CHANGHONG MEILING CO., LTD.
Semi-Annual Report 2024
August 2024
CHANGHONG MEILING CO., LTD
SEMI-ANNUAL FINANCIAL REPORT 2024 (Unaudited)
I Audit report
Has the semi annual report been audited
□ Yes √ No
The company's semi annual financial report has not been audited.
II. Financial Statement
Statement in Financial Notes are carried in RMB/CNY
1. Consolidated Balance Sheet
Prepared by CHANGHONG MEILING CO., LTD.
June 30, 2024
In RMB
Item June 30, 2024 January 1, 2024
Current assets:
Monetary funds 9,049,689,291.78 8,840,685,525.71
Settlement provisions
Capital lent
Trading financial assets 1,091,019,993.13 39,236,447.63
Derivative financial assets
Note receivable 267,174.50
Account receivable 2,167,372,348.82 1,633,706,889.06
Receivable financing 1,600,373,357.87 1,641,858,740.34
Accounts paid in advance 26,026,323.72 45,738,805.90
Insurance receivable
Reinsurance receivables
Contract reserve of reinsurance
receivable
Other account receivable 80,790,579.55 82,953,808.97
Including: Interest receivable
Dividend receivable
Buying back the sale of financial assets
Inventories 3,570,153,407.57 2,022,738,412.97
Including：Data resources
Contractual assets 10,193,150.12 13,261,690.62
1
Assets held for sale
Non-current asset due within one year 122,294,027.78
Other current assets 634,179,060.52 225,419,883.07
Total current assets 18,229,797,513.08 14,668,161,406.55
Non-current assets:
Loans and payments on behalf 0.00
Debt investment 1,231,537,871.00 420,537,485.54
Other debt investment 0.00
Long-term account receivable 0.00
Long-term equity investment 112,836,567.94 112,745,811.75
Investment in other equity instrument 0.00
Other non-current financial assets 674,139,515.48 674,139,515.48
Investment real estate 49,948,104.52 50,920,487.71
Fixed assets 2,155,971,273.86 2,136,912,034.28
Construction in progress 69,381,313.71 69,920,839.20
Productive biological asset 0.00
Oil and gas asset 0.00
Right-of-use assets 115,425,096.53 49,993,400.61
Intangible assets 889,031,727.48 886,455,434.73
Including：Data resources
Expense on Research and Development 110,820,740.92 97,177,535.34
Including：Data resources
Goodwill 0.00
Long-term expenses to be apportioned 33,215,466.40 35,698,465.62
Deferred income tax asset 158,259,901.69 162,340,495.03
Other non-current asset 13,906,387.31 26,601,614.35
Total non-current asset 5,614,473,966.84 4,723,443,119.64
Total assets 23,844,271,479.92 19,391,604,526.19
Current liabilities:
Short-term loans 1,145,550,587.35 1,134,102,419.03
Loan from central bank 0.00
Capital borrowed 0.00
Trading financial liability 46,906,758.56 32,229,012.86
Derivative financial liability 0.00
Note payable 7,438,928,526.00 5,904,387,089.98
Account payable 6,482,294,160.76 3,882,303,908.89
Accounts received in advance 847,417.67 55,949.90
Contractual liability 394,822,462.19 405,698,756.02
Selling financial asset of repurchase 0.00
Absorbing deposit and interbank deposit 0.00
2
Security trading of agency 0.00
Security sales of agency 0.00
Wage payable 445,960,283.15 443,612,216.56
Taxes payable 76,400,837.31 91,917,751.71
Other account payable 1,039,236,170.68 884,714,721.30
Including: Interest payable 0.00
Dividend payable 6,005,989.72 5,384,407.44
Commission charge and commission
0.00
payable
Reinsurance payable 0.00
Liability held for sale 0.00
Non-current liabilities due within one
59,795,173.12 48,822,798.47
year
Other current liabilities 17,855,988.67 19,172,541.50
Total current liabilities 17,148,598,365.46 12,847,017,166.22
Non-current liabilities:
Insurance contract reserve 0.00
Long-term loans 89,058,089.90 108,000,000.00
Bonds payable 0.00
Including: Preferred stock 0.00
Perpetual capital securities 0.00
Lease liability 104,173,573.28 43,488,292.70
Long-term account payable 627,878.52 800,347.84
Long-term wages payable 10,530,588.34 11,417,181.82
Accrual liability 35,570,774.19 32,054,790.39
Deferred income 119,482,607.70 132,977,494.33
Deferred income tax liabilities 28,890,023.41 21,814,466.43
Other non-current liabilities 0.00
Total non-current liabilities 388,333,535.34 350,552,573.51
Total liabilities 17,536,931,900.80 13,197,569,739.73
Owner’s equity:
Share capital 1,029,923,715.00 1,029,923,715.00
Other equity instrument 0.00
Including: Preferred stock 0.00
Perpetual capital securities 0.00
Capital public reserve 2,805,503,457.77 2,805,503,457.77
Less: Inventory shares 0.00
Other comprehensive income -21,877,980.74 -20,704,362.05
Reasonable reserve 14,454,178.04 11,246,811.91
Surplus public reserve 477,053,194.82 477,053,194.82
Provision of general risk 0.00
Retained profit 1,627,816,138.02 1,521,759,836.64
3
Total owner’ s equity attributable to
5,932,872,702.91 5,824,782,654.09
parent company
Minority interests 374,466,876.21 369,252,132.37
Total owner’ s equity 6,307,339,579.12 6,194,034,786.46
Total liabilities and owner’ s equity 23,844,271,479.92 19,391,604,526.19
Legal Representative: Wu Dinggang
Person in charge of accounting works: Pang Haitao
Person in charge of accounting institute: Yang Jun
2. Balance Sheet of Parent Company
In RMB
Item June 30, 2024 January 1, 2024
Current assets:
Monetary funds 3,726,975,756.84 4,809,758,761.19
Trading financial assets 755,898,224.23 18,729,757.94
Derivative financial assets
Note receivable 38,674.50
Account receivable 1,238,008,121.72 1,451,795,533.72
Receivable financing 1,172,289,956.04 1,497,014,392.88
Accounts paid in advance 38,578,600.05 57,223,852.86
Other account receivable 67,480,000.95 61,841,221.91
Including: Interest receivable
Dividend receivable
Inventories 733,760,107.85 563,055,688.46
Data resources
Contractual assets 37,408.05 37,408.05
Assets held for sale
Non-current assets maturing within one
122,294,027.78
year
Other current assets 338,807,851.70 117,873,746.80
Total current assets 8,071,836,027.43 8,699,663,066.09
Non-current assets:
Debt investment 741,391,902.78 185,038,444.44
Other debt investment
Long-term receivables
Long-term equity investments 1,858,536,438.74 1,857,475,810.90
Investment in other equity instrument
Other non-current financial assets 639,796,405.98 639,796,405.98
Investment real estate 3,230,606.15 3,335,032.47
Fixed assets 1,094,447,507.55 1,129,605,191.26
Construction in progress 47,182,435.42 23,067,134.99
4
Productive biological assets
Oil and natural gas assets
Right-of-use assets 13,900,722.96 14,847,119.40
Intangible assets 451,229,552.02 450,919,869.65
Data resources
Research and development costs 53,940,097.24 59,134,989.07
Data resources
Goodwill
Long-term deferred expenses 16,968,304.60 18,688,725.10
Deferred income tax assets 91,953,130.46 112,630,572.62
Other non-current assets 638,649.57 638,649.57
Total non-current assets 5,013,215,753.47 4,495,177,945.45
Total assets 13,085,051,780.90 13,194,841,011.54
Current liabilities:
Short-term borrowings 827,328,642.91 1,128,097,377.36
Trading financial liability 21,726,469.38 13,310,995.04
Derivative financial liability
Notes payable 3,289,284,464.26 2,697,168,522.01
Account payable 2,085,829,995.33 2,296,410,046.78
Accounts received in advance
Contractual liability 86,009,211.06 107,529,353.67
Wage payable 159,344,814.67 159,773,962.41
Taxes payable 7,955,060.25 25,137,168.64
Other accounts payable 1,014,893,542.38 951,772,428.91
Including: Interest payable
Dividend payable 5,405,989.72 4,784,407.44
Liability held for sale
Non-current liabilities due within one
47,410,970.58 42,339,541.12
year
Other current liabilities 4,402,429.73 4,875,594.29
Total current liabilities 7,544,185,600.55 7,426,414,990.23
Non-current liabilities:
Long-term loans 83,000,000.00 108,000,000.00
Bonds payable
Including: Preferred stock
Perpetual capital securities
Lease liability 13,730,549.88 14,511,484.16
Long-term account payable
Long term employee compensation
5,945,685.56 6,554,481.48
payable
Accrued liabilities 8,758,265.23 8,758,265.23
Deferred income 70,196,628.90 75,130,950.40
5
Deferred income tax liabilities 10,223,883.79 13,589,235.48
Other non-current liabilities
Total non-current liabilities 191,855,013.36 226,544,416.75
Total liabilities 7,736,040,613.91 7,652,959,406.98
Owners’ 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 2,740,508,510.57 2,740,508,510.57
Less: Inventory shares
Other comprehensive income
Special reserve 1,330,778.37 505,111.75
Surplus reserve 476,835,029.14 476,835,029.14
Retained profit 1,100,413,133.91 1,294,109,238.10
Total owner’s equity 5,349,011,166.99 5,541,881,604.56
Total liabilities and owner’s equity 13,085,051,780.90 13,194,841,011.54
Legal Representative: Wu Dinggang
Person in charge of accounting works: Pang Haitao
Person in charge of accounting institute: Yang Jun
3. Consolidated Profit Statement
In RMB
Item Semi-annual of 2024 Semi-annual of 2023
I. Total operating income 14,947,670,291.70 12,828,694,323.57
Including: Operating income 14,947,670,291.70 12,828,694,323.57
Interest income
Insurance gained
Commission charge and commission income
II. Total operating cost 14,492,584,406.08 12,396,558,239.03
Including: Operating cost 13,261,806,565.80 11,178,914,075.83
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 53,110,913.19 98,025,766.62
Sales expense 834,329,749.56 786,493,259.32
6
Administrative expense 157,436,505.99 182,962,865.60
R&D expense 287,601,598.28 265,176,197.93
Financial expense -101,700,926.74 -115,013,926.27
Including: Interest expenses 12,799,719.70 13,185,503.15
Interest income 98,725,551.34 83,240,562.07
Add: Other income 81,307,947.62 32,328,256.66
Investment income (Loss is listed with “-”) 2,933,725.87 14,377,940.05
Including: Investment income on affiliated company and
7,391,368.30 12,544,969.44
joint venture
The termination of income recognition for financial assets
-24,604,289.53 -14,192,040.21
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 “-”) -42,719,405.68 -56,428,183.43
Loss of credit impairment (Loss is listed with “-”) 12,475,890.64 -41,081,589.83
Losses of devaluation of asset (Loss is listed with “-”) -29,258,587.16 -18,167,335.89
Income from assets disposal (Loss is listed with “-”) 36,334.95
III. Operating profit (Loss is listed with “-”) 479,861,791.86 363,165,172.10
Add: Non-operating income 2,550,542.70 10,704,019.80
Less: Non-operating expense 4,477,090.10 3,014,799.22
IV. Total profit (Loss is listed with “-”) 477,935,244.46 370,854,392.68
Less: Income tax expense 53,105,204.51 925,010.04
V. Net profit (Net loss is listed with “-”) 424,830,039.95 369,929,382.64
(i) Classify by business continuity
1.continuous operating net profit (net loss listed with ‘-”) 424,830,039.95 369,929,382.64
2.termination of net profit (net loss listed with ‘-”)
(ii) Classify by ownership
1.Net profit attributable to owner’s of parent company 415,033,415.88 358,054,844.74
2.Minority shareholders’ gains and losses 9,796,624.07 11,874,537.90
VI. Net after-tax of other comprehensive income -1,142,407.83 2,267,837.82
Net after-tax of other comprehensive income attributable to
-1,173,618.69 2,021,916.55
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
-1,173,618.69 2,021,916.55
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
7
3.Amount of financial assets re-classify to other
comprehensive income
4.Credit impairment provision for other debt investment
5.Cash flow hedging reserve
6.Translation differences arising on translation of foreign
-1,173,618.69 2,021,916.55
currency financial statements
7.Other
Net after-tax of other comprehensive income attributable to
31,210.86 245,921.27
minority shareholders
VII. Total comprehensive income 423,687,632.12 372,197,220.46
Total comprehensive income attributable to owners of
413,859,797.19 360,076,761.29
parent Company
Total comprehensive income attributable to minority
9,827,834.93 12,120,459.17
shareholders
VIII. Earnings per share:
(i) Basic earnings per share 0.4030 0.3477
(ii) Diluted earnings per share 0.4030 0.3477
In the current period, if there is a merger of enterprises under the same control, the net profit realized by the
merged party before the merger is 0 yuan, and the net profit realized by the merged party in the previous period is
0 yuan.
Legal Representative: Wu Dinggang
Person in charge of accounting works: Pang Haitao
Person in charge of accounting institute: Yang Jun
4. Profit Statement of Parent Company
In RMB
Item Semi-annual of 2024 Semi-annual of 2023
I. Operating income 4,969,902,647.32 4,338,699,541.92
Less: Operating cost 4,525,131,724.21 3,954,954,574.25
Taxes and surcharge 23,478,425.44 36,432,651.42
Sales expenses 150,916,822.25 94,839,586.49
Administration expenses 50,816,647.13 49,060,555.60
R&D expenses 133,895,567.76 118,815,372.05
Financial expenses -41,115,313.08 -36,066,516.62
Including: Interest expenses 9,051,889.42 12,503,638.74
Interest income 50,681,932.56 39,678,411.29
Add: Other income 7,598,647.10 10,946,996.56
Investment income (Loss is listed with “-”) 26,670,093.50 68,376,405.75
Including: Investment income on affiliated Company and
6,158,368.75 11,539,929.52
joint venture
The termination of income recognition for financial assets
-2,635,478.39 -4,223,097.22
measured by amortized cost (Loss is listed with “-”)
Net exposure hedging income (Loss is listed with “-”)
Changing income of fair value (Loss is listed with “-”) -21,247,008.05 -20,365,050.80
Loss of credit impairment (Loss is listed with “-”) -168,300.27 -7,182,062.31
Losses of devaluation of asset (Loss is listed with “-”) -5,947,448.04 -808,792.91
8
Income on disposal of assets (Loss is listed with “-”) 3,044.16
II. Operating profit (Loss is listed with “-”) 133,687,802.01 171,630,815.02
Add: Non-operating income 165,605.98 496,859.54
Less: Non-operating expense 1,260,307.21 2,712,957.69
III. Total Profit (Loss is listed with “-”) 132,593,100.78 169,414,716.87
Less: Income tax 17,312,090.47 -1,667,121.35
IV. Net profit (Net loss is listed with “-”) 115,281,010.31 171,081,838.22
(i) continuous operating net profit (net loss listed with ‘-”) 115,281,010.31 171,081,838.22
(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 115,281,010.31 171,081,838.22
VII. Earnings per share:
(i) Basic earnings per share 0.1119 0.1661
(ii) Diluted earnings per share 0.1119 0.1661
Legal Representative: Wu Dinggang
Person in charge of accounting works: Pang Haitao
Person in charge of accounting institute: Yang Jun
5. Consolidated Cash Flow Statement
In RMB
Item Semi-annual of 2024 Semi-annual of 2023
I. Cash flows arising from operating activities:
Cash received from selling commodities and providing
15,308,589,791.30 12,198,688,836.73
labor services
Net increase of customer deposit and interbank deposit
9
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 563,109,006.37 335,722,174.27
Other cash received concerning operating activities 37,974,186.47 45,885,272.47
Subtotal of cash inflow arising from operating activities 15,909,672,984.14 12,580,296,283.47
Cash paid for purchasing commodities and receiving labor
11,525,479,789.40 9,633,823,103.98
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 1,058,061,492.06 969,995,100.78
Taxes paid 201,465,905.00 220,348,189.39
Other cash paid concerning operating activities 396,439,921.08 345,610,079.51
Subtotal of cash outflow arising from operating activities 13,181,447,107.54 11,169,776,473.66
Net cash flows arising from operating activities 2,728,225,876.60 1,410,519,809.81
II. Cash flows arising from investing activities:
Cash received from recovering investment 1,420,000,000.00 530,000,000.00
Cash received from investment income 28,412,801.63 29,194,568.79
Net cash received from disposal of fixed, intangible and
200,791.00 2,580,708.68
other long-term assets
Net cash received from disposal of subsidiaries and other
units
Other cash received concerning investing activities 101,996,559.35 83,960,584.77
Subtotal of cash inflow from investing activities 1,550,610,151.98 645,735,862.24
Cash paid for purchasing fixed, intangible and other long-
149,362,697.07 112,867,755.64
term assets
Cash paid for investment 3,580,000,000.00 990,000,000.00
Net increase of mortgaged loans
Net cash received from subsidiaries and other units
obtained
Other cash paid concerning investing activities 7,111,935.45 14,291,587.29
Subtotal of cash outflow from investing activities 3,736,474,632.52 1,117,159,342.93
Net cash flows arising from investing activities -2,185,864,480.54 -471,423,480.69
10
III. Cash flows arising from financing activities:
Cash received from absorbing investment
Including: Cash received from absorbing minority
shareholders’ investment by subsidiaries
Cash received from loans 1,127,882,556.92 738,227,027.56
Other cash received concerning financing activities 72,296,545.79 246,707,138.50
Subtotal of cash inflow from financing activities 1,200,179,102.71 984,934,166.06
Cash paid for settling debts 1,131,967,080.14 543,000,000.00
Cash paid for dividend and profit distributing or interest
325,527,935.72 94,160,552.96
paying
Including: Dividend and profit of minority shareholder paid
5,083,093.40 16,677,010.63
by subsidiaries
Other cash paid concerning financing activities 80,515,863.94 160,042,182.97
Subtotal of cash outflow from financing activities 1,538,010,879.80 797,202,735.93
Net cash flows arising from financing activities -337,831,777.09 187,731,430.13
IV. Influence on cash and cash equivalents due to
17,439,311.30 5,527,412.31
fluctuation in exchange rate
V. Net increase of cash and cash equivalents 221,968,930.27 1,132,355,171.56
Add: Balance of cash and cash equivalents at the period -
8,391,128,635.87 6,113,222,069.76
begin
VI. Balance of cash and cash equivalents at the period -end 8,613,097,566.14 7,245,577,241.32
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 Semi-annual of 2024 Semi-annual of 2023
I. Cash flows arising from operating activities:
Cash received from selling commodities and providing
5,280,211,025.34 3,881,403,178.06
labor services
Write-back of tax received 293,706,672.31 105,626,324.39
Other cash received concerning operating activities 14,519,557.10 11,635,429.61
Subtotal of cash inflow arising from operating activities 5,588,437,254.75 3,998,664,932.06
Cash paid for purchasing commodities and receiving labor
4,180,482,491.50 3,259,367,184.55
service
Cash paid to/for staff and workers 291,758,151.83 253,472,494.63
Taxes paid 43,581,975.81 49,530,385.16
Other cash paid concerning operating activities 115,440,944.47 89,990,627.33
Subtotal of cash outflow arising from operating activities 4,631,263,563.61 3,652,360,691.67
Net cash flows arising from operating activities 957,173,691.14 346,304,240.39
II. Cash flows arising from investing activities:
Cash received from recovering investment 620,000,000.00
Cash received from investment income 27,533,505.78 74,682,585.15
Net cash received from disposal of fixed, intangible and
202,186.00 2,534,831.90
other long-term assets
11
Net cash received from disposal of subsidiaries and other
units
Other cash received concerning investing activities 53,882,098.29 38,996,739.61
Subtotal of cash inflow from investing activities 701,617,790.07 116,214,156.66
Cash paid for purchasing fixed, intangible and other long-
85,678,643.57 76,197,096.37
term assets
Cash paid for investment 2,100,000,000.00 180,000,000.00
Net cash received from subsidiaries and other units
obtained
Other cash paid concerning investing activities 13,796,171.19
Subtotal of cash outflow from investing activities 2,185,678,643.57 269,993,267.56
Net cash flows arising from investing activities -1,484,060,853.50 -153,779,110.90
III. Cash flows arising from financing activities:
Cash received from absorbing investment
Cash received from loans 809,669,129.02 738,227,027.56
Other cash received concerning financing activities 150,450,083.63 95,587,946.50
Subtotal of cash inflow from financing activities 960,119,212.65 833,814,974.06
Cash paid for settling debts 1,131,967,080.14 518,000,000.00
Cash paid for dividend and profit distributing or interest
316,626,529.97 76,787,308.98
paying
Other cash paid concerning financing activities 7,491,686.80 48,994,977.36
Subtotal of cash outflow from financing activities 1,456,085,296.91 643,782,286.34
Net cash flows arising from financing activities -495,966,084.26 190,032,687.72
IV. Influence on cash and cash equivalents due to
-1,950,942.84 2,973,726.15
fluctuation in exchange rate
V. Net increase of cash and cash equivalents -1,024,804,189.46 385,531,543.36
Add: Balance of cash and cash equivalents at the period -
4,746,147,736.99 3,086,968,775.61
begin
VI. Balance of cash and cash equivalents at the period -end 3,721,343,547.53 3,472,500,318.97
Legal Representative: Wu Dinggang
Person in charge of accounting works: Pang Haitao
Person in charge of accounting institute: Yang Jun
12
7. Statement of Changes in Owners’ Equity (Consolidated)
This Period
In RMB
Semi-annual of 2024
Owners’ equity attributable to the parent Company
Other
equity instrument
Item Perp Capita Less: Provis
Pref etual Other Minority Total owners’
Share l Invent Reasonable Surplus ion of Retained interests equity
erre capit comprehensive Other Subtotal
capital Othe reserv ory reserve reserve genera profit
d al income
r e shares l risk
stoc secu
k ritie
s
I. The ending 2,805,
1,029,923,7 477,053,1 1,521,759,836 5,824,782,654.0
balance of the 503,4 -20,704,362.05 11,246,811.91 369,252,132.37 6,194,034,786.46
previous year 15.00 94.82 .64 9
57.77
Add: Changes
of accounting
policy
Error
correction of
the last period
Other
II. The 2,805,
beginning 1,029,923,7 477,053,1 1,521,759,836 5,824,782,654.0
503,4 -20,704,362.05 11,246,811.91 369,252,132.37 6,194,034,786.46
balance of the 15.00 94.82 .64 9
current year 57.77
III. Increase/
Decrease in
the period 106,056,301.3
-1,173,618.69 3,207,366.13 108,090,048.82 5,214,743.84 113,304,792.66
(Decrease is 8
listed with
“-”)
(i) Total
415,033,415.8
comprehensiv -1,173,618.69 413,859,797.19 9,827,834.93 423,687,632.12
e income 8
(ii) Owners’
devoted and
decreased
13
capital
1.Common
shares
invested by
shareholders
2. Capital
invested by
holders of
other equity
instruments
3. Amount
reckoned into
owners equity
with share-
based
payment
4. Other
-
(iii) Profit
308,977,114.5 -308,977,114.50 -5,083,093.40 -314,060,207.90
distribution
0
1. Withdrawal
of surplus
reserves
2. Withdrawal
of general risk
provisions
3. Distribution -
for owners (or 308,977,114.5 -308,977,114.50 -5,083,093.40 -314,060,207.90
shareholders) 0
4. Other
(iv) Carrying
forward
internal
owners’
equity
1. Capital
reserves
conversed to
capital (share
capital)
2. Surplus
reserves
conversed to
capital (share
14
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 3,207,366.13 3,207,366.13 470,002.31 3,677,368.44
reserve
1. Withdrawal
in the report 17,312,570.32 17,312,570.32 878,578.37 18,191,148.69
period
2. Usage in
the report 14,105,204.19 14,105,204.19 408,576.06 14,513,780.25
period
(vi) Others
IV. Balance at 2,805,
1,029,923,7 477,053,1 1,627,816,138 5,932,872,702.9
the end of the 503,4 -21,877,980.74 14,454,178.04 374,466,876.21 6,307,339,579.12
period 15.00 94.82 .02 1
57.77
Legal Representative: Wu Dinggang Person in charge of accounting works: Pang Haitao Person in charge of accounting institute: Yang Jun
Last Period
In RMB
Semi-annual of 2023
Owners’ equity attributable to the parent Company
Other Les
equity instrument s: Provi
Item Minority Total owners’
Per Inv Other sion
Capital Reasonable Surplus interests equity
Share capital Prefer pet ento comprehensive of Retained profit Other Subtotal
Othe reserve reserve reserve
red ual ry income gener
r shar al risk
stock ca
pit es
15
al
sec
uri
tie
s
I. The ending
1,029,923,71 2,806,49 441,201,47 909,082,037.6 5,168,286,872.
balance of the -20,881,462.63 2,467,205.78 370,748,395.26 5,539,035,267.35
previous year 5.00 3,904.30 1.98 6 09
Add: Changes
of accounting 17,219.50 167,328.13 184,547.63 -8,145.54 176,402.09
policy
Error
correction of
the last period
Other
II. The
beginning 1,029,923,71 2,806,49 441,218,69 909,249,365.7 5,168,471,419.
-20,881,462.63 2,467,205.78 370,740,249.72 5,539,211,669.44
balance of the 5.00 3,904.30 1.48 9 72
current year
III. Increase/
Decrease in
the period 265,361,710.3
2,021,916.55 9,648,600.83 277,032,227.77 -3,634,481.73 273,397,746.04
(Decrease is 9
listed with
“-”)
(i) Total
358,054,844.7
comprehensiv 2,021,916.55 360,076,761.29 12,120,459.17 372,197,220.46
e income 4
(ii) Owners’
devoted and
decreased
capital
1.Common
shares
invested by
shareholders
2. Capital
invested by
holders of
other equity
instruments
3. Amount
reckoned into
owners equity
with share-
based
16
payment
4. Other
(iii) Profit
-92,693,134.35 -92,693,134.35 -16,677,010.63 -109,370,144.98
distribution
1. Withdrawal
of surplus
reserves
2. Withdrawal
of general risk
provisions
3. Distribution
for owners (or -92,693,134.35 -92,693,134.35 -16,677,010.63 -109,370,144.98
shareholders)
4. Other
(iv) Carrying
forward
internal
owners’
equity
1. Capital
reserves
conversed to
capital (share
capital)
2. Surplus
reserves
conversed to
capital (share
capital)
3. Remedying
loss with
surplus
reserve
4. Carry-over
retained
earnings from
the defined
benefit plans
5. Carry-over
retained
earnings from
other
comprehensiv
e income
6. Other
17
(v)
Reasonable 9,648,600.83 9,648,600.83 922,069.73 10,570,670.56
reserve
1. Withdrawal
in the report 15,558,156.14 15,558,156.14 1,133,609.06 16,691,765.20
period
2. Usage in
the report 5,909,555.31 5,909,555.31 211,539.33 6,121,094.64
period
(vi) Others
IV. Balance at
1,029,923,71 2,806,49 441,218,69 1,174,611,076. 5,445,503,647.
the end of the -18,859,546.08 12,115,806.61 367,105,767.99 5,812,609,415.48
period 5.00 3,904.30 1.48 18 49
Legal Representative: Wu Dinggang Person in charge of accounting works: Pang Haitao Person in charge of accounting institute: Yang Jun
8. Statement of Changes in Owners’ Equity (Parent Company)
This Period
In RMB
Semi-annual of 2024
Other
equity instrument
Other
Item Perpet Less:
compreh Reasonable
Share capital Prefer ual Ot Capital reserve Inventor Surplus reserve Retained profit Other Total owners’ equity
y shares ensive reserve
red capital he
stock securit r income
ies
I. The ending balance of the
1,029,923,715.00 2,740,508,510.57 505,111.75 476,835,029.14 1,294,109,238.10 5,541,881,604.56
previous year
Add: Changes of accounting
policy
Error correction of the last
period
Other
II. The beginning balance of the
1,029,923,715.00 2,740,508,510.57 505,111.75 476,835,029.14 1,294,109,238.10 5,541,881,604.56
current year
III. Increase/ Decrease in the
period (Decrease is listed with 825,666.62 -193,696,104.19 -192,870,437.57
“-”)
(i) Total comprehensive income 115,281,010.31 115,281,010.31
(ii) Owners’ devoted and
18
decreased capital
1.Common shares invested by
shareholders
2. Capital invested by holders of
other equity instruments
3. Amount reckoned into owners
equity with share-based payment
4. Other
(iii) Profit distribution -308,977,114.50 -308,977,114.50
1. Withdrawal of surplus reserves
2. Distribution for owners (or
-308,977,114.50 -308,977,114.50
shareholders)
3. Other
(iv) Carrying forward internal
owners’ equity
1. Capital reserves conversed to
capital (share capital)
2. Surplus reserves conversed to
capital (share capital)
3. Remedying loss with surplus
reserve
4. Carry-over retained earnings
from the defined benefit plans
5. Carry-over retained earnings
from other comprehensive income
6. Other
(v) Reasonable reserve 825,666.62 825,666.62
1. Withdrawal in the report period 4,842,286.80 4,842,286.80
2. Usage in the report period 4,016,620.18 4,016,620.18
(vi) Others
IV. Balance at the end of the
1,029,923,715.00 2,740,508,510.57 1,330,778.37 476,835,029.14 1,100,413,133.91 5,349,011,166.99
period
Legal Representative: Wu Dinggang Person in charge of accounting works: Pang Haitao Person in charge of accounting institute: Yang Jun
Last period
In RMB
Semi-annual of 2023
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
19
I. The ending balance of
1,029,923,715.00 2,740,508,510.57 687,069.38 440,983,306.30 1,064,136,866.98 5,276,239,468.23
the previous year
Add: Changes of
17,219.50 154,975.45 172,194.95
accounting policy
Error correction of
the last period
Other
II. The beginning
balance of the current 1,029,923,715.00 2,740,508,510.57 687,069.38 441,000,525.80 1,064,291,842.43 5,276,411,663.18
year
III. Increase/ Decrease
in the period (Decrease 1,544,823.02 78,388,703.87 79,933,526.89
is listed with “-”)
(i) Total comprehensive
171,081,838.22 171,081,838.22
income
(ii) Owners’ devoted and
decreased capital
1.Common shares
invested by shareholders
2. Capital invested by
holders of other equity
instruments
3. Amount reckoned into
owners equity with
share-based payment
4. Other
(iii) Profit distribution -92,693,134.35 -92,693,134.35
1. Withdrawal of surplus
reserves
2. Distribution for
-92,693,134.35 -92,693,134.35
owners (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
20
5. Carry-over retained
earnings from other
comprehensive income
6. Other
(v) Reasonable reserve 1,544,823.02 1,544,823.02
1. Withdrawal in the
4,278,881.39 4,278,881.39
report period
2. Usage in the report
2,734,058.37 2,734,058.37
period
(vi) Others
IV. Balance at the end of
1,029,923,715.00 2,740,508,510.57 2,231,892.40 441,000,525.80 1,142,680,546.30 5,356,345,190.07
the period
Legal Representative: Wu Dinggang Person in charge of accounting works: Pang Haitao Person in charge of accounting institute: Yang Jun
21
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024
(Unless other wise specified, RMB for record in the Statement)
I. Company profile
Changhong Meiling Co., Ltd (hereinafter referred to as “the Company”) ，originally named as Hefei Meiling
Co., Ltd. is an incorporated Company established and reorganized by Hefei Meiling Refrigerator General
Factory and approved on June 12th 1992 through [WanTiGaiHanZi (1992) No.039] issued by original
Mechanism Reform Committee of Anhui Province. On August 30th 1993, through Anhui Provincial
Government [Wanzhenmi (1993) No.166] and re-examination of China Securities Regulatory Commission,
the Company made first public issue for 30 million A shares and the Company was listed on Oct. 18th, 1993 in
Shenzhen Stock Exchange. On August 13th, 1996, the Company was approved to issue 100 million B shares to
investors abroad through [ZhengWeiFa (1996) No.26] issued by China Securities Regulatory Commission. The
Company went public in Shenzhen Stock Exchange on August 28th, 1996.
State-owned Assets Supervision & Administration Commission of the State Council approved such transfers
with Document Guozi Chanquan (2007) No.253 Reply on Matters of Hefei Meiling Group Holdings Limited
Transferring Partial State-owned Ownership, Hefei Meiling Group Holdings Limited (hereinafter referred to
as Meiling Group) transferred its holding 37,852,683 shares in 82,852,683 state-owned shares of the Company
to Sichuan Changhong Electronic Group Co., Ltd (hereinafter referred to as Changhong Group), other
45,000,000 shares to Sichuan Changhong Electric Co. Ltd (hereinafter referred to as Sichuan Changhong). On
Aug 15, 2007, the above ownership was transferred and Cleaning Corporation Limited.
On 27 August 2007, State-owned Assets Supervision & Administration Commission of Anhui Provincial
Government replied with Document [WGZCQH (2007) No.309] Reply on “Related Matters of Share Merger
Reform of Hefei Meiling Co., Ltd.”, agreed the Company’s ownership split reform plan. The Company made
consideration that non-tradable share holders deliver 1.5 shares to A share holders per 10 shares, and original
Meiling Group made prepayment 3,360,329 shares for some non-tradable share holders as consideration for
split reform plan.
On 29 May 2008, concerning 34,359,384 state-owned shares (including 3,360,329 shares paid for other non-
tradable shareholders by original Meiling Group in share reform) held by original Meiling Group, the “Notice
of Freely Transfer of Meiling Electrics Equity held by Meiling Group”[HGZCQ(2008) No. 59] issued from
State-owned Assets Supervision & Administration Commission of Hefei Municipal, agrees to transfer the
above said shares to Hefei Xingtai Holding Group Co., Ltd.(“Xingtai Holding Co.,”) for free. On 7 August
2008, the “Reply of Transfer Freely of Part of the Shares of Hefei Meiling Co., Ltd. held by State-owned
shareholders” [GZCQ (2007) No. 752] issued by SASAC, agrees the above said transferring.
On October 29, 2008, Changhong Group signed Agreement on Equity Transfer of Hefei Meiling Co., Ltd with
Sichuan Changhong, in which 32,078,846 tradable A-shares with conditional subscription of the Company
(accounting for 7.76% in total shares) held by Changhong Group. On 23 December 2008, “Reply of Transfer
Freely of Part of the Shares of Hefei Meiling Co., Ltd. held by State-owned shareholders” [GZCQ (2008) No.
22
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024
(Unless other wise specified, RMB for record in the Statement)
1413] issued by SASAC agrees the above said share transferring.
On 24 December 2010, being deliberated and approved in 32nd Session of 6th BOD and 2nd Extraordinary
Shareholders’ General Meeting of 2010 as well as approval of document [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).
Since the first repurchase of shares on November 4, 2020, the company had cumulatively repurchased
14,674,166 shares of the company (B shares) in centralized bidding transactions through the special securities
account for repurchase until February 18, 2022, and completed the cancellation procedures of the repurchased
shares at the Shenzhen Branch of China Securities Depository and Clearing Co., Ltd. on March 2, 2022, a total
of 14,674,166 shares of the company (B shares) were cancelled, accounting for 1.4048% of the company's total
23
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024
(Unless other wise specified, RMB for record in the Statement)
share capital before cancellation. After the cancellation, the total share capital of the company was reduced
from 1,044,597,881 shares to 1,029,923,715 shares.
Ended as June 30, 2024, total share capital of the Company amounting to 1,029,923,715shares with ordinary
shares in full. Among which, 881,733,881 shares of A-share accounting 85.61% in total shares while B-share
with 148,189,834 shares accounting 14.39% in total shares. Specific capital structure is as follows:
Type of stock Quantity Proportion
(I)Restricted shares 6,510,535 0.63
1. State-owned shares
2. State-owned legal person’s shares 1,141,053 0.11
3. Other domestic shares 5,369,482 0.52
Including: Domestic legal person’s shares 3,363,539 0.33
Domestic natural person’s shares 2,005,943 0.19
4. Foreign shares
(II)Unrestricted shares 1,023,413,180 99.37
1. RMB Ordinary shares 875,223,346 84.98
2. Domestically listed foreign shares 148,189,834 14.39
3. Overseas listed foreign shares
4. Others
Total shares 1,029,923,715 100.00
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): 1,029,923,715 yuan; type of company: limited
liability company(joint venture and listed of Taiwan, Hong Kong and Macao).
This financial statement was approved by the Board of Directors of the Company on August 15, 2024.
II. Basis for preparation of financial statement
1.Basis for preparation
According to the actual transactions and matters, the Company's financial statements are prepared in
accordance with the Accounting Standards for Business Enterprises and its application guidelines, explanations
and other relevant provisions (hereinafter referred to as "Accounting Standards for Business Enterprises")
promulgated by the Ministry of Finance, as well as the disclosure-related provisions of No.15 Rules on
Information Disclosure and Compilation of Companies Offering Securities to the Public - General Provisions
on Financial Reports (revised in 2023) issued by China Securities Regulatory Commission (hereinafter referred
to as "CSRC").
24
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024
(Unless other wise specified, RMB for record in the Statement)
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.
III. Significant Accounting Policy and accounting Estimation
Specific accounting policies and accounting estimates tips: The specific accounting policies and accounting
estimates formulated by the company according to the actual production and operation characteristics include
receivables provisions for bad debts, inventory depreciation provisions, capitalization conditions of R & D
expenses, revenue recognition and measurement, etc.
1. Statement on observation of accounting standards for enterprise
The financial statements prepared by the Company meet the requirements of the Accounting Standards for
Business Enterprises, and truly, accurately and completely reflect the financial status of the Company on June
30, 2024, as well as the operating results and cash flow first half-year of 2024 .
2.Accounting period
The accounting period of the Company is the calendar date from 1 January to 31 December.
3.Operation cycle
Operation cycle of the Company was 12 months, and it is the standard of flow classification for assets and
liabilities.
4.Standard currency for accounting
The Company takes RMB as the standard currency for accounting.
5.Determination method and selection basis of importance standard
The Company follows the principle of materiality in preparing and disclosing financial statements. The matters
disclosed in the notes to the financial statements involving judgement by materiality standard, and the
determination method and selection basis of materiality standard are as follows:
Matters disclosed involving the judgment by Determination method and selection basis of importance
materiality standards standard
The individual recovery or reversal amount accounts for more than
Recovery or reversal of important accounts receivable
10% of the total recovery or reversal amount of accounts
bad debt reserves
receivable, and the amount is greater than RMB 10 million
The single item write off amount accounts for more than 10% of
Actual write off of important accounts receivable the total bad debt write off amount of various receivables, and the
amount is greater than 5 million yuan
The single provision amount accounts for 10% of the total bad debt
Important accounts receivable with single provision for
provision for various accounts receivable and is greater than RMB
bad debt reserves
50 million
Single debt investment accounts for 5% of the total debt investment
Important debt investment
and the amount is greater than RMB 20 million
The change in the book value of contract assets accounts for more
Significant changes in the book value of contract assets
than 30% of the initial balance of contract assets
Material construction in progress The budget of a single project is more than RMB 50 million
Material capitalized R&D projects The budget of a single project is more than RMB 20 million
Contractual liabilities with a single aging of more than one year
Material contractual liabilities with an age of more than
account for more than 10% of the total contractual liabilities and
one year
are more than RMB 50 million
25
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024
(Unless other wise specified, RMB for record in the Statement)
Matters disclosed involving the judgment by Determination method and selection basis of importance
materiality standards standard
Significant changes in the book value of contractual The change in the book value of contractual liabilities accounts for
liabilities more than 30% of the initial balance of contractual liabilities
Accounts payable with a single account age exceeding 1 year
Important accounts payable account for more than 5% of the total accounts payable and with
an amount greater than RMB 100 million
Other payables with a single account age exceeding 1 year account
Important other payables for more than 5% of the total other payables and an amount greater
than RMB 50 million
Subsidiary net assets account for over 1% of the company's net
Important non wholly-owned subsidiaries
assets
The book value of long-term equity investments in a single
invested entity accounts for more than 1% of the company's net
Important joint ventures or associates assets and the amount is greater than RMB 50 million, or the
investment gains and losses under the equity method account for
more than 1% of the company's consolidated net profit
Individual investment activities account for more than 10% of the
total cash inflows or outflows related to received or paid
Important investment activities
investment activities, and the amount is greater than RMB 100
million
Significant activities that do not involve current cash Not involving current cash inflows and outflows, with an impact
inflows and outflows on the current financial statements greater than 10% of net assets
6.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.
7.Criteria for Control and Preparation Method of Consolidated Financial Statements
Control means that the Company has the power over the investee, enjoys variable returns by participating in
the related activities of the investee, and has the ability to influence the amount of returns by using the power
26
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024
(Unless other wise specified, RMB for record in the Statement)
over the investee.
The Company shall put all the subsidiaries controlled and main body structured into consolidated financial
statements.
Any difference arising from the inconformity of accounting year or accounting policies between the
subsidiaries and the Company shall be adjusted in the consolidated financial statements.
All the material inter-company transactions, non-extraordinary items and unrealized profit within the
combination scope are written-off when preparing consolidated financial statement. Owners’ equity of
subsidiary not attributable to parent company and current net gains and losses, other comprehensive income
and total comprehensive income attributable to minority shareholders are recognized as non-controlling
interests, minority interests, other comprehensive income attributable to minority shareholders and total
comprehensive income attributable to minority shareholders in consolidated financial statement respectively.
As for subsidiary acquired through business combination under common control, its operating results and cash
flow will be included in consolidated financial statement since the beginning of the period when combination
occurs. When preparing comparative consolidated financial statement, the relevant items in previous years
financial statement shall be adjusted as if the reporting entity formed upon combination has been existing since
the ultimate controller commenced relevant control.
As for equity interests of the investee under common control acquired through various transactions which
eventually formed business combination, the Company shall supplement disclosure of the accounting treatment
in consolidated financial statement in the reporting period when controlling power is obtained. For example,
as for equity interests of the investee under common control acquired through various transactions which
eventually formed business combination, adjustments shall be made as if the current status had been existing
when the ultimate controller commenced control in connection of preparing consolidated financial statement;
in connection with preparing comparative statement, the Company shall consolidate the relevant assets and
liabilities of the acquiree into the Company’s comparative consolidated financial statement to the extent not
earlier than the timing when the Company and the acquiree are all under control of the ultimate controller, and
the net assets increased due to combination shall be used to adjust relevant items under owners’ equity in
comparative statement. In order to prevent double computation of the value of the acquiree’s net assets, the
relevant profits and losses, other comprehensive income and change of other net assets recognized during the
period from the date when the Company acquires original equity interests and the date when the Company and
the acquiree are all under ultimate control of the same party (whichever is later) to the date of combination in
respect of the long-term equity investment held by the Company before satisfaction of combination shall be
utilized to offset the beginning retained earnings and current gains and losses in the period as the comparative
financial statement involves, respectively.
As for subsidiary acquired through business combination not under common control, its operating results and
cash flow will be included in consolidated financial statement since the Company obtains controlling power.
When preparing consolidated financial statement, the Company shall adjust the subsidiary’s financial statement
based on the fair value of the various identifiable assets, liabilities or contingent liabilities recognized as of the
acquisition date.
As for equity interests of the investee not under common control acquired through various transactions which
eventually formed business combination, the Company shall supplement disclosure of the accounting treatment
in consolidated financial statement in the reporting period when controlling power is obtained. For example,
as for equity interests of the investee not under common control acquired through various transactions which
eventually formed business combination, when preparing consolidated financial statement, the Company
27
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024
(Unless other wise specified, RMB for record in the Statement)
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 subsidiary is realized through multi pletran section sunlit loss of
control and is a pack age deal. the accounting treatment of the sterna sections 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.
8. Accounting treatment for joint venture arrangement and joint controlled entity
The joint venture arrangement of the Company consists of joint controlled entity and joint venture. As for
jointly controlled entity, the Company determines the assets held and liabilities assumed separately as a party
to the jointly controlled entity, recognizes such assets and liabilities according to its proportion, and recognizes
relevant income and expense separately under relevant agreement or according to its proportion. As for asset
transaction relating to purchase and sales with the jointly controlled entity which does not constitute business
activity, part of the gains and losses arising from such transaction attributable to other participators of the
jointly controlled entity is only recognized.
9.Cash and cash equivalents
Cash in the cash flow statement comprises the Group’s cash on 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 known amounts of cash and which are subject to an in significant risk of changes in
value.
10. Foreign currency business and foreign currency financial statement conversion
28
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024
(Unless other wise specified, RMB for record in the Statement)
(1) Foreign currency business
As for the foreign currency business, the Company converts the foreign currency amount into RMB amount
pursuant to the spot exchange rate as of the business day. As at the balance sheet date, monetary items expressed
by foreign currency are converted into RMB pursuant to the spot exchange rate as of the balance sheet date.
The conversion difference occurred is recorded into prevailing gains and losses, other than the disclosure which
is made according to capitalization rules for the exchange difference occurred from the special foreign currency
borrowings borrowed for constructing and producing the assets satisfying condition of capitalization. As for
the foreign currency non-monetary items measured by fair value, the amount is then converted into RMB
according to the spot exchange rate as of the confirmation day for fair value. And the conversion difference
occurred during the procedure is recorded into prevailing gains and losses directly as change of fair value. As
for the foreign currency non-monetary items measured by historical cost, conversion is made with the spot
exchange rate as of the business day, with no change in RMB amount.
(2) Conversion of foreign currency financial statement
Spot exchange rate as of the balance sheet date is adopted for conversion of assets and liabilities in foreign
currency balance sheet; as for the items in statement of owners’ equity except for “Retained profit”, conversion
is made pursuant to the spot exchange rate of business day; income and expense items in income statement
then are also converted pursuant to the spot exchange rate of transaction day. Difference arising from the
aforementioned conversions shall be listed separately in items of owners’ equity. Spot exchange rate as of the
occurrence date of cash flow is adopted for conversion of foreign currency cash flow. The amount of cash
affected by exchange rate movement shall be listed separately in cash flow statement.
11. 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
29
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024
(Unless other wise specified, RMB for record in the Statement)
gains/losses. The classification of financial assets depends on the business model that the Group's enterprises
manage the financial assets and the cash flow characteristics of the financial assets.
1) The financial assets measured at amortized cost
Financial assets are classified as financial assets measured at amortized cost when they also meet the following
conditions: The group's business model for managing the financial assets is to collect contractual cash flows;
the contractual terms of the financial assets stipulate that cash flow generated on a specific date is only paid
for the principal and interest based on the outstanding principal amount. For such financial assets, the effective
interest method is used for subsequent measurement according to the amortized cost, and the gains or losses
arising from amortization or impairment are included in current profits and losses. Such financial assets mainly
include monetary funds, notes receivable, accounts receivable, other receivables, debt investment and long-
term receivables, and so on. The Group lists the debt investment and long-term receivables due within one year
(including one year) from the balance sheet date as non-current assets due within one year, and lists the debt
investment with time limit within one year (including one year) when acquired as other current assets.
2) Financial assets measured at fair value and whose changes are included in other comprehensive income
Financial assets are classified as financial assets measured at fair value and whose changes are included in
other comprehensive income when they also meet the following conditions: The Group's business model for
managing the financial assets is targeted at both the collection of contractual cash flows and the sale of financial
assets; the contractual terms of the financial asset stipulate that the cash flow generated on a specific date is
only the payment of the principal and the interest based on the outstanding principal amount. For such financial
assets, fair value is used for subsequent measurement. The discount or premium is amortized by using the
effective interest method and is recognized as interest income or expenses. Except the impairment losses and
the exchange differences of foreign currency monetary financial assets are recognized as the current profits
and losses, the changes in the fair value of such financial assets are recognized as other comprehensive income
until the financial assets are derecognized, the accumulated gains or losses are 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
30
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024
(Unless other wise specified, RMB for record in the Statement)
comprehensive income and recognize the provisions for loss.
Credit loss refers to the difference between all contractual cash flows that the Company discounts at the original
actual interest rate and are receivable in accordance with contract and all cash flows expected to be received,
that is, the present value of all cash shortages. Among them, for the purchase or source of financial assets that
have suffered credit impairment, the Company discounts the financial assets at the actual interest rate adjusted
by credit.
The Group considers all reasonable and evidenced information, including forward-looking information, based
on credit risk characteristics. When assessing the expected credit losses of receivables, they are classified
according to the specific credit risk characteristics as follows:
1) For receivables and contractual assets and lease receivables (including significant financing components
and not including significant financing components), the Group measures the provisions for loss based on the
amount of expected credit losses equivalent to the entire duration.
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);
②The 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.
The Group considers all reasonable and evidenced information, including forward-looking information, when
assessing expected credit losses. When there is objective evidence that its customer credit characteristics and
ageing combination cannot reasonably reflect its expected credit loss, the current value of the expected future
cash flow is measured by a single item, and the cash flow shortage is directly written down the book balance
of the financial asset.
2) Assess the expected credit losses on a case-by-case basis for other assets to which the financial instruments
are impaired, such as the loan commitments and financial guarantee contracts that are not measured at fair
value through profit or loss, financial assets measured at fair value and whose changes are recognized in other
comprehensive income; other financial assets measured at amortized cost (such as other current assets, other
non-current financial assets, etc.).
(4) Reorganization basis and measure method for transfer of financial assets
The financial assets meet one of following requirements will be terminated recognition: ① The contract rights
of collecting cash flow of the financial assets is terminated; ②The financial assets has already been transferred,
and the Company has transferred almost all risks and remunerations of financial assets ownership to the
transferee; ③The financial assets has been transferred, even though the Company has neither transferred nor
kept almost all risks and remunerations of financial assets ownership, the Company has given up controlling
the financial assets.
If the enterprise has neither transferred or kept almost all risks and remunerations of financial assets ownership,
31
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024
(Unless other wise specified, RMB for record in the Statement)
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.
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
32
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024
(Unless other wise specified, RMB for record in the Statement)
The financial guarantee contract of a financial liability which is not designated to be measured at fair
value through profit or loss is initially recognized at fair value, and its subsequent measurement is carried out
by the higher one between the amount confirmed in accordance with the Accounting Standards for Business
Enterprises No. 13 — Contingencies after initial recognition and the balance after deducting the accumulated
amortization amount determined in accordance with the principle of Accounting Standards for Business
Enterprises No. 14—Revenue from the initial recognition amount.
(6) Termination of recognition of financial liability
The financial liability or part of it can only be terminated for recognized when all or part of the current
obligation of the financial liability has been discharged. The Group (debtor) and the creditor sign an agreement
to replace the existing financial liabilities with new financial liabilities, and if the contract terms of the new
financial liabilities are substantially different from the existing financial liabilities, terminated for recognized
the existing financial liabilities and at the same time recognize the new financial liabilities. If the financial
liability is terminated for recognized in whole or in part, the difference between the carrying amount of the part
that terminated for recognized and the consideration paid (including the transferred non-cash assets or the
assumed new financial liabilities) is included in current profits and losses.
(7) 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.
33
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024
(Unless other wise specified, RMB for record in the Statement)
(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.
12. Inventory
Inventories of the Company principally include raw materials, stock goods; work in process, self-made semi-
finished product, materials consigned to precede, low-value consumption goods, goods in transit, goods in
process, mould and contract performance costs.
Perpetual inventory system is applicable to inventories. For daily calculation, standard price is adopted for raw
materials, low-value consumption goods and stock goods. Switch-back cost of the current month is adjusted
by distribution price difference at the end of the month, the dispatched goods will share the cost differences of
inventory while in settlement the business income; and low-value consumption goods is carried forward at
once when being applied for use and the mould shall be amortized within one year after receipt.
Inventory at period-end is valued by the Lower-of-value between the cost and net realizable value.The
provision for inventory depreciation shall be drawn from the difference between the book cost of a single
inventory item and its net realizable value, and the provision for inventory depreciation shall be recorded into
the current profit and loss.
13. 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
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.
14. Contract cost
(1) The method of determining the amount of assets related to the contract cost
34
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024
(Unless other wise specified, RMB for record in the Statement)
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.
15.Long-term equity investment
Long-term equity investment of the Company is mainly about investment in subsidiary, investment in associates
and investment in joint-ventures.
For long-term equity investments acquired through business combination under common control, the initial
investment cost shall be the acquirer’s share of the carrying amount of net assets of the acquiree as of the
combination date as reflected in the consolidated financial statement of the ultimate controller. If the carrying
amount of net assets of the acquiree as of the combination date is negative, the investment cost of long-term
equity investment shall be zero. For long-term equity investment acquired through business combination not
under common control, the initial investment cost shall be the combination cost.
Excluding the long-term equity investment acquired through business combination, there is also a king of long-
term equity investment acquired through cash payment, for which the actual payment for the purchase shall be
35
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024
(Unless other wise specified, RMB for record in the Statement)
investment cost; If Long-term equity investments are acquired by issuing equity securities, fair value of issuing
equity investment shall be investment cost; for Long-term equity investments which are invested by investors,
the agreed price in investment contract or agreement shall be investment cost; and for long-term equity
investment which is acquired through debt reorganization and non-monetary assets exchange, regulations of
relevant accounting standards shall be referred to for confirming investment cost.
The Company adopts cost method for investment in subsidiaries, makes calculation for investments in joint-
ventures and associates by equity method.
When calculated by cost method, long-term equity investment is priced according to its investment cost, and
cost of the investment is adjusted when making additional investment or writing off investment; When
calculated by equity method, current investment gains and losses represent the proportion of the net gains and
losses realized by the invested unit in current year attributable to or undertaken by the investor. When the
Company is believed to enjoy proportion of net gains and losses of invested unit, gains and losses attributable
to the Company according to its shareholding ratio is to computer out according to the accounting policy and
accounting period of the Company, on the basis of the fair value of various recognizable assets of the invested
unit as at the date of obtaining of the investment, after offset of gains and losses arising from internal
transactions with associates and joint-ventures, and finally to make confirmation after adjustment of net profit
of the invested unit. Confirmation on gains and losses from the long-term equity investment in associates and
joint-ventures held by the Company prior to the first execution day, could only stand up with the precedent
condition that debit balance of equity investment straightly amortized according to its original remaining term
has already been deducted, if the aforementioned balance relating to the investment do exist.
In case that investor loses joint control or significant influence over investee due to disposal of part equity
interest investment, the remaining equity interest shall be calculated according to Accounting Standards for
Business Enterprise No.22-Recognition and Measurement of Financial Instrument. Difference between the fair
value of the remaining equity interest as of the date when loss of joint control or significant influence and the
carrying value is included in current gains and losses. Other comprehensive income recognized in respect of
the original equity interest investment under equity method should be treated according to the same basis which
the investee adopts to directly dispose the relevant assets or liabilities when ceasing adoption of equity method
calculation; and also switches to cost method for calculating the long-term equity investments which entitles
the Company to have conduct control over the invested units due to its additional investments; and switches to
equity method for calculating the long-term equity investments which entitles the Company to conduct
common control or significant influence, while no control over the invested units due to its additional
investments, or the long-term equity investments which entitles the Company with no control over the invested
units any longer while with common control or significant influence.
When disposing long-term equity investment, the balance between it carrying value and effective price for
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
16. 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
36
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024
(Unless other wise specified, RMB for record in the Statement)
utilization state.
Consequent measurement of investment estate shall be measured by cost method. Depreciation is provided
with average service life method pursuant to the predicted service life and net rate of salvage value. The
predicted service life and net rate of salvage value and annual depreciation are listed as follows:
Predicted rate of salvage Depreciation rate per
Category Depreciation term(Year)
value (%) annual (%)
House and buildings 30-40 years 4%-5% 2.375%-3.20%
When investment real estate turns to be used by holders, it shall switch to fixed assets or intangible assets
commencing from the date of such turning. And when self-used real estate turns to be leased out for rental or
additional capital, the fixed assets or intangible assets shall switch to investment real estate commencing from
the date of such turning. In situation of switch, the carrying value before the switch shall be deemed as the
credit value after the switch.
When investment real estate is disposed, or out of utilization forever and no economic benefit would be
predicted to obtain through the disposal, the Company shall terminate recognition of such investment real
estate. The amount of income from disposal, transfer, discarding as scrap or damage of investment real estate
after deducting the asset’ s carrying value and relevant taxation shall be written into current gains and losses.
17.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
37
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024
(Unless other wise specified, RMB for record in the Statement)
while continuing to use. It adopts average service life method for withdrawing depreciation which is treated
respectively as cost or current expense of relevant assets according to purpose of use. The depreciation term,
predicted rate of salvage value and depreciation rate applied to fixed assets of the Company are as follows:
Predicted rate of salvage Depreciation rate per
No. Category Depreciation term
value year
1 House and buildings 30-40 years 4%-5% 2.375%-3.20%
2 Machinery equipment 10-14 years 4%-5% 6.786%-9.60%
3 Transport equipment 5-12 years 4%-5% 7.92%-19.20%
4 Other equipment 8-12 years 4%-5% 7.92%-12.00%
End of each year, the Company makes re-examination on predicted service life, predicted rate of salvage value
and depreciation method at each year-end. Any change will be treated as accounting estimation change.
18. 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.
19. 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.
20. 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-term leases of less than one year without
38
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024
(Unless other wise specified, RMB for record in the Statement)
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.
21. Intangible assets
(1) Valuation method, service life and impairment test
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 Company analyzes and judges the service life of intangible assets when acquiring them. Intangible assets
with definite service life, such as land use rights, are amortized by the straight-line method during the service
life from the time when the intangible assets are available for use until they are no longer recognized as
intangible assets. Other intangible assets shall be amortized according to the service life stipulated in the
contract or law. Intangible assets with uncertain service life shall not be amortized. Intangible assets developed
by the Company shall be generally amortized on an average of 3-5 years according to the benefit period of the
results of the project recognized in advance.
The service life and amortization method of intangible assets with limited service life shall be reviewed at the
end of the year. If the estimated service life and amortization method of intangible assets are different from
those previously estimated, the amortization period and amortization method shall be changed. The service life
of intangible assets with uncertain service life shall be rechecked. If there is evidence that their service life is
limited, estimate their service life and treat them as intangible assets with limited service life. If there is any
change after the recheck, it will be regarded as the change of accounting estimate.
(2) Collection scope of R&D expenditure and related accounting treatment methods
The Company's R&D expenditure is directly related to the Company's R&D activities, including R&D staff
salaries, direct input expenses, depreciation expenses and other expenses.
The R&D expenditure of the Company is divided into research stage expenditure and development stage
expenditure according to its nature and whether there is great uncertainty in the final formation of intangible
assets from R&D activities. Research stage expenditure is included in the current profits and losses when it
occurs; Development stage expenditure is recognized as intangible assets if it meets the following conditions
at the same time: (1) It is technically feasible to complete the intangible assets so that they can be used or sold;
(2) It has the intention to complete the intangible assets and use or sell them; (3) The products produced by
using the intangible assets exist in the market or the intangible assets themselves exist in the market; (4) It has
sufficient technical, financial and other resources to support the development of the intangible assets, and has
the ability to use or sell the intangible assets; (5) Expenditure attributable to the development stage of the
intangible assets can be reliably measured.
-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.
39
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024
(Unless other wise specified, RMB for record in the Statement)
22. Impairment of long-term assets
As at each balance sheet date, the Company has inspection on fixed assets, construction in process and
intangible assets with limited service life. When the following indications appear, assets may be impaired, and
the Company would have impairment test. As for goodwill and intangible assets which have uncertain service
life, no matter there is impairment or not, impairment test shall be conducted at the end of every year. If it is
hard to make test on recoverable amount of single asset, test is expected to make on the basis of the assets
group or assets group portfolio where such asset belongs to.
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
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.
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.Long-term deferred expenses
40
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024
(Unless other wise specified, RMB for record in the Statement)
The company's long-term deferred expenses refer to the expenses that have been paid, but should be borne by
the current period and future periods with an amortization period of more than one year (excluding one year),
and these expenses are amortized evenly during the benefit period. If the long-term deferred expense item
cannot benefit the future accounting period, all the amortized value of the item that has not been amortized
will be transferred into the current profit and loss.
26. 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.
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.
27.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.
28.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
41
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024
(Unless other wise specified, RMB for record in the Statement)
the enterprise; the amount of the obligation is reliably measurable.
29. Special reserve
The work safety expense extracted according to the regulations will be included in the cost of related products
or the current profit and loss, and also included in the special reserve; When used, it will be treated separately
according to whether fixed assets are formed or not: if it is an expense expenditure, the special reserve will be
directly offset; If the fixed assets are formed, the expenses incurred shall be collected, and the fixed assets shall
be confirmed when the predetermined usable state is reached, and at the same time, the equivalent special
reserve shall be offset and the equivalent accumulated depreciation shall be confirmed.
30. 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 recognized when the
customer obtains control of the relevant goods or services.
If the contract contains two or more performance obligations, the Company will allocate the transaction price
to each individual performance obligation according to the relative proportion of the stand-alone selling price
of the goods or services promised by each individual performance obligation on the date of the contract. The
revenue is measured according to the transaction price of each individual performance obligation.
The transaction price is the amount of consideration that the Company expects to be entitled to receive due to
the transfer of goods or services to customers, excluding payments on behalf of third parties. The transaction
price confirmed by the Company does not exceed the amount at which the cumulatively recognized revenue
will most likely not to undergo a significant switch back when the relevant uncertainty is eliminated. The
money expected to be returned to the customer will be regarded as a return liability and not included in the
transaction price. If there is a significant financing component in the contract, the Company shall determine
the transaction price based on the amount payable on the assumption that the customer pays in cash when
obtaining the control of the goods or services. The difference between the transaction price and the contract
consideration shall be amortized by the effective interest method during the contract period. On the starting
date of the contract, if the Company expects that the interval between the customer's acquisition of control of
the goods or services and the customer's payment of the price doesn’t exceed one year, the significant financing
components in the contract shall be ruled out.
When meeting one of the following conditions, the Company is to perform its performance obligations within
a certain period of time, otherwise, it is to perform its performance obligations at a certain point in time:
1) The customer obtains and consumes the economic benefits brought by the Company's performance at the
same time as the Company's performance;
2) Customers can control the products under construction during the performance of the Company;
3) The goods produced by the Company during the performance of the contract have irreplaceable uses, and
the Company has the right to collect payment for the accumulated performance part of the contract during the
entire contract period.
For performance obligations performed within a certain period of time, the Company recognizes revenue in
42
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024
(Unless other wise specified, RMB for record in the Statement)
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
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.
31. 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.
32. 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
43
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024
(Unless other wise specified, RMB for record in the Statement)
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.
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. For the confirmed
deferred income tax assets.
33.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-term 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.
When the Company becomes the lessor of a lease contract, the lease is divided into operating lease and finance
44
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024
(Unless other wise specified, RMB for record in the Statement)
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.
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 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
45
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024
(Unless other wise specified, RMB for record in the Statement)
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.
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.
46
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024
(Unless other wise specified, RMB for record in the Statement)
(1) Change of significant accounting policy: N/A
(2) Change of significant accounting estimates: N/A
IV. Taxa tion
1. Major taxes and tax rates
Tax (expenses) Tax (expenses) base Tax (expenses) rate
VAT Income from sales of goods and from processing 13%、9%、6%、5%、3%
Urban maintenance and
Turnover tax 5%或 7%
construction tax
Education surcharge Turnover tax 3%
Local education
Turnover tax 2%
surcharge
Corporate income tax Taxable income 25%/ See the table below
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%
Mianyang Meiling Refrigeration Co., Ltd. 15%
Sichuan Hongmei Intelligent Technology 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. 20%
Anhui Tuoxing Technology Co., Ltd. 20%
Guangzhou Changhong Trading Co., Ltd. 20%
Hefei Meiling Wulian Technology Co., Ltd 15%
CH-Meiling International (Philippines) Inc. 20%
Changhong Ruba Trading Company (Private) Limited 29%
CHANGHONG MEILING ELECTRIC INDONESIA,PT 22%
2. Preferential tax
(1) On November 30, 2023, the Company passed the high-tech enterprise certification and obtained the high-
tech enterprise certificate numbered GR2020340006385, and shall enjoy the national high-tech enterprise
47
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024
(Unless other wise specified, RMB for record in the Statement)
income tax rate of 15%, which is valid for three years.
(2) On October 16, 2023, the subsidiary Zhongke Meiling Cryogenic Technology Co., Ltd. obtained the high-
tech enterprise certificate numbered GR202334003036 approved by the Anhui Provincial Department of
Science and Technology, the Anhui Provincial Department of Finance, and the Anhui Provincial Taxation
Bureau of the State Administration of Taxation, and shall enjoy the 15% enterprise income tax rate of the
national high-tech enterprise, which is valid for three years.
(3) On December 28, 2023, the subsidiary Zhongshan Changhong Electric Appliance Co., Ltd. obtained a high-
tech enterprise certificate with a certificate number of GR202344012950 approved by the Guangdong
Provincial Department of Science and Technology, the Guangdong Provincial Department of Finance and the
Guangdong Provincial Taxation Bureau of the State Administration of Taxation, and shall enjoy a national
enterprise income tax rate of 15% for high-tech enterprises, which is valid for three years.
(4) 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.
(5) 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.
(6) The subsidiary Guangdong Changhong Meiling Ridian Technology Co., Ltd. has passed the qualification
of high-tech enterprise certification on 22 December 2022, 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 22 December 2022, 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 18 September 2021, 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 4 November 2022, 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., has passed the qualification of high-tech
enterprise certification on 29 November 2022, and enjoys 15% income tax rate for national payroll technology
enterprise for three years term.
(11) The subsidiaries Anhui Tuoxing Technology Co., Ltd., Guangzhou Changhong Trading Co., Ltd. and
48
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024
(Unless other wise specified, RMB for record in the Statement)
Hebei Hongmao Daily Electrical Appliance Technology Co., Ltd., in accordance with the announcement of the
Ministry of Finance and the State Administration of Taxation on further supporting the development of small
and micro enterprises and individual industrial and commercial households (Announcement No. 12 of 2023 of
the Ministry of Finance and the State Administration of Taxation), calculate the taxable income of small and
low-profit enterprises at a reduced rate of 25% and pay enterprise income tax at a rate of 20%, which will be
extended to December 31, 2027.
(12) The subsidiary Hebei Meiling Wulian 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
enterprises for three years term.
V. Notes to the major ite ms in th e consolida ted financia l statemen ts
With respect to the financial statements’ figures disclosed below, unless otherwise specified, “period-beginning”
refers to Jan. 1, 2024; “period-end” refers to Jun. 30, 2024; “Current Period” refers to Jan. 1 to Jun. 30, 2023;
“the last period” refers to Jan. 1 to Jun. 30, 2023; the currency is RMB.
1. Monetary fund
Item Ending balance Beginning balance
Cash 30,445.27 12,727.56
Bank deposit 4,688,899,674.43 4,160,096,314.60
Other monetary fund 387,433,262.65 425,569,359.11
Interest receivable on deposit 3,973,325,909.43 4,255,007,124.44
Total 9,049,689,291.78 8,840,685,525.71
Including: total amount deposited in overseas 33,332,025.33 25,902,580.15
2. Tradable financial assets
Item Ending Balance Beginning Balance
Financial assets measured at fair value and whose changes are included
1,091,019,993.13 39,236,447.63
in current gains/losses
Including: Derivative financial assets 8,754,120.65 39,236,447.63
Principal and interest of wealth management products 1,082,265,872.48
Transactional financial assets in this period are caused by forward foreign exchange contracts, unconfirmed
firm commitment evaluation and new wealth management products.
3. Note receivable
(1) Category of note receivable
Item Ending Balance Beginning Balance
Bank acceptance 228,500.00
Trade acceptance 38,674.50
49
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024
(Unless other wise specified, RMB for record in the Statement)
Item Ending Balance Beginning Balance
Total 267,174.50
(2) By accrual of bad debt provision
Ending Balance
Category Book balance Bad debt provision
Book value
Amount Ratio (%) Amount Ratio (%)
With bad debt provision
accrual on single item
267,174.50 100.00 267,174.50
Including: Bank acceptance 228,500.00 85.52 228,500.00
Trade acceptance 38,674.50 14.48 38,674.50
Total 267,174.50 100.00 267,174.50
1) Note receivable withdrawal bad debt provision on single item
Beginning balance Ending balance
Bad Bad
Name debt debt Provision
Book balance Book balance Provision reason
provisio provisi ratio (%)
n on
Minimal risk, holding maturity
Bank acceptance 228,500.00
acceptance
Endorsement is not due，
Trade acceptance 38,674.50 Minimal risk.
Total 267,174.50 — —
(2) Bad debt provision of note receivable that has been accrued, withdrawn, and reversed in the current period
(3) Notes receivable that have been pledged at the end of the year: N/A
(4) Notes endorsement or discount and undue on balance sheet date :N/A
(5) Notes receivable not yet due: N/A
(6) Notes receivable actually written off this year: N/A
4. Account receivable
(1) Category of account receivable by aging
Account age Ending Balance Beginning Balance
Within 1 year（Including 1 year） 2,184,385,432.32 1,629,505,172.78
Including：
Within 3 months (3 months included) 1,931,692,500.62 1,441,654,287.27
More than 3 months and less than 6 months (6
182,123,877.62 140,150,202.58
months included)
Over 6 months and within one year (One year
70,569,054.08 47,700,682.93
included)
Over one year - within 2 years (2 years included) 81,064,638.11 131,340,766.08
Over 2 years - within 3 years (3 years included) 130,905,000.64 154,167,214.15
Over 3 years 93,752,969.30 53,619,387.00
50
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024
(Unless other wise specified, RMB for record in the Statement)
Account age Ending Balance Beginning Balance
Total
2,490,108,040.37 1,968,632,540.01
(2) Category of account receivable by bad debt accrual
Ending balance
Category Book balance Bad debt provision
Book value
Amount Ratio (%) Amount Ratio (%)
Account receivable that withdrawal 178,714,212.
bad debt provision by single item
957,605,494.67 38.46 18.66 778,891,281.96
71
Including: current payment with 136,438,304.
683,176,319.68 27.44 19.97 546,738,014.98
related party 70
Account receivable with letter of
227,542,803.55 9.14 227,542,803.55
credit
Account receivable with single minor 42,275,908.0
amount but withdrawal single item 46,886,371.44 1.88 90.17 4,610,463.43
1
bad debt provision
Account receivable withdrawal bad 1,532,502,545. 144,021,478.
debt provision by portfolio
61.54 9.40 1,388,481,066.86
70 84
Including: account receivable of 41,990,000.2
203,565,098.94 8.17 20.63 161,575,098.68
engineering customers 6
Receivables other than engineering 1,328,937,446. 102,031,478.
53.37 7.68 1,226,905,968.18
customers 76 58
2,490,108,040. 322,735,691.
Total 100.00 12.96 2,167,372,348.82
37 55
Continued
Beginning balance
Category Book balance Bad debt provision
Book value
Amount Ratio (%) Amount Ratio (%)
Account receivable that withdrawal
682,942,277.48 34.69 195,578,324.84 28.64 487,363,952.64
bad debt provision by single item
Including: current payment with
545,656,729.90 27.72 154,606,151.98 28.33 391,050,577.92
related party
Account receivable with letter of
83,951,301.01 4.26 83,951,301.01
credit
Account receivable with single minor
amount but withdrawal single item 53,334,246.57 2.71 40,972,172.86 76.82 12,362,073.71
bad debt provision
Account receivable withdrawal bad 1,146,342,936.
1,285,690,262.53 65.31 139,347,326.11 10.84
debt provision by portfolio 42
Including: account receivable of
212,621,463.45 10.80 44,910,916.50 21.12 167,710,546.95
engineering customers
Receivables other than engineering
1,073,068,799.08 54.51 94,436,409.61 8.80 978,632,389.47
customers
1,633,706,889.
Total 1,968,632,540.01 100.00 334,925,650.95 17.01
06
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, 114 clients involved.
2) Account receivable withdrawal bad debt provision by portfolio
A.Account receivable of engineering customers
51
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024
(Unless other wise specified, RMB for record in the Statement)
Ending balance
Account age
Book balance Bad debt provision Provision ratio (%)
Within 3 months (3 months included) 33,139,378.12
More than 3 months and less than 6 months (6
months included)
14,650,060.23
Over 6 months and within one year (One year
included)
52,784,102.22
Over one year - within 2 years (2 years included) 48,455,733.79 9,691,146.76 20.00
Over 2 years - within 3 years (3 years included) 44,473,942.16 22,236,971.08 50.00
Over 3 years 10,061,882.42 10,061,882.42 100.00
Total 203,565,098.94 41,990,000.26 —
Continued
Beginning balance
Account age
Book balance Bad debt provision Provision ratio (%)
Within 3 months (3 months included) 33,502,386.39
More than 3 months and less than 6 months (6
29,638,184.67
months included)
Over 6 months and within one year (One year
29,724,507.75
included)
Over one year - within 2 years (2 years included) 71,526,399.70 14,305,279.94 20.00
Over 2 years - within 3 years (3 years included) 35,248,696.77 17,624,348.39 50.00
Over 3 years 12,981,288.17 12,981,288.17 100.00
Total 212,621,463.45 44,910,916.50 —
B.Receivables other than engineering customers
Ending balance
Account age
Book balance Bad debt provision Provision ratio (%)
Within 3 months (3 months included) 1,156,716,570.15 11,567,165.70 1.00
More than 3 months and less than 6 months (6
months included)
68,643,701.60 6,864,370.16 10.00
Over 6 months and within one year (One year
included)
8,285,316.34 1,657,063.27 20.00
Over one year - within 2 years (2 years included) 4,719,357.34 2,359,678.67 50.00
Over 2 years - within 3 years (3 years included) 54,946,502.73 43,957,202.18 80.00
Over 3 years 35,625,998.60 35,625,998.60 100.00
Total 1,328,937,446.76 102,031,478.58 —
Continued
Beginning balance
Account age
Book balance Bad debt provision Provision ratio (%)
Within 3 months (3 months included) 923,822,329.93 9,238,223.30 1.00
More than 3 months and less than 6 months (6
41,778,451.31 4,177,845.13 10.00
months included)
52
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024
(Unless other wise specified, RMB for record in the Statement)
Beginning balance
Account age
Book balance Bad debt provision Provision ratio (%)
Over 6 months and within one year (One year
9,463,055.00 1,892,611.00 20.00
included)
Over one year - within 2 years (2 years included) 2,723,777.86 1,361,888.93 50.00
Over 2 years - within 3 years (3 years included) 87,576,718.61 70,061,374.88 80.00
Over 3 years 7,704,466.37 7,704,466.37 100.00
Total 1,073,068,799.08 94,436,409.61 —
(3) Bad debt provision of accounts receivable in the current period
Changes this year
Beginning
Category Withdrawal or Resale or Other Ending Balance
balance Accrual
reversal write-off decreases
Bad debt
provision
334,925,650.95 8,380,959.36 20,809,004.37 238,085.61 322,735,691.55
Total 334,925,650.95 8,380,959.36 20,809,004.37 238,085.61 322,735,691.55
(4) Provision for bad debts of accounts receivable actually recovered or reversed in the current period
Item Written-off amount
Provision for bad debts of accounts receivable recovered or
20,809,004.37
reversed
The important amount of bad debt provision recovered or reversed in the current period thereinto:
The basis for
determining the
Amount
Reason of Method of proportion of
Name of the organization recovered or
recovery recovery provision for bad
reversed
debts and its
reasonableness
Customer
Sichuan Zhiyijia Network Technology Payment
20,073,699.40 payment
Co., Ltd recovered
collection
Total 20,073,699.40 — — —
(5) Account receivable actually written-off in the Current period: N/A.
(6) Top five receivables collected by arrears party amounting to 1,047,848,385.72 yuan in total, accounted
for 41.9% of the receivables of current year-end, the bad debt provision accrual correspondingly amounting
to 94,883,259.48yuan at year-end balance.
5. Receivables financing
（1）Classification and listing of receivable financing
Item Ending balance Beginning balance
Bank acceptance 1,600,373,357.87 1,641,858,740.34
Total 1,600,373,357.87 1,641,858,740.34
(2)Receivable financing is classified and listed by bad debt accrual method
53
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024
(Unless other wise specified, RMB for record in the Statement)
Ending balance
Category Book balance Bad debt provision
Book value
Amount Ratio (%) Amount Ratio (%)
Withdrawal bad debt provision by
1,600,373,357.87 100.00 1,600,373,357.87
single item
Including：Bank acceptance 1,600,373,357.87 100.00 1,600,373,357.87
Total 1,600,373,357.87 100.00 1,600,373,357.87
Continued
Beginning balance
Category Book balance Bad debt provision
Book value
Amount Ratio (%) Amount Ratio (%)
Withdrawal bad debt provision by 1,641,858,740.34 1,641,858,740.34
100.00
single item
Including：Bank acceptance 1,641,858,740.34 100.00 1,641,858,740.34
Total 1,641,858,740.34 100.00 1,641,858,740.34
（3）There is no bad debt provision accrued, recovered or reversed in the Current period ;
(4)Financing of receivables that have been pledged at the end of the period
Item Period-end pledged amount
Bank acceptance 743,380,533.32
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 V. 25.
Assets with restricted ownership or use rights.
(5) Notes endorsement or discount and undue on balance sheet date listed in receivables financing at the end
of the period
Amount derecognition at Amount without
Item
period-end derecognition at period-end
Bank acceptance 709,516,249.45
Total 709,516,249.45
6. Accounts paid in advance
(1) Age of account paid in advance
Ending balance Beginning balance
Item
Amount Ratio (%) Amount Ratio (%)
Within one year 25,620,331.26 98.44 43,288,908.76 94.64
1-2 years 118,591.11 0.46 811,122.73 1.77
2-3 years 49,636.02 0.19 707,919.39 1.55
Over 3 years 237,765.33 0.91 930,855.02 2.04
Total 26,026,323.72 100.00 45,738,805.90 100.00
(2) Top 5 of account paid in advance in Ending balaqnce amounting to17,119,020.35yuan, accounted for
65.78% of the account.
7. Other account receivable
54
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024
(Unless other wise specified, RMB for record in the Statement)
Item Ending balance Beginning balance
Other account receivable 80,790,579.55 82,953,808.97
Total 80,790,579.55 82,953,808.97
(1) Category of other account receivable
Nature Book Ending balance Book Beginning balance
Export rebate 49,174,580.49 41,300,752.20
Cash deposit 11,383,392.77 20,927,726.52
Loans of employee’s pretty cash 21,636,865.19 20,970,369.96
Related party not in consolidation statement 789,830.16 619,414.34
Advance money temporary 192,867.60 707,676.06
Other 624,972.15 1,488,175.37
Total 83,802,508.36 86,014,114.45
(2) By account age
Ending balance
Account age Beginning balance
Within 1 year（Including 1 year） 73,549,094.77 74,641,189.07
Including：
Within 3 months (3 months included) 67,976,644.68 60,732,006.02
More than 3 months and less than 6 months (6 1,842,273.09
3,007,738.81
months included)
Over 6 months and within one year (One year 12,066,909.96
2,564,711.28
included)
Over one year - within 2 years (2 years 3,017,092.43
2,198,771.08
included)
Over 2 years - within 3 years (3 years included) 3,344,947.46 2,473,240.42
Over 3 years 4,709,695.05 5,882,592.53
Total 83,802,508.36 86,014,114.45
(3) Category of Other account receivable bad debt reserves
Amount at year-end
Category Book balance Bad debt provision
Book value
Ratio
Amount Amount Ratio (%)
(%)
That withdrawal bad debt provision by
single item 83,631,925.85 99.80 2,935,406.15 3.51 80,696,519.70
In which: other receivables with no major
individual amount but bad debt provision 33,667,515.20 40.18 2,935,406.15 8.72 30,732,109.05
accrued individually
Export rebate 49,174,580.49 58.68 49,174,580.49
Related party funds 789,830.16 0.94 789,830.16
Bad debt provision accrued by portfolio 170,582.51 0.20 76,522.66 44.86 94,059.85
In which: other receivables accrued by
aging portfolio 170,582.51 0.20 76,522.66 44.86 94,059.85
Total 83,802,508.36 100.00 3,011,928.81 3.59 80,790,579.55
55
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024
(Unless other wise specified, RMB for record in the Statement)
Continued
Beginning balance
Category Book balance Bad debt provision
Book value
Amount Ratio (%) Amount Ratio (%)
That withdrawal bad debt provision by
85,698,646.43 99.63 2,945,873.36 3.44 82,752,773.07
single item
In which: other receivables with no major
individual amount but bad debt provision 43,778,479.89 50.90 2,945,873.36 6.73 40,832,606.53
accrued individually
Export rebate 41,300,752.20 48.01 41,300,752.20
Related party funds 619,414.34 0.72 619,414.34
Bad debt provision accrued by portfolio 315,468.02 0.37 114,432.12 36.27 201,035.90
In which: other receivables accrued by
315,468.02 0.37 114,432.12 36.27 201,035.90
aging portfolio
Total 86,014,114.45 100.00 3,060,305.48 3.56 82,953,808.97
1) Accrual of bad debt provision for other receivables
First stage Second stage Third stage
Expected Expected credit loss
Bad debt provision Expected credit loss Total
credit loss in for the whole duration
for the whole duration
next 12 (credit impairment has
(no credit impairment)
months occurred)
Balance as at 1 Jan. 2024 181.49 58,484.21 3,001,639.78 3,060,305.48
Book balance of other account
receivable in Current period as at — — — —
1 Jan. 2024
--Transfer to the second stage
-- Transfer to the third stage
-- Reversal to the second stage
-- Reversal to the first stage 10,467.21 -10,467.21
Provision in Current Year 530.26 530.26
Reversal in Current Year 358.89 48,017.00 48,375.89
Conversion in Current Year
Write off in Current Year
Other change -531.04 -531.04
Balance as at 30 June. 2024 10,289.03 3,001,639.78 3,011,928.81
（4）Bad debt provision for other receivables accrued, recovered or reversed in the current period
Amount of change this period
Beginning
Category Ending balance
balance Recovery or Write-off or
Accrual Other
reversal cancellation
Bad debt
provision
3,060,305.48 530.26 48,375.89 -531.04 3,011,928.81
Total 3,060,305.48 530.26 48,375.89 -531.04 3,011,928.81
56
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024
(Unless other wise specified, RMB for record in the Statement)
（5）Other account receivable actually written-off in Current period: N/A
(6) Top 5 other receivables collected by arrears party at balance of period-end
Proportion in total Bad debt
other receivables provision
Name Nature Ending balance Account age
ending balance Ending
(%) balance
Unit I Export rebate 49,174,580.49 Within 1 year 58.68
Within 1 year, 1-2
Loans of employee’s
Unit II 2,730,438.36 years，Over 2-3 3.26
pretty cash
years
Unit III Cash deposit 1,689,512.96 Within 1 year 2.02
Loans of employee’s
Unit IV 1,497,437.88 1-2 years 1.78
pretty cash
Loans of employee’s
Unit V 1,368,000.00 Within 1 year 1.63
pretty cash
Total 56,459,969.69 67.37
（7）There are no other receivables reported due to centralized management of funds.
8. Inventories
(1) Classification of inventories
Ending Amount
Inventory price decline
Item provision/contract
Book balance Book value
performance cost
impairment provision
Raw materials 210,188,862.32 4,227,320.88 205,961,541.44
Stock commodities 1,829,456,156.17 62,088,588.75 1,767,367,567.42
Low value consumable articles 1,125,814.10 99,237.62 1,026,576.48
Goods in transit 1,508,762,043.38 8,188,477.80 1,500,573,565.58
Goods-in-process 11,081,108.74 11,081,108.74
Contract performance cost 20,015,002.85 20,015,002.85
Deferred expense for mould 64,128,045.06 64,128,045.06
Total 3,644,757,032.62 74,603,625.05 3,570,153,407.57
Continued
Beginning amount
Inventory price decline
Item provision/contract
Book balance Book value
performance cost
impairment provision
Raw materials 150,806,222.67 4,061,217.23 146,745,005.44
Stock commodities 1,216,300,557.72 60,027,642.16 1,156,272,915.56
Low value consumable articles 3,141,564.20 143,306.82 2,998,257.38
Goods in transit 641,198,998.83 7,934,263.70 633,264,735.13
Goods-in-process 7,337,268.01 7,337,268.01
Contract performance cost 28,988,664.67 28,988,664.67
Deferred expense for mould 47,131,566.78 47,131,566.78
57
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024
(Unless other wise specified, RMB for record in the Statement)
Beginning amount
Inventory price decline
Item provision/contract
Book balance Book value
performance cost
impairment provision
Total 2,094,904,842.88 72,166,429.91 2,022,738,412.97
(2) Provision for inventory depreciation and contract performance cost impairment provision
Increase this period Decrease this period
Amount at period- Amount at
Item Reversal or
begin Accrual Other Other period-end
reselling
Raw materials 4,061,217.23 1,440,622.58 1,274,518.93 4,227,320.88
Stock
60,027,642.16 22,159,109.58 20,082,201.00 15,961.99 62,088,588.75
commodities
Goods in transit 7,934,263.70 4,510,597.63 4,256,383.53 8,188,477.80
Low value
consumable 143,306.82 2,634.77 46,703.97 99,237.62
articles
Total 72,166,429.91
28,112,964.56 25,659,807.43 15,961.99 74,603,625.05
(3) Accrual for inventory falling price reserves
Reasons for the reversal or
Item Specific basis for determining of net realizable value
reselling in Current Year
Cost is higher than net realizable value (The processed products are
Raw materials For production
decline)
Stock Cost is higher than net realizable value (The market price at period-end
For sale
commodities fell)
Cost is higher than net realizable value (The market price at period-end
Goods in transit For sale
fell)
Low value
consumable Cost is higher than net realizable value Already used
articles
Contract Engineering construction Cost is higher than net realizable value (The
Already used
performance cost processed products are decline)
9. Contract assets
(1) Contract assets
Ending balance Beginning balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Warranty 10,769,071.52 575,921.40 10,193,150.12 13,879,087.90 617,397.28 13,261,690.62
Total 10,769,071.52 575,921.40 10,193,150.12 13,879,087.90 617,397.28 13,261,690.62
(2) Contract assets are classified and listed according to the bad debt provision method
Ending balance
Category Book balance Bad debt provision
Book value
Amount Ratio (%) Amount Ratio (%)
Withdrawal bad debt provision
by single
10,769,071.52 100.00 575,921.40 5.35 10,193,150.12
Total 10,769,071.52 100.00 575,921.40 5.35 10,193,150.12
Continued
58
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024
(Unless other wise specified, RMB for record in the Statement)
Beginning balance
Category Book balance Bad debt provision
Book value
Amount Ratio (%) Amount Ratio (%)
Withdrawal bad debt provision
13,879,087.90 100.00 4.45 13,261,690.62
by single 617,397.28
Total 13,879,087.90 100.00 4.45 13,261,690.62
617,397.28
1）Bad debt provisions are made individually for contract assets
Beginning balance Ending balance
Name
Bad debt Bad debt Ratio
Book balance Book balance Reason
provision provision (%)
Provision for Other party is
bad debts of
13,879,087.90 617,397.28 10,769,071.52 575,921.40 5.35 expected to be at
contract ass
ets
risk of default
Total 13,879,087.90 617,397.28 10,769,071.52 —
575,921.40 —
（3）The provision, recovery or transfer of bad debt provisions for contract assets this year
project
Item Provision for this Transferred this year Write -off this year Reason
Period
Provision for bad debts of c
ontract assets
94,052.32 135,528.20
Total 94,052.32 135,528.20 —
10. Non-current assets coming due within one year
Item Ending balance Beginning balance
Creditor's right investment due within
122,294,027.78
one year
Total 122,294,027.78
（1）Creditor's right investment due within one year
1）Creditor's right investment due within one year
Ending balance Beginning balance
Impair Impair
Name ment ment
Book balance Book value Book balance Book value
provisi provisi
on on
large deposit
certificates 122,294,027.78 122,294,027.78
Total 122,294,027.78 122,294,027.78
2）.Creditor's right investment due within 1 year at the end of the period: N/A
11.Other current asset
Item Ending balance Beginning balance
Held to maturity fixed deposits 301,394,444.44
59
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024
(Unless other wise specified, RMB for record in the Statement)
Item Ending balance Beginning balance
Held to maturity large deposit certificates 100,261,944.44
VAT to be deducted 204,277,714.77 193,911,165.30
Advance payment of income tax 25,702,879.66 29,599,620.50
Contract acquisition cost 43,560.92 701,222.80
Local sales tax in Pakistan 740,153.42 511,584.19
.Amortization expense 1,545,198.17 494,612.19
Other 213,164.70 201,678.09
Total 634,179,060.52 225,419,883.07
12.Creditors' right investment
（1）Other creditor's right investment
Ending balance Beginning balance
Impai Impai
Item rment rment
Book balance Book value Book balance Book value
provis provis
ion ion
large deposit
certificates
980,754,190.44 980,754,190.44 420,537,485.54 420,537,485.54
Fixed deposit 250,783,680.56 250,783,680.56
Total 1,231,537,871.00 1,231,537,871.00 420,537,485.54 420,537,485.54
（2）Other important creditor's right investment
Ending balance
Item
Face value Interest rate Actual rate Date of expiring
large deposit certificates 100,000,000.00 3.20% 3.20% 2026/1/31
large deposit certificates 80,000,000.00 3.35% 3.35% 2026/3/28
large deposit certificates 150,000,000.00 3.15% 3.15% 2027/5/16
Fixed deposit 250,000,000.00 3.05% 3.05% 2027/5/24
large deposit certificates 100,000,000.00 2.60% 2.60% 2027/6/20
Total 680,000,000.00 — — —
Continued
Beginning balance
Item
Face value Interest rate Actual rate Date of expiring
large deposit certificates 100,000,000.00 3.20% 3.20% 2026/1/31
large deposit certificates 80,000,000.00 3.35% 3.35% 2026/3/28
large deposit certificates 30,000,000.00 3.20% 3.20% 2026/3/16
large deposit certificates 30,000,000.00 3.30% 3.30% 2026/5/31
60
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024
(Unless other wise specified, RMB for record in the Statement)
Beginning balance
Item
Face value Interest rate Actual rate Date of expiring
large deposit certificates 50,000,000.00 3.30% 3.30% 2026/6/14
large deposit certificates 50,000,000.00 3.10% 3.10% 2026/6/26
large deposit certificates 20,000,000.00 3.15% 3.15% 2026/7/31
large deposit certificates 25,000,000.00 3.25% 3.25% 2025/8/30
large deposit certificates 25,000,000.00 3.30% 3.30% 2025/8/30
Total 410,000,000.00 — — —
61
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024
(Unless other wise specified, RMB for record in the Statement)
13. Long-term equity investment
Changes in Current period Bala
nce
Impairm at
ent Other
Additio Investment compre Other Declaration of Provision
year-
Beginning provisio Disinv
Invested enterprise
balance n begin- nal profit and loss hensive change cash for Ending balance end
estmen Other of
year investm confirmed by income s of dividends or impairme
t
balance ent equity method adjustm equity profits nt impa
ent irme
nt
Associated companies
1.Hefei Xingmei Assets Management
14,139,256.78 45,466.71 14,184,723.49
Co., Ltd.
2.Sichuan Zhiyijia Network Technology
68,854,162.70 5,998,850.59 5,097,740.91 69,755,272.38
Co., Ltd. note1
3. Sichuan Tianyou Guigu Technology Co., 2,948,859.23 -81,933.93 2,866,925.30
Ltd.note2
4. Chengdu Guigu Environmental Tech. 8,756,262.50 -887,937.72 7,868,324.78
Co., Ltd.note3
5.ChanghongRuba
ElectricCompany(Private)Ltd. note4
6. Hefei Xinmei Solar Energy Technology 2,202,871.20 2,202,871.20
Co., Ltd. note5
7. .Sichuan Hongyun Venture Investment
18,047,270.54 114,051.45 18,161,321.99
Partnership（LP）note6
Total 112,745,811.75 7,391,368.30 7,300,612.11 112,836,567.94
62
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024
(Unless other wise 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 yuanwith shareholding proportion of 30% and Sichuan Changhong Electric
Co., LTD made contribution of 35 million yuanwith 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: 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 3: 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 4: 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
63
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024
(Unless other wise specified, RMB for record in the Statement)
60%.
Note 5: Hefei Xinmeitai 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.
Note 6.On May 5, 2023, the Company signed a partnership agreement with the controlling shareholder
Sichuan Changhong Electric Co.,Ltd., Sichuan Changhong Electronic (Group) Co., Ltd. and Sichuan
Hongyun Venture Equity Investment Management Co., Ltd. to jointly establish Sichuan Hongyun
Venture Capital Partnership (Limited Partnership) with a registered capital of RMB 148 million, of
which RMB 45 million was subscribed by the Company, with a shareholding ratio of 304.1%. This year,
the Company actually contributed RMB 18 million.
14. Other non-current financial assets
Item Ending balance Beginning balance
Sichuan Changhong Group Finance Co., Ltd. 554,145,436.29 554,145,436.29
Sichuan Hongyun New-Generation Information
technology Venture Capital Fund Partnership (limited 36,507,860.19 36,507,860.19
partnership)
Changhong Group Sichuan Shenwan Hongyuan Strategic
New Industrial Parent Fund Partnership (limited 68,686,219.00 68,686,219.00
partnership)
Huishang Bank Co., Ltd. 14,800,000.00 14,800,000.00
Total 674,139,515.48 674,139,515.48
15. Investment real estate
(1) Investment real estate measured at costs
Item House and buildings Total
I.Original book value
1.Beginning balance 62,361,143.47 62,361,143.47
2.Increase in this year 16,612.44 16,612.44
（1）Other 16,612.44 16,612.44
3.Decrease in this year
4.Ending balance 62,377,755.91 62,377,755.91
II.Accumulated depreciation and accumulated
amortization
1.Beginning balance 11,440,655.76 11,440,655.76
2.Increase in this year 988,995.63 988,995.63
（1）Withdrawal or amortization 988,995.63 988,995.63
3.Decrease in this year
4.Ending balaqnce 12,429,651.39 12,429,651.39
III.Impairment provision
IV.Book value
64
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024
(Unless other wise specified, RMB for record in the Statement)
Item House and buildings Total
1.Ending book value 49,948,104.52 49,948,104.52
2. Opening book value 50,920,487.71 50,920,487.71
(2) No investment real estate measured by fair value at year-end.
(3) Investment real estate without property certification held
Reasons for failing to complete
Item Book value
property rights certificate
J04workshop 26,125,205.32 Related property rights in procedure
J03workshop 18,069,680.82 Related property rights in procedure
J20 air compressor station workshop 1,290,044.18 Related property rights in procedure
J18 opening and closing office 624,284.91 Related property rights in procedure
Total 46,109,215.23
16.Fixed assets
Item Book value at year-end Book value at year-begin
Fixed assets 2,123,123,749.75 2,104,618,850.52
Liquidation of fixed assets 32,847,524.11 32,293,183.76
Total 2,155,971,273.86 2,136,912,034.28
16.1 Fixed assets
（1） Fixed assets
House and Machinery Transport Other
Item Total
buildings equipment equipment equipment
I.Original book value
1.Beginning balance 1,737,673,105.29 1,842,041,115.75 35,510,533.61 271,253,897.93 3,886,478,652.58
2.Increase in this year 2,069,951.34 113,785,930.98 748,991.47 23,427,206.51 140,032,080.30
(1)Purchase 5,609,968.51 1,590,847.59 7,200,816.10
(2)Construction in progress
transfer-in
1,948,176.61 108,175,962.47 734,305.59 21,793,071.97 132,651,516.64
（3）Other increase 121,774.73 14,685.88 43,286.95 179,747.56
3.Decrease in this year 130,121.94 19,813,175.36 117,578.79 4,043,072.20 24,103,948.29
（1）Dispose or retirement 17,708,252.57 117,578.79 3,774,457.45 21,600,288.81
(2)Construction in progress
transfer-in
2,104,387.40 233,972.85 2,338,360.25
（3）Other Derease 130,121.94 535.39 34,641.90 165,299.23
4.Ending balaqnce 1,739,612,934.69 1,936,013,871.37 36,141,946.29 290,638,032.24 4,002,406,784.59
II.Accumulated depreciation
1.Beginning balance 507,688,570.52 1,114,275,828.03 24,857,123.23 133,926,258.07 1,780,747,779.85
2.Increase in this year 28,021,024.61 72,096,021.50 1,345,744.16 16,096,306.74 117,559,097.01
(1)Accrual 28,021,024.61 72,096,021.50 1,333,204.85 16,043,131.86 117,493,382.82
65
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024
(Unless other wise specified, RMB for record in the Statement)
House and Machinery Transport Other
Item Total
buildings equipment equipment equipment
（2）Other increase 12,539.31 53,174.88 65,714.19
3.Decrease in this year 16,311,354.13 111,699.85 3,710,645.96 20,133,699.94
（1）Dispose or retirement 15,537,011.47 111,699.85 3,559,631.85 19,208,343.17
(2)Construction in progress
transfer-in
774,342.66 151,014.11 925,356.77
4.Ending balaqnce 535,709,595.13 1,170,060,495.40 26,091,167.54 146,311,918.85 1,878,173,176.92
III.Impairment provision
1.Beginning balance 113,462.70 998,559.51 1,112,022.21
2.Increase in this year
3.Decrease in this year 2,164.29 2,164.29
(1)Dispose or retirement 2,164.29 2,164.29
4.Ending balaqnce 113,462.70 996,395.22 1,109,857.92
IV.Book value
1.Ending book value 1,203,903,339.56 765,839,913.27 10,050,778.75 143,329,718.17 2,123,123,749.75
2. Opening book value 1,229,984,534.77 727,651,825.02 10,653,410.38 136,329,080.35 2,104,618,850.52
The new fixed assets in this year mainly due to the132,651,516.64 yuan transfer from construction in
process; decrease of the fixed assets in Current Year mainly including assets dispose for retirement.
(2) Fixed assets temporary idle at year-end. N/A
(3) Fixed assets leased through operating lease at year-end
Accumulated Impairment
Item Original book value Book value
depreciation provision
House and buildings 50,691,336.08 18,914,736.77 31,776,599.31
Machinery
equipment
22,429,348.29 15,402,132.29 7,027,216.00
Total 73,120,684.37 34,316,869.06 38,803,815.31
(4) Fixed assets without property certificate
Reason of not complete the property
Item Book value
certificate
J07 electrical workshop 42,932,327.84 Related property rights in procedure
J02workshop 27,617,073.32 Related property rights in procedure
J05 evaporator and condenser
workshop 26,628,077.95 Related property rights in procedure
J01workshop 25,597,448.16 Related property rights in procedure
J06 central air-conditioner
workshop
18,062,009.85 Related property rights in procedure
J50finished product warehouse 15,921,658.66 Related property rights in procedure
J51finished product warehouse 15,448,457.60 Related property rights in procedure
J53finished product warehouse 11,722,286.51 Related property rights in procedure
J52finished product warehouse 11,203,657.15 Related property rights in procedure
J54finished product warehouse 10,956,078.69 Related property rights in procedure
J55finished product warehouse 10,101,083.52 Related property rights in procedure
66
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024
(Unless other wise specified, RMB for record in the Statement)
Reason of not complete the property
Item Book value
certificate
J56 finished product warehouse 10,101,083.52 Related property rights in procedure
J09raw material warehouse 6,122,522.20 Related property rights in procedure
J10raw material warehouse 4,731,618.22 Related property rights in procedure
J11raw material warehouse 4,661,225.90 Related property rights in procedure
J08 packing materials warehouse 4,248,874.06 Related property rights in procedure
J17 chemical storage 1,453,978.78 Related property rights in procedure
J15 house of refrigerant forklift 1,424,846.66 Related property rights in procedure
J16 chemical storage 1,173,465.56 Related property rights in procedure
J19 main guard room 348,086.85 Related property rights in procedure
J19A guard room 184,676.45 Related property rights in procedure
J19D guard room 135,795.39 Related property rights in procedure
J19E guard room 135,795.39 Related property rights in procedure
Total 250,912,128.23
16.2 Disposal of fixed assets
Reasons for disposal
Item Ending balance Beginning balance
transferred
Relocation for land
Relevant assets disposal for reserved lands 32,293,183.76 32,293,183.76
reserve
For customer
Machinery equipment 554,340.35 acceptance and
treatment
Total 32,847,524.11 32,293,183.76
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.
17. Construction in progress
67
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024
(Unless other wise specified, RMB for record in the Statement)
Item Ending balance Beginning balance
Construction in progress 69,381,313.71 69,920,839.20
Total 69,381,313.71 69,920,839.20
(1) Details of construction in progress
Ending balance Beginning balance
Impairm Impairm
Items ent Book ent Book
Book balance Book balance
provisio value provisio value
n n
Hefei manufacturing base
15,536,79
refrigerator front-end production 15,536,793.51
capacity promotion project 3.51
Technical transformation project of 7,580,020 7,036,680
7,580,020.97 7,036,680.59
Zhongshan Changhong .97 .59
Investment projects to improve 5,946,371
5,946,371.69 -
production and ensure supply .69
Industrial Internet Changhong 5,633,962 5,563,207
5,633,962.29 5,563,207.57
Meiling Promotion Project .29 .57
New flat color plate door shell line 4,140,206 2,155,584
4,140,206.21 2,155,584.07
project .21 .07
Extrusion and crushing capacity
improvement demand project of 3,299,034 1,033,130
3,299,034.71 1,033,130.00
Hefei refrigerator manufacturing .71 .00
company
Fixed assets project of 7 kg 3,069,026 1,534,513
3,069,026.56 1,534,513.28
supporting production equipment .56 .28
Transformation and maintenance
2,632,393 2,048,088
project of large line for B-line shift 2,632,393.75 2,048,088.46
.75 .46
recovery
2,421,592 1,027,433
Blister machine project 2,421,592.91 1,027,433.62
.91 .62
Air conditioning manufacturing
1,361,215 24,062,12
system capacity improvement 1,361,215.39 24,062,124.83
.39 4.83
renovation project
1,038,128 648,083.6
415 series conversion project 1,038,128.20 648,083.64
.20 4
Liquid nitrogen tank production 580,864.9 680,956.0
580,864.94 680,956.02
line construction 4 2
23 years of Manufacturing System 532,412.8 1,113,002.
532,412.89 1,113,002.29
Automation Project 9 29
Commercial kitchen refrigerator 1,894,989
- 1,894,989.00
cabinet project .00
Washing machine manufacturing
company capacity and production 1,624,647
- 1,624,647.04
efficiency improvement project in .04
the first quarter
Large refrigerator efficiency
1,388,626
improvement and transformation - 1,388,626.00
.00
project
Rectification project of elevators
1,124,589
and fire hazards in charging area of - 1,124,589.14
.14
finished product warehouse
627,076.1
Laboratory investment projects - 627,076.10
0
Supporting production equipment 617,699.1
- 617,699.12
of washing machine 2
68
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024
(Unless other wise specified, RMB for record in the Statement)
Ending balance Beginning balance
Impairm Impairm
Items ent Book ent Book
Book balance Book balance
provisio value provisio value
n n
Meiling extrusion line relocation 339,115.0
- 339,115.04
and capacity expansion project 4
Adaptability transformation project
2,634,632
of fin stamping production line and - 2,634,632.94
.94
its supporting equipment
2,003,069
Projects to be installed equipment - 2,003,069.71
.71
15,609,28 10,763,59
Other petty projects 15,609,289.69 10,763,590.74
9.69 0.74
69,381,31 69,920,83
Total 69,381,313.71 - 69,920,839.20 -
3.71 9.20
(2) Changes in significant construction in progress
Amount of
Amount fixed assets Other
Beginning increased in transferred decreases Ending
Name of the project Budget
balance the current in the for the balance
period current period
period
Hefei manufacturing
base refrigerator
front-end production 88,000,000.00 15,536,793.51 15,536,793.51
capacity
improvement project
Continued
The
The proportion of Thereinto: the Capitalization
Progress accumulated
the cumulative amount of interest rate of interest
of the amount of Funds source
investment of the capitalization in the for the current
project interest
project to the budget current period period
capitalization
19.95% 50% Self funds
18. Right-of-use assets
Item House and buildings Total
I. Original book value
1.Beginning balance 62,005,148.15 62,005,148.15
2.Increase in this year 72,131,961.87 72,131,961.87
(1) Rent in 72,131,961.87 72,131,961.87
3. Decrease in this year
4.Ending balaqnce 134,137,110.02 134,137,110.02
II.Accumulated depreciation
1.Beginning balance 12,011,747.54 12,011,747.54
2. Increase in this year 6,700,265.95 6,700,265.95
(1)Accrual 6,700,265.95 6,700,265.95
69
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024
(Unless other wise specified, RMB for record in the Statement)
Item House and buildings Total
3. Decrease in this year
4.Ending balaqnce 18,712,013.49 18,712,013.49
III.Impairment provision
1.Beginning balance
2. Increase in this year
3. Decrease in this year
4.Ending balaqnce
IV.Book value
1.Ending book value 115,425,096.53 115,425,096.53
2. Opening book value 49,993,400.61 49,993,400.61
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.
19. Intangible assets
(1) Intangible assets
Trademark Non-patent Patent
Item Land use right Other Total
special right technology technology
I.Original book
value
1.Beginning
balance
864,798,616.68 283,292,439.34 743,027,808.89 196,090,356.16 11,193,437.00 2,098,402,658.07
2.Increase in this
year
49,878,953.27 25,301,221.76 379,622.64 75,559,797.67
(1) Internal
research
49,878,953.27 25,301,221.76 75,180,175.03
（2）Other 379,622.64 379,622.64
3.Decrease in this
year
379,622.64 379,622.64
(1) Disposal
(2)Other
decreases
379,622.64 379,622.64
4.Ending balaqnce 864,798,616.68 283,292,439.34 792,527,139.52 221,391,577.92 11,573,059.64 2,173,582,833.10
II.Accumulated
amortization
1.Beginning
balance
233,381,336.43 283,292,439.34 550,293,846.69 76,940,491.50 4,235,458.67 1,148,143,572.63
2.Increase in this
year
9,206,326.39 45,782,698.32 17,042,208.15 857,366.38 72,888,599.24
(1)Accrual 9,206,326.39 45,782,698.32 17,042,208.15 572,649.42 72,603,882.28
（2）Other 284,716.96 284,716.96
3.Decrease in this
year
284,716.96 284,716.96
（1）Other 284,716.96 284,716.96
4.Ending balaqnce 242,587,662.82 283,292,439.34 595,791,828.05 93,982,699.65 5,092,825.05 1,220,747,454.91
III.Impairment
provision
70
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024
(Unless other wise specified, RMB for record in the Statement)
Trademark Non-patent Patent
Item Land use right Other Total
special right technology technology
1.Beginning
balance
41,003,993.41 18,291,161.97 4,508,495.33 63,803,650.71
2.Increase in this
year
3.Decrease in this
year
4.Ending balaqnce 41,003,993.41 18,291,161.97 4,508,495.33 63,803,650.71
IV.Book value
1.Ending book
value
622,210,953.86 155,731,318.06 109,117,716.30 1,971,739.26 889,031,727.48
2. Opening book
value
631,417,280.25 151,729,968.79 100,858,702.69 2,449,483.00 886,455,434.73
The intangible assets resulted from internal research takes3.46% of the balance of intangible assets at
year-end
(2) No land use right without property certification done at year-end
(3) Impairment test of intangible assets:N/A
20. Development expense
（1）Detail
Ending balance Beginning balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Developm
ent 110,820,740.92 110,820,740.92 97,177,535.34 97,177,535.34
expense
Total 110,820,740.92 110,820,740.92 97,177,535.34 97,177,535.34
（2）Other
Development expenditure are detailed in note VI to this financial statement..
21. Goodwill
(1) Original value of goodwill
Increase this year Decrease this year
Beginning Formation Formation Ending
Invested enterprise from from
balance Other Other balance
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
71
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024
(Unless other wise specified, RMB for record in the Statement)
Beginning Increase this year Decrease this year
Invested enterprise Ending balance
balance Accrual Other Accrual Other
Hefei Meiling Group Holdings
3,553,367.77 3,553,367.77
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.
22. Long-term prepaid expenses
Increase this Amortization
Item Opening balance Other decreases Ending balance
period for the period
Long-term prepaid
35,698,465.62 4,577,809.12 7,060,808.34 33,215,466.40
expenses
Total 35,698,465.62 4,577,809.12 7,060,808.34 33,215,466.40
23. Deferred tax assets and deferred tax liabilities
(1) Deferred income tax assets without the offset
Ending balance Beginning balance
Item Deductible Deferred Deductible Deferred
temporary income tax temporary income tax
difference assets difference assets
Deferred income tax assets recognized
450,041,039.30 67,506,155.91 575,117,840.02 86,267,676.00
from ir-reparable losses
Deferred income tax assets recognized
329,143,252.73 49,760,008.05 312,522,821.29 47,114,940.66
from assets impairment
Deferred income tax assets recognized
76,103,886.35 11,415,582.96 89,179,865.35 13,376,979.81
from deferred income
Deferred income tax assets recognized
112,468,629.53 17,357,210.62 52,138,935.61 7,287,948.90
by lease liabilities
Deferred income tax assets recognized
35,570,774.19 5,441,345.15 31,904,790.39 4,785,718.56
from accrual liability
Deferred income tax assets recognized
12,886,850.40 1,933,027.56 13,940,576.25 2,091,086.44
from Dismission welfare
Accrued income tax assets 7,676,622.07 1,655,300.91 6,464,906.83 1,367,611.03
Deferred income tax assets recognized by
21,275,136.81 3,191,270.53 323,557.50 48,533.63
changes in fair value
Total 1,045,166,191.38 158,259,901.69 1,081,593,293.24 162,340,495.03
(2) Deferred income tax liabilities without the offset
Ending balance Beginning balance
Item Taxable Deferred Taxable Deferred
temporary income tax temporary income tax
differences liability differences liability
Recognized by changes in fair value 54,610,621.34 7,512,564.33 72,922,565.81 10,938,384.87
Deferred income tax liabilities
110,898,237.37 17,893,276.46 49,993,400.61 7,031,136.31
recognized by use asset
Recognized by fixed assets depreciation 23,213,429.66 3,484,182.62 25,632,968.47 3,844,945.25
Total 188,722,288.37 28,890,023.41 148,548,934.89 21,814,466.43
(3) Details of unrecognized deferred income tax assets
Item Ending balance Beginning balance
Deductible temporary difference 134,020,915.31 159,108,623.94
72
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024
(Unless other wise specified, RMB for record in the Statement)
Item Ending balance Beginning balance
Deductible loss 187,044,746.04 216,256,401.45
Total 321,065,661.35 375,365,025.39
24. Other non-current assets
Ending balance Beginning balance
Item
Impairment Impairmen
Book balance Book value Book balance Book value
provision t provision
Prepaid
equipment, 2,446,254.28 2,446,254.28 15,299,373.85 15,299,373.85
engineering, etc.
12,083,853.03 623,720.00 11,460,133.03 11,955,960.50 653,720.00 11,302,240.50
Contract asset
14,530,107.31 623,720.00 13,906,387.31 27,255,334.35 653,720.00 26,601,614.35
Total
25.Assets with restricted ownership or use right
Ending balance
Item Book Balance Restrictio
Book value Restriction information
n type
Security deposit; Frozen for
Monetary funds 426,428,115.13 426,428,115.13 Frozen litigation
Receivable Pledge for issuing bank
financing 743,380,533.32 743,380,533.32 Pledge acceptance bills
Real estate
investment
5,795,017.72 3,007,051.80 Mortgage Loan mortgage
Fixed assets 478,767,594.24 313,432,156.44 Mortgage Loan mortgage
Intangible assets 415,797,056.93 260,033,471.63 Mortgage Loan mortgage
Total 2,070,168,317.34 1,746,281,328.32 — —
Continued
Beginning balance
Item Restrictio
Book Balance Book value Restriction information
n type
Security deposit; Frozen for
Monetary funds 438,655,288.66 438,655,288.66 Frozen
litigation
Receivable Pledge for issuing bank
997,291,535.93 997,291,535.93 Pledge
financing acceptance bills
Real estate
5,795,017.72 3,097,441.68 Mortgage Loan mortgage
investment
Fixed assets 478,732,601.33 321,209,491.52 Mortgage Loan mortgage
Intangible assets 415,797,056.93 264,252,595.08 Mortgage Loan mortgage
Total 2,336,271,500.57 2,024,506,352.87 — —
26. Short-term loans
73
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024
(Unless other wise specified, RMB for record in the Statement)
(1)Classification of short-term loans
Category Ending balance Beginning balance
Guaranteed loan 5,000,000.00 5,000,000.00
Loan in credit 1,140,328,642.91 1,128,967,080.14
Interest payable 221,944.44 135,338.89
Total
1,145,550,587.35 1,134,102,419.03
(2)Short-term loans overdue：N/A.
27. Trading financial liability
Item Ending balance Beginning balance
Trading financial liability 46,906,758.56 32,229,012.86
Including: Derivative financial liability 46,906,758.56 32,229,012.86
28. Note payable
Type Ending balance Beginning balance
Bank acceptance 6,991,196,515.00 5,604,059,289.98
Trade acceptance 447,732,011.00 300,327,800.00
Total 7,438,928,526.00 5,904,387,089.98
The total amount of notes payable due and unpaid at the end of the current period was RMB 192,000.00,
and the reason for the non-payment was that the creditor did not make a reminder payment.
29. Account payable
(1) Account payable
Item Ending balance Beginning balance
Total 6,482,294,160.76 3,882,303,908.89
Including: Amount aged over 1 year 83,777,136.56 87,743,285.28
(2) Major account payable with over one year book age at year-end.: N/A
30. Received in advance.
Category Ending balance Beginning balance
Total 847,417.67 55,949.90
Including: Amount aged over 1 year
31. Contract liabilities
(1) Contract liabilities
Item Ending balance Beginning balance
Total 394,822,462.19 405,698,756.02
Including: Amount aged over 1 year 25,237,697.74 42,798,796.43
(2) Major contract liabilities with over one year book age at year-end.: N/A
74
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024
(Unless other wise specified, RMB for record in the Statement)
(3)Significant changes in the book value in the current period: N/A
32. Wages payable
(1) Category
Item Beginning balance Increase this year Decrease this year Ending balance
Short-term compensation 437,396,328.78 1,005,378,642.55 1,002,610,695.88 440,164,275.45
After-service welfare- defined
1,752,993.49 68,448,865.84 68,518,355.32 1,683,504.01
contribution plans
Dismiss welfare 4,462,894.29 2,371,709.84 2,722,100.44 4,112,503.69
Total 443,612,216.56 1,076,199,218.23 1,073,851,151.64 445,960,283.15
(2) Short-term compensation
Item Beginning balance Increase this year Decrease this year Ending balance
Wages,bonuses,allowances and
429,211,880.79 909,374,229.29 907,315,521.96 431,270,588.12
subsidies
Welfare for workers and
557,735.88 27,360,479.50 27,271,065.89 647,149.49
staff
Social insurance 1,701,031.21 29,402,367.32 29,488,156.68 1,615,241.85
Including: Medical
1,588,055.26 27,036,608.58 27,042,248.98 1,582,414.86
insurance
Work injury insurance 29,219.11 2,360,749.61 2,357,141.73 32,826.99
Maternity insurance 83,756.84 5,009.13 88,765.97 -
Housing accumulation
5,412,345.24 36,574,105.36 36,383,051.19 5,603,399.41
fund
Labor union expenditure
and personnel education 513,335.66 2,667,461.08 2,152,900.16 1,027,896.58
expense
Total 437,396,328.78 1,005,378,642.55 1,002,610,695.88 440,164,275.45
(3) Defined contribution plans
Item Beginning balance Increase this year Decrease this year Ending balance
Basic endowment
598,361.39 66,096,945.88 66,167,060.91 528,246.36
insurance
Unemployment
1,154,632.10 2,351,919.96 2,351,294.41 1,155,257.65
insurance
Total 1,752,993.49 68,448,865.84 68,518,355.32 1,683,504.01
33. Tax payable
75
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024
(Unless other wise specified, RMB for record in the Statement)
Item Ending balance Beginning balance
Value-added tax 11,686,146.17 16,433,804.39
Enterprise income tax 36,181,243.91 22,442,997.30
Individual income tax 1,796,200.82 9,049,531.30
Urban maintenance and construction
7,063,245.92 8,800,180.85
tax
Real estate tax 3,866,629.76 3,702,169.69
Land use tax 1,430,553.18 1,430,553.17
Educational surtax 5,196,405.31 6,388,436.72
Stamp tax 6,169,729.57 4,270,122.54
Construction fund of Water
657,544.85 663,334.83
Conservancy Projects
Treatment fund for abandon electrics
16,436,695.00
& electronics
Other 2,353,137.82 2,299,925.92
Total 76,400,837.31 91,917,751.71
34. Other account payable
Item Ending balance Beginning balance
Dividend payable 6,005,989.72 5,384,407.44
Other account payable 1,033,230,180.96 879,330,313.86
Total 1,039,236,170.68 884,714,721.30
34.1 Dividend payable
Item Ending balance Beginning balance
China Life Insurance (Group) Company 65,987.57 432,607.23
Hefei Branch of Bank of China 631,013.60 446,576.60
Hefei collective industry association 631,012.60 446,575.90
Provincial trust and investment company Wuhu
504,810.90 357,261.30
office
China Life Insurance (Group) Company 43,992.07 288,404.82
BOC- Fullgoal Tianyi Securities Investment Fund 153,697.50 153,697.50
Other units 3,975,475.48 3,259,284.09
Total 6,005,989.72 5,384,407.44
34.2 Other account payable
(1) Other account payable by nature
76
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024
(Unless other wise specified, RMB for record in the Statement)
Nature Ending balance Beginning balance
Accrued expenses (expenses occurred without reimbursed) 500,069,530.97 381,110,482.12
Receivables received temporary and deducted temporary 10,766,232.79 13,201,384.59
Deposit, margin 156,884,291.78 170,042,120.52
Not the come-and-go with related parties in statement scope 339,850,177.36 285,951,275.98
Other 25,659,948.06 29,025,050.65
Total 1,033,230,180.96 879,330,313.86
(2) At end of the year, the major other account payable with account age over one year mainly refers to
the deposit and margin. :N/A
35. Non-current liability due within one year
Item Ending balance Beginning balance
Long-term loan principal and interest due within one year 45,299,832.44 40,172,155.56
Lease liabilities due within one year 14,495,340.68 8,650,642.91
Total 59,795,173.12 48,822,798.47
36. Other current liabilities
Item Ending balance Beginning balance
Pending sales tax 15,760,538.79 18,915,531.41
Factoring fees payable 2,095,449.88 218,335.59
Bill recovery 38,674.50
Total 17,855,988.67 19,172,541.50
37. Long term borrowings
(1) Category of long term borrowings
Category Ending balance Beginning balance
Loan in mortgage 83,000,000.00 108,000,000.00
Loan in credit 6,058,089.90
Total 89,058,089.90 108,000,000.00
(2) Long-term borrowings at period-end
Foreign
Borrowing Returning Interest Amount at year- Amount at year-
Loan from currenc
day day rate end (RMB) begin(RMB)
y
EIBC (Export-Import
Bank) Anhui Province 2020/3/26 2026/11/25 RMB 3.755% 83,000,000.00 98,000,000.00
Branch note1
EIBC (Export-Import
Bank) Anhui Province 2019/12/23 2026/11/2 RMB 4.005% 10,000,000.00
Branch note2
Zhongshan Rural
Commercial Bank Co.,
2024/1/25 2025/12/31 RMB 3.850% 6,058,089.90
Ltd. Zhongshan South
Head Sub-branch note3
Total 89,058,089.90 108,000,000.00
Note 1: The Company signed the "Loan Contract (Promoting the Opening-up of Loans in China - Fixed
77
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024
(Unless other wise specified, RMB for record in the Statement)
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. According to the repayment plan agreed with the bank, It plans to repay
15,000,000.00 yuan on June 25, 2025 has been reclassified to non-current liabilities due within one year.
The balance at the end of the year is RMB 83,000,000.00.
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 70,000,000.00 yuan. It plans to repay 20,000,000.00 yuan on
December 25, 2024 and repay 10,000,000.00 yuan on June 25, 2024, a total of 30,000,000.00 yuan has
been reclassified to non-current liabilities due within one year. The balance at the end of the year is 0
yuan.
Note 3:Hongyuan Heat Pump Technology (Zhongshan) Co., Ltd. and Zhongshan Rural Commercial
Bank Co., Ltd. Nantou Branch signed the "Loan Contract (Corporate Business-Fixed Assets)", with pure
credit approval, no guarantee, no pledge, the loan period is January 25, 2024 to December 31, 2025, the
loan amount in 2024 is 6,213,427.90 yuan, the borrowing interest rate is determined by increasing the
one-year market base interest rate LPR by 40 basis points, adjusted based on the corresponding date
tothe specific date of previous year, and the current interest rate is 3.85%. The principal is repaid at 2.5%
of the single loan amount every six months, and the remaining principal is repaid in a lump sum on the
maturity date of the contract. According to the repayment plan agreed with the bank, It plans to repay
155,338.00 yuan on June 30, 2025 has been reclassified to non-current liabilities due within one year.
The balance at the end of the year is 6,058,089.90 yuan.
38. Lease liability
Item Ending balance Beginning balance
Lease liability 104,173,573.28 43,488,292.70
Total 104,173,573.28 43,488,292.70
39. Long-term payable
Item Ending balance Beginning balance
Special payable 627,878.52 800,347.84
Total 627,878.52 800,347.84
39.1Special payable
Beginning Increase this Decrease this
Item Ending balance Reason
balance year year
Special funds for Technology plan
800,347.84 172,469.32 627,878.52 project in
technological
78
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024
(Unless other wise specified, RMB for record in the Statement)
Beginning Increase this Decrease this
Item Ending balance Reason
balance year year
transformation from Zhongshan City
Zhongshan Changhong
40. Long-term wage payable
Item Ending balance Beginning balance
Dismissal welfare 10,530,588.34 11,417,181.82
Total 10,530,588.34 11,417,181.82
According to the internal early retirement policy, the long-term payable dismissal welfare bears by the
Company up to year-end amounting to 10,530,588.34yuan
41. Accrual liability
Item Ending balance Beginning balance Reason
Product quality guarantee note1 33,605,901.87 29,939,918.07 Product warranty
Litigation matters note2 1,964,872.32 2,114,872.32
Total 35,570,774.19 32,054,790.39
Note 1: Product quality deposit is the maintenance expense provided by the Company under the
national policy.
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". Currently,
quality of the subject under the contract is being authenticated by a third party engineering quality
appraisal agency, the initial start-up operation test is now completed. Zhongke Meiling intends to
maintain the cold storage project, and the estimated maintenance cost is 1,720,534.42 yuan. The
management has provided a total estimated liability of 394337.90 yuan for other business lawsuits The
estimated liabilities of RMB 150,000.00 were reversed after the conclusion of the litigation in the current
period, and the estimated liabilities of RMB 244,337.90 were remaining in provision.
42. Deferred income
Beginning Increase this Decrease this
Item Ending balance Reason
balance year year
Government subsidies---
subsidies of development 102,040,223.27 2,334,900.00 14,503,242.16 89,871,881.11
project
Government subsidies---
30,937,271.06 1,326,544.47 29,610,726.59
subsidies of Relocation
Total 132,977,494.33 2,334,900.00 15,829,786.63 119,482,607.70
43. Share capital
79
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024
(Unless other wise specified, RMB for record in the Statement)
Change during the year (+、-)）
Shares
Items Beginning balance New Ending balance
Bonus transferred Subtota
shares Other
share from capital l
issued
reserve
Total shares 1,029,923,715.00 1,029,923,715.00
44. Capital reserve
Item Beginning balance Increase this period Decrease this period Ending balance
Share premium 2,757,460,366.37 2,757,460,366.37
Other capital
48,043,091.40 48,043,091.40
reserve
Total 2,805,503,457.77 2,805,503,457.77
45. Other comprehensive income
Current period
Less:
written in
other
comprehe
nsive Less
Account Belong to
Beginning before
income in ： Belong to
minority Ending
Item previous Incom parent
balance income tax sharehold balance
period and e tax company
in Current ers after
carried expens after tax
Year tax
forward to es
gains and
losses in
current
period
Other comprehensive income re-divided into gains/losses
Conversion
difference
arising from
-20,704,362.05 -1,142,407.83 -1,173,618.69 31,210.86 -21,877,980.74
foreign currency
financial
statement
Total -20,704,362.05 -1,142,407.83 -1,173,618.69 31,210.86 -21,877,980.74
46.Special reserves
Item Beginning balance Increase this year Decrease this year Ending balance
Safety production costs 11,246,811.91 17,312,570.33 14,105,204.20 14,454,178.04
Total 11,246,811.91 17,312,570.33 14,105,204.20 14,454,178.04
Note: This year's increase refers to the work safety expenses accrued according to the notice issued by
the Ministry of Finance on November 21, 2022 on printing and distributing the Administrative
Measures for the Extraction and Use of Work Safety Expenses of Enterprises (CZ [2022] No.136).
47. Surplus reserves
80
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024
(Unless other wise specified, RMB for record in the Statement)
Item Beginning balance Increase this year Decrease this year Ending balance
Statutory surplus reserve 361,445,492.66 361,445,492.66
Discretionary surplus
115,607,702.16 115,607,702.16
reserve
Total 477,053,194.82 477,053,194.82
48. Retained profit
Item Current period Last Period
Prior year-end balance 1,521,759,836.64 909,082,037.66
Add: adjustment from undistributed profit at year-begin 167,328.13
Including: retroactive adjustment by Accounting
Standards for Business Enterprise
change of accounting policy 167,328.13
Correction of former material error
Change of combination scope under common control
Beginning balance 1,521,759,836.64 909,249,365.79
Add: net profit attributable to shareholders of parent
415,033,415.88 741,038,108.54
company for this year
Less: withdraw of statutory surplus reserve 35,834,503.34
withdraw of discretionary surplus reserve
Withdraw of general risk provision
Dividend payable for ordinary shares 308,977,114.50 92,693,134.35
Dividend of ordinary shares transferred to share capital
Ending balance 1,627,816,138.02 1,521,759,836.64
49. Operation income and operation cost
(1) Operation income and operation cost
Current period Last period
Item
Income Cost Income Cost
Main
14,847,789,922.86 13,208,737,884.37 12,734,698,313.84 11,126,041,806.09
business
Other
99,880,368.84 53,068,681.43 93,996,009.73 52,872,269.74
business
Total 14,947,670,291.70 13,261,806,565.80 12,828,694,323.57 11,178,914,075.83
(2)The decomposition information of operation income and operation cost
Current Period Last Year
Type
Income Cost Income Cost
Product
Including：
4,739,349,946.80 3,927,763,612.82 4,224,670,444.64 3,452,620,652.77
Refrigerator, Freezer
Air-conditioning 8,499,905,660.36 7,916,263,677.05 6,997,497,159.24 6,383,899,125.62
Washing machine 783,936,724.28 660,322,573.64 557,352,305.32 458,999,445.42
Small household
appliances and 744,514,913.93 643,013,706.71 852,703,435.92 746,076,815.25
kitchen and bathroom
81
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024
(Unless other wise specified, RMB for record in the Statement)
Current Period Last Year
Type
Income Cost Income Cost
Other product 80,082,677.49 61,374,314.15 102,474,968.72 84,445,767.03
Other business 99,880,368.84 53,068,681.43 93,996,009.73 52,872,269.74
Area
Domestic 10,130,279,475.77 8,919,072,311.98 8,930,940,864.80 7,731,160,093.49
Overseas 4,817,390,815.93 4,342,734,253.82 3,897,753,458.77 3,447,753,982.34
Total 14,947,670,291.70 13,261,806,565.80 12,828,694,323.57 11,178,914,075.83
（3）Information related to performance obligations
Types of
Nature of Amount
quality
the goods Main expected to be
Time to perform assurance
Material payment that the responsibl refunded to
Item performance provided by
terms Company e person customers
obligations the Company
promises to or not undertaken by
and related
transfer the Company
obligations
When the
Advance payment
Income customer obtains Product
or payment
from sales the control right Goods Yes No quality
collected according
of goods of relevant assurance
to credit period
commodities
Income Advance payment
When customers
from or payment
obtain related Service Yes No
providing collected according
services
services to credit period
(4)Information related to the transaction price allocated to the remaining performance obligations
At the end of this year, the income corresponding to the performance obligations that have been signed
but not yet fulfilled or not yet fully fulfilled is RMB 112,929,265.33, of which RMB 49,843,805.15is
expected to be recognized in 2024, RMB53,085,460.18 in 2025 and RMB10,000,000.00 in 2026.
50. Business tax and extra charges
Item Current period Last period
Treatment fund for abandon electrics & electronics 45,585,295.00
City construction tax 12,658,264.45 13,473,561.59
Extra charge for education and local education
9,528,988.49 10,374,633.25
surcharge
Real estate tax 10,608,992.62 10,697,322.79
Stamp duty 12,554,573.75 10,239,001.40
Land use tax 3,870,113.74 3,870,702.26
Water fund 3,876,070.99 3,778,106.41
Other 13,909.15 7,143.92
Total 53,110,913.19 98,025,766.62
51. Sales expense
Item Current period Last period
Salary, extra charges and labor service expenses 301,793,753.60 327,557,081.46
82
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024
(Unless other wise specified, RMB for record in the Statement)
Item Current period Last period
Market support expenses 174,815,604.29 140,461,155.25
National three guarantees expense 94,809,310.25 81,830,891.01
Shipping and Installation expense 91,952,697.03 86,205,859.39
Storage lease expenses 70,156,124.81 45,248,950.36
Insurance 26,125,049.13 11,544,975.60
Travelling expenses 12,042,153.80 27,620,363.01
Business activity expenses 7,428,851.26 8,433,498.60
Vehicle expenses 7,091,465.14 6,329,264.05
Depreciation expenses 4,127,717.61 4,023,917.38
Other expenses 43,987,022.64 47,237,303.21
Total 834,329,749.56 786,493,259.32
52. Administration expense
Item Current period Last period
Salary and social insurance etc. 103,449,052.65 119,736,522.57
Depreciation 11,260,014.11 11,309,060.92
Amortized intangible assets 9,096,588.72 9,135,614.87
Software use 3,638,733.82 2,629,643.03
Water and electricity fee 3,314,456.03 2,425,289.58
Property insurance 2,258,205.69 1,875,442.73
Safety in production 2,187,081.24 2,078,232.07
Business activities fee 2,172,710.94 3,157,527.78
Software use 2,036,485.69 1,841,591.27
Housing rent 1,960,818.91 706,646.91
Travelling fee 1,703,367.94 1,841,650.97
Other expenses 14,358,990.25 26,225,642.90
Total 157,436,505.99 182,962,865.60
53. R&D expenses
Item Current period Last period
Salary and social insurance etc. 125,688,771.65 116,235,127.25
Amortized intangible assets 62,574,483.08 63,618,830.74
Trial fee of R&D 33,329,478.98 26,151,862.28
Cost of mould 19,477,506.31 13,061,216.32
Depreciation 11,382,038.44 10,012,109.72
Technological development 9,795,954.43 9,999,651.18
Trial fee of R&D 7,681,408.61 8,613,510.99
83
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024
(Unless other wise specified, RMB for record in the Statement)
Item Current period Last period
Water and electricity fee 5,451,257.04 5,616,418.28
Other expenses 12,220,699.74 11,867,471.17
Total 287,601,598.28 265,176,197.93
54. Financial expenses
Item Current period Last period
Interest expenditure 12,799,719.70 13,185,503.15
Less: Interest income 98,725,551.34 83,240,562.07
Add: exchange loss -8,064,704.24 -35,883,923.32
Procedure charge expenditure 8,611,344.51 7,339,147.69
Discount expenditure -18,083,136.98 -17,235,858.76
Interest expense on lease liability 1,761,401.61 821,767.04
Total -101,700,926.74 -115,013,926.27
55. Other income
Item Current Period Last Period
Advanced manufacturing value-added tax deduction 50,468,374.01
The deferred income is transferred 15,829,786.63 15,696,724.67
Immediate VAT refund after collection 4,288,247.02 4,165,995.12
Talent incentives and technological transformation
4,052,377.92 272,732.00
subsidies
Enterprise support funds 2,338,639.00 8,905,000.00
Other tax returns 1,327,682.14 648,855.83
Financial awards 1,060,000.00 838,234.37
Stable job subsidy 633,337.08 216,067.21
R & D Subsidy 250,000.00 333,305.00
Foregn economic and trade development promotion
194,200.00
funds
Other petty projects 1,059,503.82 1,057,142.46
Total 81,307,947.62 32,328,256.66
56. Investment income
Item Current Period Last Period
Long-term equity investment income by equity method 7,391,368.30 12,544,969.44
Investment income obtained from disposal of Trading financial
assets -6,015,323.23 -4,626,995.54
Investment income of other current financial assets during holding
1,656,388.88 1,840,756.94
period
Investment income of other non-current financial assets during 12,912,196.37 11,409,029.33
84
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024
(Unless other wise specified, RMB for record in the Statement)
Item Current Period Last Period
holding period
The termination of income recognition for financial assets measured
-24,604,289.53 -14,192,040.21
by amortized cost
Interest income from debt investment during the holding period 11,593,385.08 7,402,220.09
Total 2,933,725.87 14,377,940.05
57. Changes in fair value gains
Item Current Period Last Period
Trading financial assets -28,041,659.98 15,221,223.22
Including :Income of fair value changes from derivative
-30,482,326.98 14,587,494.15
financial instruments
Interest accrual for wealth management products 2,440,667.00 633,729.07
Trading financial liability -14,677,745.70 -71,649,406.65
Including: Income of fair value changes from derivative
-14,677,745.70 -71,649,406.65
financial instruments
Total -42,719,405.68 -56,428,183.43
58. Credit impairment loss
Item Current Period Last Period
Account receivable bad debt loss 12,428,045.01 -42,428,408.08
Other account receivable bad debt loss 47,845.63 1,346,818.25
Total 12,475,890.64 -41,081,589.83
59. Assets impairment loss
Item Current Period Last Period
Loss on inventory valuation -27,799,697.87 -16,752,702.16
Impairment loss on contractual assets 41,475.88 -824,633.73
Development expense impairment loss -1,530,365.17
Other impairment losses of non-current assets 30,000.00 -590,000.00
Total -29,258,587.16 -18,167,335.89
60. Income from assets disposal
Item Current Period Last Period
Income from non-current assets disposal 36,334.95
Including: income classify to assets ready for sale
income not classify as to assets ready for sale 36,334.95
Including: Income from fixed assets disposal 36,334.95
Total 36,334.95
85
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024
(Unless other wise specified, RMB for record in the Statement)
61. Non-operation revenue
Amount reckoned into non-
Item Current Period Last Period recurring gains/losses in
Current Period
Income of penalty 927,089.26 4,888,567.59 927,089.26
Other 1,623,453.44 5,815,452.21 1,623,453.44
Total 2,550,542.70 10,704,019.80 2,550,542.70
62. Non-operating expenditure
Amount reckoned into non-
Item Current Period Last Period recurring gains/losses in
Current Period
Non-current asset retirement
1,335,367.01 2,758,202.88 1,335,367.01
losses
Other 3,141,723.09 256,596.34 3,141,723.09
Total 4,477,090.10 3,014,799.22 4,477,090.10
63. Income tax expenses
Item Current Period Last Period
Current income tax 41,949,054.19 8,379,498.72
Deferred Income Tax 11,156,150.32 -7,454,488.68
Total 53,105,204.51 925,010.04
64. Other comprehensive income
Found more in 45. Other comprehensive income in V
65. Items of cash flow statement
(1) Cash related to business activities
1) Cash received from other activities relating to operation
Item Government subsidy and rewards Current Period Last Period
Government subsidy and rewards 11,231,873.04 13,652,143.10
Cash deposit, deposit 15,975,517.12 24,366,520.52
Rental income 2,745,771.84 2,985,657.33
Compensations 327,467.67 1,718,745.99
Petty cash collection 4,318.00 140,806.43
Other 7,689,238.80 3,021,399.10
Total 37,974,186.47 45,885,272.47
2) Cash paid for other activities relating to operation
Item Current Period Last Period
Operating out of cash expenses 366,583,583.43 306,192,633.71
86
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024
(Unless other wise specified, RMB for record in the Statement)
Item Current Period Last Period
Petty cash, deposit, Cash deposit 29,856,337.65 39,417,445.80
Total 396,439,921.08 345,610,079.51
(2) Cash related to Investment activities
1) Important cash received related to investment activities
Item Current Period Last Period
Structural deposits 1,300,000,000.00 530,000,000.00
Total 1,300,000,000.00 530,000,000.00
2)Important cash payable related to investment activities
Item Current Period Last Period
2,380,000,000.00 650,000,000.00
Structural deposits
650,000,000.00 340,000,000.00
Large deposit certificate
Fixed deposits 550,000,000.00
Total 3,580,000,000.00 990,000,000.00
3) Cash received from other activities relating to investment
Item Current Period Last Period
Interest income arising from bank savings 99,765,587.63 81,700,559.42
Cash deposit 794,951.65 956,132.70
Income of forward exchange settlement 1,436,020.07 1,303,892.65
Total 101,996,559.35 83,960,584.77
4) Cash paid for other activities relating to investment
Item Current Period Last Period
Loses of forward exchange settlement 7,111,935.45 13,791,587.29
Bid bond refund 500,000.00
Total 7,111,935.45 14,291,587.29
( 3) Cash related to financing activities
1) Cash received from other activities relating to financing
Item Current Period Last Period
Recover restricted funds 71,141,339.20 220,652,668.19
Meiling series (internal) bill discounting 26,054,470.31
fundraising
1,155,206.59
Total 72,296,545.79 246,707,138.50
2) Cash paid for other activities relating to financing
Item Current Period Last Period
Turn into limited funds 58,914,165.67 134,086,488.59
Meiling series (internal) bill discounting
15,883,841.10 23,536,567.33
fundraising
Lease liability principal and interest 5,486,967.90 2,353,526.71
87
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024
(Unless other wise specified, RMB for record in the Statement)
Item Current Period Last Period
Intermediary service fee 230,889.27 65,600.34
Total 80,515,863.94 160,042,182.97
3) Changes in liabilities arising from fund-raising activities
Increase this period Decrease this period
Beginning
Item Ending balance
balance Non Cash Non Cash
Cash changes Cash changes
changes changes
1,659,513.8
Short-term 1,134,102,419.03 1,121,669,129.02 11,470,295.20 1,120,031,742.01 1,145,550,587.35
Loans 9
Long-term
loans 108,000,000.00 6,213,427.90 31,017.88 31,017.88 25,155,338.00 89,058,089.90
Lease
liabilities 43,488,292.70 70,426,877.46 9,741,596.88 104,173,573.28
Lease
liabilities due 8,650,642.91 11,709,308.48 5,486,967.90 377,642.81 14,495,340.68
within 1 year
Long-term
due within 1 40,172,155.56 28,112,480.21 22,984,803.33 45,299,832.44
year
Dividend
5,384,407.44 315,069,034.92 314,447,452.64 6,005,989.72
payable
Total 1,339,797,917.64 1,127,882,556.92 436,819,014.15 1,462,981,983.76 36,934,091.58 1,404,583,413.37
（4）Statement of cash flow in net amount
Financi
Basis for adopting
Item Relevant facts al
net presentation
impact
As a legal entity, the Company reports the gains or losses of
Forward foreign The reported
foreign exchange contract delivery to the receipt of other cash
exchange information is more No
related to investment activities and the payment of other cash
delivery intuitive
related to investment activities
As a legal entity, the Company reports the current year's change
of restricted funds to the receipt of other cash related to fund-
Restricted funds Rolling reflection No
raising activities and the payment of other cash related to fund-
raising activities
As a legal entity, the Company reclassifies the current year's
Meiling change in Meiling (internal) notes discount undue, from cash
(internal) notes received from sales of goods, service provision/cash paid from
Rolling reflection No
discount fund- purchase of goods, and receipt of services to other received cash
raising amount related to fund-raising activities/other paid cash related to fund-
raising activities
（5）It does not involve the current cash receipts and payments, but affects the financial situation of
the enterprise or may affect the cash flow of the enterprise in the future:N/A
66.Supplementary of the consolidated cash flow statement
（1）Supplementary of cash flow statement
Item Current Period Last Period
1. Net profit is adjusted to cash flow of operation
activities:
Net profit 424,830,039.95 369,929,382.64
Add: provision for depreciation of assets 2,393,554.97 435,749.77
88
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024
(Unless other wise specified, RMB for record in the Statement)
Item Current Period Last Period
Credit impairment loss -12,238,336.07 38,934,095.84
Depreciation of fixed assets, consumption of oil gas
118,482,378.45 112,075,611.84
assets and depreciation of productive biological assets
Amortization of intangible assets 72,603,882.28 74,830,332.62
Depreciation of right-of-use assets 6,700,265.95 4,155,504.30
Amortization of long-term retained expense 7,060,808.34 1,235,884.46
Loss from disposal of fixed assets, intangible assets and
36,334.95 -
other long term assets (gain is listed with “-”)
Loss from discarding fixed assets as useless (gain is
1,317,077.20 2,721,451.99
listed with “-”)
Loss from change of fair value (gain is listed with “-”) 42,719,405.68 56,428,183.43
Financial expense (gain is listed with “-”) -93,990,535.88 -105,938,982.24
Investment loss (gain is listed with “-”) -2,933,725.87 -14,377,940.05
Decrease of deferred income tax assets (increase is listed
4,080,593.34 -4,935,498.56
with “-”)
Increase of deferred income tax liabilities (decrease is
7,075,556.98 -2,518,990.12
listed with “-”)
Decrease of inventories (increase is listed with “-”) -1,549,852,189.74 -590,146,519.04
Decrease of operational accounts receivable (increase is
-461,842,328.60 -1,555,010,894.69
listed with “-”)
Increase of operational accounts receivable (decrease is
4,161,783,094.67 3,022,702,437.62
listed with “-”)
Other
Net cash flow arising from operation activities 2,728,225,876.60 1,410,519,809.81
2. Major investment and financing activities that do not
involve cash receipts:
Conversion of debt into capital
Switching Company bonds due within one year
financing lease of fixed assets
3. Net change in cash and cash equivalents:
Balance at period-end of cash 8,613,097,566.14 7,245,577,241.32
Less: Opening balance of cash 8,391,128,635.87 6,113,222,069.76
Add: Balance at period-end of cash equivalents
Less: Opening balance of cash equivalents
Net increase in cash and cash equivalents 221,968,930.27 1,132,355,171.56
(2) No net cash paid for subsidiary obtained in Current Period
(3) No net cash received from subsidiary disposal in Current Period
(4) Cash and cash equivalent
Item Ending balance Beginning balance
Cash 8,613,097,566.14 8,391,128,635.87
89
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024
(Unless other wise specified, RMB for record in the Statement)
Item Ending balance Beginning balance
Including: cash in stock 30,445.27 12,727.56
Bank deposits available for payment at any time. 8,610,951,284.18 8,387,387,613.83
Other monetary fund available for payment at any time 2,115,836.69 3,728,294.48
Cash equivalents
Including: bond investment due within 3 months
Balance of cash and cash equivalents at year-end 8,613,097,566.14 8,391,128,635.87
Including: using the restricted cash and cash equivalents of the
parent company or subsidiary of the group
（5）This year, there is no limited scope of use but it is still listed in cash and cash equivalents
（6）Monetary funds that are not cash and cash equivalents
Reasons other than cash
Item This period's amount Last period's amount
and cash equivalents
Judicial freezing of funds due to
5,603,675.00 27,715,825.21 Limited use
contract disputes
Guarantee and acceptance bill
420,824,440.13 410,939,463.45 Limited use
deposit
Interest receivable 10,163,610.51 10,901,601.18 Interest accrual
Total 436,591,725.64 449,556,889.84 —
67. Foreign currency
(1) Foreign currency
Ending foreign currency
Item Exchange rate Ending RMB converted balance
balance
Monetary fund 259,031,085.41
Including: USD 12,023,741.46 7.1268 85,690,800.64
Euro 13,048,818.82 7.6617 99,976,135.15
PKR 926,728,209.90 0.0256 23,724,242.17
IDR 41,615,900,843.00 0.000440 18,310,996.37
AUD 5,079,166.81 4.7650 24,202,229.85
PHP 5,066,432.14 0.1215 615,571.51
Won 1,254,790,849.00 0.005189 6,511,109.72
Account receivable 1,445,148,682.38
Including: USD 166,952,728.36 7.1268 1,189,838,704.48
Euro 9,454,795.67 7.6617 72,439,807.98
PKR 412,834,190.01 0.0256 10,568,555.26
IDR 119,688,257,765.00 0.000440 52,662,833.42
AUD 20,813,127.00 4.7650 99,174,550.16
PHP 65,619,743.50 0.1215 7,972,798.84
Won 2,407,290,854.00 0.005189 12,491,432.24
Other account receivable 1,162,321.73
Including: USD 102,747.50 7.1268 732,260.88
PKR 4,473,341.39 0.0256 114,517.54
90
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024
(Unless other wise specified, RMB for record in the Statement)
Ending foreign currency
Item Exchange rate Ending RMB converted balance
balance
IDR 484,250,470.00 0.000440 213,070.21
PHP 843,400.00 0.1215 102,473.10
Account payable 53,633,110.34
Including: USD 488,535.33 7.1268 3,481,693.59
Euro 13,419.32 7.6617 102,814.80
Other account payable 621,020,495.22 0.0256 15,898,124.68
Including: PKR 60,037,668,601.00 0.000440 26,416,574.18
IDR 63,653,523.38 0.1215 7,733,903.09
Other account payable 18,623,183.96
Including: PKR 276,756,931.77 0.0256 7,084,977.45
IDR 25,666,936,872.00 0.000440 11,293,452.22
PHP 2,014,438.64 0.1215 244,754.29
(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.
68.Lease
（1）The Company as lessee
Amount incurred this Amount incurred last
Item
period period
Interest expense of lease liabilities 1,761,401.61 821,767.04
Short-term lease expenses with simplified treatment included in
5,707,741.23 4,802,249.90
current profits and losses
The total cash outflow related to leasing is 10621500.81 yuan.
（2）The Company as lessor
1）Operating lease of the Company as lessor
In which: income related to variable
Item Lease income lease payment not included in lease
receipts
House building 10,098,660.44
Equipment 1,645,139.72
Total 11,743,800.16
2）Financial lease of the Company as lessor: N/A.
（3）The Company does not recognize the profit and loss of financial lease sales as a manufacturer or
distributor.
VI.R&D expenditure
91
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024
(Unless other wise specified, RMB for record in the Statement)
Amount incurred last period
Item Amount incurred this period
Salary, social security, etc 146,813,392.74 143,485,454.57
Amortization of intangible assets 62,574,483.08 63,618,830.74
Cost of mould 76,827,153.20 59,644,367.56
R&D and trial production costs 41,544,966.98 27,127,642.70
Technological development
10,749,161.73 12,057,739.60
expense
Depreciation expense 10,817,365.05 9,064,081.71
Inspection and certification fees 9,214,086.26 10,541,017.26
Domestic travel expenses 2,786,185.99 2,136,403.01
Other expenses 16,628,549.03 15,504,855.14
Total 377,955,344.06 343,180,392.29
Among them: Expensed R&D
287,601,598.28 265,176,197.93
expenses
Capitalized R&D expenditure 90,353,745.78 78,004,194.36
1.R&D projects eligible for capitalization
Increased amount this year Decreased amount this year
Transfer to Ending
Beginning
Item Internal Other Recognized as current
balance
development increase intangible profits and balance
expenditure assets losses
Development of
ice washing 59,134,989.07 33,696,292.07 36,835,885.72 1,530,365.17 54,465,030.25
technology
Development of
air conditioning 38,042,546.27 56,657,453.71 38,344,289.31 56,355,710.67
technology
Total 97,177,535.34 90,353,745.78 75,180,175.03 1,530,365.17 110,820,740.92
(1)Material capitalized R&D projects: N/A.
Estimated Expected ways of The starting Specific basis for starting
R&D
Project completion generating point of capitalization
progress
time economic benefits capitalization
Air conditioning Under
R&D project assetization
technology develop January 2025 Product sales January 2025
report
development project ment
(2) Provision for impairment of development expenditure for the current period
Beginning Increase in the Decrease in the Ending Impairment test
Project
balance current period current period balance information
Dry-ice cleaning
technology 1,530,365.17 1,530,365.17
development
Total 1,530,365.17 1,530,365.17
92
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024
(Unless other wise specified, RMB for record in the Statement)
VII. Changes of consolidation rage
1. Enterprise combined are not under the same control: N/A
2. Enterprise combined under the same control: N/A
3. Reversed takeover: N/A
4. Disposal of subsidiary: N/A
5. Subsidiary liquidated : N/A
6. Establishment of a new subsidiary
Reason for the new
Shareholding Net assets at the end Net profit for the
Company name inclusion in
ratio of the period current period
consolidation
Sichuan Changhong
Intelligent Air Investment
100% 95,756,077.38 -4,243,922.62
Conditioning Technology establishment
Co., Ltd
VIII. Equity in other entity
1. Equity in subsidiary
(1) Composition of the enterprise group
Shareholding ratio
Registered Main
Registrati Busines （%) Acquire
Subsidiary capital(RM office
on place s nature Indirectl by
B0'000) place Directly
y
Manufa
Zhongke Meiling Cryogenic Investment
cturing
Technology Co., Ltd 1)
9,673.09 Hefei Hefei
and
47.4512 establishm
ent
sales
Softwar
Sichuan Hongmei Intelligent Investment
Mianya e
Technology Co., Ltd. 2)
500.00 ng
Mianyang
develop
100 establishm
ent
ment
Manufa
Mianyang Meiling Refrigeration Investment
Mianya cturing
Co., Ltd. 3)
10,000.00 ng
Mianyang
and
95 5 establishm
ent
sales
Manufa
Jiangxi Meiling Electric Investment
Jingdez Jingdezhe cturing
Appliance Co., Ltd 4)
5,000.00 hen n and
98.75 1.25 establishm
ent
sales
Softwar
Hefei Meiling Wulian Technology Investment
e
Co., Ltd 5)
1,000.00 Hefei Hefei
develop
100 establishm
ent
ment
Enterprise
Manufa
Hefei Meiling Nonferrous Metal combined
cturing
Products Co., Ltd. 6)
2,428.68 Hefei Hefei
and
100 not under
the same
sales
control
Enterprise
Manufa
Changhong Meiling Ridian combined
Zhongsh Zhongsha cturing
Technology Co., Ltd 7)
8,300.00 an n and
99.0361 under the
same
sales
control
CHANGHONG MEILING Investment
ELECTRIC INDONESIA,PT 4,027.20 Jakapta Jakapta Sales 100 establishm
8） ent
Investment
ChanghongRubaTradingCom 8,308.98 Pakistan Pakistan Sales 60
establishm
93
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024
(Unless other wise specified, RMB for record in the Statement)
Shareholding ratio
Registered Main
Registrati Busines （%) Acquire
Subsidiary capital(RM office
on place s nature Indirectl by
B0'000) place Directly
y
pany（Private）Limited 9) ent
Enterprise
Manufa
Sichuan Changhong Air- combined
Mianya cturing
conditioner Co., Ltd 10)
85,000.00 ng
Mianyang
and
100 under the
same
sales
control
Enterprise
Manufa
Zhongshan Changhong Electric combined
Zhongsh Zhongsha cturing
Co., Ltd 11)
33,400.00 an n and
90 10 under the
same
sales
control
Enterprise
Manufa
Hefei Meiling Group Holdings combined
cturing
Limited 12)
8,000.00 Hefei Hefei
and
100 not under
the same
sales
control
Enterprise
Manufa
Meiling Equator Household combined
cturing
Appliance (Hefei) Co., Ltd. 13)
2,479.32 Hefei Hefei
and
100 not under
the same
sales
control
Enterprise
Manufa
Hefei Equator Appliance Co., Ltd combined
cturing
1,200.00 Hefei Hefei 100 not under
14) and
the same
sales
control
Manufa
Ground Energy Heat Pump Tech. Investment
Mianya cturing
5,000.00 Mianyang 85 establishm
Co., Ltd. 15) ng and
ent
sales
Manufa
Ground Energy Heat Pump Tech. Investment
Zhongsh Zhongsha cturing
4,500.00 85 establishm
(Zhongshan) Co., Ltd. 16) an n and
ent
sales
Guangzhou Changhong Trading Investment
Guangz Guangzho
100.00 Sales 100 establishm
Co., Ltd. 17) hou u
ent
Manufa
Hebei Hongmao Daily Appliance Investment
cturing
500.00 Handan Handan 99.0361 establishm
Technology Co., Ltd. 18) and
ent
sales
Anhui Tuoxing Technology Co., Technology Investment
1,000.00 Hefei Hefei Developme 47.4512 establishm
Ltd. 19)
nt ent
CH-Meiling.International Investment
Philippi Philippine
688.91 Sales 100 establishm
(Philippines) Inc.20） nes s
ent
Anhui Tuoxing Technology Co., Investment
5,000.00 Hefei Hefei Sales 70 establishm
Ltd. 21)
ent
Manufa
Anhui Ling'an Medical Equipment Investment
cturing
5,000.00 Lu'an Lu'an 47.4512 establishm
Co., Ltd 22) and
ent
sales
Sichuan Changhong Intelligence Investment
Air conditioning Technology Co., 10,000.00 Mianyang Mianyang Sales 100 establishm
Ltd. 23) ent
Note：
94
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024
(Unless other wise 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 of35,573,719.70 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
7thBOD 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.
95
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024
(Unless other wise specified, RMB for record in the Statement)
On September 9, 2019, the 10th Meeting of the 2ndBOD and the Fourth Extraordinary Shareholders’
Meeting reviewed and approved the Proposal on the First Stock Issuance Plan of Zhongke Meiling
Cryogenic Technology Co., Ltd. in 2019 (Revised Version), the number of shares to be issued this time
does not exceed 3,907,900 shares (including 3,907,900 shares), the issue price is not less than 2.16 yuan
per share, and the raised funds are expected to not exceed 8,441,064.00 yuan (including 8,441,064.00
yuan). After the completion of the additional issue, the company’s share capital increased to 72,548,200
shares, which was verified by [No. XYZH/2020CDA30002] “Capital Verification Report” issued by Shine
Wing Certified Public Accountants (LLP), and the Company’s shareholding ratio was 63.2683%.
On September 16, 2022, the Management Committee of China Securities Regulatory Commission issued
the Reply on Approving the Registration of Zhongke Meiling Cryogenics Co.,Ltd. to Public Offering of
Shares to Unspecified Qualified Investors (ZJXK [2022] No. 2182), which approved the registration
application of Zhongke Meiling to Public Offering of Shares to Unspecified Qualified Investors. The price
of this issue is RMB 16.00/share, the initial number of shares issued is 24,182,734, and the actual net fund
raised is RMB 364,573,394.95. By September 30, 2022, all the above-mentioned raised funds had been
received and verified by the Capital Verification Report [XYZH/No. 2022CDAA70693] issued by
ShineWing Certified Public Accountants (special general partnership). After the issuance, the share capital
of Zhongke Meiling is 96,730,934 shares, and the shareholding ratio of the Company is 47.4512%.
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. In October 2023, Changhong Air Conditioning and MianyangMeiling
transferred all the shares held by each of them to the Company, and after the transfer, the Company held
100% of the equity of HongmeiIntelligent.
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
96
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024
(Unless other wise specified, RMB for record in the Statement)
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., Ltd., 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) was
established dated 21 January 2019 with registered capital of 10 million yuan, and it is the subsidiary of the
Company with fully-owned establishment. On March 19, 2019 and December 11, 2023, the Company
respectively paid in 6 million yuan and 4 million yuan, with a cumulative capital contribution of 10 million
yuan, accounting for 100% of its registered capital.
6) 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 the joint-venture any more.
7) 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
97
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024
(Unless other wise specified, RMB for record in the Statement)
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.
8) 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.
98
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024
(Unless other wise specified, RMB for record in the Statement)
9) 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%.
In 2017, the shareholder meeting of Zhongshan Changhong Electric Co., Ltd. passed the "Proposal on th
e Company's Increased Investment in Pakistan Refrigerator Project", agreeing that Zhongshan Cha
nghong and the UAE RUBA company will jointly increase the capital of ChanghongRuba. , the shares h
eld by both parties remain unchanged. After the capital increase, the registered capital of ChanghongRu
ba is US$13,004,923, of which Zhongshan Changhong contributed US$7,802,954 in cash, holding 60%
of the shares, and RUBA of the United Arab Emirates contributed US$5,201,969 in cash, holding 40% o
f the shares.
10) 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%.
11) 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
99
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024
(Unless other wise specified, RMB for record in the Statement)
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. 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.
12) 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.
13) Meiling EquatorHousehold Appliance (Hefei) Co., Ltd. (hereinafter referred to as EquatorHousehold
Appliance) was the Sino-foreign joint venture jointly set up by original Meiling Group and EQUATOR
INVESTMENTS (USA) INC. (EQUATOR 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
100
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024
(Unless other wise specified, RMB for record in the Statement)
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.
14) 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 total registered capital. The investment being verified by
[WYAZ (2004) No. 135] from Anhui Yongan CPAs Co., Ltd.
15) 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. In September 2023, Hengyouyuan Technology Development
Group Co., Ltd. transferred its 34% equity of Hongyuan Dineng to Changhong Air Conditioning. After the
transfer, Changhong Air Conditioning held 85% equity of Hongyuan Dineng.
16) 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
17)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
18) 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.
19) 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. On May 21, 2020 and February 21, 2021, Zhongke Meiling invested
RMB 5 million, with a total investment of RMB 10 million, accounting for 100% of its registered capital.
20) 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,
21) Hefei Changhong Meiling Life Appliances Co., Ltd（hereinafter referred to as Changmei Life
Appliances) was established on 24 December 2020, jointly established by the Company and Ningbo
Hongling Enterprise Management Partnership (Limited Partnership). the Company contributed 35 million
101
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024
(Unless other wise specified, RMB for record in the Statement)
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 paid-in capital contribution
from the Company and Ningbo Hongling Enterprise Management Partnership (Limited Partnership) has
been completed on January 21, 2021 and on January 18, 2021 respectively.
22) Anhui Ling’an Medical Equipment Co., Ltd. (hereinafter referred to as Ling’an Medical) was
established on 4 September 2021, which is a wholly-owned subsidiary of Zhongke Meiling, and registered
capital of 10 million yuan. On June 29, 2021, Zhongke Meiling actually contributed 10 million yuan,
accounting for 100% of the registered capital. In 2022, the Board of Directors of Zhongke Meiling decided
to increase the registered capital by RMB 40 million. On December 30, 2022, the paid-in capital was
completed, and the registered capital of Ling'an Medical increased to RMB 50 million.
23)Sichuan Changhong Intelligent Air Conditioning Technology Co., Ltd. (hereinafter referred to as
Intelligent Air Conditioning) was established on March 26, 2024, and is a wholly-owned subsidiary of
Changhong Air Conditioning approved by the Administration for Industry and Commerce of the Economic
Development Zone of Mianyang City, Sichuan Province. The registered capital ofIntelligent Air
Conditioning is 100 million yuan, and ChanghongAir Conditioning subscribes 100 million yuan in cash,
accounting for 100% of its registered capital.
(2) Major non-wholly-owned subsidiary
Dividend distributed
Shareholding Gains/losses attributable to to minority Balance of minority’s
Subsidiary
ratio of minority minority in Current Period announced in interest at period-end
Current Period
Zhongke Meiling 52.5488% 5,479,149.04 5,083,093.40 316,890,194.97
Ground Energy 15% -698,820.06 9363421.96
Ridian Technology 0.9639% 6,533.89 1,371,877.47
Changmei Life
30% 4,132,440.52 46,070,495.34
Appliances
(3) Financial information for major non-wholly-owned subsidiary
Ending balance
Subsidiary Current Non-current Current Non-current Total
Total assets
assets assets liability liability liabilities
Zhongke
Meiling
600,009,169.66 137,688,171.59 737,697,341.25 123,327,726.79 11,329,651.94 134,657,378.73
Ground Energy 635,691,815.29 123359689.6 759,051,504.91 615,327,307.17 81,301,384.64 696,628,691.81
Ridian
Technology
228,124,402.47 38,562,930.44 266,687,332.91 124,093,006.53 262,038.83 124,355,045.36
Changmei Life
Appliances
680,049,639.98 1,288,189.39 681,337,829.37 526,712,221.39 1,057,290.18 527,769,511.57
（Continued）
Beginning balance
Subsidiary Current Non-current Current Non-current Total
Total assets
assets assets liability liability liabilities
Zhongke
590,872,333.93 143,608,411.32 734,480,745.25 120,874,302.44 12,086,470.45 132,960,772.89
Meiling
Ground Energy 256,060,078.76 27,234,236.22 283,294,314.98 216,616,587.41 2,400.97 216,618,988.38
Ridian
226,657,040.82 40,283,953.89 266,940,994.71 125,655,866.42 292,501.04 125,948,367.46
Technology
102
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024
(Unless other wise specified, RMB for record in the Statement)
Beginning balance
Subsidiary Current Non-current Current Non-current Total
Total assets
assets assets liability liability liabilities
Changmei Life
621,873,116.90 613,240.68 622,486,357.58 481,523,383.11 1,169,458.41 482,692,841.52
Appliances
（Continued）
Current Period
Subsidiary Total comprehensive Cash flow from
Operation income Net profit
income operation activity
Zhongke Meiling 147,052,294.25 10,426,784.69 10,426,784.69 2,863,688.61
Ground Energy 861,624,361.40 -4,658,800.38 -4,658,800.38 -74,764,271.86
Ridian Technology 68,792,446.53 677,890.37 677,890.37 6,073,100.72
Changmei Life
Appliances
680,109,991.85 13,774,801.74 13,774,801.74 80,971,196.73
（Continued）
Last Period
Subsidiary Total comprehensive Cash flow from
Operation income Net profit
income operation activity
Zhongke Meiling 144,766,155.52 8,290,186.98 8,290,186.98 -13,661,569.66
Ground Energy 276,522,437.81 -1,914,885.50 -1,914,885.50 -87,545,869.73
Ridian Technology 105,403,861.00 -1,894,959.92 -1,894,959.92 10,295,047.76
Changmei Life
775,737,017.98 23,764,641.11 23,764,641.11 50,850,277.81
Appliances
(4) Major limitation on using enterprise group’s assets and liquidate debts of enterprise group: N/A
(5) Offering financial supporting or other supports for structured entity that included in consolidation
statement scope: N/A
2. Changes of owner’ equity shares in subsidiary and its impacts:N/A
3. Equity in joint venture or associate enterprise
(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 Direct Indire joint venture or
place
ly ctly associate
enterprise
Associated companies：
Sichuan Zhiyijia Network Technology Mianyan Mianya
Sales 50.00 Equity
Co., Ltd. g ng
(2) Financial information for major Joint venture: N/A
(3) Financial information for associate enterprise
Sichuan Zhiyijia Network Technology Co., Ltd.
Item
Ending balance/Current Year Beginning balance /Last Year
Current assets 2,362,423,884.13 2,466,521,759.37
Including: cash and cash equivalent 349,094,285.64 364,453,302.32
103
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024
(Unless other wise specified, RMB for record in the Statement)
Sichuan Zhiyijia Network Technology Co., Ltd.
Item
Ending balance/Current Year Beginning balance /Last Year
Non-current assets 14,610,854.09 18,519,147.09
Total assets 2,377,034,738.22 2,485,040,906.46
Current liability 2,235,601,330.93 2,343,467,271.81
Non-current liability 3,718,006.48 5,509,063.82
Total liabilities 2,239,319,337.41 2,348,976,335.63
Total of net asset 137,715,400.81 136,064,570.83
Minority's interest
Equity attributable to shareholder
137,715,400.81 136,064,570.83
of parent company
Share of net assets measured by
68,857,700.41 68,032,285.42
shareholding
Adjustment
--Goodwill 821,877.28 821,877.28
Unrealized profit of the internal
downstream transactions
Unrealized profit of the internal
upstream transactions
Other
Book value of the equity
69,679,577.69 68,854,162.70
investment for associate enterprise
Fair value of equity investment for
the affiliates with consideration
publicly
Operation income 259,097,941.96 5,238,453,286.91
Financial expenses -14,120,619.54 -19,188,756.89
Income tax expenses 2,309,955.97 3,112,952.18
Net profit 11,846,311.80 23,268,872.28
Other
Other comprehensive income
Total comprehensive income 11,846,311.80 23,268,872.28
Dividend received from associate
5,097,740.91 1,629,022.64
enterprise in Current Year
(4) Financial summary for non-important Joint venture and associate enterprise
Item Ending balance/Current Year Beginning balance /Last Year
Associated companies：
Total book value of investment 43,020,010.11 43,891,649.05
Total amount measured by shareholding ratio
--Net profit -656,570.61 -33,658,934.21
--Other comprehensive income -1,267,004.52 7,582,766.35
-- Total comprehensive income -1,923,575.13 -26,076,167.86
(5) Major limitation on capital transfer ability to the Company from joint venture or affiliates: N/A
104
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024
(Unless other wise specified, RMB for record in the Statement)
(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: N/A
(8) Intangible liability with joint venture or affiliates investment concerned: N/A
4. Major conduct joint operation: N/A
5. Structured body excluding in consolidate financial statement: N/A
IX.Government subsidies
1.There is no government subsidies recognized by amount receivable at the end of the year
2.Liabilities involving government subsidies
Amount
Accou included Amount Other Related
New subsidy
nting Beginning in non- transferred to chang to
amount this Ending balance
subjec balance operatin other income es this assets/in
year
t g income this year year come
this year
Deferr
ed Asset-
132,977,494.33 2,034,900.00 15,529,786.63 119,482,607.70 related
incom
e
Deferr
ed Income-
300,000.00 300,000.00 related
incom
e
3.Government subsidies included in current profits and losses
Accounting subject Amount incurred this period Amount incurred last period
Other income 14,244,752.48 16,631,531.99
Deferred income 15,829,786.63 15,696,724.67
X. Relevant risks re la ted w ith financial in strument
The major financial instruments of the Company include borrowings, account receivables, account
payable, Trading financial assets, Trading financial liability, the details of which are set out in Note
VI.Risks related to these financial instruments include exchange risks and interest rate risks. The
management of the Company controls and monitors the risk exposures to ensure the above risks are
under control.
1. Various risk management objectives and policies
The Company's goal in risk management is to strike a proper balance between risks and benefits, reduce
the negative impact of risks on the Company's operating performance to the lowest level, and maximize
the interests of shareholders and other equity investors. Based on this risk management goal, the basic
strategy of the Company's risk management is to identify and analyze all kinds of risks faced by the
105
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024
(Unless other wise specified, RMB for record in the Statement)
Company, establish an appropriate risk tolerance bottom line and conduct risk management, and timely
and reliably supervise all kinds of risks to control the risks within a limited range.
(1) Market risk
1) Exchange rate risk
The Company pays close attention to the impact of exchange rate changes on the Company. The
Company attaches great importance to the study of exchange rate risk management policies and
strategies. In order to avoid the exchange rate risk of foreign currency payment and foreign currency
collection and settlement income, the Company has signed several forward foreign exchange contracts
with banks. The fair value of forward foreign exchange contracts recognized as derivative financial
instruments on June 30, 2024 is RMB -38,152,637.91 Changes in the fair value of derivative financial
instruments have been included in the profit and loss, and the relevant contents of "V. 57 Income from
changes in fair value" in this note. In the meantime, with the constant change in the share of the
international market, if there are risks beyond the control of the Company, such as unilateral large
changes in the RMB exchange rate, the Company will reduce the risks by adjusting the sales or
purchasing strategies.
2) Interest rate risk
The Company's interest rate risk arises from bank loans and interest-bearing debts. Financial liabilities
with floating interest rate expose the Company to cash flow interest rate risk, while financial liabilities
with fixed interest rate expose the Company to fair value interest rate risk. The Company decides the
relative proportion of fixed interest rate and floating interest rate contracts according to the market
environment at that time. On June 30, 2024, the Company's interest-bearing debts were mainly the fixed-
rate loan contracts denominated in RMB, with a total amount of RMB1,145,328,642.91; and the RMB
floating-rate loan contracts, with a total amount of RMB134,213,427.90 The Company's risk of changes
in the fair value of financial instruments due to changes in interest rates is mainly related to fixed-rate
bank loans. The Company's risk of cash flow changes of financial instruments caused by interest rate
changes is mainly related to floating interest rate bank loans. The Company pays close attention to the
impact of this part of interest rate changes on the Company and attaches importance to the study of
interest rate risk management policies and strategies.
(2) Credit risk
On June 30, 2024, the biggest credit risk exposure that may cause the financial loss of the Company
mainly comes from the loss of the Company's financial assets caused by the failure of the other party to
the contract and the financial guarantee undertaken by the Company, including: the book amount of the
financial assets recognized in the consolidated balance sheet; For financial instruments measured at fair
value, the book value reflects their risk exposure, but not the maximum risk exposure, and its maximum
risk exposure will change with the change of fair value in the future. In order to reduce the credit risk,
the Company set up a special department to determine the credit line, conduct credit approval, and
implement other monitoring procedures to ensure that necessary measures are taken to recover overdue
creditor's rights. Meanwhile, the Company tries to reduce the impact of credit default of creditor's rights
by purchasing credit insurance. In addition, the Company reviews the recovery of each single receivable
on each balance sheet date to ensure that sufficient bad debt provision is made for unrecoverable funds.
Therefore, the management of the Company believes that the credit risk assumed by the Company has
been greatly reduced. The Company's working capital is deposited in the finance company, so the credit
106
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024
(Unless other wise specified, RMB for record in the Statement)
risk of working capital is low. The Company has adopted necessary policies to ensure that all sales
customers have good credit records. The total amount of the top five accounts receivable is
RMB1,047,848,385.72, accounting for 41.90% of the accounts receivable at the end of the year, which
is dependent on major customers. Except for the top five accounts receivable, the Company has no other
major credit risks.
(3) Liquidity risk
Liquidity risk is the risk that the Company cannot fulfill its financial obligations on the due date. The
Company's method of managing liquidity risk is to ensure that there is enough financial liquidity to
fulfill the due debts through capital plan management, without causing unacceptable losses or damaging
the reputation of the company. According to the requirements of the capital plan cycle, the Company
makes a capital plan in advance to ensure that there is sufficient capital when the debt is due. The
management of the Company monitors the use of bank loans and ensures compliance with the loan
agreement. In the meantime, it conducts financing negotiations with financial institutions to maintain a
certain credit line and reduce liquidity risk.
2.Hedging
(1)The Company carries out hedging business and risk management
The Company mainly uses forward foreign exchange contracts to hedge the risk of exchange rate
fluctuations. The Company designates the purchased forward foreign exchange contracts as hedging
instruments, treats them in accordance with the hedge accounting method, and evaluates the hedged
items of unconfirmed asset liability itemssuch as unrecognized fixed commitments at the balance sheet
date. The Company uses the ratio analysis method to evaluate the effectiveness of the hedge, and
considers that it is highly effective, and the amount of hedge invalidity recognized in the current period
is not material.
Corresponding Qualitative The economic The impact of the
Expected effective
risk and relationship between corresponding
achievement of risk
Item management quantitative the hedged item and hedging activity
management
strategies and information the related hedging on the risk
objectives
objectives on hedged risk instrument exposure
Forward foreign Foreign exchange
exchange contracts hedging refers to
are hedging the risk
According to the
instruments that are management
hedge accounting
The extent to locked based on the activity of
standards, in order
which changes foreign exchange designating a
to ensure the
in the fair exposure generated financial
effectiveness of
A foreign value of the by the business: instrument as a
hedging, the
exchange risk hedging foreign exchange hedging instrument
premise of
Forward prevention instrument can exposures include in order to manage
exposure hedging
foreign strategy with offset the book assets and the risk exposure
is that the
exchange hedging as the change in the irrevocable orders. arising from
currency is the
contracts core and risk fair value or Irrevocable orders, foreign exchange
same, the direction
prevention as cash flows of which are defined risk, so that the fair
is opposite, and
the purpose the hedged commitments that value or cash flow
the expected date
item caused have not yet been of the hedging
of receipt and
by the hedged confirmed; Not yet instrument changes
payment of
risk recognized, which in anticipation of
foreign exchange
means that it has not offsetting all or
is similar
been recognized in part of the change
the balance sheet; A in the fair value or
firm commitment cash flow of the
107
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024
(Unless other wise specified, RMB for record in the Statement)
refers to the hedged item
exchange of a
specific amount of
resources at an
agreed price and the
signing of a legally
binding agreement at
a specific date or
period in the future
(2) The Company conducts qualified hedging business and applies hedge accounting
Hedging
adjustment of Impact of
Book value accumulated fair Hedging hedging
related to hedged value of hedged effectiveness and accounting on
Item
items and hedging items included in source of part with the Company's
instruments the book value of invalid hedging financial
hedged items statements
recognized
Fair value hedging
Hedging instruments- Trading
8,754,120.65 Financial
financial assets expenses -
Exchange losses;
Hedging instruments- Trading Investment
46,906,758.56 income; -48,267,891.22
financial liabilities
Change of income
hedged items-assets 911,457,632.30
fair value
hedged items-liabilities 9,583,813.66
3.Transfer of financial assets
(1)Classification of transfer modes
Nature of
Amount of transferred Derecognize
Transfer mode transferred Judgment basis of derecognition
financial assets d or not
financial assets
Notes
endorsement/ Receivable Derecognize Almost all its risks and rewards have
Notes financing
1,004,594,022.03 d been transferred
discount
Accounts Derecognize Almost all its risks and rewards have
Factoring 4,278,022,889.80 d
receivable been transferred
Total 5,282,616,911.83
(2)Financial assets that are derecognized due to transfer
Ways of financial assets Amount of financial assets Gains or losses related to
Item
transfer derecognized derecognition
Notes endorsement/Notes
Receivable financing 1,004,594,022.03 -3,114,432.51
discount
Accounts receivable Factoring 4,278,022,889.80 -24,604,289.53
Total — 5,282,616,911.83 -27,718,722.04
(3) Financial assets that continue to be involved in asset transfer: N/A
108
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024
(Unless other wise specified, RMB for record in the Statement)
XI. Fa ir va lue d isclo sure
1. Asset and liability measured by fair value at end of Current Period and fair value measurement level
Fair value at period-end
Items
1st level 2nd level 3rd level Total
I. Continuous fair value
measurement
— — — —
(i) Trading financial assets 8,754,120.65 1,082,265,872.48 1,091,019,993.13
1.Financial assets measured at fair
value and whose changes are 8,754,120.65 1,082,265,872.48 1,091,019,993.13
included in current gains/losses
Including: Derivative financial
assets
8,754,120.65 8,754,120.65
Principal and interest of financial
products 1,082,265,872.48 1,082,265,872.48
(ii) Other non-current financial
assets 105,194,079.19 568,945,436.29 674,139,515.48
(iii) Receivables financing 1,600,373,357.87 1,600,373,357.87
Total assets continuously
measured at fair value 8,754,120.65 1,187,459,951.67 2,169,318,794.16 3,365,532,866.48
(iv) Trading financial liability 46,906,758.56 46,906,758.56
1. Financial liabilities measured
by fair value and with variation 46,906,758.56 46,906,758.56
reckoned into current gains/losses
Including: Derivative financial
liability
46,906,758.56 46,906,758.56
Total liabilities continuously
measured at fair value 46,906,758.56 46,906,758.56
2. The basis for determining the market price of continuous and non-continuous first-level fair value
measurement items
The company's fair value measurement items are futures contracts and foreign exchange options. The
market price of futures contracts is determined based on the closing price of the futures contract at the end
of the period; the market price of foreign exchange options is determined based on the quotation of contract
products of the foreign exchange options at the end of the period.
3. Qualitative and quantitative information on the valuation techniques used and important parameters for
continuous and non-continuous second-level fair value measurement items
The fair value measurement items are long-term investments in the fund company. For long-term
investments in fund companies, the assessed book value can represent the best estimate of fair value within
the scope.
4. Qualitative and quantitative information on the valuation techniques used and important parameters for
continuous and non-continuous third-level fair value measurement items
The items with fair value measurement refer 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.
109
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024
(Unless other wise specified, RMB for record in the Statement)
XII. Rela ted par ties a nd rela ted transa ction
(i) Relationship of related parties
1. Controlling shareholder and ultimate controller
(1) Controlling shareholder and ultimate controller
Share- Voting
Registra
Controlling shareholder and ultimate Business holding rights ratio
tion Registered capital
controller nature ratio in the in the
place
Company Company
Sichuan Changhong Electric Co., Mianya Manufacture
4,616,244,222.00 27.36% 27.36%
Ltd. ng and sales
Sichuan Changhong Electronics Holding Group is the controlling shareholder of Sichuan Changhong
Electric Co., Ltd, and the SASAC Mianyang office holds 90% equity interests of Sichuan Changhong
Electronic Holding Group, which means that SASAC Mianyang office is the ultimate controller of the
Company.
(2) Register capital and change thereof of controlling shareholder
Increase this Decrease
Controlling shareholder Beginning balance Ending balance
period this period
Sichuan Changhong Electric Co., Ltd. 4,616,244,222.00 4,616,244,222.00
(3) Shares held by the controlling shareholder and its changes on equity
Amount of shares held Shareholding ratio
Controlling shareholder Ratio at Ratio at period-
Ending balance Beginning balance
period-end beginning
Sichuan Changhong Electric Co., Ltd. 281,832,434.00 281,832,434.00 27.36% 27.36%
2. Subsidiary
Found more in Note “VIII. 1 (1) Enterprise group composition”
3. Joint venture and associated enterprise
Other Joint venture and associated enterprise that have related transactions occurred with the
Company in Current Period or occurred in last period, and with balance results:
Joint venture and associated enterprise Relationship with the company
Changhong Ruba Electric Company (Private) Ltd. Associated enterprise of subsidiary Zhongshan Changhong
Associated enterprise of subsidiary Changhong Air-
Chengdu Guigu Environmental Tech. Co., Ltd
conditioner
Associated enterprise of subsidiary Changhong Air-
Sichuan Tianyou Guigu Technology Co., Ltd
conditioner
Associated enterprise of the Company, has the same
Sichuan Zhiyijia Network Technology Co., Ltd.
controlling shareholder and actual control of the Company
4. Other related party
Other related party Relationship with the company
Mianyang Haili Appliance Co., Ltd. Associated enterprise of controlling shareholder
Sichuan Hongran Green Energy Co., Ltd. Associated enterprise of controlling shareholder
Sichuan Changxin Refrigeration Parts Co., Ltd. Associated enterprise of controlling shareholder
Sichuan Baiku Technology Co., Ltd Associated enterprise of other enterprise that have the same
110
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024
(Unless other wise specified, RMB for record in the Statement)
Other related party Relationship with the company
controlling shareholder
Associated enterprise of other enterprise that have the same
Sichuan Hongyu Metal Manufacturing Co., Ltd.
controlling shareholder
An enterprise in which the supervisor of the controlling
Mianyang High-tech Zone Hongfu Technology Co., Ltd.
shareholder acts as its legel representative
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
Control by same controlling shareholder and ultimate
CHANGHONG (HK) TRADING LIMITED
controller
Control by same controlling shareholder and ultimate
CHANGHONG.ELECTRIC.(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
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
Guangyuan Changhong Electronic Technology Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Hefei Changhong Industrial Co., Ltd.
controller
Control by same controlling shareholder and ultimate
081 Electronic Group Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Mianyang Hongshang Real Estate Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Mianyang Huafeng Hulian 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 Ansifei Technology Co., Ltd.
controller
Associated enterprise of other enterprise that have the same
Sichuan Aoiku Technology Co., Ltd
controlling shareholder
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
Control by same controlling shareholder and ultimate
Sichuan Huafeng Technology Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Sichuan Jiahong Industry Co., Ltd.
controller
Sichuan Kuaiyidian Electric 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
Control by same controlling shareholder and ultimate
Sichuan Qisai Microelectronics Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Sichuan Changhong Package Printing Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Sichuan Changhong Power Source Co., Ltd.
controller
111
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024
(Unless other wise specified, RMB for record in the Statement)
Other related party Relationship with the company
Control by same controlling shareholder and ultimate
Sichuan Changhong Electronic Products 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
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 Jiahua Information Co., Ltd.
controller
Sichuan Changhong Jichuang Lithium Technology Co., Control by same controlling shareholder and ultimate
LTD controller
Control by same controlling shareholder and ultimate
Sichuan Changhong Precision Electronics Tech. Co., 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 Moulding Tech. 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
Control by same controlling shareholder and ultimate
Sichuan Changhong New Energy Technology Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Sichuan Changhong Xinwang Technology Co., Ltd.
controller
Sichuan Changhong Intelligent Manufacturing Control by same controlling shareholder and ultimate
Technology Co., Ltd. controller
Control by same controlling shareholder and ultimate
Sichuan Changhong Real Estate Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Yuanxin Financial Lease Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Changhong International Holdings (Hong Kong) Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Yibin Hongxing Electric Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Sichuan Qineng Zhongzheng TechnologyCo., ltd.
controller
Control by same controlling shareholder and ultimate
Changhua Huayi Compressor Co., Ltd.
controller
(ii) Related transactions
1. Purchasing commodity
Approved
tradingquota
Current Whether Last period
（（In 10
Period the
thousand
Related party Content trading
yuan)
inmit is
（In 10 （In 10 exceeded
thousand thousand （In 10 thousand yuan)
yuan) yuan
Sichuan Changhong Electric HoldingGroup Purchasing N
Co., Ltd. commodity
116,368.50 280,000.00
Purchasing N
Sichuan Changhong Moulding Tech. Co., Ltd. 59,341.49 130,000.00 47,227.00
commodity
112
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024
(Unless other wise specified, RMB for record in the Statement)
Approved
tradingquota
Current Whether Last period
（（In 10
Period the
thousand
Related party Content trading
yuan)
inmit is
（In 10 （In 10 exceeded
thousand thousand （In 10 thousand yuan)
yuan) yuan
Purchasing N
Sichuan Changhong Jijia Fine Co., Ltd. 40,976.08 65,000.00 29,862.39
commodity
Sichuan Changxin Refrigeration Parts Co., Purchasing
Ltd. commodity
40,618.06 40,002.29
Purchasing
Mianyang Highly Electric Co., Ltd. 36,505.44 25,317.48
commodity
Purchasing N
Changhong Huayi Compressor Co., Ltd. 29,660.37 80,000.00 25,980.62
commodity
Sichuan Changhong Package Printing Co., Purchasing N
Ltd. commodity
8,727.99 20,000.00 6,932.79
Sichuan Aichuang Science & Technology Co., Purchasing N
Ltd. commodity
7,397.51 30,000.00 7,075.57
Purchasing N
Sichuan Changhong Electronic Co., Ltd. 6,217.87 23,000.00 21,647.30
commodity
Sichuan Changhong Precision Electronics Purchasing N
Tech. Co., Ltd. commodity
1,976.06 4,000.00 1,776.19
Sichuan Changhong Electronic Products Co., Purchasing N
Ltd. commodity
1,485.08 5,000.00 2,034.05
Purchasing N
Sichuan Aoku Technology Co., Ltd. 1,458.92 8,000.00 1,155.21
commodity
Purchasing N
Sichuan Ailink Technology Co., Ltd. 777.61 3,000.00 868.04
commodity
Purchasing N
Guangdong Changhong Electronics Co., Ltd. 542.44 6,000.00 400.10
commodity
Sichuan Changhong Precision Electronics Purchasing N
Tech. Co., Ltd. commodity
454.57 6,000.00 559.39
Changhong International Holdings (Hong Purchasing N
Kong) Co., Ltd. commodity
432.77 16,000.00 1,538.32
Purchasing N
Hefei Changhong Industrial Co., Ltd. 403.79 6,000.00 385.14
commodity
ChanghongRuba Electric Company (Private) Purchasing
Ltd. commodity
201.38 1,110.98
Sichuan Zhiyijia Network Technology Co., Purchasing
Ltd. commodity
160.02 6,000.00 N 461.50
Purchasing
Sichuan Hongran Green Energy Co., Ltd. 70.68 90.89
commodity
Sichuan Changhong New Energy Technology Purchasing N
Co., Ltd. commodity
41.58 5,000.00 2.40
Purchasing N
Sichuan Hongwei Technology Co., Ltd. 1.42 6,000.00 4.06
commodity
Sichuan Changhong Intelligent Purchasing
Manufacturing Technology Co., Ltd. commodity
0.49 5,000.00 N 0.05
Purchasing
081 Electronic Group Co., Ltd. 5.30
commodity
Sichuan Hongyu Metal Manufacturing Co., Purchasing
Ltd. commodity
1.47
Purchasing
Sichuan Jiahong Industrial Co., Ltd. 0.33
commodity
Sichuan Service Exp. Appliance Service Purchasing
Chain Co., Ltd. commodity
0.18
Purchasing
Sichuan Changhong Source Co., Ltd. 0.18
commodity
Total 353,820.12 704,000.00 214,439.22
113
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024
(Unless other wise specified, RMB for record in the Statement)
2. Accept the services
Whether
the
Approved trading
Related party Content Current Period trading Last Period
quota
limit is
exceeded
Sichuan Changhong Minsheng Accept the N
456,703,052.23 750,000,000.00 368,497,783.26
Logistics Co., Ltd. services
Sichuan Service Exp. Appliance Accept the N
196,911,290.80 510,000,000.00 180,747,221.09
Service Chain Co., Ltd. services
Sichuan Changhong Moulding Tech. Accept the N
22,376,331.56 50,000,000.00 19,178,221.81
Co., Ltd. services
Sichuan Qiruik Technology Co., Ltd. Accept the N
6,919,202.18 50,000,000.00 5,854,992.14
services
Accept the N
Sichuan Jiahong Industry Co., Ltd. 3,449,141.57 50,000,000.00 4,181,446.86
services
Sichuan Changxin Refirgeration Part Accept the
2,101,818.01 1,443,843.02
Co., Ltd. services
Accept the N
Sichuan Changhong Electric Co., Ltd. 1,892,321.90 50,000,000.00 2,012,125.83
services
Sichuan Changhong Jijia Fine Co., Accept the N
1,253,524.26 50,000,000.00 1,585,419.16
Ltd. services
Accept the N
Sichuan Hongxin Software Co., Ltd. 1,147,485.86 50,000,000.00 763,205.18
services
Sichuan Changhong International Accept the N
883,842.53 50,000,000.00 81,164.57
Hotel Co., Ltd. services
Mianyang High-tech Zone Hongfu Accept the N
682,378.32 1,200,000.00 454,323.56
Technology Co., Ltd. services
Sichuang Changhong Electric Accept the N
667,435.36 2,800,000,000.00 455,179.68
Holdings Group Co., Ltd. services
Sichuan Changhong Precision Accept the N
Electronic Technology Co., Ltd. services
178,134.60 50,000,000.00
Guangyuan Changhong Electric Co., Accept the N
169,707.88 50,000,000.00 361,166.90
Ltd. services
Sichuan Zhiyijia Network Technology Accept the N
77,108.12 50,000,000.00 69,357.35
Co., Ltd services
Sichuan Changhong Property Service Accept the N
58,338.54 50,000,000.00 73,423.50
Co., Ltd. services
Sichuan Changhong Gerun Accept the N
54,051.42 50,000,000.00 202,167.22
Environmental Technology Co., Ltd. services
Sichuan Changhong Electric Part Co., Accept the N
34,147.70 50,000,000.00 162,049.81
Ltd. services
Sichuan Changhong Network Accept the N
Technology Co., Ltd. services
733.94 50,000,000.00
Sichuan Changhong Intelligent Accept the N
50,000,000.00 94,339.62
Manufacturing Technology Co., Ltd. services
Sichuan Aichuang Technology Co., Accept the
Ltd. services
-59,982.26 50,000,000.00 N
Total 695,500,064.52 4,861,200,000.00 586,217,430.56
3. Sales of goods
Current Period Last Period
Related party Content (in 10 thousand (in 10 thousand
Yuan) Yuan)
Sales of
Sichuan Zhiyijia Network Technolgy Co., Ltd. 381,470.50 375,670.47
goods
Sales of
CHANGHONG(HK)TRADINGLIMITED 23,462.80 38,739.78
goods
114
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024
(Unless other wise specified, RMB for record in the Statement)
Sales of
CHANGHONG.ELECTRIC.(AUSTRALIA) PTY.LTD. 13,731.67 5,714.99
goods
Sales of
Changhong International Holdings (Hong Kong) Co., Ltd. 7,047.95 5,017.47
goods
Sales of
Changhong Europe Electric s.r.o 3,386.81 4,109.31
goods
Sales of
Orion.PDP.Co.,ltd 2,058.89 1,964.81
goods
Sales of
Sichuan Service Exp. Appliance Service Chain Co., Ltd. 217.07 253.80
goods
Sales of
Sichuan Changhong Jijia Fine Co., Ltd. 84.74 0
goods
Sales of
Sichuan Changhong Appliance Technology Co., Ltd. 80.90 4.05
goods
Sales of
Sichuan Changhong Minsheng Logistics Co., Ltd. 77.98 44.03
goods
Sales of
Sichuan Changhong Electronic Co., Ltd. 49.79 30.23
goods
Sales of
Sichuan Changhong Jiahua Information Product Co., Ltd. 43.24
goods
Sales of
Mianyang Huafeng Hulian Technoology Co., Ltd. 41.59
goods
Sales of
Sichuan Changhong Model Technology Co., Ltd. 38.38 57.00
goods
Sales of
Chengdu Guigu Environment Technology Co., Ltd. 29.05 18.32
goods
Sales of
Sichuan Aoku Technology Co., Ltd. 19.23 0.77
goods
Sales of
Sichuan Changhong Network Technology Co., Ltd 7.54
goods
Sales of
Sichuan Ailian Technology Co., Ltd. 4.95
goods
Sales of
Sichuan Baiku Technology Co., Ltd. 2.25 9.61
goods
Sales of
Sichuan Changhong Real Estate Co., Ltd. 1.44
goods
Sales of
Mianyang Hongsheng Real Estate Co., Ltd. 0.72
goods
Sales of
Sichuan Aichuang Technology Co., Ltd. 0.53 0.73
goods
Sales of
Sichuan Changhong Power Source Co., Ltd. 0.30 5.46
goods
Sales of
Sichuan Changhong International Hotal Co., Ltd. 0.11
goods
Sales of
Sichuan Changhong Intelligent Manufacturing Technology Co., Ltd. 258.76
goods
Sales of
Sichuan Tianyou Guigu Technology Co., Ltd. 94.29
goods
Sales of
Guangyuan Changhong Electric Technology Co., Ltd. 22.45
goods
Sales of
Guangdong Changhong Electric Co., Ltd. 7.23
goods
Sales of
Sichuan Hongmofang Network Technology Co., Ltd. 4.33
goods
Sales of
Sichuan Qisai Microelectronics Co.,Ltd. 4.99
goods
Sales of
Sichuan Changhong Electric Holdings Group Co., Ltd. 0.26
goods
Sales of
Sichuan Qiruik Technology Co., Ltd. 0.23
goods
Sales of
Sichuan Ansifei Technology Co., Ltd. 0.01
goods
115
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024
(Unless other wise specified, RMB for record in the Statement)
Total 431,858.43 432,033.38
4. Providing services
Related party Content Current Period Last Period
Provide the
Mianyang Huafeng Hulian Technology Co., Ltd. 3,954,355.82 93,625.64
services
Provide the
Sichuan Service Exp. Appliance Service Chain Co., Ltd. 867,737.06 1,239,722.20
services
Provide the
Sichuan Changhong Moulding Tech. Co., Ltd. 828,156.62 393,122.08
services
Provide the
Sichuan Changhong Device Technology Co., Ltd. 544,959.19 124,018.93
services
Provide the
Yuanxin Financial Lease Co., Ltd. 489,372.07 185,532.18
services
Provide the
Changhong Huayi Compressor Co., Ltd. 276,535.87 116,943.63
services
Provide the
Sichuan Changhong Network Technology Co., Ltd 173,539.62
services
Provide the
Sichuan Changhong Jija Fine Co., Ltd. 141,015.31 58,326.34
services
Provide the
Sichuan Changhong Property Service Co., Ltd. 85,797.50 135,593.96
services
Provide the
Sichuan Zhiyijia Network Technology Co., Ltd. 70,158.00 131,027.58
services
Provide the
Sichuan Aoku Technology Co., Ltd. 50,941.15 1,081.72
services
Provide the
Sichuan Changhong International Hotel Co., Ltd. 26,349.12 31,608.80
services
Provide the
Sichuan Changhong Minsheng Logistics Co., Ltd. 11,427.04 367,086.07
services
Sichuan Changhong Jiechuang Lithium Battery Technology Provide the
Co., Ltd. services
10,912.08
Provide the
Sichuan Ailian Technology Co.,Ltd. 1,586.50 80.94
services
Provide the
Sichuan Qiruik Technology Co., Ltd. 1,446.00 1,314.00
services
Provide the
Sichuan Changhong Electronic Products Co., Ltd. 900.00 4,500.00
services
Provide the
Guangdong Changhong Electronics Co., Ltd. 486,725.66
services
Provide the
Sichuan Hongwei Technology Co., Ltd. 69,735.85
services
Provide the
Sichuan Changhong Precision Electronic Technology Co., Ltd. 2,700.00
services
Provide the
Hefei Changhong Industrial Co., Ltd. 42.50
services
Provide the
Sichuan Qisai Microelectonics Co., Ltd. 44,593.58
services
Provide the
Sichuan Huafeng Technology Co., Ltd. -11,201.00
services
Provide the
Sichuan Changhong Electric Co., Ltd. -52,499.01 28,299.02
services
Provide the
Sichuan Aichuang Technology Co., Ltd, -97,082.07 111,462.81
services
Provide the
Sichuan Changhong New Network Technology Co., Ltd. -101,370.00
services
Total 7,273,036.87 3,627,143.49
116
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024
(Unless other wise specified, RMB for record in the Statement)
Businesses between the Company and its connected persons are generally conducted under market
operation rules as if they were the same as other business counterparties. For price of sale or purchase
and provision of other labor service between the Company and its related parties, the state pricing is
applicable if the pricing do exists; in case of absence of such state pricing, price is determined under
market price; in case of absence of such market price, price is determined by both parties at actual cost
plus reasonable expenses; for some special services, the price of which cannot be determined under the
rule of cost plus expense, the price shall be determined by both parties by negotiation.
5. Related rental
(1) Rent out
Leasing income Leasing income in
Lessor Lessee Type of assets
in Current Period Last Period
Changhong Sichuan Changhong Moulding Tech. Co., Apartments,
999,377.25 1,436,731.33
Meiling Ltd. warehouses, factories
Changhong warehouse, apartment,
Sichuan Changhong Jijia Fine Co., Ltd. 402,946.09 470,897.06
Meiling forklift, warehouse
Changhong Sichuan Aichuang Science & Technology
Apartment, office 126,690.06 84,571.19
Meiling Co., Ltd.
Changhong Sichuan Changhong Minsheng Logistics
Apartment, office 114,850.93 104,497.98
Meiling Co., Ltd.
Changhong Sichuan Zhiyijia Network Technology Co., Apartment Office
94,128.44 94,128.44
Meiling Ltd. building
Changhong
Sichuan Aoku Technology Co., Ltd. Warehouse, Apartment 5,858.10 20,987.63
Meiling
Changhong Apartments,
Hefei Changhong Industrial Co., Ltd. 146,562.74
Meiling warehouses
Changhong Sichuan Aichuang Science & Technology
Warehouse 19,507.00
Meiling Co., Ltd.
Changhong
hanghong Huayi Compressor Co., Ltd. Warehouse 5,811.32
Meiling
Changhong
Sichuan Hongxin Software Co., Ltd. Apartment 4,400.00
Meiling
Changhong
Sichuan Ailian Technology Co., LTD. Warehouse 1,586.50
Meiling
Changhong Sichuan Changhong Precision Electronics
Apartment 1,105.00
Meiling Tech. Co., Ltd.
Changhong Sichuan Changhong Moulding Tech. Co.,
Factories,Equipment 2,927,575.63 2,786,522.82
Air-conditioner Ltd.
Changhong
Sichuan Changhong Jijia Fine Co., Ltd. Factories,Equipment 1,867,409.09 1,831,253.85
Air-conditioner
Changhong
Sichuan Changhong Electric Co., Ltd. Factories,Equipment 429,427.67 448,648.03
Air-conditioner
Changhong Sichuan Changxin Refrigeration Parts Co., Processing equipment
53,333.35 79,999.99
Air-conditioner Ltd. of U
Changhong Chengdu Guigu Environmental Tech. Co.,
House and buildings 14,201.83 14,201.83
Air-conditioner Ltd
Changhong Sichuan Changhong Electronics Holding
Workshop 4.49
Air-conditioner Group Co., Ltd.
Ridian Sichuan Changhong Device Technology
Workshop 1,073,574.84 1,073,574.90
Technology Co., Ltd.
Ridian
Sichuan Qiruik Technology Co., Ltd. Workshop 47,314.29 47,314.29
Technology
Zhongshan Sichuan Changhong Minsheng Logistics Parts of the office
22,148.58 22,148.58
Changhong Co., Ltd. building rent-out
117
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024
(Unless other wise specified, RMB for record in the Statement)
Zhongshan Sichuan Changhong Precision Electronics
living area 42,000.00
Changhong Tech. Co., Ltd.
Zhongshan Sichuan Changhong Moulding Tech. Co.,
living area 24,900.00
Changhong Ltd.
Sichuan Changhong Moulding Tech. Co.,
Jiangxi Meiling Workshop 443546.86 411,144.18
Ltd.
Sichuan Changhong Minsheng Logistics
Jiangxi Meiling Warehouse,Office 9,142.86
Co., Ltd.
Total 8,631,525.87 9,172,499.15
118
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024
(Unless other wise specified, RMB for record in the Statement)
(2)Lessee of related parties
Variable
lease
payments
Rental charges for
not included Interest expenses on
short-term and low- Rent paid Increased use right assets
in lease lease liabilities assumed
value assets (if any)
liabilities
measuremen
t (if any)
Type of Amount of Amount of Amo Amou Amount of Amount of Amount of Amount of Amount of Amount of
Lessor Lessee
assets
current previous unt of nt of current period previous current previous current previous
period period curre previo period period period period period
nt us
perio period
d
Workshop
Hefei Changhong Industrial Co., Ltd. Changhong Meiling 566,866.14 590,931.54 563,322.99 485,439.06
leasing
Sichuan Changhong Electronics
Changhong Air-
Holding Rental 64,694.40 84,747.84 12,815.14 338,991.37
conditioner
Group Co., Ltd.
Changhong Air- VISA
Sichuan Changhong Electric Co., Ltd. 153,431.50 153,431.50 17,157.52 17,157.52 1,534,315.05
conditioner Laboratories
Sichuan Changhong Electric Co., Ltd. Changhong Air- F3 workshop 106,678.90
119
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024
(Unless other wise specified, RMB for record in the Statement)
conditioner
Changhong Air- Staff
Sichuan Jiahong Industrial Co., Ltd. 271,649.52 216,056.16
conditioner dormitory
Guangdong Changhong Electronics Hong yuan Staff
46,289.04 39,530.00
Co., Ltd. Zhongshan dormitory
Chengdu Changhong Electronic
Hongmei Intelligent Office 313,553.36 334,385.06 15,677.67 28,592.17 329,231.03
Technology Co., Ltd.
Workshop
Sichuan Changhong Electric Co., Ltd. Mianyang Meiling 64,519.38 32,259.69 1,039,954.88 1,433,275.56 601,697.08 208,376.40
leasing
Staff
Sichuan Jiahong Industrial Co., Ltd. Mianyang Meiling 15,620.97 16,664.37
dormitory
Changhong Huayi Compressor Co., Staff
Jiangxi Meiling 57,000.00
Ltd. dormitory
Guangdong Changhong Electronics Staff
Ridian Technology 33,749.28 28,660.58
Co., Ltd. dormitory
Chengdu Changhong Electronic
Changmei Intelligent Office 62,618.29
Technology Co., Ltd.
Total 595,507.09 460,483.49 2,158,553.72 2,512,023.66 1,210,670.40 739,565.15 668,222.40 1,534,315.05
120
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024
(Unless other wise specified, RMB for record in the Statement)
6. Related guarantee
Maximum guarantee
amount Completed
Secured party Sponsored party Start Date due
(Y/N)
(in 10 thousand Yuan)
Changhong Meiling Meiling Group 4,500.00 2023/5/11 2024/5/11 Yes
Changhong Meiling Meiling Group 8,000.00 2023/7/12 2024/7/11 No
Changhong Meiling Ridian Technology 4,000.00 2023/7/8 2024/7/8 No
2022/11/1
Changhong Meiling Ridian Technology 3,500.00 2023/11/9 Yes
0
2024/12/2
Changhong Meiling Ridian Technology 3,500.00 2024/2/6 No
8
Changhong Meiling Zhongshan Changhong 15,000.00 2022/8/15 2023/8/14 Yes
Changhong Meiling Zhongshan Changhong 10,000.00 2023/5/30 2024/5/29 No
Changhong Meiling Zhongshan Changhong 6,000.00 2023/3/15 2024/3/15 Yes
Changhong Meiling Zhongshan Changhong 7,000.00 2023/6/15 2024/6/14 Yes
Changhong Meiling Zhongshan Changhong 10,000.00 2023/5/11 2024/5/10 Yes
Changhong Meiling Zhongshan Changhong 15,000.00 2023/8/23 2024/8/23 No
Changhong Meiling Zhongshan Changhong 20,000.00 2023/7/3 2024/7/3 No
Changhong Meiling Zhongshan Changhong 5,000.00 2023/7/28 2024/7/27 No
Changhong Meiling Zhongshan Changhong 10,000.00 2023/5/12 2024/5/12 No
Changhong Meiling Zhongshan Changhong 5,000.00 2023/11/2 2024/11/2 No
Changmei Life 2022/10/2 2023/10/2
Changhong Meiling 5,000.00 Yes
Appliances 6 5
Changmei Life
Changhong Meiling 2,000.00 2023/4/24 2024/4/23 Yes
Appliances
Changmei Life
Changhong Meiling 5,000.00 2024/1/1 2024/8/14 No
Appliances
Changmei Life
Changhong Meiling 8,000.00 2023/2/22 2024/1/12 Tes
Appliances
Changmei Life
Changhong Meiling 8,000.00 2024/1/22 2025/1/22 No
Appliances
Changmei Life
Changhong Meiling 5,000.00 2023/4/21 2024/4/21 No
Appliances
Changmei Life
Changhong Meiling 2,000.00 2023/11/3 2024/11/2 No
Appliances
Changmei Life 2024/11/3
Changhong Meiling 10,000.00 2023/12/1 No
Appliances 0
Changmei Life 2023/12/1
Changhong Meiling 4,000.00 2024/6/4 No
Appliances 5
Changhong air-
Changhong Meiling 60,000.00 2023/3/18 2024/3/18 Yes
conditioner
Changhong air-
Changhong Meiling 12,000.00 2023/4/14 2024/4/13 No
conditioner
Changhong air- 2023/10/1
Changhong Meiling 10,000.00 2023/1/17 Yes
conditioner 1
Changhong air-
Changhong Meiling 5,000.00 2023/1/17 2024/1/16 No
conditioner
Changhong air-
Changhong Meiling 16,000.00 2023/2/27 2024/2/26 Tes
conditioner
Changhong air-
Changhong Meiling 30,000.00 2023/3/16 2024/3/16 No
conditioner
Changhong air- 2023/12/1
Changhong Meiling 1,500.00 2023/7/5 Yes
conditioner 3
Zhongke Meiling Anhui Touxing 1,000.00 2023/6/20 2024/6/4 No
121
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024
(Unless other wise specified, RMB for record in the Statement)
Maximum guarantee
amount Completed
Secured party Sponsored party Start Date due
(Y/N)
(in 10 thousand Yuan)
Zhongke Meiling Anhui Touxing 400.00 2023/8/15 2024/8/14 No
2023/10/2 2024/10/2
Zhongke Meiling Anhui Touxing 1,000.00 No
0 0
Zhongke Meiling Lingan Medical 1,000.00 2023/8/25 2024/8/24 No
2023/10/2 2024/10/2
Zhongke Meiling Lingan Medical 1,000.00 No
0 0
Counter guarrantee：
Meiling Group Changhong Meiling 4,500.00 2023/5/11 2024/5/11 Yes
Meiling Group Changhong Meiling 8,000.00 2023/7/12 2024/7/11 No
Ridian Technology Changhong Meiling 4,000.00 2023/7/8 2024/7/8 No
2022/11/1
Ridian Technology Changhong Meiling 3,500.00 2023/11/9 Yes
0
2024/12/2
Ridian Technology Changhong Meiling 3,500.00 2024/2/6 No
8
Zhongshan Changhong Changhong Meiling 15,000.00 2022/8/15 2023/8/14 Yes
Zhongshan Changhong Changhong Meiling 10,000.00 2023/5/30 2024/5/29 No
Zhongshan Changhong Changhong Meiling 6,000.00 2023/3/15 2024/3/15 Yes
Zhongshan Changhong Changhong Meiling 7,000.00 2023/6/15 2024/6/14 Yes
Zhongshan Changhong Changhong Meiling 10,000.00 2023/5/11 2024/5/10 Yes
Zhongshan Changhong Changhong Meiling 15,000.00 2023/8/23 2024/8/23 No
Zhongshan Changhong Changhong Meiling 20,000.00 2023/7/3 2024/7/3 No
Zhongshan Changhong Changhong Meiling 5,000.00 2023/7/28 2024/7/27 No
Zhongshan Changhong Changhong Meiling 10,000.00 2023/5/12 2024/5/12 No
Zhongshan Changhong Changhong Meiling 5,000.00 2023/11/2 2024/11/2 No
Changmei Life 2022/10/2 2023/10/2
Changhong Meiling 5,000.00 Yes
Appliances 6 5
Changmei Life
Changhong Meiling 2,000.00 2023/4/24 2024/4/23 Yes
Appliances
Changmei Life
Changhong Meiling 5,000.00 2024/1/1 2024/8/14 No
Appliances
Changmei Life
Changhong Meiling 8,000.00 2023/2/22 2024/1/12 Yes
Appliances
Changmei Life
Changhong Meiling 8,000.00 2024/1/22 2025/1/22 No
Appliances
Changmei Life
Changhong Meiling 5,000.00 2023/4/21 2024/4/21 No
Appliances
Changmei Life
Changhong Meiling 2,000.00 2023/11/3 2024/11/2 No
Appliances
Changmei Life 2024/11/3
Changhong Meiling 10,000.00 2023/12/1 No
Appliances 0
Changmei Life 2023/12/1
Changhong Meiling 4,000.00 2024/6/4 No
Appliances 5
Changhong air-
Changhong Meiling 60,000.00 2023/3/18 2024/3/18 Yes
conditioner
Changhong air-
Changhong Meiling 12,000.00 2023/4/14 2024/4/13 No
conditioner
Changhong air- 2023/10/1
Changhong Meiling 10,000.00 2023/1/17 Yes
conditioner 1
Changhong air-
Changhong Meiling 5,000.00 2023/1/17 2024/1/16 No
conditioner
Changhong air-
Changhong Meiling 16,000.00 2023/2/27 2024/2/26 Yes
conditioner
Changhong air- Changhong Meiling 30,000.00 2023/3/16 2024/3/16 No
122
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024
(Unless other wise specified, RMB for record in the Statement)
Maximum guarantee
amount Completed
Secured party Sponsored party Start Date due
(Y/N)
(in 10 thousand Yuan)
conditioner
Changhong air- 2023/12/1
Changhong Meiling 1,500.00 2023/7/5 Yes
conditioner 3
Anhui Tuoxing Zhongke Meiling 1,000.00 2023/6/20 2024/6/4 No
Anhui Tuoxing Zhongke Meiling 400.00 2023/8/15 2024/8/14 No
2023/10/2 2024/10/2
Anhui Tuoxing Zhongke Meiling 1,000.00 No
0 0
Lingan Medical Zhongke Meiling 1,000.00 2023/8/25 2024/8/24 No
2023/10/2 2024/10/2
Lingan Medical Zhongke Meiling 1,000.00 No
0 0
7. Assets transfer and debt reorganization of related parties
Related party Type Current Period Last Period
Construction of fixed
Sichuan Changhong Electric Co., Ltd. 610,665.49
assets
Purchase and
Sichuan Changhong Intelligent Manufacturing
construction of fixed 352,395.49 454,167.32
Technology Co., Ltd.
assets
Purchase and
081 Electronic Group Co., Ltd. 184,634.57
construction
Purchase and
Sichuan Zhiyijia Network Technology Co., Ltd. construction of fixed 78,818.00 15,700.88
assets
Purchase and
Sichuan Hongxin Software Co., Ltd. construction of fixed 902,404.42
assets
Purchase and
Sichuan Qiruik Technology Co., Ltd. construction of fixed 288,000.00
assets
Purchase and
Sichuan Changhong Jiahua In formation Product Co., Ltd. construction of fixed 275,800.17
assets
Purchase and
Sichuan Hongxin Software Co., Ltd. construction of fixed 121115.04
assets
Total 1,226,513.55 2,057,187.83
8.Other
Current Period (in 10 Last Period (in 10 thousand
Name of company Content
thousand Yuan) Yuan)
Yuanxin Financial Lease Co.,
Financing business 56,792.49 27,779.67
Ltd.
9. Related transaction with Changhong Finance Company
(1) Saving balance
Interest income from
Name of company Ending balance Beginning balance
bank saving in the period
Changhong Meiling Co., Ltd. 1,601,681,337.84 2,052,187,201.79 27,680,821.56
Sichuan Changhong Air-conditioner Co., Ltd 1,102,313,364.69 977,689,247.58 7,091,574.11
Zhongshan Changhong Electric Co., Ltd 816,026,341.19 761,905,289.07 8,703,320.84
Hefei Changhong Meiling Life Appliances Co.,
271,654,887.64 243,577,856.45 2,157,552.43
Ltd.
123
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024
(Unless other wise specified, RMB for record in the Statement)
Ground Energy Heat Pump Tech. (Zhongshan)
81,384,980.04 167,225,376.64 1,173,218.85
Co., Ltd.
Zhongke Meiling Cryogenic Technology Co.,
50,081,556.29 60,561,687.38 593,285.38
Ltd
Changhong Meiling Ridian Technology Co., Ltd. 42,390,960.35 56,655,316.22 90,960.04
Anhui Tuoxing Technology Co., Ltd. 7,411,207.54 7,358,942.16 87,613.31
Hefei Meiling Group Holdings Limited 353,192.29 304,516.48 3,399.40
Mianyang Meiling Refrigeration Co., Ltd. 9,586.78 13,743.00 23.13
Anhui Ling'an medical equipment Co., Ltd. 9,283.96 825.26 38.40
Jiangxi Meiling Electric Appliance Co., Ltd. 9,210.82 9,667.64 20.02
Ground Energy Heat Pump Tech. Co., Ltd. 0.43
Total 3,973,325,909.43 4,327,489,669.67 47,581,827.90
(2) Discounted bills
Name of company Bank acceptance Bank acceptance Discounting fees
Sichuan Changhong Air Conditioning
Co., Ltd
281,027,530.72 279,951,182.65 1,076,348.07
Changhong Meiling Co., Ltd. 257,740,577.09 256,054,793.87 1,685,783.22
Hefei Changhong Meiling Life
Appliances Co., Ltd.
69,759,487.32 69,380,572.37 378,914.95
Changhong Meiling Ridian Technology
Co., Ltd.
7,539,519.04 7,503,749.88 35,769.16
Zhongshan Changhong Electric Co., Ltd. 3,186,264.00 3,166,934.00 19,330.00
Total 619,253,378.17 616,057,232.77 3,196,145.40
(3) Issuance of invoices
Name of company Issuer Bill amount Types
Sichuan Changhong Group Finance
Sichuan Changhong Air-conditioner Co., Ltd. 412,479,666.87 Bank acceptance
Co., Ltd.
Sichuan Changhong Group Finance
Zhongshan Changhong Electric Co., Ltd. 175,994,106.32 Bank acceptance
Co., Ltd.
Ground Energy Heat Pump Tech. (Zhongshan) Sichuan Changhong Group Finance
Co., Ltd. Co., Ltd.
93,332,635.40 Bank acceptance
Sichuan Changhong Group Finance
Changhong Meiling Co., Ltd. 68,648,000.00 Bank acceptance
Co., Ltd.
Hefei Changhong Meiling Life Appliances Sichuan Changhong Group Finance
Co., Ltd. Co., Ltd.
52,619,912.95 Bank acceptance
Zhongke Meiling Cryogenic Technology Co., Sichuan Changhong Group Finance
Ltd. Co., Ltd.
22,782,762.33 Bank acceptance
Sichuan Changhong Group Finance
Hefei Meiling Group Holdings Limited 19,690,458.51 Bank acceptance
Co., Ltd.
Changhong Meiling Ridian Technology Co., Sichuan Changhong Group Finance
Ltd. Co., Ltd.
4,636,688.71 Bank acceptance
Sichuan Changhong Group Finance
Anhui Tuoxing Technology Co., Ltd. 567,648.11 Bank acceptance
Co., Ltd.
Total 850,751,879.20
(4) Borrowings: N/A
(5) Receivable factoring: N/A
(iii) Come and go balance with related parties
124
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024
(Unless other wise specified, RMB for record in the Statement)
1. Receivable items
Ending balance Beginning balance
Item Related party Bad debt Bad debt
Book balance Book balance
provision provision
Account Sichuan Zhiyijia Network Technology Co.,
307,366,371.74 90,806,707.75 188,235,530.60 110,410,176.95
receivable Ltd.
Account CHANGHONG (HK) TRADING LIMITE
164,326,395.49 117,003,398.60
receivable D
Account CHANGHONGELECTRIC(AUSTRALIA)
99,172,832.83 79,488,591.21
receivable PTY.LTD.
Account Changhong International Holdings (Hong
52,456,012.28 4,579,899.03 67,734,903.25 3,339,617.94
receivable Kong) Co., Ltd.
Account Changhong Ruba Electric Company
41,050,781.19 41,050,781.19 40,856,357.09 40,856,357.09
receivable (Private) Ltd.
Account
Orion.PDP.Co.,ltd 12,433,142.38 13,506,278.22
receivable
Account
Changhong Europe Electric s.r.o 3,116,227.66 31,860,854.17
receivable
Account
Sichuan Changhong Jijia Fine Co., Ltd. 834,176.17
receivable
Account Sichuan Changhong Precision Electronics
receivable Tech. Co., Ltd.
501,968.02
Account
Yuanxin Financing Lease Co., Ltd. 430,950.72 558,665.14
receivable
Account Sichuan Changhong Model Technology
442,885.30 176,175.52
receivable Co., Ltd.
Account Sichuan Changhong Jiahua Information
receivable Product Co., Ltd.
390,882.36
Account Sichuan Service Exp. Appliance Service
368,299.76 349,069.73
receivable Chain Co., Ltd.
Account Sichuan Changhong Electric Appliance
237,383.91 916.73 900,179.64
receivable Co., Ltd
Account Sichuan Changhong Jiechuang Lithium
40,738.00 30,600.00
receivable battery Technology Co., Ltd.
Account Sichuan Changhong Electricl Holdings
6,227.50 720.00
receivable Group Co., Ltd.
Account Sichuan Changhong Minsheng Logistics
receivable Co., Ltd.
1,044.36
Account
Sichuan Aichuang Technology Co., Ltd. 0.01 3,195,467.74
receivable
Account
Changhong Huayi Compressor Co., Ltd. 519,071.54
receivable
Account Sichuan Changhong Intelligent
727,500.00
receivable Manufacturing Technology Co., Ltd.
Account Sichuan Changhong Property Service Co.,
119,213.45
receivable Ltd.
Account
Sichuan Changhong Electric Part Co., Ltd. 954.00
receivable
Account Sichuan Changhong Newe Network
112,000.00
receivable Technology Co., Ltd.
Account Mianyang Huafeng Hulian Technology Co.,
8,800.00
receivable Ltd.
Account
Sichuan Huafeng Technology Co., Ltd. 176,400.00
receivable
Account Sichuan Changhong Network Technology
96,000.00
receivable Co., Ltd.
Account paid
Sichuan Ailian Technology Co., Ltd. 50,889.49 53,247.60
in advance
Account paid Sichuan Changhong Model Technology
in advance Co., Ltd.
15,433.63
125
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024
(Unless other wise specified, RMB for record in the Statement)
Ending balance Beginning balance
Item Related party Bad debt Bad debt
Book balance Book balance
provision provision
Account paid
Hefei Changhong Industry Co., Ltd. 2,320.58 2,986.27
in advance
Account paid
Sichuan Changhong Electric Co., Ltd. 19.17 19.17
in advance
Account paid Sichuan Changhong Minsheng Logistics
8,396.00
in advance Co., Ltd.
Account paid Chengdu Changhong Electric Technology
381,126.07
in advance Co., Ltd.
Other account Sichuan Service Exp. Appliance Service
581,398.59 313,490.41
receivable Chain Co., Ltd.
Other account Sichuan Zhiyijia Network Technology Co.,
190,551.00 303,019.00
receivable Ltd.
Other account Sichuan Changhong Package Printing Co.,
receivable Ltd
11,587.58
Other account Sichuan Changhong Electric Appliance
receivable Co., Ltd
3,346.20
Other account Sichuan Changhong Property Service Co.,
2,904.93 2,904.93
receivable Ltd.
Other account Sichuan Changhong Device Technology
receivable Co., Ltd
41.86
Contract assets Yuanxin Financing Lease Co., Ltd 534,886.00
Sichuan Changhong Jiechuang Lithium
Contract assets 171,000.00
battery Technology Co., Ltd.
Sichan Changhong Electric Holdings
Contract assets 38,056.67
Group Co., Ltd.
Contract assets Sichuan Aichuang Technology Co., Ltd. 21,254.70
Contract assets Guangdong Changhong Electric Co., Ltd. 11,516.30
Sichuan Qimeng Zhongzheng Technology
Contract assets 11,500.00
Co., Ltd.
Contract assets Yibin Hongxing Electric Co., Ltd. 9,800.00
Mianyang Huafeng Hulian TechnologyCo.,
Contract assets 8,800.00
Ltd
Total 684,841,626.38 136,438,304.70 546,721,919.35 154,606,151.98
2.Payable items
Item Related party Ending balance Beginning balance
Account Sichuan Changhong Electric Holding Group Co.,
357,862,588.09 23,732,724.50
payable Ltd.
Account
Sichuan Changhong Moulding Tech. Co., Ltd. 326,017,919.87 173,023,852.05
payable
Account
Sichuan Changhong Jijia Fine Co., Ltd. 267,085,463.33 32,211,531.65
payable
Account
Mianyang Highly Electric Co., Ltd. 165,520,564.78 17,723,765.52
payable
Account
Changhong Huayi Compressor Co., Ltd. 116,072,221.07 117,609,190.18
payable
Account
Sichuan Changxin Refrigeration Parts Co., Ltd. 115,851,974.48 17,976,156.76
payable
Account
Sichuan Changhong Package Printing Co., Ltd. 66,409,690.20 14,430,893.66
payable
Account Sichuan Aichuang Science & Technology Co., Ltd.
50,216,916.34 56,579,812.80
payable
Account
Changhong Ruba Electric Company (Private) Ltd. 15,898,124.68 13,195,411.19
payable
Account Sichuan Changhong Precision Electronics Tech. Co., 14,616,291.06 2,884,803.49
126
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024
(Unless other wise specified, RMB for record in the Statement)
Item Related party Ending balance Beginning balance
payable Ltd.
Account
Sichuan Changhong Minsheng Logistics Co., Ltd. 14,129,525.09 4,022,048.97
payable
Account
Sichuan Changhong Electric Co., Ltd. 13,691,229.68 2,863,953.34
payable
Account
Sichuan Changhong Electronic Products Co., Ltd 9,412,873.24 3,801,344.25
payable
Account
Sichuan Aoku Technology Co., Ltd. 8,932,249.52 14,614,765.93
payable
Account Changhong International Holdings (Hong Kong) Co.,
7,634,824.10 8,933,631.46
payable Ltd.
Account
Sichuan Ailink Technology Co., Ltd. 4,853,668.90 1,721,318.59
payable
Account
Guangdong Changhong Electric Co., Ltd. 4,382,778.25 1,554,593.15
payable
Account
PT.CHANGHONG ELECTRIC INDONESIA 2,867,287.58 1,514,130.31
payable
Account
Sichuan Changhong Electric Appliance Co., Ltd 2,131,639.89 1,148,884.00
payable
Account Sichuan Changhong Intelligence Manufacturing
801,438.62 270,846.58
payable technology Co., Ltd.
Account
Sichuan Hongxin Software Co., Ltd. 557,526.89 451,301.89
payable
Account Sichuan Service Exp. Appliance Service Chain Co.,
500,389.64 725,473.65
payable Ltd.
Account Sichuan Changhong New Energy Technology Co.,
421,990.00 225,732.08
payable Ltd.
Account
Sichuan Changhong International Hotel Co., Ltd. 114,322.00 146,276.00
payable
Account
Sichuan Qiruik Technology Co., Ltd. 32,000.00 32,000.00
payable
Account
Sichuan Zhiyijia Network Technology Co., Ltd. 30,019.69 35,267.63
payable
Account
Sichuan Hongwei Technology Co., Ltd. 10,901.64 5,492.64
payable
Account
Chengdu Guigu Environmental Tech. Co., Ltd 57,178.00
payable
Account
Sichuan Jiahong Industry Co., Ltd. 396.00
payable
Contract
Mianyang Huafeng Hulian Technology Co., Ltd. 2,917,074.13
liability
Contract
Yuanxin Financial Lease Co., Ltd. 1,797,939.40
liability
Contract
Sichuan Changhong Electric Co., Ltd. 353,941.29 353,941.29
liability
Contract
Sichuan Aichuang Technology Co., Ltd. 198,900.00
liability
Contract
CHANGHONG ELECTRIC MIDDLE EAST FZCO 90,788.31 90,332.93
liability
Contract
Changhong Europe Electric s.r.o 26,420.38
liability
Contract
Sichuan Changhong Minsheng Logistics Co., Ltd. 14,654.87 14,654.86
liability
Contract Sichuan Service Exp. Appliance Service Chain Co.,
10,727.89 10,727.89
liability Ltd.
Contract
Sichuan Baiku Technology Co., ltd. 7,841.59 22,932.74
liability
Contract
Sichuan Anshifei Technology Co., Ltd. 2,646.19 2,646.19
liability
Contract
CHANGHONG(HK)TRADINGLIMITED 914.31 908.66
liability
127
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024
(Unless other wise specified, RMB for record in the Statement)
Item Related party Ending balance Beginning balance
Contract
Sichuan Changhong Moulding Tech. Co., Ltd. 577.96 2,415.93
liability
Contract Changhong International Holdings (Hong Kong) Co.,
409.11 713.44
liability Ltd.
Contract
Sichuan Zhiyijia Network Technology Co., Ltd. 32,073,215.34
liability
Contract
081 Electronic Group Co., Ltd. 22.61
liability
Lease
Sichuan Changhong Electric Co., Ltd. 26,224,871.59 27,418,257.97
liability
Lease
Hefei Changhong Industrial Co., Ltd. 15,997,026.02 16,678,869.72
liability
Lease
Sichuan Changhong Electric Holding Group Co., Ltd. 254,243.53
liability
Lease
Chengdu Changhong Electronic Technology Co., Ltd. 381,126.07
liability
Other Sichuan Service Exp. Appliance Service Chain Co.,
167,921,811.80 82,400,851.21
payable Ltd.
Other
Sichuan Changhong Minsheng Logistics Co., Ltd. 162,347,273.68 132,815,918.64
payable
Other
Sichuan Changhong Electric Holding Group Co., Ltd. 2,709,884.52 393,156.00
payable
Other
Sichuan Changhong Moulding Tech. Co., Ltd. 2,590,227.37 2,559,981.65
payable
Other
Changhong Huayi Compressor Co., Ltd. 1,848,900.00 1,903,400.00
payable
Other
Sichuan Changhong Jijia Fine Co., Ltd. 485,624.10 425,492.32
payable
Other
Sichuan Hongxin Software Co., Ltd. 477,830.19 594,516.98
payable
Other
Sichuan Zhiyijia Network Technology Co., Ltd. 295,915.19 566,063.25
payable
Other Sichuan Changhong Gerun Environmental Tech. Co.,
payable Ltd
160,516.00
Other
Sichuan Aoku Technology Co., Ltd. 160,212.20 260,212.20
payable
Other
Sichuan Hongwei Technology Co., Ltd. 139,366.58
payable
Other Sichuan Changhong Precision Electronics Tech. Co.,
136,929.45 734.43
payable Ltd.
Other
Sichuan Aichuang Technology Co., Ltd. 100,000.00 1,443,020.00
payable
Other
Sichuan Changxin Refrigeration Parts Co., Ltd. 64,104.03 173,907.41
payable
Other
Sichuan Changhong Electric Co., Ltd. 51,799.44 58,735.52
payable
Other
Sichuan Changhong Package Printing Co., Ltd. 50,000.00 139,699.18
payable
Other
Sichuan Ailink Technology Co., Ltd. 50,000.00 50,000.00
payable
Other
Sichuan Changhong Electronic Products Co., Ltd. 50,000.00 50,000.00
payable
Other
Hefei Changhong Industrial Co., Ltd. 50,000.00 50,000.00
payable
Other Sichuan Changhong New Energy Technology Co.,
50,000.00 50,000.00
payable Ltd.
Other
081 Electronic Group Co., Ltd. 40,867.89
payable
Other Sichuan Changhong Intelligence Manufacturing
34,550.00 109,596.00
payable Technology Co., Ltd.
Other
Guangdong Changhong Electric Co., Ltd. 21,219.12 25,113.76
payable
128
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024
(Unless other wise specified, RMB for record in the Statement)
Item Related party Ending balance Beginning balance
Other
Sichuan Qiruik Technology Co., Ltd. 7,410.00 585,767.70
payable
Other
Chengdu Guigu Environmental Tech. Co., Ltd 5,717.80
payable
Other
Sichuan Jiahong Industry Co., Ltd. 18.00 18.00
payable
Other
Yuanxin Financial Lease Co., Ltd. 61,295,062.03
payable
Other Sichuan Changhong Precision Electronic Technology
29.70
payable Co., Ltd
Received in
Sichuan Changhong Moulding Tech. Co., Ltd. 315,021.87
advance
Received in
Sichuan Changhong Jijia Fine Co., Ltd. 309,333.10
advance
Received in
Sichuan Changhong Electric Appliance Co., Ltd 170,589.03
advance
Received in
Chengdu Guigu Environmental Tech. Co., Ltd 14,201.84
advance
Total 1,954,614,718.40 874,494,817.89
(iv) Commitments from related parties: N/Al
XIII. Share-based payment: N/A
XIV. Contingency
1. Pending action or possible liabilities formed from arbitration
In November 2021, Zhejiang Teruisi Pharmaceutical Co., Ltd. filed a lawsuit against Zhongke Meiling
for the "Contract for Cold Storage Design, Equipment Procurement and Installation Construction".
Currently, a third-party engineering quality appraisal agency is conducting quality appraisal of the
objects under the contract, the boot-up and operation test has been initially completed, and Zhongke
Meiling intends to advocate maintenance of the cold storage project, and the maintenance cost is
estimated to be 1,720,534.42 yuan.
As of December 31, 2024, apart from the aforementioned lawsuits, some of our subsidiaries have been
defendants in certain legal proceedings and plaintiffs in other lawsuits that arise in our daily business
operations. Although the outcome of these contingencies, legal proceedings, or other lawsuits cannot be
determined at present, the management believes that any resulting liabilities will not have a significant
negative impact on the financial condition or operating performance of the company.
2. Contingency from external guarantee: N/A
3. Other contingency: N/A
XV. Commitments: N/A
XVI. Events occurring after the balance sheet date
1. Important non-adjustment items: N/A
2. Profit distribution: N/A
3.Major sales return: N/A
4.Other than the above mentioned events, the Company have no other events occurred after balance
129
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024
(Unless other wise specified, RMB for record in the Statement)
sheet date.
XVII. Other significant matters
1. Correction of previous periods and influence: N/A
2. Debt restructuring: N/A
3. Assets replacement: N/A
4. Pension plan: N/A
5. Discontinuing operation: N/A
6.Branch information
In RMB 10,000
Refrigerator,
Small
freezer Air- Sales in
Item home Other Total
Washing conditioner branch
appliances
machine
Operation income 558,100.36 860,091.48 84,000.62 20,871.26 28,296.69 1,494,767.03
Including: foreign trade
income
553,437.53 860,078.10 74,343.40 6,908.00 1,494,767.03
Income from transactions
between divisions
4,662.83 13.38 9,657.22 13,963.26 28,296.69
Operation expenses 544,166.28 833,783.40 82,703.24 19,147.12 28,401.54 1,451,398.50
Operation profit 13,934.08 26,308.08 1,297.38 1,724.14 -104.85 43,368.53
Total assets 1,364,350.65 1,065,786.23 93,346.70 24,847.28 179,729.70 2,368,601.16
Total liability 817,950.67 895,622.78 63,868.48 8,108.28 34,746.02 1,750,804.19
Supplementary
information
Depreciation and
amortization expenses
11,034.18 7,494.00 166.73 403.22 -10.50 19,108.63
Capital expenditure 8,716.57 13,691.99 0.91 372.20 30.88 22,750.79
Total assets do not include deferred income tax assets, and total liabilities exclude deferred income tax
liabilities.
7. Other major transactions and events shows impact on investor’s decision-making: N/A
XVIII. Notes to main items of financial statement of parent company
1.Account receivable
(1) By account age
Account age Ending balance Beginning balance
Within 1 year（Including 1 year） 1,245,715,775.86 1,455,451,760.05
Including：
Within 3 months (3 months included) 1,223,841,022.59 1,405,485,686.08
More than 3 months and less than 6 months (6
12,901,775.29 40,372,699.21
months included)
Over 6 months and within one year (One year
8,972,977.98 9,593,374.76
included)
Over one year - within 2 years (2 years
5,229,426.83 13,012,239.58
included)
130
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024
(Unless other wise specified, RMB for record in the Statement)
Account age Ending balance Beginning balance
Over 2 years - within 3 years (3 years included) 15,633,879.27 26,677,206.61
Over 3 years 39,535,366.46 24,592,353.91
Total
1,306,114,448.42 1,519,733,560.15
(2) Category of account receivable by bad debt accrual
Ending balance
Category Book balance Bad debt provision
Ratio Ratio Book value
Amount Amount
(%) (%)
Account receivable that withdrawal
bad debt provision by single item 812,379,874.29 62.20 55,210,546.98 6.80 757,169,327.31
Including: current payment with
related party
733,464,745.39 56.16 39,882,592.06 5.44 693,582,153.33
Account receivable with letter of
credit
59,479,316.90 4.55 59,479,316.90
Account receivable with single minor
amount but withdrawal single item 19,435,812.00 1.49 15,327,954.92 78.86 4,107,857.08
bad debt provision
Account receivable withdrawal bad
debt provision by portfolio 493,734,574.13 37.80 12,895,779.72 2.61 480,838,794.41
Including: account receivable of
engineering customers
Receivables other than engineering
customers
493,734,574.13 37.80 12,895,779.72 2.61 480,838,794.41
Total 1,306,114,448.42 100.00 68,106,326.70 5.21 1,238,008,121.72
Continued
Beginning balance
Category Book balance Bad debt provision
Ratio( Ratio( Book value
Amount Amount
%) %)
Account receivable that withdrawal
876,212,956.55 57.66 53,914,896.27 6.15 822,298,060.28
bad debt provision by single item
Including: current payment with
803,660,757.46 52.88 39,553,880.21 4.92 764,106,877.25
related party
Account receivable with letter of
52,483,325.93 3.46 52,483,325.93
credit
Account receivable with single minor
amount but withdrawal single item 20,068,873.16 1.32 14,361,016.06 71.56 5,707,857.10
bad debt provision
Account receivable withdrawal bad
643,520,603.60 42.34 14,023,130.16 2.18 629,497,473.44
debt provision by portfolio
Including: account receivable of
engineering customers
Receivables other than engineering
643,520,603.60 42.34 14,023,130.16 2.18 629,497,473.44
customers
Total 1,519,733,560.15 100.00 67,938,026.43 4.47 1,451,795,533.72
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
131
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024
(Unless other wise specified, RMB for record in the Statement)
characteristic of the receivables, Involving 10 customers.
2) Account receivable withdrawal bad debt provision by portfolio
A. Account receivable of engineering customers
Ending balance
Account age
Book balance Bad debt Accrual ratio (%)
Within 3 months(3 months included) 474,441,406.17 4,744,414.06 1.00
Over 3 months and within 6 months (6 months 2,945,228.31 294,522.83
included) 10.00
Over 6 months and within one year (One year 7,340,804.83 1,468,160.97
included) 20.00
over one year-within two years (2 years
included)
4,227,645.87 2,113,822.94 50.00
Over 2 years - within 3 years (3 years included) 2,523,150.14 2,018,520.11 80.00
Over 3 years 2,256,338.81 2,256,338.81 100.00
Total 493,734,574.13 12,895,779.72 —
(Continued)
Beginning balance
Account age
Book balance Bad debt Accrual ratio (%)
Within 3 months(3 months included) 616,484,217.92 6,164,842.18 1.00
Over 3 months and within 6 months (6 months 10,991,345.13 1,099,134.51
included) 10.00
Over 6 months and within one year (One year 9,190,814.21 1,838,162.84
included) 20.00
over one year-within two years (2 years 2,053,806.51 1,026,903.26
included) 50.00
Over 2 years - within 3 years (3 years included) 4,531,662.28 3,625,329.82 80.00
Over 3 years 268,757.55 268,757.55 100.00
Total 643,520,603.60 14,023,130.16 —
(3) Bad debt reserves of the account receivable
Amount change in the period
Beginning
Category Collected or Resale or write- Ending balance
balance Accrual
switch back off
Bad debt
67,938,026.43 168,300.27 68,106,326.70
provision
Total 67,938,026.43 168,300.27 68,106,326.70
(4) Top 5 balance of account receivable aggregated by the debtor at end of the period amounted
to794,668,513.11 yuan, accounted for60.84% of the receivables at balance of current period-end, the
bad debt provision amounted as2,213,597.52yuan.
2. Other account receivable
Item Ending balance Beginning balance
Other account receivable 67,480,000.95 61,841,221.91
132
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024
(Unless other wise specified, RMB for record in the Statement)
Item Ending balance Beginning balance
Total 67,480,000.95 61,841,221.91
(1) By nature
Nature Ending book balance Beginning book balance
Export tax refund 49,174,580.49 41,179,511.61
Cash deposit 4,501,770.32 4,109,987.09
Loans of employee’s pretty cash 10,249,628.26 10,727,346.46
Related party not in consolidation statement 3,687,015.36 5,957,370.23
Other 456,265.42 456,265.42
Total 68,069,259.85 62,430,480.81
(2) By account age
Account age Ending balance Beginning balance
Within 1 year（1 year included） 63,012,902.21 57,173,854.18
Including：
Within 3 months (3 months included) 57,173,080.91 53,994,269.35
Over 3 months and within 6 months (6 months
2,694,293.37 1,161,881.37
included)
Over 6 months and within one year (One year
3,145,527.93 2,017,703.46
included)
over one year-within two years (2 years
1,272,860.98 1,206,412.81
included)
Over 2 years - within 3 years (3 years included) 1,088,660.68 1,288,721.92
Over 3 years 2,694,835.98 2,761,491.90
Total 68,069,259.85 62,430,480.81
(3) Category of Other account receivable bad debt reserves
Ending balance
Category Book balance Bad debt provision
Ratio Book value
Amount Amount Ratio (%)
(%)
That withdrawal bad debt provision by
single item 68,069,259.85 100.00 589,258.90 0.87 67,480,000.95
In which: other receivables with no
major individual amount but bad debt 15,207,664.00 22.34 589,258.90 3.87 14,618,405.10
provision accrued individually
Export tax refund 49,174,580.49 72.24 49,174,580.49
Related party funds 3,687,015.36 5.42 3,687,015.36
Bad debt provision accrued by
portfolio
133
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024
(Unless other wise specified, RMB for record in the Statement)
Ending balance
Category Book balance Bad debt provision
Ratio Book value
Amount Amount Ratio (%)
(%)
In which: other receivables accrued by
aging portfolio
Total 68,069,259.85 100.00 589,258.90 0.87 67,480,000.95
Continued
Beginning balance
Category Book balance Bad debt provision
Book value
Ratio Ratio
Amount Amount
(%) (%)
That withdrawal bad debt provision
62,430,480.81 100.00 589,258.90 0.94 61,841,221.91
by single item
In which: other receivables with no
major individual amount but bad debt 15,293,598.97 24.50 589,258.90 3.85 14,704,340.07
provision accrued individually
Export tax refund 41,179,511.61 65.96 41,179,511.61
Related party funds 5,957,370.23 9.54 5,957,370.23
Bad debt provision accrued by
portfolio
In which: other receivables accrued by
aging portfolio
Total 62,430,480.81 100.00 589,258.90 0.94 61,841,221.91
1) Accrual of bad debt provision for other receivables
First stage Second stage Third stage
Expected Expected credit loss Expected credit loss for
Bad debt provision credit loss in for the whole the whole duration Total
next 12 duration (no credit (credit impairment has
months impairment) occurred)
Balance as at 1 Jan. 2024 589,258.90 589,258.90
Book balance of other account
receivable in Current Year as — — — —
at 1 Jan. 2024
--Transfer to the second stage
-- Transfer to the third stage
-- Reversal to the second stage
-- Reversal to the first stage
Provision in Current Year
Reversal in Current Year
Conversion in Current Year
Write off in Current Year
Other change
Balance as at 30 June. 2024 589,258.90 589,258.90
(4)Bad debt provision for other receivables accrued, recovered or reversed this year
134
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024
(Unless other wise specified, RMB for record in the Statement)
Amount change in the period
Beginning
Category Ending balance
balance Recovery or Write-off or
Accrual Other
reversal cancellation
Bad debt 589,258.90
provision
589,258.90
Total 589,258.90 589,258.90
(5)Other account receivable actually written-off in Current period: N/A
(6) Top 5 other receivables collected by arrears party at balance of period-end
Proportion of the
Ending
Name of the total period-end
Nature Ending balance Account age balance of bad
unit balance of other
debt reserve
receivable (%)
Unit I Export rebates 49,174,580.49 Within 1 year 72.24
Unit II Related party payment 3,037,629.38 Within 1 year,,1-2 years 4.46
Unit III Petty cash 1,368,000.00 Within 1 year 2.01
Within 1 year，
Unit IV Petty cash 2,730,438.36 4.01
1-2 years，2-3 years
Unit V Petty cash 884,183.55 Within 1 year 1.30
Total 57,194,831.78 84.02
(7)There is no other receivables reported due to the centralized management of funds.
3. Long-term equity investments
(1) Classification of long-term equity investments
Ending balance Beginning balance
Item Impair
Impairme Book
Book balance ment Book value Book balance
nt loss value
loss
1,756,435
Investment in subsidiaries: 1,756,435,120.88 1,756,435,120.88 1,756,435,120.88
,120.88
101,040,6
Investment in associates: 102,101,317.86 102,101,317.86 101,040,690.02
90.02
1,857,475
Total 1,858,536,438.74 1,858,536,438.74 1,857,475,810.90
,810.90
135
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024
(Unless other wise specified, RMB for record in the Statement)
(2) Investment in subsidiaries
Provision for
Increased in Decreased in Current impairment Ending balance of
Invested enterprise Beginning balance Ending balance
Current Period Period losses in the impairment
Period
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
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 Meiling Wulian Technology Co., Ltd. 10,000,000.00 10,000,000.00
CH-Meiling.International (Philippines)
6,889,100.00 6,889,100.00
Inc.
Hefei Changhong Meiling Life Appliances Co.,
35,000,000.00 35,000,000.00
Ltd.
Sichuan Hongmei Intellgence Technology Co.,
22,725,052.60 22,725,052.60
Ltd.
Total 1,756,435,120.88 1,756,435,120.88
(3) Investment in associates
Changes in Current Period
Neg Adjustme Ending
Cash Provisi balance
Beginning ativ Investment nt for
Invested enterprise dividend or on for Ending balance of
balance Additional e income other Other equity Ot
profit impair impairme
Investment Inve recognized comprehe change her
announced to ment nt
stm under equity nsive
issued loss
ent income
Hefei Xingmei Assets
14,139,256.78 45,466.71 14,184,723.49
Management Co., Ltd.
136
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024
(Unless other wise specified, RMB for record in the Statement)
Sichuan Zhiyijia Network
68,854,162.70 5,998,850.59 5,097,740.91 69,755,272.38
Technology Co., Ltd.
Sichuan Hongyuan Venture
18,047,270.54 114,051.45 18,161,321.99
Investment Partnership(LP)
Total 101,040,690.02 6,158,368.75 5,097,740.91 102,101,317.86
137
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024
(Unless other wise specified, RMB for record in the Statement)
4. Operation income, operation cost
(1) Operation income and operation cost
Current Period Last Period
Item
Income Cost Income Cost
Main business 4,736,689,610.11 4,312,082,040.29 4,122,655,653.51 3,763,651,668.97
Other business 233,213,037.21 213,049,683.92 216,043,888.41 191,302,905.28
Total 4,969,902,647.32 4,525,131,724.21 4,338,699,541.92 3,954,954,574.25
(2)The decomposition information of operation income and operation cost
Current Period Last Period
Item
Income Cost Income Cost
Product
Including：
3,855,961,141.78 3,531,389,024.77 3,480,438,269.96 3,192,961,299.81
Refrigerator, Freezer
Air-conditioning 3,193,017.71 3,193,033.03 5,672,858.41 5,668,106.85
Washing machine 765,993,263.60 683,377,373.67 527,176,164.12 463,485,427.18
Small household
appliances and kitchen 111,542,187.02 94,122,608.82 109,368,361.02 101,536,835.13
and bathroom
Other business 233,213,037.21 213,049,683.92 216,043,888.41 191,302,905.28
Area
Domestic 2,731,861,997.32 2,565,162,644.05 2,515,463,495.27 2,388,825,421.64
Overseas 2,238,040,650.00 1,959,969,080.16 1,823,236,046.65 1,566,129,152.61
Total 4,969,902,647.32 4,525,131,724.21 4,338,699,541.92 3,954,954,574.25
5. Investment income
Item Current Period Last Period
Long-term equity investment income by cost method 4,590,000.00 50,826,032.53
Long-term equity investment income by equity method 6,158,368.75 11,539,929.52
Investment income obtained from disposal of Trading financial
-2,695,895.63 -8,577,708.50
assets
Investment income of other current financial assets during holding
1,394,444.44
period
Investment income of other non-current financial assets during
12,912,196.37 11,409,029.33
holding period
The termination of income recognition for financial assets measured
-2,635,478.39 -4,223,097.22
by amortized cost
Interest income from debt investment during the holding period 6,946,457.96 7,402,220.09
Total 26,670,093.50 68,376,405.75
XIX. Supp le men tary informa tion for f inancial statement
1. Non-recurring gains and losses for this period
Item Current amount Note
Non-current asset disposal gain/loss(including the write-off part for
which assets impairment provision is made)
36,334.95
138
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024
(Unless other wise specified, RMB for record in the Statement)
Item Current amount Note
Government subsidies recognized in current gain and loss(excluding
those closely related to the Company’s business and granted under the 25,786,292.09
state’s policies)
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 -65,274,314.20
liability and financial assets available-for-sale, excluded effective
hedging business relevant with normal operations of the Company
Reversal of the account receivable depreciation reserves subject to
separate impairment test 20,809,004.37
Other non-operating income and expenses other than the above -1,926,547.40
Subtotal -20,569,230.19
Less: impact on income tax -7,066,269.14
Impact on minority shareholders’ equity (post-tax) 3,968,079.44
Total -17,471,040.49 —
2. Return on equity and earnings per share
Weighted average return on Earnings per share/EPS (RMB/Share)
Profit during the report period
equity Basic EPS Diluted EPS
Net profit attributable to ordinary
shareholders of the parent company
6.88% 0.4030 0.4030
Net profit attributable to ordinary
shareholders of the parent company
after deduction of the non-recurring
7.17% 0.4199 0.4199
gains/losses
Chairman: Wu Dinggang
Changhong Meiling Co., Ltd.
August 17, 2024
139
