虹美菱B：2019年第三季度报告全文（英文版）

CHANGHONG MEILING CO., LTD.

THE THIRD QUARTERLY REPORT FOR 2019

October 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 hereby confirm that there are no anyfictitious statements, misleading statements, or important omissions carried in this report, and shall take allresponsibilities, individual and/or joint, for the reality, accuracy and completion of the whole contents.Principal of the Company Mr. Wu Dinggang, Person in Charge of Accounting Works Mr. Pang Haitao andPerson in Charge of Accounting Organ (Accounting Officer) Mr. Yang Jun hereby confirm that the FinancialReport of the Third Quarterly Report is authentic, accurate and complete.Prompt of non-standard audit opinion

□ Applicable √ Not applicable

Third quarterly report of 2019 has not been audited.

All directors of the Company are attended the Meeting for quarterly report deliberation.

Section II Basic information of Company

I. Main accounting data and indexWhether it has retroactive adjustment or re-statement on previous accounting data or not

□Yes √No

End of this period End of last period

Changes of this period-endover same period-end of last

yearTotal assets(RMB) 14,817,745,280.38

15,561,810,184.54

-4.78%

Net assets attributable toshareholders of listed company(RMB)

5,028,249,585.27

5,015,730,486.57

0.25%

Current period

Increase/decrease incomparison with sameperiod of last year

Year-begin to end of

the Period

Increase/decrease incomparison withyear-begin toPeriod-

end of last year

Operating revenue (RMB) 3,907,875,881.65

-1.74%

13,041,038,562.59

-1.57%

Net profit attributable toshareholders of the listed company(RMB)

26,417,996.84

76.66%

80,752,019.41

23.03%

Net profit attributable toshareholders of the listed companyafter deducting non-

and losses(RMB)

8,955,796.33

recurring gains

274.85%

13,431,193.18

214.58%

Net cash flow arising fromoperating activities(RMB)

-- -- 201,226,091.90

-

Basic earnings per share(RMB/Share)

0.0253

		16.58%

76.66%

0.0773

23.03%

Diluted earnings per share(RMB/Share)

0.0253

76.66%

0.0773

23.03%

Weighted average ROE 0.53%

0.23

percentage points

up

1.60%

0.30

percentage points

up

Items and amount of extraordinary profit (gains)/losses

√Applicable □Not applicable

In RMB

Amount from year-begin to

Item

Note

Gains/losses from the disposal of non-current asset (including thewrite-off that accrued for impairment of assets)

-4,436,536.97

end of the Period

Found more in “Income from assetsdisposal”Governmental subsidy reckoned into current gains/losses (notincluding the subsidy enjoyed in quota or ration according tonational standards, which are closely relevant to enterprise’sbusiness)

77,124,210.10

Found more in “Other income” and“Non-operation income”Except for the effective hedging business relevant with normaloperations of the Company, gains/losses from change of the fairvalue for holding the trading financial assets, derivative financialassets, trading financial liabilities and derivative financialliability, as well as the investment income from disposing thetrading financial assets, derivative financial assets, tradingfinancial liabilities, derivative financial liability and othercreditors’ investment

4,464,614.42

Found more in “Gain/loss of changesin fair value”, “investment income”

Switch-back of the receivables for separate impairment tests andprovision for impairment of contract assets

662,652.68

--Other non-operation income and expenditure except for theaforementioned items

1,763,043.66

Found more in “non-

and expenditure”Less: impact on income tax 11,543,274.56

	operation income

-- Impact on minority shareholders’ equity (post-tax) 713,883.10

--Total 67,320,826.23

--

Concerning the extraordinary profit (gain)/loss defined by Q&A Announcement No.1 on Information Disclosurefor Companies Offering Their Securities to the Public --- Extraordinary Profit/loss, and the items defined asrecurring profit (gain)/loss according to the lists of extraordinary profit (gain)/loss in Q&A Announcement No.1 onInformation 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 to thePublic --- Extraordinary Profit/loss, in the periodII. Total number of shareholders at the end of this report period and top ten shareholders

1. Number of common shareholders and preference shareholders with voting rights recovered and top ten

common shareholders

In shares

Total number of common shareholdersat the end of report period

64,377

Total preference shareholders

with voting rights recovered at

end of reporting period (ifapplicable)

Top ten shareholdersShareholder’s name

Nature ofshareholder

Pro

portion

of sharesheld

Amount ofshares held

Amount ofrestricted sharesheld

Number of sharepledged/frozenState ofshare

AmountSichuan Changhong Electric Co., Ltd.

State-owned legalperson

23.79%

portion

248,457,724

69,877,638

- -Hefei Industrial Investment Holding(Group) Co., Ltd.

State-owned legalperson

4.58%

47,823,401

-

- -CHANGHONG (HK) TRADINGLIMITED

Foreign legal person

2.59%

27,077,797

-

- -CAO SHENGCHUN

Foreign naturalperson

1.41%

14,765,386

-

- -Caitong Fund- Ningbo Bank-HaitongXingtai (Anhui) Emerging IndustryInvestment Fund (Limited Partnership)

Domesticnon-state-ownedlegal person

1.03%

10,733,452

-

- -China Construction Bank -HuaxiaZhongzheng Sichuan SOE reform ETF

Domesticnon-state-ownedlegal person

0.67%

6,996,400

-

- -Phillip Securities (Hong Kong) Limited Foreign legal person

0.60%

6,296,913

-

- -Ma Guobin

Domestic naturalperson

0.56%

5,874,969

-

- -Zheng Huiru

Domestic naturalperson

0.45%

4,680,000

-

- -China Securities Finance CorporationLimited

Domestic generallegal person

0.42%

4,362,500

-

- -Particular about top ten shareholders with un-restrict shares heldShareholders’ name

Amount of unrestricted shares

held

Type of sharesType AmountSichuan 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 (HK) TRADINGLIMITED

27,077,797

Domestically listed foreign shares

27,077,797

CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)CAO SHENGCHUN 14,765,386

Domestically listed foreign shares

14,765,386

Caitong Fund- Ningbo Bank-HaitongXingtai (Anhui) Emerging IndustryInvestment Fund (Limited Partnership)

10,733,452

RMB ordinary shares

10,733,452

China Construction Bank -HuaxiaZhongzheng Sichuan SOE reform ETF

6,996,400

RMB ordinary shares

6,996,400

Phillip Securities (Hong Kong) Limited 6,296,913

Domestically listed foreign shares

6,296,913

Ma Guobin 5,874,969

RMB ordinary shares

5,874,969

Zheng Huiru 4,680,000

RMB ordinary shares

4,680,000

China Securities Finance CorporationLimited

4,362,500

RMB ordinary shares

4,362,500

Explanation on associated relationshipor consistent actors among the aforesaidshareholders

referred to as Hong Kong Changhong) is the wholly-

owned subsidiary of Sichuan Changhong Electric Co., Ltd. (hereinafter referred to as Sichuan Changhong); except the shares of the Company directly held by Hong Kong Changhong, 6,296,913 shares of

B-stock are also held through

Information Disclosur

e of Shareholder Equity Changes of Listed Companies among Sichuan Changhong, Hong Kong Changhong and other top 7 shareholders; “Caitong

Fund- Ningbo Bank-

(Limited Partnership) ” refers to the produc

ts 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 stipu

Information Disclosure of Changes in Shareholding of Listed Companies”.Explanation on top ten commonshareholders involving margin business(if applicable)

As of 30

th

September 2019, among the top 10 common share

lated in the “Administrative Measures on

holders, Ma Guobin holds 5,874,969 shares of the Company through customer credit trading secured account of Founder Securities Co., Ltd., and 0 shares hold through common securities account, thus

5,874,969 shares of the Company are held in totalWhether 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 the Companyhave no buy-back agreement dealing in reporting period.

2. Total shareholders with preferred stock held and shares held by top ten shareholders with preferred

stock held

□ Applicable √ Not applicable

Section III. Important events

I. Particular about major changes from items of main accounting statements and financialindexes as well as reasons

√ Applicable □Not applicable

(i) Changes of items of balance sheet and cause analysis

In RMBItem Closing balance Opening balance

Changes ReasonsTradable financialassets

18,609,751.92 9,253,635.59 101.11%

Change of the fair value of forward foreignexchange contract in the periodAccountreceivable

2,206,388,200.30 1,673,362,136.29 31.85%

The account receivable from subsidiaryChanghong Air-conditioner and ZhongshanChanghong increased in the periodAccount paid in

advance

55,225,984.20 86,180,459.26 -35.92%

The account of equipment relocation are paid inadvance from subsidiary ChanghongAir-conditioner in the periodOther accountreceivable

130,723,288.12 63,192,740.93 106.86%

Cash deposit for the engineering projects are paidin the periodInvestment realestate

97,231,072.87 46,846,507.41 107.55%

The investment real estate from subsidiaryChanghong Air-conditioner increased in the period

Tradable financialliability

18,131,337.32 55,586,666.70 -67.38%

Change of the fair value of forward foreignexchange contract in the periodAccount received

in advance

240,271,809.66 354,551,354.80 -32.23%

The account received in advance from subsidiaryMeiling Group declined in the periodTaxes Payable 65,314,443.39 109,753,432.17 -40.49%

VAT are paid by subsidiary ChanghongAir-conditioner and Meiling Group in the periodNon-currentliability duewithin one year

300,000.00 273,682,737.85 -99.89%

The long-term loans due within one year are paidby parent company in the periodLong-term loans 301,280,000.00 1,920,000.00 15,591.67%

The long-term loans from parent companyincreased in the periodDeferred income

tax liability

5,996,351.53 3,098,699.11 93.51%

The deferred income tax liability recognize bysubsidiary Changhong Air-conditioner increased inthe period

(ii) Changes of items of profit statement and cause analysis

In RMBItemCurrent Period

Same period of

last year

Changes ReasonsFinancial expenses -9,844,161.99 -33,207,231.05 70.36%

The exchange loss increased on a y-o-y basis inthe period

CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)Income from fairvalue changes

43,185,470.53 -25,833,772.85 267.17%

Change of the fair value of forward foreignexchange contract in the periodInvestment income -38,327,115.65 20,726,039.38 -284.92%

The loss of forward exchange contract deliveryincreased from a year earlierIncome from theinvestment forassociated enterpriseand joint venture

1,251,855.70 -12,056,138.08 110.38%

The income from investment for associatedenterprise increased on a y-o-y basis in the periodCredit impairmentloss

1,082,468.11 - -

The financial assets impairment are listed underthe item of “Credit impairment loss” for change ofthe accounting policy in the periodIncome from assetsdisposal

-4,436,536.97 3,476,687.51 -227.61% Losses of the assets disposal in the periodNon-operationexpenditure

3,776,106.23 60,249.87 6,167.41%

Relocation expenditure from subsidiaryChanghong Air-conditioner increased from a yearearlierIncome tax expenses

36,397,055.33 25,015,797.92 45.50%

Income tax expenses increased on a y-o-y basis inthe periodGains/losses ofminorityshareholders

-11,984,976.39 196,132.62 -6,210.65%

Mainly due to the year-on-year increase in lossesof some non-wholly-owned subsidiaries of thecompany.

(iii) Changes of items of cash flow statement and cause analysis

In RMBItem Current Period

Same period oflast year

Changes ReasonsRefunds of taxes 280,384,080.90 455,080,647.00 -38.39%

The export rebates received in the perioddeclined on a y-o-y basisOther cash receivedconcerning operatingactivities

125,280,221.18 234,806,474.37 -46.65%

The reversal of the restricted money declined inthe periodTaxes paid 448,423,347.16 297,025,746.90 50.97% VAT paying increased on a y-o-y basisCash paid forpurchasing fixedassets, intangibleassets and otherlong-term assets

266,302,834.52 436,847,276.96 -39.04%

Fixed assets purchased in the period declined ona y-o-y basisCash paid forinvestment

1,981,000,000.00 3,020,000,001.00 -34.40%

The entrusted financial principal paid in theperiod declined on a y-o-y basisOther cash paidconcerning investmentactivities

76,709,995.61 255,500.00 29,923.48%

The loss of forward exchange contract deliveryincreased from a year earlierCash received forabsorbing investment

- 24,865,000.00 -100.00%

Investment from minority shares are received atsame period last year while no such amount

occurred in the periodCash received byborrowing

1,308,256,908.10 2,021,566,261.86 -35.28%

Borrowings received in the period declined on a

y-o-y basisOther cash paidconcerning financingactivities

32,764,857.16 2,050,458.19 1,497.93%

The restriction for utilization of the financing

guarantee increased on a y-o-y basisInfluence on cash andcash equivalents dueto fluctuation inexchange rate

12,976,331.25 3,791,101.79 242.28%

Changes in foreign currency exchange rate in the

periodII. Analysis and explanation of significant events and their influence and solutions

√ Applicable □Not applicable

(i) Particular about the process of the fund raised and investment of fund raisedIn 2016, the Company carried out private placement of A-share with 1,569,999,998.84 Yuan raise in total. Netamount raise as 1,540,732,722.76 Yuan after vary issuance costs (tax included) 29,267,276.08 Yuan deducted.As approved at the 16

th

session of the 9

th

BOD, the 8

th

session of 9

th supervisory committee and the 3

rd

extraordinary meeting of the shareholder general meeting for 2018, being agreed by independent directors as wellas the no objection verification opinion required from sponsor institution, the Company was approved to invest insuch break-even financing products that are highly safe, in good liquidity and with a term of not more than oneyear for a single product with the available raised proceeds under the maximum limit of 940 million Yuan. Thisauthorization shall be effective for a year since being approved at the general meeting of the Company.

The resolutions of the 20

th session of 9

th Board of Directors, the 11

th session of 9

thSupervisory Committee, and the2018 Annual General Meeting of Shareholders passed and agreed the company to postpone the date of reachingthe expected usable status of the “Intelligent Manufacturing Construction Project” and the "Intelligent R&DCapacity Building and Smart Appliance Technology New Product Development Project" in the 2016 non-publicoffering to raise funds for investment projects to the end of December 2021.

The resolutions of the 24

th session of 9

th

Board of Directors, the 13

th session of the 9

thSupervisory Committee,andthe 2

nd

Extraordinary General Meeting of 2019 passed and agreed the company to invest 120 million Yuan of theunused raised funds of the sub-project “intelligent production line construction project for newly increasing600,000 medium- and large-volume environmental protection and energy-saving freezer per year” of the“Intelligent Manufacturing Construction Project”, which was the 2016 non-public offering to raise funds forinvestment projects, into the “production base project (Phase II) for annual production capacity of 2 millionwashing machines”, and agreed the company to terminate the implementation of the “Smart Life Project” and usethe project's remaining raised funds and the interest and other proceeds from wealth management to permanentlyreplenish the working capital. Up to now, the Company are strictly comply with the resolution of the shareholdergeneral meeting and relevant regulations in using the fund raised.

Ended as 30 September 2019, actually fund of raised used accumulative amounted as 1,107,781,648.76 Yuan intotal, balance of the account for fund raised counted as 544,831,331.56 Yuan (including interest income

accumulative amounted as 7,679,296.60 Yuan and income from financial product at expiration 73,238,685.81Yuan, and the bank financial products of 517,000,000.00 Yuan purchased by the idle fund of raised)

Up to 30

thSeptember 2019, the Company accumulative used the fund raised in specific account amounted as1,107,781,648.76 Yuan, the use of purpose including:

1. The intelligent construction (Hefei) has 133,425,464.48 Yuan in used;

2. The production base project (Phase II) for annual production capacity of 2 million washing machines have

1,761,561.00 Yuan paid actually with the self-owned funds, but not transfer out from the specific account of fundraised, thus the fund raised for the project in specific fund raised account amounted as 0 Yuan.

3. Intelligent R & D capacity building and intelligent home appliances technology development project invested

352,661,186.36 Yuan accumulated;

4. The intelligent life project have 350,814,934.15 Yuan fund raised used in total (including the permanent

replenishment of working capital) (financial income 27,146,472.44 Yuan and interest income 3,668,461.71 Yuanincluded), at the same time, on 26 July 2019 and 19 August, the rest fund raised and interest income of305,813,334.15 Yuan in account for “ intelligent life project” have been withdrawal for supplementing theworking capital permanently. On 11 October 2019, the rest interest income of 29,712.17 Yuan in specific accountof the project have withdrawal by the Company and the account has been closed. Furthermore, the project’scarrier for implementation - Changmei Technology Co., Ltd. has in the progress of liquidation.

5. Supplementation of the working capital amounted as 270,880,063.77 Yuan (including saving interest

147,341.01 Yuan)(ii) Progress of shares buy-back

□ Applicable √ Not applicable

(iii) Implementation progress of the reduction of repurchases shares by centralized bidding

□ Applicable √ Not applicable

(IV) progress of the annual performance incentive fundThe “Implementation Plan of Annual Performance Incentive Fund” has been deliberated and approved by the

th session of 7

th Board and 2

nd

extraordinary general meeting 2012 on 9 August 2012 and 28 August 2012.Details of the aforesaid event can be found in the announcement (No.: 2012-028 and No.: 2012-035) released onappointed media Securities Times, China Securities Journal, Hong Kong Commercial Daily and Juchao Website(www.cninfo.com.cn) dated 10 August 2012 and 29 August 2012.

1. Implementation about 2012, 2013, 2014 and 2016 performance incentive fund provision and distribution

plan

See details in "Implementation of the company's annual incentive fund" in "XI Implementation of the company's

CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)stock incentive plan, employee stock ownership plan, or other employee incentive measures" in "Section VSignificant Events" of the company's "2018 Annual Report" disclosed on March 29, 2019.

Up to the end of this reporting period, the company's stock purchased by some annual performance incentiveobjects (non-directors, supervisors and senior management) for year of 2012, 2013 and 2014 with their grantedincentive funds and self-own funds have been fully open for trading; the company's stock purchased by some2016 annual performance incentive objects (non-directors, supervisors and senior management) with their granted2016 incentive funds and self-own funds has been desterilized by 50% for term of holding for two years; seebelow for the overall reducing holding-shares of some above-mentioned incentive objects. During the reportingperiod, among the incentive objects, the incumbent director and deputy president Mr. Zhong Ming reducing78,725 shares ( takes 0.0075% of the total shares of the Company) on 22 August 2019 via centralized biddingsystem in Shenzhen Stock Exchange; other incumbent directors, supervisors and senior managements in incentiveobjects are not reducing the shares for implementing the performance incentive plan of 2012, 2013, 2014 and2016.

2. Share holding and reduction of the company’s performance incentive objects

As of September 30, 2019, all incentive objects held a total of 11,323,917 shares, accounting for 1.0841% of thecompany’s general capital, of which 9,634,024 shares of A share, accounting for approximately 0.9223% of thecompany’s general capital, 1,689,893 shares of B share, and accounting for about 0.1618% of the company’sgeneral capital. Some 2012, 2013, 2014 and 2016 annual performance incentive objects (not directors, supervisorsor senior management) have totally reduced share of 5,189,898 shares from September 2014 to the end of the thisreporting period, accounting for approximately 0.4968% of the company’s general capital, and reduced holding of352,563 shares from July to September 2019.

(V) Transaction with Sichuan Changhong Group Finance Co., Ltd.The resolution of the 34

th session of 8

th

board of directors on August 9, 2017 and the second extraordinary generalmeeting of 2017 on September 12, 2017 approved and agreed the company to continue carry out the financialservice cooperation with Sichuan Changhong Group Finance Co., Ltd. (hereinafter referred to as “ChanghongFinance Company”) and sign a triennial Financial Service Agreement, It is agreed that the maximum depositbalance (including accrued interest and handling fees) and the highest principal and interest of outstanding loanthe Company in any finance company within the three-year validity period from the effective date of the newagreement shall be adjusted to not exceed RMB 3.8 billion per day. In accordance with the agreement, ChanghongFinance Company shall provide a series of financial services such as deposit and loan in its business scopeaccording to the requirements of the Company and its subsidiaries.

On 10 December 2018 and 27 December 2018, deliberated and approved by the 17

th session of 9

th BOD and 4

th

Extraordinary shareholders general meeting of 2018, the related transactions of financial service with ChanghongFinance between the Company and controlling subsidiary for year of 2019 including: the maximum balance inChanghong Finance Company (including accrual interest and handling charges) will not be over 3.8 billion Yuaneveryday, the maximum outstanding loan principal and interest shall not exceed 3.8 billion Yuan; the line of creditto the Company and subordinate subsidiary from Changhong Finance will not exceed 6 billion Yuan; the upperlimit of notes for business shall not exceed 3 billion Yuan and the upper limit of bill discount business shall not

CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)exceed 3 billion Yuan. The related transaction with Changhong Finance Company from beginning of the year toend of the period including:

Up to 30 September 2019, the Company and its subsidiaries have opened financial business as savings, notedrawing and notes discounted with Changhong Finance Company. The Company and its subordinate companyowns 2,580,645,538.16 Yuan savings in Changhong Finance Company, takes 23.16% of the deposit taking balancein Changhong Finance Company without 30% occupied, balance of notes drawing at period-end was1,129,785,016.07 Yuan and balance of notes discounted outstanding as 749,980,883.61 Yuan. More details are:

CNY/ RMBItem Opening balance Current increased Current decreased Ending balance

Interest andhandling charge

received/paid

Changhong GroupFinance Company

3,119,117,207.91 25,096,857,470.56 25,635,329,140.31 2,580,645,538.16 77,721,913.52

I. Savings in

II. Borrowings from Changhong Group Finance

Company

1.Short-term loans

2.Long-term loans

III. Other

financial business

1.notes drawing

819,806,514.07 1,620,131,958.33 1,310,153,456.33 1,129,785,016.07 647,336.38

2.notes discounted

772,233,395.98 1,097,863,492.58 1,120,116,004.95 749,980,883.61 14,376,818.54(VI) Other significant events

Overview

Date fordisclosure

Information index for temporary report

disclosure

III. OtherMr. Wu Dinggang, the former president of the company, applied forresignation as the president of the company due to changes in his personal

work, but he continues to serve as the vice-

president of the company, a

member of the strateg

the remuneration and appraisal committee.

2019-1-12

Juchao Website: http://www.cninfo.com.cn(No.: 2019-001)

y committee of the board of directors, and a member of

After the resolution of the board of directors of the company, it’s agreed to

authorize Mr.

engages a new president.

2019-1-12

Juchao Website: http://www.cninfo.com.cn(No.: 2019-002)

Plan of Changhong Meiling Co., Ltd. from Caitong

Fund Management Co., Ltd. (hereinafter referred to as “Caitong Fund”) that held more than 5% of the company’s shares, Caitong Fund reduced its holdings of the company’s shares of 12,160,298 shares in total by centralized bidding transactions or block

tradi

of the company's total share capital.

2019-1-15

Juchao Website: http://www.cninfo.com.cn(No.: 2019-003)

The resolutions of Board of Directors, the Board of Supervisors and GeneralMeeting of passed and agreed the company to provide credit guarantees of

2.98 billion yuan in total for its wholly-owned and controlled subsidiaries in

2019, the guarantee period is one year for the newly increased guaranteeamount for the current year and the amount of renewal insurance during theyear.

2019-1-302019-2-142019-2-23

Juchao Website: http://www.cninfo.com.cn(No.: 2019-004, No.: 2019-005, No.:

2019-006, No.: 2019-008, No.: 2019-010 andNo.: 2019-012)The resolution of the Board of Directors of the Company passed and agreedthe company to apply for a special credit line of up to 300 million yuan in thebank notes pool to Hefei Branch of China Everbright Bank Co., Ltd.

2019-1-30

Juchao Website: http://www.cninfo.com.cn(No.: 2019-004, No.: 2019-007)On F

ng from October 18, 2018 to January 13, 2019, accounting for 1.1641%

ebruary 13, 2019, the company received the “Short Form Report onChanges in Equity of Changhong Meiling Co., Ltd.” from Caitong Fund,Caitong Fund and its subordinate assets management plan reduced its holdings

of the shares of Changhong Meiling of

2,600,729 shares in total by centralized bidding transactions from January 14, 2019 to February 12, 2019, totally 8,115,894.30 Yuan reduced, accounting for 0.25% of the company's total share

capital. After this equity change, Caitong Fund(presenting the as

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 receive

sets management plan on behalf) holds 52,229,844 shares of Changhong Meiling,

d the Notice of Sichuan Changhong Electric Co., Ltd. and its Concerted Action Person CHANGHONG (HK) TRADING LIMITED, Ltd. to Increase the Shareholding of Changhong Meiling Co., Ltd. and the Equity Changes

(hereinafter referred to as “Notice”). Sichuan Chan

Changhong Meiling A shares and 2,479,268 share

s of Changhong Meiling B shares) by bidding transaction method through the secondary market from November 12, 2018 to February 25, 2019, accounting for 1.55% of Changhong Meiling’s total share capital, consequently, the equity ratio of

Changhong

accumulatively increased by 5% from September 2009 to February 2019.

2019-2-262019-2-28

Juchao Website: http://www.cninfo.com.cn(No.: 2019-013)

In late March 2019, the Company received the "N

Meiling held by Sichuan Changhong and concerted action person

otice of Civil Penalty" issued by U.S Department of Energy ("DOE", i.e. the US Department of

2019-3-26

Juchao Website: http://www.cninfo.com.cn(No.: 2019-014)

CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)Energy).

Annual Ge

neral Meeting of Shareholders passed and agreed the company to change the corresponding accounting policies according to the relevant regulations and requirements of the Ministry of Finance so as to apply to the

new regulations.

2019-3-29、2019-4-272019-5-22

Juchao Website: http://www.cninfo.com.cn(No.: 2019-015, No.: 2019-018, No.:

2019-031 and No.: 2019-035)

Shareholders passed and agreed the company and its subsidiaries to car

ry out forward foreign exchange fund trading business from July 1, 2019 to June 30, 2020, the balance of the business transaction does not exceed US$650 million (mainly including US dollar, Australian dollar, Euro, and other foreign

exchanges are all conve

single-business delivery period is no more than one year.

2019-3-292019-4-272019-5-22

Juchao Website: http://www.cninfo.com.cn(No.: 2019-015, No.: 2019-020, No.:

2019-031 and No.: 2019-035)

In accordance with the

rted into US dollars), and the maximum

resolutions of the Board and the Annual General Meeting, it’s agreed to revise some of the provisions of the "Articles of Association", "Rules of Procedure of the General Meeting of Shareholders",

and “Rules of Procedure of the Board of Directors".

2019-3-292019-4-272019-5-22

Juchao Website: http://www.cninfo.com.cn(No.: 2019-015, No.: 2019-022, No.:

2019-031 and No.: 2019-035)

company's subsidiaries, Zhongshan Changhong Elect

ric Appliance Co., Ltd., Guangdong Changhong Technology Co., Ltd. and Hongyuan Geothermal Heat Pump Technology (Zhongshan) Co., Ltd. to donate a total of 130,000 yuan to Nantou Town People's Government of Zhongshan City to expand the Nantou

Town Central Primary School.

2019-3-29

Juchao Website: http://www.cninfo.com.cn(No.: 2019-015, No.: 2019-023)

Plan of Changhong Meiling Co., Ltd. from Caitong Fund.

Caitong Fund

reduced holding of 7,430,612

0.7113% of the total share capital of the Company. A

fter the reduction,

Caitong Fund

4.2887% of the company's total equity.

2019-4-16

Juchao Website: http://www.cninfo.com.cn(No.: 2019-024)

The resolutions of the Board of Directors passed and ag

still holds 44,799,232 shares of the company, accounting for

reed the company to implement the new financial instrument standards and change the relevant accounting policies in accordance with the relevant regulations and

requirements of the Ministry of Finance.

2019-4-20

Juchao Website: http://www.cninfo.com.cn(No.: 2019-025, No.: 2019-028)

set up a wholly-

owned subsidiary to engage in refrigeration engineering

equipment sales, design and other services.

2019-4-20

Juchao Website: http://www.cninfo.com.cn(No.: 2019-025)

withdraw some of the investment under the “Soochow-

China Merchants

Bank-

Donghui 135 Directional Asset Management Plan” issued by SoochowSecurities Co., Ltd. in advance, which was subscribed by the company at an

earlier stage, that is, withdraw the princip

yuan and the one-

year investment income corresponding to the asset management plan of about 16 million yuan (after deducting management fees,

custody fees and value-added tax) for the daily operation of the company.

2019-4-20

Juchao Website: http://www.cninfo.com.cn(No.: 2019-025)

member of the nomination committee of the

board of directors of the company

for work reasons.

chairman of the ninth board of directors for a term of office consis

tent with the

term of the current board of directors.

2019-4-27

Juchao Website: http://www.cninfo.com.cn(No.: 2019-029, No.: 2019-030)

Shareholders of the company passed and agreed the by-

election of Mr. Zhong

Ming as a non-

Directors.

2019-4-272019-5-22

Juchao Website: http://www.cninfo.com.cn(No.: 2019-030, No.: 2019-031 and No.:

2019-035)

independent director of the Ninth Board of Directors of the Company, and his term of office is the same as that of the Ninth Board of

Subordinate controlling subsidiary of the Company, have accumulated received various kinds of government subsidies as 72,467,598.96 Yuan from 1

Jan. 2019 to 13 August 2019.

2019-6-122019-8-13

Juchao Website: http://www.cninfo.com.cn(No.: 2019-036, No.: 2019-048)

1,044,597,881 shares on December 31, 2018 as th

e base, and distribute a cash dividend of 0.6 yuan (including tax) per every 10 shares to all shareholders, who distributed cash dividends of 62,675,872.86 yuan (including tax) in total,

the above mentioned profit distribution plan has been completed.

2019-3-292019-5-222019-6-18

Juchao Website: http://www.cninfo.com.cn(No.: 2019-015, No.: 2019-035 and No.:

2019-037)

from Mr. Zhong Ming, the company's director and vice president,

Mr. Zhong Ming planned to reduce his holdings of the Company’s shares of no more than 78,725 shares (not exceeding 0.0075% of the company's total share capital) by centralized bidding transactions of the stock exchanges within six months after

15 trading d

Mr. Zhong Ming. Up to 22 August 2019, Mr. Zhong M

ing reduced 78,725

shares via centralized bidding system in Shenzhen Stock Exchange.

2019-6-292019-8-24

Juchao Website: http://www.cninfo.com.cn(No.: 2019-039, No.: 2019-055)

12,60

4,521.25 Yuan that unable to collected by the Company and its

subsidiaries are being verified

2019-8-16

Juchao Website: http://www.cninfo.com.cn(No.: 2019-049, No.: 2019-052)

CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)In order to further utilize the mature intelligent trading platform of

Company’s and controlling share

holder Sichuan Changhong’s collaborative advantages in home appliance marketing, make it better to adapt to the market

competition and consumer behavior.

Board and shareholders general meeting, self-owned capital 29,0

87,040 Yuan of the Company (including: 20 million Yuan for registered capital and 9,087,040 Yuan reckoned into capital reserves) is agreed to increase the capital for Zhiyijia Company. After capital increased, the shareholding ratio by the

Company and Sich

controlling companies with Zhiyijia Company in aspect of g

ood sales and accepting services; it is estimated that the amount from related trading as good

sales and accepting services for year of 2020 was 8526 million Yuan in total.

2019-8-312019-9-62019-9-102019-9-27

(No.: 2019-057, No.: 2019-

058, No.:

2019-059 and No.: 2019-067)

its shareholders, through friendly consultation with the shareholder-

Italy Candy Hoover Group S.r.l., the subordinate controlling subsidiary Meiling

CANDY was agreed to be liquidated and canceled.

2019-8-31

(No.: 2019-057)Being approved by the resolution of the Boar

		Juchao Website: http://www.cninfo.com.cn
d and shareholders general meeting, it is agreed to increased the capital to Changhong Finance Company

with 500 million Yuan each with self-

Total

capital comes to 1000 million Yuan. Based on the capital increase has involvement in the assessment results of shareholders’ equity, among the 500 million Yuan, 402,998,300 Yuan will reckon into registered capital while

97,001,700 Yuan reckon into capital reserves.

2019-9-102019-9-27

(No.: 2019-060, No.: 2019-

061, No.:

2019-063 and No.: 2019-067)

Meiling agreed to implemented the initial of

fering of shares for year of 2019. The issuing target will subscribes in cash. It is agreed that the Company waives the rights of preferential subscription under the same conditions for the

issuance of shares.

2019-9-10

Juchao Website: http://www.cninfo.c

(No.: 2019-060, No.: 2019-062)

		om.cn
Being approved by resolution of the Board, it is agreed to withdrawal parts of

the investment pre-

issued by Soochow Securities in advance, that is, principal 50

million Yuan and investment income approximately as 1,501,300 Yuan for holding the principal (about more than 4 months) are collected in advance for routine

operation of the Company

2019-9-10

(No.: 2019-060)

III. Commitments that the company, shareholders, actual controller, offeror, directors,

CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)supervisors, senior management or other related parties have fulfilled during the reportingperiod and have not yet fulfilled by the end of reporting period

□ Applicable √ Not applicable

There are no commitments that the company, shareholders, actual controller, offeror, directors, supervisors, seniormanagement or other related parties have fulfilled during the reporting period and have not yet fulfilled by the endof reporting period.IV. Forecast of operation performance of 2019Estimation on accumulative net profit from the beginning of the year to the end of next report period to be lossprobably 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. Trust financing

√ Applicable □Not applicable

In 10 thousand YuanType Capital resources Amount for entrust Balance un-expired Overdue amountBank financing product

Idle raised funds 90,400

51,700

Own funds 30,000

30,000

Financial products of the

broker

Own funds 20,000

10,000

Total 140,400

91,700

Details of the single major amount, or high-risk trust investment with low security, poor fluidity andnon-guaranteed:

√ Applicable □Not applicable

In 10 thousand Yuan

Trusteeinstitution rname

Trustee

type

Type Amount

Sour

fund

sStartdate

End date

ce of

Capital investment purpose

Criteria

forfixingreward

Refere

nce

annual rate of

return

Anticipatedincome (ifapplicable)

Actualgains/losses in period

Actualcollectedgains/losses in period

Amount

ofreserve

fordevaluat

ion ofwithdra

wing

(ifapplicab

le)

Wheth

erapproved bylegalproced

ure(Y/N)

Whether

hasentrustfinanceplan inthefuture

Summary of the items

and related query index

(if applicable)

SOOCHOWSecuritiesCo., Ltd.

Broker

Assetsmanage

mentplan

20,000

5,000

Self-

funds2018-4

-12

own		Collected

in

advance	Investment for the second phase debt financing plan for year of

2018 that issued on CFAE

Holding Co., Ltd.

Expiryliquidation

8.28%

under the name of Jinshiqi International

3,345.61 1,756.64

1,756.64

N/A Y

Notapplicable

Juchao Website(www.cninfo.com.cn)(No.: 2018-014, No.:

2018-015 , No.:

2019-025 and No.:

2019-060)5,000

Collected

in

10,000

		advance

2021-4-1

ChengduBranch ofChina BohaiBank

Bank

income

type

48,000

Floating

Idle

fund

s2018-1

2-212019-6-1

raise

Structured deposit products, the structured derivatives link up with

3M Libor

4.20%

annualyield

4.20%

944.48

944.48

944.48

N/A Y

Notapplicable

Juchao Website

(www.cninfo.com.cn)

(No.: 2018-078)

Hefei Branch of SPD Bank

Bank

Break-e

ven &incomeprotectio

n

23,000

Idle

raise

fund

s

2018-1

2-26

2019-1-3

in bank market, treasury bond,corporate bonds, short-termfinancing, medium-term bills,inter-bank borrowing, inter-bank

3.95%

annual

yield

3.95%

Investment of the central bank bill

87.12

85.80

85.80

N/A Y

Notapplicable

Juchao Website

(www.cninfo.com.cn)

(No.: 2018-080)

etc.

		deposits, bills or bill repurchase
Hefei Branch

of CGB

Bank

incometype

10,000

Floating

Idle

fund

s

2018-12-272019-1-2

raise

The principal of funds raised by this structured deposit is included in the unified operations management of the funds of China

Guangfa Bank. The pro

inter-bank lending, buy-

back, etc.) ranges from 20% to 100%, and the proportion of bonds (including but not limited to national debt,

central bank bills, financi

short-

term financing bonds,

enterprise bonds, medium-

dollar against the

Hong Kong

dollar.

3.90%

annualyield

3.90%

34.19

34.19

34.19

N/A Y

Notapplicable

Juchao Website(www.cninfo.com.cn)(No.: 2018-080)

MianyangBranch ofChinaEverbrightBank

Bank

Break-e

ven &incomeprotectio

n

10,000

Idle

fund

s2018-1

2-28

2019-1-2

raise

The product is mainly composed

of risk-

3.75%

annualyield

3.75%

free assets investment and option trading. The product principal is invested in bank fixed time deposits, and the corresponding application of

31.85

31.25

31.25

N/A Y

Notapplicable

Juchao Website(www.cninfo.com.cn)(No.: 2018-081)

to the bank

’s comprehensive

liability cost.

AnhuiBranch ofBank ofCommunication Co., Ltd.

Bank

Floating

incometype

22,400

Idle

raise

funds2019-1

-312019-5-2

Takes the money collect by structured deposit sales as notional principal, and conducted investment income and financial derivatives with the benchmark comparison value of 3Mshibor linked with the counter party by

using the cost of above mention

principal

4.25%

annualyield

4.25%

ed

237.35

242.57

242.57

N/A Y

Notapplicable

Juchao Website(www.cninfo.com.cn)(No.: 2019-009)

Bank

Break-e

ven &incomeprotectio

n

10,000

Hefei Branch of SPD Bank

Idle

fund

s2019-1

-30

2019-5-2

raise

Investment of the central bank bill

in bank market, treasury bond,corporate bonds, short-termfinancing, medium-term bills,inter-bank borrowing, inter-bankdeposits, bills or bill repurchaseetc.

4.20%

annualyield

4.20%

105.86

110.83

110.83

N/A Y

Notapplicable

Juchao Website(www.cninfo.com.cn)(No.: 2019-009)

Hefei Branch

of CGB

Bank

income

type

10,000

Floating

Idle

fund

s2019-1

-30

2019-5-2

raise

The principal of funds raised by this structured deposit is included in the unified operations

management of the funds of

4.25%

annual

yield

4.25%

China Guangfa Bank. The proportion of investment in money market

107.12

107.12

107.12

N/A Y

Notapplicable

Juchao Website(www.cninfo.com.cn)(No.: 2019-009)

inter-bank lending, buy-

back, etc.) ranges from 20% to 100%, and the proportion of bonds (including but not limited to national debt, central bank bills, financial bonds,

short-

enterprise bonds, medium-

term notes, corporate bonds) and other financial assets ranges from 0% to 80%, and the income is invested in the financial derivatives linking

to the exchange rate of

dollar.AnhuiBranch ofBank ofCommunication Co., Ltd.

		the US dollar against the Hong Kong

Bank

income

type

17,000

Floating

Idlerais

fund

s

2019-5

-17

2019-7-1

Structured deposit products, the

e

structured derivatives link up with

3M Libor

4.10%

annualyield

4.10%

114.58

114.58

114.58

N/A Y

Notapplicable

Juchao Website(www.cninfo.com.cn)(No.: 2019-033)

ChengduBranch ofIndustrialBank Co.,Ltd.

Bank

Floating

income

type

20,000

Idle

raise

fund

s2019-5

-17

2019-8-1

The corporate financial structural

deposit under the Industrial Bank,

its annual fixed income rate is

2.01%, the floating earnings are

linked to the fluctuation of

Shanghai Jingshangwu

3.80%

annualyield

3.80%

195.73

195.73

195.73

N/A Y

Notapplicable

Juchao Website(www.cninfo.com.cn)(No.: 2019-034)

CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)benchmark price of the ShanghaiGold ExchangeChengduBranch ofChina BohaiBank

Bank

incometype

20,000

Floating

Idlerais

fund

s

2019-6-20

2019-7-2

e

Structured deposit products, the structured derivatives link up with

3M Libor

3.55%

annualyield

3.55%

62.25

62.25

62.25

N/A Y

Notapplicable

Juchao Website(www.cninfo.com.cn)(No.: 2019-038)ChengduBranch ofChina BohaiBank

Bank

Floating

incometype

26,000

Idle

raise

fund

s

2019-6

-20

2019-12-

3M Libor

3.85%

annualyield

3.85%

Structured deposit products, the structured derivatives link up with

496.38

-

-

N/A Y

Notapplicable

Juchao Website(www.cninfo.com.cn)(No.: 2019-038)Huining

of HefeiScience &TechnologyRuralCommercialBank Co.,Ltd.

Bank

Road Branch

Floating

income

type

5,000

Idle

raise

funds2019-7

-172019-9-1

Structured deposit products, the

futures: au1912

3.80%

annualyield

3.80%

contract code for investing in gold

32.27

32.27

32.27

N/A Y

Notapplicable

Juchao Website(www.cninfo.com.cn)(No.: 2019-046)

Hefei Branch

of ShanghaiPudongDevelopment Bank Co.,Ltd.

Bank

Floating

incometype

5,000

Idle

raise

funds2019-7

-182019-9-2

Structured deposit products,mainly invested in inter-bankcentral bills, treasury bonds,corporate bonds, short-termfinancing, medium-term bills,inter-bank lending, inter-bank

3.80%

annual

yield

3.80%

35.39

34.83

34.83

N/A Y

Notapplicable

Juchao Website(www.cninfo.com.cn)(No.: 2019-046)

CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)deposits, bonds or bill repurchaseetc., and option products withlinked interest rate.

of Hua XiaBank Co.,Ltd.

Bank

Hefei Branch

Floating

incometype

7,000

Idle

raise

fund

s

2019-7-192019-9-1

Structured deposit products, all orpart of the interest on deposits islinked to the gold futures price

3.90%

annualyield

3.90%

46.37

46.37

46.37

N/A Y

Notapplicable

Juchao Website(www.cninfo.com.cn)(No.: 2019-046)

ChengduBranch ofIndustrialBank Co.,Ltd.

Bank

Floating

income

type

8,700

Idle

raise

fund

s

2019-8

-23

2019-11-

Structured deposit products, thestructural deposit refers to abusiness products that enables the

on basis of assuming certain risksby linking with fluctuations ininterest rates, exchange rates,indices or with the credit situationof an entity.

3.80%

annualyield

3.80%

depositors to obtain higher returns

85.14

-

-

N/A Y

Notapplicable

Juchao Website(www.cninfo.com.cn)(No.: 2019-054)

ChengduWuyangDadaoBranch ofCITIC BankCo., Ltd.

Bank

income

type

30,000

Floating

Self-

fund

s

2019-8

-26

2019-11-

Structured deposit products,invest through structured interestrate swaps

3.90%

annualyield

3.90%

own

291.69

-

-

N/A Y

Notapplicable

Juchao Website(www.cninfo.com.cn)(No.: 2019-056)ChengduBank

12,000

Floating

Idle 2019-92019-12-

3.95%

3.95%

Structured deposit products, the

118.75

-

-

N/A Y

Not Juchao Website

CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)Branch ofChina BohaiBank

incometype

fund

s-23 23

raise

structured derivatives link up with

3M Libor

annualyield

applicable

(www.cninfo.com.cn)(No.: 2019-065)ChengduBranch ofChina BohaiBank

Bank

incometype

5,000

Floating

Idle

fund

s

2019-9

-26

2019-12-

raise

Structured deposit products, the structured derivatives link up with

3M Libor

3.95%

annualyield

3.95%

47.61

-

-

N/A Y

Notapplicable

Juchao Website(www.cninfo.com.cn)(No.: 2019-066)Total309,100

-- -- -- -- -- -- 6,419.74

3,798.91

-- --

-- -- --

Entrust financial expected to be unable to recover the principal or impairment might be occurred

□ Applicable √ Not applicable

VII. Particulars about derivatives investment

√ Applicable □Not applicable

In 10 thousand Yuan

Operator

Relatedrelationsh

ip

Whether

relatedtrade or

not

Type

Initial

Start date

investment

End date

Investmentamount atperiod-begin

Amountpurchasedduring thereporting

period

Amount sold

during thereporting

period

for devaluation ofwithdrawing (if

applicable)

Investmentamount atperiod-end

Ratio ofinvestmentamount atperiod-end innet assets of the

Company atperiod-end

Actualgains/losses

in period

Financialinstitutions

N/A No

Forwardforeignexchangecontract

200,656.30

		Amount of reserve

2017-9-29 2020-5-26 149,739.86

168,156.14

194,857.95

--

130,709.04

25.49%

-7,671.00

CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)Total 200,656.30

-- -- 149,739.86

168,156.14

194,857.95

--

130,709.04

25.49%

-7,671.00

Capital resource Self-owned capitalLawsuits (if applicable) Not applicableDisclosure date for approval from theBoard for investment of derivatives (ifapplicable)

2019-3-29Disclosure date for approval from boardof shareholders for investment ofderivatives (if applicable)

2019-5-22

Venture analysis and explanation oncontrol measures for derivatives holdingin Period (including but not limited tomarket risk, liquidity risk, credit risks,operational risk and legal risk etc.)

1. Market risk: the changes in domestic and foreign economic situation may create a major volatility in exchange rate, future exchange bus

certain market risks. Forward exchange transaction business of the Company aims at lock-up the price in sale and purcha

se of foreign exchange, and

lowers the impact on profit from exchange fluctuations. The Company will closely following the changes in exchange rate, base

by business, with the research and judgment in aspect of the trend in foreign

exchange rate, determine the signature planning of agreement for forward

exchange transaction combine with prediction on receipt and payment as well as the tolerance capacity of changing price arisi

implement dynamic management on the business to guarantee a reasonable profit standards for the Company.

2. Liquidity risk: all of the foreign exchange funds trading are depend on reasonably estimated of the import-

export business in future, satisfy the

requirement of trading truth. In

Company.

3. Bank default risk: if cooperative banks collapse within the contract time, the Company will not be able to transact the ori

ginal foreign exchange

contracts with contract price, which leads the risk of income uncertainty. So the Company chose the five major state-owned banks, joint –

funded banks as Everbright and Industrial Bank, as well as the foreign funded bank

s as UOB, Overseas Chinese Bank and Bank of East Asia to conduct

the trading of foreign exchange capital. These banks share a solid strength and management whose failure and the risk of loss

is very low.

4. Operational risk: the money trading in forward exchange might causes relevant risks due to the incorrect operations by handling personnel, relevant

management mechanism has formulated by the Company, well-defined the operation procedure and duty officer in favor of preventing r

control.

5. Legal risk: legal disputes may arise from the un-clear trading agreement signed between the Company and banks in aspect of money trading in

forward exchange. The Company strengthens the review on relevant contracts in way of law, and chooses banks for cooperation with good credit status

CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)in order to control the risk.Particular about the changes of marketprice or product’s fair value of investedderivatives in Period; as for analysis ofthe fair value of derivatives, disclosedspecific treatment methods and relevanthypothesis and parameter setting

In accordance with the Article 7 “Recognition of Fair Value” of “The Accounting Standards for Enterprises No. 22—Recognition and Measurement ofFinancial Instruments”, the Company determined and measure the fair value basically in line with the price provided or obtained from pricing servicessuch as banks. As for the calculation of fair value for derivatives, it mainly refers to the un-matured contract of forward exchange facilities that signedwith the banks in reporting period, and recognized as tradable financial assets or liabilities based on the difference of forward exchange facilities’contract quotation at period-end and forward rate. In the reporting period, the gains/losses of forward foreign exchange contract amounting to-7,671,000,000 Yuan

principle of accounting policy andaccounting calculation for derivatives inPeriod, by comparing with last period

Not applicable

Specific opinions from independentdirects on derivative investment and riskcontrolling

Upon inspection, the independent directors of the Company believes that: during the reporting period, the Company carried out

Explanation on major changes on specific
	its foreign exchange

forward deals in strict compliance

Exchange, the Articles of Association, Authorization Management of the Company, Management System in relating to Foreign Exchange Forward De

als

of Changhong Meiling Co., Ltd., and these deals were conducted within the authorization scope under general meeting and board meeting.

Company conducts no foreign exchange transactions on the purpose of getting profit only, all of the forward forei

gn exchange transactions are operates

based on normal operating and production, which is relying on specific business operations with purpose of avoiding the preve

exchange rate. The forward foreign exchange transactions of the Company are

beneficial to prevent the exchange risks exposed by import and export

business and thus met its requirement for operation development. There was no speculative operation, no break of relevant rul

relevant business was conducted under corresponding decision-

making procedures. Interests of the Company and entire shareholders, especially

minority shareholders, were not prejudiced.

CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)VIII. Registration form for receiving research, communication and interview in the reportperiod

√ Applicable □Not applicable

Time Way Type Basic situation index of investigation2019-2-26 Field research Institute

http://www.cninfo.com.cn/new/disclosure/stock?orgId=gssz0000521&stockCode=000521#2019-7-2 Field research Institute

http://www.cninfo.com.cn/new/disclosure/stock?orgId=gssz0000521&stockCode=000521#IX. Guarantee outside against the regulation

□Applicable √Not applicable

The Company had no guarantee outside against the regulation in the reporting period.X. Non-operational fund occupation from controlling shareholders and its related party

□ Applicable √ Not applicable

The Company had no non-operational fund occupation from controlling shareholders and its related party.

Section IV. Financial StatementI. Financial statement

1. Consolidate balance sheet

Prepared by Changhong Meiling Co., Ltd.

In RMBItem 2019-9-30 2018-12-31Current assets:

Monetary funds 4,075,740,120.45

4,596,077,557.40

Settlement provisions

Capital lent

Tradable financial assets 18,609,751.92

Financial assets measured by fair valueand with variation reckoned into currentgains/losses

9,253,635.59

Derivative financial assets

Note receivable 2,024,194,132.60

2,387,830,887.74

Account receivable 2,206,388,200.30

1,670,988,644.76

Receivable financing

Accounts paid in advance 55,225,984.20

86,180,459.26

Insurance receivable

Reinsurance receivables

Contract reserve of reinsurance receivable

Other account receivable 130,723,288.12

62,129,574.17

Including: Interest receivable 7,207,229.14

2,653,712.36

Dividend receivable

Buying back the sale of financial assets

Inventories 1,724,779,445.29

2,174,436,573.67

Contractual assets

Assets held for sale

Non-current asset due within one year

Other current assets 993,583,134.61

1,184,686,956.96

CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)Total current assets 11,229,244,057.49

12,171,584,289.55

Non-current assets:

Loans and payments on behalf

Debt investment

Finance asset available for sales

45,000,000.00

Other debt investment

Held-to-maturity investment

Long-term account receivable

Long-term equity investment 67,054,112.07

61,869,440.55

Investment in other equity instrument

Other non-current financial assets 45,000,000.00

Investment real estate 97,231,072.87

46,846,507.41

Fixed assets 2,030,130,808.74

1,733,957,012.14

Construction in progress 343,617,526.44

464,558,352.60

Productive biological asset

Oil and gas asset

Right-of-use assets

Intangible assets 829,624,319.88

817,579,958.94

Expense on Research and Development 82,477,256.77

108,210,966.60

Goodwill

Long-term expenses to be apportioned

Deferred income tax asset 93,366,126.12

112,203,656.75

Other non-current asset

Total non-current asset 3,588,501,222.89

3,390,225,894.99

Total assets 14,817,745,280.38

15,561,810,184.54

Current liabilities:

Short-term loans 1,684,437,250.66

2,336,373,929.62

Loan from central bank

Capital borrowed

Tradable financial liability 18,131,337.32

Financial liability measured by fair valueand with variation reckoned into currentgains/losses

55,586,666.70

Derivative financial liability

Note payable 3,739,952,714.58

3,727,754,399.60

CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)Account payable 2,297,568,758.71

2,282,174,981.38

Accounts received in advance 240,271,809.66

354,551,354.80

Contractual liability

Selling financial asset of repurchase

Absorbing deposit and inter-bank deposit

Security trading of agency

Security sales of agency

Wage payable 140,009,283.08

163,638,627.79

Taxes payable 65,314,443.39

109,753,432.17

Other account payable 788,933,166.42

660,320,360.26

Including: Interest payable 24,590,642.71

7,519,756.26

Dividend payable 3,579,491.94

17,317,286.45

Commission charge and commissionpayable

Reinsurance payable

Liability held for sale

Non-current liabilities due within one year 300,000.00

273,682,737.85

Other current liabilities

Total current liabilities 8,974,918,763.82

9,963,836,490.17

Non-current liabilities:

Insurance contract reserve

Long-term loans 301,280,000.00

1,920,000.00

Bonds payable

Including: Preferred stock

Perpetual capital securities

Lease liability

Long-term account payable 5,362,034.17

5,017,208.00

Long-term wages payable 14,353,019.26

19,073,101.29

Accrual liability 209,105,962.59

273,063,677.21

Deferred income 178,674,326.23

160,250,963.60

Deferred income tax liabilities 5,996,351.53

3,098,699.11

Other non-current liabilities

Total non-current liabilities 714,771,693.78

462,423,649.21

Total liabilities 9,689,690,457.60

10,426,260,139.38

CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)Owner’s equity:

Share capital 1,044,597,881.00

1,044,597,881.00

Other equity instrument

Including: Preferred stock

Perpetual capital securities

Capital public reserve 2,684,369,598.46

2,684,369,598.46

Less: Inventory shares

Other comprehensive income -19,943,038.08

-18,143,569.26

Reasonable reserve

Surplus public reserve 399,650,743.38

400,673,993.50

Provision of general risk

Retained profit 919,574,400.51

904,232,582.87

Total owner’ s equity attributable to parentcompany

5,028,249,585.27

5,015,730,486.57

Minority interests 99,805,237.51

119,819,558.59

Total owner’ s equity 5,128,054,822.78

5,135,550,045.16

Total liabilities and owner’ s equity 14,817,745,280.38

15,561,810,184.54

Legal Representative: Wu DinggangPerson in charge of accounting works: Pang HaitaoPerson in charge of accounting institute: Yang Jun

2. Balance Sheet of Parent Company

In RMBItem 2019-9-30 2018-12-31Current assets:

Monetary funds 2,533,546,477.86

2,897,004,041.87

Tradable financial assets 18,609,751.92

Financial assets measured by fair valueand with variation reckoned into currentgains/losses

9,253,635.59

Derivative financial assets

Note receivable 1,859,464,078.52

2,433,243,946.64

Account receivable 1,591,344,853.71

1,050,282,023.37

CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)Receivable financing

Accounts paid in advance 70,902,531.74

58,710,427.38

Other account receivable 120,202,355.79

182,744,033.52

Including: Interest receivable 4,375,967.13

2,653,712.36

Dividend receivable

Inventories 508,513,344.71

911,130,106.30

Contractual assets

Assets held for sale

Non-current assets maturing within oneyear

Other current assets 932,869,684.42

1,113,987,528.70

Total current assets 7,635,453,078.67

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 1,673,298,342.35

1,731,109,903.70

Investment in other equity instrument

Other non-current financial assets 45,000,000.00

Investment real estate 7,401,135.77

7,618,550.16

Fixed assets 1,107,406,361.27

1,082,915,540.08

Construction in progress 119,090,090.55

125,064,106.10

Productive biological assets

Oil and natural gas assets

Right-of-use assets

Intangible assets 490,249,642.28

462,425,105.64

Research and development costs 50,073,095.15

57,383,653.72

Goodwill

Long-term deferred expenses

Deferred income tax assets 69,879,472.55

78,357,299.17

Other non-current assets

Total non-current assets 3,562,398,139.92

3,589,874,158.57

CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)Total assets 11,197,851,218.59

12,246,229,901.94

Current liabilities:

Short-term borrowings 1,490,939,946.14

1,911,719,726.13

Tradable financial liability 15,587,041.20

Financial liability measured by fair valueand with variation reckoned into currentgains/losses

19,893,875.00

Derivative financial liability

Notes payable 1,914,046,194.51

2,001,442,110.63

Account payable1,463,334,535.04

2,011,821,519.82

Accounts received in advance 136,130,911.42

105,815,140.88

Contractual liability

Wage payable 10,403,330.27

31,271,182.48

Taxes payable 15,279,477.06

21,992,129.58

Other accounts payable 405,280,969.94

427,293,961.56

Including: Interest payable 21,406,060.48

5,801,215.14

Dividend payable 3,579,491.94

17,317,286.45

Liability held for sale

Non-current liabilities due within one year 300,000.00

258,588,504.48

Other current liabilities

Total current liabilities 5,451,302,405.58

6,789,838,150.56

Non-current liabilities:

Long-term loans 301,280,000.00

1,920,000.00

Bonds payable

Including: preferred stock

Perpetual capital securities

Lease liability

Long-term account payable

Long term employee compensationpayable

14,353,019.26

19,073,101.29

Accrued liabilities 201,749,137.83

266,641,323.73

Deferred income 65,485,095.39

53,118,676.50

Deferred income tax liabilities

Other non-current liabilities

Total non-current liabilities 582,867,252.48

340,753,101.52

CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)Total liabilities 6,034,169,658.06

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 399,432,577.70

400,455,827.82

Retained profit 966,634,094.73

917,567,933.94

Total owner’s equity 5,163,681,560.53

5,115,638,649.86

Total liabilities and owner’s equity 11,197,851,218.59

12,246,229,901.94

Legal Representative: Wu DinggangPerson in charge of accounting works: Pang HaitaoPerson in charge of accounting institute: Yang Jun

3. Consolidated Profit Statement (the period)

In RMBItem Current Period Last PeriodI. Total operating income 3,907,875,881.65

3,977,110,177.70

Including: Operating income 3,907,875,881.65

3,977,110,177.70

Interest income

Insurance gained

Commission charge and commissionincome

II. Total operating cost 3,877,092,843.63

3,959,824,308.46

Including: Operating cost 3,120,899,900.24

3,205,017,999.93

Interest expense

Commission charge and commissionexpense

Cash surrender value

CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)Net amount of expense of compensation

Net amount of withdrawal of insurance contractreserve

Bonus expense of guarantee slip

Reinsurance expense

Tax and extras 37,337,949.44

37,835,191.90

Sales expense 596,324,632.05

597,903,240.88

Administrative expense 75,991,835.54

79,376,133.44

R&D expense 74,045,366.13

59,438,945.43

Financial expense -27,506,839.77

-19,747,203.12

Including: Interest expenses 15,687,265.39

9,955,079.26

Interest income 38,289,853.37

24,694,760.73

Add: other income 44,877,387.39

19,485,556.40

Investment income (Loss is listed with “-”) -49,991,079.10

5,976,620.29

Including: Investment income on affiliatedcompany and joint venture

10,073,856.02

3,618,239.73

The termination of income recognitionfor financial assets measured by amortized cost(Loss islisted with “-”)

Exchange income (Loss is listed with “-”)

Net exposure hedging income (Loss is listedwith “-”)

Income from change of fair value (Loss islisted with “-”)

39,820,680.29

-7,042,861.74

Loss of credit impairment (Loss is listed with“-”)

-8,463,027.84

Losses of devaluation of asset (Loss is listedwith “-”)

-14,086,299.07

-9,548,787.87

Income from assets disposal (Loss is listedwith “-”)

-3,498,765.23

192,920.94

III. Operating profit (Loss is listed with “-”) 39,441,934.46

26,349,317.26

Add: Non-operating income 3,218,452.87

1,361,065.01

Less: Non-operating expense 1,413,579.86

19,458.62

IV. Total profit (Loss is listed with “-”) 41,246,807.47

27,690,923.65

Less: Income tax expense 18,695,794.99

14,864,849.63

V. Net profit (Net loss is listed with “-”) 22,551,012.48

12,826,074.02

(i) Classify by business continuity

1.continuous operating net profit (net loss listed

with ‘-”)

22,551,012.48

12,826,074.02

2.termination of net profit (net loss listed with ‘-”)

(ii) Classify by ownership

1.Net profit attributable to owner’s of parent

company

26,417,996.84

14,954,274.39

2.Minority shareholders’ gains and losses -3,866,984.36

-2,128,200.37

VI. Net after-tax of other comprehensive income 3,855,002.26

2,472,400.15

Net after-tax of other comprehensive incomeattributable to owners of parent company

2,611,878.24

1,782,853.09

(I) Other comprehensive income items which willnot 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 whichwill be reclassified subsequently to profit or loss

2,611,878.24

1,782,853.09

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-

that re-classify to available-for-sale financial asset

maturity investments

6.Credit impairment provision for other

debt investment

7.Cash flow hedging reserve

8.Translation differences arising on

translation of foreign currency financial statements

2,611,878.24

1,782,853.09

9.Other

Net after-tax of other comprehensive incomeattributable to minority shareholders

1,243,124.02

689,547.06

VII. Total comprehensive income 26,406,014.74

15,298,474.17

Total comprehensive income attributable to owners

of parent Company

29,029,875.08

16,737,127.48

Total comprehensive income attributable tominority shareholders

-2,623,860.34

-1,438,653.31

VIII. Earnings per share:

(i) Basic earnings per share 0.0253

0.0143

(ii) Diluted earnings per share 0.0253

0.0143

As for the enterprise combined under the same control, net profit of 0 Yuan achieved by the merged party before combination while 0Yuan achieved last periodLegal Representative: Wu DinggangPerson in charge of accounting works: Pang HaitaoPerson in charge of accounting institute: Yang Jun

4. Profit Statement of Parent Company (the period)

In RMBItem Current Period Last PeriodI. Operating income 2,664,004,704.29

2,490,700,722.60

Less: Operating cost 2,406,427,108.32

2,148,535,254.62

Taxes and surcharge 21,743,329.48

14,469,596.73

Sales expenses 138,981,640.75

201,139,184.30

Administration expenses 32,418,153.86

36,055,056.31

R&D expenses 29,405,298.29

23,407,166.72

Financial expenses -6,393,797.98

-3,565,651.74

Including: interest expenses 11,934,462.19

13,724,471.67

Interest income 28,622,977.37

16,389,944.68

Add: other income 38,236,515.77

13,689,025.64

Investment income (Loss is listed with “-”) -3,964,727.76

19,003,123.97

Including: Investment income on affiliatedCompany and joint venture

5,794,277.12

1,686,779.58

The termination of income recognition

listed with “-”)Net exposure hedging income (Loss is listedwith “-”)

for financial assets measured by amortized cost (Loss is

Changing income of fair value (Loss is listedwith “-”)

6,592,242.68

-11,287,554.36

Loss of credit impairment (Loss is listed with“-”)

-2,371,132.58

Losses of devaluation of asset (Loss is listedwith “-”)

-3,585,011.06

-10,616,799.13

Income on disposal of assets (Loss is listedwith “-”)

132,203.39

-3,617.48

II. Operating profit (Loss is listed with “-”) 76,463,062.01

81,444,294.30

Add: Non-operating income 23,930.00

128,162.00

Less: Non-operating expense 248,133.83

III. Total Profit (Loss is listed with “-”) 76,238,858.18

81,572,456.30

Less: Income tax 7,419,865.03

10,250,540.26

IV. Net profit (Net loss is listed with “-”) 68,818,993.15

71,321,916.04

(i)continuous operating net profit (net loss listedwith ‘-”)

68,818,993.15

71,321,916.04

(ii) termination of net profit (net loss listed with‘-”)

V. Net after-tax of other comprehensive income

(I) Other comprehensive income items which willnot 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 whichwill 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-

that re-classify to available-for-sale financial asset

maturity investments

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 68,818,993.15

71,321,916.04

VII. Earnings per share:

(i) Basic earnings per share 0.0659

0.0683

(ii) Diluted earnings per share 0.0659

0.0683

Legal Representative: Wu DinggangPerson in charge of accounting works: Pang HaitaoPerson in charge of accounting institute: Yang Jun

5. Consolidated Profit Statement (form the year-begin to the period-end)

In RMBItem Current Period Last PeriodI. Total operating income 13,041,038,562.59

13,248,619,747.37

Including: Operating income 13,041,038,562.59

13,248,619,747.37

Interest income

Insurance gained

Commission charge and commissionincome

II. Total operating cost 12,994,783,658.83

13,201,080,887.97

Including: Operating cost 10,611,455,437.49

10,963,171,561.02

Interest expense

CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)Commission charge and commissionexpense

Cash surrender value

Net amount of expense of compensation

Net amount of withdrawal of insurance contractreserve

Bonus expense of guarantee slip

Reinsurance expense

Tax and extras 117,977,709.18

102,882,052.60

Sales expense 1,840,716,388.92

1,787,644,342.20

Administrative expense 240,384,878.24

228,370,924.33

R&D expense 194,093,406.99

152,219,238.87

Financial expense -9,844,161.99

-33,207,231.05

Including: Interest expenses 73,580,264.70

70,110,789.68

Interest income 97,691,279.74

88,992,292.78

Add: other income 80,188,595.99

68,046,614.02

Investment income (Loss is listed with “-”) -38,327,115.65

20,726,039.38

Including: Investment income on affiliatedcompany and joint venture

1,251,855.70

-12,056,138.08

The termination of income recognitionfor financial assets measured by amortized cost(Loss islisted with “-”)

Exchange income (Loss is listed with “-”)

Net exposure hedging income (Loss is listedwith “-”)

Income from change of fair value (Loss islisted with “-”)

43,185,470.53

-25,833,772.85

Loss of credit impairment (Loss is listed with“-”)

1,082,468.11

Losses of devaluation of asset (Loss is listedwith “-”)

-24,702,231.08

-28,486,908.52

Income from assets disposal (Loss is listedwith “-”)

-4,436,536.97

3,476,687.51

III. Operating profit (Loss is listed with “-”) 103,245,554.69

85,467,518.94

Add: Non-operating income 5,694,649.89

5,443,167.59

Less: Non-operating expense 3,776,106.23

60,249.87

IV. Total profit (Loss is listed with “-”) 105,164,098.35

90,850,436.66

CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text) Less: Income tax expense 36,397,055.33

25,015,797.92

V. Net profit (Net loss is listed with “-”) 68,767,043.02

65,834,638.74

(i) Classify by business continuity

1.continuous operating net profit (net loss listed

with ‘-”)

68,767,043.02

65,834,638.74

2.termination of net profit (net loss listed with ‘-”)

(ii) Classify by ownership

1.Net profit attributable to owner’s of parent

company

80,752,019.41

65,638,506.12

2.Minority shareholders’ gains and losses -11,984,976.39

196,132.62

VI. Net after-tax of other comprehensive income -3,102,378.92

-6,466,960.36

Net after-tax of other comprehensive incomeattributable to owners of parent company

-1,799,468.82

-5,210,496.62

(I) Other comprehensive income items which willnot 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 whichwill be reclassified subsequently to profit or loss

-1,799,468.82

-5,210,496.62

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-ma

that re-classify to available-for-sale financial asset

turity investments

6.Credit impairment provision for other

debt investment

7.Cash flow hedging reserve

8.Translation differences arising on

translation of foreign currency financial statements

-1,799,468.82

-5,210,496.62

9.Other

Net after-tax of other comprehensive incomeattributable to minority shareholders

-1,302,910.10

-1,256,463.74

VII. Total comprehensive income 65,664,664.10

59,367,678.38

Total comprehensive

of parent Company

78,952,550.59

income attributable to owners

60,428,009.50

Total comprehensive income attributable tominority shareholders

-13,287,886.49

-1,060,331.12

VIII. Earnings per share:

(i) Basic earnings per share 0.0773

0.0628

(ii) Diluted earnings per share 0.0773

0.0628

As for the enterprise combined under the same control, net profit of 0 Yuan achieved by the merged party before combination while 0Yuan achieved last periodLegal Representative: Wu DinggangPerson in charge of accounting works: Pang HaitaoPerson in charge of accounting institute: Yang Jun

6. Profit Statement of Parent Company (form the year-begin to the period-end)

In RMBItem Current Period Last PeriodI. Operating income 7,198,760,931.63

6,883,945,824.65

Less: Operating cost 6,438,821,213.52

6,102,437,941.57

Taxes and surcharge 59,372,381.91

44,193,309.99

Sales expenses 477,587,775.78

501,143,891.03

Administration expenses 100,853,326.37

94,252,573.07

R&D expenses 80,879,626.58

69,052,600.75

Financial expenses 2,111,585.97

9,606,238.12

Including: interest expenses 54,418,469.14

55,250,636.77

Interest income 68,936,401.63

57,329,240.66

Add: other income 56,735,800.59

49,742,843.47

Investment income (Loss is listed with “-”) 20,154,143.04

42,953,713.52

CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)Including: Investment income on affiliatedCompany and joint venture

2,961,957.42

3,776,002.08

The termination of income recognitionfor financial assets measured by am

listed with “-”)

ortized cost (Loss is

Net exposure hedging income (Loss is listedwith “-”)

Changing income of fair value (Loss is listedwith “-”)

10,027,189.27

-14,687,912.73

Loss of credit impairment (Loss is listed with“-”)

10,417,545.43

Losses of devaluation of asset (Loss is listedwith “-”)

-6,377,866.03

-14,834,202.44

Income on disposal of assets (Loss is listedwith “-”)

-659,108.67

-880,921.32

II. Operating profit (Loss is listed with “-”) 129,432,725.13

125,552,790.62

Add: Non-operating income 244,520.00

3,874,754.46

Less: Non-operating expense 248,133.83

III. Total Profit (Loss is listed with “-”) 129,429,111.30

129,427,545.08

Less: Income tax 8,477,826.62

7,816,660.55

IV. Net profit (Net loss is listed with “-”) 120,951,284.68

121,610,884.53

(i)continuous operating net profit (net loss listedwith ‘-”)

120,951,284.68

121,610,884.53

(ii) termination of net profit (net loss listed with‘-”)

V. Net after-tax of other comprehensive income

(I) Other comprehensive income items which willnot 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

CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)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-

that re-classify to available-for-sale financial asset

maturity investments

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 120,951,284.68

121,610,884.53

VII. Earnings per share:

(i) Basic earnings per share 0.1158

0.1164

(ii) Diluted earnings per share 0.1158

0.1164

Legal Representative: Wu DinggangPerson in charge of accounting works: Pang HaitaoPerson in charge of accounting institute: Yang Jun

7. Consolidated Cash Flow Statement (form the year-begin to the period-end)

In RMBItem Current Period Last PeriodI. Cash flows arising from operating activities:

Cash received from selling commodities andproviding labor services

12,688,809,148.13

12,294,447,275.35

Net increase of customer deposit and inter-bankdeposit

Net increase of loan from central bank

Net increase of capital borrowed from other

CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)financial institutionCash received from original insurance contract fee

Net cash received from reinsurance business

Net increase of insured savings and investment

Cash received from interest, commission chargeand commission

Net increase of capital borrowed

Net increase of returned business capital

Net cash received by agents in sale and purchaseof securities

Write-back of tax received 280,384,080.90

455,080,647.00

Other cash received concerning operating activities

125,280,221.18

234,806,474.37

Subtotal of cash inflow arising from operating activities

13,094,473,450.21

12,984,334,396.72

Cash paid for purchasing commodities andreceiving labor service

10,506,147,051.44

10,544,503,046.16

Net increase of customer loans and advances

Net increase of deposits in central bank andinter-bank

Cash paid for original insurance contractcompensation

Net increase of capital lent

Cash paid for interest, commission charge andcommission

Cash paid for bonus of guarantee slip

Cash paid to/for staff and workers 1,153,887,410.73

1,233,337,030.56

Taxes paid 448,423,347.16

297,025,746.90

Other cash paid concerning operating activities 784,789,548.98

668,241,202.55

Subtotal of cash outflow arising from operatingactivities

12,893,247,358.31

12,743,107,026.17

Net cash flows arising from operating activities 201,226,091.90

241,227,370.55

II. Cash flows arising from investing activities:

Cash received from recovering investment 2,174,000,000.00

1,900,000,000.00

Cash received from investment income 37,989,139.50

39,313,892.16

Net cash received from disposal of fixed,intangible and other long-term assets

19,483,459.24

17,944,967.00

Net cash received from disposal of subsidiaries

CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)and other units Other cash received concerning investing activities

94,129,473.53

95,944,328.41

Subtotal of cash inflow from investing activities 2,325,602,072.27

2,053,203,187.57

Cash paid for purchasing fixed, intangible andother long-term assets

266,302,834.52

436,847,276.96

Cash paid for investment 1,981,000,000.00

3,020,000,001.00

Net increase of mortgaged loans

Net cash received from subsi

obtained

diaries and other units

Other cash paid concerning investing activities 76,709,995.61

255,500.00

Subtotal of cash outflow from investing activities 2,324,012,830.13

3,457,102,777.96

Net cash flows arising from investing activities 1,589,242.14

-1,403,899,590.39

III. Cash flows arising from financing activitiesCash received from absorbing investment

24,865,000.00

Including: Cash received from absorbingminority shareholders’ investment by subsidiaries

24,865,000.00

Cash received from loans 1,308,256,908.10

2,021,566,261.86

Other cash received concerning financing activities

Subtotal of cash inflow from financing activities 1,308,256,908.10

2,046,431,261.86

Cash paid for settling debts 1,925,202,449.42

2,133,854,035.14

Cash paid for dividend and profit distributing orinterest paying

127,772,072.70

109,269,826.49

Including: Dividend and profit of minorityshareholder paid by subsidiaries

2,274,030.00

Other cash paid concerning financing activities 32,764,857.16

2,050,458.19

Subtotal of cash outflow from financing activities 2,085,739,379.28

2,245,174,319.82

Net cash flows arising from financing activities -777,482,471.18

-198,743,057.96

IV. Influence on cash and cash equivalents due tofluctuation in exchange rate

12,976,331.25

3,791,101.79

V. Net increase of cash and cash equivalents -561,690,805.89

-1,357,624,176.01

Add: Balance of cash and cash equivalents at theperiod -begin

4,484,643,187.93

5,089,765,770.39

VI. Balance of cash and cash equivalents at the period-end

3,922,952,382.04

3,732,141,594.38

Legal Representative: Wu DinggangPerson in charge of accounting works: Pang Haitao

CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)Person in charge of accounting institute: Yang Jun

8. Cash Flow Statement of Parent Company (form the year-begin to the period-end)

In RMBItem Current Period Last PeriodI. Cash flows arising from operating activities:

Cash received from selling commodities andproviding labor services

6,358,153,483.13

5,886,537,353.55

Write-back of tax received 135,160,922.67

214,262,771.43

Other cash received concerning operating activities

66,198,821.85

51,985,080.37

Subtotal of cash inflow arising from operating activities

6,559,513,227.65

6,152,785,205.35

Cash paid for purchasing commodities andreceiving labor service

5,874,686,994.43

5,200,208,904.42

Cash paid to/for staff and workers 327,130,629.38

382,116,598.39

Taxes paid 156,564,790.86

59,998,461.89

Other cash paid concerning operating activities 330,317,153.84

280,528,778.03

Subtotal of cash outflow arising from operatingactivities

6,688,699,568.51

5,922,852,742.73

Net cash flows arising from operating activities -129,186,340.86

229,932,462.62

II. Cash flows arising from investing activities:

Cash received from recovering investment 2,174,000,000.00

1,860,000,000.00

Cash received from investment income 42,579,139.50

41,935,522.31

Net cash received from disposal of fixed,intangible and other long-term assets

6,708,283.94

220,903.00

Net cash received from disposal of subsidiariesand other units

Other cash received concerning investing activities

309,067,175.10

89,093,823.56

Subtotal of cash inflow from investing activities 2,532,354,598.54

1,991,250,248.87

Cash paid for purchasing fixed, intangible andother long-term assets

139,125,420.63

144,003,295.22

Cash paid for investment 1,987,000,000.00

3,030,704,000.00

Net cash received from subsidiaries and other units

obtained

Other cash paid concerning investing activities 75,426,953.88

30,000,000.00

Subtotal of cash outflow from investing activities 2,201,552,374.51

3,204,707,295.22

Net cash flows arising from investing activities 330,802,224.03

-1,213,457,046.35

CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)III. Cash flows arising from financing activities:

Cash received from absorbing investment

Cash received from loans 1,064,409,999.44

1,549,720,995.00

Other cash received concerning financing activities

28,609,663.72

7,594,599.50

Subtotal of cash inflow from financing activities 1,093,019,663.16

1,557,315,594.50

Cash paid for settling debts 1,451,985,025.00

1,468,595,600.00

Cash paid for dividend and profit distributing orinterest paying

114,912,675.86

99,520,906.42

Other cash paid concerning financing activities 121,717,485.21

279,276,931.43

Subtotal of cash outflow from financing activities 1,688,615,186.07

1,847,393,437.85

Net cash flows arising from financing activities -595,595,522.91

-290,077,843.35

IV. Influence on cash and cash equivalents due tofluctuation in exchange rate

8,391,306.55

6,180,497.06

V. Net increase of cash and cash equivalents -385,588,333.19

-1,267,421,930.02

Add: Balance of cash and cash equivalents at theperiod -begin

2,894,384,811.05

3,410,029,424.54

VI. Balance of cash and cash equivalents at the period-end

2,508,796,477.86

2,142,607,494.52

II. Financial statement adjustment

1.Relevant items of the financial statement at beginning of the year when implementing the new financial

instrument standards, new revenue standards or new leasing standards since 2019

√ Applicable □ Not applicable

Consolidated Balance Sheet

In RMBItem 2018-12-31 2019-01-01 AdjustmentCurrent assets:

Monetary funds 4,596,077,557.40

4,596,077,557.40

Settlement provisions

Capital lent

Tradable financial assets

9,253,635.59

9,253,635.59

Financial assets measured by fair value andwith variation reckoned into current gains/losses

9,253,635.59

-9,253,635.59

Derivative financial assets

Note receivable 2,387,830,887.74

2,370,568,253.64

-17,262,634.10

CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text) Account receivable 1,670,988,644.76

1,673,362,136.29

2,373,491.53

Receivable financing

Accounts paid in advance 86,180,459.26

86,180,459.26

Insurance receivable

Reinsurance receivables

Contract reserve of reinsurance receivable

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

Dividend receivable

Buying back the sale of financial assets

Inventories 2,174,436,573.67

2,174,436,573.67

Contractual assets

Assets held for sale

Non-current asset due within one year

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:

Loans and payments on behalf

Debt investment

Finance asset available for sales 45,000,000.00

-45,000,000.00

Other debt investment

Held-to-maturity investment

Long-term account receivable

Long-term equity investment 61,869,440.55

67,552,541.78

5,683,101.23

Investment in other equity instrument

Other non-current financial assets

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

Productive biological asset

Oil and gas asset

Right-of-use assets

Intangible assets 817,579,958.94

817,579,958.94

Expense on Research and Development 108,210,966.60

108,210,966.60

CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)Goodwill

Long-term expenses to be apportioned

Deferred income tax asset 112,203,656.75

112,203,656.75

Other non-current asset

Total non-current asset 3,390,225,894.99

3,395,908,996.22

5,683,101.23

Total assets 15,561,810,184.54

15,553,667,309.96

-8,142,874.58

Current liabilities:

Short-term loans 2,336,373,929.62

2,336,373,929.62

Loan from central bank

Capital borrowed

Tradable financial liability

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

-55,586,666.70

Derivative financial liability

Note payable3,727,754,399.60

3,727,754,399.60

Account payable 2,282,174,981.38

2,282,174,981.38

Accounts received in advance 354,551,354.80

354,551,354.80

Contractual liability

Selling financial asset of repurchase

Absorbing deposit and inter-bank deposit

Security trading of agency

Security sales of agency

Wage payable 163,638,627.79

163,638,627.79

Taxes payable 109,753,432.17

109,753,432.17

Other account 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

Commission charge and commission payable

Reinsurance payable

Liability held for sale

Non-current liabilities due within one year 273,682,737.85

273,682,737.85

Other current liabilities

Total current liabilities 9,963,836,490.17

9,963,836,490.17

Non-current liabilities:

CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)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 5,017,208.00

5,017,208.00

Long-term wages payable 19,073,101.29

19,073,101.29

Accrual liability 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

Total non-current liabilities 462,423,649.21

462,423,649.21

Total liabilities 10,426,260,139.38

10,426,260,139.38

Owner’s equity:

Share capital 1,044,597,881.00

1,044,597,881.00

Other equity instrument

Including: Preferred stock

Perpetual capital securities

Capital public reserve 2,684,369,598.46

2,684,369,598.46

Less: Inventory shares

Other comprehensive income -18,143,569.26

-18,143,569.26

Reasonable reserve

Surplus public reserve 400,673,993.50

399,650,743.38

-1,023,250.12

Provision of general risk

Retained profit 904,232,582.87

901,498,253.96

-2,734,328.91

Total owner’ s equity attributable to parentcompany

5,015,730,486.57

5,011,972,907.54

-3,757,579.03

Minority interests 119,819,558.59

115,434,263.04

-4,385,295.55

Total owner’ s equity 5,135,550,045.16

5,127,407,170.58

-8,142,874.58

Total liabilities and owner’ s equity 15,561,810,184.54

15,553,667,309.96

-8,142,874.58

Explanation:

The Company implemented the new financial instrument standards since 1 Jan. 2019, the “Financial assetsmeasured by fair value and with its variation reckoned into current gains/losses” adjusted to “Tradable financialassets”, the “Financial assets available for sale” adjusted to “Other non-current financial assets”, the “Financial

CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)liabilities measured by fair value and with its variation reckoned into current gains/losses” adjusted to “Tradablefinancial liabilities”.Under the convergence provisions of the new financial instrument standards, the Company need not restateprior comparability, there is no need to adjust the information presented in the comparative financial statementsthat is inconsistent with the requirements of the new standards. The difference between original book value of afinancial instrument and the new book value at the date of implementation of these standards, will reckon into theretained income for period-begin of 2019.The joint venture-Sichuan Zhiyijia Network Technology Co., Ltd implemented the new financial instrumentstandards since 2019, and adjusted the owners equity at year-beginning, the Company synchronized adjustmentaccording to the shareholding ratio, and reckoned into the long-term equity investment of year-beginning for year2019 and retained income for year-begin.

Balance Sheet of Parent Company

In RMBItem 2018-12-31 2019-01-01 AdjustmentCurrent assets:

Monetary funds 2,897,004,041.87

2,897,004,041.87

Tradable financial assets

9,253,635.59

9,253,635.59

Financial assets measured by fair value and withvariation reckoned into current gains/losses

9,253,635.59

-9,253,635.59

Derivative financial assets

Note receivable 2,433,243,946.64

2,419,743,946.64

-13,500,000.00

Account receivable 1,050,282,023.37

1,047,769,123.31

-2,512,900.06

Receivable financing

Accounts paid in advance 58,710,427.38

58,710,427.38

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

Dividend receivable

Inventories 911,130,106.30

911,130,106.30

Contractual assets

Assets held for sale

Non-current assets maturing within one year

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:

Debt investment

Available-for-sale financial assets 45,000,000.00

-45,000,000.00

CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)Other debt investment

Held-to-maturity investments

Long-term receivables

Long-term equity investments 1,731,109,903.70

1,736,793,004.93

5,683,101.23

Investment in other equity instrument

Other non-current financial assets

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

Productive biological assets

Oil and natural gas assets

Right-of-use assets

Intangible assets 462,425,105.64

462,425,105.64

Research and development costs 57,383,653.72

57,383,653.72

Goodwill

Long-term deferred expenses

Deferred income tax assets 78,357,299.17

78,357,299.17

Other non-current assets

Total non-current assets 3,589,874,158.57

3,595,557,259.80

5,683,101.23

Total assets 12,246,229,901.94

12,235,997,400.79

-10,232,501.15

Current liabilities:

Short-term borrowings 1,911,719,726.13

1,911,719,726.13

Tradable financial liability

19,893,875.00

19,893,875.00

Financial liability measured by fair value andwith variation reckoned into current gains/losses

19,893,875.00

-19,893,875.00

Derivative financial liability

Notes payable2,001,442,110.63

2,001,442,110.63

Account payable 2,011,821,519.82

2,011,821,519.82

Accounts received in advance 105,815,140.88

105,815,140.88

Contractual liability

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

CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)Dividend payable 17,317,286.45

17,317,286.45

Liability held for sale

Non-current liabilities due within one year 258,588,504.48

258,588,504.48

Other current liabilities

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

Bonds payable

Including: preferred stock

Perpetual capital securities

Lease liability

Long-term account payable

Long term employee compensation payable 19,073,101.29

19,073,101.29

Accrued liabilities 266,641,323.73

266,641,323.73

Deferred income 53,118,676.50

53,118,676.50

Deferred income tax liabilities

Other non-current liabilities

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

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 400,455,827.82

399,432,577.70

-1,023,250.12

Retained profit 917,567,933.94

908,358,682.91

-9,209,251.03

Total owner’s equity 5,115,638,649.86

5,105,406,148.71

-10,232,501.15

Total liabilities and owner’s equity 12,246,229,901.94

12,235,997,400.79

-10,232,501.15

Explanation:

The Company implemented the new financial instrument standards since 1 Jan. 2019, the “Financial assetsmeasured by fair value and with its variation reckoned into current gains/losses” adjusted to “Tradable financial

CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)assets”, the “Financial assets available for sale” adjusted to “Other non-current financial assets”, the “Financialliabilities measured by fair value and with its variation reckoned into current gains/losses” adjusted to “Tradablefinancial liabilities”.

Under the convergence provisions of the new financial instrument standards, the Company need not restateprior comparability, there is no need to adjust the information presented in the comparative financial statementsthat is inconsistent with the requirements of the new standards. The difference between original book value of afinancial instrument and the new book value at the date of implementation of these standards, will reckon into theretained income for period-begin of 2019.The joint venture-Sichuan Zhiyijia Network Technology Co., Ltd implemented the new financial instrumentstandards since 2019, and adjusted the owners equity at year-beginning, the Company synchronized adjustmentaccording to the shareholding ratio, and reckoned into the long-term equity investment of year-beginning for year2019 and retained income for year-begin.

2. Explanation on comparative data in the early stage of retroactive adjustment while implemented the new

financial instrument standards or new leasing standards since 2019

□ Applicable √ Not applicable

III. Audit reportWhether the 3

rdquarterly report has been audited or not

□Yes √ No

The 3rdquarterly report of the Company has not been audited.

Changhong Meiling Co., Ltd.Chairman: Wu Dinggang18 October 2019