长虹美菱股份有限公司CHANGHONG MEILING CO., LTD.
二〇二二年年度报告Annual Report 2022
I. Important Notice, Table of Contents and Definitions
Board of Directors, Supervisory Committee, all directors, supervisors and senior executives of Changhong MeilingCo., 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, individualand/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. YangJun, person in charge of accounting organ (accountant in charge) hereby confirm that the Financial Report of 2022Annual Report is authentic, accurate and complete.The Company did not have directors, supervisors and senior executives of the Company could not guarantee thereality, accuracy and completion of the whole contents or have objections.All the directors attended the board meeting to deliberating the Report by a combination of on-site andcommunication.Modified audit opinions notes
□ Applicable √ Not applicable
Shine Wing Certified Public Accountants (LLP) issued standard unqualified Auditors’ Report for the Company’sFinancial Report of 2022.Major defects in internal control
□ Applicable √Not applicable
The Company had no major defects in internal control in the reporting period.Risk warning of concerning the forward-looking statements with future planning involved in annual report
√ Applicable □Not applicable
Concerning the forward-looking statements with future planning involved in the Report, they do not constitute asubstantial commitment for investors, investors and the person concerned should maintain adequate risk awareness,furthermore, differences between the plans, forecast and commitments should be comprehended. Investors areadvised 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 thereport “XI. Prospects for the future development of the company” of “Section III. Management Analysis andDiscussion”, investors are advised to read the relevant content.Securities Times, China Securities Journal and Juchao Website (Juchao Website (www.cninfo.com.cn)) are the
media for information disclosure for year of 2023 that appointed by the Company. All public information under thename of the Company disclosed on the above said media and website shall prevail, and investors are advised toexercise caution.Does the Company need to comply with disclosure requirements of the special industry: NoProfit distribution pre-plan or capitalizing of common reserves pre-plan deliberated by the Board in the reportingperiod
√ Applicable □ Not applicable
Whether to increase the share capital with public reserve
□Yes √No
The profit distribution plan for year of 2022, that deliberated and approved by 31st session of the 10th BODwas: take total shares of 1,029,923,715 shares as base dated 31 December 2022, distributed 0.9 Yuan (tax included)bonus in cash for every 10-share hold by all shareholders, no share bonus issued and no capitalizing of commonreserves carried out.Directors, supervisors and senior executives of the Company respectively signed a Written Confirmation Opinionsfor 2022 Annual Report.Supervisory Committee of the Company formed Written Examination Opinions for 2022 Annual Report.
Documents Available for Reference
I.Financial statement carrying the signatures and seals of the Chairman, principal of the accounting works andperson in charge of accounting organ;II. Original 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 designatedby CSRC in the report period;
ContentsI.Important Notice, Table of contents and Definitions 1II. Company Profile & Financial Highlights. 6III. Management Discussion & Analysis 11IV. Corporate Governance 44V. Environmental & Social Responsibility 71VI. Important Events 78VII. Change of share capital and shareholding of Principal Shareholders 141VIII. Situation of the Preferred Shares 150IX. Corporate Bond 151X. Financial Report 152
Definition
| Terms to be defined | Refers to | Definition |
| Company, The Company, Changhong Meiling or Meiling Electric | Refers to | CHANGHONG MEILING CO.,LTD. |
| Sichuan Changhong or controlling shareholder | Refers to | Sichuan Changhong Electric Co., Ltd. |
| Changhong Group | Refers to | Sichuan Changhong Electronics Holding Group Co., Ltd. |
| Hong Kong Changhong | Refers to | CHANGHONG (HK) TRADING LIMITED |
| Meiling Group | Refers to | Hefei Meiling Group Holdings Limited |
| Industry Investment Group | Refers to | Hefei Industry Investment Holding (Group) Co., Ltd. |
| 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 |
| Anhui Securities Bureau | Refers to | China Securities Regulatory Commission, Anhui Province Securities Regulatory Bureau |
| SSE | Refers to | Shenzhen Stock Exchange |
II. Company Profile & Financial Highlights.I.Company Profile
| Short form of the stock | Changhong Meiling, Hongmeiling B | Stock code | 000521, 200521 |
| Short form of the Stock after changed (if applicable) | N/A | ||
| Stock exchange for listing | Shenzhen Stock Exchange | ||
| Name of the Company (in Chinese) | 长虹美菱股份有限公司 | ||
| Short form of the Company (in Chinese) | 长虹美菱 | ||
| Foreign name of the Company (if applicable) | CHANGHONG MEILING CO.,LTD. | ||
| Abbr. of English name of the Company (if applicable) | CHML | ||
| Legal representative | Wu Dinggang | ||
| Registrations add. | No. 2163, Lianhua Road, Economic and Technology Development Zone, Hefei | ||
| Code for registrations add | 230601 | ||
| Historical changes on the registration address | 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 Wuhu Road, Hefei instead of Linquan Road, Hefei City (Meiling Economic Development 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 | ||
| 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 Development Zone, Hefei | No. 2163, Lianhua Road, Economic and Technology Development Zone, Hefei |
| Tel. | 0551-62219021 | 0551-62219021 |
| Fax. | 0551-62219021 | 0551-62219021 |
| lixia@meiling.com | haiyun.pan@meiling.com |
III. Information disclosure and preparation place
| Website of the Stock Exchange where the annual report of the Company disclosed | Shenzhen Stock Exchange www.szse.cn |
| Media and Website where the annual report of the Company disclosed | Securities Times, China Securities Journal and Juchao website: http://www.cninfo.com.cn |
| Preparation place for annual report | Room of secretary of the Board, 2/F , administrative center, Office building of the Company |
IV. Registration changes of the Company
| Organization code | Uniform social credit code:9134000014918555XK |
| Changes of main business since listing (if applicable) | No changes |
| Previous changes for controlling shareholders (if applicable) | 1. In October 1993, after initial listing, controlling shareholder of the Company-- Hefei Meiling Industrial Corp. (renamed as Hefei Meiling Group Co., dated 23 May 1994), executing controlling rights of the Company and management right of the state-owned assets on behalf of Hefei State-owned Assets Management Office, named at that time; 2. From November 1997 to May 2003, controlling shareholder of the Company was Hefei Meiling Group Holding Co., Ltd. (established base on former Meiling Group Co.,, “Meiling Group” for short), an enterprise solely owned by the State; mainly operating the state-owned capital in authorized from State-owned Assets Management Commission of Hefei City, ensuring the maintenance and appreciation of state-owned assets; 3. On 29 May 2003, Meiling Group entered into “Equity Transfer Agreement” with Shunde GreenKel Enterprise Development Co., ltd. (“GreenKel”), the 82,852,683 state-owned shares held by the Company was transfer to GreenKel. After transferring, GreenKel comes to the first largest shareholder of the Company. 4. According to the spirit of “Bulletin of Treatment Opinions on GreenKel Company purchasing State-owned Assets Shares of Listed Company” (GZFCQ[2006] No.: 44) jointly issued from SASAC and Ministry of Finance in April 2006, Meiling Group took back the Meiling Electric 82,852,683 shares from GreenKel by procedures, which has been transferred. In September 2006, relevant equity transfer agreement signed between the Meiling Group and GreenKel is invalid, which was confirmed by the “Award” ((2006) HZZ No.: 104) issued from arbitration commission of Hefei; the state-owned legal person’s 82,852,683 shares, held by GreenKel, should return to Meiling Electric, and relevant equity consideration will pay to GreenKel by Meiling Group . On 29 December 2006, the 82,852,683 shares of Meiling Electric were transfer to Meiling Group by GreenKel, and Meiling Group becomes the controlling shareholder of Meiling Electric again. 5. On 18 May 2006 and 11 January 2007, Meiling Group entered into “Equity Transfer Agreement of Meiling Electric” and “Supplementary Agreement of Equity Transfer of Meiling Electric” respectively with Sichuan Changhong and Changhong Group, among the 123,396,375 shares held by Meiling Group, 82,852,683 shares were transferred respectively to Sichuan Changhong and Changhong Group according to the transfer way regulated in agreement; of this transferring, 45,000,000 shares (10.88% of total share capital of the Company) were transferred to Sichuan Changhong, the first largest shareholder of the Company while 37,852,683 shares (9.15% of total share capital of the Company) were transferred to Changhong Group, the third largest shareholder of the Company. 6. On 29 October 2008, Changhong Group and Sichuan Changhong entered into “Equity Transfer Agreement of Hefei Meiling Co., Ltd.”, the 32,078,846 restricted circulations A shares of Meiling Electric held by Changhong Group were transferred by agreement to Sichuan Changhong. On 23 December 2008, 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 2022, Sichuan Changhong and its concerted action Hong Kong Changhong totally holds 281,832,434 shares of the Company, a 27.36% in total share capital of the Company; Sichuan Changhong directly holds 248,457,724 A-share of the Company, a 24.12% 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 3.24% 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) |
| Offices add. for CPA | 8/F, Block A, Fu Hua Mansion No.8 Chao Yang Men Bei da jie, Dong Cheng District, Beijing, P.R.C |
| Signing Accountants | Wang Xiaodong , Tu Xiaofeng |
(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 reportingperiod
□ Applicable √ Not applicable
VI. Main accounting data and financial indexesWhether it has retroactive adjustment or re-statement on previous accounting data
□ Yes √ No
| 2022 | 2021 | Changes in the current year over the previous year (+,-) | 2020 | |
| Operating income (RMB) | 20,215,220,192.20 | 18,032,957,501.44 | 12.10% | 15,388,050,229.67 |
| Net profit attributable to shareholders of the listed company (RMB) | 244,538,734.49 | 51,898,388.84 | 371.19% | -85,565,716.91 |
| Net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses (RMB) | 102,739,493.47 | -140,217,633.26 | 173.27% | -277,816,055.91 |
| Net cash flow arising from operating activities (RMB) | 1,465,155,748.06 | 160,923,258.10 | 810.47% | 1,403,516,222.46 |
| Basic earnings per share (RMB/Share) | 0.2366 | 0.0497 | 376.06% | -0.0819 |
| Diluted earnings per share (RMB/Share) | 0.2366 | 0.0497 | 376.06% | -0.0819 |
| Weighted average ROE | 4.96% | 1.07% | 3.89 percentage points up | -1.73% |
| Year-end of2022 | Year-end of2021 | Changes at end of the current year compared with the end of previous year (+,-) | Year-end of2020 | |
| Total assets (RMB) | 16,200,361,212.80 | 15,190,469,756.33 | 6.65% | 16,103,355,454.46 |
| Net assets attributable to shareholder of listed company (RMB) | 5,168,286,872.09 | 4,837,334,400.21 | 6.84% | 4,854,173,682.43 |
The cause of the accounting policy change and accounting error correction
□ Applicable √ Not applicable
The lower one of net profit before and after deducting the non-recurring gains/losses in the last three fiscal yearsis negative, and the audit report of last year shows that the ability to continue operating is uncertain
□Yes √ No
The lower one of net profit before and after deducting the non-recurring gains/losses is negative
□Yes √ No
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 AccountingStandards) and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable √ Not applicable
The Company has no difference of the net profit and net assets disclosed in financial report, under both IAS(International Accounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles) in reportingperiod.
(2) Difference of the net profit and net assets disclosed in financial report, under both foreign accounting rules andChinese GAAP (Generally Accepted Accounting Principles)
√ Applicable □ Not applicable
In RMB
| Net profit attributable to shareholders of listed company | Net assets attributable to shareholders of listed company | |||
| Current period | Previous period | Ending amount | Opening amount | |
| Chinese GAAP | 244,538,734.49 | 51,898,388.84 | 5,168,286,872.09 | 4,837,334,400.21 |
| Items and amount adjusted by foreign accounting rules | ||||
| Foreign accounting rules | 244,538,734.49 | 51,898,388.84 | 5,168,286,872.09 | 4,837,334,400.21 |
The Company had no difference of the net profit or net assets disclosed in financial report, under either foreignaccounting rules or Chinese GAAP (Generally Accepted Accounting Principles) in the period.
(3) Reasons for the differences of accounting data under accounting rules in and out of China
√ Applicable □ Not applicable
The “Notice of Relevant Issues of Audit for Company with Domestically Foreign Shares Offering” was issued fromCSRC dated 12 September 2007, since the day issuing, cancel the previous “dual audit” requirement for companieswho offering domestically listed foreign shares (B-share enterprise) while engaging securities practice qualificationCPA for auditing. The Company did not compile financial report under foreign accounting rules since 2007, thefinancial report of the Company is complying on the “Accounting Standard for Business Enterprise” in China, andtherefore, 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
| First quarter | Second quarter | Third quarter | Fourth quarter | |
| Operating income | 4,012,925,239.44 | 6,211,578,311.75 | 5,150,870,767.54 | 4,839,845,873.47 |
| Net profit attributable to the shareholders of the listed company | 5,147,648.23 | 55,227,551.02 | 101,823,245.05 | 82,340,290.19 |
| Net profit after deducting of non-recurring gain/loss attributable to the shareholders of listed company | -22,549,982.34 | 26,657,451.25 | 74,277,789.36 | 24,354,235.20 |
| Net Cash flow generated by business operation | -1,064,503,447.07 | 1,639,556,664.42 | 1,264,173,169.49 | -374,070,638.78 |
Whether there are significant differences between the above-mentioned financial index or its total number and therelevant financial index disclosed in the company’s quarterly report and semi-annual report
□Yes √ No
IX. Items and amounts of non-recurring profit (gains)/losses
√ Applicable □ Not applicable
In RMB
| Item | 2022 | 2021 | 2020 | Note |
| Gains/losses from the disposal of non-current asset (including the write-off that accrued for impairment of assets) | 27,602,023.18 | -133,214.72 | -2,111,295.55 | Found more in “Income from assets disposal” |
| Governmental subsidy calculated into current gains and losses(while closely related with the normal business of the Company, the government subsidy that accord with the provision of national policies and are continuously enjoyed in line with a certain standard quota or quantity are excluded) | 86,846,880.06 | 103,024,250.74 | 99,043,859.77 | Found more in “Other income" |
| Gains/losses of fair value changes arising from holding of the trading financial asset, trading financial liability and investment earnings obtained from disposing the trading financial asset, trading financial liability, and financial assets available for sale, except for the effective hedging business related to normal operation of the Company | 36,077,236.23 | 105,811,461.63 | 123,242,542.42 | Found more in “Income of fair value changes”, “Investment income” |
| Switch back of the impairment for receivables that has impairment test independently | 2,834,795.58 | 3,245,314.13 | 5,061,635.85 | Found more in “Account receivable" |
| Other non-operating income and expenses other than the above | 761,578.29 | 4,867,985.38 | 2,434,283.11 | Found more in “Non-operation income" |
| Less: impact on income tax | 3,581,742.85 | 21,813,023.99 | 34,083,593.36 | |
| Impact on minority shareholders’ equity (post-tax) | 8,741,529.47 | 2,886,751.07 | 1,337,093.24 | |
| Total | 141,799,241.02 | 192,116,022.10 | 192,250,339.00 |
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 inQ&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 inQ&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public ---Extraordinary Profit/loss
III. Management Discussion & AnalysisI. Industry of the Company during the reporting period
1. Refrigerator industry
The refrigerator industry is a highly mature industry, and the market development has entered the slowdevelopment stage. From the overall data, the scale of China's refrigerator industry has faced high growth pressurein 2022, but compared with the entire home appliance industry, the refrigerator industry showed a relative resilience.Although the price of raw materials fell after the rise, the pressure on the cost side of enterprises has eased in someextent, the international environment was complex and severe, and the contraction of external demand was furthermanifested, superimposed by exchange rate changes and high inflation economic environment, the industry demandhas been constantly changing, thus the refrigerator export business went to an obvious falling-back trend.Meanwhile, under the weakening of the vitality of the domestic market, the gradual recovery of overseas productioncapacity and the high base effect of the previous year, the overall production and sales of refrigerators in the industryhave declined significantly compared with the previous year, and the industry has been facing the challenge ofhomogenization in terms of product structure and product technology, and there’san urgent need to innovate inproduct form and technology on the supply side. According to industry online data, China's Refrigerator sales in2022 was 75.58 million units, down 12.6% YOY, of which the domestic sales were 41.23 million units, down 3.3%YOY and the exports were 34.35 million units, down 21.6% YOY.
2.Air-conditioning industry
The air conditioning products are the home appliance category most affected by macroeconomic and weatherfactors. In recent years, due to the continuous downturn in the real estate market, the sales volume of the airconditioning industry has declined for three consecutive years, and the situation where enterprises have risen andrisen with the outbreak of the industry no longer exists. According to the total data of All View Cloud, in 2022, theomni-channel sales volume of China's air conditioning market was 57.14 million units, down 3.3% YOY, and thesales was 196.9 billion yuan, an increase of 0.3% YOY. Although the occurrence of rare high temperature weatherin many places of the country has stimulated consumer demand, plus the industry continued to promote the productstructure improvement and given there’s a firm price increase policy, it’s still difficult to reverse the overall declinein sales in the industry.
Under the influence of global inflation, regional politics, and trade frictions, the export market of the airconditioning industry is under greater pressure. At the same time, the domestic market is also facing adverse factorssuch as the continued downturn in the economy and the contraction of the real estate market. However, the overallpressure bearing capacity of the industry exceeded expectations, and the domestic market declined slightlythroughout the year. After the initial end of the market shock, consumer demand will be somewhat restored, but thenumber of air-conditioned households has reached a high level, and industry demand has entered a new cycle of
stock replacement. In the coming years, the overall sales volume and average sales price will tend to be relativelystable.
3.Washing machine industry
In 2022, under the influence of many factors brought about by high penetration rate on consumer confidence,travel, and house decoration, the development of the washing machine market was less than expected, and the scalegrowth encountered a freezing point. According to the industry online data, the total sales volume of China's washingmachine industry in 2022 was 68.83 million units, down 7.9% YOY, of which the domestic sales were 40.77 millionunits, down 8.4% YOY, and the exports were 28.06 million units, down 7.1% YOY. Meanwhile, affected by thedecline in market scale, the industry competition was further intensified, the average price of products wascollectively declined, and the price of online drum washing machinefell into the negative growth. Under the changeof supply and demand, the structural upgrading has slowed down, and the competition in the washing machineindustry has entered the deep-water area.II.Main businesses of the company engaged in during the PeriodThe Company is one of China's major electric appliance manufacturers, possesses four major domesticmanufacturing bases in Hefei, Mianyang, Jingdezhen and Zhongshan, and overseas manufacturing bases inIndonesia and Pakistan. Currently, we have completed the industry layout of white electricity basically, coveringthe full product line including refrigerator, washing machine, air conditioner, kitchen and bath, small householdappliances and others, at the same time, the Company enters the new industrial fields as bio-medical and with certainachievements made.Over the past 40 years, the Company has always been adhering to the "independent innovation, created inChina", and always focus on refrigeration industry without stop, elaborately building the core competitiveness ofenterprises by technological innovation and product innovation. Relying on the cutting-edge R&D team andadvanced technology, Meiling continue to achieve breakthrough results in the variable frequency, intelligence,refreshment, thin-wall, odourless, energy-saving, forced air cooling, deep cooling and other fields. The Companyhas established the first RoHS public testing center, the national enterprise technology center, national industrialdesign center, and the 5G industrial Internet innovation application laboratory in Anhui Province. In recent years,the Company has won many national honorary titles such as "Smart Refrigerator Intelligent Manufacturing PilotDemonstration Project", "National Green Factory", "National Industrial Design Center" and "National ApplianceIndustry Quality Leading Enterprise". Meanwhile, a number of Meiling products have frequentlywon manydomestic awards, constantly demonstrating the ability and strength of Meiling Intelligent Manufacturing andMeiling Intelligent Innovation Technology. At the 2022 China Refrigerator Industry Summit Forum, Meiling greatlywon the 2022 China Refrigerator Industry Odor Purification and Sterilization Pioneer Brand Award, and its productMeiling Ten-minutes purification series BCD-550WP9BT won the "2022 China Refrigerator Industry Full SpaceSterilization Best-selling Product" award, and Meiling spectrum fresh refrigerator BCD-413WP9BY won the "2022Outstanding Channel Performance Product" award; Changhong big 3P Living-room and Dining-room Shared AirConditioner KFR-72LW/Q6C+R1 won the "Mechanical Air Conditioner of the World's Farthest Air-supply Distance
of Big 3P Living-room and Dining-room Shared"; the drying channel washing technology of Meiling washingmachine won the "Annual Technological Innovation Achievement"; Meiling kitchen appliances, small householdappliances and water dispenser products won the "National Household Appliances Industry Quality Leading Brand".In addition, Zhongke Meiling, a subsidiary of Meiling Biomedical Business, was recognized by the Ministry ofIndustry and Information Technology of the People's Republic of China as the third batch of specialized and specialnew "little giant" enterprises and was successfully listed on the Beijing Stock Exchange in October 2022.
In recent years, driven by the industry transformation and upgrades and consumption upgrades, the Companyalways adheres to the strategy of smart and variable frequency products, promoted the Company’s products totransform and upgrade to become intelligent and high-end and comprehensively enhanced the competitiveness ofproducts in the industry by grasping the opportunities of refreshment, thin-wall, odourless, air cooling and energyefficiency 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.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 200.38billion yuan, a 99.12% of the operating income.III. Core Competitiveness Analysis
(1) Brand capacity
The Company is one of the famous home appliances manufacturers in China, owns several product lines suchas refrigerator, The "Meiling" brand is listed as one of the most valuable brands in China, which owns the youthfulbrand "Athena" and it gradually builds the brand influence of "M Fresh" products. In recent years, the Companyhas continuously reshaped its brand image and enhanced its core competitiveness through differentiated innovationmeasures such as technological innovation, product innovation and service innovation. Through continuouscrossover cooperation, it ranks the first group in the industry in the We-media platform concerned by young people,and the process of brand rejuvenation has been accelerating. In 2022, the brand promotion activities planned by theCompany such as "Installed All Over China" and "Resume Refrigerator" won two awards: "2022 Innovative SceneMarketing Gold Case" and "2022 Event Marketing Gold Case" respectively. In addition, the Company also reliedon diversified brand strategy, and through multi-pronged initiatives, it comprehensively integrated and acceleratedto achieve interaction and resonance with users, effectively enhanced the brand's popularity and reputation. Withthe CCTV "News Network", "People's Daily" and other mainstream media have reported in abundance, it alsopromoted the Company's brand image to be continuously enhanced.
The Company will continue to practice the brand proposition of "Meiling, let the beauty come", focus on"onegoal", closely follow the "three main lines", implement the "four management systems", unswervingly deepen themarketing transformation to develop the work for business idea, seize the new channel marketing outlet by crossoverinfluence, take "Meiling fresh", "Meiling thin", "Meiling purification", "Meiling embedded" and "Super Capacity"
as the communication breakthrough, and take the co-creation of all employees as the cornerstone, it will carry outall-round brand construction from the aspects of brand, product and culture, thus to strengthen consumers' sense ofidentity and belonging to the brand, shape the differentiated competitiveness of the brand, and realize brandrevitalization.
(2) Product capacity
In terms of refrigerator products, the Company has independently developed core technologies such as "zeroimpact" and "micro-freezing" fresh-keeping technology, water molecule-activated fresh-keeping technology,comprehensive thin GLS integration technology, MCN+ clean taste preservation technology, etc., leading therefrigerator industry to return to the arena of freshness preservation and fully enter the era of "thinning" and "long-term purification". Meanwhile, the Company has successively released the "M Fresh" first-generation series fresh-keeping refrigerators equipped with water molecule activation preservation technology, the "M Fresh" second-generation fresh-keeping refrigerators equipped with "zero impact" and "micro-freezing" fresh-keeping technology,the ultra-thin folio 529W series refrigerators, the "Ten-minutes purification" second-generation series refrigeratorswith upgraded purification technology, the 600L cross large narrow door series refrigerator, the French two-door400L large narrow door series refrigerator, and the M Fresh "Super capacity" BCD-681WQ3S refrigerator equippedwith large-capacity and ADF+ negative ion antibacterial magic stone series (O2O) glass door refrigerator, and theindustry's thinnest 500L and 600L volume level of the cross worry-free series refrigerator501WPU9CX/601WPU9CT, etc., thus created the brand business cards of "Meiling Fresh", "Meiling Thin" and"Meiling imbedded" and established the brand image.In term of the washing machine products, through the three black-technology development of the barrel coneexpansion circle technology, oblique angle stabilization technology, cloud disk condensation technology, theCompany has shaped the washing machine with "thin” “big", "smart" industry card, and in the "very thin" drumplatform, the Company have continually released the super oxygen purification and 5G series products. The afore-said washing machine products not only continues the core function of the ultra-thin, large cylinder diameter, moreintelligent, more healthy, but also its automatic delivery and voice technology have become more convenient, andthe first "drying tunnel wash" function provides the clean, healthy and purification effects, once more revealing thewashing machine products with core strengthin the core technology with ultra-high standard.In terms of air conditioning products, the Company adheres to the product concept of "good sleep + good air+ good comfort", focuses on product upgrading around quality, experience and health, strictly controls quality fromcomfort and reliability indicators, creates a brand experience of "extremely quiet, extremely economical , andextremely intelligent" of air conditioning, and carries out product series layout around the three core functions of"fresh air ventilation, self-cleaning, and total dust-free". The Company continues to expand the breadth and depthof air conditioning products, and drives the interconnection between various products under the guidance of theCompany's overall intelligent strategy. The Company has launched Changhong "Lookup" series Q6E hang-up andQ6E cabinet unit, launched the Q7A hang-up of the all-dust-free fresh air conditioner centering on the "dust-freefresh air", which is the industry's first all-dust-free fresh air conditioner, thus established the industry benchmark of"the all dust-free fresh air is the best fresh air", and launched the Q7V hang-up of zoned temperature control air
conditioner centering on "free wind" to solve the pain points of different temperature needs of users in the samescene. In addition, in order to meet the demand for intelligent air conditioning products in countries and regionswith underdeveloped networks, the Eva, Grace, Morandi and other series of products have been developed to meetthe needs of customers for multilingual offline intelligent voice control.In terms of kitchen and bathroom and small household appliances, in addition to some traditional electricalappliances, the Company focuses on creating tea ecological electrical appliances and services, intelligent cleaningappliances and gas-type hot water appliances. In terms of small household appliances, according to the needs ofusers, it carefully cultivated the industry field, strengthened the integration of product functions, made break-through in the bottleneck of product refrigeration technology, and launched the industry's first smart refrigeratortea-cabinet water dispenser machine, and developed the intelligent tea art machines for mass consumers. In termsof kitchen and bathroom appliances, it improved the array of high-end gas products with full screen, lower drumDC, double gas and dual regulation, intelligent monitoring, segmented combustion and other technologies to leadthe high-end and high-quality development of the industry; also, it had a layout in the new track in the cleaningelectrical appliance industry, and launched the first floor scrubber product to enter the market strongly.In terms of the biomedical development, the Company adhered to the brand concept of "taking products as themain carrier and delivering core values to users", focused on the field of life sciences, continued to promote productiterative innovation and quality upgrading based on user scenario-based needs, and provided users with professionalfull-scenario solutions, so as to shape a safe and stable brand image and continuously enhanced brand influence. Itlaunched a new generation of "Cloud-Intelligent-Safe Automation Sample Library", and originally developed the -80°C independent storage unit, which has the advantages of high compatibility, multi-partition, phased and multi-system guarantee, and integrated IoT technology to provide users with safer and more intelligent automated samplestorage solutions.
The Company has a relatively advanced and perfect R & D and quality assurance system, passed ISO9001,ISO14001, ISO45001 and other management system certification, and its products have quality assurance withreliableproduct performance. Meanwhile, the Company owns the "National Enterprise Technology Center","National Industrial Design Center", "National Intellectual Property Demonstration Enterprise", "NationalIndustrial Product Green Design Demonstration Enterprise", "National Technology Innovation DemonstrationEnterprise", "China Industry-University-Research Cooperation Innovation Demonstration Enterprise", "AnhuiGreen Energy Saving Refrigerator Engineering Technology Research Center", "Anhui Energy Saving GreenPreservation Refrigerator Engineering Research Center", "Anhui Manufacturing Innovation Center" and otherauthoritative certifications as a strong guarantee. In terms of technical research, it’s been committed to theapplication of basic technology research and industrialization transfer, and has established a technical strategic planwith "intelligence, frequency conversion, simulation, and preservation" as the core technology and the "refrigeration,new materials, and foaming" as the key technology. In terms of product development, the Company is committedto user-centric, adhering to the product strategy of "fresh, thin, large and imbedded", creating the brand mentalityof "Meiling fresh" in function, creating a "thin imbedded integration" design aesthetic in space, creating a storagebenchmark of "ultra-high volume ratio" in terms of volume. Relying on technological innovation and breakthroughs,
it has been promoting the product upgrading, and constantly developing healthy, green and intelligent products thatmeet user needs, so as to empower consumers with a better life. At the strategic level, the Company continues toadhere to the core idea of "intelligent strategy and productism", and promotes the Company's product transformation,technological innovation and industry leadership by promoting the follow-up research and development, promotionand technological upgrade of intelligent and frequency conversion products.
(3) Operation capacity
The Company continues to carrying out bench-marking activities to improve the operation and managementstandards and competitiveness of the Company. At the same time, the internal management capability has beencontinuously improved by continuing to carry out the improvement work in "human efficiency, money efficiencyand material efficiency". The company established a hierarchical sharing system with clear goals, quantitativeindicators, performance-oriented performance appraisal and incentives to activate internal productivity. Takingvalue chain management as the main line, continued to carry out value creation work, and enhanced the company'scompetitiveness. At the same time, continuously improved the internal control system and improved the ability toprevent risks.
(4) Marketing ability
The Company has established a relatively complete sales network and service system, which can provide userswith high-quality services covering all categories of white goods. The domestic market is actively accelerated torealize the marketing transformation from product line-oriented sales management to channel- and user-orientedbusiness services, from single-category marketing to full-category marketing, quickly building an operationmanagement system with reasonable commercial inventory management as the core and a value managementsystem core with terminal retail price; through determined bench marking match, achieved products leading andefficiency improvement and builds the capability for marketing system and development potential for long periodof time.In terms of the overseas markets, it made the full play of the industrial advantages of internal and externalsynergy, air-conditioning and washing product synergy and global collaboration. While continuously improvingoverseas product research and development capabilities and product competitiveness, it committed to helpcustomers do well in market segmentation, plan the products that meet the target market. Based on the marketingcapabilities accumulated in China for many years, it has been driving the overseas market segments by tailoredmarketing strategies, providing customers with value-added services such as marketing promotion support on thebasis of high-quality products, and improving core customer satisfaction. Meanwhile, we actively explored theoverseas markets, expanded new customers, and constantly optimized the customer structure; It accelerated theoverseas brand building, enhanced the overseas brand familiarity, deepened the overseas marketing channels andpromotion capacity building.IV. Main Business AnalysisIn 2022, in the face of the macroeconomic downturn, the continued sluggish consumption, the overall declineof the industry, In addition, the impact of factors such as high temperature power limit on the market, all units of
the Company united and forged ahead, and finally achieved a contrarian growth in sales scale and a significantimprovement in operating quality. During the reporting period, the Company's operating income reached 202.15billion yuan, a YOY increase of 12.10%, and achieved a net profit of 2.77 billion yuan, a YOY increase of
218.17%%, taking a solid step towards positive and stable operation.
(1) Refrigerator (cabinet) industry
In the domestic market, the Company adhered to the product strategy of "boutique + explosive + fine explosiveproducts", focused on "fresh, thin, large, embedded" product layout, and with offline "big narrow door" series,online "worry-free embedded" and "Magic Stone" series products being successfully launched, it promoted thepositive operation of products. In terms of basic channels, the digital transformation area has been expanded, thescale has been improved, and the front-installing market and the ODM business have been strategically expanded,with a large increase in scale. Upon the steadily improving online C-end operation capabilities, the profit and losshave been improved, and the B-end expansion capabilities have been enhanced, as well as the online scale hasincreased by nearly 30% YOY.
For the overseas market, it adhered to the "production determined by container arrangement", adhered to theintegration of production, marketing and supply, increased the proportion of direct delivery, reduced the totalinventory, and improved the inventory turnover rate, so as to improve capital efficiency. In terms of marketexpansion, it seized the opportunity to enhance the market opportunity, improve the product and customer structure,consolidate the advantageous market, build a base for its own brand business, and it focused on exploring the Beltand Road market.
During the reporting period, the Company's refrigerator (cabinet) business achieved revenue of about 73.13billion yuan, a YOY decrease of 5.34%.
(2) Air-conditioning industry
In the domestic market, it mapped out to do the online explosive boutique product of cabinet and hang-upproducts and expand the unique value products offline. By developing new customers and making single boutiqueproducts, and implementing special action plans, it has achieved the initial results in terms of channel improvement.In addition, the large-scale high temperature weather across the country has significantly driven the retail, and theoutbreak of O2O more-direct channels has exceeded expectations, obtained with a large YOY increase; Also, it hasstrengthened the cooperation with core strategic customers, and the ODM business has increased significantly.
In terms of overseas markets, we have focused on key customers, developed new, high-quality, and frequencyconversion products and continuously improved customer service capabilities, ensuring delivery, promoting orderturnover, concentrating resources, and making rapid breakthroughs, and further enhancing the threshold of TOP10major customers; Upon centering on Latin America, the Middle East and other base markets, it has seized newopportunities for market development, and increased the proportion of revenue in core markets; it continuouslyinjected impetus into business development by increasing the development of new customers.
During the reporting period, the Company's air conditioning business achieved a revenue of about 97.82
billion yuan, a YOY increase of 42.44%.
(3) Washing machine industry
The Company's washing machine industry adheres to the competitive strategy of differentiation and highquality, and continuously optimizes and adjusts the product structure. In the domestic market, it used thedifferentiated competitive advantage of "super thin" to closely focus on user needs, continued to promote productleading strategies, and completed the layout of high-end products such as 5GIIcomplete set of lookup series,superoxide purification series, and high-box pulsator wave waterfall second generation fashion version. Itcontinuously promoted the technological innovation, carried out the layout of the industry's original "drying tunnelwashing" technology, completely solved the problem of easy blockage and unhealthy drying of the drying tunnel ofthe wash-and-drymachine, which has been highly recognized by the industry and consumers.In terms of foreign markets, we actively expand the washing machine business with industrial innovationthinking. We developed a 27-inch ultra-large capacity wave washing machine exclusively for overseas, and realizedthe global layout of the product platform to meet the needs of overseas products. By improving customer service,we achieved the rapid development and delivery of new products to promote the rapid order turnover. Uponvigorously promoting the ultra-thin drum series, the profitability of the product has been significantly improved.During the reporting period, the Company's washing machine business achieved the revenue of about 7.54 billionyuan, a YOY increase of 12.64%.
(4) Kitchen & bathroom, small appliances
Adhering to tea appliances, gas water heaters and clean electrical products as the core, focusing on core productareas and steadily stabilizing the foundation, it has improved the scale of basic category products and graduallyestablished the industry influence. Based on the traditional marketing, the Company actively embraced the newretail, vigorously explored the emerging channels, comprehensively sorted out the organizational structure of offlinechannels from the inside, and promoted the flattening transformation of offline channels. It has carried out the onlinecomprehensive layout of traditional e-commerce Tmall, Jingdong, Pinduoduo and other e-commerce platforms,meanwhile based on Douyin, Xiaohongshu, Kuaishou and Youtube four emerging e-commerce platforms, with thegoal of creating explosive products, it concentrated resources to focus on key products in categories to achieve brandawareness improvement not only through extensive grass cultivation but also to shape the brand story to consolidatethe dominant position of Meiling brand in the industry. During the reporting period, the Company's kitchen andbathroom and small household appliances business achieved the revenue of about 16.06 billion yuan, a YOYincrease of 20.72%.
(5)Biomedical
The Company's biomedical industry is deeply engaged in the field of biological sciences. Based on marketdemand, it continuously strengthens the innovation and research and development of new technologies and newproducts, optimizes the research and development process, stimulates the vitality of innovation and research anddevelopment, and forms sustainable technological innovation capabilities; Based on market demand, it carried out
the in-depth market segmentation channel layout, and continuously improved market service level,promoted thestandardization of production processes, improved the level of value chain management and improved the capacityefficiency and product quality; The Company absorbed outstanding talents, improved the construction of talenttraining system, and stimulated the Company's vitality and creativity. Its biomedical industry is mainly carried outby its subsidiary Zhongke Meiling, whose products cover the full temperature zone of -196°C to 8°C, and have beenwidely used in medical systems, blood systems, disease control systems, health systems, university scientificresearch institutions, biomedical enterprises, genetic engineering and life sciences and other fields. Zhongke Meilinghas been officially listed on the Beijing Stock Exchange on October 18, 2022 and publicly issued shares. Duringthe reporting period, the revenue of biomedical business was about 3.52 billion yuan, a YOY decrease of 20.12%.(ii) Revenue and cost
1. Constitute of operation revenue
In RMB
| 2022 | 2021 | Increase/decrease y-o-y (+,-) | |||
| Amount | Ratio in operation revenue | Amount | Ratio in operation revenue | ||
| Total operation revenue | 20,215,220,192.20 | 100% | 18,032,957,501.44 | 100% | 12.10% |
| On Industry | |||||
| Manufacture of household appliances | 20,037,625,297.52 | 99.12% | 17,331,645,754.46 | 96.11% | 15.61% |
| Other business | 177,594,894.68 | 0.88% | 701,311,746.98 | 3.89% | -74.68% |
| On products | |||||
| Refrigerator, freezer | 7,664,575,851.66 | 37.91% | 8,165,836,380.29 | 45.28% | -6.14% |
| Air-conditioning | 9,781,896,262.72 | 48.39% | 6,867,304,359.29 | 38.08% | 42.44% |
| Washing machine | 753,549,855.38 | 3.73% | 668,996,516.82 | 3.71% | 12.64% |
| Small appliance and kitchen & toilet | 1,605,989,880.27 | 7.94% | 1,330,315,557.62 | 7.38% | 20.72% |
| Other products | 231,613,447.49 | 1.15% | 299,192,940.44 | 1.66% | -22.59% |
| Other business | 177,594,894.68 | 0.88% | 701,311,746.98 | 3.89% | -74.68% |
| Area | |||||
| Domestic | 15,038,808,862.28 | 74.39% | 13,212,985,690.01 | 73.27% | 13.82% |
| Foreign | 5,176,411,329.92 | 25.61% | 4,819,971,811.43 | 26.73% | 7.40% |
| Sub-sale model | |||||
| Direct sales | 177,594,894.68 | 0.88% | 701,311,746.98 | 3.89% | -74.68% |
| Distribution | 20,037,625,297.52 | 99.12% | 17,331,645,754.46 | 96.11% | 15.61% |
2.Situation of Industry, Product and District Occupying the Company’s Business Income and Operating Profitwith Profit over 10%
√ Applicable □Not applicable
In RMB
| Operating revenue | Operating cost | Gross profit ratio | Increase/decrease of operating revenue y-o-y | Increase/decrease of operating cost y-o-y | Increase/decrease of gross profit ratio y-o-y | |
| On Industry | ||||||
| Manufacture of household appliances | 20,037,625,297.52 | 17,325,069,941.59 | 13.54% | 15.61% | 13.43% | 1.66% |
| On products | ||||||
| Refrigerator, freezer | 7,664,575,851.66 | 6,346,869,532.77 | 17.19% | -6.14% | -8.62% | 2.25% |
| Air-conditioning | 9,781,896,262.72 | 8,770,265,668.68 | 10.34% | 42.44% | 37.81% | 3.01% |
| Small appliance and kitchen & toilet | 1,605,989,880.27 | 1,408,047,190.15 | 12.33% | 20.72% | 21.99% | -0.90% |
| Area | ||||||
| Domestic | 14,871,610,639.87 | 12,793,366,256.67 | 13.97% | 18.77% | 18.69% | 0.05% |
| Foreign | 5,166,014,657.65 | 4,531,703,684.92 | 12.28% | 7.40% | 0.84% | 5.71% |
| Sub-sale model | ||||||
| Direct selling | 20,037,625,297.52 | 17,325,069,941.59 | 13.54% | 15.61% | 13.43% | 1.66% |
In the event that the statistical caliber of the company's main business data is adjusted during the reporting period,the company's main business data in the latest year after adjustment based on the caliber at the end of the reportingperiod
□ Applicable √Not applicable
3. Income from physical sales larger than income from labors
√ Yes □ No
| Industries | Item | Unit | 2022 | 2021 | Increase/decrease y-o-y (+,-) |
| Manufacture of household appliances | Sales volume | 10 thousand pieces/set | 2,775.34 | 2,291.75 | 21.10% |
| Production | 10 thousand pieces/set | 2,789.28 | 2,255.60 | 23.66% | |
| Inventory | 10 thousand pieces/set | 109.08 | 95.14 | 14.65% |
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 Companyup to the reporting period
□ Applicable √Not applicable
5. Constitute of operation cost
Industry classification
In RMB
| Industries | Item | 2022 | 2021 | Increase/decr |
| Amount | Ratio in operation cost | Amount | Ratio in operation cost | ease y-o-y (+,-) | ||
| Manufacture of household appliances | Raw material | 15,777,586,805.86 | 91.07% | 13,942,721,443.16 | 91.29% | 13.16% |
Note: Nil
6. Whether the changes in the scope of consolidation in Reporting Period
√ Yes □ No
More details can be seen in the report “VII. Changes in the scope of the merger” and “VIII. Interests in otherentities” of “Section 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) | 11,790,336,957.70 |
| Proportion in total annual sales volume for top five clients | 58.32% |
| Proportion of the related parties’ sales in total annual sales volume for top five clients | 35.61% |
Information of top five clients of the Company
| No | Name | Sales (RMB) | Proportion in total annual sales |
| 1 | Client I | 6,836,157,232.15 | 33.83% |
| 2 | Client II | 3,857,275,864.05 | 19.08% |
| 3 | Client III | 499,595,740.27 | 2.47% |
| 4 | Client IV | 359,868,646.79 | 1.78% |
| 5 | Client V | 237,439,474.44 | 1.17% |
| Total | -- | 11,790,336,957.70 | 58.32% |
Other notes of main clients
□ Applicable √ Not applicable
(2) Main suppliers of the Company
| Total purchase amount from top five suppliers (RMB) | 3,715,431,056.70 | |
| Proportion in total annual purchase amount for top five suppliers | 21.18% | |
| Proportion of related party’s purchase in total annual purchase amount for top five suppliers | 10.92% |
Information of top five suppliers of the Company
| No | Name | Sales (RMB) | Proportion in total annual purchase |
| 1 | Supplier I | 1,309,767,526.31 | 7.47% |
| 2 | Supplier II | 831,473,318.98 | 4.74% |
| 3 | Supplier III | 616,571,560.92 | 3.51% |
| 4 | Supplier IV | 489,272,611.14 | 2.79% |
| 5 | Supplier V | 468,346,039.35 | 2.67% |
| Total | -- | 3,715,431,056.70 | 21.18% |
Other notes of main suppliers
□ Applicable √Not applicable
(iii) Expenses
In RMB
| 2022 | 2021 | Increase/decrease y-o-y (+,-) | Note of major changes | |
| Sales expense | 1,428,874,991.47 | 1,364,640,404.75 | 4.71% | No major changes. |
| Administrative expense | 358,586,472.37 | 333,588,775.37 | 7.49% | No major changes. |
| Financial expense | -55,214,680.04 | -58,402,782.80 | 5.46% | No major changes. |
| R&D expense | 560,383,547.49 | 465,891,096.09 | 20.28% | Due to the increase in R&D investment during the reporting period |
(iv)Investment in R&D
√Applicable □Not applicable
| Projects | Purpose | Progress | Goals to be achieved | Expected impact on the future development of the Company |
| "Super narrow door" refrigerator research and development | In the era of every inch of land values inch of gold,the consumers' pain point of "large-volume refrigerator demand limited by small space" is becoming more prominent.It’s designed to solve this consumption pain point and realize the user needs of refrigerators "narrow, thin and supercapacity" and "small sizewith large capacity". | Completed and the product is available | With the strong support of "full space integration technology", the large and narrow door series refrigerator 600WUP9BT has a width of 833mm and a depth of 659mm, making it the narrowest and thinnest cross door refrigerator in the industry, achieving a capacity of 600L. | in the industry sets off a super narrow door phenomenon, and the phenomenal products continue to emerge, highlighting the innovation strength of the enterprise to the industry. By seizing the main trend logic of “meeting the consumption trend to meet user needs", empowering product upgrading with technological innovation, activating the existing market and exploring the incremental market, the "super narrow door" series of refrigerators will continue to play an important role in promoting the product structure and the Company’s efficiency in the future. |
| "Worry-free" refrigerator research and development | Solve the user's demand for thinner and larger built-in refrigerators under the trend of home integration | Completed and the product is available | Through the full space integration technology and innovative bottom heat dissipation forward in and forward out design, the single-side reservation is less than 1cm close to 0 distance, and the back is 0 distance against the wall, a real define of the "zero flat embedding" true embedding standard | As the penetration rate of household integration and cabinet electricity integration gradually increases, from the perspective of market development trends and user needs, embedded refrigerators have become the main direction of product iterative upgrading. Under the premise of being user centered, we continue to innovate the size of the refrigerator box, and are committed to developing larger and thinner embedded refrigerators, allowing consumers to truly achieve the perfect integration of household appliances and home appliances. |
| Research and development of drum drying tunnelwashing technology | Solve the problem of plush blocking of the pipeline of drum washing and drying products, and solve the pain points of users | Completed and the product is available | The drying tunnel has no plush blocking failure, and the user experience is improved | By solving consumer pain points, Meiling washing machine product competitiveness and consumer satisfaction are enhanced |
| 27 inch mechanical stirring type pulsator | Meeting the differentiated needs of the Latin American market | Completed and the product is available | Meet the agitating performance standards for the region being sold | Enrich Meiling's overseas product lineup through differentiated large pulsators, thus improving product gross profit |
| Research and development of complete set of intelligent voice products | As a component of complete sets of household appliances, complete the research and development of intelligent voice refrigerators and washing machines, and support the layout of complete sets of household appliances | Refrigerators and washing machines have been launched | Freeze the technical status and launch the product | Intelligent technology improves and supports the intelligent transformation of home appliances |
| Refrigerator IOT big data analysis and mining system for quality control | Improve the efficiency of product quality monitoring and analysis | At present, the design verification of the system architecture and the construction of the data platform have been completed | Realize IoT data analysis, monitoring and early warning of IoT product quality | Improve the efficiency of company quality analysis and monitoring, improve product quality, accelerate the corresponding speed, and reduce user complaints. |
| Research and application of dual DC drive technology of inverter air conditioner | Research and develop the industry's first inverter hanging air conditioning and fresh airconditioning dual external DC drive technology, overcome the industry's common built-in drive scheme of fresh air conditioning power chip overheating and PS-9 problems, and build a new electronic control platform for hanging upproducts. | Mass produced | The project technology realizes the power reduction of switching power supply, increases new functions such as power detection and filter dirty blocking detection at zero cost, and achieves industry-leading competitiveness of the solution. | The promotion and application of the scheme can greatly enhance the comprehensive competitiveness of products of various specifications. |
| The development of living room and dining room shared C cabinet machine series products | Based on the insight into user needs, we break through the technical problems of ultra-long golden ratio air outlet and ultra-long distance air supply, and develop a new shape of household air conditioner of living room and dining room shared. | Completed and the product is available | Through the structure of the upper and lower air outlets and the multi-modal three-dimensional air supply technology, the pain points of the traditional cabinet machine "wide air supply range, the living room blows directly", "the air supply distance is short, the dining room cannot | optimized the product line structure, and enhanced the quality, taste and brand reputation of the product. |
| blow" are solved, improved the differentiated competitiveness of products, and realized the hot sales of a series of products driven by single products. | ||||
| Fridge tea-cabinet water dispenser | Solve the pain points of ice water use and provide refrigerated storage space | Completed and the product is available | The industry's first refrigerator tea-cabinet water dispenser product | Enhance brand image, lead the development of tea machine industry, and improve profit margin |
| Solid wood tea-cabinet water dispenser | The body material of the tea-cabinet water dispenser is changed to solid wood and combined with furniture | Completed and the product is available | Combine and experiment with home appliances and home furniture | High-end products, improving gross margin |
| JSLQ27-16TN3 zero cold water condensing gas water heater | Develop a zerocondensing water combustion and heating product, achieve level 1 energy efficiency, and realize instant heating at the time of use. | Completed and the product is available | Users do not need to discharge cold water, turn on the hot water faucet can use hot water at any time, while saving energy and gas, reducing gas costs | Enrich the Company's combustion product line and enhance brand value |
| New refrigerant R290 mobile air conditioner series product development | New product development, entering the European market | Completed and the product is available | Improve the product line | Improve the Company's product line, seize the developed country market, and enhance the Company's brand image |
| UVC series air conditioning product development | Increase product selling points | Completed and the product is available | All products of split-type air conditioners can add UVC function as an option | Enrich product functions and increase the selling points of the Company's products |
| Research and industrialization project of ultra-low temperature intelligent biobank | The project mainly serves the centralized storage and management of large batches of biological samples, which can maximize the efficiency of sample preparation quality, reduce cross-contamination, improve sample preparation and processing speed, and trace the source to reduce the risk of errors | Validation phase | Solve the problems of freeze-thaw during sample storage, uneven temperature fluctuations in the library during operation, accurate scanning of samples in batches, and long-term stable operation of various automation equipment in low temperature environments, and realize the mass production and industrialization of ultra-low temperature intelligent biobanks | The success of this project can realize the mass production and industrialization of ultra-low temperature intelligent biobanks, help improve the popularity of the Company's products, and bring new growth to the Company's business to expand into new fields, new industries and new markets. |
| Development and Application of Biological Sample Database Information Management System | The project combines Internet of Things technology to collect, organize, and share information and data from the entire life cycle of biological sample | Validation phase | According to the existing functions of the software and different customer needs, the software is divided into versions to meet the needs of different users | To meet the urgent needs of market users for standardized, specialized, practical, and stable biological sample information management systems, upgrade our existing sample management software, and develop a good information interaction and |
| collection, processing, storage, and use, and implement multi-angle management for data security throughout the process, achieving remote resource sharing and information security supervision of biological samples. | information assurance platform to meet user needs, which will play an important role in promoting the company's future development in the field. | |||
| Laboratory biosafety technology - research and development of benchtop refrigerated centrifuges | Aiming to the strong demand for laboratory sample pretreatment centrifugation, the project accelerates the layout of the centrifuge market, and designs and develops a series of refrigeration laboratory centrifuge products to meet the needs of users' experiments and work. | Validation phase | Realize mass production and sales | Meet the market's procurement demand for various centrifuge products, accumulate rich technology and production experience for the future research and development of such products, enter the centrifuge market, and enhance the Company's comprehensive competitiveness. |
R&D personnel
| 2022 | 2021 | Change proportion | |
| Number of R&D personnel (person) | 1,533 | 1,312 | 16.84% |
| Proportion of R&D personnel | 15.07% | 13.04% | 2.03 percentage points up |
| Educational background | |||
| Undergraduate | 1,029 | 844 | 21.92% |
| Masters | 106 | 99 | 7.07% |
| Age composition | |||
| Under 30 | 389 | 337 | 15.43% |
| 30~40 | 584 | 473 | 23.47% |
Investment of R&D
| 2022 | 2021 | Change proportion | |
| Investment for R&D (RMB) | 655,917,101.66 | 623,553,400.81 | 5.19% |
| R&D investment/Operating revenue | 3.24% | 3.46% | 0.22 percentage points down |
| Capitalization of R&D investment (RMB) | 135,753,117.26 | 185,278,347.99 | -26.73% |
| Capitalization of R&D investment/R&D investment | 20.70% | 29.71% | 9.01 percentage points down |
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 previousyear
□Applicable√ Not applicable
Reasons and rationality of the major changes of the capitalization rate of R&D investment
□Applicable√ Not applicable
(v) Cash flow
In RMB
| Items | 2022 | 2021 | Increase/decrease y-o-y (+,-) |
| Subtotal of cash in-flow from operation activity | 21,950,834,479.70 | 19,122,732,939.87 | 14.79% |
| Subtotal of cash out-flow from operation activity | 20,485,678,731.64 | 18,961,809,681.77 | 8.04% |
| Net cash flow from operation activity | 1,465,155,748.06 | 160,923,258.10 | 810.47% |
| Subtotal of cash in-flow from investment activity | 1,205,533,608.35 | 2,089,320,180.25 | -42.30% |
| Subtotal of cash out-flow from investment activity | 1,711,918,251.95 | 2,071,396,229.61 | -17.35% |
| Net cash flow from investment activity | -506,384,643.60 | 17,923,950.64 | -2925.18% |
| Subtotal of cash in-flow from financing activity | 1,647,463,355.44 | 1,700,242,527.68 | -3.10% |
| Subtotal of cash out-flow from financing activity | 2,402,373,865.79 | 2,450,727,546.66 | -1.97% |
| Net cash flow from financing activity | -754,910,510.35 | -750,485,018.98 | -0.59% |
| Net increased amount of cash and cash equivalent | 273,027,138.19 | -585,334,883.53 | 146.64% |
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 andreceived 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 ofinvestment decreased from a year earlier.Major changes in net cash flow from financing activity mainly because the cash paid for debt services increasedfrom a year earlier.Explanation on reasons for the significant differences between the net cash flow arising from operation activitiesin 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
| Amount | Ratio in total profit | Note | Whether be sustainable (Y/N) | |
| Investment income | 33,018,838.80 | 11.52% | It is mainly due to the investment income of joint venture investment, creditor's rights investment and other non-current financial assets during the holding period. | No |
| Gains/losses from fair value changes | 24,137,501.27 | 8.42% | It is mainly due to the appraisal income of the company's forward foreign exchange contracts and other non-current financial assets in this period. | No |
| Asset impairment | -56,496,124.06 | -19.71% | It is mainly due to the depreciation of inventory and impairment loss of intangible assets accrued by the company in this period. | No |
| Non-operation income | 9,249,343.27 | 3.23% | It is mainly due to the fine income received by this in this period. | No |
| Non-operation expenditure | 8,487,764.98 | 2.96% | It is mainly due to the scrapping loss of non-current assets and public welfare donations of the company in this period. | No |
| Credit impairment losses | -164,446,765.99 | -57.37% | It is mainly due to the impairment loss of accounts receivable accrued by the company in this period. | No |
VI. Analysis of assets and liability(i) Major changes of assets composition
In RMB
| Year-end of 2022 | Year-begin of 2022 | Ratio changes(+,-) | Note of major changes | |||
| Amount | Ratio in total assets | Amount | Ratio in total assets | |||
| Monetary fund | 6,839,421,779.13 | 42.22% | 5,938,823,396.21 | 39.10% | 3.12% | It is mainly due to the increase in net cash flow generated by the company's operating activities in this period. |
| Account receivable | 1,306,871,945.85 | 8.07% | 1,440,874,691.28 | 9.49% | -1.42% | It is mainly due to the increase in the amount of bad debt provision for accounts receivable in this period. |
| Contract assets | 4,301,610.03 | 0.02% | 0.02% | It is mainly due to the company's new project quality guarantee fund in this period. | ||
| Inventory | 1,710,306,933.71 | 10.56% | 1,356,357,419.80 | 8.93% | 1.63% | It is mainly due to the increase in production of the company in this period. |
| Investment real estate | 52,898,060.89 | 0.33% | 53,149,934.45 | 0.35% | -0.02% | No major changes. |
| Long-term equity investment | 100,384,428.50 | 0.62% | 86,631,660.53 | 0.57% | 0.05% | It is mainly due to the increase in the investment income of the company to the associated enterprises in this period. |
| Fix assets | 2,229,553,866.96 | 13.76% | 2,303,122,699.92 | 15.16% | -1.40% | It is mainly due to the company's receipt of compensation for purchasing and storing land use rights in this period |
| Construction in progress | 66,522,492.77 | 0.41% | 98,469,862.45 | 0.65% | -0.24% | It is mainly due to the increase in fixed assets transferred by the company in this period. |
| Right-of-use assets | 36,646,135.10 | 0.23% | 45,367,918.31 | 0.30% | -0.07% | No major changes. |
| Short-term loans | 674,143,916.67 | 4.16% | 622,874,652.77 | 4.10% | 0.06% | It is mainly due to the increase in short-term loans borrowed by the company in this period. |
| Contract liability | 358,755,397.77 | 2.21% | 515,004,115.23 | 3.39% | -1.18% | It is mainly due to the decrease in the company's advance payment in this period. |
| Long-term loans | 148,000,000.00 | 0.91% | 168,000,000.00 | 1.11% | -0.20% | It is mainly due to the reclassification of the company's long-term loans to non-current liabilities due within one year. |
| Lease liability | 28,164,287.97 | 0.17% | 33,225,912.15 | 0.22% | -0.05% | It is mainly due to the rental fee paid by the company in this period. |
Foreign assets account for a relatively high proportion
□Applicable √Not applicable
(ii) Assets and liability measured by fair value
√Applicable □ Not applicable
In RMB
| Items | Amount at the beginning period | Changes of fair value gains/losses in this period | Accumulative changes of fair value reckoned into equity | Devaluation of withdrawing in the period | Amount of purchase in the period | Sales in the period | Other changes | Amount at end of the period |
| Financial assets | ||||||||
| 1.Trading financial assets (derivative financial assets excluded) | 17,997,086.19 | 39,663,502.48 | 57,660,588.67 | |||||
| 2. Receivable financing | 1,808,109,301.56 | -361,750,581.68 | 1,446,358,719.88 | |||||
| 3. Other non-current financial assets | 581,980,440.70 | 14,131,251.16 | 40,000,000.00 | 7,562,243.55 | 628,549,448.31 | |||
| Subtotal of financial assets | 2,408,086,828.45 | 53,794,753.64 | 40,000,000.00 | 7,562,243.55 | -361,750,581.68 | 2,132,568,756.86 | ||
| Above total | 2,408,086,828.45 | 53,794,753.64 | 40,000,000.00 | 7,562,243.55 | -361,750,581.68 | 2,132,568,756.86 | ||
| Financial liabilities | 12,304,272.41 | 29,657,252.37 | 41,961,524.78 | |||||
Other changes:
Other changes in receivables financing are due to the settlement of bills receivable in this period.Whether there have major changes on measurement attributes for main assets of the Company in report period ornot
□Yes √ No
(iii) Assets right restricted ended as reporting periodEnded as the reporting period, the Company has no major assets been closed down, detain, freeze or pledge andguarantee. As for other assets have restriction on rights found more in relevant content of “65. Assets with restrictedownership or use rights” in “VI. Note of consolidate financial statement” carried under Section X. Financial ReportVII. Investment analysis(i) Overall situation
√Applicable □ Not applicable
| Investment in the reporting (RMB) | Investment in the same period of last year ( RMB) | Changes |
| 200,000,000.00 | 50,000,000.00 | 300.00% |
(ii) The major equity investment obtained in the reporting period
√Applicable □ Not applicable
In RMB
| Name of invested | Principal business | Method of investment | Amount of investment | Shareholding ratio | Capital sources | Partners | Term of investment | Type of products | Status as of the balance sheet date | Expected return | Current investment profit and loss | Whether involved in a lawsuit(Y/N) | Date of disclosure (if applicable ) | Index of disclosure (if applicable ) |
| Changhong Group Sichuan Shenwan Hongyuan Strategic New Industry Parent Fund Partnership (Limited Partnership) | Engagement in equity investment, investment management, asset management and other activities with private equity funds | Newly established | 200,000,000.00 | 13.34% | The Company and its subsidiary Changhong Air Conditioning each invested RMB 100 million with their own funds | Sichuan Shenwan Hongyuan Changhong Equity Investment Management Co., Ltd., Shenwan Hongyuan Group Co., Ltd., Sichuan Changhong Electronic (Group) Co., Ltd., Sichuan Changhong Electric Co.,Ltd., Guangdong Changhong Electronics Co., Ltd., Sichuan Qiruike Technology Co., Ltd., Sichuan Changhong Power Supply Co., Ltd., Sichuan Changhong New Energy Technology Co., Ltd., Changhong Sanjie New Energy Co., Ltd., Sichuan Changhong Green Environmental Science and Technology Co., Ltd., Yibin Red-star Electronics Co., Ltd., Sichuan Changhong Digital Technology Co., Ltd., and Changhong Huayi Compressor Co.,Ltd. | 10 years | Not applicable | During the reporting period, the initial investment was RMB 40 million (including RMB 20 million from the Company and RMB 20 million from Changhong Air Conditioning Company). | Not applicable | 44,345.58 | No | 2022-07-13 | Juchao Website:http://Juchao Website (www.cninfo.com.cn)(Notice No.: 2023-053) |
| Total | -- | -- | 200,000,000.00 | -- | -- | -- | -- | -- | -- | 44,345.58 | -- | -- | -- |
(iii)The material non-equity investment in the reporting period
□ Applicable √Not applicable
(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
(1) Derivatives investment for hedging purposes during the reporting period
√ Applicable □ Not applicable
In RMB 10,000
| Type | Initial investment | Profit and loss of fair value change in the current period | Changes in the cumulative fair value included in the equity | Amount purchased in the reporting period | Amount sales in the reporting period | Investment amount at period-end | Ratio of investment amount at period-end in net assets of the Company at period-end |
| Forward foreign exchange contract | 299,655.67 | 1000.63 | 0 | 573,176.54 | 525,608.05 | 217,191.88 | 42.02% |
| Total | 299,655.67 | 1000.63 | 0 | 573,176.54 | 525,608.05 | 217,191.88 | 42.02% |
| Specific principle of the accounting policy and calculation for derivatives in the Period compared with last period in aspect of major changes | Not applicable | ||||||
| Description of actual profit and loss during the reporting period | During the reporting period, the Company confirmed the income from derivatives investment of RMB -13588.99 million. | ||||||
| Description of hedging effect | During the reporting period, the Company adhered to the principle of exchange rate risk neutrality, used forward foreign exchange contracts as hedging tools, and signed forward foreign exchange contracts according to the foreign exchange receipt amount predicted by sales and the target cost exchange rate. The delivery period matched with the predicted return amount, and the agreed delivery amount matched with the predicted return amount to avoid the risks caused by exchange rate fluctuations. The cash flow changes in the hedging tools during the reporting period can offset the cash flow changes in the hedged items caused by exchange rate fluctuations, which met the requirements of hedging effectiveness and achieved the hedging objectives. |
| Capital resource | Own fund |
| Risk analysis and controlling measures for derivatives holdings in the Period (including but not limited to market risk, liquidity risk, credit risks, operation risk and law risks etc.) | Risk analysis: 1. Market risk: domestic and international economic situation changes may lead to exchange rate fluctuations, forward foreign exchange transactions are under certain market risk. Forward foreign exchange business is aiming to reducing impact on corporate profits by foreign exchange settlement and sale prices, exchange rate fluctuations. The Company will follow up the exchange fluctuation, on the basis of target rate determined from the business, relying on the research of the foreign currency exchange rates, combined with prediction of consignments, and burdening ability to price variations due to exchange rate fluctuations, then determine the plan of forward foreign exchange contracts, and make dynamic management to the business, to ensure reasonable profit level. 2. Liquidity risk: all foreign exchange transactions are based on a reasonable estimate of the future import and export business, to meet the requirements of the trade authenticity. In addition, forward foreign exchange transactions are processed with bank credit, will not affect liquidity of company funds. 3. Bank default risk: if cooperative banks collapse within the contract time, the Company will not be able to transact the original foreign exchange contracts with contract price, which leads the risk of income uncertainty. So the Company chose five state-owned banks, the Chinese-funded banks in shareholding enterprise as Everbright Bank, Industrial Bank and the foreign-funded banks as UOB, OCBC, BEA etc. to conduct the trading of foreign exchange capital. These banks share a solid strength and management whose failure and the risk of loss may bring to the Company is very low. 4. Operational risk: improper operation of the person in charge of forward foreign exchange transactions may cause related risk also. The Company has formulated related management system which defines the operation process and responsibility to prevent and control risks. 5. The legal risks: unclear terms based in contract signed with banks for related transactions may lead legal risks when forward foreign exchange transactions are processing. The Company will strengthen legal review, and choose good bank to carry out this kind of business as to risk control. |
| Invested derivative products have changes in market price or fair value in the Period, as for analysis of the fair value of derivatives, disclosed specific applied methods and correlation assumption and parameter setting | The Company determines fair value in accordance with the Chapter VII “Determination of Fair Value” carried in the Accounting Standards for Business Enterprises No.22 - Recognition and Measurement of Financial Instruments. Fair-value is basically obtained according to prices offered by bank and other pricing services. While fair-value of derivatives is mainly obtained according to the balance between prices given by outstanding contracts and forward prices given by contracts signed during the reporting period with bank. The differences are identified as trading financial assets and liabilities. During the reporting period, forward foreign exchange contracts and losses of the Company is -13588.99 million yuan. |
| Lawsuit involved (if applicable) | Not applicable |
| Disclosure date for approval from the Board for investment | March 31,2022 |
| of derivatives (if applicable) | |
| Disclosure date for approval from board of shareholders for investment of derivatives (if applicable) | April 29,2022 |
| Special opinion on derivative investment and risk control by independent directors | Upon verification, the independent directors believe that during the reporting period, the company's forward foreign exchange fund trading business was strictly carried out in accordance with the provisions of the "Self regulatory Guidelines for Listed Companies on the Shenzhen Stock Exchange No. 1 - Standardized Operation of Main Board Listed Companies", the company's "Articles of Association", "Company Authorization Management Measures", "Company Forward Foreign Exchange Fund Trading Business Management System", and other relevant systems, Operate within the authorization scope of the shareholders' meeting and the board of directors, and do not conduct foreign exchange transactions solely for profit. All forward foreign exchange fund transactions are based on normal production and operation, relying on specific business operations, and aimed at preventing exchange rate risks. The forward foreign exchange fund trading business carried out by the company is conducive to preventing the exchange rate risks faced by the import and export business, and meets the company's operational development needs. There are no speculative operations, and there are no violations of relevant laws and regulations. Relevant businesses have performed corresponding decision-making procedures, and there are no situations that harm the interests of the company and all shareholders, especially small and medium-sized shareholders. |
(2）Derivative investments for speculation during the reporting period
□ Applicable √ Not applicable
The Company had no derivative investment in the reporting period.(v) Application of raised proceeds
□ Applicable √ Not applicable
The company has no use of raised funds during the reporting period.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
(i) Particular about main subsidiaries and stock-jointly companies net profit over 10%
In RMB
| Company name | Type | Main business | Register capital | Total assets | Net assets | Operating revenue | Operating profit | Net profit |
| Zhongke Meiling Cryogenic Technology Co., Ltd. | Subsidiary | Research and development, manufacturing and sales of ultra-low temperature freezer | 72,548,200 | 807,126,097.66 | 601,153,336.55 | 406,489,091.83 | 49,641,468.31 | 46,273,692.68 |
| Jiangxi Meiling Electric Appliance Co., Ltd. | Subsidiary | Manufacturing of refrigeration and freezer | 50,000,000 | 278,324,616.56 | 140,259,789.88 | 706,341,391.00 | 7,552,290.98 | 7,558,590.98 |
| Mianyang Meiling Refrigeration Co., Ltd. | Subsidiary | Manufacturing of refrigeration and freezer | 100,000,000 | 161,440,391.22 | 119,613,739.36 | 357,370,640.21 | -534,107.81 | -945,180.17 |
| Sichuan Changhong Air-conditioner Co., Ltd. | Subsidiary | R&D, manufacturing and domestic sales of air-conditioning | 850,000,000 | 3,775,310,274.39 | 1,224,343,143.33 | 6,921,479,747.99 | 128,387,504.63 | 139,143,595.12 |
| Zhongshan Changhong Electric Co., Ltd. | Subsidiary | R&D, manufacturing and foreign sales of air-conditioning | 334,000,000 | 1,621,626,963.00 | 183,642,460.63 | 3,079,395,653.40 | 106,761,877.14 | 101,756,266.88 |
| Hefei Meiling Group Holdings Limited | Subsidiary | Sales of white goods | 80,000,000 | 1,181,996,329.32 | -427,060,484.09 | 5,575,804,847.40 | -195,650,670.93 | -197,533,370.30 |
| Changhong Meiling Ridian Technology Co., Ltd. | Subsidiary | R&D, manufacturing and sales of kitchen and toilet products, small home appliances and water purifier | 83,000,000 | 273,283,685.46 | 137,631,717.96 | 237,989,059.17 | 1,256,975.53 | 623,419.57 |
| Hefei Changhong Meiling Life Appliances Co., Ltd. | Subsidiary | R&D and sales of household appliances, kitchen appliances and | 50,000,000 | 559,292,964.66 | 107,277,092.17 | 1,419,586,443.18 | 48,640,149.80 | 40,576,245.84 |
(ii) Subsidiary obtained and disposed in the period
√ Applicable □ Not applicable
| Company name | The method of obtaining and disposing subsidiaries during the report period | The influence to the whole production and performance |
| Jinan Xiangyou Electric Appliances Marketing Co., Ltd | Cancellation | Minor effect on the overall production and operation and performance of the company |
| Zhengzhou Meiling Electric Appliances Marketing Co., Ltd | Mergers & acquisition | Minor effect on the overall production and operation and performance of the company |
| Meiling Kadi Washing Machine Co., Ltd | Cancellation | Minor effect on the overall production and operation and performance of the company |
(3) Description of the holding company and stock-jointly companies
During the reporting period, subsidiary Sichuan Changhong Air-conditioner Co., Ltd. and Zhongshan ChanghongElectric Co., Ltd has larger increase in net profit from a year earlier, mainly due to the big increase in operationrevenue.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 2023, As domestic policies to support consumption and other related policies continue toincrease, the potential of domestic demand has been continuously released, residents' consumer confidence isexpected to be further restored, and "hustle and bustle" is returning in an orderly manner. First of all, from theperspective of industrial structure, considering the high penetration rate of mature household appliances in China,with the weakening of the real estate cycle attribute of the household appliances industry, the industry demanddepends more on the stock renewal, and the growth mainly depends on some emerging categories that improve thequality of life through technological innovation. Secondly, with the recovery and improvement of residents' incomelevel, the consumer market will gradually recover, which will have a positive impact on the domestic market, but itwill still take some time for residents' income to recover and consumption recovery will be gradual. Thirdly, withthe relaxation of real estate policy, the performance of home appliance industry, as a post-cycle industry of realestate, is expected to enter an improvement channel. In addition, the recovery of home decoration industry will alsodrive certain household appliance consumption. Compared with domestic sales, it is facing many pressures such ashigh global inflation, declining consumer demand, and orders being transferred to overseas factories in the overseasmarkets, and the home appliance export market may continue to be under pressure.
(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 refrigeratormarket has fully entered the stock market, and the product structure upgrade and the price structure upgrade broughtabout by the renewing process still exist, and the scale still maintains a steady development trend. From theperspective of the supply side, although raw material prices of bulk commodity have fallen, they are still operatingat 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.
At present, the domestic employment income is under pressure, and the lack of consumer confidence has agreat impact on the consumption growth of household appliances such as refrigerators and freezers. However, withthe implementation of multiple domestic consumption stimulus policies, in addition to the policy support at thenational level, measures to stimulate consumption of household appliances have been released one after another atthe local government level throughout the country; On the enterprise side, mainstream home appliance enterprisesalso actively responded to the policy call, and joined hands with channel enterprises such as e-commerce platformsand chain stores to promote sales by cutting profits for consumers; On the supply and demand side, economicdevelopment drives the development of commercial activities, the demand for refrigeration facilities in catering andretail industry is increasing, and the domestic market is expected to gradually warm up. AVC predicts that the retailsales in the refrigerator market will reach 30.46 million units in 2023, with a year-on-year increase of 1.9%, whileconsumers pursue the improvement of quality of life. The upgrading of market consumption structure brought bythe upgrading of refrigerators will promote the sustained price growth. It is estimated that the retail sales will reachRMB 97.4 billion, with a year-on-year increase of 5.2%.In terms of freezers, at present, the renewal cycle of freezer products is long, which can not stimulate thedemand for replacement; Thirdly, although the share of large-volume refrigerators is expanding rapidly with acertain degree of extrusion, for consumers, freezers and refrigerators are still on different tracks. In 2023, the retailvolume of the freezer market in China was 9.99 million units, with a year-on-year increase of 2.6%, and the retailvolume was RMB 13.3 billion, with a year-on-year increase of 3.6%. The products such as vertical freezers and icebars in subdivided tracks became a popular trend, which is expected to drive the freezer category to continue togrow in the future.On the export side, due to the weak demand brought by the previous overdraft, the recovery of overseasproduction capacity and the decline in consumer demand, plus the multiple pressures brought by high inflation,maritime fluctuations and exchange rate changes, the demand for refrigerators in overseas markets, especially inEurope and the United States, will probably fall back. From the perspective of export areas, although emergingcountries and some regions have sufficient growth potential, it is difficult to offset the high contraction of the broadermarket. It is noted that since RCEP (ASEAN Free Trade Area) came into effect in 2022, it has had a positive impacton the export of refrigerators and freezers in China. It is estimated that the sales of China exported to the other 14member countries of RCEP will continue to increase in 2023. But overall, it is expected that the overall export scaleof refrigerator cabinets will continue to be under pressure in 2023.
2. Air-conditioning industry
In 2023, for the air-conditioning industry, there are many favorable factors, such as consumption recovery,confidence recovery, real estate guaranteed delivery, and the release of relevant favorable policies, which willeffectively stimulate the resilience of the air-conditioning market, especially under the low base of three-year scale.AVC predicts that the air-conditioning retail market in China will reach a sale of 58.97 million units in 2023, witha year-on-year increase of 3.2%. Therefore, enterprises need to continuously expand and extend their channels,scenarios and user demand.
Affected by the international situation, geopolitics, economic downturn, serious inflation, climate and otherreasons, overseas market demand is sluggish, the market continues to decline, entering stock competition, volumeand price decline at the same time, and scale growth and profits are facing double challenges.
3.Washing machine
The washing machine industry is affected by factors such as low base in 2022 and comprehensive liberalizationof prevention and control, the suppressed demand in the washing machine industry is expected to be released, whichwill have a positive impact on the recovery of the domestic market of washing machines in 2023. In terms ofdemand, the consumer's washing demand is gradually developing to the washing and washing care demand, and thepartition washing and mini-washing products will show greater growth potential. In terms of product trends, thewashing capacity will further increase, and the ultra-thin embedded large-capacity products will continue to grow.Due to the slowdown of global economic recovery, consumer demand in overseas markets has not changedsignificantly, but due to the influence of low base, the overall market size will remain relatively stable.
4.Kitchen & bathroom, small appliance
Under the background that economic development has entered the "new normal", residents' consumption is ata low ebb, and saving desire is high, the competition in kitchen and bath appliance and small household appliancesmarket is becoming increasingly fierce, with health and intelligence becoming the important growth drivers, andemerging channels and sinking markets becoming places of strategic importance for brands. From the perspectiveof channel trends, China's home appliance market has entered an era of inventory, and offline channels are graduallyrecovering, and the retail sales of online channels have maintained a positive growth. Social e-commerce hasbecome an important emerging channel that cannot be ignored. Judging from the consumption trend, consumers'consumption concept has gradually changed from individual rationality to group rationality, and the best-sellingproducts are mostly multifunctional products with strong practicability, which are easy to store and save space.Meanwhile, consumers' willingness to pay a reasonable premium for higher-quality goods is quietly increasing, andhigh-quality products are embracing benefits. Judging from the product trend, the demand for traditional householdappliances has slowed down, and products representing health demand, integration demand and exquisite lazydemand are still on the rise.
The competition in kitchen appliances market is fierce, and some emerging categories are still with a very lowretention rate in China, and are gradually entering ordinary families. Enterprises need accurate positioning, andproduct-driven is the key to breakthrough. Meanwhile, cleaning appliances are still in the growth trend under theoverall decline of household appliances market, with diversified brands. Under the situation of rapid development
of categories, high cost performance will become the focus of users' attention.
5.Bio-medical
As the economic stabilization policy continues to be implemented , residents' consumption will reach a peak,the pace of economic recovery will progress steadily, and China's economy will be under pressure, but it will developsteadily for a long time. The medical device industry has a large market scale and numerous segments. Afterexperiencing equipment upgrades in grassroots medical institutions, the market demand for various types of medicaldevices has returned to normality, showing a steady development trend.
With the growth of China's per capita GDP and per capita disposable income and the trend of accelerated aging,the national expenditure on medical care will keep increasing. At the same time, with the development andconstruction of China's medical and health system, users at all levels of medical and health institutions, scientificresearch institutes, pharmaceutical enterprises and so on are increasing; More and more attention has been paid tobio-safety, which has stimulated the growing demand for potential biological sample storage; With the expansionof biopharmaceuticals, the scale of global refrigerated drugs has expanded, and the demand for cryogenic storageequipment has continued to grow; Under the trend of intelligence, the demand for equipment iterative upgrade isparticularly obvious; National policies focus on encouraging localization and substitution of medical devices. Thesedevelopment demands will continue to promote the continuous improvement of the industrial chain of the domesticmedical device industry, and also bring sustained growth momentum to the market segment of cryogenic storageequipment.(iii) Development strategy
1. Vision
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 throughreasonable commercial inventory turnover, and improve overall competitiveness with efficiency as the core, so asto achieve the steady development of the industry.(iv) Business plan for 2023
1. Business ideas
Focus on "one goal", closely follow "three main lines", implement "four management systems" andunswervingly deepen marketing transformation to carry out work for business ideas. The company will firmly takethe road of efficiency-oriented, product leading and benchmarking, and continue to deepen the marketingtransformation, further strengthen the value management system centered by retail price, the operation managementsystem centered by reasonable commercial inventory, the marketing management system centered by retail, and thecost control system centered by rigid budget, and continue to increase revenue, reduce costs and reduce fees in termsof research and production, so as to achieve the goal of continuous improvement and upgrading of operations.
(1) One goal
"One goal" is to achieve scale growth on the premise of profitability.
(2) Three main lines
Efficiency oriented: value-oriented, to achieve continuous improvement of business by improving efficiencyin four aspects: capital efficiency, channel efficiency, product efficiency and management efficiency.Capital efficiency: continuously focus on commercial inventory turnover, guarantee delivery timeliness,improve the capacity of the whole supply chain, and achieve capital efficiency through retail drive.Channel efficiency: focus on retail sales, promote quality products, improve product structure, make efforts ine-commerce channels, expand incremental channels, consolidate basic channels, upgrade chain channels, andcontinuously improve operating quality.Product efficiency: classify and manage products, continuously improve product structure and increase grossprofit margin by creating hot products, promoting high-quality products and optimizing the value chain of inefficientproducts and drainage products.
Management efficiency: the manufacturing end improves production efficiency by benchmarking, increasingdaily production, reducing labor and eliminating process obstacles; focus on multiple tariff, reduce fees and improveefficiency, promote cost control, and enhance gross profit.
Product leading: to create products with unique value that meet the needs of Meiling consumers.
Products: refrigerators adhere to the product strategy of "quality products" + "hot products" + "hot qualityproducts", with a product layout around "fresh, thin, large and embedded"; The freezers are based on "deep freezing,fresh freezing, defrosting and anti-bacteria"; The wall-mounted air conditioners are "all dust-free", and the cabinetair conditioners are with "far-reaching and near soft cooling, share in both living room and dining room"; Thewashing machines are "thin, big, simple and clean"; The kitchen and small household appliances focus on teaecological appliances and services, cleaning appliances, and gas water heaters to cultivate core competitiveness andbuild influential brands in the industry; The biomedical products are distributed around "life science and cold chain",and the competitiveness of products is continuously improved through "accurate positioning, enhanced layering,revitalized bases and customized channels" to promote the benign operation of products.
Technology: to improve the capacity building of core key technologies. Master the core technologyindependently to achieve industry leadership; Integrate and apply key technologies, and build the "Lingyun"industrial Internet platform based on the concept of "collaboration, sharing, symbiosis and empowerment" toprovide users with a good trading and service experience, while promoting the open sharing and deep integration ofresources among enterprises and promoting the coordinated development of the entire industrial chain; Focus onthe core of "Zhihuijia" intelligent strategy, persist in creating three major directions: product intelligent upgrade,service data transformation and scenario support to achieve industry advancement; Master the mechanism of hardcore science and technology to achieve industry breakthrough.
Benchmarking: by comprehensively benchmarking, comparing gaps, finding reasons, and fillingshortcomings, to drive the improvement in internal efficiency and terminal competitiveness. Focus on promotingbenchmarking such as product cost, production efficiency, share increase and average price increase, and improveorganizational performance, ability and efficiency.
(3) Firmly adhere to marketing transformation and implement four management systems
Deepen marketing transformation, adhere to the whole value chain operation under the industrial responsibilitysystem, carry out the general direction of strong management by headquarters and strong implementation bydivisions, and implement four management systems, namely, the value management system centered by retail price,the operation management system centered by reasonable commercial inventory, the marketing management systemcentered by retail, and the cost control system centered by rigid budget,.
2. Market strategy
(1) Refrigerator (freezer)
In the domestic market, promote customer-centered concept and provide consumers with products with uniquevalue. Promote quality products and create hot products. In terms of channels consolidate the basic channels bypromoting the refined management of core customers and expanding outlets, enhance the trend channels throughproduct layout and operational capabilities, improve the operating quality of chain channels by focusing on coreareas and cancelling inefficient stores, and focus on resources to rapidly expand ODM business.
In the overseas market, driven by efficiency, continuously improve the quality of overseas business. Focus onkey projects to improve R&D efficiency, improve product efficiency through internal and external collaboration andglobal collaboration, and improve market and customer efficiency by focusing on advantageous markets and keycustomers. Increase team and product investment in brand business, and continue to promote the construction ofoverseas independent brands.
(2) Air-conditioning
In the domestic market, insist on TOC and TOB dual drive. Continue to promote the digital transformation ofbasic channels, strategically expand TOP channels, intensively cultivate the three special programs of O2Obenchmark stores, continuously improve the channel operation quality, finely operate chain channels, and improvethe operation quality. Rely on the company's R&D capabilities and manufacturing capabilities, respond quickly andserve customers in all directions, and maximize the scale under controllable risks.
In overseas markets, continue to practice the concept of "profitable scale growth and profitable cash flowgrowth", adhere to brand priority, develop brand e-commerce and expand brand agency; focus on the core marketof stock and vigorously explore the market; improve product capabilities, expand customer channels, and at thesame time use efficiency improvement to reduce costs, improve quality and improve service capabilities.
(3)Washing machine
The washing machine business continues to take the industrial vision of "washing all stains and protecting the
whole family". With "ultra-thin embedding" as the brand difference, create a cleaning benefit point on this basis,which will meet the practical needs of consumers for ultra-thin space saving and the aesthetic needs of embeddedinstallation matching versatile decoration, thus better serving the middle class who pursue quality life. Aroundinnovative rubbing, washing, penetrating washing care technology, a new drum product is launched to providemachine washing clean as hand washing; The impeller breaks through the strong water flow technology with thecore technology of "small volume and large capacity, one-button intelligent washing". Serve the consumer groupsthat pursue cost performance, semi-automatic replacement and full automation. Meanwhile, further expand overseasbusiness and ODM/OEM customers. Complete the layout of mini washing and washing care product line andachieve a rapid breakthrough in the scale of washing machines.
(4) Kitchen and bath, small household appliances
Adhere to the principle of "focus, transformation, leap and win-win" in kitchen and bathroom and smallhousehold appliances industries. In terms of products, focus on the core products of tea ecology, heating and cleanelectrical appliances, strengthen R&D and technology implantation, create hot products in the industry, and expandmarket scale and industry position; In terms of marketing channels, consolidate basic channels, strengthen trendchannels, realize "walking on two legs", enhance brand channel ability and expand brand influence.
(5) Bio-medical
Unswervingly implement the development strategy of "based on relevant diversification in biomedical field",focus on the field of life sciences, deepen the construction of customer-oriented domestic and international channelsystem, focus on the comprehensive user strategy, deeply explore the needs and potential of users, improve servicelevel, and expand user coverage and product market share.
The above business plans and business objectives do not represent the listed company's profit forecast for 2023.Whether they can be realized depends on many factors such as changes in market conditions and the efforts of themanagement team. There is great uncertainty, which shall be especially noted by the investors.(V) Possible risks and countermeasures
Facing the objective factors such as more intense competition in the home appliance market, the livingenvironment of enterprises will be even worse. In 2023, the company will face risks such as declining industrydemand, fluctuations in exchange rates, and fluctuations in bulk material prices.
1. Industry demand declines
As domestic policies such as supporting consumption continue to increase, residents' consumer confidence isexpected to recover further in 2023. However, the traditional incremental dividend of household appliances hasended, and a new cycle of stock replacement has started. The market development has entered a slow lane, and therole of external environment and policy influence is relatively limited.
2. Exchange rate fluctuation risk
Affected by the international situation, the exchange rate fluctuates greatly. The Company will pay closeattention to exchange rate changes and operate steadily to reduce the impact of exchange rate changes.
3. Risk of price fluctuation of bulk materials
The main raw materials of the company's products are steel, copper, aluminum and plastics. If the prices ofbulk raw materials fluctuate greatly, the related costs of the company will also change accordingly, which will havea certain impact on the company's operating performance.
4. Influence of trade friction and geopolitics
The company pays close attention to the impact of uncertain factors such as international trade friction andgeopolitics on its global business.
In view of the above risks, combined with the industry situation in 2023 and the shortcomings in 2022, thecompany will focus on "one goal", closely follow "three main lines", solidly implement "four management systems"in 2023, unswervingly deepen marketing transformation to carry out work for business ideas, and make the layoutof products, technologies and markets in advance, so as to make the company's products transform to high-end andintelligent, enrich the product line and build a comprehensive household appliance enterprise.XII. In the report period, reception of research, communication and interview
√ Applicable □ Not applicable
| Time | Location | Way | Reception object | Type | Main contents of the discussion and the information provided | Basic situation index of investigation |
| April 13,2022 | Panorama network "investor relations interactive platform"（https://ir.p5w.net） | Other | Other | The shareholders and investors who participated in the interactive exchange at the 2021 annual business presentation of the Company | Holding a presentation on the 2021 annual business results and responding the questions that investors concerned | http://irm.cninfo.com.cn/ircs/company/companyDetail?stockcode=000521&orgId=gssz0000521 |
| June 9,2022 | #2 reference room of the company's multi-function center | Field research | Institute | Shenzhen Stock Exchange, Guoyuan Securities, Hua'an Securities, Panorama Network and other investors | Operation condition of the Company | http://irm.cninfo.com.cn/ircs/company/companyDetail?stockcode=000521&orgId=gssz0000521 |
| November 15,2022 | #2 reference room of the administrative center of the Company | Field research | Institute | Zhejiang Jing'an Investment Management Co., Ltd | Operation condition of the Company | http://irm.cninfo.com.cn/ircs/company/companyDetail?stockcode=000521&orgId=gssz0000521 |
IV. Corporate Governance
I. Corporate governance of the Company(i) Overview of the corporate governanceIn strict compliance with the Company Law, Securities Law, Governance Principles of Listed Company issued bythe CSRC, the Rules Governing the Listing of Stocks on Shenzhen Stock Exchange and Shenzhen Stock ExchangeSelf-Regulatory Guidelines No.1- Standardized Operation of the Listed Companies on main Board of SSE, theCompany 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 ofsupervisors and operation management as the major structure. The general meeting, board of directors, board ofsupervisors and operation management of the Company has definite terms of reference, which can ensure aneffective balance, scientific decision-making process and coordinative operation, laying firm foundation for makingdecisions 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 ofrelevant state laws and regulations, and regulatory documents relevant to governance of listed companies issued byChina Securities Regulatory Commission and Shenzhen Stock Exchange.
During the reporting period, the company revised and promulgated the Articles of Association, Rules ofProcedure for the General Meeting of Shareholders, Rules of Procedure of the Board of Directors and Rules ofProcedure for the Board of Supervisors, which further improved the standard operation and governance level of theCompany. The overall situation of corporate governance meets the requirements of relevant national laws andregulations, and regulatory documents on corporate governance of listed companies issued by China SecuritiesRegulatory Commission and Shenzhen Stock Exchange.
1. Shareholders and general meeting
The Company standardized the procedures concerning convening, holding and voting of general meeting in strictcompliance with the Articles of Association and Rules of Procedure of General Meeting. All shareholders, especiallythe minority shareholders, were equally treated to ensure all shareholders shall rank equal status and can fullyexercise their right. During the reporting period, the Company convened shareholders general meetings. In additionto convening general meeting in forms of site conference, the Company offered convenience for shareholders topresent general meeting via network voting which was safe, economic and convenient. At the same time, all thematters submitted to the Company’s general meeting of shareholders should count the votes of the small and mediuminvestors separately, and the results of the vote count should be disclosed timely so as to effectively protect therights and interests of small and medium investors and ensure that all shareholders, especially the small and mediumshareholders, 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, controllingshareholder 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 theCompany’s policy-making and business activities beyond the general meeting of stockholders, no capital or assetsof the Company occupied by controlling shareholder and its affiliates either.
3. The directors and board of directors
Board Meeting are revoke and open in line with the regulation of Company Law and Article of Association strictly,voting and information disclosure procedures appliance with relevant rules.All directors of the company havecarried out the work in accordance with the Rules of Procedure for the Board of Directors and the IndependentDirector System, conscientiously attended the board meetings and the shareholders' meetings, exercised theirpowers in accordance with the law, performed their duties diligently, and actively participated in relevant trainingorganized by the Shenzhen Stock Exchange and Anhui Securities Regulatory Bureau, the Listed CompaniesAssociation of Anhui, and have been familiar with relevant laws and regulations. Independent directors strictly abideby the Guiding Opinions on Establishing an Independent Director System in Listed Companies, the IndependentDirector System and other regulations, in line with a serious, diligent and loyal working attitude, based on anindependent and prudent stand, actively participated in the company's decision-making, carefully considered variousproposals, issued prior approval and independent opinions on related transactions and major issues, fully exertedthe supervision and check and balance role of independent directors, and effectively safeguarded the interests of thecompany and all shareholders, especially the small and medium shareholders. The four special committees ofstrategy, remuneration and assessment, audit and nomination under the board of directors of the company have beenresponsible for the discussion, decision-making, supervision and evaluation of major work issues of the companyaccording to the corresponding working rules of each departmental committee, and quality played an important rolein 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 Articlesof Association, and the voting and information disclosure procedures of supervisors’ meeting complied with relevantrequirements. The tenth board of supervisors of the company has five supervisors, including two employeesupervisors, 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 Rulesof Procedure for the Board of Supervisors, supervise the decision-making procedures and resolutions of the boardof directors and the legal operation of the company, review the regular reports prepared by the board of directorsand put forward written review opinions, and effectively supervise and express independent opinions on thecompany's major events, related transactions, financial status, the legality and compliance of directors and seniorexecutives’ performance of duties by attending the general meeting of shareholders and the meeting of the board ofdirectors from the perspective of safeguarding the legitimate rights and interests of the company and shareholders.
5. The performance appraisal and incentive and constraint mechanism
According to the Articles of Association, the Board of Directors of the company will decide to appoint or
dismiss the president, secretary of the Board of Directors and other senior management personnel of the company,and decide on their remuneration, rewards and punishments; According to the nomination of the president, decideto appoint or dismiss senior management personnel such as the company's vice president and financial officer, anddecide on their remuneration, rewards and punishments. The performance evaluation of directors, supervisors,presidents and other senior management personnel shall be conducted by the Human Resources Department of thecompany on a daily basis, and by the Remuneration and Appraisal Committee of the company at the end of the year.The company has established and continuously improved fair and transparent performance evaluation standards andincentive and restraint mechanisms for directors, supervisors and senior management personnel. The appointmentof company managers is open and transparent, in line with the relevant provisions of laws and regulations.
6. The stakeholders
The Company fully respects and maintains the legitimate rights and interests of stakeholders; strengthencommunication and negotiation with each other, realizes the coordination and balance of interests for all partiesincluding society, shareholders, company and staff, pushes forward the sustainable, steady and harmoniousdevelopment of the Company together.In terms of safeguarding the interests of shareholders, the company treats allshareholders, especially the small and medium-sized shareholders equally, in strict accordance with relevantregulations, and ensures that all shareholders enjoy equal status and fully exercise their rights by regulating theconvening, holding and voting procedures of the general meeting of shareholders.In terms of maintaining employees' rights and interests, starting from the company's strategy and businessdevelopment, it has continuously promoted and improved talent mechanisms such as talent reserve, learning anddevelopment, career planning and guidance, whole-process performance management, and salary incentive system,regularly evaluated and continuously monitored employees' engagement, satisfaction level and corporate cultureevaluation index, continuously improved employees' concerns, given full play to employees' vitality, stimulatedemployees' potential, and realized employees' personal development goals while achieving organizational goals; Interms of safeguarding the interests of relevant parties, guided by the corporate values of "creating and sharingtogether", it has been committed to establishing a win-win cooperation model of common development and commongrowth with relevant parties, promoting and promoting two-way communication and information sharing based onthe principle of equality and mutual benefit in cooperation, and constantly exploring the optimization of cooperationmodels such as management, personnel, cost and efficiency.
7. About information disclosure and transparency
During the reporting period, the company strictly complied with relevant provisions of the Listing Rules ofShenzhen Stock Exchange and the company's Information Disclosure Management System, strengthened themanagement of information disclosure affairs, actively fulfilled its information disclosure obligations, anddesignated Securities Times, China Securities Journal, Hong Kong Commercial Daily and Juchao InformationWebsite（Juchao Website (www.cninfo.com.cn)）as the designated media for the company's informationdisclosure, implemented strict confidential procedures for material undisclosed inside information, and controlledthe scope of informed personnel. The company earnestly fulfilled its obligations to disclose relevant information ina 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
During the reporting period, the Company continued to well ensure investor relations management, deepencommunication and exchanges with investors, enhance investors' understanding and recognition of the company,and safeguard investors' legitimate rights and interests in accordance with the requirements of the Company'sInvestor Relations Management System and Reception and Promotion Work System. During the reporting period,the company communicated with investors through the "Hudongyi" platform of investor relations of Shenzhen StockExchange, fully listened to investors' opinions and suggestions, and earnestly protected the interests of small andmedium-sized investors; well ensured answering and replying investors' visits and calls, as well as receiving andreplying faxes and e-mails, and treated media reports with caution; In order to help investors further understand thecompany's operating performance and financial condition, the company organized the 2021 online performancebriefing and achieved good results, which helped investors to understand the listed companies morecomprehensively and enhanced the transparency of the company; It held the Anhui Investor Service Week ofShenzhen Stock Exchange - Entering the Listed Companies, which further broadened the communication channelsof investors, earnestly safeguarded the legitimate rights and interests of investors, and constantly promoted andimproved the management level of investor relations in the company.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 byCSRC
□Yes √ No
There are no significant differences between the actual state of corporate governance and laws, administrativeregulations and the provision with governance concerned for listed companies issued by CSRCII. Independence of the Company relative to controlling shareholder and the actual controller in ensuringthe Company’s assets, personnel, finance, organization and businessesThe Company totally separated in business, personnel, assets, institutions and financial aspects from SichuanChanghong (controlling shareholder) and actual controller State-owned Assets Supervision & AdministrationCommission of Mianyang Municipality, with independent business accounting, responsibility and risk andindependent business operation capability.
1. The business: the Company has an independent and complete business as well as operation ability, withspecialized procurement, production, technology, marketing, management, human resources and other departments.We autonomously manage and operate business on our own. While the management staff are independent fromcontrolling shareholders and their subordinate enterprises. The Company is free from interference by controllingshareholders 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 ofany except directors, supervisors in the controlling shareholder and its subordinate enterprises.
3. Assets: the Company owns places of production and management independent from its controlling shareholder,owns complete assets structure, independent production system, auxiliary production systems and supportingfacilities, land use rights, ownership of houses and other assets, and independent purchase and sales system. Noassets occupied by controlling shareholders and other affiliates.
4. Institutions: the Company established organization completely independent from controlling shareholders; thegeneral meeting, board of directors, board of supervisors and the internal organization are capable of takingindependent action, with no controlling shareholder intervention of corporation's decision-making behavior. TheCompany strengthen the power restriction system via general meeting, the Board, supervisory committee,independent directors and vary committees, formulated an effective structure for corporate governance.
5. Financial aspects: the Company set up independent financial management, and independent accounting systemand financial management system, independently setting up banking account and tax declaration.
III. Horizontal competition
□ Applicable √ Not applicable
IV. In the report period, the Company held annual shareholders’ general meeting and extraordinaryshareholders’ general meeting(i) Annual Shareholders’ General Meeting in the report period
| Session of meeting | Type | Ratio of investor participation | Date | Date of disclosure | Index of disclosure |
| First Extraordinary General Meeting of 2022 | Extraordinary General Meeting | 6.0286% | January 5,2022 | January 6,2022 | www.cninfo.com.cn( Announcement No.:2022-002） |
| AGM of 2021 | AGM | 31.9056% | April 28,2022 | April 29,2022 | www.cninfo.com.cn( Announcement No.:2022-033） |
| Second Extraordinary General Meeting of 2022 | Extraordinary General Meeting | 31.9478% | January 29,2022 | June 30,2022 | www.cninfo.com.cn( Announcement No.:2022-049） |
| Third Extraordinary General Meeting of 2022 | Extraordinary General Meeting | 31.9483% | August 19,2022 | August 20,2022 | www.cninfo.com.cn( Announcement No.:2022-066） |
| Fourth Extraordinary General Meeting of 2022 | Extraordinary General Meeting | 31.7693% | December 22,2022 | December 23,2022 | www.cninfo.com.cn( Announcement No.:2022-100） |
(ii) Request for extraordinary general meeting by preferred stockholders whose voting rights restore
□ Applicable √ Not applicable
V. Directors, supervisors and senior officers(i) Basic information
| Name | Title | Working status | Sex | Age | Start dated of office term | End date of office term | Shares held at period-begin (share) | Number of shares increased in this period (share) | Number of shares decreased in this period (share) | Other changes (share) | Shares held at period-end (share) | Reasons for increase or decrease of shares |
| Wu Dinggang | Chairman | In office | Male | 50 | July 3,2014 | October 12,2023 | 570,500 | 0 | 0 | 0 | 570,500 | Not applicable |
| Zhong Ming | Director, President | In office | Male | 50 | December 30,2013 | October 12,2023 | 236,175 | 0 | 0 | 0 | 236,175 | Not applicable |
| Yong Fengshan | Director | In office | Male | 54 | September 12,2017 | October 12,2023 | 0 | 0 | 0 | 0 | 0 | Not applicable |
| Kou Huameng | Director, Deputy president | In office | Male | 53 | July 3,2014 | October 12,2023 | 0 | 0 | 0 | 0 | 0 | Not applicable |
| Hu Zhaogui | Director, Deputy president | In office | Male | 49 | June 21,2018 | October 12,2023 | 178,050 | 0 | 0 | 0 | 178,050 | Not applicable |
| Zhao Qilin | Director | In office | Male | 47 | December 23,2021 | October 12,2023 | 0 | 0 | 0 | 0 | 0 | Not applicable |
| Hong yuanjia | Independent director | In office | Male | 47 | October 12,2020 | October 12,2023 | 0 | 0 | 0 | 0 | 0 | Not applicable |
| Mou Wen | Independent director | In office | Female | 56 | October 12,2020 | October 12,2023 | 0 | 0 | 0 | 0 | 0 | Not applicable |
| Zhao Gang | Independent director | In office | Female | 44 | October 12,2020 | October 12,2023 | 0 | 0 | 0 | 0 | 0 | Not applicable |
| Shao Min | Chairman of Supervisory | In office | Male | 40 | September 12,2017 | October 12,2023 | 0 | 0 | 0 | 0 | 0 | Not applicable |
| He Xintan | Supervisor | In office | Male | 42 | September 12,2017 | October 12,2023 | 0 | 0 | 0 | 0 | 0 | Not applicable |
| Huang Hong | Supervisor | In office | Female | 52 | September 12,2017 | October 12,2023 | 0 | 0 | 0 | 0 | 0 | Not applicable |
| Ji Ge | Staff supervisor | In office | Female | 41 | December 25,2017 | October 12,2023 | 0 | 0 | 0 | 0 | 0 | Not applicable |
| Sun Hongying | Staff supervisor | In office | Female | 51 | March 30,2021 | October 12,2023 | 0 | 0 | 0 | 0 | 0 | Not applicable |
| Liu Hongwei | Executive deputy president | In office | Male | 59 | June 20,2011 | October 12,2023 | 1,689,893 | 0 | 0 | 0 | 1,689,893 | Not applicable |
| Huang Danian | Deputy president | In office | Male | 53 | September 12,2017 | October 12,2023 | 356,450 | 0 | 0 | 0 | 356,450 | Not applicable |
| Tang Youdao | Deputy president | In office | Male | 52 | March 29,2021 | October 12,2023 | 0 | 0 | 0 | 0 | 0 | Not applicable |
| Pang Haitao | CFO (person in charge of finance) | In office | Male | 47 | October 25,2017 | October 12,2023 | 0 | 0 | 0 | 0 | 0 | Not applicable |
| Li Xia | Secretary of the Board | In office | Female | 42 | May 22,2009 | October 12,2023 | 552,800 | 0 | 138,200 | 0 | 414,600 | Reduce holdings due to the need for own funds |
| Total | -- | -- | -- | -- | -- | -- | 3,583,868 | 0 | 138,200 | 0 | 3,445,668 | -- |
1. During the reporting period, whether there was any departure of directors and supervisors and dismissalof Senior Officers
□ Yes√No
2. Changes of directors, supervisors and senior executives
□Applicable√Not applicable
(ii) Post-holding
1. Professional background, major working experience and present main responsibilities in Company ofdirectors, supervisors and senior executive at the present
(1) Wu Dinggang, male, the Han nationality from Suining, Sichuan Province, was born in March 1973, Member ofCPC, owns bachelor degree, graduate from Tianjin University of Commerce China (Tianjin University ofCommerce now), major in refrigeration equipment and cryogenic technique. He served successively as GM ofSuining Sale Branch and Chengdu Sales Branch of Sichuan Changhong Electric Co., LTD, director of Sichuan andChongqing Marketing Management Department of Sichuan Changhong Electric Co., LTD, deputy GM ofChanghong Electronics (China) Marketing Co., GM of market planning center of Changhong Multimedia Industry,director and GM of Le-Jia-Yi Chain Management Co., Ltd., ZhongkeMeiling Cryogenic Technology Co., Ltd.director and GM of Sichuan Changong Air Conditioner Co., Ltd and deputy president, president, deputy chairmanand Party Secretary of the Company. Currently he serves as director, vice GM of Sichuan Changhong Electric Co.,Ltd., chairman of the Company; Chairman of Zhongshan Changhong Electric Co., LTD; Chairman of SichuanChanghong Air-conditioner Co., Ltd. and Chairman of ZhongkeMeiling Cryogenic Technology Co., Ltd.
(2) Zhong Ming, male, the Han nationality from Meishan, Sichuan Province, was born in November 1972, memberof CPC, a senior engineer, doctoral degree, EMBA degree from University of Science and Technology of China,PhD degree in Engineering Thermophysics. He successively served as deputy director of research institution ofSichuan Changhong Air-conditioner Co., Ltd., deputy GM of Sichuan Changhong Air-conditioner Co., Ltd. andtechnical director of household appliance group of Sichuan Changhong Electric Co., Ltd. He serves as directorPresident and Party Secretary of the Company currently , Chairman of Zhongshan MeilingWulian Technology Co.,Ltd., Director of Sichuang Changhong Air-conditioning Co., Ltd., and Director of Zhongke Meiling LowTemperature Technology Co., Ltd.
(3) Yong Fengshan, male, Han nationality, was born in Ding yuan, Anhui in June 1968, a member of the CommunistParty of China, a senior accountant, and a master degree holder. He ever took the posts of the director of financedepartment of Hefei Cable Factory, the director of finance division and the deputy chief accountant of Hefei MeilingCo., Ltd., the deputy general manager and chief accountant of Hefei Meiling Group Holding Co., Ltd., the secretaryof the party committee and the GM and the president of Hefei Industrial Investment Holdings Co., Ltd.Currently heserves 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 TechnologyInnovation 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 GroupCo., Ltd.and the director of the Company.
(4)Zhao Qilin, male, Han nationality, born in September 1975, graduated from Southwestern University of Financeand 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 investmentmanagement department, and securities affairs representative of Sichuan Changhong Electric Co., Ltd.; financialmanager of Sichuan Changhong Innovation Investment Co., Ltd.; chief financial officer and and joint companysecretary 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 ChanghongElectric Co., Ltd., director of Anjian Holdings Co., Ltd.,director of Sichuan Changhong Innovation Investment Co.,Ltd.. and the director of the Company.
(5) Kou Huameng, male, the Han nationality from Yanting, Sichuan Province, was born in February 1970, Memberof CPC, master degree candidate, EMBA graduate from UESTC. He served successively as deputy director ofproduction office of Sichuan Changhong Electric Co., LTD, director of Guangxi Marketing management Committee,director of Fujian-Jiangxi Marketing Management, General Manager of Changhong Audiovisual Company anddirector and GM of Guangdong Changhong Digital Technology Co., Ltd.; Sichuan Changhong Electric Co., Ltd,director of development management department of Sichuan Changhong Electric Co., Ltd., and director ofChanghongHuayi 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 Partyof China, holds a master’s degree, graduated from Chongqing University as a master of business administration. Hehas 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 managerof the domestic marketing division. He is currently the director and vice president of the Company and the generalmanager of Sichuan Changhong Air Conditioner Co., Ltd.
(7) Hong yuanjia, male, Han nationality, born in February 1975, Shantou, Guangdong, holds a master degree,graduated from Shanghai University of Finance and Economics majoring in international business management,and is Fudan University MPAcc (Master of Accounting), CPA, International Accountant (AIA), intermediateaccountant, and intermediate economist. He once served as the foreign currency payable supervisor and investmentsupervisor of China Eastern Airlines Co., Ltd., the deputy manager of the financial department of the ShanghaiRepresentative Office of SanchengHongji (Hong Kong) Co., Ltd., the accounting manager of General ElectricLighting Co., Ltd., the accounting manager of General Electric Industrial Supply Co., Ltd., and Chief FinancialOfficer of Lingji Electronics (General Electrical Industry System Power Supply). He is currently the Chief FinancialOfficer of Asia Pacific Region of Yiluo Technology (Shanghai) Co., Ltd. and an independent director of theCompany.
(8) Mou Wen, female, Han nationality, born in September 1965, Hengshan, Hunan, holds a master's degree, anaccountant, and holds a master's degree in business management from Sichuan University. She previously servedas a lecturer in the School of Business Administration of Sichuan University, an Associate Professor of Accounting
in the School of Business Administration of Sichuan University, an independent director of Tibet MineralDevelopment 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 InvestmentDecision Advisory Committee of Sichuan Chuanjiao Road and Bridge Co., Ltd., and financial consultant of SichuanDaka Electric Co., Ltd., etc. She is currently Associate Professor and Master Supervisor of Business School ofSichuan 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 MineralDevelopment 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 CommunistParty of China, holds a doctoral degree, graduated from the University of Science and Technology of China majoringin power engineering and thermophysics. He once served as a post doctorate and an associate professor in theDepartment of Mechanics and Mechanical Engineering of the University of Science and Technology of China, aprofessor of orbital systems in the Department of Electronic Science and Technology, a special researcher forforeigners in the Japan Society for the Promotion of Science, School of Engineering, Kyushu University, Japan, anda senior research scholar in the Department of Mechanical Engineering at the University of Washington. He iscurrently the executive director, professor and doctoral supervisor of the Department of Electronic Science andTechnology of the University of Science and Technology of China, the deputy director of the Anhui Life ResourcesConservation and Artificial Organ Engineering Technology Research Center, a part-time professor of theDepartment of Mechanical Engineering of the University of Washington, and an independent director of theCompany.
(10) Shao Min, male, Han nationality, was born in Linyi, Shandong in March 1983, and earned a bachelor’s degreein accounting major from Xi’an Jiaotong University. He joined in work in July 2004, and ever served as theaccountant and finance manager of the branch office of Sichuan Changhong Electric Co., Ltd., the financial directorof finance department, the project manager of asset management department, manager of Assets Operation Divisionof Assets Management Dept, deputy director and director of the Assets Management Dept.of Sichuan ChanghongElectric Co., Ltd. He currently serves as the head of Capital Operation Dept.of Sichuan Changhong Electric Co.,Ltd., director of ChanghongHuayi Compressor Co., Ltd., director of Sichuan Changhong New Energy TechnologyCo., Ltd., and the chairman of the Board of Supervisors of the Company.
(11) He Xintan, male, Han nationality, was born in Xiayi, Henan in April 1980, a member of the Communist Partyof China, an economist, and earned a master’s degree in management science and engineering from Xi’an JiaotongUniversity. He joined in work in July 2002, He has successively served as the Operation Management Director ofthe Operation Management Department of Sichuan Changhong Electric Appliance Co., Ltd., the Manager of theGeneral Management Department, the Director of the Development Management Department of SichuanChanghong Electric Appliance Co., Ltd., the Director of Changhong Huayi Compressor Co., Ltd., and the GeneralManager Assistant of Sichuan Changhong Electric Appliance Co., Ltd., and currently holds positions such as theGeneral Manager of Zhongjiu Flash Medical Technology Co., Ltd., and the Supervisor of the Company.
(12) Huang Hong, female, Han nationality, was born in Shehong, Sichuan in June 1970, a member of the CommunistParty 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. Hecurrently serves as the deputy director of auditing department and thedeputy director of labor union audit committeeof Sichuan Changhong Electric Co., Ltd., and a supervisor of the Company.
(13) Ji Ge, female, Han nationality, was born in Nanyang, Henan Province in January 1982, a member of theCommunist Party of China, and earned a bachelor’s degree in law from Hunan University and a master’s degreefrom Anhui University. She joined Hefei Meiling Co., Ltd. in July 2005 and once served as the legal specialist oflegal department, the sponsor of legal affairs, and the intellectual property director of the legal department of theCompany. She currently serves as head of director office and risk control compliance dept and staff supervisor ofthe Company.
(14)Sun Hongying, female, Han nationality, native of Tongcheng, Anhui, born in March 1972, member of theCommunist Party of China, master degree, intermediate accountant, graduated from Hefei University of Technologywith a major in accounting. She successively served as deputy director of the cost center, director of the financialdepartment of the refrigerator business division, and deputy director of the financial management department ofChanghong Meiling Co., Ltd.. She currently serves as employee supervisor and deputy director of the refrigeratorand freezer division of the finance and economics department of the Company.
(15) Liu Hongwei, Male, Chinese American, bored in May 1963, Doctor of Applied Mechanics from LehighUniversity, graduate from department of mechanical engineering, Tsinghua University. He served successively inKulicke and Soffa Industries, Pennsylvania; Tessera Technology Corporation, Califonia; serves technical andmanagement post in Intel Corporation in Silicon Velleg. He joints the Hefei Meiling Co., Ltd. in 2007, now heserves as executive deputy president of the Company.
(16) Huang Danian, male, Han nationality, was born in Huaining, Anhui in November 1969, a member of theCommunist Party of China, a senior engineer, and a master degree holder. He once served as the logistics directorand the deputy general manager, the director of the human resources department, the director of the comprehensiveplanning department, head of budget management dept. , and the assistant to the general manager of Sales Companyof Hefei Meiling Co., Ltd. He is now the vice president of the Company.
(17)Tang Youdao, male, Han nationality, was born in Xuancheng, Anhui in July 1970, a undergraduate degree andgraduated from Wuhan University of Technology, majoring in industrial management engineering. He hold jobssuccessively as overseas marketing manager, head of marketing dept., head of overseas marketing dept. and generalmanager of overseas business division under the name of Hefei Meiling Co., Ltd. Currently vice president andgeneral manager of overseas refrigerator/washing machine division of the Company.
(18) Pang Haitao, male, Han nationality, was born in Qionghai, Hainan in May 1975, a member of the CommunistParty of China, a senior accountant, a senior political engineer, and a bachelor degree holder, and earned the EMBAdegree from Jiangxi University of Finance and Economics. He used to be a member of the finance department, thedirector of related transactions and the director of capital operations of Sichuan Changhong Electric Co., Ltd., thechief of finance office of Guangdong Changhong Electronics Co., Ltd., the director ofgeneral ledger, the head ofgeneral management office, and the head of general ledger management office of the finance department of SichuanChanghong 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. Currentlyhe 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 ofCPC and Intermediate Accountant with Master Degree. She graduated from Accounting Department of SichuanUniversity Business and Management School. She ever was Project Manager in Financing & Acquisition Office ofAsset 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 ofthe Board, deputy secretary of the Party, secretary of discipline inspection commission and general counselof theCompany recently.
2. Post-holding in shareholder’s unit
√ Applicable □ Not applicable
| Name | Shareholder’s unit | Title | Start date of office term | End date of office term | Drawing remuneration and allowance from shareholder’s unit (Y/N) |
| Wu Dinggang | Sichuan Changhong Electric Co., Ltd. | Director | 2020.06.30 | 2023.06.29 | N |
| Deputy GM | 2019.01.11 | 2023.06.29 | Y | ||
| Yong Fengshan | Hefei Industry Investment Holding (Group) Co., Ltd. | Party Secretary, Chairman | 2015.02 | - | Y |
| ZhaiQilin | Sichuan Changhong Electric Co., Ltd. | Secretary of the Board of Directors | 2020.12.16 | 2023.06.29 | Y |
| General counsel | 2022.02.14 | 2023.06.29 | N | ||
| Chief Compliance Office | 2022.11.25 | 2023.06.29 | N | ||
| Post-holding in shareholder’s unit | N/A | ||||
3. Post-holding in other unit
√ Applicable □ Not applicable
| Name | Other unit | Title | Start date of office term | End date of office term | Drawing remuneration and allowance from other unit (Y/N) |
| Wu Dinggang | Sichuan Zhiyijia Network Technology Co., Ltd. | Chairman | 2021.01.25 | - | N |
| Lejiayi Chain Management Co., Ltd. | Chairman | 2019.04.25 | - | N | |
| Sichuan Kuaiyidian Electrical Service Chain Co., Ltd. | Chairman | 2019.06.10 | - | N | |
| Mianyang Kuaiyidian Electric Appliance Service Chain Co., Ltd. | Chairman | 2022.11.04 | - | N | |
| Zhong Ming | Sichuan Kuaiyidian Electric Appliance Service Chain Co., Ltd. | DDirector | 2022.03.15 | - | N |
| Yong Fengshan | Hefei Venture Capital Guidance Fund Co., Ltd. | Chairman | 2015.04 | - | N |
| CAS (Hefei) Technical Innovation Engineering Institute Co., Ltd. | Chairman | 2015.04 | 2022.11 | N | |
| Hefei State-owned Assets Holding Co., Ltd. | Chairman | 2015.04 | - | N | |
| Hefei Industry Investment Holding Co., Ltd. | Chairman, General Manager, Secretary of the Party Committee | 2008.06 | - | N | |
| Anhui Jianghuai Automobile Group Co., Ltd. | Director | 2018.07.20 | 2025.05.30 | N | |
| Hefei Kechuang Group Co., Ltd. | Chairman | 2021.05 | - | N | |
| Hefei Talent Development Group Co., Ltd. | Chairman | 2022.01 | - | N | |
| Zhao Qilin | Sichuan Changhong Innovation Investment Co., | Director | 2021.01.21 | - | N |
| Ltd. | |||||
| WIDEMIRACLELIMITED | Director | 2014.07.14 | - | N | |
| Ganghong Industrial Co., Ltd. | Director | 2013.06.18 | - | N | |
| SUFFICIENTVALUEGROUPLIMITED | Director | 2013.06.18 | - | N | |
| ChanghongJiahua (Hong Kong) Information Products Co., Ltd. | Director | 2021.01.08 | - | N | |
| Anjian Holdings Co., Ltd. | Director | 2012.01.19 | - | N | |
| Guangzhou Huanwang Technology Co., Ltd. | Director | 2022.04.23 | N | ||
| Changhong Jiahua Holdings Co., Ltd. | Director | 2023.03.17 | - | N | |
| Hu Zhaogui | Lejiayi Chain Management Co., Ltd. | Director | 2018.01.23 | - | N |
| Sichuan Zhiyijia Network Technology Co., Ltd. | Director | 2019.07.25 | - | N | |
| Hong Yuan Ground Energy Heat Tech. Co., Ltd. | Vice Chairman | 2017.12.27 | - | N | |
| Sichuan TianyouGuigu Technology Co., Ltd. | Director | 2018.01.16 | - | N | |
| Chengdu Guigu Environmental Tech. Co., Ltd. | Director | 2018.06.30 | - | N | |
| Hong Yuanjia | Yiluo Technology( Shanghai) Co., Ltd. | CFO of Asia pacific | 2014.06 | - | Y |
| Mou Wen | Business School of Sichuan University | Associate professor, master tutor | 1995.02 | - | Y |
| MianyangFulin Precision Machinery Co., Ltd. | Independent director | 2017.06.23 | 2023.06.30 | Y | |
| 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 | |
| Zhao Gang | University of Science and Technology of China | Department Executive Director, Professor, Doctoral Supervisor | 2011.04 | - | Y |
| Shao Min | ChanghongHuayi Compressor Co., Ltd. | Director | 2021.02.25 | 2024.05.12 | N |
| Sichuan Changhong New Energy Technology Co., Ltd. | Director | 2018.05.10 | 2024.12.19 | N | |
| Sichuan Changhong Gerun Environmental protection Technology Co., Ltd. | Director | 2018.01.01 | 2025.02.09 | N | |
| Sichuan Changhong Electronics Holding Group Co., Ltd. | Head of Capital Operation Dept. | 2021.03.01 | - | Y | |
| He Xintan | Zhongjiu Flash Medical Technology Co., Ltd | president | 2023.03.21 | - | Y |
| Huang Hong | Sichuan Changhong Electronics Holding Group Co., Ltd. | Deputy Director of Audit Department | 2011.09.16 | - | Y |
| Pang Haitao | Hefei Xingmei Asset Management Co., Ltd. | Director | 2018.02.05 | - | N |
| Post-holding in other unit | N/A | ||||
4. Punishment of securities regulatory authority in recent three years to the company’s current andoutgoing directors, supervisors and senior management during the reporting period
□ Applicable √ Not applicable
(iii) Remuneration of directors, supervisors and senior executives
1. Decision-making, determine basis and actually payment of remuneration for directors, supervisors andsenior executives
(1) Procedure for deciding remunerations of directors, supervisors and senior managementImplemented in line with laws, regulations and relevant rules of “Company Law”, “Article of Association” and“Enforcement Regulation of Remuneration and Evaluation Committee of the Board”, including:
Allowance plan of independent directors are implemented after deliberated in the Board and approved inShareholders’ General Meeting. Other directors and non-staff supervisors except independent directors are receivedno remuneration from the Company.
Remuneration of senior executives are deliberated and approved by the Board according to remuneration evaluationplan together with opinions of Remuneration and Evaluation Committee.
The remuneration appraisal and payment for directors and senior executive of the Company for Current Year willdisclose in the Annual Report after review without objection from Remuneration & Appraisal Committee of theBoard and submit to the BOD for Current Year.
(2) Bases on which remunerations of directors, supervisors and senior management are decidedAccording to the company's basic salary system, combined with the industry salary level and salary orientation,following the salary management concept of "post value reflected and performance-oriented", giving full play tothe incentive function of salary, closely combining employee compensation with the company's overall performance,according to the company's performance management rules, the annual performance evaluation on the work ofsenior management personnel is carried out, and the performance salary is cashed according to the performanceevaluation results.
(3) Actual payment of remunerations of directors, supervisors and senior managementAllowance of the independent directors are paid by the standards approved in Annual Shareholders’ GeneralMeeting, other director, who serves as senior executive at the same time, and non-staff supervisors exceptindependent directors did not received remuneration from the Company; remunerations for senior executives of theCompany 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 2022, actually 13person receiving remuneration from the Company, 2 staff supervisors are received their remuneration by actualpositions (non-supervisor post); furthermore, 3 independent directors are received the allowance monthly from theCompany; the Company will pay remuneration to senior executives in line with the performance appraisal bymonthly, quarterly and annual.During the reporting period, the Company has established the executive compensation and performancemanagement program for the senior management of 2022 in accordance with the main scope, the responsibilities,the importance of the management positions of the senior management, and the compensation level of other relevantcompany and position, the program includes but not limited to the company's key performance indicator (KPI) andperformance evaluation criteria, procedures and major evaluation system; the major programs of the reward andpunishment; review the performance of duties of the company's senior management and conduct the annualperformance appraisal.
2. Remuneration for directors, supervisors and senior executives in reporting period
In RMB 10,000
| Name | Title | Sex | Age | Post status | Total remuneration obtained from the Company (before taxes) | Whether remuneration obtained from related party of the Company |
| Wu Dinggang | Chairman | Male | 50 | In Office | 0 | Ye |
| Zhong Ming | Director, President | Male | 50 | In Office | 70.43 | Yes |
| Yong Fengshan | Director | Male | 54 | In Office | 0 | Yes |
| Kou Huameng | Director, Deputy president | Male | 53 | In Office | 43.37 | No |
| Hu Zhaogui | Director, Deputy president | Male | 49 | In Office | 150.24 | No |
| Zhao Qilin | Director | Male | 47 | In Office | 0 | Yes |
| Hong yuanjia | Independent director | Male | 47 | In Office | 11.90 | No |
| Mou Wen | Independent director | Female | 56 | In Office | 11.90 | No |
| Zhao Gang | Independent director | Male | 44 | In Office | 11.90 | No |
| Shao Min | Chairman of Supervisory | Male | 40 | In Office | 0 | Yes |
| He Xintan | Supervisor | Male | 42 | In Office | 0 | Yes |
| Huang Hong | Supervisor | Female | 52 | In Office | 0 | Yes |
| Ji Ge | Staff supervisor | Female | 41 | In Office | 40.84 | No |
| Sun Hongying | Staff supervisor | Female | 51 | In Office | 46.08 | No |
| Liu Hongwei | Executive deputy president | Male | 59 | In Office | 102.75 | No |
| Huang Danian | Deputy president | Male | 53 | In Office | 50.55 | No |
| Tang Youdao | Deputy president | Male | 52 | In Office | 136.50 | No |
| Pang Haitao | CFO (person in charge of finance) | Male | 47 | In Office | 46.19 | No |
| Li Xia | Secretary of the Board | Female | 42 | In Office | 44.44 | No |
| Total | -- | -- | -- | -- | 767.09 | -- |
VI. Responsibility performance of directors during the reporting period(i) The board of directors during the reporting period
| Session of meeting | Date of meeting | Disclosure date | Meeting resolutions |
| The 16th session of 10thBOD | March 29,2022 | March 31,2022 | Totally 27 proposals including Report on Works of BOD for year of 2021, Annual Report of 2021 and Its Summary and Financial Statement Report for year of 2021 are deliberated and approved in the Meeting, for details, please refer to the "Resolution Notice of the 16th session of 10thBOD" (No. 2022-012) on the cninfo website (Juchao Website (www.cninfo.com.cn)). |
| The 17th session of 10thBOD | April 19,2022 | April 20,2022 | Totally 4 proposals including The Q1 Report of 2022, Provision for Credit Losses and Provision for Decline in Value of Inventories are deliberated and approved in the Meeting, for details, please refer to the "Resolution Notice of the 17th session of 10thBOD" (No. 2022-028) on the cninfo website (Juchao Website (www.cninfo.com.cn)). |
| The 18th session of 10thBOD | May 17,2022 | May 18,2022 | Totally 8 proposals including, The board of directors deliberated and passed the proposal on providing overseas loan with onshore guarantee to overseas holding subsidiaries, On the holding subsidiary to publicly issue shares to non-specific qualified investors and listing on the Beijing Stock Exchange and proposal on the company applying for the maximum credit line of RMB 400 million from the Hefei Branch of China Minsheng Bank Co., Ltd ., please refer to the "Resolution Notice of the 18th session of 10thBOD" (No. 2022-036) on the cninfo website (Juchao Website (www.cninfo.com.cn)). |
| The 19th session of 10thBOD | June 13,2022 | June 14,2022 | Totally 5 proposals including Amend Some Article of the Article of Association, Amend Some Articles of Rules of Procedure for Shareholders General Meeting are deliberated and approved in the Meeting, for details, please refer to the "Resolution Notice of the 19th session of 10thBOD" (No. 2022-042) on the cninfo website (Juchao Website (www.cninfo.com.cn)). |
| The 20th session of 10thBOD | July 11,2022 | July 13,2022 | Totally 1 proposals including Proposal on the company and its subsidiaries to participate in the establishment of industrial investment funds and related transactions are deliberated and approved in the Meeting, for details, please refer to the "Resolution Notice of the 20th session of 10thBOD" (No. 2022-051) on the cninfo website (Juchao Website (www.cninfo.com.cn)). |
| The 21st session of 10thBOD | August 2,2022 | August 3,2022 | Totally 4 proposals including Proposal on Approving Holding Subsidiaries to Publicly Issue Stocks to Unspecified Qualified Investors and Listing on the Beijing Stock Exchange" and "Proposal on Agreeing Holding Subsidiaries to Adjust Public Issuance of Stocks to Unspecified Qualified Investors and Listing on the Beijing Stock Exchange" are deliberated and approved by The Board of Directors in the Meeting, for details, please refer to the "Resolution Notice of the 21st session of 10thBOD" (No. 2022-056) on the cninfo website (Juchao Website (www.cninfo.com. cn)). |
| The 22nd session of 10thBOD | August 16,2022 | August 18,2022 | Totally 8 proposals including Semi-Annual Report (Full-text) of 2022 and its Summary, Provision for Credit Losses and Provision for Decline in Value of Inventories are deliberated and approved in the Meeting, for details, please refer to the "Resolution Notice of the 22ndth session of 10thBOD" (No. 2022-062) on the cninfo website (Juchao |
| Website (www.cninfo.com.cn)). | |||
| The 23rd session of 10thBOD | September 5,2022 | September 7,2022 | Totally 1 proposal including "Proposal on Issuing <Commitment on Trademark Licensing> to Holding Subsidiaries" is deliberated and approved by The Board of Directors in the Meeting, please refer to the "Resolution Notice of the 23rd session of 10thBOD" (No. 2022-068) on the cninfo website (Juchao Website (www.cninfo.com.cn)). |
| The 24th session of 10thBOD | September 7,2022 | September 8,2022 | Totally 1 proposal including "Proposal on the Company's Donation to the Luding Earthquake-stricken Area". is deliberated and approved by The Board of Directors in the Meeting, please refer to the "Resolution Notice of the 24th session of 10thBOD" (No. 2022-069) on the cninfo website (Juchao Website (www.cninfo.com.cn)). |
| The 25th session of 10thBOD | October 24,2022 | October 25,2022 | Totally 18 proposals including The Q3 Report of 2022, Provision for Credit Losses, Provision for Decline in Value of Inventories and Disposal of Non-Current Assets are deliberated and approved in the Meeting, for details, please refer to the "Resolution Notice of the 25th session of 10thBOD" (No. 2022-078) on the cninfo website (Juchao Website (www.cninfo.com.cn)). |
| The 26th session of 10thBOD | November 25,2022 | November 26,2022 | Totally 1 proposal including "Proposal on the Company's Appointment of the Chief Compliance Officer". is deliberated and approved by The Board of Directors in the Meeting, for details, please refer to the "Resolution Notice of the 26th session of 10thBOD" (No. 2022-087) on the cninfo website (Juchao Website (www.cninfo.com.cn)). |
| The 27th session of 10thBOD | December 6,2022 | December 7,2022 | Totally 10 proposals including"Proposal on Expecting Daily Related Transactions in 2023", "Proposal on Expecting Continued Related Transactions between the Company and its Subsidiaries and Sichuan Changhong Group Finance Co., Ltd. and the Proposal on the Credit Guarantee Line Provided by Holding Subsidiaries" are deliberated and approved by The Board of Directors in the Meeting, for details, please refer to the "Resolution Notice of the 27th session of 10thBOD" (No. 2022-087) on the cninfo website (Juchao Website (www.cninfo.com.cn)). |
| The 29th session of 10thBOD | December 16,2022 | December 17,2022 | Totally 1 proposals including Increase in Expected Routine Related Transactions for 2022 are deliberated and approved in the Meeting, for details, please refer to the "Resolution Notice of the 29th session of 10thBOD" (No. 2022-097) 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 | |||||||
| Director | Times of Board meeting supposed to attend in the report period | Times of present in person | Times of attending by communication | Times of entrusted presence | Times of Absence | Absent the Meeting for the second time in a row (Y/N) | Times of attending the shareholder general meeting |
| Wu Dinggang | 14 | 2 | 12 | 0 | 0 | N | 3 |
| Zhong Ming | 14 | 2 | 12 | 0 | 0 | N | 4 |
| Yong Fengshan | 14 | 0 | 14 | 0 | 0 | N | 0 |
| Kou Huameng | 14 | 2 | 12 | 0 | 0 | N | 5 |
| Zhao Qilin | 14 | 1 | 13 | 0 | 0 | N | 0 |
| Hu Zhaogui | 14 | 1 | 13 | 0 | 0 | N | 0 |
| Hong yuanjia | 14 | 1 | 13 | 0 | 0 | N | 1 |
| Mou Wen | 14 | 2 | 12 | 0 | 0 | N | 4 |
| Zhao Gang | 14 | 1 | 13 | 0 | 0 | N | 1 |
Explanation of absent the Board Meeting for the second time in a rowDuring the reporting period, none of the directors failed to attend two consecutive Board Meeting in person.(iii) Objection for relevant events from directorsWhether 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 directorsWhether 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 ListedCompanies of Shenzhen Stock Exchange No. 1 - Standardized Operation of Main Board Listed Companies" andother laws and regulations, actively attended the company's board meetings and the company's general meeting ofshareholders, performed duties conscientiously and diligently, made prudent and scientific decisions on variousmatters reviewed by the company's board meetings, and all their professional suggestions on the company’s majordecisions have been adopted .VII. The special committees under the board during the reporting period
| Committee name | Members | Number of meetings held | Date of meeting | Meeting content | Important comments and suggestions made | Other performance of duties | Specific circumstances of the objection (if applicable) |
| Strategy Committee | Wu Dinggang, Zhong Ming, Yong Fengshan, Kou Huameng, Zhao Qilin, Hu Zhaogui, Zhao Gang | 2 | March 19,2022 | A total of one proposal was deliberated on the Proposal on the Company's Development Plan in 2022. | The proposal was deliberated and passed and agreed to be submitted to the board of directors of the company for consideration. | Not applicable | N/A |
| July 8,2022 | A total of 1 proposal was deliberated on the Proposal of the Company and its subsidiaries to Participate in the Establishment of Industrial Investment Funds and Related Transactions. | The proposal was deliberated and passed and agreed to be submitted to the board of directors of the company for consideration. | Not applicable | N/A | |||
| Audit Committee | Hong Yuanjia, Mou Wen, Zhao Gang | 6 | January 25,2022 | Two proposals were deliberated, namely, the Company's 2021 Financial Accounting Statement and Internal Control Audit Schedule and the Company's 2021 Unaudited Financial Accounting Statement. | All proposals were deliberated and passed. | Not applicable | N/A |
| March 4,2022 | A total of 1 proposal was deliberated, namely the First Draft of the Audit of the Company's Financial Accounting Statements in 2021. | The proposal were deliberated and passed | Not applicable | N/A | |||
| March 28,2022 | Six proposals were deliberated, namely the Audited Financial Accounting Report of the Company in 2021, Audit Report on Internal Control in 2021, Summary Report on the Company Audit Work by ShineWing Certified Public Accountants in 2021, Proposal on Renewing the | All the proposals were deliberated and passed, and five proposals were agreed to be submitted to the Board of Directors for deliberation, namely, the Audited Financial Accounting Report of the Company in 2021, Audit Report on Internal Control in 2021, the Proposal on Renewing the Appointment of the Financial Report, Internal Control Auditing Organization and Payment of Remuneration in 2022, the | Not applicable | N/A |
| Appointment of the Financial Report, Internal Control Auditing Organization and Payment of Remuneration in 2022, Proposal on Changes of the Company's Accounting Policy and Proposal on the Company's Forward Foreign Exchange Fund Trading Business. | Proposal on Changes of the Company's Accounting Policy and Proposal on the Company's Forward Foreign Exchange Fund Trading Business. | ||||||
| April 15,2022 | A total of 1 proposal was deliberated, namely the Financial Statement of the Company for the First Quarter of 2022. | The proposal was deliberated and passed and agreed to be submitted to the board of directors of the company for consideration. | Not applicable | N/A | |||
| August 6,2022 | A total of 1 proposal was deliberated, namely the Semi-annual Financial Report of the Company in 2022 | The proposal was deliberated and passed and agreed to be submitted to the board of directors of the company for consideration. | Not applicable | N/A | |||
| October 15,2022 | A total of 1 proposal was deliberated, namely the Financial Statement of the Company for the Third Quarter of 2022. | The proposal was deliberated and passed and agreed to be submitted to the board of directors of the company for consideration. | Not applicable | N/A | |||
| Nomination Committee | Wu Dinggang, Mou Wen, Hong Yuanjia, Zhao Gang | 1 | November 23,2022 | A total of 1 proposal was deliberated, namely the Proposal of the Board of Directors of the Company on Examining the Qualification of the Chief Compliance Officer to be Appointed. | The proposal was deliberated and passed and agreed to be submitted to the board of directors of the company for consideration. | Not applicable | N/A |
| Remuneration and Appraisal Committee | Wu Dinggang, Zhao Gang, Mou Wen, Hong Yuanjia | 2 | March 19,2022 | It deliberated the remuneration assessment and payment of directors and senior management of the company in 2021. | It deliberated and passed the remuneration assessment of directors and senior management personnel and agreed to submit it to the Board of Directors of the company for deliberation. | Not applicable | N/A |
VIII. Works from Supervisory CommitteeWhether the Company has risks or not in reporting period that found in supervisory activity from supervisorycommittee
□Yes √ No
Supervisory committee has no objection about supervision events in reporting periodIX. Staff of the Company(i) Numbers, professional structure and education background
| On-job employee in parent company at period-end (people) | 4,055 |
| On-job employee in main subsidiary at period-end(people) | 10,267 |
| Total on-job employees at period-end(people) | 14,322 |
| Current total payroll(people) | 14,322 |
| Number of retired employees with expenses paid by the parent company and main subsidiary (people) | 93 |
| Professional structure | |
| Types of professional category | Numbers of professional category (people) |
| Production staff | 7,605 |
| Salesman | 3,963 |
| Technician | 1,891 |
| Financial staff | 278 |
| Administration staff | 585 |
| Total | 14,322 |
| Education background | |
| Type of education background | Numbers (people) |
| High school and below | 9,582 |
| Junior college | 1,972 |
| Undergraduate | 2,576 |
| Master and above | 192 |
| Total | 14,322 |
(ii) Remuneration policyThe Company formulated human resources and compensation policy conducive to sustainable development ofenterprise according to the provisions of relevant laws and policies promulgated by the state and to the Company'sactual situation.The company continued to promote the performance growth index system (GPI), defined the direction ofemployee performance growth and progress, effectively encouraged employees to take the initiative to find gapsand fill shortcomings, and continuously improved their professional ability and work efficiency. At the same time,based on the growth level of employees, it has established a remuneration mechanism that is suitable for it, andoptimized the post value evaluation and remuneration adjustment mechanism to enhance the internal fairness andexternal competitiveness of the company's remuneration and strengthen the salary concept of "post value reflectedand performance-oriented". In order to promote the achievement of each unit's performance, this year, the companywill further optimize and adjust the incentive system, strengthen the quantitative embodiment of operating resultsand incremental value, and design differentiated incentive schemes according to the characteristics of differentbusiness units with consideration of system balance, so as to realize the effectiveness of positive guidance andeffectively stimulate the business vitality of each business unit.During the reporting period, the company further optimized the position promotion evaluation and employmentmechanism, improved the position system and the promotion channels in sequence, and further stimulated the team'svitality through the integrating system evaluation and employment, performance growth system and othermechanisms, and matched the dynamic adjustment of remuneration; continued to promote the application ofperformance management in the whole process, optimized the application of performance communication andfeedback information methods, strengthened the application of performance results in cadre promotion anddemotion, talent selection, salary adjustment and year-end evaluation, and encouraged employees to developtogether with the company.(iii) Training plansThe company aimed at creating a learning organization, continuously optimized training and talentdevelopment, and built talent standards and competency models of each sequence based on the company's annualtalent development and training program; built Meiling online learning system and knowledge asset management
system to extract and precipitate internal experience and ability; organized the implementation of internal andexternal special precision training programs; carried out projects such as learning map and talent structureoptimization, and gradually formed a growth mechanism that combined training with employee growth and careerdevelopment.
1. Further develop the mechanism of selecting, educating, using and retaining reserve talents. The companyhas established a clear talent standard evaluation model to complete the talent standards for management positions,supervisor-level positions and various professional positions in all sequences; established a succession map oftalents in key positions in each sequence, and clarified the current situation of the existing talent team and thesuccession system of different types of talents in the future. The company focused on optimizing the echelonstructure of the "Yongquan Plan" talent reserve, and optimized and adjusted the echelon structure of middle andsenior reserve cadres, A-class reserve successors, A-class reserve learning, B-class reserve supervisors, excellentcollege students and other talents through the selection of young reserve cadres who were born after 1990 and theregular review and evaluation of reserve talents in the library. At the same time, based on the needs of future businessdevelopment, it reserved talents appropriately in advance to realize dynamic management of talents.
2. Accurate training, to improve the training effect. Based on the needs of business development, it has built amulti-level and multi-category talent training system. On the one hand, it improved the training enthusiasm andprofessional ability of the trainees through activities such as project integrating system and industry exchange; onthe other hand, it introduced external training courses and internal course development to effectively promote theprecision training program in view of the common shortcomings of the team and shortcomings of personal ability;According to the professional ability of key positions in the professional level, it built a learning map and definedthe map of growing professional routes; At the same time, it established the training organization guarantee system,and built the company's classified and graded talent training system. Through career planning analysis, courseorientation promotion, node control, project review, training examination and other ways, it guided the vertical(promotion) and horizontal (multi-skilled workers, rotation) all-round development effectively, and achieved thetraining effect and talent promotion gradually.
3. Enrich the company's internal knowledge asset management system, redefine the company's intellectualassets standards and organizational guarantee system. On the one hand, it continued to supplement and update theteaching materials of Meiling's knowledge assets library on technology, management, manufacturing, quality, safetyand environmental protection; On the basis of "internal trainer certification system" and "benchmarking postknowledge extraction project", optimized the professional series of live courses, internalized the company's standardtalent knowledge base and carried on the inheritance and influence; On the other hand, it carried out the learningmap project, and designed the learning map through the process, structure, finance and other sequences, so as toclosely connect the qualifications of specific positions with the learning map, and to combine the talent developmentwith the learning development organically, and to promote the scientific, systematic and efficient training ofprofessionals in each sequence position of the company.(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 Dividendpolicy during the Reporting Period
√ Applicable □ Not applicable
During the reporting period, the company has strictly executed the profit distribution policy in accordance withthe "Articles of Association", the formulation and implementation of the company's cash dividend policy are in linewith 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 andmechanisms have been complete, the responsibilities of independent directors have been clear and have played itsdue role, minority shareholders have had the opportunities to fully express their views and aspirations, and thelegitimate interests of minority shareholders have been maintained.During the reporting period, the company implemented the annual profit distribution plan for 2021, that is,based on the total share capital of 1,029,923,715 shares on date of record at the time of implementing the 2021annual equity distribution plan (including 881,733,881 shares of A shares and 148,189,834 shares of B shares), thecompany distributed a cash dividend of RMB 0.5 (including tax) for every 10 shares to all shareholders, with a totalcash dividend of RMB 51,496,185.75.
| Special explanation on cash dividend policy | |
| Satisfy regulations of General Meeting or requirement of Article of Association (Y/N): | Y |
| Well-defined and clearly dividend standards and proportion (Y/N): | Y |
| Completed relevant decision-making process and mechanism (Y/N): | Y |
| Independent directors perform duties completely and play a proper role (Y/N): | Y |
| Minority shareholders have opportunity to express opinions and demands totally and their legal rights are fully protected (Y/N): | Y |
| Condition and procedures are compliance and transparent while the cash bonus policy adjusted or changed (Y/N): | Y |
(ii) The Company is profitable during the reporting period and the parent company has positive profitavailable 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) | 0.9 |
| 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) | 92,693,134.35 |
| Cash dividend for other ways (i.e. repurchased) (RMB) | 737,197.77 |
| Total cash dividend (including other way) (RMB) | 93,430,332.12 |
| Profits available for distribution (RMB) | 909,082,037.66 |
| Ratio of cash dividend (including other way) in total profit distribution | 100% |
| Cash dividend | |
| Taking the total share capital on the equity registration date of the company’s on December 31, 2022 as the base, distribute cash dividends of 0.9 yuan (tax included) for every 10 shares to all shareholders, not giving bonus shares, and not converting capital reserve in to equity. | |
| Detail explanation on profit distribution or capitalization from capital public reserve | |
| In 2022, the company's parent company realized a net profit of RMB 180,902,350.76 in individual statements. According to relevant regulations, the undistributed profit at the beginning of this year is RMB 952,820,937.05, after deducting the annual profit of RMB 51,496,185.75 in 2021 allocated in that year and drawing the statutory surplus reserve of RMB 18,090,235.08, the accumulated undistributed profit in individual statements of the parent company at the end of 2022 is RMB 1,064,136,866.98. In addition, in 2022, the net profit attributable to the owner of the parent company in the consolidated statement of the company was RMB 244,538,734.49. According to the relevant regulations, the undistributed profit at the beginning of this year is RMB 734,129,724.00 in the consolidated statement, and the accumulated undistributed profit at the end of 2022 is RMB 909,082,037.66 after deducting the annual profit of RMB 51,496,185.75 in 2021 and drawing the statutory surplus reserve of RMB 18,090,235.08. According to the relevant regulations, the company's profit distribution shall be based on the distributable profits of the parent company, and according to the principle of distributing the accumulated undistributed profits in the consolidated statement and the parent company statement. Therefore, the profit available for distribution in 2022 is the accumulated undistributed profit of RMB 909,082,037.66 in the consolidated statement at the end of 2022. 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:The Company distributed a cash dividend of RMB 0.9 (including tax) for every 10 shares to all shareholders based on the total share capital of 1,029,923,715 shares on December 31, 2022, with no bonus or conversion of reserve fund into share capital. It is expected to distribute a cash dividend of RMB 92,693,134.35. After this distribution, it is estimated that the remaining accumulated undistributed profit of the parent company is RMB 971,443,732.63, and the remaining undistributed profit will be carried forward to the next year for distribution. | |
XI. Implementation of the Company’s stock incentive plan, employee stock ownership plan or otheremployee 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 controlIn accordance with the Basic Norms for Enterprise Internal Control and its supporting guidelines, and theInformation 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 andthe Ministry of Finance and other relevant regulations, and combined with the Company's internal control systemand internal control evaluation methods, the company organized its internal control work, effectively implementedinternal control, and continuously improved and optimized the company's internal control system so as to adapt tothe needs and changes of the internal and external environment.
The company's 2022 Annual Internal Control Self-Assessment Report fully, truly and accurately reflected the actualsituation of the company's internal control. The units, businesses and matters included in the assessment scope, aswell as high-risk areas, covered the main aspects of the company's operation and management, and the companymaintained effective internal controls in high-risk areas and in all material aspects. During the reporting period, thecompany had no major defects and significant defects in internal control.(ii) Details of major defects in IC appraisal report that found in reporting period
□Yes √ No
XIII. Management and controls on the subsidiary during reporting period
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) | March 31,2023 | ||
| Index of evaluation report of internal control disclosed (Full-text) | Juchao Website（www.cninfo.com.cn） | ||
| The ratio of the total assets of units included in the scope of evaluation accounting for the total assets on the company's consolidated financial statements | 99.85% | ||
| The ratio of the operating income of units included in the scope of evaluation accounting for the operating income on the company's consolidated financial statements | 100.00% | ||
| Defects Evaluation Standards | |||
| Category | Financial Reports | Non-financial Reports | |
| Qualitative criteria | 1. Material defect: severally or jointly with other defects, will lead to material wrong reporting in financial reports being not able to prevented or found or rectified in a timely manner. Occurrence of the followings will be deemed as material defect: 1. inefficiency of environment control; 2. fraud of directors, supervisors and senior management; 3. The external auditor finds material wrong reporting in current financial statement, while the Company has not found such reporting during its operation; 4. The material defect identified and reported to the management fails | Occurrence of the followings shall be deemed as material defect, otherwise as major defect or general defect subject to the level of influence. 1. breach of national laws, regulations or regulatory documents; 2. procedure for making significant decisions is not scientific; 3. absence of system may lead to invalid system; | |
Name ofcompany
| Name of company | Integration plan | Integration progress | Problems encountered in integration | Actions taken | Resolve progress | Follow-up resolution plan |
| Not applicable | - | - | - | - | - | - |
| to be rectified in a reasonable time period; 5. The audit committee and audit department of the Company exercise invalid supervision upon internal control; 6. Other defects which may affect financial statement users to make correct judgment. 2. Major defect: severally or jointly with other defects, will lead to wrong reporting in financial reports being not able to prevented or found or rectified in a timely manner which still needs attention from the management though it doesn’t reach or exceed material defect as described above. Occurrence of the followings will be deemed as major defect: (1) Financial losses caused by guaranteeing and investing in securities and financial derivatives transactions and disposing property right and stock right without authorization; (2) The company's financial staff or other relevant business personnel have unclear powers and responsibilities or job chaos, or are suspected of being involved in economic or job-related crimes and have been transferred to the judiciary; (3) Punishment or severely negative impacts on the company's image due to the bias implementation of the policy or accounting errors, etc.; (4) Financial losses caused by destroying, concealing, or altering the important original evidences at will, such as invoices and checks, etc. (5) Cash income is not entered into the account book, or public funds are deposited in private account or "private coffer" is established by breaking the rules. 3. General defect: other internal control related defects that do not constitute material defects or major defect. | 4. Material or major defects are not likely to rectify; 5. Large negative effects on the company and disclosed in the form of announcement; 6. Other issues that materially affect the Company. | |
| Quantitative standard | 1. Proportion of potential wrong reporting in total operating income: Material defect: wrong reporting ≧0.5%; Major defect: 0.1% ≤ wrong reporting＜0.5%; General defect: wrong reporting＜0.1%. 2. Proportion of potential wrong reporting in total profit: Material defect: wrong reporting ≧10%; Major defect: 5% ≤ wrong reporting＜10%; General defect: wrong reporting＜5%. 3. Proportion of potential wrong reporting in total assets: Material defect: wrong reporting ≧0.5%; Major defect: 0.1% ≤ wrong reporting＜0.5%; General defect: wrong reporting＜0.1%. 4. Proportion of potential wrong reporting in total owners’ equity: Material defect: wrong reporting ≧0.5%; Major defect: 0.1% ≤ wrong reporting＜0.5%; General defect: wrong reporting＜0.1%. | 1. Proportion of direct property loss in total operating income: Material defect: wrong reporting ≧0.1%; Major defect: 0.05% ≤ wrong reporting＜0.1%; General defect: wrong reporting＜0.05%. 2. Proportion of direct property loss in total profit: Material defect: wrong reporting ≧10%; Major defect: 5% ≤ wrong reporting＜10%; General defect: wrong reporting＜5%. 3. Proportion of direct property loss in total assets: Material defect: wrong reporting ≧0.2%; Major defect: 0.1% ≤ wrong reporting＜0.2%; General defect: wrong reporting＜0.1%. |
| 4. Proportion of direct property loss in total owners’ equity: Material defect: wrong reporting ≧0.2%; Major defect: 0.1% ≤ wrong reporting＜0.2%; General defect: wrong reporting＜0.1%. | ||
| Amount of significant defects in financial reports | 0 | |
| Amount of significant defects in non-financial reports | 0 | |
| Amount of important defects in financial reports | 0 | |
| Amount of important defects in non-financial reports | 0 | |
(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 2022 according to Basic Standards of Internal Control for Enterprise and relevant regulations. | |
| Disclosure details of audit report of internal control | Disclosed |
| Disclosure details of audit report of internal control | March 31,2023 |
| Disclosure date of audit report of internal control (full-text) | Juchao Website（www.cninfo.com.cn） |
| Index of audit report of internal control (full-text) | Standard unqualified |
| Opinion type of auditing report of IC | No |
Whether CPA carries out qualified opinion for audit report of internal control or not
□Yes √ No
Whether the opinions are consistent in audit report of internal control carrying out by CPA and the self-evaluationreport of the Board or not
√ Yes □ No
Whether CPA carries out qualified opinion for audit report of internal control or notXV. The rectification of self-examination problems in the special actions on governance of listed companiesIn 2021,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 seekingtruth 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 itscorporate governance complied with the requirements of the Company Law, the Securities Law, Shenzhen StockExchange Listed Companies Self-regulation Guidelines No.1 and the Standardized Operation of Main Board ListedCompanies 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 behalfof other non-tradable shareholders in the company's reform plan for non-tradable shares. In March 2016, accordingto the approval of the State-owned Assets Supervision and Administration Commission of the State Council, the49,477,513 state-owned shares (including the already held 47,823,401 shares and the unrecovered relevant rights ofthe consideration of 1,654,112 shares received for the share reform on behalf of other non-tradable shareholders inthe 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 InvestmentGroup free of charge.
2. According to the approval of the State-owned Assets Supervision and Administration Commission of the StateCouncil and the regulations of relevant departments, Meiling Group should transfer the shares paid on behalf ofothers and related rights held by it to Industry Investment Group at one time free of charge after recovering all the1,654,112 shares of consideration for the share reform. At present, Meiling Group has only recovered 1,141,053shares, and the holders of the remaining consideration shares for the share reform have been unable to get in touchfor 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 handlesthe relevant procedures for free transfer as soon as possible after all the consideration shares for the share reformare recovered. Prior to this, the company's restricted shares held by Meiling Group would not enjoy any rights asshareholders 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 boardof directors, independent directors, shareholders holding more than 1% of voting shares of a listed company or theinvestor protection institutions established in accordance with laws, administrative regulations or the provisions ofsecurities regulatory authority of the State Council may act as solicitors”, and the company should complete thescope 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 directorsand the fourth extraordinary general meeting of shareholders in 2021, it was agreed that the company wouldcomplete the solicitation subject for voting rights in the Articles of Association and the Rules of Procedure for theGeneral Meeting of Shareholders (Announcement No. 2021-091, No. 2021-093, No. 2021-109), and the industrialand commercial registration of changes has been completed.(iii) The controlling shareholder, the actual controller and the listed company shared the trademark and therectifications
1. The company and the controlling shareholder shared trademark. Regarding the shared trademark, only thecontrolling shareholder authorized its "Changhong" trademark to Changhong Meiling for free use, and there was nosuch 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 thebusiness of both parties, nor affected the independence of Changhong Meiling as a listed company. In future, thecompany will legally and compliantly use trademarks in strict accordance with relevant laws and regulations.
V. Environmental & Social ResponsibilityI. Major environmentalThe listed Company and its subsidiary whether belongs to the key sewage units released from environmentalprotection department
√ Yes □ No
1. Policies and industry standards related to environmental protection
In their daily production and operation, the Company and its subsidiaries strictly abide by the EnvironmentalProtection Law, Environmental Impact Assessment Law, Law on Prevention and Control of Water Pollution, Lawon the Prevention and Control of Atmospheric Pollution, Law on Prevention and Control of Environmental Pollutionby Solid Waste, Regulations on the Administration of Construction Project Environmental Protection,Environmental Protection Regulations of Anhui Province, Regulations on Prevention and Control of EnvironmentalPollution by Solid Waste in Sichuan Province, Water Pollutant Discharge Limit Standards of Guangdong Provinceand other relevant laws and regulations.During the reporting period, Zhongshan Changhong, a subsidiary of the company, carried out self-monitoring workaccording to the regulations, in which refer to the Emission Control Standard for Industrial Enterprises VolatileOrganic Compounds (DB12/524-2020) for VOCs, the secondary standard of the second period in Emission Limitsof Air Pollutants (DB44/27-2001) for particulate matters and total non-methane hydrocarbons, and the secondarystandards of Emission Standard of Odor Pollutants (GB14554-93) and Emission Standard of Air Pollutants forIndustrial Kiln and Furnace (GB9078-1996) for odor concentration.
2. Environmental protection administrative license
The Company and its subsidiaries conscientiously implement the Environmental Protection Law, theEnvironmental Impact Assessment Law and the Regulations on the Administration of Construction ProjectEnvironmental Protection, and consciously abide by environmental protection laws and regulations, industryrequirements and government regulations at all levels. For new construction, renovation and expansion projects, theCompany and its subsidiaries adhere to the system of project environmental assessment and "three simultaneities",fully implement environmental protection measures, well ensure environmental protection management in allaspects of project planning, design, construction and operation, and make full use of advanced technology andscientific and technological means to lower and reduce environmental pollution. It carries out environmental impactassessment simultaneously in the feasibility study and demonstration stage of the construction project, and entruststhe third-party professional organization to analyze the feasibility of the industrial policy, land use planning,environmental impact and environmental protection measures of the project. The construction starts upon theapproval of the competent environmental protection department. During the construction of the project, it carefullyimplements the environmental protection requirements, and builds the environmental protection facilitiessimultaneously. After the completion, the environmental protection acceptance of the project is organized in time toensure that the project meets the acceptance criteria and meets the requirements of environmental assessment before
it is officially put into use. During the operation period, it carries out pollution prevention and control actively instrict accordance with the environmental impact assessment documents of the project and the approval requirementsof the competent environmental protection department to ensure the normal operation of environmental protectionfacilities.In terms of project construction, the technical transformation project of Zhongshan Changhong, a subsidiaryof the company, has been completed in strict accordance with the implementation of the environmental impactassessment system and the "three simultaneities" system, and the project acceptance has been completed. Thesewage discharge permit was applied on March 31, 2020 and is valid until March 30, 2023.
3.Industrial emission standard and specific conditions of pollutant emissions involved in production andoperation activities
| Company or subsidiary name | Main pollutant and specific pollutant type | Main pollutant and specific pollutant name | Way of discharge | number of discharge outlets | Distribution of discharge outlets | concentration of discharge | Pollutants discharge standards enacted | Total discharge volume | Total discharge volume certified | Discharge beyond the standards |
| Zhongshan Changhong Electric Appliance Co., Ltd | Waste water | PH | The self-built sewage treatment station will be discharged after reaching the standard | 1个 | Back end of plant No.5 | 7.2 | 6-9 | - | - | Not exceeded |
| （COD） | 32 | 90 | 0.088t/a | 0.154t/a | Not exceeded | |||||
| total phosphorus | 0.25 | 0.5 | 0.0007t/a | - | Not exceeded | |||||
| suspended matter | 4L | 60 | 0.011t/a | 0.93t/a | Not exceeded | |||||
| Exhaust gas | VOCs | Supporting exhaust gas treatment facilities after the treatment of high-altitude discharge | 4 | One for plant no.1/no.2, two for plant no.2 | 0.29 | 60 | 0.0106t/a | 0.1045t/a | Not exceeded | |
| The odor concentration | 309 | 6000 | Small amount | ≤2000(dimensionless) | Not exceeded | |||||
| Non-methane total hydrocarbon | 7.73 | 120 | Small amount | Small amount | Not exceeded | |||||
| particulate matter | ＜20 | 120 | 0.0099t/a | 0.11t/a | Not exceeded |
4. Treatment of pollutants
Zhongshan Changhong, a subsidiary company, treats pollutants in accordance with relevant laws andregulations on environmental protection, and disposes of them according to disposal requirements after they reachthe relevant standards.
In terms of sewage, it adopts the system facility technology of "physico-chemical + biochemical process" fortreatment. The system was upgraded in 2015 and added the reclaimed water recycling system in 2018. In terms ofwastewater, an online monitoring system is set up to monitor the main pollutant indicators, and discharge can be
made only after the standard is reached. All indicators in the quarterly inspection report are lower than the emissionlimits by more than 50%.In terms of waste gas, it adopts the system facility technology of "biodegradation + negative ion purification +activated carbon adsorption", and the system was upgraded in 2015. The waste gas treatment facilities andproduction equipment are operated in linkage, with 6 daily inspections and one quarterly outsourced inspection, andthe discharge of various pollutants is far below the discharge limit.
5. Independent plan to monitor environment
The Company and its subsidiaries have established regular monitoring plan for environmental pollutants, set upspecial funds for pollutants monitoring, and engaged third-party authoritative to regularly monitor the operation ofmajor pollution-production links and environmental protection treatment facilities in connection with the majorpollutants produced by the Company and its subsidiaries, to make sure that the Company and its subsidiaries couldachieve emission standards in a full round.
6. Emergency plan for environmental emergencies
The Company and its subsidiaries have set up related emergency plans for environmental emergencies. TheCompany and its subsidiaries have determined classified warning based on the different extent and severity ofenvironmental impacts that may be caused by the material environmental factors, defined the responsibilities foremergency response, regulated emergency handling procedures, established special team to handle emergencies andorganized regular rehearsal and appraisal of relevant emergency plans, so as to ensure the effectiveness of theseplans, improve their capability of emergency handling and take precautions against contingent emergencies.
7. Investment in environmental governance and protection and the relevant payment of environmentalprotection tax
The company's investment in environmental protection mainly includes the investment in the construction ofenvironmental protection facilities, that is, the investment in purchasing and installing fixed assets such asenvironmental protection facilities and equipment, as well as the operation and maintenance expenses ofenvironmental protection facilities, environmental protection tax, and third-party outsourcing testing.
8.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 energymanagement of each production unit, improves the internal energy management and energy efficiency indexassessment 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. Duringthe reporting period, the company vigorously promoted and applied the industry's advanced energy-savingequipment and technologies, and carried out energy-saving technical transformation; carried out energy-savingtransformation 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 forinfrared heating technology, application research for air energy units, application research for air compressor wasteheat 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 withinformatization construction, improved the production and manufacturing system through internet technology,realized lean production management, improved production efficiency, and reduced energy waste and CO
emissions.
9. Administrative penalties for environmental issues during the reporting period
| Name | Cause | Violation of the situation | Result | Impact on the production and operation of listed companies | The company's rectification measures |
| Not applicable | Not applicable | Not applicable | Not applicable | Not applicable | Not applicable |
10. Other environment information that should be disclosed
According to the Environmental Information Disclosure Measures of Enterprises and Institutions, in line with theprinciple of mandatory disclosure and voluntary disclosure combined, the Company and its subsidiaries haverealized the disclosure of information relating to environmental impact assessment, project acceptance, pollutantsproduction and discharge, solid waste management, important environmental factors, environmental objectives andperformance of construction projects.
11. Other environment related information
In order to further realize the scientific and systematic environmental protection work of the Company and itssubsidiaries, the Company and its subsidiaries have established an environmental management system in accordancewith ISO14001 standards, set up an environmental protection organization, acquired environmental protectionresources, regularly identified, updated and appraised environmental factors, compliance obligations, environmentalrisks and opportunities, and regularly determined environmental objectives and management programs. Throughthe implementation of management programs and continuous normal improvement, the environmental performanceof the Company and its subsidiaries has been continuously improved. Through regular internal audit andmanagement review, as well as the verification and examination of the third parties, the environmental managementsystem of the Company and its subsidiaries has been effectively controlled and fully meets the system managementstandards and relevant regulations.II. Social responsibilityThe company adheres to the core values of "dedication, responsibility, co-creation and sharing", and achieves thepurpose of "staff satisfaction, customer satisfaction, and shareholder satisfaction" through standardized operationand scientific management. While achieving benign development, the company has also actively fulfilled its socialresponsibilities 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 andthe Rules of Procedure for the General Meeting of Shareholders, regulates the convening, holding and votingprocedures of the general meeting of shareholders, equally treats all shareholders, especially small and mediumshareholders equally, and ensures that all shareholders enjoy equal status and fully exercise their own rights. Underthe 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 andmanagement, financial status, etc. through annual performance briefings, investor telephone hotline, e-mails, andthe investor relations interactive platform of the Shenzhen Stock Exchange, and discloses information to allinvestors in a truthful, accurate, complete, concise and clear, and easy-to-understand manner; the company attachesgreat importance to the shareholder return mechanism.
During the reporting period, in order to thank investors for their long-term support to the company, the companyorganized a "Meiling Shareholder Feedback Activity" to repay all shareholders with sincerity.
In addition, during the reporting period, the Company launched the "Anhui Investor Service Week of ShenzhenStock Exchange - Entering the Listed Companies", which allowed investors to enter the company, listen to theirdemands, which actively expanded effective ways to improve the communication quality of the company, helpedinvestors better understand the company's operating performance, and effectively improved shareholders'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 companyhas established a relatively complete employment management system, including labor contract system, salary andperformance appraisal system, welfare management system, training management system, employee vacationmanagement system, etc..
The company attaches importance to the vital interests of employees, protects the legitimate rights and interestsof employees to the maximum extent, establishes harmonious labor relations, and strives to form a good mechanismfor the company and employees to create and share together. At the same time, the company creates a people-oriented cultural atmosphere by providing various holidays, allowances, condolences and organizing diversifiedemployee activities, benchmarking personnel selection, carnivals, etc., and continuously improves employeesatisfaction.
3. Protection of the rights and interests of suppliers, customers and consumers
The company has established a relatively complete procurement management system, optimized and revisedsystem documents in a timely manner, unified information system tools, strictly controlled every link of theprocurement business, cultivated core and strategic suppliers, and established a high-end supply chain cultivationplan for component suppliers of high-end products, so as to form a synergy, cooperation and win-win situationbetween the company and its suppliers.
The company attaches great importance to customer needs, has a relatively complete product development
process, advanced R&D means, and develops competitive products. It pays attention to product quality, strongquality control ability and reliable product performance, and has a refined quality management system, and haspassed the management system certifications such as ISO9001, ISO14001 and ISO45001. The company hascomplete test items and strong detection ability. It has built one of the few laboratories in the industry, such as RoHSand intelligent IoT. The company's testing center has CNAS accreditation qualification, which meets therequirements of strict and high-level testing of products. In the domestic market, the company increases its attentionand support in terminal construction, user experience and product training to increase the sales of high-end products;In the export market, it fully recognizes the requirements of local laws and regulations, strictly certifies products,and fully verifies the reliability and environmental adaptability of products to ensure the reliability of products inthe target market. Its export products have covered more than 130 countries or regions. According to different typesof customers, it implements classification and system management, timely feedbacks customers' demands,continuously improves quality service and enhances brand image; And tracks market performance by means ofcustomer satisfaction survey and SCR monitoring.For the protection of consumers' rights and interests, the company has a relatively advanced closed-loopmanagement system for user service. In order to meet users' service needs, it gradually improves the functionconstruction of official channel service platforms such as 400 service hotline, brand official website, WeChat officialaccount and Zhihuijia APP, attaches importance to and strengthens the user interaction and experience of socialplatforms such as Tik Tok, Xiaohongshu, Weibo, Bilibili and Zhihu, and understands and handles users' needs andquestions in time. In view of user demand processing, it promotes the process visualization management and userevaluation system management of work order processing timeline. In addition, the company pays attention toimproving consumers' product guarantee service ability, and has created Meiling's exclusive characteristic guaranteeservice measures, and upgraded and launched the services such as unconditional return within 180 days for MeilingM fresh refrigerator because of dissatisfaction in preservation, and unconditional return within 180 days for Meilingclean refrigerator because of dissatisfaction in disinfection and sterilization, so as to effectively meet users' needsand enhance consumer satisfaction.
4. Social welfare
Over the years, the company has been actively participating in social welfare undertakings and various socialwelfare activities. The company strictly implements the internal environmental operation control procedures and aseries management systems related to environment, safety and product quality, such as Energy ManagementRegulations, Safety Production Responsibility System, Safety Training Management System, and "Process QualityControl Points" Management Measures for Refrigerator and Freezer Products, ensures that the company'sproduction and service activities comply with relevant national legal requirements; and actively carries out actionssuch as helping employees with serious illnesses and advocating voluntary donations by employees.
During the reporting period, in order to actively fulfill its corporate social responsibility, its subsidiary,Zhongke Meiling, will donate a total of no more than RMB 5.65 million to 11 well-known domestic universitieswithin 10 years to support the development of higher education; In order to help the people in the earthquake-stricken areas in Luding, the company donated RMB 1 million to the earthquake relief work in Luding County
through Mianyang Charity Federation, to help the affected people tide over the difficulties and rebuild their homes,which further enhanced the brand reputation, social image and influence of the company and its subsidiaries.III. Consolidate and expand the achievements of poverty alleviation and rural revitalizationThe company actively undertakes corporate social responsibilities, implements Xi Jinping's socialist ideologywith Chinese characteristics in the new era with positive actions, and assumes the social responsibility that anenterprise should shoulder. During the reporting period, the company successively carried out the "RuralRevitalization of Meiling - Excellent Products Conference of Base Agricultural Products" and the love assistanceactivities of Tongxin Primary School in Tiantangzhai, Jinzhai County; donated RMB 150,000 to the People'sGovernment of Songdian Town, Huoqiu County, Lu'an City, Anhui Province for the collective industrialdevelopment project of north and south four villages in Songdian Town, Huoqiu County, in order to increaseemployment, expand the collective economy and help the local rural revitalization strategy. While achieving its ownbenign operation and development, the company continues to make efforts to contribute to local poverty alleviationand rural revitalization.
VI. Important EventsI. 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 notyet fulfilled by the end of reporting period
√ Applicable □ Not applicable
| Commitment | Commitment party | Type/content | Date | Term | Implementation | |
| Commitments made in acquisition report or equity change report | Sichuan Changhong Electric Co., Ltd.(hereinafter, the “Sichuan Changhong”) | About committed and promised in order to prevent horizontal competition in the Acquisition Report of Hefei Meiling Co., Ltd. | 1. The acquirer shall not engage in refrigerator business or activity which competes or will compete with business of Meiling Electrical Appliances, or that which has interest conflict with Meiling Electrical Appliances. | 2007-6-12 | Valid for long term | Strictly implemented |
| 2. The acquirer promises to apply shareholders’ right on a legal and reasonable manner and shall not take any action to limit or affect the normal operation of Meiling Electric. | Valid for long term | Strictly implemented | ||||
| 3. For any opportunity to engage in competing business, the acquirer will advise Meiling Electric in written for engaging such business or not. If Meiling Electrical Appliances gives no clear written reply as to whether engaging the competing business or not within 20 days after receipt of the aforesaid letter, it shall be deemed that it will not engage in such business. The acquirer will only engage in non-competing business provided that Meiling Electric confirms not to or is deemed to not engage in such non-competing business. | Valid for long term | Strictly implemented | ||||
| Commitment made during the non-public offer of 2010 | Sichuan Changhong | Commitment regarding to reducing and preventing competition with Meiling Electric | 1. It will not engage in such business or activity that competes with or has interest conflict with that of Meiling Electric except for the action taken for sake of Meiling Electric as required by Meiling Electrical Appliances. | 2010-6-24 | Valid for long term | Strictly implemented |
| 2. The Company promises to apply shareholders’ right on a legal and reasonable manner and shall not take any action to limit or affect the normal operation of Meiling Electric | ||||||
| 3. In case that Meiling Electric expects, on the basis of its existing business, to expand its operation scope into the business which the Company has already | ||||||
| operated, the Company agrees to grant priority acquisition right to Meiling Electric regarding such business if the same conditions are met, provided that the Company is still the controlling shareholder or actual controller of Meiling Electric | |||||
| Commitment regarding to reducing and standardizing related transaction with Meiling Electric | 1. Measures will be adopted to prevent continued related transaction with Meiling Electric: as to the related transaction that can not be prevented, it will sign related transaction agreement with Meiling Electric under the market principles of “equally paid and mutual benefit”, and fairly determined the transaction price according to the market prevailing standards. | 2010-6-24 | Valid for long term | Strictly implemented | |
| 2. Perform the necessary obligations to make related directors and related shareholder abstain from voting according to relevant regulation, and observe legal procedure for approving related transaction and information disclosure obligations. | |||||
| 3. Promise not to hurt legal interests of Meiling Electric and other shareholders through related transaction. | |||||
| Commit to authorized Changhong Air-conditioner and Zhongshan Changhong use “Changhong” trademark and relevant patents for free. | 2010-11-6 | Valid for long term | Strictly implemented | ||
| The Company | 1. Commit to disclose periodic reports on a truthful, accurate, complete, fair and prompt manner, to disclose all the information that have important influences over investors, to accept supervision under the CSRC and Shenzhen Stock Exchange. | 2011-1-7 | Valid for long term | Strictly implemented | |
| 2. Commit to make public clarification in respect of such information that is released from any public media and may result in misleading influences on stock price once the Company is aware of such information. | |||||
| 3. The directors, supervisors, senior management and core technicians of the Company will accept opinions and criticism from the social public, and they will not trade the Company’s securities, directly or indirectly, with any inside information and other illegal methods. The Company promises that the documents submitted to Shenzhen Stock Exchange exist no false statement or material omission, and no relevant information will be disclosed during the application for listing | |||||
| without prior content from Shenzhen Stock Exchange. | ||||||
| Commitment made in transfer of air conditioning assets property | Sichuan Changhong | 1. Since the property transfer didn’t involve the buildings and land currently used by Changhong Air-conditioner, Sichuan Changhong commits, upon the completion of equity transfer, to continue to lease such assets to Changhong Air-conditioner at market price. | 2009-12-10 | Valid for long term | Strictly implemented | |
| 2. After completion of this property transfer, Sichuan Changhong commits to manage to prevent new related transaction with Meiling Electric. For those which can not be prevented, Sichuan Changhong commits to determine the transaction price based on market accepted methods, so as to ensure fairness of related transaction and protection of the interest of Meiling Electric | Valid for long term | Strictly implemented | ||||
| 3. Sichuan Changhong commits that it will not engage in air conditioning and refrigerator business or activity which competes or will compete with business of Meiling Electric, or that which has interest conflict with Meiling Electric | ||||||
| Commitments of not to reducing the shares | Sichuan Changhong Electric Co., Ltd.and persons acting in concert CHANGHONG (HK) TRADING LIMITED | 1. Based on market conditions and as allowed by laws and rules, multiple measures were adopted adequately to increase shareholding of Meiling Electric, so as to demonstrate its firm confidence on the PRC economy and Meiling Electric with its actual actions, maintain sound development of capital market and promote recovery of healthy market | 2015-7-9 | Valid for long term | Strictly implemented | |
| 2. Continued to support operation and development of listed company as always and promoted the achievement of Meiling Electric. It is committed to bringing steady and real return to investors. | ||||||
| Commitment made during the non-public offer in 2016 | Directors and senior executives of the Company | Commitment on compensation of immediate dilution of return arising from non-public issuance of shares | 1. I hereby undertake not to deliver interests to other entities or individuals without consideration or at unfair conditions, nor to prejudice the Company’s interests by other means. | 2016-2-23 | Till the completion of projects invested with the proceeds from this non-public issuance of shares | Implementing |
| 2. I hereby undertake to restrain my role related consumption behaviors. | ||||||
| 3. I hereby undertake not to conduct any investment and consumption which is not related to performance of duties with utilization of any company assets. | ||||||
4. I hereby undertake that the remuneration system determined by the board of
directors or the remuneration and examination committee be linked toimplementation 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. | |||||||
| The Company | 1. Promise to truly, accurately, completely, fairly and timely publish periodic reports, disclose all information that has significant impacts on the investors, and accept the supervision and management of China Securities Regulatory Commission and the Shenzhen Stock Exchange. | 2016-10-12 | Valid for long term | Strictly implemented | |||
| 2. Make commitments that the Company will publicly clarify in time after knowing any information on any public communications media that may cause misleading influence on the stock price | |||||||
| 3. The Company’s directors, supervisors and senior executives will listen carefully to the opinions and criticisms of the public and never use any acquired inside information and other improper means to directly or indirectly engage in the trading activities of the Company's stock. | |||||||
| Perform the commitment promptly or not | √ Yes □ No | ||||||
| If the commitment is overdue and has not been fulfilled, the specific reasons for incomplete performance and the work plan for next step shall be explained in detail | Not applicable | ||||||
Note: The fulfilled commitments in the form will not be disclosed in the next periodic report.(ii) Concerning assets or project of the Company, which has profit forecast, and reporting period still inforecasting period, explain reasons of reaching the original profit forecast
□ Applicable √ Not applicable
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 2023Disclosure 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 capitaltransactions 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
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 significantaccounting errors compared with the financial report of the previous year
√ Applicable □ Not applicable
Found more details in 40. Change of major accounting policy and estimation under IV. Major accounting policyand estimation carried in the Section XII. Financial ReportVII. Compare with last year’s financial report; explain changes in consolidation statement’s scope
√ Applicable □ Not applicable
The consolidated financial statements of the Company include 24 subsidiaries, including Sichuan Changhong AirConditioner Co., Ltd., Zhongshan Changhong Electric Appliance Co., Ltd., and Zhongke Meiling CryogenicTechnology Co., Ltd. Compared to the previous year, during the reporting period, two subsidiaries included in the
consolidated statements were cancelled, namely, Meiling Cady Washing Machine Co., Ltd. and Jinan XiangyouElectric Appliance Marketing Co., Ltd. Due to the merger, the subsidiary Zhengzhou Meiling Electric ApplianceMarketing Co., Ltd. was reduced.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(i)CPAs currently engaged
| Name of domestic accounting firm | Shine Wing Certified Public Accountants(LLP) |
| Remuneration for domestic accounting firm ( RMB 10,000) | 138 |
| Continuous life of auditing service for domestic accounting firm | 14 years |
| Name of domestic CPA | Wang Xiaodong, Tu Xiaofeng |
| Continuous life of auditing service for domestic CPA | Wang Xiaodong( 1 year), Tu Xiaofeng (1 year) |
| Name of foreign accounting firm (if applicable) | N/A |
| Remuneration for foreign accounting firm (RMB 10,000) (if applicable) | N/A |
| Continuous life of auditing service for foreign accounting firm (if applicable) | N/A |
| Name of foreign CPA (if applicable) | N/A |
| Continuous life of auditing service for foreign CPA (if applicable) | - |
(ii) Re-appointed accounting firms in this period
□Yes √ No
(iii) Appointment of internal control auditing accounting firm, financial consultant or sponsor
√ Applicable □ Not applicable
In reporting period, Shine Wing Certified Public Accountants (LLP) was appointed as audit institute of internalcontrol for the Company, auditing charge for internal control amounting as 270,000 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
√Applicable □Not applicable
| Basic situation of litigation(arbitration) | Amount involved (Ten thousand yuan) | Whether to form estima | Litigation(arbitration)pro | Litigation(arbitration)trial results and | Implementation of litigation(arbitration | Disclosure date | Disclosure index |
| ted liabilities | gress | impact | )judgments | ||||
| Zhiyijia, an affiliated enterprise of the company, signed a sales contract with the defendant, Tianjin Pengsheng Logistics Co., Ltd. (hereinafter referred to as "Tianjin Pengsheng"). The above contract stipulated that the order confirmation, shipment, reconciliation and settlement would be handled through the ECP platform of Gome Electrical Appliances Co., Ltd. (hereinafter referred to as "Gome Electrical Appliances"). After the contract was signed, Zhiyijia, the plaintiff, supplied the goods to Tianjin Pengsheng, the defendant as agreed, but Tianjin Pengsheng, the defendant, failed to fulfill the payment obligation to Zhiyijia as agreed. As of November 30, 2022, according to the data of Gome's ECP platform, the business expenses payable by Zhiyijia, the newly-increased return amount, etc., Tianjin Pengsheng still owed Zhiyijia a payment of RMB 96,174,308.42. Based on this, Zhiyijia, the plaintiff brought a lawsuit against Tianjin Pengsheng, the defendant to the People's Court of Mianyang High-tech Industrial Development Zone. The defendant Gome is an associated shareholder of Tianjin Pengsheng, and the defendants Dong Xiaohong and Rong Duo are the executive director and supervisor of Tianjin Pengsheng respectively. According to the provisions of relevant laws and regulations, Zhiyijia claims that the aforementioned defendants should be jointly and severally liable for the above debts, and requests the court to order Tianjin Pengsheng to immediately pay the plaintiff RMB 96,174,308.42 and the corresponding liquidated damages for overdue payment, and bear the related litigation costs and property preservation guarantee fees. The Company's shareholding in Zhiyijia is 50%, and the products are sold through Zhiyijia's smart trading platform. The customers, channels and sales transactions corresponding to the products sold are controlled and docked by the company itself, and the external transaction object is Zhiyijia, and related transactions are formed between the Company and Zhiyijia. In terms of payment settlement, the Company and Zhiyijia follow the principle of "external customer account period is Zhiyijia's account period to the Company, and external customer payment is Zhiyijia's payment to the Company, which is not allowed to be remained or transited at Zhiyijia". The amounts involved in this case are all accounts receivable and liquidated damages for overdue payment caused by the Company's sales through the smart trading platform of Zhiyijia, but the subject of the agreement is Zhiyijia, and this lawsuit will be filed by Zhiyijia. The Company and its affiliated enterprise Zhiyijia will claim their legitimate rights and interests according to law and actively take relevant measures to safeguard the legitimate rights and interests of the Company, Zhiyijia and the investors. | 9,617.43 | No | Pre-litigation mediation | No trial result yet | No trial result yet | December 24,2022 | Juchao (www.cninfo.com.cn)(2022-101) |
| Accumulated amount of other litigation that does not meet the disclosure standard of major litigation | 6,474.19 | No | - | - | - | - | - |
XII. Penalty and rectification
□Applicable√Not applicable
During the reporting period, the Company had no Penalty and rectification.
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 hadgood 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
| Serial | Related party | Relationship | Type of related transaction | Content of related transaction | Pricing principle | Related transaction price (in 10 thousand Yuan) | Related transaction amount (in 10 thousand Yuan) | Proportion in similar transactions (%) | Trading limit approved (in 10 thousand Yuan) | Whether over the approved limited or not (Y/N) | Clearing form for related transaction | Available similar market price | Date of disclosure | Index of disclosure |
| 1 | Sichuan Changhong Electric Co., Ltd. | Controlling shareholder | Commodity purchased | Pressure regulator, integrated circuit, transistors, steel plate, plastic parts, etc | Marketing price | 33,985.13 | 33,985.13 | 2.14% | 65,000.00 | No | Spot exchange, Bank acceptance | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.:2021-091,2021-092,2021-094,2021-109,2022-097,2022-098,2022-99. |
| 2 | Changhong Huayi Compressor Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Commodity purchased | Compressor | Marketing price | 45,173.47 | 45,173.47 | 2.85% | 48,000.00 | No | Spot exchange, Bank acceptance | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.;2021-091,2021-092,2021-094,2021-109、2022-097,2022-098,2022-99. |
| 3 | Sichuan Changhong Mold Plastic Tech. Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Commodity purchased | Components, plastic parts and lining accessories etc. | Marketing price | 80,947.69 | 80,947.69 | 5.10% | 100,000.00 | No | Spot exchange, Bank acceptance | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.:2021-091,2021-092,2021-094,2021-109,2022-097,2022-098,2022-99. |
| 4 | Sichuan Changhong | Other enterprise control under the | Commodity purchased | Base plate assembly, black plate, bracket etc. | Marketing price | 45,767.42 | 45,767.42 | 2.88% | 52,000.00 | No | Spot exchange, Bank acceptance | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.:2021-091,2021-092,2021-094,2021- |
| Jijia Fine Co., Ltd. | same controlling shareholder and ultimate controller | 109,2022-097,2022-098,2022-99. | ||||||||||||
| 5 | Sichuan Changhong Package Printing Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Commodity purchased | Packing boxes, foam, fixed support block etc. | Marketing price | 13,066.04 | 13,066.04 | 0.82% | 18,000.00 | No | Bank acceptance | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.:2021-091,2021-092,2021-094,2021-109,2022-097,2022-098,2022-99. |
| 6 | Sichuan Changhong Precision Electronics Tech. Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Commodity purchased | Printed board machine insertion machine paste assembly | Marketing price | 2,570.75 | 2,570.75 | 0.16% | 3,000.00 | No | Bank acceptance | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.:2021-091,2021-092,2021-094,2021-109,2022-097,2022-098,2022-99. |
| 7 | Sichuan Changhong International Hotel Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Commodity purchased | Food | Marketing price | 1.17 | 1.17 | 0.00% | 5,000.00 | NO | Cash settlement | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.:2021-091,2021-092,2021-094,2021-109,2022-097,2022-098,2022-99. |
| 8 | Guangdong Changhong Electronics Co., Ltd. | Other enterprise control under the same controlling | Commodity purchased | Foam and carton | Marketing price | 417.80 | 417.80 | 0.03% | 10,000.00 | No | Spot exchange, Bank acceptance | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.:2021-091,2021-092,2021-094,2021-109,2022-097,2022-098,2022-99. |
| shareholder and ultimate controller | ||||||||||||||
| 9 | Sichuan Changhong Intelligence Manufacturing Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Commodity purchased | Circuit card | Marketing price | 1.62 | 1.62 | 0.00% | 5,000.00 | NO | Cash settlement | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.:2021-091,2021-092,2021-094,2021-109,2022-097,2022-098,2022-99. |
| 10 | Hefei Changhong Industrial Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Commodity purchased | Inverter integrated board | Marketing price | 394.74 | 394.74 | 0.02% | 10,000.00 | No | Bank acceptance | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.:2021-091,2021-092,2021-094,2021-109,2022-097,2022-098,2022-99. |
| 11 | Sichuan Changhong New Energy Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Commodity purchased | Batteries | Marketing price | 4.31 | 4.31 | 0.00% | 5,000.00 | No | Cash settlement | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.:2021-091,2021-092,2021-094,2021-109,2022-097,2022-098,2022-99. |
| 12 | Sichuan Zhiyijia Network Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate | Commodity purchased | Air conditioner, LCD TV | Marketing price | 530.29 | 530.29 | 0.03% | 10,000.00 | No | Cash settlement | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.:2021-091,2021-092,2021-094,2021-109,2022-097,2022-098,2022-99. |
| controller | ||||||||||||||
| 13 | Changhong International Holdings (Hong Kong) Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Commodity purchased | Television | Marketing price | 510.85 | 510.85 | 0.03% | 8,000.00 | No | Cash settlement | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.:2021-091,2021-092,2021-094,2021-109,2022-097,2022-098,2022-99. |
| 14 | Sichuan Changhong Device Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Commodity purchased | printed board | Marketing price | 768.89 | 768.89 | 0.05% | 10,000.00 | No | Bank acceptance | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.:2021-091,2021-092,2021-094,2021-109,2022-097,2022-098,2022-99. |
| 15 | Sichuan Changhong Electronic Products Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Commodity purchased | Remote controls, switching transformers, printed boards, electronic components, etc. | Marketing price | 2,546.79 | 2,546.79 | 0.16% | 3,000.00 | No | Spot exchange, Bank acceptance | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.:2021-091,2021-092,2021-094,2021-109,2022-097,2022-098,2022-99. |
| 16 | Sichuan Jiahong Industrial Co., Ltd | Other enterprise control under the same controlling shareholder and ultimate controller | Commodity purchased | foodstuff | Marketing price | 8.25 | 8.25 | 0.00% | 5,000.00 | No | Cash settlement | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.:2021-091,2021-092,2021-094,2021-109,2022-097,2022-098,2022-99. |
| 17 | Sichuan Ailian Science & Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Commodity purchased | Internet access modules, electronic components, etc | Marketing price | 913.94 | 913.94 | 0.06% | 5,000.00 | No | Spot exchange, Bank acceptance | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.:2021-091,2021-092,2021-094,2021-109,2022-097,2022-098,2022-99. |
| 18 | Sichuan Aichuang Science & Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Commodity purchased | Inverter integrated board | Marketing price | 11,551.33 | 11,551.33 | 0.73% | 13,000.00 | No | Spot exchange, Bank acceptance | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.:2021-091,2021-092,2021-094,2021-109,2022-097,2022-098,2022-99. |
| 19 | Sichuan Service Exp. Appliance Service Chain Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Commodity purchased | Filter element, etc | Marketing price | 0.12 | 0.12 | 0.00% | 10,000.00 | No | Cash settlement | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.:2021-091,2021-092,2021-094,2021-109,2022-097,2022-098,2022-99. |
| 20 | Sichuan Aoku Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Commodity purchased | Power board | Marketing price | 764.15 | 764.15 | 0.05% | 5,000.00 | No | Spot exchange, Bank acceptance | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.:2021-091,2021-092,2021-094,2021-109,2022-097,2022-098,2022-99. |
| 21 | Sichuan Changhong | Controlling shareholder and ultimate | Accept labor service | Shuttle transportation fee, training fee | Marketing price | 195.45 | 195.45 | 0.12% | 5,000.00 | No | Cash settlement | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.:2021-091,2021- |
| Electronics Holding Group Co., Ltd. | controller | 092,2021-094,2021-109,2022-097,2022-098,2022-99. | ||||||||||||
| 22 | Sichuan Changhong Electric Co., Ltd. | Controlling shareholder | Accept labor service | Software usage fee, information consultation fee, inspection and certification fee | Marketing price | 488.25 | 488.25 | 0.29% | 6,000.00 | No | Cash settlement | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.:2021-091,2021-092,2021-094,2021-109,2022-097,2022-098,2022-99. |
| 23 | Sichuan Changhong Minsheng Logistics Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Accept labor service | Transportation costs, storage and handling charges, freight and miscellaneous charges etc. | Marketing price | 61,657.16 | 61,657.16 | 37.06% | 75,000.00 | No | Cash settlement | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.:2021-091,2021-092,2021-094,2021-109,2022-097,2022-098,2022-99. |
| 24 | Sichuan Changhong Mold Plastic Tech. Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Accept labor service | commission processing fee | Marketing price | 2,199.65 | 2,199.65 | 1.32% | 6,000.00 | No | Spot exchange, Bank acceptance | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.:2021-091,2021-092,2021-094,2021-109,2022-097,2022-098,2022-99. |
| 25 | Sichuan Service Exp. Appliance Service Chain Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Accept labor service | Three packages, equipment repair,miscellaneous fees, installation fee etc. | Marketing price | 30,020.77 | 30,020.77 | 18.05% | 32,000.00 | No | Cash settlement | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.:2021-091,2021-092,2021-094,2021-109,2022-097,2022-098,2022-99. |
| 26 | Sichuan Hongxin Software Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Accept labor service | Software usage fee, service supporting fee and information service fee | Marketing price | 1,086.77 | 1,086.77 | 0.65% | 6,000.00 | No | Cash settlement | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.:2021-091,2021-092,2021-094,2021-109,2022-097,2022-098,2022-99. |
| 27 | Guangdong Changhong Electronics Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Accept labor service | Service support fee, network service fee etc. | Marketing price | 122.35 | 122.35 | 0.07% | 6,000.00 | No | Cash settlement | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.:2021-091,2021-092,2021-094,2021-109,2022-097,2022-098,2022-99. |
| 28 | Sichuan Jiahong Industrial Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Accept labor service | Meals, property management fees etc. | Marketing price | 742.16 | 742.16 | 0.45% | 5,000.00 | No | Cash settlement | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.:2021-091,2021-092,2021-094,2021-109,2022-097,2022-098,2022-99. |
| 29 | Sichuan Changhong International Hotel Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Accept labor service | Meetings fee, accommodation | Marketing price | 35.19 | 35.19 | 0.02% | 5,000.00 | No | Cash settlement | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.:2021-091,2021-092,2021-094,2021-109,2022-097,2022-098,2022-99. |
| 30 | Sichuan Changhong Property Services Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Accept labor service | Dormitory facility and equipment service fees, property management fees | Marketing price | 11.45 | 11.45 | 0.01% | 5,000.00 | No | Cash settlement | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.:2021-091,2021-092,2021-094,2021-109,2022-097,2022-098,2022-99. |
| 31 | Sichuan Zhiyijia Network Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Accept labor service | Design service fee and platform usage fee | Marketing price | 15.52 | 15.52 | 0.01% | 6,000.00 | No | Cash settlement | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.:2021-091,2021-092,2021-094,2021-109,2022-097,2022-098,2022-99. |
| 32 | Sichuan Changhong Network Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Accept labor service | Network service | Marketing price | 2.49 | 2.49 | 0.00% | 6,000.00 | No | Cash settlement | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.:2021-091,2021-092,2021-094,2021-109,2022-097,2022-098,2022-99. |
| 33 | Sichuan Changhong Intelligent Manufacturing Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Accept labor service | test modification fee | Marketing price | 7.31 | 7.31 | 0.00% | 5,000.00 | N | Bank acceptance | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.:2021-091,2021-092,2021-094,2021-109,2022-097,2022-098,2022-99. |
| 34 | Sichuan Changhong | Other enterprise | Accept labor | commission | Marketin | 1,067.19 | 1,067.19 | 0.64% | 6,000.00 | N | Bank | - | December 7, 2021, December 24,2021, | Juchao Website（www.cninfo.com.cn） |
| Jijia Fine Co., Ltd. | control under the same controlling shareholder and ultimate controller | service | processing fee | g price | acceptance | December 17,2022 | No.:2021-091,2021-092,2021-094,2021-109,2022-097,2022-098,2022-99. | |||||||
| 35 | Sichuan Changhong Gerun Environmental protection Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Accept labor service | Environmental protection service | Marketing price | 5.97 | 5.97 | 0.00% | 5,000.00 | No | Cash settlement | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.:2021-091,2021-092,2021-094,2021-109,2022-097,2022-098,2022-99. |
| 36 | Sichuan Aichuang Science & Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Accept labor service | Labor dispatch fee, R&D test fees | Marketing price | 106.98 | 106.98 | 0.06% | 5,000.00 | No | Cash settlement | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.:2021-091,2021-092,2021-094,2021-109,2022-097,2022-098,2022-99. |
| 37 | Sichuan Qiruike Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Accept labor service | Technology development service fee, instrument repair fee, inspection and certification fee, etc. | Marketing price | 852.55 | 852.55 | 0.51% | 5,000.00 | No | Cash settlement | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.:2021-091,2021-092,2021-094,2021-109,2022-097,2022-098,2022-99. |
| 38 | Sichuan Changhong Electronic Products Co., Ltd. | Other enterprise control under the same controlling | Accept labor service | Labor dispatch fee | Marketing price | 8.17 | 8.17 | 0.00% | 6,000.00 | No | Cash settlement | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.:2021-091,2021-092,2021-094,2021-109,2022-097,2022- |
| shareholder and ultimate controller | 098,2022-99. | |||||||||||||
| 39 | Sichuan Changhong Electric Co., Ltd. | Controlling shareholder | Sales of goods | Kitchen and bathroom and small appliances | Marketing price | 138.77 | 138.77 | 0.01% | 1,500.00 | No | Spot exchange, Bank acceptance | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.:2021-091,2021-092,2021-094,2021-109,2022-097,2022-098,2022-99. |
| 40 | Sichuan Changhong Electronics Holding Group Co., Ltd. | Controlling shareholder and ultimate controller | Sales of goods | Air-conditioning | Marketing price | 42.38 | 42.38 | 0.00% | 2,500.00 | No | Cash settlement | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.:2021-091,2021-092,2021-094,2021-109,2022-097,2022-098,2022-99. |
| 41 | Sichuan Changhong Jijia Fine Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | Air-conditioning, frozen foam cabinet body | Marketing price | 6.20 | 6.20 | 0.00% | 10,000.00 | No | Cash settlement | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.:2021-091,2021-092,2021-094,2021-109,2022-097,2022-098,2022-99. |
| 42 | Sichuan Changhong Mold Plastic Tech. Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | Plastic parts | Marketing price | 68.44 | 68.44 | 0.00% | 31,000.00 | No | Cash settlement | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.:2021-091,2021-092,2021-094,2021-109,2022-097,2022-098,2022-99. |
| 43 | Lejiayi Chain Management Co., Ltd. | Other enterprise control under the | Sales of goods | Small appliances, Refrigerator and air conditioner | Marketing price | 125.36 | 125.36 | 0.01% | 5,000.00 | No | Cash settlement | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.:2021-091,2021-092,2021-094,2021- |
| same controlling shareholder and ultimate controller | 109,2022-097,2022-098,2022-99. | |||||||||||||
| 44 | Sichuan Zhiyijia Network Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | washing machine,Refrigerator,freezer,Air conditioner,small appliances | Marketing price | 683,520.47 | 683,520.47 | 34.11% | 740,000.00 | No | Spot exchange, Bank acceptance | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.:2021-091,2021-092,2021-094,2021-109,2022-097,2022-098,2022-99. |
| 45 | Sichuan Changhong Device Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | Small appliances, water, electricity, compressed air, etc | Marketing price | 10.46 | 10.46 | 0.00% | 5,000.00 | No | Cash settlement | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.:2021-091,2021-092,2021-094,2021-109,2022-097,2022-098,2022-99. |
| 46 | Sichuan Changhong Minsheng Logistics Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | Air conditioner,Refrigerator | Marketing price | 254.19 | 254.19 | 0.01% | 5,000.00 | No | Cash settlement | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.:2021-091,2021-092,2021-094,2021-109,2022-097,2022-098,2022-99. |
| 47 | Sichuan Service Exp. Appliance | Other enterprise control under the same controlling | Sales of goods | Air conditioners,inverter integrated boards, components etc. | Marketing price | 704.59 | 704.59 | 0.04% | 5,000.00 | No | Cash settlement | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.:2021-091,2021-092,2021-094,2021-109,2022-097,2022-098,2022-99. |
| Service Chain Co., Ltd. | shareholder and ultimate controller | |||||||||||||
| 48 | Sichuan Huafeng Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | Air conditioner | Marketing price | 35.31 | 35.31 | 0.00% | 2,500.00 | No | Cash settlement | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.:2021-091,2021-092,2021-094,2021-109,2022-097,2022-098,2022-99. |
| 49 | Sichuan Changhong Real Estate Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | Air conditioner | Marketing price | 9.72 | 9.72 | 0.00% | 5,000.00 | No | Cash settlement | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.:2021-091,2021-092,2021-094,2021-109,2022-097,2022-098,2022-99. |
| 50 | Guangdong Changhong Electronics Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | small appliances, Air conditioner | Marketing price | 10.59 | 10.59 | 0.00% | 5,000.00 | No | Cash settlement | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.:2021-091,2021-092,2021-094,2021-109,2022-097,2022-098,2022-99. |
| 51 | Sichuan Aoku Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate | Sales of goods | Air conditioner | Marketing price | 23.01 | 23.01 | 0.00% | 2,500.00 | No | Cash settlement | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.:2021-091,2021-092,2021-094,2021-109,2022-097,2022-098,2022-99. |
| controller | ||||||||||||||
| 52 | Changhong Huayi Compressor Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | Air conditioner | Marketing price | 7.26 | 7.26 | 0.00% | 48,000.00 | No | Cash settlement | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.:2021-091,2021-092,2021-094,2021-109,2022-097,2022-098,2022-99. |
| 53 | Guangyuan Changhong Electronic Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | Air conditioner,Kitchen and bathroom,small appliances | Marketing price | 15.00 | 15.00 | 0.00% | 5,000.00 | No | Cash settlement | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.:2021-091,2021-092,2021-094,2021-109,2022-097,2022-098,2022-99. |
| 54 | Sichuan Hongxin Software Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | small appliances | Marketing price | 0.11 | 0.11 | 0.00% | 5,000.00 | No | Cash settlement | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.:2021-091,2021-092,2021-094,2021-109,2022-097,2022-098,2022-99. |
| 55 | CHANGHONG(HK)TRADINGLIMITED | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | Air conditioner | Marketing price | 35,986.86 | 35,986.86 | 1.80% | 130,000.00 | No | Cash settlement | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.:2021-091,2021-092,2021-094,2021-109,2022-097,2022-098,2022-99. |
| 56 | CHANGHONGELECTRIC(AUSTRALIA)PTY.LTD. | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | Refrigerator,freezers and accessories | Marketing price | 16,831.82 | 16,831.82 | 0.84% | 130,000.00 | No | Cash settlement | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.:2021-091,2021-092,2021-094,2021-109,2022-097,2022-098,2022-99. |
| 57 | Orion.PDP.Co.,ltd | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | Refrigerator | Marketing price | 5,156.73 | 5,156.73 | 0.26% | 5,400.00 | No | Cash settlement | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.:2021-091,2021-092,2021-094,2021-109,2022-097,2022-098,2022-99. |
| 58 | ChanghongEuropeElectrics.r.o | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | Refrigerator | Marketing price | 1,376.83 | 1,376.83 | 0.07% | 10,000.00 | No | Cash settlement | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.:2021-091,2021-092,2021-094,2021-109,2022-097,2022-098,2022-99. |
| 59 | CHANGHONGELECTRICMIDDLEEASTFZCO | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | Refrigerator,freezers and accessories | Marketing price | 1,725.97 | 1,725.97 | 0.09% | 5,000.00 | No | Cash settlement | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.:2021-091,2021-092,2021-094,2021-109,2022-097,2022-098,2022-99. |
| 60 | Changhong International | Other enterprise | Sales of | Refrigerator,freezers,Air | Marketin | 10,146.95 | 10,146.95 | 0.51% | 35,000.00 | No | Cash | - | December 7, 2021, December 24,2021, | Juchao Website（www.cninfo.com.cn） |
| Holdings (Hong Kong) Co., Ltd. | control under the same controlling shareholder and ultimate controller | goods | conditioner, kitchen utensils | g price | settlement | December 17,2022 | No.:2021-091,2021-092,2021-094,2021-109,2022-097,2022-098,2022-99. | |||||||
| 61 | Sichuan Aichuang Science & Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | Kitchen and bathroom and small appliances | Marketing price | 2.19 | 2.19 | 0.00% | 2,500.00 | No | Cash settlement | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.:2021-091,2021-092,2021-094,2021-109,2022-097,2022-098,2022-99. |
| 62 | Yuanxin Finance lease Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | Air conditioner | Marketing price | 245.87 | 245.87 | 0.01% | 5,000.00 | No | Cash settlement | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.:2021-091,2021-092,2021-094,2021-109,2022-097,2022-098,2022-99. |
| 63 | Sichuan Ansifei Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | Air conditioner | Marketing price | 2.42 | 2.42 | 0.00% | 2,500.00 | No | Cash settlement | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.:2021-091,2021-092,2021-094,2021-109,2022-097,2022-098,2022-99. |
| 64 | Sichuan Qiruike Technology Co., Ltd. | Other enterprise control under the | Sales of goods | Kitchen and bathroom and small appliances | Marketing price | 0.31 | 0.31 | 0.00% | 2,500.00 | No | Cash settlement | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.:2021-091,2021-092,2021-094,2021- |
| same controlling shareholder and ultimate controller | 109,2022-097,2022-098,2022-99. | |||||||||||||
| 65 | Sichuan Changhong Electronics Holding Group Co., Ltd. | Controlling shareholder and ultimate controller | Providing services | Installation service | Marketing price | 31.20 | 31.20 | 0.70% | 2,500.00 | No | Cash settlement | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.:2021-091,2021-092,2021-094,2021-109,2022-097,2022-098,2022-99. |
| 66 | Sichuan Changhong Mold Plastic Tech. Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Providing services | Labor cost | Marketing price | 33.90 | 33.90 | 0.76% | 6,000.00 | No | Cash settlement | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.:2021-091,2021-092,2021-094,2021-109,2022-097,2022-098,2022-99. |
| 67 | Sichuan Changhong Jijia Fine Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Providing services | Labor cost | Marketing price | 8.32 | 8.32 | 0.19% | 6,000.00 | No | Cash settlement | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.:2021-091,2021-092,2021-094,2021-109,2022-097,2022-098,2022-99. |
| 68 | Sichuan Aichuang Science & Technology Co., Ltd. | Other enterprise control under the same controlling shareholder | Providing services | Technical service fee,Labor cost | Marketing price | -24.22 | -24.22 | -0.54% | 2,500.00 | No | Cash settlement | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.:2021-091,2021-092,2021-094,2021-109,2022-097,2022-098,2022-99. |
| and ultimate controller | ||||||||||||||
| 69 | Sichuan Huafeng Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Providing services | Labor cost | Marketing price | 44.28 | 44.28 | 0.99% | 2,500.00 | No | Cash settlement | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.:2021-091,2021-092,2021-094,2021-109,2022-097,2022-098,2022-99. |
| 70 | Sichuan Zhiyijia Network Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Providing services | Service fee | Marketing price | 95.27 | 95.27 | 2.13% | 6,000.00 | No | Cash settlement | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.:2021-091,2021-092,2021-094,2021-109,2022-097,2022-098,2022-99. |
| 71 | Sichuan Changhong Electric Co., Ltd. | Controlling shareholder | Providing services | Labor cost | Marketing price | 227.18 | 227.18 | 5.08% | 6,000.00 | No | Cash settlement | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.:2021-091,2021-092,2021-094,2021-109,2022-097,2022-098,2022-99. |
| 72 | Sichuan Changhong Device Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Providing services | Technical service fee | Marketing price | 9.38 | 9.38 | 0.21% | 6,000.00 | No | Cash settlement | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.:2021-091,2021-092,2021-094,2021-109,2022-097,2022-098,2022-99. |
| 73 | Mianyang Huafeng Hulian Technology | Other enterprise control | Providing services | Repair Service | Marketing price | 8.82 | 8.82 | 0.20% | 2,500.00 | No | Cash settlement | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.:2021-091,2021- |
| Co., Ltd. | under the same controlling shareholder and ultimate controller | 092,2021-094,2021-109,2022-097,2022-098,2022-99. | ||||||||||||
| 74 | Changhong Huayi Compressor Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Providing services | Technical service fee | Marketing price | 204.96 | 204.96 | 4.58% | 500.00 | No | Cash settlement | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.:2021-091,2021-092,2021-094,2021-109,2022-097,2022-098,2022-99. |
| 75 | Sichuan Changhong Minsheng Logistics Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Providing services | Labor cost | Marketing price | 21.58 | 21.58 | 0.48% | 6,000.00 | No | Cash settlement | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.:2021-091,2021-092,2021-094,2021-109,2022-097,2022-098,2022-99. |
| 76 | Hefei Changhong Industrial Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Providing services | Labor cost | Marketing price | 0.35 | 0.35 | 0.01% | 6,000.00 | No | Cash settlement | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.:2021-091,2021-092,2021-094,2021-109,2022-097,2022-098,2022-99. |
| 77 | Sichuan Service Exp. Appliance Service Chain Co., Ltd. | Other enterprise control under the same | Providing services | Labor cost | Marketing price | 197.79 | 197.79 | 4.42% | 6,000.00 | No | Cash settlement | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.:2021-091,2021-092,2021-094,2021-109,2022-097,2022- |
| controlling shareholder and ultimate controller | 098,2022-99. | |||||||||||||
| 78 | Sichuan Aoku Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Providing services | Labor cost | Marketing price | 15.62 | 15.62 | 0.35% | 2,500.00 | No | Cash settlement | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.:2021-091,2021-092,2021-094,2021-109,2022-097,2022-098,2022-99. |
| 79 | Sichuan Changhong International Hotel Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Providing services | Maintenance fees | Marketing price | 3.46 | 3.46 | 0.08% | 2,500.00 | No | Cash settlement | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.:2021-091,2021-092,2021-094,2021-109,2022-097,2022-098,2022-99. |
| 80 | 081 Electronic Group Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | provide labor | Maintenance fee | Marketing price | 9.31 | 9.31 | 0.21% | 6,000.00 | No | Cash settlement | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.:2021-091,2021-092,2021-094,2021-109,2022-097,2022-098,2022-99. |
| 81 | Sichuan Changhong Electronic Products Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | provide labor | Labor costs | Marketing price | 0.36 | 0.36 | 0.01% | 6,000.00 | No | Cash settlement | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.:2021-091,2021-092,2021-094,2021-109,2022-097,2022-098,2022-99. |
| 82 | Sichuan Qiruike Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Providing services | Labor cost | Marketing price | 0.13 | 0.13 | 0.00% | 2,500.00 | No | Cash settlement | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.:2021-091,2021-092,2021-094,2021-109,2022-097,2022-098,2022-99. |
| 83 | Guangyuan Hongcheng Industrial Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Providing services | Labor cost | Marketing price | 4.59 | 4.59 | 0.10% | 2,500.00 | No | Cash settlement | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.:2021-091,2021-092,2021-094,2021-109,2022-097,2022-098,2022-99. |
| 84 | Sichuan Changhong Precision Electronics Technology Co., Ltd | Other enterprise control under the same controlling shareholder and ultimate controller | Providing services | Labor cost | Marketing price | 0.41 | 0.41 | 0.01% | 6,000.00 | No | Cash settlement | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.:2021-091,2021-092,2021-094,2021-109,2022-097,2022-098,2022-99. |
| 85 | Yuanxin Finance Lease Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Providing services | Financing service, etc | Marketing price | 284.32 | 284.32 | 6.36% | 6,000.00 | No | Cash settlement | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.:2021-091,2021-092,2021-094,2021-109,2022-097,2022-098,2022-99. |
| 86 | Sichuan Changhong | Other enterprise | Providing | Technical service | Marketin | 17.16 | 17.16 | 0.38% | 2,500.00 | No | Cash | - | December 7, 2021, December 24,2021, | Juchao Website（www.cninfo.com.cn） |
| Property Service Co., Ltd. | control under the same controlling shareholder and ultimate controller | services | fee | g price | settlement | December 17,2022 | No.:2021-091,2021-092,2021-094,2021-109,2022-097,2022-098,2022-99. | |||||||
| 87 | Sichuan Ansifei Technology Co.,Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Providing services | Installation service | Marketing price | -0.27 | -0.27 | -0.01% | 2,500.00 | No | Cash settlement | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.:2021-091,2021-092,2021-094,2021-109,2022-097,2022-098,2022-99. |
| 88 | Sichuan Changhong Jiechuang Lithium Battery Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Providing services | Labor cost | Marketing price | 5.73 | 5.73 | 0.13% | 2,500.00 | No | Cash settlement | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.:2021-091,2021-092,2021-094,2021-109,2022-097,2022-098,2022-99. |
| 89 | Sichuan Hongwei Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Providing services | Technical service fee | Marketing price | 4.65 | 4.65 | 0.10% | 6,000.00 | No | Cash settlement | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.:2021-091,2021-092,2021-094,2021-109,2022-097,2022-098,2022-99. |
| 90 | Guangdong Changhong Electronics Co., Ltd. | Other enterprise control under the | Provide fuel power | Installation service | Marketing price | 81.98 | 81.98 | 1.83% | 6,000.00 | No | Cash settlement | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.:2021-091,2021-092,2021-094,2021- |
| same controlling shareholder and ultimate controller | 109,2022-097,2022-098,2022-99. | |||||||||||||
| 91 | Guangdong Changhong Electronics Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Rent to the related party | Lodging house | Marketing price | 1.42 | 1.42 | 0.01% | 4,000.00 | No | Cash settlement | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.:2021-091,2021-092,2021-094,2021-109,2022-097,2022-098,2022-99. |
| 92 | Hefei Changhong Industrial Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Rent to the related party | Rental apartment,warehouses | Marketing price | 61.26 | 61.26 | 0.54% | 4,000.00 | No | Cash settlement | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.:2021-091,2021-092,2021-094,2021-109,2022-097,2022-098,2022-99. |
| 93 | Sichuan Aichuang Science & Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Rent to the related party | Warehouse for rent | Marketing price | 6.00 | 6.00 | 0.05% | 2,500.00 | No | Cash settlement | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.:2021-091,2021-092,2021-094,2021-109,2022-097,2022-098,2022-99. |
| 94 | Sichuan Ailian Science & Technology Co., Ltd. | Other enterprise control under the same controlling | Rent to the related party | Warehouse for rent | Marketing price | 0.19 | 0.19 | 0.00% | 2,500.00 | No | Cash settlement | - | December 7, 2021, December 24,2021, December 17,2022 | （www.cninfo.com.cn）2021-091、2021-092、2021-094、2021-109、2022-097、2022-098、2022-99 |
| shareholder and ultimate controller | ||||||||||||||
| 95 | Sichuan Aoku Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Rent to the related party | Warehouse for rent | Marketing price | 0.95 | 0.95 | 0.01% | 2,500.00 | No | Cash settlement | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.:2021-091,2021-092,2021-094,2021-109,2022-097,2022-098,2022-99. |
| 96 | Sichuan Service Exp. Appliance Service Chain Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Rent to the related party | Rental apartment,office | Marketing price | 18.46 | 18.46 | 0.16% | 4,000.00 | No | Cash settlement | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.:2021-091,2021-092,2021-094,2021-109,2022-097,2022-098,2022-99. |
| 97 | Sichuan Qiruike Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Rent to the related party | Lease of factory | Marketing price | 4.73 | 4.73 | 0.04% | 2,500.00 | No | Cash settlement | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.:2021-091,2021-092,2021-094,2021-109,2022-097,2022-098,2022-99. |
| 98 | Sichuan Changhong Electric Co., Ltd. | Controlling shareholder | Rent to the related party | Lease of factory,equipment | Marketing price | 178.68 | 178.68 | 1.58% | 4,000.00 | No | Cash settlement | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.:2021-091,2021-092,2021-094,2021-109,2022-097,2022-098,2022-99. |
| 99 | Sichuan Changhong | Controlling shareholder | Lease from related | Lease of factory | Marketing price | 1.96 | 1.96 | 0.02% | 2,500.00 | No | Cash settlement | - | December 7, 2021, December 24,2021, | Juchao Website（www.cninfo.com.cn） |
| Electronics Holding Group Co., Ltd. | and ultimate controller | parties | December 17,2022 | No.:2021-091,2021-092,2021-094,2021-109,2022-097,2022-098,2022-99. | ||||||||||
| 100 | Sichuan Changhong Jijia Fine Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Rent to the related party | Rental apartment,warehouses,plants,equipment | Marketing price | 450.21 | 450.21 | 3.99% | 4,000.00 | No | Cash settlement | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.:2021-091,2021-092,2021-094,2021-109,2022-097,2022-098,2022-99. |
| 101 | Sichuan Changhong Precision Electronics Tech. Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Rent to the related party | Serviced apartment, living quarters | Marketing price | 14.76 | 14.76 | 0.13% | 4,000.00 | No | Cash settlement | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.:2021-091,2021-092,2021-094,2021-109,2022-097,2022-098,2022-99. |
| 102 | Sichuan Changhong Minsheng Logistics Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Rent to the related party | Serviced apartment, office, etc. | Marketing price | 23.48 | 23.48 | 0.21% | 4,000.00 | No | Cash settlement | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.:2021-091,2021-092,2021-094,2021-109,2022-097,2022-098,2022-99. |
| 103 | Sichuan Changhong Mold Plastic Tech. Co., Ltd. | Other enterprise control under the same controlling shareholder | Rent to the related party | Rental of living quarters apartments, warehouse, workshop, equipment and living quarters | Marketing price | 888.39 | 888.39 | 7.87% | 4,000.00 | No | Cash settlement | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.:2021-091,2021-092,2021-094,2021-109,2022-097,2022-098,2022-99. |
| and ultimate controller | ||||||||||||||
| 104 | Sichuan Changhong Device Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Rent to the related party | Lease of factory | Marketing price | 214.71 | 214.71 | 1.90% | 4,000.00 | No | Cash settlement | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.:2021-091,2021-092,2021-094,2021-109,2022-097,2022-098,2022-99. |
| 105 | Sichuan Zhiyijia Network Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Rent to the related party | Rental apartment | Marketing price | 18.83 | 18.83 | 0.17% | 4,000.00 | No | Cash settlement | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.:2021-091,2021-092,2021-094,2021-109,2022-097,2022-098,2022-99. |
| 106 | Chonghong Huayi Compressor Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Leasing from related party | Lease of workshop | Marketing price | 0.45 | 0.45 | 0.00% | 500.00 | No | Cash settlement | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.:2021-091,2021-092,2021-094,2021-109,2022-097,2022-098,2022-99. |
| 107 | Chengdu Changhong Electronic Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Leasing from related party | Leasing office | Marketing price | 71.39 | 71.39 | 0.63% | 4,000.00 | No | Cash settlement | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.:2021-091,2021-092,2021-094,2021-109,2022-097,2022-098,2022-99. |
| 108 | Guangdong Changhong Electronics Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Leasing from related party | Lease of staff dormitory, plant | Marketing price | 114.01 | 114.01 | 1.01% | 4,000.00 | No | Cash settlement | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.:2021-091,2021-092,2021-094,2021-109,2022-097,2022-098,2022-99. |
| 109 | Hefei Changhong Industrial Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Leasing from related party | lease of plant | Marketing price | 192.77 | 192.77 | 1.71% | 4,000.00 | No | Cash settlement | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.:2021-091,2021-092,2021-094,2021-109,2022-097,2022-098,2022-99. |
| 110 | Sichuan Jiahong Industrial Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Leasing from related party | Lease of staff dormitory | Marketing price | 49.92 | 49.92 | 0.44% | 5,000.00 | No | Cash settlement | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.:2021-091,2021-092,2021-094,2021-109,2022-097,2022-098,2022-99. |
| 111 | Sichuan Changhong Electric Co., Ltd. | Controlling shareholder | Leasing from related party | Lease of laboratory and workshop | Marketing price | 362.45 | 362.45 | 3.21% | 4,000.00 | No | Cash settlement | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.:2021-091,2021-092,2021-094,2021-109,2022-097,2022-098,2022-99. |
| 112 | Sichuan Changhong Electronics Holding Group Co., | Controlling shareholder and ultimate controller | Leasing from related party | Lease shop | Marketing price | 12.75 | 12.75 | 0.11% | 5,000.00 | No | Cash settlement | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.:2021-091,2021-092,2021-094,2021-109,2022-097,2022-098,2022-99. |
| Ltd. | ||||||||||||||
| 113 | Changhong Huayi Compressor Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Leasing from related party | Lease of staff dormitory | Marketing price | 14.05 | 14.05 | 0.12% | 500.00 | No | Cash settlement | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.:2021-091,2021-092,2021-094,2021-109,2022-097,2022-098,2022-99. |
| 114 | Sichuan Changhong Intelligent Manufacturing Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Purchase and construction of fixed assets | assembly line body | Marketing price | 53.68 | 53.68 | 0.18% | 3,000.00 | No | Spot exchange, Bank acceptance | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.:2021-091,2021-092,2021-094,2021-109,2022-097,2022-098,2022-99. |
| 115 | Sichuan Changhong Electric Co., Ltd. | Controlling shareholder | Purchase and construction of fixed assets | Relocation and transformation of equipment | Marketing price | 140.00 | 140.00 | 0.48% | 1,500.00 | No | Cash settlement | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.:2021-091,2021-092,2021-094,2021-109,2022-097,2022-098,2022-99. |
| 116 | Sichuan Hongxin Software Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Purchase and construction of fixed assets | Knowledge management, integration and functional improvement projects | Marketing price | 566.84 | 566.84 | 1.93% | 1,500.00 | No | Cash settlement | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.:2021-091,2021-092,2021-094,2021-109,2022-097,2022-098,2022-99. |
| 117 | Sichuan Hongxin Software Co., Ltd. | Other enterprise control under the | Purchase Intangible assets | Information management | Marketing price | 125.49 | 125.49 | 0.43% | 1,500.00 | No | Cash settlement | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.:2021-091,2021-092,2021-094,2021-109,2022-097,2022- |
| same controlling shareholder and ultimate controller | 098,2022-99. | |||||||||||||
| 118 | Sichuan Zhiyijia Network Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Purchase of fixed assets | Self use TV | Marketing price | 2.24 | 2.24 | 0.01% | 1,500.00 | No | Cash settlement | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.:2021-091,2021-092,2021-094,2021-109,2022-097,2022-098,2022-99. |
| 119 | Sichuan Changhong Electronics Holding Group Co., Ltd. | Controlling shareholder and ultimate controller | Purchase and construction of fixed assets | Fire upgrades | Marketing price | 226.42 | 226.42 | 0.77% | 5,000.00 | No | Cash settlement | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.:2021-091,2021-092,2021-094,2021-109,2022-097,2022-098,2022-99. |
| 120 | Guangdong Changhong Electronics Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Purchase of fixed assets | Self use TV | Marketing price | 0.18 | 0.18 | 0.00% | 1,500.00 | No | Cash settlement | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.:2021-091,2021-092,2021-094,2021-109,2022-097,2022-098,2022-99. |
| 121 | Mianyang Science & Technology City Big Data Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Purchase and construction of fixed assets | Plant construction | Marketing price | 45.04 | 45.04 | 0.15% | 1,500.00 | No | Cash settlement | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.:2021-091,2021-092,2021-094,2021-109,2022-097,2022-098,2022-99. |
| 122 | Sichuan Changhong Jiahua Information cO., ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Purchase fixed assets | Sevicer | Marketing price | 39.43 | 39.43 | 0.13% | 1,500.00 | No | Cash settlement | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.:2021-091,2021-092,2021-094,2021-109,2022-097,2022-098,2022-99. |
| 123 | Sichuan Qiruike Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Purchase of fixed assets | laboratory equipment | Marketing price | 6.56 | 6.56 | 0.02% | 5,000.00 | No | Cash settlement | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.:2021-091,2021-092,2021-094,2021-109,2022-097,2022-098,2022-99. |
| 124 | Sichuan Aoku Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Sale of fixed assets | Computers, monitors, current probes, etc. | Marketing price | 12.10 | 12.10 | 1.19% | 2,500.00 | No | Cash settlement | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.:2021-091,2021-092,2021-094,2021-109,2022-097,2022-098,2022-99. |
| 125 | Yuanxin Financial Lease Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Financing business | Financing business | Marketing price | 40,942.87 | 40,942.87 | -- | 82,000.00 | No | Cash settlement | - | December 7, 2021, December 24,2021, December 17,2022 | Juchao Website（www.cninfo.com.cn）No.:2021-091,2021-092,2021-094,2021-109,2022-097,2022-098,2022-99. |
| Total | -- | -- | 1,141,146.87 | -- | -- | -- | -- | -- | -- | -- | ||||
| Detail of sales return with major amount involved | Not applicable | |||||||||||||
| Report the actual implementation of the daily related transactions which were projected about their total amount by types during the reporting period (if applicable) | 1 It is estimated that the related transaction amount resulted by purchasing goods (including door shell and plastic products etc.) and accepting fuel and power from Sichuan Changhong and its subsidiary by the Company for year of 2022 was 2590 million yuan at most (tax-excluded), actually 1,815.0651 million yuan occurred in reporting period. |
| 2. It is estimated that the related transaction amount resulted by purchasing compressors, Sell goods, accept or provide services with Changhong Huayi and its subsidiary by the Company for year of 2022 was 485 million yuan at most (tax-excluded), actually 454.0019 million yuan occurred in reporting period. | |
| 3. It is estimated that the related transaction amount resulted by purchasing or selling equipment, software, maintenance and spare parts and molds etc. from Sichuan Changhong and its subsidiary by the Company for year of 2022 was 15 million yuan at most (tax-excluded), actually 9.1922 million yuan occurred in reporting period. | |
| 4. It is estimated that the related transaction amount resulted by selling goods and providing fuel and power to Sichuan Changhong and its subsidiary by the Company for year of 2022 was 9,625 million yuan at most (tax-excluded), actually 7,511.782 million yuan occurred in reporting period. | |
| 5. It is estimated that the related transaction amount resulted by leasing business to Sichuan Changhong and its subsidiary by the Company for year of 2022 was 40 million yuan at most (tax-excluded), actually 26.1082 million yuan occurred in reporting period. | |
| . It is estimated that the related transaction amount from domestic finished goods logistic business outsourcing to Sichuan Changhong Minsheng Logistics Co., Ltd. by the Company for year of 2022 was 750 million yuan at most (tax-excluded), actually 616.5716 million yuan occurred in reporting period. | |
| 7. It is estimated that the related transaction amount from after sales service of domestic goods outsourcing to Sichuan Service Exp. Appliance Service Chain Co., Ltd. by the Company for year of 2022 was 320 million yuan at most actually 300.2077 million yuan occurred in reporting period. | |
| 8. It is estimated that the related transaction amount resulted by accepting other service and labor service etc. or providing other service and labor service etc. to Sichuan Changhong and its subsidiary by the Company for year of 2022 was 60 million yuan at most (tax-excluded), actually 59.6519 million yuan occurred in reporting period. | |
| 9. It is estimated that the related transaction amount resulted by selling goods and leasing business from Sichuan Changhong Electronics Holding Group Co., Ltd and its subsidiary by the Company for year of 2022 was 79 million yuan at most (tax-excluded), actually 53.9478 million yuan occurred in reporting period. | |
| 10. It is estimated that the related transaction amount resulted by purchasing goods and receiving labor services, fuel power, leasing and purchasing equipment etc. from Sichuan Changhong Electronics Holding Group Co., Ltd. and its subsidiary by the Company for year of 2022 was 260 million yuan at most (tax-excluded), actually 155.5116 million yuan occurred in reporting period. | |
| 11. It is estimated that the related transaction amount resulted by received the financing lease, commercial factoring and bill financing from Yuanxin Financial Lease Co., Ltd was 82 million yuan at most, actually 409.4287 million yuan occurred in reporting period. |
| Reasons for major differences between trading price and market reference price (if applicable) | Not applicable |
(ii) Related transactions by assets acquisition and sold
□Applicable √ Not applicable
There are no related transactions by assets acquisition and sold in the period(iii) Related party transaction of joint foreign investment
√Applicable □Not applicable
| Co-investor | Association | Name of the invested enterprise | Main business of the invested enterprise | Registered capital of the invested enterprise | Total assets of the invested enterprise (RMB '0,000) | Net assets of the invested enterprise (RMB '0,000) | Net profit of the invested enterprise (RMB '0,000) | |
| Sichuan Changhong Electronic (Group) Co., Ltd., Sichuan Changhong Electric Co.,Ltd., Sichuan Shenwan Hongyuan Changhong Equity Investment Management Co., Ltd., Guangdong Changhong Electronics Co., Ltd., Sichuan Qiruike Technology Co., Ltd., Sichuan Changhong Power Supply Co., Ltd., Sichuan Changhong New Energy Technology Co., Ltd., Changhong Sanjie New Energy Co., Ltd., Sichuan Changhong Green Environmental Science and Technology Co., Ltd., Yibin Red-star Electronics Co., Ltd., Sichuan Changhong Digital Technology Co., Ltd., and Changhong Huayi Compressor Co.,Ltd. | Controlling shareholder and ultimate controller, other enterprises controlled by the same controlling shareholder and ultimate controller, and listed companies with natural persons as directors | Changhong Group Sichuan Shenwan Hongyuan Strategic New Industry Parent Fund Partnership (Limited Partnership) | Engagement in equity investment, investment management, asset management and other activities with private equity funds (registration and filing must be completed in Asset Management Association of China before the engagement in business activities). | 1,500 million | 26,035.12 | 26,033.24 | 33.24 | |
| Progress of major projects under construction of the invested enterprise (if any) | N/A | |||||||
(iv) Connect of related liability and debt
√ Applicable □ Not applicable
Whether has non-operational contact of related liability and debts or not
□Yes √ No
No non-operational contact of related liability or debts in Period(v) Contact with the related finance companies
√ Applicable □ Not applicable
Deposit business
| Related party | Relationship | Maximum daily deposit limit (In 10 thousand yuan) | Deposit interest rate range | Opening balance (In 10 thousand yuan) | Amount for the Period | Ending Balance (10 thousand yuan) | |
| Total deposit amount for the Period (10 thousand yuan) | The total amount withdrawn in the Period (10 thousand yuan) | ||||||
| Sichuan Changhong Group Finance Co., Ltd. | Other enterprises controlled by the same controlling shareholder and ultimate controller | 450,000.00 | 0.42%-3.60% | 338,508.69 | 3,356,249.10 | 3,348,257.80 | 346,499.99 |
Credit extension or other financial business
| Related party | Relationship | Type of business | Total amount ( 10 thousand yuan) | Actual amount ( 10 thousand yuan) |
| Sichuan Changhong Group Finance Co., Ltd. | Other enterprises controlled by the same controlling shareholder and ultimate controller | Other financial services - note issuance | 300,000.00 | 143,104.99 |
| Sichuan Changhong Group Finance Co., Ltd. | Other enterprises controlled by the same controlling shareholder and ultimate controller | Other financial services - note discounting | 300,000.00 | 7,383.69 |
Note 1: After deliberated and approved by the 27
th session of 9
th
BOD and 3
rd
extraordinary shareholders generalmeeting of 2019 held on 10 September 2019 and 27 September, it is agreed that the company and its related party,Changhong Huayi Compressor Co., Ltd. (hereinafter referred to as "Changhong Huayi"), respectively, will increasethe capital to Changhong Finance Company by 500 million yuan with its own funds, the total capital increase willnot exceed one billion yuan. After capital increased, registered capital of Changhong Finance Company changed to2,693,938,365.84 yuan. The Company and Changhong Huayi holds 14.96% equity of Chonghong Finance Companyrespectively, and controlling shareholder of the Company -Sichuan Changhong Electric Co., Ltd and its controllingshareholder Sichuan Changhong Electronics Holding Group Co., Ltd holds 35.04% equity of Changhong FinanceCompany respectively.Note 2: After deliberated and approved by the 41
st
session of 9
th
BOD and 4
th
extraordinary shareholders generalmeeting of 2020 held on 14 August 2020 and 12 October, it is agreed to continue the financial services cooperationbetween the Company and Changhong Finance Company and renew the “Financial Service Agreement” for a periodof three years. Changhong Finance Company will provides a series of financial services such as deposit and loanswithin scope of operation according to the requirements of Company and its subsidiaries.(vi) Transactions between the finance company controlled by the Company and related parties
□ Applicable √ Not applicable
(vii) Other related party transactions
√ Applicable □ Not applicable
1. On June 22, 2022 and December 22, 2022, after deliberation and approval by the 27th meeting of the TenthBoard of Directors, 19th meeting of the Tenth Board of Supervisors and the Fourth Extraordinary General Meetingof Shareholders in 2022, it was agreed that it is estimated that the total amount of daily related transactions betweenthe Company and its subsidiaries and related parties in 2023 will not exceed RMB 16.47 billion (excluding tax); It
was also agreed that the company and Sichuan Changhong Group Finance Co., Ltd. will continue to carry out relatedtransactions of financial services such as deposits and loans in 2023.
2. On December 16, 2022, after deliberation and approval by the 29th meeting of the Tenth Board of Directorsand the 20th meeting of the Tenth Board of Supervisors, and it was agreed that the estimated daily relatedtransactions between the Company and its holding subsidiaries and Sichuan Changhong Electric Co.,Ltd. and itssubsidiaries in 2022 should not exceed RMB 10 million (excluding tax); It was estimated that in 2022, the amountof daily related transactions such as sales of goods between the Company and its holding subsidiaries and SichuanZhiyijia Network Technology Co., Ltd. would not exceed RMB 200 million (excluding tax); It was estimated thatthe daily related transactions of sales between the Company and its holding subsidiaries and OrionCo.,Ltd in 2022would be increased by RMB 4 million (excluding tax). After this increase, it is estimated that the total amount ofdaily related transactions between the Company and its holding subsidiaries and Sichuan Changhong Electronic(Group) Co., Ltd. and its holding subsidiaries (excluding Sichuan Changhong) will not exceed RMB 339 million(excluding tax), and the total amount of daily related transactions with Sichuan Changhong Electric Co.,Ltd. and itsholding subsidiaries (excluding Changhong Huayi) will not exceed RMB 14.22 billion (excluding tax).Related searches for disclosure website of interim report with major related transaction concerned
| Interim report | Disclosure date | Website for disclosure |
| Resolution Notice of the 27th session of 10thBOD (2022-087) Resolution Notice of the 19th session of 10thBOS (2022-088) Announcement on the daily related transactions of 2023（2022-089） Notice on Expected Continuing Related Transactions with Sichuan Changhong Group Finance Company in 2023 (2022-90) Resolution Notice of Fourth extraordinary general meeting of 2022 (2022-100) | December 7,2022 and December 23,2022 | www.cninfo.com.cn |
| Resolution Notice of the 29th session of 10thBOD (2022-097) Resolution Notice of the 20th session of 10thBOS (2022-098) Increase the forecast announcement of daily related party transactions for year of 2022 (2022-099) | December 17,2022 | www.cninfo.com.cn |
XV. Significant contract and implementations(i) Entrust, contract and leasing
1. Entrust
□Applicable √ Not applicable
No entrust in Period.
2. Contract
□Applicable √ Not applicable
No contract in Period.
3. Leasing
□Applicable √ Not applicable
No leasing in the period
(ii) Major guarantee
√ Applicable □ Not applicable
In RMB 10,000
| Particulars about the external guarantee of the Company and subsidiaries (Barring the guarantee for subsidiaries) | ||||||||||
| Name of the Company guaranteed | Related Announcement disclosure date | Guarantee limit | Actual date of happening | Actual guarantee limit | Guarantee type | Collateral (if applicable) | Counter guarantee (if applicable) | Guarantee term | Complete implementation or not | Guarantee for related party |
| - | - | - | - | - | - | - | - | - | - | - |
| Total approving external guarantee in report period (A1) | 0 | Total actual occurred external guarantee in report period (A2) | 0 | |||||||
| Total approved external guarantee at the end of report period ( A3) | 0 | Total actual balance of external guarantee at the end of report period (A4) | 0 | |||||||
| Guarantee between the Company and the subsidiaries | ||||||||||
| Name of the Company guaranteed | Related Announcement disclosure date | Guarantee limit | Actual date of happening | Actual guarantee limit | Guarantee type | Collateral (if applicable) | Counter guarantee (if applicable) | Guarantee term | Complete implementation or not | Guarantee for related party |
| Zhongshan Changhong Electric Co., Ltd. | Announcement No.: 2020-097,2020-098,2020-101and 2020-107 released on December 12,2020 and December 30,2020 | 140,000.00 | March 26,2021 | 13,000.00 | Joint liability guaranty | N/A | Yes | 1 year | Yes | No |
| March 29,2021 | 18,000.00 | Joint liability guaranty | Yes | 1 year | Yes | No | ||||
| March 30,2021 | 20,000.00 | Joint liability guaranty | Yes | 1 year | Yes | No | ||||
| April 1,2021 | 20,000.00 | Joint liability guaranty | Yes | 11.5 months | Yes | No | ||||
| April 6,2021 | 9,000.00 | Joint liability guaranty | Yes | 1 year | Yes | No | ||||
| May 25,2021 | 10,000.00 | Joint liability guaranty | Yes | 1 year | Yes | No | ||||
| July 20,2021 | 5,000.00 | Joint liability guaranty | Yes | 1 year | Yes | No | ||||
| August 19,2021 | 5,000.00 | Joint liability guaranty | Yes | 1 year | Yes | No | ||||
| August 27,2021 | 15,000.00 | Joint liability guaranty | Yes | 1 year | Yes | No | ||||
| Announcement No.: 2021-091,2021-092,2021-096 and2021-109 released on December 7, 2021 and December 24, 2021 | 140,000.00 | March 10,2022 | 2,000.00 | Joint liability guaranty | Yes | 1 year | No | No | ||
| March 28,2022 | 7,000.00 | Joint liability guaranty | Yes | 1 year | No | No | ||||
| April 22,2022 | 18,000.00 | Joint liability guaranty | Yes | 1 year | No | No | ||||
| May 6,2022 | 6,000.00 | Joint liability guaranty | Yes | 1 year | No | No | ||||
| June 10,2022 | 10,000.00 | Joint liability guaranty | Yes | 1 year | No | No | ||||
| June 25,2022 | 13,000.00 | Joint liability guaranty | Yes | 1 year | No | No | ||||
| July 2,2022 | 20,000.00 | Joint liability guaranty | Yes | 1 year | No | No | ||||
| August 19,2022 | 5,000.00 | Joint liability guaranty | Yes | 1 year | No | No | ||||
| October 11,2022 | 15,000.00 | Joint liability guaranty | Yes | 1 year | No | No | ||||
| Announcement No.: 2022-087,2022-088,2022-091 and 2022-100 released on December 7,2022 and December 23, 2022 | 150,000.00 | - | - | - | - | - | - | - | ||
| Changhong MeilingRidian | Announcement No.: | 30,000.00 | March 31,2021 | 4,000.00 | Joint liability guaranty | Yes | 1 year | Yes | No |
| Technology Co., Ltd. | 2020-097,2020-098,2020-101 and 2020-107 released on December 12,2020 and December 30,2020. | September 22,2021 | 3,000.00 | Joint liability guaranty | Yes | 1 year | Yes | No | ||
| October 19,2021 | 4,000.00 | Joint liability guaranty | Yes | 1 year | Yes | No | ||||
| Announcement No.: 2021-091,2021-092,2021-096 and 2021-109 released on December 7,2021 and December 24,2021. | 16,000.00 | June 6,2022 | 3,000.00 | Joint liability guaranty | Yes | 1 year | No | No | ||
| July 7,2022 | 4,000.00 | Joint liability guaranty | Yes | 1 year | No | No | ||||
| October 25,2022 | 2,000.00 | Joint liability guaranty | Yes | 1 year | No | No | ||||
| December 8,2022 | 3,500.00 | Joint liability guaranty | Yes | 11.2 months | No | No | ||||
| Announcement No.: 2022-087,2022-088,2022-091 and 2022-100 released on December 7,2022 and December 23, 2022. | 16,000.00 | - | - | - | - | - | - | - | ||
| ZhongkeMeiling Cryogenic Technology Co., Ltd. | Announcement No.: 2020-097,2020-098 ,2020-101 and 2020-107 released on December 12, 2020 and December 30,2020 | 26,000.00 | May 24,2021 | 5,000.00 | Joint liability guaranty | Yes | 1 year | Yes | No | |
| September 26,2021 | 6,000.00 | Joint liability guaranty | Yes | 1 year | Yes | No | ||||
| Announcement No.: 2021-091,2021-092,2021-096 and 2021-109 released on December 7,2021 and December 24, 2021. | 26,000.00 | September 20,2022 | 2,000.00 | Joint liability guaranty | Yes | 4.5 months | No | No | ||
| November 14,2022 | 5,000.00 | Joint liability guaranty | Yes | 7.2 months | No | No | ||||
| Announcement No.: 2022-087,2022-088,2022-091 and 2022-100 released on December 7, 2022 and December 23, 2022 | 20,000.00 | - | - | - | - | - | - | - | ||
| Sichuan Changhong Air- | Announcement No.: | 100,000.00 | September 24,2021 | 5,000.00 | Joint liability guaranty | Yes | 1 year | No | No |
| conditioner Co., Ltd. | 2020-097,2020-098,2020-101 and 2020-107 released on December 12, 2020 and December 30,2020 | December 7,2021 | 15,000.00 | Joint liability guaranty | Yes | 1 year | No | No | ||
| Announcement No.: 2021-091,2021-092,2021-096 and 2021-109 released on December 7, 2021 and December 24, 2021 | 100,000.00 | March 18,2022 | 8,000.00 | Joint liability guaranty | Yes | 1 year | No | No | ||
| April 18,2022 | 30,000.00 | Joint liability guaranty | Yes | 1 year | No | No | ||||
| Announcement No.: 2022-087,2022-088,2022-091 and 2022-100 released on December 7, 2022 and December 23, 2022 | 250,000.00 | - | - | - | - | - | - | - | ||
| Changhong RUBA Trade Company | Announcement No.: 2022-036，2022-037 and 2022-049 released on May 18,2022 and June 30, 2022 | 5,955.93注 | - | - | - | - | - | - | - | |
| Jiangxi Meiling Electric Appliance Co., Ltd. | Announcement No.: 2020-097,2020-098,2020-101 and 2020-107 released on December 12, 2020 and December 30, 2020 | 10,000.00 | July 8,2021 | 10,000.00 | Joint liability guaranty | Yes | 1 year | Yes | No | |
| Announcement No.: 2021-091,2021-092,2021-096 and 2021-109 released on December 7, 2021 and December 24, 2021 | 15,000.00 | - | - | - | - | - | - | - | ||
| Announcement No.: 2022-087,2022-088,2022-091 and 2022-100 released on December 7, 2022 and December 23, 2022. | 15,000.00 | - | - | - | - | - | - | - | ||
| Hefei Meiling Nonferrous Metal | Announcement No.: 2021-091,2021-092 and 2021-096 released on | 3,000.00 | - | - | - | - | - | - | - |
| Products Co., Ltd. | December , 2021 and December 24, 2021 | |||||||||
| Announcement No.： 2022-087,2022-088,2022-091 and 2022-100 released on December 7, 2022 and December 23, 2022 | 3,000.00 | - | - | - | - | - | - | - | ||
| Hefei Meiling Group Holdings Limited | Announcement No.: 2020-097,2020-098,2020-101 and 2020-107 released on December 12, 2020 and December 30,2020 | 50,000.00 | March 5,2021 | 5,000.00 | Joint liability guaranty | Yes | 1 year | Yes | No | |
| Announcement No.: 2021-091,2021-092,2021-096 and 2021-109 released on December 7, 2021 and December 24, 2021 | 40,000.00 | April 18,2022 | 5,000.00 | Joint liability guaranty | Yes | 1 year | No | No | ||
| Announcement No.: 2022-087,2022-088,2022-091and 2022-100 released on December 7, 2022 and December 23, 2022 | 60,000.00 | - | - | - | - | - | - | - | ||
| Hefei Changhong Meiling Life Appliances Co., Ltd. | Announcement No.: 2021-008,2021-009,2021-011 and 2021-034 released on March 3, 2021 and April 29, 2021 | 35,000.00 | July 28,2021 | 2,000.00 | Joint liability guaranty | Yes | 1 year | Yes | No | |
| July 29,2021 | 5,000.00 | Joint liability guaranty | Yes | 1 year | Yes | No | ||||
| August 30,2021 | 5,000.00 | Joint liability guaranty | Yes | 1 year | Yes | No | ||||
| October 13,2021 | 2,000.00 | Joint liability guaranty | Yes | 1 year | Yes | No | ||||
| December 9,2021 | 4,000.00 | Joint liability guaranty | Yes | 11 months | No | No | ||||
| Announcement No.: | 35,000.00 | January 26,2022 | 3,000.00 | Joint liability guaranty | Yes | 1 year | No | No |
| 2021-091,2021-092,2021-096 and 2021-109 released on December 7, 2021 and December 24, 2021 | March 17,2022 | 5,000.00 | Joint liability guaranty | Yes | 1 year | No | No | |||
| March 21,2022 | 5,000.00 | Joint liability guaranty | Yes | 5 months | Yes | No | ||||
| August 25,2022 | 500.00 | Joint liability guaranty | Yes | 1 year | No | No | ||||
| September 8,2022 | 1,000.00 | Joint liability guaranty | Yes | 1 year | No | No | ||||
| September 22,2022 | 5,000.00 | Joint liability guaranty | Yes | 1 year | No | No | ||||
| November 11,2022 | 5,000.00 | Joint liability guaranty | Yes | 1 year | No | No | ||||
| December 8,2022 | 4,500.00 | Joint liability guaranty | Yes | 10.5 months | No | No | ||||
| Announcement No.: 2022-087,2022-088,2022-091 and 2022-10 released on December 7, 2022 and December 23, 2022 | 35,000.00 | - | - | - | - | - | - | - | ||
| Total amount of approving guarantee for subsidiaries in report period (B1) | 554,955.93 | Total amount of actual occurred guarantee for subsidiaries in report period (B2) | 377,500.00 | |||||||
| Total amount of approved guarantee for subsidiaries at the end of reporting period (B3) | 1,046,955.93 | Total balance of actual guarantee for subsidiaries at the end of reporting period (B4) | 206,500.00 | |||||||
| Guarantee of the subsidiaries for the subsidiaries | ||||||||||
| Name of the Company guaranteed | Related Announcement disclosure date | Guarantee limit | Actual date of happening | Actual guarantee limit | Guarantee type | Collateral (if applicable) | Counter guarantee (if applicable) | Guarantee term | Complete implementation or not | Guarantee for related party |
| Anhui Touxing Technology Co., Ltd. | Announcement No.: 2021-013,2021-014,2021-021 and 2021- | 6,000.00 | April 30,2021 | 500 | Joint liability guaranty | - | - | 11 months | Yes | No |
| 034 released on March 31 2021 and April 29, 2021 | ||||||||||
| Announcement No.: 2021-091,2021-092 and 2021-096 released on December 7, 2021 and December 23, 2021 | 5,000.00 | June 27,2022 | 500 | Joint liability guaranty | - | - | 1 year | No | No | |
| Announcement No.: 2022-087,2022-088,2022-091 and 2022-100 released on December 7, 2022 and December 23, 2022. | 8,000.00 | - | - | - | - | - | - | - | - | |
| Anhui Ling'an Medical Equipment Co., Lt | Announcement No.: 2021-091,2021-092,2021-096 and 2021-109 released on December 7,2021 and December 24, 2021 | 5,000.00 | - | - | - | - | - | - | - | - |
| Announcement No.: 2022-087,2022-088,2022-091 and 2022-100 released on December 7, 2022 and December 23, 2022 | 12,000.00 | - | - | - | - | - | - | - | - | |
| Total amount of approving guarantee for subsidiaries in report period (C1) | 20,000.00 | Total amount of actual occurred guarantee for subsidiaries in report period (C2) | 1,000.00 | |||||||
| Total amount of approved guarantee for subsidiaries at the end of reporting period (C3) | 25,000.00 | Total balance of actual guarantee for subsidiaries at the end of reporting period (C4) | 500.00 | |||||||
| Total amount of guarantee of the Company (total of three abovementioned guarantee) | ||||||||||
| Total amount of approving guarantee in report period (A1+B1+C1) | 574,955.93 | Total amount of actual occurred guarantee in report period (A2+B2+C2) | 378,500.00 | |||||||
| Total amount of approved guarantee at the end of report period (A3+B3+C3) | 1,071,955.93 | Total balance of actual guarantee at the end of report period (A4+B4+C4) | 207,000.00 | |||||||
| Ratio of actual guarantee (A4+B4+C4) in net assets of the Company | 40.05% | |||||||||
| Including: | ||||||||||
| Amount of guarantee for shareholders, actual controller and its related parties (D) | 0 |
| The debts guarantee amount provided for the guaranteed parties whose assets-liability ratio exceed 70% directly or indirectly (E) | 129,000.00 |
| Proportion of total amount of guarantee in net assets of the Company exceed 50% (F) | 0 |
| Total amount of the aforesaid three guarantees (D+E+F) | 129,000.00 |
| Explanations on possibly bearing joint and several liquidating responsibilities for undue guarantees (if applicable) | N/A |
| Explanations on external guarantee against regulated procedures (if applicable) | N/A |
Note 1: In order to unify the currency for totaling, the exchange rate here was converted from the US dollar to the 6.6177 yuan on April 30, 2022. For details, pleaserefer to the announcement No. 2022-037 disclosed by the company.The above-mentioned guarantee objects are the wholly-owned and holding subsidiaries of the Company, and these wholly-owned and holding subsidiaries are in normalproduction and operation, there are no overdue loans, and the guarantee risks are controllable. During the reporting period, the highest level of security the Companyprovided amounted to 10,469.5593 million yuan by the approval, the actual amount of guarantee is 3,775 million yuan. At the end of the reporting period, the practicalguarantee balance amounted to 2,065 million yuan, accounting for the Company’s latest net assets ratio of 39.96%.The amount of effective guarantee provided by the approved subsidiaries of the Company to the subsidiaries is RMB 250 million, the actual amount of guaranteeis RMB 10 million, and the actual guarantee balance provided by the subsidiaries to the subsidiaries is RMB 5 million, accounting for 0.10% of the Company's latestnet assets.Explanation on guarantee with composite way: Not applicable
(iii) Entrust others to cash asset management
1. Trust financing
√ Applicable □ Not applicable
Trust financing in the period
In RMB 10,000
| Type | Capital resources | Amount for entrust | Undue balance | Overdue amount | Impairment amount for overdue financial management |
| Bank financing products | Own idle funds | 60,000.00 | 0 | 0 | 0 |
| Total | 60,000.00 | 0 | 0 | 0 | |
Details of the single major amount, or high-risk trust investment with low security, poor fluidity
√ Applicable □ Not applicable
In RMB 10,000
| Trustee institution (or name of trustee) | Trustee type | Product type | Amount | Source of funds | Start date | Expiry date | Capital investment purpose | Criteria for fixing reward | Reference annual rate of return | Anticipated income (if applicable) | Actual gains/losses in period | Actual collected gains/losses in period | Amount of reserve for devaluation of withdrawing (if applicable) | Whether approved by legal procedure (Y/N) | Whether has entrust finance plan in the future | Summary of the items and related query index (if applicable) |
| China Everbright Bank Co., Ltd., Hefei Branch | Bank | Principal-guaranteed with floating income | 7,000.00 | Idle own funds | January 11,2022 | April 11,2022 | This product is an embedded financial derivatives of RMB structured deposits, the bank invests the raised structured deposits funds in fixed deposit of the bank, at the same time, the bank invests it in financial derivative transactions (including but not limited to options and swaps and other derivatives) in domestic or international financial markets with the upper limit of the income of the time deposit, the sum of the profit and loss of the financial derivative transaction investment and the bank deposit interest constitutes the income of the structured deposit product. | Agreement | 3.45% | Not applicable | 60.38 | 60.38 | N/A | Yes | Not applicable | (www.cninfo.com.cn)(2022-003) |
| Hefei Branch of Industrial Bank | Bank | Principal-guaranteed with floating income | 3,000.00 | Idle own funds | January 12,2022 | April 12,2022 | This product is a structured deposit product, the derivative product of which is linked to the morning benchmark price of Shanghai Gold Exchange on the observation date. | Agreement | 3.21% | Not applicable | 23.75 | 23.75 | N/A | Yes | Not applicable | (www.cninfo.com.cn)(2022-003) |
| Hefei Luyang Branch of Bank of Hangzhou Co., Ltd. | Bank | Principal-guaranteed with floating income | 1,000.00 | Idle own funds | January 14,2022 | April 14,2022 | This product is a structured deposit product, and its derivative product is linked to the spot exchange rate of the Euro against the US dollar published on the Bloomberg page "BFIX" at 14:00 Beijing time on the observation date. | Agreement | 3.3% | Not applicable | 8.16 | 8.16 | N/A | Yes | Not applicable | (www.cninfo.com.cn)(2022-003) |
| Hefei Branch of Industrial Bank | Bank | Principal-guaranteed with floating income | 1,000.00 | Idle own funds | January 14,2022 | April 14,2022 | This product is a structured deposit product, the derivative product of which is linked to the morning benchmark price of Shanghai Gold Exchange on the observation date. | Agreement | 3.21% | Not applicable | 7.92 | 7.92 | N/A | Yes | Not applicable | (www.cninfo.com.cn)(2022-004) |
| Zhongshan Branch of Guangfa Bank | Bank | Principal-guaranteed with floating income | 5,000.00 | Idle own funds | January 28,2022 | April 28,2022 | Principal of the structured deposit is included in the unified fund operation and management of Guangdong Development Bank, returns on the structured deposit from investors depend on the performance of gold during the observation period | Agreement | 3.80% | Not applicable | 46.85 | 46.85 | N/A | Yes | Not applicable | "(www.cninfo.com.cn) (2022-006）" |
| Zhongshan Branch of Bank of Communications | Bank | Principal-guaranteed with floating income | 5,000.00 | Idle own funds | March 2,2022 | June 6,2022 | Bank of Communications operates the funds raised by structured deposit products in a unified manner and manages them in accordance with the principle of separating basic deposits from derivative transactions. The raised principal will be included in the internal fund of Bank of Communications for unified operation and management, and will be included in the payment scope of deposit reserve fund and deposit insurance. The embedded derivative part of products will be linked to the exchange rate, interest rate, commodity and index, etc. | Agreement | 3.20% | Not applicable | 42.08 | 42.08 | N/A | Yes | Not applicable | (www.cninfo.com.cn) (2022-009） |
| Hefei Branch of China Everbright Bank | Bank | Principal-guaranteed with floating income | 8,000.00 | Idle own funds | April 15,2022 | July 15,2022 | This product is an embedded financial derivatives of RMB structured deposits, the bank invests the raised structured deposits funds in fixed deposit of the bank, at the same time, the bank invests it in financial derivative transactions (including but not limited to options and swaps and other derivatives)in domestic or international financial markets with the upper limit of the income of the time deposit, the sum of the profit and loss of the financial derivative transaction investment and the bank deposit interest constitutes the income of the structured deposit product. | Agreement | 3.55% | Not applicable | 71.00 | 71.00 | N/A | Yes | Not applicable | (www.cninfo.com.cn)(2022-027) |
| Hefei Luyang Branch of Bank of Hangzhou Co., Ltd. | Bank | Principal-guaranteed with floating income | 2,000.00 | May 25,2022 | August 26,2022 | This product is a structured deposit product, and its derivative product is linked to the spot exchange rate of the Euro against the US dollar published on the Bloomberg page "BFIX" at 14:00 Beijing time on the observation date. | Agreement | 3.04% | Not applicable | 15.49 | 15.49 | N/A | Yes | Not applicable | (www.cninfo.com.cn)(2022-039) |
| Hefei High-tech zone Branch of Huaxia Bank | Bank | Principal-guaranteed with floating income | 2,000.00 | Idle own funds | May 25,2022 | November 25,2022 | This product is a structured deposit product, the structured derivatives of which are linked to the CSI 500 index. | Agreement | 3.70% | Not applicable | 37.30 | 37.30 | N/A | Yes | Not applicable | (www.cninfo.com.cn)(2022-039) |
| Hefei Science and Technology Sub-branch of Bank of Dongguan Co., Ltd. | Bank | Principal-guaranteed with floating income | 2,000.00 | Idle own funds | May 27,2022 | November 23,2022 | Principal of the structured deposit is included in on-balance sheet accounting and managed in accordance with the deposit, and included in the payment range payment of deposit reserves and deposit insurance premiums, relevant assets are capitalized and provided for in line with the relevant regulations of banking supervision institutions of the State Council. The ultimate actual return of structured deposits depends on the performance of underlying markets and is influenced by a variety of factors in the market. | Agreement | 3.50% | Not applicable | 34.52 | 34.52 | N/A | Yes | Not applicable | (www.cninfo.com.cn)(2022-039) |
| Zhongshan Shiqi Branch of Guangfa Bank | Bank | Principal-guaranteed with floating income | 2,000.00 | Idle own funds | May 27,2022 | November 23,2022 | Principal of the structured deposit is included in the unified operation and management of Guangdong Development Bank, investor’s returns from the structured deposit depend on the performance of CSI 500 during the observation period | Agreement | 3.30% | Not applicable | 32.55 | 32.55 | N/A | Yes | Not applicable | (www.cninfo.com.cn)(2022-040) |
| Zhongshan Branch of China Guangfa Bank Co., Ltd. | Bank | Principal-guaranteed with floating income | 5,000.00 | Idle own funds | September 16,2022 | December 15,2022 | Principal of the structured deposit is included in the unified fund operation and management of Guangdong Development Bank, returns on the structured deposit from investors depend on the performance of gold during the observation period | Agreement | 3.35% | Not applicable | 41.30 | 41.30 | N/A | Yes | Not applicable | (www.cninfo.com.cn) (2022-071）" |
| Hefei Luyang Branch of Bank of Hangzhou Co., Ltd. | Bank | Principal-guaranteed with floating income | 2,000.00 | Idle own funds | September 23,2022 | December 23,2022 | This product is a structured deposit product, and its derivative product is linked to the spot exchange rate of the Euro against the US dollar published on the Bloomberg page "BFIX" at 14:00 Beijing time on the observation date. | Agreement | 2.88% | Not applicable | 14.36 | 14.36 | N/A | Yes | Not applicable | (www.cninfo.com.cn)(2022-073) |
| Chengdu Branch of Bohai Bank | Bank | Principal-guaranteed with floating income | 10,000.00 | Idle own funds | September 23,2022 | December 22,2022 | 。This product is a structured deposit product, and its derivative products are linked to the "Bond Pass" green financial bond of China Development Bank in the first phase of 2021 (bond abbreviation: 21 GKLZ 01, bond code: 2102001.IB). | Agreement | 3.25% | Not applicable | 80.14 | 80.14 | N/A | Yes | Not applicable | (www.cninfo.com.cn)(2022-073) |
| Hefei Branch of Industrial Bank | Bank | Principal-guaranteed with floating income | 2,000.00 | Idle own funds | September 30,2022 | December 23,2022 | This deposit product is an RMB break-even floating income product, and the product income includes fixed income and floating income, in which the floating income is linked to the fluctuation of the linked target. | Agreement | 3.02% | Not applicable | 13.90 | 13.90 | N/A | Yes | Not applicable | (www.cninfo.com.cn)(2022-074) |
| HefeiBranch of SPD Bank | Bank | Principal-guaranteed with floating income | 3,000.00 | Idle own funds | November 7,2022 | December 8,2022 | The structured deposits are included in the payment scope of deposit reserve and deposit insurance premium in accordance with deposit management and regulatory requirements, | Agreement | 2.85% | Not applicable | 7.36 | 7.36 | N/A | Yes | Not applicable | (www.cninfo.com.cn)(2022-084) |
| Total | 60,000.00 | -- | -- | -- | -- | -- | -- | -- | 537.06 | -- | -- | -- | -- | -- | ||
Entrust financial expected to be unable to recover the principal or impairment might be occurred
□ Applicable √ Not applicable
2. Entrust loans
□ Applicable √ Not applicable
No entrust loans in the period.(iv) Other material contracts
□ Applicable √ Not applicable
No other material contracts in the period.
XVI. Explanation on other significant events
√ Applicable □ Not applicable
1. After deliberated and approved by the 16
th session of 10
thBOD and Annual General Meeting of 2021, it agreedthat the Company and its subsidiaries shall carry out forward foreign exchange fund trading business during theperiod from 1 July 2022 to 30 June 2023. Balance of trading not exceeding US$ 825 million (mainly including USD,AUD, EUR and other foreign exchange converted to USD), and the maximum period of delivery of a single businessshall not exceed one year. Found more on appointed media “Securities Times”, “China Securities Journal”, “HongKong Commercial Daily” and Juchao Website (www.cninfo.com.cn) that the Company disclosed in the form ofannouncement (Announcement No. 2022-012, 2022-019 and 2022-033) on 3 March 2022 and 29 April 2022.
2. Since the completion of “Repurchase Plan for Some of the Domestically Listed Foreign Shares (B Share)” onFebruary 18, 2022 and the shares were cancel dated March 2, 2022. After deliberation and approved by the 16
th
session of 10
thBOD and Annual General Meeting of 2021, agreed to reduce registered capital of the Company from1,044,597,881 yuan to 1,029,923,715 yuan, further agreed to make corresponding amendment in the Article ofAssociation with registered capital, share capital structure concerned in line with the laws. Found more on appointedmedia “Securities Times”, “China Securities Journal”, “Hong Kong Commercial Daily” and Juchao Website(www.cninfo.com.cn) that the Company disclosed in the form of announcement (Announcement No. 2022-012,2022-020 and 2022-033) on 3 March 2022 and 29 April 2022.
3.After deliberated and approved by the 16
th
session of 10
th BOD, the 13
th session of 10
thBOD and Annual GeneralMeeting of 2021, its was agreed that the Company will close the project of “intelligent R&D management platformconstruction” under the “intelligent manufacturing construction project” and “intelligent R&D project”. the45,665,621.17 yuan (subject to the bank balance on the day the fund transferred) fund raised balance up to December31, 2021 from the above mentioned projects and the balance resulting from the difference between interest incomeand fees generated before the cancellation of the special account of raised fund will be permanently replenish theworking capital for daily operation and business development of the Company. In 2016, all the investment projectsof raised funds from the company's non-public offering of shares have been completed and have reached thescheduled usable state, and the remaining funds are unpaid contract balance and quality guarantee fund. TheCompany will still keep the special account for the raised funds until all the remaining contract balance and qualityguarantee fund (with a total amount of RMB 19,013,022.10 ) are paid, and the balance formed by the differencebetween interest income and handling fee generated by the subsequent refinancing of this part of the funds will alsobe used to permanently replenish the working capital, and then the special account for raising funds will be cancelledas required.Found more on appointed media “Securities Times”, “China Securities Journal”, “Hong Kong Commercial Daily”and Juchao Website (www.cninfo.com.cn) that the Company disclosed in the form of announcement(Announcement No. 2022-012, 2022-013, 2022-022 and 2022-033) on 31 March 2022,and 29 April 2022.
4.After deliberated and approved by the 16
th session of 10
th
BOD. The Company invested 10.45 million yuan forthe technical transformation of front-end production line in Hefei refrigerator base. Newly increased one multi-door
shell forming line to enhance the front-end manufacturing capability in refrigerators, accomplish the cost reductionand efficiency improvement, strengthen the market competitiveness of the products to meet the production demandof refrigerator products. Found more on appointed media “Securities Times”, “China Securities Journal”, “HongKong Commercial Daily” and Juchao Website (www.cninfo.com.cn) that the Company disclosed in the form ofannouncement (Announcement No. 2022-012) on 31 March 2022.
5. The resolution of the 16
th
session of the 10
thBOD and the 2021 annual general meeting of shareholders approvedand agreed that the company and its subsidiaries apply to Industrial Bank Co., Ltd., Hefei Branch for a special creditline of bill pool of up to 400 million yuan, and applied to Ping An Bank Co., Ltd. Hefei Branch for a special creditline of bill pool of up to 300 million yuan, and applied to Jiujiang Bank Co., Ltd. Hefei Branch for a special creditline of bill pool of up to 400 million yuan. The credit period is one year, and the types of credit are mainly used forthe special business of bill pool, and endorsement for pledge is adopted. Found more on appointed media “SecuritiesTimes”, “China Securities Journal”, “Hong Kong Commercial Daily” and Juchao Website (www.cninfo.com.cn)that the Company disclosed in the form of announcement (Announcement No. 2022-012, 2022-023 and 2022-033)on 31 March 2022 and 29 April 2022.
6. On April 22, 2022, the Company received a Letter of Notification of Share Reduction from Ms. Li Xia-thesecretary of the BOD of the Company. Due to the need of Li’s own funds, within six months after 15 trading daysfrom the share reduction plan announced, Ms. Li Xia reduced 138,200 shares of the Company at most (0.0134% oftotal share capital of the Company) by way of centralized competitive bidding, shares reduction shall not exceed25% of the shares held by Ms. Li. On June 6, 2022, the Company received a Letter of Notification of Completionof the Share Reduction from Ms. Li Xia. As of June 6, 2022, Ms. Li Xia completed the reduction of 138,200 sharesaforesaid through centralized bidding trading on Shenzhen Stock Exchange. Found more on appointed media“Securities Times”, “China Securities Journal”, “Hong Kong Commercial Daily” and Juchao Website(www.cninfo.com.cn) that the Company disclosed in the form of announcement (Announcement No. 2022-032 and2022-041) on 25 April 2022 and 7 June 2022.
7.In the interest of establishing a diverse shareholder return mechanism, and to thanks the shareholders for theirconcern and support for a long period, also, allows shareholders to experience new products and services of theCompany, improve the understanding and recognition of the intrinsic value of the Company, a “Meiling ShareholderReturn Activity” was held by the Company from May 9, 2022 to May 15, 2022. Found more on appointed media“Securities Times”, “China Securities Journal”, “Hong Kong Commercial Daily” and Juchao Website(www.cninfo.com.cn) that the Company disclosed in the form of announcement (Announcement No. 2022-035) on7 May 2022.
8.After deliberated and approved by the 18
th session of 10
thBOD and second extraordinary shareholders meetingof 2022, agreed the Company to provide a domestic guarantee for Changhong RUBA Trading Co., Ltd to apply fora loan from local banks. Guarantee amounted to $9 million at most, with a period of one year for the operatingcapital turnover of Changhong RUBA Trading Company. Meanwhile, Changhong RUBA Trading Company willprovide a corresponding counter-guarantee to the Company’s guarantee with its whole assets. Found more onappointed media “Securities Times”, “China Securities Journal”, “Hong Kong Commercial Daily” and Juchao
Website (www.cninfo.com.cn) that the Company disclosed in the form of announcement (Announcement No. 2022-036, No.2022-037 and No.2022-044) on 18 May 2022 and 14 June 2022.
9.After deliberated and approved by the 19
th
session of 10
thBOD and second extraordinary shareholders meetingof 2022, and according to the “Guidelines for Article of Association of the Listed Companies”(Revised in 2022)from SCRC and relevant provisions of laws and regulations as “Listing Rules of Stocks” from Shenzhen StockExchange, take the actual situation of the Company into consideration, agreed to amend some Clauses of the Articleof Association, “Rules of Procedure for the GM”, “Rules of Procedure of the BOD” and “Rules of Procedure of theBOS”. Found more on appointed media “Securities Times”, “China Securities Journal”, “Hong Kong CommercialDaily” and Juchao Website (www.cninfo.com.cn) that the Company disclosed in the form of announcement(Announcement No. 2022-042, No.2022-043 and No.2022-049) on 14 June 2022 and 30 June 2022.
10. On June 16, 2022, after the implementation of the company's share structure reform, the thirteenth batch oftradable shares with sales restrictions was lifted and listed for circulation. There were 4 holders of shares lifted fromsales restrictions this time, and the number of shares lifted from sales restrictions was 1,250,430 shares, accountingfor 0.1214% of the company's total share capital. Found more on appointed media “Securities Times”, “ChinaSecurities Journal”, “Hong Kong Commercial Daily” and Juchao Website (www.cninfo.com.cn) that the Companydisclosed in the form of announcement (Announcement No. 2022-045) on 15 June
11. By the resolution passed at the 22nd meeting of the Tenth Board of Directors of the Company, it was agreed toby-elect Mr. Zhao Qilin as a member of the Strategy Committee under the Tenth Board of Directors of theCompany.Found more on appointed media “Securities Times”, “China Securities Journal”, “Hong KongCommercial Daily” and Juchao Website (www.cninfo.com.cn) that the Company disclosed in the form ofannouncement (Announcement No. 2022-062) on 18 August 2022.
12. By the resolution passed at the 22nd meeting of the Tenth Board of Directors of the Company, it was agreed
that the Company would donate RMB 150,000 to the People's Government of Songdian Town, Huoqiu County,Lu'an City, Anhui Province, for the collective development project of the north and south four villages in SongdianTown, Huoqiu County, so as to increase employment and strengthen the collective economy.Found more onappointed media “Securities Times”, “China Securities Journal”, “Hong Kong Commercial Daily” and JuchaoWebsite (www.cninfo.com.cn) that the Company disclosed in the form of announcement (Announcement No. 2022-062 and 2022-065) on August 18,2022.
13. By the resolution passed at the 22nd meeting of the Tenth Board of Directors of the Company, according to the
Proposal on Amending Some Articles of Association approved by the General Meeting of Shareholders of theCompany on June 29, 2022, it was agreed to amend the relevant articles of the Rules of Procedure of the Presidentat the same time. Found more on appointed media “Securities Times”, “China Securities Journal”, “Hong KongCommercial Daily” and Juchao Website (www.cninfo.com.cn) that the Company disclosed in the form ofannouncement (Announcement No. 2022-062) on August 18, 2022.
14. By the resolution passed at the 23rd meeting of the Tenth Board of Directors of the Company, it was agreed
that the Company would issue the Commitment on Trademark Authorization to its holding subsidiary Zhongke
Meiling. Found more on appointed media “Securities Times”, “China Securities Journal”, “Hong Kong CommercialDaily” and Juchao Website (www.cninfo.com.cn) that the Company disclosed in the form of announcement(Announcement No. 2022-068) on September 7, 2022.
15. By the resolution passed at the 24th meeting of the Tenth Board of Directors, it was agreed that the Companywould donate RMB 1 million for earthquake relief work in Luding County through Mianyang Charity Federationto help the affected people tide over the difficulties and rebuild their homes. Found more on appointed media“Securities Times”, “China Securities Journal”, “Hong Kong Commercial Daily” and Juchao Website(www.cninfo.com.cn) that the Company disclosed in the form of announcement (Announcement No. 2022-069 and2022-070) on September 8, 2022.
16. By the resolutions passed at the 25th meeting of the Tenth Board of Directors and the Fourth Extraordinary
General Meeting of Shareholders in 2022, it was agreed that the Company and its subsidiaries would apply for aspecial credit line for RMB bill pool of maximum RMB 500 million from Hefei Branch of Huaxia Bank Co., Ltd.,that of maximum RMB 600 million from Hefei Branch of Hangzhou Bank Co., Ltd., and that of maximum RMB 1billion from Anhui Branch of Bank of Communications Co., Ltd., with a credit period of one year. The credit linesare mainly used for special business of bill pools, and are pledged by bills.Found more on appointed media“Securities Times”, “China Securities Journal” and Juchao Website (www.cninfo.com.cn) that the Companydisclosed in the form of announcement (Announcement No. 2022-081 and 2022-100) October 25, 2022 andDecember 23, 2022.
17. During the reporting period, the information disclosure media designated by the company were changed fromSecurities Times, China Securities Journal, Hongkong Commercial Daily and CNINF (www.cninfo.com.cn) toSecurities Times, China Securities Journal, and CNINF (www.cninfo.com.cn). Found more on appointed media“Securities Times”, “China Securities Journal” and Juchao Website (www.cninfo.com.cn) that the Companydisclosed in the form of announcement (Announcement No. 2022-082) October 28, 2022.
18. By the resolution passed at the 26th meeting of the Tenth Board of Directors of the Company, it was agreed toappoint Ms. Li Xia as the Chief Compliance Officer of the Company, with the term of office from the date ofdeliberation and approval by the Board of Directors to the expiration of the term of the Tenth Board of Directors ofthe Company. Found more on appointed media “Securities Times”, “China Securities Journal” and Juchao Website(www.cninfo.com.cn) that the Company disclosed in the form of announcement (Announcement No. 2022-085 and2022-086) on Novembe 26, 2022.
19. By the resolution passed at the 27th meeting of the Tenth Board of Directors, the 19th meeting of the TenthBoard of Supervisors and the Fourth Extraordinary General Meeting of Shareholders in 2022, it was agreed that thecompany would provide a total of RMB 5,690,000,000 of credit guarantee to its wholly-owned and holdingsubsidiaries in 2023. The guarantee period is one year for the amount renewed in this year and the increasedguarantee amount beyond this year.Found more on appointed media “Securities Times”, “China Securities Journal”and Juchao Website (www.cninfo.com.cn) that the Company disclosed in the form of announcement(Announcement No. 2022-091 and 2022-100) on December 7, 2022 and Decenber 23, 2022.
20. By the resolution passed at the 27th meeting of the Tenth Board of Directors of the Company and the FourthExtraordinary General Meeting of Shareholders in 2022, it was agreed that the Company and its subsidiaries canuse their own idle funds of no more than RMB 1.8 billion (which can be used in a rolling way) to invest in bankwealth management products with high safety, good liquidity, low risk and stability within one year. Theauthorization period is valid within one year from the date of deliberation and approval by the General Meeting ofShareholders of the Company.Found more on appointed media “Securities Times”, “China Securities Journal” andJuchao Website (www.cninfo.com.cn) that the Company disclosed in the form of announcement (AnnouncementNo. 2022-092 and 2022-100)) on December 7, 2022 and December 23, 2022.
21. By the resolution passed at the 27th meeting of the Tenth Board of Directors, 19th meeting of the Tenth Boardof Supervisors and the Fourth Extraordinary General Meeting of Shareholders in 2022, it was agreed that theCompany and Hefei Branch of Zheshang Bank Co., Ltd. would carry out asset pool business with a total amount ofno more than RMB 500 million, with a term of one year starting from the date of deliberation and approval by theGeneral Meeting of Shareholders of the Company. The specific term shall be subject to the term stipulated in therelevant contract finally signed between the Company and Zheshang Bank Co., Ltd. Found more on appointedmedia “Securities Times”, “China Securities Journal” and Juchao Website (www.cninfo.com.cn) that the Companydisclosed in the form of announcement (Announcement No. 2022-087 ,2022-93 and 2022-100)) on December 7,2022 and December 23, 2022.XVII. Major event of the subsidiary
√ Applicable □ Not applicable
1. After deliberated and approved by the 16
th session of 10
thBOD, with purpose of fulfilling the corporate socialresponsibility, the BOD agreed that subsidiary Zhongke Meiling Cryogenic Technology Co., Ltd endowed thescholarships to 11 well-known domestic universities in 10 years with 5.65 million yuan at most in total, forsupporting the development of university education and improving the brand reputation as well as the social imageand influences of the Company and its subsidiaries. Found more on appointed media “Securities Times”, “ChinaSecurities Journal”, “Hong Kong Commercial Daily” and Juchao Website (www.cninfo.com.cn) that the Companydisclosed in the form of announcement (Announcement No. 2022-012, No.2022-021 and No.2022-033) on 31March 2022 and 29 April 2022.
2. After deliberated and approved by the 18
th session of 10
thBOD, on the basis of strategic planning and businessdevelopment needs of the controlling subsidiary- Zhongke Meiling Cryogenic Technology Co., Ltd, twins the trendof securities market development in China, agreed to proposed a public offering of shares to unspecified qualifiedinvestors under the name of Zhongke Meiling and listing on Beijing Stock Exchange to further improve itsgovernance standards, enhance the capital strength, expanding influence within the industry and heighten its overallcompetitiveness. On June 24, 2022, a “Letter of Acceptance Completion of the Coaching Work of ShenwanHongyuan Securities Underwriting Sponsor” issued by Anhui CSRC was received by Zhongke Meiling, theacceptance of coaching work in aspect of public offering of shares to unspecified qualified investors and listing onBeijing Stock Exchange was completed. On June 29, 2022, Zhongke Meiling received a “Notification of Acceptance”(GF2022060060) issued from Beijing Stock Exchange, BSE has formally accepted the application for publicoffering of shares to unspecified qualified investors and listing on BSE.On August 5, 2022, Beijing Stock Exchange
approved the application of Zhongke Meiling to publicly issue shares to unspecified qualified investors and listthem, On September 16, 2022, Zhongke Meiling's application for registration of public offering of shares tounspecified qualified investors was approved by China Securities Regulatory Commission. With the consent ofBeijing Stock Exchange, Zhongke Meiling shares were listed on Beijing Stock Exchange on October 18,2022. .Found more on appointed media “Securities Times”, “China Securities Journal”, “Hong Kong CommercialDaily” and Juchao Website (www.cninfo.com.cn) that the Company disclosed in the form of announcement(Announcement No. 2022-036, No.2022-038, No.2022-048 , No.2022-050, No.2022-056,No.2022-057,No.2022-058,No.2022-060 2022-072 and 2022-076)) on 18 May 2022, 25 June ,30 June 2022, August 6, 2022 , September19, 2022 and October 14,2022.
3.By the resolution passed at the 21st meeting of the Tenth Board of Directors, 16th meeting of the Tenth Board ofSupervisors and the Third Extraordinary General Meeting of Shareholders in 2022, it was agreed that ZhongkeMeiling, a subsidiary of the Company, would publicly issue shares to unspecified qualified investors and list on theBeijing Stock Exchange; It was agreed that Zhongke Meiling, a subsidiary of the Company, would adjust its reserveprice in the specific plan of public offering of shares to unspecified qualified investors and listing on the BeijingStock Exchange, that is, from RMB 17/share to RMB 16/share; It was agreed to the adjusted plan of ZhongkeMeiling to publicly issue shares to unspecified qualified investors and list on the Beijing Stock Exchange. Foundmore on appointed media “Securities Times”, “China Securities Journal” and Juchao Website (www.cninfo.com.cn)that the Company disclosed in the form of announcement (Announcement No. 2022-036, No.2022-056, No.2022-0057 and No.2022-066) on August 3, 3022 and August 20,2022.
4. During the reporting period, Hefei Changhong Meiling Electrical Appliance Co., Ltd., a subsidiary of the
Company, received a government subsidy of RMB 6,500,000.00 on September 30, 2022, accounting for 12.52% ofthe Company's latest audited net profit attributable to shareholders of listed companies..Found more on appointedmedia “Securities Times”, “China Securities Journal” and Juchao Website (www.cninfo.com.cn) that the Companydisclosed in the form of announcement (Announcement No. 2022-075) on October 10,2022.
VII .Changes in Shares and Particulars about ShareholdersI. Changes in Share Capital(i) Changes in Share Capital
In Share
| Before the Change | Increase/Decrease in the Change (+, -) | After the Change | |||||||
| Amount | Proportion | New shares issued | Bonus shares | Public reserve transfer into share capital | Others | Subtotal | Amount | Proportion | |
| I. Restricted shares | 8,442,922 | 0.81% | 0 | 0 | 0 | -1,250,430 | -1,250,430 | 7,192,492 | 0.70% |
| 1. State-owned shares | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| 2. State-owned legal person’s shares | 1,766,269 | 0.17% | 0 | 0 | 0 | -625,216 | -625,216 | 1,141,053 | 0.11% |
| 3. Other domestic shares | 5,409,233 | 0.52% | 0 | 0 | 0 | -625,214 | -625,214 | 4,784,019 | 0.47% |
| Including: Domestic legal person’s shares | 3,884,551 | 0.37% | 0 | 0 | 0 | -521,012 | -521,012 | 3,363,539 | 0.33% |
| Domestic natural person’s shares | 1,524,682 | 0.15% | 0 | 0 | 0 | -104,202 | -104,202 | 1,420,480 | 0.14% |
| 4. Foreign shares | 1,267,420 | 0.12% | 0 | 0 | 0 | 0 | 0 | 1,267,420 | 0.12% |
| Including: Foreign legal person’s shares | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| Foreign natural person’s shares | 1,267,420 | 0.12% | 0 | 0 | 0 | 0 | 0 | 1,267,420 | 0.12% |
| II. Unrestricted shares | 1,036,154,959 | 99.19% | 0 | 0 | 0 | -13,423,736 | -13,423,736 | 1,022,731,223 | 99.30% |
| 1. RMB ordinary shares | 874,558,379 | 83.72% | 0 | 0 | 0 | +1,250,430 | +1,250,430 | 875,808,809 | 85.04% |
| 2. Domestically listed foreign shares | 161,596,580 | 15.47% | 0 | 0 | 0 | -14,674,166 | -14,674,166 | 146,922,414 | 14.26% |
| 3. Overseas listed foreign shares | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| 4. Others | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| III. Total shares | 1,044,597,881 | 100.00% | 0 | 0 | 0 | -14,674,166 | -14,674,166 | 1,029,923,715 | 100.00% |
1. Reasons for share changed
√ Applicable □ Not applicable
(1) In order to maintain the company's image in the capital market and effectively protect the rights and interests ofall shareholders, the company repurchased some domestically listed foreign shares (B shares) by means ofcentralized bidding transactions, and completed the cancellation procedures of the repurchased shares at theShenzhen Branch of China Securities Depository and Clearing Co., Ltd. on March 2, 2022, a total of 14,674,166shares of the company (B shares) were cancelled, accounting for 1.4048% of the company's total share capital beforecancellation. After the cancellation, the total share capital of the company was reduced from 1,044,597,881 shares
to 1,029,923,715 shares.
(2) On June 16, 2022, after the implementation of the company's share structure reform, the thirteenth batch oftradable shares with sales restrictions was lifted and listed for circulation. There were 4 holders of shares lifted fromsales restrictions this time, and the number of shares lifted from sales restrictions was 1,250,430 shares, accountingfor 0.1214% of the company's total share capital.
2. Approval of share changed
√ Applicable □ Not applicable
Matters concerned the company’s repurchase of some domestically listed foreign shares (B shares) and thecancellation of the repurchased shares were reviewed and approved at the 40
thsession of the ninth board of directors,the third extraordinary general meeting of shareholders in 2020, the 11
thsession of the tenth board of directors, thethird extraordinary general meeting of shareholders in 2021, the 16
thsession of the tenth board of directors, and the2021 annual general meeting of shareholders of the company which respectively held on July 27, 2020, August 18,2020, August 24, 2021, September 10, 2021, March 29, 2022 and April 29, 2022.
3. Ownership transfer of share changed
√ Applicable □ Not applicable
The company cancelled the repurchased domestically listed foreign shares (B shares) of 14,674,166 shares andcompleted the cancellation procedures of the repurchased shares at Shenzhen Branch of China Securities Depositoryand Clearing Co., Ltd. on March 2, 2022.
4. Implementation progress of shares buy-back
√ Applicable □ Not applicable
In 2022, the Company realized a net profit of RMB 244,538,734.49 attributable to shareholders of the parentcompany, and RMB 5,168,286,872.09 attributable to owners' equity of the parent company at the end of thereporting period, based on the initial total share capital of 1,044,597,881 shares, corresponding to earnings per shareof RMB 0.2341 and net assets per share of RMB 4.95; based on the ending total share capital of 1,029,923,715shares, corresponding to earnings per share of RMB 0.2374, and the net assets per share of RMB 5.02.
5. Implementation progress of reducing holdings of shares buy-back by centralized bidding
□ Applicable √ Not applicable
(ii) Changes of lock-up stocks
√ Applicable □ Not applicable
In Shares
| Shareholders | Opening shares restricted | Shares released in Period | Restricted shares increased | Ending shares restricted | Restricted reasons | Date for released |
| in Period | ||||||
| Zhang Yong | 104,202 | 0 | 104,202 | 0 | Statutory commitment of the stock reform | 2022-6-16 |
| China Life Insurance (Group) Company | 416,810 | 0 | 416,810 | 0 | Statutory commitment of the stock reform | 2022-6-16 |
| China People's Insurance Group Co., Ltd. | 625,216 | 0 | 625,216 | 0 | Statutory commitment of the stock reform | 2022-6-16 |
| Magang Community Resident Committee of Longgang Integrated Economic Development Zone, Hefei | 104,202 | 0 | 104,202 | 0 | Statutory commitment of the stock reform | 2022-6-16 |
| Total | 1,250,430 | 0 | 1,250,430 | 0 | -- | -- |
II. Securities issuance and listing(i) Security offering in reporting period (Not including preferred stock)
□ Applicable √ Not applicable
(ii) Explanation on changes of total shares, shareholders structure and assets & liability structures
√Applicable □Not applicable
At the 40th meeting of the Ninth Board of Directors, the 21st meeting of the Ninth Board of Supervisors andthe Third Extraordinary General Meeting of Shareholders in 2020 held on July 27 and August 18, 2020, the Proposalon Repurchase of Some Domestic Listed Foreign Shares (B Shares) of the Company was deliberated and passed. Inorder to continue to implement the B-share repurchase, the Company held the 11th meeting of the Tenth Board ofDirectors, the 9th meeting of the Tenth Board of Supervisors and the Third Extraordinary General Meeting ofShareholders in 2021 on August 24, 2021 and September 10, 2021, and deliberated and passed the Proposal onContinuing to Implement and Partially Adjust the Plan for Repurchasing Some Domestic Listed Foreign Shares (B-shares) of the Company.During the reporting period, the Company completed the cancellation procedures of 14,674,166 domesticallylisted foreign-funded shares (B shares) repurchased. After deliberation and approval at the 2021 Annual GeneralMeeting of Shareholders held on April 28, 2022, the total share capital of the Company was reduced from1,044,597,881 shares to 1,029,923,715 shares.(iii) Current shares held by internal staffs
□ Applicable √ Not applicable
III. Particulars about shareholder and actual controller of the Company(i) Amount of shareholders of the Company and particulars about shares holding
In Share
| Total shareholders at end of the Period | 58,165 | Total common shareholders at end of last month before annual report disclosed | 50,370 | Total preference shareholders with voting rights recovered at end of reporting period (if applicable) | 0 | Total preference shareholders with voting rights recovered at end of last month before annual report disclosed (if applicable) | 0 | ||||||||
| Particulars about shares held above 5% by shareholders or top 10 shares holding | |||||||||||||||
| Full name of Shareholders | Nature of shareholder | Proportion of shares held | Total shareholders at the end of report period | Changes in report period | Amount of restricted shares held | Amount of un-restricted shares held | Information of shares pledged, tagged or frozen | ||||||||
| State of share | Amount | ||||||||||||||
| Sichuan Changhong Electric Co., Ltd. | State-owned legal person | 24.12% | 248,457,724 | 0 | 0 | 248,457,724 | - | - | |||||||
| Hefei Industry Investment Holding (Group) Co., Ltd. | State-owned legal person | 4.64% | 47,823,401 | 0 | 0 | 47,823,401 | - | - | |||||||
| CHANGHONG (HK) TRADING LIMITED | Foreign legal person | 2.63% | 27,077,797 | 0 | 0 | 27,077,797 | - | - | |||||||
| Ma Guobin | Domestic nature person | 1.63% | 16,813,460 | +5,706,960 | 0 | 16,813,460 | - | - | |||||||
| CAO SHENGCHUN | Foreign nature person | 1.43% | 14,766,086 | 0 | 0 | 14,766,086 | - | - | |||||||
| Xu Aiyun | Domestic nature person | 1.36% | 14,038,200 | +11,713,300 | 0 | 14,038,200 | - | - | |||||||
| Caitong Fund- Ningbo Bank-Haitong Xingtai (Anhui) Emerging Industry Investment Fund (Limited Partnership) | Domestic non-state-owned legal person | 1.04% | 10,733,452 | 0 | 0 | 10,733,452 | - | - | |||||||
| Wang Xinzhong | Domestic nature person | 0.94% | 9,679,840 | +5,744,900 | 0 | 9,679,840 | - | - | |||||||
| Wang Kai | Domestic nature person | 0.62% | 6,380,392 | +6,380,392 | 0 | 6,380,392 | - | - | |||||||
| Philip Securities (H.K.) Co., Ltd. | Foreign legal person | 0.61% | 6,296,913 | 0 | 0 | 6,296,913 | - | - | |||||||
| Strategy investors or general legal person becomes top 10 shareholders due to rights issued (if applicable) | Not applicable | ||||||||||||||
| Explanation on associated relationship among the aforesaid shareholders | Among the above shareholders, CHANGHONG (HK) TRADING LIMITED (hereinafter referred to as Hong Kong Changhong) is the wholly-owned subsidiary of Sichuan Changhong Electric Co., Ltd.; except the shares of the Company directly held by Hong Kong Changhong, 6,296,913 shares of B-stock are also held through Phillip Securities (Hong Kong) Co., Ltd., the foregoing shareholders constitute persons of uniform action. There existed no associated relationship or belong to the concerted actors as specified in the Measures for the Administration of Information Disclosure of Shareholder Equity Changes of Listed Companies among Sichuan Changhong, Hong Kong Changhong and other top 7 shareholders （Excluding Phillip Securities (Hong Kong) Co., Ltd.); “Caitong Fund- Ningbo Bank-Haitong Xingtai (Anhui) Emerging Industry Investment Fund (Limited Partnership)” refers to the products of Caitong Fund Management Company subscribe for privately placement of 2016; The company neither knows whether there is any association among other shareholders, nor knows whether other shareholders belong to the persons acting in concert that is stipulated in the “Administrative Measures on Information Disclosure of Changes in Shareholding of Listed Companies”. | ||||||||||||||
| Description of the above shareholders in relation to delegate/entrusted voting rights and abstention from voting rights. | Not Applicable | ||||||||||||||
| Special note on the repurchase account among the top 10 shareholders (if applicable) | Not Applicable | ||||||||||||||
| Particular about top ten shareholders with un-restrict shares held | |||||||||||||||
| Shareholders’ name | Amount of unrestricted shares held at end of Period | Type of shares | ||
| Type | Amount | |||
| Sichuan Changhong Electric Co., Ltd. | 248,457,724 | RMB ordinary shares | 248,457,724 | |
| Hefei Industry Investment Holding (Group) Co., Ltd. | 47,823,401 | RMB ordinary shares | 47,823,401 | |
| CHANGHONG (HK) TRADING LIMITED | 27,077,797 | Domestically listed foreign share | 27,077,797 | |
| Ma Guobin | 16,813,460 | RMB ordinary shares | 16,813,460 | |
| CAO SHENGCHUN | 14,766,086 | Domestically listed foreign share | 14,766,086 | |
| Xu Aiyun | 14,038,200 | RMB ordinary shares | 14,038,200 | |
| Caitong Fund- Ningbo Bank-Haitong Xingtai (Anhui) Emerging Industry Investment Fund (Limited Partnership) | 10,733,452 | RMB ordinary shares | 10,733,452 | |
| Wang Xinzhong | 9,679,840 | RMB ordinary shares | 9,679,840 | |
| Wang Kei | 6,380,392 | RMB ordinary shares | 6,380,392 | |
| Philip Securities (H.K.) Co., Ltd. | 6,296,913 | Domestically listed foreign share | 6,296,913 | |
| Expiation on associated relationship or consistent actors within the top 10 un-restrict shareholders and between top 10 un-restrict shareholders and top 10 shareholders | Found more in “Particulars about shares held above 5% by shareholders or top 10 shares holding” | |||
| Explanation on top ten common shareholders involving margin business (if applicable) | As of December 31, 2022, among the top 10 common shareholders, Ma Guobin holds 14,173,760 shares of the Company through customer credit trading secured account of Founder Securities Co., Ltd., and 2,639,700 shares hold through common securities account, thus 16,813,460 shares of the Company are held in total. The shareholder-Wang Xinzhongi holds 9,679,840 shares of the Company through customer credit trading secured account of Sinolink Securities Co., Ltd., The shareholder-Wang Kaii holds 6,380,392 shares of the Company through customer credit trading secured account of Sinolink Securities Co., Ltd. | |||
Note 1: At end of the reporting period, the person acting in concert with controlling shareholder Sichuan Changhong-- CHANGHONG (HK) TRADING LIMITED, holds B-stock of the Company as 33,374,710 shares, among which,6,296,913 shares are held through Philip Securities (H.K.) Co., Ltd. by CHANGHONG (HK) TRADING LIMITEDNote 2: In the above table, "Particulars about shares held above 5% by shareholders or top 10 shares holding" issubject to the data on stock transfer books provided by China Securities Depository and Clearing CorporationLimited Shenzhen BranchWhether the top ten ordinary shareholders of the company and the top 10 ordinary shareholders of unrestrictedconditions have made the repurchase transactions as agreed during the reporting period.
□Yes √ No
The top ten ordinary shareholders of the company and the top 10 ordinary shareholders of unrestricted conditionshave not made the repurchase transactions as agreed during the reporting period.(ii) Controlling shareholder of the Company
1. Nature of controlling shareholders: local state-owned holding
2. Type of controlling shareholders: legal person
| Controlling | Legal | Dated | Organization | Main business |
| shareholders’ name | rep./person in charge of unit | founded | code | ||
| Sichuan Changhong Electric Co., Ltd. | Zhao Yong | April 8,1993 | 91510700205412308D | Manufacturing of household appliances; Sales of household appliances; Repair of household appliances; Manufacturing of intelligent on-board equipment; Sales of intelligent vehicle equipment; Sales of electronic products; Sales of spare parts for household appliances; Communication equipment manufacturing; Communication equipment sales; General equipment repair; Professional repair of communication transmission equipment; Lighting fixture manufacturing; Sales of lighting appliances; Household goods manufacturing; Sales of household goods; Daily product repair; Manufacturing of computer software, hardware, and peripheral equipment; Retail of computer software and hardware and auxiliary equipment; Wholesale of computer software and hardware and auxiliary equipment; Computer and office equipment maintenance; Manufacturing of special equipment for electrical machinery; Sales of mechanical equipment; Special equipment repair; Manufacturing of mechanical and electrical equipment; Sales of electrical equipment; Sales of electric power facilities and equipment; Manufacturing of refrigeration and air conditioning equipment; Sales of refrigeration and air conditioning equipment; Digital video monitoring system manufacturing; Manufacturing of metal chains and other metal products; Sales of metal products; Repair of metal products; Instrument manufacturing; Sales of instruments and meters; Repair of instruments and meters; Manufacturing of cultural and office equipment; Sales of office supplies; Retail of sports goods and equipment; Wholesale of sports goods and equipment; Stationery retail; Wholesale of stationery supplies; Housing rental; Non residential real estate leasing; Leasing services (excluding licensed leasing services); Integrated circuit design; Integrated circuit sales; Software development; Software sales; Business management consulting; Real estate development and operation; Construction engineering construction; Information technology consulting services; Financial consultation; Sales of chemical products (excluding licensed chemical products); Import and export of goods; Sales of construction materials; Sales of high-performance nonferrous metals and alloy materials; Sales of metal materials; Sales of plastic products; Sales of packaging materials and products; Sales of mechanical and electrical equipment; Sales of metal chains and other metal products; Auto parts retail, auto parts wholesale; Wholesale of electronic components; Retail of electronic components; Category I value-added telecommunications services; Category II value-added telecommunications services; Business agency services; Advertising production; Advertising design and agency; Advertising; Production and operation of radio and television programs; Internet information services; Photography and video production services; Production of audio-visual products; Intelligent unmanned aerial vehicle manufacturing; Sales of intelligent unmanned aerial vehicles; Manufacturing of broadcast and television equipment (excluding broadcast and television transmission equipment); Manufacturing of audio equipment; Sales of audio equipment (ultimately subject to the business scope registered by the industrial and commercial administration authority). | |
| Equity controlling and jointly of other | 1. As of December 31,2022, Sichuan Changhong directly holds 212,994,972 shares of Changhong Huayi Compressor | ||||
| foreign/domestic listed company by controlling shareholder in reporting period | Co., Ltd. (Stock code: 000404)- a company listed on the main board of the Shenzhen Stock Exchange, accounting for 30.60% of the equity of Changhong Huayi Compressor Co., Ltd. 2. As of December 2022, Sichuan Changhong directly and indirectly holds 1,990,518,000 ordinary shares and preferred shares in total of Changhong Jiahua Holdings Co., Ltd. (Stock code: 03991) - a company listed on the main board of Hong Kong Stock Exchange, accounting for 77.44% of the whole ordinary shares and preferred shares under the name of Changhong Jiahua Holdings Co., Ltd. 3.As of December 31, 2022, Sichuan Changhong directly holds 68,000,000 shares of Sichuan Changhong Minsheng Logistics Co., Ltd (stock code:836237)- the company with shares transferring in National Equities Exchange and Quotations, accounting for 70.274% of the equity of Sichuan Changhong Minsheng Logistics Co., Ltd. |
3. Controlling shareholder changes in reporting period
□ Applicable √ Not applicable
Controlling shareholder stays the same in Period.(iii) Actual controller of the Company and its person acting in concert
1. Nature of actual controller: local state-owned assets management
2. Type of actual controller: legal person
| Actual controller | Legal rep./person in charge of unit | Dated founded | Organization code | Main business |
| State-owned Assets Supervision & Administration Commission of Mianyang Municipality | -- | -- | -- | State-owned Assets Supervision & Administration Commission of Mianyang Municipality is entrusted by the same level government, together performs decision-making and management of state-owned asset owners, and is one organization which executes comprehensive management and supervision on its belonged state-owned assets. |
| Equity controlling of other foreign/domestic listed company by actual controller in reporting period | Not Applicable | |||
3. Changes of actual controller in Period
□ Applicable √ Not applicable
Actual controller stays the same in Period
4. Property rights and the block diagram of the control relationship between the Company and the actual control(ended as 31
st
December 2022)
| State-owned Assets Supervision & Administration Commission of Mianyang Municipality | Sichuan Provincial Finance Department | |
10%%
5. Actual controller controlling the Company by means of entrust or other assets management
□ Applicable √ Not applicable
(iv) The total number of shares pledged by controlling shareholders or the first majority shareholder andits persons acting in concert accounts for 80% of the shares held by them
□ Applicable √ Not applicable
(v)Other legal person’s shareholders with over ten percent shares held 10%.
□ Applicable √ Not applicable
(vi) Actual controller controlling the Company by means of entrust or other assets management
□ Applicable √ Not applicable
IV. The specific implementation of shares repurchased/buy-back during the reporting period(i) Implementation progress of shares buy-back
√ Applicable □ Not applicable
23.22%
%100%四川省绵阳市虹欢科技有限责任公
司
%
100%四川省绵阳市虹欢科技有限责任公
司
%
Changhong Meiling Co., Ltd.
Changhong Meiling Co., Ltd.
24.12%
四川省绵阳市虹欢科技有限责任公
司
%
24.12%
四川省绵阳市虹欢科技有限责任公
司
%
Sichuan Changhong Electronics Holding Group Co., Ltd.
Sichuan Changhong Electronics Holding Group Co., Ltd.Sichuan Changhong Electric Co., Ltd.
Sichuan Changhong Electric Co., Ltd.CHANGHONG (HK) TRADING LIMITED
CHANGHONG (HK) TRADING LIMITED
3.24%
%
3.24%
%90%
| Scheme disclosure time | Number of shares to be repurchased/buy-back | Percentage of total share capital | Amount to be repurchased/buy-back | Proposed repurchase/buy-back period | Purpose | Quantity repurchased/buy-back (shares) | The ratio of the number of shares repurchased to the underlying shares involved in the equity incentive plan (if applicable) |
| July 28,2020 anf August 25,2021 | 25,074,181 shares,;-50,148,363kshares | 2.40%-4.80% | Not less than 50 million yuan and not more than 100 million yuan. | August 18, 2020 and February 18, 2022 | Buy-back of the B-share will be canceled in accordance with the laws and registered capital of the Company will be reduced accordingly | 14,674,166 | - |
Note: The company’s 40
th session of the 9
thBOD, the 21
st
session of the 9
thBOS, and the 3
rd
extraordinary general meeting of shareholders in 2020 held on July 27,2020 and August 18, 2020 deliberated and approved the Proposal on the Repurchase of Part of Domestically Listed Foreign Shares (B Shares) of the Company. Withpurpose of continuing the implementation of B-share repurchase, the Continue Implementation and Adjustment Partially of the Repurchase Program of CertainDomestic Listed Foreign Shares (B Share) was deliberated and approved by the 11
th
session of 10
th BOD, 9
th
session of 10
thBOS and Third Extraordinary ShareholdersGeneral Meeting of 2021 dated August 24, 2021 and September 10, 2021. Found more on announcement (Notice No.:2020-047, 2020-048, 2020-049, 2020-063, 2020-066, 2020-067, 2020-068, 2020-069 and 2021-075) released on appointed media China Securities Journal, Securities Times, Hong Kong Commercial Daily and JuchaoWebsite.The company repurchased its shares for the first time from November 4, 2020 to February 18, 2022, and repurchased 14,674,166 shares of the company by centralizedbidding through a dedicated securities account for repurchase, accounting for 1.4048% of the company’s total share capital, the highest transaction price wasHK$2.36/share, the lowest transaction price was HK$1.87/share, and the total amount of self-owned funds paid was HK$32,558,454.08 (excluding transaction feessuch as stamp duty and commission). Cancellation of the aforementioned shares are being completed in Shenzhen Branch of CSDC on March 2, 2022,After deliberation and approval by the Company's 2021 annual General Meeting of shareholders held on April 28,2022, the total share capital of the Company has beenreduced from 1,044,597,881 shares to 1,029,923,715 shares.found more on announcement (Notice No.:2022-011，2022-033) released on appointed media ChinaSecurities Journal, Securities Times, Hong Kong Commercial Daily and Juchao Website.(ii) Implementation progress of reducing holdings of shares buy-back by centralized bidding
□ Applicable √ Not applicable
VIII. Situation of the Preferred Shares
□ Applicable √ Not applicable
The Company had no preferred stock in the Period
IX. Corporate Bond
□ Applicable √ Not applicable
X. Financial ReportI. Audit report
| Type of audit opinion | Standard unqualified opinion |
| Date for signing the report | March 30,2023 |
| Name of audit institute | Shine Wing Certified Public Accountants (LLP) |
| Serial of Auditing Report | XYZH/2023CDAA7B0137 |
| Name of CPA | Wang Xiaodong, Tu Xiaofeng |
Auditor’s Report
XYZH/2023CDAA7B0137To Shareholders of Changhong Meiling Co., Ltd.:
I.Auditor’s opinionWe, as the auditors, audited the financial statements of Changhong Meiling Co., Ltd. (the “Company”), whichincluded the consolidated balance sheet as of 31 December 2022, the consolidated statement of income, theconsolidated statement of cash flow and the consolidated statement of changes in equity of the Company for CurrentYear ended 31 December 2022, together with the relevant notes thereto.
We are the view that the attached financial statements are prepared in accordance with the Business AccountingStandards in all material aspects, which reflect fairly the consolidated financial position of the Company as of 31December 2022 and the operating results and cash flow of the Company for Current Year of 2022.II. Basis for audit opinionsWe conducted this audit under the requirements of the Auditing Standards of the Certified Public Accountant of thePRC. The section headed “Certified Public Accountant’s responsibility for audit of financial statement” in the auditreport has further clarified our responsibilities under these standards. Pursuant to the code of professional conductas certified public accountant in the PRC, we are independent of the Company and have performed otherresponsibility as required by our professional ethics. We believe that the audit evidence obtained by us is sufficientand adequate, which provides foundation for us to issue audit opinion.III.Key audit issuesKey audit matters are those matters that, in our professional judgment, were of most significance in our audit of the
financial statements of the current period. These matters were addressed in the context of our audit of the financialstatements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on thesematters. The key audit matter we identified is as follows:
| 1.Recognition of revenue | |
| Please refer to note (iv) 30 and note (vi) 48. | |
| Key audit matters | Audit address |
| Sales revenue of the Company was mainly sourced from sales of refrigerator, air conditioner, small household appliances and kitchen and washing machines to both domestic and overseas customers. As indicated in note (vi) 48 of the financial statement - Operating income and cost, the operating income was RMB20,215,220,192.20 in 2022. Since the truthfulness and completeness of revenue recognition has material impact on operating results, we attached great importance to recognition of sales revenue. | 1) Understand and evaluate the design and effectiveness of the operation of internal control related to revenue recognition; |
| 2) Check whether the revenue recognition conforms to the provisions of the criteria; 3) Implement analytical review procedures, including analysis of annual, monthly and seasonal revenue fluctuations of major products, changes in major customers, and changes in sales prices and gross margins; 4) 1) Implement detailed test procedures, check the supporting documents related to business revenue recognition, and determine whether the conditions for revenue recognition are met and whether the time point of revenue recognition is correct; 5) For significant accounts receivable balances and the amount of sales revenue recognized during the period, we have implemented a positive letter confirmation procedure to check whether there are significant differences from the book value. For the letter back differences (if any), we have identified the reasons for the differences and implemented further audit procedures; 6) review collection of trade receivables, confirm the conformity between the entities owing receivables and name of customers to verify whether there was collection of receivables from third parties, to review the truthfulness of the collection and revenue; 7) review collection of receivables in subsequent period; 8) make cut-off test and analysis re-review on revenue. | |
| 2.Capitalization of development expense | |
| Please refer to note (iv)21 and note (vi)20 | |
| Key audit matters | Audit address |
| The development expense occurred for research and development of non-patent technology in 2022 was RMB135,753,117.26, which was capitalized and accounted for as development expense in the consolidated financial statement. Development expense could only be capitalized upon satisfaction of all the capitalization conditions set out in note (iv) 21 to the financial statement. Since to confirm whether all the capitalization conditions are met requires the management to make significant judgment and estimate, we deem this matter important in the context of our audit. | 1) Understand the key control of capitalization of development expenditures, implement internal control audit procedures, understand the scope and accounting methods of development expenditures, understand and make research and development on related control systems and processes, and test the effectiveness of relevant internal control design and operation; |
| 2) Implementation: compare the developed projects in intangible assets with machinery models for external sales, and re-verify the truthfulness of capitalization of completely developed projects 3) Dual purpose testing: inspect the project reports and inspection and acceptance reports formed during the research and development and commercialization of developed products, and judge the sufficiency of basis for accounting of development expense | |
IV. Other informationThe management of Changhong Meiling Co., Ltd. (the “Management”) is responsible for other information whichincludes the information covered in the Company’s 2022 annual report excluding the financial statement and our
audit report.The audit opinion issued by us for the financial statement has not covered other information, for which we do notissue any form of assurance opinions.Considering our audit on financial statements, we are liable to read other information, during which, we shallconsider whether other information differs materially from the financial statements or that we understand duringour audit, or whether there is any material misstatement.Based on the works executed by us, we should report the fact if we find any material misstatement in otherinformation. In t his regards, we have nothing to report.V. Responsibilities of management and those charged with governance for the financial statementsThe management is responsible for the preparation of the financial statements in accordance with the AccountingStandards for Enterprise to secure a fair presentation, and for the design, establishment and maintenance of theinternal control necessary to enable the preparation of financial statements that are free from material misstatement,whether due to fraud or error.In preparing the financial statements, the management is responsible for assessing the Company’s ability to continueas a going concern, disclosing matters related to going concern and using the going concern assumption unless themanagement either intends to liquidate the Company or to cease operations, or has no realistic alternative but to doso.Those charged with governance are responsible for overseeing the Company’s financial reporting process.VI. Responsibilities of the auditor for the financial statementsOur objectives are to obtain reasonable assurance about whether the financial statements as a whole are free frommaterial misstatement, whether due to fraud or error, and to issue an audit report that includes our audit opinion.Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance withthe CAS will always detect a material misstatement when it exists. Misstatements can arise from fraud or error andare considered material if, individually or in the aggregate, they could reasonably be expected to influence theeconomic decisions of users taken on the basis of the financial statements.As part of an audit in accordance with the CAS, we exercise professional judgment and maintain professionalskepticism throughout the audit. We also:
(1) identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error,design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and
appropriate to provide a basis for audit opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,misrepresentations, or the override of internal control.
(2) Obtain an understanding of internal control relevant to the audit in order to design audit procedures that areappropriate in the circumstances.
(3) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates andrelated disclosures made by the management.
(4) Conclude on the appropriateness of the management’s use of the going concern assumption and, based on theaudit evidence obtained, whether a material uncertainty exists related to events or conditions that may castsignificant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertaintyexists, we are required by the CAS to draw users’ attention in audit report to the related disclosures in the financialstatements or, if such disclosures are inadequate, to modify audit opinion. Our conclusions are based on theinformation obtained up to the date of audit report. However, future events or conditions may cause the Companyto cease to continue as a going concern.
(5) Evaluate the overall presentation, structure and content of the financial statements, and whether the financialstatements represent the underlying transactions and events in a manner that achieves fair presentation.
(6) Obtain sufficient appropriate audit evidence regarding the financial information of the entities or businessactivities within the Company to express audit opinion on the financial statements. We are responsible for thedirection, supervision and performance of the group audit. We remain solely responsible for audit opinion.We communicate with those charged with governance regarding, among other matters, the planned scope and timingof the audit and significant audit findings, including any significant deficiencies in internal control that we identifyduring our audit.We also provide those charged with governance with a statement that we have complied with relevant ethicalrequirements regarding independence, and communicate with them all relationships and other matters that mayreasonably be thought to bear on our independence, related safeguard measures.From the matters communicated with those charged with governance, we determine those matters that were of mostsignificance in the audit of the financial statements of the current period and are therefore the key audit matters. Wedescribe these matters in the auditor’s report unless law or regulation precludes public disclosure about the matteror when, in extremely rare circumstances, we determine that a matter should not be communicated in the auditor’sreport because of the adverse consequences of doing so would reasonably be expected to outweigh the public interestbenefits of such communication.
| Chinese CPA: Tu Xiaofeng | ||
| Beijing China | 30 March 2023 | |
Shine Wing Certified Public Accountants(LLP)
| Shine Wing Certified Public Accountants (LLP) | Chinese CPA: Wang Xiaodong, (Engagement partner) |
II. Financial statementsUnits in Notes of Financial Statements is RMB
1. Consolidated Balance Sheet
Prepared by CHANGHONG MEILING CO., LTD. December 31, 2022
In RMB
| Items | December 31,2022 | January 1,2022 |
| Current assets: | ||
| Monetary funds | 6,839,421,779.13 | 5,938,823,396.21 |
| Settlement provisions | ||
| Capital lent | ||
| Trading financial assets | 57,660,588.67 | 17,997,086.19 |
| Derivative financial assets | ||
| Note receivable | 2,216,752.22 | |
| Account receivable | 1,306,871,945.85 | 1,440,874,691.28 |
| Receivable financing | 1,446,358,719.88 | 1,808,109,301.56 |
| Accounts paid in advance | 45,859,491.55 | 29,766,797.34 |
| Insurance receivable | ||
| Reinsurance receivables | ||
| Contract reserve of reinsurance receivable | ||
| Other account receivable | 88,354,803.24 | 111,652,635.86 |
| Including: Interest receivable | ||
| Dividend receivable | ||
| Buying back the sale of financial assets | ||
| Inventories | 1,710,306,933.71 | 1,356,357,419.80 |
| Contractual assets | 3,530,922.13 | |
| Assets held for sale | ||
| Non-current asset due within one year | 170,167,638.89 | |
| Other current assets | 120,589,431.85 | 124,240,934.45 |
| Total current assets | 11,789,122,254.90 | 10,830,039,014.91 |
| Non-current assets: | ||
| Loans and payments on behalf | ||
| Debt investment | 121,543,750.00 | |
| Other debt investment | ||
| Long-term account receivable | ||
| Long-term equity investment | 100,384,428.50 | 86,631,660.53 |
| Investment in other equity instrument | ||
| Other non-current financial assets | 628,549,448.31 | 581,980,440.70 |
| Investment real estate | 52,898,060.89 | 53,149,934.45 |
| Fixed assets | 2,229,553,866.96 | 2,303,122,699.92 |
| Construction in progress | 66,522,492.77 | 98,469,862.45 |
| Productive biological asset | ||
| Oil and gas asset | ||
| Right-of-use assets | 36,646,135.10 | 45,367,918.31 |
| Intangible assets | 900,568,008.21 | 953,403,100.33 |
| Expense on Research and Development | 102,148,390.57 | 87,728,990.86 |
| Goodwill | ||
| Long-term expenses to be apportioned | 14,900,600.59 |
| Deferred income tax asset | 156,630,537.43 | 147,488,353.28 |
| Other non-current asset | 893,238.57 | 3,087,780.59 |
| Total non-current asset | 4,411,238,957.90 | 4,360,430,741.42 |
| Total assets | 16,200,361,212.80 | 15,190,469,756.33 |
| Current liabilities: | ||
| Short-term loans | 674,143,916.67 | 622,874,652.77 |
| Loan from central bank | ||
| Capital borrowed | ||
| Trading financial liability | 41,961,524.78 | 12,304,272.41 |
| Derivative financial liability | ||
| Note payable | 4,964,374,512.60 | 4,839,837,317.78 |
| Account payable | 2,917,997,138.00 | 2,299,103,796.88 |
| Accounts received in advance | ||
| Contractual liability | 358,755,397.77 | 515,004,115.23 |
| Selling financial asset of repurchase | ||
| Absorbing deposit and interbank deposit | ||
| Security trading of agency | ||
| Security sales of agency | ||
| Wage payable | 348,154,915.13 | 247,044,421.56 |
| Taxes payable | 80,287,878.62 | 141,874,861.88 |
| Other account payable | 828,207,568.21 | 751,452,768.00 |
| Including: Interest payable | ||
| Dividend payable | 4,978,994.16 | 4,753,764.56 |
| Commission charge and commission payable | ||
| Reinsurance payable | ||
| Liability held for sale | ||
| Non-current liabilities due within one year | 30,287,099.08 | 332,718,478.25 |
| Other current liabilities | 22,605,269.51 | 24,373,759.16 |
| Total current liabilities | 10,266,775,220.37 | 9,786,588,443.92 |
| Non-current liabilities: | ||
| Insurance contract reserve | ||
| Long-term loans | 148,000,000.00 | 168,000,000.00 |
| Bonds payable | ||
| Including: Preferred stock | ||
| Perpetual capital securities | ||
| Lease liability | 28,164,287.97 | 33,225,912.15 |
| Long-term account payable | 1,145,286.48 | 1,337,643.24 |
| Long-term wages payable | 10,790,859.64 | 9,828,300.06 |
| Accrual liability | 32,685,631.78 | 11,363,601.63 |
| Deferred income | 161,013,911.91 | 175,664,038.83 |
| Deferred income tax liabilities | 12,750,747.30 | 9,670,435.45 |
| Other non-current liabilities | ||
| Total non-current liabilities | 394,550,725.08 | 409,089,931.36 |
| Total liabilities | 10,661,325,945.45 | 10,195,678,375.28 |
| Owner’s equity: | ||
| Share capital | 1,029,923,715.00 | 1,044,597,881.00 |
| Other equity instrument | ||
| Including: Preferred stock | ||
| Perpetual capital securities | ||
| Capital public reserve | 2,806,493,904.30 | 2,682,829,400.26 |
| Less: Inventory shares | 26,430,571.38 | |
| Other comprehensive income | -20,881,462.63 | -20,903,270.57 |
| Reasonable reserve | 2,467,205.78 | |
| Surplus public reserve | 441,201,471.98 | 423,111,236.90 |
| Provision of general risk | ||
| Retained profit | 909,082,037.66 | 734,129,724.00 |
| Total owner’ s equity attributable to parent company | 5,168,286,872.09 | 4,837,334,400.21 |
| Minority interests | 370,748,395.26 | 157,456,980.84 |
| Total owner’ s equity | 5,539,035,267.35 | 4,994,791,381.05 |
| Total liabilities and owner’ s equity | 16,200,361,212.80 | 15,190,469,756.33 |
Legal Representative: Wu DinggangPerson in charge of accounting works: Pang HaitaoPerson in charge of accounting institute: Yang Jun
2. Balance Sheet of Parent Company
In RMB
| Items | December 31,2022 | January 1,2022 |
| Current assets: | ||
| Monetary funds | 3,104,218,400.02 | 3,423,276,377.52 |
| Trading financial assets | 21,847,922.36 | 7,200,222.04 |
| Derivative financial assets | ||
| Note receivable | 330,000.00 | |
| Account receivable | 1,145,561,769.05 | 1,582,651,896.25 |
| Receivable financing | 1,433,254,352.52 | 1,484,609,403.08 |
| Accounts paid in advance | 66,583,414.71 | 48,212,105.70 |
| Other account receivable | 29,903,408.82 | 40,708,614.68 |
| Including: Interest receivable | ||
| Dividend receivable | ||
| Inventories | 463,576,760.77 | 351,523,851.67 |
| Contractual assets | 46,970.75 | |
| Assets held for sale | ||
| Non-current assets maturing within one year | 170,167,638.89 | |
| Other current assets | 165,510.80 | 28,957,697.04 |
| Total current assets | 6,435,326,148.69 | 6,967,470,167.98 |
| Non-current assets: | ||
| Debt investment | 121,543,750.00 | |
| Other debt investment | ||
| Long-term receivables | ||
| Long-term equity investments | 1,856,359,424.33 | 1,882,557,241.66 |
| Investment in other equity instrument | ||
| Other non-current financial assets | 608,527,275.52 | 581,980,440.70 |
| Investment real estate | 3,543,885.11 | 3,752,737.75 |
| Fixed assets | 1,127,344,454.50 | 1,209,058,847.63 |
| Construction in progress | 51,057,550.03 | 50,287,155.16 |
| Productive biological assets | ||
| Oil and natural gas assets | ||
| Right-of-use assets | 16,739,912.26 | 18,632,705.13 |
| Intangible assets | 467,075,020.10 | 477,739,048.08 |
| Research and development costs | 60,386,906.45 | 44,387,584.10 |
| Goodwill | ||
| Long-term deferred expenses | 11,686,542.49 | |
| Deferred income tax assets | 125,037,558.04 | 125,174,589.66 |
| Other non-current assets | 638,649.57 | 638,649.57 |
| Total non-current assets | 4,449,940,928.40 | 4,394,208,999.44 |
| Total assets | 10,885,267,077.09 | 11,361,679,167.42 |
| Current liabilities: | ||
| Short-term borrowings | 618,091,666.67 | 612,863,194.44 |
| Trading financial liability | 13,537,472.81 | 5,766,743.33 |
| Derivative financial liability | ||
| Notes payable | 2,230,728,460.34 | 2,409,104,654.05 |
| Account payable | 1,531,945,762.15 | 1,356,405,016.24 |
| Accounts received in advance | ||
| Contractual liability | 121,216,205.12 | 238,437,143.59 |
| Wage payable | 64,869,503.19 | 42,679,625.89 |
| Taxes payable | 20,168,907.95 | 20,596,813.11 |
| Other accounts payable | 708,015,820.72 | 909,832,533.11 |
| Including: Interest payable | ||
| Dividend payable | 4,378,994.16 | 4,153,764.56 |
| Liability held for sale | ||
| Non-current liabilities due within one year | 22,238,340.38 | 322,202,348.59 |
| Other current liabilities | 5,978,477.02 | 6,703,328.85 |
| Total current liabilities | 5,336,790,616.35 | 5,924,591,401.20 |
| Non-current liabilities: | ||
| Long-term loans | 148,000,000.00 | 168,000,000.00 |
| Bonds payable | ||
| Including: Preferred stock | ||
| Perpetual capital securities | ||
| Lease liability | 15,861,027.13 | 17,114,473.86 |
| Long-term account payable | ||
| Long term employee compensation payable | 7,184,302.85 | 8,760,963.52 |
| Accrued liabilities | 7,785,977.55 | 7,539,547.19 |
| Deferred income | 84,762,685.97 | 82,658,197.54 |
| Deferred income tax liabilities | 8,642,999.01 | 6,131,087.92 |
| Other non-current liabilities | ||
| Total non-current liabilities | 272,236,992.51 | 290,204,270.03 |
| Total liabilities | 5,609,027,608.86 | 6,214,795,671.23 |
| Owners’ equity: | ||
| Share capital | 1,029,923,715.00 | 1,044,597,881.00 |
| Other equity instrument | ||
| Including: Preferred stock | ||
| Perpetual capital securities | ||
| Capital public reserve | 2,740,508,510.57 | 2,753,002,178.30 |
| Less: Inventory shares | 26,430,571.38 | |
| Other comprehensive income | ||
| Special reserve | 687,069.38 | |
| Surplus reserve | 440,983,306.30 | 422,893,071.22 |
| Retained profit | 1,064,136,866.98 | 952,820,937.05 |
| Total owner’s equity | 5,276,239,468.23 | 5,146,883,496.19 |
| Total liabilities and owner’s equity | 10,885,267,077.09 | 11,361,679,167.42 |
Legal Representative: Wu DinggangPerson in charge of accounting works: Pang HaitaoPerson in charge of accounting institute: Yang Jun
3. Consolidated Profit Statement
In RMB
| Item | 2022 | 2021 |
| I. Total operating income | 20,215,220,192.20 | 18,032,957,501.44 |
| Including: Operating income | 20,215,220,192.20 | 18,032,957,501.44 |
| Interest income | ||
| Insurance gained | ||
| Commission charge and commission income | ||
| II. Total operating cost | 19,895,690,025.90 | 18,104,531,071.96 |
| Including: Operating cost | 17,444,530,235.32 | 15,869,745,814.47 |
| Interest expense | ||
| Commission charge and commission expense | ||
| Cash surrender value | ||
| Net amount of expense of compensation | ||
| Net amount of withdrawal of insurance contract reserve | ||
| Bonus expense of guarantee slip | ||
| Reinsurance expense | ||
| Tax and extras | 158,529,459.29 | 129,067,764.08 |
| Sales expense | 1,428,874,991.47 | 1,364,640,404.75 |
| Administrative expense | 358,586,472.37 | 333,588,775.37 |
| R&D expense | 560,383,547.49 | 465,891,096.09 |
| Financial expense | -55,214,680.04 | -58,402,782.80 |
| Including: Interest expenses | 30,470,512.88 | 71,229,760.29 |
| Interest income | 159,034,499.30 | 140,024,813.71 |
| Add: Other income | 102,556,591.53 | 108,992,292.09 |
| Investment income (Loss is listed with “-”) | 33,018,838.80 | 128,963,968.59 |
| Including: Investment income on affiliated company and joint venture | 20,440,095.97 | 12,422,382.59 |
| The termination of income recognition for financial assets measured by amortized cost | -24,385,552.13 | |
| Exchange income (Loss is listed with “-”) | ||
| Net exposure hedging income (Loss is listed with “-”) | ||
| Income from change of fair value (Loss is listed with “-”) | 24,137,501.27 | -3,133,939.42 |
| Loss of credit impairment (Loss is listed with “-”) | -164,446,765.99 | -20,983,896.93 |
| Losses of devaluation of asset (Loss is listed with “-”) | -56,496,124.06 | -57,484,042.03 |
| Income from assets disposal (Loss is listed with “-”) | 27,602,023.18 | -133,214.72 |
| III. Operating profit (Loss is listed with “-”) | 285,902,231.03 | 84,647,597.06 |
| Add: Non-operating income | 9,249,343.27 | 10,022,053.88 |
| Less: Non-operating expense | 8,487,764.98 | 5,154,068.50 |
| IV. Total profit (Loss is listed with “-”) | 286,663,809.32 | 89,515,582.44 |
| Less: Income tax expense | 9,565,346.81 | 2,422,928.94 |
| V. Net profit (Net loss is listed with “-”) | 277,098,462.51 | 87,092,653.50 |
| (i) Classify by business continuity | ||
| 1.continuous operating net profit (net loss listed with ‘-”) | 277,098,462.51 | 87,092,653.50 |
| 2.termination of net profit (net loss listed |
| with ‘-”) | ||
| (ii) Classify by ownership | ||
| 1.Net profit attributable to owner’s of parent company | 244,538,734.49 | 51,898,388.84 |
| 2.Minority shareholders’ gains and losses | 32,559,728.02 | 35,194,264.66 |
| VI. Net after-tax of other comprehensive income | 184,552.23 | 615,920.12 |
| Net after-tax of other comprehensive income attributable to owners of parent company | 21,807.94 | 547,813.60 |
| (I) Other comprehensive income items which will not be reclassified subsequently to profit of loss | ||
| 1.Changes of the defined benefit plans that re-measured | ||
| 2.Other comprehensive income under equity method that cannot be transfer to gain/loss | ||
| 3.Change of fair value of investment in other equity instrument | ||
| 4.Fair value change of enterprise's credit risk | ||
| 5. Other | ||
| (ii) Other comprehensive income items which will be reclassified subsequently to profit or loss | 21,807.94 | 547,813.60 |
| 1.Other comprehensive income under equity method that can transfer to gain/loss | ||
| 2.Change of fair value of other debt investment | ||
| 3.Amount of financial assets re-classify to other comprehensive income | ||
| 4.Credit impairment provision for other debt investment | ||
| 5.Cash flow hedging reserve | ||
| 6.Translation differences arising on translation of foreign currency financial statements | 21,807.94 | 547,813.60 |
| 7.Other | ||
| Net after-tax of other comprehensive income attributable to minority shareholders | 162,744.29 | 68,106.52 |
| VII. Total comprehensive income | 277,283,014.74 | 87,708,573.62 |
| Total comprehensive income attributable to owners of parent Company | 244,560,542.43 | 52,446,202.44 |
| Total comprehensive income attributable to minority shareholders | 32,722,472.31 | 35,262,371.18 |
| VIII. Earnings per share: | ||
| (i) Basic earnings per share | 0.2366 | 0.0497 |
| (ii) Diluted earnings per share | 0.2366 | 0.0497 |
As for the enterprise combined under the same control, net profit of 0 yuan achieved by the merged party beforecombination while 0 yuan achieved last periodLegal Representative: Wu DinggangPerson in charge of accounting works: Pang HaitaoPerson in charge of accounting institute: Yang Jun
4. Profit Statement of Parent Company
In RMB
| Item | 2022 | 2021 |
| I. Operating income | 7,398,328,633.00 | 7,828,290,567.95 |
| Less: Operating cost | 6,720,247,726.04 | 7,466,472,403.87 |
| Taxes and surcharge | 63,202,337.06 | 43,312,819.31 |
| Sales expenses | 189,954,443.11 | 114,547,496.48 |
| Administration expenses | 132,320,693.51 | 130,167,084.29 |
| R&D expenses | 245,429,316.63 | 191,827,388.68 |
| Financial expenses | -17,219,867.57 | -20,256,595.92 |
| Including: Interest expenses | 28,128,736.65 | 57,761,266.90 |
| Interest income | 77,631,152.76 | 81,650,131.24 |
| Add: Other income | 31,044,974.74 | 58,148,812.31 |
| Investment income (Loss is listed with “-”) | 79,584,251.32 | 92,743,182.98 |
| Including: Investment income on affiliated Company and joint venture | 11,196,374.66 | 14,597,022.15 |
| The termination of income recognition for financial assets measured by amortized cost (Loss is listed with “-”) | -4,767,753.29 | |
| Net exposure hedging income (Loss is listed with “-”) | ||
| Changing income of fair value (Loss is listed with “-”) | 20,986,049.21 | 187,866.00 |
| Loss of credit impairment (Loss is listed with “-”) | -40,156,897.45 | -412,613.92 |
| Losses of devaluation of asset (Loss is listed with “-”) | -192,559.56 | -9,191,483.58 |
| Income on disposal of assets (Loss is listed with “-”) | 27,531,109.99 | 14,752.64 |
| II. Operating profit (Loss is listed with “-”) | 183,190,912.47 | 43,710,487.67 |
| Add: Non-operating income | 2,611,298.85 | 2,837,084.03 |
| Less: Non-operating expense | 2,250,917.85 | 767,232.46 |
| III. Total Profit (Loss is listed with “-”) | 183,551,293.47 | 45,780,339.24 |
| Less: Income tax | 2,648,942.71 | -21,684,125.42 |
| IV. Net profit (Net loss is listed with “-”) | 180,902,350.76 | 67,464,464.66 |
| (i) continuous operating net profit (net loss listed with ‘-”) | 180,902,350.76 | 67,464,464.66 |
| (ii) termination of net profit (net loss listed with ‘-”) | ||
| V. Net after-tax of other comprehensive income | ||
| (i) Other comprehensive income items which will not be reclassified subsequently to profit of loss | ||
| 1.Changes of the defined benefit plans that re-measured | ||
| 2.Other comprehensive income under equity method that cannot be transfer to gain/loss | ||
| 3.Change of fair value of investment in other equity instrument | ||
| 4.Fair value change of enterprise's credit risk | ||
| 5. Other | ||
| (ii) Other comprehensive income items which will be reclassified subsequently to profit or loss | ||
| 1.Other comprehensive income under equity method that can transfer to |
| gain/loss | ||
| 2.Change of fair value of other debt investment | ||
| 3.Amount of financial assets re-classify to other comprehensive income | ||
| 4.Credit impairment provision for other debt investment | ||
| 5.Cash flow hedging reserve | ||
| 6.Translation differences arising on translation of foreign currency financial statements | ||
| 7.Other | ||
| VI. Total comprehensive income | 180,902,350.76 | 67,464,464.66 |
| VII. Earnings per share: | ||
| (i) Basic earnings per share | 0.1750 | 0.0646 |
| (ii) Diluted earnings per share | 0.1750 | 0.0646 |
Legal Representative: Wu DinggangPerson in charge of accounting works: Pang HaitaoPerson in charge of accounting institute: Yang Jun
5. Consolidated Cash Flow Statement
In RMB
| Item | 2022 | 2021 |
| I. Cash flows arising from operating activities: | ||
| Cash received from selling commodities and providing labor services | 21,089,427,398.84 | 18,267,890,783.43 |
| Net increase of customer deposit and interbank deposit | ||
| Net increase of loan from central bank | ||
| Net increase of capital borrowed from other financial institution | ||
| Cash received from original insurance contract fee | ||
| Net cash received from reinsurance business | ||
| Net increase of insured savings and investment | ||
| Cash received from interest, commission charge and commission | ||
| Net increase of capital borrowed | ||
| Net increase of returned business capital | ||
| Net cash received by agents in sale and purchase of securities | ||
| Write-back of tax received | 642,483,547.59 | 611,293,022.30 |
| Other cash received concerning operating activities | 218,923,533.27 | 243,549,134.14 |
| Subtotal of cash inflow arising from operating activities | 21,950,834,479.70 | 19,122,732,939.87 |
| Cash paid for purchasing commodities and receiving labor service | 17,573,333,598.31 | 16,131,183,801.59 |
| Net increase of customer loans and advances | ||
| Net increase of deposits in central bank and interbank | ||
| Cash paid for original insurance contract compensation |
| Net increase of capital lent | ||
| Cash paid for interest, commission charge and commission | ||
| Cash paid for bonus of guarantee slip | ||
| Cash paid to/for staff and workers | 1,740,232,680.16 | 1,643,453,647.47 |
| Taxes paid | 516,256,689.43 | 378,617,838.78 |
| Other cash paid concerning operating activities | 655,855,763.74 | 808,554,393.93 |
| Subtotal of cash outflow arising from operating activities | 20,485,678,731.64 | 18,961,809,681.77 |
| Net cash flows arising from operating activities | 1,465,155,748.06 | 160,923,258.10 |
| II. Cash flows arising from investing activities: | ||
| Cash received from recovering investment | 923,322,268.35 | 1,809,000,000.00 |
| Cash received from investment income | 41,956,520.69 | 27,234,864.16 |
| Net cash received from disposal of fixed, intangible and other long-term assets | 78,341,283.79 | 1,790,401.44 |
| Net cash received from disposal of subsidiaries and other units | ||
| Other cash received concerning investing activities | 161,913,535.52 | 251,294,914.65 |
| Subtotal of cash inflow from investing activities | 1,205,533,608.35 | 2,089,320,180.25 |
| Cash paid for purchasing fixed, intangible and other long-term assets | 276,171,087.23 | 262,327,894.22 |
| Cash paid for investment | 1,300,000,000.00 | 1,809,000,001.00 |
| Net increase of mortgaged loans | ||
| Net cash received from subsidiaries and other units obtained | ||
| Other cash paid concerning investing activities | 135,747,164.72 | 68,334.39 |
| Subtotal of cash outflow from investing activities | 1,711,918,251.95 | 2,071,396,229.61 |
| Net cash flows arising from investing activities | -506,384,643.60 | 17,923,950.64 |
| III. Cash flows arising from financing activities: | ||
| Cash received from absorbing investment | 368,459,272.52 | 16,650,992.51 |
| Including: Cash received from absorbing minority shareholders’ investment by subsidiaries | 368,459,272.52 | 16,650,992.51 |
| Cash received from loans | 1,255,467,515.59 | 1,669,454,955.26 |
| Other cash received concerning financing activities | 23,536,567.33 | 14,136,579.91 |
| Subtotal of cash inflow from financing activities | 1,647,463,355.44 | 1,700,242,527.68 |
| Cash paid for settling debts | 1,522,040,918.37 | 2,320,384,722.05 |
| Cash paid for dividend and profit distributing or interest paying | 109,680,687.85 | 102,019,282.33 |
| Including: Dividend and profit of minority shareholder paid by subsidiaries | 25,417,858.64 | 1,598,892.00 |
| Other cash paid concerning financing activities | 770,652,259.57 | 28,323,542.28 |
| Subtotal of cash outflow from financing activities | 2,402,373,865.79 | 2,450,727,546.66 |
| Net cash flows arising from financing activities | -754,910,510.35 | -750,485,018.98 |
| IV. Influence on cash and cash equivalents due to fluctuation in exchange rate | 69,166,544.08 | -13,697,073.29 |
| V. Net increase of cash and cash | 273,027,138.19 | -585,334,883.53 |
| equivalents | ||
| Add: Balance of cash and cash equivalents at the period -begin | 5,840,194,931.57 | 6,425,529,815.10 |
| VI. Balance of cash and cash equivalents at the period -end | 6,113,222,069.76 | 5,840,194,931.57 |
Legal Representative: Wu DinggangPerson in charge of accounting works: Pang HaitaoPerson in charge of accounting institute: Yang Jun
6. Cash Flow Statement of Parent Company
In RMB
| Item | 2022 | 2021 |
| I. Cash flows arising from operating activities: | ||
| Cash received from selling commodities and providing labor services | 7,440,766,977.75 | 6,992,278,846.46 |
| Write-back of tax received | 224,205,911.53 | 367,247,994.85 |
| Other cash received concerning operating activities | 75,592,511.92 | 104,028,498.51 |
| Subtotal of cash inflow arising from operating activities | 7,740,565,401.20 | 7,463,555,339.82 |
| Cash paid for purchasing commodities and receiving labor service | 6,385,517,418.45 | 7,483,098,738.97 |
| Cash paid to/for staff and workers | 508,284,706.96 | 470,465,273.15 |
| Taxes paid | 67,235,152.14 | 44,871,430.22 |
| Other cash paid concerning operating activities | 227,845,615.46 | 265,530,268.75 |
| Subtotal of cash outflow arising from operating activities | 7,188,882,893.01 | 8,263,965,711.09 |
| Net cash flows arising from operating activities | 551,682,508.19 | -800,410,371.27 |
| II. Cash flows arising from investing activities: | ||
| Cash received from recovering investment | 457,300,378.10 | 1,700,000,000.00 |
| Cash received from investment income | 82,054,474.12 | 27,492,076.57 |
| Net cash received from disposal of fixed, intangible and other long-term assets | 78,191,029.45 | 1,257,706.09 |
| Net cash received from disposal of subsidiaries and other units | ||
| Other cash received concerning investing activities | 82,511,271.70 | 153,610,973.82 |
| Subtotal of cash inflow from investing activities | 700,057,153.37 | 1,882,360,756.48 |
| Cash paid for purchasing fixed, intangible and other long-term assets | 164,617,367.95 | 166,190,792.44 |
| Cash paid for investment | 730,000,000.00 | 1,735,000,000.00 |
| Net cash received from subsidiaries and other units obtained | ||
| Other cash paid concerning investing activities | 49,326,025.46 | 197,627.47 |
| Subtotal of cash outflow from investing activities | 943,943,393.41 | 1,901,388,419.91 |
| Net cash flows arising from investing activities | -243,886,240.04 | -19,027,663.43 |
| III. Cash flows arising from financing activities: | ||
| Cash received from absorbing |
| investment | ||
| Cash received from loans | 1,189,467,515.59 | 1,659,454,955.26 |
| Other cash received concerning financing activities | 3,251,034.56 | 532,028,797.36 |
| Subtotal of cash inflow from financing activities | 1,192,718,550.15 | 2,191,483,752.62 |
| Cash paid for settling debts | 1,502,040,918.37 | 2,219,678,042.05 |
| Cash paid for dividend and profit distributing or interest paying | 81,201,833.46 | 98,533,426.01 |
| Other cash paid concerning financing activities | 264,626,271.90 | 224,952,054.90 |
| Subtotal of cash outflow from financing activities | 1,847,869,023.73 | 2,543,163,522.96 |
| Net cash flows arising from financing activities | -655,150,473.58 | -351,679,770.34 |
| IV. Influence on cash and cash equivalents due to fluctuation in exchange rate | 19,360,991.70 | -11,424,039.40 |
| V. Net increase of cash and cash equivalents | -327,993,213.73 | -1,182,541,844.44 |
| Add: Balance of cash and cash equivalents at the period -begin | 3,414,961,989.34 | 4,597,503,833.78 |
| VI. Balance of cash and cash equivalents at the period -end | 3,086,968,775.61 | 3,414,961,989.34 |
Legal Representative: Wu DinggangPerson in charge of accounting works: Pang HaitaoPerson in charge of accounting institute: Yang Jun
7. Statement of Changes in Owners’ Equity (Consolidated)
This Period
In RMB
| Items | 2022 | ||||||||||||||
| Owners’ equity attributable to the parent Company | Minority interests | Total owners’ equity | |||||||||||||
| Share capital | Other equity instrument | Capital reserve | Less: Inventory shares | Other comprehensive income | Reasonable reserve | Surplus reserve | Provision of general risk | Retained profit | Other | Subtotal | |||||
| Preferred stock | Perpetual capital securities | Other | |||||||||||||
| I. The ending balance of the previous year | 1,044,597,881.00 | 2,682,829,400.26 | 26,430,571.38 | -20,903,270.57 | 423,111,236.90 | 734,129,724.00 | 4,837,334,400.21 | 157,456,980.84 | 4,994,791,381.05 | ||||||
| Add: Changes of accounting policy | |||||||||||||||
| Error correction of the last period | |||||||||||||||
| Enterprise combine under the same control | |||||||||||||||
| Other | |||||||||||||||
| II. The beginning balance of the current year | 1,044,597,881.00 | 2,682,829,400.26 | 26,430,571.38 | -20,903,270.57 | 423,111,236.90 | 734,129,724.00 | 4,837,334,400.21 | 157,456,980.84 | 4,994,791,381.05 | ||||||
| III. Increase/ Decrease in the period (Decrease is listed with “-”) | -14,674,166.00 | 123,664,504.04 | -26,430,571.38 | 21,807.94 | 2,467,205.78 | 18,090,235.08 | 174,952,313.66 | 330,952,471.88 | 213,291,414.42 | 544,243,886.30 | |||||
| (i) Total comprehensive income | 21,807.94 | 244,538,734.49 | 244,560,542.43 | 32,722,472.31 | 277,283,014.74 | ||||||||||
| (ii) Owners’ devoted and decreased capital | -14,674,166.00 | 123,664,504.04 | -26,430,571.38 | 135,420,909.42 | 205,763,149.35 | 341,184,058.77 | |||||||||
| 1.Common shares invested by shareholders | -14,674,166.00 | -12,493,667.73 | -26,430,571.38 | -737,262.35 | 228,415,223.18 | 227,677,960.83 | |||||||||
| 2. Capital invested by holders of other equity instruments | |||||||||||||||
| 3. Amount reckoned into owners equity with share-based payment | |||||||||||||||
| 4. Other | 136,158,171.77 | 136,158,171.77 | -22,652,073.83 | 113,506,097.94 | |||||||||||
| (iii) Profit distribution | 18,090,235.08 | -69,586,420.83 | -51,496,185.75 | -25,417,858.64 | -76,914,044.39 | ||||||||||
| 1. Withdrawal of surplus reserves | 18,090,235.08 | -18,090,235.08 | |||||||||||||
| 2. Withdrawal of general risk provisions | |||||||||||||||
| 3. Distribution for owners (or shareholders) | -51,496,185.75 | -51,496,185.75 | -25,417,858.64 | -76,914,044.39 | |||||||||||
| 4. Other | |||||||||||||||
| (iv) Carrying forward internal owners’ equity | |||||||||||||||
| 1. Capital reserves conversed to capital (share capital) | |||||||||||||||
| 2. Surplus reserves conversed to capital (share capital) | |||||||||||||||
| 3. Remedying loss with surplus reserve | |||||||||||||||
| 4. Carry-over retained earnings from the defined benefit plans | |||||||||||||||
| 5. Carry-over retained earnings from other comprehensive income | |||||||||||||||
| 6. Other | |||||||||||||||
| (v) Reasonable reserve | 2,467,20 | 2,467,205.78 | 223,651. | 2,690,857 |
| 5.78 | 40 | .18 | |||||||||||||
| 1. Withdrawal in the report period | 2,467,205.78 | 2,467,205.78 | 223,651.40 | 2,690,857.18 | |||||||||||
| 2. Usage in the report period | |||||||||||||||
| (vi) Others | |||||||||||||||
| IV. Balance at the end of the period | 1,029,923,715.00 | 2,806,493,904.30 | -20,881,462.63 | 2,467,205.78 | 441,201,471.98 | 909,082,037.66 | 5,168,286,872.09 | 370,748,395.26 | 5,539,035,267.35 |
Last Period
In RMB
| Items | 2021 | ||||||||||||||
| Owners’ equity attributable to the parent Company | Minority interests | Total owners’ equity | |||||||||||||
| Share capital | Other equity instrument | Capital reserve | Less: Inventory shares | Other comprehensive income | Reasonable reserve | Surplus reserve | Provision of general risk | Retained profit | Other | Subtotal | |||||
| Preferred stock | Perpetual capital securities | Other | |||||||||||||
| I. The ending balance of the previous year | 1,044,597,881.00 | 2,683,837,229.12 | 9,929,336.18 | -21,451,084.17 | 416,364,790.43 | 0.00 | 740,754,202.23 | 4,854,173,682.43 | 107,921,283.49 | 4,962,094,965.92 | |||||
| Add: Changes of accounting policy | |||||||||||||||
| Error correction of the last period | |||||||||||||||
| Enterprise combine under the same control | |||||||||||||||
| Other | |||||||||||||||
| II. The beginning | 1,044,59 | 2,683,83 | 9,929,33 | - | 416,364, | 740,754, | 4,854,173 | 107,921, | 4,962,09 | ||||||
| balance of the current year | 7,881.00 | 7,229.12 | 6.18 | 21,451,084.17 | 790.43 | 202.23 | ,682.43 | 283.49 | 4,965.92 | ||||||
| III. Increase/ Decrease in the period (Decrease is listed with “-”) | -1,007,828.86 | 16,501,235.20 | 547,813.60 | 6,746,446.47 | -6,624,478.23 | -16,839,282.22 | 49,535,697.35 | 32,696,415.13 | |||||||
| (i) Total comprehensive income | 547,813.60 | 51,898,388.84 | 52,446,202.44 | 35,262,371.18 | 87,708,573.62 | ||||||||||
| (ii) Owners’ devoted and decreased capital | -1,007,828.86 | 16,501,235.20 | -17,509,064.06 | 15,872,218.17 | -1,636,845.89 | ||||||||||
| 1.Common shares invested by shareholders | -5,438.39 | 16,501,235.20 | -16,506,673.59 | 15,000,000.00 | -1,506,673.59 | ||||||||||
| 2. Capital invested by holders of other equity instruments | |||||||||||||||
| 3. Amount reckoned into owners equity with share-based payment | |||||||||||||||
| 4. Other | -1,002,390.47 | -1,002,390.47 | 872,218.17 | -130,172.30 | |||||||||||
| (iii) Profit distribution | 6,746,446.47 | -58,522,867.07 | -51,776,420.60 | -1,598,892.00 | -53,375,312.60 | ||||||||||
| 1. Withdrawal of surplus reserves | 6,746,446.47 | -6,746,446.47 | |||||||||||||
| 2. Withdrawal |
| of general risk provisions | |||||||||||||||
| 3. Distribution for owners (or shareholders) | -51,776,420.60 | -51,776,420.60 | -1,598,892.00 | -53,375,312.60 | |||||||||||
| 4. Other | |||||||||||||||
| (iv) Carrying forward internal owners’ equity | |||||||||||||||
| 1. Capital reserves conversed to capital (share capital) | |||||||||||||||
| 2. Surplus reserves conversed to capital (share capital) | |||||||||||||||
| 3. Remedying loss with surplus reserve | |||||||||||||||
| 4. Carry-over retained earnings from the defined benefit plans | |||||||||||||||
| 5. Carry-over retained earnings from other comprehensive income | |||||||||||||||
| 6. Other | |||||||||||||||
| (v) Reasonable |
| reserve | |||||||||||||||
| 1. Withdrawal in the report period | |||||||||||||||
| 2. Usage in the report period | |||||||||||||||
| (vi) Others | |||||||||||||||
| IV. Balance at the end of the period | 1,044,597,881.00 | 2,682,829,400.26 | 26,430,571.38 | -20,903,270.57 | 423,111,236.90 | 734,129,724.00 | 4,837,334,400.21 | 157,456,980.84 | 4,994,791,381.05 |
Legal Representative: Wu DinggangPerson in charge of accounting works: Pang HaitaoPerson in charge of accounting institute: Yang Jun
8. Statement of Changes in Owners’ Equity (Parent Company)
This Period
In RMB
| Items | 2022 | |||||||||||
| Share capital | Other equity instrument | Capital reserve | Less: Inventory shares | Other comprehensive income | Reasonable reserve | Surplus reserve | Retained profit | Other | Total owners’ equity | |||
| Preferred stock | Perpetual capital securities | Other | ||||||||||
| I. The ending balance of the previous year | 1,044,597,881.00 | 2,753,002,178.30 | 26,430,571.38 | 422,893,071.22 | 952,820,937.05 | 5,146,883,496.19 | ||||||
| Add: Changes of accounting policy | ||||||||||||
| Error correction of the last period | ||||||||||||
| Other | ||||||||||||
| II. The beginning balance of the current year | 1,044,597,881.00 | 2,753,002,178.30 | 26,430,571.38 | 422,893,071.22 | 952,820,937.05 | 5,146,883,496.19 | ||||||
| III. Increase/ Decrease in the period (Decrease is listed with “-”) | -14,674,166.00 | -12,493,667.73 | -26,430,571.38 | 687,069.38 | 18,090,235.08 | 111,315,929.93 | 129,355,972.04 | |||||
| (i) Total comprehensive income | 180,902,350.76 | 180,902,350.76 | ||||||||||
| (ii) Owners’ devoted and decreased capital | -14,674,166.00 | -12,493,667.73 | -26,430,571.38 | -737,262.35 | ||||||||
| 1.Common shares invested by shareholders | -14,674,166.00 | -12,493,667.73 | -26,430,571.38 | -737,262.35 | ||||||||
| 2. Capital invested by holders of other equity instruments | ||||||||||||
| 3. Amount reckoned into owners equity with share-based payment | ||||||||||||
| 4. Other | ||||||||||||
| (iii) Profit distribution | 18,090,235.08 | -69,586,420.83 | -51,496,185.75 | |||||||||
| 1. Withdrawal of surplus reserves | 18,090,235.08 | -18,090,235.08 | ||||||||||
| 2. Distribution for owners (or | -51,496,185. | -51,496,185. |
| shareholders) | 75 | 75 | ||||||||||
| 3. Other | ||||||||||||
| (iv) Carrying forward internal owners’ equity | ||||||||||||
| 1. Capital reserves conversed to capital (share capital) | ||||||||||||
| 2. Surplus reserves conversed to capital (share capital) | ||||||||||||
| 3. Remedying loss with surplus reserve | ||||||||||||
| 4. Carry-over retained earnings from the defined benefit plans | ||||||||||||
| 5. Carry-over retained earnings from other comprehensive income | ||||||||||||
| 6. Other | ||||||||||||
| (v) Reasonable reserve | 687,069.38 | 687,069.38 | ||||||||||
| 1. Withdrawal in the report period | 687,069.38 | 687,069.38 | ||||||||||
| 2. Usage in the report period | ||||||||||||
| (vi) Others | ||||||||||||
| IV. Balance at the end of the period | 1,029,923,715.00 | 2,740,508,510.57 | 687,069.38 | 440,983,306.30 | 1,064,136,866.98 | 5,276,239,468.23 |
Last period
In RMB
| Items | 2021 | |||||||||||
| Share capital | Other equity instrument | Capital reserve | Less: Inventory shares | Other comprehensive income | Reasonable reserve | Surplus reserve | Retained profit | Other | Total owners’ equity | |||
| Preferred stock | Perpetual capital securities | Other | ||||||||||
| I. The ending balance of the previous year | 1,044,597,881.00 | 2,753,137,787.99 | 9,929,336.18 | 416,146,624.75 | 943,879,339.46 | 5,147,832,297.02 | ||||||
| Add: Changes of accounting policy | ||||||||||||
| Error correction of the last period | ||||||||||||
| Other | ||||||||||||
| II. The beginning balance of the current year | 1,044,597,881.00 | 2,753,137,787.99 | 9,929,336.18 | 416,146,624.75 | 943,879,339.46 | 5,147,832,297.02 | ||||||
| III. Increase/ Decrease in the period (Decrease is listed with “-”) | -135,609.69 | 16,501,235.20 | 6,746,446.47 | 8,941,597.59 | -948,800.83 | |||||||
| (i) Total comprehensive income | 67,464,464.66 | 67,464,464.66 | ||||||||||
| (ii) Owners’ devoted and decreased capital | -135,609.69 | 16,501,235.20 | -16,636,844.89 | |||||||||
| 1.Common shares invested by shareholders | -5,438.39 | 16,501,235.20 | -16,506,673.59 | |||||||||
| 2. Capital invested by holders of other equity instruments | ||||||||||||
| 3. Amount reckoned into owners equity with share-based payment | ||||||||||||
| 4. Other | -130,171.30 | -130,171.30 | ||||||||||
| (iii) Profit distribution | 6,746,446.47 | -58,522,867.07 | -51,776,420.60 | |||||||||
| 1. Withdrawal of surplus reserves | 6,746,446.47 | -6,746,446.47 | ||||||||||
| 2. Distribution for owners (or shareholders) | -51,776,420.60 | -51,776,420.60 | ||||||||||
| 3. Other | ||||||||||||
| (iv) Carrying forward internal owners’ equity | ||||||||||||
| 1. Capital reserves conversed to capital (share capital) | ||||||||||||
| 2. Surplus reserves conversed to capital (share capital) | ||||||||||||
| 3. Remedying loss with surplus reserve | ||||||||||||
| 4. Carry-over retained earnings from the defined benefit plans | ||||||||||||
| 5. Carry-over retained earnings from other comprehensive |
| income | ||||||||||||
| 6. Other | ||||||||||||
| (v) Reasonable reserve | ||||||||||||
| 1. Withdrawal in the report period | ||||||||||||
| 2. Usage in the report period | ||||||||||||
| (vi) Others | ||||||||||||
| IV. Balance at the end of the period | 1,044,597,881.00 | 2,753,002,178.30 | 26,430,571.38 | 422,893,071.22 | 952,820,937.05 | 5,146,883,496.19 |
Legal Representative: Wu DinggangPerson in charge of accounting works: Pang HaitaoPerson in charge of accounting institute: Yang Jun
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
I. Company profileChanghong Meiling Co., Ltd (hereinafter referred to as “the Company”) ，originally named as Hefei MeilingCo., Ltd. is an incorporated Company established and reorganized by Hefei Meiling Refrigerator GeneralFactory and approved on June 12
th1992 through [WanTiGaiHanZi (1992) No.039] issued by originalMechanism Reform Committee of Anhui Province. On August 30
th
1993, through Anhui ProvincialGovernment [Wanzhenmi (1993) No.166] and re-examination of China Securities Regulatory Commission,the Company made first public issue for 30 million A shares and the Company was listed on Oct. 18
th
, 1993 inShenzhen Stock Exchange. On August 13
th
, 1996, the Company was approved to issue 100 million B shares toinvestors abroad through [ZhengWeiFa (1996) No.26] issued by China Securities Regulatory Commission. TheCompany went public in Shenzhen Stock Exchange on August 28
th
, 1996.State-owned Assets Supervision & Administration Commission of the State Council approved such transferswith Document Guozi Chanquan (2007) No.253 Reply on Matters of Hefei Meiling Group Holdings LimitedTransferring Partial State-owned Ownership, Hefei Meiling Group Holdings Limited (hereinafter referred toas Meiling Group) transferred its holding 37,852,683 shares in 82,852,683 state-owned shares of the Companyto Sichuan Changhong Electronic Group Co., Ltd (hereinafter referred to as Changhong Group), other45,000,000 shares to Sichuan Changhong Electric Co. Ltd (hereinafter referred to as Sichuan Changhong). OnAug 15, 2007, the above ownership was transferred and Cleaning Corporation Limited.
On 27 August 2007, State-owned Assets Supervision & Administration Commission of Anhui ProvincialGovernment replied with Document [WGZCQH (2007) No.309] Reply on “Related Matters of Share MergerReform of Hefei Meiling Co., Ltd.”, agreed the Company’s ownership split reform plan. The Company madeconsideration that non-tradable share holders deliver 1.5 shares to A share holders per 10 shares, and originalMeiling Group made prepayment 3,360,329 shares for some non-tradable share holders as consideration forsplit reform plan.On 29 May 2008, concerning 34,359,384 state-owned shares (including 3,360,329 shares paid for other non-tradable shareholders by original Meiling Group in share reform) held by original Meiling Group, the “Noticeof Freely Transfer of Meiling Electrics Equity held by Meiling Group”[HGZCQ(2008) No. 59] issued fromState-owned Assets Supervision & Administration Commission of Hefei Municipal, agrees to transfer theabove said shares to Hefei Xingtai Holding Group Co., Ltd.(“Xingtai Holding Co.,”) for free. On 7 August2008, the “Reply of Transfer Freely of Part of the Shares of Hefei Meiling Co., Ltd. held by State-ownedshareholders” [GZCQ (2007) No. 752] issued by SASAC, agrees the above said transferring.On October 29, 2008, Changhong Group signed Agreement on Equity Transfer of Hefei Meiling Co., Ltd withSichuan Changhong, in which 32,078,846 tradable A-shares with conditional subscription of the Company(accounting for 7.76% in total shares) held by Changhong Group. On 23 December 2008, “Reply of TransferFreely of Part of the Shares of Hefei Meiling Co., Ltd. held by State-owned shareholders” [GZCQ (2008) No.1413] issued by SASAC agrees the above said share transferring.
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
On 24 December 2010, being deliberated and approved in 32
nd
Session of 6
th
BOD and 2
nd
ExtraordinaryShareholders’ General Meeting of 2010 as well as approval of document [ZJXK (2010) No. 1715] from CSRC,totally 116,731,500 RMB ordinary shares (A stock) were offering privately to target investors with issue priceof RMB 10.28/share. Capital collecting amounting to RMB 1,199,999,820 after issuing expenses RMB22,045,500 deducted, net capital collected amounting to RMB 1,177,954,320, and paid-in capital (share capital)increased RMB 116,731,500 with capital reserve (share premium) RMB 1,061,106,088.5 increased. Theincreasing capital has been verified by Capital Verification Report No.: ［XYZH2010CDA6021］issued fromShin Wing CPA Co., Ltd.On 20 June 2011, the general meeting of the Company considered and approved the 2010 profit distributionplan, namely to distribute cash dividends of RMB0.5 (tax included) plus two shares for every ten shares heldby shareholders to all shareholders, based on the total share capital of 530,374,449 shares as of 31 December2010. The total share capital of the Company upon profit distribution increased to 636,449,338 shares. Thecapital increase was verified by Anhui Huashen Zhengda Accounting Firm with the verification reportWHSZDKYZ (2011) No.141.On 26 June 2012, the general meeting of the Company considered and approved the 2011 profit distributionand capitalization of capital reserve plan, namely to distribute cash dividends of RMB0.5 (tax included) plustwo shares for every ten shares to all shareholders capitalized from capital reserve, based on the total sharecapital of 636,449,338 shares as of 31 December 2011. The total share capital of the Company uponimplementation of capitalization of capital reserve increased to 763,739,205 shares from 636,449,338 shares,and was verified by Anhui Anlian Xinda Accounting Firm with the verification report WALXDYZ (2012)No.093.On November 18, 2015, considered and approved by the 12
th
Session of the 8
thBOD of the company and thefirst extraordinary general meeting in 2016, and approved by the document of China Securities RegulatoryCommission [CSRC License No. (2016) 1396] “Reply to the approval of non-public offering of shares of HefeiMeiling Co., Ltd.”, the company has actually raised funds of 1,569,999,998.84 yuan by non-public offering ofno more than 334,042,553 new shares at face value of 1 yuan per share and with issue price no less than 4.70yuan per share, after deducting the issue costs of 29,267,276.08 yuan, the net amount of raised funds is1,540,732,722.76 yuan, the increased paid-in capital (share capital) of 280,858,676.00 yuan, increased capitalreserve (share premium) of 1,259,874,046.76 yuan. This capital increase has been verified by No.［XYZH2016CDA40272］capital verification report of Shine Wing Certified Public Accountants (LLP).Since the first repurchase of shares on November 4, 2020, the company had cumulatively repurchased14,674,166 shares of the company (B shares) in centralized bidding transactions through the special securitiesaccount for repurchase until February 18, 2022, and completed the cancellation procedures of the repurchasedshares at the Shenzhen Branch of China Securities Depository and Clearing Co., Ltd. on March 2, 2022, a totalof 14,674,166 shares of the company (B shares) were cancelled, accounting for 1.4048% of the company's totalshare capital before cancellation. After the cancellation, the total share capital of the company was reducedfrom 1,044,597,881 shares to 1,029,923,715 shares.
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
Ended as December 31, 2022, total share capital of the Company amounting to 1,029,923,715shares withordinary shares in full. Among which, 881,733,881 shares of A-share accounting 85.61% in total shares whileB-share with 148,189,834 shares accounting 14.38% in total shares. Specific capital structure is as follows:
| Type of stock | Quantity | Proportion |
| (I)Restricted shares | 7,192,492 | 0.70% |
| 1. State-owned shares | ||
| 2. State-owned legal person’s shares | 1,141,053 | 0.11% |
| 3. Other domestic shares | 4,784,019 | 0.47% |
| Including: Domestic legal person’s shares | 3,363,539 | 0.33% |
| Domestic natural person’s shares | 1,420,480 | 0.14% |
| 4. Foreign shares | 1,267,420 | 0.12% |
| Including: Overseas legal person’s shares | ||
| Overseas natural person’s shares | 1,267,420 | 0.12% |
| (II)Unrestricted shares | 1,022,731,223 | 99.30% |
| 1. RMB Ordinary shares | 875,808,809 | 85.04% |
| 2. Domestically listed foreign shares | 146,922,414 | 14.26% |
| 3. Overseas listed foreign shares | ||
| 4. Others | ||
| Total shares | 1,029,923,715 | 100.00% |
The Company belongs to the manufacture of light industry, and engaged in the production and sale ofrefrigerator, freezer and air-conditioner. Unified social credit code of the Company: 9134000014918555XK;Address: No.2163, Lianhua Road, Economy and Technology Development Zone, Hefei City; LegalRepresentative: Wu Dinggang; register capital (paid-in capital): 1,029,923,715 yuan; type of company: limitedliability company(joint venture and listed of Taiwan, Hong Kong and Macao) Business Scope: R&D,manufacture and sales of cooling apparatus, air-conditioner, washing machine, water heater, kitchenware,home decoration, bathroom, lamps & lanterns, household & similar appliance, injection plastic machine ofcomputer controlling, plastic products, metalwork, packaging products and decorations as well as theinstallation and technical consultant services. Business of self-produced products, technology export andimport-export of the raw& auxiliary materials, machinery equipment, instrument and technology; departmentsales and transportation (Excluding dangerous chemicals), computer network system integration, intelligentproduct system integration, software development and technical information services, development,production, sales and service of automation equipment and electronic products, sales services of cold chaintransport vehicles and refrigerator and freezer van,development, production, sales and service of cold chaininsulation boxes, research and development, production, sales and service of cold storage, commercial freezerchain display cabinets, commercial cold chain products.(Projects that require approval in accordance with thelaw can only be operated after approval by relevant departments)II. Scope of consolidated financial statement
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
In the reporting period, the consolidated financial statements of the Company cover 24 subsidiaries, includingSichuan Changhong Air-conditioner Co., Ltd, Zhongshan Changhong Electric Co., Ltd. and Zhongke MeilingCryogenic Technology Co., Ltd, and the rest. Compared with the previous year, one subsidiary Jinan XiangyouElectric Appliances Marketing Co., Ltd was decreased in the consolidation scope for liquidation. TheZhengzhou Meiling Electric Appliances Marketing Co., Ltd was decreased for mergers & acquisition.
More details can be seen in the report “VII. Changes in the scope of the merger” and “XIII. Equity in otherentities”carry in the Note
III. Basis for preparation of financial statement
1. Basis for preparation
The financial statements of the Company were prepared in accordance with the actual transactions andproceedings, and relevant regulation of Accounting Standards for Business Enterprise released by the Ministryof Finance, and was on the basis of sustainable operation, and the accounting policy and estimation stated inthe “IV. Significant Accounting Policy and Accounting Estimation”
2.Continuous operation
The Company recently has a history of profitability operation and has financial resources supporting, andprepared the financial statement on basis of going concern is reasonable.IV. Significant Accounting Policy and accounting Estimation
1. Statement on observation of accounting standards for enterprise
The financial statement prepared by the Company applies with the requirements of Accounting Standard forBusiness Enterprise, and reflects the financial condition, operational achievements and cash flow of theCompany effectively and completely.
2. Accounting period
The accounting period of the Company is the calendar date from 1 January to 31 December.
3. Operation cycle
Operation cycle of the Company was 12 months, and it is the standard of flow classification for assets andliabilities.
4. Standard currency for accounting
The Company takes RMB as the standard currency for accounting.
5. Accountant arrangement method of business combination under common control and not undercommon control
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
As acquirer, the Company measures the assets and liabilities acquired through business combination undercommon control at their carrying values as reflected in the consolidated financial statement of the ultimatecontroller as of the combination date. Capital reserve shall be adjusted in respect of any difference betweencarrying value of the net assets acquired and carrying value of the combination consideration paid. In case thatcapital reserve is insufficient to offset, the Company would adjust retained earnings.
The acquiree’s net identifiable assets, liabilities or contingent liabilities acquired through business combinationnot under common control shall be measured at fair value as of the acquisition date. The cost of combinationrepresents the fair value of the cash or non-cash assets paid, liabilities issued or committed and equity securitiesissued by the Company as at the date of combination in consideration for acquiring the controlling power inthe acquiree, together with the sum of any directly related expenses occurred during business combination(incase of such business combination as gradually realized through various transactions, the combination costrefers to the sum of each cost of respective separate transaction). Where the cost of the combination exceedsthe acquirer’s interest in the fair value of the acquirer’s identifiable net assets acquired, the difference isrecognized as goodwill; where the cost of combination is lower than the acquirer’s interest in the fair value ofthe acquiree’s identifiable net assets, the Company shall firstly make further review on the fair values of thenet identifiable assets, liabilities or contingent liabilities acquired as well as the fair value of the non-cash assetsportion of combination consideration or the equity securities issued by the Company. In case that the Companyfinds the cost of combination is still lower than the acquirer’s interest in the fair value of the acquiree’sidentifiable net assets after such further review, the difference is recognized in non-operating income for thecurrent period when combination occurs.
6. Measures on Preparation of Consolidated Financial Statements
The Company shall put all the subsidiaries controlled and main body structured into consolidated financialstatements.Any difference arising from the inconformity of accounting year or accounting policies between thesubsidiaries and the Company shall be adjusted in the consolidated financial statements.All the material inter-company transactions, non-extraordinary items and unrealized profit within thecombination scope are written-off when preparing consolidated financial statement. Owners’ equity ofsubsidiary not attributable to parent company and current net gains and losses, other comprehensive incomeand total comprehensive income attributable to minority shareholders are recognized as non-controllinginterests, minority interests, other comprehensive income attributable to minority shareholders and totalcomprehensive income attributable to minority shareholders in consolidated financial statement respectively.As for subsidiary acquired through business combination under common control, its operating results andcash flow will be included in consolidated financial statement since the beginning of the period whencombination occurs. When preparing comparative consolidated financial statement, the relevant items inprevious years financial statement shall be adjusted as if the reporting entity formed upon combination hasbeen existing since the ultimate controller commenced relevant control.
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
As for equity interests of the investee under common control acquired through various transactions whicheventually formed business combination, the Company shall supplement disclosure of the accounting treatmentin consolidated financial statement in the reporting period when controlling power is obtained. For example,as for equity interests of the investee under common control acquired through various transactions whicheventually formed business combination, adjustments shall be made as if the current status had been existingwhen the ultimate controller commenced control in connection of preparing consolidated financial statement;in connection with preparing comparative statement, the Company shall consolidate the relevant assets andliabilities of the acquiree into the Company’s comparative consolidated financial statement to the extent notearlier than the timing when the Company and the acquiree are all under control of the ultimate controller, andthe net assets increased due to combination shall be used to adjust relevant items under owners’ equity incomparative statement. In order to prevent double computation of the value of the acquiree’s net assets, therelevant profits and losses, other comprehensive income and change of other net assets recognized during theperiod from the date when the Company acquires original equity interests and the date when the Company andthe acquiree are all under ultimate control of the same party (whichever is later) to the date of combination inrespect of the long-term equity investment held by the Company before satisfaction of combination shall beutilized to offset the beginning retained earnings and current gains and losses in the period as the comparativefinancial statement involves, respectively.
As for subsidiary acquired through business combination not under common control, its operating resultsand cash flow will be included in consolidated financial statement since the Company obtains controlling power.When preparing consolidated financial statement, the Company shall adjust the subsidiary’s financial statementbased on the fair value of the various identifiable assets, liabilities or contingent liabilities recognized as of theacquisition date.
As for equity interests of the investee not under common control acquired through various transactions whicheventually formed business combination, the Company shall supplement disclosure of the accounting treatmentin consolidated financial statement in the reporting period when controlling power is obtained. For example,as for equity interests of the investee not under common control acquired through various transactions whicheventually formed business combination, when preparing consolidated financial statement, the Companywould re-measure the equity interests held in the acquiree before acquisition date at their fair value as of theacquisition date, and any difference between the fair value and carrying value is included in current investmentincome. in case that the equity interests in acquiree held by the Company before the relevant acquisition dateinvolves other comprehensive income at equity method and change of other owners’ equity (other than netgains and losses, other comprehensive income and profit distribution), then the equity interests would transferto investment gains and losses for the period which the acquisition date falls upon. The other comprehensiveincome arising from change of the net liabilities or net assets under established benefit scheme as acquiree’sre-measured such scheme is excluded.
The transaction with non-controlling interest to dispose long-term equity investment in a subsidiary withoutlosing control rights over the subsidiary, the difference between the proceeds from disposal of interests and thedecrease of the shared net assets of the subsidiary is adjusted to capital premium (share premium). In case
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
capital reserve is not sufficient to offset the difference, retained earnings will be adjusted.
As for disposal of part equity investment which leads to losing control over the investee, the Company wouldre-measure the remaining equity interests at their fair value as of the date when the Company loses controlover the investee when preparing consolidated financial statement. The sum of consideration received fromdisposal of equity interest and fair value of the remaining equity interest, less the net assets of the originalsubsidiary attributable to the Company calculated based on the original shareholding proportion since theacquisition date or the date then consolidation commences, is included in investment gains and losses for theperiod when control is lost, meanwhile to offset goodwill. Other comprehensive income related to equityinterest investment in original subsidiaries is transferred into current investment gains and losses upon lost ofcontrol.If the disposal of the equity investment of subsidiary is realized through multi pletran section sunlit loss ofcontrol and is a pack age deal. the accounting treatment of the sterna sections should be dealt with as onetransaction of disposal of the subsidiary until loss of control. However, before the Company loses total controlof the subsidiary, the differences between the actual disposal price and the share of the net assets of thesubsidiary disposed of in every transaction should be recognized as other comprehensive income in theconsolidated financial statements, and transferred to profit or loss when losing control.
7. Accounting treatment for joint venture arrangement and joint controlled entityThe joint venture arrangement of the Company consists of joint controlled entity and joint venture. As forjointly controlled entity, the Company determines the assets held and liabilities assumed separately as a partyto the jointly controlled entity, recognizes such assets and liabilities according to its proportion, and recognizesrelevant income and expense separately under relevant agreement or according to its proportion. As for assettransaction relating to purchase and sales with the jointly controlled entity which does not constitute businessactivity, part of the gains and losses arising from such transaction attributable to other participators of thejointly controlled entity is only recognized.
8.Cash and cash equivalents
Cash in the cash flow statement comprises the Group’s cash on hand and deposits that can be readily withdrawn on demand. Cash equivalents are short-term, highly liquid investments held by the Group, that arereadily convertible to known amounts of cash and which are subject to aninsignificantriskofchanges in value,including but not limited to the followings which meet the aforesaid conditions: debt investment maturedwithin three months upon the acquisition date, bank time deposit which can be early withdrew by serving anotice and transferrable deposit receipt, etc. for time deposit which can not be used for payment at any time, itwould be note recognized as cash; while if can be used for such purpose, it would be recognized as cash.Guarantee deposit over three months in other monetary capital shall not be recognized as cash equivalents, andthose less than three months are recognized as cash equivalents.
9. Foreign currency business and foreign currency financial statement conversion
(1) Foreign currency business
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
As for the foreign currency business, the Company converts the foreign currency amount into RMB amountpursuant to the spot exchange rate as of the business day. As at the balance sheet date, monetary items expressedby foreign currency are converted into RMB pursuant to the spot exchange rate as of the balance sheet date.The conversion difference occurred is recorded into prevailing gains and losses, other than the disclosure whichis made according to capitalization rules for the exchange difference occurred from the special foreign currencyborrowings borrowed for constructing and producing the assets satisfying condition of capitalization. As forthe foreign currency non-monetary items measured by fair value, the amount is then converted into RMBaccording to the spot exchange rate as of the confirmation day for fair value. And the conversion differenceoccurred during the procedure is recorded into prevailing gains and losses directly as change of fair value. Asfor the foreign currency non-monetary items measured by historical cost, conversion is made with the spotexchange rate as of the business day, with no change in RMB amount.
(2) Conversion of foreign currency financial statement
Spot exchange rate as of the balance sheet date is adopted for conversion of assets and liabilities in foreigncurrency balance sheet; as for the items in statement of owners’ equity except for “Retained profit”, conversionis made pursuant to the spot exchange rate of business day; income and expense items in income statementthen are also converted pursuant to the spot exchange rate of transaction day. Difference arising from theaforementioned conversions shall be listed separately in items of owners’ equity. Spot exchange rate as of theoccurrence date of cash flow is adopted for conversion of foreign currency cash flow. The amount of cashaffected by exchange rate movement shall be listed separately in cash flow statement.
10. Financial assets and liabilities
A financial asset or liability is recognized when the group becomes a party to a financial instrument contract.The financial assets and financial liabilities are measured at fair value on initial recognition. For the financialassets and liabilities measured by fair value and with variation reckoned into current gains/losses, the relatedtransaction expenses are directly included in current gains or losses; for other types of financial assets andliabilities, the related transaction costs are included in the initial recognition amount.
(1) Method for determining the fair value of financial assets and financial liabilities
Fair value refers to the price that a market participant can get by selling an asset or has to pay for transferringa liability in an orderly transaction that occurs on the measurement date. For a financial instrument having anactive market, the Company uses the quoted prices in the active market to determine its fair value. Quotationsin an active market refer to prices that are readily available from exchanges, brokers, industry associations,pricing services, etc., and represent the prices of market transactions that actually occur in an arm's lengthtransaction. If there is no active market for a financial instrument, the Company uses valuation techniques todetermine its fair value. Valuation techniques include reference to prices used in recent market transactions byparties familiar with the situation and through voluntary trade, and reference to current fair values of otherfinancial instruments that are substantially identical, discounted cash flow methods, and option pricing models.
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
(2) Category and measurement on financial assets
The group divided the financial assets as the follow while initially recognized: the financial assets measured atamortized cost; the financial assets measured at fair value and whose changes are included in othercomprehensive income; and the financial assets measured by fair value and with variation reckoned into currentgains/losses. The classification of financial assets depends on the business model that the Group's enterprisesmanage the financial assets and the cash flow characteristics of the financial assets.
1) The financial assets measured at amortized cost
Financial assets are classified as financial assets measured at amortized cost when they also meet the followingconditions: The group's business model for managing the financial assets is to collect contractual cash flows;the contractual terms of the financial assets stipulate that cash flow generated on a specific date is only paidfor the principal and interest based on the outstanding principal amount. For such financial assets, the effectiveinterest method is used for subsequent measurement according to the amortized cost, and the gains or lossesarising from amortization or impairment are included in current profits and losses. Such financial assets mainlyinclude monetary funds, notes receivable, accounts receivable, other receivables, debt investment and long-term receivables, and so on. The Group lists the debt investment and long-term receivables due within one year(including one year) from the balance sheet date as non-current assets due within one year, and lists the debtinvestment with time limit within one year (including one year) when acquired as other current assets.
2) Financial assets measured at fair value and whose changes are included in other comprehensive incomeFinancial assets are classified as financial assets measured at fair value and whose changes are included inother comprehensive income when they also meet the following conditions: The Group's business model formanaging the financial assets is targeted at both the collection of contractual cash flows and the sale of financialassets; the contractual terms of the financial asset stipulate that the cash flow generated on a specific date isonly the payment of the principal and the interest based on the outstanding principal amount. For such financialassets, fair value is used for subsequent measurement. The discount or premium is amortized by using theeffective interest method and is recognized as interest income or expenses. Except the impairment losses andthe exchange differences of foreign currency monetary financial assets are recognized as the current profitsand losses, the changes in the fair value of such financial assets are recognized as other comprehensive incomeuntil the financial assets are derecognized, the accumulated gains or losses are transferred to the current profitsand losses. Interest income related to such financial assets is included in the current profit and loss. Suchfinancial assets are listed as other debt investments, other debt investments due within one year (including oneyear) from the balance sheet date are listed as non-current assets due within one year; and other debtinvestments with time limit within one year (including one year) when acquired are listed as other currentassets.
3) Financial assets measured at fair value and whose changes are included in current gains/losses
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
Financial assets except for the above-mentioned financial assets measured at amortized cost and financialassets measured at fair value and whose changes are included in other comprehensive income are classified asfinancial assets measured at fair value and whose changes are included in current profits and losses, whichadopt fair value for subsequent measurement and all changes in fair value are included in current profits andlosses. The Group classifies non-trading equity instruments as financial assets measured at fair value and whosechanges are included in current profits and losses. Such financial assets are presented as trading financial assets,and those expire after more than one year and are expected to be held for more than one year are presented asother non-current financial assets.
(3) Devaluation of financial instrument
On the basis of expected credit losses, the Group performs impairment treatment on financial assets measuredat amortized cost and financial assets measured at fair value and whose changes are included in othercomprehensive income and recognize the provisions for loss.Credit loss refers to the difference between all contractual cash flows that the Company discounts at the originalactual interest rate and are receivable in accordance with contract and all cash flows expected to be received,that is, the present value of all cash shortages. Among them, for the purchase or source of financial assets thathave suffered credit impairment, the Company discounts the financial assets at the actual interest rate adjustedby credit.The Group considers all reasonable and evidenced information, including forward-looking information, basedon credit risk characteristics. When assessing the expected credit losses of receivables, they are classifiedaccording to the specific credit risk characteristics as follows:
1) For receivables and contractual assets and lease receivables (including significant financing componentsand not including significant financing components), the Group measures the provisions for loss based on theamount of expected credit losses equivalent to the entire duration.
①Evaluate expected credit losses based on individual items: credit notes receivable (including accepted lettersof credit) of financial institutions in notes receivable and accounts receivable, and related party payments(related parties under the same control and significant related parties); dividends receivable, interest receivable,reserve funds, investment loans, cash deposits (including warranty), government grants (including dismantlingsubsidies) in other receivables, and receivables with significant financing components (i.e. long-termreceivables);
②Evaluate expected credit losses based on customer credit characteristics and ageing combinations: inaddition to evaluating expected credit losses based on individual items, the Group evaluates the expected creditlosses of notes receivable and accounts receivable and other receivables financial instruments based oncustomer credit characteristics and ageing combinations.
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
The Group considers all reasonable and evidenced information, including forward-looking information, whenassessing expected credit losses. When there is objective evidence that its customer credit characteristics andageing combination cannot reasonably reflect its expected credit loss, the current value of the expected futurecash flow is measured by a single item, and the cash flow shortage is directly written down the book balanceof the financial asset.
2) Assess the expected credit losses on a case-by-case basis for other assets to which the financial instrumentsare impaired, such as the loan commitments and financial guarantee contracts that are not measured at fairvalue through profit or loss, financial assets measured at fair value and whose changes are recognized in othercomprehensive income; other financial assets measured at amortized cost (such as other current assets, othernon-current financial assets, etc.).
(4) Reorganization basis and measure method for transfer of financial assets
The financial assets meet one of following requirements will be terminated recognition: ① The contract rightsof collecting cash flow of the financial assets is terminated; ②The financial assets has already been transferred,and the Company has transferred almost all risks and remunerations of financial assets ownership to thetransferee; ③The financial assets has been transferred, even though the Company has neither transferred norkept almost all risks and remunerations of financial assets ownership, the Company has given up controllingthe financial assets.If the enterprise has neither transferred or kept almost all risks and remunerations of financial assets ownership,nor given up controlling the financial assets, then confirm the relevant financial assets according to how itcontinues to involve into the transferred financial assets and confirm the relevant liabilities accordingly. Theextent of continuing involvement in the transferred financial assets refers to the level of risk arising from thechanges in financial assets value faced by the enterprise.If the entire transfer of financial assets satisfies the demand for derecognition, reckon the balance between thebook value of the transferred financial assets and the sum of consideration received from transfer andfluctuation accumulated amount of fair value formerly reckoned in other consolidated income in the currentprofits and losses.
If part transfer of financial assets satisfies the demand for derecognition, apportion the integral book value ofthe transferred financial assets between the derecognized parts and the parts not yet derecognized according toeach relative fair value, and reckon the balance between the sum of consideration received from transfer andfluctuation accumulated amount of fair value formerly reckoned in other consolidated income that should beapportioned to the derecognized parts and the apportioned aforementioned carrying amounts in the currentprofits and losses.When the Group sells financial assets adopting the mode of recourse, or endorses and transfers its financialassets, it is necessary to ensure whether almost all the risks and rewards of ownership of the financial assets
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
have been transferred. If almost all the risks and rewards of ownership of the financial assets have beentransferred to the transferee, the financial assets shall be derecognized; if almost all the risks and rewards ofownership of the financial assets are retained, the financial assets shall not be derecognized; if almost all therisks and rewards of ownership of the financial assets are neither transferred nor retained, continue to judgewhether the company retains control over the assets, and conduct accounting treatment according to theprinciples described in the preceding paragraphs.
(5) Category and measurement of financial liability
Financial liability is classified into financial liability measured by fair value and with variation reckoned intocurrent gains/losses and other financial liability at initially measurement. Financial liability shall be initiallyrecognized and measured at fair value. As for the financial liability measured by fair value and with variationreckoned into current gains/losses, relevant trading costs are directly reckoned into current gains/losses whileother financial liability shall be reckoned into the initial amount recognized.
① the financial liability measured by fair value and with variation reckoned into current gains/lossesThe conditions to be classified as trading financial liabilities and as financial liabilities designated to bemeasured at fair value and whose changes are included in current profit or loss at the initial recognition areconsistent with the conditions to be classified as trading financial assets and as financial assets designated tobe measured at fair value and whose changes are included in current profit or loss at the initial recognition.Financial liabilities measured at fair value and whose changes are included in current profit or loss aresubsequently measured at fair value, and the gain or loss arising from changes in fair value and the dividendsand interest expense related to these financial liabilities are included in current profit or loss.
② Other financial liability
It must go through the delivery of the derivative financial liabilities settled by the equity instrument to link tothe equity instruments that are not quoted in an active market and whose fair value cannot be reliably measured,and the subsequent measurement is carried out in accordance with the cost. Other financial liabilities aresubsequently measured at amortized cost by using the effective interest method. The gain or loss arising fromderecognition or amortization is included in current profit or loss.
③Financial guarantee contract
The financial guarantee contract of a financial liability which is not designated to be measured at fair valuethrough profit or loss is initially recognized at fair value, and its subsequent measurement is carried out by thehigher one between the amount confirmed in accordance with the Accounting Standards for BusinessEnterprises No. 13 — Contingencies after initial recognition and the balance after deducting the accumulatedamortization amount determined in accordance with the principle of Accounting Standards for Business
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
Enterprises No. 14—Revenue from the initial recognition amount.
(6) Termination of recognition of financial liability
The financial liability or part of it can only be terminated for recognized when all or part of the currentobligation of the financial liability has been discharged. The Group (debtor) and the creditor sign an agreementto replace the existing financial liabilities with new financial liabilities, and if the contract terms of the newfinancial liabilities are substantially different from the existing financial liabilities, terminated for recognizedthe existing financial liabilities and at the same time recognize the new financial liabilities. If the financialliability is terminated for recognized in whole or in part, the difference between the carrying amount of the partthat terminated for recognized and the consideration paid (including the transferred non-cash assets or theassumed new financial liabilities) is included in current profits and losses.
(7) Off-set between the financial assets and liabilities
When the Company has a legal right to offset a recognized financial asset and a financial liability and suchlegal right is currently enforceable, and the Company plans to settle the financial asset on a net basis or torealize the financial asset and settle the financial liability simultaneously, the financial asset and the financialliability are presented in the balance sheet at their respective offsetting amounts. In addition, the financial assetsand financial liabilities are presented in the balance sheet separately, and are not offset against each other.
(8) Derivatives and embedded derivatives
Derivatives are initially measured at fair value on the signing date of the relevant contract, and are subsequentlymeasured at fair value. Except for derivatives that are designated as hedging instruments and are highlyeffective in hedging, the gains or losses arising from changes in fair value will be determined based on thenature of the hedging relationship in accordance with the requirements of the hedge accounting and be includedin the period of profit and loss, other changes in fair value of derivatives are included in current profits andlosses. For a hybrid instrument that includes an embedded derivative, if it is not designated as a financial assetor financial liability measured at fair value and whose changes are included in current profit or loss, theembedded derivative does not have a close relationship with the main contract in terms of economiccharacteristics and risks, and as with embedded derivatives, if the tools existing separately conform to thedefinition of the derivatives, the embedded derivatives are split from the hybrid instruments and are treated asseparate derivative financial instruments. If it is not possible to measure the embedded derivative separately atthe time of acquisition or subsequent balance sheet date, the whole hybrid instrument is designated as afinancial asset or financial liability measured at fair value and whose changes are included in current profitsand losses.
(9) Equity instrument
The equity instrument is the contract to prove the holding of the surplus stock of the assets with the deduction
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
of all liabilities in the Group. The Company issues (including refinancing), repurchases, sells or cancels equityinstruments as movement of equity. No fair value change of equity instrument would be recognized by theCompany. Transaction costs associated with equity transactions are deducted from equity. The Group's variousdistributions to equity instrument holders (excluding stock dividends) reduce shareholders' equity.
11. Inventory
Inventories of the Company principally include raw materials, stock goods; work in process, self-made semi-finished product, materials consigned to precede, low-value consumption goods, goods in transit, goods inprocess, mould and contract performance costs.Perpetual inventory system is applicable to inventories. For daily calculation, standard price is adopted for rawmaterials, low-value consumption goods and stock goods. Switch-back cost of the current month is adjustedby distribution price difference at the end of the month, the dispatched goods will share the cost differences ofinventory while in settlement the business income; and low-value consumption goods is carried forward atonce when being applied for use and the mould shall be amortized within one year after receipt.Inventory at period-end is valued by the Lower-of-value between the cost and net realizable value.Theprovision for inventory depreciation shall be drawn from the difference between the book cost of a singleinventory item and its net realizable value, and the provision for inventory depreciation shall be recorded intothe current profit and loss.
12. Contract assets
(1) Confirmation methods and standards of contract assets
Contract assets refer to the right of the Company to receive consideration after transferring goods to customers,and this right depends on factors other than the passage of time. If the Company sells two clearlydistinguishable commodities to a customer and has the right to receive payment because one of thecommodities has been delivered, but the payment is also dependent on the delivery of the other commodity,the Company shall take the right to receive payment as a contract asset.
(2) Determination method and accounting treatment method of expected credit loss of contract assetsFor the determination method for expected credit loss of contract assets, please refer to the above-mentioned
(3) Accounting treatment methods for financial instrument impairment. The Company calculates the expectedcredit loss of contract assets on the balance sheet date, if the expected credit loss is greater than the book valueof provision for impairment of contract assets, the Company shall recognize the difference as an impairmentloss, debiting the "asset impairment loss" and crediting the "contract asset impairment provision". On thecontrary, the Company shall recognize the difference as an impairment gain and keep the opposite accountingrecords.
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
If the Company actually incurs credit losses and determines that the relevant contract assets cannot berecovered, for those approved to be written off, debit the "contract asset impairment reserve" and credit the"contracted asset" based on the approved write-off amount. If the written-off amount is greater than theprovision for loss that has been withdrawn, the "asset impairment loss" is debited based on the difference.
13. Contract cost
(1) The method of determining the amount of assets related to the contract cost
The Company’s assets related to contract costs include contract performance cost and contract acquisition cost.The contract performance cost is the cost incurred by the Company for the performance of the contract, thosethat do not fall within the scope of other accounting standards and meet the following conditions at the sametime are recognized as as an asset as the contract performance cost: the cost is directly related to a current orexpected contract, including direct labor, direct materials, manufacturing expenses (or similar expenses), costsclarified to be borne by the customer, and other costs incurred solely due to the contract; this cost increases theCompany's future resources for fulfilling the contract's performance obligations; this cost is expected to berecovered.Contract acquisition cost is the incremental cost incurred by the Company to obtain the contract, those that areexpected to be recovered are recognized as the contract acquisition cost as an asset; if the asset amortizationperiod does not exceed one year, it shall be included in the current profit and loss when it occurs. Incrementalcost refers to the cost (such as sales commission, etc.) that will not incur if the Company doesn’t obtain thecontract. The Company’s expenses (such as travel expenses incurred regardless of whether the contract isobtained) incurred for obtaining the contract other than the incremental costs expected to be recovered areincluded in the current profits and losses when they are incurred, except those are clarified to be borne by thecustomer.
(2) Amortization of assets related to contract costs
The Company’s assets related to contract costs are amortized on the same basis as the recognition of commodityincome related to the asset and included in the current profit and loss.
(3) Impairment of assets related to contract costs
When the Company determines the impairment loss of assets related to the contract cost, it first determines theimpairment loss of other assets related to the contract that are confirmed in accordance with other relevantaccounting standards for business enterprises; then based on the difference between the book value of whichis higher than the remaining consideration that the Company is expected to obtain due to the transfer of thecommodity related to the asset and the estimated cost of transferring the related commodity, the excess shallbe provided for impairment and recognized as an asset impairment loss.If the depreciation factors of the previous period changed later, causing the aforementioned difference to behigher than the book value of the asset, the original provision for asset impairment shall be reversed and
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
included in the current profit and loss, but the book value of the asset after the reversal shall not exceed thebook value of the asset on the reversal date under the assumption that no impairment provision is made.
14.Long-term equity investment
Long-term equity investment of the Company is mainly about investment in subsidiary, investment inassociates and investment in joint-ventures.For long-term equity investments acquired through business combination under common control, the initialinvestment cost shall be the acquirer’s share of the carrying amount of net assets of the acquiree as of thecombination date as reflected in the consolidated financial statement of the ultimate controller. If the carryingamount of net assets of the acquiree as of the combination date is negative, the investment cost of long-termequity investment shall be zero. For long-term equity investment acquired through business combination notunder common control, the initial investment cost shall be the combination cost.
Excluding the long-term equity investment acquired through business combination, there is also a king of long-term equity investment acquired through cash payment, for whichthe actual payment for the purchase shall beinvestment cost; If Long-term equity investments are acquired by issuing equity securities, fair value of issuingequity investment shall be investment cost; for Long-term equity investments which are invested by investors,the agreed price in investment contract or agreement shall be investment cost; and for long-term equityinvestment which is acquired through debt reorganization and non-monetary assets exchange, regulations ofrelevant accounting standards shall be referred to for confirming investment cost.The Company adopts cost method for investment in subsidiaries, makes calculation for investments in joint-ventures and associates by equity method.
When calculated by cost method, long-term equity investment is priced according to its investment cost, andcost of the investment is adjusted when making additional investment or writing off investment; Whencalculated by equity method, current investment gains and losses represent the proportion of the net gains andlosses realized by the invested unit in current year attributable to or undertaken by the investor. When theCompany is believed to enjoy proportion of net gains and losses of invested unit, gains and losses attributableto the Company according to its shareholding ratio is to computer out according to the accounting policy andaccounting period of the Company, on the basis of the fair value of various recognizable assets of the investedunit as at the date of obtaining of the investment, after offset of gains and losses arising from internaltransactions with associates and joint-ventures, and finally to make confirmation after adjustment of net profitof the invested unit. Confirmation on gains and losses from the long-term equity investment in associates andjoint-ventures held by the Company prior to the first execution day, could only stand up with the precedentcondition that debit balance of equity investment straightly amortized according to its original remaining termhas already been deducted, if the aforementioned balance relating to the investment do exist.
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
In case that investor loses joint control or significant influence over investee due to disposal of part equityinterest investment, the remaining equity interest shall be calculated according to Accounting Standards forBusiness Enterprise No.22-Recognition and Measurement of Financial Instrument. Difference between the fairvalue of the remaining equity interest as of the date when loss of joint control or significant influence and thecarrying value is included in current gains and losses. Other comprehensive income recognized in respect ofthe original equity interest investment under equity method should be treated according to the same basis whichthe investee adopts to directly dispose the relevant assets or liabilities when ceasing adoption of equity methodcalculation; and also switches to cost method for calculating the long-term equity investments which entitlesthe Company to have conduct control over the invested units due to its additional investments; and switches toequity method for calculating the long-term equity investments which entitles the Company to conductcommon control or significant influence, while no control over the invested units due to its additionalinvestments, or the long-term equity investments which entitles the Company with no control over the investedunits any longer while with common control or significant influence.
When disposing long-term equity investment, the balance between it carrying value and effective price forobtaining shall be recorded into current investment income. When disposing long-term equity investmentwhich is calculated by equity method, the proportion originally recorded in owners’ equity shall be transferredto current investment income according to relevant ratio, except for that other movements of owners’ equityexcluding net gains and losses of the invested units shall be recorded into owners’ equity.
15. Investment real estate
The investment real estate of the Company includes leased houses and buildings, and is accounted value by itscost. Cost of purchased-in investment real estate consists of payment for purchase, relevant taxes and otherexpenditure which is attributable to the assets directly; while cost of self-built investment real estate is formedwith all necessary expenditures occurred before construction completion of the assets arriving at the estimatedutilization state.
Consequent measurement of investment estate shall be measured by cost method. Depreciation is providedwith average service life method pursuant to the predicted service life and net rate of salvage value. Thepredicted service life and net rate of salvage value and annual depreciation are listed as follows:
| Category | Depreciation term(Year) | Predicted rate of salvage value (%) | Depreciation rate per annual (%) |
| House and buildings | 30-40 years | 4%-5% | 2.375%-3.20% |
When investment real estate turns to be used by holders, it shall switch to fixed assets or intangible assetscommencing from the date of such turning. And when self-used real estate turns to be leased out for rental oradditional capital, the fixed assets or intangible assets shall switch to investment real estate commencing from
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
the date of such turning. In situation of switch, the carrying value before the switch shall be deemed as thecredit value after the switch.
When investment real estate is disposed, or out of utilization forever and no economic benefit would bepredicted to obtain through the disposal, the Company shall terminate recognition of such investment realestate. The amount of income from disposal, transfer, discarding as scrap or damage of investment real estateafter deducting the asset’ s carrying value and relevant taxation shall be written into current gains and losses.
16.Fixed assets
Fixed assets of the Company are tangible assets that are also held for the production of goods, provision ofservices, rental or management of operations, have a useful life of more than one year and have a unit value ofmore than 2,000 yuan.
Their credit value is determined on the basis of the cost taken for obtaining them. Of which, cost of purchased-in fixed assets include bidding price and import duty and relevant taxes, and other expenditure which occursbefore the fixed assets arrive at the state of predicted utilization and which could be directly attributable to theassets; while cost of self-built fixed asset is formed with all necessary expenditures occurred beforeconstruction completion of the assets arriving at the estimated utilization state; credit value of the fixed assetsinjected by investors is determined based on the agreed value of investment contracts or agreements, while asfor the agreed value of investment contracts or agreements which is not fair, it shall take its fair value as creditvalue; and for fixed assets which are leased in through finance leasing, credit value is the lower of fair valueof leased assets and present value of minimized leasing payment as at the commencing date of leasing.
Consequent expenditure related to fixed assets consists of expenditures for repair and update reform. For thosemeeting requirements for recognization of fixed assets, they would be accounted as fixed asset cost; and forthe part which is replaced, recognization of its carrying value shall cease; for those not meeting requirementsfor recognization of fixed assets, they shall be accounted in current gains and losses as long as they occur.When fixed asset is disposed, or no economic benefit would be predicted to obtain through utilization ordisposal of the asset, the Company shall terminate recognization of such fixed asset. The amount of incomefrom disposal, transfer, discarding as scrap or damage of fixed asset after deducting the asset’ s carrying valueand relevant taxation shall be written into current gains and losses.
The Company withdraws depreciation for all fixed assets except for those which have been fully depreciatedwhile continuing to use. It adopts average service life method for withdrawing depreciation which is treatedrespectively as cost or current expense of relevant assets according to purpose of use. The depreciation term,predicted rate of salvage value and depreciation rate applied to fixed assets of the Company are as follows:
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
| No. | Category | Depreciation term | Predicted rate of salvage value | Depreciation rate per year |
| 1 | House and buildings | 30-40 years | 4%-5% | 2.375%-3.20% |
| 2 | Machinery equipment | 10-14 years | 4%-5% | 6.786%-9.60% |
| 3 | Transport equipment | 5-12 years | 4%-5% | 7.92%-19.20% |
| 4 | Other equipment | 8-12 years | 4%-5% | 7.92%-12.00% |
End of each year, the Company makes re-examination on predicted service life, predicted rate of salvage valueand depreciation method at each year-end. Any change will be treated as accounting estimation change.
17. Construction in progress
On the day when the construction in progress reaches the expected usable state, it will be carried forward tofixed assets according to the estimated value based on the construction budget, cost or actual construction cost,and depreciation will be accrued from the next month, and the difference in the original value of fixed assetsshall be adjusted after the completion of the final accounting procedures.
18. Borrowing expense
For the incurred borrowing expense that can be directly attributable to fixed assets, investment real estate, andinventory which require more than one year of purchase, construction or production activities to reach theintended usable or saleable state, the capitalization begins when the asset expenditure has occurred, theborrowing expense have occurred, and the acquisition, construction or production activities necessary to makethe asset reach the intended usable or saleable state have begun; when the acquisition, construction orproduction of assets that meet the capitalization conditions reaches the intended usable or saleable state, stopthe capitalization, the borrowing expense incurred thereafter are included in the current profit and loss. If anasset that meets the capitalization conditions is abnormally interrupted during the acquisition, construction orproduction process, and the interruption lasts for more than 3 months, the capitalization of borrowing expenseshall be suspended until the acquisition, construction or production activities of the asset restart.
Capitalization shall be exercised for interest expense actually occurred from special borrowings in currentperiod after deduction of the interest income arising from unutilized borrowing capital which is saved in banksor deduction of investment income obtained from temporary investment; For recognization of capitalizedamount of common borrowing, it equals to the weighted average of the assets whose accumulated expense orcapital disburse is more than common borrowing times capitalization rate of occupied common borrowing.Capitalization rate is determined according to weighted average interest rate of common borrowing.
19. Right-of-use assets
Upon becoming a lessee under a lease contract, the Company is entitled to receive substantially all of theeconomic benefits, arising from the use of the identified assets during the period of use and is entitled torecognized the right-of-use assets at the sum of the present value of the lease liability, prepaid rent and initial
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
direct costs, and to recognized the depreciation and interest expenses respectively, when the use of theidentified assets dominates during that period of use.
When the Company becomes the lessee of a lease contract, for short-erm leases of less than one year withouta purchase option and leases with a value of less than 40000 yuan (excluding sublease or expected subleaseassets), the Company elects to follow simplified treatment and record the related assets at cost or currentgain/loss on a straight-line basis over the lease period.
20. Intangible assets
The Company’s intangible assets include land use rights, trademark rights and non-proprietary technology,which are measured at actual cost at the time of acquisition, of which, acquired intangible assets are stated atactual cost based on the price actually paid and related other expenditure; the actual cost of an intangible assetinvested by an investor is determined at the value agreed in the investment contract or agreement, except wherethe agreed value in the contract or agreement is not fair, in which case the actual cost is determined at fairvalue.The land use rights are amortized equally over the period from the commencement date of the grant; theremaining intangible assets are amortized equally over the shortest of the estimated useful life, the contractualbeneficial life and the effective life as prescribed by law. Amortization is charged to the cost of the relevantasset and to current profit or loss in accordance with the object of its benefit. The estimated useful life andamortization method for intangible assets with finite useful lives are reviewed at the end of each year and anychanges are treated as changes in accounting estimates.
21. Research and development(R&D)
As for expenditure for research and development, the Company classifies it into expenditure on research phaseand development phase, based on nature of the expenditure and that whether the final intangible assets formedby research & development is of great uncertainty. Expenditure arising during research should be recorded incurrent gains and losses upon occurrence; expenditure arising during development is confirmed as intangibleassets when satisfying the following conditions:
-Completions of the intangible assets make it available for application or sell in technology;-Equipped with plan to complete the intangible asset and apply or sell it;There is market for products produced with this intangible asset or the intangible asset itself;-Have sufficient technology, financial resource and other resources to support development of the intangibleassets, and have ability to apply or sell the assets;-Expenditure attributable to development of the intangible assets could be reliable measured.Expenditure arising during development not satisfying the above conditions shall be recorded in current gainsand losses upon occurrence. Development expenditure which had been recorded in gains and losses in previous
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
period would not be recognized as assets in later period. Expenditure arising during development phase whichhas been starting capitalization is listed in balance sheet as development expenditure, and transferred tointangible assets since the project reaches at predicted utilization state.
22. Impairment of long-term assets
As at each balance sheet date, the Company has inspection onfixed assets, construction in process andintangible assets with limited service life. When the following indications appear, assets may be impaired, andthe Company would have impairment test. As for goodwill and intangible assets which have uncertain servicelife, no matter there is impairment or not, impairment test shall be conducted at the end of every year. If it ishard to make test on recoverable amount of single asset, test is expected to make on the basis of the assetsgroup or assets group portfolio where such asset belongs to.After impairment test, if the carrying value exceeds the recoverable amount of the asset, the balance isrecognized as impairment loss. As long as impairment loss of the aforementioned assets is recognized, itcouldn’t be switched back in later accounting periods. Recoverable amount of assets refers to the higher of fairvalue of assets net disposal expense and present value of predicted cash flow of the asset.Indications for impairment are as follows:
(1) Market value of asset drops a lot in current period, the drop scope is obviously greater than the predicteddrop due to move-on of times or normal utilization;
(2) Economy, technology or law environment where enterprise operates or market where asset is located willhave significant change in current or recent periods, which brings negative influence to enterprise;
(3) Market interest rate or returning rate of other market investments have risen in current period, which bringsinfluence in calculating discount rate of present value of predicted future cash flow of assets, which leads to agreat drop in recoverable amount of such assets;
(4) Evidence proving that asset is obsolete and out of time or its entity has been damaged;
(5) Asset has been or will be keep aside, terminating utilization or disposed advance;
(6) Internal report of enterprise shows that economic performance of asset has been or will be lower thanprediction, such as that net cash flow created by asset or operation profit (or loss) realized by asset is greatlylower (or higher) than the predicted amount;
(7) Other indications showing possible impairment of assets
23. Contract liability
Contract liabilities reflect the Company's obligation to transfer goods to customers for consideration receivedor receivable from customers. Before the Company transfers the goods to the customer, if the customer haspaid the contract consideration or the Company has obtained the right to unconditionally receive the contractconsideration, the contract liability is recognized based on the received or receivable amount at the earlier timepoint of the actual payment by the customer and the payment due.
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
24. Goodwill
Goodwill represents balance between equity investment cost or business combination cost under no commoncontrol exceeding the attributable part or fair value of recognizable net assets of party invested or purchased(obtained through business combination) as of acquisition day or purchase day.
Goodwill relating to subsidiaries is separately listed in consolidated financial statement. And goodwill relatingto associates and joint-ventures is included in carrying value of long-term equity investment.
25.Long-term deferred expenses
The company's long-term deferred expenses refer to the expenses that have been paid, but should be borne bythe current period and future periods with an amortization period of more than one year (excluding one year),and these expenses are amortized evenly during the benefit period. If the long-term deferred expense itemcannot benefit the future accounting period, all the amortized value of the item that has not been amortizedwill be transferred into the current profit and loss.
26. Staff remuneration
Employee benefits mainly include all kinds of remuneration incurred in exchange for services rendered byemployees or compensation to the termination of employment relationship such as short-term wages, post-employment benefits, compensation for the termination of employment relationship and other long-termemployee welfare.
Short-term remuneration includes: staff salary, bonus, allowances and subsidies, staff benefits, socialinsurances like medical insurance, work-related injury insurance and maternity insurance, housing fund, laborunion funds and staff education funds, short-term paid absence of duty, short-term profit sharing scheme, andnon-monetary benefits as well as other short-term remuneration. During the accounting period when staffprovides services, the short-term remuneration actually occurred is recognized as liabilities and shall beincluded in current gains and losses or related asset costs according to the beneficial items.
Retirement benefits mainly consist of basic pension insurance, unemployment insurance and early-retirementbenefits, etc. retirement benefit scheme represents the agreement reached by the Company and its employeesin respect of retirement benefits, or the rules or regulations established by the Company for providingretirement benefits to employees. In particular, defined contribution plan means a retirement benefit plan,pursuant to which, the Company makes fixed contribution to independent fund, upon which, and it is notobliged to make further payment. Defined benefit plan refers to retirement benefit scheme other than definedcontribution plan.
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
The early retirement policy for staff and workers of the Company is the compensation for encouraging staffand workers to accept the reduction voluntarily. The employees make applications voluntarily, the two partiessign the compensation agreement after approved by the Company and calculate the compensation amountaccording to the compensation standard passed by the staff representative conference, and the Companyconfirms it as dismiss welfare and reckons it in current profits and losses. As the Company promises to adjustthe treatment for early retiring staff and workers with the increase of social basic cost of living allowances, thediscount elements will not be considered for calculating the dismiss welfare.
27.Lease liability
Upon becoming a lessee under a lease contract, the Company recognizes a lease liability for the leased-in assetat the present value of the unpaid lease payments, net of lease incentives (except for short-term leases andleases of low-value assets for which simplified treatment is elected), when it is entitled to receive substantiallyall of the economic benefits arising from the use of the identified asset during the period of use and is entitledto dominate the use of the identified asset during that period of use.
28.Accrual liability
If the business in connection with such contingencies as a security involving a foreign party, commercialacceptance bill discount, pending litigation or arbitration, product quality assurance, etc. meets all of thefollowing conditions, the Company will confirm the aforesaid as liabilities: the obligation is an existingobligation of the Company; performance of the obligation is likely to cause economic benefits to flow out ofthe enterprise; the amount of the obligation is reliably measurable.
29. Special reserve
The work safety expense extracted according to the regulations will be included in the cost of relatedproducts or the current profit and loss, and also included in the special reserve; When used, it will be treatedseparately according to whether fixed assets are formed or not: if it is an expense expenditure, the specialreserve will be directly offset; If the fixed assets are formed, the expenses incurred shall be collected, and thefixed assets shall be confirmed when the predetermined usable state is reached, and at the same time, theequivalent special reserve shall be offset and the equivalent accumulated depreciation shall be confirmed.
30. Revenue
The Company’s sales revenue is mainly comprised of revenue from sale of goods, labor providing incomeand revenue from assignment of asset use rights.The Company has fulfilled the performance obligations in the contract, that is, revenue is recognized when thecustomer obtains control of the relevant goods or services.
If the contract contains two or more performance obligations, the Company will allocate the transaction priceto each individual performance obligation according to the relative proportion of the stand-alone selling price
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
of the goods or services promised by each individual performance obligation on the date of the contract. Therevenue is measured according to the transaction price of each individual performance obligation.
The transaction price is the amount of consideration that the Company expects to be entitled to receive due tothe transfer of goods or services to customers, excluding payments on behalf of third parties. The transactionprice confirmed by the Company does not exceed the amount at which the cumulatively recognized revenuewill most likely not to undergo a significant switch back when the relevant uncertainty is eliminated. Themoney expected to be returned to the customer will be regarded as a return liability and not included in thetransaction price. If there is a significant financing component in the contract, the Company shall determinethe transaction price based on the amount payable on the assumption that the customer pays in cash whenobtaining the control of the goods or services. The difference between the transaction price and the contractconsideration shall be amortized by the effective interest method during the contract period. On the startingdate of the contract, if the Company expects that the interval between the customer's acquisition of control ofthe goods or services and the customer's payment of the price doesn’t exceed one year, the significant financingcomponents in the contract shall be ruled out.
When meeting one of the following conditions, the Company is to perform its performance obligations withina certain period of time, otherwise, it is to perform its performance obligations at a certain point in time:
1) The customer obtains and consumes the economic benefits brought by the Company's performance at thesame time as the Company's performance;
2) Customers can control the products under construction during the performance of the Company;
3) The goods produced by the Company during the performance of the contract have irreplaceable uses, andthe Company has the right to collect payment for the accumulated performance part of the contract during theentire contract period.
For performance obligations performed within a certain period of time, the Company recognizes revenue inaccordance with the performance progress during that period and determine the progress of performance inaccordance with the output method. When the performance progress cannot be reasonably determined, if thecost incurred by the Company is expected to be compensated, the revenue shall be recognized according to theamount of the cost incurred until the performance progress can be reasonably determined.
For performance obligations performed at a certain point in time, the Company recognizes revenue at the pointwhen the customer obtains control of the relevant goods or services. When judging whether a customer hasobtained control of goods or services, the Company will consider the following signs:
1) The Company has the current right to collect payment for the goods or services;
2) The Company has transferred the goods in kind to the customer;
3) The Company has physically transferred the goods to the customer;
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
4) The Company has transferred the principal risks and rewards of ownership of the goods to the customer;
5) The customer has accepted the goods or services, etc.
The Company’s right to receive consideration for goods or services that have been transferred to customers arepresented as contractual assets, which are impaired on the basis of expected credit losses. The Company’sunconditional right to receive consideration from customers is shown as a account receivable. The obligationto transfer goods or services to customers for which the Company has received consideration receivable fromthem is shown as a contractual liability.
31. Government subsidy
Government subsidy of the Company include project grants, financial subsidies and job stabilizationsubsidies. Of which, asset-related government subsidy are government subsidy acquired by the Company forthe acquisition or other formation of long-term assets; government subsidy related to revenue are governmentsubsidy other than those related to assets. If the government document does not clearly specify the subsidyobject, the Company will judge according to the above-mentioned distinguishing principle. If it is difficult todistinguish, it will be overall classified as a government subsidy related to income.If government subsidies are monetary assets, they are measured according to the amount actually received. Forsubsidies paid on the basis of a fixed quota standard, when there is conclusive evidence at the end of the yearthat it can meet the relevant conditions stipulated by the financial support policy and is expected to receivefinancial support funds, they are measured according to the amount receivable. If the government subsidy is anon-monetary asset, it shall be measured at its fair value, when the fair value cannot be obtained reliably, itshall be measured at its nominal amount (1 yuan).
Government subsidies related to assets are recognized as deferred income. Asset-related government subsidiesthat are recognized as deferred income are included in the current profit and loss in installments according tothe average life method during the useful life of the relevant assets.
If the relevant asset is sold, transferred, scrapped or damaged before the end of its useful life, the undistributeddeferred income balance shall be transferred to the current profit and loss of asset disposal.
32. Deferred Income Tax Assets and Deferred Income Tax Liabilities
A deferred tax asset and deferred tax liability shall be determined by a difference (temporary difference)between the carrying amount of an asset or liability and its tax base. The deferred tax asset shall be recognizedfor the carry forward of unused deductible losses that it is probable that future taxable profits will be availableagainst which the deductible losses can be utilized. For temporary difference arising from initial recognitionof goodwill, no corresponding deferred income tax liabilities will be recognized. For temporary differencearising from initial recognition of assets and liabilities occurred in the transaction related to non-businesscombination which neither affect accounting profit nor taxable income (or deductible losses), no corresponding
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
deferred income tax assets and deferred income tax liabilities will be recognized. As of the balance sheet date,deferred income tax assets and deferred income tax liabilities are measured at the effective tax rate applicableto the period when recovery of assets or settlement of liabilities occur.
The Company recognizes deferred income tax assets to the extent of future taxable income tax which is likelyto be obtained to offset deductible temporary difference, deductible losses and tax credits.
33.Lease
When the Company becomes the lessee of the lease contract, has the right to obtain almost all the economicbenefits arising from the use of the identified assets during the period of use, and has the right to lead the useof the identified assets during the period of use, the present value of unpaid lease payments of the lease assetsafter deducting lease incentives (except for short-term leases and leases of low-value assets for whichsimplified treatment is selected) is recognized as a lease liability, and a right-of-use asset is recognized basedon the sum of the present value of the lease liability, prepaid rent, and initial direct costs, and depreciation andinterest expenses are recognized separately.When the Company becomes the lessee of a lease contract, for short-erm leases of less than one year withouta purchase option and leases with a value of less than 40,000 yuan (excluding sublease or expected subleaseassets), the Company elects to follow simplified treatment and record the related assets at cost or currentgain/loss on a straight-line basis over the lease period.When the Company becomes the lessor of a lease contract, it classifies the lease into an operating lease and afinance lease at the lease commencement date. A finance lease is a lease that transfers substantially all the risksand rewards associated with the ownership of an asset. Operating leases are leases other than finance leases.Rentals under operating leases are recognized as income on a straight-line basis over the lease term. Financeleases are recorded at the net lease investment value of the finance lease receivable, which is the sum of theunguaranteed residual value and the present value of the lease receipts not yet received as of thecommencement date of the lease term.There are both leasing and non-leasing businesses in the contract and can be split, and the leasing business isfinancially accounted according to the lease standards. There are both leasing and non-leasing businesses inthe contract and cannot be split, and the entire contract is included in the lease business for financial accountingaccording to the lease standards.The lease change needs to be judged whether it can be recognized as a single leasing business, and it needs tobe recognized separately if it meets the recognition conditions of a single lease; if it does not meet therecognition of a single leasing business, or there is a major event or change within the controllable range of thelessee, re-evaluate and measure the present value of lease liabilities, and adjust the book value of the right-of-use asset accordingly. If the book value of the right-of-use asset has been reduced to zero, but the lease liabilitystill needs to be further reduced, the lessee shall include the remaining amount in the corresponding expenses
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
for the current period.
When the Company becomes the lessor of a lease contract, the lease is divided into operating lease and financelease on the start date of lease. A finance lease is a lease that transfers substantially all the risks and rewardsassociated with ownership of an asset. An operating lease refers to a lease other than finance leases. The rentof an operating lease is recognized as income on a straight-line basis during the lease term. For an finance lease,the net investment in the lease is regarded as the entry value of the finance lease receivables, and the netinvestment in the lease is the sum of the unguaranteed residual value and the present value of the lease receiptsthat have not been received on the start date of the lease term.
34. Held-for-sale
(1)The Company classifies non-current assets or disposal groups that meet all of the following conditions asheld-for-sale: 1) according to the practice of selling this type of assets or disposal groups in a similar transaction,the non-current assets or disposal group can be sold immediately at its current condition; 2) The sale is likelyto occur, that is, the Company has made resolution on the selling plan and obtained definite purchasecommitment, the selling is estimated to be completed within one year. Those assets whose disposal is subjectto approval from relevant authority or supervisory department under relevant requirements are subject to thatapproval. Prior to the preliminary classification of non-current assets or disposal group as the category of held-for-sale, the Company measures the carrying value of the respective assets and liabilities within the non-currentassets or disposal group under relevant accounting standards. For non-current asset or disposal group held forsale, for which it is found that the carrying value is higher than its fair value less disposal expense during theinitial measurement or re-measurement on the balance sheet date, the carrying value shall be deducted to thenet amount of fair value less disposal expense, and the reduced amount shall be recognized as impairment lossin profit or loss for the period, and provision of impairment of assets held for sale shall be provided foraccordingly.
(2)The non-current assets or disposal group that the Company has acquired specially for resale are classifiedas held for sale on the acquisition date when they meet the condition that “the selling is estimated to becompleted within one year” on the acquisition date, and are likely to satisfy other conditions of being classifiedas the type of held for sale in a short-term (usually being 3 months). Non-current assets or disposal groupclassified as held for sale are measured at the lower of their initial measurement amount and the net amountafter their fair value less the selling expenses based on the assumption that such non-current assets or disposalgroup are not classified as held for sale at the time of initial measurement. Except for the non-current assets ordisposal group acquired in a business combination, the difference arising from considering the net amount ofsuch non-current assets or disposal group after their fair value less the selling expenses as the initialmeasurement amount is recorded in the current profit or loss.
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
(3)In case of loss of control over the subsidiaries due to the sales of investment in subsidiaries, no matterwhether the Company retains part of the equity investment after selling investment in subsidiaries, theinvestment in subsidiaries shall be classified as held for sale on an aggregate basis in the separate financialstatements of the parent company when the investment in subsidiaries proposed to be sold satisfies theconditions for being classified as held for sale; and all the assets and liabilities of the subsidiary shall beclassified as held for sale in the consolidated financial statements.
(4)If the net amount of fair value of non-current assets held for sale less sales expense on subsequent balancesheet date increases, the amount previously reduced for accounting shall be recovered and reverted from theimpairment loss recognized after the asset is classified under the category of held for sale, with the amountreverted recorded in profit or loss for the period. Impairment loss recognized before the asset is classified underthe category of held for sale shall not be reverted.
(5)For the amount of impairment loss on assets, the carrying value of disposal group’s goodwill shall be offsetagainst first, and then offset against the book value of non-current assets according to the proportion of bookvalue of non-current assets.If the net amount of fair value of the disposal group held for sale on the subsequent balance sheet date lesssales expenses increases, the amount reduced for accounting in previous periods shall be restored, and shall bereverted in the impairment loss recognized in respect of the non-current assets which are applicable to relevantmeasurement provisions after classification into the category of held for sale, with the reverted amount chargedin profit or loss for the current period. The written-off carrying value of goodwill and impairment loss of non-current assets which is recognized prior to classification into the category of held for sale shall not be reverted.The subsequent reversed amount in respect of the impairment loss on assets recognized in the disposal groupheld for sale will increase the book value in proportion of the book value of each non-current asset (other thangoodwill) in the disposal group.
(6) The non-current assets in the non-current assets or disposal group held for sale is not depreciated oramortized, and the debt interests and other fees in the disposal group held for sale continue to be recognized.
(7)If the non-current assets or disposal group are no longer classified as held for sale since they no longer meetthe condition of being classified as held for sale or the non-current assets are removed from the disposal groupheld for sale, they will be measured at the lower of the following: 1) the amount after their book value beforethey are classified as held for sale is adjusted based on the depreciation, amortization or impairment that shouldhave been recognized given they are not classified as held for sale; 2) the recoverable amount.
(8) The unrecognized profits or loss will be recorded in the current profits or loss when derecognizing the non-current assets or disposal group held for sale.
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
35. Discontinued operation
A discontinued operation is a separately identified component of the Group that either has been disposed of oris classified as held for sale, and satisfies one of the following conditions: (1) represents a separate major lineof business or geographical area of operations; (2) is part of a single co-ordinate plan to dispose of a separatemajor line of business or geographical area of operations; and (3) is a subsidiary acquired exclusively with aview to resale.
36. Income tax accounting
The Company accounted the income tax in a method of debit in balance sheet. The income tax expenses includeincome tax in the current year and deferred income tax. The income tax associated with the events andtransactions directly included in the owners’ equity shall be included in the owners’ equity; and the deferredincome tax derived from business combination shall be included in the carrying amount of goodwill, exceptfor that above, the income tax expense shall be included in the profit or loss in the current period.
The income tax expense in the current year refers to the tax payable, which is calculated according tothe taxlaws on the events and transactions incurred in the current period. The deferred income tax refersto thedifference between the carrying amount and the deferred tax assets and deferred tax liabilities at CurrentYear-end recognized in the method of debit in the balance sheet.
37. Segment information
Business segment was the major reporting form of the Company, which divided into four parts: air-conditioning, refrigerator & freezer& washing machine,small home appliance and others. The transfer priceamong the segments will recognize based on the market price, common costs will allocated by incomeproportion between segments except for the parts that without reasonable allocation.
38. Explanation on significant accounting estimation
The management of the Company needs to apply estimation and assumption when preparing financialstatement which will affect the application of accounting policy and amounts of assets, liabilities, incomeand expense. The actual condition may differ from the estimation. Constant evaluation is conducted by themanagement in respect of the key assumption involved in the estimation and judgment of uncertainties. Effectresulting from change of accounting estimation is recognized in the period the change occurs and futureperiods.
The following accounting estimation and key assumption may result in material adjustment to the book valueof assets and liabilities in future period.
(1) Inventory impairment provision
The Company's provision for impairment of inventories on the balance sheet date is the part of the net
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
realizable value lower than the cost of inventories. The net realizable value of the inventory of goods that aredirectly used for sale, such as the goods in stock, the goods sent out, and the materials for sale, and the low-consumption goods, shall be determined by the amount of the estimated selling price of the inventory minusthe estimated selling expenses and relevant taxes. The net realizable value of the material inventory held forproduction is determined by the amount of the estimated selling price of the finished product produced minusthe estimated cost to be incurred at the time of completion, the estimated selling expenses and relevant taxes.
(2) Accounting estimation on long-term assets impairment provision
The Company makes impairment test on fixed assets such as buildings, machine and equipment which haveimpairment indication and long-term assets such as goodwill as at the balance sheet date. The recoverableamount of relevant assets and assets group shall be the present value of the projected future cash flow whichshall be calculated with accounting estimation.
If the management amends the gross profit margin and discount rate adopted in calculation of future cash flowof assets and assets group and the amended gross profit margin is lower than the currently adopted one or theamended discount rate is higher than the currently adopted one, the Company needs to increase provision ofimpairment provision. If the actual gross profit margin is higher (or the discount rate is lower) than theestimation of management, the Company can not transfer back the long term assets impairment provisionprovided already.
(3) Accounting estimation on realization of deferred income tax assets
Estimation on deferred income tax assets needs estimation on the taxable income and applicable tax rate foreach future year. Realization of deferred income tax assets depends on whether a company is able to obtainsufficient taxable income in future. Change of future tax rate and switch back of temporary difference couldaffect the balance of income tax expense (gains) and deferred income tax. Change of the aforesaid estimationmay result in material adjustment to deferred income tax.
(4) Usable term and residual value rate of fixed assets and intangible assets
The Company, at least at the end of each accounting year, reviews the projected usable life and residual valuerate of fixed assets and intangible assets. The projected usable life and residual value rate are determined bythe management based on the historical experiences of similar assets by reference to the estimation generallyused by the same industry with consideration on projected technical upgrade. If material change occurs toprevious estimation, the Company shall accordingly adjust the depreciation expenses and amortizationexpenses for future period.
(5) Projected liabilities arising from product quality guarantee
The Company commits to repair the major spare parts of refrigerators sold through go-to-countrysidepromotion activity for free for ten years. As to the maintenance expenses that may be increased arising fromsuch commitment, the Company has provided projected liabilities.
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
Taking into account the various uncertainties during the ten years, the Company considers no discount factorof such projected liabilities. Instead, the Company reviews the parameters (probility, proportion, maintenanceexpense per single set) based on the actual occurrence of maintenance expenses as of each balance sheet date.If obvious change is found, the Company will adjust the projected liabilities according to the latest parametersso as to reflect the best estimation.
39. Other comprehensive income
Other comprehensive income represents various gains and losses not recognized in current gains and lossesaccording to other accounting rules.Other comprehensive income items shall be reported in the following two classes under other relevantaccounting rules:
(1)Other comprehensive income items that can not be reclassified into gains and losses in future accountingperiods, mainly including changes arising from re-measurement of net liabilities or net assets under definedbenefit plan and interest in investee’s other comprehensive income which are measured under equity methodand which can not be reclassified into gains and losses in future accounting periods;
(2) Other comprehensive income items that will be reclassified into gains and losses in future accountingperiods upon satisfaction of required conditions, mainly includes the share of other comprehensive income thatis reclassified into profit and loss when the investee’s subsequent accounting periods are accounted for inaccordance with the equity method and meet the specified conditions, the fair value changes occurred by thedebt investment that is measured at fair value and whose changes are included in other comprehensive income,the difference between the original book value included in other comprehensive income and the fair valuewhen a financial asset measured at amortized cost is reclassified as a financial asset measured at fair value andits changes are included in other comprehensive income, the loss provisions for financial assets measured atfair value and whose changes are included in other comprehensive income, the gains or losses generated fromcash flow hedging instruments are part of effective hedging, and the differences in conversion of foreigncurrency financial statements.
40. Change of significant accounting policies and accounting estimates
(1) Change of significant accounting policy
N/A
(2) Change of significant accounting estimates: N/A
V. Taxation
1. Major taxes and tax rates
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
| Tax (expenses) | Tax (expenses) base | Tax (expenses) rate |
| VAT | Income from sales of goods and from processing | 13%, 9%, 6%, 5%, 3% |
| Urban maintenance and construction tax | Turnover tax | 5% or 7% |
| Education surcharge | Turnover tax | 3% |
| Local education surcharge | Turnover tax | 2% |
| Corporate income tax | Taxable income | 15%,20%,25%,22%,29%、30% |
| House Property Tax | Original Book value of house property×(1-30%)or annual rent income | 1.2% or12% |
| Land use tax | Actual land area used | 1 yuan/M2 to 15 yuan/M2 |
Description of taxpayers with different corporate income tax rates:
| Name | Income tax rate |
| Changhong Meiling Co., Ltd. | 15% |
| Zhongke Meiling Cryogenic Technology Co., Ltd. | 15% |
| Zhongshan Changhong Electric Co., Ltd. | 15% |
| Sichuan Hongmei Intelligent Technology Co., Ltd. | 20% |
| Mianyang Meiling Refrigeration Co., Ltd. | 15% |
| Changhong Meiling Ridian Technology Co., Ltd. | 15% |
| Ground Energy Heat Pump Tech. (Zhongshan) Co., Ltd. | 15% |
| Hefei Meiling Nonferrous Metal Products Co., Ltd. | 15% |
| Jiangxi Meiling Electric Appliance Co., Ltd. | 15% |
| Sichuan Changhong Air-conditioner Co., Ltd. | 15% |
| Hebei Hongmao Daily Appliance Technology Co., Ltd. | 15% |
| Anhui Tuoxing Technology Co., Ltd. | 20% |
| Guangzhou Changhong Trading Co., Ltd. | 20% |
| Anhui Ling'an Medical Equipment Co., Ltd | 20% |
| Hefei Meiling Wulian Technology Co., Ltd | 15% |
| Hefei Changhong Meiling Life appliance Co., Ltd. | 15% |
| CH-Meiling International (Philippines) Inc. | 30% |
| ChanghongRuba Trading Company (Private) Limited | 29% |
| CHANGHONG MEILING ELECTRIC INDONESIA,PT | 22% |
2. Preferential tax
(1) On August 17, 2020, the company obtained the high-tech enterprise certificate numbered GR202034000222approved by the Anhui Provincial Department of Science and Technology, Anhui Provincial Department ofFinance, and Anhui Provincial Taxation Bureau of the State Administration of Taxation, and enjoys 15% ratefor the income tax for State Hi-Tech Enterprise for three years term.
(2) On August 17, 2020, the subsidiary Zhongke Meiling Cryogenic Technology Co., Ltd. obtained the high-
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
tech enterprise certificate numbered GR202034000072 approved by the Anhui Provincial Department ofScience and Technology, Anhui Provincial Department of Finance, and Anhui Provincial Taxation Bureau ofthe State Administration of Taxation, and enjoys 15% rate for the income tax for State Hi-Tech Enterprise forthree years term.
(3) On December 9, 2020, the subsidiary Zhongshan Changhong Electric Co., Ltd., was included in the “Noticeon Publicizing the List of the Second Batch of High-tech Enterprises to be Recognized in Guangdong Provincein 2020'' published by the Office of the National High-tech Enterprise Certification Management LeadingGroup, and continues to enjoy 15% rate for the income tax for State Hi-Tech Enterprise for three years term.
(4) Subsidiary Mianyang Meiling Refrigeration Co., Ltd., belongs to the encouraged industry in the IndustrialStructure Adjustment Guidance Catalog and enjoys the preferential taxation policy of corporate income tax forthe Western Development, and the corporate income tax is levied at a reduced tax rate of 15%, valid untilDecember 31, 2030.
(5) The subsidiary Guangdong Changhong Meiling Ridian Technology Co., Ltd. has passed the qualificationof high-tech enterprise certification on 22 December 2022, and enjoys 15% rate for the income tax for StateHi-Tech Enterprise for three years term.
(6) The subsidiary Hong Yuan Ground Energy Heat Pump Tech. (Zhongshan) Co., Ltd. has passed thequalification of high-tech enterprise certification on 22 December 2022, and enjoys 15% rate for the incometax for State Hi-Tech Enterprise for three years term.
(7) The subsidiary Hefei Meiling Nonferrous Metal Products Co., Ltd. has passed the qualification of high-tech enterprise certification on 18 September 2021, and enjoys 15% rate for the income tax for State Hi-TechEnterprise for three years term.
(8) The subsidiary Jiangxi Meiling Electric Appliance Co., Ltd. has passed the qualification of high-techenterprise certification on 4 November 2022, and enjoys 15% rate for the income tax for State Hi-TechEnterprise for three years term.
(9) The subsidiary Sichuan Changhong Air-conditioner Co., Ltd., belongs to the encouraged industry in theIndustrial Structure Adjustment Guidance Catalog and enjoys the preferential taxation policy of corporateincome tax for the Western Development, and the corporate income tax is levied at a reduced tax rate of 15%,valid until December 31, 2030.
(10) The subsidiary Hebei Hongmao Daily Appliance Technology Co., Ltd. has passed the qualification ofhigh-tech enterprise certification on 18 September 2021, and enjoys 15% income tax rate for national payrolltechnology enterprise for three years term.
(11) The subsidiary Anhui Tuoxing Technology Co., Ltd., Anhui Ling’an Medical Equipment Co., Ltd., HefeiMeiling Wulian Technology Co., Ltd., Guangzhou Changhong Trading Co., Ltd. are in compliance with therelevant standards for small and medium-sized enterprises with meager profits in the “Notice on matters relatedto the implementation of preferential income tax policy to support the development of small & medium-sizeenterprise and individual entrepreneurs” (Guoshui [2021] No. 8) and “Notice on Further Implementation ofPreferential Income Tax Policies for Small & Micro Enterprises (No.: 13 of 2022)” of the Ministry of Financeand the State Administration of Taxation, and temporarily implements below policies: the part of annual taxable
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
income that does not exceed one million yuan is included in taxable income by 12.5% after a reduction, andcorporate income tax is paid at a tax rate of 20%, valid until December 31, 2022; while the part of annualtaxable income exceeds one million yuan but not exceeding three million yuan is included in taxable incomeby 25% after a reduction, and corporate income tax is paid at a tax rate of 20%, which is valid until December31, 2024.
(12) The subsidiary Hebei Meiling Wulian Technology Co., Ltd. has passed the qualification of high-techenterprise certification on 18 September 2021, and enjoys 15% income tax rate for national payroll technologyeenterprises for three years term.
(13) The subsidiary Hebei Changhong Meiling Life Appliance Co., Ltd. has passed the qualification of high-tech enterprise certification on 18 November 2022, and enjoys 15% income tax rate for national payrolltechnology eenterprise for three years term.VI. Notes to the major items in the consolidated financial statementsWith respect to the financial statements figures disclosed below, unless otherwise specified, “year-beginning”refers to Jan. 1, 2022; “year-end” refers to Dec. 31, 2022; “Current Year” refers to Jan. 1 to Dec. 31, 2022; “thelast year” refers to Jan. 1 to Dec. 31, 2021; the currency is RMB.
1. Monetary fund
| Item | Balance at year-end | Balance at year-begin |
| Cash | 21,243.42 | 28,447.21 |
| Bank deposit | 6,119,260,150.47 | 5,121,110,089.59 |
| Other Monetary fund | 712,717,808.79 | 805,215,921.34 |
| Interest receivable on deposit | 7,422,576.45 | 12,468,938.07 |
| Total | 6,839,421,779.13 | 5,938,823,396.21 |
| Including: total amount deposited in overseas | 9,295,065.32 | 8,156,154.33 |
| Total use of restricted funds | 718,777,132.92 | 86,159,526.57 |
Other monetary fund:
| Item | Balance at year-end | Balance at year-begin |
| Cash deposit | 712,177,743.52 | 776,959,862.25 |
| B share repurchase | 20,526,874.41 | |
| Frozen money | 6,603,675.00 | |
| Co-managed account funds | 506,171.40 | 504,702.66 |
| Taobao account | 74,572.96 | |
| Union Pay online | 33,893.87 | 546,234.06 |
| Total | 712,717,808.79 | 805,215,921.34 |
(1) At the end of the year, the funds deposited in Sichuan Changhong Group Finance Co., Ltd. (hereinafter
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
referred to as "Changhong Finance Company", a non-bank financial institution approved by China BankingRegulatory Commission (CBRC) [YJF (2013) No.423]) were converted into functional currency, totaling RMB3,464,999,932.49, of which RMB 1,934,680,000.00 was time deposit, RMB 1,043,509,526.87 was currentdeposit, and RMB 486,810,405.62 was the earnest money.
(2) The restricted monetary funds are the earnest money of RMB 712,177,743.52, the restricted balanceof the co-management account of RMB 506,171.40, and the bank deposit of RMB 6,093,218.00 frozen due tolitigation.
2. Tradable financial assets
| Item | Balance at year-end | Balance at year-begin |
| Financial assets measured at fair value and whose changes are included in current gains/losses | 57,660,588.67 | 17,997,086.19 |
| Including: Derivative financial assets | 57,660,588.67 | 17,997,086.19 |
Tradable financial assets refers to the RMB forward exchange fund in Current Year
3. Note receivable
(1) Category of note receivable
| Item | Balance at year-end | Balance at year-begin |
| Bank acceptance | 2,216,752.22 | |
| Less: Bad debt provision | ||
| Book value | 2,216,752.22 |
(2) Notes endorsement or discount and undue on balance sheet date
N/A
(3) Notes transfer to account receivable due for failure implementation by drawer at year-end
| Item | Amount of accounts receivable transferred at year-end |
| Bank acceptance | 300,000.00 |
| Trade acceptance | 85,254,715.65 |
| Total | 85,254,715.65 |
(4) By accrual of bad debt provision
| Category | Amount at year-begin | ||||
| Book balance | Bad debt provision | Book value | |||
| Amount | Ratio (%) | Amount | Ratio (%) | ||
| With bad debt provision accrual on single item | 2,216,752.22 | 100.00 | 2,216,752.22 | ||
| Including: Bank acceptance | 2,216,752.22 | 100.00 | 2,216,752.22 | ||
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
| Category | Amount at year-begin | ||||
| Book balance | Bad debt provision | Book value | |||
| Amount | Ratio (%) | Amount | Ratio (%) | ||
| With bad debt provision accrual on portfolio | |||||
| Including: Trade acceptance | |||||
| Total | 2,216,752.22 | 100.00 | 2,216,752.22 | ||
1) Note receivable withdrawal bad debt provision on single item
| Name | Balance at year-begin | |||
| Book balance | Bad debt provision | Provision ratio (%) | Provision reason | |
| Bank acceptance | 2,216,752.22 | Minimal risk, holding maturity acceptance | ||
| Total | 2,216,752.22 | |||
(2) Bad debt provision of note receivable that has been accrued, withdrawn, and reversed this yearN/A
(3) No note receivable actually written off in this year
N/A.
4. Account receivable
(1) Category of account receivable by bad debt accrual
| Category | Amount at year-end | ||||
| Book balance | Bad debt provision | Book value | |||
| Amount | Ratio (%) | Amount | Ratio (%) | ||
| Account receivable that withdrawal bad debt provision by single item | 781,312,227.18 | 49.90 | 140,035,432.60 | 17.92 | 641,276,794.58 |
| Including: current payment with related party | 651,212,122.14 | 41.60 | 111,191,911.65 | 17.07 | 540,020,210.49 |
| Account receivable with letter of credit | 70,940,571.45 | 4.53 | 70,940,571.45 | ||
| Account receivable with single minor amount but withdrawal single item bad debt provision | 59,159,533.59 | 3.77 | 28,843,520.95 | 48.76 | 30,316,012.64 |
| Account receivable withdrawal bad debt provision by portfolio | 784,251,607.97 | 50.10 | 118,656,456.70 | 15.13 | 665,595,151.27 |
| Including: account receivable of engineering customers | 201,410,848.70 | 12.87 | 24,773,169.64 | 12.30 | 176,637,679.06 |
| Receivables other than engineering customers | 582,840,759.27 | 37.23 | 93,883,287.06 | 16.11 | 488,957,472.21 |
| Total | 1,565,563,835.15 | 100.00 | 258,691,889.30 | 16.52 | 1,306,871,945.85 |
Continued
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
| Category | Amount at year-begin | ||||
| Book balance | Bad debt provision | Book value | |||
| Amount | Ratio (%) | Amount | Ratio (%) | ||
| Account receivable that withdrawal bad debt provision by single item | 822,475,594.55 | 53.40 | 25,372,653.49 | 3.08 | 797,102,941.06 |
| Including: current payment with related party | 754,228,757.41 | 48.97 | 4,149,753.85 | 0.55 | 750,079,003.56 |
| Account receivable with letter of credit | 47,023,937.50 | 3.05 | 47,023,937.50 | ||
| Account receivable with single minor amount but withdrawal single item bad debt provision | 21,222,899.64 | 1.38 | 21,222,899.64 | 100.00 | |
| Account receivable withdrawal bad debt provision by portfolio | 717,853,201.83 | 46.60 | 74,081,451.61 | 10.32 | 643,771,750.22 |
| Including: account receivable of engineering customers | 191,420,885.49 | 12.43 | 15,308,246.27 | 8.00 | 176,112,639.22 |
| Receivables other than engineering customers | 526,432,316.34 | 34.17 | 58,773,205.34 | 11.16 | 467,659,111.00 |
| Total | 1,540,328,796.38 | 100.00 | 99,454,105.10 | 6.46 | 1,440,874,691.28 |
1) Account receivable that withdrawal bad debt provision by single item
Account receivable with single minor amount but withdrawal bad debt provision singly, refers to the minorsingle receivables, and withdrawal bad debt provision by combination shows no risk characteristic of thereceivables, 90 clients involved.
2) Account receivable withdrawal bad debt provision by portfolio
A.Account receivable of engineering customers
| Account age | Balance at year-end | ||
| Book balance | Bad debt provision | Provision ratio (%) | |
| Within 3 months (3 months included) | 46,445,327.67 | ||
| More than 3 months and less than 6 months (6 months included) | 18,955,344.03 | ||
| Over 6 months and within one year (One year included) | 42,492,137.30 | ||
| Over one year - within 2 years (2 years included) | 73,286,167.38 | 14,657,233.48 | 20.00 |
| Over 2 years - within 3 years (3 years included) | 20,231,872.32 | 10,115,936.16 | 50.00 |
| Over 3 years | 100.00 | ||
| Total | 201,410,848.70 | 24,773,169.64 | |
Continued
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
| Account age | Balance at year-begin | ||
| Book balance | Bad debt provision | Provision ratio (%) | |
| Within 3 months (3 months included) | 47,442,159.78 | ||
| More than 3 months and less than 6 months (6 months included) | 66,786,580.82 | ||
| Over 6 months and within one year (One year included) | 24,376,909.49 | ||
| Over one year - within 2 years (2 years included) | 38,592,189.76 | 7,718,437.95 | 20.00 |
| Over 2 years - within 3 years (3 years included) | 13,266,474.64 | 6,633,237.32 | 50.00 |
| Over 3 years | 956,571.00 | 956,571.00 | 100.00 |
| Total | 191,420,885.49 | 15,308,246.27 | |
B.Receivables other than engineering customers
| Account age | Balance at year-end | ||
| Book balance | Bad debt provision | Provision ratio (%) | |
| Within 3 months (3 months included) | 388,904,609.29 | 3,889,046.09 | 1.00 |
| More than 3 months and less than 6 months (6 months included) | 27,600,654.77 | 2,760,065.48 | 10.00 |
| Over 6 months and within one year (One year included) | 11,098,413.19 | 2,219,682.64 | 20.00 |
| Over one year - within 2 years (2 years included) | 136,495,488.03 | 68,247,744.02 | 50.00 |
| Over 2 years - within 3 years (3 years included) | 9,874,225.80 | 7,899,380.64 | 80.00 |
| Over 3 years | 8,867,368.19 | 8,867,368.19 | 100.00 |
| Total | 582,840,759.27 | 93,883,287.06 | |
Continued
| Account age | Balance at year-begin | ||
| Book balance | Bad debt provision | Provision ratio (%) | |
| Within 3 months (3 months included) | 299,994,550.94 | 2,999,945.51 | 1.00 |
| More than 3 months and less than 6 months (6 months included) | 68,972,844.55 | 6,897,284.46 | 10.00 |
| Over 6 months and within one year (One year included) | 126,004,879.57 | 25,200,975.91 | 20.00 |
| Over one year - within 2 years (2 years included) | 12,130,576.34 | 6,065,288.17 | 50.00 |
| Over 2 years - within 3 years (3 years included) | 8,598,768.25 | 6,879,014.60 | 80.00 |
| Over 3 years | 10,730,696.69 | 10,730,696.69 | 100.00 |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
| Account age | Balance at year-begin | ||
| Book balance | Bad debt provision | Provision ratio (%) | |
| Total | 526,432,316.34 | 58,773,205.34 | |
(2) By account age
| Account age | Balance at year-end | Balance at year-begin |
| Within 3 months (3 months included) | 839,113,924.70 | 1,081,226,013.94 |
| More than 3 months and less than 6 months (6 months included) | 319,861,920.01 | 162,654,138.54 |
| Over 6 months and within one year (One year included) | 94,045,030.09 | 179,880,109.29 |
| Over one year - within 2 years (2 years included) | 241,992,516.95 | 63,134,405.85 |
| Over 2 years - within 3 years (3 years included) | 32,346,833.25 | 23,736,943.93 |
| Over 3 years | 38,203,610.15 | 29,697,184.83 |
| Total | 1,565,563,835.15 | 1,540,328,796.38 |
(3) Bad debt provision of accounts receivable this year
| Category | Balance at year-begin | Changes this year | Balance at year-end | |||
| Accrual | Withdrawal or reversal | Resale or write-off | Other decreases | |||
| Bad debt provision | 99,454,105.10 | 165,423,701.32 | 2,834,795.58 | 1,307,424.41 | 2,043,697.13 | 258,691,889.30 |
| Total | 99,454,105.10 | 165,423,701.32 | 2,834,795.58 | 1,307,424.41 | 2,043,697.13 | 258,691,889.30 |
(4) Account receivable actually written-off in Current Year: 1,307,424.41 yuan.
(5) Top five receivables collected by arrears party amounting to 800,614,365.63 yuan in total, accounted for
51.14% of the receivables of current year-end, the bad debt provision accrual correspondingly amounting to141,110,475.64 yuan at year-end balance.
(6) Account receivable terminated recognization due to the transfer of financial assets of 4, 4,808,159,143.67yuan.
(7) No assets and liability transfer Account receivable and continues to involve at year-end.
5. Receivables financing
| Item | Balance at year-end | Balance at year-begin |
| Bank acceptance | 1,446,358,719.88 | 1,808,109,301.56 |
| Total | 1,446,358,719.88 | 1,808,109,301.56 |
(1) Notes receivable already pledged that presented in receivables financing at the end of the year:
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
| Item | Amount pledged at year-end | Amount pledged at year-begin |
| Bank acceptance | 405,400,483.49 | 385,477,263.99 |
Note: with purpose of improving the note utilization, the Company draw up bank acceptance by pledge partsof the outstanding notes receivable to the bank. For details of the pledge of bills receivable, see Note VI. 65.Assets with restricted ownership or use rights.
(2) Notes endorsement or discount and undue on balance sheet date listed in receivables financing at the endof the year
| Item | Amount derecognition at year-end | Amount without derecognition at year-end |
| Bank acceptance | 869,341,485.89 | |
| Total | 869,341,485.89 |
6. Accounts paid in advance
(1) Age of account paid in advance
| Item | Balance at year-end | Balance at year-begin | ||
| Amount | Ratio (%) | Amount | Ratio (%) | |
| Within one year | 39,700,777.69 | 86.57 | 28,208,857.49 | 94.77 |
| 1-2 years | 5,042,628.29 | 11.00 | 1,557,939.85 | 5.23 |
| 2-3 years | 1,116,085.57 | 2.43 | ||
| Over 3 years | ||||
| Total | 45,859,491.55 | 100.00 | 29,766,797.34 | 100.00 |
(2) Top 5 of account paid in advance in balance at year-end amounting to 38,269,243.31 yuan, accounted for
83.45% of the account.
7. Other account receivable
| Item | Balance at year-end | Balance at year-begin |
| Other account receivable | 88,354,803.24 | 111,652,635.86 |
| Total | 88,354,803.24 | 111,652,635.86 |
(1) Category of other account receivable
| Nature | Book balance at year-end | Book balance at year-begin |
| Export rebate | 13,304,094.59 | 26,634,190.54 |
| Cash deposit | 53,876,630.71 | 70,481,345.37 |
| Loans of employee’s pretty cash | 19,142,320.86 | 12,299,111.06 |
| Related party not in consolidation statement | 716,725.90 | 718,189.14 |
| Advance money temporary | 3,122,122.93 | 355,045.58 |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
| Nature | Book balance at year-end | Book balance at year-begin |
| Other | 1,174,866.78 | 2,289,144.60 |
| Total | 91,336,761.77 | 112,777,026.29 |
(2) Other account receivable bad debt reserves
| Bad debt provision | First stage | Second stage | Third stage | Total |
| Expected credit loss in next 12 months | Expected credit loss for the whole duration (no credit impairment) | Expected credit loss for the whole duration (credit impairment has occurred) | ||
| Balance as at 1 Jan. 2022 | 1,074,390.43 | 50,000.00 | 1,124,390.43 | |
| Book balance of other account receivable in Current Year as at 1 Jan. 2022 | — | — | — | — |
| --Transfer to the second stage | ||||
| -- Transfer to the third stage | ||||
| -- Reversal to the second stage | ||||
| -- Reversal to the first stage | ||||
| Provision in Current Year | 616,626.62 | 1,241,233.63 | 1,857,860.25 | |
| Reversal in Current Year | ||||
| Conversion in Current Year | ||||
| Write off in Current Year | ||||
| Other change | 292.15 | 292.15 | ||
| Balance as at 31 Dec. 2022 | 1,690,724.90 | 1,291,233.63 | 2,981,958.53 |
(3) By account age
| Account age | Balance at year-end | Balance at year-begin |
| Within 3 months (3 months included) | 32,703,626.46 | 50,798,283.74 |
| More than 3 months and less than 6 months (6 months included) | 3,033,052.73 | 15,511,159.70 |
| Over 6 months and within one year (One year included) | 9,242,123.46 | 7,875,791.66 |
| Over one year - within 2 years (2 years included) | 16,985,265.38 | 28,844,885.97 |
| Over 2 years - within 3 years (3 years included) | 22,359,916.12 | 4,113,598.75 |
| Over 3 years | 7,012,777.62 | 5,633,306.47 |
| Total | 91,336,761.77 | 112,777,026.29 |
(4) Top 5 other receivables collected by arrears party at balance of period-end
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
| Name | Nature | Balance at year-end | Account age | Proportion in total other receivables ending balance (%) | Bad debt provision Balance at year-end |
| Unit I | Tax rebate | 13,304,094.59 | Within 3 months | 14.57 | |
| Unit II | Cash deposit | 8,780,849.40 | 2-3 years | 9.61 | |
| Unit III | Cash deposit | 5,320,000.00 | 6 months-1 year | 5.82 | |
| Unit IV | Cash deposit | 3,541,093.00 | 1-2 years | 3.88 | |
| Unit V | Cash deposit | 2,044,912.00 | 1-2 years,2-3 years | 2.24 | |
| Total | — | 32,990,948.99 | 36.12 |
(5) No other account receivable involved government subsidies
(6) No other receivables terminated recognition due to the transfer of financial assets
(7) No assets and liability transfer other receivables and continues to involve
8. Inventories
(1) Classification of inventories
| Item | Amount at year-end | ||
| Book balance | Inventory price decline provision/contract performance cost impairment provision | Book value | |
| Raw materials | 174,848,711.84 | 6,676,011.97 | 168,172,699.87 |
| Stock commodities | 938,676,768.88 | 48,374,183.50 | 890,302,585.38 |
| Low value consumable articles | 2,653,770.39 | 871,871.72 | 1,781,898.67 |
| Goods in transit | 578,924,325.36 | 6,074,817.77 | 572,849,507.59 |
| Goods-in-process | 7,901,880.53 | 7,901,880.53 | |
| Contract performance cost | 41,622,651.08 | 41,622,651.08 | |
| Deferred expense for mould | 27,675,710.59 | 27,675,710.59 | |
| Total | 1,772,303,818.67 | 61,996,884.96 | 1,710,306,933.71 |
Continued
| Item | Amount at year-begin | ||
| Book balance | Inventory price decline provision/contract performance cost impairment provision | Book value | |
| Raw materials | 129,438,627.36 | 8,482,723.94 | 120,955,903.42 |
| Stock commodities | 828,837,153.50 | 51,052,406.21 | 777,784,747.29 |
| Low value consumable articles | 5,564,313.19 | 954,827.34 | 4,609,485.85 |
| Goods in transit | 295,059,984.05 | 8,068,827.90 | 286,991,156.15 |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
| Item | Amount at year-begin | ||
| Book balance | Inventory price decline provision/contract performance cost impairment provision | Book value | |
| Goods-in-process | 5,351,870.75 | 5,351,870.75 | |
| Contract performance cost | 123,275,655.95 | 241,230.88 | 123,034,425.07 |
| Deferred expense for mould | 37,629,831.27 | 37,629,831.27 | |
| Total | 1,425,157,436.07 | 68,800,016.27 | 1,356,357,419.80 |
(2) Provision for inventory depreciation and contract performance cost impairment provision
| Item | Amount at year-begin | Increase this year | Decrease this year | Amount at year-end | ||
| Accrual | Other | Reversal or reselling | Other | |||
| Raw materials | 8,482,723.94 | 2,876,381.98 | 4,683,093.95 | 6,676,011.97 | ||
| Stock commodities | 51,052,406.21 | 25,372,422.96 | 28,031,476.43 | 19,169.24 | 48,374,183.50 | |
| Goods in transit | 8,068,827.90 | 12,499,860.40 | 14,493,870.53 | 6,074,817.77 | ||
| Low value consumable articles | 954,827.34 | 800,167.21 | 883,122.83 | 871,871.72 | ||
| Contract performance cost | 241,230.88 | 241,230.88 | ||||
| Total | 68,800,016.27 | 41,548,832.55 | 48,332,794.62 | 19,169.24 | 61,996,884.96 | |
(3) Accrual for inventory falling price reserves
| Item | Specific basis for determining of net realizable value | Reasons for the reversal or reselling in Current Year |
| Raw materials | Cost is higher than net realizable value (The processed products are decline) | For production |
| Stock commodities | Cost is higher than net realizable value (The market price at period-end fell) | For sale |
| Goods in transit | Cost is higher than net realizable value (The market price at period-end fell) | For sale |
| Low value consumable articles | Cost is higher than net realizable value | Already used |
| Contract performance cost | Engineering construction Cost is higher than net realizable value (The processed products are decline) | Already used |
9. Contract assets
(1) Contract assets
| Item | Ending balance | Opening balance | ||||
| Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
| Warranty | 4,301,610.03 | 770,687.90 | 3,530,922.13 | |||
| Total | 4,301,610.03 | 770,687.90 | 3,530,922.13 | |||
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
(2) Provision for impairment of contract asset in the Period
| Items | Accrual | Withdrawal or reversal | Resale or write-off | Reason |
| Bad debt provision | 770,687.90 | |||
| Total | 770,687.90 | — |
10. Non-current assets coming due within one year
| Items | Balance at year-end | Balance at year-begin |
| Debt investment due within one yea | 170,167,638.89 | |
| Total | 170,167,638.89 |
11. Other current assets
| Item | Balance at year-end | Balance at year-begin |
| Value-added tax to be deducted | 39,540,856.28 | 110,346,536.34 |
| Advance payment of income tax | 22,673,762.88 | 6,114,297.55 |
| Contract acquisition cost | 5,654,727.03 | 7,740,783.12 |
| Prepaid disability insurance | 39,317.44 | |
| Held to maturity fixed deposits | 50,559,479.17 | |
| Local sales tax in Pakistan | 1,269,125.78 | |
| Other | 891,480.71 | |
| Total | 120,589,431.85 | 124,240,934.45 |
12.Creditor's rights investment
| Items | Balance at year-end | Balance at year-begin | ||||
| Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
| Large certificates of deposit | 121,543,750.00 | 121,543,750.00 | ||||
| Total | 121,543,750.00 | 121,543,750.00 | ||||
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
13. Long-term equity investment
| Invested enterprise | Balance at year-begin | Changes in Current Year | Balance at year-end | Balance at year-end of impairment | |||||||
| Additional investment | Disinvestment | Investment profit and loss confirmed by equity method | Other comprehensive income adjustment | Other changes of equity | Declaration of cash dividends or profits | Provision for impairment | Other | ||||
| Associated companies | |||||||||||
| 1.Hefei Xingmei Assets Management Co., Ltd. | 19,835,366.84 | 5,133,209.60 | 5,069,400.00 | 19,899,176.44 | |||||||
| 2.Sichuan Zhiyijia Network Technology Co., Ltd. note1 | 34,084,025.62 | 17,766,153.99 | 51,850,179.61 | ||||||||
| 3.Hong Yuan Ground Energy Heat Tech. Co., Ltd.note2 | 20,630,114.17 | -3,611,072.36 | 17,019,041.81 | ||||||||
| 4.Sichuan Tianyou Guigu Technology Co., Ltd.note3 | 2,974,188.94 | 136,392.93 | 3,110,581.87 | ||||||||
| 5.Chengdu Guigu Environmental Tech. Co., Ltd.note4 | 9,107,964.96 | -602,516.19 | 8,505,448.77 | ||||||||
| 6.ChanghongRuba ElectricCompany(Private)Ltd.note5 | |||||||||||
| 7.Hefei Xinmei Solar Energy Technology Co., Ltd.note6 | 1,617,928.00 | 1,617,928.00 | |||||||||
| Total | 86,631,660.53 | 20,440,095.97 | 6,687,328.00 | 100,384,428.50 | |||||||
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
Note 1: on 16 December 2014, the Company executed a joint venture agreement with its controlling shareholderSichuan Changhong Electric Co., LTD, targeting to jointly establish Sichuan Zhiyijia Network Technology Co.,Ltd. On 5 January 2015, Sichuan Zhiyijia Network Technology Co., Ltd was officially incorporated with registeredcapital of 50 million yuan, among which, the Company made contribution of 15 million yuanwith shareholdingproportion of 30% and Sichuan Changhong Electric Co., LTD made contribution of 35 million yuanwithshareholding proportion of 70%. In 2019, the Company increase capital of 29,087,040.00 yuan (of which: 20million yuan reckoned in registered capital and 9,087,040 yuan reckoned in capital reserves) to Zhiyijia withshareholding ratio up to 50%.Note 2: subsidiary Sichuan Changhong Air Conditioner Co., Ltd (“Changhong Air Conditioner”) and Hengyouyuan Technology Development Group Co., Ltd. (“Hengyou yuan”) cooperated to establish Hong Yuan GroundEnergy Heat Technology Co., Ltd. on 28 October 2015. The registered capital of the company is 50 million yuan,among which, Changhong Air Conditioner contributed 24.5 million yuan, accounting for 49% of the registeredcapital, and Hengyou yuan contributed 25.5 million yuan, accounting for 51% of the registered capital.Note 3: Sichuan Tianyou Guigu Technology Co., Ltd. was incorporated on 31 March 2015 with registered capitalof 100 million yuan. Our subsidiary Changhong Air Conditioner made capital contribution of RMB 25 million incash, accounting for 25% of the registered capital. Chengdu Jiaodao Property Development Company made capitalcontribution of 20 million yuan, accounting for 20% of the registered capital. Chengdu Southwest JiaotongUniversity Industry (Group) Co., Ltd made capital contribution of 20 million yuan, accounting for 20% of theregistered capital. Mianyang Investment Holding (Group) Co., Ltd made capital contribution of 5 million yuan,accounting for 5% of the registered capital. Shanghai Zhongcheng Xindaya Financial Information Service Co.,Ltd made capital contribution of 5 million yuan, accounting for 5% of the registered capital. Jiangsu RunyeInvestment Co., Ltd. made capital contribution of 10 million yuan, accounting for 10% of the registered capital.In November 2015, Jiangsu Runye Investment Co., Ltd. transferred all its 10% shares to Sichuan Shuye JiachenReal Estate Development Co., Ltd.;Chengdu Dongyu Shangmao Co., Ltd made capital contribution of 15 millionyuan, accounting for 15% of the registered capital.In November 2015, Chengdu Dongyu Shangmao Co., Ltd.transferred all its 15% shares to Chengdu Dongyu No. 1 Enterprise Management Consulting Partnership (LimitedPartnership).In 2016, shareholders meeting of Sichuan Tianyou Guigu Technology Co., Ltd. agreed to reduce the50 million Yuan capital, the shareholders are reducing the capital by ratio of share-holding. After capital reduction,subsidiary Changhong Air conditioner contributed 12.5 million Yuan, representing 25% of the registered capital.Note 4: Chengdu Guigu Environmental Tech. Co., Ltd. was incorporated on 22 May 2013 with registered capitalof 40 million yuan. Our subsidiary Changhong Air Conditioner made capital contribution of 10 million yuan,accounting for 25% of the registered capital. Chengdu Jiaodao Property Development Company made capitalcontribution of 8 million yuan, accounting for 20% of the registered capital. Chengdu Southwest JiaotongUniversity Industry (Group) Co., Ltd made capital contribution of 8 million yuan, accounting for 20% of theregistered capital. Mianyang Investment Holding (Group) Co., Ltd made capital contribution of 2 million yuan,accounting for 5% of the registered capital. Shanghai Zhongcheng Xindaya Financial Information Service Co.,Ltd made capital contribution of 2 million yuan, accounting for 5% of the registered capital. Sichuan Shuye
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
Jiachen Property Development Company made capital contribution of 4 million yuan, accounting for 10% of theregistered capital. Chengdu Dongyu Shangmao Co., Ltd made capital contribution of 6 million yuan, accountingfor 15% of the registered capitalNote 5: Zhongshan Changhong, a subsidiary of the Company, entered into a supplemental joint venture agreementwith RUBA Comprehensive Trading Company in 2017, pursuant to which, both parties agreed to increase capitalcontribution of US$ 1,130,191.00, among which, Zhongshan Changhong subscribed to contribute US$ 452,076.00(equivalent to 3,001,649.02 yuan on the actual contribution date) according to the original shareholding proportionof 40% and RUBA Comprehensive Trading Company subscribed to contribute US$ 678,115.00 according to theoriginal shareholding proportion of 60%.Note 6: Hefei Meiling Solar Energy Technology Co., Ltd. was incorporated on April 18, 2002, with a registeredcapital of 10 million yuan. Subsidiary Hefei Meiling Group Holdings Limited invested 3.1114 million yuan,accounting for 31.114% of the registered capital; Hefei Huayi Investment Co., Ltd. invested 4.972 million yuan,accounting for 49.72% of the registered capital; Hefei Xingtai Asset Management Co., Ltd. invested 1.9166million yuan, accounting for 19.166% of the registered capital.
14. Other non-current financial assets
| Item | Ending balance | Opening balance |
| Sichuan Changhong Group Finance Co., Ltd. | 542,489,224.37 | 532,961,488.43 |
| Sichuan Hongyun New-Generation Information technology Venture Capital Fund Partnership (limited partnership) | 41,015,878.36 | 44,018,952.27 |
| Changhong Group Sichuan Shenwan Hongyuan Strategic New Industrial Parent Fund Partnership (limited partnership) | 40,044,345.58 | |
| Huishang Bank Co., Ltd. | 5,000,000.00 | 5,000,000.00 |
| Total | 628,549,448.31 | 581,980,440.70 |
15. Investment real estate
(1) Investment real estate measured at costs
| Item | House and buildings | Total |
| I.Original book value | ||
| 1.Balance at year-begin | 60,688,532.10 | 60,688,532.10 |
| 2.Increase in this year | 1,672,611.37 | 1,672,611.37 |
| (1) Construction in progress transfer-in | 1,672,611.37 | 1,672,611.37 |
| 3.Decrease in this year | ||
| 4.Balance at year-end | 62,361,143.47 | 62,361,143.47 |
| II.Accumulated depreciation and accumulated amortization | ||
| 1.Balance at year-begin | 7,538,597.65 | 7,538,597.65 |
| 2.Increase in this year | 1,924,484.93 | 1,924,484.93 |
| (1)Provision or amortization | 1,924,484.93 | 1,924,484.93 |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
| Item | House and buildings | Total |
| 3.Decrease in this year | ||
| 4.Balance at year-end | 9,463,082.58 | 9,463,082.58 |
| III.Impairment provision | ||
| IV.Book value | ||
| 1.Ending book value | 52,898,060.89 | 52,898,060.89 |
| 2. Opening book value | 53,149,934.45 | 53,149,934.45 |
(2) No investment real estate measured by fair value at year-end.
(3) Particular about mortgage of investment property at year-end.
| Name | Original book value | Accumulated depreciation | Impairment provision | Book value |
| House and buildings | 5,795,017.72 | 2,516,796.28 | 3,278,221.44 |
(4) Investment real estate without property certification held
| Item | Book value | Reasons for failing to complete property rights certificate |
| J04workshop | 27,608,901.81 | Related property rights in procedure |
| J03workshop | 19,079,284.46 | Related property rights in procedure |
| J20 air compressor station workshop | 1,363,379.03 | Related property rights in procedure |
| J18 opening and closing office | 659,781.87 | Related property rights in procedure |
| Total | 48,711,347.17 |
16. Fixed assets
| Item | Ending book value | Opening book value |
| Fixed assets | 2,197,260,683.20 | 2,227,247,182.81 |
| Disposal of fixed assets | 32,293,183.76 | 75,875,517.11 |
| Total | 2,229,553,866.96 | 2,303,122,699.92 |
16.1 Fixed assets
(1) Fixed assets
| Item | House and buildings | Machinery equipment | Transport equipment | Other equipment | Total |
| I.Original book value | |||||
| 1.Balance at year-begin | 1,688,670,197.57 | 1,768,708,568.16 | 34,465,918.34 | 220,259,731.03 | 3,712,104,415.10 |
| 2.Increase in this year | 33,406,770.15 | 153,890,428.61 | 2,587,362.39 | 25,744,754.19 | 215,629,315.34 |
| (1)Purchase | 10,837,230.20 | 1,006,678.43 | 10,194,005.47 | 22,037,914.10 |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
| Item | House and buildings | Machinery equipment | Transport equipment | Other equipment | Total |
| (2)Construction in progress transfer-in | 33,373,719.95 | 143,053,198.41 | 1,580,683.96 | 15,550,748.72 | 193,558,351.04 |
| (3)Transfer-in of investment real estate | 33,050.20 | 33,050.20 | |||
| 3.Decrease in this year | 9,747,521.00 | 57,250,084.45 | 2,845,166.13 | 2,505,563.86 | 72,348,335.44 |
| (1)Dispose or retirement | 5,603,921.90 | 42,214,384.32 | 2,664,851.21 | 2,055,258.85 | 52,538,416.28 |
| (2)Construction in progress transfer-in | 15,030,137.37 | 15,030,137.37 | |||
| (3)Decreased for change of foreign rate | 157,015.92 | 434,772.35 | 591,788.27 | ||
| (4)Temporary estimated decrease | 4,143,599.10 | 5,562.76 | 23,299.00 | 15,532.66 | 4,187,993.52 |
| 4.Balance at year-end | 1,712,329,446.72 | 1,865,348,912.32 | 34,208,114.60 | 243,498,921.36 | 3,855,385,395.00 |
| II.Accumulated depreciation | |||||
| 1.Balance at year-begin | 404,141,977.35 | 959,058,685.14 | 22,160,271.70 | 98,094,721.61 | 1,483,455,655.80 |
| 2.Increase in this year | 53,765,144.15 | 147,665,734.13 | 2,950,782.94 | 17,461,192.40 | 221,842,853.62 |
| (1)Accrual | 53,765,144.15 | 147,665,734.13 | 2,950,782.94 | 17,461,192.40 | 221,842,853.62 |
| 3.Decrease in this year | 2,650,171.03 | 42,412,485.79 | 2,664,973.20 | 1,515,760.22 | 49,243,390.24 |
| (1)Dispose or retirement | 2,650,171.03 | 38,300,533.73 | 2,538,022.63 | 1,234,274.34 | 44,723,001.73 |
| (2)Construction in progress transfer-in | 4,111,952.06 | 4,111,952.06 | |||
| (3)Decreased for change of foreign rate | 126,950.57 | 281,485.88 | 408,436.45 | ||
| 4.Balance at year-end | 455,256,950.47 | 1,064,311,933.48 | 22,446,081.44 | 114,040,153.79 | 1,656,055,119.18 |
| III.Impairment provision | |||||
| 1.Balance at year-begin | 1,260,961.87 | 140,614.62 | 1,401,576.49 | ||
| 2.Increase in this year | 479,025.48 | 868,678.48 | 1,347,703.96 | ||
| (1)Accrual | 479,025.48 | 868,678.48 | 1,347,703.96 | ||
| 3.Decrease in this year | 679,687.83 | 679,687.83 | |||
| (1)Dispose or retirement | 679,687.83 | 679,687.83 | |||
| 4.Balance at year-end | 1,060,299.52 | 1,009,293.10 | 2,069,592.62 | ||
| IV.Book value | |||||
| 1.Ending book value | 1,257,072,496.25 | 799,976,679.32 | 11,762,033.16 | 128,449,474.47 | 2,197,260,683.20 |
| 2. Opening book value | 1,284,528,220.22 | 808,388,921.15 | 12,305,646.64 | 122,024,394.80 | 2,227,247,182.81 |
The new fixed assets in this year mainly due to the 193,558,351.04 yuan transfer from construction in process;decrease of the fixed assets in Current Year mainly including assets dispose for retirement.
(2) Fixed assets temporary idle at year-end.
| Name | Original book value | Accumulated depreciation | Impairment provision | Book value |
| Machinery equipment | 1,854,020.67 | 572,676.72 | 1,281,343.95 |
(3) Particular about mortgage of investment property at period-end
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
| Name | Original book value | Accumulated depreciation | Impairment provision | Book value |
| House and buildings | 477,550,851.88 | 141,937,109.02 | 335,613,742.86 |
(4) Fixed assets leased through operating lease at year-end
| Item | Original book value | Accumulated depreciation | Impairment provision | Book value |
| House and buildings | 73,601,326.58 | 27,839,014.41 | 45,762,312.17 | |
| Machinery equipment | 20,976,176.45 | 11,004,856.14 | 9,971,320.31 | |
| Other equipment | 3,656,583.85 | 2,116,349.54 | 1,540,234.31 | |
| Total | 98,234,086.88 | 40,960,220.09 | 57,273,866.79 |
(5) Fixed assets without property certificate
| Item | Book value | Reason of not complete the property certificate |
| J07 electrical workshop | 45,375,230.35 | Related property rights in procedure |
| Testing and experiment center building | 37,237,821.41 | Related property rights in procedure |
| J02workshop | 29,190,459.80 | Related property rights in procedure |
| J05 evaporator and condenser workshop | 28,110,866.40 | Related property rights in procedure |
| J01workshop | 27,055,773.54 | Related property rights in procedure |
| II section canteen of living area | 19,789,611.05 | Related property rights in procedure |
| J06 central air-conditioner workshop | 19,088,777.67 | Related property rights in procedure |
| J50finished product warehouse | 16,815,043.83 | Related property rights in procedure |
| J51finished product warehouse | 16,315,303.77 | Related property rights in procedure |
| J53finished product warehouse | 12,379,999.25 | Related property rights in procedure |
| J52finished product warehouse | 11,828,694.49 | Related property rights in procedure |
| J54finished product warehouse | 11,570,819.46 | Related property rights in procedure |
| J52finished product warehouse | 10,667,872.77 | Related property rights in procedure |
| J55finished product warehouse | 10,667,872.77 | Related property rights in procedure |
| J09raw material warehouse | 6,470,467.03 | Related property rights in procedure |
| J10raw material warehouse | 5,000,532.72 | Related property rights in procedure |
| J11raw material warehouse | 4,926,148.78 | Related property rights in procedure |
| J08 packing materials warehouse | 4,487,267.91 | Related property rights in procedure |
| 4# makeshift shelter | 4,341,369.51 | Related property rights in procedure |
| J17 chemical storage | 1,536,669.90 | Related property rights in procedure |
| J15 house of refrigerant forklift | 1,505,865.19 | Related property rights in procedure |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
| Item | Book value | Reason of not complete the property certificate |
| J16 chemical storage | 1,240,156.69 | Related property rights in procedure |
| J19 main guard room | 367,877.97 | Related property rights in procedure |
| J19A guard room | 195,165.44 | Related property rights in procedure |
| J19D guard room | 143,412.11 | Related property rights in procedure |
| J19E guard room | 143,412.11 | Related property rights in procedure |
| Total | 326,452,491.92 |
(6) No fixed assets held for sale at year-end
16.2 Disposal of fixed assets
| Item | Amount at year-end | Amount at year-begin | Reasons for disposal transferred |
| Relevant assets disposal for reserved lands | 32,293,183.76 | 75,875,517.11 | Relocation for land reserve |
Pursuant to the urban planning requirements of the People’s Government of Hefei city, Hefei Land Reserve Centerplans to purchase and store the land use right of an integrated economic development zone of the Company locatedat Longgang of Hefei with an area of 103,978.9 sq.m. (Approximately 155.9684 mu, Land Use Right CertificateNo.: Dong Guo Yong (2004) Zi No. 0200, the stated use of the land is for industrial purpose). The estimatedconsideration for purchasing and storage is RMB74.48 million. The land is mainly used for the Company’swarehouse, product finishing workshop and the factory of Zhongke Meiling. Pursuant to the purchasing andstorage requirements of land use right, the land will be purchased and stored with vacant possession. In April 2013,the Company completed the relocation of occupants of the premises, and the net fixed assets in relation to the landwill transfer as disposal, accounting treatment will be conduct in line with relevant rules upon receiving of therelocation compensation.Pursuant to the urban planning requirements of Hefei Municipal Government and the Government of Feidongcounty, the land reserve center of Feidong county will purchase and store the land use right of an economicdevelopment zone located at Feidong county, Hefei city, which is owned by the Company’s subordinate companies,Equator Electric and Equator Home Appliance, respectively, with an area of 19,245.09 sq.m. (Approximately
28.87 mu, Land Use Right Certificate No.: Dong Guo Yong (2008) No. 0366, the stated use of the land is forindustrial purpose) and an area of 46,161.9 sq.m. (Approximately 69.24 mu, Land Use Right Certificate No.: DongGuo Yong (2008) No. 0367, the stated use of the land is for industrial purpose). The total consideration forpurchasing and storage is approximately 36 million yuan, of which the consideration for the land use right ownedby Equator Electric and Equator Home Appliance is approximately 10.59 million yuan and 25.41 million yuan,respectively. The Company has completed the relocation of occupants of the premises, and the net fixed assets inrelation to the land will transfer as disposal, accounting treatment will be conduct in line with relevant rules uponreceiving of the relocation compensation.No impairment of relevant assets disposal for reserved lands at year-end.
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
17. Construction in progress
| Item | Balance at year-end | Balance at year-begin |
| Construction in progress | 66,522,492.77 | 98,469,862.45 |
| Total | 66,522,492.77 | 98,469,862.45 |
(1) Details of construction in progress
| Items | Amount at year-end | Amount at year-begin | ||||
| Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
| Industrial Internet Changhong Meiling Promotion Project | 13,041,733.93 | 13,041,733.93 | 10,480,730.43 | 10,480,730.43 | ||
| Comprehensive renovation project of mixed flow of rainwater and sewage in freezer park and living area | 6,995,545.89 | 6,995,545.89 | 4,385,756.91 | 4,385,756.91 | ||
| Meiling extrusion line relocation and capacity expansion project | 6,938,682.02 | 6,938,682.02 | 3,875,215.73 | 3,875,215.73 | ||
| Multi-door shell molding line | 5,053,126.87 | 5,053,126.87 | ||||
| Front-end expansion project of Hefei base with an annual output of 10 million refrigerator cabinets | 3,242,813.99 | 3,242,813.99 | 16,686,639.69 | 16,686,639.69 | ||
| Freeze lining structure changed to bottom package side | 2,886,521.55 | 2,886,521.55 | ||||
| Commercial kitchen refrigerator cabinet project | 2,627,743.25 | 2,627,743.25 | ||||
| Comprehensive renovation project of mixed flow of rainwater and sewage in freezer park and living area | 2,597,950.95 | 2,597,950.95 | ||||
| Laboratory investment projects | 2,384,325.39 | 2,384,325.39 | ||||
| Door lining to homemade phase I project | 2,328,292.80 | 2,328,292.80 | ||||
| Supporting production equipment of washing machine | 1,919,823.02 | 1,919,823.02 | ||||
| Large refrigerator low boiling point foaming equipment renovation project | 1,652,011.04 | 1,652,011.04 | ||||
| Accident emergency pool construction project | 1,539,361.49 | 1,539,361.49 | ||||
| Refrigerator park 35 kV substation construction project | 1,273,661.54 | 1,273,661.54 | ||||
| Zhongshan Changhong technical transformation project | 615,619.91 | 615,619.91 | 4,530,389.50 | 4,530,389.50 | ||
| Liquid nitrogen tank production line construction project | 560,521.11 | 560,521.11 | 6,778,105.41 | 6,778,105.41 | ||
| Meiling PLM project | 237,168.14 | 237,168.14 | 1,636,792.46 | 1,636,792.46 | ||
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
| Items | Amount at year-end | Amount at year-begin | ||||
| Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
| 21 years of Manufacturing System Automation Project (Phase I) | 186,700.00 | 186,700.00 | 13,973,307.43 | 13,973,307.43 | ||
| Efficiency improvement of refrigerator cabinet | 182,748.20 | 182,748.20 | 4,704,867.17 | 4,704,867.17 | ||
| Overseas product upgrade supporting box shell line, door shell line and some old product competitiveness improvement projects | 3,731,036.22 | 3,731,036.22 | ||||
| Washing machine business unit MES system online project | 2,457,735.83 | 2,457,735.83 | ||||
| The third floor testing and packaging line technical transformation project | 2,707,964.62 | 2,707,964.62 | ||||
| 2022 capacity and capability improvement of the manufacturing system in Air Conditioning Company | 6,419,964.72 | 6,419,964.72 | ||||
| Other petty projects | 10,258,141.68 | 10,258,141.68 | 16,101,356.33 | 16,101,356.33 | ||
| Total | 66,522,492.77 | 66,522,492.77 | 98,469,862.45 | 98,469,862.45 | ||
(2) Changes in significant construction in progress
| Projects | Book balance at period-begin | Increase in Current Period | Transfer to fixed assets in Current Period | Other decrease | Book balance at period-end | Source of funds |
| Front-end expansion project of Hefei base with an annual output of 10 million refrigerator cabinets | 16,686,639.69 | 11,894,104.36 | 24,996,337.13 | 341,592.93 | 3,242,813.99 | Self-raised |
(Continued)
| Projects | Budget (in 10 thousand Yuan) | Proportion of project investment in budget | Progress | Accumulated amount of interest capitalization | including: interest capitalized amount of Current Period | Interest capitalization rate of Current Period |
| Front-end expansion project of Hefei base with an annual output of 10 million refrigerator cabinets | 4,121.24 | 76.76% | 80.00% |
18. Right-of-use assets
| Item | House and buildings | Total |
| I.Original book value | ||
| 1.Balance at year-begin | 54,071,205.97 | 54,071,205.97 |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
| Item | House and buildings | Total |
| 2.Increase in this year | 4,251,772.98 | 4,251,772.98 |
| (1) Rent in | 4,251,772.98 | 4,251,772.98 |
| 3. Decrease in this year | ||
| 4.Balance at year-end | 58,322,978.95 | 58,322,978.95 |
| II.Accumulated depreciation | ||
| 1.Balance at year-begin | 8,703,287.66 | 8,703,287.66 |
| 2. Increase in this year | 12,973,556.19 | 12,973,556.19 |
| (1)Accrual | 12,973,556.19 | 12,973,556.19 |
| 3. Decrease in this year | ||
| 4.Balance at year-end | 21,676,843.85 | 21,676,843.85 |
| III.Impairment provision | ||
| 1.Balance at year-begin | ||
| 2. Increase in this year | ||
| 3. Decrease in this year | ||
| 4.Balance at year-end | ||
| IV.Book value | ||
| 1.Ending book value | 36,646,135.10 | 36,646,135.10 |
| 2. Opening book value | 45,367,918.31 | 45,367,918.31 |
The Company accrual the depreciation on right-of-use assets from the commencement date of the lease period.Depending on use of the assets, amount of accrual will included in costs of relevant assets or current gain/loss.
19. Intangible assets
(1) Intangible assets
| Item | Land use right | Trademark special right | Non-patent technology | Other | Total |
| I.Original book value | |||||
| 1.Balance at year-begin | 869,724,297.57 | 283,292,439.34 | 549,144,800.67 | 137,253,797.42 | 1,839,415,335.00 |
| 2.Increase in this year | 92,927,348.72 | 31,128,053.22 | 124,055,401.94 | ||
| (1)Purchase | 443,152.20 | 1,339,017.35 | 1,782,169.55 | ||
| (2) Internal research | 91,544,681.68 | 29,789,035.87 | 121,333,717.55 | ||
| （3）Other | 939,514.84 | 939,514.84 | |||
| 3.Decrease in this year | 4,925,680.89 | 4,280,328.88 | 8,594,198.29 | 17,800,208.06 | |
| (1) Disposal | 4,925,680.89 | 4,280,328.88 | 161,699.32 | 9,367,709.09 | |
| (2)Other decreases | 8,432,498.97 | 8,432,498.97 | |||
| 4.Balance at year-end | 864,798,616.68 | 283,292,439.34 | 637,791,820.51 | 159,787,652.35 | 1,945,670,528.88 |
| II.Accumulated |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
| Item | Land use right | Trademark special right | Non-patent technology | Other | Total |
| amortization | |||||
| 1.Balance at year-begin | 198,473,939.86 | 283,292,439.34 | 348,547,882.12 | 27,185,807.78 | 857,500,069.10 |
| 2.Increase in this year | 18,409,649.29 | 105,404,686.91 | 27,431,849.23 | 151,246,185.43 | |
| (1)Accrual | 18,409,649.29 | 105,404,686.91 | 27,431,849.23 | 151,246,185.43 | |
| 3.Decrease in this year | 1,924,297.31 | 4,280,328.88 | 3,042,638.92 | 9,247,265.11 | |
| (1) Disposal | 1,924,297.31 | 4,280,328.88 | 161,699.32 | 6,366,325.51 | |
| (2)Other decreases | 2,880,939.60 | 2,880,939.60 | |||
| 4.Balance at year-end | 214,959,291.84 | 283,292,439.34 | 449,672,240.15 | 51,575,018.09 | 999,498,989.42 |
| III.Impairment provision | |||||
| 1.Balance at year-begin | 24,003,670.24 | 4,508,495.33 | 28,512,165.57 | ||
| 2.Increase in this year | 9,816,696.96 | 7,274,668.72 | 17,091,365.68 | ||
| (1)Accrual | 9,816,696.96 | 7,274,668.72 | 17,091,365.68 | ||
| 3.Decrease in this year | |||||
| 4.Balance at year-end | 33,820,367.20 | 11,783,164.05 | 45,603,531.25 | ||
| IV.Book value | |||||
| 1.Ending book value | 649,839,324.84 | 154,299,213.16 | 96,429,470.21 | 900,568,008.21 | |
| 2. Opening book value | 671,250,357.71 | 176,593,248.31 | 105,559,494.31 | 953,403,100.33 |
The intangible assets resulted from internal research takes 6.24% of the balance of intangible assets at year-end
(2) No land use right without property certification done at year-end
(3) Up to end of the 2022, mortgage of intangible assets is as follows:
| Name | Property certificate serials | Area(M2) | Net book value | Note |
| Land use right | HGYJCZi No.: 0121 | 27,120.22 | 16,458,756.38 | |
| Land use right | Wan (2019) Property right of Hefei No.:1148244/1148249/1148243/1148240/1148248/1148246/1148241/1148238/1149101/1148242/1148245/1148239/1148237/1148250/1148247/1149102 | 477,550.03 | 225,610,852.00 | |
| Land use right | Wan (2019) Property right of Feixi County No.:0061435/0061445 | 33,383.10 | 12,874,419.41 | |
| Land use right | Wan (2019) Property right of Feixi County No.:0061456/0061447/0061438/0061440/0061452/0061450/0061430/0061657 | 82,850.51 | 17,746,814.19 | |
| Total | 620,903.86 | 272,690,841.98 | ||
20. Development expense
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
| Item | Balance at year-begin | Increase this year | Decrease this year | Balance at year-end | |||
| Internal development expenditure | Other | Included in current profits and losses | Confirmed as intangible assets | Other | |||
| Technology development for Air-conditioner | 39,938,415.03 | 76,886,830.15 | 12,267,035.45 | 62,796,725.61 | 41,761,484.12 | ||
| Technology development for refrigerator | 47,790,575.83 | 81,812,957.17 | 10,679,634.61 | 58,536,991.94 | 60,386,906.45 | ||
| Total | 87,728,990.86 | 158,699,787.32 | 22,946,670.06 | 121,333,717.55 | 102,148,390.57 | ||
21. Goodwill
(1) Original value of goodwill
| Invested enterprise | Balance at year-begin | Increase this year | Decrease this year | Balance at year-end | ||
| Formation from enterprise merger | Other | Formation from enterprise merger | Other | |||
| Hefei Meiling Group Holdings Limited | 3,553,367.77 | 3,553,367.77 | ||||
| Total | 3,553,367.77 | 3,553,367.77 | ||||
(2) Impairment loss of goodwill
| Invested enterprise | Balance at year-begin | Increase this year | Decrease this year | Balance at year-end | ||
| Accrual | Other | Accrual | Other | |||
| Hefei Meiling Group Holdings Limited | 3,553,367.77 | 3,553,367.77 | ||||
| Total | 3,553,367.77 | 3,553,367.77 | ||||
Note: The Company’s goodwill has been fully accrued for impairment reserves at year-end.
22. Long-term prepaid expenses
| Item | Opening balance | Increase this period | Amortization for the period | Other decreases | Ending balance |
| Long-term unamortized expenses | 16,371,531.79 | 1,470,931.20 | 14,900,600.59 | ||
| Total | 16,371,531.79 | 1,470,931.20 | 14,900,600.59 |
23. Deferred tax assets and deferred tax liabilities
(1) Deferred income tax assets without the offset
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
| Item | Ending balance | Opening balance | ||
| Deductible temporary difference | Deferred income tax assets | Deductible temporary difference | Deferred income tax assets | |
| Deferred income tax assets recognized from assets impairment | 220,654,506.50 | 33,098,175.98 | 145,988,355.30 | 21,966,046.25 |
| Deferred income tax assets recognized from accrual liability | 12,624,332.22 | 1,893,649.84 | 11,363,601.65 | 1,704,540.25 |
| Deferred income tax assets recognized from Dismission welfare | 9,072,708.08 | 1,360,906.21 | 11,268,982.33 | 1,690,347.35 |
| Deferred income tax assets recognized from deferred income | 100,794,535.00 | 15,119,180.24 | 110,534,463.54 | 16,580,169.53 |
| Deferred income tax assets recognized from ir-reparable losses | 684,314,381.95 | 102,647,157.29 | 695,409,549.32 | 104,311,432.40 |
| Deferred income tax assets recognized for development expenditure | 5,632,939.75 | 844,940.96 | ||
| Accrued income tax assets | 8,718,636.16 | 1,666,526.91 | 8,238,783.30 | 1,235,817.50 |
| Total | 1,041,812,039.66 | 156,630,537.43 | 982,803,735.44 | 147,488,353.28 |
(2) Deferred income tax liabilities without the offset
| Item | Ending balance | Opening balance | ||
| Taxable temporary differences | Deferred income tax liability | Taxable temporary differences | Deferred income tax liability | |
| Recognized by fixed assets depreciation | 27,362,815.80 | 4,104,422.37 | 23,595,650.26 | 3,539,347.53 |
| Recognized by changes in fair value | 57,642,166.20 | 8,646,324.93 | 40,873,919.41 | 6,131,087.92 |
| Total | 85,004,982.00 | 12,750,747.30 | 64,469,569.67 | 9,670,435.45 |
(3) Details of unrecognized deferred income tax assets
| Item | Ending balance | Opening balance |
| Deductible temporary difference | 168,621,827.52 | 94,823,765.42 |
| Deductible loss | 1,068,180,146.62 | 1,075,371,859.07 |
| Total | 1,236,801,974.14 | 1,170,195,624.49 |
24. Other non-current assets
| Item | Ending balance | Opening balance |
| Prepaid equipment, engineering, etc. | 893,238.57 | 3,087,780.59 |
| Total | 893,238.57 | 3,087,780.59 |
25. Short-term loans
（1） Classification of short-term loans
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
| Category | Ending balance | Opening balance |
| Guaranteed loan | 55,000,000.00 | 5,000,000.00 |
| Loan in credit | 619,000,000.00 | 615,000,000.00 |
| Interest payable | 143,916.67 | 2,874,652.77 |
| Total | 674,143,916.67 | 622,874,652.77 |
（2） Short-term loans overdue：N/A.
26. Trading financial liability
| Item | Balance at year-end | Balance at year-begin |
| Trading financial liability | 41,961,524.78 | 12,304,272.41 |
| Including: Derivative financial liability | 41,961,524.78 | 12,304,272.41 |
27. Note payable
| Type | Balance at year-end | Balance at year-begin |
| Bank acceptance | 4,814,889,712.60 | 4,663,885,311.94 |
| Trade acceptance | 149,484,800.00 | 175,952,005.84 |
| Total | 4,964,374,512.60 | 4,839,837,317.78 |
28. Account payable
(1) Account payable
| Item | Amount at year-end | Amount at year-begin |
| Total | 2,917,997,138.00 | 2,299,103,796.88 |
| Including: Amount aged over 1 year | 60,523,652.84 | 94,640,539.62 |
(2) No major account payable with over one year book age at year-end.
29. Contract liabilities
| Item | Balance at year-end | Balance at year-begin |
| Total | 358,755,397.77 | 515,004,115.23 |
| Including: Amount aged over 1 year | 29,823,819.05 | 17,740,130.48 |
30. Wages payable
(1) Category
| Item | Balance at year-begin | Increase this year | Decrease this year | Balance at year-end |
| Short-term compensation | 241,024,057.25 | 1,728,274,699.13 | 1,646,267,687.42 | 323,031,068.96 |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
| Item | Balance at year-begin | Increase this year | Decrease this year | Balance at year-end |
| After-service welfare- defined contribution plans | 2,495,637.65 | 120,586,262.52 | 102,585,475.85 | 20,496,424.32 |
| Dismiss welfare | 3,524,726.66 | 6,455,245.61 | 5,352,550.42 | 4,627,421.85 |
| Total | 247,044,421.56 | 1,855,316,207.26 | 1,754,205,713.69 | 348,154,915.13 |
(2) Short-term compensation
| Item | Balance at year-begin | Increase this year | Decrease this year | Balance at year-end |
| Wages, bonuses, allowances and subsidies | 234,141,842.08 | 1,557,982,762.44 | 1,480,276,525.45 | 311,848,079.07 |
| Welfare for workers and staff | 100,023.78 | 44,847,702.18 | 44,545,169.14 | 402,556.82 |
| Social insurance | 1,151,987.24 | 52,120,731.25 | 48,052,032.64 | 5,220,685.85 |
| Including: Medical insurance | 1,080,480.56 | 48,302,600.73 | 44,571,328.90 | 4,811,752.39 |
| Work injury insurance | 10,353.31 | 3,507,503.01 | 3,192,679.70 | 325,176.62 |
| Maternity insurance | 61,153.37 | 310,627.51 | 288,024.04 | 83,756.84 |
| Housing accumulation fund | 4,861,802.68 | 69,569,530.45 | 69,315,982.27 | 5,115,350.86 |
| Labor union expenditure and personnel education expense | 768,401.47 | 3,753,972.81 | 4,077,977.92 | 444,396.36 |
| Total | 241,024,057.25 | 1,728,274,699.13 | 1,646,267,687.42 | 323,031,068.96 |
(3) Defined contribution plans
| Item | Balance at year-begin | Increase this year | Decrease this year | Balance at year-end |
| Basic endowment insurance | 759,812.44 | 116,403,111.82 | 98,947,118.98 | 18,215,805.28 |
| Unemployment insurance | 1,735,825.21 | 4,183,150.70 | 3,638,356.87 | 2,280,619.04 |
| Total | 2,495,637.65 | 120,586,262.52 | 102,585,475.85 | 20,496,424.32 |
31. Tax payable
| Item | Balance at year-end | Balance at year-begin |
| Value-added tax | 30,277,729.74 | 93,229,596.44 |
| Enterprise income tax | 1,822,555.65 | 3,665,806.85 |
| Individual income tax | 4,799,031.61 | 2,593,701.11 |
| Urban maintenance and construction tax | 9,544,272.36 | 8,227,864.32 |
| Real estate tax | 3,658,985.41 | 3,758,773.24 |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
| Item | Balance at year-end | Balance at year-begin |
| Land use tax | 1,431,191.08 | 1,550,831.89 |
| Educational surtax | 6,850,511.36 | 4,932,682.07 |
| Stamp tax | 3,654,400.08 | 3,798,892.56 |
| Construction fund of Water Conservancy Projects | 668,948.01 | 606,448.87 |
| Treatment fund for abandon electrics & electronics | 17,508,786.00 | 18,489,806.00 |
| Other | 71,467.32 | 1,020,458.53 |
| Total | 80,287,878.62 | 141,874,861.88 |
32. Other account payable
| Item | Balance at year-end | Balance at year-begin |
| Dividend payable | 4,978,994.16 | 4,753,764.56 |
| Other account payable | 823,228,574.05 | 746,699,003.44 |
| Total | 828,207,568.21 | 751,452,768.00 |
32.1 Dividend payable
| Item | Balance at year-end | Balance at year-begin |
| The People’s Insurance Company (Group) of China Limited | 432,607.23 | 432,607.23 |
| Hefei Branch of Bank of China | 391,245.50 | 360,506.00 |
| Hefei Collective Industrial Associatio | 391,244.89 | 360,505.44 |
| Provincial trust and investment company Wuhu office | 312,996.42 | 288,404.82 |
| China Life Insurance Group Co., Ltd. | 288,404.82 | 288,404.82 |
| BOC- Fullgoal Tianyi Securities Investment Fund | 153,697.50 | 153,697.50 |
| Other units | 3,008,797.80 | 2,869,638.75 |
| Total | 4,978,994.16 | 4,753,764.56 |
32.2 Other account payable
(1) Other account payable by nature
| Nature | Balance at year-end | Balance at year-begin |
| Accrued expenses (expenses occurred without reimbursed) | 344,028,624.89 | 364,248,335.74 |
| Receivables received temporary and deducted temporary | 13,166,091.61 | 26,847,048.85 |
| Deposit, margin | 174,331,550.53 | 148,778,715.05 |
| Not the come-and-go with related parties in statement scope | 278,716,366.01 | 187,411,658.83 |
| Other | 12,985,941.01 | 19,413,244.97 |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
| Nature | Balance at year-end | Balance at year-begin |
| Total | 823,228,574.05 | 746,699,003.44 |
(2) At end of the year, the major other account payable with account age over one year mainly refers to thedeposit and margin.
33. Non-current liability due within one year
| Item | Balance at year-end | Balance at year-begin |
| Long-term loan principal and interest due within one year | 20,211,488.89 | 320,520,933.33 |
| Long term account payable due within one year | 173,499.29 | |
| Lease liabilities due within one year | 10,075,610.19 | 12,024,045.63 |
| Total | 30,287,099.08 | 332,718,478.25 |
34. Other current liabilities
| Item | Balance at year-end | Balance at year-begin |
| Pending sales tax | 21,970,126.59 | 23,388,239.94 |
| Factoring fees payable | 635,142.92 | 785,519.22 |
| Bill recovery | 200,000.00 | |
| Total | 22,605,269.51 | 24,373,759.16 |
35. Long term borrowings
(1) Category of long term borrowings
| Category | Amount at year-end | Amount at year-begin |
| Loan in mortgage | 148,000,000.00 | 168,000,000.00 |
| Total | 148,000,000.00 | 168,000,000.00 |
(2) Long-term borrowings at year-end
| Loan from | Borrowing day | Returning day | Foreign currency | Interest rate | Amount at year-end (RMB) | Amount at year-begin(RMB) |
| EIBC (Export-Import Bank) Anhui Province Branch note1 | 2020/3/26 | 2026/11/25 | RMB | 4.405% | 98,000,000.00 | 98,000,000.00 |
| EIBC (Export-Import Bank) Anhui Province Branch note2 | 2019/12/23 | 2026/11/25 | RMB | 4.105% | 50,000,000.00 | 70,000,000.00 |
| Total | 148,000,000.00 | 168,000,000.00 |
Note 1: The Company signed the "Loan Contract (Promoting the Opening-up of Loans in China - Fixed Assets)"with the Export-Import Bank of China Anhui Branch, the Company's fixed assets and intangible assets are usedas mortgage for a long-term loan under the contract. And withdrawal of 98,000,000.00 yuan on March 26, 2020.
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
The term of the loan is from March 26, 2020 to November 25, 2026, the interest rate of the loan is determinedaccording to the market quotation rate of the loan with a term of more than 5 years reduced by 0.195%, whichfluctuates annually, and the amount of the loan is 98,000,000.00 yuan. The balance at the end of the year is RMB98,000,000.00.Note 2: The Company signed the "Loan Contract (Promoting the Opening-up of Loans in China - Fixed Assets)"with the Export-Import Bank of China Anhui Branch, the Company's investment real estate, fixed assets andintangible assets are used as mortgage for the loan. The term of the loan is from December 23, 2019 to November25, 2026, the interest rate of the loan is determined according to the market quotation rate of the loan with a termof more than 5 years reduced by 0.195%, which fluctuates annually, and the amount of the loan is 100,000,000.00yuan. According to the repayment plan agreed with the bank, the Company has repaid 30,000,000.00 yuan. It plansto repay 10,000,000.00 yuan on June 25, 2023 and repay 10,000,000.00 yuan on December 25, 2023, a total of20,000,000.00 yuan has been reclassified to non-current liabilities due within one year. The balance at the end ofthe year is RMB 50,000,000.00.
36. Lease liability
| Item | Balance at year-end | Balance at year-begin |
| Lease liability | 28,164,287.97 | 33,225,912.15 |
| Total | 28,164,287.97 | 33,225,912.15 |
37. Long-term payable
| Item | Balance at year-end | Balance at year-begin |
| Special payable | 1,145,286.48 | 1,337,643.24 |
| Total | 1,145,286.48 | 1,337,643.24 |
37.1 Special payable
| Item | Balance at year-begin | Increase this year | Decrease this year | Balance at year-end | Reason |
| Special funds for technological transformation from Zhongshan Changhong | 1,337,643.24 | 192,356.76 | 1,145,286.48 | Technology plan project in Zhongshan City |
38. Long-term wage payable
| Item | Balance at year-end | Balance at year-begin |
| Dismissal welfare | 10,790,859.64 | 9,828,300.06 |
| Total | 10,790,859.64 | 9,828,300.06 |
According to the internal early retirement policy, the long-term payable dismissal welfare bears by the Companyup to year-end amounting to10,790,859.64 yuan
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
39. Accrual liability
| Item | Balance at year-end | Balance at year-begin | Reason |
| Product quality guarantee note1 | 30,965,097.36 | 9,170,710.48 | Guarantee of product |
| Guarantee fund for quality service note1 | 399,861.15 | Guarantee of product | |
| Litigation matters note2 | 1,720,534.42 | 1,793,030.00 | |
| Total | 32,685,631.78 | 11,363,601.63 |
Note 1: Product quality deposit is the maintenance expense provided by the Company under the national policy,while quality service special guarantees capital is the warranty costs provided for product quality in addition tosuch policy. Parts of the commitments on product quality assurance beyond the national three guarantees policyare expired in 2022, the accrual liability that have not been anticipated has written-off in Current Year, actually
370,244.39 yuan written-off.
Note2 In November 2021, Zhejiang Teruisi Pharmaceutical Inc. filed a lawsuit against Zhongke Meiling for the"Cold Storage Design, Equipment Purchase and Installation Construction Contract". At present, the court isorganizing a third-party organization to conduct quality assurance for the objects under the contract. ZhongkeMeiling intends to maintain the cold storage project, and the estimated maintenance cost is 1,793,030.00 yuan.
40. Deferred income
(1) Classification of deferred income
| Item | Balance at year-begin | Increase this year | Decrease this year | Balance at year-end | Reason |
| Government subsidies---subsidies of development project | 139,155,085.63 | 14,263,200.00 | 25,925,065.87 | 127,493,219.76 | |
| Government subsidies---subsidies of Relocation | 36,508,953.20 | 2,988,261.05 | 33,520,692.15 | ||
| Total | 175,664,038.83 | 14,263,200.00 | 28,913,326.92 | 161,013,911.91 |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
(2) Government subsidy
| Item | Amount at year-begin | New subsidy in Current Year | Amount reckoned into other income in Current Year | Other changes | Amount at year-end | Assets related/Income related |
| Demonstration factory construction for the intelligent manufacturing of intelligent air-conditioner | 42,607,594.97 | 7,518,987.36 | 35,088,607.61 | Assets related | ||
| Demolition compensation of Changhong Meiling | 36,104,113.24 | 2,583,421.09 | 33,520,692.15 | Assets related | ||
| Centre for external cooperation of the environmental protection | 7,687,368.20 | 1,031,509.06 | 6,655,859.14 | Assets related | ||
| Key chip and module for transducer used and detection capacity building | 7,600,000.00 | 633,333.35 | 6,966,666.65 | Assets related | ||
| Adaptability improvement on new coolants production | 7,094,945.01 | 2,364,981.72 | 4,729,963.29 | Assets related | ||
| Subsidy for industrial development policy from Hefei for first half of 2018 | 6,544,000.00 | 1,250,000.00 | 5,294,000.00 | Assets related | ||
| Changhong Air Conditioner- relocation of production base and upgrading & expansion | 6,497,777.76 | 1,146,666.72 | 5,351,111.04 | Assets related | ||
| District-level subsidy funds for advanced manufacturing policies in the first half of 2021 | 5,595,843.75 | 479,643.75 | 5,116,200.00 | Assets related | ||
| Advanced Manufacturing Policy Municipal Award in the first half of 2020 | 5,222,875.00 | 166,780.89 | 5,056,094.11 | Assets related | ||
| Subsidy for industrial development policy from Hefei for second half of 2019 | 4,471,375.00 | 894,275.00 | 3,577,100.00 | Assets related | ||
| Special fund, government subsidy CZ059001 | 4,200,000.00 | 4,200,000.00 | Assets related | |||
| 20-year subsidy for advancing technological transformation projects | 4,108,758.34 | 535,925.00 | 3,572,833.34 | Assets related | ||
| Policy funds for manufacturing a strong province, subsidy for equipment for the technological transformation of industrial strong base | 3,125,000.00 | 625,000.00 | 2,500,000.00 | Assets related | ||
| 2021 manufacturing strong provincial policy subsidy funds | 3,056,250.00 | 261,964.29 | 2,794,285.71 | Assets related | ||
| RESEARCH AND APPLICATION OF THE VISA (VARIABLE FREQUENCY VOLUME INTEGRATED INTELLIGENT AIR-CONDITIONER) | 3,053,488.40 | 1,409,302.32 | 1,644,186.08 | Assets related | ||
| Subsidy for industrial development policy from Hefei for first | 3,005,983.33 | 434,600.00 | 2,571,383.33 | Assets related |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
| Item | Amount at year-begin | New subsidy in Current Year | Amount reckoned into other income in Current Year | Other changes | Amount at year-end | Assets related/Income related |
| half of 2020 | ||||||
| Government subsidy for new plant construction - industrialization of cryogenic refrigeration equipment | 2,791,666.67 | 500,000.00 | 2,291,666.67 | Assets related | ||
| Subsidies for intelligent transformation & upgrading of enterprises from the new industrialization policy in economic development zone | 2,675,064.58 | 605,675.00 | 2,069,389.58 | Assets related | ||
| 2020 supporting funds to support the innovation and development of artificial intelligence industry | 2,437,500.00 | 208,928.58 | 2,228,571.42 | Assets related | ||
| 2020 fund allocation for Anhui Province's triple innovation project | 2,369,791.67 | 325,000.00 | 2,044,791.67 | Assets related | ||
| Research and application of the MCU chip for inverter control | 2,300,000.00 | 1,150,000.00 | 1,150,000.00 | Assets related | ||
| Special funds for strategic emerging industry and high-end growth industry | 1,896,551.72 | 413,793.00 | 1,482,758.72 | Assets related | ||
| Industrialization of intelligent white household appliances software platform and typical application research and development | 1,575,757.60 | 727,272.72 | 848,484.88 | Assets related | ||
| Equipment subsidy for the industrial base technical renovation from Economic and Information Commission | 1,312,083.33 | 235,000.00 | 1,077,083.33 | Assets related | ||
| Upgrade project for the production line of Mianyang Meiling Intelligent Refrigerator | 1,119,166.76 | 197,499.96 | 921,666.80 | Assets related | ||
| Subsidy from Zhongshan Finance Bureau (CZ028001 provincial special project 2019) | 1,092,060.21 | 305,646.49 | 786,413.72 | Assets related | ||
| Subsidy for equipment purchasing for Hefei Tech. Improvement project in 2017 | 1,000,310.00 | 179,160.00 | 821,150.00 | Assets related | ||
| Subsidy for purchase of R & D instruments and equipment | 699,992.68 | 182,112.52 | 517,880.16 | Assets related | ||
| Promotion of the energy-saving room air conditioner | 648,453.69 | 210,309.24 | 438,144.45 | Assets related | ||
| Emerging Industry Base Fund Support Item | 613,608.25 | 76,701.04 | 536,907.21 | Assets related | ||
| Robot policy-rewards for purchasing robots | 485,031.26 | 70,125.00 | 414,906.26 | Assets related | ||
| Promoting the new industry ( annual output of 0.6 million medium& large volume environmental protection and energy saving freezer) | 456,618.69 | 304,412.52 | 152,206.17 | Assets related |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
| Item | Amount at year-begin | New subsidy in Current Year | Amount reckoned into other income in Current Year | Other changes | Amount at year-end | Assets related/Income related |
| Demolition compensation of Jiangxi Meiling | 404,839.96 | 404,839.96 | Assets related | |||
| Special fund for technical improvement | 380,238.04 | 103,809.60 | 276,428.44 | Assets related | ||
| Special fund for technical improvement | 355,708.62 | 95,810.44 | 259,898.18 | Assets related | ||
| Technical transformation of refrigerator evaporator workshop | 333,437.50 | 60,625.00 | 272,812.50 | Assets related | ||
| 2018 Zhongshan Special fund for industrial development | 292,650.70 | 77,992.32 | 214,658.38 | Assets related | ||
| Technical transformation subsidy | 177,438.37 | 31,780.00 | 145,658.37 | Assets related | ||
| Refrigerator evaporator production workshop | 128,229.27 | 29,033.03 | 99,196.24 | Assets related | ||
| Technical renovation of air conditioner production line | 94,758.27 | 60,510.05 | 34,248.22 | Assets related | ||
| Subsidy for the development on production line technical reform for green-friendly high-quality metal pipe | 47,707.99 | 40,892.59 | 6,815.40 | Assets related | ||
| In the first half of 2022, advanced manufacturing policy urban level subsidies | 11,028,800.00 | 689,300.00 | 10,339,500.00 | Assets related | ||
| 21 District-level high-quality development policy (the second batch) award and subsidy funds | 1,791,700.00 | 1,791,700.00 | Assets related | |||
| Provincial promotion of air conditioning production line upgrading technical transformation project | 1,385,600.00 | 284,759.38 | 1,100,840.62 | Assets related | ||
| Policy subsidies for advanced manufacturing industry in the second half of 2021 | 57,100.00 | 5,947.93 | 51,152.07 | Assets related | ||
| Total | 175,664,038.83 | 14,263,200.00 | 28,913,326.92 | 161,013,911.91 |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
41. Share capital
| Items | Balance at year-begin | Change during the year (+、-) | Balance at year-end | ||||
| New shares issued | Shares transferred from capital reserve | Other | Subtotal | ||||
| Total shares | 1,044,597,881.00 | -14,674,166.00 | -14,674,166.00 | 1,029,923,715.00 | |||
Note: This year's decrease is the cancellation of 14,674,166 B shares.
42. Capital reserve
| Item | Amount at year-begin | Increase this year | Decrease this year | Amount at year-end |
| Share premium | 2,634,786,308.86 | 136,158,171.77 | 12,493,667.73 | 2,758,450,812.90 |
| Other capital reserve | 48,043,091.40 | 48,043,091.40 | ||
| Total | 2,682,829,400.26 | 136,158,171.77 | 12,493,667.73 | 2,806,493,904.30 |
Note: Change of the share premium in the year mainly due to the buy-back of B-share 5,438.39 yuan inthe year; capital surplus of 872,219.17 yuan generated from the repurchase of minority’s interest ofGuangzhou Meiling in the year. Other changes in capital reserves this year are changes in capitalreserves of subsidiaries acquired by the associated enterprise Zhiyijia under the same control. Thecompany recognizes capital reserves of RMB 130,171.30 according to the shareholding ratio.
Note: The decrease of share capital premium this year is due to the B share repurchase fee of RMB
64.58 and the cancellation of stock shares of RMB 12,493,603.15; The increase this year is due to thedifference between the net assets share of Zhongke Meiling Cryogenics Co.,Ltd. calculated by theCompany according to the shareholding ratio before and after capital increase after the subsidiarycompany publicly issued shares to unspecified qualified investors in 2022.
43. Treasury stock
| Item | Balance at year-begin | Increase this year | Decrease this year | Balance at year-end |
| Repurchase of B shares | 26,430,571.38 | 737,197.77 | 27,167,769.15 | |
| Total | 26,430,571.38 | 737,197.77 | 27,167,769.15 |
Note: The Company held the 40
th
session of the 9
th
BOD, the 21
st
session of the 9
th
BOS, and the thirdextraordinary general meeting of shareholders in 2020 on July 27 and August 18, 2020, which reviewedand approved the Proposal on the Repurchase of Part of the Company's Domestically Listed ForeignShares (B Shares)", and agreed that the company would use its own funds to repurchase part of thecompany's domestically listed foreign shares (B shares) through centralized bidding transactions, andthe repurchased B shares would be cancelled in accordance with the law and the registered capital of
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
the company would be reduced accordingly. The total amount of the repurchase should be no less than50 million yuan (inclusive) and no more than 100 million yuan (inclusive), based on the central parityrate of Hong Kong Dollar against RMB on July 24, 2020: 1 HKD = 0.9023 yuan, equivalent to HongKong dollars of not less than HK$55,413,942.15 (inclusive) and not more than HK$110,827,884.30(inclusive). The specific total amount of repurchase funds should be subject to the total amount of fundsactually used for the repurchase of shares at the expiration of the repurchase period. The price ofrepurchasing B shares this time should not exceed HK$2.21/share (inclusive). After the implementationof the 2020 annual profit distribution plan, the upper limit of the price of repurchasing B shares wouldbe adjusted from HK$2.21/share (inclusive) to HK$2.15/share (inclusive). ).On August 24, 2021, the company held the 11
th session of the 10
thBOD, the directors of the companyunanimously agreed to the Proposal on Continuing Implementation and Partial Adjustment of theRepurchase of Some Domestically Listed Foreign Shares (B Shares) of the Company", continued toimplement the Plan on Repurchasing Part of the Company’s Domestically Listed Foreign Shares (BShares) approved by the previous shareholders' meeting of the company; at the same time, therepurchase period in the aforementioned plan was extended to February 18, 2022, that is, the repurchaseperiod was from August 18, 2020 to February 18, 2022; the repurchase price was adjusted from no morethan HK$2.15/share (inclusive) to no more than HK$2.36/share (inclusive) (not exceeding 150% of theaverage trading price of the company's stock in the first 30 trading days prior to the reviews and approvalof the 11th meeting of the tenth BOD); the 9,582,882 B shares repurchased in the previous period wouldbe cancelled after the expiration of extension of the repurchase period.By February 18, 2022, the Company had repurchased a total of 14,674,166 B shares, and on March2, 2022, the cancellation procedures for repurchasing 14,674,166 B shares were completed in ShenzhenBranch of China Securities Depository and Clearing Co., Ltd.
44. Other comprehensive income
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
| Item | Balance at year-begin | Current Year | Balance at year-end | ||||
| Account before income tax in Current Year | Less: written in other comprehensive income in previous period and carried forward to gains and losses in current period | Less：Income tax expenses | Belong to parent company after tax | Belong to minority shareholders after tax | |||
| Other comprehensive income re-divided into gains/losses | |||||||
| Conversion difference arising from foreign currency financial statement | -20,903,270.57 | 184,552.23 | 21,807.94 | 162,744.29 | -20,881,462.63 | ||
| Total | -20,903,270.57 | 184,552.23 | 21,807.94 | 162,744.29 | -20,881,462.63 | ||
45.Special reserves
| Item | Amount at year-begin | Increase this year | Decrease this year | Amount at year-end |
| Safety production costs | 2,467,205.78 | 2,467,205.78 | ||
| Total | 2,467,205.78 | 2,467,205.78 |
Note: This year's increase refers to the work safety expenses accrued according to the notice issuedby the Ministry of Finance on November 21, 2022 on printing and distributing the AdministrativeMeasures for the Extraction and Use of Work Safety Expenses of Enterprises (CZ [2022] No.136).
46. Surplus reserves
| Item | Amount at year-begin | Increase this year | Decrease this year | Amount at year-end |
| Statutory surplus reserve | 307,503,534.74 | 18,090,235.08 | 325,593,769.82 | |
| Discretionary surplus reserve | 115,607,702.16 | 115,607,702.16 | ||
| Total | 423,111,236.90 | 18,090,235.08 | 441,201,471.98 |
47. Retained profit
| Item | Current Year | Last Year |
| Prior year-end balance | 734,129,724.00 | 740,754,202.23 |
| Add: adjustment from undistributed profit at year-begin | ||
| Including: retroactive adjustment by Accounting Standards for Business Enterprise | ||
| change of accounting policy |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
| Item | Current Year | Last Year |
| Correction of former material error | ||
| Change of combination scope under common control | ||
| Balance at year-begin | 734,129,724.00 | 740,754,202.23 |
| Add: net profit attributable to shareholders of parent company for this year | 244,538,734.49 | 51,898,388.84 |
| Less: withdraw of statutory surplus reserve | 18,090,235.08 | 6,746,446.47 |
| withdraw of discretionary surplus reserve | ||
| Withdraw of general risk provision | ||
| Dividend payable for ordinary shares | 51,496,185.75 | 51,776,420.60 |
| Dividend of ordinary shares transferred to share capital | ||
| Balance at year-end | 909,082,037.66 | 734,129,724.00 |
48. Operation income and operation cost
(1) Operation income and operation cost
| Item | Current Year | Last Year | ||
| Income | Cost | Income | Cost | |
| Main business | 20,037,625,297.52 | 17,325,069,941.59 | 17,331,645,754.46 | 15,273,131,473.38 |
| Other business | 177,594,894.68 | 119,460,293.73 | 701,311,746.98 | 596,614,341.09 |
| Total | 20,215,220,192.20 | 17,444,530,235.32 | 18,032,957,501.44 | 15,869,745,814.47 |
(2) Main business classified according to product
| Product | Current Year | Last Year | ||
| Operation income | Operation cost | Operation income | Operation cost | |
| Refrigerator, freezer | 7,664,575,851.66 | 6,346,869,532.77 | 8,165,836,380.29 | 6,945,620,033.21 |
| Air-conditioner | 9,781,896,262.72 | 8,770,265,668.68 | 6,867,304,359.29 | 6,364,053,615.99 |
| Washing machine | 753,549,855.38 | 607,693,261.63 | 668,996,516.82 | 534,901,177.78 |
| Small household appliances and kitchen and bathroom | 1,605,989,880.27 | 1,408,047,190.15 | 1,330,315,557.62 | 1,154,251,783.53 |
| Other | 231,613,447.49 | 192,194,288.36 | 299,192,940.44 | 274,304,862.87 |
| Total | 20,037,625,297.52 | 17,325,069,941.59 | 17,331,645,754.46 | 15,273,131,473.38 |
(3) Main business classified according to sales region
| Region | Current Year | Last Year | ||
| Operation income | Operation cost | Operation income | Operation cost | |
| Domestic | 14,871,610,639.87 | 12,793,366,256.67 | 12,521,627,236.27 | 10,779,025,843.09 |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
| Region | Current Year | Last Year | ||
| Operation income | Operation cost | Operation income | Operation cost | |
| Overseas | 5,166,014,657.65 | 4,531,703,684.92 | 4,810,018,518.19 | 4,494,105,630.29 |
| Total | 20,037,625,297.52 | 17,325,069,941.59 | 17,331,645,754.46 | 15,273,131,473.38 |
Top five clients have income in sales of 11,790,336,957.70 yuan in total, a 58.32%% in totaloperation income.
(4)Statement of revenue deduction
1)Information related to the transaction price allocated to the remaining performance obligations
2)At the end of this year, the income corresponding to the performance obligations that have been signedbut not yet fulfilled or not yet fully fulfilled is RMB 1,110,868,412.56, of which RMB 1,042,631,257.30is expected to be recognized in 2023.
49. Business tax and extra charges
| Item | Current Year | Last Year |
| Treatment fund for abandon electrics & electronics | 71,372,020.99 | 44,423,770.00 |
| City construction tax | 19,846,779.61 | 19,468,269.04 |
| Extra charge for education and local education surcharge | 14,548,311.46 | 14,635,736.24 |
| Real estate tax | 20,864,349.97 | 20,177,953.31 |
| Stamp duty | 16,752,387.61 | 15,103,354.99 |
| Land use tax | 7,416,201.59 | 8,323,457.05 |
| Water fund | 7,714,862.00 | 6,923,860.11 |
| Other | 14,546.06 | 11,363.34 |
| Total | 158,529,459.29 | 129,067,764.08 |
50. Sales expense
| Item | Current Year | Last Year |
| Salary, extra charges and labor service expenses | 615,364,927.31 | 570,204,800.54 |
| Market support expenses | 286,466,250.64 | 305,176,382.00 |
| National three guarantees expense | 203,466,003.55 | 141,027,709.39 |
| Shipping and Installation expense | 120,722,067.28 | 119,830,405.37 |
| Storage lease expenses | 75,019,986.16 | 100,617,796.86 |
| Travelling expenses | 19,660,517.01 | 29,229,678.19 |
| Insurance | 14,913,058.66 | 12,506,597.90 |
| Business activity expenses | 14,837,137.30 | 17,319,526.22 |
| Vehicle expenses | 14,012,267.21 | 9,068,901.91 |
| Service | 10,978,315.77 | 16,850,832.61 |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
| Item | Current Year | Last Year |
| Depreciation expenses | 8,478,387.85 | 8,058,200.89 |
| Advertising expenses | 2,981,861.74 | 3,009,994.39 |
| House-lease expenses | 2,977,765.70 | 1,583,945.12 |
| Meeting organization expenses | 1,570,396.34 | 3,181,909.93 |
| Communication expenses | 852,388.41 | 943,777.71 |
| Other expenses | 36,573,660.54 | 26,029,945.72 |
| Total | 1,428,874,991.47 | 1,364,640,404.75 |
51. Administration expense
| Item | Current Year | Last Year |
| Salary and social insurance etc. | 226,027,033.59 | 212,452,104.33 |
| Depreciation | 22,139,475.42 | 23,489,510.10 |
| Amortized intangible assets | 18,097,815.58 | 18,074,719.94 |
| Property insurance | 7,095,645.48 | 5,264,916.64 |
| Water and electricity fee | 6,326,879.79 | 6,561,477.70 |
| Business activities fee | 4,538,295.97 | 5,277,048.90 |
| Board fees | 2,816,281.49 | 1,819,196.77 |
| Domestic travelling fee | 2,808,407.52 | 3,365,425.65 |
| Office fee | 1,589,370.87 | 1,954,323.86 |
| Inspection and authentication fee | 738,557.52 | 588,177.67 |
| Other expenses | 66,408,709.14 | 54,741,873.81 |
| Total | 358,586,472.37 | 333,588,775.37 |
52. R&D expenses
| Item | Current Year | Last Year |
| Salary and social insurance etc. | 237,572,628.90 | 169,613,060.06 |
| Amortized intangible assets | 126,373,792.68 | 123,668,238.26 |
| Trial fee of R&D | 72,478,568.76 | 41,894,900.89 |
| Technical development cost | 27,806,672.78 | 35,425,186.62 |
| Cost of mould | 26,976,366.44 | 9,335,908.93 |
| Depreciation | 19,226,603.19 | 17,122,874.36 |
| Inspection and authentication fee | 14,858,218.53 | 23,112,922.97 |
| Domestic travel expenses | 1,657,904.73 | 1,967,777.25 |
| Software royalty | 435,739.52 | 2,174,741.57 |
| Other expenses | 32,997,051.96 | 41,575,485.18 |
| Total | 560,383,547.49 | 465,891,096.09 |
53. Financial expenses
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
| Item | Current Year | Last Year |
| Interest expenditure | 30,470,512.88 | 71,229,760.29 |
| Less: Interest income | 159,034,499.30 | 140,024,813.71 |
| Add: exchange loss | 88,349,559.02 | 3,784,522.39 |
| Procedure charge expenditure | 12,041,091.12 | 19,062,243.58 |
| Discount expenditure | -29,168,764.27 | -12,454,495.35 |
| Interest expense on lease liability | 2,127,420.51 | |
| Total | -55,214,680.04 | -58,402,782.80 |
54. Other income
| Item | Current Period | Last Period |
| Immediate refund of VAT for software products | 15,709,711.47 | 9,172,445.35 |
| Demonstration factory construction for the intelligent manufacturing of intelligent air-conditioner | 7,518,987.36 | 6,892,405.03 |
| Award funds for supporting the development of China Sound Valley | 7,190,000.00 | |
| Enterprise listing reward | 7,000,000.00 | |
| Project settlement and operation policy funds | 6,500,000.00 | |
| High-quality development policy subsidies | 4,989,100.00 | |
| Stable job subsidies | 4,405,810.76 | |
| Export credit insurance subsidy | 3,415,565.07 | 2,344,865.00 |
| Advanced manufacturing development policy funds | 3,300,000.00 | |
| Changhong Meiling demolition compensation | 2,583,421.09 | 2,212,271.23 |
| Provincial foreign trade funds (key and brand markets, enterprise market development) | 2,500,000.00 | |
| New refrigerant production adaptability transformation project | 2,364,981.72 | 2,364,981.69 |
| Reward and subsidy for the national specialized and special new "little giant" enterprises | 2,000,000.00 | 1,000,000.00 |
| Policy subsidy funds for powerful manufacturing province | 2,000,000.00 | |
| Other sporadic projects | 1,834,567.71 | 3,495,382.00 |
| Special funds for industrial development | 1,530,000.00 | |
| VISA (Variable Frequency Integrated Smart Air Conditioning System) research and application | 1,409,302.32 | 1,409,302.32 |
| Hefei Industrial Development Policy Subsidy Fund for the first half year of 2018 | 1,250,000.00 | 1,250,000.00 |
| R&D and application of frequency conversion control MCU chips | 1,150,000.00 | |
| Changhong air conditioning production base relocation namely capacity expansion and upgrading project | 1,146,666.72 | 382,222.24 |
| Foreign Cooperation Center Funding for Environmental Protection | 1,031,509.06 | 773,631.80 |
| Subsidy for product testing fees | 1,000,000.00 | |
| Hefei Industrial Development Policy Subsidy Fund for the second half of 2019, | 894,275.00 | 894,275.00 |
| Intelligent white goods software platform and typical application R&D industrialization | 727,272.72 | 727,272.73 |
| Support for joint development of enterprises in the region | 716,000.00 |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
| Item | Current Period | Last Period |
| Special funds for port logistics | 715,750.00 | 1,144,395.00 |
| City-level subsidies for advanced manufacturing policies in the first half of 2022 | 689,300.00 | |
| Site container subsidies | 658,260.00 | |
| Key chips, modules and testing capacity building projects for inverters | 633,333.35 | |
| Provincial strong manufacturing policy funds, industrial strong base technology transformation equipment subsidies | 625,000.00 | 625,000.00 |
| Subsidies for intelligent transformation and upgrading of enterprises bynew industrialization policy in the Economic Development Zone | 605,675.00 | 605,675.00 |
| High-tech enterprise awards | 600,000.00 | |
| Individual tax handling fee refund | 595,125.97 | 333,648.78 |
| Patent Awards | 573,865.00 | 515,800.00 |
| A package of policy subsidies of Hefei City stabilizing the economy | 539,232.93 | |
| Subsidies for promoting technological transformation projects in 2020 | 535,925.00 | 178,641.67 |
| Subsidies for vocational training through work substitute training | 514,920.00 | |
| New plant construction government subsidy - low-temperature refrigeration equipment industrialization project | 500,000.00 | 500,000.00 |
| Science and technology innovation subsidies | 500,000.00 | |
| NEEQ innovation layer reward | 500,000.00 | |
| Subsidies for the capital project of trade services | 495,750.00 | |
| District-level subsidy funds by advanced manufacturing policies In the first half of 2021 | 479,643.75 | 373,056.25 |
| Hefei Industrial Development Policy Project Subsidy in the first half of 2020 | 434,600.00 | 434,600.00 |
| Market development funds | 426,001.00 | |
| Special funds for strategic emerging industries and high-end growing industries | 413,793.00 | 103,448.28 |
| Jiangxi Meiling demolition compensation | 404,839.96 | 1,779,888.60 |
| Anhui Province Three Importance's and one Innovation project funds allocation of 2020 | 325,000.00 | 230,208.34 |
| R&D grants | 308,200.00 | |
| Zhongshan Finance Bureau (CZ0280012019 provincial special funds) funding | 305,646.49 | 305,646.49 |
| Promotion of new chemical industry (annual output of 600,000 units of medium and large-volume environmental protection and energy-saving freezer project) | 304,412.52 | 304,412.52 |
| VAT refund | 301,135.59 | 2,095,773.00 |
| Civil-military integration insurance premium subsidy | 300,000.00 | 127,451.00 |
| Talent subsidies | 292,000.00 | 616,436.00 |
| Provincial promotion of air conditioning production line technology upgrade and transformation project | 284,759.38 | |
| Matters related to the promotion of foreign investment and cooperation | 280,949.43 | |
| E-Commerce Association Project Funding | 270,000.00 | |
| Technology insurance subsidies | 266,350.00 | 600,000.00 |
| Provincial policy subsidy funds for strong manufacturing province of 2021 | 261,964.29 | 1,523,750.00 |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
| Item | Current Period | Last Period |
| Special funds for business development in Zhongshan in 2022 | 240,388.00 | |
| Equipment subsidies for industrial strong base technology transformation projects by the Economic and Information Commission | 235,000.00 | 235,000.00 |
| Subsidies for instruments and equipment | 224,400.00 | 265,400.00 |
| Energy-saving room air conditioner promotion project | 210,309.24 | 210,309.28 |
| Industry matching funds for supporting the innovation and development of the artificial intelligence in 2020 | 208,928.58 | 162,500.00 |
| Provincial enterprise technology center awards | 200,000.00 | |
| Product International certification subsidies | 200,000.00 | |
| Excellent enterprise award funds | 200,000.00 | |
| Mianyang Meiling smart refrigerator production line upgrade project | 197,499.96 | 197,499.96 |
| Special fund for Zhongshan technological transformation | 192,356.76 | |
| Subsidies for the purchase of R&D instruments and equipment | 182,112.52 | 182,112.52 |
| Equipment purchase subsidies for Hefei technological transformation projects of 2017 | 179,160.00 | 179,160.00 |
| Municipal Award for Advanced Manufacturing Policy in the first half of 2020 | 166,780.89 | 746,125.00 |
| Hefei Standardization Policy Award | 160,000.00 | 290,000.00 |
| Standardization project award | 160,000.00 | |
| Special funds for intellectual property | 109,250.00 | 500,000.00 |
| Special funds for technological transformation | 103,809.60 | 103,809.60 |
| Top 10 tax-paying enterprises incentive funds | 100,000.00 | |
| Provincial circulation industry funds - market entities and commercial brand cultivation of 2022 | 100,000.00 | |
| Special funds for industrial development in Zhongshan City of 2018 | 77,992.32 | 171,858.05 |
| Technical transformation of the Athena project | 869,687.50 | |
| Industrial Development Policy Subsidy Funds | 27,000,000.00 | |
| Foreign economic and trade development funds of 2021 | 4,312,000.00 | |
| Foreign trade promotion policy funding of 2020 | 2,746,604.00 | |
| Provincial industrial development special project funds of 2021 | 2,200,000.00 | |
| Subsidies for special dual-innovation carrier projects | 2,000,000.00 | |
| Settlement government subsidies | 1,500,000.00 | |
| The first batch of provincial industrial development special fund subsidies in 2021 | 1,490,000.00 | |
| Award for supporting the development of China Sound Valley in 2021 | 1,395,000.00 | |
| Industrialization Policy Award Supplement Fund in the Economic Development Zone of 2019 | 1,140,400.00 | |
| The second batch of funds to support the construction project of China Sound Valley in 2020 | 1,044,200.00 | |
| Product testing fee subsidies in 2020 | 1,000,000.00 | |
| Hefei smart home appliance (home) technology award in 2020 | 1,000,000.00 | |
| Industrial Internet Policy Award of 2021 | 1,000,000.00 |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
| Item | Current Period | Last Period |
| Incentives for major special projects in science and technology | 1,000,000.00 | |
| "Double top-100" corporate rewards | 1,000,000.00 | |
| Special funds for the construction of innovation capabilities and industrial upgrading platforms | 900,000.00 | |
| Revitalizing idle plant subsidies | 843,732.00 | |
| Modern service industry development policy funds | 714,500.00 | |
| 2020Innovative development funding to undertake industrial transfer to promote processing trade innovation and development | 652,039.00 | |
| Skills upgrading training programs | 600,000.00 | |
| Three Importance's and one Innovation project funds of 2021 | 500,000.00 | |
| Artificial intelligence project grants | 414,000.00 | |
| Land use tax refund in the 4th quarter of 2020 | 400,534.76 | |
| The first batch of high science and technology innovation enterprise awards in 2020 | 400,000.00 | |
| Property tax refund in the 4th quarter of 2020 | 373,459.10 | |
| Special award for energy conservation and ecological construction of 2021 | 347,600.00 | |
| Project of increasing the incentive for enterprises with outstanding contributions to stabilizing foreign trade by Zhongshan City | 300,000.00 | |
| District-level industrial policy, science and technology innovation policy in 2019 | 300,000.00 | |
| Overseas investment insurance subsidies | 290,171.00 | |
| Subsidies for scientific and technological innovation projects | 281,000.00 | |
| Technological transformation financial incremental contribution incentive policy awards of 2021 | 259,100.00 | |
| Special funds for industrial development in Zhongshan City of 2021 | 250,000.00 | |
| Policy supporting the separation of main business and auxiliary business | 249,845.00 | |
| "Innovation and entrepreneurship team at the start-up stage" award | 200,000.00 | |
| Provincial service-oriented manufacturing demonstration enterprise award | 200,000.00 | |
| Anhui Province manufacturing high-end brand cultivation enterprise project subsidy | 200,000.00 | |
| Subsidies for industrialization projects of design achievements | 200,000.00 | |
| Annual excellent enterprise award funds in 2020 | 200,000.00 | |
| Several support policy incentives for high-quality development in 2020 | 170,000.00 | |
| Special funds for port logistics in 2020 | 135,660.00 | |
| Support of the linkage development of the industry of 2020 | 128,100.00 | |
| Outstanding Contribution Award for Enterprises to Promote High-quality Development | 120,000.00 | |
| Science and technology innovation policy award in the Economic Development Zone of 2020 | 104,000.00 | |
| Total | 102,556,591.53 | 108,992,292.09 |
55. Investment income
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
| Item | Current Year | Last Year |
| Long-term equity investment income by equity method | 20,440,095.97 | 12,422,382.59 |
| Investment income obtained from disposal of tradable financial assets | 6,873,207.97 | 95,088,495.95 |
| Income from financial products | 5,066,526.99 | 13,856,905.10 |
| Investment income of other non-current financial assets during holding period | -24,385,552.13 | |
| The termination of income recognition for financial assets measured by amortized cost | 14,763,930.55 | |
| Interest income from debt investment during the holding period | 10,260,629.45 | 7,596,184.95 |
| Total | 33,018,838.80 | 128,963,968.59 |
56. Changes in fair value gains
| Item | Current Period | Last Period |
| Trading financial assets | 39,663,502.48 | -29,245,252.88 |
| Including :Income of fair value changes from derivative financial instruments | 39,663,502.48 | -29,245,252.88 |
| Trading financial liability | -29,657,252.37 | -7,720,195.90 |
| Including: Income of fair value changes from derivative financial instruments | -29,657,252.37 | -7,720,195.90 |
| Other non-current financial assets | 14,131,251.16 | 33,831,509.36 |
| Total | 24,137,501.27 | -3,133,939.42 |
57. Credit impairment loss
| Item | Current Year | Last Year |
| Note receivable bad debt loss | 8,481,942.30 | |
| Account receivable bad debt loss | -162,588,905.74 | -29,230,616.84 |
| Other account receivable bad debt loss | -1,857,860.25 | -235,222.39 |
| Total | -164,446,765.99 | -20,983,896.93 |
58. Assets impairment loss
| Item | Current Year | Last Year |
| Loss on inventory valuation | -37,286,366.52 | -49,526,210.35 |
| Impairment loss on intangible assets | -17,091,365.68 | -7,957,831.68 |
| Impairment loss on fixed assets | -1,347,703.96 | |
| Impairment loss on contractual assets | -770,687.90 | |
| Total | -56,496,124.06 | -57,484,042.03 |
59. Income from assets disposal
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
| Item | Current Period | Last Period | Amount reckoned into non-recurring gains/losses in Current Period |
| Income from non-current assets disposal | 27,602,023.18 | -133,214.72 | 27,602,023.18 |
| Including: income classify to assets ready for sale | |||
| income not classify as to assets ready for sale | 27,602,023.18 | -133,214.72 | 27,602,023.18 |
| Including: Income from fixed assets disposal | 15,371,880.61 | -133,214.72 | 15,371,880.61 |
| Income from intangible assets disposal | 12,230,142.57 | 12,230,142.57 | |
| Total | 27,602,023.18 | -133,214.72 | 27,602,023.18 |
60. Non-operation revenue
| Item | Current Period | Last Period | Amount reckoned into non-recurring gains/losses in Current Period |
| Income of penalty | 1,731,499.87 | 1,258,456.10 | 1,731,499.87 |
| other | 7,517,843.40 | 8,763,597.78 | 7,517,843.40 |
| Total | 9,249,343.27 | 10,022,053.88 | 9,249,343.27 |
61. Non-operating expenditure
| Item | Current Period | Last Period | Amount reckoned into non-recurring gains/losses in Current Period |
| Non-current asset retirement losses | 1,467,133.15 | 1,524,444.23 | 1,467,133.15 |
| Public welfare donation expenditure | 1,611,780.39 | 11,000.00 | 1,611,780.39 |
| Penalty and late fee | 724,538.98 | 604,687.12 | 724,538.98 |
| Other | 4,684,312.46 | 3,013,937.15 | 4,684,312.46 |
| Total | 8,487,764.98 | 5,154,068.50 | 8,487,764.98 |
62. Income tax expenses
| Item | Current Year | Last Year |
| Current income tax | 15,647,487.73 | 23,630,449.16 |
| Deferred income Tax | -6,082,140.92 | -21,207,520.22 |
| Total | 9,565,346.81 | 2,422,928.94 |
63. Other comprehensive income
Found more in 44. Other comprehensive income in VI
64. Items of cash flow statement
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
(1) Cash received (paid) from (for) other activities relating to operation/investment/financing
1) Cash received from other activities relating to operation
| Item | Current Year | Last Year |
| Collection of restriction fund | 80,505,851.57 | 93,302,596.49 |
| Government subsidy and rewards | 72,305,923.02 | 100,949,021.63 |
| Cash deposit, deposit | 28,044,590.50 | 31,184,841.18 |
| Receive compensation | 21,715,660.93 | 1,271,453.02 |
| Rental income | 6,448,934.35 | 5,605,416.80 |
| Petty cash collection | 131,377.98 | 711,008.91 |
| Other | 9,771,194.92 | 10,524,796.11 |
| Total | 218,923,533.27 | 243,549,134.14 |
2) Cash paid for other activities relating to operation
| Item | Current Year | Last Year |
| Market expenses | 181,077,783.11 | 222,791,063.19 |
| Rental fee | 101,343,065.67 | 120,806,416.80 |
| Petty cash, deposit, Cash deposit | 52,116,545.02 | 60,780,516.64 |
| Travel expenses, meeting fees and exhibition fees | 38,171,566.47 | 26,209,006.41 |
| Travel expenses, meeting fees and exhibition fees | 30,518,119.56 | 44,379,229.38 |
| Inspection and certification fee, certification charge and reviewing fee | 25,562,940.30 | 35,467,610.78 |
| Repair fee | 23,408,378.38 | 22,676,804.70 |
| Business activity fee | 19,716,863.80 | 17,242,092.12 |
| Transportation and vehicle costs | 16,317,717.23 | 17,397,441.98 |
| Service | 15,965,228.52 | 41,594,786.19 |
| Handling fee | 9,271,570.17 | 14,499,999.53 |
| Office expenses | 7,864,762.36 | 8,072,340.01 |
| Advertising fee | 6,728,842.18 | 5,344,491.93 |
| Communication costs | 2,861,966.67 | 3,420,542.01 |
| Labor fee | 1,592,513.58 | 1,856,562.73 |
| Board expenses | 1,244,705.27 | 2,006,972.68 |
| Convert to restricted funds | 20,079,453.92 | |
| Other expenses | 122,093,195.45 | 143,929,062.93 |
| Total | 655,855,763.74 | 808,554,393.93 |
3) Cash received from other activities relating to investment
| Item | Current Period | Last Period |
| Interest income arising from bank savings | 161,501,486.59 | 137,430,181.38 |
| Cash deposit | 391,416.52 | 867,288.00 |
| Income of forward exchange settlement | 20,632.41 | 112,471,926.55 |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
| Other | 525,518.72 | |
| Total | 161,913,535.52 | 251,294,914.65 |
4) Cash paid for other activities relating to investment
| Item | Current Period | Last Period |
| Loses of forward exchange settlement | 135,747,164.72 | 66,334.39 |
| Bid bond refund | 2,000.00 | |
| Total | 135,747,164.72 | 68,334.39 |
5) Cash received from other activities relating to financing
| Item | Current Year | Last Year |
| Meiling series (internal) bill discounting fundraising | 23,536,567.33 | 14,136,579.91 |
| Total | 23,536,567.33 | 14,136,579.91 |
6) Cash paid for other activities relating to financing
| Item | Current Year | Last Year |
| Turn into limited funds | 713,173,457.92 | |
| Distribusigned to shareholders at the time of cancellation | 22,652,073.83 | |
| Meiling series (internal) bill discounting fundraising | 14,747,852.83 | 216,853.94 |
| Lease liability principal and interest | 13,924,674.35 | 10,862,303.71 |
| Service fees of financing intermediary agencies | 5,205,286.50 | |
| Payment for B share repurchase | 737,262.35 | 16,506,673.59 |
| Financing lease | 175,323.88 | 701,295.52 |
| Intermediary service fee | 36,327.91 | 36,415.52 |
| Total | 770,652,259.57 | 28,323,542.28 |
(2) Supplementary of the consolidated cash flow statement
| Item | Current Period | Last Period |
| 1. Net profit is adjusted to cash flow of operation activities: | ||
| Net profit | 277,098,462.51 | 87,092,653.50 |
| Add: provision for depreciation of assets | 176,173,704.39 | -9,614,635.07 |
| Depreciation of fixed assets, consumption of oil gas assets and depreciation of productive biological assets | 223,767,338.55 | 221,606,094.74 |
| Amortization of intangible assets | 151,246,185.43 | 147,281,829.24 |
| Depreciation of right-of-use assets | 12,973,556.19 | 8,703,287.66 |
| Loss from disposal of fixed assets, intangible assets and other long term assets (gain is listed with “-”) | -27,602,023.18 | 133,214.72 |
| Loss from discarding fixed assets as useless (gain is listed with “-”) | 1,001,047.96 | 828,934.22 |
| Loss from change of fair value (gain is listed with “-”) | -24,137,501.27 | 3,133,939.42 |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
| Item | Current Period | Last Period |
| Financial expense (gain is listed with “-”) | -38,087,006.89 | -65,010,531.03 |
| Investment loss (gain is listed with “-”) | -33,018,838.80 | -128,963,968.59 |
| Decrease of deferred income tax assets (increase is listed with “-”) | -9,142,184.15 | -20,302,373.34 |
| Increase of deferred income tax liabilities (decrease is listed with “-”) | 3,080,311.85 | -905,146.88 |
| Decrease of inventories (increase is listed with “-”) | -347,146,382.60 | 384,573,713.19 |
| Decrease of operational accounts receivable (increase is listed with “-”) | 343,604,791.45 | -56,907,214.37 |
| Increase of operational accounts receivable (decrease is listed with “-”) | 674,838,435.05 | -481,355,049.55 |
| Other | 80,505,851.57 | 70,628,510.24 |
| Net cash flow arising from operation activities | 1,465,155,748.06 | 160,923,258.10 |
| 2. Major investment and financing activities that do not involve cash receipts: | ||
| Conversion of debt into capital | ||
| Switching Company bonds due within one year | ||
| financing lease of fixed assets | ||
| 3. Net change in cash and cash equivalents: | ||
| Balance at period-end of cash | 6,113,222,069.76 | 5,840,194,931.57 |
| Less: Opening balance of cash | 5,840,194,931.57 | 6,425,529,815.10 |
| Add: Balance at period-end of cash equivalents | ||
| Less: Opening balance of cash equivalents | ||
| Net increase in cash and cash equivalents | 273,027,138.19 | -585,334,883.53 |
(3) No net cash paid for subsidiary obtained in Current Period
(4) No net cash received from subsidiary disposal in Current Period
(5) Cash and cash equivalent
| Item | Balance at year-end | Balance at year-begin |
| Cash | 6,113,222,069.76 | 5,840,194,931.57 |
| Including: cash in stock | 21,243.42 | 28,447.21 |
| Bank deposits available for payment at any time. | 6,113,166,932.47 | 5,121,110,089.59 |
| Other monetary fund available for payment at any time | 33,893.87 | 719,056,394.77 |
| Cash equivalents | ||
| Including: bond investment due within 3 months | ||
| Balance of cash and cash equivalents at year-end | 6,113,222,069.76 | 5,840,194,931.57 |
| Including: using the restricted cash and cash equivalents of the parent company or subsidiary of the group |
65. Assets with ownership or the right to use restricted
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
| Item | Ending book value | Reasons |
| Monetary fund | 718,777,132.92 | Cash deposit, Frozen funds |
| Receivables financingnote1 | 405,400,483.49 | Pledged |
| Investment real estate note2 | 3,278,221.44 | Mortgage |
| Fixed assetsnote2 | 335,613,742.86 | Mortgage |
| Intangible assets note2 | 272,690,841.98 | Mortgage |
| Total | 1,735,760,422.69 |
Note 1: The note receivable listed in receivables financing was pledged for: short-term financing fromthe bank; with purpose of improving the note utilization, the Company draw up bank acceptance bypledge parts of the outstanding notes receivable to the bankNote 2: The mortgage of investment real estate, fixed assets, and intangible assets is the mortgage ofhouses and buildings and land use rights. For details, please refer to Note VI. 35. Long-term loans.
66. Foreign currency
(1) Foreign currency
| Item | Ending foreign currency balance | Exchange rate | Ending RMB converted balance |
| Monetary fund | 159,129,376.13 | ||
| Including: USD | 15,596,095.78 | 6.9646 | 108,620,568.67 |
| Euro | 900,423.97 | 7.4229 | 6,683,757.09 |
| HKD | 3,297.90 | 0.8933 | 2,946.01 |
| GBP | 8.79 | 8.3941 | 73.78 |
| PKR | 184,531,856.29 | 0.0307 | 5,665,127.99 |
| IDR | 7,778,858,726.00 | 0.000445 | 3,461,592.13 |
| AUD | 6,437,891.01 | 4.7138 | 30,346,930.64 |
| PHP | 10,585,469.75 | 0.1250 | 1,323,183.72 |
| Won | 547,745,085.00 | 0.005523 | 3,025,196.10 |
| Account receivable | 867,401,278.08 | ||
| Including: USD | 99,611,587.03 | 6.9646 | 693,754,859.03 |
| Euro | 2,105,898.55 | 7.4229 | 15,631,874.35 |
| GBP | 96,148.87 | 8.3941 | 807,083.23 |
| PKR | 823,550,854.20 | 0.0307 | 25,283,011.22 |
| IDR | 41,070,294,838.31 | 0.000445 | 18,276,281.20 |
| AUD | 16,372,654.50 | 4.7138 | 77,177,418.78 |
| PHP | 17,098,040.24 | 0.1250 | 2,137,255.03 |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
| Item | Ending foreign currency balance | Exchange rate | Ending RMB converted balance |
| Won | 6,216,457,585.00 | 0.005523 | 34,333,495.24 |
| Other account receivable | 457,072.73 | ||
| Including: PKR | 10,401,391.89 | 0.0307 | 319,322.73 |
| IDR | 75,000,000.00 | 0.000445 | 33,375.00 |
| PHP | 835,000.00 | 0.1250 | 104,375.00 |
| Account payable | 22,076,413.65 | ||
| Including: USD | 10,463.31 | 6.9646 | 72,872.77 |
| Euro | 13,419.32 | 7.4229 | 99,610.27 |
| PKR | 509,188,676.80 | 0.0307 | 15,632,092.38 |
| IDR | 910,164,284.48 | 0.000445 | 405,023.11 |
| PHP | 46,934,520.96 | 0.1250 | 5,866,815.12 |
| Other account payable | 15,850,469.79 | ||
| Including: USD | 21,827.00 | 6.9646 | 152,016.32 |
| PKR | 332,806,189.87 | 0.0307 | 10,217,150.03 |
| IDR | 11,668,091,101.12 | 0.000445 | 5,192,300.54 |
| PHP | 2,312,023.20 | 0.1250 | 289,002.90 |
(2) Foreign operational entity
The foreign operational entity of the Company was Changhong Ruba Trading Company (Private)Limited, mainly operates in Lahore, Pakistan; Recording currency is Pakistan Rupi. CHANGHONGMEILING ELECTRIC INDONESIA, PT, mainly operates in Jakarta; recording currency is IDR. CH-Meiling International (Philippines) Inc, mainly operates in Philippines; Recording currency is PHP.
67. Hedging
The Company adopts forward foreign exchange contracts to hedge the risk of exchange rate fluctuations.The Company designates the purchased forward foreign exchange contracts as hedging instruments, andmanages them in accordance with the hedge accounting method, and evaluates the hedged items ofunrecognized asset and liability items, such as unrecognized definite commitments, on the balance sheetdate. The Company adopts the ratio analysis method to evaluate the hedging effectiveness.Hedging instrument is as follows:
| Items | Carrying value of the hedging instrument on December 31, 2022 | Items of balance sheet present include the hedging instruments |
| Fair value hedges | ||
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
| Exchange rate risk - forward foreign exchange contracts | 57,660,588.67 | Trading financial assets |
| Exchange rate risk - forward foreign exchange contracts | 41,961,524.78 | Trading financial assets |
68.Government subsidy
| Item | Amount | Item | Amount reckoned into current gain/loss |
| VAT refund on software products | 15,709,711.47 | Other income | 15,709,711.47 |
| Urban subsidy for advanced manufacturing policies in the first half of 2022 | 11,028,800.00 | Other income | 689,300.00 |
| Award funds for supporting the development of China Sound Valley | 7,190,000.00 | Other income | 7,190,000.00 |
| Enterprise Listing Reward | 7,000,000.00 | Other income | 7,000,000.00 |
| Project settlement and operation policy funds | 6,500,000.00 | Other income | 6,500,000.00 |
| High-quality development policy subsidies | 4,989,100.00 | Other income | 4,989,100.00 |
| Stable job subsidies | 4,405,810.76 | Other income | 4,405,810.76 |
| Export credit insurance subsidy | 3,415,565.07 | Other income | 3,415,565.07 |
| Advanced manufacturing development policy funds | 3,300,000.00 | Other income | 3,300,000.00 |
| Provincial foreign trade funds (market development of key and brand market enterprises) | 2,500,000.00 | Other income | 2,500,000.00 |
| Reward and subsidize national specialization and new "little giant" enterprises | 2,000,000.00 | Other income | 2,000,000.00 |
| Manufacturing strong provincial policy subsidy funds | 2,000,000.00 | Other income | 2,000,000.00 |
| 2021 district-level high-quality development policy (second batch) reward funds | 1,791,700.00 | Deferred income | |
| Special funds for industrial development | 1,530,000.00 | Other income | 1,530,000.00 |
| Provincial-level technical transformation project to promote air-conditioning production line upgrade | 1,385,600.00 | Deferred income | 284,759.38 |
| Other sporadic items | 1,363,142.63 | Other income | 1,363,142.63 |
| Product testing fee subsidy | 1,000,000.00 | Other income | 1,000,000.00 |
| Support the joint development of enterprises in the region | 716,000.00 | Other income | 716,000.00 |
| Special funds for port logistics | 715,750.00 | Other income | 715,750.00 |
| Site container subsidy | 658,260.00 | Other income | 658,260.00 |
| High-tech Enterprise Award | 600,000.00 | Other income | 600,000.00 |
| Refund of individual tax handling fee | 595,125.97 | Other income | 595,125.97 |
| Patent Award | 573,865.00 | Other income | 573,865.00 |
| Hefei City stabilizes the economy with a package of policy subsidies | 539,232.93 | Other income | 539,232.93 |
| Vocational training subsidy | 514,920.00 | Other income | 514,920.00 |
| Science and technology innovation subsidy | 500,000.00 | Other income | 500,000.00 |
| New third board innovation layer reward | 500,000.00 | Other income | 500,000.00 |
| Service Trade Fund Project Subsidy | 495,750.00 | Other income | 495,750.00 |
| market development funds | 426,001.00 | Other income | 426,001.00 |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
| Item | Amount | Item | Amount reckoned into current gain/loss |
| R & D subsidies | 308,200.00 | Other income | 308,200.00 |
| VAT refund | 301,135.59 | Other income | 301,135.59 |
| Military-civilian integration insurance premium subsidy | 300,000.00 | Other income | 300,000.00 |
| Talent subsidy | 292,000.00 | Other income | 292,000.00 |
| Promotion of foreign investment and cooperation | 280,949.43 | Other income | 280,949.43 |
| E-Commerce Association Project Funding | 270,000.00 | Other income | 270,000.00 |
| Technology Insurance Subsidy | 266,350.00 | Other income | 266,350.00 |
| 2022 special fund for business development in Zhongshan City | 240,388.00 | Other income | 240,388.00 |
| Instrument and equipment subsidy | 224,400.00 | Other income | 224,400.00 |
| Provincial Enterprise Technology Center Award | 200,000.00 | Other income | 200,000.00 |
| Product international certification subsidy | 200,000.00 | Other income | 200,000.00 |
| Outstanding Enterprise Award Fund | 200,000.00 | Other income | 200,000.00 |
| Zhongshan Special Fund for Technical Transformation | 192,356.76 | Other income | 192,356.76 |
| Hefei Standardization Policy Rewards | 160,000.00 | Other income | 160,000.00 |
| Standardization project awards | 160,000.00 | Other income | 160,000.00 |
| Intellectual Property Special Fund | 109,250.00 | Other income | 109,250.00 |
| Incentive funds for the top ten taxpayers | 100,000.00 | Other income | 100,000.00 |
| 2022 provincial circulation industry funds - market players and commercial brand cultivation | 100,000.00 | Other income | 100,000.00 |
| Policy subsidies for advanced manufacturing in the second half of 2021 | 57,100.00 | Deferred income | 5,947.93 |
| Total | 87,906,464.61 | 74,623,271.92 |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
VII. Changes of consolidation rage
1. Enterprise combined under the different control: nil
2. Enterprise combined under the same control: nil
3. Reversed takeover: nil
4. Disposal of subsidiary: nil
5. Subsidiary liquidated
| Subsidiary | Equity disposal price | Share disposal ratio （%） | Equity disposal method | Point o at which the control is lost | Basis for determining the point at which the control is lost | Difference between the disposal price and the share of net assets of the subsidiary at the consolidate financial statement corresponding to the disposal of the investment | Amount of investment gain/loss transferred from other comprehensive income that related to equity investment of original subsidiary |
| Jinan Xiangyou Electric Appliances Marketing Co., Ltd | 93.4 | Liquidation & cancellation | February 2022 | Completed the liquidation & cancellation | |||
| Meiling Kadi Washing Machine Co., Ltd | 56,630,183.58 | 60.00 | Liquidation & cancellation | June 2022 | Completed the liquidation & cancellation |
6. Subsidiary newly established: nil
7. Subsidiary merger by absorption
| Name of company | Equity ratio before absorption (%) | Time for absorption |
| Zhengzhou Meiling Electric Appliances Marketing Co., Ltd | 100 | March 2022 |
In March 2022, consolidation by merger, Hefei Meiling Group Holdings Limited purchased 100% equityof Zhengzhou Meiling Electric Appliances Marketing Co., Ltd (hereinafter referred to as ZhengzhouMeiling) from Hefei Meiling Electric Appliances Marketing Co., Ltd. As of 31 December 2022, theindustrial & commercial and tax cancellation under the name of Zhengzhou Meiling has not beencompleted.VIII. Equity in other entity
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
1. Equity in subsidiary
(1) Composition of the enterprise group
| Subsidiary | Main office place | Registration place | Business nature | Shareholding ratio（%) | Acquire by | |
| Directly | Indirectly | |||||
| Zhongke Meiling Cryogenic Technology Co., Ltd1) | Hefei | Hefei | Manufacturing and sales | 47.4512 | Investment establishment | |
| Sichuan Hongmei Intelligent Technology Co., Ltd.2) | Mianyang | Mianyang | Software development | 100 | Investment establishment | |
| Mianyang Meiling Refrigeration Co., Ltd.3) | Mianyang | Mianyang | Manufacturing and sales | 95 | 5 | Investment establishment |
| Jiangxi Meiling Electric Appliance Co., Ltd. 4) | Jingdezhen | Jingdezhen | Manufacturing and sales | 98.75 | 1.25 | Investment establishment |
| Hefei Meiling Wulian Technology Co., Ltd5） | Hefei | Hefei | Software development | 100 | Investment establishment | |
| Hefei Meiling Electric Appliances Marketing Co., Ltd6) | Hefei | Hefei | Sales | 99.82 | 0.18 | Investment establishment |
| Wuhan Meizhirong Electric Appliances Marketing Co., Ltd7) | Wuhan | Wuhan | Sales | 92 | Investment establishment | |
| Hefei Meiling Nonferrous Metal Products Co., Ltd.8) | Hefei | Hefei | Manufacturing and sales | 100 | Enterprise combined not under the same control | |
| Changhong Meiling Ridian Technology Co., Ltd.9） | Zhongshan | Zhongshan | Manufacturing and sales | 99.0361 | Enterprise combined under the same control | |
| CHANGHONG MEILING ELECTRIC INDONESIA,PT 10） | Jakapta | Jakapta | Sales | 100 | Investment establishment | |
| ChanghongRubaTradingCompany（Private）Limited 11) | Pakistan | Pakistan | Sales | 60 | Investment establishment | |
| Sichuan Changhong Air-conditioner Co., Ltd12) | Mianyang | Mianyang | Manufacturing and sales | 100 | Enterprise combined under the same control | |
| Zhongshan Changhong Electric Co., Ltd13) | Zhongshan | Zhongshan | Manufacturing and sales | 90 | 10 | Enterprise combined under the same control |
| Hefei Meiling Group Holdings Limited14) | Hefei | Hefei | Manufacturing and sales | 100 | Enterprise combined not under the same control | |
| Meiling Equator Household Appliance (Hefei) Co., Ltd.15) | Hefei | Hefei | Manufacturing and sales | 100 | Enterprise combined not under the same control | |
| Hefei Equator Appliance Co., Ltd16) | Hefei | Hefei | Manufacturing and sales | 100 | Enterprise combined not under the same control | |
| Ground Energy Heat Pump Tech. Co., Ltd.17) | Mianyang | Mianyang | Manufacturing and sales | 51 | Investment establishment | |
| Ground Energy Heat Pump Tech. (Zhongshan) Co., Ltd. 18) | Zhongshan | Zhongshan | Manufacturing and sales | 51 | Investment establishment | |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
| Subsidiary | Main office place | Registration place | Business nature | Shareholding ratio（%) | Acquire by | |
| Directly | Indirectly | |||||
| Guangzhou Changhong Trading Co., Ltd.20） | Guangzhou | Guangzhou | Sales | 100 | Investment establishment | |
| Guangzhou Changhong Trading Co., Ltd.20） | Guangzhou | Guangzhou | Sales | 99.0361 | Investment establishment | |
| Anhui Tuoxing Technology Co., Ltd.22） | Hefei | Hefei | Manufacturing and sales | 47.45 | Investment establishment | |
| CH-Meiling.International (Philippines) Inc.22） | Philippines | Philippines | Sales | 100 | Investment establishment | |
| Hefei Changhong Meiling Life Appliances Co., Ltd. 24） | Hefei | Hefei | Sales | 70.00 | Investment establishment | |
| Anhui Ling'an Medical Equipment Co., Ltd 25） | Lu'an | Lu'an | Manufacturing and sales | 47.45 | Investment establishment | |
Note：
1) Zhongke Meiling Cryogenic Technology Co., Ltd. (hereinafter referred to as Zhongke Meiling), thepredecessor of which was Zhongke Meiling Cryogenic Technology Limited Liability Company, was establishedon 29 October 2002 by joint contribution from the Company and Technical Institute of Physics and Chemistry,CAS (“TIPC”), with registered capital of 60 million yuan upon the establishment, among which, the Companymade capital contribution of 42 million yuan (including the assets in specie at the consideration of35,573,719.70yuan as evaluated by Beijing Zhongzheng Appraisal Co., Ltd. with issuance of the Appraisal Report(ZZPBZ(2002)No.029) and cash contribution of 6,426,280.30 yuan) accounting for 70% of the aforesaidregistered capital, and TIPC made capital contribution of 18 million yuan with intangible assets of such value(namely the single compressor mixture industrial low temperature refrigeration technology) as evaluated byJingzhongzi Assets Appraisal Co., Ltd. with issuance of the Appraisal Report (ZZPBZ(2002)No.225) accountingfor 30% of the aforesaid registered capital. The paid-in of the above registered capital has been verified byHuazheng Accounting Firm by issuance of the Assets Verification Report (HZYZ (2002) No. B157) dated 16October 2002.In October 2014, according to the relevant provision under the Management Rules on Application of StateOwned Assets by Central Business Organs, TIPC transferred the 30% equity interests held by it in ZhongkeMeiling Cryogenic Technology Company Limited to its wholly-owned subsidiary Zhongke Xianxing (Beijing)Assets Management Co., Ltd (hereinafter referred to as Zhongke Xianxing) which would perform managementover the operating assets of TIPC. Upon consideration and approval at the 37
th
session of the 7
th
BOD of HefeiMeiling Co., Ltd, it is agreed to waive the pre-emptive right.On 10 August 2015, all the founders signed the Founder Agreement of Zhongke Meiling Cryogenic TechnologyCompany Limited, pursuant to which, they decided to change the firm type of Zhongke Meiling CryogenicTechnology Company Limited to a joint stock company. Based on the net assets of 96, 431,978.25 yuan asaudited by Xinyong Zhonghe CPA as of 30 June 2015, an aggregate of 65,000,000 shares have been convertedat the proportion of 1:0.67, which are to be held by the original shareholders according to their respectiveentitlement. In case that the net assets exceed registered capital, the balance shall be recorded in capital reserve.
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
On 28 August 2015, Xinyong Zhonghe CPA reviewed the registered capital and paid-in thereof in respect of thestock reform, and issued Assets Verification Report (XYZH/2015CDA40161). The Company registeredindustrial and commercial information on 11 September 2015.On November 25, 2016, the first Extraordinary Shareholders' General Meeting of Zhongke Meiling CryogenicTechnology Co., Ltd. in 2016 considered and approved the Proposal on the Issuance Plan of the Company;Zhongke Meiling Company issued 3,150,000 shares to specific investors by the non-public offering of shares at
1.63 yuan per share. The current capital increase was verified by the No.［XYZH/2016CDA40294］capitalverification report issued by ShineWing CPA (special general partnership). After the completion of the issuance,the share capital of Zhongke Meiling Company increased to 68,150,000 shares and the Company's shareholdingratio was 66.76%.On 15 September 2017, the Proposal of the First Stock Placement of Zhongke Meiling Cryogenic TechnologyCo., Ltd for year of 2017 was deliberated and approved by 4
th
session extraordinary of shareholders generalmeeting of 2017. Zhongke Meiling offering 490,300 shares to specific investors by way of privately placement,which has 1.72 yuan per share in amount. The capital increasement has been verified by the No.［XYZH/2017CDA40324］capital verification report issued by ShineWing CPA (special general partnership).After the completion of shares placement, stock of the Company increased to 68,640,300 shares and 66.87%held by the Company.On September 9, 2019, the 10
th Meeting of the 2
nd
BOD and the Fourth Extraordinary Shareholders’ Meetingreviewed and approved the Proposal on the First Stock Issuance Plan of Zhongke Meiling Cryogenic TechnologyCo., Ltd. in 2019 (Revised Version), the number of shares to be issued this time does not exceed 3,907,900 shares(including 3,907,900 shares), the issue price is not less than 2.16 yuan per share, and the raised funds are expectedto not exceed 8,441,064.00 yuan (including 8,441,064.00 yuan). After the completion of the additional issue, thecompany’s share capital increased to 72,548,200 shares, which was verified by [No. XYZH/2020CDA30002]“Capital Verification Report” issued by Shine Wing Certified Public Accountants (LLP), and the Company’sshareholding ratio was 63.2683%.On September 16, 2022, the Management Committee of China Securities Regulatory Commission issuedthe Reply on Approving the Registration of Zhongke Meiling Cryogenics Co.,Ltd. to Public Offering of Sharesto Unspecified Qualified Investors (ZJXK [2022] No. 2182), which approved the registration application ofZhongke Meiling to Public Offering of Shares to Unspecified Qualified Investors. The price of this issue is RMB
16.00/share, the initial number of shares issued is 24,182,734, and the actual net fund raised is RMB364,573,394.95. By September 30, 2022, all the above-mentioned raised funds had been received and verifiedby the Capital Verification Report [XYZH/No. 2022CDAA70693] issued by ShineWing Certified PublicAccountants (special general partnership). After the issuance, the share capital of Zhongke Meiling is 96,730,934shares, and the shareholding ratio of the Company is 47.45%.
2) Sichuan Hongmei Intelligent Technology Co., Ltd. (hereinafter referred to as Hongmei Intelligent) was
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
established on Jan. 24, 2014. It is a limited company jointly invested by the Company and Mianyang MeilingRefrigeration Co., Ltd., being approved by the Industrial and Commerce Bureau of Peicheng District, MianyangCity. The company owes registered capital of 5 million yuan, including 4.95 million yuan contributed byChanghong Meiling Company in cash, accounted for 99% of the registered capital; Mianyang MeilingRefrigeration Co., Ltd. contributed 50000 yuan in cash with 1% of the register capital occupied. The abovementioned register capital have been verified by verification report of Chuanjinlai Yanzi No. [2014] B039 issuedby Sichuan Jinlai Accounting Firm Co., Ltd. In July 2016, the shares of Hongmei Intelligent, held by theCompany has transferred to Sichuan Changhong AC Co., Ltd., after transferred, Changhong AC has 99% equityof Hongmei Intelligent, the Company has no shares of Hongmei Intelligent directly.
3) Mianyang Meiling Refrigeration Co., Ltd. (hereinafter referred to as Mianyang Meiling), a limited liabilitycompany jointly set up by the Company and China-tech Meiling Company, was founded on Mar. 6, 2009. Itsregistered capital and paid-in capital were 50 million yuan upon establishment, of which, the Company invested45 million yuan, accounting for 90% of the registered capital; Zhongke Meiling Company invested 5 millionyuan, accounting for 10% of the registered capital. The capital receipt was verified by the verification report[CXKY (2009) No. 008] of Sichuan Xingrui Certified Public Accountants. On 19 January 2011, the Companyincrease 50 million yuan in capital of Mianyang Meiling, of which 95 million yuan invested by the Company, a95% of total register capital while 5 million yuan invested by Zhongke Meiling, a 5% of total capital occupied.The paid-in capital has been verified by Capital Verification Report［XYZH/2010CDA6040］from ChengduBranch of Shinewing CPA CO., Ltd. In 2011, Zhongke Meiling entered into “Equity Transfer Agreement” withJiangxi Meiling Refrigeration Co., Ltd. 5 percent equity of Mianyang Meiling held by Zhongke Meiling wastransferred to Jiangxi Meiling Refrigerator. In September 2013, Jiangxi Meiling Refrigeration was combined byJiangxi Meiling Electric Appliance Co., Ltd., than 5 percent equity was transfer to Jiangxi Meiling ElectricAppliance.
4) Jiangxi Meiling Electric Appliance Co., Ltd. (hereinafter referred to as Jiangxi Meiling ElectricAppliance) was a limited liability company jointly established by the Company and Mianyang Meiling on 23May 2011. Register capital of the company totally as 50 million yuan, 49.375 million yuan invested by theCompany, 98.75% in total register capital while 0.625 million yuan invested by Mianyang Meiling, a 1.25% intotal register capital occupied. The initial investment 10.50 million yuan was received dated 13 May 2011 with10 million yuan from the Company and 0.5 million yuan from Mianyang Meiling. Rest of the capital shall beinvested fully within 2 years after the joint ventures established according to capital requirement. The initialinvestment capital were verified by the Capital Verification Report [JXKYZi (2011) No. 090] issued fromJingdezhen Xingci CPA Co., Ltd. Second capital 39.5 million yuan was fully funded on 28 July 2011, theCompany contributed 39.375 million yuan while Mianyang Meiling Company invested 125,000 yuan, thecontributions have been verified by the capital verification report [Jing Xing Kuai Yan Zi (2011) No.: 134] issuedfrom JDZ Xingci CPA Co., Ltd.
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
5) Hefei Meiling Wulian Technology Co., Ltd. (hereinafter referred to as Wulian Technology) wasestablished dated 21 January 2019 with registered capital of 10 million yuan, and it is the subsidiary of theCompany with fully-owned establishment. On 19 March 2019, paid in capital is 6 million yuan
6) Hefei Meiling Electric Appliances Marketing Co., Ltd (hereinafter referred to as Meiling Marketing) isthe limited company jointly invested by the Company and Mianyang Meiling Company on 21 Oct. 2009.Registered capital and paid-up capital were 10 million yuan, including 9.9 million yuan invested by the Company,a 99% of the registered capital; Mianyang Meiling Company contributed 0.1 million yuan, a 1% of the registeredcapital. The above mentioned paid-up register capital have been verified by verification report of [Wan An LianXin Da Yan Zi (2009) No. 074] issued by Anhui An Lian Xin Da Accounting Firm Co., Ltd. On 25 Nov. 2010,the Company increased capital 45 million yuan, registered capital amounting to 55 million yuan, including 54.9million yuan contributed by the Company, a 99.82% of the registered capital, while Mianyang Meiling invested
0.1 million yuan, a 0.18% of the registered capital. The increased capital has been verified by verification reportof [Wan Hua Shen Zheng Da Kuai Yan Zi (2010) No. 1514] issued by Anhui Hua Shen Zhengda CPA Co., Ltd.
7) Wuhan Meizirong Electrical Marketing Co., Ltd (hereinafter referred to as Wuhan Meizirong) wasestablished dated 10 January 2011 with registered capital of 5 million yuan; Meiling Marketing invested 4.60million yuan, accounted for 92% of the registered capital.
8) Hefei Meiling Nonferrous Metal Products Co., Ltd. (hereinafter referred to as Nonferrous Metal) was theSino-foreign joint venture jointly set up by original Meiling Group, Hefei Meiling Copper Co., Ltd. And Singapore KimShin Development Co., Ltd., which have been originally approved by the [WJMWFZZ (1996) No.349] of ForeignTrade and Economic Committee of Anhui Province. Its registered capital was US$ 2.92 million uponestablishment, of which, original Meiling Group invested US$ 1.46 million (monetary capital), accounting 50%of the registered capital, Hefei Meiling Copper Co., Ltd invested US$ 0.584 million (monetary capital of RMB 0.18million and real assets of US$ 0.404 million), accounting 20% of registered capital while Singapore Kim Shin DevelopmentCo., Ltd invested US$ 0.876 million (monetary capital), accounting 30% of the registered capital. The abovementioned investment verified by the verification report of [HSWZ (1995) No. 0737], [HSWZ (1996) No. 328]and [HSWZ (1998) No. 088] from Anhui CPAs Co., Ltd. In July 2008, approved by [HWS (2008) No.53] fromForeign Trade Economic Cooperation Bureau of Hefei City, 30% equity and 20% equity held by Singapore KimShin Development Co., Ltd and Hefei Meiling Copper Co., Ltd respectively transferred to original Meiling GroupTotally. The Company’s register capital came into 24,286,808.00 yuan after transference, and was not the joint-venture any more.
9) Changhong Meiling Ridian Technology Co., Ltd. (hereinafter referred to as Ridian Technology) is alimited liability company invested and established by Sichuan Changhong Electric Co., Ltd. (hereinafter referred
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
to as Sichuan Changhong) and Sichuan Changhong Motor Transport Co., Ltd. (hereinafter referred to asChanghong Motor Transport Company) on May 25, 2016. The registered capital and paid-in capital are 40million yuan, of which Sichuan Changhong has invested 32 million yuan by monetary capital, accounting for80% of the registered capital; Changhong Motor Transport Company has invested 8 million yuan, accountingfor 20% of the registered capital. The official receipts of registered capital have been verified by original SichuanJunhe Accounting Firm [No. JHYZ (2006) 3027]. Ridian Technology increased registered capital of 43 millionyuan on January 4, 2007, changing from 40 million yuan to 83 million yuan, for the newly increased 43 millionyuan, Sichuan Changhong invested 1.8 million yuan, Guangdong Xiongfeng Electric Co., Ltd. invested 40million yuan, and Kou Huameng and other 9 natural person shareholders invested 1.2 million yuan, at the sametime, the shareholders' meeting considered and agreed to transfer the investment of 8 million yuan of ChanghongMotor Transport Company to Sichuan Changhong Venture Investment Co., Ltd, the structure of the registeredcapital after changes was that Sichuan Changhong invested 33.8 million yuan, accounting for 40.72%;Guangdong Xiongfeng Electric Co., Ltd. invested 40 million yuan, accounting for 48.19%; Sichuan ChanghongVenture Investment Co., Ltd Invested 8 million yuan, accounting for 9.64%; Kou Huameng and other 9 naturalperson shareholders invested 1.2 million yuan, accounting for 1.45%. The change of registered capital wasverified by Zhongshan Promise Accounting Firm [No. ZCHZ (2007)501010].
On February 18, 2009, seven natural person shareholders transferred total 0.76% stock rights to Hu Zhiheng,after the transfer, the registered capital of Changhong Ridian was still 83 million yuan, the structure of registeredcapital after changes was that Sichuan Changhong invested 33.8 million yuan, accounting for 40.72%;Guangdong Xiongfeng Electric Co., Ltd. invested 40 million yuan, accounting for 48.19%; Sichuan ChanghongVenture Investment Co., Ltd invested 8 million yuan, accounting for 9.64%; Hu Zhiheng and other two naturalperson shareholders invested 1.2 million yuan, accounting for 1.45%.
On October 9, 2014, Changhong Ridian held the shareholders meeting which considered and agreed KouHuameng to transfer its stock rights of total 250,000 yuan which accounts for 0.301% of the Ridian Technology’sregistered capital to Sichuan Changhong Venture Investment Co., Ltd at the cost of 317,802 yuan. The othershareholders of the Ridian Technology waived the right of pre-emption. On December 11, 2014, RidianTechnology held the shareholders meeting which considered and agreed Guangdong Xiongfeng Electric Co.,Ltd. to transfer its stock rights of total 40 million yuan which accounts for 48.19 % of the company's registeredcapital to Sichuan Changhong Electric Co., Ltd. at the cost of 43,977,300 yuan. The other shareholders of theRidian Technology waived the right of pre-emption. The structure of registered capital after changes was thatSichuan Changhong invested 73.8 million yuan, accounting for 88.92%; Sichuan Changhong Venture InvestmentCo., Ltd Invested 8.25 million yuan, accounting for 9.94%; Hu Zhiheng and another natural person shareholderinvested 950,000 yuan, accounting for 1.14%.
On 4 January 2016, Sichuan Changhong and Sichuan Changhong Venture Investment Co., Ltd. transferred
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
total 98.855% equity of the Ridian Technology to the Company. After the transfer, the Company directly holds
98.855% stock rights of Ridian Technology.
On 7 April 2020, Ridian Technology convened the shareholders’ meeting, and agreed the Wu Chang yuan totransferred total 0.18% equity of the Ridian Technology to the Company. After the transfer, the Company directlyholds 99.0361% stock rights of Ridian Technology.
10) CHANGHONG MEILING ELECTRIC INDONESIA, PT.(hereinafter referred to as Indonesia Meiling)is a subsidiary established in Indonesia and jointly invested by Zhongshan Changhong and Sichuan Changhongin 2016, the company’s registered capital is 6 million US dollars, of which Zhongshan Changhong subscribedand paid 5.88 million US dollars in cash, accounting for 98% of the registered capital, Changhong AirConditioning subscribed and paid 120,000 US dollars in cash, accounting for 2% of the registered capital. On 4July 2017, rests of the 2.94 million US dollars are subscribed by Zhongshan Changhong in line with theagreement.
11) Changhong Ruba Trading Company (Private) Limited (hereinafter referred to as Changhong Ruba) wasa joint venture established by Zhongshan Changhong Appliances Company Limited and RUBA GENERALTRADING FZE Company (“RUBA”) on 5 August 2011 with the approval from Guangdong Development andReform Commission by issuance of the Approval Relating to Joint Construction of a Manufacturing and SellingPlatform Project in Pakistan by Zhongshan Changhong Appliances Company Limited (YFGWZ(2011)958). Theresolution of the second extraordinary shareholders' meeting of Zhongshan Changhong in 2016 passed the"Proposal on the Company's Capital Increase to Changhong Ruba Trading Company (Private) Limited", andagreed that the company and UAE RUBA Company jointly increase capital to Changhong Ruba TradingCompany(Private) Limited which was invested by both sides in Pakistan at an earlier stage, ZhongshanChanghong invested 3.84 million US dollars in this capital increase, and UAE RUBA Company invested 2.56million US dollars, the shares held by both sides remained unchanged. After the capital increase, the company’sregistered capital became 12.4 million US dollars, of which Zhongshan Changhong Home Appliances CompanyLimited invested 7.44 million US dollars in cash, shareholding ratio was 60%, UAE RUBA Company invested
4.96 million US dollars in cash, and shareholding ratio was 40%.
In 2017, the shareholder meeting of Zhongshan Changhong Electric Co., Ltd. passed the "Proposalon the Company's Increased Investment in Pakistan Refrigerator Project", agreeing that Zhongshan Changhong and the UAE RUBA company will jointly increase the capital of ChanghongRuba. , the shares held by both parties remain unchanged. After the capital increase, the registered capital of ChanghongRuba is US$13,004,923, of which Zhongshan Changhong contributed US$7,802,954 in cash, holding 60% of the shares, and RUBA of the United Arab Emirates contributed US$5,201,969 in cash, holding 40% of the shares.
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
12) Sichuan Changhong Air Conditioning Co., Ltd. (hereinafter referred to as Changhong Air Conditioner),a limited liability company jointly set up by Sichuan Changhong and Changhong Chuangtou, was founded onNovember 28, 2008. Its registered capital was 200 million yuan upon establishment, of which, SichuanChanghong invested 298 million yuan ( 210,088,900 yuan invested by monetary capital while 87,911,100 yuaninvested by real material), equivalent to 198 million yuan shares, accounting for 99% of the registered capital;and Changhong Chuangtou invested 3 million yuan, accounting for 1% of the registered capital with equivalentof 2 million yuan shares. The registered capital receipt was verified by the verification report [CGYYZ (2008)No. 177] of Sichuan Guang yuan Certified Public Accountants Co., Ltd. and [HLTHYZ (2008) No. 12-006] ofSichuan Henglitai Certified Public Accountants Co., Ltd. In December 2009, the Company obtained 100% equityof Changhong Air-conditioner by consolidated under the same control. In 2017, the Company increased capitalof 650 million yuan to Changhong Air Conditioner, after capital increased, registered capital of SichuanChanghong comes to 850 million yuan from 200 million yuan, shareholding still counted as 100%.
13) Zhongshan Changhong Electric Co., LTD (hereinafter referred to as Zhongshan Changhong), was theoriginal Guangdong Changhong Electric Co., Ltd., and is a limited liability company jointly set up by SichuanChanghong and China Minmetals on May 22, 2001. Its registered capital was RMB 80 million uponestablishment, of which, Sichuan Changhong invested 72 million yuan, including 69.3 million yuan biding forthe estate/non-estate from original Zhongshan Sanrong Air-conditioner Co., Ltd. And its patent use-right of 2.7million yuan, accounting for 90% of the registered capital; Chine Minmetals invested 8 million yuan in monetarycapital accounting 10% of the registered capital. The Company changed its name originally from GuangdongChanghong Electric Co., Ltd in July 2003. In December 2009, the Company obtained 90% equity of ZhongshanChanghong by consolidated under same control. 10% equity held by China Minmetals has been transferred byChanghong Air-conditioner on April 11, 2010. On 25 May 2014, the Company increased 36 million yuan toZhongshan Changhong, and Changhong AC increased 4 million yuan. In 2016, according to the overseasdevelopment strategy of the Company and the development and operation needs of the subsidiaries, theCompany and the wholly-owned subsidiary Changhong Air Conditioning have increased capital of 64 millionyuan to Zhongshan Changhong according to the existing shareholding ratio, among which the capital increaseof the Company was 57.6 million yuan, and the capital increase of Changhong Air Conditioning was 6.4 millionyuan. After the completion of this capital increase, the registered capital Zhongshan Changhong shall increaseto184 million yuan, the shareholding ratio of the company and Changhong Air Conditioning remainedunchanged and was still 90% and 10%, of which the Company invested 165.6 million yuan, accounting for 90%of the registered capital, Changhong Air Conditioning invested 18.4 million yuan, accounting for 10% of theregistered capital. In March 2020, in accordance with the Company’s overseas development strategy and theoperation and development needs of its subsidiaries, the Company and its wholly-owned subsidiary ChanghongAir Conditioning increased capital of 150 million yuan to Zhongshan Changhong according to the existingshareholding ratios, of which the Company increased capital of 135 million yuan, Changhong Air-Conditioning
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
increased capital of 15 million yuan. After the completion of capital increase, the registered capital of ZhongshanChanghong has increased to 334 million yuan. The Company’s and Changhong’s shareholding ratios inZhongshan Changhong remain unchanged at 90% and 10%, of which the Company funded 300.6 million yuan,accounting for 90% of the registered capital, while Changhong Air Conditioning funded 33.4 million yuan,accounting for 10% of the registered capital.
14) Hefei Meiling Group Holdings Limited (hereinafter referred to as Meiling Group), was the state-ownedcompany originally approved by People’s Government of Hefei Province and established authorized by SASAC of HefeiCity. On July 14, 2008, 100% state-owned equity of Meiling Group has freely transferred to Xingtai Holding byHefei SASAC. Agreement by the approval of < State-owned property agreement transfer from Meiling Group>[ HGZCQ (2010) No.34] of Hefei SASAC on April 9, 2010, 100% state-owned property of Meiling Group afterpartial assets and liabilities separated transferred to the Company from Xingtai Holding as amount of 113.2million yuan. The re-registration of industrial and commercial procedure for Meiling Group after separatedpartial assets liability has finished on July 28, 2010. The new Meiling Group has register capital of 80 millionyuan, and has been verified by the [AD (2010) YZD No. 016] from Anhui Auding CPAs Co., Ltd.
15) Meiling EquatorHousehold Appliance (Hefei) Co., Ltd. (hereinafter referred to as EquatorHouseholdAppliance) was the Sino-foreign joint venture jointly set up by original Meiling Group and EQUATOR INVESTMENTS(USA) INC. (EQUATOR for short), which have been approved by the [SWZWFZZ(2004) No.0103] of ApprovalCertificate of Foreign Enterprise from People’s Government of Anhui Province. Its registered capital was US$ 3million upon establishment, of which, Sino company invested US$ 2.25 million in machinery equipment,accounting 75% of the registered capital while foreign company invested US$ 0.5 million in monetary capitaland US$ 0.25 million in intangible assets, amounting to US$0.75 million, accounting 25% of the registeredcapital. The above mentioned investment verified by the verification report of [WYAYZ (2004) No. 135] fromAnhui Yongan CPAs Co., Ltd. In July 2007, approved by [HWJ (2007) No.136] from Foreign Trade EconomicCooperation Bureau of Hefei City, 25% equity held by EQUATOR transferred to Anhui Meiling Electric Co.,Ltd. Totally. The Company’s register capital came into 24,793,200 yuan after transference, and was not the joint-venture any more. 25% equity owned by Anhui Meiling Electric Co., Ltd has been transferred totally to originalMeiling Group in July 2009.
16) Hefei Equator Appliance Co., Ltd. (hereinafter referred to as Equator Appliance) was jointly set up by originalMeiling Group and Yingkaite Appliance on September 26, 2007. Its register capital was 12 million yuan, among which,original Meiling Group invested 8,670,600 yuan in monetary capital, accounting 72.255% in registered capital;Equator Appliance invested 3,329,400 yuan in the assessment value of intangible assets (land-use right),accounting 27.745% of total registered capital. The investment being verified by [WYAZ (2004) No. 135] fromAnhui Yongan CPAs Co., Ltd.
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
17) Hong Yuan Ground Energy Heat Pump Technology Co., Ltd. (hereinafter referred to as Hong YuanGround Energy) was established on 28 August 2015, it is a limited liability company authorized byAdministration for Industry and Commerce of Peicheng District, Mianyang, Sichuan, contributed by SichuanChanghong Air Conditioner Co., Ltd (hereinafter referred to as Changhong Air Conditioner) and Hengyou yuanTechnology Development Group Co., Ltd. together. Registered capital amounted as 50 million yuan, including
25.5 million yuan contributed by Changhong Air Conditioner in cash, a 51% in total registered capital; Hengyouyuan Technology Development Group Co., Ltd. invested 24.5 million yuan in cash, a 49% in registered capital.
18) Hong Yuan Ground Energy Heat Pump Tech. (Zhongshan) Co., Ltd.(hereinafter referred to as Hongyuan Zhongshan) was established and invested on 18 July 2017 with registered capital of 15 million yuan, TheHong Yuan Ground Energy Heat Pump Tech. Co., Ltd contributed 1.5 million yuan with own funds and takes100% in the registered capital.In 2018, the shareholders of the Hong yuan Zhongshan decided to increase capitalof 30 million yuan, and contributed by the shareholder Hong Yuan Ground Energy; thus registered capital ofHong yuan Zhongshan up to 45 million yuan
19)Guangzhou Changhong Trading Co., Ltd. (hereinafter referred to as Changhong Trading) was establishedon 6 Jan. 2017, the wholly-owned subsidiary of Zhongshan Changhong Electric Co., LTD (hereinafter referredto as Zhongshan Changhong) with registered capital of one million yuan
20) Hebei Hongmao Household Appliance Technology Co., Ltd (hereinafter referred to as Hebei Hongmao)was established on 21 July 2017 with registered capital of 5 million yuan. Changhong Ridian invested 5 millionyuan by own fund and takes 100% in registered capital.
21) Anhui Tuoxing Technology Co., Ltd. (hereinafter referred to as Tuoxing Technology) wasestablished on 20 May 2019 with registered capital of 10 million yuan and it is the subsidiary of ZhongkeMeiling with fully-owned establishment. On May 21, 2020 and February 21, 2021, Zhongke Meilinginvested RMB 5 million, with a total investment of RMB 10 million, accounting for 100% of its registeredcapital.
22) CH-Meiling.International (Philippines) Inc. was established on 13 February 2020 in Philippineswith registered capital of US$ 1,000,000, takes 100% of the equity. As of December 31,2022, theCompany has invested US$ 1,000,000,
23) Hefei Changhong Meiling Life Electric Co., Ltd was established on 24 December 2020, jointlyestablished by the Company and Ningbo Hongling Enterprise Management Partnership (LimitedPartnership). the Company contributed 35 million yuan, representing 70% of the equity while 15 millionyuan invested by Ningbo Hongling Enterprise Management Partnership (Limited Partnership), a 30%
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
takes in the equity. The paid-in capital contribution from the Company and Ningbo Hongling EnterpriseManagement Partnership (Limited Partnership) has been completed on January 21, 2021 and on January18, 2021 respectively.
24) Anhui Ling’an Medical Equipment Co., Ltd. (hereinafter referred to as Ling’an Medical) wasestablished on 4 September 2021, which is a wholly-owned subsidiary of Zhongke Meiling, and registeredcapital of 10 million yuan. On June 29, 2021, Zhongke Meiling actually contributed 10 million yuan,accounting for 100% of the registered capital. In 2022, the Board of Directors of Zhongke Meiling decidedto increase the registered capital by RMB 40 million. On December 30, 2022, the paid-in capital wascompleted, and the registered capital of Ling'an Medical increased to RMB 50 million.
(2) Major non-wholly-owned subsidiary
| Subsidiary | Shareholding ratio of minority | Gains/losses attributable to minority in Current Period | Dividend distributed to minority announced in Current Period | Balance of minority’s interest at period-end |
| Zhongke Meiling | 52.5488% | 17,538,180.20 | 21,318,560.00 | 315,898,795.88 |
| Ground Energy | 49.00% | 3,415,248.84 | 24,549,355.52 | |
| Ridian Technology | 0.9639% | 6,008.86 | 1,326,570.78 | |
| Meiling Life Appliances | 30.00% | 12,172,873.75 | 4,099,298.64 | 32,183,127.65 |
(3) Financial information for major non-wholly-owned subsidiary
| Subsidiary | Ending balance | |||||
| Current assets | Non-current assets | Total assets | Current liability | Non-current liability | Total liabilities | |
| Zhongke Meiling | 649,452,399.30 | 157,673,698.36 | 807,126,097.66 | 190,256,989.79 | 15,715,771.32 | 205,972,761.11 |
| Ground Energy | 190,767,892.48 | 18,222,456.16 | 208,990,348.64 | 158,674,964.71 | 214,658.38 | 158,889,623.09 |
| Ridian Technology | 231,271,013.10 | 42,012,672.36 | 273,283,685.46 | 135,113,073.14 | 538,894.36 | 135,651,967.50 |
| Meiling Life Appliances | 559,068,082.42 | 224,882.24 | 559,292,964.66 | 452,015,872.49 | 452,015,872.49 | |
(Continued)
| Subsidiary | Opening balance | |||||
| Current assets | Non-current assets | Total assets | Current liability | Non-current liability | Total liabilities | |
| Zhongke Meiling | 371,876,985.25 | 153,246,440.33 | 525,123,425.58 | 260,324,038.65 | 16,724,150.21 | 277,048,188.86 |
| Ground Energy | 167,092,910.84 | 23,932,195.59 | 191,025,106.43 | 147,765,923.82 | 292,650.70 | 148,058,574.52 |
| Ridian Technology | 256,926,013.09 | 46,283,555.98 | 303,209,569.07 | 165,637,349.70 | 718,345.11 | 166,355,694.81 |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
| Subsidiary | Opening balance | |||||
| Current assets | Non-current assets | Total assets | Current liability | Non-current liability | Total liabilities | |
| Meiling Life Appliances | 421,039,031.17 | 169,482.39 | 421,208,513.56 | 340,843,338.42 | 340,843,338.42 | |
(Continued)
| Subsidiary | Current Period | |||
| Operation income | Net profit | Total comprehensive income | Cash flow from operation activity | |
| Zhongke Meiling | 406,489,091.83 | 46,273,692.68 | 46,273,692.68 | -38,010,376.20 |
| Ground Energy | 316,282,181.46 | 6,969,895.59 | 6,969,895.59 | 20,156,454.01 |
| Ridian Technology | 237,989,059.17 | 623,419.57 | 623,419.57 | -13,918,903.50 |
| Meiling Life Appliances | 1,419,586,443.18 | 40,576,245.84 | 40,576,245.84 | 67,906,512.81 |
(Continued)
| Subsidiary | Last Period | |||
| Operation income | Net profit | Total comprehensive income | Cash flow from operation activity | |
| Zhongke Meiling | 464,899,620.09 | 65,085,510.92 | 65,085,510.92 | 70,137,269.97 |
| Ground Energy | 347,880,649.74 | 8,044,490.53 | 8,044,490.53 | 60,316,055.84 |
| Ridian Technology | 309,467,627.62 | 2,351,153.78 | 2,351,153.78 | -243,853,078.73 |
| Meiling Life Appliances | 1,136,846,527.85 | 30,365,175.14 | 30,365,175.14 | 262,095,425.65 |
(4) Major limitation on using enterprise group’s assets and liquidate debts of enterprise group: nil
(5) Offering financial supporting or other supports for structured entity that included in consolidationstatement scope: nil
2. Changes of owner’ equity shares in subsidiary and its impacts: nil
| Items | Zhongke Meiling | Total |
| Original ratio of shares held | 63.2683% | 63.2683% |
| Equity purchased from minority | ||
| Original ratio of shares held | 24,182,734.00 | 24,182,734.00 |
| Equity purchased from minority | 47.4512% | 47.4512% |
| Cost of purchasing minority equity | ||
| Less: Ratio of the net assets measured by equity ratio while acquiring the subsidiary | 281,328,431.66 | 281,328,431.66 |
| Equity dilution for shares issuance | ||
| Balance | 136,158,171.77 | 136,158,171.77 |
| Including: Capital public reserve adjusted | 136,158,171.77 | 136,158,171.77 |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
In 2022, Zhongke Meiling, a subsidiary, publicly issued 24,182,734 shares to unspecified qualifiedinvestors (at an issue price of RMB 16 per share), and after deducting the issuance expenses, the capitalreserve of Zhongke Meiling increased by RMB 340,390,660.95. According to the shareholding ratiobefore and after the capital increase, the Company shall be entitled to the difference of net assets share ofZhongke Meiling of RMB 136,158,171.77, which is included in the capital reserve.
3. Equity in joint venture or associate enterprise
(1) Major joint venture or associate enterprise
| Joint venture or associate enterprise | Main office place | Register place | Business nature | Shareholding ratio（%) | Accounting treatment for investment of joint venture or associate enterprise | |
| Directly | Indirectly | |||||
| Associated companies： | ||||||
| 1.ChanghongRubaElectricCompany(Private)Ltd. | Lahore, Pakistan | Lahore | Manufactures, sales | 40.00 | Equity | |
| 2.Hefei Xingmei Assets Management Co., Ltd. | Hefei | Hefei | Rental, agency | 48.28 | Equity | |
| 3.Sichuan Zhiyijia Network Technology Co., Ltd. | Mianyang | Mianyang | Sales | 50.00 | Equity | |
| 4.Hong Yuan Ground Energy Heat Tech. Co., Ltd. | Mianyang | Mianyang | R & D, sales, after-sales | 49.00 | Equity | |
| 5.Sichuan Tianyou Guigu Technology Co., Ltd. | Mianyang | Mianyang | Manufactures, sales | 25.00 | Equity | |
| 6.Chengdu Guigu Environmental Tech. Co., Ltd | Chengdu | Chengdu | R&D, manufacturing and sales | 25.00 | Equity | |
(2) Financial information for major Joint venture: nil
(3) Financial information for associate enterprise
| Item | Balance at year-end/Current Year | |||||
| ChanghongRubaElectricCompany(Private)Ltd. | Hefei Xingmei Assets Management Co., Ltd. | Sichuan Zhiyijia Network Technology Co., Ltd. | Hong Yuan Ground Energy Heat Tech. Co., Ltd. | Sichuan Tianyou Guigu Technology Co., Ltd. | Chengdu Guigu Environmental Tech. Co., Ltd | |
| Current assets | 81,268,806.16 | 45,818,917.65 | 3,283,851,057.02 | 38,746,877.56 | 14,399,461.73 | 41,590,971.33 |
| Including: cash and cash equivalent | 4,921,365.69 | 45,763,227.65 | 14,808,208.88 | 29.18 | 5,469,142.38 | 23,853,311.23 |
| Non-current assets | 30,867,707.49 | 5,635,867.44 | 819,281.43 | 12,352.49 | 1,244,940.57 | |
| Total assets | 112,136,513.65 | 45,818,917.65 | 3,289,486,924.46 | 39,566,158.99 | 14,411,814.22 | 42,835,911.90 |
| Current liability | 154,683,192.50 | 4,602,727.84 | 3,185,798,119.47 | 4,708,039.64 | 1,891,931.14 | 10,624,102.18 |
| Non-current liability | 1,632,200.33 | 2,731,542.18 | ||||
| Total liabilities | 154,683,192.50 | 4,602,727.84 | 3,187,430,319.80 | 4,708,039.64 | 1,891,931.14 | 13,355,644.36 |
| Minority's interest | 1,096,374.40 | |||||
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
| Item | Balance at year-end/Current Year | |||||
| ChanghongRubaElectricCompany(Private)Ltd. | Hefei Xingmei Assets Management Co., Ltd. | Sichuan Zhiyijia Network Technology Co., Ltd. | Hong Yuan Ground Energy Heat Tech. Co., Ltd. | Sichuan Tianyou Guigu Technology Co., Ltd. | Chengdu Guigu Environmental Tech. Co., Ltd | |
| Equity attributable to shareholder of parent company | -42,546,678.85 | 41,216,189.81 | 102,056,604.66 | 34,858,119.35 | 12,519,883.08 | 28,383,893.14 |
| Share of net assets measured by shareholding | -17,018,671.54 | 19,899,176.44 | 51,028,302.33 | 17,080,478.48 | 3,129,970.77 | 7,095,973.29 |
| Adjustment | ||||||
| --Goodwill | 821,877.28 | 1,416,227.93 | ||||
| Unrealized profit of the internal downstream transactions | 61,436.67 | 19,388.90 | 6,752.44 | |||
| Unrealized profit of the internal upstream transactions | ||||||
| Other | 17,018,671.54 | |||||
| Book value of the equity investment for associate enterprise | 19,899,176.44 | 51,850,179.61 | 17,019,041.81 | 3,110,581.87 | 8,505,448.77 | |
| Fair value of equity investment for the affiliates with consideration publicly | ||||||
| Operation income | 130,028,432.81 | 11,137,539,778.84 | 7,455,389.79 | 8,533,693.50 | 28,881,455.21 | |
| Financial expenses | 102,800.34 | -61,942.19 | (50,856,868.09) | 1,598.44 | -107,415.28 | -490,708.14 |
| Income tax expenses | 1,110,901.10 | 3,561,226.32 | (135,812.07) | |||
| Net profit | -31,642,829.80 | 10,683,678.96 | 12,126,330.11 | -7,408,715.92 | 606,118.86 | -2,419,303.39 |
| Other | ||||||
| Other comprehensive income | 4,165,076.91 | |||||
| Total comprehensive income | -27,477,752.89 | 10,683,678.96 | 12,126,330.11 | -7,408,715.92 | 606,118.86 | |
| Dividend received from associate enterprise in Current Year | 5,069,400.00 | |||||
(Continued)
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
| Items | Balance at year-begin /Last Year | |||||
| ChanghongRubaElectricCompany(Private)Ltd. | Hefei Xingmei Assets Management Co., Ltd. | Sichuan Zhiyijia Network Technology Co., Ltd. | Hong Yuan Ground Energy Heat Tech. Co., Ltd. | Sichuan Tianyou Guigu Technology Co., Ltd. | Chengdu Guigu Environmental Tech. Co., Ltd | |
| Current assets | 89,100,592.52 | 44,306,769.36 | 3,562,320,255.30 | 39,551,631.60 | 12,815,224.66 | 49,157,432.66 |
| Including: cash and cash equivalent | 3,601,992.73 | 15,092,065.72 | 1,735,103,036.41 | 41,161.98 | 6,480,537.53 | 28,252,926.12 |
| Non-current assets | 37,062,073.18 | 2,831,773.02 | 7,359,768.31 | 8,286,398.47 | 12,352.49 | 1,325,807.70 |
| Total assets | 126,162,665.70 | 47,138,542.38 | 3,569,680,023.61 | 47,838,030.07 | 12,827,577.15 | 50,483,240.36 |
| Current liability | 141,231,591.66 | 6,054,518.27 | 3,478,330,845.92 | 5,571,194.80 | 913,812.93 | 16,058,351.93 |
| Non-current liability | 1,418,903.14 | 2,525,317.50 | ||||
| Total liabilities | 141,231,591.66 | 6,054,518.27 | 3,479,749,749.06 | 5,571,194.80 | 913,812.93 | 18,583,669.43 |
| Minority's interest | 1,102,582.39 | |||||
| Equity attributable to shareholder of parent company | -15,068,925.96 | 41,084,024.11 | 89,930,274.55 | 42,266,835.27 | 11,913,764.22 | 30,796,988.54 |
| Share of net assets measured by shareholding | -6,027,570.38 | 19,835,366.84 | 44,965,137.28 | 20,710,749.28 | 2,978,441.06 | 7,699,247.14 |
| Adjustment | ||||||
| --Goodwill | 821,877.28 | 1,416,227.93 | ||||
| Unrealized profit of the internal downstream transactions | 11,702,988.94 | 80,635.11 | 4,252.12 | 7,510.11 | ||
| Unrealized profit of the internal upstream transactions | ||||||
| Other | 6,027,570.38 | |||||
| Book value of the equity investment for associate enterprise | 19,835,366.84 | 34,084,025.62 | 20,630,114.17 | 2,974,188.94 | 9,107,964.96 | |
| Fair value of equity investment for the affiliates with consideration publicly | ||||||
| Operation income | 212,975,934.56 | 11,191,030,556.90 | 24,577,536.47 | 7,983,502.89 | 38,128,313.52 | |
| Financial expenses | 2,974,146.42 | 443,380.59 | -51,236,312.07 | 2,374.70 | -105,819.09 | -374,408.78 |
| Income tax expenses | 2,735,333.56 | 4,852,902.82 | 784,678.81 | |||
| Net profit | -6,640,369.42 | 26,945,094.97 | 4,472,169.87 | -2,953,746.66 | 495,803.24 | 12,183,906.56 |
| Other | -648,154.63 | |||||
| Other comprehensive income | 6,538,313.32 | |||||
| capital reserve | -130,171.30 | |||||
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
| Items | Balance at year-begin /Last Year | |||||
| ChanghongRubaElectricCompany(Private)Ltd. | Hefei Xingmei Assets Management Co., Ltd. | Sichuan Zhiyijia Network Technology Co., Ltd. | Hong Yuan Ground Energy Heat Tech. Co., Ltd. | Sichuan Tianyou Guigu Technology Co., Ltd. | Chengdu Guigu Environmental Tech. Co., Ltd | |
| Total comprehensive income | -102,056.10 | 26,945,094.97 | 3,693,843.94 | -2,953,746.66 | 495,803.24 | 12,183,906.56 |
| Dividend received from associate enterprise in Current Year | 1,025,445.14 | |||||
(4) Financial summary for non-important Joint venture and associate enterprise
| Item | Balance at year-end/Current Year | Balance at year-begin /Last Year |
| Associated companies： | ||
| Total book value of investment | ||
| Total amount measured by shareholding ratio | ||
| --Net profit | -444,973.83 | -904,106.72 |
| --Other comprehensive income | ||
| -- Total comprehensive income | -444,973.83 | -904,106.72 |
(5) Major limitation on capital transfer ability to the Company from joint venture or affiliates: Nil
(6) Excess loss occurred in joint venture or affiliates
Hefei Meiling Solar Energy Technology Co., Ltd and ChanghongRubaElectricCompany(Private)Ltdhave losses above the quota.
(7) Unconfirmed commitment with joint venture investment concerned: Nil
(8) Intangible liability with joint venture or affiliates investment concerned: Nil
4. Major conduct joint operation: Nil
5. Structured body excluding in consolidate financial statement: Nil
IX. Relevant risks related with financial instrumentThe major financial instruments of the Company include borrowings, account receivables, account payable,Trading financial assets, Trading financial liability, the details of which are set out in Note VI.Risks related tothese financial instruments include exchange risks and interest rate risks. The management of the Companycontrols and monitors the risk exposures to ensure the above risks are under control.
1. Various risk management objectives and policies
The Company's goal in risk management is to strike a proper balance between risks and benefits, reduce thenegative impact of risks on the Company's operating performance to the lowest level, and maximize the
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
interests of shareholders and other equity investors. Based on this risk management goal, the basic strategy ofthe Company's risk management is to identify and analyze all kinds of risks faced by the Company, establishan appropriate risk tolerance bottom line and conduct risk management, and timely and reliably supervise allkinds of risks to control the risks within a limited range.
(1) Market risk
1) Exchange rate risk
The Company pays close attention to the impact of exchange rate changes on the Company. The Companyattaches great importance to the study of exchange rate risk management policies and strategies. In order toavoid the exchange rate risk of foreign currency payment and foreign currency collection and settlementincome, the Company has signed several forward foreign exchange contracts with banks. The fair value offorward foreign exchange contracts recognized as derivative financial instruments on December 31, 2022 isRMB 15,699,063.89. Changes in the fair value of derivative financial instruments have been included in theprofit and loss, and the relevant contents of "VI. 56 Income from changes in fair value" in this note. In themeantime, with the constant change in the share of the international market, if there are risks beyond the controlof the Company, such as unilateral large changes in the RMB exchange rate, the Company will reduce the risksby adjusting the sales or purchasing strategies.
2) Interest rate risk
The Company's interest rate risk arises from bank loans and interest-bearing debts. Financial liabilities withfloating interest rate expose the Company to cash flow interest rate risk, while financial liabilities with fixedinterest rate expose the Company to fair value interest rate risk. The Company decides the relative proportionof fixed interest rate and floating interest rate contracts according to the market environment at that time. OnDecember 31, 2022, the Company's interest-bearing debts were mainly the fixed-rate loan contractsdenominated in RMB, with a total amount of RMB 674,000,000.00; and the RMB floating-rate loan contracts,with a total amount of RMB 168,000,000.00. The Company's risk of changes in the fair value of financialinstruments due to changes in interest rates is mainly related to fixed-rate bank loans. The Company's risk ofcash flow changes of financial instruments caused by interest rate changes is mainly related to floating interestrate bank loans. The Company pays close attention to the impact of this part of interest rate changes on theCompany and attaches importance to the study of interest rate risk management policies and strategies.
(2) Credit risk
On December 31, 2022, the biggest credit risk exposure that may cause the financial loss of the Companymainly comes from the loss of the Company's financial assets caused by the failure of the other party to thecontract and the financial guarantee undertaken by the Company, including: the book amount of the financial
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
assets recognized in the consolidated balance sheet; For financial instruments measured at fair value, the bookvalue reflects their risk exposure, but not the maximum risk exposure, and its maximum risk exposure willchange with the change of fair value in the future. In order to reduce the credit risk, the Company set up aspecial department to determine the credit line, conduct credit approval, and implement other monitoringprocedures to ensure that necessary measures are taken to recover overdue creditor's rights. Meanwhile, theCompany tries to reduce the impact of credit default of creditor's rights by purchasing credit insurance. Inaddition, the Company reviews the recovery of each single receivable on each balance sheet date to ensure thatsufficient bad debt provision is made for unrecoverable funds. Therefore, the management of the Companybelieves that the credit risk assumed by the Company has been greatly reduced. The Company's working capitalis deposited in the finance company, so the credit risk of working capital is low. The Company has adoptednecessary policies to ensure that all sales customers have good credit records. The total amount of the top fiveaccounts receivable is RMB 800,614,365.63, accounting for 51.14% of the accounts receivable at the end ofthe year, which is dependent on major customers. Except for the top five accounts receivable, the Companyhas no other major credit risks.
(3) Liquidity risk
Liquidity risk is the risk that the Company cannot fulfill its financial obligations on the due date. TheCompany's method of managing liquidity risk is to ensure that there is enough financial liquidity to fulfill thedue debts through capital plan management, without causing unacceptable losses or damaging the reputationof the company. According to the requirements of the capital plan cycle, the Company makes a capital plan inadvance to ensure that there is sufficient capital when the debt is due. The management of the Companymonitors the use of bank loans and ensures compliance with the loan agreement. In the meantime, it conductsfinancing negotiations with financial institutions to maintain a certain credit line and reduce liquidity risk.
X. Fair value disclosure
1. Asset and liability measured by fair value at end of Current Period and fair value measurement level
| Items | Fair value at period-end | |||
| 1st level | 2nd level | 3rd level | Total | |
| I. Continuous fair value measurement | — | — | — | — |
| (i) Trading financial assets | 57,660,588.67 | 57,660,588.67 | ||
| 1.Financial assets measured at fair value and whose changes are included in current gains/losses | 57,660,588.67 | 57,660,588.67 | ||
| Including: Derivative financial assets | 57,660,588.67 | 57,660,588.67 | ||
| (ii) Other non-current financial assets | 81,060,223.94 | 547,489,224.37 | 628,549,448.31 | |
| (iii) Receivables financing | 1,446,358,719.88 | 1,446,358,719.88 | ||
| Total assets continuously measured at fair value | 57,660,588.67 | 81,060,223.94 | 1,993,847,944.25 | 2,132,568,756.86 |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
| Items | Fair value at period-end | |||
| 1st level | 2nd level | 3rd level | Total | |
| (iv) Trading financial liability | 41,961,524.78 | 41,961,524.78 | ||
| 1. Financial liabilities measured by fair value and with variation reckoned into current gains/losses | 41,961,524.78 | 41,961,524.78 | ||
| Including: Derivative financial liability | 41,961,524.78 | 41,961,524.78 | ||
| Total liabilities continuously measured at fair value | 41,961,524.78 | 41,961,524.78 | ||
2. The basis for determining the market price of continuous and non-continuous first-level fair valuemeasurement itemsThe company's fair value measurement items are futures contracts and foreign exchange options. Themarket price of futures contracts is determined based on the closing price of the futures contract at theend of the period; the market price of foreign exchange options is determined based on the quotation ofcontract products of the foreign exchange options at the end of the period.
3. Qualitative and quantitative information on the valuation techniques used and important parameters forcontinuous and non-continuous second-level fair value measurement itemsThe fair value measurement items are long-term investments in the fund company. For long-terminvestments in fund companies, the assessed book value can represent the best estimate of fair valuewithin the scope.
4. Qualitative and quantitative information on the valuation techniques used and important parameters forcontinuous and non-continuous third-level fair value measurement itemsThe items with fair value measurement refer to the investment of Sichuan Changhong Group Finance Co.,Ltd and Huishang Bank Co., Ltd. As the unlisted equity instrument, the fair value are estimated using arange of valuation models, the assumptions used are not supported by observable market prices or interestrates. We believes that the fair value and their changes estimated by valuation techniques are reasonableand are the most appropriate values at the balance sheet date.XI. Related parties and related transaction(I) Relationship of related parties
1. Controlling shareholder and ultimate controller
(1) Controlling shareholder and ultimate controller
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
| Controlling shareholder and ultimate controller | Registration place | Business nature | Registered capital | Share-holding ratio in the Company | Voting rights ratio in the Company |
| Sichuan Changhong Electric Co., Ltd. | Mianyang | Manufacture and sales | 4,616,244,222.00 | 27.36% | 27.36% |
Sichuan Changhong Electronics Holding Group is the controlling shareholder of Sichuan ChanghongElectric Co., LTD, and the SASAC Mianyang office holds90% equity interests of Sichuan ChanghongElectronic Holding Group, which means that SASAC Mianyang office is the ultimate controller of theCompany.
(2) Register capital and change thereof of controlling shareholder
| Controlling shareholder | Opening balance | Increase this period | Decrease this period | Ending balance |
| Sichuan Changhong Electric Co., Ltd. | 4,616,244,222.00 | 4,616,244,222.00 |
(3) Shares held by the controlling shareholder and its changes on equity
| Controlling shareholder | Amount of shares held | Shareholding ratio | ||
| Ending balance | Opening balance | Ratio at period-end | Ratio at period-beginning | |
| Sichuan Changhong Electric Co., Ltd. | 281,832,434.00 | 281,832,434.00 | 27.36% | 26.98% |
2. Subsidiary
Found more in Note “VIII. 1 (1) Enterprise group composition”
3. Joint venture and associated enterprise
Major Joint venture and associated enterprise of the Company found more in Note “VIII. 3 (1) major jointventure and associated enterprise”. Other Joint venture and associated enterprise that have relatedtransactions occurred with the Company in Current Period or occurred in last period, and with balanceresults:
| Joint venture and associated enterprise | Relationship with the company |
| Hefei Xinmeitai Energy Tech. Co., Ltd. | Associated enterprise of subsidiary Meiling Group |
| ChanghongRubaElectricCompany(Private)Ltd | Associated enterprise of subsidiary Zhongshan Changhong |
| Hefei Xingmei Assets Management Co., Ltd. | Associated enterprise of the Company |
| Sichuan Zhiyijia Network Technology Co., Ltd. | Associated enterprise of the Company, has the same controlling shareholder and actual control of the Company |
| Hong Yuan Ground Energy Heat Tech. Co., Ltd | Associated enterprise of subsidiary Changhong Air-conditioner |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
| Joint venture and associated enterprise | Relationship with the company |
| Sichuan Tianyou Guigu Technology Co., Ltd | Associated enterprise of subsidiary Changhong Air-conditioner |
| Chengdu Guigu Environmental Tech. Co., Ltd | Associated enterprise of subsidiary Changhong Air-conditioner |
4. Other related party
| Other related party | Relationship with the company |
| Sichuan Changhong International Travel Service Co., Ltd | Control by same controlling shareholder and ultimate controller |
| Hunan Grand-Pro Intelligent Tech. Company | Control by same controlling shareholder and ultimate controller |
| CHANGHONG.ELECTRIC.(AUSTRALIA) PTY.LTD. | Control by same controlling shareholder and ultimate controller |
| CHANGHONG ELECTRIC MIDDLE EAST FZCO | Control by same controlling shareholder and ultimate controller |
| Sichuan Changhong Electronic Products Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Hefei Changhong New Energy Technology Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Changhong Moulding Tech. Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Changhong Europe Electric s.r.o | Control by same controlling shareholder and ultimate controller |
| Changhong Huayi Compressor Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Changhong Jijia Fine Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Changhong Minsheng Logistics Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Kuaiyidian Electric Appliance Service Chain Co., Ltd | Control by same controlling shareholder and ultimate controller |
| Sichuan Changhong Precision Electronics Tech. Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| PT.CHANGHONG ELECTRIC INDONESIA | Control by same controlling shareholder and ultimate controller |
| CHANGHONG (HK) TRADING LIMITED | Control by same controlling shareholder and ultimate controller |
| Sichuan Changhong Device Technology Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Chengdu Changhong Electronic Technology Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Lejiayi Chain Management Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Hongwei Technology Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Changhong Real Estate Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Changhong New Energy Technology Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Hefei Changhong Industrial Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Changhong International Holdings (Hong Kong) Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Guangdong Changhong Electronics Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Changhong Package Printing Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Changhong Jineng Sunshine Technology Co., Ltd. | Control by same controlling shareholder and ultimate controller |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
| Other related party | Relationship with the company |
| Sichuan Changhong Power Source Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Hongxin Software Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Changhong Network Technology Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Guangyuan Changhong Electronic Technology Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Yuanxin Financial Lease Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Orion.PDP.Co.,ltd | Control by same controlling shareholder and ultimate controller |
| 081 Electronic Group Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Changhong International Hotel Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Aichuang Science & Technology Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Ailink Technology Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Changhong Intelligent Manufacturing Technology Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Changhong Property Service Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Huanyu Industrial Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Jiahong Industrial Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Changhong Gerun Environmental Protection Tech. Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Huafeng Enterprise Group Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Changhong Group Finance Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Mianyang Huafeng Hulian Technology Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Changhong Jiahua Information Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Qisai Microelectronic Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Yibin Hongxing Electric Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Mianyang Hongshang Real Estate Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Mianyang Science & Technology City Big Data Technology Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Beijing Changhong Technology Co., Ltd. | Associated enterprise of controlling shareholder |
| Sichuan Hongyu Metal Manufacturing Co., Ltd. | Associated enterprise of other enterprise that have the same controlling shareholder |
| Sichuan Baiku Technology Co., Ltd | Associated enterprise of other enterprise that have the same controlling shareholder |
| Sichuan Hongran Green Energy Co., Ltd. | Associated enterprise of controlling shareholder |
| Sichuan Changxin Refrigeration Parts Co., Ltd. | Associated enterprise of controlling shareholder |
| Mianyang Highly Electric Co., Ltd. | Associated enterprise of controlling shareholder |
| Sichuan Hongmofang Network Technology Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Qiruik Technology Co., Ltd. | Control by same controlling shareholder and ultimate controller |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
| Other related party | Relationship with the company |
| Changhong Grand-Pro Technology Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Changhong Jihuang Lithium Technology Co., LTD | Control by same controlling shareholder and ultimate controller |
| Sichuan Ansifei Technology Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Changhong Electric Technology Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Hongcheng Construction Co., lTD. | Control by same controlling shareholder and ultimate controller |
| Guangyuan Hongcheng Industrial Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Aiku Technology Co., Ltd. | Control by same controlling shareholder and ultimate controller |
(ii) Related transactions
1. Purchasing commodity
| Related party | Content | Current Year | Approved trading quota | Whether the trading limit is exceeded | Last Year |
| (In 10 thousand yuan) | (In 10 thousand yuan) | ||||
| Sichuan Changhong Molding Technology Co., Ltd | Purchasing commodity | 80,947.69 | 100,000.00 | N | 72,217.32 |
| Sichuan Changxin Refrigeration Parts Co., Ltd. | Purchasing commodity | 53,050.78 | 39,411.46 | ||
| Sichuan Changhong Jijia Fine Co., Ltd. | Purchasing commodity | 45,767.42 | 52,000.00 | N | 36,519.86 |
| Changhong Huayi Compressor Co., Ltd. | Purchasing commodity | 45,173.47 | 48,000.00 | N | 41,883.15 |
| Sichuan Changhong Electric Co., Ltd. | Purchasing commodity | 33,985.13 | 65,000.00 | N | 52,569.68 |
| Sichuan Changhong Package Printing Co., Ltd. | Purchasing commodity | 13,066.04 | 18,000.00 | N | 10,505.94 |
| Sichuan Aichuang Science & Technology Co., Ltd. | Purchasing commodity | 11,551.33 | 13,000.00 | N | 10,843.83 |
| Mianyang Highly Electric Co., Ltd. | Purchasing commodity | 10,109.13 | 21,625.23 | ||
| ChanghongRuba Electric Company (Private) Ltd. | Purchasing commodity | 6,640.82 | 7,078.47 | ||
| Sichuan Changhong Precision Electronics Tech. Co., Ltd. | Purchasing commodity | 2,570.75 | 3,000.00 | N | 1,689.38 |
| Sichuan Changhong Electronic Products Co., Ltd. | Purchasing commodity | 2,546.79 | 3,000.00 | N | 2,376.25 |
| Sichuan Ailink Technology Co., Ltd. | Purchasing commodity | 913.94 | 5,000.00 | N | 2,519.71 |
| Sichuan Changhong Device Technology Co., Ltd | Purchasing commodity | 768.89 | 10,000.00 | N | - |
| Sichuan Aoku Technology Co., Ltd. | Purchasing commodity | 764.15 | 5,000.00 | N | - |
| Sichuan Zhiyijia Network Technology Co., Ltd. | Purchasing commodity | 530.29 | 10,000.00 | N | 1,218.16 |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
| Related party | Content | Current Year | Approved trading quota | Whether the trading limit is exceeded | Last Year |
| Changhong International Holdings (Hong Kong) Co., Ltd. | Purchasing commodity | 510.85 | 8,000.00 | N | 1,017.63 |
| Guangdong Changhong Electronics Co., Ltd. | Purchasing commodity | 417.80 | 10,000.00 | N | 579.57 |
| Hefei Changhong Industrial Co., Ltd. | Purchasing commodity | 394.74 | 10,000.00 | N | 942.42 |
| Chengdu Guigu Environmental Tech. Co., Ltd | Purchasing commodity | 22.19 | 0.18 | ||
| Sichuan Jiahong Industrial Co., Ltd. | Purchasing commodity | 8.25 | 5,000.00 | N | 0.60 |
| Sichuan Changhong New Energy Technology Co., Ltd. | Purchasing commodity | 4.31 | 5,000.00 | N | 2.70 |
| Sichuan Changhong Intelligent Manufacturing Technology Co., Ltd. | Purchasing commodity | 1.62 | 5,000.00 | N | 2.86 |
| Sichuan Changhong International Hotel Co., Ltd. | Purchasing commodity | 1.17 | 5,000.00 | N | 2.00 |
| Sichuan Service Exp. Appliance Service Chain Co., Ltd. | Purchasing commodity | 0.12 | 10,000.00 | N | 5.00 |
| Hunan Grand-Pro Intelligent Tech. Company | Purchasing commodity | 152.35 | |||
| Sichuan Hongran Green Energy Co., Ltd. | Purchasing commodity | 87.93 | |||
| Hefei Changhong New Energy Technology Co., Ltd. | Purchasing commodity | 34.49 | |||
| 081 Electronic Group Co., Ltd. | Purchasing commodity | 4.95 | |||
| Sichuan Changhong Property Service Co., Ltd. | Purchasing commodity | 3.03 | |||
| Sichuan Hongwei Technology Co., Ltd. | Purchasing commodity | 0.32 | |||
| Total | 309,747.67 | 303,294.47 |
2. Accept the services
| Related party | Content | Current Year | Approved trading quota | Whether the trading limit is exceeded | Last Year |
| Sichuan Changhong Minsheng Logistics Co., Ltd. | Accept the services | 616,571,560.92 | 750,000,000.00 | N | 585,263,836.50 |
| Sichuan Service Exp. Appliance Service Chain Co., Ltd. | Accept the services | 300,207,670.49 | 320,000,000.00 | N | 250,718,083.94 |
| Sichuan Changhong Moulding Tech. Co., Ltd. | Accept the services | 21,996,492.76 | 60,000,000.00 | N | 127,233.28 |
| Sichuan Hongxin Software Co., Ltd. | Accept the services | 10,867,739.17 | 60,000,000.00 | N | 10,856,658.91 |
| Sichuan Changhong Technology Seiko Co., Ltd | Accept the services | 10,671,879.96 | 60,000,000.00 | N | 11,830.19 |
| Sichuan Changhong Intelligent Manufacturing Technology Co., Ltd. | Accept the services | 8,889,532.68 | 395,895.95 |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
| Related party | Content | Current Year | Approved trading quota | Whether the trading limit is exceeded | Last Year |
| Sichuan Qiruik Technology Co., Ltd. | Accept the services | 8,525,543.51 | 50,000,000.00 | N | 5,980,909.80 |
| Sichuan Jiahong Industrial Co., Ltd. | Accept the services | 7,421,624.51 | 50,000,000.00 | N | 3,895,237.37 |
| Sichuan Changhong Electric Co., Ltd. | Accept the services | 4,882,453.51 | 60,000,000.00 | N | 5,745,731.73 |
| Sichuan Changhong Electronics Holding Group Co., Ltd. | Accept the services | 1,954,498.90 | 50,000,000.00 | N | 1,681,313.86 |
| Guangdong Changhong Electronics Co., Ltd. | Accept the services | 1,223,519.69 | 60,000,000.00 | N | 1,128,280.15 |
| Sichuan Aichuang Technology Co., Ltd. | Accept the services | 1,069,829.75 | 50,000,000.00 | N | 131,378.07 |
| Sichuan Changhong International Hotel Co., Ltd. | Accept the services | 351,928.96 | 50,000,000.00 | N | 217,834.37 |
| Sichuan Zhiyijia Network Technology Co., Ltd. | Accept the services | 155,202.18 | 60,000,000.00 | N | -465,679.53 |
| Chengdu Guigu Environmental Tech. Co., Ltd | Accept the services | 124,778.76 | |||
| Sichuan Changhong Property Service Co., Ltd. | Accept the services | 114,522.42 | 50,000,000.00 | N | 707,185.86 |
| Sichuan Changhong Device Technology Co., Ltd | Accept the services | 81,652.50 | 60,000,000.00 | N | |
| Sichuan Changhong Intelligent Manufacturing Technology Co., Ltd. | Accept the services | 73,130.53 | 50,000,000.00 | N | 748,609.37 |
| Chengdu Guigu Environmental Tech. Co., Ltd | Accept the services | 59,745.71 | 50,000,000.00 | N | 56,580.19 |
| Sichuan Changhong Network Technology Co., Ltd. | Accept the services | 24,891.99 | 60,000,000.00 | N | |
| Changhong International Holdings (Hong Kong) Co., Ltd. | Accept the services | 5,988,668.60 | |||
| Sichuan Hongwei Technology Co., Ltd. | Accept the services | 1,521,897.41 | |||
| Guangyuan Changhong Electric Technology Co., Ltd. | Accept the services | 1,023,131.47 | |||
| Sichuan Changhong Electric Produst Co., Ltd. | Accept the services | 126,956.03 | |||
| Orion.PDP.Co.,ltd | Accept the services | 125,271.39 |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
| Related party | Content | Current Year | Approved trading quota | Whether the trading limit is exceeded | Last Year |
| Sichuan Changhong International Travel Service Co., Ltd. | Accept the services | 26,557.92 | |||
| Total | 995,268,198.90 | 876,013,402.83 |
3. Sales of goods
| Related party | Content | Current Period | Last Period |
| (in 10 thousand Yuan) | (in 10 thousand Yuan) | ||
| CHANGHONG(HK)TRADINGLIMITED | Sales of goods | 35,986.86 | 29,876.00 |
| CHANGHONGELECTRIC(AUSTRALIA)PTY.LTD. | Sales of goods | 16,831.82 | 12,752.56 |
| Changhong International Holdings (Hong Kong) Co., Ltd. | Sales of goods | 10,146.95 | 16,437.09 |
| Orion.PDP.Co.,ltd | Sales of goods | 5,156.73 | 3,967.89 |
| CHANGHONG ELECTRIC MIDDLE EAST FZCO | Sales of goods | 1,725.97 | 349.94 |
| Changhong Europe Electric s.r.o | Sales of goods | 1,376.83 | 7,082.16 |
| ChanghongRuba Electric Company (Private) Ltd. | Sales of goods | 1,032.08 | 3,262.43 |
| Sichuan Service Exp. Appliance Service Chain Co., Ltd. | Sales of goods | 704.59 | 655.49 |
| Hong Yuan Ground Energy Heat Tech. Co., Ltd. | Sales of goods | 571.43 | 2,426.82 |
| Sichuan Changhong Minsheng Logistics Co., Ltd. | Sales of goods | 254.19 | 32.82 |
| Yuanxin Financial Lease Co., Ltd. | Sales of goods | 245.87 | |
| Sichuan Tianyou Guigu Technology Co., Ltd. | Sales of goods | 206.70 | 114.92 |
| Sichuan Changhong Electronic Co., Ltd. | Sales of goods | 138.77 | 426.60 |
| Leyijia Chain Management Co., Ltd. | Sales of goods | 125.36 | 53.10 |
| Sichuan Changhong Model Technology Co., Ltd. | Sales of goods | 68.44 | 20,509.82 |
| Sichuan Baiku Technology Co., Ltd. | Sales of goods | 64.39 | |
| Sichuan Changhong Gerun Environmental Protection Tech. Co., Ltd. | Sales of goods | 53.43 | 175.73 |
| Sichuan Changhong Electric Holding Group Co., Ltd. | Sales of goods | 42.38 | 18.06 |
| Sichuan Huafeng Technology Co., Ltd. | Sales of goods | 35.31 | |
| Sichuan Aiku Technology Co., Ltd. | Sales of goods | 23.01 | |
| Guangyuan Electric Technology Co., Ltd. | Sales of goods | 15.00 | 15.43 |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
| Related party | Content | Current Period | Last Period |
| Guangdong Changhong Electric Co., Ltd. | Sales of goods | 10.59 | 33.63 |
| Sichuan Changhong Appliance Technology Co., Ltd. | Sales of goods | 10.46 | 71.11 |
| Sichuan Changhong Real Estate Co., Ltd. | Sales of goods | 9.72 | 6.63 |
| Changhong Huayi Compressor Co., Ltd. | Sales of goods | 7.26 | 3.76 |
| ichuan Changhong Technology Seiko Co., Ltd | Sales of goods | 6.20 | 4,883.00 |
| Mianyang Hongshang Real Estate Co., Ltd. | Sales of goods | 2.56 | |
| Sichuan Ansifei Technology Co., Ltd. | Sales of goods | 2.42 | 12.51 |
| Sichuan Aichuang Technology Co., Ltd. | Sales of goods | 2.19 | 23.03 |
| Sichuan Qiruk Technology Co., Ltd. | Sales of goods | 0.31 | |
| Sichuan Hongxin Software Co., Ltd. | Sales of goods | 0.11 | 12.11 |
| Sichuan Changxin Refrigeration Parts Co., Ltd | Sales of goods | 9,921.49 | |
| Sichuan Changhong Jihuang Lithium Technology Co., Ltd | Sales of goods | 126.35 | |
| Changhong Gelanbo Technology Co., Ltd. | Sales of goods | 123.88 | |
| PT.CHANGHONGELECTRICINDONESIA | Sales of goods | 27.80 | |
| Sichuan Changhong Source Co., Ltd. | Sales of goods | 16.99 | |
| Hefei Changhong Industrial Co., Ltd. | Sales of goods | 7.89 | |
| Sichuan Changhong Precision Electronic Technology Co., Ltd | Sales of goods | 1.69 | |
| Sichuan Changhong Intelligent Manufacturing Technology Co., Ltd | Sales of goods | 1.41 | |
| Beijing Changhong Technology Co., Ltd. | Sales of goods | 0.98 | |
| Sichuan Hongmofang Network Technology Co., Ltd. | Sales of goods | 0.49 | |
| Sichuan Changhong Network Technolgoy Co., Ltd. | Sales of goods | 0.39 | |
| 081 Electronic Group Co., Ltd. | Sales of goods | 0.08 | |
| Total | 758,378.40 | 763,488.11 |
4. Providing services
| Related party | Content | Current Year | Last Year |
| Yuanxin Financial Lease Co., Ltd. | Provide the services | 2,843,225.41 | 493,408.67 |
| Sichuan Changhong Electric Co., Ltd. | Providing services | 2,271,754.66 | 4,177,122.00 |
| Changhong Huayi Compressor Co., Ltd. | Providing services | 2,049,559.70 | 1,245,677.91 |
| Sichuan Service Exp. Appliance Service Chain Co., Ltd. | Provide the services | 1,977,927.75 | 7,200.00 |
| Sichuan Zhiyijia Network Technology Co., Ltd. | Provide the services | 952,679.40 | 22,279.24 |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
| Related party | Content | Current Year | Last Year |
| Guangdong Changhong Electronics Co., Ltd. | Provide the services | 819,840.18 | 491,029.63 |
| Sichuan Huafeng Technology Co., Ltd. | Provide the services | 442,842.31 | 13,205.66 |
| Sichuan Changhong Model Technology Co., Ltd. | Providing services | 339,008.37 | 193,737.60 |
| Sichuan Changhong Electronics Holding Group Co., Ltd. | Provide the services | 311,964.22 | -10,800.00 |
| Chengdu Guigu Environmental Tech. Co., Ltd | Provide the services | 263,625.23 | 31,941.00 |
| Sichuan Changxin Refrigeration Parts Co., Ltd. | Provide the services | 229,524.66 | 120,655.05 |
| Sichuan Changhong Minsheng Logistics Co., Ltd. | Provide the services | 215,817.23 | 261,996.34 |
| Sichuan Changhong Property Service Co., Ltd. | Provide the services | 171,595.00 | 85,797.50 |
| Sichuan Aiku Technology Co., Ltd. | Provide the services | 156,191.31 | |
| Sichuan Changhong Appliance Technology Co., Ltd. | Provide the services | 93,760.05 | 90,613.21 |
| 081 Electronic Group Co., Ltd. | Provide the services | 93,124.78 | 47,230.97 |
| Mianyang Huafeng Hulian Technology Co., Ltd. | Provide the services | 88,192.89 | |
| Sichuan Changhong Technology Seiko Co., Ltd | Provide the services | 83,244.16 | 271,359.98 |
| Sichuan Changhong Jihuang Lithium Technology Co., Ltd | Provide the services | 57,269.68 | 1,088,990.83 |
| Sichuan Hongwei Technology Co., Ltd. | Provide the services | 46,490.57 | 1,440.00 |
| Guangyuan Hongcheng Industrial Co., Ltd. | Provide the services | 45,871.56 | |
| Sichuan Changhong Electronics Holding Group Co., Ltd. | Provide the services | 34,555.53 | 79,350.88 |
| Sichuan Changhong Precision Electronic Technology Co., Ltd | Provide the services | 4,050.00 | 5,084.91 |
| Sichuan Changhong Electric Product Co., Ltd. | Provide the services | 3,600.00 | 11,021.81 |
| Hefei Changhong Industrial Co., Ltd. | Provide the services | 3,457.50 | 707.50 |
| Sichuan Qiruik Technology Co., Ltd. | Provide the services | 1,332.00 | |
| Changhong Gelanbo Technology Co., Ltd. | Provide the services | 1,165,255.05 | |
| Sichuan Changhong Network Technolgoy Co., Ltd. | Provide the services | 610,337.12 | |
| Hong Yuan Ground Energy Heat Tech. Co., Ltd. | Provide the services | 216,981.14 | |
| Sichuan Changhong Electric Technology Co., Ltd. | Provide the services | 94,339.62 | |
| Sichuan Changhong Gerun Environmental Protection Tech. Co., Ltd. | Provide the services | 9,433.96 | |
| Sichuan Ailian Technology Co., Ltd. | Provide the services | 73.58 | |
| Sichuan Ansifei Technology Co., Ltd. | Provide the services | -2,685.82 | 110,932.11 |
| Sichuan Aichuang Technology Co., Ltd. | Provide the services | -242,246.63 | 1,983,316.06 |
| Total | 13,355,571.70 | 12,919,719.33 |
Businesses between the Company and its connected persons are generally conducted under market operation rulesas if they were the same as other business counterparties. For price of sale or purchase and provision of other laborservice between the Company and its related parties, the state pricing is applicable if the pricing do exists; in caseof absence of such state pricing, price is determined under market price; in case of absence of such market price,price is determined by both parties at actual cost plus reasonable expenses; for some special services, the price ofwhich cannot be determined under the rule of cost plus expense, the price shall be determined by both parties bynegotiation.
5. Related rental
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
(1) Rent out
| Lessor | Lessee | Type of assets | Leasing income in Current Period | Leasing income in Last Period |
| Changhong Meiling | Sichuan Changhong Moulding Tech. Co., Ltd. | Apartments, warehouses, factories | 2,666,842.20 | 2,394,148.57 |
| Changhong Meiling | Sichuan Changhong Jijia Fine Co., Ltd. | warehouse, apartment, forklift, warehouse | 893,341.66 | 885,768.19 |
| Changhong Meiling | Hefei Changhong Industrial Co., Ltd. | Apartments, warehouses, forklifts | 611,142.15 | 268,530.52 |
| Changhong Meiling | Sichuan Changhong Minsheng Logistics Co., Ltd. | apartment, office | 181,355.96 | 214,858.71 |
| Changhong Meiling | Sichuan Zhiyijia Network Technology Co., Ltd. | Apartment | 188,256.88 | 188,256.88 |
| Changhong Meiling | Sichuan Service Exp. Appliance Service Chain Co., Ltd. | Apartments, Offices, Forklifts | 184,560.00 | 192,630.48 |
| Changhong Meiling | Sichuan Changhong Precision Electronic Technology Co., Ltd | Apartments | 63,600.00 | 49,200.00 |
| Changhong Meiling | Sichuan Aichuang Science & Technology Co., Ltd. | Warehouse | 51,093.26 | 37,519.68 |
| Changhong Meiling | Sichuan Ailink Technology Co., Ltd. | Warehouse | 1,877.88 | 2,549.43 |
| Changhong Meiling | Sichuan Aoku Technology Co., Ltd. | Warehouse | 9,467.90 | |
| Zhongke Meiling | Sichuan Changhong Minsheng Logistics Co., Ltd. | Workshop | 783,911.94 | |
| Jiangxi Meiling | Sichuan Changhong Moulding Tech. Co., Ltd. | Workshop | 822,288.36 | 822,288.36 |
| Jiangxi Meiling | Sichuan Changhong Minsheng Logistics Co., Ltd. | Warehouse Office | 9,142.86 | 9,142.86 |
| Jiangxi Meiling | Changhong Huayi Compressor Co., Ltd. | Warehouse | 4,457.14 | 4,457.14 |
| Jiangxi Meiling | Hefei Changhong Industrial Co., Ltd. | Warehouse | 1,485.71 | 2,971.43 |
| Jiangxi Meiling | Sichuan Aichuang Science & Technology Co., Ltd. | Warehouse | 8,914.29 | 11,885.71 |
| Jiangxi Meiling | Sichuan Changhong Jijia Fine Co., Ltd. | Workshop | 7,428.57 | |
| Jiangxi Meiling | Sichuan Ailink Technology Co., Ltd. | Warehouse | 742.86 | |
| Changhong Air-conditioner | Sichuan Changhong Jijia Fine Co., Ltd. | Workshop | 3,601,311.97 | 4,297,682.47 |
| Changhong Air-conditioner | Sichuan Changhong Minsheng Logistics Co., Ltd. | WorkshopOffice | 5,329,999.71 | 6,597,422.88 |
| Changhong Air-conditioner | Sichuan Changhong Electric Co., Ltd. | Workshop | 1,786,799.14 | 3,023,158.87 |
| Changhong Air-conditioner | Sichuan Changxin Refrigeration Parts Co., Ltd. | Processing equipment of U | 206,666.67 | 200,000.00 |
| Changhong Air-conditioner | Chengdu Guigu Environmental Tech. Co., Ltd | House and buildings | 28,403.67 | 28,403.67 |
| Changhong Air-conditioner | Sichuan Changhong Electric Co., Ltd. | plant, equipment | 19,563.84 |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
| Lessor | Lessee | Type of assets | Leasing income in Current Period | Leasing income in Last Period |
| Changhong Air-conditioner | Sichuan Huafeng Enterprise Group Co., Ltd. | Conference Room | 917.43 | |
| Zhongshan Changhong | Sichuan Changhong Electric Co., Ltd. | living area | 64,800.00 | 58,964.52 |
| Zhongshan Changhong | Sichuan Changhong Precision Electronics Tech. Co., Ltd. | living area | 84,000.00 | 63,000.00 |
| Zhongshan Changhong | Sichuan Changhong Minsheng Logistics Co., Ltd. | Parts of the office building rent-out | 44,297.16 | 44,297.16 |
| Zhongshan Changhong | Sichuan Changhong Device Technology Co., Ltd. | living area | - | 3,735.44 |
| Zhongshan Changhong | Guangdong Changhong Electronics Co., Ltd. | living area | 14,221.47 | 50,928.93 |
| Ridian Technology | Sichuan Changhong Device Technology Co., Ltd. | Workshop | 2,147,149.80 | 2,160,845.66 |
| Ridian Technology | Sichuan Changhong Minsheng Logistics Co., Ltd. | Workshop | 47,314.29 | |
| Ridian Technology | Sichuan Hongwei Technology Co., Ltd. | Workshop | 47,314.29 | |
| Total | 19,079,782.54 | 22,445,534.08 |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
(2)Lessee of related parties
| Lessor | Lessee | Type of assets | Rental charges for short-term and low-value assets (if any) | Variable lease payments not included in lease liabilities measurement (if any) | Rent paid | Interest expenses on lease liabilities assumed | Increased use right assets | |||||
| Amount of current period | Amount of previous period | Amount of current period | Amount of previous period | Amount of current period | Amount of previous period | Amount of current period | Amount of previous period | Amount of current period | Amount of previous period | |||
| Hefei Changhong Industrial Co., Ltd. | Changhong Meiling | Workshop leasing | 908,010.50 | 132,039.57 | 1,019,690.31 | 178,103.34 | 18,927,928.69 | |||||
| Sichuan Changhong Electronics Holding Group Co., Ltd. | Changhong Air-conditioner | Staff dormitory | 127,468.80 | 176,789.29 | ||||||||
| Sichuan Jiahong Industrial Co., Ltd. | Changhong Air-conditioner | Staff dormitory | 464,805.24 | 183,993.72 | ||||||||
| Sichuan Changhong Electric Co., Ltd. | Changhong Air-conditioner | VISA Laboratories | 341,178.04 | 341,178.01 | ||||||||
| Sichuan Changhong | Changhong Air- | Staff dormitory | 3,000.00 | |||||||||
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
| Lessor | Lessee | Type of assets | Rental charges for short-term and low-value assets (if any) | Variable lease payments not included in lease liabilities measurement (if any) | Rent paid | Interest expenses on lease liabilities assumed | Increased use right assets | |||||
| Amount of current period | Amount of previous period | Amount of current period | Amount of previous period | Amount of current period | Amount of previous period | Amount of current period | Amount of previous period | Amount of current period | Amount of previous period | |||
| Property Service Co., Ltd. | conditioner | |||||||||||
| Chengdu Changhong Electronic Technology Co., Ltd. | Hongmei Intelligent | Office | 603,257.97 | 639,605.43 | 88,127.19 | 48,658.27 | 1,911,007.15 | |||||
| Guangdong Changhong Electronics Co., Ltd. | Hong yuan Zhongshan | Staff dormitory | 104,751.85 | 91,367.95 | ||||||||
| Sichuan Changhong Minsheng Logistics Co., Ltd. | Hong yuan Zhongshan | Warehouse rental | 73,962.22 | |||||||||
| Guangdong Changhong Electronics Co., Ltd. | Zhongshan Changhong | Staff dormitory | 903,316.49 | 1,015,654.71 | ||||||||
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
| Lessor | Lessee | Type of assets | Rental charges for short-term and low-value assets (if any) | Variable lease payments not included in lease liabilities measurement (if any) | Rent paid | Interest expenses on lease liabilities assumed | Increased use right assets | |||||
| Amount of current period | Amount of previous period | Amount of current period | Amount of previous period | Amount of current period | Amount of previous period | Amount of current period | Amount of previous period | Amount of current period | Amount of previous period | |||
| Sichuan Changhong Electric Co., Ltd. | Mianyang Meiling | Workshop leasing | 2,904,844.69 | 2,447,985.23 | 378,459.23 | 813,469.79 | 701,858.10 | 13,760,631.85 | ||||
| Sichuan Jiahong Industrial Co., Ltd. | Mianyang Meiling | Staff dormitory | 34,379.52 | 21,239.84 | ||||||||
| Sichuan Changhong Electronics Holding Group Co., Ltd. | Mianyang Meiling | Staff dormitory | 4,363.60 | |||||||||
| Sichuan Changhong Property Service Co., Ltd. | Mianyang Meiling | Flower rental | 2,317.92 | |||||||||
| Changhong Huayi Compressor | Jiangxi Meiling | Staff dormitory | 140,483.38 | 41,792.55 | ||||||||
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
| Lessor | Lessee | Type of assets | Rental charges for short-term and low-value assets (if any) | Variable lease payments not included in lease liabilities measurement (if any) | Rent paid | Interest expenses on lease liabilities assumed | Increased use right assets | |||||
| Amount of current period | Amount of previous period | Amount of current period | Amount of previous period | Amount of current period | Amount of previous period | Amount of current period | Amount of previous period | Amount of current period | Amount of previous period | |||
| Co., Ltd. | ||||||||||||
| Guangdong Changhong Electronics Co., Ltd. | Ridian Technology | Staff dormitory | 132,045.20 | 126,347.33 | ||||||||
| Chengdu Changhong Electronic Technology Co., Ltd. | Hongmei Intelligent | Office | 22,542.67 | |||||||||
| Total | 2,270,971.19 | 2,082,007.14 | 4,416,113.16 | 3,219,630.23 | 1,486,276.73 | 1,040,231.40 | 701,858.10 | 34,599,567.69 | ||||
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
6. Related guarantee
| Secured party | Sponsored party | Maximum guarantee amount | Start | Date due | Completed (Y/N) |
| (in 10 thousand Yuan) | |||||
| Changhong Meiling | Meiling Group | 5,000.00 | 2021-3-5 | 2022-3-5 | Yes |
| Changhong Meiling | Meiling Group | 5,000.00 | 2022-4-18 | 2023-4-18 | No |
| Changhong Meiling | Jiangxi Meiling | 10,000.00 | 2021-7-8 | 2022-7-8 | Yes |
| Changhong Meiling | Changhong air-conditioner | 8,000.00 | 2022-3-18 | 2023-3-17 | No |
| Changhong Meiling | Changhong air-conditioner | 5,000.00 | 2021-9-24 | 2022-9-24 | No |
| Changhong Meiling | Changhong air-conditioner | 15,000.00 | 2021-12-7 | 2022-12-6 | No |
| Changhong Meiling | Changhong air-conditioner | 30,000.00 | 2022-4-18 | 2023-4-18 | No |
| Changhong Meiling | Ridian Technology | 4,000.00 | 2022-7-7 | 2023-7-7 | No |
| Changhong Meiling | Ridian Technology | 4,000.00 | 2021-9-16 | 2022-9-15 | Yes |
| Changhong Meiling | Ridian Technology | 3,000.00 | 2022-3-25 | 2023-3-25 | No |
| Changhong Meiling | Ridian Technology | 4,000.00 | 2021-3-31 | 2022-3-31 | Yes |
| Changhong Meiling | Ridian Technology | 3,000.00 | 2021-8-9 | 2022-8-8 | Yes |
| Changhong Meiling | Ridian Technology | 2,000.00 | 2022-10-25 | 2023-10-24 | No |
| Changhong Meiling | Ridian Technology | 3,500.00 | 2022-11-10 | 2023-11-9 | No |
| Changhong Meiling | Zhongshan Changhong | 5,000.00 | 2021-7-22 | 2022-7-22 | Yes |
| Changhong Meiling | Zhongshan Changhong | 5,000.00 | 2021-8-24 | 2022-8-23 | Yes |
| Changhong Meiling | Zhongshan Changhong | 15,000.00 | 2021-8-9 | 2022-8-8 | Yes |
| Changhong Meiling | Zhongshan Changhong | 2,000.00 | 2022-2-15 | 2023-2-14 | No |
| Changhong Meiling | Zhongshan Changhong | 18,000.00 | 2022-4-22 | 2023-4-22 | No |
| Changhong Meiling | Zhongshan Changhong | 6,000.00 | 2022-3-15 | 2023-3-15 | No |
| Changhong Meiling | Zhongshan Changhong | 10,000.00 | 2022-4-22 | 2023-4-22 | No |
| Changhong Meiling | Zhongshan Changhong | 7,000.00 | 2022-3-28 | 2023-3-29 | No |
| Changhong Meiling | Zhongshan Changhong | 13,000.00 | 2022-6-16 | 2023-6-16 | No |
| Changhong Meiling | Zhongshan Changhong | 20,000.00 | 2021-4-8 | 2022-3-18 | No |
| Changhong Meiling | Zhongshan Changhong | 13,000.00 | 2021-3-3 | 2022-3-3 | No |
| Changhong Meiling | Zhongshan Changhong | 20,000.00 | 2021-3-30 | 2022-3-30 | Yes |
| Changhong Meiling | Zhongshan Changhong | 10,000.00 | 2021-5-25 | 2022-5-25 | No |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
| Secured party | Sponsored party | Maximum guarantee amount | Start | Date due | Completed (Y/N) |
| (in 10 thousand Yuan) | |||||
| Changhong Meiling | Zhongshan Changhong | 9,000.00 | 2021-3-15 | 2022-3-15 | Yes |
| Changhong Meiling | Zhongshan Changhong | 18,000.00 | 2021-3-29 | 2022-3-29 | No |
| Changhong Meiling | Zhongshan Changhong | 20,000.00 | 2022-7-2 | 2023-7-2 | No |
| Changhong Meiling | Zhongshan Changhong | 5,000.00 | 2022-8-19 | 2023-8-19 | No |
| Changhong Meiling | Zhongshan Changhong | 15,000.00 | 2022-8-15 | 2023-8-14 | No |
| Changhong Meiling | Zhongshan Changhong | 2,000.00 | 2021-7-26 | 2022-7-26 | Yes |
| Changhong Meiling | Meiling Life Appliances | 5,000.00 | 2021-8-18 | 2022-8-8 | Yes |
| Changhong Meiling | Meiling Life Appliances | 5,000.00 | 2022-9-22 | 2023-9-21 | No |
| Changhong Meiling | Meiling Life Appliances | 2,000.00 | 2021-10-13 | 2022-10-12 | Yes |
| Changhong Meiling | Meiling Life Appliances | 4,000.00 | 2021-12-9 | 2022-11-2 | No |
| Changhong Meiling | Meiling Life Appliances | 3,000.00 | 2022-1-26 | 2023-1-26 | No |
| Changhong Meiling | Meiling Life Appliances | 5,000.00 | 2022-3-21 | 2022-8-21 | Yes |
| Changhong Meiling | Meiling Life Appliances | 5,000.00 | 2022-3-16 | 2023-3-16 | No |
| Changhong Meiling | Meiling Life Appliances | 1,000.00 | 2022-9-8 | 2023-9-8 | No |
| Changhong Meiling | Meiling Life Appliances | 500.00 | 2022-8-26 | 2023-8-26 | No |
| Changhong Meiling | Meiling Life Appliances | 5,000.00 | 2021-7-29 | 2022-7-28 | Yes |
| Changhong Meiling | Meiling Life Appliances | 5,000.00 | 2022-10-26 | 2023-10-25 | No |
| Changhong Meiling | Meiling Life Appliances | 4,500.00 | 2022-12-8 | 2023-10-24 | No |
| Changhong Meiling | Zhongke Meiling | 5,000.00 | 2021-5-24 | 2022-5-24 | Yes |
| Changhong Meiling | Zhongke Meiling | 6,000.00 | 2021-9-22 | 2022-9-22 | Yes |
| Changhong Meiling | Zhongke Meiling | 2,000.00 | 2022-9-20 | 2023-1-27 | No |
| Changhong Meiling | Zhongke Meiling | 5,000.00 | 2022-11-14 | 2023-6-19 | No |
| Zhongke Meiling | Anhui Tuoxing | 500.00 | 2021-4-1 | 2022-4-1 | Yes |
| Zhongke Meiling | Anhui Tuoxing | 500.00 | 2022-6-27 | 2023-6-27 | No |
| Counter guarantee: | |||||
| Meiling Group | Changhong Meiling | 5,000.00 | 2021-3-5 | 2022-3-5 | Yes |
| Meiling Group | Changhong Meiling | 5,000.00 | 2022-4-18 | 2023-4-18 | No |
| Jiangxi Meiling | Changhong Meiling | 10,000.00 | 2021-7-8 | 2022-7-8 | Yes |
| Changhong air-conditioner | Changhong Meiling | 8,000.00 | 2022-3-18 | 2023-3-17 | No |
| Changhong air-conditioner | Changhong Meiling | 5,000.00 | 2021-9-24 | 2022-9-24 | No |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
| Secured party | Sponsored party | Maximum guarantee amount | Start | Date due | Completed (Y/N) |
| (in 10 thousand Yuan) | |||||
| Changhong air-conditioner | Changhong Meiling | 15,000.00 | 2021-12-7 | 2022-12-6 | No |
| Changhong air-conditioner | Changhong Meiling | 30,000.00 | 2022-4-18 | 2023-4-18 | No |
| Ridian Technology | Changhong Meiling | 4,000.00 | 2022-7-7 | 2023-7-7 | No |
| Ridian Technology | Changhong Meiling | 4,000.00 | 2021-9-16 | 2022-9-15 | Yes |
| Ridian Technology | Changhong Meiling | 3,000.00 | 2022-3-25 | 2023-3-25 | No |
| Ridian Technology | Changhong Meiling | 4,000.00 | 2021-3-31 | 2022-3-31 | Yes |
| Ridian Technology | Changhong Meiling | 3,000.00 | 2021-8-9 | 2022-8-8 | Yes |
| Ridian Technology | Changhong Meiling | 2,000.00 | 2022-10-25 | 2023-10-24 | No |
| Ridian Technology | Changhong Meiling | 3,500.00 | 2022-11-10 | 2023-11-9 | No |
| Zhongshan Changhong | Changhong Meiling | 5,000.00 | 2021-7-22 | 2022-7-22 | Yes |
| Zhongshan Changhong | Changhong Meiling | 5,000.00 | 2021-8-24 | 2022-8-23 | No |
| Zhongshan Changhong | Changhong Meiling | 15,000.00 | 2021-8-9 | 2022-8-8 | Yes |
| Zhongshan Changhong | Changhong Meiling | 2,000.00 | 2022-2-15 | 2023-2-14 | No |
| Zhongshan Changhong | Changhong Meiling | 18,000.00 | 2022-4-22 | 2023-4-22 | Yes |
| Zhongshan Changhong | Changhong Meiling | 6,000.00 | 2022-3-15 | 2023-3-15 | No |
| Zhongshan Changhong | Changhong Meiling | 10,000.00 | 2022-4-22 | 2023-4-22 | No |
| Zhongshan Changhong | Changhong Meiling | 7,000.00 | 2022-3-28 | 2023-3-29 | No |
| Zhongshan Changhong | Changhong Meiling | 13,000.00 | 2022-6-16 | 2023-6-16 | No |
| Zhongshan Changhong | Changhong Meiling | 20,000.00 | 2021-4-8 | 2022-3-18 | Yes |
| Zhongshan Changhong | Changhong Meiling | 13,000.00 | 2021-3-3 | 2022-3-3 | No |
| Zhongshan Changhong | Changhong Meiling | 20,000.00 | 2021-3-30 | 2022-3-30 | No |
| Zhongshan Changhong | Changhong Meiling | 10,000.00 | 2021-5-25 | 2022-5-25 | Yes |
| Zhongshan Changhong | Changhong Meiling | 9,000.00 | 2021-3-15 | 2022-3-15 | Yes |
| Zhongshan Changhong | Changhong Meiling | 18,000.00 | 2021-3-29 | 2022-3-29 | Yes |
| Zhongshan Changhong | Changhong Meiling | 20,000.00 | 2022-7-2 | 2023-7-2 | No |
| Zhongshan Changhong | Changhong Meiling | 5,000.00 | 2022-8-19 | 2023-8-19 | No |
| Zhongshan Changhong | Changhong Meiling | 15,000.00 | 2022-8-15 | 2023-8-14 | No |
| Meiling Life Appliances | Changhong Meiling | 2,000.00 | 2021-7-26 | 2022-7-26 | Yes |
| Meiling Life Appliances | Changhong Meiling | 5,000.00 | 2021-8-18 | 2022-8-8 | Yes |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
| Secured party | Sponsored party | Maximum guarantee amount | Start | Date due | Completed (Y/N) |
| (in 10 thousand Yuan) | |||||
| Meiling Life Appliances | Changhong Meiling | 5,000.00 | 2022-9-22 | 2023-9-21 | No |
| Meiling Life Appliances | Changhong Meiling | 2,000.00 | 2021-10-13 | 2022-10-12 | Yes |
| Meiling Life Appliances | Changhong Meiling | 4,000.00 | 2021-12-9 | 2022-11-2 | No |
| Meiling Life Appliances | Changhong Meiling | 3,000.00 | 2022-1-26 | 2023-1-26 | No |
| Meiling Life Appliances | Changhong Meiling | 5,000.00 | 2022-3-21 | 2022-8-21 | Yes |
| Meiling Life Appliances | Changhong Meiling | 5,000.00 | 2022-3-16 | 2023-3-16 | No |
| Meiling Life Appliances | Changhong Meiling | 1,000.00 | 2022-9-8 | 2023-9-8 | No |
| Meiling Life Appliances | Changhong Meiling | 500.00 | 2022-8-26 | 2023-8-26 | No |
| Meiling Life Appliances | Changhong Meiling | 5,000.00 | 2021-7-29 | 2022-7-28 | Yes |
| Meiling Life Appliances | Changhong Meiling | 5,000.00 | 2022-10-26 | 2023-10-25 | No |
| Meiling Life Appliances | Changhong Meiling | 4,500.00 | 2022-12-8 | 2023-10-24 | No |
| Zhongke Meiling | Changhong Meiling | 5,000.00 | 2021-5-24 | 2022-5-24 | Yes |
| Zhongke Meiling | Changhong Meiling | 6,000.00 | 2021-9-22 | 2022-9-22 | Yes |
| Zhongke Meiling | Changhong Meiling | 2,000.00 | 2022-9-20 | 2023-1-27 | No |
| Zhongke Meiling | Changhong Meiling | 5,000.00 | 2022-11-14 | 2023-6-19 | No |
| Anhui Tuoxing | Zhongke Meiling | 500.00 | 2021-4-1 | 2022-4-1 | Yes |
| Anhui Tuoxing | Zhongke Meiling | 500.00 | 2022-6-27 | 2023-6-27 | No |
7. Assets transfer and debt reorganization of related parties
| Related party | Type | Current Period | Last Period |
| Sichuan Hongxin Software Co., Ltd. | Purchase and construction of fixed assets | 5,668,396.24 | 3,912,026.22 |
| Sichuan Changhong Electric Holding Group Co., Ltd. | Construction of fixed assets | 2,264,150.94 | |
| Sichuan Changhong Electric Co., Ltd. | Construction of fixed assets | 1,400,000.03 | 1,833,245.49 |
| Sichuan Hongxin Software Co., Ltd. | Purchase of intangible assets | 1,254,943.40 | 141,509.43 |
| Sichuan Changhong Intelligent Manufacturing Technology Co., Ltd. | Purchase and construction of fixed assets | 536,783.19 | 9,990,763.76 |
| Mianyang Science & Technology City Big Data Technology Co., Ltd. | Purchase and construction of fixed assets | 450,367.31 | |
| Sichuan Changhong Jiahua Information Product Co., Ltd. | Purchase and construction of fixed assets | 394,336.28 | |
| Sichuan Qiruik Technology Co., Ltd. | Purchase and construction of fixed assets | 65,575.22 | |
| Sichuan Zhiyijia Network Technology Co., Ltd. | Purchase and construction of fixed assets | 22,384.06 | |
| Guangdong Changhong Electric Co., Ltd. | Purchase and construction of fixed assets | 1,800.00 | 39,157.29 |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
| Related party | Type | Current Period | Last Period |
| Sichuan Hongcheng Construction Engineering Co., ltd | Purchase and construction of fixed assets | 1,950,244.22 | |
| 081 Electronic Group Co., Ltd. | Purchase and construction of fixed assets | 1,064,220.18 | |
| Sichuan Huanyu Industrial Co., Ltd. | Purchase and construction of fixed assets | 366,972.48 | |
| Sichuan Aoku Technology Co., Ltd. | Sale of fixed assets | 121,030.34 | |
| Sichuan Changhong Electric Appliance Co., Ltd | Sale of fixed assets | 339,000.00 | |
| Total | 12,179,767.01 | 19,637,139.07 |
8. Other
| Name of company | Content | Current Period (in 10 thousand Yuan) | Last Period (in 10 thousand Yuan) |
| Yuanxin Financial Lease Co., Ltd. | Financing business | 40,942.87 | 49,202.19 |
9. Related transaction with Changhong Finance Company
(1) Saving balance
| Name of company | Year-end balance | Opening balance | Deposit interest income for the current year |
| Changhong Meiling Co., Ltd. | 1,576,180,731.79 | 1,750,741,958.39 | 50,538,328.67 |
| Sichuan Changhong Air-conditioner Co., Ltd | 975,985,071.65 | 667,374,291.19 | 11,150,106.68 |
| Zhongshan Changhong Electric Co., Ltd | 490,792,121.80 | 472,478,264.48 | 10,354,004.01 |
| Hefei Changhong Meiling Life Appliances Co., Ltd. | 218,066,151.18 | 204,429,613.95 | 6,531,403.16 |
| Ground Energy Heat Pump Tech. (Zhongshan) Co., Ltd. | 112,954,489.66 | 117,428,653.82 | 1,290,050.34 |
| Zhongke Meiling Cryogenic Technology Co., Ltd | 50,619,272.37 | 89,236,818.21 | 2,099,452.15 |
| Changhong Meiling Ridian Technology Co., Ltd. | 33,296,010.27 | 78,870,573.40 | 1,585,833.49 |
| Hebei Hongmao Daily Appliance Technology Co., Ltd. | 6,769,834.89 | 4,185,481.97 | 66,751.41 |
| Hefei Meiling Group Holdings Limited | 207,918.41 | 227,396.51 | 15,567.21 |
| Anhui Tuoxing Technology Co., Ltd. | 84,076.99 | 58,438.14 | 2,182.07 |
| Mianyang Meiling Refrigeration Co., Ltd. | 21,366.13 | 26,052.45 | 116.48 |
| Ground Energy Heat Pump Tech. Co., Ltd. | 13,260.69 | 19,795.17 | 72.39 |
| Jiangxi Meiling Electric Appliance Co., Ltd. | 9,626.58 | 9,585.70 | 42.11 |
| Anhui Ling'an medical equipment Co., Ltd. | 0.08 | 0.18 | |
| Total | 3,464,999,932.49 | 3,385,086,923.38 | 83,633,910.35 |
(2) Discounted bills
| Name of company | Bank acceptance | Bank acceptance | Discounting fees |
| Discounted face amount | Discounted amount | Amount of expenses |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
| Name of company | Bank acceptance | Bank acceptance | Discounting fees |
| Changhong Meiling Co., Ltd. | 588,310,334.02 | 583,608,950.21 | 4,701,383.81 |
| Hefei Changhong Meiling Life Appliances Co., Ltd. | 100,357,828.04 | 99,547,412.58 | 810,415.46 |
| Ground Energy Heat Pump Tech. (Zhongshan) Co., Ltd. | 49,319,997.36 | 48,803,378.37 | 516,618.99 |
| Changhong Meiling Ridian Technology Co., Ltd. | 2,761,177.78 | 2,743,359.00 | 17,818.78 |
| Total | 1,983,753,263.19 | 1,972,039,596.27 | 11,713,666.92 |
(3) Issuance of invoices
| Name of company | Issuer | Bill amount | Types |
| Sichuan Changhong Air-conditioner Co., Ltd. | Sichuan Changhong Group Finance Co., Ltd. | 1,620,626,183.52 | Bank acceptance |
| Zhongshan Changhong Electric Co., Ltd. | Sichuan Changhong Group Finance Co., Ltd. | 549,265,335.22 | Bank acceptance |
| Changhong Meiling Co., Ltd. | Sichuan Changhong Group Finance Co., Ltd. | 470,123,204.32 | Bank acceptance |
| Hefei Changhong Meiling Life Appliances Co., Ltd. | Sichuan Changhong Group Finance Co., Ltd. | 132,204,610.85 | Bank acceptance |
| Hefei Meiling Group Holdings Limited | Sichuan Changhong Group Finance Co., Ltd. | 107,338,138.76 | Bank acceptance |
| Ground Energy Heat Pump Tech. (Zhongshan) Co., Ltd. | Sichuan Changhong Group Finance Co., Ltd. | 106,388,816.96 | Bank acceptance |
| Zhongke Meiling Cryogenic Technology Co., Ltd. | Sichuan Changhong Group Finance Co., Ltd. | 73,287,905.02 | Bank acceptance |
| Hebei Hongmao Household Appliance Technology Co., Ltd | Sichuan Changhong Group Finance Co., Ltd. | 20,395,764.16 | Bank acceptance |
| Changhong Meiling Ridian Technology Co., Ltd. | Sichuan Changhong Group Finance Co., Ltd. | 10,835,727.36 | Bank acceptance |
| Anhui Tuoxing Technology Co., Ltd. | Sichuan Changhong Group Finance Co., Ltd. | 723,282.19 | Bank acceptance |
| Total | 3,091,188,968.36 |
(4) Borrowings: Nil
(5) Receivable factoring: Nil
10.Remuneration for key management
| Item | Current Year (In 10 thousand yuan) | Last Year (In 10 thousand yuan) |
| Total remuneration | 767.09 | 803.56 |
| Including: performance incentive fund |
(iii) Come and go balance with related parties
1. Receivable items
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
| Item | Related party | Balance at year-end | Balance at year-begin | ||
| Book balance | Bad debt provision | Book balance | Bad debt provision | ||
| Account receivable | Sichuan Zhiyijia Network Technology Co., Ltd. | 440,238,552.19 | 68,442,866.04 | 590,034,682.52 | |
| Account receivable | CHANGHONG(HK)TRADINGLIMITED | 60,041,559.36 | 14,593,546.00 | ||
| Account receivable | Changhong International Holdings (Hong Kong) Co., Ltd. | 53,357,857.70 | 1,137,912.73 | 35,985,886.24 | 971,525.15 |
| Account receivable | ChanghongRuba Electric Company (Private) Ltd. | 41,456,983.76 | 41,456,983.76 | 39,274,379.69 | 2,991,971.20 |
| Account receivable | CHANGHONGELECTRIC(AUSTRALIA)PTY.LTD. | 24,835,082.91 | 55,903,139.06 | ||
| Account receivable | Orion.PDP.Co.,ltd | 18,169,829.16 | 96,826.72 | 7,923,855.47 | |
| Account receivable | Changhong Europe Electric s.r.o | 9,350,935.09 | 3,382,179.18 | ||
| Account receivable | Sichuan Changhong Electric Appliance Co., Ltd | 944,871.90 | 2,512,637.87 | 569.25 | |
| Account receivable | CHANGHONG ELECTRIC MIDDLE EAST FZCO | 755,784.47 | 120,716.04 | ||
| Account receivable | Sichuan Yuanxin finance lease Co., Ltd. | 545,991.98 | 7,852.07 | ||
| Account receivable | Changhong Huayi Compressor Co., Ltd. | 432,726.15 | 642,605.16 | ||
| Account receivable | Ground Energy Heat Pump Tech. Co., Ltd. | 342,203.53 | 57,322.40 | 1,251,751.92 | 185,439.69 |
| Account receivable | Sichuan Service Exp. Appliance Service Chain Co., Ltd. | 288,033.65 | 67,279.43 | ||
| Account receivable | Sichuan Changhong Electric Holding Group Co., Ltd. | 240,063.11 | |||
| Account receivable | Guangdong Changhong Electric Co., Ltd. | 147,629.98 | 5,239.75 | 248.56 | |
| Account receivable | Leyijia Chain Management Co., Ltd. | 33,928.00 | 141,775.39 | ||
| Account receivable | Sichuan Changhong Model Technology Co., Ltd. | 17,580.00 | |||
| Account receivable | Sichuan Changhong Precision Electronic Technology Co., LTD | 8,204.00 | |||
| Account receivable | Sichuan Changhong Minsheng Logistics Co., Ltd. | 4,305.20 | 6,619.80 | ||
| Account receivable | Sichuan Aichuang Technology Co., Ltd. | 1,595,719.32 | |||
| Account receivable | Changhong Gelanbo Technology Co., Ltd. | 705,000.00 | |||
| Account receivable | Sichuan Ansifei Technology Co., Ltd. | 52,448.00 | |||
| Account receivable | Sichuan Changhong International Hotel Co., Ltd. | 17,064.50 | |||
| Account receivable | Sichuan Hongmofang Network Technology Co., Ltd. | 4,380.00 | |||
| Account paid in advance | Sichuan Changhong Property Service Co., Ltd. | 1,613.85 | |||
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
| Item | Related party | Balance at year-end | Balance at year-begin | ||
| Book balance | Bad debt provision | Book balance | Bad debt provision | ||
| Account paid in advance | Sichuan Ailian Technology Co., Ltd. | 178.22 | 396.02 | ||
| Account paid in advance | Sichuan Changhong Intelligence Technology Co., Ltd. | 925,280.67 | |||
| Account paid in advance | Sichuan Aichuang Technology Co., Ltd. | 684,000.00 | |||
| Account paid in advance | Sichuan Yizhijia Network Technology Co., Ltd. | 67,678.94 | |||
| Account paid in advance | Hefei Changhong Industrial Co., Ltd. | 38,029.06 | |||
| Other account receivable | Changhong Grand-Pro Technology Co., Ltd. | 267,000.00 | 267,000.00 | ||
| Other account receivable | Sichuan Yizhijia Network Technology Co., Ltd. | 200,000.00 | |||
| Other account receivable | Sichuan Changhong Jihuang Lithium Technology Co., Ltd | 129,000.00 | 129,000.00 | ||
| Other account receivable | Sichuan Changhong Electric Appliance Co., Ltd | 60,000.00 | 59,857.21 | ||
| Other account receivable | Sichuan Service Exp. Appliance Service Chain Co., Ltd. | 42,202.32 | 200,000.00 | ||
| Other account receivable | Sichuan Changhong Technology Seiko Co., Ltd | 17,232.50 | 17,232.50 | ||
| Other account receivable | Sichuan Changhong Property Service Co., Ltd. | 1,291.08 | |||
| Other account receivable | Guangdong Changhong Electric Co., Ltd. | 25,899.43 | |||
| Other account receivable | Sichuan Changhong Source Co., Ltd. | 19,200.00 | |||
| Total | 651,930,640.11 | 111,191,911.65 | 756,662,331.24 | 4,149,753.85 | |
2.Payable items
| Item | Related party | Balance at year-end | Balance at year-begin |
| Account payable | Sichuan Changhong Moulding Tech. Co., Ltd. | 102,735,433.69 | 27,523,349.71 |
| Account payable | Sichuan Changhong Jijia Fine Co., Ltd. | 48,446,852.70 | 6,608,580.22 |
| Account payable | Sichuan Changhong Electric Appliance Co., Ltd | 24,051,245.19 | 115,854.26 |
| Account payable | Changhong Huayi Compressor Co., Ltd. | 21,947,957.79 | 3,518,643.94 |
| Account payable | Sichuan Changhong Package Printing Co., Ltd. | 20,626,143.74 | 5,553,060.13 |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
| Item | Related party | Balance at year-end | Balance at year-begin |
| Account payable | Changhong International Holdings (Hong Kong) Co., Ltd. | 17,634,983.97 | 12,718,331.49 |
| Account payable | ChanghongRuba Electric Company (Private) Ltd. | 15,632,092.38 | |
| Account payable | Sichuan Changxin Refrigeration Parts Co., Ltd. | 14,948,871.57 | 7,599,199.65 |
| Account payable | Sichuan Aichuang Science & Technology Co., Ltd. | 13,416,872.06 | 7,290,455.51 |
| Account payable | Sichuan Aoku Technology Co., Ltd. | 8,194,344.79 | |
| Account payable | Mianyang Highly Electric Co., Ltd. | 7,021,268.99 | 8,324,553.75 |
| Account payable | Sichuan Changhong Device Technology Co., Ltd. | 5,027,626.73 | 2,450,482.58 |
| Account payable | Sichuan Changhong Electronic Products Co., Ltd. | 2,892,627.07 | 372,065.37 |
| Account payable | Sichuan Ailian Technology Co., Ltd. | 2,098,307.00 | 3,014,723.46 |
| Account payable | Sichuan Changhong Device Technology Co., Ltd. | 1,728,816.01 | 0.18 |
| Account payable | Sichuan Changhong Minsheng Logistics Co., Ltd. | 1,633,873.17 | 760,136.08 |
| Account payable | Guangdong Changhong Electronics Co., Ltd. | 1,152,123.68 | 1,296,473.51 |
| Account payable | Sichuan Service Exp. Appliance Service Chain Co., Ltd. | 754,759.55 | 449,551.04 |
| Account payable | Sichuan Changhong Intelligent Manufacturing Technology Co., Ltd. | 670,179.94 | 1,911,174.67 |
| Account payable | Sichuan Hongxin Software Co., Ltd. | 490,315.10 | 28,301.89 |
| Account payable | Sichuan Changhong International Hotel Co., Ltd. | 99,873.00 | |
| Account payable | 081 Electronic Group Co., Ltd. | 53,026.90 | 53,196.86 |
| Account payable | Chengdu Guigu Environmental Tech. Co., Ltd | 34,717.86 | |
| Account payable | Sichuan Changhong New Energy Technology Co., Ltd. | 27,120.00 | 8,000.40 |
| Account payable | Sichuan Hongyu Metal Manufacturing Co., Ltd. | 14,662.40 | 14,662.40 |
| Account payable | Hefei Changhong Industrial Co., Ltd. | 13,283.74 | |
| Account payable | Sichuan Changhong Electric Holding Group Co., Ltd. | 12,932.00 | |
| Account payable | Sichuan Zhiyijia Network Technology Co., Ltd. | 8,752.84 | |
| Account payable | Sichuan Qiruik Technology Co., Ltd. | 6,805.20 | |
| Account payable | Sichuan Changhong Source Co., Ltd. | 1,831.62 | 1,870.82 |
| Account payable | Sichuan Jiahong Industrial Co., Ltd. | 300.00 | |
| Account payable | Hunan Grand-Pro Intelligent Tech. Company | 391,610.62 | |
| Account payable | Chengdong Changhong Electric Technology Co., Ltd. | 326,258.23 | |
| Account payable | Sichuan Hongcheng Construction Co., Ltd. | 50,000.00 | |
| Account payable | Hong Yuan Ground Energy Heat Tech. Co., Ltd | 0.01 |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
| Item | Related party | Balance at year-end | Balance at year-begin |
| Account payable | Sichuan Changhong International Travel Service Co., Ltd | 90,789.00 | |
| Contract liability | Sichuan Aichuang Technology Co., Ltd. | 1,961,333.35 | |
| Contract liability | Sichuan Changhong Intelligence Manufacturing Technology Co., Ltd. | 1,120,221.22 | |
| Contract liability | Sichuan Changhong Electric Appliance Co., Ltd | 447,676.77 | 547,736.39 |
| Contract liability | Chengdu Guigu Environmental Tech. Co., Ltd | 171,499.69 | 1,520.35 |
| Contract liability | CHANGHONG ELECTRIC MIDDLE EAST FZCO | 92,761.51 | |
| Contract liability | Sichuan Baiku Technology Co., Ltd. | 71,396.02 | |
| Contract liability | Leyijia Chain Management Co., Ltd. | 70,485.08 | 828,419.67 |
| Contract liability | Sichuan Qisai Microelectronic Co., Ltd. | 65,599.81 | |
| Contract liability | Yibin Hongxing Electric Co., Ltd. | 43,362.83 | |
| Contract liability | Hong Yuan Ground Energy Heat Tech. Co., Ltd | 39,343.58 | 41,894.81 |
| Contract liability | Sichuan Changhong Source Co., Ltd | 27,300.88 | |
| Contract liability | Sichuan Service Exp. Appliance Service Chain Co., Ltd. | 10,174.94 | 303,764.99 |
| Contract liability | Sichuan Changhong Electric Holding Group Co., Ltd. | 4,495.58 | |
| Contract liability | Sichuan Anshifei Technology Co., Ltd. | 2,736.19 | |
| Contract liability | CHANGHONG(HK)TRADINGLIMITED | 893.51 | 817.96 |
| Contract liability | 081 Electronic Group Co., Ltd. | 22.61 | 22.61 |
| Contract liability | Sichuan Changhong International Hotel Co., Ltd | 0.88 | |
| Contract liability | Guangyuan Changhong Electric Technology Co., Ltd. | 0.03 | |
| Contract liability | Sichuan Aoku Technology Co., Ltd. | 358,528.90 | |
| Contract liability | Sichuan Changhong Device Technology Co., Ltd. | 59,317.08 | |
| Contract liability | Guangyuan Hongcheng Industrial Co., Ltd. | 22,935.78 | |
| Contract liability | Sichuan Changhong Minsheng Logistics Co., Ltd. | 3,362.83 | |
| Contract liability | Sichuan Tianyou Guigu Technology Co., Ltd | 185.84 | |
| Contract liability | Sichuan Zhiyijia Network Technology Co., Ltd. | 34.38 | |
| Lease liability | Hefei Changhong Industrial Co., Ltd. | 17,887,878.62 | 24,644,347.94 |
| Lease liability | Sichuan Changhong Electric Ap Chengdu Changhong Electronic Technology Co., Ltd. | 9,129,947.19 | 11,332,933.78 |
| Lease liability | Chengdu Changhong Electronic Technology Co., Ltd. | 10,468.90 | 977,917.93 |
| Other payable | Sichuan Changhong Minsheng Logistics Co., Ltd. | 111,049,082.37 | 100,309,779.69 |
| Other payable | Sichuan Service Exp. Appliance Service Chain Co., Ltd. | 80,970,437.14 | 116,814.89 |
| Other payable | Yuanxin Financial Lease Co., Ltd. | 79,112,334.67 | 79,697,695.46 |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
| Item | Related party | Balance at year-end | Balance at year-begin |
| Other payable | Sichuan Changhong Moulding Tech. Co., Ltd. | 2,700,501.98 | 2,194,205.68 |
| Other payable | Changhong Huayi Compressor Co., Ltd. | 1,698,900.00 | 1,598,900.00 |
| Other payable | Sichuan Changhong Jineng Sounshine Technology Co., Ltd. | 500,000.00 | 500,000.00 |
| Other payable | Sichuan Qiruik Technology Co., Ltd. | 479,244.80 | 175,244.04 |
| Other payable | Sichuan Zhiyijia Network Technology Co., Ltd. | 429,131.05 | 784,247.43 |
| Other payable | Sichuan Changhong Jijia Fine Co., Ltd. | 400,500.00 | 400,500.00 |
| Other payable | Sichuan Changhong Intelligence Manufacturing technology Co., Ltd. | 255,867.10 | 608,075.10 |
| Other payable | Hunan Grand-Pro Intelligent Tech. Company | 200,000.00 | 250,000.00 |
| Other payable | Sichuan Aoku Technology Co., Ltd. | 189,859.40 | 96,455.34 |
| Other payable | Sichuan Hongxin Software Co., Ltd. | 160,000.00 | |
| Other payable | Sichuan Aichuang Technology Co., Ltd. | 100,000.00 | |
| Other payable | Sichuan Changhong Electric Appliance Co., Ltd | 81,251.02 | 43,634.53 |
| Other payable | Sichuan Jiahong Industrial Co., Ltd. | 74,316.41 | 18.00 |
| Other payable | Sichuan Changhong Package Printing Co., Ltd. | 50,000.00 | 50,000.00 |
| Other payable | Sichuan Ailian Technology Co., Ltd. | 50,000.00 | 50,000.00 |
| Other payable | Sichuan Changhong Electronic Products Co., Ltd. | 50,000.00 | 50,000.00 |
| Other payable | Hefei Changhong Industrial Co., Ltd. | 50,000.00 | |
| Other payable | Sichuan Changxin Refrigeration Parts Co., Ltd. | 46,702.03 | 46,702.03 |
| Other payable | Guangdong Changhong Electronics Co., Ltd. | 38,429.50 | 79,304.55 |
| Other payable | CHANGHONG(HK)TRADINGLIMITED | 29,808.54 | 26,435.95 |
| Other payable | Sichuan Hongwei Technology Co., Ltd. | 220,425.76 | |
| Other payable | Changhong International Holdings (Hong Kong) Co., Ltd. | 52,728.63 | |
| Other payable | Sichuan Changhong Electronics Holding Group Co., Ltd. | 35,359.74 | |
| Other payable | Chengdu Guigu Environmental Tech. Co., Ltd | 25,132.00 | |
| Other payable | Sichuan Changhong Precision Electronic Technology Co., Ltd | 0.01 | |
| Total | 621,251,965.88 | 317,006,725.85 | |
(iv) Commitments from related parties: Nil
XII. Share-based payment: NilXIII. Contingency
1. Pending action or possible liabilities formed from arbitration
In November 2021, Zhejiang Teruisi Pharmaceutical Co., Ltd. filed a lawsuit against Zhongke Meiling forthe "Contract for Cold Storage Design, Equipment Procurement and Installation Construction". Currently,a third-party engineering quality appraisal agency is conducting quality appraisal of the objects under thecontract, the boot-up and operation test has been initially completed, and Zhongke Meiling intends toadvocate maintenance of the cold storage project, and the maintenance cost is estimated to be 1,793,030.00
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
yuan.
2. Contingency from external guarantee: Nil
3. Other contingency: Nil
XIV. Commitments: NilXV. Events occurring after the balance sheet date
1. Important non-adjustment items: Nil
2. Profit distribution:
For year of 2022, the individual statement of the parent company show net profit of 180,902,350.76 yuan,according to the auditing from Shine Wing Certified Public Accountants (LLP). In accordance with relevantregulations, the retained profit at beginning of Current Year amounted as 952,820,937.05 yuan, deductedthe 2021 profit distributed 51,496,185.75 yuan and after extract for statutory surplus reserve
18,090,235.08 yuan,the retained profit in individual statement of the parent company cumulative countedas 1,064,136,866.98 yuan at end of 2022. In addition, for year of 2022, the net profit attributable to ownersof parent company amounted as 244,538,734.49 yuan. According to relevant regulations, the consolidatedstatement covers and retained profit of 734,129,724.00 yuan at the beginning of the year, after deductedthe 2021 profit distribution of51,496,185.75 yuan and extract for statutory surplus reserves of18,090,235.08 yuan, the cumulative retained profit of the consolidated statement at end of 2022 is909,082,037.66yuan.According to relevant regulations, the company's profit distribution shall be based on the profit availablefor distribution of the parent company, and shall comply with the principle of the lower of the profitavailable for distribution in the consolidated statement and the parent company statement. Therefore, theprofit available for distribution in 2022 is the cumulative undistributed profit of 909,082,037.66 yuan inthe consolidated statement at the end of 2022.According to relevant laws and regulations and the "Articles of Association", and comprehensivelyconsidering the interests of shareholders and the company's long-term development needs, it is proposedto:
The Company distributed a cash dividend of RMB 0.9 (including tax) for every 10 shares to allshareholders based on the total share capital of 1,029,923,715 shares on December 31, 2022, with no bonusor conversion of reserve fund into share capital. It is expected to distribute a cash dividend of RMB92,693,134.35 After this distribution, it is estimated that the remaining accumulated undistributed profit ofthe parent company is RMB 971,443,732.63, and the remaining undistributed profit will be carried forward
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
to the next year for distribution.The aforesaid proposals have been deliberated and approved at the 31st session of 10
thBOD, and is subjectto the approval of shareholders general meeting.
3.Major sales return: Nil
4.Other than the above mentioned events, the Company have no other events occurred after balancesheet date.XVI. Other significant matters
1. Correction of previous periods and influence: Nil
2. Debt restructuring: Nil
3. Assets replacement: Nil
4. Pension plan: Nil
5. Discontinuing operation: Nil
6.Branch information
In RMB 10,000
| Item | Refrigerator, freezer Washing machine | Air-conditioner | Small home appliances | Other | Sales in branch | Total |
| Operation income | 856,404.86 | 992,462.74 | 187,015.90 | 39,205.49 | 53,566.97 | 2,021,522.02 |
| Including: foreign trade income | 849,318.67 | 992,432.38 | 164,939.35 | 14,831.62 | 2,021,522.02 | |
| Income from transactions between divisions | 7,086.18 | 30.37 | 22,076.55 | 24,373.87 | 53,566.97 | |
| Operation expenses | 872,122.55 | 976,836.38 | 183,685.39 | 35,052.99 | 53,433.28 | 2,014,264.03 |
| Operation profit | -15,717.69 | 15,626.36 | 3,330.51 | 4,152.50 | 133.69 | 7,257.99 |
| Total assets | 1,144,102.37 | 532,976.11 | 82,175.95 | 21,328.23 | 176,209.59 | 1,604,373.07 |
| Total liability | 631,664.78 | 400,090.39 | 57,697.34 | 8,121.41 | 32,716.40 | 1,064,857.52 |
| Supplementary information | ||||||
| Depreciation and amortization expenses | 21,561.66 | 14,927.46 | 389.47 | 601.53 | -21.23 | 37,501.35 |
| Capital expenditure | 19,679.39 | 13,799.56 | 27.27 | 1,059.00 | 54.87 | 34,510.35 |
Total assets do not include deferred income tax assets, and total liabilities exclude deferredincome tax liabilities.
7. Other major transactions and events shows impact on investor’s decision-making: Nil
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
XVII. Notes to main items of financial statement of parent company
1.Account receivable
(1) Presented according to the bad debt accrual method
| Category | Amount at year-end | ||||
| Book balance | Bad debt provision | Book value | |||
| Amount | Ratio(%) | Amount | Ratio(%) | ||
| Account receivable that withdrawal bad debt provision by single item | 966,219,951.36 | 80.19 | 41,766,187.59 | 4.32 | 924,453,763.77 |
| Including: Related party payments | 930,280,151.88 | 77.21 | 40,223,800.95 | 4.32 | 890,056,350.93 |
| Account receivable with letter of credit | 28,689,555.75 | 2.38 | 28,689,555.75 | ||
| Account receivable with single minor amount but withdrawal single item bad debt provision | 7,250,243.73 | 0.60 | 1,542,386.64 | 21.27 | 5,707,857.09 |
| Account receivable withdrawal bad debt provision by portfolio | 238,724,048.45 | 19.81 | 17,616,043.17 | 7.38 | 221,108,005.28 |
| Including: account receivable of engineering customers | |||||
| Receivables other than engineering customers | 238,724,048.45 | 19.81 | 17,616,043.17 | 7.38 | 221,108,005.28 |
| Total | 1,204,943,999.81 | 100.00 | 59,382,230.76 | 4.93 | 1,145,561,769.05 |
(Continued)
| Category | Amount at year-begin | ||||
| Book balance | Bad debt provision | Book value | |||
| Amount | Ratio(%) | Amount | Ratio(%) | ||
| Account receivable that withdrawal bad debt provision by single item | 1,416,366,794.95 | 88.42 | 2,554,877.42 | 0.18 | 1,413,811,917.53 |
| Including: Related party payments | 1,390,662,728.52 | 86.82 | 2,203,703.69 | 0.16 | 1,388,459,024.83 |
| Account receivable with letter of credit | 25,352,892.70 | 1.58 | 25,352,892.70 | ||
| Account receivable with single minor amount but withdrawal single item bad debt provision | 351,173.73 | 0.02 | 351,173.73 | 100.00 | |
| Account receivable withdrawal bad debt provision by portfolio | 185,510,434.61 | 11.58 | 16,670,455.89 | 8.99 | 168,839,978.72 |
| Including: account receivable of engineering customers | 6,246,264.00 | 0.39 | 3,123,132.00 | 50.00 | 3,123,132.00 |
| Receivables other than engineering customers | 179,264,170.61 | 11.19 | 13,547,323.89 | 7.56 | 165,716,846.72 |
| Total | 1,601,877,229.56 | 100.00 | 19,225,333.31 | 1.20 | 1,582,651,896.25 |
1) Provision for bad debts of account receivable on an individual basis
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
Account receivable with single minor amount but withdrawal bad debt provision singly, refers to theminor single receivables, and withdrawal bad debt provision by combination shows no riskcharacteristic of the receivables, Involving 4 customers.
2) Account receivable withdrawal bad debt provision by portfolio
A. Account receivable of engineering customers
| Account age | Balance at year-end | ||
| Book balance | Bad debt | Accrual ratio (%) | |
| Within 3 months(3 months included) | 201,773,944.94 | 2,017,739.45 | 1.00 |
| Over 3 months and within 6 months (6 months included) | 9,319,360.50 | 931,936.05 | 10.00 |
| Over 6 months and within one year (One year included) | 5,821,154.56 | 1,164,230.91 | 20.00 |
| over one year-within two years (2 years included) | 13,330,951.73 | 6,665,475.87 | 50.00 |
| Over 2 years - within 3 years (3 years included) | 8,209,879.17 | 6,567,903.34 | 80.00 |
| Over 3 years | 268,757.55 | 268,757.55 | 100.00 |
| Total | 238,724,048.45 | 17,616,043.17 | |
(2) By account age
(3) Bad debt reserves of the account receivable
| Category | Balance at year-begin | Amount change in the year | Balance at year-end | ||
| Accrual | Collected or switch back | Resale or write-off | |||
| Bad debt provision | 19,225,333.31 | 40,156,897.45 | 59,382,230.76 | ||
| Total | 19,225,333.31 | 40,156,897.45 | 59,382,230.76 | ||
(4) Top 5 balance of account receivable aggregated by the debtor at end of the period amounted to
| Account age | Ending balance | Opening balance |
| Within 3 months(3 months included) | 1,100,472,354.68 | 667,235,077.95 |
| Over 3 months and within 6 months (6 months included) | 30,307,002.60 | 867,911,914.43 |
| Over 6 months and within one year (One year included) | 18,031,084.91 | 35,781,521.18 |
| over one year-within two years (2 years included) | 31,469,257.52 | 13,453,956.99 |
| Over 2 years - within 3 years (3 years included) | 8,570,995.44 | 6,594,527.78 |
| Over 3 years | 16,093,304.66 | 10,900,231.23 |
| Total | 1,204,943,999.81 | 1,601,877,229.56 |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
965,166,380.36 yuan, accounted for 80.10% of the receivables at balance of current period-end, the
bad debt provision amounted as 41,248,943.79 yuan.
(5) Receivables derecognized due to the transfer of financial assets: 701,181,578.79 yuan
(6) There are no receivables and the amount of assets and liabilities formed by continued involvement
2. Other account receivable
| Item | Ending balance | Opening balance |
| Other account receivable | 29,903,408.82 | 40,708,614.68 |
| Total | 29,903,408.82 | 40,708,614.68 |
(1) By nature
| Nature | Ending book balance | Opening book balance |
| Export tax refund and Other tax refundable | 12,703,975.11 | 26,634,190.54 |
| Cash deposit | 2,528,111.92 | 2,788,111.92 |
| Loans of employee’s pretty cash | 7,342,858.38 | 4,383,234.18 |
| Related party in consolidation statement | 5,162,387.15 | 4,859,662.12 |
| Related party not in consolidation statement | 42,202.32 | 200,000.00 |
| Other | 2,173,873.94 | 1,893,415.92 |
| Total | 29,953,408.82 | 40,758,614.68 |
(2) Provision for bad debt of other receivable
| Bad debt reserves | First stage | Second stage | Third stage | Total |
| Expected credit loss in next 12 months | Expected credit loss for the whole duration (no credit impairment) | Expected credit loss for the whole duration (credit impairment has occurred) | ||
| Balance as at 1 Jan. 2022 | 50,000.00 | 50,000.00 | ||
| Book balance of other account receivable in Current Period as at 1 Jan. 2022 | — | — | — | — |
| --Transfer to the second stage | ||||
| --Transfer to the third stage | ||||
| --Reversal to the second stage | ||||
| --Reversal to the first stage | ||||
| Provision in Current Period | ||||
| Reversal in Current Period | ||||
| Conversion in Current Period |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
| Bad debt reserves | First stage | Second stage | Third stage | Total |
| Expected credit loss in next 12 months | Expected credit loss for the whole duration (no credit impairment) | Expected credit loss for the whole duration (credit impairment has occurred) | ||
| Write off in Current Period | ||||
| Other change | ||||
| Balance as at 31 December 2022 | 50,000.00 | 50,000.00 |
(3) By account age
| Account age | Ending balance | Opening balance | |
| Within 3 months (3 months included) | 24,770,884.16 | 34,703,730.05 | |
| Over 3 months and within 6 months (6 months included) | 261,521.34 | 1,390,793.47 | |
| Over 6 months and within one year (One year included) | 536,189.02 | 1,144,671.71 | |
| over one year-within two years (2 years included) | 1,445,151.00 | 1,556,311.89 | |
| Over 2 years - within 3 years (3 years included) | 1,360,620.00 | 899,400.00 | |
| Over 3 years | 1,579,043.30 | 1,063,707.56 | |
| Total | 29,953,408.82 | 40,758,614.68 | |
| Total | 39,074,164.97 | 40,758,614.68 | |
(4) Top 5 balance of other account receivable aggregated by the debtor at end of the period
| Name of the unit | Nature | Ending balance | Account age | Proportion of the total period-end balance of other receivable (%) | Ending balance of bad debt reserve |
| Unit I | Export rebates | 12,703,975.11 | Within 3 months | 42.41 | |
| Unit II | Related party payment | 2,290,216.37 | Within 3 months | 7.65 | |
| Unit III | Temporary payment | 2,173,873.94 | Within 3 months | 7.26 | |
| Unit IV | Related party payment | 1,955,100.37 | Within 3 months ,3-6 months | 6.53 | |
| ,Unit V | Employee petty cash | 1,952,828.58 | Within 3 months ,3 -6 Months,1 year,2 years-3 years | 6.52 | |
| Total | 21,075,994.37 | 70.37 |
(5) There are no receivables involving government subsidies
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
(6) There are no other receivables derecognized due to the transfer of financial assets.
(7) There are no other receivables and the amount of assets and liabilities formed by continuedinvolvement
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
3. Long-term equity investments
(1) Classification of long-term equity investments
| Item | Ending balance | Opening balance | ||||
| Book balance | Impairment loss | Book value | Book balance | Impairment loss | Book value | |
| Investment in subsidiaries: | ||||||
| Zhongke Meiling Cryogenic Technology Co., Ltd | 42,652,000.00 | 42,652,000.00 | 42,652,000.00 | 42,652,000.00 | ||
| Mianyang Meiling Refrigeration Co., Ltd. | 95,000,000.00 | 95,000,000.00 | 95,000,000.00 | 95,000,000.00 | ||
| Hefei Meiling Electric Appliances Marketing Co., Ltd | 54,900,000.00 | 54,900,000.00 | 54,900,000.00 | 54,900,000.00 | ||
| Zhongshan Changhong Electric Co., Ltd | 304,856,419.37 | 304,856,419.37 | 304,856,419.37 | 304,856,419.37 | ||
| Sichuan Changhong Air-conditioner Co., Ltd | 955,600,437.79 | 955,600,437.79 | 955,600,437.79 | 955,600,437.79 | ||
| Hefei Meiling Group Holdings Limited | 113,630,000.00 | 113,630,000.00 | 113,630,000.00 | 113,630,000.00 | ||
| Jiangxi Meiling Electric Appliance Co., Ltd. | 79,000,000.00 | 79,000,000.00 | 79,000,000.00 | 79,000,000.00 | ||
| Changhong Meiling Ridian Technology Co., Ltd. | 91,082,111.12 | 91,082,111.12 | 91,082,111.12 | 91,082,111.12 | ||
| Meiling CANDY Washing Machine Co., Ltd | 60,000,000.00 | 27,675,208.01 | 32,324,791.99 | |||
| Hefei Meiling Wulian Technology Co., Ltd | 6,000,000.00 | 6,000,000.00 | 6,000,000.00 | 6,000,000.00 | ||
| CH-Meiling.International (Philippines) Inc. | 6,889,100.00 | 6,889,100.00 | 6,889,100.00 | 6,889,100.00 | ||
| Hefei Changhong Meiling Life Appliances Co., Ltd. | 35,000,000.00 | 35,000,000.00 | 35,000,000.00 | 35,000,000.00 | ||
| Investment in associates: | ||||||
| Hefei Xingmei Assets Management | 19,899,176.44 | 19,899,176.44 | 19,835,366.84 | 19,835,366.84 | ||
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
| Item | Ending balance | Opening balance | ||||
| Book balance | Impairment loss | Book value | Book balance | Impairment loss | Book value | |
| Co., Ltd. | ||||||
| Sichuan Zhiyijia Network Technology Co., Ltd. | 51,850,179.61 | 51,850,179.61 | 45,787,014.55 | 45,787,014.55 | ||
| Total | 1,856,359,424.33 | 1,856,359,424.33 | 1,910,232,449.67 | 27,675,208.01 | 1,882,557,241.66 | |
(2) Investment in subsidiaries
| Invested enterprise | Opening balance | Increased in Current Period | Decreased in Current Period | Ending balance | Provision for impairment losses in the Period | Ending balance of impairment |
| Zhongke Meiling Cryogenic Technology Co., Ltd | 42,652,000.00 | 42,652,000.00 | ||||
| Mianyang Meiling Refrigeration Co., Ltd. | 95,000,000.00 | 95,000,000.00 | ||||
| Hefei Meiling Electric Appliances Marketing Co., Ltd | 54,900,000.00 | 54,900,000.00 | ||||
| Zhongshan Changhong Electric Co., Ltd | 304,856,419.37 | 304,856,419.37 | ||||
| Sichuan Changhong Air-conditioner Co., Ltd | 955,600,437.79 | 955,600,437.79 | ||||
| Hefei Meiling Group Holdings Limited | 113,630,000.00 | 113,630,000.00 | ||||
| Jiangxi Meiling Electric Appliance Co., Ltd. | 79,000,000.00 | 79,000,000.00 | ||||
| Changhong Meiling Ridian Technology Co., Ltd. | 91,082,111.12 | 91,082,111.12 | ||||
| Hefei Changhong Meiling Life Appliances Co., Ltd. | 35,000,000.00 | 35,000,000.00 | ||||
| Meiling CANDY Washing Machine Co., Ltd | 60,000,000.00 | 60,000,000.00 | ||||
| Hefei Meiling Wulian Technology Co., Ltd | 6,000,000.00 | 6,000,000.00 | ||||
| CH-Meiling.International (Philippines) Inc. | 6,889,100.00 | 6,889,100.00 |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
| Invested enterprise | Opening balance | Increased in Current Period | Decreased in Current Period | Ending balance | Provision for impairment losses in the Period | Ending balance of impairment |
| Total | 1,844,610,068.28 | 60,000,000.00 | 1,784,610,068.28 |
(3) Investment in associates
| Invested enterprise | Opening balance | Changes in Current Period | Ending balance | Ending balance of impairment | |||||||
| Additional Investment | Negative Investment | Investment income recognized under equity | Adjustment for other comprehensive income | Other equity change | Cash dividend or profit announced to issued | Provision for impairment loss | Other | ||||
| Hefei Xingmei Assets Management Co., Ltd. | 19,835,366.84 | 5,133,209.60 | 5,069,400.00 | 19,899,176.44 | |||||||
| Sichuan Zhiyijia Network Technology Co., Ltd. | 45,787,014.55 | 6,063,165.06 | 51,850,179.61 | ||||||||
| Total | 65,622,381.39 | 11,196,374.66 | 5,069,400.00 | 71,749,356.05 | |||||||
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
4. Operation income, operation cost
(1) Operation income and operation cost
| Item | Current Period | Last Period | ||
| Income | Cost | Income | Cost | |
| Main business | 6,895,525,518.29 | 6,249,708,036.25 | 6,269,665,154.77 | 5,961,603,587.31 |
| Other business | 502,803,114.71 | 470,539,689.79 | 1,558,625,413.18 | 1,504,868,816.56 |
| Total | 7,398,328,633.00 | 6,720,247,726.04 | 7,828,290,567.95 | 7,466,472,403.87 |
(2) Main business - Classified according to product
| Product | Current Period | Last Period | ||
| Operation income | Operation cost | Operation income | Operation cost | |
| Refrigerator, freezer | 5,993,436,795.13 | 5,524,684,113.61 | 5,616,008,389.43 | 5,336,569,969.26 |
| air conditioner | 5,518,915.06 | 5,357,940.73 | 9,710,128.34 | 9,624,142.71 |
| Washing machine | 664,313,682.51 | 600,074,230.97 | 501,650,494.16 | 481,590,996.66 |
| Small household appliances and kitchen and bathroom | 231,527,349.84 | 118,997,813.34 | 141,304,122.43 | 133,042,607.04 |
| Other | 728,775.75 | 593,937.60 | 992,020.41 | 775,871.64 |
| Total | 6,895,525,518.29 | 6,249,708,036.25 | 6,269,665,154.77 | 5,961,603,587.31 |
(3) Main business - Classified according to region
| Region | Current Period | Last Period | ||
| Operation income | Operation cost | Operation income | Operation cost | |
| Domestic | 4,595,509,445.92 | 4,242,198,320.28 | 3,755,627,585.57 | 3,652,876,947.70 |
| Overseas | 2,300,016,072.37 | 2,007,509,715.97 | 2,514,037,569.20 | 2,308,726,639.61 |
| Total | 6,895,525,518.29 | 6,249,708,036.25 | 6,269,665,154.77 | 5,961,603,587.31 |
Top five clients in sales revenue amounted as 4,326,558,532.20 yuan, a 58.48% in total operationincome.
5. Investment income
| Item | Current Year | Last Year |
| Long-term equity investment income by equity method | 11,196,374.66 | 14,597,022.15 |
| Investment income obtained from disposal of trading financial assets | -563,287.28 | 54,779,974.55 |
| Income from financial products | 756,009.30 | 13,016,001.33 |
| Long-term equity investment income by cost method | 47,938,347.93 | 2,754,000.00 |
| Investment income of other non-current financial assets during holding period | 10,260,629.45 | 7,596,184.95 |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
| Item | Current Year | Last Year |
| The termination of income recognition for financial assets measured by amortized cost | -4,767,753.29 | |
| Interest income from debt investment during the holding period | 14,763,930.55 | |
| Total | 79,584,251.32 | 92,743,182.98 |
XVIII. Approval of financial statementThe financial statement has already been approved from the board of directors of the Company forreporting dated 30 March 2023.XIX.Supplementary information for financial statement
1. Non-recurring gains and losses for this year
| Item | Current Year | Note |
| Gains and losses from disposal of non-current assets | 27,602,023.18 | |
| Governmental subsidy reckoned into current gains/losses (not including the subsidy enjoyed in quota or ration according to national standards, which are closely relevant to enterprise’s business) | 86,846,880.06 | |
| Losses/gains from changes of fair values occurred in holding trading financial assets and trading financial liabilities, and investment income obtaining from the disposal of trading financial assets,trading financial liability and financial assets available-for-sale, excluded effective hedging business relevant with normal operations of the Company | 36,077,236.23 | |
| Reversal of the account receivable depreciation reserves subject to separate impairment test | 2,834,795.58 | |
| Other non-operating income and expenses other than the above | 761,578.29 | |
| Subtotal | 154,122,513.34 | |
| Less: impact on income tax | 3,581,742.85 | |
| Impact on minority shareholders’ equity (post-tax) | 8,741,529.47 | |
| Total | 141,799,241.02 | — |
2. Return on equity and earnings per share
| Profit during the report period | Weighted average return on equity | Earnings per share/EPS (RMB/Share) | |
| Diluted EPS | Diluted EPS | ||
| Net profit attributable to ordinary shareholders of the parent company | 4.96% | 0.2366 | 0.2366 |
| Net profit attributable to ordinary shareholders of the parent company | 2.08% | 0.0994 | 0.0994 |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2022 to 31 December 2022(Unless otherwise specified. RMB for record in the statement）
| Profit during the report period | Weighted average return on equity | Earnings per share/EPS (RMB/Share) | |
| Diluted EPS | Diluted EPS | ||
| after deduction of the non-recurring gains/losses | |||
Chairman: Wu DinggangChanghong Meiling Co., Ltd.
March 31, 2023