长虹美菱股份有限公司
CHANGHONG MEILING CO., LTD.
二〇二一年年度报告
Annual Report 2021
CHANGHONG MEILING CO.,LTD. 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
2021 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
Shine Wing Certified Public Accountants (LLP) issued standard unqualified Auditors’ Report for the Company’s
Financial Report of 2021.
Major defects in internal control
□ Applicable √Not applicable
The Company had no major defects in internal control in the reporting period.
Risk warning of concerning the forward-looking statements with future planning involved in annual report
√ Applicable □Not applicable
Concerning the forward-looking statements with future planning involved in the Report, they do not constitute a
substantial commitment for investors, investors and the person concerned should maintain adequate risk
awareness, furthermore, differences between the plans, forecast and commitments should be comprehended.
Investors are advised to exercise caution of investment risks.
Investors are advised to read the full text of annual report, and pay particular attention to the following risk factors:
More details about the possible risks and countermeasures in the operation of the Company are described in the
report “XI. Prospects for the future development of the company” of “Section III. Management Analysis and
Discussion”, investors are advised to read the relevant content.
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CHANGHONG MEILING CO.,LTD. Annual Report 2021
Securities Times, China Securities Journal, Hong Kong Commercial Daily and Juchao Website (Juchao Website
(www.cninfo.com.cn)) are the media for information disclosure for year of 2022 that appointed by the Company.
All public information under the name of the Company disclosed on the above said media and website shall
prevail, and investors are advised to exercise caution.
Does the Company need to comply with disclosure requirements of the special industry: no
Profit distribution pre-plan or capitalizing of common reserves pre-plan deliberated by the Board in the reporting
period
√ Applicable □ Not applicable
Whether to increase the share capital with public reserve
□Yes √No
The profit distribution plan for year of 2021, that deliberated and approved by 16th session of the 10th BOD was:
take the total shares (on the registration date when implement the equity distribution plan for year of 2021) as the
base, distributed 0.5 yuan (tax included) bonus in cash for every 10-share hold by all shareholders, no share bonus
issued and no capitalizing of common reserves carried out.
The implementation of repurchase of domestically listed foreign shares (B share) was completed on February 18,
2022. And the cancellation of the repurchased shares are completed on March 2, 2022. Total share capital of the
Company comes to 1,029,923,715 shares after cancellation, and reduction of registration capital and amendment
of Article of Association still needs to be submitted for deliberation on Shareholders’ General Meeting.
Directors, supervisors and senior executives of the Company respectively signed a Written Confirmation Opinions
for 2021 Annual Report.
Supervisory Committee of the Company formed Written Examination Opinions for 2021 Annual Report.
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CHANGHONG MEILING CO.,LTD. Annual Report 2021
Documents Available for Reference
I.Financial statement carrying the signatures and seals of the Chairman, principal of the accounting works and
person in charge of accounting organ;
II. Original audit report carrying the seal of the CPA and signature & seal of the accountants;
III. Original documents of the Company and manuscripts of public notices that disclosed in the website designated
by CSRC in the report period;
The aforesaid documents are all available at headquarter of the Company. The Company would provide them
timely when CSRC and Shenzhen Stock Exchange require or the shareholders need consultation according to the
regulations and Articles of Association.
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CHANGHONG MEILING CO.,LTD. Annual Report 2021
Contents
Section I Important Notice, Contents and Interpretation 1
Section II Company Profile and Main Financial Indexes 6
Section III Management Discussion and Analysis 13
Section IV Corporate Governance 58
Section V Enviornmental and Social Responsibility 93
Section VI Important Events 100
Section VII Changes in shares and particular about shareholders 155
Section VIII Preferred Stock 165
Section IX Bonds 166
Section X Financial Report 167
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CHANGHONG MEILING CO.,LTD. Annual Report 2021
Interpretation
Items Refers to Contents
Company, The Company, Changhong
Refers to CHANGHONG MEILING CO.,LTD.
Meiling or Meiling Electric
Sichuan Changhong or controlling
Refers to Sichuan Changhong Electric Co., Ltd.
shareholder
Changhong Group Refers to Sichuan Changhong Electronics Holding Group Co., Ltd.
Hong Kong Changhong Refers to CHANGHONG (HK) TRADING LIMITED
Meiling Group Refers to Hefei Meiling Group Holdings Limited
Industry Investment Group Refers to Hefei Industry Investment Holding (Group) Co., Ltd.
Changhong Air-conditioner Refers to Sichuan Changhong Air-conditioner Co., Ltd.
Zhongke Meiling Refers to Zhongke Meiling Cryogenic Technology Co., Ltd.
Mianyang Meiling Refers to Mianyang Meiling Refrigeration Co., Ltd.
Jiangxi Meiling Refers to Jiangxi Meiling Electric Appliance Co., Ltd.
Ridian Technology Refers to Changhong Meiling Ridian Technology Co., Ltd.
Wulian Technology Refers to Hefei Meiling Wulian Technology Co., Ltd
Zhongshan Changhong Refers to Zhongshan Changhong Electric Co., Ltd.
Meiling Life Appliances Refers to Hefei Changhong Meiling Life Appliances Co., Ltd.
Changhong Huayi Refers to Changhong Huayi Compressor Co., Ltd.
Zhiyijia Company Refers to Sichuan Zhiyijia Network Technology Co., Ltd.
Shine Wing Refers to Shine Wing Certified Public Accountants (LLP)
CSRC Refers to China Securities Regulatory Commission
China Securities Regulatory Commission, Anhui Province Securities
Anhui Securities Bureau Refers to
Regulatory Bureau
SSE Refers to Shenzhen Stock Exchange
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CHANGHONG MEILING CO.,LTD. Annual Report 2021
Section II Company Profile and Main Financial Indexes
I. Company information
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)
Foreign name of the Company (if
CHANGHONG MEILING CO.,LTD.
applicable)
Abbr. of English name of the
CHML
Company (if applicable)
Legal representative Wu Dinggang
Registrations add. No. 2163, Lianhua Road, Economic and Technology Development Zone, Hefei
Code for registrations add 230601
The Company was registered in the Hefei Administration for Industry and Commerce on
November 25, 1992 with the address registered as Linquan Road, Hefei City (Meiling
Economic Development Zone); on March 13, 1997, registered address changed to No.48
Historical changes on the registration
Wuhu Road, Hefei instead of Linquan Road, Hefei City (Meiling Economic Development
address
Zone); on May 19, 2008, the address changed to No. 2163, Lianhua Road, Economic and
Technology Development Zone, Hefei from No.48 Wuhu Road, Hefei. Registered address
of the Company has not changed during the reporting period.
Offices add. No. 2163, Lianhua Road, Economic and Technology Development Zone, Hefei
Codes for office add. 230601
Website http://www.meiling.com
E-mail info@meiling.com
II. Person/Way to contact
Secretary of the Board Rep. of security affairs
Name Li Xia Pan Haiyun
Contact add. No. 2163, Lianhua Road, Economic and Technology No. 2163, Lianhua Road, Economic and
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CHANGHONG MEILING CO.,LTD. Annual Report 2021
Development Zone, Hefei Technology Development Zone, Hefei
Tel. 0551-62219021 0551-62219021
Fax. 0551-62219021 0551-62219021
e-mail lixia@meiling.com haiyun.pan@meiling.com
III. Information disclosure and preparation place
Website of the Stock Exchange where the annual
Securities Times, China Securities Journal, Hong Kong Commercial Daily
report of the Company disclosed
Media and Website where the annual report of the
Juchao website: http://www.cninfo.com.cn
Company disclosed
Room of secretary of the Board, 2/F , administrative center, Office building
Preparation place for annual report
of the Company
IV. Registration changes of the Company
Organization code Uniform social credit code: 9134000014918555XK
Changes of main business since listing (if applicable) No changes
1. In October 1993, after initial listing, controlling shareholder of the Company-- Hefei Meiling Industrial Corp. (renamed
as Hefei Meiling Group Co., dated 23 May 1994), executing controlling rights of the Company and management right of
the state-owned assets on behalf of Hefei State-owned Assets Management Office, named at that time;
2. From November 1997 to May 2003, controlling shareholder of the Company was Hefei Meiling Group Holding Co.,
Ltd. (established base on former Meiling Group Co.,, “Meiling Group” for short), an enterprise solely owned by the State;
mainly operating the state-owned capital in authorized from State-owned Assets Management Commission of Hefei City,
ensuring the maintenance and appreciation of state-owned assets;
3. On 29 May 2003, Meiling Group entered into “Equity Transfer Agreement” with Shunde GreenKel Enterprise
Development Co., ltd. (“GreenKel”), the 82,852,683 state-owned shares held by the Company was transfer to GreenKel.
Previous After transferring, GreenKel comes to the first largest shareholder of the Company.
changes 4. According to the spirit of “Bulletin of Treatment Opinions on GreenKel Company purchasing State-owned Assets
for Shares of Listed Company” (GZFCQ[2006] No.: 44) jointly issued from SASAC and Ministry of Finance in April 2006,
controlling Meiling Group took back the Meiling Electric 82,852,683 shares from GreenKel by procedures, which has been
shareholde transferred. In September 2006, relevant equity transfer agreement signed between the Meiling Group and GreenKel is
rs (if invalid, which was confirmed by the “Award” ((2006) HZZ No.: 104) issued from arbitration commission of Hefei; the
applicable) state-owned legal person’s 82,852,683 shares, held by GreenKel, should return to Meiling Electric, and relevant equity
consideration will pay to GreenKel by Meiling Group . On 29 December 2006, the 82,852,683 shares of Meiling Electric
were transfer to Meiling Group by GreenKel, and Meiling Group becomes the controlling shareholder of Meiling Electric
again.
5. On 18 May 2006 and 11 January 2007, Meiling Group entered into “Equity Transfer Agreement of Meiling Electric”
and “Supplementary Agreement of Equity Transfer of Meiling Electric” respectively with Sichuan Changhong and
Changhong Group, among the 123,396,375 shares held by Meiling Group, 82,852,683 shares were transferred
respectively to Sichuan Changhong and Changhong Group according to the transfer way regulated in agreement; of this
transferring, 45,000,000 shares (10.88% of total share capital of the Company) were transferred to Sichuan Changhong,
the first largest shareholder of the Company while 37,852,683 shares (9.15% of total share capital of the Company) were
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CHANGHONG MEILING CO.,LTD. Annual Report 2021
transferred to Changhong Group, the third largest shareholder of the Company.
6. On 29 October 2008, Changhong Group and Sichuan Changhong entered into “Equity Transfer Agreement of Hefei
Meiling Co., Ltd.”, the 32,078,846 restricted circulations A shares of Meiling Electric held by Changhong Group were
transferred by agreement to Sichuan Changhong. On 23 December 2008, the aforesaid equity transfer was approved by
“Reply on Matters of Equity held by State-owned Shareholders of Hefei Meiling Co., Ltd.” (GZCQ(2008) No.: 1413)
from SASAC; on 21 January 2009, the aforesaid transfer was registered for ownership transfer in Shenzhen Branch of
China Securities Depository and Clearing Corporation Limited.The first majority shareholder of the Company comes to
Sichuan Changhong.
7. From 12 November 2018 to 25 February 2019, Sichuan Changhong and its concerted action Hong Kong Changhong
totally buys 16,231,024 shares of the Company through the secondary market by bidding (including A-stock of
13,751,756 shares and B-stock of 2,479,268 shares), a 1.55% in total share capital of the Company. After stake enlarge,
Sichuan Changhong and its concerted action Hong Kong Changhong holds 281,832,434 shares of the Company in total, a
26.98% of the total share capital of the Company; of which, Sichuan Changhong directly holds 248,457,724 A-share of
the Company, a 23.79% in total share capital of the Company while Hong Kong Changhong holds circulation B-share of
the Company amounting as 33,374,710 shares, a 3.19% in total share capital of the Company.
8. Ended as 31 December 2021, Sichuan Changhong and its concerted action Hong Kong Changhong totally holds
281,832,434 shares of the Company, a 26.98% in total share capital of the Company; Sichuan Changhong directly holds
248,457,724 A-share of the Company, a 23.79% in total share capital of the Company while Hong Kong Changhong
holds circulation B-share of the Company amounting as 33,374,710 shares, a 3.19% in total share capital of the Company.
V. Other relevant information
(1) CPA engaged by the Company
Name of CPA Shine Wing Certified Public Accountants (LLP)
8/F, Block A, Fu Hua Mansion No.8 Chao Yang Men Bei da jie, Dong Cheng District, Beijing,
Offices add. for CPA
P.R.C
Signing Accountants Li Xifu, Wang Xiaodong
(2) Sponsor engaged by the Company for performing continuous supervision duties in reporting period
□ Applicable √ Not applicable
(3) Financial consultant engaged by the Company for performing continuous supervision duties in
reporting period
□ Applicable √ Not applicable
VI. Main accounting data and financial indexes
Whether it has retroactive adjustment or re-statement on previous accounting data
□ Yes √ No
Changes in the current
2021 2020 year over the previous 2019
year (+,-)
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CHANGHONG MEILING CO.,LTD. Annual Report 2021
Operating income (RMB) 18,032,957,501.44 15,388,050,229.67 17.19% 16,553,252,894.93
Net profit attributable to
shareholders of the listed company 51,898,388.84 -85,565,716.91 160.65% 56,441,479.14
(RMB)
Net profit attributable to
shareholders of the listed company
after deducting non-recurring gains
-140,217,633.26 -277,816,055.91 49.53% -50,454,661.39
and losses (RMB)
Net cash flow arising from
operating activities (RMB)
160,923,258.10 1,403,516,222.46 -88.53% 1,285,003,985.04
Basic earnings per share 0.0497 160.68%
-0.0819 0.0540
(RMB/Share)
Diluted earnings per share 0.0497 160.68%
-0.0819 0.0540
(RMB/Share)
Weighted average ROE
1.07% 2.80 percentage point
-1.73% 1.13%
s up
Changes at end of the
current year compared
Year-end of 2021 Year-end of 2020 Year-end of 2019
with the end of
previous year (+,-)
Total assets (RMB) 15,190,469,756.33 16,103,355,454.46 -5.67% 14,202,233,615.47
Net assets attributable to
shareholder of listed company 4,837,334,400.21 4,854,173,682.43 -0.35% 5,004,947,673.36
(RMB)
The cause of the accounting policy change and accounting error correction
□ Applicable √ Not applicable
The lower one of net profit before and after deducting the non-recurring gains/losses in the last three fiscal years
is negative, and the audit report of last year shows that the ability to continue operating is uncertain
□Yes √ No
The lower one of net profit before and after deducting the non-recurring gains/losses is negative
√Yes □No
Item 2021 2020 Note
Operating income (RMB) 18,032,957,501.44 15,388,050,229.67
It mainly refers to the income
from house rental, waste sales,
Amount deducted from
144,383,101.14 135,186,516.29 labor services, warehousing
operating income (RMB)
services and maintenance
services in the current period
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CHANGHONG MEILING CO.,LTD. Annual Report 2021
Operating income after
17,888,574,400.30 15,252,863,713.38
deduction (RMB)
VII. Accounting data difference under domestic and foreign accounting standards
(1) Difference of the net profit and net assets disclosed in financial report, under both IAS (International
Accounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable √ Not applicable
The Company has no difference of the net profit and net assets disclosed in financial report, under both IAS
(International Accounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles) in reporting
period.
(2) Difference of the net profit and net assets disclosed in financial report, under both foreign accounting rules and
Chinese GAAP (Generally Accepted Accounting Principles)
√ Applicable □ Not applicable
In RMB
Net profit attributable to shareholders of listed Net assets attributable to shareholders of listed
company company
Current period Previous period Ending amount Opening amount
Chinese GAAP 51,898,388.84 -85,565,716.91 4,837,334,400.21 4,854,173,682.43
Items and amount adjusted by foreign accounting rules
Foreign accounting rules 51,898,388.84 -85,565,716.91 4,837,334,400.21 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.
VIII. Quarterly main financial index
In RMB
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CHANGHONG MEILING CO.,LTD. Annual Report 2021
Q1 Q2 Q3 Q4
Operating income 4,130,121,476.44 5,472,637,868.85 4,312,251,172.73 4,117,946,983.42
Net profit attributable to shareholders
5,297,826.42 31,859,685.12 25,102,342.76 -10,361,465.46
of the listed company
Net profit attributable to shareholders
of the listed company after deducting -26,469,858.74 -37,082,556.27 -1,016,633.94 -75,648,584.31
non-recurring gains and losses
Net cash flow arising from operating
-968,522,457.80 380,026,340.98 403,766,756.43 345,652,618.49
activities
Whether there are significant differences between the above-mentioned financial index or its total number and the
relevant financial index disclosed in the company’s quarterly report and semi-annual report
□Yes √ No
IX. Items and amounts of non-recurring profit (gains)/losses
√ Applicable □ Not applicable
In RMB
Item 2021 2020 2019 Note
Found more in
“Income from assets
Gains/losses from the disposal of
disposal”,
non-current asset (including the write-off -133,214.72 -2,111,295.55 -9,537,945.52
“non-operation
that accrued for impairment of assets)
income &
expenditure”
Governmental subsidy calculated into
current gains and losses(while closely
related with the normal business of the Found more in “Other
Company, the government subsidy that income”,
103,024,250.74 99,043,859.77 103,813,820.02
accord with the provision of national “Non-operation
policies and are continuously enjoyed in line income”
with a certain standard quota or quantity are
excluded)
Gains/losses of fair value changes arising
from holding of the trading financial asset,
trading financial liability and investment ”Found more in
earnings obtained from disposing the trading “Income of fair value
105,811,461.63 123,242,542.42 27,685,917.00
financial asset, trading financial liability, changes”, “Investment
and financial assets available for sale, except income”
for the effective hedging business related to
normal operation of the Company
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CHANGHONG MEILING CO.,LTD. Annual Report 2021
Found more in
Switch back of the impairment for
“Account
receivables that has impairment test 3,245,314.13 5,061,635.85 1,936,952.67
receivable/other
independently
account receivable”
Found more in
Other non-operating income and expenses “Non-operation
4,867,985.38 2,434,283.11 1,070,165.28
other than the above income &
expenditure”
Less: impact on income tax 21,813,023.99 34,083,593.36 15,170,286.77
Impact on minority shareholders’
equity (post-tax)
2,886,751.07 1,337,093.24 2,902,482.15
Total 192,116,022.10 192,250,339.00 106,896,140.53
Details of other gains/losses items that meets the definition of non-recurring gains/losses:
□ Applicable √ Not applicable
There are no other gains/losses items that meet the definition of non-recurring gains/losses in the Company.
Explain 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
□ Applicable √ Not applicable
There are 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
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CHANGHONG MEILING CO.,LTD. Annual Report 2021
Section III Management Discussion and Analysis
I. Industry of the Company during the reporting period
1. Refrigerator industry
The refrigerator industry is one of the mature home appliance industries, and the active brands in the market are
relatively stable. From the overall data, 2021 was a satisfactory year for China's refrigerator market. In the face of
unfavorable factors such as repeated global pandemics and insufficient transportation capacity, in 2021, China's
refrigerator manufacturing industry has overcome multiple difficulties such as sharp fluctuations in raw material
prices, increased supply chain pressure, weak domestic demand, and declining product profit margins, and
increased the added value of products by optimizing product structure and cost and deeply digging the market, so
that the industry development had a steady rise. According to industry online data, China's refrigerator production
in 2021 was 86.096 million units, a year-on-year increase of 2.0%; total sales volume was 86.433 million units, a
year-on-year increase of 2.3%. It is worth noting that export is still the main driving force for the growth of the
refrigerator industry. In 2021, the export volume of China's refrigerator industry was 43.786 million units, a
year-on-year increase of 4.8%, effectively driving the growth of the industry's overall sales.
2.Air-conditioning industry
Air-conditioning products are the household appliances that are the most affected by macro economy and weather
factors. In the past two years, due to the continuous downturn in the real estate market and the impact of the
pandemic, the scale of the air-conditioning industry has continued to decline. In 2021, affected by factors such as
the frequent outbreaks of pandemic at home, rising raw material prices, dual control of energy efficiency, and too
much rainfall in the peak season of air-conditioning sales, the air-conditioning industry experienced a
phenomenon of "low peak season", resulting in a "cold year" to the air-conditioning market in 2021. According to
industry online statistics, in 2021, the total sales volume of China's household air conditioning industry was 150
million units, a year-on-year increase of 7.9%, and a year-on-year increase of 1.3% compared with 2019; of which
the domestic sales volume was 80 million units, a year-on-year increase of 5.5%, but a year-on-year decrease of
8.1% compared with 2019; exported 70 million units, a year-on-year increase of 11.0%, and a year-on-year
increase of 16.1% compared with 2019. After years of rapid growth in the air-conditioning industry, the number of
household ownership was high, and the industry demand has entered a new cycle of stock replacement. However,
consumers' demand for replacement of air-conditioning products has been released slowly, and the overall sales
volume will tend to be relatively stable in the next few years.
3.Washing machine industry
In 2021, the washing machine market has generally recovered to the level before the pandemic. According to the
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CHANGHONG MEILING CO.,LTD. Annual Report 2021
omni-channel aggregate data of All View Cloud (AVC), in 2021, omni-channel retail sales was 76.6 billion yuan, a
year-on-year increase of 7.3%, and retail sales volume was 37.18 million units, a year-on-year growth of 0.8%.
However, due to the pandemic, changes in consumer demand and consumption patterns, the major brands have
upgraded their products in terms of structure, attributes, form, function, price and demand. Integration of wash
and dry, large capacity, silent, sterilizing wash, and intelligent modules have become the main theme of upgrading
and innovation in subdivided tracks.
II.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. 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”, “2020 Top
10 Light Industry Technology Enterprises in China” and “National Leading Enterprises of Qualify in Home
Appliance Industry” 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". Furthermore, 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
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CHANGHONG MEILING CO.,LTD. Annual Report 2021
products in the industry by grasping the opportunities of refreshment, thin-wall, odourless, air cooling and energy
efficiency upgrades and effectively resolving the pain points of customers. Under the guidance of the “intelligent”
strategy, in recent year, the Company has released and listed a number of CHiQ series of smart refrigerators and
air-conditioning products, “M-Fresh” refrigerators, “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 May 2021, the company
released a new generation of "very thin" direct-drive front-loading washing machines, using innovative
technology, i.e. magnetic levitation ultra-thin DD motor, to realize the product concept of "direct drive is cleaner
and quieter", and the main performance indicators such as noise and energy efficiency have reached the advanced
level at home and abroad. In July 2021, the second-generation series of "M Fresh" products using "zero shock"
and "soft freeze" preservation technologies were launched globally, breaking through the restricted area of
refrigeration and freezing technologies of traditional refrigerators, and opening a brand new competition track to
soft freeze preservation technology in the refrigerator industry. In November 2021, the company released the latest
gas-heating water heater. By combining the invention patent technology of "a segmented burner and wall-hung
boiler", it has the function of "bathing scene customization" by person and scene, which can provide different
bathing modes to meet the diverse hot water needs of users. In the same month, the third-generation dual-engine
variable-frequency M-Twindrive series ultra-low temperature freezer with unique advantages such as "dual
independent systems, extreme uniformity, frequency conversion and energy saving" were released to the public,
realizing the "intelligent storage" and "intelligent acquisition" of samples, providing guarantee for the storage
security of samples again, and providing users with new options. In January 2022, the shared air conditioner for
the living room and dining room using the far-to-near soft & comfortable wind technology was released for the
first time, bringing users a comfortable home system that can be used for both living room and dining room.
Facing the future, the Company will implement the management policy of “one goal and three main lines” and
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.
During the reporting period, main income of the Company coming from refrigerator (freezer), air conditioner,
washing machine, small home appliances, kitchen & toilet products and biomedical etc., total amounting to
17.332 billion yuan, a 96.11% of the operating income.
III. Core Competitiveness Analysis
(1) Brand capacity
15
CHANGHONG MEILING CO.,LTD. Annual Report 2021
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
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 + good
comfort", 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 kitchen & bathroom and small household appliances,
the company focused on building an influential brand of water ecological appliances and operation services,
intensified the drinking water products, and researched and developed the integration of drinking water series
products with refrigeration and household fields to provide users with better products and services. In terms of
biomedical treatment, adhered to the development strategy of "based on the relevant diversification in the
biomedical field", focused on the three major business strategic layouts of life science, smart cold chain and
family health, and continued to promote product innovation, research and development, and quality improvement.
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, mother-infant refrigerator; “very-thin” series of washing
16
CHANGHONG MEILING CO.,LTD. Annual Report 2021
machine, AC thermostatic fresh air cabinet unit, fully dust-free hangers & sleep hangers, shared AC in the
guest-dining room“, 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, professional and intelligent 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, Australian Frozen 4-Star
Products, New European E-class Products, vertical display cabinets, DW-HL550 independent double temperature
zone double control ultra-low temperature low temperature freezer, etc. In particular, the "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 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. Deeply dug into the industry subdivision track,
the shared air conditioner for the living room and dining room adopted the far-to-near soft and comfortable wind
technology, of which the far wind is 20 meters away and the near wind is soft, allowing the living room and
dining room to share a warm space. The company was committed to accelerating the integration of the Internet of
Things and other technologies with biomedical treatment, created the industry's first dual-engine inverter
technology, and successively released the third-generation dual-engine inverter M-Twindrive series ultra-low
temperature freezer, strongly empowering storage safety. In addition, DW-HL680 and DW-HL850, with its
unique advantages of "dual independent systems, independent monitoring, extreme uniformity, frequency
conversion & energy saving, rapid cooling, 7 layers of protection, three-dimensional heat preservation, and
10-inch large screen", realized the "intelligent storage" and "intelligent acquisition" of samples, and led a new era
of intelligent samples storage. In short, the company was committed to creating a series of products with unique
value through continuous technological innovation and iteration, and bringing new consumption experience to
17
CHANGHONG MEILING CO.,LTD. Annual Report 2021
consumers.
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, fresh-keeping” as core technologies, and “refrigeration, new material and foam” 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.
(3) Operation capacity
The Company continues to carrying out bench-marking activities to improve the operation and management
standards and competitiveness of the Company. At the same time, the internal management capability has been
continuously improved by continuing to carry out the improvement work in "human efficiency, money efficiency
and material efficiency". The company established a hierarchical sharing system with clear goals, quantitative
indicators, performance-oriented performance appraisal and incentives to activate internal productivity. Taking
value chain management as the main line, continued to carry out value creation work, and enhanced the
company's competitiveness. At the same time, continuously improved the internal control system and improved
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 actively 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, quickly building an operation
management system with reasonable commercial inventory management as the core and a value management
system core with terminal retail price; through determined bench marking match, achieved products leading and
efficiency improvement and builds the capability for marketing system and development potential for long period
of time. In overseas markets, the company increased the investments in overseas marketing agencies, research and
development bases, production bases, etc., developed the market actively and cooperated with internationally
renowned household appliance brands and distributors, continued to optimize the customer structure and enhance
the product structure, accelerated the overseas branding, improve overseas brand awareness, in counter with the
18
CHANGHONG MEILING CO.,LTD. Annual Report 2021
overseas market segments, tailored marketing strategy to promoting the expanding driven by marketing.
IV. Main Business Analysis
(1) Refrigerator (cabinet) industry
In 2021，the company further strengthened the operation and management system centered on reasonable
commercial inventory. By driving the transformation of the marketing organization and improving the delivery
efficiency, the turnover of commercial inventory was greatly improved, and the number of days of commercial
inventory turnover decreased by 7 days on a year-on-year basis. By improving the flexible production capacity of
manufacturing, the manufacturing efficiency of refrigerator and freezer was improved.
Through the close combination of technology empowerment and product application, the company promoted the
in-depth research and capability improvement of core technologies, key technologies and hard-core technologies,
and the competitiveness of refrigerator and freezer products has been continuously strengthened. Focusing on the
product strategy of "high-quality products + popular products", the company continued to promote the "thin, fresh,
beautiful and intelligent" product layout of refrigerators, and further enhanced product competitiveness through
"precise positioning, strengthening hierarchy, revitalizing bases, and channel customization", and promoted
benign operation of products; strengthened the research on core & key technologies, the "zero shock" and "soft
freeze" technologies carried by "M Fresh Second Generation" new products once again lead the industry's
fresh-keeping technology, brought greater value to consumers and achieved good market benefits .
During the reporting period, the company set up the refrigerator cabinet business headquarters, focusing more on
core industries, optimizing the platform and improving efficiency. To be a solid product management body, let the
management body become the internal and external driving engine. Carried out the promotion of the whole value
chain benchmarking, achieved initial effects, and improved the profit. The implementation of quality
benchmarking has reduced the SCR and return and exchange rates; the implementation of R&D benchmarking has
shortened the development cycle and improved the success rate of new products. Refrigerator (cabinet) business
of the Company achieved revenue of approximately 7.725 billion yuan, an increase of 5.46 % on a y-o-y basis
during the reporting period.
(2) Air-conditioning industry
In the domestic market, focused on "regional focusing, benign operation, and model innovation", and adhered to
benchmarking; focused on standardized operation and management, reduced fees and improved efficiency;
continued to promote the construction of key regions and partner innovation models. Under the premise of
controllable value chain, carried out dislocated competition of online products to improved profit and loss,
accelerated offline channel transformation, focused on products with unique value, and activated the team. In the
overseas markets, upgraded sales channels and took efficiency as the starting point to reduce cost, improved
manufacturing efficiency and enhanced logistics capacity building, and continued to build its own R&D and
derivative capabilities. Air-conditioning business of the Company achieved revenue of approximately 6.867
billion yuan, an increase of 48.67 % on a y-o-y basis during the reporting period.
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CHANGHONG MEILING CO.,LTD. Annual Report 2021
(3) Washing machine industry
The company insisted on differentiated and dislocated competition in washing machine industry, and optimized
and adjusted the product structure. In the domestic market, grasped the market consumption trend, adhered to the
product and market leading strategy, the company launched the variable frequency direct drive drum with
"magnetic levitation" technology to further enhance product competitiveness. In the foreign markets, carried out
product innovation and research and development according to the living habits and using habits of different
countries, and strengthened the development of overseas markets. Washing machine business of the Company
achieved revenue of approximately 669 million yuan, an increase of 43.31 % on a y-o-y basis during the reporting
period.
(4) Kitchen & bathroom, small appliances
Focused on the core strategy of "water ecology" to refine the product layout and R&D, and strengthened the
products of drinking water, tea bar and gas hot water. According to the needs of users, the company carefully
cultivated the industry field, increased investment in R&D and maintained innovation vitality. At the same time, it
strengthened the integration of product functions, and launched the industry-leading intelligent voice tea bar
machine, instant hot tea bar machine and gas heating water heater with different bath modes. Kitchen & bathroom,
small appliances business of the Company achieved revenue of approximately 1.33 billion yuan, an increase of
16.37 % on a y-o-y basis during the reporting period.
(5)Biomedical
Focused on the strategic layouts for three major businesses of life science, smart cold chain and family health,
strengthened the depth of research and development, improved the research and development system, optimized
the research and development process, and formed sustainable technological innovation capabilities. Based on
market demand, went deep into fine management, promoted process standardization construction, and optimized
planning and scheduling management to improve productivity efficiency and product quality; adhered to market
orientation, improved system response capabilities, attracted outstanding talents, built talent training systems,
optimized management system construction, and improved operational efficiency. Biomedical business of the
Company achieved revenue of approximately 441 million yuan, an increase of 25.15 % on a y-o-y basis during the
reporting period.
(ii) Revenue and cost
1. Constitute of operation revenue
In RMB
2021 2020 Increase/de
Ratio in operation Ratio in operation crease y-o-y
Amount Amount
revenue revenue (+,-)
Total operation
18,032,957,501.44 100% 15,388,050,229.67 100% 17.19%
revenue
20
CHANGHONG MEILING CO.,LTD. Annual Report 2021
Manufacture of
household 17,331,645,754.46 96.11% 14,154,240,737.32 91.98% 22.45%
appliances
Other business 701,311,746.98 3.89% 1,233,809,492.35 8.02% -43.16%
Refrigerator, freezer 8,165,836,380.29 45.28% 7,677,640,685.10 49.89% 6.36%
Air-conditioning
6,867,304,359.29 38.08% 4,619,288,893.44 30.02% 48.67%
(AC)
Washing machine 668,996,516.82 3.71% 466,805,675.50 3.03% 43.31%
Small appliance and 1,330,315,557.62 7.38% 16.37%
1,143,165,497.06 7.43%
kitchen & toilet
Other products 299,192,940.44 1.66% 247,339,986.22 1.61% 20.96%
Other business 701,311,746.98 3.89% 1,233,809,492.35 8.02% -43.16%
Domestic 13,212,985,690.01 73.27% 10,398,533,564.21 67.58% 27.07%
Foreign 4,819,971,811.43 26.73% 4,989,516,665.46 32.42% -3.40%
Direct sales 701,311,746.98 3.89% 1,233,809,492.35 8.02% -43.16%
Distribution 17,331,645,754.46 96.11% 14,154,240,737.32 91.98% 22.45%
2. The industries, products, regions or sales model accounting for over 10% of the Company’s operating
revenue or operating profit
√Applicable □ Not applicable
In RMB
Increase/decrea
Increase/decrease Increase/decrease
Gross se of gross
Operating revenue Operating cost of operating of operating cost
profit ratio profit ratio
revenue y-o-y y-o-y
y-o-y
According to industries
Manufacture of
household 17,331,645,754.46 15,273,131,473.38 11.88% 22.45% 30.44% -5.39%
appliances
According to products
Refrigerator,
8,165,836,380.29 6,945,620,033.21 14.94% 6.36% 12.96% -4.98%
freezer
Air-conditioning 6,867,304,359.29 6,364,053,615.99 7.33% 48.67% 56.99% -4.91%
21
CHANGHONG MEILING CO.,LTD. Annual Report 2021
(AC)
Small appliance
and kitchen & 1,330,315,557.62 1,154,251,783.53 13.23% 16.37% 20.48% -2.96%
toilet
According to region
Domestic 12,521,627,236.27 10,779,025,843.09 13.92% 36.48% 45.41% -5.28%
Foreign 4,810,018,518.19 4,494,105,630.29 6.57% -3.41% 4.60% -7.15%
According to sales model
Distribution 17,331,645,754.46 15,273,131,473.38 11.88% 22.45% 30.44% -5.39%
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
3. Income from physical sales larger than income from labors
√ Yes □ No
Increase/decrease
Industries Item Unit 2021 2020
y-o-y (+,-)
10 thousand 2,291.75 9.84%
Sales volume 2,086.39
pieces/set
Manufacture of
10 thousand 2,255.60 7.23%
household Production 2,103.47
pieces/set
appliances industry
10 thousand 95.14 -27.53%
Inventory 131.29
pieces/set
Reasons for y-o-y relevant data with over 30% changes
□ Applicable √ Not applicable
4. Performance of the material sales contract and major procurement contracts that signed by the
Company up to the reporting period
□ Applicable √Not applicable
5. Constitute of operation cost
Industry classification
In RMB
2021 2020
Increase/decrease
Industries Item Ratio in Ratio in
Amount Amount y-o-y (+,-)
operation cost operation cost
22
CHANGHONG MEILING CO.,LTD. Annual Report 2021
Manufacture of
household Raw material 13,942,721,443.16 91.29% 10,753,506,155.27 91.84% -0.55%
appliances
Note: nil
6. Whether the changes in the scope of consolidation in Reporting Period
√ Yes □ No
More details can be seen in the report “VII. Changes in the scope of the merger” and “VIII. Interests in other
entities” of “Section X Financial Report”
7. Major changes or adjustment in business, product or service of the Company in Reporting Period
□ Applicable √ Not applicable
8. Major sales client and main suppliers
(1) Major sales client of the Company
Total top five clients in sales (RMB) 9,460,098,700.85
Proportion in total annual sales volume for top five clients 52.46%
Proportion of the related parties’ sales in total annual sales volume for
37.71%
top five clients
Information of top five clients of the Company
Serial Name Sales (RMB) Proportion in total annual sales
1 Client I 6,500,770,811.78 36.05%
2 Client II 2,031,064,265.55 11.26%
3 Client III 382,002,588.01 2.12%
4 Client IV 298,759,989.33 1.66%
5 Client V 247,501,046.18 1.37%
Total -- 9,460,098,700.85 52.46%
Other notes of main clients
□ Applicable √ Not applicable
(2) Main suppliers of the Company
Total purchase amount from top five suppliers (RMB) 3,089,801,023.03
Proportion in total annual purchase amount for top five suppliers 21.99%
Proportion of related party’s purchase in total annual purchase amount for top
15.91%
five suppliers
23
CHANGHONG MEILING CO.,LTD. Annual Report 2021
Information of top five suppliers of the Company
Serial Name Sales (RMB) Proportion in total annual purchase
1 Supplier I 853,794,687.69 6.08%
2 Supplier II 722,264,897.13 5.14%
3 Supplier III 536,878,449.60 3.82%
4 Supplier IV 420,239,492.52 2.99%
5 Supplier V 556,623,496.09 3.96%
Total -- 3,089,801,023.03 21.99%
Other notes of main suppliers
□ Applicable √Not applicable
(iii) Expenses
In RMB
Increase/dec
2021 2020 rease y-o-y Note of major changes
(+,-)
According to the “Q&A of the Rules Implementation”,
Sales expense 1,364,640,404.75 1,945,803,799.56 -29.87% relevant expenses as transportation costs are transferred
to “Operating costs”
Administrativ Due to the increase in salary and social security expenses
333,588,775.37 280,245,684.56 19.03%
e expense during the reporting period
Financial Due to the decrease in foreign exchange losses during the
-58,402,782.80 -5,529,984.84 -956.11%
expense reporting period
Due to the increase in R&D investment during the
R&D expense 465,891,096.09 380,638,922.91 22.40%
reporting period
(iv) Investment in R&D
√Applicable □Not applicable
Expected impact on the future
Projects Purpose Progress Goals to be achieved
development of the Company
Advanced the intelligence standards for
Updating the intelligent
Next-generation smart Improved the intelligence refrigerator products, increasing the price
service for refrigerator
refrigerator platform Completed standards for refrigerator and and profit amid the medium and high-end
and solve the pain points
technology enhanced the user experience products, enhanced the image of intelligent
for users
brand of the Company
Next-generation distribution Solve the problems on 50% reduction in time for Improving the distribution success for
Completed
technology for the smart wifi distribution in terms network distribution appliances such as intelligent refrigerator
24
CHANGHONG MEILING CO.,LTD. Annual Report 2021
terminal of multiple-steps, complex and washing machine, heighten products
interaction and time competitiveness and user satisfaction
duration
Optimized the dimensionality
Constructed the data
and reporting frequency of
collection and analysis Laying the groundwork for Big Data
Operational data collection the operation data for
platform with purpose of application, which will play a practical
& analysis platform products, completed the link
generating values for Completed value in user stickiness of the APP, quality,
construction for the smart verification of data
R&D, after-sales, R&D and planning, and bring the
terminal collection, storage, analysis
planning and quality of improvement in product competitiveness
and application of the
the products
platform
R& D on the technology of Completed
Develop a refrigerator The fresh meet can be Better to meet the needs of users and
frost-free refrigerator with and the
with constant temperature preserve for 33 days without enhance the market competitiveness of
constant temperature product is
micro-freezing room thawing refrigerators
micro-freezing room available
Research on the Sterilization rate of 90% or
conditions of food storage Completed more, antibacterial rate of
R&D of the mother-infant for mothers and babies, and the over 90%, freshness Enrich the function of Meiling products
refrigerator developed a special product is preservation effect vitamin C and meets the needs of users
refrigerator for mothers available retention rate ≥90%, the
and babies chlorophyll retention rate
≥85%
Completed
the research
on technical
Generating the method for
Reducing noises in all plans and Improving overall noise level of the
R&D of the noise control noise reduction mutation,
categories of the test frost-free refrigerators, cutting the
technology for refrigerator reducing the noise for typical
refrigerators, improving verification, complaint on noises and enhance the
in whole cooling cycle products during the whole
the user experience and entered market competitiveness
cooling cycle
the stage of
market
promotion
Forwarding the excavation of user needs
Solving the users pain
Go to the and improving the R&D & innovation
points in guesting-dining
mass Completed the development capability, expanding product usage
AC, realized the function
Develop new cabinet for production of a new cabinet platform for scenarios, enhance the additional value of
of faring winds and soft
CHiQ serials at the end of guesting-dining AC products while achieve the appearance and
winds to enhance the user
2021 functional differentiation, strength the
experience
sustainable competitiveness of the brand
Makes the smoke machine Research into a Completed Temperature sensing To achieved the selling points of
and stove react in chain technology that enables the technology allows the hood differentiated products and enhances the
25
CHANGHONG MEILING CO.,LTD. Annual Report 2021
through temperature sensing the smoke machine and development to adjust the gears price premium under the technology,
technology stove react in chain on May 17, automatically and react in meanwhile, it also meets the needs of
through temperature 2021 and chain with the stove, and not smoking degreasing for users and won the
sensing technology. To conducted a limited to any brand of customer praise. And it serves as a good
adjust the air volume of product cookers. model for the Company to increase the
the hood by detecting the launch. R&D investment in the future.
change pattern of
temperatures in the pot
Research into a gas
cooker with heavy fire,
the core technology is a Completed
multi-burner system: the
high-efficiency air intake development
A kind of stove has 7 cavity Zero-second start, Create a special product to improve the
and better premixing on May 27,
and multi-stove with heavy instantaneous ignition and image of the Company’s products and
effect; 7 independent 2021 and
fire multi-burner 7 cavity burner upgrading the products
splitter on the hear makes conducted a
the flame contact area product
with bottom of the pot is launch.
larger and the fire is more
powerful
With the arrival of the era
of internet of everything,
on basic water heating
function, adding WiFi
intelligent control to the
electric heater, and by The project
Enable the users to better
using the closed loop of was
operate electric heater, and Accumulate the living habits from users,
human-cell phone-electric completed
improve the experience of improve brand’s reputation for smart home
Changhong intelligent cloud heater, improving the on June 23,
using the heater in process of appliances, and provide reference for
electric heater user’s water experience 2021 and the
use, shorten the heating time upgrading and optimizing the smart
and efficiency & quality product
and improve the efficiency of connection in whole house in the future
of life. Intelligence of the launch was
life
electric heater is conducted
integrated into the
intelligent cloud, achieved
the interconnection in the
whole house through
intelligent cloud.
Develop a water purifier Complete Flow rate of the pure water Performance of the product reaches the
to solve the current the approval reached 2.5L/min or more; forefront of the industry and enhancing the
High-flux intelligent water
common problems as low on July 15, water efficiency achieved the status of the water purification products in
purifier with
flow and not knowing 2021 and on national first-class water the industry; notifying the consumers to
when to replace the November efficiency; analyzed the water replace the cartridge by core reminder,
26
CHANGHONG MEILING CO.,LTD. Annual Report 2021
cartridge, the 28, 2021 the consumption intelligently and increase secondary service income from
high-performance water product reminder the core using the special cartridge of the Company
purifier is meets the needs launch was replacement.
of high-flow during usage conducted
and reminder users to
change the core
intelligently according to
the condition of use
Realizing the heating Resonate with human body
Project
technology based on infrared temperature and enhance the
R&D the heating products completed in Increase the market share of electric
generation through polymer activity of water molecules in
for northeast market October heaters in northern
coating on micro-crystalline the body to better absorb heat
2021
glass substrates radiation energy
Develop a tea bar machine Completion
control by voice instead of the
R&D on voice-recognition controlling by users, and development Voice recognition success Improving the product differentiation and
tea bar machine enhance the product and launch rate of over 95% profitability
differentiation and in March
competitiveness 2021
Technology development of
Market demand of
the ground source heat pump Completed Mass-production Growth in sales revenue and profits
coal-to-electricity
products
Technology development of Market demand of the
the water machine and water coal-to-electricity and Completed Mass-production Growth in sales revenue and profits
heater retailing
Technology development of Market demand of
Completed Mass-production Growth in sales revenue and profits
the heaters products coal-to-electricity
Technology development of Market order
Completed Mass-production Growth in sales revenue and profits
the home AC products requirements
Some
projects are
Technology development of Market order demand and completed Some products have been
Growth in sales revenue and profits
the special AC products future market expectations and other mass-produced
are under
development
Distribution technology Continuous optimization
Add the new BT distribution Ensuring the the Company remains at the
application of the Wi-Fi on on the second-generation
Completed and optimized single Wi-Fi leading edge of the industry in distribution
third-generation intelligent distribution network
distribution network technology
white goods technology
R&D personnel
2021 2020 Change proportion
27
CHANGHONG MEILING CO.,LTD. Annual Report 2021
Number of R&D personnel
1312 1431 -8.32%
(person)
Proportion of R&D personnel 13.04% 19.62% 6.58 percentage points down
Educational background —— —— ——
Undergraduate 844 824 2.43%
Masters 99 101 -1.98%
Age composition —— —— ——
Under 30 337 313 7.67%
30~40 473 585 -19.15%
Investment of R&D
2021 2020 Change proportion
Investment for R&D (RMB) 623,553,400.81 556,253,003.33 12.10%
R&D investment/Operating
3.46% 3.61% 0.15 percentage points down
revenue
Capitalization of R&D
185,278,347.99 134,284,644.90 37.97%
investment (RMB)
Capitalization of R&D
29.71% 24.14% 5.57 percentage points up
investment/R&D investment
Reasons and effects of significant changes in composition of the R&D personnel
□Applicable √ Not applicable
Reasons for significant changes in the proportion of total R&D investment in operating revenue from the previous year
□Applicable √ Not applicable
Reasons and rationality of the major changes of the capitalization rate of R&D investment
√Applicable □ Not applicable
The Company paid much attention to the technology development and increased the investment in R&D during the reporting period
(v) Cash flow
In RMB
Item 2021 2020 Increase/decrease y-o-y (+,-)
Subtotal of cash in-flow from operation
activity
19,122,732,939.87 16,120,150,110.69 18.63%
Subtotal of cash out-flow from
operation activity
18,961,809,681.77 14,716,633,888.23 28.85%
Net cash flow from operation activity 160,923,258.10 1,403,516,222.46 -88.53%
Subtotal of cash in-flow from
investment activity
2,089,320,180.25 1,171,001,295.31 78.42%
28
CHANGHONG MEILING CO.,LTD. Annual Report 2021
Subtotal of cash out-flow from
investment activity
2,071,396,229.61 1,801,306,139.22 14.99%
Net cash flow from investment activity 17,923,950.64 -630,304,843.91 102.84%
Subtotal of cash in-flow from financing
activity
1,700,242,527.68 2,049,754,910.57 -17.05%
Subtotal of cash out-flow from
financing activity
2,450,727,546.66 1,748,483,992.86 40.16%
Net cash flow from financing activity -750,485,018.98 301,270,917.71 -349.11%
Net increased amount of cash and cash
equivalent
-585,334,883.53 1,039,722,339.59 -156.30%
Main reasons for y-o-y major changes in aspect of relevant data
√Applicable □ Not applicable
Major changes in net cash flow from operation activity mainly because the cash paid for good procurement and received services
during the period increased from a year earlier.
Major changes in net cash flow from investment activity mainly because the cash received from the recovery of investment increased
from a year earlier.
Major changes in net cash flow from financing activity mainly because the cash paid for debt services increased from a year earlier.
Explanation on reasons for the significant differences between the net cash flow arising from operation activities in the Period and
net profit of last year
√Applicable □ Not applicable
Mainly because at end of the period, inventory and operating payable decreased from the beginning of the year.
V. Analysis of the non-main business
√Applicable □ Not applicable
In RMB
Whether be
Ratio in
Amount Note sustainable
total profit
(Y/N)
Gains on delivery of the forward foreign exchange contracts
Investment income 128,963,968.59 144.07% N
in the period
Gains/losses from fair Losses on the forward foreign exchange contracts in the
value changes
-3,133,939.42 -3.50% N
period
Provision for decline in value of inventories and impairment
Asset impairment -57,484,042.03 -64.22% N
of intangible assets in the period
Non-operation income 10,022,053.88 11.20% Income from fines received in the period N
Non-operation 5,154,068.50 5.76% Loss on retirement of the non-current assets in the period N
29
CHANGHONG MEILING CO.,LTD. Annual Report 2021
expenditure
Credit impairment Provision for impairment loss on account receivable in the
-20,983,896.93 -23.44% N
losses period
VII. Analysis of assets and liability
(i) Major changes of assets composition
In RMB
Year-end of 2021 Year-begin of 2021 Ratio
Ratio in Ratio in changes( Note of major changes
Amount Amount
total assets total assets +,-)
Mainly due to the decrease in net cash flow
Monetary fund 5,938,823,396.21 39.10% 6,594,786,789.98 40.93% -1.83% arising from financing activities in the
period
Mainly due to the increase in operation
Account receivable 1,440,874,691.28 9.49% 1,130,275,780.66 7.01% 2.48%
revenue in the period
Mainly due to the increase in sales in the
Inventory 1,356,357,419.80 8.93% 1,715,354,951.43 10.65% -1.72%
period
Investment real
estate
53,149,934.45 0.35% 53,888,462.00 0.33% 0.02%
Long-term equity Mainly due to the increase in earnings from
investment
86,631,660.53 0.57% 76,982,822.38 0.48% 0.09%
investment for joint venture in the period
The increase in percentage due to the
Fix assets 2,303,122,699.92 15.16% 2,391,859,440.31 14.84% 0.32%
decline of total assets in the period
Construction in The construction in progress transferred to
progress
98,469,862.45 0.65% 60,775,088.96 0.38% 0.27%
fixed assets declined in the period
Resulted by the implementation of new
Right-of-use assets 45,367,918.31 0.30% 9,818,834.44 0.06% 0.24%
leasing standards in the period
Due to the repayment of short-term
Short-term loans 622,874,652.77 4.10% 1,336,209,050.55 8.29% -4.19%
borrowings in the period
Contract The increase in percentage due to the
515,004,115.23 3.39% 522,550,891.28 3.24% 0.15%
liability decline of total assets in the period
Due to the repayment of long-term
Long-term loans 168,000,000.00 1.11% 188,231,439.30 1.17% -0.06%
borrowings in the period
Resulted by the implementation of new
Lease liability 33,225,912.15 0.22% 4,783,483.43 0.03% 0.19%
leasing standards in the period
Foreign assets account for a relatively high proportion
□Applicable √Not applicable
(ii) Assets and liability measured by fair value
30
CHANGHONG MEILING CO.,LTD. Annual Report 2021
√Applicable □ Not applicable
In RMB
Devaluat
Accumulativ Amount
ion of
Changes of fair e changes of of Sales in
Amount at the withdra Amount at end
Items value gains/losses fair value purchase the Other changes
beginning period wing in of the period
in this period reckoned in the period
the
into equity period
period
Financial assets
1.Trading financial assets
(derivative financial assets 47,242,339.07 -29,245,252.88 17,997,086.19
excluded)
2. Receivable financing 1,632,388,702.83 175,720,598.73 1,808,109,301.56
3. Other non-current
548,148,931.34 33,831,509.36 581,980,440.70
financial assets
Subtotal of financial assets 2,227,779,973.24 4,586,256.48 175,720,598.73 2,408,086,828.45
Above total 2,227,779,973.24 4,586,256.48 175,720,598.73 2,408,086,828.45
Financial liabilities 4,584,076.51 7,720,195.90 12,304,272.41
Other changes:
Other changes in the financing of accounts receivable were that the company reclassified the bills receivables that both aimed at
collecting contractual cash flow (collection) and selling (endorsed or discounted) into accounts receivable financing during the
current period.
Whether there have major changes on measurement attributes for main assets of the Company in report period or
not
□Yes √ No
(iii) Assets right restricted ended as reporting period
Ended as the reporting period, the Company has no major assets been closed down, detain, freeze or pledge and
guarantee. As for other assets have restriction on rights found more in relevant content of “60. Assets with
restricted ownership or use rights” in “VI. Note of consolidate financial statement” carried under Section X.
Financial Report
VII. Investment analysis
(i) Overall situation
√Applicable □ Not applicable
Investment in the same period of last year
Investment in the reporting (RMB) Changes
( RMB)
31
CHANGHONG MEILING CO.,LTD. Annual Report 2021
50,000,000.00 662,169,149.17 -92.45%
(ii) The major equity investment obtained in the reporting period
√Applicable □ Not applicable
32
CHANGHONG MEILING CO.,LTD. Annual Report 2021
In RMB
Whe
ther
Ter Date of Index of
Nam Metho Capi invo
m of Status as of Expect Current disclosure disclosure
e of d of Amount of Shareholdi tal Type of lved
Principal business Partners inve the balance ed investment profit (if (if
inve invest investment ng ratio sour products in a
stme sheet date return and loss applicable applicable
sted ment ces laws
nt ) )
uit(
Y/N)
Research and sales of the household electric appliances,
non-electric household appliances, gas stove, gas water heaters,
Hefe Ningbo
gas boilers, fast heating electric water heater (electric heating
i Honglin
wall-hung furnace), heat accumulating type series electric heaters, Contributed
Cha g
direct heating series electric heater; kitchen and toilet furniture, R&D and investment Juchao
ngho Enterpri
audio-visual equipment, radio and television equipment, sales of of 35 Website:htt
ng se
computers, communications and other electronic equipment , household million yuan p://Juchao
Meil Newly Manage Lon Not
interior decoration materials, general equipment, water Own appliances, in the Website
ing establi 35,000,000 70% ment g-ter applic 21,255,622.60 N 2020-12-12
purification equipment, luggage, personal care and personal fund kitchen period. All (www.cninf
Life shed Partners m able
hygiene items; health care products, massage equipment and appliances and capital o.com.cn)(
Appl hip
hardware department; software and information technology small home contribution Notice No.:
ianc (Limited
services; business management consulting services; sales of appliances has been 2020-097)
es Partners
second and third types of medical equipment ; goods and completed
Co., hip)
technology import and export. (the import & export of goods and
Ltd.
technologies prohibited by the state or involving administrative
examination and approval is excluded)
Anh Class II medical equipment production; Class III medical Lon R&D, Remaining 5 Juchao
Newly Not
ui equipment production; Class III medical equipment operation; Own
establi 10,000,000 63.2683% N/A g-ter production million yuan
applic -1,299,892.14 N 2019-04-20
Website:htt
Tuox Class III medical equipment leasing; Electrical installation fund
m and sales of was p://Juchao
shed able
ing services; Labor dispatch services (projects subject to approval the cryogenic contributed Website
33
CHANGHONG MEILING CO.,LTD. Annual Report 2021
Scie according to law, business activities can only be carried out after refrigeration in the (www.cninf
nce approval by relevant departments); General items: Class I equipment period, and o.com.cn)(
and medical equipment production; Class I medical equipment sales; all capital Notice No.:
Tech Class II medical equipment sales; Smart home consumer contribution 2019-025)
nolo equipment sales; Metal product research and development; Metal has been
gy product sales; Metal surface treatment and heat treatment completed
Co., processing; Non-ferrous metals rolling processing; Metal
Ltd. processing machinery manufacturing; Software development;
note Technology research and development of the Internet of Things;
1 Software sales; Technology services, technology development,
technology consultation, technology exchange, technology
transfer, technology promotion; New car sales; Refrigeration and
air conditioning equipment sales; Refrigeration and air
conditioning equipment manufacturing; Information technology
consulting services; Information system operation and
maintenance services; Internet sales (except for the sale of
products that require licensing); Intellectual property services
(except patent agency services); General cargo warehousing
services (excluding hazardous chemicals and other items that
require approval); Low-temperature warehousing (excluding
hazardous chemicals and other items that require approval);
Repair of special equipment; Import and export of goods; Leasing
of Class II medical equipment; Leasing management services of
small and micro passenger car; Machinery and equipment
leasing; Non-residential real estate leasing; Leasing of land use
right (except for licensing business, can independently operate
projects that are not prohibited or restricted by laws and
regulations).
Anh Class I medical equipment production; Class I medical equipment Newly Own Lon R&D, Contributed Not Juchao
10,000,000 63.2683% N/A -791,720.20 N 2021-3-03
ui sales; Class II medical equipment sales; Smart home consumer establi fund g-ter manufacturing investment applic Website:htt
34
CHANGHONG MEILING CO.,LTD. Annual Report 2021
Ling' equipment sales; Software development; Metal product research shed m and sales of of 10 able p://Juchao
an and development; Metal product sales; Metal surface treatment the medical million yuan Website
Med and heat treatment processing; Non-ferrous metals rolling equipment in the (www.cninf
ical processing; Metal processing machinery manufacturing; period. o.com.cn)(
Equi Technology research and development of the Internet of Things; Notice No.:
pme Software sales; Technology services, technology development, 2021-008)
nt technology consultation, technology exchange, technology
Co., transfer, technology promotion; New car sales; Refrigeration and
Ltd. air conditioning equipment sales; Refrigeration and air
note2 conditioning equipment manufacturing; Information technology
consulting services; Information system operation and
maintenance services; Internet sales (except for the sale of
products that require licensing); Intellectual property services
(except patent agency services); General cargo warehousing
services (excluding hazardous chemicals and other items that
require approval); Low-temperature warehousing (excluding
hazardous chemicals and other items that require approval);
Repair of special equipment; Import and export of goods; Leasing
of Class II medical equipment; Leasing management services of
small and micro passenger car; Machinery and equipment
leasing; Non-residential real estate leasing; Leasing of land use
right (except for licensing business, can independently operate
projects that are not prohibited or restricted by laws and
regulations) Licensed items: Class II medical equipment
production; Class III medical equipment production; Class III
medical equipment operation; Electrical installation services;
Class III medical equipment leasing (Business activities of
projects subject to approval according to law can only be carried
out after approval by relevant departments)
Total -- -- -- -- -- -- -- -- -- -- 19,164,010.26 -- -- --
35
CHANGHONG MEILING CO.,LTD. Annual Report 2021
Note 1: After the deliberation and approval of the 21st session of the 9th BOD of the company, it was agreed that the company's subsidiary company Zhongke Meiling invested 10 million yuan to
invest in the establishment of a wholly-owned subsidiary Anhui Tuoxing Science and Technology Co., Ltd
Note 2: After the deliberation and approval of the 5th session of 10th BOD 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.
(iii)The material non-equity investment in the reporting period
√Applicable □ Not applicable
In RMB
Invested Industry
Invest Accrued Actual Accrued Realized
with involved Investment Capita
ment Investment Amount Anticipated Income up to the Reasons for not Reaching the Planned Disclosed Disclosed Index
Project Name fixed in Amount in this l Project Schedule
Meth up to the End of Income End of Reporting Schedule and Anticipated Income Date (if any) (if any)
assets Investmen Reporting Period Source
od Reporting Period Period
(Y/N) t Projects
The
production
The project of capacity of Juchao
Production
“Production base one million During the reporting period, suffer by Website:Juchao
base project
project of annual automatic the capacity climbing and COVID-19 Website
of annual Manufactu
output of 2 million roller washing and comprehensive factors as soaring (www.cninfo.com
output of 2 re of Approximately
Self-b Fund-r washing machine shall prices of bulk materials and 2019-7-9, .cn)(Notice
million Y household 39,282,138.53 114,768,032.63 -62,170,000
uilt aising machines(Phase be formed amortization of depreciation, sales of 2019-7-26 No.:2019-040,
automatic appliances yuan
II) ” has been after this the Company was less than 2019-041,
washing industry
completed during project being expectation, resulting in a loss of the 2019-042,
machines(Pha
the reporting put into project in the period. 2019-043 and
se II) note
period operation 2019-047)
Total -- -- -- 39,282,138.53 114,768,032.63 -- -- -- -- -- -- --
36
CHANGHONG MEILING CO.,LTD. Annual Report 2021
Note : 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 BOD, the 13th session of the 9th BOS, 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 project was completed in construction.
(iv)Financial assets investment
1. Securities investment
□ Applicable √ Not applicable
The Company had no securities investment in the reporting period.
2.Derivative investment
√ Applicable □ Not applicable
In 10 thousand yuan
Ratio of investment
Relate Whether Amount Amount Amount of reserve amount at Actual
Investment Investment
d related Initial purchased in sales in the for devaluation of period-end in net gains/loss
Operator Type Start date End date amount at amount at
relatio trade or investment the reporting reporting withdrawing (if assets of the es in
period-begin period-end
nship not(Y/N) period period applicable) Company at period
period-end
Financial Forward foreign
N/A N 334,471.07 2020-4-22 2022-12-28 184,610.32 457,956.60 474,558.31 - 156,034.41 32.26% 11,974.21
institution exchange contract
Total 334,471.07 -- -- 184,610.32 457,956.60 474,558.31 - 156,034.41 32.26% 11,974.21
Capital resource Own fund
Lawsuit involved (if applicable) Not applicable
37
CHANGHONG MEILING CO.,LTD. Annual Report 2021
Disclosure date for approval from the Board
2021-3-31
for investment of derivatives (if applicable)
Disclosure date for approval from board of
shareholders for investment of derivatives (if 2021-4-29
applicable)
Risk analysis:
1. Market risk: domestic and international economic situation changes may lead to exchange rate fluctuations, forward foreign exchange transactions are under certain
market risk. Forward foreign exchange business is aiming to reducing impact on corporate profits by foreign exchange settlement and sale prices, exchange rate
fluctuations. The Company will follow up the exchange fluctuation, on the basis of target rate determined from the business, relying on the research of the foreign currency
exchange rates, combined with prediction of consignments, and burdening ability to price variations due to exchange rate fluctuations, then determine the plan of forward
foreign exchange contracts, and make dynamic management to the business, to ensure reasonable profit level.
Risk analysis and controlling measures for 2. Liquidity risk: all foreign exchange transactions are based on a reasonable estimate of the future import and export business, to meet the requirements of the trade
derivatives holdings in the Period (including authenticity. In addition, forward foreign exchange transactions are processed with bank credit, will not affect liquidity of company funds.
but not limited to market risk, liquidity risk, 3. Bank default risk: if cooperative banks collapse within the contract time, the Company will not be able to transact the original foreign exchange contracts with contract
credit risks, operation risk and law risks etc.) price, which leads the risk of income uncertainty. So the Company chose five state-owned banks, the Chinese-funded banks in shareholding enterprise as Everbright Bank,
Industrial Bank and the foreign-funded banks as UOB, OCBC, BEA etc. to conduct the trading of foreign exchange capital. These banks share a solid strength and
management whose failure and the risk of loss may bring to the Company is very low.
4. Operational risk: improper operation of the person in charge of forward foreign exchange transactions may cause related risk also. The Company has formulated related
management system which defines the operation process and responsibility to prevent and control risks.
5. The legal risks: unclear terms based in contract signed with banks for related transactions may lead legal risks when forward foreign exchange transactions are
processing. The Company will strengthen legal review, and choose good bank to carry out this kind of business as to risk control.
Invested derivative products have changes in The Company determines fair value in accordance with the Chapter VII “Determination of Fair Value” carried in the Accounting Standards for Business Enterprises No.22
market price or fair value in the Period, as - Recognition and Measurement of Financial Instruments. Fair-value is basically obtained according to prices offered by bank and other pricing services. While fair-value
for analysis of the fair value of derivatives, of derivatives is mainly obtained according to the balance between prices given by outstanding contracts and forward prices given by contracts signed during the reporting
disclosed specific applied methods and period with bank. The differences are identified as trading financial assets and liabilities. During the reporting period, forward foreign exchange contracts and losses of the
correlation assumption and parameter setting Company is 119.7421 million yuan.
Specific principle of the accounting policy
and calculation for derivatives in the Period Not applicable
compared with last period in aspect of major
38
CHANGHONG MEILING CO.,LTD. Annual Report 2021
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
Shenzhen Stock Exchange Self-Regulatory Guidelines No.1- Standardized Operation of the Listed Companies on main Board , the Articles of Association, Management
Measures on Company Authorization, Management System in relating to Foreign Exchange Forward Deals, and these deals were conducted within the authorization scope
under general meeting and board meeting. The Company conducts no foreign exchange transactions on the purpose of getting profit only, all of the forward foreign
Special opinion on derivative investment
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
and risk control by independent directors
specific business operations with purpose of avoiding the preventing the risks in exchange rate. The forward foreign exchange transactions of the Company are beneficial
to prevent the exchange risks exposed by import and export business and thus met its requirement for operation development. There was no speculative operation, no break
of relevant rules and regulations and relevant business was conducted under corresponding decision-making procedures. Interests of the Company and entire shareholders,
especially minority shareholders, were not prejudiced.
39
CHANGHONG MEILING CO.,LTD. Annual Report 2021
(v) Application of raised proceeds
√ Applicable □ Not applicable
1. Overall application of raised proceeds
√ Applicable □ Not applicable
In 10 thousand yuan
Total raised Ratio of Raised
Cumulative raised Total
Total raised capital capital has cumulative Usage of the retained raised capitals capitals idle
Raising Total accumulative capitals has accumulative
Way Total raised capitals used purpose of uses raised capitals and what is expected to invested with for more
year raised capitals used purpose of uses raised capitals
in Period changed in has purpose of those capitals than two
changed in total unused
Period uses changed years
Construction of the fund-raising
projects have been completed,
remaining fund-raising projects will be
closed subsequently, the spare
fund-raising and balance resulted by
difference between interest income
Non-pub (generated before canceling the
lic specific account for fund-raising
2016 offering 154,073.272276 9,421.530637 116,975.522643 0 42,584.305127 27.64% 6,467.864327 subsequently) and handling fee will be -
of supplemented with the working capital
A-share of the Company permanently for daily
operation and business development.
Found more in the “Note 4. Use
purpose and destination of the raised
funds un-used” under “2. Situation of
committed project of raised proceed in
this section”.
40
CHANGHONG MEILING CO.,LTD. Annual Report 2021
Total -- 154,073.272276 9,421.530637 116,975.522643 0 42,584.305127 27.64% 6,467.864327 --
Explanation on General usage of raised capital
Being deliberated and approved by 1st extraordinary shareholders meeting of 2016 and 17th session of 8th BOD, and verified by the Reply on Private Placement of Hefei Meiling Co., Ltd. (CSRC XK [2016] No.1396)
issued from CSRC, the Company successfully offering 280,858,676 shares (A-stock) to 7 qualified investors, including Sichuan Changhong Electric Co., Ltd. (hereinafter referred as to Sichuan Changhong), with
price of 5.59 yuan/Share and face value of 1.00 yuan. According to the Verification Report XYZH/2016CDA40272 issued by Shine Wing Certified Public Accountants (LLP), total raised fund amounting to
1,569,999,998.84 yuan, less vary issuance changes (tax included) 29,267,276.08 yuan, raised fund amounts to 1,540,732,722.76 yuan.
Ended as 31 December 2021, actually fund of raised used accumulative amounted as 1,169,755,226.43 yuan in total, balance of the account for fund raised counted as 64,678,643.27 yuan (including saving interest
income accumulative amounted as 4,432,960.36 yuan and income from financial product at expiration 41,232,660.81 yuan)
The Company accumulative used the fund raised amounted as 1,169,755,226.43 yuan, the use of purpose including: intelligent construction has 385,768,032.63 yuan in used; R&D ability for intelligence and new
products for intelligent household appliance has 468,105,530.03 yuan in used; smart life project totally used 45,001,600.000 yuan; used in current fund supplementary counted as 270,880,063.77 yuan (including
saving interest of 147,341.01 yuan)
2. Situation of committed project of raised proceed
√ Applicable □ Not applicable
In 10 thousand yuan
Change the Investment Achieve
Major changes
Committed investment project (Y/N) Cumulative progress till Benefit d
Total raised-fund Investment after Date of reach a of project
projects and over-raised (including Invested in the period investment amount till end of achieved in expected
commitment adjustment (1) predetermined state of use feasibility
fund investment partially end of Period-end (2) period-end (3) the Period benefits
(Y/N)
changed) ＝(2)/(1) (Y/N)
Committed investment project
Intelligent manufacturing
(Hefei) project: end of 3,681 N N
Construction of December 2020
intelligent Partial change 39,100.00 39,100.00 3,928.341478 38,576.803263 98.66% Production line for the
manufacturing project annual capacity of 2
-2,547 N N
million washing
machines(Phase II): end
41
CHANGHONG MEILING CO.,LTD. Annual Report 2021
of December 2021
Construction of
intelligent R&D
Not
capability and new
No changes 55,900.00 48,188.658476 5,493.189159 46,810.553003 97.14% End of December 2021 -- applicab N
products development
le
of the intelligent
appliance technology
Not
Change
Intelligent life project 32,000.00 4,500.16 0 4,500.160000 100.00% -- -- applicab Y
completed
le
Not
Supplementary the
No changes 27,073.272276 27,073.272276 0 27,088.006377 100.05% -- -- applicab N
floating capital
le
Subtotal of committed
-- 154,073.272276 118,862.090752 9,421.530637 116,975.522643 -- -- -- -- --
investment project
Investment of the over-raised fund
No over-raised fund in the Period
Payment of bank loans
-- -- -- -- -- -- -- -- -- --
(if applicable)
Supplementary the
working capital (if -- -- -- -- -- -- -- -- -- --
applicable)
Subtotal of over-raised
-- -- -- -- -- -- -- -- -- --
fund investment
Total -- 154,073.272276 118,862.090752 9,421.530637 116,975.522643 -- -- -- -- --
Conditions and reasons of failure to meet schedule or predicted income (by specific
Found in Note 1
projects)
Description of major changes in project feasibility ”Found more in the “3.Change of the raised funds ” in this section
42
CHANGHONG MEILING CO.,LTD. Annual Report 2021
Amount, use of purpose and usage progress of the excessive raised fund Not applicable
Change of the implementation location of project with investment of raised fund Not applicable
Adjustment of the implementation ways of project with investment of raised fund Not applicable
Early investment and replacement with the raised fund Found in Note 2
Temporary replacement of the working capital with idle raised funds Not applicable
Amount and reasons of cash surplus in raised funds during implementing the project Found in Note 3
Use purpose and destination of the raised funds un-used Found in Note 4
Relevant information with raised funds concerned are disclosed in a timely, true, accurate and complete manner, there is no violation
Problems or other circumstances in the use of raised funds and its disclosure
in the deposit, use, management and disclosure of the raised funds.
43
CHANGHONG MEILING CO.,LTD. Annual Report 2021
Note1: Implementation of fund-raising projects
1.“Construction of intelligent manufacturing project ”:
(1) the original planning construction period of “construction of intelligent manufacturing (Hefei) project” is 3-year, and with
purpose of regulating the use of raised funds, the resolution of the 20th session of the 9th BOD, the 11th session of the 9th Supervisory
Committee of the Company and resolution of AGM of 2018 passed and agreed to postpone the date that the project achieves the
scheduled serviceable condition to the end of December 2021. Up to now, the "construction of intelligent manufacturing (Hefei)
project" has reached its intended use status. During the reporting period, due to the impact of the soaring price of bulk materials,
revenue from the project did not reach the expectations during the reporting period.
(2) The "Production line for the annual capacity of 2 million washing machines(Phase II)" has completed at end of the 2021 with
normal production in process. As of today, the project has reached the intended state of use. During the reporting period, suffer by the
capacity climbing and COVID-19 and comprehensive factors as soaring prices of bulk materials and amortization of depreciation,
sales of the Company was less than expectation, resulting in a loss of the project in the period.
2.“Construction of intelligent R&D capability and new products development of the intelligent appliance technology ”
According to the “Non-public Offering of A-Share” in 2016, the Company plans to invested 559 million yuan on
the project, and implementing the two major projects includes “intelligent R&D capacity building”(mainly include
intelligent R&D management platform construction, experimental center construction and relocation, the
construction of H&R and cooperative R&D) and “intelligent home appliance technology and new product
development”.
In order to accelerate the implementation of the company’s “intelligent research and development projects”, shorten the development
cycle of intelligent products, improve the company's research and development capabilities, and reduce the repeated investments in
resources, the resolutions of the 31st meeting of the ninth BOD, the 16th meeting of the 9th BOS, and the 4th extraordinary
shareholders’ meeting in 2019 passed and agreed the company to change the use and investment of some of the funds raised in the
“intelligent research and development project”, and use them to purchase intelligent infrastructure platform construction and software
R & D platforms and other R & D assets from Sichuan Changhong Electric Co., Ltd.(hereinafter referred to as Sichuan Changhong)
and its subsidiaries. The pricing of the related transactions was subject to the appraised value of the underlying asset as of September
30, 2019, and the transaction price was determined to be 46,617,300 yuan.
Being approved by the 23rd session of 9th BOD, 17th session of 9th BOS and First extraordinary shareholders
general meeting of 2020, agreed to close the project of “intelligent R&D”, and the surplus proceeds of the project
as of November 30, 2019, amounting to 125,084,220.44 yuan (including income of 47,970,805.20 yuan from
wealth management and deposits) and the interest to be settled thereafter to replenish the working capital of the
Company permanently. Meanwhile, total amount of the final payment and warranty deposit that to be paid
114,368,326.60 yuan will continue to be retained in the fund raising account and paid as agreed in the contract.
As for the assets transaction with R&D purchased, after singing the “Assets Transfer Agreement” between the Company and other
parties, the Company actively implemented the implementation of the transaction. However, substantial difficulties were encountered
in the specific promotion work in 2020 due to the changes in the internal and external environment. Affected by the epidemic, assets
handover has a slow progress in transaction, and the immature delivery conditions for some assets due to technology iteration and
upgrade, material uncertainty has arisen as to the timing and results of the delivery completion of the subject assets. Taking into
account the actual situation of the company and the future development needs, after deliberation and approval at the seventh session
of the tenth BOD of the company and the 6th session of the 10th BOS of 2021 and the first extraordinary shareholders’ general
44
CHANGHONG MEILING CO.,LTD. Annual Report 2021
meeting of 2021, it was agreed that the company would terminate the use of raised funds to purchase the R&D assets such as the
intelligent infrastructure platform construction and software R&D platform of Sichuan Changhong and its subsidiaries.
Before the termination of the transaction, the company had not yet paid the transaction funds and had not carried out the transfer
procedures for the underlying assets. In order not to affect the progress of the company's fundraising project "intelligent R&D
Project", the company had used its own funds to promote the sub-project "intelligent R&D management platform construction” in
advance; after the termination of the transaction, the company continued to promote the construction of “intelligent R&D
management platform construction”, a sub-project of the “intelligent R&D Project” (other sub-projects of the intelligent R&D Project
have been completed). Up to now, the "intelligent R&D management platform construction" has been completed and is ready for use.
In view of the project close and permanent replenishment of the working capital with surplus proceeds, the R&D
assets as intelligent infrastructure platform and software R&D platform purchased from Sichuan Changhong and
its subsidiaries with fund raising are terminated. Therefore, the project of “intelligent R&D management platform
construction” is still under implementation. During the reporting period, the construction charge for intelligent R&D
management platform, the contract final payment and warranty of 54,931,891.59 yuan in total are paid by the Company. Ended as 31
December 2021, remaining proceeds of “intelligent research and development projects” was 15,812,019.58 yuan (including wealth
management income of 1,735,039.45 yuan and deposit interest income of 295,925.40 yuan )
3.“Intelligent life project”
The resolutions of the 24th session of the ninth BOD of the company, the 13th session of the 9th BOS, and the 2nd extraordinary
shareholders’ meeting in 2019 passed and approved the company to terminate the implementation of the “Intelligent life project” and
use the remaining raised funds, financial management interest and deposit interest of the project to permanently supplement the
working capital. The company has withdrawn the remaining funds raised and interest income from this account, a total of
305,843,051.27 yuan, to permanently supplement the company’s working capital. After the withdrawal, the remaining funds of the
special account for the raised funds were 0 yuan, and the account was cancelled. Meanwhile, the implement subject - Changmei
Technology Co., Ltd. (hereinafter referred to as the “Changmei Technology”) has been liquidated and cancelled.
4. “Supplementary the working capital ”
The investment progress exceeded 100%, and mainly due to the use of raised funds containing the deposit interest of raised funds.
Note 2: Early investment and replacement with the raised fund
Ended as 31 October 2016, the Company contributed self-raised fund 63,984,738.91 yuan for the raised-fund investment project, the
money has replaced as 63,984,738.91 yuan. Shine Wing CPA (LLP) made a special audit for pre-investment and carried out an
Assurance Report on Invested Self-raised fund to the Raised-fund Investment Before Hand (XYZH/2016CD40285) (hereinafter
referred as to Assurance Report). Replacement are as:
In 10 thousand yuan
Commitment
Investment of self-raised
Total capital for Amount
Raised-fund investment project fund invested till end of 31
investment raised-fund replaced
October 2016
project
Construction of intelligent
39,870.65 39,100.00 2,545.41 2,545.41
manufacturing project
Construction of intelligent R&D
capability and new products 55,900.00 55,900.00 2,053.06 2,053.06
development of the intelligent
45
CHANGHONG MEILING CO.,LTD. Annual Report 2021
appliance technology
Intelligent life project 32,076.00 32,000.00 1,800.00 1,800.00
Total 127,846.65 127,000.00 6,398.47 6,398.47
The replacement has been deliberated and approved by the 27th session of 8th BOD and 14th session of 8th supervisory committee,
independent directors are proposed an agreeable independent opinion, and sponsor institution carried out a verification opinion
without objection.
Note 3: Amount and reasons for the balance of proceeds from implementation
1. According to the resolutions passed at the thirty-third session of the ninth BOD, the 17th session of the 9th BOS, and the first
extraordinary shareholders’ general meeting of 2020, it was agreed that the company would partially complete the "intelligent R&D
ability building and smart home appliance technology new products development project" (hereinafter referred to as “intelligent
R&D project”). The amount of surplus funds raised in the completion part of the project was 126,766,362.64 yuan (including wealth
management income and deposit interest income). The main reasons for the above-mentioned surplus of raised funds are: firstly,
during the implementation of the raised funds investment project, the company complied with the relevant regulations on the use of
raised funds, proceeded from the actual situation of the project, on the premise of not affecting the smooth implementation and
completion of the fund-raising investment project, and based on the principles of rationality, economy and effectiveness, the
company prudently used the raised funds, and saved the project surplus raised funds of 77,113,415.23 yuan; secondly, interest income
from wealth management and deposits generated during the deposit period of idle raised funds, totaling 49,652,947.41 yuan.
2. According to the resolutions passed at the sixteenth session of the tenth BOD and the thirteenth session of the tenth BOS, it was
agreed that the company would complete the "intelligent R&D management platform construction", a sub-project of the remaining
fundraising projects "intelligent manufacturing construction project" and "intelligent R&D project". The amount of the surplus raised
funds in the completion of the fundraising project was 45,665,621.17 yuan, which was wealth management income and deposit
interest income. The above-mentioned surplus of raised funds is mainly due to the interest income generated from financial
management and deposits during the depositing period of idle raised funds. This matter still needs to be submitted to the company's
general meeting of shareholders for consideration and approval.
Note 4: Use purpose and destination of the raised funds un-used
On March 29, 2022, the sixteenth session of the tenth BOD and the thirteenth session of the tenth BOS reviewed and approved the
Proposal on Completing Investment Projects of Remaining Raised Funds and Permanently Supplementing the Working Capital with
Surplus Raised Funds, the independent directors have issued agreed independent opinions, and the sponsor institution has issued an
unobjectionable verification opinion, agreeing that the company would complete the "intelligent R&D management platform
construction", a sub-project of the remaining fundraising projects "intelligent manufacturing construction project" and "intelligent
R&D project", and the surplus raised funds of the aforementioned projects as of December 31, 2021 of 45,665,621.17 yuan (the final
amount should be subject to the bank interest balance on the day the funds are transferred out), as well as the balance formed by the
difference between interest income and service fee generated before the cancellation of the subsequent special account for the raised
funds shall permanently supplement the company's working capital and be used for the company's daily operations and business
development. This matter still needs to be submitted to the company's general meeting of shareholders for consideration and
approval.
Up to now, all the raised funds that have not been used by the company are deposited in the designated special account for raised
funds, and will continue to pay the balance payment of the fundraising project contract and the quality assurance fund. The use of the
46
CHANGHONG MEILING CO.,LTD. Annual Report 2021
raised funds of the Company has not changed.
3.Change of the raised funds
√ Applicable □ Not applicable
In 10 thousand yuan
Investment Achieve Major changes
Correspond Cumulative Date of reach Benefit
Total raised funds Amount actually progress till d of project
Project after ing original investment amount a achieved
plans to invest after invested in the end of expected feasibility
changed commitmen actually till end of predetermined in the
change (1) period period-end benefits after changed
t item Period-end (2) state of use Period
(3)＝(2)/(1) (Y/N) (Y/N)
Production line
for the annual Freezer
capacity of 2 intelligent
12,000 3,928.213853 11,476.803263 95.64% 2021-12-31 -2,547 N N
million washing constructio
machines(Phase n project
II)
Supplementary
the floating Intelligent Not app
30,584.305127 0 30,584.305127 100% -- -- N
capital life project licable
permanently
Total -- 42,584.305127 3,928.213853 42,061.10839 -- -- -- -- --
1. The Company optimized the layout of the freezer’s production capacity through intelligent upgrading and rebuilding,
improved the freezer’s production capacity and efficiency, and the freezer’s production capacity has been able to meet the market
demand. The project had not been implemented, and the feasibility of the project had undergone major changes, if the Company
continued to implement the “freezer intelligent construction project”, it would not be able to achieve the expected economic
benefits and would face market and investment risks. Approved by the resolutions of the 24th session of the ninth BOD, the 13th
session of the 9th BOS, and the 2nd extraordinary shareholders meeting in 2019 agreed the Company to change the unused raised
funds of 120 million yuan for the “intelligent construction of freezer” invest in the “production base project for annual
production of 2 million washing machines (Phase II)”. Found more on relevant announcement (Notice No.: 2019-040, 2019-041,
Reasons for changes, 2019-042 and 2019-047) released on 9 July 2019 and on 26 July respectively. During the reporting period, “production base
decision-making procedures project for annual production of 2 million washing machines (Phase II)” has completed at end of the 2021 with normal
and information disclosure production in process. The project reached the intended state of use as of today.
(explain by specific project)
2. As the main body of the company’s “Intelligent life project”, Changmei Technology used its own refrigeration equipment
manufacturing advantages to look for new paths for enterprise development. However, due to the heavy asset burden, low
turnover rate, high operation and maintenance and property costs, it sustained losses. After careful research, the company
considered that the original business model of the smart life project was no longer competitive, if the company continued to
implement the investment project with the raised funds, it would be difficult to achieve the expected investment income and may
even generate greater losses. The resolutions of the 24th session of the ninth BOD of the company, the 13th session of the 9th
BOS, and the 2nd extraordinary shareholders’ meeting in 2019 passed and approved the company to terminate the
implementation of the “Intelligent life project” and use the remaining raised funds and financial management interest of the
project to permanently supplement the working capital. Found more on relevant announcement (Notice No.: 2019-040,
47
CHANGHONG MEILING CO.,LTD. Annual Report 2021
2019-041, 2019-043 and 2019-047) released on 9 July 2019 and on 26 July respectively. The company has withdrawn the
remaining funds raised and interest income from this account, a total of 305,843,051.27 yuan, to permanently supplement the
company’s working capital. After the withdrawal, the remaining funds of the special account for the raised funds were 0 yuan,
and the account was cancelled. Meanwhile, the implement subject - Changmei Technology Co., Ltd. (hereinafter referred to as
the “Changmei Technology”) has been liquidated and cancelled.
Conditions and reasons of The “production base project for annual production of 2 million washing machines (Phase II)” has completed at end of the 2021
failure to meet schedule or with normal production in process. The project reached the intended state of use as of today. During the reporting period, suffer
predicted income (by by the capacity climbing and COVID-19 and comprehensive factors as soaring prices of bulk materials and amortization of
specific projects) depreciation, sales of the Company was less than expectation, resulting in a loss of the project in the period.
Presentation on the major
changes in project feasibility N/A
after changed
VIII. Sales of major assets and equity
(i) Sales of major assets
□ Applicable √ Not applicable
No major assets are sold in the period
(ii) Sales of major equity
□ Applicable √ Not applicable
IX. Analysis of main holding company and stock-jointly companies
√ Applicable □ Not applicable
48
CHANGHONG MEILING CO.,LTD. Annual Report 2021
(i) Particular about main subsidiaries and stock-jointly companies net profit over 10%
In RMB
Company name Type Main business Register capital Total assets Net assets Operating revenue Operating profit Net profit
Zhongke Meiling Research and development,
Cryogenic manufacturing and sales of
Subsidiary
ultra-low temperature
72,548,200 525,123,425.58 248,075,236.72 464,899,620.09 77,804,211.51 65,085,510.92
Technology Co.,
Ltd. freezer
Jiangxi Meiling
Manufacturing of
Electric Appliance Subsidiary
refrigeration and freezer
50,000,000 269,231,691.58 132,436,721.37 834,813,600.80 13,453,619.64 13,531,378.62
Co., Ltd.
Mianyang Meiling
Manufacturing of
Refrigeration Co., Subsidiary
refrigeration and freezer
100,000,000 146,680,170.59 120,388,578.98 384,775,062.33 -1,433,282.09 -1,099,588.10
Ltd.
Sichuan Changhong R&D, manufacturing and
Air-conditioner Co., Subsidiary domestic sales of 850,000,000 3,290,717,406.66 1,084,703,780.24 4,916,379,335.27 -5,884,296.28 -4,190,915.53
Ltd. air-conditioning
Zhongshan R&D, manufacturing and
Changhong Electric Subsidiary foreign sales of 334,000,000 1,294,481,958.15 81,279,662.26 2,384,071,471.29 -40,772,575.99 -40,598,387.35
Co., Ltd. air-conditioning
Hefei Meiling
Group Holdings Subsidiary Sales of white goods 80,000,000 1,660,769,710.90 -228,079,317.35 5,648,841,234.10 -47,507,646.68 -46,955,697.02
Limited
R&D, manufacturing and
Changhong Meiling sales of kitchen and toilet
Ridian Technology Subsidiary products, small home 83,000,000 303,209,569.07 136,853,874.26 309,467,627.62 3,092,866.04 2,351,153.78
Co., Ltd. appliances and water
purifier
Hefei Changhong R&D and sales of household
Subsidiary 50,000,000 421,208,513.56 80,365,175.14 1,136,846,527.85 40,139,653.52 30,365,175.14
Meiling Life appliances, kitchen
49
CHANGHONG MEILING CO.,LTD. Annual Report 2021
Appliances Co., appliances and small home
Ltd. appliances
Hefei Xingmei
Assets Management Associates Leasing, agency 1,000,000 47,138,542.38 41,084,024.11 31,871,752.79 26,945,094.97
Co., Ltd.
50
CHANGHONG MEILING CO.,LTD. Annual Report 2021
(ii) Subsidiary obtained and disposed in the period
√ Applicable □ Not applicable
The method of
obtaining and
Company name disposing The influence to the whole production and performance
subsidiaries during
the report period
The wholly-owned subsidiary invested by the controlling subsidiary of the
Company - Zhongke Meiling, registered capital amounted to 10 million yuan.
Anhui Ling'an Medical Equipment Investment and
Establishment of the company further expands the business scope of Zhongke
Co., Ltd. Establishment
Meiling in field of biomedical, further develops the business in life science
segment and enhance the core competitiveness of Zhongke Meiling.
Tai yuan Meiling Electric Mergers & Minor effect on the overall production and operation and performance of the
Appliances Marketing Co., Ltd acquisition company
Tianjin Meiling Electric Appliances Mergers & Minor effect on the overall production and operation and performance of the
Marketing Co., Ltd acquisition company
Guangzhou Meiling Electric Mergers & Minor effect on the overall production and operation and performance of the
Appliances Marketing Co., Ltd acquisition company
(iii) Description of the holding company and stock-jointly companies
Subsidiary of the Company - Sichuan Changhong Air-conditioner Co., Ltd has major growth in net profit from a
year earlier, mainly because the revenue from operation increased dramatically on a y-o-y basis.
X. Structured entity controlled by the Company
□ Applicable √ Not applicable
XI. Prospects for the future development of the company
(1)Macro environment analysis
Looking forward to 2022, the impact of the pandemic on various industries affects residents' income to a certain
extent, consumer demand shrinks, and pressures from supply shocks and weakening economic expectations still
exist, and the pandemic and the complex and volatile global political and trade environment bring lots of
uncertainties to economic development. But in the long run, China's economy is resilient, and the long-term
positive fundamentals will not change. With a new round of technological revolution and the in-depth
development of industrial transformation, new technologies will promote profound changes in the traditional
manufacturing industry, the pace of corporate innovation will be accelerated, the consumer market will be
characterized by hierarchy and individualization, and there will be new opportunities for the development of the
home appliance industry. Under the general trend of industry consumption upgrading, the high-quality,
personalized, fashionable, comfortable, intelligent, healthy and other emerging categories and scene solutions that
accurately match the needs of segmented groups through technological innovation and consumer research will
have a rapidly growth and become the main driving force for the consumer market. The household appliance
51
CHANGHONG MEILING CO.,LTD. Annual Report 2021
industry chain will comprehensively have a green, low-carbon, intelligent, and digital transformation and
upgrading, and continue to enhance the industry's global competitiveness and influence.
(2) Industry environment analysis
1.Refrigerator (freezer) industry
In the domestic market, according to the data released by the National Bureau of Statistics, the refrigerator and
freezer ownership per 100 households in China has exceeded 100 in 2020, which also means that the refrigerator
market has fully entered the stock market, and the product structure upgrade and the price structure upgrade
brought about by the renewing process still exist, and the scale still maintains a steady development trend. From
the perspective of the supply side, although raw material prices of bulk commodity have fallen, they are still
operating at a high level. The long-term existence of cost pressures will continue to form a negative feedback on
the scale, and will also continue to drive industry prices higher. All View Cloud (AVC) predicts that the retail sales
volume of the refrigerator market will reach 31.51 million units in 2022, a year-on-year decrease of 1.2%, while
the upstream cost continues to drive price growth. The retail sales are expected to be 98 billion yuan, a
year-on-year increase of 0.9%.
In terms of the export, the demand for refrigerators in overseas markets, especially in Europe and the United
States, is likely to fall due to the weak demand brought about by overdraft in the early stage and the increase in
terminal prices, as well as the multiple pressures brought about by the withdrawal of financial subsidies in many
regions. In addition, the shipping price remains high in a short period of time, and the repeated outbreaks of
pandemics overseas result in a sluggish international logistics supply chain and a low empty container turnover
rate, the shipping capacity of major overseas ocean routes is still tight, which also squeezes the export share and
profit to a certain extent. The industry online predicts that the export scale of refrigerators will decline to a certain
extent in 2022.
2. Air-conditioning industry
In 2021, the cost of the air-conditioning industry soared, the industry demand was weak, and enterprises faced
huge operating pressure. In the first half of 2022, the consumption drive of the domestic air-conditioning market is
still insufficient and there are still some uncertain factors, but with the stimulus and guidance of a series of
national consumption policies, the consumer market will gradually improve in the second half of the year. In
overseas markets, because the slowdown in global economic recovery is hard to alter, the behavior of issuing
consumer vouchers in developed countries is unsustainable, high inflation and exchange rate fluctuations restrain
demand, and shipping prices will remain high in the short term, the prices of air-conditioning products are hard to
fall back, and there is great uncertainty in the overseas market demand for air conditioners in 2022. In this context,
the competition among enterprises is more rational and cautious.
3.Washing machine
In recent years, the washing machine market has tended to a period of stock consolidation, the market demand is
52
CHANGHONG MEILING CO.,LTD. Annual Report 2021
mainly for upgrading, and insufficient demand has become the norm in the industry. Especially under the
influence of the COVID-19 epidemic, the overall growth rate of the industry has declined. Affected by factors
such as rising raw materials prices, increased cost, and consumer’s mentality after the pandemic, competition
among enterprises has shifted from price to value. In addition to basic functions such as washing, products also
focus on high-quality and high additional functional requirements, such as drying, sterilization, and intelligence,
and continuously improve product quality. In view of the stable domestic pandemic situation, the possibility of a
large-scale outbreak is minimal. At the same time, the market demand for washing machine renew is stable, and
the pace of product iteration is stable and powerful. Among household appliances, washing machine shows a
positive trend of continuously stable market, continuous transfer of channels, and continuous upgrading of
structure.
4.Kitchen & bathroom, small appliance
In the kitchen appliance industry, the "stay at home economy" caused by the pandemic allows millions of families
to regain the time and space to cook, and awakens people's love and enthusiasm for cooking. However, with the
normalization of the pandemic, consumers have gradually become more rational and less enthusiastic about
consumption. According to the national standard for the service life of kitchen and bathroom products, kitchen and
bathroom products will gradually enter the renew cycle, and along with the technical iteration of kitchen and
bathroom products, the improvement of residents' consumption levels, and the implementation of plans such as
old city renovation, the upgrading of kitchen and bathroom products will be further accelerated.
In terms of the small home appliance industry, from the channel level, the arrival of the epidemic has led to the
rapid development of online channels and the maturity of live streaming sales, and online channels have become
the main sales channels for small home appliances. From the perspective of category, consumption continues to
escalate and the population is continuously subdivided, resulting in a diversified consumption demand. Many
emerging small home appliances categories emerge after the epidemic, injecting new energy and opportunities
into the small home appliance market. But at the same time, small home appliance is also facing the dilemma of
low entry threshold and uneven products, resulting in the increasingly fierce competition among enterprises.
5.Bio-medical
The medical equipment industry has a huge market size and many subdivisions, together with the equipment
upgrades of primary medical institutions during the post-pandemic period, the market demand for various medical
equipment has been growing steadily. Under the background that the national policy focuses on encouraging the
localization and domestic substitution of medical equipment, the state encourages the priority to purchase
domestic devices, which has created the demand for localization and promoted the continuous improvement of the
domestic medical equipment industry chain. At the same time, companies continue to increase investment in
research and development, enhance independent innovation capabilities, adjust business models, and establish and
improve regulatory systems, which have effectively promoted the process of localization of medical equipment.
(iii) Development strategy
1. Vision
53
CHANGHONG MEILING CO.,LTD. Annual Report 2021
Be a leading brand in China, World Class and respectable household appliance enterprise.
2. Strategic direction
Fully implement the guideline of "one goal, three main lines", drive organizational transformation through
reasonable commercial inventory turnover, and improve overall competitiveness with efficiency as the core, so as
to achieve the steady development of the industry.
(iv) Business plan for 2022
1. Management principle
The company's management principle in 2022 is "one goal, three main lines". The company will firmly take the
road of efficiency as the king, product leadership, and benchmarking, so that the capabilities of efficiency and
product can be transformed into economic benefits through benchmarking, and then achieve one goal of achieving
share growth under the premise of profitability.
(1) One goal
"One goal" is to achieve share growth under the premise of profitability. Deepen the marketing transformation,
further strengthen the operation management system centered on reasonable commercial inventory, the value
management system centered on retail price, the marketing management system centered on retail, and the
expense control system centered on rigid budget, and continue to increase revenue, reduce costs, and reduce fees
in the research and production end so as to achieve the goal of continuous improvement in operations.
(2) Three main lines
Efficiency is king: further strengthen the operation management system with reasonable commercial inventory as
the core, and lead the efficient and coordinated operation of the whole link of retail-manufacturing-logistics.
1. Improve commercial inventory turnover. The retail end strengthens the inventory management of commercial
units, accelerates the marketing transformation and business model optimization, and continues to shorten the
commercial inventory turnover days; the manufacturing end shortens the order cycle through the futures model
and the order model; improves the supply capacity and shortens the procurement cycle; improves die change
efficiency and flexibility production and increase the daily delivery rate to shorten the production cycle; the
logistics end shortens the logistics cycle by improving the efficiency of logistics collection, loading, and delivery.
At the same time, the company will build a data security system to vigorously ensure the smooth progress of
industrial Internet projects, increase the proportion of direct delivery of products, increase the proportion of orders
and customers, and support the increase in commercial inventory turnover.
2. Improve R&D efficiency. Take the product as the starting point, connect the planning, development, promotion
and sales business chain to achieve the joint action of goals and tasks, reduce the design change rate, compress the
research and development cycle, and strictly control the number of product models.
3. Improve manufacturing efficiency. On the premise of ensuring safety, we will focus on comprehensive
54
CHANGHONG MEILING CO.,LTD. Annual Report 2021
operation, precise ordering, digital manufacturing, and lean production; with production line efficiency as the
starting point, we will greatly narrow the gap with benchmarks and achieve manufacturing breakthroughs.
4. Improve quality efficiency. Continue to promote risk control, cost reduction, and reputation improvement,
improve product quality level, greatly reduce the bad review rate of e-commerce, telephone complaint rate, and
return rate, and improve customer satisfaction.
5. Improve human efficiency and cultural implementation. Continuously optimize jobs and improve human
efficiency, and upgrade GPI (employee performance growth indicator) and improve employee vitality. Implement
the corporate culture into the code of conduct and the evaluation standards for each cadre and employee, and
improve the professional satisfaction of all employees.
Product leadership: Value oriented, study consumer needs and gain insight into technology development trends;
integrate internal planning capabilities, R&D and manufacturing capabilities, marketing and promotion
capabilities and user service capabilities, and superimpose "unique value products" on the basis of efficiency to
form the competitive advantages of "high-quality products + popular products" .
1. Adhere to the product strategy. Adhere to the product strategy of "high-quality products" + "popular products" +
"high-quality & popular products", focus on "thin, fresh, beautiful, intelligent" refrigerators, focus on "extremely
quiet, extremely economical, extremely intelligent" air conditioners, focus on "thin, large, simple” washing
machines, focus on “influential brands of water ecological household appliances and operation services” for
kitchen, bathroom and small household appliances, and focus on “life sciences, cold chain and health market
opportunities” to make product layout for biomedical products. Through "accurate positioning, strengthening
stratification, revitalizing bases, and channel customization", we continue to enhance product competitiveness and
promote healthy product operation.
2. Strengthen the construction of product planning system. Refresh the product planning and development outline
by node to accurately meet the market demand. Go deep into the market to improve the accuracy and breadth of
product planning, standardize the implementation of the IPD process, and reduce source changes.
3. Take the user as the center, dig out and solve the pain points. Make precise user portraits, embed user
experience evaluation into the IPD process, and enhance the improvement rate of user experience problems for
new products.
4. Improve the capacity building of core key technologies. Independently master the core technology to achieve
industry leadership; integrate and apply the key technologies to achieve industry advancement; and master the
hard core technology mechanism to achieve industry breakthroughs.
5. Strengthen intelligent research. Create a leading product use experience around the human-computer interaction
between users and home appliances, and create a new generation of home appliance products around the
integration of basic home appliance technology and intelligent technology.
Benchmarking: It is necessary to benchmark not only the technology, but also the business guiding ideology, so
as to improve the performance, ability and efficiency of the organization.
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CHANGHONG MEILING CO.,LTD. Annual Report 2021
2. Market strategy
(1) Refrigerator (freezer)
In the domestic market, the company will unswervingly carry out the transformation of the marketing organization,
create "high-quality goods" + "hot sale products"+ “high-quality and hot-sale products”, increase scale, improve
gross profit, increase e-commerce efforts, promote online and offline integration, and achieve scale growth
through the increase in online share, meanwhile, shrink offline channels with poor profit and loss.
In overseas markets, focus on valuable scale improvement. Create the advantages of air cooling and frequency
conversion, consolidate the leading advantages of vertical air-cooled refrigerators, create the advantages of
thin-walled horizontal refrigerators with full volume, improve product competitiveness, and continuously increase
market share by focusing on strategic markets, key markets, and potential markets. At the same time, accelerate
the business development of self-owned overseas brands, the subsidiaries run parallel to the agency models, and
speed up the brand export.
(2) Air-conditioning
In the domestic markets, we pursue a benign priority, seize the opportunity to upgrade the functions of "fresh air,
self-cleaning, and comfortable air", and create a "high-quality goods" + "hot sale products"+ “high-quality and
hot-sale products” model. Develop e-commerce, focus on the base market, fully benchmark against each other,
and insist on profitable scale growth.
In overseas markets, the company adheres to the business philosophy of brand priority, channel focus, product
upgrade, and efficiency first. In terms of channels, seek breakthroughs in new markets, further expand emerging
markets, focus on core customers in key markets, and strengthen the ability to respond to different markets. In
terms of products, promote the derivation and sales of new on-hook platform products, and accelerate the
development of the third-generation health air conditioners and the products with voice function of a local
minority language.
(3)Washing machine
On the basis of domestic sales, make rapid breakthroughs in export sales, supplemented by brand business, the
three-in-hand make its own efforts to achieve sustainable and high-quality growth. Focus on the industrial vision
of "wash away the pretense and protect the whole family", adhere to the business philosophy of "user-centered,
high-quality, differentiated", and create the core competitiveness of products such as "ultra-thin body",
"super-large diameter", and "one-key smart wash".
(4) Kitchen and bath, small household appliances
For kitchen, bathroom and small household appliances, continue to implement differentiated competition
strategies, strengthen the improvement of influence in the water ecology segment, and continue to deepen the
system capabilities building based on the business idea of "product traction, marketing transformation, operation
improvement, and team activation", focus on the core product line of "Tea Drinking Ecology", and steadily
improve the market size and industry status.
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CHANGHONG MEILING CO.,LTD. Annual Report 2021
(5) Bio-medical
Unswervingly implement the development strategy based on the related diversification in the bio-medical field,
center on the business framework layout of life science, smart cold chain, and family health, go deep into the life
science channel system construction, promote product upgrade iterations and new technology innovation research
and development to drive services and improve efficiency; move towards automated cold storage, and steadily
expand smart cold chain business; promote the launch of new family health products, and accumulate channel
expansion to promote the rapid growth of the company.
The above business plan and business objectives do not represent the listed Company’s profit forecast of 2022,
whether it can be achieved depends on the changes in market condition, the efforts of management team and other
factors, there are a lot of uncertainties, investors should pay special attention to it.
(v) Possible risks and countermeasures
In the face of home appliances market competition is more intense and other objective factors, the survival
environment of an enterprise will be even worse. In 2022, the Company will face risks as severe industry, soaring
raw material costs, rising shipping prices, trade frictions and geopolitical implications.
1. Risk of price fluctuations in raw materials
Affected by the pandemic, the prices of bulk raw materials used in the company's main products have been rising
for several consecutive rounds since May 2019. Though the prices slightly fell after rise at the end of 2021, due to
the impact of the international and domestic "dual control" policies, it is less likely that prices will have a sharp
decline, and it is expected that the overall operation is still at a high level, and the enterprises face huge cost
pressures.
2. Risk of price fluctuations in international transport
Affected by the pandemic and the increase in international demand for raw materials such as iron ore, the
container and shipping capacity has become tight, leading to an increase in international transport costs. It is
difficult for the company to book the cargo space for product export, resulting in prolonged delivery and transport
cycle, and difficult shipment of finished products. At the same time, the rising sea freight leads to a rise in retail
price, which will restrain the demand in some overseas markets, and thus have an adverse impact on the
company's export business.
3. The impact of trade frictions and geopolitical
The company pays close attention to the impact of uncertain factors such as international trade frictions and
geopolitics on the company's global business.
In response to the above risks, and combined with the industry situation in 2022 and the deficiencies in 2021, the
company will fully implement the business policy of "one goal, three main lines" in 2022, and make arrangements
in terms of products, technologies, and markets in advance, so that the company's products can realize the
high-end and intelligent transformation, meanwhile, enrich product lines, and build a comprehensive home
appliance enterprise.
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CHANGHONG MEILING CO.,LTD. Annual Report 2021
XII. In the report period, reception of research, communication and interview
√ Applicable □ Not applicable
Main contents of the
Receptio Basic situation index of
Time Location Way Type discussion and the
n object investigation
information provided
The shareholders
and investors who
Holding a presentation
participated in the
China Fund- Jihuibao on the 2020 annual http://irm.cninfo.com.cn/ircs/c
interactive
Online Roadshow business results and ompany/companyDetail?stock
2021-4-14 Other Other exchange at the
Center responding the code=000521&orgId=gssz000
2020 annual
(www.jhbshow.com) questions that investors 0521
business
concerned
presentation of
the Company
58
CHANGHONG MEILING CO.,LTD. Annual Report 2021
Section IV. Corporate Governance
I. Corporate governance of the Company
(i) Overview of the corporate governance
In strict compliance with the Company Law, Securities Law, Governance Principles of Listed Company issued by
the CSRC, the Rules Governing the Listing of Stocks on Shenzhen Stock Exchange and Shenzhen Stock Exchange
Self-Regulatory Guidelines No.1- Standardized Operation of the Listed Companies on main Board of SSE, the
Company continued to construct and perfect its governance structure, thereby forming its decision-making,
supervision and operation management organization with general meeting, the board of directors, the board of
supervisors and operation management as the major structure. The general meeting, board of directors, board of
supervisors and operation management of the Company has definite terms of reference, which can ensure an
effective balance, scientific decision-making process and coordinative operation, laying firm foundation for
making decisions relating to the Company’s continuous, steady and healthy development.
During the reporting period, the actual situation of corporate governance has been in line with the requirements of
relevant state laws and regulations, and regulatory documents relevant to governance of listed companies issued
by China Securities Regulatory Commission and Shenzhen Stock Exchange.
1. Shareholders and general meeting
The Company standardized the procedures concerning convening, holding and voting of general meeting in strict
compliance with the Articles of Association and Rules of Procedure of General Meeting. All shareholders,
especially the minority shareholders, were equally treated to ensure all shareholders shall rank equal status and
can fully exercise their right. During the reporting period, the Company convened shareholders general meetings.
In addition to convening general meeting in forms of site conference, the Company offered convenience for
shareholders to present general meeting via network voting which was safe, economic and convenient. At the
same time, all the matters submitted to the Company’s general meeting of shareholders should count the votes of
the small and medium investors separately, and the results of the vote count should be disclosed timely so as to
effectively protect the rights and interests of small and medium investors and ensure that all shareholders,
especially the small and medium shareholders, fully exercise their rights.
2. The Company and controlling shareholders
The Company has independent business and independent management capability. The Company and its
controlling shareholders owe independent business, personnel, assets, organs and finance. During the period,
controlling shareholder abide by requirement of Article of Association and Management System of Related
Transactions, strictly regulate their behaviors, and no controlling shareholder has directly or indirectly intervened
in the Company’s policy-making and business activities beyond the general meeting of stockholders, no capital or
assets of the Company occupied by controlling shareholder and its affiliates either.
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CHANGHONG MEILING CO.,LTD. Annual Report 2021
3. The directors and board of directors
Board Meeting are revoke and open in line with the regulation of Company Law and Article of Association
strictly, voting and information disclosure procedures appliance with relevant rules. All directors of the company
have carried out the work in accordance with the Rules of Procedure for the Board of Directors and the
Independent Director System, conscientiously attended the board meetings and the shareholders' meetings,
exercised their powers in accordance with the law, performed their duties diligently, and actively participated in
relevant training organized by the Shenzhen Stock Exchange and Anhui Securities Regulatory Bureau, the
Listed Companies Association of Anhui, and have been familiar with relevant laws and regulations. Independent
directors strictly abide by the Guiding Opinions on Establishing an Independent Director System in Listed
Companies, the Independent Director System and other regulations, in line with a serious, diligent and loyal
working attitude, based on an independent and prudent stand, actively participated in the company's
decision-making, carefully considered various proposals, issued prior approval and independent opinions on
related transactions and major issues, fully exerted the supervision and check and balance role of independent
directors, and effectively safeguarded the interests of the company and all shareholders, especially the small and
medium shareholders. The four special committees of strategy, remuneration and assessment, audit and
nomination under the board of directors of the company have been responsible for the discussion,
decision-making, supervision and evaluation of major work issues of the company according to the corresponding
working rules of each departmental committee, and quality played an important role in the scientific
decision-making and the improvement of decision-making efficiency and quality.
4. Supervisors and board of supervisors
The Company convened and held meeting of supervisors in strict compliance with the Company Law and Articles
of Association, and the voting and information disclosure procedures of supervisors’ meeting complied with
relevant requirements. The tenth board of supervisors of the company has five supervisors, including two
employee supervisors, the number and constitution of the board of supervisors meet the requirements of laws and
regulations. All supervisors of the company can earnestly perform their duties in accordance with the requirements
of the Rules of Procedure for the Board of Supervisors, supervise the decision-making procedures and resolutions
of the board of directors and the legal operation of the company, review the regular reports prepared by the board
of directors and put forward written review opinions, and effectively supervise and express independent opinions
on the company's major events, related transactions, financial status, the legality and compliance of directors and
senior executives’ performance of duties by attending the general meeting of shareholders and the meeting of the
board of directors from the perspective of safeguarding the legitimate rights and interests of the company and
shareholders.
5. The performance appraisal and incentive and constraint mechanism
The Company owes and continues to improve fairness and transparency performance appraisal standards and
incentive and constraint mechanism for directors, supervisors and senior management, the engagement of
managers of the Company is open and transparent and meets the provisions of laws and regulations.
60
CHANGHONG MEILING CO.,LTD. Annual Report 2021
6. The stakeholders
The Company fully respects and maintains the legitimate rights and interests of stakeholders; strengthen
communication and negotiation with each other, realizes the coordination and balance of interests for all parties
including society, shareholders, company and staff, pushes forward the sustainable, steady and harmonious
development of the Company together. In terms of safeguarding the interests of shareholders, the company treats
all shareholders, especially the small and medium-sized shareholders equally, in strict accordance with relevant
regulations, and ensures that all shareholders enjoy equal status and fully exercise their rights by regulating the
convening, holding and voting procedures of the general meeting of shareholders. In terms of rights and interests
maintenance, the company attaches great importance to the growth and development of employees, improves
employee satisfaction and guides all employees to make more contributions to the development of the company
by building position system, organizing a variety of accrual activities to shape corporate culture, and formulating
sustainable human resources and remuneration policies. In terms of safeguarding the interests of related parties,
guided by the corporate value of "co-creation and sharing", the company is committed to establishing a win-win
cooperation model with related parties for common development and common growth, and exploring the
optimization of cooperation modes such as management, personnel, cost and efficiency under the principle of
equality and mutual benefit.
7. About information disclosure and transparency
During the reporting period, the company strictly complied with relevant provisions of the Listing Rules of
Shenzhen Stock Exchange and the company's Information Disclosure Management System, strengthened the
management of information disclosure affairs, actively fulfilled its information disclosure obligations, and
designated Securities Times, China Securities Journal, Hong Kong Commercial Daily and Juchao Information
Website（Juchao Website (www.cninfo.com.cn)）as the designated media for the company's information disclosure,
implemented strict confidential procedures for material undisclosed inside information, and controlled the scope
of informed personnel. The company earnestly fulfilled its obligations to disclose relevant information in a true,
accurate, timely and complete manner, and ensured that all investors equally enjoy the right to know and other
legitimate rights and interests.
8. Investor relations management
The Company has seriously done the job of the investor relations management in accordance with the
requirements of the "Investor Relations Management System" and "Reception and Promotion system" during the
Period. Communicated with investors through the irm.cninfo.com.cn platform of the Shenzhen Stock Exchange,
fully listened to their opinions and suggestions, and protected the interests of small and medium investors;
earnestly did a good job in answering and replying investors' visits and calls, as well as receiving and replying
faxes and e-mails, and carefully handled the media reports. In order to fully protect the interests of small and
medium investors, the company organized and held the 2020 online performance briefing and achieved good
results, helping investors to have a more comprehensive understanding of the listed company and enhancing the
company's transparency.
61
CHANGHONG MEILING CO.,LTD. Annual Report 2021
(ii)Whether there are significant differences between the actual state of corporate governance and laws,
administrative regulations and the provision with governance concerned for listed companies issued by
CSRC
□Yes √ No
There are no significant differences between the actual state of corporate governance and laws, administrative
regulations and the provision with governance concerned for listed companies issued by CSRC
II. Independence of the Company relative to controlling shareholder and the actual controller in ensuring
the Company’s assets, personnel, finance, organization and businesses
The Company totally separated in business, personnel, assets, institutions and financial aspects from Sichuan
Changhong (controlling shareholder) and actual controller State-owned Assets Supervision & Administration
Commission of Mianyang Municipality, with independent business accounting, responsibility and risk and
independent business operation capability.
1. The business: the Company has an independent and complete business as well as operation ability, with
specialized procurement, production, technology, marketing, management, human resources and other
departments. We autonomously manage and operate business on our own. While the management staff are
independent from controlling shareholders and their subordinate enterprises. The Company is free from
interference by controlling shareholders and other affiliates, and there is no dependence on controlling
shareholders and other affiliates.
2. The personnel: personnel, labor, personnel and salary of the Company are completely independent. President,
vice president, person in charge of finance, Secretary of the board of directors and other senior management
personnel are working in the Company and receive salary, not receiving any remuneration and holding position of
any except directors, supervisors in the controlling shareholder and its subordinate enterprises.
3. Assets: the Company owns places of production and management independent from its controlling shareholder,
owns complete assets structure, independent production system, auxiliary production systems and supporting
facilities, land use rights, ownership of houses and other assets, and independent purchase and sales system. No
assets occupied by controlling shareholders and other affiliates.
4. Institutions: the Company established organization completely independent from controlling shareholders; the
general meeting, board of directors, board of supervisors and the internal organization are capable of taking
independent action, with no controlling shareholder intervention of corporation's decision-making behavior. The
Company strengthen the power restriction system via general meeting, the Board, supervisory committee,
independent directors and vary committees, formulated an effective structure for corporate governance.
62
CHANGHONG MEILING CO.,LTD. Annual Report 2021
5. Financial aspects: the Company set up independent financial management, and independent accounting system
and financial management system, independently setting up banking account and tax declaration.
III. Horizontal competition
□ Applicable √ Not applicable
IV. In the report period, the Company held annual shareholders’ general meeting and extraordinary
shareholders’ general meeting
(i) Annual Shareholders’ General Meeting in the report period
Ratio of
Session of Date of
Type investor Date Index of disclosure
meeting disclosure
participation
Totally 21 proposals including Report on Works of BOD
for year of 2020, Report on Works of BOS for year of
2020, Annual Report of 2020 and Its Summary, Financial
AGM of Statement Report for year of 2020 and Plans of Profit
AGM 31.5421% 2021-4-28 2021-4-29
2020 Distribution for year of 2020 are deliberated and approved
in the Meeting, for details, please refer to the "Resolution
of the AGM of 2020" (No. 2021-034) on the cninfo
website (Juchao Website (www.cninfo.com.cn)).
One proposal on Assets Procurement Termination and
First
Related Transactions was deliberated and approved by the
Extraordinary Extraordinary
Meeting, for details, please refer to the "Resolution Notice
General General 4.7757% 2021-6-16 2021-6-17
of First extraordinary general meeting of 2021" (No.
Meeting of Meeting
2021-046) on the cninfo website (Juchao Website
2021
(www.cninfo.com.cn)).
Totally 2 proposals including Purchasing the Liability
Insurance for Director/Supervisor/Senior Executives and
Second
Increased the Expected Routine Related Transactions for
Extraordinary Extraordinary
year of 2021 are deliberated and approved in the Meeting,
General General 31.3097% 2021-7-28 2021-7-29
for details, please refer to the " Resolution Notice of
Meeting of Meeting
Second extraordinary general meeting of 2021" (No.
2021
2021-058) on the cninfo website (Juchao Website
(www.cninfo.com.cn)).
One proposal on Continue Implementation and Adjustment
Third Partially of the Repurchase Program of Certain Domestic
Extraordinary Extraordinary Listed Foreign Shares (B Share) was deliberated and
General General 31.4135% 2021-9-10 2021-9-11 approved by the Meeting, for details, please refer to the "
Meeting of Meeting Resolution Notice of Third extraordinary general meeting
2021 of 2021" (No. 2021-075) on the cninfo website (Juchao
Website (www.cninfo.com.cn)).
Totally 11 proposals including Amend Some Article of the
Article of Association, Amend Some Articles of Rules of
Fourth
Procedure for Shareholders General Meeting and
Extraordinary Extraordinary
Expected Routine Related Transactions for year of 2022
General General 31.4488% 2021-12-23 2021-12-24
are deliberated and approved in the Meeting, for details,
Meeting of Meeting
please refer to the " Resolution Notice of Fourth
2021
extraordinary general meeting of 2021" (No. 2021-109) on
the cninfo website (Juchao Website
63
CHANGHONG MEILING CO.,LTD. Annual Report 2021
(www.cninfo.com.cn)).
(ii) Request for extraordinary general meeting by preferred stockholders whose voting rights restore
□ Applicable √ Not applicable
64
CHANGHONG MEILING CO.,LTD. Annual Report 2021
V. Directors, supervisors and senior officers
(i) Basic information
Number of
Number of
Shares held shares Shares Reasons for
Number of shares Other
Working Start dated of End date of office at Stock increased held at increase or
Name Title Sex Age restricted shares decreased in changes
status office term term period-begin options in this period-end decrease of
granted (share) this period (share)
(share) period (share) shares
(share)
(share)
Wu Currently Not
Chairman M 49 2014-7-3 2023-10-12 570,500 0 0 0 0 0 570,500
Dinggang in office applicable
Zhong Currently Not
Director, President M 49 2013-12-30 2023-10-12 236,175 0 0 0 0 0 236,175
Ming in office applicable
Yong Currently Not
Director M 53 2017-9-12 2023-10-12 0 0 0 0 0 0 0
Fengshan in office applicable
Kou Director, Deputy Currently Not
M 52 2014-7-3 2023-10-12 0 0 0 0 0 0 0
Huameng president in office applicable
Hu Director, Deputy Currently Not
M 48 2018-6-21 2023-10-12 178,050 0 0 0 0 0 178,050
Zhaogui president in office applicable
Zhao Currently Not
Director M 46 2021-12-23 2023-10-12 0 0 0 0 0 0 0
Qilin in office applicable
Hong Currently Not
Independent director M 46 2020-10-12 2023-10-12 0 0 0 0 0 0 0
yuanjia in office applicable
Currently Not
Mou Wen Independent director F 55 2020-10-12 2023-10-12 0 0 0 0 0 0 0
in office applicable
Zhao Currently Not
Independent director M 43 2020-10-12 2023-10-12 0 0 0 0 0 0 0
Gang in office applicable
Chairman of Currently Not
Shao Min M 39 2017-9-12 2023-10-12 0 0 0 0 0 0 0
Supervisory in office applicable
He Currently Not
Supervisor M 41 2017-9-12 2023-10-12 0 0 0 0 0 0 0
Xintan in office applicable
Huang Supervisor Currently F 51 2017-9-12 2023-10-12 0 0 0 0 0 0 0 Not
65
CHANGHONG MEILING CO.,LTD. Annual Report 2021
Hong in office applicable
Currently Not
Ji Ge Staff supervisor F 40 2017-12-25 2023-10-12 0 0 0 0 0 0 0
in office applicable
Sun Currently Not
Staff supervisor F 50 2021-3-30 2023-10-12 0 0 0 0 0 0 0
Hongying in office applicable
Liu Executive deputy Currently Not
M 58 2011-6-20 2023-10-12 1,689,893 0 0 0 0 0 1,689,893
Hongwei president in office applicable
Huang Currently Not
Deputy president M 52 2017-9-12 2023-10-12 356,450 0 0 0 0 0 356,450
Danian in office applicable
Tang Currently Not
Deputy president M 51 2021-3-29 2023-10-12 0 0 0 0 0 0 0
Youdao in office applicable
Pang CFO (person in charge Currently Not
M 46 2017-10-25 2023-10-12 0 0 0 0 0 0 0
Haitao of finance) in office applicable
Currently Not
Li Xia Secretary of the Board F 41 2009-5-22 2023-10-12 552,800 0 0 0 0 0 552,800
in office applicable
Office Not
Chen Ye Director M 57 2020-10-12 2021-12-10 0 0 0 0 0 0 0
leaving applicable
Zhu Office Not
Staff supervisor M 34 2015-4-8 2021-3-30 0 0 0 0 0 0 0
Wenjie leaving applicable
Total -- -- -- -- -- -- 3,583,868 0 0 0 0 0 3,583,868 --
66
CHANGHONG MEILING CO.,LTD. Annual Report 2021
1. During the reporting period, whether there was any departure of directors and supervisors and dismissal
of Senior Officers
√ Yes □ No
(1) On March 30, 2021, former security representative and staff supervisor Mr. Zhu Wenjie resigned from the position of staff
supervisor of 10th BOS and security representative of the Company for personal reasons.
(2) On December 20, 2021, non-independent director Mr. Chen Ye resigned from the Director of 10th BOD and member of the
strategy committee of the Company for personal reasons.
2. Changes of directors, supervisors and senior executives
√ Applicable □ Not applicable
Name Title Type Date Reasons
Tang Deputy Appoint Approved by 6th session of 10th BOD, Mr. Tang Youdao was appointed as
2021-3-29
Youdao president ment the Deputy president, with service term same as the 10th BOD
Voted by the 6th session of 8th Staff Congress of the Company, agreed to
Sun
Staff Be elected Ms. Sun Hongying as the staff supervisor of 10th BOS, term of
Hongyin 2021-3-30
supervisor elected office shall be from the date of deliberation and approval by Staff Congress
g
to the date of expiration of 10th BOS of the Company
Approved by Fourth Extraordinary General Meeting of Shareholders of
Zhao Be
Director 2021-12-23 2021, Mr. Wu Zhao Qilin was elected as the non-independent director of
Qilin elected
the 10th BOD with service term same as the 10th BOD
Office Resigned from the Director of 10th BOD and member of the strategy
Chen Ye Director 2021-12-10
leaving committee of the Company for personal reasons.
Zhu Staff Office Resigned from the position of staff supervisor of 10th BOS and security
2021-3-30
Wenjie supervisor leaving representative of the Company for personal reasons.
(ii) Post-holding
1. Professional background, major working experience and present main responsibilities in Company of
directors, supervisors and senior executive at the present
(1) Wu Dinggang, male, the Han nationality from Suining, Sichuan Province, was born in March 1973, Member
of CPC, owns bachelor degree, graduate from Tianjin University of Commerce China (Tianjin University of
Commerce now), major in refrigeration equipment and cryogenic technique. He served successively as GM of
Suining Sale Branch and Chengdu Sales Branch of Sichuan Changhong Electric Co., LTD, director of Sichuan
and Chongqing Marketing Management Department of Sichuan Changhong Electric Co., LTD, deputy GM of
Changhong Electronics (China) Marketing Co., GM of market planning center of Changhong Multimedia Industry,
director and GM of Le-Jia-Yi Chain Management Co., Ltd., ZhongkeMeiling Cryogenic Technology Co., Ltd.
director and GM of Sichuan Changong Air Conditioner Co., Ltd and deputy president, president, deputy chairman
and Party Secretary of the Company. Currently he serves as director, vice GM of Sichuan Changhong Electric Co.,
Ltd., chairman of the Company; Chairman of Zhongshan Changhong Electric Co., LTD; Chairman of Sichuan
Changhong Air-conditioner Co., Ltd. and Chairman of ZhongkeMeiling Cryogenic Technology Co., Ltd.
67
CHANGHONG MEILING CO.,LTD. Annual Report 2021
(2) Zhong Ming, male, the Han nationality from Meishan, Sichuan Province, was born in November 1972,
member of CPC, a senior engineer, doctoral degree, EMBA degree from University of Science and Technology of
China, PhD degree in Engineering Thermophysics. He successively served as deputy director of research
institution of Sichuan Changhong Air-conditioner Co., Ltd., deputy GM of Sichuan Changhong Air-conditioner
Co., Ltd. and technical director of household appliance group of Sichuan Changhong Electric Co., LTD. He serves
as director President and Party Secretary of the Company currently and Chairman of Hefei MeilingWulian
Technology Co., Ltd.
(3) Yong Fengshan, male, Han nationality, was born in Ding yuan, Anhui in June 1968, a member of the
Communist Party of China, a senior accountant, and a master degree holder. He ever took the posts of the director
of finance department of Hefei Cable Factory, the director of finance division and the deputy chief accountant of
Hefei Meiling Co., Ltd., the deputy general manager and chief accountant of Hefei Meiling Group Holding Co.,
Ltd., the secretary of the party committee and the GM and the president of Hefei Industrial Investment Holdings
Co., Ltd.Currently he serves asthe secretary of the party committee and the president ofHefei Industry Investment
Holding (Group) Co., Ltd., the secretary of the party committee and the GM and the president ofHefei Industrial
Investment Holdings Co., Ltd., chairman of Hefei State-owned Assets Holding Co., Ltd., the president of CAS
(Hefei) Institute of Technology Innovation Co., Ltd., chairman of Hefei Venture Capital Guiding Fund Co., Ltd.,
director of Anhui Jianghuai Automobile Co., Ltd., chairman of Hefei Kechuang Group Co., Ltd., chairman of
Hefei Talent Development Group Co., Ltd., vice chairman of Anhui Management Society, Vice chairman of Hefei
Enterprise (Entrepreneurs) Association and Chairman of Shushan Branch, and the director of the Company.
(4)Zhao Qilin, male, Han nationality, born in September 1975, graduated from Southwestern University of
Finance and Economics with a bachelor's degree in rural finance, and served as accountant of the financial
department, investment project manager, asset management manager of asset management department, manager
of investment management department, and securities affairs representative of Sichuan Changhong Electric Co.,
Ltd.; financial manager of Sichuan Changhong Innovation Investment Co., Ltd.; chief financial officer and and
joint company secretary of Changhong Jiahua Holdings Co., Ltd.. He currently serves as secretary of the board,
general counsel, office director of the board of directors, and director of the asset management department of
Sichuan Changhong Electric Co., Ltd., the controlling shareholder of the Company; director of Anjian Holdings
Co., Ltd., and director of Sichuan Changhong Innovation Investment Co., Ltd..
(5) Kou Huameng, male, the Han nationality from Yanting, Sichuan Province, was born in February 1970,
Member of CPC, master degree candidate, EMBA graduate from UESTC. He served successively as deputy
director of production office of Sichuan Changhong Electric Co., LTD, director of Guangxi Marketing
management Committee, director of Fujian-Jiangxi Marketing Management, General Manager of Changhong
Audiovisual Company and director and GM of Guangdong Changhong Digital Technology Co., Ltd.; Sichuan
68
CHANGHONG MEILING CO.,LTD. Annual Report 2021
Changhong Electric Co., Ltd, director of development management department of Sichuan Changhong Electric
Co., Ltd., and director of ChanghongHuayi Compressor Co., Ltd.; now he serves as director and deputy president
of the Company.
(6) Hu Zhaogui, male, the Han nationality, born in Feixi Hefei in October 1974, a member of the Communist
Party of China, holds a master’s degree, graduated from Chongqing University as a master of business
administration. He has served successively as the head of marketing and sales department stationed abroad of
Hefei Meiling Co., Ltd., assistant president and general manager of the freezer and washing machine business
division, and general manager of the domestic marketing division. He is currently the director and vice president
of the Company and the general manager of Sichuan Changhong Air Conditioner Co., Ltd., a subsidiary of the
Company.
(7) Hong yuanjia, male, Han nationality, born in February 1975, Shantou, Guangdong, holds a master degree,
graduated from Shanghai University of Finance and Economics majoring in international business management,
and is Fudan University MPAcc (Master of Accounting), CPA, International Accountant (AIA), intermediate
accountant, and intermediate economist. He once served as the foreign currency payable supervisor and
investment supervisor of China Eastern Airlines Co., Ltd., the deputy manager of the financial department of the
Shanghai Representative Office of SanchengHongji (Hong Kong) Co., Ltd., the accounting manager of General
Electric Lighting Co., Ltd., the accounting manager of General Electric Industrial Supply Co., Ltd., and Chief
Financial Officer of Lingji Electronics (General Electrical Industry System Power Supply). He is currently the
Chief Financial Officer of Asia Pacific Region of Yiluo Technology (Shanghai) Co., Ltd. and an independent
director of the Company.
(8) Mou Wen, female, Han nationality, born in September 1965, Hengshan, Hunan, holds a master's degree, an
accountant, and holds a master's degree in business management from Sichuan University. She previously served
as a lecturer in the School of Business Administration of Sichuan University, an Associate Professor of
Accounting in the School of Business Administration of Sichuan University, an independent director of Tibet
Mineral Development Co., Ltd., Sichuan Jinlu Group Co., Ltd., Huayi Compressor Co., Ltd., Jinhui Liquor Co.,
Ltd., Sichuan Teway Food Co., Ltd., and Hebei Baoli Engineering Equipment Group Co., Ltd., a member of
Investment Decision Advisory Committee of Sichuan Chuanjiao Road and Bridge Co., Ltd., and financial
consultant of Sichuan Daka Electric Co., Ltd., etc. She is currently Associate Professor and Master Supervisor of
Business School of Sichuan University, and an independent director of Chengdu Guibao Science and Technology
Co., Ltd., MianyangFulin Precision Machinery Co., Ltd., Sichuan Joyou Digital Technology Co., Ltd., Tibet
Mineral Development Co., Ltd., and an independent director of the Company.
(9) Zhao Gang, male, Han nationality, born in April 1977, Peixian, Jiangsu Province, is a member of the
Communist Party of China, holds a doctoral degree, graduated from the University of Science and Technology of
69
CHANGHONG MEILING CO.,LTD. Annual Report 2021
China majoring in power engineering and thermophysics. He once served as a post doctorate and an associate
professor in the Department of Mechanics and Mechanical Engineering of the University of Science and
Technology of China, a professor of orbital systems in the Department of Electronic Science and Technology, a
special researcher for foreigners in the Japan Society for the Promotion of Science, School of Engineering,
Kyushu University, Japan, and a senior research scholar in the Department of Mechanical Engineering at the
University of Washington. He is currently the executive director, professor and doctoral supervisor of the
Department of Electronic Science and Technology of the University of Science and Technology of China, the
deputy director of the Anhui Life Resources Conservation and Artificial Organ Engineering Technology Research
Center, a part-time professor of the Department of Mechanical Engineering of the University of Washington, and
an independent director of the Company.
(10)Chen Ye, male, Han nationality, native of Changzhou, Jiangsu, born in November 1963, senior engineer,
master's degree, graduated with a master's degree in business administration from Business School of the Hong
Kong University of Science and Technology. He served as an engineer of Physical and Chemical Analysis Centers
of the 46th Research Institute of CETC, deputy general manager of Tianjin Xinxing Electronics Co., Ltd.,
chairman and president of Sichuan Top Software Co., Ltd., general manager of Beijing Hongli Nico Technology
Co., Ltd., manager of planning technology department and deputy manager of asset management department of
Sichuan Changhong Electric Co., Ltd., general manager of Sichuan Changhong Innovation Investment Co., Ltd.,
general manager of Chengdu Changhong Technology Co., Ltd., and director of the Company. He resigned from
the Company on December 10, 2021, and didn’t serve as a director of the Company.
(11) Shao Min, male, Han nationality, was born in Linyi, Shandong in March 1983, and earned a bachelor’s
degree in accounting major from Xi’an Jiaotong University. He joined in work in July 2004, and ever served as
the accountant and finance manager of the branch office of Sichuan Changhong Electric Co., Ltd., the financial
director of finance department, the project manager of asset management department, manager of Assets
Operation Division of Assets Management Dept, deputy director and director of the Assets Management Dept.of
Sichuan Changhong Electric Co., Ltd. He currently serves as the head of Capital Operation Dept.of Sichuan
Changhong Electric Co., Ltd., director of Changhong Huayi Compressor Co., Ltd., director of Sichuan
Changhong New Energy Technology Co., Ltd., and the chairman of the Board of Supervisors of the Company.
(12) He Xintan, male, Han nationality, was born in Xiayi, Henan in April 1980, a member of the Communist Party
of China, an economist, and earned a master’s degree in management science and engineering from Xi’an
Jiaotong University. He joined in work in July 2002, and successively took the posts of the operations
management director of operation management department and the manager of general management office of
Sichuan Changhong Electric Co., Ltd., the deputy director of development and management department of
Sichuan Changhong Electric Co., Ltd., and a director of Changhong Huayi Compressor Co., Ltd.Currently he
serves as assistant to General Manager of Sichuan Changhong Electric Co., Ltd.and a supervisor of the Company.
70
CHANGHONG MEILING CO.,LTD. Annual Report 2021
(13) Huang Hong, female, Han nationality, was born in Shehong, Sichuan in June 1970, a member of the
Communist Party of China, a master degree holder, graduated from the University of Glasgow as a MBA, and a
senior auditor. She joined in work in July 1992, and ever served as the financial director of finance department,
the audit manager, marketing audit director, and audit chief of auditing department of Sichuan Changhong Electric
Co., Ltd. He currently serves as the deputy director of auditing department and the deputy director of labor union
audit committee of Sichuan Changhong Electric Co., Ltd., and a supervisor of the Company.
(14) Ji Ge, female, Han nationality, was born in Nanyang, Henan Province in January 1982, a member of the
Communist Party of China, and earned a bachelor’s degree in law from Hunan University and a master’s degree
from Anhui University. She joined Hefei Meiling Co., Ltd. in July 2005 and once served as the legal specialist of
legal department, the sponsor of legal affairs, and the intellectual property director of the legal department of the
Company. She currently serves as staff supervisor of the Company, member of commission for Discipline
Inspection, head of director office and risk control compliance dept., director of office of Party Committee,and
director of Discipline Inspection office.
(15)Sun Hongying, female, Han nationality, native of Tongcheng, Anhui, born in March 1972, member of the
Communist Party of China, master degree, intermediate accountant, graduated from Hefei University of
Technology with a major in accounting. She successively served as deputy director of the cost center, director of
the financial department of the refrigerator business division, and deputy director of the financial management
department of Changhong Meiling Co., Ltd.. She currently serves as employee supervisor, deputy director of the
refrigerator and freezer division of the finance and economics department, and director of the company labor
union review committee of the Company.
(16) Liu Hongwei, Male, Chinese American, bored in May 1963, Doctor of Applied Mechanics from Lehigh
University, graduate from department of mechanical engineering, Tsinghua University. He served successively in
Kulicke and Soffa Industries, Pennsylvania; Tessera Technology Corporation, Califonia; serves technical and
management post in Intel Corporation in Silicon Velleg. He joints the Hefei Meiling Co., Ltd. in 2007, now he
serves as executive deputy president of the Company.
(17) Huang Danian, male, Han nationality, was born in Huaining, Anhui in November 1969, a member of the
Communist Party of China, a senior engineer, and a master degree holder. He once served as the logistics director
and the deputy general manager, the director of the human resources department, the director of the
comprehensive planning department, head of budget management dept. , and the assistant to the general manager
of Sales Company of Hefei Meiling Co., Ltd. He is now the vice president of the Company.
(18)Tang Youdao, male, Han nationality, was born in Xuancheng, Anhui in July 1970, a undergraduate degree and
graduated from Wuhan University of Technology, majoring in industrial management engineering. He hold jobs
successively as overseas marketing manager, head of marketing dept., head of overseas marketing dept. and
71
CHANGHONG MEILING CO.,LTD. Annual Report 2021
general manager of overseas business division under the name of Hefei Meiling Co., Ltd. Currently vice president
and general manager of overseas refrigerator/washing machine division of the Company.
(19) Pang Haitao, male, Han nationality, was born in Qionghai, Hainan in May 1975, a member of the Communist
Party of China, a senior accountant, a senior political engineer, and a bachelor degree holder, and earned the
EMBA degree from Jiangxi University of Finance and Economics. He used to be a member of the finance
department, the director of related transactions and the director of capital operations of Sichuan Changhong
Electric Co., Ltd., the chief of finance office of Guangdong Changhong Electronics Co., Ltd., the director
ofgeneral ledger, the head of general management office, and the head of general ledger management office of the
finance department of Sichuan Changhong Electric Co., Ltd., the deputy general manager and chief financial
officer of Sichuan Changhong Development Co., Ltd., the deputy general manager and chief accountant of Huayi
Compressor Co., Ltd. Currently he is the chief financial officer (person in charge of finance) of the Company.
(20) Li Xia,female, the Han nationality from Qionglai, Sichuan Province, was born in October 1980, Member of
CPC and Intermediate Accountant with Master Degree. She graduated from Accounting Department of Sichuan
University Business and Management School. She ever was Project Manager in Financing & Acquisition Office
of Asset Management Department and Business Executive in Board Office of Sichuan Changhong Electronic Co.,
Ltd. she took the posts of Deputy GM and Financial Supervisor of Sichuan Changhong Innovation Investment Co.,
Ltd., and chairman of supervisory committee ofZhongkeMeiling Cryogenic Technology Co., Ltd. She is the
Secretary of the Board, deputy secretary of the Party, secretary of discipline inspection commission and general
counsel of the Company recently.
(21) Zhu Wenjie, male, the Han nationality from Hefei, Anhui Province, member of Communist Party of China,
born in January 1988, a master degree，graduated from University of science and technology of China as a MBA.,
he served as an accountant for big customer accounting in financial management department of Hefei Meiling Co.,
Ltd., securities affairs assistant at the office of secretary of the board, director of securities affairs, the
representative of securities affairs and staff supervisor. He has resigned form the Company on March 30, 2021 and
no longer holds staff supervisor of the Company.
2. Post-holding in shareholder’s unit
√ Applicable □ Not applicable
Drawing remuneration
Start date of End date of and allowance from
Name Shareholder’s unit Title
office term office term shareholder’s unit
(Y/N)
Director 2020.06.30 2023.06.29 N
Wu Dinggang Sichuan Changhong Electric Co., Ltd.
Deputy GM 2019.01.12 2023.06.29 Y
72
CHANGHONG MEILING CO.,LTD. Annual Report 2021
Hefei Industry Investment Holding (Group) Party Secretary,
Yong Fengshan 2015.02 - Y
Co., Ltd. Chairman
Secretary of the
Board of 2020.12.16 2023.6.29 Y
Directors
General counsel 2022.2.14 2023.6.29 N
ZhaiQilin Sichuan Changhong Electric Co., Ltd. Director of Board
2021.3.29 - N
Office
Director of Asset
Management 2021.3.29 - N
Department
Sichuan Changhong Electric Co., Ltd. Assistant to 2021.03.29 - Y
He Xintan
General Manager
Post-holding in
N/A
shareholder’s unit
3. Post-holding in other unit
√ Applicable □ Not applicable
Drawing
remuneration
Start date of End date of
Name Other unit Title and allowance
office term office term
from other unit
(Y/N)
Sichuan Zhiyijia Network Technology Co.,
Chairman 2021.01.25 - N
Ltd.
Wu
Lejiayi Chain Management Co., Ltd. Chairman 2019.04.25 - N
Dinggang
Sichuan Kuaiyidian Electrical Service Chain Chairman
2019.06.10 - N
Co., Ltd.
Hefei Venture Capital Guidance Fund Co., Chairman
2015.04. - N
Ltd.
CAS (Hefei) Technical Innovation Chairman
2015.04. - N
Engineering Institute Co., Ltd.
Yong Hefei State-owned Assets Holding Co., Ltd. Chairman 2015.04 - N
Fengshan
Chairman, General
Hefei Industry Investment Holding Co., Ltd. Manager, Secretary of 2008.06 - N
the Party Committee
Anhui Jianghuai Automobile Group Co.,
Director 2018.07.20 2022.03.25 N
Ltd.
73
CHANGHONG MEILING CO.,LTD. Annual Report 2021
Hefei Kechuang Group Co., Ltd. Chairman 2021.05 - N
Hefei Talent Development Group Co., Ltd. Chairman 2022.01 - N
Sichuan Changhong Innovation Investment
Director 2021.1.21 - N
Co., Ltd.
WIDEMIRACLELIMITED Director 2014.7.14 - N
Ganghong Industrial Co., Ltd. Director 2013.6.18 - N
Zhao Qilin
SUFFICIENTVALUEGROUPLIMITED Director 2013.6.18 - N
Changhong Jiahua (Hong Kong) Information
Director 2021.1.8 - N
Products Co., Ltd.
Anjian Holdings Co., Ltd. Director 2012.1.19 - N
Lejiayi Chain Management Co., Ltd. Director 2018.01.23 - N
Sichuan Zhiyijia Network Technology Co.,
Director 2019.07.25 - N
Ltd.
Hong Yuan Ground Energy Heat Tech. Co.,
Vice Chairman 2017.12.27 - N
Hu Zhaogui Ltd.
Sichuan Tianyou Guigu Technology Co.,
Director 2018.01.16 - N
Ltd.
Chengdu Guigu Environmental Tech. Co.,
Director 2018.06.30 - N
Ltd.
Associate professor,
Business School of Sichuan University 1995.02 - Y
master tutor
Chengdu Sibao Technology Co., Ltd. Independent director 2017.05.05 2021.12.07 Y
Mou Wen Mianyang Fulin Precision Machinery Co.,
Independent director 2017.06.23 2023.06.30 Y
Ltd.
Sichuan Junyi Digital Technology Co., Ltd. Independent director 2021.07.01 2024.06.30 Y
Tibet Mining Development Co., Ltd. Independent director 2021.03.09 2024.03.08 Y
Department Executive
University of Science and Technology of
Zhao Gang Director, Professor, 2011.04 - Y
China
Doctoral Supervisor
Hong Yiluo Technology (Shanghai) Co., Ltd. Asia Pacific Financial 2014.06 - Y
yuanjia Director
Changhong Huayi Compressor Co., Ltd. Director 2021.02.25 2024.05.12 N
Sichuan Changhong New Energy
Director 2018.05.10 2024.12.19 N
Shao Min Technology Co., Ltd.
Sichuan Changhong Electronics Holding Head of Capital
2021.03 - Y
Group Co., Ltd. Operation Dept.
Huang Hong Sichuan Changhong Electronics Holding Deputy Director of 2011.09.16 - Y
74
CHANGHONG MEILING CO.,LTD. Annual Report 2021
Group Co., Ltd. Audit Department
Pang Haitao Hefei Xingmei Asset Management Co., Ltd. Director 2018.02.05 - N
Post-holding
N/A
in other unit
4. Punishment of securities regulatory authority in recent three years to the company’s current and
outgoing directors, supervisors and senior management during the reporting period
□ Applicable √ Not applicable
(iii) Remuneration of directors, supervisors and senior executives
1. Decision-making, determine basis and actually payment of remuneration for directors, supervisors and
senior executives
(1) Procedure for deciding remunerations of directors, supervisors and senior management
Implemented in line with laws, regulations and relevant rules of “Company Law”, “Article of Association” and
“Enforcement Regulation of Remuneration and Evaluation Committee of the Board”, including:
Allowance plan of independent directors are implemented after deliberated in the Board and approved in
Shareholders’ General Meeting. Other directors and non-staff supervisors except independent directors are
received no remuneration from the Company.
Remuneration of senior executives are deliberated and approved by the Board according to remuneration
evaluation plan together with opinions of Remuneration and Evaluation Committee.
The remuneration appraisal and payment for directors and senior executive of the Company for Current Year will
disclose in the Annual Report after review without objection from Remuneration & Appraisal Committee of the
Board and submit to the BOD for Current Year.
(2) Bases on which remunerations of directors, supervisors and senior management are decided
The Company conducted the performance examination on the task of directors, supervisors and senior executives
according to the HR management policy, wages of directors, supervisors and senior executives are decided by
their performance and evaluations check by the Company. All wages are performing by the evaluation results
according to the only evaluation standard that carried by the Company.
(3) Actual payment of remunerations of directors, supervisors and senior management
Allowance of the independent directors are paid by the standards approved in Annual Shareholders’ General
Meeting, other director, who serves as senior executive at the same time, and non-staff supervisors except
independent directors did not received remuneration from the Company; remunerations for senior executives of
75
CHANGHONG MEILING CO.,LTD. Annual Report 2021
the Company are paid strictly by the unify remuneration valuation mechanism of the Company.
Directors, supervisors and senior executives of the Company has 19 in total up to 31 December 2021, actually 13
person receiving remuneration from the Company, 2 staff supervisors are received their remuneration by actual
positions (non-supervisor post); furthermore, 3 independent directors are received the allowance monthly from the
Company; the Company will pay remuneration to senior executives in line with the performance appraisal by
monthly, quarterly and annual.
During the reporting period, the Company has established the executive compensation and performance
management program for the senior management of 2021 in accordance with the main scope, the responsibilities,
the importance of the management positions of the senior management, and the compensation level of other
relevant company and position, the program includes but not limited to the company's key performance indicator
(KPI) and performance evaluation criteria, procedures and major evaluation system; the major programs of the
reward and punishment; review the performance of duties of the company's senior management and conduct the
annual performance appraisal.
At the end of Current Year, the Remuneration and Appraisal Committee combined the work report and
self-evaluation of the senior management in 2021, followed the performance evaluation criteria and procedures,
and evaluated the Key Performance Indicator (KPI) of the senior management in 2020; and other relevant
indicators of performance evaluation; proposed the remuneration amount and performance appraisal approach of
the senior management based on the job performance evaluation results and the remuneration policy, and reported
to the Board for deliberation.
2. Remuneration for directors, supervisors and senior executives in reporting period
In 10 thousand yuan
Total Whether
remuneration remuneration
Name Title Sex Age Post status obtained from the obtained from
Company (before related party of
taxes) the Company
Currently in Y
Wu Dinggang Chairman M 49 0
office
Currently in N
Zhong Ming Director, President M 49 45.56
office
Currently in 0 Y
Yong Fengshan Director M 53
office
Currently in 35.08 N
Kou Huameng Director, Deputy president M 52
office
76
CHANGHONG MEILING CO.,LTD. Annual Report 2021
Currently in 60.22 N
Hu Zhaogui Director, Deputy president M 48
office
Currently in 0 Y
Zhao Qilin Director M 46
office
Currently in 11.90 N
Hong yuanjia Independent director M 46
office
Currently in 11.90 N
Mou Wen Independent director F 55
office
Currently in 11.90 N
Zhao Gang Independent director M 43
office
Currently in 0 Y
Shao Min Chairman of Supervisory M 39
office
Currently in 0 Y
He Xintan Supervisor M 41
office
Currently in 0 Y
Huang Hong Supervisor F 51
office
Currently in 32.33 N
Ji Ge Staff supervisor F 40
office
Currently in 29.16 N
Sun Hongying Staff supervisor F 50
office
Currently in 71.31 N
Liu Hongwei Executive deputy president M 58
office
Currently in 35.33 N
Huang Danian Deputy president M 52
office
Currently in 380.12 N
Tang Youdao Deputy president M 51
office
CFO (person in charge of Currently in 42.59 N
Pang Haitao M 46
finance) office
Currently in 30.31 N
Li Xia Secretary of the Board F 41
office
Chen Ye Director M 57 Office leaving 0 Y
Zhu Wenjie Staff supervisor M 34 Office leaving 5.85 N
Total -- -- -- -- 803.56 --
VI. Responsibility performance of directors during the reporting period
(i) The board of directors during the reporting period
77
CHANGHONG MEILING CO.,LTD. Annual Report 2021
Session of
Date of meeting Disclosure date Meeting resolutions
meeting
Totally 5 proposals including Invested Wealth Management Products with Part of the Idle
Fund Raising and Investment and Establishment of a Wholly-Owned Subsidiary by
The 5th
Zhongke Meiling Cryogenic Technology Co., Ltd- Controlling Subsidiary of the Company
session of 2021-3-2 2021-3-3
are deliberated and approved in the Meeting, for details, please refer to the "Resolution
10th BOD
Notice of the 5th session of 10th BOD" (No. 2021-008) on the cninfo website (Juchao
Website (www.cninfo.com.cn)).
Totally 27 proposals including Report on Works of BOD for year of 2020, Annual Report
The 6th of 2020 and Its Summary and Financial Statement Report for year of 2020 are deliberated
session of 2021-3-29 2021-3-31 and approved in the Meeting, for details, please refer to the "Resolution Notice of the 6th
10th BOD session of 10th BOD" (No. 2021-013) on the cninfo website (Juchao Website
(www.cninfo.com.cn)).
Totally 6 proposals including The Q1 Report of 2021, Provision for Credit Losses and
The 7th
Provision for Decline in Value of Inventories are deliberated and approved in the Meeting,
session of 2021-4-19 2021-4-20
for details, please refer to the "Resolution Notice of the 7th session of 10th BOD" (No.
10th BOD
2021-028) on the cninfo website (Juchao Website (www.cninfo.com.cn)).
Totally 3 proposals including Investment in Building the Industrial Internet Service
Capacity by Subsidiary- Hefei Meiling Wulian Technology Co., Ltd, The Company Applied
The 8th for a Special Credit Line of Up to 400 million yuan for the Note Pool from Jiujiang Bank,
session of 2021-5-26 2021-5-27 Hefei Branch and Holding the First Extraordinary Shareholders General Meeting of 2021
10th BOD are deliberated and approved in the Meeting, for details, please refer to the "Resolution
Notice of the 8th session of 10th BOD" (No. 2021-038) on the cninfo website (Juchao
Website (www.cninfo.com.cn)).
Totally 9 proposals including Purchasing the Liability Insurance for
Director/Supervisor/Senior Executives, Increased the Expected Routine Related
The 9th Transactions for year of 2021 and The Company Applied for a Maximum Credit Line of
session of 2021-7-12 2021-7-13 300 million yuan from Hefei Branch of China Minsheng Bank are deliberated and
10th BOD approved in the Meeting, for details, please refer to the "Resolution Notice of the 9th
session of 10th BOD" (No. 2021-050) on the cninfo website (Juchao Website
(www.cninfo.com.cn)).
Totally 10 proposals including Semi-Annual Report (Full-text) of 2021 and its Summary,
The 10th Provision for Credit Losses and Provision for Decline in Value of Inventories are
session of 2021-8-16 2021-8-18 deliberated and approved in the Meeting, for details, please refer to the "Resolution Notice
10th BOD of the 10th session of 10th BOD" (No. 2021-060) on the cninfo website (Juchao Website
(www.cninfo.com.cn)).
Totally 2 proposals including Continue Implementation and Adjustment Partially of the
Repurchase Program of Certain Domestic Listed Foreign Shares (B Share) and Holding
The 11th
the Third Extraordinary Shareholders General Meeting of 2021 are deliberated and
session of 2021-8-24 2021-8-25
approved in the Meeting, for details, please refer to the "Resolution Notice of the 11th
10th BOD
session of 10th BOD" (No. 2021-067) on the cninfo website (Juchao Website
(www.cninfo.com.cn)).
78
CHANGHONG MEILING CO.,LTD. Annual Report 2021
Totally 18 proposals including The Q3 Report of 2021, Provision for Credit Losses,
The 12th Provision for Decline in Value of Inventories and Disposal of Non-Current Assets are
session of 2021-10-19 2021-10-20 deliberated and approved in the Meeting, for details, please refer to the "Resolution Notice
10th BOD of the 12th session of 10th BOD" (No. 2021-081) on the cninfo website (Juchao Website
(www.cninfo.com.cn)).
Totally 12 proposals including Amend Some Article of the Article of Association, Amend
The 13th Some Articles of Rules of Procedure for Shareholders General Meeting and Expected
session of 2021-12-6 2021-12-7 Routine Related Transactions for year of 2022 are deliberated and approved in the
10th BOD Meeting, for details, please refer to the "Resolution Notice of the 13th session of 10th
BOD" (No. 2021-091) on the cninfo website (Juchao Website (www.cninfo.com.cn)).
One proposal on By-Election of the Non-independent Director of 10th BOD of the
The 14th
Company was deliberated and approved in the Meeting, for details, please refer to the
session of 2021-12-12 2021-12-13
"Resolution Notice of the 14th session of 10th BOD" (No. 2021-101) on the cninfo website
10th BOD
(Juchao Website (www.cninfo.com.cn)).
Totally 3 proposals including Increase in Expected Routine Related Transactions for 2021,
Agree Sichuan Zhiyijia Network Technology Co., Ltd Provided External Guarantee and
The 15th
Holding the First Extraordinary Shareholders General Meeting of 2022 are deliberated
session of 2021-12-20 2021-12-21
and approved in the Meeting, for details, please refer to the "Resolution Notice of the 15th
10th BOD
session of 10th BOD" (No. 2021-104) on the cninfo website (Juchao Website
(www.cninfo.com.cn)).
(ii) The attending of directors to Board meetings and shareholders general meeting
The attending of directors
Times of
Times of Board
Times of Times of Times of Absent the Meeting for attending the
meeting supposed Times of
Director present in attending by entrusted the second time in a row shareholder
to attend in the Absence
person communication presence (Y/N) general
report period
meeting
Wu Dinggang 11 2 9 0 0 N 3
Zhong Ming 11 2 9 0 0 N 5
Yong
11 0 11 0 0 N 0
Fengshan
Kou
11 2 9 0 0 N 3
Huameng
Chen Ye 9 1 8 0 0 N 2
Zhao Qilin 0 0 0 0 0 N 0
Hu Zhaogui 11 1 10 0 0 N 0
Hong yuanjia 11 1 10 0 0 N 1
Mou Wen 11 2 9 0 0 N 2
79
CHANGHONG MEILING CO.,LTD. Annual Report 2021
Zhao Gang 11 2 9 0 0 N 4
Explanation of absent the Board Meeting for the second time in a row
During the reporting period, none of the directors failed to attend two consecutive Board Meeting in person.
(iii) Objection for relevant events from directors
Whether directors come up with objection about company’s relevant matters or not
□ Yes √ No
Directors has no objections for relevant events in reporting period
(iv) Other explanation about responsibility performance of directors
Whether the opinions from directors have been adopted or not
√ Yes □ No
During the reporting period, the directors of the company strictly followed the Company Law, the Securities Law,
the Listing Rules of Shenzhen Stock Exchange, and the Self-Discipline Supervision Guidelines for Listed
Companies of Shenzhen Stock Exchange No. 1 - Standardized Operation of Main Board Listed Companies" and
other laws and regulations, actively attended the company's board meetings and the company's general meeting of
shareholders, performed duties conscientiously and diligently, made prudent and scientific decisions on various
matters reviewed by the company's board meetings, and all their professional suggestions on the company’s major
decisions have been adopted .
VII. The special committees under the board during the reporting period
Specific
Number
Other circumstances
Committee of Important comments and
Members Date of Meeting content performance of the
name meetings suggestions made
meeting of duties objection (if
held
applicable)
Wu Reviewed one proposal on
Dinggang, the Investment and
Yong Establishment of a The proposal was
Fengshan, Wholly-owned Subsidiary deliberated and approved Not
2021-2-25 N/A
Zhong by the Holding Subsidiary and agreed to submit to the applicable
Strategy Ming, Zhongke Meiling BOD for consideration
2
Committee Kou Cryogenic Technology Co.,
Huameng, Ltd.
Hu
Reviewed two proposals on The above mentioned
Zhaogui, Not
2021-3-19 the Company's 2021 proposal was deliberated N/A
Chen Ye, applicable
Development Plan and and approved and agreed to
Zhao
80
CHANGHONG MEILING CO.,LTD. Annual Report 2021
Gang Proposal on the Company's submit to the BOD for
Shareholders Return consideration
Planning in the Next Three
Years (2021-2023).
Reviewed two proposals on
the Financial Statement
Report for year of 2020 and
The above mentioned
Arrangement of Internal Not
2021-1-28 proposals are deliberated N/A
Control Auditing and applicable
and approved
Un-audited Financial
Accounting Statement for
year of 2020
Reviewed one proposal on
Preliminary Draft of the The proposal was Not
2021-3-10 N/A
Audit on Financial deliberated and approved applicable
Statement for year of 2020
The proposal were
Reviewed five proposals
deliberated and approved
on” Audited Financial
and agreed to submit the
Statement Report of 2020”,
following 4 proposals as ”
“Auditing Report of
Audited Financial
Hong Internal Control for year of
Statement Report of
yuanjia, 2020”, ‘Summary Report
Audit 2020”,“Auditing Report of
Mou Wen, 6 on Auditing Works for year
Committee Internal Control for year of
Zhao of 2020 from Shine Wing Not
2021-3-28 2020”,“Auditing Institution N/A
Gang Certified Public Account”, applicable
for Financial Report of
“Auditing Institution for
2021 and Internal Control
Financial Report of 2021
Auditing Re-engagement
and Internal Control
and Remuneration Paid”
Auditing Re-engagement
and “Opening Business of
and Remuneration Paid”,
Forward Exchange” to the
and “Opening Business of
BOD for consideration
Forward Exchange”
The proposal was
Reviewed one proposal on
deliberated and approved Not
2021-4-16 the “Financial Statement of N/A
and agreed to submit to the applicable
1Q of 2021”
BOD for consideration
The proposal was
Reviewed one proposal on
deliberated and approved Not
2021-8-6 the “Financial Statement of N/A
and agreed to submit to the applicable
Semi-annual 2021”
BOD for consideration
2021-10-15 The proposal was Not N/A
81
CHANGHONG MEILING CO.,LTD. Annual Report 2021
Reviewed one proposal on deliberated and approved applicable
the “Financial Statement of and agreed to submit to the
3Q of 2021” BOD for consideration
Reviewed one approved on
the Proposal on the
The proposal was
Qualification Examination
deliberated and approved Not
Mou Wen, 2021-3-19 of the Company’s BOD for N/A
and agreed to submit to the applicable
Wu the Senior Managers
BOD for consideration
Dinggang, Planned to Be Appointed
Nomination
Hong 2 by the Company”
Committee
yuanjia, Reviewed one proposal
Zhao Proposal to Review the The proposal was
Gang Qualification of deliberated and approved Not
2021-12-10 N/A
Non-Independent Directors and agreed to submit to the applicable
to be Elected by 10th BOD BOD for consideration
of the Company
The proposal was
Zhao Reviewed one approved
deliberated and approved
Gang, Wu onthe "Appraisal and
Remuneration by the Meeting and agreed
Dinggang, Payment of Remuneration Not
and Appraisal 1 2021-3-19 to submit to the annual N/A
Mou Wen, of Directors and Senior applicable
Committee meeting of the Board for
Hong Executives in Current Year
consideration as part of the
yuanjia 2020"
Annual Report
VIII. Works from Supervisory Committee
Whether the Company has risks or not in reporting period that found in supervisory activity from supervisory
committee
□Yes √ No
Supervisory committee has no objection about supervision events in reporting period
IX. Staff of the Company
(i) Numbers, professional structure and education background
On-job employee in parent company at period-end (people) 4,614
On-job employee in main subsidiary at period-end(people) 8,201
Total on-job employees at period-end(people) 12,815
Current total payroll(people) 12,815
Number of retired employees with expenses paid by the parent company
83
and main subsidiary (people)
Professional structure
Types of professional category Numbers of professional category (people)
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CHANGHONG MEILING CO.,LTD. Annual Report 2021
Production staff 7,200
Salesman 2,822
Technician 2,273
Financial staff 195
Administration staff 325
Total 12,815
Education background
Type of education background Numbers (people)
High school and below 8,283
Junior college 1,981
Undergraduate 2,380
Master and above 171
Total 12,815
(ii) Remuneration policy
The Company formulated human resources and compensation policy conducive to sustainable development of
enterprise according to the provisions of relevant laws and policies promulgated by the state and to the Company's
actual situation.
In order to implement the core values of co-creation and sharing, especially to mobilize the work initiative and
enthusiasm of grass-roots employees, based on the overall design idea of “building a small management & control
platform, making a refined business platform and a one-line decision-making power”, further decentralization,
effectively activate the team. In order to comprehensively and effectively evaluate and quantitatively evaluate
employee performance growth, the guide departments actively found out where they had lagged behind, made up
for shortcomings, and continued to narrow the gap with benchmarks. The company made the design, monitoring
and evaluation rules to performance growth indicator (GPI) system, which effectively guided employee
performance growth and continuously improved the professional ability and work efficiency of employees. At the
same time, an applicable compensation adjustment mechanism was established based on the growth level of
employees, continuously motivating employees to pursue excellence and stimulating vitality. In order to promote
the achievement of the performance of each unit, the company optimized and adjusted the incentive system this
year, strengthened the quantitative reflection of incremental value and operating results, and adjusted the incentive
system to annual operating results incentives and process value creation incentives, so as to improve the
operational efficiency and vitality of business units. Continued to promote the application of the whole-process
performance management system, optimized the information management of performance communication,
performance feedback, and growth communication mechanisms, and encouraged employees to develop together
with the company. The company established and optimized a unified evaluation mechanism for job promotion, set
up position systems and promotion channels, implemented the point system evaluation criteria and internal job
83
CHANGHONG MEILING CO.,LTD. Annual Report 2021
competition mechanism, and incorporated annual evaluation and competition into the normalization, and
gradually formed the employment mechanism of “those who want to do a job have a chance, those who can do a
job have a platform, and those who get things done have a status”. At the same time, the company shaped the
corporate culture by providing various holidays, allowances, condolences, and organizing a variety of leisure
activities, sports culture festival, carnivals, etc. so as to improve the employee satisfaction.
(iii) Training plans
Training plan: The Company has established the Human Resources Strategic Layout,Training Management
Program, Annual Talent Development & Training Plan and other systems and standard work flows, set up the
staff capacity model, built Meiling online learning system and the knowledge assets management system of
Changhong Meiling and gradually established the growth mechanism by combining the training with the
individual employee development, and combining the qualification promotion with the career development.
1. The mechanism for the selection, education and use of reserve talents gradually presented. The Company
established a clear evaluation model for talent standards, completed the talent standards for management position,
supervisory professional position and professional positions in each series; focused on advancing the project for
talent construction, and optimized the high-level talent development echelons such as reserve leaders, reserve
cadres, reserve leaders, and outstanding university students, and realized the dynamic talent management;
establish succession maps for each sequence of talents, and clarify the ability status of existing talent teams and
future talent succession systems.
2. Accurate training improved training effect. In order to effectively support the company's business policy of "one
goal, three main lines", we built a multi-level and multi-category talent training system based on business needs.
On the one hand, improved the training enthusiasm and professional ability of the trainees through the project
points system, industry exchanges and other activities, on the other hand, aiming at the common shortcomings of
the team and the shortcomings of personal ability, introduced external training courses and internal course
development to effectively promote the precise training plan. At the same time, we established a classified
management and organizational guarantee system for training projects, and strengthened training process
management through methods such as course directional push, node management and control, project review, and
training examinations, and the training effect and the number of talent promotions have gradually emerged.
3. Built an internal knowledge asset management system, jointly built an internal knowledge asset information
system with a third party, and redefined the company's knowledge asset standards and organizational guarantee
system. On the one hand, we integrated the online learning system, and improve the unified planning,
classification, and tag retrieval of the knowledge asset management system and the knowledge system of online
learning system, effectively established the prototype of the company-level knowledge assets, and we would
continue to supplement and improve knowledge assets in the later stage. On the other hand, continued to promote
the supplement and update of Meiling's knowledge assets database of "technology, management, manufacturing,
84
CHANGHONG MEILING CO.,LTD. Annual Report 2021
quality, safety and environmental protection". On the basis of "internal trainer certification system" and
"benchmark job knowledge extraction project", optimized professional series of live courses, and internalized the
company's standardized talent knowledge base, and carried out inheritance and influence.
(iv) Labor outsourcing
□ Applicable √ Not applicable
X. Profit distribution plan and capitalizing of common reserves plan
(i) Formulation, Implementation and Adjustment of Profit Distribution Policy Especially Cash Dividend
policy during the Reporting Period
√ Applicable □ Not applicable
During the reporting period, the company has strictly executed the profit distribution policy in accordance with
the "Articles of Association", the formulation and implementation of the company's cash dividend policy are in
line with the provisions of "Articles of Association" and the requirements of the resolutions of shareholders'
meeting, the dividends standards and proportion have been definite and clear, relevant decision-making
procedures and mechanisms have been complete, the responsibilities of independent directors have been clear and
have played its due role, minority shareholders have had the opportunities to fully express their views and
aspirations, and the legitimate interests of minority shareholders have been maintained. In addition, the
“Changhong Meiling Co., Ltd. Shareholders Return Planning in the Next Three Years (2021-2023)” approved by
the company's board of directors and the resolutions of shareholders’ general meeting has made clear plans for the
form and priority of profit distribution, the interval of profit distribution, the specific conditions and proportions of
cash dividends, and the specific conditions for issuing stock dividend.
In the reporting period, the Company implemented Profit distribution plan for year of 2020, that is, based on the
1,035,528,412 shares (deducted the 9,069,469 B-share repurchased which are not participated in distribution from
total share capital of the Company dated December 31, 2020, that is 1,044,597,881 shares), distribute 0.5 yuan
(tax included) in cash for every 10 shares held by all shareholders of the Company, total cash dividend of
51,776,420.60 yuan was distributed.
Special explanation on cash dividend policy
Satisfy regulations of General Meeting or requirement of Article of Association (Y/N): Y
Well-defined and clearly dividend standards and proportion (Y/N): Y
Completed relevant decision-making process and mechanism (Y/N): Y
Independent directors perform duties completely and play a proper role (Y/N): Y
Minority shareholders have opportunity to express opinions and demands totally and their legal Y
85
CHANGHONG MEILING CO.,LTD. Annual Report 2021
rights are fully protected (Y/N):
Condition and procedures are compliance and transparent while the cash bonus policy adjusted or
Y
changed (Y/N):
(ii) The Company is profitable during the reporting period and the parent company has positive profit
available for distribution to shareholders without cash dividend distribution plan proposed
□ Applicable √ Not applicable
(iii) Profit distribution plan and capitalizing of common reserves plan for the Period
√ Applicable □ Not applicable
Bonus shares for every 10-share (Share) 0
Dividends for every 10-share (RMB) (Tax included) 0.5
Shares added for every 10-share base (Share) 0
Equity base of distribution plan (Share) 1,029,923,715
Total cash dividend (RMB) (Tax included) 51,496,185.75
Cash dividend for other ways (i.e. repurchased) (RMB) 16,501,235.20
Total cash dividend (including other way) (RMB) 67,997,420.95
Profits available for distribution (RMB) 733,649,425.65
Ratio of cash dividend (including other way) in total profit
100%
distribution
Cash dividend
Taking the total share capital on the equity registration date of the company’s future implementation of the 2021 annual equity
distribution plan as the base, distribute cash dividends of 0.5 yuan (tax included) for every 10 shares to all shareholders, not giving
bonus shares, and not converting capital reserve in to equity.
On February 18, 2022, the implementation of shares buy-back of domestically listed foreign shares (B-Share) was completed and
the cancellation of the buy-back shares are finished on March 2, 2022. After cancellation, total share capital of the Company
amounted to 1,029,923,715 shares, and the matters relating to the registered capital reduction and Article of Association
amendment have yet to be submitted to the shareholders general meeting for consideration.
Detail explanation on profit distribution or capitalization from capital public reserve
For year of 2021, the individual statement of the parent company show net profit of 67,464,464.66 yuan, according to the
auditing from Shine Wing Certified Public Accountants (LLP). In accordance with relevant regulations, the retained profit at
beginning of Current Year amounted as 943,879,339.46 yuan, deducted the 2020 profit distributed 51,776,420.60 yuan and
after extract for statutory surplus reserve 6,746,446.47 yuan, the retained profit in individual statement of the parent company
cumulative counted as 952,820,937.05 yuan at end of 2021. In addition, for year of 2021, the net profit attributable to owners of
parent company amounted as 51,898,388.84 yuan, caliber of the consolidated statement undistributed profit at the beginning of
the year is 740,754,202.23 yuan, deducted the 2020 profit distributed 51,776,420.60 yuan and after extract for statutory
surplus reserve 6,746,446.47 yuan, accumulated retained profit according to the consolidated statement at the end of 2021
86
CHANGHONG MEILING CO.,LTD. Annual Report 2021
counted as 734,129,724.00 yuan.
According to relevant regulations, the company's profit distribution shall be based on the profit available for distribution of the
parent company, and shall comply with the principle of the lower of the profit accumulative available for distribution in the
consolidated statement and the parent company's statement. Therefore, the profit available for distribution in 2021 is the cumulative
undistributed profit of 734,129,724.00 yuan in the consolidated statement at the end of 2021.
Pursuit to relevant rules and regulation of Article of Association, and considering the interest of shareholders and long-term
development needs of the Company, proposed recommendations:Taking the total share capital on the equity registration date of the
company’s future implementation of the 2021 annual equity distribution plan as the base, distribute cash dividends of 0.5 yuan (tax
included) for every 10 shares to all shareholders, not giving bonus shares, and not converting capital reserve in to equity. On
February 18, 2022, the implementation of shares buy-back of domestically listed foreign shares (B-Share) was completed and the
cancellation of the buy-back shares are finished on March 2, 2022. After cancellation, total share capital of the Company amounted
to 1,029,923,715 shares, and the matters relating to the registered capital reduction and Article of Association amendment have yet
to be submitted to the shareholders general meeting for consideration. Taking the total 1,029,923,715 shares after cancellation as
the base, a cash dividend of 51,496,185.75 yuan is expected to be paid.
After distribution, the retained profit of the parent company amounted as 901,324,751.30 yuan, rests of the retained profit will
carry-over for distribute in later years.
XI. Implementation of the Company’s stock incentive plan, employee stock ownership plan or other
employee incentives
□ Applicable √ Not applicable
The Company has no equity incentive plan, employee stock ownership plans or other employee incentives.
XII. Construction and implementation of internal control system during the reporting period
(i) Construction and implementation of internal control
In accordance with the Basic Norms for Enterprise Internal Control and its supporting guidelines, and the
Information Disclosure Compilation Rules for Companies Publicly Issuing Securities No. 21 - General Provisions
on Annual Internal Control Evaluation Reports jointly issued by the China Securities Regulatory Commission and
the Ministry of Finance and other relevant regulations, and combined with the Company's internal control system
and internal control evaluation methods, the company organized its internal control work, effectively implemented
internal control, and continuously improved and optimized the company's internal control system so as to adapt to
the needs and changes of the internal and external environment.
The company's 2021 Annual Internal Control Self-Assessment Report fully, truly and accurately reflected the
actual situation of the company's internal control. The units, businesses and matters included in the assessment
scope, as well as high-risk areas, covered the main aspects of the company's operation and management, and the
company maintained effective internal controls in high-risk areas and in all material aspects. During the reporting
period, the company had no major defects and significant defects in internal control.
(ii) Details of major defects in IC appraisal report that found in reporting period
87
CHANGHONG MEILING CO.,LTD. Annual Report 2021
□Yes √ No
XIII. Management and controls on the subsidiary during reporting period
Problems
Name of Integration Follow-up
Integration plan encountered in Actions taken Resolve progress
company progress resolution plan
integration
Not applicable - - - - - -
XIV. Internal control self-assessment report or internal control audit report
(i) Appraisal Report of Internal Control
Date of evaluation report of internal control disclosed (Full-text) 2022-3-31
Index of evaluation report of internal control disclosed (Full-text) Juchao Website (www.cninfo.com.cn)
The ratio of the total assets of units included in the scope of evaluation accounting for the total
99.48%
assets on the company's consolidated financial statements
The ratio of the operating income of units included in the scope of evaluation accounting for the
99.58%
operating income on the company's consolidated financial statements
Defects Evaluation Standards
Category Financial Reports Non-financial Reports
1. Material defect: severally or jointly with other defects, will lead to material
wrong reporting in financial reports being not able to prevented or found or
Occurrence of the followings shall be
rectified in a timely manner. Occurrence of the followings will be deemed as
deemed as material defect, otherwise as
material defect:
major defect or general defect subject to
1. inefficiency of environment control;
the level of influence.
2. fraud of directors, supervisors and senior management;
1. breach of national laws, regulations or
3. The external auditor finds material wrong reporting in current financial
regulatory documents;
statement, while the Company has not found such reporting during its
2. procedure for making significant
operation;
decisions is not scientific;
Qualitative 4. The material defect identified and reported to the management fails to be
3. absence of system may lead to invalid
criteria rectified in a reasonable time period;
system;
5. The audit committee and audit department of the Company exercise invalid
4. Material or major defects are not likely
supervision upon internal control;
to rectify;
6. Other defects which may affect financial statement users to make correct
5. Large negative effects on the company
judgment.
and disclosed in the form of
2. Major defect: severally or jointly with other defects, will lead to wrong
announcement;
reporting in financial reports being not able to prevented or found or rectified
6. Other issues that materially affect the
in a timely manner which still needs attention from the management though it
Company.
doesn’t reach or exceed material defect as described above. Occurrence of the
followings will be deemed as major defect:
88
CHANGHONG MEILING CO.,LTD. Annual Report 2021
(1) Financial losses caused by guaranteeing and investing in securities and
financial derivatives transactions and disposing property right and stock right
without authorization;
(2) The company's financial staff or other relevant business personnel have
unclear powers and responsibilities or job chaos, or are suspected of being
involved in economic or job-related crimes and have been transferred to the
judiciary;
(3) Punishment or severely negative impacts on the company's image due to
the bias implementation of the policy or accounting errors, etc.;
(4) Financial losses caused by destroying, concealing, or altering the important
original evidences at will, such as invoices and checks, etc.
(5) Cash income is not entered into the account book, or public funds are
deposited in private account or "private coffer" is established by breaking the
rules.
3. General defect: other internal control related defects that do not constitute
material defects or major defect.
1. Proportion of direct property loss in
total operating income: Material defect:
wrong reporting ≧0.1%; Major defect:
0.05% ≤ wrong reporting＜0.1%; General
1. Proportion of potential wrong reporting in total operating income: defect: wrong reporting＜0.05%.
Material defect: wrong reporting ≧0.5%; Major defect: 0.1% ≤ wrong 2. Proportion of direct property loss in
reporting＜0.5%; General defect: wrong reporting＜0.1%. total profit: Material defect: wrong
2. Proportion of potential wrong reporting in total profit: Material defect: reporting ≧10%; Major defect: 5% ≤
wrong reporting ≧10%; Major defect: 5% ≤ wrong reporting＜10%; General wrong reporting＜10%; General defect:
Quantitative defect: wrong reporting＜5%. wrong reporting＜5%.
standard 3. Proportion of potential wrong reporting in total assets: Material defect: 3. Proportion of direct property loss in
wrong reporting ≧0.5%; Major defect: 0.1% ≤ wrong reporting ＜ 0.5%; total assets: Material defect: wrong
General defect: wrong reporting＜0.1%. reporting ≧0.2%; Major defect: 0.1% ≤
4. Proportion of potential wrong reporting in total owners’ equity: Material wrong reporting＜0.2%; General defect:
defect: wrong reporting ≧0.5%; Major defect: 0.1% ≤ wrong reporting＜0.5%; wrong reporting＜0.1%.
General defect: wrong reporting＜0.1%. 4. Proportion of direct property loss in
total owners’ equity: Material defect:
wrong reporting ≧0.2%; Major defect:
0.1% ≤ wrong reporting＜0.2%; General
defect: wrong reporting＜0.1%.
Amount of significant defects in financial
0
reports
Amount of significant defects in non-financial
0
reports
Amount of important defects in financial 0
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CHANGHONG MEILING CO.,LTD. Annual Report 2021
reports
Amount of important defects in non-financial
0
reports
(ii) Auditing report of internal control
√ Applicable □ Not applicable
Deliberation section of auditing report of IC
We consider that: in all major aspects, Changhong Meiling Co., Ltd. has efficiency in financial report of internal control dated 31 December
2021 according to Basic Standards of Internal Control for Enterprise and relevant regulations.
Disclosure details of audit report of internal control Disclosed
Disclosure date of audit report of internal control
2022-3-31
(full-text)
Index of audit report of internal control (full-text) Juchao Website (www.cninfo.com.cn)
Opinion type of auditing report of IC Standard unqualified
whether the non-financial report had major defects No
Whether CPA carries out qualified opinion for audit report of internal control or not
□Yes √ No
Whether the opinions are consistent in audit report of internal control carrying out by CPA and the self-evaluation
report of the Board or not
√ Yes □ No
XV. The rectification of self-examination problems in the special actions on governance of listed companies
According to the Announcement on Launching Special Actions on the Governance of Listed Companies" (CSRC
[2020] No. 69) of China Securities Regulatory Commission, the company followed the principle of seeking truth
from facts, strictly compared with the "Special Self-examination List on Governance of Listed Companies", and
carefully sorted out the existing problems. Through this self-examination, the Company believed that its corporate
governance complied with the requirements of the Company Law, the Securities Law, and the Standardized
Operation of Main Board Listed Companies and other laws and regulations. The problems found in the company's
self-examination and sorting out and the rectifications were as follows:
(i) Subsidiary holding shares of listed companies and the rectification
1. Meiling Group, a wholly-owned subsidiary of the company, held 1,141,053 restricted shares of the Company.
The restricted shares held by Meiling Group were the consideration shares received for the share reform on behalf
90
CHANGHONG MEILING CO.,LTD. Annual Report 2021
of other non-tradable shareholders in the company's reform plan for non-tradable shares. In March 2016,
according to the approval of the State-owned Assets Supervision and Administration Commission of the State
Council, the 49,477,513 state-owned shares (including the already held 47,823,401 shares and the unrecovered
relevant rights of the consideration of 1,654,112 shares received for the share reform on behalf of other
non-tradable shareholders in the company's reform plan for non-tradable shares) of the Company held by Hefei
Xingtai Holdings Group Co., Ltd., the company's original shareholder, should be transferred to Industry
Investment Group free of charge. Therefore, the restricted shares of the Company held by Meiling Group should
be transferred to Industry Investment Group free of charge.
2. According to the approval of the State-owned Assets Supervision and Administration Commission of the State
Council and the regulations of relevant departments, Meiling Group should transfer the shares paid on behalf of
others and related rights held by it to Industry Investment Group at one time free of charge after recovering all the
1,654,112 shares of consideration for the share reform. At present, Meiling Group has only recovered 1,141,053
shares, and the holders of the remaining consideration shares for the share reform have been unable to get in touch
for many times and for many years, there is great uncertainty about the time when all the shares will be recovered.
However, the company still actively promotes the recovery of the shares advanced by Meiling Group, and handles
the relevant procedures for free transfer as soon as possible after all the consideration shares for the share reform
are recovered. Prior to this, the company's restricted shares held by Meiling Group would not enjoy any rights as
shareholders during the holding period, including voting rights, dividend rights, etc.
(ii) The voting system did not comply with laws and regulations and the rectifications
1. According to Article 90 of the Securities Law of the People's Republic of China (2019 Amendment), "the board
of directors, independent directors, shareholders holding more than 1% of voting shares of a listed company or the
investor protection institutions established in accordance with laws, administrative regulations or the provisions of
securities regulatory authority of the State Council may act as solicitors”, and the company should complete the
scope of in accordance with the aforementioned regulations.
2. On December 6 and December 23, 2021, the company held the thirteenth session of the tenth board of directors
and the fourth extraordinary general meeting of shareholders in 2021, it was agreed that the company would
complete the solicitation subject for voting rights in the Articles of Association and the Rules of Procedure for the
General Meeting of Shareholders (Announcement No. 2021-091, No. 2021-093, No. 2021-109), and the industrial
and commercial registration of changes has been completed.
(iii) The controlling shareholder, the actual controller and the listed company shared the trademark and the
91
CHANGHONG MEILING CO.,LTD. Annual Report 2021
rectifications
1. The company and the controlling shareholder shared trademark. Regarding the shared trademark, only the
controlling shareholder authorized its "Changhong" trademark to Changhong Meiling for free use, and there was
no such situation that Changhong Meiling authorized the "Meiling" trademark to be used by the controlling
shareholder.
2. In view of the fact that Changhong Meiling and the controlling shareholder used the controlling shareholder’s
"Changhong" trademark in different product businesses, which neither caused competition or conflict with the
business of both parties, nor affected the independence of Changhong Meiling as a listed company. In future, the
company will legally and compliantly use trademarks in strict accordance with relevant laws and regulations.
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CHANGHONG MEILING CO.,LTD. Annual Report 2021
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CHANGHONG MEILING CO.,LTD. Annual Report 2021
Section V. Environmental and Social Responsibility
I. Major environmental
The listed Company and its subsidiary whether belongs to the key sewage units released from environmental protection department
√ Yes □ N
number Discharg
Major pollutants and Total
Name of Way of of concentration of e beyond
name of typical Distribution of discharge outlets Pollutants discharge standards enacted discharge Total discharge volume certified
company or discharge discharg discharge the
pollutants volume
subsidiary e outlets standards
Two outlets at J05 workshop "Sichuan Province Fixed Pollution Source Air
Sichuan Changhong
and one outlet at J07 workshop, Volatile Organic Compound Emission Standard
VOC (volatile Organized Air-conditioner Co., Ltd. has Not
3 No 128, Sanjiang Road, ≤18.1mg/m3 DB51/2377-2017" Table 3 standard 3,540.57kg completed the pollutant exceeded
organic compounds) emissions
Economic Development Zone, requirements, that is, volatile organic discharge registration on the
Mianyang City compounds <60mg/m3.
national pollutant discharge
Sichuan Two outlets at J05 workshop (it permit management information
"Comprehensive Emission Standard of Air
Changhong belongs to the same output as platform and obtained the
Air-conditi Organized Pollutants GB16297-1996" Table 2 secondary Not
oner Co., Nitrogen oxides emissions
2 J05VOC), No 128, Sanjiang ≤26mg/m3
standard requirements, that is, the
1,881.23kg registration receipt in
exceeded
Ltd.
注
Road, Economic Development accordance with the "Pollution
concentration of nitrogen oxides <240 mg/m3
Zone, Mianyang City Permit Management Measures
(Trial)", the "Fixed Pollution
Two outlets at J05 workshop (it
Organized "Comprehensive Emission Standard of Air Source Pollution Permit Not
belongs to the same output as
Sulfur dioxide 2 ＜3mg/m3 Pollutants GB16297-1996" Table 2 874.98kg Classification Management exceeded
emissions J05VOC), No 128, Sanjiang requirements, that is, the SO2<120 mg/m3
Road, Economic Development Directory (2019 Edition)", etc.,
94
CHANGHONG MEILING CO.,LTD. Annual Report 2021
Zone, Mianyang City there is no requirement for the
company's total emissions in the
Two outlets at J05 workshop "Comprehensive Emission Standard of Air
pollution discharge registration
and one outlet at J07 workshop, Pollutants GB16297-1996" Table 2 secondary
Organized Not
Particulate matter 4 No 128, Sanjiang Road, ≤1.7mg/m3 standard requirements, that is, the 933.23kg
emissions exceeded
Economic Development Zone, concentration of particulate matter <120
Mianyang City mg/m3
Note: In 2021, Bureau of Ecology and Environment of Mianyang issued the "List of Key Sewage Units in Mianyang for year of 2021", and included Changhong Air-conditioner in the list of key
soil environment pollution supervision
95
CHANGHONG MEILING CO.,LTD. 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
Company and its subsidiaries have determined classified warning based on the different extent and severity of
96
CHANGHONG MEILING CO.,LTD. Annual Report 2021
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 for environmental issues during the reporting period
The Company and its subsidiaries strictly abide by the relevant national and regional environmental protection
laws and regulations, established and improved the internal environmental protection management system by
relying on the ISO14001 system, updated the adaptable laws and regulations and relevant industry requirements in
a timely manner, and actively performed corporate social responsibilities, which laid a solid foundation for the
company's compliance operations. During the reporting period, the Company and its subsidiaries were not subject
to administrative penalties due to environmental issues.
6. Other environment information that should be disclosed
According to the Environmental Information Disclosure Measures of Enterprises and Institutions, in line with the
principle of mandatory disclosure and voluntary disclosure combined, the Company and its subsidiaries have
realized the disclosure of information relating to environmental impact assessment, project acceptance, pollutants
production and discharge, solid waste management, important environmental factors, environmental objectives
and performance of construction projects.
7.Measures taken to reduce carbon emissions and their effectiveness during the reporting period
□ Applicable √ Not applicable
Combining the characteristics and special requirements of carbon emissions, the company strengthens the energy
management of each production unit, improves the internal energy management and energy efficiency index
assessment and energy consumption evaluation system, continues to carry out energy measurement and evaluation,
follows the principles of system management, and establishes a complete and effective management system.
During the reporting period, the company vigorously promoted and applied the industry's advanced energy-saving
equipment and technologies, and carried out energy-saving technical transformation; carried out energy-saving
transformation for high-consumption and low-efficiency air compressors, upgrading and transformation for air
compressor joint control systems, energy-saving transformation for steam pipelines, research and application for
infrared heating technology, application research for air energy units, application research for air compressor
waste heat recovery and utilization, and replacement of high-efficiency and energy-saving heating tiles and other
energy-saving renovation measures, improved automation and intelligence, and combined energy management
97
CHANGHONG MEILING CO.,LTD. Annual Report 2021
with informatization construction, improved the production and manufacturing system through internet technology,
realized lean production management, improved production efficiency, and reduced energy waste and CO2
emissions.
8. 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.
II. Social responsibility
The company adheres to the core values of "dedication, responsibility, co-creation and sharing", and achieves the
purpose of "staff satisfaction, customer satisfaction, and shareholder satisfaction" through standardized operation
and scientific management. While achieving benign development, the company has also actively fulfilled its
social responsibilities through various forms and channels.
1. Protection of the rights and interests of shareholders and creditors
The company strictly follows the provisions and requirements formulated by the Articles of Association and the
Rules of Procedure for the General Meeting of Shareholders, regulates the convening, holding and voting
procedures of the general meeting of shareholders, equally treats all shareholders, especially small and medium
shareholders equally, and ensures that all shareholders enjoy equal status and fully exercise their own rights.
Under the premise of strictly implementing the Administrative Measures for Information Disclosure of Listed
Companies, the company actively communicates and exchanges information with investors on the company's
operations and management, financial status, etc. through annual performance briefings, investor telephone
hotline, e-mails, and the investor relations interactive platform of the Shenzhen Stock Exchange, and discloses
information to all investors in a truthful, accurate, complete, concise and clear, and easy-to-understand manner;
the company attaches great importance to the shareholder return mechanism. During the reporting period, the
company combined its own operating conditions and business models, and formulated the "Shareholder Return
Plan for the Next Three Years (2021-2023) of Changhong Meiling Co., Ltd.". In addition, during the reporting
period, in order to effectively protect the rights and interests of all shareholders and enhance the investment
confidence of public investors in the company, the company's board meeting and shareholders' meeting reviewed
98
CHANGHONG MEILING CO.,LTD. Annual Report 2021
and approved the continued implementation of the B-share repurchase plan, which effectively improved
shareholder satisfaction.
2. Protection of the rights and interests of employees
In accordance with relevant laws, regulations and policies, and in light of its own actual situation, the company
has established a relatively complete employment management system, including labor contract system, salary
and performance appraisal system, welfare management system, training management system, employee vacation
management system, etc.. The company pays attention to the vital interests of employees, maximizes the
protection of the legitimate rights and interests of employees and retirees, and strives to form a benefit sharing
mechanism for both company and employees, and establishes a harmonious labor relationship. At the same time,
the company shapes corporate culture and improves employee satisfaction by providing various vacations,
allowances, condolences, and organizing colorful leisure activities, sports and cultural festivals, carnivals, etc.
3. Protection of the rights and interests of suppliers, customers and consumers
The company has established a relatively complete procurement management system, optimized and revised
system documents in a timely manner, unified information system tools, strictly controlled every link of the
procurement business, cultivated core and strategic suppliers, and established a high-end supply chain cultivation
plan for component suppliers of high-end products, so as to form a synergy, cooperation and win-win situation
between the company and its suppliers.
The company attaches great importance to product quality and customer needs, and has a relatively advanced and
complete R&D and quality assurance system which has passed ISO9001, ISO14001, ISO45001 management
system certifications, so its products are guaranteed by high quality and reliable performance. At the same time,
for different types of customers, the company implements classification evaluation and system management,
timely answers or feed backs and deals with the questions raised by customers, continuously improves quality
services, and enhances brand image.
4. Social welfare
Over the years, the company has been actively participating in social welfare undertakings and various social
welfare activities. The company strictly implements the internal environmental operation control procedures and a
series management systems related to environment, safety and product quality, such as Energy Management
Regulations, Safety Production Responsibility System, Safety Training Management System, and "Process
Quality Control Points" Management Measures for Refrigerator and Freezer Products, ensures that the company's
production and service activities comply with relevant national legal requirements; and actively carries out actions
such as helping employees with serious illnesses and advocating voluntary donations by employees. In addition,
after the outbreak of the COVID-19 pandemic, the company has actively participated in various social welfare
99
CHANGHONG MEILING CO.,LTD. Annual Report 2021
activities and assumed social responsibilities , donated multiple batches of medical supplies to contribute to the
anti-pandemic work.
III. Consolidate and expand the achievements of poverty alleviation and rural revitalization
The company actively undertakes corporate social responsibility, and strives to contribute to local poverty
alleviation and rural revitalization while achieving its own sound operation and development. At the beginning of
2022, the company has successively carried out the "Rural Revitalization, Meiling Goes First - Base Agricultural
Products Fair", and the love assistance activities for Tongxin Primary School in Tiantangzhai Town, Jinzhai
County, positively responding to Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era,
and assuming the social responsibility of enterprises.
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CHANGHONG MEILING CO.,LTD. Annual Report 2021
Section VI. Important Events
I. Implementation of commitment
(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
Commitment Implement
Commitment Type/content Date Term
party ation
1. The acquirer shall not engage in refrigerator business or activity which Strictly
competes or will compete with business of Meiling Electrical Appliances, or Valid for long term implemente
that which has interest conflict with Meiling Electrical Appliances. d
About committed
2. The acquirer promises to apply shareholders’ right on a legal and reasonable Strictly
Sichuan and promised in
Commitments manner and shall not take any action to limit or affect the normal operation of Valid for long term implemente
Changhong order to prevent
made in Meiling Electric. d
Electric Co., horizontal
acquisition 3. For any opportunity to engage in competing business, the acquirer will 2007-6-12
Ltd.(hereinafter, competition in the
report or equity advise Meiling Electric in written for engaging such business or not. If Meiling
the “Sichuan Acquisition
change report Electrical Appliances gives no clear written reply as to whether engaging the Strictly
Changhong”) Report of Hefei
competing business or not within 20 days after receipt of the aforesaid letter, it Valid for long term implemente
Meiling Co., Ltd.
shall be deemed that it will not engage in such business. The acquirer will only d
engage in non-competing business provided that Meiling Electric confirms not
to or is deemed to not engage in such non-competing business.
101
CHANGHONG MEILING CO.,LTD. Annual Report 2021
1. It will not engage in such business or activity that competes with or has
interest conflict with that of Meiling Electric except for the action taken for
sake of Meiling Electric as required by Meiling Electrical Appliances.
Commitment 2. The Company promises to apply shareholders’ right on a legal and
regarding to reasonable manner and shall not take any action to limit or affect the normal
Strictly
reducing and operation of Meiling Electric
2010-6-24 Valid for long term implemente
preventing 3. In case that Meiling Electric expects, on the basis of its existing business, to
d
competition with expand its operation scope into the business which the Company has already
Meiling Electric operated, the Company agrees to grant priority acquisition right to Meiling
Electric regarding such business if the same conditions are met, provided that
the Company is still the controlling shareholder or actual controller of Meiling
Electric
1. Measures will be adopted to prevent continued related transaction with
Sichuan
Commitment Meiling Electric: as to the related transaction that can not be prevented, it will
Changhong
made during the Commitment sign related transaction agreement with Meiling Electric under the market
non-public offer regarding to principles of “equally paid and mutual benefit”, and fairly determined the
of 2010 reducing and transaction price according to the market prevailing standards. Strictly
standardizing 2. Perform the necessary obligations to make related directors and related 2010-6-24 Valid for long term implemente
related transaction shareholder abstain from voting according to relevant regulation, and observe d
with Meiling legal procedure for approving related transaction and information disclosure
Electric obligations.
3. Promise not to hurt legal interests of Meiling Electric and other shareholders
through related transaction.
Strictly
Commit to authorized Changhong Air-conditioner and Zhongshan Changhong use “Changhong”
2010-11-6 Valid for long term implemente
trademark and relevant patents for free.
d
1. Commit to disclose periodic reports on a truthful, accurate, complete, fair and prompt manner, to Strictly
The Company disclose all the information that have important influences over investors, to accept supervision 2011-1-7 Valid for long term implemente
under the CSRC and Shenzhen Stock Exchange. d
102
CHANGHONG MEILING CO.,LTD. Annual Report 2021
2. Commit to make public clarification in respect of such information that is released from any
public media and may result in misleading influences on stock price once the Company is aware of
such information.
3. The directors, supervisors, senior management and core technicians of the Company will accept
opinions and criticism from the social public, and they will not trade the Company’s securities,
directly or indirectly, with any inside information and other illegal methods. The Company
promises that the documents submitted to Shenzhen Stock Exchange exist no false statement or
material omission, and no relevant information will be disclosed during the application for listing
without prior content from Shenzhen Stock Exchange.
1. Since the property transfer didn’t involve the buildings and land currently used by Changhong Strictly
Air-conditioner, Sichuan Changhong commits, upon the completion of equity transfer, to continue Valid for long term implemente
to lease such assets to Changhong Air-conditioner at market price. d
Commitment
2. After completion of this property transfer, Sichuan Changhong commits to manage to prevent
made in transfer
Sichuan new related transaction with Meiling Electric. For those which can not be prevented, Sichuan
of air 2009-12-10
Changhong Changhong commits to determine the transaction price based on market accepted methods, so as to Strictly
conditioning
ensure fairness of related transaction and protection of the interest of Meiling Electric Valid for long term implemente
assets property
3. Sichuan Changhong commits that it will not engage in air conditioning and refrigerator business d
or activity which competes or will compete with business of Meiling Electric, or that which has
interest conflict with Meiling Electric
Sichuan 1. Based on market conditions and as allowed by laws and rules, multiple measures were adopted
Changhong adequately to increase shareholding of Meiling Electric, so as to demonstrate its firm confidence on
Commitments Electric Co., the PRC economy and Meiling Electric with its actual actions, maintain sound development of
Strictly
of not to Ltd.and persons capital market and promote recovery of healthy market
2015-7-9 Valid for long term implemente
reducing the acting in concert
d
shares CHANGHONG 2. Continued to support operation and development of listed company as always and promoted the
(HK) TRADING achievement of Meiling Electric. It is committed to bringing steady and real return to investors.
LIMITED
Commitment Directors and Commitment on 1. I hereby undertake not to deliver interests to other entities or individuals Till the completion
Implementi
made during the senior executives compensation of without consideration or at unfair conditions, nor to prejudice the Company’s 2016-2-23 of projects invested
ng
non-public offer of the Company immediate interests by other means. with the proceeds
103
CHANGHONG MEILING CO.,LTD. Annual Report 2021
in 2016 dilution of return from this
2. I hereby undertake to restrain my role related consumption behaviors.
arising from non-public issuance
non-public 3. I hereby undertake not to conduct any investment and consumption which is of shares
issuance of shares not related to performance of duties with utilization of any company assets.
4. I hereby undertake that the remuneration system determined by the board of
directors or the remuneration and examination committee be linked to
implementation of the compensation of return measures.
5. In case that the Company adopts share based incentive plan in future, I
hereby undertake that the exercise conditions of the incentive plan to be
announced by the Company be linked to implementation of the compensation
of return measures.
6. For the period from the date of this commitment to the date of completion of
this non-public issuance of shares, if the CSRC makes other new regulatory
requirements on compensation of return measures and the commitment thereof,
and in case that the above commitments cannot satisfy these new requirements
from the CSRC, I hereby undertake to issue supplementary commitment in
compliance with the latest CSRC requirements.
7. As one of the principals responsible for compensation of return measures, I,
in case of break of the above commitments or refuse to perform the above
commitments, agree to receive relevant punishment or to adopt relevant
administration measures according to the systems, rules and regulations of the
CSRC and Shenzhen Stock Exchange.
1. Promise to truly, accurately, completely, fairly and timely publish periodic reports, disclose all
information that has significant impacts on the investors, and accept the supervision and
management of China Securities Regulatory Commission and the Shenzhen Stock Exchange.
Strictly
2. Make commitments that the Company will publicly clarify in time after knowing any
The Company 2016-10-12 Valid for long term implemente
information on any public communications media that may cause misleading influence on the
d
stock price
3. The Company’s directors, supervisors and senior executives will listen carefully to the opinions
and criticisms of the public and never use any acquired inside information and other improper
104
CHANGHONG MEILING CO.,LTD. Annual Report 2021
means to directly or indirectly engage in the trading activities of the Company's stock.
Perform the commitment promptly or not √ Yes □ No
If the commitment is overdue and has not
been fulfilled, the specific reasons for
Not applicable
incomplete performance and the work plan
for next step shall be explained in detail
(ii) Concerning assets or project of the Company, which has profit forecast, and reporting period still in forecasting period, explain reasons of reaching the
original profit forecast
□ Applicable √ Not applicable
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.
Disclosure date for specific approval opinion on fund occupation from CPA: 31 March 2022
Disclosure index for specific approval opinion on fund occupation from CPA: Juchao website: Juchao Website (www.cninfo.com.cn)-- Specific Explanation on Non-operational fund occupation
and its related capital transactions for year of 2021 of Changhong Meiling Co., Ltd.
III. External guarantee out of the regulations
□ Applicable √ Not applicable
No external guarantee out of the regulations occurred in the period.
IV. Statement on the latest “modified audit report” by BOD
□ Applicable √ Not applicable
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CHANGHONG MEILING CO.,LTD. Annual Report 2021
V. Explanation from Board of Directors, Supervisory Committee and Independent Directors (if applicable)
for “Qualified Opinion” that issued by CPA
□ Applicable √ Not applicable
VI. Explanation of the changes in accounting polices, accounting estimates or correction of significant
accounting errors compared with the financial report of the previous year
√ Applicable □ Not applicable
Found more details in 38. Change of major accounting policy and estimation under IV. Major accounting policy and estimation
carried in the Section XII. Financial Report
VII. Compare with last year’s financial report; explain changes in consolidation statement’s scope
√ Applicable □ Not applicable
In the reporting period, the consolidated financial statements of the Company cover 27 subsidiaries, including Sichuan Changhong
Air-conditioner Co., Ltd, Zhongshan Changhong Electric Co., Ltd. And Zhongke Meiling Cryogenic Technology Co., Ltd. etc.
Compared with the previous year, during the reporting period one enterprise is included in the consolidate scope, that is Anhui
Ling'an Medical Equipment Co., Ltd. The subsidiaries Tai yuan Meiling Electrical Marketing Co., Ltd., Tianjin Meiling Electrical
Marketing Co., Ltd., and Guangzhou Meiling Electrical Marketing Co., Ltd. were decreased due to the merger.
More details can be seen in the report “VII. Changes in the scope of the merger” and “VIII. Equity in other entities” of “Section X
Financial Report”
VIII. Appointment and non-reappointment (dismissal) of CPA
Name of domestic accounting firm Shine Wing Certified Public Accountants (LLP)
Remuneration for domestic accounting firm (In 10 thousand yuan) 131
Continuous life of auditing service for domestic accounting firm 13-year
Name of domestic CPA Li Xifu, Wang Xiaodong
Continuous life of auditing service for domestic CPA Li Xifu (5 years), Wang Xiaodong (2 year)
Name of foreign accounting firm (if applicable) N/A
Remuneration for foreign accounting firm (10 thousand yuan) (if
N/A
applicable)
Continuous life of auditing service for foreign accounting firm (if
N/A
applicable)
Name of foreign CPA (if applicable) N/A
Continuous life of auditing service for foreign CPA (if applicable) -
(i) Accounting firm appointed
(ii) Re-appointed accounting firms in this period
□Yes √ No
106
CHANGHONG MEILING CO.,LTD. Annual Report 2021
(iii) Appointment of internal control auditing accounting firm, financial consultant or sponsor
√ Applicable □ Not applicable
In reporting period, Shine Wing Certified Public Accountants (LLP) was appointed as audit institute of internal
control for the Company, auditing charge for internal control amounting as 250,000 yuan.
IX. Particular about delisting after annual report disclosed
□ Applicable √ Not applicable
X. Bankruptcy reorganization
□ Applicable √ Not applicable
XI. Material lawsuits and arbitration of the Company
(i) Major Litigation and Arbitration Matters
□ Applicable √ Not applicable
During the reporting period, the Company had no major litigation and arbitration matters.
(ii) Other litigation matters
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.
XII. Penalty and rectification
√ Applicable □ Not applicable
107
CHANGHONG MEILING CO.,LTD. Annual Report 2021
Investig
ation Disclosure
Name Type Causes Conclusions (if any) Disclosure index
penalty date
type
The YC-395EL (1) type equipment produced Zhongke Meiling
Investig
on 24 Oct. 2019 and sold on 13 Nov. 2019 by was ordered to
ated by Found more on
ZhongkeMeiling Zhongke Meiling did not file changes with the immediately correct
compet (Notice No.:
Cryogenic Other original registration department; the the violations and 2021-7-16
Technology Co., ent 2021-056) released
Ltd. YC-395EL (2) type equipment did not apply was given a
authorit on Juchao Website
for registration changes with the original forfeiture of 456,500
ies
registration department yuan in total
Correction description:
√ Applicable □ Not applicable
After accepting the on-site inspection by the Anhui Medical Products Administration, Zhongke Meiling has fully
realized the problem of not timely filing and registering changes in accordance with the relevant provisions of the
Regulations for the Supervision and Administration of Medical Devices, and rectified the corresponding problems
as soon as possible. Zhongke Meiling recalled the products involved in a timely manner in accordance with the
Medical Device Recall Management Measures, and immediately sealed samples of the recalled products and sent
them to a third-party authority for performance and safety testing. The inspection showed that 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 its subsidiaries will profoundly summarize the lessons of this administrative
penalty, strictly abide by relevant laws and regulations, further improve the standardized operation level, and
prevent such incidents from happening again.
XIII. Integrity of the company and its controlling shareholders and actual controllers
□Applicable √ Not applicable
During the reporting period, the Company and the controlling shareholders and the actual controllers have had
good reputation, and there is no large amount due unliquidated debt sentenced by the court.
XIV. Major related party transaction
(i) Related party transaction with routine operation concerned
√ Applicable □ Not applicable
108
CHANGHONG MEILING CO.,LTD. Annual Report 2021
Whethe
Proport r over Availa
Related Clearing
Related ion in Trading limit the ble
Type of Content of Pricing transaction form for
Seri Relationshi transaction similar approved (in approve simila
Related party related related principl price (in 10 related Date of disclosure Index of disclosure
al p amount (in 10 transact 10 thousand d r
transaction transaction e thousand transactio
thousand Yuan) ions Yuan) limited marke
Yuan) n
(%) or not t price
(Y/N)
R-three-terminal
voltage regulator, Juchao
Sichuan Controlling
integrated circuits, Website(www.cninfo.com.
Spot 2020-12-12;
Changhong shareholder Commodity cn) Notice No.: 2020-097,
R-insulated gate Marketin exchange, 2020-12-30; 2021-7-13;
1 50,571.94 50,571.94 3.60% 60,000.00 N - 2020-099, 2020-107,
Electric Co., and ultimate purchased g price Bank 2021-7-29 and
bipolar transistors, 2021-050, 2021-053,
acceptance 2021-12-21
Ltd. controller 2021-058, 2021-104 and
steel plates, 2021-106
plastic parts etc.
Other
enterprise Juchao
control Website(www.cninfo.com.
Changhong 2020-12-12;
under the Compressor, Door Marketin cn) Notice No.: 2020-097,
Huayi Commodity Bank 2020-12-30; 2021-7-13;
2 same 41,837.98 41,837.98 2.98% 63,150.00 N - 2020-099, 2020-107,
Compressor purchased seal g price acceptance 2021-7-29 and
controlling 2021-050, 2021-053,
Co., Ltd. 2021-12-21
shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
Sichuan control Website(www.cninfo.com.
Components, Spot 2020-12-12;
Changhong under the cn) Notice No.: 2020-097,
Commodity plastic parts and Marketin exchange, 2020-12-30; 2021-7-13;
3 Mold Plastic same 72,213.77 72,217.32 5.14% 120,000.00 N - 2020-099, 2020-107,
purchased lining accessories g price Bank 2021-7-29 and
Tech. Co., controlling 2021-050, 2021-053,
etc. acceptance 2021-12-21
Ltd. shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
Sichuan Other Base plate Spot 2020-12-12; Juchao
Commodity Marketin
4 Changhong enterprise assembly, black 36,519.86 36,519.86 2.60% 60,000.00 N exchange, - 2020-12-30; 2021-7-13; Website(www.cninfo.com.
purchased g price
Jijia Fine Co., control plate, bracket etc. Bank 2021-7-29 and cn) Notice No.: 2020-097,
109
CHANGHONG MEILING CO.,LTD. Annual Report 2021
Ltd. under the acceptance 2021-12-21 2020-099, 2020-107,
same 2021-050, 2021-053,
controlling 2021-058, 2021-104 and
shareholder 2021-106
and ultimate
controller
Other
enterprise Juchao
Sichuan control Website(www.cninfo.com.
Spot 2020-12-12;
Changhong under the Packing boxes, cn) Notice No.: 2020-097,
Commodity Marketin exchange, 2020-12-30; 2021-7-13;
5 Package same foam, fixed 10,505.94 10,505.94 0.75% 18,000.00 N - 2020-099, 2020-107,
purchased g price Bank 2021-7-29 and
Printing Co., controlling support block etc. 2021-050, 2021-053,
acceptance 2021-12-21
Ltd. shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
Sichuan
control Website(www.cninfo.com.
Changhong Printed board 2020-12-12;
under the cn) Notice No.: 2020-097,
Precision Commodity machine insertion Marketin Bank 2020-12-30; 2021-7-13;
6 same 1,689.38 1,689.38 0.12% 5,000.00 N - 2020-099, 2020-107,
Electronics purchased machine paste g price acceptance 2021-7-29 and
controlling 2021-050, 2021-053,
Tech. Co., assembly 2021-12-21
shareholder 2021-058, 2021-104 and
Ltd.
and ultimate 2021-106
controller
Other
enterprise Juchao
Sichuan control Website(www.cninfo.com.
2020-12-12;
Changhong under the cn) Notice No.: 2020-097,
Commodity Marketin Cash 2020-12-30; 2021-7-13;
7 International same foodstuff 2.00 2.00 0.00% 8,000.00 N - 2020-099, 2020-107,
purchased g price settlement 2021-7-29 and
Hotel Co., controlling 2021-050, 2021-053,
2021-12-21
Ltd. shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
control Website(www.cninfo.com.
2020-12-12;
081 Electronic under the cn) Notice No.: 2020-097,
Commodity Power Marketin Bank 2020-12-30; 2021-7-13;
8 Group Co., same 4.95 4.95 0.00% 13,000.00 N - 2020-099, 2020-107,
purchased transformers g price acceptance 2021-7-29 and
Ltd. controlling 2021-050, 2021-053,
2021-12-21
shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
9 Guangdong Other Commodity Foam and carton Marketin 459.10 459.10 0.03% 13,000.00 N Spot - 2020-12-12; Juchao
110
CHANGHONG MEILING CO.,LTD. Annual Report 2021
Changhong enterprise purchased g price exchange, 2020-12-30; 2021-7-13; Website(www.cninfo.com.
Electronics control Bank 2021-7-29 and cn) Notice No.: 2020-097,
Co., Ltd. under the acceptance 2021-12-21 2020-099, 2020-107,
same 2021-050, 2021-053,
controlling 2021-058, 2021-104 and
shareholder 2021-106
and ultimate
controller
Other
enterprise Juchao
Sichuan
control Website(www.cninfo.com.
Changhong 2020-12-12;
under the cn) Notice No.: 2020-097,
Intelligent Commodity Marketin Cash 2020-12-30; 2021-7-13;
10 same Circuit boards 2.86 2.86 0.00% 8,000.00 N - 2020-099, 2020-107,
Manufacturing purchased g price settlement 2021-7-29 and
controlling 2021-050, 2021-053,
Technology 2021-12-21
shareholder 2021-058, 2021-104 and
Co., Ltd.
and ultimate 2021-106
controller
Other
enterprise Juchao
control Website(www.cninfo.com.
Sichuan 2020-12-12;
under the cn) Notice No.: 2020-097,
Hongwei Commodity Marketin Cash 2020-12-30; 2021-7-13;
11 same RTU collectors 0.32 0.32 0.00% 13,000.00 N - 2020-099, 2020-107,
Technology purchased g price settlement 2021-7-29 and
controlling 2021-050, 2021-053,
Co., Ltd. 2021-12-21
shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
control Website(www.cninfo.com.
Hefei 2020-12-12;
under the Inverter integrated cn) Notice No.: 2020-097,
Changhong Commodity Marketin Bank 2020-12-30; 2021-7-13;
12 same board, control 942.42 942.42 0.07% 13,000.00 N - 2020-099, 2020-107,
Industrial Co., purchased g price acceptance 2021-7-29 and
controlling board 2021-050, 2021-053,
Ltd. 2021-12-21
shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
Other Juchao
Sichuan enterprise Website(www.cninfo.com.
control 2020-12-12;
Changhong cn) Notice No.: 2020-097,
under the Commodity Marketin Cash 2020-12-30; 2021-7-13;
13 New Energy batteries 2.70 2.70 0.00% 8,000.00 N - 2020-099, 2020-107,
same purchased g price settlement 2021-7-29 and
Technology 2021-050, 2021-053,
controlling 2021-12-21
Co., Ltd. 2021-058, 2021-104 and
shareholder 2021-106
and ultimate
111
CHANGHONG MEILING CO.,LTD. Annual Report 2021
controller
Other
enterprise Juchao
Sichuan control Website(www.cninfo.com.
2020-12-12;
Zhiyijia under the cn) Notice No.: 2020-097,
Commodity Air conditioner, Marketin Cash 2020-12-30; 2021-7-13;
14 Network same 1,218.16 1,218.16 0.09% 13,000.00 N - 2020-099, 2020-107,
purchased LCD TV g price settlement 2021-7-29 and
Technology controlling 2021-050, 2021-053,
2021-12-21
Co., Ltd. shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
Changhong control Website(www.cninfo.com.
2020-12-12;
International under the cn) Notice No.: 2020-097,
Commodity Marketin Cash 2020-12-30; 2021-7-13;
15 Holdings same Television 1,017.63 1,017.63 0.07% 10,000.00 N - 2020-099, 2020-107,
purchased g price settlement 2021-7-29 and
(Hong Kong) controlling 2021-050, 2021-053,
2021-12-21
Co., Ltd. shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
Sichuan control Website(www.cninfo.com.
Speech Spot 2020-12-12;
Changhong under the cn) Notice No.: 2020-097,
Commodity components for Marketin exchange, 2020-12-30; 2021-7-13;
16 Electronic same 2,376.25 2,376.25 0.17% 6,000.00 N - 2020-099, 2020-107,
purchased R&D, electronic g price Bank 2021-7-29 and
Products Co., controlling 2021-050, 2021-053,
components acceptance 2021-12-21
Ltd. shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
control Website(www.cninfo.com.
Sichuan 2020-12-12;
under the cn) Notice No.: 2020-097,
Jiahong Commodity Marketin Cash 2020-12-30; 2021-7-13;
17 same foodstuff 0.60 0.60 0.00% 8,000.00 N - 2020-099, 2020-107,
Industrial Co., purchased g price settlement 2021-7-29 and
controlling 2021-050, 2021-053,
Ltd. 2021-12-21
shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
Other Juchao
Sichuan Ailian enterprise Internet access Spot 2020-12-12; Website(www.cninfo.com.
Science & control Commodity modules, Marketin exchange, 2020-12-30; 2021-7-13; cn) Notice No.: 2020-097,
18 2,519.71 2,519.71 0.18% 6,000.00 N -
Technology under the purchased electronic g price Bank 2021-7-29 and 2020-099, 2020-107,
Co., Ltd. same components etc. acceptance 2021-12-21 2021-050, 2021-053,
controlling 2021-058, 2021-104 and
112
CHANGHONG MEILING CO.,LTD. Annual Report 2021
shareholder 2021-106
and ultimate
controller
Other
enterprise Juchao
Sichuan control Website(www.cninfo.com.
Spot 2020-12-12;
Aichuang under the cn) Notice No.: 2020-097,
Commodity Inverter integrated Marketin exchange, 2020-12-30; 2021-7-13;
19 Science & same 10,843.83 10,843.83 0.77% 15,000.00 N - 2020-099, 2020-107,
purchased board, R-IC etc. g price Bank 2021-7-29 and
Technology controlling 2021-050, 2021-053,
acceptance 2021-12-21
Co., Ltd. shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
Hunan control Website(www.cninfo.com.
Spot 2020-12-12;
Grand-Pro under the cn) Notice No.: 2020-097,
Commodity Floor mopping Marketin exchange, 2020-12-30; 2021-7-13;
20 Intelligent same 152.35 152.35 0.01% 1,500.00 N - 2020-099, 2020-107,
purchased robot g price Bank 2021-7-29 and
Tech. controlling 2021-050, 2021-053,
acceptance 2021-12-21
Company shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
Sichuan control Website(www.cninfo.com.
2020-12-12;
Service Exp. under the cn) Notice No.: 2020-097,
Commodity Air conditioner Marketin Cash 2020-12-30; 2021-7-13;
21 Appliance same 5.00 5.00 0.00% 13,000.00 N - 2020-099, 2020-107,
purchased spare parts g price settlement 2021-7-29 and
Service Chain controlling 2021-050, 2021-053,
2021-12-21
Co., Ltd. shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
Juchao
Sichuan Shuttle
Website(www.cninfo.com.
Changhong Controlling transportation fee, 2020-12-12;
cn) Notice No.: 2020-097,
Electronics shareholder Accept labor employee medical Marketin Cash 2020-12-30; 2021-7-13;
22 168.13 168.13 0.12% 8,000.00 N - 2020-099, 2020-107,
Holding and ultimate service examination fees g price settlement 2021-7-29 and
2021-050, 2021-053,
Group Co., controller and training fees 2021-12-21
2021-058, 2021-104 and
Ltd. etc.
2021-106
Training fees, Juchao
Sichuan Controlling 2020-12-12; Website(www.cninfo.com.
technical service
Changhong shareholder Accept labor Marketin Cash 2020-12-30; 2021-7-13; cn) Notice No.: 2020-097,
23 fees, inspection 574.57 574.57 0.40% 5,600.00 N -
Electric Co., and ultimate service g price settlement 2021-7-29 and 2020-099, 2020-107,
and certification
Ltd. controller 2021-12-21 2021-050, 2021-053,
fees etc.
2021-058, 2021-104 and
113
CHANGHONG MEILING CO.,LTD. Annual Report 2021
2021-106
Other
enterprise Juchao
Transportation
Sichuan control Website(www.cninfo.com.
costs, storage and 2020-12-12;
Changhong under the cn) Notice No.: 2020-097,
Accept labor handling charges, Marketin Cash 2020-12-30; 2021-7-13;
24 Minsheng same 58,526.38 58,526.38 41.06% 60,000.00 N - 2020-099, 2020-107,
service freight and g price settlement 2021-7-29 and
Logistics Co., controlling 2021-050, 2021-053,
miscellaneous 2021-12-21
Ltd. shareholder 2021-058, 2021-104 and
charges etc.
and ultimate 2021-106
controller
Other
enterprise Juchao
Sichuan control Website(www.cninfo.com.
2020-12-12;
Changhong under the cn) Notice No.: 2020-097,
Accept labor Marketin Cash 2020-12-30; 2021-7-13;
25 Mold Plastic same Mold changes fees 12.72 12.72 0.01% 5,600.00 N - 2020-099, 2020-107,
service g price settlement 2021-7-29 and
Tech. Co., controlling 2021-050, 2021-053,
2021-12-21
Ltd. shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
Sichuan control Website(www.cninfo.com.
Three packages, 2020-12-12;
Service Exp. under the cn) Notice No.: 2020-097,
Accept labor equipment Marketin Cash 2020-12-30; 2021-7-13;
26 Appliance same 25,071.81 25,071.81 17.59% 35,000.00 N - 2020-099, 2020-107,
service repair,miscellaneo g price settlement 2021-7-29 and
Service Chain controlling 2021-050, 2021-053,
us fees etc. 2021-12-21
Co., Ltd. shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
Other Software usage
enterprise Juchao
control fee, service Website(www.cninfo.com.
Sichuan 2020-12-12;
under the supporting fee and Marketin cn) Notice No.: 2020-097,
Hongxin Accept labor Cash 2020-12-30; 2021-7-13;
27 same 1,085.67 1,085.67 0.76% 5,600.00 N - 2020-099, 2020-107,
Software Co., service information g price settlement 2021-7-29 and
controlling 2021-050, 2021-053,
Ltd. 2021-12-21
shareholder service fee 2021-058, 2021-104 and
and ultimate 2021-106
controller
Other Labor insurance Juchao
Guangdong enterprise 2020-12-12; Website(www.cninfo.com.
fee, service
Changhong control Accept labor Marketin Cash 2020-12-30; 2021-7-13; cn) Notice No.: 2020-097,
28 support fee, 112.83 112.83 0.08% 5,600.00 N -
Electronics under the service g price settlement 2021-7-29 and 2020-099, 2020-107,
network service
Co., Ltd. same 2021-12-21 2021-050, 2021-053,
fee etc.
controlling 2021-058, 2021-104 and
114
CHANGHONG MEILING CO.,LTD. Annual Report 2021
shareholder 2021-106
and ultimate
controller
Other
enterprise Juchao
control Website(www.cninfo.com.
Sichuan 2020-12-12;
under the Meals, property cn) Notice No.: 2020-097,
Jiahong Accept labor Marketin Cash 2020-12-30; 2021-7-13;
29 same management fees 389.52 389.52 0.27% 8,000.00 N - 2020-099, 2020-107,
Industrial Co., service g price settlement 2021-7-29 and
controlling etc. 2021-050, 2021-053,
Ltd. 2021-12-21
shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
Sichuan control Website(www.cninfo.com.
2020-12-12;
Changhong under the cn) Notice No.: 2020-097,
Accept labor Meetings fee, Marketin Cash 2020-12-30; 2021-7-13;
30 International same 21.78 21.78 0.02% 8,000.00 N - 2020-099, 2020-107,
service accommodation g price settlement 2021-7-29 and
Hotel Co., controlling 2021-050, 2021-053,
2021-12-21
Ltd. shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
control Website(www.cninfo.com.
2020-12-12;
under the cn) Notice No.: 2020-097,
Orion.PDP.Co. Accept labor Three-packages Marketin Cash 2020-12-30; 2021-7-13;
31 same 12.53 12.53 0.01% 8,000.00 N - 2020-099, 2020-107,
,ltd service fee g price settlement 2021-7-29 and
controlling 2021-050, 2021-053,
2021-12-21
shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
Sichuan control Website(www.cninfo.com.
2020-12-12;
Changhong under the cn) Notice No.: 2020-097,
Accept labor Marketin Cash 2020-12-30; 2021-7-13;
32 International same Travel expenses 2.66 2.66 0.00% 8,000.00 N - 2020-099, 2020-107,
service g price settlement 2021-7-29 and
Travel Service controlling 2021-050, 2021-053,
2021-12-21
Co., Ltd. shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
Sichuan Other Dormitory facility 2020-12-12; Juchao
Changhong enterprise Accept labor and equipment Marketin Cash 2020-12-30; 2021-7-13; Website(www.cninfo.com.
33 70.72 70.72 0.05% 8,000.00 N -
Property control service service fees, g price settlement 2021-7-29 and cn) Notice No.: 2020-097,
Services Co., under the property 2021-12-21 2020-099, 2020-107,
115
CHANGHONG MEILING CO.,LTD. Annual Report 2021
Ltd. same management fees 2021-050, 2021-053,
controlling 2021-058, 2021-104 and
shareholder 2021-106
and ultimate
controller
Other
enterprise Juchao
control Website(www.cninfo.com.
Sichuan 2020-12-12;
under the cn) Notice No.: 2020-097,
Hongwei Accept labor Inspection & Marketin Cash 2020-12-30; 2021-7-13;
34 same 152.19 152.19 0.11% 5,600.00 N - 2020-099, 2020-107,
Technology service certification fees g price settlement 2021-7-29 and
controlling 2021-050, 2021-053,
Co., Ltd. 2021-12-21
shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
Sichuan control Website(www.cninfo.com.
Marketing support 2020-12-12;
Zhiyijia under the cn) Notice No.: 2020-097,
Accept labor fees, advertising Marketin Cash 2020-12-30; 2021-7-13;
35 Network same -46.57 -46.57 -0.03% 5,600.00 N - 2020-099, 2020-107,
service fees and operating g price settlement 2021-7-29 and
Technology controlling 2021-050, 2021-053,
expenses 2021-12-21
Co., Ltd. shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
Sichuan
control Information Website(www.cninfo.com.
Changhong 2020-12-12;
under the consulting fees, cn) Notice No.: 2020-097,
Intelligent Accept labor Marketin Cash 2020-12-30; 2021-7-13;
36 same labor dispatch fee 74.86 74.86 0.05% 8,000.00 N - 2020-099, 2020-107,
Manufacturing service g price settlement 2021-7-29 and
controlling and equipment 2021-050, 2021-053,
Technology 2021-12-21
shareholder repair fees 2021-058, 2021-104 and
Co., Ltd.
and ultimate 2021-106
controller
Other
enterprise Juchao
control Website(www.cninfo.com.
Sichuan 2020-12-12;
under the Equipment repair cn) Notice No.: 2020-097,
Changhong Accept labor Marketin Cash 2020-12-30; 2021-7-13;
37 same fees and labor 1.18 1.18 0.00% 5,600.00 N - 2020-099, 2020-107,
Jijia Fine Co., service g price settlement 2021-7-29 and
controlling dispatch fee 2021-050, 2021-053,
Ltd. 2021-12-21
shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
Sichuan Other Accept labor Environmental Marketin Cash 2020-12-12; Juchao
38 5.66 5.66 0.00% 8,000.00 N -
Changhong enterprise service fees g price settlement 2020-12-30; 2021-7-13; Website(www.cninfo.com.
116
CHANGHONG MEILING CO.,LTD. Annual Report 2021
Gerun control 2021-7-29 and cn) Notice No.: 2020-097,
Environmental under the 2021-12-21 2020-099, 2020-107,
Protection same 2021-050, 2021-053,
Tech. Co., Ltd. controlling 2021-058, 2021-104 and
shareholder 2021-106
and ultimate
controller
Other
enterprise Juchao
Sichuan control Website(www.cninfo.com.
2020-12-12;
Changhong under the cn) Notice No.: 2020-097,
Accept labor Marketin Cash 2020-12-30; 2021-7-13;
39 Electronic same Labor dispatch fee 12.70 12.70 0.01% 5,600.00 N - 2020-099, 2020-107,
service g price settlement 2021-7-29 and
Products Co., controlling 2021-050, 2021-053,
2021-12-21
Ltd. shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
Sichuan control Website(www.cninfo.com.
2020-12-12;
Aichuang under the Labor dispatch cn) Notice No.: 2020-097,
Accept labor Marketin Cash 2020-12-30; 2021-7-13;
40 Science & same fee, R&D test 13.14 13.14 0.01% 8,000.00 N - 2020-099, 2020-107,
service g price settlement 2021-7-29 and
Technology controlling fees 2021-050, 2021-053,
2021-12-21
Co., Ltd. shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
Guangyuan control Website(www.cninfo.com.
2020-12-12;
Changhong under the cn) Notice No.: 2020-097,
Accept labor Marketin Cash 2020-12-30; 2021-7-13;
41 Electronic same Labor dispatch fee 102.31 102.31 0.07% 5,600.00 N - 2020-099, 2020-107,
service g price settlement 2021-7-29 and
Technology controlling 2021-050, 2021-053,
2021-12-21
Co., Ltd. shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
Changhong control Website(www.cninfo.com.
2020-12-12;
International under the cn) Notice No.: 2020-097,
Accept labor Marketing Marketin Cash 2020-12-30; 2021-7-13;
42 Holdings same 598.87 598.87 0.42% 5,600.00 N - 2020-099, 2020-107,
service supports fees g price settlement 2021-7-29 and
(Hong Kong) controlling 2021-050, 2021-053,
2021-12-21
Co., Ltd. shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
117
CHANGHONG MEILING CO.,LTD. Annual Report 2021
Other
Technical
enterprise Juchao
development
control Website(www.cninfo.com.
Sichuan service fee, 2020-12-12;
under the cn) Notice No.: 2020-097,
Qiruik Accept labor instrument repair Marketin Cash 2020-12-30; 2021-7-13;
43 same 598.09 598.09 0.42% 8,000.00 N - 2020-099, 2020-107,
Technology service fees and g price settlement 2021-7-29 and
controlling 2021-050, 2021-053,
Co., Ltd inspection and 2021-12-21
shareholder 2021-058, 2021-104 and
certification fees
and ultimate 2021-106
etc.
controller
Juchao
Website(www.cninfo.com.
Sichuan Controlling 2020-12-12;
Electricity, steam, cn) Notice No.: 2020-097,
Changhong shareholder Purchase of Marketin Cash 2020-12-30; 2021-7-13;
44 water, compressed 1,997.74 1,997.74 0.14% 60,000.00 N - 2020-099, 2020-107,
Electric Co., and ultimate fuel power g price settlement 2021-7-29 and
air 2021-050, 2021-053,
Ltd. controller 2021-12-21
2021-058, 2021-104 and
2021-106
Other
enterprise Juchao
control Website(www.cninfo.com.
Changhong 2020-12-12;
under the cn) Notice No.: 2020-097,
Huayi Purchase of Marketin Cash 2020-12-30; 2021-7-13;
45 same Steam fee 45.17 45.17 0.00% 63,150.00 N - 2020-099, 2020-107,
Compressor fuel power g price settlement 2021-7-29 and
controlling 2021-050, 2021-053,
Co., Ltd. 2021-12-21
shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
control Website(www.cninfo.com.
Guangdong 2020-12-12;
under the Electricity, cn) Notice No.: 2020-097,
Changhong Purchase of Marketin Cash 2020-12-30; 2021-7-13;
46 same water, compressed 120.47 120.47 0.01% 13,000.00 N - 2020-099, 2020-107,
Electronics fuel power g price settlement 2021-7-29 and
controlling air 2021-050, 2021-053,
Co., Ltd. 2021-12-21
shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
Hefei control Website(www.cninfo.com.
2020-12-12;
Changhong under the cn) Notice No.: 2020-097,
Purchase of Marketin Cash 2020-12-30; 2021-7-13;
47 New Energy same Electricity fee 34.49 34.49 0.00% 13,000.00 N - 2020-099, 2020-107,
fuel power g price settlement 2021-7-29 and
Technology controlling 2021-050, 2021-053,
2021-12-21
Co., Ltd. shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
118
CHANGHONG MEILING CO.,LTD. Annual Report 2021
Other
enterprise Juchao
Sichuan control Website(www.cninfo.com.
2020-12-12;
Changhong under the cn) Notice No.: 2020-097,
Purchase of Marketin Cash 2020-12-30; 2021-7-13;
48 Property same Electricity fee 3.03 3.03 0.00% 8,000.00 N - 2020-099, 2020-107,
fuel power g price settlement 2021-7-29 and
Services Co., controlling 2021-050, 2021-053,
2021-12-21
Ltd. shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
Juchao
Air conditioners, Website(www.cninfo.com.
Sichuan Controlling Spot 2020-12-12;
waste materials, Marketin cn) Notice No.: 2020-097,
Changhong shareholder Sales of exchange, 2020-12-30; 2021-7-13;
49 426.60 426.60 0.02% 8,000.00 N - 2020-099, 2020-107,
Electric Co., and ultimate goods small appliances g price Bank 2021-7-29 and
2021-050, 2021-053,
Ltd. controller acceptance 2021-12-21
2021-058, 2021-104 and
2021-106
Juchao
Sichuan
Website(www.cninfo.com.
Changhong Controlling 2020-12-12;
cn) Notice No.: 2020-097,
Electronics shareholder Sales of Car refrigerator, Marketin Cash 2020-12-30; 2021-7-13;
50 18.06 18.06 0.00% 3,100.00 N - 2020-099, 2020-107,
Holding and ultimate goods small appliances g price settlement 2021-7-29 and
2021-050, 2021-053,
Group Co., controller 2021-12-21
2021-058, 2021-104 and
Ltd.
2021-106
Other
enterprise Juchao
control Website(www.cninfo.com.
Sichuan Spot 2020-12-12;
under the cn) Notice No.: 2020-097,
Changhong Sales of Steel plate, base Marketin exchange, 2020-12-30; 2021-7-13;
51 same 4,867.94 4,867.94 0.28% 8,000.00 N - 2020-099, 2020-107,
Jijia Fine Co., goods plate, bracket etc. g price Bank 2021-7-29 and
controlling 2021-050, 2021-053,
Ltd. acceptance 2021-12-21
shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
control Refrigerator and Website(www.cninfo.com.
Sichuan Spot 2020-12-12;
under the washing machine cn) Notice No.: 2020-097,
Changhong Sales of Marketin exchange, 2020-12-30; 2021-7-13;
52 same components, 19,808.97 19,808.97 1.14% 32,000.00 N - 2020-099, 2020-107,
Mold Plastic goods g price Bank 2021-7-29 and
controlling accessories, small 2021-050, 2021-053,
Tech. Co., Ltd. acceptance 2021-12-21
shareholder appliances etc. 2021-058, 2021-104 and
and ultimate 2021-106
controller
53 Lejiayi Chain Other Air conditioner, 2020-12-12; Juchao
Sales of Marketin 53.10 53.10 0.00% 15,000.00 N Cash -
Management enterprise Refrigerator, 2020-12-30; 2021-7-13; Website(www.cninfo.com.
119
CHANGHONG MEILING CO.,LTD. Annual Report 2021
Co., Ltd. control goods freezer, small g price settlement 2021-7-29 and cn) Notice No.: 2020-097,
under the appliances, etc. 2021-12-21 2020-099, 2020-107,
same 2021-050, 2021-053,
controlling 2021-058, 2021-104 and
shareholder 2021-106
and ultimate
controller
Other
enterprise Juchao
Sichuan control Washing machine, Website(www.cninfo.com.
Spot 2020-12-12;
Zhiyijia under the freezers, air cn) Notice No.: 2020-097,
Sales of Marketin exchange, 2020-12-30; 2021-7-13;
54 Network same conditioners, 650,051.03 650,051.03 37.51% 700,000.00 N - 2020-099, 2020-107,
goods g price Bank 2021-7-29 and
Technology controlling small appliances 2021-050, 2021-053,
acceptance 2021-12-21
Co., Ltd. shareholder etc. 2021-058, 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
Sichuan control Website(www.cninfo.com.
2020-12-12;
Changhong under the Kitchen and cn) Notice No.: 2020-097,
Sales of Marketin Cash 2020-12-30; 2021-7-13;
55 Device same bathroom, small 0.08 0.08 0.00% 15,000.00 N - 2020-099, 2020-107,
goods g price settlement 2021-7-29 and
Technology controlling appliances 2021-050, 2021-053,
2021-12-21
Co., Ltd. shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
Sichuan control Website(www.cninfo.com.
2020-12-12;
Changhong under the Cartons, liners, air cn) Notice No.: 2020-097,
Sales of Marketin Cash 2020-12-30; 2021-7-13;
56 Minsheng same conditioners, 27.05 27.05 0.00% 15,000.00 N - 2020-099, 2020-107,
goods g price settlement 2021-7-29 and
Logistics Co., controlling refrigerators etc. 2021-050, 2021-053,
2021-12-21
Ltd. shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
Sichuan control Air Website(www.cninfo.com.
2020-12-12;
Service Exp. under the conditioners,inver cn) Notice No.: 2020-097,
Sales of Marketin Cash 2020-12-30; 2021-7-13;
57 Appliance same ter integrated 655.49 655.49 0.04% 15,000.00 N - 2020-099, 2020-107,
goods g price settlement 2021-7-29 and
Service Chain controlling boards, 2021-050, 2021-053,
2021-12-21
Co., Ltd. shareholder components etc. 2021-058, 2021-104 and
and ultimate 2021-106
controller
120
CHANGHONG MEILING CO.,LTD. Annual Report 2021
Other
enterprise Juchao
control Website(www.cninfo.com.
Hefei 2020-12-12;
under the cn) Notice No.: 2020-097,
Changhong Sales of Micro controllers, Marketin Cash 2020-12-30; 2021-7-13;
58 same 7.89 7.89 0.00% 15,000.00 N - 2020-099, 2020-107,
Industrial Co., goods etc. g price settlement 2021-7-29 and
controlling 2021-050, 2021-053,
Ltd. 2021-12-21
shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
control Website(www.cninfo.com.
Sichuan Air conditioner, 2020-12-12;
under the cn) Notice No.: 2020-097,
Changhong Sales of Kitchen and Marketin Cash 2020-12-30; 2021-7-13;
59 same 6.63 6.63 0.00% 15,000.00 N - 2020-099, 2020-107,
Real Estate goods bathroom, small g price settlement 2021-7-29 and
controlling 2021-050, 2021-053,
Co., Ltd. appliances 2021-12-21
shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
Sichuan control Website(www.cninfo.com.
2020-12-12;
Changhong under the cn) Notice No.: 2020-097,
Sales of Marketin Cash 2020-12-30; 2021-7-13;
60 Network same Car refrigerator 0.39 0.39 0.00% 15,000.00 N - 2020-099, 2020-107,
goods g price settlement 2021-7-29 and
Technology controlling 2021-050, 2021-053,
2021-12-21
Co., Ltd. shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
control Website(www.cninfo.com.
Guangdong 2020-12-12;
under the Air conditioner, cn) Notice No.: 2020-097,
Changhong Sales of Marketin Cash 2020-12-30; 2021-7-13;
61 same kitchen and 32.01 32.01 0.00% 15,000.00 N - 2020-099, 2020-107,
Electronics goods g price settlement 2021-7-29 and
controlling bathroom 2021-050, 2021-053,
Co., Ltd. 2021-12-21
shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
Other Juchao
Sichuan
enterprise Website(www.cninfo.com.
Changhong Equipment 2020-12-12;
control cn) Notice No.: 2020-097,
Intelligent Sales of installation and Marketin Cash 2020-12-30; 2021-7-13;
62 under the 1.41 1.41 0.00% 3,100.00 N - 2020-099, 2020-107,
Manufacturing goods commissioning g price settlement 2021-7-29 and
same 2021-050, 2021-053,
Technology accessories 2021-12-21
controlling 2021-058, 2021-104 and
Co., Ltd.
shareholder 2021-106
121
CHANGHONG MEILING CO.,LTD. Annual Report 2021
and ultimate
controller
Other
enterprise Juchao
control Website(www.cninfo.com.
Changhong 2020-12-12;
under the cn) Notice No.: 2020-097,
Huayi Sales of Marketin Cash 2020-12-30; 2021-7-13;
63 same Air conditioner 3.76 3.76 0.00% 63,150.00 N - 2020-099, 2020-107,
Compressor goods g price settlement 2021-7-29 and
controlling 2021-050, 2021-053,
Co., Ltd. 2021-12-21
shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
control Website(www.cninfo.com.
Sichuan 2020-12-12;
under the cn) Notice No.: 2020-097,
Changhong Sales of Marketin Cash 2020-12-30; 2021-7-13;
64 same Air conditioner 16.99 16.99 0.00% 15,000.00 N - 2020-099, 2020-107,
Power Source goods g price settlement 2021-7-29 and
controlling 2021-050, 2021-053,
Co., Ltd. 2021-12-21
shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
control Website(www.cninfo.com.
2020-12-12;
081 Electronic under the cn) Notice No.: 2020-097,
Sales of Marketin Cash 2020-12-30; 2021-7-13;
65 Group Co., same Air conditioner 0.08 0.08 0.00% 15,000.00 N - 2020-099, 2020-107,
goods g price settlement 2021-7-29 and
Ltd. controlling 2021-050, 2021-053,
2021-12-21
shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
Guangyuan control Website(www.cninfo.com.
Air conditioner、 2020-12-12;
Changhong under the cn) Notice No.: 2020-097,
Sales of Kitchen and Marketin Cash 2020-12-30; 2021-7-13;
66 Electronic same 15.43 15.43 0.00% 15,000.00 N - 2020-099, 2020-107,
goods bathroom, small g price settlement 2021-7-29 and
Technology controlling 2021-050, 2021-053,
appliances 2021-12-21
Co., Ltd. shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
Sichuan Other 2020-12-12; Juchao
Hongxin enterprise Sales of Air conditioner, Marketin Cash 2020-12-30; 2021-7-13; Website(www.cninfo.com.
67 control 12.11 12.11 0.00% 15,000.00 N - cn) Notice No.: 2020-097,
Software Co., goods small appliances g price settlement 2021-7-29 and
Ltd. under the 2021-12-21 2020-099, 2020-107,
same 2021-050, 2021-053,
122
CHANGHONG MEILING CO.,LTD. Annual Report 2021
controlling 2021-058, 2021-104 and
shareholder 2021-106
and ultimate
controller
Other
enterprise Juchao
control Website(www.cninfo.com.
PT.CHANGH 2020-12-12;
under the cn) Notice No.: 2020-097,
ONGELECTR Sales of Marketin Cash 2020-12-30; 2021-7-13;
68 same Air conditioner 27.80 27.80 0.00% 15,000.00 N - 2020-099, 2020-107,
ICINDONESI goods g price settlement 2021-7-29 and
controlling 2021-050, 2021-053,
A 2021-12-21
shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
control Website(www.cninfo.com.
2020-12-12;
CHANGHON under the cn) Notice No.: 2020-097,
Sales of Marketin Cash 2020-12-30; 2021-7-13;
69 G(HK)TRADI same Air conditioner 29,876.00 29,876.00 1.72% 170,000.00 N - 2020-099, 2020-107,
goods g price settlement 2021-7-29 and
NGLIMITED controlling 2021-050, 2021-053,
2021-12-21
shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
control Website(www.cninfo.com.
CHANGHON Refrigerator, 2020-12-12;
under the cn) Notice No.: 2020-097,
GELECTRIC( Sales of freezers, washing Marketin Cash 2020-12-30; 2021-7-13;
70 same 12,752.56 12,752.56 0.74% 170,000.00 N - 2020-099, 2020-107,
AUSTRALIA) goods machines and g price settlement 2021-7-29 and
controlling 2021-050, 2021-053,
PTY.LTD. accessories 2021-12-21
shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
control Website(www.cninfo.com.
2020-12-12;
under the cn) Notice No.: 2020-097,
Orion.PDP.Co. Sales of Refrigerator and Marketin Cash 2020-12-30; 2021-7-13;
71 same 3,967.89 3,967.89 0.23% 4,500.00 N - 2020-099, 2020-107,
,ltd goods components g price settlement 2021-7-29 and
controlling 2021-050, 2021-053,
2021-12-21
shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
ChanghongEu Other 2020-12-12; Juchao
Sales of Marketin Cash
72 ropeElectrics.r enterprise Refrigerator 7,082.16 7,082.16 0.41% 8,000.00 N - 2020-12-30; 2021-7-13; Website(www.cninfo.com.
goods g price settlement
.o control 2021-7-29 and cn) Notice No.: 2020-097,
123
CHANGHONG MEILING CO.,LTD. Annual Report 2021
under the 2021-12-21 2020-099, 2020-107,
same 2021-050, 2021-053,
controlling 2021-058, 2021-104 and
shareholder 2021-106
and ultimate
controller
Other
enterprise Juchao
control Website(www.cninfo.com.
CHANGHON 2020-12-12;
under the Refrigerator, cn) Notice No.: 2020-097,
GELECTRIC Sales of Marketin Cash 2020-12-30; 2021-7-13;
73 same freezers and 349.94 349.94 0.02% 15,000.00 N - 2020-099, 2020-107,
MIDDLEEAS goods g price settlement 2021-7-29 and
controlling accessories 2021-050, 2021-053,
TFZCO 2021-12-21
shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
Changhong control Website(www.cninfo.com.
Refrigerator, 2020-12-12;
International under the cn) Notice No.: 2020-097,
Sales of freezers, Air Marketin Cash 2020-12-30; 2021-7-13;
74 Holdings same 16,426.96 16,426.96 0.95% 35,000.00 N - 2020-099, 2020-107,
goods conditioner, g price settlement 2021-7-29 and
(Hong Kong) controlling 2021-050, 2021-053,
kitchen ware, etc. 2021-12-21
Co., Ltd. shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
Sichuan control Website(www.cninfo.com.
Photocouplers, 2020-12-12;
Aichuang under the cn) Notice No.: 2020-097,
Sales of refrigerant, Marketin Cash 2020-12-30; 2021-7-13;
75 Science & same 23.03 23.03 0.00% 3,100.00 N - 2020-099, 2020-107,
goods integrated circuits, g price settlement 2021-7-29 and
Technology controlling 2021-050, 2021-053,
etc. 2021-12-21
Co., Ltd. shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
Sichuan control Website(www.cninfo.com.
2020-12-12;
Hongmofang under the cn) Notice No.: 2020-097,
Sales of Marketin Cash 2020-12-30; 2021-7-13;
76 Network same Car refrigerator 0.49 0.49 0.00% 15,000.00 N - 2020-099, 2020-107,
goods g price settlement 2021-7-29 and
Technology controlling 2021-050, 2021-053,
2021-12-21
Co., Ltd. shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
77 Changhong Other Sales of Air conditioner Marketin 123.88 123.88 0.01% 63,150.00 N Bank - 2020-12-12; Juchao
124
CHANGHONG MEILING CO.,LTD. Annual Report 2021
Grand-Pro enterprise goods g price acceptance 2020-12-30; 2021-7-13; Website(www.cninfo.com.
Technology control 2021-7-29 and cn) Notice No.: 2020-097,
Co., Ltd. under the 2021-12-21 2020-099, 2020-107,
same 2021-050, 2021-053,
controlling 2021-058, 2021-104 and
shareholder 2021-106
and ultimate
controller
Other
Sichuan enterprise Juchao
Changhong control Website(www.cninfo.com.
2020-12-12;
Jiechuang under the cn) Notice No.: 2020-097,
Sales of Marketin Bank 2020-12-30; 2021-7-13;
78 Lithium same Air conditioner 126.35 126.35 0.01% 3,100.00 N - 2020-099, 2020-107,
goods g price acceptance 2021-7-29 and
Battery controlling 2021-050, 2021-053,
2021-12-21
Technology shareholder 2021-058, 2021-104 and
Co., Ltd. and ultimate 2021-106
controller
Other
enterprise Juchao
control Website(www.cninfo.com.
Sichuan 2020-12-12;
under the cn) Notice No.: 2020-097,
Ansify Sales of Marketin Cash 2020-12-30; 2021-7-13;
79 same Air conditioner 12.51 12.51 0.00% 3,100.00 N - 2020-099, 2020-107,
Technology goods g price settlement 2021-7-29 and
controlling 2021-050, 2021-053,
Co., Ltd. 2021-12-21
shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
Juchao
Sichuan
Website(www.cninfo.com.
Changhong Controlling 2020-12-12;
cn) Notice No.: 2020-097,
Electronics shareholder provide Marketin Cash 2020-12-30; 2021-7-13;
80 Labor costs -1.08 -1.08 -0.02% 3,100.00 N - 2020-099, 2020-107,
Holding and ultimate labor g price settlement 2021-7-29 and
2021-050, 2021-053,
Group Co., controller 2021-12-21
2021-058, 2021-104 and
Ltd.
2021-106
Other
enterprise Juchao
control Website(www.cninfo.com.
Sichuan 2020-12-12;
under the cn) Notice No.: 2020-097,
Changhong provide Marketin Cash 2020-12-30; 2021-7-13;
81 same Labor costs 19.37 19.37 0.41% 5,600.00 N - 2020-099, 2020-107,
Mold Plastic labor g price settlement 2021-7-29 and
controlling 2021-050, 2021-053,
Tech. Co., Ltd. 2021-12-21
shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
82 Sichuan Other provide Labor costs Marketin 27.14 27.14 0.57% 5,600.00 N Cash - 2020-12-12; Juchao
125
CHANGHONG MEILING CO.,LTD. Annual Report 2021
Changhong enterprise labor g price settlement 2020-12-30; 2021-7-13; Website(www.cninfo.com.
Jijia Fine Co., control 2021-7-29 and cn) Notice No.: 2020-097,
Ltd. under the 2021-12-21 2020-099, 2020-107,
same 2021-050, 2021-053,
controlling 2021-058, 2021-104 and
shareholder 2021-106
and ultimate
controller
Other
enterprise Juchao
Sichuan control Website(www.cninfo.com.
2020-12-12;
Aichuang under the cn) Notice No.: 2020-097,
provide Technical service Marketin Cash 2020-12-30; 2021-7-13;
83 Science & same 198.33 198.33 4.20% 3,100.00 N - 2020-099, 2020-107,
labor fee, Labor costs g price settlement 2021-7-29 and
Technology controlling 2021-050, 2021-053,
2021-12-21
Co., Ltd. shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
Sichuan control Website(www.cninfo.com.
2020-12-12;
Huafeng under the System cn) Notice No.: 2020-097,
provide Marketin Cash 2020-12-30; 2021-7-13;
84 Enterprise same development 1.32 1.32 0.03% 3,100.00 N - 2020-099, 2020-107,
labor g price settlement 2021-7-29 and
Group Co., controlling service fee 2021-050, 2021-053,
2021-12-21
Ltd. shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
Sichuan control Website(www.cninfo.com.
2020-12-12;
Zhiyijia under the cn) Notice No.: 2020-097,
provide Marketin Cash 2020-12-30; 2021-7-13;
85 Network same Service fee 2.23 2.23 0.05% 5,600.00 N - 2020-099, 2020-107,
labor g price settlement 2021-7-29 and
Technology controlling 2021-050, 2021-053,
2021-12-21
Co., Ltd. shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
Juchao
Website(www.cninfo.com.
Sichuan Controlling 2020-12-12;
cn) Notice No.: 2020-097,
Changhong shareholder provide Marketin Cash 2020-12-30; 2021-7-13;
86 Labor costs 417.71 417.71 8.84% 5,600.00 N - 2020-099, 2020-107,
Electric Co., and ultimate labor g price settlement 2021-7-29 and
2021-050, 2021-053,
Ltd. controller 2021-12-21
2021-058, 2021-104 and
2021-106
87 Sichuan Other provide Technical service Marketin 9.06 9.06 0.19% 5,600.00 N Cash - 2020-12-12; Juchao
126
CHANGHONG MEILING CO.,LTD. Annual Report 2021
Changhong enterprise labor fee, g price settlement 2020-12-30; 2021-7-13; Website(www.cninfo.com.
Device control 2021-7-29 and cn) Notice No.: 2020-097,
Technology under the 2021-12-21 2020-099, 2020-107,
Co., Ltd. same 2021-050, 2021-053,
controlling 2021-058, 2021-104 and
shareholder 2021-106
and ultimate
controller
Other
enterprise Juchao
Sichuan control Website(www.cninfo.com.
2020-12-12;
Changhong under the cn) Notice No.: 2020-097,
provide Marketin Cash 2020-12-30; 2021-7-13;
88 Network same Labor costs 61.03 61.03 1.29% 5,600.00 N - 2020-099, 2020-107,
labor g price settlement 2021-7-29 and
Technology controlling 2021-050, 2021-053,
2021-12-21
Co., Ltd. shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
control Website(www.cninfo.com.
Changhong 2020-12-12;
under the cn) Notice No.: 2020-097,
Huayi provide Marketin Cash 2020-12-30; 2021-7-13;
89 same Labor costs 124.57 124.57 2.64% 63,150.00 N - 2020-099, 2020-107,
Compressor labor g price settlement 2021-7-29 and
controlling 2021-050, 2021-053,
Co., Ltd. 2021-12-21
shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
Sichuan control Website(www.cninfo.com.
2020-12-12;
Changhong under the cn) Notice No.: 2020-097,
provide Marketin Cash 2020-12-30; 2021-7-13;
90 Minsheng same Labor costs 26.20 26.20 0.55% 5,.600.00 N - 2020-099, 2020-107,
labor g price settlement 2021-7-29 and
Logistics Co., controlling 2021-050, 2021-053,
2021-12-21
Ltd. shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
Other Juchao
enterprise Website(www.cninfo.com.
2020-12-12;
Sichuan Ailian control cn) Notice No.: 2020-097,
under the provide Marketin Cash 2020-12-30; 2021-7-13;
91 Technology Labor costs 0.01 0.01 0.00% 3,100.00 N - 2020-099, 2020-107,
same labor g price settlement 2021-7-29 and
Co., Ltd. 2021-050, 2021-053,
controlling 2021-12-21
2021-058, 2021-104 and
shareholder 2021-106
and ultimate
127
CHANGHONG MEILING CO.,LTD. Annual Report 2021
controller
Other
enterprise Juchao
control Website(www.cninfo.com.
Hefei 2020-12-12;
under the cn) Notice No.: 2020-097,
Changhong provide Marketin Cash 2020-12-30; 2021-7-13;
92 same Labor costs 0.07 0.07 0.00% 5,600.00 N - 2020-099, 2020-107,
Industrial Co., labor g price settlement 2021-7-29 and
controlling 2021-050, 2021-053,
Ltd. 2021-12-21
shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
Sichuan control Website(www.cninfo.com.
2020-12-12;
Service Exp. under the cn) Notice No.: 2020-097,
provide Marketin Cash 2020-12-30; 2021-7-13;
93 Appliance same Labor costs 0.72 0.72 0.02% 5,600.00 N - 2020-099, 2020-107,
labor g price settlement 2021-7-29 and
Service Chain controlling 2021-050, 2021-053,
2021-12-21
Co., Ltd. shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
Sichuan control Website(www.cninfo.com.
2020-12-12;
Changhong under the cn) Notice No.: 2020-097,
provide Technical service Marketin Cash 2020-12-30; 2021-7-13;
94 Electronic same 9.43 9.43 0.20% 3,100.00 N - 2020-099, 2020-107,
labor fee, g price settlement 2021-7-29 and
Technology controlling 2021-050, 2021-053,
2021-12-21
Co., Ltd. shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
Sichuan control Website(www.cninfo.com.
2020-12-12;
Changhong under the cn) Notice No.: 2020-097,
provide Marketin Cash 2020-12-30; 2021-7-13;
95 International same Maintenance fee 7.94 7.94 0.17% 3,100.00 N - 2020-099, 2020-107,
labor g price settlement 2021-7-29 and
Hotel Co., controlling 2021-050, 2021-053,
2021-12-21
Ltd. shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
Other Juchao
2020-12-12;
081 Electronic enterprise Website(www.cninfo.com.
control provide Marketin Cash 2020-12-30; 2021-7-13; cn) Notice No.: 2020-097,
96 Group Co., Maintenance fee 4.72 4.72 0.10% 5,600.00 N -
under the labor g price settlement 2021-7-29 and 2020-099, 2020-107,
Ltd.
same 2021-12-21 2021-050, 2021-053,
controlling 2021-058, 2021-104 and
128
CHANGHONG MEILING CO.,LTD. Annual Report 2021
shareholder 2021-106
and ultimate
controller
Other
enterprise Juchao
Sichuan control Website(www.cninfo.com.
2020-12-12;
Changhong under the cn) Notice No.: 2020-097,
provide Marketin Cash 2020-12-30; 2021-7-13;
97 Electronic same Labor costs 1.10 1.10 0.02% 5,600.00 N - 2020-099, 2020-107,
labor g price settlement 2021-7-29 and
Products Co., controlling 2021-050, 2021-053,
2021-12-21
Ltd. shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
control Website(www.cninfo.com.
Sichuan 2020-12-12;
under the cn) Notice No.: 2020-097,
Hongwei provide Marketin Cash 2020-12-30; 2021-7-13;
98 same Service fee 0.14 0.14 0.00% 5,600.00 N - 2020-099, 2020-107,
Technology labor g price settlement 2021-7-29 and
controlling 2021-050, 2021-053,
Co., Ltd. 2021-12-21
shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
control Website(www.cninfo.com.
Guangdong 2020-12-12;
under the cn) Notice No.: 2020-097,
Changhong provide Installation fee, Marketin Cash 2020-12-30; 2021-7-13;
99 same 49.10 49.10 1.04% 5,600.00 N - 2020-099, 2020-107,
Electronics labor Labor costs g price settlement 2021-7-29 and
controlling 2021-050, 2021-053,
Co., Ltd. 2021-12-21
shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
Sichuan control Website(www.cninfo.com.
2020-12-12;
Changhong under the cn) Notice No.: 2020-097,
provide Marketin Cash 2020-12-30; 2021-7-13;
100 Precision same Labor costs 0.51 0.51 0.01% 5,600.00 N - 2020-099, 2020-107,
labor g price settlement 2021-7-29 and
Electronics controlling 2021-050, 2021-053,
2021-12-21
Tech. Co., Ltd. shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
Sichuan Other 2020-12-12; Juchao
provide Marketin Cash 2020-12-30; 2021-7-13;
101 Changhong enterprise Labor costs 0.94 0.94 0.02% 3,100.00 N - Website(www.cninfo.com.
Gerun control labor g price settlement 2021-7-29 and cn) Notice No.: 2020-097,
Environmental under the 2021-12-21 2020-099, 2020-107,
129
CHANGHONG MEILING CO.,LTD. Annual Report 2021
Protection same 2021-050, 2021-053,
Tech. Co., Ltd. controlling 2021-058, 2021-104 and
shareholder 2021-106
and ultimate
controller
Other
enterprise Juchao
control Website(www.cninfo.com.
Changhong 2020-12-12;
under the cn) Notice No.: 2020-097,
Grand-Pro provide Marketin Bank 2020-12-30; 2021-7-13;
102 same Installation fee, 116.53 116.53 2.47% 63,150.00 N - 2020-099, 2020-107,
Technology labor g price acceptance 2021-7-29 and
controlling 2021-050, 2021-053,
Co., Ltd. 2021-12-21
shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
control Website(www.cninfo.com.
Yuanxin 2020-12-12;
under the Service fee of cn) Notice No.: 2020-097,
Financial provide Marketin Cash 2020-12-30; 2021-7-13;
103 same Financial 49.34 49.34 1.04% 65,000.00 N - 2020-099, 2020-107,
Lease Co., labor g price settlement 2021-7-29 and
controlling statement 2021-050, 2021-053,
Ltd. 2021-12-21
shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
Sichuan control Website(www.cninfo.com.
2020-12-12;
Changhong under the cn) Notice No.: 2020-097,
provide Technical service Marketin Cash 2020-12-30; 2021-7-13;
104 Property same 8.58 8.58 0.18% 3,100.00 N - 2020-099, 2020-107,
labor fee, g price settlement 2021-7-29 and
Services Co., controlling 2021-050, 2021-053,
2021-12-21
Ltd. shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
control Website(www.cninfo.com.
Sichuan 2020-12-12;
under the cn) Notice No.: 2020-097,
Ansify provide Marketin Cash 2020-12-30; 2021-7-13;
105 same Installation fee, 11.09 11.09 0.23% 3,100.00 N - 2020-099, 2020-107,
Technology labor g price settlement 2021-7-29 and
controlling 2021-050, 2021-053,
Co., Ltd. 2021-12-21
shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
provide Marketin Bank
106 Sichuan Other Installation fee, 108.90 108.90 2.31% 3,100.00 N - 2020-12-12; Juchao
Changhong enterprise labor g price acceptance 2020-12-30; 2021-7-13; Website(www.cninfo.com.
130
CHANGHONG MEILING CO.,LTD. Annual Report 2021
Jiechuang control 2021-7-29 and cn) Notice No.: 2020-097,
Lithium under the 2021-12-21 2020-099, 2020-107,
Battery same 2021-050, 2021-053,
Technology controlling 2021-058, 2021-104 and
Co., Ltd. shareholder 2021-106
and ultimate
controller
Other
enterprise Juchao
control Website(www.cninfo.com.
Guangdong 2020-12-12;
under the cn) Notice No.: 2020-097,
Changhong Provide fuel Water, Electricity Marketin Cash 2020-12-30; 2021-7-13;
107 same 1.62 1.62 0.00% 15,000.00 N - 2020-099, 2020-107,
Electronics power fee, gas fee g price settlement 2021-7-29 and
controlling 2021-050, 2021-053,
Co., Ltd. 2021-12-21
shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
Sichuan control Website(www.cninfo.com.
2020-12-12;
Changhong under the cn) Notice No.: 2020-097,
Provide fuel Water, Electricity Marketin Cash 2020-12-30; 2021-7-13;
108 Minsheng same 5.77 5.77 0.00% 15,000.00 N - 2020-099, 2020-107,
power fee g price settlement 2021-7-29 and
Logistics Co., controlling 2021-050, 2021-053,
2021-12-21
Ltd. shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
control Website(www.cninfo.com.
Sichuan 2020-12-12;
under the cn) Notice No.: 2020-097,
Changhong Provide fuel Water fee, Marketin Cash 2020-12-30; 2021-7-13;
109 same 15.06 15.06 0.00% 15,000.00 N - 2020-099, 2020-107,
Jijia Fine Co., power Electricity fee g price settlement 2021-7-29 and
controlling 2021-050, 2021-053,
Ltd. 2021-12-21
shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
control Website(www.cninfo.com.
Sichuan 2020-12-12;
under the Water fee, cn) Notice No.: 2020-097,
Changhong Provide fuel Marketin Cash 2020-12-30; 2021-7-13;
110 same Electricity fee, 700.84 700.84 0.04% 15,000.00 N - 2020-099, 2020-107,
Mold Plastic power g price settlement 2021-7-29 and
controlling Steam fee 2021-050, 2021-053,
Tech. Co., Ltd. 2021-12-21
shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
131
CHANGHONG MEILING CO.,LTD. Annual Report 2021
Other
enterprise Juchao
Sichuan control Website(www.cninfo.com.
2020-12-12;
Zhiyijia under the cn) Notice No.: 2020-097,
Provide fuel Water fee, Marketin Cash 2020-12-30; 2021-7-13;
111 Network same 5.00 5.00 0.00% 15,000.00 N - 2020-099, 2020-107,
power Electricity fee g price settlement 2021-7-29 and
Technology controlling 2021-050, 2021-053,
2021-12-21
Co., Ltd. shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
Sichuan control Website(www.cninfo.com.
2020-12-12;
Changhong under the cn) Notice No.: 2020-097,
Provide fuel Water fee, Marketin Cash 2020-12-30; 2021-7-13;
112 Precision same 1.69 1.69 0.00% 15,000.00 N - 2020-099, 2020-107,
power Electricity fee g price settlement 2021-7-29 and
Electronics controlling 2021-050, 2021-053,
2021-12-21
Tech. Co., Ltd. shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
Sichuan control Website(www.cninfo.com.
2020-12-12;
Changhong under the Water fee, cn) Notice No.: 2020-097,
Provide fuel Marketin Cash 2020-12-30; 2021-7-13;
113 Device same Electricity fee, 71.03 71.03 0.00% 15,000.00 N - 2020-099, 2020-107,
power g price settlement 2021-7-29 and
Technology controlling compressed air 2021-050, 2021-053,
2021-12-21
Co., Ltd. shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
Changhong control Website(www.cninfo.com.
2020-12-12;
International under the cn) Notice No.: 2020-097,
Provide fuel Water fee, Marketin Cash 2020-12-30; 2021-7-13;
114 Holdings same 10.13 10.13 0.00% 15,000.00 N - 2020-099, 2020-107,
power Electricity fee g price settlement 2021-7-29 and
(Hong Kong) controlling 2021-050, 2021-053,
2021-12-21
Co., Ltd. shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
Other Juchao
enterprise Website(www.cninfo.com.
Guangdong 2020-12-12;
control Rental to cn) Notice No.: 2020-097,
Changhong Second floor Marketin Cash 2020-12-30; 2021-7-13;
115 under the related 5.09 5.09 0.04% 5,000.00 N - 2020-099, 2020-107,
Electronics living area for rent g price settlement 2021-7-29 and
same parties 2021-050, 2021-053,
Co., Ltd. 2021-12-21
controlling 2021-058, 2021-104 and
shareholder 2021-106
132
CHANGHONG MEILING CO.,LTD. Annual Report 2021
and ultimate
controller
Other
enterprise Juchao
control Website(www.cninfo.com.
Hefei 2020-12-12;
under the Rental to cn) Notice No.: 2020-097,
Changhong Rental apartment, Marketin Cash 2020-12-30; 2021-7-13;
116 same related 27.15 27.15 0.20% 5,000.00 N - 2020-099, 2020-107,
Industrial Co., warehouses g price settlement 2021-7-29 and
controlling parties 2021-050, 2021-053,
Ltd. 2021-12-21
shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
Sichuan control Website(www.cninfo.com.
2020-12-12;
Aichuang under the Rental to cn) Notice No.: 2020-097,
Warehouses for Marketin Cash 2020-12-30; 2021-7-13;
117 Science & same related 4.94 4.94 0.04% 3,100.00 N - 2020-099, 2020-107,
rent g price settlement 2021-7-29 and
Technology controlling parties 2021-050, 2021-053,
2021-12-21
Co., Ltd. shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
control Website(www.cninfo.com.
2020-12-12;
Sichuan Ailian under the Rental to cn) Notice No.: 2020-097,
Warehouses for Marketin Cash 2020-12-30; 2021-7-13;
118 Technology same related 0.33 0.33 0.00% 3,100.00 N - 2020-099, 2020-107,
rent g price settlement 2021-7-29 and
Co., Ltd. controlling parties 2021-050, 2021-053,
2021-12-21
shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
control Website(www.cninfo.com.
Sichuan 2020-12-12;
under the Rental to cn) Notice No.: 2020-097,
Hongwei Marketin Cash 2020-12-30; 2021-7-13;
119 same related Lease of plant 4.73 4.73 0.03% 5,000.00 N - 2020-099, 2020-107,
Technology g price settlement 2021-7-29 and
controlling parties 2021-050, 2021-053,
Co., Ltd. 2021-12-21
shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
Sichuan Other Juchao
2020-12-12;
Huafeng enterprise Rental to Website(www.cninfo.com.
Meeting room for Marketin Cash 2020-12-30; 2021-7-13;
120 Enterprise control related 0.09 0.09 0.00% 3,100.00 N - cn) Notice No.: 2020-097,
rent g price settlement 2021-7-29 and
Group Co., under the parties 2020-099, 2020-107,
2021-12-21
Ltd. same 2021-050, 2021-053,
133
CHANGHONG MEILING CO.,LTD. Annual Report 2021
controlling 2021-058, 2021-104 and
shareholder 2021-106
and ultimate
controller
Other
enterprise Juchao
Sichuan control Website(www.cninfo.com.
2020-12-12;
Service Exp. under the Rental to cn) Notice No.: 2020-097,
Apartments and Marketin Cash 2020-12-30; 2021-7-13;
121 Appliance same related 19.26 19.26 0.14% 5,000.00 N - 2020-099, 2020-107,
offices for rent g price settlement 2021-7-29 and
Service Chain controlling parties 2021-050, 2021-053,
2021-12-21
Co., Ltd. shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
Juchao
Website(www.cninfo.com.
Sichuan Controlling 2020-12-12;
Rental to Rental of cn) Notice No.: 2020-097,
Changhong shareholder Marketin Cash 2020-12-30; 2021-7-13;
122 related equipment and 302.32 302.32 2.23% 5,000.00 N - 2020-099, 2020-107,
Electric Co., and ultimate g price settlement 2021-7-29 and
parties plants 2021-050, 2021-053,
Ltd. controller 2021-12-21
2021-058, 2021-104 and
2021-106
Other
enterprise Juchao
control Website(www.cninfo.com.
Sichuan 2020-12-12;
under the Rental to Rental apartment, cn) Notice No.: 2020-097,
Changhong Marketin Cash 2020-12-30; 2021-7-13;
123 same related warehouses. Plant 518.35 518.35 3.82% 5,000.00 N - 2020-099, 2020-107,
Jijia Fine Co., g price settlement 2021-7-29 and
controlling parties and equipment 2021-050, 2021-053,
Ltd. 2021-12-21
shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
Sichuan control Website(www.cninfo.com.
2020-12-12;
Changhong under the Rental to Rental apartment, cn) Notice No.: 2020-097,
Marketin Cash 2020-12-30; 2021-7-13;
124 Precision same related second floor 11.22 11.22 0.08% 5,000.00 N - 2020-099, 2020-107,
g price settlement 2021-7-29 and
Electronics controlling parties living area 2021-050, 2021-053,
2021-12-21
Tech. Co., Ltd. shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
Sichuan Other Juchao
2020-12-12;
Changhong enterprise Rental to Rental apartment , Website(www.cninfo.com.
Marketin Cash 2020-12-30; 2021-7-13;
125 Minsheng control related plant, office, part 105.22 105.22 0.78% 5,000.00 N - cn) Notice No.: 2020-097,
g price settlement 2021-7-29 and
Logistics Co., under the parties of the building 2020-099, 2020-107,
2021-12-21
Ltd. same 2021-050, 2021-053,
134
CHANGHONG MEILING CO.,LTD. Annual Report 2021
controlling 2021-058, 2021-104 and
shareholder 2021-106
and ultimate
controller
Other
enterprise Juchao
Rental apartment,
control Website(www.cninfo.com.
Sichuan plant ,warehouse, 2020-12-12;
under the Rental to cn) Notice No.: 2020-097,
Changhong equipment, and Marketin Cash 2020-12-30; 2021-7-13;
126 same related 987.28 987.28 7.27% 5,000.00 N - 2020-099, 2020-107,
Mold Plastic house and g price settlement 2021-7-29 and
controlling parties 2021-050, 2021-053,
Tech. Co., Ltd. buildings, second 2021-12-21
shareholder 2021-058, 2021-104 and
floor living area
and ultimate 2021-106
controller
Other
enterprise Juchao
Sichuan control Website(www.cninfo.com.
2020-12-12;
Changhong under the Rental to Lease of plant, cn) Notice No.: 2020-097,
Marketin Cash 2020-12-30; 2021-7-13;
127 Device same related second floor 216.46 216.46 1.59% 5,000.00 N - 2020-099, 2020-107,
g price settlement 2021-7-29 and
Technology controlling parties living area 2021-050, 2021-053,
2021-12-21
Co., Ltd. shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
Sichuan control Website(www.cninfo.com.
2020-12-12;
Zhiyijia under the Rental to cn) Notice No.: 2020-097,
Marketin Cash 2020-12-30; 2021-7-13;
128 Network same related Rental apartment 18.83 18.83 0.14% 5,000.00 N - 2020-099, 2020-107,
g price settlement 2021-7-29 and
Technology controlling parties 2021-050, 2021-053,
2021-12-21
Co., Ltd. shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
control Website(www.cninfo.com.
Changhong 2020-12-12;
under the Rental to cn) Notice No.: 2020-097,
Huayi Warehouses for Marketin Cash 2020-12-30; 2021-7-13;
129 same related 0.45 0.45 0.00% 63,150.00 N - 2020-099, 2020-107,
Compressor rent g price settlement 2021-7-29 and
controlling parties 2021-050, 2021-053,
Co., Ltd. 2021-12-21
shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
Chengdu Other Lease from 2020-12-12; Juchao
Marketin Cash
130 Changhong enterprise related Leasing office 68.83 68.83 0.51% 5,000.00 N - 2020-12-30; 2021-7-13; Website(www.cninfo.com.
g price settlement
Electronic control parties 2021-7-29 and cn) Notice No.: 2020-097,
135
CHANGHONG MEILING CO.,LTD. Annual Report 2021
Technology under the 2021-12-21 2020-099, 2020-107,
Co., Ltd. same 2021-050, 2021-053,
controlling 2021-058, 2021-104 and
shareholder 2021-106
and ultimate
controller
Other
enterprise Juchao
control Website(www.cninfo.com.
Guangdong 2020-12-12;
under the Lease from cn) Notice No.: 2020-097,
Changhong lease of plant, Marketin Cash 2020-12-30; 2021-7-13;
131 same related 123.34 123.34 0.91% 5,000.00 N - 2020-099, 2020-107,
Electronics staff dormitory g price settlement 2021-7-29 and
controlling parties 2021-050, 2021-053,
Co., Ltd. 2021-12-21
shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
control Website(www.cninfo.com.
Hefei 2020-12-12;
under the Lease from cn) Notice No.: 2020-097,
Changhong Marketin Cash 2020-12-30; 2021-7-13;
132 same related lease of plant, 31.01 31.01 0.23% 5,000.00 N - 2020-099, 2020-107,
Industrial Co., g price settlement 2021-7-29 and
controlling parties 2021-050, 2021-053,
Ltd. 2021-12-21
shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
control Website(www.cninfo.com.
Sichuan 2020-12-12;
under the Lease from cn) Notice No.: 2020-097,
Jiahong Lease of staff Marketin Cash 2020-12-30; 2021-7-13;
133 same related 20.52 20.52 0.15% 8,000.00 N - 2020-099, 2020-107,
Industrial Co., dormitory, flowers g price settlement 2021-7-29 and
controlling parties 2021-050, 2021-053,
Ltd. 2021-12-21
shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
Juchao
Website(www.cninfo.com.
Sichuan Controlling 2020-12-12;
Lease from cn) Notice No.: 2020-097,
Changhong shareholder Lease of VISA Marketin Cash 2020-12-30; 2021-7-13;
134 related 360.26 360.26 2.65% 5,000.00 N - 2020-099, 2020-107,
Electric Co., and ultimate laboratory, plant g price settlement 2021-7-29 and
parties 2021-050, 2021-053,
Ltd. controller 2021-12-21
2021-058, 2021-104 and
2021-106
Sichuan Controlling Lease from Lease of staff Marketin Cash 2020-12-12; Juchao
135 Changhong shareholder related 18.12 18.12 0.13% 8,000.00 N - 2020-12-30; 2021-7-13; Website(www.cninfo.com.
dormitory, stores g price settlement
Electronics and ultimate parties 2021-7-29 and cn) Notice No.: 2020-097,
136
CHANGHONG MEILING CO.,LTD. Annual Report 2021
Holding controller 2021-12-21 2020-099, 2020-107,
Group Co., 2021-050, 2021-053,
Ltd. 2021-058, 2021-104 and
2021-106
Other
enterprise Juchao
Sichuan control Website(www.cninfo.com.
2020-12-12;
Changhong under the Lease from cn) Notice No.: 2020-097,
Marketin Cash 2020-12-30; 2021-7-13;
136 Minsheng same related lease of plant 7.40 7.40 0.05% 5,000.00 N - 2020-099, 2020-107,
g price settlement 2021-7-29 and
Logistics Co., controlling parties 2021-050, 2021-053,
2021-12-21
Ltd. shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
Sichuan control Website(www.cninfo.com.
2020-12-12;
Changhong under the Lease from cn) Notice No.: 2020-097,
Lease of staff Marketin Cash 2020-12-30; 2021-7-13;
137 Property same related 0.53 0.53 0.00% 8,000.00 N - 2020-099, 2020-107,
dormitory, flowers g price settlement 2021-7-29 and
Services Co., controlling parties 2021-050, 2021-053,
2021-12-21
Ltd. shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
control Website(www.cninfo.com.
Changhong 2020-12-12;
under the Lease from cn) Notice No.: 2020-097,
Huayi Lease of staff Marketin Cash 2020-12-30; 2021-7-13;
138 same related 4.18 4.18 0.03% 63,150.00 N - 2020-099, 2020-107,
Compressor dormitory g price settlement 2021-7-29 and
controlling parties 2021-050, 2021-053,
Co., Ltd. 2021-12-21
shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
Production line,
Other line-N2 line
enterprise Juchao
Sichuan transformation,
control Website(www.cninfo.com.
Changhong Spot 2020-12-12;
under the Purchase/ac vacuum line Marketin cn) Notice No.: 2020-097,
Intelligent exchange, 2020-12-30; 2021-7-13;
139 same quisition of 999.08 999.08 2.99% 7,000.00 N - 2020-099, 2020-107,
Manufacturing g price Bank 2021-7-29 and
controlling fixed assets transformation 2021-050, 2021-053,
Technology acceptance 2021-12-21
shareholder and self-service 2021-058, 2021-104 and
Co., Ltd.
and ultimate 2021-106
controller sorting, baler
quality
137
CHANGHONG MEILING CO.,LTD. Annual Report 2021
improvement
transformation,
industrial internet
smart
manufacturing
project
Fire fighting
renovation, low Juchao
voltage cabinet Website(www.cninfo.com.
Sichuan Controlling 2020-12-12;
Acquisition cn) Notice No.: 2020-097,
Changhong shareholder renovation, Marketin Cash 2020-12-30; 2021-7-13;
140 of fixed 183.32 183.32 0.55% 10,000.00 N - 2020-099, 2020-107,
Electric Co., and ultimate g price settlement 2021-7-29 and
assets relocation and 2021-050, 2021-053,
Ltd. controller 2021-12-21
2021-058, 2021-104 and
renovation of 2021-106
equipment
Other
enterprise Juchao
control Acquisition Industrial internet Website(www.cninfo.com.
Sichuan 2020-12-12;
under the of fixed project, cn) Notice No.: 2020-097,
Hongxin Marketin Cash 2020-12-30; 2021-7-13;
141 same assets knowledge base 405.35 405.35 1.21% 10,000.00 N - 2020-099, 2020-107,
Software Co., g price settlement 2021-7-29 and
controlling /intangible management 2021-050, 2021-053,
Ltd. 2021-12-21
shareholder assets system, software 2021-058, 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
control Website(www.cninfo.com.
Sichuan 2020-12-12;
under the Acquisition cn) Notice No.: 2020-097,
Huanyu Marketin Cash 2020-12-30; 2021-7-13;
142 same of fixed Plant construction 36.70 36.70 0.11% 8,000.00 N - 2020-099, 2020-107,
Industrial Co., g price settlement 2021-7-29 and
controlling assets 2021-050, 2021-053,
Ltd. 2021-12-21
shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
Guangdong Other 2020-12-12; Juchao
enterprise Acquisition Website(www.cninfo.com.
Changhong Purchase of TV Marketin Cash 2020-12-30; 2021-7-13;
143 control of fixed 3.92 3.92 0.01% 10,000.00 N - cn) Notice No.: 2020-097,
Electronics for own use g price settlement 2021-7-29 and
under the assets 2020-099, 2020-107,
Co., Ltd. 2021-12-21
same 2021-050, 2021-053,
138
CHANGHONG MEILING CO.,LTD. Annual Report 2021
controlling 2021-058, 2021-104 and
shareholder 2021-106
and ultimate
controller
Other
enterprise Juchao
Sichuan control Website(www.cninfo.com.
2020-12-12;
Hongcheng under the Acquisition cn) Notice No.: 2020-097,
Plant construction Marketin Cash 2020-12-30; 2021-7-13;
144 Construction same of fixed 195.02 195.02 0.58% 8,000.00 N - 2020-099, 2020-107,
management g price settlement 2021-7-29 and
Engineering controlling assets 2021-050, 2021-053,
2021-12-21
Co., Ltd. shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
control Website(www.cninfo.com.
2020-12-12;
081 Electronic under the Acquisition cn) Notice No.: 2020-097,
Marketin Cash 2020-12-30; 2021-7-13;
145 Group Co., same of fixed Plant construction 106.42 106.42 0.32% 10,000.00 N - 2020-099, 2020-107,
g price settlement 2021-7-29 and
Ltd. controlling assets 2021-050, 2021-053,
2021-12-21
shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
Juchao
Website(www.cninfo.com.
Sichuan Controlling 2020-12-12;
Temporary cn) Notice No.: 2020-097,
Changhong shareholder Sale of fixed Marketin Cash 2020-12-30; 2021-7-13;
146 electrical 33.90 33.90 9.69% 10,000.00 N - 2020-099, 2020-107,
Electric Co., and ultimate assets g price settlement 2021-7-29 and
equipment 2021-050, 2021-053,
Ltd. controller 2021-12-21
2021-058, 2021-104 and
2021-106
Other
enterprise Juchao
control Website(www.cninfo.com.
Yuanxin 2020-12-12;
under the Financing Financial cn) Notice No.: 2020-097,
Financial Marketin Cash 2020-12-30; 2021-7-13;
147 same 49,202.19 49,202.19 -- 65,000.00 N - 2020-099, 2020-107,
Lease Co., business statement g price settlement 2021-7-29 and
controlling 2021-050, 2021-053,
Ltd. 2021-12-21
shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
Total -- -- 1,125,515.49 -- -- -- -- -- -- --
Detail of sales return with major amount involved Not applicable
Report the actual implementation of the daily related transactions 1. It is estimated that the related transaction amount resulted by purchasing goods (including door shell and plastic products etc.) and accepting fuel and
which were projected about their total amount by types during the
139
CHANGHONG MEILING CO.,LTD. Annual Report 2021
reporting period (if applicable) power from Sichuan Changhong and its subsidiary by the Company for year of 2021 was 2920 million yuan at most (tax-excluded), actually 179,680.97
yuan occurred in reporting period.
2. It is estimated that the related transaction amount resulted by purchasing compressor, sales of goods and accepting or provide labor serves with
Changhong Huayi and its subsidiary by the Company for year of 2021 was 646.5 million yuan at most (tax-excluded), actually 42,408.87 yuan occurred
in reporting period.
3. It is estimated that the related transaction amount resulted by purchasing or selling equipment, software, maintenance and spare parts and molds etc.
from Sichuan Changhong and its subsidiary by the Company for year of 2021 was 100 million yuan at most (tax-excluded), actually 7,329,100 yuan
occurred in 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 7,433,088,400 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 28,067,500 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 Co., Ltd. by the Company for year of 2021 was 600 million yuan at most (tax-excluded), actually 585,263,800 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 250,718,100 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 32,749,100
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 45,000,700 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 159,993,800 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 65 million yuan at most, actually 492,021,900 yuan occurred in reporting period.
Reasons for major differences between trading price and market
Not applicable
reference price (if applicable)
140
CHANGHONG MEILING CO.,LTD. Annual Report 2021
(ii) Related transactions by assets acquisition and sold
□Applicable √ Not applicable
There are no related transactions by assets acquisition and sold in the period
(iii) Related party transaction of joint foreign investment
□ Applicable √ Not applicable
No main related transactions of mutual investment outside for the Company in reporting period.
(iv) Connect of related liability and debt
√ Applicable □ Not applicable
Whether has non-operational contact of related liability and debts or not
□Yes √ No
No non-operational contact of related liability or debts in Period
(v) Contact with the related finance companies
√ Applicable □ Not applicable
Deposit business
Amount for the Period
Maximum daily The total Ending
Opening Total deposit
deposit limit (In Deposit interest amount Balance (10
Related party Relationship balance (In 10 amount for the
10 thousand rate range withdrawn in the thousand
thousand yuan) Period (10
yuan) Period (10 yuan)
thousand yuan)
thousand yuan)
Other enterprises
Sichuan
controlled by the
Changhong
same controlling 450,000.00 0.42%-4.805% 279,825.60 4,167,793.91 4,109,110.82 338,508.69
Group Finance
shareholder and
Co., Ltd.
ultimate controller
Credit extension or other financial business
Total amount ( 10 Actual amount ( 10
Related party Relationship Type of business
thousand yuan) thousand yuan)
Other enterprises
Sichuan Changhong Group controlled by the same Other financial services -
300,000.00 174,303.79
Finance Co., Ltd. controlling shareholder note issuance
and ultimate controller
Other enterprises
Sichuan Changhong Group controlled by the same Other financial services -
300,000.00 60,114.50
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
million yuan with its own funds, the total capital increase will not exceed one billion yuan. 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
141
CHANGHONG MEILING CO.,LTD. Annual Report 2021
Company respectively.
Note 2: After deliberated and approved by the 41st session of 9th BOD and 4thextraordinary 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.
(vi) Transactions between the finance company controlled by the Company and related parties
□ Applicable √ Not applicable
(vii) Other related party transactions
√ Applicable □ Not applicable
1. 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 and
its subsidiary Sichuan Hongwei Technology Co., Ltd. and Shenzhen Yijiaen Technology Co., Ltd., software R&D
platform and other R&D assets. In the Period, the Company and the aforementioned related parties have
completed the signing of the termination agreement.
2. On July 12, 2021, as approved by the resolutions of the 9th session of the 10th BOD and the 7th session of the
10th BOS of the company, it was agreed that the company would increase the daily related transactions amount of
no more than 300 million yuan (excluding taxes) for the financial leasing, commercial factoring, and bill financing
businesses provided by Yuanxin Leasing that the company and its holding subsidiaries were expected to accept in
2021. After this increase, the total amount of daily related transactions between the company and its holding
subsidiaries and Sichuan Changhong and its holding subsidiaries (excluding Changhong Huayi Compressor Co.,
Ltd.) in 2021 was expected to not exceed 14,406 million yuan (excluding taxes), of which the total amount of
daily related transactions with Yuanxin Leasing in 2021 was expected to not exceed 650 million yuan (excluding
taxes).
3. On August 16, 2021, as approved by the resolutions of the 10th session of the 10th BOD and the 8th session of
the 10th BOS of the company, it was agreed that the company would sign the Leasing Cooperation Agreement
with Hefei Changhong Industrial Co., Ltd. to lease the Plant No. 2 in Changhong Industrial Park, No. 6069,
Fangxing Avenue, Economic and Technological Development Zone, Hefei City, Anhui Province from Hefei
Changhong Industrial Co., Ltd. for carrying out the relocation and expansion project of the extrusion line, the
lease term is 10 years, the total leased plant area is 11,798.31 square meters, and the monthly rent is 14.89
yuan/square meter (excluding taxes, tax rate is 5%), and the annual rent increases by 5% compared with the
previous year (the rent will not rise after reaching the average market price of the plant, but the rent decline must
be adjusted according to the market conditions).
4. On December 20, 2021, as approved by the resolutions of the 15th session of the 10th BOD and the 12th session
of the 10th BOS of the company, it was agreed that the company would increase the daily related transactions
amount of no more than 80 million yuan (excluding taxes) for the transportation, warehousing, and loading and
142
CHANGHONG MEILING CO.,LTD. Annual Report 2021
unloading businesses provided by Changhong Minsheng that the company and its holding subsidiaries were
expected to accept in 2021. After this increase, the total amount of daily related transactions between the company
and its holding subsidiaries and Sichuan Changhong and its holding subsidiaries (excluding Changhong Huayi
Compressor Co., Ltd.) in 2021 was expected to not exceed 14,486 million yuan (excluding taxes), of which the
total amount of daily related transactions with Changhong Minsheng in 2021 was expected to not exceed 600
million yuan (excluding taxes).
5. On December 6, 2021 and December 23, 2021, as approved by the resolutions of the 13th session of the 10th
BOD, the 11th session of the 10th BOS, and the fourth extraordinary general meeting of shareholders in 2021, it
was agreed that the total amount of daily related transactions between the company and its holding subsidiaries
and the related parties in 2022 should not exceed 14.83 billion yuan (tax excluded); it was agreed that the
company and Sichuan Changhong Group Finance Co., Ltd. Would continue to carry out related transactions in
financial services such as deposits and loans in 2022.
Related searches for disclosure website of interim report with major related transaction concerned
Interim report Disclosure date Website for disclosure
Resolution Notice of the5th session 10th
of BOD (2021-028)
Resolution Notice of the 6th session of 10th BOS (2021-029)
Notice on the Termination of Assets Purchases and Related Transactions 2021-4-20 Juchao Website: http://Juchao
(2021-031) 2021-6-17 Website
Resolution Notice of First extraordinary general meeting of 2021
(2021-046)
Resolution Notice of the 9th session of 10th BOD (2021-050)
Resolution Notice of the 7th session of 10th BOS (2021-051) Juchao Website: http://Juchao
2021-7-13
Increase the forecast announcement of daily related party transactions Website
for year of 2021 (2021-053)
Resolution Notice of the 10th session of 10th BOD (2021-060)
Resolution Notice of the 8th session of 10th BOS (2021-061)
Juchao Website: http://Juchao
Notice on Lease Cooperation Agreement Singed between the Company 2021-8-18 Website
and Hefei Changhong Industrial Co.,Ltd and Related Transactions
(2021-065)
Resolution Notice of the 15th session of 10th BOD (2021-104)
Resolution Notice of the 12th session of 10th BOS (2021-105) Juchao Website: http://Juchao
2021-12-21
Increase the forecast announcement of daily related party transactions Website
for year of 2021 (2021-106)
Resolution Notice of the 13th session of 10th BOD (2021-091)
Resolution Notice of the 11th session of 10th BOS (2021-092)
Notice on Estimated Routine Related Transactions for year of 2022
(2021-094) 2021-12-7 Juchao Website: http://Juchao
Notice on Expected Continuing Related Transactions with Sichuan 2021-12-24 Website
Changhong Group Finance Company in 2022 (2021-095)
Resolution Notice of Fourth extraordinary general meeting of 2021
(2021-109)
XV. Significant contract and implementations
(i) Entrust, contract and leasing
1. Entrust
143
CHANGHONG MEILING CO.,LTD. Annual Report 2021
□Applicable √ Not applicable
No entrust in Period.
2. Contract
□Applicable √ Not applicable
No contract in Period.
144
CHANGHONG MEILING CO.,LTD. Annual Report 2021
3. Leasing
□Applicable √ Not applicable
No leasing in the period
(ii) Major guarantee
√ Applicable □ Not applicable
The guarantees provided by the company to the wholly-owned and holding subsidiaries are guarantees for supporting bank credits generated by its production and
operation. The guaranty style is the guarantee. The company and its subsidiaries did not provide guarantees to subjects outside the scope of consolidated statements.
The company and its holding subsidiaries had no overdue external guarantees, no external guarantees involving litigation, and no losses due to the award of the
guarantee. Up to 31 December 2021, the external guarantees of the Company and subsidiaries are as follows:
In 10 thousand yuan
Particulars about the external guarantee of the Company and subsidiaries (Barring the guarantee for subsidiaries)
Actual Counter Complete Guarantee
Name of the Company Related Announcement disclosure Guarantee Actual date Guarantee Collateral (if Guarantee
guarantee guarantee (if implementation for related
guaranteed date limit of happening type applicable) term
limit applicable) or not party
- - - - - - - - - - -
Total actual occurred external guarantee in report
Total approving external guarantee in report period (A1) 0 0
period (A2)
Total approved external guarantee at the end of report period Total actual balance of external guarantee at the
0 0
( A3) end of report period (A4)
Guarantee between the Company and the subsidiaries
Actual Counter Complete Guarantee
Name of the Company Related Announcement disclosure Guarantee Actual date Guarantee Collateral (if Guarantee
guarantee guarantee (if implementation for related
guaranteed date limit of happening type applicable) term
limit applicable) or not party
150,000.00 Joint
Notice No.: 2019-090 and 2020-3-5 5,000.00 liability Y 1-year Y N
Zhongshan Changhong 2020-002 released on 26 guaranty
Electric Co., Ltd. December 2019 and 11 January Joint
2020 respectively 2020-3-9 15,000.00 liability Y 1-year Y N
guaranty
145
CHANGHONG MEILING CO.,LTD. Annual Report 2021
Joint
2020-3-27 5,500.00 liability Y 1-year Y N
guaranty
Joint
2020-3-30 20,000.00 liability Y 1-year Y N
guaranty
Joint
2020-4-14 17,900.00 liability Y 1-year Y N
guaranty
Joint
2020-4-28 12,000.00 liability Y 1-year Y N
guaranty
Joint
2020-6-10 20,000.00 liability Y 9-months Y N
guaranty
Joint
2020-8-17 10,000.00 liability Y 1-year Y N
guaranty
Joint
2020-9-2 15,000.00 liability Y 1-year Y N
guaranty
Joint
2021-3-26 13,000.00 liability Y 1-year N N
guaranty
Joint
2021-3-29 18,000.00 liability Y 1-year N N
guaranty
Joint
Notice No.: 2020-097, 2020-098, 2021-3-30 20,000.00 liability Y 1-year N N
2020-101and 2020-107 released guaranty
140,000.00
on 11 December 2020 and 30 Joint
December respectively 2021-4-1 20,000.00 liability Y 11.5-months N N
guaranty
Joint
2021-4-6 9,000.00 liability Y 1-year N N
guaranty
Joint
2021-5-25 10,000.00 liability Y 1-year N N
guaranty
146
CHANGHONG MEILING CO.,LTD. Annual Report 2021
Joint
2021-7-20 5,000.00 liability Y 1-year N N
guaranty
Joint
2021-8-19 5,000.00 liability Y 1-year N N
guaranty
Joint
2021-8-27 15,000.00 liability Y 1-year N N
guaranty
Notice No.: 2021-091, 2021-092,
2021-096 and 2021-109 released
140,000.00 - - - - - - -
on 7 December 2021 and 24
December respectively
Joint
2020-4-2 3,000.00 liability Y 1-year Y N
guaranty
Joint
Notice No.: 2019-090 and 2020-4-2 4,000.00 liability Y 1-year Y N
2020-002 released on 26 guaranty
30,000.00
December 2019 and 11 January Joint
2020 respectively 2020-8-17 6,500.00 liability Y 1-year Y N
guaranty
Joint
2020-9-2 5,000.00 liability Y 1-year Y N
guaranty
Changhong Meiling Ridian Joint
Technology Co., Ltd. 2021-3-31 4,000.00 liability Y 1-year N N
guaranty
Joint
Notice No.: 2020-097, 2021-6-9 5,000.00 liability Y 6.8-months Y N
2020-098, 2020-101 and guaranty
2020-107 released on 11 30,000.00
December 2020 and 30 December Joint
respectively 2021-9-22 3,000.00 liability Y 1-year N N
guaranty
Joint
2021-10-19 4,000.00 liability Y 1-year N N
guaranty
Notice No.: 2021-091, 2021-092,
2021-096 and 2021-109 released 16,000.00 - - - - - - -
on 7 December 2021 and 24
147
CHANGHONG MEILING CO.,LTD. Annual Report 2021
December respectively
Notice No.: 2019-004,
Joint
2019-006 and 2019-012 released
14,000.00 2019-12-30 2,000.00 liability Y 11-months Y N
on 30 January 2019 and 23
guaranty
February respectively
Joint
2020-3-10 1,000.00 liability Y 1-year Y N
guaranty
Joint
2020-6-1 1,500.00 liability Y 9.5-months Y N
guaranty
Joint
2020-6-18 500.00 liability Y 8.6-months Y N
Notice No.: 2019-090, 2020-002, guaranty
2020-012, 2020-019 and
Joint
2020-036released on 26
18,000.00 2020-8-24 2,000.00 liability Y 1-year Y N
December 2019, 11 January 2020,
guaranty
28 March 2020 and 30 May
respectively Joint
Zhongke Meiling Cryogenic
2020-9-25 3,000.00 liability Y 1-year Y N
Technology Co., Ltd.
guaranty
Joint
2020-11-19 1,000.00 liability Y 1-year Y N
guaranty
Joint
2020-12-25 2,000.00 liability Y 1-year Y N
guaranty
Joint
Notice No.: 2020-097, 2021-5-24 5,000.00 liability Y 1-year N N
2020-098, 2020-101 and 26,000.00 guaranty
2020-107 released on 11
December 2020 and 30 December Joint
respectively 2021-9-26 6,000.00 liability Y 1-year N N
guaranty
Notice No.: 2021-091, 2021-092,
2021-096 and 2021-109 released
26,000.00 - - - - - - -
on 7 December 2021 and 24
December respectively
Notice No.: 2020-097, Joint
Sichuan Changhong
2020-098, 2020-101 and 100,000.00 2021-9-24 5,000.00 liability Y 1-year N N
Air-conditioner Co., Ltd.
2020-107 released on 11 guaranty
148
CHANGHONG MEILING CO.,LTD. Annual Report 2021
December 2020 and 30 December Joint
respectively 2021-12-7 15,000.00 liability Y 1-year N N
guaranty
Notice No.: 2021-091, 2021-092,
2021-096 and 2021-109 released
100,000.00 - - - - - - -
on 7 December 2021 and 24
December respectively
Joint
Notice No.: 2019-083, 2019-084 2019-12-23 2,103.51 liability Y 1-year Y N
and 2019-087 released on 7 guaranty
6,345
注1
December 2019 and 18 December Joint
Changhong RUBA Trade respectively 2020-12-16 1,831.50 liability Y 11.4-months Y N
guaranty
Company
Notice No.: 2020-097,
2020-098, 2020-101 and
2020-107 released on 11 5,920.38 注 2 - - - - - - -
December 2020 and 30 December
respectively
Notice No.: 2019-090 and
Joint
2020-002 released on 26
15,000.00 2020-4-9 10,000.00 liability Y 1-year Y N
December 2019 and 11 January
guaranty
2020 respectively
Notice No.: 2020-097,
2020-098, 2020-101 and Joint
Jiangxi Meiling Electric
2020-107 released on 11 10,000.00 2021-7-8 10,000.00 liability Y 1-year N N
Appliance Co., Ltd.
December 2020 and 30 December guaranty
respectively
Notice No.: 2021-091, 2021-092,
2021-096 and 2021-109 released
15,000.00 - - - - - - -
on 7 December 2021 and 24
December respectively
Notice No.: 2019-090 and
Joint
2020-002 released on 26
3,000.00 2020-3-20 1,000.00 liability Y 1-year Y N
December 2019 and 11 January
guaranty
2020 respectively
Hefei Meiling Nonferrous Notice No.: 2020-097,
Metal Products Co., Ltd. 2020-098, 2020-101 and
2020-107 released on 11 3,000.00 - - - - - - -
December 2020 and 30 December
respectively
Notice No.: 2021-091, 2021-092, 3,000.00 - - - - - - -
149
CHANGHONG MEILING CO.,LTD. Annual Report 2021
2021-096 and 2021-109 released
on 7 December 2021 and 24
December respectively
Notice No.: 2019-090 and
Joint
2020-002 released on 26
50000.00 2020-3-26 6,000.00 liability Y 1-year Y N
December 2019 and 11 January
guaranty
2020 respectively
Joint
Notice No.: 2020-097, 2020-12-30 10,000.00 liability Y 1-year Y N
2020-098, 2020-101 and guaranty
Hefei Meiling Group
2020-107 released on 11 50,000.00
Holdings Limited Joint
December 2020 and 30 December
respectively 2021-3-5 5,000.00 liability Y 1-year N N
guaranty
Notice No.: 2021-091, 2021-092,
2021-096 and 2021-109 released
40,000.00 - - - - - - -
on 7 December 2021 and 24
December respectively
Joint
2021-7-28 2,000.00 liability Y 1-year N N
guaranty
Joint
2021-7-29 5,000.00 liability Y 1-year N N
guaranty
Notice No.: 2021-008, 2021-009,
Joint
2021-011 and 2021-034 released
35,000.00 2021-8-30 5,000.00 liability Y 1-year N N
on 3 March 2021and 29 April
guaranty
Hefei Changhong Meiling respectively
Life Appliances Co., Ltd. Joint
2021-10-13 2,000.00 liability Y 1-year N N
guaranty
Joint
2021-12-9 4,000.00 liability Y 11-months N N
guaranty
Notice No.: 2021-091, 2021-092,
2021-096 and 2021-109 released
35,000.00 - - - - - - -
on 7 December 2021 and 24
December respectively
Total amount of approving guarantee for subsidiaries in report Total amount of actual occurred guarantee for
410,000.00 377,835.01
period (B1) subsidiaries in report period (B2)
Total amount of approved guarantee for subsidiaries at the end of 766,000.00 Total balance of actual guarantee for subsidiaries at 190,000.00
150
CHANGHONG MEILING CO.,LTD. Annual Report 2021
reporting period (B3) the end of reporting period (B4)
Guarantee of the subsidiaries for the subsidiaries
Actual Counter Complete Guarantee
Name of the Company Related Announcement disclosure Guarantee Actual date Guarantee Collateral (if Guarantee
guarantee guarantee (if implementation for related
guaranteed date limit of happening type applicable) term
limit applicable) or not party
Notice No.: 2021-013, 2021-014,
Joint and
2021-021 and 2021-034 released
6,000.00 2021-4-30 500 several - - 11-months N N
on 3 March 2021and 29 April
Anhui Tuoxing Technology liability
respectively
Co., Ltd. Notice No.: 2021-091, 2021-092,
2021-096 and 2021-109 released
5,000.00 - - - - - - - -
on 7 December 2021 and 24
December respectively
Notice No.: 2021-091, 2021-092,
Anhui Ling'an Medical 2021-096 and 2021-109 released
5,000.00 - - - - - - - -
Equipment Co., Ltd. on 7 December 2021 and 24
December respectively
Total amount of approving guarantee for subsidiaries in report Total amount of actual occurred guarantee for
16,000.00 500
period (C1) subsidiaries in report period (C2)
Total amount of approved guarantee for subsidiaries at the end of Total balance of actual guarantee for subsidiaries at
16,000.00 500
reporting period (C3) the end of reporting period (C4)
Total amount of guarantee of the Company (total of three abovementioned guarantee)
Total amount of approving guarantee in report period Total amount of actual occurred guarantee in report
426,000.00 378,335.01
(A1+B1+C1) period (A2+B2+C2)
Total amount of approved guarantee at the end of report period Total balance of actual guarantee at the end of
782,000.00 190,500.00
(A3+B3+C3) report period (A4+B4+C4)
Ratio of actual guarantee (A4+B4+C4) in net assets of the Company 39.38%
Including:
Amount of guarantee for shareholders, actual controller and its related parties (D) 0
The debts guarantee amount provided for the guaranteed parties whose assets-liability ratio
123,000.00
exceed 70% directly or indirectly (E)
Proportion of total amount of guarantee in net assets of the Company exceed 50% (F) 0
151
CHANGHONG MEILING CO.,LTD. Annual Report 2021
Total amount of the aforesaid three guarantees (D+E+F) 123,000.00
Explanations on possibly bearing joint and several liquidating responsibilities for undue
N/A
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 7.05 yuan 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 6.5782 yuan on November 31, 2020. For details, please refer to the
announcement No. 2020-101 disclosed by the company.
The above-mentioned guarantee objects are the wholly-owned and holding subsidiaries of the Company, and these wholly-owned and holding subsidiaries are in normal production and
operation, there are no overdue loans, and the guarantee risks are controllable. During the reporting period, the highest level of security the Company provided amounted to 4,260,000,000 yuan
by the approval, the actual amount of guarantee is 3,783,350,100 yuan. At the end of the reporting period, the practical guarantee balance amounted to 1,905,000,000 yuan, accounting for the
Company’s latest net assets ratio of 39.38%.
Explanation on guarantee with composite way: Not applicable
152
CHANGHONG MEILING CO.,LTD. Annual Report 2021
(iii) Entrust others to cash asset management
1. Trust financing
√ Applicable □ Not applicable
Trust financing in the period
In 10 thousand yuan
Impairment amount
for overdue
Type Capital resources Amount for entrust Undue balance Overdue amount
financial
management
Bank financing Idle raised funds 20,000 0 0 0
products Own idle funds 160,900 0 0 0
Total 180,900 0 0 0
Details of the single major amount, or high-risk trust investment with low security, poor fluidity
√ Applicable □ Not applicable
153
CHANGHONG MEILING CO.,LTD. Annual Report 2021
In 10 thousand yuan
Amount
Whet
of reserve
Antici Actual her Whether
Referen Actual for
Trustee pated collecte appro has Summary of the
Criteria ce gains/l devaluati
institution Truste Product Source Expiry incom d ved by entrust items and related
Amount Start date Capital investment purpose for fixing annual osses on of
(or name of e type type of funds date e (if gains/lo legal finance query index (if
reward rate of in withdrawi
trustee) applic sses in proce plan in applicable)
return period ng (if
able) period dure the future
applicable
(Y/N)
)
Juchao
Deposits embedded in financial
Hefei Website(www.cni
Principal-gu derivatives absorbed by banks are
Branch of Annualize
Bank of East Bank aranteed 10,000.00
Idle own
2021-1-15 2021-7-15
linked to exchange rate fluctuations so
d returns: 3.60% 181.00 181.00 181.00 N/A Y
Not nfo.com.cn)
with floating funds that depositors can get corresponding applicable
Asia (China) 3.60% (Notice No.:
income returns on the basis of assuming certain
Co., Ltd.
risks. 2021-003)
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 Juchao
Mianyang from derivative transactions. The raised Website(www.cni
Principal-gu
Branch of principal will be included in the internal Annualize
aranteed Idle own Not
Bank of Bank 20,000.00 2021-1-18 2021-4-19 fund of Bank of Communications for d returns: 3.15% 157.07 157.07 157.07 N/A Y nfo.com.cn)
with floating funds applicable
Communicat unified operation and management, and 3.15% (Notice No.:
income
ions Co., Ltd will be included in the payment scope
of deposit reserve fund and deposit 2021-003)
insurance. The embedded derivative
part of products will be linked to the
exchange rate, interest rate, commodity
and index, etc.
Anhui Bank of Communications operates the Juchao
Province Principal-gu
Branch of Bank aranteed Idle own funds raised by structured deposit Annualize Not
Website(www.cni
10,000.00 2021-1-19 2021-4-19 d returns: 3.15% 77.67 77.67 77.67 N/A Y
Bank of with floating funds products in a unified manner and 3.15% applicable nfo.com.cn)
Communicat income
manages them in accordance with the (Notice No.:
ions Co., Ltd
154
CHANGHONG MEILING CO.,LTD. Annual Report 2021
principle of separating basic deposits 2021-003)
from derivative transactions. The raised
principal will be included in the internal
fund of Bank of Communications for
unified operation and 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.
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 Juchao
Hefei the internal fund for unified operation Website(www.cni
Capital
Branch of and management of the Bank of China, Annualize
Bank of Bank guaranteed 10,000.00
Idle own
2021-1-18 2021-7-14 and will be included in the payment d returns: 3.63% 176.03 176.03 176.03 N/A Y
Not nfo.com.cn)
minimum funds applicable
China Co., scope of deposit reserve fund and 3.63% (Notice No.:
return type
Ltd. deposit insurance. The embedded
derivatives part of the product is 2021-003)
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
Hefei Principal-gu A structured deposit product, and its Website(www.cni
Annualize
Branch of Bank aranteed Idle own derivative products are partially pegged Not nfo.com.cn)
5,000.00 2021-1-20 2021-7-21 d returns: 3.50% 87.26 86.46 86.46 N/A Y
Bohai Bank with floating funds to the mid-rate of the USD-JPY applicable
3.50% (Notice No.:
Co., Ltd. income exchange rate.
2021-003)
Mianyang Capital Idle own The funds raised by this product will be Annualize Not
Juchao
Branch of Bank guaranteed 20,000.00
funds
2021-1-18 2021-4-20 operated uniformly by the Bank of d returns: 3.54% 178.45 178.45 178.45 N/A Y
applicable Website(www.cni
Bank of minimum China and managed in accordance with 3.54%
155
CHANGHONG MEILING CO.,LTD. Annual Report 2021
China Co., return type the principle of separating basic nfo.com.cn)
Ltd. deposits from derivative transactions.
(Notice No.:
The raised principal will be included in
the internal fund for unified operation 2021-003)
and management of the Bank of China,
and will be included in the payment
scope of deposit reserve fund and
deposit 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.
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 Juchao
Hefei it in financial derivative transactions Website(www.cni
Principal-gu
Branch of (including but not limited to options and Annualize
China Bank aranteed 5,000.00
Idle own
2021-1-15 2021-4-15 swaps and other derivatives)in domestic d returns: 3.00% 37.50 37.50 37.50 N/A Y
Not nfo.com.cn)
with floating funds applicable
Everbright or international financial markets with 3.00% (Notice No.:
income
Bank the upper limit of the income of the time
deposit, the sum of the profit and loss of 2021-004)
the financial derivative transaction
investment and the bank deposit interest
constitutes the income of the structured
deposit product.
Juchao
Chengdu Principal-gu A structured deposit product, and its Website(www.cni
Annualize
Branch of Bank aranteed Idle own derivative products are partially pegged Not nfo.com.cn)
10,000.00 2021-1-20 2021-7-21 d returns: 3.50% 174.52 172.91 172.91 N/A Y
Bohai Bank with floating funds to the mid-rate of the USD-JPY applicable
3.50% (Notice No.:
Co., Ltd. income exchange rate.
2021-004)
The principal part of this product is Juchao
incorporated into the internal fund for
Hefei Principal-gu unified operation and management of Annualize Website(www.cni
Changdong Bank aranteed Idle own Not
10,000.00 2021-1-26 2021-4-28 Industrial and Commercial Bank of d returns: 3.30% 83.18 53.82 53.82 N/A Y nfo.com.cn)
Branch of with floating funds China, and the income part is invested 3.30% applicable
ICBC income in derivative products linked to the (Notice No.:
exchange rate of US dollar against 2021-005)
Japanese yen, and the product income is
156
CHANGHONG MEILING CO.,LTD. Annual Report 2021
linked 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 a structured deposit
Juchao
Hefei product, and its derivative product is
Luyang Principal-gu Website(www.cni
linked to the spot exchange rate of the Annualize
Branch of Bank aranteed Idle own Not nfo.com.cn)
5,000.00 2021-5-6 2021-7-6 d returns: 3.20% 26.74 26.74 26.74 N/A Y
Bank of with floating funds Euro against the US dollar published on applicable
3.20% (Notice No.:
Hangzhou income
the Bloomberg page "BFIX" at 14:00
Co., Ltd. 2021-036)
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 Juchao
Mianyang
from derivative transactions. The raised Website(www.cni
Branch of Principal-gu
principal will be included in the internal Annualize
Bank of Bank aranteed Idle own Not nfo.com.cn)
10,000.00 2021-5-10 2021-7-1 fund of Bank of Communications for d returns: 3.31% 47.16 47.16 47.16 N/A Y
Communicat with floating funds applicable
unified operation and management, and 3.31% (Notice No.:
ions Co., income
will be included in the payment scope
Ltd. 2021-036)
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 structured
deposits funds in fixed deposit of the Juchao
Mianyang bank, at the same time, the bank invests Website(www.cni
Principal-gu
Branch of it in financial derivative transactions Annualize
China Bank aranteed 5,000.00
Idle own
2021-5-6 2021-7-9 (including but not limited to options and d returns: 3.30% 28.88 28.88 28.88 N/A Y
Not nfo.com.cn)
with floating funds applicable
Everbright swaps and other derivatives) in 3.30% (Notice No.:
income
Bank domestic or international financial
markets with the upper limit of the 2021-036)
income of the time deposit, the sum of
the profit and loss of the financial
derivative transaction investment and
157
CHANGHONG MEILING CO.,LTD. Annual Report 2021
the bank deposit interest constitutes the
income of the structured deposit
product.
Juchao
This product is a structured deposit Website(www.cni
Hefei Principal-gu
product, the derivative product of which Annualize
Branch of Bank aranteed Idle own Not nfo.com.cn)
5,000.00 2021-5-8 2021-7-7 is linked to the morning benchmark d returns: 3.28% 26.96 26.96 26.96 N/A Y
Industrial with floating funds applicable
price of Shanghai Gold Exchange on the 3.28% (Notice No.:
Bank income
observation date.
2021-037)
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 Juchao
Hefei the internal fund for unified operation Website(www.cni
Capital
Branch of and management of the Bank of China, Annualize
Bank of Bank guaranteed 5,000.00
Idle own
2021-5-10 2021-6-22 and will be included in the payment d returns: 3.29% 19.38 19.38 19.38 N/A Y
Not nfo.com.cn)
minimum funds applicable
China Co., scope of deposit reserve fund and 3.29% (Notice No.:
return type
Ltd. deposit insurance. The embedded
derivatives part of the product is 2021-037)
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
Mianyang Principal-gu This product is a structured deposit Website(www.cni
Idle Annualize
Branch of Bank aranteed Not
12,000.00 fund 2021-5-27 2021-8-27 product, the structured derivatives of d returns: 3.40% 102.84 102.84 102.84 N/A Y nfo.com.cn)
Ping An with floating applicable
raised which are linked to the CSI 500 index. 3.40% (Notice No.:
Bank income
2021-041)
Bank of Communications operates the
funds raised by structured deposit Juchao
Zhongshan products in a unified manner and Website(www.cni
Principal-gu
Branch of manages them in accordance with the Annualize
Bank of Bank aranteed 2,400.00
Idle own
2021-7-1 2021-10-8 principle of separating basic deposits d returns: 3.20% 20.83 20.83 20.83 N/A Y
Not nfo.com.cn)
with floating funds applicable
Communicat from derivative transactions. The raised 3.20% (Notice No.:
income
ions principal will be included in the internal
fund of Bank of Communications for 2021-048)
unified operation and management, and
158
CHANGHONG MEILING CO.,LTD. Annual Report 2021
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.
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 Juchao
Zhongshan from derivative transactions. The raised Website(www.cni
Principal-gu
Branch of principal will be included in the internal Annualize
aranteed Idle own Not
Bank of Bank 1,500.00 2021-8-25 2021-12-1 fund of Bank of Communications for d returns: 3.17% 12.77 12.77 12.77 N/A Y nfo.com.cn)
with floating funds applicable
Communicat unified operation and management, and 3.17% (Notice No.:
income
ions will be included in the payment scope
of deposit reserve fund and deposit 2021-071)
insurance. The embedded derivative
part of products will be linked to the
exchange rate, interest rate, commodity
and index, etc.
Juchao
Hefei
The structured deposit product, the Website(www.cni
Luyang Principal-gu
derivative products are partially linked Annualize
Branch of Bank aranteed Idle own Not nfo.com.cn)
3,000.00 2021-8-26 2021-12-4 to the spot rate published on Bloomberg d returns: 3.30% 27.12 27.12 27.12 N/A Y
Bank of with floating funds applicable
page “BFIX” at 14:00 BST on the 3.3% (Notice No.:
Hangzhou income
observation day
Co., Ltd. 2021-071)
Juchao
A deposit embedded in financial
Hefei Website(www.cni
Principal-gu derivative products taken by banks, the
Branch of Annualize
Bank of East Bank aranteed 6,000.00
Idle own
2021-8-25
2021-11-2 products that allows depositors to earn a
d returns: 3.35% 51.93 51.93 51.93 N/A Y
Not nfo.com.cn)
with floating funds 6 corresponding return while bearing a applicable
Asia (China) 3.35% (Notice No.:
income certain level of risks by linking it to the
Co., Ltd.
exchange rate fluctuations 2021-071)
The fund raised by the product is Juchao
Hefei operated by Bank of China and
Capital managed in accordance with the Website(www.cni
Branch of Annualize
Bank of Bank guaranteed 6,000.00
Idle own
2021-8-26
2021-11-2 principle of separating the underlying
d returns: 3.40% 50.30 50.30 50.30 N/A Y
Not nfo.com.cn)
minimum funds 4 deposit from the derivative transactions. applicable
China Co., 3.4% (Notice No.:
return type Principal of the proceeds is included in
Ltd.
the unified operation and management 2021-072)
of Bank of China’s internal funds, and
159
CHANGHONG MEILING CO.,LTD. Annual Report 2021
included in the payment scope of
deposit reserves and deposit insurance
premiums. The embedded derivative
invested in derivative markets such as
exchange rates, interest rates,
commodities and indices, and the
ultimate performance of the product is
linked to the derivatives.
Principal of the structured deposit is Juchao
Hefei included in the unified operation and
Branch of Principal-gu management of Guangdong Website(www.cni
Annualize
China Bank aranteed Idle own 2021-11-3 Development Bank, investor’s returns Not nfo.com.cn)
5,000.00 2021-8-30 d returns: 3.30% 41.59 41.59 41.59 N/A Y
Guangfa with floating funds 0 from the structured deposit depend on applicable
3.3% (Notice No.:
Bank Co., income the performance of the Shanghai Gold
Ltd. 2112 contract during the observation 2021-073)
period
Juchao
A deposit embedded in financial
Hefei Website(www.cni
Principal-gu derivative products taken by banks, the
Branch of Idle Annualize
Bank of East Bank aranteed 3,000.00 fund 2021-9-23
2021-12-2 products that allows depositors to earn a
d returns: 3.40% 25.78 25.78 25.78 N/A Y
Not nfo.com.cn)
with floating 3 corresponding return while bearing a applicable
Asia (China) raised 3.4% (Notice No.:
income certain level of risks by linking it to the
Co., Ltd.
exchange rate fluctuations 2021-076)
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 Juchao
Hefei the internal fund for unified operation Website(www.cni
Capital
Branch of Idle and management of the Bank of China, Annualize
guaranteed 2021-12-2 Not
Bank of Bank 3,000.00 fund 2021-9-22 and will be included in the payment d returns: 3.41% 25.79 25.79 25.79 N/A Y nfo.com.cn)
minimum 3 applicable
China Co., raised scope of deposit reserve fund and 3.41% (Notice No.:
return type
Ltd. deposit insurance. The embedded
derivatives part of the product is 2021-076)
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.
Hefei Principal-gu Idle Annualize Juchao
Bank aranteed 2021-12-2 Principal of the structured deposit is Not
Branch of 2,000.00 fund 2021-9-24 included in the unified fund operation d returns: 3.30% 16.27 16.27 16.27 N/A Y
3 applicable Website(www.cni
China with floating raised and management of Guangdong 3.3%
160
CHANGHONG MEILING CO.,LTD. Annual Report 2021
Guangfa income Development Bank, returns on the nfo.com.cn)
Bank Co., structured deposit from investors
(Notice No.:
Ltd. depend on the performance of gold
during the observation period 2021-076)
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 Juchao
Zhongshan from derivative transactions. The raised Website(www.cni
Principal-gu
Branch of principal will be included in the internal Annualize
Bank of Bank aranteed 3,000.00
Idle own
2021-9-27
2021-12-3
fund of Bank of Communications for d returns: 3.17% 24.49 24.49 24.49 N/A Y
Not nfo.com.cn)
with floating funds 0 applicable
Communicat unified operation and management, and 3.17% (Notice No.:
income
ions will be included in the payment scope
of deposit reserve fund and deposit 2021-077)
insurance. The embedded derivative
part of products will be linked to the
exchange rate, interest rate, commodity
and index, etc.
Principal of the structured deposit is
included in on-balance sheet accounting
and managed in accordance with the
deposit, and included in the payment Juchao
Hefei
range payment of deposit reserves and
Science and Website(www.cni
Principal-gu deposit insurance premiums, relevant
Technology Annualize
Sub-branch Bank aranteed 1,000.00
Idle own
2021-9-30
2021-12-3 assets are capitalized and provided for
d returns: 3.45% 8.70 8.70 8.70 N/A Y
Not nfo.com.cn)
with floating funds 1 in line with the relevant regulations of applicable
of Bank of 3.45% (Notice No.:
income banking supervision institutions of the
Dongguan
State Council. The ultimate actual 2021-078)
Co., Ltd.
return of structured deposits depends on
the performance of underlying markets
and is influenced by a variety of factors
in the market.
This product is a structured deposit
Juchao
Hefei product, and its derivative product is
Luyang Principal-gu Website(www.cni
linked to the spot exchange rate of the Annualize
Branch of Bank aranteed Idle own 2021-12-3 Not nfo.com.cn)
1,000.00 2021-9-30 d returns: 3.25% 8.10 8.10 8.10 N/A Y
Bank of with floating funds 0 Euro against the US dollar published on applicable
3.25% (Notice No.:
Hangzhou income
the Bloomberg page "BFIX" at 14:00
Co., Ltd. 2021-078)
Beijing time on the observation date.
Hefei Bank Principal-gu 1,000.00 Idle own 2021-9-28 2021-12-2 This product is an embedded financial Annualize 3.15% 7.88 7.88 7.88 N/A Y Not Juchao
161
CHANGHONG MEILING CO.,LTD. Annual Report 2021
Branch of aranteed funds 8 derivatives of RMB structured deposits, d returns: applicable Website(www.cni
China with floating the bank invests the raised structured 3.15%
nfo.com.cn)
Everbright income deposits funds in fixed deposit of the
Bank bank, at the same time, the bank invests (Notice No.:
it in financial derivative transactions
2021-078)
(including but not limited to options and
swaps and other derivatives)in domestic
or international financial 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.
Principal of the structured deposit is Juchao
Zhongshan
included in the unified operation and Website(www.cni
Branch of Principal-gu
management of Guangdong Annualize
China Bank aranteed Idle own 2021-12-2 Not nfo.com.cn)
1,000.00 2021-11-2 Development Bank, investor’s returns d returns: 3.40% 5.12 5.12 5.12 N/A Y
Guangfa with floating funds 7 applicable
from the structured deposit depend on 3.4% (Notice No.:
Bank Co., income
the performance of CSI 500 during the
Ltd. 2021-088)
observation period
180,900.0 1,731. 1,699.
Total -- -- -- -- -- -- -- -- -- -- --
0 30 53
Entrust financial expected to be unable to recover the principal or impairment might be occurred
□ Applicable √ Not applicable
2. Entrust loans
□ Applicable √ Not applicable
No entrust loans in the period.
162
CHANGHONG MEILING CO.,LTD. Annual Report 2021
(iv) Other material contracts
□ Applicable √ Not applicable
No other material contracts in the period.
XVI. 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 Juchao Website (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 Juchao Website (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 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 Juchao Website
(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.
4. 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 Juchao Website (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.
5. 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 Juchao
163
CHANGHONG MEILING CO.,LTD. Annual Report 2021
Website (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.
6. 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 Juchao Website
(www.cninfo.com.cn) that the Company disclosed in the form of announcement (Announcement No. 2021-013)
on 31 March 2021.
7. The resolution of the 6thsession of the 10th BOD 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 to300 million yuan, and agreed that the company and its 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 Juchao Website
(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.
8. The 6th session of the 10th BOD 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 Juchao Website (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.
9. 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 10th BOS. Found more on appointed media “Securities Times”,
“China Securities Journal”, “Hong Kong Commercial Daily” and Juchao Website (www.cninfo.com.cn) that the
Company disclosed in the form of announcement (Announcement No. 2021-023) on 31 March 2021.
164
CHANGHONG MEILING CO.,LTD. Annual Report 2021
10. 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 Juchao Website (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.
11. The 7thsession of the 10th BOD, the 6thsession of the 10th BOS 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 and the related transactions. Found
more on appointed media “Securities Times”, “China Securities Journal”, “Hong Kong Commercial Daily” and
Juchao Website (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.
12. The resolution of the 8th session of the 10th BOD 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 Juchao Website (www.cninfo.com.cn) that the Company disclosed in the form of
announcement (Announcement No. 2021-038 and 2021-039) on 27 May 2021.
13. During the reporting period, the company and its holding subsidiaries received various government subsidies
totaling 47,129,394.72 yuan. The company disclosed the details in the form of announcement (Announcement No.
2021-047) on the designated information disclosure media, such as Securities Times, China Securities Journal,
Hong Kong Commercial Daily and Juchao Website (www.cninfo.com.cn), on July 1, 2021.
14. As approved by the resolutions of the 9th session of the 10th BOD, the 7th session of the 10th BOS and the
second extraordinary general meeting of shareholders in 2021, it was agreed that all directors, supervisors and
senior executives of the company would purchase liability insurance. For details, the company disclosed on the
designated information disclosure media such as Securities Times, China Securities Journal, Hong Kong
Commercial Daily and Juchao Website (www.cninfo.com.cn), on July 13, 2021 and July 29, 2021 in the form of
announcement (Announcements No. 2021-050, No. 2021-051, No. 2021-052, No. 2021-058).
15. As approved by the resolution of the 10th session of the 10th BOD of the company, it was agreed that the
company would invest 15,052,900 yuan to rebuild the substation in the refrigerator park of the Hefei
manufacturing base, thus providing a strong guarantee for the sustainable development of the company's
production and operation. The company disclosed the details in the form of announcement (Announcement No.
2021-060) on the designated information disclosure media, such as Securities Times, China Securities Journal,
Hong Kong Commercial Daily and Juchao Website (www.cninfo.com.cn), on August 18, 2021.
16. As approved by the resolution of the 10th session of the 10th BOD of the company, it was agreed that the
165
CHANGHONG MEILING CO.,LTD. Annual Report 2021
company would invest an estimate of 30,913,100 yuan in the relocation and expansion of the extrusion line at the
Hefei refrigerator manufacturing base, thereby ensuring the improvement of the company's manufacturing
capacity and production and operation needs. The company disclosed the details in the form of announcement
(Announcement No. 2021-060) on the designated information disclosure media, such as Securities Times, China
Securities Journal, Hong Kong Commercial Daily and Juchao Website (www.cninfo.com.cn), on August 18, 2021.
17. As approved by the resolution of the 10th session of the 10th BOD of the company, it was agreed that the
company would hand over the idle land use rights and buildings located at Area A, Longgang Industrial Zone,
Yaohai District, Hefei City to the government for expropriation. The total area of land use rights expropriated this
time was 16,370 square meters (about 24.56 mu), with a total building area of 5,728.92 square meters, and the
total expropriation compensation was about 18.9243 million yuan. The company disclosed the details in the form
of announcement (Announcement No. 2021-060 & No. 2021-064) on the designated information disclosure media,
such as Securities Times, China Securities Journal, Hong Kong Commercial Daily and Juchao Website
(www.cninfo.com.cn), on August 18, 2021.
18. As approved by the resolution of the 12th session of the 10th BOD of the company, it was agreed to appoint Ms.
Pan Haiyun as the company's securities affairs representative to assist the secretary of the board in performing
duties. The company disclosed the details in the form of announcement (Announcement No. 2021-081 & No.
2021-084) on the designated information disclosure media, such as Securities Times, China Securities Journal,
Hong Kong Commercial Daily and Juchao Website (www.cninfo.com.cn), on October 20, 2021.
19. As approved by the resolutions of the 12th session of the 10th BOD and the fourth extraordinary general
meeting of shareholders in 2021, it was agreed that the company would apply for a special credit line of bill pool
of up to 500 million yuan from Hefei Branch of Hua Xia Bank Co., Ltd., and apply for a special credit line of
bill pool of up to 600 million yuan from Hefei Branch of Bank of Hangzhou Co., Ltd., and apply for a special
credit line of bill pool of up to 1 billion yuan from Hefei Branch of Bank of Communications Co., Ltd., the term
of credit is one year, and the credit varieties are mainly used for the special business of the bill pool, adopting bill
pledge method. The company disclosed the details in the form of announcement (Announcement No. 2021-081,
No. 2021-085, and No. 2021-109) on the designated information disclosure media, such as Securities Times,
China Securities Journal, Hong Kong Commercial Daily and Juchao Website (www.cninfo.com.cn), on October
20, 202 and December 24, 2021.
20. As approved by the resolutions of the 13th session of the 10th BOD and the fourth extraordinary general
meeting of shareholders in 2021, in order to maintain the company's value and shareholders' rights and interests,
and in light of the company's actual situation and business development needs, it was agreed that the company
would revise the subject of soliciting voting rights in the Articles of Association and the Rules of Procedure for
General Meeting of Shareholders. The company disclosed the details in the form of announcement
(Announcement No. 2021-091, No. 2021-093, No. 2021-0109) on the designated information disclosure media,
such as Securities Times, China Securities Journal, Hong Kong Commercial Daily and Juchao Website
(www.cninfo.com.cn), on December 7, 2021 and December 24, 2021.
21. As approved by the resolutions of the 13th session of the 10th BOD, the 11th session of the 10th BOS and the
166
CHANGHONG MEILING CO.,LTD. Annual Report 2021
fourth extraordinary general meeting of shareholders in 2021, it was agreed that the company would provide
credit guarantees of 3.85 billion yuan for its wholly-owned and holding subsidiaries in 2022. For the newly
increased guarantee amount in 2022 and the amount for renewal in 2022, the guarantee period is one year. The
company disclosed the details in the form of announcement (Announcement No. 2021-091, No. 2021-092, No.
2021-96, No. 2021-109) on the designated information disclosure media, such as Securities Times, China
Securities Journal, Hong Kong Commercial Daily and Juchao Website (www.cninfo.com.cn), on December 7,
2021 and December 24, 2021.
22. As approved by the resolutions of the 13th session of the 10th BOD, the 11th session of the 10th BOS and the
fourth extraordinary general meeting of shareholders in 2021, it was agreed that the company and its subsidiaries
would use their own idle funds not exceeding 1.3 billion yuan (The quota can be used on a rolling basis) to invest
in the high-security, good-liquidity, low-risk, and stable bank financial products of product maturity within one
year, the authorization period is valid within one year from the date of approval by the company’s general meeting
of shareholders. The company disclosed the details in the form of announcement (Announcement No. 2021-091,
No. 2021-092, No. 2021-97, No. 2021-109) on the designated information disclosure media, such as Securities
Times, China Securities Journal, Hong Kong Commercial Daily and Juchao Website (www.cninfo.com.cn), on
December 7, 2021 and December 24, 2021.
23. As approved by the 13th session of the 10th BOD of the company and the fourth extraordinary general meeting
of shareholders in 2021, it was agreed that the company and its subsidiary Zhongke Meiling would carry out the
asset pool business of no more than 529 million yuan with the Hefei Branch of China Zheshang Bank Co., Ltd., of
which the Company's quota is not more than 500 million yuan, and the quota of Zhongke Meiling is not more than
29 million yuan. The company disclosed the details in the form of announcement (Announcement No. 2021-091,
No. 2021-092, No. 2021-98, No. 2021-109) on the designated information disclosure media, such as Securities
Times, China Securities Journal, Hong Kong Commercial Daily and Juchao Website (www.cninfo.com.cn), on
December 7, 2021 and December 24, 2021.
24. On December 10, 2021, Mr. Chen Ye, the former director of the company, applied for his resignation as a
director of the 10th BOD and a committee member of the strategy committee of the Company due to personal
reasons. At the same time, as approved by the company’s 14th session of the 10th BOD and the fourth
extraordinary general meeting of shareholders in 2021, it was agreed to elect Mr. Zhao Qilin as a non-independent
director candidate of the 10th BOD of the company, and his term of office is the same as that of the 10th BOD of
the company. The company disclosed the details in the form of announcement (Announcement No. 2021-091, No.
2021-092, No. 2021-100, No. 2021-109) on the designated information disclosure media, such as Securities Times,
China Securities Journal, Hong Kong Commercial Daily and Juchao Website (www.cninfo.com.cn), on December
7, 2021, December 13, 2021 and December 24, 2021.
XVII. 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
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CHANGHONG MEILING CO.,LTD. Annual Report 2021
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 Juchao Website (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 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 Juchao Website (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.
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 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 Juchao Website (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.
4. The resolution of the 8thsession of the 10th BOD 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 Juchao Website (www.cninfo.com.cn)
that the Company disclosed in the form of announcement (Announcement No. 2021-038) on 27 May 2021.
5. As approved by the 15th session of the 10th BOD and the 12th session of the 10th BOS of the company, it was
agreed that the affiliated company Zhiyijia Company would provide a certain proportion of performance bond for
the guarantee provided by its distributors to Sichuan Changhong, adopting cash pledge method, the amount does
not exceed 200 million yuan, and the performance guarantee period is one year, the specific period is subject to
the guarantee contract. The company disclosed the details in the form of announcement (Announcement No.
2021-104, No. 2021-105, No. 2021-107) on the designated information disclosure media, such as Securities Times,
China Securities Journal, Hong Kong Commercial Daily and Juchao Website (www.cninfo.com.cn), on December
21, 2021.
168
CHANGHONG MEILING CO.,LTD. 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
Bonus transfer
Amount Proportion shares Others Subtotal Amount Proportion
shares into
issued
share
capital
I. Restricted
10,472,676 1.00% 0 0 0 -2,029,754 -2,029,754 8,442,922 0.81%
shares
1. State-owned
0 0.00% 0 0 0 0 0 0 0.00%
shares
2. State-owned
legal person’s 1,653,735 0.16% 0 0 0 +112,534 +112,534 1,766,269 0.17%
shares
3. Other domestic
7,551,521 0.72% 0 0 0 -2,142,288 -2,142,288 5,409,233 0.52%
shares
Including:
Domestic legal 3,978,329 0.38% 0 0 0 -93,778 -93,778 3,884,551 0.37%
person’s shares
Domestic
natural person’s 3,573,192 0.34% 0 0 0 -2,048,510 -2,048,510 1,524,682 0.15%
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 person’s 1,267,420 0.12% 0 0 0 0 0 1,267,420 0.12%
shares
II. Unrestricted
1,034,125,205 99.00% 0 0 0 +2,029,754 +2,029,754 1,036,154,959 99.19%
shares
1. RMB ordinary
872,528,625 83.53% 0 0 0 +2,029,754 +2,029,754 874,558,379 83.72%
shares
2. Domestically
listed foreign 161,596,580 15.47% 0 0 0 0 0 161,596,580 15.47%
shares
3. Overseas listed
0 0.00% 0 0 0 0 0 0 0.00%
foreign 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
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CHANGHONG MEILING CO.,LTD. Annual Report 2021
(1) 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 9th BOD of the company expired for six months, and
the restrictions on sales of total 2,029,754 shares held by them were lifted.
(2) On November 23, 2021, there are 4 shareholders with restricted shares repaid the consideration shares paid in
advance and rights & interests distributed to Meiling Group during the share merger reform, amount of 225,066
shares in total, account for 0.0215% of the total share capital of the Company
At the same time, in August 2008, according to the "Reply on Issues Concerning the Free Transfer of Shares Held
by State-owned Shareholders of Hefei Meiling Co., Ltd." issued by the State-owned Assets Supervision and
Administration Commission of the State Council, the 34,359,384 state shares held by Meiling Group (including
the 3,360,329 state shares advanced by Meiling Group on behalf of other non-tradable shareholders during the
company's share reform) should be transferred to Hefei Xingtai Holdings Group Co., Ltd. (hereinafter referred to
as "Xingtai Holdings") for free. In December 2015, according to the "Reply on Issues Concerning the Free
Transfer of Shares Held by State-owned Shareholders of Hefei Meiling Co., Ltd." issued by the State-owned
Assets Supervision and Administration Commission of the State Council, the 49,477,513 state shares held by
Xingtai Holdings (including 1,654,112 shares prepaid on behalf of shareholders of other temporarily non-tradable
shares in the reform of non-tradable shares of the company that have not been recovered) should be transferred to
Hefei Industry Investment Holding (Group) Co., Ltd. (hereinafter referred to as "Hefei Industry Investment
Group") free of charge. Therefore, the shares advanced by Meiling Group on behalf of other shareholders of
non-tradable shares in the company's share structure reform and the corresponding distribution rights should be
transferred to Hefei Industry Investment Group free of charge.
2. Approval of share changed
□ Applicable √ Not applicable
3. Ownership transfer of share changed
√ Applicable □ Not applicable
During the reporting period, four shareholders with restricted shares, i.e. the People's Insurance Company (Group)
of China, China Life Insurance (Group) Company Ltd., Magang Community Committee of Hefei Longgang
Comprehensive Economic Development Zone, and Zhang Yong, repaid to Meiling Group 225,066 shares of
consideration for share reform that Meiling Group paid in advance in the reform of non-tradable shares of the
Company. On November 23, 2021, the procedures for repayment of the shares paid in advance for the
aforementioned reform of non-tradable shares were completed.
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CHANGHONG MEILING CO.,LTD. Annual Report 2021
4. 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
5. 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
Restricted
Opening Shares shares Ending
Sharehol increased Restricted
shares released in shares Date for released
ders in reasons
restricted Period restricted
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
Share Reduction of Shareholders, Directors, Supervisors and Senior
Zhang lockup in Managers of Listed Companies at Shenzhen Stock Exchange,
363,525 0 363,525 0
Xiaolong senior
executives the original term of office should expire on September 12, 2020.
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
Share Reduction of Shareholders, Directors, Supervisors and Senior
lockup in Managers of Listed Companies at Shenzhen Stock Exchange,
Liao Tao 528,724 0 528,724 0
senior
executives the original term of office should expire on September 12, 2020.
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
Share Reduction of Shareholders, Directors, Supervisors and Senior
Teng
lockup in Managers of Listed Companies at Shenzhen Stock Exchange,
Guangsh 66,150 0 66,150
senior
eng
executives the original term of office should expire on September 12, 2020.
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.
Share On April 25, 2019, due to job transfer, Li Wei no longer served
Li Wei 1,071,355 0 1,071,355 0
lockup in
171
CHANGHONG MEILING CO.,LTD. Annual Report 2021
senior as chairman of the Company. According to the relevant
executives
provisions of the Implementation Rules for Share Reduction of
Shareholders, Directors, Supervisors and Senior Managers of
Listed Companies at Shenzhen Stock Exchange, the original
term of office should expire on September 12, 2020. 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 0 2,029,754 0 -- --
II. Securities issuance and listing
(i) Security offering in reporting period (Not including preferred stock)
□ Applicable √ Not applicable
(ii) Explanation on changes of total shares, shareholders structure and assets & liability structures
□ Applicable √ Not applicable
(iii) Current shares held by internal staffs
□ Applicable √ Not applicable
III. Particulars about shareholder and actual controller of the Company
(i) Amount of shareholders of the Company and particulars about shares holding
In Share
Total preference
Total common Total preference
Total shareholders with voting
shareholders at shareholders with voting
shareholders rights recovered at end of
64,872 end of last month 62,154 rights recovered at end of 0 0
at end of the last month before annual
before annual reporting period (if
Period report disclosed (if
report disclosed applicable)
applicable)
Particulars about shares held above 5% by shareholders or top 10 shares holding
Information
of shares
Total Amount pledged,
Proportion shareholders Changes in of Amount of
Nature of tagged or
Full name of Shareholders of shares at the end report restricted un-restricted
shareholder
held of report period shares shares held frozen
period held
State
of Amount
share
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 legal
2.59% 27,077,797 0 0 27,077,797 - -
LIMITED person
Foreign legal
CAOSHENGCHUN 1.41% 14,766,086 0 0 14,766,086 - -
person
Ma Guobin Domestic nature 1.06% 11,106,500 -2,124,554 0 11,106,500 - -
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CHANGHONG MEILING CO.,LTD. Annual Report 2021
person
Caitong Fund- Ningbo Bank-Haitong Domestic
Xingtai (Anhui) Emerging Industry non-state-owned 1.03% 10,733,452 0 0 10,733,452 - -
Investment Fund (Limited Partnership) legal person
Foreign legal
Philip Securities (H.K.) Co., Ltd. 0.60% 6,296,913 0 0 6,296,913 - -
person
Domestic nature
Chen Qin 0.42% 4,383,888 +3,483,878 0 4,383,888 - -
person
Domestic nature
Wang Yumei 0.40% 4,175,300 +4,175,300 0 4,175,300 - -
person
Domestic nature
Wang Xinzhong 0.38% 3,934,940 +3,934,940 0 3,934,940 - -
person
Strategy investors or general legal person becomes top 10 shareholders due to rights issued (if
Not applicable
applicable)
Among the above shareholders, CHANGHONG (HK) TRADING LIMITED (hereinafter referred to as
Hong Kong Changhong) is the wholly-owned subsidiary of Sichuan Changhong Electric Co., Ltd.; except
the shares of the Company directly held by Hong Kong Changhong, 6,296,913 shares of B-stock are also
held through Phillip Securities (Hong Kong) Co., Ltd., the foregoing shareholders constitute persons of
uniform action. There existed no associated relationship or belong to the concerted actors as specified in the
Explanation on Measures for the Administration of Information Disclosure of Shareholder Equity Changes of Listed
associated relationship Companies among Sichuan Changhong, Hong Kong Changhong and other top 7 shareholders （Excluding
among the aforesaid
shareholders Phillip Securities (Hong Kong) Co., Ltd.); “Caitong Fund- Ningbo Bank-Haitong Xingtai (Anhui)
Emerging Industry Investment Fund (Limited Partnership)” refers to the products of Caitong Fund
Management Company subscribe for privately placement of 2016; The company neither knows whether
there is any association among other shareholders, nor knows whether other shareholders belong to the
persons acting in concert that is stipulated in the “Administrative Measures on Information Disclosure of
Changes in Shareholding of Listed Companies”.
Description of the above shareholders in relation to delegate/entrusted voting rights and
Not applicable
abstention from voting rights.
Special note on the As of December 31, 2021, the Company has repurchased a total of 14,288,639 shares of the Company
repurchase account through repurchase specific account for repurchase by means of centralized competitive bidding,
among the top 10 representing 1.3679% of the total shares capital of the Company. Cancellation of the aforementioned shares
shareholders (if are being completed in Shenzhen Branch of CSDC on March 2, 2022
applicable)
Particular about top ten shareholders with un-restrict shares held
Amount of Type of shares
unrestricted
Shareholders’ name
shares held at Type Amount
end of Period
RMB ordinary
Sichuan Changhong Electric Co., Ltd. 248,457,724 248,457,724
shares
RMB ordinary
Hefei Industry Investment Holding (Group) Co., Ltd. 47,823,401 47,823,401
shares
Domestically
CHANGHONG (HK) TRADING LIMITED 27,077,797 listed foreign 27,077,797
shares
Domestically
CAO SHENGCHUN 14,766,086 listed foreign 14,766,086
shares
RMB ordinary
Ma Guobin 11,106,500 11,106,500
shares
Caitong Fund- Ningbo Bank-Haitong Xingtai (Anhui) Emerging Industry RMB ordinary
10,733,452 10,733,452
Investment Fund (Limited Partnership) shares
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CHANGHONG MEILING CO.,LTD. Annual Report 2021
Domestically
Philip Securities (H.K.) Co., Ltd. 6,296,913 listed foreign 6,296,913
shares
RMB ordinary
Chen Qin 4,383,888 4,383,888
shares
RMB ordinary
Wang Yumei 4,175,300 4,175,300
shares
RMB ordinary
Wang Xinzhong 3,934,940 3,934,940
shares
Expiation on associated relationship or
consistent actors within the top 10
Found more in “Particulars about shares held above 5% by shareholders or top 10 shares
un-restrict shareholders and between top
holding”
10 un-restrict shareholders and top 10
shareholders
As of December 31, 2021, among the top 10 common shareholders, Ma Guobin holds
10,871,600 shares of the Company through customer credit trading secured account of
Explanation on top ten common
Founder Securities Co., Ltd., and 234,900 shares hold through common securities
shareholders involving margin business (if
account, thus 11,106,500 shares of the Company are held in total. The shareholder-Wang
applicable)
Xinzhong holds 3,934,940 shares of the Company through customer credit trading
secured account of Sinolink Securities Co., Ltd.
Note 1: At end of the reporting period, the person acting in concert with controlling shareholder Sichuan Changhong--
CHANGHONG (HK) TRADING LIMITED, holds B-stock of the Company as 33,374,710 shares, among which, 6,296,913 shares
are held through Philip Securities (H.K.) Co., Ltd. by CHANGHONG (HK) TRADING LIMITED
Note 2: In the above table, "Particulars about shares held above 5% by shareholders or top 10 shares holding" is subject to the data on
stock transfer books provided by China Securities Depository and Clearing Corporation Limited Shenzhen Branch
Whether the top ten ordinary shareholders of the company and the top 10 ordinary shareholders of unrestricted
conditions have made the repurchase transactions as agreed during the reporting period.
□Yes √ No
The top ten ordinary shareholders of the company and the top 10 ordinary shareholders of unrestricted conditions
have not made the repurchase transactions as agreed during the reporting period.
(ii) Controlling shareholder of the Company
1. Nature of controlling shareholders: local state-owned holding
2. Type of controlling shareholders: legal person
Controlling Legal
Dated Organization
shareholders’ rep./person in Main business
founded code
name charge of unit
Manufactures, sales and maintenance of household appliance, automotive electrical
appliance, Electronic products and spare parts, communications equipment,
lighting equipment, household products, computer and other Electronic equipment,
Sichuan
specialized equipment of Electronic and Electronic, Electronic machinery and
Changhong 91510700205
Zhao Yong 1993-4-8 equipment, series products of batteries, Electronic medicine products, Electronic
Electric Co., 412308D
equipment, mechanical equipment, Refrigeration equipment and accessories digital
Ltd.
monitoring products, metal products, apparatus and instruments, culture and office
machines, culture and education and sports products, kitchen cabinet and gas
appliance; house and equipment rental; packing products and technical services; road
174
CHANGHONG MEILING CO.,LTD. Annual Report 2021
transportation; storage and discharging convey; R&D, sales and services of integrated
circuit and software; consultancy and services of enterprise management; hi-tech
project investment and other state-permitted business; development and operation of
property; engineering construction for house and buildings; callback and disposal of
obsolete appliance and Electronic products; services of Information Technology;
consultancy and services of finance; sales, relevant import and export business of
Chemical raw materials and products(Not contain dangerous chemicals), building
materials, non-ferrous metal, Steel, plastics, packing material, mechanical and
electrical equipment, Precious metals, Automotive components, Electronic
components, Value added telecommunication service, agent service of
telecommunication; designing, manufacturing, releasing and agency for the
advertisement; Radio and television program production; Internet information services
(excluding investment, finance and securities); audio and video production and
services; R&D and design of the drone and unmanned aerial vehicle system as well as
the promotion of drone technology; transfer and technical consulting service,
production and sales of drone (any projects that needs permission by the law should
subject to the approval by relevant authority )
1. Ended as 31 December 2021, Sichuan Changhong directly holds 212,994,972 shares of Changhong Huayi
Compressor Co., Ltd. (Stock code: 000404)- a company listed on the main board of the Shenzhen Stock Exchange,
Equity controlling and accounting for 30.60% of the equity of Changhong Huayi Compressor Co., Ltd.
jointly of other 2. Ended as 31 December 2021, Sichuan Changhong directly and indirectly holds 1,990,518,000 ordinary shares and
foreign/domestic listed preferred shares in total of Changhong Jiahua Holdings Co., Ltd. (Stock code: 03991) - a company listed on the main
company by controlling board of Hong Kong Stock Exchange, accounting for 77.44% of the whole ordinary shares and preferred shares under
shareholder in reporting the name of Changhong Jiahua Holdings Co., Ltd.
period 3. Ended as 31 December 2021, Sichuan Changhong directly holds 68,000,000 shares of Sichuan Changhong Minsheng
Logistics Co., Ltd (stock code:836237)- the company with shares transferring in National Equities Exchange and
Quotations, accounting for 55.399% of the equity of Sichuan Changhong Minsheng Logistics Co., Ltd.
3. Controlling shareholder changes in reporting period
□ Applicable √ Not applicable
Controlling shareholder stays the same in Period.
(iii) Actual controller of the Company and its person acting in concert
1. Nature of actual controller: local state-owned assets management
2. Type of actual controller: legal person
Legal
Dated
Actual controller rep./person in Organization code Main business
founded
charge of unit
State-owned Assets Supervision &
State-owned Assets Supervision &
Administration Commission of Mianyang
Administration Commission of Mianyang -- -- --
Municipality is entrusted by the same level
Municipality
government, together performs decision-making
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CHANGHONG MEILING CO.,LTD. Annual Report 2021
and management of state-owned asset owners,
and is one organization which executes
comprehensive management and supervision on
its belonged state-owned assets.
Equity controlling of other
foreign/domestic listed company by Not applicable
actual controller in reporting period
3. Changes of actual controller in Period
□ Applicable √ Not applicable
Actual controller stays the same in Period
4. Property rights and the block diagram of the control relationship between the Company and the actual control
(ended as 31st December 2021)
State-owned Assets Supervision & Administration Sichuan Provincial Finance Department
Commission of Mianyang Municipality
90% 10%
Sichuan Changhong Electronics Holding Group Co., Ltd.
23.22%
Sichuan Changhong Electric Co., Ltd.
100%
23.79%
CHANGHONG (HK) TRADING LIMITED
3.19%
Changhong Meiling Co., Ltd.
5. Actual controller controlling the Company by means of entrust or other assets management
□ Applicable √ Not applicable
(iv) The total number of shares pledged by controlling shareholders or the first majority shareholder and
its persons acting in concert accounts for 80% of the shares held by them
□ Applicable √ Not applicable
(v) Other legal person’s shareholders with over ten percent shares held
□ Applicable √ Not applicable
(vi) Limitation and reducing the holdings of shares of controlling shareholders, actual controllers,
176
CHANGHONG MEILING CO.,LTD. Annual Report 2021
restructuring side and other commitment subjects
□ Applicable √ Not applicable
IV. The specific implementation of shares repurchased/buy-back during the reporting period
(i) Implementation progress of shares buy-back
√ Applicable □ Not applicable
177
CHANGHONG MEILING CO.,LTD. Annual Report 2021
The ratio of the
number of shares
Percentage of Proposed Quantity repurchased to the
Scheme disclosure Number of shares to be Amount to be
total share repurchase/buy-back Purpose repurchased/buy-back underlying shares
time repurchased/buy-back repurchased/buy-back
capital period (shares) involved in the
equity incentive
plan (if applicable)
Buy-back of the B-share will be
2020-7-28, Not less than 50 million canceled in accordance with the
25,074,181 shares-50,148,363 18 August 2020 to
2.40%-4.80% yuan and not more than laws and registered capital of the 14,674,166 -
2021-8-25 shares 18 February 2022
100 million yuan. Company will be reduced
accordingly
Note: The company’s 40th session of the 9th BOD, the 21st session of the 9th BOS, 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. With purpose of continuing the implementation of B-share
repurchase, the Continue Implementation and Adjustment Partially of the Repurchase Program of Certain Domestic Listed Foreign Shares (B Share) was deliberated and approved by the 11th
session of 10th BOD, 9th session of 10th BOS and Third Extraordinary Shareholders General Meeting of 2021 dated August 24, 2021 and September 10, 2021. Found more on announcement
(Notice No.:2020-047, 2020-048, 2020-049, 2020-063, 2020-066, 2020-067, 2020-068, 2020-069 and 2021-075) 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 February 18, 2022, and repurchased 14,674,166 shares of the company by centralized bidding through a
dedicated securities account for repurchase, accounting for 1.4048% of the company’s total share capital, the highest transaction price was HK$2.36/share, the lowest transaction price was
HK$1.87/share, and the total amount of self-owned funds paid was HK$32,558,454.08 (excluding transaction fees such as stamp duty and commission). Cancellation of the aforementioned
shares are being completed in Shenzhen Branch of CSDC on March 2, 2022, found more on announcement (Notice No.:2022-011) released on appointed media China Securities Journal,
Securities Times, Hong Kong Commercial Daily and Juchao Website.
(ii) Implementation progress of reducing holdings of shares buy-back by centralized bidding
□ Applicable √ Not applicable
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Section VIII. Preferred Stock
□ Applicable √ Not applicable
The Company had no preferred stock in the Period
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CHANGHONG MEILING CO.,LTD. Annual Report 2021
Section IX. Bonds
□ Applicable √ Not applicable
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CHANGHONG MEILING CO.,LTD. Annual Report 2021
Section X. Financial Report
I. Audit report
Type of audit opinion Standard unqualified opinion
Date for signing the report 2022-03-29
Name of audit institute Shine Wing Certified Public Accountants (LLP)
Serial of Auditing Report XYZH/2022CDAA70131
Name of CPA Li Xifu, Wang Xiaodong
Auditor’s Report
XYZH/2022CDAA70131
To Shareholders of Changhong Meiling Co., Ltd.:
I. Auditor’s opinion
We, as the auditors, audited the financial statements of Changhong Meiling Co., Ltd. (the “Company”), which
included the consolidated balance sheet as of 31 December 2021, the consolidated statement of income, the
consolidated statement of cash flow and the consolidated statement of changes in equity of the Company for
Current Year ended 31 December 2021, together with the relevant notes thereto.
We are the view that the attached financial statements are prepared in accordance with the Business Accounting
Standards in all material aspects, which reflect fairly the consolidated financial position of the Company as of 31
December 2021 and the operating results and cash flow of the Company for Current Year of 2021.
II. Basis for audit opinions
We conducted this audit under the requirements of the Auditing Standards of the Certified Public Accountant of
the PRC. The section headed “Certified Public Accountant’s responsibility for audit of financial statement” in the
audit report has further clarified our responsibilities under these standards. Pursuant to the code of professional
conduct as certified public accountant in the PRC, we are independent of the Company and have performed other
responsibility as required by our professional ethics. We believe that the audit evidence obtained by us is
sufficient and adequate, which provides foundation for us to issue audit opinion.
III. Key audit issues
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of
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the financial statements of the current period. These matters were addressed in the context of our audit of the
financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on
these matters. The key audit matter we identified is as follows:
1.Recognition of revenue
Please refer to note (iv) 28 and note (vi) 43.
Key audit matters Audit address
Main auditing procedures for revenue recognition are including:
1) know and test the cycle internal control of sales and collection, to assess
the design and effectiveness of the internal control;
2) understand the business substance, inspect significant sales contract and
Sales revenue of the Company was mainly the corresponding sales invoice, on a random basis, receipt of notes,
sourced from sales of refrigerator, air delivery information confirmed through systems, verify that whether
conditioner, small household appliances and revenue was recognized upon satisfaction of required conditions and
kitchen and washing machines to both domestic whether the revenue recognition was made in right timing, and verify that
and overseas customers. As indicated in note whether profit was adjusted through aggressive sales policy;
(vi) 43 of the financial statement - Operating 3) Carry out supervision and other procedures to the important inventory at
income and cost, the operating income was end of the period, well-known the progress of the contracts and follow up
RMB18,032,957,501.44 in 2021. Since the the abnormal situations found in inspection;
truthfulness and completeness of revenue 4) Conduct inquiry through issue of letters, and carry out additional audit
recognition has material impact on operating procedures for the items for which reply was abnormal;
results, we attached great importance to 5) review collection of trade receivables, confirm the conformity between
recognition of sales revenue. the entities owing receivables and name of customers to verify whether
there was collection of receivables from third parties, to review the
truthfulness of the collection and revenue;
6) review collection of receivables in subsequent period;
7) make cut-off test and analysis re-review on revenue.
2.Capitalization of development expense
Please refer to note (iv)21 and note (vi) 17
Key audit matters Audit address
1) Understand the key control of capitalization of development
expenditures, implement internal control audit procedures, understand the
The development expense occurred for research
scope and accounting methods of development expenditures, understand and
and development of non-patent technology in
make research and development on related control systems and processes,
2021 was RMB 185,278,347.99, which was
and test the effectiveness of relevant internal control design and operation;
capitalized and accounted for as development
expense in the consolidated financial statement. 2) Implementation: compare the developed projects in intangible assets
Development expense could only be capitalized with machinery models for external sales, and re-verify the truthfulness of
upon satisfaction of all the capitalization capitalization of completely developed projects
conditions set out in note (iv) 21 to the
financial statement. Since to confirm whether
all the capitalization conditions are met requires 3) Dual purpose testing: inspect the project reports and inspection and
the management to make significant judgment acceptance reports formed during the research and development and
and estimate, we deem this matter important in commercialization of developed products, and judge the sufficiency of basis
the context of our audit. for accounting of development expense
IV. Other information
The management of Changhong Meiling Co., Ltd. (the “Management”) is responsible for other information which
includes the information covered in the Company’s 2021 annual report excluding the financial statement and our
audit report.
The audit opinion issued by us for the financial statement has not covered other information, for which we do not
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CHANGHONG MEILING CO.,LTD. Annual Report 2021
issue any form of assurance opinions.
Considering our audit on financial statements, we are liable to read other information, during which, we shall
consider whether other information differs materially from the financial statements or that we understand during
our audit, or whether there is any material misstatement.
Based on the works executed by us, we should report the fact if we find any material misstatement in other
information. In t his regards, we have nothing to report.
V. Responsibilities of management and those charged with governance for the financial statements
The management is responsible for the preparation of the financial statements in accordance with the Accounting
Standards for Enterprise to secure a fair presentation, and for the design, establishment and maintenance of the
internal control necessary to enable the preparation of financial statements that are free from material
misstatement, whether due to fraud or error.
In preparing the financial statements, the management is responsible for assessing the Company’s ability to
continue as a going concern, disclosing matters related to going concern and using the going concern assumption
unless the management either intends to liquidate the Company or to cease operations, or has no realistic
alternative but to do so.
Those charged with governance are responsible for overseeing the Company’s financial reporting process.
VI. Responsibilities of the auditor for the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an audit report that includes our audit opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance
with the CAS will always detect a material misstatement when it exists. Misstatements can arise from fraud or
error and are considered material if, individually or in the aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the basis of the financial statements.
As part of an audit in accordance with the CAS, we exercise professional judgment and maintain professional
skepticism throughout the audit. We also:
(1) identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error,
design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and
appropriate to provide a basis for audit opinion. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
(2) Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
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CHANGHONG MEILING CO.,LTD. Annual Report 2021
appropriate in the circumstances.
(3) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and
related disclosures made by the management.
(4) Conclude on the appropriateness of the management’s use of the going concern assumption and, based on the
audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast
significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material
uncertainty exists, we are required by the CAS to draw users’ attention in audit report to the related disclosures in
the financial statements or, if such disclosures are inadequate, to modify audit opinion. Our conclusions are based
on the information obtained up to the date of audit report. However, future events or conditions may cause the
Company to cease to continue as a going concern.
(5) Evaluate the overall presentation, structure and content of the financial statements, and whether the financial
statements represent the underlying transactions and events in a manner that achieves fair presentation.
(6) Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business
activities within the Company to express audit opinion on the financial statements. We are responsible for the
direction, supervision and performance of the group audit. We remain solely responsible for audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including any significant deficiencies in internal control that we
identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical
requirements regarding independence, and communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, related safeguard measures.
From the matters communicated with those charged with governance, we determine those matters that were of
most significance in the audit of the financial statements of the current period and are therefore the key audit
matters. We describe these matters in the auditor’s report unless law or regulation precludes public disclosure
about the matter or when, in extremely rare circumstances, we determine that a matter should not be
communicated in the auditor’s report because of the adverse consequences of doing so would reasonably be
expected to outweigh the public interest benefits of such communication.
Shine Wing Certified Public Accountants Chinese CPA:Li XiFu (engagement partner)
(LLP)
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CHANGHONG MEILING CO.,LTD. Annual Report 2021
Chinese CPA: Wang XiaoDong
Beijing China 29 March 2022
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CHANGHONG MEILING CO.,LTD. Annual Report 2021
II. Financial statements
Units in Notes of Financial Statements is RMB
1. Consolidated Balance Sheet
Prepared by CHANGHONG MEILING CO., LTD. December 31, 2021
In RMB
Item December 31, 2021 December 31, 2020
Current assets:
Monetary funds 5,938,823,396.21 6,594,786,789.98
Settlement provisions
Capital lent
Trading financial assets 17,997,086.19 47,242,339.07
Derivative financial assets
Note receivable 2,216,752.22 340,421,386.71
Account receivable 1,440,874,691.28 1,130,275,780.66
Receivable financing 1,808,109,301.56 1,632,388,702.83
Accounts paid in advance 29,766,797.34 30,105,373.40
Insurance receivable
Reinsurance receivables
Contract reserve of reinsurance receivable
Other account receivable 111,652,635.86 145,705,978.26
Including: Interest receivable
Dividend receivable
Buying back the sale of financial assets
Inventories 1,356,357,419.80 1,715,354,951.43
Contractual assets
Assets held for sale
Non-current asset due within one year
Other current assets 124,240,934.45 198,353,464.98
Total current assets 10,830,039,014.91 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 86,631,660.53 76,982,822.38
Investment in other equity instrument
Other non-current financial assets 581,980,440.70 548,148,931.34
Investment real estate 53,149,934.45 53,888,462.00
Fixed assets 2,303,122,699.92 2,391,859,440.31
Construction in progress 98,469,862.45 60,775,088.96
Productive biological asset
Oil and gas asset
Right-of-use assets 45,367,918.31
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CHANGHONG MEILING CO.,LTD. Annual Report 2021
Intangible assets 953,403,100.33 936,851,520.65
Expense on Research and Development 87,728,990.86 73,028,441.56
Goodwill
Long-term expenses to be apportioned
Deferred income tax asset 147,488,353.28 127,185,979.94
Other non-current asset 3,087,780.59
Total non-current asset 4,360,430,741.42 4,268,720,687.14
Total assets 15,190,469,756.33 16,103,355,454.46
Current liabilities:
Short-term loans 622,874,652.77 1,336,209,050.55
Loan from central bank
Capital borrowed
Trading financial liability 12,304,272.41 4,584,076.51
Derivative financial liability
Note payable 4,839,837,317.78 4,439,607,982.34
Account payable 2,299,103,796.88 2,851,999,684.30
Accounts received in advance
Contractual liability 515,004,115.23 522,550,891.28
Selling financial asset of repurchase
Absorbing deposit and interbank deposit
Security trading of agency
Security sales of agency
Wage payable 247,044,421.56 290,321,776.05
Taxes payable 141,874,861.88 89,682,433.90
Other account payable 751,452,768.00 724,701,686.72
Including: Interest payable
Dividend payable 4,753,764.56 4,466,628.25
Commission charge and commission
payable
Reinsurance payable
Liability held for sale
Non-current liabilities due within one year 332,718,478.25 407,825,150.74
Other current liabilities 24,373,759.16 22,923,698.73
Total current liabilities 9,786,588,443.92 10,690,406,431.12
Non-current liabilities:
Insurance contract reserve
Long-term loans 168,000,000.00 188,231,439.30
Bonds payable
Including: Preferred stock
Perpetual capital securities
Lease liability 33,225,912.15
Long-term account payable 1,337,643.24 1,705,323.91
Long-term wages payable 9,828,300.06 10,571,526.69
Accrual liability 11,363,601.63 62,392,735.07
Deferred income 175,664,038.83 177,377,450.12
Deferred income tax liabilities 9,670,435.45 10,575,582.33
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CHANGHONG MEILING CO.,LTD. Annual Report 2021
Other non-current liabilities
Total non-current liabilities 409,089,931.36 450,854,057.42
Total liabilities 10,195,678,375.28 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 2,682,829,400.26 2,683,837,229.12
Less: Inventory shares 26,430,571.38 9,929,336.18
Other comprehensive income -20,903,270.57 -21,451,084.17
Reasonable reserve
Surplus public reserve 423,111,236.90 416,364,790.43
Provision of general risk
Retained profit 734,129,724.00 740,754,202.23
Total owner’ s equity attributable to parent
4,837,334,400.21 4,854,173,682.43
company
Minority interests 157,456,980.84 107,921,283.49
Total owner’ s equity 4,994,791,381.05 4,962,094,965.92
Total liabilities and owner’ s equity 15,190,469,756.33 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 December 31, 2021 December 31, 2020
Current assets:
Monetary funds 3,423,276,377.52 4,605,962,184.11
Trading financial assets 7,200,222.04 37,589,391.07
Derivative financial assets
Note receivable 330,000.00 286,990,200.00
Account receivable 1,582,651,896.25 1,019,299,017.40
Receivable financing 1,484,609,403.08 1,561,429,139.80
Accounts paid in advance 48,212,105.70 39,571,728.09
Other account receivable 40,708,614.68 49,093,918.57
Including: Interest receivable
Dividend receivable
Inventories 351,523,851.67 578,905,855.30
Contractual assets
Assets held for sale
Non-current assets maturing within one
year
Other current assets 28,957,697.04 142,573,164.77
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CHANGHONG MEILING CO.,LTD. Annual Report 2021
Total current assets 6,967,470,167.98 8,321,414,599.11
Non-current assets:
Debt investment
Other debt investment
Long-term receivables
Long-term equity investments 1,882,557,241.66 1,834,115,835.95
Investment in other equity instrument
Other non-current financial assets 581,980,440.70 548,148,931.34
Investment real estate 3,752,737.75 3,961,590.38
Fixed assets 1,209,058,847.63 1,229,803,474.56
Construction in progress 50,287,155.16 47,570,309.13
Productive biological assets
Oil and natural gas assets
Right-of-use assets 18,632,705.13
Intangible assets 477,739,048.08 479,923,618.32
Research and development costs 44,387,584.10 42,913,363.51
Goodwill
Long-term deferred expenses
Deferred income tax assets 125,174,589.66 103,462,284.33
Other non-current assets 638,649.57
Total non-current assets 4,394,208,999.44 4,289,899,407.52
Total assets 11,361,679,167.42 12,611,314,006.63
Current liabilities:
Short-term borrowings 612,863,194.44 1,234,926,592.05
Trading financial liability 5,766,743.33 2,512,269.00
Derivative financial liability
Notes payable 2,409,104,654.05 2,510,288,511.69
Account payable 1,356,405,016.24 1,918,960,127.71
Accounts received in advance
Contractual liability 238,437,143.59 281,974,752.24
Wage payable 42,679,625.89 130,314,834.51
Taxes payable 20,596,813.11 19,582,700.30
Other accounts payable 909,832,533.11 624,090,798.72
Including: Interest payable
Dividend payable 4,153,764.56 3,866,628.25
Liability held for sale
Non-current liabilities due within one year 322,202,348.59 407,141,888.08
Other current liabilities 6,703,328.85 6,432,113.43
Total current liabilities 5,924,591,401.20 7,136,224,587.73
Non-current liabilities:
Long-term loans 168,000,000.00 188,231,439.30
Bonds payable
Including: Preferred stock
Perpetual capital securities
Lease liability 17,114,473.86
Long-term account payable
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CHANGHONG MEILING CO.,LTD. Annual Report 2021
Long term employee compensation
8,760,963.52 10,571,526.69
payable
Accrued liabilities 7,539,547.19 55,035,910.31
Deferred income 82,658,197.54 67,315,337.57
Deferred income tax liabilities 6,131,087.92 6,102,908.01
Other non-current liabilities
Total non-current liabilities 290,204,270.03 327,257,121.88
Total liabilities 6,214,795,671.23 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 2,753,002,178.30 2,753,137,787.99
Less: Inventory shares 26,430,571.38 9,929,336.18
Other comprehensive income
Special reserve
Surplus reserve 422,893,071.22 416,146,624.75
Retained profit 952,820,937.05 943,879,339.46
Total owner’s equity 5,146,883,496.19 5,147,832,297.02
Total liabilities and owner’s equity 11,361,679,167.42 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 2021 2020
I. Total operating income 18,032,957,501.44 15,388,050,229.67
Including: Operating income 18,032,957,501.44 15,388,050,229.67
Interest income
Insurance gained
Commission charge and commission income
II. Total operating cost 18,104,531,071.96 15,602,345,607.20
Including: Operating cost 15,869,745,814.47 12,850,871,672.57
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 129,067,764.08 150,315,512.44
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CHANGHONG MEILING CO.,LTD. Annual Report 2021
Sales expense 1,364,640,404.75 1,945,803,799.56
Administrative expense 333,588,775.37 280,245,684.56
R&D expense 465,891,096.09 380,638,922.91
Financial expense -58,402,782.80 -5,529,984.84
Including: Interest expenses 71,229,760.29 88,262,152.17
Interest income 140,024,813.71 139,603,245.84
Add: Other income 108,992,292.09 104,122,180.27
Investment income (Loss is listed with “-”) 128,963,968.59 78,127,214.62
Including: Investment income on affiliated company and
12,422,382.59 -3,500,527.61
joint 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 “-”) -3,133,939.42 41,614,800.19
Loss of credit impairment (Loss is listed with “-”) -20,983,896.93 -17,058,488.00
Losses of devaluation of asset (Loss is listed with “-”) -57,484,042.03 -78,711,657.91
Income from assets disposal (Loss is listed with “-”) -133,214.72 -500,976.21
III. Operating profit (Loss is listed with “-”) 84,647,597.06 -86,702,304.57
Add: Non-operating income 10,022,053.88 8,468,605.41
Less: Non-operating expense 5,154,068.50 7,644,641.64
IV. Total profit (Loss is listed with “-”) 89,515,582.44 -85,878,340.80
Less: Income tax expense 2,422,928.94 -6,756,228.32
V. Net profit (Net loss is listed with “-”) 87,092,653.50 -79,122,112.48
(i) Classify by business continuity
1.continuous operating net profit (net loss listed with ‘-”) 87,092,653.50 -79,122,112.48
2.termination of net profit (net loss listed with ‘-”)
(ii) Classify by ownership
1.Net profit attributable to owner’s of parent company 51,898,388.84 -85,565,716.91
2.Minority shareholders’ gains and losses 35,194,264.66 6,443,604.43
VI. Net after-tax of other comprehensive income 615,920.12 -2,992,457.19
Net after-tax of other comprehensive income attributable to owners
547,813.60 -2,519,653.81
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
547,813.60 -2,519,653.81
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
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CHANGHONG MEILING CO.,LTD. Annual Report 2021
4.Credit impairment provision for other debt investment
5.Cash flow hedging reserve
6.Translation differences arising on translation of foreign 547,813.60 -2,519,653.81
currency financial statements
7.Other
Net after-tax of other comprehensive income attributable to 68,106.52 -472,803.38
minority shareholders
VII. Total comprehensive income 87,708,573.62 -82,114,569.67
Total comprehensive income attributable to owners of parent 52,446,202.44 -88,085,370.72
Company
Total comprehensive income attributable to minority 35,262,371.18 5,970,801.05
shareholders
VIII. Earnings per share:
(i) Basic earnings per share 0.0497 -0.0819
(ii) Diluted earnings per share 0.0497 -0.0819
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 2021 2020
I. Operating income 7,828,290,567.95 8,032,949,961.07
Less: Operating cost 7,466,472,403.87 7,576,052,272.85
Taxes and surcharge 43,312,819.31 77,270,806.49
Sales expenses 114,547,496.48 266,179,349.65
Administration expenses 130,167,084.29 121,576,790.77
R&D expenses 191,827,388.68 165,977,897.35
Financial expenses -20,256,595.92 11,164,234.35
Including: Interest expenses 57,761,266.90 73,229,668.93
Interest income 81,650,131.24 108,915,320.16
Add: Other income 58,148,812.31 61,723,009.62
Investment income (Loss is listed with “-”) 92,743,182.98 154,731,621.05
Including: Investment income on affiliated Company and 14,597,022.15 2,444,675.51
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 “-”) 187,866.00 35,734,549.41
Loss of credit impairment (Loss is listed with “-”) -412,613.92 -8,516,361.52
Losses of devaluation of asset (Loss is listed with “-”) -9,191,483.58 -25,062,192.29
Income on disposal of assets (Loss is listed with “-”) 14,752.64
II. Operating profit (Loss is listed with “-”) 43,710,487.67 33,339,235.88
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CHANGHONG MEILING CO.,LTD. Annual Report 2021
Add: Non-operating income 2,837,084.03 3,765,462.09
Less: Non-operating expense 767,232.46 1,578,179.79
III. Total Profit (Loss is listed with “-”) 45,780,339.24 35,526,518.18
Less: Income tax -21,684,125.42 -20,252,784.15
IV. Net profit (Net loss is listed with “-”) 67,464,464.66 55,779,302.33
(i) continuous operating net profit (net loss listed with ‘-”) 67,464,464.66 55,779,302.33
(ii) termination of net profit (net loss listed with ‘-”)
V. Net after-tax of other comprehensive income
(i) Other comprehensive income items which will not be
reclassified subsequently to profit of loss
1.Changes of the defined benefit plans that re-measured
2.Other comprehensive income under equity method that
cannot be transfer to gain/loss
3.Change of fair value of investment in other equity
instrument
4.Fair value change of enterprise's credit risk
5. Other
(ii) Other comprehensive income items which will be
reclassified subsequently to profit or loss
1.Other comprehensive income under equity method that
can transfer to gain/loss
2.Change of fair value of other debt investment
3.Amount of financial assets re-classify to other
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 67,464,464.66 55,779,302.33
VII. Earnings per share:
(i) Basic earnings per share 0.0646 0.0534
(ii) Diluted earnings per share 0.0646 0.0534
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 2021 2020
I. Cash flows arising from operating activities:
Cash received from selling commodities and providing labor
18,267,890,783.43 15,474,524,946.52
services
Net increase of customer deposit and interbank deposit
Net increase of loan from central bank
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CHANGHONG MEILING CO.,LTD. Annual Report 2021
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 611,293,022.30 486,548,522.92
Other cash received concerning operating activities 243,549,134.14 159,076,641.25
Subtotal of cash inflow arising from operating activities 19,122,732,939.87 16,120,150,110.69
Cash paid for purchasing commodities and receiving labor
16,131,183,801.59 12,027,673,706.26
service
Net increase of customer loans and advances
Net increase of deposits in central bank and interbank
Cash paid for original insurance contract compensation
Net increase of capital lent
Cash paid for interest, commission charge and commission
Cash paid for bonus of guarantee slip
Cash paid to/for staff and workers 1,643,453,647.47 1,431,514,956.02
Taxes paid 378,617,838.78 399,508,941.22
Other cash paid concerning operating activities 808,554,393.93 857,936,284.73
Subtotal of cash outflow arising from operating activities 18,961,809,681.77 14,716,633,888.23
Net cash flows arising from operating activities 160,923,258.10 1,403,516,222.46
II. Cash flows arising from investing activities:
Cash received from recovering investment 1,809,000,000.00 937,460,000.00
Cash received from investment income 27,234,864.16 44,100,269.99
Net cash received from disposal of fixed, intangible and other
1,790,401.44 1,193,743.37
long-term assets
Net cash received from disposal of subsidiaries and other units
Other cash received concerning investing activities 251,294,914.65 188,247,281.95
Subtotal of cash inflow from investing activities 2,089,320,180.25 1,171,001,295.31
Cash paid for purchasing fixed, intangible and other long-term
262,327,894.22 364,989,816.21
assets
Cash paid for investment 1,809,000,001.00 1,435,330,051.17
Net increase of mortgaged loans
Net cash received from subsidiaries and other units obtained
Other cash paid concerning investing activities 68,334.39 986,271.84
Subtotal of cash outflow from investing activities 2,071,396,229.61 1,801,306,139.22
Net cash flows arising from investing activities 17,923,950.64 -630,304,843.91
III. Cash flows arising from financing activities:
Cash received from absorbing investment 16,650,992.51
Including: Cash received from absorbing minority shareholders’
16,650,992.51
investment by subsidiaries
Cash received from loans 1,669,454,955.26 2,021,603,483.37
Other cash received concerning financing activities 14,136,579.91 28,151,427.20
Subtotal of cash inflow from financing activities 1,700,242,527.68 2,049,754,910.57
194
CHANGHONG MEILING CO.,LTD. Annual Report 2021
Cash paid for settling debts 2,320,384,722.05 1,617,428,204.65
Cash paid for dividend and profit distributing or interest paying 102,019,282.33 118,512,956.15
Including: Dividend and profit of minority shareholder paid by
1,598,892.00 4,796,676.00
subsidiaries
Other cash paid concerning financing activities 28,323,542.28 12,542,832.06
Subtotal of cash outflow from financing activities 2,450,727,546.66 1,748,483,992.86
Net cash flows arising from financing activities -750,485,018.98 301,270,917.71
IV. Influence on cash and cash equivalents due to fluctuation in
-13,697,073.29 -34,759,956.67
exchange rate
V. Net increase of cash and cash equivalents -585,334,883.53 1,039,722,339.59
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 5,840,194,931.57 6,425,529,815.10
Legal Representative: Wu Dinggang
Person in charge of accounting works: Pang Haitao
Person in charge of accounting institute: Yang Jun
6. Cash Flow Statement of Parent Company
In RMB
Item 2021 2020
I. Cash flows arising from operating activities:
Cash received from selling commodities and providing labor
6,992,278,846.46 7,102,136,613.89
services
Write-back of tax received 367,247,994.85 237,614,998.44
Other cash received concerning operating activities 104,028,498.51 74,421,463.54
Subtotal of cash inflow arising from operating activities 7,463,555,339.82 7,414,173,075.87
Cash paid for purchasing commodities and receiving labor
7,483,098,738.97 5,957,461,284.93
service
Cash paid to/for staff and workers 470,465,273.15 380,635,018.64
Taxes paid 44,871,430.22 93,192,598.56
Other cash paid concerning operating activities 265,530,268.75 219,564,169.05
Subtotal of cash outflow arising from operating activities 8,263,965,711.09 6,650,853,071.18
Net cash flows arising from operating activities -800,410,371.27 763,320,004.69
II. Cash flows arising from investing activities:
Cash received from recovering investment 1,700,000,000.00 902,460,000.00
Cash received from investment income 27,492,076.57 112,286,752.95
Net cash received from disposal of fixed, intangible and other
1,257,706.09 761,361.40
long-term assets
Net cash received from disposal of subsidiaries and other units
Other cash received concerning investing activities 153,610,973.82 159,391,407.68
Subtotal of cash inflow from investing activities 1,882,360,756.48 1,174,899,522.03
Cash paid for purchasing fixed, intangible and other long-term
166,190,792.44 153,996,525.53
assets
Cash paid for investment 1,735,000,000.00 1,542,169,149.17
Net cash received from subsidiaries and other units obtained
Other cash paid concerning investing activities 197,627.47 262,000.00
195
CHANGHONG MEILING CO.,LTD. Annual Report 2021
Subtotal of cash outflow from investing activities 1,901,388,419.91 1,696,427,674.70
Net cash flows arising from investing activities -19,027,663.43 -521,528,152.67
III. Cash flows arising from financing activities:
Cash received from absorbing investment
Cash received from loans 1,659,454,955.26 1,593,705,833.37
Other cash received concerning financing activities 532,028,797.36 208,756,128.75
Subtotal of cash inflow from financing activities 2,191,483,752.62 1,802,461,962.12
Cash paid for settling debts 2,219,678,042.05 1,197,397,944.82
Cash paid for dividend and profit distributing or interest paying 98,533,426.01 103,355,298.99
Other cash paid concerning financing activities 224,952,054.90 143,243,602.49
Subtotal of cash outflow from financing activities 2,543,163,522.96 1,443,996,846.30
Net cash flows arising from financing activities -351,679,770.34 358,465,115.82
IV. Influence on cash and cash equivalents due to fluctuation in
-11,424,039.40 -20,153,571.24
exchange rate
V. Net increase of cash and cash equivalents -1,182,541,844.44 580,103,396.60
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 3,414,961,989.34 4,597,503,833.78
Legal Representative: Wu Dinggang
Person in charge of accounting works: Pang Haitao
Person in charge of accounting institute: Yang Jun
196
CHANGHONG MEILING CO.,LTD. Annual Report 2021
7. Statement of Changes in Owners’ Equity (Consolidated)
This Period
2021
Owners’ equity attributable to the parent Company
Other
equity instrument Prov
Reas
Item ision Minority Total owners’
Perpet Less: Other onab
of interests equity
Share capital ual Capital reserve Inventory comprehensive le Surplus reserve Retained profit Other Subtotal
Preferre gene
capital Other shares income reser
d stock ral
securit ve
risk
ies
I. The ending
balance of the 1,044,597,881.00 2,683,837,229.12 9,929,336.18 -21,451,084.17 416,364,790.43 740,754,202.23 4,854,173,682.43 107,921,283.49 4,962,094,965.92
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
the period -1,007,828.86 16,501,235.20 547,813.60 6,746,446.47 -6,624,478.23 -16,839,282.22 49,535,697.35 32,696,415.13
(Decrease is
listed with “-”)
(i) Total 547,813.60 51,898,388.84 52,446,202.44 35,262,371.18 87,708,573.62
comprehensiv
197
CHANGHONG MEILING CO.,LTD. Annual Report 2021
e income
(ii) Owners’
devoted and
-1,007,828.86 16,501,235.20 -17,509,064.06 15,872,218.17 -1,636,845.89
decreased
capital
1.Common
shares
-5,438.39 16,501,235.20 -16,506,673.59 15,000,000.00 -1,506,673.59
invested by
shareholders
2. Capital
invested by
holders of
other equity
instruments
3. Amount
reckoned into
owners equity
with
share-based
payment
4. Other -1,002,390.47 -1,002,390.47 872,218.17 -130,172.30
(iii) Profit
6,746,446.47 -58,522,867.07 -51,776,420.60 -1,598,892.00 -53,375,312.60
distribution
1. Withdrawal
of surplus 6,746,446.47 -6,746,446.47
reserves
2. Withdrawal
of general risk
provisions
3. Distribution
for owners (or -51,776,420.60 -51,776,420.60 -1,598,892.00 -53,375,312.60
shareholders)
4. Other
(iv) Carrying
forward
internal
owners’ equity
1. Capital
reserves
conversed to
198
CHANGHONG MEILING CO.,LTD. Annual Report 2021
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
comprehensiv
e income
6. Other
(v) Reasonable
reserve
1. Withdrawal
in the report
period
2. Usage in the
report period
(vi) Others
IV. Balance at
the end of the 1,044,597,881.00 2,682,829,400.26 26,430,571.38 -20,903,270.57 423,111,236.90 734,129,724.00 4,837,334,400.21 157,456,980.84 4,994,791,381.05
period
Last Period
In RMB
2020
Item Owners’ equity attributable to the parent Company Minority Total owners’
Share capital Other Capital reserve Less: Other Reasonable Surplus reserve Provision Retained profit Other Subtotal interests equity
199
CHANGHONG MEILING CO.,LTD. Annual Report 2021
equity instrument Inventory comprehensive reserve of
shares income general
Perpetual risk
Preferred
capital Other
stock
securities
I. The ending
balance of the 1,044,597,881.00 2,684,366,619.10 -18,931,430.36 410,786,860.20 884,127,743.42 5,004,947,673.36 107,027,038.74 5,111,974,712.10
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 in
the period -529,389.98 9,929,336.18 -2,519,653.81 5,577,930.23 -143,373,541.19 -150,773,990.93 894,244.75 -149,879,746.18
(Decrease is
listed with “-”)
(i) Total
comprehensive -2,519,653.81 -85,565,716.91 -88,085,370.72 5,970,801.05 -82,114,569.67
income
(ii) Owners’
devoted and
-529,389.98 9,929,336.18 -10,458,726.16 320,119.70 -10,138,606.46
decreased
capital
1.Common
shares
-5,605.38 9,929,336.18 -9,934,941.56 -9,934,941.56
invested by
shareholders
2. Capital
invested by
200
CHANGHONG MEILING CO.,LTD. Annual Report 2021
holders of
other equity
instruments
3. Amount
reckoned into
owners equity
with
share-based
payment
4. Other -523,784.60 -523,784.60 320,119.70 -203,664.90
(iii) Profit
5,577,930.23 -57,807,824.28 -52,229,894.05 -5,396,676.00 -57,626,570.05
distribution
1. Withdrawal
of surplus 5,577,930.23 -5,577,930.23
reserves
2. Withdrawal
of general risk
provisions
3. Distribution
for owners (or -52,229,894.05 -52,229,894.05 -5,396,676.00 -57,626,570.05
shareholders)
4. Other
(iv) Carrying
forward
internal
owners’ equity
1. Capital
reserves
conversed to
capital (share
capital)
2. Surplus
reserves
conversed to
capital (share
capital)
3. Remedying
loss with
surplus reserve
4. Carry-over
201
CHANGHONG MEILING CO.,LTD. Annual Report 2021
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 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
period
Legal Representative: Wu Dinggang
Person in charge of accounting works: Pang Haitao
Person in charge of accounting institute: Yang Jun
8. Statement of Changes in Owners’ Equity (Parent Company)
This Period
2021
Other
Less: Other
Item equity instrument Reasonable Total owners’
Share capital Capital reserve Inventory comprehensive Surplus reserve Retained profit Other
Preferred Perpetual shares reserve equity
Other income
stock capital
202
CHANGHONG MEILING CO.,LTD. Annual Report 2021
securities
I. The ending balance of
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
the previous year
Add: Changes of
accounting policy
Error correction of
the last period
Other
II. The beginning
balance of the current 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
year
III. Increase/ Decrease
in the period (Decrease -135,609.69 16,501,235.20 6,746,446.47 8,941,597.59 -948,800.83
is listed with “-”)
(i) Total comprehensive
67,464,464.66 67,464,464.66
income
(ii) Owners’ devoted and
-135,609.69 16,501,235.20 -16,636,844.89
decreased capital
1.Common shares
-5,438.39 16,501,235.20 -16,506,673.59
invested by shareholders
2. Capital invested by
holders of other equity
instruments
3. Amount reckoned into
owners equity with
share-based payment
4. Other -130,171.30 -130,171.30
(iii) Profit distribution 6,746,446.47 -58,522,867.07 -51,776,420.60
1. Withdrawal of surplus
6,746,446.47 -6,746,446.47
reserves
2. Distribution for
-51,776,420.60 -51,776,420.60
owners (or shareholders)
3. Other
(iv) Carrying forward
internal owners’ equity
1. Capital reserves
conversed to capital
203
CHANGHONG MEILING CO.,LTD. Annual Report 2021
(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
IV. Balance at the end of
1,044,597,881.00 2,753,002,178.30 26,430,571.38 422,893,071.22 952,820,937.05 5,146,883,496.19
the period
Last period
In RMB
2020
Other
equity instrument Less: Other
Item Reasonable Total owners’
Share capital Perpetual Capital reserve Inventory comprehensive Surplus reserve Retained profit Other
Preferred shares reserve equity
capital Other income
stock
securities
I. The ending balance of
1,044,597,881.00 2,753,017,007.10 410,568,694.52 945,907,861.41 5,154,091,444.03
the previous year
Add: Changes of
accounting policy
Error correction of
the last period
Other
204
CHANGHONG MEILING CO.,LTD. Annual Report 2021
II. The beginning balance
1,044,597,881.00 2,753,017,007.10 410,568,694.52 945,907,861.41 5,154,091,444.03
of the current year
III. Increase/ Decrease in
the period (Decrease is 120,780.89 9,929,336.18 5,577,930.23 -2,028,521.95 -6,259,147.01
listed with “-”)
(i) Total comprehensive
55,779,302.33 55,779,302.33
income
(ii) Owners’ devoted and
120,780.89 9,929,336.18 -9,808,555.29
decreased capital
1.Common shares
-5,605.38 9,929,336.18 -9,934,941.56
invested by shareholders
2. Capital invested by
holders of other equity
instruments
3. Amount reckoned into
owners equity with
share-based payment
4. Other 126,386.27 126,386.27
(iii) Profit distribution 5,577,930.23 -57,807,824.28 -52,229,894.05
1. Withdrawal of surplus
5,577,930.23 -5,577,930.23
reserves
2. Distribution for owners
-52,229,894.05 -52,229,894.05
(or 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
205
CHANGHONG MEILING CO.,LTD. Annual Report 2021
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
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
the period
Legal Representative: Wu Dinggang
Person in charge of accounting works: Pang Haitao
Person in charge of accounting institute: Yang Jun
206
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
I. Company profile
Changhong Meiling Co., Ltd (hereinafter referred to as “the Company”) ，originally named as Hefei Meiling
Co., Ltd. is an incorporated Company established and reorganized by Hefei Meiling Refrigerator General
Factory and approved on June 12th 1992 through [WanTiGaiHanZi (1992) No.039] issued by original
Mechanism Reform Committee of Anhui Province. On August 30th 1993, through Anhui Provincial
Government [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.
119
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise 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 RMB0.5 (tax included) plus
two shares for every ten shares to all shareholders capitalized from capital reserve, based on the total share
capital of 636,449,338 shares as of 31 December 2011. The total share capital of the Company upon
implementation of capitalization of capital reserve increased to 763,739,205 shares from 636,449,338 shares,
and was verified by Anhui Anlian Xinda Accounting Firm with the verification report WALXDYZ (2012)
No.093.
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 4.70 yuan 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).
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Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Ended as 31 December 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 1,766,269 0.17%
3. Other domestic shares 5,409,233 0.52%
Including: Domestic legal person’s
3,884,551 0.37%
shares
Domestic natural person’s
1,524,682 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
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Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
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)
II. Scope of consolidated financial statement
In the reporting period, the consolidated financial statements of the Company cover 27 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 subsidiary
Anhui Ling’an Medical Equipment Co., Ltd was increased in the consolidation scope. The Tai yuan Meiling
Electric Appliances Marketing Co., Ltd, Tianjin Meiling Electric Appliances Marketing Co., Ltd and
Guangzhou Meiling Electric Appliances Marketing Co., Ltd were decreased for mergers & acquisition.
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.
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Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
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
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.
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Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
All the material inter-company transactions, non-extraordinary items and unrealized profit within the
combination scope are written-off when preparing consolidated financial statement. Owners’ equity of
subsidiary not attributable to parent company and current net gains and losses, other comprehensive income
and total comprehensive income attributable to minority shareholders are recognized as non-controlling
interests, minority interests, other comprehensive income attributable to minority shareholders and total
comprehensive income attributable to minority shareholders in consolidated financial statement respectively.
As for subsidiary acquired through business combination under common control, its operating results and
cash flow will be included in consolidated financial statement since the beginning of the period when
combination occurs. When preparing comparative consolidated financial statement, the relevant items in
previous years financial statement shall be adjusted as if the reporting entity formed upon combination has
been existing since the ultimate controller commenced relevant control.
As for equity interests of the investee under common control acquired through various transactions which
eventually formed business combination, the Company shall supplement disclosure of the accounting
treatment in consolidated financial statement in the reporting period when controlling power is obtained. For
example, as for equity interests of the investee under common control acquired through various transactions
which eventually formed business combination, adjustments shall be made as if the current status had been
existing when the ultimate controller commenced control in connection of preparing consolidated financial
statement; in connection with preparing comparative statement, the Company shall consolidate the relevant
assets and liabilities of the acquiree into the Company’s comparative consolidated financial statement to the
extent not earlier than the timing when the Company and the acquiree are all under control of the ultimate
controller, and the net assets increased due to combination shall be used to adjust relevant items under
owners’ equity in comparative statement. In order to prevent double computation of the value of the
acquiree’s net assets, the relevant profits and losses, other comprehensive income and change of other net
assets recognized during the period from the date when the Company acquires original equity interests and
the date when the Company and the acquiree are all under ultimate control of the same party (whichever is
later) to the date of combination in respect of the long-term equity investment held by the Company before
satisfaction of combination shall be utilized to offset the beginning retained earnings and current gains and
losses in the period as the comparative financial statement involves, respectively.
As for subsidiary acquired through business combination not under common control, its operating results and
cash flow will be included in consolidated financial statement since the Company obtains controlling power.
When preparing consolidated financial statement, the Company shall adjust the subsidiary’s financial
statement based on the fair value of the various identifiable assets, liabilities or contingent liabilities
recognized as of the acquisition date.
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Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
As for equity interests of the investee not under common control acquired through various transactions which
eventually formed business combination, the Company shall supplement disclosure of the accounting
treatment in consolidated financial statement in the reporting period when controlling power is obtained. For
example, as for equity interests of the investee not under common control acquired through various
transactions which eventually formed business combination, when preparing consolidated financial statement,
the Company would re-measure the equity interests held in the acquiree before acquisition date at their fair
value as of the acquisition date, and any difference between the fair value and carrying value is included in
current investment income. in case that the equity interests in acquiree held by the Company before the
relevant acquisition date involves other comprehensive income at equity method and change of other owners’
equity (other than net gains and losses, other comprehensive income and profit distribution), then the equity
interests would transfer to investment gains and losses for the period which the acquisition date falls upon.
The other comprehensive income arising from change of the net liabilities or net assets under established
benefit scheme as acquiree’s re-measured such scheme is excluded.
The transaction with non-controlling interest to dispose long-term equity investment in a subsidiary without
losing control rights over the subsidiary, the difference between the proceeds from disposal of interests and
the decrease of the shared net assets of the subsidiary is adjusted to capital premium (share premium). In case
capital reserve is not sufficient to offset the difference, retained earnings will be adjusted.
As for disposal of part equity investment which leads to losing control over the investee, the Company would
re-measure the remaining equity interests at their fair value as of the date when the Company loses control
over the investee when preparing consolidated financial statement. The sum of consideration received from
disposal of equity interest and fair value of the remaining equity interest, less the net assets of the original
subsidiary attributable to the Company calculated based on the original shareholding proportion since the
acquisition date or the date then consolidation commences, is included in investment gains and losses for the
period when control is lost, meanwhile to offset goodwill. Other comprehensive income related to equity
interest investment in original subsidiaries is transferred into current investment gains and losses upon lost of
control.
If the disposal of the equity investment of a subsidiary is realized through multiple transactions until loss of
control and is a package deal, the accounting treatment of these transactions should be dealt with as one
transaction of disposal of the subsidiary until loss of control. However, before the Company loses total
control of the subsidiary, the differences between the actual disposal price and the share of the net assets of
the subsidiary disposed of in every transaction should be recognized as other comprehensive income in the
consolidated financial statements,and transferred to profit or loss when losing control.
7. Accounting treatment for joint venture arrangement and joint controlled entity
The joint venture arrangement of the Company consists of joint controlled entity and joint venture. As for
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Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
jointly controlled entity, the Company determines the assets held and liabilities assumed separately as a party
to the jointly controlled entity, recognizes such assets and liabilities according to its proportion, and
recognizes relevant income and expense separately under relevant agreement or according to its proportion.
As for asset transaction relating to purchase and sales with the jointly controlled entity which does not
constitute business activity, part of the gains and losses arising from such transaction attributable to other
participators of the jointly controlled entity is only recognized.
8.Cash and cash equivalents
Cash in the cash flow statement comprises the Group’s cashon hand and deposits that can be readily with
drawn on demand.Cash equivalents are short-term,highly liquid investments held by the Group,that are
readily convertible to knownamountsofcashandwhicharesubjecttoaninsignificantriskofchangesinvalue,
including but not limited to the followings which meet the aforesaid conditions: debt investment matured
within three months upon the acquisition date, bank time deposit which can be early withdrew by serving a
notice and transferrable deposit receipt, etc. for time deposit which can not be used for payment at any time,
it would be note recognized as cash; while if can be used for such purpose, it would be recognized as cash.
Guarantee deposit over three months in other monetary capital shall not be recognized as cash equivalents,
and those less than three months are recognized as cash equivalents.
9. Foreign currency business and foreign currency financial statement conversion
(1) Foreign currency business
As for the foreign currency business, the Company converts the foreign currency amount into RMB amount
pursuant to the spot exchange rate as of the business day. As at the balance sheet date, monetary items
expressed by foreign currency are converted into RMB pursuant to the spot exchange rate as of the balance
sheet date. The conversion difference occurred is recorded into prevailing gains and losses, other than the
disclosure which is made according to capitalization rules for the exchange difference occurred from the
special foreign currency borrowings borrowed for constructing and producing the assets satisfying condition
of capitalization. As for the foreign currency non-monetary items measured by fair value, the amount is then
converted into RMB according to the spot exchange rate as of the confirmation day for fair value. And the
conversion difference occurred during the procedure is recorded into prevailing gains and losses directly as
change of fair value. As for the foreign currency non-monetary items measured by historical cost, conversion
is made with the spot exchange rate as of the business day, with no change in RMB amount.
(2) Conversion of foreign currency financial statement
Spot exchange rate as of the balance sheet date is adopted for conversion of assets and liabilities in foreign
currency balance sheet; as for the items in statement of owners’ equity except for “Retained profit”,
conversion is made pursuant to the spot exchange rate of business day; income and expense items in income
statement then are also converted pursuant to the spot exchange rate of transaction day. Difference arising
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Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
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.
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
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Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
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
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.
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Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
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.
①Evaluate expected credit losses based on individual items: credit notes receivable (including accepted letters
of credit) of financial institutions in notes receivable and accounts receivable, and related party payments
(related parties under the same control and significant related parties); dividends receivable, interest receivable,
reserve funds, investment loans, cash deposits (including warranty), government grants (including dismantling
subsidies) in other receivables, and receivables with significant financing components (i.e. long-term
receivables);
②Evaluate expected credit losses based on customer credit characteristics and ageing combinations: in
addition to evaluating expected credit losses based on individual items, the Group evaluates the expected credit
losses of notes receivable and accounts receivable and other receivables financial instruments based on
customer credit characteristics and ageing combinations.
The Group considers all reasonable and evidenced information, including forward-looking information, when
assessing expected credit losses. When there is objective evidence that its customer credit characteristics and
ageing combination cannot reasonably reflect its expected credit loss, the current value of the expected future
cash flow is measured by a single item, and the cash flow shortage is directly written down the book balance
of the financial asset.
2) Assess the expected credit losses on a case-by-case basis for other assets to which the financial
instruments are impaired, such as the loan commitments and financial guarantee contracts that are not
measured at fair value through profit or loss, financial assets measured at fair value and whose changes are
recognized in other comprehensive income; other financial assets measured at amortized cost (such as other
current assets, other non-current financial assets, etc.).
(4) Reorganization basis and measure method for transfer of financial assets
The financial assets meet one of following requirements will be terminated recognition: ① The contract
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Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
rights of collecting cash flow of the financial assets is terminated; ②The financial assets has already been
transferred, and the Company has transferred almost all risks and remunerations of financial assets ownership
to the transferee; ③The financial assets has been transferred, even though the Company has neither transferred
nor kept almost all risks and remunerations of financial assets ownership, the Company has given up
controlling the financial assets.
If the enterprise has neither transferred or kept almost all risks and remunerations of financial assets
ownership, nor given up controlling the financial assets, then confirm the relevant financial assets according
to how it continues to involve into the transferred financial assets and confirm the relevant liabilities
accordingly. The extent of continuing involvement in the transferred financial assets refers to the level of risk
arising from the changes in financial assets value faced by the enterprise.
If the entire transfer of financial assets satisfies the demand for derecognition, reckon the balance between
the book value of the transferred financial assets and the sum of consideration received from transfer and
fluctuation accumulated amount of fair value formerly reckoned in other consolidated income in the current
profits and losses.
If part transfer of financial assets satisfies the demand for derecognition, apportion the integral book value of
the transferred financial assets between the derecognized parts and the parts not yet derecognized according
to each relative fair value, and reckon the balance between the sum of consideration received from transfer
and fluctuation accumulated amount of fair value formerly reckoned in other consolidated income that should
be apportioned to the derecognized parts and the apportioned aforementioned carrying amounts in the current
profits and losses.
When the Group sells financial assets adopting the mode of recourse, or endorses and transfers its financial
assets, it is necessary to ensure whether almost all the risks and rewards of ownership of the financial assets
have been transferred. If almost all the risks and rewards of ownership of the financial assets have been
transferred to the transferee, the financial assets shall be derecognized; if almost all the risks and rewards of
ownership of the financial assets are retained, the financial assets shall not be derecognized; if almost all the
risks and rewards of ownership of the financial assets are neither transferred nor retained, continue to judge
whether the company retains control over the assets, and conduct accounting treatment according to the
principles described in the preceding paragraphs.
(5) Category and measurement of financial liability
Financial liability is classified into financial liability measured by fair value and with variation reckoned into
current gains/losses and other financial liability at initially measurement. Financial liability shall be initially
recognized and measured at fair value. As for the financial liability measured by fair value and with variation
reckoned into current gains/losses, relevant trading costs are directly reckoned into current gains/losses while
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Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
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
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
recognizedthe 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
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Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
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
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
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Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
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.
(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.
133
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
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
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.
134
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
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 whichthe 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
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.
135
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
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:
Predicted rate of salvage Depreciation rate per
Category Depreciation term(Year)
value (%) annual (%)
House and buildings 30-40years 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
136
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
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
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:
137
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Predicted rate of salvage Depreciation rate per
No. Category Depreciation term
value year
1 House and buildings 30-40years 4%-5% 2.375%-3.20%
2 Machinery equipment 10-14years 4%-5% 6.786%-9.60%
3 Transport equipment 5-12years 4%-5% 7.92%-19.20%
4 Other equipment 8-12years 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
borrowing. Capitalization rate is determined according to weighted average interest rate of common
borrowing.
138
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
19. Right-of-use assets
Upon becoming a lessee under a lease contract, the Company is entitled to receive substantially all of the
economic benefits, arising from the use of the identified assets during the period of use and is entitled to
recognized the right-of-use assets at the sum of the present value of the lease liability, prepaid rent and initial
direct costs, and to recognized the depreciation and interest expenses respectively, when the use of the
identified assets dominates during that period of use.
When the Company becomes the lessee of a lease contract, for short-erm leases of less than one year without
a purchase option and leases with a value of less than 40000 yuan (excluding sublease or expected sublease
assets), the Company elects to follow simplified treatment and record the related assets at cost or current
gain/loss on a straight-line basis over the lease period.
20. Intangible assets
The Company’s intangible assets include land use rights, trademark rights and non-proprietary technology,
which are measured at actual cost at the time of acquisition, of which, acquired intangible assets are stated at
actual cost based on the price actually paid and related other expenditure; the actual cost of an intangible
asset invested by an investor is determined at the value agreed in the investment contract or agreement,
except where the agreed value in the contract or agreement is not fair, in which case the actual cost is
determined at fair value.
The land use rights are amortized equally over the period from the commencement date of the grant; the
remaining intangible assets are amortized equally over the shortest of the estimated useful life, the
contractual beneficial life and the effective life as prescribed by law. Amortization is charged to the cost of
the relevant asset and to current profit or loss in accordance with the object of its benefit. The estimated
useful life and amortization method for intangible assets with finite useful lives are reviewed at the end of
each year and any changes are treated as changes in accounting estimates.
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;
139
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
-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 onfixed assets, construction in process and
intangible assets with limited service life. When the following indications appear, assets may be impaired,
and the Company would have impairment test. As for goodwill and intangible assets which have uncertain
service life, no matter there is impairment or not, impairment test shall be conducted at the end of every year.
If it is hard to make test on recoverable amount of single asset, test is expected to make on the basis of the
assets group or assets group portfolio where such asset belongs to.
After impairment test, if the carrying value exceeds the recoverable amount of the asset, the balance is
recognized as impairment loss. As long as impairment loss of the aforementioned assets is recognized, it
couldn’t be switched back in later accounting periods. Recoverable amount of assets refers to the higher of
fair value of assets net disposal expense and present value of predicted cash flow of the asset.
Indications for impairment are as follows:
(1) Market value of asset drops a lot in current period, the drop scope is obviously greater than the predicted
drop due to move-on of times or normal utilization;
(2) Economy, technology or law environment where enterprise operates or market where asset is located will
have significant change in current or recent periods, which brings negative influence to enterprise;
(3) Market interest rate or returning rate of other market investments have risen in current period, which
brings influence in calculating discount rate of present value of predicted future cash flow of assets, which
leads to a great drop in recoverable amount of such assets;
(4) Evidence proving that asset is obsolete and out of time or its entity has been damaged;
(5) Asset has been or will be keep aside, terminating utilization or disposed advance;
(6) Internal report of enterprise shows that economic performance of asset has been or will be lower than
prediction, such as that net cash flow created by asset or operation profit (or loss) realized by asset is greatly
lower (or higher) than the predicted amount;
(7) Other indications showing possible impairment of assets
140
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
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
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.
141
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
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.Lease liability
Upon becoming a lessee under a lease contract, the Company recognizes a lease liability for the leased-in
asset at the present value of the unpaid lease payments, net of lease incentives (except for short-term leases
and leases of low-value assets for which simplified treatment is elected), when it is entitled to receive
substantially all of the economic benefits arising from the use of the identified asset during the period of use
and is entitled to dominate the use of the identified asset during that period of use.
27.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.
28. Revenue
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 recognizedwhen
the customer obtains control of the relevant goods or services.
If the contract contains two or more performance obligations, the Company will allocate the transaction price
to each individual performance obligation according to the relative proportion of the stand-alone selling price
of the goods or services promised by each individual performance obligation on the date of the contract. The
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
142
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
money expected to be returned to the customer will be regarded as a return liability and not included in the
transaction price.If there is a significant financing component in the contract, the Company shall determine
the transaction price based on the amount payable on the assumption that the customer pays in cash when
obtaining the control of the goods or services. The difference between the transaction price and the contract
consideration shall be amortized by the effective interest method during the contract period. On the starting
date of the contract, if the Company expects that the interval between the customer's acquisition of control of
the goods or services and the customer's payment of the price doesn’t exceed one year, the significant
financing components in the contract shall be ruled out.
When meeting one of the following conditions, the Company is to perform its performance obligations
within a certain period of time, otherwise, it is to perform its performance obligations at a certain point in
time:
1) The customer obtains and consumes the economic benefits brought by the Company's performance at the
same time as the Company's performance;
2) Customers can control the products under construction during the performance of the Company;
3) The goods produced by the Company during the performance of the contract have irreplaceable uses, and
the Company has the right to collect payment for the accumulated performance part of the contract during the
entire contract period.
For performance obligations performed within a certain period of time, the Company recognizes revenue in
accordance with the performance progress during that period and determine the progress of performance in
accordance with the output method. When the performance progress cannot be reasonably determined, if the
cost incurred by the Company is expected to be compensated, the revenue shall be recognized according to
the amount of the cost incurred until the performance progress can be reasonably determined.
For performance obligations performed at a certain point in time, the Company recognizes revenue at the
point when the customer obtains control of the relevant goods or services. When judging whether a customer
has obtained control of goods or services, the Company will consider the following signs:
1) The Company has the current right to collect payment for the goods or services;
2) The Company has transferred the goods in kind to the customer;
3) The Company has physically transferred the goods to the customer;
4) The Company has transferred the principal risks and rewards of ownership of the goods to the customer;
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
143
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
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.
29. 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.
30. Deferred Income Tax Assets and Deferred Income Tax Liabilities
A deferred tax asset and deferred tax liability shall be determined by a difference (temporary difference)
between the carrying amount of an asset or liability and its tax base. The deferred tax asset shall be
recognized for the carry forward of unused deductible losses that it is probable that future taxable profits will
be available against which the deductible losses can be utilized. For temporary difference arising from initial
recognition of goodwill, no corresponding deferred income tax liabilities will be recognized. For temporary
difference arising from initial recognition of assets and liabilities occurred in the transaction related to
non-business combination which neither affect accounting profit nor taxable income (or deductible losses),
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.
144
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
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.
31.Lease
When the Company becomes the lessee of the lease contract, has the right to obtain almost all the economic
benefits arising from the use of the identified assets during the period of use, and has the right to lead the use
of the identified assets during the period of use, the present value of unpaid lease payments of the lease assets
after deducting lease incentives (except for short-term leases and leases of low-value assets for which
simplified treatment is selected) is recognized as a lease liability, and a right-of-use asset is recognized based
on the sum of the present value of the lease liability, prepaid rent, and initial direct costs, and depreciation
and interest expenses are recognized separately.
When the Company becomes the lessee of a lease contract, for short-erm leases of less than one year without
a purchase option and leases with a value of less than 40,000 yuan (excluding sublease or expected sublease
assets), the Company elects to follow simplified treatment and record the related assets at cost or current
gain/loss on a straight-line basis over the lease period.
When the Company becomes the lessor of a lease contract, it classifies the lease into an operating lease and a
finance lease at the lease commencement date. A finance lease is a lease that transfers substantially all the
risks and rewards associated with the ownership of an asset. Operating leases are leases other than finance
leases. Rentals under operating leases are recognized as income on a straight-line basis over the lease term.
Finance leases are recorded at the net lease investment value of the finance lease receivable, which is the sum
of the unguaranteed residual value and the present value of the lease receipts not yet received as of the
commencement date of the lease term.
There are both leasing and non-leasing businesses in the contract and can be split, and the leasing business is
financially accounted according to the lease standards. There are both leasing and non-leasing businesses in
the contract and cannot be split, and the entire contract is included in the lease business for financial
accounting according to the lease standards.
The lease change needs to be judged whether it can be recognized as a single leasing business, and it needs to
be recognized separately if it meets the recognition conditions of a single lease; if it does not meet the
recognition of a single leasing business, or there is a major event or change within the controllable range of
the lessee, re-evaluate and measure the present value of lease liabilities, and adjust the book value of the
right-of-use asset accordingly. If the book value of the right-of-use asset has been reduced to zero, but the
lease liability still needs to be further reduced, the lessee shall include the remaining amount in the
corresponding expenses for the current period.
145
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
When the Company becomes the lessor of a lease contract, the lease is divided into operating lease and
finance lease on the start date of lease. A finance lease is a lease that transfers substantially all the risks and
rewards associated with ownership of an asset. An operating lease refers to a lease other than finance leases.
The rent of an operating lease is recognized as income on a straight-line basis during the lease term. For an
finance lease, the net investment in the lease is regarded as the entry value of the finance lease receivables,
and the net investment in the lease is the sum of the unguaranteed residual value and the present value of the
lease receipts that have not been received on the start date of the lease term.
32. 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
146
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
statements of the parent company when the investment in subsidiaries proposed to be sold satisfies the
conditions for being classified as held for sale; and all the assets and liabilities of the subsidiary shall be
classified as held for sale in the consolidated financial statements.
(4)If the net amount of fair value of non-current assets held for sale less sales expense on subsequent balance
sheet date increases, the amount previously reduced for accounting shall be recovered and reverted from the
impairment loss recognized after the asset is classified under the category of held for sale, with the amount
reverted recorded in profit or loss for the period. Impairment loss recognized before the asset is classified
under the category of held for sale shall not be reverted.
(5)For the amount of impairment loss on assets, the carrying value of disposal group’s goodwill shall be
offset against first, and then offset against the book value of non-current assets according to the proportion of
book value of non-current assets.
If the net amount of fair value of the disposal group held for sale on the subsequent balance sheet date less
sales expenses increases, the amount reduced for accounting in previous periods shall be restored, and shall
be reverted in the impairment loss recognized in respect of the non-current assets which are applicable to
relevant measurement provisions after classification into the category of held for sale, with the reverted
amount charged in profit or loss for the current period. The written-off carrying value of goodwill and
impairment loss of non-current assets which is recognized prior to classification into the category of held for
sale shall not be reverted.
The subsequent reversed amount in respect of the impairment loss on assets recognized in the disposal group
held for sale will increase the book value in proportion of the book value of each non-current asset (other
than goodwill) in the disposal group.
(6) The non-current assets in the non-current assets or disposal group held for sale is not depreciated or
amortized, and the debt interests and other fees in the disposal group held for sale continue to be recognized.
(7)If the non-current assets or disposal group are no longer classified as held for sale since they no longer
meet the condition of being classified as held for sale or the non-current assets are removed from the disposal
group held for sale, they will be measured at the lower of the following: 1) the amount after their book value
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.
33. Discontinued operation
A discontinued operation is a separately identified component of the Group that either has been disposed of
147
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
or is classified as held for sale, and satisfies one of the following conditions: (1) represents a separate major
line of business or geographical area of operations; (2) is part of a single co-ordinate plan to dispose of a
separate major line of business or geographical area of operations; and (3) is a subsidiary acquired
exclusively with a view to resale.
34. 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 tothe tax
laws on the events and transactions incurred in the current period. The deferred income tax refersto 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.
35. 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.
36. 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
148
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
directly used for sale, such as the goods in stock, the goods sent out, and the materials for sale, and the
low-consumption goods, shall be determined by the amount of the estimated selling price of the inventory
minus the estimated selling expenses and relevant taxes. The net realizable value of the material inventory
held for production is determined by the amount of the estimated selling price of the finished product
produced minus the estimated cost to be incurred at the time of completion, the estimated selling expenses
and relevant taxes.
(2) Accounting estimation on long-term assets impairment provision
The Company makes impairment test on fixed assets such as buildings, machine and equipment which have
impairment indication and long-term assets such as goodwill as at the balance sheet date. The recoverable
amount of relevant assets and assets group shall be the present value of the projected future cash flow which
shall be calculated with accounting estimation.
If the management amends the gross profit margin and discount rate adopted in calculation of future cash
flow of assets and assets group and the amended gross profit margin is lower than the currently adopted one
or the amended discount rate is higher than the currently adopted one, the Company needs to increase
provision of impairment provision. If the actual gross profit margin is higher (or the discount rate is lower)
than the estimation of management, the Company can not transfer back the long term assets impairment
provision provided already.
(3) Accounting estimation on realization of deferred income tax assets
Estimation on deferred income tax assets needs estimation on the taxable income and applicable tax rate for
each future year. Realization of deferred income tax assets depends on whether a company is able to obtain
sufficient taxable income in future. Change of future tax rate and switch back of temporary difference could
affect the balance of income tax expense (gains) and deferred income tax. Change of the aforesaid estimation
may result in material adjustment to deferred income tax.
(4) Usable term and residual value rate of fixed assets and intangible assets
The Company, at least at the end of each accounting year, reviews the projected usable life and residual value
rate of fixed assets and intangible assets. The projected usable life and residual value rate are determined by
the management based on the historical experiences of similar assets by reference to the estimation generally
used by the same industry with consideration on projected technical upgrade. If material change occurs to
previous estimation, the Company shall accordingly adjust the depreciation expenses and amortization
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
149
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
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.
37. 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.
38. 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 Relevant change of the accounting
Standards for Business Enterprise No.21- Lease, and the policy has been deliberated and
150
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Content and reasons Approval procedure Note
Company implemented the relevant accounting standards in approved by the 7th session of 10th
preparing its financial statements for the first half year of 2021 BOD
and in accordance with the relevant convergence provisions.
According to the Q&A with ASBE Concerned issued by The
Relevant change of the accounting
Accounting Regulatory Dept. Of Ministry of Finance on
policy has been deliberated and
November 2, 2021, relevant expenses related to transportation
approved by the 16th session of 10th
costs incurred to fulfill customer sales contracts will list under
BOD
the item of “operation cost” by the Company
Items and amounts of the statement items materially affected are as follows:
Consolidated statement Statement of parent company
Item affected 2020-12-31 2020-12-31 Amount
Amount 2021-1-1 2021-1-1
(before (before adjuste
adjusted (after changed) (after changed)
changed) changed) d
Right-of-use assets 9,818,834.44 9,818,834.44
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
Non-current
liability due within 407,825,150.74 5,000,280.67 412,825,431.41 407,141,888.08 407,141,888.08
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 38 (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
151
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
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
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%
Hebei Hongmao Daily Appliance Technology Co., Ltd. 15%
Anhui Tuoxing Technology Co., Ltd. 20%
Guangzhou Changhong Trading Co., Ltd. 20%
Anhui Ling'an 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
152
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
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 October 2021, 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 years term.
(7) The subsidiary Hong Yuan 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 Hebei Hongmao Daily Appliance Technology Co., Ltd. has passed the qualification of
high-tech enterprise certification on 18 September 2021, and enjoys 15% income tax rate for national payroll
technology enterprise for three years term.
153
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
(12) 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 consoli dated financial st atements
With respect to the financial statements figures disclosed below, unless otherwise specified, “year-beginning”
refers to Jan. 1, 2021; “year-end” refers to Dec. 31, 2021; “Current Year” refers to Jan. 1 to Dec. 31, 2021;
“the last year” refers to Jan. 1 to Dec. 31, 2020; the currency is RMB.
1. Monetary fund
Item Balance at year-end Balance at year-begin
Cash 28,447.21 35,088.07
Bank deposit 5,121,110,089.59 6,100,644,898.32
Other Monetary fund 805,215,921.34 484,232,497.85
Interest receivable on deposit 12,468,938.07 9,874,305.74
Total 5,938,823,396.21 6,594,786,789.98
Including: total amount deposited in overseas 8,156,154.33 11,293,949.64
Total use of restricted funds 86,159,526.57 159,382,669.14
Other monetary fund:
Item Balance at year-end Balance at year-begin
Cash deposit 776,959,862.25 444,087,381.64
B share repurchase 20,526,874.41 33,993,171.95
Frozen money 6,603,675.00
Account of foreign currency for verification 5,145,493.12
Co-managed account funds 504,702.66 503,170.44
Taobao account 74,572.96 486,333.43
154
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Item Balance at year-end Balance at year-begin
Union Pay online 546,234.06 16,947.27
Total 805,215,921.34 484,232,497.85
Cash deposit which serves as non cash and cash equivalents refers to the banking acceptance draft deposit with a term of over
three months, amounting to 77,591,356.87 yuan, cash deposit of the letter of credit amounting to 1,409,792.04 yuan, the
amount restricted for used in managed account was 504,702.66 yuan, bank deposits of 6,603,675.00 yuan frozen due to
litigation, China Union Pay, Taobao account and Ten Pay are all third party payment platforms for the deposit of 50,000.0 yuan
and interest receivable from deposits of 12,468,938.07 yuan, the remaining Monetary funds are treated as cash and cash
equivalents.
2. Tradable financial assets
Item Balance at year-end Balance at year-begin
Financial assets measured at fair value and whose changes are included
in current gains/losses 17,997,086.19 47,242,339.07
Including: Derivative financial assets 17,997,086.19 47,242,339.07
Tradable financial assets refers to the RMB forward exchange fund in Current Year
3. Note receivable
(1) Category of note receivable
Item Balance at year-end Balance at year-begin
Bank acceptance 2,216,752.22 13,023,329.01
Trade acceptance 335,880,000.00
Total 2,216,752.22 348,903,329.01
Less: Bad debt provision 8,481,942.30
Book value 2,216,752.22 340,421,386.71
(2) Notes endorsement or discount and undue on balance sheet date
Amount derecognition at Amount without
Item
year-end derecognition at year-end
Bank acceptance 200,000.00
Total 200,000.00
(3) Notes transfer to account receivable due for failure implementation by drawer at year-end
Item Amount of accounts receivable transferred at year-end
155
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Bank acceptance 300,000.00
Trade acceptance 125,482,407.02
Total 125,782,407.02
(4) By accrual of bad debt provision
Amount at year-end
Category Book balance Bad debt provision
Book value
Amount Ratio (%) Amount Ratio (%)
With bad debt provision accrual on single item 2,216,752.22 100.00 2,216,752.22
Including: Bank acceptance 2,216,752.22 100.00 2,216,752.22
With bad debt provision accrual on portfolio
Including: Trade acceptance
Total 2,216,752.22 100.00 2,216,752.22
Continued
Amount at year-begin
Category Book balance Bad debt provision
Book value
Amount Ratio (%) Amount Ratio (%)
With bad debt provision
accrual on single item 13,023,329.01 3.73 300,000.00 2.30 12,723,329.01
Including: Bank acceptance 13,023,329.01 3.73 300,000.00 2.30 12,723,329.01
With bad debt provision
accrual on portfolio 335,880,000.00 96.27 8,181,942.30 2.44 327,698,057.70
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
Balance at year-end
Name Bad debt
Book balance Provision ratio (%) Provision reason
provision
Minimal risk, holding maturity
Bank acceptance 2,216,752.22
acceptance
Total 2,216,752.22
Continued
Balance at year-begin
Name Bad debt
Book balance Provision ratio (%) Provision reason
provision
156
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Balance at year-begin
Name Bad debt
Book balance Provision ratio (%) Provision reason
provision
Minimal risk, holding maturity
Bank acceptance 12,723,329.01
acceptance
Bank acceptance The bill has been collected by the
300,000.00 300,000.00 100.00 bank
Total 13,023,329.01 300,000.00 — —
2) Note receivable withdrawal bad debt provision by combination
Balance at year-begin
Account age Bad debt
Note receivable Provision ratio (%)
provision
Within 3 months (3 months included) 282,289,530.00 2,822,895.30 1.00
More than 3 months and less than 6 months (6
months included) 53,590,470.00 5,359,047.00 10.00
Total 335,880,000.00 8,181,942.30
(5) Bad debt provision of note receivable that has been accrued, withdrawn, and reversed this year
This year, note receivable with bad debt provision accrual amount as -8,481,942.30 yuan. No note receivable that has been
written off in previous years has been recovered this year.
(6) No note receivable actually written off in this year.
4. Account receivable
(1) Category of account receivable by bad debt accrual
Amount at year-end
Category Book balance Bad debt provision
Ratio Ratio Book value
Amount Amount
(%) (%)
Account receivable that withdrawal bad debt
822,475,594.55 53.40 25,372,653.49 3.08 797,102,941.06
provision by single item
Including: current payment with related party 754,228,757.41 48.97 4,149,753.85 0.55 750,079,003.56
Account receivable with letter of credit 47,023,937.50 3.05 47,023,937.50
Account receivable with single minor amount but
withdrawal single item bad debt provision 21,222,899.64 1.38 21,222,899.64 100.00
Account receivable withdrawal bad debt
717,853,201.83 46.60 74,081,451.61 10.32 643,771,750.22
provision by portfolio
Including: account receivable of engineering
customers 191,420,885.49 12.43 15,308,246.27 8.00 176,112,639.22
157
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Amount at year-end
Category Book balance Bad debt provision
Ratio Ratio Book value
Amount Amount
(%) (%)
Receivables other than engineering customers 526,432,316.34 34.17 58,773,205.34 11.16 467,659,111.00
Total 1,540,328,796.38 100.00 99,454,105.10 6.46 1,440,874,691.28
Continued
Amount at year-begin
Category Book balance Bad debt provision
Ratio Book value
Amount Ratio (%) Amount
(%)
Account receivable that withdrawal bad debt
523,379,846.95 43.52 25,905,935.37 4.95 497,473,911.58
provision by single item
Including: current payment with related party 397,745,724.79 33.07 3,943,524.26 0.99 393,802,200.53
Account receivable with letter of credit 72,037,362.43 5.99 72,037,362.43
Account receivable with single minor amount but
withdrawal single item bad debt provision 53,596,759.73 4.46 21,962,411.11 40.98 31,634,348.62
Account receivable withdrawal bad debt
679,107,003.09 56.48 46,305,134.01 6.82 632,801,869.08
provision by portfolio
Including: account receivable of engineering
customers 173,638,731.59 14.44 13,008,672.00 7.49 160,630,059.59
Receivables other than engineering customers 505,468,271.50 42.04 33,296,462.01 6.59 472,171,809.49
Total 1,202,486,850.04 100.00 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, 71 clients involved.
2) Account receivable withdrawal bad debt provision by portfolio
A.Account receivable of engineering customers
Balance at year-end
Account age Bad debt
Book balance Provision ratio (%)
provision
Within 3 months (3 months included) 47,442,159.78
More than 3 months and less than 6 months (6
66,786,580.82
months included)
Over 6 months and within one year (One year
24,376,909.49
included)
158
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Balance at year-end
Account age Bad debt
Book balance Provision ratio (%)
provision
Over one year - within 2 years (2 years included) 38,592,189.76 7,718,437.95 20.00
Over 2 years - within 3 years (3 years included) 13,266,474.64 6,633,237.32 50.00
Over 3 years 956,571.00 956,571.00 100.00
Total 191,420,885.49 15,308,246.27
Continued
Balance at year-begin
Account age Bad debt
Book balance Provision ratio (%)
provision
Within 3 months (3 months included) 67,204,732.79
More than 3 months and less than 6 months (6
7,907,641.48
months included)
Over 6 months and within one year (One year
45,690,126.79
included)
Over one year - within 2 years (2 years included) 44,698,144.23 8,939,628.85 20.00
Over 2 years - within 3 years (3 years included) 8,138,086.30 4,069,043.15 50.00
Over 3 years 100.00
Total 173,638,731.59 13,008,672.00 —
B.Receivables other than engineering customers
Balance at year-end
Account age Bad debt
Book balance Provision ratio (%)
provision
Within 3 months (3 months included) 299,994,550.94 2,999,945.51 1.00
More than 3 months and less than 6 months (6
68,972,844.55 6,897,284.46 10.00
months included)
Over 6 months and within one year (One year
126,004,879.57 25,200,975.91 20.00
included)
Over one year - within 2 years (2 years included) 12,130,576.34 6,065,288.17 50.00
Over 2 years - within 3 years (3 years included) 8,598,768.25 6,879,014.60 80.00
Over 3 years 10,730,696.69 10,730,696.69 100.00
Total 526,432,316.34 58,773,205.34
159
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Continued
Balance at year-begin
Account age Bad debt
Book balance Provision ratio (%)
provision
Within 3 months (3 months included) 412,523,951.50 4,125,239.52 1.00
More than 3 months and less than 6 months (6
39,054,407.32 3,905,440.73 10.00
months included)
Over 6 months and within one year (One year
20,517,859.18 4,103,571.84 20.00
included)
Over one year - within 2 years (2 years included) 19,648,475.02 9,824,237.51 50.00
Over 2 years - within 3 years (3 years included) 11,928,030.36 9,542,424.29 80.00
Over 3 years 1,795,548.12 1,795,548.12 100.00
Total 505,468,271.50 33,296,462.01
(2) By account age
Account age Balance at year-end Balance at year-begin
Within 3 months (3 months included) 1,081,226,013.94 827,575,650.32
More than 3 months and less than 6 months (6 months included) 162,654,138.54 114,077,060.79
Over 6 months and within one year (One year included) 179,880,109.29 81,325,161.45
Over one year - within 2 years (2 years included) 63,134,405.85 134,016,062.26
Over 2 years - within 3 years (3 years included) 23,736,943.93 32,482,491.24
Over 3 years 29,697,184.83 13,010,423.98
Total 1,540,328,796.38 1,202,486,850.04
(3) Bad debt provision of accounts receivable this year
Balance at
Changes this year
Balance at year-end
Category
year-begin Withdrawal Resale or Other
Accrual
or reversal write-off decreases
Bad debt
provision 72,211,069.38 32,475,930.97 3,245,314.13 1,987,581.12 99,454,105.10
Total 72,211,069.38 32,475,930.97 3,245,314.13 1,987,581.12 99,454,105.10
(4) Account receivable actually written-off in Current Year: nil
160
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
(5) Top five receivables collected by arrears party amounting to 957,618,825.54 yuan in total, accounted for
62.17% of the receivables of current year-end, the bad debt provision accrual correspondingly amounting to
28,699,803.66 yuan at year-end balance.
(6) Account receivable terminated recognization due to the transfer of financial assets of 528,273,051.54
yuan.
(7) No assets and liability transfer Account receivable and continues to involve at year-end.
5. Receivables financing
Item Balance at year-end Balance at year-begin
Bank acceptance 1,808,109,301.56 1,632,388,702.83
Total 1,808,109,301.56 1,632,388,702.83
(1) Notes receivable already pledged that presented in receivables financing at the end of the year:
Item Amount pledged at year-end Amount pledged at year-begin
Bank acceptance 385,477,263.99 548,295,149.14
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. 60. Assets with restricted ownership or
use rights.
(2) Notes endorsement or discount and undue on balance sheet date listed in receivables financing at the end
of the year
Amount derecognition at Amount without
Item
year-end derecognition at year-end
Bank acceptance 985,023,966.40
Total 985,023,966.40
6. Accounts paid in advance
(1) Age of account paid in advance
Balance at year-end Balance at year-begin
Item
Amount Ratio (%) Amount Ratio (%)
Within one year 28,208,857.49 94.77 29,388,065.57 97.73
1-2 years 1,557,939.85 5.23 393,517.42 1.31
2-3 years 25,000.00 0.08
161
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Balance at year-end Balance at year-begin
Item
Amount Ratio (%) Amount Ratio (%)
Over 3 years 263,720.07 0.88
Total 29,766,797.34 100.00 30,070,303.06 100.00
(2) Top 5 of account paid in advance in balance at year-end amounting to 20,834,178.36 yuan, accounted for
69.99% of the account.
7. Other account receivable
Item Balance at year-end Balance at year-begin
Other account receivable 111,652,635.86 145,705,978.26
Total 111,652,635.86 145,705,978.26
(1) Category of other account receivable
Nature Book balance at year-end Book balance at year-begin
Export rebate 26,634,190.54 32,281,664.19
Cash deposit 70,481,345.37 77,754,290.83
Loans of employee’s pretty cash 12,299,111.06 14,876,565.98
Related party not in consolidation statement 718,189.14 3,241,296.82
Advance money temporary 355,045.58 65,938.41
Other 2,289,144.60 18,375,974.37
Total 112,777,026.29 146,595,730.60
(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 for the whole
duration (credit
in 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 Year as at 1 — — — —
Jan. 2021
--Transfer to the second stage
-- Transfer to the third stage
-- Reversal to the second stage
-- Reversal to the first stage
162
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
First stage Second stage Third stage
Expected credit loss
Expected Expected credit loss
Bad debt provision for the whole Total
credit loss for the whole
duration (credit
in next 12 duration (no credit
impairment has
months impairment)
occurred)
Provision in Current Year 235,222.39 235,222.39
Reversal in Current Year
Conversion in Current Year
Write off in Current Year
Other change -584.30 -584.30
Balance as at 31 Dec. 2021 1,074,390.43 50,000.00 1,124,390.43
(3) By account age
Account age Balance at year-end Balance at year-begin
Within 3 months (3 months included) 50,798,283.74 91,920,859.60
More than 3 months and less than 6 months (6 months included) 15,511,159.70 22,540,450.31
Over 6 months and within one year (One year included) 7,875,791.66 19,585,237.13
Over one year - within 2 years (2 years included) 28,844,885.97 5,705,751.39
Over 2 years - within 3 years (3 years included) 4,113,598.75 2,756,045.96
Over 3 years 5,633,306.47 4,087,386.21
Total 112,777,026.29 146,595,730.60
(4) Top 5 other receivables collected by arrears party at balance of period-end
Proportion in total other receivables Bad debt
Nam Balance at ending balance (%) provision
Nature Account age
e year-end Balance at
year-end
Tax
Unit I 26,634,190.54 Within 3 months 23.62
rebate
Unit Cash
8,780,849.40 Within 1-2 years 7.79
II deposit
Unit Cash
7,260,000.00 Within 3-6 months 6.44
III deposit
6 months-Within
Unit Cash
5,862,175.00 one year，Within 5.20
IV deposit
1-2 years
163
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Proportion in total other receivables Bad debt
Nam Balance at ending balance (%) provision
Nature Account age
e year-end Balance at
year-end
Unit Cash Within 3 months，
3,692,993.00 3.27
V deposit Within 1-2 years
Total — 52,230,207.94 46.31
(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
Amount at year-end
Item
Inventory price decline provision/contract performance cost impairment
Book balance Book value
provision
Raw materials 129,438,627.36 8,482,723.94 120,955,903.42
Stock commodities 828,837,153.50 51,052,406.21 777,784,747.29
Low value consumable 5,564,313.19 954,827.34 4,609,485.85
articles
Goods in transit 295,059,984.05 8,068,827.90 286,991,156.15
Goods-in-process 5,351,870.75 5,351,870.75
Contract performance cost 123,275,655.95 241,230.88 123,034,425.07
Deferred expense for mould 37,629,831.27 37,629,831.27
Total 1,425,157,436. 68,800,016.27 1,356,357,419.
Continued
Amount at year-begin
Item
Inventory price decline 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
5,946,757.68 916,206.67 5,030,551.01
articles
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
164
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
(2) Provision for inventory depreciation and contract performance cost impairment provision
Increase this year Decrease this year Amount at
Item Amount at year-begin
Accrual Other Reversal or reselling Other year-end
Raw materials 9,729,874.26 4,297,953.10 5,545,103.42 8,482,723.94
Stock commodities 73,930,262.61 34,300,198.57 57,176,255.48 1,799.49 51,052,406.21
Goods in transit 9,702,391.49 16,130,782.25 17,764,345.84 8,068,827.90
Low value consumable articles 916,206.67 140,176.29 101,555.62 954,827.34
Contract performance cost 97,462.80 202,984.62 59,216.54 241,230.88
Total 94,376,197.83 55,072,094.83 80,646,476.90 1,799.49 68,800,016.27
(3) Accrual for inventory falling price reserves
Reasons for the reversal or
Item Specific basis for determining of net realizable value
reselling in Current Year
Cost is higher than net realizable value (The processed products
Raw materials For production
are decline)
Cost is higher than net realizable value (The market price at
Stock commodities For sale
period-end fell)
Cost is higher than net realizable value (The market price at
Goods in transit For sale
period-end fell)
Low value
Cost is higher than net realizable value Already used
consumable articles
Contract Engineering construction Cost is higher than net realizable value
Already used
performance cost (The processed products are decline)
9. Other current assets
Item Balance at year-end Balance at year-begin
Value-added tax to be deducted 110,346,536.34 181,882,278.05
Advance payment of income tax 6,114,297.55 9,506,261.78
Pakistan local sales tax 2,453,792.84
Contract acquisition cost 7,740,783.12 4,511,132.31
Prepaid disability insurance 39,317.44
Total 124,240,934.45 198,353,464.98
165
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
10. Long-term equity investment
Changes in Current Year Balanc
e at
Balance at Additio Investment profit Other Provisi Balance at year-en
Invested enterprise Other Declaration of
year-begin nal Disinve and loss comprehen on for Othe year-end d of
changes cash dividends
investm stment confirmed by sive income impair r impair
of equity or profits
ent equity method adjustment ment ment
Associated companies
1.Hefei Xingmei Assets Management Co.,
6,826,274.99 13,009,091.85 19,835,366.84
Ltd.
2.Sichuan Zhiyijia Network Technology
39,163,339.54 -3,923,697.48 -130,171.30 1,025,445.14 34,084,025.62
Co., Ltd. note1
3.Hong Yuan Ground Energy Heat Tech.
22,103,109.57 -1,472,995.40 20,630,114.17
Co., Ltd.note2
4.Sichuan Tianyou Guigu Technology
2,850,091.51 124,097.43 2,974,188.94
Co., Ltd.note3
5.Chengdu Guigu Environmental Tech.
6,040,006.77 3,067,958.19 9,107,964.96
Co., Ltd.note4
6.Changhong Ruba
Electric Company (Private) Ltd.note5
7.Hefei Meiling Solar Energy Technology
1,617,928.00 1,617,928.00
Co., Ltd.note6
Total 76,982,822.38 12,422,382.59 -130,171.30 2,643,373.14 86,631,660.53
166
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
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%.
Note 2: subsidiary Sichuan Changhong Air Conditioner Co., Ltd (“Changhong Air Conditioner”) and Hengyou yuan
Technology Development Group Co., Ltd. (“Hengyou yuan”) cooperated to establish Hong Yuan 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 Hengyou
yuan 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 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%.
167
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
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.
11. Other non-current financial assets
Item Balance at year-end Balance at year-begin
Sichuan Changhong Group Finance Co., Ltd. 532,961,488.43 500,000,000.00
Huishang Bank Co., Ltd. 5,000,000.00 5,000,000.00
Hongyun Fund 44,018,952.27 43,148,931.34
Total 581,980,440.70 548,148,931.34
12. Investment real estate
(1) Investment real estate measured at costs
Item House and buildings Total
I.Original book value
1.Balance at year-begin 59,512,503.29 59,512,503.29
2.Increase in this year 1,176,028.81 1,176,028.81
(1) Construction in progress transfer-in 1,176,028.81 1,176,028.81
3.Decrease in this year
4.Balance at year-end 60,688,532.10 60,688,532.10
II.Accumulated depreciation and accumulated amortization
1.Balance at year-begin 5,624,041.29 5,624,041.29
2.Increase in this year 1,914,556.36 1,914,556.36
(1)Provision or amortization 1,914,556.36 1,914,556.36
3.Decrease in this year
4.Balance at year-end 7,538,597.65 7,538,597.65
III.Impairment provision
IV.Book value
1.Ending book value 53,149,934.45 53,149,934.45
2. Opening book value 53,888,462.00 53,888,462.00
(2) No investment real estate measured by fair value at year-end.
(3) Particular about mortgage of investment property at year-end.
Accumulated Impairment
Name Original book value Book value
depreciation provision
House and buildings 5,795,017.72 2,336,016.52 3,459,001.20
168
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
(4) Investment real estate without property certification held
Item Book value Reasons for failing to complete property rights certificate
J04workshop 28,598,032.80 Related property rights in procedure
J03workshop 18,358,458.77 Related property rights in procedure
J20 air compressor station workshop 1,213,194.45 Related property rights in procedure
J18 opening and closing office 561,651.76 Related property rights in procedure
Total 48,731,337.78
13. Fixed assets
Item Ending book value Opening book value
Fixed assets 2,227,247,182.81 2,315,983,923.20
Disposal of fixed assets 75,875,517.11 75,875,517.11
Total 2,303,122,699.92 2,391,859,440.31
13.1 Fixed assets
(1) Fixed assets
House and Machinery Transport Other
Item Total
buildings equipment equipment equipment
I.Original book
value
1.Balance at
1,662,291,191.07 1,728,214,888.97 34,401,220.30 203,184,998.75 3,628,092,299.09
year-begin
2.Increase in this
27,873,556.43 108,970,655.97 714,358.12 21,392,088.70 158,950,659.22
year
(1)Purchase 456,948.23 7,962,320.28 340,818.29 12,884,220.36 21,644,307.16
(2)Construction in
27,277,561.53 100,990,366.69 373,539.83 8,507,868.34 137,149,336.39
progress transfer-in
(3)Transfer-in of
investment real estate
(4)Temporary
139,046.67 17,969.00 157,015.67
estimated increase
3.Decrease in this
1,494,549.93 68,476,976.78 649,660.08 4,317,356.42 74,938,543.21
year
(1)Dispose or
1,361,476.03 33,803,574.68 458,424.49 3,865,850.64 39,489,325.84
retirement
(2)Construction in
34,624,899.67 34,624,899.67
progress transfer-in
(3)Decreased for
191,235.59 411,446.06 602,681.65
change of foreign rate
(4)Temporary
133,073.90 48,502.43 40,059.72 221,636.05
estimated decrease
4.Balance at
1,688,670,197.57 1,768,708,568.16 34,465,918.34 220,259,731.03 3,712,104,415.10
year-end
II.Accumulated
depreciation
169
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
House and Machinery Transport Other
Item Total
buildings equipment equipment equipment
1.Balance at
351,313,535.78 856,306,300.29 19,765,302.96 82,704,782.54 1,310,089,921.57
year-begin
2.Increase in this
53,129,495.61 145,051,493.75 2,867,992.63 18,642,556.39 219,691,538.38
year
(1)Accrual 53,129,495.61 145,051,493.75 2,867,992.63 18,642,556.39 219,691,538.38
(2)Transfer-in of
investment real estate
3.Decrease in this
301,054.04 42,299,108.90 473,023.89 3,252,617.32 46,325,804.15
year
(1)Dispose or
301,054.04 31,581,962.79 366,211.73 3,138,954.42 35,388,182.98
retirement
(2)Construction in
10,717,146.11 10,717,146.11
progress transfer-in
(3)Decreased for
106,812.16 113,662.90 220,475.06
change of foreign rate
4.Balance at
404,141,977.35 959,058,685.14 22,160,271.70 98,094,721.61 1,483,455,655.80
year-end
III.Impairment
provision
1.Balance at
1,877,839.70 140,614.62 2,018,454.32
year-begin
2.Increase in this
year
3.Decrease in this
616,877.83 616,877.83
year
(1)Dispose or
616,877.83 616,877.83
retirement
(2)Construction in
progress transfer-in
4.Balance at
1,260,961.87 140,614.62 1,401,576.49
year-end
IV.Book value
1.Ending book
1,284,528,220.22 808,388,921.15 12,305,646.64 122,024,394.80 2,227,247,182.81
value
2. Opening book
1,310,977,655.29 870,030,748.98 14,635,917.34 120,339,601.59 2,315,983,923.20
value
The new fixed assets in this year mainly due to the 137,149,336.39 yuan transfer from construction in process; decrease
of the fixed assets in Current Year mainly including assets dispose for retirement.
(2) No fixed assets temporary idle at year-end.
(3) Fixed assets for collateral at year-end
Accumulated Impairment
Name Original book value Book value
depreciation provision
House and buildings 474,545,282.09 124,871,874.37 349,673,407.72
(4) Fixed assets leased through operating lease at year-end
170
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Item Original book value Accumulated depreciation Impairment provision Book value
House and buildings 67,661,253.29 20,048,471.94 47,612,781.35
Machinery equipment 32,932,620.94 10,232,730.25 22,699,890.69
Other equipment 10,720.00 10,184.00 536.00
Total 100,604,594.23 30,291,386.19 70,313,208.04
(5) Fixed assets without property certificate
Item Book value Reason of not complete the property certificate
Testing and experiment center building 38,588,047.76 Related property rights in procedure
J07 electrical workshop 33,682,983.47 Related property rights in procedure
J02workshop 30,239,384.12 Related property rights in procedure
J01workshop 28,027,990.46 Related property rights in procedure
J05 evaporator and condenser workshop 26,372,329.92 Related property rights in procedure
II section canteen of living area 20,614,359.90 Related property rights in procedure
J06 central air-conditioner workshop 17,034,660.18 Related property rights in procedure
J50finished product warehouse 16,090,883.18 Related property rights in procedure
J51finished product warehouse 15,573,450.46 Related property rights in procedure
J53finished product warehouse 11,968,460.80 Related property rights in procedure
J54finished product warehouse 11,130,633.03 Related property rights in procedure
J52finished product warehouse 11,112,957.83 Related property rights in procedure
J55finished product warehouse 10,195,718.66 Related property rights in procedure
J56finished product warehouse 10,195,718.66 Related property rights in procedure
J09raw material warehouse 6,069,550.34 Related property rights in procedure
J10raw material warehouse 4,741,649.23 Related property rights in procedure
J11raw material warehouse 4,657,090.87 Related property rights in procedure
4# makeshift shelter 4,555,173.03 Related property rights in procedure
J08 packing materials warehouse 4,414,405.94 Related property rights in procedure
J15 house of refrigerant forklift 1,281,278.22 Related property rights in procedure
J17 chemical storage 1,258,306.28 Related property rights in procedure
J16 chemical storage 1,150,603.82 Related property rights in procedure
J19 main guard room 316,282.69 Related property rights in procedure
J19A guard room 199,757.98 Related property rights in procedure
J19D guard room 146,138.64 Related property rights in procedure
J19E guard room 146,138.64 Related property rights in procedure
Total 309,763,954.11
171
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
(6) No fixed assets held for sale at year-end
13.2 Disposal of fixed assets
Reasons for
Item Amount at year-end Amount at year-begin disposal
transferred
Relocation for
Relevant assets disposal for reserved lands 75,875,517.11 75,875,517.11
land 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 year-end.
14. Construction in progress
Item Balance at year-end Balance at year-begin
Construction in progress 98,469,862.45 60,775,088.96
Total 98,469,862.45 60,775,088.96
(1) Details of construction in progress
Amount at year-end Amount at year-begin
Item Impairment Book Impairment
Book balance Book value Book value
provision balance provision
Front-end expansion project of Hefei
base with an annual output of 10 million 16,686,639.69 16,686,639.69 1,304,336.29 1,304,336.29
refrigerator cabinets
2021Manufacturing System Automation
13,973,307.43 13,973,307.43
Project (Phase 1)
172
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Amount at year-end Amount at year-begin
Item Impairment Book Impairment
Book balance Book value Book value
provision balance provision
Industrial Internet Changhong Meiling
10,480,730.43 10,480,730.43
Promotion Project
Liquid nitrogen tank production line
6,778,105.41 6,778,105.41
construction project
2022 Air Conditioning Company
Manufacturing System Capacity and 6,419,964.72 6,419,964.72
Capacity Improvement Project
Refrigerator cabinet efficiency
4,704,867.17
improvement project 4,704,867.17
Technical transformation project of
4,530,389.50 4,530,389.50 6,926,902.64 6,926,902.64
Zhongshan Changhong
Comprehensive renovation project of
mixed flow of rainwater and sewage in 4,385,756.91 4,385,756.91
freezer park and living area
Meiling extrusion line relocation and
3,875,215.73 3,875,215.73
capacity expansion project
Overseas product upgrade supporting box
shell line, door shell line and some old
3,731,036.22 3,731,036.22 9,837,906.27 9,837,906.27
product competitiveness improvement
projects
The third floor testing and packaging line
2,707,964.62 2,707,964.62
technical transformation project
Washing machine business unit MES
2,457,735.83 2,457,735.83 1,670,775.59 1,670,775.59
system online project
Meiling PLM Project 1,636,792.46 1,636,792.46
The fourth-phase unmanned vending
machine and large-volume commercial 4,049,896.54
4,049,896.54
cabinet production line project of the
freezer manufacturing company
Meiling Living Area Apartment
3,587,155.98 3,587,155.98
Renovation Project
Construction of washing machine plant 3,097,203.54 3,097,203.54
Changhong Air Conditioner- relocation
of production base and upgrading & 2,942,756.39 2,942,756.39
expansion
New overseas case molding line project 2,404,757.10 2,404,757.10
Capacity enlargement and technology
improvement project for Air-conditioner 1,724,400.82 1,724,400.82
Company
Construction of laboratory (inspection
1,623,019.14 1,623,019.14
center)
Other petty projects 16,101,356.33 16,101,356.33 21,605,978.66 21,605,978.66
Total 98,469,862.45 98,469,862.45 60,775,088.96 60,775,088.96
(2) Changes in significant construction in progress
173
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Transfer to
Book
fixed assets
balance at Increase in Other decrease Book balance Sourceof
Projects period-begi Current Year in Current at year-end funds
n
Year
Changhong Air
Conditioner- relocation Self-rais
2,942,756.39 9,821,353.24 9,859,406.34 2,904,703.29
of production base and ed
upgrading & expansion
Construction of washing Self-rais
3,097,203.54 2,891,057.71 5,988,261.25
machine plant ed/ Raise
Construction of
laboratory (inspection 1,623,019.14 863,813.82 2,486,832.96 Raise
center)
Front-end expansion
project of Hefei base
Self-rais
with an annual output of 1,304,336.29 21,002,568.89 5,507,433.63 112,831.86 16,686,639.69
ed
10 million refrigerator
cabinets
(Continued)
including: Interest
Proportion of Accumulated interest capitaliza
Budget (In 10
project Progres amount of capitalized tion rate
Projects thousand
investment in s interest amount of of
yuan)
budget capitalization Current Current
Year Year
Changhong Air Conditioner-
relocation of production base 84,791.01 87.88% 99.50% 2,570,143.02
and upgrading & expansion
Construction of washing
37,121.00 99.37% 100.00%
machine plant
Construction of laboratory
10,748.00 86.77% 100.00%
(inspection center)
Front-end expansion project
of Hefei base with an annual
4,121.24 54.13% 60.00%
output of 10 million
refrigerator cabinets
15. Right-of-use assets
Item House and buildings Total
I.Original book value
1.Balance at year-begin 9,818,834.44 9,818,834.44
2.Increase in this year 44,252,371.53 44,252,371.53
(1) Rent in 44,252,371.53 44,252,371.53
3. Decrease in this year
4.Balance at year-end 54,071,205.97 54,071,205.97
174
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Item House and buildings Total
II.Accumulated depreciation
1.Balance at year-begin
2. Increase in this year 8,703,287.66 8,703,287.66
(1)Accrual 8,703,287.66 8,703,287.66
3. Decrease in this year
4.Balance at year-end 8,703,287.66 8,703,287.66
III.Impairment provision
1.Balance at year-begin
2. Increase in this year
3. Decrease in this year
4.Balance at year-end
IV.Book value
1.Ending book value 45,367,918.31 45,367,918.31
2. Opening book value 9,818,834.44 9,818,834.44
The Company accrual the depreciation on right-of-use assets from the commencement date of the lease period.
Depending on use of the assets, amount of accrual will included in costs of relevant assets or current gain/loss.
16. Intangible assets
(1) Intangible assets
Trademark Non-patent
Item Land use right Other Total
special right technology
I.Original book
value
1.Balance at
869,724,297.57 283,292,439.34 532,983,550.68 61,676,492.32 1,747,676,779.91
year-begin
2.Increase in this
96,213,935.50 75,577,305.10 171,791,240.60
year
(1)Purchase 1,213,441.91 1,213,441.91
(2) Internal research 95,000,493.59 75,577,305.10 170,577,798.69
(3)Transfer-in of
investment real estate
(4)Other
3.Decrease in this
80,052,685.51 80,052,685.51
year
(1) Disposal 80,052,685.51 80,052,685.51
(2)Other decreases
175
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Trademark Non-patent
Item Land use right Other Total
special right technology
4.Balance at
869,724,297.57 283,292,439.34 549,144,800.67 137,253,797.42 1,839,415,335.00
year-end
II.Accumulated
amortization
1.Balance at
179,982,060.86 283,292,439.34 308,164,231.17 8,457,055.13 779,895,786.50
year-begin
2.Increase in this
18,491,879.00 110,061,197.59 18,728,752.65 147,281,829.24
year
(1)Accrual 18,491,879.00 110,061,197.59 18,728,752.65 147,281,829.24
(2)Transfer-in of
investment real estate
3.Decrease in this
69,677,546.64 69,677,546.64
year
(1) Disposal 69,677,546.64 69,677,546.64
(2)Other decreases
4.Balance at
198,473,939.86 283,292,439.34 348,547,882.12 27,185,807.78 857,500,069.10
year-end
III.Impairment
provision
1.Balance at
26,420,977.43 4,508,495.33 30,929,472.76
year-begin
2.Increase in this
7,957,831.68 7,957,831.68
year
3.Decrease in this
10,375,138.87 10,375,138.87
year
4.Balance at
24,003,670.24 4,508,495.33 28,512,165.57
year-end
IV.Book value
1.Ending book value 671,250,357.71 176,593,248.31 105,559,494.31 953,403,100.33
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 9.27% of the balance of intangible assets at year-end
(2) No land use right without property certification done at year-end
(3) Up to end of the 2021, mortgage of intangible assets is as follows:
N
Name Property certificate serials Area(M2) Net book value ot
e
Land use right HGYJCZi No.: 0121 27,120.22 17,071,247.36
Wan (2019) Property right of Hefei No.:
1148244/1148249/1148243/1148240/1148248/1148
Land use right 477,550.03 232,661,191.12
246/1148241/1148238/1149101/1148242/1148245/
1148239/1148237/1148250/1148247/1149102
Wan (2019) Property right of Feixi County No.:
Land use right 33,383.10 13,205,239.61
0061435/0061445
176
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
N
Name Property certificate serials Area(M2) Net book value ot
e
Wan (2019) Property right of Feixi County No.:
Land use right 0061456/0061447/0061438/0061440/0061452/006 82,850.51 18,191,410.79
1450/0061430/0061657
Total 620,903.86 281,129,088.88
17. Development expense
Increase this year Decrease this year
Balance at Internal Included in Balance at
Item Confirmed as
year-begin development Oth current profits Oth year-end
er intangible assets er
expenditure and losses
Technology
development 27,997,731.79 114,141,979.12 1,125,286.59 101,076,009.29 39,938,415.03
for Air-conditioner
Technology
development 45,030,709.77 72,523,243.17 261,587.71 69,501,789.40 47,790,575.83
for refrigerator
Total 73,028,441.56 186,665,222.29 1,386,874.30 170,577,798.69 87,728,990.86
18. Goodwill
(1) Original value of goodwill
Increase this year Decrease this year
Formatio Formatio
Invested enterprise Balance at n from n from Balance at
year-begin Other Other year-end
enterprise enterprise
merger merger
Hefei Meiling Group Holdings
3,553,367.77 3,553,367.77
Limited
Total 3,553,367.77 3,553,367.77
(2) Impairment loss of goodwill
Balance at Increase this year Decrease this year Balance at
Invested enterprise
year-begin Accrual Other Accrual Other year-end
Hefei Meiling Group
3,553,367.77 3,553,367.77
Holdings Limited
Total 3,553,367.77 3,553,367.77
Note: The Company’s goodwill has been fully accrued for impairment reserves at year-end.
19. Deferred income tax assets
177
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
(1) Deferred income tax assets without the offset
Balance at year-end Balance at year-begin
Deductible Deferred Deductible Deferred
Item
temporary income tax temporary income tax
difference assets difference assets
Deferred income tax assets recognized
145,988,355.30 21,966,046.25 122,853,362.96 18,427,787.28
from assets impairment
Deferred income tax assets recognized
11,363,601.65 1,704,540.25 55,035,910.31 8,255,386.55
from accrual liability
Deferred income tax assets recognized
11,268,982.33 1,690,347.35 13,326,014.64 1,998,902.20
from Dismission welfare
Deferred income tax assets recognized
110,534,463.54 16,580,169.53 107,392,156.36 16,108,823.46
from deferred income
Deferred income tax assets recognized from
695,409,549.32 104,311,432.40 545,833,222.08 81,874,983.31
ir-reparable losses
Accrued income tax assets 8,238,783.30 1,235,817.50 3,467,314.27 520,097.14
Total 982,803,735.44 147,488,353.28 847,907,980.62 127,185,979.94
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 2022, and the Company also confirmed deferred income
tax assets while confirming the impairment provisions. The subsidiaries have unrecovered losses, at the consolidation
level, the deferred income tax assets recognized in the Company’s long-term equity investment impairment provisions
are adjusted to be the deferred income tax assets generated from the recoverable losses.
(2) Deferred income tax liabilities without the offset
Balance at year-end Balance at year-begin
Item Taxable Deferred Taxable Deferred
temporary income tax temporary income tax
differences liability differences liability
Recognized by fixed assets depreciation 23,595,650.26 3,539,347.53 29,817,828.77 4,472,674.32
Recognized by changes in fair value 40,873,919.41 6,131,087.92 40,686,053.41 6,102,908.01
Total 64,469,569.67 9,670,435.45 70,503,882.18 10,575,582.33
(3) Details of unrecognized deferred income tax assets
Item Balance at year-end Balance at year-begin
Deductible temporary difference 94,823,765.42 110,167,308.91
Deductible loss 1,075,371,859.07 880,692,110.28
Total 1,170,195,624.49 990,859,419.19
20. Other non-current assets
Item Balance at year-end Balance at year-begin
178
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Item Balance at year-end Balance at year-begin
Prepaid equipment, engineering, etc. 3,087,780.59
Total 3,087,780.59
21. Short-term loans
Category Balance at year-end Balance at year-begin
Loan in pledge 100,000,000.00
Guaranteed loan 5,000,000.00 66,180,000.00
Loan in credit 615,000,000.00 904,237,500.00
Bill financing 257,880,000.00
Interest payable 2,874,652.77 7,911,550.55
Total 622,874,652.77 1,336,209,050.55
Short-term loans at year-end:
1) 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 March 2021 to 1 March 2022. Fixed annual interest rate of 3.45%, the loan amount
is 30,000,000.00 yuan.
2) 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 March 2021 to 23 March 2022.
Loan rate of 3.55%, the loan amount is 100,000,000.00 yuan.
3) The Company entered into a Loan Contract with Hefei Luyang Branch of Hangzhou Bank Co., Ltd. with 364 days in
term. Term of borrowing is from 16 July 2021 to 17 July 2022. the interest rate performs the quoted market rate for one
year loans minus 55bp, floating on an annual basis, the loan amount is 10,000,000.00 yuan.
4) The Company entered into a Borrowing Contract of Working Capital Loans with Hefei Branch of China Minsheng
Bank Co., Ltd. with 1 year in term. Term of borrowing is from 27 August 2021 to 27 August 2022. Fixed rate of 3.2%,
the loan amount is 50,000,000.00 yuan.
5) 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
March 2021 to 10 March 2022. Fixed annual interest rate of 3.35%, the loan amount is 30,000,000.00 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 18 September 2021 to 16 March 2022. Fixed annual interest
rate of 2.6%, the loan amount is 10,000,000.00 yuan.
7) The Company entered into a Master Agreement on Domestic Letter of Credit Financing with Hefei Branch of China
Minsheng Bank Co., Ltd. with 349 days in term. Term of borrowing is from 29 December 2021 to 13 December 2022.
Fixed rate of 2.2%, the loan amount is 100,000,000.00 yuan.
8) The Company entered into a Master Agreement on Domestic Letter of Credit Financing with Hefei Branch of
Industrial Bank Co., Ltd. with 364 days in term. Term of borrowing is from 17 December 2021 to 16 December 2022.
Fixed rate of 2.9%, the loan amount is 100,000,000.00 yuan.
9) 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. with 357 days in term.
179
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Term of borrowing is from 24 December 2021 to 16 December 2022. Fixed rate of 2.9%, the loan amount is
180,000,000.00 yuan.
10) 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
March 2021 to 30 March 2022. Fixed rate of 3.85%, the loan amount is 5,000,000.00 yuan.
11)Anhui Tuoxing Technology Co., Ltd- the wholly-owned subsidiary of Zhongke Meiling Cryogenic Technology Co.,
Ltd borrowed from Bank of China, Hefei Feicui Road Sub-Branch and entered into the Guarantee Contract with the
above mentioned sub-branch. Term of borrowing is from 1 April to 1 April 2022. Fixed rate of 3.65%, the loan amount
is 5,000,000.00 yuan.
22. Trading financial liability
Item Balance at year-end Balance at year-begin
Trading financial liability 12,304,272.41 4,584,076.51
Including: Derivative financial liability 12,304,272.41 4,584,076.51
23. Note payable
Type Balance at year-end Balance at year-begin
Bank acceptance 4,663,885,311.94 4,232,731,220.17
Trade acceptance 175,952,005.84 206,876,762.17
Total 4,839,837,317.78 4,439,607,982.34
24. Account payable
(1) Account payable
Item Amount at year-end Amount at year-begin
Total 2,299,103,796.88 2,851,999,684.30
Including: Amount aged over 1 year 94,640,539.62 74,369,337.19
(2) No major account payable with over one year book age at year-end.
25. Contract liabilities
Item Balance at year-end Balance at year-begin
Total 515,004,115.23 522,550,891.28
Including: Amount aged over 1 year 17,740,130.48 91,437,631.00
26. Wages payable
(1) Category
180
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Balance at Balance at
Item Increase this year Decrease this year
year-begin year-end
Short-term compensation
262,858,303.46 1,489,685,430.90 1,511,519,677.11 241,024,057.25
After-service welfare- defined
contribution plans 23,650,290.96 135,777,842.19 156,932,495.50 2,495,637.65
Dismiss welfare
3,813,181.63 4,685,042.49 4,973,497.46 3,524,726.66
Total 290,321,776.05 1,630,148,315.58 1,673,425,670.07 247,044,421.56
(2) Short-term compensation
Balance at Balance at
Item Increase this year Decrease this year
year-begin year-end
Wages, bonuses, allowances and
subsidies 246,130,770.29 1,311,382,721.30 1,323,371,649.51 234,141,842.08
Welfare for workers and
staff 1,156,146.23 38,521,939.29 39,578,061.74 100,023.78
Social insurance
10,194,113.84 59,164,627.61 68,206,754.21 1,151,987.24
Including: Medical
insurance 9,491,779.25 54,155,350.42 62,566,649.11 1,080,480.56
Work injury
insurance 461,693.28 3,375,166.25 3,826,506.22 10,353.31
Maternity
insurance 240,641.31 1,634,110.94 1,813,598.88 61,153.37
Housing
accumulation fund 4,900,053.99 77,253,766.47 77,292,017.78 4,861,802.68
Labor union expenditure
and personnel education
477,219.11 3,362,376.23 3,071,193.87 768,401.47
expense
Total 262,858,303.46 1,489,685,430.90 1,511,519,677.11 241,024,057.25
(3) Defined contribution plans
Item Balance at Increase this year Decrease this year Balance at
year-begin year-end
Basic endowment
insurance 21,115,136.67 130,585,391.92 150,940,716.15 759,812.44
Unemployment
insurance 2,535,154.29 5,192,450.27 5,991,779.35 1,735,825.21
Total 23,650,290.96 135,777,842.19 156,932,495.50 2,495,637.65
181
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
27. Tax payable
Item Balance at year-end Balance at year-begin
Value-added tax
93,229,596.44 41,769,712.31
Enterprise income tax
3,665,806.85 9,941,386.84
Individual income tax
2,593,701.11 2,781,283.48
Urban maintenance and construction
tax 8,227,864.32 4,056,939.25
Real estate tax
3,758,773.24 6,370,190.14
Land use tax
1,550,831.89 2,701,128.78
Educational surtax
4,932,682.07 2,977,254.61
Stamp tax
3,798,892.56 2,213,950.91
Construction fund of Water
Conservancy Projects 606,448.87 643,321.87
Treatment fund for abandon electrics
& electronics 18,489,806.00 13,835,511.00
Other 1,020,458.53 2,391,754.71
Total 141,874,861.88 89,682,433.90
28. Other account payable
Item Balance at year-end Balance at year-begin
Dividend payable 4,753,764.56 4,466,628.25
Other account payable 746,699,003.44 720,235,058.47
Total 751,452,768.00 724,701,686.72
28.1 Dividend payable
Item Balance at year-end Balance at year-begin
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
182
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Item Balance at year-end Balance at year-begin
Total 4,753,764.56 4,466,628.25
28.2 Other account payable
(1) Other account payable by nature
Nature Balance at year-end Balance at year-begin
1.Accrued expenses (expenses occurred without reimbursed) 364,248,335.74 387,297,440.24
2. Receivables received temporary and deducted temporary 26,847,048.85 30,995,522.33
3.Deposit, margin 148,778,715.05 163,264,455.70
4.Not the come-and-go with related parties in statement scope 187,411,658.83 126,828,746.47
5. Other 19,413,244.97 11,848,893.73
Total 746,699,003.44 720,235,058.47
(2) At end of the year, the major other account payable with account age over one year mainly refers to
the deposit and margin.
29. Non-current liability due within one year
Item Balance at year-end Balance at year-begin
Long-term loan principal and interest due within one year 320,520,933.33 407,141,888.08
Long term account payable due within one year 173,499.29 683,262.66
Lease liabilities due within one year 12,024,045.63 5,000,280.67
Total 332,718,478.25 412,825,431.41
30. Other current liabilities
Item Balance at year-end Balance at year-begin
Pending sales tax 23,388,239.94 20,376,696.94
Factoring fees payable 785,519.22 2,547,001.79
Bill recovery 200,000.00
Total 24,373,759.16 22,923,698.73
31. Long term borrowings
(1) Category of long term borrowings
Category Amount at year-end Amount at year-begin
Loan in mortgage 168,000,000.00 188,000,000.00
183
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Category Amount at year-end Amount at year-begin
Interest payable 231,439.30
Total 168,000,000.00 188,231,439.30
(2) Long-term borrowings at year-end
Foreig
Borrowing Returning n Interest Amount at Amount at
Loan from year-end year-begin(RM
day day curren rate
(RMB) B)
cy
EIBC (Export-Import
Bank) Anhui Province 2020/3/26 2026/11/25 RMB 4.455% 98,000,000.00 98,000,000.00
Branch note1
EIBC (Export-Import
Bank) Anhui Province 2019/12/23 2026/11/25 RMB 4.455% 70,000,000.00 90,000,000.00
Branch note2
Total 168,000,000.00 188,000,000.00
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 fixed assets and intangible assets are used as mortgage
for a long-term loan under the contract. And withdrawal of 98,000,000.00 yuan on March 26, 2020. The term of the
loan is from March 26, 2020 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 98,000,000.00 yuan. The balance at the end of the year is RMB 98,000,000.00.
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 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 10,000,000.00 yuan. It plans to repay 10,000,000.00
yuan on June 25, 2022 and repay 10,000,000.00 yuan on December 25, 2022, a total of 20,000,000.00 yuan has been
reclassified to non-current liabilities due within one year. The balance at the end of the year is RMB 70,000,000.00.
32. Lease liability
Item Balance at year-end Balance at year-begin
Lease liability 33,225,912.15 4,783,483.43
Total 33,225,912.15 4,783,483.43
33. Long-term payable
Item Balance at year-end Balance at year-begin
Long-term payable 175,323.91
Special payable 1,337,643.24 1,530,000.00
Total 1,337,643.24 1,705,323.91
184
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
33.1 Classify by nature
Nature Balance at year-end Balance at year-begin
Financing lease 175,323.91
33.2 Special payable
Balance at Increase Decrease Balance at
Item Reason
year-begin this year this year year-end
Special funds for
Technology plan
technological
1,530,000.000 192,356.76 1,337,643.24 project in
transformation from
Zhongshan City
Zhongshan Changhong
34. Long-term wage payable
Item Balance at year-end Balance at year-begin
Dismissal welfare 9,828,300.06 10,571,526.69
According to the internal early retirement policy, the long-term payable dismissal welfare bears by the Company up to
year-end amounting to 9,828,300.06 yuan
35. Accrual liability
Item Balance at year-end Balance at year-begin Reason
Product quality guarantee note1 9,170,710.48 14,487,294.50 Guarantee of product
Guarantee fund for quality service note1 399,861.15 47,905,440.57 Guarantee of product
Litigation matters note2 1,793,030.00
Total 11,363,601.63 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 2021,
the accrual liability that have not been anticipated has written-off in Current Year, actually 47,303,596.97 yuan
written-off.
Note2 In November 2021, Zhejiang Teruisi Pharmaceutical Inc. filed a lawsuit against Zhongke Meiling for the "Cold
Storage Design, Equipment Purchase and Installation Construction Contract". At present, the court is organizing a
third-party organization to conduct quality assurance for the objects under the contract. Zhongke Meiling intends to
maintain the cold storage project, and the estimated maintenance cost is 1,793,030.00 yuan.
36. Deferred income
(1) Classification of deferred income
Item Balance at year-begin Increase this year Decrease this year Balance at year-end Reason
185
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Item Balance at year-begin Increase this year Decrease this year Balance at year-end Reason
Government
subsidies---subsidie 136,876,337.09 26,291,400.00 24,012,651.46 139,155,085.63
s of development
project
Government
subsidies---subsidie 40,501,113.03 3,992,159.83 36,508,953.20
s of Relocation
Total 177,377,450.12 26,291,400.00 28,004,811.29 175,664,038.83
186
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
(2) Government subsidy
Amount reckoned
Amount at New subsidy in Other Amount at Assetsrelated/Income
Item into other income in
year-begin Current Year changes year-end related
Current Year
Demonstration factory construction for the intelligent manufacturing
49,500,000.00 6,892,405.03 42,607,594.97 Assets related
of intelligent air-conditioner
Demolition compensation of Changhong Meiling 38,316,384.47 2,212,271.23 36,104,113.24 Assets related
Centre for external cooperation of the environmental protection 7,614,900.00 846,100.00 773,631.80 7,687,368.20 Assets related
Key chip and module for transducer used and detection capacity
6,840,000.00 760,000.00 7,600,000.00 Assets related
building
Adaptability improvement on new coolants production 9,459,926.70 2,364,981.69 7,094,945.01 Assets related
Subsidy for industrial development policy from Hefei for first half of
7,794,000.00 1,250,000.00 6,544,000.00 Assets related
2018
Changhong Air Conditioner- relocation of production base and
6,880,000.00 382,222.24 6,497,777.76 Assets related
upgrading & expansion
District-level subsidy funds for advanced manufacturing policies in
5,968,900.00 373,056.25 5,595,843.75 Assets related
the first half of 2021
Advanced Manufacturing Policy Municipal Award in the first half of
5,969,000.00 746,125.00 5,222,875.00 Assets related
2020
Subsidy for industrial development policy from Hefei for second half
5,365,650.00 894,275.00 4,471,375.00 Assets related
of 2019
Special fund, government subsidy CZ059001 4,200,000.00 4,200,000.00 Assets related
20-year subsidy for advancing technological transformation projects 4,287,400.00 178,641.66 4,108,758.34 Assets related
Policy funds for manufacturing a strong province, subsidy for
equipment for the technological transformation of industrial strong 3,750,000.00 625,000.00 3,125,000.00 Assets related
base
3,260,000.00 203,750.00 3,056,250.00 Assets related
2021 manufacturing strong provincial policy subsidy funds
RESEARCH AND APPLICATION OF THE VISA (VARIABLE 4,462,790.72 1,409,302.32 3,053,488.40 Assets related
187
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Amount reckoned
Amount at New subsidy in Other Amount at Assetsrelated/Income
Item into other income in
year-begin Current Year changes year-end related
Current Year
FREQUENCY VOLUME INTEGRATED INTELLIGENT
AIR-CONDITIONER)
Subsidy for industrial development policy from Hefei for first half of
3,440,583.33 434,600.00 3,005,983.33 Assets related
2020
Government subsidy for new plant construction - industrialization of
3,291,666.67 500,000.00 2,791,666.67 Assets related
cryogenic refrigeration equipment
Subsidies for intelligent transformation & upgrading of enterprises
3,280,739.58 605,675.00 2,675,064.58 Assets related
from the new industrialization policy in economic development zone
2020 supporting funds to support the innovation and development of
2,600,000.00 162,500.00 2,437,500.00 Assets related
artificial intelligence industry
2020 fund allocation for Anhui Province's triple innovation project 2,600,000.00 230,208.33 2,369,791.67 Assets related
Research and application of the MCU chip for inverter control 2,300,000.00 2,300,000.00 Assets related
Special funds for strategic emerging industry and high-end growth
2,000,000.00 103,448.28 1,896,551.72 Assets related
industry
Industrialization of intelligent white household appliances software
2,303,030.33 727,272.73 1,575,757.60 Assets related
platform and typical application research and development
Equipment subsidy for the industrial base technical renovation from
1,547,083.33 235,000.00 1,312,083.33 Assets related
Economic and Information Commission
Upgrade project for the production line of Mianyang Meiling
1,316,666.72 197,499.96 1,119,166.76 Assets related
Intelligent Refrigerator
Subsidy from Zhongshan Finance Bureau (CZ028001 provincial
1,397,706.70 305,646.49 1,092,060.21 Assets related
special project 2019)
Subsidy for equipment purchasing for Hefei Tech. Improvement
1,179,470.00 179,160.00 1,000,310.00 Assets related
project in 2017
Subsidy for purchase of R & D instruments and equipment 882,105.20 182,112.52 699,992.68 Assets related
Promotion of the energy-saving room air conditioner 858,762.97 210,309.28 648,453.69 Assets related
Emerging Industry Base Fund Support Item 620,000.00 6,391.75 613,608.25 Assets related
Robot policy-rewards for purchasing robots 555,156.26 70,125.00 485,031.26 Assets related
188
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Amount reckoned
Amount at New subsidy in Other Amount at Assetsrelated/Income
Item into other income in
year-begin Current Year changes year-end related
Current Year
Promoting the new industry ( annual output of 0.6 million
medium& large volume environmental protection and energy 761,031.21 304,412.52 456,618.69 Assets related
saving freezer)
Demolition compensation of Jiangxi Meiling 2,184,728.56 1,779,888.60 404,839.96 Assets related
Special fund for technical improvement 484,047.64 103,809.60 380,238.04 Assets related
Special fund for technical improvement 416,912.46 61,203.84 355,708.62 Assets related
Technical transformation of refrigerator evaporator workshop 394,062.50 60,625.00 333,437.50 Assets related
2018 Zhongshan Special fund for industrial development 464,508.75 171,858.05 292,650.70 Assets related
Technical transformation subsidy 209,218.33 31,779.96 177,438.37 Assets related
Refrigerator evaporator production workshop 157,262.27 29,033.00 128,229.27 Assets related
Technical renovation of air conditioner production line 190,767.27 96,009.00 94,758.27 Assets related
Subsidy for the development on production line technical reform for
88,600.63 40,892.64 47,707.99 Assets related
green-friendly high-quality metal pipe
Subsidy for characteristic innovation and entrepreneurship carrier
2,000,000.00 2,000,000.00 Income related
project
Technical transformation of the Athena project 869,687.52 869,687.52 Assets related
Total 177,377,450.12 26,291,400.00 28,004,811.29 175,664,038.83
189
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
37. Share capital
Change during the year (+、-)
Balance at Shares
Item New shares Bonus Balance at year-end
year-begin transferred from Other Subtotal
issued share
capitalreserve
Total shares 1,044,597,881.00 1,044,597,881.00
38. Capital reserve
Amount at
Item Increase this year Decrease this year Amount at year-end
year-begin
Share premium 2,635,663,966.42 877,657.56 2,634,786,308.86
Other capital
48,173,262.70 130,171.30 48,043,091.40
reserve
Total 2,683,837,229.12 1,007,828.86 2,682,829,400.26
Note: Change of the share premium in the year mainly due to the buy-back of B-share 5,438.39 yuan in the year; capital
surplus of 872,219.17 yuan generated from the repurchase of minority’s interest of Guangzhou Meiling in the year.
Other changes in capital reserves this year are changes in capital reserves of subsidiaries acquired by the associated
enterprise Zhiyijia under the same control. The company recognizes capital reserves of RMB 130,171.30 according to
the shareholding ratio.
39. Treasury stock
Item Balance at Increase this year Decrease this year Balance at
year-begin year-end
Repurchase of B
9,929,336.18 16,501,235.20 26,430,571.38
shares
Total 9,929,336.18 16,501,235.20 26,430,571.38
Note: The Company held the 40th session of the 9th BOD, the 21st session of the 9th BOS, and the third extraordinary
general meeting of shareholders in 2020 on July 27 and August 18, 2020, which reviewed and approved the Proposal on
the Repurchase of Part of the Company's Domestically Listed Foreign Shares (B Shares)", and agreed that the company
would use its own funds to repurchase part of the company's domestically listed foreign shares (B shares) through
centralized bidding transactions, and the repurchased B shares would be cancelled in accordance with the law and the
registered capital of the company would be reduced accordingly. The total amount of the repurchase should be no less
than 50 million yuan (inclusive) and no more than 100 million yuan (inclusive), based on the central parity rate of
Hong Kong Dollar against RMB on July 24, 2020: 1 HKD = 0.9023 yuan, equivalent to Hong Kong dollars of not less
than HK$55,413,942.15 (inclusive) and not more than HK$110,827,884.30 (inclusive). The specific total amount of
repurchase funds should be subject to the total amount of funds actually used for the repurchase of shares at the
expiration of the repurchase period. The price of repurchasing B shares this time should not exceed HK$2.21/share
(inclusive). After the implementation of the 2020 annual profit distribution plan, the upper limit of the price of
repurchasing B shares would be adjusted from HK$2.21/share (inclusive) to HK$2.15/share (inclusive). ).
190
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
On August 24, 2021, the company held the 11th session of the 10th BOD, the directors of the company unanimously
agreed to the Proposal on Continuing Implementation and Partial Adjustment of the Repurchase of Some Domestically
Listed Foreign Shares (B Shares) of the Company", continued to implement the Plan on Repurchasing Part of the
Company’s Domestically Listed Foreign Shares (B Shares) approved by the previous shareholders' meeting of the
company; at the same time, the repurchase period in the aforementioned plan was extended to February 18, 2022, that
is, the repurchase period was from August 18, 2020 to February 18, 2022; the repurchase price was adjusted from no
more than HK$2.15/share (inclusive) to no more than HK$2.36/share (inclusive) (not exceeding 150% of the average
trading price of the company's stock in the first 30 trading days prior to the reviews and approval of the 11th meeting of
the tenth BOD); the 9,582,882 B shares repurchased in the previous period would be cancelled after the expiration of
extension of the repurchase period.
As of December 31, 2021, a total of 14,288,639 shares were repurchased, and the total repurchase transaction price was
HK$31,648,618.56, equivalent to 26,430,571.38 yuan at the real-time exchange rate.
40. Other comprehensive income
Current Year
Less:
written in
other
comprehen
Less：
sive income
Balance at Account Inco Belong to Belong to Balance at
Item in previous
year-begin before me parent minority year-end
period and
income tax in tax company shareholde
carried
Current Year after tax rs after tax
forward to expen
ses
gains and
losses in
current
period
Other comprehensive income re-divided into gains/losses
Conversion
difference arising
from foreign -21,451,084.17 615,920.12 547,813.60 68,106.52 -20,903,270.57
currency financial
statement
Total -21,451,084.17 615,920.12 547,813.60 68,106.52 -20,903,270.57
41. Surplus reserves
Amount at Amount at
Item Increase this year Decrease this year
year-begin year-end
Statutory surplus reserve 300,757,088.27 6,746,446.47 307,503,534.74
Discretionary surplus
115,607,702.16 115,607,702.16
reserve
Total 416,364,790.43 6,746,446.47 423,111,236.90
42. Retained profit
191
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Item Current Year Last Year
Prior year-end balance 740,754,202.23 884,127,743.42
Add: adjustment from undistributed profit at year-begin
Including: retroactive adjustment by Accounting
Standards for Business Enterprise
change of accounting policy
Correction of former material error
Change of combination scope under
common control
Balance at year-begin 740,754,202.23 884,127,743.42
Add: net profit attributable to shareholders of parent
51,898,388.84 -85,565,716.91
company for this year
Less: withdraw of statutory surplus reserve 6,746,446.47 5,577,930.23
withdraw of discretionary surplus reserve
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
Balance at year-end 734,129,724.00 740,754,202.23
43. Operation income and operation cost
(1) Operation income and operation cost
Current Year Last Year
Item
Income Cost Income Cost
Main 17,331,645,754.46 15,273,131,473.38
14,154,240,737.32 11,709,373,550.27
business
Other 701,311,746.98 596,614,341.09
1,233,809,492.35 1,141,498,122.30
business
Total 18,032,957,501.44 15,869,745,814.47 15,388,050,229.67 12,850,871,672.57
(2) Main business classified according to product
Current Year Last Year
Product
Operation income Operation cost Operation income Operation cost
Refrigerator,
8,165,836,380.29 6,945,620,033.21 7,677,640,685.10 6,148,588,872.52
freezer
Air-conditioner 6,867,304,359.29 6,364,053,615.99 4,619,288,893.44 4,053,771,792.10
Washing
668,996,516.82 534,901,177.78 466,805,675.50 384,583,731.12
machine
Small household
appliances and
1,330,315,557.62 1,154,251,783.53 1,143,165,497.06 958,061,925.19
kitchen and
bathroom
Other 299,192,940.44 274,304,862.87 247,339,986.22 164,367,229.34
192
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Current Year Last Year
Product
Operation income Operation cost Operation income Operation cost
Total 17,331,645,754.46 15,273,131,473.38 14,154,240,737.32 11,709,373,550.27
(3) Main business classified according to sales region
Current Year Last Year
Region
Operation income Operation cost Operation income Operation cost
Domestic 12,521,627,236.27 10,779,025,843.09 9,174,395,337.92 7,413,002,117.96
Overseas 4,810,018,518.19 4,494,105,630.29 4,979,845,399.40 4,296,371,432.31
Total 17,331,645,754.46 15,273,131,473.38 14,154,240,737.32 11,709,373,550.27
Top five clients have income in sales of 9,460,098,700.85 yuan in total, a 52.46 % in total operation income.
（4）Statement of revenue deduction
Last Year
Current Year Detailed
Item In 10 In 10
deduction item
thousand yuan
thousand yuan
Revenue 1,803,295.75 1,538,805.02
business income
Total amount of deduction items from revenue 14,438.31 13,518.65 unrelated to core
business
Ratio of total amount of deduction items from revenue as
0.80 0.88 —
revenue
Other income other than normal operation. For example,
income from renting houses, sales of wasting materials and the
14,438.31 13,518.65
income outside the normal operation of the listed
company,although recorded in "revenue"
Subtotal of business income unrelated to core business 14,438.31 13,518.65
Revenue after deduction item 1,788,857.44 1,525,286.37
44. Business tax and extra charges
Item Current Year Last Year
Treatment fund for abandon electrics & electronics 44,423,770.00 54,489,675.00
City construction tax 19,468,269.04 27,164,098.44
Extra charge for education and local education
14,635,736.24 20,252,422.13
surcharge
Real estate tax 20,177,953.31 19,343,805.61
193
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Item Current Year Last Year
Stamp duty 15,103,354.99 12,839,245.15
Land use tax 8,323,457.05 7,473,391.72
Water fund 6,923,860.11 7,156,421.01
Other 11,363.34 1,596,453.38
Total 129,067,764.08 150,315,512.44
45. Sales expense
Item Current Year Last Year
Salary, extra charges and labor service expenses 570,204,800.54 602,311,290.04
Market support expenses 305,176,382.00 300,981,172.56
National three guarantees expense 141,027,709.39 90,872,070.92
Shipping and Installation expense 119,830,405.37 719,028,096.35
Storage lease expenses 100,617,796.86 93,417,953.55
Travelling expenses 29,229,678.19 27,679,048.85
Business activity expenses 17,319,526.22 7,737,646.92
Service support expenses 16,850,832.61 39,269,346.08
Insurance expenses 12,506,597.90 14,608,773.95
Vehicle expenses 9,068,901.91 1,692,392.60
Depreciation expenses 8,058,200.89 7,984,786.81
Meeting organization expenses 3,181,909.93 907,896.51
Advertising expenses 3,009,994.39 1,423,006.42
House-lease expenses 1,583,945.12 1,085,901.86
Communication expenses 943,777.71 1,107,112.94
Other expenses 26,029,945.72 35,697,303.20
Total 1,364,640,404.75 1,945,803,799.56
46. Administration expense
Item Current Year Last Year
Salary and social insurance etc. 212,452,104.33 170,017,710.90
Depreciation 23,489,510.10 19,860,652.31
Amortized intangible assets 18,074,719.94 18,997,141.21
Water and electricity fee 6,561,477.70 6,596,531.99
Business activities fee 5,277,048.90 3,421,679.60
Property insurance fee 5,264,916.64 5,727,401.94
Domestic travelling fee 3,365,425.65 3,138,305.00
Office fee 1,954,323.86 1,847,681.31
Board fees 1,819,196.77 1,446,841.30
194
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Item Current Year Last Year
Inspection and authentication fee 588,177.67 648,176.21
Other expenses 54,741,873.81 48,543,562.79
Total 333,588,775.37 280,245,684.56
47. R&D expenses
Item Current Year Last Year
Salary and social insurance etc. 169,613,060.06 124,899,251.69
Amortized intangible assets 123,668,238.26 114,668,760.56
Trial fee of R&D 41,894,900.89 44,713,078.54
Technical development cost 35,425,186.62 23,589,293.27
Inspection and authentication fee 23,112,922.97 15,455,566.85
Depreciation 17,122,874.36 15,179,901.55
Cost of mould 9,335,908.93 5,534,614.33
Software royalty 2,174,741.57 755,542.28
Domestic travel expenses 1,967,777.25 969,236.31
Other expenses 41,575,485.18 34,873,677.53
Total 465,891,096.09 380,638,922.91
48. Financial expenses
Item Current Year Last Year
Interest expenditure 71,229,760.29 88,262,152.17
Less: Interest income 140,024,813.71 139,603,245.84
Add: exchange loss 3,784,522.39 33,026,909.13
Procedure charge expenditure 19,062,243.58 19,928,603.14
Discount expenditure -12,454,495.35 -7,144,403.44
Total -58,402,782.80 -5,529,984.84
49. Other income
Item Current Year Last Year
Industrial development policy subsidy 27,000,000.00 28,058,461.33
Immediate refund of VAT for software products 9,172,445.35 4,858,596.32
Demonstration factory construction for the intelligent manufacturing of
6,892,405.03
intelligent air-conditioner
2021 foreign trade and economic development funds 4,312,000.00
2020 foreign trade promotion policy 2,746,604.00
Adaptability improvement on new coolants production 2,364,981.69 2,364,981.72
Subsidy for export credit insurance 2,344,865.00 7,516,778.79
195
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Item Current Year Last Year
Demolition compensation of Changhong Meiling 2,212,271.23 2,297,010.33
2021 provincial industrial development special project fund 2,200,000.00
VAT refund 2,095,773.00
Subsidy for characteristic innovation and entrepreneurship carrier project 2,000,000.00
Demolition compensation of Jiangxi Meiling 1,779,888.60 1,779,888.60
Government subsidies for settlement 1,500,000.00
The first batch of provincial industrial development special fund subsidies in
1,490,000.00
2021
RESEARCH AND APPLICATION OF THE VISA (VARIABLE
FREQUENCY VOLUME INTEGRATED INTELLIGENT 1,409,302.32 1,409,302.32
AIR-CONDITIONER)
2021 support for the development of China's Sound Valley 1,395,000.00
2021 manufacturing strong provincial policy subsidy funds 1,320,000.00
Subsidy for industrial development policy from Hefei for first half of 2018 1,250,000.00 1,250,000.00
Special funds for port logistics 1,144,395.00
Economic Development Zone Industrialization Policy Award and
1,140,400.00
Supplementary Funds in 2019
The second batch of funds to support China's Sound Valley construction
1,044,200.00
project in 2020
20020 product testing fee subsidy 1,000,000.00
Hefei City 2020 smart home appliance (home) technology award and subsidy 1,000,000.00
Reward and subsidize national specialized, special and new "little giant"
1,000,000.00
enterprises
2021 Industrial Internet Policy Award and Subsidy 1,000,000.00
Incentives for major scientific and technological projects 1,000,000.00
"Double Top 100" Enterprise Rewards 1,000,000.00
2021 Special project for the construction of innovation capability and
900,000.00
industrial upgrading platform
Subsidy for industrial development policy from Hefei for second half of 2019 894,275.00 1,788,550.00
Technical transformation of the Athena project 869,687.50 4,008,124.98
Subsidy for revitalizing idle factories 843,732.00 843,732.00
Centre for external cooperation of the environmental protection 773,631.80
Advanced Manufacturing Policy Municipal Award in the first half of 2020 746,125.00
Industrialization of intelligent white household appliances software platform
727,272.73 727,272.72
and typical application research and development
Modern service industry development policy funds 714,500.00
2020 undertake industrial transfer to promote the innovation and development
652,039.00
of processing trade funds
Policy funds for manufacturing a strong province, subsidy for equipment for 625,000.00 625,000.00
196
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Item Current Year Last Year
the technological transformation of industrial strong base
Talent subsidy 616,436.00 1,931,630.00
Subsidies for intelligent transformation & upgrading of enterprises from the
605,675.00 605,675.00
new industrialization policy in economic development zone
Technology Insurance Grant 600,000.00
Skills Upgrading Training Program 600,000.00
Patent reward 515,800.00
Government subsidy for new plant construction - industrialization of
500,000.00 500,000.00
cryogenic refrigeration equipment
2021 triple innovation platform funds 500,000.00
Intellectual Property Special Fund 500,000.00 205,000.00
Subsidy for industrial development policy from Hefei for first half of 2020 434,600.00 36,216.67
Artificial Intelligence Project Grants 414,000.00
Q4 of 2020 Land Use Tax Return 400,534.76
The first batch of scientific and technological innovation policy high-level title
400,000.00
awards in 2020
Changhong Air Conditioner- relocation of production base and upgrading &
382,222.24
expansion
Property Tax Rebate for Q4 of 2020 373,459.10
District-level subsidy funds for advanced manufacturing policies in the first
373,056.25
half of 2021
2021 special awards and subsidies for energy conservation and ecological
347,600.00
construction
Personal tax handing fee refund
333,648.78 219,724.18
Subsidy from Zhongshan Finance Bureau (CZ028001 provincial special project
305,646.49 305,646.49
2019)
Promoting the new industry ( annual output of 0.6 million medium& large
304,412.52 304,412.52
volume environmental protection and energy saving freezer)
Zhongshan City Increases Incentive Projects for Enterprises with Outstanding
300,000.00
Contribution to Stabilizing Foreign Trade
2019 District-level Industrial Policy Science and Technology Innovation
300,000.00
Policy
Overseas investment insurance subsidy 290,171.00
Hefei Standardization Policy Award and Subsidy 290,000.00
Subsidies for scientific and technological innovation projects 281,000.00
Subsidy for instruments and equipment 265,400.00
2021 technological transformation and financial incremental contribution
259,100.00
incentive policy awards and subsidies
2021 special funds for industrial development in Zhongshan City 250,000.00
197
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Item Current Year Last Year
Policies support the separation of main and auxiliary enterprises 249,845.00
Equipment subsidy for the industrial base technical renovation from Economic
235,000.00 235,000.00
and Information Commission
2020 fund allocation for Anhui Province's triple innovation project 230,208.34
Promotion of the energy-saving room air conditioner 210,309.28 210,309.24
2021 manufacturing strong provincial policy subsidy funds 203,750.00
Incentives for "Innovative and Entrepreneurial Teams at the Start-up Stage" 200,000.00
Provincial service-oriented manufacturing demonstration enterprise bonus 200,000.00
Anhui Province Manufacturing High-end Brand Cultivation Enterprise Project
200,000.00
Award and Subsidy
Design achievement industrialization project subsidy 200,000.00
2020 Annual Outstanding Enterprise Award Fund 200,000.00
Upgrade project for the production line of Mianyang Meiling Intelligent
197,499.96 197,499.96
Refrigerator
Subsidy for purchase of R & D instruments and equipment 182,112.52 167,482.30
Subsidy for equipment purchasing for Hefei Tech. Improvement project in
179,160.00 179,160.00
2017
2020 subsidy for advancing technological transformation projects 178,641.67
2018 Zhongshan Special fund for industrial development 171,858.05 265,723.80
2020 High-quality Development Several Supporting Policy Awards 170,000.00
2020 supporting funds to support the innovation and development of artificial
162,500.00
intelligence industry
2020 special funds for port logistics 135,660.00
2020 supporting industry linkage development 128,100.00
Military-civilian integration insurance premium subsidy 127,451.00
Outstanding Contribution Award for Enterprises to Promote High-Quality
120,000.00
Development
2020 Science and Technology Innovation Policy Award and Subsidy for
104,000.00
Economic and Technological Development Zone
Special fund for technical improvement 103,809.60 63,193.35
Special funds for strategic emerging industry and high-end growth industry 103,448.28
Enterprise policy funds of the Economic and Trade Development Bureau of
3,074,766.67
the Joint Economic Zone
Subsidy for employment stable 5,520,715.46
Several policy subsidies in Anhui Province to support the development of the
3,500,000.00
digital economy
Nanjing Port Special Subsidy Fund 2,571,170.00
Room air conditioner industry propane production line to increase operating
2,403,000.00
cost subsidies
198
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Item Current Year Last Year
Sichuan Province Account receivable financing core enterprise reward and
2,369,300.00
subsidy funds
Technology Innovation and Enterprise Development Fund 1,895,786.40
Fiscal Incremental Contribution Project Subsidy for Technological
1,681,100.00
Transformation
Subsidies for large enterprises and large groups to drive SMEs to integrate
1,430,000.00
development projects
Joint Economic Finance Provincial Foreign Trade Fund Subsidy 1,338,474.94
2019 incentives for promoting high-quality development of the manufacturing
1,275,000.00
industry
2018 Special Fund for Foreign Economic and Trade Development and Port
1,062,566.00
Construction
Policy Subsidies for Promoting Science and Technology Innovation 987,900.00
Provincial innovation-driven development special funds 800,000.00
Epidemic subsidies 771,450.00
Changhong Meiling Freezer Project 734,062.42
State-funded project - research and development of frequency conversion
700,000.00
control chips
Corporate subsidy income 665,061.00
Special funds for enterprises 630,000.00
Tax Contribution Award 584,300.00
Special funds for overseas investment insurance 576,699.00
Logistics Subsidy 550,000.00
Tax refunds received 523,166.43
Integrated Circuit Industry Policy Fund 500,000.00
Corporate Brand Cultivation Grant 500,000.00
International market development subsidy for SMEs 377,144.00
Industrial Development Fund 200,000.00
Technical transformation subsidy 108,581.67
Technical renovation of air conditioner production line 95,829.50
Special fund for technical improvement 61,203.83
Technical transformation of refrigerator evaporator workshop 60,625.00
Subsidy for the development on production line technical reform for
40,892.60
green-friendly high-quality metal pipe
Refrigerator evaporator production workshop 29,033.04
Technological Transformation Fund 10,000.00
Robot policy-rewards for purchasing robots 5,843.74
Other petty projects 3,495,382.00 3,534,135.95
Total 108,992,292.09 104,122,180.27
199
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
50. Investment income
Item Current Year Last Year
Long-term equity investment income by equity method 12,422,382.59 -3,500,527.61
Investment income obtained from disposal of tradable financial assets 95,088,495.95 46,456,622.69
Income from financial products 13,856,905.10 7,952,740.73
Investment income of other non-current financial assets during holding period 7,596,184.95 27,218,378.81
Total 128,963,968.59 78,127,214.62
51. Changes in fair value gains
Item Current Year Last Year
Tradable financial assets -29,245,252.88 39,512,070.15
Including :Income of fair value changes from derivative financial instruments -29,245,252.88 39,512,070.15
Trading financial liability -7,720,195.90 -3,506,201.30
Including :Income of fair value changes from derivative financial instruments -7,720,195.90 -3,506,201.30
Other non-current financial assets 33,831,509.36 5,608,931.34
Total -3,133,939.42 41,614,800.19
52. Credit impairment loss
Item Current Year Last Year
Note receivable bad debt loss 8,481,942.30 -6,578,442.30
Account receivable bad debt loss -29,230,616.84 -14,508,281.88
Other account receivable bad debt loss -235,222.39 4,028,236.18
Total -20,983,896.93 -17,058,488.00
53. Assets impairment loss
Item Current Year Last Year
Loss on inventory valuation
-49,526,210.35 -56,152,155.82
Impairment loss on intangible assets -7,957,831.68 -22,114,421.01
Impairment loss on fixed assets -445,081.08
Total -57,484,042.03 -78,711,657.91
54. Income from assets disposal
Amount reckoned
into non-recurring
Item Current Year Last Year
gains/losses in
Current Year
Income from non-current assets disposal -133,214.72 -500,976.21 -133,214.72
200
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Amount reckoned
into non-recurring
Item Current Year Last Year
gains/losses in
Current Year
Including: income classify to assets ready for
sale
income not classify as to assets ready
-133,214.72 -500,976.21 -133,214.72
for sale
Including: Income from fixed assets
-133,214.72 -500,976.21 -133,214.72
disposal
Income from intangible assets
disposal
Total -133,214.72 -500,976.21 -133,214.72
55. Non-operation revenue
Amount reckoned
into non-recurring
Item Current Year Last Year
gains/losses in
Current Year
Income of penalty 1,258,456.10 561,010.41 1,258,456.10
Other 8,763,597.78 7,907,595.00 8,763,597.78
Total 10,022,053.88 8,468,605.41 10,022,053.88
56. Non-operating expenditure
Amount reckoned into non-recurring
Item Current Year Last Year
gains/losses in Current Year
Non-current asset retirement
1,524,444.23 1,610,319.34 1,524,444.23
losses
Public welfare donation
11,000.00 413,569.21 11,000.00
expenditure
Penalty and late fee 604,687.12 556,035.82 604,687.12
Other 3,013,937.15 5,064,717.27 3,013,937.15
Total 5,154,068.50 7,644,641.64 5,154,068.50
57. Income tax expenses
Item Current Year Last Year
Current income tax 23,630,449.16 18,657,750.29
Deferred income Tax -21,207,520.22 -25,413,978.61
Total 2,422,928.94 -6,756,228.32
58. Other comprehensive income
Found more in 40. Other comprehensive income in VI
201
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
59. Items of cash flow statement
(1) Cash received (paid) from (for) other activities relating to operation/investment/financing
1) Cash received from other activities relating to operation
Item Current Year Last Year
Government subsidy and rewards 100,949,021.63 95,927,171.54
Collection of restriction fund 93,302,596.49 7,872,582.73
Cash deposit, deposit 31,184,841.18 37,095,731.45
Rental income 5,605,416.80 7,062,728.75
Compensations 1,271,453.02 2,594,225.87
Petty cash collection 711,008.91 669,366.91
Other 10,524,796.11 7,854,834.00
Total 243,549,134.14 159,076,641.25
2) Cash paid for other activities relating to operation
Item Current Year Last Year
Market expenses 222,791,063.19 255,164,897.06
Rental fee 120,806,416.80 119,053,780.02
Petty cash, deposit, Cash deposit 60,780,516.64 54,464,272.08
Travel expenses, meeting fees and exhibition
44,379,229.38 36,309,468.38
fees
Service support fee 41,594,786.19 70,451,962.30
Inspection and certification fee, certification
35,467,610.78 35,181,026.65
charge and reviewing fee
Technological cooperation costs and consulting
26,209,006.41 21,277,315.33
charge
Repair fee 22,676,804.70 13,097,229.57
Convert to restricted funds 20,079,453.92 76,693,696.74
Transportation and vehicle costs 17,397,441.98 22,580,186.94
Business activity fee 17,242,092.12 14,449,890.29
Handling fee 14,499,999.53 11,957,196.81
Office expenses 8,072,340.01 8,118,120.21
Advertising fee 5,344,491.93 7,478,184.84
Communication costs 3,420,542.01 2,211,811.13
Board expenses 2,006,972.68 1,831,261.76
Labor fee 1,856,562.73 6,369,121.47
Other expense 143,929,062.93 101,246,863.15
Total 808,554,393.93 857,936,284.73
3) Cash received from other activities relating to investment
202
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Item Current Year Last Year
Interest income arising from bank savings 137,430,181.38 139,527,348.90
Foreign exchange investment income 112,471,926.55 47,402,894.53
Cash deposit 867,288.00 1,317,038.52
other 525,518.72
Total 251,294,914.65 188,247,281.95
4) Cash paid for other activities relating to investment
Item Current Year Last Year
Loses of forward exchange settlement 66,334.39 946,271.84
Bid bond refund 2,000.00 40,000.00
Total 68,334.39 986,271.84
5) Cash received from other activities relating to financing
Item Current Year Last Year
Recover loan cash deposit 23,232,000.00
Meiling series (internal) bill discounting
14,136,579.91 4,919,427.20
fundraising
Total 14,136,579.91 28,151,427.20
6) Cash paid for other activities relating to financing
Item Current Year Last Year
Payment for B share repurchase 16,506,673.59 9,934,941.56
Lease liability principal and interest 10,862,303.71
Financing lease 701,295.52 2,570,997.36
Handling charge of dividend 36,415.52 36,893.14
Meiling series (internal) bill discounting
216,853.94
fundraising
Total 28,323,542.28 12,542,832.06
(2) Supplementary of the consolidated cash flow statement
Item Current Year Last Year
1. Net profit is adjusted to cash flow of operation
activities:
Net profit 87,092,653.50 -79,122,112.48
Add: provision for depreciation of assets -9,614,635.07 30,982,642.44
Depreciation of fixed assets, consumption of oil gas 221,606,094.74
224,389,307.35
assets and depreciation of productive biological assets
Amortization of intangible assets 147,281,829.24 138,997,172.49
Depreciation of right-of-use assets 8,703,287.66
203
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Item Current Year Last Year
Amortization of long-term retained expense 133,214.72 500,976.21
Loss from disposal of fixed assets, intangible assets and
828,934.22 1,610,319.34
other long term assets (gain is listed with “-”)
Loss from discarding fixed assets as useless (gain is
3,133,939.42 -41,614,800.19
listed with “-”)
Loss from change of fair value (gain is listed with “-”) -65,010,531.03 -18,314,184.54
Financial expense (gain is listed with “-”) -128,963,968.59 -78,127,214.62
Investment loss (gain is listed with “-”) -20,302,373.34 -29,732,801.80
Decrease of deferred income tax assets (increase is listed
-905,146.88 4,318,823.19
with “-”)
Increase of deferred income tax liabilities (decrease is
384,573,713.19 -249,696,219.79
listed with “-”)
Decrease of inventories (increase is listed with “-”) -56,907,214.37 196,371,339.03
Decrease of operational accounts receivable (increase is
-481,355,049.55 1,247,489,556.08
listed with “-”)
Other 70,628,510.24 55,463,419.75
Net cash flow arising from operation activities 160,923,258.10 1,403,516,222.46
2. Major investment and financing activities that do
not involve cash receipts:
Conversion of debt into capital
Switching Company bonds due within one year
financing lease of fixed assets
3. Net change in cash and cash equivalents:
Balance at year-end of cash 5,840,194,931.57 6,425,529,815.10
Less: Balance at year-begin of cash 6,425,529,815.10 5,385,807,475.51
Add: Balance at year-end of cash equivalents
Less: Balance at year-begin of cash equivalents
Net increase in cash and cash equivalents -585,334,883.53 1,039,722,339.59
(3) No net cash paid for subsidiary obtained in Current Year
(4) No net cash received from subsidiary disposal in Current Year
(5) Cash and cash equivalent
Balance at Balance at
Item
year-end year-begin
Cash 5,840,194,931.57 6,425,529,815.10
Including: cash in stock 28,447.21 35,088.07
Bank deposits available for payment at any time. 5,121,110,089.59 6,049,544,898.32
Other monetary fund available for payment at any time 719,056,394.77 375,949,828.71
Cash equivalents
Including: bond investment due within 3 months
Balance of cash and cash equivalents at year-end 5,840,194,931.57 6,425,529,815.10
204
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Balance at Balance at
Item
year-end year-begin
Including: using the restricted cash and cash equivalents of the parent
company or subsidiary of the group
60. Assets with ownership or the right to use restricted
Item Ending book value Reasons
Monetary fund 86,159,526.57 Cash deposit, Frozen funds
Receivables financingnote1 385,477,263.99 Pledged
Investment real estate note2 3,459,001.20 Mortgage
Fixed assetsnote2 349,673,407.72 Mortgage
Intangible assets note2 281,129,088.88 Mortgage
Total 1,105,898,288.36
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. 31. Long-term loans.
61. Foreign currency
(1) Foreign currency
Item Ending foreign currency balance Exchange rate Ending RMB converted balance
Monetary fund 283,387,585.88
Including: USD 34,885,290.26 6.3757 222,418,145.11
Euro 2,124,713.55 7.2197 15,339,794.41
HKD 25,152,663.76 0.8176 20,564,817.89
GBP 48,778.04 8.6064 419,803.32
PKR 40,666,810.33 0.0358 1,455,871.81
IDR 7,725,531,406.00 0.000447 3,453,312.54
AUD 3,800,493.87 4.6220 17,565,882.66
PHP 17,345,788.49 0.1251 2,169,958.14
Account receivable 666,814,490.39
Including: USD 79,915,042.38 6.3757 509,514,335.70
Euro 3,538,476.86 7.2197 25,546,741.39
GBP 75,158.80 8.6064 646,846.70
PKR 1,192,749,085.67 0.0358 42,700,417.27
IDR 67,017,028,612.98 0.000447 29,956,611.79
205
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Item Ending foreign currency balance Exchange rate Ending RMB converted balance
AUD 12,402,296.19 4.6220 57,323,412.99
PHP 9,001,795.00 0.1251 1,126,124.55
Other account receivable 1,744,764.74
Including: USD 155,081.70 6.3757 988,754.39
PKR 13,315,160.00 0.0358 476,682.73
IDR 496,610,000.00 0.000447 221,984.67
PHP 458,376.92 0.1251 57,342.95
Account payable 33,855,926.41
Including: USD 10,463.31 6.3757 66,710.93
Euro 13,419.32 7.2197 96,883.46
PKR 578,994,689.54 0.0358 20,728,009.89
IDR 16,169,496,599.55 0.000447 7,227,764.98
PHP 45,855,772.61 0.1251 5,736,557.15
Other account payable 12,680,711.20
Including: USD 3,670.81 6.3757 23,403.98
HKD 17,362.53 0.8176 14,195.61
PKR 272,926,893.34 0.0358 9,770,782.78
IDR 5,685,314,384.79 0.000447 2,541,335.53
PHP 2,645,829.76 0.1251 330,993.30
(2) Foreign operational entity
The foreign operational entity of the Company was Changhong Ruba Trading Company (Private) Limited, mainly
operates in Lahore, Pakistan; Recording currency is Pakistan Rupi. CHANGHONG MEILING ELECTRIC
INDONESIA, PT, mainly operates in Jakarta; recording currency is IDR. CH-Meiling International (Philippines) Inc,
mainly operates in Philippines; Recording currency is PHP.
62. The Company uses the forwarding foreign exchange contract to hedge the risks of exchange rate
fluctuations and designates the forwarding foreign exchange contract purchased as hedging
instruments for delivery at maturity. We adopts the ratio analysis to evaluate the effectiveness of
hedging. Details are below:
Carrying value of the hedging
instrument on December 31, Items of balance sheet present
Item 2021 include the hedging instruments
Fair value hedges
Exchange rate risk - forward foreign
exchange contracts 17,997,086.19 Trading financial assets
206
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Exchange rate risk - forward foreign
exchange contracts 12,304,272.41 Trading financial liabilities
63.Government subsidy
Amount
reckoned into
Item Amount Item
current
gain/loss
Industrial Development Policy Subsidy Fund 27,000,000.00 Other income 27,000,000.00
VAT refund on software products 9,172,445.35 Other income 9,172,445.35
Advanced Manufacturing Policy Municipal Award in the
5,969,000.00 Deferred income 746,125.00
first half of 2020
District-level subsidy funds for advanced manufacturing
5,968,900.00 Deferred income 373,056.25
policies in the first half of 2021
2021 foreign trade and economic development funds 4,312,000.00 Other income 4,312,000.00
2020 subsidy for advancing technological transformation
4,287,400.00 Deferred income 178,641.66
projects
2021 manufacturing strong provincial policy subsidy
3,260,000.00 Deferred income 203,750.00
funds
Financial
Loan discount 3,204,404.00 3,204,404.00
expenses
Other petty projects 3,099,321.81 Other income 3,099,321.81
2020 foreign trade promotion policy 2,746,604.00 Other income 2,746,604.00
2020 supporting funds to support the innovation and
2,600,000.00 Deferred income 162,500.00
development of artificial intelligence industry
2020 fund allocation for Anhui Province's triple
2,600,000.00 Deferred income 230,208.33
innovation project
Export Credit Insurance Subsidy 2,344,865.00 Other income 2,344,865.00
2021 provincial industrial development special project
2,200,000.00 Other income 2,200,000.00
fund
VAT refund 2,095,773.00 Other income 2,095,773.00
Settled in government subsidies 1,500,000.00 Other income 1,500,000.00
The first batch of provincial industrial development
1,490,000.00 Other income 1,490,000.00
special fund subsidies in 2021
2021 support for the development of China's Sound
1,395,000.00 Other income 1,395,000.00
Valley
2021 manufacturing strong provincial policy subsidy
1,320,000.00 Other income 1,320,000.00
funds
Special funds for port logistics 1,144,395.00 Other income 1,144,395.00
Economic Development Zone Industrialization Policy
1,140,400.00 Other income 1,140,400.00
Award and Supplementary Funds in 2019
The second batch of funds to support China's Sound
1,044,200.00 Other income 1,044,200.00
Valley construction project in 2020
2020 product testing fee subsidy 1,000,000.00 Other income 1,000,000.00
Hefei City 2020 smart home appliance (home) 1,000,000.00 Other income 1,000,000.00
207
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Amount
reckoned into
Item Amount Item
current
gain/loss
technology award and subsidy
Reward and subsidize national specialized, special and
1,000,000.00 Other income 1,000,000.00
new "little giant" enterprises
2021 Industrial Internet Policy Award and Subsidy 1,000,000.00 Other income 1,000,000.00
Incentives for major scientific and technological projects 1,000,000.00 Other income 1,000,000.00
"Double Top 100" Enterprise Rewards 1,000,000.00 Other income 1,000,000.00
2021 Special project for the construction of innovation
900,000.00 Other income 900,000.00
capability and industrial upgrading platform
Centre for external cooperation of the environmental
846,100.00 Deferred income 773,631.80
protection
Subsidy for revitalizing idle factories 843,732.00 Other income 843,732.00
Key chip and module for transducer used and detection
760,000.00 Deferred income
capacity building
Modern service industry development policy funds 714,500.00 Other income 714,500.00
2020 undertake industrial transfer to promote the
652,039.00 Other income 652,039.00
innovation and development of processing trade funds
Talent subsidy 616,436.00 Other income 616,436.00
Technology Insurance Grant 600,000.00 Other income 600,000.00
Skills Upgrading Training Program 600,000.00 Other income 600,000.00
Patent reward 515,800.00 Other income 515,800.00
2021 innovation platform funding for “Three Re- &
500,000.00 Other income 500,000.00
Creating”
ntellectual property funds 500,000.00 Other income 500,000.00
Artificial Intelligence Project Grants 414,000.00 Other income 414,000.00
Land Use Tax Return for Q4 of 2020 400,534.76 Other income 400,534.76
The first batch of scientific and technological innovation
400,000.00 Other income 400,000.00
policy high-level title awards in 2020
Property Tax Rebate for Q4 of 2020 373,459.10 Other income 373,459.10
2021 special awards and subsidies for energy
347,600.00 Other income 347,600.00
conservation and ecological construction
Personal tax handling fee refund 333,648.78 Other income 333,648.78
Zhongshan City Increases Incentive Projects for
Enterprises with Outstanding Contribution to Stabilizing 300,000.00 Other income 300,000.00
Foreign Trade
2019 District-level Industrial Policy Science and
300,000.00 Other income 300,000.00
Technology Innovation Policy
Overseas investment insurance subsidy 290,171.00 Other income 290,171.00
Hefei Standardization Policy Award and Subsidy 290,000.00 Other income 290,000.00
Subsidies for scientific and technological innovation
281,000.00 Other income 281,000.00
projects
208
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Amount
reckoned into
Item Amount Item
current
gain/loss
Equipment Subsidy 265,400.00 Other income 265,400.00
2021 technological transformation and financial
incremental contribution incentive policy awards and 259,100.00 Other income 259,100.00
subsidies
2021 special funds for industrial development in
250,000.00 Other income 250,000.00
Zhongshan City
Policies support the separation of main and auxiliary
249,845.00 Other income 249,845.00
enterprises
Incentives for "Innovative and Entrepreneurial Teams at
200,000.00 Other income 200,000.00
the Start-up Stage"
Provincial service-oriented manufacturing demonstration
200,000.00 Other income 200,000.00
enterprise bonus
Design achievement industrialization project subsidy 200,000.00 Other income 200,000.00
Anhui Province Manufacturing High-end Brand
200,000.00 Other income 200,000.00
Cultivation Enterprise Project Award and Subsidy
2020 Annual Outstanding Enterprise Award Fund 200,000.00 Other income 200,000.00
2020 High-quality Development Several Supporting
170,000.00 Other income 170,000.00
Policy Awards
2020 special funds for port logistics 135,660.00 Other income 135,660.00
2020 supporting industry linkage development 128,100.00 Other income 128,100.00
Military-civilian integration insurance premium subsidy 127,451.00 Other income 127,451.00
Outstanding Contribution Award for Enterprises to
120,000.00 Other income 120,000.00
Promote High-Quality Development
2020 Science and Technology Innovation Policy Award
and Subsidy for Economic and Technological 104,000.00 Other income 104,000.00
Development Zone
Total 110,483,284.80 86,859,797.84
VII. Changes of cons olidation 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: nil
6. Subsidiary newly established:
Shareholding
New merger Net asset at Net profit in
Name of company
reasons ratio year-end Current Year
Anhui Ling'an Medical
Investment 63.2683% 8,748,630.52 -1,251,369.48
Equipment Co., Ltd
209
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
7. Subsidiary merger by absorption
Name of company Equity ratiobeforeabsorption (%) Timeforabsorption
Guangzhou Meiling Electric Appliances Marketing Co., Ltd 100 November 2021
Tianjin Meiling Electric Appliances Marketing Co., Ltd 100 November 2021
Tai yuan Meiling Electric Appliances Marketing Co., Ltd 100 November 2021
In November 2021,Hefei Meiling Electrical Marketing Co., Ltd (hereinafter referred to Meiling Marketing) purchase
20% equity of Guangzhou Meiling Electric Appliances Marketing Co., Ltd.(hereinafter referred to Guangzhou Meiling)
from minority shareholder Chen Wenyan. Later, Hefei Meiling Group Holdings Limited (hereinafter referred to Meiling
Group) purchase 100% equity of Guangzhou Meiling from Meiling Marketing, purchase 100% equity of Tianjian
Meiling Electric Appliances Marketing Co., Ltd.(hereinafter referred to Tianjin Meiling) from Meiling Marketing and
Jiangxi Meiling Electric Appliance Co., Ltd, and purchase 100% equity of Tai yuan Meiling Electric Appliances
Marketing Co., Ltd.(hereinafter referred to Tai yuan Meiling) from Meiling Marketing for absorption merger. As of
December 31, 2021, all three acquired companies have not yet completed their business cancellation.
VIII. Equity in other entity
1. Equity in subsidiary
(1) Composition of the enterprise group
Shareholding ratio（%)
Mainoffice Registration
Subsidiary Businessnature Indirectl Acquireby
place place Directly
y
Zhongke Meiling Cryogenic Technology Manufacturing and
Hefei Hefei 63.2683 Investment
Co., Ltd.1) sales
Software
Sichuan Hongmei Intelligent Technology2) Mianyang Mianyang 100 Investment
development
Manufacturing and
Mianyang Meiling Refrigeration Co., Ltd.3) Mianyang Mianyang 95 5 Investment
sales
Jiangxi Meiling Electric Appliance Co., Manufacturing and
Jingdezhen Jingdezhen 98.75 1.25 Investment
Ltd. 4) sales
Hefei Meiling Wulian Technology Co., Software
Hefei Hefei 100 Investment
Ltd5) development
Hefei Meiling Electrical Marketing Co.,
Hefei Hefei Sales 99.82 0.18 Investment
Ltd6)
Jinan Xiangyou Electric Appliances
Jinan Jinan Sales 93.4 Investment
Marketing Co., Ltd 7)
Wuhan Meizirong Electrical Marketing Co.,
Wuhan Wuhan Sales 92 Investment
Ltd 8)
Zhengzhou Meiling Electric Appliances Zhengzho
Zhengzhou Sales 100 Investment
Marketing Co., Ltd 9) u
Enterprise
combined
Hefei Meiling Nonferrous Metal Products Manufacturing and
Hefei Hefei 100 under the
Co., Ltd.10) sales
different
control
210
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Shareholding ratio（%)
Mainoffice Registration
Subsidiary Businessnature Indirectl Acquireby
place place Directly
y
Enterprise
Changhong Meiling Ridian Technology Manufacturing and combined
Zhongshan Zhongshan 99.0361
Co., Ltd.11) sales under the same
control
CHANGHONG MEILING
Jakapta Jakapta Sales 100 Investment
ELECTRICINDON ESIA,PT 12)
ChanghongRubaTradingCompany(Private)
Pakistan Pakistan Sales 60 Investment
Limited 13)
Enterprise
Sichuan Changhong Air-conditioner Co., Manufacturing and combined
Mianyang Mianyang 100
Ltd. 14) sales under the same
control
Enterprise
Zhongshan Changhong Electric Co., Manufacturing and combined
Zhongshan Zhongshan 90 10
Ltd.15) sales under the same
control
Enterprise
combined
Manufacturing and
Hefei Meiling Group Holdings Limited16) Hefei Hefei 100 under the
sales
different
control
Enterprise
combined
Meiling Equator Household Appliance Manufacturing
Hefei Hefei 100 under the
(Hefei) Co., Ltd. 17) and sales
different
control
Enterprise
combined
Manufacturing
Hefei Equator Appliance Co., Ltd. 18) Hefei Hefei 100 under the
and sales
different
control
Hong Yuan Ground Energy Heat Pump Manufacturing
Mianyang Mianyang 51 Investment
Tech. Co., Ltd19) and sales
Ground Energy Heat Pump Tech. Manufacturing
Zhongshan Zhongshan 51 Investment
(Zhongshan) Co., Ltd. 20) and sales
Meiling CANDY Washing Machine Co., Manufacturing
Hefei Hefei 60 Investment
Ltd. 21) and sales
Guangzhou Changhong Trading Co.,
Guangzhou Guangzhou Sales 100 Investment
Ltd.22)
Hebei Hongmao Household Appliance Manufacturing and 99.036
Handan Handan Investment
Technology Co., Ltd23) sales 1
R&D of
Anhui Tuoxing Technology Co., Ltd.24) Hefei Hefei 63.2683 Investment
technology
CH-Meiling.International (Philippines)
Philippines Philippines Sales 100 Investment
Inc.25)
Hefei Changhong Meiling Life Appliances
Hefei Hefei Sales 70 Investment
Co., Ltd. 26)
Anhui Ling'an Medical Equipment Co., Ltd Manufacturing
Lu'an Lu'an 63.2683 Investment
27) and sales
Note：
211
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
1) Zhongke Meiling Cryogenic Technology Co., Ltd. (hereinafter referred to as Zhongke Meiling), the predecessor of
which was Zhongke Meiling Cryogenic Technology Limited Liability Company, was established on 29 October 2002
by joint contribution from the Company and Technical Institute of Physics and Chemistry, CAS (“TIPC”), with
registered capital of 60 million yuan upon the establishment, among which, the Company made capital contribution of
42 million yuan (including the assets in specie at the consideration of 35,573,719.70 yuan as evaluated by Beijing
Zhongzheng Appraisal Co., Ltd. with issuance of the Appraisal Report (ZZPBZ(2002)No.029) and cash contribution of
6,426,280.30 yuan) accounting for 70% of the aforesaid registered capital, and TIPC made capital contribution of 18
million yuan 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 BOD 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 96, 431,978.25 yuan 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 2nd BOD 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
212
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
2019 (Revised Version), the number of shares to be issued this time does not exceed 3,907,900 shares (including
3,907,900 shares), the issue price is not less than 2.16 yuan per share, and the raised funds are expected to not exceed
8,441,064.00 yuan (including 8,441,064.00 yuan). After the completion of the additional issue, the company’s share
capital increased to 72,548,200 shares, which was verified by [No. XYZH/2020CDA30002] “Capital Verification
Report” issued by Shine Wing Certified Public Accountants (LLP), and the Company’s shareholding ratio was
63.2683%.
2) Sichuan Hongmei Intelligent Technology Co., Ltd. (hereinafter referred to as Hongmei Intelligent) was established
on Jan. 24, 2014. It is a limited company jointly invested by the Company and Mianyang Meiling Refrigeration Co.,
Ltd., being approved by the Industrial and Commerce Bureau of Peicheng District, Mianyang City. The company owes
registered capital of 5 million yuan, including 4.95 million yuan contributed by Changhong Meiling Company in cash,
accounted for 99% of the registered capital; Mianyang Meiling Refrigeration Co., Ltd. contributed 50000 yuan 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 50 million yuan upon establishment, of which, the Company invested 45 million yuan,
accounting for 90% of the registered capital; Zhongke Meiling Company invested 5 million yuan, 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 50 million yuan in capital of
Mianyang Meiling, of which 95 million yuan invested by the Company, a 95% of total register capital while 5 million
yuan 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 50 million yuan, 49.375 million yuan invested by the Company, 98.75% in total register
capital while 0.625 million yuan invested by Mianyang Meiling , a 1.25% in total register capital occupied. The initial
investment 10.50 million yuan was received dated 13 May 2011 with 10 million yuan from the Company and 0.5
million yuan 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 39.5 million yuan was
fully funded on 28 July 2011, the Company contributed 39.375 million yuan while Mianyang Meiling Company
invested 125,000 yuan, 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)
213
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
established on January 21, 2019 with registered capital of 10 million yuan, it is the wholly-owned
subsidiary of the Company. On March 19, 2019, the Company contributed 6 million yuan.
6) Hefei Meiling Electric Appliances Marketing Co., Ltd (hereinafter referred to as Meiling Marketing) is the limited
company jointly invested by the Company and Mianyang Meiling Company on 21 Oct. 2009. Registered capital and
paid-up capital were 10 million yuan, including 9.9 million yuan invested by the Company, a 99% of the registered
capital; Mianyang Meiling Company contributed 0.1 million yuan, 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 45
million yuan, registered capital amounting to 55 million yuan, including 54.9 million yuan contributed by the Company,
a 99.82% of the registered capital, while Mianyang Meiling invested 0.1 million yuan, 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 3 million yuan; Meiling Marketing invested 1.08 million yuan, 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 5 million yuan; Meiling Marketing invested 4.60 million yuan, 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 3 million yuan; Meiling Marketing invested 1.08 million yuan,
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) 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 24,286,808.00 yuan after transference, and was not
214
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
the joint-venture any more.
11) 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 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
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 Chang yuan 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.
215
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
12) CHANGHONG MEILING ELECTRIC INDONESIA, PT.(hereinafter referred to as Indonesia Meiling) 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.
13) 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%.
14) 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 200 million yuan upon establishment, of which, Sichuan Changhong invested 298
million yuan( 210,088,900 yuan invested by monetary capital while 87,911,100 yuan invested by real material),
equivalent to 198 million yuan shares, accounting for 99% of the registered capital; and Changhong Chuangtou
invested 3 million yuan, accounting for 1% of the registered capital with equivalent of 2 million yuan shares. The
registered capital receipt was verified by the verification report [CGYYZ (2008) No. 177] of Sichuan Guang yuan
Certified Public Accountants Co., Ltd. and [HLTHYZ (2008) No. 12-006] of Sichuan Henglitai Certified Public
Accountants Co., Ltd. In December 2009, the Company obtained 100% equity of Changhong Air-conditioner by
consolidated under the same control. In 2017, the Company increased capital of 650 million yuan to Changhong Air
Conditioner, after capital increased, registered capital of Sichuan Changhong comes to 850 million yuan from 200
million yuan, shareholding still counted as 100%.
15) 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 72 million yuan, including 69.3 million yuan biding for the estate/ non-estate from original
Zhongshan Sanrong Air-conditioner Co., Ltd. And its patent use-right of 2.7 million yuan, accounting for 90% of the
registered capital; Chine Minmetals invested 8 million yuan 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 36 million yuan to Zhongshan Changhong, and Changhong AC increased 4 million yuan.
216
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
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
64 million yuan to Zhongshan Changhong according to the existing shareholding ratio, among which the capital
increase of the Company was 57.6 million yuan, and the capital increase of Changhong Air Conditioning was 6.4
million yuan. After the completion of this capital increase, the registered capital Zhongshan Changhong shall increase
to184 million yuan, the shareholding ratio of the company and Changhong Air Conditioning remained unchanged and
was still 90% and 10%, of which the Company invested 165.6 million yuan, accounting for 90% of the registered
capital, Changhong Air Conditioning invested 18.4 million yuan, accounting for 10% of the registered capital. In March
2020, in accordance with the Company’s overseas development strategy and the operation and development needs of its
subsidiaries, the Company and its wholly-owned subsidiary Changhong Air Conditioning increased capital of 150
million yuan to Zhongshan Changhong according to the existing shareholding ratios, of which the Company increased
capital of 135 million yuan, Changhong Air-Conditioning increased capital of 15 million yuan. After the completion of
capital increase, the registered capital of Zhongshan Changhong has increased to 334 million yuan. The Company’s and
Changhong’s shareholding ratios in Zhongshan Changhong remain unchanged at 90% and 10%, of which the Company
funded 300.6 million yuan, accounting for 90% of the registered capital, while Changhong Air Conditioning funded
33.4 million yuan, accounting for 10% of the registered capital.
16) 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 113.2 million yuan. 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 80 million yuan, and has been verified by the
[AD (2010) YZD No. 016] from Anhui Auding CPAs Co., Ltd.
17) Meiling Equator Household Appliance (Hefei) Co., Ltd. (hereinafter referred to as Equator Household Appliance) was the
Sino-foreign joint venture jointly set up by original Meiling Group and EQUATOR INVESTMENTS (USA) INC. (EQUATOR
for short), which have been approved by the [SWZWFZZ(2004) No.0103] of Approval Certificate of Foreign
Enterprise from People’s Government of Anhui Province. Its registered capital was US$ 3 million upon establishment,
of which, Sino company invested US$ 2.25 million in machinery equipment, accounting 75% of the registered capital
while foreign company invested US$ 0.5 million in monetary capital and US$ 0.25 million in intangible assets,
amounting to US$0.75 million, accounting 25% of the registered capital. The above mentioned investment verified by
the verification report of [WYAYZ (2004) No. 135] from Anhui Yongan CPAs Co., Ltd. In July 2007, approved by
[HWJ (2007) No.136] from Foreign Trade Economic Cooperation Bureau of Hefei City, 25% equity held by
EQUATOR transferred to Anhui Meiling Electric Co., Ltd. Totally. The Company’s register capital came into
24,793,200 yuan 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.
18) 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 12 million yuan, 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
217
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
total registered capital. The investment being verified by [WYAZ (2004) No. 135] from Anhui Yongan CPAs Co., Ltd.
19) Hong Yuan Ground Energy Heat Pump Technology Co., Ltd. (hereinafter referred to as Hong Yuan 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 Hengyou yuan 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; Hengyou yuan Technology Development Group Co., Ltd.
invested 24.5 million yuan in cash, a 49% in registered capital.
20) Hong Yuan Ground Energy Heat Pump Tech. (Zhongshan) Co., Ltd.(hereinafter referred to as Hong yuan
Zhongshan) was established and invested on 18 July 2017 with registered capital of 15 million yuan, The Hong Yuan
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 shareholders of the Hong yuan Zhongshan decided to increase capital of 30 million yuan,
and contributed by the shareholder Hong Yuan Ground Energy; thus registered capital of Hong yuan Zhongshan up to
45 million yuan
21) 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.
22) 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
23) 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.
24) Anhui Tuoxing Technology Co., Ltd. (hereinafter referred to as Tuoxing Technology) was established on 20 May
2019 with registered capital of 10 million yuan and it is the subsidiary of Zhongke Meiling with fully-owned
establishment. As of December 31, 2020, actually 5 million yuan contributed.
25) 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,
26) Hefei Changhong Meiling Life Appliances Co., Ltd. (hereinafter referred to as Meiling Life Appliances) was
established on 24 December 2020, jointly established by the Company and Ningbo Hongling Enterprise Management
Partnership (Limited Partnership). 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. The Company and Ningbo Hongling Enterprise Management Partnership (Limited Partnership)
completed the capital contribution on January 21, 2021 and January 18, 2021 respectively.
27) Anhui Ling’an Medical Equipment Co., Ltd. (hereinafter referred to as Ling’an Medical) was established on 4
218
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
September 2021, which is a wholly-owned subsidiary of Zhongke Meiling, and registered capital of 10 million yuan.
On June 29, 2021, Zhongke Meiling actually contributed 10 million yuan, accounting for 100% of the registered
capital.
(2) Major non-wholly-owned subsidiary
Dividend
Gains/losses attributable Balance of
Shareholding distributed to
Subsidiary to minority in Current minority’s interest
ratio of minority minority announced
Year at year-end
in Current Year
Zhongke Meiling 36.7317% 23,907,061.53 1,598,892.00 91,122,295.57
Hong Yuan
49.00% 3,941,800.36 21,053,600.64
Ground Energy
Ridian Technology 0.9639% 22,662.77 1,311,488.89
Meiling Life
30% 9,109,552.54 24,109,552.54
Appliances
(3) Financial information for major non-wholly-owned subsidiary
Balance at year-end
Subsidiary
Currentassets Non-currentassets Totalassets Currentliability Non-currentliability Totalliabilities
Zhongke
371,876,985.25 153,246,440.33 525,123,425.58 260,324,038.65 16,724,150.21 277,048,188.86
Meiling
Hong Yuan
Ground 167,092,910.84 23,932,195.59 191,025,106.43 147,765,923.82 292,650.70 148,058,574.52
Energy
Ridian
Technolog 256,926,013.09 46,283,555.98 303,209,569.07 165,637,349.70 718,345.11 166,355,694.81
y
Meiling
Life 421,039,031.17 169,482.39 421,208,513.56 340,843,338.42 - 340,843,338.42
Appliances
(Continued)
Balance at year-begin
Subsidiary Non-current Non-current
Currentassets Totalassets Currentliability Totalliabilities
assets 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
Hong Yuan
110,464,175.51 25,279,044.46 135,743,219.97 100,181,345.93 639,832.66 100,821,178.59
Ground Energy
Ridian
572,516,245.87 50,889,561.24 623,405,807.11 488,419,038.99 484,047.64 488,903,086.63
Technology
(Continued)
Current Year
Subsidiary Operation Total comprehensive Cash flow from
Net profit
income income operation activity
Zhongke Meiling 464,899,620.09 65,085,510.92 65,085,510.92 70,137,269.97
219
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Subsidiary Current Year
Hong Yuan Ground
347,880,649.74 8,044,490.53 8,044,490.53 60,316,055.84
Energy
Ridian Technology 309,467,627.62 2,351,153.78 2,351,153.78 -243,853,078.73
Meiling Life
1,136,846,527.85 30,365,175.14 30,365,175.14 262,095,425.65
Appliances
(Continued)
Last Year
Subsidiary Total comprehensive Cash flow from
Operation income Net profit
income operation activity
Zhongke
372,599,049.12 46,042,179.72 46,042,179.72 140,128,507.32
Meiling
Hong Yuan
Ground 269,504,660.68 -5,335,244.47 -5,335,244.47 51,692,147.85
Energy
Ridian
1,083,259,433.15 41,169,846.86 41,169,846.86 51,830,916.29
Technology
(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
Guangzhou
Item Total
Meiling
Original ratio of shares held 98.00%
Equity purchased from minority 2.00%
Share issuance
Ratio of shares held at period-end 100.00%
Cost of purchasing minority equity 1.00 1.00
Less: Ratio of the net assets measured by equity ratio while acquiring the -872,218.1
-872,218.17
subsidiary 7
Equity dilution for shares issuance
Balance 872,219.17 872,219.17
Including: Capital public reserve adjusted 872,219.17 872,219.17
In 2021, due to the acquisition of minority shareholders’ equity of Guangzhou Meiling by subsidiary, the difference
between the newly acquired long-term equity investment and the share of net assets of the subsidiary calculated on an
ongoing basis from the date of purchase based on the newly acquired shareholding amounted as 872,219.17 yuan,
which was included in the capital reserves.
3. Equity in joint venture or associate enterprise
220
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
(1) Major joint venture or associate enterprise
Shareholding Accounting
ratio（%) treatment for
Main
Registe Business investment of
Joint venture or associate enterprise office
r place nature Direc Indir joint venture or
place
tly ectly associate
enterprise
Associated companies：
1.Changhong Ruba Electric Company Lahore, Manufacture
Lahore 40.00 Equity
(Private)Ltd. Pakistan s, sales
2.Hefei Xingmei Assets Management Rental,
Hefei Hefei 48.28 Equity
Co., Ltd. agency
3.Sichuan Zhiyijia Network Technology Mianyan
Mianyang Sales 50.00 Equity
Co., Ltd. g
R & D,
4.Hong Yuan Ground Energy Heat Tech. Mianyan
Mianyang sales, 49.00 Equity
Co., Ltd. g
after-sales
5.Sichuan Tianyou Guigu Technology Mianyan Manufacture
Mianyang 25.00 Equity
Co., Ltd. g s, sales
R&D,
6.Chengdu Guigu Environmental Tech.
Chengdu Chengdu manufacturi 25.00 Equity
Co., Ltd
ng and sales
(2) Financial information for major Joint venture: nil
(3) Financial information for associate enterprise
Balance at year-end/Current Year
Changhong Hefei Sichuan Sichuan
Ruba Chengdu
Item Xingmei Zhiyijia Hong Yuan Ground Tianyou
Guigu
Electric Assets Network Energy Heat Tech. Guigu
Environmental
Company(Pri Management Technology Co., Ltd. Technology
Tech. Co., Ltd
vate)Ltd. Co., Ltd. Co., Ltd. Co., Ltd.
Current assets 89,100,592.52 44,306,769.36 3,562,320,255.30 39,551,631.60 12,815,224.66 49,157,432.66
Including:
cash and cash 3,601,992.73 15,092,065.72 1,735,103,036.41 41,161.98 6,480,537.53 28,252,926.12
equivalent
Non-current
37,062,073.18 2,831,773.02 7,359,768.31 8,286,398.47 12,352.49 1,325,807.70
assets
Total assets 126,162,665.70 47,138,542.38 3,569,680,023.61 47,838,030.07 12,827,577.15 50,483,240.36
Current
141,231,591.66 6,054,518.27 3,478,330,845.92 5,571,194.80 913,812.93 16,058,351.93
liability
Non-current
1,418,903.14 2,525,317.50
liability
Total
141,231,591.66 6,054,518.27 3,479,749,749.06 5,571,194.80 913,812.93 18,583,669.43
liabilities
Minority's
1,102,582.39
interest
Equity
attributable to
shareholder -15,068,925.96 41,084,024.11 89,930,274.55 42,266,835.27 11,913,764.22 30,796,988.54
of parent
company
221
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Balance at year-end/Current Year
Changhong Hefei Sichuan Sichuan
Ruba Chengdu
Item Xingmei Zhiyijia Hong Yuan Ground Tianyou
Guigu
Electric Assets Network Energy Heat Tech. Guigu
Environmental
Company(Pri Management Technology Co., Ltd. Technology
Tech. Co., Ltd
vate)Ltd. Co., Ltd. Co., Ltd. Co., Ltd.
Share of net
assets
-6,027,570.38 19,835,366.84 44,965,137.28 20,710,749.28 2,978,441.06 7,699,247.14
measured by
shareholding
Adjustment
--Goodwill 821,877.28 1,416,227.93
Unrealized
profit of the
internal 11,702,988.94 80,635.11 4,252.12 7,510.11
downstream
transactions
Unrealized
profit of the
internal
upstream
transactions
Other 6,027,570.38
Book value of
the equity
investment 19,835,366.84 34,084,025.62 20,630,114.17 2,974,188.94 9,107,964.96
for associate
enterprise
Fair value of
equity
investment
for the
affiliates with
consideration
publicly
Operation
212,975,934.56 11,191,030,556.90 24,577,536.47 7,983,502.89 38,128,313.52
income
Financial
2,974,146.42 443,380.59 -51,236,312.07 2,374.70 -105,819.09 -374,408.78
expenses
Income tax
2,735,333.56 4,852,902.82 784,678.81
expenses
Net profit -6,640,369.42 26,945,094.97 4,472,169.87 -2,953,746.66 495,803.24 12,183,906.56
Other -648,154.63
Other
comprehensiv 6,538,313.32
e income
Capital
-130,171.30
reserve
Total
comprehensiv -102,056.10 26,945,094.97 3,693,843.94 -2,953,746.66 495,803.24 12,183,906.56
e income
Dividend
received from
associate 1,025,445.14
enterprise in
Current Year
222
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
(Continued)
Balance at year-begin / Last Year
Changhong Hefei Sichuan Hong Yuan Sichuan Chengdu
Item Ruba Xingmei Zhiyijia Ground Tianyou Guigu
Electric Assets Network Energy Guigu Environment
Company(Pri Manageme Technology Heat Tech. Technology al Tech. Co.,
vate)Ltd. nt Co., Ltd. Co., Ltd. Co., Ltd. Co., Ltd. Ltd
Current assets 68,287,114.60 626,580.92 3,812,812,831.86 40,622,241.47 21,480,727.03 17,707,474.44
Including: cash and
5,536,272.95 119,477.66 2,996,535,171.99 52,958.51 10,450,786.16 2,371,663.95
cash equivalent
Non-current assets 45,830,745.35 18,704,537.29 1,226,646.52 10,161,277.73 12,352.49 13,175,012.62
Total assets 114,117,859.95 19,331,118.21 3,814,039,478.38 50,783,519.20 21,493,079.52 30,882,487.06
Current liability 129,084,729.80 5,192,189.07 3,724,855,931.57 5,562,937.27 10,075,118.54 19,463,087.16
Non-current
117,900.00 1,886,933.19
liability
Total liabilities 129,084,729.80 5,192,189.07 3,724,973,831.57 5,562,937.27 10,075,118.54 21,350,020.35
Minority's interest 822,750.86
Equity attributable
to shareholder of -14,966,869.86 14,138,929.14 89,065,646.81 45,220,581.93 11,417,960.98 8,709,715.85
parent company
Share of net assets
measured by -5,986,747.94 6,826,274.99 44,532,823.41 22,158,085.15 2,854,490.25 2,177,428.96
shareholding
Adjustment
--Goodwill 821,877.28 3,887,027.34
Unrealized profit of
the internal
49,697.83 6,191,361.16 54,975.58 4,398.74 24,449.53
downstream
transactions
Unrealized profit of
the internal
upstream
transactions
Other 5,937,050.11
Book value of the
equity investment
6,826,274.99 39,163,339.53 22,103,109.57 2,850,091.51 6,040,006.77
for associate
enterprise
Fair value of equity
investment for the
affiliates with
consideration
publicly
Operation income 99,936,478.74 8,580,600,638.78 54,153,864.35 735,204.43 12,146,793.64
Financial expenses 10,579,123.20 205,425.73 -36,003,354.14 3,384.58 -404,094.60 179,807.87
Income tax
1,422,278.04 3,181,576.89
expenses
Net profit -18,981,775.32 -3,579,823.40 8,132,610.22 -2,554,686.34 190,298.81 -8,962,600.48
Net profit of
223
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Balance at year-begin / Last Year
Changhong Hefei Sichuan Hong Yuan Sichuan Chengdu
Item Ruba Xingmei Zhiyijia Ground Tianyou Guigu
Electric Assets Network Energy Guigu Environment
Company(Pri Manageme Technology Heat Tech. Technology al Tech. Co.,
vate)Ltd. nt Co., Ltd. Co., Ltd. Co., Ltd. Co., Ltd. Ltd
discontinuing
operation
Other
comprehensive
income
Total
comprehensive -18,981,775.32 -3,579,823.40 8,132,610.22 -2,554,686.34 190,298.81 -8,962,600.48
income
Dividend received
from associate
enterprise in
Current Year
(4) Financial summary for non-important Joint venture and associate enterprise
Balance at year-end/Current Balance at year-begin /Last
Item
Year Year
Associated companies：
Total book value of investment
Total amount measured by shareholding
ratio
--Net profit -904,106.72 -251,256.41
--Other comprehensiveincome
-- Total comprehensiveincome -904,106.72 -251,256.41
(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
Hefei Meiling Solar Energy Technology Co., Ltd and Changhong Ruba Electric Company(Private)Ltd
have losses above the quota.
(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, tradable 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
224
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
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
entered into several forward exchange contracts with banks. Fair value of the forward exchange
contract which has been recognized as derivative financial instrument has been included in profits and
losses. As export business is increasing, if risks that are out of control of the Company occur such as
appreciation of RMB, the Company will mitigate the relevant risks by adjusting its sales policy.
The Company’s interest rate risk arises from bank borrowings and interest-bearing debt. Financial
liabilities at floating rate expose the Company to cash flow interest rate risk, and financial liabilities at
fixed rate expose the Company to fair value interest rate risk. The Company will determine the
respective proportion of contracts at fixed and floating rates based on the prevailing market conditions.
As of 31 December 2021, the interest-bearing debts mainly referred to borrowing contracts at floating
rate denominated in RMB with total amount of 610,000,000.00 yuan, the floating rate loan contract
measured by RMB amounted as 498,000,000.00 yuan in total; 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 Year and fair value measurement level
Fair value at year-end
Item
1st level 2nd level 3rd level Total
I. Continuous fair value
— — — —
measurement
(i)Trading financial assets 17,997,086.19 17,997,086.19
1.Financial assets measured at fair
value and whose changes are 17,997,086.19 17,997,086.19
included in current gains/losses
Including: Derivative financial
17,997,086.19 17,997,086.19
assets
(ii) Other non-current financial
44,018,952.27 537,961,488.43 581,980,440.70
assets
(iii)Receivables financing 1,808,109,301.56 1,808,109,301.56
Total assets continuously
17,997,086.19 44,018,952.27 2,346,070,789.99 2,408,086,828.45
measured at fair value
(iv) Trading financial liability 12,304,272.41 12,304,272.41
1. Financial liabilities measured by
fair value and with variation 12,304,272.41 12,304,272.41
reckoned into current gains/losses
225
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Fair value at year-end
Item
1st level 2nd level 3rd level Total
Including: Derivative financial
12,304,272.41 12,304,272.41
liability
Total liabilities continuously
12,304,272.41 12,304,272.41
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 companies. For long-term
investments in fund companies, the assessed book value can represent the best estimate of fair value
within the scope.
4. Qualitative and quantitative information on the valuation techniques used and important parameters
for continuous and non-continuous third-level fair value measurement items
The items with fair value measurement refers to the investment of Sichuan Changhong Group Finance
Co., Ltd and Huishang Bank Co., Ltd. As the unlisted equity instrument, the fair value are estimated
using a range of valuation models, the assumptions used are not supported by observable market
prices or interest rates. We believes that the fair value and their changes estimated by valuation
techniques are reasonable and are the most appropriate values at the balance sheet date.
XI. Related parties and related transaction
(I) Relationship of related parties
1. Controlling shareholder and ultimate controller
(1) Controlling shareholder and ultimate controller
Regist Share-holdin Voting rights
Controlling shareholder and Business
ration Registered capital g ratio in the ratio in the
ultimate controller nature
place Company Company
Sichuan Changhong Electric Co., Miany Manufactur
4,616,244,222.00 26.98% 26.98%
Ltd. ang e and sales
Sichuan Changhong Electronics Holding Group is the controlling shareholder of Sichuan Changhong Electric Co., LTD,
and the SASAC Mianyang office holds 100.00% equity interests of Sichuan Changhong Electronic Holding Group,
which means that SASAC Mianyang office is the ultimate controller of the Company.
(2) Register capital and change thereof of controlling shareholder
226
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Increased
Decreased
in
Controlling shareholder Balance at year-begin in Current Balance at year-end
Current
Year
Year
Sichuan Changhong Electric Co.,
4,616,244,222.00 4,616,244,222.00
Ltd.
(3) Shares held by the controlling shareholder and its changes on equity
Amount of shares held Shareholding ratio
Controlling shareholder Balance at Balance at Ratio at Ratio at
year-end year-begin year-end year-beginning
Sichuan Changhong Electric Co.,
281,832,434.00 281,832,434.00 26.98% 26.98%
Ltd.
2. Subsidiary
Found more in Note “VIII. 1 (1) Enterprise group composition”
3. Joint venture and associated enterprise
Major Joint venture and associated enterprise of the Company found more in Note “VIII. 3 (1) major
joint venture and associated enterprise”. Other Joint venture and associated enterprise that have related
transactions occurred with the Company in Current Year or occurred in last period, and with balance
results:
Joint venture and associated
Relationship with the company
enterprise
Hefei Meiling Solar Energy
Associated enterprise of subsidiary Meiling Group
Technology Co., Ltd.
Changhong Ruba Electric Company
Associated enterprise of subsidiary Zhongshan Changhong
(Private) Ltd
Hefei Xingmei Assets Management
Associated enterprise of the Company
Co., Ltd.
Sichuan Zhiyijia Network Associated enterprise of the Company, has the same controlling shareholder and
Technology Co., Ltd. actual control of the Company
Hong Yuan Ground Energy Heat
Associated enterprise of subsidiary Changhong Air-conditioner
Tech. Co., Ltd.
Sichuan Tianyou Guigu Technology
Associated enterprise of subsidiary Changhong Air-conditioner
Co., Ltd.
Chengdu Guigu Environmental
Associated enterprise of subsidiary Changhong Air-conditioner
Tech. Co., Ltd
4.Other related party
Other related party Relationship with the company
Control by same controlling shareholder and ultimate
CHANGHONG ELECTRIC MIDDLE EAST FZCO
controller
Control by same controlling shareholder and ultimate
Changhong Europe Electric s.r.o
controller
CHANGHONG (HK) TRADING LIMITED Control by same controlling shareholder and ultimate
227
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Other related party Relationship with the company
controller
Control by same controlling shareholder and ultimate
CHANGHONGELECTRIC(AUSTRALIA)PTY.LTD.
controller
Control by same controlling shareholder and ultimate
Orion.PDP.Co.,ltd
controller
Control by same controlling shareholder and ultimate
PT.CHANGHONG ELECTRIC INDONESIA
controller
Beijing Changhong Technology Co., Ltd. Subsidiary of the controlling shareholder’s associate
Control by same controlling shareholder and ultimate
Chengdu Changhong Electronic Technology Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Guangdong Changhong Electronics Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Guang yuan Hongcheng Industrial Co., Ltd.
controller
Guang yuan Changhong Electronic Technology Co., Control by same controlling shareholder and ultimate
Ltd. controller
Control by same controlling shareholder and ultimate
Hefei Changhong Industrial 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
Hunan Grand-Pro Intelligent Tech. Company
controller
Control by same controlling shareholder and ultimate
Lejiayi Chain Management Co., Ltd.
controller
Control by same controlling shareholder and ultimate
081 Electronic Group Co., Ltd.
controller
Mianyang Highly Electric Co., Ltd. Associates of Controlling shareholder
Control by same controlling shareholder and ultimate
Mianyang Huafeng Interconnect Technology Co., Ltd
controller
Mianyang Science & Technology City Big Data Control by same controlling shareholder and ultimate
Technology Co., Ltd. controller
Control by same controlling shareholder and ultimate
Sichuan Aichuang Science & Technology Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Sichuan Ailink Technology Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Sichuan Ansify Technology Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Sichuan Aoku Technology Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Sichuan Hongcheng Construction Engineering 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 Hongwei Technology Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Sichuan Hongxin Software Co., Ltd.
controller
Associates of other enterprises controlled by the same
Sichuan Hongyu Metal Manufacturing Co., Ltd.
Controlling shareholder
Control by same controlling shareholder and ultimate
Sichuan Huafeng Enterprise Group Co., Ltd.
controller
228
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Other related party Relationship with the company
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
Sichuan Service Exp. Appliance Service Chain Co., Control by same controlling shareholder and ultimate
Ltd. controller
Control by same controlling shareholder and ultimate
Sichuan Qiruik Technology Co., Ltd.
controller
Sichuan Hongran Green Energy Co., Ltd. Associates of Controlling shareholder
Control by same controlling shareholder and ultimate
Sichuan Changhong Package Printing Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Sichuan Changhong Power Source Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Sichuan Changhong Electronic Products Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Sichuan Changhong Electronic 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 Changhong International Hotel Co., Ltd.
controller
Sichuan Changhong International Travel Service Co., Control by same controlling shareholder and ultimate
Ltd. controller
Sichuan Changhong Jineng Sunshine Technology Co., Control by same controlling shareholder and ultimate
Ltd. controller
Control by same controlling shareholder and ultimate
Sichuan Changhong Group Finance 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 Education Technology Co., Ltd.
controller
Sichuan Changhong Jiechuang Lithium Technology Control by same controlling shareholder and ultimate
Co., Ltd. controller
Sichuan Changhong Precision Electronics Tech. Co., Control by same controlling shareholder and ultimate
Ltd. controller
Control by same controlling shareholder and ultimate
Sichuan Changhong Minsheng Logistics Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Sichuan Changhong Electric Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Sichuan Changhong Device Technology Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Sichuan Changhong Network Technology Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Sichuan Changhong Property Service Co., Ltd.
controller
Sichuan Changhong New Energy Technology Co., Control by same controlling shareholder and ultimate
Ltd. controller
Control by same controlling shareholder and ultimate
Sichuan Changhong Intelligent Technology Co., Ltd.
controller
Sichuan Changhong Intelligent Manufacturing Control by same controlling shareholder and ultimate
Technology Co., Ltd. controller
229
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Other related party Relationship with the company
Control by same controlling shareholder and ultimate
Sichuan Changhong Real Estate Co., Ltd.
controller
Sichuan Changxin Refrigeration Parts Co., Ltd. Associates of Controlling shareholder
Control by same controlling shareholder and ultimate
Yuanxin Financial Lease Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Changhong Grand-Pro Technology 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
Changhong Huayi Compressor Co., Ltd.
controller
(ii) Related transactions
(1) Purchasing commodity
Current Year Last Year
Related party Content (In 10 thousand
(In 10 thousand yuan)
yuan)
Purchasing
Sichuan Changhong Electric Co., Ltd. 72,217.32 59,503.77
commodity
Purchasing
Sichuan Changhong Electric Co., Ltd. 50,571.94 34,964.57
commodity
Purchasing
Changhong Huayi Compressor Co., Ltd. 41,837.98 46,880.45
commodity
Purchasing
Sichuan Changxin Refrigeration Parts Co., Ltd. 39,411.46 19,221.74
commodity
Purchasing
Sichuan Changhong Jijia Fine Co., Ltd. 36,519.86 23,064.49
commodity
Purchasing
Mianyang Highly Electric Co., Ltd. 21,625.23 13,419.75
commodity
Purchasing
Sichuan Aichuang Science & Technology Co., Ltd. 10,843.83 12,606.33
commodity
Purchasing
Sichuan Changhong Package Printing Co., Ltd. 10,505.94 6,016.51
commodity
Purchasing
Changhong.Ruba.Electric.Company (Private) Ltd. 7,078.47 7,610.32
commodity
Purchasing
Sichuan Ailink Technology Co., Ltd. 2,519.71 1,796.54
commodity
Purchasing
Sichuan Changhong Electronic Products Co., Ltd. 2,376.25 1,588.38
commodity
Sichuan Changhong Precision Electronics Tech. Co., Purchasing
1,689.38 1,003.39
Ltd. commodity
Purchasing
Sichuan Zhiyijia Network Technology Co., Ltd. 1,218.16 371.14
commodity
Changhong International Holdings (Hong Kong) Co., Purchasing
1,017.63 2,655.02
Ltd. commodity
Purchasing
Hefei Changhong Industrial Co., Ltd. 942.42 632.25
commodity
Purchasing
Guangdong Changhong Electronics Co., Ltd. 459.10 293.63
commodity
230
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Current Year Last Year
Related party Content (In 10 thousand
(In 10 thousand yuan)
yuan)
Purchasing
Hunan Grand-Pro Intelligent Tech. Company 152.35 880.73
commodity
Sichuan Service Exp. Appliance Service Chain Co., Purchasing
5.00 0.19
Ltd. commodity
Purchasing
081 Electronic Group Co., Ltd. 4.95 22.7
commodity
Sichuan Changhong Intelligent Manufacturing Purchasing
2.86 13.32
Technology Co., Ltd. commodity
Sichuan Changhong New Energy Technology Co., Purchasing
2.70 3.97
Ltd. commodity
Purchasing
Sichuan Changhong International Hotel Co., Ltd. 2.00
commodity
Purchasing
Sichuan Jiahong Industrial Co., Ltd. 0.60 0.03
commodity
Purchasing
Sichuan Hongwei Technology Co., Ltd. 0.32
commodity
Purchasing
Chengdu Guigu Environmental Tech. Co., Ltd 0.18
commodity
Purchasing
Hong Yuan Ground Energy Heat Tech. Co., Ltd. 379.24
commodity
Sichuan Changhong Electronics Holding Group Co., Purchasing
1.78
Ltd. commodity
Guang yuan Changhong Electronic Technology Co., Purchasing
0.88
Ltd. commodity
Purchasing
Lejiayi Chain Management Co., Ltd. 0.33
commodity
Total 301,005.64 232,931.45
2. Accept the services
Related party Content Current Year Last Year
Accept the
Sichuan Changhong Minsheng Logistics Co., Ltd. 585,263,836.50 414,991,661.95
services
Accept the
Sichuan Service Exp. Appliance Service Chain Co., Ltd. 250,718,083.94 275,753,460.11
services
Sichuan Hongxin Software Co., Ltd. Accept the
10,856,658.91 1,120,832.04
services
Changhong International Holdings (Hong Kong) Co., Accept the
5,988,668.60
Ltd. services
Sichuan Qiruik Technology Co., Ltd. Accept the
5,980,909.80
services
Accept the
Sichuan Changhong Electric Co., Ltd. 5,745,731.73 13,064,499.47
services
Accept the
Sichuan Jiahong Industrial Co., Ltd. 3,895,237.37 533,487.03
services
Sichuan Changhong Electronics Holding Group Co., Accept the
1,681,313.86 1,428,582.09
Ltd. services
Accept the
Sichuan Hongwei Technology Co., Ltd. 1,521,897.41 4,359,668.84
services
231
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Related party Content Current Year Last Year
Accept the
Guangdong Changhong Electronics Co., Ltd. 1,128,280.15 491,458.60
services
Guang yuan Changhong Electronic Technology Co., Accept the
1,023,131.47 640,277.20
Ltd. services
Sichuan Changhong Intelligent Manufacturing Accept the
748,609.37 16,375.22
Technology Co., Ltd. services
Accept the
Sichuan Changhong Property Service Co., Ltd. 707,185.86 3,044,428.21
services
Sichuan Changxin Refrigeration Parts Co., Ltd. Accept the
395,895.95
services
Accept the
Sichuan Changhong International Hotel Co., Ltd. 217,834.37 51,449.87
services
Accept the
Sichuan Aichuang Science & Technology Co., Ltd. 131,378.07 16,037.74
services
Accept the
Sichuan Changhong Electric Co., Ltd. 127,233.28 448,031.09
services
Accept the
Sichuan Changhong Electronic Products Co., Ltd. 126,956.03
services
Orion.PDP.Co.,ltd Accept the
125,271.39
services
Sichuan Changhong Gerun Environmental Protection Accept the
56,580.19 86,666.96
Tech. Co., Ltd. services
Sichuan Changhong International Travel Service Co., Accept the
26,557.92 245,433.88
Ltd. services
Accept the
Sichuan Changhong Jijia Fine Co., Ltd. 11,830.19 1,002,110.60
services
Accept the
Sichuan Changhong Network Technology Co., Ltd. 32,908.38
services
Sichuan Hongmofang Network Technology Co., Ltd. Accept the
2,122.64
services
Sichuan Zhiyijia Network Technology Co., Ltd. Accept the
-465,679.53 185,590.06
services
Total 876,013,402.83 717,515,081.98
3. Purchase fuel and power
Related party Content Current Year Last Year
Sichuan Changhong Electric Co., Ltd. Accept fuel power 19,977,416.41 18,457,320.38
Guangdong Changhong Electronics Co., Ltd. Accept fuel power 1,204,692.22 1,122,776.22
Sichuan Hongran Green Energy Co., Ltd. Accept fuel power 879,342.58 488,435.52
Changhong Huayi Compressor Co., Ltd. Accept fuel power 451,658.41 511,235.41
Hefei Changhong New Energy Technology Co., Ltd. Accept fuel power 344,936.77 366,759.90
Sichuan Changhong Property Service Co., Ltd. Accept fuel power 30,285.20 20,789.37
Total 22,888,331.59 20,967,316.80
4. Sales of goods
Related party Content Current Year Last Year
232
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
(In 10 thousand (In 10 thousand
yuan) yuan)
Sales of
Sichuan Zhiyijia Network Technology Co., Ltd. 650,051.03 436,631.25
goods
Sales of
CHANGHONG (HK) TRADING LIMITED 29,876.00 48,410.22
goods
Sales of
Sichuan Changhong Electric Co., Ltd. 19,808.97 23,483.31
goods
Sales of
Changhong International Holdings (Hong Kong) Co., Ltd. 16,426.96 13,452.31
goods
Sales of
CHANGHONG ELECTRIC (AUSTRALIA) PTY.LTD. 12,752.56 14,983.14
goods
Sales of
Sichuan Changxin Refrigeration Parts Co., Ltd. 9,921.49 6,957.18
goods
Sales of
Changhong Europe Electric s.r.o 7,082.16 5,483.90
goods
Sales of
Sichuan Changhong Jijia Fine Co., Ltd. 4,867.94 5,460.30
goods
Sales of
Orion.PDP.Co.,ltd 3,967.89 2,634.90
goods
Sales of
Changhong Ruba Electric Company( Private) Ltd. 3,262.43 1,079.90
goods
Sales of
Hong Yuan Ground Energy Heat Tech. Co., Ltd. 2,426.82 5,204.57
goods
Sales of
Sichuan Service Exp. Appliance Service Chain Co., Ltd. 655.49 403.10
goods
Sales of
Sichuan Changhong Electric Co., Ltd. 426.60 1,036.21
goods
Sales of
CHANGHONG ELECTRIC MIDDLE EAST FZCO 349.94 1,158.97
goods
Sales of
Chengdu Guigu Environmental Tech. Co., Ltd 175.73 134.34
goods
Sichuan Changhong Jiechuang Lithium Technology Co., Sales of
126.35
Ltd. goods
Sales of
Changhong Grand-Pro Technology Co., Ltd. 123.88
goods
Sales of
Sichuan Tianyou Guigu Technology Co., Ltd. 114.92
goods
Sales of
Lejiayi Chain Management Co., Ltd. 53.10 549.82
goods
Sales of
Guangdong Changhong Electronics Co., Ltd. 32.01 158.46
goods
Sales of
PT CHANGHONG ELECTRIC INDONESIA 27.80 70.35
goods
Sales of
Sichuan Changhong Minsheng Logistics Co., Ltd. 27.05 2.77
goods
Sales of
Sichuan Aichuang Science & Technology Co., Ltd. 23.03 724.53
goods
Sales of
Sichuan Changhong Electronics Holding Group Co., Ltd. 18.06
goods
Sales of
Sichuan Changhong Power Source Co., Ltd. 16.99 1.81
goods
Guang yuan Changhong Electronic Technology Co., Ltd. Sales of 15.43 0.35
233
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Current Year Last Year
Related party Content (In 10 thousand (In 10 thousand
yuan) yuan)
goods
Sales of
Sichuan Ansify Technology Co., Ltd. 12.51
goods
Sales of
Sichuan Hongxin Software Co., Ltd. 12.11
goods
Sales of
Hefei Changhong Industrial Co., Ltd. 7.89 0.43
goods
Sales of
Sichuan Changhong Real Estate Co., Ltd. 6.63 1.31
goods
Sales of
Changhong Huayi Compressor Co., Ltd. 3.76
goods
Sichuan Changhong Intelligent Manufacturing Sales of
1.41 1.64
Technology Co., Ltd. goods
Sales of
Beijing Changhong Technology Co., Ltd. 0.98 1.86
goods
Sales of
Sichuan Hongmofang Network Technology Co., Ltd. 0.49 1.73
goods
Sales of
Sichuan Changhong Network Technology Co., Ltd. 0.39
goods
Sales of
Sichuan Changhong Device Technology Co., Ltd. 0.08
goods
Sales of
081 Electronic Group Co., Ltd. 0.08
goods
Sichuan Changhong Gerun Environmental Protection Sales of
572.25
Tech. Co., Ltd. goods
Sales of
Sichuan Changhong International Hotel Co., Ltd. 70.00
goods
Sales of
Sichuan Changhong New Energy Technology Co., Ltd. 31.18
goods
Sales of
Mianyang Huafeng Interconnect Technology Co., Ltd 20.92
goods
Sales of
Sichuan Huafeng Enterprise Group Co., Ltd. 4.77
goods
Sales of
Sichuan Changhong Electronic Products Co., Ltd. 35.40
goods
Sales of
Sichuan Changhong Education Technology Co., Ltd. -86.91
goods
Total 762,676.96 568,676.27
5. Providing services
Related party Content Current Year Last Year
Sichuan Changhong Electric Co., Ltd. Providing services 4,177,122.00 2,656,646.85
Sichuan Aichuang Science & Technology Co., Ltd. Providing services 1,983,316.06 887,575.07
Changhong Huayi Compressor Co., Ltd. Providing services 1,245,677.91 566,037.73
Changhong Grand-Pro Technology Co., Ltd. Providing services 1,165,255.05
Sichuan Changhong Jiechuang Lithium Technology Co., Ltd. Providing services 1,088,990.83
Sichuan Changhong Network Technology Co., Ltd. Providing services 610,337.12 991,434.55
234
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Related party Content Current Year Last Year
Yuanxin Financial Lease Co., Ltd. Providing services 493,408.67
Guangdong Changhong Electronics Co., Ltd. Providing services 491,029.63
Sichuan Changhong Jijia Fine Co., Ltd. Providing services 271,359.98 135,692.00
Sichuan Changhong Minsheng Logistics Co., Ltd. Providing services 261,996.34 7,098.11
Hong Yuan Ground Energy Heat Tech. Co., Ltd. Providing services 216,981.14
Sichuan Changhong Electric Co., Ltd. Providing services 193,737.60 80,098.48
Sichuan Changxin Refrigeration Parts Co., Ltd. Providing services 120,655.05
Sichuan Ansify Technology Co., Ltd. Providing services 110,932.11
Sichuan Changhong Electronic Technology Co., Ltd. Providing services 94,339.62
Sichuan Changhong Device Technology Co., Ltd. Providing services 90,613.21 105,597.33
Sichuan Changhong Property Service Co., Ltd. Providing services 85,797.50
Sichuan Changhong International Hotel Co., Ltd. Providing services 79,350.88 36,054.42
081 Electronic Group Co., Ltd. Providing services 47,230.97
Chengdu Guigu Environmental Tech. Co., Ltd Providing services 31,941.00 15,714.60
Sichuan Zhiyijia Network Technology Co., Ltd. Providing services 22,279.24 9,433.96
Sichuan Huafeng Enterprise Group Co., Ltd. Providing services 13,205.66 316,610.42
Sichuan Changhong Electronic Products Co., Ltd. Providing services 11,021.81
Sichuan Changhong Gerun Environmental Protection Tech. Co., Ltd. Providing services 9,433.96
Sichuan Service Exp. Appliance Service Chain Co., Ltd. Providing services 7,200.00
Sichuan Changhong Precision Electronics Tech. Co., Ltd. Providing services 5,084.91
Sichuan Hongwei Technology Co., Ltd. Providing services 1,440.00
Hefei Changhong Industrial Co., Ltd. Providing services 707.50
Sichuan Ailink Technology Co., Ltd. Providing services 73.58
Mianyang Huafeng Interconnect Technology Co., Ltd Providing services 199,401.74
Sichuan Changhong Intelligent Technology Co., Ltd. Providing services 547,177.50
Sichuan Changhong Intelligent Manufacturing Technology Co., Ltd. Providing services 494,545.00
Sichuan Changhong New Energy Technology Co., Ltd. Providing services 113,853.33
Sichuan Hongxin Software Co., Ltd. Providing services 50,367.92
Sichuan Changhong Education Technology Co., Ltd. Providing services 21,681.42
Sichuan Changhong Real Estate Co., Ltd. Providing services -39,175.45
Sichuan Changhong Electronics Holding Group Co., Ltd. Providing services -10,800.00
Total 12,919,719.33 7,195,844.98
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.
6. Provide fuel power
Related party Content Current Year Last Year
Sichuan Changhong Electric Co., Ltd. Provide fuels power 7,008,427.14 7,268,571.71
Sichuan Changhong Device Technology Co., Ltd. Provide fuels power 710,348.59 844,734.88
235
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Related party Content Current Year Last Year
Sichuan Changhong Jijia Fine Co., Ltd. Provide fuels power 150,554.97 158,726.95
Changhong International Holdings (Hong Kong) Co., Ltd. Provide fuels power 101,309.73
Sichuan Changhong Minsheng Logistics Co., Ltd. Provide fuels power 57,695.61 86,738.00
Sichuan Zhiyijia Network Technology Co., Ltd. Provide fuels power 50,005.57 45,684.57
Sichuan Changhong Precision Electronics Tech. Co., Ltd. Provide fuels power 16,948.89 15,872.50
Guangdong Changhong Electronics Co., Ltd. Provide fuels power 16,227.17 38,436.16
Sichuan Jiahong Industrial Co., Ltd. Provide fuels power 13,065.53
Mianyang Science & Technology City Big Data Technology Co., Ltd. Provide fuels power 6,763.23
Sichuan Changhong Network Technology Co., Ltd. Provide fuels power 6,484.24
Sichuan Hongwei Technology Co., Ltd. Provide fuels power 3,137.33
Total 8,111,517.67 8,488,215.10
7.Related rental
(1) Rent out
Leasing income Leasing income
Lessor Lessee Type of assets
in Current Year in last year
Changhong Sichuan Changhong Electric Co.,
Workshop 1,741,654.86 1,441,574.10
Meiling Ltd.
Changhong Sichuan Changhong Jijia Fine
Workshop 678,679.11 541,594.80
Meiling Co., Ltd.
Changhong Sichuan Changhong Electric Co.,
Apartment 499,971.43 447,269.14
Meiling Ltd.
Changhong Sichuan Changhong Electric Co.,
Warehouse 152,522.28 282,430.19
Meiling Ltd.
Changhong Hefei Changhong Industrial Co.,
Apartment 262,055.04 228,637.23
Meiling Ltd.
Changhong Sichuan Changhong Minsheng
Apartment 214,858.71 211,594.52
Meiling Logistics Co., Ltd.
Changhong Sichuan Zhiyijia Network
Apartment 188,256.88 209,364.69
Meiling Technology Co., Ltd.
Changhong Sichuan Service Exp. Appliance
Apartment 145,590.48 156,252.00
Meiling Service Chain Co., Ltd.
Changhong Sichuan Changhong Jijia Fine
Warehouse 88,689.08 139,040.18
Meiling Co., Ltd.
Changhong Sichuan Changhong Jijia Fine
Apartment 118,400.00 122,133.76
Meiling Co., Ltd.
Changhong Sichuan Service Exp. Appliance
Office 47,040.00 43,633.32
Meiling Service Chain Co., Ltd.
Changhong Sichuan Changhong Precision
Apartment 49,200.00 39,456.00
Meiling Electronics Tech. Co., Ltd.
Changhong Sichuan Aichuang Science &
Warehouse 37,519.68 34,987.18
Meiling Technology Co., Ltd.
Changhong Sichuan Hongwei Technology
Apartment 31,200.00
Meiling Co., Ltd.
Changhong Sichuan Changhong Jijia Fine
Forklift 26,439.91
Meiling Co., Ltd.
Changhong Sichuan Service Exp. Appliance
Forklift 9,600.00
Meiling Service Chain Co., Ltd.
236
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Leasing income Leasing income
Lessor Lessee Type of assets
in Current Year in last year
Changhong Sichuan Ailink Technology Co.,
Warehouse 2,549.43 2,686.20
Meiling Ltd.
Changhong Sichuan Aichuang Science &
Forklift 2,532.50
Meiling Technology Co., Ltd.
Changhong Hefei Changhong Industrial Co.,
Warehouse 6,475.48 2,023.58
Meiling Ltd.
Sichuan Changhong Minsheng
Zhongke Meiling Workshop 783,911.94 2,352,570.64
Logistics Co., Ltd.
Sichuan Changhong Electric Co.,
Jiangxi Meiling Workshop 822,288.36 839,228.54
Ltd.
Sichuan Changhong Minsheng
Jiangxi Meiling WorkshopOffice 9,142.86 9,142.86
Logistics Co., Ltd.
Changhong Huayi Compressor
Jiangxi Meiling Warehouse 4,457.14 3,771.43
Co., Ltd.
Hefei Changhong Industrial Co.,
Jiangxi Meiling Warehouse 2,971.43
Ltd.
Sichuan Aichuang Science &
Jiangxi Meiling Warehouse 11,885.71
Technology Co., Ltd.
Sichuan Ailink Technology Co.,
Jiangxi Meiling Warehouse 742.86
Ltd.
Changhong Sichuan Changhong Jijia Fine
Workshop 3,679,016.28 6,131,693.75
Air-conditioner Co., Ltd.
Changhong Sichuan Changhong Electric Co., House and
5,925,054.84 5,925,054.84
Air-conditioner Ltd. buildings
Changhong Sichuan Changhong Electric Co.,
Equipment 2,401,421.34 2,401,421.34
Air-conditioner Ltd.
Changhong Sichuan Changhong Electric Co.,
Equipment 672,368.04 665,334.62
Air-conditioner Ltd.
Changhong Sichuan Changhong Jijia Fine
Equipment 618,666.19 567,110.67
Air-conditioner Co., Ltd.
Changhong Sichuan Changhong Electric Co.,
Workshop 621,737.53 467,599.18
Air-conditioner Ltd.
Changhong Sichuan Changxin Refrigeration Processing
200,000.00 300,000.00
Air-conditioner Parts Co., Ltd. equipment of U
Changhong Chengdu Guigu Environmental House and
28,403.67 28,403.67
Air-conditioner Tech. Co., Ltd buildings
Changhong Sichuan Changhong Electric Co.,
Conference Room 1,834.86
Air-conditioner Ltd.
Changhong Sichuan Huafeng Enterprise
Conference Room 917.43
Air-conditioner Group Co., Ltd.
Zhongshan Guangdong Changhong
Office building 149,076.80
Changhong Electronics Co., Ltd.
Zhongshan Sichuan Changhong Electric Co.,
2# living area 58,964.52 84,813.23
Changhong Ltd.
Zhongshan Sichuan Changhong Precision
2# living area 63,000.00 78,313.34
Changhong Electronics Tech. Co., Ltd.
Zhongshan Sichuan Changhong Minsheng Parts of the office
44,297.16 31,188.42
Changhong Logistics Co., Ltd. building rent-out
Zhongshan Sichuan Changhong Device
2# living area 3,735.44 10,861.40
Changhong Technology Co., Ltd.
Zhongshan Guangdong Changhong
2# living area 50,928.93
Changhong Electronics Co., Ltd.
237
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Leasing income Leasing income
Lessor Lessee Type of assets
in Current Year in last year
Ridian Sichuan Changhong Device
Workshop 2,160,845.66 1,710,745.15
Technology Technology Co., Ltd.
Ridian Sichuan Changhong Minsheng
Workshop 76,190.48
Technology Logistics Co., Ltd.
Ridian Sichuan Hongwei Technology
Workshop 47,314.29 45,257.14
Technology Co., Ltd.
Total 22,445,534.08 25,852,061.66
(2) Lessee of related parties
Leasing Leasing
Type of
Lessor Lessee expense in expense in last
assets
Current Year year
Zhongshan Workshop
Guangdong Changhong Electronics Co., Ltd. 1,015,654.71 1,015,654.68
Changhong leasing
Zhongshan Staff
Guangdong Changhong Electronics Co., Ltd. 178,332.78
Changhong dormitory
Changhong Workshop
Hefei Changhong Industrial Co., Ltd. 310,142.91
Meiling leasing
Changhong
VISA
Sichuan Changhong Electric Co., Ltd. Air-conditione 341,178.01
Laboratories
r
Changhong
Workshop
Sichuan Changhong Electric Co., Ltd. Air-conditione 2,567,272.94
leasing
r
Changhong
Warehouse
Sichuan Changhong Electric Co., Ltd. Air-conditione 634,664.55
rental
r
Changhong
Sichuan Changhong Electronics Holding Staff
Air-conditione 51,240.49 208,690.40
Group Co., Ltd. dormitory
r
Changhong
Sichuan Changhong Electronics Holding
Air-conditione Store rental 125,548.80 125,548.80
Group Co., Ltd.
r
Changhong
Staff
Sichuan Jiahong Industrial Co., Ltd. Air-conditione 183,993.72
dormitory
r
Changhong
Staff
Sichuan Changhong Property Service Co., Ltd. Air-conditione 3,000.00
dormitory
r
Ridian Staff
Guangdong Changhong Electronics Co., Ltd. 126,347.33 55,294.11
Technology dormitory
Ridian Staff
Sichuan Changhong Electric Co., Ltd. 48,257.03
Technology dormitory
Mianyang Workshop
Sichuan Changhong Electric Co., Ltd. 3,261,455.02 3,246,239.65
Meiling leasing
Mianyang Staff
Sichuan Jiahong Industrial Co., Ltd. 14,286.07
Meiling dormitory
Mianyang Flower
Sichuan Jiahong Industrial Co., Ltd. 6,953.77
Meiling rental
Sichuan Changhong Electronics Holding Mianyang Staff
4,363.60 48,785.77
Group Co., Ltd. Meiling dormitory
238
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Leasing Leasing
Type of
Lessor Lessee expense in expense in last
assets
Current Year year
Mianyang Flower
Sichuan Changhong Property Service Co., Ltd. 2,317.92 9,271.70
Meiling rental
Meiling
Sichuan Changhong Electric Co., Ltd. Office 885,487.38
Group
Jiangxi Staff
Changhong Huayi Compressor Co., Ltd. 41,792.55 53,246.28
Meiling dormitory
Chengdu Changhong Electronic Technology Hongmei
Office 688,263.70 624,277.12
Co., Ltd. Intelligent
Sichuan Changhong Minsheng Logistics Co., Hong yuan Warehouse
73,962.22
Ltd. Zhongshan rental
Hong yuan Staff
Guangdong Changhong Electronics Co., Ltd. 91,367.95 103,432.19
Zhongshan dormitory
Total 6,341,868.77 9,804,455.38
8.Related guarantee
Maximum
Completed
guarantee
(Y/N)
amount
Secured party Sponsored party Start Date due
(In 10
thousand
yuan)
Changhong Meiling Jiangxi Meiling 10,000.00 2020-04-09 2021-04-09 Y
Changhong Meiling Jiangxi Meiling 10,000.00 2021-07-08 2022-07-08 N
Changhong
Changhong Meiling 5,000.00 2021-09-24 2022-09-24 N
Air-conditioner
Changhong
Changhong Meiling 15,000.00 2021-12-07 2022-12-06 N
Air-conditioner
Changhong Meiling Changhong Ruba 2,103.51 2019-12-23 2021-01-15 Y
Changhong Meiling Changhong Ruba 1,831.50 2020-12-16 2021-12-07 Y
Changhong Meiling Ridian Technology 3,000.00 2020-03-14 2021-03-13 Y
Changhong Meiling Ridian Technology 4,000.00 2020-03-30 2021-03-31 Y
Changhong Meiling Ridian Technology 6,500.00 2020-08-22 2021-08-22 Y
Changhong Meiling Ridian Technology 5,000.00 2020-07-03 2021-07-02 Y
Changhong Meiling Ridian Technology 4,000.00 2021-03-31 2022-03-31 N
Changhong Meiling Ridian Technology 5,000.00 2021-06-09 2021-12-31 Y
Changhong Meiling Ridian Technology 3,000.00 2021-08-09 2022-08-08 N
Changhong Meiling Ridian Technology 4,000.00 2021-09-16 2022-09-15 N
Changhong Meiling Zhongke Meiling 2,000.00 2020-12-25 2021-09-26 Y
Changhong Meiling Zhongke Meiling 3,000.00 2020-09-22 2021-09-22 Y
Changhong Meiling Zhongke Meiling 2,000.00 2020-08-24 2021-08-24 Y
Changhong Meiling Zhongke Meiling 1,000.00 2020-11-19 2021-11-18 Y
Changhong Meiling Zhongke Meiling 1,000.00 2020-03-10 2021-03-10 Y
Changhong Meiling Zhongke Meiling 1,500.00 2020-06-01 2021-03-12 Y
239
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Maximum
Completed
guarantee
(Y/N)
amount
Secured party Sponsored party Start Date due
(In 10
thousand
yuan)
Changhong Meiling Zhongke Meiling 500.00 2020-06-30 2021-03-15 Y
Changhong Meiling Zhongke Meiling 5,000.00 2021-05-24 2022-05-24 N
Changhong Meiling Zhongke Meiling 6,000.00 2021-09-22 2022-09-22 N
Changhong Meiling Zhongke Meiling 2,000.00 2019-12-30 2020-11-22 Y
Changhong 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 Y
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 Y
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 Zhongshan Changhong 5,000.00 2021-07-22 2022-07-22 N
Changhong Meiling Zhongshan Changhong 5,000.00 2021-08-24 2022-08-23 N
Changhong Meiling Zhongshan Changhong 15,000.00 2021-08-09 2022-08-08 N
Changhong Meiling Non-ferrous Metals 1,000.00 2020-03-20 2021-03-05 Y
Changhong Meiling Meiling Group 6,000.00 2020-03-26 2021-03-26 Y
Changhong Meiling Meiling Group 10,000.00 2020-12-30 2021-12-29 Y
Changhong Meiling Meiling Group 5,000.00 2021-03-05 2022-03-05 N
Meiling Life
Changhong Meiling 2,000.00 2021-07-26 2022-07-26 N
Appliances
Meiling Life
Changhong Meiling 5,000.00 2021-07-29 2022-07-28 N
Appliances
Meiling Life
Changhong Meiling 5,000.00 2021-08-18 2022-08-08 N
Appliances
Meiling Life
Changhong Meiling 2,000.00 2021-10-13 2022-10-12 N
Appliances
Meiling Life
Changhong Meiling 4,000.00 2021-12-09 2022-11-02 N
Appliances
Zhongke Meiling Anhui Tuoxing 500.00 2021-04-01 2022-04-01 N
240
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Maximum
Completed
guarantee
(Y/N)
amount
Secured party Sponsored party Start Date due
(In 10
thousand
yuan)
Counter guarantee:
Jiangxi Meiling Changhong Meiling 10,000.00 2020-04-09 2021-04-09 Y
Jiangxi Meiling Changhong Meiling 10,000.00 2021-07-08 2022-07-08 N
Changhong
Changhong Meiling 5,000.00 2021-09-24 2022-09-24 N
Air-conditioner
Changhong
Changhong Meiling 15,000.00 2021-12-07 2022-12-06 N
Air-conditioner
ChanghongRuba Changhong Meiling 2,103.51 2019-12-23 2021-01-15 Y
ChanghongRuba Changhong Meiling 1,831.50 2020-12-16 2021-12-07 Y
Ridian Technology Changhong Meiling 3,000.00 2020-03-14 2021-03-13 Y
Ridian Technology Changhong Meiling 4,000.00 2020-03-30 2021-03-31 Y
Ridian Technology Changhong Meiling 6,500.00 2020-08-22 2021-08-22 Y
Ridian Technology Changhong Meiling 5,000.00 2020-07-03 2021-07-02 Y
Ridian Technology Changhong Meiling 4,000.00 2021-03-31 2022-03-31 N
Ridian Technology Changhong Meiling 5,000.00 2021-06-09 2021-12-31 Y
Ridian Technology Changhong Meiling 3,000.00 2021-08-09 2022-08-08 N
Ridian Technology Changhong Meiling 4,000.00 2021-09-16 2022-09-15 N
Zhongke Meiling Changhong Meiling 2,000.00 2020-12-25 2021-09-26 Y
Zhongke Meiling Changhong Meiling 3,000.00 2020-09-22 2021-09-22 Y
Zhongke Meiling Changhong Meiling 2,000.00 2020-08-24 2021-08-24 Y
Zhongke Meiling Changhong Meiling 1,000.00 2020-11-19 2021-11-18 Y
Zhongke Meiling Changhong Meiling 1,000.00 2020-03-10 2021-03-10 Y
Zhongke Meiling Changhong Meiling 1,500.00 2020-06-01 2021-03-12 Y
Zhongke Meiling Changhong Meiling 500.00 2020-06-30 2021-03-15 Y
Zhongke Meiling Changhong Meiling 5,000.00 2021-05-24 2022-05-24 N
Zhongke Meiling Changhong Meiling 6,000.00 2021-09-22 2022-09-22 N
Zhongke Meiling Changhong Meiling 2,000.00 2019-12-30 2020-11-22 Y
Zhongshan
Changhong Meiling 20,000.00 2020-06-12 2021-03-10 Y
Changhong
Zhongshan
Changhong Meiling 5,000.00 2020-03-09 2021-03-09 Y
Changhong
Zhongshan
Changhong Meiling 15,000.00 2020-01-10 2021-01-10 Y
Changhong
Zhongshan
Changhong Meiling 5,500.00 2020-03-15 2021-03-15 Y
Changhong
Zhongshan
Changhong Meiling 17,900.00 2020-04-14 2021-04-13 Y
Changhong
Zhongshan Changhong Meiling 20,000.00 2020-03-30 2021-03-30 Y
241
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Maximum
Completed
guarantee
(Y/N)
amount
Secured party Sponsored party Start Date due
(In 10
thousand
yuan)
Changhong
Zhongshan
Changhong Meiling 12,000.00 2020-04-28 2021-04-28 Y
Changhong
Zhongshan
Changhong Meiling 10,000.00 2020-08-31 2021-08-31 Y
Changhong
Zhongshan
Changhong Meiling 15,000.00 2020-07-03 2021-07-02 Y
Changhong
Zhongshan
Changhong Meiling 20,000.00 2021-04-08 2022-03-18 N
Changhong
Zhongshan
Changhong Meiling 18,000.00 2021-03-29 2022-03-29 N
Changhong
Zhongshan
Changhong Meiling 13,000.00 2021-03-03 2022-03-03 N
Changhong
Zhongshan
Changhong Meiling 10,000.00 2021-05-25 2022-05-25 N
Changhong
Zhongshan
Changhong Meiling 9,000.00 2021-03-15 2022-03-15 N
Changhong
Zhongshan
Changhong Meiling 20,000.00 2021-03-30 2022-03-30 N
Changhong
Zhongshan
Changhong Meiling 5,000.00 2021-07-22 2022-07-22 N
Changhong
Zhongshan
Changhong Meiling 5,000.00 2021-08-24 2022-08-23 N
Changhong
Zhongshan
Changhong Meiling 15,000.00 2021-08-09 2022-08-08 N
Changhong
Non-ferrous Metals Changhong Meiling 1,000.00 2020-03-20 2021-03-05 Y
Meiling Group Changhong Meiling 6,000.00 2020-03-26 2021-03-26 Y
Meiling Group Changhong Meiling 10,000.00 2020-12-30 2021-12-29 Y
Meiling Group Changhong Meiling 5,000.00 2021-03-05 2022-03-05 N
Meiling Life
Changhong Meiling 2,000.00 2021-07-26 2022-07-26 N
Appliances
Meiling Life
Changhong Meiling 5,000.00 2021-07-29 2022-07-28 N
Appliances
Meiling Life
Changhong Meiling 5,000.00 2021-08-18 2022-08-08 N
Appliances
Meiling Life
Changhong Meiling 2,000.00 2021-10-13 2022-10-12 N
Appliances
Meiling Life
Changhong Meiling 4,000.00 2021-12-09 2022-11-02 N
Appliances
Anhui Tuoxing Zhongke Meiling 500.00 2021-04-01 2022-04-01 N
9. Assets transfer, debt restructuring of related parties
Related party Type Current Year Last Year
Sichuan Changhong Intelligent Purchase and construction 9,990,763.76 4,920,208.93
242
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Related party Type Current Year Last Year
Manufacturing Technology Co., Ltd. of fixed assets
Construction of fixed
Sichuan Hongxin Software Co., Ltd. 3,912,026.22 613,207.54
assets
Sichuan Hongcheng Construction Construction of fixed
1,950,244.22
Engineering Co., ltd assets
Construction of fixed
Sichuan Changhong Electric Co., Ltd. 1,833,245.49
assets
Construction of fixed
081 Electronic Group Co., Ltd. 1,064,220.18
assets
Construction of fixed
Sichuan Huanyu Industrial Co., Ltd. 366,972.48 2,164,755.99
assets
Purchase of intangible
Sichuan Hongxin Software Co., Ltd. 141,509.43
assets
Guangdong Changhong Electronics Co., Ltd. Purchase of fixed assets 39,157.29
Sichuan Changhong Electric Co., Ltd. Purchase of fixed assets 1,654,600.00
Sichuan Zhiyijia Network Technology Co.,
Purchase of fixed assets 820,469.07
Ltd.
Sichuan Changhong Jineng Sunshine
Purchase of fixed assets 42,348.02
Technology Co., Ltd.
Sichuan Service Exp. Appliance Service
Purchase of fixed assets 5,238.94
Chain Co., Ltd.
Sichuan Changxin Refrigeration Parts Co.,
Purchase of fixed assets 1,894.30
Ltd.
Sichuan Changhong Electric Co., Ltd. Sales of fixed assets 339,000.00 39,611.48
Total 19,637,139.07 10,262,334.27
10. Other
Current Year (In 10 Last Year (In 10
Name of company Content
thousand yuan) thousand yuan)
Yuanxin Financial Financing business, financing expenses
49,202.19 6,466.21
Lease Co., Ltd. and financial leasing
11.Related transaction with Changhong Finance Company
(1) Saving balance
Interest income
from bank
Name of company Year-end balance Year-begin balance
saving in the
period
Changhong Meiling Co., Ltd. 1,750,741,958.39 1,860,047,247.52 49,976,396.40
Sichuan Changhong Air-conditioner Co., Ltd. 667,374,291.19 134,802,966.64 12,869,745.81
Zhongshan Changhong Electric Co., Ltd. 472,478,264.48 404,582,475.31 8,824,244.04
Hefei Changhong Meiling Life Appliances Co.,
Ltd. 204,429,613.95 1,388,149.46
Ground Energy Heat Pump Tech. (Zhongshan)
Co., Ltd. 117,428,653.82 69,211,263.89 1,659,241.27
Zhongke Meiling Cryogenic Technology Co.,
Ltd. 89,236,818.21 141,336,330.05 6,886,737.54
243
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Interest income
from bank
Name of company Year-end balance Year-begin balance
saving in the
period
Changhong Meiling Ridian Technology Co., Ltd. 78,870,573.40 162,196,324.57 2,070,691.51
Hebei Hongmao Household Appliance
Technology Co., Ltd 4,185,481.97 15,657,360.37 122,096.84
Hefei Meiling Group Holdings Limited 227,396.51 3,742.21 3,479.34
Anhui Tuoxing Technology Co., Ltd. 58,438.14 10,243,055.56 212,053.04
Mianyang Meiling Refrigeration Co., Ltd. 26,052.45 50,871.36 181.09
Hongyuan Ground Energy Heat Pump Tech. Co.,
Ltd 19,795.17 114,826.06 351.67
Jiangxi Meiling Electric Appliance Co., Ltd. 9,585.70 9,544.98 40.72
Total 3,385,086,923.38 2,798,256,008.52 84,013,408.73
(2) Discounting of notes
Bank Acceptance Bank Acceptance Discounting fee
Name of company Discounted face Amount of
Discount amount
value expenses
Changhong Meiling Co., Ltd. 717,895,322.83 710,633,931.03 7,261,391.80
Sichuan Changhong Air-conditioner Co., Ltd. 705,893,271.26 697,071,665.96 8,821,605.30
Hefei Changhong Meiling Life Appliances Co.,
39,073,382.76 38,849,602.17 223,780.59
Ltd.
Ground Energy Heat Pump Tech. (Zhongshan)
6,500,000.00 6,435,216.67 64,783.33
Co., Ltd.
Total 1,469,361,976.85 1,452,990,415.83 16,371,561.02
(3) Issuance of invoices
Name of company Issuer Bill amount Types
Sichuan Changhong Air-conditioner Sichuan Changhong Group
2,133,868,456.59 Bank acceptance
Co., Ltd. Finance Co., Ltd.
Sichuan Changhong Group
Changhong Meiling Co., Ltd. 751,170,773.81 Bank acceptance
Finance Co., Ltd.
Zhongshan Changhong Electric Co., Sichuan Changhong Group
522,970,416.38 Bank acceptance
Ltd. Finance Co., Ltd.
Sichuan Changhong Group
Hefei Meiling Group Holdings Limited 99,820,945.39 Bank acceptance
Finance Co., Ltd.
Hefei Changhong Meiling Life Sichuan Changhong Group
79,878,452.52 Bank acceptance
Appliances Co., Ltd. Finance Co., Ltd.
Zhongke Meiling Cryogenic Sichuan Changhong Group
75,218,800.86 Bank acceptance
Technology Co., Ltd. Finance Co., Ltd.
Ground Energy Heat Pump Tech. Sichuan Changhong Group
71,379,189.30 Bank acceptance
(Zhongshan) Co., Ltd. Finance Co., Ltd.
Changhong Meiling Ridian Technology Sichuan Changhong Group
48,666,158.90 Bank acceptance
Co., Ltd. Finance Co., Ltd.
Hebei Hongmao Household Appliance Sichuan Changhong Group
15,571,257.96 Bank acceptance
Technology Co., Ltd Finance Co., Ltd.
Sichuan Changhong Group
Anhui Tuoxing Technology Co., Ltd. 1,044,521.89 Bank acceptance
Finance Co., Ltd.
244
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Total 3,799,588,973.60
(4) Borrowings: Nil
(5) Receivable factoring: Nil
12.Remuneration for key management
Item Current Year (In 10 thousand yuan) Last Year (In 10 thousand yuan)
Total remuneration 803.56 346.88
Including: performance
incentive fund
(iii) Come and go balance with related parties
1. Receivable items
Balance at year-end Balance at year-begin
Item Related party Bad debt Bad debt
Book balance Book balance
provision provision
Sichuan Zhiyijia
Account
Network Technology 590,034,682.52 152,851,050.10 5,950.95
receivable
Co., Ltd.
CHANGHONGELEC
Account
TRIC(AUSTRALIA)P 55,903,139.06 82,523,745.73
receivable
TY.LTD.
Changhong
Account
International Holdings 35,985,886.24 971,525.15 23,280,926.68
receivable
(Hong Kong) Co., Ltd.
Changhong Ruba
Account
Electric 39,274,379.69 2,991,971.20 46,262,313.51 3,664,544.64
receivable
Company(Private)Ltd.
Account CHANGHONG(HK)T
14,593,546.00 74,561,075.45
receivable RADINGLIMITED
Account
Orion.PDP.Co.,ltd 7,923,855.47 1,365,471.85
receivable
Account Changhong Europe
3,382,179.18 7,285,475.46
receivable Electrics.r.o
Account Sichuan Changhong
2,512,637.87 569.25 1,648,021.88
receivable Electric Co., Ltd.
Sichuan Aichuang
Account
Science & Technology 1,595,719.32 1,235,293.51
receivable
Co., Ltd.
Hong Yuan Ground
Account
Energy Heat Tech. Co., 1,251,751.92 185,439.69 2,557,611.11 259,719.23
receivable
Ltd.
Account Changhong Grand-Pro
705,000.00
receivable Technology Co., Ltd.
Account Changhong Huayi
642,605.16
receivable Compressor Co., Ltd.
Account Lejiayi Chain
141,775.39 752,700.75 13,309.44
receivable Management Co., Ltd.
245
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Balance at year-end Balance at year-begin
Item Related party Bad debt Bad debt
Book balance Book balance
provision provision
CHANGHONGELEC
Account
TRICMIDDLEEASTF 120,716.04 1,641,684.42
receivable
ZCO
Sichuan Service Exp.
Account
Appliance Service 67,279.43 179,721.66
receivable
Chain Co., Ltd.
Account Sichuan Ansify
52,448.00
receivable Technology Co., Ltd.
Sichuan Changhong
Account
International Hotel 17,064.50 20,166.00
receivable
Co., Ltd.
Account Yuanxin Financial
7,852.07
receivable Lease Co., Ltd.
Sichuan Changhong
Account
Minsheng Logistics 6,619.80 12,173.16
receivable
Co., Ltd.
Guangdong
Account
Changhong Electronics 5,239.75 248.56 3,507.01
receivable
Co., Ltd.
Sichuan Hongmofang
Account
Network Technology 4,380.00
receivable
Co., Ltd.
Account PT.CHANGHONGEL 703,520.00
receivable ECTRICINDONESIA
Sichuan Changhong
Account
Network Technology 291,996.61
receivable
Co., Ltd.
Sichuan Changhong
Account
Electronic Products 375,287.92
receivable
Co., Ltd.
Account Sichuan Changhong
193,981.98
receivable Electric Co., Ltd.
Sichuan Changhong
Account
Intelligent
paid in 925,280.67 2,191,049.27
Manufacturing
advance
Technology Co., Ltd.
Account Sichuan Aichuang
paid in Science & Technology 684,000.00
advance Co., Ltd.
Account Sichuan Zhiyijia
paid in Network Technology 67,678.94
advance Co., Ltd.
Account
Hefei Changhong
paid in 38,029.06
Industrial Co., Ltd.
advance
Account
Sichuan Ailink
paid in 396.02
Technology Co., Ltd.
advance
Account Sichuan Changhong
paid in Minsheng Logistics 366,287.00
advance Co., Ltd.
Other 267,000.00
Changhong Grand-Pro
account
246
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Balance at year-end Balance at year-begin
Item Related party Bad debt Bad debt
Book balance Book balance
provision provision
receivable Technology Co., Ltd.
Other Sichuan Service Exp.
account Appliance Service 200,000.00 200,000.00
receivable Chain Co., Ltd.
Other Sichuan Changhong
account Jiechuang Lithium 129,000.00
receivable Technology Co., Ltd.
Other
Sichuan Changhong
account 59,857.21 2,657,173.57
Electric Co., Ltd.
receivable
Other Guangdong
account Changhong Electronics 25,899.43
receivable Co., Ltd.
Other
Sichuan Changhong
account 19,200.00
Power Source Co., Ltd.
receivable
Other
Sichuan Changhong
account 17,232.50
Jijia Fine Co., Ltd.
receivable
Other
Sichuan Changhong
account 299,373.25
Real Estate Co., Ltd.
receivable
Other Hunan Grand-Pro
account Intelligent Tech. 45,200.00
receivable Company
Other Sichuan Changhong
account International Hotel 39,550.00
receivable Co., Ltd.
Total 756,662,331.24 4,149,753.85 403,544,357.88 3,943,524.26
2.Payable items
Item Related party Balance at year-end Balance at year-begin
Account payable Sichuan Changhong Electric Co., Ltd. 27,523,349.71 44,726,533.64
Changhong International Holdings (Hong
Account payable 12,718,331.49 1,502,240.80
Kong) Co., Ltd.
Account payable Mianyang Highly Electric Co., Ltd. 8,324,553.75 10,035,029.02
Sichuan Changxin Refrigeration Parts
Account payable 7,599,199.65
Co., Ltd.
Sichuan Aichuang Science & Technology
Account payable 7,290,455.51 36,339,436.08
Co., Ltd.
Account payable Sichuan Changhong Jijia Fine Co., Ltd. 6,608,580.22 30,784,821.38
Sichuan Changhong Package Printing
Account payable 5,553,060.13 10,337,574.43
Co., Ltd.
Account payable Changhong Huayi Compressor Co., Ltd. 3,518,643.94 24,556,917.25
Account payable Sichuan Ailink Technology Co., Ltd. 3,014,723.46 3,067,909.39
Sichuan Changhong Precision Electronics
Account payable 2,450,482.58 877,946.47
Tech. Co., Ltd.
Account payable Sichuan Changhong Intelligent 1,911,174.67 962,930.89
247
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Item Related party Balance at year-end Balance at year-begin
Manufacturing Technology Co., Ltd.
Guangdong Changhong Electronics Co.,
Account payable 1,296,473.51 848,590.31
Ltd.
Sichuan Changhong Minsheng Logistics
Account payable 760,136.08 863,688.97
Co., Ltd.
Sichuan Service Exp. Appliance Service
Account payable 449,551.04 261,823.77
Chain Co., Ltd.
Hunan Grand-Pro Intelligent Tech.
Account payable 391,610.62 433,594.69
Company
Sichuan Changhong Electronic Products
Account payable 372,065.37 2,388,369.91
Co., Ltd.
Chengdu Changhong Electronic
Account payable 326,258.23
Technology Co., Ltd.
Account payable Sichuan Changhong Electric Co., Ltd. 115,854.26 48,150,899.09
Sichuan Changhong International Travel
Account payable 90,789.00 50,552.00
Service Co., Ltd.
Account payable 081 Electronic Group Co., Ltd. 53,196.86 136,168.13
Sichuan Hongcheng Construction
Account payable 50,000.00
Engineering Co., ltd
Account payable Sichuan Hongxin Software Co., Ltd. 28,301.89
Sichuan Hongyu Metal Manufacturing
Account payable 14,662.40
Co., Ltd.
Sichuan Changhong New Energy
Account payable 8,000.40 5,333.60
Technology Co., Ltd.
Sichuan Changhong Power Source Co.,
Account payable 1,870.82 1,870.82
Ltd.
Sichuan Changhong Device Technology
Account payable 0.18
Co., Ltd.
Hong Yuan Ground Energy Heat Tech.
Account payable 0.01
Co., Ltd.
Changhong Ruba Electric Company
Account payable 8,938,947.95
(Private) Ltd.
Account payable Hefei Changhong Industrial Co., Ltd. 6,434,535.69
CHANGHONG(HK)TRADINGLIMITE
Account payable 3,052,516.27
D
Sichuan Zhiyijia Network Technology
Account payable 2,979,349.71
Co., Ltd.
Sichuan Changhong Jineng Sunshine
Account payable 52,743.33
Technology Co., Ltd.
Sichuan Changhong Electronics Holding
Account payable 6,687.52
Group Co., Ltd.
Account payable Sichuan Hongwei Technology Co., Ltd. 3,225.71
Contract liability Lejiayi Chain Management Co., Ltd. 828,419.67 1,774,510.16
Contract liability Sichuan Changhong Electric Co., Ltd. 547,736.39 750,203.12
Contract liability Sichuan Aoku Technology Co., Ltd. 358,528.90
Sichuan Service Exp. Appliance Service
Contract liability 303,764.99 12,736.12
Chain Co., Ltd.
Contract liability Sichuan Changhong Device Technology 59,317.08
248
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Item Related party Balance at year-end Balance at year-begin
Co., Ltd.
Hong Yuan Ground Energy Heat Tech.
Contract liability 41,894.81 108,490.57
Co., Ltd.
Guang yuan Hongcheng Industrial Co.,
Contract liability 22,935.78
Ltd.
Sichuan Changhong Minsheng Logistics
Contract liability 3,362.83 9,355.42
Co., Ltd.
Chengdu Guigu Environmental Tech. Co.,
Contract liability 1,520.35
Ltd
CHANGHONG (HK) TRADING
Contract liability 817.96 945.91
LIMITED
Sichuan Tianyou Guigu Technology Co.,
Contract liability 185.84
Ltd.
Sichuan Zhiyijia Network Technology
Contract liability 34.38
Co., Ltd.
Contract liability 081 Electronic Group Co., Ltd. 22.61 25.55
Sichuan Changhong Gerun
Contract liability 5,090.51
Environmental Protection Tech. Co., Ltd.
Sichuan Changhong Electronics Holding
Contract liability 5,080.00
Group Co., Ltd.
Contract liability Hefei Changhong Industrial Co., Ltd. 4,022.06
Contract liability Sichuan Changhong Real Estate Co., Ltd. 2,154.65
Lease liability Sichuan Changhong Electric Co., Ltd. 11,332,933.78
Lease liability Hefei Changhong Industrial Co., Ltd. 24,644,347.94
Chengdu Changhong Electronic
Lease liability 977,917.93
Technology Co., Ltd.
Other account Sichuan Changhong Minsheng Logistics
100,309,779.69 75,964,081.82
payable Co., Ltd.
Other account
Yuanxin Financial Lease Co., Ltd. 79,697,695.46 44,276,743.76
payable
Other account
Sichuan Changhong Electric Co., Ltd. 2,194,205.68 1,700,295.88
payable
Other account
Changhong Huayi Compressor Co., Ltd. 1,598,900.00 1,598,900.00
payable
Other account Sichuan Zhiyijia Network Technology
784,247.43 41,940.00
payable Co., Ltd.
Other account Sichuan Changhong Intelligent
608,075.10 1,722,946.07
payable Manufacturing Technology Co., Ltd.
Other account Sichuan Changhong Jineng Sunshine
500,000.00 500,000.00
payable Technology Co., Ltd.
Other account
Sichuan Changhong Jijia Fine Co., Ltd. 400,500.00 400,500.00
payable
Other account
Sichuan Hongwei Technology Co., Ltd. 220,425.76
payable
Other account Hunan Grand-Pro Intelligent Tech.
250,000.00 250,000.00
payable Company
Other account
Sichuan Qiruik Technology Co., Ltd. 175,244.04
payable
Other account Sichuan Service Exp. Appliance Service
116,814.89
payable Chain Co., Ltd.
249
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Item Related party Balance at year-end Balance at year-begin
Other account
Sichuan Aoku Technology Co., Ltd. 96,455.34
payable
Other account Guangdong Changhong Electronics Co.,
79,304.55
payable Ltd.
Other account Changhong International Holdings (Hong
52,728.63
payable Kong) Co., Ltd.
Other account Sichuan Changhong Package Printing
50,000.00 50,000.00
payable Co., Ltd.
Other account Sichuan Changhong Electronic Products
50,000.00
payable Co., Ltd.
Other account
Sichuan Ailink Technology Co., Ltd. 50,000.00
payable
Other account Sichuan Changxin Refrigeration Parts
46,702.03 46,702.03
payable Co., Ltd.
Other account
Sichuan Changhong Electric Co., Ltd. 43,634.53 163,469.22
payable
Other account Sichuan Changhong Electronics Holding
35,359.74
payable Group Co., Ltd.
Other account CHANGHONG (HK) TRADING
26,435.95 32,607.64
payable LIMITED
Other account Chengdu Guigu Environmental Tech. Co.,
25,132.00
payable Ltd
Other account
Sichuan Jiahong Industrial Co., Ltd. 18.00 23,100.04
payable
Other account Sichuan Changhong Precision Electronics
0.01 0.01
payable Tech. Co., Ltd.
Other account
081 Electronic Group Co., Ltd. 47,460.00
payable
Other account Sichuan Changhong Gerun
10,000.00
payable Environmental Protection Tech. Co., Ltd.
Total 317,006,725.85 367,301,597.36
(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
250
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
1. Important non-adjustment items: Nil
2. Profit distribution:
For year of 2021, the individual statement of the parent company show net profit of 67,464,464.66
yuan, according to the auditing from Shine Wing Certified Public Accountants (LLP). In accordance
with relevant regulations, the retained profit at beginning of Current Year amounted as 943,879,339.46
yuan, deducted the 2020 profit distributed 51,776,420.60 yuan and after extract for statutory surplus
reserve 6,746,446.47 yuan,the retained profit in individual statement of the parent company
cumulative counted as 952,820,937.05 yuan at end of 2021. In addition, for year of 2021, the net profit
attributable to owners of parent company amounted as 51,898,388.84 yuan. According to relevant
regulations, the consolidated statement covers and retained profit of 740,754,202.23 yuan at the
beginning of the year, after deducted the 2020 profit distribution of 51,776,420.60 yuan and extract for
statutory surplus reserves of 6,744,493.90 yuan, the cumulative retained profit of the consolidated
statement at end of 2021 is 734,129,724.00 yuan.
According to relevant regulations, the company's profit distribution shall be based on the profit
available for distribution of the parent company, and shall comply with the principle of the lower of
the profit available for distribution in the consolidated statement and the parent company statement.
Therefore, the profit available for distribution in 2021 is the cumulative undistributed profit of
734,129,724.00 yuan in the consolidated statement at the end of 2021.
According to relevant laws and regulations and the "Articles of Association", and comprehensively
considering the interests of shareholders and the company's long-term development needs, it is
proposed to:
The profit distribution plan for year of 2021 was: take the total shares (on the registration date when
implement the equity distribution plan for year of 2021) as the base, distributed 0.5 yuan (tax included)
bonus in cash for every 10-share hold by all shareholders, no share bonus issued and no capitalizing of
common reserves carried out.On February 18, 2022, the implementation of shares buy-back of
domestically listed foreign shares (B-Share) was completed and the cancellation of the buy-back
shares are finished on March 2, 2022. After cancellation, total share capital of the Company amounted
to 1,029,923,715 shares, and the matters relating to the registered capital reduction and Article of
Association amendment have yet to be submitted to the shareholders general meeting for
consideration. Based on total share capital of 1,029,923,715 shares after cancellation, a cash dividend
of 51,496,185.75 yuan is expected to be paid.
After this distribution, it is estimated that the remaining accumulated undistributed profit of the parent
company will be 901,324,751.30 yuan, and the remaining undistributed profit will be carried forward
251
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
for distribution in subsequent years.
The aforesaid proposals have been deliberated and approved at the 16th session of 10th BOD, and is
subject to the approval of shareholders general meeting.
3.Majo r sale s retu rn : 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 rev io us period s and in flu enc e: Nil
2. Debt restru ctu ring: Nil
3. Asse ts rep lace ment: Nil
4. Pension p lan : Nil
5. Discon tinu ing ope ra tion: Nil
6.Branch info rma tion
In 10 thousand yuan
Refrigerator,
freezer Air-con Smallhome
Item Other Salesinbranch Total
Washing ditioner appliances
machine
Operation income 933,873.12 720,306.07 155,320.15 36,761.69 42,965.28 1,803,295.75
Including: foreign trade 926,726.02 720,237.39 141,662.80 14,669.54 1,803,295.75
income
Income from transactions 7,147.10 68.68 13,657.35 22,092.15 42,965.28
between divisions
Operation expenses 937,294.17 734,253.06 152,118.18 33,435.82 42,947.37 1,814,153.86
Operation profit -3,421.05 -13,946.99 3,201.97 3,325.87 17.91 -10,858.11
Total assets 1,130,762.34 452,506.40 72,248.62 19,131.38 170,350.60 1,504,298.14
Totalliability 644,633.14 342,258.54 50,550.03 7,622.49 26,463.41 1,018,600.79
Supplementary information
Depreciation and amortization expenses 21,281.03 14,552.21 460.51 508.28 -11.33 36,813.36
Capital expenditure 8,886.16 10,392.14 1.32 2,253.77 21,533.39
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
252
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Amount at year-end
Category Book balance Bad debt provision
Ratio(% Ratio(% Book value
Amount Amount
) )
Account receivable that
withdrawal bad debt provision 1,416,366,794.95 88.42 2,554,877.42 0.18 1,413,811,917.53
by single item
Including: Related party
1,390,662,728.52 86.82 2,203,703.69 0.16 1,388,459,024.83
payments
Account receivable with letter
25,352,892.70 1.58 25,352,892.70
of credit
Account receivable with single
minor amount but withdrawal 351,173.73 0.02 351,173.73 100.00
single item bad debt provision
Account receivable withdrawal
185,510,434.61 11.58 16,670,455.89 8.99
bad debt provision by portfolio 168,839,978.72
Including: account receivable
6,246,264.00 0.39 3,123,132.00 50.00
of engineering customers 3,123,132.00
Receivables other than
179,264,170.61 11.19 13,547,323.89 7.56 165,716,846.72
engineering customers
Total 1,601,877,229.56 100.00 19,225,333.31 1.20 1,582,651,896.25
(Continued)
Amount at year-begin
Category Book balance Bad debt provision
Book value
Amount Ratio(%) Amount Ratio(%)
Account receivable that withdrawal bad
858,063,066.45 83.09 3,370,366.42 0.39 854,692,700.03
debt provision by single item
Including: Related party payments 815,741,150.65 78.99 2,956,149.11 0.36 812,785,001.54
Account receivable with letter of credit 38,179,742.75 3.70 38,179,742.75
Account receivable with single minor
amount but withdrawal single item bad 4,142,173.05 0.40 414,217.31 10.00 3,727,955.74
debt provision
Account receivable withdrawal bad debt
174,658,647.31 16.91 10,052,329.94 5.76 164,606,317.37
provision by portfolio
Including: account receivable of
6,255,423.49 0.61 1,250,265.60 19.99 5,005,157.89
engineering customers
Receivables other than engineering
168,403,223.82 16.31 8,802,064.34 5.23 159,601,159.48
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, one client involved.
2) Account receivable withdrawal bad debt provision by portfolio
253
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
A. Account receivable of engineering customers
Balance at year-end
Account age
Book balance Bad debt Accrual ratio (%)
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
i l d d)
over one year-within two years (2 years 20.00
i l d d)
Over 2 years - within 3 years (3 years 6,246,264.00 3,123,132.00 50.00
incl ded)
Over 3 years 100.00
Total 6,246,264.00 3,123,132.00
B. Receivables other than engineering customers
Balance at year-end
Account age
Book balance Bad debt Accrual ratio (%)
146,099,823.60 1,460,998.24 1.00
Within 3 months(3 months included)
10,604,804.35 1,060,480.44 10.00
Over 3 months and within 6 months (6 months
9,051,609.96 1,810,321.99 20.00
Over 6 months and within one year (One year
8,453,845.93 4,226,922.97 50.00
over one year-within two years (2 years
327,432.61 261,946.09 80.00
Over 2 years - within 3 years (3 years
4,726,654.16 4,726,654.16 100.00
Over 3 years
179,264,170.61 13,547,323.89
Total
(2) By account age
Account age Balance at year-end
Within 3 months(3 months included) 667,235,077.95
Over 3 months and within 6 months (6 months included) 867,911,914.43
Over 6 months and within one year (One year included) 35,781,521.18
over one year-within two years (2 years included) 13,453,956.99
Over 2 years - within 3 years (3 years included) 6,594,527.78
Over 3 years 10,900,231.23
Total 1,601,877,229.56
(3) Bad debt reserves of the account receivable
Amount change in the year
Balance at Balance at
Category Accrual Collected or
year-begin Resale or write-off year-end
switch back
Bad debt 13,422,696.36 5,802,636.95 19,225,333.31
254
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Amount change in the year
Balance at Balance at
Category Accrual Collected or
year-begin Resale or write-off year-end
switch back
provision
Total 13,422,696.36 5,802,636.95 19,225,333.31
(4)Top 5 balance of account receivable aggregated by the debtor at end of the year amounted to
1,385,311,628.22 yuan, accounted for 86.48% of the receivables at balance of current year-end, the
bad debt provision amounted as 600,051.99 yuan.
(5) Account receivable derecognized due to transfer of financial assets amounted to 311,355,057.85
yuan.
(6)There are no receivables and the amount of assets and liabilities formed by continued involvement
1.Other account receivable
Item Balance at year-end Balance at year-begin
Other account receivable 40,708,614.68 49,093,918.57
Total 40,708,614.68 49,093,918.57
(1) By nature
Nature Ending book balance Opening book balance
Related party in consolidation statement 4,859,662.12 3,521,237.00
Related party not in consolidation statement 200,000.00 200,000.00
Loans of employee’s pretty cash 4,383,234.18 5,697,517.11
Cash deposit 2,788,111.92 6,507,745.28
Export rebates 26,634,190.54 32,281,664.19
Other 1,893,415.92 935,978.02
Total 40,758,614.68 49,144,141.60
(2) Provision for bad debt of other receivable
First stage Second stage Third stage
Expected credit Expected credit loss for
Bad debt reserves Expected credit Total
loss for the whole the whole duration
loss in next 12
duration (no credit (credit impairment has
months
impairment) occurred)
Balance as at 1st Jan. 2021 223.03 50,000.00 50,223.03
Book balance of Other account
receivable in Current Year as at — — — —
1 Jan. 2021
--Transfer to the second stage
--Transfer to the third stage
255
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
First stage Second stage Third stage
Expected credit Expected credit loss for
Bad debt reserves Expected credit Total
loss for the whole the whole duration
loss in next 12
duration (no credit (credit impairment has
months
impairment) occurred)
--Reversal to the second stage
--Reversal to the first stage
Provision in Current Year -223.03 -223.03
Reversal in Current Year
Conversion in Current Year
Write off in Current Year
Other change
Balance as at 31st December
50,000.00 50,000.00
2021
(3) By account age
Account age Balance at year-end
Within 3 months(3 months included) 34,703,730.05
Over 3 months and within 6 months (6 months included) 1,390,793.47
Over 6 months and within one year (One year included) 1,144,671.71
over one year-within two years (2 years included) 1,556,311.89
Over 2 years - within 3 years (3 years included) 899,400.00
Over 3 years 1,063,707.56
Total 40,758,614.68
(4) Top 5 balance of other account receivable aggregated by the debtor at end of the year
Proportion of
the total
Balance at year-end Year-end balance of
Name of the unit Nature Account age
year-end balance of bad debt reserve
other
receivable(%)
Unit 1 Export rebates 26,634,190.54 Within 3 months 65.35
Within 3
months,Within 3-6
Unit 2 Related party amount 2,195,879.38 5.39
months, Within 6
months-1 year
Unit 3 Related party amount 2,077,335.14 Within 3 months 5.10
Unit 4 Employee petty cash 988,754.39 Within 3 months 2.43
256
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Proportion of
the total
Balance at year-end Year-end balance of
Name of the unit Nature Account age
year-end balance of bad debt reserve
other
receivable(%)
Within 3
months,Within 3-6
Unit 5 Employee petty cash 541,615.16 months, Within 6 1.33
months-1 year,
Within 1-2 years
Total 32,437,774.61 79.59
(5) There are no receivables involving government subsidies
(6) There are no other receivables derecognized due to the transfer of financial assets.
(7) There are no other receivables and the amount of assets and liabilities formed by continued
involvement
257
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
2.Long-term equity investments
(1) Classification of long-term equity investments
Balance at year-end Balance at year-begin
Item
Book balance Impairment loss Book value Book balance Impairment loss Book value
Investment in subsidiaries:
Zhongke Meiling Cryogenic Technology Co., Ltd. 42,652,000.00 42,652,000.00 42,652,000.00 42,652,000.00
Mianyang Meiling Refrigeration Co., Ltd. 95,000,000.00 95,000,000.00 95,000,000.00 95,000,000.00
Hefei Meiling Electrical Marketing Co., Ltd 54,900,000.00 54,900,000.00 54,900,000.00 54,900,000.00
Zhongshan Changhong Electric Co., Ltd. 304,856,419.37 304,856,419.37 304,856,419.37 304,856,419.37
Sichuan Changhong Air-conditioner Co., Ltd. 955,600,437.79 955,600,437.79 955,600,437.79 955,600,437.79
Hefei Meiling Group Holdings Limited 113,630,000.00 113,630,000.00 113,630,000.00 113,630,000.00
Jiangxi Meiling Electric Appliance Co., Ltd. 79,000,000.00 79,000,000.00 79,000,000.00 79,000,000.00
Changhong Meiling Ridian Technology Co., Ltd. 91,082,111.12 91,082,111.12 91,082,111.12 91,082,111.12
Meiling CANDY Washing Machine Co., Ltd. 60,000,000.00 27,675,208.01 32,324,791.99 60,000,000.00 27,675,208.01 32,324,791.99
Hefei Meiling Wulian Technology Co., Ltd 6,000,000.00 6,000,000.00 6,000,000.00 6,000,000.00
CH-Meiling.International (Philippines) Inc. 6,889,100.00 6,889,100.00 6,889,100.00 6,889,100.00
Hefei Changhong Meiling Life Appliances Co., Ltd. 35,000,000.00 35,000,000.00
Investment in associates:
Hefei Xingmei Assets Management Co., Ltd. 19,835,366.84 19,835,366.84 6,826,274.99 6,826,274.99
Sichuan Zhiyijia Network Technology Co., Ltd. 45,787,014.55 45,787,014.55 45,354,700.69 45,354,700.69
Total 1,910,232,449.67 27,675,208.01 1,882,557,241.66 1,861,791,043.96 27,675,208.01 1,834,115,835.95
258
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
(2) Investment in subsidiaries
Provision for
Balance at Increased in Decreased in impairment Ending balance of
Invested enterprise Balance at year-end
year-begin Current Year Current Year losses in the impairment
Year
Zhongke Meiling Cryogenic Technology Co.,
42,652,000.00 42,652,000.00
Ltd.
Mianyang Meiling Refrigeration Co., Ltd. 95,000,000.00 95,000,000.00
Hefei Meiling Electrical Marketing Co., Ltd 54,900,000.00 54,900,000.00
Zhongshan Changhong Electric Co., Ltd. 304,856,419.37 304,856,419.37
Sichuan Changhong Air-conditioner Co., Ltd. 955,600,437.79 955,600,437.79
Hefei Meiling Group Holdings Limited 113,630,000.00 113,630,000.00
Jiangxi Meiling Electric Appliance Co., Ltd. 79,000,000.00 79,000,000.00
Changhong Meiling Ridian Technology Co.,
91,082,111.12 91,082,111.12
Ltd.
Hefei Changhong Meiling Life Appliances Co.,
35,000,000.00 35,000,000.00
Ltd.
Meiling CANDY Washing Machine Co., Ltd. 60,000,000.00 60,000,000.00 27,675,208.01
Hefei Meiling Wulian Technology Co., Ltd 6,000,000.00 6,000,000.00
CH-Meiling.International (Philippines) Inc. 6,889,100.00 6,889,100.00
Total 1,809,610,068.28 35,000,000.00 1,844,610,068.28 27,675,208.01
(3) Investment in associates
Ending
Changesin CurrentYear Balanceatyear-end balance of
Balanceat impairment
Invested enterprise
year-begin
Additional Negative Investmentincome Adjustm Otherequity Cashdividendor Provisio Ot
Investment Investment recognized under entfor change profitannounced n for he
259
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
equity other to issued impair r
compreh ment
ensive loss
income
Hefei Xingmei Assets Management
6,826,274.99 13,009,091.85 19,835,366.84
Co., Ltd.
Sichuan Zhiyijia Network
45,354,700.69 1,587,930.30 -130,171.30 1,025,445.14 45,787,014.55
Technology Co., Ltd.
Total 52,180,975.68 14,597,022.15 -130,171.30 1,025,445.14 65,622,381.39
260
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
3.Operation income, operation cost
(1)Operation income and operation cost
Current Year Last Year
Item
Income Cost Income Cost
Main business 6,269,665,154.77 5,961,603,587.31 5,993,841,897.34 5,587,709,737.76
Other business 1,558,625,413.18 1,504,868,816.56 2,039,108,063.73 1,988,342,535.09
Total 7,828,290,567.95 7,466,472,403.87 8,032,949,961.07 7,576,052,272.85
(2) Main business - Classified according to product
Current Year Last Year
Product
Operation income Operation cost Operation income Operation cost
Refrigerator, freezer 5,616,008,389.43 5,336,569,969.26 5,484,841,178.48 5,093,379,851.08
Air conditioner 9,710,128.34 9,624,142.71 1,927,662.84 1,922,589.14
Washing machine 501,650,494.16 481,590,996.66 328,707,340.67 331,857,408.29
Small household appliances and
141,304,122.43 133,042,607.04 178,264,898.56 160,500,034.70
kitchen and bathroom
Other 992,020.41 775,871.64 100,816.79 49,854.55
Total 6,269,665,154.77 5,961,603,587.31 5,993,841,897.34 5,587,709,737.76
(3) Main business - Classified according to region
Current Year Last Year
Region
Operation income Operation cost Operation income Operation cost
Domestic 3,755,627,585.57 3,652,876,947.70 3,092,637,436.35 3,165,520,459.49
Overseas 2,514,037,569.20 2,308,726,639.61 2,901,204,460.99 2,422,189,278.27
Total 6,269,665,154.77 5,961,603,587.31 5,993,841,897.34 5,587,709,737.76
Top five clients in sales revenue amounted as 4,209,281,817.95 yuan, a 53.77 % in total operation income.
4. Investment income
Item Current Year Last Year
Long-term equity investment income by equity method 14,597,022.15 2,444,675.51
Investment income obtained from disposal of trading financial assets 54,779,974.55 47,311,415.04
Income from financial products 13,016,001.33 7,845,151.69
Long-term equity investment income by cost method 2,754,000.00 69,912,000.00
Investment income of other non-current financial assets during holding period 7,596,184.95 27,218,378.81
Total 92,743,182.98 154,731,621.05
XVIII. Approval of financial statement
261
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
The financial statement has already been approved from the board of directors of the Company for
reporting dated 29 March 2022.
262
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Supplementary info rmation for financial sta tement
2. Non-recurring gains and losses for this year
Item Current Year Note
Gains and losses from disposal of non-current assets -133,214.72
Governmental subsidy reckoned into current gains/losses (not including the
subsidy enjoyed in quota or ration according to national standards, which are 103,024,250.74
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 financial liability and financial 105,811,461.63
assets available-for-sale, excluded effective hedging business relevant with
normal operations of the Company
Reversal of the account receivable depreciation reserves subject to separate
3,245,314.13
impairment test
4,867,985.38
Other non-operating income and expenses other than the above
216,815,797.16
Subtotal
Less: impact on income tax 21,813,023.99
Impact on minority shareholders’ equity (post-tax) 2,886,751.07
Total 192,116,022.10 —
3. Return on equity and earnings per share
Weighted average return Earnings per share/EPS (RMB/Share)
Profit during the report period
on equity Basic EPS Diluted EPS
Net profit attributable to ordinary shareholders
1.07% 0.0497 0.0497
of the parent company
Net profit attributable to ordinary shareholders
of the parent company after deduction of the -2.89% -0.1342 -0.1342
non-recurring gains/losses
Chairman: Wu Dinggang
Changhong Meiling Co., Ltd.
March 31, 2022
263
