长虹美菱股份有限公司
CHANGHONG MEILING CO., LTD.
二〇二一年年度报告
Annual Report 2021
CHANGHONG MEILING CO.,LTD. Annual Report 2021
Section I. Important Notice, Contents and Interpretation
Board of Directors, Supervisory Committee, all directors, supervisors and senior executives of Changhong
Meiling Co., Ltd. (hereinafter referred to as the Company) hereby confirm that there are no any fictitious
statements, misleading statements, or important omissions carried in this report, and shall take all responsibilities,
individual and/or joint, for the reality, accuracy and completion of the whole contents.
Mr. Wu Dinggang, Chairman of the Company, Mr. Pang Haitao, person in charge of accounting work and Mr.
Yang Jun, person in charge of accounting organ (accountant in charge) hereby confirm that the Financial Report of
2021 Annual Report is authentic, accurate and complete.
The Company did not have directors, supervisors and senior executives of the Company could not guarantee the
reality, accuracy and completion of the whole contents or have objections.
All the directors attended the board meeting to deliberating the Report by a combination of on-site and
communication.
Modified audit opinions notes
□ Applicable √ Not applicable
Shine Wing Certified Public Accountants (LLP) issued standard unqualified Auditors’ Report for the Company’s
Financial Report of 2021.
Major defects in internal control
□ Applicable √Not applicable
The Company had no major defects in internal control in the reporting period.
Risk warning of concerning the forward-looking statements with future planning involved in annual report
√ Applicable □Not applicable
Concerning the forward-looking statements with future planning involved in the Report, they do not constitute a
substantial commitment for investors, investors and the person concerned should maintain adequate risk
awareness, furthermore, differences between the plans, forecast and commitments should be comprehended.
Investors are advised to exercise caution of investment risks.
Investors are advised to read the full text of annual report, and pay particular attention to the following risk factors:
More details about the possible risks and countermeasures in the operation of the Company are described in the
report “XI. Prospects for the future development of the company” of “Section III. Management Analysis and
Discussion”, investors are advised to read the relevant content.
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CHANGHONG MEILING CO.,LTD. Annual Report 2021
Securities Times, China Securities Journal, Hong Kong Commercial Daily and Juchao Website (Juchao Website
(www.cninfo.com.cn)) are the media for information disclosure for year of 2022 that appointed by the Company.
All public information under the name of the Company disclosed on the above said media and website shall
prevail, and investors are advised to exercise caution.
Does the Company need to comply with disclosure requirements of the special industry: no
Profit distribution pre-plan or capitalizing of common reserves pre-plan deliberated by the Board in the reporting
period
√ Applicable □ Not applicable
Whether to increase the share capital with public reserve
□Yes √No
The profit distribution plan for year of 2021, that deliberated and approved by 16th session of the 10th BOD was:
take the total shares (on the registration date when implement the equity distribution plan for year of 2021) as the
base, distributed 0.5 yuan (tax included) bonus in cash for every 10-share hold by all shareholders, no share bonus
issued and no capitalizing of common reserves carried out.
The implementation of repurchase of domestically listed foreign shares (B share) was completed on February 18,
2022. And the cancellation of the repurchased shares are completed on March 2, 2022. Total share capital of the
Company comes to 1,029,923,715 shares after cancellation, and reduction of registration capital and amendment
of Article of Association still needs to be submitted for deliberation on Shareholders’ General Meeting.
Directors, supervisors and senior executives of the Company respectively signed a Written Confirmation Opinions
for 2021 Annual Report.
Supervisory Committee of the Company formed Written Examination Opinions for 2021 Annual Report.
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CHANGHONG MEILING CO.,LTD. Annual Report 2021
Documents Available for Reference
I.Financial statement carrying the signatures and seals of the Chairman, principal of the accounting works and
person in charge of accounting organ;
II. Original audit report carrying the seal of the CPA and signature & seal of the accountants;
III. Original documents of the Company and manuscripts of public notices that disclosed in the website designated
by CSRC in the report period;
The aforesaid documents are all available at headquarter of the Company. The Company would provide them
timely when CSRC and Shenzhen Stock Exchange require or the shareholders need consultation according to the
regulations and Articles of Association.
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CHANGHONG MEILING CO.,LTD. Annual Report 2021
Contents
Section I Important Notice, Contents and Interpretation 1
Section II Company Profile and Main Financial Indexes 6
Section III Management Discussion and Analysis 13
Section IV Corporate Governance 58
Section V Enviornmental and Social Responsibility 93
Section VI Important Events 100
Section VII Changes in shares and particular about shareholders 155
Section VIII Preferred Stock 165
Section IX Bonds 166
Section X Financial Report 167
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CHANGHONG MEILING CO.,LTD. Annual Report 2021
Interpretation
Items Refers to Contents
Company, The Company, Changhong
Refers to CHANGHONG MEILING CO.,LTD.
Meiling or Meiling Electric
Sichuan Changhong or controlling
Refers to Sichuan Changhong Electric Co., Ltd.
shareholder
Changhong Group Refers to Sichuan Changhong Electronics Holding Group Co., Ltd.
Hong Kong Changhong Refers to CHANGHONG (HK) TRADING LIMITED
Meiling Group Refers to Hefei Meiling Group Holdings Limited
Industry Investment Group Refers to Hefei Industry Investment Holding (Group) Co., Ltd.
Changhong Air-conditioner Refers to Sichuan Changhong Air-conditioner Co., Ltd.
Zhongke Meiling Refers to Zhongke Meiling Cryogenic Technology Co., Ltd.
Mianyang Meiling Refers to Mianyang Meiling Refrigeration Co., Ltd.
Jiangxi Meiling Refers to Jiangxi Meiling Electric Appliance Co., Ltd.
Ridian Technology Refers to Changhong Meiling Ridian Technology Co., Ltd.
Wulian Technology Refers to Hefei Meiling Wulian Technology Co., Ltd
Zhongshan Changhong Refers to Zhongshan Changhong Electric Co., Ltd.
Meiling Life Appliances Refers to Hefei Changhong Meiling Life Appliances Co., Ltd.
Changhong Huayi Refers to Changhong Huayi Compressor Co., Ltd.
Zhiyijia Company Refers to Sichuan Zhiyijia Network Technology Co., Ltd.
Shine Wing Refers to Shine Wing Certified Public Accountants (LLP)
CSRC Refers to China Securities Regulatory Commission
China Securities Regulatory Commission, Anhui Province Securities
Anhui Securities Bureau Refers to
Regulatory Bureau
SSE Refers to Shenzhen Stock Exchange
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CHANGHONG MEILING CO.,LTD. Annual Report 2021
Section II Company Profile and Main Financial Indexes
I. Company information
Changhong Meiling,
Short form of the stock Stock code 000521, 200521
Hongmeiling B
Short form of the Stock after changed
N/A
(if applicable)
Stock exchange for listing Shenzhen Stock Exchange
Name of the Company (in Chinese) 长虹美菱股份有限公司
Short form of the Company (in
长虹美菱
Chinese)
Foreign name of the Company (if
CHANGHONG MEILING CO.,LTD.
applicable)
Abbr. of English name of the
CHML
Company (if applicable)
Legal representative Wu Dinggang
Registrations add. No. 2163, Lianhua Road, Economic and Technology Development Zone, Hefei
Code for registrations add 230601
The Company was registered in the Hefei Administration for Industry and Commerce on
November 25, 1992 with the address registered as Linquan Road, Hefei City (Meiling
Economic Development Zone); on March 13, 1997, registered address changed to No.48
Historical changes on the registration
Wuhu Road, Hefei instead of Linquan Road, Hefei City (Meiling Economic Development
address
Zone); on May 19, 2008, the address changed to No. 2163, Lianhua Road, Economic and
Technology Development Zone, Hefei from No.48 Wuhu Road, Hefei. Registered address
of the Company has not changed during the reporting period.
Offices add. No. 2163, Lianhua Road, Economic and Technology Development Zone, Hefei
Codes for office add. 230601
Website http://www.meiling.com
E-mail info@meiling.com
II. Person/Way to contact
Secretary of the Board Rep. of security affairs
Name Li Xia Pan Haiyun
Contact add. No. 2163, Lianhua Road, Economic and Technology No. 2163, Lianhua Road, Economic and
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CHANGHONG MEILING CO.,LTD. Annual Report 2021
Development Zone, Hefei Technology Development Zone, Hefei
Tel. 0551-62219021 0551-62219021
Fax. 0551-62219021 0551-62219021
e-mail lixia@meiling.com haiyun.pan@meiling.com
III. Information disclosure and preparation place
Website of the Stock Exchange where the annual
Securities Times, China Securities Journal, Hong Kong Commercial Daily
report of the Company disclosed
Media and Website where the annual report of the
Juchao website: http://www.cninfo.com.cn
Company disclosed
Room of secretary of the Board, 2/F , administrative center, Office building
Preparation place for annual report
of the Company
IV. Registration changes of the Company
Organization code Uniform social credit code: 9134000014918555XK
Changes of main business since listing (if applicable) No changes
1. In October 1993, after initial listing, controlling shareholder of the Company-- Hefei Meiling Industrial Corp. (renamed
as Hefei Meiling Group Co., dated 23 May 1994), executing controlling rights of the Company and management right of
the state-owned assets on behalf of Hefei State-owned Assets Management Office, named at that time;
2. From November 1997 to May 2003, controlling shareholder of the Company was Hefei Meiling Group Holding Co.,
Ltd. (established base on former Meiling Group Co.,, “Meiling Group” for short), an enterprise solely owned by the State;
mainly operating the state-owned capital in authorized from State-owned Assets Management Commission of Hefei City,
ensuring the maintenance and appreciation of state-owned assets;
3. On 29 May 2003, Meiling Group entered into “Equity Transfer Agreement” with Shunde GreenKel Enterprise
Development Co., ltd. (“GreenKel”), the 82,852,683 state-owned shares held by the Company was transfer to GreenKel.
Previous After transferring, GreenKel comes to the first largest shareholder of the Company.
changes 4. According to the spirit of “Bulletin of Treatment Opinions on GreenKel Company purchasing State-owned Assets
for Shares of Listed Company” (GZFCQ[2006] No.: 44) jointly issued from SASAC and Ministry of Finance in April 2006,
controlling Meiling Group took back the Meiling Electric 82,852,683 shares from GreenKel by procedures, which has been
shareholde transferred. In September 2006, relevant equity transfer agreement signed between the Meiling Group and GreenKel is
rs (if invalid, which was confirmed by the “Award” ((2006) HZZ No.: 104) issued from arbitration commission of Hefei; the
applicable) state-owned legal person’s 82,852,683 shares, held by GreenKel, should return to Meiling Electric, and relevant equity
consideration will pay to GreenKel by Meiling Group . On 29 December 2006, the 82,852,683 shares of Meiling Electric
were transfer to Meiling Group by GreenKel, and Meiling Group becomes the controlling shareholder of Meiling Electric
again.
5. On 18 May 2006 and 11 January 2007, Meiling Group entered into “Equity Transfer Agreement of Meiling Electric”
and “Supplementary Agreement of Equity Transfer of Meiling Electric” respectively with Sichuan Changhong and
Changhong Group, among the 123,396,375 shares held by Meiling Group, 82,852,683 shares were transferred
respectively to Sichuan Changhong and Changhong Group according to the transfer way regulated in agreement; of this
transferring, 45,000,000 shares (10.88% of total share capital of the Company) were transferred to Sichuan Changhong,
the first largest shareholder of the Company while 37,852,683 shares (9.15% of total share capital of the Company) were
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CHANGHONG MEILING CO.,LTD. Annual Report 2021
transferred to Changhong Group, the third largest shareholder of the Company.
6. On 29 October 2008, Changhong Group and Sichuan Changhong entered into “Equity Transfer Agreement of Hefei
Meiling Co., Ltd.”, the 32,078,846 restricted circulations A shares of Meiling Electric held by Changhong Group were
transferred by agreement to Sichuan Changhong. On 23 December 2008, the aforesaid equity transfer was approved by
“Reply on Matters of Equity held by State-owned Shareholders of Hefei Meiling Co., Ltd.” (GZCQ(2008) No.: 1413)
from SASAC; on 21 January 2009, the aforesaid transfer was registered for ownership transfer in Shenzhen Branch of
China Securities Depository and Clearing Corporation Limited.The first majority shareholder of the Company comes to
Sichuan Changhong.
7. From 12 November 2018 to 25 February 2019, Sichuan Changhong and its concerted action Hong Kong Changhong
totally buys 16,231,024 shares of the Company through the secondary market by bidding (including A-stock of
13,751,756 shares and B-stock of 2,479,268 shares), a 1.55% in total share capital of the Company. After stake enlarge,
Sichuan Changhong and its concerted action Hong Kong Changhong holds 281,832,434 shares of the Company in total, a
26.98% of the total share capital of the Company; of which, Sichuan Changhong directly holds 248,457,724 A-share of
the Company, a 23.79% in total share capital of the Company while Hong Kong Changhong holds circulation B-share of
the Company amounting as 33,374,710 shares, a 3.19% in total share capital of the Company.
8. Ended as 31 December 2021, Sichuan Changhong and its concerted action Hong Kong Changhong totally holds
281,832,434 shares of the Company, a 26.98% in total share capital of the Company; Sichuan Changhong directly holds
248,457,724 A-share of the Company, a 23.79% in total share capital of the Company while Hong Kong Changhong
holds circulation B-share of the Company amounting as 33,374,710 shares, a 3.19% in total share capital of the Company.
V. Other relevant information
(1) CPA engaged by the Company
Name of CPA Shine Wing Certified Public Accountants (LLP)
8/F, Block A, Fu Hua Mansion No.8 Chao Yang Men Bei da jie, Dong Cheng District, Beijing,
Offices add. for CPA
P.R.C
Signing Accountants Li Xifu, Wang Xiaodong
(2) Sponsor engaged by the Company for performing continuous supervision duties in reporting period
□ Applicable √ Not applicable
(3) Financial consultant engaged by the Company for performing continuous supervision duties in
reporting period
□ Applicable √ Not applicable
VI. Main accounting data and financial indexes
Whether it has retroactive adjustment or re-statement on previous accounting data
□ Yes √ No
Changes in the current
2021 2020 year over the previous 2019
year (+,-)
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CHANGHONG MEILING CO.,LTD. Annual Report 2021
Operating income (RMB) 18,032,957,501.44 15,388,050,229.67 17.19% 16,553,252,894.93
Net profit attributable to
shareholders of the listed company 51,898,388.84 -85,565,716.91 160.65% 56,441,479.14
(RMB)
Net profit attributable to
shareholders of the listed company
after deducting non-recurring gains
-140,217,633.26 -277,816,055.91 49.53% -50,454,661.39
and losses (RMB)
Net cash flow arising from
operating activities (RMB)
160,923,258.10 1,403,516,222.46 -88.53% 1,285,003,985.04
Basic earnings per share 0.0497 160.68%
-0.0819 0.0540
(RMB/Share)
Diluted earnings per share 0.0497 160.68%
-0.0819 0.0540
(RMB/Share)
Weighted average ROE
1.07% 2.80 percentage point
-1.73% 1.13%
s up
Changes at end of the
current year compared
Year-end of 2021 Year-end of 2020 Year-end of 2019
with the end of
previous year (+,-)
Total assets (RMB) 15,190,469,756.33 16,103,355,454.46 -5.67% 14,202,233,615.47
Net assets attributable to
shareholder of listed company 4,837,334,400.21 4,854,173,682.43 -0.35% 5,004,947,673.36
(RMB)
The cause of the accounting policy change and accounting error correction
□ Applicable √ Not applicable
The lower one of net profit before and after deducting the non-recurring gains/losses in the last three fiscal years
is negative, and the audit report of last year shows that the ability to continue operating is uncertain
□Yes √ No
The lower one of net profit before and after deducting the non-recurring gains/losses is negative
√Yes □No
Item 2021 2020 Note
Operating income (RMB) 18,032,957,501.44 15,388,050,229.67
It mainly refers to the income
from house rental, waste sales,
Amount deducted from
144,383,101.14 135,186,516.29 labor services, warehousing
operating income (RMB)
services and maintenance
services in the current period
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CHANGHONG MEILING CO.,LTD. Annual Report 2021
Operating income after
17,888,574,400.30 15,252,863,713.38
deduction (RMB)
VII. Accounting data difference under domestic and foreign accounting standards
(1) Difference of the net profit and net assets disclosed in financial report, under both IAS (International
Accounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable √ Not applicable
The Company has no difference of the net profit and net assets disclosed in financial report, under both IAS
(International Accounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles) in reporting
period.
(2) Difference of the net profit and net assets disclosed in financial report, under both foreign accounting rules and
Chinese GAAP (Generally Accepted Accounting Principles)
√ Applicable □ Not applicable
In RMB
Net profit attributable to shareholders of listed Net assets attributable to shareholders of listed
company company
Current period Previous period Ending amount Opening amount
Chinese GAAP 51,898,388.84 -85,565,716.91 4,837,334,400.21 4,854,173,682.43
Items and amount adjusted by foreign accounting rules
Foreign accounting rules 51,898,388.84 -85,565,716.91 4,837,334,400.21 4,854,173,682.43
The Company had no difference of the net profit or net assets disclosed in financial report, under either foreign
accounting rules or Chinese GAAP (Generally Accepted Accounting Principles) in the period.
(3) Reasons for the differences of accounting data under accounting rules in and out of China
√ Applicable □ Not applicable
The “Notice of Relevant Issues of Audit for Company with Domestically Foreign Shares Offering” was issued
from CSRC dated 12 September 2007, since the day issuing, cancel the previous “dual audit” requirement for
companies who offering domestically listed foreign shares (B-share enterprise) while engaging securities practice
qualification CPA for auditing. The Company did not compile financial report under foreign accounting rules
since 2007, the financial report of the Company is complying on the “Accounting Standard for Business
Enterprise” in China, and therefore, there are no differences of accounting data under accounting rules in and out
of China at period-end.
VIII. Quarterly main financial index
In RMB
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CHANGHONG MEILING CO.,LTD. Annual Report 2021
Q1 Q2 Q3 Q4
Operating income 4,130,121,476.44 5,472,637,868.85 4,312,251,172.73 4,117,946,983.42
Net profit attributable to shareholders
5,297,826.42 31,859,685.12 25,102,342.76 -10,361,465.46
of the listed company
Net profit attributable to shareholders
of the listed company after deducting -26,469,858.74 -37,082,556.27 -1,016,633.94 -75,648,584.31
non-recurring gains and losses
Net cash flow arising from operating
-968,522,457.80 380,026,340.98 403,766,756.43 345,652,618.49
activities
Whether there are significant differences between the above-mentioned financial index or its total number and the
relevant financial index disclosed in the company’s quarterly report and semi-annual report
□Yes √ No
IX. Items and amounts of non-recurring profit (gains)/losses
√ Applicable □ Not applicable
In RMB
Item 2021 2020 2019 Note
Found more in
“Income from assets
Gains/losses from the disposal of
disposal”,
non-current asset (including the write-off -133,214.72 -2,111,295.55 -9,537,945.52
“non-operation
that accrued for impairment of assets)
income &
expenditure”
Governmental subsidy calculated into
current gains and losses(while closely
related with the normal business of the Found more in “Other
Company, the government subsidy that income”,
103,024,250.74 99,043,859.77 103,813,820.02
accord with the provision of national “Non-operation
policies and are continuously enjoyed in line income”
with a certain standard quota or quantity are
excluded)
Gains/losses of fair value changes arising
from holding of the trading financial asset,
trading financial liability and investment ”Found more in
earnings obtained from disposing the trading “Income of fair value
105,811,461.63 123,242,542.42 27,685,917.00
financial asset, trading financial liability, changes”, “Investment
and financial assets available for sale, except income”
for the effective hedging business related to
normal operation of the Company
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CHANGHONG MEILING CO.,LTD. Annual Report 2021
Found more in
Switch back of the impairment for
“Account
receivables that has impairment test 3,245,314.13 5,061,635.85 1,936,952.67
receivable/other
independently
account receivable”
Found more in
Other non-operating income and expenses “Non-operation
4,867,985.38 2,434,283.11 1,070,165.28
other than the above income &
expenditure”
Less: impact on income tax 21,813,023.99 34,083,593.36 15,170,286.77
Impact on minority shareholders’
equity (post-tax)
2,886,751.07 1,337,093.24 2,902,482.15
Total 192,116,022.10 192,250,339.00 106,896,140.53
Details of other gains/losses items that meets the definition of non-recurring gains/losses:
□ Applicable √ Not applicable
There are no other gains/losses items that meet the definition of non-recurring gains/losses in the Company.
Explain the items defined as recurring profit (gain)/loss according to the lists of extraordinary profit (gain)/loss in Q&A
Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public --- Extraordinary Profit/loss
□ Applicable √ Not applicable
There are no items defined as recurring profit (gain)/loss according to the lists of extraordinary profit (gain)/loss in Q&A
Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public --- Extraordinary Profit/loss
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CHANGHONG MEILING CO.,LTD. Annual Report 2021
Section III Management Discussion and Analysis
I. Industry of the Company during the reporting period
1. Refrigerator industry
The refrigerator industry is one of the mature home appliance industries, and the active brands in the market are
relatively stable. From the overall data, 2021 was a satisfactory year for China's refrigerator market. In the face of
unfavorable factors such as repeated global pandemics and insufficient transportation capacity, in 2021, China's
refrigerator manufacturing industry has overcome multiple difficulties such as sharp fluctuations in raw material
prices, increased supply chain pressure, weak domestic demand, and declining product profit margins, and
increased the added value of products by optimizing product structure and cost and deeply digging the market, so
that the industry development had a steady rise. According to industry online data, China's refrigerator production
in 2021 was 86.096 million units, a year-on-year increase of 2.0%; total sales volume was 86.433 million units, a
year-on-year increase of 2.3%. It is worth noting that export is still the main driving force for the growth of the
refrigerator industry. In 2021, the export volume of China's refrigerator industry was 43.786 million units, a
year-on-year increase of 4.8%, effectively driving the growth of the industry's overall sales.
2.Air-conditioning industry
Air-conditioning products are the household appliances that are the most affected by macro economy and weather
factors. In the past two years, due to the continuous downturn in the real estate market and the impact of the
pandemic, the scale of the air-conditioning industry has continued to decline. In 2021, affected by factors such as
the frequent outbreaks of pandemic at home, rising raw material prices, dual control of energy efficiency, and too
much rainfall in the peak season of air-conditioning sales, the air-conditioning industry experienced a
phenomenon of "low peak season", resulting in a "cold year" to the air-conditioning market in 2021. According to
industry online statistics, in 2021, the total sales volume of China's household air conditioning industry was 150
million units, a year-on-year increase of 7.9%, and a year-on-year increase of 1.3% compared with 2019; of which
the domestic sales volume was 80 million units, a year-on-year increase of 5.5%, but a year-on-year decrease of
8.1% compared with 2019; exported 70 million units, a year-on-year increase of 11.0%, and a year-on-year
increase of 16.1% compared with 2019. After years of rapid growth in the air-conditioning industry, the number of
household ownership was high, and the industry demand has entered a new cycle of stock replacement. However,
consumers' demand for replacement of air-conditioning products has been released slowly, and the overall sales
volume will tend to be relatively stable in the next few years.
3.Washing machine industry
In 2021, the washing machine market has generally recovered to the level before the pandemic. According to the
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CHANGHONG MEILING CO.,LTD. Annual Report 2021
omni-channel aggregate data of All View Cloud (AVC), in 2021, omni-channel retail sales was 76.6 billion yuan, a
year-on-year increase of 7.3%, and retail sales volume was 37.18 million units, a year-on-year growth of 0.8%.
However, due to the pandemic, changes in consumer demand and consumption patterns, the major brands have
upgraded their products in terms of structure, attributes, form, function, price and demand. Integration of wash
and dry, large capacity, silent, sterilizing wash, and intelligent modules have become the main theme of upgrading
and innovation in subdivided tracks.
II.Main businesses of the company engaged in during the Period
The Company is one of China's major electric appliance manufacturers, possesses four major domestic
manufacturing bases in Hefei, Mianyang, Jingdezhen and Zhongshan, and two overseas manufacturing bases in
Indonesia and Pakistan. Currently, we have completed the industry layout of white electricity basically, covering
the full product line including refrigerator, washing machine, air conditioner, kitchen and bath, small household
appliances and others, at the same time, the Company enters the new industrial fields as bio-medical and with
certain achievements made.
Over the past 30 years, the Company has always been adhering to the "independent innovation, created in China",
and always focus on refrigeration industry without stop, elaborately building the core competitiveness of
enterprises by technological innovation and product innovation. Relying on the cutting-edge R&D team and
advanced technology, Meiling continue to achieve breakthrough results in the variable frequency, intelligence,
refreshment, thin-wall, odourless, energy-saving, forced air cooling, deep cooling and other fields. The company
has set up the first RoHS public testing center in Anhui Province, the national enterprise technology center, the
national industrial design center, and the 5G industrial internet innovation application laboratory. The Company
has successively awarded several national honorary titles as the “Smart Refrigerator Intelligent Manufacturing
Pilot Demonstration Project”, the “National Green Factory”, the “National Industrial Design Center”, “2020 Top
10 Light Industry Technology Enterprises in China” and “National Leading Enterprises of Qualify in Home
Appliance Industry” etc. At the same time, many products of Meiling have repeatedly won a number of domestic
and international innovation awards, continuously demonstrating the capabilities and strength of Meiling's
intelligent manufacturing and Meiling brand intelligent innovation technology. At the 2021 AWE Award
Ceremony, "Very Clean" BCD-503WUP9BQ, the company's new high-end refrigerator won the AWE Excellent
Product Award for its excellent product design and innovative intelligent technology. In the China Refrigerator
Industry Symposium, 2021, Meiling refrigerator stood out, with its leading fresh-keeping technology and
excellent quality, "Very clean" BCD-503WUP9BQ won the "Fresh Clean Star", and "Star" refrigerator
BCD-532WPUCY won the "Outstanding Channel Performance Product Award". Furthermore, with its deep
cultivation and innovation in fresh-keeping technology, the company won the only "Annual Pioneer
Freshness-Preservation Brand" award of China refrigerator industry.
In recent years, driven by the industry transformation and upgrades and consumption upgrades, the Company
always adheres to the strategy of smart and variable frequency products, promoted the Company’s products to
transform and upgrade to become intelligent and high-end and comprehensively enhanced the competitiveness of
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CHANGHONG MEILING CO.,LTD. Annual Report 2021
products in the industry by grasping the opportunities of refreshment, thin-wall, odourless, air cooling and energy
efficiency upgrades and effectively resolving the pain points of customers. Under the guidance of the “intelligent”
strategy, in recent year, the Company has released and listed a number of CHiQ series of smart refrigerators and
air-conditioning products, “M-Fresh” refrigerators, “M-Fresh” comprehensive thin series products and “very
clean” series of refrigerators, Meiling always leads the trend of the industry by solving the pain points of users
effectively. In April 2021, the company joined hands with Jingdong and launched the "Star" series of mother and
infant refrigerators equipped with LINF spectral plasma technology, which meets the rigid needs of infants &
moms in different stages of getting ready for pregnancy, pregnancy and parenting. In May 2021, the company
released a new generation of "very thin" direct-drive front-loading washing machines, using innovative
technology, i.e. magnetic levitation ultra-thin DD motor, to realize the product concept of "direct drive is cleaner
and quieter", and the main performance indicators such as noise and energy efficiency have reached the advanced
level at home and abroad. In July 2021, the second-generation series of "M Fresh" products using "zero shock"
and "soft freeze" preservation technologies were launched globally, breaking through the restricted area of
refrigeration and freezing technologies of traditional refrigerators, and opening a brand new competition track to
soft freeze preservation technology in the refrigerator industry. In November 2021, the company released the latest
gas-heating water heater. By combining the invention patent technology of "a segmented burner and wall-hung
boiler", it has the function of "bathing scene customization" by person and scene, which can provide different
bathing modes to meet the diverse hot water needs of users. In the same month, the third-generation dual-engine
variable-frequency M-Twindrive series ultra-low temperature freezer with unique advantages such as "dual
independent systems, extreme uniformity, frequency conversion and energy saving" were released to the public,
realizing the "intelligent storage" and "intelligent acquisition" of samples, providing guarantee for the storage
security of samples again, and providing users with new options. In January 2022, the shared air conditioner for
the living room and dining room using the far-to-near soft & comfortable wind technology was released for the
first time, bringing users a comfortable home system that can be used for both living room and dining room.
Facing the future, the Company will implement the management policy of “one goal and three main lines” and
further improve the home internet layout, accelerate the intelligentization of home appliances, form a dual-growth
engine of “hardware + services”, drive the transformation and upgrading of the Company’s profitability model,
investigate the new value-added service models for home appliance enterprises, meet new competition pattern in
the industry, and achieve its own sustainable and stable development under the guidance of the core values of
“professionalism and shared development”. Meanwhile, based on the “Smart Home Eco-system Project” and the
existing products, the company will enhance the R&D, manufacturing, sales and cooperative capabilities of
integrated white goods so as to provide users with a complete set of smart white goods system solutions.
During the reporting period, main income of the Company coming from refrigerator (freezer), air conditioner,
washing machine, small home appliances, kitchen & toilet products and biomedical etc., total amounting to
17.332 billion yuan, a 96.11% of the operating income.
III. Core Competitiveness Analysis
(1) Brand capacity
15
CHANGHONG MEILING CO.,LTD. Annual Report 2021
The Company is one of the famous home appliances manufacturers in China, owns several product lines such as
refrigerator, freezing box, air conditioner, washing machine, small household appliances and biomedical etc.
“Meiling” brand is listed as one of the most valuable brands in China. In recent years, the Company has create the
competitiveness of the brand by continuously reshaping its brand image, innovating core technology and
developing high-end intelligent products. In terms of reshaping brand image, in order to enhance the brand image
and further expand the market influence, the Company repositioning the brand. In October 2015, the Company
completely update the LOGO, and launching the new brand proposition of “Meiling, let the good comes”. Along
with the release of new LOGO, Meiling will also implement a brand strategy of "Good Trilogy", including the
direct sensory experience of “experience the good", the spirit soul enjoyment of “enjoy the good”, and the lifestyle
faith of “believe in the good”.
In terms of continuous innovation of core technologies, on the one hand, the company continuously promoted the
innovation of fresh-keeping, intelligent and frequency conversion technologies to maintain the leading position
in the industry in order to meet the needs of industry and market development. On the other hand, with the help of
consumption upgrades, in order to meet the personalized differentiation and diversified needs of consumers.In
terms of refrigerator products, the frozen preservation technology of “zero impact” and “micro-freezing”, the
independent research and development of core technologies such as water molecule activation preservation
technology, comprehensive thin GLS integration technology, and MCN+ clean taste preservation technology have
led the refrigerator industry to return to the home field of preservation and fully enter the era of thin and
long-lasting clean taste. In terms of washing machine products, through the development of the three black
technologies of the inner cylinder cone expansion technology, the oblique angle stabilization technology, and the
cloud disk condensation technology, the "thin", "large" and "simple" industry business cards for washing
machines have been created, and provide a new embedded experience solution for users. Regarding
air-conditioning products, we have been adhering to the product concept of "good sleep + good air + good
comfort", focusing on quality, experience, and health for product upgrades. Strictly control quality in terms of
comfort and reliability indicators, create a brand experience of “extremely quiet, extremely economical, and
extremely intelligent” for air conditioners, and carry out layout around the three core functions of “fresh air,
self-cleaning, and dust-free” product portfolio. In terms of kitchen & bathroom and small household appliances,
the company focused on building an influential brand of water ecological appliances and operation services,
intensified the drinking water products, and researched and developed the integration of drinking water series
products with refrigeration and household fields to provide users with better products and services. In terms of
biomedical treatment, adhered to the development strategy of "based on the relevant diversification in the
biomedical field", focused on the three major business strategic layouts of life science, smart cold chain and
family health, and continued to promote product innovation, research and development, and quality improvement.
In terms of high-end intelligent product development, the company promoted product innovation through
continuous technological innovation. In recent years, the company has successively released CHiQ intelligent
series products, “M-Fresh” refrigerators, “M-Fresh” full-thin series products, “M-Fresh” second generation series
refrigerators, “very-clean” series of refrigerator products, mother-infant refrigerator; “very-thin” series of washing
16
CHANGHONG MEILING CO.,LTD. Annual Report 2021
machine, AC thermostatic fresh air cabinet unit, fully dust-free hangers & sleep hangers, shared AC in the
guest-dining room“, intelligent voice tea-bar machine and intelligent electric water heater etc, created three brand
business cards, i.e. “Meiling Fresh” and “Meiling Thin”, and “Meiling Clean” through the introduction of the
aforementioned high-end intelligent products, which not only met market demand in a timely manner, but also
enriched and enhanced the brand image.
Promoting the remodeling of brand ability through the continuous upgrading of products, Meiling will realize a
young, international, professional and intelligent brand image. Through gradual construction of the ideas of
Wonderful Start Point, Wonderful Life Circle and Wonderful Ecology Circle, Meiling has become a
people-oriented artist specializing in white appliances, a smarter scientific expert and a more reliable house
keeper.
(2) Product capacity
For more than 30 years, the company has been focusing on the refrigeration industry, and has developed a number
of different models of refrigerators, mainly including the "M fresh" first generation series of fresh-keeping
refrigerators carrying water molecule activation preservation technology, the "M fresh"second generation series of
fresh-keeping refrigerators with "zero shock" and "slight freeze" fresh-keeping technology, "Star" series mother
and infant refrigerators, "Very Clean" series fresh-keeping and cleaning refrigerators, comprehensive thin product
extension 503 series refrigerators, CHiQ series high-end intelligent refrigerators and air conditioners, 0.1℃
double precision refrigerator with inverter, North American air cooling products, Australian Frozen 4-Star
Products, New European E-class Products, vertical display cabinets, DW-HL550 independent double temperature
zone double control ultra-low temperature low temperature freezer, etc. In particular, the "M Fresh" second
generation series of fresh-keeping refrigerators accurately realize preservation - 3.5℃ through zero shock and
slight freeze technologies, bringing users three fresh-keeping experience, i.e. fresh meat preservation for 33 days,
zero loss of nutrition, cutting meat without waiting. The "Very Thin" direct drive roller series washing machines
developed by the company adopt innovative technology magnetic suspension ultra-thin DD motor, realizing the
product philosophy of "direct drive is cleaner", the main performance indicators such as noise and energy
efficiency have reached the advanced level at home and abroad. Deeply dug into the industry subdivision track,
the shared air conditioner for the living room and dining room adopted the far-to-near soft and comfortable wind
technology, of which the far wind is 20 meters away and the near wind is soft, allowing the living room and
dining room to share a warm space. The company was committed to accelerating the integration of the Internet of
Things and other technologies with biomedical treatment, created the industry's first dual-engine inverter
technology, and successively released the third-generation dual-engine inverter M-Twindrive series ultra-low
temperature freezer, strongly empowering storage safety. In addition, DW-HL680 and DW-HL850, with its
unique advantages of "dual independent systems, independent monitoring, extreme uniformity, frequency
conversion & energy saving, rapid cooling, 7 layers of protection, three-dimensional heat preservation, and
10-inch large screen", realized the "intelligent storage" and "intelligent acquisition" of samples, and led a new era
of intelligent samples storage. In short, the company was committed to creating a series of products with unique
value through continuous technological innovation and iteration, and bringing new consumption experience to
17
CHANGHONG MEILING CO.,LTD. Annual Report 2021
consumers.
The Company owned advanced development and quality assurance systems, passed management system
certification of ISO9001, ISO14001 and ISO45001. Product quality has been quality assurance and product
performance is reliable. At the same time, the company has authoritative certifications including “national-level
technology center”, ”national-level industrial design center”, “national-level intellectual property demonstration
enterprise” as strong guarantees. In terms of technical research, it is committed to applying basic technology
research and industrialization transfer, and has established a technical strategic plan with “intelligence, frequency
conversion, simulation, fresh-keeping” as core technologies, and “refrigeration, new material and foam” as key
technologies. In terms of product development, based on the technological research results and consumption
upgrade requirements, updated the annual product planning and development outline, increasingly upgraded the
product structure, continued to increase the development of mid-to-high-end products with characteristic of
thin-wall, air-cooling, large-volume, frequency conversion, intelligence, simulation, smart cleaning, odour clean,
sterilization, dust removal, silent and developed competitive core products. At the strategic level of the company,
continued to adhere to the core idea of “intelligent strategy, productism”, and promoted the company's product
transformation, technological innovation, and industry leadership by advancing the subsequent research and
development, promotion and technical update of intelligent and frequency conversion products.
(3) Operation capacity
The Company continues to carrying out bench-marking activities to improve the operation and management
standards and competitiveness of the Company. At the same time, the internal management capability has been
continuously improved by continuing to carry out the improvement work in "human efficiency, money efficiency
and material efficiency". The company established a hierarchical sharing system with clear goals, quantitative
indicators, performance-oriented performance appraisal and incentives to activate internal productivity. Taking
value chain management as the main line, continued to carry out value creation work, and enhanced the
company's competitiveness. At the same time, continuously improved the internal control system and improved
the ability to prevent risks.
(4) Marketing ability
The Company has established a relatively complete sales network and service system, which can provide users
with high-quality services covering all categories of white goods. The domestic market is actively accelerated to
realize the marketing transformation from product line-oriented sales management to channel- and user-oriented
business services, from single-category marketing to full-category marketing, quickly building an operation
management system with reasonable commercial inventory management as the core and a value management
system core with terminal retail price; through determined bench marking match, achieved products leading and
efficiency improvement and builds the capability for marketing system and development potential for long period
of time. In overseas markets, the company increased the investments in overseas marketing agencies, research and
development bases, production bases, etc., developed the market actively and cooperated with internationally
renowned household appliance brands and distributors, continued to optimize the customer structure and enhance
the product structure, accelerated the overseas branding, improve overseas brand awareness, in counter with the
18
CHANGHONG MEILING CO.,LTD. Annual Report 2021
overseas market segments, tailored marketing strategy to promoting the expanding driven by marketing.
IV. Main Business Analysis
(1) Refrigerator (cabinet) industry
In 2021，the company further strengthened the operation and management system centered on reasonable
commercial inventory. By driving the transformation of the marketing organization and improving the delivery
efficiency, the turnover of commercial inventory was greatly improved, and the number of days of commercial
inventory turnover decreased by 7 days on a year-on-year basis. By improving the flexible production capacity of
manufacturing, the manufacturing efficiency of refrigerator and freezer was improved.
Through the close combination of technology empowerment and product application, the company promoted the
in-depth research and capability improvement of core technologies, key technologies and hard-core technologies,
and the competitiveness of refrigerator and freezer products has been continuously strengthened. Focusing on the
product strategy of "high-quality products + popular products", the company continued to promote the "thin, fresh,
beautiful and intelligent" product layout of refrigerators, and further enhanced product competitiveness through
"precise positioning, strengthening hierarchy, revitalizing bases, and channel customization", and promoted
benign operation of products; strengthened the research on core & key technologies, the "zero shock" and "soft
freeze" technologies carried by "M Fresh Second Generation" new products once again lead the industry's
fresh-keeping technology, brought greater value to consumers and achieved good market benefits .
During the reporting period, the company set up the refrigerator cabinet business headquarters, focusing more on
core industries, optimizing the platform and improving efficiency. To be a solid product management body, let the
management body become the internal and external driving engine. Carried out the promotion of the whole value
chain benchmarking, achieved initial effects, and improved the profit. The implementation of quality
benchmarking has reduced the SCR and return and exchange rates; the implementation of R&D benchmarking has
shortened the development cycle and improved the success rate of new products. Refrigerator (cabinet) business
of the Company achieved revenue of approximately 7.725 billion yuan, an increase of 5.46 % on a y-o-y basis
during the reporting period.
(2) Air-conditioning industry
In the domestic market, focused on "regional focusing, benign operation, and model innovation", and adhered to
benchmarking; focused on standardized operation and management, reduced fees and improved efficiency;
continued to promote the construction of key regions and partner innovation models. Under the premise of
controllable value chain, carried out dislocated competition of online products to improved profit and loss,
accelerated offline channel transformation, focused on products with unique value, and activated the team. In the
overseas markets, upgraded sales channels and took efficiency as the starting point to reduce cost, improved
manufacturing efficiency and enhanced logistics capacity building, and continued to build its own R&D and
derivative capabilities. Air-conditioning business of the Company achieved revenue of approximately 6.867
billion yuan, an increase of 48.67 % on a y-o-y basis during the reporting period.
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CHANGHONG MEILING CO.,LTD. Annual Report 2021
(3) Washing machine industry
The company insisted on differentiated and dislocated competition in washing machine industry, and optimized
and adjusted the product structure. In the domestic market, grasped the market consumption trend, adhered to the
product and market leading strategy, the company launched the variable frequency direct drive drum with
"magnetic levitation" technology to further enhance product competitiveness. In the foreign markets, carried out
product innovation and research and development according to the living habits and using habits of different
countries, and strengthened the development of overseas markets. Washing machine business of the Company
achieved revenue of approximately 669 million yuan, an increase of 43.31 % on a y-o-y basis during the reporting
period.
(4) Kitchen & bathroom, small appliances
Focused on the core strategy of "water ecology" to refine the product layout and R&D, and strengthened the
products of drinking water, tea bar and gas hot water. According to the needs of users, the company carefully
cultivated the industry field, increased investment in R&D and maintained innovation vitality. At the same time, it
strengthened the integration of product functions, and launched the industry-leading intelligent voice tea bar
machine, instant hot tea bar machine and gas heating water heater with different bath modes. Kitchen & bathroom,
small appliances business of the Company achieved revenue of approximately 1.33 billion yuan, an increase of
16.37 % on a y-o-y basis during the reporting period.
(5)Biomedical
Focused on the strategic layouts for three major businesses of life science, smart cold chain and family health,
strengthened the depth of research and development, improved the research and development system, optimized
the research and development process, and formed sustainable technological innovation capabilities. Based on
market demand, went deep into fine management, promoted process standardization construction, and optimized
planning and scheduling management to improve productivity efficiency and product quality; adhered to market
orientation, improved system response capabilities, attracted outstanding talents, built talent training systems,
optimized management system construction, and improved operational efficiency. Biomedical business of the
Company achieved revenue of approximately 441 million yuan, an increase of 25.15 % on a y-o-y basis during the
reporting period.
(ii) Revenue and cost
1. Constitute of operation revenue
In RMB
2021 2020 Increase/de
Ratio in operation Ratio in operation crease y-o-y
Amount Amount
revenue revenue (+,-)
Total operation
18,032,957,501.44 100% 15,388,050,229.67 100% 17.19%
revenue
20
CHANGHONG MEILING CO.,LTD. Annual Report 2021
Manufacture of
household 17,331,645,754.46 96.11% 14,154,240,737.32 91.98% 22.45%
appliances
Other business 701,311,746.98 3.89% 1,233,809,492.35 8.02% -43.16%
Refrigerator, freezer 8,165,836,380.29 45.28% 7,677,640,685.10 49.89% 6.36%
Air-conditioning
6,867,304,359.29 38.08% 4,619,288,893.44 30.02% 48.67%
(AC)
Washing machine 668,996,516.82 3.71% 466,805,675.50 3.03% 43.31%
Small appliance and 1,330,315,557.62 7.38% 16.37%
1,143,165,497.06 7.43%
kitchen & toilet
Other products 299,192,940.44 1.66% 247,339,986.22 1.61% 20.96%
Other business 701,311,746.98 3.89% 1,233,809,492.35 8.02% -43.16%
Domestic 13,212,985,690.01 73.27% 10,398,533,564.21 67.58% 27.07%
Foreign 4,819,971,811.43 26.73% 4,989,516,665.46 32.42% -3.40%
Direct sales 701,311,746.98 3.89% 1,233,809,492.35 8.02% -43.16%
Distribution 17,331,645,754.46 96.11% 14,154,240,737.32 91.98% 22.45%
2. The industries, products, regions or sales model accounting for over 10% of the Company’s operating
revenue or operating profit
√Applicable □ Not applicable
In RMB
Increase/decrea
Increase/decrease Increase/decrease
Gross se of gross
Operating revenue Operating cost of operating of operating cost
profit ratio profit ratio
revenue y-o-y y-o-y
y-o-y
According to industries
Manufacture of
household 17,331,645,754.46 15,273,131,473.38 11.88% 22.45% 30.44% -5.39%
appliances
According to products
Refrigerator,
8,165,836,380.29 6,945,620,033.21 14.94% 6.36% 12.96% -4.98%
freezer
Air-conditioning 6,867,304,359.29 6,364,053,615.99 7.33% 48.67% 56.99% -4.91%
21
CHANGHONG MEILING CO.,LTD. Annual Report 2021
(AC)
Small appliance
and kitchen & 1,330,315,557.62 1,154,251,783.53 13.23% 16.37% 20.48% -2.96%
toilet
According to region
Domestic 12,521,627,236.27 10,779,025,843.09 13.92% 36.48% 45.41% -5.28%
Foreign 4,810,018,518.19 4,494,105,630.29 6.57% -3.41% 4.60% -7.15%
According to sales model
Distribution 17,331,645,754.46 15,273,131,473.38 11.88% 22.45% 30.44% -5.39%
Under circumstances of adjustment in reporting period for statistic scope of main business data, adjusted main
business based on latest one year’s scope of period-end
□ Applicable √ Not applicable
3. Income from physical sales larger than income from labors
√ Yes □ No
Increase/decrease
Industries Item Unit 2021 2020
y-o-y (+,-)
10 thousand 2,291.75 9.84%
Sales volume 2,086.39
pieces/set
Manufacture of
10 thousand 2,255.60 7.23%
household Production 2,103.47
pieces/set
appliances industry
10 thousand 95.14 -27.53%
Inventory 131.29
pieces/set
Reasons for y-o-y relevant data with over 30% changes
□ Applicable √ Not applicable
4. Performance of the material sales contract and major procurement contracts that signed by the
Company up to the reporting period
□ Applicable √Not applicable
5. Constitute of operation cost
Industry classification
In RMB
2021 2020
Increase/decrease
Industries Item Ratio in Ratio in
Amount Amount y-o-y (+,-)
operation cost operation cost
22
CHANGHONG MEILING CO.,LTD. Annual Report 2021
Manufacture of
household Raw material 13,942,721,443.16 91.29% 10,753,506,155.27 91.84% -0.55%
appliances
Note: nil
6. Whether the changes in the scope of consolidation in Reporting Period
√ Yes □ No
More details can be seen in the report “VII. Changes in the scope of the merger” and “VIII. Interests in other
entities” of “Section X Financial Report”
7. Major changes or adjustment in business, product or service of the Company in Reporting Period
□ Applicable √ Not applicable
8. Major sales client and main suppliers
(1) Major sales client of the Company
Total top five clients in sales (RMB) 9,460,098,700.85
Proportion in total annual sales volume for top five clients 52.46%
Proportion of the related parties’ sales in total annual sales volume for
37.71%
top five clients
Information of top five clients of the Company
Serial Name Sales (RMB) Proportion in total annual sales
1 Client I 6,500,770,811.78 36.05%
2 Client II 2,031,064,265.55 11.26%
3 Client III 382,002,588.01 2.12%
4 Client IV 298,759,989.33 1.66%
5 Client V 247,501,046.18 1.37%
Total -- 9,460,098,700.85 52.46%
Other notes of main clients
□ Applicable √ Not applicable
(2) Main suppliers of the Company
Total purchase amount from top five suppliers (RMB) 3,089,801,023.03
Proportion in total annual purchase amount for top five suppliers 21.99%
Proportion of related party’s purchase in total annual purchase amount for top
15.91%
five suppliers
23
CHANGHONG MEILING CO.,LTD. Annual Report 2021
Information of top five suppliers of the Company
Serial Name Sales (RMB) Proportion in total annual purchase
1 Supplier I 853,794,687.69 6.08%
2 Supplier II 722,264,897.13 5.14%
3 Supplier III 536,878,449.60 3.82%
4 Supplier IV 420,239,492.52 2.99%
5 Supplier V 556,623,496.09 3.96%
Total -- 3,089,801,023.03 21.99%
Other notes of main suppliers
□ Applicable √Not applicable
(iii) Expenses
In RMB
Increase/dec
2021 2020 rease y-o-y Note of major changes
(+,-)
According to the “Q&A of the Rules Implementation”,
Sales expense 1,364,640,404.75 1,945,803,799.56 -29.87% relevant expenses as transportation costs are transferred
to “Operating costs”
Administrativ Due to the increase in salary and social security expenses
333,588,775.37 280,245,684.56 19.03%
e expense during the reporting period
Financial Due to the decrease in foreign exchange losses during the
-58,402,782.80 -5,529,984.84 -956.11%
expense reporting period
Due to the increase in R&D investment during the
R&D expense 465,891,096.09 380,638,922.91 22.40%
reporting period
(iv) Investment in R&D
√Applicable □Not applicable
Expected impact on the future
Projects Purpose Progress Goals to be achieved
development of the Company
Advanced the intelligence standards for
Updating the intelligent
Next-generation smart Improved the intelligence refrigerator products, increasing the price
service for refrigerator
refrigerator platform Completed standards for refrigerator and and profit amid the medium and high-end
and solve the pain points
technology enhanced the user experience products, enhanced the image of intelligent
for users
brand of the Company
Next-generation distribution Solve the problems on 50% reduction in time for Improving the distribution success for
Completed
technology for the smart wifi distribution in terms network distribution appliances such as intelligent refrigerator
24
CHANGHONG MEILING CO.,LTD. Annual Report 2021
terminal of multiple-steps, complex and washing machine, heighten products
interaction and time competitiveness and user satisfaction
duration
Optimized the dimensionality
Constructed the data
and reporting frequency of
collection and analysis Laying the groundwork for Big Data
Operational data collection the operation data for
platform with purpose of application, which will play a practical
& analysis platform products, completed the link
generating values for Completed value in user stickiness of the APP, quality,
construction for the smart verification of data
R&D, after-sales, R&D and planning, and bring the
terminal collection, storage, analysis
planning and quality of improvement in product competitiveness
and application of the
the products
platform
R& D on the technology of Completed
Develop a refrigerator The fresh meet can be Better to meet the needs of users and
frost-free refrigerator with and the
with constant temperature preserve for 33 days without enhance the market competitiveness of
constant temperature product is
micro-freezing room thawing refrigerators
micro-freezing room available
Research on the Sterilization rate of 90% or
conditions of food storage Completed more, antibacterial rate of
R&D of the mother-infant for mothers and babies, and the over 90%, freshness Enrich the function of Meiling products
refrigerator developed a special product is preservation effect vitamin C and meets the needs of users
refrigerator for mothers available retention rate ≥90%, the
and babies chlorophyll retention rate
≥85%
Completed
the research
on technical
Generating the method for
Reducing noises in all plans and Improving overall noise level of the
R&D of the noise control noise reduction mutation,
categories of the test frost-free refrigerators, cutting the
technology for refrigerator reducing the noise for typical
refrigerators, improving verification, complaint on noises and enhance the
in whole cooling cycle products during the whole
the user experience and entered market competitiveness
cooling cycle
the stage of
market
promotion
Forwarding the excavation of user needs
Solving the users pain
Go to the and improving the R&D & innovation
points in guesting-dining
mass Completed the development capability, expanding product usage
AC, realized the function
Develop new cabinet for production of a new cabinet platform for scenarios, enhance the additional value of
of faring winds and soft
CHiQ serials at the end of guesting-dining AC products while achieve the appearance and
winds to enhance the user
2021 functional differentiation, strength the
experience
sustainable competitiveness of the brand
Makes the smoke machine Research into a Completed Temperature sensing To achieved the selling points of
and stove react in chain technology that enables the technology allows the hood differentiated products and enhances the
25
CHANGHONG MEILING CO.,LTD. Annual Report 2021
through temperature sensing the smoke machine and development to adjust the gears price premium under the technology,
technology stove react in chain on May 17, automatically and react in meanwhile, it also meets the needs of
through temperature 2021 and chain with the stove, and not smoking degreasing for users and won the
sensing technology. To conducted a limited to any brand of customer praise. And it serves as a good
adjust the air volume of product cookers. model for the Company to increase the
the hood by detecting the launch. R&D investment in the future.
change pattern of
temperatures in the pot
Research into a gas
cooker with heavy fire,
the core technology is a Completed
multi-burner system: the
high-efficiency air intake development
A kind of stove has 7 cavity Zero-second start, Create a special product to improve the
and better premixing on May 27,
and multi-stove with heavy instantaneous ignition and image of the Company’s products and
effect; 7 independent 2021 and
fire multi-burner 7 cavity burner upgrading the products
splitter on the hear makes conducted a
the flame contact area product
with bottom of the pot is launch.
larger and the fire is more
powerful
With the arrival of the era
of internet of everything,
on basic water heating
function, adding WiFi
intelligent control to the
electric heater, and by The project
Enable the users to better
using the closed loop of was
operate electric heater, and Accumulate the living habits from users,
human-cell phone-electric completed
improve the experience of improve brand’s reputation for smart home
Changhong intelligent cloud heater, improving the on June 23,
using the heater in process of appliances, and provide reference for
electric heater user’s water experience 2021 and the
use, shorten the heating time upgrading and optimizing the smart
and efficiency & quality product
and improve the efficiency of connection in whole house in the future
of life. Intelligence of the launch was
life
electric heater is conducted
integrated into the
intelligent cloud, achieved
the interconnection in the
whole house through
intelligent cloud.
Develop a water purifier Complete Flow rate of the pure water Performance of the product reaches the
to solve the current the approval reached 2.5L/min or more; forefront of the industry and enhancing the
High-flux intelligent water
common problems as low on July 15, water efficiency achieved the status of the water purification products in
purifier with
flow and not knowing 2021 and on national first-class water the industry; notifying the consumers to
when to replace the November efficiency; analyzed the water replace the cartridge by core reminder,
26
CHANGHONG MEILING CO.,LTD. Annual Report 2021
cartridge, the 28, 2021 the consumption intelligently and increase secondary service income from
high-performance water product reminder the core using the special cartridge of the Company
purifier is meets the needs launch was replacement.
of high-flow during usage conducted
and reminder users to
change the core
intelligently according to
the condition of use
Realizing the heating Resonate with human body
Project
technology based on infrared temperature and enhance the
R&D the heating products completed in Increase the market share of electric
generation through polymer activity of water molecules in
for northeast market October heaters in northern
coating on micro-crystalline the body to better absorb heat
2021
glass substrates radiation energy
Develop a tea bar machine Completion
control by voice instead of the
R&D on voice-recognition controlling by users, and development Voice recognition success Improving the product differentiation and
tea bar machine enhance the product and launch rate of over 95% profitability
differentiation and in March
competitiveness 2021
Technology development of
Market demand of
the ground source heat pump Completed Mass-production Growth in sales revenue and profits
coal-to-electricity
products
Technology development of Market demand of the
the water machine and water coal-to-electricity and Completed Mass-production Growth in sales revenue and profits
heater retailing
Technology development of Market demand of
Completed Mass-production Growth in sales revenue and profits
the heaters products coal-to-electricity
Technology development of Market order
Completed Mass-production Growth in sales revenue and profits
the home AC products requirements
Some
projects are
Technology development of Market order demand and completed Some products have been
Growth in sales revenue and profits
the special AC products future market expectations and other mass-produced
are under
development
Distribution technology Continuous optimization
Add the new BT distribution Ensuring the the Company remains at the
application of the Wi-Fi on on the second-generation
Completed and optimized single Wi-Fi leading edge of the industry in distribution
third-generation intelligent distribution network
distribution network technology
white goods technology
R&D personnel
2021 2020 Change proportion
27
CHANGHONG MEILING CO.,LTD. Annual Report 2021
Number of R&D personnel
1312 1431 -8.32%
(person)
Proportion of R&D personnel 13.04% 19.62% 6.58 percentage points down
Educational background —— —— ——
Undergraduate 844 824 2.43%
Masters 99 101 -1.98%
Age composition —— —— ——
Under 30 337 313 7.67%
30~40 473 585 -19.15%
Investment of R&D
2021 2020 Change proportion
Investment for R&D (RMB) 623,553,400.81 556,253,003.33 12.10%
R&D investment/Operating
3.46% 3.61% 0.15 percentage points down
revenue
Capitalization of R&D
185,278,347.99 134,284,644.90 37.97%
investment (RMB)
Capitalization of R&D
29.71% 24.14% 5.57 percentage points up
investment/R&D investment
Reasons and effects of significant changes in composition of the R&D personnel
□Applicable √ Not applicable
Reasons for significant changes in the proportion of total R&D investment in operating revenue from the previous year
□Applicable √ Not applicable
Reasons and rationality of the major changes of the capitalization rate of R&D investment
√Applicable □ Not applicable
The Company paid much attention to the technology development and increased the investment in R&D during the reporting period
(v) Cash flow
In RMB
Item 2021 2020 Increase/decrease y-o-y (+,-)
Subtotal of cash in-flow from operation
activity
19,122,732,939.87 16,120,150,110.69 18.63%
Subtotal of cash out-flow from
operation activity
18,961,809,681.77 14,716,633,888.23 28.85%
Net cash flow from operation activity 160,923,258.10 1,403,516,222.46 -88.53%
Subtotal of cash in-flow from
investment activity
2,089,320,180.25 1,171,001,295.31 78.42%
28
CHANGHONG MEILING CO.,LTD. Annual Report 2021
Subtotal of cash out-flow from
investment activity
2,071,396,229.61 1,801,306,139.22 14.99%
Net cash flow from investment activity 17,923,950.64 -630,304,843.91 102.84%
Subtotal of cash in-flow from financing
activity
1,700,242,527.68 2,049,754,910.57 -17.05%
Subtotal of cash out-flow from
financing activity
2,450,727,546.66 1,748,483,992.86 40.16%
Net cash flow from financing activity -750,485,018.98 301,270,917.71 -349.11%
Net increased amount of cash and cash
equivalent
-585,334,883.53 1,039,722,339.59 -156.30%
Main reasons for y-o-y major changes in aspect of relevant data
√Applicable □ Not applicable
Major changes in net cash flow from operation activity mainly because the cash paid for good procurement and received services
during the period increased from a year earlier.
Major changes in net cash flow from investment activity mainly because the cash received from the recovery of investment increased
from a year earlier.
Major changes in net cash flow from financing activity mainly because the cash paid for debt services increased from a year earlier.
Explanation on reasons for the significant differences between the net cash flow arising from operation activities in the Period and
net profit of last year
√Applicable □ Not applicable
Mainly because at end of the period, inventory and operating payable decreased from the beginning of the year.
V. Analysis of the non-main business
√Applicable □ Not applicable
In RMB
Whether be
Ratio in
Amount Note sustainable
total profit
(Y/N)
Gains on delivery of the forward foreign exchange contracts
Investment income 128,963,968.59 144.07% N
in the period
Gains/losses from fair Losses on the forward foreign exchange contracts in the
value changes
-3,133,939.42 -3.50% N
period
Provision for decline in value of inventories and impairment
Asset impairment -57,484,042.03 -64.22% N
of intangible assets in the period
Non-operation income 10,022,053.88 11.20% Income from fines received in the period N
Non-operation 5,154,068.50 5.76% Loss on retirement of the non-current assets in the period N
29
CHANGHONG MEILING CO.,LTD. Annual Report 2021
expenditure
Credit impairment Provision for impairment loss on account receivable in the
-20,983,896.93 -23.44% N
losses period
VII. Analysis of assets and liability
(i) Major changes of assets composition
In RMB
Year-end of 2021 Year-begin of 2021 Ratio
Ratio in Ratio in changes( Note of major changes
Amount Amount
total assets total assets +,-)
Mainly due to the decrease in net cash flow
Monetary fund 5,938,823,396.21 39.10% 6,594,786,789.98 40.93% -1.83% arising from financing activities in the
period
Mainly due to the increase in operation
Account receivable 1,440,874,691.28 9.49% 1,130,275,780.66 7.01% 2.48%
revenue in the period
Mainly due to the increase in sales in the
Inventory 1,356,357,419.80 8.93% 1,715,354,951.43 10.65% -1.72%
period
Investment real
estate
53,149,934.45 0.35% 53,888,462.00 0.33% 0.02%
Long-term equity Mainly due to the increase in earnings from
investment
86,631,660.53 0.57% 76,982,822.38 0.48% 0.09%
investment for joint venture in the period
The increase in percentage due to the
Fix assets 2,303,122,699.92 15.16% 2,391,859,440.31 14.84% 0.32%
decline of total assets in the period
Construction in The construction in progress transferred to
progress
98,469,862.45 0.65% 60,775,088.96 0.38% 0.27%
fixed assets declined in the period
Resulted by the implementation of new
Right-of-use assets 45,367,918.31 0.30% 9,818,834.44 0.06% 0.24%
leasing standards in the period
Due to the repayment of short-term
Short-term loans 622,874,652.77 4.10% 1,336,209,050.55 8.29% -4.19%
borrowings in the period
Contract The increase in percentage due to the
515,004,115.23 3.39% 522,550,891.28 3.24% 0.15%
liability decline of total assets in the period
Due to the repayment of long-term
Long-term loans 168,000,000.00 1.11% 188,231,439.30 1.17% -0.06%
borrowings in the period
Resulted by the implementation of new
Lease liability 33,225,912.15 0.22% 4,783,483.43 0.03% 0.19%
leasing standards in the period
Foreign assets account for a relatively high proportion
□Applicable √Not applicable
(ii) Assets and liability measured by fair value
30
CHANGHONG MEILING CO.,LTD. Annual Report 2021
√Applicable □ Not applicable
In RMB
Devaluat
Accumulativ Amount
ion of
Changes of fair e changes of of Sales in
Amount at the withdra Amount at end
Items value gains/losses fair value purchase the Other changes
beginning period wing in of the period
in this period reckoned in the period
the
into equity period
period
Financial assets
1.Trading financial assets
(derivative financial assets 47,242,339.07 -29,245,252.88 17,997,086.19
excluded)
2. Receivable financing 1,632,388,702.83 175,720,598.73 1,808,109,301.56
3. Other non-current
548,148,931.34 33,831,509.36 581,980,440.70
financial assets
Subtotal of financial assets 2,227,779,973.24 4,586,256.48 175,720,598.73 2,408,086,828.45
Above total 2,227,779,973.24 4,586,256.48 175,720,598.73 2,408,086,828.45
Financial liabilities 4,584,076.51 7,720,195.90 12,304,272.41
Other changes:
Other changes in the financing of accounts receivable were that the company reclassified the bills receivables that both aimed at
collecting contractual cash flow (collection) and selling (endorsed or discounted) into accounts receivable financing during the
current period.
Whether there have major changes on measurement attributes for main assets of the Company in report period or
not
□Yes √ No
(iii) Assets right restricted ended as reporting period
Ended as the reporting period, the Company has no major assets been closed down, detain, freeze or pledge and
guarantee. As for other assets have restriction on rights found more in relevant content of “60. Assets with
restricted ownership or use rights” in “VI. Note of consolidate financial statement” carried under Section X.
Financial Report
VII. Investment analysis
(i) Overall situation
√Applicable □ Not applicable
Investment in the same period of last year
Investment in the reporting (RMB) Changes
( RMB)
31
CHANGHONG MEILING CO.,LTD. Annual Report 2021
50,000,000.00 662,169,149.17 -92.45%
(ii) The major equity investment obtained in the reporting period
√Applicable □ Not applicable
32
CHANGHONG MEILING CO.,LTD. Annual Report 2021
In RMB
Whe
ther
Ter Date of Index of
Nam Metho Capi invo
m of Status as of Expect Current disclosure disclosure
e of d of Amount of Shareholdi tal Type of lved
Principal business Partners inve the balance ed investment profit (if (if
inve invest investment ng ratio sour products in a
stme sheet date return and loss applicable applicable
sted ment ces laws
nt ) )
uit(
Y/N)
Research and sales of the household electric appliances,
non-electric household appliances, gas stove, gas water heaters,
Hefe Ningbo
gas boilers, fast heating electric water heater (electric heating
i Honglin
wall-hung furnace), heat accumulating type series electric heaters, Contributed
Cha g
direct heating series electric heater; kitchen and toilet furniture, R&D and investment Juchao
ngho Enterpri
audio-visual equipment, radio and television equipment, sales of of 35 Website:htt
ng se
computers, communications and other electronic equipment , household million yuan p://Juchao
Meil Newly Manage Lon Not
interior decoration materials, general equipment, water Own appliances, in the Website
ing establi 35,000,000 70% ment g-ter applic 21,255,622.60 N 2020-12-12
purification equipment, luggage, personal care and personal fund kitchen period. All (www.cninf
Life shed Partners m able
hygiene items; health care products, massage equipment and appliances and capital o.com.cn)(
Appl hip
hardware department; software and information technology small home contribution Notice No.:
ianc (Limited
services; business management consulting services; sales of appliances has been 2020-097)
es Partners
second and third types of medical equipment ; goods and completed
Co., hip)
technology import and export. (the import & export of goods and
Ltd.
technologies prohibited by the state or involving administrative
examination and approval is excluded)
Anh Class II medical equipment production; Class III medical Lon R&D, Remaining 5 Juchao
Newly Not
ui equipment production; Class III medical equipment operation; Own
establi 10,000,000 63.2683% N/A g-ter production million yuan
applic -1,299,892.14 N 2019-04-20
Website:htt
Tuox Class III medical equipment leasing; Electrical installation fund
m and sales of was p://Juchao
shed able
ing services; Labor dispatch services (projects subject to approval the cryogenic contributed Website
33
CHANGHONG MEILING CO.,LTD. Annual Report 2021
Scie according to law, business activities can only be carried out after refrigeration in the (www.cninf
nce approval by relevant departments); General items: Class I equipment period, and o.com.cn)(
and medical equipment production; Class I medical equipment sales; all capital Notice No.:
Tech Class II medical equipment sales; Smart home consumer contribution 2019-025)
nolo equipment sales; Metal product research and development; Metal has been
gy product sales; Metal surface treatment and heat treatment completed
Co., processing; Non-ferrous metals rolling processing; Metal
Ltd. processing machinery manufacturing; Software development;
note Technology research and development of the Internet of Things;
1 Software sales; Technology services, technology development,
technology consultation, technology exchange, technology
transfer, technology promotion; New car sales; Refrigeration and
air conditioning equipment sales; Refrigeration and air
conditioning equipment manufacturing; Information technology
consulting services; Information system operation and
maintenance services; Internet sales (except for the sale of
products that require licensing); Intellectual property services
(except patent agency services); General cargo warehousing
services (excluding hazardous chemicals and other items that
require approval); Low-temperature warehousing (excluding
hazardous chemicals and other items that require approval);
Repair of special equipment; Import and export of goods; Leasing
of Class II medical equipment; Leasing management services of
small and micro passenger car; Machinery and equipment
leasing; Non-residential real estate leasing; Leasing of land use
right (except for licensing business, can independently operate
projects that are not prohibited or restricted by laws and
regulations).
Anh Class I medical equipment production; Class I medical equipment Newly Own Lon R&D, Contributed Not Juchao
10,000,000 63.2683% N/A -791,720.20 N 2021-3-03
ui sales; Class II medical equipment sales; Smart home consumer establi fund g-ter manufacturing investment applic Website:htt
34
CHANGHONG MEILING CO.,LTD. Annual Report 2021
Ling' equipment sales; Software development; Metal product research shed m and sales of of 10 able p://Juchao
an and development; Metal product sales; Metal surface treatment the medical million yuan Website
Med and heat treatment processing; Non-ferrous metals rolling equipment in the (www.cninf
ical processing; Metal processing machinery manufacturing; period. o.com.cn)(
Equi Technology research and development of the Internet of Things; Notice No.:
pme Software sales; Technology services, technology development, 2021-008)
nt technology consultation, technology exchange, technology
Co., transfer, technology promotion; New car sales; Refrigeration and
Ltd. air conditioning equipment sales; Refrigeration and air
note2 conditioning equipment manufacturing; Information technology
consulting services; Information system operation and
maintenance services; Internet sales (except for the sale of
products that require licensing); Intellectual property services
(except patent agency services); General cargo warehousing
services (excluding hazardous chemicals and other items that
require approval); Low-temperature warehousing (excluding
hazardous chemicals and other items that require approval);
Repair of special equipment; Import and export of goods; Leasing
of Class II medical equipment; Leasing management services of
small and micro passenger car; Machinery and equipment
leasing; Non-residential real estate leasing; Leasing of land use
right (except for licensing business, can independently operate
projects that are not prohibited or restricted by laws and
regulations) Licensed items: Class II medical equipment
production; Class III medical equipment production; Class III
medical equipment operation; Electrical installation services;
Class III medical equipment leasing (Business activities of
projects subject to approval according to law can only be carried
out after approval by relevant departments)
Total -- -- -- -- -- -- -- -- -- -- 19,164,010.26 -- -- --
35
CHANGHONG MEILING CO.,LTD. Annual Report 2021
Note 1: After the deliberation and approval of the 21st session of the 9th BOD of the company, it was agreed that the company's subsidiary company Zhongke Meiling invested 10 million yuan to
invest in the establishment of a wholly-owned subsidiary Anhui Tuoxing Science and Technology Co., Ltd
Note 2: After the deliberation and approval of the 5th session of 10th BOD of the company, it was agreed that the company's subsidiary company Zhongke Meiling invested 10 million yuan to
invest in the establishment of a wholly-owned subsidiary Anhui Ling'an Medical Equipment Co., Ltd.
(iii)The material non-equity investment in the reporting period
√Applicable □ Not applicable
In RMB
Invested Industry
Invest Accrued Actual Accrued Realized
with involved Investment Capita
ment Investment Amount Anticipated Income up to the Reasons for not Reaching the Planned Disclosed Disclosed Index
Project Name fixed in Amount in this l Project Schedule
Meth up to the End of Income End of Reporting Schedule and Anticipated Income Date (if any) (if any)
assets Investmen Reporting Period Source
od Reporting Period Period
(Y/N) t Projects
The
production
The project of capacity of Juchao
Production
“Production base one million During the reporting period, suffer by Website:Juchao
base project
project of annual automatic the capacity climbing and COVID-19 Website
of annual Manufactu
output of 2 million roller washing and comprehensive factors as soaring (www.cninfo.com
output of 2 re of Approximately
Self-b Fund-r washing machine shall prices of bulk materials and 2019-7-9, .cn)(Notice
million Y household 39,282,138.53 114,768,032.63 -62,170,000
uilt aising machines(Phase be formed amortization of depreciation, sales of 2019-7-26 No.:2019-040,
automatic appliances yuan
II) ” has been after this the Company was less than 2019-041,
washing industry
completed during project being expectation, resulting in a loss of the 2019-042,
machines(Pha
the reporting put into project in the period. 2019-043 and
se II) note
period operation 2019-047)
Total -- -- -- 39,282,138.53 114,768,032.63 -- -- -- -- -- -- --
36
CHANGHONG MEILING CO.,LTD. Annual Report 2021
Note : In order to further improve the efficiency of the company’s use of raised funds, after careful study and demonstration, the 24th session of the 9th BOD, the 13th session of the 9th BOS, and
the resolution of the second extraordinary general meeting of shareholders in 2019 approved and agreed that the company shall change the unused raised funds of 120 million yuan from the
sub-project Freezer Intelligent Construction Project of the "Intelligent Manufacturing Construction Project" and put into the "Production base project of annual output of 2 million washing
machines(Phase II) ". Currently, the project was completed in construction.
(iv)Financial assets investment
1. Securities investment
□ Applicable √ Not applicable
The Company had no securities investment in the reporting period.
2.Derivative investment
√ Applicable □ Not applicable
In 10 thousand yuan
Ratio of investment
Relate Whether Amount Amount Amount of reserve amount at Actual
Investment Investment
d related Initial purchased in sales in the for devaluation of period-end in net gains/loss
Operator Type Start date End date amount at amount at
relatio trade or investment the reporting reporting withdrawing (if assets of the es in
period-begin period-end
nship not(Y/N) period period applicable) Company at period
period-end
Financial Forward foreign
N/A N 334,471.07 2020-4-22 2022-12-28 184,610.32 457,956.60 474,558.31 - 156,034.41 32.26% 11,974.21
institution exchange contract
Total 334,471.07 -- -- 184,610.32 457,956.60 474,558.31 - 156,034.41 32.26% 11,974.21
Capital resource Own fund
Lawsuit involved (if applicable) Not applicable
37
CHANGHONG MEILING CO.,LTD. Annual Report 2021
Disclosure date for approval from the Board
2021-3-31
for investment of derivatives (if applicable)
Disclosure date for approval from board of
shareholders for investment of derivatives (if 2021-4-29
applicable)
Risk analysis:
1. Market risk: domestic and international economic situation changes may lead to exchange rate fluctuations, forward foreign exchange transactions are under certain
market risk. Forward foreign exchange business is aiming to reducing impact on corporate profits by foreign exchange settlement and sale prices, exchange rate
fluctuations. The Company will follow up the exchange fluctuation, on the basis of target rate determined from the business, relying on the research of the foreign currency
exchange rates, combined with prediction of consignments, and burdening ability to price variations due to exchange rate fluctuations, then determine the plan of forward
foreign exchange contracts, and make dynamic management to the business, to ensure reasonable profit level.
Risk analysis and controlling measures for 2. Liquidity risk: all foreign exchange transactions are based on a reasonable estimate of the future import and export business, to meet the requirements of the trade
derivatives holdings in the Period (including authenticity. In addition, forward foreign exchange transactions are processed with bank credit, will not affect liquidity of company funds.
but not limited to market risk, liquidity risk, 3. Bank default risk: if cooperative banks collapse within the contract time, the Company will not be able to transact the original foreign exchange contracts with contract
credit risks, operation risk and law risks etc.) price, which leads the risk of income uncertainty. So the Company chose five state-owned banks, the Chinese-funded banks in shareholding enterprise as Everbright Bank,
Industrial Bank and the foreign-funded banks as UOB, OCBC, BEA etc. to conduct the trading of foreign exchange capital. These banks share a solid strength and
management whose failure and the risk of loss may bring to the Company is very low.
4. Operational risk: improper operation of the person in charge of forward foreign exchange transactions may cause related risk also. The Company has formulated related
management system which defines the operation process and responsibility to prevent and control risks.
5. The legal risks: unclear terms based in contract signed with banks for related transactions may lead legal risks when forward foreign exchange transactions are
processing. The Company will strengthen legal review, and choose good bank to carry out this kind of business as to risk control.
Invested derivative products have changes in The Company determines fair value in accordance with the Chapter VII “Determination of Fair Value” carried in the Accounting Standards for Business Enterprises No.22
market price or fair value in the Period, as - Recognition and Measurement of Financial Instruments. Fair-value is basically obtained according to prices offered by bank and other pricing services. While fair-value
for analysis of the fair value of derivatives, of derivatives is mainly obtained according to the balance between prices given by outstanding contracts and forward prices given by contracts signed during the reporting
disclosed specific applied methods and period with bank. The differences are identified as trading financial assets and liabilities. During the reporting period, forward foreign exchange contracts and losses of the
correlation assumption and parameter setting Company is 119.7421 million yuan.
Specific principle of the accounting policy
and calculation for derivatives in the Period Not applicable
compared with last period in aspect of major
38
CHANGHONG MEILING CO.,LTD. Annual Report 2021
changes
Upon inspection, the Company believes that: during the reporting period, the Company carried out its foreign exchange forward deals in strict compliance with the
Shenzhen Stock Exchange Self-Regulatory Guidelines No.1- Standardized Operation of the Listed Companies on main Board , the Articles of Association, Management
Measures on Company Authorization, Management System in relating to Foreign Exchange Forward Deals, and these deals were conducted within the authorization scope
under general meeting and board meeting. The Company conducts no foreign exchange transactions on the purpose of getting profit only, all of the forward foreign
Special opinion on derivative investment
exchange transactions are operates closely related to the routine operation requirement of the Company and based on normal operating and production, which is relying on
and risk control by independent directors
specific business operations with purpose of avoiding the preventing the risks in exchange rate. The forward foreign exchange transactions of the Company are beneficial
to prevent the exchange risks exposed by import and export business and thus met its requirement for operation development. There was no speculative operation, no break
of relevant rules and regulations and relevant business was conducted under corresponding decision-making procedures. Interests of the Company and entire shareholders,
especially minority shareholders, were not prejudiced.
39
CHANGHONG MEILING CO.,LTD. Annual Report 2021
(v) Application of raised proceeds
√ Applicable □ Not applicable
1. Overall application of raised proceeds
√ Applicable □ Not applicable
In 10 thousand yuan
Total raised Ratio of Raised
Cumulative raised Total
Total raised capital capital has cumulative Usage of the retained raised capitals capitals idle
Raising Total accumulative capitals has accumulative
Way Total raised capitals used purpose of uses raised capitals and what is expected to invested with for more
year raised capitals used purpose of uses raised capitals
in Period changed in has purpose of those capitals than two
changed in total unused
Period uses changed years
Construction of the fund-raising
projects have been completed,
remaining fund-raising projects will be
closed subsequently, the spare
fund-raising and balance resulted by
difference between interest income
Non-pub (generated before canceling the
lic specific account for fund-raising
2016 offering 154,073.272276 9,421.530637 116,975.522643 0 42,584.305127 27.64% 6,467.864327 subsequently) and handling fee will be -
of supplemented with the working capital
A-share of the Company permanently for daily
operation and business development.
Found more in the “Note 4. Use
purpose and destination of the raised
funds un-used” under “2. Situation of
committed project of raised proceed in
this section”.
40
CHANGHONG MEILING CO.,LTD. Annual Report 2021
Total -- 154,073.272276 9,421.530637 116,975.522643 0 42,584.305127 27.64% 6,467.864327 --
Explanation on General usage of raised capital
Being deliberated and approved by 1st extraordinary shareholders meeting of 2016 and 17th session of 8th BOD, and verified by the Reply on Private Placement of Hefei Meiling Co., Ltd. (CSRC XK [2016] No.1396)
issued from CSRC, the Company successfully offering 280,858,676 shares (A-stock) to 7 qualified investors, including Sichuan Changhong Electric Co., Ltd. (hereinafter referred as to Sichuan Changhong), with
price of 5.59 yuan/Share and face value of 1.00 yuan. According to the Verification Report XYZH/2016CDA40272 issued by Shine Wing Certified Public Accountants (LLP), total raised fund amounting to
1,569,999,998.84 yuan, less vary issuance changes (tax included) 29,267,276.08 yuan, raised fund amounts to 1,540,732,722.76 yuan.
Ended as 31 December 2021, actually fund of raised used accumulative amounted as 1,169,755,226.43 yuan in total, balance of the account for fund raised counted as 64,678,643.27 yuan (including saving interest
income accumulative amounted as 4,432,960.36 yuan and income from financial product at expiration 41,232,660.81 yuan)
The Company accumulative used the fund raised amounted as 1,169,755,226.43 yuan, the use of purpose including: intelligent construction has 385,768,032.63 yuan in used; R&D ability for intelligence and new
products for intelligent household appliance has 468,105,530.03 yuan in used; smart life project totally used 45,001,600.000 yuan; used in current fund supplementary counted as 270,880,063.77 yuan (including
saving interest of 147,341.01 yuan)
2. Situation of committed project of raised proceed
√ Applicable □ Not applicable
In 10 thousand yuan
Change the Investment Achieve
Major changes
Committed investment project (Y/N) Cumulative progress till Benefit d
Total raised-fund Investment after Date of reach a of project
projects and over-raised (including Invested in the period investment amount till end of achieved in expected
commitment adjustment (1) predetermined state of use feasibility
fund investment partially end of Period-end (2) period-end (3) the Period benefits
(Y/N)
changed) ＝(2)/(1) (Y/N)
Committed investment project
Intelligent manufacturing
(Hefei) project: end of 3,681 N N
Construction of December 2020
intelligent Partial change 39,100.00 39,100.00 3,928.341478 38,576.803263 98.66% Production line for the
manufacturing project annual capacity of 2
-2,547 N N
million washing
machines(Phase II): end
41
CHANGHONG MEILING CO.,LTD. Annual Report 2021
of December 2021
Construction of
intelligent R&D
Not
capability and new
No changes 55,900.00 48,188.658476 5,493.189159 46,810.553003 97.14% End of December 2021 -- applicab N
products development
le
of the intelligent
appliance technology
Not
Change
Intelligent life project 32,000.00 4,500.16 0 4,500.160000 100.00% -- -- applicab Y
completed
le
Not
Supplementary the
No changes 27,073.272276 27,073.272276 0 27,088.006377 100.05% -- -- applicab N
floating capital
le
Subtotal of committed
-- 154,073.272276 118,862.090752 9,421.530637 116,975.522643 -- -- -- -- --
investment project
Investment of the over-raised fund
No over-raised fund in the Period
Payment of bank loans
-- -- -- -- -- -- -- -- -- --
(if applicable)
Supplementary the
working capital (if -- -- -- -- -- -- -- -- -- --
applicable)
Subtotal of over-raised
-- -- -- -- -- -- -- -- -- --
fund investment
Total -- 154,073.272276 118,862.090752 9,421.530637 116,975.522643 -- -- -- -- --
Conditions and reasons of failure to meet schedule or predicted income (by specific
Found in Note 1
projects)
Description of major changes in project feasibility ”Found more in the “3.Change of the raised funds ” in this section
42
CHANGHONG MEILING CO.,LTD. Annual Report 2021
Amount, use of purpose and usage progress of the excessive raised fund Not applicable
Change of the implementation location of project with investment of raised fund Not applicable
Adjustment of the implementation ways of project with investment of raised fund Not applicable
Early investment and replacement with the raised fund Found in Note 2
Temporary replacement of the working capital with idle raised funds Not applicable
Amount and reasons of cash surplus in raised funds during implementing the project Found in Note 3
Use purpose and destination of the raised funds un-used Found in Note 4
Relevant information with raised funds concerned are disclosed in a timely, true, accurate and complete manner, there is no violation
Problems or other circumstances in the use of raised funds and its disclosure
in the deposit, use, management and disclosure of the raised funds.
43
CHANGHONG MEILING CO.,LTD. Annual Report 2021
Note1: Implementation of fund-raising projects
1.“Construction of intelligent manufacturing project ”:
(1) the original planning construction period of “construction of intelligent manufacturing (Hefei) project” is 3-year, and with
purpose of regulating the use of raised funds, the resolution of the 20th session of the 9th BOD, the 11th session of the 9th Supervisory
Committee of the Company and resolution of AGM of 2018 passed and agreed to postpone the date that the project achieves the
scheduled serviceable condition to the end of December 2021. Up to now, the "construction of intelligent manufacturing (Hefei)
project" has reached its intended use status. During the reporting period, due to the impact of the soaring price of bulk materials,
revenue from the project did not reach the expectations during the reporting period.
(2) The "Production line for the annual capacity of 2 million washing machines(Phase II)" has completed at end of the 2021 with
normal production in process. As of today, the project has reached the intended state of use. During the reporting period, suffer by the
capacity climbing and COVID-19 and comprehensive factors as soaring prices of bulk materials and amortization of depreciation,
sales of the Company was less than expectation, resulting in a loss of the project in the period.
2.“Construction of intelligent R&D capability and new products development of the intelligent appliance technology ”
According to the “Non-public Offering of A-Share” in 2016, the Company plans to invested 559 million yuan on
the project, and implementing the two major projects includes “intelligent R&D capacity building”(mainly include
intelligent R&D management platform construction, experimental center construction and relocation, the
construction of H&R and cooperative R&D) and “intelligent home appliance technology and new product
development”.
In order to accelerate the implementation of the company’s “intelligent research and development projects”, shorten the development
cycle of intelligent products, improve the company's research and development capabilities, and reduce the repeated investments in
resources, the resolutions of the 31st meeting of the ninth BOD, the 16th meeting of the 9th BOS, and the 4th extraordinary
shareholders’ meeting in 2019 passed and agreed the company to change the use and investment of some of the funds raised in the
“intelligent research and development project”, and use them to purchase intelligent infrastructure platform construction and software
R & D platforms and other R & D assets from Sichuan Changhong Electric Co., Ltd.(hereinafter referred to as Sichuan Changhong)
and its subsidiaries. The pricing of the related transactions was subject to the appraised value of the underlying asset as of September
30, 2019, and the transaction price was determined to be 46,617,300 yuan.
Being approved by the 23rd session of 9th BOD, 17th session of 9th BOS and First extraordinary shareholders
general meeting of 2020, agreed to close the project of “intelligent R&D”, and the surplus proceeds of the project
as of November 30, 2019, amounting to 125,084,220.44 yuan (including income of 47,970,805.20 yuan from
wealth management and deposits) and the interest to be settled thereafter to replenish the working capital of the
Company permanently. Meanwhile, total amount of the final payment and warranty deposit that to be paid
114,368,326.60 yuan will continue to be retained in the fund raising account and paid as agreed in the contract.
As for the assets transaction with R&D purchased, after singing the “Assets Transfer Agreement” between the Company and other
parties, the Company actively implemented the implementation of the transaction. However, substantial difficulties were encountered
in the specific promotion work in 2020 due to the changes in the internal and external environment. Affected by the epidemic, assets
handover has a slow progress in transaction, and the immature delivery conditions for some assets due to technology iteration and
upgrade, material uncertainty has arisen as to the timing and results of the delivery completion of the subject assets. Taking into
account the actual situation of the company and the future development needs, after deliberation and approval at the seventh session
of the tenth BOD of the company and the 6th session of the 10th BOS of 2021 and the first extraordinary shareholders’ general
44
CHANGHONG MEILING CO.,LTD. Annual Report 2021
meeting of 2021, it was agreed that the company would terminate the use of raised funds to purchase the R&D assets such as the
intelligent infrastructure platform construction and software R&D platform of Sichuan Changhong and its subsidiaries.
Before the termination of the transaction, the company had not yet paid the transaction funds and had not carried out the transfer
procedures for the underlying assets. In order not to affect the progress of the company's fundraising project "intelligent R&D
Project", the company had used its own funds to promote the sub-project "intelligent R&D management platform construction” in
advance; after the termination of the transaction, the company continued to promote the construction of “intelligent R&D
management platform construction”, a sub-project of the “intelligent R&D Project” (other sub-projects of the intelligent R&D Project
have been completed). Up to now, the "intelligent R&D management platform construction" has been completed and is ready for use.
In view of the project close and permanent replenishment of the working capital with surplus proceeds, the R&D
assets as intelligent infrastructure platform and software R&D platform purchased from Sichuan Changhong and
its subsidiaries with fund raising are terminated. Therefore, the project of “intelligent R&D management platform
construction” is still under implementation. During the reporting period, the construction charge for intelligent R&D
management platform, the contract final payment and warranty of 54,931,891.59 yuan in total are paid by the Company. Ended as 31
December 2021, remaining proceeds of “intelligent research and development projects” was 15,812,019.58 yuan (including wealth
management income of 1,735,039.45 yuan and deposit interest income of 295,925.40 yuan )
3.“Intelligent life project”
The resolutions of the 24th session of the ninth BOD of the company, the 13th session of the 9th BOS, and the 2nd extraordinary
shareholders’ meeting in 2019 passed and approved the company to terminate the implementation of the “Intelligent life project” and
use the remaining raised funds, financial management interest and deposit interest of the project to permanently supplement the
working capital. The company has withdrawn the remaining funds raised and interest income from this account, a total of
305,843,051.27 yuan, to permanently supplement the company’s working capital. After the withdrawal, the remaining funds of the
special account for the raised funds were 0 yuan, and the account was cancelled. Meanwhile, the implement subject - Changmei
Technology Co., Ltd. (hereinafter referred to as the “Changmei Technology”) has been liquidated and cancelled.
4. “Supplementary the working capital ”
The investment progress exceeded 100%, and mainly due to the use of raised funds containing the deposit interest of raised funds.
Note 2: Early investment and replacement with the raised fund
Ended as 31 October 2016, the Company contributed self-raised fund 63,984,738.91 yuan for the raised-fund investment project, the
money has replaced as 63,984,738.91 yuan. Shine Wing CPA (LLP) made a special audit for pre-investment and carried out an
Assurance Report on Invested Self-raised fund to the Raised-fund Investment Before Hand (XYZH/2016CD40285) (hereinafter
referred as to Assurance Report). Replacement are as:
In 10 thousand yuan
Commitment
Investment of self-raised
Total capital for Amount
Raised-fund investment project fund invested till end of 31
investment raised-fund replaced
October 2016
project
Construction of intelligent
39,870.65 39,100.00 2,545.41 2,545.41
manufacturing project
Construction of intelligent R&D
capability and new products 55,900.00 55,900.00 2,053.06 2,053.06
development of the intelligent
45
CHANGHONG MEILING CO.,LTD. Annual Report 2021
appliance technology
Intelligent life project 32,076.00 32,000.00 1,800.00 1,800.00
Total 127,846.65 127,000.00 6,398.47 6,398.47
The replacement has been deliberated and approved by the 27th session of 8th BOD and 14th session of 8th supervisory committee,
independent directors are proposed an agreeable independent opinion, and sponsor institution carried out a verification opinion
without objection.
Note 3: Amount and reasons for the balance of proceeds from implementation
1. According to the resolutions passed at the thirty-third session of the ninth BOD, the 17th session of the 9th BOS, and the first
extraordinary shareholders’ general meeting of 2020, it was agreed that the company would partially complete the "intelligent R&D
ability building and smart home appliance technology new products development project" (hereinafter referred to as “intelligent
R&D project”). The amount of surplus funds raised in the completion part of the project was 126,766,362.64 yuan (including wealth
management income and deposit interest income). The main reasons for the above-mentioned surplus of raised funds are: firstly,
during the implementation of the raised funds investment project, the company complied with the relevant regulations on the use of
raised funds, proceeded from the actual situation of the project, on the premise of not affecting the smooth implementation and
completion of the fund-raising investment project, and based on the principles of rationality, economy and effectiveness, the
company prudently used the raised funds, and saved the project surplus raised funds of 77,113,415.23 yuan; secondly, interest income
from wealth management and deposits generated during the deposit period of idle raised funds, totaling 49,652,947.41 yuan.
2. According to the resolutions passed at the sixteenth session of the tenth BOD and the thirteenth session of the tenth BOS, it was
agreed that the company would complete the "intelligent R&D management platform construction", a sub-project of the remaining
fundraising projects "intelligent manufacturing construction project" and "intelligent R&D project". The amount of the surplus raised
funds in the completion of the fundraising project was 45,665,621.17 yuan, which was wealth management income and deposit
interest income. The above-mentioned surplus of raised funds is mainly due to the interest income generated from financial
management and deposits during the depositing period of idle raised funds. This matter still needs to be submitted to the company's
general meeting of shareholders for consideration and approval.
Note 4: Use purpose and destination of the raised funds un-used
On March 29, 2022, the sixteenth session of the tenth BOD and the thirteenth session of the tenth BOS reviewed and approved the
Proposal on Completing Investment Projects of Remaining Raised Funds and Permanently Supplementing the Working Capital with
Surplus Raised Funds, the independent directors have issued agreed independent opinions, and the sponsor institution has issued an
unobjectionable verification opinion, agreeing that the company would complete the "intelligent R&D management platform
construction", a sub-project of the remaining fundraising projects "intelligent manufacturing construction project" and "intelligent
R&D project", and the surplus raised funds of the aforementioned projects as of December 31, 2021 of 45,665,621.17 yuan (the final
amount should be subject to the bank interest balance on the day the funds are transferred out), as well as the balance formed by the
difference between interest income and service fee generated before the cancellation of the subsequent special account for the raised
funds shall permanently supplement the company's working capital and be used for the company's daily operations and business
development. This matter still needs to be submitted to the company's general meeting of shareholders for consideration and
approval.
Up to now, all the raised funds that have not been used by the company are deposited in the designated special account for raised
funds, and will continue to pay the balance payment of the fundraising project contract and the quality assurance fund. The use of the
46
CHANGHONG MEILING CO.,LTD. Annual Report 2021
raised funds of the Company has not changed.
3.Change of the raised funds
√ Applicable □ Not applicable
In 10 thousand yuan
Investment Achieve Major changes
Correspond Cumulative Date of reach Benefit
Total raised funds Amount actually progress till d of project
Project after ing original investment amount a achieved
plans to invest after invested in the end of expected feasibility
changed commitmen actually till end of predetermined in the
change (1) period period-end benefits after changed
t item Period-end (2) state of use Period
(3)＝(2)/(1) (Y/N) (Y/N)
Production line
for the annual Freezer
capacity of 2 intelligent
12,000 3,928.213853 11,476.803263 95.64% 2021-12-31 -2,547 N N
million washing constructio
machines(Phase n project
II)
Supplementary
the floating Intelligent Not app
30,584.305127 0 30,584.305127 100% -- -- N
capital life project licable
permanently
Total -- 42,584.305127 3,928.213853 42,061.10839 -- -- -- -- --
1. The Company optimized the layout of the freezer’s production capacity through intelligent upgrading and rebuilding,
improved the freezer’s production capacity and efficiency, and the freezer’s production capacity has been able to meet the market
demand. The project had not been implemented, and the feasibility of the project had undergone major changes, if the Company
continued to implement the “freezer intelligent construction project”, it would not be able to achieve the expected economic
benefits and would face market and investment risks. Approved by the resolutions of the 24th session of the ninth BOD, the 13th
session of the 9th BOS, and the 2nd extraordinary shareholders meeting in 2019 agreed the Company to change the unused raised
funds of 120 million yuan for the “intelligent construction of freezer” invest in the “production base project for annual
production of 2 million washing machines (Phase II)”. Found more on relevant announcement (Notice No.: 2019-040, 2019-041,
Reasons for changes, 2019-042 and 2019-047) released on 9 July 2019 and on 26 July respectively. During the reporting period, “production base
decision-making procedures project for annual production of 2 million washing machines (Phase II)” has completed at end of the 2021 with normal
and information disclosure production in process. The project reached the intended state of use as of today.
(explain by specific project)
2. As the main body of the company’s “Intelligent life project”, Changmei Technology used its own refrigeration equipment
manufacturing advantages to look for new paths for enterprise development. However, due to the heavy asset burden, low
turnover rate, high operation and maintenance and property costs, it sustained losses. After careful research, the company
considered that the original business model of the smart life project was no longer competitive, if the company continued to
implement the investment project with the raised funds, it would be difficult to achieve the expected investment income and may
even generate greater losses. The resolutions of the 24th session of the ninth BOD of the company, the 13th session of the 9th
BOS, and the 2nd extraordinary shareholders’ meeting in 2019 passed and approved the company to terminate the
implementation of the “Intelligent life project” and use the remaining raised funds and financial management interest of the
project to permanently supplement the working capital. Found more on relevant announcement (Notice No.: 2019-040,
47
CHANGHONG MEILING CO.,LTD. Annual Report 2021
2019-041, 2019-043 and 2019-047) released on 9 July 2019 and on 26 July respectively. The company has withdrawn the
remaining funds raised and interest income from this account, a total of 305,843,051.27 yuan, to permanently supplement the
company’s working capital. After the withdrawal, the remaining funds of the special account for the raised funds were 0 yuan,
and the account was cancelled. Meanwhile, the implement subject - Changmei Technology Co., Ltd. (hereinafter referred to as
the “Changmei Technology”) has been liquidated and cancelled.
Conditions and reasons of The “production base project for annual production of 2 million washing machines (Phase II)” has completed at end of the 2021
failure to meet schedule or with normal production in process. The project reached the intended state of use as of today. During the reporting period, suffer
predicted income (by by the capacity climbing and COVID-19 and comprehensive factors as soaring prices of bulk materials and amortization of
specific projects) depreciation, sales of the Company was less than expectation, resulting in a loss of the project in the period.
Presentation on the major
changes in project feasibility N/A
after changed
VIII. Sales of major assets and equity
(i) Sales of major assets
□ Applicable √ Not applicable
No major assets are sold in the period
(ii) Sales of major equity
□ Applicable √ Not applicable
IX. Analysis of main holding company and stock-jointly companies
√ Applicable □ Not applicable
48
CHANGHONG MEILING CO.,LTD. Annual Report 2021
(i) Particular about main subsidiaries and stock-jointly companies net profit over 10%
In RMB
Company name Type Main business Register capital Total assets Net assets Operating revenue Operating profit Net profit
Zhongke Meiling Research and development,
Cryogenic manufacturing and sales of
Subsidiary
ultra-low temperature
72,548,200 525,123,425.58 248,075,236.72 464,899,620.09 77,804,211.51 65,085,510.92
Technology Co.,
Ltd. freezer
Jiangxi Meiling
Manufacturing of
Electric Appliance Subsidiary
refrigeration and freezer
50,000,000 269,231,691.58 132,436,721.37 834,813,600.80 13,453,619.64 13,531,378.62
Co., Ltd.
Mianyang Meiling
Manufacturing of
Refrigeration Co., Subsidiary
refrigeration and freezer
100,000,000 146,680,170.59 120,388,578.98 384,775,062.33 -1,433,282.09 -1,099,588.10
Ltd.
Sichuan Changhong R&D, manufacturing and
Air-conditioner Co., Subsidiary domestic sales of 850,000,000 3,290,717,406.66 1,084,703,780.24 4,916,379,335.27 -5,884,296.28 -4,190,915.53
Ltd. air-conditioning
Zhongshan R&D, manufacturing and
Changhong Electric Subsidiary foreign sales of 334,000,000 1,294,481,958.15 81,279,662.26 2,384,071,471.29 -40,772,575.99 -40,598,387.35
Co., Ltd. air-conditioning
Hefei Meiling
Group Holdings Subsidiary Sales of white goods 80,000,000 1,660,769,710.90 -228,079,317.35 5,648,841,234.10 -47,507,646.68 -46,955,697.02
Limited
R&D, manufacturing and
Changhong Meiling sales of kitchen and toilet
Ridian Technology Subsidiary products, small home 83,000,000 303,209,569.07 136,853,874.26 309,467,627.62 3,092,866.04 2,351,153.78
Co., Ltd. appliances and water
purifier
Hefei Changhong R&D and sales of household
Subsidiary 50,000,000 421,208,513.56 80,365,175.14 1,136,846,527.85 40,139,653.52 30,365,175.14
Meiling Life appliances, kitchen
49
CHANGHONG MEILING CO.,LTD. Annual Report 2021
Appliances Co., appliances and small home
Ltd. appliances
Hefei Xingmei
Assets Management Associates Leasing, agency 1,000,000 47,138,542.38 41,084,024.11 31,871,752.79 26,945,094.97
Co., Ltd.
50
CHANGHONG MEILING CO.,LTD. Annual Report 2021
(ii) Subsidiary obtained and disposed in the period
√ Applicable □ Not applicable
The method of
obtaining and
Company name disposing The influence to the whole production and performance
subsidiaries during
the report period
The wholly-owned subsidiary invested by the controlling subsidiary of the
Company - Zhongke Meiling, registered capital amounted to 10 million yuan.
Anhui Ling'an Medical Equipment Investment and
Establishment of the company further expands the business scope of Zhongke
Co., Ltd. Establishment
Meiling in field of biomedical, further develops the business in life science
segment and enhance the core competitiveness of Zhongke Meiling.
Tai yuan Meiling Electric Mergers & Minor effect on the overall production and operation and performance of the
Appliances Marketing Co., Ltd acquisition company
Tianjin Meiling Electric Appliances Mergers & Minor effect on the overall production and operation and performance of the
Marketing Co., Ltd acquisition company
Guangzhou Meiling Electric Mergers & Minor effect on the overall production and operation and performance of the
Appliances Marketing Co., Ltd acquisition company
(iii) Description of the holding company and stock-jointly companies
Subsidiary of the Company - Sichuan Changhong Air-conditioner Co., Ltd has major growth in net profit from a
year earlier, mainly because the revenue from operation increased dramatically on a y-o-y basis.
X. Structured entity controlled by the Company
□ Applicable √ Not applicable
XI. Prospects for the future development of the company
(1)Macro environment analysis
Looking forward to 2022, the impact of the pandemic on various industries affects residents' income to a certain
extent, consumer demand shrinks, and pressures from supply shocks and weakening economic expectations still
exist, and the pandemic and the complex and volatile global political and trade environment bring lots of
uncertainties to economic development. But in the long run, China's economy is resilient, and the long-term
positive fundamentals will not change. With a new round of technological revolution and the in-depth
development of industrial transformation, new technologies will promote profound changes in the traditional
manufacturing industry, the pace of corporate innovation will be accelerated, the consumer market will be
characterized by hierarchy and individualization, and there will be new opportunities for the development of the
home appliance industry. Under the general trend of industry consumption upgrading, the high-quality,
personalized, fashionable, comfortable, intelligent, healthy and other emerging categories and scene solutions that
accurately match the needs of segmented groups through technological innovation and consumer research will
have a rapidly growth and become the main driving force for the consumer market. The household appliance
51
CHANGHONG MEILING CO.,LTD. Annual Report 2021
industry chain will comprehensively have a green, low-carbon, intelligent, and digital transformation and
upgrading, and continue to enhance the industry's global competitiveness and influence.
(2) Industry environment analysis
1.Refrigerator (freezer) industry
In the domestic market, according to the data released by the National Bureau of Statistics, the refrigerator and
freezer ownership per 100 households in China has exceeded 100 in 2020, which also means that the refrigerator
market has fully entered the stock market, and the product structure upgrade and the price structure upgrade
brought about by the renewing process still exist, and the scale still maintains a steady development trend. From
the perspective of the supply side, although raw material prices of bulk commodity have fallen, they are still
operating at a high level. The long-term existence of cost pressures will continue to form a negative feedback on
the scale, and will also continue to drive industry prices higher. All View Cloud (AVC) predicts that the retail sales
volume of the refrigerator market will reach 31.51 million units in 2022, a year-on-year decrease of 1.2%, while
the upstream cost continues to drive price growth. The retail sales are expected to be 98 billion yuan, a
year-on-year increase of 0.9%.
In terms of the export, the demand for refrigerators in overseas markets, especially in Europe and the United
States, is likely to fall due to the weak demand brought about by overdraft in the early stage and the increase in
terminal prices, as well as the multiple pressures brought about by the withdrawal of financial subsidies in many
regions. In addition, the shipping price remains high in a short period of time, and the repeated outbreaks of
pandemics overseas result in a sluggish international logistics supply chain and a low empty container turnover
rate, the shipping capacity of major overseas ocean routes is still tight, which also squeezes the export share and
profit to a certain extent. The industry online predicts that the export scale of refrigerators will decline to a certain
extent in 2022.
2. Air-conditioning industry
In 2021, the cost of the air-conditioning industry soared, the industry demand was weak, and enterprises faced
huge operating pressure. In the first half of 2022, the consumption drive of the domestic air-conditioning market is
still insufficient and there are still some uncertain factors, but with the stimulus and guidance of a series of
national consumption policies, the consumer market will gradually improve in the second half of the year. In
overseas markets, because the slowdown in global economic recovery is hard to alter, the behavior of issuing
consumer vouchers in developed countries is unsustainable, high inflation and exchange rate fluctuations restrain
demand, and shipping prices will remain high in the short term, the prices of air-conditioning products are hard to
fall back, and there is great uncertainty in the overseas market demand for air conditioners in 2022. In this context,
the competition among enterprises is more rational and cautious.
3.Washing machine
In recent years, the washing machine market has tended to a period of stock consolidation, the market demand is
52
CHANGHONG MEILING CO.,LTD. Annual Report 2021
mainly for upgrading, and insufficient demand has become the norm in the industry. Especially under the
influence of the COVID-19 epidemic, the overall growth rate of the industry has declined. Affected by factors
such as rising raw materials prices, increased cost, and consumer’s mentality after the pandemic, competition
among enterprises has shifted from price to value. In addition to basic functions such as washing, products also
focus on high-quality and high additional functional requirements, such as drying, sterilization, and intelligence,
and continuously improve product quality. In view of the stable domestic pandemic situation, the possibility of a
large-scale outbreak is minimal. At the same time, the market demand for washing machine renew is stable, and
the pace of product iteration is stable and powerful. Among household appliances, washing machine shows a
positive trend of continuously stable market, continuous transfer of channels, and continuous upgrading of
structure.
4.Kitchen & bathroom, small appliance
In the kitchen appliance industry, the "stay at home economy" caused by the pandemic allows millions of families
to regain the time and space to cook, and awakens people's love and enthusiasm for cooking. However, with the
normalization of the pandemic, consumers have gradually become more rational and less enthusiastic about
consumption. According to the national standard for the service life of kitchen and bathroom products, kitchen and
bathroom products will gradually enter the renew cycle, and along with the technical iteration of kitchen and
bathroom products, the improvement of residents' consumption levels, and the implementation of plans such as
old city renovation, the upgrading of kitchen and bathroom products will be further accelerated.
In terms of the small home appliance industry, from the channel level, the arrival of the epidemic has led to the
rapid development of online channels and the maturity of live streaming sales, and online channels have become
the main sales channels for small home appliances. From the perspective of category, consumption continues to
escalate and the population is continuously subdivided, resulting in a diversified consumption demand. Many
emerging small home appliances categories emerge after the epidemic, injecting new energy and opportunities
into the small home appliance market. But at the same time, small home appliance is also facing the dilemma of
low entry threshold and uneven products, resulting in the increasingly fierce competition among enterprises.
5.Bio-medical
The medical equipment industry has a huge market size and many subdivisions, together with the equipment
upgrades of primary medical institutions during the post-pandemic period, the market demand for various medical
equipment has been growing steadily. Under the background that the national policy focuses on encouraging the
localization and domestic substitution of medical equipment, the state encourages the priority to purchase
domestic devices, which has created the demand for localization and promoted the continuous improvement of the
domestic medical equipment industry chain. At the same time, companies continue to increase investment in
research and development, enhance independent innovation capabilities, adjust business models, and establish and
improve regulatory systems, which have effectively promoted the process of localization of medical equipment.
(iii) Development strategy
1. Vision
53
CHANGHONG MEILING CO.,LTD. Annual Report 2021
Be a leading brand in China, World Class and respectable household appliance enterprise.
2. Strategic direction
Fully implement the guideline of "one goal, three main lines", drive organizational transformation through
reasonable commercial inventory turnover, and improve overall competitiveness with efficiency as the core, so as
to achieve the steady development of the industry.
(iv) Business plan for 2022
1. Management principle
The company's management principle in 2022 is "one goal, three main lines". The company will firmly take the
road of efficiency as the king, product leadership, and benchmarking, so that the capabilities of efficiency and
product can be transformed into economic benefits through benchmarking, and then achieve one goal of achieving
share growth under the premise of profitability.
(1) One goal
"One goal" is to achieve share growth under the premise of profitability. Deepen the marketing transformation,
further strengthen the operation management system centered on reasonable commercial inventory, the value
management system centered on retail price, the marketing management system centered on retail, and the
expense control system centered on rigid budget, and continue to increase revenue, reduce costs, and reduce fees
in the research and production end so as to achieve the goal of continuous improvement in operations.
(2) Three main lines
Efficiency is king: further strengthen the operation management system with reasonable commercial inventory as
the core, and lead the efficient and coordinated operation of the whole link of retail-manufacturing-logistics.
1. Improve commercial inventory turnover. The retail end strengthens the inventory management of commercial
units, accelerates the marketing transformation and business model optimization, and continues to shorten the
commercial inventory turnover days; the manufacturing end shortens the order cycle through the futures model
and the order model; improves the supply capacity and shortens the procurement cycle; improves die change
efficiency and flexibility production and increase the daily delivery rate to shorten the production cycle; the
logistics end shortens the logistics cycle by improving the efficiency of logistics collection, loading, and delivery.
At the same time, the company will build a data security system to vigorously ensure the smooth progress of
industrial Internet projects, increase the proportion of direct delivery of products, increase the proportion of orders
and customers, and support the increase in commercial inventory turnover.
2. Improve R&D efficiency. Take the product as the starting point, connect the planning, development, promotion
and sales business chain to achieve the joint action of goals and tasks, reduce the design change rate, compress the
research and development cycle, and strictly control the number of product models.
3. Improve manufacturing efficiency. On the premise of ensuring safety, we will focus on comprehensive
54
CHANGHONG MEILING CO.,LTD. Annual Report 2021
operation, precise ordering, digital manufacturing, and lean production; with production line efficiency as the
starting point, we will greatly narrow the gap with benchmarks and achieve manufacturing breakthroughs.
4. Improve quality efficiency. Continue to promote risk control, cost reduction, and reputation improvement,
improve product quality level, greatly reduce the bad review rate of e-commerce, telephone complaint rate, and
return rate, and improve customer satisfaction.
5. Improve human efficiency and cultural implementation. Continuously optimize jobs and improve human
efficiency, and upgrade GPI (employee performance growth indicator) and improve employee vitality. Implement
the corporate culture into the code of conduct and the evaluation standards for each cadre and employee, and
improve the professional satisfaction of all employees.
Product leadership: Value oriented, study consumer needs and gain insight into technology development trends;
integrate internal planning capabilities, R&D and manufacturing capabilities, marketing and promotion
capabilities and user service capabilities, and superimpose "unique value products" on the basis of efficiency to
form the competitive advantages of "high-quality products + popular products" .
1. Adhere to the product strategy. Adhere to the product strategy of "high-quality products" + "popular products" +
"high-quality & popular products", focus on "thin, fresh, beautiful, intelligent" refrigerators, focus on "extremely
quiet, extremely economical, extremely intelligent" air conditioners, focus on "thin, large, simple” washing
machines, focus on “influential brands of water ecological household appliances and operation services” for
kitchen, bathroom and small household appliances, and focus on “life sciences, cold chain and health market
opportunities” to make product layout for biomedical products. Through "accurate positioning, strengthening
stratification, revitalizing bases, and channel customization", we continue to enhance product competitiveness and
promote healthy product operation.
2. Strengthen the construction of product planning system. Refresh the product planning and development outline
by node to accurately meet the market demand. Go deep into the market to improve the accuracy and breadth of
product planning, standardize the implementation of the IPD process, and reduce source changes.
3. Take the user as the center, dig out and solve the pain points. Make precise user portraits, embed user
experience evaluation into the IPD process, and enhance the improvement rate of user experience problems for
new products.
4. Improve the capacity building of core key technologies. Independently master the core technology to achieve
industry leadership; integrate and apply the key technologies to achieve industry advancement; and master the
hard core technology mechanism to achieve industry breakthroughs.
5. Strengthen intelligent research. Create a leading product use experience around the human-computer interaction
between users and home appliances, and create a new generation of home appliance products around the
integration of basic home appliance technology and intelligent technology.
Benchmarking: It is necessary to benchmark not only the technology, but also the business guiding ideology, so
as to improve the performance, ability and efficiency of the organization.
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CHANGHONG MEILING CO.,LTD. Annual Report 2021
2. Market strategy
(1) Refrigerator (freezer)
In the domestic market, the company will unswervingly carry out the transformation of the marketing organization,
create "high-quality goods" + "hot sale products"+ “high-quality and hot-sale products”, increase scale, improve
gross profit, increase e-commerce efforts, promote online and offline integration, and achieve scale growth
through the increase in online share, meanwhile, shrink offline channels with poor profit and loss.
In overseas markets, focus on valuable scale improvement. Create the advantages of air cooling and frequency
conversion, consolidate the leading advantages of vertical air-cooled refrigerators, create the advantages of
thin-walled horizontal refrigerators with full volume, improve product competitiveness, and continuously increase
market share by focusing on strategic markets, key markets, and potential markets. At the same time, accelerate
the business development of self-owned overseas brands, the subsidiaries run parallel to the agency models, and
speed up the brand export.
(2) Air-conditioning
In the domestic markets, we pursue a benign priority, seize the opportunity to upgrade the functions of "fresh air,
self-cleaning, and comfortable air", and create a "high-quality goods" + "hot sale products"+ “high-quality and
hot-sale products” model. Develop e-commerce, focus on the base market, fully benchmark against each other,
and insist on profitable scale growth.
In overseas markets, the company adheres to the business philosophy of brand priority, channel focus, product
upgrade, and efficiency first. In terms of channels, seek breakthroughs in new markets, further expand emerging
markets, focus on core customers in key markets, and strengthen the ability to respond to different markets. In
terms of products, promote the derivation and sales of new on-hook platform products, and accelerate the
development of the third-generation health air conditioners and the products with voice function of a local
minority language.
(3)Washing machine
On the basis of domestic sales, make rapid breakthroughs in export sales, supplemented by brand business, the
three-in-hand make its own efforts to achieve sustainable and high-quality growth. Focus on the industrial vision
of "wash away the pretense and protect the whole family", adhere to the business philosophy of "user-centered,
high-quality, differentiated", and create the core competitiveness of products such as "ultra-thin body",
"super-large diameter", and "one-key smart wash".
(4) Kitchen and bath, small household appliances
For kitchen, bathroom and small household appliances, continue to implement differentiated competition
strategies, strengthen the improvement of influence in the water ecology segment, and continue to deepen the
system capabilities building based on the business idea of "product traction, marketing transformation, operation
improvement, and team activation", focus on the core product line of "Tea Drinking Ecology", and steadily
improve the market size and industry status.
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CHANGHONG MEILING CO.,LTD. Annual Report 2021
(5) Bio-medical
Unswervingly implement the development strategy based on the related diversification in the bio-medical field,
center on the business framework layout of life science, smart cold chain, and family health, go deep into the life
science channel system construction, promote product upgrade iterations and new technology innovation research
and development to drive services and improve efficiency; move towards automated cold storage, and steadily
expand smart cold chain business; promote the launch of new family health products, and accumulate channel
expansion to promote the rapid growth of the company.
The above business plan and business objectives do not represent the listed Company’s profit forecast of 2022,
whether it can be achieved depends on the changes in market condition, the efforts of management team and other
factors, there are a lot of uncertainties, investors should pay special attention to it.
(v) Possible risks and countermeasures
In the face of home appliances market competition is more intense and other objective factors, the survival
environment of an enterprise will be even worse. In 2022, the Company will face risks as severe industry, soaring
raw material costs, rising shipping prices, trade frictions and geopolitical implications.
1. Risk of price fluctuations in raw materials
Affected by the pandemic, the prices of bulk raw materials used in the company's main products have been rising
for several consecutive rounds since May 2019. Though the prices slightly fell after rise at the end of 2021, due to
the impact of the international and domestic "dual control" policies, it is less likely that prices will have a sharp
decline, and it is expected that the overall operation is still at a high level, and the enterprises face huge cost
pressures.
2. Risk of price fluctuations in international transport
Affected by the pandemic and the increase in international demand for raw materials such as iron ore, the
container and shipping capacity has become tight, leading to an increase in international transport costs. It is
difficult for the company to book the cargo space for product export, resulting in prolonged delivery and transport
cycle, and difficult shipment of finished products. At the same time, the rising sea freight leads to a rise in retail
price, which will restrain the demand in some overseas markets, and thus have an adverse impact on the
company's export business.
3. The impact of trade frictions and geopolitical
The company pays close attention to the impact of uncertain factors such as international trade frictions and
geopolitics on the company's global business.
In response to the above risks, and combined with the industry situation in 2022 and the deficiencies in 2021, the
company will fully implement the business policy of "one goal, three main lines" in 2022, and make arrangements
in terms of products, technologies, and markets in advance, so that the company's products can realize the
high-end and intelligent transformation, meanwhile, enrich product lines, and build a comprehensive home
appliance enterprise.
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CHANGHONG MEILING CO.,LTD. Annual Report 2021
XII. In the report period, reception of research, communication and interview
√ Applicable □ Not applicable
Main contents of the
Receptio Basic situation index of
Time Location Way Type discussion and the
n object investigation
information provided
The shareholders
and investors who
Holding a presentation
participated in the
China Fund- Jihuibao on the 2020 annual http://irm.cninfo.com.cn/ircs/c
interactive
Online Roadshow business results and ompany/companyDetail?stock
2021-4-14 Other Other exchange at the
Center responding the code=000521&orgId=gssz000
2020 annual
(www.jhbshow.com) questions that investors 0521
business
concerned
presentation of
the Company
58
CHANGHONG MEILING CO.,LTD. Annual Report 2021
Section IV. Corporate Governance
I. Corporate governance of the Company
(i) Overview of the corporate governance
In strict compliance with the Company Law, Securities Law, Governance Principles of Listed Company issued by
the CSRC, the Rules Governing the Listing of Stocks on Shenzhen Stock Exchange and Shenzhen Stock Exchange
Self-Regulatory Guidelines No.1- Standardized Operation of the Listed Companies on main Board of SSE, the
Company continued to construct and perfect its governance structure, thereby forming its decision-making,
supervision and operation management organization with general meeting, the board of directors, the board of
supervisors and operation management as the major structure. The general meeting, board of directors, board of
supervisors and operation management of the Company has definite terms of reference, which can ensure an
effective balance, scientific decision-making process and coordinative operation, laying firm foundation for
making decisions relating to the Company’s continuous, steady and healthy development.
During the reporting period, the actual situation of corporate governance has been in line with the requirements of
relevant state laws and regulations, and regulatory documents relevant to governance of listed companies issued
by China Securities Regulatory Commission and Shenzhen Stock Exchange.
1. Shareholders and general meeting
The Company standardized the procedures concerning convening, holding and voting of general meeting in strict
compliance with the Articles of Association and Rules of Procedure of General Meeting. All shareholders,
especially the minority shareholders, were equally treated to ensure all shareholders shall rank equal status and
can fully exercise their right. During the reporting period, the Company convened shareholders general meetings.
In addition to convening general meeting in forms of site conference, the Company offered convenience for
shareholders to present general meeting via network voting which was safe, economic and convenient. At the
same time, all the matters submitted to the Company’s general meeting of shareholders should count the votes of
the small and medium investors separately, and the results of the vote count should be disclosed timely so as to
effectively protect the rights and interests of small and medium investors and ensure that all shareholders,
especially the small and medium shareholders, fully exercise their rights.
2. The Company and controlling shareholders
The Company has independent business and independent management capability. The Company and its
controlling shareholders owe independent business, personnel, assets, organs and finance. During the period,
controlling shareholder abide by requirement of Article of Association and Management System of Related
Transactions, strictly regulate their behaviors, and no controlling shareholder has directly or indirectly intervened
in the Company’s policy-making and business activities beyond the general meeting of stockholders, no capital or
assets of the Company occupied by controlling shareholder and its affiliates either.
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CHANGHONG MEILING CO.,LTD. Annual Report 2021
3. The directors and board of directors
Board Meeting are revoke and open in line with the regulation of Company Law and Article of Association
strictly, voting and information disclosure procedures appliance with relevant rules. All directors of the company
have carried out the work in accordance with the Rules of Procedure for the Board of Directors and the
Independent Director System, conscientiously attended the board meetings and the shareholders' meetings,
exercised their powers in accordance with the law, performed their duties diligently, and actively participated in
relevant training organized by the Shenzhen Stock Exchange and Anhui Securities Regulatory Bureau, the
Listed Companies Association of Anhui, and have been familiar with relevant laws and regulations. Independent
directors strictly abide by the Guiding Opinions on Establishing an Independent Director System in Listed
Companies, the Independent Director System and other regulations, in line with a serious, diligent and loyal
working attitude, based on an independent and prudent stand, actively participated in the company's
decision-making, carefully considered various proposals, issued prior approval and independent opinions on
related transactions and major issues, fully exerted the supervision and check and balance role of independent
directors, and effectively safeguarded the interests of the company and all shareholders, especially the small and
medium shareholders. The four special committees of strategy, remuneration and assessment, audit and
nomination under the board of directors of the company have been responsible for the discussion,
decision-making, supervision and evaluation of major work issues of the company according to the corresponding
working rules of each departmental committee, and quality played an important role in the scientific
decision-making and the improvement of decision-making efficiency and quality.
4. Supervisors and board of supervisors
The Company convened and held meeting of supervisors in strict compliance with the Company Law and Articles
of Association, and the voting and information disclosure procedures of supervisors’ meeting complied with
relevant requirements. The tenth board of supervisors of the company has five supervisors, including two
employee supervisors, the number and constitution of the board of supervisors meet the requirements of laws and
regulations. All supervisors of the company can earnestly perform their duties in accordance with the requirements
of the Rules of Procedure for the Board of Supervisors, supervise the decision-making procedures and resolutions
of the board of directors and the legal operation of the company, review the regular reports prepared by the board
of directors and put forward written review opinions, and effectively supervise and express independent opinions
on the company's major events, related transactions, financial status, the legality and compliance of directors and
senior executives’ performance of duties by attending the general meeting of shareholders and the meeting of the
board of directors from the perspective of safeguarding the legitimate rights and interests of the company and
shareholders.
5. The performance appraisal and incentive and constraint mechanism
The Company owes and continues to improve fairness and transparency performance appraisal standards and
incentive and constraint mechanism for directors, supervisors and senior management, the engagement of
managers of the Company is open and transparent and meets the provisions of laws and regulations.
60
CHANGHONG MEILING CO.,LTD. Annual Report 2021
6. The stakeholders
The Company fully respects and maintains the legitimate rights and interests of stakeholders; strengthen
communication and negotiation with each other, realizes the coordination and balance of interests for all parties
including society, shareholders, company and staff, pushes forward the sustainable, steady and harmonious
development of the Company together. In terms of safeguarding the interests of shareholders, the company treats
all shareholders, especially the small and medium-sized shareholders equally, in strict accordance with relevant
regulations, and ensures that all shareholders enjoy equal status and fully exercise their rights by regulating the
convening, holding and voting procedures of the general meeting of shareholders. In terms of rights and interests
maintenance, the company attaches great importance to the growth and development of employees, improves
employee satisfaction and guides all employees to make more contributions to the development of the company
by building position system, organizing a variety of accrual activities to shape corporate culture, and formulating
sustainable human resources and remuneration policies. In terms of safeguarding the interests of related parties,
guided by the corporate value of "co-creation and sharing", the company is committed to establishing a win-win
cooperation model with related parties for common development and common growth, and exploring the
optimization of cooperation modes such as management, personnel, cost and efficiency under the principle of
equality and mutual benefit.
7. About information disclosure and transparency
During the reporting period, the company strictly complied with relevant provisions of the Listing Rules of
Shenzhen Stock Exchange and the company's Information Disclosure Management System, strengthened the
management of information disclosure affairs, actively fulfilled its information disclosure obligations, and
designated Securities Times, China Securities Journal, Hong Kong Commercial Daily and Juchao Information
Website（Juchao Website (www.cninfo.com.cn)）as the designated media for the company's information disclosure,
implemented strict confidential procedures for material undisclosed inside information, and controlled the scope
of informed personnel. The company earnestly fulfilled its obligations to disclose relevant information in a true,
accurate, timely and complete manner, and ensured that all investors equally enjoy the right to know and other
legitimate rights and interests.
8. Investor relations management
The Company has seriously done the job of the investor relations management in accordance with the
requirements of the "Investor Relations Management System" and "Reception and Promotion system" during the
Period. Communicated with investors through the irm.cninfo.com.cn platform of the Shenzhen Stock Exchange,
fully listened to their opinions and suggestions, and protected the interests of small and medium investors;
earnestly did a good job in answering and replying investors' visits and calls, as well as receiving and replying
faxes and e-mails, and carefully handled the media reports. In order to fully protect the interests of small and
medium investors, the company organized and held the 2020 online performance briefing and achieved good
results, helping investors to have a more comprehensive understanding of the listed company and enhancing the
company's transparency.
61
CHANGHONG MEILING CO.,LTD. Annual Report 2021
(ii)Whether there are significant differences between the actual state of corporate governance and laws,
administrative regulations and the provision with governance concerned for listed companies issued by
CSRC
□Yes √ No
There are no significant differences between the actual state of corporate governance and laws, administrative
regulations and the provision with governance concerned for listed companies issued by CSRC
II. Independence of the Company relative to controlling shareholder and the actual controller in ensuring
the Company’s assets, personnel, finance, organization and businesses
The Company totally separated in business, personnel, assets, institutions and financial aspects from Sichuan
Changhong (controlling shareholder) and actual controller State-owned Assets Supervision & Administration
Commission of Mianyang Municipality, with independent business accounting, responsibility and risk and
independent business operation capability.
1. The business: the Company has an independent and complete business as well as operation ability, with
specialized procurement, production, technology, marketing, management, human resources and other
departments. We autonomously manage and operate business on our own. While the management staff are
independent from controlling shareholders and their subordinate enterprises. The Company is free from
interference by controlling shareholders and other affiliates, and there is no dependence on controlling
shareholders and other affiliates.
2. The personnel: personnel, labor, personnel and salary of the Company are completely independent. President,
vice president, person in charge of finance, Secretary of the board of directors and other senior management
personnel are working in the Company and receive salary, not receiving any remuneration and holding position of
any except directors, supervisors in the controlling shareholder and its subordinate enterprises.
3. Assets: the Company owns places of production and management independent from its controlling shareholder,
owns complete assets structure, independent production system, auxiliary production systems and supporting
facilities, land use rights, ownership of houses and other assets, and independent purchase and sales system. No
assets occupied by controlling shareholders and other affiliates.
4. Institutions: the Company established organization completely independent from controlling shareholders; the
general meeting, board of directors, board of supervisors and the internal organization are capable of taking
independent action, with no controlling shareholder intervention of corporation's decision-making behavior. The
Company strengthen the power restriction system via general meeting, the Board, supervisory committee,
independent directors and vary committees, formulated an effective structure for corporate governance.
62
CHANGHONG MEILING CO.,LTD. Annual Report 2021
5. Financial aspects: the Company set up independent financial management, and independent accounting system
and financial management system, independently setting up banking account and tax declaration.
III. Horizontal competition
□ Applicable √ Not applicable
IV. In the report period, the Company held annual shareholders’ general meeting and extraordinary
shareholders’ general meeting
(i) Annual Shareholders’ General Meeting in the report period
Ratio of
Session of Date of
Type investor Date Index of disclosure
meeting disclosure
participation
Totally 21 proposals including Report on Works of BOD
for year of 2020, Report on Works of BOS for year of
2020, Annual Report of 2020 and Its Summary, Financial
AGM of Statement Report for year of 2020 and Plans of Profit
AGM 31.5421% 2021-4-28 2021-4-29
2020 Distribution for year of 2020 are deliberated and approved
in the Meeting, for details, please refer to the "Resolution
of the AGM of 2020" (No. 2021-034) on the cninfo
website (Juchao Website (www.cninfo.com.cn)).
One proposal on Assets Procurement Termination and
First
Related Transactions was deliberated and approved by the
Extraordinary Extraordinary
Meeting, for details, please refer to the "Resolution Notice
General General 4.7757% 2021-6-16 2021-6-17
of First extraordinary general meeting of 2021" (No.
Meeting of Meeting
2021-046) on the cninfo website (Juchao Website
2021
(www.cninfo.com.cn)).
Totally 2 proposals including Purchasing the Liability
Insurance for Director/Supervisor/Senior Executives and
Second
Increased the Expected Routine Related Transactions for
Extraordinary Extraordinary
year of 2021 are deliberated and approved in the Meeting,
General General 31.3097% 2021-7-28 2021-7-29
for details, please refer to the " Resolution Notice of
Meeting of Meeting
Second extraordinary general meeting of 2021" (No.
2021
2021-058) on the cninfo website (Juchao Website
(www.cninfo.com.cn)).
One proposal on Continue Implementation and Adjustment
Third Partially of the Repurchase Program of Certain Domestic
Extraordinary Extraordinary Listed Foreign Shares (B Share) was deliberated and
General General 31.4135% 2021-9-10 2021-9-11 approved by the Meeting, for details, please refer to the "
Meeting of Meeting Resolution Notice of Third extraordinary general meeting
2021 of 2021" (No. 2021-075) on the cninfo website (Juchao
Website (www.cninfo.com.cn)).
Totally 11 proposals including Amend Some Article of the
Article of Association, Amend Some Articles of Rules of
Fourth
Procedure for Shareholders General Meeting and
Extraordinary Extraordinary
Expected Routine Related Transactions for year of 2022
General General 31.4488% 2021-12-23 2021-12-24
are deliberated and approved in the Meeting, for details,
Meeting of Meeting
please refer to the " Resolution Notice of Fourth
2021
extraordinary general meeting of 2021" (No. 2021-109) on
the cninfo website (Juchao Website
63
CHANGHONG MEILING CO.,LTD. Annual Report 2021
(www.cninfo.com.cn)).
(ii) Request for extraordinary general meeting by preferred stockholders whose voting rights restore
□ Applicable √ Not applicable
64
CHANGHONG MEILING CO.,LTD. Annual Report 2021
V. Directors, supervisors and senior officers
(i) Basic information
Number of
Number of
Shares held shares Shares Reasons for
Number of shares Other
Working Start dated of End date of office at Stock increased held at increase or
Name Title Sex Age restricted shares decreased in changes
status office term term period-begin options in this period-end decrease of
granted (share) this period (share)
(share) period (share) shares
(share)
(share)
Wu Currently Not
Chairman M 49 2014-7-3 2023-10-12 570,500 0 0 0 0 0 570,500
Dinggang in office applicable
Zhong Currently Not
Director, President M 49 2013-12-30 2023-10-12 236,175 0 0 0 0 0 236,175
Ming in office applicable
Yong Currently Not
Director M 53 2017-9-12 2023-10-12 0 0 0 0 0 0 0
Fengshan in office applicable
Kou Director, Deputy Currently Not
M 52 2014-7-3 2023-10-12 0 0 0 0 0 0 0
Huameng president in office applicable
Hu Director, Deputy Currently Not
M 48 2018-6-21 2023-10-12 178,050 0 0 0 0 0 178,050
Zhaogui president in office applicable
Zhao Currently Not
Director M 46 2021-12-23 2023-10-12 0 0 0 0 0 0 0
Qilin in office applicable
Hong Currently Not
Independent director M 46 2020-10-12 2023-10-12 0 0 0 0 0 0 0
yuanjia in office applicable
Currently Not
Mou Wen Independent director F 55 2020-10-12 2023-10-12 0 0 0 0 0 0 0
in office applicable
Zhao Currently Not
Independent director M 43 2020-10-12 2023-10-12 0 0 0 0 0 0 0
Gang in office applicable
Chairman of Currently Not
Shao Min M 39 2017-9-12 2023-10-12 0 0 0 0 0 0 0
Supervisory in office applicable
He Currently Not
Supervisor M 41 2017-9-12 2023-10-12 0 0 0 0 0 0 0
Xintan in office applicable
Huang Supervisor Currently F 51 2017-9-12 2023-10-12 0 0 0 0 0 0 0 Not
65
CHANGHONG MEILING CO.,LTD. Annual Report 2021
Hong in office applicable
Currently Not
Ji Ge Staff supervisor F 40 2017-12-25 2023-10-12 0 0 0 0 0 0 0
in office applicable
Sun Currently Not
Staff supervisor F 50 2021-3-30 2023-10-12 0 0 0 0 0 0 0
Hongying in office applicable
Liu Executive deputy Currently Not
M 58 2011-6-20 2023-10-12 1,689,893 0 0 0 0 0 1,689,893
Hongwei president in office applicable
Huang Currently Not
Deputy president M 52 2017-9-12 2023-10-12 356,450 0 0 0 0 0 356,450
Danian in office applicable
Tang Currently Not
Deputy president M 51 2021-3-29 2023-10-12 0 0 0 0 0 0 0
Youdao in office applicable
Pang CFO (person in charge Currently Not
M 46 2017-10-25 2023-10-12 0 0 0 0 0 0 0
Haitao of finance) in office applicable
Currently Not
Li Xia Secretary of the Board F 41 2009-5-22 2023-10-12 552,800 0 0 0 0 0 552,800
in office applicable
Office Not
Chen Ye Director M 57 2020-10-12 2021-12-10 0 0 0 0 0 0 0
leaving applicable
Zhu Office Not
Staff supervisor M 34 2015-4-8 2021-3-30 0 0 0 0 0 0 0
Wenjie leaving applicable
Total -- -- -- -- -- -- 3,583,868 0 0 0 0 0 3,583,868 --
66
CHANGHONG MEILING CO.,LTD. Annual Report 2021
1. During the reporting period, whether there was any departure of directors and supervisors and dismissal
of Senior Officers
√ Yes □ No
(1) On March 30, 2021, former security representative and staff supervisor Mr. Zhu Wenjie resigned from the position of staff
supervisor of 10th BOS and security representative of the Company for personal reasons.
(2) On December 20, 2021, non-independent director Mr. Chen Ye resigned from the Director of 10th BOD and member of the
strategy committee of the Company for personal reasons.
2. Changes of directors, supervisors and senior executives
√ Applicable □ Not applicable
Name Title Type Date Reasons
Tang Deputy Appoint Approved by 6th session of 10th BOD, Mr. Tang Youdao was appointed as
2021-3-29
Youdao president ment the Deputy president, with service term same as the 10th BOD
Voted by the 6th session of 8th Staff Congress of the Company, agreed to
Sun
Staff Be elected Ms. Sun Hongying as the staff supervisor of 10th BOS, term of
Hongyin 2021-3-30
supervisor elected office shall be from the date of deliberation and approval by Staff Congress
g
to the date of expiration of 10th BOS of the Company
Approved by Fourth Extraordinary General Meeting of Shareholders of
Zhao Be
Director 2021-12-23 2021, Mr. Wu Zhao Qilin was elected as the non-independent director of
Qilin elected
the 10th BOD with service term same as the 10th BOD
Office Resigned from the Director of 10th BOD and member of the strategy
Chen Ye Director 2021-12-10
leaving committee of the Company for personal reasons.
Zhu Staff Office Resigned from the position of staff supervisor of 10th BOS and security
2021-3-30
Wenjie supervisor leaving representative of the Company for personal reasons.
(ii) Post-holding
1. Professional background, major working experience and present main responsibilities in Company of
directors, supervisors and senior executive at the present
(1) Wu Dinggang, male, the Han nationality from Suining, Sichuan Province, was born in March 1973, Member
of CPC, owns bachelor degree, graduate from Tianjin University of Commerce China (Tianjin University of
Commerce now), major in refrigeration equipment and cryogenic technique. He served successively as GM of
Suining Sale Branch and Chengdu Sales Branch of Sichuan Changhong Electric Co., LTD, director of Sichuan
and Chongqing Marketing Management Department of Sichuan Changhong Electric Co., LTD, deputy GM of
Changhong Electronics (China) Marketing Co., GM of market planning center of Changhong Multimedia Industry,
director and GM of Le-Jia-Yi Chain Management Co., Ltd., ZhongkeMeiling Cryogenic Technology Co., Ltd.
director and GM of Sichuan Changong Air Conditioner Co., Ltd and deputy president, president, deputy chairman
and Party Secretary of the Company. Currently he serves as director, vice GM of Sichuan Changhong Electric Co.,
Ltd., chairman of the Company; Chairman of Zhongshan Changhong Electric Co., LTD; Chairman of Sichuan
Changhong Air-conditioner Co., Ltd. and Chairman of ZhongkeMeiling Cryogenic Technology Co., Ltd.
67
CHANGHONG MEILING CO.,LTD. Annual Report 2021
(2) Zhong Ming, male, the Han nationality from Meishan, Sichuan Province, was born in November 1972,
member of CPC, a senior engineer, doctoral degree, EMBA degree from University of Science and Technology of
China, PhD degree in Engineering Thermophysics. He successively served as deputy director of research
institution of Sichuan Changhong Air-conditioner Co., Ltd., deputy GM of Sichuan Changhong Air-conditioner
Co., Ltd. and technical director of household appliance group of Sichuan Changhong Electric Co., LTD. He serves
as director President and Party Secretary of the Company currently and Chairman of Hefei MeilingWulian
Technology Co., Ltd.
(3) Yong Fengshan, male, Han nationality, was born in Ding yuan, Anhui in June 1968, a member of the
Communist Party of China, a senior accountant, and a master degree holder. He ever took the posts of the director
of finance department of Hefei Cable Factory, the director of finance division and the deputy chief accountant of
Hefei Meiling Co., Ltd., the deputy general manager and chief accountant of Hefei Meiling Group Holding Co.,
Ltd., the secretary of the party committee and the GM and the president of Hefei Industrial Investment Holdings
Co., Ltd.Currently he serves asthe secretary of the party committee and the president ofHefei Industry Investment
Holding (Group) Co., Ltd., the secretary of the party committee and the GM and the president ofHefei Industrial
Investment Holdings Co., Ltd., chairman of Hefei State-owned Assets Holding Co., Ltd., the president of CAS
(Hefei) Institute of Technology Innovation Co., Ltd., chairman of Hefei Venture Capital Guiding Fund Co., Ltd.,
director of Anhui Jianghuai Automobile Co., Ltd., chairman of Hefei Kechuang Group Co., Ltd., chairman of
Hefei Talent Development Group Co., Ltd., vice chairman of Anhui Management Society, Vice chairman of Hefei
Enterprise (Entrepreneurs) Association and Chairman of Shushan Branch, and the director of the Company.
(4)Zhao Qilin, male, Han nationality, born in September 1975, graduated from Southwestern University of
Finance and Economics with a bachelor's degree in rural finance, and served as accountant of the financial
department, investment project manager, asset management manager of asset management department, manager
of investment management department, and securities affairs representative of Sichuan Changhong Electric Co.,
Ltd.; financial manager of Sichuan Changhong Innovation Investment Co., Ltd.; chief financial officer and and
joint company secretary of Changhong Jiahua Holdings Co., Ltd.. He currently serves as secretary of the board,
general counsel, office director of the board of directors, and director of the asset management department of
Sichuan Changhong Electric Co., Ltd., the controlling shareholder of the Company; director of Anjian Holdings
Co., Ltd., and director of Sichuan Changhong Innovation Investment Co., Ltd..
(5) Kou Huameng, male, the Han nationality from Yanting, Sichuan Province, was born in February 1970,
Member of CPC, master degree candidate, EMBA graduate from UESTC. He served successively as deputy
director of production office of Sichuan Changhong Electric Co., LTD, director of Guangxi Marketing
management Committee, director of Fujian-Jiangxi Marketing Management, General Manager of Changhong
Audiovisual Company and director and GM of Guangdong Changhong Digital Technology Co., Ltd.; Sichuan
68
CHANGHONG MEILING CO.,LTD. Annual Report 2021
Changhong Electric Co., Ltd, director of development management department of Sichuan Changhong Electric
Co., Ltd., and director of ChanghongHuayi Compressor Co., Ltd.; now he serves as director and deputy president
of the Company.
(6) Hu Zhaogui, male, the Han nationality, born in Feixi Hefei in October 1974, a member of the Communist
Party of China, holds a master’s degree, graduated from Chongqing University as a master of business
administration. He has served successively as the head of marketing and sales department stationed abroad of
Hefei Meiling Co., Ltd., assistant president and general manager of the freezer and washing machine business
division, and general manager of the domestic marketing division. He is currently the director and vice president
of the Company and the general manager of Sichuan Changhong Air Conditioner Co., Ltd., a subsidiary of the
Company.
(7) Hong yuanjia, male, Han nationality, born in February 1975, Shantou, Guangdong, holds a master degree,
graduated from Shanghai University of Finance and Economics majoring in international business management,
and is Fudan University MPAcc (Master of Accounting), CPA, International Accountant (AIA), intermediate
accountant, and intermediate economist. He once served as the foreign currency payable supervisor and
investment supervisor of China Eastern Airlines Co., Ltd., the deputy manager of the financial department of the
Shanghai Representative Office of SanchengHongji (Hong Kong) Co., Ltd., the accounting manager of General
Electric Lighting Co., Ltd., the accounting manager of General Electric Industrial Supply Co., Ltd., and Chief
Financial Officer of Lingji Electronics (General Electrical Industry System Power Supply). He is currently the
Chief Financial Officer of Asia Pacific Region of Yiluo Technology (Shanghai) Co., Ltd. and an independent
director of the Company.
(8) Mou Wen, female, Han nationality, born in September 1965, Hengshan, Hunan, holds a master's degree, an
accountant, and holds a master's degree in business management from Sichuan University. She previously served
as a lecturer in the School of Business Administration of Sichuan University, an Associate Professor of
Accounting in the School of Business Administration of Sichuan University, an independent director of Tibet
Mineral Development Co., Ltd., Sichuan Jinlu Group Co., Ltd., Huayi Compressor Co., Ltd., Jinhui Liquor Co.,
Ltd., Sichuan Teway Food Co., Ltd., and Hebei Baoli Engineering Equipment Group Co., Ltd., a member of
Investment Decision Advisory Committee of Sichuan Chuanjiao Road and Bridge Co., Ltd., and financial
consultant of Sichuan Daka Electric Co., Ltd., etc. She is currently Associate Professor and Master Supervisor of
Business School of Sichuan University, and an independent director of Chengdu Guibao Science and Technology
Co., Ltd., MianyangFulin Precision Machinery Co., Ltd., Sichuan Joyou Digital Technology Co., Ltd., Tibet
Mineral Development Co., Ltd., and an independent director of the Company.
(9) Zhao Gang, male, Han nationality, born in April 1977, Peixian, Jiangsu Province, is a member of the
Communist Party of China, holds a doctoral degree, graduated from the University of Science and Technology of
69
CHANGHONG MEILING CO.,LTD. Annual Report 2021
China majoring in power engineering and thermophysics. He once served as a post doctorate and an associate
professor in the Department of Mechanics and Mechanical Engineering of the University of Science and
Technology of China, a professor of orbital systems in the Department of Electronic Science and Technology, a
special researcher for foreigners in the Japan Society for the Promotion of Science, School of Engineering,
Kyushu University, Japan, and a senior research scholar in the Department of Mechanical Engineering at the
University of Washington. He is currently the executive director, professor and doctoral supervisor of the
Department of Electronic Science and Technology of the University of Science and Technology of China, the
deputy director of the Anhui Life Resources Conservation and Artificial Organ Engineering Technology Research
Center, a part-time professor of the Department of Mechanical Engineering of the University of Washington, and
an independent director of the Company.
(10)Chen Ye, male, Han nationality, native of Changzhou, Jiangsu, born in November 1963, senior engineer,
master's degree, graduated with a master's degree in business administration from Business School of the Hong
Kong University of Science and Technology. He served as an engineer of Physical and Chemical Analysis Centers
of the 46th Research Institute of CETC, deputy general manager of Tianjin Xinxing Electronics Co., Ltd.,
chairman and president of Sichuan Top Software Co., Ltd., general manager of Beijing Hongli Nico Technology
Co., Ltd., manager of planning technology department and deputy manager of asset management department of
Sichuan Changhong Electric Co., Ltd., general manager of Sichuan Changhong Innovation Investment Co., Ltd.,
general manager of Chengdu Changhong Technology Co., Ltd., and director of the Company. He resigned from
the Company on December 10, 2021, and didn’t serve as a director of the Company.
(11) Shao Min, male, Han nationality, was born in Linyi, Shandong in March 1983, and earned a bachelor’s
degree in accounting major from Xi’an Jiaotong University. He joined in work in July 2004, and ever served as
the accountant and finance manager of the branch office of Sichuan Changhong Electric Co., Ltd., the financial
director of finance department, the project manager of asset management department, manager of Assets
Operation Division of Assets Management Dept, deputy director and director of the Assets Management Dept.of
Sichuan Changhong Electric Co., Ltd. He currently serves as the head of Capital Operation Dept.of Sichuan
Changhong Electric Co., Ltd., director of Changhong Huayi Compressor Co., Ltd., director of Sichuan
Changhong New Energy Technology Co., Ltd., and the chairman of the Board of Supervisors of the Company.
(12) He Xintan, male, Han nationality, was born in Xiayi, Henan in April 1980, a member of the Communist Party
of China, an economist, and earned a master’s degree in management science and engineering from Xi’an
Jiaotong University. He joined in work in July 2002, and successively took the posts of the operations
management director of operation management department and the manager of general management office of
Sichuan Changhong Electric Co., Ltd., the deputy director of development and management department of
Sichuan Changhong Electric Co., Ltd., and a director of Changhong Huayi Compressor Co., Ltd.Currently he
serves as assistant to General Manager of Sichuan Changhong Electric Co., Ltd.and a supervisor of the Company.
70
CHANGHONG MEILING CO.,LTD. Annual Report 2021
(13) Huang Hong, female, Han nationality, was born in Shehong, Sichuan in June 1970, a member of the
Communist Party of China, a master degree holder, graduated from the University of Glasgow as a MBA, and a
senior auditor. She joined in work in July 1992, and ever served as the financial director of finance department,
the audit manager, marketing audit director, and audit chief of auditing department of Sichuan Changhong Electric
Co., Ltd. He currently serves as the deputy director of auditing department and the deputy director of labor union
audit committee of Sichuan Changhong Electric Co., Ltd., and a supervisor of the Company.
(14) Ji Ge, female, Han nationality, was born in Nanyang, Henan Province in January 1982, a member of the
Communist Party of China, and earned a bachelor’s degree in law from Hunan University and a master’s degree
from Anhui University. She joined Hefei Meiling Co., Ltd. in July 2005 and once served as the legal specialist of
legal department, the sponsor of legal affairs, and the intellectual property director of the legal department of the
Company. She currently serves as staff supervisor of the Company, member of commission for Discipline
Inspection, head of director office and risk control compliance dept., director of office of Party Committee,and
director of Discipline Inspection office.
(15)Sun Hongying, female, Han nationality, native of Tongcheng, Anhui, born in March 1972, member of the
Communist Party of China, master degree, intermediate accountant, graduated from Hefei University of
Technology with a major in accounting. She successively served as deputy director of the cost center, director of
the financial department of the refrigerator business division, and deputy director of the financial management
department of Changhong Meiling Co., Ltd.. She currently serves as employee supervisor, deputy director of the
refrigerator and freezer division of the finance and economics department, and director of the company labor
union review committee of the Company.
(16) Liu Hongwei, Male, Chinese American, bored in May 1963, Doctor of Applied Mechanics from Lehigh
University, graduate from department of mechanical engineering, Tsinghua University. He served successively in
Kulicke and Soffa Industries, Pennsylvania; Tessera Technology Corporation, Califonia; serves technical and
management post in Intel Corporation in Silicon Velleg. He joints the Hefei Meiling Co., Ltd. in 2007, now he
serves as executive deputy president of the Company.
(17) Huang Danian, male, Han nationality, was born in Huaining, Anhui in November 1969, a member of the
Communist Party of China, a senior engineer, and a master degree holder. He once served as the logistics director
and the deputy general manager, the director of the human resources department, the director of the
comprehensive planning department, head of budget management dept. , and the assistant to the general manager
of Sales Company of Hefei Meiling Co., Ltd. He is now the vice president of the Company.
(18)Tang Youdao, male, Han nationality, was born in Xuancheng, Anhui in July 1970, a undergraduate degree and
graduated from Wuhan University of Technology, majoring in industrial management engineering. He hold jobs
successively as overseas marketing manager, head of marketing dept., head of overseas marketing dept. and
71
CHANGHONG MEILING CO.,LTD. Annual Report 2021
general manager of overseas business division under the name of Hefei Meiling Co., Ltd. Currently vice president
and general manager of overseas refrigerator/washing machine division of the Company.
(19) Pang Haitao, male, Han nationality, was born in Qionghai, Hainan in May 1975, a member of the Communist
Party of China, a senior accountant, a senior political engineer, and a bachelor degree holder, and earned the
EMBA degree from Jiangxi University of Finance and Economics. He used to be a member of the finance
department, the director of related transactions and the director of capital operations of Sichuan Changhong
Electric Co., Ltd., the chief of finance office of Guangdong Changhong Electronics Co., Ltd., the director
ofgeneral ledger, the head of general management office, and the head of general ledger management office of the
finance department of Sichuan Changhong Electric Co., Ltd., the deputy general manager and chief financial
officer of Sichuan Changhong Development Co., Ltd., the deputy general manager and chief accountant of Huayi
Compressor Co., Ltd. Currently he is the chief financial officer (person in charge of finance) of the Company.
(20) Li Xia,female, the Han nationality from Qionglai, Sichuan Province, was born in October 1980, Member of
CPC and Intermediate Accountant with Master Degree. She graduated from Accounting Department of Sichuan
University Business and Management School. She ever was Project Manager in Financing & Acquisition Office
of Asset Management Department and Business Executive in Board Office of Sichuan Changhong Electronic Co.,
Ltd. she took the posts of Deputy GM and Financial Supervisor of Sichuan Changhong Innovation Investment Co.,
Ltd., and chairman of supervisory committee ofZhongkeMeiling Cryogenic Technology Co., Ltd. She is the
Secretary of the Board, deputy secretary of the Party, secretary of discipline inspection commission and general
counsel of the Company recently.
(21) Zhu Wenjie, male, the Han nationality from Hefei, Anhui Province, member of Communist Party of China,
born in January 1988, a master degree，graduated from University of science and technology of China as a MBA.,
he served as an accountant for big customer accounting in financial management department of Hefei Meiling Co.,
Ltd., securities affairs assistant at the office of secretary of the board, director of securities affairs, the
representative of securities affairs and staff supervisor. He has resigned form the Company on March 30, 2021 and
no longer holds staff supervisor of the Company.
2. Post-holding in shareholder’s unit
√ Applicable □ Not applicable
Drawing remuneration
Start date of End date of and allowance from
Name Shareholder’s unit Title
office term office term shareholder’s unit
(Y/N)
Director 2020.06.30 2023.06.29 N
Wu Dinggang Sichuan Changhong Electric Co., Ltd.
Deputy GM 2019.01.12 2023.06.29 Y
72
CHANGHONG MEILING CO.,LTD. Annual Report 2021
Hefei Industry Investment Holding (Group) Party Secretary,
Yong Fengshan 2015.02 - Y
Co., Ltd. Chairman
Secretary of the
Board of 2020.12.16 2023.6.29 Y
Directors
General counsel 2022.2.14 2023.6.29 N
ZhaiQilin Sichuan Changhong Electric Co., Ltd. Director of Board
2021.3.29 - N
Office
Director of Asset
Management 2021.3.29 - N
Department
Sichuan Changhong Electric Co., Ltd. Assistant to 2021.03.29 - Y
He Xintan
General Manager
Post-holding in
N/A
shareholder’s unit
3. Post-holding in other unit
√ Applicable □ Not applicable
Drawing
remuneration
Start date of End date of
Name Other unit Title and allowance
office term office term
from other unit
(Y/N)
Sichuan Zhiyijia Network Technology Co.,
Chairman 2021.01.25 - N
Ltd.
Wu
Lejiayi Chain Management Co., Ltd. Chairman 2019.04.25 - N
Dinggang
Sichuan Kuaiyidian Electrical Service Chain Chairman
2019.06.10 - N
Co., Ltd.
Hefei Venture Capital Guidance Fund Co., Chairman
2015.04. - N
Ltd.
CAS (Hefei) Technical Innovation Chairman
2015.04. - N
Engineering Institute Co., Ltd.
Yong Hefei State-owned Assets Holding Co., Ltd. Chairman 2015.04 - N
Fengshan
Chairman, General
Hefei Industry Investment Holding Co., Ltd. Manager, Secretary of 2008.06 - N
the Party Committee
Anhui Jianghuai Automobile Group Co.,
Director 2018.07.20 2022.03.25 N
Ltd.
73
CHANGHONG MEILING CO.,LTD. Annual Report 2021
Hefei Kechuang Group Co., Ltd. Chairman 2021.05 - N
Hefei Talent Development Group Co., Ltd. Chairman 2022.01 - N
Sichuan Changhong Innovation Investment
Director 2021.1.21 - N
Co., Ltd.
WIDEMIRACLELIMITED Director 2014.7.14 - N
Ganghong Industrial Co., Ltd. Director 2013.6.18 - N
Zhao Qilin
SUFFICIENTVALUEGROUPLIMITED Director 2013.6.18 - N
Changhong Jiahua (Hong Kong) Information
Director 2021.1.8 - N
Products Co., Ltd.
Anjian Holdings Co., Ltd. Director 2012.1.19 - N
Lejiayi Chain Management Co., Ltd. Director 2018.01.23 - N
Sichuan Zhiyijia Network Technology Co.,
Director 2019.07.25 - N
Ltd.
Hong Yuan Ground Energy Heat Tech. Co.,
Vice Chairman 2017.12.27 - N
Hu Zhaogui Ltd.
Sichuan Tianyou Guigu Technology Co.,
Director 2018.01.16 - N
Ltd.
Chengdu Guigu Environmental Tech. Co.,
Director 2018.06.30 - N
Ltd.
Associate professor,
Business School of Sichuan University 1995.02 - Y
master tutor
Chengdu Sibao Technology Co., Ltd. Independent director 2017.05.05 2021.12.07 Y
Mou Wen Mianyang Fulin Precision Machinery Co.,
Independent director 2017.06.23 2023.06.30 Y
Ltd.
Sichuan Junyi Digital Technology Co., Ltd. Independent director 2021.07.01 2024.06.30 Y
Tibet Mining Development Co., Ltd. Independent director 2021.03.09 2024.03.08 Y
Department Executive
University of Science and Technology of
Zhao Gang Director, Professor, 2011.04 - Y
China
Doctoral Supervisor
Hong Yiluo Technology (Shanghai) Co., Ltd. Asia Pacific Financial 2014.06 - Y
yuanjia Director
Changhong Huayi Compressor Co., Ltd. Director 2021.02.25 2024.05.12 N
Sichuan Changhong New Energy
Director 2018.05.10 2024.12.19 N
Shao Min Technology Co., Ltd.
Sichuan Changhong Electronics Holding Head of Capital
2021.03 - Y
Group Co., Ltd. Operation Dept.
Huang Hong Sichuan Changhong Electronics Holding Deputy Director of 2011.09.16 - Y
74
CHANGHONG MEILING CO.,LTD. Annual Report 2021
Group Co., Ltd. Audit Department
Pang Haitao Hefei Xingmei Asset Management Co., Ltd. Director 2018.02.05 - N
Post-holding
N/A
in other unit
4. Punishment of securities regulatory authority in recent three years to the company’s current and
outgoing directors, supervisors and senior management during the reporting period
□ Applicable √ Not applicable
(iii) Remuneration of directors, supervisors and senior executives
1. Decision-making, determine basis and actually payment of remuneration for directors, supervisors and
senior executives
(1) Procedure for deciding remunerations of directors, supervisors and senior management
Implemented in line with laws, regulations and relevant rules of “Company Law”, “Article of Association” and
“Enforcement Regulation of Remuneration and Evaluation Committee of the Board”, including:
Allowance plan of independent directors are implemented after deliberated in the Board and approved in
Shareholders’ General Meeting. Other directors and non-staff supervisors except independent directors are
received no remuneration from the Company.
Remuneration of senior executives are deliberated and approved by the Board according to remuneration
evaluation plan together with opinions of Remuneration and Evaluation Committee.
The remuneration appraisal and payment for directors and senior executive of the Company for Current Year will
disclose in the Annual Report after review without objection from Remuneration & Appraisal Committee of the
Board and submit to the BOD for Current Year.
(2) Bases on which remunerations of directors, supervisors and senior management are decided
The Company conducted the performance examination on the task of directors, supervisors and senior executives
according to the HR management policy, wages of directors, supervisors and senior executives are decided by
their performance and evaluations check by the Company. All wages are performing by the evaluation results
according to the only evaluation standard that carried by the Company.
(3) Actual payment of remunerations of directors, supervisors and senior management
Allowance of the independent directors are paid by the standards approved in Annual Shareholders’ General
Meeting, other director, who serves as senior executive at the same time, and non-staff supervisors except
independent directors did not received remuneration from the Company; remunerations for senior executives of
75
CHANGHONG MEILING CO.,LTD. Annual Report 2021
the Company are paid strictly by the unify remuneration valuation mechanism of the Company.
Directors, supervisors and senior executives of the Company has 19 in total up to 31 December 2021, actually 13
person receiving remuneration from the Company, 2 staff supervisors are received their remuneration by actual
positions (non-supervisor post); furthermore, 3 independent directors are received the allowance monthly from the
Company; the Company will pay remuneration to senior executives in line with the performance appraisal by
monthly, quarterly and annual.
During the reporting period, the Company has established the executive compensation and performance
management program for the senior management of 2021 in accordance with the main scope, the responsibilities,
the importance of the management positions of the senior management, and the compensation level of other
relevant company and position, the program includes but not limited to the company's key performance indicator
(KPI) and performance evaluation criteria, procedures and major evaluation system; the major programs of the
reward and punishment; review the performance of duties of the company's senior management and conduct the
annual performance appraisal.
At the end of Current Year, the Remuneration and Appraisal Committee combined the work report and
self-evaluation of the senior management in 2021, followed the performance evaluation criteria and procedures,
and evaluated the Key Performance Indicator (KPI) of the senior management in 2020; and other relevant
indicators of performance evaluation; proposed the remuneration amount and performance appraisal approach of
the senior management based on the job performance evaluation results and the remuneration policy, and reported
to the Board for deliberation.
2. Remuneration for directors, supervisors and senior executives in reporting period
In 10 thousand yuan
Total Whether
remuneration remuneration
Name Title Sex Age Post status obtained from the obtained from
Company (before related party of
taxes) the Company
Currently in Y
Wu Dinggang Chairman M 49 0
office
Currently in N
Zhong Ming Director, President M 49 45.56
office
Currently in 0 Y
Yong Fengshan Director M 53
office
Currently in 35.08 N
Kou Huameng Director, Deputy president M 52
office
76
CHANGHONG MEILING CO.,LTD. Annual Report 2021
Currently in 60.22 N
Hu Zhaogui Director, Deputy president M 48
office
Currently in 0 Y
Zhao Qilin Director M 46
office
Currently in 11.90 N
Hong yuanjia Independent director M 46
office
Currently in 11.90 N
Mou Wen Independent director F 55
office
Currently in 11.90 N
Zhao Gang Independent director M 43
office
Currently in 0 Y
Shao Min Chairman of Supervisory M 39
office
Currently in 0 Y
He Xintan Supervisor M 41
office
Currently in 0 Y
Huang Hong Supervisor F 51
office
Currently in 32.33 N
Ji Ge Staff supervisor F 40
office
Currently in 29.16 N
Sun Hongying Staff supervisor F 50
office
Currently in 71.31 N
Liu Hongwei Executive deputy president M 58
office
Currently in 35.33 N
Huang Danian Deputy president M 52
office
Currently in 380.12 N
Tang Youdao Deputy president M 51
office
CFO (person in charge of Currently in 42.59 N
Pang Haitao M 46
finance) office
Currently in 30.31 N
Li Xia Secretary of the Board F 41
office
Chen Ye Director M 57 Office leaving 0 Y
Zhu Wenjie Staff supervisor M 34 Office leaving 5.85 N
Total -- -- -- -- 803.56 --
VI. Responsibility performance of directors during the reporting period
(i) The board of directors during the reporting period
77
CHANGHONG MEILING CO.,LTD. Annual Report 2021
Session of
Date of meeting Disclosure date Meeting resolutions
meeting
Totally 5 proposals including Invested Wealth Management Products with Part of the Idle
Fund Raising and Investment and Establishment of a Wholly-Owned Subsidiary by
The 5th
Zhongke Meiling Cryogenic Technology Co., Ltd- Controlling Subsidiary of the Company
session of 2021-3-2 2021-3-3
are deliberated and approved in the Meeting, for details, please refer to the "Resolution
10th BOD
Notice of the 5th session of 10th BOD" (No. 2021-008) on the cninfo website (Juchao
Website (www.cninfo.com.cn)).
Totally 27 proposals including Report on Works of BOD for year of 2020, Annual Report
The 6th of 2020 and Its Summary and Financial Statement Report for year of 2020 are deliberated
session of 2021-3-29 2021-3-31 and approved in the Meeting, for details, please refer to the "Resolution Notice of the 6th
10th BOD session of 10th BOD" (No. 2021-013) on the cninfo website (Juchao Website
(www.cninfo.com.cn)).
Totally 6 proposals including The Q1 Report of 2021, Provision for Credit Losses and
The 7th
Provision for Decline in Value of Inventories are deliberated and approved in the Meeting,
session of 2021-4-19 2021-4-20
for details, please refer to the "Resolution Notice of the 7th session of 10th BOD" (No.
10th BOD
2021-028) on the cninfo website (Juchao Website (www.cninfo.com.cn)).
Totally 3 proposals including Investment in Building the Industrial Internet Service
Capacity by Subsidiary- Hefei Meiling Wulian Technology Co., Ltd, The Company Applied
The 8th for a Special Credit Line of Up to 400 million yuan for the Note Pool from Jiujiang Bank,
session of 2021-5-26 2021-5-27 Hefei Branch and Holding the First Extraordinary Shareholders General Meeting of 2021
10th BOD are deliberated and approved in the Meeting, for details, please refer to the "Resolution
Notice of the 8th session of 10th BOD" (No. 2021-038) on the cninfo website (Juchao
Website (www.cninfo.com.cn)).
Totally 9 proposals including Purchasing the Liability Insurance for
Director/Supervisor/Senior Executives, Increased the Expected Routine Related
The 9th Transactions for year of 2021 and The Company Applied for a Maximum Credit Line of
session of 2021-7-12 2021-7-13 300 million yuan from Hefei Branch of China Minsheng Bank are deliberated and
10th BOD approved in the Meeting, for details, please refer to the "Resolution Notice of the 9th
session of 10th BOD" (No. 2021-050) on the cninfo website (Juchao Website
(www.cninfo.com.cn)).
Totally 10 proposals including Semi-Annual Report (Full-text) of 2021 and its Summary,
The 10th Provision for Credit Losses and Provision for Decline in Value of Inventories are
session of 2021-8-16 2021-8-18 deliberated and approved in the Meeting, for details, please refer to the "Resolution Notice
10th BOD of the 10th session of 10th BOD" (No. 2021-060) on the cninfo website (Juchao Website
(www.cninfo.com.cn)).
Totally 2 proposals including Continue Implementation and Adjustment Partially of the
Repurchase Program of Certain Domestic Listed Foreign Shares (B Share) and Holding
The 11th
the Third Extraordinary Shareholders General Meeting of 2021 are deliberated and
session of 2021-8-24 2021-8-25
approved in the Meeting, for details, please refer to the "Resolution Notice of the 11th
10th BOD
session of 10th BOD" (No. 2021-067) on the cninfo website (Juchao Website
(www.cninfo.com.cn)).
78
CHANGHONG MEILING CO.,LTD. Annual Report 2021
Totally 18 proposals including The Q3 Report of 2021, Provision for Credit Losses,
The 12th Provision for Decline in Value of Inventories and Disposal of Non-Current Assets are
session of 2021-10-19 2021-10-20 deliberated and approved in the Meeting, for details, please refer to the "Resolution Notice
10th BOD of the 12th session of 10th BOD" (No. 2021-081) on the cninfo website (Juchao Website
(www.cninfo.com.cn)).
Totally 12 proposals including Amend Some Article of the Article of Association, Amend
The 13th Some Articles of Rules of Procedure for Shareholders General Meeting and Expected
session of 2021-12-6 2021-12-7 Routine Related Transactions for year of 2022 are deliberated and approved in the
10th BOD Meeting, for details, please refer to the "Resolution Notice of the 13th session of 10th
BOD" (No. 2021-091) on the cninfo website (Juchao Website (www.cninfo.com.cn)).
One proposal on By-Election of the Non-independent Director of 10th BOD of the
The 14th
Company was deliberated and approved in the Meeting, for details, please refer to the
session of 2021-12-12 2021-12-13
"Resolution Notice of the 14th session of 10th BOD" (No. 2021-101) on the cninfo website
10th BOD
(Juchao Website (www.cninfo.com.cn)).
Totally 3 proposals including Increase in Expected Routine Related Transactions for 2021,
Agree Sichuan Zhiyijia Network Technology Co., Ltd Provided External Guarantee and
The 15th
Holding the First Extraordinary Shareholders General Meeting of 2022 are deliberated
session of 2021-12-20 2021-12-21
and approved in the Meeting, for details, please refer to the "Resolution Notice of the 15th
10th BOD
session of 10th BOD" (No. 2021-104) on the cninfo website (Juchao Website
(www.cninfo.com.cn)).
(ii) The attending of directors to Board meetings and shareholders general meeting
The attending of directors
Times of
Times of Board
Times of Times of Times of Absent the Meeting for attending the
meeting supposed Times of
Director present in attending by entrusted the second time in a row shareholder
to attend in the Absence
person communication presence (Y/N) general
report period
meeting
Wu Dinggang 11 2 9 0 0 N 3
Zhong Ming 11 2 9 0 0 N 5
Yong
11 0 11 0 0 N 0
Fengshan
Kou
11 2 9 0 0 N 3
Huameng
Chen Ye 9 1 8 0 0 N 2
Zhao Qilin 0 0 0 0 0 N 0
Hu Zhaogui 11 1 10 0 0 N 0
Hong yuanjia 11 1 10 0 0 N 1
Mou Wen 11 2 9 0 0 N 2
79
CHANGHONG MEILING CO.,LTD. Annual Report 2021
Zhao Gang 11 2 9 0 0 N 4
Explanation of absent the Board Meeting for the second time in a row
During the reporting period, none of the directors failed to attend two consecutive Board Meeting in person.
(iii) Objection for relevant events from directors
Whether directors come up with objection about company’s relevant matters or not
□ Yes √ No
Directors has no objections for relevant events in reporting period
(iv) Other explanation about responsibility performance of directors
Whether the opinions from directors have been adopted or not
√ Yes □ No
During the reporting period, the directors of the company strictly followed the Company Law, the Securities Law,
the Listing Rules of Shenzhen Stock Exchange, and the Self-Discipline Supervision Guidelines for Listed
Companies of Shenzhen Stock Exchange No. 1 - Standardized Operation of Main Board Listed Companies" and
other laws and regulations, actively attended the company's board meetings and the company's general meeting of
shareholders, performed duties conscientiously and diligently, made prudent and scientific decisions on various
matters reviewed by the company's board meetings, and all their professional suggestions on the company’s major
decisions have been adopted .
VII. The special committees under the board during the reporting period
Specific
Number
Other circumstances
Committee of Important comments and
Members Date of Meeting content performance of the
name meetings suggestions made
meeting of duties objection (if
held
applicable)
Wu Reviewed one proposal on
Dinggang, the Investment and
Yong Establishment of a The proposal was
Fengshan, Wholly-owned Subsidiary deliberated and approved Not
2021-2-25 N/A
Zhong by the Holding Subsidiary and agreed to submit to the applicable
Strategy Ming, Zhongke Meiling BOD for consideration
2
Committee Kou Cryogenic Technology Co.,
Huameng, Ltd.
Hu
Reviewed two proposals on The above mentioned
Zhaogui, Not
2021-3-19 the Company's 2021 proposal was deliberated N/A
Chen Ye, applicable
Development Plan and and approved and agreed to
Zhao
80
CHANGHONG MEILING CO.,LTD. Annual Report 2021
Gang Proposal on the Company's submit to the BOD for
Shareholders Return consideration
Planning in the Next Three
Years (2021-2023).
Reviewed two proposals on
the Financial Statement
Report for year of 2020 and
The above mentioned
Arrangement of Internal Not
2021-1-28 proposals are deliberated N/A
Control Auditing and applicable
and approved
Un-audited Financial
Accounting Statement for
year of 2020
Reviewed one proposal on
Preliminary Draft of the The proposal was Not
2021-3-10 N/A
Audit on Financial deliberated and approved applicable
Statement for year of 2020
The proposal were
Reviewed five proposals
deliberated and approved
on” Audited Financial
and agreed to submit the
Statement Report of 2020”,
following 4 proposals as ”
“Auditing Report of
Audited Financial
Hong Internal Control for year of
Statement Report of
yuanjia, 2020”, ‘Summary Report
Audit 2020”,“Auditing Report of
Mou Wen, 6 on Auditing Works for year
Committee Internal Control for year of
Zhao of 2020 from Shine Wing Not
2021-3-28 2020”,“Auditing Institution N/A
Gang Certified Public Account”, applicable
for Financial Report of
“Auditing Institution for
2021 and Internal Control
Financial Report of 2021
Auditing Re-engagement
and Internal Control
and Remuneration Paid”
Auditing Re-engagement
and “Opening Business of
and Remuneration Paid”,
Forward Exchange” to the
and “Opening Business of
BOD for consideration
Forward Exchange”
The proposal was
Reviewed one proposal on
deliberated and approved Not
2021-4-16 the “Financial Statement of N/A
and agreed to submit to the applicable
1Q of 2021”
BOD for consideration
The proposal was
Reviewed one proposal on
deliberated and approved Not
2021-8-6 the “Financial Statement of N/A
and agreed to submit to the applicable
Semi-annual 2021”
BOD for consideration
2021-10-15 The proposal was Not N/A
81
CHANGHONG MEILING CO.,LTD. Annual Report 2021
Reviewed one proposal on deliberated and approved applicable
the “Financial Statement of and agreed to submit to the
3Q of 2021” BOD for consideration
Reviewed one approved on
the Proposal on the
The proposal was
Qualification Examination
deliberated and approved Not
Mou Wen, 2021-3-19 of the Company’s BOD for N/A
and agreed to submit to the applicable
Wu the Senior Managers
BOD for consideration
Dinggang, Planned to Be Appointed
Nomination
Hong 2 by the Company”
Committee
yuanjia, Reviewed one proposal
Zhao Proposal to Review the The proposal was
Gang Qualification of deliberated and approved Not
2021-12-10 N/A
Non-Independent Directors and agreed to submit to the applicable
to be Elected by 10th BOD BOD for consideration
of the Company
The proposal was
Zhao Reviewed one approved
deliberated and approved
Gang, Wu onthe "Appraisal and
Remuneration by the Meeting and agreed
Dinggang, Payment of Remuneration Not
and Appraisal 1 2021-3-19 to submit to the annual N/A
Mou Wen, of Directors and Senior applicable
Committee meeting of the Board for
Hong Executives in Current Year
consideration as part of the
yuanjia 2020"
Annual Report
VIII. Works from Supervisory Committee
Whether the Company has risks or not in reporting period that found in supervisory activity from supervisory
committee
□Yes √ No
Supervisory committee has no objection about supervision events in reporting period
IX. Staff of the Company
(i) Numbers, professional structure and education background
On-job employee in parent company at period-end (people) 4,614
On-job employee in main subsidiary at period-end(people) 8,201
Total on-job employees at period-end(people) 12,815
Current total payroll(people) 12,815
Number of retired employees with expenses paid by the parent company
83
and main subsidiary (people)
Professional structure
Types of professional category Numbers of professional category (people)
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CHANGHONG MEILING CO.,LTD. Annual Report 2021
Production staff 7,200
Salesman 2,822
Technician 2,273
Financial staff 195
Administration staff 325
Total 12,815
Education background
Type of education background Numbers (people)
High school and below 8,283
Junior college 1,981
Undergraduate 2,380
Master and above 171
Total 12,815
(ii) Remuneration policy
The Company formulated human resources and compensation policy conducive to sustainable development of
enterprise according to the provisions of relevant laws and policies promulgated by the state and to the Company's
actual situation.
In order to implement the core values of co-creation and sharing, especially to mobilize the work initiative and
enthusiasm of grass-roots employees, based on the overall design idea of “building a small management & control
platform, making a refined business platform and a one-line decision-making power”, further decentralization,
effectively activate the team. In order to comprehensively and effectively evaluate and quantitatively evaluate
employee performance growth, the guide departments actively found out where they had lagged behind, made up
for shortcomings, and continued to narrow the gap with benchmarks. The company made the design, monitoring
and evaluation rules to performance growth indicator (GPI) system, which effectively guided employee
performance growth and continuously improved the professional ability and work efficiency of employees. At the
same time, an applicable compensation adjustment mechanism was established based on the growth level of
employees, continuously motivating employees to pursue excellence and stimulating vitality. In order to promote
the achievement of the performance of each unit, the company optimized and adjusted the incentive system this
year, strengthened the quantitative reflection of incremental value and operating results, and adjusted the incentive
system to annual operating results incentives and process value creation incentives, so as to improve the
operational efficiency and vitality of business units. Continued to promote the application of the whole-process
performance management system, optimized the information management of performance communication,
performance feedback, and growth communication mechanisms, and encouraged employees to develop together
with the company. The company established and optimized a unified evaluation mechanism for job promotion, set
up position systems and promotion channels, implemented the point system evaluation criteria and internal job
83
CHANGHONG MEILING CO.,LTD. Annual Report 2021
competition mechanism, and incorporated annual evaluation and competition into the normalization, and
gradually formed the employment mechanism of “those who want to do a job have a chance, those who can do a
job have a platform, and those who get things done have a status”. At the same time, the company shaped the
corporate culture by providing various holidays, allowances, condolences, and organizing a variety of leisure
activities, sports culture festival, carnivals, etc. so as to improve the employee satisfaction.
(iii) Training plans
Training plan: The Company has established the Human Resources Strategic Layout,Training Management
Program, Annual Talent Development & Training Plan and other systems and standard work flows, set up the
staff capacity model, built Meiling online learning system and the knowledge assets management system of
Changhong Meiling and gradually established the growth mechanism by combining the training with the
individual employee development, and combining the qualification promotion with the career development.
1. The mechanism for the selection, education and use of reserve talents gradually presented. The Company
established a clear evaluation model for talent standards, completed the talent standards for management position,
supervisory professional position and professional positions in each series; focused on advancing the project for
talent construction, and optimized the high-level talent development echelons such as reserve leaders, reserve
cadres, reserve leaders, and outstanding university students, and realized the dynamic talent management;
establish succession maps for each sequence of talents, and clarify the ability status of existing talent teams and
future talent succession systems.
2. Accurate training improved training effect. In order to effectively support the company's business policy of "one
goal, three main lines", we built a multi-level and multi-category talent training system based on business needs.
On the one hand, improved the training enthusiasm and professional ability of the trainees through the project
points system, industry exchanges and other activities, on the other hand, aiming at the common shortcomings of
the team and the shortcomings of personal ability, introduced external training courses and internal course
development to effectively promote the precise training plan. At the same time, we established a classified
management and organizational guarantee system for training projects, and strengthened training process
management through methods such as course directional push, node management and control, project review, and
training examinations, and the training effect and the number of talent promotions have gradually emerged.
3. Built an internal knowledge asset management system, jointly built an internal knowledge asset information
system with a third party, and redefined the company's knowledge asset standards and organizational guarantee
system. On the one hand, we integrated the online learning system, and improve the unified planning,
classification, and tag retrieval of the knowledge asset management system and the knowledge system of online
learning system, effectively established the prototype of the company-level knowledge assets, and we would
continue to supplement and improve knowledge assets in the later stage. On the other hand, continued to promote
the supplement and update of Meiling's knowledge assets database of "technology, management, manufacturing,
84
CHANGHONG MEILING CO.,LTD. Annual Report 2021
quality, safety and environmental protection". On the basis of "internal trainer certification system" and
"benchmark job knowledge extraction project", optimized professional series of live courses, and internalized the
company's standardized talent knowledge base, and carried out inheritance and influence.
(iv) Labor outsourcing
□ Applicable √ Not applicable
X. Profit distribution plan and capitalizing of common reserves plan
(i) Formulation, Implementation and Adjustment of Profit Distribution Policy Especially Cash Dividend
policy during the Reporting Period
√ Applicable □ Not applicable
During the reporting period, the company has strictly executed the profit distribution policy in accordance with
the "Articles of Association", the formulation and implementation of the company's cash dividend policy are in
line with the provisions of "Articles of Association" and the requirements of the resolutions of shareholders'
meeting, the dividends standards and proportion have been definite and clear, relevant decision-making
procedures and mechanisms have been complete, the responsibilities of independent directors have been clear and
have played its due role, minority shareholders have had the opportunities to fully express their views and
aspirations, and the legitimate interests of minority shareholders have been maintained. In addition, the
“Changhong Meiling Co., Ltd. Shareholders Return Planning in the Next Three Years (2021-2023)” approved by
the company's board of directors and the resolutions of shareholders’ general meeting has made clear plans for the
form and priority of profit distribution, the interval of profit distribution, the specific conditions and proportions of
cash dividends, and the specific conditions for issuing stock dividend.
In the reporting period, the Company implemented Profit distribution plan for year of 2020, that is, based on the
1,035,528,412 shares (deducted the 9,069,469 B-share repurchased which are not participated in distribution from
total share capital of the Company dated December 31, 2020, that is 1,044,597,881 shares), distribute 0.5 yuan
(tax included) in cash for every 10 shares held by all shareholders of the Company, total cash dividend of
51,776,420.60 yuan was distributed.
Special explanation on cash dividend policy
Satisfy regulations of General Meeting or requirement of Article of Association (Y/N): Y
Well-defined and clearly dividend standards and proportion (Y/N): Y
Completed relevant decision-making process and mechanism (Y/N): Y
Independent directors perform duties completely and play a proper role (Y/N): Y
Minority shareholders have opportunity to express opinions and demands totally and their legal Y
85
CHANGHONG MEILING CO.,LTD. Annual Report 2021
rights are fully protected (Y/N):
Condition and procedures are compliance and transparent while the cash bonus policy adjusted or
Y
changed (Y/N):
(ii) The Company is profitable during the reporting period and the parent company has positive profit
available for distribution to shareholders without cash dividend distribution plan proposed
□ Applicable √ Not applicable
(iii) Profit distribution plan and capitalizing of common reserves plan for the Period
√ Applicable □ Not applicable
Bonus shares for every 10-share (Share) 0
Dividends for every 10-share (RMB) (Tax included) 0.5
Shares added for every 10-share base (Share) 0
Equity base of distribution plan (Share) 1,029,923,715
Total cash dividend (RMB) (Tax included) 51,496,185.75
Cash dividend for other ways (i.e. repurchased) (RMB) 16,501,235.20
Total cash dividend (including other way) (RMB) 67,997,420.95
Profits available for distribution (RMB) 733,649,425.65
Ratio of cash dividend (including other way) in total profit
100%
distribution
Cash dividend
Taking the total share capital on the equity registration date of the company’s future implementation of the 2021 annual equity
distribution plan as the base, distribute cash dividends of 0.5 yuan (tax included) for every 10 shares to all shareholders, not giving
bonus shares, and not converting capital reserve in to equity.
On February 18, 2022, the implementation of shares buy-back of domestically listed foreign shares (B-Share) was completed and
the cancellation of the buy-back shares are finished on March 2, 2022. After cancellation, total share capital of the Company
amounted to 1,029,923,715 shares, and the matters relating to the registered capital reduction and Article of Association
amendment have yet to be submitted to the shareholders general meeting for consideration.
Detail explanation on profit distribution or capitalization from capital public reserve
For year of 2021, the individual statement of the parent company show net profit of 67,464,464.66 yuan, according to the
auditing from Shine Wing Certified Public Accountants (LLP). In accordance with relevant regulations, the retained profit at
beginning of Current Year amounted as 943,879,339.46 yuan, deducted the 2020 profit distributed 51,776,420.60 yuan and
after extract for statutory surplus reserve 6,746,446.47 yuan, the retained profit in individual statement of the parent company
cumulative counted as 952,820,937.05 yuan at end of 2021. In addition, for year of 2021, the net profit attributable to owners of
parent company amounted as 51,898,388.84 yuan, caliber of the consolidated statement undistributed profit at the beginning of
the year is 740,754,202.23 yuan, deducted the 2020 profit distributed 51,776,420.60 yuan and after extract for statutory
surplus reserve 6,746,446.47 yuan, accumulated retained profit according to the consolidated statement at the end of 2021
86
CHANGHONG MEILING CO.,LTD. Annual Report 2021
counted as 734,129,724.00 yuan.
According to relevant regulations, the company's profit distribution shall be based on the profit available for distribution of the
parent company, and shall comply with the principle of the lower of the profit accumulative available for distribution in the
consolidated statement and the parent company's statement. Therefore, the profit available for distribution in 2021 is the cumulative
undistributed profit of 734,129,724.00 yuan in the consolidated statement at the end of 2021.
Pursuit to relevant rules and regulation of Article of Association, and considering the interest of shareholders and long-term
development needs of the Company, proposed recommendations:Taking the total share capital on the equity registration date of the
company’s future implementation of the 2021 annual equity distribution plan as the base, distribute cash dividends of 0.5 yuan (tax
included) for every 10 shares to all shareholders, not giving bonus shares, and not converting capital reserve in to equity. On
February 18, 2022, the implementation of shares buy-back of domestically listed foreign shares (B-Share) was completed and the
cancellation of the buy-back shares are finished on March 2, 2022. After cancellation, total share capital of the Company amounted
to 1,029,923,715 shares, and the matters relating to the registered capital reduction and Article of Association amendment have yet
to be submitted to the shareholders general meeting for consideration. Taking the total 1,029,923,715 shares after cancellation as
the base, a cash dividend of 51,496,185.75 yuan is expected to be paid.
After distribution, the retained profit of the parent company amounted as 901,324,751.30 yuan, rests of the retained profit will
carry-over for distribute in later years.
XI. Implementation of the Company’s stock incentive plan, employee stock ownership plan or other
employee incentives
□ Applicable √ Not applicable
The Company has no equity incentive plan, employee stock ownership plans or other employee incentives.
XII. Construction and implementation of internal control system during the reporting period
(i) Construction and implementation of internal control
In accordance with the Basic Norms for Enterprise Internal Control and its supporting guidelines, and the
Information Disclosure Compilation Rules for Companies Publicly Issuing Securities No. 21 - General Provisions
on Annual Internal Control Evaluation Reports jointly issued by the China Securities Regulatory Commission and
the Ministry of Finance and other relevant regulations, and combined with the Company's internal control system
and internal control evaluation methods, the company organized its internal control work, effectively implemented
internal control, and continuously improved and optimized the company's internal control system so as to adapt to
the needs and changes of the internal and external environment.
The company's 2021 Annual Internal Control Self-Assessment Report fully, truly and accurately reflected the
actual situation of the company's internal control. The units, businesses and matters included in the assessment
scope, as well as high-risk areas, covered the main aspects of the company's operation and management, and the
company maintained effective internal controls in high-risk areas and in all material aspects. During the reporting
period, the company had no major defects and significant defects in internal control.
(ii) Details of major defects in IC appraisal report that found in reporting period
87
CHANGHONG MEILING CO.,LTD. Annual Report 2021
□Yes √ No
XIII. Management and controls on the subsidiary during reporting period
Problems
Name of Integration Follow-up
Integration plan encountered in Actions taken Resolve progress
company progress resolution plan
integration
Not applicable - - - - - -
XIV. Internal control self-assessment report or internal control audit report
(i) Appraisal Report of Internal Control
Date of evaluation report of internal control disclosed (Full-text) 2022-3-31
Index of evaluation report of internal control disclosed (Full-text) Juchao Website (www.cninfo.com.cn)
The ratio of the total assets of units included in the scope of evaluation accounting for the total
99.48%
assets on the company's consolidated financial statements
The ratio of the operating income of units included in the scope of evaluation accounting for the
99.58%
operating income on the company's consolidated financial statements
Defects Evaluation Standards
Category Financial Reports Non-financial Reports
1. Material defect: severally or jointly with other defects, will lead to material
wrong reporting in financial reports being not able to prevented or found or
Occurrence of the followings shall be
rectified in a timely manner. Occurrence of the followings will be deemed as
deemed as material defect, otherwise as
material defect:
major defect or general defect subject to
1. inefficiency of environment control;
the level of influence.
2. fraud of directors, supervisors and senior management;
1. breach of national laws, regulations or
3. The external auditor finds material wrong reporting in current financial
regulatory documents;
statement, while the Company has not found such reporting during its
2. procedure for making significant
operation;
decisions is not scientific;
Qualitative 4. The material defect identified and reported to the management fails to be
3. absence of system may lead to invalid
criteria rectified in a reasonable time period;
system;
5. The audit committee and audit department of the Company exercise invalid
4. Material or major defects are not likely
supervision upon internal control;
to rectify;
6. Other defects which may affect financial statement users to make correct
5. Large negative effects on the company
judgment.
and disclosed in the form of
2. Major defect: severally or jointly with other defects, will lead to wrong
announcement;
reporting in financial reports being not able to prevented or found or rectified
6. Other issues that materially affect the
in a timely manner which still needs attention from the management though it
Company.
doesn’t reach or exceed material defect as described above. Occurrence of the
followings will be deemed as major defect:
88
CHANGHONG MEILING CO.,LTD. Annual Report 2021
(1) Financial losses caused by guaranteeing and investing in securities and
financial derivatives transactions and disposing property right and stock right
without authorization;
(2) The company's financial staff or other relevant business personnel have
unclear powers and responsibilities or job chaos, or are suspected of being
involved in economic or job-related crimes and have been transferred to the
judiciary;
(3) Punishment or severely negative impacts on the company's image due to
the bias implementation of the policy or accounting errors, etc.;
(4) Financial losses caused by destroying, concealing, or altering the important
original evidences at will, such as invoices and checks, etc.
(5) Cash income is not entered into the account book, or public funds are
deposited in private account or "private coffer" is established by breaking the
rules.
3. General defect: other internal control related defects that do not constitute
material defects or major defect.
1. Proportion of direct property loss in
total operating income: Material defect:
wrong reporting ≧0.1%; Major defect:
0.05% ≤ wrong reporting＜0.1%; General
1. Proportion of potential wrong reporting in total operating income: defect: wrong reporting＜0.05%.
Material defect: wrong reporting ≧0.5%; Major defect: 0.1% ≤ wrong 2. Proportion of direct property loss in
reporting＜0.5%; General defect: wrong reporting＜0.1%. total profit: Material defect: wrong
2. Proportion of potential wrong reporting in total profit: Material defect: reporting ≧10%; Major defect: 5% ≤
wrong reporting ≧10%; Major defect: 5% ≤ wrong reporting＜10%; General wrong reporting＜10%; General defect:
Quantitative defect: wrong reporting＜5%. wrong reporting＜5%.
standard 3. Proportion of potential wrong reporting in total assets: Material defect: 3. Proportion of direct property loss in
wrong reporting ≧0.5%; Major defect: 0.1% ≤ wrong reporting ＜ 0.5%; total assets: Material defect: wrong
General defect: wrong reporting＜0.1%. reporting ≧0.2%; Major defect: 0.1% ≤
4. Proportion of potential wrong reporting in total owners’ equity: Material wrong reporting＜0.2%; General defect:
defect: wrong reporting ≧0.5%; Major defect: 0.1% ≤ wrong reporting＜0.5%; wrong reporting＜0.1%.
General defect: wrong reporting＜0.1%. 4. Proportion of direct property loss in
total owners’ equity: Material defect:
wrong reporting ≧0.2%; Major defect:
0.1% ≤ wrong reporting＜0.2%; General
defect: wrong reporting＜0.1%.
Amount of significant defects in financial
0
reports
Amount of significant defects in non-financial
0
reports
Amount of important defects in financial 0
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CHANGHONG MEILING CO.,LTD. Annual Report 2021
reports
Amount of important defects in non-financial
0
reports
(ii) Auditing report of internal control
√ Applicable □ Not applicable
Deliberation section of auditing report of IC
We consider that: in all major aspects, Changhong Meiling Co., Ltd. has efficiency in financial report of internal control dated 31 December
2021 according to Basic Standards of Internal Control for Enterprise and relevant regulations.
Disclosure details of audit report of internal control Disclosed
Disclosure date of audit report of internal control
2022-3-31
(full-text)
Index of audit report of internal control (full-text) Juchao Website (www.cninfo.com.cn)
Opinion type of auditing report of IC Standard unqualified
whether the non-financial report had major defects No
Whether CPA carries out qualified opinion for audit report of internal control or not
□Yes √ No
Whether the opinions are consistent in audit report of internal control carrying out by CPA and the self-evaluation
report of the Board or not
√ Yes □ No
XV. The rectification of self-examination problems in the special actions on governance of listed companies
According to the Announcement on Launching Special Actions on the Governance of Listed Companies" (CSRC
[2020] No. 69) of China Securities Regulatory Commission, the company followed the principle of seeking truth
from facts, strictly compared with the "Special Self-examination List on Governance of Listed Companies", and
carefully sorted out the existing problems. Through this self-examination, the Company believed that its corporate
governance complied with the requirements of the Company Law, the Securities Law, and the Standardized
Operation of Main Board Listed Companies and other laws and regulations. The problems found in the company's
self-examination and sorting out and the rectifications were as follows:
(i) Subsidiary holding shares of listed companies and the rectification
1. Meiling Group, a wholly-owned subsidiary of the company, held 1,141,053 restricted shares of the Company.
The restricted shares held by Meiling Group were the consideration shares received for the share reform on behalf
90
CHANGHONG MEILING CO.,LTD. Annual Report 2021
of other non-tradable shareholders in the company's reform plan for non-tradable shares. In March 2016,
according to the approval of the State-owned Assets Supervision and Administration Commission of the State
Council, the 49,477,513 state-owned shares (including the already held 47,823,401 shares and the unrecovered
relevant rights of the consideration of 1,654,112 shares received for the share reform on behalf of other
non-tradable shareholders in the company's reform plan for non-tradable shares) of the Company held by Hefei
Xingtai Holdings Group Co., Ltd., the company's original shareholder, should be transferred to Industry
Investment Group free of charge. Therefore, the restricted shares of the Company held by Meiling Group should
be transferred to Industry Investment Group free of charge.
2. According to the approval of the State-owned Assets Supervision and Administration Commission of the State
Council and the regulations of relevant departments, Meiling Group should transfer the shares paid on behalf of
others and related rights held by it to Industry Investment Group at one time free of charge after recovering all the
1,654,112 shares of consideration for the share reform. At present, Meiling Group has only recovered 1,141,053
shares, and the holders of the remaining consideration shares for the share reform have been unable to get in touch
for many times and for many years, there is great uncertainty about the time when all the shares will be recovered.
However, the company still actively promotes the recovery of the shares advanced by Meiling Group, and handles
the relevant procedures for free transfer as soon as possible after all the consideration shares for the share reform
are recovered. Prior to this, the company's restricted shares held by Meiling Group would not enjoy any rights as
shareholders during the holding period, including voting rights, dividend rights, etc.
(ii) The voting system did not comply with laws and regulations and the rectifications
1. According to Article 90 of the Securities Law of the People's Republic of China (2019 Amendment), "the board
of directors, independent directors, shareholders holding more than 1% of voting shares of a listed company or the
investor protection institutions established in accordance with laws, administrative regulations or the provisions of
securities regulatory authority of the State Council may act as solicitors”, and the company should complete the
scope of in accordance with the aforementioned regulations.
2. On December 6 and December 23, 2021, the company held the thirteenth session of the tenth board of directors
and the fourth extraordinary general meeting of shareholders in 2021, it was agreed that the company would
complete the solicitation subject for voting rights in the Articles of Association and the Rules of Procedure for the
General Meeting of Shareholders (Announcement No. 2021-091, No. 2021-093, No. 2021-109), and the industrial
and commercial registration of changes has been completed.
(iii) The controlling shareholder, the actual controller and the listed company shared the trademark and the
91
CHANGHONG MEILING CO.,LTD. Annual Report 2021
rectifications
1. The company and the controlling shareholder shared trademark. Regarding the shared trademark, only the
controlling shareholder authorized its "Changhong" trademark to Changhong Meiling for free use, and there was
no such situation that Changhong Meiling authorized the "Meiling" trademark to be used by the controlling
shareholder.
2. In view of the fact that Changhong Meiling and the controlling shareholder used the controlling shareholder’s
"Changhong" trademark in different product businesses, which neither caused competition or conflict with the
business of both parties, nor affected the independence of Changhong Meiling as a listed company. In future, the
company will legally and compliantly use trademarks in strict accordance with relevant laws and regulations.
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CHANGHONG MEILING CO.,LTD. Annual Report 2021
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CHANGHONG MEILING CO.,LTD. Annual Report 2021
Section V. Environmental and Social Responsibility
I. Major environmental
The listed Company and its subsidiary whether belongs to the key sewage units released from environmental protection department
√ Yes □ N
number Discharg
Major pollutants and Total
Name of Way of of concentration of e beyond
name of typical Distribution of discharge outlets Pollutants discharge standards enacted discharge Total discharge volume certified
company or discharge discharg discharge the
pollutants volume
subsidiary e outlets standards
Two outlets at J05 workshop "Sichuan Province Fixed Pollution Source Air
Sichuan Changhong
and one outlet at J07 workshop, Volatile Organic Compound Emission Standard
VOC (volatile Organized Air-conditioner Co., Ltd. has Not
3 No 128, Sanjiang Road, ≤18.1mg/m3 DB51/2377-2017" Table 3 standard 3,540.57kg completed the pollutant exceeded
organic compounds) emissions
Economic Development Zone, requirements, that is, volatile organic discharge registration on the
Mianyang City compounds <60mg/m3.
national pollutant discharge
Sichuan Two outlets at J05 workshop (it permit management information
"Comprehensive Emission Standard of Air
Changhong belongs to the same output as platform and obtained the
Air-conditi Organized Pollutants GB16297-1996" Table 2 secondary Not
oner Co., Nitrogen oxides emissions
2 J05VOC), No 128, Sanjiang ≤26mg/m3
standard requirements, that is, the
1,881.23kg registration receipt in
exceeded
Ltd.
注
Road, Economic Development accordance with the "Pollution
concentration of nitrogen oxides <240 mg/m3
Zone, Mianyang City Permit Management Measures
(Trial)", the "Fixed Pollution
Two outlets at J05 workshop (it
Organized "Comprehensive Emission Standard of Air Source Pollution Permit Not
belongs to the same output as
Sulfur dioxide 2 ＜3mg/m3 Pollutants GB16297-1996" Table 2 874.98kg Classification Management exceeded
emissions J05VOC), No 128, Sanjiang requirements, that is, the SO2<120 mg/m3
Road, Economic Development Directory (2019 Edition)", etc.,
94
CHANGHONG MEILING CO.,LTD. Annual Report 2021
Zone, Mianyang City there is no requirement for the
company's total emissions in the
Two outlets at J05 workshop "Comprehensive Emission Standard of Air
pollution discharge registration
and one outlet at J07 workshop, Pollutants GB16297-1996" Table 2 secondary
Organized Not
Particulate matter 4 No 128, Sanjiang Road, ≤1.7mg/m3 standard requirements, that is, the 933.23kg
emissions exceeded
Economic Development Zone, concentration of particulate matter <120
Mianyang City mg/m3
Note: In 2021, Bureau of Ecology and Environment of Mianyang issued the "List of Key Sewage Units in Mianyang for year of 2021", and included Changhong Air-conditioner in the list of key
soil environment pollution supervision
95
CHANGHONG MEILING CO.,LTD. Annual Report 2021
1. Construction and operation of pollution prevention facilities
The Company and its subsidiaries actively respond to the national ecological civilization construction plan, and
actively participate in national environmental protection works in line with the purpose of actively fulfilling its
corporate social responsibility. In recent years, The Company and its subsidiaries have actively explored the
introduction of advanced management concepts and methods, and invested a large amount of money in the
purchase of pollution control equipment and facilities. And realized emission reduction by scientific technical
methods by the investment in installation of activated carbon adsorption treatment equipment, welding dust
purifier facilities etc. At the same time, in order to ensure the effective operation of the management equipment
and facilities, the Company and its subsidiaries have adopted such management measures as setting up special
personnel to manage and maintain the operation of the equipment and facilities, formulating proper rules for
operation and maintenance of the equipment and facilities, emergency disposal regulations, supervision and
assessment mechanism, allocating special maintenance funds and so on, so as to ensure the effective operation of
the governing facilities in a full round, delivering its best to protect and improve the ecological environment
around the enterprise.
2. Environment impact assessment and other required environment protection administrative license for
construction projects
The Company and its subsidiaries earnestly implement the Environmental Protection Law, the Environmental
Impact Assessment Law and the Regulations on Environmental Protection Management of Construction Projects,
consciously abide by environmental protection laws and regulations, industry requirements and government
regulations. For new, renovated and expanded projects, the Company and its subsidiaries adhere to the project
environmental impact assessment and "three simultaneous" system, fully implement environmental protection
measures, act well in environment protection management in respect of project planning, design, construction and
operation, make full use of advanced crafts and technological means to reduce environmental pollution.
Environmental impact assessment is carried out synchronously while making the feasibility study for a
construction project. Third-party professional parties are engaged to analyze the industrial policy, land use
planning, environmental impact and the feasibility of environmental protection measures of the project.
Construction will be started only after approved by the competent environmental protection authorities. During
the construction, environmental protection requirements are earnestly implemented, environmental protection
facilities are built synchronously, environmental protection acceptance of the project is arranged in time upon
completion of the project to ensure that the project meets the acceptance criteria and could be put into official
operation with all the environmental impact assessment requirements met. During the operation period, the
Company conducts pollution prevention to ensure the normal operation of environmental protection facilities in
strict compliance with the relevant environmental impact assessment documents and the reply requirements of the
competent environmental protection authorities.
3. Emergency plan for environmental emergencies
The Company and its subsidiaries have set up related emergency plans for environmental emergencies. The
Company and its subsidiaries have determined classified warning based on the different extent and severity of
96
CHANGHONG MEILING CO.,LTD. Annual Report 2021
environmental impacts that may be caused by the material environmental factors, defined the responsibilities for
emergency response, regulated emergency handling procedures, established special team to handle emergencies
and organized regular rehearsal and appraisal of relevant emergency plans, so as to ensure the effectiveness of
these plans, improve their capability of emergency handling and take precautions against contingent emergencies.
4. Independent plan to monitor environment
The Company and its subsidiaries have established regular monitoring plan for environmental pollutants, set up
special funds for pollutants monitoring, and engaged third-party authoritative to regularly monitor the operation of
major pollution-production links and environmental protection treatment facilities in connection with the major
pollutants produced by the Company and its subsidiaries, to make sure that the Company and its subsidiaries
could achieve emission standards in a full round.
5. Administrative penalties for environmental issues during the reporting period
The Company and its subsidiaries strictly abide by the relevant national and regional environmental protection
laws and regulations, established and improved the internal environmental protection management system by
relying on the ISO14001 system, updated the adaptable laws and regulations and relevant industry requirements in
a timely manner, and actively performed corporate social responsibilities, which laid a solid foundation for the
company's compliance operations. During the reporting period, the Company and its subsidiaries were not subject
to administrative penalties due to environmental issues.
6. Other environment information that should be disclosed
According to the Environmental Information Disclosure Measures of Enterprises and Institutions, in line with the
principle of mandatory disclosure and voluntary disclosure combined, the Company and its subsidiaries have
realized the disclosure of information relating to environmental impact assessment, project acceptance, pollutants
production and discharge, solid waste management, important environmental factors, environmental objectives
and performance of construction projects.
7.Measures taken to reduce carbon emissions and their effectiveness during the reporting period
□ Applicable √ Not applicable
Combining the characteristics and special requirements of carbon emissions, the company strengthens the energy
management of each production unit, improves the internal energy management and energy efficiency index
assessment and energy consumption evaluation system, continues to carry out energy measurement and evaluation,
follows the principles of system management, and establishes a complete and effective management system.
During the reporting period, the company vigorously promoted and applied the industry's advanced energy-saving
equipment and technologies, and carried out energy-saving technical transformation; carried out energy-saving
transformation for high-consumption and low-efficiency air compressors, upgrading and transformation for air
compressor joint control systems, energy-saving transformation for steam pipelines, research and application for
infrared heating technology, application research for air energy units, application research for air compressor
waste heat recovery and utilization, and replacement of high-efficiency and energy-saving heating tiles and other
energy-saving renovation measures, improved automation and intelligence, and combined energy management
97
CHANGHONG MEILING CO.,LTD. Annual Report 2021
with informatization construction, improved the production and manufacturing system through internet technology,
realized lean production management, improved production efficiency, and reduced energy waste and CO2
emissions.
8. Other environment related information
In order to further realize the scientific and systematic environmental protection work of the Company and its
subsidiaries, the Company and its subsidiaries have established an environmental management system in
accordance with ISO14001 standards, set up an environmental protection organization, acquired environmental
protection resources, regularly identified, updated and appraised environmental factors, compliance obligations,
environmental risks and opportunities, and regularly determined environmental objectives and management
programs. Through the implementation of management programs and continuous normal improvement, the
environmental performance of the Company and its subsidiaries has been continuously improved. Through regular
internal audit and management review, as well as the verification and examination of the third parties, the
environmental management system of the Company and its subsidiaries has been effectively controlled and fully
meets the system management standards and relevant regulations.
II. Social responsibility
The company adheres to the core values of "dedication, responsibility, co-creation and sharing", and achieves the
purpose of "staff satisfaction, customer satisfaction, and shareholder satisfaction" through standardized operation
and scientific management. While achieving benign development, the company has also actively fulfilled its
social responsibilities through various forms and channels.
1. Protection of the rights and interests of shareholders and creditors
The company strictly follows the provisions and requirements formulated by the Articles of Association and the
Rules of Procedure for the General Meeting of Shareholders, regulates the convening, holding and voting
procedures of the general meeting of shareholders, equally treats all shareholders, especially small and medium
shareholders equally, and ensures that all shareholders enjoy equal status and fully exercise their own rights.
Under the premise of strictly implementing the Administrative Measures for Information Disclosure of Listed
Companies, the company actively communicates and exchanges information with investors on the company's
operations and management, financial status, etc. through annual performance briefings, investor telephone
hotline, e-mails, and the investor relations interactive platform of the Shenzhen Stock Exchange, and discloses
information to all investors in a truthful, accurate, complete, concise and clear, and easy-to-understand manner;
the company attaches great importance to the shareholder return mechanism. During the reporting period, the
company combined its own operating conditions and business models, and formulated the "Shareholder Return
Plan for the Next Three Years (2021-2023) of Changhong Meiling Co., Ltd.". In addition, during the reporting
period, in order to effectively protect the rights and interests of all shareholders and enhance the investment
confidence of public investors in the company, the company's board meeting and shareholders' meeting reviewed
98
CHANGHONG MEILING CO.,LTD. Annual Report 2021
and approved the continued implementation of the B-share repurchase plan, which effectively improved
shareholder satisfaction.
2. Protection of the rights and interests of employees
In accordance with relevant laws, regulations and policies, and in light of its own actual situation, the company
has established a relatively complete employment management system, including labor contract system, salary
and performance appraisal system, welfare management system, training management system, employee vacation
management system, etc.. The company pays attention to the vital interests of employees, maximizes the
protection of the legitimate rights and interests of employees and retirees, and strives to form a benefit sharing
mechanism for both company and employees, and establishes a harmonious labor relationship. At the same time,
the company shapes corporate culture and improves employee satisfaction by providing various vacations,
allowances, condolences, and organizing colorful leisure activities, sports and cultural festivals, carnivals, etc.
3. Protection of the rights and interests of suppliers, customers and consumers
The company has established a relatively complete procurement management system, optimized and revised
system documents in a timely manner, unified information system tools, strictly controlled every link of the
procurement business, cultivated core and strategic suppliers, and established a high-end supply chain cultivation
plan for component suppliers of high-end products, so as to form a synergy, cooperation and win-win situation
between the company and its suppliers.
The company attaches great importance to product quality and customer needs, and has a relatively advanced and
complete R&D and quality assurance system which has passed ISO9001, ISO14001, ISO45001 management
system certifications, so its products are guaranteed by high quality and reliable performance. At the same time,
for different types of customers, the company implements classification evaluation and system management,
timely answers or feed backs and deals with the questions raised by customers, continuously improves quality
services, and enhances brand image.
4. Social welfare
Over the years, the company has been actively participating in social welfare undertakings and various social
welfare activities. The company strictly implements the internal environmental operation control procedures and a
series management systems related to environment, safety and product quality, such as Energy Management
Regulations, Safety Production Responsibility System, Safety Training Management System, and "Process
Quality Control Points" Management Measures for Refrigerator and Freezer Products, ensures that the company's
production and service activities comply with relevant national legal requirements; and actively carries out actions
such as helping employees with serious illnesses and advocating voluntary donations by employees. In addition,
after the outbreak of the COVID-19 pandemic, the company has actively participated in various social welfare
99
CHANGHONG MEILING CO.,LTD. Annual Report 2021
activities and assumed social responsibilities , donated multiple batches of medical supplies to contribute to the
anti-pandemic work.
III. Consolidate and expand the achievements of poverty alleviation and rural revitalization
The company actively undertakes corporate social responsibility, and strives to contribute to local poverty
alleviation and rural revitalization while achieving its own sound operation and development. At the beginning of
2022, the company has successively carried out the "Rural Revitalization, Meiling Goes First - Base Agricultural
Products Fair", and the love assistance activities for Tongxin Primary School in Tiantangzhai Town, Jinzhai
County, positively responding to Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era,
and assuming the social responsibility of enterprises.
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CHANGHONG MEILING CO.,LTD. Annual Report 2021
Section VI. Important Events
I. Implementation of commitment
(i) Commitments that the actual controller, shareholders, related party, the buyer and the company have fulfilled during the reporting period and have not
yet fulfilled by the end of reporting period
√ Applicable □ Not applicable
Commitment Implement
Commitment Type/content Date Term
party ation
1. The acquirer shall not engage in refrigerator business or activity which Strictly
competes or will compete with business of Meiling Electrical Appliances, or Valid for long term implemente
that which has interest conflict with Meiling Electrical Appliances. d
About committed
2. The acquirer promises to apply shareholders’ right on a legal and reasonable Strictly
Sichuan and promised in
Commitments manner and shall not take any action to limit or affect the normal operation of Valid for long term implemente
Changhong order to prevent
made in Meiling Electric. d
Electric Co., horizontal
acquisition 3. For any opportunity to engage in competing business, the acquirer will 2007-6-12
Ltd.(hereinafter, competition in the
report or equity advise Meiling Electric in written for engaging such business or not. If Meiling
the “Sichuan Acquisition
change report Electrical Appliances gives no clear written reply as to whether engaging the Strictly
Changhong”) Report of Hefei
competing business or not within 20 days after receipt of the aforesaid letter, it Valid for long term implemente
Meiling Co., Ltd.
shall be deemed that it will not engage in such business. The acquirer will only d
engage in non-competing business provided that Meiling Electric confirms not
to or is deemed to not engage in such non-competing business.
101
CHANGHONG MEILING CO.,LTD. Annual Report 2021
1. It will not engage in such business or activity that competes with or has
interest conflict with that of Meiling Electric except for the action taken for
sake of Meiling Electric as required by Meiling Electrical Appliances.
Commitment 2. The Company promises to apply shareholders’ right on a legal and
regarding to reasonable manner and shall not take any action to limit or affect the normal
Strictly
reducing and operation of Meiling Electric
2010-6-24 Valid for long term implemente
preventing 3. In case that Meiling Electric expects, on the basis of its existing business, to
d
competition with expand its operation scope into the business which the Company has already
Meiling Electric operated, the Company agrees to grant priority acquisition right to Meiling
Electric regarding such business if the same conditions are met, provided that
the Company is still the controlling shareholder or actual controller of Meiling
Electric
1. Measures will be adopted to prevent continued related transaction with
Sichuan
Commitment Meiling Electric: as to the related transaction that can not be prevented, it will
Changhong
made during the Commitment sign related transaction agreement with Meiling Electric under the market
non-public offer regarding to principles of “equally paid and mutual benefit”, and fairly determined the
of 2010 reducing and transaction price according to the market prevailing standards. Strictly
standardizing 2. Perform the necessary obligations to make related directors and related 2010-6-24 Valid for long term implemente
related transaction shareholder abstain from voting according to relevant regulation, and observe d
with Meiling legal procedure for approving related transaction and information disclosure
Electric obligations.
3. Promise not to hurt legal interests of Meiling Electric and other shareholders
through related transaction.
Strictly
Commit to authorized Changhong Air-conditioner and Zhongshan Changhong use “Changhong”
2010-11-6 Valid for long term implemente
trademark and relevant patents for free.
d
1. Commit to disclose periodic reports on a truthful, accurate, complete, fair and prompt manner, to Strictly
The Company disclose all the information that have important influences over investors, to accept supervision 2011-1-7 Valid for long term implemente
under the CSRC and Shenzhen Stock Exchange. d
102
CHANGHONG MEILING CO.,LTD. Annual Report 2021
2. Commit to make public clarification in respect of such information that is released from any
public media and may result in misleading influences on stock price once the Company is aware of
such information.
3. The directors, supervisors, senior management and core technicians of the Company will accept
opinions and criticism from the social public, and they will not trade the Company’s securities,
directly or indirectly, with any inside information and other illegal methods. The Company
promises that the documents submitted to Shenzhen Stock Exchange exist no false statement or
material omission, and no relevant information will be disclosed during the application for listing
without prior content from Shenzhen Stock Exchange.
1. Since the property transfer didn’t involve the buildings and land currently used by Changhong Strictly
Air-conditioner, Sichuan Changhong commits, upon the completion of equity transfer, to continue Valid for long term implemente
to lease such assets to Changhong Air-conditioner at market price. d
Commitment
2. After completion of this property transfer, Sichuan Changhong commits to manage to prevent
made in transfer
Sichuan new related transaction with Meiling Electric. For those which can not be prevented, Sichuan
of air 2009-12-10
Changhong Changhong commits to determine the transaction price based on market accepted methods, so as to Strictly
conditioning
ensure fairness of related transaction and protection of the interest of Meiling Electric Valid for long term implemente
assets property
3. Sichuan Changhong commits that it will not engage in air conditioning and refrigerator business d
or activity which competes or will compete with business of Meiling Electric, or that which has
interest conflict with Meiling Electric
Sichuan 1. Based on market conditions and as allowed by laws and rules, multiple measures were adopted
Changhong adequately to increase shareholding of Meiling Electric, so as to demonstrate its firm confidence on
Commitments Electric Co., the PRC economy and Meiling Electric with its actual actions, maintain sound development of
Strictly
of not to Ltd.and persons capital market and promote recovery of healthy market
2015-7-9 Valid for long term implemente
reducing the acting in concert
d
shares CHANGHONG 2. Continued to support operation and development of listed company as always and promoted the
(HK) TRADING achievement of Meiling Electric. It is committed to bringing steady and real return to investors.
LIMITED
Commitment Directors and Commitment on 1. I hereby undertake not to deliver interests to other entities or individuals Till the completion
Implementi
made during the senior executives compensation of without consideration or at unfair conditions, nor to prejudice the Company’s 2016-2-23 of projects invested
ng
non-public offer of the Company immediate interests by other means. with the proceeds
103
CHANGHONG MEILING CO.,LTD. Annual Report 2021
in 2016 dilution of return from this
2. I hereby undertake to restrain my role related consumption behaviors.
arising from non-public issuance
non-public 3. I hereby undertake not to conduct any investment and consumption which is of shares
issuance of shares not related to performance of duties with utilization of any company assets.
4. I hereby undertake that the remuneration system determined by the board of
directors or the remuneration and examination committee be linked to
implementation of the compensation of return measures.
5. In case that the Company adopts share based incentive plan in future, I
hereby undertake that the exercise conditions of the incentive plan to be
announced by the Company be linked to implementation of the compensation
of return measures.
6. For the period from the date of this commitment to the date of completion of
this non-public issuance of shares, if the CSRC makes other new regulatory
requirements on compensation of return measures and the commitment thereof,
and in case that the above commitments cannot satisfy these new requirements
from the CSRC, I hereby undertake to issue supplementary commitment in
compliance with the latest CSRC requirements.
7. As one of the principals responsible for compensation of return measures, I,
in case of break of the above commitments or refuse to perform the above
commitments, agree to receive relevant punishment or to adopt relevant
administration measures according to the systems, rules and regulations of the
CSRC and Shenzhen Stock Exchange.
1. Promise to truly, accurately, completely, fairly and timely publish periodic reports, disclose all
information that has significant impacts on the investors, and accept the supervision and
management of China Securities Regulatory Commission and the Shenzhen Stock Exchange.
Strictly
2. Make commitments that the Company will publicly clarify in time after knowing any
The Company 2016-10-12 Valid for long term implemente
information on any public communications media that may cause misleading influence on the
d
stock price
3. The Company’s directors, supervisors and senior executives will listen carefully to the opinions
and criticisms of the public and never use any acquired inside information and other improper
104
CHANGHONG MEILING CO.,LTD. Annual Report 2021
means to directly or indirectly engage in the trading activities of the Company's stock.
Perform the commitment promptly or not √ Yes □ No
If the commitment is overdue and has not
been fulfilled, the specific reasons for
Not applicable
incomplete performance and the work plan
for next step shall be explained in detail
(ii) Concerning assets or project of the Company, which has profit forecast, and reporting period still in forecasting period, explain reasons of reaching the
original profit forecast
□ Applicable √ Not applicable
II. Non-operational fund occupation from controlling shareholders and its related party
□ Applicable √ Not applicable
No non-operational fund occupation from controlling shareholders and its related party in period.
Disclosure date for specific approval opinion on fund occupation from CPA: 31 March 2022
Disclosure index for specific approval opinion on fund occupation from CPA: Juchao website: Juchao Website (www.cninfo.com.cn)-- Specific Explanation on Non-operational fund occupation
and its related capital transactions for year of 2021 of Changhong Meiling Co., Ltd.
III. External guarantee out of the regulations
□ Applicable √ Not applicable
No external guarantee out of the regulations occurred in the period.
IV. Statement on the latest “modified audit report” by BOD
□ Applicable √ Not applicable
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CHANGHONG MEILING CO.,LTD. Annual Report 2021
V. Explanation from Board of Directors, Supervisory Committee and Independent Directors (if applicable)
for “Qualified Opinion” that issued by CPA
□ Applicable √ Not applicable
VI. Explanation of the changes in accounting polices, accounting estimates or correction of significant
accounting errors compared with the financial report of the previous year
√ Applicable □ Not applicable
Found more details in 38. Change of major accounting policy and estimation under IV. Major accounting policy and estimation
carried in the Section XII. Financial Report
VII. Compare with last year’s financial report; explain changes in consolidation statement’s scope
√ Applicable □ Not applicable
In the reporting period, the consolidated financial statements of the Company cover 27 subsidiaries, including Sichuan Changhong
Air-conditioner Co., Ltd, Zhongshan Changhong Electric Co., Ltd. And Zhongke Meiling Cryogenic Technology Co., Ltd. etc.
Compared with the previous year, during the reporting period one enterprise is included in the consolidate scope, that is Anhui
Ling'an Medical Equipment Co., Ltd. The subsidiaries Tai yuan Meiling Electrical Marketing Co., Ltd., Tianjin Meiling Electrical
Marketing Co., Ltd., and Guangzhou Meiling Electrical Marketing Co., Ltd. were decreased due to the merger.
More details can be seen in the report “VII. Changes in the scope of the merger” and “VIII. Equity in other entities” of “Section X
Financial Report”
VIII. Appointment and non-reappointment (dismissal) of CPA
Name of domestic accounting firm Shine Wing Certified Public Accountants (LLP)
Remuneration for domestic accounting firm (In 10 thousand yuan) 131
Continuous life of auditing service for domestic accounting firm 13-year
Name of domestic CPA Li Xifu, Wang Xiaodong
Continuous life of auditing service for domestic CPA Li Xifu (5 years), Wang Xiaodong (2 year)
Name of foreign accounting firm (if applicable) N/A
Remuneration for foreign accounting firm (10 thousand yuan) (if
N/A
applicable)
Continuous life of auditing service for foreign accounting firm (if
N/A
applicable)
Name of foreign CPA (if applicable) N/A
Continuous life of auditing service for foreign CPA (if applicable) -
(i) Accounting firm appointed
(ii) Re-appointed accounting firms in this period
□Yes √ No
106
CHANGHONG MEILING CO.,LTD. Annual Report 2021
(iii) Appointment of internal control auditing accounting firm, financial consultant or sponsor
√ Applicable □ Not applicable
In reporting period, Shine Wing Certified Public Accountants (LLP) was appointed as audit institute of internal
control for the Company, auditing charge for internal control amounting as 250,000 yuan.
IX. Particular about delisting after annual report disclosed
□ Applicable √ Not applicable
X. Bankruptcy reorganization
□ Applicable √ Not applicable
XI. Material lawsuits and arbitration of the Company
(i) Major Litigation and Arbitration Matters
□ Applicable √ Not applicable
During the reporting period, the Company had no major litigation and arbitration matters.
(ii) Other litigation matters
To maintain the independence and integrity of "Meiling" trademark and trade name, the Company carried out
serials of lawsuits, attribution and administration suits with “Meiling” trademark and corporate name concerned,
Up to now, in view of the infringement to the Company’s "Meiling" trademark and trade name, false propaganda
and unfair competition in the market, the Company has carried out many ways including administrative reports,
criminal investigation and civil litigation to fight against infringement and counterfeiting behavior in the whole
country in order to stopped the infringing behavior.
XII. Penalty and rectification
√ Applicable □ Not applicable
107
CHANGHONG MEILING CO.,LTD. Annual Report 2021
Investig
ation Disclosure
Name Type Causes Conclusions (if any) Disclosure index
penalty date
type
The YC-395EL (1) type equipment produced Zhongke Meiling
Investig
on 24 Oct. 2019 and sold on 13 Nov. 2019 by was ordered to
ated by Found more on
ZhongkeMeiling Zhongke Meiling did not file changes with the immediately correct
compet (Notice No.:
Cryogenic Other original registration department; the the violations and 2021-7-16
Technology Co., ent 2021-056) released
Ltd. YC-395EL (2) type equipment did not apply was given a
authorit on Juchao Website
for registration changes with the original forfeiture of 456,500
ies
registration department yuan in total
Correction description:
√ Applicable □ Not applicable
After accepting the on-site inspection by the Anhui Medical Products Administration, Zhongke Meiling has fully
realized the problem of not timely filing and registering changes in accordance with the relevant provisions of the
Regulations for the Supervision and Administration of Medical Devices, and rectified the corresponding problems
as soon as possible. Zhongke Meiling recalled the products involved in a timely manner in accordance with the
Medical Device Recall Management Measures, and immediately sealed samples of the recalled products and sent
them to a third-party authority for performance and safety testing. The inspection showed that the products met
the requirements. Up to now, Zhongke Meiling has completed the registration change of the above products.
At the same time, the company and its subsidiaries will profoundly summarize the lessons of this administrative
penalty, strictly abide by relevant laws and regulations, further improve the standardized operation level, and
prevent such incidents from happening again.
XIII. Integrity of the company and its controlling shareholders and actual controllers
□Applicable √ Not applicable
During the reporting period, the Company and the controlling shareholders and the actual controllers have had
good reputation, and there is no large amount due unliquidated debt sentenced by the court.
XIV. Major related party transaction
(i) Related party transaction with routine operation concerned
√ Applicable □ Not applicable
108
CHANGHONG MEILING CO.,LTD. Annual Report 2021
Whethe
Proport r over Availa
Related Clearing
Related ion in Trading limit the ble
Type of Content of Pricing transaction form for
Seri Relationshi transaction similar approved (in approve simila
Related party related related principl price (in 10 related Date of disclosure Index of disclosure
al p amount (in 10 transact 10 thousand d r
transaction transaction e thousand transactio
thousand Yuan) ions Yuan) limited marke
Yuan) n
(%) or not t price
(Y/N)
R-three-terminal
voltage regulator, Juchao
Sichuan Controlling
integrated circuits, Website(www.cninfo.com.
Spot 2020-12-12;
Changhong shareholder Commodity cn) Notice No.: 2020-097,
R-insulated gate Marketin exchange, 2020-12-30; 2021-7-13;
1 50,571.94 50,571.94 3.60% 60,000.00 N - 2020-099, 2020-107,
Electric Co., and ultimate purchased g price Bank 2021-7-29 and
bipolar transistors, 2021-050, 2021-053,
acceptance 2021-12-21
Ltd. controller 2021-058, 2021-104 and
steel plates, 2021-106
plastic parts etc.
Other
enterprise Juchao
control Website(www.cninfo.com.
Changhong 2020-12-12;
under the Compressor, Door Marketin cn) Notice No.: 2020-097,
Huayi Commodity Bank 2020-12-30; 2021-7-13;
2 same 41,837.98 41,837.98 2.98% 63,150.00 N - 2020-099, 2020-107,
Compressor purchased seal g price acceptance 2021-7-29 and
controlling 2021-050, 2021-053,
Co., Ltd. 2021-12-21
shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
Sichuan control Website(www.cninfo.com.
Components, Spot 2020-12-12;
Changhong under the cn) Notice No.: 2020-097,
Commodity plastic parts and Marketin exchange, 2020-12-30; 2021-7-13;
3 Mold Plastic same 72,213.77 72,217.32 5.14% 120,000.00 N - 2020-099, 2020-107,
purchased lining accessories g price Bank 2021-7-29 and
Tech. Co., controlling 2021-050, 2021-053,
etc. acceptance 2021-12-21
Ltd. shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
Sichuan Other Base plate Spot 2020-12-12; Juchao
Commodity Marketin
4 Changhong enterprise assembly, black 36,519.86 36,519.86 2.60% 60,000.00 N exchange, - 2020-12-30; 2021-7-13; Website(www.cninfo.com.
purchased g price
Jijia Fine Co., control plate, bracket etc. Bank 2021-7-29 and cn) Notice No.: 2020-097,
109
CHANGHONG MEILING CO.,LTD. Annual Report 2021
Ltd. under the acceptance 2021-12-21 2020-099, 2020-107,
same 2021-050, 2021-053,
controlling 2021-058, 2021-104 and
shareholder 2021-106
and ultimate
controller
Other
enterprise Juchao
Sichuan control Website(www.cninfo.com.
Spot 2020-12-12;
Changhong under the Packing boxes, cn) Notice No.: 2020-097,
Commodity Marketin exchange, 2020-12-30; 2021-7-13;
5 Package same foam, fixed 10,505.94 10,505.94 0.75% 18,000.00 N - 2020-099, 2020-107,
purchased g price Bank 2021-7-29 and
Printing Co., controlling support block etc. 2021-050, 2021-053,
acceptance 2021-12-21
Ltd. shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
Sichuan
control Website(www.cninfo.com.
Changhong Printed board 2020-12-12;
under the cn) Notice No.: 2020-097,
Precision Commodity machine insertion Marketin Bank 2020-12-30; 2021-7-13;
6 same 1,689.38 1,689.38 0.12% 5,000.00 N - 2020-099, 2020-107,
Electronics purchased machine paste g price acceptance 2021-7-29 and
controlling 2021-050, 2021-053,
Tech. Co., assembly 2021-12-21
shareholder 2021-058, 2021-104 and
Ltd.
and ultimate 2021-106
controller
Other
enterprise Juchao
Sichuan control Website(www.cninfo.com.
2020-12-12;
Changhong under the cn) Notice No.: 2020-097,
Commodity Marketin Cash 2020-12-30; 2021-7-13;
7 International same foodstuff 2.00 2.00 0.00% 8,000.00 N - 2020-099, 2020-107,
purchased g price settlement 2021-7-29 and
Hotel Co., controlling 2021-050, 2021-053,
2021-12-21
Ltd. shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
control Website(www.cninfo.com.
2020-12-12;
081 Electronic under the cn) Notice No.: 2020-097,
Commodity Power Marketin Bank 2020-12-30; 2021-7-13;
8 Group Co., same 4.95 4.95 0.00% 13,000.00 N - 2020-099, 2020-107,
purchased transformers g price acceptance 2021-7-29 and
Ltd. controlling 2021-050, 2021-053,
2021-12-21
shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
9 Guangdong Other Commodity Foam and carton Marketin 459.10 459.10 0.03% 13,000.00 N Spot - 2020-12-12; Juchao
110
CHANGHONG MEILING CO.,LTD. Annual Report 2021
Changhong enterprise purchased g price exchange, 2020-12-30; 2021-7-13; Website(www.cninfo.com.
Electronics control Bank 2021-7-29 and cn) Notice No.: 2020-097,
Co., Ltd. under the acceptance 2021-12-21 2020-099, 2020-107,
same 2021-050, 2021-053,
controlling 2021-058, 2021-104 and
shareholder 2021-106
and ultimate
controller
Other
enterprise Juchao
Sichuan
control Website(www.cninfo.com.
Changhong 2020-12-12;
under the cn) Notice No.: 2020-097,
Intelligent Commodity Marketin Cash 2020-12-30; 2021-7-13;
10 same Circuit boards 2.86 2.86 0.00% 8,000.00 N - 2020-099, 2020-107,
Manufacturing purchased g price settlement 2021-7-29 and
controlling 2021-050, 2021-053,
Technology 2021-12-21
shareholder 2021-058, 2021-104 and
Co., Ltd.
and ultimate 2021-106
controller
Other
enterprise Juchao
control Website(www.cninfo.com.
Sichuan 2020-12-12;
under the cn) Notice No.: 2020-097,
Hongwei Commodity Marketin Cash 2020-12-30; 2021-7-13;
11 same RTU collectors 0.32 0.32 0.00% 13,000.00 N - 2020-099, 2020-107,
Technology purchased g price settlement 2021-7-29 and
controlling 2021-050, 2021-053,
Co., Ltd. 2021-12-21
shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
control Website(www.cninfo.com.
Hefei 2020-12-12;
under the Inverter integrated cn) Notice No.: 2020-097,
Changhong Commodity Marketin Bank 2020-12-30; 2021-7-13;
12 same board, control 942.42 942.42 0.07% 13,000.00 N - 2020-099, 2020-107,
Industrial Co., purchased g price acceptance 2021-7-29 and
controlling board 2021-050, 2021-053,
Ltd. 2021-12-21
shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
Other Juchao
Sichuan enterprise Website(www.cninfo.com.
control 2020-12-12;
Changhong cn) Notice No.: 2020-097,
under the Commodity Marketin Cash 2020-12-30; 2021-7-13;
13 New Energy batteries 2.70 2.70 0.00% 8,000.00 N - 2020-099, 2020-107,
same purchased g price settlement 2021-7-29 and
Technology 2021-050, 2021-053,
controlling 2021-12-21
Co., Ltd. 2021-058, 2021-104 and
shareholder 2021-106
and ultimate
111
CHANGHONG MEILING CO.,LTD. Annual Report 2021
controller
Other
enterprise Juchao
Sichuan control Website(www.cninfo.com.
2020-12-12;
Zhiyijia under the cn) Notice No.: 2020-097,
Commodity Air conditioner, Marketin Cash 2020-12-30; 2021-7-13;
14 Network same 1,218.16 1,218.16 0.09% 13,000.00 N - 2020-099, 2020-107,
purchased LCD TV g price settlement 2021-7-29 and
Technology controlling 2021-050, 2021-053,
2021-12-21
Co., Ltd. shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
Changhong control Website(www.cninfo.com.
2020-12-12;
International under the cn) Notice No.: 2020-097,
Commodity Marketin Cash 2020-12-30; 2021-7-13;
15 Holdings same Television 1,017.63 1,017.63 0.07% 10,000.00 N - 2020-099, 2020-107,
purchased g price settlement 2021-7-29 and
(Hong Kong) controlling 2021-050, 2021-053,
2021-12-21
Co., Ltd. shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
Sichuan control Website(www.cninfo.com.
Speech Spot 2020-12-12;
Changhong under the cn) Notice No.: 2020-097,
Commodity components for Marketin exchange, 2020-12-30; 2021-7-13;
16 Electronic same 2,376.25 2,376.25 0.17% 6,000.00 N - 2020-099, 2020-107,
purchased R&D, electronic g price Bank 2021-7-29 and
Products Co., controlling 2021-050, 2021-053,
components acceptance 2021-12-21
Ltd. shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
control Website(www.cninfo.com.
Sichuan 2020-12-12;
under the cn) Notice No.: 2020-097,
Jiahong Commodity Marketin Cash 2020-12-30; 2021-7-13;
17 same foodstuff 0.60 0.60 0.00% 8,000.00 N - 2020-099, 2020-107,
Industrial Co., purchased g price settlement 2021-7-29 and
controlling 2021-050, 2021-053,
Ltd. 2021-12-21
shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
Other Juchao
Sichuan Ailian enterprise Internet access Spot 2020-12-12; Website(www.cninfo.com.
Science & control Commodity modules, Marketin exchange, 2020-12-30; 2021-7-13; cn) Notice No.: 2020-097,
18 2,519.71 2,519.71 0.18% 6,000.00 N -
Technology under the purchased electronic g price Bank 2021-7-29 and 2020-099, 2020-107,
Co., Ltd. same components etc. acceptance 2021-12-21 2021-050, 2021-053,
controlling 2021-058, 2021-104 and
112
CHANGHONG MEILING CO.,LTD. Annual Report 2021
shareholder 2021-106
and ultimate
controller
Other
enterprise Juchao
Sichuan control Website(www.cninfo.com.
Spot 2020-12-12;
Aichuang under the cn) Notice No.: 2020-097,
Commodity Inverter integrated Marketin exchange, 2020-12-30; 2021-7-13;
19 Science & same 10,843.83 10,843.83 0.77% 15,000.00 N - 2020-099, 2020-107,
purchased board, R-IC etc. g price Bank 2021-7-29 and
Technology controlling 2021-050, 2021-053,
acceptance 2021-12-21
Co., Ltd. shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
Hunan control Website(www.cninfo.com.
Spot 2020-12-12;
Grand-Pro under the cn) Notice No.: 2020-097,
Commodity Floor mopping Marketin exchange, 2020-12-30; 2021-7-13;
20 Intelligent same 152.35 152.35 0.01% 1,500.00 N - 2020-099, 2020-107,
purchased robot g price Bank 2021-7-29 and
Tech. controlling 2021-050, 2021-053,
acceptance 2021-12-21
Company shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
Sichuan control Website(www.cninfo.com.
2020-12-12;
Service Exp. under the cn) Notice No.: 2020-097,
Commodity Air conditioner Marketin Cash 2020-12-30; 2021-7-13;
21 Appliance same 5.00 5.00 0.00% 13,000.00 N - 2020-099, 2020-107,
purchased spare parts g price settlement 2021-7-29 and
Service Chain controlling 2021-050, 2021-053,
2021-12-21
Co., Ltd. shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
Juchao
Sichuan Shuttle
Website(www.cninfo.com.
Changhong Controlling transportation fee, 2020-12-12;
cn) Notice No.: 2020-097,
Electronics shareholder Accept labor employee medical Marketin Cash 2020-12-30; 2021-7-13;
22 168.13 168.13 0.12% 8,000.00 N - 2020-099, 2020-107,
Holding and ultimate service examination fees g price settlement 2021-7-29 and
2021-050, 2021-053,
Group Co., controller and training fees 2021-12-21
2021-058, 2021-104 and
Ltd. etc.
2021-106
Training fees, Juchao
Sichuan Controlling 2020-12-12; Website(www.cninfo.com.
technical service
Changhong shareholder Accept labor Marketin Cash 2020-12-30; 2021-7-13; cn) Notice No.: 2020-097,
23 fees, inspection 574.57 574.57 0.40% 5,600.00 N -
Electric Co., and ultimate service g price settlement 2021-7-29 and 2020-099, 2020-107,
and certification
Ltd. controller 2021-12-21 2021-050, 2021-053,
fees etc.
2021-058, 2021-104 and
113
CHANGHONG MEILING CO.,LTD. Annual Report 2021
2021-106
Other
enterprise Juchao
Transportation
Sichuan control Website(www.cninfo.com.
costs, storage and 2020-12-12;
Changhong under the cn) Notice No.: 2020-097,
Accept labor handling charges, Marketin Cash 2020-12-30; 2021-7-13;
24 Minsheng same 58,526.38 58,526.38 41.06% 60,000.00 N - 2020-099, 2020-107,
service freight and g price settlement 2021-7-29 and
Logistics Co., controlling 2021-050, 2021-053,
miscellaneous 2021-12-21
Ltd. shareholder 2021-058, 2021-104 and
charges etc.
and ultimate 2021-106
controller
Other
enterprise Juchao
Sichuan control Website(www.cninfo.com.
2020-12-12;
Changhong under the cn) Notice No.: 2020-097,
Accept labor Marketin Cash 2020-12-30; 2021-7-13;
25 Mold Plastic same Mold changes fees 12.72 12.72 0.01% 5,600.00 N - 2020-099, 2020-107,
service g price settlement 2021-7-29 and
Tech. Co., controlling 2021-050, 2021-053,
2021-12-21
Ltd. shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
Sichuan control Website(www.cninfo.com.
Three packages, 2020-12-12;
Service Exp. under the cn) Notice No.: 2020-097,
Accept labor equipment Marketin Cash 2020-12-30; 2021-7-13;
26 Appliance same 25,071.81 25,071.81 17.59% 35,000.00 N - 2020-099, 2020-107,
service repair,miscellaneo g price settlement 2021-7-29 and
Service Chain controlling 2021-050, 2021-053,
us fees etc. 2021-12-21
Co., Ltd. shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
Other Software usage
enterprise Juchao
control fee, service Website(www.cninfo.com.
Sichuan 2020-12-12;
under the supporting fee and Marketin cn) Notice No.: 2020-097,
Hongxin Accept labor Cash 2020-12-30; 2021-7-13;
27 same 1,085.67 1,085.67 0.76% 5,600.00 N - 2020-099, 2020-107,
Software Co., service information g price settlement 2021-7-29 and
controlling 2021-050, 2021-053,
Ltd. 2021-12-21
shareholder service fee 2021-058, 2021-104 and
and ultimate 2021-106
controller
Other Labor insurance Juchao
Guangdong enterprise 2020-12-12; Website(www.cninfo.com.
fee, service
Changhong control Accept labor Marketin Cash 2020-12-30; 2021-7-13; cn) Notice No.: 2020-097,
28 support fee, 112.83 112.83 0.08% 5,600.00 N -
Electronics under the service g price settlement 2021-7-29 and 2020-099, 2020-107,
network service
Co., Ltd. same 2021-12-21 2021-050, 2021-053,
fee etc.
controlling 2021-058, 2021-104 and
114
CHANGHONG MEILING CO.,LTD. Annual Report 2021
shareholder 2021-106
and ultimate
controller
Other
enterprise Juchao
control Website(www.cninfo.com.
Sichuan 2020-12-12;
under the Meals, property cn) Notice No.: 2020-097,
Jiahong Accept labor Marketin Cash 2020-12-30; 2021-7-13;
29 same management fees 389.52 389.52 0.27% 8,000.00 N - 2020-099, 2020-107,
Industrial Co., service g price settlement 2021-7-29 and
controlling etc. 2021-050, 2021-053,
Ltd. 2021-12-21
shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
Sichuan control Website(www.cninfo.com.
2020-12-12;
Changhong under the cn) Notice No.: 2020-097,
Accept labor Meetings fee, Marketin Cash 2020-12-30; 2021-7-13;
30 International same 21.78 21.78 0.02% 8,000.00 N - 2020-099, 2020-107,
service accommodation g price settlement 2021-7-29 and
Hotel Co., controlling 2021-050, 2021-053,
2021-12-21
Ltd. shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
control Website(www.cninfo.com.
2020-12-12;
under the cn) Notice No.: 2020-097,
Orion.PDP.Co. Accept labor Three-packages Marketin Cash 2020-12-30; 2021-7-13;
31 same 12.53 12.53 0.01% 8,000.00 N - 2020-099, 2020-107,
,ltd service fee g price settlement 2021-7-29 and
controlling 2021-050, 2021-053,
2021-12-21
shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
Sichuan control Website(www.cninfo.com.
2020-12-12;
Changhong under the cn) Notice No.: 2020-097,
Accept labor Marketin Cash 2020-12-30; 2021-7-13;
32 International same Travel expenses 2.66 2.66 0.00% 8,000.00 N - 2020-099, 2020-107,
service g price settlement 2021-7-29 and
Travel Service controlling 2021-050, 2021-053,
2021-12-21
Co., Ltd. shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
Sichuan Other Dormitory facility 2020-12-12; Juchao
Changhong enterprise Accept labor and equipment Marketin Cash 2020-12-30; 2021-7-13; Website(www.cninfo.com.
33 70.72 70.72 0.05% 8,000.00 N -
Property control service service fees, g price settlement 2021-7-29 and cn) Notice No.: 2020-097,
Services Co., under the property 2021-12-21 2020-099, 2020-107,
115
CHANGHONG MEILING CO.,LTD. Annual Report 2021
Ltd. same management fees 2021-050, 2021-053,
controlling 2021-058, 2021-104 and
shareholder 2021-106
and ultimate
controller
Other
enterprise Juchao
control Website(www.cninfo.com.
Sichuan 2020-12-12;
under the cn) Notice No.: 2020-097,
Hongwei Accept labor Inspection & Marketin Cash 2020-12-30; 2021-7-13;
34 same 152.19 152.19 0.11% 5,600.00 N - 2020-099, 2020-107,
Technology service certification fees g price settlement 2021-7-29 and
controlling 2021-050, 2021-053,
Co., Ltd. 2021-12-21
shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
Sichuan control Website(www.cninfo.com.
Marketing support 2020-12-12;
Zhiyijia under the cn) Notice No.: 2020-097,
Accept labor fees, advertising Marketin Cash 2020-12-30; 2021-7-13;
35 Network same -46.57 -46.57 -0.03% 5,600.00 N - 2020-099, 2020-107,
service fees and operating g price settlement 2021-7-29 and
Technology controlling 2021-050, 2021-053,
expenses 2021-12-21
Co., Ltd. shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
Sichuan
control Information Website(www.cninfo.com.
Changhong 2020-12-12;
under the consulting fees, cn) Notice No.: 2020-097,
Intelligent Accept labor Marketin Cash 2020-12-30; 2021-7-13;
36 same labor dispatch fee 74.86 74.86 0.05% 8,000.00 N - 2020-099, 2020-107,
Manufacturing service g price settlement 2021-7-29 and
controlling and equipment 2021-050, 2021-053,
Technology 2021-12-21
shareholder repair fees 2021-058, 2021-104 and
Co., Ltd.
and ultimate 2021-106
controller
Other
enterprise Juchao
control Website(www.cninfo.com.
Sichuan 2020-12-12;
under the Equipment repair cn) Notice No.: 2020-097,
Changhong Accept labor Marketin Cash 2020-12-30; 2021-7-13;
37 same fees and labor 1.18 1.18 0.00% 5,600.00 N - 2020-099, 2020-107,
Jijia Fine Co., service g price settlement 2021-7-29 and
controlling dispatch fee 2021-050, 2021-053,
Ltd. 2021-12-21
shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
Sichuan Other Accept labor Environmental Marketin Cash 2020-12-12; Juchao
38 5.66 5.66 0.00% 8,000.00 N -
Changhong enterprise service fees g price settlement 2020-12-30; 2021-7-13; Website(www.cninfo.com.
116
CHANGHONG MEILING CO.,LTD. Annual Report 2021
Gerun control 2021-7-29 and cn) Notice No.: 2020-097,
Environmental under the 2021-12-21 2020-099, 2020-107,
Protection same 2021-050, 2021-053,
Tech. Co., Ltd. controlling 2021-058, 2021-104 and
shareholder 2021-106
and ultimate
controller
Other
enterprise Juchao
Sichuan control Website(www.cninfo.com.
2020-12-12;
Changhong under the cn) Notice No.: 2020-097,
Accept labor Marketin Cash 2020-12-30; 2021-7-13;
39 Electronic same Labor dispatch fee 12.70 12.70 0.01% 5,600.00 N - 2020-099, 2020-107,
service g price settlement 2021-7-29 and
Products Co., controlling 2021-050, 2021-053,
2021-12-21
Ltd. shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
Sichuan control Website(www.cninfo.com.
2020-12-12;
Aichuang under the Labor dispatch cn) Notice No.: 2020-097,
Accept labor Marketin Cash 2020-12-30; 2021-7-13;
40 Science & same fee, R&D test 13.14 13.14 0.01% 8,000.00 N - 2020-099, 2020-107,
service g price settlement 2021-7-29 and
Technology controlling fees 2021-050, 2021-053,
2021-12-21
Co., Ltd. shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
Guangyuan control Website(www.cninfo.com.
2020-12-12;
Changhong under the cn) Notice No.: 2020-097,
Accept labor Marketin Cash 2020-12-30; 2021-7-13;
41 Electronic same Labor dispatch fee 102.31 102.31 0.07% 5,600.00 N - 2020-099, 2020-107,
service g price settlement 2021-7-29 and
Technology controlling 2021-050, 2021-053,
2021-12-21
Co., Ltd. shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
Changhong control Website(www.cninfo.com.
2020-12-12;
International under the cn) Notice No.: 2020-097,
Accept labor Marketing Marketin Cash 2020-12-30; 2021-7-13;
42 Holdings same 598.87 598.87 0.42% 5,600.00 N - 2020-099, 2020-107,
service supports fees g price settlement 2021-7-29 and
(Hong Kong) controlling 2021-050, 2021-053,
2021-12-21
Co., Ltd. shareholder 2021-058, 2021-104 and
and ultimate 2021-106
controller
117
CHANGHONG MEILING CO.,LTD. Annual Report 2021
Other
Technical
enterprise Juchao
development
control Website(www.cninfo.com.
Sichuan service fee, 2020-12-12;
under the cn) Notice No.: 2020-097,
Qiruik Accept labor instrument repair Marketin Ca
