Stock code: 000333 Stock name: Midea Group Announcement No.: 2023-086
Midea Group Co., Ltd.Interim Report for the Third Quarter 2023Midea Group Co., Ltd. (hereinafter referred to as the “Company”) and all the members of theCompany’s Board of Directors have warranted that the information given in this Report is true, accurateand complete, as well as free of any false record, misleading statement or material omission.
Important Reminders:
1. The Board of Directors, the Supervisory Committee as well as all the directors, supervisors andsenior management staff of the Company have warranted that this Report contains no false record,misleading statement or material omission. And they shall be jointly and severally liable for thetruthfulness, accuracy and completeness of the information given in this Report.
2. The legal representative, principal in charge of accounting and head of the accounting departmentof the Company have represented and warranted that the financial information in this Report is true,accurate and complete.
3. Is this Report audited by a CPA firm?
□Yes √No
This Report has been prepared in both Chinese and English. Should there be any discrepancies ormisunderstandings between the two versions, the Chinese version shall prevail.
1. Key financial information
1.1 Major accounting data and financial indicators
Does the Company adjust retrospectively or restate accounting data of previous years?
□Yes √No
| July-September 2023 | YoY Change (%) | January- September 2023 | YoY Change (%) | ||
| Operating revenue (RMB'000) | 94,122,108 | 7.32% | 291,110,510 | 7.67% | |
| Net profit attributable to shareholders of the Company (RMB'000) | 9,485,190 | 11.93% | 27,717,481 | 13.27% | |
| Net profit attributable to shareholders of the Company before non-recurring gains and losses (RMB'000) | 9,188,736 | 9.73% | 26,840,589 | 11.53% | |
| Net cash flows from operating activities (RMB'000) | —— | —— | 44,787,056 | 51.96% | |
| Basic earnings per share (RMB/share) | 1.39 | 11.20% | 4.06 | 13.09% | |
| Diluted earnings per share (RMB/share) | 1.39 | 12.10% | 4.05 | 13.13% | |
| Weighted average ROE (%) | 6.27% | -0.19% | 18.41% | 0.05% | |
| 30 September 2023 | 31 December 2022 | Change (%) | |||
| Total assets (RMB'000) | 465,019,979 | 422,555,267 | 10.05% | ||
| Net assets attributable to shareholders of the Company (RMB'000) | 156,226,891 | 142,935,236 | 9.30% | ||
The Company recorded revenue of RMB21.3 billion, RMB21.2 billion, and RMB22.9 billionrespectively from new energy & industrial technology, intelligent building technologies, and robotics &automation during the nine months ended 30 September 2023, up 25%, 19%, and 17% respectivelyon a year-on-year basis.
1.2 Non-recurring gains and losses
√Applicable □N/A
Unit: RMB’000
| Item | July-September 2023 | January-September 2023 | Note |
| Gain or loss from disposal of non-current assets | -30,510 | -21,985 | |
| Except for effectively hedging business related to normal business operations of the Company, gain or loss arising from the change in the fair value of financial assets held for trading, derivative financial assets, financial liabilities held for trading, derivative financial liabilities, and other non-current financial assets, as well as investment income or loss produced from the disposal of the aforesaid financial assets and liabilities | 23,652 | 48,671 | |
| Other non-operating income and expenses except | 340,311 | 979,692 |
| above-mentioned items | |||
| Less: Corporate income tax | 52,836 | 138,099 | |
| Minority interests (after tax) | -15,837 | -8,613 | |
| Total | 296,454 | 876,892 | -- |
Particulars about other items that meet the definition of non-recurring gain/loss:
□Applicable √N/A
No such cases for the Reporting Period.Explain the reasons if the Company classifies an item as a recurring gain/loss item, which isenumerated as a non-recurring gain/loss in the <Explanatory Announcement No. 1 on InformationDisclosure for Companies Offering Their Securities to the Public—Non-Recurring Gains and Losses>:
□Applicable √N/A
No such cases for the Reporting Period.
1.3 Major changes of main items in financial statements and financial indicators, as well as thereasons for the changes
√Applicable □N/A
Unit: RMB’000
| Financial statement items (consolidated) | 30 September 2023/January- September 2023 | 31 December 2022/January- September 2022 | Change (%) | Reasons for the changes |
| Financial assets held for trading | 10,961,011 | 3,284,593 | 233.71% | Mainly due to the increased structured deposits |
| Other debt investments | 6,265,554 | 11,094,259 | -43.52% | Mainly due to the decreased large-denomination negotiable certificates of deposit |
| Investment properties | 1,363,365 | 809,936 | 68.33% | Mainly due to the increased business combinations |
| Construction in progress | 6,020,835 | 3,843,777 | 56.64% | Mainly due to the increased business combinations |
| Other non-current assets | 67,912,424 | 42,840,079 | 58.53% | Mainly due to the increased investments in fixed-income products |
| Short-term borrowings | 12,494,727 | 5,169,480 | 141.70% | Mainly due to the increased trade financings |
| Customer deposits and deposits from banks and other financial institutions | 118,328 | 77,469 | 52.74% | Mainly due to the changes in the operations of the finance business |
| Taxes payable | 6,587,520 | 4,955,335 | 32.94% | Mainly due to the increased income tax payable |
| Current portion of non-current liabilities | 20,454,107 | 7,240,626 | 182.49% | Mainly due to the transfer from long-term borrowings |
| Lease liabilities | 1,982,211 | 1,507,480 | 31.49% | Mainly due to the new lease contracts |
| Provisions | 670,072 | 394,977 | 69.65% | Mainly due to the increased provisions for risk |
| Other non-current liabilities | 30,033 | 680,482 | -95.59% | Mainly due to the payments for equity acquisitions |
| Other comprehensive income | -372,801 | 108,289 | -444.26% | Mainly due to the changes in cash flow hedging reserve |
| Minority interests | 12,035,366 | 8,988,566 | 33.90% | Mainly due to the increased business combinations |
| Investment income | 505,083 | 862,732 | -41.46% | Mainly due to the decreased investment income from the disposal of derivative financial assets and liabilities |
| Gains/(Losses) on changes in fair value | 118,137 | -1,042,032 | 111.34% | Mainly due to the changes in the fair value of investments in equity instruments |
| Non-operating income | 183,740 | 292,601 | -37.20% | Mainly due to the decreased government subsidies |
| Non-operating expenses | 181,097 | 71,626 | 152.84% | Mainly due to the increased other expenses |
| Income tax expenses | 5,495,255 | 4,189,933 | 31.15% | Mainly due to the increased profit before tax |
| Net profit attributable to minority interests | 569,608 | 223,805 | 154.51% | Mainly due to the increased profits of non-wholly-owned subsidiaries |
| Net cash flows from operating activities | 44,787,056 | 29,472,352 | 51.96% | Mainly due to the increased cash received from sales of goods or rendering of services |
| Net cash flows from investing activities | -33,608,113 | -18,705,995 | -79.66% | Mainly due to the increased cash paid to acquire investments |
| Net cash flows from financing activities | -13,409,903 | -1,171,191 | -1044.98% | Mainly due to the decreased cash received from borrowings |
| Net increase in cash and cash equivalents | -2,060,575 | 9,944,675 | -120.72% | Mainly due to the decreased net cash flows from investing activities |
2. Shareholder information
2.1 Total number of common shareholders and preference shareholders with resumed votingrights, as well as shareholdings of the top ten shareholders at the period-end
Unit: share
| Total number of common shareholders at the period-end | 325,280 | Total number of preference shareholders with resumed voting rights at the period-end (if any) | 0 | ||||||
| Top 10 shareholders | |||||||||
| Name of shareholder | Nature of shareholder | Shareholding percentage (%) | Number of shares held | Number of restricted shares held | Shares in pledge or frozen | ||||
| Status | Shares | ||||||||
| Midea Holding Co., Ltd. | Domestic non- | 30.85 | 2,169,178,713 | In | 100,000,000 | ||||
| state-owned corporation | pledge | |||||||
| Hong Kong Securities Clearing Company Limited | Foreign corporation | 19.97 | 1,404,332,481 | - | - | |||
| China Securities Finance Co., Ltd. | Domestic non-state-owned corporation | 2.82 | 198,145,134 | - | - | |||
| Fang Hongbo | Domestic individual | 1.66 | 116,990,492 | 87,742,869 | - | - | ||
| Central Huijin Asset Management Ltd. | State-owned corporation | 1.26 | 88,260,460 | - | - | |||
| Huang Jian | Domestic individual | 1.23 | 86,170,000 | - | - | |||
| Canada Pension Plan Investment Board－ own funds (stock exchange) | Foreign corporation | 0.77 | 54,007,196 | - | - | |||
| Li Jianwei | Foreign individual | 0.65 | 45,591,545 | - | - | |||
| UBS AG | Foreign corporation | 0.63 | 44,033,057 | - | - | |||
| Temasek Fullerton Alpha Pte Ltd | Foreign corporation | 0.52 | 36,841,885 | - | - | |||
| Top 10 non-restricted shareholders | ||||||||
| Name of shareholder | Number of non-restricted shares held at the period-end | Type of shares | ||||||
| Type | Shares | |||||||
| Midea Holding Co., Ltd. | 2,169,178,713 | RMB common stock | 2,169,178,713 | |||||
| Hong Kong Securities Clearing Company Limited | 1,404,332,481 | RMB common stock | 1,404,332,481 | |||||
| China Securities Finance Co., Ltd. | 198,145,134 | RMB common stock | 198,145,134 | |||||
| Central Huijin Asset Management Ltd. | 88,260,460 | RMB common stock | 88,260,460 | |||||
| Huang Jian | 86,170,000 | RMB common stock | 86,170,000 | |||||
| Canada Pension Plan Investment Board－ own funds (stock exchange) | 54,007,196 | RMB common stock | 54,007,196 | |||||
| Li Jianwei | 45,591,545 | RMB common stock | 45,591,545 | |||||
| UBS AG | 44,033,057 | RMB common stock | 44,033,057 | |||||
| Temasek Fullerton Alpha Pte Ltd | 36,841,885 | RMB common stock | 36,841,885 | |||||
| Yuan Liqun | 36,337,100 | RMB common stock | 36,337,100 | |||||
| Explanation of related relationship or/and acting-in-concert parties among the above-mentioned shareholders | N/A | |||||||
| Explanation on the top 10 common shareholders participating in securities margin trading | The Company’s shareholder Yuan Liqun holds 6,002,100 shares in the Company through her common securities account and 30,335,000 shares in the Company through her account of collateral securities for margin trading, representing a total holding of 36,337,100 shares in the Company. | |||||||
| Special account for repurchased shares among the top 10 shareholders | 118,366,752 shares (or 1.68% of the Company’s total share capital) were held in the special account for repurchased shares of Midea Group Co., Ltd. at the end of the Reporting Period. | |||||||
2.2 Total number of preference shareholders and shareholdings of the top 10 preferenceshareholders at the period-end
□Applicable √N/A
3. Other significant events
□Applicable √N/A
4. Financial statements
4.1 Financial statements
| Consolidated and Company Balance Sheets | ||||||||||
| Prepared by Midea Group Co. Ltd. As at 30 September 2023 Unit: RMB’000 | ||||||||||
| ASSETS | 30 September 2023 | 31 December 2022 | 30 September 2023 | 31 December 2022 | ||||||
| Consolidated | Consolidated | Company | Company | |||||||
| Current assets: | ||||||||||
| Cash at bank and on hand | 68,099,578 | 55,270,099 | 26,000,601 | 28,492,401 | ||||||
| Financial assets held for trading | 10,961,011 | 3,284,593 | 7,316,970 | 274,120 | ||||||
| Derivative financial assets | 473,550 | 665,484 | - | - | ||||||
| Notes receivable | 5,108,524 | 4,758,129 | - | - | ||||||
| Accounts receivable | 35,752,203 | 28,237,973 | - | - | ||||||
| Receivables financing | 16,935,626 | 13,526,540 | - | - | ||||||
| Advances to suppliers | 3,876,761 | 4,367,211 | 40,382 | 34,724 | ||||||
| Contract assets | 4,838,145 | 4,498,956 | - | - | ||||||
| Loans and advances | 13,506,003 | 14,138,756 | - | - | ||||||
| Other receivables | 1,942,571 | 2,211,177 | 24,639,376 | 26,175,101 | ||||||
| Inventories | 33,379,154 | 46,044,897 | - | - | ||||||
| Current portion of non-current assets | 39,828,068 | 37,553,078 | 34,483,343 | 33,168,421 | ||||||
| Other current assets | 38,560,284 | 46,542,378 | 26,512,094 | 33,476,601 | ||||||
| Total current assets | 273,261,478 | 261,099,271 | 118,992,766 | 121,621,368 | ||||||
| Non-current assets: | ||||||||||
| Other debt investments | 6,265,554 | 11,094,259 | 3,306,144 | 7,215,301 | ||||||
| Long-term receivables | 641,523 | 614,598 | - | - | ||||||
| Loans and advances | 930,113 | 693,294 | - | - | ||||||
| Long-term equity investments | 4,991,656 | 5,188,817 | 74,697,610 | 73,103,569 | ||||||
| Investments in other equity instruments | 41,228 | 41,359 | - | - | ||||||
| Other non-current financial assets | 9,189,870 | 10,625,244 | 293,453 | 347,698 | ||||||
| Investment properties | 1,363,365 | 809,936 | 404,262 | 386,435 | ||||||
| Fixed assets | 28,676,370 | 26,082,992 | 1,318,758 | 1,223,553 | ||||||
| Construction in progress | 6,020,835 | 3,843,777 | 672,066 | 504,757 | ||||||
| Right-of-use assets | 2,844,183 | 2,339,878 | 2,945 | 8,040 | ||||||
| Intangible assets | 18,378,522 | 16,908,915 | 642,871 | 653,320 | ||||||
| Goodwill | 29,954,519 | 28,548,653 | - | - | ||||||
| Long-term prepaid expenses | 1,620,475 | 1,579,899 | 74,746 | 85,109 | ||||||
| Deferred tax assets | 12,927,864 | 10,244,296 | 285,405 | 327,251 | ||||||
| Other non-current assets | 67,912,424 | 42,840,079 | 62,512,635 | 35,423,939 | ||||||
| Total non-current assets | 191,758,501 | 161,455,996 | 144,210,895 | 119,278,972 | ||||||
| TOTAL ASSETS | 465,019,979 | 422,555,267 | 263,203,661 | 240,900,340 | ||||||
| Consolidated and Company Balance Sheets (Cont’d) | |||||||
| Prepared by Midea Group Co. Ltd. As at 30 September 2023 Unit: RMB’000 | |||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | 30 September 2023 | 31 December 2022 | 30 September 2023 | 31 December 2022 | |||
| Consolidated | Consolidated | Company | Company | ||||
| Current liabilities: | |||||||
| Short-term borrowings | 12,494,727 | 5,169,480 | 400,000 | - | |||
| Customer deposits and deposits from banks and other financial institutions | 118,328 | 77,469 | - | - | |||
| Financial liabilities held for trading | 1,321,567 | 1,580,771 | - | - | |||
| Derivative financial liabilities | 211,314 | 234,606 | - | - | |||
| Notes payable | 18,635,368 | 25,572,421 | - | - | |||
| Accounts payable | 71,440,916 | 64,233,225 | - | - | |||
| Contract liabilities | 29,041,409 | 27,960,038 | - | - | |||
| Employee benefits payable | 6,998,153 | 7,152,217 | 108,554 | 173,824 | |||
| Taxes payable | 6,587,520 | 4,955,335 | 549,747 | 718,181 | |||
| Other payables | 4,165,077 | 4,322,025 | 186,392,250 | 159,953,351 | |||
| Current portion of non-current liabilities | 20,454,107 | 7,240,626 | 12,423,498 | 5,896,701 | |||
| Other current liabilities | 72,366,510 | 57,843,528 | 42,383 | 77,066 | |||
| Total current liabilities | 243,834,996 | 206,341,741 | 199,916,432 | 166,819,123 | |||
| Non-current liabilities: | |||||||
| Long-term borrowings | 38,727,279 | 50,685,948 | 9,000,000 | 15,619,900 | |||
| Bonds payable | 3,238,127 | 3,163,616 | - | - | |||
| Lease liabilities | 1,982,211 | 1,507,480 | - | 2,350 | |||
| Provisions | 670,072 | 394,977 | - | - | |||
| Deferred income | 1,997,774 | 1,721,092 | 190,758 | 152,548 | |||
| Long-term employee benefits payable | 1,289,707 | 1,488,456 | - | - | |||
| Deferred tax liabilities | 4,987,523 | 4,647,673 | - | - | |||
| Other non-current liabilities | 30,033 | 680,482 | - | - | |||
| Total non-current liabilities | 52,922,726 | 64,289,724 | 9,190,758 | 15,774,798 | |||
| Total liabilities | 296,757,722 | 270,631,465 | 209,107,190 | 182,593,921 | |||
| Shareholders’ equity: | |||||||
| Share capital | 7,030,771 | 6,997,273 | 7,030,771 | 6,997,273 | |||
| Capital surplus | 21,368,056 | 19,693,139 | 29,556,089 | 27,826,208 | |||
| Less: Treasury stock | (13,406,249) | (14,933,944) | (13,406,249) | (14,933,944) | |||
| Other comprehensive income | (372,801) | 108,289 | 1,892 | (5,679) | |||
| General risk reserve | 679,682 | 671,999 | - | - | |||
| Special reserve | 17,120 | 16,350 | - | - | |||
| Surplus reserve | 10,702,928 | 10,702,928 | 10,702,928 | 10,702,928 | |||
| Undistributed profits | 130,207,384 | 119,679,202 | 20,211,040 | 27,719,633 | |||
| Total equity attributable to shareholders of the Company | 156,226,891 | 142,935,236 | 54,096,471 | 58,306,419 | |||
| Minority interests | 12,035,366 | 8,988,566 | - | - | |||
| Total shareholders’ equity | 168,262,257 | 151,923,802 | 54,096,471 | 58,306,419 | |||
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 465,019,979 | 422,555,267 | 263,203,661 | 240,900,340 | |||
| Legal representative: Principal in charge of accounting: Head of accounting department: Fang Hongbo Zhong Zheng Chen Lihong | |||||||
| Consolidated and Company Income Statements | ||||
| Prepared by Midea Group Co. Ltd. For the nine months ended 30 September 2023 Unit: RMB’000 | ||||
| Item | For the nine months ended 30 September 2023 | For the nine months ended 30 September 2022 | For the nine months ended 30 September 2023 | For the nine months ended 30 September 2022 |
| Consolidated | Consolidated | Company | Company | |
| Total revenue | 292,379,658 | 271,775,057 | 807,741 | 1,128,972 |
| Including: Operating revenue | 291,110,510 | 270,366,753 | 807,741 | 1,128,972 |
| Interest income | 1,268,673 | 1,407,722 | - | - |
| Fee and commission income | 475 | 582 | - | - |
| Total operating cost | (260,261,351) | (243,771,100) | 343,587 | 618,929 |
| Including: Cost of sales | (215,876,420) | (206,530,717) | (30,606) | (31,123) |
| Interest costs | (21,818) | (35,457) | - | - |
| Fee and commission expenses | (2,027) | (1,721) | - | - |
| Taxes and surcharges | (1,325,457) | (1,155,550) | (25,709) | (11,208) |
| Selling and distribution expenses | (25,346,676) | (21,196,708) | - | - |
| General and administrative expenses | (9,337,069) | (8,044,890) | (1,030,915) | (922,674) |
| Research and development expenses | (10,013,534) | (8,916,512) | - | - |
| Financial income | 1,661,650 | 2,110,455 | 1,430,817 | 1,583,934 |
| Including: Interest expenses | (2,285,139) | (1,269,255) | (2,232,397) | (1,952,684) |
| Interest income | 5,113,637 | 4,256,895 | 3,671,077 | 3,545,017 |
| Add: Other income | 1,414,310 | 1,274,084 | 30,588 | 19,594 |
| Investment income | 505,083 | 862,732 | 8,577,756 | 5,999,505 |
| Including: Investment income from associates and joint ventures | 620,966 | 478,015 | 178,044 | 207,222 |
| Gains/(Losses) on changes in fair value | 118,137 | (1,042,032) | 87,451 | (161,751) |
| Asset impairment losses | (172,481) | (195,425) | - | - |
| Credit impairment losses | (181,670) | (236,992) | 697 | 1,477 |
| Losses on disposal of assets | (21,985) | (3,640) | (86) | (281) |
| Operating profit | 33,779,701 | 28,662,684 | 9,847,734 | 7,606,445 |
| Add: Non-operating income | 183,740 | 292,601 | 9,555 | 33,677 |
| Less: Non-operating expenses | (181,097) | (71,626) | (371) | (10,286) |
| Total profit | 33,782,344 | 28,883,659 | 9,856,918 | 7,629,836 |
| Less: Income tax expenses | (5,495,255) | (4,189,933) | (183,895) | (287,458) |
| Net profit | 28,287,089 | 24,693,726 | 9,673,023 | 7,342,378 |
| (1) Classified by continuity of operations | ||||
| Net profit from continuing operations | 28,287,089 | 24,693,726 | 9,673,023 | 7,342,378 |
| Net profit from discontinued operations | - | - | - | - |
| (2) Classified by ownership of the equity | ||||
| Attributable to shareholders of the Company | 27,717,481 | 24,469,921 | 9,673,023 | 7,342,378 |
| Minority interests | 569,608 | 223,805 | - | - |
| Other comprehensive income, net of tax | (543,238) | 2,314,988 | 7,571 | 4,838 |
| Other comprehensive income attributable to equity owners of the Company, net of tax | (481,090) | 2,332,017 | 7,571 | 4,838 |
| (1) Other comprehensive income items which will not be reclassified subsequently to profit or loss | (11,761) | 236,579 | - | - |
| 1) Changes arising from remeasurement of defined benefit plan | (11,761) | 233,662 | - | - |
| 2) Changes in fair value of investments in other equity instruments | - | 2,917 | - | - |
| (2) Other comprehensive income items which will be reclassified subsequently to profit or loss | (469,329) | 2,095,438 | 7,571 | 4,838 |
| 1) Other comprehensive income that will be transferred subsequently to profit or loss | 17,323 | 26,369 | 7,571 | 4,838 |
| under the equity method | ||||
| 2) Cash flow hedging reserve | (556,111) | 381,971 | - | - |
| 3) Differences on translation of foreign currency financial statements | 84,630 | 1,687,098 | - | - |
| 4) Other | (15,171) | - | - | - |
| Other comprehensive income attributable to minority shareholders, net of tax | (62,148) | (17,029) | - | - |
| Total comprehensive income | 27,743,851 | 27,008,714 | 9,680,594 | 7,347,216 |
| Attributable to equity owners of the Company | 27,236,391 | 26,801,938 | 9,680,594 | 7,347,216 |
| Attributable to minority interests | 507,460 | 206,776 | - | - |
| Earnings per share: | ||||
| (1) Basic earnings per share (RMB Yuan) | 4.06 | 3.59 | Not applicable | Not applicable |
| (2) Diluted earnings per share (RMB Yuan) | 4.05 | 3.58 | Not applicable | Not applicable |
| Legal representative: Principal in charge of accounting: Head of accounting department: Fang Hongbo Zhong Zheng Chen Lihong | ||||
| Consolidated and Company Cash Flow Statements | ||||||||
| Prepared by Midea Group Co. Ltd. For the nine months ended 30 September 2023 Unit: RMB’000 | ||||||||
| Item | For the nine months ended 30 September 2023 | For the nine months ended 30 September 2022 | For the nine months ended 30 September 2023 | For the nine months ended 30 September 2022 | ||||
| Consolidated | Consolidated | Company | Company | |||||
| 1. Cash flows from operating activities | ||||||||
| Cash received from sales of goods or rendering of services | 262,375,345 | 234,341,478 | - | - | ||||
| Net increase in customer deposits and deposits from banks and other financial institutions | 40,860 | 9,080 | - | - | ||||
| Net decrease in loans and advances | 480,148 | 7,455,670 | - | - | ||||
| Net decrease in deposits with the Central Bank, banks and other financial institutions | 152,667 | 123,170 | - | - | ||||
| Net increase in loans with the Central Bank | - | - | - | - | ||||
| Cash received from interest, fee and commission | 1,283,930 | 1,405,190 | - | - | ||||
| Refund of taxes and surcharges | 6,181,899 | 8,612,132 | - | - | ||||
| Cash received relating to other operating activities | 4,963,743 | 6,262,601 | 30,456,009 | 29,058,041 | ||||
| Sub-total of cash inflows | 275,478,592 | 258,209,321 | 30,456,009 | 29,058,041 | ||||
| Cash paid for goods and services | (159,850,989) | (166,690,317) | - | - | ||||
| Net increase in loans and advances | - | - | - | - | ||||
| Net decrease in customer deposits and deposits from banks and other financial institutions | - | - | - | - | ||||
| Net increase in balances with the Central Bank | - | - | - | - | ||||
| Net decrease in borrowings from the Central Bank | - | (178,878) | - | - | ||||
| Cash paid for interest, fee and commission | (23,845) | (38,342) | - | - | ||||
| Cash paid to and on behalf of employees | (29,339,923) | (26,297,099) | (357,445) | (328,470) | ||||
| Payments of taxes and surcharges | (15,180,128) | (12,996,276) | (335,458) | (358,516) | ||||
| Cash paid relating to other operating activities | (26,296,651) | (22,536,057) | (1,209,264) | (897,876) | ||||
| Sub-total of cash outflows | (230,691,536) | (228,736,969) | (1,902,167) | (1,584,862) | ||||
| Net cash flows from operating activities | 44,787,056 | 29,472,352 | 28,553,842 | 27,473,179 | ||||
| 2. Cash flows from investing activities | ||||||||
| Cash received from disposal of investments | 87,124,789 | 79,619,731 | 60,703,000 | 40,500,000 | ||||
| Cash received from returns on investments | 4,232,951 | 3,712,469 | 11,477,722 | 7,107,197 | ||||
| Net cash received from disposal of fixed assets, intangible assets and other long-term assets | 119,685 | 124,672 | 11 | 53 | ||||
| Net cash received from disposal of subsidiaries and other business units | 6,000 | 14,829 | 18,000 | 6,500 | ||||
| Cash received relating to other investing activities | 373,816 | 335,082 | - | - | ||||
| Sub-total of cash inflows | 91,857,241 | 83,806,783 | 72,198,733 | 47,613,750 | ||||
| Cash paid to acquire fixed assets, intangible assets and other long-term assets | (4,143,771) | (4,318,974) | (767,476) | (375,100) | ||||
| Cash paid to acquire investments | (121,236,767) | (97,817,524) | (86,102,212) | (62,696,223) | ||||
| Net cash paid to acquire subsidiaries and other business units | - | (376,280) | - | - | ||||
| Cash paid relating to other investing activities | (84,816) | - | - | - | ||||
| Sub-total of cash outflows | (125,465,354) | (102,512,778) | (86,869,688) | (63,071,323) | ||||
| Net cash flows from investing activities | (33,608,113) | (18,705,995) | (14,670,955) | (15,457,573) | ||||
| 3. Cash flows from financing activities | ||||||||
| Cash received from capital contributions | 2,196,750 | 1,256,885 | 2,155,838 | 1,255,885 | ||||
| Including: Cash received from capital contributions by minority shareholders of subsidiaries | 40,912 | 1,000 | - | - | ||||
| Cash received from borrowings | 22,764,632 | 43,047,859 | 400,000 | 9,000,000 | ||||
| Cash received from issuance of medium-term debentures | - | 2,841,690 | - | - | ||||
| Cash received from issuance of short-term financing bonds | - | 3,999,500 | - | 3,999,500 | ||||
| Cash received relating to other financing activities | 303,154 | 90,498 | - | - | ||||
| Sub-total of cash inflows | 25,264,536 | 51,236,432 | 2,555,838 | 14,255,385 | ||||
| Cash repayments of borrowings | (18,192,653) | (34,310,771) | (89,900) | (89,900) | ||||
| Cash paid for repayment of short-term financing bonds | - | - | - | - | ||||
| Cash payments for interest expenses and distribution of dividends or profits | (18,993,135) | (13,090,540) | (19,504,858) | (14,154,406) | ||||
| Including: Cash payments for dividends or profit to minority shareholders of subsidiaries | (193,050) | (158,110) | - | - | ||||
| Cash payments relating to other financing activities | (1,488,651) | (5,006,312) | (262,011) | (2,581,074) | ||||
| Sub-total of cash outflows | (38,674,439) | (52,407,623) | (19,856,769) | (16,825,380) | ||||
| Net cash flows from financing activities | (13,409,903) | (1,171,191) | (17,300,931) | (2,569,995) | ||||
| 4. Effect of foreign exchange rate changes on cash and cash equivalents | 170,385 | 349,509 | - | - | ||||
| 5. Net increase in cash and cash equivalents | (2,060,575) | 9,944,675 | (3,418,044) | 9,445,611 | ||||
| Add: Cash and cash equivalents at the beginning of the period | 51,131,968 | 40,550,039 | 27,904,229 | 21,957,042 | ||||
| 6. Cash and cash equivalents at the end of the period | 49,071,393 | 50,494,714 | 24,486,185 | 31,402,653 | ||||
| Legal representative: Principal in charge of accounting: Head of accounting department: Fang Hongbo Zhong Zheng Chen Lihong | ||||||||
4.2 Adjustments to financial statement items at the beginning of the year of the firstimplementation of the new accounting standards which have been implemented since 2023
□Applicable √N/A
4.3 Auditor’s report
Is this Report audited by a CPA firm?
□Yes √No
This Report is unaudited by a CPA firm.
The Board of Directors of Midea Group Co., Ltd.31 October 2023