长虹美菱股份有限公司
CHANGHONG MEILING CO., LTD.
二〇二〇年年度报告
Annual Report 2020
Section I. Important Notice, Contents and Interpretation
Board of Directors, Supervisory Committee, all directors, supervisors and senior executives of ChanghongMeiling Co., Ltd. (hereinafter referred to as the Company) hereby confirm that there are no any fictitiousstatements, misleading statements, or important omissions carried in this report, and shall take all responsibilities,individual and/or joint, for the reality, accuracy and completion of the whole contents.Mr. Wu Dinggang, Chairman of the Company, Mr. Pang Haitao, person in charge of accounting work and Mr.Yang Jun, person in charge of accounting organ (accountant in charge) hereby confirm that the Financial Report of2020 Annual Report is authentic, accurate and complete.The Company did not have directors, supervisors and senior executives of the Company could not guarantee thereality, accuracy and completion of the whole contents or have objections.All the directors attended the board meeting to deliberating the Report on site and by communication.Modified audit opinions notes
□ Applicable √ Not applicable
Shine Wing Certified Public Accountants Co., Ltd. (LLP) issued standard unqualified Auditors‘ Report for theCompany‘s Financial Report of 2020.
Major defects in internal control
□ Applicable √Not applicable
The Company had no major defects in internal control in the reporting period.
Risk warning of concerning the forward-looking statements with future planning involved in annual report
√ Applicable □Not applicable
Concerning the forward-looking statements with future planning involved in the Report, they do not constitute asubstantial commitment for investors, investors and the person concerned should maintain adequate riskawareness, furthermore, differences between the plans, forecast and commitments should be comprehended.Investors are advised to exercise caution of investment risks.
Investors are advised to read the full text of annual report, and pay particular attention to the following riskfactors:
More details about the possible risks and countermeasures in the operation of the Company are described in thereport ―IX. Prospects for the future development of the company‖ of ―Section IV. Analysis and discussion of theoperation‖, investors are advised to read the relevant content.
Securities Times, China Securities Journal, Hong Kong Commercial Daily and Juchao Website(www.cninfo.com.cn) are the media for information disclosure for year of 2021 that appointed by the Company.All public information under the name of the Company disclosed on the above said media and website shallprevail, and investors are advised to exercise caution.Does the Company need to comply with disclosure requirements of the special industry: no
Profit distribution pre-plan or capitalizing of common reserves pre-plan deliberated by the Board in the reportingperiod
√ Applicable □ Not applicable
The profit distribution plan for year of 2020, that deliberated and approved by 6
th session of the 10
thBOD was:
take the total shares (on the registration date when implement the equity distribution plan for year of 2020) afterdeduct the B shares that have been bough-back as the base, distributed 0.5 Yuan (tax included) bonus in cash forevery 10-share hold by all shareholders, no share bonus issued and no capitalizing of common reserves carriedout.The company is currently implementing the repurchase of domestically listed foreign shares (B shares). As of thedisclosure date of this report, the Company has repurchased 8,388,888 B shares of the company through acentralized bidding transaction through the special account for share repurchase securities.
Directors, supervisors and senior executives of the Company respectively signed a Written Confirmation Opinionsfor 2020 Annual Report.
Supervisory Committee of the Company formed Written Examination Opinions for 2020 Annual Report.
Contents
Section I. Important Notice, Contents and Interpretation ................................................................................... 1
Section II Company Profile and Main Financial Indexes ...... 5
Section III. Summary of Company Business ....................................................................................................... 12
Section IV. Discussion and Analysis of the Operation ........................................................................................ 19
Section V. Important Events ................................................................................................................................. 59
Section VI. Changes in shares and particular about shareholders .................................................................. 149
Section VII. Preferred Stock ............................................................................................................................... 157
Section VIII. Convertible Bonds......................................................................................................................... 158
Section IX. Particular about Directors, Supervisors, Senior Executives and Employees ............................. 159
Section X. Corporate Governance ...................................................................................................................... 176
Section XI. Corporate Bond................................................................................................................................ 194
Section XIII. Documents available for Reference ............................................................................................. 395
Interpretation
| Items | Refers to | Contents |
| Company, The Company, Changhong Meiling or Meiling Electric | Refers to | CHANGHONG MEILING CO.,LTD. |
| Sichuan Changhong or controlling shareholder | Refers to | Sichuan Changhong Electric Co., Ltd. |
| Changhong Group | Refers to | Sichuan Changhong Electronics Holding Group Co., Ltd. |
| Hong Kong Changhong | Refers to | CHANGHONG (HK) TRADING LIMITED |
| Meiling Group | Refers to | Hefei Meiling Group Holdings Limited |
| Industry Investment Group | Refers to | Hefei Industry Investment Holding (Group) Co., Ltd. |
| Shine Wing | Refers to | Shine Wing Certified Public Accountants (LLP) |
| Changhong Air-conditioner | Refers to | Sichuan Changhong Air-conditioner Co., Ltd. |
| Zhongke Meiling | Refers to | Zhongke Meiling Cryogenic Technology Co., Ltd. |
| Jiangxi Meiling | Refers to | Jiangxi Meiling Electric Appliance Co., Ltd. |
| Ridian Keji | Refers to | Changhong Meiling Ridian Technology Co., Ltd. |
| Zhongshan Changhong | Refers to | Zhongshan Changhong Electric Co., Ltd. |
| Changhong Huayi | Refers to | Changhong Huayi Compressor Co., Ltd. |
| Zhiyijia Company | Refers to | Sichuan Zhiyijia Network Technology Co., Ltd. |
| CSRC | Refers to | China Securities Regulatory Commission |
| Anhui Securities Bureau | Refers to | China Securities Regulatory Commission, Anhui Province Securities Regulatory Bureau |
| SSE | Refers to | Shenzhen Stock Exchange |
Section II Company Profile and Main Financial IndexesI. Company information
| Short form of the stock | Changhong Meiling, Hongmeiling B | Stock code | 000521, 200521 |
| Short form of the Stock after changed (if applicable) | N/A | ||
| Stock exchange for listing | Shenzhen Stock Exchange | ||
| Name of the Company (in Chinese) | 长虹美菱股份有限公司 | ||
| Short form of the Company (in Chinese) | 长虹美菱 | ||
| Foreign name of the Company (if applicable) | CHANGHONG MEILING CO.,LTD. | ||
| Abbr. of English name of the Company (if applicable) | CHML | ||
| Legal representative | Wu Dinggang | ||
| Registrations add. | No. 2163, Lianhua Road, Economic and Technology Development Zone, Hefei | ||
| Code for registrations add | 230601 | ||
| Offices add. | No. 2163, Lianhua Road, Economic and Technology Development Zone, Hefei | ||
| Codes for office add. | 230601 | ||
| Website | http://www.meiling.com | ||
| info@meiling.com | |||
II. Person/Way to contact
| Secretary of the Board | Rep. of security affairs | |
| Name | Li Xia | Zhu Wenjie |
| Contact add. | No. 2163, Lianhua Road, Economic and Technology Development Zone, Hefei | No. 2163, Lianhua Road, Economic and Technology Development Zone, Hefei |
| Tel. | 0551-62219021 | 0551-62219021 |
| Fax. | 0551-62219021 | 0551-62219021 |
| lixia@meiling.com | wenjie.zhu@meiling.com |
III. Information disclosure and preparation place
| Newspaper appointed for information disclosure | Securities Times, China Securities Journal, Hong Kong Commercial |
| Daily | |
| Website for annual report publish appointed by CSRC | Juchao website: http://www.cninfo.com.cn |
| Preparation place for annual report | Room of secretary of the Board, 2/F , administrative center, Office building of the Company |
IV. Registration changes of the Company
| Organization code | Uniform social credit code: 9134000014918555XK | |
| Changes of main business since listing (if applicable) | No changes | |
| Previous changes for controlling shareholders (if applicable) | 1. In October 1993, after initial listing, controlling shareholder of the Company-- Hefei Meiling Industrial Corp. (renamed as Hefei Meiling Group Co., dated 23 May 1994), executing controlling rights of the Company and management right of the state-owned assets on behalf of Hefei State-owned Assets Management Office, named at that time; 2. From November 1997 to May 2003, controlling shareholder of the Company was Hefei Meiling Group Holding Co., Ltd. (established base on former Meiling Group Co.,, ―Meiling Group‖ for short), an enterprise solely owned by the State; mainly operating the state-owned capital in authorized from State-owned Assets Management Commission of Hefei City, ensuring the maintenance and appreciation of state-owned assets; 3. On 29 May 2003, Meiling Group entered into ―Equity Transfer Agreement‖ with Shunde GreenKel Enterprise Development Co., ltd. (―GreenKel‖), the 82,852,683 state-owned shares held by the Company was transfer to GreenKel. After transferring, GreenKel comes to the first largest shareholder of the Company. 4. According to the spirit of ―Bulletin of Treatment Opinions on GreenKel Company purchasing State-owned Assets Shares of Listed Company‖ (GZFCQ[2006] No.: 44) jointly issued from SASAC and Ministry of Finance in April 2006, Meiling Group took back the Meiling Electric 82,852,683 shares from GreenKel by procedures, which has been transferred. In September 2006, relevant equity transfer agreement signed between the Meiling Group and GreenKel is invalid, which was confirmed by the ―Award‖ ((2006) HZZ No.: 104) issued from arbitration commission of Hefei; the state-owned legal person‘s 82,852,683 shares, held by GreenKel, should return to Meiling Electric, and relevant equity consideration will pay to GreenKel by Meiling Group . On 29 December 2006, the 82,852,683 shares of Meiling Electric were transfer to Meiling Group by GreenKel, and Meiling Group becomes the controlling shareholder of Meiling Electric again. 5. On 18 May 2006 and 11 January 2007, Meiling Group entered into ―Equity Transfer Agreement of Meiling Electric‖ and ―Supplementary Agreement of Equity Transfer of Meiling Electric‖ respectively with Sichuan Changhong and Changhong Group, among the 123,396,375 shares held by Meiling Group, 82,852,683 shares were transferred respectively to Sichuan Changhong and Changhong Group according to the transfer way regulated in agreement; of this transferring, 45,000,000 shares (10.88% of total share capital of the Company) were transferred to Sichuan Changhong, the first largest shareholder of the Company while 37,852,683 shares (9.15% of total share capital of the Company) were transferred to Changhong Group, the third largest shareholder of the Company. 6. On 29 October 2008, Changhong Group and Sichuan Changhong entered into ―Equity Transfer Agreement of Hefei Meiling Co., Ltd.‖, the 32,078,846 restricted circulations A shares of Meiling Electric held by Changhong Group were transferred by agreement to Sichuan Changhong. On 23 December 2008, | |
V. Other relevant information
(1) CPA engaged by the Company
the aforesaid equity transfer was approved by ―Reply on Matters of Equity held by State-ownedShareholders of Hefei Meiling Co., Ltd.‖ (GZCQ(2008) No.: 1413) from SASAC; on 21 January 2009, theaforesaid transfer was registered for ownership transfer in Shenzhen Branch of China Securities Depositoryand Clearing Corporation Limited. With this, the first majority shareholder of the Company comes toSichuan Changhong.
7. From 12 November 2018 to 25 February 2019, Sichuan Changhong and its concerted action Hong KongChanghong totally buys 16,231,024 shares of the Company through the secondary market by bidding(including A-stock of 13,751,756 shares and B-stock of 2,479,268 shares), a 1.55% in total share capital ofthe Company. After stake enlarge, Sichuan Changhong and its concerted action Hong KongChanghong holds 281,832,434 shares of the Company in total, a 26.98% of the total share capital of theCompany; of which, Sichuan Changhong directly holds 248,457,724 A-share of the Company, a
23.79% in total share capital of the Company while Hong Kong Changhong holds circulation B-share of theCompany amounting as 33,374,710 shares, a 3.19% in total share capital of the Company.
8. Ended as 31 December 2020, Sichuan Changhong and its concerted action Hong Kong Changhong totallyholds 281,832,434 shares of the Company, a 26.98% in total share capital of the Company; SichuanChanghong directly holds 248,457,724 A-share of the Company, a 23.79% in total share capital of theCompany while Hong Kong Changhong holds circulation B-share of the Company amounting as 33,374,710shares, a 3.19% in total share capital of the Company.Name of CPA
| Name of CPA | Shine Wing Certified Public Accountants (LLP) |
| Offices add. for CPA | 8/F, Block A, Fu Hua Mansion No.8 Chao Yang Men Bei da jie, Dong Cheng District, Beijing, P.R.C |
| Signing Accountants | Li Xifu, Wang Xiaodong |
(2) Sponsor engaged by the Company for performing continuous supervision duties in reporting period
□ Applicable √ Not applicable
(3) Financial consultant engaged by the Company for performing continuous supervision duties inreporting period
□ Applicable √ Not applicable
VI. Main accounting data and financial indexesWhether it has retroactive adjustment or re-statement on previous accounting data
□ Yes √ No
| 2020 | 2019 | Changes over last year | 2018 | |
| Operating income (RMB) | 15,388,050,229.67 | 16,553,252,894.93 | -7.04% | 17,490,174,950.01 |
| Net profit attributable to shareholders of the listed company (RMB) | -85,565,716.91 | 56,441,479.14 | -251.60% | 38,658,256.97 |
| Net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses (RMB) | -277,816,055.91 | -50,454,661.39 | -450.63% | -3,142,791.01 |
| Net cash flow arising from operating activities (RMB) | 1,403,516,222.46 | 1,285,003,985.04 | 9.22% | -220,560,615.36 |
| Basic earnings per share (RMB/Share) | -0.0819 | 0.0540 | -251.67% | 0.0370 |
| Diluted earnings per share (RMB/Share) | -0.0819 | 0.0540 | -251.67% | 0.0370 |
| Weighted average ROE | -1.73% | 1.13% | 2.86 percentage points down | 0.77% |
| Year end of 2020 | Year end of 2019 | Changes over end of last year | Year end of 2018 | |
| Total assets (RMB) | 16,103,355,454.46 | 14,202,233,615.47 | 13.39% | 15,561,810,184.54 |
| Net assets attributable to shareholder of listed company (RMB) | 4,854,173,682.43 | 5,004,947,673.36 | -3.01% | 5,015,730,486.57 |
The cause of the accounting policy change and accounting error correction
□ Applicable √ Not applicable
The lower one of net profit before and after deducting the non-recurring gains/losses in the last three fiscal yearsis negative, and the audit report of last year shows that the ability to continue operating is uncertain
□Yes √ No
The lower one of net profit before and after deducting the non-recurring gains/losses is negative
√Yes □No
| Item | 2020 | 2019 | Note |
| Operating income (RMB) | 15,388,050,229.67 | 16,553,252,894.93 | -- |
| Amount deducted from operating income (RMB) | 135,186,516.29 | 116,109,621.66 | It mainly refers to the income from house rental, waste sales, labor services, warehousing services and maintenance services in the current period. |
| Operating income after deduction (RMB) | 15,252,863,713.38 | 16,437,143,273.27 | -- |
VII. Accounting data difference under domestic and foreign accounting standards
(1) Difference of the net profit and net assets disclosed in financial report, under both IAS (InternationalAccounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable √ Not applicable
The Company has no difference of the net profit and net assets disclosed in financial report, under both IAS(International Accounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles) in reportingperiod.
(2) Difference of the net profit and net assets disclosed in financial report, under both foreign accounting rules andChinese GAAP (Generally Accepted Accounting Principles)
√ Applicable □ Not applicable
In RMB
| Net profit attributable to shareholders of listed company | Net assets attributable to shareholders of listed company | |||
| Current period | Previous period | Ending amount | Opening amount | |
| Chinese GAAP | -85,565,716.91 | 56,441,479.14 | 4,854,173,682.43 | 5,004,947,673.36 |
| Items and amount adjusted by foreign accounting rules | ||||
| Foreign accounting rules | -85,565,716.91 | 56,441,479.14 | 4,854,173,682.43 | 5,004,947,673.36 |
The Company had no difference of the net profit or net assets disclosed in financial report, under either foreignaccounting rules or Chinese GAAP (Generally Accepted Accounting Principles) in the period.
(3) Reasons for the differences of accounting data under accounting rules in and out of China
√ Applicable □ Not applicable
The ―Notice of Relevant Issues of Audit for Company with Domestically Foreign Shares Offering‖ was issuedfrom CSRC dated 12 September 2007, since the day issuing, cancel the previous ―dual audit‖ requirement forcompanies who offering domestically listed foreign shares (B-share enterprise) while engaging securities practicequalification CPA for auditing. The Company did not compile financial report under foreign accounting rulessince 2007, the financial report of the Company is complying on the ―Accounting Standard for BusinessEnterprise‖ in China, and therefore, there are no differences of accounting data under accounting rules in and outof China at period-end.
VIII. Quarterly main financial index
In RMB
| Q 1 | Q 2 | Q 3 | Q 4 | |
| Operating income | 2,281,578,242.02 | 4,514,282,494.97 | 4,560,882,229.12 | 4,031,307,263.56 |
| Net profit attributable to shareholders of the listed company | -270,008,124.67 | 59,877,543.74 | 86,575,054.56 | 37,989,809.46 |
| Net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses | -282,956,643.92 | 25,821,980.56 | 16,310,383.26 | -36,991,775.81 |
| Net cash flow arising from operating activities | -1,003,451,132.76 | 615,346,174.35 | 109,494,010.35 | 1,682,127,170.52 |
Whether there are significant differences between the above-mentioned financial index or its total number and therelevant financial index disclosed in the company‘s quarterly report and semi-annual report
□Yes √ No
IX. Items and amounts of non-recurring profit (gains)/losses
√ Applicable □ Not applicable
In RMB
| Item | 2020 | 2019 | 2018 | Note |
| Gains/losses from the disposal of non-current asset (including the write-off that accrued for impairment of assets) | -2,111,295.55 | -9,537,945.52 | 787,721.32 | Found more in ―Income from assets disposal‖, ―non-operation income & expenditure‖ |
| Governmental subsidy reckoned into current gains/losses (not including the subsidy enjoyed in quota or ration according to national standards, which are closely relevant to enterprise‘s business) | 99,043,859.77 | 103,813,820.02 | 90,401,997.63 | Found more in ―Other income‖, ―Non-operation income‖ |
| Gains/losses arising from the contingencies unrelated to the normal operation of the Company | - | -13,050,649.33 | Found more in ―Non-operation expenditure‖ | |
| Losses/gains from changes of fair values occurred in holding trading financial assets, derivative financial assets, trading financial liabilities and derivative financial liabilities, and investment income obtaining from the disposal of trading financial assets, derivative financial assets, trading financial liability, derivative financial liability and other debt investment, excluded effective hedging business relevant with normal operations of the Company | 123,242,542.42 | 27,685,917.00 | -18,928,688.87 | Found more in ―Income of fair value changes‖, ―Investment income‖ |
| Reversal of the account receivable and contract assets depreciation reserves subject to separate impairment test | 5,061,635.85 | 1,936,952.67 | 2,543,553.45 | ‖Found more in ―Account |
| receivable/other account receivable‖ | ||||
| Other non-operating income and expenses other than the above | 2,434,283.11 | 1,070,165.28 | -2,614,761.68 | ‖Found more in ―Non-operation income & expenditure‖ |
| Less: impact on income tax | 34,083,593.36 | 15,170,286.77 | 16,236,806.66 | |
| Impact on minority shareholders‘ equity (post-tax) | 1,337,093.24 | 2,902,482.15 | 1,101,317.88 | |
| Total | 192,250,339.00 | 106,896,140.53 | 41,801,047.98 | -- |
Concerning the extraordinary profit (gain)/loss defined by Q&A Announcement No.1 on Information Disclosure for CompaniesOffering Their Securities to the Public --- Extraordinary Profit/loss, and the items defined as recurring profit (gain)/loss according tothe lists of extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering TheirSecurities to the Public --- Extraordinary Profit/loss, explain reasons
□ Applicable √ Not applicable
The Company has no items defined as recurring profit (gain)/loss according to the lists of extraordinary profit (gain)/loss in Q&AAnnouncement No.1 on Information Disclosure for Companies Offering Their Securities to the Public --- Extraordinary Profit/loss,in the period.
Section III. Summary of Company Business
I. Main businesses of the company engaged in during the Period(i) Main businesses of the CompanyThe Company is one of China's major electric appliance manufacturers, possesses four major domesticmanufacturing bases in Hefei, Mianyang, Jingdezhen and Zhongshan, and two overseas manufacturing bases inIndonesia and Pakistan. Currently, we have completed the industry layout of white electricity basically, coveringthe full product line including refrigerator, washing machine, air conditioner, kitchen and bath, small householdappliances and others, at the same time, the Company enters the new industrial fields as bio-medical and withcertain achievements made.Over the past 30 years, the Company has always been adhering to the "independent innovation, created in China",and always focus on refrigeration industry without stop, elaborately building the core competitiveness ofenterprises by technological innovation and product innovation. Relying on the cutting-edge R&D team andadvanced technology, Meiling continue to achieve breakthrough results in the variable frequency, intelligence,refreshment, thin-wall, odourless, energy-saving, forced air cooling, deep cooling and other fields.The company has set up the first RoHS public testing center in Anhui Province, the national enterprise technologycenter, the national industrial design center, and the 5G industrial internet innovation application laboratory. Inrecent years, the Company has successively awarded several national honorary titles as the ―Smart RefrigeratorIntelligent Manufacturing Pilot Demonstration Project‖, the ―National Green Factory‖ and the ―National IndustrialDesign Center‖ etc.At the same time, many products of Meiling have repeatedly won a number of domestic and internationalinnovation awards, continuously demonstrating the capabilities and strength of Meiling's intelligent manufacturingand Meiling brand intelligent innovation technology. In the 2020 China Refrigerator Industry Summit Forum,Meiling Refrigerator, with its leading fresh-keeping technology and excellent quality, "M Fresh" Liulizi415WQ3S won the "Long-lasting Fresh-keeping Star", and BCD-432WPU9CX won the "Outstanding ChannelPerformance Product" Award. In the 16th China Household Appliances Innovation Achievement Appraisal,Meiling‘s ―M Fresh‖ full-curved glass BCD-680WQ3S, refrigerator ten-minute rapid odor cleaning technologyand very thin intelligent front loading washing machine MG100-14686BHAIS products all won the innovationresults award, and the moisturizing control method and application of the air-cooled water tank won the ChinaPatent Excellence Award. In addition, with its outstanding contribution to social welfare, the company won the"Special Charity Contribution Award" of China Refrigerator Industry Summit Forum and the honor of SocialCharity Demonstration Enterprise of China Household Electrical Appliances Association in 2020.
In recent years, driven by the industry transformation and upgrades and consumption upgrades, the Company hasadhered to the strategy of smart and variable frequency products, promoted the Company‘s products to transformand upgrade to become intelligent and high-end and comprehensively enhanced the competitiveness of products inthe industry by grasping the opportunities of refreshment, thin-wall, odourless, air cooling and energy efficiencyupgrades and effectively resolving the pain points of customers. Under the guidance of the ―intelligent‖ strategy,in recent year, the Company has released and listed a number of CHiQ series of smart refrigerators andair-conditioning products, ―M-Fresh‖ refrigerators and ―M-Fresh‖ comprehensive thin series products, Meilingalways leads the trend of the industry by solving the pain points of users effectively. In June 2020, Meiling's veryclean series of refrigerators, which adopted Meiling's original MNC+ odor purification technology, made its worlddebut, representing the company's third differentiated business card after Meiling Fresh and Meiling Thin-Meilingodourless. In April 2020, the new air conditioner "Xiongmaolan" was released, its intelligent cleaning and precisetemperature control further matched the use pain points of consumers. In December 2020, two new products,namely, dust-free air conditioner and full-DC inverter home multi-split air conditioner were launched. In July2020, Meiling‘s ―very thin‖ front loading washing machine made its world debut, which not only refreshed theultra-thin record of 10kg front loading washing machine, but also showed that from the full thin refrigerators tovery thin washing machines, Meiling has been focusing on user needs and accelerating to realize the integratedmarket layout of refrigerators, air conditioners and washing machines, and finally realized the implementation ofMeiling's quality, taste and brand, and injected new vitality into the high-end consumer market.
Facing the future, the Company will further improve the home internet layout, accelerate the intelligentization ofhome appliances, form a dual-growth engine of ―hardware + services‖, drive the transformation and upgrading ofthe Company‘s profitability model, investigate the new value-added service models for home applianceenterprises, meet new competition pattern in the industry, and achieve its own sustainable and stable developmentunder the guidance of the core values of ―professionalism and shared development‖. Meanwhile, based on the―Smart Home Eco-system Project‖ and the existing products, the company will enhance the R&D, manufacturing,sales and cooperative capabilities of integrated white goods so as to provide users with a complete set of smartwhite goods system solutions.In reporting period, main income of the Company coming from refrigerator (freezer), air conditioner, washingmachine, small home appliances and kitchen & toilet products etc., total amounting to 13,906.9008 million Yuan,a 90.37% of the operating income.
(2) Conditions of the industry the company involved
1.Refrigerator industry
All View Cloud (AVC) pushed total data showing that in 2020 the retail sales of China's home appliance marketdecreased by 11.3% on a year-on-year basis, in sharp contrast to that, the refrigerator market retail sales onlydecreased by 1.4% on a year-on-year basis. In addition, the global refrigerator production capacity has
significantly increased its dependence on the Chinese market. According to customs data, the export volume ofrefrigerators in 2020 increased by 35.6% on a year-on-year basis. As the core home appliance for household foodstorage and management, the demand for refrigerators is more rigid. In a complex environment, the resistancestability of the refrigerator industry is relatively strong.
2.Air conditioning industry
The air-conditioning industry has entered the stage of stock competition from the incremental market. Thedownturn in the real estate market and the increase in the number of air-conditioning owned by 100 householdshave increased year by year, resulting in a decrease in new demand. Under the influence of the epidemic, part ofthe renewal demand has been temporarily shelved, while the long-term price war has made small andmedium-sized brands difficult to survive, and the air-conditioning industry in a downward crisis is in trouble.According to the All View Cloud (AVC) push data, the China‘s retail volume of air conditioning market in 2020was 51.34 million units, a decrease of 14.8% on a year-on-year basis, retail sales amounted as 154.5 billion Yuan,decreased 21.9% from a year earlier.
3.Washing machine industry
According to the All View Cloud (AVC) omnichannel data, the retail sales of the washing machine market inChina has 7.14 billion yuan for year of 2020, a y-o-y decline of 6.2%, retail volume was 36.9 million units, 3.6%drops from a year earlier. The overall retail pace was in a downturn in the first half of the year and recovered inthe second half of the year, the online recovery was obvious and the offline recovery was slow. In terms ofproducts, in addition to the trend of large-capacity stacking washing and drying integrated machines, brandowners have also been striving to find differentiated selling points and improve product premium capabilities.With healthy washing machines as the core, washing machines with intelligent detergent feeding and washing andcare labels, silent washing machines, good-looking washing machines, and ultra-thin and embeddable washingmachines have become hot spots for market development.
II. Major changes in main assets
(1) Major changes in main assets
| Major assets | Note of major changes |
| Equity assets | Joint venture has a deficit in the Period and declare the payment of cash dividends |
| Fixed assets | Transferred from construction in progress increased in the period |
| Intangible assets | No major changes |
| Construction in progress | Construction in progress transferred to fixed assets in the period |
(2) Main overseas assets
√ Applicable □ Not applicable
| Content of assets | Reason for the formation | Asset size | Location | Operation mode | Control measure to ensure the security of assets | Income (RMB) | Foreign assets accounted for net assets of the Company | Whether exist significant impairment risk (Y/N) |
| 60% equity of Changhong Ruba Trading Company | Investment establishment | US$ 7.803 million | Pakistan | Sales | Details of risks control measures have been disclosed by the Company by way of announcement on appointed media (No. 2011-028, No. 2011-032, No. 2014-023, No. 2014-026, No. 2016-027, No. 2016-032, No. 2017-053 and No. 2017-059) on 28 May 2011, 19 April 2014, 25 March 2016 and 10 August 2017 | -11,275,321.57 | 0.01% | N |
| 40% equity of Changhong Ruba Electric Company(Private)Ltd. | Investment establishment | US$ 6.9761 million | Pakistan | Manufacture | Details of risks control measures have been disclosed by the Company by way of announcement on appointed media (No. 2011-028, No. 2011-032, No. 2014-023, No. 2014-026, No. 2017-053 and No. 2017-059) on 28 May 2011, 19 April 2014 and 10 August 2017 | -194,554.26 | -0.12% | N |
| 100% equity of CHANGHONG MEILING ELECTRIC INDONESIA. PT | Investment establishment | US$ 6 million | KELAPA GADING, JKT, Indonesia | Sales | Details of risks control measures have been disclosed by the Company by way of announcement on appointed media (No. 2016-027 and No. 2016-033) on 25 March 2016 | 1,059,456.14 | 0.48% | N |
| 100% equity of CH-Meiling International (Philippines) Inc. | Investment establishment | US$ 1 million | Philippines | sales | Details of risks control measures have been disclosed by the Company by way of announcement on appointed media (No. 2019-083) on 7 December 2019. | -1,169,089.69 | 0.11% | N |
| Other notes | N/A | |||||||
III. Core Competitiveness Analysis
(1) Brand capacity
The Company is one of the famous home appliances manufacturers in China, owns several product lines such asrefrigerator, freezing box, air conditioner, washing machine, small household appliances and biomedical etc.―Meiling‖ brand is listed as one of the most valuable brands in China. In recent years, the Company has create the
competitiveness of the brand by continuously reshaping its brand image, innovating core technology anddeveloping high-end intelligent products.In terms of reshaping brand image, in order to enhance the brand image and further expand the market influence,the Company repositioning the brand. In October 2015, the Company completely update the LOGO, andlaunching the new brand proposition of ―Meiling, let the good comes‖. Along with the release of new LOGO,Meiling will also implement a brand strategy of "Good Trilogy", including the direct sensory experience of―experience the good", the spirit soul enjoyment of ―enjoy the good‖, and the lifestyle faith of ―believe in thegood‖. In 2020, the Company hand in hand with the national badminton team, accelerate the brand image refresh.In terms of continuous innovation of core technologies, on the one hand, the company continuously promoted theinnovation of intelligent, frequency conversion, fresh-keeping and odourless technologies to maintain the leadingposition in the industry in order to meet the needs of industry and market development; on the other hand, with thehelp of consumption upgrades, in order to meet the personalized differentiation and diversified needs ofconsumers. In terms of refrigerator products, the independent research and development of core technologies suchas water molecule activation preservation technology, comprehensive thin GLS integration technology, andMCN+ clean taste preservation technology have led the refrigerator industry to return to the home field ofpreservation and fully enter the era of thin and long-lasting clean taste. In terms of washing machine products,through the development of the three black technologies of the inner cylinder cone expansion technology, theoblique angle stabilization technology, and the cloud disk condensation technology, the "thin", "large" and"simple" industry business cards for washing machines have been created. Regarding air-conditioning products,we have been adhering to the product concept of "good sleep + good air", focusing on quality, experience, andhealth for product upgrades. Strictly control quality in terms of comfort and reliability indicators, create a brandexperience of ―extremely quiet, extremely economical, and extremely intelligent‖ for air conditioners, and carryout layout around the three core functions of ―fresh air, self-cleaning, and dust-free‖ product portfolio.In terms of high-end intelligent product development, the company promoted product innovation throughcontinuous technological innovation. In recent years, the company has successively released CHiQ intelligentseries products, ―M-Fresh‖ refrigerators, ―M-Fresh‖ full-thin series products, ―very-clean‖ series of refrigeratorproducts, ―very-thin‖ series of washing machine, voiceprint cabinet, dust-free separated and sleep separated airconditioner etc, created three brand business cards, i.e. ―Meiling Fresh‖ and ―Meiling Thin‖, and ―Meiling Clean‖through the introduction of the aforementioned high-end intelligent products, which not only met market demandin a timely manner, but also enriched and enhanced the brand image.Promoting the remodeling of brand ability through the continuous upgrading of products, Meiling will realize ayoung, international and professional brand image. Through gradual construction of the ideas of Wonderful StartPoint, Wonderful Life Circle and Wonderful Ecology Circle, Meiling has become a people-oriented artistspecializing in white appliances, a smarter scientific expert and a more reliable house keeper.
(2) Product capacity
In more than 30 years, the Company always focus on the refrigeration industry, has developed a variety of
different types of refrigerator products, including three serial products as ―CHiQ, Athena and MELNG美菱‖. Itmainly includes the "Very Clean" series fresh-keeping refrigerators equipped with odor purification technology,the BCD-502W series refrigerators extending from comprehensive thin products, the CHiQ series high-endintelligent refrigerators, the 400L multi-door refrigerators (BCD-406W, BCD-415W, BCD-425W) series products,the limit cost BCD-632W side-by-side combination series refrigerators, the 0.1 degree double precision inverterrefrigerators, new European standard energy efficiency upgrade products, North American air-cooled products,vertical display cabinets, BC/BD-100DT product freezer with low-cost color plate box, 10 kg impeller-type serieswashing machines, XC-618L smart blood refrigerator, air conditioner "all dust-free" Q6C on-hook products,voiceprint cabinets and sleep on-hooks, etc. Especially the "Very Clean" series clean odor refrigerators released bythe company apply multi-metal oxide catalytic technology and use a catalyst made of a special process toefficiently catalyze the air to produce active oxygen, which can quickly remove unpleasant odor and kill bacteria.The "Very Thin" drum series washing machine is developed with ultra-thin platform technology, with three coretechnologies including inner drum diameter, drying and condensation, and slightly inclined drum, its depthdimension is reduced by 20% under the condition that the width of the whole machine remains unchanged, andthe main performance index has reached the advanced level of domestic and foreign drum washing machines."Dust-free" air-conditioning products adopt the industry's first fully enclosed dust-free cabin technology toachieve a "zero gap" full closure of the air inlet, there is nowhere for dust to enter or hide, perfectly realizing thecompletely dust-free innovative black technology for power on and power off .The Company owned advanced development and quality assurance systems, passed management systemcertification of ISO9001, ISO14001 and ISO45001. Product quality has been quality assurance and productperformance is reliable. At the same time, the company has authoritative certifications including ―national-leveltechnology center‖, ‖national-level industrial design center‖, ―national-level intellectual property demonstrationenterprise‖ as strong guarantees. In terms of technical research, it is committed to applying basic technologyresearch and industrialization transfer, and has established a technical strategic plan with ―intelligence, frequencyconversion, simulation‖ as core technologies, and ―energy saving, fresh keeping, and new materials‖ as keytechnologies, annual technical research project achievements conversion rate reached 85% above. In terms ofproduct development, based on the technological research results and consumption upgrade requirements, updatedthe annual product planning and development outline, increasingly upgraded the product structure, continued toincrease the development of mid-to-high-end products with characteristic of thin-wall, air-cooling, large-volume,frequency conversion, intelligence, simulation, smart cleaning, sterilization, dust removal, silent and developedcompetitive core products. At the strategic level of the company, continued to adhere to the core idea of―intelligent strategy, productism‖, and promoted the company's product transformation, technological innovation,and industry leadership by advancing the subsequent research and development, promotion and technical updateof intelligent and frequency conversion products. In addition, the company shall continue to improve the homeappliance product line, lay out multiple product businesses such as air conditioner, washing machines, kitchen andbath products, small home appliances, biomedical, and built a comprehensive home appliance business.
(3) Operation capacity
The Company continues to conducted benchmark management to improve its basic management level. Meanwhile,constantly improve the internal management ability by continuously improve the upgrading in aspect of efficiencyof personnel, money and materials. A performance review and sharing system has been established with cleartarget and quantity index based on performance and layered incentive sharing system, thus to inspire the internalproduction capacity. Under the mainline of value chain management, the Company continued to carry out valuecreation and improve its competitiveness. Its ability to prevent risks has been also strengthened throughcontinuous improvement of internal control system.
(4) Marketing ability
The company has established a relatively complete sales network and service system to accelerate marketingtransformation and achieve the marketing transformation from product line-oriented sales management tochannel- and user-oriented business services, from single-category marketing to full-category marketing. Duringthe reporting period, used smart trading platforms to effectively improve operating efficiency, reduce costs, andaccumulate strength for subsequent development. In overseas markets, the company increased the investments inoverseas marketing agencies, research and development bases, production bases, etc., cooperated withinternationally renowned household appliance brands and distributors, continued to optimize the customerstructure and enhance the product structure, actively explored overseas markets, and exported products to morethan 130 countries and regions.
Section IV. Discussion and Analysis of the Operation
I. IntroductionIn 2020, in the face of multiple severe impacts such as the sudden COVID-19 epidemic, the deep recession of theworld economy, trade frictions, and the rise in bulk materials, the home appliance industry where the company islocated has encountered unprecedented challenges, especially the impact on offline channels. According to AVCdata, the offline retail sales of the refrigerator industry fell by 13%, air conditioners fell by 32%, washingmachines fell by 17%, and the overall market in the industry was sluggish. In 2020, the internal and externalenvironment were beset with difficulties. In this context, affected by factors such as the improvement ofconsumers' health demands and the more rational consumption behaviors, enterprises were forced to accelerate theadjustment of product structure, accelerate the improvement of product quality and service capabilities, andaccelerate the innovation of channels.During the reporting period, the company took "one side and two points" as its guiding ideology, that is, usingcommercial inventory as the core to drive supply chain, manufacturing, logistics, etc., so as to improve overallefficiency; through competition against benchmarking, output online and offline competition strategies andproduct strategies that highly match the market, and implemented the annual business policy of "productleadership, marketing transformation, efficiency breakthrough, team activation". Facing the impact of theepidemic, the company‘s business units took the initiative and turned crises into opportunities, focusing on theeffective implementation of existing orders, taking advantage of opportunities or policies to grab new orders, andensured the safety of supply chain and the continuous improvement of capacity utilization. At the end of thesecond quarter, the market stopped slipping and entered the normal track of production and operation.
II. Main Business Analysis(i) OverviewShows no difference with the summary disclosed in Report of the Board of Director
□Yes √No
1. Introduction
In 2020, refrigerator and freezer business achieved revenue of RMB 7.678 billion, with 2.87% down y-o-y;air-conditioning business achieved revenue of approximately RMB 4.619 billion, with 21.82% down y-o-y.;washing machine business achieve revenue of approximately RMB 0.467 billion, with 7.53% declined from a yearearlier.; other products of small home appliance and kitchen & toilet products and cooling parts have revenueapproximately as RMB 1.391 billion, with 16.40% up y-o-y. meanwhile, the business aboard has a revenue ofRMB 4.980 billion, 27.43% increased from a year earlier.
2. Progress of the company's development strategy and business plan during the reporting periodDuring the reporting period, in accordance with the development strategy and operating principles of ―productleading, marketing transformation, efficiency breakthrough and team activation‖ in 2020, the company hasdeployed the annual business plan, arranged the production and management, and carried out the followingactivities:
(1) Product leading
In June 2020, the company and JD.com jointly released the world‘s first very clean refrigerator 365WPUCA. Theoriginal MNC+ long-lasting odor purification and sterilization technology is used to generate high reactive oxygenspecies (ROS) through the catalysis of multiple metal oxides such as manganese, copper, iron, and cerium, andthen the odor molecules produced by a variety of foods in the refrigerator undergo a chemical reaction to becomecarbon dioxide and water, thereby restoring the fresh original flavor, and overcoming the disadvantages oftraditional refrigerators such as slow odor purification, poor effect, and short life. After owning "Meiling Fresh"and "Meiling Thin", the third "Meiling Clean" business card pushes the brand image of Meiling refrigerators to ahigher level, showing Meiling's new blueprint for future refrigerators for consumers and the industry.In July 2020, Meiling's self-produced "very thin" front-loading washing machine made its debut. The "very thin"front-loading washing machine is centered on larger/thinner/healthier, and is committed to solving theconsumption pain points that the front-loading washing machine is difficult to embed. The "very thin"front-loading washing machine uses taper expansion technology, inclined tube stabilization technology and clouddisk condensation technology to increase the diameter of the inner drum to 530mm and reduce the depth of theinner drum to 487mm, which is 10cm thinner than traditional washing machines and is the thinnest amongproducts of the same specification in the industry. The washing machine is perfectly embedded in the consumer'shome. After the self-production of Meiling front-loading and pulsator washing machine, a new business card―Thin‖ increased after the ―Big‖ and ―conciseness‖In April 2020, "Panda Lazy" new product of Changhong Air-conditioner was released online. The smart cleaningfunction of this product can deep clean the evaporator, ensure the output air is clean and hygienic, and solved thepain points that consumers can only simply clean the air conditioner filter. At the same time, the product hasprecise temperature control and small temperature fluctuations. The precise temperature control of 0.1°C creates acomfortable and constant temperature environment, which further meets the pain points of users. In December2020, the company launched two new products, Q6C dust-free air conditioner and full DC inverter homemulti-split air conditioner. Q6C combines the fourth-generation intelligent cleaning technology and the reversebalance 57℃ high temperature sterilization technology, breaks through the high temperature limit of ordinary airconditioning heating, and effectively solves the two major pain points of "easy to dirty, difficult to clean" of airconditioners through the deep cleaning of the evaporator and 57℃ high temperature sterilization, and trulyprovides consumers with a ―dust-free air supply‖ solution for a dusty environment.In 2020, the third-generation dual-engine variable frequency ultra-low temperature refrigeration storage box
DW-HL680 launched by Zhongke Meiling has been fully marketed. Through the dual independent frequencyconversion self-overlapping refrigeration system, the dual control system for mutual backup and embeddedindependent intelligent wireless monitoring can improve operating efficiency, enhance equipment reliability andraise the safety of sample storage to a new level with its high-efficiency refrigeration system, which is wellreceived by the market.In the 16th China Household Appliances Innovation Achievement Appraisal, Meiling's M fresh full-curved glassBCD-680WQ3S, refrigerator‘s 10-minute fast odor removing technology and very thin intelligent drum washingmachine MG100-14686BHAIS all won the innovation achievement awards, and the moisturizing control methodand application of air-cooled water tank won the China Patent Excellence Award.During the reporting period, in terms of enhancing product competitiveness, the company's core refrigeratorproducts revolved around "fresh, thin, and clean", the air-conditioning products revolved around "extremely quiet,extremely economical, and extremely intelligent", the washing machine products revolved around "thin, large, andsimple", the kitchen, bathroom and small home appliances revolved around "influential brands of water ecologicalhousehold appliances and operational services", the biomedical products were deployed around "cold chain andhealthy market opportunities", so as to strive to create differentiated and high-profit "competitive products" withMeiling characteristics. At the same time, through benchmarking with competing products, strengthening cost andefficiency leadership, creating cost-effective "hot sale", the company has been striving to achieve themarket-driven goals of "User-centric"..
(2) Marketing transformation
In the domestic market, under the guidance of the "one side, two points" strategy, we insist on "improvingefficiency and building capabilities", while taking advantage of the digital trend to accelerate digitaltransformation in marketing and management. At the same time, aiming at the benchmark, carry out the work ofimproving efficiency and reducing costs. The fierce competition in the domestic refrigerator and washing machinemarket, coupled with the pressure of rising material costs, the company's refrigerator and washing machineproducts were squeezed and its profitability has declined. Domestic air conditioners have been greatly affected bythe epidemic, the decline in scale, and the profitability also has declined.In the overseas market, driven by the business strategy of ―expanding scale quickly with reasonable profits‖, thecompany ―expanded incremental markets externally and grasped operating efficiency internally‖, overcame theimpact of the epidemic and achieved an increase in revenue from refrigerators and air conditioners, hit a new high;the operating quality continued to improve, the product structure continued to enhance, and the proportion ofmid-to-high-end products continued to increase. At the same time, it actively expanded overseas private brandsales. Under the epidemic, through the policy of guaranteeing delivery internally and grabbing orders externally,overseas refrigerator and washing machine revenue increased by more than 35% on a year-on-year basis, andoverseas air conditioners increased by nearly 15% on a year-on-year basis, both reaching record highs.The kitchen, bathroom and small home appliance industries adjusted their strategies and carried out industrialintegration, and revenue increased by nearly 15%. Biomedical has seized the incremental opportunity brought by
the epidemic, and its revenue has increased by nearly 70%.
(3) Efficiency breakthrough
Implement "one side and two points", fully benchmark against each other, and improve efficiency. During thereporting period, the company continued to promote the special work of capital pressure control, and the capitaloperation efficiency was greatly improved on a year-on-year basis through pressure control of inventory, accountreceivables, and prepayments. On the development side, achieved by over 5% in R&D efficiency through thefront-end input checks, modular design, and intelligent R&D platform applications. At the production andmanufacturing side, through increase the production and efficiency, focused on promoting key projects such as"five-izations‖, ―three easy" and lean production, a breakthrough in cost has been achieved, and the manufacturingcosts for a single refrigerator has dropped by more than 10%.
(4) Team activation
During the reporting period, the company gradually promoted the construction of the three pillars of humanresources according to the plan, and provided comprehensive strategic guidance for the transformation of humanresources, the development of talent organizations, and the optimization of salary incentives; continued tovigorously and continuously implement the "Yongquan Plan" to select and train successors for key positions, andimprove the construction of talent reserve; through the implementation of the normalized competitive recruitmentmechanism and reserve talent promotion mechanism for cadres, strengthened the construction of professional andtechnical personnel, built a company-level expert team, and expanded the career path of employees; explored thevitality of employee development mechanism, practiced the "co-creation and sharing" incentive mechanism,reconstructed the incentive mechanism, encouraged value creation of all employees, and further activated thevitality of the team.
(5)Output of the refrigerator/cabinet hit a new high
At the beginning of the year, we overcame epidemic prevention pressures, personnel shortages, and materialshortages, resumed work and production, and gradually increased capacity utilization rate. By winning the"Shangganling" battle, sales demand was guaranteed, and the output has repeatedly created new highs since Apriland achieved "fighting the epidemic and stopping the decline in the first half of the year, and the overallovertaking in the second half of the year‖, the annual output hit a record high.(ii) Revenue and cost
1. Constitute of operation revenue
In RMB
| 2020 | 2019 | Increase/decrease y-o-y (+,-) | |||
| Amount | Ratio in operation revenue | Amount | Ratio in operation revenue | ||
| Total operation revenue | 15,388,050,229.67 | 100% | 16,553,252,894.93 | 100% | -7.04% |
| According to industries | ||||||||
| Manufacture of household appliances | 14,154,240,737.32 | 91.98% | 15,442,277,862.82 | 93.29% | -8.34% | |||
| Other business | 1,233,809,492.35 | 8.02% | 1,110,975,032.11 | 6.71% | 11.06% | |||
| According to products | ||||||||
| Refrigerator, freezer | 7,677,640,685.10 | 49.89% | 7,904,855,681.11 | 47.76% | -2.87% | |||
| Air-conditioning | 4,619,288,893.44 | 30.02% | 5,908,762,786.45 | 35.70% | -21.82% | |||
| Washing machine | 466,805,675.50 | 3.03% | 434,111,186.88 | 2.62% | 7.53% | |||
| Small appliance and kitchen & toilet | 1,143,165,497.06 | 7.43% | 993,937,389.59 | 6.00% | 15.01% | |||
| Other products | 247,339,986.22 | 1.61% | 200,610,818.79 | 1.21% | 23.29% | |||
| Other business | 1,233,809,492.35 | 8.02% | 1,110,975,032.11 | 6.71% | 11.06% | |||
| According to region | ||||||||
| Domestic | 10,398,533,564.21 | 67.58% | 12,638,965,715.02 | 76.35% | -17.73% | |||
| Foreign | 4,989,516,665.46 | 32.42% | 3,914,287,179.91 | 23.65% | 27.47% | |||
2. About the industries, products, or regions accounting for over 10% of the company’s operating income oroperating profit
√ Applicable □ Not applicable
In RMB
| Operating revenue | Operating cost | Gross profit ratio | Increase/decrease of operating revenue y-o-y | Increase/decrease of operating cost y-o-y | Increase/decrease of gross profit ratio y-o-y | |
| According to industries | ||||||
| Manufacture of household appliances | 14,154,240,737.32 | 11,709,373,550.27 | 17.27% | -8.34% | -5.69% | -2.33% |
| According to products | ||||||
| Refrigerator, freezer | 7,677,640,685.10 | 6,148,588,872.52 | 19.92% | -2.87% | 1.38% | -3.36% |
| Air-conditioning | 4,619,288,893.44 | 4,053,771,792.10 | 12.24% | -21.82% | -18.87% | -3.19% |
| Small appliance and kitchen & toilet | 1,143,165,497.06 | 958,061,925.19 | 16.19% | 15.01% | 14.72% | 0.21% |
| According to region | ||||||
| Domestic | 9,174,395,337.92 | 7,413,002,117.96 | 19.20% | -20.46% | -18.00% | -2.42% |
| Foreign | 4,979,845,399.40 | 4,296,371,432.31 | 13.72% | 27.43% | 27.26% | 0.11% |
Under circumstances of adjustment in reporting period for statistic scope of main business data, adjusted mainbusiness based on latest one year‘s scope of period-end
□ Applicable √ Not applicable
3. Income from physical sales larger than income from labors
√ Yes □ No
| Industries | Item | Unit | 2020 | 2019 | Increase/decrease y-o-y (+,-) |
| Manufacture of household appliances industry | Sales volume | 10 thousand pieces/set | 2,086.39 | 1,778.48 | 17.31% |
| Production | 10 thousand pieces/set | 2,103.47 | 1,747.30 | 20.38% | |
| Inventory | 10 thousand pieces/set | 131.29 | 114.21 | 14.96% |
Reasons for y-o-y relevant data with over 30% changes
□ Applicable √ Not applicable
4. Fulfillment of the company’s signed significant sales contracts up to this reporting period
□ Applicable √ Not applicable
5. Constitute of operation cost
Industry classification
In RMB
| Industries | Item | 2020 | 2019 | Increase/decrease y-o-y (+,-) | ||
| Amount | Ratio in operation cost | Amount | Ratio in operation cost | |||
| Manufacture of household appliances | Raw material | 10,753,506,155.27 | 91.84% | 11,370,677,092.45 | 91.58% | 0.26% |
Note: nil
6. Whether the changes in the scope of consolidation in Reporting Period
√ Yes □ No
More details can be seen in the report ―VII. Changes in the scope of the merger‖ and ―VIII. Interests in otherentities‖ of ―Section XII Financial Report‖
7. Major changes or adjustment in business, product or service of the Company in Reporting Period
□ Applicable √ Not applicable
8. Major sales and main suppliers
(1) Major sales client of the Company
| Total top five clients in sales (RMB) | 6,584,401,244.38 |
| Proportion in total annual sales volume for top five clients | 42.79% |
| Proportion of the related parties‘ sales in total annual sales volume for top five clients | 31.53% |
Information of top five clients of the Company
| Serial | Name | Sales (RMB) | Proportion in total annual sales |
| 1 | Client I | 4,366,577,060.10 | 28.38% |
| 2 | Client II | 787,849,299.72 | 5.12% |
| 3 | Client III | 528,720,339.97 | 3.43% |
| 4 | Client IV | 484,102,220.00 | 3.15% |
| 5 | Client V | 417,152,324.59 | 2.71% |
| Total | -- | 6,584,401,244.38 | 42.79% |
Other situation of main clients
□ Applicable √ Not applicable
(2) Main suppliers of the Company
| Total purchase amount from top five suppliers (RMB) | 2,439,049,271.05 |
| Proportion in total annual purchase amount for top five suppliers | 19.70% |
| Proportion of related party‘s purchase in total annual purchase amount for top five suppliers | 11.96% |
Information of top five suppliers of the Company
| Serial | Name | Sales (RMB) | Proportion in total annual purchase |
| 1 | Supplier I | 597,140,366.93 | 4.82% |
| 2 | Supplier II | 504,983,027.54 | 4.08% |
| 3 | Supplier III | 468,804,500.00 | 3.79% |
| 4 | Supplier IV | 453,129,714.63 | 3.66% |
| 5 | Supplier V | 414,991,661.95 | 3.35% |
| Total | -- | 2,439,049,271.05 | 19.70% |
Other notes of main suppliers of the Company
□ Applicable √ Not applicable
(iii) Expenses
In RMB
| 2020 | 2019 | Increase/decrease y-o-y (+,-) | Note of major changes | |
| Sales expense | 1,945,803,799.56 | 2,320,362,519.95 | -16.14% | Market supporting fee declined in the Period |
| Administrative expense | 280,245,684.56 | 330,687,143.82 | -15.25% | - |
| Financial expense | -5,529,984.84 | -14,216,050.60 | 61.10% | Exchange losses increased in the Period |
| R&D expense | 380,638,922.91 | 334,218,689.69 | 13.89% | - |
(iv) Investment in R&D
√ Applicable □ Not applicable
In 2020, the Company continues to insisted on the upgrade of fundamental research on core technology intechnical research, maintained its technological advantages, expanded the innovation and upgrade in thetechnological field, made breakthroughs in differentiation, continued to promote product upgrades, and led thedevelopment orientation in the industry.In terms of the refrigerator, the Company focused on its technology planning and core technology for technologydevelopment, and carried out the research on human-computer interaction techniques, food refreshmenttechnology, energy saving and mute technology, wide rotation speed variable frequency technology, air ductdesign technology, and vacuum insulation technology, etc. Among them, the "Comprehensive Thin" seriesrefrigerators has continued to expand the product lineup, enhance product competitiveness, and extend from thehigh-end market to the mid-range market. The household freezers with large volume rate have beensimultaneously launched in the domestic and foreign markets, and the comprehensive upgrade of householdfreezers has been completed. The launch of ―Very Clean‖ technology and products gave new connotations to the"M Fresh" series refrigerators, which further enhanced the company‘s brand influence and reputation; in addition,through the continuous upgrade and application of intelligent and frequency conversion technology, thecontinuous improvement of the competitiveness of intelligent, inverter refrigerators was realized, invertertechnology has kept the leading position in the industry. The company accelerated the promotion of 0.1℃ inverterand air-cooled technologies and products to overseas markets, frequency conversion and air-cooled refrigeratorshas been rising rapidly in export products. The "micro-frost" series refrigerators have been rapidly promotedoverseas to meet the differentiated and personalized demands in overseas markets. The company seized the energyefficiency upgrade opportunities of major developed economies, quickly launched a series of products that meetthe new energy efficiency standards, and obtained first-mover advantages.
In air conditioning, according to the strategic planning of holistic intelligent air ecosystem, the Company corewith the technical strategic as intelligence and frequency conversion, carrying out variable frequency control indepth, CFD&CAE simulation, intelligent voice, and basic core ability construction as recognition and interactionetc. Focusing on the comfort and reliability of air conditioners, the establishment of the fifth-generation precisiontemperature control technology platform based on the PMV comfort control of new sensors such as infrared and
the motor winding temperature measurement method has been completed; the simulation technology has revolvedaround the vibration of the compressor and system pipelines, and completed the development of the optimizationcalculation software for the pipeline stress of the four-way valve of the air conditioner, which greatly improvedthe efficiency and quality of research and development. It‘s the first in the industry to launch the air-conditioningexternal unit single-board dual-drive onboard PFC technology solution with less electrolytic capacitors and thesecond-generation on-hook internal unit dual-board dual-chip direct drive technology solution, which has beenapplied in products in batches. It launched "Xiongmaolan" series specifications, T-shaped cabinet products withdifferent energy efficiency levels with Changhong's characteristics, and Q6C on-hook products with the "alldust-free" concept, which came into the market in batches, and earned a good reputation from the market.In terms of biomedicine, Zhongke Meiling, the company's NEEQ listed subsidiary, has achieved a number of keytechnological breakthroughs relying on its profound research experience and technology accumulation in the fieldof cryogenic storage. The dual-engine variable frequency series ultra-low temperature freezer DW-HL680 hasbeen developed and launched, it adopts a dual independent frequency conversion self-cascade refrigeration system,is equipped with a dual backup control system, and is embedded with independent intelligent wireless monitoring,which raises the safety of sample storage to a new level. The new series blood bank refrigerator XC-618L hasbeen developed and come into the market, with its safe and reliable refrigeration system, multiple noise reductiondesign, intelligent blood bank management system and precise temperature control system, it provides a reliableequipment environment for the high-standard storage and management of blood. The brand new series of ice-linedrefrigerators are developed and marketed, which is the first domestic ice-lined refrigerator that meets therequirements of the new PQS regulations. Many life sciences and laboratory products have entered the trialproduction stage, such as clean benches, chromatography cabinets, etc., the ecosystem layout of Meilingbiomedical products is gradually advancing and landing. In 2020, a total of 90 intellectual property patents wereapplied in the whole year by Zhongke Meiling, an increase of 40% over last year, including16 invention patents,40 utility models, 31 appearance patents and 3 software copyrights; obtained 76 authorized intellectual propertyrights, including 4 invention patents, 40 utility models, 29 appearance patents and 3 software copyrights.In terms of washing machines, the company increased the strategic layout of washing machine product lines, andtook the lead in launching the "Very Thin" drum series products, which adopted ultra-thin platform technologydevelopment and three domestic pioneering technologies such as oblique drum stabilization, cone expansion andcloud disk condensation achieved the super large diameter of 530MM of the inner drum, significantly improvedthe space utilization and the effect of efficient drying of clothes, so as to achieve a slim body of 487MM, andfinally achieve the goal of freely embedding the washing machine, reducing the space and caring for the clothes.In the impeller-type washing machines, it developed and put the 580 platform into production, which improvedthe volume of impeller-type products; the newly developed 610 and 660 series brought a deeper level of washingcare to consumers through the appearance design of the high-end model equipped with the waterfall washingfunction. Regarding the core technology of the electronic control system, the company realized the independentresearch and development of the whole series of impeller-type full series control panels, effectively enhanced thecore competitiveness of the products. In 2020, a total of 60 patent applications have been filed for washingmachines, including 35 invention patents and 25 utility model patents.
In terms of kitchen and bathroom appliances and small household appliances, the company built a large kitchenand bathroom R&D center in Zhongshan, Guangdong, and a small household appliance R&D center in Hefei,Anhui, followed the strategic deployment of smart kitchens and differentiated products, took the range hood as thecenter of the smart kitchen, and connected kitchen stoves, disinfection cabinets, steaming ovens, dishwashers,water heaters, and water purifiers to achieve interconnection, voice control, security guards, smart cooking andother functions. At the same time, the company developed DC frequency conversion technology and applied it torange hoods and gas water heater products. The company had innovative design of stove which has seven cavitiesand multiple burners, while the unique 45° sawtooth design greatly reduces the risk of tempering; made acomprehensive layout of zero cold water gas water heaters; designed and developed, and mass-producedcondensing wall-mounted stove which can save more than 20% of gas than ordinary wall-mounted stove; andcompleted the development and marketing of community water vending machines for water purifiers equippedwith a self-developed software system. For small household appliances, the company developed tea art machineproducts, overcame the core technical problems of warm boiled water heat exchange, tea soup separationtechnology, and 3 seconds instant heat; completed the software and hardware design, structural design and APPdevelopment of the Bluetooth module of the Bluetooth anti-lost device, and achieved mass production; carried outthe technical research on locator products, and completed the design of software, hardware and structural schemewith the core technologies such as GPS, 4G CAT1; completed the development of voice tea bar machine products,and achieved voice control and APP intelligent control, and the product has been smoothly marketed. Regardingthe export of small household electrical appliances, in view of the African market and the dietary characteristics ofAfrican consumers, Xima machine products have been innovatively designed and developed and exported to themarket, and corresponding overseas patents have been simultaneously applied for. In 2020, a total of 13 patentshave been applied for, including 7 invention patents, 4 utility model patents, and 2 appearance patents.R&D investment of the Company
| 2020 | 2019 | Change ratio (+,-) | |
| Number of R&D (people) | 1431 | 1,529 | -6.41% |
| Ratio of number of R&D | 19.62% | 16.62% | Increase by 3 percentage points |
| R&D investment (RMB) | 556,253,003.33 | 782,372,129.86 | -28.90% |
| R&D investment as a percentage of operating income | 3.61% | 4.73% | Decrease by 1.12 percentage points |
| Capitalized amount of R&D investment (RMB) | 134,284,644.90 | 128,970,096.82 | 4.12% |
| Capitalized R&D investment as a percentage of R&D investment | 24.14% | 16.48% | Increase by 7.66 percentage points |
The reason of great changes in the proportion of total R&D investment accounted for operation income than lastyear
√Applicable □ Not applicable
During the reporting period, affected by the COVID-19 epidemic, the Company focus on resumption of the work
and production in the first half of the year, and some R&D projects were postponed resulting in a y-o-y decreasein amount of R&D investment.Reason for the great change in R&D investment capitalization rate and rational description
□ Applicable √ Not applicable
(v) Cash flow
In RMB
| Item | 2020 | 2019 | Increase/decrease y-o-y(+,-) |
| Subtotal of cash in-flow from operation activity | 16,120,150,110.69 | 17,770,961,164.50 | -9.29% |
| Subtotal of cash out-flow from operation activity | 14,716,633,888.23 | 16,485,957,179.46 | -10.73% |
| Net cash flow from operation activity | 1,403,516,222.46 | 1,285,003,985.04 | 9.22% |
| Subtotal of cash in-flow from investment activity | 1,171,001,295.31 | 3,292,055,574.16 | -64.43% |
| Subtotal of cash out-flow from investment activity | 1,801,306,139.22 | 2,415,012,035.85 | -25.41% |
| Net cash flow from investment activity | -630,304,843.91 | 877,043,538.31 | -171.87% |
| Subtotal of cash in-flow from financing activity | 2,049,754,910.57 | 1,731,668,612.80 | 18.37% |
| Subtotal of cash out-flow from financing activity | 1,748,483,992.86 | 3,001,416,948.24 | -41.74% |
| Net cash flow from financing activity | 301,270,917.71 | -1,269,748,335.44 | 123.73% |
| Net increased amount of cash and cash equivalent | 1,039,722,339.59 | 901,164,287.58 | 15.38% |
Main reasons for y-o-y major changes in aspect of relevant data
√Applicable □Not applicable
The significant change in net cash flows from investment activities was mainly due to a y-o-y decline in cashreceived from the Company‘s recovery of investments during the Period.The significant change in net cash flows from financing activities was mainly due to a y-o-y decrease in cash paidby the Company for debt repayment during the Period.Reasons of major difference between the cash flow of operation activity in report period and net profit of theCompany
√Applicable □Not applicable
Mainly due to the increase in inventories and operating payable at end of the reporting period compared to thebeginning of the year.III. Analysis of the non-main business
√Applicable □ Not applicable
In RMB
IV. Analysis of assets and liability
(i) Major changes of assets compositionAdjust relevant items of financial statements at the year of fist implementation of the new revenue standards ornew leasing standards since 2020
√Applicable □Not applicable
In RMB
| Year-end of 2020 | Year-begin of 2020 | Ratio changes(+,-) | Note of major changes | |||
| Amount | Ratio in total assets | Amount | Ratio in total assets | |||
| Monetary fund | 6,594,786,789.98 | 40.95% | 5,499,601,030.64 | 38.72% | 2.23% | Mainly due to the increase of net cash flow from the company's operating activities in the current period. |
| Account receivable | 1,130,275,780.66 | 7.02% | 1,387,961,981.66 | 9.77% | -2.75% | Due to accelerated turnover of the account receivable |
| Inventory | 1,715,354,951.43 | 10.65% | 1,460,910,189.06 | 10.29% | 0.36% | Turnover of the inventory declined in the Period |
| Investment real estate | 53,888,462.00 | 0.33% | 96,343,760.13 | 0.68% | -0.35% | Due to the transfer of investment real estate to fixed assets in the Period |
| Long-term equity investment | 76,982,822.38 | 0.48% | 88,556,511.70 | 0.62% | -0.14% | Joint venture has a deficit in the Period and declare the payment of cash dividends |
| Fix assets | 2,391,859,440.31 | 14.85% | 2,180,572,946.87 | 15.35% | -0.50% | Transferred from construction in progress increased in the period |
| Construction in progress | 60,775,088.96 | 0.38% | 252,494,792.31 | 1.78% | -1.40% | Construction in progress transferred to fixed assets in the period |
| Short-term loans | 1,336,209,050.55 | 8.30% | 1,103,991,045.96 | 7.77% | 0.53% | Short-term loans increased in the Period |
| Long-term loans | 188,231,439.30 | 1.17% | 401,280,000.00 | 2.83% | -1.66% | The long-term loans due within one year |
| Amount | Ratio in total profit | Note | Whether be sustainable (Y/N) | |
| Investment income | 78,127,214.62 | -90.97% | Gains on delivery of the forward foreign exchange contracts in the period | N |
| Gains/losses from fair value changes | 41,614,800.19 | -48.46% | Gains in assessment of current forward foreign exchange contract in the period | N |
| Asset impairment | -78,711,657.91 | 91.65% | Provision for inventory depreciation and accrual of intangible assets impairment increased in the period | N |
| Non-operation income | 8,468,605.41 | -9.86% | N | |
| Non-operation expenditure | 7,644,641.64 | -8.90% | N | |
| Credit impairment | -17,058,488.00 | 19.86% | N |
(ii) Assets and liability measured by fair value
√Applicable □ Not applicable
In RMB
from parent company were re-classified
Items
| Items | Amount at the beginning period | Changes of fair value gains/losses in this period | Accumulative changes of fair value reckoned into equity | Devaluation of withdrawing in the period | Amount of purchase in the period | Sales in the period | Other changes | Amount at end of the period |
| Financial assets | ||||||||
| 1.Trading financial assets (derivative financial assets excluded) | 7,730,268.92 | 39,512,070.15 | 47,242,339.07 | |||||
| 2.Derivative financial assets | 1,632,388,702.83 | 1,632,388,702.83 | ||||||
| 3.Other debt investment | 45,000,000.00 | 5,608,931.34 | 500,000,000.00 | 2,460,000.00 | 548,148,931.34 | |||
| Subtotal of financial assets | 52,730,268.92 | 45,121,001.49 | 500,000,000.00 | 2,460,000.00 | 1,632,388,702.83 | 2,227,779,973.24 | ||
| Above total | 52,730,268.92 | 45,121,001.49 | 500,000,000.00 | 2,460,000.00 | 1,632,388,702.83 | 2,227,779,973.24 | ||
| Financial liabilities | 1,081,534.93 | 3,506,201.30 | -3,659.72 | 4,584,076.51 | ||||
Other changes:
Other changes in the financing of accounts receivable were that the company reclassified the bills receivables thatboth aimed at collecting contractual cash flow (collection) and selling (endorsed or discounted) into accountsreceivable financing during the current period. Other changes in financial liabilities are due to differences in theevaluation and conversion of forward foreign exchange contract of the subsidiary Indonesian Changhong .
Whether there have major changes on measurement attributes for main assets of the Company in report period ornot
□Yes √ No
(iii) Assets right restricted ended as reporting period
Ended as the reporting period, the Company has no major assets been closed down, detain, freeze or pledge and guarantee. As for
other assets have restriction on rights found more in relevant content of ―57. Assets with restricted ownership or use rights‖ in ―VI.Note of consolidate financial statement‖ carried under Section XII. Financial ReportV. Investment(i) Overall situation
√Applicable □ Not applicable
| Investment in the reporting (RMB) | Investment in the same period of last year ( RMB) | Changes |
| 662,169,149.17 | 37,591,140.00 | 1,661.50% |
(ii) The major equity investment obtained in the reporting period
√Applicable □ Not applicable
In RMB
| Name of invested | Principal business | Method of investment | Amount of investment | Shareholding ratio | Capital sources | Partners | Term of investment | Type of products | Status as of the balance sheet date | Expected return | Current investment profit and loss | Whether involved in a lawsuit(Y/N) | Date of disclosure (if applicable ) | Index of disclosure (if applicable ) |
| Anhui Tuoxing Science and Technology Co., Ltd.(note 1) | Technology research and development, technical consulting, technical services, processing, sales, design, installation, maintenance of refrigeration equipment; mechanical and electrical equipment installation; warehousing services (except dangerous goods); processing and sales of metal products. | Newly established | 10,000,000 | 63.2683% | Own fund | N/A | Long-term | R&D, production and sales of the cryogenic refrigeration equipment | Contributed 5 million yuan in the reporting period | Not applicable | 1,470,481.65 | N | 2019-4-20 | Juchao Website: http://www.cninfo.com.cn (Notice No.: 2019-025) |
| CH-Meiling International (Philippines) Inc. | Engage in the import & export, wholesale and distribution of all household appliances within the scope permitted by the law | Newly established | US$ 1 million | 100% | Own fund | N/A | 50 years | Import & export, wholesale and distribution of household appliances | Contributed 1 million US dollar in the reporting period (exchange rate of USD to RMB is converted according to 6.8891) | Not applicable | -1,169,089.69 | N | 2019-12-07 | Juchao Website: http://www.cninfo.com.cn (Notice No.: 2019-083) |
| Zhongshan Changhong Electric Co., Ltd. | Production: air conditioners, refrigerators and freezers, heat pumps, water heaters, air conditioning fans, electric fans, humidifiers, electric heaters, clothes dryers, dehumidifiers, air purifiers, air water generators, electric fireplaces, kitchen appliances and kitchenware, refrigeration units and spare parts for the above products; engaged in the import and export of self-produced products and raw and auxiliary materials, equipment and technology; engaged in software development and consulting. | Capital increase | 334,000,000 | 100% | Own fund | Sichuan Changhong Air-conditioner Co., Ltd. | 20 years | R&D, manufacturing and foreign sales of air conditioner | Contributed 150 million yuan in the reporting period | Not applicable | -7,867,110.38 | N | 2020-3-28 | Juchao Website: http://www.cninfo.com.cn (Notice No.: 2020-012, 2020-018) |
| Changhong Meiling Daily Electric Technology Co., Ltd. | Research and development, production and sales: household electric appliances, non-electric household appliances, gas water heaters, gas boilers, heat accumulating type series electric heaters, kitchen and toilet furniture, audio-visual equipment, radio and television equipment, computers, communications and other electronic equipment , interior decoration materials, general equipment, water purification equipment, smart bags, personal hygiene products; software and information technology services; business management consulting services; second and third types of medical equipment operating companies; | Acquisition | 83,000,000 | 99.0361% | Own fund | Hu Zhiheng | Long-term | R&D, manufacturing and sales of kitchen &small household appliances and water purifier | In reporting period, acquired the 0.18% equity of Daily Electric Technology held by individual shareholder Wu Changyuan with 280,049.17 | Not applicable | 40,773,010.71 | N | 2020-4-18 | Juchao Website: http://www.cninfo.com.cn (Notice No.: 2020-022) |
| goods and technology import and export. | Yuan | |||||||||||||
| Sichuan Changhong Group Finance Co., Ltd. | Provide financial and financing consulting services, credit verification and related consultation and agent services to member units; assist member units to realize the receipt and payment of transaction funds; approved insurance agency business; provide guarantee to member units; handle the entrusted loans between member units; conduct bill acceptance and discount for member units; handle internal transfer and settlement between the member units and corresponding settlement and clearing plan design; to absorb deposits of member units; conducting loans and financial leasing to member units; engaged in the interbank borrowing; handle entrusted investment between member units; securities investment other than stock investment; buyer‘s credit of products from member units; consumer credit of products from member units; spot settlement of foreign exchange; other business approved by the China Banking Regulatory Commission. | Capital increase | 500,000,000 | 14.96% | Own fund | Changhong Group, Sichuan Changhong, Chonghong Huayi | Long-term | Provide financial and financing consulting services, credit verification and related consultation and agent services to member units | Complete the capital increase of 500 million yuan in the reporting period (including 402.9983 million yuan reckoned into registered capital and 97.0017 million yuan included in capital reserves) | Not applicable | -- | N | 2019-09-10, 2019-09-27, 2020-07-28, 2020-08-08 | Juchao Website: http://www.cninfo.com.cn (Notice No.: 2019-060; 2019-061, 2019-063, 2019-067, 2020-051 and 2020-054) |
| Hefei Changhong Meiling Life Electric Co., Ltd. | Research and sales of the household electric appliances, non-electric household appliances, gas stove, gas water heaters, gas boilers, fast heating electric water heater (electric heating wall-hung furnace), heat accumulating type | Newly established | 50,000,000 | 70% | Own fund | Ningbo Hongling Enterp | Long-term | R&D and sales of the househol | No contribution in the reporting period | Not applicable | -- | N | 2020-12-12 | Juchao Website: http://www.cninfo.com.cn (Notice No.: 2020-097) |
| series electric heaters, direct heating series electric heater; kitchen and toilet furniture, audio-visual equipment, radio and television equipment, computers, communications and other electronic equipment , interior decoration materials, general equipment, water purification equipment, luggage, personal care and personal hygiene items; health care products, massage equipment and hardware department; software and information technology services; business management consulting services; sales of second and third types of medical equipment ; goods and technology import and export. (the import & export of goods and technologies prohibited by the state or involving administrative examination and approval is excluded) | rise Management Partnership (Limited Partnership) | d appliances, kitchen electrics and small appliances products | ||||||||||||
| Total | -- | -- | -- | -- | -- | -- | -- | -- | -- | - | 33,207,292.28 | -- | -- | -- |
Note 1: After the deliberation and approval of the 21st meeting of the ninth board of directors of the company, it was agreed that the company's subsidiary company Zhongke Meiling invested10 million yuan to invest in the establishment of a wholly-owned subsidiary Anhui Tuoxing Science and Technology Co., Ltd The Company holds 63.2683% equity of Zhongke Meiling, so theCompany indirectly holds 63.2683% equity of Anhui Tuoxing Science and Technology Co., Ltd.
(iii)The material non-equity investment in the reporting period
√Applicable □ Not applicable
In RMB
| Project Name | Investment Method | Invested with fixed assets (Y/N) | Industry involved in Investment Projects | Investment Amount in this Reporting Period | Accrued Actual Investment Amount up to the End of Reporting Period | Capital Source | Project Schedule | Anticipated Income | Accrued Realized Income up to the End of Reporting Period | Reasons for not Reaching the Planned Schedule and Anticipated Income | Disclosed Date (if any) | Disclosed Index (if any) |
| Production base project of annual output of 2 million washing machines(Phase II) | Self-built | Y | Manufacture of household appliances industry | 41,301,431.18 | 75,485,894.10 | Fund-raising | During the reporting period, "annual production base project of 2 million washing machines (phase II)" has been put into trial production in June, 2020. Up to now, the project has basically reached the intended serviceable state, and the acceptance of facilities and equipment has basically ended, and the remaining payment is still in the process of payment. | The production capacity of one million sets of automatic roller washing machine shall be formed after this project being put into operation | Approximately -36,700,000 yuan | During the reporting period, a combination of factors such as ramp up of capacity, impact of New Coronavirus pneumonia, sales of products, prices of bulk materials, depreciation and amortization led to losses in the project after trial production during the current reporting period. | 2019-7-9; 2019-7-26 | Juchao Website: http://www.cninfo.com.cn (Notice No.: 2019-040, 2019-041, 2019-042, 2019-043 and 2019-047) |
| Total | -- | -- | -- | 41,301,431.18 | 75,485,894.10 | -- | -- | - | - | -- | -- | -- |
Note 1: In order to further improve the efficiency of the company‘s use of raised funds, after careful study and demonstration, the 24
th
session of the 9
th board of directors, the 13
th
session of the
thboard of supervisors, and the resolution of the second extraordinary general meeting of shareholders in 2019 approved and agreed that the company shall change the unused raised funds of120 million yuan from the sub-project Freezer Intelligent Construction Project of the "Intelligent Manufacturing Construction Project" and put into the "Production base project of annual outputof 2 million washing machines(Phase II) ". The project (phase II) has been put into trial production in June 2020. Up to now, the project has basically reached the expected usable state, and theacceptance of facilities and equipment has been basically completed. Balance is still in the payment process.
(iv)Financial assets investment
1. Securities investment
□ Applicable √ Not applicable
The Company had no securities investment in the reporting period.
2.Derivative investment
√ Applicable □ Not applicable
In 10 thousand Yuan
| Operator | Related relationship | Whether related trade or not(Y/N) | Type | Initial investment | Start date | End date | Investment amount at period-begin | Amount purchased in the reporting period | Amount sales in the reporting period | Amount of reserve for devaluation of withdrawing (if applicable) | Investment amount at period-end | Ratio of investment amount at period-end in net assets of the Company at period-end | Actual gains/losses in period |
| Financial institution | N/A | N | Forward foreign exchange contract | 118,035.04 | 2019-6-28 | 2021-12-31 | 73,225.52 | 332,756.09 | 216,725.63 | - | 184,610.32 | 38.03% | 4,645.66 |
| Total | 118,035.04 | -- | -- | 73,225.52 | 332,756.09 | 216,725.63 | - | 184,610.32 | 38.03% | 4,645.66 | |||
| Capital resource | Own fund | ||||||||||||
| Lawsuit involved (if applicable) | Not applicable | ||||||||||||
| Disclosure date for approval from the Board for investment of derivatives (if applicable) | 2020-3-26 | ||||||||||||
| Disclosure date for approval from board of shareholders for investment of derivatives (if applicable) | 2020-5-29 | ||||||||||||
| Risk analysis and controlling measures for derivatives holdings in the Period (including but not limited to market risk, liquidity risk, credit risks, operation risk and law risks etc.) | Risk analysis: 1. Market risk: domestic and international economic situation changes may lead to exchange rate fluctuations, forward foreign exchange transactions are under certain market risk. Forward foreign exchange business is aiming to reducing impact on corporate profits by foreign exchange settlement and sale prices, exchange rate fluctuations. The Company will follow up the exchange fluctuation, on the basis of target rate determined from the business, relying on the research of the foreign currency exchange rates, combined with prediction of consignments, and burdening ability to price variations due to exchange rate fluctuations, then determine the plan of forward foreign exchange contracts, and make dynamic management to the business, to ensure reasonable profit level. 2. Liquidity risk: all foreign exchange transactions are based on a reasonable estimate of the future import and export business, to meet the requirements of the trade authenticity. In addition, forward foreign exchange transactions are processed with bank credit, will not affect liquidity of company funds. 3. Bank default risk: if cooperative banks collapse within the contract time, the Company will not be able to transact the original foreign exchange contracts with contract price, which leads the risk of income uncertainty. So the Company chose five state-owned banks, the Chinese-funded banks in shareholding enterprise as | ||||||||||||
| Everbright Bank, Industrial Bank and the foreign-funded banks as UOB, OCBC, BEA etc. to conduct the trading of foreign exchange capital. These banks share a solid strength and management whose failure and the risk of loss may bring to the Company is very low. 4. Operational risk: improper operation of the person in charge of forward foreign exchange transactions may cause related risk also. The Company has formulated related management system which defines the operation process and responsibility to prevent and control risks. 5. The legal risks: unclear terms based in contract signed with banks for related transactions may lead legal risks when forward foreign exchange transactions are processing. The Company will strengthen legal review, and choose good bank to carry out this kind of business as to risk control. | |
| Invested derivative products have changes in market price or fair value in the Period, as for analysis of the fair value of derivatives, disclosed specific applied methods and correlation assumption and parameter setting | The Company determines fair value in accordance with the Chapter VII ―Determination of Fair Value‖ carried in the Accounting Standards for Business Enterprises No.22 - Recognition and Measurement of Financial Instruments. Fair-value is basically obtained according to prices offered by bank and other pricing services. While fair-value of derivatives is mainly obtained according to the balance between prices given by outstanding contracts and forward prices given by contracts signed during the reporting period with bank. The differences are identified as trading financial assets and liabilities. During the reporting period, forward foreign exchange contracts and losses of the Company is 46.4566 million Yuan. |
| Specific principle of the accounting policy and calculation for derivatives in the Period compared with last period in aspect of major changes | Not applicable |
| Special opinion on derivative investment and risk control by independent directors | Upon inspection, the independent directors of the Company believes that: during the reporting period, the Company carried out its foreign exchange forward deals in strict compliance with the Standardized Operation Guidelines for Listed Company issued by Shenzhen Stock Exchange, the Articles of Association, Authorization Management of the Company, Management System in relating to Foreign Exchange Forward Deals of Hefei Meiling Co., Ltd., and these deals were conducted within the authorization scope under general meeting and board meeting. The Company conducts no foreign exchange transactions on the purpose of getting profit only, all of the forward foreign exchange transactions are operates based on normal operating and production, which is relying on specific business operations with purpose of avoiding the preventing the risks in exchange rate. The forward foreign exchange transactions of the Company are beneficial to prevent the exchange risks exposed by import and export business and thus met its requirement for operation development. There was no speculative operation, no break of relevant rules and regulations and relevant business was conducted under corresponding decision-making procedures. Interests of the Company and entire shareholders, especially minority shareholders, were not prejudiced. |
(v) Application of raised proceeds
√ Applicable □ Not applicable
1. Overall application of raised proceeds
√ Applicable □ Not applicable
In 10 thousand Yuan
| Raising year | Way | Total raised capitals | Total raised capital used in Period | Total accumulative raised capitals used | Total raised capital has purpose of uses changed in Period | Cumulative raised capitals has purpose of uses changed in total | Ratio of cumulative raised capitals has purpose of uses changed | Total accumulative raised capitals unused | Usage of the retained raised capitals and what is expected to invested with those capitals | Raised capitals idle for more than two years |
| 2016 | Non-public offering of A-shares | 154,073.272276 | 9,442.380857 | 107,553.992006 | 0 | 47,246.035127 | 30.66% | 15,652.444656 | The raised funds that the Company has not run out will continue to complete the corresponding investment as planned. Meanwhile, the unused raised funds shall all be deposited in the designated special account for raised funds. Without affecting the implementation progress of the raised project, the Company will use the idle raised funds to purchase financial products, which will explain on part of the item ―note 3:usage and directions of the raised funds that have not yet been used‖ under ―2.Situation of committed project of raised proceed‖ in this section. | -- |
| Total | -- | 154,073.272276 | 9,442.380857 | 107,553.992006 | 0 | 47,246.035127 | 30.66% | 15,652.444656 | -- | |
| Explanation on General usage of raised capital | ||||||||||
| Being deliberated and approved by 1st extraordinary shareholders meeting of 2016 and 17th session of 8th BOD, and verified by the Reply on Private Placement of Hefei Meiling Co., Ltd. (CSRC XK [2016] | ||||||||||
2. Situation of committed project of raised proceed
√ Applicable □ Not applicable
In 10 thousand Yuan
No.1396) issued from CSRC, the Company successfully offering 280,858,676 shares (A-stock) to 7 qualified investors, including Sichuan Changhong Electric Co., Ltd. (hereinafter referred as to SichuanChanghong), with price of 5.59 Yuan/Share and face value of 1.00 Yuan. According to the Verification Report XYZH/2016CDA40272 issued by Shine Wing Certified Public Accountants (LLP), total raisedfund amounting to 1,569,999,998.84 Yuan, less vary issuance changes (tax included) 29,267,276.08 Yuan, raised fund amounts to 1,540,732,722.76 Yuan.Ended as 31 December 2020, actually fund of raised used accumulative amounted as 1,075,539,920.06 Yuan in total, balance of the account for fund raised counted as 156,524,446.56 Yuan (including interestincome accumulative amounted as 3,770,265.96 Yuan and income from financial product at expiration 39,525,852.13 Yuan)The Company accumulative used the fund raised amounted as 1,075,539,920.06 Yuan, the use of purpose including: intelligent construction has 346,484,617.85 Yuan in used; R&D ability for intelligence andnew products for intelligent household appliance has 413,173,638.44 Yuan in used; smart life project totally used 45,001,600.00 Yuan; used in current fund supplementary counted as 270,880,063.77 Yuan(including saving interest of 147,341.01 Yuan)Committed investmentprojects and over-raisedfund investment
| Committed investment projects and over-raised fund investment | Change the project (Y/N) (including partially changed) | Total raised-fund commitment | Investment after adjustment (1) | Invested in the period | Cumulative investment amount till end of Period-end (2) | Investment progress till end of period-end (3)＝(2)/(1) | Date of reach a predetermined state of use | Benefit achieved in the Period | Achieved expected benefits (Y/N) | Major changes of project feasibility (Y/N) |
| Committed investment project | ||||||||||
| Construction of intelligent manufacturing project | Partial change | 39,100.00 | 39,100.00 | 6,356.017785 | 34,648.461785 | 88.61% | Intelligent manufacturing (Hefei) project: end of December 2020; | 3,233 | N | N |
| Annual output of 2 million washing machine production base project (phase II): trial production in June 2020 | -3,670 | N | ||||||||
| Construction of intelligent R&D capability and new products development of the intelligent appliance technology | Partial change, the procedures for final approval completed | 55,900.00 | 48,188.658476 | 3,086.363072 | 41,317.363844 | 85.74% | The project reach the intended usable state at end of the 2019 | -- | Not applicable | N |
| Intelligent life project | Change completed | 32,000.00 | 4,500.16 | 0 | 4,500.16 | 100.00% | -- | -- | Not applicable | Y |
| Supplementary the floating capital | No changes | 27,073.272276 | 27,073.272276 | 0 | 27,088.006377 | 100.05% | -- | -- | Not applicable | N |
| Subtotal of committed investment project | -- | 154,073.272276 | 118,862.090752 | 9,442.380857 | 107,553.992006 | -- | -- | -- | -- | -- |
| Investment of the over-raised fund | ||||||||||
| No over-raised fund in the Period | ||||||||||
| Payment of bank loans (if applicable) | -- | -- | -- | -- | -- | |||||
| Supplementary the floating capital (if applicable) | -- | -- | -- | -- | -- | |||||
| Subtotal of over-raised fund investment | -- | -- | -- | -- | -- | -- | ||||
| Total | -- | 154,073.272276 | 118,862.090752 | 9,442.380857 | 107,553.992006 | -- | -- | -- | -- | -- |
| Conditions and reasons of failure to meet schedule or predicted income (by specific projects) | Found in Note 1 | |||||||||
| Description of major changes in project feasibility | Not applicable | |||||||||
| Amount, use of purpose and usage progress of the excessive raised fund | Not applicable | |||||||||
| Change of the implementation location of project with investment of raised fund | Not applicable | |||||||||
| Adjustment of the implementation ways of project with investment of raised fund | Not applicable |
| Early investment and replacement with the raised fund | Found in Note 2 |
| Temporary replacement of the working capital with idle raised funds | Not applicable |
| Amount and reasons of cash surplus in raised funds during implementing the project | Not applicable |
| Use purpose and destination of the raised funds un-used | Found in Note 3 |
| Problems or other circumstances in the use of raised funds and its disclosure | Relevant information with raised funds concerned are disclosed in a timely, true, accurate and complete manner, there is no violation in the deposit, use, management and disclosure of the raised funds. |
Note 1:
1.“Construction of intelligent manufacturing project ”:
(1) the original planning construction period of ―construction of intelligent manufacturing (Hefei) project‖ is 3-year, and withpurpose of regulating the use of raised funds, the resolution of the 20
th session of the 9
th BOD and the 11
th
session of the 9
th
Supervisory Committee of the Company passed and agreed to postpone the date that the project achieves the scheduled serviceablecondition to the end of December 2021. Up to now, the "construction of intelligent manufacturing (Hefei) project" has basicallyreached its intended use status. During the reporting period, due to the impact of the COVID-19 epidemic, and the combined impactof the decline in the company's sales scale and the increase in prices of bulk materials, the project's revenue during the reportingperiod did not meet expectations.
(2) During the reporting period, "annual production base project of 2 million washing machines (phase II)" has been put into trialproduction in June, 2020. Up to now, the project has basically reached the intended serviceable state, and the acceptance of facilitiesand equipment has basically ended, and the remaining payment is still in the process of payment. During the reporting period, acombination of factors such as ramp up of capacity, impact of New Coronavirus pneumonia, sales of products, prices of bulkmaterials, depreciation and amortization led to losses in the project after trial production during the current reporting period..
2.“Construction of intelligent R&D capability and new products development of the intelligent appliance technology ”In order to accelerate the implementation of the company‘s ―intelligent research and development projects‖, shorten the developmentcycle of intelligent products, improve the company's research and development capabilities, and reduce the repeated investments inresources, the resolutions of the 31
st meeting of the ninth board of directors, the 16
thmeeting of the ninth board of supervisors, andthe 4
thextraordinary shareholders‘ meeting in 2019 passed and agreed the company to change the use and investment of some of thefunds raised in the ―intelligent research and development project‖, and use them to purchase intelligent infrastructure platformconstruction and software R & D platforms and other R & D assets from Sichuan Changhong Electric Co., Ltd. and its subsidiaries.The pricing of the related transactions was subject to the appraised value of the underlying asset as of September 30, 2019, and thetransaction price was determined to be 46,617,300 yuan. Up to now, relevant assets with the transaction involved has not beencompleted, and the transaction capital has not been paid.Furthermore, according to the resolutions of the 33
rd meeting of the ninth board of directors of the company, and the 1
stextraordinaryshareholders‘ meeting in 2020, passed and agreed the company to close the ―intelligent research and development project‖ and usethe project‘s surplus raised funds of 125,084,220.44 yuan (including interest income of 47,970,805.20 yuan from wealth managementand deposits) as of November 30, 2019 and the interest settled in the future to permanently supplement the company‘s workingcapital, and the specific amount was subject to the actual balance of the special account after deducting the balance of reservedcontract and the guarantee deposit on the day the funds were transferred out. At the same time, a total of 114,368,326.60 yuan,including the balance of the contract to be paid and the guarantee deposit would be reserved in the fund raising account and paid inaccordance with the contract agreement.On January 15, 2020, the company withdrew the remaining raised funds, wealth management and interest income totaling126,766,362.64 yuan after deducting the balance of the contract to be paid and the guarantee deposit from the ―intelligent researchand development project‖ account for permanent supplements of the company‘s working capital. After the withdrawal, the remainingfunds of the special account of the raised funds will continue to be used to pay the contract balance and guarantee deposit. During thereport period, totally 30,863,630.72 yuan have been paid for the contract balance and guarantee deposit. As of the reporting period,remaining raised fund amounted to 69,906,907.07 yuan.
3.“Intelligent life project”
The resolutions of the 24
th
meeting of the ninth board of directors of the company, the 13
th
meeting of the ninth board of supervisors,and the 2
ndextraordinary shareholders‘ meeting in 2019 passed and approved the company to terminate the implementation of the―Intelligent life project‖ and use the remaining raised funds and financial management interest of the project to permanentlysupplement the working capital. The company has withdrawn the remaining funds raised and interest income from this account, atotal of 305,843,051.27 yuan, to permanently supplement the company‘s working capital. After the withdrawal, the remaining fundsof the special account for the raised funds were 0 yuan, and the account was cancelled. Meanwhile, the implement subject -Changmei Technology Co., Ltd. (hereinafter referred to as the ―Changmei Technology‖) has been liquidated and cancelled.
4. “Supplementary the floating capital ”
The investment progress exceeded 100%, and mainly due to the use of raised funds containing the deposit interest of raised funds.Note 2: Early investment and replacement with the raised fundEnded as 31 October 2016, the Company contributed self-raised fund 63,984,738.91 yuan for the raised-fund investment project, themoney has replaced as 63,984,738.91 yuan. Shine Wing CPA (LLP) made a special audit for pre-investment and carried out anAssurance Report on Invested Self-raised fund to the Raised-fund Investment Before Hand (XYZH/2016CD40285) (hereinafterreferred as to Assurance Report). Replacement are as:
In 10 thousand Yuan
| Raised-fund investment project | Total investment | Commitment capital for raised-fund project | Investment of self-raised fund invested till end of 31 October 2016 | Amount replaced |
| Construction of intelligent manufacturing project | 39,870.65 | 39,100.00 | 2,545.41 | 2,545.41 |
| Construction of intelligent R&D capability and new products development of the intelligent appliance technology | 55,900.00 | 55,900.00 | 2,053.06 | 2,053.06 |
| Intelligent life project | 32,076.00 | 32,000.00 | 1,800.00 | 1,800.00 |
| Total | 127,846.65 | 127,000.00 | 6,398.47 | 6,398.47 |
The replacement has been deliberated and approved by the 27
th
session of 8
th BOD and 14
th session of 8
thsupervisory committee,independent directors are proposed an agreeable independent opinion, and sponsor institution carried out a verification opinionwithout objection.Note 3: Use purpose and destination of the raised funds un-usedThe raised-fund have not been used will continues to completed the corresponding investment according to the projectimplementation plan. Meanwhile, according to the raised-fund investment plan, and been deliberated and approved by the Board, theBoard of supervisors and shareholder general meeting at beginning of 2020, agreeable independent opinion from independentdirectors and with the verification opinion without objection issued by sponsor institution, it‘s agreed the Company to use the idleraised fund of no more than 199 million Yuan (the amount can be rolled over) to invest in principal-protected financial products.In March 2021, as deliberated and approved by the fifth meeting of the tenth board of directors and the fourth meeting of the tenthboard of supervisors of the company, independent directors issued agreed independent opinions, and the sponsor institution issuednon-objectionable verification opinions, agreeing that the company can use idle raised funds of no more than 120 million yuan (thequota can be used on a rolling basis) to invest in capital-guaranteed wealth management products. This matter still needs to besubmitted to the company‘s general meeting of shareholders for review and approval.Up to now, the unused raised funds of the Company are all deposited in the designated special account for raised funds. Purpose ofthe fund-raising projects has not changed.
3.Change of the raised funds
√ Applicable □ Not applicable
In 10 thousand Yuan
| Project after changed | Corresponding original commitment item | Total raised funds plans to invest after change (1) | Amount actually invested in the period | Cumulative investment amount actually till end of Period-end (2) | Investment progress till end of period-end (3)＝(2)/(1) | Date of reach a predetermined state of use | Benefit achieved in the Period | Achieved expected benefits (Y/N) | Major changes of project feasibility after changed (Y/N) | |
| Production line for the annual capacity of 2 million washing machines(Phase II) | freezer intelligent construction project | 12,000 | 4,130.143118 | 7,548.58941 | 62.90% | Jane 2020 | -3,670 | N | N | |
| Supplementary the floating capital permanently | Intelligent life project | 30,584.305127 | 0 | 30,584.305127 | 100% | -- | -- | -- | N | |
| Purchase part of the assets of intelligent R&D project | Self-built part of the assets of intelligent R&D project | 4,661.73 | 0 | 0 | 0% | -- | -- | Y | N | |
| Supplemented the working capital permanently with the surplus raised funds of intelligent R&D project | Constructed an intelligent R&D project | 12,676.636264 | 12,676.636264 | 12,676.636264 | 100% | Withdraw on 15 Jan. 2020 | -- | Y | N | |
| Total | -- | 59,922.671391 | 16,806.779382 | 50,809.530801 | -- | -- | -- | -- | -- | |
| Reasons for changes, decision-making procedures and information disclosure (explain by specific project) | 1. The company optimized the layout of the freezer‘s production capacity through intelligent upgrading and rebuilding, improved the freezer‘s production capacity and efficiency, and the freezer‘s production capacity has been able to meet the market demand. The project had not been implemented, and the feasibility of the project had undergone major changes, if the company continued to implement the ―freezer intelligent construction project‖, it would not be able to achieve the expected economic benefits and would face market and investment risks. Approved by the resolutions of the 24th meeting of the ninth board of directors, the 13th meeting of the ninth board of supervisors, and the 2nd extraordinary shareholders meeting in 2019 agreed the company to change the unused raised funds of 120 million yuan for the ―intelligent construction of freezer‖ invest in the ―production base project for annual production of 2 million sets of washing machines (Phase II)‖. Found more on relevant announcement (Notice No.: 2019-040, 2019-041, 2019-042 and 2019-047) released on 9 July 2019 and on 26 July respectively. During the reporting period, "annual production base project of 2 million washing machines (phase II)" has been put into trial production in June, 2020. Up to now, the project has basically reached the intended serviceable state, and the acceptance of facilities and equipment has basically ended, and the remaining payment is still in the process of payment. During the reporting period, a combination of factors such as ramp up of capacity, impact of New Coronavirus pneumonia, sales of products, prices of bulk materials, depreciation and amortization led to losses in the project after trial production during the current reporting period. | |||||||||
| 2. As the main body of the company‘s ―Intelligent life project‖, Changmei Technology used its own refrigeration equipment manufacturing advantages to look for new paths for enterprise development. However, due to the heavy asset burden, low turnover rate, high operation and maintenance and property costs, it sustained losses. After careful research, the company considered that the original business model of the smart life project was no longer competitive, if the company continued to implement the investment project with the raised funds, it would be difficult to achieve the expected investment income and may even generate greater losses. The resolutions of the 24th meeting of the ninth board of directors of the company, the 13th meeting of the ninth board of supervisors, and the 2nd extraordinary shareholders‘ meeting in 2019 passed and approved the company to terminate the implementation of the ―Intelligent life project‖ and use the remaining raised funds and financial management interest of the project to permanently supplement the working capital. Found more on relevant announcement (Notice No.: 2019-040, 2019-041, 2019-043 and 2019-047) released on 9 July 2019 and on 26 July respectively. The company has withdrawn the remaining funds raised and interest income from this account, a total of 305,843,051.27 yuan, to permanently supplement the company‘s working capital. After the withdrawal, the remaining funds of the special account for the raised funds were 0 yuan, and the account was cancelled. Meanwhile, the implement subject - Changmei Technology Co., Ltd. (hereinafter referred to as the ―Changmei Technology‖) has been liquidated and cancelled. 3. In order to accelerate the implementation of the company‘s ―intelligent research and development projects‖, ensure the independence of intelligent research and development technology, shorten the development cycle of intelligent products, improve the company's research and development capabilities, and reduce the repeated investments in resources, the resolutions of the 31st meeting of the ninth board of directors, the 16th meeting of the ninth board of supervisors, and the 4th extraordinary shareholders‘ meeting in 2019 passed and agreed the company to change the use and investment of some of the funds raised in the intelligent R&D ability construction and Development on new products of Household Technology (hereinafter, the ―intelligent research and development project‖), and use them to purchase intelligent infrastructure platform construction and software R & D platforms and other R & D assets from Sichuan Changhong Electric Co., Ltd. and its subsidiaries. The pricing of the related transactions was subject to the appraised value of the underlying asset as of September 30, 2019, and the transaction price was determined to be 46,617,300 yuan. Found more on relevant announcement (Notice No.: 2019-077, 2019-078, 2019-079 and 2019-087) released on 30 October 2019 and on 28 December respectively. Up to now, relevant assets with the transaction involved have not been transferred, the transaction funds have not been paid. 4. As the construction of the ―intelligent research and development project‖ was completed and reached its intended use, the resolutions of the 33rd meeting of the ninth board of directors of the company, the 17th meeting of the ninth board of supervisors, and the 1st extraordinary shareholders‘ meeting in 2020 passed and agreed the company to close the ―intelligent research and development project‖ and use the project‘s surplus raised funds of 125,084,220.44 yuan (including interest income of 47,970,805.20 yuan from wealth management and deposits) as of November 30, 2019 and the interest settled in the future to permanently supplement the company‘s working capital, and the specific amount was subject to the actual balance of the special account after deducting the balance of reserved contract and the guarantee deposit on the day the funds were transferred out. At the same time, a total of 114,368,326.60 yuan, including the balance of the contract to be paid and the guarantee deposit would be reserved in the fund raising account and paid in accordance with the contract agreement. Found more on relevant announcement (Notice No.: 2019-088, 2019-089, 2019-091 and 2020-002) released on 26 December 2019 and on 11 Jan. 2020 respectively. On January 15, 2020, the company withdrew the remaining raised funds, wealth management and interest income totaling 126,766,362.64 yuan after deducting the balance of the contract to be paid and the guarantee deposit from the ―intelligent research and development project‖ account for permanent supplements of the company‘s working capital. After the withdrawal, the remaining funds of the special account of the raised funds amounted to 99,576,577.04 yuan, which would continue to be used to pay the contract balance and guarantee deposit. | |
| Conditions and reasons of failure to meet | "annual production base project of 2 million washing machines (phase II)" has been put into trial production in June, 2020. Up to now, the project has basically reached the intended serviceable state, and the acceptance of facilities and equipment has basically |
| schedule or predicted income (by specific projects) | ended, and the remaining payment is still in the process of payment. During the reporting period, a combination of factors such as ramp up of capacity, impact of New Coronavirus pneumonia, sales of products, prices of bulk materials, depreciation and amortization led to losses in the project after trial production during the current reporting period. |
| Presentation on the major changes in project feasibility after changed | N/A |
VI. Sales of major assets and equity(i) Sales of major assets
□ Applicable √ Not applicable
No major assets are sold in the period(ii) Sales of major equity
□ Applicable √ Not applicable
VII. Analysis of main holding company and stock-jointly companies
√ Applicable □ Not applicable
(i) Particular about main subsidiaries and stock-jointly companies net profit over 10%
In RMB
| Company name | Type | Main business | Register capital | Total assets | Net assets | Operating revenue | Operating profit | Net profit |
| Zhongke Meiling Cryogenic Technology Co., Ltd. | Subsidiary | Research and development, manufacturing and sales of ultra-low temperature freezer | 72,548,200 | 519,797,336.61 | 187,342,617.80 | 372,599,049.12 | 52,505,467.23 | 46,042,179.72 |
| Jiangxi Meiling Electric Appliance Co., Ltd. | Subsidiary | Manufacturing of refrigeration and freezer | 50,000,000 | 272,788,771.29 | 118,905,342.75 | 799,719,795.05 | 15,029,794.60 | 15,120,453.27 |
| Mianyang Meiling Refrigeration Co., Ltd. | Subsidiary | Manufacturing of refrigeration and freezer | 100,000,000 | 133,244,137.78 | 121,488,167.08 | 467,203,173.04 | 2,011,242.27 | 2,044,726.95 |
| Sichuan Changhong Air-conditioner Co., Ltd. | Subsidiary | R&D, manufacturing and domestic sales of air-conditioning | 850,000,000 | 2,667,138,918.78 | 1,089,203,073.93 | 2,865,034,256.60 | -206,091,852.70 | -199,691,126.79 |
| Zhongshan Changhong Electric Co., Ltd. | Subsidiary | R&D, manufacturing and foreign sales of air-conditioning | 334,000,000 | 1,329,478,310.66 | 120,879,009.69 | 2,290,756,655.16 | -7,709,902.74 | -15,362,802.30 |
| Hefei Meiling Group Holdings Limited | Subsidiary | Sales of white goods | 80,000,000 | 1,059,154,744.01 | -138,613,658.55 | 4,839,921,604.80 | 27,836,273.95 | 29,189,020.65 |
| Changhong Meiling Daily Electric Technology Co., Ltd. | Subsidiary | R&D, manufacturing and sales of kitchen and toilet products, small home appliances and water purifier | 83,000,000 | 623,405,807.11 | 134,502,720.48 | 1,083,259,433.15 | 49,608,605.20 | 41,169,846.86 |
(ii) Subsidiary obtained and disposed in the period
√ Applicable □ Not applicable
| Company name | The method of obtaining and disposing subsidiaries during the report period | The influence to the whole production and performance |
| Hefei Changhong Meiling Life Electric Co., Ltd. | Investment and Establishment | A controlling subsidiary of the Company. And jointly established by the Company and Ningbo Hongling Enterprise Management Partnership (Limited Partnership) with registered capital of 50 million yuan. Establishment of the enterprise is to realize the transformation and upgrading of the Company‘s daily electric industry and promote the rapid and sound development of the daily electric industry |
| CH-Meiling International (Philippines) Inc. | Investment and Establishment | Wholly-owned subsidiary of the Company with registered capital of one million US dollars. The enterprise was established to further enhance the brand awareness of the Company‘s products in Southeast Asian countries and expand the scale of overseas sales of the Company‘s home appliances. |
| Guangxi Huidian Household Electrical Appliances Co., Ltd. | Clearing off | Minor effect on the overall production and operation and performance of the company |
| Changmei Technology Co., Ltd. | Clearing off | Minor effect on the overall production and operation and performance of the company |
| Chengdu Meiling Electrical Marketing Co., Ltd | Merger by absorption | Minor effect on the overall production and operation and performance of the company |
| Fuzhou Meiling Electrical Marketing Co., Ltd | Merger by absorption | Minor effect on the overall production and operation and performance of the company |
| Nanjing Meiling Electrical Marketing Co., Ltd | Merger by absorption | Minor effect on the overall production and operation and performance of the company |
| Hangzhou Meiling Electrical Marketing Co., Ltd | Merger by absorption | Minor effect on the overall production and operation and performance of the company |
| Shanghai Meiling Electrical Marketing Co., Ltd | Merger by absorption | Minor effect on the overall production and operation and performance of the company |
| Beijing Meiling Electrical Marketing Co., Ltd | Merger by absorption | Minor effect on the overall production and operation and performance of the company |
(iii) Description of the holding company and stock-jointly companiesThe Company has no major holding and stock-jointly enterprise should be disclosed in the periodVIII. Structured entity controlled by the Company
□ Applicable √ Not applicable
IX. Future Development Prospects
(i) Macro environment analysisLooking forward to 2021, the Chinese economy in the post-epidemic era will usher in a bottoming out andrebound, but the Chinese economy will face many risks and challenges at home and abroad in the future. From theperspective of influencing factors, weakening global economic growth, repeated epidemics at home and abroad,and geopolitical risks, Sino-US and Sino-Australian trade frictions, exchange rate fluctuations, and the rise ofunilateral isolationism are still important factors affecting China‘s economic development. From the perspectiveof economic risks, real estate price crisis, local government debt, exchange rate and currency crisis, potential riskssuch as international financial transmission and withdrawal of foreign capital are increasingly becoming potentialfactors that hinder the stable development of China's economy in the future.(ii)Industry environment analysis
(1) Refrigerator (freezer) industry
The demand for household storage refrigeration driven by the epidemic has increased significantly, and the surgein overseas demand has led to a significant increase in the dependence of global refrigerator production capacityon China. Driven by demand, the prices of raw materials once remained high and continued to rise, laying asufficient foundation for the price increase in the refrigerator market. At the same time, affected by the epidemic,the share of online sales rose sharply in 2020, leading to a slight decline in the average price of the industry. In2021, the refrigerator market is expected to increase the average price of all channels. All View Cloud (AVC)forecast data shows that in 2021, the refrigerator market will have a retail volume of 33.21 million units, ayear-on-year increase of 2.5%; retail sales will be 91.9 billion yuan, a year-on-year increase of 3.1%.
(2) Air-conditioning industry
In 2021, with the recovering of real estate market, new demand for air conditioners is expected to improve.According to statistic data from All View Cloud, in the domestic air-conditioning market with a high inventory ofover 450 million units, renewal demand has become a strong guarantee for future demand, combined with thehistorical annual rules of the air-conditioning market, air conditioners shall always usher in a sales bumper yearfor every 3-4 years. AVC predicts that the retail volume of China's air-conditioning market will be 59.24 millionunits in 2021, a year-on-year increase of 15.7%, and retail sales of 195.3 billion yuan, a year-on-year increase of
26.5%.
(3) Washing machine industry
In recent years, the washing machine market has tended to a period of stock consolidation, the market demand ismainly for upgrading, and insufficient demand has become the norm in the industry. Especially under theinfluence of the COVID-19 epidemic, the overall growth rate of the industry has declined. Given that the domesticepidemic situation is becoming more stable, the possibility of a large-scale outbreak is very small, and at the sametime, due to the stable market demand for washing machine replacement and the steady pace of product iteration,it is expected that the washing machine market in 2021 will show continued stability in the market, continuouschannel transfer, and continuous structural upgrade.
(4) Kitchen & bathroom, small appliance
In terms of the kitchen appliance industry, under the influence of the COVID-19 epidemic, due to the restrictionson logistics, channels, installation and other factors, it has fallen into a negative growth in 2020. However, theepidemic has also given millions of families time and space to cook, awakening people's love and enthusiasm forcooking. At the same time, the health needs spawned by the epidemic have also created powerful new linksbetween companies and consumers.In terms of the small home appliance industry, from the channel level, the arrival of the epidemic has led to therapid development of online channels and the maturity of live streaming sales, and online channels have becomethe main sales channels for small home appliances. From the perspective of category, consumption continues toescalate and the population is continuously subdivided, resulting in a diversified demand. Many emerging smallhome appliances categories emerge after the epidemic, injecting new opportunities into the small home appliancemarket.
(5) Biomedical
At present, domestic brands in our country's medical device industry have a relatively low market share, and thereis still a large room for import substitution. In recent years, in order to promote the development of domesticmedical equipment, the supervisory authorities have introduced a number of measures to encourage the purchaseof domestic equipment, which is expected to promote the import substitution process of domestic medicalequipment. The COVID-19 epidemic has placed the construction of our country's public health system in aprominent position, the country and many provinces and cities have introduced a series of policies and measuresto support the construction of the public health system. Under the dual factors of continuous policy promotion andtechnological breakthroughs of domestic device companies, the domestic medical devices are gaining marketaccess at a faster rate. At the same time, as end-use customer needs change, we believe that manufacturers ofdigital, automated products and comprehensive service capabilities will have an advantage in future competition.(iii) Development strategy
1. Vision
Be a leading brand in China, World Class and respectable household appliance enterprise.
2.Strategy direction
Based on the direction of digitalization and intelligence, we will firmly takes the road of market-driven, productleadership, efficiency breakthrough and team activation, make efforts to promote the business profitability andhealthy growth, and realize the ―Meiling Dream‖ of becoming a China leading, world-class and respectable homeappliance enterprises(iv) Operation plan for year of 2021
1.Business objective
In 2021, the company will strive to achieve growth rate higher than the average of the industry based on benign
development and strive to turn the net profit attributable to the parent company from losses into gains.
2.Business policy
The company‘s operation policy for 2021 is ―market-driven, product leadership, efficiency breakthrough and teamactivation‖. Focus on customers in the market, provide consumers with products with unique value, introduce athree-tier incentive mechanism of "KPI+GPI+value sharing" in operation, and promote digital transformation andintelligent upgrading.Market-driven: Promote healthy development with a market driven process.In the domestic markets, focus on raising average prices, adjusting structure, and controlling profits and losses, onthe one hand, promote high-quality goods, clarify various product business cards, focus on business cardssaturated promotion, and create product labels. On the other hand, we will unswervingly promote thetransformation of marketing organization, continue to attack online channels, strengthen e-commerce teambuilding, carry out digital operations, try cross-industry developing, expand distribution, develop online channels,and increase the share of online refrigerators; while transform and upgrade offline channels, strengthen terminalcapabilities, adjust structure, and increase gross profit margin.In the overseas markets, the guiding ideology is to carry out e-commerce transformation and embrace new media.Make key breakthroughs in the refrigerator and washing machine business through industry benchmarking, focuson strategic markets, key markets and potential markets, and capture market increments; accelerate brand business;seek profit increments through cost reduction and efficiency improvement, and logistics efficiency raising. Forair-conditioning business, focus on core major customers and adjust the customer structure.Product leadership:
Adhere to "productism" in a long term, continue to attach importance to product development, focus on users, andprovide consumers with unique value-added products.Product competitiveness enhancement: make breakthroughs in core technology and promotie the taste, quality andcategory of products to empower products and brands, create differentiated and high-profit products with Meilingcharacteristics; strengthen cost and leading efficiency through "five-izations and three easy" and competitiveproduct benchmarking, create cost-effective hot sale products. Refrigerators focus on "fresh, thin and clean", airconditioners focus on "extremely quiet, extremely economical, and extremely intelligent", washing machinesfocus on "thin, large, simple", kitchens and small appliances focus on "water ecological household appliances andinfluential brand in operational services, while biology and medical conducts product layout around " lifesciences ,cold chain and health market opportunities".R&D capability enhancement: continue to build hard-core technology in technological creativity. With regard tothe improvement of basic R&D capabilities, drive market-oriented product development, define business entities,and consolidate product business operations. Continue to increase R&D investment, build basic R&D capabilitiesin talents, professional laboratories, IT tools, R&D knowledge, etc., optimize organization, process, and systems,
and continuously improve R&D per capita output, R&D cycle, and the efficiency in five-izations and three easy.Efficiency breakthrough:
Fully promote the benchmarking, catch up with the benchmark, narrow the gap, and strive to surpass.
(1) In terms of improving the efficiency of research and development, increase the success rate of new products onthe market through accurate user research, platform and cabinet focus, the effective operation of the productmanagement system. Optimize the review system of the technical expert committee and improve the efficiencytools to shorten the project development cycle.
(2) In terms of improving manufacturing efficiency, reduce manufacturing costs by improving efficiency in bothtechnology and management. In terms of technology, it is necessary to do a good job in key projects such as fewerstaff, lean production, foaming process innovation, and automation. In management, do a good job in importantmatters such as staff stability, team activation, reduce the variable manufacturing overhead expenses per product.
(3) In terms of quality improvement, start from meeting the high-quality needs of users, always focus oncontrolling quality risks, reducing quality costs, and improving quality reputation, and reduce the return ratethrough strategies such as clearing out the responsibility list, high target traction, and focusing on key issues, etc. .
(4) In terms of improving capital efficiency, on the one hand, shorten the logistics and delivery time cycle, strictlycontrol the turnover of commercial inventory, and accelerate the turnover of factory dumps. On the other hand,strengthen the special clean-up of credit overdue and control of the credit line, which greatly improve the capitalefficiency.Team activation:
In order to comprehensively and effectively evaluate the performance growth of employees and encourageemployees to improve their professional competence, the company has introduced GPI (employee performancegrowth indicator) evaluation on the basis of the existing KPI system, and built a three-tier incentive system of"KPI+GPI+value sharing" to motivate employees‘ vitality, which on the one hand enhances the company's overallcompetitiveness, on the other hand, pursues excellence to realize the enhancement of its own value, therebypromotes the company's overall performance and sustainable development.
3. Market strategy
(1) Refrigerator (freezer)
In the domestic markets, we will unswervingly carry out the transformation of the marketing organization, make"high-quality goods" + "hot sale products", increase scale, improve margins, transform and upgrade offlinechannels, and improve retail channel capabilities; strengthen online channels and face and participate in thecompetition.In the overseas markets, quickly expand the scale on the premise of reasonable profits, continue to do a good jobin ―focusing on products, focusing on markets, focusing on customers‖, and improve product competitiveness
through continuous promotion of air cooling, inverter, and large volume products; constantly increase marketshare by focusing on strategic markets, key markets, and potential markets, and constantly increase market share;focus on strategic customers and key customers, develop potential customers, and focus and increase customerconcentration. At the same time, accelerate the development of overseas independent brand business.
(2) Air-conditioning
In the domestic markets, we pursue a benign priority, seize the opportunity to upgrade the functions of "fresh air,self-cleaning, and comfortable air", and create a "high-quality goods" + "hot sale products" model. Develope-commerce, focus on the base market, fully benchmark against each other, and insist on profitable scale growth.In the overseas markets, continue to improve operational efficiency, improve operational quality, and ensure bothscale and profit growth; make breakthroughs in product strength, fill gaps in order to find increments, adjuststructure to increase gains and losses, and upgrade platform for development; make breakthroughs in channelconstruction, promote self-owned brands and exert strength in e-commerce.
(3) Washing machine
Carry out channel marketing work by centering on "strengthening O2O, consolidating foundation, and laying outchain", and continue to expand the export business; according to the strategic choice of "excellent quality, productdifferentiation", take "quality first" and "product innovation" as the quality control strategy and productdevelopment strategy, and create Meiling washing machine "ultra-thin body", "super-large drum diameter" and"one-key smart washing" to build the core competitiveness of products.
(4) Kitchen and bath, small household appliances
Kitchens, bathrooms, and small household appliances must implement the business ideas of "product traction,marketing transformation, operation enhancement, and team activation", and use core product operations as thestarting point to promote the integration of research, production and marketing, open up the value chain, andenhance product competitiveness. We will strive to achieve the goal of entering the second camp of the industryfor water heaters, and make further progress for drinking water products in 2021, so as to stabilize the level ofindustry status. As for the team, we will continue to improve the self-support capabilities, and innovatively launchsmall and micro support projects to activate the team.
(5) Bio-medical care
Unswervingly implement the development strategy based on the related diversification in the bio-medical field,center on the business framework layout of life science, smart cold chain, and family health, go deep into the lifescience channel system construction, promote product upgrade iterations and new technology innovation researchand development to drive services and improve efficiency; based on regular cold storage business, move towardsautomated cold storage, and steadily expand smart cold chain business; promote the launch of new family healthproducts, and accumulate channel expansion to promote the rapid growth of the company.The above business plan and business objectives do not represent the listed Company‘s profit forecast of 2021,whether it can be achieved depends on the changes in market condition, the efforts of management team and other
factors, there are a lot of uncertainties, investors should pay special attention to it.(v) Possible risks and countermeasuresIn the face of home appliances market competition is more intense and other objective factors, the survivalenvironment of an enterprise will be even worse. In 2021, the Company will face risks as weak macroeconomicgrowth, severe industry situation, intensified competition, rising costs, trade friction, new business models andimpact of the internet era.
1. Macroeconomic downside
The COVID-19 epidemic has caused a dramatic decline in the global economy, which will take a long time torecover, and has restrained consumer demand for home appliances.
2. Soaring costs
From the second quarter of 2020, the global raw materials prices of bulk commodities have generally risen, andthe prices of chemicals and energy closely related to the refrigerator industry have increased more prominently.Under the background of the impact of the epidemic and the decline in corporate operating efficiency, the pricesof black and white materials have doubled, the prices of steel plates, plastics, copper, aluminum, etc. have risenacross the board, causing production costs to continue to rise, and bringing unprecedented pressure onprofitability.
3. Impact of cross-border Internet industry and challenges of new business modelWith the arrival of Internet era and artificial intelligence era, the Internet enterprises continue to cross boarder andswarm into intelligent home fields, which intensifies competition in the industry, subversive changes may occur atany time, and traditional household appliance enterprises are facing serious challenges.
4. Trade friction
The company pays close attention to the impact of Sino US trade frictions on its global business.In response to the above risks, combined with the industry situation in 2021 and the shortcomings in 2020, thecompany will adhere to the business policy of ―market-driven, product leadership, efficiency breakthroughs, andteam activation‖ in 2021, strengthen benchmarking, make rapid improvements, and make overall arrangement inproduct, technology, and market in advance, transform the company's products to high-end and intelligentdevelopment, while enriching the product line to create a comprehensive home appliance enterprise.
X. Reception of research, communication and interview(i) In the report period, reception of research, communication and interview
√ Applicable □ Not applicable
| Time | Location | Way | Receptio | Type | Main contents of the discussion and the | Basic situation index of investigation |
| n object | information provided | |||||
| 2020-9-24 | #2 reference room of the administrative center of the Company | Field research | Institute | Guolian Securities | Operation condition of the Company | http://irm.cninfo.com.cn/ircs/company/companyDetail?stockcode=000521&orgId=gssz0000521 |
| Reception (times) | 1 |
| Number of hospitality | 1 |
| Number of individual reception | 0 |
| Number of other reception | N/A |
| Whether to disclose, release or divulge material information that is not publicly available (Y/N) | N |
Section V. Important Events
I. Profit distribution plan of common stock and capitalizing of common reserves plan
(i) Formulation, Implementation and Adjustment of common stock Profit Distribution Policy EspeciallyCash Dividend policy during the Reporting Period
√Applicable □ Not applicable
During the reporting period, the company has strictly executed the profit distribution policy in accordance withthe "Articles of Association", the formulation and implementation of the company's cash dividend policy are inline with the provisions of "Articles of Association" and the requirements of the resolutions of shareholders'meeting, the dividends standards and proportion have been definite and clear, relevant decision-makingprocedures and mechanisms have been complete, the responsibilities of independent directors have been clear andhave played its due role, minority shareholders have had the opportunities to fully express their views andaspirations, and the legitimate interests of minority shareholders have been maintained. In addition, the―2018-2020 Shareholder Return Plan‖ approved by the company's board of directors and the resolutions ofshareholders‘ general meeting has made clear plans for the form and priority of profit distribution, the interval ofprofit distribution, the specific conditions and proportions of cash dividends, and the specific conditions forissuing stock dividend.In the reporting period, the Company implemented Profit distribution plan for year of 2019, that is, distribute 0.5Yuan (tax included) in cash for every 10 shares held by all shareholders of the Company based on total sharecapital 1,044,597,881 shares dated 31 December 2019 (including 881,733,881 shares of A-share and 162,864,000shares of B-share), cash dividend of 52,229,894.05 Yuan was distributed in total.
| Special explanation on cash dividend policy | |
| Satisfy regulations of General Meeting or requirement of Article of Association (Y/N): | Y |
| Well-defined and clearly dividend standards and proportion (Y/N): | Y |
| Completed relevant decision-making process and mechanism (Y/N): | Y |
| Independent directors perform duties completely and play a proper role (Y/N): | Y |
| Minority shareholders have opportunity to express opinions and demands totally and their legal rights are fully protected (Y/N): | Y |
| Condition and procedures are compliance and transparent while the cash bonus policy adjusted or changed (Y/N): | y |
(ii) Profit distribution plan (pre-plan) of common stock and capitalizing of common reserves plan (pre-plan)in latest three years (including the reporting period)
1. Profit distribution plan for year of 2018
Distribute 0.6 Yuan (tax included) in cash for every 10 shares held by all shareholders of the Company based ontotal share capital 1,044,597,881 shares dated 31 December 2018, cash dividend of 62,675,872.86 Yuan wasdistributed in total.
2. Profit distribution plan for year of 2019
Distribute 0.5 Yuan (tax included) in cash for every 10 shares held by all shareholders of the Company based ontotal share capital 1,044,597,881 shares dated 31 December 2019, cash dividend of 52,229,894.05 Yuan wasdistributed in total.
3. Profit distribution plan for year of 2020
Taking the total share capital on the equity registration date of the company‘s future implementation of the 2020annual equity distribution plan minus the repurchased shares as the base, distribute cash dividends of 0.5 yuan (taxincluded) for every 10 shares to all shareholders, not giving bonus shares, and not converting capital reserve in toequity. As of the disclosure date of this report, the actual shares that can participate in the profit distribution are1,036,208,993 shares (the company's total share capital of 1,044,597,881 shares deducting the repurchased sharesof 8,388,888 shares), and it is expected to distribute cash dividends of 51,810,449.65 yuan.In view of the fact that the Company is implementing the share repurchase, the company will use the total sharecapital on the equity registration date when the profit distribution plan is implemented in the future to deduct thetotal share capital after the company repurchased the shares in the special securities account as the base, and makeadjustments for the total distribution amount based on the principle of unchanged distribution ratio. The specificamount is subject to the actual distribution.The pre-plan had been deliberated and approved by the board of directors, and it need to be submitted the annualshareholders‘ general meeting of 2020 for its consideration.(iii) Cash dividend of common stock in latest three years (including the reporting period)
In RMB
| Year for bonus shares | Amount for cash bonus (tax included) | Net profit attributable to common stock shareholders of listed company in consolidation statement for bonus year | Ratio of the cash bonus in net profit attributable to common stock shareholders of listed company contained in consolidation statement | Proportion for cash bonus by other ways(i.e. share buy-backs) | Ratio of the cash bonus by other ways in net profit attributable to common stock shareholders of listed company contained in consolidation statement | Total cash bonus (including other ways) | Ratio of the total cash bonus (other ways included) in net profit attributable to common stock shareholders of listed company contained in consolidation statement |
| 2020 | 51,810,449.65 | -85,565,716.91 | -60.55% | 9,929,336.18 | -11.60% | 61,739,785.83 | -72.15% |
| 2019 | 52,229,894.05 | 56,441,479.14 | 92.54% | - | - | 52,229,894.05 | 92.54% |
| 2018 | 62,675,872.86 | 38,658,256.97 | 162.13% | - | - | 62,675,872.86 | 162.13% |
(iv) The Company gains profits in reporting period and the retained profit of common stock shareholdersprovided by parent company is positive but no plan of cash dividend proposed of common stock
□Applicable √ Not applicable
II. Profit distribution plan and capitalizing of common reserves plan for the Period
√Applicable □ Not applicable
| Bonus shares for every 10-share (Share) | 0 |
| Dividends for every 10-share (RMB) (Tax included) | 0.5 |
| Shares added for every 10-share base (Share) | 0 |
| Equity base of distribution plan (Share) | 1,036,208,993 |
| Total cash dividend (RMB) (Tax included) | 51,810,449.65 |
| Cash dividend for other ways (i.e. repurchased) (RMB) | 9,929,336.18 |
| Total cash dividend (including other way) (RMB) | 61,739,785.83 |
| Profits available for distribution (RMB) | 740,754,202.23 |
| Ratio of cash dividend (including other way) in total profit distribution | 100% |
| Cash dividend | |
| Taking the total share capital on the equity registration date of the company‘s future implementation of the 2020 annual equity distribution plan minus the repurchased shares as the base, distribute cash dividends of 0.5 yuan (tax included) for every 10 shares to all shareholders, not giving bonus shares, and not converting capital reserve in to equity. As of the disclosure date of this report, the actual shares that can participate in the profit distribution are 1,036,208,993 shares (the company's total share capital of 1,044,597,881 shares deducting the repurchased shares of 8,388,888 shares), and it is expected to distribute cash dividends of 51,810,449.65 yuan. In view of the fact that the Company is implementing the share repurchase, the company will use the total share capital on the equity registration date when the profit distribution plan is implemented in the future to deduct the total share capital after the company repurchased the shares in the special securities account as the base, and make adjustments for the total distribution amount based on the principle of unchanged distribution ratio. The specific amount is subject to the actual distribution. | |
| Detail explanation on profit distribution or capitalization from capital public reserve | |
III. Implementation of commitment
(1) Commitments that the actual controller, shareholders, related party, the buyer and the company havefulfilled during the reporting period and have not yet fulfilled by the end of reporting period
√Applicable □ Not applicable
| Commitment | Commitment party | Type/content | Date | Term | Implementation | |
| Commitments made in acquisition report or equity change report | Sichuan Changhong Electric Co., Ltd.(hereinafter, the ―Sichuan Changhong‖) | About committed and promised in order to prevent horizontal competition in the Acquisition Report of Hefei Meiling Co., Ltd. | 1. The acquirer shall not engage in refrigerator business or activity which competes or will compete with business of Meiling Electrical Appliances, or that which has interest conflict with Meiling Electrical Appliances. | June 12, 2007 | Valid for long term | Strictly implemented |
| 2. The acquirer promises to apply shareholders‘ right on a legal and reasonable manner and shall not take any action to limit or affect the normal operation of Meiling Electric. | Valid for long term | Strictly implemented | ||||
| 3. For any opportunity to engage in competing business, the acquirer will advise Meiling Electric in written for engaging such business or not. If Meiling Electrical Appliances gives no clear written reply as to whether engaging the competing business or not within 20 days after receipt of the aforesaid letter, it shall be deemed that it will not engage in such business. The acquirer will only engage in non-competing business provided that Meiling Electric confirms not to or is deemed to not engage in such non-competing business. | Valid for long term | Strictly implemented | ||||
| Commitment made during the non-public offer of 2010 | Sichuan Changhong | Commitment regarding to reducing and preventing competition with Meiling Electric | 1. It will not engage in such business or activity that competes with or has interest conflict with that of Meiling Electric except for the action taken for sake of Meiling Electric as required by Meiling Electrical Appliances. | June 24, 2010 | Valid for long term | Strictly implemented |
| 2. The Company promises to apply shareholders‘ right on a legal and reasonable manner and shall not take any action to limit or affect the normal operation of Meiling Electric | ||||||
| 3. In case that Meiling Electric expects, on the basis of its existing business, to expand its operation scope into the business which the Company has already operated, the Company agrees to grant priority acquisition right to Meiling Electric regarding such business if the same conditions are met, provided that the Company is still the controlling shareholder or actual controller of Meiling Electric | ||||||
| Commitment regarding to reducing and standardizing related transaction with Meiling Electric | 1. Measures will be adopted to prevent continued related transaction with Meiling Electric: as to the related transaction that can not be prevented, it will sign related transaction agreement with Meiling Electric under the market principles of ―equally paid and mutual benefit‖, and fairly determined the transaction price according to the market prevailing standards. | June 24, 2010 | Valid for long term | Strictly implemented | |
| 2. Perform the necessary obligations to make related directors and related shareholder abstain from voting according to relevant regulation, and observe legal procedure for approving related transaction and information disclosure obligations. | |||||
| 3. Promise not to hurt legal interests of Meiling Electric and other shareholders through related transaction. | |||||
| Commit to authorized Changhong Air-conditioner and Zhongshan Changhong use ―Changhong‖ trademark and relevant patents for free. | November 6, 2010 | Valid for long term | Strictly implemented | ||
| The Company | 1. Commit to disclose periodic reports on a truthful, accurate, complete, fair and prompt manner, to disclose all the information that have important influences over investors, to accept supervision under the CSRC and Shenzhen Stock Exchange. | January 7, 2011 | Valid for long term | Strictly implemented | |
| 2. Commit to make public clarification in respect of such information that is released from any public media and may result in misleading influences on stock price once the Company is aware of such information. | |||||
| 3. The directors, supervisors, senior management and core technicians of the Company will accept opinions and criticism from the social public, and they will not trade the Company‘s securities, directly or indirectly, with any inside information and other illegal methods. The Company promises that the documents submitted to Shenzhen Stock Exchange exist no false statement or material omission, and no relevant information will be disclosed during the application for listing without prior content from Shenzhen Stock Exchange. | |||||
| Commitment made in transfer of air conditioning assets property | Sichuan Changhong | 1. Since the property transfer didn‘t involve the buildings and land currently used by Changhong Air-conditioner, Sichuan Changhong commits, upon the completion of equity transfer, to continue to lease such assets to Changhong Air-conditioner at market price. | December 10, 2009 | Valid for long term | Strictly implemented |
| 2. After completion of this property transfer, Sichuan Changhong commits to manage to prevent new related transaction with Meiling Electric. For those which can not be prevented, Sichuan Changhong commits to determine the transaction price based on market accepted methods, so as to ensure fairness of related transaction and protection of the interest of Meiling Electric | Valid for long term | Strictly implemented | |||
| 3. Sichuan Changhong commits that it will not engage in air conditioning and refrigerator business or activity which competes or will compete with business of Meiling Electric, or that which has interest conflict with Meiling Electric | |||||
| Commitments by Annual performance incentive fund, incentive objects while purchasing stock of the Company with performance incentive funds and owned fund | Some of the Directors, supervisors and senior executives of the Company as well as other incentive objects | 1. Make promise not to reduce the shares of Meiling bought in every year during implementation of the performance incentive fund via any market ways in the later first year, which was allowed to be reduced by 50% according to the laws and regulations in the second year, and the remaining 50% was allowed to be reduced in the third year in accordance with the laws and regulations. | June 20, 2017 | Three years after current shares purchased | Fulfilled |
| 2. The directors, supervisors and senior management promised to manage in accordance with the relevant management approaches in accordance with the "Company Law", "Securities Law" and "The Company‘s shares held by the directors, supervisors and senior management of the listed company and its change management rules", as objects of annual performance incentive fund of Meiling, including but not limited to: during his tenure, the shares transferred each year shall not exceed 25% of the total number of shares held of the Company; shall not sell the shares of the Company within six months after bought it or purchase again six months after sold it; shall not transfer the shares held within six months after Dismission. | August 15, 2013, July 3, 2014, July 21, 2015, June 20, 2017 | From the date when annual incentive fund plan deliberated and approved by general meeting to 6 moths after director, supervisor and senior executives resigned | Strictly implemented | ||
| Commitments of not to reducing the | Sichuan Changhong Electric Co., | 1. Based on market conditions and as allowed by laws and rules, multiple measures were adopted adequately to increase shareholding of Meiling Electric, so as to demonstrate its firm confidence on the PRC economy and Meiling Electric with its actual actions, maintain sound development of | July 9, 2015 | Valid for long term | Strictly implemented |
| shares | Ltd.and persons acting in concert CHANGHONG (HK) TRADING LIMITED | capital market and promote recovery of healthy market | ||||
| 2. Continued to support operation and development of listed company as always and promoted the achievement of Meiling Electric. It is committed to bringing steady and real return to investors. | ||||||
| Commitment made during the non-public offer in 2016 | Directors and senior executives of the Company | Commitment on compensation of immediate dilution of return arising from non-public issuance of shares | 1. I hereby undertake not to deliver interests to other entities or individuals without consideration or at unfair conditions, nor to prejudice the Company‘s interests by other means. | February 23, 2016 | Till the completion of projects invested with the proceeds from this non-public issuance of shares | Implementing |
| 2. I hereby undertake to restrain my role related consumption behaviors. | ||||||
| 3. I hereby undertake not to conduct any investment and consumption which is not related to performance of duties with utilization of any company assets. | ||||||
| 5. In case that the Company adopts share based incentive plan in future, I hereby undertake that the exercise conditions of the incentive plan to be announced by the Company be linked to implementation of the compensation of return measures. |
| 6. For the period from the date of this commitment to the date of completion of this non-public issuance of shares, if the CSRC makes other new regulatory requirements on compensation of return measures and the commitment thereof, and in case that the above commitments cannot satisfy these new requirements from the CSRC, I hereby undertake to issue supplementary commitment in compliance with the latest CSRC requirements. |
| As one of the principals responsible for compensation of return measures, I, in case of break of the above commitments or refuse to perform the above |
| commitments, agree to receive relevant punishment or to adopt relevant administration measures according to the systems, rules and regulations of the CSRC and Shenzhen Stock Exchange. | |||||||
| The Company | 1. Promise to truly, accurately, completely, fairly and timely publish periodic reports, disclose all information that has significant impacts on the investors, and accept the supervision and management of China Securities Regulatory Commission and the Shenzhen Stock Exchange. | October 12, 2016 | Valid for long term | Strictly implemented | |||
| 2. Make commitments that the Company will publicly clarify in time after knowing any information on any public communications media that may cause misleading influence on the stock price | |||||||
| 3. The Company‘s directors, supervisors and senior executives will listen carefully to the opinions and criticisms of the public and never use any acquired inside information and other improper means to directly or indirectly engage in the trading activities of the Company's stock. | |||||||
| Perform the commitment promptly or not | √ Yes □ No | ||||||
| If the commitment is overdue and has not been fulfilled, the specific reasons for incomplete performance and the work plan for next step shall be explained in detail | Not applicable | ||||||
Note: for the commitments completed and exemption for implementing in above mentioned table, the Company will not disclose in next ordinary report
(ii) Concerning assets or project of the Company, which has profit forecast, and reporting period still inforecasting period, explain reasons of reaching the original profit forecast
□Applicable √ Not applicable
IV. Non-operational fund occupation from controlling shareholders and its related party
□Applicable √ Not applicable
No non-operational fund occupation from controlling shareholders and its related party in period.Disclosure date for specific approval opinion on fund occupation from CPA: 31 March 2021Disclosure index for specific approval opinion on fund occupation from CPA: Juchao website:
www.cninfo.com.cn-- Specific Explanation on Non-operational fund occupation and its related capitaltransactions for year of 2020 of Changhong Meiling Co., Ltd.V. Explanation from Board of Directors, Supervisory Committee and Independent Directors (if applicable)for “Qualified Opinion” that issued by CPA
□Applicable √ Not applicable
VI. Particulars about the changes in aspect of accounting policy, estimates and calculation methodcompared with the financial report of last year
√Applicable □ Not applicable
Found more details in 36. Change of major accounting policy and estimation under IV. Major accounting policyand estimation carried in the Section XII. Financial ReportVII. Major accounting errors within reporting period that needs retrospective restatement
□Applicable √ Not applicable
No major accounting errors within reporting period that needs retrospective restatement for the Company in theperiod.VIII. Compare with last year’s financial report; explain changes in consolidation statement’s scope
√Applicable □ Not applicable
In the reporting period, the consolidated financial statements of the Company cover 31 subsidiaries, includingSichuan Changhong Air-conditioner Co., Ltd, Zhongshan Changhong Electric Co., Ltd. And Zhongke MeilingCryogenic Technology Co., Ltd. etc. Compared with the previous year, during the reporting period two enterprisesare included in the consolidate scope, that is CH-Meiling International (Philippines) Inc. and Hefei ChanghongMeiling Life Electric Co., Ltd. And the subsidiary Guangxi Huidian Household Appliances Co., Ltd. andChangmei Technology Co., Ltd. are reduced for clearing off. In addition, the subsidiaries Chengdu MeilingElectrical Marketing Co., Ltd., Fuzhou Meiling Electrical Marketing Co., Ltd., Nanjing Meiling ElectricalMarketing Co., Ltd., Hangzhou Meiling Electrical Marketing Co., Ltd., Shanghai Meiling Electrical Marketing
Co., Ltd., and Beijing Meiling Electrical Marketing Co., Ltd. were decreased due to the merger.More details can be seen in the report ―VII. Changes in the scope of the merger‖ and ―XIII. Equity in other entities‖of ―Section XII Financial Report‖IX. Appointment and non-reappointment (dismissal) of CPA(i) Accounting firm appointed
| Name of domestic accounting firm | Shine Wing Certified Public Accountants (LLP) |
| Remuneration for domestic accounting firm (in 10 thousand Yuan) | 131 |
| Continuous life of auditing service for domestic accounting firm | 12-year |
| Name of domestic CPA | Li Xifu, Wang Xiaodong |
| Continuous life of auditing service for domestic CPA | Li Xifu (4 years), Wang Xiaodong (1 year) |
| Name of foreign accounting firm (if applicable) | N/A |
| Remuneration for foreign accounting firm (10 thousand Yuan) (if applicable) | N/A |
| Continuous life of auditing service for foreign accounting firm (if applicable) | N/A |
| Name of foreign CPA (if applicable) | N/A |
| Continuous life of auditing service for foreign CPA (if applicable) | - |
(ii) Re-appointed accounting firms in this period
□Yes √ No
(iii) Appointment of internal control auditing accounting firm, financial consultant or sponsor
√Applicable □ Not applicable
In reporting period, Shine Wing Certified Public Accountants (LLP) was appointed as audit institute of internalcontrol for the Company, auditing charge for internal control amounting as 250,000 Yuan.X. Particular about suspension and termination of listing after annual report disclosed
□Applicable √ Not applicable
XI. Bankruptcy reorganization
□Applicable √ Not applicable
XII. Material lawsuits and arbitration of the Company
□Applicable √ Not applicable
(i) No significant lawsuits or arbitration occurred in the reporting period.(ii) Some other significant lawsuits and arbitration in the reporting period.
To maintain the independence and integrity of "Meiling" trademark and trade name, the Company carried outserials of lawsuits, attribution and administration suits with ―Meiling‖ trademark and corporate name concerned,please found more in 2014 first quarter report, 2014 semi-annual report, the 2014 annual report disclosedrespectively on April 19, 2014, August 12, 2014, and March 26, 2014 for the relevant progress. Up to now, inview of the infringement to the Company‘s "Meiling" trademark and trade name, false propaganda and unfaircompetition in the market, the Company has carried out many ways including administrative reports, criminalinvestigation and civil litigation to fight against infringement and counterfeiting behavior in the whole country inorder to stopped the infringing behavior.XIII. Penalty and rectification
□Applicable √ Not applicable
No penalty and rectification for the Company in reporting period.XIV. Integrity of the company and its controlling shareholders and actual controllers
□Applicable √ Not applicable
During the reporting period, the Company and the controlling shareholders and the actual controllers have hadgood reputation, and there is no large amount due unliquidated debt sentenced by the court.XV. Implementation of the company’s stock incentive plan, employee stock ownership plan or otheremployee incentives
√Applicable □ Not applicable
Implementation for performance incentive fund in 2012 to 2016On August 9, 2012 and August 28, 2012, the Company considers the adoption of "Hefei Meiling annualperformance incentive fund implementation plan" (hereinafter referred to as "" incentive "") on the 16
th
meeting ofthe 7th
board of directors and the 2012-second provisional shareholders meeting. Details were disclosed oninformation disclosure media appointed by the Company as "Securities Times", "Chinese Securities Daily","Hong Kong Commercial Daily" and the Juchao network (www.cninfo.com.cn) on August 10, 2012 and August29 in the form of announcement (No.: 2012-028, No.:2012-035).
1. Implementation about 2012, 2013, 2014 and 2016 performance incentive fund provision and distributionplanSee details in "Implementation of the company's annual incentive fund" in "XII Implementation of the company'sstock incentive plan, employee stock ownership plan, or other employee incentive measures" in "Section VImportant Events" of the company's "2019 Semi-Annual Report" disclosed on 15 August 2020.All the stocks purchased by the incentive object are locked according to their promises. Up to the end of thisreporting period, the company's stock purchased by 2012 annual performance incentive objects (non-directors,supervisors and senior management), 2013 annual performance incentive objects (non-directors, supervisors and
senior management), the 2014 annual performance incentive objects (non-directors, supervisors and seniormanagement) with their granted 2012 annual performance incentive funds and own funds and 2013 & 2014annual performance incentive funds and own funds have been fully released for trading; the stock purchased by2016 annual performance incentive objects (non-directors, supervisors and senior management), with their granted2016 annual performance incentive funds and own funds are expired for three years, the stock all shall be releasedfor trading, details of the share reduction for the above mentioned objects see below.In the Period, the Company‘s shares purchased by the current directors, supervisors and senior executives amongthe performance incentive targets due to the implementation of the 2012, 2013, 2014 and 2016 annualperformance incentive plans have not reduced the shareholdings.
2. Shareholding and reducing of performance incentive objects of the CompanyEnded as 31 December 2020, the total shares hold by all incentive objects due to the implementation ofperformance incentive plan is 7,325,892 shares, a 0.7013% in total share capital of the Company, including5,635,999 A-share, a 0.5395% in total share capital and 1,689,893 B-share, a 0.1618% in total share capital of theCompany. Other grantees of the 2012, 2013, 2014 and 2016 incentive plan have reduced holding of 9,187,923 inaggregate, accounting for about 0.8796% of the total share capital and 3,874,325 shares are reduced in total duringthe reporting period.Up to now, the company's 2012-2016 annual performance incentive fund plan has been implemented and theincentive objects have strictly complied with the relevant commitments. The company will no longer disclose thismatter in the next periodic report.XVI. Major related party transaction(i) Related party transaction with routine operation concerned
√Applicable □ Not applicable
1. Related party transaction with routine operation concerned
| Serial | Related party | Relationship | Type of related transaction | Content of related transaction | Pricing principle | Related transaction price (in 10 thousand Yuan) | Related transaction amount (in 10 thousand Yuan) | Proportion in similar transactions (%) | Trading limit approved (in 10 thousand Yuan) | Whether over the approved limited or not (Y/N) | Clearing form for related transaction | Available similar market price | Date of disclosure | Index of disclosure |
| 1 | Sichuan Changhong Electric Co., Ltd. | Controlling shareholder and ultimate controller | Commodity purchased | Plastic particles, high gloss, epidemic prevention materials, R-three-terminal voltage regulator, integrated circuits, R-insulated gate bipolar transistors, steel plates, plastic parts, Youku membership cards, etc. | Marketing price | 34,964.57 | 34,964.57 | 2.82% | 60,000.00 | N | Spot exchange, Bank acceptance | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 2 | Sichuan Changhong Electronics Holding Group Co., Ltd. | Controlling shareholder and ultimate controller | Commodity purchased | Heatstroke prevention and cooling medicine | Marketing price | 1.78 | 1.78 | 0.00% | 8,000.00 | N | Spot exchange | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 3 | Changhong Huayi Compressor Co., Ltd. | Other enterprise control under the | Commodity purchased | Compressor, Door seal | Marketing price | 46,880.45 | 46,880.45 | 3.79% | 72,000.00 | N | Bank acceptance | -- | November 30, 2019, December 18,2019 and | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: |
| same controlling shareholder and ultimate controller | August 15, 2020 | 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 | ||||||||||||
| 4 | Sichuan Changhong Mold Plastic Tech. Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Commodity purchased | Plastic products, refrigerator accessories, etc. | Marketing price | 59,503.77 | 59,503.77 | 4.81% | 140,000.00 | N | Spot exchange, Bank acceptance | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 5 | Sichuan Changhong Jijia Fine Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Commodity purchased | Base plate components, ventilation hoods, compressor components, brackets, pressure plates, sheet metal parts | Marketing price | 23,064.49 | 23,064.49 | 1.86% | 60,000.00 | N | Spot exchange, Bank acceptance | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 6 | Sichuan Changhong Package Printing Co., Ltd. | Other enterprise control under the same | Commodity purchased | Packing boxes, fixed support blocks, cartons, foams, maintenance parts, labels, wall-hung boilers, etc. | Marketing price | 6,016.51 | 6,016.51 | 0.49% | 22,000.00 | N | Bank acceptance | -- | November 30, 2019, December 18,2019 and August 15, | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: |
| controlling shareholder and ultimate controller | 2020 | 2019-087, No.: 2020-056 and No.: 2020-062 | ||||||||||||
| 7 | Sichuan Changhong Precision Electronics Tech. Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Commodity purchased | PCB components, etc. | Marketing price | 1,003.39 | 1,003.39 | 0.08% | 10,000.00 | N | Bank acceptance | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 8 | 081 Electronic Group Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Commodity purchased | Power Transformers | Marketing price | 22.70 | 22.70 | 0.00% | 8,000.00 | N | Bank acceptance | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 9 | Guangdong Changhong Electronics Co., Ltd. | Other enterprise control under the same controlling | Commodity purchased | Epidemic prevention materials, foam, carton | Marketing price | 293.63 | 293.63 | 0.02% | 8,000.00 | N | Spot exchange, Bank acceptance | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: |
| shareholder and ultimate controller | 2020-056 and No.: 2020-062 | |||||||||||||
| 10 | Sichuan Changhong Intelligent Manufacturing Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Commodity purchased | Circuit board, mold | Marketing price | 13.32 | 13.32 | 0.00% | 8,000.00 | N | Spot exchange | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 11 | Hefei Changhong Industrial Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Commodity purchased | Control board, power cord, frequency conversion integrated board | Marketing price | 632.25 | 632.25 | 0.05% | 8,000.00 | N | Bank acceptance | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 12 | Sichuan Changhong New Energy Technology Co., Ltd. | Other enterprise control under the same controlling shareholder | Commodity purchased | Battery | Marketing price | 3.97 | 3.97 | 0.00% | 8,000.00 | N | Spot exchange | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and |
| and ultimate controller | No.: 2020-062 | |||||||||||||
| 13 | Sichuan Zhiyijia Network Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Commodity purchased | LCD TV, air conditioner, egg cooker | Marketing price | 371.14 | 371.14 | 0.03% | 8,000.00 | N | Spot exchange | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 14 | Changhong International Holdings (Hong Kong) Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Commodity purchased | Air conditioning | Marketing price | 2,655.02 | 2,655.02 | 0.21% | 8,000.00 | N | Spot exchange | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 15 | Sichuan Changhong Electronic Products Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate | Commodity purchased | Voice components, electrical components | Marketing price | 1,588.38 | 1,588.38 | 0.13% | 6,000.00 | N | Bank acceptance | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and |
| controller | No.: 2020-062 | |||||||||||||
| 16 | Sichuan Jiahong Industrial Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Commodity purchased | Exit ticket | Marketing price | 0.03 | 0.03 | 0.00% | 8,000.00 | N | Spot exchange | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 17 | Sichuan Ailian Science & Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Commodity purchased | WiFi module, hole cover, sealing strip, sponge, temperature and humidity sensor, etc. | Marketing price | 1,796.54 | 1,796.54 | 0.15% | 8,000.00 | N | Spot exchange, Bank acceptance | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 18 | Sichuan Aichuang Science & Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate | Commodity purchased | Frequency conversion integrated board, control board, display board, R-wifi module, electric heater, humidifier, electric control board | Marketing price | 12,606.33 | 12,606.33 | 1.02% | 18,000.00 | N | Spot exchange, Bank acceptance | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and |
| controller | No.: 2020-062 | |||||||||||||
| 19 | Hunan Grand-Pro Intelligent Tech. Company | Other enterprise control under the same controlling shareholder and ultimate controller | Commodity purchased | Smart vacuum cleaner | Marketing price | 880.73 | 880.73 | 0.07% | 2,500.00 | N | Bank acceptance | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 20 | Lejiayi Chain Management Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Commodity purchased | Moon cake gift box | Marketing price | 0.33 | 0.33 | 0.00% | 8,000.00 | N | Spot exchange | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 21 | Guangyuan Changhong Electronic Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate | Commodity purchased | Drinking fountain | Marketing price | 0.88 | 0.88 | 0.00% | 8,000.00 | N | Spot exchange | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and |
| controller | No.: 2020-062 | |||||||||||||
| 22 | Sichuan Service Exp. Appliance Service Chain Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Commodity purchased | Printed board | Marketing price | 0.19 | 0.19 | 0.00% | 8,000.00 | N | Spot exchange | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 23 | Sichuan Changhong Electronics Holding Group Co., Ltd. | Controlling shareholder and ultimate controller | Accept labor | Shuttle transportation fee | Marketing price | 142.86 | 142.86 | 0.11% | 8,000.00 | N | Spot exchange | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 24 | Sichuan Changhong Electric Co., Ltd. | Controlling shareholder and ultimate controller | Accept labor | Software usage fee, inspection and certification fee, technical service fee, consulting service fee, equipment instrumentation fee, etc. | Marketing price | 1,306.45 | 1,306.45 | 1.00% | 5,600.00 | N | Spot exchange | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 25 | Sichuan Changhong Minsheng Logistics Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Accept labor | Transportation, storage, loading and unloading | Marketing price | 41,499.17 | 41,499.17 | 33.58% | 60,000.00 | N | Spot exchange | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 26 | Sichuan Changhong Mold Plastic Tech. Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Accept labor | Repair costs, packaging costs, mold changes, labor costs | Marketing price | 44.80 | 44.80 | 0.03% | 5,600.00 | N | Spot exchange | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 27 | Sichuan Service Exp. Appliance Service Chain Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Accept labor | Three guarantees fee, service support fee, air conditioning installation fee, after-sales service fee | Marketing price | 27,575.35 | 27,575.35 | 21.03% | 35,000.00 | N | Spot exchange | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 28 | Sichuan Hongxin Software Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Accept labor | Software usage fee, hollow USO system online fee, brand barcode system fee, SAP module activation fee, etc. | Marketing price | 112.08 | 112.08 | 0.09% | 5,600.00 | N | Spot exchange | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 29 | Guangdong Changhong Electronics Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Accept labor | Service support fee, conference room usage fee, information consultation fee, etc. | Marketing price | 49.15 | 49.15 | 0.04% | 5,600.00 | N | Spot exchange | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 30 | Sichuan Jiahong Industrial Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Accept labor | Greening expenses, meal expenses, business activity expenses, training fee | Marketing price | 53.35 | 53.35 | 0.04% | 8,000.00 | N | Spot exchange | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 31 | Sichuan Changhong International Hotel Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Accept labor | Conference fee, accommodation fee, business activity fee | Marketing price | 5.14 | 5.14 | 0.00% | 8,000.00 | N | Spot exchange | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 32 | Sichuan Changhong International Travel Service Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Accept labor | Air tickets, travel service fees, travel expenses | Marketing price | 24.54 | 24.54 | 0.02% | 8,000.00 | N | Spot exchange | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 33 | Sichuan Changhong Property Services Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Accept labor | Dormitory facility equipment service fee, property management fee | Marketing price | 304.44 | 304.44 | 0.23% | 8,000.00 | N | Spot exchange | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 34 | Sichuan Hongwei Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Accept labor | Testing and testing fees, project development fees, inspection and certification fees | Marketing price | 435.97 | 435.97 | 0.33% | 5,600.00 | N | Spot exchange | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 35 | Sichuan Zhiyijia Network Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Accept labor | Operating expenses, advertising expenses, market support expenses | Marketing price | 18.56 | 18.56 | 0.01% | 5,600.00 | N | Spot exchange | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 36 | Sichuan Changhong Network Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Accept labor | Handling fee | Marketing price | 3.29 | 3.29 | 0.00% | 5,600.00 | N | Spot exchange | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 37 | Sichuan Changhong Intelligent Manufacturing Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Accept labor | Equipment repair costs, mold changes, technical cooperation | Marketing price | 1.64 | 1.64 | 0.00% | 8,000.00 | N | Spot exchange | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 38 | Sichuan Changhong Jijia Fine Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Accept labor | Equipment repair costs | Marketing price | 100.21 | 100.21 | 0.08% | 5,600.00 | N | Spot exchange | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 39 | Sichuan Changhong Gerun Environmental Protection Tech. Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Accept labor | Hazardous waste disposal fee | Marketing price | 8.67 | 8.67 | 0.01% | 8,000.00 | N | Spot exchange | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 40 | Sichuan Aichuang Science & Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Accept labor | Project cooperation costs | Marketing price | 1.60 | 1.60 | 0.00% | 8,000.00 | N | Spot exchange | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 41 | Sichuan Hongmofang Network Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Accept labor | Market support fee | Marketing price | 0.21 | 0.21 | 0.00% | 5,600.00 | N | Spot exchange | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 42 | Guangyuan Changhong Electronic Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Accept labor | Labor dispatch service fee | Marketing price | 64.03 | 64.03 | 0.05% | 5,600.00 | N | Spot exchange | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 43 | Sichuan Changhong Electric Co., Ltd. | Controlling shareholder and ultimate controller | Buy fuel power | Water, electricity, gas, etc. | Marketing price | 1,845.73 | 1,845.73 | 0.15% | 60,000.00 | N | Spot exchange | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 44 | Changhong Huayi Compressor Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Buy fuel power | Steam | Marketing price | 51.12 | 51.12 | 0.00% | 150.00 | N | Spot exchange | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 45 | Guangdong Changhong Electronics Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Buy fuel power | Water, electricity, etc. | Marketing price | 112.28 | 112.28 | 0.01% | 8,000.00 | N | Spot exchange | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 46 | Hefei Changhong New Energy Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Buy fuel power | Electricity | Marketing price | 36.68 | 36.68 | 0.00% | 8,000.00 | N | Spot exchange | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 47 | Sichuan Changhong Property Services Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Buy fuel power | Electricity | Marketing price | 2.08 | 2.08 | 0.00% | 8,000.00 | N | Spot exchange | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 48 | Sichuan Changhong Electric Co., Ltd. | Controlling shareholder and ultimate controller | Sales of goods | Isocyanate, air conditioning, waste materials, epidemic prevention materials, refrigerators, small appliances, etc. | Marketing price | 1,036.21 | 1,036.21 | 0.07% | 8,000.00 | N | Spot exchange | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 49 | Sichuan Changhong Jijia Fine Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | Color plates, lower beams, bottom plates, brackets, processed materials, water purifiers | Marketing price | 5,460.30 | 5,460.30 | 0.39% | 8,000.00 | N | Spot exchange | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 50 | Sichuan Changhong Mold Plastic Tech. Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | Refrigerator accessories, sponge plastic | Marketing price | 23,483.31 | 23,483.31 | 1.66% | 35,000.00 | N | Spot exchange | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 51 | Lejiayi Chain Management Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | Refrigerators, Air conditioning, washing machines, freezers, small appliances, etc. | Marketing price | 549.82 | 549.82 | 0.04% | 19,200.00 | N | Spot exchange, Bank acceptance | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 52 | Sichuan Zhiyijia Network Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | Refrigerators, Air conditioning, washing machines, freezers, small appliances, etc. | Marketing price | 436,631.26 | 436,631.26 | 30.85% | 852,000.00 | N | Spot exchange, Bank acceptance | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 53 | Sichuan Changhong Minsheng Logistics Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | Refrigerators, Air conditioning, washing machines, freezers, small appliances, etc. | Marketing price | 2.77 | 2.77 | 0.00% | 19,200.00 | N | Spot exchange | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 54 | Sichuan Service Exp. Appliance Service Chain Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | Dimensional accessories, Air conditioning | Marketing price | 403.10 | 403.10 | 0.03% | 19,200.00 | N | Spot exchange | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 55 | Sichuan Changhong Gerun Environmental Protection Tech. Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | Waste materials | Marketing price | 572.25 | 572.25 | 0.04% | 6,000.00 | N | Spot exchange | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 56 | Hefei Changhong Industrial Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | Compressor, Air conditioning | Marketing price | 0.43 | 0.43 | 0.00% | 19,200.00 | N | Spot exchange | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 57 | Sichuan Huafeng Enterprise Group Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | Air conditioning | Marketing price | 4.77 | 4.77 | 0.00% | 6,000.00 | N | Spot exchange | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 58 | Sichuan Changhong Real Estate Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | Hood, stove | Marketing price | 1.31 | 1.31 | 0.00% | 19,200.00 | N | Spot exchange | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 59 | Guangdong Changhong Electronics Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | Washing machine, Air conditioning, small appliances, etc. | Marketing price | 158.46 | 158.46 | 0.01% | 19,200.00 | N | Spot exchange | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 60 | Sichuan Changhong Intelligent Manufacturing Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | Boiling water machine | Marketing price | 1.64 | 1.64 | 0.00% | 6,000.00 | N | Spot exchange | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 61 | Sichuan Changhong Power Source Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | Air conditioning | Marketing price | 1.81 | 1.81 | 0.00% | 19,200.00 | N | Spot exchange | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 62 | Sichuan Changhong Education Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | Eye protection lamp, Air conditioning | Marketing price | -86.91 | -86.91 | -0.01% | 6,000.00 | N | Spot exchange | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 63 | Guangyuan Changhong Electronic Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | Air conditioning | Marketing price | 0.35 | 0.35 | 0.00% | 19,200.00 | N | Spot exchange | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 64 | Sichuan Changhong New Energy Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | Air conditioning | Marketing price | 31.18 | 31.18 | 0.00% | 6,000.00 | N | Spot exchange | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 65 | Sichuan Changhong International Hotel Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | Air conditioning | Marketing price | 70.00 | 70.00 | 0.00% | 6,000.00 | N | Spot exchange | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 66 | PT.CHANGHONGELECTRICINDONESIA | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | Refrigerator | Marketing price | 70.35 | 70.35 | 0.00% | 19,200.00 | N | Spot exchange | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 67 | CHANGHONG(HK)TRADINGLIMITED | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | Air conditioning | Marketing price | 48,410.22 | 48,410.22 | 3.42% | 150,000.00 | N | Spot exchange | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 68 | CHANGHON GELECTRIC (AUSTRALIA)PTY.LTD. | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | Refrigerator | Marketing price | 14,983.14 | 14,983.14 | 1.06% | 150,000.00 | N | Spot exchange | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 69 | Orion.PDP.Co.,ltd | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | Refrigerator | Marketing price | 2,634.90 | 2,634.90 | 0.19% | 4,200.00 | N | Spot exchange | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 70 | Changhong Europe Electric s.r.o | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | Refrigerator | Marketing price | 5,483.90 | 5,483.90 | 0.39% | 19,200.00 | N | Spot exchange | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 71 | CHANGHONG ELECTRIC MIDDLE EAST FZCO | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | Refrigerator | Marketing price | 1,158.97 | 1,158.97 | 0.08% | 19,200.00 | N | Spot exchange | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 72 | Changhong International Holdings (Hong Kong) Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | Refrigerator, Air conditioning, small appliances | Marketing price | 13,452.31 | 13,452.31 | 0.95% | 35,000.00 | N | Spot exchange | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 73 | Sichuan Aichuang Science & Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | Raw materials, photocouplers, refrigerators | Marketing price | 724.53 | 724.53 | 0.05% | 6,000.00 | N | Spot exchange | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 74 | Mianyang Huafeng Interconnect Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | Air conditioning | Marketing price | 20.92 | 20.92 | 0.00% | 6,000.00 | N | Spot exchange | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 75 | Sichuan Hongmofang Network Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | Small appliances | Marketing price | 1.73 | 1.73 | 0.00% | 19,200.00 | N | Spot exchange | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 76 | Sichuan Changhong Mold Plastic Tech. Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Providing services | Labor fee | Marketing price | 8.01 | 8.01 | 0.24% | 5,600.00 | N | Spot exchange | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 77 | Sichuan Changhong Jijia Fine Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Providing services | Labor fee | Marketing price | 13.57 | 13.57 | 0.40% | 5,600.00 | N | Spot exchange | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 78 | Sichuan Aichuang Science & Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Providing services | Technical service fee | Marketing price | 88.76 | 88.76 | 2.64% | 6,000.00 | N | Spot exchange | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 79 | Sichuan Huafeng Enterprise Group Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Providing services | Installation fee | Marketing price | 31.66 | 31.66 | 0.94% | 6,000.00 | N | Spot exchange | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 80 | Sichuan Zhiyijia Network Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Providing services | Conference fees | Marketing price | 0.94 | 0.94 | 0.03% | 5,600.00 | N | Spot exchange | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 81 | Sichuan Changhong Intelligent Manufacturing Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Providing services | Labor fee | Marketing price | 49.45 | 49.45 | 1.47% | 6,000.00 | N | Spot exchange | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 82 | Sichuan Changhong Electric Co., Ltd. | Controlling shareholder and ultimate controller | Providing services | Labor fee | Marketing price | 265.66 | 265.66 | 7.89% | 5,600.00 | N | Spot exchange | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 83 | Sichuan Changhong Device Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Providing services | Labor fee, technical service fee | Marketing price | 10.56 | 10.56 | 0.31% | 5,600.00 | N | Spot exchange | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 84 | Sichuan Changhong New Energy Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Providing services | Labor fee | Marketing price | 11.39 | 11.39 | 0.34% | 6,000.00 | N | Spot exchange | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 85 | Sichuan Changhong Network Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Providing services | Labor fee | Marketing price | 99.14 | 99.14 | 2.94% | 5,600.00 | N | Spot exchange | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 86 | Mianyang Huafeng Interconnect Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Providing services | Installation fee | Marketing price | 19.94 | 19.94 | 0.59% | 6,000.00 | N | Spot exchange | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 87 | Changhong Huayi Compressor Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Providing services | Technical service fee | Marketing price | 56.60 | 56.60 | 1.68% | 72,000.00 | N | Spot exchange | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 88 | Sichuan Changhong Minsheng Logistics Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Providing services | Forklift Service | Marketing price | 0.71 | 0.71 | 0.02% | 5,600.00 | N | Spot exchange | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 89 | Sichuan Hongxin Software Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Providing services | Consulting service fee | Marketing price | 5.04 | 5.04 | 0.15% | 5,600.00 | N | Spot exchange | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 90 | Sichuan Changhong Intelligent Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Providing services | Labor fee | Marketing price | 54.72 | 54.72 | 1.62% | 6,000.00 | N | Spot exchange | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 91 | Sichuan Changhong Education Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Providing services | Labor fee | Marketing price | 2.17 | 2.17 | 0.06% | 6,000.00 | N | Spot exchange | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 92 | Sichuan Changhong Real Estate Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Providing services | Installation fee | Marketing price | -3.92 | -3.92 | -0.12% | 5,600.00 | N | Spot exchange | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 93 | Sichuan Changhong International Hotel Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Providing services | Technical service fee, Maintenance fees | Marketing price | 3.61 | 3.61 | 0.11% | 6,000.00 | N | Spot exchange | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 94 | Sichuan Changhong Electronic Parts Co., Ltd | Other enterprise control under the same controlling shareholder and ultimate controller | Providing services | Service fee | Marketing price | 35.40 | 35.40 | 1.05% | 5,600.00 | N | Spot exchange | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 95 | Guangdong Changhong Electronics Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Provide fuel power | Water and electricity bills | Marketing price | 3.84 | 3.84 | 0.00% | 19,200.00 | N | Spot exchange | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 96 | Sichuan Changhong Minsheng Logistics Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Provide fuel power | Water and electricity bills | Marketing price | 8.67 | 8.67 | 0.00% | 19,200.00 | N | Spot exchange | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 97 | Sichuan Changhong Jijia Fine Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Provide fuel power | Water, electricity and gas costs | Marketing price | 15.87 | 15.87 | 0.00% | 19,200.00 | N | Spot exchange | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 98 | Sichuan Changhong Mold Plastic Tech. Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Provide fuel power | Water, electricity and gas costs | Marketing price | 726.86 | 726.86 | 0.05% | 19,200.00 | N | Spot exchange | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 99 | Sichuan Zhiyijia Network Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Provide fuel power | Water and electricity bills | Marketing price | 4.57 | 4.57 | 0.00% | 19,200.00 | N | Spot exchange | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 100 | Sichuan Hongwei Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Provide fuel power | Energy cost | Marketing price | 0.31 | 0.31 | 0.00% | 19,200.00 | N | Spot exchange | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 101 | Sichuan Changhong Precision Electronics Tech. Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Provide fuel power | Water and electricity bills | Marketing price | 1.59 | 1.59 | 0.00% | 19,200.00 | N | Spot exchange | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 102 | Sichuan Changhong Device Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Provide fuel power | Water and electricity bills | Marketing price | 84.47 | 84.47 | 0.01% | 19,200.00 | N | Spot exchange | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 103 | Mianyang Science & Technology City Big Data Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Provide fuel power | Water and electricity bills | Marketing price | 0.68 | 0.68 | 0.00% | 19,200.00 | N | Spot exchange | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 104 | Sichuan Changhong Network Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Provide fuel power | Water and electricity bills | Marketing price | 0.65 | 0.65 | 0.00% | 19,200.00 | N | Spot exchange | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 105 | Sichuan Jiahong Industrial Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Provide fuel power | Water and electricity bills | Marketing price | 1.31 | 1.31 | 0.00% | 6,000.00 | N | Spot exchange | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 106 | Sichuan Changhong Jijia Fine Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Rent to the related party | Forklift, warehouse, apartment, plant, equipment | Marketing price | 752.79 | 752.79 | 5.39% | 5,000.00 | N | Spot exchange | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 107 | Sichuan Changhong Mold Plastic Tech. Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Rent to the related party | Warehouse, factory building, apartment, equipment, second living area | Marketing price | 968.57 | 968.57 | 6.94% | 5,000.00 | N | Spot exchange | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 108 | Sichuan Changhong Minsheng Logistics Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Rent to the related party | Partial lease of office buildings, warehouse offices, factories, apartments | Marketing price | 268.07 | 268.07 | 1.92% | 5,000.00 | N | Spot exchange | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 109 | Sichuan Service Exp. Appliance Service Chain Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Rent to the related party | Apartments, offices, forklifts | Marketing price | 20.95 | 20.95 | 0.15% | 5,000.00 | N | Spot exchange | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 110 | Hefei Changhong Industrial Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Rent to the related party | Apartment, factory warehouse | Marketing price | 23.06 | 23.06 | 0.17% | 5,000.00 | N | Spot exchange | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 111 | Sichuan Changhong Precision Electronics Tech. Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Rent to the related party | Apartment, second living area | Marketing price | 11.78 | 11.78 | 0.08% | 5,000.00 | N | Spot exchange | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 112 | Sichuan Ailian Science & Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Rent to the related party | Warehouse | Marketing price | 0.27 | 0.27 | 0.00% | 6,000.00 | N | Spot exchange | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 113 | Sichuan Aichuang Science & Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Rent to the related party | Warehouse, forklift | Marketing price | 3.75 | 3.75 | 0.03% | 6,000.00 | N | Spot exchange | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 114 | Sichuan Hongwei Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Rent to the related party | Apartments, factories | Marketing price | 7.65 | 7.65 | 0.05% | 5,000.00 | N | Spot exchange | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 115 | Sichuan Zhiyijia Network Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Rent to the related party | Apartments | Marketing price | 20.94 | 20.94 | 0.15% | 5,000.00 | N | Spot exchange | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 116 | Sichuan Changhong Electric Co., Ltd. | Controlling shareholder and ultimate controller | Rent to the related party | Apartments, buildings, meeting rooms | Marketing price | 287.08 | 287.08 | 2.06% | 5,000.00 | N | Spot exchange | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 117 | Guangdong Changhong Electronics Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Rent to the related party | Second living area | Marketing price | 14.91 | 14.91 | 0.11% | 5,000.00 | N | Spot exchange | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 118 | Changhong Huayi Compressor Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Rent to the related party | Warehouse | Marketing price | 0.38 | 0.38 | 0.00% | 5,000.00 | N | Spot exchange | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 119 | Sichuan Changhong Device Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Rent to the related party | Factory building, second living area | Marketing price | 172.16 | 172.16 | 1.23% | 5,000.00 | N | Spot exchange | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 120 | Sichuan Changhong Electronics Holding Group Co., Ltd. | Controlling shareholder and ultimate controller | Rent from the related party | Marketing price/Market leasing | 38.30 | 38.30 | 0.27% | 8,000.00 | N | Spot exchange | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 121 | Sichuan Changhong Electric Co., Ltd. | Controlling shareholder and ultimate controller | Rent from the related party | Factory building, office, staff dormitory | Marketing price | 738.20 | 738.20 | 5.29% | 5,000.00 | N | Spot exchange | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 122 | Chengdu Changhong Electronic Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Rent from the related party | Office | Marketing price | 62.43 | 62.43 | 0.45% | 5,000.00 | N | Spot exchange | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 123 | Guangdong Changhong Electronics Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Rent from the related party | Staff dormitory, factory building | Marketing price | 135.27 | 135.27 | 0.97% | 5,000.00 | N | Spot exchange | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 124 | Sichuan Changhong Property Services Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Rent from the related party | Flowers | Marketing price | 0.93 | 0.93 | 0.01% | 8,000.00 | N | Spot exchange | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 125 | Changhong Huayi Compressor Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Rent from the related party | Staff dorm | Marketing price | 5.32 | 5.32 | 0.04% | 150.00 | N | Spot exchange | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 126 | Sichuan Changhong Intelligent Manufacturing Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Purchase /Purchase and construction of fixed assets | Quality improvement and transformation of production lines, equipment, and balers | Marketing price | 492.02 | 492.02 | 1.37% | 7,000.00 | N | Spot exchange | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 127 | Sichuan Hongxin Software Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Purchase and construction of fixed assets | Smart production project, secondary development of WMS finished product barcode system | Marketing price | 61.32 | 61.32 | 0.17% | 15,000.00 | N | Spot exchange | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 128 | Sichuan Changhong Mold Plastic Tech. Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Purchase of fixed assets | Mould | Marketing price | 165.46 | 165.46 | 0.46% | 15,000.00 | N | Spot exchange | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 129 | Sichuan Zhiyijia Network Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Purchase of fixed assets | Projector, Air conditioning | Marketing price | 82.05 | 82.05 | 0.23% | 15,000.00 | N | Spot exchange | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 130 | Sichuan Huanyu Industrial Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Purchase and construction of fixed assets | Plant construction | Marketing price | 216.48 | 216.48 | 0.60% | 8,000.00 | N | Spot exchange | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 131 | Sichuan Changhong Jineng Sunshine Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Purchase of fixed assets | Street lamp | Marketing price | 4.23 | 4.23 | 0.01% | 15,000.00 | N | Spot exchange | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 132 | Sichuan Service Exp. Appliance Service Chain Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Purchase of fixed assets | Air conditioning accessories | Marketing price | 0.52 | 0.52 | 0.00% | 15,000.00 | N | Spot exchange | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 |
| 133 | Sichuan Changhong Electric Co., Ltd. | Controlling shareholder and ultimate controller | Sale of fixed assets | Power plant | Marketing price | 3.96 | 3.96 | 2.36% | 15,000.00 | N | Spot exchange | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 | |
| 134 | Yuanxin Financial Lease Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Financial leasing, commercial factoring and bill financing | Financial leasing, commercial factoring and billing | Marketing price | 6,466.21 | 6,466.21 | -- | 6,500.00 | N | Spot exchange | -- | November 30, 2019, December 18,2019 and August 15, 2020 | Juchao Website (www.cninfo.com.cn) No.: 2019-077, No.: 2019-080, No.: 2019-087, No.: 2020-056 and No.: 2020-062 | |
| Total | -- | -- | 833,990.12 | -- | -- | -- | -- | -- | -- | -- | |||||
| Detail of sales return with major amount involved | Not applicable | ||||||||||||||
| Report the actual implementation of the daily related transactions which were projected about their total amount by types during the reporting period (if applicable) | 1. It is estimated that the related transaction amount resulted by purchasing goods (including door shell and plastic products etc.) and accepting fuel and power from Sichuan Changhong and its subsidiary by the Company for year of 2020 was RMB 3060 million at most (tax-excluded), actually RMB 1,321,119,400 occurred in reporting period. | ||||||||||||||
| 2. It is estimated that the related transaction amount resulted by purchasing goods (including compressor purchased, smart vacuum cleaner etc.) from Changhong Huayi and its subsidiary by the Company for year of 2020 was RMB 745 million at most (tax-excluded), actually RMB 477,665,000 occurred in reporting period. | |||||||||||||||
| 3. It is estimated that the related transaction amount resulted by purchasing or selling equipment, software, maintenance and spare parts and molds etc. from Sichuan Changhong and its subsidiary by the Company for year of 2020 was RMB 150 million at most (tax-excluded), actually RMB 3,175,400 occurred in reporting period. | |||||||||||||||
| 4. It is estimated that the related transaction amount resulted by selling goods and providing fuel and power to Sichuan Changhong and its subsidiary by the Company for year of 2020 was RMB 11072 million at most (tax-excluded), actually RMB 5,521,372,600 occurred in reporting period. | |
| 5. It is estimated that the related transaction amount resulted by accepting energy, power and service from Huayi Compressor and its subsidiary by the Company for year of 2020 was RMB 1.5 million at most (tax-excluded), actually RMB 511,200 occurred in reporting period. | |
| 6. It is estimated that the related transaction amount resulted by leasing business to Sichuan Changhong and its subsidiary by the Company for year of 2020 was RMB 50 million at most (tax-excluded), actually RMB 34,842,400 occurred in reporting period. | |
| 7. It is estimated that the related transaction amount from domestic finished goods logistic business outsourcing to Sichuan Changhong Minsheng Logistic Co., Ltd. by the Company for year of 2020 was RMB 600 million at most (tax-excluded), actually RMB 414,991,700 occurred in reporting period. | |
| 8. It is estimated that the related transaction amount from after sales service of domestic goods outsourcing to Sichuan Service Exp. Appliance Service Chain Co., Ltd. by the Company for year of 2020 was RMB 350 million at most actually RMB 275,753,500 occurred in reporting period. | |
| 9. It is estimated that the related transaction amount resulted by accepting other service and labor service etc. or providing other service and labor service etc. to Sichuan Changhong and its subsidiary by the Company for year of 2020 was RMB 56 million at most (tax-excluded), actually RMB 26,264,600 occurred in reporting period. | |
| 10. It is estimated that the related transaction amount resulted by selling goods and leasing business from Sichuan Changhong Electronics Group and its subsidiary by the Company for year of 2020 was RMB 102 million at most (tax-excluded), actually RMB 42,403,100 occurred in reporting period. | |
| 11. It is estimated that the related transaction amount resulted by purchasing goods and receiving labor services, fuel power, leasing and purchasing equipment etc. from Sichuan Changhong Electronics Group and its subsidiary by the Company for year of 2020 was RMB 330 million at most (tax-excluded), actually RMB 157,140,200 occurred in reporting period. | |
| 12. It is estimated that the related transaction amount resulted by receiving finance lease, commercial factoring and financial reconciliation business etc. from Yuanxin Financial Lease Co., Ltd. was RMB 65 million at most, actually RMB 64,662,100 occurred in reporting period. | |
| Reasons for major differences between trading price and market reference price | Not applicable |
2. Related party transactions with Changhong Finance Company
According to The Proposal on Continuing Related Transactions with Sichuan Changhong Group Finance Co., Ltd.in 2020 approved by the deliberation of the 31
st meeting of the ninth board of directors and the 16
thmeeting of theninth board of supervisors and the fourth extraordinary general meeting of shareholders in 2019 held onNovember 29 and December 17, 2019, and approved by resolution of the 41
stmeeting of the ninth board ofdirectors and the fourth extraordinary general meeting of shareholders held on August 14 and October 12, 2020,approved and agreed the company to continue carry out the financial service cooperation with SichuanChanghong Group Finance Co., Ltd. (hereinafter referred to as ―Changhong Finance Company‖) and sign atriennial Financial Service Agreement, Changhong Finance Company shall provide a series of financial servicessuch as deposit and loan in its business scope according to the requirements of the Company and its subsidiaries.The related transactions between the company and its subsidiaries and Changhong Finance Company from thebeginning of the year to the end of the reporting period are as follows:
In RMB
| Item | Balance at year-begin | Increased in Current Year | Decreased in Current Year | Balance at year-end | Interest and commission charge received or paid |
| I. Savings in Changhong Group Finance Company | 3,702,382,630.38 | 40,457,214,165.68 | 41,361,340,787.54 | 2,798,256,008.52 | 110,131,246.67 |
| II. Borrowings from Changhong Group Finance Company | |||||
| 1.Short-term loans | 125,000,000.00 | 125,000,000.00 | 60,638.89 | ||
| 2.Long-term loans | |||||
| III. Other financial business | |||||
| 1.Notes drawing | 999,585,345.49 | 2,689,798,690.93 | 2,173,865,064.17 | 1,515,518,972.25 | 1,347,344.67 |
| 2.Notes discounted | 638,333,179.10 | 2,296,064,512.81 | 1,588,150,718.29 | 1,346,246,973.62 | 14,477,124.87 |
According to the regulation of Information Disclosure Business Memorandum No. 2 - Transactions and Related Transactions of theShenzhen Stock Exchange, the company issued the Risk Continuous Assessment Report About Sichuan Changhong Group FinanceCo., Ltd. for the deposit, loan and other financial services that the company carried out with Changhong Finance Company during thereporting period, and disclosed at www.cninfo.com.cn on 31 March 2021(ii) Related transactions by assets acquisition and sold
□Applicable √ Not applicable
There are no related transactions by assets acquisition and sold in the period
(iii) Related party transaction of joint foreign investment
√Applicable □ Not applicable
| Co-investor | Association relationship | Invested enterprise | Main business of the invested enterprise | Registered capital of the invested enterprise | Total assets of the invested enterprise (10 thousand Yuan) | Net assets of the invested enterprise (10 thousand Yuan) | Net profit of the invested enterprise (10 thousand Yuan) |
| Sichuan Changhong Electronics Holding Group Co., Ltd., Sichuan Changhong Electric Co., Ltd., Changhong Huayi Compressor Co., Ltd. | Controlling shareholder; other companies controlled by the same controlling shareholder and ultimate controlling party | Sichuan Changhong Group Finance Co., Ltd. | Handle financial affairs and financing consulting, credit verification and related consulting and agency services for member units; assist member units in the collection and payment of transaction funds; approved insurance agency services; provide guarantees to member units; handle entrusted loans among member units; handle bill acceptance and discount for member units; handle internal transfer and settlement of accounts among member units and the corresponding settlement and clearing plan design; absorb member units‘ deposits; handle loans and financial leases for member units; engage in inter-bank lending; handle entrusted investment among member units; securities investment other than stock investment; buyer's credit of member units' products; consumer credit of member units' products; spot foreign exchange settlement and sale business; other businesses approved by the China Banking and Insurance Regulatory Commission. | 1,887,941,751.02 yuan (before the capital increase of the company and Changhong Huayi), 2,693,938,365.84 yuan (after the capital increase of the company and Changhong Huayi) | 1,664,164.67 | 345,497.88 | 8,526.50 |
| Progress of major projects under construction of the invested enterprise (if applicable) | N/A | ||||||
After deliberated and approved by the 27
th session of 9
th BOD and 3
rdextraordinary shareholders general meeting of 2019 held on 10September 2019 and 27 September, it is agreed that the company and its related party, Changhong Huayi Compressor Co., Ltd.(hereinafter referred to as "Changhong Huayi"), respectively, will increase the capital to Changhong Finance Company by 500million yuan with its own funds, the total capital increase will not exceed RMB 1 billion. Among the 500 million yuan of thecompany's capital increase to Changhong Finance Company, 402,998,300 yuan was included in its registered capital, and 97,001,700yuan was included in the capital reserve.After the capital increase, the registered capital of Changhong Finance Company was changed from RMB 1,887,941,751.02 to RMB2,693,938,365.84. After the change of registered capital and equity, Sichuan Changhong Electronics Holding Group Co., Ltd. andSichuan Changhong Electric Co., Ltd. hold 943,970,875.51 yuan respectively of Changhong Finance Company and account for 35.04%
of the shares, the company holds 402,998,307.41 yuan of Changhong Finance Company, accounting for 14.96% of the shares,Changhong Huayi holds 402,998,307.41 yuan of Changhong Finance Company, accounting for 14.96% of the shares. During thereporting period, the company has completed the capital increase in Changhong Finance. Found more on announcement (Notice No.:
2019-060, 2019-061, 2019-067, 2020-051 and 2020-054) released on appointed media China Securities Journal, Securities Times,Hong Kong Commercial Daily and Juchao Website dated 10 September 2019, 27 September 2019, 28 July 2020 and 8 August 2020respectively.(iv) Connect of related liability and debt
√Applicable □ Not applicable
Whether has non-operational contact of related liability and debts or not
□Yes √ No
No non-operational contact of related liability or debts in Period
(v) Other related party transactions
√Applicable □ Not applicable
1. On August 14, 2020, the resolutions of the 41st meeting of the ninth board of directors and the 22nd meeting ofthe ninth board of supervisors of the company approved and agreed that the company should increase the dailyrelated transaction amount of no more than 45 million yuan (excluding tax) from finance leasing, commercialfactoring, and financial documents and other businesses expected to be provided by Yuanxin Finance Leasing Co.,Ltd. (hereinafter referred to as "Yuanxin Leasing") to the company and its holding subsidiaries in 2020. After thisincrease, it was expected that in 2020, the total daily related transactions between the company and its subsidiariesand Sichuan Changhong and its subsidiaries (excluding Changhong Huayi Compressor Co., Ltd.) would notexceed 15,403 million yuan (excluding tax), in which the total amount of daily related transactions with YuanxinLeasing in 2020 was expected to not exceed 65 million yuan (excluding tax).
2. On October 27, 2020, the resolution of the third meeting of the company's tenth board of directors approved andagreed that should apply to the Anhui Branch of the Export-Import Bank of China for a maximum credit line of300 million yuan in accordance with the company's business development and financing and credit work needs,the credit term is two years, and the types of credits include working capital loans, etc., the controlling shareholderSichuan Changhong provides free guarantees for the aforementioned credits, and the Company does not need toprovide counter-guarantees.
3. On December 11, 2020 and December 30, 2020, the resolutions of the 4
th meeting of the 10
thboard of directorsof the company, the 3
rd
meeting of the 10
th
board of supervisors, and the 5
th
extraordinary shareholders‘ meeting of2020 passed and approved the estimated daily related transactions amount occurred among the company and itsholding subsidiaries with the related parties in 2021 totaling no more than 151888.5 million yuan (excluding tax),and agreed that the company and Sichuan Changhong Group Finance Co., Ltd. should continue to carry out thefinancial service related transactions such as loans and deposits in 2021.Related searches for disclosure website of interim report with major related transaction concerned
| Interim report | Disclosure date | Website for disclosure |
| Resolution of the 41th session of 9th BOD (2020-56) Resolution of the 22th session of 9th Supervisory Committee(2020-57) | August 15, 2020 | Juchao Website: http://www.cninfo.com.cn |
| Increase the forecast announcement of daily related party transactions for year of 2020 (2020-062) | ||
| Resolution of the 3rd session of 10th BOD (2020-090) Notice on Controlling Shareholder Provide Guarantee for the Company to Apply for Credit Guarantee from the Financial Institutions and Related Transactions (2020-091) | October 28, 2020 | Juchao Website: http://www.cninfo.com.cn |
| Resolution of the 4th session of 10th BOD (2020-097) Resolution of the 3rd session of 10th Supervisory Committee(2020-098) Resolution of 5th extraordinary shareholders general meeting of 2020 (2020-107) | December 12, 2020; December 30, 2020 | Juchao Website: http://www.cninfo.com.cn |
XVII. Significant contract and implementations(i) Entrust, contract and leasing
1. Entrust
□Applicable √ Not applicable
No entrust in Period.
2. Contract
□Applicable √ Not applicable
No contract in Period.
3. Leasing
□Applicable √ Not applicable
No leasing in the period(ii) Major guarantee
√Applicable □ Not applicable
1. Guarantee
The guarantees provided by the company to the wholly-owned and holding subsidiaries are guarantees forsupporting bank credits generated by its production and operation. The guaranty style is the guarantee. Thecompany and its subsidiaries did not provide guarantees to subjects outside the scope of consolidated statements.The company and its holding subsidiaries had no overdue external guarantees, no external guarantees involvinglitigation, and no losses due to the award of the guarantee. Up to 31 December 2020, the external guarantees ofthe Company and subsidiaries are as follows:
In 10 thousand Yuan
| Particulars about the external guarantee of the Company and subsidiaries (Barring the guarantee for subsidiaries) | ||||||||
| Name of the | Related Announcement | Guarantee limit | Actual | Actual guarantee | Guarantee | Guarantee term | Complete | Guarantee for |
| Company guaranteed | disclosure date | date of happening | limit | type | implementation or not | related party | ||||||
| - | - | - | - | - | - | - | - | - | ||||
| Total approving external guarantee in report period (A1) | 0 | Total actual occurred external guarantee in report period (A2) | 0 | |||||||||
| Total approved external guarantee at the end of report period ( A3) | 0 | Total actual balance of external guarantee at the end of report period (A4) | 0 | |||||||||
| Guarantee between the Company and the subsidiaries | ||||||||||||
| Name of the Company guaranteed | Related Announcement disclosure date | Guarantee limit | Actual date of happening (Date of signing agreement) | Actual guarantee limit | Guarantee type | Guarantee term | Complete implementation or not | Guarantee for related party | ||||
| Zhongshan Changhong Electric Co., Ltd. | Notice No.: 2018-005, 2018-009 and 2018-029 released on 30 March, 11 May 2018 respectively | 70,000 | September 11, 2018 | 10,000 | Joint liability guaranty | One year | Y | N | ||||
| October 11, 2018 | 5,000 | Joint liability guaranty | One year | Y | N | |||||||
| Notice No.: 2019-004, 2019-006 and 2019-012 released on 30 Jan., 23 Feb. 2019 respectively | 130,000 | January 22, 2019 | 10,000 | Joint liability guaranty | One year | Y | N | |||||
| April 4, 2019 | 5,500 | Joint liability guaranty | One year | Y | N | |||||||
| April 30, 2019 | 10,000 | Joint liability guaranty | One year | Y | N | |||||||
| May 31, 2019 | 5,000 | Joint liability guaranty | One year | Y | N | |||||||
| July 23, 2019 | 15,000 | Joint liability guaranty | One year | Y | N | |||||||
| August 21, 2019 | 2,000 | Joint liability guaranty | One year | Y | N | |||||||
| September 19, 2019 | 10,000 | Joint liability guaranty | One year | Y | N | |||||||
| Notice No. 2019-090, No. 2020-002 released on 26 Dec. 2019 and 11 Jan. 2020 | 150,000 | March 5, 2020 | 5,000 | Joint liability guaranty | One year | N | N | |||||
| March 9, 2020 | 15,000 | Joint liability guaranty | One year | N | N | |||||||
| March 27, 2020 | 5,500 | Joint liability guaranty | One year | N | N | |||||||
| March 30, 2020 | 20,000 | Joint liability guaranty | One year | N | N | |||
| April 14, 2020 | 17,900 | Joint liability guaranty | One year | N | N | |||
| April 28, 2020 | 12,000 | Joint liability guaranty | One year | N | N | |||
| June 10, 2020 | 20,000 | Joint liability guaranty | One year | N | N | |||
| August 17, 2020 | 10,000 | Joint liability guaranty | One year | N | N | |||
| September 2, 2020 | 15,000 | Joint liability guaranty | One year | N | N | |||
| Notice No. 2020-097, No. 2020-098, No. 2020-101, and No. 2020-107, released on 11 Dec. 2020 and 30 Dec. 2020 | 140,000 | - | - | - | - | - | - | |
| Changhong Meiling Ridian Technology Co., Ltd. | Notice No. 2019-004, No. 2019-006, No. 2019-012 released on 30 Jan. 2019 and 23 Feb. 2019 | 26,000 | January 22, 2019 | 2,500 | Joint liability guaranty | One year | Y | N |
| April 30, 2019 | 4,000 | Joint liability guaranty | One year | Y | N | |||
| September 4, 2019 | 6,500 | Joint liability guaranty | One year | Y | N | |||
| Notice No. 2019-090, No. 2020-002 released on 26 Dec. 2019 and 11 Jan. 2020 | 30,000 | April 2, 2020 | 3,000 | Joint liability guaranty | One year | N | N | |
| April 2, 2020 | 4,000 | Joint liability guaranty | One year | N | N | |||
| August 17, 2020 | 6,500 | Joint liability guaranty | One year | N | N | |||
| September 2, 2020 | 5,000 | Joint liability guaranty | One year | N | N | |||
| Notice No. 2020-097, No. 2020-098, No. 2020-101, and No. 2020-107, released on 11 Dec. 2020 and 30 Dec. 2020 | 30,000 | - | - | - | - | - | - |
| Zhongke Meiling Cryogenic Technology Co., Ltd. | Notice No. 2019-004, No. 2019-006, No. 2019-012 released on 30 Jan. 2019 and 23 Feb. 2019 | 14,000 | July 17, 2019 | 3,000 | Joint liability guaranty | One year | Y | N |
| August 23, 2019 | 2,000 | Joint liability guaranty | One year | Y | N | |||
| September 24, 2019 | 920 | Joint liability guaranty | One year | Y | N | |||
| October 22, 2019 | 3,000 | Joint liability guaranty | One year | Y | N | |||
| December 30, 2019 | 2,000 | Joint liability guaranty | 11 months | N | N | |||
| Notice No. 2019-090, No. 2020-002, No. 2020-012, No. 2020-019, and No. 2020-036, released on 26 Dec. 2019, 11 Jan. 2020, 28 Mar. 2020 and 30 May 2020 | 18,000 | March 10, 2020 | 1,000 | Joint liability guaranty | One year | N | N | |
| June 1, 2020 | 1,500 | Joint liability guaranty | 9.5 months | N | N | |||
| June 18, 2020 | 500 | Joint liability guaranty | 8.6 months | N | N | |||
| August 24, 2020 | 2,000 | Joint liability guaranty | One year | N | N | |||
| September 25, 2020 | 3,000 | Joint liability guaranty | One year | N | N | |||
| November 19, 2020 | 1,000.00 | Joint liability guaranty | One year | N | N | |||
| December 25, 2020 | 2,000.00 | Joint liability guaranty | 9 months | N | N | |||
| Notice No. 2020-097, No. 2020-098, No. 2020-101, and No. 2020-107, released on 11 Dec. 2020 and 30 Dec. 2020 | 26,000 | - | - | - | - | - | - | |
| Sichuan Changhong Air-conditioner Co., Ltd. | Notice No. 2019-004, No. 2019-006, No. 2019-012 released on 30 Jan. 2019 and 23 Feb. 2019 | 100,000 | July 30, 2019 | 20,000.00 | Joint liability guaranty | 8 months | Y | N |
| Notice No. 2019-090, No. 2020-002 released on | 100,000 | - | - | - | - | - | - |
| 26 Dec. 2019 and 11 Jan. 2020 | ||||||||
| Notice No. 2020-097, No. 2020-098, No. 2020-101, and No. 2020-107, released on 11 Dec. 2020 and 30 Dec. 2020 | 100,000 | - | - | - | - | - | - | |
| ChanghongRUBA Trade Company | Notice No. 2018-061, No. 2018-063 released 9 Nov. 2018 | 6,264 note 1 | January 10, 2019 | 2,062.41 | Joint liability guaranty | One year | Y | N |
| Notice No. 2019-083, No. 2019-084, No. 2019-087 released on 7 Dec. 2019 and 18 Dec. 2019 | 6,345note2 | December 23, 2019 | 2,103.51 | Joint liability guaranty | One year | N | N | |
| January 14, 2020 | 1,983.25 | Joint liability guaranty | 11.4 months | Y | N | |||
| December 16, 2020 | 1,831.50 | Joint liability guaranty | One year | N | N | |||
| Notice No. 2020-097, No. 2020-098, No. 2020-101, and No. 2020-107, released on 11 Dec. 2020 and 30 Dec. 2020 | 5,920.38 note 3 | - | - | - | - | - | - | |
| Jiangxi Meiling Electric Appliance Co., Ltd. | Notice No. 2019-004, No. 2019-006, No. 2019-012 released on 30 Jan. 2019 and 23 Feb. 2019 | 25,000 | January 10, 2019 | 5,000.00 | Joint liability guaranty | One year | Y | N |
| March 21, 2019 | 10,000.00 | Joint liability guaranty | One year | Y | N | |||
| Notice No. 2019-090, No. 2020-002 released on 26 Dec. 2019 and 11 Jan. 2020 | 15,000 | April 9, 2020 | 10,000 | Joint liability guaranty | One year | N | N | |
| Notice No. 2020-097, No. 2020-098, No. 2020-101, and No. | 10,000 | - | - | - | - | - | - |
| 2020-107, released on 11 Dec. 2020 and 30 Dec. 2020 | ||||||||||||||||
| Hefei Meiling Nonferrous Metal Products Co., Ltd. | Notice No. 2019-090, No. 2020-002 released on 26 Dec. 2019 and 11 Jan. 2020 | 3,000 | March 20, 2020 | 1,000 | Joint liability guaranty | One year | N | N | ||||||||
| Notice No. 2020-097, No. 2020-098, No. 2020-101, and No. 2020-107, released on 11 Dec. 2020 and 30 Dec. 2020 | 3,000 | - | - | - | - | - | - | |||||||||
| Hefei Meiling Group Holdings Limited | Notice No. 2019-090, No. 2020-002 released on 26 Dec. 2019 and 11 Jan. 2020 | 50,000 | March 26, 2020 | 6,000 | Joint liability guaranty | One year | N | N | ||||||||
| Notice No. 2020-097, No. 2020-098, No. 2020-101, and No. 2020-107, released on 11 Dec. 2020 and 30 Dec. 2020 | 50,000 | December 30, 2020 | 10,000.00 | Joint liability guaranty | One year | N | N | |||||||||
| Hebei Hongmao Daily Appliance Technology Co., Ltd. | Notice No. 2019-090, No. 2020-002 released on 26 Dec. 2019 and 11 Jan. 2020 | 4,000 | - | - | - | - | - | - | ||||||||
| Total amount of approving guarantee for subsidiaries in report period (B1) | 734,920.38 | Total amount of actual occurred guarantee for subsidiaries in report period (B2) | 316,300.67 | |||||||||||||
| Total amount of approved guarantee for subsidiaries at the end of reporting period (B3) | 755,265.38 | Total balance of actual guarantee for subsidiaries at the end of reporting period (B4) | 182,835.01 | |||||||||||||
| Guarantee of the subsidiaries for the subsidiaries | ||||||||||||||||
| Name of the Company | Related Announcement disclosure date | Guarantee limit | Actual date of happening | Actual guarantee limit | Guarantee type | Guarantee term | Complete imple | Guarantee for related | ||||||||
| guaranteed | mentation or not | party | ||||||||
| - | - | - | - | - | - | - | - | - | ||
| Total amount of approving guarantee for subsidiaries in report period (C1) | 0 | Total amount of actual occurred guarantee for subsidiaries in report period (C2) | 0 | |||||||
| Total amount of approved guarantee for subsidiaries at the end of reporting period (C3) | 0 | Total balance of actual guarantee for subsidiaries at the end of reporting period (C4) | 0 | |||||||
| Total amount of guarantee of the Company (total of three abovementioned guarantee) | ||||||||||
| Total amount of approving guarantee in report period (A1+B1+C1) | 734,920.38 | Total amount of actual occurred guarantee in report period (A2+B2+C2) | 316,300.67 | |||||||
| Total amount of approved guarantee at the end of report period (A3+B3+C3) | 755,265.38 | Total balance of actual guarantee at the end of report period (A4+B4+C4) | 182,835.01 | |||||||
| Ratio of actual guarantee (A4+B4+C4) in net assets of the Company | 37.67% | |||||||||
| Including: | ||||||||||
| Amount of guarantee for shareholders, actual controller and its related parties (D) | 0 | |||||||||
| The debts guarantee amount provided for the guaranteed parties whose assets-liability ratio exceed 70% directly or indirectly (E) | 158,835.01 | |||||||||
| Proportion of total amount of guarantee in net assets of the Company exceed 50% (F) | 0 | |||||||||
| Total amount of the aforesaid three guarantees (D+E+F) | 158,835.01 | |||||||||
| Explanations on possibly bearing joint and several liquidating responsibilities for undue guarantees (if applicable) | N/A | |||||||||
| Explanations on external guarantee against regulated procedures (if applicable) | N.A | |||||||||
Note 1: In order to unify the currency for totaling, the exchange rate here was converted from the US dollar to the RMB 6.96 onOctober 31, 2018. For details, please refer to the announcement No. 2018-063 disclosed by the company.
Note 2: In order to unify the currency for totaling, the exchange rate here was converted from the US dollar to the RMB 7.05 onOctober 31, 2019. For details, please refer to the announcement No. 2019-090 disclosed by the company.
Note 3: In order to unify the currency for totaling, the exchange rate here was converted from the US dollar to the RMB 6.5782 onNovember 30, 2020. For details, please refer to the announcement No. 2020-101 disclosed by the company.
The above-mentioned guarantee objects are the wholly-owned and holding subsidiaries of the Company, and these wholly-ownedand holding subsidiaries are in normal production and operation, there are no overdue loans, and the guarantee risks are controllable.During the reporting period, the highest level of security the Company provided amounted to 7,349,203,800 Yuan by the approval,the actual amount of guarantee is 3,163,006,700 Yuan. At the end of the reporting period, the practical guarantee balance amounted to1,828,350,100 Yuan, accounting for the Company‘s latest net assets ratio of 37.67%.
Explanation on guarantee with composite way: Not applicable
2. Guarantee outside against the regulation
□Applicable √Not applicable
No guarantee outside against the regulation in Period.(iii) Entrust others to cash asset management
1. Trust financing
√Applicable □ Not applicable
Trust financing in the period
In 10 thousand Yuan
| Type | Capital resources | Amount for entrust | Undue balance | Overdue amount |
| Bank financing products | Idle raised funds | 45,000 | 0 | 0 |
| Own idle funds | 48,500 | 0 | 0 | |
| Total | 93,500 | 0 | 0 | |
Details of the single major amount, or high-risk trust investment with low security, poor fluidity andnon-guaranteed:
√Applicable □ Not applicable
In 10 thousand Yuan
| Trustee institution (or name of trustee) | Trustee type | Product type | Amount | Source of funds | Start date | Expiry date | Capital investment purpose | Criteria for fixing reward | Reference annual rate of return | Anticipated income (if applicable) | Actual gains/losses in period | Actual collected gains/losses in period | Amount of reserve for devaluation of withdrawing (if applicable) | Whether approved by legal procedure (Y/N) | Whether has entrust finance plan in the future | Summary of the items and related query index (if applicable) |
| Chengdu Branch of Bohai Bank Co., Ltd | Bank | Principal-guaranteed with floating income | 10,000.00 | Idle raised funds | February 21, 2020 | May 25, 2020 | The structured deposit product, the structural derivatives tied with the 3-month interbank lending rate in London (Libor) | Annualized returns: 3.80% | 3.80% | 99.22 | 97.86 | 97.86 | N/A | Y | Not applicable | Juchao Website(www.cninfo.com.cn) (Notice No.: 2020-010) |
| Mianyang Economic Development Zone branch of Bank of China Limited | Bank | Guaranteed capital and minimum return | 5,000.00 | Idle raised funds | March 10, 2020 | June 10, 2020 | This product is a structured deposit product. The spot exchange rate of US dollar to Swiss franc is taken from the quotes U.S. dollar drawn by EBS (Interbank Electronic Trading System) between 5 a.m. | Annualized returns: 3.60% | 3.60% | 46 | 45.37 | 45.37 | N/A | Y | Not applicable | Juchao Website(www.cninfo.com.cn) (Notice No.: 2020-011) |
| Sydney time every Monday and 5 p.m. New York time every Friday against Swiss francs. | ||||||||||||||||
| Hefei Branch of China Guangfa Bank | Bank | Principal-guaranteed with floating income | 5,000.00 | Idle own funds | April 20, 2020 | July 20, 2020 | Investment of the central bank bill in bank market, treasury bond, corporate bonds, short-term financing, medium-term bills, inter-bank borrowing, inter-bank deposits, bills or bill repurchase etc., and interest rate-linked option products | Annualized returns: 3.85% | 3.85% | 48.66 | 48.12 | 48.12 | N/A | Y | Not applicable | Juchao Website(www.cninfo.com.cn) (Notice No.: 2020-026) |
| Hefei Branch of Bank of East Asia (China) Co., Ltd. | Bank | Principal-guaranteed with floating income | 5,000.00 | Idle own funds | April 21, 2020 | July 21, 2020 | Deposits embedded in financial derivatives absorbed by the Bank are linked to exchange rate fluctuations so that depositors can obtain corresponding returns on the basis of certain risks. | Annualized returns: 3.80% | 3.80% | 48.03 | 48.03 | 48.03 | N/A | Y | Not applicable | Juchao Website(www.cninfo.com.cn) (Notice No.: 2020-026) |
| Mianyang Economic Development Zone branch of Bank of China Limited | Bank | Guaranteed capital and minimum return | 10,000.00 | Idle own funds | April 23, 2020 | July 24, 2020 | Funds raised by this product are operated uniformly by the Bank of China, and business management is carried out in accordance with the principle of separating basic deposits from derivative transactions. The principal part raised is included in the unified operation and management of the internal funds of the Bank of China, and included in the payment scope of deposit reserves and deposit insurance premiums. Products embedded derivatives are partly invested in derivatives markets such as exchange rates, interest rates, commodities, and indices, and the final | Annualized returns: 3.75% | 3.75% | 95.83 | 94.52 | 94.52 | N/A | Y | Not applicable | Juchao Website(www.cninfo.com.cn) (Notice No.: 2020-027) |
| product performance is linked to derivatives. During the investment period, Bank of China uses the income method to value the embedded option price of this structured deposit. | ||||||||||||||||
| Hefei Branch of China Everbright Bank Co., Ltd. | Bank | Principal-guaranteed with floating income | 5,000.00 | Idle own funds | May 21, 2020 | August 21, 2020 | This product is a RMB structured deposit product with embedded financial derivative instruments. The bank will invest the raised structured deposit funds in bank time deposits, and at the same time invest in financial derivative transactions (including but not limited to options and swaps and other derivative transactions) in domestic or international financial | Annualized returns: 3.30% | 3.30% | 42.17 | 42.50 | 42.50 | N/A | Y | Not applicable | Juchao Website(www.cninfo.com.cn) (Notice No.: 2020-033) |
| markets by limiting the income of the time deposits to the upper limit, the sum of the investment gains and losses of financial derivative transactions and the bank deposit interest together constitute the income of structured deposit products. | ||||||||||||||||
| Mianyang Branch of Bank of Communications Co., Ltd. | Bank | Principal-guaranteed with floating income | 5,000.00 | Idle own funds | May 27, 2020 | August 27, 2020 | The funds collected by the structured deposit products are included in the deposit management category as the principal | Annualized returns: 3.30% | 3.30% | 42.17 | 41.59 | 41.59 | N/A | Y | Not applicable | Juchao Website(www.cninfo.com.cn) (Notice No.: 2020-034) |
| Chengdu Branch of Bohai Bank Co., Ltd | Bank | Principal-guaranteed with floating income | 10,000.00 | Idle raised funds | May 27, 2020 | August 26, 2020 | The structured deposit product, the derivatives tied with the 3-month interbank lending rate in London (Libor) | Annualized returns: 3.45% | 3.45% | 87.21 | 86.01 | 86.01 | N/A | Y | Not applicable | Juchao Website(www.cninfo.com.cn) (Notice No.: 2020-035) |
| Mianyang Branch of Bank of Communic | Bank | Principal-guaranteed with floating income | 5,000.00 | Idle own funds | June 5, 2020 | September 7, 2020 | The funds collected by the structured deposit products are included in the | Annualized returns: | 3.27% | 42.69 | 42.11 | 42.11 | N/A | Y | Not applicable | Juchao Website(www.cninfo.com.cn) |
| ations Co., Ltd. | deposit management category as the principal | 3.27% | (Notice No.: 2020-037) | |||||||||||||
| Chengdu Branch of China CITIC Bank Co., Ltd. | Bank | Principal-guaranteed with floating income | 5,000.00 | Idle raised funds | June 15, 2020 | September 14, 2020 | This product is a structured deposit product, which refers to deposits embedded in financial derivative products linking to the fluctuation of interest rates, exchange rates, indexes and other financial market objects or to the credit status of an entity, so that depositors can obtain corresponding benefits on the basis of bearing certain risks. | Annualized returns: 3.30% | 3.30% | 41.71 | 41.14 | 41.14 | N/A | Y | Not applicable | Juchao Website(www.cninfo.com.cn) (Notice No.: 2020-040) |
| Hefei Branch of Bank of East Asia (China) Limited | Bank | Principal-guaranteed with floating income | 5,000.00 | Idle own funds | June 12, 2020 | September 11, 2020 | Deposits embedded in financial derivatives absorbed by the Bank are linked to exchange rate fluctuations so that depositors can obtain | Annualized returns: 3.50% | 3.50% | 44.24 | 44.24 | 44.24 | N/A | Y | Not applicable | Juchao Website(www.cninfo.com.cn) (Notice No.: 2020-039) |
| corresponding returns on the basis of certain risks. | ||||||||||||||||
| Mianyang Economic Development Zone branch of Bank of China Limited | Bank | Guaranteed capital and minimum return | 3,500.00 | Idle own funds | April 22, 2020 | May 25, 2020 | Funds raised by this product are operated uniformly by the Bank of China, and business management is carried out in accordance with the principle of separating basic deposits from derivative transactions. The principal part raised is included in the unified operation and management of the internal funds of the Bank of China, and included in the payment scope of deposit reserves and deposit insurance premiums. Products embedded derivatives are partly invested in derivatives markets | Annualized returns: 3.40% | 3.40% | 10.91 | 10.76 | 10.76 | N/A | Y | Not applicable | Juchao Website(www.cninfo.com.cn) (Notice No.: 2020-026) |
| such as exchange rates, interest rates, commodities, and indices, and the final product performance is linked to derivatives. During the investment period, Bank of China uses the income method to value the embedded option price of this structured deposit. | ||||||||||||||||
| Hefei Branch of Bank of East Asia (China) Limited | Bank | Principal-guaranteed with floating income | 5,000.00 | Idle own funds | July 15, 2020 | October 16, 2020 | Deposits embedded in financial derivatives absorbed by the Bank are linked to exchange rate fluctuations so that depositors can obtain corresponding returns on the basis of certain risks. | Annualized returns: 3.40% | 3.40% | 43.91 | 43.92 | 43.92 | N/A | Y | Not applicable | Juchao Website(www.cninfo.com.cn) (Notice No.: 2020-045) |
| Chengdu Branch of Industrial Bank Co., Ltd. | Bank | Principal-guaranteed with floating income | 15,000.00 | Idle raised funds | September 15, 2020 | December 14, 2020 | Structured deposits refers to the business products that enable depositors to obtain higher returns on the basis of certain risks | Annualized returns: 2.95% | 2.95% | 110.62 | 109.11 | 109.11 | N/A | Y | Not applicable | Juchao Website(www.cninfo.com.cn) (Notice No.: 2020-068) |
| by linking with the fluctuations in interest rates, exchange rates and indexes etc., or with the credit status of an entity | ||||||||||||||
| Total | 93,500.00 | -- | -- | -- | -- | -- | -- | 803.37 | 795.28 | 795.28 | -- | -- | -- | -- |
Entrust financial expected to be unable to recover the principal or impairment might be occurred
□Applicable √ Not applicable
2. Entrust loans
□Applicable √ Not applicable
No entrust loans in the period.(iv) Major contracts for daily operations
□Applicable √ Not applicable
(v) Other material contracts
□Applicable √ Not applicable
No other material contracts in the period
XVIII. Social responsibility(i) Performance of social responsibility: Not applicable(ii) Fulfill the precise social responsibility for poverty alleviationThe Company has no precise social responsibility for poverty alleviation in the period and has no follow-up plan either.(iii) Environment protectionThe listed Company and its subsidiary whether belongs to the key sewage units released from environmental protection department: √ Yes □ No
| Name of company or subsidiary | Major pollutants and name of typical pollutants | Way of discharge | number of discharge outlets | Distribution of discharge outlets | concentration of discharge | Pollutants discharge standards enacted | Total discharge volume | Total discharge volume certified | Discharge beyond the standards |
| Sichuan Changhong Air-conditioner Co., Ltd. | VOC (volatile organic compounds) | Organized emissions | 3 | Two outlets at J05 workshop and one outlet at J07 workshop, No 128, Sanjiang Road, Economic Development Zone, Mianyang City | ≤22.4 mg/m3 | "Sichuan Province Fixed Pollution Source Air Volatile Organic Compound Emission Standard DB51/2377-2017" Table 3 standard requirements, that is, volatile organic compounds <60mg/m3. | 1880.76kg | Sichuan Changhong Air-conditioner Co., Ltd. has completed the pollutant discharge registration on the national pollutant discharge permit management information platform and obtained the registration receipt in accordance with the "Pollution Permit | Not exceeded |
| Nitrogen oxides | Organized emissions | 2 | Two outlets at J05 workshop (it belongs to the same output as J05VOC), No 128, Sanjiang Road, Economic Development Zone, Mianyang City | ≤13 mg/m3 | "Comprehensive Emission Standard of Air Pollutants GB16297-1996" Table 2 secondary standard requirements, that is, the concentration of nitrogen oxides <240 mg/m3 | 248.16kg | Not exceeded |
| Sulfur dioxide | Organized emissions | 2 | Two outlets at J05 workshop (it belongs to the same output as J05VOC), No 128, Sanjiang Road, Economic Development Zone, Mianyang City | ≤13 mg/m3 | "Comprehensive Emission Standard of Air Pollutants GB16297-1996" Table 2 requirements, that is, the SO2<120 mg/m3 | 911.05kg | Management Measures (Trial)", the "Fixed Pollution Source Pollution Permit Classification Management Directory (2019 Edition)", etc., there is no requirement for the company's total emissions in the pollution discharge registration | Not exceeded |
| Particulate matter | Organized emissions | 4 | Two outlets at J05 workshop and one outlet at J07 workshop, No 128, Sanjiang Road, Economic Development Zone, Mianyang City | ＜20mg/m3 | "Comprehensive Emission Standard of Air Pollutants GB16297-1996" Table 2 secondary standard requirements, that is, the concentration of particulate matter <120 mg/m3 | 5767.56kg | Not exceeded |
Note 1: In 2020, Bureau of Ecology and Environment of Mianyang issued the MHF [2020] No. 38 "Notice on Supplementing the List of Key Pollutant Discharge Units in 2020", and includedChanghong Air-conditioner in the list of key soil pollution supervision.Note 2: The company's wholly-owned subsidiary Zhongshan Changhong Electric Co., Ltd. (hereinafter referred to as "Zhongshan Changhong") is located in Zhongshan City, GuangdongProvince. In 2019, Zhongshan Changhong was listed in the list of key pollutant emission units for the atmospheric environment in 2019 by the Bureau of Ecology and Environment ofZhongshan. However, the company attached great importance to environmental protection in daily environmental protection and pollution control work, and actively fulfilled corporate socialresponsibility and undertook social obligations. In 2020, Zhongshan Changhong is no longer included in the list of key pollutant discharge units in 2020 by the Bureau of Ecology andEnvironment of Zhongshan.
1. Construction and operation of pollution prevention facilities
The Company and its subsidiaries actively respond to the national ecological civilization construction plan, andactively participate in national environmental protection works in line with the purpose of actively fulfilling itscorporate social responsibility. In recent years, The Company and its subsidiaries have actively explored theintroduction of advanced management concepts and methods, and invested a large amount of money in thepurchase of pollution control equipment and facilities. And realized emission reduction by scientific technicalmethods by the investment in installation of activated carbon adsorption treatment equipment, welding dustpurifier facilities etc. At the same time, in order to ensure the effective operation of the management equipmentand facilities, the Company and its subsidiaries have adopted such management measures as setting up specialpersonnel to manage and maintain the operation of the equipment and facilities, formulating proper rules foroperation and maintenance of the equipment and facilities, emergency disposal regulations, supervision andassessment mechanism, allocating special maintenance funds and so on, so as to ensure the effective operation ofthe governing facilities in a full round, delivering its best to protect and improve the ecological environmentaround the enterprise.
2. Environment impact assessment and other required environment protection administrative license forconstruction projectsThe Company and its subsidiaries earnestly implement the Environmental Protection Law, the EnvironmentalImpact Assessment Law and the Regulations on Environmental Protection Management of Construction Projects,consciously abide by environmental protection laws and regulations, industry requirements and governmentregulations. For new, renovated and expanded projects, the Company and its subsidiaries adhere to the projectenvironmental impact assessment and "three simultaneous" system, fully implement environmental protectionmeasures, act well in environment protection management in respect of project planning, design, construction andoperation, make full use of advanced crafts and technological means to reduce environmental pollution.Environmental impact assessment is carried out synchronously while making the feasibility study for aconstruction project. Third-party professional parties are engaged to analyze the industrial policy, land useplanning, environmental impact and the feasibility of environmental protection measures of the project.Construction will be started only after approved by the competent environmental protection authorities. Duringthe construction, environmental protection requirements are earnestly implemented, environmental protectionfacilities are built synchronously, environmental protection acceptance of the project is arranged in time uponcompletion of the project to ensure that the project meets the acceptance criteria and could be put into officialoperation with all the environmental impact assessment requirements met. During the operation period, theCompany conducts pollution prevention to ensure the normal operation of environmental protection facilities instrict compliance with the relevant environmental impact assessment documents and the reply requirements of thecompetent environmental protection authorities.
3. Emergency plan for environmental emergencies
The Company and its subsidiaries have set up related emergency plans for environmental emergencies. The
Company and its subsidiaries have determined classified warning based on the different extent and severity ofenvironmental impacts that may be caused by the material environmental factors, defined the responsibilities foremergency response, regulated emergency handling procedures, established special team to handle emergenciesand organized regular rehearsal and appraisal of relevant emergency plans, so as to ensure the effectiveness ofthese plans, improve their capability of emergency handling and take precautions against contingent emergencies.
4. Independent plan to monitor environment
The Company and its subsidiaries have established regular monitoring plan for environmental pollutants, set upspecial funds for pollutants monitoring, and engaged third-party authoritative to regularly monitor the operation ofmajor pollution-production links and environmental protection treatment facilities in connection with the majorpollutants produced by the Company and its subsidiaries, to make sure that the Company and its subsidiariescould achieve emission standards in a full round.
5. Other environment information that should be disclosed
According to the Environmental Information Disclosure Measures of Enterprises and Institutions, the Companyand its subsidiaries have realized the disclosure of information relating to environmental impact assessment,project acceptance, pollutants production and discharge, solid waste management, important environmentalfactors, environmental objectives and performance of construction projects.
6. Other environment related information
In order to further realize the scientific and systematic environmental protection work of the Company and itssubsidiaries, the Company and its subsidiaries have established an environmental management system inaccordance with ISO14001 standards, set up an environmental protection organization, acquired environmentalprotection resources, regularly identified, updated and appraised environmental factors, compliance obligations,environmental risks and opportunities, and regularly determined environmental objectives and managementprograms. Through the implementation of management programs and continuous normal improvement, theenvironmental performance of the Company and its subsidiaries has been continuously improved. Through regularinternal audit and management review, as well as the verification and examination of the third parties, theenvironmental management system of the Company and its subsidiaries has been effectively controlled and fullymeets the system management standards and relevant regulations.XIX. Explanation on other significant events
√Applicable □ Not applicable
1. The resolution of the 34
th session of the 9
th
board of directors of the company passed and agreed that thecompany would withdraw in advance the remaining all investments under the "Dongwu-CMB-Donghui No. 135Targeted Asset Management Plan" issued by Soochow Securities Co., Ltd., that is, the remaining face value of 50million yuan of principal and the investment income during the holding period corresponding to the principal ofabout 2,816,300 yuan (preliminary calculation) are recovered in advance, and use for the company's daily
operations. After this withdrawal in advance, the entrusted asset principal of the No. 135 targeted assetmanagement plan subscribed by the company is 0 yuan, and the company will subsequently liquidate the targetedasset management plan. Found more on appointed media ―Securities Times‖, ―China Securities Journal‖, ―HongKong Commercial Daily‖ and www.cninfo.com.cn that the Company disclosed in the form of announcement(Announcement No. 2019-094) on 2 Jan. 2020.
2. The resolutions of the 36
th session of the 9
th Board of Directors, the 19
th session of the 9
thBoard of Supervisors,and the 2019 Annual General Meeting of Shareholders passed the ―Plan for Profit Distribution of the Company in2019‖, and the independent directors of the company made independent approval opinions, taking into account theinterests of shareholders and the long-term development needs of the company, agreed the company to use thetotal share capital of 1,044,597,881 shares on December 31, 2019 as the base, and distribute a cash dividend of 0.5yuan (including tax) per every 10 shares to all shareholders, who distributed cash dividends of 52,229,894.05 yuan(including tax) in total. After this allocation, the company's total share capital remains unchanged, and theremaining undistributed profit of the parent company is 893,677,967.36 yuan, and the remaining undistributedprofits shall be distributed after being carried forward in the subsequent years.On 11 June 2020, the Company released the profit distribution plan for year of 2019 and implemented the plan.Found more on appointed media ―Securities Times‖, ―China Securities Journal‖, ―Hong Kong Commercial Daily‖and www.cninfo.com.cn that the Company disclosed in the form of announcement (Announcement No. 2020-012,No.2020-013, No.2020-028, No.2020-036 and No.2020-038) on 28 March 2020, 8 May 2020, 30 May 2020 and11 June 2020.
3. The 36
th session of the 9
thboard of directors of the company and the 2019 annual general meeting ofshareholders passed and agreed that the company and its subsidiaries would conduct forward foreign exchangefund transactions during the period from July 1, 2020 to June 30, 2021, the business transaction balance does notexceed 650 million U.S. dollars (mainly including U.S. dollars, Australian dollars, Euros, and all other foreignexchanges are converted into U.S. dollars), and the longest delivery period of a single business does not exceed 1year. Found more on appointed media ―Securities Times‖, ―China Securities Journal‖, ―Hong Kong CommercialDaily‖ and www.cninfo.com.cn that the Company disclosed in the form of announcement (Announcement No.2020-012, No.2020-017, and No.2020-036) on 28 March 2020 and 30 May 2020.
4. The 36
th
session of the 9
thboard of directors of the company and the 2019 annual general meeting ofshareholders passed and agreed that the company should apply to China Construction Bank Co., Ltd. HefeiLuyang Sub-branch for a special credit line of up to 700 million yuan in bill pools, with a credit period of 2 years.The types of credits are mainly used for the special business in the bill pools by using the bill pledge method. The
th
session of the 9
thboard of directors of the company and the 2019 annual general meeting of shareholdersapproved and agreed that the company could apply to Ping An Bank Co., Ltd. Hefei Branch for a special creditline of up to 300 million yuan in bill pools, with a credit period of 1 year. The credit types are mainly used forspecial business in the bill pools by adopting the bill pledge method. The 38
th session of the 9
thboard of directorsof the company and the 2019 annual general meeting of shareholders approved and agreed that the company andits subsidiaries could apply to Hefei Economic Development Zone Branch of Huishang Bank Co., Ltd. for a
special credit line of up to 300 million yuan in the bill pools, with a credit period of 1 year. The credit types aremainly used for special business in the bill pools by adopting the bill pledge method, and agreed that the companyand its subsidiaries could apply to the Hefei Branch of China Merchants Bank Co., Ltd. for a special credit line ofup to 300 million yuan in the bill pools, with a credit period of 1 year. The credit types are mainly used for specialbusiness in the bill pools by adopting the bill pledge method. The 42
nd session of the 9
thboard of directors of thecompany and the 4
thExtraordinary General Meeting of Shareholders of 2020 approved and agreed that thecompany and its subsidiaries could apply to Hefei Branch of Hua Xia Bank Co., Ltd. for a special credit line of upto 500 million yuan in the bill pools, agreed that the company and its subsidiaries could apply to Hefei Branch ofHangzhou Bank Co., Ltd. for a special credit line of up to 600 million yuan in the bill pools, agreed that thecompany and its subsidiaries could apply to Hefei Branch of Zheshang Bank Co., Ltd. for a special credit line ofup to 500 million yuan in the bill pools, agreed that the company and its subsidiaries could apply to Anhui Branchof Bank of Communications Co., Ltd. for a special credit line of up to 1000 million yuan in the bill pools. Foundmore on appointed media ―Securities Times‖, ―China Securities Journal‖, ―Hong Kong Commercial Daily‖ andwww.cninfo.com.cn that the Company disclosed in the form of announcement (Announcement No. 2020-012,No.2020-020, No.2020-022, No.2020-025, No.2020-029, No.2020-030, No.2020-036, No.2020-069 andNo.2020-083) on 28 March 2020, 18 April 2020, 8 May 2020, 30 May 2020, 19 September 2020 and 13 October2020.
5. Being deliberated and approved by 39
th session of 9
thBOD, the Company agreed to invest approximately 20.21million yuan on the expansion technology improvement for production line of the export refrigerators, withpurpose of improving the production capacity, technical standards and product competitiveness. Found more onappointed media ―Securities Times‖, ―China Securities Journal‖, ―Hong Kong Commercial Daily‖ andwww.cninfo.com.cn that the Company disclosed in the form of announcement (Announcement No.2020-041) on30 June 2020.
6. The deliberations and approvals at the 33
rd
session of the 9
th board of directors, the 17
th session of the 9
th
boardof supervisors, and the first extraordinary general meeting of shareholders in 2020 agreed that the company wouldclose the "intelligent R&D project", and the project's surplus raised funds of 125,084,220.44 yuan as of November30, 2019 (including the income of wealth management and the interest income from deposits of 47,970,805.20yuan) and the interest settled thereafter are used to permanently supplement the company's liquid funds. Thespecific amount is subject to the actual amount after deducting the reserved contract balance and the warrantymoney from the special account on the day the funds are transferred out. At the same time, the total amount of114,368,326.60 yuan in the balance of the contract to be paid and warranty money will continue to be kept in thefund-raising account and paid according to the contract. Found more on appointed media ―Securities Times‖,―China Securities Journal‖, ―Hong Kong Commercial Daily‖ and www.cninfo.com.cn that the Company disclosedin the form of announcement (Announcement No. 2019-088, No.2019-089, No.2019-091 and No.2020-002) on 26Dec. 2019 and 11 Jan. 2020.
7. In reporting period, the Company and its subordinate controlling subsidiary, have accumulated received variouskinds of government subsidies as 50,907,539.53 Yuan. Found more on appointed media ―Securities Times‖,
―China Securities Journal‖, ―Hong Kong Commercial Daily‖ and www.cninfo.com.cn that the Company disclosedin the form of announcement (Announcement No.2020-043) on 2 July 2020.
8. On July 23, 2020, the company issued the Reminder Announcement on Operating Conditions. Found more onappointed media ―Securities Times‖, ―China Securities Journal‖, ―Hong Kong Commercial Daily‖ andwww.cninfo.com.cn that the Company disclosed in the form of announcement (Announcement No.2020-046).
9. After review and approval by the 40
th session of the 9
th
BOD, the 21
st
meeting of the 9
thboard of supervisors,and the 3
rdextraordinary general meeting of shareholders in 2020, it was agreed that the company would use itsown funds to repurchase part of the company's domestic listed foreign shares (B shares) by means of centralizedbidding transactions. Found more on appointed media ―Securities Times‖, ―China Securities Journal‖, ―HongKong Commercial Daily‖ and www.cninfo.com.cn that the Company disclosed in the form of announcement(Announcement No. 2020-047, No.2020-048, No.2020-049 and No.2020-063) on 28 July 2020, 19 August 2020At present, the share repurchase plan is in the process of implementation, see this report for details "4. Progress inthe implementation of share repurchase" in "1. Share changes" in "(1) Share changes" in "Section VI Changes inShares and Particular about Shareholders".
10. The resolutions of the 41
st meeting of the 9
th Board of Directors, the 22
nd meeting of the 9
thBoard ofSupervisors passed and agreed the company to implement the new financial instrument standards and change therelevant accounting policies in accordance with the relevant regulations and requirements of the Ministry ofFinance. Found more on appointed media ―Securities Times‖, ―China Securities Journal‖, ―Hong KongCommercial Daily‖ and www.cninfo.com.cn that the Company disclosed in the form of announcement(Announcement No. 2020-056, No.2020-057 and No.2020-059) on 15 August 2020
11. During the period from December 9 to December 10, 2020 and from December 22 to December 23, 2020, thecompany's stock trading had two consecutive trading days with a cumulative increase deviation of the closingprice of more than 20%. According to the relevant regulations of the Shenzhen Stock Exchange, the companyissued the Announcement on Abnormal Fluctuations in Stock Trading. Found more on appointed media―Securities Times‖, ―China Securities Journal‖, ―Hong Kong Commercial Daily‖ and www.cninfo.com.cn that theCompany disclosed in the form of announcement (Announcement No. 2020-096 and No.2020-106) on 11December 2020 and 24 December 2020.
12. The resolutions of the 33
rd meeting of the 9
th Board of Directors, the 17
th meeting of the 9
thBoard ofSupervisors, and the 1
stExtraordinary General Meeting of 2020 passed and agreed the company to provide creditguarantees of 3670 million yuan in total for its wholly-owned and controlled subsidiaries in 2020, the guaranteeperiod is one year for the newly increased guarantee amount for the current year and the amount of renewalinsurance during Current Year. Found more on appointed media ―Securities Times‖, ―China Securities Journal‖,―Hong Kong Commercial Daily‖ and www.cninfo.com.cn that the Company disclosed in the form ofannouncement (Announcement No. 2019-088, No. 2019-089, No. 2019-090 and No.2020-002) on 26 December2019 and 11 January 2020.The resolutions of the 4
th meeting of the 10
th
Board of Directors, the 3
rd meeting of the 10
thBoard of Supervisors,
and the 5
th
Extraordinary General Meeting of 2020 passed and agreed the company to provide credit guarantees of3,649,203,800 yuan in total for its wholly-owned and controlled subsidiaries in 2021, the guarantee period is oneyear for the newly increased guarantee amount in 2021 and the amount of renewal insurance in 2021. Found moreon appointed media ―Securities Times‖, ―China Securities Journal‖, ―Hong Kong Commercial Daily‖ andwww.cninfo.com.cn that the Company disclosed in the form of announcement (Announcement No. 2019-088, No.2020-097, No. 2020-098, No. 2020-101 and No.2020-107) on 12 December 2020 and 30 December 2020.
13. The resolutions of the 4
th session of the 10
thBoard of Directors passed and agreed to appointed Mr. ZhongMing as president of the Company, and his term of office is the same as the 10
thBOD‘s. Found more on appointedmedia ―Securities Times‖, ―China Securities Journal‖, ―Hong Kong Commercial Daily‖ and www.cninfo.com.cnthat the Company disclosed in the form of announcement (Announcement No.2020-097) on 12 December 2020.
14. After review and approval by the company‘s fourth meeting of the tenth board of directors, the third meetingof the tenth board of supervisors, and the fifth extraordinary general meeting of shareholders in 2020, it wasagreed that the company and its subsidiaries would use their own idle funds not exceeding 1.2 billion yuan (Thequota can be used on a rolling basis) to invest in the high-security, good-liquidity, low-risk, and stable bankfinancial products of product maturity within one year, the authorization period is valid within one year from thedate of approval by the company‘s general meeting of shareholders. Found more on appointed media ―SecuritiesTimes‖, ―China Securities Journal‖, ―Hong Kong Commercial Daily‖ and www.cninfo.com.cn that the Companydisclosed in the form of announcement (Announcement No.2020-097, No.2020-098, No.2020-102 andNo.2020-107) on 12 December 2020 and 30 December 2020
15. After review and approval by the fourth meeting of the company‘s tenth board of directors, it was agreed thatthe company would invest about 46.57 million yuan in the technical transformation of the refrigerator (freezer)production line at the Hefei base to meet future market demand and production capacity enhancementrequirements, so as to enhance the company‘s product competitiveness, and realize cost reduction and efficiencyimprovement. Found more on appointed media ―Securities Times‖, ―China Securities Journal‖, ―Hong KongCommercial Daily‖ and www.cninfo.com.cn that the Company disclosed in the form of announcement(Announcement No.2020-097) on 12 December 2020.
16. After review and approval by the fourth meeting of the 10th board of directors of the company, it was agreedthat the company would invest 13,879,900 yuan to upgrade and rebuild the drainage pipe network of the freezerpark and living quarters of the Hefei base to improve the drainage system capacity of the park, so as to guaranteethe demand for the capacity of the drainage network due to the increase in production capacity and personnel.Found more on appointed media ―Securities Times‖, ―China Securities Journal‖, ―Hong Kong Commercial Daily‖and www.cninfo.com.cn that the Company disclosed in the form of announcement (Announcement No.2020-097)on 12 December 2020.
17. After review and approval by the fourth meeting of the tenth board of directors of the company, it was agreedthat the company would apply for a new line of credit to some commercial banks with a pledge of no more than150 million yuan of time deposits for the financing of export accounts receivable and bank acceptance bills,working capital loans, with a term of one year. Found more on appointed media ―Securities Times‖, ―China
Securities Journal‖, ―Hong Kong Commercial Daily‖ and www.cninfo.com.cn that the Company disclosed in theform of announcement (Announcement No.2020-097 and No.2020-103) on 12 December 2020.XX. Major event of the subsidiary
√Applicable □ Not applicable
1. The deliberations and approvals at the 36
th session of the 9
thboard of directors of the company agreed that thecompany and its wholly-owned subsidiary Sichuan Changhong Air-conditioner Co., Ltd. (hereinafter referred toas "Changhong Air-conditioner") would jointly increase capital of 150 million yuan to Zhongshan Changhongwith their own funds according to the existing shareholding ratio, of which the Company increased capital of135 million yuan, and Changhong Air conditioning increased capital of 15 million yuan. After the capital increasewas completed, the registered capital of Zhongshan Changhong has increased to 334 million yuan, and theshareholding ratio of the company and Changhong Air-conditioner in Zhongshan Changhong remains unchangedat 90% and 10%. Found more on appointed media ―Securities Times‖, ―China Securities Journal‖, ―Hong KongCommercial Daily‖ and www.cninfo.com.cn that the Company disclosed in the form of announcement(Announcement No.2020-012 and No.2020-018) on 28 Mar. 2020
2. The deliberations and approvals at the 36
th session of the 9
th board of directors and the 19
th session of the 9
th
board of supervisors of the company agreed that in 2020, the company would increase credit guarantee forZhongke Meiling, with the amount not exceeding 30 million yuan. After the approval of the guarantee quota, theguarantee quota provided by the company to Zhongke Meiling in 2020 will accumulate to 180 million yuan.Found more on appointed media ―Securities Times‖, ―China Securities Journal‖, ―Hong Kong Commercial Daily‖and www.cninfo.com.cn that the Company disclosed in the form of announcement (Announcement No.2020-012,No.2020-013 and No.2020-036) on 28 Mar. 2020 and 30 May 2020.
3. The deliberations and approvals at the 37
th session of the 9
thboard of directors of the company agreed that thecompany would transfer the 0.18% equity of Ridian Technology held by Wu Changyuan with its own funds(initial investment amount of 150,000 yuan), and the equity transfer price was based on Ridian Technology‘saudited net assets of 155,582,873.62 yuan as of December 31, 2019, the equity transfer price was determined to be280,049.17 yuan. After the equity transfer, the company holds 99.036% of Ridian Technology's equity, and naturalperson shareholder Hu Zhiheng holds 0.964% of Ridian Technology's equity. Found more on appointed media―Securities Times‖, ―China Securities Journal‖, ―Hong Kong Commercial Daily‖ and www.cninfo.com.cn that theCompany disclosed in the form of announcement (Announcement No.2020-022) on 18 April 2020.
4. The deliberations and approvals at the 37
th session of the 9
thboard of directors of the company agreed that thecompany would transfer 100% equity of 7 subsidiaries held by the company‘s wholly-owned subsidiary HefeiMeiling Electric Appliances Marketing Co., Ltd., including Chengdu Meiling Electric Appliances Marketing Co.,Ltd., Fuzhou Meiling Electric Appliances Marketing Co., Ltd., and so on, to Hefei Meiling Group HoldingsLimited, which is a wholly-owned subsidiary of the company, the equity transfer price is based on the audited netasset value of 7 marketing companies as of December 31, 2019, and it‘s determined that the total equity transfercost is 7 yuan. Found more on appointed media ―Securities Times‖, ―China Securities Journal‖, ―Hong Kong
Commercial Daily‖ and www.cninfo.com.cn that the Company disclosed in the form of announcement(Announcement No.2020-022) on 18 April 2020.
5. After review and approval by the 42nd meeting of the ninth board of directors of the company, it was agreedthat the company would transfer 100% of the equity of three subsidiaries, including Taiyuan Meiling ElectricAppliances Marketing Co., Ltd., Tianjin Meiling Electric Appliances Marketing Co., Ltd., and Zhengzhou MeilingElectric Appliances Marketing Co., Ltd., held by Hefei Meiling Electric Appliances Marketing Co., Ltd., awholly-owned subsidiary of the company, to Hefei Meiling Group Holding Co., Ltd., a wholly-owned subsidiaryof the company, the price of the equity transfer was based on the audited net asset value of the three marketingcompanies as of December 31, 2019, it‘s determined that the total equity transfer price was 2,724,594.32 yuan. Itwas agreed that Meiling Group, a wholly-owned subsidiary of the company, would merge its wholly-ownedsubsidiaries Chengdu Meiling Electric Appliances Marketing Co., Ltd., Fuzhou Meiling Electric AppliancesMarketing Co., Ltd., Hangzhou Meiling Electric Appliances Marketing Co., Ltd., and other 7 subsidiaries. Foundmore on appointed media ―Securities Times‖, ―China Securities Journal‖, ―Hong Kong Commercial Daily‖ andwww.cninfo.com.cn that the Company disclosed in the form of announcement (Announcement No. 2020-069) on19 September 2020.
6. The deliberations and approvals at the 39
th session of the 9
thboard of directors of the company agreed thatChanghong Air-conditioner would apply to the Agricultural Bank of China Co., Ltd. Mianyang FuchengSub-branch for bank acceptance drafts not exceeding 100 million yuan with the pledge of time deposit certificates,the time limit was one year; and agreed that Changhong Air-conditioner could apply to Bohai Bank Co., Ltd.Chengdu Branch for bank acceptance drafts not exceeding 100 million yuan with the pledge of time depositcertificates, the time limit was one year; and agreed that Changhong Air-conditioner could apply to LiangliSub-branch of Chengdu Rural Commercial Bank Co., Ltd. for bank acceptance drafts not exceeding 100 millionyuan with the pledge of time deposit certificates, and the time limit was one year. Found more on appointed media―Securities Times‖, ―China Securities Journal‖, ―Hong Kong Commercial Daily‖ and www.cninfo.com.cn that theCompany disclosed in the form of announcement (Announcement No.2020-041 and No.2020-042) on 30 June2020
7. On September 29, 2020, the company received the capital share and profit distribution amount totaling27,824,000 yuan from Sichuan Hongyun New Generation Information Technology Venture Capital FundPartnership (Limited Partnership) (hereinafter referred to as "Hongyun Fund"), a shareholding company, amongthem, the recovered capital share was 2.46 million yuan; the profit distribution amount was 25,364,400 yuan,accounting for 44.94% of the company‘s most recent audited net profit attributable to shareholders of the listedcompany. Found more on appointed media ―Securities Times‖, ―China Securities Journal‖, ―Hong KongCommercial Daily‖ and www.cninfo.com.cn that the Company disclosed in the form of announcement(Announcement No. 2020-082) on 10 October 2020.
8. Deliberated and approved by the fourth meeting of the tenth board of directors of the company, it was agreedthat the company and Ningbo Hongling Enterprise Management Partnership (Limited Partnership) (theshareholding platform of the core management team of household appliances industry, hereinafter referred to asthe "partnership") would jointly invest and establish Hefei Changhong Meiling Household Appliances Co., Ltd.,in which the Company contributes 35 million yuan in cash, accounting for 70% of the registered capital, and thepartnership invests 15 million yuan in cash, accounting for 30% of the registered capital, so as to adapt to externalmarket competition, achieve the transformation and upgrading of the company‘s household appliances industry,and promote the rapid and sound development of the household appliances industry. Found more on appointedmedia ―Securities Times‖, ―China Securities Journal‖, ―Hong Kong Commercial Daily‖ and www.cninfo.com.cnthat the Company disclosed in the form of announcement (Announcement No. 2020-097) on 12 December 2020.
Section VI. Changes in shares and particular about shareholdersI. Changes in shares(i) Changes in shares
In Share
| Before the Change | Increase/Decrease in the Change (+, -) | After the Change | |||||||
| Amount | Proportion | New shares issued | Bonus shares | Capitalization of public reserve | Others | Subtotal | Amount | Proportion | |
| I. Restricted shares | 10,553,770 | 1.01% | 0 | 0 | 0 | -81,094 | -81,094 | 10,472,676 | 1.00% |
| 1. State-owned shares | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| 2. State-owned legal person‘s shares | 915,987 | 0.09% | 0 | 0 | 0 | 737,748 | 737,748 | 1,653,735 | 0.16% |
| 3. Other domestic shares | 8,370,363 | 0.80% | 0 | 0 | 0 | -818,842 | -818,842 | 7,551,521 | 0.72% |
| Including: Domestic legal person‘s shares | 4,716,077 | 0.45% | 0 | 0 | 0 | -737,748 | -737,748 | 3,978,329 | 0.38% |
| Domestic natural person‘s shares | 3,654,286 | 0.35% | 0 | 0 | 0 | -81,094 | -81,094 | 3,573,192 | 0.34% |
| 4. Foreign shares | 1,267,420 | 0.12% | 0 | 0 | 0 | 0 | 0 | 1,267,420 | 0.12% |
| Including: Foreign legal person‘s shares | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| Foreign natural person‘s shares | 1,267,420 | 0.12% | 0 | 0 | 0 | 0 | 0 | 1,267,420 | 0.12% |
| II. Unrestricted shares | 1,034,044,111 | 98.99% | 0 | 0 | 0 | 81,094 | 81,094 | 1,034,125,205 | 99.00% |
| 1. RMB ordinary shares | 872,447,531 | 83.52% | 0 | 0 | 0 | 81,094 | 81,094 | 872,528,625 | 83.53% |
| 2. Domestically listed foreign shares | 161,596,580 | 15.47% | 0 | 0 | 0 | 0 | 0 | 161,596,580 | 15.47% |
| 3. Overseas listed foreign shares | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| 4. Others | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| III. Total shares | 1,044,597,881 | 100.00% | 0 | 0 | 0 | 0 | 0 | 1,044,597,881 | 100.00% |
1. Reasons for share changed
√ Applicable □ Not applicable
(1) During the reporting period, 737,748 shares of the 1,229,580 shares with sales restrictions of the Companyheld by the original shareholder, the City Insurance Company, were transferred to the People's Insurance Group ofChina Co., Ltd., so the holder of the aforementioned shares was changed to a state-owned legal person.
(2) On August 22, 2019, the director and vice president of the company at the time, Mr. Zhong Ming, reduced hisholding of 78,725 shares of the company through centralized bidding. After this reduction of holding, Mr. Zhong
Ming holds 236,175 shares of the company‘s RMB ordinary shares. According to the relevant regulations of the"Implementation Rules for Shareholding Reduction of Shareholders, Directors, Supervisors, and SeniorManagement of Listed Companies of the Shenzhen Stock Exchange", during the reporting period, the salesrestrictions of 25% of the company‘s shares held by Mr. Zhong Ming, i.e. 59,044 shares, were lifted, and theremaining shares shall continue to be locked up.
(3) The original director of the company, Mr. Teng Guangsheng (Mr. Teng Guangsheng resigned from thecompany on June 2, 2018), the original term of office would expire on September 12, 2020. According to therelevant regulations of the "Implementation Rules for Shareholding Reduction of Shareholders, Directors,Supervisors, and Senior Management of Listed Companies of the Shenzhen Stock Exchange", during thereporting period, the sales restrictions of 25% of the company‘s shares held by Mr. Teng Guangsheng, namely22,050 shares, were lifted, and the remaining shares shall continue to be locked up.
2. Approval of share changed
□ Applicable √ Not applicable
3. Ownership transfer of share changed
√ Applicable □ Not applicable
The 1,229,580 shares of the Company with sales restrictions held by the original shareholder, City InsuranceCompany, were transferred to the People‘s Insurance Group of China and China Life Insurance (Group) Companyrespectively. Among them, the People‘s Insurance Group of China holds 737,748 shares, and China Life Insurance(Group) Company holds 491,832 shares. The equity transfer procedures of aforementioned shares were completedon May 28, 2020 at the Shenzhen branch of China Securities Depository and Clearing Corporation Limited.
4. Progress of shares buy-back
√ Applicable □ Not applicable
The company‘s 40
th meeting of the ninth board of directors, the 21
stmeeting of the ninth board of supervisors, andthe 3rdextraordinary general meeting of shareholders in 2020 held on July 27, 2020 and August 18, 2020deliberated and approved the Proposal on the Repurchase of Part of Domestically Listed Foreign Shares (B Shares)of the Company. Found more on announcement (Notice No.:2020-047, 2020-048, 2020-049, 2020-063, 2020-064,2020-066, 2020-081, 2020-092, 2020-093, 2020-094, 2020-095, 2021-001, 2021-007 and 2021-012) released onappointed media China Securities Journal, Securities Times, Hong Kong Commercial Daily and Juchao Website.The company repurchased its shares for the first time from November 4, 2020 to December 31, 202, andrepurchased 5,552,151 shares of the company by centralized bidding through a dedicated securities account forrepurchase, accounting for 0.5315% of the company‘s total share capital, the highest transaction price wasHK$2.21/share, the lowest transaction price was HK$1.87/share, and the total amount of self-owned funds paidwas HK$11,699,465.27 (excluding transaction fees such as stamp duty and commission).As of the disclosure date of this report, 8,388,888 shares of the company‘ share have been repurchased bycentralized bidding through the special securities account for repurchase, accounting for 0.8031% of the
company‘s total share capital. The highest transaction price was HK$2.21/share, and the lowest transaction pricewas HK$1.87/share, the total amount of self-owned funds paid was HK$17,946,867.40 (excluding transaction feessuch as stamp duty and commission).
5. Implementation progress of the reduction of repurchases shares by centralized bidding
□ Applicable √ Not applicable
6. Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributableto common shareholders of Company in latest year and period
□ Applicable √ Not applicable
7. Other information necessary to disclose for the Company or need to disclosed under requirement from securityregulators
□ Applicable √ Not applicable
(ii) Changes of restricted shares
√ Applicable □ Not applicable
In Share
| Shareholders | Opening shares restricted | Shares released in Period | Restricted Shares Increased In the Period | Ending shares restricted | Restricted reasons | Date for released |
| Zhong Ming | 236,175 | 0 | 59,044 | 177,131 | Share lockup in senior executives | At beginning of 2020, 25% of the total company‘s shares held by Mr. Zhong Ming, namely the 59,044 shares, have been released from restriction |
| Teng Guangsheng | 88,200 | 0 | 22,050 | 66,150 | Share lockup in senior executives | At beginning of 2020, 25% of the total company‘s shares held by Mr. Teng Guangsheng, namely the 22,050 shares, have been released from restriction |
| Total | 324,375 | 0 | 81,094 | 243,281 | -- | -- |
II. Security offering and listing(i) Security offering in reporting period (Not including preferred stock)
□ Applicable √ Not applicable
(ii) Explanation on changes of total shares, shareholders structure and assets & liability structures
□ Applicable √ Not applicable
(iii) Current shares held by internal staffs
□ Applicable √ Not applicable
III. Particulars about shareholder and actual controller of the Company(i) Amount of shareholders of the Company and particulars about shares holding
In Share
| Total shareholders at end of the Period | 100,662 | Total common shareholders at end of last month before annual report disclosed | 82,038 | Total preference shareholders with voting rights recovered at end of reporting period (if applicable) | 0 | Total preference shareholders with voting rights recovered at end of last month before annual report disclosed (if applicable) | 0 | |||||||
| Particulars about shares held above 5% by shareholders or top 10 shares holding | ||||||||||||||
| Full name of Shareholders | Nature of shareholder | Proportion of shares held | Total shareholders at the end of report period | Changes in report period | Amount of restricted shares held | Amount of un-restricted shares held | Number of share pledged/frozen | |||||||
| State of share | Amount | |||||||||||||
| Sichuan Changhong Electric Co., Ltd. | State-owned legal person | 23.79% | 248,457,724 | 0 | 0 | 248,457,724 | - | - | ||||||
| Hefei Industry Investment Holding (Group) Co., Ltd. | State-owned legal person | 4.58% | 47,823,401 | 0 | 0 | 47,823,401 | - | - | ||||||
| CHANGHONG (HK) TRADING LIMITED | Foreign legal person | 2.59% | 27,077,797 | 0 | 0 | 27,077,797 | - | - | ||||||
| CAO SHENGCHUN | Foreign nature person | 1.41% | 14,766,086 | 0 | 0 | 14,766,086 | - | - | ||||||
| Ma Guobin | Domestic nature person | 1.27% | 13,231,054 | +3,358,120 | 0 | 13,231,054 | - | - | ||||||
| Caitong Fund- Ningbo Bank-Haitong Xingtai (Anhui) Emerging Industry Investment Fund (Limited Partnership) | Domestic non-state-owned legal person | 1.03% | 10,733,452 | 0 | 0 | 10,733,452 | - | - | ||||||
| Philip Securities (H.K.) Co., Ltd. | Foreign legal person | 0.60% | 6,296,913 | 0 | 0 | 6,296,913 | - | - | ||||||
| Securities A/C for Repurchase under the name of Changhong Meiling Co., Ltd. | Domestic general legal person | 0.53% | 5,552,151 | +5,552,151 | 0 | 5,552,151 | - | - | ||||||
| Ningbo High-Flyer Quant Investment Management Partenership (Limited Partnership) | Domestic non-state-owned legal person | 0.45% | 4,678,131 | +4,678,131 | 0 | 4,678,131 | - | - | ||||||
| -High-Flyer Quant Qingxi No.5 Private Equity Investment Fund | |||||||||||
| Gu Jie | Domestic nature person | 0.41% | 4,285,700 | +4,285,700 | 0 | 4,285,700 | - | - | |||
| Strategy investors or general legal person becomes top 10 shareholders due to rights issued (if applicable) | Not applicable | ||||||||||
| Explanation on associated relationship among the aforesaid shareholders | Among the above shareholders, CHANGHONG (HK) TRADING LIMITED (hereinafter referred to as Hong Kong Changhong) is the wholly-owned subsidiary of Sichuan Changhong Electric Co., Ltd.; except the shares of the Company directly held by Hong Kong Changhong, 6,296,913 shares of B-stock are also held through Phillip Securities (Hong Kong) Co., Ltd., the foregoing shareholders constitute persons of uniform action. There existed no associated relationship or belong to the concerted actors as specified in the Measures for the Administration of Information Disclosure of Shareholder Equity Changes of Listed Companies among Sichuan Changhong, Hong Kong Changhong and other top 6 shareholders （Excluding Phillip Securities (Hong Kong) Co., Ltd.）; ―Caitong Fund- Ningbo Bank-Haitong Xingtai (Anhui) Emerging Industry Investment Fund (Limited Partnership)‖ refers to the products of Caitong Fund Management Company subscribe for privately placement of 2016; The company neither knows whether there is any association among other shareholders, nor knows whether other shareholders belong to the persons acting in concert that is stipulated in the ―Administrative Measures on Information Disclosure of Changes in Shareholding of Listed Companies‖. | ||||||||||
| Particular about top ten shareholders with un-restrict shares held | |||||||||||
| Shareholders‘ name | Amount of unrestricted shares held at end of Period | Type of shares | |||||||||
| Type | Amount | ||||||||||
| Sichuan Changhong Electric Co., Ltd. | 248,457,724 | RMB ordinary shares | 248,457,724 | ||||||||
| Hefei Industry Investment Holding (Group) Co., Ltd. | 47,823,401 | RMB ordinary shares | 47,823,401 | ||||||||
| CHANGHONG (HK) TRADING LIMITED | 27,077,797 | Domestically listed foreign shares | 27,077,797 | ||||||||
| CAO SHENGCHUN | 14,766,086 | Domestically listed foreign shares | 14,766,086 | ||||||||
| Ma Guobin | 13,231,054 | RMB ordinary shares | 13,231,054 | ||||||||
| Caitong Fund- Ningbo Bank-Haitong Xingtai (Anhui) Emerging Industry Investment Fund (Limited Partnership) | 10,733,452 | RMB ordinary shares | 10,733,452 | ||||||||
| Philip Securities (H.K.) Co., Ltd. | 6,296,913 | Domestically listed foreign shares | 6,296,913 | ||||||||
| Securities A/C for Repurchase under the name of Changhong Meiling Co., Ltd. | 5,552,151 | Domestically listed foreign shares | 5,552,151 | ||||||||
| Ningbo High-Flyer Quant Investment Management Partenership (Limited Partnership) -High-Flyer Quant Qingxi No.5 Private Equity Investment Fund | 4,678,131 | RMB ordinary shares | 4,678,131 | ||||||||
| Gu Jie | 4,285,700 | RMB ordinary shares | 4,285,700 | |
| Expiation on associated relationship or consistent actors within the top 10 un-restrict shareholders and between top 10 un-restrict shareholders and top 10 shareholders | Found more in ―Particulars about shares held above 5% by shareholders or top 10 shares holding‖ | |||
| Explanation on top ten common shareholders involving margin business (if applicable) | As of December 31, 2020, among the top 10 common shareholders, Ma Guobin holds 13,000,000 shares of the Company through customer credit trading secured account of Founder Securities Co., Ltd., and 231,054 shares hold through common securities account, thus 13,231,054 shares of the Company are held in total. The shareholder-Gu Jie holds 4,285,700 shares of the Company through customer credit trading secured account of China Merchants Securities Co., Ltd. | |||
Note 1: At end of the reporting period, the person acting in concert with controlling shareholder Sichuan Changhong--CHANGHONG (HK) TRADING LIMITED, holds B-stock of the Company as 33,374,710 shares, among which, 6,296,913 sharesare held through Philip Securities (H.K.) Co., Ltd. by CHANGHONG (HK) TRADING LIMITEDNote 2: In the above table, "Particulars about shares held above 5% by shareholders or top 10 shares holding" is subject to the data onstock transfer books provided by China Securities Depository and Clearing Corporation Limited Shenzhen Branch
Whether the top ten ordinary shareholders of the company and the top 10 ordinary shareholders of unrestrictedconditions have made the repurchase transactions as agreed during the reporting period.
□Yes √ No
The top ten ordinary shareholders of the company and the top 10 ordinary shareholders of unrestricted conditionshave not made the repurchase transactions as agreed during the reporting period.
(ii) Controlling shareholder of the Company
1. Nature of controlling shareholders: local state-owned holding
2. Type of controlling shareholders: legal person
| Controlling shareholders‘ name | Legal rep./person in charge of unit | Dated founded | Organization code | Main business |
| Sichuan Changhong Electric Co., Ltd. | Zhao Yong | April 8, 1993 | 91510700205412308D | Manufactures, sales and maintenance of household appliance, automotive electrical appliance, Electronic products and spare parts, communications equipment, lighting equipment, household products, computer and other Electronic equipment, specialized equipment of Electronic and Electronic, Electronic machinery and equipment, series products of batteries, Electronic medicine products, Electronic equipment, mechanical equipment , Refrigeration equipment and accessories digital monitoring products, metal products, apparatus and instruments, culture and office machines, culture and education and sports products, kitchen cabinet and gas appliance; house and |
| equipment rental; packing products and technical services; road transportation; storage and discharging convey; R&D, sales and services of integrated circuit and software; consultancy and services of enterprise management; hi-tech project investment and other state-permitted business; development and operation of property; engineering construction for house and buildings; callback and disposal of obsolete appliance and Electronic products; services of Information Technology; consultancy and services of finance; sales, relevant import and export business of Chemical raw materials and products(Not contain dangerous chemicals), building materials, non-ferrous metal, Steel, plastics, packing material, mechanical and electrical equipment, Precious metals, Automotive components, Electronic components, Value added telecommunication service, agent service of telecommunication; designing, manufacturing, releasing and agency for the advertisement; Radio and television program production; Internet information services (excluding investment, finance and securities); audio and video production and services; R&D and design of the drone and unmanned aerial vehicle system as well as the promotion of drone technology; transfer and technical consulting service, production and sales of drone (any projects that needs permission by the law should subject to the approval by relevant authority ) | ||
| Equity controlling and jointly of other foreign/domestic listed company by controlling shareholder in reporting period | 1. Ended as 31 December 2020, Sichuan Changhong directly holds 212,994,972 shares of Changhong Huayi Compressor Co., Ltd. (Stock code: 000404)- a company listed on the main board of the Shenzhen Stock Exchange, accounting for 30.60% of the equity of Changhong Huayi Compressor Co., Ltd. 2. Ended as 31 December 2020, Sichuan Changhong directly and indirectly holds 2,064,236,000 ordinary shares and preferred shares in total of Changhong Jiahua Holdings Co., Ltd. (Stock code: 03991)- a company listed on the main board of Hong Kong Stock Exchange, accounting for 80.30% of the whole ordinary shares and preferred shares under the name of Changhong Jiahua Holdings Co., Ltd. | |
3. Controlling shareholder changes in reporting period
□ Applicable √ Not applicable
Controlling shareholder stays the same in Period.(iii) Actual controller of the Company and its person acting in concert
1. Nature of actual controller: local state-owned assets management
2. Type of actual controller: legal person
| Actual controller | Legal rep./person in charge of unit | Dated founded | Organization code | Main business |
| State-owned Assets Supervision & Administration Commission of Mianyang Municipality | -- | -- | -- | State-owned Assets Supervision & Administration Commission of Mianyang Municipality is entrusted by the same level government, together performs decision-making and management of state-owned asset owners, and is one |
10%organization which executes comprehensivemanagement and supervision on its belongedstate-owned assets.
| organization which executes comprehensive management and supervision on its belonged state-owned assets. | ||
| Equity controlling of other foreign/domestic listed company by actual controller in reporting period | Not applicable | |
3. Changes of actual controller in Period
□ Applicable √ Not applicable
Actual controller stays the same in Period
4. Property rights and the block diagram of the control relationship between the Company and the actual control(ended as 31
stDecember 2020)
5. Actual controller controlling the Company by means of entrust or other assets management
□ Applicable √ Not applicable
(iv) Other legal person’s shareholders with over ten percent shares held
□ Applicable √ Not applicable
(v) Limitation and reducing the holdings of shares of controlling shareholders, actual controllers,restructuring side and other commitment subjects
□ Applicable √ Not applicable
Sichuan Provincial Finance
Department
23.22%
100%
100%
Changhong Meiling Co., Ltd.
Changhong Meiling Co., Ltd.
23.79%
23.79%
3.19%
3.19%
Sichuan Changhong Electronics Holding Group Co., Ltd.
Sichuan Changhong Electronics Holding Group Co., Ltd.Sichuan Changhong Electric Co., Ltd.
Sichuan Changhong Electric Co., Ltd.CHANGHONG (HK) TRADING LIMITED
CHANGHONG (HK) TRADING LIMITED90%
State-owned Assets Supervision &Administration Commission of Mianyang
90%
Municipality
Section VII. Preferred Stock
□ Applicable √ Not applicable
The Company had no preferred stock in the reporting.
Section VIII. Convertible Bonds
□ Applicable √ Not applicable
The Company had no convertible bonds in the Period
Section IX. Particular about Directors, Supervisors, Senior Executives and Employees
I. Changes of shares held by directors, supervisors and senior executive
| Name | Title | Post status | Sex | Age | Office dated from | Office dated ended | Shares held at period-begin (Share) | Amount of shares increase in this period (Share) | Amount of shares decreased in this period (Share) | Other changes (share) | Shares held at period-end (Share) |
| Wu Dinggang | Chairman | Currently in office | M | 48 | July 3, 2014 | October 12, 2023 | 570,500 | 0 | 0 | 0 | 570,500 |
| Zhong Ming | Director, President | Currently in office | M | 48 | December 30, 2013 | October 12, 2023 | 236,175 | 0 | 0 | 0 | 236,175 |
| Yong Fengshan | Director | Currently in office | M | 52 | September 12, 2017 | October 12, 2023 | 0 | 0 | 0 | 0 | 0 |
| Kou Huameng | Director, Deputy president | Currently in office | M | 51 | July 3, 2014 | October 12, 2023 | 0 | 0 | 0 | 0 | 0 |
| Hu Zhaogui | Director, Deputy president | Currently in office | M | 47 | June 21, 2018 | October 12, 2023 | 178,050 | 0 | 0 | 0 | 178,050 |
| Chen Ye | Director | Currently in | M | 56 | October 12, 2020 | October 12, 2023 | 0 | 0 | 0 | 0 | 0 |
| office | |||||||||||
| Hong Yuanjia | Independent director | Currently in office | M | 45 | October 12, 2020 | October 12, 2023 | 0 | 0 | 0 | 0 | 0 |
| Mou Wen | Independent director | Currently in office | F | 54 | October 12, 2020 | October 12, 2023 | 0 | 0 | 0 | 0 | 0 |
| Zhao Gang | Independent director | Currently in office | M | 42 | October 12, 2020 | October 12, 2023 | 0 | 0 | 0 | 0 | 0 |
| Shi Qiang | Director | Office leaving | M | 52 | September 12, 2017 | October 12, 2020 | 0 | 0 | 0 | 0 | 0 |
| Gan Sheng dao | Independent director | Office leaving | M | 54 | July 3, 2014 | October 12, 2020 | 0 | 0 | 0 | 0 | 0 |
| Ren Jia | Independent director | Office leaving | M | 57 | July 3, 2014 | October 12, 2020 | 0 | 0 | 0 | 0 | 0 |
| Lu Yingjin | Independent director | Office leaving | M | 56 | July 3, 2014 | October 12, 2020 | 0 | 0 | 0 | 0 | 0 |
| Shao Min | Chairman of Supervisory | Currently in office | M | 38 | September 12, 2017 | October 12, 2023 | 0 | 0 | 0 | 0 | 0 |
| He Xintan | Supervisor | Currently in office | M | 40 | September 12, 2017 | October 12, 2023 | 0 | 0 | 0 | 0 | 0 |
| Huang Hong | Supervisor | Currently in office | F | 50 | September 12, 2017 | October 12, 2023 | 0 | 0 | 0 | 0 | 0 |
| Ji Ge | Staff supervisor | Currently in office | F | 39 | December 25, 2017 | October 12, 2023 | 0 | 0 | 0 | 0 | 0 |
| Zhu Wenjie | Staff supervisor | Currently in office | M | 33 | April 8, 2015 | October 12, 2023 | 0 | 0 | 0 | 0 | 0 |
| Liu Hongwei | Executive deputy president | Currently in office | M | 57 | June 20, 2011 | October 12, 2023 | 1,689,893 | 0 | 0 | 0 | 1,689,893 |
| Huang Danian | Deputy president | Currently in office | M | 51 | September 12, 2017 | October 12, 2023 | 356,450 | 0 | 0 | 0 | 356,450 |
| Pang Haitao | CFO (person in charge of finance) | Currently in office | M | 45 | December 25, 2017 | October 12, 2023 | 0 | 0 | 0 | 0 | 0 |
| Li Xia | Secretary of the Board | Currently in office | F | 40 | May 22, 2009 | October 12, 2023 | 552,800 | 0 | 0 | 0 | 552,800 |
| Total | -- | -- | -- | -- | -- | -- | 3,583,868 | 0 | 0 | 0 | 3,583,868 |
II. Changes of directors, supervisors and senior executives
√ Applicable □ Not applicable
| Name | Title | Type | Date | Reasons |
| Wu Dinggang | Chairman | Be elected | October 12, 2020 | Approved by Fourth Extraordinary General Meeting of Shareholders of 2020, Mr. Wu Dinggang was elected as the non-independent director of the 10th BOD; Approved by 1st session of 10th BOD, Mr. Wu Dinggang was elected as the chairman of the 10th BOD with service term same as the 10th BOD |
| Zhong Ming | Director | Be elected | October 12, 2020 | Approved by Fourth Extraordinary General Meeting of Shareholders of 2020, Mr. Wu Zhong Ming was elected as the non-independent director of the 10th BOD with service term same as the 10th BOD |
| Deputy president | Appointment | October 12, 2020 | Approved by 1st session of 10th BOD, Mr. Zhing Ming was elected as the deputy president of the 10th BOD with service term same as the 10th BOD | |
| President | Appointment | December 11, 2020 | Approved by 4th session of 10th BOD, Mr. Zhing Ming was elected as the president of the 10th BOD with service term same as the 10th BOD | |
| Yong Fengshan | Director | Be elected | October 12, 2020 | Approved by Fourth Extraordinary General Meeting of Shareholders of 2020, Mr. Yong Fengshan was elected as the non-independent director of the 10th BOD with service term same as the 10th BOD |
| Kou Huameng | Director | Be elected | October 12, 2020 | Approved by Fourth Extraordinary General Meeting of Shareholders of 2020, Mr. Kou Huameng was elected as the non-independent director of the 10th BOD with service term same as the 10th BOD |
| Deputy president | Appointment | October 12, 2020 | Approved by 1st session of 10th BOD, Mr. Kou Huameng was elected as the deputy president, at the same time acting as president, with service term same as the 10th BOD. Approved by 4th session of 10th BOD, Mr. Zhong Ming was elected as the president, Mr. Kou Huameng no longer acts as the president. | |
| Hu Zhaogui | Director | Be elected | October 12, 2020 | Approved by Fourth Extraordinary General Meeting of Shareholders of 2020, Mr. Hu Zhaogui was elected as the non-independent director of the 10th BOD with service term same as the 10th BOD |
| Deputy president | Appointment | October 12, 2020 | Approved by 1st session of 10th BOD, Mr. Hu Zhaogui was elected as the deputy president, with service term same as the 10th BOD | |
| Chen Ye | Director | Be elected | October 12, 2020 | Approved by Fourth Extraordinary General Meeting of Shareholders of 2020, Mr. Chen Ye was elected as the non-independent director of the 10th BOD with service term same as the 10th BOD |
| Hong Yuanjia | Independent director | Be elected | October 12, 2020 | Approved by Fourth Extraordinary General Meeting of Shareholders of 2020, Mr. Hong Yuanjia was elected as the independent director of the 10th BOD with service term same as the 10th BOD |
| Mou Wen | Independent | Be elected | October 12, 2020 | Approved by Fourth Extraordinary General Meeting of Shareholders of |
| director | 2020, Ms. Mou Wen was elected as the independent director of the 10th BOD with service term same as the 10th BOD | |||
| Zhao Gang | Independent director | Be elected | October 12, 2020 | Approved by Fourth Extraordinary General Meeting of Shareholders of 2020, Mr. Zhao Gang was elected as the independent director of the 10th BOD with service term same as the 10th BOD |
| Shi Qiang | Director | Resign after term of office | October 12, 2020 | The company‘s board of directors is re-elected and resigns after the term expires. |
| Gan Sheng dao | Independent director | Resign after term of office | October 12, 2020 | The company‘s board of directors is re-elected and resigns after the term expires. |
| Ren Jia | Independent director | Resign after term of office | October 12, 2020 | The company‘s board of directors is re-elected and resigns after the term expires. |
| Lu Yingjin | Independent director | Resign after term of office | October 12, 2020 | The company‘s board of directors is re-elected and resigns after the term expires. |
| Shao Min | Chairman of Supervisory | Be elected | October 12, 2020 | Approved by Fourth Extraordinary General Meeting of Shareholders of 2020, Mr. Shao Min was elected as the Supervisory of the 10th Board of Supervisors; Approved by 1st session of 10th Board of Supervisors, Mr. Shao Min was elected as the Chairman of Supervisory of the 10th Board of Supervisors with service term same as the 10th Board of Supervisors |
| He Xintan | Supervisor | Be elected | October 12, 2020 | Approved by Fourth Extraordinary General Meeting of Shareholders of 2020, Mr. He Xintan was elected as the Supervisor of the 10th Board of Supervisors with service term same as the 10th Board of Supervisors |
| Huang Hong | Supervisor | Be elected | October 12, 2020 | Approved by Fourth Extraordinary General Meeting of Shareholders of 2020, Ms. Huang Hong was elected as the Supervisor of the 10th Board of Supervisors with service term same as the 10th Board of Supervisors |
| Ji Ge | Staff supervisor | Be elected | September 9, 2020 | After democratic election by 4th session of the 8th employee representative meeting, Ms. Ji Ge was elected as the employee supervisor of the 10th board of supervisors. |
| Zhu Wenjie | Staff supervisor | Be elected | September 9, 2020 | After democratic election by 4th session of the 8th employee representative meeting, Mr. Zhu Wenjie was elected as the employee supervisor of the 10th board of supervisors. |
| Liu Hongwei | Executive deputy president | Appointment | October 12, 2020 | Approved by 1st session of 10th BOD, Mr. Liu Hongwei was appointed as the executive deputy president, with service term same as the 10th BOD |
| Huang Danian | Deputy president | Appointment | October 12, 2020 | Approved by 1st session of 10th BOD, Mr. Huang Danian was appointed as the deputy president, with service term same as the 10th BOD |
| Pang Haitao | CFO (person in charge of finance) | Appointment | October 12, 2020 | Approved by 1st session of 10th BOD, Mr. Pang Haitao was appointed as the CFO (person in charge of finance), with service term same as the 10th BOD |
| Li Xia | Secretary of the Board | Appointment | October 12, 2020 | Approved by 1st session of 10th BOD, Ms. Li Xia was appointed as the secretary of the Board, with service term same as the 10th BOD |
III. Post-holding(i) Professional background, major working experience and present main responsibilities in Company ofdirectors, supervisors and senior executive at the present
1. Wu Dinggang, male, the Han nationality from Suining, Sichuan Province, was born in March 1973, Member ofCPC, owns bachelor degree, graduate from Tianjin University of Commerce China (Tianjin University ofCommerce now), major in refrigeration equipment and cryogenic technique. He served successively as GM ofSuining Sale Branch and Chengdu Sales Branch of Sichuan Changhong Electric Co., LTD, director of Sichuanand Chongqing Marketing Management Department of Sichuan Changhong Electric Co., LTD, deputy GM ofChanghong Electronics (China) Marketing Co., GM of market planning center of Changhong Multimedia Industry,director and GM of Le-Jia-Yi Chain Management Co., Ltd., Zhongke Meiling Cryogenic Technology Co., Ltd.director and GM of Sichuan Changong Air Conditioner Co., Ltd and deputy president, president, deputy chairmanand Party Secretary of the Company. Currently he serves as director, vice GM of Sichuan Changhong Electric Co.,Ltd., chairman of the Company; Chairman of Zhongshan Changhong Electric Co., LTD; Chairman of SichuanChanghong Air-conditioner Co., Ltd. and Chairman of Zhongke Meiling Cryogenic Technology Co., Ltd.
2. Zhong Ming, male, the Han nationality from Meishan, Sichuan Province, was born in November 1972, memberof CPC, a senior engineer, doctoral degree, EMBA degree from University of Science and Technology of China,PhD degree in Engineering Thermophysics. He successively served as deputy director of research institution ofSichuan Changhong Air-conditioner Co., Ltd., deputy GM of Sichuan Changhong Air-conditioner Co., Ltd. andtechnical director of household appliance group of Sichuan Changhong Electric Co., LTD. He serves as directorPresident and Party Secretary of the Company currently and Chairman of Hefei Meiling Wulian Technology Co.,Ltd.
3. Yong Fengshan, male, Han nationality, was born in Dingyuan, Anhui in June 1968, a member of the CommunistParty of China, a senior accountant, and a master degree holder. He ever took the posts of the director of financedepartment of Hefei Cable Factory, the director of finance division and the deputy chief accountant of HefeiMeiling Co., Ltd., the director of Hefei Department Store Co., Ltd., the deputy general manager and chiefaccountant of Hefei Meiling Group Holding Co., Ltd., the secretary of the party committee and the president ofHefei Industrial Investment Holdings Co., Ltd., the president of CAS (Hefei) Institute of Technology InnovationCo., Ltd., the vice president of Whirlpool (China) Co., Ltd., the president of Hefei Venture Capital Guidance FundCo., Ltd. , and the director of the Company.
4. Kou Huameng, male, the Han nationality from Yanting, Sichuan Province, was born in February 1970, Memberof CPC, master degree candidate, EMBA graduate from UESTC. He served successively as deputy director ofproduction office of Sichuan Changhong Electric Co., LTD, director of Guangxi Marketing managementCommittee, director of Fujian-Jiangxi Marketing Management, General Manager of Changhong AudiovisualCompany and director and GM of Guangdong Changhong Digital Technology Co., Ltd.; Sichuan ChanghongElectric Co., Ltd, director of development management department of Sichuan Changhong Electric Co., Ltd., and
director of Changhong Huayi Compressor Co., Ltd.; now he serves as director and deputy president of theCompany.
5. Hu Zhaogui, male, the Han nationality, born in Feixi Hefei in October 1974, a member of the Communist Partyof China, holds a master‘s degree, graduated from Chongqing University as a master of business administration.He has served successively as the head of marketing and sales department stationed abroad of Hefei Meiling Co.,Ltd., assistant president and general manager of the freezer and washing machine business division, and generalmanager of the domestic marketing division. He is currently the director and vice president of the Company andthe general manager of Sichuan Changhong Air Conditioner Co., Ltd., a subsidiary of the Company.
6. Chen Ye, male, Han nationality, born in November 1963, Changzhou, Jiangsu, senior engineer, holds a masterdegree, graduated from HKUST Business School with a master's degree in business administration. He onceserved as an engineer of the 46 physical and chemical analysis center of the electronics department, the deputygeneral manager of Tianjin Xinxing Electronics Co., Ltd., the chairman and president of Sichuan Top SoftwareCo., Ltd., the general manager of Beijing Hongli Nike Technology Co., Ltd., and the manager of the planningtechnology department of Sichuan Changhong Electric Co., Ltd. Minister and other positions. He is currently thedeputy director of the Asset Management Department of Sichuan Changhong Electric Co., Ltd., the generalmanager of Sichuan Changhong Innovation Investment Co., Ltd., the general manager of Chengdu ChanghongTechnology Co., Ltd., and the director of the Company.
7. Hong Yuanjia, male, Han nationality, born in February 1975, Shantou, Guangdong, holds a master degree,graduated from Shanghai University of Finance and Economics majoring in international business management,and is Fudan University MPAcc (Master of Accounting), CPA, International Accountant (AIA), intermediateaccountant, and intermediate economist. He once served as the foreign currency payable supervisor andinvestment supervisor of China Eastern Airlines Co., Ltd., the deputy manager of the financial department of theShanghai Representative Office of Sancheng Hongji (Hong Kong) Co., Ltd., the accounting manager of GeneralElectric Lighting Co., Ltd., the accounting manager of General Electric Industrial Supply Co., Ltd., and ChiefFinancial Officer of Lingji Electronics (General Electrical Industry System Power Supply). He is currently theChief Financial Officer of Asia Pacific Region of Yiluo Technology (Shanghai) Co., Ltd. and an independentdirector of the Company.
8. Mou Wen, female, Han nationality, born in September 1965, Hengshan, Hunan, holds a master's degree, anaccountant, and holds a master's degree in business management from Sichuan University. She previously servedas a lecturer in the School of Business Administration of Sichuan University, an Associate Professor ofAccounting in the School of Business Administration of Sichuan University, an independent director of TibetMineral Development Co., Ltd., Sichuan Jinlu Group Co., Ltd., Huayi Compressor Co., Ltd., Jinhui Liquor Co.,Ltd., Sichuan Teway Food Co., Ltd., and Hebei Baoli Engineering Equipment Group Co., Ltd., a member ofInvestment Decision Advisory Committee of Sichuan Chuanjiao Road and Bridge Co., Ltd., and financialconsultant of Sichuan Daka Electric Co., Ltd., etc. She is currently Associate Professor and Master Supervisor ofBusiness School of Sichuan University, and an independent director of Chengdu Guibao Science and TechnologyCo., Ltd., Mianyang Fulin Precision Machinery Co., Ltd., Sichuan Joyou Digital Technology Co., Ltd., Tibet
Mineral Development Co., Ltd., and an independent director of the Company.
9. Zhao Gang, male, Han nationality, born in April 1977, Peixian, Jiangsu Province, is a member of theCommunist Party of China, holds a doctoral degree, graduated from the University of Science and Technology ofChina majoring in power engineering and thermophysics. He once served as a post doctorate and an associateprofessor in the Department of Mechanics and Mechanical Engineering of the University of Science andTechnology of China, a professor of orbital systems in the Department of Electronic Science and Technology, aspecial researcher for foreigners in the Japan Society for the Promotion of Science, School of Engineering,Kyushu University, Japan, and a senior research scholar in the Department of Mechanical Engineering at theUniversity of Washington. He is currently the executive director, professor and doctoral supervisor of theDepartment of Electronic Science and Technology of the University of Science and Technology of China, thedeputy director of the Anhui Life Resources Conservation and Artificial Organ Engineering Technology ResearchCenter, a part-time professor of the Department of Mechanical Engineering of the University of Washington, andan independent director of the Company.
10. Shi Qiang, male, Han nationality, was born in July 1968, a member of the Communist Party of China, earned abachelor‘s degree in underwater sound electronic engineering from Southeast University, and is an engineer. Hesuccessively served as the office secretary of Changhong Company, director of quality management division, thedirector of goods and material department, liaison office of overseas marketing, the director of asset managementdepartment, deputy minister, minister, director of the office of the board of directors; Director of SichuanChanghong New Energy Technology Co., Ltd.; Director of Sichuan Changhong Power Source Co., Ltd.; Directorof Changhong Meiling Co., Ltd. He has ceased to serve as a director of the company since the expiration of histerm on October 12, 2020.
11. Gan Shengdao, male, the Han nationality from Tianchang, Anhui Province, was born in March 1967, memberof China Democratic National Construction Association, member of the Central Committee of the ChinaDemocratic National Construction Association, new century outstanding talent of the Ministry of Education, adoctoral candidate and Doctor of Economic. He served successively as teaching assistant, lecturer and associateprofessor in Department of National Economic Management of Sichuan University, the associate professor andprofessor in Department of Business Administration of Sichuan University, professor, doctoral supervisor, andpost-doctoral co-supervisor of Business School of Sichuan University. An independent director of LiangshanRural Commercial Bank Co., Ltd., an independent director of Chengdu Rainbow Electric (Group) Co., Ltd., anindependent director of Yibin Wuliangye Co., Ltd., an independent director of Sinoseal Holding Co.Ltd., anindependent director of Sichuan Yahua Industrial Group Co., Ltd., and an independent director of the Company.He has ceased to serve as an independent director of the company since the expiration of his term on October 12,2020.
12. Ren Jia, male, Han nationality, was born in Nantong, Jiangsu in July 1963, a master degree holder, andgraduated from the Department of Materials Science and Engineering of Tsinghua University. He ever took theposts of the assistant general manager of Beijing Building Materials Imp. & Exp. Co., Ltd., the department deputymanager of Jiangsu Overseas Group Co., Ltd., the department deputy manager and assistant general manager of
Jiangsu Economic and Trade Corporation, the general manager of Import and Export Company of ZhejiangXiangyang Group, the director and general manager of Nanjing Shenlu Textile & Apparel Co., Ltd., the deputygeneral manager of Guangzhou Anyka Microelectronics Co., Ltd., the deputy general manager of ShanghaiMultimedia Valley Investment Co., Ltd., independent director of Kingnet Co., Ltd., the partner of Shanghai HedaEnterprise Management Partnership (limited partnership), vice president of SIMIC Group Co., Ltd., andindependent director of Changhong Meiling Co., Ltd. He has ceased to serve as an independent director of thecompany since the expiration of his term on October 12, 2020.
13. Lu Yingjin, male, the Han nationality, was born in October 1964, Member of CPC, a doctoral candidate,Doctor of Management Science and Engineering of the UESTC. He served successively as Assistant Engineer ofShenli Field Drilling Technical Company, lecturer of Staff Education and Training Center of South-WestPetroleum Bureau, and independent director of Changhong Meiling Co., Ltd. He teaches in UESTC since2002.And he has been a visiting scholar in the department of computer science at the University of Kentucky inthe United States. . He has ceased to serve as an independent director of the company since the expiration of histerm on October 12, 2020.
14. Shao Min, male, Han nationality, was born in Linyi, Shandong in March 1983, and earned a bachelor‘s degreein accounting major from Xi‘an Jiaotong University. He joined in work in July 2004, and ever served as thefinance manager of the branch office of Sichuan Changhong Electric Co., Ltd., the financial director of financedepartment, the project manager of asset management department, the director of asset management department,and the director of asset operation department of Sichuan Changhong Electric Co., Ltd. He currently serves as thedeputy director of asset management department of Sichuan Changhong Electric Co., Ltd., director of ChanghongHuayi Compressor Co., Ltd., and the chairman of the Board of Supervisors of the Company.
15. He Xintan, male, Han nationality, was born in Xiayi, Henan in April 1980, a member of the Communist Partyof China, an economist, and earned a master‘s degree in management science and engineering from Xi‘anJiaotong University. He joined in work in July 2002, and successively took the posts of the operationsmanagement director of operation management department and the manager of general management office ofSichuan Changhong Electric Co., Ltd. Currently he serves as the deputy director of development and managementdepartment of Sichuan Changhong Electric Co., Ltd., and a director of Changhong Huayi Compressor Co., Ltd.,and a supervisor of the Company.
16. Huang Hong, female, Han nationality, was born in Shehong, Sichuan in June 1970, a member of theCommunist Party of China, a master degree holder, graduated from the University of Glasgow as a MBA, and asenior auditor. She joined in work in July 1992, and ever served as the financial director of finance department,the audit manager, marketing audit director, and audit chief of auditing department of Sichuan Changhong ElectricCo., Ltd. He currently serves as the deputy director of auditing department and the deputy director of labor unionaudit committee of Sichuan Changhong Electric Co., Ltd., and a supervisor of the Company.
17. Ji Ge, female, Han nationality, was born in Nanyang, Henan Province in January 1982, a member of theCommunist Party of China, and earned a bachelor‘s degree in law from Hunan University and a master‘s degree
from Anhui University. She joined Hefei Meiling Co., Ltd. in July 2005 and once served as the legal specialist oflegal department, the sponsor of legal affairs, and the intellectual property director of the legal department of theCompany. She currently serves as staff supervisor of the Company, the director of the legal department of theCompany, director of office of Party Committee, member of commission for Discipline Inspection, and director ofDiscipline Inspection office
18. Zhu Wenjie, male, the Han nationality from Hefei, Anhui Province, member of Communist Party of China,born in January 1988, a master degree，graduated from University of science and technology of China as a MBA.He started to work in Hefei Meiling Co., Ltd. in July 2010 after graduation, served as an accountant for bigcustomer accounting in financial management department of Hefei Meiling Co., Ltd., securities affairs assistant atthe office of secretary of the board, and director of securities affairs, and currently serves as the representative ofthe Company's securities affairs, director of securities affairs at the office of secretary of the board, and staffsupervisor of the Company.
19. Liu Hongwei, Male, Chinese American, bored in May 1963, Doctor of Applied Mechanics from LehighUniversity, graduate from department of mechanical engineering, Tsinghua University. He served successively inKulicke and Soffa Industries, Pennsylvania; Tessera Technology Corporation, Califonia; serves technical andmanagement post in Intel Corporation in Silicon Velleg. He joints the Hefei Meiling Co., Ltd. in 2007, now heserves as executive deputy president of the Company.
20. Huang Danian, male, Han nationality, was born in Huaining, Anhui in November 1969, a member of theCommunist Party of China, an engineer, and a master degree holder. He once served as the logistics director andthe deputy general manager, the director of the human resources department, the director of the comprehensiveplanning department, the director of the enterprise management department, and the assistant to the generalmanager of Sales Company of Hefei Meiling Co., Ltd. He is now the vice president of Hefei Meiling Co., Ltd.
21. Pang Haitao, male, Han nationality, was born in Qionghai, Hainan in May 1975, a member of the CommunistParty of China, a senior accountant, a senior political engineer, and a bachelor degree holder, and earned theEMBA degree from Jiangxi University of Finance and Economics. He used to be a member of the financedepartment, the director of related transactions and the director of capital operations of Sichuan ChanghongElectric Co., Ltd., the chief of finance office of Guangdong Changhong Electronics Co., Ltd., the director ofgeneral ledger, the head of general management office, and the head of general ledger management office of thefinance department of Sichuan Changhong Electric Co., Ltd., the deputy general manager and chief financialofficer of Sichuan Changhong Development Co., Ltd., the deputy general manager and chief accountant of HuayiCompressor Co., Ltd. Currently he is the chief financial officer (person in charge of finance) of the Company.
22. Li Xia, female, the Han nationality from Qionglai, Sichuan Province, was born in October 1980, Member ofCPC and Intermediate Accountant with Master Degree. She graduated from Accounting Department of SichuanUniversity Business and Management School. She ever was Project Manager in Financing & Acquisition Officeof Asset Management Department and Business Executive in Board Office of Sichuan Changhong Electronic Co.,Ltd. she took the posts of Deputy GM and Financial Supervisor of Sichuan Changhong Innovation Investment Co.,
Ltd., and chairman of supervisory committee of Zhongke Meiling Cryogenic Technology Co., Ltd. She is theSecretary of the Board, deputy secretary of the Party and secretary of discipline inspection commission of theCompany recently.(ii) Post-holding in shareholder’s unit
√ Applicable □ Not applicable
| Name | Shareholder‘s unit | Title | Start date of office term | End date of office term | Drawing remuneration and allowance from shareholder‘s unit (Y/N) | |
| Wu Dinggang | Sichuan Changhong Electric Co., Ltd. | Director | 2020.06.30 | 2023.06.29 | N | |
| Deputy GM | 2019.01.12 | 2023.06.29 | Y | |||
| Yong Fengshan | Hefei Industry Investment Holding (Group) Co., Ltd. | Party Secretary, Chairman | 2015.02.13 | - | Y | |
| Chen Ye | Sichuan Changhong Electric Co., Ltd. | Deputy director of assets management department | 2020.07 | - | Y | |
| Shao Min | Sichuan Changhong Electric Co., Ltd. | Director of assets management department | 2019.02.01 | - | Y | |
| He Xintan | Sichuan Changhong Electric Co., Ltd. | Director of development and management department | 2019.02.01 | - | Y | |
| Huang Hong | Sichuan Changhong Electronics Holding Group Co., Ltd. | Deputy director of auditing department | 2011.09.16 | - | Y | |
| Post-holding in shareholder‘s unit | N/A | |||||
(iii) Post-holding in other unit
√ Applicable □ Not applicable
| Name | Other unit | Title | Start date of office term | End date of office term | Drawing remuneration and allowance from other unit (Y/N) |
| Wu Dinggang | Sichuan Zhiyijia Network Technology Co., Ltd. | Director | 2015.01 | - | N |
| Zhongshan Changhong Electric Co., Ltd. | Chairman | 2015.11.26 | - | N | |
| Sichuan Changhong Air Conditioning Co., Ltd. | Chairman | 2017.09.11 | - | N | |
| Zhongke Meiling Cryogenic Technology Co., | Chairman | 2017.08.21 | 2021.08.26 | N |
| Ltd. | |||||
| Lejiayi Chain Management Co., Ltd. | Chairman | 2019.04.25 | - | N | |
| Sichuan Kuaiyidian Electrical Service Chain Co., Ltd. | Chairman | 2019.06.10 | - | N | |
| Yong Fengshan | Whirlpoor (China) Co., Ltd. | Director | 2015.05.18 | 2022.09.18 | N |
| Vice Chairman | 2015.07.10 | N | |||
| Hefei Venture Capital Guidance Fund Co., Ltd. | Chairman | 2015.04.17 | - | N | |
| CAS (Hefei) Technical Innovation Engineering Institute Co., Ltd. | Chairman | 2015.04.17 | - | N | |
| Hefei State-owned Assets Holding Co., Ltd. | Chairman | 2015.04 | - | N | |
| Hefei Industry Investment Holding Co., Ltd. | Chairman, GM | 2014.09 | - | N | |
| Anhui Integrated Circuit Industry Capital Co., Ltd. | Chairman | 2017.05 | - | N | |
| Jianghuai Automobile Co., Ltd. | Director | 2018.07.20 | 2021.07.19 | N | |
| Industrial Investment (HK) Ltd | Director | 2017.04 | - | N | |
| Hefei Smart Energy Innovation Platform Co., Ltd. | Director | 2017.06 | - | N | |
| Kou Huameng | Changhong Huayi Compressor Co., Ltd. | Director | 2015.04.16 | 2020.12.22 | N |
| Hu Zhaogui | Lejiayi Chain Management Co., Ltd. | Director | 2018.01.23 | - | N |
| Sichuan Zhiyijia Network Technology Co., Ltd. | Director | 2019.07.25 | - | N | |
| Hongyuan Ground Energy Heat Tech. Co., Ltd. | Vice Chairman | 2017.12.27 | - | N | |
| Sichuan Tianyou Guigu Technology Co., Ltd. | Director | 2018.01.16 | - | N | |
| Chengdu Guigu Environmental Tech. Co., Ltd. | Director | 2018.06.30 | - | N | |
| Chen Ye | Sichuan Changhong Innovation Investment Co., Ltd. | GM | 2017.02.21 | - | N |
| Chengdu Changhong Technology Co., Ltd. | GM | 2019.10 | - | N | |
| Shao Min | Changhong Huayi Compressor Co., Ltd. | Director | 2021.02.25 | 2021.05.17 | N |
| Hong Yuanjia | Yiluo Technology (Shanghai) Co., Ltd. | Chief Financial Officer in Asia Pacific | 2014.06 | - | Y |
| Mou Wen | Business School of Sichuan University | Associate professor, master tutor | 1995.02 | - | Y |
| Chengdu Sibao Technology Co., Ltd. | Independent director | 2017.05.05 | 2021.12.07 | Y | |
| Mianyang Fulin Precision Machinery Co., Ltd. | Independent director | 2017.06.23 | 2023.06.30 | Y |
| Sichuan Junyi Digital Technology Co., Ltd. | Independent director | 2019.01.03 | 2022.01.02 | Y | ||
| Tibet Mining Development Co., Ltd. | Independent director | 2021.03.09 | 2024.03.08 | Y | ||
| Zhao Gang | University of Science and Technology of China | Department Executive Director, Professor, Doctoral Supervisor | 2011.04 | - | Y | |
| He Xintan | Changhong Huayi Compressor Co., Ltd. | Director | 2018.01.05 | 2021.05.17 | N | |
| Pang Haitao | Hefei Xingmei Asset Management Co., Ltd. | Director | 2018.02.05 | - | N | |
| Post-holding in other unit | N/A | |||||
(iv) Punishment of securities regulatory authority in recent three years to the company’s current andoutgoing directors, supervisors and senior management during the reporting period
□ Applicable √ Not applicable
IV. Remuneration of directors, supervisors and senior executives(i) Decision-making, determine basis and actually payment of remuneration for directors, supervisors andsenior executives
1. Procedure for deciding remunerations of directors, supervisors and senior managementImplemented in line with laws, regulations and relevant rules of ―Company Law‖, ―Article of Association‖ and―Enforcement Regulation of Remuneration and Evaluation Committee of the Board‖, including:
(1) Allowance plan of independent directors are implemented after deliberated in the Board and approved inShareholders‘ General Meeting. Other directors and non-staff supervisors except independent directors arereceived no remuneration from the Company.
(2) Remuneration of senior executives are deliberated and approved by the Board according to remunerationevaluation plan together with opinions of Remuneration and Evaluation Committee.The remuneration appraisal and payment for directors and senior executive of the Company for Current Year willdisclose in the Annual Report after review without objection from Remuneration & Appraisal Committee of theBoard and submit to the BOD for Current Year.
2. Bases on which remunerations of directors, supervisors and senior management are decidedThe Company conducted the performance examination on the task of directors, supervisors and senior executivesaccording to the HR management policy, wages of directors, supervisors and senior executives are decided bytheir performance and evaluations check by the Company. All wages are performing by the evaluation resultsaccording to the only evaluation standard that carried by the Company.
3. Actual payment of remunerations of directors, supervisors and senior managementAllowance of the independent directors are paid by the standards approved in Annual Shareholders‘ GeneralMeeting, other director, who serves as senior executive at the same time, and non-staff supervisors except
independent directors did not received remuneration from the Company; remunerations for senior executives ofthe Company are paid strictly by the unify remuneration valuation mechanism of the Company.Directors, supervisors and senior executives of the Company has 18 in total up to 31 December 2020, actually 12person receiving remuneration from the Company, 2 staff supervisors are received their remuneration by actualpositions (non-supervisor post); furthermore, 3 independent directors are received the allowance monthly from theCompany; the Company will pay remuneration to senior executives in line with the performance appraisal bymonthly, quarterly and annual.During the reporting period, the Company has established the executive compensation and performancemanagement program for the senior management of 2020 in accordance with the main scope, the responsibilities,the importance of the management positions of the senior management, and the compensation level of otherrelevant company and position, the program includes but not limited to the company's key performance indicator(KPI) and performance evaluation criteria, procedures and major evaluation system; the major programs andsystems of the reward and punishment; review the performance of duties of the company's senior management andconduct the annual performance appraisal.At the end of Current Year, the Remuneration and Appraisal Committee combined the work report andself-evaluation of the senior management in 2020, followed the performance evaluation criteria and procedures,and evaluated the Key Performance Indicator (KPI) of the senior management in 2020; and other relevantindicators of performance evaluation; proposed the remuneration amount and performance appraisal approach ofthe senior management based on the job performance evaluation results and the remuneration policy, and reportedto the Board for approval.(ii) Remuneration for directors, supervisors and senior executives in reporting period
In 10 thousand Yuan
| Name | Title | Sex | Age | Post status | Total remuneration obtained from the Company (before taxes) | Whether remuneration obtained from related party of the Company |
| Wu Dinggang | Chairman | M | 48 | Currently in office | 0 | Y |
| Zhong Ming | Director, President | M | 48 | Currently in office | 32.05 | N |
| Yong Fengshan | Director | M | 52 | Currently in office | 0 | Y |
| Kou Huameng | Director, Deputy president | M | 51 | Currently in office | 41.19 | N |
| Hu Zhaogui | Director, Deputy president | M | 47 | Currently in office | 43.78 | N |
| Chen Ye | Director | M | 56 | Currently in office | 0 | Y |
| Hong Yuanjia | Independent director | M | 45 | Currently in office | 2.59 | N |
| Mou Wen | Independent director | F | 54 | Currently in office | 2.59 | N |
| Zhao Gang | Independent director | M | 42 | Currently in office | 2.59 | N |
| Shi Qiang | Director | M | 52 | Office leaving | 0 | Y |
| Gan Sheng dao | Independent director | M | 54 | Office leaving | 9.31 | N |
| Ren Jia | Independent director | M | 57 | Office leaving | 9.31 | N |
| Lu Yingjin | Independent director | M | 56 | Office leaving | 9.31 | N |
| Shao Min | Chairman of Supervisory | M | 38 | Currently in office | 0 | Y |
| He Xintan | Supervisor | M | 40 | Currently in office | 0 | Y |
| Huang Hong | Supervisor | F | 50 | Currently in office | 0 | Y |
| Ji Ge | Staff supervisor | F | 39 | Currently in office | 26.50 | N |
| Zhu Wenjie | Staff supervisor | M | 33 | Currently in office | 24.37 | N |
| Liu Hongwei | Executive deputy president | M | 57 | Currently in office | 47.46 | N |
| Huang Danian | Deputy president | M | 51 | Currently in office | 32.70 | N |
| Pang Haitao | CFO (person in charge of finance) | M | 45 | Currently in office | 34.07 | N |
| Li Xia | Secretary of the Board | F | 40 | Currently in office | 29.06 | N |
| Total | -- | -- | -- | -- | 346.88 | -- |
(iii) Equity incentive authorized for director, supervisor and senior executive in reporting period
□ Applicable √ Not applicable
V. Staff of the CompanyChanghong Meiling Co., Ltd. and its controlling subsidiaries owned on-job employees of 14,907 people in total.There are 89 people in retired are enjoying expenses paid by the Company.(i) Numbers, professional structure and education background
| On-job employee in parent company (people) | 4,290 | |
| On-job employee in main subsidiary (people) | 10,617 | |
| Total on-job employees (people) | 14,907 | |
| Current total payroll(people) | 14,907 | |
| Number of retired employees with expenses paid by the parent company and main subsidiary (people) | 89 | |
| Professional structure | ||
| Types of professional category | Numbers of professional category (people) | |
| Production staff | 8,718 | |
| Salesman | 3,395 | |
| Technician | 2,255 | |
| Financial staff | 192 | |
| Administration staff | 347 | |
| Total | 14,907 | |
| Education background | |
| Type of education background | Numbers (people) |
| High school and below | 10,382 |
| Junior college | 2,043 |
| Undergraduate | 2,319 |
| Master and above | 163 |
| Total | 14,907 |
(ii) Remuneration policyThe Company formulated human resources and compensation policy conducive to sustainable development ofenterprise according to the provisions of relevant laws and policies promulgated by the state and to the Company'sactual situation.
In order to implement the core values of co-creation and sharing, especially to mobilize the work initiative andenthusiasm of grass-roots employees, based on the overall design idea of ―building a small management & controlplatform, making a refined business platform and a one-line decision-making power‖, further decentralization,effectively activate the team. On this basis, further optimize the incentive plan in 2020; perfected management athree-tiered incentive system, i.e. business performance incentives, value mainline incentives, and event incentive,to improve the business unit‘s operating efficiency and vitality; promoted the development and application of theentire process performance management system, encouraged employees to develop together with the company,and established a direct link between management and business performance; supervisor-level KPIs were linkedwith performance pay; implemented mandatory performance rankings for professional positions, and guidedmanagers and employees to make performance contributions to the company‘s development.
The company established and optimized a unified evaluation mechanism for job promotion, set up positionsystems and promotion channels, implemented the point system evaluation criteria and internal job competitionmechanism, and incorporated annual evaluation and competition into the normalization, and gradually formed theemployment mechanism of ―those who want to do a job have a chance, those who can do a job have a platform,and those who get things done have a status‖. At the same time, the company shaped the corporate culture byproviding various holidays, allowances, condolences, and organizing a variety of leisure activities, sports culturefestival, carnivals, etc. so as to improve the employee satisfaction.
(iii) Training plansTraining plan: The Company has established the Human Resources Strategic Layout, Staff Training ManagementProgram, Credit Management Method, Annual Talent Development & Training Plan and other systems andstandard work flows, set up the staff capacity model, built the knowledge assets management system ofChanghong Meiling and gradually established the growth mechanism by combining the training with theindividual employee development, and combining the qualification promotion with the career development.
1. The mechanism for the selection, education and use of reserve talents gradually presented. In 2020, theCompany established a clear evaluation model for talent standards, on the basis of completing the construction ofthe personnel standard for management and executive level, the talent standards for various professional positionshave been established; Focused on advancing the project for talent construction, and optimized the high-leveltalent development echelons such as reserve leaders, reserve cadres, reserve leaders, and outstanding universitystudents, and so on; establish succession maps for each sequence of talents, and clarify the ability status ofexisting talent teams and future talent succession systems.
2. Talent cultivation is more effective in supporting the development of the company. In order to effectivelysupport the company‘s business policy of ―product leadership, marketing transformation, efficiency improvement,team activation‖, the company released the Human Resources Strategic Plan of Changhong Meiling, on the onehand, improve the training enthusiasm and development capabilities of R & D personnel through the projectpoints-based system, industry exchanges and other activities, on the other hand, aim at the shortcomings of teamand personal ability, and promote accurate training programs, focus on actual working scenes, targeted at the coretalent-oriented push courses, and the training effect gradually appears and the number of talents graduallyincreases.
3. In-depth construction of internal knowledge asset management system, including the two major contents, i.e.construction of ―Meiling School‖ and ―Star here‖ live broadcast. On the one hand, improve the online knowledgeasset management system "Meiling School", comprehensively started and advanced the talent knowledge assetbank of ―Technical School, Management School, Manufacturing School, and Quality School‖; on the other hand,sorted out, on the basis of ―internal trainer certification system‖ and ―bench-marking post knowledge extractionproject‖, launched a new series of live courses, internalize the standardized talent knowledge base and carry outinheritance and influence.(iv) Labor outsourcing
□ Applicable √ Not applicable
Section X. Corporate GovernanceI. Corporate governance of the Company(i) Overview of the corporate governanceIn strict compliance with the Company Law, Securities Law, Governance Principles of Listed Company issued bythe CSRC, the Rules Governing the Listing of Securities on Shenzhen Stock Exchange, and Guidelines forStandardized Operation of Listed Companies, the Company continued to construct and perfect its governancestructure, thereby forming its decision-making, supervision and operation management organization with generalmeeting, the board of directors, the board of supervisors and operation management as the major structure. Thegeneral meeting, board of directors, board of supervisors and operation management of the Company has definiteterms of reference, which can ensure an effective balance, scientific decision-making process and coordinativeoperation, laying firm foundation for making decisions relating to the Company‘s continuous, steady and healthydevelopment.During the reporting period, the actual situation of corporate governance has been in line with the requirements ofrelevant state laws and regulations, and regulatory documents relevant to governance of listed companies issuedby China Securities Regulatory Commission and Shenzhen Stock Exchange.
1. Shareholders and general meeting
The Company standardized the procedures concerning convening, holding and voting of general meeting in strictcompliance with the Articles of Association and Rules of Procedure of General Meeting. All shareholders,especially the minority shareholders, were equally treated to ensure all shareholders shall rank equal status andcan fully exercise their right. During the reporting period, the Company convened shareholders general meetings.In addition to convening general meeting in forms of site conference, the Company offered convenience forshareholders to present general meeting via network voting which was safe, economic and convenient. At thesame time, all the matters submitted to the Company‘s general meeting of shareholders should count the votes ofthe small and medium investors separately, and the results of the vote count should be disclosed timely so as toeffectively protect the rights and interests of small and medium investors and ensure that all shareholders,especially the small and medium shareholders, fully exercise their rights.
2. The Company and controlling shareholders
The Company has independent business and independent management capability. The Company and itscontrolling shareholders owe independent business, personnel, assets, organs and finance. During the period,controlling shareholder abide by requirement of Article of Association and Management System of RelatedTransactions, strictly regulate their behaviors, and no controlling shareholder has directly or indirectly intervenedin the Company‘s policy-making and business activities beyond the general meeting of stockholders, no capital or
assets of the Company occupied by controlling shareholder and its affiliates either.
3. The directors and board of directors
Board Meeting are revoke and open in line with the regulation of Company Law and Article of Associationstrictly, voting and information disclosure procedures appliance with relevant rules.
During the reporting period, the company successfully completed the election of the tenth board of directors. Thecompany's tenth board of directors has nine directors, of which three are independent directors, accounting for onethird of all directors. The number and staff composition of the board of directors meet the requirements of lawsand regulations and the "Articles of Association". All directors of the Company carry out work according to―Rules of Procedure of the Board‖ and ―Independent Director System‖, seriously attend the board of directors andshareholders‘ meeting, exercise obligations by the law and faithfully perform their duties vigorously, positivelyparticipate in trainings of related knowledge open by Shenzhen Stock Exchange and Securities Bureau, and getfamiliar with related laws and regulations. Independent directors follow close to the line of Instruction of SettingUp Independent Directors System in Listed Companies and Independent Director System, take an active part indecision-making of the Company and present a prior approval and independent opinions for related transactionsand major events, bring out the functions of independent directors.In the Period, Board of the Company setting up four special committees including strategy, remuneration andappraisal, audit and nomination, each special committee respectively undertakes the functions of discussion,policy making, supervision and assessment according to the relevant working instruction, and plays important rolein improving the scientific decision-making, decision-making efficiency and quality for the Board.
4. Supervisors and board of supervisors
The Company convened and held meeting of supervisors in strict compliance with the Company Law and Articlesof Association, and the voting and information disclosure procedures of supervisors‘ meeting complied withrelevant requirements.
During the reporting period, the company successfully completed the election of the 10th board of supervisors.The company's tenth board of supervisors has five supervisors, including two employee supervisors. The numberand staff composition of the board of supervisors comply with the requirements of laws and regulations. Oursupervisors can carefully performed their duties including presenting at general meeting and meeting of the boardof directors in accordance to the Rules of Procedures of Board of Supervisors, to exercise supervision over theboard of directors‘ decision-making procedures, subjects to be proposed and our operation in law, to review theperiodic reports prepared by the Board and form written audit opinion in respect thereof and to make effectivesupervision over our material transactions, connected transaction, financial position as well as the legality andcompliance of the performance by directors and senior management and issue independent opinions in respectthereof.
5. The performance appraisal and incentive and constraint mechanism
The Company owes and continues to improve fair-ness and transparency performance appraisal standards andincentive and constraint mechanism for directors, supervisors and senior management, the engagement ofmanagers of the Company is open and transparent and meets the provisions of laws and regulations.
6. The stakeholders
The Company fully respects and maintains the legitimate rights and interests of stakeholders; strengthencommunication and negotiation with each other, realizes the coordination and balance of interests for all partiesincluding society, shareholders, company and staff, pushes forward the sustainable, steady and harmoniousdevelopment of the Company together.
7. The information disclosure and transparency
During the Period, the Company strengthens management of information disclosure, performs the duty ofinformation disclosure in strict accordance with the rules of related laws and regulations, Rules Governing thestock listed on Shenzhen Stock Exchange and ―Management System of Information Disclosure‖, and appointsSecurities Times, China Securities Journal, Hong Kong Commercial Daily and Juchao Website(www.cninfo.com.cn) for information disclosure medial; as for the major un-disclosed inside information,exercise strictly confidential procedures and controlling persons with inside information kowned. The Companyperform duty in aspect of truthfully, accurately, timely and completely discloses information, ensures all investorsobtain the Company‘s information equally and other legal interest.
8. Investor relations management
The Company has seriously done the job of the investor relations management in accordance with therequirements of the "Investor Relations Management System" and "Reception and Promotion system" during thePeriod. Received the consultation and research of the professional institutional investors to the company, checkingrecords for visitors and signing letter of commitment, disclosed the "investor relations activities record" timely.At the same time, communicated with the investors through the "interact easily" platform of Shenzhen StockExchange Investor Relations; seriously received the suggestion and opinions from investors, protect interest of theminority investors, earnestly accepted and replied the calls, faxes, and emails from the investors; cautiously dealtwith the media coverage.(ii) Is there any difference between the actual condition of corporate governance and relevant regulationsabout corporate governance for listed company from CSRC?
□Yes √ No
There are no differences between the actual condition of corporate governance and relevant regulations aboutcorporate governance for listed company from CSRC.II. Independent of the Company relative to controlling shareholders’ in aspect of businesses, personnel,
assets, organization and financeThe Company totally separated in business, personnel, assets, institutions and financial aspects from SichuanChanghong (controlling shareholder), with independent business accounting, responsibility and risk andindependent business operation capability.
1. The business: the Company has an independent and complete business as well as operation ability, withspecialized procurement, production, technology, marketing, management, human resources and otherdepartments. We autonomously manage and operate business on our own. While the management staff areindependent from controlling shareholders and their subordinate enterprises. The Company is free frominterference by controlling shareholders and other affiliates, and there is no dependence on controllingshareholders and other affiliates.
2. The personnel: personnel, labor, personnel and salary of the Company are completely independent. President,vice president, person in charge of finance, Secretary of the board of directors and other senior managementpersonnel are working in the Company and receive salary, not receiving any remuneration and holding position ofany except directors, supervisors in the controlling shareholder and its subordinate enterprises.
3. Assets: the Company owns places of production and management independent from its controlling shareholder,owns complete assets structure, independent production system, auxiliary production systems and supportingfacilities, land use rights, ownership of houses and other assets, and independent purchase and sales system. Noassets occupied by controlling shareholders and other affiliates.
4. Institutions: the Company established organization completely independent from controlling shareholders; thegeneral meeting, board of directors, board of supervisors and the internal organization are capable of takingindependent action, with no controlling shareholder intervention of corporation's decision-making behavior. TheCompany strengthen the power restriction system via general meeting, the Board, supervisory committee,independent directors and vary committees, formulated an effective structure for corporate governance.
5. Financial aspects: the Company set up independent financial management, and independent accounting systemand financial management system, independently setting up banking account and tax declaration.III. Horizontal competition
□ Applicable √ Not applicable
IV. In the report period, the Company held annual shareholders’ general meeting and extraordinaryshareholders’ general meeting
1. Annual Shareholders’ General Meeting in the report period
| Session of meeting | Type | Ratio of investor participation | Date | Date of disclosure | Index of disclosure |
| First Extraordinary General Meeting of 2020 | Extraordinary General Meeting | 31.79% | January 10, 2020 | January 11, 2020 | Juchao Website—(http://www.cninfo.com.cn) ―Resolution Notice of First extraordinary general meeting of 2020‖ No.: 2020-002 |
| Second Extraordinary General Meeting of 2020 | Extraordinary General Meeting | 32.32% | February 11, 2020 | February 12, 2020 | Juchao Website—(http://www.cninfo.com.cn) ―Resolution Notice of Second extraordinary general meeting of 2020‖ No.: 2020-009 |
| AGM of 2019 | AGM | 32.6543% | May 29, 2020 | May 30, 2020 | Juchao Website—(http://www.cninfo.com.cn) ―Resolution of the AGM of 2020‖ No.: 2020-036) |
| Third Extraordinary General Meeting of 2020 | Extraordinary General Meeting | 33.5057% | August 18, 2020 | August 19, 2020 | Juchao Website—(http://www.cninfo.com.cn) ―Resolution Notice of Third extraordinary general meeting of 2020‖ No.: 2020-063 |
| Fourth Extraordinary General Meeting of 2020 | Extraordinary General Meeting | 32.4924% | October 12, 2020 | October 13, 2020 | Juchao Website—(http://www.cninfo.com.cn) ―Resolution Notice of Fourth extraordinary general meeting of 2020‖ No.: 2020-083 |
| Fifth Extraordinary General Meeting of 2020 | Extraordinary General Meeting | 33.6596% | December 29, 2020 | December 30, 2020 | Juchao Website—(http://www.cninfo.com.cn) ―Resolution Notice of Fifth extraordinary general meeting of 2020‖ No.: 2020-107 |
2. Request for extraordinary general meeting by preferred stockholders whose voting rights restore
□ Applicable √ Not applicable
V. Responsibility performance of independent directors(i)The attending of independent directors to Board meetings and general meeting
| The attending of independent directors | |||||||
| Independent director | Times of Board meeting supposed to attend in the report period | Times of present in person | Times of attending by communication | Times of entrusted presence | Times of Absence | Absent the Meeting for the second time in a row (Y/N) | Times of attending the shareholder general meeting |
| Gan Shengdao | 9 | 1 | 8 | 0 | 0 | N | 0 |
| Ren Jia | 9 | 0 | 9 | 0 | 0 | N | 4 |
| Lu Yingjin | 9 | 1 | 8 | 0 | 0 | N | 0 |
| Hong Yuanjia | 4 | 1 | 3 | 0 | 0 | N | 0 |
| Mou Wen | 4 | 1 | 3 | 0 | 0 | N | 0 |
| Zhao Gang | 4 | 1 | 3 | 0 | 0 | N | 1 |
Explanation of absent the Board Meeting for the second time in a row:
No independent directors absent the Board Meeting for the second time in a row.(ii) Objection for relevant events from independent directorsWhether independent directors come up with objection about company‘s relevant matters or not
□ Yes √ No
Independent directors has no objections for relevant events in reporting period(iii) Other explanation about responsibility performance of independent directorsWhether the opinions from independent directors have been adopted or not
√ Yes □ No
Explanation on recommendations adopted or un-adopted:
During the report period, the independent directors of the 9
thsession of the Board, Mr. Gan Shengdao, Mr. Ren Jiaand Mr. Lu Yingjin, the independent directors of the 10
th
session of the Board, Mr. Hong Yuanjia, Ms. Mou Wenand Mr.Zhao Gang, faithfully performed their duties, and prudently, earnestly and diligently exercised their rightsas independent directors in strict accordance with ―Corporation Law‖, ―Securities Law‖, ―Guidance on theEstablishment of Independent Director System in Listed Companies‖ of China Securities Regulatory Commission,―Stock listing Rules‖ of Shenzhen Stock Exchange, ―Articles of Association‖, ―Independent Director System‖,―Annual Report Working System of Independent Director‖, and rules of related laws and regulations, notinfluenced by the major shareholders, actual controllers, or other units and individuals having a stake in theCompany, actively attended the general meeting of shareholders and board meeting, made independent opinionson related matters, gave reasonable suggestions to the production and management and the business development
of the Company, gave full play to the role as independent directors, and maintained the legitimate rights andinterests of shareholders of the Company, especially the medium and small shareholders.In reporting period, independent directors propose opinions on the Board, and details of suggestions as:
| Dated | Items | Agree/against | Disclosure index |
| January 20, 2020 | Independent opinion on relevant proposal of the 35th session of 9th BOD | Agreed | Juchao Website(www.cninfo.com.cn) |
| March 26, 2020 | Independent opinion on relevant proposal of the 36th session of 9th BOD | Agreed | Juchao Website(www.cninfo.com.cn) |
| April 17, 2020 | Independent opinion on relevant proposal of the 37th session of 9th BOD | Agreed | Juchao Website(www.cninfo.com.cn) |
| May 7, 2020 | Independent opinion on the Company‘s application to some commercial banks for special credit line of bill pool | Agreed | Juchao Website(www.cninfo.com.cn) |
| June 29, 2020 | Independent opinion on subsidiaries applying to some commercial banks for issuing the bank acceptance bill by pledging the time certificates of deposit | Agreed | Juchao Website(www.cninfo.com.cn) |
| July 27, 2020 | Independent opinion on the plan of repurchasing part of the domestic listed foreign shares of the Company (B-share) | Agreed | Juchao Website(www.cninfo.com.cn) |
| August 14, 2020 | Independent opinion on relevant proposal of the 41st session of 9th BOD | Agreed | Juchao Website(www.cninfo.com.cn) |
| September 18, 2020 | Independent opinion on relevant proposal of the 42nd session of 9th BOD | Agreed | Juchao Website(www.cninfo.com.cn) |
| October 12, 2020 | 见Independent opinion on Appointment of the Senior management of the Company | Agreed | Juchao Website(www.cninfo.com.cn) |
| October 19, 2020 | Independent opinion on the Forward Foreign Exchange Transaction Already carried out in the third quarter of 2020 | Agreed | Juchao Website(www.cninfo.com.cn) |
| October 27, 2020 | Independent opinion on the guarantee provided by controlling shareholder to apply to financial institutions for comprehensive credit granting and related transactions | Agreed | Juchao Website(www.cninfo.com.cn) |
| December 11, 2020 | Independent opinion on relevant proposal of the 4th session of 10th BOD | Agreed | Juchao Website(www.cninfo.com.cn) |
VI. Responsibility performance of subordinate special committee of the Board in report period(i) Responsibility performance for strategy committee of the BoardIn accordance with the requirements of the relevant laws and regulations of the Company Law and the ListingRules of the Shenzhen Stock Exchange, the Strategic Committee under the Board of Directors of the company has
strictly followed the provisions of the Articles of Association and the Working Rules of the Strategic Committeeof the Board of Directors, strictly performed their duties, and offered proposals and carried out positive guides forthe company's strategic development and foreign investments, the specific situation is as follows:
1. On 16 March 2020, the Strategic Committee convened the 10
th meeting of the Strategy Committee of the 9
th
Board of Directors, deliberated and approved the two proposals as development plans for year of 2020 andProposal on increasing capital of Zhongshan Changhong Electric Co., Ltd.
(1) According to the Company‘s medium and long term development strategy, the committee members combinedwith the macroeconomic situation and industry status and summarized the annual work situation in 2019,discussed and established the Company‘s business thoughts and business plans in 2020, and strived to achieve the2020 business goals.
(2) In accordance with the company‘s overseas development strategy and the business development needs of itswholly-owned subsidiary Zhongshan Changhong, in order to supplement the working capital of ZhongshanChanghong and quickly reduce its asset-liability ratio, it‘s agreed that the company and its wholly-ownedsubsidiary Changhong Air Conditioning would jointly increase capital of 150 million yuan to ZhongshanChanghong with their own funds based on the existing shareholding ratio, of which the Company‘s capitalincrease is 135 million yuan, and the capital increase of Changhong Air-conditioning is 15 million yuan. After thecapital increase is completed, the registered capital of Zhongshan Changhong will be increased to 334 millionyuan. The shareholding ratio of the company and Changhong Air Conditioning in Zhongshan Changhong remainsunchanged at 90% and 10% respectively. It‘s agreed to submit the proposal to the company's board of directors fordeliberation.
2. On December 9, 2020, the strategy committee convened the first meeting of the strategy committee of the tenthboard of directors, which reviewed and approved the Proposal on the Investment and Establishment of HefeiChanghong Meiling Household Appliances Co., Ltd.According to the company‘s business development needs and industrial planning, in order to ensure the realizationof the company‘s household appliances industry (including kitchen and bathroom appliances and small homeappliances) in the 14th Five-Year strategic development goals, seize the growth opportunities of consumptionupgrade and brand focus in the household appliances industry, activate the vitality of the household appliancesindustry team, and establish a long-term incentive and restraint mechanism, it‘s submitted to the board of directorsto approve the company and Ningbo Hongling Enterprise Management Partnership (Limited Partnership)(shareholding platform of household appliances industry‘s core management team, hereinafter referred to as"partnership") to jointly invest and establish Hefei Changhong Meiling Household Appliances Co., Ltd. (tentativename, and it‘s finally subject to the approval of the Industrial and Commercial Bureau) so as to adapt to externalmarket competition, realize the transformation and upgrading of the company's household appliances industry, andpromote the rapid and sound development of the household appliances industry. The registered capital of the newcompany is 50 million yuan, of which 35 million yuan is invested by the company in cash, accounting for 70% ofthe registered capital, and the partnership enterprise invests 15 million yuan in cash, accounting for 30% of theregistered capital. It‘s agreed to submit the proposal to the company's board of directors for deliberation.
3. On February 25, 2021, the strategy committee convened the second meeting of the strategy committee of the
tenth board of directors, and reviewed and approved the Proposal on the Investment and Establishment of aWholly-owned Subsidiary by the Holding Subsidiary Zhongke Meiling Cryogenics Company Limited .According to the strategic plan of the company and its holding subsidiary Zhongke Meiling Cryogenics CompanyLimited (hereinafter referred to as "Zhongke Meiling"), in order to further expand the business scope of ZhongkeMeiling in the biomedical field, deeply develop the life science sector business, and improve the corecompetitiveness of Zhongke Meiling, it‘s submitted the board of directors to approve Zhongke Meiling'sinvestment of 10 million yuan to establish a wholly-owned subsidiary Anhui Linghe Medical Devices Co., Ltd.(tentative name, it‘s subject to the approved name of industry and commerce) to engage in medical device R&D,production and sales. It‘s agreed to submit the proposal to the company's board of directors for deliberation.
4. On March 19, 2021, the strategy committee held the third meeting of the strategy committee of the tenth boardof directors, and reviewed and approved the Proposal on the Company's 2021 Development Plan and Proposal onthe Company's Shareholders Return Planning in the Next Three Years (2021-2023).
(1) According to the company‘s medium and long-term development strategy, each committee summarized theoverall situation of the company‘s work in 2020 based on the company‘s macro-environmental situation and thecurrent status of the industry, discussed and established the company‘s 2021 business ideas, business plans, etc.,further ensured the realization of the company‘s long-term development strategy goals.
(2) In order to further improve and complete the scientific, continuous and stable shareholder return mechanism,increase the transparency and operability of profit distribution policies and decision-making, and effectivelyprotect the legitimate rights and interests of public investors, in accordance with the "Company Law" and theNotice on Further Implementing Matters Concerning Cash Dividend Distribution of Listed Companies (ZJF [2012]No. 37) and the Guidelines for the Supervision of Listed Companies No. 3—Cash Dividends of Listed Companies‖(ZJHGG[2013] No. 43) issued by China Securities Regulatory Commission, and requirements of other relevantlaws and regulations and regulatory documents, and on the basis of the relevant provisions of the "Articles ofAssociation", after comprehensively considering the company's operating financial status and other factors, thecompany's "plan for shareholder returns in the next three years (2021-2023)" formulated by the company. TheCompany's Shareholders Return Planning in the Next Three Years (2021-2023) formulated by the company hasbeen approved. It‘s agreed to submit this matter to the company's board of directors for deliberation.(ii) Responsibility performance for audit committee of the BoardAudit committee of the Board performed its functions of supervision and examination to maintain theindependence of audition in auditing for year of 2020 according to the requirements of related laws andregulations such as Company Law and Rules Governing the Listing of Stocks on Shenzhen Stock Exchange byabiding of Articles of Incorporation, Implementing Regulations of Audit Committee of Board of the Directors,and Annual Work Rules of Audit Committee, the details are as follows:
1. On 20 January 2020, the ―Financial Statement Report for year of 2019 and Arrangement of Internal ControlAuditing‖ and ―Un-audited Financial Accounting Statement for year of 2019‖ were deliberated and approved in
thsession of 9
thaudit committee of the Board, the un-audited financial statement presented an objectifiedfinancial status and operation results for year of 2019 basically.
2. On 9 March 2020, the audit committee held the 15
th session of the 9
thaudit committee after the Shine Wing
Certified Public Account (LLP) issued preliminary audit opinion. Reviewed the auditing draft of financial reportfor year of 2019, proposed specific opinions; members of audit committee communicated with certified publicaccountant who was responsible for audition of the company, the certified public accountant who was beresponsible for annual audition of the company reported related matters and adjusted matters during the auditionto the audit committee, and matters of the company needs to be adjusted have been adjusted according toadjustment opinions of the certified public accountant who was responsible for annual audition. The auditcommittee read the first draft of audited financial accounting statements for 2019 of the company according toaudition condition known from certified public accountant who was responsible for annual audition andproduction operation condition and financial performances reported by management level of the company,considered that the annual financing accounting statements for 2019 audited preliminarily by the Shine WingCertified Public Account can truly, correctly and completely reflect the operation condition of the company, andconfirmed the preliminary audit opinions of financing accounting statements of the company issued by the ShineWing Certified Public Account.
3. On 16 March 2020, the 16
th session of the 9
thaudit committee of the Board deliberated and approved thefollowed five proposals as‖ Audited Financial Statement Report of 2019‖, ―Auditing Report of Internal Controlfor year of 2019‖, ?Summary Report on Auditing Works for year of 2019 from Shine Wing Certified PublicAccount‖, ―Auditing Institution for Financial Report of 2020 and Internal Control Auditing Re-engagement andRemuneration Paid‖, and ―Opening Business of Forward Exchange‖, and agreed to submit these auditinginstitutions to board of the directors of the Company for deliberation.
4. On 15 April 2020, the ―Financial Statement of 1Q of 2020‖ was deliberated and approved in 17
th session of 9
th
audit committee of the Board, the financial statement present a real, accurate and completed financial status andoperation results of the Company for 1Q of 2020. The company's financial statements for the first quarter of 2020have not been audited. The financial statements of 1Q of 2020 agree to submit for approval in the Board.
5. On 4 August 2020, the ―Financial Statement of Semi-annual 2020‖ was deliberated and approved in 18
thsessionof 9
thaudit committee of the Board, the financial statement present a real, accurate and completed financial statusand operation results of the Company for semi-annual of 2020. The company's semi-annual financial report for2020 was not audited. The financial statements of semi-annual 2020 agree to submit for approval in the Board.
6. On 16 October 2020, the ―Financial Statement of 3Q 2020‖ was deliberated and approved in 1
st session of 10
th
audit committee of the Board, the financial statement present a real, accurate and completed financial status andoperation results of the Company for 3Q of 2020. The company's financial statements for the third quarter of 2020have not been audited. The financial statement of 3Q 2020 agree to submit for approval in the Board.
7. On 28 January 2020, the ―Financial Statement Report for year of 2020 and Arrangement of Internal ControlAuditing‖ and ―Un-audited Financial Accounting Statement for year of 2020‖ were deliberated and approved in
ndsession of 10
thaudit committee of the Board, the un-audited financial statement presented an objectifiedfinancial status and operation results for year of 2020 basically.
8. On 9 March 2021, the audit committee held the 3
rd session of the 10
thaudit committee after the Shine WingCertified Public Account (LLP) issued preliminary audit opinion. Reviewed the auditing draft of financial reportfor year of 2020, proposed specific opinions; members of audit committee communicated with certified public
accountant who was responsible for audition of the company, the certified public accountant who was beresponsible for annual audition of the company reported related matters and adjusted matters during the auditionto the audit committee, and matters of the company needs to be adjusted have been adjusted according toadjustment opinions of the certified public accountant who was responsible for annual audition.The audit committee read the first draft of audited financial accounting statements for 2020 of the companyaccording to audition condition known from certified public accountant who was responsible for annual auditionand production operation condition and financial performances reported by management level of the company,considered that the annual financing accounting statements for 2020 audited preliminarily by the Shine WingCertified Public Account can truly, correctly and completely reflect the operation condition of the company, andconfirmed the preliminary audit opinions of financing accounting statements of the company issued by the ShineWing Certified Public Account.
9. On 19 March 2021, the 4
th session of the 10
thaudit committee of the Board deliberated and approved thefollowed five proposals as‖ Audited Financial Statement Report of 2020‖, ―Auditing Report of Internal Controlfor year of 2020‖, ?Summary Report on Auditing Works for year of 2020 from Shine Wing Certified PublicAccount‖, ―Auditing Institution for Financial Report of 2021 and Internal Control Auditing Re-engagement andRemuneration Paid‖, and ―Opening Business of Forward Exchange‖, and agreed to submit these auditinginstitutions to board of the directors of the Company for deliberation.(iii) Responsibility performance for nominations committee of the BoardThe nominations committee under the board of directors practically performed their duties on the basis ofrequirements of laws and regulations of ―Company Law‖ and ―Rules Governing the Listing of Stocks on ShenzhenStock Exchange‖, and in strict accordance with ―Articles of Association‖, ―Implementation Rules of NominationsCommittee of the Board‖, in the reporting period, the nominations committee reviewed and maderecommendations to the engaged director and senior management that needed to be submitted to the board forconsideration and nomination.
1. In view of the fact that the term of the company‘s ninth board of directors has expired on September 12, 2020,in accordance with the ―Company Law‖, ―Articles of Association‖, ―Rules of Procedures of the Board ofDirectors‖, ―Implementation Rules of the Nomination Committee of the Board of Directors‖ and other relevantregulations, after considering the corporate governance structure of the company‘s board of directors, andcombined with the actual situation of the company, the tenth board of directors of the company is composed of 9directors, including 6 non-independent directors and 3 independent directors.On 16 September 2020, the nomination committee held its 8
th meeting of the nomination committee of the 9
th
board of directors, deliberated and approved two proposal of qualification auditing for the non-independentdirector elected as 10
th
BOD and qualification auditing for the chairman elected as 10
thBOD.
(1) After reviewed by the nominations committee, it is deemed that the educational background, serviceexperience, professional ability and professional quality of the candidates for the non-independent director of thecompany‘s tenth board of directors meet the requirements for the position to be held, and have not been punishedby the China Securities Regulatory Commission or other relevant departments or received any disciplinarysanctions of the stock exchange in the past five years, there are no cases of suspected crimes being filed for
investigation by judicial organs or suspected of violations of laws and regulations by the China SecuritiesRegulatory Commission; they are neither the person subject to enforcement nor the responsibility subject ofuntrustworthiness, and there is no circumstances that the director candidates are not allowed to be nominated asdirectors, their qualifications meet the requirements of relevant laws, administrative regulations, departmentalrules, regulatory documents, "Stock Listing Rules" and other relevant provisions of the stock exchange. Theabove-mentioned director candidates have strong professional knowledge and rich work experience in relatedindustries, which will help further improve the corporate governance structure of the company and benefit thecompany's long-term business development. It is recommended that the board of directors nominate Mr. WuDinggang, Mr. Kou Huameng, Mr. Yong Fengshan, Mr. Zhong Ming, Mr. Hu Zhaogui, and Mr. Chen Ye ascandidates for non-independent directors of the company's tenth board of directors.
(2)After reviewed by the nominations committee, it is deemed that the educational background, service experience,professional ability and professional quality of the candidates for the independent director of the company‘s tenthboard of directors meet the requirements for the position to be held, and have not been punished by the ChinaSecurities Regulatory Commission or other relevant departments or received any disciplinary sanctions, there areno cases of suspected crimes being filed for investigation by judicial organs or suspected of violations of laws andregulations by the China Securities Regulatory Commission; they are neither the person subject to enforcementnor the responsibility subject of untrustworthiness, and there is no circumstances that the director candidates arenot allowed to be nominated as directors, their qualifications meet the requirements of relevant laws,administrative regulations, departmental rules, regulatory documents, "Stock Listing Rules" and other relevantprovisions of the stock exchange. Meanwhile, each candidate for independent director has the qualifications andindependence to hold office as stipulated in the ―Measures for Filing Independent Directors of Shenzhen StockExchange Measures‖, and candidates have strong professional knowledge and rich work experience in relatedindustries, which will help further improve the corporate governance structure of the company and benefit thecompany's long-term business development. It is recommended that the board of directors nominate Mr. HongYuanjia, Ms. Mou Wen and Mr. Zhao Gang as candidates for independent directors of the company's tenth boardof directors.
2. On October 12, 2020, the nomination committee held the first meeting of the nomination committee of the tenthboard of directors. The meeting reviewed and approved the Proposal on the Qualification Examination of theCompany‘s Board of Directors for the Senior Managers Planned to Be Appointed by the Company‖.According to the company‘s actual business development needs and taking into account the continuity of thecompany‘s management, nominated by the company‘s chairman and reviewed by the nomination committee, thequalifications of the company‘s senior executives planned to be appointed by the company‘s board of directorsconform to the "Company Law" and "Articles of Association" and the relevant regulations of the China SecuritiesRegulatory Commission, there is no situation that has been determined by the China Securities RegulatoryCommission as a market ban or the ban has not been lifted. The educational background, professional experience,professional competence and professional quality of the senior executives to be appointed this time meet the jobrequirements of proposed position. It is recommended that the tenth session of the company‘s board of directorscontinue the appointments of Mr. Kou Huameng as the company‘s vice president (acting on behalf of the
president), Mr. Liu Hongwei as the company‘s executive vice president, Mr. Zhong Ming, Mr. Hu Zhaogui, andMr. Huang Danian as the company‘s vice presidents, and Mr. Pang Haitao as the company‘s chief financial officer(head of finance), continue to appoint Ms. Li Xia as secretary of the company's board of directors. Thequalifications of Ms. Li Xia have been filed and reviewed by the Shenzhen Stock Exchange and there is noobjection.
3. On 9 December, 2020, the nomination committee held the second meeting of the nomination committee of the
tenth board of directors. The meeting reviewed and approved the Proposal on the Qualification Examination of theCompany‘s Board of Directors for the President Planned to Be Appointed by the Company‖.According to the company‘s business and management needs, nominated by the company‘s chairman andreviewed by the nomination committee, the company‘s senior executives planned to be appointed by thecompany‘s board of directors have not been punished by the China Securities Regulatory Commission and otherrelevant departments nor taken disciplinary actions by the stock exchange. There is no case of being filed forinvestigation by judicial organs for suspected crimes or being filed for investigation by the China SecuritiesRegulatory Commission for suspected violations of laws and regulations. They are neither the person subject toenforcement nor the responsibility subject of untrustworthiness, and there is no circumstances that the candidatesare not allowed to be nominated as senior executives. The educational background, professional experience,professional competence and professional quality of the senior executives to be appointed this time meet the jobrequirements of proposed position. It was agreed to nominate Mr. Zhong Ming as the president of the companyand submit to the board of directors for deliberation.
4. On 19 March 2021, the nomination committee held its 3
rd meeting of the nomination committee of the 10
th
board of directors, deliberated and approved the Proposal on review by the BOD of the qualifications forappointment of the proposed Vice President of the Company.According to the company‘s business and management needs, nominated by the company‘s president andreviewed by the nomination committee, the company‘s senior executives planned to be appointed by thecompany‘s board of directors have not been punished by the China Securities Regulatory Commission and otherrelevant departments nor taken disciplinary actions by the stock exchange. There is no case of being filed forinvestigation by judicial organs for suspected crimes or being filed for investigation by the China SecuritiesRegulatory Commission for suspected violations of laws and regulations. They are neither the person subject toenforcement nor the responsibility subject of untrustworthiness, and there is no circumstances that the candidatesare not allowed to be nominated as senior executives. The educational background, professional experience,professional competence and professional quality of the senior executives to be appointed this time meet the jobrequirements of proposed position. It was agreed to nominate Mr. Tang Youdao as the deputy president of thecompany and submit to the board of directors for deliberation.(iv) Responsibility performance for remuneration and appraisal committee of the boardIn line with relevant laws and regulation of Company Law and ―Rules Governing the Listing of Stocks onShenzhen Stock Exchange‖, remuneration and appraisal committee of the Board, strictly follow rules of ―Articleof Association‖ and ―Implementation Rules of remuneration and appraisal committee of the Board‖, in thereporting period, the committee proposed suggestions on the performance evaluation standards and incentive &
restraint mechanism for directors, supervisors and senior executives, and review the appraisal and remuneration ofdirectors, supervisors and senior executives, accrual and distribution for performance incentive fund included.More details are as:
1. On 16 March 2020, the 3
rd meeting of the Remuneration and Appraisal Committee of the 9
thBoard of Directorswas convened. The meeting reviewed and approved the "Appraisal and Payment of Remuneration of Directorsand Senior Executives in Current Year 2019", and carried out follow opinions:
The committee assessed and reviewed the remunerations and payment status of the Company‘s directors andsenior executives in 2019, and considered that the allowances received by the independent directors of theCompany should be paid at the allowance rate approved by the general meeting of shareholders; theremunerations received by the Company‘s senior executives from the Company should be strictly based on theCompany‘s remuneration and assessment system, the remuneration information disclosed by the Company wastruthful, accurate, and complete and conformed to requirements of ―Content and Format Norm for InformationDisclosure of Companies Publicly Issuing Securities No. 2 - Content and Format of Annual Report (Revised in2017)‖ of China Securities Regulatory CommissionThe Board of Directors of the Company reviewed and passed the remuneration assessment and payment mattersof the directors and senior executives in the Company‘s 2019 annual report based on the remuneration assessmentstatus of senior executives of the Company and the opinions of the remuneration and appraisal committee.
2. On September 16, 2020, the fourth meeting of the remuneration and appraisal committee of the ninth board ofdirectors was held. The meeting reviewed and approved the Proposal on Determining the Allowance Standards forIndependent Directors of the 10th Board of Directors of the Company, and issued the following review opinions:
According to the relevant regulations and requirements of "Guiding Opinions on Establishing an IndependentDirector System in Listed Companies" of the China Securities Regulatory Commission and the "Articles ofAssociation", taking into account the actual situation of the company and referring to the independent directorallowance standards of listed companies in the same industry, it was agreed that the allowance standards for theindependent directors of the company's tenth board of directors is intended to be 100,000 yuan per person per year(after tax). At the same time, it was agreed to submit this proposal to the company's board of directors fordeliberation.
3. On 19 March 2021, the remuneration and appraisal committee of the 10
thSession of Board of Directorsconvened the 1
stmeeting which reviewed and approved the ―Remuneration Assessment and Payment of Directorsand Senior Executives of the Company in 2020‖ and issued the following review opinions:
The committee assessed and reviewed the remunerations and payment status of the Company‘s directors andsenior executives in 2020, and considered that the allowances received by the independent directors of theCompany should be paid at the allowance rate approved by the general meeting of shareholders; theremunerations received by the Company‘s senior executives from the Company should be strictly based on theCompany‘s remuneration and assessment system, the remuneration information disclosed by the Company wastruthful, accurate, and complete and conformed to requirements of ―Content and Format Norm for InformationDisclosure of Companies Publicly Issuing Securities No. 2 - Content and Format of Annual Report (Revised in2017)‖ of China Securities Regulatory Commission
The Board of Directors of the Company reviewed and passed the remuneration assessment and payment mattersof the directors and senior executives in the Company‘s 2020 annual report based on the remuneration assessmentstatus of senior executives of the Company and the opinions of the remuneration and appraisal committee.VII. Works from Supervisory CommitteeWhether the Company has risks or not in reporting period that found in supervisory activity from supervisorycommittee
□Yes √ No
Supervisory committee has no objection about supervision events in reporting periodVIII. Appraisal and incentive to senior managementDuring the reporting period, The Company established 2020 annual compensation and performance managementplan for the senior management of the Company in accordance with the main scope, responsibilities, importanceof their management positions and the remuneration level of other relevant enterprises and positions; the planincluded but not limited to key performance indicator (KPI), performance appraisal standards, procedures andmajor programs and systems of main appraisal system, reward and punishment; investigated the execution of dutyof the senior management and implemented annual performance appraisal to them. After reviewed by thecommittee, submit to the Board for approval.At the end of Current Year, combined with the senior management‘s working reports and self-evaluation of 2020,and according to the performance evaluation criteria and procedures, the Compensation and Appraisal Committeehas carried out performance appraisal to the senior management‘s key performance indication (KPI) in 2020 andother related indicators; proposed the remuneration amount and performance assessment methods for seniormanagement according to the job performance evaluation results and remuneration distribution policy, andreported to the Board of Directors for approval.IX. Internal Control(i) Details of major defects in IC appraisal report that found in reporting period
□Yes √ No
(ii) Appraisal Report of Internal Control
| Date of evaluation report of internal control disclosed (Full-text) | March 31, 2021 | ||
| Index of evaluation report of internal control disclosed (Full-text) | Juchao Website (www.cninfo.com.cn) | ||
| The ratio of the total assets of units included in the scope of evaluation accounting for the total assets on the company's consolidated financial statements | 99.83% | ||
| The ratio of the operating income of units included in the scope of evaluation accounting for the operating income on the company's consolidated financial statements | 100% | ||
| Defects Evaluation Standards | |||
| Category | Financial Reports | Non-financial Reports | |
| Qualitative criteria | 1. Material defect: severally or jointly with other defects, will lead to material wrong reporting in financial reports being not able to prevented or found or rectified in a timely manner. Occurrence of the followings will be deemed as material defect: 1. inefficiency of environment control; 2. fraud of directors, supervisors and senior management; 3. The external auditor finds material wrong reporting in current financial statement, while the Company has not found such reporting during its operation; 4. The material defect identified and reported to the management fails to be rectified in a reasonable time period; 5. The audit committee and audit department of the Company exercise invalid supervision upon internal control; 6. Other defects which may affect financial statement users to make correct judgment. 2. Major defect: severally or jointly with other defects, will lead to wrong reporting in financial reports being not able to prevented or found or rectified in a timely manner which still needs attention from the management though it doesn‘t reach or exceed material defect as described above. Occurrence of the followings will be deemed as major defect: (1) Financial losses caused by guaranteeing and investing in securities and financial derivatives transactions and disposing property right and stock right without authorization; (2) The company's financial staff or other relevant business personnel have unclear powers and responsibilities or job chaos, or are suspected of being involved in economic or job-related crimes and have been transferred to the judiciary; (3) Punishment or severely negative impacts on the company's image due to the bias implementation of the policy or accounting errors, etc.; (4) Financial losses caused by destroying, concealing, or altering the important original evidences at will, such as invoices and checks, etc. (5) Cash income is not entered into the account book, or public funds are deposited in private account or "private coffer" is established by breaking the rules. 3. General defect: other internal control related defects that do not constitute material defects or major defect. | Occurrence of the followings shall be deemed as material defect, otherwise as major defect or general defect subject to the level of influence. 1. breach of national laws, regulations or regulatory documents; 2. procedure for making significant decisions is not scientific; 3. absence of system may lead to invalid system; 4. Material or major defects are not likely to rectify; 5. Large negative effects on the company and disclosed in the form of announcement; 6. Other issues that materially affect the Company. |
| Quantitative standard | 1. Proportion of potential wrong reporting in total operating income: Material defect: wrong reporting ≧0.5%; Major defect: 0.1% ≤ wrong reporting＜0.5%; General defect: wrong reporting＜0.1%. 2. Proportion of potential wrong reporting in total profit: Material defect: wrong reporting ≧10%; Major defect: 5% ≤ wrong reporting＜10%; General defect: wrong reporting＜5%. 3. Proportion of potential wrong reporting in total assets: Material defect: wrong reporting ≧0.5%; Major defect: 0.1% ≤ wrong reporting＜0.5%; General defect: wrong reporting＜0.1%. 4. Proportion of potential wrong reporting in total owners’ equity: Material defect: wrong reporting ≧0.5%; Major defect: 0.1% ≤ wrong reporting＜0.5%; General defect: wrong reporting＜0.1%. | 1. Proportion of direct property loss in total operating income: Material defect: wrong reporting ≧0.1%; Major defect: 0.05% ≤ wrong reporting＜0.1%; General defect: wrong reporting＜0.05%. 2. Proportion of direct property loss in total profit: Material defect: wrong reporting ≧10%; Major defect: 5% ≤ wrong reporting＜10%; General defect: wrong reporting＜5%. 3. Proportion of direct property loss in total assets: Material defect: wrong reporting ≧0.2%; Major defect: 0.1% ≤ wrong reporting＜0.2%; General defect: wrong reporting＜0.1%. 4. Proportion of direct property loss in total owners’ equity: Material defect: wrong reporting ≧0.2%; Major defect: 0.1% ≤ wrong reporting＜0.2%; General defect: wrong reporting＜0.1%. | |
| Amount of significant defects in financial reports | 0 | ||
| Amount of significant defects in non-financial reports | 0 | ||
| Amount of important defects in financial reports | 0 | ||
| Amount of important defects in non-financial reports | 0 | ||
X. Auditing report of internal control
√ Applicable □ Not applicable
| Deliberation section of auditing report of IC | |
| We consider that: in all major aspects, Changhong Meiling Co., Ltd. has efficiency in financial report of internal control dated 31 December 2020 according to Basic Standards of Internal Control for Enterprise and relevant regulations. | |
| Disclosure details of audit report of internal control | Disclosed |
| Disclosure date of audit report of internal control (full-text) | March 31, 2021 |
| Index of audit report of internal control (full-text) | Juchao Website (www.cninfo.com.cn) |
| Opinion type of auditing report of IC | Standard unqualified |
| whether the non-financial report had major defects | No |
Whether CPA carries out qualified opinion for audit report of internal control or not
□Yes √ No
Whether the opinions are consistent in audit report of internal control carrying out by CPA and the self-evaluationreport of the Board or not
√ Yes □ No
Section XI. Corporate Bond
Whether the Company has a corporation bonds that issuance publicly and listed on stock exchange and withoutdue on the date when annual report approved for released or fail to cash in full on due
□Yes √No
Section XII. Financial Report
I. Audit report
| Type of audit opinion | Standard unqualified opinion |
| Date for signing the report | 29 March 2021 |
| Name of audit institute | Shine Wing Certified Public Accountants (LLP) |
| Serial of Auditing Report | XYZH/2021CDAA70082 |
| Name of CPA | Li Xifu, Wang Xiaodong |
Auditor’s Report
XYZH/2021CDAA70082
To Shareholders of Changhong Meiling Co., Ltd.:
I. Auditor’s opinionWe, as the auditors, audited the financial statements of Changhong Meiling Co., Ltd. (the ―Company‖), whichincluded the consolidated balance sheet as of 31 December 2020, the consolidated statement of income, theconsolidated statement of cash flow and the consolidated statement of changes in equity of the Company forCurrent Year ended 31 December 2020, together with the relevant notes thereto.We are the view that the attached financial statements are prepared in accordance with the Business AccountingStandards in all material aspects, which reflect fairly the consolidated financial position of the Company as of 31December 2020 and the operating results and cash flow of the Company for Current Year of 2020.II. Basis for audit opinionsWe conducted this audit under the requirements of the Auditing Standards of the Certified Public Accountant ofthe PRC. The section headed ―Certified Public Accountant‘s responsibility for audit of financial statement‖ in theaudit report has further clarified our responsibilities under these standards. Pursuant to the code of professionalconduct as certified public accountant in the PRC, we are independent of the Company and have performed otherresponsibility as required by our professional ethics. We believe that the audit evidence obtained by us issufficient and adequate, which provides foundation for us to issue audit opinion.
III. Key audit issuesKey audit matters are those matters that, in our professional judgment, were of most significance in our audit ofthe financial statements of the current period. These matters were addressed in the context of our audit of thefinancial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion onthese matters. The key audit matter we identified is as follows:
| 1.Recognition of revenue | |
| Please refer to note (iv) 26 and note (vi) 40. | |
| Key audit matters | Audit address |
| Sales revenue of the Company was mainly sourced from sales of refrigerator, air conditioner, small household appliances and kitchen and washing machines to both domestic and overseas customers. As indicated in note (vi) 40 of the financial statement - Operating income and cost, the operating income was RMB 15,388,050,229.67 in 2020. Since the truthfulness and completeness of revenue recognition has material impact on operating results, we attached great importance to recognition of sales revenue. | Main auditing procedures for revenue recognition are including: |
| 1) know and test the cycle internal control of sales and collection, to assess the design and effectiveness of the internal control; | |
| 2) understand the business substance, inspect significant sales contract and the corresponding sales invoice, on a random basis, receipt of notes, delivery information confirmed through systems, verify that whether revenue was recognized upon satisfaction of required conditions and whether the revenue recognition was made in right timing, and verify that whether profit was adjusted through aggressive sales policy; | |
| 3) Carry out supervision and other procedures to the important inventory at end of the period, well-known the progress of the contracts and follow up the abnormal situations found in inspection; | |
| 4) Conduct inquiry through issue of letters, and carry out additional audit procedures for the items for which reply was abnormal; | |
| 5) review collection of trade receivables, confirm the conformity between the entities owing receivables and name of customers to verify whether there was collection of receivables from third parties, to review the truthfulness of the collection and revenue; | |
| 6) review collection of receivables in subsequent period; | |
| 7) make cut-off test and analysis re-review on revenue. | |
| 2.Capitalization of development expense | |
| Please refer to note (iv) 20 and note (vi) 16 | |
| Key audit matters | Audit address |
| The development expense occurred for research and development of non-patent technology in 2020 was RMB 134,284,644.90, which was capitalized and accounted for as development | 1) Understand the key control of capitalization of development expenditures, implement internal control audit procedures, understand the scope and accounting methods of development expenditures, understand and make research and development on related control systems and processes, |
| expense in the consolidated financial statement. Development expense could only be capitalized upon satisfaction of all the capitalization conditions set out in note (iv) 20 to the financial statement. Since to confirm whether all the capitalization conditions are met requires the management to make significant judgment and estimate, we deem this matter important in the context of our audit. | and test the effectiveness of relevant internal control design and operation; |
| 2) Implementation: compare the developed projects in intangible assets with machinery models for external sales, and re-verify the truthfulness of capitalization of completely developed projects | |
| 3) Dual purpose testing: inspect the project reports and inspection and acceptance reports formed during the research and development and commercialization of developed products, and judge the sufficiency of basis for accounting of development expense |
IV. Other informationThe management of Changhong Meiling Co., Ltd. (the ―Management‖) is responsible for other information whichincludes the information covered in the Company‘s 2020 annual report excluding the financial statement and ouraudit report.The audit opinion issued by us for the financial statement has not covered other information, for which we do notissue any form of assurance opinions.Considering our audit on financial statements, we are liable to read other information, during which, we shallconsider whether other information differs materially from the financial statements or that we understand duringour audit, or whether there is any material misstatement.Based on the works executed by us, we should report the fact if we find any material misstatement in otherinformation. In t his regards, we have nothing to report.V. Responsibilities of management and those charged with governance for the financial statementsThe management is responsible for the preparation of the financial statements in accordance with the AccountingStandards for Enterprise to secure a fair presentation, and for the design, establishment and maintenance of theinternal control necessary to enable the preparation of financial statements that are free from materialmisstatement, whether due to fraud or error.In preparing the financial statements, the management is responsible for assessing the Company‘s ability tocontinue as a going concern, disclosing matters related to going concern and using the going concern assumptionunless the management either intends to liquidate the Company or to cease operations, or has no realisticalternative but to do so.Those charged with governance are responsible for overseeing the Company‘s financial reporting process.
VI. Responsibilities of the auditor for the financial statementsOur objectives are to obtain reasonable assurance about whether the financial statements as a whole are free frommaterial misstatement, whether due to fraud or error, and to issue an audit report that includes our audit opinion.Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordancewith the CAS will always detect a material misstatement when it exists. Misstatements can arise from fraud orerror and are considered material if, individually or in the aggregate, they could reasonably be expected toinfluence the economic decisions of users taken on the basis of the financial statements.As part of an audit in accordance with the CAS, we exercise professional judgment and maintain professionalskepticism throughout the audit. We also:
(1) identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error,design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient andappropriate to provide a basis for audit opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,misrepresentations, or the override of internal control.
(2) Obtain an understanding of internal control relevant to the audit in order to design audit procedures that areappropriate in the circumstances.
(3) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates andrelated disclosures made by the management.
(4) Conclude on the appropriateness of the management‘s use of the going concern assumption and, based on theaudit evidence obtained, whether a material uncertainty exists related to events or conditions that may castsignificant doubt on the Company‘s ability to continue as a going concern. If we conclude that a materialuncertainty exists, we are required by the CAS to draw users‘ attention in audit report to the related disclosures inthe financial statements or, if such disclosures are inadequate, to modify audit opinion. Our conclusions are basedon the information obtained up to the date of audit report. However, future events or conditions may cause theCompany to cease to continue as a going concern.
(5) Evaluate the overall presentation, structure and content of the financial statements, and whether the financialstatements represent the underlying transactions and events in a manner that achieves fair presentation.
(6) Obtain sufficient appropriate audit evidence regarding the financial information of the entities or businessactivities within the Company to express audit opinion on the financial statements. We are responsible for thedirection, supervision and performance of the group audit. We remain solely responsible for audit opinion.We communicate with those charged with governance regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including any significant deficiencies in internal control that weidentify during our audit.We also provide those charged with governance with a statement that we have complied with relevant ethicalrequirements regarding independence, and communicate with them all relationships and other matters that mayreasonably be thought to bear on our independence, and where applicable, related safeguard measures.From the matters communicated with those charged with governance, we determine those matters that were ofmost significance in the audit of the financial statements of the current period and are therefore the key auditmatters. We describe these matters in the auditor‘s report unless law or regulation precludes public disclosureabout the matter or when, in extremely rare circumstances, we determine that a matter should not becommunicated in the auditor‘s report because of the adverse consequences of doing so would reasonably beexpected to outweigh the public interest benefits of such communication.
| Shine Wing Certified Public Accountants (LLP) | Chinese CPA: Li Xifu (engagement partner) | |
| Chinese CPA: Wang Xiaodong | ||
| Beijing China | 29 March 2021 |
II. Financial statementsUnits in Notes of Financial Statements is RMB
1. Consolidated Balance Sheet
Prepared by CHANGHONG MEILING CO., LTD. December 31, 2020
In RMB
| Item | December 31, 2020 | December 31, 2019 |
| Current assets: | ||
| Monetary funds | 6,594,786,789.98 | 5,499,601,030.64 |
| Settlement provisions | ||
| Capital lent | ||
| Tradable financial assets | 47,242,339.07 | 7,730,268.92 |
| Derivative financial assets | ||
| Note receivable | 340,421,386.71 | 1,865,165,499.50 |
| Account receivable | 1,130,275,780.66 | 1,387,961,981.66 |
| Receivable financing | 1,632,388,702.83 | |
| Accounts paid in advance | 30,105,373.40 | 25,270,406.37 |
| Insurance receivable | ||
| Reinsurance receivables | ||
| Contract reserve of reinsurance receivable | ||
| Other account receivable | 145,705,978.26 | 97,241,894.80 |
| Including: Interest receivable | 9,510,208.63 | |
| Dividend receivable | 661,434.48 | |
| Buying back the sale of financial assets | ||
| Inventories | 1,715,354,951.43 | 1,460,910,189.06 |
| Contractual assets | ||
| Assets held for sale | ||
| Non-current asset due within one year | ||
| Other current assets | 198,353,464.98 | 63,604,031.96 |
| Total current assets | 11,834,634,767.32 | 10,407,485,302.91 |
| Non-current assets: | ||
| Loans and payments on behalf | ||
| Debt investment |
| Other debt investment | ||
| Long-term account receivable | ||
| Long-term equity investment | 76,982,822.38 | 88,556,511.70 |
| Investment in other equity instrument | ||
| Other non-current financial assets | 548,148,931.34 | 45,000,000.00 |
| Investment real estate | 53,888,462.00 | 96,343,760.13 |
| Fixed assets | 2,391,859,440.31 | 2,180,572,946.87 |
| Construction in progress | 60,775,088.96 | 252,494,792.31 |
| Productive biological asset | ||
| Oil and gas asset | ||
| Right-of-use assets | ||
| Intangible assets | 936,851,520.65 | 933,248,463.84 |
| Expense on Research and Development | 73,028,441.56 | 101,078,659.57 |
| Goodwill | ||
| Long-term expenses to be apportioned | ||
| Deferred income tax asset | 127,185,979.94 | 97,453,178.14 |
| Other non-current asset | ||
| Total non-current asset | 4,268,720,687.14 | 3,794,748,312.56 |
| Total assets | 16,103,355,454.46 | 14,202,233,615.47 |
| Current liabilities: | ||
| Short-term loans | 1,336,209,050.55 | 1,103,991,045.96 |
| Loan from central bank | ||
| Capital borrowed | ||
| Trading financial liability | 4,584,076.51 | 1,081,534.93 |
| Derivative financial liability | ||
| Note payable | 4,439,607,982.34 | 3,490,271,482.40 |
| Account payable | 2,851,999,684.30 | 2,343,116,374.58 |
| Accounts received in advance | 425,149,194.97 | |
| Contractual liability | 522,550,891.28 | |
| Selling financial asset of repurchase | ||
| Absorbing deposit and interbank deposit | ||
| Security trading of agency | ||
| Security sales of agency | ||
| Wage payable | 290,321,776.05 | 196,507,174.68 |
| Taxes payable | 89,682,433.90 | 68,558,391.66 |
| Other account payable | 724,701,686.72 | 689,477,603.21 |
| Including: Interest payable | 12,340,385.61 | |
| Dividend payable | 4,466,628.25 | 3,579,491.94 |
| Commission charge and commission payable | ||
| Reinsurance payable | ||
| Liability held for sale | ||
| Non-current liabilities due within one year | 407,825,150.74 | 1,708,193.90 |
| Other current liabilities | 22,923,698.73 | |
| Total current liabilities | 10,690,406,431.12 | 8,319,860,996.29 |
| Non-current liabilities: | ||
| Insurance contract reserve | ||
| Long-term loans | 188,231,439.30 | 401,280,000.00 |
| Bonds payable | ||
| Including: Preferred stock | ||
| Perpetual capital securities | ||
| Lease liability | ||
| Long-term account payable | 1,705,323.91 | 3,016,921.44 |
| Long-term wages payable | 10,571,526.69 | 13,774,110.61 |
| Accrual liability | 62,392,735.07 | 166,099,143.97 |
| Deferred income | 177,377,450.12 | 179,970,971.92 |
| Deferred income tax liabilities | 10,575,582.33 | 6,256,759.14 |
| Other non-current liabilities | ||
| Total non-current liabilities | 450,854,057.42 | 770,397,907.08 |
| Total liabilities | 11,141,260,488.54 | 9,090,258,903.37 |
| Owner‘s equity: | ||
| Share capital | 1,044,597,881.00 | 1,044,597,881.00 |
| Other equity instrument | ||
| Including: Preferred stock | ||
| Perpetual capital securities | ||
| Capital public reserve | 2,683,837,229.12 | 2,684,366,619.10 |
| Less: Inventory shares | 9,929,336.18 | |
| Other comprehensive income | -21,451,084.17 | -18,931,430.36 |
| Reasonable reserve |
| Surplus public reserve | 416,364,790.43 | 410,786,860.20 |
| Provision of general risk | ||
| Retained profit | 740,754,202.23 | 884,127,743.42 |
| Total owner‘ s equity attributable to parent company | 4,854,173,682.43 | 5,004,947,673.36 |
| Minority interests | 107,921,283.49 | 107,027,038.74 |
| Total owner‘ s equity | 4,962,094,965.92 | 5,111,974,712.10 |
| Total liabilities and owner‘ s equity | 16,103,355,454.46 | 14,202,233,615.47 |
Legal Representative: Wu DinggangPerson in charge of accounting works: Pang HaitaoPerson in charge of accounting institute: Yang Jun
2. Balance Sheet of Parent Company
In RMB
| Item | December 31, 2020 | December 31, 2019 |
| Current assets: | ||
| Monetary funds | 4,605,962,184.11 | 4,040,632,437.18 |
| Tradable financial assets | 37,589,391.07 | 5,967,556.00 |
| Derivative financial assets | ||
| Note receivable | 286,990,200.00 | 1,722,707,248.74 |
| Account receivable | 1,019,299,017.40 | 1,158,563,389.33 |
| Receivable financing | 1,561,429,139.80 | |
| Accounts paid in advance | 39,571,728.09 | 34,374,932.07 |
| Other account receivable | 49,093,918.57 | 41,964,639.42 |
| Including: Interest receivable | 7,880,186.85 | |
| Dividend receivable | 661,434.48 | |
| Inventories | 578,905,855.30 | 339,728,296.66 |
| Contractual assets | ||
| Assets held for sale | ||
| Non-current assets maturing within one year | ||
| Other current assets | 142,573,164.77 | 11,930,690.86 |
| Total current assets | 8,321,414,599.11 | 7,355,869,190.26 |
| Non-current assets: | ||
| Debt investment |
| Other debt investment | ||
| Long-term receivables | ||
| Long-term equity investments | 1,834,115,835.95 | 1,698,744,114.99 |
| Investment in other equity instrument | ||
| Other non-current financial assets | 548,148,931.34 | 45,000,000.00 |
| Investment real estate | 3,961,590.38 | 7,314,721.80 |
| Fixed assets | 1,229,803,474.56 | 1,138,092,635.67 |
| Construction in progress | 47,570,309.13 | 106,575,581.28 |
| Productive biological assets | ||
| Oil and natural gas assets | ||
| Right-of-use assets | ||
| Intangible assets | 479,923,618.32 | 483,887,751.05 |
| Research and development costs | 42,913,363.51 | 56,295,271.74 |
| Goodwill | ||
| Long-term deferred expenses | ||
| Deferred income tax assets | 103,462,284.33 | 77,849,317.77 |
| Other non-current assets | ||
| Total non-current assets | 4,289,899,407.52 | 3,613,759,394.30 |
| Total assets | 12,611,314,006.63 | 10,969,628,584.56 |
| Current liabilities | ||
| Short-term borrowings | 1,234,926,592.05 | 1,009,757,944.82 |
| Trading financial liability | 2,512,269.00 | 1,016,052.00 |
| Derivative financial liability | ||
| Notes payable | 2,510,288,511.69 | 1,936,867,907.42 |
| Account payable | 1,918,960,127.71 | 1,497,704,307.48 |
| Accounts received in advance | 147,365,864.56 | |
| Contractual liability | 281,974,752.24 | |
| Wage payable | 130,314,834.51 | 39,633,867.87 |
| Taxes payable | 19,582,700.30 | 20,427,731.13 |
| Other accounts payable | 624,090,798.72 | 520,559,494.30 |
| Including: Interest payable | 13,175,235.76 | |
| Dividend payable | 3,866,628.25 | 3,579,491.94 |
| Liability held for sale | ||
| Non-current liabilities due within one year | 407,141,888.08 |
| Other current liabilities | 6,432,113.43 | |
| Total current liabilities | 7,136,224,587.73 | 5,173,333,169.58 |
| Non-current liabilities: | ||
| Long-term loans | 188,231,439.30 | 401,280,000.00 |
| Bonds payable | ||
| Including: preferred stock | ||
| Perpetual capital securities | ||
| Lease liability | ||
| Long-term account payable | ||
| Long term employee compensation payable | 10,571,526.69 | 13,774,110.61 |
| Accrued liabilities | 55,035,910.31 | 158,742,319.21 |
| Deferred income | 67,315,337.57 | 67,664,815.53 |
| Deferred income tax liabilities | 6,102,908.01 | 742,725.60 |
| Other non-current liabilities | ||
| Total non-current liabilities | 327,257,121.88 | 642,203,970.95 |
| Total liabilities | 7,463,481,709.61 | 5,815,537,140.53 |
| Owners‘ equity: | ||
| Share capital | 1,044,597,881.00 | 1,044,597,881.00 |
| Other equity instrument | ||
| Including: preferred stock | ||
| Perpetual capital securities | ||
| Capital public reserve | 2,753,137,787.99 | 2,753,017,007.10 |
| Less: Inventory shares | 9,929,336.18 | |
| Other comprehensive income | ||
| Special reserve | ||
| Surplus reserve | 416,146,624.75 | 410,568,694.52 |
| Retained profit | 943,879,339.46 | 945,907,861.41 |
| Total owner‘s equity | 5,147,832,297.02 | 5,154,091,444.03 |
| Total liabilities and owner‘s equity | 12,611,314,006.63 | 10,969,628,584.56 |
Legal Representative: Wu DinggangPerson in charge of accounting works: Pang HaitaoPerson in charge of accounting institute: Yang Jun
3. Consolidated Profit Statement
In RMB
| Item | 2020 | 2019 |
| I. Total operating income | 15,388,050,229.67 | 16,553,252,894.93 |
| Including: Operating income | 15,388,050,229.67 | 16,553,252,894.93 |
| Interest income | ||
| Insurance gained | ||
| Commission charge and commission income | ||
| II. Total operating cost | 15,602,345,607.20 | 16,579,810,406.62 |
| Including: Operating cost | 12,850,871,672.57 | 13,455,692,376.85 |
| Interest expense | ||
| Commission charge and commission expense | ||
| Cash surrender value | ||
| Net amount of expense of compensation | ||
| Net amount of withdrawal of insurance contract reserve | ||
| Bonus expense of guarantee slip | ||
| Reinsurance expense | ||
| Tax and extras | 150,315,512.44 | 153,065,726.91 |
| Sales expense | 1,945,803,799.56 | 2,320,362,519.95 |
| Administrative expense | 280,245,684.56 | 330,687,143.82 |
| R&D expense | 380,638,922.91 | 334,218,689.69 |
| Financial expense | -5,529,984.84 | -14,216,050.60 |
| Including: Interest expenses | 88,262,152.17 | 93,523,492.74 |
| Interest income | 139,603,245.84 | 133,568,862.29 |
| Add: other income | 104,122,180.27 | 110,281,102.69 |
| Investment income (Loss is listed with ―-‖) | 78,127,214.62 | -32,695,507.49 |
| Including: Investment income on affiliated company and joint venture | -3,500,527.61 | -8,049,228.81 |
| The termination of income recognition for financial assets measured by amortized cost(Loss is listed with ―-‖) | ||
| Exchange income (Loss is listed with ―-‖) | ||
| Net exposure hedging income (Loss is listed with ―-‖) | ||
| Income from change of fair value (Loss is listed with ―-‖) | 41,614,800.19 | 52,993,630.16 |
| Loss of credit impairment (Loss is listed with ―-‖) | -17,058,488.00 | 4,633,296.89 |
| Losses of devaluation of asset (Loss is listed with ―-‖) | -78,711,657.91 | -30,409,004.57 |
| Income from assets disposal (Loss is listed with ―-‖) | -500,976.21 | -9,537,945.52 |
| III. Operating profit (Loss is listed with ―-‖) | -86,702,304.57 | 68,708,060.47 |
| Add: Non-operating income | 8,468,605.41 | 6,479,922.98 |
| Less: Non-operating expense | 7,644,641.64 | 5,409,757.70 |
| IV. Total profit (Loss is listed with ―-‖) | -85,878,340.80 | 69,778,225.75 |
| Less: Income tax expense | -6,756,228.32 | 26,266,024.94 |
| V. Net profit (Net loss is listed with ―-‖) | -79,122,112.48 | 43,512,200.81 |
| (i) Classify by business continuity | ||
| 1.continuous operating net profit (net loss listed with ?-‖) | -79,122,112.48 | 43,512,200.81 |
| 2.termination of net profit (net loss listed with ?-‖) | ||
| (ii) Classify by ownership | ||
| 1.Net profit attributable to owner‘s of parent company | -85,565,716.91 | 56,441,479.14 |
| 2.Minority shareholders‘ gains and losses | 6,443,604.43 | -12,929,278.33 |
| VI. Net after-tax of other comprehensive income | -2,992,457.19 | -2,068,017.04 |
| Net after-tax of other comprehensive income attributable to owners of parent company | -2,519,653.81 | -787,861.10 |
| (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 | -2,519,653.81 | -787,861.10 |
| 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 | -2,519,653.81 | -787,861.10 |
| 7.Other | ||
| Net after-tax of other comprehensive income attributable to minority shareholders | -472,803.38 | -1,280,155.94 |
| VII. Total comprehensive income | -82,114,569.67 | 41,444,183.77 |
| Total comprehensive income attributable to owners of parent Company | -88,085,370.72 | 55,653,618.04 |
| Total comprehensive income attributable to minority shareholders | 5,970,801.05 | -14,209,434.27 |
| VIII. Earnings per share: | ||
| (i) Basic earnings per share | -0.0819 | 0.0540 |
| (ii) Diluted earnings per share | -0.0819 | 0.0540 |
As for the enterprise combined under the same control, net profit of 0 Yuan achieved by the merged party beforecombination while 0 Yuan achieved last periodLegal Representative: Wu DinggangPerson in charge of accounting works: Pang HaitaoPerson in charge of accounting institute: Yang Jun
4. Profit Statement of Parent Company
In RMB
| Item | 2020 | 2019 |
| I. Operating income | 8,032,949,961.07 | 9,296,448,243.29 |
| Less: Operating cost | 7,576,052,272.85 | 8,437,561,503.10 |
| Taxes and surcharge | 77,270,806.49 | 76,143,013.23 |
| Sales expenses | 266,179,349.65 | 519,213,849.71 |
| Administration expenses | 121,576,790.77 | 135,073,396.64 |
| R&D expenses | 165,977,897.35 | 124,622,622.12 |
| Financial expenses | 11,164,234.35 | 3,761,368.95 |
| Including: interest expenses | 73,229,668.93 | 75,661,399.93 |
| Interest income | 108,915,320.16 | 96,733,624.71 |
| Add: other income | 61,723,009.62 | 71,320,375.50 |
| Investment income (Loss is listed with ―-‖) | 154,731,621.05 | 33,377,287.02 |
| Including: Investment income on affiliated Company and joint venture | 2,444,675.51 | 74,962.32 |
| The termination of income recognition for financial assets measured by amortized cost (Loss is listed with ―-‖) | ||
| Net exposure hedging income (Loss is listed with ―-‖) | ||
| Changing income of fair value (Loss is listed with ―-‖) | 35,734,549.41 | 15,591,743.41 |
| Loss of credit impairment (Loss is listed with ―-‖) | -8,516,361.52 | 9,455,668.24 |
| Losses of devaluation of asset (Loss is listed with ―-‖) | -25,062,192.29 | -17,125,818.42 |
| Income on disposal of assets (Loss is listed with ―-‖) | -736,644.05 | |
| II. Operating profit (Loss is listed with ―-‖) | 33,339,235.88 | 111,955,101.24 |
| Add: Non-operating income | 3,765,462.09 | 907,600.61 |
| Less: Non-operating expense | 1,578,179.79 | 250,826.67 |
| III. Total Profit (Loss is listed with ―-‖) | 35,526,518.18 | 112,611,875.18 |
| Less: Income tax | -20,252,784.15 | 1,250,707.00 |
| IV. Net profit (Net loss is listed with ―-‖) | 55,779,302.33 | 111,361,168.18 |
| (i) continuous operating net profit (net loss listed with ?-‖) | 55,779,302.33 | 111,361,168.18 |
| (ii) termination of net profit (net loss listed with ?-‖) | ||
| V. Net after-tax of other comprehensive income | ||
| (I) Other comprehensive income items which will not be reclassified subsequently to profit of loss | ||
| 1.Changes of the defined benefit plans that re-measured | ||
| 2.Other comprehensive income under equity method that cannot be transfer to gain/loss | ||
| 3.Change of fair value of investment in other equity instrument | ||
| 4.Fair value change of enterprise's credit risk | ||
| 5. Other | ||
| (II) Other comprehensive income items which will be reclassified subsequently to profit or loss | ||
| 1.Other comprehensive income under equity method that can transfer to gain/loss | ||
| 2.Change of fair value of other debt investment | ||
| 3.Amount of financial assets re-classify to other |
| comprehensive income | ||
| 4.Credit impairment provision for other debt investment | ||
| 5.Cash flow hedging reserve | ||
| 6.Translation differences arising on translation of foreign currency financial statements | ||
| 7.Other | ||
| VI. Total comprehensive income | 55,779,302.33 | 111,361,168.18 |
| VII. Earnings per share: | ||
| (i) Basic earnings per share | 0.0534 | 0.1066 |
| (ii) Diluted earnings per share | 0.0534 | 0.1066 |
Legal Representative: Wu DinggangPerson in charge of accounting works: Pang HaitaoPerson in charge of accounting institute: Yang Jun
5. Consolidated Cash Flow Statement
In RMB
| Item | 2020 | 2019 |
| I. Cash flows arising from operating activities: | ||
| Cash received from selling commodities and providing labour services | 15,474,524,946.52 | 17,222,030,229.17 |
| Net increase of customer deposit and interbank deposit | ||
| Net increase of loan from central bank | ||
| Net increase of capital borrowed from other financial institution | ||
| Cash received from original insurance contract fee | ||
| Net cash received from reinsurance business | ||
| Net increase of insured savings and investment | ||
| Cash received from interest, commission charge and commission | ||
| Net increase of capital borrowed | ||
| Net increase of returned business capital | ||
| Net cash received by agents in sale and purchase of securities |
| Write-back of tax received | 486,548,522.92 | 376,209,568.82 |
| Other cash received concerning operating activities | 159,076,641.25 | 172,721,366.51 |
| Subtotal of cash inflow arising from operating activities | 16,120,150,110.69 | 17,770,961,164.50 |
| Cash paid for purchasing commodities and receiving labour service | 12,027,673,706.26 | 13,458,134,618.83 |
| Net increase of customer loans and advances | ||
| Net increase of deposits in central bank and interbank | ||
| Cash paid for original insurance contract compensation | ||
| Net increase of capital lent | ||
| Cash paid for interest, commission charge and commission | ||
| Cash paid for bonus of guarantee slip | ||
| Cash paid to/for staff and workers | 1,431,514,956.02 | 1,513,839,139.23 |
| Taxes paid | 399,508,941.22 | 526,773,134.14 |
| Other cash paid concerning operating activities | 857,936,284.73 | 987,210,287.26 |
| Subtotal of cash outflow arising from operating activities | 14,716,633,888.23 | 16,485,957,179.46 |
| Net cash flows arising from operating activities | 1,403,516,222.46 | 1,285,003,985.04 |
| II. Cash flows arising from investing activities: | ||
| Cash received from recovering investment | 937,460,000.00 | 3,091,000,000.00 |
| Cash received from investment income | 44,100,269.99 | 53,507,866.92 |
| Net cash received from disposal of fixed, intangible and other long-term assets | 1,193,743.37 | 20,786,170.96 |
| Net cash received from disposal of subsidiaries and other units | ||
| Other cash received concerning investing activities | 188,247,281.95 | 126,761,536.28 |
| Subtotal of cash inflow from investing activities | 1,171,001,295.31 | 3,292,055,574.16 |
| Cash paid for purchasing fixed, intangible and other long-term assets | 364,989,816.21 | 326,109,415.77 |
| Cash paid for investment | 1,435,330,051.17 | 2,010,087,040.00 |
| Net increase of mortgaged loans | ||
| Net cash received from subsidiaries and other units obtained | ||
| Other cash paid concerning investing activities | 986,271.84 | 78,815,580.08 |
| Subtotal of cash outflow from investing activities | 1,801,306,139.22 | 2,415,012,035.85 |
| Net cash flows arising from investing activities | -630,304,843.91 | 877,043,538.31 |
| III. Cash flows arising from financing activities |
| Cash received from absorbing investment | 8,441,064.00 | |
| Including: Cash received from absorbing minority shareholders‘ investment by subsidiaries | 8,441,064.00 | |
| Cash received from loans | 2,021,603,483.37 | 1,723,227,548.80 |
| Other cash received concerning financing activities | 28,151,427.20 | |
| Subtotal of cash inflow from financing activities | 2,049,754,910.57 | 1,731,668,612.80 |
| Cash paid for settling debts | 1,617,428,204.65 | 2,820,687,076.56 |
| Cash paid for dividend and profit distributing or interest paying | 118,512,956.15 | 148,244,143.81 |
| Including: Dividend and profit of minority shareholder paid by subsidiaries | 4,796,676.00 | 2,274,030.00 |
| Other cash paid concerning financing activities | 12,542,832.06 | 32,485,727.87 |
| Subtotal of cash outflow from financing activities | 1,748,483,992.86 | 3,001,416,948.24 |
| Net cash flows arising from financing activities | 301,270,917.71 | -1,269,748,335.44 |
| IV. Influence on cash and cash equivalents due to fluctuation in exchange rate | -34,759,956.67 | 8,865,099.67 |
| V. Net increase of cash and cash equivalents | 1,039,722,339.59 | 901,164,287.58 |
| Add: Balance of cash and cash equivalents at the period -begin | 5,385,807,475.51 | 4,484,643,187.93 |
| VI. Balance of cash and cash equivalents at the period -end | 6,425,529,815.10 | 5,385,807,475.51 |
Legal Representative: Wu DinggangPerson in charge of accounting works: Pang HaitaoPerson in charge of accounting institute: Yang Jun
6. Cash Flow Statement of Parent Company
In RMB
| Item | 2020 | 2019 |
| I. Cash flows arising from operating activities: | ||
| Cash received from selling commodities and providing labour services | 7,102,136,613.89 | 8,627,727,420.59 |
| Write-back of tax received | 237,614,998.44 | 197,261,437.46 |
| Other cash received concerning operating activities | 74,421,463.54 | 89,705,595.42 |
| Subtotal of cash inflow arising from operating activities | 7,414,173,075.87 | 8,914,694,453.47 |
| Cash paid for purchasing commodities and receiving labour | 5,957,461,284.93 | 7,246,530,970.04 |
| service | ||
| Cash paid to/for staff and workers | 380,635,018.64 | 411,671,230.56 |
| Taxes paid | 93,192,598.56 | 169,363,775.87 |
| Other cash paid concerning operating activities | 219,564,169.05 | 415,890,005.54 |
| Subtotal of cash outflow arising from operating activities | 6,650,853,071.18 | 8,243,455,982.01 |
| Net cash flows arising from operating activities | 763,320,004.69 | 671,238,471.46 |
| II. Cash flows arising from investing activities: | ||
| Cash received from recovering investment | 902,460,000.00 | 3,091,000,000.00 |
| Cash received from investment income | 112,286,752.95 | 58,097,866.92 |
| Net cash received from disposal of fixed, intangible and other long-term assets | 761,361.40 | 12,166,744.58 |
| Net cash received from disposal of subsidiaries and other units | ||
| Other cash received concerning investing activities | 159,391,407.68 | 383,604,810.26 |
| Subtotal of cash inflow from investing activities | 1,174,899,522.03 | 3,544,869,421.76 |
| Cash paid for purchasing fixed, intangible and other long-term assets | 153,996,525.53 | 172,239,570.50 |
| Cash paid for investment | 1,542,169,149.17 | 2,016,087,040.00 |
| Net cash received from subsidiaries and other units obtained | ||
| Other cash paid concerning investing activities | 262,000.00 | 75,496,976.70 |
| Subtotal of cash outflow from investing activities | 1,696,427,674.70 | 2,263,823,587.20 |
| Net cash flows arising from investing activities | -521,528,152.67 | 1,281,045,834.56 |
| III. Cash flows arising from financing activities | ||
| Cash received from absorbing investment | ||
| Cash received from loans | 1,593,705,833.37 | 1,480,244,977.59 |
| Other cash received concerning financing activities | 208,756,128.75 | 184,297,930.63 |
| Subtotal of cash inflow from financing activities | 1,802,461,962.12 | 1,664,542,908.22 |
| Cash paid for settling debts | 1,197,397,944.82 | 2,249,508,734.86 |
| Cash paid for dividend and profit distributing or interest paying | 103,355,298.99 | 133,129,179.81 |
| Other cash paid concerning financing activities | 143,243,602.49 | 117,503,039.34 |
| Subtotal of cash outflow from financing activities | 1,443,996,846.30 | 2,500,140,954.01 |
| Net cash flows arising from financing activities | 358,465,115.82 | -835,598,045.79 |
| IV. Influence on cash and cash equivalents due to fluctuation in exchange rate | -20,153,571.24 | 6,329,365.90 |
| V. Net increase of cash and cash equivalents | 580,103,396.60 | 1,123,015,626.13 |
| Add: Balance of cash and cash equivalents at the period -begin | 4,017,400,437.18 | 2,894,384,811.05 |
| VI. Balance of cash and cash equivalents at the period -end | 4,597,503,833.78 | 4,017,400,437.18 |
Legal Representative: Wu DinggangPerson in charge of accounting works: Pang HaitaoPerson in charge of accounting institute: Yang Jun
7. Statement of Changes in Owners’ Equity (Consolidated)
This Period
In RMB
| Item | 2020 | ||||||||||||||
| Owners‘ equity attributable to the parent Company | Minority interests | Total owners‘ equity | |||||||||||||
| Share capital | Other equity instrument | Capital reserve | Less: Inventory shares | Other comprehensive income | Reasonable reserve | Surplus reserve | Provision of general risk | Retained profit | Other | Subtotal | |||||
| Preferred stock | Perpetual capital securities | Other | |||||||||||||
| I. Balance at the end of the last year | 1,044,597,881.00 | 2,684,366,619.10 | -18,931,430.36 | 410,786,860.20 | 884,127,743.42 | 5,004,947,673.36 | 107,027,038.74 | 5,111,974,712.10 | |||||||
| Add: Changes of accounting policy | |||||||||||||||
| Error correction of the last period | |||||||||||||||
| Enterprise combine under the same control | |||||||||||||||
| Other | |||||||||||||||
| II. Balance at | 1,044,597,881.00 | 2,684,366,619.10 | -18,931,430.36 | 410,786,860.20 | 884,127,743.42 | 5,004,947,673.36 | 107,027,038.74 | 5,111,974,712.10 | |||||||
| the beginning of this year | |||||||||||||||
| III. Increase/ Decrease in this year (Decrease is listed with ―-‖) | -529,389.98 | 9,929,336.18 | -2,519,653.81 | 5,577,930.23 | -143,373,541.19 | -150,773,990.93 | 894,244.75 | -149,879,746.18 | |||||||
| (i) Total comprehensive income | -2,519,653.81 | -85,565,716.91 | -88,085,370.72 | 5,970,801.05 | -82,114,569.67 | ||||||||||
| (ii) Owners‘ devoted and decreased capital | -529,389.98 | 9,929,336.18 | -10,458,726.16 | 320,119.70 | -10,138,606.46 | ||||||||||
| 1.Common shares invested by shareholders | -5,605.38 | 9,929,336.18 | -9,934,941.56 | -9,934,941.56 | |||||||||||
| 2. Capital invested by holders of other equity instruments | |||||||||||||||
| 3. Amount reckoned into owners equity with share-based payment | |||||||||||||||
| 4. Other | -523,784.60 | -523,784.60 | 320,119.70 | -203,664.90 | |||||||||||
| (III) Profit distribution | 5,577,930.23 | -57,807,824.28 | -52,229,894.05 | -5,396,676.00 | -57,626,570.05 |
| 1. Withdrawal of surplus reserves | 5,577,930.23 | -5,577,930.23 | |||||||||||||
| 2. Withdrawal of general risk provisions | |||||||||||||||
| 3. Distribution for owners (or shareholders) | -52,229,894.05 | -52,229,894.05 | -5,396,676.00 | -57,626,570.05 | |||||||||||
| 4. Other | |||||||||||||||
| (IV) Carrying forward internal owners‘ equity | |||||||||||||||
| 1. Capital reserves conversed to capital (share capital) | |||||||||||||||
| 2. Surplus reserves conversed to capital (share capital) | |||||||||||||||
| 3. Remedying loss with surplus reserve | |||||||||||||||
| 4．Carry-over retained earnings from the defined benefit |
| plans | |||||||||||||||
| 5．Carry-over retained earnings from other comprehensive income | |||||||||||||||
| 6. Other | |||||||||||||||
| (V) Reasonable reserve | |||||||||||||||
| 1. Withdrawal in the report period | |||||||||||||||
| 2. Usage in the report period | |||||||||||||||
| (VI)Others | |||||||||||||||
| IV. Balance at the end of the report period | 1,044,597,881.00 | 2,683,837,229.12 | 9,929,336.18 | -21,451,084.17 | 416,364,790.43 | 740,754,202.23 | 4,854,173,682.43 | 107,921,283.49 | 4,962,094,965.92 |
Last Period
In RMB
| Item | 2019 | ||||||||||||||
| Owners‘ equity attributable to the parent Company | Minority interests | Total owners‘ equity | |||||||||||||
| Share capital | Other equity instrument | Capital reserve | Less: Inventory shares | Other comprehensive income | Reasonable reserve | Surplus reserve | Provision of general risk | Retained profit | Other | Subtotal | |||||
| Preferred stock | Perpetual capital securities | Other | |||||||||||||
| I. Balance at the end of the last year | 1,044,597,881.00 | 2,684,369,598.46 | -18,143,569.26 | 400,673,993.50 | 904,232,582.87 | 5,015,730,486.57 | 119,819,558.59 | 5,135,550,045.16 | |||||||
| Add: Changes of accounting policy | -1,023,250.12 | -2,734,328.91 | -3,757,579.03 | -4,385,295.55 | -8,142,874.58 | ||||||||||
| Error correction of the last period | |||||||||||||||
| Enterprise combine under the same control | |||||||||||||||
| Other | |||||||||||||||
| II. Balance at the beginning of this year | 1,044,597,881.00 | 2,684,369,598.46 | -18,143,569.26 | 399,650,743.38 | 901,498,253.96 | 5,011,972,907.54 | 115,434,263.04 | 5,127,407,170.58 | |||||||
| III. Increase/ Decrease in this year (Decrease is listed with ―-‖) | -2,979.36 | -787,861.10 | 11,136,116.82 | -17,370,510.54 | -7,025,234.18 | -8,407,224.30 | -15,432,458.48 | ||||||||
| (i) Total comprehensive income | -787,861.10 | 56,441,479.14 | 55,653,618.04 | -14,209,434.27 | 41,444,183.77 | ||||||||||
| (ii) Owners‘ devoted and decreased capital | -2,979.36 | -2,979.36 | 8,143,349.03 | 8,140,369.67 |
| 1.Common shares invested by shareholders | 8,140,369.67 | 8,140,369.67 | |||||||||||||
| 2. Capital invested by holders of other equity instruments | |||||||||||||||
| 3. Amount reckoned into owners equity with share-based payment | |||||||||||||||
| 4. Other | -2,979.36 | -2,979.36 | 2,979.36 | ||||||||||||
| (III) Profit distribution | 11,136,116.82 | -73,811,989.68 | -62,675,872.86 | -2,341,139.06 | -65,017,011.92 | ||||||||||
| 1. Withdrawal of surplus reserves | 11,136,116.82 | -11,136,116.82 | |||||||||||||
| 2. Withdrawal of general risk provisions | |||||||||||||||
| 3. Distribution for owners (or shareholders) | -62,675,872.86 | -62,675,872.86 | -2,341,139.06 | -65,017,011.92 | |||||||||||
| 4. Other | |||||||||||||||
| (IV) Carrying forward internal |
| owners‘ equity | |||||||||||||||
| 1. Capital reserves conversed to capital (share capital) | |||||||||||||||
| 2. Surplus reserves conversed to capital (share capital) | |||||||||||||||
| 3. Remedying loss with surplus reserve | |||||||||||||||
| 4．Carry-over retained earnings from the defined benefit plans | |||||||||||||||
| 5．Carry-over retained earnings from other comprehensive income | |||||||||||||||
| 6. Other | |||||||||||||||
| (V) Reasonable reserve | |||||||||||||||
| 1. Withdrawal in the report |
| period | |||||||||||||||
| 2. Usage in the report period | |||||||||||||||
| (VI)Others | |||||||||||||||
| IV. Balance at the end of the report period | 1,044,597,881.00 | 2,684,366,619.10 | -18,931,430.36 | 410,786,860.20 | 884,127,743.42 | 5,004,947,673.36 | 107,027,038.74 | 5,111,974,712.10 |
Legal Representative: Wu DinggangPerson in charge of accounting works: Pang HaitaoPerson in charge of accounting institute: Yang Jun
8. Statement of Changes in Owners’ Equity (Parent Company)
This Period
In RMB
| Item | 2020 | |||||||||||
| Share capital | Other equity instrument | Capital public reserve | Less: Inventory shares | Other comprehensive income | Reasonable reserve | Surplus reserve | Retained profit | Other | Total owners‘ equity | |||
| Preferred stock | Perpetual capital securities | Other | ||||||||||
| I. Balance at the end of the last year | 1,044,597,881.00 | 2,753,017,007.10 | 410,568,694.52 | 945,907,861.41 | 5,154,091,444.03 | |||||||
| Add: Changes of accounting policy | ||||||||||||
| Error correction of the last period | ||||||||||||
| Other | ||||||||||||
| II. Balance at the beginning of this year | 1,044,597,881.00 | 2,753,017,007.10 | 410,568,694.52 | 945,907,861.41 | 5,154,091,444.03 | |||||||
| III. Increase/ Decrease in this year (Decrease is listed with ―-‖) | 120,780.89 | 9,929,336.18 | 5,577,930.23 | -2,028,521.95 | -6,259,147.01 | |||||||
| (i) Total comprehensive income | 55,779,302.33 | 55,779,302.33 | ||||||||||
| (ii) Owners‘ devoted and decreased capital | 120,780.89 | 9,929,336.18 | -9,808,555.29 | |||||||||
| 1.Common shares invested by shareholders | -5,605.38 | 9,929,336.18 | -9,934,941.56 | |||||||||
| 2. Capital invested by holders of other equity instruments | ||||||||||||
| 3. Amount reckoned into owners equity with share-based payment | ||||||||||||
| 4. Other | 126,386.27 | 126,386.27 | ||||||||||
| (III) Profit distribution | 5,577,930.23 | -57,807,824.28 | -52,229,894.05 | |||||||||
| 1. Withdrawal of surplus reserves | 5,577,930.23 | -5,577,930.23 | ||||||||||
| 2. Distribution for owners (or shareholders) | -52,229,894.05 | -52,229,894.05 | ||||||||||
| 3. Other | ||||||||||||
| (IV) Carrying forward internal owners‘ equity | ||||||||||||
| 1. Capital reserves conversed to capital (share capital) | ||||||||||||
| 2. Surplus reserves conversed to capital (share capital) | ||||||||||||
| 3. Remedying loss with surplus reserve |
| 4．Carry-over retained earnings from the defined benefit plans | ||||||||||||
| 5．Carry-over retained earnings from other comprehensive income | ||||||||||||
| 6. Other | ||||||||||||
| (V) Reasonable reserve | ||||||||||||
| 1. Withdrawal in the report period | ||||||||||||
| 2. Usage in the report period | ||||||||||||
| (VI)Others | ||||||||||||
| IV. Balance at the end of the report period | 1,044,597,881.00 | 2,753,137,787.99 | 9,929,336.18 | 416,146,624.75 | 943,879,339.46 | 5,147,832,297.02 |
Last period
In RMB
| Item | 2019 | |||||||||||
| Share capital | Other equity instrument | Capital public reserve | Less: Inventory shares | Other comprehensive income | Reasonable reserve | Surplus reserve | Retained profit | Other | Total owners‘ equity | |||
| Preferred stock | Perpetual capital securities | Other | ||||||||||
| I. Balance at the end of the last year | 1,044,597,881.00 | 2,753,017,007.10 | 400,455,827.82 | 917,567,933.94 | 5,115,638,649.86 | |||||||
| Add: Changes of accounting policy | -1,023,250.12 | -9,209,251.03 | -10,232,501.15 | |||||||||
| Error correction of the last period | ||||||||||||
| Other | ||||||||||||
| II. Balance at the beginning of this year | 1,044,597,881.00 | 2,753,017,007.10 | 399,432,577.70 | 908,358,682.91 | 5,105,406,148.71 | |||||||
| III. Increase/ Decrease in this year (Decrease is listed with ―-‖) | 11,136,116.82 | 37,549,178.50 | 48,685,295.32 | |||||||||
| (i) Total comprehensive income | 111,361,168.18 | 111,361,168.18 | ||||||||||
| (ii) Owners‘ devoted and decreased capital | ||||||||||||
| 1.Common shares invested by shareholders | ||||||||||||
| 2. Capital invested by holders of other equity instruments | ||||||||||||
| 3. Amount reckoned into owners equity with share-based payment | ||||||||||||
| 4. Other | ||||||||||||
| (III) Profit distribution | 11,136,116.82 | -73,811,989.68 | -62,675,872.86 | |||||||||
| 1. Withdrawal of surplus reserves | 11,136,116.82 | -11,136,116.82 | ||||||||||
| 2. Distribution for owners (or shareholders) | -62,675,872.86 | -62,675,872.86 | ||||||||||
| 3. Other | ||||||||||||
| (IV) Carrying forward internal owners‘ equity | ||||||||||||
| 1. Capital reserves conversed to capital (share capital) | ||||||||||||
| 2. Surplus reserves conversed to capital (share capital) | ||||||||||||
| 3. Remedying loss with surplus reserve | ||||||||||||
| 4．Carry-over retained earnings from the defined benefit plans | ||||||||||||
| 5．Carry-over retained earnings from other comprehensive |
| income | ||||||||||||
| 6. Other | ||||||||||||
| (V) Reasonable reserve | ||||||||||||
| 1. Withdrawal in the report period | ||||||||||||
| 2. Usage in the report period | ||||||||||||
| (VI)Others | ||||||||||||
| IV. Balance at the end of the report period | 1,044,597,881.00 | 2,753,017,007.10 | 410,568,694.52 | 945,907,861.41 | 5,154,091,444.03 |
Legal Representative: Wu DinggangPerson in charge of accounting works: Pang HaitaoPerson in charge of accounting institute: Yang Jun
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
I. Company profileChanghong Meiling Co., Ltd (hereinafter referred to as ―the Company‖) ，originally named as Hefei MeilingCo., Ltd. is an incorporated Company established and reorganized by Hefei Meiling Refrigerator GeneralFactory and approved on June 12
th1992 through [WanTiGaiHanZi (1992) No.039] issued by originalMechanism Reform Committee of Anhui Province. On August 30
th1993, through Anhui ProvincialGovernment [Wanzhenmin (1993) No.166] and re-examination of China Securities Regulatory Commission,the Company made first public issue for 30 million A shares and the Company was listed on Oct. 18
th, 1993in Shenzhen Stock Exchange. On August 13
th
, 1996, the Company was approved to issue 100 million Bshares to investors abroad through [ZhengWeiFa (1996) No.26] issued by China Securities RegulatoryCommission. The Company went public in Shenzhen Stock Exchange on August 28
th, 1996.
State-owned Assets Supervision & Administration Commission of the State Council approved such transferswith Document Guozi Chanquan No.253 in 2007 Reply on Matters of Hefei Meiling Group HoldingsCompany Limited Transferring Partial State-owned Ownership, Hefei Meiling Group Holdings CompanyLimited (hereinafter abbreviated as Meiling Group) transferred its holding 37,852,683 shares in 82,852,683state-owned shares of the Company to Sichuan Changhong Electronic Group Co., Ltd (hereinafterabbreviated as Changhong Group), other 45,000,000 shares to Sichuan Changhong Electric Co. Ltd(hereinafter abbreviated as Sichuan Changhong). On Aug 15, 2007, the above ownership was transferred andCleaning Corporation Limited.
On 27 August 2007, State-owned Assets Supervision & Administration Commission of Anhui ProvincialGovernment replied with Document [WGZCQH (2007) No.309] Reply on ―Related Matters of Share MergerReform of Meiling Co., Ltd.‖, agreed the Company‘s ownership split reform plan. The Company madeconsideration that non-tradable share holders deliver 1.5 shares to A share holders per 10 shares, and originalMeiling Group made prepayment 3,360,329 shares for some non-tradable share holders as consideration forsplit reform plan.
On 29 May 2008, concerning 34,359,384 state-owned shares (including 3,360,329 shares paid for othernon-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 totransfer the above said shares to Hefei Xingtai Holding Group Co., Ltd.(―Xingtai Holding Co.,‖) for free. On7 August 2008, the ―Reply of Transfer Freely of Part of the Shares of Hefei Meiling Co., Ltd. held byState-owned shareholders‖ [GZCQ (2007) No. 752] issued by SASAC, agrees the above said transferring.
On October 29, 2008, Changhong Group Company signed Agreement on Equity Transfer of Hefei MeilingCo., Ltd with Sichuan Changhong, in which 32,078,846 tradable A-shares with conditional subscription of
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
the Company (accounting for 7.76% in total shares) held by Changhong Group Company. On 23 December2008, ―Reply of Transfer Freely of Part of the Shares of Hefei Meiling Co., Ltd. held by State-ownedshareholders‖ [GZCQ (2008) No. 1413] issued by SASAC agrees the above said share transferring.
On 24 December 2010, being deliberated and approved in 32
nd
Session of 6
th
BOD and 2
ndExtraordinaryShareholders‘ General Meeting of 2010 as well as approval of document [ZJXP (2010) No. 1715] fromCSRC, totally 116,731,500 RMB ordinary shares (A stock) were offering privately to target investors withissue price of RMB 10.28/share. Capital collecting amounting to RMB 1,199,999,820 after issuing expensesRMB 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 1,061,106,088.5increased. The increasing capital has been verified by Capital Verification Report No.:
［XYZH2010CDA6021］issued from Shinwing CPA Co., Ltd.
On 20 June 2011, the general meeting of the Company considered and approved the 2010 profit distributionplan, namely to distribute cash dividends of RMB0.5 (tax included) plus two shares for every ten shares heldby shareholders to all shareholders, based on the total share capital of 530,374,449 shares as of 31 December2010. The total share capital of the Company upon profit distribution increased to 636,449,338 shares. Thecapital increase was verified by Anhui Huashen Zhengda Accounting Firm with the verification reportWHSZDKYZ (2011) No.141.
On 26 June 2012, the general meeting of the Company considered and approved the 2011 profit distributionand capitalization of capital reserve plan, namely to distribute cash dividends of RMB 0.5 (tax included) plustwo shares for every ten shares to all shareholders capitalized from capital reserve, based on the total sharecapital of 636,449,338 shares as of 31 December 2011. The total share capital of the Company uponimplementation 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 12
th
Session of the 8
thBOD of the company and thefirst extraordinary general meeting in 2016, and approved by the document of China Securities RegulatoryCommission [CSRC License No. (2016) 1396] ―Reply to the approval of non-public offering of shares ofHefei Meiling Co., Ltd.‖, the company has actually raised funds of 1,569,999,998.84 Yuan by non-publicoffering of no more than 334,042,553 new shares at face value of 1 Yuan per share and with issue price noless than RMB 4.70 per share, after deducting the issue costs of 29,267,276.08 Yuan , the net amount ofraised 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 verifiedby No.［XYZH2016CDA40272］capital verification report of Shine Wing Certified Public Accountants
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2020 to 31 December 2020(Unless otherwise specified. RMB for record in the statement)
(LLP).Ended as 31 December 2020, total share capital of the Company amounting to 1,044,597,881 shares withordinary shares in full. Among which, 881,733,881 shares of A-share accounting 84.41% in total shares whileB-share with 162,864,000 shares accounting 15.59% in total shares. Detail share capital as:
| Type of stock | Quantity | Proportion |
| (I)Restricted shares | 10,472,676 | 1.00% |
| 1. State-owned shares | ||
| 2. State-owned legal person‘s shares | 1,653,735 | 0.16% |
| 3. Other domestic shares | 7,551,521 | 0.72% |
| Including: Domestic legal person‘s shares | 3,978,329 | 0.38% |
| Domestic natural person‘s shares | 3,573,192 | 0.34% |
| 4. Foreign shares | 1,267,420 | 0.12% |
| Including: Overseas legal person‘s shares | ||
| Overseas natural person‘s shares | 1,267,420 | 0.12% |
| (II)Unrestricted shares | 1,034,125,205 | 99.00% |
| 1. RMB Ordinary shares | 872,528,625 | 83.53% |
| 2. Domestically listed foreign shares | 161,596,580 | 15.47% |
| 3. Overseas listed foreign shares | ||
| 4. Others | ||
| Total shares | 1,044,597,881 | 100.00% |
The Company belongs to the manufacture of light industry, and engaged in the production and sale ofrefrigerator, freezer and air-conditioner. Unified social credit code of the Company: 9134000014918555XK;Address: No.2163, Lianhua Road, Economy and Technology Development Zone, Hefei City; LegalRepresentative: Wu Dinggang; register capital (paid-in capital): RMB 1,044,597,881; type of company:
limited liability company(joint venture and listed of Taiwan, Hong Kong and Macao) Business Scope: R&D,manufacture and sales of cooling apparatus, air-conditioner, washing machine, water heater, kitchenware,home decoration, bathroom, lamps & lanterns, household & similar appliance, injection plastic machine ofcomputer controlling, plastic products, metalwork, packaging products and decorations as well as theinstallation and technical consultant services. Business of self-produced products, technology export andimport-export of the raw& auxiliary materials, machinery equipment, instrument and technology; departmentsales and transportation (Excluding dangerous chemicals), computer network system integration, intelligentproduct system integration, software development and technical information services, development,production, sales and service of automation equipment and electronic products, sales services of cold chaintransport vehicles and refrigerator and freezer van, development, production, sales and service of cold chaininsulation boxes, research and development, production, sales and service of cold storage, commercialfreezer chain display cabinets, commercial cold chain products. (Projects that require approval in accordance
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2020 to 31 December 2020(Unless otherwise specified. RMB for record in the statement)
with the law can only be operated after approval by relevant departments)II. Scope of consolidated financial statementIn the reporting period, the consolidated financial statements of the Company cover 31 subsidiaries,including Sichuan Changhong Air-conditioner Co., Ltd, Zhongshan Changhong Electric Co., Ltd. andZhongke Meiling Cryogenic Technology Co., Ltd. etc. Compared with the previous year, two newsubsidiaries were included in the consolidated statement scope during the reporting period, that isCH-Meiling International (Philippines) Inc. and Hefei Changhong Meiling Life Electric Co., Ltd. And thesubsidiary Guangxi Huidian Household Appliances Co., Ltd. and Changmei Technology Co., Ltd. arereduced for clearing off. In addition, the subsidiaries Chengdu Meiling Electrical Marketing Co., Ltd.,Fuzhou Meiling Electrical Marketing Co., Ltd., Nanjing Meiling Electrical Marketing Co., Ltd., HangzhouMeiling Electrical Marketing Co., Ltd., Shanghai Meiling Electrical Marketing Co., Ltd., and BeijingMeiling Electrical Marketing Co., Ltd. were decreased due to the merger.More details can be seen in the report ―VII. Changes in the scope of the merger‖ and ―XIII. Equity in otherentities‖carry in the Note
III. Basis for preparation of financial statement
1. Basis for preparation
The financial statements of the Company were prepared in accordance with the actual transactions andproceedings, and relevant regulation of Accounting Standards for Enterprise released by the Ministry ofFinance, and was on the basis of sustainable operation, and the accounting policy and estimation stated in the―IV. Significant Accounting Policy and Accounting Estimation‖
2.Continuous operation
The Company recently has a history of profitability operation and has financial resources supporting, andprepared the financial statement on basis of going concern is reasonable.
IV. Significant Accounting Policy and accounting Estimation
1. Statement on observation of accounting standards for enterprise
The financial statement prepared by the Company applies with the requirements of Accounting Standard forEnterprise, and reflects the financial condition, operational achievements and cash flow of the Companyeffectively and completely.
2. Accounting period
The accounting period of the Company is the calendar date from 1 January to 31 December.
3. Operation cycle
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
Operation cycle of the Company was 12 months, and it is the standard of flow classification for assets andliabilities.
4. Standard currency for accounting
The Company takes RMB as the standard currency for accounting.
5. Accountant arrangement method of business combination under common control and not under commoncontrolAs acquirer, the Company measures the assets and liabilities acquired through business combination undercommon control at their carrying values as reflected in the consolidated financial statement of the ultimatecontroller as of the combination date. Capital reserve shall be adjusted in respect of any difference betweencarrying value of the net assets acquired and carrying value of the combination consideration paid. In casethat capital reserve is insufficient to offset, the Company would adjust retained earnings.
The acquiree‘s net identifiable assets, liabilities or contingent liabilities acquired through businesscombination not under common control shall be measured at fair value as of the acquisition date. The cost ofcombination represents the fair value of the cash or non-cash assets paid, liabilities issued or committed andequity securities issued by the Company as at the date of combination in consideration for acquiring thecontrolling power in the acquiree, together with the sum of any directly related expenses occurred duringbusiness 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 thecombination 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 interestin the fair value of the acquiree‘s identifiable net assets, the Company shall firstly make further review on thefair values of the net identifiable assets, liabilities or contingent liabilities acquired as well as the fair value ofthe non-cash assets portion of combination consideration or the equity securities issued by the Company. Incase that the Company finds the cost of combination is still lower than the acquirer‘s interest in the fair valueof the acquiree‘s identifiable net assets after such further review, the difference is recognized innon-operating income for the current period when combination occurs.
6. Measures on Preparation of Consolidated Financial Statements
The Company shall put all the subsidiaries controlled and main body structured into consolidated financialstatements.
Any difference arising from the inconformity of accounting year or accounting policies between thesubsidiaries and the Company shall be adjusted in the consolidated financial statements.
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2020 to 31 December 2020(Unless otherwise specified. RMB for record in the statement)
All the material inter-company transactions, non-extraordinary items and unrealized profit within thecombination scope are written-off when preparing consolidated financial statement. Owners‘ equity ofsubsidiary not attributable to parent company and current net gains and losses, other comprehensive incomeand total comprehensive income attributable to minority shareholders are recognized as non-controllinginterests, minority interests, other comprehensive income attributable to minority shareholders and totalcomprehensive income attributable to minority shareholders in consolidated financial statement respectively.
As for subsidiary acquired through business combination under common control, its operating results andcash flow will be included in consolidated financial statement since the beginning of the period whencombination occurs. When preparing comparative consolidated financial statement, the relevant items inprevious years financial statement shall be adjusted as if the reporting entity formed upon combination hasbeen existing since the ultimate controller commenced relevant control.
As for equity interests of the investee under common control acquired through various transactions whicheventually formed business combination, the Company shall supplement disclosure of the accountingtreatment in consolidated financial statement in the reporting period when controlling power is obtained. Forexample, as for equity interests of the investee under common control acquired through various transactionswhich eventually formed business combination, adjustments shall be made as if the current status had beenexisting when the ultimate controller commenced control in connection of preparing consolidated financialstatement; in connection with preparing comparative statement, the Company shall consolidate the relevantassets and liabilities of the acquiree into the Company‘s comparative consolidated financial statement to theextent not earlier than the timing when the Company and the acquiree are all under control of the ultimatecontroller, and the net assets increased due to combination shall be used to adjust relevant items underowners‘ equity in comparative statement. In order to prevent double computation of the value of theacquiree‘s net assets, the relevant profits and losses, other comprehensive income and change of other netassets recognized during the period from the date when the Company acquires original equity interests andthe date when the Company and the acquiree are all under ultimate control of the same party (whichever islater) to the date of combination in respect of the long-term equity investment held by the Company beforesatisfaction of combination shall be utilized to offset the beginning retained earnings and current gains andlosses in the period as the comparative financial statement involves, respectively.
As for subsidiary acquired through business combination not under common control, its operating results andcash 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 financialstatement based on the fair value of the various identifiable assets, liabilities or contingent liabilitiesrecognized as of the acquisition date.
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2020 to 31 December 2020(Unless otherwise specified. RMB for record in the statement)
As for equity interests of the investee not under common control acquired through various transactions whicheventually formed business combination, the Company shall supplement disclosure of the accountingtreatment in consolidated financial statement in the reporting period when controlling power is obtained. Forexample, as for equity interests of the investee not under common control acquired through varioustransactions which eventually formed business combination, when preparing consolidated financial statement,the Company would re-measure the equity interests held in the acquiree before acquisition date at their fairvalue as of the acquisition date, and any difference between the fair value and carrying value is included incurrent investment income. in case that the equity interests in acquiree held by the Company before therelevant 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 equityinterests 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 establishedbenefit 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 withoutlosing control rights over the subsidiary, the difference between the proceeds from disposal of interests andthe decrease of the shared net assets of the subsidiary is adjusted to capital premium (share premium). In casecapital 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 wouldre-measure the remaining equity interests at their fair value as of the date when the Company loses controlover the investee when preparing consolidated financial statement. The sum of consideration received fromdisposal of equity interest and fair value of the remaining equity interest, less the net assets of the originalsubsidiary attributable to the Company calculated based on the original shareholding proportion since theacquisition date or the date then consolidation commences, is included in investment gains and losses for theperiod when control is lost, meanwhile to offset goodwill. Other comprehensive income related to equityinterest investment in original subsidiaries is transferred into current investment gains and losses upon lost ofcontrol.
If the disposal of the equity investment of a subsidiary is realized through multiple transactions until loss ofcontrol and is a package deal, the accounting treatment of these transactions should be dealt with as onetransaction of disposal of the subsidiary until loss of control. However, before the Company loses totalcontrol of the subsidiary, the differences between the actual disposal price and the share of the net assets ofthe subsidiary disposed of in every transaction should be recognized as other comprehensive income in theconsolidated financial statements, and transferred to profit or loss when losing control.
7. Accounting treatment for joint venture arrangement and joint controlled entityThe joint venture arrangement of the Company consists of joint controlled entity and joint venture. As for
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2020 to 31 December 2020(Unless otherwise specified. RMB for record in the statement)
jointly controlled entity, the Company determines the assets held and liabilities assumed separately as a partyto the jointly controlled entity, recognizes such assets and liabilities according to its proportion, andrecognizes 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 notconstitute business activity, part of the gains and losses arising from such transaction attributable to otherparticipators of the jointly controlled entity is only recognized.
8. Cash and cash equivalents
Cash in the cash flow statement comprises the Group‘s cash on hand and deposits that can be readilywithdrawn on demand. Cash equivalents are short-term, highly liquid investments held by the Group, thatare readily convertible to known amounts of cash and which are subject to an insignificant risk of changes invalue, including but not limited to the followings which meet the aforesaid conditions: debt investmentmatured within three months upon the acquisition date, bank time deposit which can be early withdrew byserving a notice and transferrable deposit receipt, etc. for time deposit which can not be used for payment atany time, it would be note recognized as cash; while if can be used for such purpose, it would be recognizedas cash. Guarantee deposit over three months in other monetary capital shall not be recognized as cashequivalents, and those less than three months are recognized as cash equivalents.
9. Foreign currency business and foreign currency financial statement conversion
(1) Foreign currency business
As for the foreign currency business, the Company converts the foreign currency amount into RMB amountpursuant to the spot exchange rate as of the business day. As at the balance sheet date, monetary itemsexpressed by foreign currency are converted into RMB pursuant to the spot exchange rate as of the balancesheet date. The conversion difference occurred is recorded into prevailing gains and losses, other than thedisclosure which is made according to capitalization rules for the exchange difference occurred from thespecial foreign currency borrowings borrowed for constructing and producing the assets satisfying conditionof capitalization. As for the foreign currency non-monetary items measured by fair value, the amount is thenconverted into RMB according to the spot exchange rate as of the confirmation day for fair value. And theconversion difference occurred during the procedure is recorded into prevailing gains and losses directly aschange of fair value. As for the foreign currency non-monetary items measured by historical cost, conversionis 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 foreigncurrency 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 incomestatement then are also converted pursuant to the spot exchange rate of transaction day. Difference arisingfrom the aforementioned conversions shall be listed separately in items of owners‘ equity. Spot exchange rateas of the occurrence date of cash flow is adopted for conversion of foreign currency cash flow. The amount
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020(Unless otherwise specified. RMB for record in the statement)
of cash affected by exchange rate movement shall be listed separately in cash flow statement.
10. Financial assets and liabilities
A financial asset or liability is recognized when the group becomes a party to a financial instrument contract.The financial assets and financial liabilities are measured at fair value on initial recognition. For the financialassets and liabilities measured by fair value and with variation reckoned into current gains/losses, the relatedtransaction expenses are directly included in current gains or losses; for other types of financial assets andliabilities, the related transaction costs are included in the initial recognition amount.
(1) Method for determining the fair value of financial assets and financial liabilitiesFair value refers to the price that a market participant can get by selling an asset or has to pay for transferringa liability in an orderly transaction that occurs on the measurement date. For a financial instrument having anactive 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, industryassociations, pricing services, etc., and represent the prices of market transactions that actually occur in anarm's length transaction. If there is no active market for a financial instrument, the Company uses valuationtechniques to determine its fair value. Valuation techniques include reference to prices used in recent markettransactions by parties familiar with the situation and through voluntary trade, and reference to current fairvalues of other financial instruments that are substantially identical, discounted cash flow methods, andoption pricing models.
(2) Category and measurement on financial assets
The group divided the financial assets as the follow while initially recognized: the financial assets measuredat amortized cost; the financial assets measured at fair value and whose changes are included in othercomprehensive income; and the financial assets measured by fair value and with variation reckoned intocurrent gains/losses. The classification of financial assets depends on the business model that the Group'senterprises 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 thefollowing conditions: The group's business model for managing the financial assets is to collect contractualcash flows; the contractual terms of the financial assets stipulate that cash flow generated on a specific date isonly 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 thegains or losses arising from amortization or impairment are included in current profits and losses. Suchfinancial assets mainly include monetary funds, notes receivable, accounts receivable, other receivables, debtinvestment and long-term receivables, and so on. The Group lists the debt investment and long-termreceivables due within one year (including one year) from the balance sheet date as non-current assets due
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2020 to 31 December 2020(Unless otherwise specified. RMB for record in the statement)
within one year, and lists the debt investment with time limit within one year (including one year) whenacquired as other current assets.
2) Financial assets measured at fair value and whose changes are included in other comprehensive incomeFinancial assets are classified as financial assets measured at fair value and whose changes are included inother comprehensive income when they also meet the following conditions: The Group's business model formanaging the financial assets is targeted at both the collection of contractual cash flows and the sale offinancial assets; the contractual terms of the financial asset stipulate that the cash flow generated on aspecific 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 isamortized by using the effective interest method and is recognized as interest income or expenses. Except theimpairment losses and the exchange differences of foreign currency monetary financial assets are recognizedas the current profits and losses, the changes in the fair value of such financial assets are recognized as othercomprehensive income until the financial assets are derecognized, the accumulated gains or losses aretransferred to the current profits and losses. Interest income related to such financial assets is included in thecurrent profit and loss. Such financial assets are listed as other debt investments, other debt investments duewithin one year (including one year) from the balance sheet date are listed as non-current assets due withinone year; and other debt investments with time limit within one year (including one year) when acquired arelisted as other current assets.
3) Financial assets measured at fair value and whose changes are included in current gains/lossesFinancial assets except for the above-mentioned financial assets measured at amortized cost and financialassets measured at fair value and whose changes are included in other comprehensive income are classifiedas financial assets measured at fair value and whose changes are included in current profits and losses, whichadopt fair value for subsequent measurement and all changes in fair value are included in current profits andlosses. The Group classifies non-trading equity instruments as financial assets measured at fair value andwhose changes are included in current profits and losses. Such financial assets are presented as tradingfinancial assets, and those expire after more than one year and are expected to be held for more than one yearare 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 assetsmeasured at amortized cost and financial assets measured at fair value and whose changes are included inother comprehensive income and recognize the provisions for loss.Credit loss refers to the difference between all contractual cash flows that the Company discounts at theoriginal actual interest rate and are receivable in accordance with contract and all cash flows expected to bereceived, that is, the present value of all cash shortages. Among them, for the purchase or source of financialassets that have suffered credit impairment, the Company discounts the financial assets at the actual interest
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2020 to 31 December 2020(Unless otherwise specified. RMB for record in the statement)
rate adjusted by credit.The Group considers all reasonable and evidenced information, including forward-looking information,based on credit risk characteristics. When assessing the expected credit losses of receivables, they areclassified according to the specific credit risk characteristics as follows:
1) For receivables and contractual assets and lease receivables (including significant financing componentsand not including significant financing components), the Group measures the provisions for loss based on theamount of expected credit losses equivalent to the entire duration.
①Evaluate expected credit losses based on individual items: credit notes receivable (including acceptedletters of credit) of financial institutions in notes receivable and accounts receivable, and related partypayments (related parties under the same control and significant related parties); dividends receivable,interest receivable, reserve funds, investment loans, cash deposits (including warranty), government grants(including dismantling subsidies) in other receivables, and receivables with significant financing components(i.e. long-term receivables);
②Evaluate expected credit losses based on customer credit characteristics and ageing combinations: inaddition to evaluating expected credit losses based on individual items, the Group evaluates the expectedcredit losses of notes receivable and accounts receivable and other receivables financial instruments based oncustomer credit characteristics and ageing combinations.The Group considers all reasonable and evidenced information, including forward-looking information, whenassessing expected credit losses. When there is objective evidence that its customer credit characteristics andageing combination cannot reasonably reflect its expected credit loss, the current value of the expected futurecash flow is measured by a single item, and the cash flow shortage is directly written down the book balanceof the financial asset.
2) Assess the expected credit losses on a case-by-case basis for other assets to which the financialinstruments are impaired, such as the loan commitments and financial guarantee contracts that are notmeasured at fair value through profit or loss, financial assets measured at fair value and whose changes arerecognized in other comprehensive income; other financial assets measured at amortized cost (such as othercurrent 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 contractrights of collecting cash flow of the financial assets is terminated; ②The financial assets has already beentransferred, and the Company has transferred almost all risks and remunerations of financial assets ownershipto the transferee; ③The financial assets has been transferred, even though the Company has neithertransferred nor kept almost all risks and remunerations of financial assets ownership, the Company has givenup controlling the financial assets.
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2020 to 31 December 2020(Unless otherwise specified. RMB for record in the statement)
If the enterprise has neither transferred or kept almost all risks and remunerations of financial assetsownership, nor given up controlling the financial assets, then confirm the relevant financial assets accordingto how it continues to involve into the transferred financial assets and confirm the relevant liabilitiesaccordingly. The extent of continuing involvement in the transferred financial assets refers to the level of riskarising 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 betweenthe book value of the transferred financial assets and the sum of consideration received from transfer andfluctuation accumulated amount of fair value formerly reckoned in other consolidated income in the currentprofits and losses.
If part transfer of financial assets satisfies the demand for derecognition, apportion the integral book value ofthe transferred financial assets between the derecognized parts and the parts not yet derecognized accordingto each relative fair value, and reckon the balance between the sum of consideration received from transferand fluctuation accumulated amount of fair value formerly reckoned in other consolidated income that shouldbe apportioned to the derecognized parts and the apportioned aforementioned carrying amounts in the currentprofits and losses.When the Group sells financial assets adopting the mode of recourse, or endorses and transfers its financialassets, it is necessary to ensure whether almost all the risks and rewards of ownership of the financial assetshave been transferred. If almost all the risks and rewards of ownership of the financial assets have beentransferred to the transferee, the financial assets shall be derecognized; if almost all the risks and rewards ofownership of the financial assets are retained, the financial assets shall not be derecognized; if almost all therisks and rewards of ownership of the financial assets are neither transferred nor retained, continue to judgewhether the company retains control over the assets, and conduct accounting treatment according to theprinciples 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 intocurrent gains/losses and other financial liability at initially measurement. Financial liability shall be initiallyrecognized and measured at fair value. As for the financial liability measured by fair value and with variationreckoned into current gains/losses, relevant trading costs are directly reckoned into current gains/losses whileother financial liability shall be reckoned into the initial amount recognized.
① the financial liability measured by fair value and with variation reckoned into current gains/lossesThe conditions to be classified as trading financial liabilities and as financial liabilities designated to bemeasured at fair value and whose changes are included in current profit or loss at the initial recognition are
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2020 to 31 December 2020(Unless otherwise specified. RMB for record in the statement)
consistent with the conditions to be classified as trading financial assets and as financial assets designated tobe 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 aresubsequently measured at fair value, and the gain or loss arising from changes in fair value and the dividendsand 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 tothe equity instruments that are not quoted in an active market and whose fair value cannot be reliablymeasured, and the subsequent measurement is carried out in accordance with the cost. Other financialliabilities are subsequently measured at amortized cost by using the effective interest method. The gain orloss arising from derecognition or amortization is included in current profit or loss.
③Financial guarantee contract
The financial guarantee contract of a financial liability which is not designated to be measured at fair valuethrough profit or loss is initially recognized at fair value, and its subsequent measurement is carried out bythe higher one between the amount confirmed in accordance with the Accounting Standards for BusinessEnterprises No. 13 — Contingencies after initial recognition and the balance after deducting the accumulatedamortization amount determined in accordance with the principle of Accounting Standards for BusinessEnterprises 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 currentobligation of the financial liability has been discharged. The Group (debtor) and the creditor sign anagreement to replace the existing financial liabilities with new financial liabilities, and if the contract termsof the new financial liabilities are substantially different from the existing financial liabilities, terminated forrecognized the existing financial liabilities and at the same time recognize the new financial liabilities. If thefinancial liability is terminated for recognized in whole or in part, the difference between the carryingamount of the part that terminated for recognized and the consideration paid (including the transferrednon-cash assets or the assumed new financial liabilities) is included in current profits and losses.
(7) Balance-out between the financial assets and liabilities
As the Group has the legal right to balance out the financial liabilities by the net or liquidation of thefinancial assets, the balance-out sum between the financial assets and liabilities is listed in the balance sheet.In addition, the financial assets and liabilities are listed in the balance sheet without being balanced out.
(8) Derivatives and embedded derivatives
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020(Unless otherwise specified. RMB for record in the statement)
Derivatives are initially measured at fair value on the signing date of the relevant contract, and aresubsequently measured at fair value. Except for derivatives that are designated as hedging instruments andare highly effective in hedging, the gains or losses arising from changes in fair value will be determinedbased on the nature of the hedging relationship in accordance with the requirements of the hedge accountingand be included in the period of profit and loss, other changes in fair value of derivatives are included incurrent profits and losses. For a hybrid instrument that includes an embedded derivative, if it is notdesignated as a financial asset or financial liability measured at fair value and whose changes are included incurrent profit or loss, the embedded derivative does not have a close relationship with the main contract interms of economic characteristics and risks, and as with embedded derivatives, if the tools existing separatelyconform to the definition of the derivatives, the embedded derivatives are split from the hybrid instrumentsand are treated as separate derivative financial instruments. If it is not possible to measure the embeddedderivative separately at the time of acquisition or subsequent balance sheet date, the whole hybrid instrumentis designated as a financial asset or financial liability measured at fair value and whose changes are includedin current profits and losses.
(9) Equity instrument
The equity instrument is the contract to prove the holding of the surplus stock of the assets with thededuction of all liabilities in the Group. The Company issues (including refinancing), repurchases, sells orcancels equity instruments as movement of equity. No fair value change of equity instrument would berecognized 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) reduceshareholders' equity.
11. Inventory
Inventories of the Company principally include raw materials, stock goods; work in process, self-madesemi-finished product, materials consigned to precede, low-value consumption goods, goods in transit, goodsin process, mould and contract performance costs.
Perpetual inventory system is applicable to inventories. For daily calculation, standard price is adopted forraw materials, low-value consumption goods and stock goods. Switch-back cost of the current month isadjusted by distribution price difference at the end of the month, the dispatched goods will share the costdifferences of inventory while in settlement the business income; and low-value consumption goods iscarried forward at once when being applied for use and the mould shall be amortized within one year afterreceipt.Inventory at period-end is valued by the Lower-of-value between the cost and net realizable value. Theprovision for inventory depreciation shall be drawn from the difference between the book cost of a single
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2020 to 31 December 2020(Unless otherwise specified. RMB for record in the statement)
inventory item and its net realizable value, and the provision for inventory depreciation shall be recorded intothe current profit and loss.
12. Contract assets
(1) Confirmation methods and standards of contract assets
Contract assets refer to the right of the Company to receive consideration after transferring goods tocustomers, and this right depends on factors other than the passage of time. If the Company sells two clearlydistinguishable commodities to a customer and has the right to receive payment because one of thecommodities 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 assetsFor the determination method for expected credit loss of contract assets, please refer to the above-mentioned
10. (3) Accounting treatment methods for financial instrument impairment. The Company calculates theexpected credit loss of contract assets on the balance sheet date, if the expected credit loss is greater than thebook value of provision for impairment of contract assets, the Company shall recognize the difference as animpairment 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 oppositeaccounting records.If the Company actually incurs credit losses and determines that the relevant contract assets cannot berecovered, 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 theprovision for loss that has been withdrawn, the "asset impairment loss" is debited based on the difference.
13. Contract cost
(1) The method of determining the amount of assets related to the contract cost
The Company‘s assets related to contract costs include contract performance cost and contract acquisitioncost.The contract performance cost is the cost incurred by the Company for the performance of the contract, thosethat do not fall within the scope of other accounting standards and meet the following conditions at the sametime are recognized as as an asset as the contract performance cost: the cost is directly related to a current orexpected 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 costincreases the Company's future resources for fulfilling the contract's performance obligations; this cost isexpected to be recovered.
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2020 to 31 December 2020(Unless otherwise specified. RMB for record in the statement)
Contract acquisition cost is the incremental cost incurred by the Company to obtain the contract, those thatare expected to be recovered are recognized as the contract acquisition cost as an asset; if the assetamortization 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‘tobtain the contract. The Company‘s expenses (such as travel expenses incurred regardless of whether thecontract is obtained) incurred for obtaining the contract other than the incremental costs expected to berecovered are included in the current profits and losses when they are incurred, except those are clarified tobe 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 ofcommodity 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 determinesthe impairment loss of other assets related to the contract that are confirmed in accordance with otherrelevant accounting standards for business enterprises; then based on the difference between the book valueof which is higher than the remaining consideration that the Company is expected to obtain due to thetransfer 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 behigher than the book value of the asset, the original provision for asset impairment shall be reversed andincluded in the current profit and loss, but the book value of the asset after the reversal shall not exceed thebook value of the asset on the reversal date under the assumption that no impairment provision is made.
14. Long-term equity investment
Long-term equity investment of the Company is mainly about investment in subsidiary, investment inassociates and investment in joint-ventures.For long-term equity investments acquired through business combination under common control, the initialinvestment cost shall be the acquirer‘s share of the carrying amount of net assets of the acquiree as of thecombination date as reflected in the consolidated financial statement of the ultimate controller. If the carryingamount of net assets of the acquiree as of the combination date is negative, the investment cost of long-termequity investment shall be zero. For long-term equity investment acquired through business combination notunder 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 oflong-term equity investment acquired through cash payment, for which the actual payment for the purchase
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
shall be investment cost; If Long-term equity investments are acquired by issuing equity securities, fair valueof issuing equity investment shall be investment cost; for Long-term equity investments which are investedby investors, the agreed price in investment contract or agreement shall be investment cost; and for long-termequity 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 injoint-ventures and associates by equity method.
When calculated by cost method, long-term equity investment is priced according to its investment cost, andcost of the investment is adjusted when making additional investment or writing off investment; Whencalculated by equity method, current investment gains and losses represent the proportion of the net gainsand losses realized by the invested unit in current year attributable to or undertaken by the investor. When theCompany is believed to enjoy proportion of net gains and losses of invested unit, gains and lossesattributable to the Company according to its shareholding ratio is to computer out according to theaccounting policy and accounting period of the Company, on the basis of the fair value of variousrecognizable assets of the invested unit as at the date of obtaining of the investment, after offset of gains andlosses arising from internal transactions with associates and joint-ventures, and finally to make confirmationafter adjustment of net profit of the invested unit. Confirmation on gains and losses from the long-term equityinvestment in associates and joint-ventures held by the Company prior to the first execution day, could onlystand up with the precedent condition that debit balance of equity investment straightly amortized accordingto its original remaining term has already been deducted, if the aforementioned balance relating to theinvestment do exist.
In case that investor loses joint control or significant influence over investee due to disposal of part equityinterest investment, the remaining equity interest shall be calculated according to Accounting Standards forBusiness Enterprise No.22-Recognition and Measurement of Financial Instrument. Difference between thefair value of the remaining equity interest as of the date when loss of joint control or significant influence andthe carrying value is included in current gains and losses. Other comprehensive income recognized in respectof the original equity interest investment under equity method should be treated according to the same basiswhich the investee adopts to directly dispose the relevant assets or liabilities when ceasing adoption of equitymethod calculation; and also switches to cost method for calculating the long-term equity investments whichentitles the Company to have conduct control over the invested units due to its additional investments; andswitches to equity method for calculating the long-term equity investments which entitles the Company toconduct common control or significant influence, while no control over the invested units due to itsadditional investments, or the long-term equity investments which entitles the Company with no control overthe 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
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
obtaining shall be recorded into current investment income. When disposing long-term equity investmentwhich is calculated by equity method, the proportion originally recorded in owners‘ equity shall betransferred to current investment income according to relevant ratio, except for that other movements ofowners‘ equity excluding net gains and losses of the invested units shall be recorded into owners‘ equity.
15. Investment real estate
The investment real estate of the Company includes leased houses and buildings, and is accounted value byits cost. Cost of purchased-in investment real estate consists of payment for purchase, relevant taxes andother expenditure which is attributable to the assets directly; while cost of self-built investment real estate isformed with all necessary expenditures occurred before construction completion of the assets arriving at theestimated utilization state.Consequent measurement of investment estate shall be measured by cost method. Depreciation is providedwith average service life method pursuant to the predicted service life and net rate of salvage value. Thepredicted service life and net rate of salvage value and annual depreciation are listed as follows:
| Category | Depreciation term(Year) | Predicted rate of salvage value (%) | Depreciation rate per 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 assetscommencing from the date of such turning. And when self-used real estate turns to be leased out for rental oradditional capital, the fixed assets or intangible assets shall switch to investment real estate commencingfrom the date of such turning. In situation of switch, the carrying value before the switch shall be deemed asthe credit value after the switch.
When investment real estate is disposed, or out of utilization forever and no economic benefit would bepredicted to obtain through the disposal, the Company shall terminate recognition of such investment realestate. The amount of income from disposal, transfer, discarding as scrap or damage of investment real estateafter deducting the asset‘ s carrying value and relevant taxation shall be written into current gains and losses.
16.Fixed assets
Fixed assets of the Company are tangible assets that are also held for the production of goods, provision ofservices, rental or management of operations, have a useful life of more than one year and have a unit valueof more than 2,000 yuan.
Their credit value is determined on the basis of the cost taken for obtaining them. Of which, cost ofpurchased-in fixed assets include bidding price and import duty and relevant taxes, and other expenditurewhich occurs before the fixed assets arrive at the state of predicted utilization and which could be directlyattributable to the assets; while cost of self-built fixed asset is formed with all necessary expenditures
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
occurred before construction completion of the assets arriving at the estimated utilization state; credit valueof the fixed assets injected by investors is determined based on the agreed value of investment contracts oragreements, while as for the agreed value of investment contracts or agreements which is not fair, it shalltake its fair value as credit value; and for fixed assets which are leased in through finance leasing, creditvalue is the lower of fair value of leased assets and present value of minimized leasing payment as at thecommencing date of leasing.
Consequent expenditure related to fixed assets consists of expenditures for repair and update reform. Forthose 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 meetingrequirements for recognization of fixed assets, they shall be accounted in current gains and losses as long asthey occur. When fixed asset is disposed, or no economic benefit would be predicted to obtain throughutilization or disposal of the asset, the Company shall terminate recognization of such fixed asset. Theamount of income from disposal, transfer, discarding as scrap or damage of fixed asset after deducting theasset‘ 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 depreciatedwhile continuing to use. It adopts average service life method for withdrawing depreciation which is treatedrespectively 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:
| No. | Category | Depreciation term | Predicted rate of salvage value | Depreciation rate per 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 salvagevalue and depreciation method at each year-end. Any change will be treated as accounting estimation change.
17. Construction in progress
On the day when the construction in progress reaches the expected usable state, it will be carried forward tofixed assets according to the estimated value based on the construction budget, cost or actual constructioncost, and depreciation will be accrued from the next month, and the difference in the original value of fixedassets shall be adjusted after the completion of the final accounting procedures.
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2020 to 31 December 2020(Unless otherwise specified. RMB for record in the statement)
18. Borrowing expense
For the incurred borrowing expense that can be directly attributable to fixed assets, investment real estate,and inventory which require more than one year of purchase, construction or production activities to reachthe intended usable or saleable state, the capitalization begins when the asset expenditure has occurred, theborrowing expense have occurred, and the acquisition, construction or production activities necessary tomake the asset reach the intended usable or saleable state have begun; when the acquisition, construction orproduction of assets that meet the capitalization conditions reaches the intended usable or saleable state, stopthe capitalization, the borrowing expense incurred thereafter are included in the current profit and loss. If anasset that meets the capitalization conditions is abnormally interrupted during the acquisition, construction orproduction process, and the interruption lasts for more than 3 months, the capitalization of borrowingexpense 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 currentperiod after deduction of the interest income arising from unutilized borrowing capital which is saved inbanks or deduction of investment income obtained from temporary investment; For recognization ofcapitalized amount of common borrowing, it equals to the weighted average of the assets whose accumulatedexpense or capital disburse is more than common borrowing times capitalization rate of occupied commonborrowing. Capitalization rate is determined according to weighted average interest rate of commonborrowing.
19. Intangible assets
The Company‘s intangible assets include land use rights, trademark rights and non-proprietary technology,which are measured at actual cost at the time of acquisition, of which, acquired intangible assets are stated atactual cost based on the price actually paid and related other expenditure; the actual cost of an intangibleasset 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 isdetermined at fair value.The land use rights are amortized equally over the period from the commencement date of the grant; theremaining intangible assets are amortized equally over the shortest of the estimated useful life, thecontractual beneficial life and the effective life as prescribed by law. Amortization is charged to the cost ofthe relevant asset and to current profit or loss in accordance with the object of its benefit. The estimateduseful life and amortization method for intangible assets with finite useful lives are reviewed at the end ofeach year and any changes are treated as changes in accounting estimates.
20. Research and development
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
As for expenditure for research and development, the Company classifies it into expenditure on researchphase and development phase, based on nature of the expenditure and that whether the final intangible assetsformed by research & development is of great uncertainty. Expenditure arising during research should berecorded in current gains and losses upon occurrence; expenditure arising during development is confirmedas intangible assets when satisfying the following conditions:
-Completions of the intangible assets make it available for application or sell in technology;-Equipped with plan to complete the intangible asset and apply or sell it;-There is market for products produced with this intangible asset or the intangible asset itself;-Have sufficient technology, financial resource and other resources to support development of the intangibleassets, and have ability to apply or sell the assets;-Expenditure attributable to development of the intangible assets could be reliable measured.
Expenditure arising during development not satisfying the above conditions shall be recorded in current gainsand losses upon occurrence. Development expenditure which had been recorded in gains and losses inprevious period would not be recognized as assets in later period. Expenditure arising during developmentphase which has been starting capitalization is listed in balance sheet as development expenditure, andtransferred to intangible assets since the project reaches at predicted utilization state.
21. Impairment of long-term assets
As at each balance sheet date, the Company has inspection on fixed assets, construction in process andintangible 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 uncertainservice 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 theassets group or assets group portfolio where such asset belongs to.After impairment test, if the carrying value exceeds the recoverable amount of the asset, the balance isrecognized as impairment loss. As long as impairment loss of the aforementioned assets is recognized, itcouldn‘t be switched back in later accounting periods. Recoverable amount of assets refers to the higher offair value of assets net disposal expense and present value of predicted cash flow of the asset.
Indications for impairment are as follows:
(1) Market value of asset drops a lot in current period, the drop scope is obviously greater than the predicteddrop 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
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2020 to 31 December 2020(Unless otherwise specified. RMB for record in the statement)
have significant change in current or recent periods, which brings negative influence to enterprise;
(3) Market interest rate or returning rate of other market investments have risen in current period, whichbrings influence in calculating discount rate of present value of predicted future cash flow of assets, whichleads 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 thanprediction, such as that net cash flow created by asset or operation profit (or loss) realized by asset is greatlylower (or higher) than the predicted amount;
(7) Other indications showing possible impairment of assets
22. Contract liability
Contract liabilities reflect the Company's obligation to transfer goods to customers for consideration receivedor receivable from customers. Before the Company transfers the goods to the customer, if the customer haspaid the contract consideration or the Company has obtained the right to unconditionally receive the contractconsideration, the contract liability is recognized based on the received or receivable amount at the earliertime point of the actual payment by the customer and the payment due.
23. Goodwill
Goodwill represents balance between equity investment cost or business combination cost under no commoncontrol 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 goodwillrelating to associates and joint-ventures is included in carrying value of long-term equity investment.
24. Staff remuneration
Employee benefits mainly include all kinds of remuneration incurred in exchange for services rendered byemployees 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-termemployee welfare.
Short-term remuneration includes: staff salary, bonus, allowances and subsidies, staff benefits, socialinsurances 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
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
scheme, and non-monetary benefits as well as other short-term remuneration. During the accounting periodwhen staff provides services, the short-term remuneration actually occurred is recognized as liabilities andshall 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-retirementbenefits, etc. retirement benefit scheme represents the agreement reached by the Company and its employeesin respect of retirement benefits, or the rules or regulations established by the Company for providingretirement 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 notobliged to make further payment. Defined benefit plan refers to retirement benefit scheme other than definedcontribution plan.
The early retirement policy for staff and workers of the Company is the compensation for encouraging staffand workers to accept the reduction voluntarily. The employees make applications voluntarily, the twoparties sign the compensation agreement after approved by the Company and calculate the compensationamount according to the compensation standard passed by the staff representative conference, and theCompany confirms it as dismiss welfare and reckons it in current profits and losses. As the Companypromises to adjust the treatment for early retiring staff and workers with the increase of social basic cost ofliving allowances, the discount elements will not be considered for calculating the dismiss welfare.
25.Accrual liability
If the business in connection with such contingencies as a security involving a foreign party, commercialacceptance bill discount, pending litigation or arbitration, product quality assurance, etc. meets all of thefollowing conditions, the Company will confirm the aforesaid as liabilities: the obligation is an existingobligation of the Company; performance of the obligation is likely to cause economic benefits to flow out ofthe enterprise; the amount of the obligation is reliably measurable.
26. Principle of recognition of revenue and measurement method
The Company‘s sales revenue is mainly comprised of revenue from sale of goods, labor providing incomeand revenue from assignment of asset use rights.
The Company has fulfilled the performance obligations in the contract, that is, revenue is recognized whenthe customer obtains control of the relevant goods or services.
If the contract contains two or more performance obligations, the Company will allocate the transaction priceto each individual performance obligation according to the relative proportion of the stand-alone selling priceof the goods or services promised by each individual performance obligation on the date of the contract. The
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2020 to 31 December 2020(Unless otherwise specified. RMB for record in the statement)
revenue is measured according to the transaction price of each individual performance obligation.
The transaction price is the amount of consideration that the Company expects to be entitled to receive due tothe transfer of goods or services to customers, excluding payments on behalf of third parties. The transactionprice confirmed by the Company does not exceed the amount at which the cumulatively recognized revenuewill most likely not to undergo a significant switch back when the relevant uncertainty is eliminated. Themoney expected to be returned to the customer will be regarded as a return liability and not included in thetransaction price. If there is a significant financing component in the contract, the Company shall determinethe transaction price based on the amount payable on the assumption that the customer pays in cash whenobtaining the control of the goods or services. The difference between the transaction price and the contractconsideration shall be amortized by the effective interest method during the contract period. On the startingdate of the contract, if the Company expects that the interval between the customer's acquisition of control ofthe goods or services and the customer's payment of the price doesn‘t exceed one year, the significantfinancing components in the contract shall be ruled out.
When meeting one of the following conditions, the Company is to perform its performance obligationswithin a certain period of time, otherwise, it is to perform its performance obligations at a certain point intime:
1) The customer obtains and consumes the economic benefits brought by the Company's performance at thesame 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, andthe Company has the right to collect payment for the accumulated performance part of the contract during theentire contract period.For performance obligations performed within a certain period of time, the Company recognizes revenue inaccordance with the performance progress during that period and determine the progress of performance inaccordance with the output method. When the performance progress cannot be reasonably determined, if thecost incurred by the Company is expected to be compensated, the revenue shall be recognized according tothe 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 thepoint when the customer obtains control of the relevant goods or services. When judging whether a customerhas 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;
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2020 to 31 December 2020(Unless otherwise specified. RMB for record in the statement)
5) The customer has accepted the goods or services, etc.
The Company‘s right to receive consideration for goods or services that have been transferred to customersare presented as contractual assets, which are impaired on the basis of expected credit losses. The Company‘sunconditional right to receive consideration from customers is shown as a account receivable. The obligationto transfer goods or services to customers for which the Company has received consideration receivable fromthem is shown as a contractual liability.
27. Government subsidy
Government subsidy of the Company include project grants, financial subsidies and job stabilizationsubsidies.Of which, asset-related government subsidy are government subsidy acquired by the Company forthe acquisition or other formation of long-term assets; government subsidy related to revenue are governmentsubsidy other than those related to assets. If the government document does not clearly specify the subsidyobject, the Company will judge according to the above-mentioned distinguishing principle. If it is difficult todistinguish, 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 theyear that it can meet the relevant conditions stipulated by the financial support policy and is expected toreceive financial support funds, they are measured according to the amount receivable. If the governmentsubsidy is a non-monetary asset, it shall be measured at its fair value, when the fair value cannot be obtainedreliably, it shall be measured at its nominal amount (1 yuan).
Government subsidies related to assets are recognized as deferred income. Asset-related governmentsubsidies that are recognized as deferred income are included in the current profit and loss in installmentsaccording 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, theundistributed deferred income balance shall be transferred to the current profit and loss of asset disposal.
28. Deferred Income Tax Assets and Deferred Income Tax Liabilities
A deferred tax asset and deferred tax liability shall be determined by a difference (temporary difference)between the carrying amount of an asset or liability and its tax base. The deferred tax asset shall berecognized for the carry forward of unused deductible losses that it is probable that future taxable profits willbe available against which the deductible losses can be utilized. For temporary difference arising from initialrecognition of goodwill, no corresponding deferred income tax liabilities will be recognized. For temporarydifference arising from initial recognition of assets and liabilities occurred in the transaction related tonon-business combination which neither affect accounting profit nor taxable income (or deductible losses),
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2020 to 31 December 2020(Unless otherwise specified. RMB for record in the statement)
no corresponding deferred income tax assets and deferred income tax liabilities will be recognized. As of thebalance sheet date, deferred income tax assets and deferred income tax liabilities are measured at theeffective 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 islikely to be obtained to offset deductible temporary difference, deductible losses and tax credits.
29. Lease
The Company categorizes the lease into the financial leasing and the operating leasing.The financial leasing is the lease in which all risks and returns related to the ownership of assets aretransferred in substance. The Company as a lease holder, on the date of lease, the financial lease isrecognized as the fixed asset at lower cost of fair value of the rental asset and the NPV of minimum paymentof leasing. The minimum payment of leasing is recognized as long-term payable and the difference isaccounted into unrecognized financing expense.The operating lease is the lease apart from the financial leasing. The Company, as a lease holder, accountsthe rents into current period by straight line method during the term of the lease. The Company, as a leaser,accounts the rental income into current period by straight line method during the term of the lease.
30. Held-for-sale
(1)The Company classifies non-current assets or disposal groups that meet all of the following conditions asheld-for-sale: 1) according to the practice of selling this type of assets or disposal groups in a similartransaction, the non-current assets or disposal group can be sold immediately at its current condition; 2) Thesale is likely to occur, that is, the Company has made resolution on the selling plan and obtained definitepurchase commitment, the selling is estimated to be completed within one year. Those assets whose disposalis subject to approval from relevant authority or supervisory department under relevant requirements aresubject to that approval. Prior to the preliminary classification of non-current assets or disposal group as thecategory of held-for-sale, the Company measures the carrying value of the respective assets and liabilitieswithin the non-current assets or disposal group under relevant accounting standards. For non-current asset ordisposal group held for sale, for which it is found that the carrying value is higher than its fair value lessdisposal expense during the initial measurement or re-measurement on the balance sheet date, the carryingvalue shall be deducted to the net amount of fair value less disposal expense, and the reduced amount shall berecognized as impairment loss in profit or loss for the period, and provision of impairment of assets held forsale shall be provided for accordingly.
(2)The non-current assets or disposal group that the Company has acquired specially for resale are classifiedas held for sale on the acquisition date when they meet the condition that ―the selling is estimated to becompleted within one year‖ on the acquisition date, and are likely to satisfy other conditions of beingclassified as the type of held for sale in a short-term (usually being 3 months). Non-current assets or disposalgroup classified as held for sale are measured at the lower of their initial measurement amount and the net
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2020 to 31 December 2020(Unless otherwise specified. RMB for record in the statement)
amount after their fair value less the selling expenses based on the assumption that such non-current assets ordisposal group are not classified as held for sale at the time of initial measurement. Except for thenon-current assets or disposal group acquired in a business combination, the difference arising fromconsidering the net amount of such non-current assets or disposal group after their fair value less the sellingexpenses as the initial measurement amount is recorded in the current profit or loss.
(3)In case of loss of control over the subsidiaries due to the sales of investment in subsidiaries, no matterwhether the Company retains part of the equity investment after selling investment in subsidiaries, theinvestment in subsidiaries shall be classified as held for sale on an aggregate basis in the separate financialstatements of the parent company when the investment in subsidiaries proposed to be sold satisfies theconditions for being classified as held for sale; and all the assets and liabilities of the subsidiary shall beclassified as held for sale in the consolidated financial statements.
(4)If the net amount of fair value of non-current assets held for sale less sales expense on subsequent balancesheet date increases, the amount previously reduced for accounting shall be recovered and reverted from theimpairment loss recognized after the asset is classified under the category of held for sale, with the amountreverted recorded in profit or loss for the period. Impairment loss recognized before the asset is classifiedunder the category of held for sale shall not be reverted.
(5)For the amount of impairment loss on assets, the carrying value of disposal group‘s goodwill shall beoffset against first, and then offset against the book value of non-current assets according to the proportion ofbook value of non-current assets.If the net amount of fair value of the disposal group held for sale on the subsequent balance sheet date lesssales expenses increases, the amount reduced for accounting in previous periods shall be restored, and shallbe reverted in the impairment loss recognized in respect of the non-current assets which are applicable torelevant measurement provisions after classification into the category of held for sale, with the revertedamount charged in profit or loss for the current period. The written-off carrying value of goodwill andimpairment loss of non-current assets which is recognized prior to classification into the category of held forsale shall not be reverted.The subsequent reversed amount in respect of the impairment loss on assets recognized in the disposal groupheld for sale will increase the book value in proportion of the book value of each non-current asset (otherthan goodwill) in the disposal group.
(6) The non-current assets in the non-current assets or disposal group held for sale is not depreciated oramortized, and the debt interests and other fees in the disposal group held for sale continue to be recognized.
(7)If the non-current assets or disposal group are no longer classified as held for sale since they no longermeet the condition of being classified as held for sale or the non-current assets are removed from the disposalgroup held for sale, they will be measured at the lower of the following: 1) the amount after their book value
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2020 to 31 December 2020(Unless otherwise specified. RMB for record in the statement)
before they are classified as held for sale is adjusted based on the depreciation, amortization or impairmentthat should have been recognized given they are not classified as held for sale; 2) the recoverable amount.
(8) The unrecognized profits or loss will be recorded in the current profits or loss when derecognizing thenon-current assets or disposal group held for sale.
31. Discontinued operation
A discontinued operation is a separately identified component of the Group that either has been disposed ofor is classified as held for sale, and satisfies one of the following conditions: (1) represents a separate majorline of business or geographical area of operations; (2) is part of a single co-ordinate plan to dispose of aseparate major line of business or geographical area of operations; and (3) is a subsidiary acquiredexclusively with a view to resale.
32. Income tax accounting
The Company accounted the income tax in a method of debit in balance sheet. The income tax expensesinclude income tax in the current year and deferred income tax. The income tax associated with the eventsand transactions directly included in the owners‘ equity shall be included in the owners‘ equity; and thedeferred income tax derived from business combination shall be included in the carrying amount of goodwill,except for that above, the income tax expense shall be included in the profit or loss in the current period.The income tax expense in the current year refers to the tax payable, which is calculated according to the taxlaws on the events and transactions incurred in the current period. The deferred income tax refers to thedifference between the carrying amount and the deferred tax assets and deferred tax liabilities at CurrentYear-end recognized in the method of debit in the balance sheet.
33. Segment information
Business segment was the major reporting form of the Company, which divided into four parts:
air-conditioning, refrigerator & freezer & washing machine, small home appliance and others. The transferprice among the segments will recognize based on the market price, common costs will allocated by incomeproportion between segments except for the parts that without reasonable allocation.
34. Explanation on significant accounting estimation
The management of the Company needs to apply estimation and assumption when preparing financialstatement which will affect the application of accounting policy and amounts of assets, liabilities, income andexpense. The actual condition may differ from the estimation. Constant evaluation is conducted by themanagement 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
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2020 to 31 December 2020(Unless otherwise specified. RMB for record in the statement)
future periods.The following accounting estimation and key assumption may result in material adjustment to the book valueof 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 netrealizable value lower than the cost of inventories. The net realizable value of the inventory of goods that aredirectly used for sale, such as the goods in stock, the goods sent out, and the materials for sale, and thelow-consumption goods, shall be determined by the amount of the estimated selling price of the inventoryminus the estimated selling expenses and relevant taxes. The net realizable value of the material inventoryheld for production is determined by the amount of the estimated selling price of the finished productproduced minus the estimated cost to be incurred at the time of completion, the estimated selling expensesand 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 haveimpairment indication and long-term assets such as goodwill as at the balance sheet date. The recoverableamount of relevant assets and assets group shall be the present value of the projected future cash flow whichshall be calculated with accounting estimation.If the management amends the gross profit margin and discount rate adopted in calculation of future cashflow of assets and assets group and the amended gross profit margin is lower than the currently adopted oneor the amended discount rate is higher than the currently adopted one, the Company needs to increaseprovision 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 impairmentprovision 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 foreach future year. Realization of deferred income tax assets depends on whether a company is able to obtainsufficient taxable income in future. Change of future tax rate and switch back of temporary difference couldaffect the balance of income tax expense (gains) and deferred income tax. Change of the aforesaid estimationmay 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 valuerate of fixed assets and intangible assets. The projected usable life and residual value rate are determined bythe management based on the historical experiences of similar assets by reference to the estimation generallyused by the same industry with consideration on projected technical upgrade. If material change occurs toprevious estimation, the Company shall accordingly adjust the depreciation expenses and amortization
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2020 to 31 December 2020(Unless otherwise specified. RMB for record in the statement)
expenses for future period.
(5) Projected liabilities arising from product quality guarantee
The Company commits to repair the major spare parts of refrigerators sold through go-to-countrysidepromotion activity for free for ten years. As to the maintenance expenses that may be increased arising fromsuch commitment, the Company has provided projected liabilities.
Taking into account the various uncertainties during the ten years, the Company considers no discount factorof such projected liabilities. Instead, the Company reviews the parameters (probility, proportion, maintenanceexpense per single set) based on the actual occurrence of maintenance expenses as of each balance sheet date.If obvious change is found, the Company will adjust the projected liabilities according to the latestparameters so as to reflect the best estimation.
35. Other comprehensive income
Other comprehensive income represents various gains and losses not recognized in current gains and lossesaccording to other accounting rules.Other comprehensive income items shall be reported in the following two classes under other relevantaccounting rules:
(1) Other comprehensive income items that can not be reclassified into gains and losses in future accountingperiods, mainly including changes arising from re-measurement of net liabilities or net assets under definedbenefit plan and interest in investee‘s other comprehensive income which are measured under equity methodand 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 accountingperiods upon satisfaction of required conditions, mainly includes the share of other comprehensive incomethat is reclassified into profit and loss when the investee‘s subsequent accounting periods are accounted for inaccordance with the equity method and meet the specified conditions, the fair value changes occurred by thedebt investment that is measured at fair value and whose changes are included in other comprehensiveincome, the difference between the original book value included in other comprehensive income and the fairvalue when a financial asset measured at amortized cost is reclassified as a financial asset measured at fairvalue and its changes are included in other comprehensive income, the loss provisions for financial assetsmeasured at fair value and whose changes are included in other comprehensive income, the gains or lossesgenerated from cash flow hedging instruments are part of effective hedging, and the differences inconversion of foreign currency financial statements.
36. Change of significant accounting policies and accounting estimates
(1) Change of significant accounting policy
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2020 to 31 December 2020(Unless otherwise specified. RMB for record in the statement)
| Content and reasons | Approval procedure | Note |
| In 2017, the Ministry of Finance amended the Accounting Standards for Business Enterprises No.14- Revenue (Cai Kuai [2017] No.22), and the Company implemented the relevant accounting standards in preparing its financial statements for the year of 2020 and in accordance with the relevant convergence provisions. | Relevant change of the accounting policy has been deliberated and approved by the 41st session of 9th BOD |
Items and amounts of the statement items materially affected are as follows:
| Item affected | Consolidate statement | Parent company’s statement | ||||
| 2019-12-31 Before adjustment | Amount adjusted | 2020-1-1 After adjustment | 2019-12-31 Before adjustment | Amount adjusted | 2020-1-1 After adjustment | |
| Account received in advance | 425,149,194.97 | -425,149,194.97 | 147,365,864.56 | -147,365,864.56 | ||
| Contractual liability | 371,713,321.84 | 371,713,321.84 | 130,412,269.52 | 130,412,269.52 | ||
| Other current liability | 53,435,873.13 | 53,435,873.13 | 16,953,595.04 | 16,953,595.04 | ||
(2) Change of significant accounting estimates: N/A
(3) Implementation of the new revenue standard fro 2020 (for the first time) adjusts the information on therelevant items in the financial statements at the beginning of the year of implementationNotes to the adjustment of consolidation and parent company‘s balance sheet: in accordance with the newrevenue standards exercise on 1 Jan. 2020, reclassification of the portion of an enterprise‘s obligation totransfer goods to a customer for consideration received or receivable from the customer to a contractualliability, at the same time, the pending sales tax, corresponding to the contract liabilities, is also included initems of other current liability. Found more in 36 (1) for specific adjustments.
(4) There are no retrospective adjustments to prior period data for the implementation of the new revenuestandard from 2020 (for the first time)V. Taxation
1. Major taxes and tax rates
| Tax (expenses) | Tax (expenses) base | Tax (expenses) rate |
| VAT | Income from sales of goods and from processing | 13%, 9%, 6%, 5%, 3% |
| Urban maintenance and construction tax | Turnover tax | 5% or 7% |
| Education surcharge | Turnover tax | 3% |
| Local education | Turnover tax | 2% |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020(Unless otherwise specified. RMB for record in the statement)
| Tax (expenses) | Tax (expenses) base | Tax (expenses) rate |
| surcharge | ||
| Corporate income tax | Taxable income | 15%, 20%, 25%, 30%, 33% |
| House Property Tax | Original Book value of house property×(1-30%)or annual rent income | 1.2% or 12% |
| Land use tax | Actual land area used | 1 Yuan/M2 to 15 Yuan /M2 |
Description of taxpayers with different corporate income tax rates:
| Name | Income tax rate |
| Changhong Meiling Co., Ltd. | 15% |
| Zhongke Meiling Cryogenic Technology Co., Ltd. | 15% |
| Zhongshan Changhong Electric Co., Ltd. | 15% |
| Sichuan Hongmei Intelligent Technology Co., Ltd. | 15% |
| Mianyang Meiling Refrigeration Co., Ltd. | 15% |
| Changhong Meiling Ridian Technology Co., Ltd. | 15% |
| Ground Energy Heat Pump Tech. (Zhongshan) Co., Ltd. | 15% |
| Hefei Meiling Nonferrous Metal Products Co., Ltd. | 15% |
| Jiangxi Meiling Electric Co., Ltd. | 15% |
| Sichuan Changhong Air Conditioning Co., Ltd. | 15% |
| Anhui Tuoxing Technology Co., Ltd. | 20% |
| Guangzhou Changhong Trading Co., Ltd. | 20% |
| CH-Meiling International (Philippines) Inc. | 30% |
| Changhong Ruba Trading Company (Private) Limited | 33% |
2. Preferential tax
(1) On August 17, 2020, the company obtained the high-tech enterprise certificate numberedGR202034000222 approved by the Anhui Provincial Department of Science and Technology, AnhuiProvincial Department of Finance, and Anhui Provincial Taxation Bureau of the State Administration ofTaxation, and enjoys 15% rate for the income tax for State Hi-Tech Enterprise for three years term.
(2) On August 17, 2020, the subsidiary Zhongke Meiling Cryogenic Technology Co., Ltd. obtained thehigh-tech enterprise certificate numbered GR202034000072 approved by the Anhui Provincial Departmentof Science and Technology, Anhui Provincial Department of Finance, and Anhui Provincial Taxation Bureauof the State Administration of Taxation, and enjoys 15% rate for the income tax for State Hi-Tech Enterprise
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2020 to 31 December 2020(Unless otherwise specified. RMB for record in the statement)
for three years term.
(3) On December 9, 2020, the subsidiary Zhongshan Changhong Electric Co., Ltd., was included in the―Notice on Publicizing the List of the Second Batch of High-tech Enterprises to be Recognized inGuangdong Province in 2020'' published by the Office of the National High-tech Enterprise CertificationManagement Leading Group, and continues to enjoy 15% rate for the income tax for State Hi-TechEnterprise for three years term.
(3) The subsidiary Sichuan Hongmei Intelligent Technology Co., Ltd. has passed the qualification ofhigh-tech enterprise certification on 9 December 2020, and enjoys 15% rate for the income tax for StateHi-Tech Enterprise for three years term.
(4) Subsidiary Mianyang Meiling Refrigeration Co., Ltd. pass the review of Reply [Chuan JX Industrial H(2014) No.408] from Sichuan Commission of Information on 9 May 2014, and the enterprise belongs to theencourage industry listed in Directories of Industrial Structure Adjustment (2011) Revised (State LawReform Committee No. 21 Order); which enjoys the preferential tax policy of income tax for the westerndevelopment enterprise. And file in tax bureau with 15% rate for enterprise income tax since 2014 with sevenyears term.
(5) The subsidiary Guangdong Changhong Meiling Ridian Technology Co., Ltd. has passed the qualificationof high-tech enterprise certification on 2 December 2019, and enjoys 15% rate for the income tax for StateHi-Tech Enterprise for three years term.
(6) The subsidiary Hongyuan Ground Energy Heat Pump Tech. (Zhongshan) Co., Ltd. has passed thequalification of high-tech enterprise certification on 2 December 2019, and enjoys 15% rate for the incometax for State Hi-Tech Enterprise for three years term.
(7) The subsidiary Hefei Meiling Nonferrous Metal Products Co., Ltd. has passed the qualification ofhigh-tech enterprise certification on 26 October 2018, and enjoys 15% rate for the income tax for StateHi-Tech Enterprise for three years term.
(8) The subsidiary Jiangxi Meiling Electric Appliance Co., Ltd. has passed the qualification of high-techenterprise certification on 16 September 2019, and enjoys 15% rate for the income tax for State Hi-TechEnterprise for three years term.
(9) The subsidiary Sichuan Changhong Air-conditioner Co., Ltd., belongs to the encouraged industry in theIndustrial Structure Adjustment Guidance Catalog and enjoys the preferential taxation policy of corporateincome tax for the Western Development, and the corporate income tax is levied at a reduced tax rate of 15%,valid until December 31, 2030.
(10) The subsidiary Anhui Tuoxing Technology Co., Ltd. is in compliance with the relevant standards for
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
small and medium-sized enterprises with meager profits in the Notice on the Implementation of InclusiveTax Relief Policies for Small and Micro Enterprises (Caishui [2019] No. 13) of the Ministry of Finance andthe State Administration of Taxation, and temporarily implements below policies: the part of annual taxableincome that does not exceed one million yuan is included in taxable income by 25% after a reduction, andcorporate income tax is paid at a tax rate of 20%; while the part of annual taxable income exceeds onemillion yuan but not exceeding three million yuan is included in taxable income by 50% after a reduction,and corporate income tax is paid at a tax rate of 20%, which is valid until December 31, 2021.VI. Notes to the major items in the consolidated financial statements
With respect to the financial statements figures disclosed below, unless otherwise specified, ―year-beginning‖refers to Jan. 1, 2020; ―year-end‖ refers to Dec. 31, 2020; ―Current Year‖ refers to Jan. 1 to Dec. 31, 2020;―the last year‖ refers to Jan. 1 to Dec. 31, 2019; the currency is RMB.
1. Monetary fund
| Item | Balance at year-end | Balance at year-begin |
| Cash | 35,088.07 | 44,818.07 |
| Bank deposit | 6,100,644,898.32 | 4,771,094,609.77 |
| Other Monetary fund | 484,232,497.85 | 728,461,602.80 |
| Interest receivable on deposit | 9,874,305.74 | |
| Total | 6,594,786,789.98 | 5,499,601,030.64 |
| Including: total amount deposited in overseas | 11,293,949.64 | 25,326,137.49 |
Other monetary fund:
| Item | Amount at year-end |
| Cash deposit | 444,087,381.64 |
| B share repurchase | 33,993,171.95 |
| Account of foreign currency for verification | 5,145,493.12 |
| Co-managed account funds | 503,170.44 |
| Taobao account | 486,333.43 |
| Union Pay online | 16,947.27 |
| Total | 484,232,497.85 |
Cash deposit which serves as non cash and cash equivalents refers to the banking acceptance draft depositwith a term of over three months, amounting to 107,629,498.70 yuan, the amount restricted for used inmanaged account was 503,170.44 yuan, bank deposits of 51,100,000.00 yuan frozen due to litigation, ChinaUnion Pay, Taobao account and Ten Pay are all third party payment platforms for the deposit of 150,000.00yuan and interest receivable from deposits of 9,874,305.74 yuan, the remaining Monetary funds are treated ascash and cash equivalents.
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2020 to 31 December 2020(Unless otherwise specified. RMB for record in the statement)
Pars of the goods payment denominated in foreign currency should be transferred to reviewing accountswhich may not be used temporarily. Upon approval of such review, those payments may be transferred togeneral accounts. Due to the relatively short time for reviewing foreign exchange, balance of the reviewingaccounts is not limited on utilization.
2. Tradable financial assets
| Item | Balance at year-end | Balance at year-begin |
| Financial assets measured at fair value and whose changes are included in current gains/losses | 47,242,339.07 | 7,730,268.92 |
| Including: Derivative financial assets | 47,242,339.07 | 7,730,268.92 |
Tradable financial assets refers to the RMB forward exchange fund in Current Year
3. Note receivable
(1) Category of note receivable
| Item | Balance at year-end | Balance at year-begin |
| Bank acceptance | 13,023,329.01 | 1,676,718,999.50 |
| Trade acceptance | 335,880,000.00 | 190,350,000.00 |
| Total | 348,903,329.01 | 1,867,068,999.50 |
| Less: bad debt provision | 8,481,942.30 | 1,903,500.00 |
| Book value | 340,421,386.71 | 1,865,165,499.50 |
(2) Notes endorsement or discount and undue on balance sheet date
| Item | Amount derecognition at year-end | Amount without derecognition at year-end |
| Bank acceptance | ||
| Trade acceptance | 478,592,805.79 | 257,880,000.00 |
| Total | 478,592,805.79 | 257,880,000.00 |
(3) Notes transfer to account receivable due for failure implementation by drawer at year-end
(4) By accrual of bad debt provision
| Category | Amount at year-end | ||||
| Book balance | Bad debt provision | Book value | |||
| Amount | Ratio | Amount | Ratio | ||
| With bad debt provision accrual on single item | 13,023,329.01 | 3.73% | 300,000.00 | 2.30% | 12,723,329.01 |
| Including: bank acceptance | 13,023,329.01 | 3.73% | 300,000.00 | 2.30% | 12,723,329.01 |
| With bad debt provision accrual on portfolio | 335,880,000.00 | 96.27% | 8,181,942.30 | 2.44% | 327,698,057.70 |
| Including: trade acceptance | 335,880,000.00 | 96.27% | 8,181,942.30 | 2.44% | 327,698,057.70 |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2020 to 31 December 2020(Unless otherwise specified. RMB for record in the statement)
| Category | Amount at year-end | ||||
| Book balance | Bad debt provision | Book value | |||
| Amount | Ratio | Amount | Ratio | ||
| Total | 348,903,329.01 | 100.00% | 8,481,942.30 | 2.43% | 340,421,386.71 |
(Continued)
| Category | Amount at year-begin | ||||
| Book balance | Bad debt provision | Book value | |||
| Amount | Ratio | Amount | Ratio | ||
| With bad debt provision accrual on single item | 1,676,718,999.50 | 89.80% | 1,676,718,999.50 | ||
| Including: bank acceptance | 1,676,718,999.50 | 89.80% | 1,676,718,999.50 | ||
| With bad debt provision accrual on portfolio | 190,350,000.00 | 10.20% | 1,903,500.00 | 1.00% | 188,446,500.00 |
| Including: trade acceptance | 190,350,000.00 | 10.20% | 1,903,500.00 | 1.00% | 188,446,500.00 |
| Total | 1,867,068,999.50 | 100.00% | 1,903,500.00 | 0.10% | 1,865,165,499.50 |
1) Note receivable withdrawal bad debt provision on single item
| Name | Balance at year-end | |||
| Book balance | Bad debt provision | Provision ratio (%) | Provision reason | |
| Bank acceptance | 12,723,329.01 | Minimal risk, holding maturity acceptance | ||
| Bank acceptance | 300,000.00 | 300,000.00 | 100.00% | The bill has been collected by the bank |
| Total | 13,023,329.01 | 300,000.00 | — | — |
2) Note receivable withdrawal bad debt provision by combination
| Account age | Balance at year-end | ||
| Note receivable | Bad debt provision | Provision ratio | |
| Within 3 months (3 months included) | 282,289,530.00 | 2,822,895.30 | 1.00% |
| More than 3 months and less than 6 months (6 months included) | 53,590,470.00 | 5,359,047.00 | 10.00% |
| Total | 335,880,000.00 | 8,181,942.30 | |
(5) Bad debt provision of note receivable that has been accrued, withdrawn, and reversed this yearThis year, note receivable with bad debt provision accrual amount as RMB 6,578,442.30. No notereceivable that has been written off in previous years has been recovered this year.
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2020 to 31 December 2020(Unless otherwise specified. RMB for record in the statement)
(6) No note receivable actually written off in this year.
4. Account receivable
(1) Category of account receivable by bad debt accrual
| Category | Amount at year-end | ||||
| Book balance | Bad debt provision | Book value | |||
| Amount | Ratio | Amount | Ratio | ||
| Account receivable that withdrawal bad debt provision by single item | 523,379,846.95 | 43.52% | 25,905,935.37 | 4.95% | 497,473,911.58 |
| Including: current payment with related party | 397,745,724.79 | 33.07% | 3,943,524.26 | 0.99% | 393,802,200.53 |
| Account receivable with letter of credit | 72,037,362.43 | 5.99% | 72,037,362.43 | ||
| Account receivable with single minor amount but withdrawal single item bad debt provision | 53,596,759.73 | 4.46% | 21,962,411.11 | 40.98% | 31,634,348.62 |
| Account receivable withdrawal bad debt provision by portfolio | 679,107,003.09 | 56.48% | 46,305,134.01 | 6.82% | 632,801,869.08 |
| Including: account receivable of engineering customers | 173,638,731.59 | 14.44% | 13,008,672.00 | 7.49% | 160,630,059.59 |
| Receivables other than engineering customers | 505,468,271.50 | 42.04% | 33,296,462.01 | 6.59% | 472,171,809.49 |
| Total | 1,202,486,850.04 | 100.00% | 72,211,069.38 | 6.01% | 1,130,275,780.66 |
(Continued)
| Category | Amount at year-begin | ||||
| Book balance | Bad debt provision | Book value | |||
| Amount | Ratio | Amount | Ratio | ||
| Account receivable that withdrawal bad debt provision by single item | 746,199,837.64 | 51.49% | 26,519,983.66 | 3.55% | 719,679,853.98 |
| Including: current payment with related party | 614,612,878.93 | 42.41% | 614,612,878.93 | ||
| Account receivable with letter of credit | 52,306,821.66 | 3.61% | 52,306,821.66 | ||
| Account receivable with single minor amount but withdrawal single item bad debt provision | 79,280,137.05 | 5.47% | 26,519,983.66 | 33.45% | 52,760,153.39 |
| Account receivable withdrawal bad debt provision by portfolio | 703,054,274.21 | 48.51% | 34,772,146.53 | 4.95% | 668,282,127.68 |
| Including: account receivable of engineering customers | 141,637,042.88 | 9.77% | 3,940,749.05 | 2.78% | 137,696,293.83 |
| Receivables other than engineering customers | 561,417,231.33 | 38.74% | 30,831,397.48 | 5.49% | 530,585,833.85 |
| Total | 1,449,254,111.85 | 100.00% | 61,292,130.19 | 4.23% | 1,387,961,981.66 |
1) Account receivable that withdrawal bad debt provision by single item
Account receivable with single minor amount but withdrawal bad debt provision singly, refers to the minorsingle receivables, and withdrawal bad debt provision by combination shows no risk characteristic of the
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2020 to 31 December 2020(Unless otherwise specified. RMB for record in the statement)
receivables, 76 clients involved.
2) Account receivable withdrawal bad debt provision by portfolio
A. Account receivable of engineering customers
| Account age | Balance at year-end | ||
| Book balance | Bad debt provision | Provision ratio (%) | |
| Within 3 months (3 months included) | 67,204,732.79 | 0.00% | |
| More than 3 months and less than 6 months (6 months included) | 7,907,641.48 | 0.00% | |
| Over 6 months and within one year (One year included) | 45,690,126.79 | 0.00% | |
| Over one year - within 2 years (2 years included) | 44,698,144.23 | 8,939,628.85 | 20.00% |
| Over 2 years - within 3 years (3 years included) | 8,138,086.30 | 4,069,043.15 | 50.00% |
| Over 3 years | |||
| Total | 173,638,731.59 | 13,008,672.00 | — |
B. Receivables other than engineering customers
| Account age | Balance at year-end | ||
| Book balance | Bad debt provision | Provision ratio (%) | |
| Within 3 months (3 months included) | 412,523,951.50 | 4,125,239.52 | 1.00% |
| More than 3 months and less than 6 months (6 months included) | 39,054,407.32 | 3,905,440.73 | 10.00% |
| Over 6 months and within one year (One year included) | 20,517,859.18 | 4,103,571.84 | 20.00% |
| Over one year - within 2 years (2 years included) | 19,648,475.02 | 9,824,237.51 | 50.00% |
| Over 2 years - within 3 years (3 years included) | 11,928,030.36 | 9,542,424.29 | 80.00% |
| Over 3 years | 1,795,548.12 | 1,795,548.12 | 100.00% |
| Total | 505,468,271.50 | 33,296,462.01 | |
(2) By account age
| Account age | Balance at year-end |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2020 to 31 December 2020(Unless otherwise specified. RMB for record in the statement)
| Account age | Balance at year-end |
| Within 3 months (3 months included) | 827,575,650.32 |
| More than 3 months and less than 6 months (6 months included) | 114,077,060.79 |
| Over 6 months and within one year (One year included) | 81,325,161.45 |
| Over one year - within 2 years (2 years included) | 134,016,062.26 |
| Over 2 years - within 3 years (3 years included) | 32,482,491.24 |
| Over 3 years | 13,010,423.98 |
| Total | 1,202,486,850.04 |
(3) Bad debt provision of accounts receivable this year
| Category | Balance at year-begin | Changes this year | Balance at year-end | |||
| Accrual | Withdrawal or reversal | Resale or write-off | Other decreases | |||
| Bad debt provision | 61,292,130.19 | 19,547,917.73 | 5,039,635.85 | 1,780,105.94 | 1,809,236.75 | 72,211,069.38 |
| Total | 61,292,130.19 | 19,547,917.73 | 5,039,635.85 | 1,780,105.94 | 1,809,236.75 | 72,211,069.38 |
(4) Account receivable actually written-off in Current Year
| Item | Written-off amount |
| Account receivable written-off | 1,780,105.94 |
(5) Top five receivables collected by arrears party amounting to 417,337,499.72 yuan in total, accounted for
34.71% of the receivables of Current Year-end, the bad debt provision accrual correspondingly amounting to4,735,034.49 yuan at year-end balance.
(6) No account receivable terminated recognization due to the transfer of financial assets
(7) No assets and liability transfer Account receivable and continues to involve at year-end.
5. Receivables financing
| Item | Balance at year-end | Balance at year-begin |
| Bank acceptance | 1,632,388,702.83 | |
| Total | 1,632,388,702.83 |
(1) Notes receivable already pledged that presented in receivables financing at the end of the year:
| Item | Amount pledged at year-end |
| Bank acceptance | 548,295,149.14 |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2020 to 31 December 2020(Unless otherwise specified. RMB for record in the statement)
Note: with purpose of improving the note utilization, the Company draw up bank acceptance by pledge partsof the outstanding notes receivable to the bank. For details of the pledge of bills receivable, see Note VI. 57.Assets with restricted ownership or use rights.
(2) Notes endorsement or discount and undue on balance sheet date listed in receivables financing at the endof the year
| Item | Amount derecognition at year-end | Amount without derecognition at year-end |
| Bank acceptance | 957,534,680.60 | |
| Trade acceptance | ||
| Total | 957,534,680.60 |
6. Accounts paid in advance
(1) Age of account paid in advance
| Item | Balance at year-end | Balance at year-begin | ||
| Amount | Ratio （%） | Amount | Ratio （%） | |
| Within one year | 29,423,135.91 | 97.73% | 23,665,135.72 | 93.65% |
| 1-2 years | 393,517.42 | 1.31% | 945,375.38 | 3.74% |
| 2-3 years | 25,000.00 | 0.08% | 331,164.45 | 1.31% |
| Over 3 years | 263,720.07 | 0.88% | 328,730.82 | 1.30% |
| Total | 30,105,373.40 | 100.00% | 25,270,406.37 | 100.00% |
(2) Top 5 of account paid in advance in balance at year-end amounting to 15,807,170.94 yuan, accounted for
52.51% of the account.
7. Other account receivable
| Item | Balance at year-end | Balance at year-begin |
| Interest receivable | 9,510,208.63 | |
| Dividend receivable | 661,434.48 | |
| Other account receivable | 145,705,978.26 | 87,070,251.69 |
| Total | 145,705,978.26 | 97,241,894.80 |
7.1 Interest receivable
(1) Category of interest receivable
| Item | Balance at year-end | Balance at year-begin |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2020 to 31 December 2020(Unless otherwise specified. RMB for record in the statement)
| Item | Balance at year-end | Balance at year-begin |
| Interest receivable from time deposit | 9,510,208.63 | |
| Total | 9,510,208.63 |
(2) Major overdue interest: nil
7.2 Dividend receivable
(1) Category of dividend receivable
| Item | Balance at year-end | Balance at year-begin |
| Huishang Bank Co., Ltd. | 661,434.48 |
(2) Major dividends receivable with account age over 1 year: Nil
7.3 Other account receivable
(1) Category of other account receivable
| Nature | Book balance at year-end | Book balance at year-begin |
| Export rebate | 32,281,664.19 | 21,650,454.61 |
| Cash deposit | 77,754,290.83 | 49,470,316.18 |
| Loans of employee‘s pretty cash | 14,876,565.98 | 16,863,753.28 |
| Related party not in consolidation statement | 3,241,296.82 | 1,163,963.53 |
| Advance money temporary | 65,938.41 | 332,896.32 |
| Other | 18,375,974.37 | 2,645,856.29 |
| Total | 146,595,730.60 | 92,127,240.21 |
(2) Other account receivable bad debt reserves
| Bad debt provision | First stage | Second stage | Third stage | Total |
| Expected credit loss in next 12 months | Expected credit loss for the whole duration (no credit impairment) | Expected credit loss for the whole duration (credit impairment has occurred) | ||
| Balance as at 1 Jan. 2020 | 5,004,988.52 | 52,000.00 | 5,056,988.52 | |
| Book balance of other account receivable in Current Year as at 1 Jan. 2020 | — | — | — | — |
| --Transfer to the second stage | ||||
| -- Transfer to the third stage | ||||
| -- Reversal to the second stage |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2020 to 31 December 2020(Unless otherwise specified. RMB for record in the statement)
| Bad debt provision | First stage | Second stage | Third stage | Total |
| Expected credit loss in next 12 months | Expected credit loss for the whole duration (no credit impairment) | Expected credit loss for the whole duration (credit impairment has occurred) | ||
| -- Reversal to the first stage | ||||
| Provision in Current Year | -4,056,236.18 | 50,000.00 | -4,006,236.18 | |
| Reversal in Current Year | 22,000.00 | 22,000.00 | ||
| Conversion in Current Year | ||||
| Write off in Current Year | 109,000.00 | 30,000.00 | 139,000.00 | |
| Other change | ||||
| Balance as at 31 Dec. 2020 | 839,752.34 | 50,000.00 | 889,752.34 |
The write-off this year was due to the cancellation of the subsidiary Changmei Technology Co., Ltd. andthe employee reserve funds receivable are written off.
(3) By account age
| Account age | Balance at year-end |
| Within 3 months (3 months included) | 91,920,859.60 |
| More than 3 months and less than 6 months (6 months included) | 22,540,450.31 |
| Over 6 months and within one year (One year included) | 19,585,237.13 |
| Over one year - within 2 years (2 years included) | 5,705,751.39 |
| Over 2 years - within 3 years (3 years included) | 2,756,045.96 |
| Over 3 years | 4,087,386.21 |
| Total | 146,595,730.60 |
(4) Top 5 other receivables collected by arrears party at balance of year-end:
| Name | Nature | Balance at year-end | Account age | Proportion in total other receivables at year-end | Balance at year-end of bad debt provision |
| SAT of Hefei Economic & Technological Development Zone | Tax rebate | 32,281,664.19 | Within 3 months | 22.02% | |
| Development & Reform Bureau of Qingyuan District, | Cash deposit | 16,400,000.00 | Within 3 months | 11.19% |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2020 to 31 December 2020(Unless otherwise specified. RMB for record in the statement)
| Name | Nature | Balance at year-end | Account age | Proportion in total other receivables at year-end | Balance at year-end of bad debt provision |
| Baoding City | |||||
| Office of the lading group for construction of new socialist countryside in Shunyi District | Cash deposit | 8,780,849.40 | Within 3 months | 5.99% | |
| Housing and Urban-Rural Development Bureau in Anguo City | Cash deposit | 3,319,800.00 | Within 3 months | 2.26% | |
| Bureau of agriculture and rural affairs in Wuji County | Cash deposit | 2,986,740.00 | Within 3 months | 2.04% | |
| Total | — | 63,769,053.59 | — | 43.50% |
(5) No other account receivable involved government subsidies at year-end.
(6) No other receivables terminated recognization due to the transfer of financial assets at year-end.
(7) No assets and liability transfer other receivables and continues to involve at year-end.
8. Inventories
(1) Classification of inventories
| Item | Amount at year-end | ||
| Book balance | Inventory price decline provision/contract performance cost impairment provision | Book value | |
| Raw materials | 153,887,580.62 | 9,729,874.26 | 144,157,706.36 |
| Stock commodities | 1,227,162,291.35 | 73,930,262.61 | 1,153,232,028.74 |
| Low value consumable articles | 5,946,757.68 | 916,206.67 | 5,030,551.01 |
| Goods in transit | 245,061,800.18 | 9,702,391.49 | 235,359,408.69 |
| Goods-in-process | 8,737,073.41 | 8,737,073.41 | |
| Contract performance cost | 119,758,145.49 | 97,462.80 | 119,660,682.69 |
| Deferred expense for mould | 49,177,500.53 | 49,177,500.53 | |
| Total | 1,809,731,149.26 | 94,376,197.83 | 1,715,354,951.43 |
(Continued)
| Item | Amount at year-begin | ||
| Book balance | Inventory price decline provision/contract performance cost impairment provision | Book value | |
| Raw materials | 151,663,007.21 | 8,222,896.79 | 143,440,110.42 |
| Stock commodities | 1,067,657,584.34 | 85,915,212.96 | 981,742,371.38 |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
| Item | Amount at year-begin | ||
| Book balance | Inventory price decline provision/contract performance cost impairment provision | Book value | |
| Low value consumable articles | 7,450,761.70 | 114,037.76 | 7,336,723.94 |
| Goods in transit | 215,898,485.10 | 4,872,592.90 | 211,025,892.20 |
| Goods-in-process | 10,181,803.47 | 10,181,803.47 | |
| Contract performance cost | 70,738,030.16 | 70,738,030.16 | |
| Deferred expense for mould | 36,445,257.49 | 36,445,257.49 | |
| Total | 1,560,034,929.47 | 99,124,740.41 | 1,460,910,189.06 |
(2) Provision for inventory depreciation and contract performance cost impairment provision
| Item | Amount at year-begin | Increase this year | Decrease this year | Amount at year-end | ||
| Accrual | Other | Reversal or reselling | Other | |||
| Raw materials | 8,222,896.79 | 7,960,477.24 | 6,453,499.77 | 9,729,874.26 | ||
| Stock commodities | 85,915,212.96 | 36,058,098.21 | 48,043,048.56 | 73,930,262.61 | ||
| Goods in transit | 4,872,592.90 | 11,167,555.08 | 6,337,756.49 | 9,702,391.49 | ||
| Low value consumable articles | 114,037.76 | 868,562.49 | 66,393.58 | 916,206.67 | ||
| Contract performance cost | 97,462.80 | 97,462.80 | ||||
| Total | 99,124,740.41 | 56,152,155.82 | 60,900,698.40 | 94,376,197.83 | ||
(3) Accrual for inventory falling price reserves
| Item | Specific basis for determining of net realizable value | Reasons for the reversal or reselling in Current Year |
| Raw materials | Cost is higher than net realizable value (The processed products are decline) | For production |
| Stock commodities | Cost is higher than net realizable value (The market price at period-end fell) | For sale |
| Goods in transit | Cost is higher than net realizable value (The market price at period-end fell) | For sale |
| Low value consumable articles | Cost is higher than net realizable value | Already used |
| Contract performance cost | Engineering construction Cost is higher than net realizable value (The processed products are decline) | Already used |
9. Other current assets
| Item | Balance at year-end | Balance at year-begin |
| Value-added tax to be deducted | 181,882,278.05 | 43,809,823.14 |
| Advance payment of income tax | 9,506,261.78 | 18,010,305.85 |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
| Item | Balance at year-end | Balance at year-begin |
| Pakistan local sales tax | 2,453,792.84 | 1,337,337.27 |
| Contract acquisition cost | 4,511,132.31 | |
| Other unamortized expenses | 446,565.70 | |
| Total | 198,353,464.98 | 63,604,031.96 |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020(Unless otherwise specified. RMB for record in the statement)
10. Long-term equity investment
| Invested enterprise | Balance at year-begin | Changes in Current Year | Balance at year-end | Balance at year-end of impairment | |||||||
| Additional investment | Disinvestment | Investment profit and loss confirmed by equity method | Other comprehensive income adjustment | Other changes of equity | Declaration of cash dividends or profits | Provision for impairment | Other | ||||
| Associated companies | |||||||||||
| 1.Hefei Xingmei Assets Management Co., Ltd. | 8,554,613.73 | -1,728,338.74 | 6,826,274.99 | ||||||||
| 2.Sichuan Zhiyijia Network Technology Co., Ltd. note 1 | 45,607,507.85 | 205,619.66 | 6,649,787.97 | 39,163,339.54 | |||||||
| 3.Hongyuan Ground Energy Heat Tech. Co., Ltd. note 2 | 23,374,940.65 | -1,271,831.08 | 22,103,109.57 | ||||||||
| 4.Sichuan Tianyou Guigu Technology Co., Ltd. note 3 | 2,802,223.55 | 47,867.96 | 2,850,091.51 | ||||||||
| 5.Chengdu Guigu Environmental Tech. Co., Ltd. note 4 | 8,217,225.92 | -2,177,219.15 | 6,040,006.77 | ||||||||
| 6.ChanghongRuba ElectricCompany(Private)Ltd. note 5 | -194,554.26 | 194,554.26 | |||||||||
| 7.Hefei Meiling Solar Energy Technology Co., Ltd. note 6 | 1,617,928.00 | 1,617,928.00 | |||||||||
| Total | 88,556,511.70 | -3,500,527.61 | 194,554.26 | 8,267,715.97 | 76,982,822.38 | ||||||
Note 1: on 16 December 2014, the Company executed a joint venture agreement with its controlling shareholder Sichuan Changhong Electric Co., LTD, targeting to jointly establish SichuanZhiyijia Network Technology Co., Ltd. On 5 January 2015, Sichuan Zhiyijia Network Technology Co., Ltd was officially incorporated with registered capital of 50 million yuan, among which,the Company made contribution of 15 million yuan with shareholding proportion of 30% and Sichuan Changhong Electric Co., LTD made contribution of 35 million yuan with shareholdingproportion 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
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2020 to 31 December 2020(Unless otherwise specified. RMB for record in the statement)
Zhiyijia with shareholding ratio up to 50%.Note 2: subsidiary Sichuan Changhong Air Conditioner Co., Ltd (―Changhong Air Conditioner‖) and Hengyouyuan Technology Development Group Co., Ltd. (―Hengyouyuan‖) cooperated toestablish Hongyuan Ground Energy Heat Technology Co., Ltd. on 28 October 2015. The registered capital of the company is 50 million yuan, among which, Changhong Air Conditionercontributed 24.5 million yuan, accounting for 49% of the registered capital, and Hengyouyuan contributed 25.5 million yuan, accounting for 51% of the registered capital.Note 3: Sichuan Tianyou Guigu Technology Co., Ltd. was incorporated on 31 March 2015 with registered capital of 100 million yuan. Our subsidiary Changhong Air Conditioner made capitalcontribution 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 theregistered capital. Mianyang Investment Holding (Group) Co., Ltd made capital contribution of 5 million yuan, accounting for 5% of the registered capital. Shanghai Zhongcheng XindayaFinancial 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 of10 million yuan, accounting for 10% of the registered capital. Chengdu Dongyu Shangmao Co., Ltd made capital contribution of 15 million yuan, accounting for 15% of the registered capital. In2016, shareholders meeting of Sichuan Tianyou Guigu Technology Co., Ltd. agreed to reduce the 50 million Yuan capital, the shareholders are reducing the capital by ratio of share-holding.After capital reduction, subsidiary Changhong Air conditioner contributed 12.5 million Yuan, representing 25% of the registered capital.Note 4: Chengdu Guigu Environmental Tech. Co., Ltd. was incorporated on 22 May 2013 with registered capital of 40 million yuan. Our subsidiary Changhong Air Conditioner made capitalcontribution 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. MianyangInvestment 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 capitalNote 5: Zhongshan Changhong, a subsidiary of the Company, entered into a supplemental joint venture agreement with RUBA Comprehensive Trading Company in 2017, pursuant to which,
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
both parties agreed to increase capital contribution of US$ 1,130,191.00, among which, Zhongshan Changhong subscribed to contribute US$ 452,076.00 (equivalent to 3,001,649.02 yuan on theactual contribution date) according to the original shareholding proportion of 40% and RUBA Comprehensive Trading Company subscribed to contribute US$ 678,115.00 according to theoriginal shareholding proportion of 60%.Note 6: Hefei Meiling Solar Energy Technology Co., Ltd. was incorporated on April 18, 2002, with a registered capital of RMB 10 million. Subsidiary Hefei Meiling Group Holdings Limitedinvested RMB 3.1114 million, accounting for 31.114% of the registered capital; Hefei Huayi Investment Co., Ltd. invested RMB 4.972 million, accounting for 49.72% of the registered capital;Hefei Xingtai Asset Management Co., Ltd. invested RMB 1.9166 million, accounting for 19.166% of the registered capital.
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020(Unless otherwise specified. RMB for record in the statement)
11. Other non-current financial assets
| Item | Balance at year-end | Balance at year-begin |
| Sichuan Changhong Group Finance Co., Ltd. | 500,000,000.00 | |
| Huishang Bank Co., Ltd. | 5,000,000.00 | 5,000,000.00 |
| Hongyun Fund | 43,148,931.34 | 40,000,000.00 |
| Total | 548,148,931.34 | 45,000,000.00 |
12. Investment real estate
(1) Investment real estate measured at costs
| Item | House and buildings | Land use right | Total |
| I. Original book value | |||
| 1.Balance at year-begin | 107,085,322.69 | 3,411,848.00 | 110,497,170.69 |
| 2.Increase this year | |||
| 3.Decrease this year | 47,572,819.40 | 3,411,848.00 | 50,984,667.40 |
| (1) Converted to self-use assets | 47,572,819.40 | 3,411,848.00 | 50,984,667.40 |
| 4.Balance at year-end | 59,512,503.29 | 59,512,503.29 | |
| II. Accumulated depreciation and accumulated amortization | |||
| 1.Balance at year-begin | 13,173,242.66 | 980,167.90 | 14,153,410.56 |
| 2.Increase this year | 2,468,454.19 | 54,092.71 | 2,522,546.90 |
| (1) Provision or amortization | 2,468,454.19 | 54,092.71 | 2,522,546.90 |
| 3.Decrease this year | 10,017,655.56 | 1,034,260.61 | 11,051,916.17 |
| (1) Converted to self-use assets | 10,017,655.56 | 1,034,260.61 | 11,051,916.17 |
| 4.Balance at year-end | 5,624,041.29 | 5,624,041.29 | |
| III. Impairment loss | |||
| IV. Book value | |||
| 1. Ending book value | 53,888,462.00 | 53,888,462.00 | |
| 2. Opening book value | 93,912,080.03 | 2,431,680.10 | 96,343,760.13 |
(2) No investment real estate measured by fair value at year-end.
(3) Particular about mortgage of investment property at year-end.
| Name | Original book value | Accumulated depreciation | Impairment provision | Book value |
| House and buildings | 5,795,017.72 | 2,155,236.77 | 3,639,780.95 |
(4) Investment real estate without property certification held
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
| Item | Book value | Reasons for failing to complete property rights certificate |
| J04 workshop | 29,587,163.79 | Related property rights in procedure |
| J03 workshop | 17,814,585.11 | Related property rights in procedure |
| J20 air compressor station workshop | 1,255,155.67 | Related property rights in procedure |
| J18 opening and closing office | 581,077.82 | Related property rights in procedure |
| Total | 49,237,982.39 |
13. Fixed assets
| Item | Book value at year-end | Book value at year-begin |
| Fixed assets | 2,315,983,923.20 | 2,104,697,429.76 |
| Disposal of fixed assets | 75,875,517.11 | 75,875,517.11 |
| Total | 2,391,859,440.31 | 2,180,572,946.87 |
13.1 Fixed assets
(1) Fixed assets
| Item | House and buildings | Machinery equipment | Transport equipment | Other equipment | Total |
| I. Original book value | |||||
| 1.Balance at year-begin | 1,523,939,695.75 | 1,503,518,277.04 | 33,309,514.17 | 179,439,886.87 | 3,240,207,373.83 |
| 2.Increase this year | 138,559,510.87 | 304,609,230.62 | 1,911,903.16 | 26,780,684.59 | 471,861,329.24 |
| (1) Purchase | 941,140.24 | 14,019,696.96 | 216,787.61 | 2,786,246.37 | 17,963,871.18 |
| (2) Construction in progress transfer-in | 90,045,551.23 | 290,589,533.66 | 1,695,115.55 | 23,924,025.34 | 406,254,225.78 |
| (3) Transfer-in of investment real estate | 47,572,819.40 | 47,572,819.40 | |||
| (4) Inventory transfer in for own use | 70,412.88 | 70,412.88 | |||
| 3.Decrease this year | 208,015.55 | 79,912,618.69 | 820,197.03 | 3,035,572.71 | 83,976,403.98 |
| (1) Dispose or retirement | 71,575.14 | 41,273,906.42 | 593,360.48 | 2,671,932.31 | 44,610,774.35 |
| (2) Construction in progress transfer-in | 38,638,712.27 | 38,638,712.27 | |||
| (3) Decreased for change of foreign rate | 226,836.55 | 363,640.40 | 590,476.95 | ||
| (4) Temporary estimated decrease | 136,440.41 | 136,440.41 | |||
| 4.Balance at year-end | 1,662,291,191.07 | 1,728,214,888.97 | 34,401,220.30 | 203,184,998.75 | 3,628,092,299.09 |
| II.Accumulated depreciation |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
| Item | House and buildings | Machinery equipment | Transport equipment | Other equipment | Total |
| 1.Balance at year-begin | 287,729,327.02 | 760,142,789.56 | 17,507,896.39 | 68,398,095.48 | 1,133,778,108.45 |
| 2.Increase this year | 63,588,552.96 | 148,710,758.35 | 2,873,612.55 | 16,711,492.15 | 231,884,416.01 |
| （1）Accrual | 53,570,897.40 | 148,710,758.35 | 2,873,612.55 | 16,711,492.15 | 221,866,760.45 |
| (2) Transfer-in of investment real estate | 10,017,655.56 | 10,017,655.56 | |||
| 3.Decrease this year | 4,344.20 | 52,547,247.62 | 616,205.98 | 2,404,805.09 | 55,572,602.89 |
| (1) Dispose or retirement | 4,344.20 | 37,870,248.65 | 519,386.51 | 2,266,949.45 | 40,660,928.81 |
| (2) Construction in progress transfer-in | 14,676,998.97 | 14,676,998.97 | |||
| (3) Decreased for change of foreign rate | 96,819.47 | 137,855.64 | 234,675.11 | ||
| 4.Balance at year-end | 351,313,535.78 | 856,306,300.29 | 19,765,302.96 | 82,704,782.54 | 1,310,089,921.57 |
| III. Impairment loss | |||||
| 1.Balance at year-begin | 1,584,226.14 | 147,609.48 | 1,731,835.62 | ||
| 2.Increase this year | 445,081.08 | 445,081.08 | |||
| 3.Decrease this year | 151,467.52 | 6,994.86 | 158,462.38 | ||
| (1) Dispose or retirement | 151,467.52 | 6,994.86 | 158,462.38 | ||
| (2) Construction in progress transfer-in | |||||
| 4.Balance at year-end | 1,877,839.70 | 140,614.62 | 2,018,454.32 | ||
| IV. Book value | |||||
| 1. Ending book value | 1,310,977,655.29 | 870,030,748.98 | 14,635,917.34 | 120,339,601.59 | 2,315,983,923.20 |
| 2. Opening book value | 1,236,210,368.73 | 741,791,261.34 | 15,801,617.78 | 110,894,181.91 | 2,104,697,429.76 |
The new fixed assets in this year mainly due to the 406,254,225.78 yuan transfer from construction inprocess; decrease of the fixed assets in Current Year mainly including assets dispose for retirement.
(2) No fixed assets temporary idle at year-end.
(3) Fixed assets for collateral at year-end
| Name | Original book value | Accumulated depreciation | Impairment provision | Book value |
| House and buildings | 473,274,720.00 | 109,485,841.31 | 363,788,878.69 |
(4) Fixed assets leased through financing lease at year-end
| Item | Original book value | Accumulated depreciation | Impairment provision | Book value |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2020 to 31 December 2020(Unless otherwise specified. RMB for record in the statement)
| Machinery equipment | 2,976,714.26 | 926,319.31 | 2,050,394.95 |
(5) Fixed assets leased through operating lease at year-end
| Item | Original book value | Accumulated depreciation | Impairment provision | Book value |
| House and buildings | 34,780,063.29 | 7,696,982.80 | 27,083,080.49 | |
| Machinery equipment | 36,925,786.94 | 9,027,584.47 | 27,898,202.47 | |
| Other equipment | 3,014,597.05 | 1,096,744.33 | 1,917,852.72 | |
| Total | 74,720,447.28 | 17,821,311.60 | 56,899,135.68 |
(6) Fixed assets without property certificate
| Item | Book value | Reason of not complete the property certificate |
| Testing and experiment center building | 39,938,274.11 | Related property rights in procedure |
| J07 electrical workshop | 34,847,989.57 | Related property rights in procedure |
| J02 workshop | 31,288,308.44 | Related property rights in procedure |
| J01 workshop | 29,000,207.38 | Related property rights in procedure |
| II section canteen of living area | 21,439,108.75 | Related property rights in procedure |
| J05 evaporator and condenser workshop | 23,156,397.31 | Related property rights in procedure |
| J06 central air-conditioner workshop | 17,623,844.42 | Related property rights in procedure |
| J50 finished product warehouse | 16,641,081.35 | Related property rights in procedure |
| J51 finished product warehouse | 16,105,955.96 | Related property rights in procedure |
| J53 finished product warehouse | 12,377,700.31 | Related property rights in procedure |
| J54 finished product warehouse | 11,511,224.56 | Related property rights in procedure |
| J52 finished product warehouse | 11,490,933.89 | Related property rights in procedure |
| J55 finished product warehouse | 10,544,342.51 | Related property rights in procedure |
| J56 finished product warehouse | 10,544,342.51 | Related property rights in procedure |
| 4# makeshift shelter (dormitory building transfer to capital) | 4,702,860.71 | Related property rights in procedure |
| J09 raw material warehouse | 6,279,480.18 | Related property rights in procedure |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020(Unless otherwise specified. RMB for record in the statement)
| Item | Book value | Reason of not complete the property certificate |
| J10 raw material warehouse | 4,905,671.26 | Related property rights in procedure |
| J11 raw material warehouse | 4,818,190.24 | Related property rights in procedure |
| J08 packing materials warehouse | 4,565,362.87 | Related property rights in procedure |
| Freezer subsidiary station | 3,071,376.35 | Related property rights in procedure |
| Hot water room for living area | 2,399,105.77 | Related property rights in procedure |
| J15 house of refrigerant forklift | 1,325,594.28 | Related property rights in procedure |
| J17 chemical storage | 1,301,827.80 | Related property rights in procedure |
| Circulating water pump room/equipment room | 821,466.40 | Related property rights in procedure |
| J16 chemical storage | 1,190,400.19 | Related property rights in procedure |
| Freezer salvage station | 244,333.89 | Related property rights in procedure |
| J19 main guard room | 327,222.08 | Related property rights in procedure |
| Freezer- 7# Workshop inspection room | 190,564.28 | Related property rights in procedure |
| J19A guard room | 206,667.08 | Related property rights in procedure |
| J19D guard room | 151,135.58 | Related property rights in procedure |
| J19E guard room | 151,135.58 | Related property rights in procedure |
| Total | 323,162,105.61 |
(7) No fixed assets held for sale at year-end
13.2 Disposal of fixed assets
| Item | Amount at year-end | Amount at year-begin | Reasons for disposal transferred |
| Relevant assets disposal for reserved lands | 75,875,517.11 | 75,875,517.11 | Relocation for land reserve |
Pursuant to the urban planning requirements of the People‘s Government of Hefei city, Hefei LandReserve Center plans to purchase and store the land use right of an integrated economic developmentzone of the Company located at Longgang of Hefei with an area of 103,978.9 sq.m. (Approximately
155.9684 mu, Land Use Right Certificate No.: Dong Guo Yong (2004) Zi No. 0200, the stated use ofthe land is for industrial purpose). The estimated consideration for purchasing and storage isRMB74.48 million. The land is mainly used for the Company‘s warehouse, product finishing
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
workshop and the factory of Zhongke Meiling. Pursuant to the purchasing and storage requirements ofland use right, the land will be purchased and stored with vacant possession. In April 2013, theCompany completed the relocation of occupants of the premises, and the net fixed assets in relation tothe land will transfer as disposal, accounting treatment will be conduct in line with relevant rules uponreceiving of the relocation compensation.Pursuant to the urban planning requirements of Hefei Municipal Government and the Government ofFeidong county, the land reserve center of Feidong county will purchase and store the land use right ofan economic development zone located at Feidong county, Hefei city, which is owned by theCompany‘s subordinate companies, Equator Electric and Equator Home Appliance, respectively, withan area of 19,245.09 sq.m. (Approximately 28.87 mu, Land Use Right Certificate No.: Dong GuoYong (2008) No. 0366, the stated use of the land is for industrial purpose) and an area of 46,161.9sq.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 storageis approximately 36 million yuan, of which the consideration for the land use right owned by EquatorElectric 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 netfixed assets in relation to the land will transfer as disposal, accounting treatment will be conduct inline with relevant rules upon receiving of the relocation compensation.
No impairment of relevant assets disposal for reserved lands at year-end.
14. Construction in progress
| Item | Balance at year-end | Balance at year-begin |
| Construction in progress | 60,775,088.96 | 252,494,792.31 |
| Total | 60,775,088.96 | 252,494,792.31 |
14.1 Construction in progress
(1) Details of construction in progress
| Item | Amount at year-end | Amount at year-begin | ||||
| Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
| Overseas product upgrade supporting box shell line, door shell line and some old product competitiveness | 9,837,906.27 | 9,837,906.27 | ||||
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020(Unless otherwise specified. RMB for record in the statement)
| Item | Amount at year-end | Amount at year-begin | ||||
| Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
| improvement projects | ||||||
| Technical transformation project of Zhongshan Changhong | 6,926,902.64 | 6,926,902.64 | 2,670,888.52 | 2,670,888.52 | ||
| Jiangxi Meiling – construction of the production line for producing one million energy-saving smart refrigeration annually | 4,049,896.54 | 4,049,896.54 | 434,062.08 | 434,062.08 | ||
| Meiling Living Area Apartment Renovation Project | 3,587,155.98 | 3,587,155.98 | ||||
| Construction of washing machine plant | 3,097,203.54 | 3,097,203.54 | 72,019,665.48 | 72,019,665.48 | ||
| Changhong Air Conditioner- relocation of production base and upgrading & expansion | 2,942,756.39 | 2,942,756.39 | 115,113,691.81 | 115,113,691.81 | ||
| New overseas case molding line project | 2,404,757.10 | 2,404,757.10 | ||||
| Capacity enlargement and technology improvement project for Air-conditioner Company | 1,724,400.82 | 1,724,400.82 | 6,848,640.93 | 6,848,640.93 | ||
| Project of the application of MES system during manufacturing | 1,670,775.59 | 1,670,775.59 | 7,259,356.79 | 7,259,356.79 | ||
| Construction of laboratory (inspection center) | 1,623,019.14 | 1,623,019.14 | 2,283,246.03 | 2,283,246.03 | ||
| Front-end expansion project of Hefei base with an annual output of 10 million refrigerator cabinets | 1,304,336.29 | 1,304,336.29 | ||||
| Production efficiency improvement project of the Line C for the overseas Refrigerator Manufacture Company | 904,741.38 | 904,741.38 | 1,327,155.18 | 1,327,155.18 | ||
| Overseas inflated evaporator products transferred to Jiangxi base production project | 685,133.49 | 685,133.49 | ||||
| Equipment to be installed | 386,124.34 | 386,124.34 | 16,790,792.47 | 16,790,792.47 | ||
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2020 to 31 December 2020(Unless otherwise specified. RMB for record in the statement)
| Item | Amount at year-end | Amount at year-begin | ||||
| Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
| Construction of intelligent manufacturing | 4,441,461.82 | 4,441,461.82 | ||||
| Line modification for R290 | 1,769,230.77 | 1,769,230.77 | ||||
| Upgrade project for the production line of Mianyang Meiling Intelligent Refrigerator | 666,500.00 | 666,500.00 | ||||
| Other petty projects | 19,629,979.45 | 19,629,979.45 | 20,870,100.43 | 20,870,100.43 | ||
| Total | 60,775,088.96 | 60,775,088.96 | 252,494,792.31 | 252,494,792.31 | ||
(2) Changes in significant construction in progress
| Projects | Book balance at period-begin | Increase in Current Year | Transfer to fixed assets in Current Year | Other decrease | Book balance at year-end | Source of funds |
| Changhong Air Conditioner- relocation of production base and upgrading & expansion | 115,113,691.81 | 25,772,031.69 | 137,942,967.11 | 2,942,756.39 | Self-raised | |
| Construction of washing machine plant | 72,019,665.48 | 68,014,540.32 | 134,714,463.33 | 2,222,538.93 | 3,097,203.54 | Self-raised/ Raise |
| Construction of laboratory (inspection center) | 2,283,246.03 | 6,953,047.49 | 7,613,274.38 | 1,623,019.14 | Raise |
(Continued)
| Projects | Budget (in 10 thousand Yuan) | Proportion of project investment in budget | Progress | Accumulated amount of interest capitalization | including: interest capitalized amount of Current Year | Interest capitalization rate of Current Year |
| Changhong Air Conditioner- relocation of production base and upgrading & expansion | 84,791.01 | 87.88% | 99% | 2,570,143.02 | ||
| Construction of washing machine plant | 37,121.00 | 98.59% | 99% | |||
| Construction of laboratory (inspection center) | 10,748.00 | 85.96% | 98% |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
15. Intangible assets
(1) Intangible assets
| Item | Land use right | Trademark special right | Non-patent technology | Other | Total |
| I. Original book value | |||||
| 1.Balance at year-begin | 866,310,249.56 | 283,292,439.34 | 417,638,699.74 | 14,698,878.33 | 1,581,940,266.97 |
| 2.Increase this year | 3,414,048.01 | 115,344,850.94 | 47,045,239.32 | 165,804,138.27 | |
| (1) Purchase | 2,200.01 | 2,200.01 | |||
| (2) Internal research | 115,289,623.59 | 47,045,239.32 | 162,334,862.91 | ||
| (3) Transfer-in of investment real estate | 3,411,848.00 | 3,411,848.00 | |||
| （4）Other | 55,227.35 | 55,227.35 | |||
| 3.Decrease this year | 67,625.33 | 67,625.33 | |||
| (1) Disposal | |||||
| （2）Other decreases | 67,625.33 | 67,625.33 | |||
| 4.Balance at year-end | 869,724,297.57 | 283,292,439.34 | 532,983,550.68 | 61,676,492.32 | 1,747,676,779.91 |
| II. Accumulated amortization | |||||
| 1.Balance at year-begin | 160,546,271.68 | 282,607,964.69 | 194,299,345.34 | 2,423,169.67 | 639,876,751.38 |
| 2.Increase this year | 19,435,789.18 | 684,474.65 | 113,864,885.83 | 6,046,283.44 | 140,031,433.10 |
| （1）Accrual | 18,401,528.57 | 684,474.65 | 113,864,885.83 | 6,046,283.44 | 138,997,172.49 |
| (2) Transfer-in of investment real estate | 1,034,260.61 | 1,034,260.61 | |||
| 3.Decrease this year | 12,397.98 | 12,397.98 | |||
| (1) Disposal | |||||
| （2）Other decreases | 12,397.98 | 12,397.98 | |||
| 4.Balance at year-end | 179,982,060.86 | 283,292,439.34 | 308,164,231.17 | 8,457,055.13 | 779,895,786.50 |
| III. Impairment loss | |||||
| 1.Balance at year-begin | 4,306,556.42 | 4,508,495.33 | 8,815,051.75 | ||
| 2.Increase this year | 22,114,421.01 | 22,114,421.01 |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2020 to 31 December 2020(Unless otherwise specified. RMB for record in the statement)
| Item | Land use right | Trademark special right | Non-patent technology | Other | Total |
| 3.Decrease this year | |||||
| 4.Balance at year-end | 26,420,977.43 | 4,508,495.33 | 30,929,472.76 | ||
| IV. Book value | |||||
| 1. Ending book value | 689,742,236.71 | 198,398,342.08 | 48,710,941.86 | 936,851,520.65 | |
| 2. Opening book value | 705,763,977.88 | 684,474.65 | 219,032,797.98 | 7,767,213.33 | 933,248,463.84 |
The intangible assets resulted from internal research takes 8.46% of the balance of intangible assets atyear-end
(2) No land use right without property certification done at year-end
(3) Up to end of the 2020, mortgage of intangible assets is as follows:
| Name | Property certificate serials | Area (M2) | Net book value | Note |
| Land use right | HGYJCZi No.: 0121 | 27,120.22 | 17,683,738.34 | |
| Land use right | Wan (2019) Property right of Hefei No.: 1148244/1148249/1148243/1148240/1148248/1148246/1148241/1148238/1149101/1148242/1148245/1148239/1148237/1148250/1148247/1149102 | 477,550.03 | 239,711,530.25 | |
| Land use right | Wan (2019) Property right of Feixi County No.: 0061435/0061445 | 33,383.10 | 13,536,059.81 | |
| Land use right | Wan (2019) Property right of Feixi County No.: 0061456/0061447/0061438/0061440/0061452/0061450/0061430/0061657 | 82,850.51 | 18,636,007.39 | |
| Total | 620,903.86 | 289,567,335.79 | ||
16. Development expense
| Item | Balance at year-begin | Increase this year | Decrease this year | Balance at year-end | |||
| Internal development expenditure | Other | Included in current profits and losses | Confirmed as intangible assets | Other | |||
| Technology development for Air-conditioner | 39,987,914.98 | 84,043,285.29 | 4,311,767.99 | 91,721,700.49 | 27,997,731.79 | ||
| Technology development for refrigerator | 61,090,744.59 | 58,674,546.89 | 4,121,419.29 | 70,613,162.42 | 45,030,709.77 | ||
| Total | 101,078,659.57 | 142,717,832.18 | 8,433,187.28 | 162,334,862.91 | 73,028,441.56 | ||
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2020 to 31 December 2020(Unless otherwise specified. RMB for record in the statement)
17. Goodwill
(1) Original value of goodwill
| Invested enterprise | Balance at year-begin | Increase this year | Decrease this year | Balance at year-end | ||
| Formation from enterprise merger | Other | Formation from enterprise merger | Other | |||
| Hefei Meiling Group Holdings Limited | 3,553,367.77 | 3,553,367.77 | ||||
| Total | 3,553,367.77 | 3,553,367.77 | ||||
(2) Impairment loss of goodwill
| Invested enterprise | Balance at year-begin | Increase this year | Decrease this year | Balance at year-end | ||
| Accrual | Other | Accrual | Other | |||
| Hefei Meiling Group Holdings Limited | 3,553,367.77 | 3,553,367.77 | ||||
| Total | 3,553,367.77 | 3,553,367.77 | ||||
Note: The Company‘s goodwill has been fully accrued for impairment reserves at year-end.
18. Deferred income tax assets
(1) Deferred income tax assets without the offset
| Item | Balance at year-end | Balance at year-begin | ||
| Deductible temporary difference | Deferred income tax assets | Deductible temporary difference | Deferred income tax assets | |
| Deferred income tax assets recognized from assets impairment | 122,853,362.96 | 18,427,787.28 | 65,074,900.25 | 9,761,235.04 |
| Deferred income tax assets recognized from accrual liability | 55,035,910.31 | 8,255,386.55 | 158,742,319.21 | 23,811,347.88 |
| Deferred income tax assets recognized from Dismission welfare | 13,326,014.64 | 1,998,902.20 | 16,996,022.45 | 2,549,403.37 |
| Deferred income tax assets recognized from deferred income | 107,392,156.36 | 16,108,823.46 | 109,766,307.31 | 16,464,946.10 |
| Deferred income tax assets recognized from ir-reparable losses | 545,833,222.08 | 81,874,983.31 | 295,681,201.10 | 44,352,180.17 |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2020 to 31 December 2020(Unless otherwise specified. RMB for record in the statement)
| Item | Balance at year-end | Balance at year-begin | ||
| Deductible temporary difference | Deferred income tax assets | Deductible temporary difference | Deferred income tax assets | |
| Accrued income tax assets | 3,467,314.27 | 520,097.14 | 3,427,103.89 | 514,065.58 |
| Total | 847,907,980.62 | 127,185,979.94 | 649,687,854.21 | 97,453,178.14 |
The Company‘s long-term equity investment impairment provisions are the investments in itssubsidiarie Meiling Candy Washing Machine Co., Ltd., expected to be cancelled in 2021, and theCompany also confirmed deferred income tax assets while confirming the impairment provisions. Thesubsidiaries have unrecovered losses, at the consolidation level, the deferred income tax assetsrecognized in the Company‘s long-term equity investment impairment provisions are adjusted to bethe deferred income tax assets generated from the recoverable losses.
(2) Deferred income tax liabilities without the offset
| Item | Balance at year-end | Balance at year-begin | ||
| Taxable temporary differences | Deferred income tax liability | Taxable temporary differences | Deferred income tax liability | |
| Recognized by fixed assets depreciation | 29,817,828.77 | 4,472,674.32 | 36,760,223.60 | 5,514,033.54 |
| Recognized by changes in fair value | 40,686,053.41 | 6,102,908.01 | 4,951,504.00 | 742,725.60 |
| Total | 70,503,882.18 | 10,575,582.33 | 41,711,727.60 | 6,256,759.14 |
(3) Details of unrecognized deferred income tax assets
| Item | Balance at year-end | Balance at year-begin |
| Deductible temporary difference | 110,167,308.91 | 148,160,001.57 |
| Deductible loss | 880,692,110.28 | 721,832,411.79 |
| Total | 990,859,419.19 | 869,992,413.36 |
19. Short-term loans
| Category | Balance at year-end | Balance at year-begin |
| Loan in pledge | 100,000,000.00 | 147,438,160.00 |
| Guaranteed loan | 66,180,000.00 | 46,794,941.14 |
| Loan in credit | 904,237,500.00 | 909,757,944.82 |
| Bill financing | 257,880,000.00 | |
| Interest payable | 7,911,550.55 | |
| Total | 1,336,209,050.55 | 1,103,991,045.96 |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020(Unless otherwise specified. RMB for record in the statement)
Short-term loans at Current Year-end:
1) The Company entered into a Cross-border financing loan business contract with Hefei Luyang Branch of CCB with12 months in term. Term of borrowing is from 10 March 2020 to 10 March 2021. Borrowing rate of 3.08%, the loanamount is 300,000,000.00 Yuan.
2) The Company entered into a Cross-border direct loan financing contract with Macau Branch of CGB with 12 monthsin term. Term of borrowing is from 19 March 2020 to 19 March 2021. Borrowing rate of 2.95%, the loan amount is50,000,000.00 Yuan.
3) The Company entered into a Liquidity Loan Contract with Hefei Economic and Technological Development ZoneBranch of BOC with 366 days in term. Term of borrowing is from 6 Jan. 2020 to 6 Jan. 2021. Fixed annual interest rateof 3.915%, the loan amount is 30,000,000.00 Yuan.
4) The Company entered into a Liquidity Loan Contract with Hefei Branch of China Postal Savings Bank Co., Ltd.with 12 months in term. Term of borrowing is from 23 April 2020 to 22 April 2021. Borrowing rate of 3.915%, the loanamount is 28,000,000.00 Yuan.
5) The Company entered into a Liquidity Loan Contract with Hefei Branch of SPD Bank with 182 days in term. Termof borrowing is from 10 Oct. 2020 to 10 April 2021. Fixed annual interest rate of 3.4%, the loan amount is25,000,000.00 Yuan.
6) The Company entered into a Loan Contract with Hefei Luyang Branch of Hangzhou Bank Co., Ltd. with 183 days interm. Term of borrowing is from 24 August 2020 to 23 Feb. 2021. Fixed annual interest rate of 3.45%, the loan amountis 20,000,000.00 Yuan.
7) The Company entered into a Loan Contract with Hefei Branch of Ping An Bank Co., Ltd. with 364 days in term.Term of borrowing is from 14 Dec. 2020 to 13 Dec. 2021. Fixed annual interest rate of 3.35%, the loan amount is10,000,000.00 Yuan.
8) The Company entered into a Domestic L/C Opening Contract with Hefei Changdong Road Branch of ICBC with 178days in term. Term of borrowing is from 7 Aug. 2020 to 1 Jan. 2021. Fixed annual interest rate of 2.52%, the loanamount is 20,000,000.00 Yuan.
9) The Company entered into a Agreement for Issuing Letter of Credit Business with Hefei Branch of SPD Bank with185 days in term. Term of borrowing is from 7 Aug. 2020 to 18 Feb. 2021. Fixed annual interest rate of 3.1%, the loanamount is 10,000,000.00 Yuan.10) The Company entered into a Forfaiting Business Contract with Feixi Branch of Jiujiang Bank Co., Ltd. with 365
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2020 to 31 December 2020(Unless otherwise specified. RMB for record in the statement)
days in term. Term of borrowing is from 16 April 2020 to 16 April 2021. Fixed annual interest rate of 2.825%, the loanamount is 50,000,000.00 Yuan.
11) The Company entered into a Contract on the Non-Recourse Transfer of Seller‘s Bonds under Domestic Letter ofCredit (Domestic Forfaiting Business) with Hefei Branch of China Everbright Bank Co., Ltd. Term of borrowing isfrom 12 June 2020 to 4 June 2021. Borrowing rate of 2.50%, the loan amount is 50,000,000.00 Yuan.
12) The Company entered into a Forfaiting Business Contract with Hefei Shouchun Branch of BCM with 360 days interm. Term of borrowing is from 29 Sept. 2020 to 24 Sept. 2021. Fixed annual interest rate of 3%, the loan amount is200,000,000.00 Yuan.
13) Subsidiary - Changhong Ruba Trading Company (Private) Limited entered into a Loan Agreement with KarachiBranch of ICBC, with the loan of 400,000,000.00 rupees in December 2020. Term of borrowing is from 17 December2020 to 5 November 2021. Borrowing rate of 8.2%.
14) The Company entered into a Loan Contract with China Merchants Bank Co., Ltd. Term of borrowing is from 21April 2020 to 9 April 2021. Borrowing rate of 0.65%, the loan amount is EUR 9,500,000.00.
15) Subsidiary - Hefei Meiling Nonferrous Metal Products Co., Ltd. entered into a Small business loan contract withICBC through the guarantee under Changhong Meiling. The principal of the loan is 10,000,000.00 yuan, term ofborrowing is from 27 March 2020 to 5 March 2021, and the interest rate is 4.05%.
16) The Company entered into a Forfaiting Business Contract with Anhui Branch of Bank of Communication, applyinga short-term loan of 100,000,000.00 yuan with bill pledge method. Term of borrowing is from 6 March 2020 to 1March 2021. Borrowing rate of 3.00%.
17) Subsidiary - Zhongke Meiling Cryogenic Technology Co., Ltd. entered into a Loans of Working Capital with AnhuiBranch of Bank of Communication, term of borrowing is is from 28 Feb. 2020 to 28 Feb. 2021, Fixed interest rate of
2.4%, the loan amount is 20,000,000.00 Yuan.
18) Subsidiary - Zhongke Meiling Cryogenic Technology Co., Ltd. entered into a RMB Working Capital Loan Contractwith Feixi Branch of CCB, term of borrowing is from 13 March 2020 to 12 March 2021, Fixed interest rate of 2.05%,the loan amount is 30,000,000.00 Yuan.
19) Subsidiary - Zhongke Meiling Cryogenic Technology Co., Ltd. entered into a RMB Working Capital Loan Contractwith Hefei Changjiang East Road Branch of ICBC, term of borrowing is from 18 March 2020 to 15 March 2021, Fixedinterest rate of 3.05%, the loan amount is 5,000,000.00 Yuan.20) Subsidiary - Zhongke Meiling Cryogenic Technology Co., Ltd. entered into a Contract for Loans of Working
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2020 to 31 December 2020(Unless otherwise specified. RMB for record in the statement)
Capital with Hefei Branch of Industrial Bank, term of borrowing is from 17 March 2020 to 16 March 2021, Fixedinterest rate of 3.05%, the loan amount is 9,900,000.00 Yuan.
21) Subsidiary - Zhongke Meiling Cryogenic Technology Co., Ltd. entered into a Contract for Loans of WorkingCapital with Hefei Branch of BOC, term of borrowing is from 25 November 2020 to 25 November 2021, Fixed interestrate of 3.3%, the loan amount is 10,000,000.00 Yuan.
20. Tradable financial liability
| Name | Balance at year-end | Balance at year-begin |
| Tradable financial liability | 4,584,076.51 | 1,081,534.93 |
| Including: Derivative financial liability | 4,584,076.51 | 1,081,534.93 |
21. Note payable
| Item | Balance at year-end | Balance at year-begin |
| Bank acceptance | 4,232,731,220.17 | 3,298,019,669.51 |
| Trade acceptance | 206,876,762.17 | 192,251,812.89 |
| Total | 4,439,607,982.34 | 3,490,271,482.40 |
22. Account payable
(1) Account payable
| Item | Amount at year-end | Amount at year-begin |
| Total | 2,851,999,684.30 | 2,343,116,374.58 |
| Including: Amount aged over 1 year | 74,369,337.19 | 76,194,618.91 |
(2) No major account payable with over one year book age at year-end.
23. Contract liabilities
Contract liabilities
| Item | Balance at year-end | Balance at year-begin |
| Total | 522,550,891.28 | 371,713,321.84 |
| Including: Amount aged over 1 year | 91,437,631.00 | 70,280,613.82 |
24. Wages payable
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020(Unless otherwise specified. RMB for record in the statement)
(1) Category
| Item | Balance at year-begin | Increase this year | Decrease this year | Balance at year-end |
| Short-term compensation | 177,402,906.03 | 1,444,772,071.51 | 1,359,316,674.08 | 262,858,303.46 |
| After-service welfare- defined contribution plans | 7,453,793.72 | 79,821,345.13 | 63,624,847.89 | 23,650,290.96 |
| Dismiss welfare | 11,650,474.93 | 4,925,212.81 | 12,762,506.11 | 3,813,181.63 |
| Total | 196,507,174.68 | 1,529,518,629.45 | 1,435,704,028.08 | 290,321,776.05 |
(2) Short-term compensation
| Item | Balance at year-begin | Increase this year | Decrease this year | Balance at year-end |
| Wages, bonuses, allowances and subsidies | 170,288,735.22 | 1,291,436,992.79 | 1,215,594,957.72 | 246,130,770.29 |
| Welfare for workers and staff | 639,308.36 | 39,019,498.44 | 38,502,660.57 | 1,156,146.23 |
| Social insurance | 1,770,245.68 | 48,792,664.03 | 40,368,795.87 | 10,194,113.84 |
| Including: Medical insurance | 1,617,788.73 | 45,094,056.52 | 37,220,066.00 | 9,491,779.25 |
| Work injury insurance | 63,191.51 | 1,533,453.24 | 1,134,951.47 | 461,693.28 |
| Maternity insurance | 89,265.44 | 2,165,154.27 | 2,013,778.40 | 240,641.31 |
| Housing accumulation fund | 3,586,116.49 | 61,977,189.92 | 60,663,252.42 | 4,900,053.99 |
| Labor union expenditure and personnel education expense | 1,118,500.28 | 3,545,726.33 | 4,187,007.50 | 477,219.11 |
| Total | 177,402,906.03 | 1,444,772,071.51 | 1,359,316,674.08 | 262,858,303.46 |
(3) Defined contribution plans
| Item | Balance at year-begin | Increase this year | Decrease this year | Balance at year-end |
| Basic endowment insurance | 5,213,876.36 | 75,966,500.88 | 60,065,240.57 | 21,115,136.67 |
| Unemployment insurance | 2,239,917.36 | 3,854,844.25 | 3,559,607.32 | 2,535,154.29 |
| Total | 7,453,793.72 | 79,821,345.13 | 63,624,847.89 | 23,650,290.96 |
25. Tax payable
| Item | Balance at year-end | Balance at year-begin |
| Value-added tax | 41,769,712.31 | 31,073,647.86 |
| Enterprise income tax | 9,941,386.84 | 2,100,004.27 |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
| Item | Balance at year-end | Balance at year-begin |
| Individual income tax | 2,781,283.48 | 3,080,366.29 |
| Urban maintenance and construction tax | 4,056,939.25 | 3,279,877.94 |
| Real estate tax | 6,370,190.14 | 6,023,111.75 |
| Land use tax | 2,701,128.78 | 2,757,210.52 |
| Educational surtax | 2,977,254.61 | 2,389,535.13 |
| Stamp tax | 2,213,950.91 | 3,033,620.58 |
| Construction fund of Water Conservancy Projects | 643,321.87 | 759,372.01 |
| Treatment fund for abandon electrics & electronics | 13,835,511.00 | 12,489,459.00 |
| Other | 2,391,754.71 | 1,572,186.31 |
| Total | 89,682,433.90 | 68,558,391.66 |
26. Other account payable
| Item | Balance at year-end | Balance at year-begin |
| Interest payable | 12,340,385.61 | |
| Dividend payable | 4,466,628.25 | 3,579,491.94 |
| Other account payable | 720,235,058.47 | 673,557,725.66 |
| Total | 724,701,686.72 | 689,477,603.21 |
26.1 Interest payable
(1) Category
| Item | Balance at year-end | Balance at year-begin |
| Interest on long-term borrowings for repayment of principal of installment maturity | 466,340.02 | |
| Interest of short-term loans | 11,874,045.59 | |
| Total | 12,340,385.61 |
(2) No significant overdue and unpaid interest at year-end.
26.2 Dividends payable
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2020 to 31 December 2020(Unless otherwise specified. RMB for record in the statement)
| Item | Balance at year-end | Balance at year-begin |
| China Life Insurance (Group) Company | 263,813.22 | 239,221.62 |
| China Life Insurance Group Co., Ltd. | 395,719.83 | 358,832.43 |
| BOC- Fullgoal Tianyi Securities Investment Fund | 153,697.50 | 153,697.50 |
| Hefei Branch of BOC | 329,766.50 | 299,027.00 |
| Hefei collective industry association | 329,765.99 | 299,026.54 |
| Entrust Investment Wuhu of Provincial ABC | 263,813.22 | 239,221.62 |
| Other units | 2,730,051.99 | 1,990,465.23 |
| Total | 4,466,628.25 | 3,579,491.94 |
26.3 Other account payable
(1) Other account payable by nature
| Nature | Balance at year-end | Balance at year-begin |
| 1.Accrued expenses (expenses occurred without reimbursed) | 387,297,440.24 | 487,992,668.34 |
| 2. Receivables received temporary and deducted temporary | 30,995,522.33 | 14,950,208.02 |
| 3.Deposit, margin | 163,264,455.70 | 114,946,522.03 |
| 4.Not the come-and-go with related parties in statement scope | 126,828,746.47 | 14,101,588.30 |
| 5. Other | 11,848,893.73 | 41,566,738.97 |
| Total | 720,235,058.47 | 673,557,725.66 |
(2) At end of Current Year, the major other account payable with account age over one year mainlyrefers to the sale of margin.
27. Non-current liability due within one year
(1) Classification of non-current liability due within one year
| Item | Balance at year-end | Balance at year-begin |
| Long-term loan principal and interest due within one year | 407,141,888.08 | |
| Long term account payable due within one year | 683,262.66 | 1,708,193.90 |
| Total | 407,825,150.74 | 1,708,193.90 |
28. Other current liabilities
(1) Category of other current liabilities
| Item | Balance at year-end | Balance at year-begin |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2020 to 31 December 2020(Unless otherwise specified. RMB for record in the statement)
| Item | Balance at year-end | Balance at year-begin |
| Pending sales tax | 20,376,696.94 | 53,435,873.13 |
| Factoring fees payable | 2,547,001.79 | |
| Total | 22,923,698.73 | 53,435,873.13 |
29. Long term borrowings
(1) Category of long term borrowings
| Category | Amount at year-end | Amount at year-begin |
| Loan in mortgage | 188,000,000.00 | 101,280,000.00 |
| Loan in credit | 300,000,000.00 | |
| Interest payable | 231,439.30 | |
| Total | 188,231,439.30 | 401,280,000.00 |
(2) Long-term borrowings at year-end
| Loan from | Borrowing day | Returning day | Foreign currency | Interest rate | Amount at year-end (RMB) | Amount at year-begin (RMB) |
| EIBC (Export-Import Bank) Anhui Province Branch Note 1 | 2020/3/26 | 2026/11/25 | RMB | 4.555% | 98,000,000.00 | |
| EIBC (Export-Import Bank) Anhui Province Branch Note 2 | 2019/12/23 | 2026/12/23 | RMB | 4.605% | 90,000,000.00 | 100,000,000.00 |
| EIBC (Export-Import Bank) Anhui Province Branch | 2019/05/30 | 2021/05/30 | RMB | 3.685% | 300,000,000.00 | |
| Hefei Shouchun branch of Bank of Communications Note 3 | 2020/6/15 | 2021/7/15 | RMB | 3.75% | ||
| Ministry of Finance of Hefei Note 4 | 2006/11/09 | 2021/11/08 | RMB | 1.80% | 1,280,000.00 | |
| Total | 188,000,000.00 | 401,280,000.00 |
Note 1: The Company signed a ―Loan Contract (Export Seller‘s Credit)‖ with the Anhui Branch of theExport-Import Bank, the contract period is 2435 days, and the loan period is from March 26, 2020 toNovember 25, 2026. The borrowing rate is determined by the market quoted interest rate of loans witha term of more than 5 years minus 0.195%, which fluctuates annually, and the loan amount is98,000,000.00 yuan.Note 2: The Company signed a ―Loan Contract (Promoting Domestic Opening-up of Loans-Fixed
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
Assets)‖ with Anhui Branch of the Export-Import Bank of China, with the company's fixed assetsand intangible assets as collateral for a long-term loans of 100 million yuan. The contractual termis 83 months, the borrowing period is from December 23, 2019 to November 25, 2026, the borrowingrate is determined by the market quoted interest rate of loans with a term of more than 5 years minus
0.195%, which fluctuates annually, and the loan amount is 100,000,000.00 yuan. According to therepayment schedule agreed with the bank, 3,000,000.00 yuan has been repaid, it is planned to repay3,000,000.00 yuan on June 25, 2021 and 4,000,000.00 yuan on December 25, 2021. The totalamount of 7,000,000.00 yuan has been reclassified to non-current liabilities due within one year.The ending balance is 90,000,000.00 yuan.
Note 3: the company signed the working capital loan contract with Hefei Shouchun Branch ofBank of Communications Co., Ltd., borrowed 100 million yuan from Hefei Shouchun Branch ofBank of Communications to supplement working capital, the loan period is from June 15, 2020 toJuly 15, 2021, the loan interest rate is 3.75%, 1,000,000.00 yuan has been repaid in this period,the remaining principal of 99,000,000.00 yuan at the end of the period has been reclassified tonon-current liabilities due within one year
Note4: In August of 2006, the Company signed Asset Mortgage Agreement with Ministry of Financeof Hefei. It takes five industry crusher chambers which cover an area of 2,322.98 square meters asmortgage for the Company to get the lending of treasury bond fund which has 15-year term andworthy of 7,040,000 yuan from the Ministry of Finance of Hefei. The capital on-lending began to bearinterest from the appropriate date (November 9, 2006), which would be paid by stages in the loanperiod to Ministry of Finance of Hefei by the Company. The first four years were grace period, duringwhich the annual interest rate was subject to floating interest rate (the annual interest rate was theannual interest rate of one year fixed deposit plus 0.3%). On 1 March 2013, according to the LetterRelating to Ceasing Process of Other Securities in respect of the Properties in Feidong LonggangIndustrial Park of Hefei Meiling Co., Ltd. (HCJ (2006) No.85) issued by the finance office of Hefei,Meiling commenced the national purchase of its land parcels in Longgang in compliance with the landplanning of Hefei municipal government, which required its properties in Longgang land parcel to beunrestricted. The real estate for mortgage lifted in 2006 of the Company with registration No.HGYJCZ No.0121 which was used as the security for treasury bonds lending capital (details were setout in Note VI.15). As of December 31, 2020, the remaining outstanding 640,000.00 yuan hasbeen reclassified to non-current liabilities due within one year
30. Long-term payable
| Item | Balance at year-end | Balance at year-begin |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020(Unless otherwise specified. RMB for record in the statement)
| Item | Balance at year-end | Balance at year-begin |
| Long-term account payable | 175,323.91 | 1,486,921.44 |
| Special payable | 1,530,000.00 | 1,530,000.00 |
| Total | 1,705,323.91 | 3,016,921.44 |
30.1 Classify by nature
| Nature | Balance at year-end | Balance at year-begin |
| Financing lease | 175,323.91 | 1,486,921.44 |
30.2 Special payable
| Item | Balance at year-begin | Increase this year | Decrease this year | Balance at year-end | Reason |
| Special funds for technological transformation from Zhongshan | 1,530,000.00 | 1,530,000.00 | Technology plan project in Zhongshan City |
31. Long-term wage payable
| Item | Balance at year-end | Balance at year-begin |
| Dismissal welfare | 10,571,526.69 | 13,774,110.61 |
According to the internal early retirement policy, the long-term payable dismissal welfare bears by theCompany up to end of Current Year amounting to RMB 10,571,526.69
32. Accrual liability
| Item | Balance at year-end | Balance at year-begin | Reason |
| Product quality guarantee note1 | 14,487,294.50 | 15,427,220.80 | Guarantee of product |
| Guarantee fund for quality service note1 | 47,905,440.57 | 150,671,923.17 | Guarantee of product |
| Total | 62,392,735.07 | 166,099,143.97 |
Note 1: Product quality deposit is the maintenance expense provided by the Company under the national policy, whilequality service special guarantees capital is the warranty costs provided for product quality in addition to such policy.Parts of the commitments on product quality assurance beyond the national three guarantees policy are expired in 2020,the accrual liability that have not been anticipated has written-off in Current Year, actually 102,184,807.27 Yuanwritten-off.
33. Deferred income
(1) Classification of deferred income
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
| Item | Balance at year-begin | Increase this year | Decrease this year | Balance at year-end | Reason |
| Government subsidies---subsidies of development project | 135,392,959.96 | 17,863,000.00 | 16,379,622.87 | 136,876,337.09 | |
| Government subsidies---subsidies of Relocation | 44,578,011.96 | 4,076,898.93 | 40,501,113.03 | ||
| Total | 179,970,971.92 | 17,863,000.00 | 20,456,521.80 | 177,377,450.12 |
(2) Government subsidy
| Item | Amount at year-begin | New subsidy in Current Year | Amount reckoned into other income in Current Year | Other changes | Amount at year-end | Assets related/Income related |
| Demonstration factory construction for the intelligent manufacturing of intelligent air-conditioner | 49,500,000.00 | 49,500,000.00 | Assets related | |||
| Demolition compensation of Changhong Meiling | 40,613,394.80 | 2,297,010.33 | 38,316,384.47 | Assets related | ||
| Adaptability improvement on new coolants production | 11,824,908.42 | 2,364,981.72 | 9,459,926.70 | Assets related | ||
| Subsidy for industrial development policy from Hefei for first half of 2018 | 9,044,000.00 | 1,250,000.00 | 7,794,000.00 | Assets related | ||
| Centre for external cooperation of the environmental protection | 2,538,300.00 | 5,076,600.00 | 7,614,900.00 | Assets related | ||
| Changhong Air Conditioner- relocation of production base and upgrading & expansion | 6,880,000.00 | 6,880,000.00 | Assets related | |||
| Key chip and module for transducer used and detection capacity building | 6,840,000.00 | 6,840,000.00 | Assets related | |||
| Subsidy for industrial development policy from Hefei for second half of 2019 | 7,154,200.00 | 1,788,550.00 | 5,365,650.00 | Assets related | ||
| RESEARCH AND APPLICATION OF THE VISA (VARIABLE FREQUENCY VOLUME INTEGRATED INTELLIGENT | 5,872,093.04 | 1,409,302.32 | 4,462,790.72 | Assets related |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2020 to 31 December 2020(Unless otherwise specified. RMB for record in the statement)
| Item | Amount at year-begin | New subsidy in Current Year | Amount reckoned into other income in Current Year | Other changes | Amount at year-end | Assets related/Income related |
| AIR-CONDITIONER) | ||||||
| Special fund, government subsidy CZ059001 | 4,200,000.00 | 4,200,000.00 | Assets related | |||
| Policy funds for manufacturing a strong province, subsidy for equipment for the technological transformation of industrial strong base | 4,375,000.00 | 625,000.00 | 3,750,000.00 | Assets related | ||
| Subsidy for industrial development policy from Hefei for first half of 2020 | 3,476,800.00 | 36,216.67 | 3,440,583.33 | Assets related | ||
| Government subsidy for new plant construction - industrialization of cryogenic refrigeration equipment | 3,791,666.67 | 500,000.00 | 3,291,666.67 | Assets related | ||
| Subsidies for intelligent transformation & upgrading of enterprises from the new industrialization policy in economic development zone | 3,886,414.58 | 605,675.00 | 3,280,739.58 | Assets related | ||
| Industrialization of intelligent white household appliances software platform and typical application research and development | 3,030,303.05 | 727,272.72 | 2,303,030.33 | Assets related | ||
| Research and application of the MCU chip for inverter control | 2,300,000.00 | 2,300,000.00 | Assets related | |||
| Demolition compensation of Jiangxi Meiling | 3,964,617.16 | 1,779,888.60 | 2,184,728.56 | Assets related | ||
| Special funds for strategic emerging industry and high-end growth industry | 2,000,000.00 | 2,000,000.00 | Assets related | |||
| Subsidy for characteristic innovation and entrepreneurship carrier project from Hefei economic & development zone | 2,000,000.00 | 2,000,000.00 | Assets related | |||
| Equipment subsidy for the industrial base | 1,782,083.33 | 235,000.00 | 1,547,083.33 | Assets related |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2020 to 31 December 2020(Unless otherwise specified. RMB for record in the statement)
| Item | Amount at year-begin | New subsidy in Current Year | Amount reckoned into other income in Current Year | Other changes | Amount at year-end | Assets related/Income related |
| technical renovation from Economic and Information Commission | ||||||
| Subsidy from Zhongshan Finance Bureau (CZ028001 provincial special project 2019) | 1,703,353.19 | 305,646.49 | 1,397,706.70 | Assets related | ||
| Upgrade project for the production line of Mianyang Meiling Intelligent Refrigerator | 1,514,166.68 | 197,499.96 | 1,316,666.72 | Assets related | ||
| Subsidy for equipment purchasing for Hefei Tech. Improvement project in 2017 | 1,358,630.00 | 179,160.00 | 1,179,470.00 | Assets related | ||
| Subsidy for purchase of R & D instruments and equipment | 768,687.50 | 280,900.00 | 167,482.30 | 882,105.20 | Assets related | |
| Technical transformation of the Athena project | 4,877,812.50 | 4,008,124.98 | 869,687.52 | Assets related | ||
| Promotion of the energy-saving room air conditioner | 1,069,072.21 | 210,309.24 | 858,762.97 | Assets related | ||
| Promoting the new industry ( annual output of 0.6 million medium& large volume environmental protection and energy saving freezer) | 1,065,443.73 | 304,412.52 | 761,031.21 | Assets related | ||
| Emerging Industry Base Fund Support Item | 620,000.00 | 620,000.00 | Assets related | |||
| Robot policy-rewards for purchasing robots | 561,000.00 | 5,843.74 | 555,156.26 | Assets related | ||
| Special fund for technical improvement | 171,540.99 | 375,700.00 | 63,193.35 | 484,047.64 | Assets related | |
| 2018 Zhongshan Special fund for industrial development - Special topic of technical transformation | 730,232.55 | 265,723.80 | 464,508.75 | Assets related | ||
| Special fund for technical improvement | 478,116.29 | 61,203.83 | 416,912.46 | Assets related | ||
| Technical transformation of refrigerator evaporator workshop | 454,687.50 | 60,625.00 | 394,062.50 | Assets related | ||
| Technical transformation subsidy | 317,800.00 | 108,581.67 | 209,218.33 | Assets related |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020(Unless otherwise specified. RMB for record in the statement)
| Item | Amount at year-begin | New subsidy in Current Year | Amount reckoned into other income in Current Year | Other changes | Amount at year-end | Assets related/Income related |
| Technical renovation of air conditioner production line | 286,596.77 | 95,829.50 | 190,767.27 | Assets related | ||
| Refrigerator evaporator workshop | 186,295.31 | 29,033.04 | 157,262.27 | Assets related | ||
| Subsidy for the development on production line technical reform for green-friendly high-quality metal pipe | 129,493.23 | 40,892.60 | 88,600.63 | Assets related | ||
| Freezer project of Changhong Meiling | 734,062.42 | 734,062.42 | Assets related | |||
| Total | 179,970,971.92 | 17,863,000.00 | 20,456,521.80 | 177,377,450.12 |
34. Share capital
| Item | Balance at year-begin | Change during the period (+、-) | Balance at year-end | ||||
| New shares issued | Bonus share | Shares transferred from capital reserve | Other | Subtotal | |||
| Total shares | 1,044,597,881.00 | 1,044,597,881.00 | |||||
35. Capital reserve
| Item | Amount at year-begin | Increase this year | Decrease this year | Amount at year-end |
| Share premium | 2,636,193,356.40 | 126,386.27 | 655,776.25 | 2,635,663,966.42 |
| Other capital reserve | 48,173,262.70 | 48,173,262.70 | ||
| Total | 2,684,366,619.10 | 126,386.27 | 655,776.25 | 2,683,837,229.12 |
Note: Changes in equity premium this year were due to: 1. this year‘s new increase of the write-off ofnon-public issuance fees that were tentatively estimated to be no longer paid in 2016; 2. this year‘sdecrease was due to the acquisition of part of the minority shareholders‘ equity of Wuhan MeizhirongElectric AppliancesMarketing Co., Ltd., Changhong Meiling Household Appliances Technology Co.,Ltd., Chengdu Meiling Electric Appliances Marketing Co., Ltd., and Shanghai Meiling ElectricAppliances Marketing Co., Ltd., resulting in the difference between the newly acquired long-termequity investment and the net asset shares that should be continuously calculated from the date ofpurchase of the subsidiaries according to the newly-added shareholding ratio and the the handling feefor repurchasing B shares.
36. Treasury stock
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2020 to 31 December 2020(Unless otherwise specified. RMB for record in the statement)
| Item | Balance at year-begin | Increase this year | Decrease this year | Balance at year-end |
| Repurchase of B shares | 9,929,336.18 | 9,929,336.18 | ||
| Total | 9,929,336.18 | 9,929,336.18 |
Note: The Company convened the 40th meeting of the ninth board of directors, the 21st meeting of theninth board of supervisors, and the 3rd extraordinary general meeting of shareholders in 2020 on July27, 2020 and August 18, 2020, which reviewed and approved the Proposal on the Repurchase ofCertain Domestically Listed Foreign Shares (B Shares) of the Company. As of December 31, 2020, atotal of 5,552,151 shares were repurchased at a repurchase price of no more than HK$2.21 per share(tax included), the total repurchase transaction price was HK$11,699,465.27, and the real-timeexchange rate was equivalent to 9,929,336.18 yuan.
37. Other comprehensive income
| Item | Balance at year-begin | Current Year | Balance at year-end | ||||
| Account before income tax in Current Year | Less: written in other comprehensive income in previous period and carried forward to gains and losses in current period | Less：Income tax expenses | Belong to parent company after tax | Belong to minority shareholders after tax | |||
| Other comprehensive income re-divided into gains/losses | |||||||
| Including: conversion difference arising from foreign currency financial statement | -18,931,430.36 | -2,992,457.19 | -2,519,653.81 | -472,803.38 | -21,451,084.17 | ||
38. Surplus reserves
| Item | Amount at year-begin | Increase this year | Decrease this year | Amount at year-end |
| Statutory surplus reserve | 295,179,158.04 | 5,577,930.23 | 300,757,088.27 | |
| Discretionary surplus reserve | 115,607,702.16 | 115,607,702.16 | ||
| Total | 410,786,860.20 | 5,577,930.23 | 416,364,790.43 |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2020 to 31 December 2020(Unless otherwise specified. RMB for record in the statement)
39. Retained profit
| Item | Current Year | Last Year |
| Amount at the end of last year | 884,127,743.42 | 904,232,582.87 |
| Add: adjustment from undistributed profit at period-begin | -2,734,328.91 | |
| Including: retroactive adjustment by Accounting Standards for Business Enterprise | ||
| change of accounting policy | -2,734,328.91 | |
| Correction of former material error | ||
| Change of combination scope under common control | ||
| Amount at the beginning of this year | 884,127,743.42 | 901,498,253.96 |
| Add: net profit attributable to shareholders of parent company for this year | -85,565,716.91 | 56,441,479.14 |
| Less: withdraw of statutory surplus reserve | 5,577,930.23 | 11,136,116.82 |
| withdraw of discretionary surplus reserve | ||
| Withdraw of general risk provision | ||
| Dividend payable for ordinary shares | 52,229,894.05 | 62,675,872.86 |
| Dividend of ordinary shares transferred to share capital | ||
| Amount at the end of this year | 740,754,202.23 | 884,127,743.42 |
40. Operation income and operation cost
(1) Operation income and operation cost
| Item | Current Year | Last Year | ||
| Income | Cost | Income | Cost | |
| Main business | 14,154,240,737.32 | 11,709,373,550.27 | 15,442,277,862.82 | 12,416,146,774.23 |
| Other business | 1,233,809,492.35 | 1,141,498,122.30 | 1,110,975,032.11 | 1,039,545,602.62 |
| Total | 15,388,050,229.67 | 12,850,871,672.57 | 16,553,252,894.93 | 13,455,692,376.85 |
(2) Main business classified according to product
| Product | Current Year | Last Year | ||
| Operation income | Operation cost | Operation income | Operation cost | |
| Refrigerator, freezer | 7,677,640,685.10 | 6,148,588,872.52 | 7,904,855,681.11 | 6,064,938,890.53 |
| Air-conditioner | 4,619,288,893.44 | 4,053,771,792.10 | 5,908,762,786.45 | 4,996,871,222.18 |
| Washing machine | 466,805,675.50 | 384,583,731.12 | 434,111,186.88 | 353,622,961.34 |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
| Product | Current Year | Last Year | ||
| Operation income | Operation cost | Operation income | Operation cost | |
| Small household appliances and kitchen and bathroom | 1,143,165,497.06 | 958,061,925.19 | 993,937,389.59 | 835,102,165.41 |
| Other | 247,339,986.22 | 164,367,229.34 | 200,610,818.79 | 165,611,534.77 |
| Total | 14,154,240,737.32 | 11,709,373,550.27 | 15,442,277,862.82 | 12,416,146,774.23 |
(3) Main business classified according to sales region
| Region | Current Year | Last Year | ||
| Operation income | Operation cost | Operation income | Operation cost | |
| Domestic | 9,174,395,337.92 | 7,413,002,117.96 | 11,534,341,837.69 | 9,040,203,991.36 |
| Overseas | 4,979,845,399.40 | 4,296,371,432.31 | 3,907,936,025.13 | 3,375,942,782.87 |
| Total | 14,154,240,737.32 | 11,709,373,550.27 | 15,442,277,862.82 | 12,416,146,774.23 |
Top five clients have income in sales of RMB 6,584,401,244.38 in total, a 42.79% in totaloperation income.
41. Business tax and extra charges
| Item | Current Year | Last Year |
| Treatment fund for abandon electrics & electronics | 54,489,675.00 | 60,529,942.00 |
| City construction tax | 27,164,098.44 | 30,493,037.22 |
| Extra charge for education and local education surcharge | 20,252,422.13 | 22,102,924.13 |
| Real estate tax | 19,343,805.61 | 17,137,312.39 |
| Stamp duty | 12,839,245.15 | 12,018,022.40 |
| Land use tax | 7,473,391.72 | 7,029,712.20 |
| Water fund | 7,156,421.01 | 2,634,354.33 |
| Other | 1,596,453.38 | 1,120,422.24 |
| Total | 150,315,512.44 | 153,065,726.91 |
42. Sales expense
| Item | Current Year | Last Year |
| Salary, extra charges and labor service expenses | 602,311,290.04 | 652,044,483.91 |
| Transport expenses | 507,219,049.25 | 499,344,342.58 |
| Market support expenses | 300,981,172.56 | 470,013,932.98 |
| Air conditioner installation expenses | 211,809,047.10 | 256,658,116.20 |
| Storage lease expenses | 93,417,953.55 | 117,617,330.25 |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020(Unless otherwise specified. RMB for record in the statement)
| Item | Current Year | Last Year |
| National three guarantees expense | 90,872,070.92 | 103,386,444.62 |
| Service support expenses | 39,269,346.08 | 34,245,427.34 |
| Travelling expenses | 27,679,048.85 | 49,979,196.42 |
| Insurance expenses | 14,608,773.95 | 6,706,060.15 |
| Depreciation expenses | 7,984,786.81 | 7,344,357.95 |
| Business activity expenses | 7,737,646.92 | 22,988,306.75 |
| Vehicle expenses | 1,692,392.60 | 1,405,277.27 |
| Advertising expenses | 1,423,006.42 | 21,419,915.53 |
| House-lease expenses | 1,085,901.86 | 18,973,583.57 |
| Communication expenses | 1,107,112.94 | 5,715,469.87 |
| Meeting organization expenses | 907,896.51 | 11,046,982.91 |
| Other expenses | 35,697,303.20 | 41,473,291.65 |
| Total | 1,945,803,799.56 | 2,320,362,519.95 |
43. Administration expense
| Item | Current Year | Last Year |
| Salary and social insurance etc. | 170,017,710.90 | 187,993,971.35 |
| Depreciation | 19,860,652.31 | 19,205,351.97 |
| Amortized intangible assets | 18,997,141.21 | 19,321,311.93 |
| Water and electricity fee | 6,596,531.99 | 15,055,164.38 |
| Domestic travelling fee | 3,138,305.00 | 6,681,174.67 |
| Property insurance fee | 5,727,401.94 | 4,539,551.94 |
| Business activities fee | 3,421,679.60 | 5,132,130.61 |
| Office fee | 1,847,681.31 | 5,116,649.46 |
| Board fees | 1,446,841.30 | 1,546,949.10 |
| Inspection and authentication fee | 648,176.21 | 2,203,362.58 |
| Other expenses | 48,543,562.79 | 63,891,525.83 |
| Total | 280,245,684.56 | 330,687,143.82 |
44. R&D expenses
| Item | Current Year | Last Year |
| Salary and social insurance etc. | 124,899,251.69 | 110,566,764.34 |
| Amortized intangible assets | 114,668,760.56 | 93,222,550.36 |
| Trial fee of R&D | 44,713,078.54 | 45,301,220.97 |
| Technical development cost | 14,434,361.38 | 15,721,270.26 |
| Inspection and authentication fee | 15,455,566.85 | 13,478,419.82 |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
| Item | Current Year | Last Year |
| Depreciation | 15,179,901.55 | 9,640,335.06 |
| Cost of mould | 5,534,614.33 | 5,407,099.44 |
| Software royalty | 755,542.28 | 2,424,431.50 |
| Domestic travel expenses | 969,236.31 | 1,964,177.16 |
| Other expenses | 44,028,609.42 | 36,492,420.78 |
| Total | 380,638,922.91 | 334,218,689.69 |
45. Financial expenses
| Item | Current Year | Last Year |
| Interest expenditure | 88,262,152.17 | 93,523,492.74 |
| Less: Interest income | 139,603,245.84 | 133,568,862.29 |
| Add: exchange loss | 33,026,909.13 | 17,118,898.27 |
| Procedure charge expenditure | 19,928,603.14 | 8,795,468.59 |
| Discount expenditure | -7,144,403.44 | -85,047.91 |
| Total | -5,529,984.84 | -14,216,050.60 |
46. Other income
| Item | Current Year | Last Year |
| Industrial development policy subsidy | 28,058,461.33 | 1,250,000.00 |
| Subsidy for export credit insurance | 7,516,778.79 | 1,157,100.00 |
| Subsidy for employment stable | 5,520,715.46 | 35,675,926.90 |
| Immediate refund of VAT for software products | 4,858,596.32 | 6,349,543.15 |
| Technical transformation of the Athena project | 4,008,124.98 | 4,286,250.00 |
| Some policy subsidies to support the development of digital economy in Anhui | 3,500,000.00 | 1,800,000.00 |
| Enterprise policy funds from Economic and Trade Development Bureau in Hefei economic development zone | 3,074,766.67 | 3,500,000.00 |
| Special subsidy for Nanjing Port | 2,571,170.00 | 1,234,485.00 |
| Increase in operating fee subsidies for propane production lines in the room air conditioner industry | 2,403,000.00 | |
| Sichuan Province Accounts Receivable Financing Core Enterprise Reward and Make Up | 2,369,300.00 | |
| Adaptability improvement on new coolants production | 2,364,981.72 | 2,364,981.72 |
| Demolition compensation of Changhong Meiling | 2,297,010.33 | 1,999,652.91 |
| Talent subsidies | 1,931,630.00 | 1,395,300.00 |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020(Unless otherwise specified. RMB for record in the statement)
| Item | Current Year | Last Year |
| Science and technology innovation and enterprise development fund | 1,895,786.40 | 671,307.09 |
| Subsidy for industrial development policy from Hefei for second half of 2019 | 1,788,550.00 | |
| Demolition compensation of Jiangxi Meiling | 1,779,888.60 | 1,794,257.14 |
| Subsidies for technological transformation and financial incremental contribution projects | 1,681,100.00 | |
| Large enterprises and large groups drive financing and development projects for small and medium-sized enterprises | 1,430,000.00 | |
| RESEARCH AND APPLICATION OF THE VISA (VARIABLE FREQUENCY VOLUME INTEGRATED INTELLIGENT AIR-CONDITIONER) | 1,409,302.32 | 1,409,302.33 |
| Provincial-level foreign trade fund subsidy from finance bureau in Hefei economic development zone | 1,338,474.94 | 2,857,000.00 |
| Promote high-quality manufacturing development awards in 2019 | 1,275,000.00 | |
| Subsidy for industrial development policy from Hefei for first half of 2018 | 1,250,000.00 | |
| Special funds for foreign economic & trade development and port construction for 2018 | 1,062,566.00 | 1,057,163.36 |
| Policy subsidy for promoting scientific and technological innovation | 987,900.00 | 679,700.00 |
| Subsidy received from the government to activate idle factories | 843,732.00 | 1,687,464.00 |
| Special funds for provincial-level innovation-driven development | 800,000.00 | 2,950,000.00 |
| Epidemic subsidy | 771,450.00 | |
| Freezer project of Changhong Meiling | 734,062.42 | 734,062.52 |
| Industrialization of intelligent white household appliances software platform and typical application research and development | 727,272.72 | 727,272.71 |
| State-funded project-research and development of frequency conversion control chip | 700,000.00 | |
| Corporate subsidy income | 665,061.00 | |
| Enterprise special fund | 630,000.00 | 1,500,000.00 |
| Policy funds for manufacturing a strong province, subsidy for equipment for the technological transformation of industrial strong base | 625,000.00 | 1,000,000.00 |
| Subsidies for intelligent transformation & upgrading of enterprises from the new industrialization policy in economic development zone | 605,675.00 | 605,675.00 |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020(Unless otherwise specified. RMB for record in the statement)
| Item | Current Year | Last Year |
| Tax contribution award | 584,300.00 | 600,000.00 |
| Special funds for overseas investment insurance | 576,699.00 | |
| Logistics subsidy | 550,000.00 | 1,787,400.00 |
| Receive tax refund | 523,166.43 | |
| Government subsidy for new plant construction - industrialization of cryogenic refrigeration equipment | 500,000.00 | 500,000.00 |
| IC Industry Policy Fund | 500,000.00 | |
| Subsidy for cultivation of the enterprise brand | 500,000.00 | 1,200,000.00 |
| Subsidy for international market development of small & medium-sized enterprise | 377,144.00 | 380,221.00 |
| Subsidy from Zhongshan Finance Bureau (CZ028001 provincial special project 2019) | 305,646.49 | |
| Promoting the new industry ( annual output of 0.6 million medium& large volume environmental protection and energy saving freezer) | 304,412.52 | 304,412.52 |
| 2018 Zhongshan Special fund for industrial development - Special topic of technical transformation | 265,723.80 | 296,646.81 |
| Equipment subsidy for the industrial base technical renovation from Economic and Information Commission | 235,000.00 | 179,160.00 |
| Return of service charge of individual income tax | 219,724.18 | 338,175.13 |
| Promotion of the energy-saving room air conditioner | 210,309.24 | 210,309.24 |
| Award subsidy for intellectual property | 205,000.00 | 444,400.00 |
| Industrial Development Fund | 200,000.00 | 1,440,000.00 |
| Upgrade project for the production line of Mianyang Meiling Intelligent Refrigerator | 197,499.96 | 65,833.32 |
| Subsidy for equipment purchasing for Hefei Tech. Improvement project in 2017 | 179,160.00 | 235,000.00 |
| Subsidy for purchase of R & D instruments and equipment | 167,482.30 | |
| Technical transformation subsidy | 108,581.67 | |
| Technical renovation of air conditioner production line | 95,829.50 | |
| Special fund for technical improvement | 63,193.35 | 96,727.01 |
| Special fund for technical improvement | 61,203.83 | 61,203.83 |
| Technical transformation of refrigerator evaporator workshop | 60,625.00 | 59,345.54 |
| Subsidy for the development on production line technical reform for green-friendly high-quality metal pipe | 40,892.60 | 40,892.60 |
| Subsidy for industrial development policy from Hefei for first half of 2020 | 36,216.67 | |
| Refrigerator evaporator workshop | 29,033.04 |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
| Item | Current Year | Last Year |
| Technology transformation funds | 10,000.00 | 42,885.24 |
| Robot policy-rewards for purchasing robots | 5,843.74 | |
| Special guiding fund for construction of ―Three project and One innovation‖ | 500,000.00 | |
| Special funds for steady growth of foreign trade in Zhongshan for 2017 | 1,532,797.00 | |
| Special funds for economic development of 2019 | 410,102.00 | |
| Provincial special fund for industrial transformation of the 2nd batch for 2019 | 1,000,000.00 | |
| Award subsidy for industrial linkage development | 1,239,100.00 | |
| Special fund for promoting innovation and development of processing trade | 1,000,000.00 | |
| Policy of promoting the development of new industrialization | 367,800.00 | |
| Innovation development project for the E-Business | 370,429.05 | |
| Subsidy for E-business sales | 2,000,000.00 | |
| Reward for the smart home appliance technology of the industry policy | 900,000.00 | |
| National high-Tech award | 400,000.00 | |
| Commercial circulating funds for promoting the policy of service industry from economy & development zone | 400,000.00 | |
| Premium subsidy for science & technology insurance | 600,000.00 | |
| Award for integration of information technology and industrialization | 699,539.00 | |
| Government subsidy for the project of ministry of finance of science and education entrepreneurship park in Mianyang Technology Town | 265,393.74 | |
| Venture expansion fund | 500,000.00 | |
| Subsidy for equipment renovation | 1,019,312.50 | |
| Award subsidy for provincial manufacturing industry & internet integration demonstration enterprise | 500,000.00 | |
| Supplementary fund for characteristic dual creative carriers of borrowing and transferring | 4,000,000.00 | |
| Subsidy for staff training | 819,422.65 | |
| Subsidy for home appliance standards customization project from China Household Appliances Research Institute | 574,000.00 | |
| Special fund for industrial development of Zhongshan City | 465,723.80 |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2020 to 31 December 2020(Unless otherwise specified. RMB for record in the statement)
| Item | Current Year | Last Year |
| Science and technology development special fund project of Zhongshan City | 200,000.00 | |
| Patent subsidy funds | 395,000.00 | |
| Other units | 3,534,135.95 | 3,153,426.88 |
| Total | 104,122,180.27 | 110,281,102.69 |
47. Investment income
| Item | Current Year | Last Year |
| Long-term equity investment income by equity method | -3,500,527.61 | -8,049,228.81 |
| Investment income obtained from disposal of tradable financial assets | 46,456,622.69 | -78,815,580.08 |
| Income from financial products | 7,952,740.73 | 53,507,866.92 |
| Investment income of other non-current financial assets during holding period | 27,218,378.81 | 661,434.48 |
| Total | 78,127,214.62 | -32,695,507.49 |
48. Changes in fair value gains
| Item | Current Year | Last Year |
| Tradable financial assets | 39,512,070.15 | -1,523,366.67 |
| Including :Income of fair value changes from derivative financial instruments | 39,512,070.15 | -1,523,366.67 |
| Tradable financial liability | -3,506,201.30 | 54,516,996.83 |
| Including :Income of fair value changes from derivative financial instruments | -3,506,201.30 | 54,516,996.83 |
| Other non-current financial assets | 5,608,931.34 | |
| Total | 41,614,800.19 | 52,993,630.16 |
49. Credit impairment loss
| Item | Current Year | Last Year |
| Note receivable bad debt loss | -6,578,442.30 | 15,359,134.10 |
| Account receivable bad debt loss | -14,508,281.88 | -9,496,891.77 |
| Other account receivable bad debt loss | 4,028,236.18 | -1,228,945.44 |
| Total | -17,058,488.00 | 4,633,296.89 |
50. Assets impairment loss
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2020 to 31 December 2020(Unless otherwise specified. RMB for record in the statement)
| Item | Current Year | Last Year |
| Loss on inventory valuation | -56,152,155.82 | -19,795,727.76 |
| Impairment loss on intangible assets | -22,114,421.01 | -8,815,051.75 |
| Impairment loss on fixed assets | -445,081.08 | -1,798,225.06 |
| Total | -78,711,657.91 | -30,409,004.57 |
51. Income from assets disposal
| Item | Current Year | Last Year | Amount reckoned into non-recurring gains/losses in Current Year |
| Income from non-current assets disposal | -500,976.21 | -9,537,945.52 | -500,976.21 |
| Including: income classify to assets ready for sale | |||
| income not classify as to assets ready for sale | -500,976.21 | -9,537,945.52 | -500,976.21 |
| Including: Income from fixed assets disposal | -500,976.21 | -5,493,947.51 | -500,976.21 |
| Income from intangible assets disposal | -4,043,998.01 | ||
| Total | -500,976.21 | -9,537,945.52 | -500,976.21 |
52. Non-operation revenue
(1) Non-operation revenue
| Item | Current Year | Last Year | Amount reckoned into non-recurring gains/losses in Current Year |
| Income of penalty | 561,010.41 | 863,078.25 | 561,010.41 |
| Government subsidy | 115,000.00 | ||
| Other | 7,907,595.00 | 5,501,844.73 | 7,907,595.00 |
| Total | 8,468,605.41 | 6,479,922.98 | 8,468,605.41 |
(2) Government subsidy
| Item | Current Year | Last Year | Resource and basis | Assets/income related |
| Total other government subsidy | 115,000.00 | |||
| Total | 115,000.00 |
53. Non-operating expenditure
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
| Item | Current Year | Last Year | Amount reckoned into non-recurring gains/losses in Current Year |
| Non-current asset retirement losses | 1,610,319.34 | 1,610,319.34 | |
| Public welfare donation expenditure | 413,569.21 | 413,569.21 | |
| Penalty and late fee | 556,035.82 | 295,126.45 | 556,035.82 |
| Other | 5,064,717.27 | 5,114,631.25 | 5,064,717.27 |
| Total | 7,644,641.64 | 5,409,757.70 | 7,644,641.64 |
54. Income tax expenses
(1) Income tax expenses
| Item | Current Year | Last Year |
| Current income tax | 18,657,750.29 | 8,656,853.45 |
| Deferred Income Tax | -25,413,978.61 | 17,609,171.49 |
| Total | -6,756,228.32 | 26,266,024.94 |
55. Other comprehensive income
Found more in 37. Other comprehensive income in VI
56. Items of cash flow statement
(1) Cash received (paid) from (for) other activities relating to operation/investment/financing
1) Cash received from other activities relating to operation
| Item | Current Year | Last Year |
| Government subsidy and rewards | 95,927,171.54 | 107,265,513.11 |
| Cash deposit, deposit | 37,095,731.45 | 14,723,011.12 |
| Collection of restriction fund | 7,872,582.73 | 35,368,949.87 |
| Rental income | 7,062,728.75 | 7,924,382.64 |
| Compensations | 2,594,225.87 | 3,065,739.13 |
| Petty cash collection | 669,366.91 | 95,880.00 |
| Trademark use fee | 315,726.01 | |
| Other | 7,854,834.00 | 3,962,164.63 |
| Total | 159,076,641.25 | 172,721,366.51 |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2020 to 31 December 2020(Unless otherwise specified. RMB for record in the statement)
2) Cash paid for other activities relating to operation
| Item | Current Year | Last Year |
| Market expenses | 255,164,897.06 | 285,132,543.41 |
| Rental fee | 119,053,780.02 | 173,859,467.31 |
| Travel expenses, meeting fees and exhibition fees | 36,309,468.38 | 73,029,607.07 |
| Petty cash, deposit, Cash deposit | 54,464,272.08 | 73,354,112.01 |
| Advertising fee | 7,478,184.84 | 34,667,697.12 |
| Transfer to restriction fund | 76,693,696.74 | 14,496,135.53 |
| Vehicle expenses | 22,580,186.94 | 18,419,063.04 |
| Business activities fee | 14,449,890.29 | 29,264,931.29 |
| Inspection and certification fee, certification charge and reviewing fee | 35,181,026.65 | 27,067,600.74 |
| Technological cooperation costs and consulting charge | 21,277,315.33 | 10,935,357.90 |
| Board fee | 1,831,261.76 | 9,409,783.66 |
| Service supporting fee | 70,451,962.30 | 84,858,392.13 |
| Service Charge | 11,957,196.81 | 15,939,966.84 |
| Office expenses | 8,118,120.21 | 8,414,528.45 |
| Communication fee | 2,211,811.13 | 4,356,964.71 |
| Labor service fee | 6,369,121.47 | 10,746,378.64 |
| Repair charge | 13,097,229.57 | 12,704,160.68 |
| Other | 101,246,863.15 | 100,553,596.73 |
| Total | 857,936,284.73 | 987,210,287.26 |
3) Cash received from other activities relating to investment
| Item | Current Year | Last Year |
| Interest income arising from bank savings | 139,527,348.90 | 126,072,829.83 |
| Foreign exchange investment income | 47,402,894.53 | |
| Cash deposit | 1,317,038.52 | 688,706.45 |
| Total | 188,247,281.95 | 126,761,536.28 |
4) Cash paid for other activities relating to investment
| Item | Current Year | Last Year |
| Loses of forward exchange settlement | 946,271.84 | 78,815,580.08 |
| Bid bond refund | 40,000.00 | |
| Total | 986,271.84 | 78,815,580.08 |
5) Cash received from other activities relating to financing
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2020 to 31 December 2020(Unless otherwise specified. RMB for record in the statement)
| Item | Current Year | Last Year |
| Recover loan cash deposit | 23,232,000.00 | |
| Meiling series (internal) bill discounting fundraising | 4,919,427.20 | |
| Total | 28,151,427.20 |
6) Cash paid for other activities relating to financing
| Item | Current Year | Last Year |
| Payment for B share repurchase | 9,934,941.56 | |
| Financing lease | 2,570,997.36 | 1,900,677.91 |
| Handling charge of dividend | 36,893.14 | 44,313.96 |
| Loan deposit | 23,232,000.00 | |
| Repayment of investment | 7,000,000.00 | |
| Intermediary service fee from financing | 308,736.00 | |
| Total | 12,542,832.06 | 32,485,727.87 |
(2) Supplementary of the consolidated cash flow statement
| Item | 2020 | 2019 |
| 1. Net profit is adjusted to cash flow of operation activities: | ||
| Net profit | -79,122,112.48 | 43,512,200.81 |
| Add: provision for depreciation of assets | 17,652,497.13 | 25,775,707.68 |
| Credit impairment loss | 13,330,145.31 | |
| Depreciation of fixed assets, consumption of oil gas assets and depreciation of productive biological assets | 224,389,307.35 | 194,179,175.14 |
| Amortization of intangible assets | 138,997,172.49 | 116,308,174.70 |
| Amortization of long-term retained expense | 500,976.21 | 9,537,945.52 |
| Loss from disposal of fixed assets, intangible assets and other long term assets(gain is listed with ―-‖) | 1,610,319.34 | |
| Loss from discarding fixed assets as useless (gain is listed with ―-‖) | -41,614,800.19 | -52,993,630.16 |
| Loss from change of fair value(gain is listed with ―-‖) | -18,314,184.54 | -22,926,471.28 |
| Financial expense (gain is listed with ―-‖) | -78,127,214.62 | 32,695,507.49 |
| Investment loss (gain is listed with ―-‖) | -29,732,801.80 | 14,750,478.61 |
| Decrease of deferred income tax assets (increase is listed with ―-‖) | 4,318,823.19 | 3,158,060.03 |
| Increase of deferred income tax liabilities (decrease is listed with ―-‖) | -249,696,219.79 | 739,888,328.32 |
| Decrease of inventories (increase is listed with ―-‖) | 196,371,339.03 | 253,957,057.05 |
| Decrease of operational accounts receivable (increase is listed with ―-‖) | 1,247,489,556.08 | -92,558,557.19 |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2020 to 31 December 2020(Unless otherwise specified. RMB for record in the statement)
| Item | 2020 | 2019 |
| Other | 55,463,419.75 | 19,720,008.32 |
| Net cash flow arising from operation activities | 1,403,516,222.46 | 1,285,003,985.04 |
| 2. Major investment and financing activities that do not involve cash receipts: | ||
| Conversion of debt into capital | ||
| Switching Company bonds due within one year | ||
| financing lease of fixed assets | ||
| 3. Net change in cash and cash equivalents: | ||
| Balance at year-end of cash | 6,425,529,815.10 | 5,385,807,475.51 |
| Less: Balance at year-begin of cash | 5,385,807,475.51 | 4,484,643,187.93 |
| Add: Balance at year-end of cash equivalents | ||
| Less: Balance at year-begin of cash equivalents | ||
| Net increase in cash and cash equivalents | 1,039,722,339.59 | 901,164,287.58 |
(3) No net cash paid for subsidiary obtained in Current Year
(4) No net cash received from subsidiary disposal in Current Year
(5) Cash and cash equivalent
| Item | Current Year | Last Year |
| Cash | 6,425,529,815.10 | 5,385,807,475.51 |
| Including: cash in stock | 35,088.07 | 44,818.07 |
| Bank deposits available for payment at any time. | 6,049,544,898.32 | 4,771,094,609.77 |
| Other monetary fund available for payment at any time | 375,949,828.71 | 614,668,047.67 |
| Cash equivalents | ||
| Including: bond investment due within 3 months | ||
| Balance of cash and cash equivalents at year-end | 6,425,529,815.10 | 5,385,807,475.51 |
| Including: using the restricted cash and cash equivalents of the parent company or subsidiary of the group |
57. Assets with ownership or the right to use restricted
| Item | Book value at year-end | Reasons |
| Monetary fund | 159,382,669.14 | Cash deposit, Frozen funds |
| Receivables financing note 1 | 548,295,149.14 | Pledged |
| Investment real estate note 2 | 3,639,780.95 | Pledged |
| Fixed assets note 2 | 363,788,878.69 | Pledged |
| Intangible assets note 2 | 289,567,335.79 | Pledged |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020(Unless otherwise specified. RMB for record in the statement)
| Item | Book value at year-end | Reasons |
| Total | 1,364,673,813.71 |
Note 1: The note receivable listed in receivables financing was pledged for: short-term financing from the bank; withpurpose of improving the note utilization, the Company draw up bank acceptance by pledge parts of the outstandingnotes receivable to the bankNote 2: The mortgage of investment real estate, fixed assets, and intangible assets is the mortgage of houses andbuildings and land use rights. For details, please refer to Note VI. 29. Long-term loans.
58. Foreign currency
(1) Foreign currency
| Item | Ending foreign currency balance | Exchange rate | Ending RMB converted balance |
| Monetary fund | 202,737,892.02 | ||
| Including: USD | 10,051,207.36 | 6.5249 | 65,583,122.90 |
| Euro | 9,761,377.61 | 8.0250 | 78,335,055.32 |
| AUD | 2,697,258.22 | 5.0163 | 13,530,256.41 |
| Pakistan Rupi | 33,393,777.12 | 0.04065 | 1,357,457.04 |
| IDR | 10,488,306,782.95 | 0.0004644 | 4,870,769.67 |
| HKD | 40,394,423.62 | 0.8416 | 33,995,946.92 |
| PHP | 37,217,367.82 | 0.1361 | 5,065,283.76 |
| Account receivable | 825,659,818.12 | ||
| Including: USD | 96,022,567.81 | 6.5249 | 626,537,652.70 |
| Euro | 6,426,785.54 | 8.0250 | 51,574,953.96 |
| AUD | 16,489,237.00 | 5.0163 | 82,714,959.56 |
| Pakistan Rupi | 1,206,060,581.30 | 0.04065 | 49,026,362.63 |
| IDR | 34,035,075,939.19 | 0.0004644 | 15,805,889.27 |
| Other account receivable | 6,884,721.82 | ||
| Including: USD | 879,700.13 | 6.5249 | 5,739,955.38 |
| Pakistan Rupi | 15,974,268.39 | 0.04065 | 649,354.01 |
| IDR | 1,057,987,575.37 | 0.0004644 | 491,329.43 |
| PHP | 30,000.00 | 0.1361 | 4,083.00 |
| Account payable | 24,452,910.55 |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020(Unless otherwise specified. RMB for record in the statement)
| Item | Ending foreign currency balance | Exchange rate | Ending RMB converted balance |
| Including: USD | 2,904.75 | 6.5249 | 18,953.20 |
| Euro | 13,419.32 | 8.0250 | 107,690.04 |
| Pakistan Rupi | 219,900,318.57 | 0.04065 | 8,938,947.95 |
| IDR | 33,133,762,618.43 | 0.0004644 | 15,387,319.36 |
| Other account payable | 35,041,126.61 | ||
| Including: USD | 10,007.76 | 6.5249 | 65,299.63 |
| AUD | 1,528,235.60 | 5.0163 | 7,666,088.24 |
| Euro | 1,381,720.30 | 8.0250 | 11,088,305.41 |
| HKD | 38,744.82 | 0.8416 | 32,607.64 |
| Pakistan Rupi | 310,650,224.85 | 0.04065 | 12,627,931.64 |
| IDR | 7,336,718,148.98 | 0.0004644 | 3,407,171.91 |
| PHP | 1,129,479.34 | 0.1361 | 153,722.14 |
| Short-term loans | 92,497,500.00 | ||
| Including: Euro | 9,500,000.00 | 8.0250 | 76,237,500.00 |
| Pakistan Rupi | 400,000,000.00 | 0.04065 | 16,260,000.00 |
(2) Foreign operational entity
The foreign operational entity of the Company was Changhong Ruba Trading Company (Private)Limited, mainly operates in Lahore, Pakistan;Recording currency is Pakistan Rupi. CHANGHONG MEILING ELECTRIC INDONESIA, PT,mainly operates in Jakarta; recording currency is IDR. CH-Meiling International (Philippines) Inc,mainly operates in Philippines; Recording currency is PHP.
59. Government subsidy
| Item | Amount | Item | Amount reckoned into current gain/loss |
| Industrial development policy subsidy | 28,058,461.33 | Other income | 28,058,461.33 |
| Subsidy for export credit insurance | 7,516,778.79 | Other income | 7,516,778.79 |
| Subsidy for industrial development policy from Hefei for second half of 2019 | 7,154,200.00 | Deferred income | 1,788,550.00 |
| Subsidy for employment stable | 5,520,715.46 | Other income | 5,520,715.46 |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2020 to 31 December 2020(Unless otherwise specified. RMB for record in the statement)
| Item | Amount | Item | Amount reckoned into current gain/loss |
| Tax refund | 5,381,762.75 | Other income | 5,381,762.75 |
| Centre for external cooperation of the environmental protection | 5,076,600.00 | Deferred income | |
| Some policy subsidies to support the development of digital economy in Anhui | 3,500,000.00 | Other income | 3,500,000.00 |
| Subsidy for industrial development policy from Hefei for first half of 2020 | 3,476,800.00 | Deferred income | 36,216.67 |
| Enterprise policy funds from Economic and Trade Development Bureau in Hefei economic development zone | 3,074,766.67 | Other income | 3,074,766.67 |
| Special subsidy for Nanjing Port | 2,571,170.00 | Other income | 2,571,170.00 |
| Increase in operating fee subsidies for propane production lines in the room air conditioner industry | 2,403,000.00 | Other income | 2,403,000.00 |
| Sichuan Province Accounts Receivable Financing Core Enterprise Reward and Make Up | 2,369,300.00 | Other income | 2,369,300.00 |
| Talent subsidies | 1,931,630.00 | Other income | 1,931,630.00 |
| Science and technology innovation and enterprise development fund | 1,895,786.40 | Other income | 1,895,786.40 |
| Subsidies for technological transformation and financial incremental contribution projects | 1,681,100.00 | Other income | 1,681,100.00 |
| Large enterprises and large groups drive financing and development projects for small and medium-sized enterprises | 1,430,000.00 | Other income | 1,430,000.00 |
| Provincial-level foreign trade fund subsidy from finance bureau in Hefei economic development zone | 1,338,474.94 | Other income | 1,338,474.94 |
| Promote high-quality manufacturing development awards in 2019 | 1,275,000.00 | Other income | 1,275,000.00 |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2020 to 31 December 2020(Unless otherwise specified. RMB for record in the statement)
| Item | Amount | Item | Amount reckoned into current gain/loss |
| Special funds for foreign economic & trade development and port construction for 2018 | 1,062,566.00 | Other income | 1,062,566.00 |
| Policy subsidy for promoting scientific and technological innovation | 987,900.00 | Other income | 987,900.00 |
| Subsidy received from the government to activate idle factories | 843,732.00 | Other income | 843,732.00 |
| Special funds for provincial-level innovation-driven development | 800,000.00 | Other income | 800,000.00 |
| Epidemic subsidy | 771,450.00 | Other income | 771,450.00 |
| State-funded project-research and development of frequency conversion control chip | 700,000.00 | Other income | 700,000.00 |
| Corporate subsidy income | 665,061.00 | Other income | 665,061.00 |
| Enterprise special fund | 630,000.00 | Other income | 630,000.00 |
| Emerging Industry Base Fund Support Project | 620,000.00 | Deferred income | |
| Tax contribution award | 584,300.00 | Other income | 584,300.00 |
| Special funds for overseas investment insurance | 576,699.00 | Other income | 576,699.00 |
| Robot policy-rewards for purchasing robots | 561,000.00 | Deferred income | 5,843.74 |
| Logistics subsidy | 550,000.00 | Other income | 550,000.00 |
| IC Industry Policy Fund | 500,000.00 | Other income | 500,000.00 |
| Subsidy for cultivation of the enterprise brand | 500,000.00 | Other income | 500,000.00 |
| Subsidy for international market development of small & medium-sized enterprise | 377,144.00 | Other income | 377,144.00 |
| Special fund for technical improvement | 375,700.00 | Deferred income | 63,193.35 |
| Technical transformation subsidy | 317,800.00 | Deferred income | 108,581.67 |
| Subsidy for purchase of R & D instruments and equipment | 280,900.00 | Deferred income | 167,482.30 |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2020 to 31 December 2020(Unless otherwise specified. RMB for record in the statement)
| Item | Amount | Item | Amount reckoned into current gain/loss |
| Award subsidy for intellectual property | 205,000.00 | Other income | 205,000.00 |
| Industrial Development Fund | 200,000.00 | Other income | 200,000.00 |
| Technology transformation fund | 10,000.00 | Other income | 10,000.00 |
| Other units | 3,534,135.95 | Other income | 3,534,135.95 |
| Total | 101,308,934.29 | 85,615,802.02 |
VII. Changes of consolidation rage
1. Enterprise combined under the different control: nil
2. Enterprise combined under the same control: nil
3. Reversed takeover: nil
4. Disposal of subsidiary: nil
5. Subsidiary liquidated
| Subsidiary | Price of the equity disposed | Ratio of the equity disposed | Way of the equity disposed | Time point of control right lose | Determination basis for the time point of control right lose | Difference between the disposal price and proportion of the subsidiary’s net assets enjoy in aspect of the consolidated financial statement, which is respond to the disposal investment | Other comprehensive income transferred into investment income , which related with the equity investment of original subsidiary |
| Guangxi Huidian Household Electrical Appliances Co., Ltd. | 100.00% | Liquidation cancellation | 2020.03 | Liquidation completed | |||
| Changmei Technology Co., Ltd. | 96.256% | Liquidation cancellation | 2020.12 | Liquidation completed |
6. Subsidiary newly established:
| Name of company | New merger | Shareholding | Net asset at | Net profit in |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2020 to 31 December 2020(Unless otherwise specified. RMB for record in the statement)
| reasons | ratio | year-end | Current Year | |
| CH-Meiling International (Philippines) Inc. | Newly established | 100.00% | 5,475,315.83 | -1,169,089.69 |
| Hefei Changhong Meiling Life Electric Co., Ltd. | Newly established | 70.00% |
7. Subsidiary merger by absorption
| Name of company | Equity ratio before absorption | Time for absorption |
| Chengdu Meiling Electric Appliances Marketing Co., Ltd | 100.00% | 2020.11 |
| Fuzhou Meiling Electric Appliances Marketing Co., Ltd | 100.00% | 2020.11 |
| Nanjing Meiling Electric Appliances Marketing Co., Ltd | 100.00% | 2020.11 |
| Hanzhou Meiling Electric Appliances Marketing Co., Ltd | 100.00% | 2020.11 |
| Shanghai Meiling Electric Appliances Marketing Co., Ltd | 100.00% | 2020.11 |
| Beijing Meiling Electric Appliances Marketing Co., Ltd | 100.00% | 2020.11 |
In November 2020, Hefei Meiling Group Holding Co., Ltd. Purchased 100% equity of ChengduMeiling Electric Appliances Marketing Co., Ltd. (hereinafter referred to as "Chengdu Meiling"),Fuzhou Meiling Electric Appliances Marketing Co., Ltd. (hereinafter referred to as "FuzhouMeiling"), Nanjing Meiling Electric Appliances Marketing Co., Ltd. (hereinafter referred to as"Nanjing Meiling"), Hangzhou Meiling Electric Appliances Marketing Co., Ltd. (hereinafter referredto as "Hangzhou Meiling"), Shanghai Meiling Electric Appliances Marketing Co., Ltd. (hereinafterreferred to as "Shanghai Meiling"), Beijing Meiling Electric Appliances Marketing Co., Ltd. Thecompany (hereinafter referred to as "Beijing Meiling") from Hefei Meiling Electric AppliancesMarketing Co., Ltd., and merged the six companies by absorption. As of December 31, 2020, the sixacquired companies have not yet completed the industrial and commercial cancellation.VIII. Equity in other entity
1. Equity in subsidiary
(1) Composition of the enterprise group
| Subsidiary | Main office place | Registration place | Business nature | Shareholding ratio（%) | Acquire by | |
| Directly | Indirectly | |||||
| Zhongke Meiling Cryogenic Technology Co., Ltd.1) | Hefei | Hefei | Manufacturing and sales | 63.2683 | Investment | |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020(Unless otherwise specified. RMB for record in the statement)
| Subsidiary | Main office place | Registration place | Business nature | Shareholding ratio（%) | Acquire by | |
| Directly | Indirectly | |||||
| Sichuan Hongmei Intelligent Technology Co., Ltd.2) | Mianyang | Mianyang | Software development | 100 | Investment | |
| Mianyang Meiling Refrigeration Co., Ltd.3) | Mianyang | Mianyang | Manufacturing and sales | 95 | 5 | Investment |
| Jiangxi Meiling Electric Appliance Co., Ltd.4) | Jingdezhen | Jingdezhen | Manufacturing and sales | 98.75 | 1.25 | Investment |
| Hefei Meiling Wulian Technology Co., Ltd.5) | Hefei | Hefei | Software development | 100 | Investment | |
| Hefei Meiling Electric Appliances Marketing Co., Ltd 6) | Hefei | Hefei | Sales | 99.82 | 0.18 | Investment |
| Jinan Xiangyou Electric Appliances Marketing Co., Ltd 7) | Jinan | Jinan | Sales | 93.4 | Investment | |
| Wuhan Meizirong Electrical Marketing Co., Ltd 8) | Wuhan | Wuhan | Sales | 92 | Investment | |
| Zhengzhou Meiling Electric Appliances Marketing Co., Ltd 9) | Zhengzhou | Zhengzhou | Sales | 100 | Investment | |
| Taiyuan Meiling Electric Appliances Marketing Co., Ltd. 10) | Taiyuan | Taiyuan | Sales | 100 | Investment | |
| Guangzhou Meiling Electric Appliances Marketing Co., Ltd. 11) | Guangzhou | Guangzhou | Sales | 98 | Investment | |
| Tianjin Meiling Electric Appliances Marketing Co., Ltd. 12) | Tianjin | Tianjin | Sales | 100 | Investment | |
| Hefei Meiling Nonferrous Metal Products Co., Ltd.13) | Hefei | Hefei | Manufacturing and sales | 100 | Enterprise combined under the different control | |
| Changhong Meiling Ridian Technology Co., Ltd.14) | Zhongshan | Zhongshan | Manufacturing and sales | 99.0361 | Enterprise combined under the same control | |
| CHANGHONGMEILINGELECTRICINDONESIA,PT 15) | Jakapta | Jakapta | Sales | 100 | Investment | |
| ChanghongRubaTradingCompany（Private) Limited 16) | Pakistan | Pakistan | Sales | 60 | Investment | |
| Sichuan Changhong Air Conditioning Co., Ltd.17) | Mianyang | Mianyang | Manufacturing and sales | 100 | Enterprise combined under the same control | |
| Zhongshan Changhong Electric Co., Ltd.18) | Zhongshan | Zhongshan | Manufacturing and sales | 90 | 10 | Enterprise combined under the same control |
| Hefei Meiling Group Holdings Limited19) | Hefei | Hefei | Manufacturing and sales | 100 | Enterprise combined under the different | |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
| Subsidiary | Main office place | Registration place | Business nature | Shareholding ratio（%) | Acquire by | |
| Directly | Indirectly | |||||
| control | ||||||
| Meiling Equator Household Appliance (Hefei) Co., Ltd. 20) | Hefei | Hefei | Manufacturing and sales | 100 | Enterprise combined under the different control | |
| Hefei Equator Appliance Co., Ltd. 21) | Hefei | Hefei | Manufacturing and sales | 100 | Enterprise combined under the different control | |
| Hongyuan Ground Energy Heat Pump Tech. Co., Ltd22) | Mianyang | Mianyang | Manufacturing and sales | 51 | Investment | |
| Ground Energy Heat Pump Tech. (Zhongshan) Co., Ltd. 23) | Zhongshan | Zhongshan | Manufacturing and sales | 51 | Investment | |
| Meiling CANDY Washing Machine Co., Ltd. 24) | Hefei | Hefei | Manufacturing and sales | 60 | Investment | |
| Guangzhou Changhong Trading Co., Ltd.25) | Guangzhou | Guangzhou | Sales | 100 | Investment | |
| Hebei Hongmao Household Appliance Technology Co., Ltd26) | Handan | Handan | Manufacturing and sales | 99.0361 | Investment | |
| Anhui Tuoxing Technology Co., Ltd.27) | Hefei | Hefei | R&D of technology | 63.2683 | Investment | |
| CH-Meiling.International (Philippines) Inc.28) | Philippines | Philippines | Sales | 100 | Investment | |
| Hefei Changhong Meiling Life Electric Co., Ltd. 29) | Hefei | Hefei | Sales | 70 | Investment | |
Note:
1) Zhongke Meiling Cryogenic Technology Co., Ltd. (hereinafter referred to as Zhongke Meiling),
the predecessor of which was Zhongke Meiling Cryogenic Technology Limited Liability Company,was established on 29 October 2002 by joint contribution from the Company and Technical Institute ofPhysics and Chemistry, CAS (―TIPC‖), with registered capital of RMB60 million upon theestablishment, among which, the Company made capital contribution of RMB42 million (includingthe assets in specie at the consideration of RMB35,573,719.70 as evaluated by Beijing ZhongzhengAppraisal Co., Ltd. with issuance of the Appraisal Report (ZZPBZ(2002)No.029) and cashcontribution of RMB6,426,280.30) accounting for 70% of the aforesaid registered capital, and TIPCmade capital contribution of RMB18 million with intangible assets of such value (namely the singlecompressor mixture industrial low temperature refrigeration technology) as evaluated by JingzhongziAssets Appraisal Co., Ltd. with issuance of the Appraisal Report (ZZPBZ(2002)No.225) accountingfor 30% of the aforesaid registered capital. The paid-in of the above registered capital has beenverified by Huazheng Accounting Firm by issuance of the Assets Verification Report (HZYZ (2002)
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020(Unless otherwise specified. RMB for record in the statement)
No. B157) dated 16 October 2002.In October 2014, according to the relevant provision under the Management Rules on Application ofState Owned Assets by Central Business Organs, TIPC transferred the 30% equity interests held by itin Zhongke Meiling Cryogenic Technology Company Limited to its wholly-owned subsidiaryZhongke Xianxing (Beijing) Assets Management Co., Ltd (hereinafter referred to as ZhongkeXianxing) which would perform management over the operating assets of TIPC. Upon considerationand approval at the 37
th session of the 7
thBoard of Directors of Hefei Meiling Co., Ltd, it is agreed towaive the pre-emptive right.On 10 August 2015, all the founders signed the Founder Agreement of Zhongke Meiling CryogenicTechnology Company Limited, pursuant to which, they decided to change the firm type of ZhongkeMeiling Cryogenic Technology Company Limited to a joint stock company. Based on the net assets ofRMB96, 431,978.25 as audited by Xinyong Zhonghe CPA as of 30 June 2015, an aggregate of65,000,000 shares have been converted at the proportion of 1:0.67, which are to be held by theoriginal shareholders according to their respective entitlement. In case that the net assets exceedregistered capital, the balance shall be recorded in capital reserve. On 28 August 2015, XinyongZhonghe CPA reviewed the registered capital and paid-in thereof in respect of the stock reform, andissued Assets Verification Report (XYZH/2015CDA40161). The Company registered industrial andcommercial information on 11 September 2015.On November 25, 2016, the first Extraordinary Shareholders' General Meeting of Zhongke MeilingCryogenic Technology Co., Ltd. in 2016 considered and approved the Proposal on the Issuance Planof the Company; Zhongke Meiling Company issued 3,150,000 shares to specific investors by thenon-public offering of shares at 1.63 Yuan per share. The current capital increase was verified by theNo.［XYZH/2016CDA40294］capital verification report issued by ShineWing CPA (special generalpartnership). After the completion of the issuance, the share capital of Zhongke Meiling Companyincreased 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 CryogenicTechnology Co., Ltd for year of 2017 was deliberated and approved by 4
thsession extraordinary ofshareholders general meeting of 2017. Zhongke Meiling offering 490,300 shares to specific investorsby way of privately placement, which has 1.72 Yuan per share in amount. The capital increasementhas been verified by the No. ［XYZH/2017CDA40324］capital verification report issued byShineWing CPA (special general partnership). After the completion of shares placement, stock of theCompany increased to 68,640,300 shares and 66.87% held by the Company.
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2020 to 31 December 2020(Unless otherwise specified. RMB for record in the statement)
On September 9, 2019, the 10
thMeeting of the Second Board of Directors and the FourthExtraordinary Shareholders‘ Meeting reviewed and approved the Proposal on the First Stock IssuancePlan of Zhongke Meiling Cryogenic Technology Co., Ltd. in 2019 (Revised Version), the number ofshares to be issued this time does not exceed 3,907,900 shares (including 3,907,900 shares), the issueprice is not less than 2.16 yuan per share, and the raised funds are expected to not exceed 8,441,064.00yuan (including 8,441,064.00 yuan). After the completion of the additional issue, the company‘s sharecapital increased to 72,548,200 shares, which was verified by [No. XYZH/2020CDA30002] ―CapitalVerification Report‖ issued by Shine Wing Certified Public Accountants (LLP), and the Company‘sshareholding ratio was 63.2683%.
2) Sichuan Hongmei Intelligent Technology Co., Ltd. (hereinafter referred to as Hongmei Intelligent)was established on Jan. 24, 2014. It is a limited company jointly invested by the Company andMianyang Meiling Refrigeration Co., Ltd., being approved by the Industrial and Commerce Bureau ofPeicheng District, Mianyang City. The company owes registered capital of RMB 5 million, includingRMB 4.95 million contributed by Changhong Meiling Company in cash, accounted for 99% of theregistered capital; Mianyang Meiling Refrigeration Co., Ltd. contributed RMB 50000 in cash with 1%of the register capital occupied. The above mentioned register capital have been verified byverification report of Chuanjinlai Yanzi No. [2014] B039 issued by Sichuan Jinlai Accounting FirmCo., Ltd. In July 2016, the shares of Hongmei Intelligent, held by the Company has transferred toSichuan Changhong AC Co., Ltd., after transferred, Changhong AC has 99% equity of HongmeiIntelligent, the Company has no shares of Hongmei Intelligent directly.
3) Mianyang Meiling Refrigeration Co., Ltd. (hereinafter referred to as Mianyang Meiling), a limitedliability company jointly set up by the Company and China-tech Meiling Company, was founded onMar. 6, 2009. Its registered capital and paid-in capital were RMB 50 million upon establishment, ofwhich, the Company invested RMB 45 million, accounting for 90% of the registered capital; ZhongkeMeiling Company invested RMB 5 million, accounting for 10% of the registered capital. The capitalreceipt was verified by the verification report [CXKY (2009) No. 008] of Sichuan Xingrui CertifiedPublic Accountants. On 19 January 2011, the Company increase RMB 50 million in capital ofMianyang Meiling, of which RMB 95 million invested by the Company, a 95% of total register capitalwhile RMB 5 million invested by Zhongke Meiling, a 5% of total capital occupied. The paid-in capitalhas been verified by Capital Verification Report［XYZH/2010CDA6040］from Chengdu Branch ofShinewing CPA CO., Ltd. In 2011, Zhongke Meiling entered into ―Equity Transfer Agreement‖ withJiangxi Meiling Refrigeration Co., Ltd. 5 percent equity of Mianyang Meiling held by ZhongkeMeiling was transferred to Jiangxi Meiling Refrigerator. In September 2013, Jiangxi MeilingRefrigeration was combined by Jiangxi Meiling Electric Appliance Co., Ld, than 5 percent equity was
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
transfer to Jiangxi Meiling Electric Appliance.
4) Jiangxi Meiling Electric Appliance Co., Ltd. (hereinafter referred to as Jiangxi Meiling ElectricAppliance) was a limited liability company jointly established by the Company and Mianyang Meilingon 23 May 2011. Register capital of the company totally as RMB 50 million, RMB 49.375 millioninvested by the Company, 98.75% in total register capital while RMB 0.625 million invested byMianyang Meiling , a 1.25% in total register capital occupied. The initial investment RMB 10.50million was received dated 13 May 2011 with RMB 10 million from the Company and RMB 0.5million from Mianyang Meiling. Rest of the capital shall be invested fully within 2 years after the jointventures established according to capital requirement. The initial investment capital were verified bythe Capital Verification Report [JXKYZi (2011) No. 090] issued from Jingdezhen Xingci CPA Co.,Ltd. Second capital RMB 39.5 million was fully funded on 28 July 2011, the Company contributedRMB 39.375 million while Mianyang Meiling Company invested RMB 125,000, the contributionshave been verified by the capital verification report [Jing Xing Kuai Yan Zi (2011) No.: 134] issuedfrom JDZ Xingci CPA Co., Ltd.
5) Hefei Meiling Wulian Technology Co., Ltd. (hereinafter referred to as Wulian Technology) wasestablished dated 21 January 2019 with registered capital of RMB 10 million, and it is the subsidiary ofthe Company with fully-owned establishment. As of December 31, 2020, paid in capital is 6 millionyuan
6) Hefei Meiling Electric Appliances Marketing Co., Ltd (hereinafter referred to as MeilingMarketing) is the limited company jointly invested by the Company and Mianyang Meiling Companyon 21 Oct. 2009. Registered capital and paid-up capital were RMB 10 million, including RMB 9.9million invested by the Company, a 99% of the registered capital; Mianyang Meiling Companycontributed RMB 0.1 million, a 1% of the registered capital. The above mentioned paid-up registercapital have been verified by verification report of [Wan An Lian Xin Da Yan Zi (2009) No. 074]issued by Anhui An Lian Xin Da Accounting Firm Co., Ltd. On 25 Nov. 2010, the Company increasedcapital RMB 45 million, registered capital amounting to RMB 55 million, including RMB 54.9million contributed by the Company, a 99.82% of the registered capital, while Mianyang Meilinginvested RMB 0.1 million, a 0.18% of the registered capital. The increased capital has been verifiedby verification report of [Wan Hua Shen Zheng Da Kuai Yan Zi (2010) No. 1514] issued by AnhuiHua Shen Zhengda CPA Co., Ltd.
7) Jinan Xiangyou Electric Appliances Marketing Co., Ltd (hereinafter referred to as JinanXiangyou) was established dated 3 June 2011 with registered capital of RMB 3 million; Meiling
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
Marketing invested RMB 1.08 million, accounted for 36% of the registered capital; after MeilingMarketing acquired 55.4% equity interests from the minority shareholders in 2015, Meiling Marketingtotally holds 91.4% equity of the Jinan Xiangyou, In 2019, minority shareholders step out, shares ofJinan Meiling hold by Meiling Marketing changed to 93.4%.
8) Wuhan Meizirong Electrical Marketing Co., Ltd (hereinafter referred to as Wuhan Meizirong) wasestablished dated 10 January 2011 with registered capital of RMB 5 million; Meiling Marketing investedRMB 4.60 million, accounted for 92% of the registered capital.
9) Zhengzhou Meiling Electric Appliances Marketing Co., Ltd (hereinafter referred to asZhengzhou Meiling) was established dated 17 January 2011 with registered capital of RMB 3 million;Meiling Marketing invested RMB 1.08 million, accounted for 36% of the registered capital. In 2013,Meiling Marketing purchased 10% equity from minority; Meiling Marketing signed equity transferagreement with the minority shareholders in April 2015, to acquire as the transferee the 39% equityinterests of Zhengzhou Meiling held by minority shareholders, Meiling Marketing acquired 10%equity interests from the minority shareholders in February 2016; and after acquiring 5% equity fromminority in 2017, Meiling Marketing totally holds 100% equity of Zhengzhou Meiling.
9) Taiyuan Meiling Electric Appliances Marketing Co., Ltd. (hereinafter referred to as TaiyuanMeiling) was established dated 18 January 2011 with registered capital of RMB 4 million; MeilingMarketing invested RMB 1.59 million, accounted for 39.75% of the registered capital; after MeilingMarketing purchased 45.5% equity from minority in 2013, after purchased 14.75% equity fromminority in 2016, Meiling Marketing totally holds 100% equity of the Taiyuan Meiling.
11) Guangzhou Meiling Electric Appliances Marketing Co., Ltd. (hereinafter referred to asGuangzhou Meiling) was established dated 13 May 2011 with registered capital of 5 million Yuan;Meiling Marketing invested 4.3 million Yuan, accounted for 86% of the registered capital; afterMeiling Marketing acquired 12% equity interests from the minority shareholders in 2014, MeilingMarketing totally held the 98% equity interests of Guangzhou Meiling.
12) Tianjin Meiling Electric Appliances Marketing Co., Ltd. (hereinafter referred to as TianjinMeiling) was established dated 2 March 2011 with registered capital of 3 million Yuan; MeilingMarketing invested 2.565 million Yuan, accounted for 85.5% of the registered capital; In 2015,Meiling Marketing and Jiangxi Meiling Appliances entered into equity transfer agreements withminority shareholders respectively, to acquire as the transfers the 14.1% and 0.4% equity interests ofTianjin Meiling held by minority shareholders. Upon completion of equity transfer in December 2015,Meiling Marketing totally held the entire equity interests of Tianjin Meiling.
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2020 to 31 December 2020(Unless otherwise specified. RMB for record in the statement)
13) Hefei Meiling Nonferrous Metal Products Co., Ltd. (hereinafter referred to as Nonferrous Metal)was the Sino-foreign joint venture jointly set up by original Meiling Group, Hefei Meiling Copper Co., Ltd. AndSingapore 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 capitalwas US$ 2.92 million upon establishment, of which, original Meiling Group invested US$ 1.46million (monetary capital), accounting 50% of the registered capital, Hefei Meiling Copper Co., Ltdinvested 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$ 0.876million (monetary capital), accounting 30% of the registered capital. The above mentioned investmentverified 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] fromForeign Trade Economic Cooperation Bureau of Hefei City, 30% equity and 20% equity held bySingapore Kim Shin Development Co., Ltd and Hefei Meiling Copper Co., Ltd respectively transferred tooriginal Meiling Group Totally. The Company‘s register capital came into RMB 24,286,808.00 aftertransference, and was not the joint-venture any more.
14) Changhong Meiling Ridian Technology Co., Ltd. (hereinafter referred to as Ridian Technology) isa 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 registeredcapital and paid-in capital are RMB 40 million Yuan, of which Sichuan Changhong has invested 32million Yuan by monetary capital, accounting for 80% of the registered capital; Changhong MotorTransport Company has invested 8 million Yuan, accounting for 20% of the registered capital. Theofficial 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 onJanuary 4, 2007, changing from 40 million Yuan to 83 million Yuan , for the newly increased 43million 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 theinvestment of 8 million Yuan of Changhong Motor Transport Company to Sichuan ChanghongVenture Investment Co., Ltd, the structure of the registered capital after changes was that SichuanChanghong 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 personshareholders invested 1.2 million Yuan , accounting for 1.45%. The change of registered capital wasverified by Zhongshan Promise Accounting Firm [No. ZCHZ (2007)501010].
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2020 to 31 December 2020(Unless otherwise specified. RMB for record in the statement)
On February 18, 2009, seven natural person shareholders transferred total 0.76% stock rights to HuZhiheng, after the transfer, the registered capital of Changhong Ridian was still 83 million Yuan , thestructure 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 millionYuan , accounting for 1.45%.On October 9, 2014, Changhong Ridian held the shareholders meeting which considered and agreedKou Huameng to transfer its stock rights of total 250,000 Yuan which accounts for 0.301% of theRidian Technology‘s registered capital to Sichuan Changhong Venture Investment Co., Ltd at the costof 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 andagreed Guangdong Xiongfeng Electric Co., Ltd. to transfer its stock rights of total 40 million Yuanwhich 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 theright of pre-emption. The structure of registered capital after changes was that Sichuan Changhonginvested 73.8 million Yuan, accounting for 88.92%; Sichuan Changhong Venture Investment Co., LtdInvested 8.25 million Yuan, accounting for 9.94%; Hu Zhiheng and another natural person shareholderinvested 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, theCompany directly holds 98.855% stock rights of Ridian Technology.On 7 April 2020, Ridian Technology convened the shareholders‘ meeting, and agreed the Wu
Changyuan to transferred total 0.18% equity of the Ridian Technology to the Company. After thetransfer, the Company directly holds 99.0361% stock rights of Ridian Technology.
15) CHANGHONG MEILING ELECTRIC INDONESIA, PT.(hereinafter referred to as IndonesiaChanghong) is a subsidiary established in Indonesia and jointly invested by Zhongshan Changhongand Sichuan Changhong in 2016, the company‘s registered capital is 6 million US dollars, of whichZhongshan Changhong subscribed and paid 5.88 million US dollars in cash, accounting for 98% of theregistered 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 aresubscribed by Zhongshan Changhong in line with the agreement.
16) Changhong Ruba Trading Company (Private) Limited (hereinafter referred to as Changhong Ruba)
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2020 to 31 December 2020(Unless otherwise specified. RMB for record in the statement)
was a joint venture established by Zhongshan Changhong Appliances Company Limited and RUBAGENERAL TRADING FZE Company (―RUBA‖) on 5 August 2011 with the approval fromGuangdong Development and Reform Commission by issuance of the Approval Relating to JointConstruction of a Manufacturing and Selling Platform Project in Pakistan by Zhongshan ChanghongAppliances Company Limited (YFGWZ(2011)958). The resolution of the second extraordinaryshareholders' meeting of Zhongshan Changhong in 2016 passed the "Proposal on the Company'sCapital Increase to Changhong Ruba Trading Company (Private) Limited", and agreed that thecompany and UAE RUBA Company jointly increase capital to Changhong Ruba TradingCompany(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 RUBACompany invested 2.56 million US dollars, the shares held by both sides remained unchanged. Afterthe capital increase, the company‘s registered capital became 12.4 million US dollars, of whichZhongshan 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, andshareholding ratio was 40%.
17) Sichuan Changhong Air Conditioning Co., Ltd.(hereinafter referred to as Changhong AirConditioner), a limited liability company jointly set up by Sichuan Changhong and ChanghongChuangtou, was founded on November 28, 2008. Its registered capital was RMB 200 million uponestablishment, of which, Sichuan Changhong invested RMB 298 million (RMB 210,088,900 investedby monetary capital while RMB 87,911,100 invested by real material), equivalent to RMB 198 millionshares, accounting for 99% of the registered capital; and Changhong Chuangtou invested RMB 3million, accounting for 1% of the registered capital with equivalent of RMB 2 million shares. Theregistered capital receipt was verified by the verification report [CGYYZ (2008) No. 177] of SichuanGuangyuan Certified Public Accountants Co., Ltd. and [HLTHYZ (2008) No. 12-006] of SichuanHenglitai 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 Companyincreased capital of 650 million Yuan to Changhong Air Conditioner, after capital increased, registeredcapital of Sichuan Changhong comes to 850 million Yuan from 200 million Yuan, shareholding stillcounted as 100%.
18) Zhongshan Changhong Electric Co., LTD (hereinafter referred to as Zhongshan Changhong), wasthe original Guangdong Changhong Electric Co., Ltd., and is a limited liability company jointly set upby Sichuan Changhong and China Minmetals on May 22, 2001. Its registered capital was RMB 80million upon establishment, of which, Sichuan Changhong invested RMB 72 million, including RMB
69.3 million biding for the estate/ non-estate from original Zhongshan Sanrong Air-conditioner Co.,Ltd. And its patent use-right of RMB2.7 million, accounting for 90% of the registered capital; Chine
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2020 to 31 December 2020(Unless otherwise specified. RMB for record in the statement)
Minmetals invested RMB 8 million in monetary capital accounting 10% of the registered capital. TheCompany changed its name originally from Guangdong Changhong Electric Co., Ltd in July 2003. InDecember 2009, the Company obtained 90% equity of Zhongshan Changhong by consolidated undersame control. 10% equity held by China Minmetals has been transferred by ChanghongAir-conditioner on April 11, 2010. On 25 May 2014, the Company increased RMB 36 million toZhongshan Changhong, and Changhong AC increased RMB 4 million. In 2016, according to theoverseas development strategy of the Company and the development and operation needs of thesubsidiaries, the Company and the wholly-owned subsidiary Changhong Air Conditioning haveincreased capital of RMB 64 million Yuan to Zhongshan Changhong according to the existingshareholding ratio, among which the capital increase of the Company was RMB 57.6 million Yuan,and the capital increase of Changhong Air Conditioning was RMB 6.4 million Yuan. After thecompletion of this capital increase, the registered capital Zhongshan Changhong shall increase toRMB 184 million Yuan, the shareholding ratio of the company and Changhong Air Conditioningremained 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‘soverseas development strategy and the operation and development needs of its subsidiaries, theCompany and its wholly-owned subsidiary Changhong Air Conditioning increased capital of RMB150 million to Zhongshan Changhong according to the existing shareholding ratios, of which theCompany increased capital of RMB 135 million, Changhong Air-Conditioning increased capital ofRMB 15 million. After the completion of capital increase, the registered capital of ZhongshanChanghong has increased to RMB 334 million. The Company‘s and Changhong‘s shareholding ratiosin Zhongshan Changhong remain unchanged at 90% and 10%, of which the Company funded RMB
300.6 million, accounting for 90% of the registered capital, while Changhong Air Conditioning fundedRMB 33.4 million, accounting for 10% of the registered capital.
19) Hefei Meiling Group Holdings Limited (hereinafter referred to as Meiling Group), was thestate-owned company originally approved by People‘s Government of Hefei Province and established authorizedby SASAC of Hefei City. On July 14, 2008, 100% state-owned equity of Meiling Group has freelytransferred to Xingtai Holding by Hefei SASAC. Agreement by the approval of < State-ownedproperty agreement transfer from Meiling Group> [ HGZCQ (2010) No.34] of Hefei SASAC on April9, 2010, 100% state-owned property of Meiling Group after partial assets and liabilities separatedtransferred to the Company from Xingtai Holding as amount of RMB 113.2 million. There-registration of industrial and commercial procedure for Meiling Group after separated partial assetsliability has finished on July 28, 2010. The new Meiling Group has register capital of RMB 80 million,and has been verified by the [AD (2010) YZD No. 016] from Anhui Auding CPAs Co., Ltd.
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2020 to 31 December 2020(Unless otherwise specified. RMB for record in the statement)
20) Meiling Equator Household Appliance (Hefei) Co., Ltd.( hereinafter referred to as Equator HouseholdAppliance) was the Sino-foreign joint venture jointly set up by original Meiling Group and EQUATORINVESTMENTS (USA) INC.( EQUATOR for short), which have been approved by the[SWZWFZZ(2004) No.0103] of Approval Certificate of Foreign Enterprise from People‘sGovernment 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 registeredcapital while foreign company invested US$ 0.5 million in monetary capital and US$ 0.25 million inintangible assets, amounting to US$0.75 million, accounting 25% of the registered capital. The abovementioned investment verified by the verification report of [WYAYZ (2004) No. 135] from AnhuiYongan CPAs Co., Ltd. In July 2007, approved by [HWJ (2007) No.136] from Foreign TradeEconomic Cooperation Bureau of Hefei City, 25% equity held by EQUATOR transferred to AnhuiMeiling Electric Co., Ltd. Totally. The Company‘s register capital came into RMB 24,793,200 aftertransference, and was not the joint-venture any more. 25% equity owned by Anhui Meiling ElectricCo., Ltd has been transferred totally to original Meiling Group in July 2009.
21) Hefei Equator Appliance Co., Ltd.(hereinafter referred to as Equator Appliance) was jointly set up byoriginal Meiling Group and Yingkaite Appliance on September 26, 2007. Its register capital was RMB 12million, 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 theassessment value of intangible assets (land-use right), accounting 27.745% of total registered capital.The investment being verified by [WYAZ (2004) No. 135] from Anhui Yongan CPAs Co., Ltd.
22) Hongyuan Ground Energy Heat Pump Technology Co., Ltd. (hereinafter referred to as HongyuanGround Energy) was established on 28 August 2015, it is a limited liability company authorized byAdministration for Industry and Commerce of Peicheng District, Mianyang, Sichuan, contributed bySichuan Changhong Air Conditioner Co., Ltd (hereinafter referred to as Changhong Air Conditioner)and Hengyouyuan Technology Development Group Co., Ltd. together. Registered capital amounted as50 million Yuan, including 25.5 million Yuan contributed by Changhong Air Conditioner in cash, a 51%in total registered capital; Hengyouyuan Technology Development Group Co., Ltd. invested 24.5million Yuan in cash, a 49% in registered capital.
23) Hongyuan Ground Energy Heat Pump Tech. (Zhongshan) Co., Ltd.(hereinafter referred to asHongyuan Zhongshan) was established and invested on 18 July 2017 with registered capital of 15million Yuan, The Hongyuan Ground Energy Heat Pump Tech. Co., Ltd contributed 1.5 million Yuanwith own funds and takes 100% in the registered capital.In 2018, the shareholdes of the HongyuanZhongshan decided to increase capital of 30 million Yuan, and contributed by the shareholderHongyuan Ground Energy; thus registered capital of Hongyuan Zhongshan up to 45 million Yuan
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2020 to 31 December 2020(Unless otherwise specified. RMB for record in the statement)
24) Meiling Candy Washing Machine Co., Ltd. (hereinafter referred to as Meiling Candy) wasestablished and registered on 27 April 2017, which was contributed by the Company and CandyHoover Group S.r.l. together. Registered capital counted as 150 million Yuan, including 90 millionYuan invested by the Company, a 60% in registered capital.
25) Guangzhou Changhong Trading Co., Ltd. (hereinafter referred to as Changhong Trading) wasestablished on 6 Jan. 2017, the wholly-owned subsidiary of Zhongshan Changhong Electric Co., LTD(hereinafter referred to as Zhongshan Changhong) with registered capital of one million Yuan
26) Hebei Hongmao Household Appliance Technology Co., Ltd (hereinafter referred to as HebeiHongmao) was established on 21 July 2017 with registered capital of 5 million Yuan. ChanghongRidian invested 5 million Yuan by own fund and takes 100% in registered capital.
27) Anhui Tuoxing Technology Co., Ltd. (hereinafter referred to as Tuoxing Technology) wasestablished on 20 May 2019 with registered capital of 10 million Yuan and it is the subsidiary ofZhongke Meiling with fully-owned establishment. As of December 31, 2020, actually 5 million yuancontributed.
28) CH-Meiling.International (Philippines) Inc. was established on 13 February 2020 in Philippineswith registered capital of US$ 1,000,000, takes 100% of the equity. As of December 31, 2020, theCompany has invested US$ 1,000,000,
29) Hefei Changhong Meiling Life Electric Co., Ltd was established on 24 December 2020, jointlyestablished by the Company and Ningbo Hongling Enterprise Management Partnership (LimitedPartnership). the Company contributed 35 million yuan, representing 70% of the equity while 15million yuan invested by Ningbo Hongling Enterprise Management Partnership (Limited Partnership),a 30% takes in the equity.
(2) Major non-wholly-owned subsidiary
| Subsidiary | Shareholding ratio of minority | Gains/losses attributable to minority in Current Year | Dividend distributed to minority announced in Current Year | Balance of minority’s interest at year-end |
| Zhongke Meiling | 36.73% | 16,912,259.50 | 4,796,676.00 | 68,814,126.04 |
| Hongyuan Ground Energy | 49.00% | -2,614,269.79 | 17,111,800.28 | |
| Ridian Technology | 0.96% | 395,230.53 | 600,000.00 | 1,288,826.12 |
(3) Financial information for major non-wholly-owned subsidiary
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2020 to 31 December 2020(Unless otherwise specified. RMB for record in the statement)
| Subsidiary | Balance at year-end | |||||
| Current assets | Non-current assets | Total assets | Current liability | Non-current liability | Total liabilities | |
| Zhongke Meiling | 386,201,073.54 | 133,596,263.07 | 519,797,336.61 | 323,587,127.53 | 8,867,591.28 | 332,454,718.81 |
| Hongyuan Ground Energy | 110,464,175.51 | 25,279,044.46 | 135,743,219.97 | 100,181,345.93 | 639,832.66 | 100,821,178.59 |
| Ridian Technology | 572,516,245.87 | 50,889,561.24 | 623,405,807.11 | 488,419,038.99 | 484,047.64 | 488,903,086.63 |
(Continued)
| Subsidiary | Balance at year-begin | |||||
| Current assets | Non-current assets | Total assets | Current liability | Non-current liability | Total liabilities | |
| Zhongke Meiling | 173,698,258.09 | 135,802,000.42 | 309,500,258.51 | 146,202,370.20 | 8,938,774.23 | 155,141,144.43 |
| Hongyuan Ground Energy | 72,495,161.24 | 29,851,452.34 | 102,346,613.58 | 59,872,173.74 | 2,217,153.99 | 62,089,327.73 |
| Ridian Technology | 469,012,870.35 | 55,302,405.39 | 524,315,275.74 | 368,560,861.13 | 171,540.99 | 368,732,402.12 |
(Continued)
| Subsidiary | Current Year | |||
| Operation income | Net profit | Total comprehensive income | Cash flow from operation activity | |
| Zhongke Meiling | 372,599,049.12 | 46,042,179.72 | 46,042,179.72 | 140,128,507.32 |
| Hongyuan Ground Energy | 269,504,660.68 | -5,335,244.47 | -5,335,244.47 | 51,692,147.85 |
| Ridian Technology | 1,083,259,433.15 | 41,169,846.86 | 41,169,846.86 | 51,830,916.29 |
(Continued)
| Subsidiary | Last Year | |||
| Operation income | Net profit | Total comprehensive income | Cash flow from operation activity | |
| Zhongke Meiling | 222,867,915.68 | 16,517,245.60 | 16,517,245.60 | 42,134,505.66 |
| Hongyuan Ground Energy | 405,759,143.48 | 5,360,622.82 | 5,360,622.82 | 3,492,950.80 |
| Ridian Technology | 629,710,961.93 | 19,614,873.59 | 19,614,873.59 | 131,645,676.68 |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2020 to 31 December 2020(Unless otherwise specified. RMB for record in the statement)
(4) Major limitation on using enterprise group‘s assets and liquidate debts of enterprise group: nil
(5) Offering financial supporting or other supports for structured entity that included in consolidationstatement scope: nil
2. Changes of owner‘ equity shares in subsidiary and its impacts
| Item | Ridian Technology | Wuhan Meizirong | Chengdu Meiling | Shanghai Meiling | Total |
| Original ratio of shares held | 98.86% | 91.00% | 96.00% | 99.00% | |
| Equity purchased from minority | 0.18% | 1.00% | 4.00% | 1.00% | 6.18% |
| Share issuance | |||||
| Ratio of shares held at period-end | 99.04% | 92.00% | 100.00% | 100.00% | |
| Cost of purchasing minority equity | 280,049.17 | 50,000.00 | 1.00 | 1.00 | 330,051.17 |
| Less: Ratio of the net assets measured by equity ratio while acquiring the subsidiary | 290,387.46 | -40,281.25 | -450,354.49 | -119,871.42 | -320,119.70 |
| Equity dilution for shares issuance | |||||
| Balance | -10,338.29 | 90,281.25 | 450,355.49 | 119,872.42 | 650,170.87 |
| Including: Capital public reserve adjusted | -10,338.29 | 90,281.25 | 450,355.49 | 119,872.42 | 650,170.87 |
In 2020, due to the acquisition of minority shareholders‘ equity in a subsidiary - Changhong Meiling RidianTechnology Co., Ltd, there is no difference between the newly acquired long-term equity investment and the share ofnet assets of the subsidiary calculated on an ongoing basis from the date of purchase based on the newly acquiredshareholding.In 2020, due to the acquisition of minority shareholders‘ equity of Wuhan Meizirong Electrical Marketing Co., Ltd bysubsidiary, the difference between the newly acquired long-term equity investment and the share of net assets of thesubsidiary calculated on an ongoing basis from the date of purchase based on the newly acquired shareholdingamounted as 90,281.2 yuan, which was included in the capital reserves.In 2020, due to the acquisition of minority shareholders‘ equity of Chengdu Meiling and Shanghai Meiling by thesubsidiary, the difference between the newly acquired long-term equity investment and the share of net assets of thesubsidiary calculated on an ongoing basis from the date of purchase based on the newly acquired shareholdingamounted as 570,227.91 yuan, which was included in the capital reserves.
3. Equity in joint venture or associate enterprise
(1) Major joint venture or associate enterprise
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
| Joint venture or associate enterprise | Main office place | Register place | Business nature | Shareholding ratio（%) | Accounting treatment for investment of joint venture or associate enterprise | |
| Directly | Indirectly | |||||
| Associated companies： | ||||||
| 1.ChanghongRubaElectricCompany (Private)Ltd. | Lahore, Pakistan | Lahore | Manufactures, sales | 40.00 | Equity | |
| 2.Hefei Xingmei Assets Management Co., Ltd. | Hefei | Hefei | Rental, agency | 48.28 | Equity | |
| 3.Sichuan Zhiyijia Network Technology Co., Ltd. | Mianyang | Mianyang | Sales | 50.00 | Equity | |
| 4.Hongyuan Ground Energy Heat Tech. Co., Ltd. | Mianyang | Mianyang | R & D, sales, after-sales | 49.00 | Equity | |
| 5.Sichuan Tianyou Guigu Technology Co., Ltd. | Mianyang | Mianyang | Manufactures, sales | 25.00 | Equity | |
| 6.Chengdu Guigu Environmental Tech. Co., Ltd. | Chengdu | Chengdu | R&D, manufacturing and sales | 25.00 | Equity | |
(2) Financial information for major Joint venture: nil
(3) Financial information for associate enterprise
| Item | Balance at year-end /Current Year | |||||
| ChanghongRubaElectricCompany(Private)Ltd. | Hefei Xingmei Assets Management Co., Ltd. | Sichuan Zhiyijia Network Technology Co., Ltd. | Hongyuan Ground Energy Heat Tech. Co., Ltd. | Sichuan Tianyou Guigu Technology Co., Ltd. | Chengdu Guigu Environmental Tech. Co., Ltd. | |
| Current assets | 68,287,114.60 | 626,580.92 | 3,812,812,831.86 | 40,622,241.47 | 21,480,727.03 | 17,707,474.44 |
| Including: cash and cash equivalent | 5,536,272.95 | 119,477.66 | 2,996,535,171.99 | 52,958.51 | 10,450,786.16 | 2,371,663.95 |
| Non-current assets | 45,830,745.35 | 18,704,537.29 | 1,226,646.52 | 10,161,277.73 | 12,352.49 | 13,175,012.62 |
| Total assets | 114,117,859.95 | 19,331,118.21 | 3,814,039,478.38 | 50,783,519.20 | 21,493,079.52 | 30,882,487.06 |
| Current liability | 129,084,729.80 | 5,192,189.07 | 3,724,855,931.57 | 5,562,937.27 | 10,075,118.54 | 19,463,087.16 |
| Non-current liability | 117,900.00 | 1,886,933.19 | ||||
| Total liabilities | 129,084,729.80 | 5,192,189.07 | 3,724,973,831.57 | 5,562,937.27 | 10,075,118.54 | 21,350,020.35 |
| Minority's interest | 822,750.86 | |||||
| Equity attributable to shareholder of parent company | -14,966,869.86 | 14,138,929.14 | 89,065,646.81 | 45,220,581.93 | 11,417,960.98 | 8,709,715.85 |
| Share of net assets measured by shareholding | -5,986,747.94 | 6,826,274.99 | 44,532,823.41 | 22,158,085.15 | 2,854,490.25 | 2,177,428.96 |
| Adjustment | ||||||
| --Goodwill | 821,877.28 | 3,887,027.34 | ||||
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020(Unless otherwise specified. RMB for record in the statement)
| Item | Balance at year-end /Current Year | |||||
| ChanghongRubaElectricCompany(Private)Ltd. | Hefei Xingmei Assets Management Co., Ltd. | Sichuan Zhiyijia Network Technology Co., Ltd. | Hongyuan Ground Energy Heat Tech. Co., Ltd. | Sichuan Tianyou Guigu Technology Co., Ltd. | Chengdu Guigu Environmental Tech. Co., Ltd. | |
| Unrealized profit of the internal downstream transactions | 49,697.83 | 6,191,361.16 | 54,975.58 | 4,398.74 | 24,449.53 | |
| Unrealized profit of the internal upstream transactions | ||||||
| Other | 5,937,050.11 | |||||
| Book value of the equity investment for associate enterprise | 6,826,274.99 | 39,163,339.53 | 22,103,109.57 | 2,850,091.51 | 6,040,006.77 | |
| Fair value of equity investment for the affiliates with consideration publicly | ||||||
| Operation income | 99,936,478.74 | 8,580,600,638.78 | 54,153,864.35 | 735,204.43 | 12,146,793.64 | |
| Financial expenses | 10,579,123.20 | 205,425.73 | -36,003,354.14 | 3,384.58 | -404,094.60 | 179,807.87 |
| Income tax expenses | 1,422,278.04 | 3,181,576.89 | ||||
| Net profit | -18,981,775.32 | -3,579,823.40 | 8,132,610.22 | -2,554,686.34 | 190,298.81 | -8,962,600.48 |
| Net profit of discontinuing operation | ||||||
| Other comprehensive income | ||||||
| Total comprehensive income | -18,981,775.32 | -3,579,823.40 | 8,132,610.22 | -2,554,686.34 | 190,298.81 | -8,962,600.48 |
| Dividend received from associate enterprise in Current Year | ||||||
(Continued)
| Item | Balance at year-begin /Last Year | |||||
| ChanghongRubaElectricCompany(Private)Ltd. | Hefei Xingmei Assets Management Co., Ltd. | Sichuan Zhiyijia Network Technology Co., Ltd. | Hongyuan Ground Energy Heat Tech. Co., Ltd. | Sichuan Tianyou Guigu Technology Co., Ltd. | Chengdu Guigu Environmental Tech. Co., Ltd. | |
| Current assets | 104,632,500.22 | 1,833,902.21 | 3,365,539,682.22 | 46,101,621.41 | 21,254,869.83 | 18,277,711.92 |
| Including: cash and | 5,030,479.12 | 1,726,698.95 | 2,349,815,225.85 | 925,625.77 | 11,975,680.17 | 3,026,977.11 |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2020 to 31 December 2020(Unless otherwise specified. RMB for record in the statement)
| Item | Balance at year-begin /Last Year | |||||
| ChanghongRubaElectricCompany(Private)Ltd. | Hefei Xingmei Assets Management Co., Ltd. | Sichuan Zhiyijia Network Technology Co., Ltd. | Hongyuan Ground Energy Heat Tech. Co., Ltd. | Sichuan Tianyou Guigu Technology Co., Ltd. | Chengdu Guigu Environmental Tech. Co., Ltd. | |
| cash equivalent | ||||||
| Non-current assets | 52,830,981.68 | 17,138,280.87 | 1,252,898.22 | 12,965,065.72 | 39,777.34 | 14,593,410.88 |
| Total assets | 157,463,481.90 | 18,972,183.08 | 3,366,792,580.44 | 59,066,687.13 | 21,294,647.17 | 32,871,122.80 |
| Current liability | 153,934,962.09 | 1,253,430.54 | 3,272,121,806.17 | 11,291,418.86 | 10,066,985.00 | 14,376,055.61 |
| Non-current liability | 651,580.00 | |||||
| Total liabilities | 153,934,962.09 | 1,253,430.54 | 3,272,773,386.17 | 11,291,418.86 | 10,066,985.00 | 14,376,055.61 |
| Minority's interest | 1,059,268.80 | |||||
| Equity attributable to shareholder of parent company | 3,528,519.81 | 17,718,752.54 | 94,019,194.27 | 47,775,268.27 | 11,227,662.17 | 17,435,798.39 |
| Share of net assets measured by shareholding | 1,411,407.92 | 8,554,613.73 | 47,009,597.14 | 23,409,881.45 | 2,806,915.54 | 4,358,949.60 |
| Adjustment | ||||||
| --Goodwill | 821,877.28 | 3,887,027.34 | ||||
| Unrealized profit of the internal downstream transactions | 393,075.11 | 2,223,966.56 | 34,940.80 | 4,691.99 | 28,751.02 | |
| Unrealized profit of the internal upstream transactions | ||||||
| Other | -1,018,332.81 | |||||
| Book value of the equity investment for associate enterprise | 8,554,613.73 | 45,607,507.85 | 23,374,940.65 | 2,802,223.55 | 8,217,225.92 | |
| Fair value of equity investment for the affiliates with consideration publicly | ||||||
| Operation income | 190,497,799.56 | - | 7,062,900,153.63 | 98,907,938.70 | -285,926.94 | 34,249,377.30 |
| Financial expenses | 369,800.99 | -5,725.41 | -11,188,778.31 | 73.08 | -486,373.04 | 279,703.22 |
| Income tax expenses | 2,656,027.23 | 1,244,095.42 | ||||
| Net profit | -25,031,693.64 | -1,792,637.83 | 3,755,397.84 | 528,794.11 | -17,234,926.28 | -3,921,022.61 |
| Net profit of discontinuing operation | ||||||
| Other comprehensive income | -2,111,831.07 | |||||
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
| Item | Balance at year-begin /Last Year | |||||
| ChanghongRubaElectricCompany(Private)Ltd. | Hefei Xingmei Assets Management Co., Ltd. | Sichuan Zhiyijia Network Technology Co., Ltd. | Hongyuan Ground Energy Heat Tech. Co., Ltd. | Sichuan Tianyou Guigu Technology Co., Ltd. | Chengdu Guigu Environmental Tech. Co., Ltd. | |
| Total comprehensive income | -27,143,524.71 | -1,792,637.83 | 3,755,397.84 | 528,794.11 | -17,234,926.28 | -3,921,022.61 |
| Dividend received from associate enterprise in Current Year | ||||||
(4) Financial summary for non-important Joint venture and associate enterprise
| Item | Balance at year-end /Current Year | Balance at year-begin /Last Year |
| Associated companies： | ||
| Total book value of investment | ||
| Total amount measured by shareholding ratio | ||
| --Net profit | -251,256.41 | -380,361.99 |
| --Other comprehensive income | ||
| -- Total comprehensive income | -251,256.41 | -380,361.99 |
(5) Major limitation on capital transfer ability to the Company from joint venture or affiliates: Nil
(6) Excess loss occurred in joint venture or affiliates: Nil
(7) Unconfirmed commitment with joint venture investment concerned: Nil
(8) Intangible liability with joint venture or affiliates investment concerned: Nil
4. Major conduct joint operation: Nil
5. Structured body excluding in consolidate financial statement: Nil
IX. Relevant risks related with financial instrumentThe major financial instruments of the Company include borrowings, account receivables, accountpayable, tradable financial assets, tradable financial liability, the details of which are set out in Note VI.Risks related to these financial instruments include exchange risks and interest rate risks. Themanagement of the Company controls and monitors the risk exposures to ensure the above risks areunder control.In connection with exchange risks, in order to prevent from exchange risks arising from foreign
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2020 to 31 December 2020(Unless otherwise specified. RMB for record in the statement)
currency transaction amount, foreign currency dominated loans and interest expenditure, the Companyentered into several forward exchange contracts with banks. Fair value of the forward exchangecontract which has been recognized as derivative financial instrument has been included in profits andlosses. As export business is increasing, if risks that are out of control of the Company occur such asappreciation of RMB, the Company will mitigate the relevant risks by adjusting its sales policy.The Company‘s interest rate risk arises from bank borrowings and interest-bearing debt. Financialliabilities at floating rate expose the Company to cash flow interest rate risk, and financial liabilities atfixed rate expose the Company to fair value interest rate risk. The Company will determine therespective proportion of contracts at fixed and floating rates based on the prevailing market conditions.As of 31 December 2020, the interest-bearing debts mainly referred to borrowing contracts at floatingrate denominated in RMB with total amount of 1,335,420,000.00 Yuan, the floating rate loan contractmeasured by RMB amounted as 495,000,000.00 Yuan in total; borrowing contracts at fixed ratedenominated in EUR with total amount of 76,237,500.00 Yuan; borrowing contracts at fixed ratedenominated in IDR with total amount of 16,280,000.00 Yuan. Risks relating to change of fair valueof financial instruments arising from movement of interest rate mainly related to bank borrowings atfixed rate. As for borrowings at fixed rate, the Company aims to keep its floating rate. Risks relating tochange of cash flow of financial instruments arising from movement of interest rate mainly related tobank borrowings at floating rate. The Company establishes its policy to keep floating rate for theseborrowings so as to eliminate fair value risk arising from movement of interest rate.
X. Fair value disclosure
1. Asset and liability measured by fair value at end of Current Year and fair value measurement level
| Item | Fair value at year-end | |||
| 1st level | 2nd level | 3rd level | Total | |
| I. Continuous fair value measurement | — | — | — | — |
| (i)Trading financial assets | 47,242,339.07 | 47,242,339.07 | ||
| 1.Financial assets measured at fair value and whose changes are included in current gains/losses | 47,242,339.07 | 47,242,339.07 | ||
| Including: Derivative financial assets | 47,242,339.07 | 47,242,339.07 | ||
| (ii) Other non-current financial assets | 43,148,931.34 | 505,000,000.00 | 548,148,931.34 | |
| (iii)Receivables financing | 1,632,388,702.83 | 1,632,388,702.83 | ||
| Total assets continuously measured at fair value | 47,242,339.07 | 43,148,931.34 | 2,137,388,702.83 | 2,227,779,973.24 |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
| Item | Fair value at year-end | |||
| 1st level | 2nd level | 3rd level | Total | |
| (ii) Trading financial liability | 4,584,076.51 | 4,584,076.51 | ||
| 1. Financial liabilities measured by fair value and with variation reckoned into current gains/losses | ||||
| Including: Derivative financial liability | 4,584,076.51 | 4,584,076.51 | ||
| Total liabilities continuously measured at fair value | 4,584,076.51 | 4,584,076.51 | ||
2. The basis for determining the market price of continuous and non-continuous first-level fair valuemeasurement itemsThe company's fair value measurement items are futures contracts and foreign exchange options. Themarket price of futures contracts is determined based on the closing price of the futures contract at theend of the period; the market price of foreign exchange options is determined based on the quotationof 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 parametersfor continuous and non-continuous second-level fair value measurement itemsThe fair value measurement items arelong-term investments in the fund companies. For long-terminvestments in fund companies, the assessed book value can represent the best estimate of fair valuewithin the scope.
4. Qualitative and quantitative information on the valuation techniques used and important parametersfor continuous and non-continuous third-level fair value measurement itemsThe company‘s fair value measurement items are investments in Sichuan Changhong Group FinanceCo., Ltd. and Huishang Bank Co., Ltd. Since there is no active market quotation and no major changeshave been found in the investment until the reporting period, the investment cost represents the bestestimate of the fair value within the scope, so its cost is regarded as the fair value. Due to the shortremaining period of the receivables financing, the book value is close to the fair value, and the faceamount is used as the fair value.
XI. Related parties and related transaction(I) Relationship of related parties
1. Controlling shareholder and ultimate controller
(1) Controlling shareholder and ultimate controller
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2020 to 31 December 2020(Unless otherwise specified. RMB for record in the statement)
| Controlling shareholder and ultimate controller | Registration place | Business nature | Registered capital | Share-holding ratio in the Company | Voting rights ratio in the Company |
| Sichuan Changhong Electric Co., Ltd. | Mianyang | Manufacture and sales | 4,616,244,222.00 | 26.98% | 26.98% |
Sichuan Changhong Electronics Holding Group is the controlling shareholder of Sichuan ChanghongElectric Co., LTD, and the SASAC Mianyang office holds 100.00% equity interests of SichuanChanghong Electronic Holding Group, which means that SASAC Mianyang office is the ultimatecontroller of the Company.
(2) Register capital and change thereof of controlling shareholder
| Controlling shareholder | Balance at year-begin | Increase this year | Decrease this year | Balance at year-end |
| 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
| Controlling shareholder | Amount of shares held | Shareholding ratio | ||
| Balance at year-end | Balance at year-begin | Ratio at year-end | Ratio at year-beginning | |
| Sichuan Changhong Electric Co., Ltd. | 281,832,434.00 | 281,832,434.00 | 26.98% | 26.98% |
2. Subsidiary
Found more in Note ―VIII. 1 (1) Enterprise group composition‖
3. Joint venture and associated enterprise
Major Joint venture and associated enterprise of the Company found more in Note ―VIII. 3 (1) majorjoint venture and associated enterprise‖. Other Joint venture and associated enterprise that have relatedtransactions occurred with the Company in Current Year or occurred in last period, and with balanceresults:
| Joint venture and associated enterprise | Relationship with the company |
| Hefei Meiling Solar Energy Technology Co., Ltd. | Associated enterprise of subsidiary Meiling Group |
| ChanghongRubaElectricCompany(Private)Ltd. | Associated enterprise of subsidiary Zhongshan Changhong |
| Hefei Xingmei Assets Management Co., Ltd. | Associated enterprise of the Company |
| Sichuan Zhiyijia Network Technology Co., Ltd. | Associated enterprise of the Company, has the same controlling shareholder and actual control of the Company |
| Hongyuan Ground Energy Heat Tech. Co., Ltd. | Associated enterprise of subsidiary Changhong Air-conditioner |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
| Joint venture and associated enterprise | Relationship with the company |
| Sichuan Tianyou Guigu Technology Co., Ltd. | Associated enterprise of subsidiary Changhong Air-conditioner |
| Chengdu Guigu Environmental Tech. Co., Ltd. | Associated enterprise of subsidiary Changhong Air-conditioner |
4.Other related party
| Other related party | Relationship with the company |
| Sichuan Changhong International Travel Service Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Hunan Grand-Pro Intelligent Tech. Company | Control by same controlling shareholder and ultimate controller |
| Mianyang Huafeng Interconnect Technology Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| CHANGHONG ELECTRIC (AUSTRALIA) PTY.LTD. | Control by same controlling shareholder and ultimate controller |
| CHANGHONG ELECTRIC MIDDLE EAST FZCO | Control by same controlling shareholder and ultimate controller |
| Sichuan Changhong Electronic Products Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| BVCH Optronics (Sichuan) Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Hefei Changhong New Energy Technology Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Changhong Mold Plastic Tech. Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| ChanghongEuropeElectrics.r.o | Control by same controlling shareholder and ultimate controller |
| Changhong Huayi Compressor Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Changhong Jijia Fine Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Changhong Minsheng Logistics Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Service Exp. Appliance Service Chain Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Changhong Precision Electronics Tech. Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| PT.CHANGHONGELECTRICINDONESIA | Control by same controlling shareholder and ultimate controller |
| CHANGHONG(HK)TRADINGLIMITED | Control by same controlling shareholder and ultimate controller |
| Sichuan Changhong Device Technology Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Chengdu Changhong Electronic Technology Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Lejiayi Chain Management Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Hongwei Technology Co., Ltd. | Control by same controlling shareholder and ultimate |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
| Other related party | Relationship with the company |
| controller | |
| Sichuan Changhong Real Estate Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Changhong New Energy Technology Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Hefei Changhong Industrial Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Changhong International Holdings (Hong Kong) Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Guangdong Changhong Electronics Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Changhong Package Printing Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Changhong Jineng Sunshine Technology Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Changhong Power Source Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Hongxin Software Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Changhong Electronic System Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Changhong Network Technology Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Mianyang Science & Technology City Big Data Technology Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Guangyuan Changhong Electronic Technology Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Yuanxin Financial Lease Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Changhong Shundatong Tech. Development Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Changhong Smart Health Technology Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Orion.PDP.Co.,ltd | Control by same controlling shareholder and ultimate controller |
| 081 Electronic Group Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Changhong International Hotel Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Aichuang Science & Technology Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Changhong Intelligent Manufacturing Technology Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Changhong Property Services Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Huanyu Industrial Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Jiahong Industrial Co., Ltd. | Control by same controlling shareholder and ultimate controller |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
| Other related party | Relationship with the company |
| Sichuan Ailian Science & Technology Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Changhong Gerun Environmental Protection Tech. Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Hongcheng Real Estate Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Huafeng Enterprise Group Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Changhong Group Finance Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Changhong Education Technology Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Beijing Changhong Tech. Co. Ltd. | Subsidiary of the associated enterprise of controlling shareholder |
| Sichuan Hongyu Metal Manufacturing Co., Ltd. | Associated enterprise of other enterprise that have the same controlling shareholder |
| Sichuan Hongran Green Energy Co., Ltd. | Associated enterprise of controlling shareholder |
| Sichuan Changxin Refrigeration Parts Co., Ltd. | Associated enterprise of controlling shareholder |
| Mianyang Highly Electric Co., Ltd. | Associated enterprise of controlling shareholder |
| Sichuan Hongmofang Network Technology Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Changhong Intelligent Technology Co., Ltd. | Control by same controlling shareholder and ultimate controller |
(ii) Related transactions
(1) Purchasing commodity
| Related party | Content | Current Year (in 10 thousand Yuan) | Last Year (in 10 thousand Yuan) |
| Sichuan Changhong Mold Plastic Tech. Co., Ltd. | Purchasing commodity | 59,503.77 | 63,000.18 |
| Changhong Huayi Compressor Co., Ltd. | Purchasing commodity | 46,880.45 | 38,238.09 |
| Sichuan Changhong Electric Co., Ltd. | Purchasing commodity | 34,964.57 | 33,598.70 |
| Sichuan Changhong Jijia Fine Co., Ltd. | Purchasing commodity | 23,064.49 | 24,924.66 |
| Sichuan Changxin Refrigeration Parts Co., Ltd. | Purchasing commodity | 19,221.74 | 31,004.61 |
| Mianyang Highly Electric Co., Ltd. | Purchasing commodity | 13,419.75 | 20,297.34 |
| Sichuan Aichuang Science & Technology Co., Ltd. | Purchasing commodity | 12,606.33 | 9,800.56 |
| Changhong.Ruba.Electric.Company (Private) Ltd. | Purchasing commodity | 7,610.32 | 14,248.25 |
| Sichuan Changhong Package Printing Co., Ltd. | Purchasing commodity | 6,016.51 | 8,304.76 |
| Changhong International Holdings (Hong Kong) Co., Ltd. | Purchasing commodity | 2,655.02 | 39.47 |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020(Unless otherwise specified. RMB for record in the statement)
| Related party | Content | Current Year (in 10 thousand Yuan) | Last Year (in 10 thousand Yuan) |
| Sichuan Ailian Science & Technology Co., Ltd. | Purchasing commodity | 1,796.54 | 2,073.65 |
| Sichuan Changhong Electronic Products Co., Ltd. | Purchasing commodity | 1,588.38 | 2,401.66 |
| Sichuan Changhong Precision Electronics Tech. Co., Ltd. | Purchasing commodity | 1,003.39 | 1,270.34 |
| Hunan Grand-Pro Intelligent Tech. Company | Purchasing commodity | 880.73 | 777.09 |
| Hefei Changhong Industrial Co., Ltd. | Purchasing commodity | 632.25 | |
| Hongyuan Ground Energy Heat Tech. Co., Ltd. | Purchasing commodity | 379.24 | 32.64 |
| Sichuan Zhiyijia Network Technology Co., Ltd. | Purchasing commodity | 371.14 | 96.01 |
| Guangdong Changhong Electronics Co., Ltd. | Purchasing commodity | 293.63 | 233.81 |
| 081 Electronic Group Co., Ltd. | Purchasing commodity | 22.70 | 49.47 |
| Sichuan Changhong Intelligent Manufacturing Technology Co., Ltd. | Purchasing commodity | 13.32 | 99.30 |
| Sichuan Changhong New Energy Technology Co., Ltd. | Purchasing commodity | 3.97 | 2.18 |
| Sichuan Changhong Electronics Holding Group Co., Ltd. | Purchasing commodity | 1.78 | 9.11 |
| Guangyuan Changhong Electronic Technology Co., Ltd. | Purchasing commodity | 0.88 | 37.66 |
| Lejiayi Chain Management Co., Ltd. | Purchasing commodity | 0.33 | 5.96 |
| Sichuan Service Exp. Appliance Service Chain Co., Ltd. | Purchasing commodity | 0.19 | |
| Sichuan Jiahong Industrial Co., Ltd. | Purchasing commodity | 0.03 | |
| Sichuan Hongwei Technology Co., Ltd. | Purchasing commodity | 426.64 | |
| Sichuan Changhong International Hotel Co., Ltd. | Purchasing commodity | 18.86 | |
| Sichuan Changhong Power Source Co., Ltd. | Purchasing commodity | 0.30 | |
| Sichuan Hongxin Software Co., Ltd. | Purchasing commodity | 16.98 | |
| Sichuan Changhong Property Services Co., Ltd. | Purchasing commodity | 0.03 | |
| Sichuan Changhong Electronic System Co., Ltd. | Purchasing commodity | 4.74 | |
| Sichuan Changhong Network Technology Co., Ltd. | Purchasing commodity | 9.30 | |
| Sichuan Tianyou Guigu Technology Co., Ltd. | Purchasing commodity | -29.26 | |
| Chengdu Guigu Environmental Tech. Co., Ltd. | Purchasing commodity | 6.46 | |
| Total | 232,931.45 | 250,999.55 |
(2) Accept the services
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
| Related party | Content | Current Year | Last Year |
| Sichuan Changhong Minsheng Logistics Co., Ltd. | Accept the services | 414,991,661.95 | 437,841,044.49 |
| Sichuan Service Exp. Appliance Service Chain Co., Ltd. | Accept the services | 275,753,460.11 | 239,791,744.81 |
| Sichuan Changhong Electric Co., Ltd. | Accept the services | 13,064,499.47 | 15,698,020.68 |
| Sichuan Hongwei Technology Co., Ltd. | Accept the services | 4,359,668.84 | 372,168.84 |
| Sichuan Changhong Property Services Co., Ltd. | Accept the services | 3,044,428.21 | 4,087,128.07 |
| Sichuan Changhong Electronics Holding Group Co., Ltd. | Accept the services | 1,428,582.09 | 683,104.41 |
| Sichuan Hongxin Software Co., Ltd. | Accept the services | 1,120,832.04 | 344,269.80 |
| Sichuan Changhong Jijia Fine Co., Ltd. | Accept the services | 1,002,110.60 | 38,056.39 |
| Guangyuan Changhong Electronic Technology Co., Ltd. | Accept the services | 640,277.20 | |
| Sichuan Jiahong Industrial Co., Ltd. | Accept the services | 533,487.03 | 70,777.77 |
| Guangdong Changhong Electronics Co., Ltd. | Accept the services | 491,458.60 | 478,854.47 |
| Sichuan Changhong Mold Plastic Tech. Co., Ltd. | Accept the services | 448,031.09 | 108,415.22 |
| Sichuan Changhong International Travel Service Co., Ltd. | Accept the services | 245,433.88 | 536,069.03 |
| Sichuan Zhiyijia Network Technology Co., Ltd. | Accept the services | 185,590.06 | 2,961,015.42 |
| Sichuan Changhong Gerun Environmental Protection Tech. Co., Ltd. | Accept the services | 86,666.96 | |
| Sichuan Changhong International Hotel Co., Ltd. | Accept the services | 51,449.87 | 146,160.13 |
| Sichuan Changhong Network Technology Co., Ltd. | Accept the services | 32,908.38 | 45,698.47 |
| Sichuan Changhong Intelligent Manufacturing Technology Co., Ltd. | Accept the services | 16,375.22 | 2,305,673.20 |
| Sichuan Aichuang Science & Technology Co., Ltd. | Accept the services | 16,037.74 | |
| Sichuan Hongmofang Network Technology Co., Ltd. | Accept the services | 2,122.64 | |
| Sichuan Changhong Electronic Products Co., Ltd. | Accept the services | 450,488.09 | |
| 081 Electronic Group Co., Ltd. | Accept the services | 420,000.00 | |
| Sichuan Ailian Science & Technology Co., Ltd. | Accept the services | 26,251.68 | |
| Total | 717,515,081.98 | 706,404,940.97 |
(3) Purchase fuel and power
| Related party | Content | Current Year | Last Year |
| Sichuan Changhong Electric Co., Ltd. | Accept fuel power | 18,457,320.38 | 17,956,706.73 |
| Guangdong Changhong Electronics Co., Ltd. | Accept fuel power | 1,122,776.22 | 1,429,349.92 |
| Changhong Huayi Compressor Co., Ltd. | Accept fuel power | 511,235.41 | 825,915.60 |
| Sichuan Hongran Green Energy Co., Ltd. | Accept fuel power | 488,435.52 | 855,091.21 |
| Hefei Changhong New Energy Technology Co., Ltd. | Accept fuel power | 366,759.90 | 368,818.66 |
| Sichuan Changhong Property Services Co., Ltd. | Accept fuel power | 20,789.37 | 21,883.45 |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2020 to 31 December 2020(Unless otherwise specified. RMB for record in the statement)
| Related party | Content | Current Year | Last Year |
| Total | 20,967,316.80 | 21,457,765.57 |
(4) Sales of goods/offering labor service
| Related party | Content | Current Year (in 10 thousand Yuan) | Last Year (in 10 thousand Yuan) |
| Sichuan Zhiyijia Network Technology Co., Ltd. | Sales of goods/offering labor service | 436,632.20 | 295,507.43 |
| CHANGHONG (HK) TRADING LIMITED | Sales of goods | 48,410.22 | 36,912.93 |
| Sichuan Changhong Mold Plastic Tech. Co., Ltd. | Sales of goods/offering labor service | 23,491.31 | 20,784.26 |
| CHANGHONG ELECTRIC (AUSTRALIA) PTY.LTD. | Sales of goods | 14,983.14 | 6,629.12 |
| Changhong International Holdings (Hong Kong) Co., Ltd. | Sales of goods | 13,452.31 | 164.88 |
| Sichuan Changxin Refrigeration Parts Co., Ltd. | Sales of goods | 6,957.18 | 10,028.00 |
| Changhong Europe Electric s.r.o | Sales of goods | 5,483.90 | 166.90 |
| Sichuan Changhong Jijia Fine Co., Ltd. | Sales of goods/offering labor service | 5,473.87 | 4,486.86 |
| Hongyuan Ground Energy Heat Tech. Co., Ltd. | Sales of goods | 5,204.57 | 9,143.17 |
| Orion.PDP.Co.,ltd | Sales of goods | 2,634.90 | 3,473.67 |
| Sichuan Changhong Electric Co., Ltd. | Sales of goods/offering labor service | 1,301.87 | 2,277.33 |
| CHANGHONG ELECTRIC MIDDLE EAST FZCO | Sales of goods | 1,158.97 | 1,285.90 |
| Changhong Ruba Electric Company (Private) Ltd. | Sales of goods | 1,079.90 | 7,299.85 |
| Sichuan Aichuang Science & Technology Co., Ltd. | Sales of goods/offering labor service | 813.29 | 109.88 |
| Sichuan Changhong Gerun Environmental Protection Tech. Co., Ltd. | Sales of goods | 572.25 | 743.53 |
| Lejiayi Chain Management Co., Ltd. | Sales of goods | 549.82 | 6,254.86 |
| Sichuan Service Exp. Appliance Service Chain Co., Ltd. | Sales of goods | 403.10 | 599.76 |
| Guangdong Changhong Electronics Co., Ltd. | Sales of goods | 158.46 | 61.73 |
| Chengdu Guigu Environmental Tech. Co., Ltd. | Sales of goods/offering labor service | 135.91 | 1,289.69 |
| Sichuan Changhong International Hotel Co., Ltd | Sales of goods | 70.35 | 1,024.84 |
| Sichuan Changhong Network Technology Co., Ltd. | Offering labor service | 99.14 | 0.10 |
| Sichuan Changhong International Hotel Co., Ltd. | Sales of | 73.61 | 3.62 |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
| Related party | Content | Current Year (in 10 thousand Yuan) | Last Year (in 10 thousand Yuan) |
| goods/offering labor service | |||
| Changhong Huayi Compressor Co., Ltd. | Offering labor service | 56.60 | 37.85 |
| Sichuan Changhong Intelligent Technology Co., Ltd. | Offering labor service | 54.72 | |
| Sichuan Changhong Intelligent Manufacturing Technology Co., Ltd. | Sales of goods/offering labor service | 51.09 | 3.34 |
| Sichuan Changhong New Energy Technology Co., Ltd. | Sales of goods/offering labor service | 42.57 | 12.01 |
| Mianyang Huafeng Interconnect Technology Co., Ltd. | Sales of goods/offering labor service | 40.86 | 844.98 |
| Sichuan Huafeng Enterprise Group Co., Ltd. | Sales of goods/offering labor service | 36.43 | 12.81 |
| Sichuan Changhong Device Technology Co., Ltd. | Sales of goods/Offering labor service | 10.56 | 59.22 |
| Sichuan Changhong Electronic Parts Co., Ltd | Sales of goods/Offering labor service | 35.40 | 8.22 |
| Sichuan Hongxin Software Co., Ltd. | Offering labor service | 5.04 | |
| Beijing Changhong Tech. Co. Ltd. | Sales of goods | 1.86 | |
| Sichuan Changhong Power Source Co., Ltd. | Sales of goods | 1.81 | 8.44 |
| Sichuan Hongmofang Network Technology Co., Ltd. | Sales of goods | 1.73 | |
| Hefei Changhong Industrial Co., Ltd. | Sales of goods | 0.43 | 111.05 |
| Guangyuan Changhong Electronic Technology Co., Ltd. | Sales of goods | 0.35 | 112.06 |
| Sichuan Changhong Minsheng Logistics Co., Ltd. | Sales of goods/offering labor service | 3.48 | 168.46 |
| Sichuan Changhong Real Estate Co., Ltd. | Sales of goods/offering labor service | -2.61 | 159.22 |
| Sichuan Changhong Education Technology Co., Ltd. | Sales of goods/offering labor service | -84.74 | 1,194.40 |
| Sichuan Changhong Electronics Holding Group Co., Ltd. | Sales of goods | 31.91 | |
| Sichuan Hongwei Technology Co., Ltd. | Sales of goods | 0.76 | |
| Sichuan Changhong Smart Health Technology Co., Ltd. | Sales of goods | 0.44 | |
| Sichuan Changhong Property Services Co., Ltd. | Sales of goods | 6.60 |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2020 to 31 December 2020(Unless otherwise specified. RMB for record in the statement)
| Related party | Content | Current Year (in 10 thousand Yuan) | Last Year (in 10 thousand Yuan) |
| BVCH Optronics (Sichuan) Co., Ltd. | Sales of goods | 0.68 | |
| Sichuan Changhong Electronic Products Co., Ltd. | Sales of goods | 8.22 | |
| Sichuan Changhong Group Finance Co., Ltd. | Sales of goods | 1.84 | |
| Sichuan Changhong Package Printing Co., Ltd. | Sales of goods | 0.35 | |
| 081 Electronic Group Co., Ltd. | Sales of goods | 1.72 | |
| Sichuan Ailian Science & Technology Co., Ltd. | Sales of goods | 2.09 | |
| Sichuan Jiahong Industrial Co., Ltd. | Sales of goods | 13.87 | |
| Sichuan Changhong Precision Electronics Tech. Co., Ltd. | Sales of goods | 0.09 | |
| Hunan Grand-Pro Intelligent Tech. Company | Sales of goods | 0.29 | |
| Total | 569,395.85 | 411,041.01 |
Businesses between the Company and its connected persons are generally conducted under marketoperation rules as if they were the same as other business counter parties. For price of sale or purchaseand provision of other labor service between the Company and its related parties, the state pricing isapplicable if the pricing do exists; in case of absence of such state pricing, price is determined undermarket price; in case of absence of such market price, price is determined by both parties at actual costplus reasonable expenses; for some special services, the price of which cannot be determined underthe rule of cost plus expense, the price shall be determined by both parties by negotiation.
(5) Provide fuel power
| Related party | Content | Current Year | Last Year |
| Sichuan Changhong Mold Plastic Tech. Co., Ltd. | Provide fuels power | 7,268,571.71 | 7,573,536.90 |
| Sichuan Changhong Device Technology Co., Ltd. | Provide fuels power | 844,734.88 | 1,176,255.91 |
| Sichuan Changhong Jijia Fine Co., Ltd. | Provide fuels power | 158,726.95 | 138,288.90 |
| Sichuan Changhong Minsheng Logistics Co., Ltd. | Provide fuels power | 86,738.00 | 73,268.48 |
| Sichuan Zhiyijia Network Technology Co., Ltd. | Provide fuels power | 45,684.57 | |
| Guangdong Changhong Electronics Co., Ltd. | Provide fuels power | 38,436.16 | 651,741.40 |
| Sichuan Changhong Precision Electronics Tech. Co., Ltd. | Provide fuels power | 15,872.50 | 15,433.17 |
| Sichuan Jiahong Industrial Co., Ltd. | Provide fuels power | 13,065.53 | |
| Mianyang Science & Technology City Big Data Technology Co., Ltd. | Provide fuels power | 6,763.23 |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020(Unless otherwise specified. RMB for record in the statement)
| Related party | Content | Current Year | Last Year |
| Sichuan Changhong Network Technology Co., Ltd. | Provide fuels power | 6,484.24 | |
| Sichuan Hongwei Technology Co., Ltd. | Provide fuels power | 3,137.33 | 3,664.27 |
| Sichuan Service Exp. Appliance Service Chain Co., Ltd. | Provide fuels power | 9,503.85 | |
| Sichuan Changhong Electric Co., Ltd. | Provide fuels power | 13,454.51 | |
| Total | 8,488,215.10 | 9,655,147.39 |
6. Related rental
(1) Rent out
| Lessor | Lessee | Type of assets | Leasing income in Current Year | Leasing income in last year |
| Changhong Meiling | Sichuan Changhong Mold Plastic Tech. Co., Ltd. | workshop | 1,441,574.10 | 1,427,060.66 |
| Changhong Meiling | Sichuan Changhong Jijia Fine Co., Ltd. | workshop | 541,594.80 | 403,632.66 |
| Changhong Meiling | Sichuan Changhong Mold Plastic Tech. Co., Ltd. | Apartment | 447,269.14 | 628,310.13 |
| Changhong Meiling | Sichuan Changhong Mold Plastic Tech. Co., Ltd. | Warehouse | 282,430.19 | 448,301.88 |
| Changhong Meiling | Hefei Changhong Industrial Co., Ltd. | Apartment | 228,637.23 | 257,283.58 |
| Changhong Meiling | Sichuan Changhong Minsheng Logistics Co., Ltd. | Apartment | 211,594.52 | 157,161.90 |
| Changhong Meiling | Sichuan Zhiyijia Network Technology Co., Ltd. | Apartment | 209,364.69 | |
| Changhong Meiling | Sichuan Service Exp. Appliance Service Chain Co., Ltd. | Apartment | 156,252.00 | 135,130.67 |
| Changhong Meiling | Sichuan Changhong Jijia Fine Co., Ltd. | Warehouse | 139,040.18 | 133,280.16 |
| Changhong Meiling | Sichuan Changhong Jijia Fine Co., Ltd. | Apartment | 122,133.76 | 210,139.44 |
| Changhong Meiling | Sichuan Service Exp. Appliance Service Chain Co., Ltd. | Office | 43,633.32 | 130,377.53 |
| Changhong Meiling | Sichuan Changhong Precision Electronics Tech. Co., Ltd. | Apartment | 39,456.00 | 49,032.95 |
| Changhong Meiling | Sichuan Aichuang Science & Technology Co., Ltd. | Warehouse | 34,987.18 | 37,519.68 |
| Changhong Meiling | Sichuan Hongwei Technology Co., Ltd. | Apartment | 31,200.00 | |
| Changhong Meiling | Sichuan Changhong Jijia Fine Co., Ltd. | Forklift | 26,439.91 | 21,204.11 |
| Changhong Meiling | Sichuan Service Exp. Appliance Service Chain Co., Ltd. | Forklift | 9,600.00 | 9,600.00 |
| Changhong | Sichuan Ailian Science & Technology | Warehouse | 2,686.20 | 2,686.20 |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
| Lessor | Lessee | Type of assets | Leasing income in Current Year | Leasing income in last year |
| Meiling | Co., Ltd. | |||
| Changhong Meiling | Sichuan Aichuang Science & Technology Co., Ltd. | Forklift | 2,532.50 | 4,361.18 |
| Changhong Meiling | Hefei Changhong Industrial Co., Ltd. | Warehouse | 2,023.58 | |
| Changhong Meiling | Sichuan Changhong Jijia Fine Co., Ltd. | Appliance | 300.00 | |
| Changhong Meiling | Sichuan Changhong Minsheng Logistics Co., Ltd. | Office | 23,944.27 | |
| Changhong Meiling | Sichuan Service Exp. Appliance Service Chain Co., Ltd. | workshop | 43,241.00 | |
| Changhong Meiling | Sichuan Changhong Electric Co., Ltd. | Apartment | 60,943.50 | |
| ZhongkeMeiling | Sichuan Changhong Minsheng Logistics Co., Ltd. | workshop | 2,352,570.64 | 2,829,034.65 |
| Jiangxi Meiling | Sichuan Changhong Mold Plastic Tech. Co., Ltd. | workshop | 839,228.54 | 780,677.72 |
| Jiangxi Meiling | Sichuan Changhong Minsheng Logistics Co., Ltd. | Workshop,Office | 9,142.86 | 26,285.71 |
| Jiangxi Meiling | Changhong Huayi Compressor Co., Ltd. | Warehouse space leasing | 3,771.43 | 10,666.66 |
| Changhong Air-conditioner | Sichuan Changhong Jijia Fine Co., Ltd. | workshop | 6,131,693.75 | |
| Changhong Air-conditioner | Sichuan Changhong Mold Plastic Tech. Co., Ltd. | House and buildings | 5,925,054.84 | 3,950,036.56 |
| Changhong Air-conditioner | Sichuan Changhong Electric Co., Ltd. | Equipment | 2,401,421.34 | 2,111,100.00 |
| Changhong Air-conditioner | Sichuan Changhong Mold Plastic Tech. Co., Ltd. | Equipment | 665,334.62 | |
| Changhong Air-conditioner | Sichuan Changhong Jijia Fine Co., Ltd. | Equipment | 567,110.67 | |
| Changhong Air-conditioner | Sichuan Changhong Electric Co., Ltd. | workshop | 467,599.18 | |
| Changhong Air-conditioner | Sichuan Changxin Refrigeration Parts Co., Ltd. | Processing equipment of U | 300,000.00 | |
| Changhong Air-conditioner | Chengdu Guigu Environmental Tech. Co., Ltd. | House and buildings | 28,403.67 | 28,403.67 |
| Changhong Air-conditioner | Sichuan Changhong Electric Co., Ltd. | Conference Room | 1,834.86 | |
| Changhong Air-conditi | Sichuan Changxin Refrigeration Parts Co., Ltd. | House and buildings | 300,000.00 |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
| Lessor | Lessee | Type of assets | Leasing income in Current Year | Leasing income in last year |
| oner | ||||
| Changhong Air-conditioner | Sichuan Huafeng Enterprise Group Co., Ltd. | Conference Room | 3,669.72 | |
| Zhongshan Changhong | Guangdong Changhong Electronics Co., Ltd. | Office building | 149,076.80 | 197,458.25 |
| Zhongshan Changhong | Sichuan Changhong Mold Plastic Tech. Co., Ltd. | 2# living area | 84,813.23 | 81,240.00 |
| Zhongshan Changhong | Sichuan Changhong Precision Electronics Tech. Co., Ltd. | 2# living area | 78,313.34 | 71,451.61 |
| Zhongshan Changhong | Sichuan Changhong Minsheng Logistics Co., Ltd. | Parts of the office building rent-out | 31,188.42 | 35,338.99 |
| Zhongshan Changhong | Sichuan Changhong Device Technology Co., Ltd. | 2# living area | 10,861.40 | 58,444.98 |
| Ridian Technology | Sichuan Changhong Device Technology Co., Ltd. | workshop | 1,710,745.15 | 1,417,391.01 |
| Ridian Technology | Sichuan Changhong Minsheng Logistics Co., Ltd. | workshop | 76,190.48 | |
| Ridian Technology | Sichuan Hongwei Technology Co., Ltd. | workshop | 45,257.14 | 45,257.14 |
| Ridian Technology | Changhong International Holdings (Hong Kong) Co., Ltd. | Office | 95,238.86 | |
| Ridian Technology | Changhong International Holdings (Hong Kong) Co., Ltd. | Automobile | 31,034.48 | |
| Total | 25,852,061.66 | 16,256,241.51 | ||
(2) Lessee of related parties
| Lessor | Lessee | Type of assets | Leasing expense in Current Year | Leasing expense in last year |
| Guangdong Changhong Electronics Co., Ltd. | Zhongshan Changhong | Workshop leasing | 1,015,654.68 | 3,241,100.58 |
| Guangdong Changhong Electronics Co., Ltd. | Zhongshan Changhong | Staff dormitory | 178,332.78 | |
| Sichuan Changhong Electric Co., Ltd. | Changhong Air-conditioner | Workshop leasing | 2,567,272.94 | |
| Sichuan Changhong Electric Co., Ltd. | Changhong Air-conditioner | Warehouse rental | 634,664.55 | |
| Sichuan Changhong Electronics Holding Group Co., Ltd. | Changhong Air-conditioner | Dormitory rental | 208,690.40 | |
| Sichuan Changhong Electronics Holding Group Co., Ltd. | Changhong Air-conditioner | Outlets lease | 125,548.80 | |
| Guangdong Changhong Electronics Co., Ltd. | Ridian Technology | Staff dormitory | 55,294.11 | |
| Sichuan Changhong Electric Co., Ltd. | Ridian Technology | Staff dormitory | 48,257.03 | |
| Sichuan Changhong Electric Co., Ltd. | Mianyang Meiling | Workshop leasing | 3,246,239.65 | 42,752.89 |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020(Unless otherwise specified. RMB for record in the statement)
| Lessor | Lessee | Type of assets | Leasing expense in Current Year | Leasing expense in last year |
| Sichuan Changhong Electronics Holding Group Co., Ltd. | Mianyang Meiling | Staff dormitory | 48,785.77 | 8,528.25 |
| Sichuan Changhong Property Services Co., Ltd. | Mianyang Meiling | Flower lease | 9,271.70 | 114,323.85 |
| Sichuan Changhong Electric Co., Ltd. | Meiling Group | Office | 885,487.38 | |
| Beijing Changhong Tech. Co. Ltd. | Meiling Group | Office | 78,932.59 | |
| Changhong Huayi Compressor Co., Ltd. | Jiangxi Meiling | Staff dormitory | 53,246.28 | 291,940.55 |
| Chengdu Changhong Electronic Technology Co., Ltd. | Hongmei Intelligent | Office | 624,277.12 | 454,450.37 |
| Sichuan Changhong Electric Co., Ltd. | Hongmei Intelligent | Workshop, Office | 93,085.18 | |
| Guangdong Changhong Electronics Co., Ltd. | Ground Energy Heat Pump | Staff dormitory | 103,432.19 | 147,850.00 |
| Total | 9,804,455.38 | 4,472,964.26 |
7. Related guarantee
| Secured party | Sponsored party | Maximum guarantee amount (in 10 thousand Yuan) | Start | Date due | Completed (Y/N) |
| Changhong Meiling | Jiangxi Meiling | 5,000.00 | 2019.03.12 | 2020.03.11 | Y |
| Changhong Meiling | Jiangxi Meiling | 10,000.00 | 2019.03.14 | 2020.03.14 | Y |
| Changhong Meiling | Jiangxi Meiling | 10,000.00 | 2020.04.09 | 2021.04.09 | N |
| Changhong Meiling | Nonferrous Metals | 1,000.00 | 2020.03.20 | 2021.03.05 | N |
| Changhong Meiling | Meiling Group | 6,000.00 | 2020.03.26 | 2021.03.26 | N |
| Changhong Meiling | Meiling Group | 10,000.00 | 2020.12.30 | 2021.12.29 | N |
| Changhong Meiling | Changhong Air-conditioner | 20,000.00 | 2019.07.30 | 2020.03.25 | Y |
| Changhong Meiling | ChanghongRuba | 2,062.41 | 2019.01.28 | 2020.02.15 | Y |
| Changhong Meiling | ChanghongRuba | 2,103.51 | 2019.12.23 | 2021.01.15 | N |
| Changhong Meiling | ChanghongRuba | 1,983.25 | 2020.01.17 | 2020.11.06 | Y |
| Changhong Meiling | ChanghongRuba | 1,831.50 | 2020.12.16 | 2021.12.07 | N |
| Changhong Meiling | Ridian Technology | 4,000.00 | 2019.03.31 | 2020.03.30 | Y |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2020 to 31 December 2020(Unless otherwise specified. RMB for record in the statement)
| Secured party | Sponsored party | Maximum guarantee amount (in 10 thousand Yuan) | Start | Date due | Completed (Y/N) |
| Changhong Meiling | Ridian Technology | 6,500.00 | 2019.08.22 | 2020.08.22 | Y |
| Changhong Meiling | Ridian Technology | 2,500.00 | 2020.01.28 | 2020.07.27 | Y |
| Changhong Meiling | Ridian Technology | 3,000.00 | 2020.03.14 | 2021.03.13 | N |
| Changhong Meiling | Ridian Technology | 4,000.00 | 2020.03.30 | 2021.03.31 | N |
| Changhong Meiling | Ridian Technology | 6,500.00 | 2020.08.22 | 2021.08.22 | N |
| Changhong Meiling | Ridian Technology | 5,000.00 | 2020.07.03 | 2021.07.02 | N |
| Changhong Meiling | Zhongke Meiling | 3,000.00 | 2019.07.18 | 2020.07.17 | Y |
| Changhong Meiling | Zhongke Meiling | 2,000.00 | 2020.12.25 | 2021.09.26 | N |
| Changhong Meiling | Zhongke Meiling | 2,000.00 | 2019.12.30 | 2020.11.22 | N |
| Changhong Meiling | Zhongke Meiling | 3,000.00 | 2019.08.20 | 2020.08.19 | Y |
| Changhong Meiling | Zhongke Meiling | 3,000.00 | 2020.09.22 | 2021.09.22 | N |
| Changhong Meiling | Zhongke Meiling | 2,000.00 | 2019.08.23 | 2020.08.23 | Y |
| Changhong Meiling | Zhongke Meiling | 2,000.00 | 2020.08.24 | 2021.08.24 | N |
| Changhong Meiling | Zhongke Meiling | 920.00 | 2019.09.24 | 2020.09.24 | Y |
| Changhong Meiling | Zhongke Meiling | 1,000.00 | 2020.11.19 | 2021.11.18 | N |
| Changhong Meiling | Zhongke Meiling | 1,000.00 | 2020.03.10 | 2021.03.10 | N |
| Changhong Meiling | Zhongke Meiling | 1,500.00 | 2020.06.01 | 2021.03.12 | N |
| Changhong Meiling | Zhongke Meiling | 500.00 | 2020.06.30 | 2021.03.15 | N |
| Changhong Meiling | Zhongshan Changhong | 10,000.00 | 2019.01.25 | 2020.01.24 | Y |
| Changhong Meiling | Zhongshan Changhong | 5,500.00 | 2019.03.15 | 2020.03.15 | Y |
| Changhong Meiling | Zhongshan Changhong | 10,000.00 | 2019.03.31 | 2020.03.30 | Y |
| Changhong Meiling | Zhongshan Changhong | 5,000.00 | 2019.06.20 | 2020.06.20 | Y |
| Changhong Meiling | Zhongshan Changhong | 15,000.00 | 2019.06.28 | 2020.06.27 | Y |
| Changhong Meiling | Zhongshan Changhong | 2,000.00 | 2019.08.21 | 2020.08.20 | Y |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2020 to 31 December 2020(Unless otherwise specified. RMB for record in the statement)
| Secured party | Sponsored party | Maximum guarantee amount (in 10 thousand Yuan) | Start | Date due | Completed (Y/N) |
| Changhong Meiling | Zhongshan Changhong | 10,000.00 | 2019.08.31 | 2020.08.31 | Y |
| Changhong Meiling | Zhongshan Changhong | 20,000.00 | 2020.06.12 | 2021.03.10 | N |
| Changhong Meiling | Zhongshan Changhong | 5,000.00 | 2020.03.09 | 2021.03.09 | N |
| Changhong Meiling | Zhongshan Changhong | 15,000.00 | 2020.01.10 | 2021.01.10 | N |
| Changhong Meiling | Zhongshan Changhong | 5,500.00 | 2020.03.15 | 2021.03.15 | N |
| Changhong Meiling | Zhongshan Changhong | 17,900.00 | 2020.04.14 | 2021.04.13 | N |
| Changhong Meiling | Zhongshan Changhong | 20,000.00 | 2020.03.30 | 2021.03.30 | N |
| Changhong Meiling | Zhongshan Changhong | 12,000.00 | 2020.04.28 | 2021.04.28 | N |
| Changhong Meiling | Zhongshan Changhong | 10,000.00 | 2020.08.31 | 2021.08.31 | N |
| Changhong Meiling | Zhongshan Changhong | 15,000.00 | 2020.07.03 | 2021.07.02 | N |
| Changhong Meiling | Zhongshan Changhong | 10,000.00 | 2018.08.09 | 2019.08.09 | Y |
| Changhong Meiling | Zhongshan Changhong | 5,000.00 | 2018.10.23 | 2019.10.23 | Y |
| Counter guarantee: | |||||
| Jiangxi Meiling | Changhong Meiling | 5,000.00 | 2019.03.12 | 2020.03.11 | Y |
| Jiangxi Meiling | Changhong Meiling | 10,000.00 | 2019.03.14 | 2020.03.14 | Y |
| Jiangxi Meiling | Changhong Meiling | 10,000.00 | 2020.04.09 | 2021.04.09 | N |
| Nonferrous Metals | Changhong Meiling | 1,000.00 | 2020.03.20 | 2021.03.05 | N |
| Meiling Group | Changhong Meiling | 6,000.00 | 2020.03.26 | 2021.03.26 | N |
| Meiling Group | Changhong Meiling | 10,000.00 | 2020.12.30 | 2021.12.29 | N |
| Changhong Air-conditioner | Changhong Meiling | 20,000.00 | 2019.07.30 | 2020.03.25 | Y |
| ChanghongRuba | Changhong Meiling | 2,062.41 | 2019.01.28 | 2020.02.15 | Y |
| ChanghongRuba | Changhong Meiling | 2,103.51 | 2019.12.23 | 2021.01.15 | N |
| ChanghongRuba | Changhong Meiling | 1,983.25 | 2020.01.17 | 2020.11.06 | Y |
| ChanghongRuba | Changhong Meiling | 1,831.50 | 2020.12.16 | 2021.12.07 | N |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020(Unless otherwise specified. RMB for record in the statement)
| Secured party | Sponsored party | Maximum guarantee amount (in 10 thousand Yuan) | Start | Date due | Completed (Y/N) |
| Ridian Technology | Changhong Meiling | 4,000.00 | 2019.03.31 | 2020.03.30 | Y |
| Ridian Technology | Changhong Meiling | 6,500.00 | 2019.08.22 | 2020.08.22 | Y |
| Ridian Technology | Changhong Meiling | 2,500.00 | 2020.01.28 | 2020.07.27 | Y |
| Ridian Technology | Changhong Meiling | 3,000.00 | 2020.03.14 | 2021.03.13 | N |
| Ridian Technology | Changhong Meiling | 4,000.00 | 2020.03.30 | 2021.03.31 | N |
| Ridian Technology | Changhong Meiling | 6,500.00 | 2020.08.22 | 2021.08.22 | N |
| Ridian Technology | Changhong Meiling | 5,000.00 | 2020.07.03 | 2021.07.02 | N |
| Zhongke Meiling | Changhong Meiling | 3,000.00 | 2019.07.18 | 2020.07.17 | Y |
| Zhongke Meiling | Changhong Meiling | 2,000.00 | 2020.12.25 | 2021.09.26 | N |
| Zhongke Meiling | Changhong Meiling | 2,000.00 | 2019.12.30 | 2020.11.22 | N |
| Zhongke Meiling | Changhong Meiling | 3,000.00 | 2019.08.20 | 2020.08.19 | Y |
| Zhongke Meiling | Changhong Meiling | 3,000.00 | 2020.09.22 | 2021.09.22 | N |
| Zhongke Meiling | Changhong Meiling | 2,000.00 | 2019.08.23 | 2020.08.23 | Y |
| Zhongke Meiling | Changhong Meiling | 2,000.00 | 2020.08.24 | 2021.08.24 | N |
| Zhongke Meiling | Changhong Meiling | 920.00 | 2019.09.24 | 2020.09.24 | Y |
| Zhongke Meiling | Changhong Meiling | 1,000.00 | 2020.11.19 | 2021.11.18 | N |
| Zhongke Meiling | Changhong Meiling | 1,000.00 | 2020.03.10 | 2021.03.10 | N |
| Zhongke Meiling | Changhong Meiling | 1,500.00 | 2020.06.01 | 2021.03.12 | N |
| Zhongke Meiling | Changhong Meiling | 500.00 | 2020.06.30 | 2021.03.15 | N |
| Zhongshan Changhong | Changhong Meiling | 10,000.00 | 2019.01.25 | 2020.01.24 | Y |
| Zhongshan Changhong | Changhong Meiling | 5,500.00 | 2019.03.15 | 2020.03.15 | Y |
| Zhongshan Changhong | Changhong Meiling | 10,000.00 | 2019.03.31 | 2020.03.30 | Y |
| Zhongshan Changhong | Changhong Meiling | 5,000.00 | 2019.06.20 | 2020.06.20 | Y |
| Zhongshan Changhong | Changhong Meiling | 15,000.00 | 2019.06.28 | 2020.06.27 | Y |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
| Secured party | Sponsored party | Maximum guarantee amount (in 10 thousand Yuan) | Start | Date due | Completed (Y/N) |
| Zhongshan Changhong | Changhong Meiling | 2,000.00 | 2019.08.21 | 2020.08.20 | Y |
| Zhongshan Changhong | Changhong Meiling | 10,000.00 | 2019.08.31 | 2020.08.31 | Y |
| Zhongshan Changhong | Changhong Meiling | 20,000.00 | 2020.06.12 | 2021.03.10 | N |
| Zhongshan Changhong | Changhong Meiling | 5,000.00 | 2020.03.09 | 2021.03.09 | N |
| Zhongshan Changhong | Changhong Meiling | 15,000.00 | 2020.01.10 | 2021.01.10 | N |
| Zhongshan Changhong | Changhong Meiling | 5,500.00 | 2020.03.15 | 2021.03.15 | N |
| Zhongshan Changhong | Changhong Meiling | 17,900.00 | 2020.04.14 | 2021.04.13 | N |
| Zhongshan Changhong | Changhong Meiling | 20,000.00 | 2020.03.30 | 2021.03.30 | N |
| Zhongshan Changhong | Changhong Meiling | 12,000.00 | 2020.04.28 | 2021.04.28 | N |
| Zhongshan Changhong | Changhong Meiling | 10,000.00 | 2020.08.31 | 2021.08.31 | N |
| Zhongshan Changhong | Changhong Meiling | 15,000.00 | 2020.07.03 | 2021.07.02 | N |
| Zhongshan Changhong | Changhong Meiling | 10,000.00 | 2018.08.09 | 2019.08.09 | Y |
| Zhongshan Changhong | Changhong Meiling | 5,000.00 | 2018.10.23 | 2019.10.23 | Y |
(8) Assets transfer, debt restructuring of related parties
| Related party | Type | Current Year | Last Year |
| Sichuan Changhong Intelligent Manufacturing Technology Co., Ltd. | Purchase and construction of fixed assets | 4,920,208.93 | 36,796,919.82 |
| Sichuan Huanyu Industrial Co., Ltd. | Purchase and construction of fixed assets | 2,164,755.99 | 19,897,298.71 |
| Sichuan Changhong Mold Plastic Tech. Co., Ltd. | Purchasing fixed assets | 1,654,600.00 | |
| Sichuan Zhiyijia Network Technology Co., Ltd. | Purchasing fixed assets | 820,469.07 | 104,693.81 |
| Sichuan Hongxin Software Co., Ltd. | Purchase and construction of fixed assets | 613,207.54 | 2,826,830.79 |
| Sichuan Changhong Jineng Sunshine Technology Co., Ltd. | Purchasing fixed assets | 42,348.02 | -23,340.00 |
| Sichuan Changhong Electric Co., Ltd. | Sales of fixed assets | 39,611.48 | 1,028,804.28 |
| Sichuan Service Exp. Appliance Service Chain Co., Ltd. | Purchasing fixed assets | 5,238.94 | |
| Sichuan Changxin Refrigeration Parts Co., Ltd. | Purchasing fixed assets | 1,894.30 |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
| Related party | Type | Current Year | Last Year |
| Guangdong Changhong Electronics Co., Ltd. | Purchase and construction of fixed assets | 12,743.36 | |
| Mianyang Science & Technology City Big Data Technology Co., Ltd. | Purchase and construction of fixed assets | 1,112,815.42 | |
| Sichuan Hongcheng Real Estate Co., Ltd. | Purchase and construction of fixed assets | 56,603.77 | |
| Sichuan Jiahong Industrial Co., Ltd. | Purchase and construction of fixed assets | 1,347,541.41 | |
| Sichuan Changhong Electric Co., Ltd. | Purchase and construction of fixed assets | 48,956,440.92 | |
| Sichuan Changhong Electronic System Co., Ltd. | Purchase and construction of fixed assets | 126,106.19 | |
| Sichuan Hongwei Technology Co., Ltd. | Purchasing fixed assets | 924.40 | |
| Sichuan Changhong Network Technology Co., Ltd. | Purchase and construction of fixed assets | 1,098,430.46 | |
| Sichuan Hongxin Software Co., Ltd. | Purchase intangible assets | 452,830.18 | |
| Sichuan Changhong Electric Co., Ltd. | Purchase intangible assets | 112,876,479.31 | |
| Changhong Shundatong Tech. Development Co., Ltd. | Sales of fixed assets | 128,199.13 | |
| Sichuan Changhong Electronics Holding Group Co., Ltd. | Sales of fixed assets | 17,383.08 | |
| Sichuan Changhong Gerun Environmental Protection Tech. Co., Ltd. | Sales of fixed assets | 4,570.77 | |
| Sichuan Changhong Jijia Fine Co., Ltd. | Sales of fixed assets | 9,980.82 | |
| Sichuan Jiahong Industrial Co., Ltd. | Sales of fixed assets | 4,813.70 | |
| Total | 10,262,334.27 | 226,837,070.33 |
(9) Other
| Name of company | Content | Current Year (in 10 thousand Yuan) | Last Year (in 10 thousand Yuan) |
| Yuanxin Financial Lease Co., Ltd. | Financing business, financing expenses and financial leasing | 6,466.21 | 391.67 |
(10) Related transaction with Changhong Finance Company
(1) Saving balance
| Name of company | Balance at period-end | Balance at period-begin | Interest income from bank saving in the period |
| Changhong Meiling Co., Ltd. | 1,860,047,247.52 | 3,081,631,716.95 | 86,876,555.02 |
| Zhongshan Changhong Electric Co., Ltd. | 404,582,475.31 | 13,782,922.16 | 4,098,517.68 |
| Changhong Meiling Ridian Technology Co., Ltd. | 162,196,324.57 | 76,106,470.22 | 1,342,686.16 |
| Zhongke Meiling Cryogenic Technology | 141,336,330.05 | 90,904,816.77 | 4,000,808.68 |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
| Name of company | Balance at period-end | Balance at period-begin | Interest income from bank saving in the period |
| Co., Ltd. | |||
| Sichuan Changhong Air Conditioning Co., Ltd. | 134,802,966.64 | 424,969,027.90 | 12,638,030.50 |
| Hongyuan Ground Energy Heat Pump Tech. (Zhongshan) Co., Ltd | 69,211,263.89 | 13,076,054.46 | 840,091.44 |
| Hebei Hongmao Household Appliance Technology Co., Ltd | 15,657,360.37 | 1,799,703.59 | 40,008.08 |
| Anhui Tuoxing Technology Co., Ltd. | 10,243,055.56 | 243,055.56 | |
| Hongyuan Ground Energy Heat Pump Tech. Co., Ltd | 114,826.06 | 100,690.19 | 2,763.86 |
| Mianyang Meiling Refrigeration Co., Ltd. | 50,871.36 | 925.37 | 44,945.99 |
| Jiangxi Meiling Electric Appliance Co., Ltd. | 9,544.98 | 9,504.34 | 40.64 |
| Hefei Meiling Group Holdings Limited | 3,742.21 | 798.43 | 3,743.06 |
| Total | 2,798,256,008.52 | 3,702,382,630.38 | 110,131,246.67 |
(2) Notes discounted
| Name of company | Commercial bill book discounted amount | Commercial bill discounted amount | Expenses of discounted |
| Changhong Meiling Co., Ltd. | 1,445,288,263.13 | 1,437,711,268.85 | 7,576,994.28 |
| Sichuan Changhong Air Conditioning Co., Ltd. | 843,353,638.28 | 836,535,171.79 | 6,818,466.49 |
| Ground Energy Heat Pump Tech. (Zhongshan) Co., Ltd. | 7,422,611.40 | 7,340,947.30 | 81,664.10 |
| Total | 2,296,064,512.81 | 2,281,587,387.94 | 14,477,124.87 |
(3) Notes issued
| Name of company | Issuing unit | Note amount | Type |
| Changhong Meiling Co., Ltd. | Sichuan Changhong Group Finance Co., Ltd. | 980,483,214.50 | Bank acceptance |
| Hebei Hongmao Household Appliance Technology Co., Ltd | Sichuan Changhong Group Finance Co., Ltd. | 29,776,934.53 | Bank acceptance |
| Sichuan Changhong Air Conditioning Co., Ltd. | Sichuan Changhong Group Finance Co., Ltd. | 1,339,688,343.39 | Bank acceptance |
| Zhongke Meiling Cryogenic Technology Co., Ltd. | Sichuan Changhong Group Finance Co., Ltd. | 31,955,247.03 | Bank acceptance |
| Changhong Meiling Ridian Technology Co., Ltd. | Sichuan Changhong Group Finance Co., Ltd. | 84,911,175.18 | Bank acceptance |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
| Name of company | Issuing unit | Note amount | Type |
| Zhongshan Changhong Electric Co., Ltd. | Sichuan Changhong Group Finance Co., Ltd. | 154,394,439.11 | Bank acceptance |
| Hongyuan Ground Energy Heat Pump Tech. (Zhongshan) Co., Ltd | Sichuan Changhong Group Finance Co., Ltd. | 68,589,337.19 | |
| Total | 2,689,798,690.93 | ||
(4) Borrowing: nil
(5) Accounts receivable factoring: nil
(11) Remuneration for key management
| Item Name | Current Year (in 10 thousand Yuan) | Last Year (in 10 thousand Yuan) |
| Total remuneration | 346.88 | 333.24 |
| Including: performance incentive fund |
(iii) Come and go balance with related parties
1.Receivable items
| Item Name | Related party | Balance at year-end | Balance at year-begin | ||
| Book balance | Bad debt provision | Book balance | Bad debt provision | ||
| Account receivable | Sichuan Zhiyijia Network Technology Co., Ltd. | 152,851,050.10 | 5,950.95 | 375,948,123.63 | |
| Account receivable | CHANGHONG ELECTRIC (AUSTRALIA) PTY.LTD. | 82,523,745.73 | 37,804,702.10 | ||
| Account receivable | CHANGHONG (HK) TRADING LIMITED | 74,561,075.45 | 75,242,050.75 | ||
| Account receivable | Changhong Ruba Electric Company (Private) Ltd. | 46,262,313.51 | 3,664,544.64 | 86,214,001.68 | |
| Account receivable | Changhong International Holdings (Hong Kong) Co., Ltd. | 23,280,926.68 | |||
| Account receivable | Changhong Europe Electric s.r.o | 7,285,475.46 | 1,664,405.17 | ||
| Account receivable | Hongyuan Ground Energy Heat Tech. Co., Ltd. | 2,557,611.11 | 259,719.23 | 10,720,675.24 | |
| Account receivable | Sichuan Changhong Electric Co., Ltd. | 1,648,021.88 | |||
| Account receivable | CHANGHONG ELECTRIC MIDDLE EAST FZCO | 1,641,684.42 | 1,552,183.58 | ||
| Account receivable | Orion.PDP.Co.,ltd | 1,365,471.85 | 8,267,321.25 | ||
| Account receivable | Sichuan Aichuang Science & Technology Co., Ltd. | 1,235,293.51 | 43,297.65 | ||
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
| Item Name | Related party | Balance at year-end | Balance at year-begin | ||
| Book balance | Bad debt provision | Book balance | Bad debt provision | ||
| Account receivable | Lejiayi Chain Management Co., Ltd. | 752,700.75 | 13,309.44 | 12,461,940.42 | |
| Account receivable | PT.CHANGHONG ELECTRIC INDONESIA | 703,520.00 | 3,844,393.51 | ||
| Account receivable | Sichuan Changhong Network Technology Co., Ltd. | 291,996.61 | |||
| Account receivable | Sichuan Changhong Electronic Products Co., Ltd. | 375,287.92 | |||
| Account receivable | Sichuan Changhong Mold Plastic Tech. Co., Ltd. | 193,981.98 | 162,163.72 | ||
| Account receivable | Sichuan Service Exp. Appliance Service Chain Co., Ltd. | 179,721.66 | 211,621.68 | ||
| Account receivable | Sichuan Changhong Device Technology Co., Ltd. | 327.80 | |||
| Account receivable | Sichuan Changhong International Hotel Co., Ltd. | 20,166.00 | |||
| Account receivable | Sichuan Changhong Minsheng Logistics Co., Ltd. | 12,173.16 | 41,163.13 | ||
| Account receivable | Guangdong Changhong Electronics Co., Ltd. | 3,507.01 | 224,817.29 | ||
| Account receivable | Sichuan Changhong Real Estate Co., Ltd. | 159,690.33 | |||
| Account receivable | Hefei Changhong Industrial Co., Ltd. | 50,000.00 | |||
| Account paid in advance | Sichuan Changhong Intelligent Manufacturing Technology Co., Ltd. | 2,191,049.27 | |||
| Account paid in advance | Sichuan Changhong Minsheng Logistics Co., Ltd. | 366,287.00 | 15,295.00 | ||
| Account paid in advance | Sichuan Zhiyijia Network Technology Co., Ltd. | 1,622.40 | |||
| Account paid in advance | Sichuan Changhong Mold Plastic Tech. Co., Ltd. | 16.80 | |||
| Account paid in advance | Sichuan Hongran Green Energy Co., Ltd. | 30,988.36 | |||
| Other receivable | Sichuan Changhong Electric Co., Ltd. | 2,657,173.57 | |||
| Other receivable | Sichuan Changhong Real Estate Co., Ltd. | 299,373.25 | 309,410.65 | ||
| Other receivable | Sichuan Service Exp. Appliance Service Chain Co., Ltd. | 200,000.00 | 500,000.00 | ||
| Other receivable | Hunan Grand-Pro Intelligent Tech. Company | 45,200.00 | |||
| Other receivable | Sichuan Changhong International Hotel Co., Ltd. | 39,550.00 | 27,589.45 | ||
| Other | 081 Electronic Group Co., Ltd. | 204,567.35 | |||
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020(Unless otherwise specified. RMB for record in the statement)
| Item Name | Related party | Balance at year-end | Balance at year-begin | ||
| Book balance | Bad debt provision | Book balance | Bad debt provision | ||
| receivable | |||||
| Other receivable | Hefei Changhong Industrial Co., Ltd. | 122,396.08 | |||
| Total | 403,544,357.88 | 3,943,524.26 | 615,824,765.02 | ||
2.Payable items
| Item Name | Related party | Balance at year-end | Balance at year-begin |
| Account payable | Sichuan Changhong Electric Co., Ltd. | 48,150,899.09 | 153,791,187.83 |
| Account payable | Sichuan Changhong Mold Plastic Tech. Co., Ltd. | 44,726,533.64 | 75,808,653.32 |
| Account payable | Sichuan Aichuang Science & Technology Co., Ltd. | 36,339,436.08 | 24,466,981.06 |
| Account payable | Sichuan Changhong Jijia Fine Co., Ltd. | 30,784,821.38 | 12,883,071.50 |
| Account payable | Changhong Huayi Compressor Co., Ltd. | 24,556,917.25 | 59,533,997.08 |
| Account payable | Sichuan Changhong Package Printing Co., Ltd. | 10,337,574.43 | 3,080,005.38 |
| Account payable | Mianyang Highly Electric Co., Ltd. | 10,035,029.02 | 9,379,903.10 |
| Account payable | Changhong Ruba Electric Company (Private) Ltd. | 8,938,947.95 | 20,520,728.81 |
| Account payable | Hefei Changhong Industrial Co., Ltd. | 6,434,535.69 | 1,729.50 |
| Account payable | Sichuan Ailian Science & Technology Co., Ltd. | 3,067,909.39 | 5,500,914.00 |
| Account payable | CHANGHONG (HK) TRADING LIMITED | 3,052,516.27 | 3,052,516.27 |
| Account payable | Sichuan Zhiyijia Network Technology Co., Ltd. | 2,979,349.71 | |
| Account payable | Sichuan Changhong Electronic Products Co., Ltd. | 2,388,369.91 | 2,097,100.40 |
| Account payable | Changhong International Holdings (Hong Kong) Co., Ltd. | 1,502,240.80 | 394,743.12 |
| Account payable | Sichuan Changhong Intelligent Manufacturing Technology Co., Ltd. | 962,930.89 | 15,962,820.73 |
| Account payable | Sichuan Changhong Precision Electronics Tech. Co., Ltd. | 877,946.47 | 1,443,759.01 |
| Account payable | Sichuan Changhong Minsheng Logistics Co., Ltd. | 863,688.97 | 210,699.13 |
| Account payable | Guangdong Changhong Electronics Co., Ltd. | 848,590.31 | 113,504.45 |
| Account payable | Hunan Grand-Pro Intelligent Tech. Company | 433,594.69 | 9,095,322.04 |
| Account payable | Sichuan Service Exp. Appliance Service Chain Co., Ltd. | 261,823.77 | 127,050.71 |
| Account payable | 081 Electronic Group Co., Ltd. | 136,168.13 | 86,951.38 |
| Account payable | Sichuan Changhong Jineng Sunshine | 52,743.33 | 20,076.99 |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020(Unless otherwise specified. RMB for record in the statement)
| Item Name | Related party | Balance at year-end | Balance at year-begin |
| Technology Co., Ltd. | |||
| Account payable | Sichuan Changhong International Travel Service Co., Ltd. | 50,552.00 | 167,858.10 |
| Account payable | Sichuan Changhong Electronics Holding Group Co., Ltd. | 6,687.52 | |
| Account payable | Sichuan Changhong New Energy Technology Co., Ltd. | 5,333.60 | 2,950.00 |
| Account payable | Sichuan Hongwei Technology Co., Ltd. | 3,225.71 | |
| Account payable | Sichuan Changhong Power Source Co., Ltd. | 1,870.82 | 1,870.82 |
| Account payable | Sichuan Hongyu Metal Manufacturing Co., Ltd. | 14,662.40 | |
| Account payable | Sichuan Hongxin Software Co., Ltd. | 340,000.00 | |
| Account payable | Sichuan Changhong Electronic System Co., Ltd. | 5,432.53 | |
| Account payable | Sichuan Jiahong Industrial Co., Ltd. | 14,764.05 | |
| Account payable | Sichuan Changhong Network Technology Co., Ltd. | 7,229.72 | |
| Account payable | Lejiayi Chain Management Co., Ltd. | 16,856.00 | |
| Account payable | Guangyuan Changhong Electronic Technology Co., Ltd. | 434,414.70 | |
| Account payable | Mianyang Science & Technology City Big Data Technology Co., Ltd. | 7,540.79 | |
| Account payable | Sichuan Changxin Refrigeration Parts Co., Ltd. | 692,843.70 | |
| Contract liability | Lejiayi Chain Management Co., Ltd. | 1,774,510.16 | 2,227.97 |
| Contract liability | Sichuan Changhong Electric Co., Ltd. | 750,203.12 | 997,132.81 |
| Contract liability | Hongyuan Ground Energy Heat Tech. Co., Ltd. | 108,490.57 | |
| Contract liability | Sichuan Service Exp. Appliance Service Chain Co., Ltd. | 12,736.12 | 15,364.13 |
| Contract liability | Sichuan Changhong Minsheng Logistics Co., Ltd. | 9,355.42 | |
| Contract liability | Sichuan Changhong Gerun Environmental Protection Tech. Co., Ltd. | 5,090.51 | 659,496.67 |
| Contract liability | Sichuan Changhong Electronics Holding Group Co., Ltd. | 5,080.00 | 5,080.00 |
| Contract liability | Hefei Changhong Industrial Co., Ltd. | 4,022.06 | 6,681.11 |
| Contract liability | Sichuan Changhong Real Estate Co., Ltd. | 2,154.65 | |
| Contract liability | CHANGHONG (HK) TRADING LIMITED | 945.91 | 1,011.34 |
| Contract liability | 081 Electronic Group Co., Ltd. | 25.55 | 25.55 |
| Contract liability | CHANGHONG ELECTRIC MIDDLE EAST FZCO | 627.86 | |
| Contract liability | Changhong Huayi Compressor Co., Ltd. | 66,037.73 | |
| Contract liability | Sichuan Zhiyijia Network Technology Co., Ltd. | 3,816,946.86 |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2020 to 31 December 2020(Unless otherwise specified. RMB for record in the statement)
| Item Name | Related party | Balance at year-end | Balance at year-begin |
| Other payable | Yuanxin Financial Lease Co., Ltd. | 44,276,743.76 | 1,315,045.86 |
| Other payable | Sichuan Changhong Minsheng Logistics Co., Ltd. | 75,964,081.82 | 520,500.00 |
| Other payable | Sichuan Changhong Intelligent Manufacturing Technology Co., Ltd. | 1,722,946.07 | 1,282,495.95 |
| Other payable | Sichuan Changhong Mold Plastic Tech. Co., Ltd. | 1,700,295.88 | 1,700,295.88 |
| Other payable | Changhong Huayi Compressor Co., Ltd. | 1,598,900.00 | 1,598,900.00 |
| Other payable | Sichuan Changhong Jineng Sunshine Technology Co., Ltd. | 500,000.00 | 553,165.00 |
| Other payable | Sichuan Changhong Jijia Fine Co., Ltd. | 400,500.00 | 400,500.00 |
| Other payable | Hunan Grand-Pro Intelligent Tech. Company | 250,000.00 | 250,000.00 |
| Other payable | Sichuan Changhong Electric Co., Ltd. | 163,469.22 | 5,861,224.39 |
| Other payable | Sichuan Changhong Package Printing Co., Ltd. | 50,000.00 | 50,000.00 |
| Other payable | 081 Electronic Group Co., Ltd. | 47,460.00 | |
| Other payable | Sichuan Changxin Refrigeration Parts Co., Ltd. | 46,702.03 | 46,702.03 |
| Other payable | Sichuan Zhiyijia Network Technology Co., Ltd. | 41,940.00 | 41,940.00 |
| Other payable | CHANGHONG (HK) TRADING LIMITED | 32,607.64 | 82,671.18 |
| Other payable | Sichuan Jiahong Industrial Co., Ltd. | 23,100.04 | 20,002.24 |
| Other payable | Sichuan Changhong Gerun Environmental Protection Tech. Co., Ltd. | 10,000.00 | 10,000.00 |
| Other payable | Sichuan Changhong Precision Electronics Tech. Co., Ltd. | 0.01 | 192,717.54 |
| Other payable | Mianyang Science & Technology City Big Data Technology Co., Ltd. | 113,450.00 | |
| Other payable | Sichuan Hongxin Software Co., Ltd. | 61,978.23 | |
| Total | 367,301,597.36 | 418,950,358.95 | |
(iv) Commitments from related parties: NilXII. Share-based payment: NilXIII. Contingency
1. Pending action or possible liabilities formed from arbitration: Nil
2. Contingency from external guarantee: Nil
3. Other contingency: Nil
XIV. Commitments: Nil
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020(Unless otherwise specified. RMB for record in the statement)
XV. Events occurring after the balance sheet date
1. Important non-adjustment items: Nil
2. Profit distribution:
For year of 2020, the individual statement of the parent company show net profit of 55,779,302.33Yuan, according to the auditing from ShinWing CPA (LLP). In accordance with relevant regulations,the retained profit at beginning of Current Year amounted as 945,907,861.41 Yuan, deducted the 2019profit distributed 52,229,894.05 Yuan and after extract for statutory surplus reserve 5,577,930.23 Yuan,the retained profit in individual statement of the parent company cumulative counted as943,879,339.46 Yuan at end of 2020. In addition, for year of 2020, the net profit attributable to ownersof parent company amounted as -85,565,716.91 Yuan. According to relevant regulations, theconsolidated statement covers and retained profit of 884,127,743.42 Yuan at the beginning of the year,after deducted the 2019 profit distribution of 52,229,894.05 Yuan and extract for statutory surplusreserves of 5,577,930.23 Yuan, the cumulative retained profit of the consolidated statement at end of2020 is 740,754,202.23 Yuan.
According to relevant regulations, the company's profit distribution shall be based on the profitavailable for distribution of the parent company, and shall comply with the principle of the lower ofthe profit available for distribution in the consolidated statement and the parent company statement.Therefore, the profit available for distribution in 2020 is the cumulative undistributed profit of740,754,202.23 yuan in the consolidated statement at the end of 2020.
According to relevant laws and regulations and the "Articles of Association", and comprehensivelyconsidering the interests of shareholders and the company's long-term development needs, it isproposed to:
The profit distribution plan for year of 2020 was: take the total shares (on the registration date whenimplement the equity distribution plan for year of 2020) after deduct the shares that have beenbough-back as the base, distributed 0.5 Yuan (tax included) bonus in cash for every 10-share hold byall shareholders, no share bonus issued and no capitalizing of common reserves carried out. Up to now,the actual number of shares available for profit distribution was 1,036,208,993 shares (total shares ofthe Company 1,044,597,881 deducted the 8,388,888 shares buy-back ), 51,810,449.65 Yuan cashdividend is expected to be paid.
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
In view of the fact that the Company is implementing share repurchases, the company will use thetotal share capital on the equity registration date when the profit distribution plan is implemented inthe future after the deduction of the total share capital after the company repurchases the shares in thespecial securities account as the base to adjust the total distribution amount based on the principle ofunchanged distribution ratio. The specific amount is subject to the actual distribution.
After this distribution, it is estimated that the remaining accumulated undistributed profit of the parentcompany will be 892,068,889.81 yuan, and the remaining undistributed profit will be carried forwardfor distribution in subsequent years.The above plan has been deliberated and approved at the 36th meeting of the ninthboard of directors of the company, and it is still to be approved by the shareholders'meeting.
3. Major sales return: Nil
4. Other than the above mentioned events, the Company have no other events occurred after balancesheet date.
XVI. Other significant matters
1. Correction of previous periods and influence: Nil
2. Debt restructuring: Nil
3. Assets replacement: Nil
4. Pension plan: Nil
5. Discontinuing operation: Nil
6. Branch information
In 10 thousand Yuan
| Item | Refrigerator, freezer Washing machine | Air-conditioner | Small home appliances | Other | Sales in branch | Total |
| Operation income | 908,906.53 | 507,367.20 | 126,152.43 | 31,507.23 | 35,128.37 | 1,538,805.02 |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020(Unless otherwise specified. RMB for record in the statement)
| Item | Refrigerator, freezer Washing machine | Air-conditioner | Small home appliances | Other | Sales in branch | Total |
| Including: foreign trade income | 899,640.15 | 506,690.97 | 121,855.45 | 10,618.45 | 1,538,805.02 | |
| Income from transactions between divisions | 9,266.38 | 676.23 | 4,296.98 | 20,888.78 | 35,128.37 | |
| Operation expenses | 916,477.77 | 531,648.15 | 123,457.98 | 27,993.41 | 35,043.84 | 1,564,533.47 |
| Operation profit | -7,571.24 | -24,280.95 | 2,694.45 | 3,513.82 | 84.53 | -25,728.45 |
| Total assets | 1,305,142.67 | 395,252.48 | 62,340.58 | 21,806.63 | 186,925.41 | 1,597,616.95 |
| Total liability | 819,298.58 | 281,329.21 | 48,890.31 | 10,587.77 | 47,037.38 | 1,113,068.49 |
| Supplementary information | ||||||
| Depreciation and amortization expenses | 21,221.54 | 14,111.68 | 500.98 | 585.67 | -471.84 | 36,891.71 |
| Capital expenditure | 7,299.81 | 11,374.79 | 60.44 | 244.99 | 11.33 | 18,968.70 |
| Non-cash expenses except for depreciation and amortization | 101,684.52 | 44,748.70 | 5,721.50 | 3,906.41 | -1,147.53 | 157,208.66 |
7. Other major transactions and events shows impact on investor‘s decision-making: NilXVII. Notes to main items of financial statement of parent company
1. Account receivable
(1) Presented according to the bad debt accrual method
| Category | Amount at year-end | ||||
| Book balance | Bad debt provision | Book value | |||
| Amount | Ratio | Amount | Ratio | ||
| Account receivable that withdrawal bad debt provision by single item | 858,063,066.45 | 83.09% | 3,370,366.42 | 0.39% | 854,692,700.03 |
| Including: Related party payments | 815,741,150.65 | 78.99% | 2,956,149.11 | 0.36% | 812,785,001.54 |
| Account receivable with letter of credit | 38,179,742.75 | 3.70% | 38,179,742.75 | ||
| Account receivable with single minor amount but withdrawal single item bad debt provision | 4,142,173.05 | 0.40% | 414,217.31 | 10.00% | 3,727,955.74 |
| Account receivable withdrawal bad debt provision by portfolio | 174,658,647.31 | 16.91% | 10,052,329.94 | 5.76% | 164,606,317.37 |
| Including: account receivable of engineering customers | 6,255,423.49 | 0.61% | 1,250,265.60 | 19.99% | 5,005,157.89 |
| Receivables other than engineering | 168,403,223.82 | 16.31% | 8,802,064.34 | 5.23% | 159,601,159.48 |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2020 to 31 December 2020(Unless otherwise specified. RMB for record in the statement)
| Category | Amount at year-end | ||||
| Book balance | Bad debt provision | Book value | |||
| Amount | Ratio | Amount | Ratio | ||
| customers | |||||
| Total | 1,032,721,713.76 | 100.00% | 13,422,696.36 | 1.30% | 1,019,299,017.40 |
(Continued)
| Category | Amount at year-begin | ||||
| Book balance | Bad debt provision | Book value | |||
| Amount | Ratio | Amount | Ratio | ||
| Account receivable that withdrawal bad debt provision by single item | 1,006,525,937.93 | 86.22% | 3,514,443.05 | 0.35% | 1,003,011,494.88 |
| Including: Related party payments | 965,981,524.72 | 82.75% | 965,981,524.72 | ||
| Account receivable with letter of credit | 37,029,970.16 | 3.17% | 37,029,970.16 | ||
| Account receivable with single minor amount but withdrawal single item bad debt provision | 3,514,443.05 | 0.30% | 3,514,443.05 | 100.00% | |
| Account receivable withdrawal bad debt provision by portfolio | 160,872,283.13 | 13.78% | 5,320,388.68 | 3.31% | 155,551,894.45 |
| Including: account receivable of engineering customers | 390,215.80 | 0.03% | 390,215.80 | ||
| Receivables other than engineering customers | 160,482,067.33 | 13.75% | 5,320,388.68 | 3.32% | 155,161,678.65 |
| Total | 1,167,398,221.06 | 100.00% | 8,834,831.73 | 0.76% | 1,158,563,389.33 |
1) Provision for bad debts of account receivable on an individual basis
Account receivable with single minor amount but withdrawal bad debt provision singly, refers to theminor single receivables, and withdrawal bad debt provision by combination shows no riskcharacteristic of the receivables, 2 clients involved.
2) Account receivable withdrawal bad debt provision by portfolio
A. Account receivable of engineering customers
| Account age | Balance at year-end | ||
| Book balance | Bad debt provision | Accrual ratio (%) | |
| Within 3 months (3 months included) | |||
| Over 3 months and within 6 months (6 months included) | |||
| Over 6 months and within one year (One year included) | 4,095.49 | ||
| Over one year - within 2 years (2 years included) | 6,251,328.00 | 1,250,265.60 | 20.00% |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2020 to 31 December 2020(Unless otherwise specified. RMB for record in the statement)
| Account age | Balance at year-end | ||
| Book balance | Bad debt provision | Accrual ratio (%) | |
| Over 2 years - within 3 years (3 years included) | 50.00% | ||
| Over 3 years | 100.00% | ||
| Total | 6,255,423.49 | 1,250,265.60 | |
B. Receivables other than engineering customers
| Account age | Balance at year-end | ||
| Book balance | Bad debt provision | Accrual ratio (%) | |
| Within 3 months (3 months included) | 146,638,852.73 | 1,466,388.53 | 1.00% |
| Over 3 months and within 6 months (6 months included) | 6,980,337.54 | 698,033.75 | 10.00% |
| Over 6 months and within one year (One year included) | 7,880,705.10 | 1,576,141.02 | 20.00% |
| Over one year - within 2 years (2 years included) | 1,860,195.93 | 930,097.97 | 50.00% |
| Over 2 years - within 3 years (3 years included) | 4,558,647.27 | 3,646,917.82 | 80.00% |
| Over 3 years | 484,485.25 | 484,485.25 | 100.00% |
| Total | 168,403,223.82 | 8,802,064.34 | |
(2) By account age
| Account age | Balance at year-end |
| Within 3 months (3 months included) | 900,770,506.85 |
| Over 3 months and within 6 months (6 months included) | 53,304,435.25 |
| Over 6 months and within one year (One year included) | 23,067,791.45 |
| Over one year - within 2 years (2 years included) | 40,563,920.65 |
| Over 2 years - within 3 years (3 years included) | 12,939,952.75 |
| Over 3 years | 2,075,106.81 |
| Total | 1,032,721,713.76 |
(3) Bad debt reserves of the account receivable
| Category | Balance at year-begin | Amount change in the year | Balance at year-end | ||
| Accrual | Collected or switch back | Resale or write-off | |||
| Bad debt provision | 8,834,831.73 | 7,826,457.13 | 3,238,592.50 | 13,422,696.36 | |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2020 to 31 December 2020(Unless otherwise specified. RMB for record in the statement)
| Category | Balance at year-begin | Amount change in the year | Balance at year-end | ||
| Accrual | Collected or switch back | Resale or write-off | |||
| Total | 8,834,831.73 | 7,826,457.13 | 3,238,592.50 | 13,422,696.36 | |
(4)Top 5 balance of account receivable aggregated by the debtor at end of the year amounted to 771,219,705.53 yuan,accounted for 74.68% of the receivables at balance of current year-end, the bad debt provision amounted as2,956,149.11 yuan.
(5)There are no receivables derecognized due to the transfer of financial assets.
(6)There are no receivables and the amount of assets and liabilities formed by continuedinvolvement
2.Other account receivable
| Item | Balance at year-end | Balance at year-begin |
| Interest receivable | 7,880,186.85 | |
| Dividend receivable | 661,434.48 | |
| Other account receivable | 49,093,918.57 | 33,423,018.09 |
| Total | 49,093,918.57 | 41,964,639.42 |
2.1 Interest receivable
(1) Category of interest receivable
| Item | Balance at year-end | Balance at year-begin |
| Interest receivable from time deposit | 7,880,186.85 | |
| Total | 7,880,186.85 |
(2) Major overdue interest: nil
2.2 Dividend receivable
(1) Category of dividend receivable
| Item | Balance at year-end | Balance at year-begin |
| Huishang Bank Corporation Limited | 661,434.48 |
(2) Major dividends receivable with account age over 1 year: N/A
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2020 to 31 December 2020
(Unless otherwise specified. RMB for record in the statement)
2.3 Other account receivable
(1) By nature
| Nature | Ending book balance | Opening book balance |
| Related party in consolidation statement | 3,521,237.00 | 4,126,498.15 |
| Related party not in consolidation statement | 200,000.00 | 500,000.00 |
| Loans of employee‘s pretty cash | 5,697,517.11 | 6,014,409.39 |
| Cash deposit | 6,507,745.28 | 1,010,000.00 |
| Export rebates | 32,281,664.19 | 21,650,454.61 |
| Other | 935,978.02 | 133,182.08 |
| Total | 49,144,141.60 | 33,434,544.23 |
(2) Provision for bad debt of other receivable
| Bad debt reserves | First stage | Second stage | Third stage | Total |
| Expected credit loss in next 12 months | Expected credit loss for the whole duration (no credit impairment) | Expected credit loss for the whole duration (credit impairment has occurred) | ||
| Balance as at 1st Jan. 2020 | 11,526.14 | 11,526.14 | ||
| Book balance of Other account receivable in Current Year as at 1 Jan. 2020 | — | — | — | — |
| --Transfer to the second stage | ||||
| --Transfer to the third stage | ||||
| --Reversal to the second stage | ||||
| --Reversal to the first stage | ||||
| Provision in Current Year | -11,303.11 | 50,000.00 | 38,696.89 | |
| Reversal in Current Year | ||||
| Conversion in Current Year | ||||
| Write off in Current Year | ||||
| Other change | ||||
| Balance as at 31st December 2020 | 223.03 | 50,000.00 | 50,223.03 |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2020 to 31 December 2020(Unless otherwise specified. RMB for record in the statement)
(3) By account age
| Account age | Balance at year-end |
| Within 3 months (3 months included) | 40,726,622.10 |
| Over 3 months and within 6 months (6 months included) | 1,907,662.89 |
| Over 6 months and within one year (One year included) | 713,384.67 |
| over one year-within two years (2 years included) | 1,260,700.00 |
| Over 2 years - within 3 years (3 years included) | 867,391.90 |
| Over 3 years | 3,668,380.04 |
| Total | 49,144,141.60 |
(3) Top 5 balance of other account receivable aggregated by the debtor at end of the year
| Name of the unit | Nature | Balance at year-end | Account age | Proportion of the total year-end balance of other receivable | Year-end balance of bad debt reserve |
| State Taxation Bureau of Hefei Economic and Technological Development Zone | Export rebates | 32,281,664.19 | Within 3 months | 65.69% | |
| Hefei Meiling Electrical Marketing Co., Ltd | Related party payments | 3,338,380.04 | 3 years and above | 6.79% | |
| Ding Lingli | Employee petty cash | 1,304,980.00 | Within 3 months | 2.66% | |
| Li Di | Employee petty cash | 517,862.93 | 2-3 years | 1.05% | |
| Liu Guilong | Employee petty cash | 510,000.00 | 6-12 months | 1.04% | |
| Total | — | 37,952,887.16 | — | 77.23% |
(4) There are no receivables involving government subsidies
(5)There are no other receivables derecognized due to the transfer of financial assets.
(6) There are no other receivables and the amount of assets and liabilities formed by continuedinvolvement
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020(Unless otherwise specified. RMB for record in the statement)
3. Long-term equity investments
(1) Classification of long-term equity investments
| Item | Balance at year-end | Balance at year-begin | ||||
| Book balance | Impairment loss | Book value | Book balance | Impairment loss | Book value | |
| Investment in subsidiaries: | ||||||
| Zhongke Meiling Cryogenic Technology Co., Ltd. | 42,652,000.00 | 42,652,000.00 | 42,652,000.00 | 42,652,000.00 | ||
| Mianyang Meiling Refrigeration Co., Ltd. | 95,000,000.00 | 95,000,000.00 | 95,000,000.00 | 95,000,000.00 | ||
| Hefei Meiling Electrical Marketing Co., Ltd | 54,900,000.00 | 54,900,000.00 | 54,900,000.00 | 54,900,000.00 | ||
| Zhongshan Changhong Electric Co., Ltd. | 304,856,419.37 | 304,856,419.37 | 169,856,419.37 | 169,856,419.37 | ||
| Sichuan Changhong Air-conditioner Co., Ltd. | 955,600,437.79 | 955,600,437.79 | 955,600,437.79 | 955,600,437.79 | ||
| Hefei Meiling Group Holdings Limited | 113,630,000.00 | 113,630,000.00 | 113,630,000.00 | 113,630,000.00 | ||
| Jiangxi Meiling Electric Appliance Co., Ltd. | 79,000,000.00 | 79,000,000.00 | 79,000,000.00 | 79,000,000.00 | ||
| Changhong Meiling Ridian Technology Co., Ltd. | 91,082,111.12 | 91,082,111.12 | 90,802,061.95 | 90,802,061.95 | ||
| Meiling CANDY Washing Machine Co., Ltd. | 60,000,000.00 | 27,675,208.01 | 32,324,791.99 | 60,000,000.00 | 25,082,892.26 | 34,917,107.74 |
| Hefei Meiling Wulian Technology Co., Ltd. | 6,000,000.00 | 6,000,000.00 | 6,000,000.00 | 6,000,000.00 | ||
| CH-Meiling.International (Philippines) Inc. | 6,889,100.00 | 6,889,100.00 | ||||
| Changmei Technology Co., Ltd. | 48,128,000.00 | 48,128,000.00 | ||||
| Investment in associates: | ||||||
| Hefei Xingmei Assets Management | 6,826,274.99 | 6,826,274.99 | 8,554,613.73 | 8,554,613.73 | ||
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020(Unless otherwise specified. RMB for record in the statement)
| Item | Balance at year-end | Balance at year-begin | ||||
| Book balance | Impairment loss | Book value | Book balance | Impairment loss | Book value | |
| Co., Ltd. | ||||||
| Sichuan Zhiyijia Network Technology Co., Ltd. | 45,354,700.69 | 45,354,700.69 | 47,831,474.41 | 47,831,474.41 | ||
| Total | 1,861,791,043.96 | 27,675,208.01 | 1,834,115,835.95 | 1,771,955,007.25 | 73,210,892.26 | 1,698,744,114.99 |
(2) Investment in subsidiaries
| Invested enterprise | Balance at year-begin | Increased in Current Year | Decreased in Current Year | Balance at year-end | Provision for impairment losses in the Year | Ending balance of impairment |
| Zhongke Meiling Cryogenic Technology Co., Ltd. | 42,652,000.00 | 42,652,000.00 | ||||
| Mianyang Meiling Refrigeration Co., Ltd. | 95,000,000.00 | 95,000,000.00 | ||||
| Hefei Meiling Electrical Marketing Co., Ltd | 54,900,000.00 | 54,900,000.00 | ||||
| Zhongshan Changhong Electric Co., Ltd. | 169,856,419.37 | 135,000,000.00 | 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., Ltd. | 90,802,061.95 | 280,049.17 | 91,082,111.12 | |||
| Changmei Technology Co., Ltd. | 48,128,000.00 | 48,128,000.00 | ||||
| Meiling CANDY Washing Machine Co., Ltd. | 60,000,000.00 | 60,000,000.00 | 2,592,315.75 | 27,675,208.01 | ||
| Hefei Meiling Wulian Technology Co., Ltd. | 6,000,000.00 | 6,000,000.00 | ||||
| CH-Meiling.International (Philippines) Inc. | 6,889,100.00 | 6,889,100.00 |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2020 to 31 December 2020(Unless otherwise specified. RMB for record in the statement)
| Invested enterprise | Balance at year-begin | Increased in Current Year | Decreased in Current Year | Balance at year-end | Provision for impairment losses in the Year | Ending balance of impairment |
| Total | 1,715,568,919.11 | 142,169,149.17 | 48,128,000.00 | 1,809,610,068.28 | 2,592,315.75 | 27,675,208.01 |
(3) Investment in associates
| Invested enterprise | Balance at year-begin | Changes in Current Year | Balance at year-end | Ending balance of impairment | |||||||
| Additional Investment | Negative Investment | Investment income recognized under equity | Adjustment for other comprehensive income | Other equity change | Cash dividend or profit announced to issued | Provision for impairment loss | Other | ||||
| Hefei Xingmei Assets Management Co., Ltd. | 8,554,613.73 | -1,728,338.74 | 6,826,274.99 | ||||||||
| Sichuan Zhiyijia Network Technology Co., Ltd. | 47,831,474.41 | 4,173,014.25 | 6,649,787.97 | 45,354,700.69 | |||||||
| Total | 56,386,088.14 | 2,444,675.51 | 6,649,787.97 | 52,180,975.68 | |||||||
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2020 to 31 December 2020(Unless otherwise specified. RMB for record in the statement)
4.Operation income, operation cost
(1) Operation income and operation cost
| Item | Current Year | Last Year | ||
| Income | Cost | Income | Cost | |
| Main business | 5,993,841,897.34 | 5,587,709,737.76 | 7,369,698,197.38 | 6,536,718,301.95 |
| Other business | 2,039,108,063.73 | 1,988,342,535.09 | 1,926,750,045.91 | 1,900,843,201.15 |
| Total | 8,032,949,961.07 | 7,576,052,272.85 | 9,296,448,243.29 | 8,437,561,503.10 |
(1) Main business - Classified according to product
| Product | Current Year | Last Year | ||
| Operation income | Operation cost | Operation income | Operation cost | |
| Refrigerator, freezer | 5,484,841,178.48 | 5,093,379,851.08 | 6,827,193,557.28 | 6,050,370,840.17 |
| Washing machine | 328,707,340.67 | 331,857,408.29 | 123,468,405.74 | 116,909,031.46 |
| Small household appliances and kitchen and bathroom | 178,264,898.56 | 160,500,034.70 | 417,258,605.04 | 368,071,858.55 |
| Other | 2,028,479.63 | 1,972,443.69 | 1,777,629.32 | 1,366,571.77 |
| Total | 5,993,841,897.34 | 5,587,709,737.76 | 7,369,698,197.38 | 6,536,718,301.95 |
(2) Main business - Classified according to region
| Region | Current Year | Last Year | ||
| Operation income | Operation cost | Operation income | Operation cost | |
| Domestic | 3,092,637,436.35 | 3,165,520,459.49 | 5,194,282,583.68 | 4,678,505,490.95 |
| Overseas | 2,901,204,460.99 | 2,422,189,278.27 | 2,175,415,613.70 | 1,858,212,811.00 |
| Total | 5,993,841,897.34 | 5,587,709,737.76 | 7,369,698,197.38 | 6,536,718,301.95 |
Top five clients in sales revenue amounted as RMB 3,617,118,513.26, a 45.03% in total operation income.
5. Investment income
| Item | Current Year | Last Year |
| Long-term equity investment income by equity method | 2,444,675.51 | 74,962.32 |
| Investment income obtained from disposal of tradable financial assets | 47,311,415.04 | -25,456,976.70 |
| Income from financial products | 7,845,151.69 | 53,507,866.92 |
| Long-term equity investment income by cost method | 69,912,000.00 | 4,590,000.00 |
| Investment income of other non-current financial assets during holding period | 27,218,378.81 | 661,434.48 |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2020 to 31 December 2020(Unless otherwise specified. RMB for record in the statement)
| Item | Current Year | Last Year |
| Total | 154,731,621.05 | 33,377,287.02 |
6. Other
XVIII. Approval of financial statementThe financial statement has already been approved from the board of directors of the Company forreporting dated 31 March 2021.
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2020 to 31 December 2020(Unless otherwise specified. RMB for record in the statement)
Supplementary information for financial statement
1. Non-recurring gains and losses for this year
| Item | Current Year | Note |
| Gains and losses from disposal of non-current assets | -2,111,295.55 | |
| Governmental subsidy reckoned into current gains/losses (not including the subsidy enjoyed in quota or ration according to national standards, which are closely relevant to enterprise‘s business) | 99,043,859.77 | |
| Losses/gains from changes of fair values occurred in holding trading financial assets and trading financial liabilities, and investment income obtaining from the disposal of trading financial assets, trading financial liability and financial assets available-for-sale, excluded effective hedging business relevant with normal operations of the Company | 123,242,542.42 | |
| Reversal of the account receivable depreciation reserves subject to separate impairment test | 5,061,635.85 | |
| Other non-operating income and expenses other than the above | 2,434,283.11 | |
| Subtotal | 227,671,025.60 | |
| Less: impact on income tax | 34,083,593.36 | |
| Impact on minority shareholders‘ equity (post-tax) | 1,337,093.24 | |
| Total | 192,250,339.00 | — |
2. Return on equity and earnings per share
| Profit during the report period | Weighted average return on equity | Earnings per share/EPS (RMB/Share) | |
| Basic EPS | Diluted EPS | ||
| Net profit attributable to ordinary shareholders of the parent company | -1.73% | -0.0819 | -0.0819 |
| Net profit attributable to ordinary shareholders of the parent company after deduction of the non-recurring gains/losses | -5.63% | -0.2660 | -0.2660 |
Section XIII. Documents available for Reference
I. Financial statement carrying the signatures and seals of the Chairman, principal of the accounting works andperson in charge of accounting organ;II. Original auditing report carrying the seal of CPA and autography and seal of the accountants;III. Original documents of the Company and manuscripts of public notices that disclosed in the website designatedby CSRC in the report period;The aforesaid documents are all available at headquarter of the Company. The Company would provide themtimely when CSRC and Shenzhen Stock Exchange require or the shareholders need consultation according to theregulations and Articles of Association.
Chairman: Wu DinggangChanghong Meiling Co., Ltd.
31 March 2021