00% 15,000 N -
goods price settlement 30 Dec. 2020 n) No.: 2020-097,
Technology controlling
2020-099, 2020-107
Co., Ltd. shareholder
and ultimate
controller
54
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
Other
enterprise
Sichuan control Air conditioner,
Juchao Website
Changhong under the Refrigerator,
Sales of Marketing Cash 12 Dec. 2020; (www.cninfo.com.c
47 Minsheng same freezer, carton, 9.73 9.73 0.00% 15,000 N -
goods price settlement 30 Dec. 2020 n) No.: 2020-097,
Logistics controlling liner, etc.
2020-099, 2020-107
Co., Ltd. shareholder
and ultimate
controller
Refrigeration
drawer
Other
components,
Sichuan enterprise
seals, temperature
Service control
sensors, control Juchao Website
Exp. under the
Sales of boards, Marketing Cash 12 Dec. 2020; (www.cninfo.com.c
48 Appliance same 293.76 293.76 0.03% 15,000 N -
goods temperature price settlement 30 Dec. 2020 n) No.: 2020-097,
Service controlling
controllers, air 2020-099, 2020-107
Chain Co., shareholder
conditioners,
Ltd. and ultimate
maintenance
controller
spare parts, etc.
Other
enterprise
control
Hefei Juchao Website
under the Single chip
Changhong Sales of Marketing Cash 12 Dec. 2020; (www.cninfo.com.c
49 same microcomputer 7.89 7.89 0.00% 15,000 N -
Industrial goods price settlement 30 Dec. 2020 n) No.: 2020-097,
controlling etc.
Co., Ltd. 2020-099, 2020-107
shareholder
and ultimate
controller
55
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
Other
enterprise
control
Sichuan Juchao Website
under the
Changhong Sales of Marketing Cash 12 Dec. 2020; (www.cninfo.com.c
50 same Small appliances 1.96 1.96 0.00% 15,000 N -
Real Estate goods price settlement 30 Dec. 2020 n) No.: 2020-097,
controlling
Co., Ltd. 2020-099, 2020-107
shareholder
and ultimate
controller
Other
enterprise
control
Guangdong Juchao Website
under the Air conditioner,
Changhong Sales of Marketing Cash 12 Dec. 2020; (www.cninfo.com.c
51 same small appliances 10.62 10.62 0.00% 15,000 N -
Electronics goods price settlement 30 Dec. 2020 n) No.: 2020-097,
controlling etc.
Co., Ltd. 2020-099, 2020-107
shareholder
and ultimate
controller
Other
enterprise
control
081 Juchao Website
under the
Electronic Sales of Marketing Cash 12 Dec. 2020; (www.cninfo.com.c
52 same Air conditioner 0.08 0.08 0.00% 15,000 N -
Group Co., goods price settlement 30 Dec. 2020 n) No.: 2020-097,
controlling
Ltd. 2020-099, 2020-107
shareholder
and ultimate
controller
Guangyuan Other Juchao Website
Sales of Marketing Cash 12 Dec. 2020;
53 Changhong enterprise Air conditioner 8.07 8.07 0.00% 15,000 N - (www.cninfo.com.c
goods price settlement 30 Dec. 2020
Electronic control n) No.: 2020-097,
56
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
Technology under the 2020-099, 2020-107
Co., Ltd. same
controlling
shareholder
and ultimate
controller
Other
enterprise
control
PT.CHANG Juchao Website
under the
HONGELE Sales of Marketing Cash 12 Dec. 2020; (www.cninfo.com.c
54 same Air conditioner 27.8 27.8 0.00% 15,000 N -
CTRICIND goods price settlement 30 Dec. 2020 n) No.: 2020-097,
controlling
ONESIA 2020-099, 2020-107
shareholder
and ultimate
controller
Other
enterprise
control
CHANGHO Juchao Website
under the
NG(HK)TR Sales of Marketing Cash 12 Dec. 2020; (www.cninfo.com.c
55 same Air conditioner 13,687.72 13,687.72 1.51% 170,000 N -
ADINGLIM goods price settlement 30 Dec. 2020 n) No.: 2020-097,
controlling
ITED 2020-099, 2020-107
shareholder
and ultimate
controller
Other
CHANGHO
enterprise Juchao Website
NGELECT
control Sales of Refrigerator, Marketing Cash 12 Dec. 2020; (www.cninfo.com.c
56 RIC(AUST 5,310.94 5,310.94 0.59% 170,000 N -
under the goods freezer price settlement 30 Dec. 2020 n) No.: 2020-097,
RALIA)PT
same 2020-099, 2020-107
Y.LTD.
controlling
57
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
shareholder
and ultimate
controller
Other
enterprise
control
Juchao Website
under the
Orion.PDP. Sales of Marketing Cash 12 Dec. 2020; (www.cninfo.com.c
57 same Refrigerator 1,985.69 1,985.69 0.22% 4,500 N -
Co.,ltd goods price settlement 30 Dec. 2020 n) No.: 2020-097,
controlling
2020-099, 2020-107
shareholder
and ultimate
controller
Other
enterprise
control
Juchao Website
Changhong under the
Sales of Marketing Cash 12 Dec. 2020; (www.cninfo.com.c
58 Europe same Refrigerator 5,608.18 5,608.18 0.62% 8,000 N -
goods price settlement 30 Dec. 2020 n) No.: 2020-097,
Electric s.r.o controlling
2020-099, 2020-107
shareholder
and ultimate
controller
Other
enterprise
CHANGHO
control
NG Juchao Website
under the
ELECTRIC Sales of Marketing Cash 12 Dec. 2020; (www.cninfo.com.c
59 same Refrigerator 143.65 143.65 0.02% 15,000 N -
MIDDLE goods price settlement 30 Dec. 2020 n) No.: 2020-097,
controlling
EAST 2020-099, 2020-107
shareholder
FZCO
and ultimate
controller
58
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
Other
enterprise
Changhong
control
Internationa Juchao Website
under the Refrigerator,
l Holdings Sales of Marketing Cash 12 Dec. 2020; (www.cninfo.com.c
60 same freezer, air 10,567.63 10,567.63 1.16% 35,000 N -
(Hong goods price settlement 30 Dec. 2020 n) No.: 2020-097,
controlling conditioner
Kong) Co., 2020-099, 2020-107
shareholder
Ltd.
and ultimate
controller
Other
enterprise
Sichuan control Photocouplers,
Juchao Website
Aichuang under the refrigerants,
Sales of Marketing Cash 12 Dec. 2020; (www.cninfo.com.c
61 Science & same integrated 16.47 16.47 0.00% 3,100 N -
goods price settlement 30 Dec. 2020 n) No.: 2020-097,
Technology controlling circuits, etc.
2020-099, 2020-107
Co., Ltd. shareholder
and ultimate
controller
Other
enterprise
Mianyang control
Juchao Website
Leyijia under the
Sales of Marketing Cash 12 Dec. 2020; (www.cninfo.com.c
62 Tradeing same Small appliances 9.25 9.25 0.00% 15,000 N -
goods price settlement 30 Dec. 2020 n) No.: 2020-097,
Chain Co., controlling
2020-099, 2020-107
Ltd. shareholder
and ultimate
controller
Sichuan Controlling Providin Juchao Website
Marketing - Cash 12 Dec. 2020;
63 Changhong shareholder g Labor cost -1.08 -1.08 3,100 N - (www.cninfo.com.c
price 0.11% settlement 30 Dec. 2020
Electronics and ultimate services n) No.: 2020-097,
59
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
Holding controller 2020-099, 2020-107
Group Co.,
Ltd.
Other
enterprise
Sichuan control
Juchao Website
Changhong under the Providin
Marketing Cash 12 Dec. 2020; (www.cninfo.com.c
64 Mold Plastic same g Labor cost 8.78 8.78 0.93% 5,600 N -
price settlement 30 Dec. 2020 n) No.: 2020-097,
Tech. Co., controlling services
2020-099, 2020-107
Ltd. shareholder
and ultimate
controller
Other
enterprise
control
Sichuan Juchao Website
under the Providin
Changhong Marketing Cash 12 Dec. 2020; (www.cninfo.com.c
65 same g Labor cost 9.48 9.48 1.00% 5,600 N -
Jijia Fine price settlement 30 Dec. 2020 n) No.: 2020-097,
controlling services
Co., Ltd. 2020-099, 2020-107
shareholder
and ultimate
controller
Other
enterprise
Sichuan control
Juchao Website
Aichuang under the Providin
Technical service Marketing Cash 12 Dec. 2020; (www.cninfo.com.c
66 Science & same g 25.41 25.41 2.69% 3,100 N -
fee, labor cost price settlement 30 Dec. 2020 n) No.: 2020-097,
Technology controlling services
2020-099, 2020-107
Co., Ltd. shareholder
and ultimate
controller
60
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
Other
enterprise
Sichuan control
Juchao Website
Zhiyijia under the Providin
Marketing Cash 12 Dec. 2020; (www.cninfo.com.c
67 Network same g Service fee 1.26 1.26 0.13% 5,600 N -
price settlement 30 Dec. 2020 n) No.: 2020-097,
Technology controlling services
2020-099, 2020-107
Co., Ltd. shareholder
and ultimate
controller
Sichuan Controlling Juchao Website
Providin
Changhong shareholder Marketing - Cash 12 Dec. 2020; (www.cninfo.com.c
68 g Labor cost -9.06 -9.06 5,600 N -
Electric Co., and ultimate price 0.96% settlement 30 Dec. 2020 n) No.: 2020-097,
services
Ltd. controller 2020-099, 2020-107
Other
enterprise
Sichuan control
Juchao Website
Changhong under the Providin
Marketing - Cash 12 Dec. 2020; (www.cninfo.com.c
69 Network same g Labor cost -3.41 -3.41 5,600 N -
price 0.36% settlement 30 Dec. 2020 n) No.: 2020-097,
Technology controlling services
2020-099, 2020-107
Co., Ltd. shareholder
and ultimate
controller
Other
enterprise
Sichuan
control Juchao Website
Huafeng Providin System
under the Marketing Cash 12 Dec. 2020; (www.cninfo.com.c
70 Enterprise g development 1.32 1.32 0.14% 3,100 N -
same price settlement 30 Dec. 2020 n) No.: 2020-097,
Group Co., services service fee
controlling 2020-099, 2020-107
Ltd.
shareholder
and ultimate
61
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
controller
Other
enterprise
Sichuan control
Juchao Website
Changhong under the Providin
Forklift service、 Marketing Cash 12 Dec. 2020; (www.cninfo.com.c
71 Minsheng same g 19.00 19.00 2.01% 5,600 N -
Labor cost price settlement 30 Dec. 2020 n) No.: 2020-097,
Logistics controlling services
2020-099, 2020-107
Co., Ltd. shareholder
and ultimate
controller
Other
enterprise
control
081 Juchao Website
under the Providin
Electronic Marketing Cash 12 Dec. 2020; (www.cninfo.com.c
72 same g Maintenance fee 4.72 4.72 0.50% 5,600 N -
Group Co., price settlement 30 Dec. 2020 n) No.: 2020-097,
controlling services
Ltd. 2020-099, 2020-107
shareholder
and ultimate
controller
Other
enterprise
Sichuan control
Juchao Website
Changhong under the Providin
Marketing Cash 12 Dec. 2020; (www.cninfo.com.c
73 Electronic same g Labor cost 1.1 1.1 0.12% 5,600 N -
price settlement 30 Dec. 2020 n) No.: 2020-097,
Products controlling services
2020-099, 2020-107
Co., Ltd. shareholder
and ultimate
controller
62
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
Other
enterprise
control
Sichuan Juchao Website
under the Providin
Hongwei Marketing Cash 12 Dec. 2020; (www.cninfo.com.c
74 same g Service fee 0.14 0.14 0.01% 5,600 N -
Technology price settlement 30 Dec. 2020 n) No.: 2020-097,
controlling services
Co., Ltd. 2020-099, 2020-107
shareholder
and ultimate
controller
Other
enterprise
control
Guangdong Juchao Website
under the Providin
Changhong Marketing Cash 12 Dec. 2020; (www.cninfo.com.c
75 same g Labor cost 11.64 11.64 1.23% 5,600 N -
Electronics price settlement 30 Dec. 2020 n) No.: 2020-097,
controlling services
Co., Ltd. 2020-099, 2020-107
shareholder
and ultimate
controller
Other
enterprise
Sichuan
control
Changhong Juchao Website
under the Providin
Precision Marketing Cash 12 Dec. 2020; (www.cninfo.com.c
76 same g Labor cost 0.64 0.64 0.07% 5,600 N -
Electronics price settlement 30 Dec. 2020 n) No.: 2020-097,
controlling services
Tech. Co., 2020-099, 2020-107
shareholder
Ltd.
and ultimate
controller
Sichuan Other Providin Juchao Website
Marketing Cash 12 Dec. 2020;
77 Changhong enterprise g Labor cost 0.94 0.94 0.10% 3,100 N - (www.cninfo.com.c
price settlement 30 Dec. 2020
Gerun control services n) No.: 2020-097,
63
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
Environmen under the 2020-099, 2020-107
tal same
Protection controlling
Tech. Co., shareholder
Ltd. and ultimate
controller
Other
enterprise
control
Guangdong Juchao Website
under the Provide Water fee,
Changhong Marketing Cash 12 Dec. 2020; (www.cninfo.com.c
78 same fuel electricity fees 0.54 0.54 0.00% 15,000 N -
Electronics price settlement 30 Dec. 2020 n) No.: 2020-097,
controlling power and energy fees
Co., Ltd. 2020-099, 2020-107
shareholder
and ultimate
controller
Other
enterprise
Sichuan control
Juchao Website
Changhong under the Provide Water fee,
Marketing Cash 12 Dec. 2020; (www.cninfo.com.c
79 Minsheng same fuel electricity fees 2.8 2.8 0.00% 15,000 N -
price settlement 30 Dec. 2020 n) No.: 2020-097,
Logistics controlling power and energy fees
2020-099, 2020-107
Co., Ltd. shareholder
and ultimate
controller
Other
Sichuan enterprise Juchao Website
Provide
Changhong control Water fee, Marketing Cash 12 Dec. 2020; (www.cninfo.com.c
80 fuel 7.7 7.7 0.00% 15,000 N -
Jijia Fine under the electricity fees price settlement 30 Dec. 2020 n) No.: 2020-097,
power
Co., Ltd. same 2020-099, 2020-107
controlling
64
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
shareholder
and ultimate
controller
Other
enterprise
Sichuan control
Juchao Website
Changhong under the Provide Water fee,
Marketing Cash 12 Dec. 2020; (www.cninfo.com.c
81 Mold Plastic same fuel electricity fees, 351.05 351.05 0.04% 15,000 N -
price settlement 30 Dec. 2020 n) No.: 2020-097,
Tech. Co., controlling power steam fee
2020-099, 2020-107
Ltd. shareholder
and ultimate
controller
Other
enterprise
Sichuan control
Juchao Website
Zhiyijia under the Provide
Water fee, Marketing Cash 12 Dec. 2020; (www.cninfo.com.c
82 Network same fuel 2.5 2.5 0.00% 15,000 N -
electricity fees price settlement 30 Dec. 2020 n) No.: 2020-097,
Technology controlling power
2020-099, 2020-107
Co., Ltd. shareholder
and ultimate
controller
Other
enterprise
Sichuan
control
Changhong Juchao Website
under the Provide
Precision Water fee, Marketing Cash 12 Dec. 2020; (www.cninfo.com.c
83 same fuel 0.52 0.52 0.00% 15,000 N -
Electronics electricity fees price settlement 30 Dec. 2020 n) No.: 2020-097,
controlling power
Tech. Co., 2020-099, 2020-107
shareholder
Ltd.
and ultimate
controller
65
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
Other
enterprise
Sichuan control
Juchao Website
Changhong under the Provide Water fee,
Marketing Cash 12 Dec. 2020; (www.cninfo.com.c
84 Device same fuel electricity fees 31.09 31.09 0.00% 15,000 N -
price settlement 30 Dec. 2020 n) No.: 2020-097,
Technology controlling power and energy fees
2020-099, 2020-107
Co., Ltd. shareholder
and ultimate
controller
Other
enterprise
Changhong
control
Internationa Juchao Website
under the Provide
l Holdings Water fee, Marketing Cash 12 Dec. 2020; (www.cninfo.com.c
85 same fuel 2.32 2.32 0.00% 15,000 N -
(Hong electricity fees price settlement 30 Dec. 2020 n) No.: 2020-097,
controlling power
Kong) Co., 2020-099, 2020-107
shareholder
Ltd.
and ultimate
controller
Other
enterprise
control
Guangdong Rent to Juchao Website
under the
Changhong the Office building Marketing Cash 12 Dec. 2020; (www.cninfo.com.c
86 same 2.25 2.25 0.03% 5,000 N -
Electronics related for rent price settlement 30 Dec. 2020 n) No.: 2020-097,
controlling
Co., Ltd. party 2020-099, 2020-107
shareholder
and ultimate
controller
Hefei Other Rent to Apartments , Juchao Website
Marketing Cash 12 Dec. 2020;
87 Changhong enterprise the warehouses, 12.56 12.56 0.15% 5,000 N - (www.cninfo.com.c
price settlement 30 Dec. 2020
Industrial control related forklifts for rent n) No.: 2020-097,
66
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
Co., Ltd. under the party 2020-099, 2020-107
same
controlling
shareholder
and ultimate
controller
Other
enterprise
Sichuan control
Rent to Juchao Website
Aichuang under the
the Warehouse for Marketing Cash 12 Dec. 2020; (www.cninfo.com.c
88 Science & same 1.88 1.88 0.02% 3,100 N -
related rent price settlement 30 Dec. 2020 n) No.: 2020-097,
Technology controlling
party 2020-099, 2020-107
Co., Ltd. shareholder
and ultimate
controller
Other
enterprise
Sichuan control
Rent to Juchao Website
Ailian under the
the Warehouse for Marketing Cash 12 Dec. 2020; (www.cninfo.com.c
89 Science & same 0.1 0.1 0.00% 3,100 N -
related rent price settlement 30 Dec. 2020 n) No.: 2020-097,
Technology controlling
party 2020-099, 2020-107
Co., Ltd. shareholder
and ultimate
controller
Other
Sichuan enterprise Rent to Juchao Website
Hongwei control the Marketing Cash 12 Dec. 2020; (www.cninfo.com.c
90 Lease of factory 4.73 4.73 0.06% 5,000 N -
Technology under the related price settlement 30 Dec. 2020 n) No.: 2020-097,
Co., Ltd. same party 2020-099, 2020-107
controlling
67
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
shareholder
and ultimate
controller
Other
Sichuan enterprise
Service control
Rent to Juchao Website
Exp. under the
the Apartment, Marketing Cash 12 Dec. 2020; (www.cninfo.com.c
91 Appliance same 8.16 8.16 0.10% 5,000 N -
related forklift for rent price settlement 30 Dec. 2020 n) No.: 2020-097,
Service controlling
party 2020-099, 2020-107
Chain Co., shareholder
Ltd. and ultimate
controller
Sichuan Controlling Rent to Juchao Website
Changhong shareholder the Marketing Cash 12 Dec. 2020; (www.cninfo.com.c
92 Lease of factory 48.15 48.15 0.59% 5,000 N -
Electric Co., and ultimate related price settlement 30 Dec. 2020 n) No.: 2020-097,
Ltd. controller party 2020-099, 2020-107
Other
enterprise
control Warehouse,
Sichuan Rent to Juchao Website
under the apartment,
Changhong the Marketing Cash 12 Dec. 2020; (www.cninfo.com.c
93 same forklift, plant and 261.89 261.89 3.22% 5,000 N -
Jijia Fine related price settlement 30 Dec. 2020 n) No.: 2020-097,
controlling equipment for
Co., Ltd. party 2020-099, 2020-107
shareholder rent
and ultimate
controller
Sichuan Other
Rent to Juchao Website
Changhong enterprise Apartment and
the Marketing Cash 12 Dec. 2020; (www.cninfo.com.c
94 Precision control 2/F living area for 4.26 4.26 0.05% 5,000 N -
related price settlement 30 Dec. 2020 n) No.: 2020-097,
Electronics under the rent
party 2020-099, 2020-107
Tech. Co., same
68
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
Ltd. controlling
shareholder
and ultimate
controller
Other
enterprise Rental of
Sichuan control apartments,
Rent to Juchao Website
Changhong under the offices,
the Marketing Cash 12 Dec. 2020; (www.cninfo.com.c
95 Minsheng same warehouses, 91.38 91.38 1.12% 5,000 N -
related price settlement 30 Dec. 2020 n) No.: 2020-097,
Logistics controlling office buildings
party 2020-099, 2020-107
Co., Ltd. shareholder partially rented,
and ultimate factory buildings
controller
Other
Rental of
enterprise
apartments,
Sichuan control
Rent to warehouses, Juchao Website
Changhong under the
the plants, Marketing Cash 12 Dec. 2020; (www.cninfo.com.c
96 Mold Plastic same 445.81 445.81 5.49% 5,000 N -
related equipment, price settlement 30 Dec. 2020 n) No.: 2020-097,
Tech. Co., controlling
party second floor 2020-099, 2020-107
Ltd. shareholder
living quarters
and ultimate
controller
Other
enterprise
Sichuan
control Rent to Juchao Website
Changhong Rental of 2/F
under the the Marketing Cash 12 Dec. 2020; (www.cninfo.com.c
97 Device living quarters 109.1 109.1 1.34% 5,000 N -
same related price settlement 30 Dec. 2020 n) No.: 2020-097,
Technology and plants
controlling party 2020-099, 2020-107
Co., Ltd.
shareholder
and ultimate
69
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
controller
Other
enterprise
Sichuan control
Rent to Juchao Website
Zhiyijia under the
the Rental of Marketing Cash 12 Dec. 2020; (www.cninfo.com.c
98 Network same 9.9 9.9 0.12% 5,000 N -
related apartments price settlement 30 Dec. 2020 n) No.: 2020-097,
Technology controlling
party 2020-099, 2020-107
Co., Ltd. shareholder
and ultimate
controller
Other
enterprise
control
Guangdong Leasing Juchao Website
under the
Changhong from Lease of staff Marketing Cash 12 Dec. 2020; (www.cninfo.com.c
99 same 78.89 78.89 0.97% 5,000 N -
Electronics related dormitory, plant price settlement 30 Dec. 2020 n) No.: 2020-097,
controlling
Co., Ltd. party 2020-099, 2020-107
shareholder
and ultimate
controller
Sichuan Controlling Leasing Juchao Website
Changhong shareholder from Marketing Cash 12 Dec. 2020; (www.cninfo.com.c
100 Lease of plant 163.07 163.07 2.01% 5,000 N -
Electric Co., and ultimate related price settlement 30 Dec. 2020 n) No.: 2020-097,
Ltd. controller party 2020-099, 2020-107
Sichuan
Controlling Leasing Juchao Website
Changhong
shareholder from Lease of staff Marketing Cash 12 Dec. 2020; (www.cninfo.com.c
101 Electronics 10.58 10.58 0.13% 8,000 N -
and ultimate related dormitory price settlement 30 Dec. 2020 n) No.: 2020-097,
Holding
controller party 2020-099, 2020-107
Group Co.,
70
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
Ltd.
Other
enterprise
Purchas
control
081 e and Juchao Website
under the
Electronic construc Marketing Cash 12 Dec. 2020; (www.cninfo.com.c
102 same Plant construction 105.84 105.84 0.76% 10,000 N -
Group Co., tion of price settlement 30 Dec. 2020 n) No.: 2020-097,
controlling
Ltd. fixed 2020-099, 2020-107
shareholder
assets
and ultimate
controller
Other
enterprise
Sichuan Purchas
control
Hongcheng e and Engineering Juchao Website
under the
Constructio construc management of Marketing Cash 12 Dec. 2020; (www.cninfo.com.c
103 same 195.02 195.02 1.41% 8,000 N -
n tion of the plant price settlement 30 Dec. 2020 n) No.: 2020-097,
controlling
Engineering fixed construction 2020-099, 2020-107
shareholder
Co., Ltd. assets
and ultimate
controller
Other
enterprise
control
Sichuan Purchas Juchao Website
under the
Hongxin e of Marketing Cash 12 Dec. 2020; (www.cninfo.com.c
104 same Software 14.15 14.15 0.10% 10,000 N -
Software intangib price settlement 30 Dec. 2020 n) No.: 2020-097,
controlling
Co., Ltd. le assets 2020-099, 2020-107
shareholder
and ultimate
controller
71
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
Other
enterprise
Purchas
control
Sichuan e and Juchao Website
under the
Huanyu construc Marketing Cash 12 Dec. 2020; (www.cninfo.com.c
105 same Plant construction 36.7 36.7 0.27% 8,000 N -
Industrial tion of price settlement 30 Dec. 2020 n) No.: 2020-097,
controlling
Co., Ltd. fixed 2020-099, 2020-107
shareholder
assets
and ultimate
controller
Purchas
Fire fighting
Sichuan Controlling e and Juchao Website
renovation, low
Changhong shareholder construc Marketing Cash 12 Dec. 2020; (www.cninfo.com.c
106 voltage cabinet 0.56 0.56 0.00% 10,000 N -
Electric Co., and ultimate tion of price settlement 30 Dec. 2020 n) No.: 2020-097,
renovation
Ltd. controller fixed 2020-099, 2020-107
assets
Other
enterprise
Sichuan control
Purchas Juchao Website
Changhong under the Bank
e of Marketing 12 Dec. 2020; (www.cninfo.com.c
107 Mold Plastic same Mould 52.12 52.12 0.38% 10,000 N acceptanc -
fixed price 30 Dec. 2020 n) No.: 2020-097,
Tech. Co., controlling e
assets 2020-099, 2020-107
Ltd. shareholder
and ultimate
controller
Sichuan Other Purchasi Production line,
Spot
Changhong enterprise ng/Purc line-N2 line Juchao Website
exchange,
Intelligent control hase and transformation, Marketing 12 Dec. 2020; (www.cninfo.com.c
108 576.3 576.3 4.16% 7,000 N Bank -
Manufacturi under the construc vacuum line price 30 Dec. 2020 n) No.: 2020-097,
acceptanc
ng same tion of transformation 2020-099, 2020-107
e
Technology controlling fixed and self-service
72
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
Co., Ltd. shareholder assets sorting, baler
and ultimate quality
controller improvement
transformation
Other
enterprise
Juchao Website
control 12 Dec. 2020;
Yuanxin (www.cninfo.com.c
under the Financin 30 Dec. 2020;
Financial Financial Marketing Cash n) No.: 2020-097,
109 same g 34,194.22 34,194.22 -- 65,000 N - 13 July. 2021;
Lease Co., statement price settlement 2020-099, 2020-
controlling business 29 July. 2021
Ltd. 107,2021-050,2021-
shareholder
053,2021-058
and ultimate
controller
Total -- -- 602,472.56 -- -- -- -- -- --
Detail of sales return with major amount involved Not applicable
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 2021 was 2920 million yuan at most (tax-excluded), actually 1,159,021,800 yuan
occurred in reporting period.
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 subsidiary by the Company for year of 2021 was 646.5 million yuan at most (tax-excluded), actually 254,493,700 yuan occurred in
Report the actual implementation of the daily reporting period.
related transactions which were projected about 3. It is estimated that the related transaction amount resulted by purchasing or selling equipment, software, maintenance and spare parts and molds etc. from
their total amount by types during the reporting Sichuan Changhong and its subsidiary by the Company for year of 2021 was 100 million yuan at most (tax-excluded), actually 1,726,700 yuan occurred in
period (if applicable) reporting period.
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 2021 was 9760 million yuan at most (tax-excluded), actually 3,818,345,400 yuan occurred in reporting period.
5. It is estimated that the related transaction amount resulted by leasing business to Sichuan Changhong and its subsidiary by the Company for year of 2021
was 50 million yuan at most (tax-excluded), actually 12,401,500 yuan occurred in reporting period.
6. It is estimated that the related transaction amount from domestic finished goods logistic business outsourcing to Sichuan Changhong Minsheng Logistics
73
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
Co., Ltd. by the Company for year of 2021 was 520 million yuan at most (tax-excluded), actually 224,557,400 yuan occurred in reporting period.
7. 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 2021 was 350 million yuan at most actually 93,499,100 yuan occurred in reporting period.
8. 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 2021 was 56 million yuan at most (tax-excluded), actually 7,592,300 yuan occurred in
reporting period.
9. It is estimated that the related transaction amount resulted by selling goods and leasing business from Sichuan Changhong Electronics Holding Group Co.,
Ltd and its subsidiary by the Company for year of 2021 was 76 million yuan at most (tax-excluded), actually 20,041,400 yuan occurred in reporting period.
10. 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 Holding Group Co., Ltd. and its subsidiary by the Company for year of 2021 was 360 million yuan at most (tax-
excluded), actually 91,104,100 yuan occurred in reporting period.
11. It is estimated that the related transaction amount resulted by received the financing lease, commercial factoring and bill financing from Yuanxin Financial
Lease Co., Ltd was 650 million yuan at most, actually 341,942,200 yuan occurred in reporting period.
Reasons for major differences between trading
Not applicable
price and market reference price (if applicable)
74
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
(2) Related transactions by assets acquisition and sold
□ Applicable √ Not applicable
There are no related transactions by assets acquisition and sold in the period
(3) Material related transaction of jointly foreign investment
□ Applicable √ Not applicable
There are no material related transaction of jointly foreign investment occurred in the period
(4) 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
(5)Connect of related finance companies and finance companies controlled by the company
√ Applicable □ Not applicable
Deposit business
Maximum daily Opening balance Amount occurred Ending balance
Associated Deposit rate
Related party deposit limit (10 (10 thousand (10 thousand (10 thousand
relationships range
thousand yuan) yuan) yuan) yuan)
Other enterprise
Sichuan control under the
Changhong same controlling
450,000.00 0.35%-4.805% 279,825.60 8,253.55 288,079.15
Group Finance shareholder and
Co., Ltd. ultimate
controller
Loan business
Opening balance Amount occurred Ending balance
Associated Loan amount (10 Loan interest rate
Related party (10 thousand (10 thousand (10 thousand
relationships thousand yuan) range
yuan) yuan) yuan)
Other enterprise
Sichuan control under the
Changhong same controlling
450,000.00 0 0 0 0
Group Finance shareholder and
Co., Ltd. ultimate
controller
Credit or other financial service
Total amount (10 Amount occurred (10
Related party Associated relationships Business type
thousand yuan) thousand yuan)
Other enterprise control
Sichuan Changhong under the same Other financial services -
300,000.00 200,823.53
Group Finance Co., Ltd. controlling shareholder note issuance
and ultimate controller
Other enterprise control
Sichuan Changhong under the same Other financial services -
300,000.00 66,157.70
Group Finance Co., Ltd. controlling shareholder note discounting
and ultimate controller
Note 1: 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
75
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
million yuan with its own funds, the total capital increase will not exceed RMB one billion. After capital increased, registered capital
of Changhong Finance Company changed to 2,693,938,365.84 yuan. The Company and Changhong Huayi holds 14.96% equity of
Chonghong Finance Company respectively, and controlling shareholder of the Company -Sichuan Changhong Electric Co., Ltd and
its controlling shareholder Sichuan Changhong Electronics Holding Group Co., Ltd holds 35.04% equity of Changhong Finance
Company respectively.
Note 2: After deliberated and approved by the 41st session of 9th BOD and 4th extraordinary shareholders general meeting of 2020
held on 14 August 2020 and 12 October, it is agreed to continue the financial services cooperation between the Company and
Changhong Finance Company and renew the “Financial Service Agreement” for a period of three years. Changhong Finance
Company will provides a series of financial services such as deposit and loans within scope of operation according to the
requirements of Company and its subsidiaries.
(6) Other important related party transactions
√Applicable □ Not applicable
After deliberated and approved by the 7th session of 10th BOD, the 6th session of 10th BOS and 1st extraordinary
shareholders general meeting of 2021 held on 19 April 2021 and 16 June, it is agreed to terminate the use of
proceeds to purchase part of the intelligent infrastructure platform construction owned by Sichuan Changhong
Electronic Co., Ltd (hereinafter referred to as Sichuan Changhong) and its subsidiary Sichuan Hongwei
Technology Co., Ltd. (hereinafter referred to as Hongwei Technology) and Shenzhen Yijiaen Technology Co., Ltd.
(hereinafter referred to Yijiaen), software R&D platform and other R&D assets. As of the date of the Report
disclosed, the Company and the aforementioned related parties have completed the signing of the termination
agreement.
Related searches for disclosure website of interim report with major related transaction concerned
Interim report Disclosure date Website for disclosure
”Notice on the Termination of Assets Purchases and Juchao Website: http://www.cninfo.com.cn (Notice No.:
2021-4-20
Related Transactions” 2021-031)
XII. Significant contract and implementations
(1) 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
Explanation of leasing
76
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
Operational leasing of the Company please found more details in “investment real estate”, “fixed assets”, “Right-
of-use assets”, “Lease of related party” and “Rent of related party” in Note of Financial Statement.
Gains or losses to the Company from projects that reached over 10% in total profit of the Company in reporting
period.
□ Applicable √Not applicable
No gains or losses to the Company from projects that reached over 10% in total profit of the Company in
reporting period.
(2) Material guarantee
√ Applicable □ Not applicable
During the reporting period, 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 30 June 2021, the
external guarantees of the Company and subsidiaries are as follows:
77
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
In 10 thousand Yuan
Particulars about the external guarantee of the Company and subsidiaries (Barring the guarantee for subsidiaries)
Name of the Actual Counter Complete Guarantee
Related Announcement Guarantee Actual date of Collateral Guarantee
Company guarantee Guarantee type guarantee implementation for related
disclosure date limit happening (if any) term
guaranteed limit (if any) or not party
- - - - - - - - - - -
Total approving external guarantee in report period (A1) 0 Total actual occurred external guarantee in report period (A2) 0
Total approved external guarantee at the end of report period
0 Total actual balance of external guarantee at the end of report period (A4) 0
( A3)
Guarantee between the Company and the subsidiaries
Name of the Actual Counter Complete Guarantee
Related Announcement Guarantee Actual date of Collateral Guarantee
Company guarantee Guarantee type guarantee implementation for related
disclosure date limit happening (if any) term
guaranteed limit (if any) or not party
Notice No.: 2019-090 Joint and several N/A
5 March 2020 5,000.00 Y One year N N
and 2020-002 released on liability guarantee
26 December 2019 and Joint and several
9 March 2020 15,000.00 Y One year Y N
11 January 2020 liability guarantee
respectively Joint and several
27 March 2020 5,500.00 Y One year Y N
liability guarantee
Zhongshan
Joint and several
Changhong 20 March 2020 20,000.00 Y One year Y N
150,000.00 liability guarantee
Electric Co.,
Joint and several
Ltd. 14 April 2020 17,900.00 Y One year Y N
liability guarantee
Joint and several
28 April 2020 12,000.00 Y One year Y N
liability guarantee
Joint and several
10 June 2020 20,000.00 Y One year Y N
liability guarantee
17 August 2020 10,000.00 Joint and several Y One year Y N
78
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
liability guarantee
Joint and several
2 September 2020 15,000.00 Y One year N N
liability guarantee
Notice No.: 2020-097, Joint and several
26 March 2021 13,000.00 Y One year N N
2020-098, 2020-101 and liability guarantee
2020-107 released on 11 Joint and several
29 March 2021 18,000.00 Y One year N N
December 2020 and 30 liability guarantee
December respectively Joint and several
20 March 2021 20,000.00 Y One year N N
liability guarantee
140,000.00
Joint and several 11.5
1 April 2021 20,000.00 Y N N
liability guarantee months
Joint and several
6 April 2021 9,000.00 Y One year N N
liability guarantee
Joint and several
25 May 2021 10,000.00 Y One year N N
liability guarantee
Notice No.: 2019-090 Joint and several
2 April 2020 3,000.00 Y One year N N
and 2020-002 released on liability guarantee
26 December 2019 and Joint and several
2 April 2020 4,000.00 Y One year Y N
11 January 2020 liability guarantee
30,000.00
respectively Joint and several
17 August 2020 6,500.00 Y One year N N
Changhong liability guarantee
Meiling Ridian Joint and several
2 September 2020 5,000.00 Y One year N N
Technology liability guarantee
Co., Ltd. Notice No.: 2020-097,
Joint and several
2020-098, 2020-101 and 31 March 2021 4,000.00 Y One year N N
liability guarantee
2020-107 released on 11
30,000.00
December 2020 and 30
Joint and several
December respectively 9 June 2021 5,000.00 Y 6.8 months N N
liability guarantee
79
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
Notice No.: 2019-004,
2019-006 and 2019-012
released on 30 January Joint and several
14,000.00 30 December 2019 2,000.00 Y 11 months Y N
2019 and 23 February liability guarantee
respectively
Notice No.: 2019-090, Joint and several
10 March 2020 1,000.00 Y One year Y N
2020-002, 2020-012, liability guarantee
2020-019 and 2020-036 Joint and several
1 June 2020 1,500.00 Y 9.5 months Y N
released on 26 December liability guarantee
2019, 11 January 2020, Joint and several
Zhongke 18 June 2020 500.00 Y 8.6 months Y N
28 March 2020 and 30 liability guarantee
Meiling
May respectively Joint and several
Cryogenic 18,000.00 24 August 2020 2,000.00 Y One year Y N
liability guarantee
Technology
Joint and several
Co., Ltd. 25 September 2020 3,000.00 Y One year N N
liability guarantee
Joint and several
19 November 2020 1,000.00 Y One year N N
liability guarantee
Joint and several
25 December 2020 2,000.00 Y One year N N
liability guarantee
Notice No.: 2020-097,
2020-098, 2020-101 and
2020-107 released on 11 Joint and several
26,000.00 24 May 2021 5,000.00 Y One year N N
December 2020 and 30 liability guarantee
December respectively
80
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
Notice No.: 2020-097,
Sichuan 2020-098, 2020-101 and
Changhong 2020-107 released on 11
100,000.00 - - - - - - -
Air-conditioner December 2020 and 30
Co., Ltd. December respectively
Notice No.: 2019-083, Joint and several
23 December 2019 2,103.51 Y One year Y N
2019-084 and 2019-087 liability guarantee
released on 7 December 6345note 1
Joint and several 11.4
2019 and 18 December 16 December 2020 1,831.50 Y N N
liability guarantee months
Changhong respectively
RUBA Trade Notice No.: 2020-097,
Company 2020-098, 2020-101 and
2020-107 released on 11
5920.38note 2 - - - - - - -
December 2020 and 30
December respectively
Notice No.: 2019-090
and 2020-002 released on
Joint and several
26 December 2019 and 15,000.00 9 April 2020 10,000.00 Y One year Y N
liability guarantee
Jiangxi 11 January 2020
Meiling respectively
Electric Notice No.: 2020-097,
Appliance Co., 2020-098, 2020-101 and
Ltd. 2020-107 released on 11
10,000.00 - - - - - - -
December 2020 and 30
December respectively
81
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
Notice No.: 2019-090
and 2020-002 released on
Joint and several
26 December 2019 and 3,000.00 20 March 2020 1,000.00 Y One year Y N
liability guarantee
11 January 2020
Hefei Meiling
respectively
Nonferrous
Notice No.: 2020-097,
Metal Products
2020-098, 2020-101 and
Co., Ltd.
2020-107 released on 11
3,000.00 - - - - - - -
December 2020 and 30
December respectively
Notice No.: 2019-090
and 2020-002 released on
Joint and several
26 December 2019 and 50,000.00 26 March 2020 6,000.00 Y One year N N
liability guarantee
11 January 2020
Hefei Meiling
respectively
Group
Notice No.: 2020-097,
Holdings Joint and several
2020-098, 2020-101 and 30 December 2020 10,000.00 Y One year N N
Limited liability guarantee
2020-107 released on 11
50,000.00
December 2020 and 30
December respectively Joint and several
5 March 2021 5,000.00 Y One year N N
liability guarantee
Hefei Notice No.: 2021-008,
Changhong 2021-009, 2021-011 and
Meiling Life 2021-034 released on 3 35,000.00 - - - - - - -
Appliances March 2021and 29 April
Co., Ltd. respectively
82
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
Total amount of approving guarantee for
35,000.00 Total amount of actual occurred guarantee for subsidiaries in report period (B2) 291,835.01
subsidiaries in report period (B1)
Total amount of approved guarantee for
Total balance of actual guarantee for subsidiaries at the end of reporting period
subsidiaries at the end of reporting period 654,265.38 167,331.50
(B4)
(B3)
Guarantee of the subsidiaries for the subsidiaries
Name of the Actual Counter Complete Guarantee
Related Announcement Guarantee Actual date of Collateral Guarantee
Company guarantee Guarantee type guarantee implementation for related
disclosure date limit happening (if any) term
guaranteed limit (if any) or not party
Notice No.: 2021-013,
Anhui Tuoxing 2021-014, 2021-021 and
Joint and several
Technology 2021-034 released on 3 6,000.00 30 April 2021 500 - - 11 months N N
liability
Co., Ltd. March 2021and 29 April
respectively
Total amount of approving guarantee for
6,000.00 Total amount of actual occurred guarantee for subsidiaries in report period (C2) 500
subsidiaries in report period (C1)
Total amount of approved guarantee for
Total balance of actual guarantee for subsidiaries at the end of reporting period
subsidiaries at the end of reporting period 6,000.00 500
(C4)
(C3)
Total amount of guarantee of the Company (total of three abovementioned guarantee)
Total amount of actual occurred
Total amount of approving guarantee in report period
41,000.00 guarantee in report period 292,335.01
(A1+B1+C1)
(A2+B2+C2)
Total amount of approved guarantee at the end of Total balance of actual guarantee at the
660,265.38 167,831.50
report period (A3+B3+C3) end of report period (A4+B4+C4)
Ratio of actual guarantee (A4+B4+C4) in net assets of the Company 34.74%
Including:
83
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
Amount of guarantee for shareholders, actual controller and its related parties (D) 0
The debts guarantee amount provided for the guaranteed parties whose assets-
117,831.50
liability ratio exceed 70% directly or indirectly (E)
Proportion of total amount of guarantee in net assets of the Company exceed 50%
0
(F)
Total amount of the aforesaid three guarantees (D+E+F) 117,831.50
Explanations on possibly bearing joint and several liquidating responsibilities for
N/A
undue guarantees (if applicable)
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 7.05 on October 31, 2019. For details, please refer to the announcement
No. 2019-090 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 6.5782 on Nonmember 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. By the end of this report,, The maximum amount of guarantee provided by the approved company to the
subsidiary is 350 million Yuan by the approval, the actual amount of guarantee is 2,918,350,100 Yuan. At the end of the reporting period, the practical guarantee balance amounted to
1,673,315,000 Yuan, accounting for the Company’s latest net assets ratio of 34.64%; During the reporting period, the maximum credit guarantee provided by the Company to its subsidiaries
approved by the Company was 60 million yuan, the actual amount of guarantee incurred was 5 million yuan. As of 30 June 2021, the actual balance of guarantee provided by the subsidiaries to
subsidiaries was 5 million yuan, accounting for 0.10% of the Company’s latest net assets.
Explanation on guarantee with composite way: Not applicable
84
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
(3) Trust financing
√Applicable □ Not applicable
In 10 thousand Yuan
Impairment amount for
Type Capital sources Amount for entrust Undue balance Overdue amount overdue financial
management
Bank financing products Own fund 132,400 62,400 0 0
Bank financing products Idle raised funds 12,000 12,000 0 0
Total 144,400 74,400 0 0
Details of the single major amount, or high-risk trust investment with low security, poor fluidity and non-
guaranteed:
√Applicable □ Not applicable
85
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
In 10 thousand Yuan
Amount
Whet
of Summary
Refer her Whethe
Anticip Actual reserve of the
Criter ence appro r has
Trustee ated Actual collecte for items and
Sourc Star ia for annua ved entrust
institution Trustee Product Expir Capital investment income gains/lo d devalua related
Amount e of t fixing l rate by finance
(or name of type type y date purpose (if sses in gains/lo tion of query
funds date rewar of legal plan in
trustee) applica period sses in withdra index (if
d retur proce the
ble) period wing (if applicable
n dure future
applica )
(Y/N)
ble)
Deposits embedded in
financial derivatives Juchao
Principa
Hefei Branch 15 absorbed by banks are Annua Website(w
l-
of Bank of Idle Janu 15 linked to exchange rate lized Not ww.cninfo.
guarante
East Asia Bank 10,000.00 own ary July fluctuations so that return 3.60% 181.00 - - N/A Y applicab com.cn)
ed with
(China) Co., funds 202 2021 depositors can get s: le (Notice
floating
Ltd. 1 corresponding returns on 3.60% No.: 2021-
income
the basis of assuming 003)
certain risks.
Bank of Communications
operates the funds raised
by structured deposit
products in a unified
manner and manages
them in accordance with
the principle of separating Juchao
Principa
Mianyang basic deposits from Annua Website(w
l- 18
Branch of Idle 19 derivative transactions. lized Not ww.cninfo.
guarante Jan.
Bank of Bank 20,000.00 own Apr. The raised principal will return 3.15% 157.07 157.07 157.07 N/A Y applicab com.cn)
ed with 202
Communicati funds 2021 be included in the internal s: le (Notice
floating 1
ons Co., Ltd fund of Bank of 3.15% No.: 2021-
income
Communications for 003)
unified operation and
management, and will be
included in the payment
scope of deposit reserve
fund and deposit
insurance. The embedded
86
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
derivative part of products
will be linked to the
exchange rate, interest
rate, commodity and
index, etc.
Bank of Communications
operates the funds raised
by structured deposit
products in a unified
manner and manages
them in accordance with
the principle of separating
basic deposits from
derivative transactions.
The raised principal will
Juchao
Anhui Principa be included in the internal
Annua Website(w
Province l- 19
Idle 19 fund of Bank of lized Not ww.cninfo.
Branch of guarante Jan.
Bank 10,000.00 own Apr. return 3.15% 77.67 77.67 77.67 N/A Y applicab com.cn)
Bank of ed with 202 Communications for
funds 2021 s: le (Notice
Communicati floating 1
unified operation and 3.15% No.: 2021-
ons Co., Ltd income
003)
management, and will be
included in the payment
scope of deposit reserve
fund and deposit
insurance. The embedded
derivative part of products
will be linked to the
exchange rate, interest
rate, commodity and
index, etc.
87
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
The funds raised by this
product will be operated
uniformly by the Bank of
China and managed in
accordance with the
principle of separating
basic deposits from
derivative transactions.
The raised principal will
be included in the internal
Juchao
Capital fund for unified operation
Annua Website(w
Hefei Branch guarante 18 and management of the
Idle 14 lized Not ww.cninfo.
of Bank of ed Jan. Bank of China, and will
Bank 10,000.00 own July return 3.63% 176.03 - - N/A Y applicab com.cn)
China Co., minimu 202 be included in the
funds 2021 s: le (Notice
Ltd. m return 1 payment scope of deposit
3.63% No.: 2021-
type reserve fund and deposit
003)
insurance. The embedded
derivatives part of the
product is invested in the
exchange rate, interest
rate, commodity, index
and other derivatives
markets, and the final
performance of the
product is linked to the
derivatives.
Juchao
Principa A structured deposit
Annua Website(w
l- 20 products, and its
Hefei Branch Idle 21 lized Not ww.cninfo.
guarante Jan. derivative products are
of Bohai Bank Bank 5,000.00 own July return 3.50% 87.26 - - N/A Y applicab com.cn)
ed with 202 partially pegged to the
Co., Ltd. funds 2021 s: le (Notice
floating 1 mid-rate of the USD-JPY
3.50% No.: 2021-
income exchange rate.
003)
巨潮资讯
Principa A structured deposit 网
Annua
Chengdu l- 20 products, and its
Idle 21 lized Not （www.cni
Branch of guarante Jan. derivative products are
Bank 10,000.00 own July return 3.50% 174.52 - - N/A Y applicab nfo.com.cn
Bohai Bank ed with 202 partially pegged to the
Co., Ltd. floating
funds
1
2021
mid-rate of the USD-JPY
s: le ）（2021-
3.50% 004 号公
income exchange rate.
告)
88
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
The funds raised by this
product will be operated
uniformly by the Bank of
China and managed in
accordance with the
principle of separating
basic deposits from
derivative transactions.
The raised principal will
be included in the internal
fund for unified operation
and management of the
Bank of China, and will
Juchao
Capital be included in the
Annua Website(w
Mianyang guarante 18 payment scope of deposit
Idle 20 lized Not ww.cninfo.
Branch of ed Jan. reserve fund and deposit
Bank 20,000.00 own Apr. return 3.54% 178.45 178.45 178.45 N/A Y applicab com.cn)
Bank of China minimu 202 insurance. The embedded
funds 2021 s: le (Notice
Co., Ltd. m return 1 derivatives part of the
3.54% No.: 2021-
type product is invested in the
003)
exchange rate, interest
rate, commodity, index
and other derivatives
markets, and the final
performance of the
product is linked to the
derivatives. During the
investment period, Bank
of China valued the
embedded option price of
this structured deposit
based on the income
method
The principal part of this
product is incorporated
into the internal fund for
unified operation and Juchao
Principa
management of Industrial Annua Website(w
Hefei l- 26
Idle 28 and Commercial Bank of lized Not ww.cninfo.
Changdong guarante Jan.
Bank 10,000.00 own Apr. China, and the income return 3.30% 83.18 53.82 53.82 N/A Y applicab com.cn)
Branch of ed with 202
funds 2021 part is invested in s: le (Notice
ICBC floating 1
derivative products linked 3.30% No.: 2021-
income
to the exchange rate of 005)
US dollar against
Japanese yen, and the
product income is linked
89
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
to the performance of the
exchange rate of US
dollar against Japanese
yen in the international
market during the
observation period.
Investors' returns depend
on the performance of the
dollar-yen exchange rate
during the observation
period.
This product is an
embedded financial
derivatives of RMB
structured deposits, the
bank invests the raised
structured deposits funds
in fixed deposit of the
bank, at the same time,
the bank invests it in
financial derivative Juchao
Principa
15 transactions (including Annua Website(w
Hefei Branch l-
Idle Janu 15 but not limited to options lized Not ww.cninfo.
of China guarante
Bank 5,000.00 own ary Apr. and swaps and other return 3.00% 37.50 37.50 37.50 N/A Y applicab com.cn)
Everbright ed with
funds 202 2021 derivatives) in domestic s: le (Notice
Bank floating
1 or international financial 3.00% No.: 2021-
income
markets with the upper 004)
limit of the income of the
time deposit, the sum of
the profit and loss of the
financial derivative
transaction investment
and the bank deposit
interest constitutes the
income of the structured
deposit product.
This product is a
Juchao
Principa structured deposit
Hefei Luyang Annua Website(w
l- 6
Branch of Idle product, and its derivative lized Not ww.cninfo.
guarante May 6 July
Bank of Bank 5,000.00 own return 3.20% 26.74 - - N/A Y applicab com.cn)
ed with 202 2021 product is linked to the
Hangzhou funds s: le (Notice
floating 1
Co., Ltd. spot exchange rate of the 3.20% No.: 2021-
income
036)
Euro against the US dollar
90
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
published on the
Bloomberg page "BFIX"
at 14:00 Beijing time on
the observation date.
Bank of Communications
operates the funds raised
by structured deposit
products in a unified
manner and manages
them in accordance with
the principle of separating
basic deposits from
derivative transactions.
Juchao
Principa The raised principal will
Mianyang Annua Website(w
l- 10 be included in the internal
Branch of Idle lized Not ww.cninfo.
guarante May 1 July fund of Bank of
Bank of Bank 10,000.00 own return 3.31% 47.16 - - N/A Y applicab com.cn)
ed with 202 2021 Communications for
Communicati funds s: le (Notice
floating 1 unified operation and
ons Co., Ltd 3.31% No.: 2021-
income management, and will be
036)
included in the payment
scope of deposit reserve
fund and deposit
insurance. The embedded
derivative part of products
will be linked to the
exchange rate, interest
rate, commodity and
index, etc.
This product is an
embedded financial
derivatives of RMB
structured deposits, the
bank invests the raised Juchao
Principa
Mianyang structured deposits funds Annua Website(w
l- 6
Branch of Idle in fixed deposit of the lized Not ww.cninfo.
guarante May 9 July
China Bank 5,000.00 own bank, at the same time, return 3.30% 28.88 - - N/A Y applicab com.cn)
ed with 202 2021
Everbright funds the bank invests it in s: le (Notice
floating 1
Bank financial derivative 3.30% No.: 2021-
income
transactions (including 036)
but not limited to options
and swaps and other
derivatives) in domestic
or international financial
91
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
markets with the upper
limit of the income of the
time deposit, the sum of
the profit and loss of the
financial derivative
transaction investment
and the bank deposit
interest constitutes the
income of the structured
deposit product.
This product is a
Juchao
Principa structured deposit
Annua Website(w
l- 8 product, the derivative
Hefei Branch Idle lized Not ww.cninfo.
guarante May 7 July product of which is linked
of Industrial Bank 5,000.00 own return 3.28% 26.96 - - N/A Y applicab com.cn)
ed with 202 2021 to the morning benchmark
Bank funds s: le (Notice
floating 1 price of Shanghai Gold
3.28% No.: 2021-
income Exchange on the
037)
observation date.
The funds raised by this
product will be operated
uniformly by the Bank of
China and managed in
accordance with the
principle of separating
basic deposits from
derivative transactions.
The raised principal will
be included in the internal
Juchao
Capital fund for unified operation
Annua Website(w
Hefei Branch guarante 10 and management of the
Idle 22 lized Not ww.cninfo.
of Bank of ed May Bank of China, and will
Bank 5,000.00 own June return 3.29% 19.38 19.38 19.38 N/A Y applicab com.cn)
China Co., minimu 202 be included in the
funds 2021 s: le (Notice
Ltd. m return 1 payment scope of deposit
3.29% No.: 2021-
type reserve fund and deposit
037)
insurance. The embedded
derivatives part of the
product is invested in the
exchange rate, interest
rate, commodity, index
and other derivatives
markets, and the final
performance of the
product is linked to the
derivatives.
92
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
This product is a
Juchao
Principa structured deposit
Annua Website(w
l- 27
Mianyang Idle 27 product, the structured lized Not ww.cninfo.
guarante May
Branch of Bank 12,000.00 fund Aug. return 3.40% 102.84 - - N/A Y applicab com.cn)
ed with 202 derivatives of which is
Ping An Bank raised 2021 s: le (Notice
floating 1
linked to the CSI 500 3.40% No.: 2021-
income
041)
index.
Bank of Communications
operates the funds raised
by structured deposit
products in a unified
manner and manages
them in accordance with
the principle of separating
basic deposits from
derivative transactions.
Zhong Juchao
Principa The raised principal will
Zhongshan shan Annua Website(w
l- 1 be included in the internal
Branch of Chang lized Not ww.cninfo.
guarante July 8 Oct. fund of Bank of
Bank of Bank 2,400.00 hongI return 3.20% 20.83 - - N/A Y applicab com.cn)
ed with 202 2021 Communications for
Communicati dle s: le (Notice
floating 1 unified operation and
ons own 3.20% No.: 2021-
income management, and will be
funds 048)
included in the payment
scope of deposit reserve
fund and deposit
insurance. The embedded
derivative part of products
will be linked to the
exchange rate, interest
rate, commodity and
index, etc.
Total 144,400.00 -- -- -- -- -- -- 1,425.47 523.89 -- -- -- -- --
Entrust financial expected to be unable to recover the principal or impairment might be occurred
□Applicable √ Not applicable
93
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
(4) Major contracts for daily operations
□Applicable √ Not applicable
(5) Other material contracts
□Applicable √ Not applicable
No other material contracts in the period
94
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
XIII. Explanation on other significant events
√Applicable □ Not applicable
1. After deliberated and approved by the 5th session of 10th BOD, 4th session of 10th BOS and Annual General
Meeting of 2020, the Company agrees to use the idle fund raised up to 120 million yuan (the amount can be used
o a rolling basis) to invest in capital-protected financial products with high security, good liquidity and a
maximum term of not more than one year for a single product. 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. 2021-008, 2021-009, 2021-010 and 2021-034) on 3
March 2021 and 29 April 2021.
2. After deliberated and approved by the 5th session of 10th BOD, the Company agrees to invest 24.4276 million
yuan in the technical transformation of the refrigerator (cabinet) production line of Hefei Base to achieved cost
reduction and efficiency enhancement in order to reduce the manufacturing costs and further enhance the market
competitiveness of the Company’s products. 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. 2021-008) on 3 March 2021.
3. After deliberated and approved by the 6th session of 10th BOD and Annual General Meeting of 2020, it agreed
that the Company and its subsidiaries shall carry out forward foreign exchange fund trading business during the
period from 1 July 2021 to 30 June 2022. Balance of trading not exceeding US$ 720 million (mainly including
USD, AUD, EUR and other foreign exchange converted to USD), and the maximum period of delivery of a single
business shall not exceed 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. 2021-013, 2021-019 and 2021-034) on 3 March 2021 and 29 April 2021.
4. After deliberated and approved by the 6th session of 10th BOD and Annual General Meeting of 2020, it agreed
the Company’s formulation of “Shareholders Return Plan for the Next Three Years (2021-2023)”. 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. 2021-013 and
2021-034) on 31 March 2021 and 29 April 2021.
5. After deliberated and approved by the 6th session of 10th BOD, it was agreed to appointed Mr. Tang Youdao as
the vice president of the Company, office term is same as the 10th BOD. 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. 2021-013 ) on 31 March 2021.
6. The resolution of the 6th session of the tenth board of directors and the 2020 annual general meeting of
shareholders approved and agreed that the company and its subsidiaries apply to Industrial Bank Co., Ltd., Hefei
Branch for a special credit line of bill pool of up to 300 million yuan, and agreed that the company and its
95
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
subsidiaries apply to Ping An Bank Co., Ltd. Hefei Branch for a special credit line of bill pool of up to 300
million yuan, and agreed that the company and its subsidiaries apply to Huishang Bank Co., Ltd. Hefei Economic
Development Zone Branch for a special credit line of bill pool of up to 300 million yuan, and agreed that the
company and its subsidiaries apply to China Merchants Bank Co., Ltd., Hefei Branch for a special credit line of
bill pool of up to 300 million yuan, and agreed that the company and its subsidiaries apply to China Citic Bank
Co., Ltd., Hefei Branch for a special credit line of bill pool of up to 50 million yuan. The credit period is one year,
and the types of credit are mainly used for the special business of bill pool, and endorsement for pledge is adopted.
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. 2021-013,
2021-022 and 2021-034) on 31 March 2021 and 29 April 2021.
7. The 6th session of the tenth board of directors and the 2020 annual general meeting of shareholders of the
company approved the renewal of Shine Wing Accounting Firm (special general partnership) as the company's
2021 annual financial report and internal control audit firm for one year. At the same time, the shareholders'
general meeting authorized the management of the company to determine the annual audit remuneration in
accordance with the industry standards and the actual audit work of the 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. 2021-013, 2021-017 and 2021-034) on 31
March 2021 and 29 April 2021.
8. Mr. Zhu Wenjie, the former securities affairs representative and staff supervisor of the company, applied to
resign his position as staff supervisor and securities affairs representative of the tenth board of the company due to
personal reasons. In order to ensure that the structure of the board of supervisors in accordance with relevant legal
requirements, the company’s congress of staff and workers held a meeting on March 30, 2021, it’s agreed to elect
Ms. Sun Hongying as the staff representative supervisor of the tenth board of the company by voting of staff
representatives, and the term of office is from the date of approval to the deliberation of the company’s congress
of staff and workers to the date of expiration of the tenth board of supervisors. 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. 2021-023) on 31 March 2021.
9. After deliberated and approved by the 7th session of 10th BOD and 6th session of 10th BOS, it was agreed that
the Company should implement the new leasing standard and change the related accounting policy according to
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. 2021-028, 2021-029 and 2021-030) on 20 April 2021.
10. The 7th session of the tenth board of directors, the 6th session of the tenth board of supervisors and the first
extraordinary general meeting of shareholders in 2021 approved and agreed that the company terminates the use
of the raised funds to purchase underlying assets of the sub-project "intelligent research and development
management platform construction" of the "intelligent research and development ability building and intelligent
home appliance technology development project" from Sichuan Changhong Electric Co., Ltd. and its subsidiaries
96
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
and the related 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. 2021-028, 2021-029, 2021-031 and 2021-046) on 20 April 2021 and 17 June
2021.
11. The resolution of the 8th session of the tenth board of directors approved and agreed that the company and its
subsidiaries apply to Bank of Jiujiang , Hefei Branch for a special credit line of up to 400 million yuan of bill pool,
the credit period is one year, the types of credit are mainly used for the special business of bill pool, and
endorsement for pledge is adopted. 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. 2021-038 and 2021-039) on 27 May 2021.
XIV. Major event of the subsidiary
√Applicable □ Not applicable
1. After deliberated and approved by the 5th session of 10th BOD, it was agreed the subordinate controlling
subsidiary - Zhongke Meiling to invested 10 million yuan to establish a wholly-owned subsidiary -- Anhui Lingan
Medical Equipment Co., Ltd. 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. 2021-008) on 3 March 2021.
2. After deliberated and approved by the 5th session of 10th BOD, 4th session of 10th BOS and Annual General
Meeting of 2020, it was agreed to provide a credit guarantee of up to 350 million yuan to subordinate controlling
subsidiary - Changmei Life Electric, with a guarantee period of 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. 2021-008, 2021-009, 2021-011 and 2021-
034 ) on 3 March 2021 and 29 April 2021.
3. After deliberated and approved by the 6th session of 10th BOD, 5th session of 10th BOS and Annual General
Meeting of 2020, it was agreed that Zhongshan Changhong (subsidiary of the Company) to write off the bad debts
of 1,657,332.46 yuan in total that have become uncollectible. 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. 2021-008, 2021-013, 2021-014, 2021-020 and 2021-034 ) on
31 March 2021 and 29 April 2021.
4. After deliberated and approved by the 6th session of 10th BOD, 5th session of 10th BOS and Annual General
Meeting of 2020, it was agreed that Zhongke Meiling Cryogenic Technology Co., Ltd. (controlling subsidiary of
the Company) to provide a credit guarantee of 60 million yuan to its wholly-owned subsidiary - Anhui Tuoxing
Technology Co., Ltd, with guarantee of 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. 2021-013, 2021-014, 2021-021 and 2021-034 ) on 31 March 2021
and 29 April 2021.
97
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
5. The resolution of the 8th session of the tenth board of directors agreed that the company's wholly-owned
subsidiary Hefei Meiling Wulian Technology Co., Ltd invests 37.69 million yuan in building industrial internet
service capacity to further expand informatization and digital business and service capacity, and build a
comprehensive capability of new business type integrating "manufacturing + service" businesses. 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. 2021-038 ) on
27 May 2021.
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CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
Section VII. Changes in Shares and Particulars about Shareholders
I. Changes in Share Capital
(i) Changes in Share Capital
In Share
Before the Change Increase/Decrease in the Change (+, -) After the Change
Public
reserve
New
Proportio Bonus transfer Proportio
Amount shares Others Subtotal Amount
n shares into n
issued
share
capital
I. Restricted shares 10,472,676 1.00% 0 0 0 -2,029,754 -2,029,754 8,442,922 0.81%
1. State-owned shares 0 0.00% 0 0 0 0 0 0 0.00%
2. State-owned legal
1,653,735 0.16% 0 0 0 0 0 1,653,735 0.16%
person’s shares
3. Other domestic shares 7,551,521 0.72% 0 0 0 -2,029,754 -2,029,754 5,521,767 0.53%
Including: Domestic legal
3,978,329 0.38% 0 0 0 0 0 3,978,329 0.38%
person’s shares
Domestic natural
3,573,192 0.34% 0 0 0 -2,029,754 -2,029,754 1,543,438 0.15%
person’s shares
4. Foreign shares 1,267,420 0.12% 0 0 0 0 0 1,267,420 0.12%
Including: Foreign legal
0 0.00% 0 0 0 0 0 0 0.00%
person’s shares
Foreign natural
1,267,420 0.12% 0 0 0 0 0 1,267,420 0.12%
person’s shares
II. Unrestricted shares 1,034,125,205 99.00% 0 0 0 +2,029,754 +2,029,754 1,036,154,959 99.19%
1. RMB ordinary shares 872,528,625 83.53% 0 0 0 +2,029,754 +2,029,754 874,558,379 83.72%
2. Domestically listed
161,596,580 15.47% 0 0 0 0 0 161,596,580 15.47%
foreign shares
3. Overseas listed foreign
0 0.00% 0 0 0 0 0 0 0.00%
shares
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
In accordance with the relevant provisions of the Implementation Rules for Share Reduction of Shareholders,
Directors, Supervisors and Senior Managers of Listed Companies at Shenzhen Stock Exchange, if the a director,
supervisor or senior manager quits before the expiration of the term of office, he/she shall continue to abide by the
relevant provisions on the release of restricted share sales within the term determined when he took office and
within six months after the expiration of his/her term of office. During the reporting period, the term of office of
some of the directors, supervisors and senior managers of the ninth board of directors of the company expired for
six months, and the restrictions on sales of total 2,029,754 shares held by them were lifted.
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CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
2. Approval of share changed
□ Applicable √ Not applicable
3. Ownership transfer of share changed
□ Applicable √ Not applicable
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, 2021-012, 2021-
025, 2021-035, 2021-042, 2021-045, 2021-049 and 2021-059) 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 June 30, 2021, and repurchased
9,377,869 shares of the company by centralized bidding through a dedicated securities account for repurchase,
accounting for 0.8977% 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$20,112,237.81 (excluding transaction fees such as stamp duty and commission).
As of the disclosure date of this report, 9,582,882 shares of the company have been repurchased by centralized
bidding through the special securities account for repurchase, accounting for 0.9174% of the 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$20,552,943.96 (excluding transaction fees
such as stamp duty and commission).
5. Implementation progress of reducing holdings of shares buy-back 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 or need to disclosed under requirement from security regulators
□ Applicable √ Not applicable
(ii) Changes of lock-up stocks
√ Applicable □ Not applicable
In Share
Restricte Ending
Sharehold Opening Shares d shares Restricte Date for released
ers shares released in shares d
restricte
100
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
restricted Period increase d reasons
d
in
Period
On October 24, 2017, due to job transfer, Zhang Xiaolong no longer served
as vice president of the Company. According to the relevant provisions of
the Implementation Rules for Share Reduction of Shareholders, Directors,
Share
lockup Supervisors and Senior Managers of Listed Companies at Shenzhen Stock
Zhang
363,525 363,525 0 0 in senior
Xiaolong Exchange, the original term of office should expire on September 12, 2020.
executiv
es During the reporting period, his/her term of office has expired for six
months, and all restrictions on sales of the company's shares have been
lifted.
On November 21, 2017, due to job transfer, Liao Tao no longer served as
vice president of the Company. According to the relevant provisions of the
Implementation Rules for Share Reduction of Shareholders, Directors,
Share
lockup Supervisors and Senior Managers of Listed Companies at Shenzhen Stock
Liao Tao 528,724 528,724 0 0 in senior
Exchange, the original term of office should expire on September 12, 2020.
executiv
es During the reporting period, his/her term of office has expired for six
months, and all restrictions on sales of the company's shares have been
lifted.
On June 2, 2018, due to job transfer, Teng Guangsheng no longer served as
director of the Company. According to the relevant provisions of the
Implementation Rules for Share Reduction of Shareholders, Directors,
Share
Teng lockup Supervisors and Senior Managers of Listed Companies at Shenzhen Stock
Guangshe 66,150 66,150 0 0 in senior
Exchange, the original term of office should expire on September 12, 2020.
ng executiv
es During the reporting period, his/her term of office has expired for six
months, and all restrictions on sales of the company's shares have been
lifted.
On April 25, 2019, due to job transfer, Li Wei no longer served as chairman
of the Company. According to the relevant provisions of the
Implementation Rules for Share Reduction of Shareholders, Directors,
Share
lockup Supervisors and Senior Managers of Listed Companies at Shenzhen Stock
Li Wei 1,071,355 1,071,355 0 0 in senior
Exchange, the original term of office should expire on September 12, 2020.
executiv
es During the reporting period, his/her term of office has expired for six
months, and all restrictions on sales of the company's shares have been
lifted.
Total 2,029,754 2,029,754 0 0 -- --
II. Securities issuance and listing
□ Applicable √ Not applicable
III. Amount of shareholders of the Company and particulars about shares holding
In Share
101
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
Total common stock shareholders in reporting Total preference shareholders with voting rights recovered
76,311 0
period-end at end of reporting period (if applicable)
Particulars about common shares held above 5% by shareholders or top ten common shareholders
Amount Information of
Amount of
of shares pledged,
common
Proportion restricte Amount of common tagged or frozen
Nature of shares held at Changes in
Full name of Shareholders of shares d shares held without
shareholder the end of report period State
held common restriction
reporting of Amount
shares
period share
held
State-owned
Sichuan Changhong Electric Co., Ltd. 23.79% 248,457,724 0 0 248,457,724 - -
legal person
Hefei Industry Investment Holding State-owned
4.58% 47,823,401 0 0 47,823,401 - -
(Group) Co., Ltd. legal person
CHANGHONG (HK) TRADING Foreign
2.59% 27,077,797 0 0 27,077,797 - -
LIMITED legal person
Domestic
Ma Guobin nature 1.95% 20,324,900 +7,093,846 0 20,324,900 - -
person
Foreign
CAO SHENGCHUN nature 1.41% 14,766,086 0 0 14,766,086 - -
person
Domestic
Caitong Fund- Ningbo Bank-Haitong
non-state-
Xingtai (Anhui) Emerging Industry 1.03% 10,733,452 0 0 10,733,452 - -
owned legal
Investment Fund (Limited Partnership)
person
Foreign
Philip Securities (H.K.) Co., Ltd. 0.60% 6,296,913 0 0 6,296,913 - -
legal person
Domestic
Wang Yumei nature 0.56% 5,818,600 +5,818,600 0 5,818,600 - -
person
Domestic
Gu Jie nature 0.41% 4,285,700 0 0 4,285,700 - -
person
Domestic
Long Qinfang nature 0.34% 3,558,116 0 0 3,558,116 - -
person
Strategy investor or general legal person becoming the
top 10 common shareholders by placing new shares (if Not applicable
applicable)
Among the above shareholders, CHANGHONG (HK) TRADING LIMITED (hereinafter
Explanation on associated relationship among the referred to as Hong Kong Changhong) is the wholly-owned subsidiary of Sichuan
aforesaid shareholders Changhong Electric Co., Ltd.; except the B shares of the Company directly held by Hong
Kong Changhong, 6,296,913 shares of B-stock are also held through Phillip Securities
102
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
(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 among Sichuan Changhong, Hong Kong Changhong and
other top 7 shareholders （Excluding 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”.
Description of the above shareholders in relation to
delegate/entrusted voting rights and abstention from Not applicable
voting rights.
As of the disclosure date of the Report, the Company has repurchased a total of 9,582,882
Special note on the repurchase account among the top shares of the Company through repurchase specific account for repurchase by means of
10 shareholders (if applicable) centralized competitive bidding, representing 0.9174% of the total shares capital of the
Company.
Particular about top ten shareholders with un-lock up common stocks held
Amount of common shares Type of shares
Shareholders’ name held without restriction at
Type Amount
Period-end
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
Ma Guobin 20,324,900 RMB ordinary shares 20,324,900
Domestically listed
CAO SHENGCHUN 14,766,086 14,766,086
foreign shares
Caitong Fund- Ningbo Bank-Haitong Xingtai (Anhui) Emerging Industry
10,733,452 RMB ordinary shares 10,733,452
Investment Fund (Limited Partnership)
Domestically listed
Philip Securities (H.K.) Co., Ltd. 6,296,913 6,296,913
foreign shares
Wang Yumei 5,818,600 RMB ordinary shares 5,818,600
Gu Jie 4,285,700 RMB ordinary shares 4,285,700
Domestically listed
Long Qinfang 3,558,116 3,558,116
foreign shares
Expiation on associated relationship or consistent actors within the top 10 un-
Found more in “Particulars about shares held above 5% by
lock up common shareholders and between top 10 un-lock up common
common shareholders or top 10 common shares holding”
shareholders and top 10 common shareholders
As of June 30, 2021, among the top 10 common shareholders, Ma
Explanation on top 10 common shareholders involving margin business (if Guobin holds 20,324,300 shares of the Company through customer
applicable) credit trading secured account of Founder Securities Co., Ltd., and
600 shares hold through common securities account, thus
103
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
20,324,900 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 top ten common stock shareholders or top ten common stock shareholders with un-lock up shares held
have a buy-back agreement dealing in reporting period
□ Yes √ No
The top ten common stock shareholders or top ten common stock shareholders with un-lock up shares held of the
Company have no buy-back agreement dealing in reporting period.
IV. Changes of shares held by directors, supervisors and senior executives
□ Applicable √ Not applicable
Shares held by directors, supervisors and senior executives have no changes in reporting period, found more
details in Annual Report 2020.
V. Changes in controlling shareholders or actual controllers
(i) Change of controlling shareholder during the reporting period
□ Applicable √ Not applicable
The Company had no change of controlling shareholder during the reporting period
(ii) Change of actual controller during the reporting period
□ Applicable √ Not applicable
The Company had no change of actual controller during the reporting period
104
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
Section VIII. Preferred Stock
□ Applicable √ Not applicable
The Company had no preferred stock in the Period
105
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
Section IX. Corporate Bonds
□ Applicable √ Not applicable
106
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
Section X. Financial Report
I. Audit report
Whether the semi annual report is audited
□ Yes √ No
The company's semi annual financial report has not been audited
II. Financial Statement
Statement in Financial Notes are carried in RMB/CNY
1. Consolidated Balance Sheet
Prepared by CHANGHONG MEILING CO., LTD.
In RMB
Item June 30, 2021 December 31, 2020
Current assets:
Monetary funds 5,310,519,267.78 6,594,786,789.98
Settlement provisions
Capital lent
Trading financial assets 755,672,778.49 47,242,339.07
Derivative financial assets
Note receivable 225,980,582.49 340,421,386.71
Account receivable 2,546,059,071.18 1,130,275,780.66
Receivable financing 1,132,467,568.98 1,632,388,702.83
Accounts paid in advance 54,246,200.90 30,105,373.40
Insurance receivable
Reinsurance receivables
Contract reserve of reinsurance receivable
Other account receivable 119,579,871.70 145,705,978.26
Including: Interest receivable
Dividend receivable
Buying back the sale of financial assets
Inventories 2,285,488,785.06 1,715,354,951.43
Contractual assets
Assets held for sale
Non-current asset due within one year
Other current assets 219,339,591.32 198,353,464.98
Total current assets 12,649,353,717.90 11,834,634,767.32
Non-current assets:
Loans and payments on behalf
Debt investment
Other debt investment
Long-term account receivable
Long-term equity investment 59,080,517.76 76,982,822.38
Investment in other equity instrument
107
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
Other non-current financial assets 548,148,931.34 548,148,931.34
Investment real estate 54,108,683.17 53,888,462.00
Fixed assets 2,350,222,653.32 2,391,859,440.31
Construction in progress 70,466,482.26 60,775,088.96
Productive biological asset
Oil and gas asset
Right-of-use assets 20,282,488.32
Intangible assets 927,615,291.27 936,851,520.65
Expense on Research and Development 96,330,033.73 73,028,441.56
Goodwill
Long-term expenses to be apportioned
Deferred income tax asset 107,738,248.10 127,185,979.94
Other non-current asset
Total non-current asset 4,233,993,329.27 4,268,720,687.14
Total assets 16,883,347,047.17 16,103,355,454.46
Current liabilities:
Short-term loans 869,283,195.68 1,336,209,050.55
Loan from central bank
Capital borrowed
Trading financial liability 2,746,170.22 4,584,076.51
Derivative financial liability
Note payable 4,988,353,889.72 4,439,607,982.34
Account payable 3,669,199,259.64 2,851,999,684.30
Accounts received in advance
Contractual liability 344,400,472.19 522,550,891.28
Selling financial asset of repurchase
Absorbing deposit and interbank deposit
Security trading of agency
Security sales of agency
Wage payable 196,823,503.48 290,321,776.05
Taxes payable 119,719,710.97 89,682,433.90
Other account payable 878,414,887.45 724,701,686.72
Including: Interest payable
Dividend payable 19,567,820.81 4,466,628.25
Commission charge and commission payable
Reinsurance payable
Liability held for sale
Non-current liabilities due within one year 421,663,697.44 407,825,150.74
Other current liabilities 23,101,717.53 22,923,698.73
Total current liabilities 11,513,706,504.32 10,690,406,431.12
Non-current liabilities:
Insurance contract reserve
Long-term loans 178,000,000.00 188,231,439.30
Bonds payable
Including: Preferred stock
Perpetual capital securities
Lease liability 12,529,575.32
Long-term account payable 1,433,821.62 1,705,323.91
Long-term wages payable 9,175,955.85 10,571,526.69
108
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
Accrual liability 23,102,517.39 62,392,735.07
Deferred income 167,352,922.29 177,377,450.12
Deferred income tax liabilities 6,920,365.79 10,575,582.33
Other non-current liabilities
Total non-current liabilities 398,515,158.26 450,854,057.42
Total liabilities 11,912,221,662.58 11,141,260,488.54
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 2,683,833,493.92 2,683,837,229.12
Less: Inventory shares 16,958,477.28 9,929,336.18
Other comprehensive income -22,722,447.52 -21,451,084.17
Reasonable reserve
Surplus public reserve 416,364,790.43 416,364,790.43
Provision of general risk
Retained profit 726,135,293.17 740,754,202.23
Total owner’ s equity attributable to parent company 4,831,250,533.72 4,854,173,682.43
Minority interests 139,874,850.87 107,921,283.49
Total owner’ s equity 4,971,125,384.59 4,962,094,965.92
Total liabilities and owner’ s equity 16,883,347,047.17 16,103,355,454.46
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 June 30, 2021 December 31, 2020
Current assets:
Monetary funds 3,072,458,869.77 4,605,962,184.11
Trading financial assets 734,738,131.52 37,589,391.07
Derivative financial assets
Note receivable 77,418,060.60 286,990,200.00
Account receivable 1,868,146,673.14 1,019,299,017.40
Receivable financing 1,020,374,809.16 1,561,429,139.80
Accounts paid in advance 62,698,224.34 39,571,728.09
Other account receivable 46,277,319.42 49,093,918.57
Including: Interest receivable
Dividend receivable
Inventories 631,726,937.31 578,905,855.30
Contractual assets
Assets held for sale
Non-current assets maturing within one year
109
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
Other current assets 126,732,141.71 142,573,164.77
Total current assets 7,640,571,166.97 8,321,414,599.11
Non-current assets:
Debt investment
Other debt investment
Long-term receivables
Long-term equity investments 1,854,070,770.46 1,834,115,835.95
Investment in other equity instrument
Other non-current financial assets 548,148,931.34 548,148,931.34
Investment real estate 3,857,164.06 3,961,590.38
Fixed assets 1,203,325,322.41 1,229,803,474.56
Construction in progress 57,766,896.80 47,570,309.13
Productive biological assets
Oil and natural gas assets
Right-of-use assets
Intangible assets 460,793,473.27 479,923,618.32
Research and development costs 65,641,364.07 42,913,363.51
Goodwill
Long-term deferred expenses
Deferred income tax assets 84,639,482.94 103,462,284.33
Other non-current assets
Total non-current assets 4,278,243,405.35 4,289,899,407.52
Total assets 11,918,814,572.32 12,611,314,006.63
Current liabilities:
Short-term borrowings 841,084,474.45 1,234,926,592.05
Trading financial liability 1,293,006.11 2,512,269.00
Derivative financial liability
Notes payable 2,531,614,143.77 2,510,288,511.69
Account payable 1,771,323,826.18 1,918,960,127.71
Accounts received in advance
Contractual liability 154,407,810.42 281,974,752.24
Wage payable 58,931,758.91 130,314,834.51
Taxes payable 15,899,092.72 19,582,700.30
Other accounts payable 692,819,441.99 624,090,798.72
Including: Interest payable
Dividend payable 18,967,820.81 3,866,628.25
Liability held for sale
Non-current liabilities due within one year 413,561,652.50 407,141,888.08
Other current liabilities 5,879,984.75 6,432,113.43
Total current liabilities 6,486,815,191.80 7,136,224,587.73
Non-current liabilities:
Long-term loans 178,000,000.00 188,231,439.30
Bonds payable
Including: Preferred stock
Perpetual capital securities
Lease liability
Long-term account payable
Long term employee compensation payable 9,175,955.85 10,571,526.69
Accrued liabilities 23,102,517.39 55,035,910.31
110
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
Deferred income 66,134,567.35 67,315,337.57
Deferred income tax liabilities 2,858,108.51 6,102,908.01
Other non-current liabilities
Total non-current liabilities 279,271,149.10 327,257,121.88
Total liabilities 6,766,086,340.90 7,463,481,709.61
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 2,753,134,052.79 2,753,137,787.99
Less: Inventory shares 16,958,477.28 9,929,336.18
Other comprehensive income -
Special reserve
Surplus reserve 416,146,624.75 416,146,624.75
Retained profit 955,808,150.16 943,879,339.46
Total owner’s equity 5,152,728,231.42 5,147,832,297.02
Total liabilities and owner’s equity 11,918,814,572.32 12,611,314,006.63
Legal Representative: Wu Dinggang
Person in charge of accounting works: Pang Haitao
Person in charge of accounting institute: Yang Jun
3. Consolidated Profit Statement
In RMB
Item semi-annual of 2021 semi-annual of 2020
I. Total operating income 9,602,759,345.29 6,795,860,736.99
Including: Operating income 9,602,759,345.29 6,795,860,736.99
Interest income
Insurance gained
Commission charge and commission income
II. Total operating cost 9,556,489,547.17 7,023,628,758.57
Including: Operating cost 8,177,231,196.17 5,753,849,889.35
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 61,077,730.97 55,304,713.23
Sales expense 984,805,928.94 923,983,428.23
Administrative expense 152,957,426.98 135,469,692.92
R&D expense 186,113,254.21 167,889,148.89
Financial expense -5,695,990.10 -12,868,114.05
Including: Interest expenses 37,292,383.25 45,498,046.65
Interest income 62,433,816.96 74,784,016.69
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CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
Add: Other income 57,250,100.93 54,852,125.20
Investment income (Loss is listed with “-”) 52,533,705.90 7,151,886.26
Including: Investment income on affiliated company and joint -16,047,810.77 209,880.54
venture
The termination of income recognition for financial
assets measured by amortized cost
Exchange income (Loss is listed with “-”)
Net exposure hedging income (Loss is listed with “-”)
Income from change of fair value (Loss is listed with “-”) -9,731,654.29 -9,724,752.12
Loss of credit impairment (Loss is listed with “-”) -15,121,003.89 -22,270,221.19
Losses of devaluation of asset (Loss is listed with “-”) -43,310,366.42 -26,583,248.58
Income from assets disposal (Loss is listed with “-”) -208,978.90 -178,704.98
III. Operating profit (Loss is listed with “-”) 87,681,601.45 -224,520,936.99
Add: Non-operating income 5,862,320.71 3,445,609.21
Less: Non-operating expense 760,592.62 959,554.13
IV. Total profit (Loss is listed with “-”) 92,783,329.54 -222,034,881.91
Less: Income tax expense 37,086,971.38 -2,863,011.42
V. Net profit (Net loss is listed with “-”) 55,696,358.16 -219,171,870.49
(i) Classify by business continuity
1.continuous operating net profit (net loss listed with ‘-”) 55,696,358.16 -219,171,870.49
2.termination of net profit (net loss listed with ‘-”)
(ii) Classify by ownership
1.Net profit attributable to owner’s of parent company 37,157,511.54 -210,130,580.93
2.Minority shareholders’ gains and losses 18,538,846.62 -9,041,289.56
VI. Net after-tax of other comprehensive income -1,257,750.59 -1,009,706.23
Net after-tax of other comprehensive income attributable to owners -1,271,363.35 -630,002.84
of parent company
(I) Other comprehensive income items which will not be
reclassified subsequently to profit of loss
1.Changes of the defined benefit plans that re-measured
2.Other comprehensive income under equity method that
cannot be transfer to gain/loss
3.Change of fair value of investment in other equity
instrument
4.Fair value change of enterprise's credit risk
5. Other
(ii) Other comprehensive income items which will be reclassified -1,271,363.35
-630,002.84
subsequently to profit or loss
1.Other comprehensive income under equity method that -177,046.32
can transfer to gain/loss
2.Change of fair value of other debt investment
3.Amount of financial assets re-classify to other
comprehensive income
4.Credit impairment provision for other debt investment
5.Cash flow hedging reserve
6.Translation differences arising on translation of foreign -1,094,317.03 -630,002.84
currency financial statements
7.Other
Net after-tax of other comprehensive income attributable to minority 13,612.76 -379,703.39
shareholders
VII. Total comprehensive income 54,438,607.57 -220,181,576.72
Total comprehensive income attributable to owners of parent 35,886,148.19 -210,760,583.77
Company
112
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
Total comprehensive income attributable to minority shareholders 18,552,459.38 -9,420,992.95
VIII. Earnings per share:
(i) Basic earnings per share 0.0356 -0.2012
(ii) Diluted earnings per share 0.0356 -0.2012
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 Semi-annual of 2021 Semi-annual of 2020
I. Operating income 3,975,751,904.29 3,213,963,833.18
Less: Operating cost 3,701,614,201.55 3,022,119,390.15
Taxes and surcharge 21,839,365.11 30,342,788.85
Sales expenses 99,271,533.62 110,175,334.78
Administration expenses 56,254,420.78 56,166,016.62
R&D expenses 72,054,454.73 70,182,219.29
Financial expenses -4,429,587.19 -15,767,670.19
Including: Interest expenses 29,845,405.90 37,724,956.37
Interest income 39,962,405.83 62,490,589.12
Add: Other income 36,911,268.50 37,653,498.87
Investment income (Loss is listed with “-”) 37,411,973.74 77,837,668.60
Including: Investment income on affiliated Company and -15,045,065.49 2,738,300.44
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 “-”) -21,631,996.66 -7,780,805.90
Loss of credit impairment (Loss is listed with “-”) -528,447.83 -5,196,835.46
Losses of devaluation of asset (Loss is listed with “-”) -3,955,719.18 -5,212,993.91
Income on disposal of assets (Loss is listed with “-”) -82,639.64 -319,589.42
II. Operating profit (Loss is listed with “-”) 77,271,954.62 37,726,696.46
Add: Non-operating income 2,299,511.52 1,382,900.11
Less: Non-operating expense 288,232.95 -
III. Total Profit (Loss is listed with “-”) 79,283,233.19 39,109,596.57
Less: Income tax 15,578,001.89 -8,461,043.79
IV. Net profit (Net loss is listed with “-”) 63,705,231.30 47,570,640.36
(i) continuous operating net profit (net loss listed with ‘-”) 63,705,231.30 47,570,640.36
(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
113
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
3.Change of fair value of investment in other equity
instrument
4.Fair value change of enterprise's credit risk
5. Other
(ii) Other comprehensive income items which will be
reclassified subsequently to profit or loss
1.Other comprehensive income under equity method that
can transfer to gain/loss
2.Change of fair value of other debt investment
3.Amount of financial assets re-classify to other
comprehensive income
4.Credit impairment provision for other debt investment
5.Cash flow hedging reserve
6.Translation differences arising on translation of foreign
currency financial statements
7.Other
VI. Total comprehensive income 63,705,231.30 47,570,640.36
VII. Earnings per share:
(i) Basic earnings per share 0.0610 0.0455
(ii) Diluted earnings per share 0.0610 0.0455
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 Semi-annual of 2021 Semi-annual of 2020
I. Cash flows arising from operating activities:
Cash received from selling commodities and providing labor services 8,512,320,086.90 6,157,786,632.53
Net increase of customer deposit and interbank deposit
Net increase of loan from central bank
Net increase of capital borrowed from other financial institution
Cash received from original insurance contract fee
Net cash received from reinsurance business
Net increase of insured savings and investment
Cash received from interest, commission charge and commission
Net increase of capital borrowed
Net increase of returned business capital
Net cash received by agents in sale and purchase of securities
Write-back of tax received 316,502,790.54 251,421,150.31
Other cash received concerning operating activities 79,642,427.61 74,202,707.99
Subtotal of cash inflow arising from operating activities 8,908,465,305.05 6,483,410,490.83
Cash paid for purchasing commodities and receiving labor service 7,728,511,418.75 5,671,705,593.94
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
114
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
Cash paid for interest, commission charge and commission
Cash paid for bonus of guarantee slip
Cash paid to/for staff and workers 860,117,506.67 671,140,486.91
Taxes paid 145,836,080.82 122,903,758.87
Other cash paid concerning operating activities 762,496,415.63 405,765,609.52
Subtotal of cash outflow arising from operating activities 9,496,961,421.87 6,871,515,449.24
Net cash flows arising from operating activities -588,496,116.82 -388,104,958.41
II. Cash flows arising from investing activities:
Cash received from recovering investment 700,000,000.00 185,000,000.00
Cash received from investment income 6,856,855.12 10,469,068.45
Net cash received from disposal of fixed, intangible and other long- 1,095,433.16 210,271.10
term assets
Net cash received from disposal of subsidiaries and other units
Other cash received concerning investing activities 138,387,471.00 68,390,962.53
Subtotal of cash inflow from investing activities 846,339,759.28 264,070,302.08
Cash paid for purchasing fixed, intangible and other long-term assets 125,772,890.37 234,361,940.15
Cash paid for investment 1,420,000,000.00 735,280,051.17
Net increase of mortgaged loans
Net cash received from subsidiaries and other units obtained
Other cash paid concerning investing activities 47,506.93 -
Subtotal of cash outflow from investing activities 1,545,820,397.30 969,641,991.32
Net cash flows arising from investing activities -699,480,638.02 -705,571,689.24
III. Cash flows arising from financing activities:
Cash received from absorbing investment 15,000,000.00 -
Including: Cash received from absorbing minority shareholders’ 15,000,000.00 -
investment by subsidiaries
Cash received from loans 934,661,487.16 1,460,006,749.33
Other cash received concerning financing activities 4,675,857.30 -
Subtotal of cash inflow from financing activities 954,337,344.46 1,460,006,749.33
Cash paid for settling debts 1,232,876,410.00 863,778,688.78
Cash paid for dividend and profit distributing or interest paying 66,120,511.52 93,535,991.73
Including: Dividend and profit of minority shareholder paid by 1,598,892.00 4,796,676.00
subsidiaries
Other cash paid concerning financing activities 11,341,697.18 930,211.84
Subtotal of cash outflow from financing activities 1,310,338,618.70 958,244,892.35
Net cash flows arising from financing activities -356,001,274.24 501,761,856.98
IV. Influence on cash and cash equivalents due to fluctuation in exchange -14,000,285.27 -1,424,516.77
rate
V. Net increase of cash and cash equivalents -1,657,978,314.35 -593,339,307.44
Add: Balance of cash and cash equivalents at the period -begin 6,425,529,815.10 5,385,807,475.51
VI. Balance of cash and cash equivalents at the period -end 4,767,551,500.75 4,792,468,168.07
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
115
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
Item Semi-annual of 2021 Semi-annual of 2020
I. Cash flows arising from operating activities:
Cash received from selling commodities and providing labor 3,289,172,496.97 3,141,710,817.95
services
Write-back of tax received 161,887,225.42 107,087,533.56
Other cash received concerning operating activities 52,318,868.30 47,856,925.29
Subtotal of cash inflow arising from operating activities 3,503,378,590.69 3,296,655,276.80
Cash paid for purchasing commodities and receiving labor 3,656,146,099.06 2,941,987,065.27
service
Cash paid to/for staff and workers 234,676,912.75 161,430,366.15
Taxes paid 26,688,550.76 33,476,947.97
Other cash paid concerning operating activities 313,451,006.32 141,140,278.49
Subtotal of cash outflow arising from operating activities 4,230,962,568.89 3,278,034,657.88
Net cash flows arising from operating activities -727,583,978.20 18,620,618.92
II. Cash flows arising from investing activities:
Cash received from recovering investment 700,000,000.00 150,000,000.00
Cash received from investment income 7,992,927.12 78,655,551.41
Net cash received from disposal of fixed, intangible and other 867,706.09 193,300.00
long-term assets
Net cash received from disposal of subsidiaries and other units -
Other cash received concerning investing activities 94,536,857.03 54,966,416.09
Subtotal of cash inflow from investing activities 803,397,490.24 283,815,267.50
Cash paid for purchasing fixed, intangible and other long-term 71,849,222.83 75,044,489.91
assets
Cash paid for investment 1,455,000,000.00 835,280,049.17
Net cash received from subsidiaries and other units obtained -
Other cash paid concerning investing activities 102,662.47 -
Subtotal of cash outflow from investing activities 1,526,951,885.30 910,324,539.08
Net cash flows arising from investing activities -723,554,395.06 -626,509,271.58
III. Cash flows arising from financing activities:
Cash received from absorbing investment
Cash received from loans 924,661,487.16 1,058,647,533.33
Other cash received concerning financing activities 170,670,545.80 9,652,301.36
Subtotal of cash inflow from financing activities 1,095,332,032.96 1,068,299,834.69
Cash paid for settling debts 1,149,699,750.00 614,397,944.82
Cash paid for dividend and profit distributing or interest paying 63,099,086.76 83,234,428.66
Other cash paid concerning financing activities 146,209,276.30 166,648,785.81
Subtotal of cash outflow from financing activities 1,359,008,113.06 864,281,159.29
Net cash flows arising from financing activities -263,676,080.10 204,018,675.40
IV. Influence on cash and cash equivalents due to fluctuation in -5,782,949.41 182,509.41
exchange rate
V. Net increase of cash and cash equivalents -1,720,597,402.77 -403,687,467.85
Add: Balance of cash and cash equivalents at the period -begin 4,597,503,833.78 4,017,400,437.18
VI. Balance of cash and cash equivalents at the period -end 2,876,906,431.01 3,613,712,969.33
Legal Representative: Wu Dinggang
Person in charge of accounting works: Pang Haitao
Person in charge of accounting institute: Yang Jun
116
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
7. Statement of Changes in Owners’ Equity (Consolidated)
Current Amount
In RMB
Semi-annual of 2021
Owners’ equity attributable to the parent Company
Other
equity Re
Pro
instrument as
visi
Item on Minority Total owners’
Pr Perp Less: Other on
abl Othe interests equity
Share capital efe etual Capital reserve Inventory comprehensive Surplus reserve of Retained profit Subtotal
Ot e r
rre capit shares income gen
he res
d al eral
r er
sto secu risk
ve
ck rities
I. The ending balance of 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
1,044,597,881.00 2,683,837,229.12
the previous year
Add: Changes of
accounting policy
Error correction of the
last period
Enterprise combine
under the same control
Other
II. The beginning 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
balance of the current
year
III. Increase/ Decrease in -3,735.20 7,029,141.10 -1,271,363.35 -14,618,909.06 -22,923,148.71 31,953,567.38 9,030,418.67
the period (Decrease is
listed with “-”)
(i) Total comprehensive -1,271,363.35 37,157,511.54 35,886,148.19 18,552,459.38 54,438,607.57
income
(ii) Owners’ devoted and -3,735.20 7,029,141.10 -7,032,876.30 15,000,000.00 7,967,123.70
decreased capital
1.Common shares -3,735.20 7,029,141.10 -7,032,876.30 15,000,000.00 7,967,123.70
117
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
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 -51,776,420.60 -51,776,420.60 -1,598,892.00 -53,375,312.60
1. Withdrawal of surplus
reserves
2. Withdrawal of general -51,776,420.60 -51,776,420.60 -1,598,892.00 -53,375,312.60
risk provisions
3. Distribution for
owners (or 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 plans
5. Carry-over retained
earnings from other
comprehensive income
6. Other
(v) Reasonable reserve
1. Withdrawal in the
report period
118
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
2. Usage in the report
period
(vi) Others
IV. Balance at the end of 1,044,597,881.00 2,683,833,493.92 16,958,477.28 -22,722,447.52 416,364,790.43 726,135,293.17 4,831,250,533.72 139,874,850.87 4,971,125,384.59
the period
Amount of the previous period
In RMB
Semi-annual of 2020
Owners’ equity attributable to the parent Company
Other Re
equity instrument as Prov
Item on ision Minority Total owners’
Perpet Less: Other
abl of Othe interests equity
Share capital Preferr ual Capital reserve Inventor comprehensive Surplus reserve Retained profit Subtotal
Othe e gene r
ed capital y shares income
r res ral
stock securit er risk
ies ve
I. The ending balance 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
of the previous year
Add: Changes of
accounting policy
Error correction of the
last period
Enterprise combine
under the same control
Other
II. The beginning 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
balance of the current
year
III. Increase/ Decrease -559,888.62 -630,002.84 -262,360,474.98 -263,550,366.44 -14,537,831.49 -278,088,197.93
in the period (Decrease
is listed with “-”)
(i) Total comprehensive -630,002.84 -210,130,580.93 -210,760,583.77 -9,420,992.95 -220,181,576.72
income
(ii) Owners’ devoted -559,888.62 -559,888.62 279,839.46 -280,049.16
and decreased capital
119
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
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 -559,888.62 -559,888.62 279,839.46 -280,049.16
(iii) Profit distribution -52,229,894.05 -52,229,894.05 -5,396,678.00 -57,626,572.05
1. Withdrawal of
surplus reserves
2. Withdrawal of
general risk provisions
3. Distribution for -52,229,894.05 -52,229,894.05 -4,796,678.00 -57,026,572.05
owners (or
shareholders)
4. Other -600,000.00 -600,000.00
(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 income
6. Other
(v) Reasonable reserve
120
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
1. Withdrawal in the
report period
2. Usage in the report
period
(vi) Others
IV. Balance at the end 1,044,597,881.00 2,683,806,730.48 -19,561,433.20 410,786,860.20 621,767,268.44 4,741,397,306.92 92,489,207.25 4,833,886,514.17
of the 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)
Current Amount
In RMB
Semi-annual of 2021
Other Other
Item equity instrument Less: Inventory comprehe Reasonabl Total owners’
Share capital Capital reserve Surplus reserve Retained profit Other
Preferred Perpetual capital Othe shares nsive e reserve equity
stock securities r income
I. The ending balance of the 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
previous year
Add: Changes of accounting
policy
Error correction of the last
period
Other
II. The beginning balance of the 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
current year
III. Increase/ Decrease in the -3,735.20 7,029,141.10 11,928,810.70 4,895,934.40
period (Decrease is listed with “-
121
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
”)
(i) Total comprehensive income 63,705,231.30 63,705,231.30
(ii) Owners’ devoted and -3,735.20 7,029,141.10 -7,032,876.30
decreased capital
1.Common shares invested by -3,735.20 7,029,141.10 -7,032,876.30
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 -51,776,420.60 -51,776,420.60
1. Withdrawal of surplus reserves
2. Distribution for owners (or -51,776,420.60 -51,776,420.60
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
income
6. Other
(v) Reasonable reserve
1. Withdrawal in the report period
2. Usage in the report period
(vi) Others
122
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
IV. Balance at the end of the 1,044,597,881.00 2,753,134,052.79 16,958,477.28 416,146,624.75 955,808,150.16 5,152,728,231.42
period
Amount of the previous period
In RMB
Semi-annual of 2020
Other
Other
equity instrument Less:
Item comprehe Reasonabl Total owners’
Share capital Preferr Perpetual Capital reserve Inventory Surplus reserve Retained profit Other
shares nsive e reserve equity
ed capital Other
income
stock securities
I. The ending balance of the previous year 1,044,597,881.00 2,753,017,007.10 410,568,694.52 945,907,861.41 5,154,091,444.03
Add: Changes of accounting policy
Error correction of the last period
Other
II. The beginning balance of the current year 1,044,597,881.00 2,753,017,007.10 410,568,694.52 945,907,861.41 5,154,091,444.03
III. Increase/ Decrease in the period (Decrease -4,659,253.69 -4,659,253.69
is listed with “-”)
(i) Total comprehensive income 47,570,640.36 47,570,640.36
(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 -52,229,894.05 -52,229,894.05
1. Withdrawal of surplus reserves
2. Distribution for owners (or shareholders) -52,229,894.05 -52,229,894.05
3. Other
(iv) Carrying forward internal owners’ equity
1. Capital reserves conversed to capital (share
capital)
123
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
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 period
2. Usage in the report period
(vi) Others
IV. Balance at the end of the period 1,044,597,881.00 2,753,017,007.10 410,568,694.52 941,248,607.72 5,149,432,190.34
Legal Representative: Wu Dinggang
Person in charge of accounting works: Pang Haitao
Person in charge of accounting institute: Yang Jun
124
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise 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 [Wanzhenmi (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 (2007) No.253 Reply on Matters of Hefei Meiling Group Holdings Limited
Transferring Partial State-owned Ownership, Hefei Meiling Group Holdings Limited (hereinafter referred to
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 referred to as Changhong Group),
other 45,000,000 shares to Sichuan Changhong Electric Co. Ltd (hereinafter referred to 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 Hefei 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 signed Agreement on Equity Transfer of Hefei Meiling Co., Ltd
with Sichuan Changhong, in which 32,078,846 tradable A-shares with conditional subscription of the
Company (accounting for 7.76% in total shares) held by Changhong Group. 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.
125
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
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 [ZJXK (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 Shin Wing 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
(LLP).
126
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Ended as 30 June 2021, 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 8,442,922 0.81%
1. State-owned shares
2. State-owned legal person’s shares 1,653,735 0.16%
3. Other domestic shares 5,521,767 0.53%
Including: Domestic legal person’s
3,978,329 0.38%
shares
Domestic natural person’s
1,543,438 0.15%
shares
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 1,036,154,959 99.19%
1. RMB Ordinary shares 874,558,379 83.72%
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): 1,044,597,881 Yuan; 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
with the law can only be operated after approval by relevant departments)
127
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
II. Scope of consolidated financial statement
In the reporting period, the consolidated financial statements of the Company cover 30 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, one new subsidiary
includes in the consolidated financial statement- Anhui Ling'an Medical Equipment Co., Ltd.
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 Business 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
Business 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
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
128
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
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.
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
129
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
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.
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
130
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
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
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
131
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
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
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.
132
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
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
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
133
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
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
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.
Evaluate 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
134
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
(i.e. long-term receivables);
Evaluate 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: The contract
rights of collecting cash flow of the financial assets is terminated; The financial assets has already been
transferred, and the Company has transferred almost all risks and remunerations of financial assets ownership
to the transferee; The financial assets has been transferred, even though the Company has neither
transferred nor kept almost all risks and remunerations of financial assets ownership, the Company has given
up controlling the financial assets.
If the enterprise has neither transferred or kept almost all risks and remunerations of financial assets
ownership, nor given up controlling the financial assets, then confirm the relevant financial assets according
to how it continues to involve into the transferred financial assets and confirm the relevant liabilities
accordingly. The 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
135
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
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
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
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Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
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) Off-set between the financial assets and liabilities
When the Company has a legal right to offset a recognized financial asset and a financial liability and such
legal right is currently enforceable, and the Company plans to settle the financial asset on a net basis or to
realize the financial asset and settle the financial liability simultaneously, the financial asset and the financial
liability are presented in the balance sheet at their respective offsetting amounts. In addition, the financial
assets and financial liabilities are presented in the balance sheet separately, and are not offset against each
other.
(8) Derivatives and embedded derivatives
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
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Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
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
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.
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Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
(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.
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
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Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
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
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
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Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
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
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:
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Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
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
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
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Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
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.
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
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Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
borrowing. Capitalization rate is determined according to weighted average interest rate of common
borrowing.
19. Right-of-use assets and lease liabilities
When the Company becomes the lessee of the lease contract and is entitled to receive almost all the
economic benefits arising from the use of the identified assets during the use period and is entitled to lead the
use of the identified assets during the use period, the leased assets shall be recognized as lease liabilities
according to the present value of the unpaid lease payments after deducting lease incentives (except for short-
term leases and low-value asset leases with simplified treatment), and the right-of-use assets shall be
recognized based on the sum of the present value of lease liabilities, the prepaid rents and the initial direct
expenses, and depreciation and interest expenses shall be recognized respectively. For short-term leases with
no purchase option within one year and lease contracts with a value of less than 40,000 yuan (excluding the
sublease or expected sublease of assets), we choose to follow the simplified treatment and record into the
related asset cost of or current profit and loss in accordance with the straight-line method during the lease
period.
Where both leasing and non-leasing businesses exist in the contract and can be split, financial accounting of
the leasing business shall be carried out according to the leasing standards. Where both leasing and non-
leasing businesses exist in the contract and cannot be split, integrate into the leasing business for financial
accounting according to the leasing standards.
It is necessary to judge whether the lease change can be confirmed as a single lease business, and those
meeting the conditions for confirmation of a single lease shall be confirmed separately. The present value of
lease liabilities shall be reassessed and measured if the single lease business does not meeting the conditions
for confirmation of a single lease or major events or changes within the control of the lessee occur, and adjust
the book value of the right-of-use assets accordingly. If the book value of the right-of-use assets has been
reduced to zero, but the lease liabilities still need to be further reduced, the lessee shall include the remaining
amount into the corresponding expenses of the current period.
When the Company becomes the lessor of a lease contract, the lease shall be divided into operating lease and
financial lease on the commencement date of the lease. Financial lease refers to a lease that substantially
transfers all the risks and rewards associated with the ownership of an asset. Operating lease refers to other
lease except finance lease. The rent of the operating lease is recognized as income during the lease term by
the straight-line method. The net investment of the lease shall be taken as the book value of the finance lease
receivables, and the net investment of the lease is the sum of the unsecured residual value and the present
value of the lease payments not received on the commencement date of the lease period.
20. Intangible assets
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Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
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.
21. Research and development(R&D)
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.
22. 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
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Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
assets group or assets group portfolio where such asset belongs to.
After impairment test, if the carrying value exceeds the recoverable amount of the asset, the balance is
recognized as impairment loss. As long as impairment loss of the aforementioned assets is recognized, it
couldn’t be switched back in later accounting periods. Recoverable amount of assets refers to the higher of
fair value of assets net disposal expense and present value of predicted cash flow of the asset.
Indications for impairment are as follows:
(1) Market value of asset drops a lot in current period, the drop scope is obviously greater than the predicted
drop due to move-on of times or normal utilization;
(2) Economy, technology or law environment where enterprise operates or market where asset is located will
have significant change in current or recent periods, which brings negative influence to enterprise;
(3) Market interest rate or returning rate of other market investments have risen in current period, which
brings influence in calculating discount rate of present value of predicted future cash flow of assets, which
leads to a great drop in recoverable amount of such assets;
(4) Evidence proving that asset is obsolete and out of time or its entity has been damaged;
(5) Asset has been or will be keep aside, terminating utilization or disposed advance;
(6) Internal report of enterprise shows that economic performance of asset has been or will be lower than
prediction, such as that net cash flow created by asset or operation profit (or loss) realized by asset is greatly
lower (or higher) than the predicted amount;
(7) Other indications showing possible impairment of assets
23. 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.
24. 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.
25. Staff remuneration
Employee benefits mainly include all kinds of remuneration incurred in exchange for services rendered by
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Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
employees or compensation to the termination of employment relationship such as short-term wages, post-
employment benefits, compensation for the termination of employment relationship and other long-term
employee welfare.
Short-term remuneration includes: staff salary, bonus, allowances and subsidies, staff benefits, social
insurances like medical insurance, work-related injury insurance and maternity insurance, housing fund,
labor union funds and staff education funds, short-term paid absence of duty, short-term profit sharing
scheme, 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.
26.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.
27. 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.
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Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
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
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;
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Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
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;
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.
28. 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.
29. 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
149
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
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), 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.
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
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
150
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
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
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
151
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
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
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
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Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
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
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.
153
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
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
Content and reasons Approval procedure Note
In 2018, the Ministry of Finance amended the Accounting
Standards for Business Enterprise No.21- Lease, and the Company Relevant change of the accounting policy
implemented the relevant accounting standards in preparing its has been deliberated and approved by the
financial statements for the first half year of 2021 and in 7th session of 10th BOD
accordance with the relevant convergence provisions.
Items and amounts of the statement items materially affected are as follows:
Consolidated balance sheet Balance sheet of parent company
Item affected 2020-12-31 2021-1-1 2020-12-31- 2021-1-1
（before Amount （after （before Amount （after
adjusted adjusted
changed） changed ） changed） changed）
Right-of-use
9,818,834.44 9,818,834.44
assets
Account paid in
30,105,373.40 -35,070.34 30,070,303.06 39,571,728.09 39,571,728.09
advance
Lease liability 4,783,483.43 4,783,483.43
154
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Consolidated balance sheet Balance sheet of parent company
Item affected 2020-12-31 2021-1-1 2020-12-31- 2021-1-1
（before Amount （after （before Amount （after
adjusted adjusted
changed） changed ） changed） changed）
Non-current
liability due 407,825,150.74 5,000,280.67 412,825,431.41 407,141,888.08 407,141,888.08
within one year
(2) Change of significant accounting estimates: N/A
(3) Implementation of the new lease standard for 2021 (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
lease standards exercise on 1 Jan. 2021. Adjust the amount of items related to the financial statements at the
beginning of the year of the first implementation based on the cumulative impact of the first implementation
of the new lease standards, without adjusting the comparable period information. For the operating lease
prior to the first execution date, the Company shall measure the lease liability according to the present value
of remaining lease payments discounted on the basis of the internal resource input interest rate on the first
execution date, and the right-of-use asset shall be adjusted according to the sum of the lease liability and the
prepayment. See index 36 (1) for the specific adjustment details.
(4) There are no retrospective adjustments to prior period data for the implementation of the new lease
standard from 2021 (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%
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
155
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
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 Appliance Co., Ltd. 15%
Sichuan Changhong Air-conditioner Co., Ltd. 15%
Anhui Tuoxing Technology Co., Ltd. 20%
Guangzhou Changhong Trading Co., Ltd 20%
Anhui Lingan Medical Equipment Co., Ltd 20%
Hefei Meiling Wulian Technology 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 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.
(4) 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.
(5) Subsidiary Mianyang Meiling Refrigeration 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.
(6) 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
156
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
years term.
(7) 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.
(8) 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.
(9) 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.
(10) 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.
(11) The subsidiary Anhui Tuoxing Technology Co., Ltd., Anhui Lingan Medical Equipment Co., Ltd., Hefei Meiling Wulian
Technology Co., Ltd., Guangzhou Changhong Trading Co., Ltd. are in compliance with the relevant standards for small and
medium-sized enterprises with meager profits in the “Notice on matters related to the implementation of preferential income
tax policy to support the development of small & medium-size enterprise and individual entrepreneurs” (Guoshui [2021] No. 8)
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 12.5% 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, 2022.
VI. Notes to the major items in the consolidated financial statements
With respect to the financial statements’ figures disclosed below, unless otherwise specified, “period-
beginning” refers to Jan. 1, 2021; “period-end” refers to Jun. 30, 2021; “Current Period” refers to Jan. 1 to
Jun. 30, 2021; “the last period” refers to Jan. 1 to Jun. 30, 2020; the currency is RMB.
1. Monetary fund
Item Ending balance Opening balance
Cash 89,912.16 35,088.07
Bank deposit 4,132,381,613.96 6,100,644,898.32
Other monetary fund 1,169,651,408.13 484,232,497.85
Interest receivable on deposit 8,396,333.53 9,874,305.74
Total 5,310,519,267.78 6,594,786,789.98
Including: total amount deposited in overseas 9,678,300.21 11,293,949.64
Total use of restricted funds 534,571,433.50 159,382,669.14
Other monetary fund:
Item Ending balance
Cash deposit 1,131,829,052.28
B share repurchase 26,606,274.19
Account of foreign currency for verification 10,372,374.03
157
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Item Ending balance
Co-managed account funds 503,933.87
Taobao account 256,846.75
Union Pay online 82,927.01
Total 1,169,651,408.13
Which serves as non cash and cash equivalents refers to the banking acceptance draft deposit with a term of over three months,
amounting to 484,617,499.63 yuan, forward locking deposit 50,000.00 yuan, the amount restricted for used in managed account
was 503,933.87 yuan, bank deposits of 49,300,000.00 yuan frozen due to litigation, China Union Pay, Taobao account and Ten
Pay are all third party payment platforms for the deposit of 100,000.00 yuan and interest receivable from deposits of
8,396,333.53 yuan, the remaining Monetary funds are treated as cash and cash equivalents.
Parts 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. Trading financial assets
Item Ending balance Opening balance
Financial assets measured at fair value and whose changes are included
755,672,778.49 47,242,339.07
in current gains/losses
Including: Derivative financial assets 28,746,156.57 47,242,339.07
Principal and interest of wealth management products 726,926,621.92
Trading financial assets refer to the RMB forward exchange fund in Current Period
3. Note receivable
(1) Category of note receivable
Item Ending balance Opening balance
Bank acceptance 110,365,130.06 13,023,329.01
Trade acceptance 123,550,518.22 335,880,000.00
Total 233,915,648.28 348,903,329.01
Less: bad debt provision 7,935,065.79 8,481,942.30
Book value 225,980,582.49 340,421,386.71
(2) Notes endorsement or discount and undue on balance sheet date
Amount derecognition at Amount without
Item
period-end derecognition at period-end
Bank acceptance 16,158,165.85
Trade acceptance
Total 16,158,165.85
(3) Notes transfer to account receivable due for failure implementation by drawer at period-end
158
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Item Amount of accounts receivable transferred at period-end
Trade acceptance 14,460,000.00
Total 14,460,000.00
(4) By accrual of bad debt provision
Ending balance
Category Book balance Bad debt provision
Book value
Amount Ratio Amount Ratio
With bad debt provision
110,365,130.06 47.18% 300,000.00 0.27% 110,065,130.06
accrual on single item
Including: bank acceptance 110,365,130.06 47.18% 300,000.00 0.27% 110,065,130.06
With bad debt provision
123,550,518.22 52.82% 7,635,065.79 6.18% 115,915,452.43
accrual on portfolio
Including: trade acceptance 123,550,518.22 52.82% 7,635,065.79 6.18% 115,915,452.43
Total 233,915,648.28 100.00% 7,935,065.79 3.39% 225,980,582.49
(Continued)
Opening balance
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
Total 348,903,329.01 100.00% 8,481,942.30 2.43% 340,421,386.71
1) Note receivable withdrawal bad debt provision on single item
Ending balance
Name Bad debt Provision ratio
Book balance Provision reason
provision (%)
Bank acceptance Minimal risk, holding maturity
110,065,130.06
acceptance
Bank acceptance The bill has been collected by
300,000.00 300,000.00 100%
the bank
Total 110,365,130.06 300,000.00 — —
2) Note receivable withdrawal bad debt provision by combination
Account age Ending balance
159
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Note receivable Bad debt provision Provision ratio
Within 3 months (3 months included) 57,741,309.81 577,413.10 1.00%
More than 3 months and less than 6 months
61,041,889.96 6,104,189.00 10.00%
(6 months included)
More than 6 months and less than 1 year (1
4,767,318.45 953,463.69 20.00%
year included)
Total 123,550,518.22 7,635,065.79 —
(5) Bad debt provision of note receivable that has been accrued, withdrawn, and reversed this period
Changes this period
Category Opening balance Withdrawal or Ending balance
Accrual Write-off Other
reversal
Bad debt
8,481,942.30 -546,876.51 7,935,065.79
provision
Total 8,481,942.30 -546,876.51 7,935,065.79
(6) No note receivable actually written off in this period.
4. Account receivable
(1) Category of account receivable by bad debt accrual
Ending balance
Category Book balance Bad debt provision
Book value
Amount Ratio Amount Ratio
Account receivable that withdrawal
1,606,637,512.84 61.00% 24,560,360.79 1.53% 1,582,077,152.05
bad debt provision by single item
Including: current payment with related
1,411,296,917.53 53.58% 2,840,923.40 0.20% 1,408,455,994.13
party
Account receivable with letter of
173,621,157.92 6.60% 173,621,157.92
credit
Account receivable with single
100.00
minor amount but withdrawal single item 21,719,437.39 0.82% 21,719,437.39
%
bad debt provision
Account receivable withdrawal bad
1,027,276,092.39 39.00% 63,294,173.26 6.16% 963,981,919.13
debt provision by portfolio
Including: account receivable of
189,055,930.27 7.18% 13,940,083.40 7.37% 175,115,846.87
engineering customers
Receivables other than engineering
838,220,162.12 31.82% 49,354,089.86 5.89% 788,866,072.26
customers
Total 2,633,913,605.23 100.00% 87,854,534.05 3.34% 2,546,059,071.18
(Continued)
Opening balance
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
160
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Opening balance
Category Book balance Bad debt provision
Book value
Amount Ratio Amount Ratio
party
Account receivable with letter of
72,037,362.43 5.99% 72,037,362.43
credit
Account receivable with single
minor amount but withdrawal single item 53,596,759.73 4.46% 21,962,411.11 40.98% 31,634,348.62
bad 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 1,202,486,850.04 100.0% 72,211,069.38 6.01% 1,130,275,780.66
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
receivables, 75 clients involved.
2) Account receivable withdrawal bad debt provision by portfolio
A. Account receivable of engineering customers
Ending balance
Account age Bad debt
Book balance Provision ratio (%)
provision
Within 3 months (3 months included) 47,284,652.60
More than 3 months and less than 6 months (6
41,097,523.45
months included)
Over 6 months and within one year (One year
50,196,962.50
included)
Over one year - within 2 years (2 years included) 37,745,416.52 7,549,083.30 20.00%
Over 2 years - within 3 years (3 years included) 12,680,750.20 6,340,375.10 50.00%
Over 3 years 50,625.00 50,625.00 100.00%
Total 189,055,930.27 13,940,083.40 —
B. Receivables other than engineering customers
Account age Ending balance
161
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Bad debt
Book balance Provision ratio (%)
provision
Within 3 months (3 months included) 689,829,531.85 6,898,295.32 1.00%
More than 3 months and less than 6 months (6
72,215,232.06 7,221,523.21 10.00%
months included)
Over 6 months and within one year (One year
35,958,453.69 7,191,690.74 20.00%
included)
Over one year - within 2 years (2 years included) 19,154,913.13 9,577,456.57 50.00%
Over 2 years - within 3 years (3 years included) 12,984,536.83 10,387,629.46 80.00%
Over 3 years 8,077,494.56 8,077,494.56 100.00%
Total 838,220,162.12 49,354,089.86 —
(2) By account age
Account age Ending balance
Within 3 months (3 months included) 2,168,300,692.76
More than 3 months and less than 6 months (6 months
247,107,189.16
included)
Over 6 months and within one year (One year
97,272,963.59
included)
Over one year - within 2 years (2 years included) 67,934,834.51
Over 2 years - within 3 years (3 years included) 34,874,653.00
Over 3 years 18,423,272.21
Total 2,633,913,605.23
(3) Bad debt provision of accounts receivable this period
Changes this period
Category Opening balance Withdrawal or Ending balance
Accrual Write-off Other
reversal
Bad debt
72,211,069.38 16,898,006.47 1,228,611.25 25,930.55 87,854,534.05
provision
Total 72,211,069.38 16,898,006.47 1,228,611.25 25,930.55 87,854,534.05
(4) Account receivable actually written-off in Current Period: nil
(5) Pledge of accounts receivable at period-end: nil.
(6) Top five receivables collected by arrears party amounting to 1,719,453,354.68 yuan in total, accounted
162
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
for 65.28% of the receivables of Current Period-end, the bad debt provision accrual correspondingly
amounting to 20,824,326.64 yuan at period-end balance.
(7) No account receivable terminated recognition due to the transfer of financial assets
(8) No assets and liability transfer account receivable and continues to involve
5. Receivables financing
Item Ending balance Opening balance
Bank acceptance 1,132,467,568.98 1,632,388,702.83
Total 1,132,467,568.98 1,632,388,702.83
(1) Notes receivable already pledged that presented in receivables financing at the end of the period:
Item Amount pledged at period-end
Bank acceptance 440,912,836.95
Total 440,912,836.95
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. 59. Assets with restricted ownership or
use rights.
(2) Notes endorsement or discount and undue on balance sheet date at the end of the period
Amount derecognition at Amount without
Item
period-end derecognition at period-end
Bank acceptance 935,633,106.18
Total 935,633,106.18
6. Accounts paid in advance
(1) Age of account paid in advance
Ending balance Opening balance
Item
Amount Ratio （%） Amount Ratio （%）
Within one year 50,782,544.26 93.62% 29,388,065.57 97.73%
1-2 years 3,375,859.72 6.22% 393,517.42 1.31%
2-3 years 33,482.30 0.06% 25,000.00 0.08%
Over 3 years 54,314.62 0.10% 263,720.07 0.88%
Total 54,246,200.90 100.00% 30,070,303.06 100.00%
(2) Top 5 of account paid in advance in balance at period-end amounting to 39,328,333.92 yuan, accounted
for 72.50% of the account.
163
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
7. Other account receivable
Item Ending balance Opening balance
Other account receivable 119,579,871.70 145,705,978.26
Total 119,579,871.70 145,705,978.26
(1) Category of other account receivable
Nature Book balance at period-end Book balance at period-begin
Export rebate 33,524,889.53 32,281,664.19
Cash deposit 70,998,962.91 77,754,290.83
Loans of employee’s pretty cash 13,624,640.82 14,876,565.98
Related party not in consolidation statement 2,057,893.47 3,241,296.82
Advance money temporary 44,868.93 65,938.41
Other 216,853.56 18,375,974.37
Total 120,468,109.22 146,595,730.60
(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. 2021 839,752.34 50,000.00 889,752.34
Book balance of other account
receivable in Current Period as — — — —
at 30 Jun. 2021
--Transfer to the second stage
-- Transfer to the third stage
-- Reversal to the second stage
-- Reversal to the first stage
Provision in Current Period -1,514.82 -1,514.82
Reversal in Current Period
Conversion in Current Period
Write off in Current Period
Other change
Balance as at 30 Jun. 2021 838,237.52 50,000.00 888,237.52
164
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
(3) By account age
Account age Ending balance
Within 3 months (3 months included) 57,004,480.08
More than 3 months and less than 6 months (6 months
3,577,905.93
included)
Over 6 months and within one year (One year
28,852,257.97
included)
Over one year - within 2 years (2 years included) 24,668,597.60
Over 2 years - within 3 years (3 years included) 2,048,710.92
Over 3 years 4,316,156.72
Total 120,468,109.22
(4) Top 5 other receivables collected by arrears party at balance of period-end:
Proportion in total Ending
Name Nature Ending balance Account age other receivables balance of bad
ending balance debt provision
SAT of Hefei Economic &
Within 3
Technological Development Tax rebate 32,398,824.33 26.89%
months
Zone
Development & Reform Over 6 months
Bureau of Qingyuan District, Cash deposit 16,400,000.00 and within one 13.61%
Baoding City year
Office of the lading group More than 3
for construction of new months and
Cash deposit 8,780,849.40 7.29%
socialist countryside in less than 6
Shunyi District months
Within 3
Housing and Urban-Rural months & more
Development Bureau in Cash deposit 5,862,175.00 than 6 months 4.87%
Anxin County and within 1
year
Housing and Urban-Rural Over 6 months
Development Bureau in Cash deposit 3,319,800.00 and within one 2.76%
Anguo City year
Total — 66,761,648.73 — 55.42%
(5) No other account receivable involved government subsidies
(6) No other receivables terminated recognition due to the transfer of financial assets
(7) No assets and liability transfer other receivables and continues to involve
8. Inventories
(1) Classification of inventories
165
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Ending balance
Inventory price decline
Item provision/contract
Book balance Book value
performance cost
impairment provision
Raw materials 210,601,097.48 8,902,221.77 201,698,875.71
Stock commodities 1,396,193,629.54 81,229,282.34 1,314,964,347.20
Low value consumable articles 4,662,174.09 918,669.46 3,743,504.63
Goods in transit 630,696,166.92 20,320,371.32 610,375,795.60
Goods-in-process 14,545,773.24 14,545,773.24
Contract performance cost 94,330,091.14 82,985.99 94,247,105.15
Deferred expense for mould 45,913,383.53 45,913,383.53
Total 2,396,942,315.94 111,453,530.88 2,285,488,785.06
(Continued)
Opening balance
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
(2) Provision for inventory depreciation and contract performance cost impairment provision
Increase this period Decrease this period
Item Opening balance Reversal or Ending balance
Accrual Other Other
reselling
Raw materials 9,729,874.26 1,203,327.85 2,030,980.34 8,902,221.77
Stock
73,930,262.61 28,449,893.23 21,150,873.50 81,229,282.34
commodities
Goods in transit 9,702,391.49 13,649,336.15 3,031,356.32 20,320,371.32
Low value
consumable 916,206.67 4,603.21 2,140.42 918,669.46
articles
Contract
performance 97,462.80 3,205.98 17,682.79 82,985.99
cost
Total 94,376,197.83 43,310,366.42 26,233,033.37 111,453,530.88
(8) Accrual for inventory falling price reserves
166
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Reasons for the reversal or
Item Specific basis for determining of net realizable value
reselling in Current Period
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 Ending balance Opening balance
Value-added tax to be deducted 198,735,885.46 181,882,278.05
Advance payment of income tax 2,898,546.47 9,506,261.78
Contract acquisition cost 13,584,231.77 4,511,132.31
Other unamortized expenses 4,120,927.62 2,453,792.84
Total 219,339,591.32 198,353,464.98
167
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
10. Long-term equity investment
Changes in Current Period
Ending
Other Other balance
Opening Additio Provisi Ending
Invested enterprise Investment profit comprehen chang Declaration of of
balance nal Disinve on for Othe balance
and loss confirmed sive es of cash dividends impair
investm stment impair r
by equity method income equit or profits ment
ent ment
adjustment y
Associated companies
1.Hefei Xingmei Assets Management Co.,
6,826,274.99 -467,024.04 6,359,250.95
Ltd.
2.Sichuan Zhiyijia Network Technology
39,163,339.54 -16,208,022.33 22,955,317.21
Co., Ltd. note 1
3.Hongyuan Ground Energy Heat Tech.
22,103,109.57 -924,784.75 21,178,324.82
Co., Ltd. note 2
4.Sichuan Tianyou Guigu Technology
2,850,091.51 -56,544.01 2,793,547.50
Co., Ltd. note 3
5.Chengdu Guigu Environmental Tech.
6,040,006.77 -245,929.49 5,794,077.28
Co., Ltd. note 4
6.ChanghongRuba
236,565.85 -236,565.85
ElectricCompany(Private)Ltd. note 5
7.Hefei Meiling Solar Energy Technology
1,617,928.00 1,617,928.00
Co., Ltd. note 6
Total 76,982,822.38 -16,047,810.77 -236,565.85 1,617,928.00 59,080,517.76
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
Zhiyijia with shareholding ratio up to 50%.
168
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
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. In November 2015, Jiangsu Runye Investment Co., Ltd. transferred all its 10% shares to Sichuan Shuye Jiachen Real Estate
Development Co., Ltd.;Chengdu Dongyu Shangmao Co., Ltd made capital contribution of 15 million yuan, accounting for 15% of the registered capital. In November 2015, Chengdu Dongyu
Shangmao Co., Ltd. transferred all its 15% shares to Chengdu Dongyu No. 1 Enterprise Management Consulting Partnership (Limited Partnership). 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,
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
169
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
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 10 million yuan. Subsidiary Hefei Meiling Group Holdings Limited
invested 3.1114 million yuan, accounting for 31.114% of the registered capital; Hefei Huayi Investment Co., Ltd. invested 4.972 million yuan, accounting for 49.72% of the registered capital;
Hefei Xingtai Asset Management Co., Ltd. invested 1.9166 million yuan, accounting for 19.166% of the registered capital.
170
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
11. Other non-current financial assets
Item Ending balance Opening balance
Sichuan Changhong Group Finance Co., Ltd. 500,000,000.00 500,000,000.00
Huishang Bank Co., Ltd. 5,000,000.00 5,000,000.00
Hongyun Fund 43,148,931.34 43,148,931.34
Total 548,148,931.34 548,148,931.34
12. Investment real estate
(1) Investment real estate measured at costs
Item House and buildings Total
I. Original book value
1.Opening balance 59,512,503.29 59,512,503.29
2.Increase this period 1,176,028.81 1,176,028.81
(1) Construction inprogresstransfer-in 1,176,028.81 1,176,028.81
3.Decrease this period
4.Ending balance 60,688,532.10 60,688,532.10
II. Accumulated depreciation and
accumulated amortization
1.Opening balance 5,624,041.29 5,624,041.29
2.Increase this period 955,807.64 955,807.64
(1) Provision or amortization 955,807.64 955,807.64
3.Decrease this period
4.Ending balance 6,579,848.93 6,579,848.93
III. Impairment loss
IV. Book value
1. Ending book value 54,108,683.17 54,108,683.17
2. Opening book value 53,888,462.00 53,888,462.00
(2) No investment real estate measured by fair value at period-end.
(3) Particular about mortgage of investment property at period-end
Accumulated Impairment
Name Original book value Book value
depreciation provision
House and buildings 5,795,017.72 2,245,626.65 3,549,391.07
(4) Investment real estate without property certification held
Reasons for failing to complete
Item Book value
property rights certificate
171
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Reasons for failing to complete
Item Book value
property rights certificate
J04workshop 29,092,598.29 Related property rights in procedure
J03workshop 18,676,006.90 Related property rights in procedure
J20 air compressor station workshop 1,234,175.06 Related property rights in procedure
J18 opening and closing office 571,364.79 Related property rights in procedure
Total 49,574,145.04
13. Fixed assets
Item Book value at period-end Book value at period-begin
Fixed assets 2,274,347,136.21 2,315,983,923.20
Disposal of fixed assets 75,875,517.11 75,875,517.11
Total 2,350,222,653.32 2,391,859,440.31
13.1 Fixed assets
(1) Fixed assets
Transport
Item House and buildings Machinery equipment Otherequipment Total
equipment
I. Originalbookvalue
1.Opening balance 1,662,291,191.07 1,728,214,888.97 34,401,220.30 203,184,998.75 3,628,092,299.09
2.Increasethis period 16,222,356.11 42,413,051.09 736,494.32 12,036,823.15 71,408,724.67
(1) Purchase 970,178.52 256,382.11 7,660,875.18 8,887,435.81
(2) Construction in
16,222,356.11 41,442,872.57 474,920.37 4,318,988.62 62,459,137.67
progresstransfer-in
(3) Inventory transfer in
48,681.99 48,681.99
forown use
(4) Increase in exchange
5,191.84 8,277.36 13,469.20
ratechanges
3.Decreasethisperiod 150,207.09 28,533,499.04 235,135.32 3,086,722.77 32,005,564.22
(1) Dispose or
24,715,265.82 235,135.32 3,086,722.77 28,037,123.91
retirement
(2) Transfer to
construction in 3,813,978.57 3,813,978.57
progress
(3) Temporary estimated
150,207.09 4,254.65 154,461.74
decrease
4.Ending balance 1,678,363,340.09 1,742,094,441.02 34,902,579.30 212,135,099.13 3,667,495,459.54
II. Accumulated
depreciation
1.Opening balance 351,313,535.78 856,306,300.29 19,765,302.96 82,704,782.54 1,310,089,921.57
2.Increasethis period 26,579,485.84 71,541,140.97 1,469,541.61 8,334,487.98 107,924,656.40
（1）Accrual 26,579,485.84 71,541,140.97 1,427,410.94 8,328,445.82 107,876,483.57
172
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Transport
Item House and buildings Machinery equipment Otherequipment Total
equipment
(2) Increase in exchange
42,130.67 6,042.16 48,172.83
ratechanges
3.Decreasethisperiod 23,684,040.00 141,102.29 2,442,688.84 26,267,831.13
(1) Dispose or
22,745,983.28 141,102.29 2,442,688.84 25,329,774.41
retirement
(2) Transfer to
construction in 938,056.72 938,056.72
progress
4.Ending balance 377,893,021.62 904,163,401.26 21,093,742.28 88,596,581.68 1,391,746,746.84
III. Impairment loss
1.Opening balance 1,877,839.70 140,614.62 2,018,454.32
2.Increasethis period
3.Decreasethisperiod 616,877.83 616,877.83
(1) Dispose or
616,877.83 616,877.83
retirement
4.Ending balance 1,260,961.87 140,614.62 1,401,576.49
IV Bookvalue
1. Ending bookvalue 1,300,470,318.47 836,670,077.89 13,808,837.02 123,397,902.83 2,274,347,136.21
2. Opening bookvalue 1,310,977,655.29 870,030,748.98 14,635,917.34 120,339,601.59 2,315,983,923.20
The new fixed assets in this period mainly due to the 62,459,137.67 yuan transfer from construction in
process; decrease of the fixed assets in Current Period mainly including assets dispose for retirement.
(2) No fixed assets temporary idle at period-end.
(3) Fixed assets for collateral at period-end
Accumulated Impairment
Name Original book value Book value
depreciation provision
House and buildings 474,545,282.09 117,160,334.15 357,384,947.94
(4) No fixed assets leased through financing lease at period-end
(5) Fixed assets leased through operating lease at period-end
Accumulated Impairment
Item Original book value Book value
depreciation provision
House and buildings 42,544,605.32 10,253,003.46 32,291,601.86
Machinery
34,009,099.62 10,362,209.40 23,646,890.22
equipment
Other equipment 3,152,980.30 1,321,152.50 1,831,827.80
Total 79,706,685.24 21,936,365.36 57,770,319.88
173
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
(6) Fixed assets without property certificate
Reason of not complete
Item Book value
the property certificate
4# makeshift shelter Related property rights in
4,597,552.10
procedure
II section canteen of living area Related property rights in
21,026,734.32
procedure
Related property rights in
Testing and experiment center building 39,263,160.93
procedure
Related property rights in
Refrigerator packaging, sorting, storage and transportation center 53,776,614.52
procedure
Related property rights in
Outsourcing workshop 13,505,765.84
procedure
Related property rights in
J01 workshop 28,514,098.92
procedure
Related property rights in
J02 workshop 30,763,846.28
procedure
Related property rights in
J05 evaporator and condenser workshop 26,828,625.32
procedure
Related property rights in
J06 central air-conditioner workshop 17,329,252.30
procedure
J07 electrical workshop Related property rights in
34,265,486.52
procedure
Related property rights in
J08 packing materials warehouse 4,489,884.40
procedure
Related property rights in
J09raw material warehouse 6,174,515.26
procedure
Related property rights in
J10raw material warehouse 4,823,660.24
procedure
Related property rights in
J11raw material warehouse 4,737,640.55
procedure
J15 house of refrigerant forklift Related property rights in
1,303,436.25
procedure
J16 chemical storage Related property rights in
1,170,502.00
procedure
J17 chemical storage Related property rights in
1,280,067.04
procedure
J19 main guard room Related property rights in
321,752.38
procedure
Related property rights in
J19a guard room 203,212.53
procedure
Related property rights in
J19d guard room 148,637.11
procedure
Related property rights in
J19e guard room 148,637.11
procedure
Related property rights in
J50 finished product warehouse 16,365,982.26
procedure
Related property rights in
J51 finished product warehouse 15,839,703.21
procedure
Related property rights in
J52 finished product warehouse 11,301,945.86
procedure
Related property rights in
J53 finished product warehouse 12,173,080.55
procedure
174
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Reason of not complete
Item Book value
the property certificate
Related property rights in
J54 finished product warehouse 11,320,928.79
procedure
Related property rights in
J55 finished product warehouse 10,370,030.58
procedure
Related property rights in
J56 finished product warehouse 10,370,030.58
procedure
Total 382,414,783.75
(7) No fixed assets held for sale at period-end
13.2 Disposal of fixed assets
Reasons for disposal
Item Ending balance Opening balance
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 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 period-end.
14. Construction in progress
Item Ending balance Opening balance
Construction in progress 70,466,482.26 60,775,088.96
175
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Total 70,466,482.26 60,775,088.96
(1) Details of construction in progress
Ending balance Opening balance
Impai Impair
Item rment ment
Bookbalance Bookvalue Bookbalance Bookvalue
provis provisi
ion on
Overseas product
upgrade supporting box
shell line, door shell line
11,603,740.95 11,603,740.95 9,837,906.27 9,837,906.27
and some old product
competitiveness
improvement projects
Front-end expansion
project of Hefei base
with an annual output of 8,156,676.12 8,156,676.12 1,304,336.29 1,304,336.29
10 million refrigerator
cabinets
Meiling Living Area
Apartment Renovation 5,952,142.98 5,952,142.98 3,587,155.98 3,587,155.98
Project
Changhong Air
Conditioner- relocation
2,789,062.21 2,789,062.21 2,942,756.39 2,942,756.39
of production base and
upgrading & expansion
Construction of washing
2,511,504.38 2,511,504.38 3,097,203.54 3,097,203.54
machine plant
Zhongke Meiling ultra-low
temperature refrigerated 2,347,522.10 2,347,522.10
storage equipment
expansion project
2021 efficiency
improvement project of
2,003,938.07 2,003,938.07
large refrigerator
manufacturing plant
Project of the application
of MES system during 1,993,134.07 1,993,134.07 1,670,775.59 1,670,775.59
manufacturing
Planning and
Reconstruction Project of
1,542,167.91 1,542,167.91
Overseas Refrigerator
Manufacturing Plants
Aluminum tube continuous
1,345,132.74 1,345,132.74
extrusion production line
Meiling PLM Project 1,132,593.09 1,132,593.09
Fire-fighting facility
1,109,713.12 1,109,713.12
upgrade project
Technical transformation
project of Zhongshan 985,492.22 985,492.22 6,926,902.64 6,926,902.64
Changhong
Production efficiency
improvement project of 904,741.38 904,741.38 904,741.38 904,741.38
the Line C for the
176
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Ending balance Opening balance
Impai Impair
Item rment ment
Bookbalance Bookvalue Bookbalance Bookvalue
provis provisi
ion on
overseas Refrigerator
Manufacture Company
Overseas inflated
evaporator products
704,143.91 704,143.91 685,133.49 685,133.49
transferred to Jiangxi
base production project
Industrial Internet
Changhong Meiling 673,336.60 673,336.60
Promotion Project
Equipment to be
476,783.77 476,783.77 386,124.34 386,124.34
installed
Construction of
laboratory 451,434.75 451,434.75 1,623,019.14 1,623,019.14
(inspection center)
Capacity enlargement
and technology
improvement project for 423,005.50 423,005.50 1,724,400.82 1,724,400.82
Air-conditioner
Company
The fourth-phase
unmanned vending
machine and large-volume
commercial cabinet 60,679.61 60,679.61 4,049,896.54 4,049,896.54
production line project of
the freezer manufacturing
company
New overseas case
2,404,757.10 2,404,757.10
molding line project
Other petty projects 23,299,536.78 23,299,536.78 19,629,979.45 19,629,979.45
Total 70,466,482.26 70,466,482.26 60,775,088.96 60,775,088.96
(2) Changes in significant construction in progress
Transfer to
Increase in fixed assets in
Book balance Other decrease Book balance Source of
Projects Current
at period-begin Current at period-end funds
Period
Period
Construction of Self-
washing machine 3,097,203.54 2,634,420.54 3,220,119.70 2,511,504.38 raised/
plant Raise
Construction of
laboratory
1,623,019.14 863,813.82 2,035,398.21 451,434.75 Raise
(inspection center
)
Changhong Air
Conditioner- Self-
relocation of 2,942,756.39 6,318,282.03 6,471,976.21 2,789,062.21
raised
production base
and upgrading &
177
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Transfer to
Increase in fixed assets in
Book balance Other decrease Book balance Source of
Projects Current
at period-begin Current at period-end funds
Period
Period
expansion
(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
Period Period
Construction of washing
machine plant 37,121.00 99.30% 99%
Construction of laboratory
10,748.00 86.77% 99%
(inspection center)
Changhong Air
Conditioner- relocation of
84,791.01 88.63% 99% 2,570,143.02
production base and
upgrading & expansion
15. Right-of-use assets
Item House building Total
I. Original book value
1.Opening balance 9,818,834.44 9,818,834.44
2.Increase this period 13,760,631.85 13,760,631.85
(1) Rent in 13,760,631.85 13,760,631.85
3.Decrease this period
4.Ending balance 23,579,466.29 23,579,466.29
II. Accumulated depreciation
1.Opening balance
2.Increase this period 3,296,977.97 3,296,977.97
(1) Accrual 3,296,977.97 3,296,977.97
3.Decrease this period
4.Ending balance 3,296,977.97 3,296,977.97
III. Provision for impairment
1.Opening balance
2.Increase this period
3.Decrease this period
4.Ending balance
IV. Book value
1. Ending book value 20,282,488.32 20,282,488.32
2. Opening book value 9,818,834.44 9,818,834.44
178
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
16. Intangible assets
(1) Intangible assets
Trademark Non-patent
Item Land use right Other Total
special right technology
I. Original book
value
1.Opening
869,724,297.57 283,292,439.34 532,983,550.68 61,676,492.32 1,747,676,779.91
balance
2.Increase this
29,041,182.12 32,198,081.53 61,239,263.65
period
(1) Internal
29,041,182.12 32,198,081.53 61,239,263.65
research
3.Decrease this
50,638,109.51 50,638,109.51
period
(1) Disposal 50,638,109.51 50,638,109.51
4.Ending balance 869,724,297.57 283,292,439.34 511,386,623.29 93,874,573.85 1,758,277,934.05
II. Accumulated
amortization
1.Opening
179,982,060.86 283,292,439.34 308,164,231.17 8,457,055.13 779,895,786.50
balance
2.Increase this
9,245,939.53 52,900,516.90 8,329,036.60 70,475,493.03
period
（1）Accrual 9,245,939.53 52,900,516.90 8,329,036.60 70,475,493.03
3.Decrease this
40,262,970.64 40,262,970.64
period
(1) Disposal 40,262,970.64 40,262,970.64
4.Ending balance 189,228,000.39 283,292,439.34 320,801,777.43 16,786,091.73 810,108,308.89
III. Provision for
impairment
1.Opening
26,420,977.43 4,508,495.33 30,929,472.76
balance
2.Increase this
period
3.Decrease this
10,375,138.87 10,375,138.87
period
(1) Disposal 10,375,138.87 10,375,138.87
4.Ending balance 16,045,838.56 4,508,495.33 20,554,333.89
IV. Book value
1. Ending book
680,496,297.18 174,539,007.30 72,579,986.79 927,615,291.27
value
2. Opening book
689,742,236.71 198,398,342.08 48,710,941.86 936,851,520.65
value
The intangible assets resulted from internal research takes 3.48% of the balance of intangible assets at
period-end
(2) No land use right without property certification done at period-end
179
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
(3) Up to end of the Period, 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 17,377,492.85
right
Wan (2019) Property right of Hefei No.:
Land use 1148244/1148249/1148243/1148240/1148248/11482
477,550.03 236,186,360.68
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 13,370,649.71
right 0061435/0061445
Wan (2019) Property right of Feixi County No.:
Land use
0061456/0061447/0061438/0061440/0061452/0061 82,850.51 18,413,709.09
right
450/0061430/0061657
Total 620,903.86 285,348,212.33
17. Development expense
Increase this period Decrease this period
Internal Included in Ending
Item Opening balance Confirmed as
development Oth current profits Oth balance
er intangible assets er
expenditure and losses
Technology
development 27,997,731.79 49,312,977.31 48,735.48 49,678,127.46 27,583,846.16
for Air-conditioner
Technology
development 45,030,709.77 35,276,613.99 11,561,136.19 68,746,187.57
for refrigerator
Total 73,028,441.56 84,589,591.30 48,735.48 61,239,263.65 96,330,033.73
18. Goodwill
(1) Original value of goodwill
Increase this period Decrease this period
Formatio Formatio
Invested enterprise Opening n from n from Ending balance
balance Other Other
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
Invested enterprise Opening Increase this Ending
Decrease this period
balance period balance
180
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Accrual Other Accrual Other
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 period-end.
19. Deferred income tax assets
(1) Deferred income tax assets without the offset
Ending balance Opening balance
Deductible Deferred Deductible Deferred
Item
temporary income tax temporary income tax
difference assets difference assets
Deferred income tax assets recognized
124,677,573.63 18,701,636.02 122,853,362.96 18,427,787.28
from assets impairment
Deferred income tax assets recognized
23,102,517.39 3,465,377.61 55,035,910.31 8,255,386.55
from accrual liability
Deferred income tax assets recognized
11,752,793.14 1,762,918.97 13,326,014.64 1,998,902.20
from Dismission welfare
Deferred income tax assets recognized
101,553,424.88 15,233,013.73 107,392,156.36 16,108,823.46
from deferred income
Deferred income tax assets recognized from ir-
452,903,790.07 67,931,658.90 545,833,222.08 81,874,983.31
reparable losses
Accrued income tax assets 4,290,952.45 643,642.87 3,467,314.27 520,097.14
Total 718,281,051.56 107,738,248.10 847,907,980.62 127,185,979.94
The Company’s long-term equity investment impairment provisions are the investments in its subsidiary 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
Ending balance Opening balance
Item Taxable Deferred Taxable Deferred
temporary income tax temporary income tax
differences liability differences liability
Recognized by fixed assets depreciation 27,081,715.20 4,062,257.28 29,817,828.77 4,472,674.32
Recognized by changes in fair value 19,054,056.75 2,858,108.51 40,686,053.41 6,102,908.01
Total 46,135,771.95 6,920,365.79 70,503,882.18 10,575,582.33
181
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
(3) Details of unrecognized deferred income tax assets
Item Ending balance Opening balance
Deductible temporary difference 134,821,799.40 110,167,308.91
Deductible loss 941,947,487.33 880,692,110.28
Total 1,076,769,286.73 990,859,419.19
20. Short-term loans
Category Ending balance Opening balance
Loan in pledge 259,984,823.95 100,000,000.00
Guaranteed loan 23,160,000.00 66,180,000.00
Loan in credit 583,901,500.00 904,237,500.00
Bill financing 257,880,000.00
Interest payable 2,236,871.73 7,911,550.55
Total 869,283,195.68 1,336,209,050.55
Short-term loans at Current Period-end:
1) 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.
2) The Company entered into a Forfaiting Business Contract with Anhui Branch of Bank of Communications Co., Ltd.
with 237 days in term. Term of borrowing is from 30 Mar. 2021 to 22 Nov. 2021. Fixed annual interest rate of 3.40%,
the loan amount is 59,984,823.95 Yuan.
3) 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.
4) The Company entered into a Loan Contract with Hefei Luyang Branch of Hangzhou Bank Co., Ltd. with 362 days in
term. Term of borrowing is from 4 Mar. 2021 to 1 Mar. 2022. Fixed annual interest rate of 3.45%, the loan amount is
30,000,000.00 Yuan.
5) The Company entered into Cross-border Participation in Financing Business Financing Notice with Hefei Baohe
District Branch of Agricultural Bank of China Co., Ltd. with 180 days in term. Term of borrowing is from 5 Mar. 2021
to 1 Spet. 2021. Fixed annual interest rate of 2.66%, the loan amount is 99,500,000.00 Yuan.
6) The Company entered into Application for opening a domestic letter of credit with Anhui Branch of Bank of China
Limited with 179 days in term. Term of borrowing is from 12 Mar. 2021 to 7 Spet. 2021. Fixed annual interest rate of
3.63%, the loan amount is 25,000,000.00 Yuan.
7) The Company entered into Weishang Bank Domestic Letter of Credit Forfaiting Business Contract with Hefei
Economic Development Zone Branch of Huishang Bank Co., Ltd. with 359 days in term. Term of borrowing is from 16
Mar. 2021 to 10 Mar. 2022. Fixed annual interest rate of 3.35%, the loan amount is 30,000,000.00 Yuan.
8) The Company entered into a Cross-border financing loan business contract with Hefei Luyang Branch of China
Construction Bank Corporation with 12 months in term. Term of borrowing is from 24 Mar. 2021 to 23 Mar. 2022.
Loan rate of 3.55%, the loan amount is 100,000,000.00 Yuan.
9) The Company entered into a Contract for Loans of Working Capital with Anhui Branch of Bank of China with 184
182
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
days in term. Term of borrowing is from 27 May 2021 to 27 Nov. 2021, and counted from the actual withdrawal date,
every 6 months is a floating period, current annual interest rate of 3.30%, the loan amount is 100,000,000.00 Yuan.
10) The Company entered into Weishang Bank Domestic Letter of Credit Forfaiting Business Contract with Hefei
Economic Development Zone Branch of Huishang Bank Co., Ltd. with 179 days in term. Term of borrowing is from 25
Jun. 2021 to 21 Dec. 2021. Fixed annual interest rate of 2.80%, the loan amount is 20,000,000.00 Yuan.
11) The Company entered into Contract for the assignment of the seller’s claims without recourse (domestic forfaiting
business) under a domestic letter of credit with Hefei Branch of China Everbright Bank Co., Ltd. Term of borrowing is
from 25 Jun. 2021 to 21 Dec. 2021. Loan rate of 2.70%, the loan amount is 100,000,000.00 Yuan.
12) The Company entered into Domestic Letter of Credit Trade Financing Line of Credit Contract with Hefei Branch of
China Guangfa Bank Co., Ltd. Term of borrowing is from 29 Jun. 2021 to 27 Dec. 2021. Loan rate of 3.05%, the loan
amount is 17,500,000.00 Yuan.
13) The Company entered into a Contract for Loans of Working Capital with Hefei Baohe District Branch of
Agricultural Bank of China Co., Ltd. with 182 days in term. Term of borrowing is from 25 Jun. 2021 to 24 Dec. 2021,
and counted from the actual withdrawal date, 6-month floating interest rate composed of 6-month LIBOR + 0.45%
spread, current interest rate of 0.61525%, the loan amount is USD 15,000,000.00.
14) Subsidiary Zhongke Meiling Cryogenic Technology Co., Ltd. entered into a working capital loan contract with
Hefei Branch of Bank of China. Term of borrowing is from 25 Nov. 2020 to 25 Nov. 2021. Fixed interest rate of 3.3%,
the loan amount is 10,000,000.00 Yuan.
15) Subsidiary Zhongke Meiling Cryogenic Technology Co., Ltd. entered into a RMB Capital Loan Contract with
Huaining Road Branch of Hefei Science and Technology Rural Commercial Bank. Term of borrowing is from 31 Mar.
2021 to 30 Mar. 2022. Fixed interest rate of 3.85%, the loan amount is 5,000,000.00 Yuan.
16) Anhui Tuoxing Technology Co., Ltd., a wholly-owned subsidiary of Zhongke Meiling Cryogenic Technology Co.,
Ltd., entered into a working capital loan contract with Hefei Branch of Bank of China. Term of borrowing is from 1
Apr.. 2021 to 31 Mar. 2022. Fixed interest rate of 3.65%, the loan amount is 5,000,000.00 Yuan.
17) Subsidiary Changhong Ruba Trading Company(Private) Limited applied for a short-term loans of 400,000,000.00
Rupees to Lahore Branch of ICBC, loans term is from 17 December 2020 to 5 November 2021 with repayment of
principal in installments. As of the reporting period, Pakistani subsidiary has repaid the principal of Rs. 200,000,000.00
and the remaining outstanding principal Rs. 200,000,000.00 is borrowed at an interest rate of 0.9% over the lending
rate issued by the Central Bank of Pakistan.
21. Trading financial liability
Name Ending balance Opening balance
Trading financial liability 2,746,170.22 4,584,076.51
Including: Derivative financial liability 2,746,170.22 4,584,076.51
22. Note payable
Item Ending balance Opening balance
Bank acceptance 4,754,969,589.72 4,232,731,220.17
Trade acceptance 233,384,300.00 206,876,762.17
Total 4,988,353,889.72 4,439,607,982.34
183
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
23. Account payable
(1) Account payable
Item Ending balance Amount at year-begin
Total 3,669,199,259.64 2,851,999,684.30
Including: Amount aged over 1 year 52,848,517.19 74,369,337.19
(2) No major account payable with over one year book age at period-end.
24. Contract liabilities
Item Ending balance Opening balance
Total 344,400,472.19 522,550,891.28
Including: Amount aged over 1 year 19,193,682.89 91,437,631.00
25. Wages payable
(1) Category
Item Opening balance Increase this period Decrease this period Ending balance
Short-term compensation 262,858,303.46 711,775,979.24 783,367,463.54 191,266,819.16
After-service welfare- defined
23,650,290.96 71,818,678.72 92,960,358.49 2,508,611.19
contribution plans
Dismiss welfare 3,813,181.63 2,073,812.28 2,838,920.78 3,048,073.13
Total 290,321,776.05 785,668,470.24 879,166,742.81 196,823,503.48
(2) Short-term compensation
Item Opening balance Increase this period Decrease this period Ending balance
Wages, bonuses, allowances and
246,130,770.29 619,152,779.93 681,211,248.26 184,072,301.96
subsidies
Welfare for workers and staff 1,156,146.23 20,433,826.75 21,353,532.55 236,440.43
Social insurance 10,194,113.84 31,499,514.77 40,594,845.01 1,098,783.60
Including: Medical insurance 9,491,779.25 28,451,042.96 36,943,294.26 999,527.95
Work injury insurance 461,693.28 2,125,308.74 2,567,467.80 19,534.22
Maternity insurance 240,641.31 923,163.07 1,084,082.95 79,721.43
Housing accumulation fund 4,900,053.99 39,030,044.60 38,722,676.19 5,207,422.40
Labor union expenditure and
477,219.11 1,659,813.19 1,485,161.53 651,870.77
personnel education expense
Total 262,858,303.46 711,775,979.24 783,367,463.54 191,266,819.16
184
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
(3) Defined contribution plans
Item Opening balance Increase this Decrease this Ending balance
period period
Basic endowment insurance 21,115,136.67 68,912,405.91 89,308,840.17 718,702.41
Unemployment insurance 2,535,154.29 2,906,272.81 3,651,518.32 1,789,908.78
Total 23,650,290.96 71,818,678.72 92,960,358.49 2,508,611.19
26. Tax payable
Item Ending balance Opening balance
Value-added tax 63,255,410.89 41,769,712.31
Enterprise income tax 12,811,692.22 9,941,386.84
Individual income tax 2,116,661.65 2,781,283.48
Urban maintenance and construction
5,297,973.23 4,056,939.25
tax
Real estate tax 3,837,356.88 6,370,190.14
Land use tax 1,551,010.83 2,701,128.78
Educational surtax 3,801,773.07 2,977,254.61
Stamp tax 2,917,008.35 2,213,950.91
Construction fund of Water
582,690.92 643,321.87
Conservancy Projects
Treatment fund for abandon electrics
19,946,703.00 13,835,511.00
& electronics
Other 3,601,429.93 2,391,754.71
Total 119,719,710.97 89,682,433.90
26. Other account payable
Item Ending balance Opening balance
Dividend payable 19,567,820.81 4,466,628.25
Other account payable 858,847,066.64 720,235,058.47
Total 878,414,887.45 724,701,686.72
27.1 Dividends payable
Item Ending balance Opening balance
Sichuan Changhong Electric Co., Ltd. 12,422,886.20
185
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Hefei Industry Investment Holding (Group) Co., Ltd. 2,391,170.05
China Life Insurance (Group) Company 288,404.82 263,813.22
China Life Insurance Group Co., Ltd. 432,607.23 395,719.83
BOC- Fullgoal Tianyi Securities Investment Fund 153,697.50 153,697.50
Hefei Branch of BOC 360,506.00 329,766.50
Hefei collective industry association 360,505.44 329,765.99
Entrust Investment Wuhu of Provincial ABC 288,404.82 263,813.22
Other units 2,869,638.75 2,730,051.99
Total 19,567,820.81 4,466,628.25
27.2 Other account payable
(1) Other account payable by nature
Nature Ending balance Opening balance
1.Accrued expenses (expenses occurred without reimbursed) 436,862,092.27 387,297,440.24
2. Receivables received temporary and deducted temporary 35,919,383.77 30,995,522.33
3.Deposit, margin 164,355,310.79 163,264,455.70
4.Not the come-and-go with related parties in statement scope 218,998,430.45 126,828,746.47
5. Other 2,711,849.36 11,848,893.73
Total 858,847,066.64 720,235,058.47
(2) At end of Current Period, the major other account payable with account age over one year mainly
refers to the sale of margin.
28. Non-current liability due within one year
Item Ending balance Opening balance
Long-term loan principal and interest due within one year 413,561,652.50 407,141,888.08
Long term account payable due within one year 520,519.27 683,262.66
Lease liabilities due within one year 7,581,525.67 5,000,280.67
Total 421,663,697.44 412,825,431.41
29. Other current liabilities
Item Ending balance Opening balance
Pending sales tax 22,195,014.96 20,376,696.94
Factoring fees payable 906,702.57 2,547,001.79
Total 23,101,717.53 22,923,698.73
186
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
30. Long term borrowings
(1) Category of long term borrowings
Category Ending balance Amount at year-begin
Loan in mortgage 178,000,000.00 188,000,000.00
Interest payable 231,439.30
Total 178,000,000.00 188,231,439.30
(2) Long-term borrowings at period-end
Forei
Borrowing Returning gn Interest Ending balance Opening
Loan from
day day curre rate (RMB) balance (RMB)
ncy
EIBC (Export-Import Bank)
2019/12/23 2026/11/25 RMB 4.455% 80,000,000.00 90,000,000.00
Anhui Province Branch Note 1
EIBC (Export-Import Bank)
2020/3/26 2026/11/25 RMB 4.455% 98,000,000.00 98,000,000.00
Anhui Province Branch Note 2
Total 178,000,000.00 188,000,000.00
Note 1: The Company signed the "Loan Contract (Promoting the Opening-up of Loans in China - Fixed Assets)" with
the Export-Import Bank of China Anhui Branch, the Company's investment real estate, fixed assets and intangible
assets are used as mortgage for the loan. The term of the loan is from December 23, 2019 to November 25, 2026, the
interest rate of the loan is determined according to the market quotation rate of the loan with a term of more than 5
years reduced by 0.195%, which fluctuates annually, and the amount of the loan is 100,000,000.00 yuan. According to
the repayment plan agreed with the bank, the Company has repaid 6,000,000.00 yuan. It plans to repay 4,000,000.00
yuan on December 25, 2021 and repay 10,000,000.00 on June 25, 2022, a total of 14,000,000.00 yuan has been
reclassified to non-current liabilities due within one year. The ending balance is 80,000,000.00 yuan.
Note 2: The Company signed the "Loan Contract (Promoting the Opening-up of Loans in China - Fixed Assets)" with
the Export-Import Bank of China Anhui Branch, the Company's investment real estate, fixed assets and intangible
assets are used as mortgage for the loan. The term of the loan is from 26 March 2020 to 25 November 2026, the interest
rate of the loan is determined according to the market quotation rate of the loan with a term of more than 5 years
reduced by 0.195%, which fluctuates annually, and the amount of the loan is 98,000,000.00 yuan. Balance at period-end
amounted to 98,000,000.00 yuan.
31. Lease liability
Item Ending balance Opening balance
House building 12,529,575.32 4,783,483.43
Total 12,529,575.32 4,783,483.43
187
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
32. Long-term payable
Item Ending balance Opening balance
Long-term account payable 175,323.91
Special payable 1,433,821.62 1,530,000.00
Total 1,433,821.62 1,705,323.91
32.1 Classify by nature
Nature Ending balance Opening balance
Financing lease 175,323.91
32.2 Special payable
Opening Increase this Decrease Ending
Item Reason
balance period this period balance
Special funds for
Technology plan
technological
1,530,000.00 96,178.38 1,433,821.62 project in Zhongshan
transformation from
City
Zhongshan Changhong
33. Long-term wage payable
Item Ending balance Opening balance
Dismissal welfare 9,175,955.85 10,571,526.69
According to the internal early retirement policy, the long-term payable dismissal welfare bears by the
Company up to end of Current Period amounting to 9,175,955.85 yuan
34. Accrual liability
Item Ending balance Opening balance Reason
note1
Product quality guarantee 10,531,572.82 14,487,294.50 Guarantee of product
note1
Guarantee fund for quality service 12,570,944.57 47,905,440.57 Guarantee of product
Total 23,102,517.39 62,392,735.07
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
Period, the accrual liability that have not been anticipated has written-off in Current Period, actually 35,187,360.00
Yuan written-off.
35. Deferred income
(1) Classification of deferred income
188
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Opening Increase this Decrease this Ending
Item Reason
balance period period balance
Government subsidies---
subsidies of development 136,876,337.09 3,446,100.00 11,511,555.00 128,810,882.09
project
Government subsidies---
40,501,113.03 1,959,072.83 38,542,040.20
subsidies of Relocation
Total 177,377,450.12 3,446,100.00 13,470,627.83 167,352,922.29
(2) Government subsidy
New Amount
Assets
Opening subsidy in reckoned into Other Ending
Item related/Income
balance Current other income in changes balance
related
Period Current Period
Demonstration
factory construction
for the intelligent
49,500,000.00 3,132,911.40 46,367,088.60 Assets related
manufacturing of
intelligent air-
conditioner
Demolition
compensation of
38,316,384.47 1,069,128.53 37,247,255.94 Assets related
Changhong
Meiling
Adaptability
improvement on
9,459,926.70 1,182,490.86 8,277,435.84 Assets related
new coolants
production
Centre for external
cooperation of the
7,614,900.00 846,100.00 257,877.27 8,203,122.73 Assets related
environmental
protection
Subsidy for
industrial
development
7,794,000.00 625,000.00 7,169,000.00 Assets related
policy from Hefei
for first half of
2018
Changhong Air
Conditioner-
relocation of
6,880,000.00 6,880,000.00 Assets related
production base and
upgrading &
expansion
Key chip and
module for
transducer used and 6,840,000.00 6,840,000.00 Assets related
detection capacity
building
Policy funds for
manufacturing a
strong province,
subsidy for 3,750,000.00 312,500.00 3,437,500.00 Assets related
equipment for the
technological
transformation of
189
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
New Amount
Assets
Opening subsidy in reckoned into Other Ending
Item related/Income
balance Current other income in changes balance
related
Period Current Period
industrial strong
base
RESEARCH AND
APPLICATION OF
THE VISA
(VARIABLE
FREQUENCY
4,462,790.72 704,651.16 3,758,139.56 Assets related
VOLUME
INTEGRATED
INTELLIGENT
AIR-
CONDITIONER)
Special fund,
government subsidy 4,200,000.00 4,200,000.00 Assets related
CZ059001
Subsidy for
industrial
development policy 5,365,650.00 447,137.50 4,918,512.50 Assets related
from Hefei for
second half of 2019
Subsidy for
industrial
development policy 3,440,583.33 217,300.00 3,223,283.33 Assets related
from Hefei for first
half of 2020
Government subsidy
for new plant
construction -
industrialization of 3,291,666.67 250,000.00 3,041,666.67 Assets related
cryogenic
refrigeration
equipment
Subsidies for
intelligent
transformation &
upgrading of
3,280,739.58 302,837.50 2,977,902.08 Assets related
enterprises from the
new industrialization
policy in economic
development zone
2020 Triple One
Innovation Project in 2,600,000.00 54,166.67 2,545,833.33 Assets related
Anhui Province
Industrialization of
intelligent white
household
appliances software 2,303,030.33 363,636.36 1,939,393.97 Assets related
platform and typical
application research
and development
Research and
application of the
2,300,000.00 2,300,000.00 Assets related
MCU chip for
inverter control
Special funds for 2,000,000.00 2,000,000.00 Assets related
strategic emerging
190
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
New Amount
Assets
Opening subsidy in reckoned into Other Ending
Item related/Income
balance Current other income in changes balance
related
Period Current Period
industry and high-
end growth industry
Equipment subsidy
for the industrial
base technical
renovation from 1,547,083.33 117,500.00 1,429,583.33 Assets related
Economic and
Information
Commission
Demolition
compensation of 2,184,728.56 889,944.30 1,294,784.26 Assets related
Jiangxi Meiling
Subsidy from
Zhongshan Finance
Bureau (CZ028001 1,397,706.70 152,823.24 1,244,883.46 Assets related
provincial special
project 2019)
Upgrade project for
the production line
of Mianyang 1,316,666.72 98,749.98 1,217,916.74 Assets related
Meiling Intelligent
Refrigerator
Subsidy for
equipment
purchasing for Hefei 1,179,470.00 89,580.00 1,089,890.00 Assets related
Tech. Improvement
project in 2017
Promotion of the
energy-saving room 858,762.97 105,154.62 753,608.35 Assets related
air conditioner
Subsidy for purchase
of R & D
882,105.20 91,056.26 791,048.94 Assets related
instruments and
equipment
Emerging Industry
Base Fund Support 620,000.00 620,000.00 Assets related
Item
Promoting the new
industry ( annual
output of 0.6 million
medium& large
volume 761,031.21 152,206.26 608,824.95 Assets related
environmental
protection and
energy saving
freezer)
Robot policy-
rewards for 555,156.26 35,062.50 520,093.76 Assets related
purchasing robots
2018 Zhongshan
Special fund for
industrial 464,508.75 132,861.90 331,646.85 Assets related
development -
Special topic of
technical
191
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
New Amount
Assets
Opening subsidy in reckoned into Other Ending
Item related/Income
balance Current other income in changes balance
related
Period Current Period
transformation
Technical
transformation of the 869,687.52 474,375.00 395,312.52 Assets related
Athena project
Special fund for
technical 416,912.46 48,004.50 368,907.96 Assets related
improvement
Technical
transformation of
refrigerator 551,324.77 44,829.00 506,495.77 Assets related
evaporator
workshop
Technical
transformation 209,218.33 15,889.98 193,328.35 Assets related
subsidy
Technical renovation
of air conditioner 190,767.27 30,601.92 160,165.35 Assets related
production line
Special fund for
technical 484,047.64 51,904.80 432,142.84 Assets related
improvement
Subsidy for the
development on
production line
88,600.63 20,446.32 68,154.31 Assets related
technical reform for
green-friendly high-
quality metal pipe
Subsidy for
characteristic
innovation and
entrepreneurship 2,000,000.00 2,000,000.00 Assets related
carrier project from
Hefei economic &
development zone
Total 177,377,450.12 3,446,100.00 13,470,627.83 167,352,922.29
36. Share capital
Change during the period (+、-)
Item Opening balance Shares Ending balance
New shares Bonus
transferred from Other Subtotal
issued share
capitalreserve
Total shares 1,044,597,881.00 1,044,597,881.00
37. Capital reserve
Increase this
Item Opening balance Decrease this period Ending balance
period
Share premium 2,635,663,966.42 3,735.20 2,635,660,231.22
Other capital
48,173,262.70 48,173,262.70
reserve
192
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Increase this
Item Opening balance Decrease this period Ending balance
period
Total 2,683,837,229.12 3,735.20 2,683,833,493.92
Note: Changes in equity premium this year were due to: the handling fee for repurchasing B shares.
38. Treasury stock
Item Opening balance Increase this Decrease this Ending balance
period period
Repurchase of B shares 9,929,336.18 7,029,141.10 16,958,477.28
Total 9,929,336.18 7,029,141.10 16,958,477.28
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 June 30, 2021, a total of 9,377,869 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$20,112,237.81, and the
real-time exchange rate was equivalent to 16,958,477.28 yuan.
39. Other comprehensive income
Current Period
Less: written
in other
comprehensi Less
ve income in
：
previous Belong to Belong to
Item Opening balance Account before period and Inco
parent minority Ending balance
income tax in me
carried company after shareholders
Current Period tax
forward to tax after tax
gains and expe
nses
losses in
current
period
Other comprehensive income re-divided into gains/losses
Including:
Other
comprehensive
income that can
-177,046.32 -177,046.32 -177,046.32
be converted to
profit or loss
under the
equity method
Conversion
difference
arising from -21,451,084.17 -1,080,704.27 -1,094,317.03 13,612.76 -22,545,401.20
foreign
currency
financial
193
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Current Period
Less: written
in other
comprehensi Less
ve income in
：
previous Belong to Belong to
Item Opening balance Account before period and Inco
parent minority Ending balance
income tax in me
carried company after shareholders
Current Period tax
forward to tax after tax
gains and expe
nses
losses in
current
period
statement
- -
- -
Total 1,271,363.3 22,722,447.5
21,451,084.17 1,257,750.59 13,612.76
5 2
40. Surplus reserves
Increase this Decrease this
Item Opening balance Ending balance
period period
Statutory surplus reserve 300,757,088.27 300,757,088.27
Discretionary surplus
115,607,702.16 115,607,702.16
reserve
Total 416,364,790.43 416,364,790.43
41. Retained profit
Item Current Period Last Year
Amount at the end of last year 740,754,202.23 884,127,743.42
Add: adjustment from undistributed profit at period-
begin
Including: retroactive adjustment by Accounting
Standards for Business Enterprise
change of accounting policy
Correction of former material error
Change of combination scope under
common control
Amount at the beginning of this period 740,754,202.23 884,127,743.42
Add: net profit attributable to shareholders of parent
37,157,511.54 -85,565,716.91
company for this period
Less: withdraw of statutory surplus reserve
withdraw of discretionary surplus reserve 5,577,930.23
Withdraw of general risk provision
Dividend payable for ordinary shares 51,776,420.60 52,229,894.05
Dividend of ordinary shares transferred to share
capital
Ending balance 726,135,293.17 740,754,202.23
194
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
42. Operation income and operation cost
(1) Operation income and operation cost
Current Period Last Period
Item
Income Cost Income Cost
Main
9,076,019,575.56 7,709,772,571.05 6,268,491,126.30 5,248,478,697.42
business
Other
526,739,769.73 467,458,625.12 527,369,610.69 505,371,191.93
business
Total 9,602,759,345.29 8,177,231,196.17 6,795,860,736.99 5,753,849,889.35
(2) Main business classified according to product
Current Period Last Period
Product
Operation income Operation cost Operation income Operation cost
Refrigerator,
4,083,961,202.33 3,333,608,452.02 2,920,923,251.77 2,377,765,236.89
freezer
Air-conditioner 3,958,753,350.50 3,540,481,498.57 2,595,885,454.11 2,247,295,670.56
Washing
322,671,076.35 245,250,873.36 179,892,246.84 148,034,172.04
machine
Small
household
appliances and 571,948,185.39 474,186,822.18 512,769,500.40 426,489,024.05
kitchen and
bathroom
Other 138,685,760.99 116,244,924.92 59,020,673.18 48,894,593.88
Total 9,076,019,575.56 7,709,772,571.05 6,268,491,126.30 5,248,478,697.42
(3) Main business classified according to sales region
Current Period Last Period
Region
Operation income Operation cost Operation income Operation cost
Domestic 6,392,384,758.43 5,212,930,284.17 3,936,852,798.41 3,251,061,917.12
Overseas 2,683,634,817.13 2,496,842,286.88 2,331,638,327.89 1,997,416,780.30
Total 9,076,019,575.56 7,709,772,571.05 6,268,491,126.30 5,248,478,697.42
Top five clients have income in sales of 5,140,635,916.75 yuan in total, a 53.53% in total operation
income.
43. Business tax and extra charges
Item Current Period Last Period
Treatment fund for abandon electrics & electronics 24,442,938.00 23,183,817.00
Real estate tax 9,677,275.48 8,958,027.86
Stamp duty 7,917,813.37 5,581,068.92
City construction tax 6,500,216.07 5,891,358.89
195
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Item Current Period Last Period
Extra charge for education and local education surcharge 5,016,280.65 4,600,301.45
Land use tax 4,111,310.87 3,429,180.26
Water fund 3,408,779.05 3,328,943.43
Other 3,117.48 332,015.42
Total 61,077,730.97 55,304,713.23
44. Sales expense
Item Current Period Last Period
Salary and extra charges 265,425,977.62 255,283,621.81
Transport expenses 250,818,152.26 211,841,082.72
Market support expenses 146,558,469.94 135,417,268.91
Air conditioner installation expenses 132,710,203.95 114,700,395.35
National three guarantees expense 62,323,679.78 90,184,296.10
Storage lease expenses 58,782,655.17 47,400,139.04
Travelling expenses 16,450,518.67 12,373,271.22
Business activity expenses 8,575,130.77 2,617,936.49
Depreciation expenses 4,209,609.23 3,944,399.06
Vehicle consumption 3,175,822.45 2,050,607.05
Advertising expenses 1,247,421.22 352,891.37
House-lease expenses 1,207,473.65 781,344.62
Other expenses 33,320,814.23 47,036,174.49
Total 984,805,928.94 923,983,428.23
45. Administration expense
Item Current Period Last Period
Salary and social insurance etc. 95,733,835.85 79,407,413.87
Depreciation 12,053,427.34 9,232,289.11
Amortized intangible assets 9,407,284.87 10,046,746.48
Water and electricity fee 3,137,429.43 1,773,141.17
Business activities fee 2,501,946.80 1,195,638.78
Property insurance fee 1,557,260.98 1,425,753.98
Domestic travelling fee 1,462,423.83 1,315,916.59
Office fee 1,063,725.75 803,009.47
Other expenses 26,040,092.13 30,269,783.47
Total 152,957,426.98 135,469,692.92
46. R&D expenses
196
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Item Current Period Last Period
Salary and social insurance etc. 64,787,655.99 50,278,576.62
Amortized intangible assets 58,589,406.22 53,871,905.01
Trial fee of R&D 32,578,184.91 31,728,340.10
Depreciation 6,808,269.93 7,707,855.52
Inspection and authentication fee 6,718,245.74 4,446,068.74
Utility bill 4,976,797.24 5,126,916.81
Cost of mould 1,384,855.16 2,727,245.15
Software usage fee 1,291,273.00 2,690,872.94
Other expenses 8,978,566.02 9,311,368.00
Total 186,113,254.21 167,889,148.89
47. Financial expenses
Item Current Period Last Period
Interest expenditure 37,292,383.25 45,498,046.65
Less: Interest income 62,433,816.96 74,784,016.69
Add: exchange loss 19,162,463.83 9,367,991.95
Procedure charge expenditure 8,002,685.90 10,335,558.03
Discount expenditure -7,719,706.12 -3,285,693.99
Total -5,695,990.10 -12,868,114.05
48. Other income
Item Current Period Last Period
Corporate policy funds 27,000,000.00 28,310,000.00
Demonstration factory construction for the intelligent
3,132,911.40
manufacturing of intelligent air-conditioner
3,000,000.00
Loan discount
Immediate refund of VAT for software products 2,548,001.17 2,071,200.78
Subsidy for characteristic innovation and entrepreneurship carrier
2,000,000.00
project from Hefei economic & development zone
2019 VAT refund 1,635,266.39
Adaptability improvement on new coolants production 1,182,490.86 1,182,490.86
Economic Development Zone Industrialization Policy Award and
1,140,400.00
Supplementary Funds in 2019
Demolition compensation of Changhong Meiling 1,069,128.53 1,234,182.17
Hefei 2020 Smart Home Appliances (Home Furnishing)
1,000,000.00
Technology Award Supplement
Demolition compensation of Jiangxi Meiling 889,944.30 889,944.30
197
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Item Current Period Last Period
RESEARCH AND APPLICATION OF THE VISA (VARIABLE
FREQUENCY VOLUME INTEGRATED INTELLIGENT AIR- 704,651.16 704,651.16
CONDITIONER)
Hefei Industrial development policy subsidy for first half of 2018 625,000.00 625,000.00
The second batch of awards for supporting China Sound Valley
544,200.00
construction projects in 2020
Faster revenue growth corporate incentives 500,000.00
Technical transformation of the Athena project 474,375.00 2,143,125.00
Hefei Industrial development policy subsidy for second half of
447,137.50 1,341,412.50
2019
Industrialization of intelligent white household appliances software
363,636.36 363,636.36
platform and typical application research and development
Policy funds for manufacturing a strong province, subsidy for
equipment for the technological transformation of industrial strong 312,500.00 312,500.00
base
Subsidies for intelligent transformation & upgrading of enterprises
from the new industrialization policy in economic development 302,837.50 302,837.50
zone
Centre for external cooperation of the environmental protection 257,877.27
Government subsidy for new plant construction - industrialization
250,000.00 250,000.00
of cryogenic refrigeration equipment
Subsidy for industrial development policy from Hefei for first half
217,300.00
of 2020
Subsidy from Zhongshan Finance Bureau (CZ028001 provincial
152,823.24 152,823.24
special project 2019)
Promoting the new industry (annual output of 0.6 million
medium& large volume environmental protection and energy 152,206.26 152,206.26
saving freezer)
2018 Zhongshan Special fund for industrial development - Special
132,861.90 132,861.90
topic of technical transformation
Equipment subsidy for the industrial base technical renovation 117,500.00 117,500.00
from Economic and Information Commission
Subsidy for employment stable 111,761.05 4,457,036.59
Promotion of the energy-saving room air conditioner 105,154.62 105,154.62
Upgrade project for the production line of Mianyang Meiling 98,749.98 98,749.98
Intelligent Refrigerator
Subsidy for purchase of R & D instruments and equipment 91,056.26 73,500.00
Subsidy for equipment purchasing for Hefei Tech. Improvement
89,580.00 89,580.00
project in 2017
2020 Triple One Innovation Project in Anhui Province 54,166.67
Special fund for technical improvement 51,904.80 21,442.62
Special fund for technical improvement 48,004.50 47,825.00
Technical transformation of refrigerator evaporator workshop 44,829.00 44,829.00
Robot policy-rewards for purchasing robots 35,062.50
198
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Item Current Period Last Period
Technical renovation of air conditioner production line 30,601.92 30,601.92
Subsidy for the development on production line technical reform
20,446.32 20,446.32
for green-friendly high-quality metal pipe
Technical transformation subsidy 15,889.98
R290 air-conditioning production IOC subsidy 2,403,000.00
Special funds for export credit insurance 1,475,997.00
Technology Innovation and Enterprise Development Fund 640,240.37
2025 Industrial Development Fund 630,000.00
Feidong County's policy awards for promoting high-quality
500,000.00
economic development
Special subsidy funds for epidemic prevention and control 500,000.00
Freezer project of Changhong Meiling 367,031.26
Other units 6,299,844.49 3,060,318.49
Total 57,250,100.93 54,852,125.20
49. Investment income
Item Current Period Last Period
Long-term equity investment income by equity method -16,047,810.77 209,880.54
Investment income obtained from disposal of Trading financial
65,827,326.06 5,402,087.72
assets
Income from financial products 2,754,190.61 1,539,918.00
Total 52,533,705.90 7,151,886.26
50. Changes in fair value gains
Item Current Period Last Period
Trading financial assets -11,569,560.58 -4,785,270.15
Including :Income of fair value changes from derivative financial
-18,496,182.50 -4,785,270.15
instruments
Wealth management product interest accrual 6,926,621.92
Trading financial liability 1,837,906.29 -4,939,481.97
Including :Income of fair value changes from derivative financial
1,837,906.29 -4,939,481.97
instruments
Total -9,731,654.29 -9,724,752.12
51. Credit impairment loss
Item Current Period Last Period
199
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Note receivable bad debt loss 546,876.51 -451,763.04
Account receivable bad debt loss -15,669,395.22 -22,539,727.97
Other account receivable bad debt loss 1,514.82 721,269.82
Total -15,121,003.89 -22,270,221.19
52. Assets impairment loss
Item Current Period Last Period
Loss of inventory depreciation and loss of contract performance
-43,310,366.42 -26,583,248.58
cost impairment
Total -43,310,366.42 -26,583,248.58
53. Income from assets disposal
Amount reckoned
into non-recurring
Item Current Period Last Period
gains/losses in
Current Period
Income from non-current assets disposal -208,978.90 -178,704.98 -208,978.90
Including: income classify to assets ready for
sale
income not classify as to assets ready
-208,978.90 -178,704.98 -208,978.90
for sale
Including: Income from fixed assets
-208,978.90 -178,704.98 -208,978.90
disposal
Income from intangible assets
disposal
Total -208,978.90 -178,704.98 -208,978.90
54. Non-operation revenue
Amount reckoned
into non-recurring
Item Current Period Last Period
gains/losses in
Current Period
Income of penalty 854,054.88 366,979.53 854,054.88
Profit from disposal of non-current assets 117,430.00 117,430.00
Other 4,890,835.83 3,078,629.68 4,890,835.83
Total 5,862,320.71 3,445,609.21 5,862,320.71
55. Non-operating expenditure
Amount reckoned
into non-recurring
Item Current Period Last Period
gains/losses in
Current Period
Non-current asset retirement losses 645,034.44 645,034.44
Penalty and late fee 34,829.07 77.03 34,829.07
200
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Other 80,729.11 959,477.10 80,729.11
Total 760,592.62 959,554.13 760,592.62
56. Income tax expenses
Item Current Period Last Period
Current income tax 21,302,275.31 8,498,558.12
Deferred Income Tax 15,784,696.07 -11,361,569.54
Total 37,086,971.38 -2,863,011.42
57. Other comprehensive income
Found more in 39. Other comprehensive income in VI
58. 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 Period Last Period
Government subsidy and rewards 40,956,209.27 49,374,979.95
Collection of restriction fund 22,688,330.93 4,801,740.89
Cash deposit, deposit 9,420,313.94 11,794,014.82
Compensations 2,605,385.53 1,589,695.33
Rental income 2,178,291.38 2,537,602.16
Other 1,793,896.56 4,104,674.84
Total 79,642,427.61 74,202,707.99
2) Cash paid for other activities relating to operation
Item Current Period Last Period
Transfer to restriction fund 397,877,095.29 23,523,106.48
Market expenses 103,773,740.45 103,452,106.47
Rental fee 57,814,676.41 56,501,840.38
Service supporting fee 31,063,421.76 27,112,533.75
Petty cash, deposit, Cash deposit 27,666,562.51 33,991,028.48
Travel expenses, meeting fees and exhibition
23,609,336.42 15,954,778.39
fees
Business activities fee 11,888,247.82 7,486,994.76
Inspection and certification fee, certification
11,298,717.35 8,194,323.28
charge and reviewing fee
201
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Item Current Period Last Period
Transportation and vehicle expenses 8,370,198.29 6,928,444.73
Handling fee 8,259,452.97 9,596,183.72
Repair charge 8,129,554.19 5,969,217.79
Technological cooperation costs and consulting
6,098,074.18 4,050,588.10
charge
Office expenses 3,172,145.59 3,977,096.29
Advertising fee 2,917,266.75 4,535,316.89
Labor service fee 2,003,400.19 2,806,291.21
Communication fee 1,073,434.97 281,653.09
Other expense 57,481,090.49 91,404,105.71
Total 762,496,415.63 405,765,609.52
3) Cash received from other activities relating to investment
Item Current Period Last Period
Interest income arising from bank savings 69,755,550.75 62,758,263.18
Income of forward exchange settlement 67,706,807.74 5,402,087.72
Cash deposit 925,112.51 230,611.63
Total 138,387,471.00 68,390,962.53
4) Cash paid for other activities relating to investment
Item Current Period Last Period
Loses of forward exchange settlement 47,506.93
Total 47,506.93
5) Cash received from other activities relating to financing
Item Current Period Last Period
Bill discounting fundraising 4,675,857.30
Total 4,675,857.30
6) Cash paid for other activities relating to financing
Item Current Period Last Period
Payment for B share repurchase 7,032,876.30
Lease liability principal and interest 4,097,081.48
Financing lease 175,323.88 893,318.70
Handling charge of dividend 36,415.52 36,893.14
Total 11,341,697.18 930,211.84
202
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
(2) Supplementary of the consolidated cash flow statement
Item Current Period Last Period
1. Net profit is adjusted to cash flow of operation
activities:
Net profit 55,696,358.16 -219,171,870.49
Add: provision for depreciation of assets 32,172,406.39 48,853,469.77
Depreciation of fixed assets, consumption of oil gas assets
108,832,291.21 104,594,561.21
and depreciation of productive biological assets
Depreciation of right-of-use assets 3,296,977.97
Amortization of intangible assets 70,475,493.03 66,064,785.04
Amortization of long-term retained expense 208,978.90 178,704.98
Loss from disposal of fixed assets, intangible assets and
527,604.44
other long term assets (gain is listed with “-”)
Loss from discarding fixed assets as useless (gain is listed
9,731,654.29 9,724,752.12
with “-”)
Loss from change of fair value (gain is listed with “-”) -5,978,969.88 -19,917,978.09
Financial expense (gain is listed with “-”) -52,533,705.90 -7,151,886.26
Investment loss (gain is listed with “-”) 19,447,731.84 -9,942,973.01
Decrease of deferred income tax assets (increase is listed
-3,655,216.54 -1,418,596.53
with “-”)
Increase of deferred income tax liabilities (decrease is
-587,211,166.68 -424,221,441.03
listed with “-”)
Decrease of inventories (increase is listed with “-”) -988,302,199.73 -478,954,328.10
Decrease of operational accounts receivable (increase is
748,795,645.68 543,257,841.98
listed with “-”)
Other
Net cash flow arising from operation activities -588,496,116.82 -388,104,958.41
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 period-end of cash 4,767,551,500.75 4,792,468,168.07
Less: Opening balance of cash 6,425,529,815.10 5,385,807,475.51
Add: Balance at period-end of cash equivalents
Less: Opening balance of cash equivalents
Net increase in cash and cash equivalents -1,657,978,314.35 -593,339,307.44
(3) No net cash paid for subsidiary obtained in Current Period
(4) No net cash received from subsidiary disposal in Current Period
(5) Cash and cash equivalent
203
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Item Current Period Last Period
Cash 4,767,551,500.75 4,792,468,168.07
Including: cash in stock 89,912.16 128,714.24
Bank deposits available for payment at any time. 4,083,081,613.97 4,552,864,202.70
Other monetary fund available for payment at any time 684,379,974.62 239,475,251.13
Cash equivalents
Including: bond investment due within 3 months
Balance of cash and cash equivalents at period-end 4,767,551,500.75 4,792,468,168.07
Including: using the restricted cash and cash equivalents of
the parent company or subsidiary of the group
59. Assets with ownership or the right to use restricted
Item Book value at period-end Reasons
Monetary fund 534,571,433.50 Cash deposit, frozen funds
note 1
Receivables financing 440,912,836.95 Pledged
Investment real estate note 2 3,549,391.07 Mortgage
note 2
Fixed assets 357,384,947.94 Mortgage
Intangible assets note 2 285,348,212.33 Mortgage
Total 1,621,766,821.79
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. 30. Long-term loans.
60. Foreign currency
(1) Foreign currency
Item Ending foreign currency Exchange rate Ending RMB converted
balance balance
Monetary fund 205,655,918.43
Including: USD 27,201,221.23 6.4601 175,722,609.27
Euro 1,880,390.26 7.6862 14,453,055.62
AUD 1,420,183.66 4.8528 6,891,867.27
GBP 117,444.91 8.9410 1,050,074.94
Pakistan Rupi 58,078,577.55 0.0408 2,369,605.96
IDR 6,672,183,097.00 0.000446 2,975,793.66
204
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Item Ending foreign currency Exchange rate Ending RMB converted
balance balance
HKD 3,297.42 0.8321 2,743.78
PHP 16,492,228.42 0.1328 2,190,167.93
Account receivable 921,010,335.70
Including: USD 107,742,004.39 6.4601 696,024,122.56
Euro 15,528,162.84 7.6862 119,352,565.22
AUD 8,502,022.00 4.8528 41,258,612.36
GBP 338,211.00 8.9410 3,023,944.55
Pakistan Rupi 1,101,410,856.42 0.0408 44,937,562.94
IDR 35,298,970,481.31 0.000446 15,743,340.83
PHP 5,046,590.70 0.1328 670,187.24
Other account receivable 9,209,447.07
Including: USD 1,265,765.52 6.4601 8,176,971.84
Pakistan Rupi 13,544,917.00 0.0408 552,632.61
PHP 225,500.00 0.1328 29,946.40
HKD 540,675.66 0.8321 449,896.22
Account payable 26,970,597.19
Including: USD 1,316,275.31 6.4601 8,503,270.13
Euro 13,419.32 7.6862 103,143.58
Pakistan Rupi 255,521,203.84 0.0408 10,425,265.12
PHP 59,781,011.75 0.1328 7,938,918.36
Other account payable 14,417,720.72
Including: USD 9,166.51 6.4601 59,216.57
HKD 17,362.53 0.8321 14,447.36
Pakistan Rupi 348,440,514.34 0.0408 14,216,372.99
PHP 961,474.36 0.1328 127,683.80
Short-term loans 105,061,500.00
Including: USD 15,000,000.00 6.4601 96,901,500.00
Pakistan Rupi 200,000,000.00 0.0408 8,160,000.00
(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,
205
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
mainly operates in Philippines; Recording currency is PHP.
61. Government subsidy
Amount reckoned
Item Amount Item into current
gain/loss
Enterprise policy funds 27,000,000.00 Other 27,000,000.00
income
Other
Loan discount 3,000,000.00 3,000,000.00
income
Deferred
2020 Triple One Innovation Project in Anhui Province 2,600,000.00 54,166.67
income
Immediate refund of VAT for software products 2,548,001.17 Other 2,548,001.17
income
2019 VAT refund 1,635,266.39 Other 1,635,266.39
income
Economic Development Zone Industrialization Policy Other
1,140,400.00 1,140,400.00
Award and Supplementary Funds in 2019 income
Hefei 2020 Smart Home Appliances (Home Furnishing) Other
1,000,000.00 1,000,000.00
Technology Award Supplement income
Centre for external cooperation of the environmental Deferred
846,100.00
protection income
The second batch of awards for supporting China Sound Other
544,200.00 544,200.00
Valley construction projects in 2020 income
Other
Faster revenue growth corporate incentives 500,000.00 500,000.00
income
Other units 6,315,427.16 Other 6,315,427.16
income
Total 47,129,394.72 43,737,461.39
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
6. Subsidiary newly established:
Name of company New merger Shareholding Net asset at Net profit in
206
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
reasons ratio period-end Current Period
Anhui Lingan Medical Equipment Co., Investment
63.2683% 9,997,480.00 -2,520.00
Ltd establishment
7. Subsidiary merger by absorption: Nil
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 Investment
Hefei Hefei 63.2683
Co., Ltd.1) sales establishment
Software
Sichuan Hongmei Intelligent Technology Mianyang Mianyang Investment
100
Co., Ltd.2) development establishment
Manufacturing and
Mianyang Meiling Refrigeration Co., Ltd. Mianyang Mianyang Investment
95 5
3) sales establishment
Manufacturing and
Jiangxi Meiling Electric Appliance Co., Jingdezhen Jingdezhen Investment
98.75 1.25
Ltd. 4) sales establishment
Hefei Meiling Wulian Technology Co., Software
Investment
Hefei Hefei 100
Ltd5） development establishment
Hefei Meiling Electric Appliances Investment
Hefei Hefei Sales 99.82 0.18
Marketing Co., Ltd6) establishment
Jinan Xiangyou Electric Appliances Investment
Jinan Jinan Sales 93.4
Marketing Co., Ltd7) establishment
Wuhan Meizirong Electrical Marketing Co., Investment
Wuhan Wuhan Sales 92
Ltd8) establishment
Zhengzhou Meiling Electric Appliances Zhengzho Investment
Zhengzhou Sales 100
Marketing Co., Ltd9) u establishment
Taiyuan Meiling Electric Appliances Investment
Taiyuan Taiyuan Sales 100
Marketing Co., Ltd.10) establishment
Guangzhou Meiling Electric Appliances Guangzho Guangzho Investment
Sales 98
Marketing Co., Ltd11) u u establishment
Tianjin Meiling Electric Appliances Investment
Tianjin Tianjin Sales 100
Marketing Co., Ltd.12) establishment
Enterprise
Manufacturing and
Hefei Meiling Nonferrous Metal Products combined not
Hefei Hefei 100
Co., Ltd.13) sales under the same
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
207
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Main office Registration Shareholding ratio（%)
Subsidiary Business nature Acquire by
place place Directly Indirectly
ONESIA,PT 15） establishment
ChanghongRubaTradingCompa（Private） Pakistan Pakistan Investment
Sales 60
Limited 16) establishment
Enterprise
Manufacturing and
Sichuan Changhong Air-conditioner Co., Mianyang Mianyang combined
100
Ltd. 17) sales under the same
control
Enterprise
Manufacturing and
Zhongshan Changhong Electric Co., combined
Zhongshan Zhongshan 90 10
Ltd.18) sales under the same
control
Enterprise
Manufacturing and
combined not
Hefei Meiling Group Holdings Limited19) Hefei Hefei 100
sales under the same
control
Enterprise
Manufacturing and
Meiling Equator Household Appliance combined not
Hefei Hefei 100
(Hefei) Co., Ltd.20) sales under the same
control
Enterprise
Manufacturing and
combined not
Hefei Equator Appliance Co., Ltd.21) Hefei Hefei 100
sales under the same
control
Manufacturing and
Hongyuan Ground Energy Heat Pump Tech. Mianyang Mianyang Investment
51
Co., Ltd22) sales establishment
Manufacturing and
Ground Energy Heat Pump Tech. Investment
Zhongshan Zhongshan 51
(Zhongshan) Co., Ltd. 23) sales establishment
Meiling CANDY Washing Machine Co., Manufacturing and
Investment
Hefei Hefei 60
Ltd.24） sales establishment
Guangzhou Changhong Trading Co., Guangzhou Guangzhou Investment
Sales 100
Ltd25） establishment
Hebei Hongmao Household Appliance Manufacturing and
Handan Handan Investment
99.0361
Technology Co., Ltd26） sales establishment
Manufacturing and
Investment
Anhui Tuoxing Technology Co., Ltd.27） Hefei Hefei 63.2683
sales establishment
CH-Meiling.International (Philippines) Investment
Philippines Philippines Sales 100
Inc.28） establishment
Hefei Changhong Meiling Life Appliances Investment
Hefei Hefei Sales 70
Co., Ltd. 29） establishment
Anhui Ling’an Medical Equipment Co., Ltd Manufacturing and
Investment
Lu'an Lu'an 63.2683
30） sales establishment
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
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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)
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.
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
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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
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
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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 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.
10) 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,
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Meiling Marketing totally held the entire equity interests of Tianjin Meiling.
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].
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
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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) 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
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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 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 increasedcapital of RMB 150 millionto Zhongshan Changhong according to the existing shareholding
ratios, of which the Companyincreasedcapital of RMB 135 million, Changhong Air-Conditioning increased capital
ofRMB 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 fundedRMB 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.
20) Meiling EquatorHousehold Appliance (Hefei) Co., Ltd.( hereinafter referred to as EquatorHousehold Appliance) was the
Sino-foreign joint venture jointly set up by original Meiling Group and EQUATOR INVESTMENTS (USA) INC.( EQUATOR
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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
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.
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27) Anhui Tuoxing Technology Co., Ltd. (hereinafter referred to as Anhui Tuoxing) 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 June 30, 2021, actually 10 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. (hereinafter referred to as Changmei Life) was established on 24
December 2020, jointly established by the Company and Ningbo Hongling Enterprise Management Partnership
(Limited Partnership). As of June 30, 2021, the Company actually 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.
30) Anhui Ling’an Medical Equipment Co., Ltd. (hereinafter referred to as Ling’an Medical) was established on 4
September 2021, which is a wholly-owned subsidiary of Zhongke Meiling, and registered capital of 10 million yuan.
As of June 30, 2021, actually 10 million yuan contributed.
(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
period-end
Period Current Period
Zhongke Meiling 36.7317% 19,037,359.58 1,598,892.00 86,252,629.03
Hongyuan Ground
49.00% -4,964,708.04 12,147,092.24
Energy
Ridian Technology 0.9639% -16,945.64 1,276,558.15
Changmei Life 30.00% 5,211,265.13 20,211,265.13
(3) Financial information for major non-wholly-owned subsidiary
Ending balance
Subsidiary Non-current
Current assets Non-current assets Total assets Current liability Totalliabilities
liability
Zhongke
429,654,686.43 133,236,569.55 562,891,255.98 321,652,192.96 6,421,214.87 328,073,407.83
Meiling
Hongyuan
Ground 62,319,001.48 29,771,693.76 92,090,695.24 64,044,788.09 3,255,922.99 67,300,711.08
Energy
Ridian
297,773,560.26 48,537,604.93 346,311,165.19 213,436,113.88 432,142.84 213,868,256.72
Technology
Changmei Life 317,064,609.76 317,064,609.76 249,693,726.01 249,693,726.01
(Continued)
216
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Opening balance
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
Ground 110,464,175.51 25,279,044.46 135,743,219.97 100,181,345.93 639,832.66 100,821,178.59
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
Changmei Life
(Continued)
Current Period
Subsidiary Total comprehensive Cash flow from
Operation income Net profit
income operation activity
Zhongke
271,384,729.79 51,828,122.35 51,828,122.35 44,525,447.06
Meiling
Hongyuan
Ground 49,226,548.73 -10,132,057.22 -10,132,057.22 -57,732,313.13
Energy
Ridian
152,108,811.31 -2,059,812.01 -2,059,812.01 -206,486,307.38
Technology
Changmei
486,144,189.56 17,370,883.75 17,370,883.75 61,431,363.80
Life
(Continued)
Last Period
Subsidiary Total comprehensive Cash flow from
Operation income Net profit
income operation activity
Zhongke
113,979,900.96 3,187,502.65 3,187,502.65 -1,593,316.20
Meiling
Hongyuan
Ground 89,983,710.53 -9,754,270.96 -9,754,270.96 6,460,975.38
Energy
Ridian
388,868,705.58 8,761,499.08 8,761,499.08 -79,204,317.51
Technology
Changmei
Life
(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: nil
217
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
3. Equity in joint venture or associate enterprise
(1) Major joint venture or associate enterprise
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
Ending balance/Current Period
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 119,979,518.16 134,730.09 4,209,479,633.63 40,469,336.49 11,295,307.29 24,228,107.02
Including: cash and
7,210,015.53 27,526.83 2,349,292,997.85 104,814.25 4,364,075.98 9,789,062.89
cash equivalent
Non-current assets 44,109,181.42 18,174,212.08 9,751,159.60 9,249,737.02 12,352.49 13,419,496.74
Total assets 164,088,699.58 18,308,942.17 4,219,230,793.23 49,719,073.51 11,307,659.78 37,647,603.76
Current liability 171,913,449.12 5,137,337.05 4,157,099,291.25 6,374,225.39 116,070.34 17,034,439.84
Non-current
2,221,938.05 1,977,248.32
liability
Total liabilities 171,913,449.12 5,137,337.05 4,159,321,229.30 6,374,225.39 116,070.34 19,011,688.16
Minority's interest 1,083,928.80
Equity attributable
to shareholder of -7,824,749.54 13,171,605.12 59,909,563.93 43,344,848.12 11,191,589.44 17,551,986.80
parent company
Share of net assets
measured by -3,129,899.82 6,359,250.95 29,954,781.97 21,238,975.58 2,797,897.36 4,387,996.70
shareholding
218
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Ending balance/Current Period
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
Adjustment
--Goodwill 821,877.28 1,416,227.93
Unrealized profit of
the internal
265,726.62 7,821,342.04 60,650.76 4,349.86 10,147.35
downstream
transactions
Unrealized profit of
the internal
upstream
transactions
Other 3,395,626.44
Book value of the
equity investment
6,359,250.95 22,955,317.21 21,178,324.82 2,793,547.50 5,794,077.28
for associate
enterprise
Fair value of equity
investment for the
affiliates with
consideration
publicly
Operation income 129,037,750.98 5,593,676,163.39 1,673,087.14 718,023.89 7,596,668.97
Financial expenses 387,772.68 236,147.00 -33,239,098.14 338.80 -59,414.10 -51,562.20
Income tax
1,709,882.92 147,397.82 -
expenses
Net profit 7,290,919.13 -967,324.02 -27,599,431.03 -1,875,733.81 -226,371.54 -1,079,748.77
Net profit of
discontinuing
operation
Other
comprehensive -148,798.81
income
Total
comprehensive 7,142,120.32 -967,324.02 -27,599,431.03 - 1,875,733.81 -226,371.54 -1,079,748.77
income
Dividend received
from associate
enterprise in
Current Period
(Continued)
Openingbalance/LastPeriod
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
17,707,474.4
Current assets 68,287,114.60 626,580.92 3,812,812,831.86 40,622,241.47 21,480,727.03
4
219
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Openingbalance/LastPeriod
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
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
13,175,012.6
Non-current assets 45,830,745.35 18,704,537.29 1,226,646.52 10,161,277.73 12,352.49
2
30,882,487.0
Total assets 3,814,039,478.38 50,783,519.20 21,493,079.52
114,117,859.95 19,331,118.21 6
19,463,087.1
Current liability 5,192,189.07 3,724,855,931.57 5,562,937.27 10,075,118.54
129,084,729.80 6
Non-current liability - 117,900.00 1,886,933.19
21,350,020.3
Total liabilities 5,192,189.07 3,724,973,831.57 5,562,937.27 10,075,118.54
129,084,729.80 5
Minority's interest 822,750.86
Equity attributable
-
to shareholder of 89,065,646.81 45,220,581.93 11,417,960.98 8,709,715.85
14,966,869.86 14,138,929.14
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
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 45,300,541.58 3,605,343,938.12 23,259,797.54 10,087.61 1,501,031.58
Financial expenses 10,265,459.27 -1,117.38 -22,628,943.85 1,359.95 -134,260.28 124,588.98
Income tax expenses 1,037,833.62
Net profit -11,109,497.99 -639,886.66 5,881,057.16 -128,904.93 23,543.66 -4,433,824.06
Net profit of
discontinuing
operation
Other
comprehensive 188,871.84
income
220
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Openingbalance/LastPeriod
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 -
-639,886.66 5,881,057.16 -128,904.93 23,543.66 -4,433,824.06
income 10,920,626.15
Dividend received
from associate
6,649,787.97
enterprise in Current
Period
(4) Financial summary for non-important Joint venture and associate enterprise
Ending balance/Current
Item Opening balance/Last Period
Period
Associated companies：
Total book value of investment
Total amount measured by shareholding
ratio
--Net profit -69,558.59 -129,133.66
--Other comprehensiveincome
-- Total comprehensiveincome -69,558.59 -129,133.66
(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. Relevant risks related with financial instrument
The major financial instruments of the Company include borrowings, account receivables, account
payable, Trading financial assets, Trading 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
currency transaction amount, foreign currency dominated loans and interest expenditure, the Company
221
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
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 30 June 2021, the interest-bearing debts mainly referred to borrowing contracts at
floating rate denominated in RMB with total amount of 810,984,823.95 Yuan, the floating rate loan
contract measured by RMB amounted as 542,000,000.00 Yuan in total; borrowing contracts at fixed
rate denominated in USD with total amount of 96,901,500.00 Yuan; borrowing contracts at fixed rate
denominated in IDR with total amount of 8,160,000.00 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 value disclosure
1. Asset and liability measured by fair value at end of Current Period and fair value measurement level
F ai r v al u e at p e r i o d - e n d
Item st nd
1 level 2 level 3rd level Total
I. Continuous fair value
— — — —
measurement
(i) Trading financial assets 28,746,156.57 726,926,621.92 755,672,778.49
1.Financial assets measured at fair
value and whose changes are 28,746,156.57 726,926,621.92 755,672,778.49
included in current gains/losses
Including: Derivative financial
28,746,156.57 28,746,156.57
assets
Principal and Interest of
726,926,621.92 726,926,621.92
Wealth Management Products
(ii) Other non-current financial
43,148,931.34 505,000,000.00 548,148,931.34
assets
(iii) Receivables financing 1,132,467,568.98 1,132,467,568.98
Total assets continuously
28,746,156.57 770,075,553.26 1,637,467,568.98 2,436,289,278.81
measured at fair value
(ii) Trading financial liability 2,746,170.22 2,746,170.22
1. Financial liabilities measured by 2,746,170.22 2,746,170.22
222
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
F ai r v al u e at p e r i o d - e n d
Item
1st level 2nd level 3rd level Total
fair value and with variation
reckoned into current gains/losses
Including: Derivative financial
2,746,170.22 2,746,170.22
liability
Total liabilities continuously
2,746,170.22 2,746,170.22
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 are long-term investments in the fund company. 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
Share-
Regist Voting rights
Controlling shareholder and Business holding ratio
ration Registered capital ratio in the
ultimate controller nature in the
place Company
Company
Sichuan Changhong Electric Co., Miany Manufactur
4,616,244,222.00 26.98% 26.98%
Ltd. ang e and sales
223
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
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 Opening balance this Ending balance
this period
period
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 Ratio at Ratio at period-
Ending balance Opening balance
period-end 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 Period 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
Changhong Ruba Electric Company (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 Air-
Hongyuan Ground Energy Heat Tech. Co., Ltd
conditioner
Associated enterprise of subsidiary Changhong Air-
Sichuan Tianyou Guigu Technology Co., Ltd
conditioner
Associated enterprise of subsidiary Changhong Air-
Chengdu Guigu Environmental Tech. Co., Ltd.
conditioner
4. Other related party
Other related party Relationship with the company
224
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
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
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
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
Changhong Europe Electric s.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.CHANGHONG ELECTRIC INDONESIA
controller
Control by same controlling shareholder and ultimate
CHANGHONG (HK) TRADING LIMITED
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
Control by same controlling shareholder and ultimate
Sichuan Hongwei Technology Co., Ltd.
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
Control by same controlling shareholder and ultimate
Sichuan Changhong Solar Technology Co., Ltd.
controller
225
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Other related party Relationship with the company
Control by same controlling shareholder and ultimate
Sichuan Changhong Power Supply 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 Network 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
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
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 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
Mianyang Leyijia Tradeing Chain Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Changhong Grand-Pro Technology Co., Ltd.
controller
Zhongshan Guanghong Moulding Technology Co., Control by same controlling shareholder and ultimate
Ltd. controller
Sichuan Hongcheng Construction Engineering Co., Control by same controlling shareholder and ultimate
Ltd. controller
Sichuan Changhong Jiechuang Lithium Battery Control by same controlling shareholder and ultimate
Technology Co., Ltd. controller
Control by same controlling shareholder and ultimate
Mianyang Huafeng Interconnect Technology Co., Ltd
controller
Control by same controlling shareholder and ultimate
Sichuan Qiruike Technology Co., Ltd.
controller
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
226
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Other related party Relationship with the company
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
(ii) Related transactions
1. Purchasing commodity
Current Period Last Period
Related party Content (in 10 thousand (in 10 thousand
Yuan) Yuan)
Sichuan Changhong Mold Plastic Tech. Co., Ltd. Purchasing commodity 47,151.73 28,634.55
Sichuan Changhong Electric Co., Ltd. Purchasing commodity 31,287.06 18,465.23
Sichuan Changxin Refrigeration Parts Co., Ltd. Purchasing commodity 29,722.49 13,415.61
Changhong Huayi Compressor Co., Ltd. Purchasing commodity 25,353.49 17,759.15
Sichuan Changhong Jijia Fine Co., Ltd. Purchasing commodity 24,414.33 13,209.22
Mianyang Highly Electric Co., Ltd. Purchasing commodity 18,284.13 7,870.76
Sichuan Changhong Package Printing Co., Ltd. Purchasing commodity 6,913.07 3,616.69
Sichuan Aichuang Science & Technology Co.,
Purchasing commodity 5,848.84 4,319.04
Ltd.
Changhong Ruba Electric Company (Private) Ltd. Purchasing commodity 4,715.18 4,630.78
Sichuan Ailian Science & Technology Co., Ltd. Purchasing commodity 1,934.07 1,641.27
Sichuan Changhong Electronic Products Co., Ltd. Purchasing commodity 1,797.64 1,209.94
Sichuan Changhong Precision Electronics Tech.
Purchasing commodity 1,291.84 744.35
Co., Ltd.
Changhong International Holdings (Hong Kong)
Purchasing commodity 672.20 870.43
Co., Ltd.
Sichuan Zhiyijia Network Technology Co., Ltd. Purchasing commodity 625.80 44.87
Hefei Changhong Industrial Co., Ltd. Purchasing commodity 293.88 14.65
Guangdong Changhong Electronics Co., Ltd. Purchasing commodity 254.71 196.21
Hunan Grand-Pro Intelligent Tech. Company Purchasing commodity 75.66 766.89
Zhongshan Guanghong Moulding Technology
Purchasing commodity 77.26
Co., Ltd.
081 Electronic Group Co., Ltd. Purchasing commodity 4.95 10.08
Sichuan Changhong Intelligent Manufacturing
Purchasing commodity 1.77 3.25
Technology Co., Ltd.
Sichuan Changhong New Energy Technology Co.,
Purchasing commodity 0.96 1.71
Ltd.
Chengdu Guigu Environmental Tech. Co., Ltd. Purchasing commodity 0.18
Sichuan Changhong Electronics Holding Group
Purchasing commodity 1.59
Co., Ltd.
Sichuan Changhong Property Services Co., Ltd. Purchasing commodity 0.03
227
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Current Period Last Period
Related party Content (in 10 thousand (in 10 thousand
Yuan) Yuan)
Guangyuan Changhong Electronic Technology
Purchasing commodity 0.88
Co., Ltd.
Sichuan Service Exp. Appliance Service Chain
Purchasing commodity 0.19
Co., Ltd.
Hongyuan Ground Energy Heat Tech. Co., Ltd Purchasing commodity 374.67
Total 200,721.24 117,802.04
2. Accept the services
Related party Content Current Period Last Period
Sichuan Changhong Minsheng Logistics Co., Accept the
224,557,352.50 183,300,319.49
Ltd. services
Sichuan Service Exp. Appliance Service Chain Accept the
93,499,148.00 91,822,618.54
Co., Ltd. services
Changhong International Holdings (Hong Kong) Accept the
2,433,372.32
Co., Ltd. services
Accept the
Sichuan Jiahong Industrial Co., Ltd. 2,219,124.89 471,372.03
services
Accept the
Sichuan Changhong Electric Co., Ltd. 1,848,713.48 10,404,495.04
services
Accept the
Sichuan Hongwei Technology Co., Ltd. 1,630,024.98 4,108,738.76
services
Accept the
Sichuan Changhong Property Services Co., Ltd. 1,256,815.72 1,627,043.79
services
Sichuan Changhong Intelligent Manufacturing Accept the
637,456.72 884.96
Technology Co., Ltd. services
Accept the
Sichuan Hongxin Software Co., Ltd. 627,830.20 703,487.72
services
Sichuan Changhong Electronics Holding Group Accept the
410,018.80 711,931.57
Co., Ltd. services
Accept the
Guangdong Changhong Electronics Co., Ltd. 381,270.76 142,467.10
services
Sichuan Changhong International Travel Service Accept the
231,756.12 99,699.89
Co., Ltd. services
Sichuan Changhong Electronic Products Co., Accept the
124,574.71
Ltd. services
Sichuan Changhong Mold Plastic Tech. Co., Accept the
66,728.31 509,633.16
Ltd. services
Accept the
Sichuan Zhiyijia Network Technology Co., Ltd. 36,917.82 113,548.74
services
Sichuan Changhong International Hotel Co., Accept the
14,824.98 10,827.32
Ltd. services
Sichuan Aichuang Science & Technology Co., Accept the
13,211.15
Ltd. services
Accept the
Sichuan Changhong Jijia Fine Co., Ltd. 642,657.00
services
Sichuan Hongmofang Network Technology Co., Accept the
2,122.64
Ltd. services
Total 329,989,141.46 294,671,847.75
228
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
3. Purchase fuel and power
Related party Content Current Period Last Period
Sichuan Changhong Electric Co., Ltd. Accept fuel power 10,484,815.16 8,261,144.64
Sichuan Hongran Green Energy Co., Ltd. Accept fuel power 572,392.86 189,240.25
Guangdong Changhong Electronics Co., Ltd. Accept fuel power 520,124.75 463,030.92
Changhong Huayi Compressor Co., Ltd. Accept fuel power 202,230.10 188,715.05
Hefei Changhong New Energy Technology Co., Ltd. Accept fuel power 172,184.57 160,813.32
Sichuan Changhong Property Services Co., Ltd. Accept fuel power 12,564.80 6,680.80
Total 11,964,312.24 9,269,624.98
4. Sales of goods
Current Period Last Period
Related party Content (in 10 thousand (in 10 thousand
Yuan) Yuan)
Sichuan Zhiyijia Network Technology Co., Ltd. Sales of goods 328,665.84 179,508.62
CHANGHONG(HK)TRADINGLIMITED Sales of goods 13,687.72 37,764.29
Sichuan Changhong Mold Plastic Tech. Co., Ltd. Sales of goods 13,068.52 8,464.02
Changhong International Holdings (Hong Kong) Co.,
Sales of goods 10,567.62 3,122.61
Ltd.
Sichuan Changxin Refrigeration Parts Co., Ltd. Sales of goods 8,177.09 5,105.82
Changhong Europe Electric s.r.o Sales of goods 5,608.18 1,092.95
CHANGHONGELECTRIC(AUSTRALIA)PTY.LTD Sales of goods 5,310.94 5,137.25
Sichuan Changhong Jijia Fine Co., Ltd. Sales of goods 3,677.37 2,541.50
Changhong Ruba Electric Company (Private) Ltd. Sales of goods 2,356.10 258.73
Orion.PDP.Co.,ltd Sales of goods 1,985.69 1,049.00
Sichuan Changhong Electric Co., Ltd. Sales of goods 318.89 409.94
Sichuan Service Exp. Appliance Service Chain Co.,
Sales of goods 293.76 194.88
Ltd.
Hongyuan Ground Energy Heat Tech. Co., Ltd Sales of goods 202.96 2,365.21
CHANGHONG ELECTRIC MIDDLE EAST FZCO Sales of goods 143.65 446.95
Sichuan Tianyou Guigu Technology Co., Ltd Sales of goods 50.64
Chengdu Guigu Environmental Tech. Co., Ltd. Sales of goods 41.36 62.47
PT.CHANGHONGELECTRICINDONESIA Sales of goods 27.80 670.07
Lejiayi Chain Management Co., Ltd. Sales of goods 18.04 451.13
Sichuan Aichuang Science & Technology Co., Ltd. Sales of goods 16.47 24.33
Guangdong Changhong Electronics Co., Ltd. Sales of goods 10.62 7.79
Sichuan Changhong Minsheng Logistics Co., Ltd. Sales of goods 9.73 42.12
Mianyang Leyijia Tradeing Chain Co., Ltd. Sales of goods 9.25
Guangyuan Changhong Electronic Technology Co.,
Sales of goods 8.07 0.35
Ltd.
229
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Current Period Last Period
Related party Content (in 10 thousand (in 10 thousand
Yuan) Yuan)
Hefei Changhong Industrial Co., Ltd. Sales of goods 7.89 0.24
Sichuan Changhong Real Estate Co., Ltd. Sales of goods 1.96
Sichuan Changhong Device Technology Co., Ltd. Sales of goods 0.08
081 Electronic Group Co., Ltd. Sales of goods 0.08
Sichuan Changhong Gerun Environmental Protection
Sales of goods 418.11
Tech. Co., Ltd.
Sichuan Huafeng Enterprise Group Co., Ltd. Sales of goods 20.28
Sichuan Changhong Power Source Co., Ltd. Sales of goods 1.81
Sichuan Changhong New Energy Technology Co.,
Sales of goods 31.18
Ltd.
Total 394,266.32 249,191.65
5. Provide the services
Related party Content Current Period Last Period
Hongyuan Ground Energy Heat Tech. Co., Ltd Provide the services 216,981.14
Sichuan Aichuang Science & Technology Co., Ltd. Provide the services 254,071.82 40,367.92
Sichuan Changhong Minsheng Logistics Co., Ltd Provide the services 189,986.96
Guangdong Changhong Electronics Co., Ltd. Provide the services 116,398.34
Sichuan Changhong Jijia Fine Co., Ltd. Provide the services 94,798.00 138,484.44
Sichuan Changhong Mold Plastic Tech. Co., Ltd. Provide the services 87,808.26 48,637.53
081 Electronic Group Co., Ltd. Provide the services 47,230.97
Sichuan Huafeng Enterprise Group Co., Ltd. Provide the services 13,205.66 174,311.83
Sichuan Zhiyijia Network Technology Co., Ltd. Provide the services 12,600.00
Sichuan Changhong Electronic Products Co., Ltd. Provide the services 11,021.81
Sichuan Changhong Gerun Environmental Protection
Provide the services 9,433.96
Tech. Co., Ltd.
Chengdu Guigu Environmental Tech. Co., Ltd. Provide the services 8,874.24
Sichuan Changhong Precision Electronics Tech. Co.,
Provide the services 6,434.91
Ltd.
Sichuan Hongwei Technology Co., Ltd. Provide the services 1,440.00
Sichuan Changhong Electronics Holding Group Co.,
Provide the services -10,800.00
Ltd.
Sichuan Changhong Network Technology Co., Ltd. Provide the services -34,142.50
Sichuan Changhong Electric Co., Ltd. Provide the services -90,632.94 208,530.97
Sichuan Changhong Intelligent Technology Co., Ltd. Provide the services 547,177.50
Sichuan Changhong Intelligent Manufacturing
Provide the services 494,545.00
Technology Co., Ltd.
Sichuan Changhong Device Technology Co., Ltd. Provide the services 105,644.50
Sichuan Changhong New Energy Technology Co.,
Provide the services 113,853.33
Ltd.
230
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Related party Content Current Period Last Period
Total 934,710.63 1,871,553.02
6. Provide fuel power
Related party Content Current Period Last Period
Sichuan Changhong Mold Plastic Tech. Co.,
Provide fuel power 3,510,461.21 2,965,740.57
Ltd.
Sichuan Changhong Device Technology Co.,
Provide fuel power 310,921.71 361,054.22
Ltd.
Sichuan Changhong Jijia Fine Co., Ltd. Provide fuel power 76,952.28 65,789.86
Sichuan Changhong Minsheng Logistics Co.,
Provide fuel power 28,024.31 34,091.79
Ltd.
Sichuan Zhiyijia Network Technology Co.,
Provide fuel power 25,002.79 16,480.49
Ltd.
Changhong International Holdings (Hong
Provide fuel power 23,176.99
Kong) Co., Ltd.
Guangdong Changhong Electronics Co., Ltd. Provide fuel power 5,371.01 12,670.97
Sichuan Changhong Precision Electronics
Provide fuel power 5,186.20 4,085.08
Tech. Co., Ltd.
Total 3,985,096.50 3,459,912.98
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.
7. Related rental
(1) Rent out
Type of Leasing income in Leasing income in
Lessor Lessee
assets Current Period Last Period
Changhong Sichuan Changhong Mold Plastic Tech.
Apartment 215,400.00 249,003.66
Meiling Co., Ltd.
Changhong Sichuan Changhong Mold Plastic Tech.
Warehouse 143,182.65 173,480.38
Meiling Co., Ltd.
Changhong
Hefei Changhong Industrial Co., Ltd. Apartment 122,170.38 56,700.43
Meiling
Changhong Sichuan Zhiyijia Network Technology
Apartment 98,968.06 98,968.06
Meiling Co., Ltd.
Changhong Sichuan Changhong Minsheng
Apartment 92,000.16 69,201.18
Meiling Logistics Co., Ltd.
Changhong Sichuan Service Exp. Appliance
Apartment 79,200.00
Meiling Service Chain Co., Ltd.
Changhong Sichuan Changhong Jijia Fine Co., Ltd. Warehouse 77,419.25 66,900.76
231
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Type of Leasing income in Leasing income in
Lessor Lessee
assets Current Period Last Period
Meiling
Changhong
Sichuan Changhong Jijia Fine Co., Ltd. Apartment 63,200.00 3,417.92
Meiling
Changhong Sichuan Changhong Mold Plastic Tech.
Workshop 31,119.62 357,577.84
Meiling Co., Ltd.
Changhong Sichuan Changhong Precision
Apartment 21,600.00 9,864.00
Meiling Electronics Tech. Co., Ltd.
Changhong
Sichuan Changhong Jijia Fine Co., Ltd. Forklift 20,123.09 12,713.38
Meiling
Changhong Sichuan Aichuang Science &
Warehouse 18,759.84 16,227.34
Meiling Technology Co., Ltd.
Changhong Sichuan Changhong Minsheng
Office 15,800.16
Meiling Logistics Co., Ltd.
Changhong
Hefei Changhong Industrial Co., Ltd. Warehouse 3,237.74
Meiling
Changhong Sichuan Service Exp. Appliance
Forklift 2,400.00 4,800.00
Meiling Service Chain Co., Ltd.
Changhong Sichuan Ailian Science & Technology
Warehouse 952.34 1,343.10
Meiling Co., Ltd.
Changhong
Hefei Changhong Industrial Co., Ltd. Forklift 177.50
Meiling
Changhong
Sichuan Changhong Jijia Fine Co., Ltd. Workshop 134,544.22
Meiling
Changhong Sichuan Aichuang Science &
Forklift 2,532.50
Meiling Technology Co., Ltd.
Changhong
Sichuan Hongwei Technology Co., Ltd. Apartment 31,200.00
Meiling
Changhong
Sichuan Changhong Mold Plastic Tech.
Air- Workshop 2,962,527.42 2,962,527.42
Co., Ltd.
conditioner
Changhong
Air- Sichuan Changhong Jijia Fine Co., Ltd. Workshop 1,839,508.14 4,292,185.61
conditioner
Changhong
Sichuan Changhong Mold Plastic Tech.
Air- Equipment 672,368.04
Co., Ltd.
conditioner
Changhong
Air- Sichuan Changhong Jijia Fine Co., Ltd. Equipment 618,666.19
conditioner
Changhong
Air- Sichuan Changhong Electric Co., Ltd. Workshop 481,457.77 327,319.42
conditioner
Changhong
Chengdu Guigu Environmental Tech.
Air- Workshop 28,403.67 28,403.67
Co., Ltd.
conditioner
Changhong
Meeting
Air- Sichuan Changhong Electric Co., Ltd. 1,834.86
room
conditioner
Zhongshan Guangdong Changhong Electronics Office
22,485.99
Changhong Co., Ltd. building
Zhongshan Sichuan Changhong Mold Plastic Tech. 2# living
22,364.52 27,080.00
Changhong Co., Ltd. area
232
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Type of Leasing income in Leasing income in
Lessor Lessee
assets Current Period Last Period
Parts of the
Zhongshan Sichuan Changhong Minsheng office
22,148.58 16,422.70
Changhong Logistics Co., Ltd. building
rent-out
Zhongshan Sichuan Changhong Precision 2# living
21,000.00 25,400.00
Changhong Electronics Tech. Co., Ltd. area
Zhongshan Sichuan Changhong Device 2# living
3,735.44 10,861.40
Changhong Technology Co., Ltd. area
Zhongshan Guangdong Changhong Electronics 2# living
55,721.47
Changhong Co., Ltd. area
Jiangxi Sichuan Changhong Mold Plastic Tech.
Workshop 411,144.18 409,855.80
Meiling Co., Ltd.
Jiangxi Sichuan Changhong Minsheng Warehouse
6,857.14
Meiling Logistics Co., Ltd. Office
Zhongke Sichuan Changhong Minsheng
Workshop 783,911.94 1,310,400.00
Meiling Logistics Co., Ltd.
Ridian Sichuan Changhong Device
Workshop 1,087,270.76 764,656.24
Technology Technology Co., Ltd.
Ridian
Sichuan Hongwei Technology Co., Ltd. Workshop 47,314.29 45,257.14
Technology
Total 10,030,017.72 11,573,257.64
(2) Lessee of related parties
Leasing income
Leasing income in
Lessor Lessee Type of assets in Current
Last Period
Period
Sichuan Changhong Electronics Changhong
Staff dormitory 101,443.84
Holding Group Co., Ltd. Air-conditioner
Changhong Workshop,
Sichuan Changhong Electric Co., Ltd. 264,244.07
Air-conditioner Office
Guangdong Changhong Electronics Hongyuan
Staff dormitory 50,139.23 42,425.47
Co., Ltd. Ground Energy
Guangdong Changhong Electronics Zhongshan
Workshop 677,103.14 338,551.56
Co., Ltd. Changhong
Guangdong Changhong Electronics Zhongshan
Staff dormitory 67,231.64
Co., Ltd. Changhong
Mianyang
Sichuan Changhong Electric Co., Ltd. Workshop 1,630,727.51 1,766,436.48
Meiling
Sichuan Changhong Electronics Mianyang
Staff dormitory 4,363.60 25,087.32
Holding Group Co., Ltd. Meiling
Ridian
Sichuan Changhong Electric Co., Ltd. Staff dormitory 48,257.03
Technology
Guangdong Changhong Electronics Ridian
Staff dormitory 61,733.50 32,765.89
Co., Ltd. Technology
Sichuan Changhong Electric Co., Ltd. Meiling Group Office 885,487.38
Chengdu Changhong Electronic Hongmei
Office 310,722.13
Technology Co., Ltd. Intelligent
Total 2,525,510.82 3,781,208.97
8. Related guarantee
233
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Maximum guarantee
amount Completed
Secured party Sponsored party Start Date due
(Y/N)
(in 10 thousand
Yuan)
Changhong
Jiangxi Meiling 10,000.00 2020.04.09 2021.04.09 Y
Meiling
Changhong
ChanghongRuba 2,103.51 2019.12.23 2021.01.15 Y
Meiling
Changhong
ChanghongRuba 1,831.50 2020.12.16 2021.12.07 N
Meiling
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 Y
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 Ridian
4,000.00 2021.03.31 2022.03.31 N
Meiling Technology
Changhong Ridian
5,000.00 2021.06.09 2021.12.31 N
Meiling Technology
Changhong
Zhongke Meiling 2,000.00 2020.12.25 2021.09.26 N
Meiling
Changhong
Zhongke Meiling 3,000.00 2020.09.22 2021.09.22 N
Meiling
Changhong
Zhongke Meiling 2,000.00 2020.08.24 2021.08.24 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 Y
Meiling
Changhong
Zhongke Meiling 1,500.00 2020.06.01 2021.03.12 Y
Meiling
Changhong
Zhongke Meiling 500.00 2020.06.30 2021.03.15 Y
Meiling
Changhong
Zhongke Meiling 5,000.00 2021.05.24 2022.05.24 N
Meiling
Changhong
Zhongke Meiling 2,000.00 2019.12.30 2020.11.22 Y
Meiling
Changhong Zhongshan
20,000.00 2020.06.12 2021.03.10 Y
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 Y
Meiling Changhong
Changhong Zhongshan
5,500.00 2020.03.15 2021.03.15 Y
Meiling Changhong
Changhong Zhongshan
17,900.00 2020.04.14 2021.04.13 Y
Meiling Changhong
Changhong Zhongshan
20,000.00 2020.03.30 2021.03.30 Y
Meiling Changhong
234
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Maximum guarantee Completed
Secured party Sponsored party Start Date due
amount (Y/N)
Changhong Zhongshan
12,000.00 2020.04.28 2021.04.28 Y
Meiling Changhong
Changhong Zhongshan
10,000.00 2020.08.31 2021.08.31 Y
Meiling Changhong
Changhong Zhongshan
15,000.00 2020.07.03 2021.07.02 N
Meiling Changhong
Changhong Zhongshan
20,000.00 2021.04.08 2022.03.18 N
Meiling Changhong
Changhong Zhongshan
18,000.00 2021.03.29 2022.03.29 N
Meiling Changhong
Changhong Zhongshan
13,000.00 2021.03.03 2022.03.03 N
Meiling Changhong
Changhong Zhongshan
10,000.00 2021.05.25 2022.05.25 N
Meiling Changhong
Changhong Zhongshan
9,000.00 2021.03.15 2022.03.15 N
Meiling Changhong
Changhong Zhongshan
20,000.00 2021.03.30 2022.03.30 N
Meiling Changhong
Changhong Nonferrous
1,000.00 2020.03.20 2021.03.05 Y
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
Meiling Group 5,000.00 2021.03.05 2022.03.05 N
Meiling
Zhongke Meiling Anhui Tuoxing 500.00 2021.04.01 2022.03.31 N
Counter
guarantee:
Changhong
Jiangxi Meiling 10,000.00 2020.04.09 2021.04.09 Y
Meiling
Changhong
ChanghongRuba 2,103.51 2019.12.23 2021.01.15 Y
Meiling
Changhong
ChanghongRuba 1,831.50 2020.12.16 2021.12.07 N
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 Y
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
Ridian Changhong
4,000.00 2021.03.31 2022.03.31 N
Technology Meiling
Ridian Changhong
5,000.00 2021.06.09 2021.12.31 N
Technology Meiling
Changhong
Zhongke Meiling 2,000.00 2020.12.25 2021.09.26 N
Meiling
Zhongke Meiling Changhong 3,000.00 2020.09.22 2021.09.22 N
235
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Maximum guarantee Completed
Secured party Sponsored party Start Date due
amount (Y/N)
Meiling
Changhong
Zhongke Meiling 2,000.00 2020.08.24 2021.08.24 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 Y
Meiling
Changhong
Zhongke Meiling 1,500.00 2020.06.01 2021.03.12 Y
Meiling
Changhong
Zhongke Meiling 500.00 2020.06.30 2021.03.15 Y
Meiling
Changhong
Zhongke Meiling 5,000.00 2021.05.24 2022.05.24 N
Meiling
Changhong
Zhongke Meiling 2,000.00 2019.12.30 2020.11.22 Y
Meiling
Zhongshan Changhong
20,000.00 2020.06.12 2021.03.10 Y
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 Y
Changhong Meiling
Zhongshan Changhong
5,500.00 2020.03.15 2021.03.15 Y
Changhong Meiling
Zhongshan Changhong
17,900.00 2020.04.14 2021.04.13 Y
Changhong Meiling
Zhongshan Changhong
20,000.00 2020.03.30 2021.03.30 Y
Changhong Meiling
Zhongshan Changhong
12,000.00 2020.04.28 2021.04.28 Y
Changhong Meiling
Zhongshan Changhong
10,000.00 2020.08.31 2021.08.31 Y
Changhong Meiling
Zhongshan Changhong
15,000.00 2020.07.03 2021.07.02 N
Changhong Meiling
Zhongshan Changhong
20,000.00 2021.04.08 2022.03.18 N
Changhong Meiling
Zhongshan Changhong
18,000.00 2021.03.29 2022.03.29 N
Changhong Meiling
Zhongshan Changhong
13,000.00 2021.03.03 2022.03.03 N
Changhong Meiling
Zhongshan Changhong
10,000.00 2021.05.25 2022.05.25 N
Changhong Meiling
Zhongshan Changhong
9,000.00 2021.03.15 2022.03.15 N
Changhong Meiling
Zhongshan Changhong
20,000.00 2021.03.30 2022.03.30 N
Changhong Meiling
Nonferrous Changhong
1,000.00 2020.03.20 2021.03.05 Y
Metals Meiling
Changhong
Meiling Group 6,000.00 2020.03.26 2021.03.26 N
Meiling
Meiling Group Changhong 10,000.00 2020.12.30 2021.12.29 N
236
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Maximum guarantee Completed
Secured party Sponsored party Start Date due
amount (Y/N)
Meiling
Changhong
Meiling Group 5,000.00 2021.03.05 2022.03.05 N
Meiling
9. Assets transfer of related parties
Related party Type Current Period Last Period
Purchase/ Purchase and
Sichuan Changhong Intelligent
construction of fixed 5,762,952.63 769,469.03
Manufacturing Technology Co., Ltd.
assets
Purchase and
Sichuan Changhong Electric Co., Ltd. construction of fixed 5,595.00
assets
Purchase intangible
Sichuan Hongxin Software Co., Ltd. 141,509.43
assets
Sichuan Changhong Mold Plastic Tech.
Purchasing fixed assets 521,211.50
Co., Ltd.
Purchase and
Sichuan Huanyu Industrial Co., Ltd. construction of fixed 366,972.48 2,164,755.99
assets
Purchase and
Sichuan Hongcheng Construction
construction of fixed 1,950,244.22
Engineering Co., Ltd.
assets
Purchase and
081 Electronic Group Co., Ltd. construction of fixed 1,058,420.18
assets
Purchase intangible
Sichuan Changhong Electric Co., Ltd. 471,698.11
assets
Sichuan Zhiyijia Network Technology
Purchasing fixed assets 816,132.79
Co., Ltd.
Sichuan Changhong Jineng Sunshine
Purchasing fixed assets 42,348.02
Technology Co., Ltd.
Total 9,806,905.44 4,264,403.94
10. Other
Current Period (in 10 Last Period (in 10
Related party Content
thousand Yuan) thousand Yuan)
Yuanxin Financial Lease Financing business, financing
34,194.22 1,875.83
Co., Ltd. expenses and financial leasing
11. Related transaction with Changhong Finance Company
(1) Saving balance
Interest income from
Name of company Ending balance Opening balance bank saving in the
period
Changhong Meiling Co., Ltd. 1,455,040,471.60 1,860,047,247.52 29,842,699.24
237
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Interest income from
Name of company Ending balance Opening balance bank saving in the
period
Sichuan Changhong Air-conditioner Co.,
630,595,432.94 134,802,966.64 1,882,678.21
Ltd.
Zhongshan Changhong Electric Co., Ltd. 423,266,221.83 404,582,475.31 2,869,751.36
Zhongke Meiling Cryogenic Technology
216,790,954.84 141,336,330.05 3,596,177.24
Co., Ltd.
Hefei Changhong Meiling Life
89,509,414.70 566,299.32
Appliances Co., Ltd.
Changhong Meiling Ridian Technology
40,393,724.88 162,196,324.57 1,691,311.68
Co., Ltd.
Ground Energy Heat Pump Tech.
14,816,171.21 69,211,263.89 775,423.53
(Zhongshan) Co., Ltd.
Anhui Tuoxing Technology Co., Ltd. 10,114,495.37 10,243,055.56 134,772.07
Hebei Hongmao Household Appliance
166,356.39 15,657,360.37 108,917.55
Technology Co., Ltd
Hongyuan Ground Energy Heat Pump
25,126.44 114,826.06 300.38
Tech. Co., Ltd
Hefei Meiling Group Holdings Limited 12,575.02 3,742.21 7.28
Mianyang Meiling Refrigeration Co.,
50,979.44 50,871.36 108.08
Ltd.
Jiangxi Meiling Electric Appliance Co.,
9,565.26 9,544.98 20.28
Ltd.
Total 2,880,791,489.92 2,798,256,008.52 41,468,466.22
12. Borrowing: nil
13. Accounts receivable factoring: nil
(iii) Come and go balance with related parties
1. Receivable items
Ending balance Opening balance
Item Related party Bad debt Bad debt
Book balance Book balance
provision provision
Account Sichuan Zhiyijia Network
1,091,290,661.24 11,516.14 152,851,050.10 5,950.95
receivable Technology Co., Ltd.
Account CHANGHONG (HK)
109,551,244.01 74,561,075.45
receivable TRADING LIMITED
Changhong International
Account
Holdings (Hong Kong) 63,115,711.15 23,280,926.68
receivable
Co., Ltd.
Account Changhong Ruba Electric
48,036,662.75 2,524,954.64 46,262,313.51 3,664,544.64
receivable Company (Private) Ltd.
CHANGHONG
Account
ELECTRIC 40,846,257.34 82,523,745.73
receivable
(AUSTRALIA) PTY.LTD.
Account Changhong Europe
36,220,317.38 7,285,475.46
receivable Electric s.r.o
238
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Ending balance Opening balance
Item Related party Bad debt Bad debt
Book balance Book balance
provision provision
Account
Orion.PDP.Co.,ltd 16,160,376.81 1,365,471.85
receivable
Account Hongyuan Ground Energy
2,759,933.11 274,613.95 2,557,611.11 259,719.23
receivable Heat Tech. Co., Ltd
CHANGHONG
Account
ELECTRIC MIDDLE 635,699.68 1,641,684.42
receivable
EAST FZCO
Account Sichuan Changhong
585,639.57 18,640.40 1,648,021.88
receivable Electric Co., Ltd.
Account Sichuan Aichuang Science
572,239.19 1,235,293.51
receivable & Technology Co., Ltd.
Sichuan Service Exp.
Account
Appliance Service Chain 431,371.34 179,721.66
receivable
Co., Ltd.
Account Lejiayi Chain
421,391.12 11,198.27 752,700.75 13,309.44
receivable Management Co., Ltd.
Account Sichuan Changhong Mold
377,414.84 193,981.98
receivable Plastic Tech. Co., Ltd.
Account PT.CHANGHONG
278,000.00 703,520.00
receivable ELECTRIC INDONESIA
Account Sichuan Huafeng
13,998.00
receivable Enterprise Group Co., Ltd.
Sichuan Changhong
Account
Network Technology Co., 291,996.61
receivable
Ltd.
Sichuan Changhong
Account
Electronic Products Co., 375,287.92
receivable
Ltd.
Sichuan Changhong
Account
International Hotel Co., 20,166.00
receivable
Ltd.
Sichuan Changhong
Account
Minsheng Logistics Co., 12,173.16
receivable
Ltd.
Account Guangdong Changhong
3,507.01
receivable Electronics Co., Ltd.
Account Sichuan Changhong
paid in Intelligent Manufacturing 1,156,014.00 2,191,049.27
advance Technology Co., Ltd.
Account Sichuan Service Exp.
paid in Appliance Service Chain 64,685.49
advance Co., Ltd.
Account
Sichuan Zhiyijia Network
paid in 16,813.41
Technology Co., Ltd.
advance
Account Sichuan Changhong
paid in Minsheng Logistics Co., 366,287.00
advance Ltd.
Other CHANGHONG (HK)
1,773,143.47
receivable TRADING LIMITED
Other Sichuan Service Exp. 200,000.00 200,000.00
receivable Appliance Service Chain
239
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Ending balance Opening balance
Item Related party Bad debt Bad debt
Book balance Book balance
provision provision
Co., Ltd.
Other Hunan Grand-Pro
45,200.00 45,200.00
receivable Intelligent Tech. Company
Sichuan Changhong
Other
International Hotel Co., 39,550.00 39,550.00
receivable
Ltd.
Other Sichuan Changhong
2,657,173.57
receivable Electric Co., Ltd.
Other Sichuan Changhong Real
299,373.25
receivable Estate Co., Ltd.
Total 1,414,592,323.90 2,840,923.40 403,544,357.88 3,943,524.26
2. Payable items
Item Related party Ending balance Opening balance
Account
Sichuan Changhong Mold Plastic Tech. Co., Ltd. 233,841,328.64 44,726,533.64
payable
Account
Sichuan Changhong Jijia Fine Co., Ltd. 133,610,712.15 30,784,821.38
payable
Account
Changhong Huayi Compressor Co., Ltd. 105,879,312.73 24,556,917.25
payable
Account
Sichuan Changhong Electric Co., Ltd. 76,799,589.89 48,150,899.09
payable
Account
Sichuan Changxin Refrigeration Parts Co., Ltd. 57,033,970.42
payable
Account
Sichuan Changhong Package Printing Co., Ltd. 53,840,684.33 10,337,574.43
payable
Account Sichuan Aichuang Science & Technology Co.,
38,519,998.62 36,339,436.08
payable Ltd.
Account
Mianyang Highly Electric Co., Ltd. 25,685,924.67 10,035,029.02
payable
Account
Sichuan Ailian Science & Technology Co., Ltd. 12,939,462.28 3,067,909.39
payable
Account
Sichuan Changhong Electronic Products Co., Ltd. 11,062,588.35 2,388,369.91
payable
Account
Changhong Ruba Electric Company (Private) Ltd. 10,425,265.12 8,938,947.95
payable
Account Sichuan Changhong Precision Electronics Tech.
9,908,724.88 877,946.47
payable Co., Ltd.
Account Changhong International Holdings (Hong Kong)
6,713,126.24 1,502,240.80
payable Co., Ltd.
Account Sichuan Changhong Intelligent Manufacturing
5,504,701.91 962,930.89
payable Technology Co., Ltd.
Account
CHANGHONG (HK) TRADING LIMITED 3,052,516.27 3,052,516.27
payable
Account
Hefei Changhong Industrial Co., Ltd. 2,595,527.95 6,434,535.69
payable
Account
Guangdong Changhong Electronics Co., Ltd. 1,955,036.10 848,590.31
payable
240
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Item Related party Ending balance Opening balance
Account
Sichuan Changhong Minsheng Logistics Co., Ltd. 608,980.06 863,688.97
payable
Account Zhongshan Guanghong Moulding Technology
253,335.76
payable Co., Ltd.
Account Sichuan Service Exp. Appliance Service Chain
105,426.95 261,823.77
payable Co., Ltd.
Account
081 Electronic Group Co., Ltd. 61,292.73 136,168.13
payable
Account Sichuan Changhong Jineng Sunshine Technology
52,743.33 52,743.33
payable Co., Ltd.
Account Sichuan Changhong International Travel Service
44,678.00 50,552.00
payable Co., Ltd.
Account
Sichuan Hongxin Software Co., Ltd. 28,301.89
payable
Account
Sichuan Hongyu Metal Manufacturing Co., Ltd. 14,662.40
payable
Account Sichuan Changhong New Energy Technology Co.,
11,182.86 5,333.60
payable Ltd.
Account
Sichuan Hongwei Technology Co., Ltd. 3,225.71 3,225.71
payable
Account
Sichuan Changhong Power Source Co., Ltd. 1,870.82 1,870.82
payable
Account
Sichuan Changhong Device Technology Co., Ltd. 0.18
payable
Account
Sichuan Zhiyijia Network Technology Co., Ltd. 2,979,349.71
payable
Account
Hunan Grand-Pro Intelligent Tech. Company 433,594.69
payable
Account Sichuan Changhong Electronics Holding Group
6,687.52
payable Co., Ltd.
Contract Changhong International Holdings (Hong Kong)
3,124,634.35
liability Co., Ltd.
Contract
Lejiayi Chain Management Co., Ltd. 826,463.34 1,774,510.16
liability
Contract
Changhong Grand-Pro Technology Co., Ltd. 689,291.22
liability
Contract Sichuan Changhong Jiechuang Lithium Battery
684,955.75
liability Technology Co., Ltd.
Contract
Sichuan Changhong Electric Co., Ltd. 549,204.26 750,203.12
liability
Contract
Chengdu Guigu Environmental Tech. Co., Ltd. 329,148.67
liability
Contract
Sichuan Changhong Device Technology Co., Ltd. 59,317.08
liability
Contract
Sichuan Tianyou Guigu Technology Co., Ltd 52,176.99
liability
Contract
Sichuan Changhong Power Source Co., Ltd. 50,973.45
liability
Contract CHANGHONG ELECTRIC MIDDLE EAST
42,236.48
liability FZCO
Contract
Orion.PDP.Co.,ltd 16,471.68
liability
241
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Item Related party Ending balance Opening balance
Contract
Sichuan Changhong Minsheng Logistics Co., Ltd. 13,060.00 9,355.42
liability
Contract Sichuan Service Exp. Appliance Service Chain
12,939.29 12,736.12
liability Co., Ltd.
Contract Sichuan Changhong Gerun Environmental
5,090.51 5,090.51
liability Protection Tech. Co., Ltd.
Contract Sichuan Changhong Electronics Holding Group
5,080.00 5,080.00
liability Co., Ltd.
Contract
Hefei Changhong Industrial Co., Ltd. 3,903.44 4,022.06
liability
Contract
CHANGHONG (HK) TRADING LIMITED 936.52 945.91
liability
Contract Guangyuan Changhong Electronic Technology
442.48
liability Co., Ltd.
Contract
081 Electronic Group Co., Ltd. 22.61 25.55
liability
Contract
Hongyuan Ground Energy Heat Tech. Co., Ltd 108,490.57
liability
Contract
Sichuan Changhong Real Estate Co., Ltd. 2,154.65
liability
Other payable Yuanxin Financial Lease Co., Ltd. 112,566,076.90 44,276,743.76
Other payable Sichuan Changhong Minsheng Logistics Co., Ltd. 99,417,556.18 75,964,081.82
Other payable Sichuan Changhong Mold Plastic Tech. Co., Ltd. 1,763,861.48 1,700,295.88
Other payable Changhong Huayi Compressor Co., Ltd. 1,598,900.00 1,598,900.00
Sichuan Changhong Intelligent Manufacturing
Other payable 749,467.36 1,722,946.07
Technology Co., Ltd.
Other payable Sichuan Zhiyijia Network Technology Co., Ltd. 567,054.64 41,940.00
Sichuan Changhong Jineng Sunshine Technology
Other payable 500,000.00 500,000.00
Co., Ltd.
Other payable Sichuan Changhong Jijia Fine Co., Ltd. 419,345.69 400,500.00
Other payable Sichuan Changhong Electric Co., Ltd. 402,513.25 163,469.22
Other payable Sichuan Qiruike Technology Co., Ltd. 224,348.62
Other payable Sichuan Hongwei Technology Co., Ltd. 216,764.36
Other payable Hunan Grand-Pro Intelligent Tech. Company 200,000.00 250,000.00
Changhong International Holdings (Hong Kong)
Other payable 75,751.51
Co., Ltd.
Sichuan Changhong Electronics Holding Group
Other payable 62,721.60
Co., Ltd.
Other payable Sichuan Changhong Package Printing Co., Ltd. 57,232.00 50,000.00
Other payable Sichuan Changxin Refrigeration Parts Co., Ltd. 53,400.67 46,702.03
Other payable 081 Electronic Group Co., Ltd. 47,460.00 47,460.00
Other payable Guangdong Changhong Electronics Co., Ltd. 38,660.60
Other payable Chengdu Guigu Environmental Tech. Co., Ltd. 25,132.00
Sichuan Changhong Gerun Environmental
Other payable 10,000.00 10,000.00
Protection Tech. Co., Ltd.
Other payable Sichuan Changhong Property Services Co., Ltd. 1,404.40
242
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Item Related party Ending balance Opening balance
Sichuan Changhong Precision Electronics Tech.
Other payable 779.19 0.01
Co., Ltd.
Other payable CHANGHONG (HK) TRADING LIMITED 32,607.64
Other payable Sichuan Jiahong Industrial Co., Ltd. 23,100.04
Total 1,016,018,949.81 367,301,597.36
(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
XV. Events occurring after the balance sheet date
1. Important non-adjustment items: Nil
2. Profit distribution: Nil
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. Corre ction o f p re vio us period s and in flu enc e: Nil
2. Debt restru ctu ring: Nil
3. Asse ts rep lace ment: Nil
4. P ension p lan : Nil
5. Discon tinu ing ope ra tion: Nil
243
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
6. Branch in forma tion
In 10 thousand Yuan
Refrigerator, Small appliances
freezer Air- and kitchen and
Item Other division Salesin branch Total
Washing conditioner bathroom
machine division
Operation income 475,905.65 418,292.47 66,691.55 17,913.07 18,526.81 960,275.93
Including: foreign
472,547.83 418,257.71 61,455.05 8,015.34 960,275.93
trade income
Income from
transactions 3,357.82 34.76 5,236.50 9,897.73 18,526.81
between divisions
Operation expenses 470,187.22 426,277.65 64,799.76 15,512.41 18,495.81 958,281.23
Operation profit 5,718.43 -7,985.18 1,891.79 2,400.66 31.00 1,994.70
Total assets 1,227,098.25 545,367.60 63,719.06 21,087.72 179,711.75 1,677,560.88
Totalliability 733,958.71 435,817.98 43,757.67 7,738.11 30,742.34 1,190,530.13
Supplementary
information
Depreciation and
10,151.39 7,303.81 235.57 231.74 -13.09 17,935.60
amortization expenses
Capital expenditure 5,175.48 3,976.65 0.37 789.16 9,941.66
7. Other major transactions and events shows impact on investor’s decision-making: Nil
XVII. Notes to main items of financial statement of parent company
1. Account receivable
(1) Presented according to the bad debt accrual method
Ending balance
Category Book balance Bad debt provision
Book value
Amount Ratio Amount Ratio
Account receivable that withdrawal
1,653,473,613.80 87.76% 2,258,191.61 0.14% 1,651,215,422.19
bad debt provision by single item
Including: Related party payments 1,605,806,989.96 85.23% 1,907,017.88 0.12% 1,603,899,972.08
Account receivable with letter of
47,315,450.11 2.51% 47,315,450.11
credit
Account receivable with single
minor amount but withdrawal single 351,173.73 0.02% 351,173.73 100.00%
item bad debt provision
Account receivable withdrawal bad
230,537,906.56 12.24% 13,606,655.61 5.90% 216,931,250.95
debt provision by portfolio
Including: account receivable of
6,246,264.00 0.33% 1,249,252.80 20.00% 4,997,011.20
engineering customers
Receivables other than
224,291,642.56 11.91% 12,357,402.81 5.51% 211,934,239.75
engineering customers
Total 1,884,011,520.36 100.00% 15,864,847.22 0.84% 1,868,146,673.14
244
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
(Continued)
Opening balance
Category Book balance Bad debt provision
Book value
Amount Ratio Amount Ratio
Account receivable that
withdrawal bad debt provision by 858,063,066.45 83.09% 3,370,366.42 0.39% 854,692,700.03
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
38,179,742.75 3.70% 38,179,742.75
of credit
Account receivable with single
minor amount but withdrawal single 4,142,173.05 0.40% 414,217.31 10.00% 3,727,955.74
item bad debt provision
Account receivable withdrawal
174,658,647.31 16.91% 10,052,329.94 5.76% 164,606,317.37
bad 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
168,403,223.82 16.31% 8,802,064.34 5.23% 159,601,159.48
engineering customers
Total 1,032,721,713.76 100.00% 13,422,696.36 1.30% 1,019,299,017.40
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, 1 client involved.
2) Account receivable withdrawal bad debt provision by portfolio
A. Account receivable of engineering customers
Ending balance
Account age Bad debt
Book balance 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)
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
245
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Ending balance
Account age
Book balance Bad debt Accrual ratio (%)
provision
Within 3 months (3 months included) 197,888,607.96 1,978,886.08 1.00%
Over 3 months and within 6 months (6 7,226,815.70 722,681.57 10.00%
months included)
Over 6 months and within one year (One 8,026,061.58 1,605,212.32 20.00%
year included)
Over one year - within 2 years (2 years 5,664,401.49 2,832,200.75 50.00%
incl ded)
Over 2 years - within 3 years (3 years 1,336,668.72 1,069,334.98 80.00%
included)
Over 3 years 4,149,087.11 4,149,087.11 100.00%
224,291,642.56 12,357,402.81
Total
(2) By account age
Account age Ending balance
Within 3 months (3 months included) 1,775,034,371.14
Over 3 months and within 6 months (6 months
63,744,276.01
included)
Over 6 months and within one year (One year
15,973,988.88
included)
Over one year - within 2 years (2 years
17,736,404.67
included)
Over 2 years - within 3 years (3 years included) 7,361,457.13
Over 3 years 4,161,022.53
Total 1,884,011,520.36
(3) Bad debt reserves of the account receivable
Amount change in the period
Category Opening balance Collected or Resale or write- Ending balance
Accrual
switch back off
Bad debt
13,422,696.36 2,442,150.86 15,864,847.22
provision
Total 13,422,696.36 2,442,150.86 15,864,847.22
(4) Top 5 balance of account receivable aggregated by the debtor at end of the period amounted to
1,497,654,234.50 yuan, accounted for 79.49% of the receivables at balance of current period-end, the
bad debt provision amounted as 392,875.38 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
246
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
2. Other account receivable
Item Ending balance Opening balance
Other account receivable 46,277,319.42 49,093,918.57
Total 46,277,319.42 49,093,918.57
(1) By nature
Nature Ending book balance Opening book balance
Related party in consolidation statement 7,774,669.44 3,521,237.00
Related party not in consolidation statement 200,000.00 200,000.00
Loans of employee’s pretty cash 3,933,825.65 5,697,517.11
Cash deposit 2,020,000.00 6,507,745.28
Export rebates 32,398,824.33 32,281,664.19
Other 935,978.02
Total 46,327,319.42 49,144,141.60
(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 1 Jan.
223.03 50,000.00 50,223.03
2021
Book balance of other
account receivable in
— — — —
Current Period as at 30
Jun. 2021
--Transfer to the second
stage
--Transfer to the third
stage
--Reversal to the second
stage
--Reversal to the first
stage
Provision in Current
-223.03 - -223.03
Period
Reversal in Current
Period
Conversion in Current
Period
Write off in Current
Period
Other change
247
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
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 30 Jun.
50,000.00 50,000.00
2021
(3) By account age
Account age Ending balance
Within 3 months (3 months included) 38,545,952.18
Over 3 months and within 6 months (6 months
1,011,408.29
included)
Over 6 months and within one year (One year
1,278,507.31
included)
over one year-within two years (2 years included) 1,122,830.00
Over 2 years - within 3 years (3 years included) 1,062,091.90
Over 3 years 3,306,529.74
Total 46,327,319.42
(4) Top 5 balance of other account receivable aggregated by the debtor at end of the period
Proportion of the total Ending
period-end balance of balance of
Name of the unit Nature Ending balance Account age
other receivable bad debt
reserve
State Taxation
Bureau of Hefei
Export Within 3
Economic and 32,398,824.33 69.93%
rebates months
Technological
Development Zone
Hefei Changhong
Meiling Life Related party Within 3
4,394,963.87 9.49%
Appliances Co., payments months
Ltd.
Hefei Meiling
Related party
Electric Appliances 3,077,192.21 Over 3 years 6.64%
payments
Marketing Co., Ltd
Within 3
Dai Tianlei Petty cash 462,317.60 1.00%
months
Li Di Petty cash 350,711.37 Within 3 years 0.76%
Total — 40,684,009.38 — 87.82%
(5) There are no receivables involving government subsidies
(6) There are no other receivables derecognized due to the transfer of financial assets.
248
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
(7) There are no other receivables and the amount of assets and liabilities formed by continued
involvement
249
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
3. Long-term equity investments
(1) Classification of long-term equity investments
Ending balance Opening balance
Item
Book balance Impairment loss Book value Book balance Impairment loss Book value
Investment in subsidiaries:
Zhongke Meiling Cryogenic
42,652,000.00 42,652,000.00 42,652,000.00 42,652,000.00
Technology Co., Ltd.
Mianyang Meiling Refrigeration Co.,
95,000,000.00 95,000,000.00 95,000,000.00 95,000,000.00
Ltd.
Hefei Meiling Electric Appliances
54,900,000.00 54,900,000.00 54,900,000.00 54,900,000.00
Marketing Co., Ltd
Zhongshan Changhong Electric Co.,
304,856,419.37 304,856,419.37 304,856,419.37 304,856,419.37
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 91,082,111.12 91,082,111.12
Technology Co., Ltd.
Meiling CANDY Washing Machine
60,000,000.00 27,675,208.01 32,324,791.99 60,000,000.00 27,675,208.01 32,324,791.99
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 6,889,100.00 6,889,100.00
(Philippines) Inc.
Hefei Changhong Meiling Life
35,000,000.00 35,000,000.00
Appliances Co., Ltd.
Investment in associates:
250
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Ending balance Opening balance
Item
Book balance Impairment loss Book value Book balance Impairment loss Book value
Hefei Xingmei Assets Management
6,359,250.95 6,359,250.95 6,826,274.99 6,826,274.99
Co., Ltd.
Sichuan Zhiyijia Network
30,776,659.24 30,776,659.24 45,354,700.69 45,354,700.69
Technology Co., Ltd.
Total 1,881,745,978.47 27,675,208.01 1,854,070,770.46 1,861,791,043.96 27,675,208.01 1,834,115,835.95
(2) Investment in subsidiaries
Increased in Decreased in Provision forimpairment Ending balance of
Invested enterprise Opening balance Ending balance
Current Period Current Period losses inthe Period impairment
Zhongke Meiling Cryogenic
42,652,000.00 42,652,000.00
Technology Co., Ltd.
Mianyang Meiling Refrigeration Co.,
95,000,000.00 95,000,000.00
Ltd.
Hefei Meiling Electric Appliances
54,900,000.00 54,900,000.00
Marketing Co., Ltd
Zhongshan Changhong Electric Co.,
304,856,419.37 304,856,419.37
Ltd.
Sichuan Changhong Air-conditioner
955,600,437.79 955,600,437.79
Co., 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
91,082,111.12 91,082,111.12
Co., Ltd.
Hefei Changhong Meiling Life
35,000,000.00 35,000,000.00
Appliances Co., Ltd.
Meiling CANDY Washing Machine
60,000,000.00 60,000,000.00 27,675,208.01
Co., Ltd.
Hefei Meiling Wulian Technology Co.,
6,000,000.00 6,000,000.00
Ltd
251
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Increased in Decreased in Provision forimpairment Ending balance of
Invested enterprise Opening balance Ending balance
Current Period Current Period losses inthe Period impairment
CH-Meiling.International (Philippines)
6,889,100.00 6,889,100.00
Inc.
Total 1,809,610,068.28 35,000,000.00 1,844,610,068.28 27,675,208.01
(3) Investment in associates
Changes inCurrentPeriod
Adjustment Cash dividend Ending
Invested enterprise Opening balance Investment income Other Provision for Ending balance balance of
Additional Negative for other orprofit
recognizedunder equity impairment Other impairment
Investment Investment comprehensive announced to
equity change loss
income issued
Hefei Xingmei Assets Management Co.,
6,826,274.99 -467,024.04 6,359,250.95
Ltd.
Sichuan ZhiyijiaNetwork TechnologyCo.,
45,354,700.69 -14,578,041.45 30,776,659.24
Ltd.
Total 52,180,975.68 -15,045,065.49 37,135,910.19
252
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
4. Operation income, operation cost
(1) Operation income and operation cost
Current Period Last Period
Item
Income Cost Income Cost
Main business 3,102,350,117.09 2,860,557,418.34 2,453,463,713.88 2,260,946,436.99
Other business 873,401,787.20 841,056,783.21 760,500,119.30 761,172,953.16
Total 3,975,751,904.29 3,701,614,201.55 3,213,963,833.18 3,022,119,390.15
(2) Main business - Classified according to product
Current Period Last Period
Product
Operation income Operation cost Operation income Operation cost
Refrigerator, 2,809,476,859.57 2,589,201,634.89
2,201,687,822.75 2,028,605,037.68
freezer
Washing machine 232,248,515.69 216,526,918.33 102,710,982.12 103,454,823.52
Small household 55,241,125.67 49,594,600.28
appliances and
146,212,337.07 126,125,131.02
kitchen and
bathroom
Other 5,383,616.16 5,234,264.84 2,852,571.94 2,761,444.77
Total 3,102,350,117.09 2,860,557,418.34 2,453,463,713.88 2,260,946,436.99
(3) Main business - Classified according to region
Current Period Last Period
Region
Operation income Operation cost Operation income Operation cost
Domestic 1,756,300,378.04 1,652,622,816.92 1,322,226,066.74 1,332,014,226.07
Overseas 1,346,049,739.05 1,207,934,601.42 1,131,237,647.14 928,932,210.92
Total 3,102,350,117.09 2,860,557,418.34 2,453,463,713.88 2,260,946,436.99
Top five clients in sales revenue amounted as 1,692,183,177.25 yuan, a 42.56% in total operation
income.
5. Investment income
Item Current Period Last Period
Long-term equity investment income by cost method 2,754,000.00 69,912,000.00
Long-term equity investment income by equity method -15,045,065.49 2,738,300.44
Investment income obtained from disposal of Trading financial assets 46,948,848.62 3,755,039.20
Income from financial products 2,754,190.61 1,432,328.96
253
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Item Current Period Last Period
Total 37,411,973.74 77,837,668.60
XVIII. Approval of financial statement
The financial statement has already been approved from the board of directors of the Company for
reporting dated 16 August 2021.
254
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Supplementary information for financial statement
1. Non-recurring gains and losses for this period
Item Current Period Note
Gains and losses from disposal of non-current assets -736,583.34
Governmental subsidy reckoned into current gains/losses (not
including the subsidy enjoyed in quota or ration according to national 54,702,099.76
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
58,849,862.38
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
1,228,611.25
separate impairment test
Other non-operating income and expenses other than the above 5,629,332.53
Subtotal 119,673,322.58
Less: impact on income tax 17,645,671.62
Impact on minority shareholders’ equity (post-tax) 1,317,724.41
Total 100,709,926.55 —
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 0.76% 0.0356 0.0356
shareholders of the parent company
Net profit attributable to ordinary -1.31% -0.0608 -0.0608
shareholders of the parent company
after deduction of the non-recurring
gains/losses
255
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
Section XI. Documents available for Reference
I. Text of the Semi-Annual Report carrying the signature of the Chairman;
II. Financial statement carrying the signatures and seals of the Chairman, principal of the accounting works and
person in charge of accounting organ;
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.
18 August 2021
256
