Changhong Meiling Co., Ltd.
The First Quarterly Report of 2019
April 2019
Section I. Important Notes
Board of Directors and the Supervisory Committee of Changhong Meiling Co., Ltd. (hereinafter referred toas the Company) and its directors, supervisors and senior executives should guarantee the reality, accuracy andcompletion of the quarterly report, there are no any fictitious statements, misleading statements or importantomissions carried in this report, and shall take legal responsibilities, individual and/or joint.
Mr. Li Wei, person in charge of the Company, Mr. Pang Haitao, person in charger of accounting works andMr. Luo Bo, person in charger of accounting organ (accounting officer) hereby confirm that the Financial Reportof this Quarterly Report is authentic, accurate and complete.
Prompt of non-standard audit opinion
□ Applicable √ Not applicable
The First Quarterly Report of 2019 has not been audited.
All Directors are attended the Board Meeting for Quarterly Report deliberation.
Section II. Basic situation of the Company
I. Main accounting data and financial indexes
Whether it has retroactive adjustment or re-statement on previous accounting data or not□Yes √ No
| This Period | Same period of last year | Changes of this period over same period of last year | |
| Operating income (RMB) | 4,222,693,607.41 | 4,245,506,565.60 | -0.54% |
| Net profit attributable to shareholders of the listed company (RMB) | 60,526,575.53 | 56,261,852.68 | 7.58% |
| Net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses (RMB) | 36,385,461.05 | 23,011,689.73 | 58.12% |
| Net cash flow arising from operating activities (RMB) | -921,543,887.11 | -771,375,311.87 | -19.47% |
| Basic earnings per share (RMB/Share) | 0.0579 | 0.0539 | 7.42% |
| Diluted earnings per share (RMB/Share) | 0.0579 | 0.0539 | 7.42% |
| Weighted average ROE | 1.20% | 1.11% | 0.09 percentage points up |
| End of this period | End of last period | Changes of this period-end over same period-end of last year | |
| Total assets (RMB) | 15,122,914,651.38 | 15,561,810,184.54 | -2.82% |
| Net assets attributable to shareholder of listed company (RMB) | 5,065,768,249.09 | 5,015,730,486.57 | 1.00% |
Items of non-recurring gains and losses√ Applicable □ Not applicable
In RMB
| Item | Amount from year-begin to period-end | Note |
| Gains/losses from the disposal of non-current asset (including the write-off that accrued for impairment of assets) | -786,764.45 | Found in “Asset disposal income” |
| 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) | 15,222,078.41 | Found in “Other income” |
| Held transaction financial asset, gains/losses of changes of fair values from transaction financial liabilities, and investment gains from disposal of transaction financial asset, transaction financial liabilities and financial | 11,538,197.60 | Found in “Investment income” and “Changes in fair value gains” |
| asset available for sales, exclude the effective hedging business relevant with normal operations of the Company | ||
| Reversion of the impairment provision of account receivable and contractual assets that carry impairment test independently | 289,901.57 | Found in “Account receivable” |
| Other non-operating income and expenditure except for the aforementioned items | -869,981.41 | Found in “Non-operating income and expenditure” |
| Less: impact on income tax | 906,134.04 | -- |
| Impact on minority shareholders’ equity (post-tax) | 346,183.20 | -- |
| Total | 24,141,114.48 | -- |
Concerning the extraordinary profit (gain)/loss defined by Q&A Announcement No.1 on InformationDisclosure for Companies Offering Their Securities to the Public --- Extraordinary Profit/loss, and the itemsdefined as recurring profit (gain)/loss according to the lists of extraordinary profit (gain)/loss in Q&AAnnouncement No.1 on Information Disclosure for Companies Offering Their Securities to the Public ---Extraordinary Profit/loss, explain reasons
□ Applicable √ Not applicable
The Company has no items defined as recurring profit (gain)/loss according to the lists of extraordinary profit(gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities tothe Public --- Extraordinary Profit/loss, in the period.
II. Total number of shareholders at the end of this report period and top ten shareholders
1. Total number of common shareholders and preference shareholders with voting rights recovered and topten common shareholders
In shares
| Total number of common shareholders at the end of report period | 65,331 | Total preference shareholders with voting rights recovered at end of reporting period (if applicable) | 0 | |||
| Top ten shareholders | ||||||
| Shareholder’s name | Nature of shareholder | Proportion of shares held | Amount of shares held | Amount of restricted shares held | Number of share pledged/frozen | |
| State of share | Amount | |||||
| Sichuan Changhong Electric Co., Ltd. | State-owned legal person | 23.79% | 248,457,724 | 69,877,638 | - | - |
| Hefei Industrial Investment Holding (Group) Co., Ltd. | State-owned legal person | 4.58% | 47,823,401 | 0.00 | - | - |
| Changhong (Hong Kong) Trade Co., Ltd. | Foreign legal person | 2.59% | 27,077,797 | 0.00 | - | - |
| CAOSHENGCHUN | Foreign nature person | 1.36% | 14,240,979 | 0.00 | - | - | |
| Ping An UOB-Ping An Bank-Guohai Securities Co., Ltd. | Domestic non-State-owned legal person | 1.20% | 12,522,361 | 0.00 | - | - | |
| Caitong Fund- Ningbo Bank-Haitong Xingtai (Anhui) Emerging Industry Investment Fund (Limited Partnership) | Domestic non-State-owned legal person | 1.03% | 10,733,452 | 0.00 | - | - | |
| UBSAG | Foreign legal person | 1.01% | 10,533,440 | 0.00 | - | - | |
| Caitong Fund－Everbright Bank－Soochow Securities Co., Ltd. | Domestic non-State-owned legal person | 0.67% | 6,997,881 | 0.00 | - | - | |
| Philip Securities (H.K.) Co., Ltd. | Foreign legal person | 0.60% | 6,296,913 | 0.00 | - | - | |
| China Construction Bank - China Central Zhongzheng Sichuan Reform of State-owned Enterprise ETF | Domestic non-State-owned legal person | 0.44% | 4,627,500 | 0.00 | - | - | |
| Top ten shareholders with unrestricted shares held | |||||||
| Shareholder’s name | Amount of unrestricted shares held | Type of shares | |||||
| Type | Amount | ||||||
| Sichuan Changhong Electric Co., Ltd. | 178,580,086 | RMB ordinary shares | 178,580,086 | ||||
| Hefei Industrial Investment Holding (Group) Co., Ltd. | 47,823,401 | RMB ordinary shares | 47,823,401 | ||||
| Changhong (Hong Kong) Trade Co., Ltd. | 27,077,797 | Domestically listed foreign shares | 27,077,797 | ||||
| CAOSHENGCHUN | 14,240,979 | Domestically listed foreign shares | 14,240,979 | ||||
| Ping An UOB-Ping An Bank-Guohai Securities Co., Ltd. | 12,522,361 | RMB ordinary shares | 12,522,361 | ||||
| Caitong Fund- Ningbo Bank-Haitong Xingtai (Anhui) Emerging Industry Investment Fund (Limited Partnership) | 10,733,452 | RMB ordinary shares | 10,733,452 | ||||
| UBSAG | 10,533,440 | RMB ordinary shares | 10,533,440 | ||||
| Caitong Fund－Everbright Bank－Soochow Securities Co., Ltd. | 6,997,881 | RMB ordinary shares | 6,997,881 | ||||
| Philip Securities (H.K.) Co., Ltd. | 6,296,913 | Domestically listed foreign shares | 6,296,913 | ||||
| China Construction Bank - China Central Zhongzheng Sichuan Reform of State-owned Enterprise ETF | 4,627,500 | RMB ordinary shares | 4,627,500 | ||||
| Explanation on associated relationship among the aforesaid shareholders | Among the above shareholders, CHANGHONG (HK) TRADING LIMITED (“CHANGHONG (HK)” for short) is the wholly-owned subsidiary of Sichuan Changhong Electric Co., Ltd. (“Sichuan Changhong” for short), except for the shares directly held by HK Changhong, 6,296,913 B-shares are held by HK Changhong through Philip Securities (Hong Kong) Limited, which consist a person acting in concert. 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, CHANGHONG (HK) and other top 7 shareholders; “Ping An UOB-Ping An Bank-Guohai Securities Co., Ltd. ”Ping An UOB-Ping An Bank-Guohai Securities Co., Ltd. refers to the products of Ping An UOB Fund Management Company subscribe for privately placement of 2016; “Caitong Fund- Ningbo Bank-Haitong Xingtai (Anhui) Emerging Industry Investment Fund (Limited Partnership) ” and “Caitong Fund-Everbright Bank-Soochow Securities Co., Ltd.”refers to the products of Caitong Fund Management Company subscribe for privately placement of 2016; The company neither knows whether there is any association among other shareholders, nor knows whether other shareholders belong to the persons acting in concert that is stipulated in the “Administrative Measures on Information Disclosure of Changes in Shareholding of Listed Companies”. |
| Explanation on top ten common shareholders involving margin business (if applicable) | N/A |
Note 1: In the above table, "Particulars about shares held above 5% by shareholders or top 10 shares holding"is subject to the data on stock transfer books provided by China Securities Depository and Clearing CorporationLimited Shenzhen Branch
Whether top ten common shareholders or top ten common shareholders with un-restrict shares held have abuy-back agreement dealing in reporting period
□ Yes √ No
The top ten common shareholders or top ten common shareholders with un-restrict shares held of theCompany have no buy-back agreement dealing in reporting period.2. Total shareholders with preferred stock held and shares held by top ten shareholders with preferredstock held□ Applicable √ Not applicable
Section III. Significant Events
I. Particulars about material changes in items of main accounting statement and financialindex and explanations of reasons
√ Applicable □Not applicable(I) Changes and reasons of items in balance sheet
In RMB
| Item | Ending balance | Opening balance | Changes ratio | Reasons of changes |
| Other receivable | 110,894,324.39 | 63,192,740.93 | 75.49% | Other account receivable from clients increased in the Period |
| Transactional financial liabilities | 37,130,673.69 | 55,586,666.70 | -33.20% | Change of the fair value for FXA (Forward Exchange Agreement) carried out in the period |
| Taxes payable | 72,320,922.91 | 109,753,432.17 | -34.11% | Taxes paid by subsidiary Sichuan Air Conditioner in the period |
(II) Changes and reasons of items in profit statement
In RMB
| Item | Amount at the period | Amount at the same period of last year | Changes ratio | Reasons of changes |
| Taxes and surcharges | 41,279,976.29 | 25,629,526.25 | 61.06% | Taxes accrual in the period increased from a year earlier |
| Financial expenses | 12,386,522.10 | -1,695,567.00 | 830.52% | Interest expenditure and loss from foreign exchange in the period increased on a y-o-y basis |
| Assets impairment loss | 8,114,711.29 | 17,534,805.86 | -53.72% | Due to the change of accounting policy, accrual of financial assets impairment was transfer to “Loss of credit impairment” in the period |
| Credit impairment loss | -4,348,457.12 | -100.00% | Same as “Assets impairment loss” | |
| Other income | 15,924,209.49 | 10,367,452.07 | 53.60% | Government grants received in the period increased from a year earlier |
| Investment income | -3,294,794.60 | 23,858,193.30 | -113.81% | Income from financing in the period declined on a y-o-y basis |
| Changing income of fair value | 17,239,305.01 | -3,292,159.49 | 623.65% | Change of the fair value for FXA (Forward Exchange Agreement) carried out in the period |
| Assets disposal income | -786,764.45 | 3,634,169.59 | -121.65% | The income from non-current assets disposal decreased on a y-o-y basis |
| Non-business expenditure | 1,901,268.37 | 16,552.57 | 11,386.24% | Relocation expenditure from subsidiary Sichuan Air Conditioner increased on a y-o-y basis |
| Minority interest | -5,022,513.61 | -1,101,397.78 | -356.01% | Some of the wholly-owned subsidiary have deficit in the period with a y-o-y increased |
(III) Changes and reasons of items in cash flow statement
In RMB
| Item | Amount at the period | Amount at the same period of last year | Changes ratio | Reasons of changes |
| Write-back of tax received | 67,038,256.22 | 142,336,736.25 | -52.90% | The export rebate received in the period decreased from a year earlier |
| Other cash received in connection with business activities | 73,527,737.20 | 8,641,836.66 | 750.83% | Collection of the operational limited monetary fund in the period |
| Taxes paid | 159,372,262.81 | 65,401,069.62 | 143.68% | Taxes paid in the period increased on a y-o-y basis |
| Cash received from investment income | 1,512,445.59 | 30,148,051.45 | -94.98% | The income from entrusted financial management received in the period declined on a y-o-y basis |
| Cash paid for investments | 424,000,000.00 | 1,080,000,000.00 | -60.74% | Principal of entrusted financing are paid in the Period declined from a year earlier |
| Other cash paid concerning investing activities | 5,481,620.00 | 10,010,000.00 | -45.24% | Loss from forward foreign exchange contract delivery declined on a y-o-y basis |
| Cash paid for dividend/profit distribution or interest expenses | 35,295,622.65 | 16,030,019.50 | 120.18% | Cash dividend paid in the period |
| Other cash paid concerning financing activities | 25,073,514.40 | 0.00 | 100.00% | The funding-constrained monetary funds increased on a y-o-y basis |
II. Analysis and explanation of significant events and their influence and solutions
√ Applicable □Not applicable(I) Particular about process of the fund raised and investment of fund raised in the report periodThe Company implemented a private placement of A-share in year of 2016, totally 1,569,999,998.84 Yuanraised, net money raised amounting to 1,540,732,722.76 Yuan after deducted vary issuance costs (tax included)29,267,276.08 Yuan.
The resolutions of the 16th session of the 9th Board of Directors of the Company, the 8th session of the 9thBoard of Supervisors of the Company, and the 3rd Extraordinary General Meeting of 2018 passed, and theindependent directors consented, and the sponsor institution made unanimous verification opinions to agree thecompany to use the idle raised funds of not exceeding RMB 940 million to invest in the principal-protected
financial products with high security, good liquidity and allotted time of single item not more than one year, theauthorization period is valid for one year from the date of approval by the company’s general meeting ofshareholders. Up to now, the company is normatively using the raised funds in accordance with thedecision-making and relevant regulations and requirements.
Ended as 31 March 2018, actually fund of raised used accumulative amounted as 726,039,989.35 Yuan intotal, balance of the account for fund raised counted as 907,308,197.77 Yuan (including interest incomeaccumulative amounted as 10,993,276.01 Yuan and income from financial product at expiration 81,474,847.34Yuan, as well as 9040000 million Yuan financial products purchased by idle temporary fund-raising)
The Company accumulative used the fund raised amounted as 726,039,989.35 Yuan, the use of purposeincluding: intelligent construction has 127,357,924.32 Yuan in used; R&D ability for intelligence and newproducts for intelligent household appliance has 282,800,601.26 Yuan in used; smart life project totally used45,001,400.00 Yuan; used in current fund supplementary counted as 270,880,063.77 Yuan (including savinginterest of 147,341.01 Yuan)
The resolutions of the 20th session of the 9th Board of Directors and the 11th session of the 9th Board ofSupervisors of the Company agreed to postpone the date of the intelligent manufacturing construction project,intelligent R&D capacity building and intelligent home appliance technology development project reaching theexpected usable condition to the end of December 2021. At the same time, the company’s independent directorshave issued independent opinions of consent, and the company’s sponsor institution Shenwan Hongyuan issued aunanimous verification opinion. The Intelligent Life project is implemented by Changmei Technology Co., Ltd.,this project is in operation.
(II) Implementation for annual performance incentive fund
On August 9, 2012 and August 28, 2012, the Company considers the adoption of "Hefei Meiling annualperformance incentive fund implementation plan" (hereinafter referred to as "" stimulus "") on the 16th meeting ofthe 7th board of directors and the 2012-second provisional shareholders meeting. Details were disclosed oninformation disclosure media appointed by the Company as "Securities Times", "Chinese Securities Daily","Hong Kong Commercial Daily" and the Juchao network (www.cninfo.com.cn) on August 10, 2012 and August29 in the form of announcement (No.: 2012-028, No.:2012-035).
1. Implementation about 2012, 2013, 2014 and 2016 performance incentive fund provision anddistribution plan
See details in "Implementation of the company's annual incentive fund" in "XI Implementation of thecompany's stock incentive plan, employee stock ownership plan, or other employee incentive measures" in"Section V Important Events" of the company's "2018 Annual Report" disclosed on 29 March 2019.
Up to the end of this reporting period, the company's stock purchased by some 2012 annual performanceincentive objects (non-directors, supervisors and senior management), 2013 annual performance incentive objects(non-directors, supervisors and senior management), the 2014 annual performance incentive objects(non-directors, supervisors and senior management) with their granted 2012 annual performance incentive fundsand own funds and 2013 & 2014 annual performance incentive funds and own funds have been fully released for
trading; details of the share reduction for the above mentioned objects see below; if the holding period of thecompany’s shares which are purchased by the 2016 annual performance incentive targets with their awarded 2016annual performance incentive funds and their own funds is less than two years, all shares purchased by theincentive targets will be locked in accordance with their commitments. The Company’s shares purchased by thecurrent directors, supervisors and senior executives among the performance incentive targets due to theimplementation of the 2012, 2013, 2014 and 2016 annual performance incentive plans have not reduced theshareholdings.
2. Shareholding and reducing of performance incentive objects of the CompanyEnded as 31 March 2019, shares hold by all incentive objects amounting to 11,728,680 shares, a 1.1228 % intotal share capital of the Company, including 10,038,787 A-share, a 0.9610% in total share capital and 1,689,893B-share, a 0.1618% in total share capital of the Company. Other grantees of the 2012, 2013, 2014 and 2016incentive plan (not being directors, supervisors and senior management) have reduced holding of 4,785,135 inaggregate, accounting for about 0.4581% of the total share capital and 68,750 shares are reduced in the reportingperiod.
(III) Transaction with Sichuan Changhong Group Finance Co., LtdThe resolution of the 34th meeting of the 8th board of directors on August 9, 2017 and the secondextraordinary general meeting of 2017 on September 12, 2017 approved and agreed the company to continuecarry out the financial service cooperation with Sichuan Changhong Group Finance Co., Ltd. (hereinafter referredto as “Changhong Finance Company”) and sign a triennial Financial Service Agreement. According to the“Proposal on Expected Continuous Related Transactions with Sichuan Changhong Group Finance Co., Ltd. in2019” approved by the deliberations of the 17th session of the 9th Board of Directors, the 9th session of the 9thBoard of Supervisors and the 4th Extraordinary General Meeting of 2018 of the Company, Changhong FinanceCompany provides a series of financial services such as deposits and loans within the scope of its business inaccordance with the requirements of the Company and its subsidiaries. The related transactions between thecompany and its subsidiaries and Changhong Finance Company from the beginning of the year to the end of thereporting period are as follows:
In RMB
| Item | Opening balance | Increased during the Year | Decreased during the Year | Ending balance | Interest, handling charge paid or received |
| I. Savings in Changhong Group Finance Company | 3,119,117,207.91 | 6,648,303,460.19 | 7,427,219,085.87 | 2,340,201,582.23 | 21,915,303.29 |
| II. Borrowings from Changhong Group Finance Company | |||||
| 1.Short-term loans |
| Item | Opening balance | Increased during the Year | Decreased during the Year | Ending balance | Interest, handling charge paid or received |
| 2.Long-term loans | |||||
| III. Other financial business | |||||
| 1.Notes drawing | 819,806,514.07 | 471,939,007.48 | 412,786,235.76 | 878,959,285.79 | 214,728.43 |
| 2.Notes discounted | 772,233,395.98 | 345,625,142.76 | 148,981,669.33 | 968,876,869.41 | 334,593.52 |
(IV) Other significant events
| Overview | Date for disclosure | Information index for temporary report disclosure |
| Mr. Wu Dinggang, the former president of the company, applied for resignation as president of the Company due to changes in his personal work, but he will continue to serve as the vice president of the company, a member of the strategy committee and a member of the remuneration and appraisal committee of the board of directors. | 2019-1-12 | Juchao Website：http://www.cninfo.com.cn (No. 2019-001) |
| The company’s board resolution passed and agreed to authorize the company’s directors and vice president Mr. Kou Huameng to act on the president’s behalf, and the allotted time is from January 11, 2019, i.e. the date on which the board resolution takes effect, to the date on which the board of directors engages a new president. | 2019-1-12 | Juchao Website：http://www.cninfo.com.cn (No. 2019-002) |
| On January 14, 2019, the company received a Notification Letter from Caitong Fund Management Co., Ltd. About the Progress of Reducing Equity Holding of Changhong Meiling Co., Ltd.” from Caitong Fund Management Co., Ltd. (hereinafter referred to as “Caitong Fund”) which held more than 5% shares of the company, Caitong Fund reduced equity holdings of 12,160,298 shares of the company’s shares through centralized bidding transaction and block trading method from October 18, 2018 to January 13, 2019, accounting for 1.1641% of the Company’s total share capital. | 2019-1-15 | Juchao Website：http://www.cninfo.com.cn (No. 2019-003) |
| The resolutions of the board of directors, the board of supervisors and the general meeting of shareholders of the company passed and agreed the company to provide credit guarantees totaling 2980 million yuan to the wholly-owned and holding subsidiaries of the company in 2019. For the guarantee amount newly increased in this year and the amount of renewal in the current year, the guarantee period is one year. | 2019-1-30 2019-2-14 2019-2-23 | Juchao Website：http://www.cninfo.com.cn (No. 2019-004, No. 2019-005, No. 2019-006, No. 2019-008, No. 2019-010, No. 2019-012) |
| The resolution of the company’s board of director passed and agreed the company to apply for a special credit line of maximum 300 million yuan in the bill pool of Hefei Branch of China Everbright Bank Co., Ltd. | 2019-1-30 | Juchao Website：http://www.cninfo.com.cn (No. 2019-003, No. 2019-007) |
| During the reporting period, the company used idle raised funds to purchase 424 million yuan of principal-protected bank financial products, including 100 million yuan for the financial products of China Guangfa Bank, 100 million yuan for the financial products of Shanghai Pudong Development Bank and 224 million yuan for the financial products of Bank of Communications. As of the end of the reporting period, the balance of the idle raised funds that the company used to purchase the | 2019-2-1 | Juchao Website：http://www.cninfo.com.cn (No. 2019-009) |
| principal-protected bank financial products was 904 million yuan. | ||
| On February 13, 2019, the company received the “Short-Form Report on Changes in Equity of Changhong Meiling Co., Ltd.” from Caitong Fund, during the period from January 14, 2019 to February 12, 2019, the assets management plan of Caitong Fund reduced the equity holding of 2,600,729 shares of Changhong Meiling by centralized bidding transactions, with a total reduction amount of 8,115,894.30 yuan, accounting for 0.25% of the company’s total share capital. After this change in equity, Caitong Fund (on behalf of its asset management plan) holds 52,229,844 shares of Changhong Meiling, accounting for 4.999995% of Changhong Meiling’s total share capital. | 2019-2-14 | Juchao Website：http://www.cninfo.com.cn (No. 2019-011) |
| On February 25, 2019, the company received the Notice About Increasing Shareholding of Changhong Meiling Co., Ltd. and the Equity Changes of Sichuan Changhong Electric Co., Ltd. and its concerted action person Changhong (Hong Kong) Trading Co., Ltd.” (hereinafter referred to as “Notice”). During the period from November 12, 2018 to February 25, 2019, Sichuan Changhong and its concerted action person Changhong (Hong Kong) Trading Co., Ltd. (hereinafter referred to as “HK Changhong” or “Concerted Action Person”) bought 16,231,024 shares of Changhong Meiling (including 13,751,756 shares of Changhong Meiling A shares and 2,479,268 shares of Changhong Meiling B shares) by bidding transaction through the secondary market, accounting for 1.55% of Changhong Meiling’s total share capital, resulting in the equity ratio of Changhong Meiling held by Sichuan Changhong and Concerted Action Person increased by 5% from September 2009 to February 2019. | 2019-2-26 2019-2-28 | Juchao Website：http://www.cninfo.com.cn (No. 2019-013) |
| In late March 2019, the company received the “Notice of Drafted Civil Penalty” issued by U.S. Department of Energy (“DOE”). | 2019-3-26 | Juchao Website：http://www.cninfo.com.cn (No. 2019-014) |
| The resolution of company’s board of directors passed and agreed the company to make changes in the corresponding accounting policies according to the relevant regulations and requirements of the Ministry of Finance so as to apply to the new regulations. This matter still needs to be submitted to the company’s 2018 annual general meeting of shareholders for consideration and approval. | 2019-3-29 | Juchao Website：http://www.cninfo.com.cn (No. 2019-015, No. 2019-018) |
| The resolution of company’s board of directors passed and agreed the company and its subsidiaries to carry out forward foreign exchange fund transaction business from July 1, 2019 to June 30, 2020, the business transaction balances do not exceed US$650 million (mainly including: US dollar, Australian dollar, Euro, other foreign exchanges are all converted into US dollars), the delivery period of a single business should be less than one year. This matter still needs to be submitted to the company’s 2018 annual general meeting of shareholders for consideration and approval. | 2019-3-29 | Juchao Website：http://www.cninfo.com.cn (No. 2019-015, No. 2019-020) |
| Being deliberated and approved by resolution of the Board, the intended usable state for “Construction of intelligent manufacturing project” and “Construction of intelligent R&D capability and new products development of the intelligent appliance technology” (the investment projects with privately placement of 2016) will postpone | 2019-3-29 | Juchao Website：http://www.cninfo.com.cn (No. 2019-015, No. 2019-021) |
| to end of December in 2021. This matter still needs to be submitted to the company’s 2018 annual general meeting of shareholders for consideration and approval. | ||
| The resolution of company’s board of directors passed and agreed to amend some articles of the Articles of Association, the Rules of Procedure for the General Meeting of Shareholders, and the Rules of Procedure for the Board of Directors. This matter still needs to be submitted to the company’s 2018 annual general meeting of shareholders for consideration and approval. | 2019-3-29 | Juchao Website：http://www.cninfo.com.cn (No. 2019-015, No. 2019-022) |
| The resolution of company’s board of directors passed and agreed the company and its subsidiaries, including Zhongshan Changhong Electric Co., Ltd., Guangdong Changhong Ridian Technology Co., Ltd. and Hongyuan Geothermal Heat Pump Technology (Zhongshan) Co., Ltd., donated a total of 130,000 yuan to the Nantou Town People’s Government of Zhongshan City for expanding the Nantou Town Central Primary School. | 2019-3-29 | Juchao Website：http://www.cninfo.com.cn (No. 2019-015, No. 2019-023) |
(v) Implementation progress of shares buy-back□ Applicable √ Not applicable(vi) Implementation progress of the reduction of repurchases shares by centralized bidding□ Applicable √ Not applicable
III. Commitments completed in Period and those without completed till end of the Periodfrom actual controller, shareholders, related parties, purchaser and companies
□ Applicable √ Not applicableThe Company has no commitments completed in Period and those without completed till end of the Periodfrom actual controller, shareholders, related parties, purchaser and companies.
IV. Forecast of operation performance from Jan. – June of 2019
Estimation on accumulative net profit from the beginning of the year to the end of next report period to beloss probably or the warning of its material change compared with the corresponding period of the last year andexplanation on reason
□ Applicable √ Not applicable
V. Securities Investment
□ Applicable √ Not applicable
No security investment in Period.
VI. Derivative investment
√ Applicable □Not applicable
In 10 thousand Yuan
| Operator | Related relationship | Whether related trade or not | Type | Initial investment | Start date | End date | Investment amount at period-begin | Amount purchased in the reporting period | Amount sales in the reporting period | Amount of reserve for devaluation of withdrawing (if applicable) | Investment amount at period-end | Ratio of investment amount at period-end in net assets of the Company at period-end | Actual gains/losses in period |
| Financial institution | N/A | No | Forward foreign exchange contract | 200,656.30 | 2017-9-29 | 2019-12-23 | 149,739.86 | 50,916.44 | 43,964.10 | -- | 157,413.54 | 30.41% | -721.36 |
| Total | 200,656.30 | -- | -- | 149,739.86 | 50,916.44 | 43,964.10 | -- | 157,413.54 | 30.41% | -721.36 | |||
| Capital resource (if applicable) | Self-owned capital | ||||||||||||
| Lawsuit involved (if applicable) | Not applicable | ||||||||||||
| Disclosure date for approval from the Board for investment of derivatives (if applicable) | 2018-3-30 | ||||||||||||
| Disclosure date for approval from board of shareholders for investment of derivatives (if applicable) | 2018-5-11 | ||||||||||||
| 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.) | 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 Bank of China, Agricultural Bank of China, Industrial and Commercial Bank of | ||||||||||||
| China, China Construction Bank and other chines e-funded banks with a joint-stock system as Everbright and Industrial Bank, as well as the foreign-funded banks as UOB, Oversea Chinese Bank and the Bank of East Asia 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. | |
| 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.) | 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 RMB 7,213,600. |
| Specific principle of the accounting policy and calculation for derivatives in the Period compared with last period in aspect of major changes | Not applicable |
| Special opinion on derivative investment and risk control by independent directors | Upon inspection, the independent directors of the Company believes that: During the reporting period, the Company carried out its foreign exchange forward deals in strict compliance with the standardized operation guidelines for listed issuer on main board (2015 amended) issued by Shenzhen Stock Exchange, the Articles of Association, Authorization Management of the Company, Management System in relating to Foreign Exchange Forward Deals of Changhong Meiling Co., Ltd., and these deals were conducted within the authorization scope under general meeting and board meeting. The Company conducts no foreign exchange transactions on the purpose of getting profit only, all of the forward foreign exchange transactions are operates based on normal operating and production, which is relying on specific business operations with purpose of avoiding the preventing the risks in exchange rate. The forward foreign exchange transactions of the Company is related with the routine operation needs of the Company are beneficial to prevent the exchange risks exposed by import and export business and thus met its requirement for operation development. There was no speculative operation, no break of relevant rules and regulations and relevant business was conducted under corresponding decision-making procedures. Interests of the Company and entire shareholders, especially minority shareholders, were not prejudiced. |
VII. Registration form for receiving research, communication and interview in the reportperiod
√ Applicable □ Not applicable
| Time | Way | Type | Basic situation index of investigation |
| 2019-2-26 | Field research | Institute | http://www.cninfo.com.cn/new/disclosure/stock?orgId=gssz0000521&stockCode=000521# |
VIII. Guarantee outside against the regulation
□Applicable √Not applicableThe Company had no guarantee outside against the regulation in the reporting period.
IX. Non-operational fund occupation from controlling shareholders and its related party
□ Applicable √ Not applicableThe Company had no non-operational fund occupation from controlling shareholders or its related party inthe reporting period.
Section IV. Financial Statement
I. Financial statement
1. Consolidate balance sheet
Prepared by Changhong Meiling Co., Ltd.
In RMB
| Items | 2019-3-31 | 2018-12-31 |
| Current assets: | ||
| Monetary fund | 3,298,560,072.14 | 4,596,077,557.40 |
| Settlement provisions | ||
| Capital lent | ||
| Transactional financial assets | 8,038,858.13 | |
| Financial assets measured by fair value and with variation reckoned into current gains/losses | 9,253,635.59 | |
| Derivative financial assets | ||
| Note receivable and account receivable | 4,669,700,970.50 | 4,058,819,532.50 |
| Including: Notes receivable | 2,215,850,948.58 | 2,387,830,887.74 |
| Accounts receivable | 2,453,850,021.92 | 1,670,988,644.76 |
| Account paid in advance | 87,614,787.29 | 86,180,459.26 |
| Insurance receivable | ||
| Reinsurance receivables | ||
| Contract reserve of reinsurance receivable | ||
| Other account receivable | 110,894,324.39 | 62,129,574.17 |
| Including: Interest receivable | 560,000.00 | 2,653,712.36 |
| Dividends receivable | ||
| Buying back the sale of financial assets | ||
| Inventories | 2,284,085,805.76 | 2,174,436,573.67 |
| Contractual assets | ||
| Assets held for sale | ||
| Non-current assets maturing within one year | ||
| Other current assets | 1,175,918,616.79 | 1,184,686,956.96 |
| Total current assets | 11,634,813,435.00 | 12,171,584,289.55 |
| Non-current assets: | ||
| Loans and payments on behalf | ||
| Debt investment | ||
| Available-for-sale financial assets | 45,000,000.00 | |
| Other debt investment | ||
| Held-to-maturity investments | ||
| Long-term receivables | ||
| Long-term equity investments | 63,951,984.06 | 61,869,440.55 |
| Investment in other equity instrument | ||
| Other non-current financial assets | 45,000,000.00 | |
| Investment real estate | 46,495,016.63 | 46,846,507.41 |
| Fixed assets | 1,795,481,364.06 | 1,733,957,012.14 |
| Construction in progress | 492,381,189.77 | 464,558,352.60 |
| Productive biological assets | ||
| Oil and natural gas assets | ||
| Right-of-use assets | ||
| Intangible assets | 819,449,590.61 | 817,579,958.94 |
| Research and development costs | 118,455,247.67 | 108,210,966.60 |
| Goodwill | ||
| Long-term deferred expenses | ||
| Deferred income tax assets | 106,886,823.58 | 112,203,656.75 |
| Other non-current assets | ||
| Total non-current assets | 3,488,101,216.38 | 3,390,225,894.99 |
| Total assets | 15,122,914,651.38 | 15,561,810,184.54 |
| Current liabilities | ||
| Short-term borrowings | 2,099,804,318.77 | 2,336,373,929.62 |
| Loan from central bank | ||
| Capital borrowed | ||
| Transactional financial liability | 37,130,673.69 | |
| Financial liability measured by fair value and with variation reckoned into current gains/losses | 55,586,666.70 | |
| Derivative financial liability | ||
| Notes payable & account payable | 5,783,696,601.37 | 6,009,929,380.98 |
| Accounts received in advance | 445,670,416.05 | 354,551,354.80 |
| Selling financial asset of repurchase | ||
| Absorbing deposit and interbank deposits | ||
| Agent buying and selling securities | ||
| Acting underwriting securities | ||
| Wage payable | 126,298,833.73 | 163,638,627.79 |
| Taxes payable | 72,320,922.91 | 109,753,432.17 |
| Other accounts payable | 641,578,423.45 | 660,320,360.26 |
| Including: Interest payable | 13,609,466.80 | 7,519,756.26 |
| Dividend payable | 3,234,928.37 | 17,317,286.45 |
| Handling fees and commissions payable | ||
| Reinsurance payable | ||
| Contractual liability | ||
| Liability held for sale | ||
| Non-current liabilities due within one year | 275,439,053.10 | 273,682,737.85 |
| Other current liabilities | ||
| Total current liabilities | 9,481,939,243.07 | 9,963,836,490.17 |
| Non-current liabilities: | ||
| Insurance contract reserve | ||
| Long-term loans | 1,920,000.00 | 1,920,000.00 |
| Bonds payable | ||
| Including: preferred stock | ||
| Perpetual capital securities | ||
| Lease liability | ||
| Long-term account payable | 4,693,693.60 | 5,017,208.00 |
| Long term employee compensation payable | 17,493,733.00 | 19,073,101.29 |
| Accrued liabilities | 273,233,043.84 | 273,063,677.21 |
| Deferred income | 164,718,767.14 | 160,250,963.60 |
| Deferred income tax liabilities | 3,003,916.98 | 3,098,699.11 |
| Other non-current liabilities | ||
| Total non-current liabilities | 465,063,154.56 | 462,423,649.21 |
| Total liabilities | 9,947,002,397.63 | 10,426,260,139.38 |
| Owners’ equity: | ||
| Share capital | 1,044,597,881.00 | 1,044,597,881.00 |
| Other equity instrument |
| Including: preferred stock | ||
| Perpetual capital securities | ||
| Capital public reserve | 2,684,369,598.46 | 2,684,369,598.46 |
| Less: Inventory shares | ||
| Other comprehensive income | -19,191,702.01 | -18,143,569.26 |
| Special reserve | ||
| Surplus reserve | 399,082,433.26 | 400,673,993.50 |
| Provision of general risk | ||
| Retained profit | 956,910,038.38 | 904,232,582.87 |
| Total owner’s equity attributable to parent Company | 5,065,768,249.09 | 5,015,730,486.57 |
| Minority interests | 110,144,004.66 | 119,819,558.59 |
| Total owner’s equity | 5,175,912,253.75 | 5,135,550,045.16 |
| Total liabilities and owner’s equity | 15,122,914,651.38 | 15,561,810,184.54 |
Legal Representative: Li WeiPerson in charge of accounting works: Pang HaitaoPerson in charge of accounting institute: Luo Bo
2. Balance Sheet of Parent Company
In RMB
| Items | 2019-3-31 | 2018-12-31 |
| Current assets: | ||
| Monetary fund | 1,888,933,793.71 | 2,897,004,041.87 |
| Transactional financial assets | 8,038,858.13 | |
| Financial assets measured by fair value and with variation reckoned into current gains/losses | 9,253,635.59 | |
| Derivative financial assets | ||
| Note receivable and account receivable | 3,675,549,527.97 | 3,483,525,970.01 |
| Including: Notes receivable | 2,161,492,040.09 | 2,433,243,946.64 |
| Accounts receivable | 1,514,057,487.88 | 1,050,282,023.37 |
| Account paid in advance | 85,121,554.58 | 58,710,427.38 |
| Other account receivable | 169,032,349.14 | 182,744,033.52 |
| Including: Interest receivable | 560,000.00 | 2,653,712.36 |
| Dividends receivable |
| Inventories | 984,874,854.85 | 911,130,106.30 |
| Contractual assets | ||
| Assets held for sale | ||
| Non-current assets maturing within one year | ||
| Other current assets | 1,106,511,243.92 | 1,113,987,528.70 |
| Total current assets | 7,918,062,182.30 | 8,656,355,743.37 |
| Non-current assets: | ||
| Debt investment | ||
| Available-for-sale financial assets | 45,000,000.00 | |
| Other debt investment | ||
| Held-to-maturity investments | ||
| Long-term receivables | ||
| Long-term equity investments | 1,741,080,806.77 | 1,731,109,903.70 |
| Investment in other equity instrument | ||
| Other non-current financial assets | 45,000,000.00 | |
| Investment real estate | 7,532,990.42 | 7,618,550.16 |
| Fixed assets | 1,080,514,627.58 | 1,082,915,540.08 |
| Construction in progress | 130,770,479.74 | 125,064,106.10 |
| Productive biological assets | ||
| Oil and natural gas assets | ||
| Right-of-use assets | ||
| Intangible assets | 459,627,275.68 | 462,425,105.64 |
| Research and development costs | 75,337,664.97 | 57,383,653.72 |
| Goodwill | ||
| Long-term deferred expenses | ||
| Deferred income tax assets | 76,189,368.54 | 78,357,299.17 |
| Other non-current assets | ||
| Total non-current assets | 3,616,053,213.70 | 3,589,874,158.57 |
| Total assets | 11,534,115,396.00 | 12,246,229,901.94 |
| Current liabilities | ||
| Short-term borrowings | 1,535,198,900.65 | 1,911,719,726.13 |
| Transactional financial liability | 13,467,437.90 | |
| Financial liability measured by fair value and with variation reckoned into current gains/losses | 19,893,875.00 |
| Derivative financial liability | ||
| Notes payable & account payable | 3,709,869,919.69 | 4,013,263,630.45 |
| Accounts received in advance | 102,234,815.49 | 105,815,140.88 |
| Contractual liability | ||
| Wage payable | 10,756,063.71 | 31,271,182.48 |
| Taxes payable | 16,244,613.19 | 21,992,129.58 |
| Other accounts payable | 413,170,461.81 | 427,293,961.56 |
| Including: Interest payable | 10,022,140.43 | 5,801,215.14 |
| Dividend payable | 3,234,928.37 | 17,317,286.45 |
| Liability held for sale | ||
| Non-current liabilities due within one year | 260,355,541.04 | 258,588,504.48 |
| Other current liabilities | ||
| Total current liabilities | 6,061,297,753.48 | 6,789,838,150.56 |
| Non-current liabilities: | ||
| Long-term loans | 1,920,000.00 | 1,920,000.00 |
| Bonds payable | ||
| Including: preferred stock | ||
| Perpetual capital securities | ||
| Lease liability | ||
| Long-term account payable | ||
| Long term employee compensation payable | 17,493,733.00 | 19,073,101.29 |
| Accrued liabilities | 266,465,514.75 | 266,641,323.73 |
| Deferred income | 59,577,173.43 | 53,118,676.50 |
| Deferred income tax liabilities | ||
| Other non-current liabilities | ||
| Total non-current liabilities | 345,456,421.18 | 340,753,101.52 |
| Total liabilities | 6,406,754,174.66 | 7,130,591,252.08 |
| Owners’ equity: | ||
| Share capital | 1,044,597,881.00 | 1,044,597,881.00 |
| Other equity instrument | ||
| Including: preferred stock | ||
| Perpetual capital securities | ||
| Capital public reserve | 2,753,017,007.10 | 2,753,017,007.10 |
| Less: Inventory shares |
| Other comprehensive income | ||
| Special reserve | ||
| Surplus reserve | 398,864,267.58 | 400,455,827.82 |
| Retained profit | 930,882,065.66 | 917,567,933.94 |
| Total owner’s equity | 5,127,361,221.34 | 5,115,638,649.86 |
| Total liabilities and owner’s equity | 11,534,115,396.00 | 12,246,229,901.94 |
Legal Representative: Li WeiPerson in charge of accounting works: Pang HaitaoPerson in charge of accounting institute: Luo Bo
3. Consolidated Profit Statement
In RMB
| Items | Current Period | Last Period |
| I. Total operating income | 4,222,693,607.41 | 4,245,506,565.60 |
| Including: Operating income | 4,222,693,607.41 | 4,245,506,565.60 |
| Interest income | ||
| Insurance gained | ||
| Handling fees and commissions income | ||
| II. Total operating cost | 4,184,854,861.76 | 4,213,805,314.53 |
| Including: Operating cost | 3,378,498,741.74 | 3,395,348,853.41 |
| Interest expense | ||
| Handling fees and commissions expenses | ||
| Cash surrender value | ||
| Net amount of expense of compensation | ||
| Net amount of withdrawal of insurance contract reserve | ||
| Bonus expense of guarantee slip | ||
| Reinsurance expense | ||
| Taxes and surcharge | 41,279,976.29 | 25,629,526.25 |
| Sales expenses | 613,574,029.12 | 659,262,709.74 |
| Administration expenses | 83,140,320.57 | 73,449,404.70 |
| R&D expenses | 52,209,017.77 | 44,275,581.57 |
| Financial expenses | 12,386,522.10 | -1,695,567.00 |
| Including: interest expenses | 27,122,066.28 | 22,081,680.01 |
| Interest income | 25,211,309.83 | 25,860,272.23 |
| Losses of devaluation of asset | 8,114,711.29 | 17,534,805.86 |
| Loss of credit impairment | -4,348,457.12 | 0.00 |
| Add: other income | 15,924,209.49 | 10,367,452.07 |
| Investment income (Loss is listed with “-”) | -3,294,794.60 | 23,858,193.30 |
| Including: Investment income on affiliated Company and joint venture | 2,406,312.81 | -1,987,586.69 |
| Exchange income (Loss is listed with “-”) | ||
| Net exposure hedging income (Loss is listed with “-”) | ||
| Changing income of fair value(Loss is listed with “-”) | 17,239,305.01 | -3,292,159.49 |
| Income on disposal of assets (Loss is listed with “-”) | -786,764.45 | 3,634,169.59 |
| III. Operating profit (Loss is listed with “-”) | 66,920,701.10 | 66,268,906.54 |
| Add: Non-operating income | 1,031,286.96 | 1,557,612.64 |
| Less: Non-operating expense | 1,901,268.37 | 16,552.57 |
| IV. Total Profit (Loss is listed with “-”) | 66,050,719.69 | 67,809,966.61 |
| Less: Income tax | 10,546,657.77 | 12,649,511.71 |
| V. Net profit (Net loss is listed with “-”) | 55,504,061.92 | 55,160,454.90 |
| (i) Classify by business continuity | ||
| 1.continuous operating net profit (net loss listed with ‘-”) | 55,504,061.92 | 55,160,454.90 |
| 2.termination of net profit (net loss listed with ‘-”) | ||
| (ii) Classify by ownership | ||
| 1.Net profit attributable to owner’s of parent company | 60,526,575.53 | 56,261,852.68 |
| 2.Minority shareholders’ gains and losses | -5,022,513.61 | -1,101,397.78 |
| VI. Net after-tax of other comprehensive income | -2,085,506.09 | -6,515,999.71 |
| Net after-tax of other comprehensive income attributable to owners of parent company | -1,048,132.75 | -4,584,887.13 |
| (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 | -1,048,132.75 | -4,584,887.13 |
| 1.Other comprehensive income under equity method that can transfer to gain/loss | ||
| 2.Change of fair value of other debt investment | ||
| 3.gain/loss of fair value changes for available-for-sale financial assets | ||
| 4.Amount of financial assets re-classify to other comprehensive income | ||
| 5.Gain/loss of held-to-maturity investments that re-classify to available-for-sale financial asset | ||
| 6.Credit impairment provision for other debt investment | ||
| 7.Cash flow hedging reserve | ||
| 8.Translation differences arising on translation of foreign currency financial statements | -1,048,132.75 | -4,584,887.13 |
| 9.Other | ||
| Net after-tax of other comprehensive income attributable to minority shareholders | -1,037,373.34 | -1,931,112.58 |
| VII. Total comprehensive income | 53,418,555.83 | 48,644,455.19 |
| Total comprehensive income attributable to owners of parent Company | 59,478,442.78 | 51,676,965.55 |
| Total comprehensive income attributable to minority shareholders | -6,059,886.95 | -3,032,510.36 |
| VIII. Earnings per share: | ||
| (i) Basic earnings per share | 0.0579 | 0.0539 |
| (ii) Diluted earnings per share | 0.0579 | 0.0539 |
Enterprise combine under the same control in the Period, the combined party realized net profit of 0 Yuan before combination, andrealized 0 Yuan at last period for combined partyLegal Representative: Li Wei
Person in charge of accounting works: Pang HaitaoPerson in charge of accounting institute: Luo Bo
4. Profit Statement of Parent Company
In RMB
| Items | Current Period | Last Period |
| I. Operating income | 2,235,042,419.73 | 2,108,581,292.40 |
| Less: Operating cost | 1,952,295,548.80 | 1,809,944,883.90 |
| Taxes and surcharge | 22,080,703.51 | 13,489,765.30 |
| Sales expenses | 182,856,903.44 | 204,911,029.89 |
| Administration expenses | 33,905,037.20 | 29,338,556.94 |
| R&D expenses | 22,605,067.51 | 23,195,836.24 |
| Financial expenses | 3,903,872.42 | 307,773.98 |
| Including: interest expenses | 19,232,245.83 | 15,868,162.75 |
| Interest income | 15,126,621.45 | 13,139,035.21 |
| Losses of devaluation of asset | 3,052,384.53 | -1,979,239.78 |
| Loss of credit impairment | -4,032,480.31 | 0.00 |
| Add: other income | 6,673,926.51 | 4,241,513.91 |
| Investment income (Loss is listed with “-”) | 1,728.66 | 20,171,924.50 |
| Including: Investment income on affiliated Company and joint venture | 3,970,903.07 | 559,794.36 |
| Net exposure hedging income (Loss is listed with “-”) | ||
| Changing income of fair value(Loss is listed with “-”) | 5,211,659.64 | -9,649,410.27 |
| Income on disposal of assets (Loss is listed with “-”) | -645,262.95 | -627,343.74 |
| II. Operating profit (Loss is listed with “-”) | 29,617,434.49 | 43,509,370.33 |
| Add: Non-operating income | 188,670.00 | 1,508,872.27 |
| Less: Non-operating expense | ||
| III. Total Profit (Loss is listed with “-”) | 29,806,104.49 | 45,018,242.60 |
| Less: Income tax | 2,167,930.63 | 5,037,110.64 |
| IV. Net profit (Net loss is listed with “-”) | 27,638,173.86 | 39,981,131.96 |
| (i)continuous operating net profit (net loss listed with ‘-”) | 27,638,173.86 | 39,981,131.96 |
| (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.gain/loss of fair value changes for available-for-sale financial assets | ||
| 4.Amount of financial assets re-classify to other comprehensive income | ||
| 5.Gain/loss of held-to-maturity investments that re-classify to available-for-sale financial asset | ||
| 6.Credit impairment provision for other debt investment | ||
| 7.Cash flow hedging reserve | ||
| 8.Translation differences arising on translation of foreign currency financial statements | ||
| 9.Other | ||
| VI. Total comprehensive income | 27,638,173.86 | 39,981,131.96 |
| VII. Earnings per share: | ||
| (i) Basic earnings per share | 0.0265 | 0.0383 |
| (ii) Diluted earnings per share | 0.0265 | 0.0383 |
Legal Representative: Li WeiPerson in charge of accounting works: Pang Haitao
Person in charge of accounting institute: Luo Bo
5. Consolidated Cash Flow Statement
In RMB
| Items | Current Period | Last Period |
| I. Cash flows arising from operating activities: | ||
| Cash received from selling commodities and providing labor services | 3,904,690,858.42 | 3,116,283,648.67 |
| 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 | ||
| Net increase of amount from disposal financial assets that measured by fair value and with variation reckoned into current gains/losses | ||
| 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 | 67,038,256.22 | 142,336,736.25 |
| Other cash received concerning operating activities | 73,527,737.20 | 8,641,836.66 |
| Subtotal of cash inflow arising from operating activities | 4,045,256,851.84 | 3,267,262,221.58 |
| Cash paid for purchasing commodities and receiving labor service | 4,065,487,408.62 | 3,209,115,632.97 |
| 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 financial assets held for transaction purposes |
| 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 | 446,317,342.30 | 415,551,393.88 |
| Taxes paid | 159,372,262.81 | 65,401,069.62 |
| Other cash paid concerning operating activities | 295,623,725.22 | 348,569,436.98 |
| Subtotal of cash outflow arising from operating activities | 4,966,800,738.95 | 4,038,637,533.45 |
| Net cash flows arising from operating activities | -921,543,887.11 | -771,375,311.87 |
| II. Cash flows arising from investing activities: | ||
| Cash received from recovering investment | 430,000,000.00 | 540,000,000.00 |
| Cash received from investment income | 1,512,445.59 | 30,148,051.45 |
| Net cash received from disposal of fixed, intangible and other long-term assets | 557,933.20 | 252,000.00 |
| Net cash received from disposal of subsidiaries and other units | ||
| Other cash received concerning investing activities | 30,122,236.60 | 29,832,743.55 |
| Subtotal of cash inflow from investing activities | 462,192,615.39 | 600,232,795.00 |
| Cash paid for purchasing fixed, intangible and other long-term assets | 137,742,454.20 | 108,817,240.77 |
| Cash paid for investment | 424,000,000.00 | 1,080,000,000.00 |
| Net increase of mortgaged loans | ||
| Net cash received from subsidiaries and other units obtained | ||
| Other cash paid concerning investing activities | 5,481,620.00 | 10,010,000.00 |
| Subtotal of cash outflow from investing activities | 567,224,074.20 | 1,198,827,240.77 |
| Net cash flows arising from investing activities | -105,031,458.81 | -598,594,445.77 |
| III. Cash flows arising from financing activities | ||
| Cash received from absorbing investment | ||
| Including: Cash received from absorbing minority shareholders’ investment by subsidiaries | ||
| Cash received from loans | 470,219,380.02 | 607,619,100.00 |
| Cash received from issuing bonds | ||
| Other cash received concerning financing activities | ||
| Subtotal of cash inflow from financing activities | 470,219,380.02 | 607,619,100.00 |
| Cash paid for settling debts | 695,000,000.00 | 598,642,903.58 |
| Cash paid for dividend and profit distributing or interest paying | 35,295,622.65 | 16,030,019.50 |
| Including: Dividend and profit of minority shareholder paid by subsidiaries | ||
| Other cash paid concerning financing activities | 25,073,514.40 | |
| Subtotal of cash outflow from financing activities | 755,369,137.05 | 614,672,923.08 |
| Net cash flows arising from financing activities | -285,149,757.03 | -7,053,823.08 |
| IV. Influence on cash and cash equivalents due to fluctuation in exchange rate | -7,529,242.84 | -18,498,907.12 |
| V. Net increase of cash and cash equivalents | -1,319,254,345.79 | -1,395,522,487.84 |
| Add: Balance of cash and cash equivalents at the period -begin | 4,484,643,187.93 | 5,089,765,770.39 |
| VI. Balance of cash and cash equivalents at the period -end | 3,165,388,842.14 | 3,694,243,282.55 |
Legal Representative: Li WeiPerson in charge of accounting works: Pang HaitaoPerson in charge of accounting institute: Luo Bo
6. Cash Flow Statement of Parent Company
In RMB
| Items | Current Period | Last Period |
| I. Cash flows arising from operating activities: | ||
| Cash received from selling commodities and providing labor services | 2,044,451,401.10 | 1,622,336,432.60 |
| Write-back of tax received | 34,183,811.93 | 72,233,740.77 |
| Other cash received concerning operating activities | 14,223,467.81 | 208,146.11 |
| Subtotal of cash inflow arising from operating activities | 2,092,858,680.84 | 1,694,778,319.48 |
| Cash paid for purchasing commodities and receiving labor service | 2,460,080,220.15 | 1,634,525,578.72 |
| Cash paid to/for staff and workers | 146,712,285.95 | 139,285,545.18 |
| Taxes paid | 27,729,284.95 | 16,622,857.79 |
| Other cash paid concerning operating activities | 105,382,944.46 | 78,553,787.65 |
| Subtotal of cash outflow arising from operating activities | 2,739,904,735.51 | 1,868,987,769.34 |
| Net cash flows arising from operating activities | -647,046,054.67 | -174,209,449.86 |
| II. Cash flows arising from investing activities: | ||
| Cash received from recovering investment | 430,000,000.00 | 500,000,000.00 |
| Cash received from investment income | 1,512,445.59 | 30,015,681.60 |
| Net cash received from disposal of fixed, intangible and other long-term assets | 500,000.00 | 220,000.00 |
| Net cash received from disposal of subsidiaries and other units | ||
| Other cash received concerning investing activities | 208,059,288.34 | 14,230,005.57 |
| Subtotal of cash inflow from investing activities | 640,071,733.93 | 544,465,687.17 |
| Cash paid for purchasing fixed, intangible and other long-term assets | 54,735,486.93 | 34,937,488.72 |
| Cash paid for investment | 430,000,000.00 | 1,060,000,000.00 |
| Net cash received from subsidiaries and other units obtained | ||
| Other cash paid concerning investing activities | 55,481,620.00 | 9,740,000.00 |
| Subtotal of cash outflow from investing activities | 540,217,106.93 | 1,104,677,488.72 |
| Net cash flows arising from investing activities | 99,854,627.00 | -560,211,801.55 |
| III. Cash flows arising from financing activities | ||
| Cash received from absorbing investment | ||
| Cash received from loans | 289,000,000.00 | 426,678,000.00 |
| Cash received from issuing bonds | ||
| Other cash received concerning financing activities | 31,346,756.76 | 15,281,801.00 |
| Subtotal of cash inflow from financing activities | 320,346,756.76 | 441,959,801.00 |
| Cash paid for settling debts | 655,000,000.00 | 300,000,000.00 |
| Cash paid for dividend and profit distributing or interest paying | 32,672,266.77 | 13,430,070.19 |
| Other cash paid concerning financing activities | 114,243,780.75 | 72,182,236.15 |
| Subtotal of cash outflow from financing activities | 801,916,047.52 | 385,612,306.34 |
| Net cash flows arising from financing activities | -481,569,290.76 | 56,347,494.66 |
| IV. Influence on cash and cash equivalents due to fluctuation in exchange rate | -4,061,294.11 | -6,743,197.91 |
| V. Net increase of cash and cash equivalents | -1,032,822,012.54 | -684,816,954.66 |
| Add: Balance of cash and cash equivalents at the period -begin | 2,894,384,811.05 | 3,410,029,424.54 |
| VI. Balance of cash and cash equivalents at the period -end | 1,861,562,798.51 | 2,725,212,469.88 |
Legal Representative: Li WeiPerson in charge of accounting works: Pang HaitaoPerson in charge of accounting institute: Luo Bo
II. Explanation on financial statement adjustment
1. Financial statement adjustment at the beginning of the first year when implementation of new financialinstrument rules, new revenue rules and new leasing rules√ Applicable □Not applicable(1) Consolidate balance sheet
In RMB
| Items | 2018-12-31 | 2019-1-1 | Adjustment |
| Current assets: | |||
| Monetary fund | 4,596,077,557.40 | 4,596,077,557.40 | |
| Transactional financial assets | Not applicable | 9,253,635.59 | 9,253,635.59 |
| Financial assets measured by fair value and with variation reckoned into current gains/losses | 9,253,635.59 | Not applicable | -9,253,635.59 |
| Note receivable and account receivable | 4,058,819,532.50 | 4,043,930,389.93 | -14,889,142.57 |
| Including: Notes receivable | 2,387,830,887.74 | 2,370,568,253.64 | -17,262,634.10 |
| Accounts receivable | 1,670,988,644.76 | 1,673,362,136.29 | 2,373,491.53 |
| Account paid in advance | 86,180,459.26 | 86,180,459.26 | 0.00 |
| Other account receivable | 62,129,574.17 | 63,192,740.93 | 1,063,166.76 |
| Including: Interest receivable | 2,653,712.36 | 2,653,712.36 | |
| Inventories | 2,174,436,573.67 | 2,174,436,573.67 | |
| Other current assets | 1,184,686,956.96 | 1,184,686,956.96 | |
| Total current assets | 12,171,584,289.55 | 12,157,758,313.74 | -13,825,975.81 |
| Non-current assets: | |||
| Available-for-sale financial assets | 45,000,000.00 | Not applicable | -45,000,000.00 |
| Long-term equity investments | 61,869,440.55 | 61,869,440.55 | |
| Other non-current financial assets | Not applicable | 45,000,000.00 | 45,000,000.00 |
| Investment real estate | 46,846,507.41 | 46,846,507.41 | |
| Fixed assets | 1,733,957,012.14 | 1,733,957,012.14 | |
| Construction in progress | 464,558,352.60 | 464,558,352.60 |
| Intangible assets | 817,579,958.94 | 817,579,958.94 | |
| Research and development costs | 108,210,966.60 | 108,210,966.60 | |
| Deferred income tax assets | 112,203,656.75 | 112,203,656.75 | |
| Total non-current assets | 3,390,225,894.99 | 3,390,225,894.99 | |
| Total assets | 15,561,810,184.54 | 15,547,984,208.73 | -13,825,975.81 |
| Current liabilities | |||
| Short-term borrowings | 2,336,373,929.62 | 2,336,373,929.62 | |
| Transactional financial liability | Not applicable | 55,586,666.70 | 55,586,666.70 |
| Financial liability measured by fair value and with variation reckoned into current gains/losses | 55,586,666.70 | Not applicable | -55,586,666.70 |
| Notes payable & account payable | 6,009,929,380.98 | 6,009,929,380.98 | |
| Accounts received in advance | 354,551,354.80 | 354,551,354.80 | |
| Wage payable | 163,638,627.79 | 163,638,627.79 | |
| Taxes payable | 109,753,432.17 | 109,753,432.17 | |
| Other accounts payable | 660,320,360.26 | 660,320,360.26 | |
| Including: Interest payable | 7,519,756.26 | 7,519,756.26 | |
| Dividend payable | 17,317,286.45 | 17,317,286.45 | |
| Non-current liabilities due within one year | 273,682,737.85 | 273,682,737.85 | |
| Total current liabilities | 9,963,836,490.17 | 9,963,836,490.17 | |
| Non-current liabilities: | |||
| Long-term loans | 1,920,000.00 | 1,920,000.00 | |
| Long-term account payable | 5,017,208.00 | 5,017,208.00 | |
| Projected liabilities | 273,063,677.21 | 273,063,677.21 | |
| Deferred income | 160,250,963.60 | 160,250,963.60 | |
| Deferred income tax liabilities | 3,098,699.11 | 3,098,699.11 | |
| Other non-current liabilities | 19,073,101.29 | 19,073,101.29 | |
| Total non-current liabilities | 462,423,649.21 | 462,423,649.21 | |
| Total liabilities | 10,426,260,139.38 | 10,426,260,139.38 | |
| Owners’ equity: | |||
| Share capital | 1,044,597,881.00 | 1,044,597,881.00 | |
| Capital public reserve | 2,684,369,598.46 | 2,684,369,598.46 | |
| Other comprehensive income | -18,143,569.26 | -18,143,569.26 | |
| Surplus public reserve | 400,673,993.50 | 399,082,433.26 | -1,591,560.24 |
| Retained profit | 904,232,582.87 | 896,383,462.85 | -7,849,120.02 |
| Total owner’s equity attributable to parent company | 5,015,730,486.57 | 5,006,289,806.31 | -9,440,680.26 |
| Minority interests | 119,819,558.59 | 115,434,263.04 | -4,385,295.55 |
| Total owner’s equity | 5,135,550,045.16 | 5,121,724,069.35 | -13,825,975.81 |
| Total liabilities and owner’s equity | 15,561,810,184.54 | 15,547,984,208.73 | -13,825,975.81 |
Statement of adjustmentThe Company implemented the new financial instrument rules since 1 Jan. 2019, the “Financial assetsmeasured by fair value and with its variation reckoned into current gain/loss” adjusted to “Transactional financialassets”, the “Financial assets available-for-sale” adjusted to “Other non-current financial assets”, the “Financialliability measured by fair value and with its variation reckoned into current gain/loss” adjusted to “Transactionalfinancial liability”
In addition, according to the connection rules of the new financial instrument standards, the company doesnot need to restate the previous comparables, and it’s unnecessary to adjust when the information presented in thefinancial statements is not inconsistent with the requirements of the new standards. The difference between theoriginal book value of financial instrument and the new book value before the date of implementation of thestandards is adjusted and included in the retained earnings at the beginning of the period of 2019.(2) Balance Sheet of Parent Company
In RMB
| Item | 2018-12-31 | 2019-1-1 | Adjustment |
| Current assets: | |||
| Monetary fund | 2,897,004,041.87 | 2,897,004,041.87 | |
| Transactional financial assets | Not applicable | 9,253,635.59 | 9,253,635.59 |
| Financial assets measured by fair value and with variation reckoned into current gains/losses | 9,253,635.59 | Not applicable | -9,253,635.59 |
| Note receivable and account receivable | 3,483,525,970.01 | 3,467,513,069.95 | -16,012,900.06 |
| Including: Notes receivable | 2,433,243,946.64 | 2,419,743,946.64 | -13,500,000.00 |
| Accounts receivable | 1,050,282,023.37 | 1,047,769,123.31 | -2,512,900.06 |
| Account paid in advance | 58,710,427.38 | 58,710,427.38 | 0.00 |
| Other account receivable | 182,744,033.52 | 182,841,331.20 | 97,297.68 |
| Including: Interest receivable | 2,653,712.36 | 2,653,712.36 | |
| Inventories | 911,130,106.30 | 911,130,106.30 | |
| Other current assets | 1,113,987,528.70 | 1,113,987,528.70 | |
| Total current assets | 8,656,355,743.37 | 8,640,440,140.99 | -15,915,602.38 |
| Non-current assets: | |||
| Available-for-sale financial assets | 45,000,000.00 | Not applicable | -45,000,000.00 |
| Long-term equity investments | 1,731,109,903.70 | 1,731,109,903.70 | |
| Other non-current financial assets | Not applicable | 45,000,000.00 | 45,000,000.00 |
| Investment real estate | 7,618,550.16 | 7,618,550.16 | |
| Fixed assets | 1,082,915,540.08 | 1,082,915,540.08 | |
| Construction in progress | 125,064,106.10 | 125,064,106.10 | |
| Intangible assets | 462,425,105.64 | 462,425,105.64 | |
| Research and development costs | 57,383,653.72 | 57,383,653.72 | |
| Deferred income tax assets | 78,357,299.17 | 78,357,299.17 | |
| Total non-current assets | 3,589,874,158.57 | 3,589,874,158.57 | |
| Total assets | 12,246,229,901.94 | 12,230,314,299.56 | -15,915,602.38 |
| Current liabilities | |||
| Short-term borrowings | 1,911,719,726.13 | 1,911,719,726.13 | |
| Transactional financial liability | Not applicable | 19,893,875.00 | 19,893,875.00 |
| Financial liability measured by fair value and with variation reckoned into current gains/losses | 19,893,875.00 | Not applicable | -19,893,875.00 |
| Notes payable & account payable | 4,013,263,630.45 | 4,013,263,630.45 | |
| Accounts received in advance | 105,815,140.88 | 105,815,140.88 | |
| Wage payable | 31,271,182.48 | 31,271,182.48 | |
| Taxes payable | 21,992,129.58 | 21,992,129.58 | |
| Other accounts payable | 427,293,961.56 | 427,293,961.56 | |
| Including: Interest payable | 5,801,215.14 | 5,801,215.14 | |
| Dividend payable | 17,317,286.45 | 17,317,286.45 | |
| Non-current liabilities due within one year | 258,588,504.48 | 258,588,504.48 | |
| Total current liabilities | 6,789,838,150.56 | 6,789,838,150.56 | |
| Non-current liabilities: | |||
| Long-term loans | 1,920,000.00 | 1,920,000.00 | |
| Accrued liabilities | 266,641,323.73 | 266,641,323.73 | |
| Deferred income | 53,118,676.50 | 53,118,676.50 | |
| Other non-current liabilities | 19,073,101.29 | 19,073,101.29 | |
| Total non-current liabilities | 340,753,101.52 | 340,753,101.52 | |
| Total liabilities | 7,130,591,252.08 | 7,130,591,252.08 | |
| Owners’ equity: | |||
| Share capital | 1,044,597,881.00 | 1,044,597,881.00 |
| Capital public reserve | 2,753,017,007.10 | 2,753,017,007.10 | |
| Surplus reserve | 400,455,827.82 | 398,864,267.58 | -1,591,560.24 |
| Retained profit | 917,567,933.94 | 903,243,891.80 | -14,324,042.14 |
| Total owner’s equity | 5,115,638,649.86 | 5,099,723,047.48 | -15,915,602.38 |
| Total liabilities and owner’s equity | 12,246,229,901.94 | 12,230,314,299.56 | -15,915,602.38 |
Statement of adjustmentThe Company implemented the new financial instrument rules since 1 Jan. 2019, the “Financial assetsmeasured by fair value and with its variation reckoned into current gain/loss” adjusted to “Transactional financialassets”, the “Financial assets available-for-sale” adjusted to “Other non-current financial assets”, the “Financialliability measured by fair value and with its variation reckoned into current gain/loss” adjusted to “Transactionalfinancial liability”
In addition, according to the connection rules of the new financial instrument standards, the company doesnot need to restate the previous comparables, and it’s unnecessary to adjust when the information presented in thefinancial statements is not inconsistent with the requirements of the new standards. The difference between theoriginal book value of financial instrument and the new book value before the date of implementation of thestandards is adjusted and included in the retained earnings at the beginning of the period of 2019.2. Retrospective adjustment of the comparative data for initial implementation of new financial instrumentrules and new leasing rules
□Applicable √Not applicable
III. Audit report
Whether the 1st quarterly report has been audited or not
□Yes √ No
The 1st quarterly report of the Company has not been audited.
Changhong Meiling Co., Ltd.
Chairman: Li Wei
20 April 2019