Stock code: 000521, 200521 Notice No.: 2021-083short form of the stock:Changhong Meiling, Hongmeiling B
CHANGHONG MEILING CO., LTD.THE THIRD QUARTERLY REPORT FOR 2021
The Company and whole members of the BOD guarantee that the information disclosed is true,accurate and complete, and there are no any fictitious records, misleading statements or importantomissions.
Important content reminder:
1. Board of Directors, Supervisory Committee, all directors, supervisors and senior executives ofChanghong Meiling Co., Ltd. (hereinafter referred to as the Company) hereby confirm that there areno any fictitious statements, misleading statements, or important omissions carried in this report,and shall take all responsibilities, individual and/or joint, for the reality, accuracy and completion ofthe whole contents.
2. Principal of the Company, Person in Charge of Accounting Works and Person in Charge ofAccounting Organ (Accounting Officer) hereby confirm that the Financial Report of the ThirdQuarterly Report is authentic, accurate and complete.
3. Whether the Third Quarterly Report has been audited or not
□Yes √No
I. Main financial data(i) Main accounting data and financial indexesWhether it has retroactive adjustment or re-statement on previous accounting data or not
□Yes √No
| Current period | Increase/decrease in the period compared with the same period of the previous year | Year-begin to period-end | Increase/decrease from year-begin to period-end compared with the same period of the previous year | |
| Operating income (Yuan) | 4,312,251,172.73 | -5.45% | 13,915,010,518.02 | 22.53% |
| Net profit attributable to shareholders of the listed company (Yuan) | 25,102,342.76 | -71.01% | 62,259,854.30 | 150.39% |
| Net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses (Yuan) | -1,016,633.94 | -106.23% | -64,569,048.95 | 73.19% |
| Net cash flow arising from operating activities (Yuan) | —— | —— | -184,729,360.39 | 33.70% |
| Basic earnings per share (Yuan /Share) | 0.0240 | -71.05% | 0.0596 | 150.38% |
| Diluted earnings per share (Yuan /Share) | 0.0240 | -71.05% | 0.0596 | 150.38% |
| Weighted average ROE | 0.52% | A decrease of 1.29 percentage points | 1.28% | An increase of 3.79 percentage points |
| End of current period | End of previous year | Increase/decrease at the period-end compared with the end of the previous year | ||
| Total assets (Yuan) | 15,691,792,207.14 | 16,103,355,454.46 | -2.56% | |
| Net assets attributable to shareholder of listed company (Yuan) | 4,857,058,554.70 | 4,854,173,682.43 | 0.06% | |
(ii) Items and amounts of non-recurring profit (gains)/losses
√ Applicable □ Not applicable
Unit: Yuan
| Item | Amount for the period | Amount from year-begin to period-end | Note |
| Gains/losses from the disposal of non-current asset (including the write-off that accrued for impairment of assets) | -17,846.58 | -754,429.92 | See "Proceeds from Asset Disposal" and "Non-operating Income/Expense" for |
| details. | |||
| Government subsidy recorded in current gains/losses (except those closely related to the Company’s normal operation, and those continuously enjoyed on a fixed or quantitative basis with certain standards in accordance with national policy regulations) | 23,226,869.48 | 77,928,969.24 | See "Other Earnings" for details. |
| 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 and trading financial liability, excluded effective hedging business relevant with normal operations of the Company | 7,186,220.84 | 66,036,083.22 | See "Fair value Change income" and "Investment Income" for details. |
| Reversal of the account receivable depreciation reserves subject to separate impairment test | 159,777.85 | 1,388,389.10 | See "Accounts Receivable" for details. |
| Other non-operating income and expenses other than the above | 999,112.79 | 6,628,445.32 | See "Non-operating Income" and "Non-operating Expenses" for details. |
| Less: impact on income tax | 4,341,036.56 | 21,986,708.18 | |
| Impact on minority shareholders’ equity (post-tax) | 1,094,121.12 | 2,411,845.53 | |
| Total | 26,118,976.70 | 126,828,903.25 | -- |
Other gain/loss items that qualified the definition of non-recurring profit (gains)/losses:
□ Applicable √ Not applicable
The Company does not have other gain/loss items that qualified the definition of non-recurring profit(gains)/lossesExplanation on those non-recurring gain/loss listed in the “Q&A Announcement No.1 on Information Disclosurefor Companies Offering Their Securities to the Public --- Extraordinary Profit/loss” defined as recurring gain/loss
□ Applicable √ Not applicable
The Company does not have the non-recurring gain/loss listed in the “Q&A Announcement No.1 on InformationDisclosure for Companies Offering Their Securities to the Public --- Extraordinary Profit/loss” defined asrecurring gain/loss
(iii) Particulars about changes in items of main accounting data and financial index andexplanations of reasons
√ Applicable □Not applicable
1. Changes and reasons of items in balance sheet
Unit: Yuan
| Item | Ending balance | Balance at last Year | Changes ratio | Reasons of changes |
| Trading financial assets | 395,666,180.17 | 47,242,339.07 | 737.52% | Mainly due to the financial products purchased by the Company in current period. |
| Notes receivable | 159,935,906.44 | 340,421,386.71 | -53.02% | Mainly due to the notes receivable due for remittance in the current period. |
| Account receivable | 2,031,949,829.74 | 1,130,275,780.66 | 79.77% | Mainly due to the growth of operation revenue in the current period |
| Account paid in advance | 64,863,143.78 | 30,105,373.40 | 115.45% | Mainly due to the prepayment of purchases increased in the current period. |
| Other current assets | 74,584,938.18 | 198,353,464.98 | -62.40% | Mainly due to the VAT retained tax refund. |
| Long-term equity investment | 53,836,406.41 | 76,982,822.38 | -30.07% | Mainly due to the investment losses from joint ventures and associates in the current period. |
| Construction in progress | 81,634,715.75 | 60,775,088.96 | 34.32% | Mainly due to the engineering inputs increased in the current period. |
| Right-of-use asset | 33,033,246.07 | - | - | Mainly due to the implementation of new leasing standards in the current period |
| Short-term loan | 886,293,630.28 | 1,336,209,050.55 | -33.67% | Mainly due to the repayment of short-term borrowings. |
| Trading financial liabilities | 2,318,206.64 | 4,584,076.51 | -49.43% | Mainly due to the changes in fair value of forward foreign exchange contracts in the current period. |
| Employee compensation payable | 173,386,003.30 | 290,321,776.05 | -40.28% | Mainly due to the payment of employee remuneration in the current period. |
| Lease liability | 22,352,167.76 | - | - | Mainly due to the implementation of new leasing standards in the current period. |
| Accrual liabilities | 15,160,400.14 | 62,392,735.07 | -75.70% | Mainly due to the write-off of the accrual liabilities in the current period. |
| Deferred income tax liability | 5,738,912.89 | 10,575,582.33 | -45.73% | Mainly due to the reversal of deferred income tax liability in the current period. |
| Treasury stock | 17,324,792.23 | 9,929,336.18 | 74.48% | Mainly due to the repurchase of B-share in the current period. |
| Minority interests | 147,051,252.93 | 107,921,283.49 | 36.26% | Mainly due to the earnings increased from some non-wholly owned subsidiaries in the current period. |
2. Changes and reasons of items in profit statement
Unit: Yuan
| Item | Amount at the period | Amount at the same period of previous year | Changes ratio | Reasons of changes |
| Financial expenses | -35,552,769.58 | -1,509,899.93 | -2254.64% | Mainly the current period of the company exchange earnings, exchange losses caused by the same period last year. |
| Investment income | 80,853,371.21 | 47,154,706.68 | 71.46% | Mainly due to the forward foreign exchange contract delivery gains increased on a y-o-y basis in the current period. |
| Income from fair value changes | -28,310,289.03 | 17,956,801.15 | -257.66% | Mainly due to the changes in fair value of forward foreign exchange contracts in the current period. |
| Credit impairment loss | -21,358,115.43 | -33,008,077.62 | -35.29% | Mainly due to the y-o-y decrease in impairment loss on receivable. |
| Asset impairment loss | -46,558,863.61 | -34,714,276.42 | 34.12% | The company's main current accounts receivable impairment loss caused by the year-on-year reduction. |
| Income from assets disposal | -249,004.26 | -542,955.36 | 54.14% | Mainly due to the y-o-y declined of losses from assets disposal in the current period. |
| Non-operating income | 8,126,104.09 | 5,072,408.44 | 60.20% | Mainly is the current period of the company's long-term liquidation caused by. |
| Non-operation expenditure | 2,003,084.43 | 1,206,761.93 | 65.99% | The main department of this period of the company's assets scrapped loss caused by. |
| Income tax expenses | 29,394,642.88 | 1,746,437.69 | 1583.12% | Mainly due to the increase in income tax expenses due to the growth of taxable income. |
| Gains/losses of minority shareholders | 25,630,675.63 | -2,151,849.18 | 1291.10% | Mainly due to the earnings increased on a y-o-y basis from some non-wholly owned subsidiaries in the current period. |
3. Changes and reasons of items in cash flow statement
Unit: Yuan
| Item | Amount at the period | Amount at the same period of previous year | Changes ratio | Reasons of changes |
| Cash received from selling commodities and providing labor services | 13,404,052,674.38 | 10,004,693,970.59 | 33.98% | Mainly due to the cash received from commodity selling and providing labor services increased on a y-o-y basis. |
| Write-back of tax received | 561,963,582.97 | 412,733,445.22 | 36.16% | The main department of the current period of the company received value-added tax left against the tax refund caused by. |
| Cash paid for purchasing commodities and receiving labor service | 12,095,383,651.27 | 8,837,934,853.44 | 36.86% | Mainly because the cash paid for raw materials increased on a y-o-y basis. |
| Cash received from recovering investment | 1,420,000,000.00 | 737,460,000.00 | 92.55% | Mainly because the financial products are due for collection in the current period. |
| Cash received from investment income | 23,968,192.46 | 42,570,007.43 | -43.70% | Mainly because received a dividends from Hongyun Fund Investment in the same period of last year, while there was no such item occurred in current period. |
| Net cash received from disposal of fixed, intangible and other long-term assets | 1,290,668.56 | 381,041.58 | 238.72% | Mainly the disposal of fixed assets of the company in the current period of cash received by the year-on-year increase. |
| Cash paid for purchasing fixed, intangible and other long-term assets | 187,456,291.30 | 296,007,313.74 | -36.67% | Mainly because purchase and construction of intangible assets from subsidiary Changhong Air-conditioning declined from a year earlier. |
| Other cash paid concerning investing | 58,411.60 | - | - | Mainly due to the new foreign exchange contract delivery losses |
| activities | from subsidiary Zhongke Meiling. | |||
| Cash received from absorbing investment | 15,000,000.00 | - | - | Mainly due to the new absorbed investment from minority shareholders by subsidiary Life Electric. |
| Other cash received concerning financing activities | 5,986,105.14 | - | - | Mainly due to the bill discounting from subsidiary Changhong Air-conditioning. |
| Other cash paid concerning financing activities | 15,403,414.62 | 2,432,566.62 | 533.22% | Mainly due to the cash paid for B-share repurchase and payment of the principal & interest on lease liabilities. |
| IV. Influence on cash and cash equivalents due to fluctuation in exchange rate | 24,846,222.17 | -18,563,610.41 | 233.84% | Mainly due to the effect of changes in exchange rate. |
II. Shareholders Information(i) Total number of common shareholders and preference shareholders with voting rightsrecovered and top ten common shareholders
Unit: Share
| Total common shareholders at end of the Period | 67,605 | Total preference shareholders with voting rights recovered at end of reporting period (if applicable) | 0 | |||||
| Top ten shareholders | ||||||||
| Shareholder’s name | Nature of shareholder | Proportion of shares held | Amount of shares held | Amount of restricted shares held | Information of shares pledged, tagged or frozen | |||
| State of share | Amount | |||||||
| Sichuan Changhong Electric Co., Ltd. | State-owned legal person | 23.79% | 248,457,724 | 0 | - | -- | ||
| Hefei Industrial Investment Holding (Group) Co., Ltd. | State-owned legal person | 4.58% | 47,823,401 | 0 | - | - | ||
| CHANGHONG (HK) TRADING LIMITED | Foreign legal person | 2.59% | 27,077,797 | 0 | - | - | ||
| CAOSHENGCHUN | Foreign natural person | 1.41% | 14,766,086 | 0 | - | - | ||||
| Ma Guobin | Domestic natural person | 1.34% | 14,010,900 | 0 | - | - | ||||
| 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 | - | - | ||||
| Phillip Securities (Hong Kong) Limited | Foreign legal person | 0.60% | 6,296,913 | 0 | - | - | ||||
| Societe Generale | Foreign legal person | 0.50% | 5,186,843 | 0 | - | - | ||||
| Wang Yumei | Domestic natural person | 0.45% | 4,717,700 | 0 | - | - | ||||
| Chen Qin | Domestic natural person | 0.39% | 4,091,288 | 0 | - | - | ||||
| Particular about top ten shareholders with un-restrict shares held | ||||||||||
| Shareholders’ name | Amount of unrestricted shares held | Type of shares | ||||||||
| Type | Amount | |||||||||
| Sichuan Changhong Electric Co., Ltd. | 248,457,724 | RMB ordinary shares | 248,457,724 | |||||||
| Hefei Industrial 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 | |||||||
| CAOSHENGCHUN | 14,766,086 | Domestically listed foreign shares | 14,766,086 | |||||||
| Ma Guobin | 14,010,900 | RMB ordinary shares | 14,010,900 | |||||||
| Caitong Fund- Ningbo Bank-Haitong Xingtai (Anhui) Emerging Industry Investment Fund (Limited Partnership) | 10,733,452 | RMB ordinary shares | 10,733,452 | |||||||
| Phillip Securities (Hong Kong) Limited | 6,296,913 | Domestically listed foreign shares | 6,296,913 | |||||||
| Societe Generale | 5,186,843 | RMB ordinary shares | 5,186,843 | |||||||
| Wang Yumei | 4,717,700 | RMB ordinary shares | 4,717,700 | |||||||
| Chen Qin | 4,091,288 | RMB ordinary shares | 4,091,288 | |||||||
| Explanation on associated relationship or consistent actors 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 7 shareholders （Excluding Phillip Securities (Hong Kong) Co., Ltd.）; “Caitong Fund- Ningbo Bank-Haitong Xingtai (Anhui) Emerging Industry Investment Fund (Limited Partnership)” refers to the products of Caitong Fund Management Company subscribe for privately placement of 2016; The company neither knows whether there is any association among other shareholders, nor knows whether other shareholders belong to the persons acting in concert that is stipulated in the “Administrative Measures on Information Disclosure of Changes in Shareholding of Listed Companies”. | |
| Explanation on top ten common shareholders involving margin business (if applicable) | As of 30th September 2021, among the top 10 common shareholders, Ma Guobin holds 10,976,700 shares of the Company through customer credit trading secured account of Founder Securities Co., Ltd., and 3,034,200 shares hold through common securities account, thus 14,010,900 shares of the Company are held in total. |
(ii) Total shareholders with preferred stock held and shares held by top ten shareholders withpreferred stock held
□ Applicable √ Not applicable
III. Other significant events
√ Applicable □Not applicable
| Overview | Date for disclosure | Information index for temporary report disclosure |
| After review and approval by the resolution of the BOD, BOS and General meeting of shareholders, it was agreed that the company would use the idle raised funds with 120 million yuan at most (the quota can be used on a rolling basis) to invest in the high-security, good-liquidity and capital-guaranteed financial products with maturity within one year. | March 3, 2021 April 29, 2021 | Juchao Website: http://www.cninfo.com.cn (No. 2021-008, No. 2021-009, No. 2021-010 and No. 2021-034) |
| After review and approval by the resolution of the BOD, it was agreed that the subordinate controlling subsidiary Zhongke Meiling Cryogenic Technology Co., Ltd. to newly established a wholly-owned subsidiary- Anhui Ling’an Medical Devices Co., Ltd. with 10 million yuan. | March 3, 2021 | Juchao Website: http://www.cninfo.com.cn (No. 2021-008) |
| After review and approval by the resolution of the BOD, BOS and General meeting of shareholders, it was agreed that the Company provide a credit guarantee line (not exceeding 350 million yuan) | March 3, 2021 April 29, 2021 | Juchao Website: http://www.cninfo.com.cn (No. 2021-008, No. 2021-009, |
| with a period of one year to its subordinate controlling subsidiary Hefei Changhong Meiling Life Electric Co., Ltd.. | No. 2021-011 and No. 2021-034) | |
| After review and approval by the resolution of the BOD, it was agreed to performing technical renovations on the production line of Hefei Base Refrigerator (cabinet) with 24.4276 million yuan, achieving the cost reduction and efficiency gains to reduce manufacturing costs and further enhance the market competitiveness of the company’s products. | March 3, 2021 | Juchao Website: http://www.cninfo.com.cn (No. 2021-008) |
| After review and approval by the resolution of the BOD and General meeting of shareholders, it was agreed that the Company and its subordinate subsidiaries carry out the forward foreign exchange funds trading business between 1 July 2021 and 30 June 2022. The balance of trading shall not exceed US$ 720 million (mainly including: USD, AUD and EUR, all other foreign currencies are converted to USD), the maximum settlement period of a single transaction shall not exceed one year. | March 3, 2021 April 29, 2021 | Juchao Website: http://www.cninfo.com.cn (No. 2021-013, No. 2021-019 and No. 2021-034) |
| After review and approval by the resolution of the BOD and General meeting of shareholders, it was agreed that the Company to formulated the “Shareholder Return Plan for the Next Three Years (2021-2023)”. | March 31, 2021 April 29, 2021 | Juchao Website: http://www.cninfo.com.cn (No. 2021-013, and No. 2021-034) |
| After review and approval by the resolution of the BOD and General meeting of shareholders, it was agreed that the subordinate subsidiary of the company- Zhongshan Changhong to write-off a bad debt of 1,657,332.46 yuan in total, which was really beyond collection. | March 31, 2021 April 29, 2021 | Juchao Website: http://www.cninfo.com.cn (No. 2021-013, No. 2021-020 and No. 2021-034) |
| After review and approval by the resolution of the BOD, agreed to appoint Mr. Tang Youdao as the Vice President of the Company, his office term will same as the term as the current BOD. | March 31, 2021 | Juchao Website: http://www.cninfo.com.cn (No. 2021-013) |
| After review and approval by the resolution of the BOD, BOS and General meeting of shareholders, it was agreed that controlling subsidiary - Zhongke Meiling Cryogenic Technology Co., Ltd. to provide 60 million yuan credit guarantee line to its wholly-own subsidiary- Anhui Tuoxing Technology Co., Ltd with guarantee period of one year. | March 31, 2021 April 29, 2021 | Juchao Website: http://www.cninfo.com.cn (No. 2021-013, No. 2021-014, No. 2021-021 and No. 2021-034) |
| After review and approval by the resolution of the BOD and General meeting of shareholders, it was agreed that the company and its subsidiaries to applying for a special credit line for the note pool from the follow institutions as: up to 300 million yuan | March 31, 2021 April 29, 2021 | Juchao Website: http://www.cninfo.com.cn (No. 2021-013, No. 2021-022 and No. 2021-034) |
| from Hefei Branch of Industrial Bank Co., ltd, up to 300 million yuan from Hefei Branch of Ping An Bank Co., ltd, up to 300 million yuan from Hefei Economic Development Zone Branch of Huishang Bank Co., Ltd., up to 300 million yuan from Hefei Branch of China Merchants Bank and up to 50 million yuan from Hefei Branch of CITIC Bank. | ||
| After review and approval by the resolution of the BOD and General meeting of shareholders, agreed to re-appoints Shine Wing Certified Public Accountants (LLP) as the audit institution of the annual financial report 2021 and internal control of the Company with one year period. At the same time, to request the shareholders’ general meeting to authorize management of the Company to determine its annual audit remuneration, according to the industry standards and actual audit works of the company. | March 31, 2021 April 29, 2021 | Juchao Website: http://www.cninfo.com.cn (No. 2021-013, No. 2021-017 and No. 2021-034) |
| Former securities affairs representative and staff supervisor Mr. Zhu Wenjie, apply to resign as the staff supervisor of 10th BOS and securities affairs representative due to personal reasons. To ensure that the structure of the BOS conforms to the relevant legal requirements, the staff congress held on 30 March 2021, after voting by the staff representative, agreed to elected Ms. Sun Hongying as the staff supervisor of the 10th BOS, term of office shall commence from the date of deliberation and approved by Staff Congress to the date of expiration of the 10th BOS. | March 31, 2021 | Juchao Website: http://www.cninfo.com.cn (No. 2021-023) |
| After review and approval by the resolution of the BOD and BOS, it was agreed that the Company should implement the new leasing standards and change the related accounting policy according to the relevant regulations and requirements of the Ministry of Finance. | April 20, 2021 | Juchao Website: http://www.cninfo.com.cn (No. 2021-028, No. 2021-029 and No. 2021-030) |
| After review and approval by the resolution of the BOD, BOS and General meeting of shareholders, agreed that the company terminates the use of the raised funds to purchase underlying assets of the sub-project "intelligent research and development management platform construction" of the "intelligent research and development ability building and intelligent home appliance technology development project" from Sichuan Changhong Electric Co., Ltd. and its subsidiaries and the related transactions. | April 20, 2021 June 17, 2021 | Juchao Website: http://www.cninfo.com.cn (No. 2021-028, No. 2021-029, No. 2021-031 and No. 2021-046) |
| After review and approval by the resolution of the BOD, agreed that the company's wholly-owned subsidiary Hefei Meiling | May 27, 2021 | Juchao Website: http://www.cninfo.com.cn |
| Wulian Technology Co., Ltd to invests 37.69 million yuan in building industrial internet service capacity to further expand informatization and digital business and service capacity, and build a comprehensive capability of new business type integrating "manufacturing + service" businesses. | (No. 2021-038) | |
| After review and approval by the resolution of the BOD, agreed that the company and its subsidiaries apply to Bank of Jiujiang , Hefei Branch for a special credit line of up to 400 million yuan of bill pool, the credit period is one year, the types of credit are mainly used for the special business of bill pool, and endorsement for pledge is adopted. | May 27, 2021 | Juchao Website: http://www.cninfo.com.cn (No. 2021-038 and No. 2021-039) |
| After deliberated by the BOD and BOS and review and approval by the General meeting of shareholders, agreed to purchase the liability insurance for the Company and all directors, supervisors and senior executives. | July 13, 2021 July 29, 2021 | Juchao Website: http://www.cninfo.com.cn (No. 2021-050, No. 2021-051, No. 2021-052 and No. 2021-058) |
| After review and approval by the resolution of the BOD, BOS and General meeting of shareholders, agreed the Company to increase the predicted amount of routine related transactions to 30 million yuan (tax excluded) at most, including the business as financial leasing, commercial factoring and bill financing provided by Yuanxin Financial Leasing Co., Ltd to the Company and its wholly-owned subsidiaries for year of 2021. | July 13, 2021 July 29, 2021 | Juchao Website: http://www.cninfo.com.cn (No. 2021-050, No. 2021-051, No. 2021-053 and No. 2021-058) |
| The subordinate controlling subsidiary- Zhongke Meiling Cryogenic Technology Co., Ltd received a “Administrative Penalty Decision of Anhui Province Medical Products Administration” in mid-July from Anhui Province Medical Products Administration | July 16, 2021 | Juchao Website: http://www.cninfo.com.cn (No. 2021-056) |
| After review and approval by the BOD, agreed the Company to invest 15.0529 million yuan on reconstruction of the substation in refrigerator park of Hefei manufacturing base, thus providing a strong guarantee for the sustainable development of the operation and production of the Company. | August 18, 2021 | Juchao Website: http://www.cninfo.com.cn (No. 2021-060) |
| After review and approval by the BOD, agreed that the Company will hand over the idle land use rights and houses (lands located in Area A, Longgang Industrial Zone, Yaohai District, Hefei City) to government for expropriation. | August 18, 2021 | Juchao Website: http://www.cninfo.com.cn (No. 2021-060 and No. 2021-064) |
| After review and approval by the BOD, agreed that the Company should invest approximately 30.9131 million yuan for the | August 18, 2021 | Juchao Website: http://www.cninfo.com.cn |
| relocation and expansion of the extrusion line in Hefei refrigerator manufacturing base to ensure the improvement of manufacturing capacity and production & operation needs. | (No. 2021-060) | |
| The “Special Report on Deposit and Use of Funds Raised in the First Half of 2021” was released by the Company on August 18, 2021. And as of September 30, 2021, the projects with fund raised privately in 2016 actually have 1,131,713,720.82 yuan used cumulatively, the balance of the special account for proceeds deposit was 101,997,251.16 yuan (including interest income 4,388,287.76 yuan and maturity income of 40,554,235.69 yuan from bank wealth management products) | August 18, 2021 October 20, 2021 | Juchao Website: http://www.cninfo.com.cn (No. 2021-063 and No. 2021-083) |
IV. Quarterly financial statements(i) Financial statement
1. Consolidate balance sheet
Prepared by Changhong Meiling Co., Ltd.
Unit: Yuan
| Item | September 30, 2021 | December 31, 2020 |
| Current assets: | ||
| Monetary fund | 5,616,304,292.60 | 6,594,786,789.98 |
| Settlement provisions | ||
| Capital lent | ||
| Trading financial assets | 395,666,180.17 | 47,242,339.07 |
| Derivative financial assets | ||
| Note receivable | 159,935,906.44 | 340,421,386.71 |
| Account receivable | 2,031,949,829.74 | 1,130,275,780.66 |
| Receivable financing | 1,394,866,085.58 | 1,632,388,702.83 |
| Accounts paid in advance | 64,863,143.78 | 30,105,373.40 |
| Insurance receivable | ||
| Reinsurance receivables | ||
| Contract reserve of reinsurance receivable | ||
| Other account receivable | 116,036,131.33 | 145,705,978.26 |
| Including: Interest receivable | ||
| Dividend receivable | ||
| Buying back the sale of financial assets | ||
| Inventories | 1,602,309,728.39 | 1,715,354,951.43 |
| Contractual assets | ||
| Assets held for sale | ||
| Non-current asset due within one year | ||
| Other current assets | 74,584,938.18 | 198,353,464.98 |
| Total current assets | 11,456,516,236.21 | 11,834,634,767.32 |
| Non-current assets: | ||
| Loans and payments on behalf | ||
| Debt investment | ||
| Other debt investment | ||
| Long-term account receivable | ||
| Long-term equity investment | 53,836,406.41 | 76,982,822.38 |
| Investment in other equity instrument | ||
| Other non-current financial assets | 548,148,931.34 | 548,148,931.34 |
| Investment real estate | 53,629,308.83 | 53,888,462.00 |
| Fixed assets | 2,319,118,984.83 | 2,391,859,440.31 |
| Construction in progress | 81,634,715.75 | 60,775,088.96 |
| Productive biological asset | ||
| Oil and gas asset | ||
| Right-of-use assets | 33,033,246.07 | |
| Intangible assets | 947,790,673.24 | 936,851,520.65 |
| Expense on Research and Development | 81,001,073.76 | 73,028,441.56 |
| Goodwill | ||
| Long-term expenses to be apportioned | ||
| Deferred income tax asset | 117,082,630.70 | 127,185,979.94 |
| Other non-current asset | ||
| Total non-current asset | 4,235,275,970.93 | 4,268,720,687.14 |
| Total assets | 15,691,792,207.14 | 16,103,355,454.46 |
| Current liabilities: | ||
| Short-term loans | 886,293,630.28 | 1,336,209,050.55 |
| Loan from central bank | ||
| Capital borrowed | ||
| Trading financial liability | 2,318,206.64 | 4,584,076.51 |
| Derivative financial liability | ||
| Note payable | 5,194,596,289.96 | 4,439,607,982.34 |
| Account payable | 2,211,903,239.05 | 2,851,999,684.30 |
| Accounts received in advance |
| Contractual liability | 508,999,162.32 | 522,550,891.28 |
| Selling financial asset of repurchase | ||
| Absorbing deposit and interbank deposit | ||
| Security trading of agency | ||
| Security sales of agency | ||
| Wage payable | 173,386,003.30 | 290,321,776.05 |
| Taxes payable | 115,040,809.29 | 89,682,433.90 |
| Other account payable | 848,932,270.79 | 724,701,686.72 |
| Including: Interest payable | ||
| Dividend payable | 4,753,764.56 | 4,466,628.25 |
| Commission charge and commission payable | ||
| Reinsurance payable | ||
| Liability held for sale | ||
| Non-current liabilities due within one year | 323,227,524.41 | 407,825,150.74 |
| Other current liabilities | 25,692,352.24 | 22,923,698.73 |
| Total current liabilities | 10,290,389,488.28 | 10,690,406,431.12 |
| Non-current liabilities: | ||
| Insurance contract reserve | ||
| Long-term loans | 178,000,000.00 | 188,231,439.30 |
| Bonds payable | ||
| Including: Preferred stock | ||
| Perpetual capital securities | ||
| Lease liability | 22,352,167.76 | |
| Long-term account payable | 1,385,732.43 | 1,705,323.91 |
| Long-term wages payable | 8,596,106.90 | 10,571,526.69 |
| Accrual liability | 15,160,400.14 | 62,392,735.07 |
| Deferred income | 166,059,591.11 | 177,377,450.12 |
| Deferred income tax liabilities | 5,738,912.89 | 10,575,582.33 |
| Other non-current liabilities | ||
| Total non-current liabilities | 397,292,911.23 | 450,854,057.42 |
| Total liabilities | 10,687,682,399.51 | 11,141,260,488.54 |
| Owner’s equity: | ||
| Share capital | 1,044,597,881.00 | 1,044,597,881.00 |
| Other equity instrument | ||
| Including: Preferred stock | ||
| Perpetual capital securities |
| Capital public reserve | 2,683,833,100.04 | 2,683,837,229.12 |
| Less: Inventory shares | 17,324,792.23 | 9,929,336.18 |
| Other comprehensive income | -21,650,060.47 | -21,451,084.17 |
| Reasonable reserve | ||
| Surplus public reserve | 416,364,790.43 | 416,364,790.43 |
| Provision of general risk | ||
| Retained profit | 751,237,635.93 | 740,754,202.23 |
| Total owner’ s equity attributable to parent company | 4,857,058,554.70 | 4,854,173,682.43 |
| Minority interests | 147,051,252.93 | 107,921,283.49 |
| Total owner’ s equity | 5,004,109,807.63 | 4,962,094,965.92 |
| Total liabilities and owner’ s equity | 15,691,792,207.14 | 16,103,355,454.46 |
Legal Representative: Wu DinggangPerson in charge of accounting works: Pang HaitaoPerson in charge of accounting institute: Yang Jun
2. Consolidated Profit Statement (from the year-begin to the period-end)
Unit: Yuan
| Item | Current period | Last period |
| I. Total operating income | 13,915,010,518.02 | 11,356,742,966.11 |
| Including: Operating income | 13,915,010,518.02 | 11,356,742,966.11 |
| Interest income | ||
| Insurance gained | ||
| Commission charge and commission income | ||
| II. Total operating cost | 13,872,478,761.87 | 11,554,834,849.35 |
| Including: Operating cost | 12,225,814,695.57 | 9,469,161,384.07 |
| 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 | 96,101,240.28 | 99,798,451.84 |
| Sales expense | 1,064,459,268.59 | 1,519,429,320.36 |
| Administrative expense | 221,253,602.91 | 203,336,291.49 |
| R&D expense | 300,402,724.10 | 264,619,301.52 |
| Financial expense | -35,552,769.58 | -1,509,899.93 |
| Including: Interest expenses | 50,740,185.10 | 68,673,511.11 |
| Interest income | 100,950,646.76 | 105,402,339.93 |
| Add: other income | 84,253,298.12 | 73,419,100.44 |
| Investment income (Loss is listed with “-”) | 80,853,371.21 | 47,154,706.68 |
| Including: Investment income on affiliated company and joint venture | -21,089,185.99 | 752,761.07 |
| 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 “-”) | -28,310,289.03 | 17,956,801.15 |
| Loss of credit impairment (Loss is listed with “-”) | -21,358,115.43 | -33,008,077.62 |
| Losses of devaluation of asset (Loss is listed with “-”) | -46,558,863.61 | -34,714,276.42 |
| Income from assets disposal (Loss is listed with “-”) | -249,004.26 | -542,955.36 |
| III. Operating profit (Loss is listed with “-”) | 111,162,153.15 | -127,826,584.37 |
| Add: Non-operating income | 8,126,104.09 | 5,072,408.44 |
| Less: Non-operating expense | 2,003,084.43 | 1,206,761.93 |
| IV. Total profit (Loss is listed with “-”) | 117,285,172.81 | -123,960,937.86 |
| Less: Income tax expense | 29,394,642.88 | 1,746,437.69 |
| V. Net profit (Net loss is listed with “-”) | 87,890,529.93 | -125,707,375.55 |
| (i) Classify by business continuity | ||
| 1.continuous operating net profit (net loss listed with ‘-”) | 87,890,529.93 | -125,707,375.55 |
| 2.termination of net profit (net loss listed with ‘-”) | ||
| (ii) Classify by ownership |
| 1.Net profit attributable to owner’s of parent company | 62,259,854.30 | -123,555,526.37 |
| 2.Minority shareholders’ gains and losses | 25,630,675.63 | -2,151,849.18 |
| VI. Net after-tax of other comprehensive income | -100,790.49 | -3,423,690.97 |
| Net after-tax of other comprehensive income attributable to owners of parent company | -198,976.30 | -2,891,434.28 |
| (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 | -198,976.30 | -2,891,434.28 |
| 1.Other comprehensive income under equity method that can transfer to gain/loss | -204,914.10 | |
| 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 | 5,937.80 | -2,891,434.28 |
| 7.Other | ||
| Net after-tax of other comprehensive income attributable to minority shareholders | 98,185.81 | -532,256.69 |
| VII. Total comprehensive income | 87,789,739.44 | -129,131,066.52 |
| Total comprehensive income attributable to owners of parent Company | 62,060,878.00 | -126,446,960.65 |
| Total comprehensive income attributable to minority shareholders | 25,728,861.44 | -2,684,105.87 |
| VIII. Earnings per share: | ||
| (i) Basic earnings per share | 0.0596 | -0.1183 |
| (ii) Diluted earnings per share | 0.0596 | -0.1183 |
Enterprise combine under the same control in the Period, the combined party realized net profit of 0.00 Yuanbefore combination, and realized 0.00 Yuan at last period for combined partyLegal Representative: Wu DinggangPerson in charge of accounting works: Pang HaitaoPerson in charge of accounting institute: Yang Jun
3. Consolidated Cash Flow Statement (from the year-begin to the period-end)
Unit: Yuan
| Item | Current period | Last period |
| I. Cash flows arising from operating activities: | ||
| Cash received from selling commodities and providing labor services | 13,404,052,674.38 | 10,004,693,970.59 |
| 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 | 561,963,582.97 | 412,733,445.22 |
| Other cash received concerning operating activities | 117,355,922.31 | 106,402,002.16 |
| Subtotal of cash inflow arising from operating activities | 14,083,372,179.66 | 10,523,829,417.97 |
| Cash paid for purchasing commodities and receiving labor service | 12,095,383,651.27 | 8,837,934,853.44 |
| 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 | 1,248,072,379.51 | 1,057,706,226.87 |
| Taxes paid | 297,701,677.67 | 237,937,839.39 |
| Other cash paid concerning operating activities | 626,943,831.60 | 668,861,446.33 |
| Subtotal of cash outflow arising from operating activities | 14,268,101,540.05 | 10,802,440,366.03 |
| Net cash flows arising from operating activities | -184,729,360.39 | -278,610,948.06 |
| II. Cash flows arising from investing activities: | ||
| Cash received from recovering investment | 1,420,000,000.00 | 737,460,000.00 |
| Cash received from investment income | 23,968,192.46 | 42,570,007.43 |
| Net cash received from disposal of fixed, intangible and other long-term assets | 1,290,668.56 | 381,041.58 |
| Net cash received from disposal of subsidiaries and other units | ||
| Other cash received concerning investing activities | 157,222,294.61 | 122,087,124.32 |
| Subtotal of cash inflow from investing activities | 1,602,481,155.63 | 902,498,173.33 |
| Cash paid for purchasing fixed, intangible and other long-term assets | 187,456,291.30 | 296,007,313.74 |
| Cash paid for investment | 1,799,000,000.00 | 1,435,280,051.17 |
| Net increase of mortgaged loans | ||
| Net cash received from subsidiaries and other units obtained | ||
| Other cash paid concerning investing activities | 58,411.60 | |
| Subtotal of cash outflow from investing activities | 1,986,514,702.90 | 1,731,287,364.91 |
| Net cash flows arising from investing activities | -384,033,547.27 | -828,789,191.58 |
| III. Cash flows arising from financing activities | ||
| Cash received from absorbing investment | 15,000,000.00 | |
| Including: Cash received from absorbing minority shareholders’ investment by subsidiaries | 15,000,000.00 | |
| Cash received from loans | 1,293,560,455.26 | 1,703,478,583.33 |
| Other cash received concerning financing activities | 5,986,105.14 | |
| Subtotal of cash inflow from financing activities | 1,314,546,560.40 | 1,703,478,583.33 |
| Cash paid for settling debts | 1,674,330,870.00 | 1,374,663,591.82 |
| Cash paid for dividend and profit distributing or interest paying | 89,877,378.92 | 107,526,031.28 |
| Including: Dividend and profit of minority shareholder paid by subsidiaries | 1,598,892.00 | 4,796,676.00 |
| Other cash paid concerning financing activities | 15,403,414.62 | 2,432,566.62 |
| Subtotal of cash outflow from financing activities | 1,779,611,663.54 | 1,484,622,189.72 |
| Net cash flows arising from financing activities | -465,065,103.14 | 218,856,393.61 |
| IV. Influence on cash and cash equivalents due to fluctuation in exchange rate | 24,846,222.17 | -18,563,610.41 |
| V. Net increase of cash and cash equivalents | -1,008,981,788.63 | -907,107,356.44 |
| Add: Balance of cash and cash equivalents at the period-begin | 6,425,529,815.10 | 5,385,807,475.51 |
| VI. Balance of cash and cash equivalents at the period-end | 5,416,548,026.47 | 4,478,700,119.07 |
(ii) Explanation on financial statement adjustment
1. Financial statement adjustment at the beginning of the first year when implementation ofnew leasing standards from 2021
√Applicable □Not applicable
Whether to adjust the balance sheet account at the beginning of the year
√Yes □No
Explain why it is not necessary to adjust the balance sheet accounts at the beginning of the yearConsolidate balance sheet
Unit: Yuan
| Item | December 31, 2020 | January 1, 2021 | Adjustment amount |
| Current assets: | |||
| Monetary fund | 6,594,786,789.98 | 6,594,786,789.98 | |
| Settlement provisions | |||
| Capital lent | |||
| Trading financial assets | 47,242,339.07 | 47,242,339.07 | |
| Derivative financial assets | |||
| Note receivable | 340,421,386.71 | 340,421,386.71 | |
| Account receivable | 1,130,275,780.66 | 1,130,275,780.66 | |
| Receivable financing | 1,632,388,702.83 | 1,632,388,702.83 | |
| Accounts paid in advance | 30,105,373.40 | 30,070,303.06 | -35,070.34 |
| Insurance receivable | |||
| Reinsurance receivables | |||
| Contract reserve of reinsurance receivable | |||
| Other account receivable | 145,705,978.26 | 145,705,978.26 | |
| Including: Interest receivable | |||
| Dividend receivable | |||
| Buying back the sale of financial assets | |||
| Inventories | 1,715,354,951.43 | 1,715,354,951.43 | |
| Contractual assets | |||
| Assets held for sale | |||
| Non-current asset due within one year |
| Other current assets | 198,353,464.98 | 198,353,464.98 | |
| Total current assets | 11,834,634,767.32 | 11,834,599,696.98 | -35,070.34 |
| 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 | 76,982,822.38 | |
| Investment in other equity instrument | |||
| Other non-current financial assets | 548,148,931.34 | 548,148,931.34 | |
| Investment real estate | 53,888,462.00 | 53,888,462.00 | |
| Fixed assets | 2,391,859,440.31 | 2,391,859,440.31 | |
| Construction in progress | 60,775,088.96 | 60,775,088.96 | |
| Productive biological asset | |||
| Oil and gas asset | |||
| Right-of-use assets | 9,818,834.44 | 9,818,834.44 | |
| Intangible assets | 936,851,520.65 | 936,851,520.65 | |
| Expense on Research and Development | 73,028,441.56 | 73,028,441.56 | |
| Goodwill | |||
| Long-term expenses to be apportioned | |||
| Deferred income tax asset | 127,185,979.94 | 127,185,979.94 | |
| Other non-current asset | |||
| Total non-current asset | 4,268,720,687.14 | 4,278,539,521.58 | 9,818,834.44 |
| Total assets | 16,103,355,454.46 | 16,113,139,218.56 | 9,783,764.10 |
| Current liabilities: | |||
| Short-term loans | 1,336,209,050.55 | 1,336,209,050.55 | |
| Loan from central bank | |||
| Capital borrowed | |||
| Trading financial liability | 4,584,076.51 | 4,584,076.51 | |
| Derivative financial |
| liability | |||
| Note payable | 4,439,607,982.34 | 4,439,607,982.34 | |
| Account payable | 2,851,999,684.30 | 2,851,999,684.30 | |
| Accounts received in advance | |||
| Contractual liability | 522,550,891.28 | 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 | 290,321,776.05 | |
| Taxes payable | 89,682,433.90 | 89,682,433.90 | |
| Other account payable | 724,701,686.72 | 724,701,686.72 | |
| Including: Interest payable | |||
| Dividend payable | 4,466,628.25 | 4,466,628.25 | |
| Commission charge and commission payable | |||
| Reinsurance payable | |||
| Liability held for sale | |||
| Non-current liabilities due within one year | 407,825,150.74 | 412,825,431.41 | 5,000,280.67 |
| Other current liabilities | 22,923,698.73 | 22,923,698.73 | |
| Total current liabilities | 10,690,406,431.12 | 10,695,406,711.79 | 5,000,280.67 |
| Non-current liabilities: | |||
| Insurance contract reserve | |||
| Long-term loans | 188,231,439.30 | 188,231,439.30 | |
| Bonds payable | |||
| Including: Preferred stock | |||
| Perpetual capital securities | |||
| Lease liability | 4,783,483.43 | 4,783,483.43 | |
| Long-term account payable | 1,705,323.91 | 1,705,323.91 | |
| Long-term wages | 10,571,526.69 | 10,571,526.69 |
| payable | |||
| Accrual liability | 62,392,735.07 | 62,392,735.07 | |
| Deferred income | 177,377,450.12 | 177,377,450.12 | |
| Deferred income tax liabilities | 10,575,582.33 | 10,575,582.33 | |
| Other non-current liabilities | |||
| Total non-current liabilities | 450,854,057.42 | 455,637,540.85 | 4,783,483.43 |
| Total liabilities | 11,141,260,488.54 | 11,151,044,252.64 | 9,783,764.10 |
| 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 | 2,683,837,229.12 | |
| Less: Inventory shares | 9,929,336.18 | 9,929,336.18 | |
| Other comprehensive income | -21,451,084.17 | -21,451,084.17 | |
| Reasonable reserve | |||
| Surplus public reserve | 416,364,790.43 | 416,364,790.43 | |
| Provision of general risk | |||
| Retained profit | 740,754,202.23 | 740,754,202.23 | |
| Total owner’ s equity attributable to parent company | 4,854,173,682.43 | 4,854,173,682.43 | |
| Minority interests | 107,921,283.49 | 107,921,283.49 | |
| Total owner’ s equity | 4,962,094,965.92 | 4,962,094,965.92 | |
| Total liabilities and owner’ s equity | 16,103,355,454.46 | 16,113,139,218.56 | 9,783,764.10 |
Statement of adjustment：
In accordance with the new lease standards exercise on 1 Jan. 2021, adjust the amount of itemsrelated to the financial statements at the beginning of the year of the first implementation based onthe cumulative impact of the first implementation of the new lease standards, without adjusting thecomparable period information. For the operating lease prior to the first execution date, theCompany shall measure the lease liability according to the present value of remaining leasepayments discounted on the basis of the internal resource input interest rate on the first executiondate, and the right-of-use asset shall make necessary adjustments according to the sum of the leaseliability and the prepayment.
2. Retrospective adjustment of the comparative data for initial implementation of new leasingstandards from 2021
□ Applicable √Not applicable
(iii) Audit reportWhether the 3
rdquarterly report has been audited or not
□Yes √ No
The 3
rd
quarterly report of the Company has not been audited.
Board of Directors ofChanghong Meiling Co., Ltd.October 20, 2021