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虹美菱B:2023年第一季度报告2023-04-20  

                                                                               CHANGHONG MEILING CO., LTD.THE FIRST QUARTERLY REPORT OF 2023




Stock Code: 000521, 200521          Stock Abbreviation: Changhong Meiling, Hongmeiling B
Announcement No.: 2023-025




                                     Changhong Meiling Co., Ltd.
                                The First Quarterly Report of 2023


The Company and whole members of the Board guarantee that the information disclosed is true, accurate and

complete and there are no fictitious records, misleading statements or material omissions carried in the Report.



Important Note:

1. Board of Directors and the Supervisory Committee of Changhong Meiling Co., Ltd. (hereinafter referred to as
the Company) and its directors, supervisors and senior executives should guarantee the reality, accuracy and
completion of the quarterly report, there are no any fictitious statements, misleading statements or important
omissions carried in this report, and shall take legal responsibilities, individual and/or joint.
2. Person in charge of the Company, head of accounting and person in charger of accounting organ (accounting
officer) hereby confirm that the financial information of this Quarterly Report is authentic, accurate and complete.
3. The first quarterly report audited or not
□Yes √No

I. Main financial data

(i) Main accounting data and financial indexes

Whether it has retroactive adjustment or re-statement on previous accounting data or not
√Yes □No
Reasons for retroactive adjustment or restatement of the previous accounting data
√Changes in accounting policies □ Correction of accounting errors □ Business consolidation under the same control
□ Other reasons
                                                                                                        Changes of this period
                                                                   Same period of last year              over same period of
                                  Current Period                                                               last year
                                                          Before adjustment        After adjustment       After adjustment

  Operating income (RMB)            5,025,237,527.25         4,012,925,239.44        4,012,925,239.44                 25.23%
  Net profit attributable to
  shareholders of the listed         122,540,351.10             5,147,648.23             5,147,648.23              2,280.51%
  company (RMB)



                                                                                                                             1
                                                             CHANGHONG MEILING CO., LTD.THE FIRST QUARTERLY REPORT OF 2023



  Net profit attributable to
  shareholders of the listed
  company after deducting                 103,510,051.94                -22,549,982.34              -22,549,982.34                559.02%
  non-recurring gains and
  losses (RMB)
  Net cash flow arising from
                                         -372,008,676.48          -1,064,503,447.07           -1,064,503,447.07                     65.05%
  operating activities (RMB)
  Basic earnings per share
                                                   0.1190                      0.0050                      0.0050               2,280.00%
  (RMB/Share)
  Diluted earnings per share
                                                   0.1190                      0.0050                      0.0050               2,280.00%
  (RMB/Share)
                                                                                                                           Increase by 2.24
  Weighted average ROE                              2.34%                       0.10%                       0.10%
                                                                                                                          percentage points
                                                                                                                        Changes of this
                                                                               End of last period                    period-end over same
                                        End of this period                                                           period-end of last year
                                                                Before adjustment            After adjustment          After adjustment

  Total assets (RMB)                   17,061,136,133.84          16,200,361,212.80           16,205,296,370.67                      5.28%
  Owners’ equity attributable
  to shareholders of listed             5,296,286,171.68           5,168,286,872.09            5,168,471,419.72                      2.47%
  company (RMB)

Reasons of accounting policy change and correction of accounting errors

     The Company made the accounting policy change in accordance with the "Accounting Standard for Business
Enterprises No. 16Interpretation " issued by the Ministry of Finance on November 30, 2022: "The deferred income
tax related to assets and liabilities arising from a single transaction is not subject to the accounting treatment of the
initial recognition exemption", and chose to implement from January 1, 2023.

(ii)Items of non-recurring gains and losses
√ Applicable □ Not applicable
                                                                                                                                  In RMB
                                Item                                          Current amount                           Note
Gains/losses from the disposal of non-current asset (including the
write-off that accrued for impairment of assets)
Governmental subsidy calculated into current gains and
losses(while closely related with the normal business of the
                                                                                                         Mainly due to government
Company, the government subsidy that accord with the provision                           10,348,869.48
                                                                                                         subsidies.
of national policies and are continuously enjoyed in line with a
certain standard quota or quantity are excluded)
Gain and loss from change of the fair value arising from
transactional monetary assets, transactional financial liabilities as
held as well as the investment income arising from disposal of the                                     Mainly due to investment income
transactional monetary assets, transactional financial liabilities                        6,095,174.23 obtained from the disposal of
and financial assets available for sale excluding the effective                                        trading financial assets
hedging transaction in connection with the Company’s normal
business
Other non-operating income and expenses other than the above                              5,012,362.28 Mainly due to income from fines.

Less: impact on income tax                                                                 421,943.41

Impact on minority shareholders’ equity (post-tax)                                       2,004,163.42

Total                                                                                    19,030,299.16                  --

Details of other profit and loss items that meet the non-recurring profit and loss definition


                                                                                                                                          2
                                                        CHANGHONG MEILING CO., LTD.THE FIRST QUARTERLY REPORT OF 2023




 □ 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

 (iii)Particulars about material changes in items of main accounting statement and financial index and
 explanations of reasons

 √ Applicable □Not applicable

 1.Changes and reasons of items in balance sheet

                                                                                                                        In RMB
            Item              Ending balance       Opening balance      Changes ratio             Reasons of changes
                                                                                     Mainly due to the purchase of wealth
Trading financial assets         250,802,870.28         57,660,588.67        334.96% management products by the Company in the
                                                                                     current period.
                                                                                     Mainly due to the increase in the Company's
Account receivable              1,885,992,283.98     1,306,871,945.85         44.31%
                                                                                     operating income in the current period
                                                                                     Mainly due to the increase in the Company's
Inventory                       2,448,841,210.43     1,710,306,933.71         43.18%
                                                                                     operating income in the current period
                                                                                     Mainly due to the reclassification of the
Non-current asset due
                                 270,422,555.56        170,167,638.89         58.92% current corporate debt investment to maturity
within one year
                                                                                     within one year
                                                                                     Mainly due to the increase in the Company's
Other current assets             166,239,145.08        120,589,431.85         37.86%
                                                                                     time deposits in the current period.
                                                                                     Mainly due to the increase in the Company's
Creditor's rights
                                  202,020,611.11       121,543,750.00         66.21% large certificates of deposit in the current
investment
                                                                                     period.
                                                                                     Mainly due to the increase in the Company's
Other non-current assets            2,411,486.64           893,238.57        169.97%
                                                                                     prepaid project payment in the current period
                                                                                     Mainly due to the increase in the Company's
Account payable                 4,027,615,277.29     2,917,997,138.00         38.03% raw material procurement in the current
                                                                                     period.
                                                                                     Mainly due to the increase in relevant taxes
                                                                                     and fees caused by the increase in the
Other current liabilities          29,608,735.19        22,605,269.51         30.98%
                                                                                     Company's advance receipts in the current
                                                                                     period.
                                                                                     Mainly due to the Company's provision of
Special reserve                     6,929,368.76         2,467,205.78        180.86% safety production expenses in the current
                                                                                     period.


 2.Changes and reasons of items in profit statement
                                                                                                                        In RMB
            Item            Current period     Amount at the
                                               same period of   Changes ratio                  Reasons of changes
                                                  last year



                                                                                                                                3
                                                           CHANGHONG MEILING CO., LTD.THE FIRST QUARTERLY REPORT OF 2023




                                                                                   Mainly due to the increase in related taxes and fees
Tax and extras                    39,314,902.23      29,031,104.40          35.42% due to the increase in the Company's sales in the
                                                                                   current period

                                                                                   Mainly due to the YOY decrease in government
Other income                      11,993,948.27      26,202,120.61         -54.23% subsidies received by the Company in the current
                                                                                   period.

Investment earnings               11,296,852.87       7,547,051.46          49.69% Mainly due to the increase in the profit of the
                                                                                   Company's associates in the current period.

                                                                                  Mainly caused by the change in the fair value of
Gains on changes in fair           1,581,886.04      -1,533,990.67        203.12% the Company's irrevocable orders and forward
value
                                                                                  foreign exchange contracts in the current period.

Gains on disposal of                          -       3,689,706.71        -100.00% Mainly due to there’s no proceeds from asset
assets                                                                             disposal by the Company in the current period.

Non-operating income               5,645,604.54       1,073,158.74        426.07% Mainly due to the increase in revenue from fines
                                                                                  received by the Company in the current period.

                                                                                  Mainly due to the increase in income tax expense
Income tax expenses                7,491,433.56      -1,669,169.27        548.81% due to the increase in the Company's taxable
                                                                                  income in the current period

                                                                                   Mainly due to the YOY decrease in the earnings of
Gains/losses of                    5,547,007.66       8,232,999.11         -32.62% some non-wholly-owned subsidiaries of the
minority’s interest
                                                                                   Company in the current period.

3.Changes and reasons of items in cash flow statement
                                                                                                                          In RMB
             Item                 Current period     Amount at the
                                                     same period of     Changes ratio                 Reasons of changes
                                                        last year
Other cash received                                                                   Mainly due to the YOY decrease in government
concerning operation                 23,940,223.82      39,337,433.81         -39.14% subsidies received by the Company in the
activities                                                                            current period.
                                                                                      Mainly due to the YOY decrease in various
Taxes paid                           75,109,108.69     132,796,426.52         -43.44% taxes paid by the Company in the current
                                                                                      period.
                                                                                      Mainly due to the withdrawal of corporate
Cash received from recovery
                                    150,000,000.00       1,539,824.00       9,641.37% wealth management products at maturity in the
of investment
                                                                                      current period.
Net cash received from
                                                                                       Mainly due to the YOY decrease in cash
disposal of fixed assets,
                                        114,445.00       8,304,653.60          -98.62% received by the Company for the disposal of
intangible assets and other
                                                                                       assets in the current period.
long-term assets
                                                                                      Mainly due to the purchase of wealth
Cash paid for investments           560,000,000.00     220,000,000.00         154.55% management products and large certificates of
                                                                                      deposit by the Company in the current period.
Other cash received                                                                   Mainly due to the constrained recovery of the
concerning financing                250,646,926.33       4,466,696.88       5,511.46% Company's guarantee deposits in the current
activities                                                                            period.
                                                                                         Mainly due to the y-o-y Increase in repayment
Cash paid for settling debts        435,000,000.00     175,000,000.00         148.57%
                                                                                         of loans in the Period
Cash paid for dividend and
                                                                                         Mainly due to the YOY decrease in interest
profit distributing or interest       4,998,050.47      10,261,148.45          -51.29%
                                                                                         paid by the Company in the current period.
paying
                                                                                       Mainly due to the constrained recovery of the
Other cash paid concerning
                                     45,458,808.90       4,144,046.56          996.97% Company's guarantee deposits in the current
financing activities
                                                                                       period.
Effect of exchange rate                                                                Mainly due to the change of exchange rate in
                                    -11,739,344.83         398,221.49       -3,047.94%
changes on cash                                                                        the Period



                                                                                                                                       4
                                                              CHANGHONG MEILING CO., LTD.THE FIRST QUARTERLY REPORT OF 2023




   II. Shareholders

   (i)Total number of common shareholders and preference shareholders with voting rights recovered and top
   ten shareholders

                                                                                                                                   In Shares
                                                                      Total preference shareholders
Total number of common
                                                                      with voting rights recovered at
shareholders at the end of report                              48,771                                                                          0
                                                                      end of reporting period (if
period
                                                                      applicable)
                                                              Top ten shareholders
                                                                                                                          Information of shares
                                                                                                                            pledged, tagged or
                                                                         Proportion                         Amount of
                                                                                          Amount of                                frozen
              Shareholder’s name                  Nature of shareholder of shares                            lock-up
                                                                                          shares held                        State of
                                                                            held                            shares held                  Amount
                                                                                                                              share
                                                   State-owned legal           24.12%         248,457,724
Sichuan Changhong Electric Co., Ltd.                                                                                  0        -          --
                                                   person
Hefei Industry Investment Holding (Group)          State-owned legal            4.64%          47,823,401             0        -          -
Co., Ltd.                                          person
CHANGHONG (HK) TRADING LIMITED                     Foreign legal person         2.63%          27,077,797             0        -          -
Taiping Asset-ICBC-Taiping           Star   19 Domestic non-state-            2.22%          22,851,100
                                                                                                                      0        -          -
investment products                              owned legal person
Huaan Funds-Bank of Shanghai-Huaan                                            1.99%          20,520,700
                                     Domestic non-state-
Funds-New Era No.2 Collective Asset owned legal person                                                               0        -          -
Management plan
CAO SHENGCHUN                                      Foreign natural person       1.43%          14,766,086             0        -          -
Xu Aiyun                                           Domestic       natural       1.36%          14,038,200
                                                                                                                      0        -          -
                                                   person
Huaan Funds-Industrial Bank-Huaan Funds Domestic non-state-                   1.15%          11,822,201
                                          owned legal person                                                          0        -          -
-New Era No.1 Asset Management Plan
Caitong Fund- Ningbo Bank-Haitong Xingtai Domestic non-state-                   1.04%          10,733,452
(Anhui) Emerging Industry Investment Fund owned legal person                                                          0        -          -
(Limited Partnership)
Wang Xinzhong                                      Domestic       natural       0.94%           9,679,240
                                                                                                                      0        -          -
                                                   person
                                              Top ten shareholders with unrestricted shares held
                                                                                                                   Type of shares
              Shareholder’s name                        Amount of unrestricted shares held
                                                                                                             Type               Amount
                                                                                                     RMB ordinary
Sichuan Changhong Electric Co., Ltd.                                                  248,457,724                                 248,457,724
                                                                                                     shares
Hefei Industry Investment Holding (Group)                                                            RMB ordinary
                                                                                        47,823,401                                 47,823,401
Co., Ltd.                                                                                            shares
                                                                                                     Domestically listed
CHANGHONG (HK) TRADING LIMITED                                                          27,077,797                                 27,077,797
                                                                                                     foreign shares
Taiping Asset-ICBC-Taiping           Star   19                                                     RMB ordinary
                                                                                        22,851,100                                 22,851,100
investment products                                                                                  shares
Huaan Funds-Bank of Shanghai-Huaan
                                                                                                     RMB ordinary
Funds-New Era No.2 Collective Asset                                                    20,520,700                                   20,520,700
                                                                                                     shares
Management plan
CAOSHENGCHUN                                                                                       Domestically listed
                                                                                        14,766,086                                   14,766,086
                                                                                                   foreign shares
Xu Aiyun                                                                                           RMB ordinary
                                                                                        14,038,200                                   14,038,200
                                                                                                   shares
Huaan Funds-Industrial Bank-Huaan Funds                                                            RMB ordinary
                                                                                        11,822,201                                   11,822,201
-New Era No.1 Asset Management Plan                                                                 shares


                                                                                                                                          5
                                                             CHANGHONG MEILING CO., LTD.THE FIRST QUARTERLY REPORT OF 2023




Caitong Fund- Ningbo Bank-Haitong Xingtai
                                                                                                  RMB ordinary
(Anhui) Emerging Industry Investment Fund                                            10,733,452                                 10,733,452
                                                                                                  shares
(Limited Partnership)
Wang Xinzhong                                                                                     RMB ordinary
                                                                                      9,679,240                                   9,679,240
                                                                                                  shares
                             Among the above shareholders, CHANGHONG (HK) TRADING LIMITED (hereinafter referred to as Hong
                             Kong Changhong) is the wholly-owned subsidiary of Sichuan Changhong Electric Co., Ltd., the foregoing
                             shareholders constitute persons of uniform action. There existed no associated relationship or belong to the
                             concerted actors as specified in the Measures for the Administration of Information Disclosure of Shareholder
Explanation on associated    Equity Changes of Listed Companies among Sichuan Changhong Electric Co., Ltd, Hong Kong Changhong
relationship among the       and other top 8 shareholders, “Caitong Fund- Ningbo Bank-Haitong Xingtai (Anhui) Emerging Industry
aforesaid shareholders       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”.
Explanation on top ten
                             As of March 31, 2023, among the top 10 common shareholders, Wang Xinzhong holds 9,679,240 shares of the
shareholders involving
                             Company through customer credit trading secured account of Sinolink Securities Co., Ltd., resulting in a total
margin business (if
                             of 9,679,240 shares of the Company.
applicable)

   (ii) Total shareholders with preferred stock held and shares held by top ten shareholders with preferred stock
   held

   □ Applicable √ Not applicable

   III. Other important matters

   √Applicable □Not applicable
                                                                                                       Information index for temporary
                                 Overview                                     Date for disclosure
                                                                                                              report disclosure
 After the resolution adopted by the board of directors and the board of
 supervisors of the Company, it’s agreed that the Company will with its                            Juchao
 own funds of 45 million yuan participate in the establishment of "Sichuan                          Website:http://www.cninfo.com.cn
 Hongyun Information Technology Venture Capital Fund Partnership           January 18,2023
                                                                                                    (No.: 2023-002,2023-003 and
 (Limited Partnership)" (tentative name, subject to the approval and
 registration of the market regulatory department), and serve as a limited                          2023-004)
 partner of the fund.
 After the resolution adopted by the board of directors and the board of
 supervisors of the Company, it’s agreed that the Company and its
 subsidiaries will make a single provision for bad debts for receivables of
 the customer Changhong RUBA Electric Appliance Co., Ltd(an associate
 of Zhongshan Changhong Electric Appliance Co., Ltd-a subsidiary to the                             Juchao
 Company) in the fourth quarter of 2022, and agreed that the Company, its                           Website:http://www.cninfo.com.cn
 subsidiaries Hefei Meiling Group Holdings Co., Ltd. and Sichuan            January 18,2023
                                                                                                    (No.:2023-002,2023-003 and 2023-
 Changhong Air Conditioning Co., Ltd and Sichuan Zhiyijia Network
                                                                                                    005)
 Technology Co., Ltd-an associate of the Company, made a single
 provision for bad debts for the receivables of Gome System (Gome
 System is the collective name of Gome's subsidiaries, branches, offices
 and agencies at all levels), with the total amount for the aforementioned
 single provisions for bad debts of 101,962,546.44 yuan.
 After the resolution adopted by the board of directors of the Company, it’s                       Juchao Website:
 agreed to renew the appointment of ShineWing CPA (LLP) as the auditor                              http://www.cninfo.com.cn
                                                                              March 31,2023
 of the Company's 2023 annual financial report and internal control for one
                                                                                                    (No.:2023-011 and 2023-015)
 year.
 After the resolution adopted by the board of directors of the Company, it’s
 agreed that the Company and its subsidiaries will carry out forward
 foreign exchange fund trading business from July 1, 2023 to June 30,                               Juchao
 2024, with a transaction balance of not more than USD 1.046 billion          March 31,2023         Website:http://www.cninfo.com.cn
 (mainly including: USD, AUD, EURO, and all other foreign currencies                                (No.:2023-011 and 2023-016)
 converted into USD), and the delivery period of a single business shall not
 exceed 1 year.
 After the resolution adopted by the board of directors and the board of    March 31,2023           Juchao

                                                                                                                                      6
                                                               CHANGHONG MEILING CO., LTD.THE FIRST QUARTERLY REPORT OF 2023



supervisors of the Company, in accordance with the principles of legal                              Website:http://www.cninfo.com.cn
compliance, standardized operation, one-by-one examination and                                      (No.:2023-011 ,2023-012 and
approval, and account write-off records, it’s agreed to write off a total of                       2023-017)
1,307,424.41 yuan of bad debts that were truly unrecoverable by
Zhongshan Changhong-a subsidiary of the Company.
After the resolution adopted by the board of directors of the Company, it’s
approved that the Company and its subsidiaries will apply for a special
credit line of up to 400 million yuan for the bill pool from Hefei Branch                           Juchao
of Industrial Bank Co., Ltd; will apply for a special credit line of up to   March 31,2023          Website:http://www.cninfo.com.cn
300 million yuan for the bill pool from Hefei Branch of Ping An Bank                                (No.:2023-011 and 2023-018)
Co., Ltd; and will apply for a special credit line of up to 400 million yuan
for the bill pool from Hefei Branch of Jiujiang Bank Co., Ltd.


  IV. Quarterly financial statements

  (i) Financial statement

  1. Consolidate Balance Sheet

  Prepared by Changhong Meiling Co., Ltd.
                                                                                                                             In RMB
                            Item                                       Ending balance                      Opening balance
     Current assets:
          Monetary fund                                                          5,853,929,091.02                   6,839,421,779.13
          Settlement provisions
          Capital lent
          Trading financial assets                                                250,802,870.28                       57,660,588.67
          Derivative financial assets
          Note receivable
          Account receivable                                                     1,885,992,283.98                   1,306,871,945.85
          Receivable financing                                                   1,568,606,632.24                   1,446,358,719.88
          Account paid in advance                                                  45,024,757.74                       45,859,491.55
          Insurance receivable
          Reinsurance receivables
     Contract reserve of reinsurance receivable
          Other account receivable                                                 97,372,570.89                       88,354,803.24
     Including: Interest receivable
          Dividend receivable
     Buying back the sale of financial assets
          Inventory                                                              2,448,841,210.43                   1,710,306,933.71
          Contract assets                                                            3,247,449.48                       3,530,922.13
          Assets held for sale
     Non-current asset due within one year                                        270,422,555.56                      170,167,638.89
          Other current assets                                                    166,239,145.08                      120,589,431.85
     Total current assets                                                       12,590,478,566.70                  11,789,122,254.90
     Non-current assets:
       Loans and payments on behalf
       Creditor's rights investment                                                202,020,611.11                     121,543,750.00
       Other Creditor's rights investment
     Long-term account receivable
     Long-term equity investment                                                    98,569,119.93                     100,384,428.50

                                                                                                                                   7
                                                CHANGHONG MEILING CO., LTD.THE FIRST QUARTERLY REPORT OF 2023




Investment in other equity instrument
Other non-current financial assets                             628,549,448.31                   628,549,448.31
     Investment real estate                                     52,403,667.58                    52,898,060.89
     Fixed assets                                             2,192,388,880.83                 2,229,553,866.96
     Construction in progress                                   80,533,557.98                    66,522,492.77
     Productive biological asset
     Oil and gas asset
     Right-of-use assets                                        33,430,513.42                    36,646,135.10
     Intangible assets                                         933,580,214.84                   900,568,008.21
Expense on research and development                             73,347,089.12                   102,148,390.57
     Goodwill
Long-term expenses to be apportioned                            16,390,674.26                    14,900,600.59
     Deferred income tax asset                                 157,032,303.12                   161,565,695.30
     Other non-current assets                                     2,411,486.64                      893,238.57
Total non-current asset                                       4,470,657,567.14                 4,416,174,115.77
Total assets                                                 17,061,136,133.84                16,205,296,370.67
Current liabilities:
     Short-term loans                                          488,328,290.84                   674,143,916.67
     Loan from central bank
     Capital borrowed
     Trading financial liability                                33,521,920.35                    41,961,524.78
     Derivative financial liability
     Note payable                                             4,681,667,908.72                 4,964,374,512.60
     Account payable                                          4,027,615,277.29                 2,917,997,138.00
     Accounts received in advance
     Contract liabilities                                      414,514,806.14                   358,755,397.77
     Selling financial asset of repurchase
Absorbing deposit and interbank deposit
     Security trading of agency
     Security sales of agency
     Wage payable                                              317,581,219.13                   348,154,915.13
     Taxes payable                                              76,006,534.88                    80,287,878.62
     Other account payable                                     901,277,527.86                   828,207,568.21
Including: Interest payable
  Dividend payable                                                4,978,994.16                     4,978,994.16
Commission charge and commission payable
     Reinsurance payable
     Liability held for sale
  Non-current liabilities due within one year                   29,702,488.42                    30,287,099.08
  Other current liabilities                                     29,608,735.19                    22,605,269.51
Total current liabilities                                    10,999,824,708.82                10,266,775,220.37
Non-current liabilities:
     Insurance contract reserve
     Long-term loans                                           148,000,000.00                   148,000,000.00
     Bonds payable
Including: Preferred stock


                                                                                                             8
                                                      CHANGHONG MEILING CO., LTD.THE FIRST QUARTERLY REPORT OF 2023




  Perpetual capital securities
       Lease liability                                                25,796,848.32                     28,164,287.97
       Long-term account payable                                        1,097,197.29                     1,145,286.48
       Long-term wages payable                                        10,329,623.86                     10,790,859.64
       Accrual liability                                              32,851,482.36                     32,685,631.78
       Deferred income                                               153,738,339.98                    161,013,911.91
       Deferred income tax liabilities                                16,171,532.93                     17,509,503.08
       Other non-current liabilities
  Total non-current liabilities                                      387,985,024.74                    399,309,480.86
  Total liabilities                                                11,387,809,733.56                10,666,084,701.23
  Owner’s equity:
       Share capital                                                1,029,923,715.00                 1,029,923,715.00
       Other equity instrument
  Including: Preferred stock
  Perpetual capital securities
       Capital public reserve                                       2,806,493,904.30                 2,806,493,904.30
       Less: Treasury shares
    Other comprehensive income                                        -20,069,224.75                   -20,881,462.63
    Special reserve                                                     6,929,368.76                     2,467,205.78
       Surplus public reserve                                        441,218,691.48                    441,218,691.48
       Provision of general risk
       Retained profit                                              1,031,789,716.89                   909,249,365.79
  Total owner’ s equity attributable to parent
                                                                    5,296,286,171.68                 5,168,471,419.72
  company
       Minority interests                                            377,040,228.60                    370,740,249.72
  Total owner’ s equity                                            5,673,326,400.28                 5,539,211,669.44
  Total liabilities and owner’ s equity                           17,061,136,133.84                16,205,296,370.67

Legal Representative: Wu Dinggang
Person in charge of accounting works: Pang Haitao
Person in charge of accounting institute: Yang Jun

2. Consolidated Profit Statement
                                                                                                            In RMB
                                   Item                                 Current period             Last period
  I. Total operating income                                                  5,025,237,527.25        4,012,925,239.44
       Including: Operating income                                           5,025,237,527.25        4,012,925,239.44
                Interest income
                Insurance gained
    Commission charge and commission income
  II. Total operating cost                                                   4,890,898,229.81     4,011,460,060.46
       Including: Operating cost                                             4,288,663,147.76     3,505,133,832.06
                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


                                                                                                                   9
                                                             CHANGHONG MEILING CO., LTD.THE FIRST QUARTERLY REPORT OF 2023




              Reinsurance expense
              Tax and extras                                                         39,314,902.23            29,031,104.40
              Sales expense                                                         396,134,102.96           335,122,981.27
              Administrative expense                                                 77,699,944.12            74,774,111.15
              R&D expense                                                           127,905,030.12           108,762,671.65
              Financial expenses                                                    -38,818,897.38           -41,364,640.07
                Including: Interest expenses                                          5,614,718.39            11,459,855.40
                         Interest income                                             39,706,698.73            34,441,441.46
     Add: other income                                                               11,993,948.27            26,202,120.61
Investment income (Loss is listed with “-”)                                        11,296,852.87             7,547,051.46
Including: Investment income on affiliated company and joint
                                                                                      6,156,271.45             2,224,748.61
venture
The termination of income recognition for financial assets
                                                                                     -2,610,734.55
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 “-”)                          1,581,886.04             -1,533,990.67
Loss of credit impairment (Loss is listed with “-”)                               -15,886,816.82           -13,619,904.38
Losses of devaluation of asset (Loss is listed with “-”)                          -12,758,737.76            -12,316,116.48
Income from assets disposal (Loss is listed with “-”)                                                        3,689,706.71
III. Operating profit (Loss is listed with “-”)                                   130,566,430.04            11,434,046.23
     Add: Non-operating income                                                        5,645,604.54             1,073,158.74
     Less: Non-operating expense                                                       633,242.26                795,726.90
IV. Total profit (Loss is listed with “-”)                                        135,578,792.32            11,711,478.07
     Less: Income tax expense                                                         7,491,433.56             -1,669,169.27
V. Net profit (Net loss is listed with “-”)                                       128,087,358.76            13,380,647.34
   (i) Classify by business continuity
1. Net profit from continuing operations (net loss listed with “-”)               128,087,358.76            13,380,647.34
2. Net profit from termination of operations (net loss listed with
“-”)
     (ii) Classify by ownership
1.Net profit attributable to owner’s of parent company                             122,540,351.10             5,147,648.23
2.Minority shareholders’ gains and losses                                            5,547,007.66             8,232,999.11
VI. Net after-tax of other comprehensive income                                       1,054,218.75              -344,376.37
   Net after-tax of other comprehensive income attributable to
                                                                                       812,237.88               -369,715.25
owners of parent company
      (i) Other comprehensive income items which will not be
reclassified subsequently to profit of loss
1.Changes of the defined benefit plans that re-measured
2.Other comprehensive income under equity method that cannot
be transfer to gain/loss
3.Change of fair value of investment in other equity instrument
4.Fair value change of enterprise's credit risk
5. Other
 (ii) Other comprehensive income items which will be
                                                                                       812,237.88               -369,715.25
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



                                                                                                                         10
                                                          CHANGHONG MEILING CO., LTD.THE FIRST QUARTERLY REPORT OF 2023




  4.Credit impairment provision for other debt investment
  5.Cash flow hedging reserve
  6.Translation differences arising on translation of foreign
                                                                                        812,237.88             -369,715.25
  currency financial statements
  7.Other
  Net after-tax of other comprehensive income attributable to
                                                                                        241,980.87                 25,338.88
  minority shareholders
  VII. Total comprehensive income                                                 129,141,577.51             13,036,270.97
  Total comprehensive income attributable to owners of parent
                                                                                  123,352,588.98              4,777,932.98
  Company
  Total comprehensive income attributable to minority
                                                                                    5,788,988.53              8,258,337.99
  shareholders
  VIII. Earnings per share:
  (i) Basic earnings per share                                                             0.1190                    0.0050
  (ii) Diluted earnings per share                                                          0.1190                    0.0050
Enterprise combine under the same control in the Period, the combined party realized net profit of 0.00 Yuan
before combination, and realized 0.00 Yuan at last period for combined party.
Legal Representative: Wu Dinggang
Person in charge of accounting works: Pang Haitao
Person in charge of accounting institute: Yang Jun

3. Consolidated Cash Flow Statement
                                                                                                                   In RMB
                                 Item                                  Current period                Last period
  I. Cash flows arising from operating activities:
  Cash received from selling commodities and providing labor
                                                                           4,561,489,109.85               3,914,069,915.96
  services
  Net increase of customer deposit and interbank deposit
   Net increase of loan from central bank
  Net increase of capital borrowed from other financial
  institution
  Cash received from original insurance contract fee
  Net cash received from reinsurance business
  Net increase of insured savings and investment
  Cash received from interest, commission charge and
  commission
  Net increase of capital borrowed
  Net increase of returned business capital
  Net cash received by agents in sale and purchase of securities
  Write-back of tax received                                                119,861,984.88                  137,758,875.67
  Other cash received concerning operating activities                        23,940,223.82                   39,337,433.81
  Subtotal of cash inflow arising from operating activities                4,705,291,318.55               4,091,166,225.44
  Cash paid for purchasing commodities and receiving labor
                                                                           4,319,024,021.57               4,337,604,502.71
  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



                                                                                                                         11
                                                         CHANGHONG MEILING CO., LTD.THE FIRST QUARTERLY REPORT OF 2023




  Cash paid to/for staff and workers                                       500,241,447.73                448,108,157.26
  Taxes paid                                                                75,109,108.69                132,796,426.52
  Other cash paid concerning operating activities                          182,925,417.04                237,160,586.02
  Subtotal of cash outflow arising from operating activities              5,077,299,995.03              5,155,669,672.51
  Net cash flows arising from operating activities                         -372,008,676.48             -1,064,503,447.07
  II. Cash flows arising from investing activities:
  Cash received from recovering investment                                 150,000,000.00                  1,539,824.00
  Cash received from investment income                                      11,517,830.00                 11,003,504.00
  Net cash received from disposal of fixed, intangible and other
                                                                               114,445.00                  8,304,653.60
  long-term assets
  Net cash received from disposal of subsidiaries and other
  units
  Other cash received concerning investing activities                       54,625,623.42                 52,685,195.90
  Subtotal of cash inflow from investing activities                        216,257,898.42                 73,533,177.50
  Cash paid for purchasing fixed, intangible and other long-
                                                                            69,827,261.89                 71,711,824.73
  term assets
  Cash paid for investment                                                 560,000,000.00                220,000,000.00
  Net increase of mortgaged loans
  Net cash received from subsidiaries and other units obtained
  Other cash paid concerning investing activities                                 8,997.51                       700.67
  Subtotal of cash outflow from investing activities                       629,836,259.40                291,712,525.40
  Net cash flows arising from investing activities                         -413,578,360.98              -218,179,347.90
  III. Cash flows arising from financing activities
  Cash received from absorbing investment
  Including: Cash received from absorbing minority
  shareholders’ investment by subsidiaries
  Cash received from loans                                                 248,567,208.06                225,000,000.00
  Other cash received concerning financing activities                      250,646,926.33                  4,466,696.88
  Subtotal of cash inflow from financing activities                        499,214,134.39                229,466,696.88
  Cash paid for settling debts                                             435,000,000.00                175,000,000.00
  Cash paid for dividend and profit distributing or interest
                                                                              4,998,050.47                10,261,148.45
  paying
  Including: Dividend and profit of minority shareholder paid
  by subsidiaries
  Other cash paid concerning financing activities                           45,458,808.90                  4,144,046.56
  Subtotal of cash outflow from financing activities                       485,456,859.37                189,405,195.01
  Net cash flows arising from financing activities                          13,757,275.02                 40,061,501.87
  IV. Influence on cash and cash equivalents due to fluctuation
                                                                            -11,739,344.83                   398,221.49
  in exchange rate
  V. Net increase of cash and cash equivalents                             -783,569,107.27             -1,242,223,071.61
  Add: Balance of cash and cash equivalents at the period-
                                                                          6,113,222,069.76              5,840,194,931.57
  begin
  VI. Balance of cash and cash equivalents at the period-end              5,329,652,962.49              4,597,971,859.96
Legal Representative: Wu Dinggang
Person in charge of accounting works: Pang Haitao
Person in charge of accounting institute: Yang Jun

(ii) Audit report

Whether the 1st quarterly report has been audited or not
□Yes √ No

                                                                                                                     12
                                                CHANGHONG MEILING CO., LTD.THE FIRST QUARTERLY REPORT OF 2023




The Fist quarterly report of the Company has not been audited.

                                                                 Board of Directors of Changhong Meiling Co., Ltd.

                                                                                                    April 20, 2023




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