CHANGHONG MEILING CO., LTD.
Semi-Annual Report 2021
August 2021
Section I. Important Notice, Contents and Interpretation
Board of Directors, Supervisory Committee, all directors, supervisors and senior executives of ChanghongMeiling Co., Ltd. (hereinafter referred to as the Company) hereby confirm that there are no any fictitiousstatements, misleading statements, or important omissions carried in this report, and shall take all responsibilities,individual and/or joint, for the reality, accuracy and completion of the whole contents.Mr. Wu Dinggang, Chairman of the Company, Mr. Pang Haitao, person in charge of accounting work and Mr.Yang Jun, person in charge of accounting organ (accountant in charge) hereby confirm that the Financial Report of2021Semi- Annual Report is authentic, accurate and complete.
The Company did not have directors, supervisors and senior executives of the Company could not guarantee thereality, accuracy and completion of the whole contents or have objections.All the directors attended the board meeting to deliberating the Report by a combination of on-site andcommunication.Modified audit opinions notes
□ Applicable √ Not applicable
Risk warning of concerning the forward-looking statements with future planning involved in semi-annual report
√ Applicable □Not applicable
Concerning the forward-looking statements with future planning involved in the Report, they do not constitute asubstantial commitment for investors, investors and the person concerned should maintain adequate riskawareness, furthermore, differences between the plans, forecast and commitments should be comprehended.Investors are advised to exercise caution of investment risks.
Investors are advised to read the full text of semi-annual report, and pay particular attention to the following riskfactors:
More details about the possible risks and countermeasures in the operation of the Company are described in thereport “X. Risks and countermeasures” of “Section III Management Discussion and Analysis”, investors areadvised to read the relevant content.Securities Times, China Securities Journal, Hong Kong Commercial Daily and Juchao Website(www.cninfo.com.cn) are the media for information disclosure for year of 2021 that appointed by the Company.All public information under the name of the Company disclosed on the above said media and website shallprevail, and investors are advised to exercise caution.
Does the Company need to comply with disclosure requirements of the special industry: NoProfit distribution pre-plan or capitalizing of common reserves pre-plan deliberated by the Board in the semi-annual period
□Applicable √Not applicable
The Company has no plans of cash distribution, bonus shares and capitalizing of common reserves either.Directors, supervisor and senior executives of the Company respectively signed Written Confirmation Opinionsfor 2021 Semi-Annual Report.Supervisory Committee of the Company formed Written Examination Opinions for 2021 Semi-Annual Report.
Contents
Section I. Important Notice, Contents and Interpretation ................................................................................... 1
Section II Company Profile and Main Financial Indexes ...... 5
Section III. Management Discussion and Analysis ............................................................................................... 9
Section IV. Corporate Governance ....................................................................................................................... 31
Section V. Environmental and Social Responsibility .......................................................................................... 33
Section VI. Important Events ............................................................................................................................... 38
Section VII. Changes in Shares and Particulars about Shareholders ............................................................... 99
Section VIII. Preferred Stock ............................................................................................................................. 105
Section IX. Corporate Bonds .............................................................................................................................. 106
Section X. Financial Report ................................................................................................................................ 107
Section XI. Documents available for Reference ................................................................................................ 256
InterpretationItems Refers to Contents
Company, The Company, Changhong
Meiling
Refers to CHANGHONG MEILING CO.,LTD.Sichuan Changhong or
| Company, The Company, Changhong |
| controlling |
shareholder
Refers to Sichuan Changhong Electric Co., Ltd.Changhong Group Refers to
Sichuan Changhong Electronics Holding Group Co.,Ltd.Hong Kong Changhong Refers to CHANGHONG (HK) TRADING LIMITED
| Industry Investment Group | Refers to | Hefei Industry Investment Holding (Group) Co., Ltd. |
Meiling Group Refers to Hefei Meiling Group Holdings Limited
| Zhongke Meiling | Refers to | Zhongke Meiling Cryogenic Technology Co., Ltd. |
| Changhong Air-conditioner | Refers to | Sichuan Changhong Air-conditioner Co., Ltd. |
Jiangxi Meiling Refers to Jiangxi Meiling Electric Appliance Co., Ltd.
| Zhongshan Changhong | Refers to | Zhongshan Changhong Electric Co., Ltd. |
Ridian Technology Refers to Changhong Meiling Ridian Technology Co., Ltd.
| Changmei Life | Refers to | Hefei Changhong Meiling Life Appliances Co., Ltd. |
Changhong Huayi Refers to Changhong Huayi Compressor Co., Ltd.
| Shine Wing | Refers to | Shine Wing Certified Public Accountants (LLP) |
| CSRC | Refers to | China Securities Regulatory Commission |
Anhui Securities Bureau Refers to
Province Securities Regulatory Bureau
| China Securities Regulatory Commission, Anhui | ||
| SSE | Refers to | Shenzhen Stock Exchange |
Section II Company Profile and Main Financial Indexes
I. Company profile
Short form of the stock
Changhong Meiling,Hongmeiling B
Stock code 000521, 200521Short form of the Stock after changed
(if applicable)
N/AStock exchange for listing Shenzhen Stock ExchangeName of the Company (in Chinese)长虹美菱股份有限公司Short form of the Company (in
Chinese)(if applicable)
长虹美菱Foreign name of the Company (if
applicable)
CHANGHONG MEILING CO.,LTD.
Abbr. of English name of the Company
(if applicable)
CHMLLegal representative Wu Dinggang
II. Person/Way to contact
Secretary of the Board
Abbr. of English name of the Company
Name
| Name | Li Xia |
Contact add. No. 2163, Lianhua Road, Economic and Technology Development Zone, HefeiTel. 0551-62219021Fax. 0551-62219021e-mail lixia@meiling.com
III. Others
(1) Way of contact
Whether registrations address, offices address and codes as well as website and email of the Company changed inreporting period or not
□ Applicable √ Not applicable
Registrations address, offices address and codes as well as website and email of the Company has no change inreporting period, found more details in Annual Report 2020.
(2) Information disclosure and preparation place
Whether information disclosure and preparation place changed in reporting period or not
□ Applicable √ Not applicable
The newspaper appointed for information disclosure, website for semi-annual report publish appointed by CSRC
and preparation place for semi-annual report have no change in reporting period, found more details in AnnualReport 2020.
(3) Other relevant information
Whether other relevant information has changed in reporting period or not
□Applicable √Not applicable
IV. Main accounting data and financial indexesWhether it has retroactive adjustment or re-statement on previous accounting data or not
□Yes √No
Current period Same period last year
Changes in the current reportingperiod compared with the sameperiod of the previous year (+,-)
Operating income (RMB)
| Operating income (RMB) | 9,602,759,345.29 | 6,795,860,736.99 | 41.30% |
| Net profit attributable to shareholders of the |
listed company (RMB)
37,157,511.54
-
| 210,130,580.93 |
117.68%
| Net profit attributable to shareholders of the |
listed company after deducting non-
gains and losses (RMB)
-63,552,415.01
| recurring |
-
| 257,134,663.36 | 75.28% | ||
| Net cash flow arising from operating activities |
(RMB)
-588,496,116.82
-
| 388,104,958.41 |
-
Basic earnings per share (RMB/Share)
| 51.63% | ||
| 0.0356 |
-0.2012
117.69%
Diluted earnings per share (RMB/Share)
-0.2012
| 0.0356 |
117.69%
Weighted average ROE 0.76%
-
5.05 percentage points up
End of current period End of last year
Changes at the end of the reportingperiod compared with the end of the
previous year (+,-)Total assets (RMB)16,883,347,047.17
4.29%
| 16,103,355,454.46 | 4.84% |
Net assets attributable to shareholder of listedcompany (RMB)
| 4,831,250,533.72 | 4,854,173,682.43 |
-
V. Accounting data difference under domestic and foreign accounting standards
(1) Difference of the net profit and net assets disclosed in financial report, under both IAS (International
Accounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable √ Not applicable
The Company has no difference of the net profit and net assets disclosed in financial report, under both IAS(International Accounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles) in reportingperiod.
2.Difference of the net profit and net assets disclosed in financial report, under both foreign accounting
rules and Chinese GAAP (Generally Accepted Accounting Principles)
√ Applicable □ Not applicable
In RMB
Net profit attributable to shareholders of listed
company
| Net profit attributable to shareholders of listed | Net assets attributable to shareholders of listed |
companyAmount in this period Amount in last period Amount at period-end
Amount at period-
beginChinese GAAP 37,157,511.54
-210,130,580.93
4,831,250,533.72
4,854,173,682.43
Items and amount adjusted by foreign accounting rulesForeign accounting rules
-
| 37,157,511.54 | 210,130,580.93 |
4,831,250,533.72
4,854,173,682.43
The Company had no difference of the net profit or net assets disclosed in financial report, under either foreignaccounting rules or Chinese GAAP (Generally Accepted Accounting Principles) in the period.
(3) Reasons for the differences of accounting data under accounting rules in and out of China
√ Applicable □ Not applicable
The “Notice of Relevant Issues of Audit for Company with Domestically Foreign Shares Offering” was issuedfrom CSRC dated 12 September 2007, since the day issuing, cancel the previous “dual audit” requirement forcompanies who offering domestically listed foreign shares (B-share enterprise) while engaging securities practicequalification CPA for auditing. The Company did not compile financial report under foreign accounting rulessince 2007, the financial report of the Company is complying on the “Accounting Standard for BusinessEnterprise” in China, and therefore, there are no differences of accounting data under accounting rules in and outof China at period-end.VI. Items and amounts of non-recurring profit (gains)/losses
√ Applicable □ Not applicable
In RMB
Item Amount NoteGains/losses from the disposal of non-current asset (including the write-off that accrued for impairment of assets)
-736,583.34
Found more in “Income fromassets disposal”, “non-
| operation |
income & expenditure”Governmental subsidy reckoned into current gains/losses
the subsidy enjoyed in
| quota or ration according to national standards, |
which are closely relevant to enterprise’s business)
54,702,099.76
Found more in “Other income”
Losses/gains from changes of fair values occurred in holding trading
financial assets, derivative financial
| assets, trading financial liabilities and derivative financial liabilities, and investment income obtaining from the disposal of trading financial assets, derivative financial assets, trading |
financial liability, derivative financial liability and other de
the Company
58,849,862.38
| bt investment, excluded effective hedging business relevant with normal operations of |
Found more in “Income of fairvalue changes”, “Investmentincome”
reserves subject to separate impairment test
1,228,611.25
| Reversal of the account receivable and contract assets depreciation |
Found more in “Accountreceivable”Other non-
aforementioned ones
5,629,332.53
| operating income and expenditure except for the |
”Found more in “Non-
income & expenditure”Less: impact on income tax
17,645,671.62
| operation | |
Impact on minority shareholders’ equity (post-tax)
1,317,724.41
Total
100,709,926.55
Concerning the extraordinary profit (gain)/loss defined by Q&A Announcement No.1 on Information Disclosure for CompaniesOffering Their Securities to the Public --- Extraordinary Profit/loss, and the items defined as recurring profit (gain)/loss according tothe lists of extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering TheirSecurities 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&AAnnouncement No.1 on Information Disclosure for Companies Offering Their Securities to the Public --- Extraordinary Profit/loss,in the period.
Section III. Management Discussion and AnalysisI. Main businesses of the company engaged in during the PeriodThe Company is one of China's major electric appliance manufacturers, possesses four major domesticmanufacturing bases in Hefei, Mianyang, Jingdezhen and Zhongshan, and two overseas manufacturing bases inIndonesia and Pakistan. Currently, we have completed the industry layout of white electricity basically, coveringthe full product line including refrigerator, washing machine, air conditioner, kitchen and bath, small householdappliances and others, at the same time, the Company enters the new industrial fields as bio-medical and withcertain achievements made.Over the past 30 years, the Company has always been adhering to the "independent innovation, created in China",and always focus on refrigeration industry without stop, elaborately building the core competitiveness ofenterprises by technological innovation and product innovation. Relying on the cutting-edge R&D team andadvanced technology, Meiling continue to achieve breakthrough results in the variable frequency, intelligence,refreshment, thin-wall, odourless, energy-saving, forced air cooling, deep cooling and other fields.The company has set up the first RoHS public testing center in Anhui Province, the national enterprise technologycenter, the national industrial design center, and the 5G industrial internet innovation application laboratory. Inrecent years, the Company has successively awarded several national honorary titles as the “Smart RefrigeratorIntelligent Manufacturing Pilot Demonstration Project”, the “National Green Factory”, the “National IndustrialDesign Center” and “2020 Top 10 Light Industry Technology Enterprises in China” etc.At the same time, many products of Meiling have repeatedly won a number of domestic and internationalinnovation awards, continuously demonstrating the capabilities and strength of Meiling's intelligent manufacturingand Meiling brand intelligent innovation technology. At the 2021 AWE Award Ceremony, "Very Clean" BCD-503WUP9BQ, the company's new high-end refrigerator won the AWE Excellent Product Award for its excellentproduct design and innovative intelligent technology. In the China Refrigerator Industry Symposium, 2021,Meiling refrigerator stood out, with its leading fresh-keeping technology and excellent quality, "Very clean" BCD-503WUP9BQ won the "Fresh Clean Star", and "Star" refrigerator BCD-532WPUCY won the "OutstandingChannel Performance Product Award". At the same time, with its deep cultivation and innovation in fresh-keepingtechnology, the company won the only "Annual Pioneer Freshness-Preservation Brand" award of Chinarefrigerator industry.In recent years, driven by the industry transformation and upgrades and consumption upgrades, the Companyalways adheres to the strategy of smart and variable frequency products, promoted the Company’s products totransform and upgrade to become intelligent and high-end and comprehensively enhanced the competitiveness ofproducts in the industry by grasping the opportunities of refreshment, thin-wall, odourless, air cooling and energyefficiency upgrades and effectively resolving the pain points of customers. Under the guidance of the “intelligent”strategy, in recent year, the Company has released and listed a number of CHiQ series of smart refrigerators and
air-conditioning products, “M-Fresh” refrigerators, “M-Fresh” comprehensive thin series products and “veryclean” series of refrigerators, Meiling always leads the trend of the industry by solving the pain points of userseffectively. In April 2021, the company joined hands with Jingdong and launched the "Star" series of mother andinfant refrigerators equipped with LINF spectral plasma technology, which meets the rigid needs of infants &moms in different stages of getting ready for pregnancy, pregnancy and parenting. In July 2021, the secondgeneration of "M Fresh" series products with "zero shock" and "slight freeze" fresh-keeping technology werelaunched, breaking through the restricted area of traditional refrigerator refrigeration and freezing technology, andopening a new competitive track of partially frozen storage in the refrigerator industry.Facing the future, the Company will further improve the home internet layout, accelerate the intelligentization ofhome appliances, form a dual-growth engine of “hardware + services”, drive the transformation and upgrading ofthe Company’s profitability model, investigate the new value-added service models for home applianceenterprises, meet new competition pattern in the industry, and achieve its own sustainable and stable developmentunder the guidance of the core values of “professionalism and shared development”. Meanwhile, based on the“Smart Home Eco-system Project” and the existing products, the company will enhance the R&D, manufacturing,sales and cooperative capabilities of integrated white goods so as to provide users with a complete set of smartwhite goods system solutions.In reporting period, main income of the Company coming from refrigerator (freezer), air conditioner, washingmachine, small home appliances and kitchen & toilet products etc., total amounting to 907,601.96 million Yuan, a
94.51% of the operating income.
II. Core Competitiveness Analysis
(1) Brand capacity
The Company is one of the famous home appliances manufacturers in China, owns several product lines such asrefrigerator, freezing box, air conditioner, washing machine, small household appliances and biomedical etc.“Meiling” brand is listed as one of the most valuable brands in China. In recent years, the Company has create thecompetitiveness of the brand by continuously reshaping its brand image, innovating core technology anddeveloping high-end intelligent products. In terms of reshaping brand image, in order to enhance the brand imageand further expand the market influence, the Company repositioning the brand. In October 2015, the Companycompletely update the LOGO, and launching the new brand proposition of “Meiling, let the good comes”. Alongwith the release of new LOGO, Meiling will also implement a brand strategy of "Good Trilogy", including thedirect sensory experience of “experience the good", the spirit soul enjoyment of “enjoy the good”, and the lifestylefaith of “believe in the good”.In terms of continuous innovation of core technologies, on the one hand, the company continuously promoted theinnovation of fresh-keeping, intelligent and frequency conversion technologies to maintain the leading position inthe industry in order to meet the needs of industry and market development. On the other hand, with the help ofconsumption upgrades, in order to meet the personalized differentiation and diversified needs of consumers. Interms of refrigerator products, the frozen preservation technology of “zero impact” and “micro-freezing”, the
independent research and development of core technologies such as water molecule activation preservationtechnology, comprehensive thin GLS integration technology, and MCN+ clean taste preservation technology haveled the refrigerator industry to return to the home field of preservation and fully enter the era of thin and long-lasting clean taste. In terms of washing machine products, through the development of the three blacktechnologies of the inner cylinder cone expansion technology, the oblique angle stabilization technology, and thecloud disk condensation technology, the "thin", "large" and "simple" industry business cards for washingmachines have been created, and provide a new embedded experience solution for users. Regarding air-conditioning products, we have been adhering to the product concept of "good sleep + good air", focusing onquality, experience, and health for product upgrades. Strictly control quality in terms of comfort and reliabilityindicators, create a brand experience of “extremely quiet, extremely economical, and extremely intelligent” for airconditioners, and carry out layout around the three core functions of “fresh air, self-cleaning, and dust-free”product portfolio.In terms of high-end intelligent product development, the company promoted product innovation throughcontinuous technological innovation. In recent years, the company has successively released CHiQ intelligentseries products, “M-Fresh” refrigerators, “M-Fresh” full-thin series products, “M-Fresh” second generation seriesrefrigerators, “very-clean” series of refrigerator products, “very-thin” series of washing machine, AC constanttemperature fresh air cabinet machine, dust-free separated, intelligent voice tea-bar machine and intelligentelectric water heater etc, created three brand business cards, i.e. “Meiling Fresh” and “Meiling Thin”, and“Meiling Clean” through the introduction of the aforementioned high-end intelligent products, which not only metmarket demand in a timely manner, but also enriched and enhanced the brand image.Promoting the remodeling of brand ability through the continuous upgrading of products, Meiling will realize ayoung, international and professional brand image. Through gradual construction of the ideas of Wonderful StartPoint, Wonderful Life Circle and Wonderful Ecology Circle, Meiling has become a people-oriented artistspecializing in white appliances, a smarter scientific expert and a more reliable house keeper.
(2) Product capacity
For more than 30 years, the company has been focusing on the refrigeration industry, and has developed a numberof different models of refrigerators, mainly including the "M fresh" first generation series of fresh-keepingrefrigerators carrying water molecule activation preservation technology, the "M fresh"second generation series offresh-keeping refrigerators with "zero shock" and "slight freeze" fresh-keeping technology, "Star" series motherand infant refrigerators, "Very Clean" series fresh-keeping and cleaning refrigerators, comprehensive thin productextension 503 series refrigerators, CHiQ series high-end intelligent refrigerators and air conditioners, 0.1℃double precision refrigerator with inverter, North American air cooling products, vertical display cabinets, DW-HL550 independent double temperature zone double control ultra-low temperature low temperature freezer, etc. Inparticular, the company's latest "M Fresh" second generation series of fresh-keeping refrigerators accuratelyrealize preservation - 3.5℃ through zero shock and slight freeze technologies, bringing users three fresh-keepingexperience, i.e. fresh meat preservation for 33 days, zero loss of nutrition, cutting meat without waiting. The "VeryThin" direct drive roller series washing machines developed by the company adopt innovative technology
magnetic suspension ultra-thin DD motor, realizing the product philosophy of "direct drive is cleaner", the mainperformance indicators such as noise and energy efficiency have reached the advanced level at home and abroad.The CHIQ series of air-conditioned constant temperature fresh air cabinet Q6G products use the industry's initialrear-mounted dual-channel independent fresh air technology, which have 95m?/h oversized fresh air volume, andare easy to achieve air ventilation once an hour, its mute is as low as 23 decibels, so that users can enjoy morecomfortable and thermostatic fresh air.
The Company owned advanced development and quality assurance systems, passed management systemcertification of ISO9001, ISO14001 and ISO45001. Product quality has been quality assurance and productperformance is reliable. At the same time, the company has authoritative certifications including “national-leveltechnology center”, ”national-level industrial design center”, “national-level intellectual property demonstrationenterprise” as strong guarantees. In terms of technical research, it is committed to applying basic technologyresearch and industrialization transfer, and has established a technical strategic plan with “intelligence, frequencyconversion, simulation” as core technologies, and “energy saving, fresh keeping, and new materials” as keytechnologies. In terms of product development, based on the technological research results and consumptionupgrade requirements, updated the annual product planning and development outline, increasingly upgraded theproduct structure, continued to increase the development of mid-to-high-end products with characteristic of thin-wall, air-cooling, large-volume, frequency conversion, intelligence, simulation, smart cleaning, odour clean,sterilization, dust removal, silent and developed competitive core products. At the strategic level of the company,continued to adhere to the core idea of “intelligent strategy, productism”, and promoted the company's producttransformation, technological innovation, and industry leadership by advancing the subsequent research anddevelopment, promotion and technical update of intelligent and frequency conversion products. In addition, thecompany shall continue to improve the home appliance product line, lay out multiple product businesses such asair conditioner, washing machines, kitchen and bath products, small home appliances, biomedical, and built acomprehensive home appliance business.
(3) Operation capacity
The Company continues to carry out the whole value chain benchmark work to improve the operationmanagement and competitiveness of the Company. On the basis of the target-oriented performance appraisal,innovation GPI (employee performance growth indicators) management model establishes a sense of competitivecooperation for the external and forms a competitive innovation atmosphere for the internal, effectively activatesthe team, and improves the employee vitality index. And at the same time, we continue to improve the internalcontrol system and enhance the ability to prevent risks.
(4) Marketing ability
The Company has established a relatively complete sales network and service system, which can provide userswith high-quality services covering all categories of white goods. The domestic market is accelerated to realize themarketing transformation from product line-oriented sales management to channel- and user-oriented businessservices, from single-category marketing to full-category marketing. In overseas markets, the company increased
the investments in overseas marketing agencies, research and development bases, production bases, etc.,cooperated with internationally renowned household appliance brands and distributors, continued to optimize thecustomer structure and enhance the product structure, actively explored overseas markets, and exported productsto many countries and regions.III. Main Business Analysis
(1) Overview
Whether the disclosure is the same as the main businesses of the company engaged in during the Period
□Yes √No
1. Introduction
In the first half of 2021, as the country's pandemic prevention and control work became normal, the COVID-19pandemic stabilized and the domestic economy recovered and entered the phase of normal development.Reviewing the first half of the year, the white household appliances market showed a rebound trend and achieveda homogeneous increase in quantity and amount, but the growth rate of the white household appliances market isgradually narrowing, considering the low base caused by the pandemic and other factors in the same period lastyear, the environment faced by the white household appliances market in the second half of the year may becomesevere again. At the same time, consumers' consumption mode and concept have changed, and their consumptionpsychology has become more rational and they are more in pursuit of healthy, intelligent, high-end andpersonalized products, which also forces enterprises to accelerate the adjustment of product structure, improveproduct quality and service ability, and innovate channel reform.In the first half of the year, the Company seized the opportunity of industry recovery and achieved a y-o-y growthin entire product lines, the overall performance has turned into a profit and achieved a healthy growth. Duringthe reporting period,The company operating income increased 41.30% on a year-on-year. Net profit attributable to
shareholders of listed companies increased 117.68% year on year.Among them, the income from business ofrefrigerator and freezer approximately amounted to 40.84 million yuan, a y-o-y growth of 39.82%; AC businessachieved an operating income of approximately 39.59 million yuan, a y-o-y growth of 52.50%; washing machinebusiness have an income of approximately 3.23 million yuan, a y-o-y growth of 79.37%; kitchen & bathroom andsmall home appliance business achieved an income of approximately 5.72 million yuan, a y-o-y growth of
11.54%; refrigeration accessories and other products achieved an operating income of about 1.39 million yuan, a
y-o-y growth of 134.98%. In addition, the foreign business achieved an income from main business of 26.84million yuan, a y-o-y growth of 15.10%.
2. Progress of the company's development strategy and business plan during the reporting period
During the reporting period, in accordance with the development strategy and operating principles of “marketdriven, product leading, efficiency breakthrough and team activation” in 2021, the company has deployed theannual business plan, arranged the production and management, and carried out the following activities:
(1) Market driven
In the domestic market, we unswervingly carry out the transformation of marketing organization, and realize thescale growth and the benign development of operation under the tone of "raising the average price, adjusting thestructure and controlling the profits and losses". By creating the competitive and hot sale products, we implementtransformation and upgrading for offline channels and strengthen the attack on online channels. On the operation,we strengthen the market drive, improve product operation, marketing and other capabilities through the verticalmanagement of the organization. In the first half of this year, the revenue of domestic refrigerator and washingmachine increased by 40%, and the sales of key products increased by 50%. However, due to the impact ofsinking channels and O2O share, the online share did not meet expectations. According to the data of AVC, theonline share of refrigerator was 5.01%, a year-on-year decline of 1.02 percentage points. Domestic airconditioning and bio-medical revenue increased significantly; the kitchen, bathroom and small home appliancesindustry further focused on water ecology, with revenue growth of nearly 12%. In the overseas market, due to theimpact of high ocean freight and rising material costs, backlog of overseas orders and extended lead time, despitethe growth of revenue, the profit and loss pressure was great.
(2) Product leading
In April 2021, the company joined hands with Jingdong and launched the "Star" series of mother and infantrefrigerators, its LINF spectral plasma technology can actively inhibit and eliminate bacteria in the independentlysealed exclusive area for mothers and infants, realizing the long-term safe storage of breast milk, complementaryfood and fresh food ingredients. It can solve the storage needs of mothers and infants for breast milk andcomplementary food, and meet the diversified needs of mothers and infants in different stages of pregnancypreparation, pregnancy and parenting, bringing new storage solutions to users.In May 2021, Meiling released new "Very Thin" direct-drive front loading washing machines MG100-14596DLXand MG100-14596DHLX. The above washing machines are equipped with Meiling Sixth Generation MagneticSuspension Black Technology on the basis of conical bulging technology, inclined barrel stabilization technologyand cloud tray condensed technology, which not only make the inner barrel increase to 530 mm in diameter, depthreduce to 487 mm, 10 centimeters thinner than a traditional washing machine, the thinnest product of the samespecification in the industry, but also eliminate the friction and vibration brought by the traditional belt drive, thesmooth operation brings light tone and noise reduction, the washing sound is only 52dB (A), far below thenational standard 16%. Ultra-high standard technology highlights the core strength of the brand in the coretechnology field of washing machine.In July 2021, the company launched the second generation of "M Fresh" series of new products, which created thethird freshness preservation state - slightly frozen. By looking for the gold temperature of fresh meat preservation(-3.5℃), we developed two core technologies, i.e. zero shock and slight freeze, and combined with the specialinsulation and sealing zone, the sensor and algorithm of precise temperature control, the special zero wind senseair channel and the new energy storage module, so that the fresh meat is in a slightly frozen state, therebyreducing the damage to cells and tissues, greatly extending the shelf life and keep the food in a fresh state for along time, so as to provide consumers with better high-end quality experience.
During the reporting period, the company promoted the deepening research and ability improvement of coretechnology, key technology and hardcore technology through the close combination of technology enabling andproduct application, and product competitiveness continuously strengthened. In the first half year, we continued topromote "fresh, thin, clean" refrigerator, "thin, large, simple" washing machine, "very quiet, very power-saving,very intelligent" air conditioning, and released a variety of products, such as "M Fresh" second generation fresh-keeping refrigerator, DD direct-drive front-loading washing machine, etc., and spared no effort to makedifferentiated, high-profit and high-quality products with Meiling characteristics. At the same time, in terms ofenhancing product competitiveness, the company has launched a product competitiveness model, which evaluatesthe product arrays and the appearance, price, quality, experience and others of single product, and constantlyimproves product competitiveness. During the reporting period, the success rate of new refrigerator and freezerwas improved. BCD-331WUP9B refrigerator and BCD-415WQ3S refrigerator were awarded the New ProductCertificate of Anhui Province, which not only marked that Meiling's technological innovation strength was widelyrecognized by the industry and the society, but also demonstrated Meiling's continuous innovation and satisfactionof user needs.
(3) Efficiency breakthrough
Comprehensively carry out benchmarking, and strengthen internal efficiency. Focus on promoting product costbenchmarking, foaming efficiency benchmarking, sales expense benchmarking, gross profit benchmarking andother work, and has achieved phased results, there into, reduced the impact of the price rise of bulk materials onthe cost through the cost control of each link, the single refrigerator manufacturing cost decreased by about 4%year on year, the gross profit margin of domestic refrigerator and washing machine increased by more than 2percentage points year on year, and the sales expense ratio decreased by more than 5 percentage points year onyear. In terms of digital transformation, the company has established a digital transformation leadership group anda working group to promote the company's digital transformation in terms of digital support business, digital valuecreation, digital driven innovation, digital basic capabilities and other dimensions. At the same time, thecompany's industrial Internet enterprise network security project is the pilot demonstration project for the Ministryof Industry and Information Technology. In terms of management improvement, we carry out the "systemimprovement mode with excellent performance mode as the framework", and promote the continuousimprovement of the company by looking for and improving the weak points.
(4) Team activation
Promote the improvement of the company's performance evaluation and incentive system, and realize employees'self-drive, self-promotion and self-transcendence. Built "KPI + GPI + value sharing" three layers of incentivesystem, formed a sense of competition for the outside, and formed a competitive atmosphere for the inside,distinguished the competition mechanism for different service grades and post categories, established a structuredpay adjustment mechanism, implemented the differentiated salary adjustment + talent reserve optimization,greatly activated the team, and the employee vitality index increased by 42% on a year-on-year basis in the firsthalf of the year.
(2) Y-o-y changes in the key financial data
In RMB
| Current Period | Same period last year | Y-o-y changes (+,-) | Causes |
Operation revenue
| 9,602,759,345.29 | 6,795,860,736.99 |
41.30%
Due to the impact of COVID-
| 19 outbreak in the |
same period of the previous year
| Operation cost | 8,177,231,196.17 | 5,753,849,889.35 | 42.12% | Same as “Operation revenue” |
| Sales expense | 984,805,928.94 | 923,983,428.23 | 6.58% | No major changes |
Administrative expense
| 152,957,426.98 | 135,469,692.92 |
12.91%
No major changesFinancial expense -5,695,990.10
-12,868,114.05
55.74%
| Due to the declined of interest income and |
increase of exchange losses in the PeriodIncome tax expenses 37,086,971.38
-2,863,011.42
1,395.38%
| The increase in income tax expenses resulted from the increase of taxable income for the |
PeriodR&D investment 217,199,272.52
226,678,153.36
-4.18%
-Net cash flow fromoperation activity
-
| 588,496,116.82 |
-
-51.63%
| 388,104,958.41 | Due to the current period of the company to |
increase restricted funds.Net cash flow frominvestment activity
-
-
| 699,480,638.02 | 705,571,689.24 |
0.86%
No major changesNet cash flow fromfinancing activity
-
| 356,001,274.24 | 501,761,856.98 |
-170.95%
Due to the y-o-y decrease in loans and y-o-
| y |
increase in debt payments in the PeriodNet increased amount ofcash and cash equivalent
-
-
| 1,657,978,314.35 | 593,339,307.44 |
-179.43%
| The net cash flow arising from operation and |
financing activities declined on a y-o-y basisInvestment income
| 52,533,705.90 | 7,151,886.26 |
634.54%
| The forward foreign exchange contract delivery |
proceeds increased from a year earlier.Credit impairment loss
-
-
| 15,121,003.89 | 22,270,221.19 |
-32.10%
| Credit impairment loss on account receivable |
decreased from a year earlierAssets impairment loss -
-
| 43,310,366.42 | 26,583,248.58 |
62.92%
| Loss on decline in value of inventories increased |
from a year earlier
(3)Major changes on profit composition or profit resources in reporting period
□ Applicable √ Not applicable
No major changes on profit composition or profit resources occurred in reporting period
(4) Constitute of operation revenue
In RMB
Current Period Same period last year
Y-o-ychanges (+,-
Amount
Ratio in operation
revenue
Amount
Ratio in operation
revenueTotal operation revenue 9,602,759,345.29
| ) | ||
100%
6,795,860,736.99
100%
41.30%
According to industriesManufacture of household appliances
94.51%
| 9,076,019,575.56 |
6,268,491,126.30
92.24%
44.79%
Other business
| 526,739,769.73 |
5.49%
527,369,610.69
7.76%
-0.12%
| According to products | |||||
| Refrigerator, freezer | 4,083,961,202.33 | 42.53% | 2,920,923,251.77 | 42.98% | 39.82% |
Air-conditioning
41.23%
| 3,958,753,350.50 |
2,595,885,454.11
38.20%
52.50%
Washing machine
| 322,671,076.35 |
3.36%
179,892,246.84
2.65%
79.37%
Small appliance and kitchen & toilet
5.96%
| 571,948,185.39 |
512,769,500.40
7.54%
11.54%
Other products
| 138,685,760.99 |
1.44%
59,020,673.18
0.87%
134.98%
| Other business | 526,739,769.73 | 5.48% | 527,369,610.69 | 7.76% | -0.12% |
According to regionDomestic
6,912,387,260.07
71.98%
| 6,912,387,260.07 |
4,457,906,168.90
65.60%
55.06%
Foreign 2,690,372,085.22
28.02%
2,337,954,568.09
34.40%
15.07%
(5)About the industries, products, or regions accounting for over 10% of the company’s operating income
or operating profit
√ Applicable □ Not applicable
In RMB
Operation revenue Operation cost
Gross profitratio
Increase/decreaseof operationrevenue y-o-y
Increase/decreaseof operation cost
y-o-y
Increase/decrease of grossprofit ratio y-o-yAccording to industriesManufacture ofhouseholdappliances
| 9,076,019,575.56 | 7,709,772,571.05 |
15.05%
44.79%
46.90%
-1.22%
| According to products | ||
Refrigerator, freezer
| 4,083,961,202.33 | 3,333,608,452.02 |
18.37%
39.82%
40.20%
-0.23%
Air-conditioning
| 3,958,753,350.50 | 3,540,481,498.57 |
10.57%
52.50%
57.54%
-2.86%
| Small appliance and |
kitchen & toilet
| 571,948,185.39 | 474,186,822.18 |
17.09%
11.54%
11.18%
0.26%
According to regionDomestic
| 6,392,384,758.43 | 5,212,930,284.17 |
18.45%
62.37%
60.35%
1.03%
Foreign
| 2,683,634,817.13 | 2,496,842,286.88 |
6.96%
15.10%
25.00%
-7.37%
Under circumstances of adjustment in reporting period for statistic scope of main business data, adjusted mainbusiness based on latest one year’s scope of period-end
□ Applicable √ Not applicable
(6) Reasons for y-o-y relevant data with over 30% changes
√ Applicable □ Not applicable
Refrigerator, freezer, AC products and the operation revenue and costs from China has increased on a y-o-y basis,mainly due to the impact of COVID-19 epidemic at same period last year.IV. Analysis of the non-main business
√ Applicable □Not applicable
In RMBAmount
Ratio intotal profit
Note
sustainable
(Y/N)Investment income
| Whether be | ||
| 52,533,705.90 |
56.62%
The delivery earnings from forward foreign exchange contract in theperiod
N
| Gains/losses from |
change of fair value
-
-10.49%
| 9,731,654.29 |
Loss from fair value changes of the forward foreign exchange contract
N
Asset impairment -
43,310,366.42
-46.68%
| 43,310,366.42 |
Accrual of the loss on decline in value of inventories NNon-operating income
6.32%
| 5,862,320.71 |
NNon-operating expense
0.82%
| 760,592.62 |
N
| Other income | 57,250,100.93 | 61.70% | Government subsidy received in the period | N |
Credit impairment loss -
-16.30%
| 15,121,003.89 |
Accrual of the credit impairment loss on account receivable in the
period
NV. Analysis of assets and liability
(1) Major changes of assets composition
In RMB
| End of current period | Year-end of last year |
Ratiochanges
Notes of major changesAmount
total assets
Amount
Monetary fund
| Ratio in total assets | ||
| 5,310,519,267.78 |
31.45%
| 6,594,786,789.98 |
40.95%
-9.50%
The net cash flow from operation, investmentand financing activities declined in the period
Account receivable
| 2,546,059,071.18 |
15.08%
| 1,130,275,780.66 |
7.02%
8.06%
Due to the increase of operation revenue inthe periodInventory
13.54%
| 2,285,488,785.06 | 1,715,354,951.43 |
10.65%
2.89%
| Due to the increase in inventory production in |
the periodInvestment real estate
0.32%
| 54,108,683.17 | 53,888,462.00 |
0.33%
-0.01%
No major changesLong-term equityinvestment
0.35%
| 59,080,517.76 | 76,982,822.38 |
0.48%
-0.13%
No major changesFix assets
13.92%
| 2,350,222,653.32 | 2,391,859,440.31 |
14.85%
-0.93%
No major changesConstruction inprogress
0.42%
| 70,466,482.26 | 60,775,088.96 |
0.38%
0.04%
No major changesRight-of-use assets
0.12%
| 20,282,488.32 |
Due to the implementation of new lease
standards in the periodShort-term loans
5.15%
| 869,283,195.68 | 1,336,209,050.55 |
8.30%
-3.15%
Due to the repayment of short-term loans in
the periodContractual liability
2.04%
| 344,400,472.19 | 522,550,891.28 |
3.24%
-1.20%
Received in advance from customers declined
in the period
| Long-term loans | 178,000,000.00 | 1.05% | 188,231,439.30 | 1.17% | -0.12% | No major changes |
Lease liability
0.07%
| 12,529,575.32 | Due to the implementation of new lease |
standards in the period
(2) Main overseas assets
√ Applicable □ Not applicable
Content of assets
Reason for
theformat
ion
Asset size Location
Operat
ionmode
Control measure to ensure the security
of assets
Income (RMB)
| Foreign assets |
accounted fornet assets ofthe Company
exist
| significant |
impairme
nt risk(Y/N)
Ruba Trading Company
| 60% equity of Changhong | Invest |
mentestabli
US$ 7.803million
Pakistan Sales
Details of risks control measures
-1,362,646.63
| have been disclosed by the Company by way |
-0.02%
N
shmen
t
| shmen | of announcement on appointed media |
(No. 2011-028, No. 2011-032,
2014-023, No. 2014-026, No. 2016-0
| 27, |
No. 2016-032, No. 2017-053 and
2017-059) on
| 28 May 2011, 19 April 2014, 25 March 2016 and 10 August |
2017
Company(Private)Ltd.
Investmentestablishment
US$ 6.9761million
Pakistan
Manufacture
| 40% equity of Changhong Ruba Electric |
Details of risks control measures
of announcement
| on appointed media |
(No. 2011-028, No. 2011-032,
2014-023, No. 2014-026, No. 2017-0
| 53 |
and No. 2017-059) on
April 2014 and 10 August 2017
236,565.85
| 28 May 2011, 19 |
-0.06%
N
100% equity ofCHANGHONGMEILING ELECTRICINDONESIA. PT
Investmentestablishment
US$ 6million
KELAPAGADING,JKT,Indonesia
Sales
| Details of risks control measures have been disclosed by the Company by way |
of announcement
(No. 2016-027 and No. 2016-033) on
| 25 |
March 2016
-1,370,349.45
0.44%
N
100% equity of CH-
(Philippines) Inc.
| Meiling International | Invest |
mentestablishment
US$ 1million
Philippines
Sales
Details of risks control measures
of announcement
| on appointed media |
(No. 2019-083) on 7 December 2019.
-351,217.75
0.11%
N
| Other notes | N/A |
(3) Assets and liability measured by fair value
√Applicable □ Not applicable
In RMB
Items
Amount at the
Changes of fairvaluegains/losses in
this period
| beginning period | Accumulat |
ive
fair valuereckoned
| into equity |
Devaluatio
n ofwithdrawin
g in theperiod
Amount ofpurchase in the
period
Sales in the
period
Other changes
Amount at end of
the periodFinancial assets
1.Trading financial
assets (derivativefinancial assetsexcluded)
-
| 47,242,339.07 | 11,569,560.58 | 1,420,000,000.00 | 700,000,000.00 | 755,672,778.49 | ||||
| Receivable financing | 1,632,388,702.83 | -499,921,133.85 | 1,132,467,568.98 | |||||
| Other non-current |
financial assets
| 548,148,931.34 | 548,148,931.34 |
Subtotal of financialassets
-
| 2,227,779,973.24 | 11,569,560.58 | 1,420,000,000.00 | 700,000,000.00 |
-
| 499,921,133.85 | 2,436,289,278.81 |
Above total
2,227,779,973.24
-
| 2,227,779,973.24 | 11,569,560.58 | 1,420,000,000.00 | 700,000,000.00 |
-
| 499,921,133.85 | 2,436,289,278.81 |
Financial liabilities
-
| 4,584,076.51 | 1,837,906.29 | 2,746,170.22 |
Other changes:
Other changes in the receivable financing were that the notes receivables that both aimed at collecting contractual cash flow(collection) and selling (endorsed or discounted) during the current period declined.
Whether there have major changes on measurement attributes for main assets of the Company in report period ornot
□Yes √ No
(4) Assets right restricted ended as reporting period
Ended as the reporting period, the Company has no major assets been closed down, detain, freeze or pledge andguarantee. As for other assets have restriction on rights found more in relevant content of “59. Assets withrestricted ownership or use rights” in “VI. Note of consolidate financial statement” carried under Section X.Financial ReportVI. Investment analysis
(1) Overall situation
√Applicable □ Not applicable
Investment in the reporting (RMB)
Investment in the same period of last year
( RMB)
Changes
| 45,000,000.00 | 155,280,049.17 | -71.02% |
(2) The major equity investment obtained in the reporting period
√Applicable □ Not applicable
In RMB
Name ofinvested
Principal business
Method ofinvestmentAmount ofinvestment
Shareholding ratio
Capitalsource
sPartners
Termofinvestment
Type ofproducts
Status as ofthe balancesheet date
Expect
edreturn
Currentinvestmentprofit and loss
Whet
herinvolvedin alawsuit(Y
/N)
Date ofdisclosure (if
applicable)
Index ofdisclosure (ifapplicable)
HefeiChanghong MeilingLife
Appliances
Co., Ltd.
| Appliances | Research and development, and sales of household |
electrical appliances, non-
appliances, gas cookers, gas water heaters, wall-
| mounted gas furnace, instantaneous electric water |
heater (wall-m
furniture, audio-
| visual equipment, radio and television equipment, computers, communications |
and other electronic devices,
Enterprise manag
| ement consulting services; sales of category II & III medical devices; Import and export of goods or technologies (except those prohibited by the state or involving administrative |
approval).
establi
shed
35,000,000
| Newly |
70%
Ownfund
NingboHonglingEnterpriseManagementPartnershi
| p (Limited |
Partnership)
Long-term
R&D andsales ofhouseholdappliances,kitchen
small homeappliances
Contributedinvestmentof 35
| appliances and | million yuan in the period |
Notapplicable
12,159,618.63
N
2020-12-12
JuchaoWebsite:
http://www.cninfo.com.cn(Notice No.:
2020-097)
AnhuiLing'anMedical
Equipment
Co., Ltd.note 1
Production of category I
| Equipment | medical devices; sales of category I medical devices; sales of category II medical devices; Software development; (in addition to licensing business, the company can independently operate the projects not prohibited or |
restricted by laws and regulations
approval by relevant departments)
| ) Licensed projects: Production of category III medical devices; Production of category II medical devices; Operation of category III medical devices (for projects subject to approval according to law, business activities can be carried out only after | Newly |
establi
shed
10,000,000
| 63.2683% |
Ownfund
N/A
Long-term
R&D,productionand sales ofmedicaldevices
Contributedinvestmentof 10
Notapplicable
-1,594.36
| million yuan in the period |
N
2021-3-03
JuchaoWebsite:
http://www.cninfo.com.cn(Notice No.:
2021-008)
Total -- -- -- -- -- -- -- -- -- -- 12,158,024.27
-- -- --Note 1: After the deliberation and approval of the 5
thmeeting of the tenth board of directors of the company, it was agreed that the company's subsidiary company Zhongke Meiling invested 10million yuan to invest in the establishment of a wholly-owned subsidiary Anhui Ling'an Medical Equipment Co., Ltd. The Company holds 63.2683% equity of Zhongke Meiling, so theCompany indirectly holds 63.2683% equity of Anhui Ling'an Medical Equipment Co., Ltd.
(3)The material non-equity investment in the reporting period
√Applicable □ Not applicable
In RMBProjectName
InvestmentMetho
d
Investedwith fixed
assets(Y/N)
Industryinvolved
inInvestm
entProjects
| Investment Amount |
in this ReportingPeriod
Accrued ActualInvestment Amount
up to the End of
Reporting Period
Capita
lSource
Project Schedule
Anticipated
Income
RealizedIncome up to
the End of
Reporting
Period
Reasons for not Reaching thePlanned Schedule and
Anticipated Income
Disclosed Date
(if any)
Disclosed Index (if
any)Productionbase projectof annual
Self-built
Y
Manufacture ofhousehol
19,418,148.19
| Accrued | ||
94,904,042.29
Fund-raising
”Productionbase project ofannual output of
Approximately -49,500,000
| The production capacity of one million sets of | During the reporting period, due to the impact of the capacity climbing and |
2019-7-9; 2019-7-26
http://www.cninfo.co
| m.cn (Notice |
output of 2
millionwashingmachines(Phase II)
| output of 2 | d |
appliancesindustry
washingmachines(PhaseII) ” has massproductionalready. Up to
| now, the balance |
is still in theprocess ofpayment.
washing
| machine shall be formed after this project being put into |
operation
| yuan | COVID-19 pandemic, the company product sales and and the rise in prices of bulk materials, depreciation and amortization, etc., the project |
incurred a loss in the
reporting period.
| No.:2019-040, 2019- |
041, 2019-
2019-043 and 2019-047)
Total -- -- -- 19,418,148.19
| 042, | ||
94,904,042.29
-- -- -- -- -- -- --Note 1: In order to further improve the efficiency of the company’s use of raised funds, after careful study and demonstration, the 24
th session of the 9
th board of directors, the 13
thsession of the
th
board of supervisors, and the resolution of the second extraordinary general meeting of shareholders in 2019 approved and agreed that the company shall change the unused raised funds of120 million yuan from the sub-project Freezer Intelligent Construction Project of the "Intelligent Manufacturing Construction Project" and put into the "Production base project of annual outputof 2 million washing machines(Phase II) ". Currently, the second phase of the project ( roller production line) has been formally put into operation.
(4)Financial assets investment
1. Securities investment
□ Applicable √ Not applicable
The Company had no securities investment in the reporting period.
2. Derivative investment
√Applicable □Not applicable
In 10 thousand Yuan
Operator
Relatedrelationship
Whetherrelated trade
or not(Y/N)
Type Initial investmentStart date End date
Investmentamount atperiod-begin
Amount
| purchased in the reporting |
period
Amount sales
in thereporting
period
reserve fordevaluation
of
| withdrawing |
(ifapplicable)
Investmentamount atperiod-end
investmentamount atperiod-end innet assets ofthe Companyat period-end
Actualgains/loss
es in
period
| Ratio of | ||
| Financial |
institution
N/A N
| Forward foreign |
exchange contract
334,471.07
2020-4-27 2021-12-31 184,610.32
246,253.80
235,179.18
-
186,993.75
39.11%
6,756.44
Total 334,471.07
-- -- 184,610.32
246,253.80
235,179.18
-
186,993.75
39.11%
6,756.44
Capital resource Own fundLawsuit involved (if applicable) Not applicable
investment of derivatives (if applicable)
2021-3-31
| Disclosure date for approval from the Board for |
| Disclosure date for approval from board of |
shareholders for investment of derivatives
applicable)
2021-4-29
Risk analysis
| (if |
| and controlling measures for derivatives holdings in the Period (including but not limited to market risk, liquidity risk, credit risks, operation risk |
and law risks etc.)
Risk analysis:
1. Market risk: domestic and international economic situation chang
are under certain market risk. Forward foreign exchange business is aiming to reducing impact on corporate profits by foreign
| exchange settlement |
and sale prices, exchange rat
business, relying on the research of the foreign currency exchange rates, combined with prediction of consignments, and burdening ability t
| o price |
variations due to exchange rate fluctuations, then determine the plan of forward foreign exchange contracts, and make dynamic
business, to ensure reasonable profit level.
2. Liquidity risk: all foreign exchange transactions are b
| ased on a reasonable estimate of the future import and export business, to meet the |
requirements of the trade authenticity. In addition, forward foreign exchange transactions are processed with bank credit, wi
company funds.
3. Bank default risk: if cooperative banks collapse within the contract time, the Company will not be able to transact the or
| iginal foreign exchange |
contracts with contract price, which leads the risk of income uncertainty. So the Company chose five state-owned banks, the Chinese-
shareholding enterprise as Everbright Bank, Industrial Bank and the foreign-
| funded banks as UOB, OCBC, BEA etc. to conduct the trading of foreign |
exchange capital. These banks share a solid strength and management whose failure and the risk of loss may bring to the Company is very low.
4. Operational risk: improper operation of the person in charge of forward foreign exchange transactions may cause related ri
has formulated related management system which defines the operation process and responsibility to prevent and control risks.
5. The legal risks: unclear terms based in contract signed with banks for related transactions may lead legal risks when forw
| ard foreign exchange |
transactions are processing. The Company will strengthen legal review, and choose good bank to carry out this kind of business as to risk control.
fair value of der
| ivatives, disclosed specific applied methods and correlation assumption and parameter |
setting
The Company determines fair value in accordance with the Chapter VII “Determination of Fair Value” carried in the Accounting
Business Enterprises No.22 - Recognition and Measurement of Financial Instruments. Fair-
| value is basically obtained according to prices offered by |
bank and other pricing services. While fair-value of derivatives is mainly obtained according to the balance between prices given by
contracts and forward prices given by contracts signed during the reporting period with bank. The differences are identified
| as trading financial assets |
and liabilities. During the reporting period, forward foreign exchange contracts and losses of the Company is 67.5644 million Yuan.
last period in aspect of major changes
Not applicable
Special opinion on derivative investment and riskcontrol by independent directors
Upon inspection, the Company believes that: during the reporting period, the Company carried out its foreign exchange forwar
| Specific principle of the accounting policy and calculation for derivatives in the Period compared with | |
| d deals in strict |
compliance with the Standardized Operation Guidelines for Listed Company issued by Shenzhen Stock Exchange, the Articles of Association
Authorization Management of the Company, Management System in relating to Foreign Exchange Forward Deals of Hefei Meiling Co., Ltd.
| , and |
these deals were conducted within the authorization scope under general meeting and board meeting.
transactions on the purpose of getting profit only, all of the forward foreign exchange transactions are operates closely rel
| ated to the routine operation |
requirement of the Com
avoiding the preventing the risks in exchange rate. The forward foreign exchange transactions of the Company are beneficial to prevent the e
| xchange |
risks exposed by import and export business and thus met its requirement for operation development. There was no speculative
relevant rules and regulations and relevant business was conducted under corresponding decision-making procedures. Interests of the Company and
entire shareholders, especially minority shareholders, were not prejudiced.VII. Sales of major assets and equity
(1) Sales of major assets
□ Applicable √ Not applicable
The Company had no sales of major assets in the reporting period.
(2) Sales of major equity
□ Applicable √ Not applicable
VIII. Analysis of main holding company and stock-jointly companies
√ Applicable □ Not applicable
(1) Particular about main subsidiaries and stock-jointly companies net profit over 10%
In RMB
relevant rules and regulations and relevant business was conducted under corresponding decision-making procedures. Interests of the Company and
Company name
| Company name | Type | Main business | Register capital | Total assets | Net assets | Operation revenue | Operation profit | Net profit |
Zhongke Meiling Cryogenic TechnologyCo., Ltd.
Subsidiary
| Research and development, |
manufacturing and sales of ultra-low temperature freezer
72,548,200
562,891,255.98
| 234,817,848.15 |
271,384,729.79
62,997,212.48
51,828,122.35
| Jiangxi Meiling Electric Appliance Co., |
Ltd.
Subsidiary
| Manufacturing of refrigeration and |
freezer
50,000,000
289,684,133.15
| 125,693,195.59 |
408,914,804.45
6,787,452.84
6,787,852.84
| Mianyang Meiling Refrigeration Co., Ltd. | Subsidiary | Manufacturing of refrigeration and | 100,000,000 | 183,176,328.15 | 116,053,418.10 | 157,036,940.68 | -5,594,294.21 | -5,434,748.98 |
freezer
| freezer | ||
| Sichuan Changhong Air-conditioner Co., |
Ltd.
Subsidiary
| R&D, manufacturing and domestic |
sales of air-conditioning
850,000,000
3,999,238,014.59
| 1,097,804,096.05 |
2,825,810,636.77
9,585,636.92
8,601,022.12
Zhongshan Changhong Electric Co., Ltd. Subsidiary
| R&D, manufacturing and foreign |
sales of air-conditioning
334,000,000
1,525,527,289.36
| 83,934,524.48 |
1,418,924,411.44
-35,801,547.60
-36,002,458.45
| Hefei Meiling Group Holdings Limited | Subsidiary | Sales of white goods | 80,000,000 | 1,751,871,144.29 | -189,481,653.04 | 2,705,878,293.96 | -51,345,734.38 | -50,867,994.49 |
Changhong Meiling Ridian TechnologyCo., Ltd.
Subsidiary
| R&D, manufacturing and sales of kitchen and toilet products, small |
home appliances and water purifier
83,000,000
346,311,165.19
| 132,442,908.47 |
152,108,811.31
-1,864,874.26
-
Hefei Changhong Meiling LifeAppliances Co., Ltd.
Subsidiary
| 2,059,812.01 | |||
| R&D and sales of household appliances, kitchen appliances and |
small home appliances etc.
50,000,000
317,064,609.76
| 67,370,883.75 |
486,144,189.56
23,101,170.19
17,370,883.75
(2) Subsidiary obtained and disposed in the period
√Applicable □ Not applicable
Company name
The method of obtainingand disposing subsidiaries
during the report period
The influence to the whole production and performance
Anhui Ling'an MedicalEquipment Co., Ltd
Investment establishment
| The method of obtaining and disposing subsidiaries | |
| The controlling subsidiary of the Company, it was established by the subsidiary of the |
Company- Zhongke Meiling with registered capital of 10 milli
on yuan. The company wasestablished to further expand business scope in the biomedical filed for Zhongke Meiling,to further develop its business in the life science segment and to enhance the Zhongke
Meiling’s core competitiveness.
(3) Description of the holding company and stock-jointly companies
The Company has no important holding company and stock jointly companies that need to disclosed in the periodIX. Structured entity controlled by the Company
□Applicable √ Not applicable
X. Risks and countermeasures
(1) risks and countermeasures
In the second half of 2021, domestic home appliance market demand is under pressure, while exports are affectedby transportation costs and market factors. The company will face operational risks such as severe industryconditions, increased competition, rising costs, global and domestic fluctuations and repetitions of COVID-19pandemic.
1. Macroeconomic risks
The fluctuations and repetitions of COVID-19 pandemic have had a negative impact on the global and domesticeconomic situation. If there are major fluctuations in the global economy, the growth of domestic and foreignmacro economy or consumer demand will slow down, which will have a certain impact on the consumer demand,production and sales of the company's products and businesses.
2. Raw material price fluctuation risks
The raw materials of the company's main products are black and white materials, steel, copper, aluminum and soon, but affected by the pandemic, their prices rose continuously from May last year to the high level in the firsthalf of this year. The company's profit stress is increased by the continuous rise of production costs.
3. Impact of cross-border Internet industry and challenges of new business model
With the arrival of Internet era and artificial intelligence era, the Internet enterprises continue to cross boarder andswarm into intelligent home fields, which intensifies competition in the industry, subversive changes may occur atany time, and traditional household appliance enterprises are facing serious challenges.
4. Risk of price fluctuations in international transport
Affected by the pandemic and the growing international demand for raw materials such as iron ore, container andshipping capacity is strained, resulting in the rise of international transportation costs, which will have an impacton the company's export business.In view of the above risks, combined with the industry situation in the second half of the year and the shortage inthe first half of the year, in the second half of 2021, the company will seize the opportunity, turn the crisis into anopportunity, and implement the business plan from the following aspects (ii).
(2)Operation plan for second half of the year
Under strategic planning, the company will continue to take "one side two points" as the guiding ideology, outputthe online and offline competition strategy and product strategy matching with the market, implement themanagement policy of "market driven, product leadership, efficiency breakthrough, team activation", andimplement business plan from the following aspects.
1. Refrigerator and freezer industry
In the domestic market, adhere to the "three main line" to promote the work. Take the customer as the center,provide unique value products to consumers, strengthen the good quality and hot sale products, and enhanceproduct competitiveness through new products upgrades, and the appearance, performance experience and qualityof M Fresh second generation, fresh, all clean, mother and infant series products, especially the launch of“uniform temperature partial freezing” new product in July will effectively enhance the competitiveness of thecompany's products. We will continue to promote marketing transformation, on the basis of whole-channelcoordination, offline channels are focused on transformation and realizing ten thousand yuan breakthroughs of MFresh products, focus on the scale of single product with high gross margin, and centre on the quantity of medium-end products; while online channels focus on upgrading structure, and strengthening attack to increase grossmargin. Promote the "benchmarking" around the whole value chain, focus on the market, supply chain,manufacturing, foaming process, logistics and other aspects to narrow the gap with the benchmark, and improvethe overall operational efficiency.In the overseas market, continue to focus on products, focus on markets, and focus on customers. Continue tooptimize product structure, strengthen the adaptability of product research and development to different regions;sort out the strategies to core markets and core customers, and strengthen the ability to respond to differentmarkets; actively find and open fast transport channels, increase brand teams and product investment, andcontinuously promote overseas independent brand building.
2. Air-conditioning industry
In the domestic market, focus on "strengthening ability, consolidating foundation, increasing benefits", reach scaleto improve structure, improve profit or loss; expand channels and promote special projects, consolidatefoundation; promote new products to activate terminal, improve capacity; standardize operation management,reduce costs and improve efficiency. In terms of overseas markets, adhere to the brand priority, stick to the onlineincline and customer focus, take efficiency improvement as the starting point, reduce costs, stabilize quality, andimprove service capacity.
3. Washing machine industry
In the second half of the year, washing machine industry will adhere to the "good quality" + "hot sale" productstrategy, and build the "thin", "large", "simple" industry business card. For good quality products, enrich theproduct lines mainly through the layout in clothes dryer products and the launch of new high-box pulsator unit,and improve product competitiveness from the appearance, cost performance, experience, and quality. For hot saleproducts, lay out e-commerce 2C products and product integration scan code payment product requirements byreducing costs, and expand the scale of washing machines. At the same time, relying on the self-produced washingmachine to lay out overseas business, expand ODM/OEM customers, and achieve rapid breakthroughs in Meilingwashing machine scale.
4. Kitchen, bathroom and small household appliances industry
Focus on building water ecological appliances and brand with influential operation services, and expand theindustry influence. Be result-oriented, consolidate the foundation, take the initiative to meet the change, lead theproduct to win with innovative thinking. Build the core product line, promote omni-channel marketing work,strengthen self-management ability, and achieve scale breakthrough by stabilizing transformation results,dislocating competition, playing the brand effect, etc.
5. Bio-pharmaceutical
We will unswervingly implement the development strategy of "related diversification based on bio-medical field",and continue to promote product innovation, research and development, quality improvement, deeply developchannels of domestic life science market, and improve services by centering on the three business strategies of lifescience, smart cold chain and family health. For overseas market, focus on blank market development, andpromote scale growth. Relying on the life science channel system, the company has steadily promoted theextension of smart cold chain business to professional logistics, medicine, chemical industry and other fields. Atthe same time, it has promoted the launch of new products such as atomizer, a family health product, to promotethe company's scale growth.
Section IV. Corporate GovernanceI. AGM(Annual General Meeting) and extraordinary general meeting
1. AGM held in the period
Meeting Type
Participation ratio
for investors
| Participation ratio | Holding date | Disclosure |
date
Resolution2020 AGM
Annual generalmeeting
31.5421%
2021-4-28 2021-4-29
| Deliberated and approved the 21 proposes including “Report on the Work of BOD for year of 2020”, found |
more in the (Notice No.: 2021-
Website www.cninfo.com.cnFirst ExtraordinaryGeneral Meeting of2021
ExtraordinaryGeneral Meeting
| 034) released on Juchao | ||
4.7757%
2021-6-16 2021-6-17
| Deliberated and approved the “proposal on termination of the assets purchase and related transactions”, found |
more in the (Notice No.: 2021-
Website www.cninfo.com.cnSecond ExtraordinaryGeneral Meeting of2021
ExtraordinaryGeneral Meeting
| 046) released on Juchao | ||
31.3097%
2021-7-28 2021-7-29
| Deliberated and approved the 2 proposes including “proposal to purchase the liability insurance for directors, supervisors and senior executives”, found more in the |
(Notice No.: 2021-058) released on Juchao Webs
www.cninfo.com.cn
(2) Request for extraordinary general meeting by preferred stockholders with rights to vote
□ Applicable √ Not applicable
II. Changes of directors, supervisors and senior executives
√ Applicable □ Not applicable
iteName
| Name | Title | Type | Date | Reasons |
Tang Youdao Deputy president Appointment 2021-3-29
as the deputy president of the Company
| , with service term same as the |
thBODSun Hongying Staff supervisor Be elected 2021-3-30
th
| employee representative meeting, Ms. Sun Hongying was elected as |
the employee supervisor of the 10
thboard of supervisors.Zhu Wenjie
securitiesrepresentative
Outgoing 2021-3-30
| Staff supervisor, | Mr. Zhu Wenjie applied for resignation as the staff supervisor of 10th board of supervisors and securities representative of the Company for |
personal reasons.
III. Profit distribution plan and capitalizing of common reserves in the period
□ Applicable √ Not applicable
There are no cash dividend, bonus and capitalizing of common reserves carried out in the semi-annualIV. Implementation of the company’s stock incentive plan, employee stock ownership plan or other
employee incentives
□ Applicable √ Not applicable
The Company has no implementation of the company’s stock incentive plan, employee stock ownership plan orother employee incentives in the period.
Section V. Environmental and Social ResponsibilityI. Material environmental protectionThe listed Company and its subsidiary whether belong to the key sewage units released from environmental protection department:
√ Yes □ No
Name ofcompany orsubsidiary
Major pollutantsand name of typicalpollutants
Way ofdischarge
number
ofdischarge outlets
Distribution of discharge outlets
concentrationof discharge
Pollutants discharge standards
enacted
Totaldischarge
volume
Total discharge volume
certified
Dischar
gebeyondthestandard
s
SichuanChanghongAir-conditionerCo., Ltd.
| Dischar | ||
| VOC (volatile |
organic compounds)
Organizedemissions
Two outlets at J05 workshop and
City
≤12.3mg/m3
"Sichuan Province Fixed
| one outlet at J07 workshop, No 128, Sanjiang Road, Economic Development Zone, Mianyang | Pollution Source Air Volatile Organic Compound Emission |
Standard DB51/2377-2017"Table 3 standard requirements,
compounds <60mg/m3.
2343.65kg
Sichuan Changhong Air-conditioner Co., Ltd. has
| that is, volatile organic | completed the pollutant | |
discharge registration on
management information
| platform and obtained |
the registration receipt in
Notexceede
d
Nitrogen oxides
Organizedemissions
accordance with the"Pollution PermitManagement Measures(Trial)", the "FixedPollution Source
Two outlets at J05 workshop (itbelongs to the same output asJ05VOC), No 128, SanjiangRoad, Economic Development
Zone, Mianyang City
＜3mg/m3
| Two outlets at J05 workshop (it belongs to the same output as J05VOC), No 128, Sanjiang Road, Economic Development | "Comprehensive Emission Standard of Air Pollutants |
GB16297-
requirements, that i
| s, the |
concentration of nitrogen oxides<240 mg/m3
268.05kg
Notexceeded
Sulfur dioxide
Organizedemissions
Two outlets at J05 workshop (itbelongs to the same output asJ05VOC), No 128, SanjiangRoad, Economic Development
Zone, Mianyang City
＜3mg/m3
| Two outlets at J05 workshop (it belongs to the same output as J05VOC), No 128, Sanjiang Road, Economic Development | "Comprehensive Emission Standard of Air Pollutants |
GB16297-
SO2<120 mg/m3
268.05kg
| 1996" Table 2 requirements, that is, the | Pollution Permit | |
Classification
there is no requirementfor the company's total
| emissions in the pollution discharge |
registration
Notexceede
d
Particulate matter
Organizedemissions
Two outlets at J05 workshop and
City
≤1.7mg/m3
| one outlet at J07 workshop, No 128, Sanjiang Road, Economic Development Zone, Mianyang | "Comprehensive Emission Standard of Air Pollutants |
GB16297-
co
| ncentration of particulate |
matter <120 mg/m3
461.25kg
Notexceede
d
Note : In 2021, Bureau of Ecology and Environment of Mianyang issued the "Notice on the List of Key Pollutant Discharge Units in 2021", and included Sichuan Changhong Air-conditionerCo., Ltd. in the list of key soil pollution supervision.
1. Construction and operation of pollution prevention facilities
The Company and its subsidiaries actively respond to the national ecological civilization construction plan, andactively participate in national environmental protection works in line with the purpose of actively fulfilling itscorporate social responsibility. In recent years, The Company and its subsidiaries have actively explored theintroduction of advanced management concepts and methods, and invested a large amount of money in thepurchase of pollution control equipment and facilities. And realized emission reduction by scientific technicalmethods by the investment in installation of activated carbon adsorption treatment equipment, welding dustpurifier facilities etc. At the same time, in order to ensure the effective operation of the management equipmentand facilities, the Company and its subsidiaries have adopted such management measures as setting up specialpersonnel to manage and maintain the operation of the equipment and facilities, formulating proper rules foroperation and maintenance of the equipment and facilities, emergency disposal regulations, supervision andassessment mechanism, allocating special maintenance funds and so on, so as to ensure the effective operation ofthe governing facilities in a full round, delivering its best to protect and improve the ecological environmentaround the enterprise.
2. Environment impact assessment and other required environment protection administrative license for
construction projectsThe Company and its subsidiaries earnestly implement the Environmental Protection Law, the EnvironmentalImpact Assessment Law and the Regulations on Environmental Protection Management of Construction Projects,consciously abide by environmental protection laws and regulations, industry requirements and governmentregulations. For new, renovated and expanded projects, the Company and its subsidiaries adhere to the projectenvironmental impact assessment and "three simultaneous" system, fully implement environmental protectionmeasures, act well in environment protection management in respect of project planning, design, construction andoperation, make full use of advanced crafts and technological means to reduce environmental pollution.Environmental impact assessment is carried out synchronously while making the feasibility study for aconstruction project. Third-party professional parties are engaged to analyze the industrial policy, land useplanning, environmental impact and the feasibility of environmental protection measures of the project.Construction will be started only after approved by the competent environmental protection authorities. Duringthe construction, environmental protection requirements are earnestly implemented, environmental protectionfacilities are built synchronously, environmental protection acceptance of the project is arranged in time uponcompletion of the project to ensure that the project meets the acceptance criteria and could be put into officialoperation with all the environmental impact assessment requirements met. During the operation period, theCompany conducts pollution prevention to ensure the normal operation of environmental protection facilities instrict compliance with the relevant environmental impact assessment documents and the reply requirements of thecompetent environmental protection authorities.
3. Emergency plan for environmental emergencies
The Company and its subsidiaries have set up related emergency plans for environmental emergencies. The
Company and its subsidiaries have determined classified warning based on the different extent and severity ofenvironmental impacts that may be caused by the material environmental factors, defined the responsibilities foremergency response, regulated emergency handling procedures, established special team to handle emergenciesand organized regular rehearsal and appraisal of relevant emergency plans, so as to ensure the effectiveness ofthese plans, improve their capability of emergency handling and take precautions against contingent emergencies.
4. Independent plan to monitor environment
The Company and its subsidiaries have established regular monitoring plan for environmental pollutants, set upspecial funds for pollutants monitoring, and engaged third-party authoritative to regularly monitor the operation ofmajor pollution-production links and environmental protection treatment facilities in connection with the majorpollutants produced by the Company and its subsidiaries, to make sure that the Company and its subsidiariescould achieve emission standards in a full round.
5.Administrative penalties imposed for environmental issues during the reporting period
The Company and its subsidiaries strictly comply with the relevant national and regional environmental protectionlaws and regulations, relying on the ISO14001 system to establish and improve the internal environmentalmanagement system, timely update the adaptive laws and regulations and related industry requirements, and takethe initiative to fulfill corporate social responsibility, laying a solid foundation for the company's complianceoperations. During the reporting period, the Company and its subsidiaries did not receive any administrativepunishment due to environmental problems.
6. Other environment information that should be disclosed
According to the Measures for Environmental Information Disclosure of Enterprises and Public Institutions, theCompany and its subsidiaries have achieved public work for information on environmental impact assessment onconstruction projects, project acceptance inspection, production pollution discharge, solid waste management,important environmental factors and their environmental objectives and performances.
7. Other environment related information
In order to further realize the scientific and systematic environmental protection work of the Company and itssubsidiaries, the Company and its subsidiaries have established an environmental management system inaccordance with ISO14001 standards, set up an environmental protection organization, acquired environmentalprotection resources, regularly identified, updated and appraised environmental factors, compliance obligations,environmental risks and opportunities, and regularly determined environmental objectives and managementprograms. Through the implementation of management programs and continuous normal improvement, theenvironmental performance of the Company and its subsidiaries has been continuously improved. Through regularinternal audit and management review, as well as the verification and examination of the third parties, theenvironmental management system of the Company and its subsidiaries has been effectively controlled and fullymeets the system management standards and relevant regulations.
II. Social responsibilityDuring the reporting period, the Company did not carry out poverty alleviation and rural revitalization work forthe time being.
Section VI. Important EventsI. Commitments that the actual controller, shareholders, related party, the buyer and the company havefulfilled during the reporting period and have not yet fulfilled by the end of reporting period
□ Applicable √Not applicable
The Company has no commitments that the actual controller, shareholders, related party, the buyer and thecompany have fulfilled during the reporting period and have not yet fulfilled by the end of reporting periodII. Non-operational fund occupation from controlling shareholders and its related party
□Applicable √ Not applicable
No non-operational fund occupation from controlling shareholders and its related party in period.III. Guarantee outside against the regulation
□Applicable √Not applicable
No guarantee outside against the regulation in Period.IV. Appointment and non-reappointment (dismissal) of CPAWhether the semi-annual financial report had been audited
□Yes √ No
The semi-annual report was not auditedV. Explanation on “Qualified Opinion” from CPA by the Board and Supervisory Committee
□ Applicable √ Not applicable
VI. Explanation from the Board for “Qualified Opinion” of last year’s
□ Applicable √ Not applicable
VII. Bankruptcy reorganization
□ Applicable √ Not applicable
No bankruptcy reorganization for the Company in reporting periodVIII. Lawsuit
(1) Significant lawsuits and arbitration
□ Applicable √ Not applicable
No significant lawsuits or arbitration occurred in the reporting period.
(2) Other lawsuits
√Applicable □ Not applicable
To maintain the independence and integrity of "Meiling" trademark and trade name, the Company carried outserials of lawsuits, attribution and administration suits with “Meiling” trademark and corporate name concerned.Up to now, in view of the infringement to the Company’s "Meiling" trademark and trade name, false propagandaand unfair competition in the market, the Company has carried out many ways including administrative reports,criminal investigation and civil litigation to fight against infringement and counterfeiting behavior in the wholecountry in order to stopped the infringing behavior.IX. Penalty and rectification
√Applicable □Not applicable
Name Type Causes
Investigation
penalty type
| Investigation | Conclusions (if any) | Disclosure |
date
Disclosure indexZhongkeMeilingCryogenicTechnologyCo., Ltd.
Other
department; the YC-
| 395EL (2) type equipment did not apply for registration changes with the original registration |
department
competentauthorities
| Investigated by | Zhongke Meiling was ordered to immediately correct the violations and was given a forfeiture of 456,500 yuan in |
total
2021-7-16
(Notice No.: 2021-056)
| released on |
Juchao Website
Correction description:
√Applicable □Not applicable
After receiving the on-site inspection by Anhui Drug Administration, Zhongke Meiling has fully recognized theproblem that it did not timely record and register changes in accordance with the relevant provisions of theRegulations on Supervision and Administration of Medical Devices, and rectified the corresponding problems inthe first time. Zhongke Meiling recalled the involved products in time in accordance with the "ManagementMeasures for Recall of Medical Devices", and immediately sealed samples of the recalled products and sent themto an authoritative third party for performance and safety tests. After inspection, the products met therequirements. Up to now, Zhongke Meiling has completed the registration change of the above products.
At the same time, the company and the subsidiaries will profoundly summarize the lessons of this administrativepunishment, strictly abide by relevant laws and regulations, and further enhance the standardization operationlevel, so as to eliminate such incidents again.X. Integrity of the company and its controlling shareholders and actual controllers
√Applicable □Not applicable
During the reporting period, the Company and the controlling shareholders and the actual controllers have hadgood reputation, and there is no failure to fulfill the obligations determined by effective legal documents of thecourt, nor large amount of debt outstanding at maturity etc.XI. Major related party transaction
(1) Related party transaction with routine operation concerned
√Applicable □ Not applicable
1. Related party transaction with routine operation concerned
Serial
Relatedparty
Relationship
Type ofrelatedtransaction
Content ofrelatedtransaction
Pricingprinciple
Relatedtransaction price(in 10thousandYuan)
Relatedtransactionamount (in
thousandYuan)
Proportion
insimila
rtransactions
(%)
Trading
limitapproved (in 10thousand Yuan)
Whethe
r over
theapprove
dlimitedor not(Y/N)
Clearingform forrelatedtransactio
n
Availa
blesimila
rmark
etprice
Date ofdisclosure
Index of disclosure
SichuanChanghongElectric Co.,Ltd.
Controllingshareholderand ultimatecontroller
Commoditypurchased
R-three-terminal
voltage regulator,integratedcircuits, R-insulated gatebipolartransistors, steelplates, plasticparts etc.
Marketing
price
31,287.06 31,287.06 3.74% 60,000
| R-three-terminal |
N
Spotexchange,
Bankacceptanc
e
-
12 Dec. 2020;30 Dec. 2020
Juchao Website(www.cninfo.com.cn) No.: 2020-097,2020-099, 2020-107
ChanghongHuayiCompressorCo., Ltd.
enterprisecontrolunder thesamecontrollingshareholderand ultimatecontroller
Commoditypurchased
Compressor,Door seal
Marketingprice
25,353.49 25,353.49 3.03% 63,000
| Other |
N
Bankacceptance
-
12 Dec. 2020;30 Dec. 2020
Juchao Website(www.cninfo.com.cn) No.: 2020-097,2020-099, 2020-107
SichuanChanghongMold PlasticTech. Co.,Ltd.
Otherenterprisecontrolunder thesamecontrollingshareholderand ultimatecontroller
Commoditypurchased
Door liners,
drawers,refrigeratorcomponents,
| hinge covers, |
door trim, electric
swing leaf plasticparts, travel cases,spray mops, etc.
Marketingprice
47,151.73 47, 151.73 5.64% 120,000
| control box covers, chassis, |
N
Spotexchange,Bankacceptance
-12 Dec. 2020;30 Dec. 2020
Juchao Website(www.cninfo.com.cn) No.: 2020-097,2020-099, 2020-107
SichuanChanghongJijia FineCo., Ltd.
enterprisecontrolunder thesamecontrollingshareholderand ultimatecontroller
Commoditypurchased
| Other | Base plate assembly, door trim, support plate, door |
assembly support,
metal parts, etc.
Marketing
price
24,414.33 24,414.33 2.92% 60,000
| pressure plate, bracket, sheet |
N
Spotexchange,
Bankacceptanc
e
-
12 Dec. 2020;30 Dec. 2020
Juchao Website(www.cninfo.com.cn) No.: 2020-097,2020-099, 2020-107
SichuanChanghongPackagePrintingCo., Ltd.
enterprisecontrolunder thesamecontrollingshareholderand ultimatecontroller
Commoditypurchased
Packing boxes,foam,dimensional spareparts, labels, bagsand cartons.
Marketing
price
6,913.07 6,913.07 0.83% 18,000
| Other |
N
Bankacceptanc
e
-
12 Dec. 2020;30 Dec. 2020
Juchao Website(www.cninfo.com.cn) No.: 2020-097,2020-099, 2020-107
SichuanChanghongPrecisionElectronicsTech. Co.,Ltd.
Other
enterprisecontrolunder thesamecontrollingshareholderand ultimatecontroller
Commoditypurchased
Printed boardmachine insertionmachine pasteassembly
Marketingprice
1,291.84 1,291.84 0.15% 5,000
| Other |
N
Bankacceptance
-
12 Dec. 2020;30 Dec. 2020
Juchao Website(www.cninfo.com.cn) No.: 2020-097,2020-099, 2020-107
ElectronicGroup Co.,Ltd.
enterprisecontrolunder thesamecontrollingshareholderand ultimatecontroller
Commoditypurchased
Powertransformers
Marketingprice
4.95 4.95 0.00% 13,000
| Other |
N
Bankacceptanc
e
-
12 Dec. 2020;30 Dec. 2020
Juchao Website(www.cninfo.com.cn) No.: 2020-097,2020-099, 2020-107
GuangdongChanghongElectronicsCo., Ltd.
enterprisecontrolunder thesamecontrollingshareholderand ultimatecontroller
Commoditypurchased
Foam and carton
Marketing
price
254.71 254.71 0.03% 13,000
| Other |
N
Spotexchange,
Bankacceptanc
e
-12 Dec. 2020;30 Dec. 2020
Juchao Website(www.cninfo.com.cn) No.: 2020-097,2020-099, 2020-107
ChanghongIntelligent
| Sichuan | Other |
enterprisecontrol
ditypurchas
Circuit boards
Marketing
price
1.77 1.77 0.00% 7,000
| Commo |
N
Cashsettlement
-
12 Dec. 2020;30 Dec. 2020
(www.cninfo.com.cn) No.: 2020-097,
Manufacturi
ngTechnologyCo., Ltd.
| Manufacturi | under the |
samecontrollingshareholderand ultimatecontroller
| ed | 2020-099, 2020-107 |
HefeiChanghongIndustrialCo., Ltd.
enterprisecontrolunder thesamecontrollingshareholderand ultimatecontroller
Commoditypurchased
| Other | Control board, |
inverter
humidity sensor
Marketing
price
293.88 293.88 0.04% 13,000
| integrated board, power cord, temperature and |
N
Bankacceptanc
e
-
12 Dec. 2020;30 Dec. 2020
Juchao Website(www.cninfo.com.cn) No.: 2020-097,2020-099, 2020-107
SichuanChanghongNew EnergyTechnologyCo., Ltd.
enterprisecontrolunder thesamecontrollingshareholderand ultimatecontroller
Commoditypurchased
Coin cell batteries
Marketingprice
0.96 0.96 0.00% 8,000
| Other |
N
Cashsettlement
-
12 Dec. 2020;30 Dec. 2020
Juchao Website(www.cninfo.com.cn) No.: 2020-097,2020-099, 2020-107
SichuanZhiyijiaNetworkTechnologyCo., Ltd.
enterprisecontrolunder thesamecontrolling
Commoditypurchased
Displays, AC andfreezers
Marketing
price
625.8 625.8 0.07% 13,000
| Other |
N
Cashsettlement
-
12 Dec. 2020;30 Dec. 2020
Juchao Website(www.cninfo.com.cn) No.: 2020-097,2020-099, 2020-107
shareholder
and ultimatecontroller
ChanghongInternational Holdings(HongKong) Co.,Ltd.
| shareholder |
| Other |
enterprisecontrolunder thesamecontrollingshareholderand ultimatecontroller
Commoditypurchased
Television
Marketingprice
672.2 672.2 0.08% 10,000
N
Cashsettlement
-
12 Dec. 2020;30 Dec. 2020
Juchao Website(www.cninfo.com.cn) No.: 2020-097,2020-099, 2020-107
SichuanChanghongElectronicProductsCo., Ltd.
| Other |
enterprisecontrolunder thesamecontrollingshareholderand ultimatecontroller
Commoditypurchased
Speechcomponents forR&D
Marketing
price
1,797.64 1,797.64 0.21% 6,000
N
Spotexchange,
Bankacceptanc
e
-
12 Dec. 2020;30 Dec. 2020
Juchao Website(www.cninfo.com.cn) No.: 2020-097,2020-099, 2020-107
SichuanAilianScience &TechnologyCo., Ltd.
| Other |
enterprisecontrolunder thesamecontrollingshareholderand ultimatecontroller
Commoditypurchased
humidity sensor
Marketingprice
1,934.07 1,934.07 0.23% 6,000
| WiFi module, temperature and |
N
Bankacceptance
-
12 Dec. 2020;30 Dec. 2020
Juchao Website(www.cninfo.com.cn) No.: 2020-097,2020-099, 2020-107
SichuanAichuangScience &TechnologyCo., Ltd.
Other
enterprisecontrolunder thesamecontrollingshareholderand ultimatecontroller
Commoditypurchased
Inverter
| Other | integrated board, control board, display board, wifi module and |
R-IC LNK6664V
Marketingprice
5,848.84 5,848.84 0.70% 15,000
N
Bankacceptance
-12 Dec. 2020;30 Dec. 2020
Juchao Website(www.cninfo.com.cn) No.: 2020-097,2020-099, 2020-107
HunanGrand-ProIntelligentTech.Company
| Other |
enterprisecontrolunder thesamecontrollingshareholderand ultimatecontroller
Commoditypurchased
Floor moppingrobot
Marketing
price
75.66 75.66 0.01% 1,500
N
Spotexchange,
Bankacceptanc
e
-
12 Dec. 2020;30 Dec. 2020
Juchao Website(www.cninfo.com.cn) No.: 2020-097,2020-099, 2020-107
ZhongshanGuanghongMouldingTechnologyCo., Ltd.
| Other |
enterprisecontrolunder thesamecontrollingshareholderand ultimatecontroller
Commoditypurchased
Plastic pressedparts and spraymop
Marketing
price
77.26 77.26 0.01% 13,000
N
Spotexchange,
Bankacceptanc
e
-
12 Dec. 2020;30 Dec. 2020
Juchao Website(www.cninfo.com.cn) No.: 2020-097,2020-099, 2020-107
| Sichuan |
ChanghongElectronics
shareholderand ultimate
| Controlling | Accept |
laborservice
Shuttletransportation fee
Marketing
price
41 41 0.06% 8,000
N
Cashsettlement
-
12 Dec. 2020;30 Dec. 2020
| Juchao Website |
(www.cninfo.com.cn) No.: 2020-097,
Holding
Group Co.,Ltd.
| Holding | controller | 2020-099, 2020-107 |
SichuanChanghongElectric Co.,Ltd.
Controllingshareholderand ultimatecontroller
Acceptlaborservice
fees and technicalservice fees
Marketingprice
184.87 184.87 0.25% 5,600
| Training fees, software usage fees, inspection and certification |
N
Cashsettlement
-
12 Dec. 2020;30 Dec. 2020
Juchao Website(www.cninfo.com.cn) No.: 2020-097,2020-099, 2020-107
SichuanChanghongMinshengLogisticsCo., Ltd.
enterprisecontrolunder thesamecontrollingshareholderand ultimatecontroller
Acceptlaborservice
Storage,transportation andloading &unloading
Marketing
price
22,455.74 22,455.74
30.84
%
52,000
| Other |
N
Cashsettlement
-
12 Dec. 2020;30 Dec. 2020
Juchao Website(www.cninfo.com.cn) No.: 2020-097,2020-099, 2020-107
SichuanChanghongMold PlasticTech. Co.,Ltd.
enterprisecontrolunder thesamecontrollingshareholderand ultimatecontroller
Acceptlaborservice
Mold changes
Marketing
price
6.67 6.67 0.01% 5,600
| Other |
N
Cashsettlement
-
12 Dec. 2020;30 Dec. 2020
Juchao Website(www.cninfo.com.cn) No.: 2020-097,2020-099, 2020-107
ServiceExp.
| Sichuan | Other |
enterprisecontrol
laborservice
| Accept | Three packages, equipment repair, |
marketing
Marketing
price
9,349.91 9,349.91
12.84
%
35,000
N
Cashsettlement
-12 Dec. 2020;30 Dec. 2020
| Juchao Website |
(www.cninfo.com.cn) No.: 2020-097,
Appliance
ServiceChain Co.,Ltd.
| Appliance | under the |
samecontrollingshareholderand ultimatecontroller
conditioninginstallation, after-s
| ales service, finished goods |
transportation andmiscellaneousfees
SichuanHongxinSoftwareCo., Ltd.
| 2020-099, 2020-107 | ||
| Other |
enterprisecontrolunder thesamecontrollingshareholderand ultimatecontroller
Acceptlaborservice
informationservice fee
Marketing
price
62.78 62.78 0.09% 5,600
| Software usage fee and |
N
Cashsettlement
-
12 Dec. 2020;30 Dec. 2020
Juchao Website(www.cninfo.com.cn) No.: 2020-097,2020-099, 2020-107
GuangdongChanghongElectronicsCo., Ltd.
Otherenterprisecontrolunder thesamecontrollingshareholderand ultimatecontroller
Acceptlaborservice
fire protection fee
| and labor |
insurance fee
Marketing
price
38.13 38.13 0.05% 5,600
N
Cashsettlement
-
12 Dec. 2020;30 Dec. 2020
Juchao Website(www.cninfo.com.cn) No.: 2020-097,2020-099, 2020-107
| Sichuan |
JiahongIndustrial
enterprisecontrol
| Other | Accept |
laborservice
fee and greeningfees
Marketing
price
221.91 221.91 0.30% 8,000
| Working meals |
N
Cashsettlement
-
12 Dec. 2020;30 Dec. 2020
(www.cninfo.com.cn) No.: 2020-097,
Co., Ltd.
| Co., Ltd. | under the |
samecontrollingshareholderand ultimatecontroller
SichuanChanghongInternational Hotel Co.,Ltd.
| 2020-099, 2020-107 | ||
| Other |
enterprisecontrolunder thesamecontrollingshareholderand ultimatecontroller
Acceptlaborservice
accommodation
Marketingprice
1.48 1.48 0.00% 8,000
| Travel, meetings fee, working meals and |
N
Cashsettlement
-
12 Dec. 2020;30 Dec. 2020
Juchao Website(www.cninfo.com.cn) No.: 2020-097,2020-099, 2020-107
SichuanChanghongInternational TravelService Co.,Ltd.
enterprisecontrolunder thesamecontrollingshareholderand ultimatecontroller
Acceptlaborservice
Travel expenses
Marketing
price
23.18 23.18 0.03% 8,000
| Other |
N
Cashsettlement
-
12 Dec. 2020;30 Dec. 2020
Juchao Website(www.cninfo.com.cn) No.: 2020-097,2020-099, 2020-107
SichuanChanghongPropertyServicesCo., Ltd.
Otherenterprisecontrolunder thesamecontrolling
Acceptlaborservice
Dormitory facility
propertymanagement fees
Marketing
price
125.68 125.68 0.17% 8,000
| and equipment service fees, |
N
Cashsettlement
-
12 Dec. 2020;30 Dec. 2020
Juchao Website(www.cninfo.com.cn) No.: 2020-097,2020-099, 2020-107
shareholder
and ultimatecontroller
SichuanHongweiTechnologyCo., Ltd.
| shareholder |
| Other |
enterprisecontrolunder thesamecontrollingshareholderand ultimatecontroller
Acceptlaborservice
technicalcooperation fees
Marketingprice
163 163 0.22% 5,600
| Inspection & certification fees, |
N
Cashsettlement
-12 Dec. 2020;30 Dec. 2020
Juchao Website(www.cninfo.com.cn) No.: 2020-097,2020-099, 2020-107
SichuanZhiyijiaNetworkTechnologyCo., Ltd.
enterprisecontrolunder thesamecontrollingshareholderand ultimatecontroller
Acceptlaborservice
Marketing
| Other | support fees, advertising fees and operating |
expenses
Marketing
price
3.69 3.69 0.01% 5,600
N
Cashsettlement
-
12 Dec. 2020;30 Dec. 2020
Juchao Website(www.cninfo.com.cn) No.: 2020-097,2020-099, 2020-107
SichuanChanghongIntelligentManufacturingTechnologyCo., Ltd.
| Other |
enterprisecontrolunder thesamecontrollingshareholderand ultimatecontroller
Acceptlaborservice
Informationconsulting feesand equipmentrepair fees
Marketingprice
63.75 63.75 0.09% 7,000
N
Cashsettlement
-
12 Dec. 2020;30 Dec. 2020
Juchao Website(www.cninfo.com.cn) No.: 2020-097,2020-099, 2020-107
SichuanChanghongElectronicProductsCo., Ltd.
Other
enterprisecontrolunder thesamecontrollingshareholderand ultimatecontroller
Acceptlaborservice
Labor dispatchfee
Marketingprice
12.46 12.46 0.02% 5,600
| Other |
N
Cashsettlement
-
12 Dec. 2020;30 Dec. 2020
Juchao Website(www.cninfo.com.cn) No.: 2020-097,2020-099, 2020-107
SichuanAichuangScience &TechnologyCo., Ltd.
enterprisecontrolunder thesamecontrollingshareholderand ultimatecontroller
Acceptlaborservice
R&D test fees
Marketing
price
1.32 1.32 0.00% 15,000
| Other |
N
Cashsettlement
-
12 Dec. 2020;30 Dec. 2020
Juchao Website(www.cninfo.com.cn) No.: 2020-097,2020-099, 2020-107
ChanghongInternational Holdings(HongKong) Co.,Ltd.
enterprisecontrolunder thesamecontrollingshareholderand ultimatecontroller
Acceptlaborservice
Marketingsupports fees
Marketing
price
243.34 243.34 0.33% 5,600
| Other |
N
Cashsettlement
-
12 Dec. 2020;30 Dec. 2020
Juchao Website(www.cninfo.com.cn) No.: 2020-097,2020-099, 2020-107
ChanghongElectric Co.,
| Sichuan | Controlling |
shareholderand ultimate
e of fuelpower
Electricity, steam,water and energy
Marketing
price
1,048.48 1,048.48 0.13% 60,000
| Purchas |
N
Cashsettlement
-
12 Dec. 2020;30 Dec. 2020
(www.cninfo.com.cn) No.: 2020-097,
Ltd.
| Ltd. | controller | 2020-099, 2020-107 |
ChanghongHuayiCompressorCo., Ltd.
enterprisecontrolunder thesamecontrollingshareholderand ultimatecontroller
Purchase of fuelpower
Steam fees
Marketing
price
20.22 20.22 0.00% 150
| Other |
N
Cashsettlement
-
12 Dec. 2020;30 Dec. 2020
Juchao Website(www.cninfo.com.cn) No.: 2020-097,2020-099, 2020-107
GuangdongChanghongElectronicsCo., Ltd.
enterprisecontrolunder thesamecontrollingshareholderand ultimatecontroller
Purchase of fuelpower
Energy fees
Marketing
price
52.01 52.01 0.01% 13,000
| Other |
N
Cashsettlement
-
12 Dec. 2020;30 Dec. 2020
Juchao Website(www.cninfo.com.cn) No.: 2020-097,2020-099, 2020-107
HefeiChanghongNew EnergyTechnologyCo., Ltd.
enterprisecontrolunder thesamecontrollingshareholderand ultimatecontroller
Purchase of fuelpower
Electricity fees
Marketing
price
17.22 17.22 0.00% 13,000
| Other |
N
Cashsettlement
-
12 Dec. 2020;30 Dec. 2020
Juchao Website(www.cninfo.com.cn) No.: 2020-097,2020-099, 2020-107
SichuanChanghongPropertyServicesCo., Ltd.
Other
enterprisecontrolunder thesamecontrollingshareholderand ultimatecontroller
Purchase of fuelpower
Electricity fees
Marketingprice
1.26 1.26 0.00% 8,000
| Other |
N
Cashsettlement
-
12 Dec. 2020;30 Dec. 2020
Juchao Website(www.cninfo.com.cn) No.: 2020-097,2020-099, 2020-107
SichuanChanghongElectric Co.,Ltd.
Controllingshareholderand ultimatecontroller
Sales ofgoods
refrigerators,
| small appliances |
and suitcases
Marketing
price
318.89 318.89 0.04% 8,000
N
Spotexchange,
Bankacceptanc
e
-
12 Dec. 2020;30 Dec. 2020
Juchao Website(www.cninfo.com.cn) No.: 2020-097,2020-099, 2020-107
SichuanChanghongJijia FineCo., Ltd.
Otherenterprisecontrolunder thesamecontrollingshareholderand ultimatecontroller
Sales ofgoods
| Lower beams, brackets, base plates, color plates, materials processed on behalf of steel plates, water |
purifiers, etc.
Marketingprice
3,677.37 3,677.37 0.41% 8,000
N
Cashsettlement
-
12 Dec. 2020;30 Dec. 2020
Juchao Website(www.cninfo.com.cn) No.: 2020-097,2020-099, 2020-107
SichuanChanghongMold PlasticTech. Co.,Ltd.
Otherenterprisecontrolunder thesamecontrolling
Sales ofgoods
| Particles, fixed support seat, connecting tube, |
nut, GPPS plastic,
material
Marketing
price
13,068.52 13,068.52 1.44% 32,000
| high gloss raw |
N
Cashsettlement
-
12 Dec. 2020;30 Dec. 2020
Juchao Website(www.cninfo.com.cn) No.: 2020-097,2020-099, 2020-107
shareholder
and ultimatecontroller
| shareholder |
LejiayiChainManagement Co., Ltd.
enterprisecontrolunder thesamecontrollingshareholderand ultimatecontroller
Sales ofgoods
| Other | Air conditioner, |
Refrigerator,
appliances, etc.
Marketingprice
18.04 18.04 0.00% 15,000
| freezer, small |
N
Cashsettlement
-
12 Dec. 2020;30 Dec. 2020
Juchao Website(www.cninfo.com.cn) No.: 2020-097,2020-099, 2020-107
SichuanZhiyijiaNetworkTechnologyCo., Ltd.
enterprisecontrolunder thesamecontrollingshareholderand ultimatecontroller
Sales ofgoods
Washing
| Other | machine, air |
conditioner,Refrigerator,
heater, gas stove,etc.
Marketing
price
328,665.8
328,665.84
36.21
%
700,000
| freezer, water |
N
Spotexchange,
Bankacceptanc
e
-
12 Dec. 2020;30 Dec. 2020
Juchao Website(www.cninfo.com.cn) No.: 2020-097,2020-099, 2020-107
SichuanChanghongDeviceTechnologyCo., Ltd.
enterprisecontrolunder thesamecontrollingshareholderand ultimatecontroller
Sales ofgoods
Small appliances
Marketingprice
0.08 0.08 0.00% 15,000
| Other |
N
Cashsettlement
-
12 Dec. 2020;30 Dec. 2020
Juchao Website(www.cninfo.com.cn) No.: 2020-097,2020-099, 2020-107
SichuanChanghongMinshengLogisticsCo., Ltd.
Other
enterprisecontrolunder thesamecontrollingshareholderand ultimatecontroller
Sales ofgoods
| Other | Air conditioner, |
Refrigerator,
liner, etc.
Marketing
price
9.73 9.73 0.00% 15,000
| freezer, carton, |
N
Cashsettlement
-
12 Dec. 2020;30 Dec. 2020
Juchao Website(www.cninfo.com.cn) No.: 2020-097,2020-099, 2020-107
SichuanServiceExp.ApplianceServiceChain Co.,Ltd.
Otherenterprisecontrolunder thesamecontrollingshareholderand ultimatecontroller
Sales ofgoods
drawercomponents,seals, temperature
| sensors, control |
boards,temperaturecontroll
conditioners,maintenancespare parts, etc.
Marketing
price
293.76 293.76 0.03% 15,000
| ers, air |
N
Cashsettlement
-
12 Dec. 2020;30 Dec. 2020
Juchao Website(www.cninfo.com.cn) No.: 2020-097,2020-099, 2020-107
HefeiChanghongIndustrialCo., Ltd.
enterprisecontrolunder thesamecontrollingshareholderand ultimatecontroller
Sales ofgoods
Single chipmicrocomputeretc.
Marketing
price
7.89 7.89 0.00% 15,000
| Other |
N
Cashsettlement
-
12 Dec. 2020;30 Dec. 2020
Juchao Website(www.cninfo.com.cn) No.: 2020-097,2020-099, 2020-107
SichuanChanghongReal EstateCo., Ltd.
Other
enterprisecontrolunder thesamecontrollingshareholderand ultimatecontroller
Sales ofgoods
Small appliances
Marketingprice
1.96 1.96 0.00% 15,000
| Other |
N
Cashsettlement
-
12 Dec. 2020;30 Dec. 2020
Juchao Website(www.cninfo.com.cn) No.: 2020-097,2020-099, 2020-107
GuangdongChanghongElectronicsCo., Ltd.
enterprisecontrolunder thesamecontrollingshareholderand ultimatecontroller
Sales ofgoods
Air conditioner,small appliancesetc.
Marketing
price
10.62 10.62 0.00% 15,000
| Other |
N
Cashsettlement
-
12 Dec. 2020;30 Dec. 2020
Juchao Website(www.cninfo.com.cn) No.: 2020-097,2020-099, 2020-107
ElectronicGroup Co.,Ltd.
enterprisecontrolunder thesamecontrollingshareholderand ultimatecontroller
Sales ofgoods
Air conditioner
Marketing
price
0.08 0.08 0.00% 15,000
| Other |
N
Cashsettlement
-
12 Dec. 2020;30 Dec. 2020
Juchao Website(www.cninfo.com.cn) No.: 2020-097,2020-099, 2020-107
ChanghongElectronic
| Guangyuan | Other |
enterprisecontrol
Sales ofgoods
Air conditioner
Marketing
price
8.07 8.07 0.00% 15,000
N
Cashsettlement
-
12 Dec. 2020;30 Dec. 2020
| Juchao Website |
(www.cninfo.com.cn) No.: 2020-097,
Technology
Co., Ltd.
| Technology | under the |
samecontrollingshareholderand ultimatecontroller
PT.CHANGHONGELECTRICINDONESIA
| 2020-099, 2020-107 | ||
| Other |
enterprisecontrolunder thesamecontrollingshareholderand ultimatecontroller
Sales ofgoods
Air conditioner
Marketingprice
27.8 27.8 0.00% 15,000
N
Cashsettlement
-12 Dec. 2020;30 Dec. 2020
Juchao Website(www.cninfo.com.cn) No.: 2020-097,2020-099, 2020-107
CHANGHONG(HK)TRADINGLIMITED
| Other |
enterprisecontrolunder thesamecontrollingshareholderand ultimatecontroller
Sales ofgoods
Air conditioner
Marketing
price
13,687.72 13,687.72 1.51% 170,000
N
Cashsettlement
-
12 Dec. 2020;30 Dec. 2020
Juchao Website(www.cninfo.com.cn) No.: 2020-097,2020-099, 2020-107
CHANGHONGELECTRIC(AUSTRALIA)PTY.LTD.
| Other |
enterprisecontrolunder thesamecontrolling
Sales ofgoods
Refrigerator,freezer
Marketing
price
5,310.94 5,310.94 0.59% 170,000
N
Cashsettlement
-
12 Dec. 2020;30 Dec. 2020
Juchao Website(www.cninfo.com.cn) No.: 2020-097,2020-099, 2020-107
shareholder
and ultimatecontroller
Orion.PDP.Co.,ltd
| shareholder |
| Other |
enterprisecontrolunder thesamecontrollingshareholderand ultimatecontroller
Sales ofgoods
Refrigerator
Marketing
price
1,985.69 1,985.69 0.22% 4,500
N
Cashsettlement
-
12 Dec. 2020;30 Dec. 2020
Juchao Website(www.cninfo.com.cn) No.: 2020-097,2020-099, 2020-107
ChanghongEuropeElectric s.r.o
| Other |
enterprisecontrolunder thesamecontrollingshareholderand ultimatecontroller
Sales ofgoods
Refrigerator
Marketing
price
5,608.18 5,608.18 0.62% 8,000
N
Cashsettlement
-
12 Dec. 2020;30 Dec. 2020
Juchao Website(www.cninfo.com.cn) No.: 2020-097,2020-099, 2020-107
CHANGHONGELECTRICMIDDLEEASTFZCO
| Other |
enterprisecontrolunder thesamecontrollingshareholderand ultimatecontroller
Sales ofgoods
Refrigerator
Marketing
price
143.65 143.65 0.02% 15,000
N
Cashsettlement
-
12 Dec. 2020;30 Dec. 2020
Juchao Website(www.cninfo.com.cn) No.: 2020-097,2020-099, 2020-107
ChanghongInternational Holdings(HongKong) Co.,Ltd.
Other
enterprisecontrolunder thesamecontrollingshareholderand ultimatecontroller
Sales ofgoods
Refrigerator,freezer, airconditioner
Marketingprice
10,567.63 10,567.63 1.16% 35,000
| Other |
N
Cashsettlement
-
12 Dec. 2020;30 Dec. 2020
Juchao Website(www.cninfo.com.cn) No.: 2020-097,2020-099, 2020-107
SichuanAichuangScience &TechnologyCo., Ltd.
enterprisecontrolunder thesamecontrollingshareholderand ultimatecontroller
Sales ofgoods
Photocouplers,refrigerants,integratedcircuits, etc.
Marketing
price
16.47 16.47 0.00% 3,100
| Other |
N
Cashsettlement
-
12 Dec. 2020;30 Dec. 2020
Juchao Website(www.cninfo.com.cn) No.: 2020-097,2020-099, 2020-107
MianyangLeyijiaTradeingChain Co.,Ltd.
enterprisecontrolunder thesamecontrollingshareholderand ultimatecontroller
Sales ofgoods
Small appliances
Marketing
price
9.25 9.25 0.00% 15,000
| Other |
N
Cashsettlement
-
12 Dec. 2020;30 Dec. 2020
Juchao Website(www.cninfo.com.cn) No.: 2020-097,2020-099, 2020-107
ChanghongElectronics
| Sichuan | Controlling |
shareholderand ultimate
gservices
Labor cost
Marketingprice
-1.08 -1.08
-
0.11%
3,100
| Providin |
N
Cashsettlement
-
12 Dec. 2020;30 Dec. 2020
(www.cninfo.com.cn) No.: 2020-097,
Holding
Group Co.,Ltd.
| Holding | controller | 2020-099, 2020-107 |
SichuanChanghongMold PlasticTech. Co.,Ltd.
enterprisecontrolunder thesamecontrollingshareholderand ultimatecontroller
Providingservices
Labor cost
Marketing
price
8.78 8.78 0.93% 5,600
| Other |
N
Cashsettlement
-
12 Dec. 2020;30 Dec. 2020
Juchao Website(www.cninfo.com.cn) No.: 2020-097,2020-099, 2020-107
SichuanChanghongJijia FineCo., Ltd.
enterprisecontrolunder thesamecontrollingshareholderand ultimatecontroller
Providingservices
Labor cost
Marketing
price
9.48 9.48 1.00% 5,600
| Other |
N
Cashsettlement
-
12 Dec. 2020;30 Dec. 2020
Juchao Website(www.cninfo.com.cn) No.: 2020-097,2020-099, 2020-107
SichuanAichuangScience &TechnologyCo., Ltd.
enterprisecontrolunder thesamecontrollingshareholderand ultimatecontroller
Providingservices
Technical servicefee, labor cost
Marketing
price
25.41 25.41 2.69% 3,100
| Other |
N
Cashsettlement
-
12 Dec. 2020;30 Dec. 2020
Juchao Website(www.cninfo.com.cn) No.: 2020-097,2020-099, 2020-107
SichuanZhiyijiaNetworkTechnologyCo., Ltd.
Other
enterprisecontrolunder thesamecontrollingshareholderand ultimatecontroller
Providingservices
Service fee
Marketingprice
1.26 1.26 0.13% 5,600
| Other |
N
Cashsettlement
-12 Dec. 2020;30 Dec. 2020
Juchao Website(www.cninfo.com.cn) No.: 2020-097,2020-099, 2020-107
ChanghongElectric Co.,Ltd.
| Sichuan | Controlling |
shareholderand ultimatecontroller
Providingservices
Labor cost
Marketing
price
-9.06 -9.06
-
0.96%
5,600
N
Cashsettlement
-
12 Dec. 2020;30 Dec. 2020
| Juchao Website |
(www.cninfo.com.cn) No.: 2020-097,2020-099, 2020-107
SichuanChanghongNetworkTechnologyCo., Ltd.
enterprisecontrolunder thesamecontrollingshareholderand ultimatecontroller
Providingservices
Labor cost
Marketing
price
-3.41 -3.41
-
0.36%
5,600
| Other |
N
Cashsettlement
-
12 Dec. 2020;30 Dec. 2020
Juchao Website(www.cninfo.com.cn) No.: 2020-097,2020-099, 2020-107
SichuanHuafengEnterpriseGroup Co.,Ltd.
enterprisecontrolunder thesamecontrollingshareholderand ultimate
Providingservices
Systemdevelopmentservice fee
Marketing
price
1.32 1.32 0.14% 3,100
| Other |
N
Cashsettlement
-
12 Dec. 2020;30 Dec. 2020
Juchao Website(www.cninfo.com.cn) No.: 2020-097,2020-099, 2020-107
controller
SichuanChanghongMinshengLogisticsCo., Ltd.
| controller |
| Other |
enterprisecontrolunder thesamecontrollingshareholderand ultimatecontroller
Providingservices
Forklift service、Labor cost
Marketing
price
19.00 19.00 2.01% 5,600
N
Cashsettlement
-12 Dec. 2020;30 Dec. 2020
Juchao Website(www.cninfo.com.cn) No.: 2020-097,2020-099, 2020-107
ElectronicGroup Co.,Ltd.
| Other |
enterprisecontrolunder thesamecontrollingshareholderand ultimatecontroller
Providingservices
Maintenance fee
Marketing
price
4.72 4.72 0.50% 5,600
N
Cashsettlement
-
12 Dec. 2020;30 Dec. 2020
Juchao Website(www.cninfo.com.cn) No.: 2020-097,2020-099, 2020-107
SichuanChanghongElectronicProductsCo., Ltd.
| Other |
enterprisecontrolunder thesamecontrollingshareholderand ultimatecontroller
Providingservices
Labor cost
Marketing
price
1.1 1.1 0.12% 5,600
N
Cashsettlement
-
12 Dec. 2020;30 Dec. 2020
Juchao Website(www.cninfo.com.cn) No.: 2020-097,2020-099, 2020-107
SichuanHongweiTechnologyCo., Ltd.
Other
enterprisecontrolunder thesamecontrollingshareholderand ultimatecontroller
Providingservices
Service fee
Marketingprice
0.14 0.14 0.01% 5,600
| Other |
N
Cashsettlement
-12 Dec. 2020;30 Dec. 2020
Juchao Website(www.cninfo.com.cn) No.: 2020-097,2020-099, 2020-107
GuangdongChanghongElectronicsCo., Ltd.
enterprisecontrolunder thesamecontrollingshareholderand ultimatecontroller
Providingservices
Labor cost
Marketing
price
11.64 11.64 1.23% 5,600
| Other |
N
Cashsettlement
-
12 Dec. 2020;30 Dec. 2020
Juchao Website(www.cninfo.com.cn) No.: 2020-097,2020-099, 2020-107
SichuanChanghongPrecisionElectronicsTech. Co.,Ltd.
enterprisecontrolunder thesamecontrollingshareholderand ultimatecontroller
Providingservices
Labor cost
Marketing
price
0.64 0.64 0.07% 5,600
| Other |
N
Cashsettlement
-
12 Dec. 2020;30 Dec. 2020
Juchao Website(www.cninfo.com.cn) No.: 2020-097,2020-099, 2020-107
ChanghongGerun
| Sichuan | Other |
enterprisecontrol
gservices
Labor cost
Marketing
price
0.94 0.94 0.10% 3,100
| Providin |
N
Cashsettlement
-
12 Dec. 2020;30 Dec. 2020
(www.cninfo.com.cn) No.: 2020-097,
Environmen
talProtectionTech. Co.,Ltd.
| Environmen | under the |
samecontrollingshareholderand ultimatecontroller
GuangdongChanghongElectronicsCo., Ltd.
| 2020-099, 2020-107 | ||
| Other |
enterprisecontrolunder thesamecontrollingshareholderand ultimatecontroller
Providefuelpower
Water fee,electricity feesand energy fees
Marketingprice
0.54 0.54 0.00% 15,000
N
Cashsettlement
-
12 Dec. 2020;30 Dec. 2020
Juchao Website(www.cninfo.com.cn) No.: 2020-097,2020-099, 2020-107
SichuanChanghongMinshengLogisticsCo., Ltd.
| Other |
enterprisecontrolunder thesamecontrollingshareholderand ultimatecontroller
Providefuelpower
Water fee,electricity feesand energy fees
Marketing
price
2.8 2.8 0.00% 15,000
N
Cashsettlement
-
12 Dec. 2020;30 Dec. 2020
Juchao Website(www.cninfo.com.cn) No.: 2020-097,2020-099, 2020-107
SichuanChanghongJijia FineCo., Ltd.
| Other |
enterprisecontrolunder thesamecontrolling
Providefuelpower
Water fee,electricity fees
Marketing
price
7.7 7.7 0.00% 15,000
N
Cashsettlement
-
12 Dec. 2020;30 Dec. 2020
Juchao Website(www.cninfo.com.cn) No.: 2020-097,2020-099, 2020-107
shareholder
and ultimatecontroller
SichuanChanghongMold PlasticTech. Co.,Ltd.
| shareholder |
| Other |
enterprisecontrolunder thesamecontrollingshareholderand ultimatecontroller
Providefuelpower
Water fee,electricity fees,steam fee
Marketingprice
351.05 351.05 0.04% 15,000
N
Cashsettlement
-
12 Dec. 2020;30 Dec. 2020
Juchao Website(www.cninfo.com.cn) No.: 2020-097,2020-099, 2020-107
SichuanZhiyijiaNetworkTechnologyCo., Ltd.
| Other |
enterprisecontrolunder thesamecontrollingshareholderand ultimatecontroller
Providefuelpower
Water fee,electricity fees
Marketing
price
2.5 2.5 0.00% 15,000
N
Cashsettlement
-
12 Dec. 2020;30 Dec. 2020
Juchao Website(www.cninfo.com.cn) No.: 2020-097,2020-099, 2020-107
SichuanChanghongPrecisionElectronicsTech. Co.,Ltd.
| Other |
enterprisecontrolunder thesamecontrollingshareholderand ultimatecontroller
Providefuelpower
Water fee,electricity fees
Marketing
price
0.52 0.52 0.00% 15,000
N
Cashsettlement
-12 Dec. 2020;30 Dec. 2020
Juchao Website(www.cninfo.com.cn) No.: 2020-097,2020-099, 2020-107
SichuanChanghongDeviceTechnologyCo., Ltd.
Other
enterprisecontrolunder thesamecontrollingshareholderand ultimatecontroller
Providefuelpower
Water fee,electricity feesand energy fees
Marketingprice
31.09 31.09 0.00% 15,000
| Other |
N
Cashsettlement
-
12 Dec. 2020;30 Dec. 2020
Juchao Website(www.cninfo.com.cn) No.: 2020-097,2020-099, 2020-107
ChanghongInternational Holdings(HongKong) Co.,Ltd.
enterprisecontrolunder thesamecontrollingshareholderand ultimatecontroller
Providefuelpower
Water fee,electricity fees
Marketing
price
2.32 2.32 0.00% 15,000
| Other |
N
Cashsettlement
-
12 Dec. 2020;30 Dec. 2020
Juchao Website(www.cninfo.com.cn) No.: 2020-097,2020-099, 2020-107
GuangdongChanghongElectronicsCo., Ltd.
enterprisecontrolunder thesamecontrollingshareholderand ultimatecontroller
Rent totherelatedparty
Office building
for rent
Marketing
price
2.25 2.25 0.03% 5,000
| Other |
N
Cashsettlement
-
12 Dec. 2020;30 Dec. 2020
Juchao Website(www.cninfo.com.cn) No.: 2020-097,2020-099, 2020-107
HefeiChanghongIndustrial
Otherenterprisecontrol
Rent totherelated
warehouses,forklifts for rent
Marketing
price
12.56 12.56 0.15% 5,000
| Apartments , |
N
Cashsettlement
-
12 Dec. 2020;30 Dec. 2020
Juchao Website(www.cninfo.com.cn) No.: 2020-097,
Co., Ltd.
| Co., Ltd. | under the |
samecontrollingshareholderand ultimatecontroller
| party | 2020-099, 2020-107 |
SichuanAichuangScience &TechnologyCo., Ltd.
enterprisecontrolunder thesamecontrollingshareholderand ultimatecontroller
Rent totherelatedparty
Warehouse forrent
Marketingprice
1.88 1.88 0.02% 3,100
| Other |
N
Cashsettlement
-
12 Dec. 2020;30 Dec. 2020
Juchao Website(www.cninfo.com.cn) No.: 2020-097,2020-099, 2020-107
SichuanAilianScience &TechnologyCo., Ltd.
enterprisecontrolunder thesamecontrollingshareholderand ultimatecontroller
Rent totherelatedparty
Warehouse forrent
Marketing
price
0.1 0.1 0.00% 3,100
| Other |
N
Cashsettlement
-
12 Dec. 2020;30 Dec. 2020
Juchao Website(www.cninfo.com.cn) No.: 2020-097,2020-099, 2020-107
SichuanHongweiTechnologyCo., Ltd.
enterprisecontrolunder thesamecontrolling
Rent totherelatedparty
Lease of factory
Marketing
price
4.73 4.73 0.06% 5,000
| Other |
N
Cashsettlement
-12 Dec. 2020;30 Dec. 2020
Juchao Website(www.cninfo.com.cn) No.: 2020-097,2020-099, 2020-107
shareholder
and ultimatecontroller
SichuanServiceExp.ApplianceServiceChain Co.,Ltd.
| shareholder |
| Other |
enterprisecontrolunder thesamecontrollingshareholderand ultimatecontroller
Rent totherelatedparty
Apartment,forklift for rent
Marketingprice
8.16 8.16 0.10% 5,000
N
Cashsettlement
-
12 Dec. 2020;30 Dec. 2020
Juchao Website(www.cninfo.com.cn) No.: 2020-097,2020-099, 2020-107
| Sichuan |
ChanghongElectric Co.,Ltd.
shareholderand ultimatecontroller
| Controlling | Rent to |
therelatedparty
Lease of factory
Marketing
price
48.15 48.15 0.59% 5,000
N
Cashsettlement
-
12 Dec. 2020;30 Dec. 2020
| Juchao Website |
(www.cninfo.com.cn) No.: 2020-097,2020-099, 2020-107
SichuanChanghongJijia FineCo., Ltd.
enterprisecontrolunder thesamecontrollingshareholderand ultimatecontroller
Rent totherelatedparty
Warehouse,apartment,forklift, plant andequipment forrent
Marketing
price
261.89 261.89 3.22% 5,000
| Other |
N
Cashsettlement
-
12 Dec. 2020;30 Dec. 2020
Juchao Website(www.cninfo.com.cn) No.: 2020-097,2020-099, 2020-107
ChanghongPrecisionElectronicsTech. Co.,
| Sichuan | Other |
enterprisecontrolunder thesame
Rent totherelatedparty
Apartment and2/F living area forrent
Marketing
price
4.26 4.26 0.05% 5,000
N
Cashsettlement
-
12 Dec. 2020;30 Dec. 2020
Juchao Website(www.cninfo.com.cn) No.: 2020-097,2020-099, 2020-107
Ltd.
| Ltd. | controlling |
shareholderand ultimatecontroller
SichuanChanghongMinshengLogisticsCo., Ltd.
enterprisecontrolunder thesamecontrollingshareholderand ultimatecontroller
Rent totherelatedparty
Rental ofapartments,offices,warehouses,office buildingspartially rented,factory buildings
Marketingprice
91.38 91.38 1.12% 5,000
| Other |
N
Cashsettlement
-
12 Dec. 2020;30 Dec. 2020
Juchao Website(www.cninfo.com.cn) No.: 2020-097,2020-099, 2020-107
SichuanChanghongMold PlasticTech. Co.,Ltd.
enterprisecontrolunder thesamecontrollingshareholderand ultimatecontroller
Rent totherelatedparty
| Other | Rental of |
apartments,warehouses,plants,equipment,
living quarters
Marketing
price
445.81 445.81 5.49% 5,000
| second floor |
N
Cashsettlement
-
12 Dec. 2020;30 Dec. 2020
Juchao Website(www.cninfo.com.cn) No.: 2020-097,2020-099, 2020-107
SichuanChanghongDeviceTechnologyCo., Ltd.
enterprisecontrolunder thesamecontrollingshareholderand ultimate
Rent totherelatedparty
Rental of 2/Fliving quartersand plants
Marketing
price
109.1 109.1 1.34% 5,000
| Other |
N
Cashsettlement
-
12 Dec. 2020;30 Dec. 2020
Juchao Website(www.cninfo.com.cn) No.: 2020-097,2020-099, 2020-107
controller
SichuanZhiyijiaNetworkTechnologyCo., Ltd.
| controller |
| Other |
enterprisecontrolunder thesamecontrollingshareholderand ultimatecontroller
Rent totherelatedparty
Rental ofapartments
Marketingprice
9.9 9.9 0.12% 5,000
N
Cashsettlement
-12 Dec. 2020;30 Dec. 2020
Juchao Website(www.cninfo.com.cn) No.: 2020-097,2020-099, 2020-107
GuangdongChanghongElectronicsCo., Ltd.
| Other |
enterprisecontrolunder thesamecontrollingshareholderand ultimatecontroller
Leasingfromrelatedparty
Lease of staffdormitory, plant
Marketing
price
78.89 78.89 0.97% 5,000
N
Cashsettlement
-
12 Dec. 2020;30 Dec. 2020
Juchao Website(www.cninfo.com.cn) No.: 2020-097,2020-099, 2020-107
| Sichuan |
ChanghongElectric Co.,Ltd.
shareholderand ultimatecontroller
| Controlling | Leasing |
fromrelatedparty
Lease of plant
Marketing
price
163.07 163.07 2.01% 5,000
N
Cashsettlement
-
12 Dec. 2020;30 Dec. 2020
| Juchao Website |
(www.cninfo.com.cn) No.: 2020-097,2020-099, 2020-107
ChanghongElectronicsHoldingGroup Co.,
Controllingshareholderand ultimatecontroller
Leasingfromrelatedparty
Lease of staffdormitory
Marketing
price
10.58 10.58 0.13% 8,000
| Sichuan |
N
Cashsettlement
-
12 Dec. 2020;30 Dec. 2020
Juchao Website(www.cninfo.com.cn) No.: 2020-097,2020-099, 2020-107
Ltd.
ElectronicGroup Co.,Ltd.
| Ltd. | |
| Other |
enterprisecontrolunder thesamecontrollingshareholderand ultimatecontroller
Purchase andconstruction offixedassets
Plant construction
Marketingprice
105.84 105.84 0.76% 10,000
N
Cashsettlement
-
12 Dec. 2020;30 Dec. 2020
Juchao Website(www.cninfo.com.cn) No.: 2020-097,2020-099, 2020-107
SichuanHongchengConstructionEngineeringCo., Ltd.
| Other |
enterprisecontrolunder thesamecontrollingshareholderand ultimatecontroller
Purchase andconstruction offixedassets
Engineeringmanagement ofthe plantconstruction
Marketing
price
195.02 195.02 1.41% 8,000
N
Cashsettlement
-
12 Dec. 2020;30 Dec. 2020
Juchao Website(www.cninfo.com.cn) No.: 2020-097,2020-099, 2020-107
SichuanHongxinSoftwareCo., Ltd.
| Other |
enterprisecontrolunder thesamecontrollingshareholderand ultimatecontroller
Purchase ofintangible assets
Software
Marketing
price
14.15 14.15 0.10% 10,000
N
Cashsettlement
-12 Dec. 2020;30 Dec. 2020
Juchao Website(www.cninfo.com.cn) No.: 2020-097,2020-099, 2020-107
SichuanHuanyuIndustrialCo., Ltd.
Other
enterprisecontrolunder thesamecontrollingshareholderand ultimatecontroller
Purchase andconstruction offixedassets
Plant construction
Marketingprice
36.7 36.7 0.27% 8,000
| Other |
N
Cashsettlement
-
12 Dec. 2020;30 Dec. 2020
Juchao Website(www.cninfo.com.cn) No.: 2020-097,2020-099, 2020-107
SichuanChanghongElectric Co.,Ltd.
Controllingshareholderand ultimatecontroller
e andconstruction offixedassets
| Purchas | Fire fighting renovation, low voltage cabinet |
renovation
Marketing
price
0.56 0.56 0.00% 10,000
N
Cashsettlement
-
12 Dec. 2020;30 Dec. 2020
Juchao Website(www.cninfo.com.cn) No.: 2020-097,2020-099, 2020-107
SichuanChanghongMold PlasticTech. Co.,Ltd.
| Other |
enterprisecontrolunder thesamecontrollingshareholderand ultimatecontroller
Purchase offixedassets
Mould
Marketing
price
52.12 52.12 0.38% 10,000
N
Bankacceptanc
e
-
12 Dec. 2020;30 Dec. 2020
Juchao Website(www.cninfo.com.cn) No.: 2020-097,2020-099, 2020-107
| Sichuan |
ChanghongIntelligentManufacturingTechnology
enterprisecontrolunder thesamecontrolling
| Other | Purchasi |
ng/Purchase andconstruction offixed
line-
| N2 line |
transformation,
transformationand self-service
Marketing
price
576.3 576.3 4.16% 7,000
| vacuum line |
N
Spotexchange,
Bankacceptanc
e
-
12 Dec. 2020;30 Dec. 2020
Juchao Website(www.cninfo.com.cn) No.: 2020-097,2020-099, 2020-107
Co., Ltd.
| Co., Ltd. | shareholder |
and ultimatecontroller
| assets | sorting, baler |
qualityimprovementtransformation
YuanxinFinancialLease Co.,Ltd.
enterprisecontrolunder thesamecontrollingshareholderand ultimatecontroller
Financingbusiness
Financialstatement
Marketingprice
34,194.22 34,194.22 -- 65,000
| Other |
N
Cashsettlement
-12 Dec. 2020;30 Dec. 2020;13 July. 2021;29 July. 2021
Juchao Website(www.cninfo.com.cn) No.: 2020-097,2020-099, 2020-107,2021-050,2021-053,2021-058
| Total | -- | -- | 602,472.56 | -- | -- | -- | -- | -- | -- |
Detail of sales return with major amount involved Not applicable
their total amount by types during the reportingperiod (if applicable)
| Report the actual implementation of the daily related transactions which were projected about | 1. It is estimated that the related transaction amount resulted by purchasing goods (including door shell and plastic products etc.) and accepting fuel and power |
from Sichuan Changhong and its subsidiary by the Company for year of 2021 was 2920 million yuan at most (tax-excluded), actually 1,159,021,800 yuanoccurred in reporting period.
2. It is estimated that the related transaction amount resulted by purchasing goods (including compressor purchased, smart vacuum cleaner etc.) from
Changhong Huayi and its subsidiary by the Company for year of 2021 was 646.5 million yuan at most (tax-excluded), actually 254,493,700 yuan occurred inreporting period.
3. It is estimated that the related transaction amount resulted by purchasing or selling equipment, software, maintenance and spare parts and molds etc. from
Sichuan Changhong and its subsidiary by the Company for year of 2021 was 100 million yuan at most (tax-excluded), actually 1,726,700 yuan occurred inreporting period.
4. It is estimated that the related transaction amount resulted by selling goods and providing fuel and power to Sichuan Changhong and its subsidiary by the
Company for year of 2021 was 9760 million yuan at most (tax-excluded), actually 3,818,345,400 yuan occurred in reporting period.
5. It is estimated that the related transaction amount resulted by leasing business to Sichuan Changhong and its subsidiary by the Company for year of 2021
was 50 million yuan at most (tax-excluded), actually 12,401,500 yuan occurred in reporting period.
6. It is estimated that the related transaction amount from domestic finished goods logistic business outsourcing to Sichuan Changhong Minsheng Logistics
Co., Ltd. by the Company for year of 2021 was 520 million yuan at most (tax-excluded), actually 224,557,400 yuan occurred in reporting period.
7. It is estimated that the related transaction amount from after sales service of domestic goods outsourcing to Sichuan Service Exp. Appliance Service Chain
Co., Ltd. by the Company for year of 2021 was 350 million yuan at most actually 93,499,100 yuan occurred in reporting period.
8. It is estimated that the related transaction amount resulted by accepting other service and labor service etc. or providing other service and labor service etc.
to Sichuan Changhong and its subsidiary by the Company for year of 2021 was 56 million yuan at most (tax-excluded), actually 7,592,300 yuan occurred inreporting period.
9. It is estimated that the related transaction amount resulted by selling goods and leasing business from Sichuan Changhong Electronics Holding Group Co.,
Ltd and its subsidiary by the Company for year of 2021 was 76 million yuan at most (tax-excluded), actually 20,041,400 yuan occurred in reporting period.
10. It is estimated that the related transaction amount resulted by purchasing goods and receiving labor services, fuel power, leasing and purchasing equipment
etc. from Sichuan Changhong Electronics Holding Group Co., Ltd. and its subsidiary by the Company for year of 2021 was 360 million yuan at most (tax-excluded), actually 91,104,100 yuan occurred in reporting period.
11. It is estimated that the related transaction amount resulted by received the financing lease, commercial factoring and bill financing from Yuanxin Financial
Lease Co., Ltd was 650 million yuan at most, actually 341,942,200 yuan occurred in reporting period.
| Co., Ltd. by the Company for year of 2021 was 520 million yuan at most (tax-excluded), actually 224,557,400 yuan occurred in reporting period. | |
| Reasons for major differences between trading |
price and market reference price (if applicable)
Not applicable
(2) Related transactions by assets acquisition and sold
□ Applicable √ Not applicable
There are no related transactions by assets acquisition and sold in the period
(3) Material related transaction of jointly foreign investment
□ Applicable √ Not applicable
There are no material related transaction of jointly foreign investment occurred in the period
(4) Connect of related liability and debt
√ Applicable □ Not applicable
Whether has non-operational contact of related liability and debts or not
□ Yes √No
No non-operational contact of related liability or debts in Period
(5)Connect of related finance companies and finance companies controlled by the company
√ Applicable □ Not applicable
Deposit businessRelated party
Associatedrelationships
Maximum dailydeposit limit (10thousand yuan)
Deposit rate
range
Opening balance
(10 thousand
yuan)
Amount occurred
(10 thousandyuan)
Ending balance
(10 thousandyuan)SichuanChanghongGroup FinanceCo., Ltd.
| Amount occurred | ||
| Other enterprise |
control under thesame controllingshareholder andultimatecontroller
450,000.00 0.35%-4.805% 279,825.60 8,253.55
288,079.15
Loan business
Related party
Associatedrelationships
Loan amount (10
thousand yuan)
Loan interest rate
range
(10 thousand
yuan)
| Opening balance | Amount occurred |
(10 thousandyuan)
(10 thousand
yuan)SichuanChanghongGroup FinanceCo., Ltd.
Other enterprisecontrol under thesame controllingshareholder andultimatecontroller
450,000.00
| Ending balance | ||
Credit or other financial service
Related party Associated relationships
Business type
Total amount (10
thousand yuan)
Amount occurred (10
thousand yuan)Sichuan ChanghongGroup Finance Co., Ltd.
Other enterprise controlunder the samecontrolling shareholderand ultimate controller
Other financial services -note issuance
300,000.00
200,823.53
Sichuan ChanghongGroup Finance Co., Ltd.
Other enterprise controlunder the samecontrolling shareholderand ultimate controller
Other financial services -note discounting
300,000.00
66,157.70
Note 1: After deliberated and approved by the 27
th session of 9
th
BOD and 3
rdextraordinary shareholders general meeting of 2019held on 10 September 2019 and 27 September, it is agreed that the company and its related party, Changhong Huayi Compressor Co.,Ltd. (hereinafter referred to as "Changhong Huayi"), respectively, will increase the capital to Changhong Finance Company by 500
million yuan with its own funds, the total capital increase will not exceed RMB one billion. After capital increased, registered capitalof Changhong Finance Company changed to 2,693,938,365.84 yuan. The Company and Changhong Huayi holds 14.96% equity ofChonghong Finance Company respectively, and controlling shareholder of the Company -Sichuan Changhong Electric Co., Ltd andits controlling shareholder Sichuan Changhong Electronics Holding Group Co., Ltd holds 35.04% equity of Changhong FinanceCompany respectively.
Note 2: After deliberated and approved by the 41
st
session of 9
th BOD and 4
th
extraordinary shareholders general meeting of 2020held on 14 August 2020 and 12 October, it is agreed to continue the financial services cooperation between the Company andChanghong Finance Company and renew the “Financial Service Agreement” for a period of three years. Changhong FinanceCompany will provides a series of financial services such as deposit and loans within scope of operation according to therequirements of Company and its subsidiaries.
(6) Other important related party transactions
√Applicable □ Not applicable
After deliberated and approved by the 7
th
session of 10
th BOD, the 6
th session of 10
th BOS and 1
st
extraordinaryshareholders general meeting of 2021 held on 19 April 2021 and 16 June, it is agreed to terminate the use ofproceeds to purchase part of the intelligent infrastructure platform construction owned by Sichuan ChanghongElectronic Co., Ltd (hereinafter referred to as Sichuan Changhong) and its subsidiary Sichuan HongweiTechnology Co., Ltd. (hereinafter referred to as Hongwei Technology) and Shenzhen Yijiaen Technology Co., Ltd.(hereinafter referred to Yijiaen), software R&D platform and other R&D assets. As of the date of the Reportdisclosed, the Company and the aforementioned related parties have completed the signing of the terminationagreement.
Related searches for disclosure website of interim report with major related transaction concerned
Interim report
| Interim report | Disclosure date | Website for disclosure |
| ”Notice on the Termination of Assets Purchases and |
Related Transactions”
2021-4-20
2021-031)XII. Significant contract and implementations
(1) Entrust, contract and leasing
1. Entrust
□Applicable √ Not applicable
No entrust in Period.
2. Contract
□Applicable √ Not applicable
No contract in Period.
3. Leasing
√Applicable □ Not applicable
Explanation of leasing
Operational leasing of the Company please found more details in “investment real estate”, “fixed assets”, “Right-of-use assets”, “Lease of related party” and “Rent of related party” in Note of Financial Statement.
Gains or losses to the Company from projects that reached over 10% in total profit of the Company in reportingperiod.
□ Applicable √Not applicable
No gains or losses to the Company from projects that reached over 10% in total profit of the Company inreporting period.
(2) Material guarantee
√ Applicable □ Not applicable
During the reporting period, the guarantees provided by the company to the wholly-owned and holdingsubsidiaries are guarantees for supporting bank credits generated by its production and operation. The guarantystyle is the guarantee. The company and its subsidiaries did not provide guarantees to subjects outside the scope ofconsolidated statements. The company and its holding subsidiaries had no overdue external guarantees, noexternal guarantees involving litigation, and no losses due to the award of the guarantee. Up to 30 June 2021, theexternal guarantees of the Company and subsidiaries are as follows:
In 10 thousand Yuan
Particulars about the external guarantee of the Company and subsidiaries (Barring the guarantee for subsidiaries)
| Particulars about the external guarantee of the Company and subsidiaries (Barring the guarantee for subsidiaries) | |
| Name of the | |
Companyguaranteed
Related Announcement
disclosure date
Guaranteelimit
Actual date ofhappening
guarantee
limit
Guarantee type
Collateral(if any)
| Actual | Counter |
guarantee
(if any)
Guaranteeterm
implementationor not
| Complete | Guarantee |
for related
party
| - | - | - | - | - | - | - | - | - | - | - |
Total approving external guarantee in report period (A1)
Total actual occurred external guarantee in report period (A2)
Total approved external guarantee at the end of report period( A3)
Total actual balance of external guarantee at the end of report period (A4)
| Guarantee between the Company and the subsidiaries | |
| Name of the | |
Companyguaranteed
Related Announcementdisclosure date
Guarantee
limit
Actual date of
happening
guarantee
limit
Guarantee type
Collateral
(if any)
| Actual | Counter |
guarantee
(if any)
Guarantee
term
implementationor not
| Complete | Guarantee |
for relatedparty
ZhongshanChanghongElectric Co.,Ltd.
and 2020-002 released on26 December 2019 and11 January 2020respectively
150,000.00
5 March 2020 5,000.00
| Notice No.: 2019-090 | Joint and several | |
liability guarantee
Y One year N N9 March 2020 15,000.00
N/A
Joint and several
liability guarantee
Y One year Y N27 March 2020 5,500.00
| Joint and several |
| Joint and several |
liability guarantee
Y One year Y N20 March 2020 20,000.00
liability guarantee
Y One year Y N14 April 2020 17,900.00
| Joint and several |
| Joint and several |
liability guarantee
Y One year Y N28 April 2020 12,000.00
liability guarantee
Y One year Y N10 June 2020 20,000.00
| Joint and several |
| Joint and several |
liability guarantee
Y One year Y N
| 17 August 2020 | 10,000.00 | Joint and several | Y | One year | Y | N |
liability guarantee
2 September 2020 15,000.00
| liability guarantee |
| Joint and several |
liability guarantee
Y One year N N
2020-098, 2020-101 and2020-107 released on 11December 2020 and 30December respectively
140,000.00
26 March 2021 13,000.00
| Notice No.: 2020-097, | Joint and several | |
liability guarantee
Y One year N N29 March 2021 18,000.00
liability guarantee
Y One year N N20 March 2021 20,000.00
| Joint and several |
| Joint and several |
liability guarantee
Y One year N N1 April 2021 20,000.00
liability guarantee
Y
| Joint and several | 11.5 |
months
N N6 April 2021 9,000.00
liability guarantee
Y One year N N25 May 2021 10,000.00
| Joint and several |
| Joint and several |
liability guarantee
Y One year N N
ChanghongMeiling RidianTechnologyCo., Ltd.
and 2020-002 released on26 December 2019 and11 January 2020respectively
30,000.00
2 April 2020 3,000.00
| Notice No.: 2019-090 | Joint and several | |
liability guarantee
Y One year N N2 April 2020 4,000.00
liability guarantee
Y One year Y N17 August 2020 6,500.00
| Joint and several |
| Joint and several |
liability guarantee
Y One year N N2 September 2020 5,000.00
liability guarantee
Y One year N N
| Joint and several | ||
| Notice No.: 2020-097, |
2020-098, 2020-101 and2020-107 released on 11December 2020 and 30December respectively
30,000.00
31 March 2021
4,000.00
Joint and severalliability guarantee
Y One year N N9 June 2021 5,000.00
Joint and severalliability guarantee
Y 6.8 months N N
ZhongkeMeilingCryogenicTechnologyCo., Ltd.
Notice No.: 2019-004,
2019-006 and 2019-012released on 30 January2019 and 23 Februaryrespectively
14,000.00 30 December 2019 2,000.00
Joint and severalliability guarantee
Y 11 months Y N
| Notice No.: 2019-004, |
| Notice No.: 2019-090, |
2020-002, 2020-012,2020-019 and 2020-036released on 26 December2019, 11 January 2020,28 March 2020 and 30May respectively
18,000.00
10 March 2020 1,000.00
liability guarantee
Y One year Y N1 June 2020 1,500.00
| Joint and several |
| Joint and several |
liability guarantee
Y 9.5 months Y N18 June 2020 500.00
liability guarantee
Y 8.6 months Y N24 August 2020 2,000.00
| Joint and several |
| Joint and several |
liability guarantee
Y One year Y N25 September 2020 3,000.00
liability guarantee
Y One year N N19 November 2020 1,000.00
| Joint and several |
| Joint and several |
liability guarantee
Y One year N N25 December 2020 2,000.00
liability guarantee
Y One year N N
| Joint and several | ||
| Notice No.: 2020-097, |
2020-098, 2020-101 and2020-107 released on 11December 2020 and 30December respectively
26,000.00 24 May 2021 5,000.00
Joint and severalliability guarantee
Y One year N N
SichuanChanghongAir-conditionerCo., Ltd.
Notice No.: 2020-097,
2020-098, 2020-101 and2020-107 released on 11December 2020 and 30December respectively
100,000.00 - - - - - - -
ChanghongRUBA TradeCompany
| Notice No.: 2020-097, |
| Notice No.: 2019-083, |
2019-084 and 2019-087released on 7 December2019 and 18 Decemberrespectively
6345note 1
23 December 2019 2,103.51
liability guarantee
Y One year Y N16 December 2020 1,831.50
Joint and severalliability guarantee
Y
11.4
months
N N
Joint and several
Notice No.: 2020-097,
2020-098, 2020-101 and2020-107 released on 11December 2020 and 30December respectively
5920.38
note 2
- - - - - - -
JiangxiMeilingElectricAppliance Co.,Ltd.
| Notice No.: 2020-097, |
| Notice No.: 2019-090 |
and 2020-002 released on26 December 2019 and11 January 2020respectively
15,000.00 9 April 2020 10,000.00
Joint and severalliability guarantee
Y One year Y N
2020-098, 2020-101 and2020-107 released on 11December 2020 and 30December respectively
10,000.00 - - - - - - -
Hefei MeilingNonferrousMetal ProductsCo., Ltd.
Notice No.: 2019-090
and 2020-002 released on26 December 2019 and11 January 2020respectively
3,000.00 20 March 2020 1,000.00
Joint and severalliability guarantee
Y One year Y N
| Notice No.: 2019-090 |
| Notice No.: 2020-097, |
2020-098, 2020-101 and2020-107 released on 11December 2020 and 30December respectively
3,000.00 - - - - - - -
Hefei MeilingGroupHoldingsLimited
and 2020-002 released on26 December 2019 and11 January 2020respectively
50,000.00 26 March 2020 6,000.00
Joint and severalliability guarantee
Y One year N N
| Notice No.: 2019-090 |
| Notice No.: 2020-097, |
2020-098, 2020-101 and2020-107 released on 11December 2020 and 30December respectively
50,000.00
30 December 2020 10,000.00
Joint and severalliability guarantee
Y One year N N5 March 2021 5,000.00
Joint and severalliability guarantee
Y One year N N
ChanghongMeiling LifeAppliancesCo., Ltd.
| Hefei | Notice No.: 2021-008, |
2021-009, 2021-011 and2021-034 released on 3March 2021and 29 Aprilrespectively
35,000.00 - - - - - - -
Total amount of approving guarantee forsubsidiaries in report period (B1)
35,000.00 Total amount of actual occurred guarantee for subsidiaries in report period (B2) 291,835.01
Total amount of approved guarantee for
subsidiaries at the end of reporting period(B3)
654,265.38
Total balance of actual guarantee for subsidiaries at the end of reporting period(B4)
167,331.50
| Total amount of approved guarantee for | ||
| Guarantee of the subsidiaries for the subsidiaries | ||
| Name of the | ||
Companyguaranteed
Related Announcement
disclosure date
Guarantee
limit
Actual date of
happening
guarantee
limit
Guarantee type
Collateral
(if any)
| Actual | Counter |
guarantee(if any)
Guarantee
term
implementationor not
| Complete | Guarantee |
for related
partyAnhui TuoxingTechnologyCo., Ltd.
Notice No.: 2021-013,2021-014, 2021-021 and2021-034 released on 3March 2021and 29 Aprilrespectively
6,000.00 30 April 2021 500
Joint and severalliability
- - 11 months N N
Total amount of approving guarantee forsubsidiaries in report period (C1)
6,000.00Total amount of actual occurred guarantee for subsidiaries in report period (C2)
Total amount of approved guarantee forsubsidiaries at the end of reporting period(C3)
6,000.00
Total balance of actual guarantee for subsidiaries at the end of reporting period(C4)
Total amount of approving guarantee in report period(A1+B1+C1)
41,000.00
Total amount of actual occurredguarantee in report period(A2+B2+C2)
292,335.01Total amount of approved guarantee at the end ofreport period (A3+B3+C3)
660,265.38
Total balance of actual guarantee at theend of report period (A4+B4+C4)
167,831.50
Total amount of guarantee of the Company (total of three abovementioned guarantee)Ratio of actual guarantee (A4+B4+C4) in net assets of the Company
| Ratio of actual guarantee (A4+B4+C4) in net assets of the Company | 34.74% |
| Including: | |
Amount of guarantee for shareholders, actual controller and its related parties (D)
| Amount of guarantee for shareholders, actual controller and its related parties (D) | 0 |
| The debts guarantee amount provided for the guaranteed parties whose assets- |
liability ratio exceed 70% directly or indirectly (E)
117,831.50
(F)
| Proportion of total amount of guarantee in net assets of the Company exceed 50% | |
| Total amount of the aforesaid three guarantees (D+E+F) | 117,831.50 |
| Explanations on possibly bearing joint and several liquidating responsibilities for |
undue guarantees (if applicable)
N/A
| Explanations on external guarantee against regulated procedures (if applicable) | N/A |
Note 1: In order to unify the currency for totaling, the exchange rate here was converted from the US dollar to the RMB 7.05 on October 31, 2019. For details, please refer to the announcementNo. 2019-090 disclosed by the company.Note 2: In order to unify the currency for totaling, the exchange rate here was converted from the US dollar to the RMB 6.5782 on Nonmember 30, 2020. For details, please refer to theannouncement No. 2020-101 disclosed by the company.The above-mentioned guarantee objects are the wholly-owned and holding subsidiaries of the Company, and these wholly-owned and holding subsidiaries are in normal production andoperation, there are no overdue loans, and the guarantee risks are controllable. By the end of this report,, The maximum amount of guarantee provided by the approved company to thesubsidiary is 350 million Yuan by the approval, the actual amount of guarantee is 2,918,350,100 Yuan. At the end of the reporting period, the practical guarantee balance amounted to1,673,315,000 Yuan, accounting for the Company’s latest net assets ratio of 34.64%; During the reporting period, the maximum credit guarantee provided by the Company to its subsidiariesapproved by the Company was 60 million yuan, the actual amount of guarantee incurred was 5 million yuan. As of 30 June 2021, the actual balance of guarantee provided by the subsidiaries tosubsidiaries was 5 million yuan, accounting for 0.10% of the Company’s latest net assets.
Explanation on guarantee with composite way: Not applicable
(3) Trust financing
√Applicable □ Not applicable
In 10 thousand YuanType Capital sources Amount for entrust Undue balance Overdue amount
Impairment amount for
overdue financial
managementBank financing products
Own fund 132,400
62,400
| Bank financing products | Idle raised funds | 12,000 | 12,000 | 0 | 0 |
| Total | 144,400 | 74,400 | 0 | 0 | |
Details of the single major amount, or high-risk trust investment with low security, poor fluidity and non-guaranteed:
√Applicable □ Not applicable
In 10 thousand Yuan
Trusteeinstitution(or name of
trustee)
Trusteetype
Producttype
Amount
Source offunds
Startdate
Expiry date
Capital investmentpurpose
Criteria forfixingrewar
d
Referenceannual rate
ofretur
n
Anticip
atedincome
(ifapplica
ble)
Actualgains/losses inperiod
Actualcollecte
dgains/losses inperiod
Amount
ofreservefordevaluation ofwithdrawing (ifapplica
ble)
Whet
herappro
ved
by
legalproce
dure(Y/N)
Whethe
r hasentrustfinanceplan in
the
future
Summary
of theitems and
related
queryindex (ifapplicable
)
| Amount | ||
| Hefei Branch of Bank of East Asia (China) Co., |
Ltd.
Bank
Principal-guarante
floatingincome
10,000.00
Idleownfunds
January
July2021
| ed with | Deposits embedded in financial derivatives absorbed by banks are linked to exchange rate fluctuations so that depositors can get corresponding returns on the basis of assuming |
certain risks.
Annualizedreturns:
3.60%
3.60% 181.00 - - N/A Y
Notapplicable
JuchaoWebsite(www.cninfo.com.cn)(NoticeNo.: 2021-003)
Mianyang
Communications Co., Ltd
Bank
Principal-guarante
| Branch of Bank of | ed with |
floatingincome
20,000.00
Idleownfunds
Jan.
Apr.2021
Bank of Communicationsoperates the funds raised
them in accordance withthe principle of separating
| basic deposits from derivative transactions. |
The raised principal willbe included in the internal
management, and will be
| included in the payment scope of deposit reserve fund and deposit insurance. The embedded |
Annualizedreturns:
3.15%
3.15% 157.07 157.07 157.07
N/A Y
Notapplicable
JuchaoWebsite(www.cninfo.com.cn)(NoticeNo.: 2021-003)
derivative part of productswill be linked to theexchange rate, interest
rate
| , commodity and |
index, etc.
AnhuiProvince
Communications Co., Ltd
Bank
Principal-guarante
| Branch of Bank of | ed with |
floatingincome
10,000.00
Idleownfunds
Jan.
Apr.2021
Bank of Communicationsoperates the funds raised
them in accordance withthe principle of separating
| basic deposits from derivative transactions. |
The raised principal willbe included in the internalfund of
Communications for
| unified operation and |
management, and will be
scope of
| deposit reserve fund and deposit |
insurance. The embeddedderivative part of products
rate
| , commodity and |
index, etc.
Annualizedreturns:
3.15%
3.15% 77.67 77.67 77.67
N/A Y
Notapplicable
JuchaoWebsite(www.cninfo.com.cn)(NoticeNo.: 2021-003)
Hefei Branchof Bank ofChina Co.,
Ltd.
Bank
Capitalguaranteedminimum returntype
10,000.00
Idleownfunds
Jan.
July2021
The funds raised by this
| Hefei Branch of Bank of China Co., | product will be operated |
uniformly by the Bank of
The raised principal willbe included in the internalfund for unified operation
| and management of the |
Bank of China, and will
payment scope of depositreserve fund and depositinsurance. The embedded
| derivatives part of the |
product is invested in theexchange rate, interest
derivatives.
Annualizedreturns:
3.63%
3.63% 176.03 - - N/A Y
Notapplicable
JuchaoWebsite(www.cninfo.com.cn)(NoticeNo.: 2021-003)
| rate, commodity, index and other derivatives markets, and the final performance of the product is linked to the | ||
| Hefei Branch |
of Bohai BankCo., Ltd.
Bank
Principal-guarante
floatingincome
5,000.00
Idleownfunds
Jan.
July2021
| ed with | A structured deposit products, and its derivative products are partially pegged to the |
mid-rate of the USD-JPYexchange rate.
Annualizedreturns:
3.50%
3.50% 87.26 - - N/A Y
Notapplicable
JuchaoWebsite(www.cninfo.com.cn)(NoticeNo.: 2021-003)Chengdu
Co., Ltd.
Bank
Principal-guarante
| Branch of Bohai Bank | ed with |
floatingincome
10,000.00
Idleownfunds
Jan.
July2021
mid-rate of the USD-JPYexchange rate.
Annualizedreturns:
3.50%
3.50% 174.52 - -N/A Y
Notapplicable
巨潮资讯网（www.cninfo.com.cn）（2021-004号公告)
MianyangBranch ofBank of ChinaCo., Ltd.
Bank
Capitalguaranteedminimum returntype
20,000.00
Idleownfunds
Jan.
Apr.2021
The funds raised by this
product will be operated
uniformly by the Bank of
| China and managed in accordance with the |
principle of separating
The raised principal willbe included in the internalfund for unified operation
| and management of the |
Bank of China, and will
payment scope of depositreserve fund and depositinsurance. The embedded
| derivatives part of the |
product is invested in the
o
| f China valued the |
embedded option price of
method
Annualizedreturns:
3.54%
3.54% 178.45 178.45 178.45
N/A Y
Notapplicable
JuchaoWebsite(www.cninfo.com.cn)(NoticeNo.: 2021-003)
HefeiChangdong
| this structured deposit based on the income | ||
| Branch of |
ICBC
Bank
Principal-guarante
floatingincome
10,000.00
Idleownfunds
Jan.
Apr.2021
| ed with | The principal part of this product is incorporated |
into the internal fund for
management of Industrialand Commercial Bank of
| China, and the income part is invested in |
derivative products linked
US dollar against
| Japanese yen, and the product income is linked |
Annualizedreturns:
3.30%
3.30% 83.18 53.82 53.82
N/A Y
Notapplicable
JuchaoWebsite(www.cninfo.com.cn)(NoticeNo.: 2021-005)
to the performance of theexchange rate of USdollar against Japaneseyen in the internationalmarket during theobservation period.Investors' returns depend
on the performance of thedollar-yen exchange rate
| during the observation |
period.
EverbrightBank
Bank
Principal-guarante
| Hefei Branch of China | ed with |
floatingincome
5,000.00
Idleownfunds
January
Apr.2021
This product is an
bank invests the raised
| structured deposits funds |
in fixed deposit
bank, at the same time,
| the bank invests it in financial derivative |
transactions (includingbut not limited to options
derivatives)
| in domestic or international financial |
markets w
limit of the income of thetime deposit, the sum ofthe profit and loss of thefinancial derivative
| transaction investment and the bank deposit interest constitutes the income of the structured |
deposit product.
Annualizedreturns:
3.00%
3.00% 37.50 37.50 37.50
N/A Y
Notapplicable
JuchaoWebsite(www.cninfo.com.cn)(NoticeNo.: 2021-004)
HangzhouCo., Ltd.
Bank
Principal-guarante
| Hefei Luyang Branch of Bank of | ed with |
floatingincome
5,000.00
Idleownfunds
May
2021
This
| 6 July | product is a structured deposit |
product, and its derivative
spot exchange rate of theEuro against the US dollar
Annualizedreturns:
3.20%
3.20% 26.74 - -N/A Y
Notapplicable
JuchaoWebsite(www.cninfo.com.cn)(NoticeNo.: 2021-036)
published on theBloomberg page "BFIX"
at 14:00 Beijing time onthe observation date.
Mianyang
| published on the Bloomberg page "BFIX" | ||
| Branch of Bank of |
Communications Co., Ltd
Bank
Principal-guarante
floatingincome
10,000.00
Idleownfunds
May
| ed with | 1 July |
2021
Bank of Communicationsoperates the funds raised
them in accordance withthe principle of separating
| basic deposits from derivative transactions. |
The raised principal willbe included in the internal
management, and will be
| included in the payment scope of deposit reserve fund and deposit |
insurance. The embeddedderivative part of products
rate
| , commodity and |
index, etc.
Annualizedreturns:
3.31%
3.31% 47.16 - - N/A Y
Notapplicable
JuchaoWebsite(www.cninfo.com.cn)(NoticeNo.: 2021-036)
Mianyang
ChinaEverbrightBank
Bank
Principal-guarante
| Branch of | ed with |
floatingincome
5,000.00
Idleownfunds
May
2021
| 9 July | This product is an embedded financial derivatives of RMB structured deposits, the bank invests the raised structured deposits funds in fixed deposit of the bank, at the same time, the bank invests it in |
financial derivative
but not limited to options
| and swaps and other derivatives) in domestic or international financial |
Annualizedreturns:
3.30%
3.30% 28.88 - -N/A Y
Notapplicable
JuchaoWebsite(www.cninfo.com.cn)(NoticeNo.: 2021-036)
markets with the upper
limit of the income of thetime deposit, the sum ofthe profit and loss of the
| financial derivative |
transacti
deposit product.
| on investment and the bank deposit interest constitutes the income of the structured | ||
| Hefei Branch of Industrial |
Bank
Bank
Principal-guarante
floatingincome
5,000.00
Idleownfunds
May
| ed with | 7 July |
2021
This
product, the derivativeproduct of which is linkedto the morning benchmark
| price of Shanghai Gold Exchange on the |
observation date.
Annualizedreturns:
3.28%
3.28% 26.96 - - N/A Y
Notapplicable
JuchaoWebsite(www.cninfo.com.cn)(NoticeNo.: 2021-037)
Ltd.
Bank
Capitalguaranteedminimum returntype
5,000.00
Idleownfunds
May
June2021
The funds raised by this
| Hefei Branch of Bank of China Co., | product will be operated |
uniformly by the Bank of
The raised principal willbe included in the internalfund for unified operation
| and management of the |
Bank of China, and will
payment scope of depositreserve fund and depositinsurance. The embedded
| derivatives part of the |
product is invested in the
rate, comm
| odity, index and other derivatives markets, and the final performance of the product is linked to the |
derivatives.
Annualizedreturns:
3.29%
3.29% 19.38 19.38 19.38
N/A Y
Notapplicable
JuchaoWebsite(www.cninfo.com.cn)(NoticeNo.: 2021-037)
Mianyang
Branch of
Ping An Bank
Bank
Principal-guarante
| Branch of | ed with |
floatingincome
12,000.00
Idlefundraised
May
Aug.2021
This
product,
| the structured derivatives of which is linked to the CSI 500 |
index.
Annualizedreturns:
3.40%
3.40% 102.84 - -N/A Y
Notapplicable
JuchaoWebsite(www.cninfo.com.cn)(NoticeNo.: 2021-041)
Zhongshan
Communications
Bank
Principal-guarante
| Branch of Bank of | ed with |
floatingincome
2,400.00
ZhongshanChanghongIdleownfunds
July
2021
| 8 Oct. | Bank of Communications |
operates the funds raised
them in accordance withthe principle of separating
| basic deposits from derivative transactions. |
The raised principal willbe included in the internalfund of
Communications for
| unified operation and |
management, and will be
scope of
| deposit reserve fund and deposit |
insurance. The embeddedderivative part of productswill be linked to the
index, etc.
Annualizedreturns:
3.20%
3.20% 20.83 - -N/A Y
Notapplicable
JuchaoWebsite(www.cninfo.com.cn)(NoticeNo.: 2021-048)
Total 144,400.00 -- -- -- -- -- -- 1,425.47 523.89 -- -- -- -- --
Entrust financial expected to be unable to recover the principal or impairment might be occurred
□Applicable √ Not applicable
(4) Major contracts for daily operations
□Applicable √ Not applicable
(5) Other material contracts
□Applicable √ Not applicable
No other material contracts in the period
XIII. Explanation on other significant events
√Applicable □ Not applicable
1. After deliberated and approved by the 5
th
session of 10
th BOD, 4
th session of 10
th
BOS and Annual GeneralMeeting of 2020, the Company agrees to use the idle fund raised up to 120 million yuan (the amount can be usedo a rolling basis) to invest in capital-protected financial products with high security, good liquidity and amaximum term of not more than one year for a single product. Found more on appointed media “SecuritiesTimes”, “China Securities Journal”, “Hong Kong Commercial Daily” and www.cninfo.com.cn that the Companydisclosed in the form of announcement (Announcement No. 2021-008, 2021-009, 2021-010 and 2021-034) on 3March 2021 and 29 April 2021.
2. After deliberated and approved by the 5
th session of 10
th
BOD, the Company agrees to invest 24.4276 millionyuan in the technical transformation of the refrigerator (cabinet) production line of Hefei Base to achieved costreduction and efficiency enhancement in order to reduce the manufacturing costs and further enhance the marketcompetitiveness of the Company’s products. Found more on appointed media “Securities Times”, “ChinaSecurities Journal”, “Hong Kong Commercial Daily” and www.cninfo.com.cn that the Company disclosed in theform of announcement (Announcement No. 2021-008) on 3 March 2021.
3. After deliberated and approved by the 6
th session of 10
th
BOD and Annual General Meeting of 2020, it agreedthat the Company and its subsidiaries shall carry out forward foreign exchange fund trading business during theperiod from 1 July 2021 to 30 June 2022. Balance of trading not exceeding US$ 720 million (mainly includingUSD, AUD, EUR and other foreign exchange converted to USD), and the maximum period of delivery of a singlebusiness shall not exceed one year. Found more on appointed media “Securities Times”, “China SecuritiesJournal”, “Hong Kong Commercial Daily” and www.cninfo.com.cn that the Company disclosed in the form ofannouncement (Announcement No. 2021-013, 2021-019 and 2021-034) on 3 March 2021 and 29 April 2021.
4. After deliberated and approved by the 6
th session of 10
th
BOD and Annual General Meeting of 2020, it agreedthe Company’s formulation of “Shareholders Return Plan for the Next Three Years (2021-2023)”. Found moreon appointed media “Securities Times”, “China Securities Journal”, “Hong Kong Commercial Daily” andwww.cninfo.com.cn that the Company disclosed in the form of announcement (Announcement No. 2021-013 and2021-034) on 31 March 2021 and 29 April 2021.
5. After deliberated and approved by the 6
th session of 10
th
BOD, it was agreed to appointed Mr. Tang Youdao asthe vice president of the Company, office term is same as the 10
thBOD. Found more on appointed media“Securities Times”, “China Securities Journal”, “Hong Kong Commercial Daily” and www.cninfo.com.cn that theCompany disclosed in the form of announcement (Announcement No. 2021-013 ) on 31 March 2021.
6. The resolution of the 6
thsession of the tenth board of directors and the 2020 annual general meeting ofshareholders approved and agreed that the company and its subsidiaries apply to Industrial Bank Co., Ltd., HefeiBranch for a special credit line of bill pool of up to 300 million yuan, and agreed that the company and its
subsidiaries apply to Ping An Bank Co., Ltd. Hefei Branch for a special credit line of bill pool of up to 300million yuan, and agreed that the company and its subsidiaries apply to Huishang Bank Co., Ltd. Hefei EconomicDevelopment Zone Branch for a special credit line of bill pool of up to 300 million yuan, and agreed that thecompany and its subsidiaries apply to China Merchants Bank Co., Ltd., Hefei Branch for a special credit line ofbill pool of up to 300 million yuan, and agreed that the company and its subsidiaries apply to China Citic BankCo., Ltd., Hefei Branch for a special credit line of bill pool of up to 50 million yuan. The credit period is one year,and the types of credit are mainly used for the special business of bill pool, and endorsement for pledge is adopted.Found more on appointed media “Securities Times”, “China Securities Journal”, “Hong Kong Commercial Daily”and www.cninfo.com.cn that the Company disclosed in the form of announcement (Announcement No. 2021-013,2021-022 and 2021-034) on 31 March 2021 and 29 April 2021.
7. The 6
th
session of the tenth board of directors and the 2020 annual general meeting of shareholders of thecompany approved the renewal of Shine Wing Accounting Firm (special general partnership) as the company's2021 annual financial report and internal control audit firm for one year. At the same time, the shareholders'general meeting authorized the management of the company to determine the annual audit remuneration inaccordance with the industry standards and the actual audit work of the company. Found more on appointed media“Securities Times”, “China Securities Journal”, “Hong Kong Commercial Daily” and www.cninfo.com.cn that theCompany disclosed in the form of announcement (Announcement No. 2021-013, 2021-017 and 2021-034) on 31March 2021 and 29 April 2021.
8. Mr. Zhu Wenjie, the former securities affairs representative and staff supervisor of the company, applied to
resign his position as staff supervisor and securities affairs representative of the tenth board of the company due topersonal reasons. In order to ensure that the structure of the board of supervisors in accordance with relevant legalrequirements, the company’s congress of staff and workers held a meeting on March 30, 2021, it’s agreed to electMs. Sun Hongying as the staff representative supervisor of the tenth board of the company by voting of staffrepresentatives, and the term of office is from the date of approval to the deliberation of the company’s congressof staff and workers to the date of expiration of the tenth board of supervisors. Found more on appointed media“Securities Times”, “China Securities Journal”, “Hong Kong Commercial Daily” and www.cninfo.com.cn that theCompany disclosed in the form of announcement (Announcement No. 2021-023) on 31 March 2021.
9. After deliberated and approved by the 7
th session of 10
th
BOD and 6
th
session of 10
th
BOS, it was agreed thatthe Company should implement the new leasing standard and change the related accounting policy according tothe relevant regulations and requirements of the Ministry of Finance. Found more on appointed media “SecuritiesTimes”, “China Securities Journal”, “Hong Kong Commercial Daily” and www.cninfo.com.cn that the Companydisclosed in the form of announcement (Announcement No. 2021-028, 2021-029 and 2021-030) on 20 April 2021.
10. The 7
th session of the tenth board of directors, the 6
thsession of the tenth board of supervisors and the firstextraordinary general meeting of shareholders in 2021 approved and agreed that the company terminates the useof the raised funds to purchase underlying assets of the sub-project "intelligent research and developmentmanagement platform construction" of the "intelligent research and development ability building and intelligenthome appliance technology development project" from Sichuan Changhong Electric Co., Ltd. and its subsidiaries
and the related transactions. Found more on appointed media “Securities Times”, “China Securities Journal”,“Hong Kong Commercial Daily” and www.cninfo.com.cn that the Company disclosed in the form ofannouncement (Announcement No. 2021-028, 2021-029, 2021-031 and 2021-046) on 20 April 2021 and 17 June2021.
11. The resolution of the 8
th
session of the tenth board of directors approved and agreed that the company and itssubsidiaries apply to Bank of Jiujiang , Hefei Branch for a special credit line of up to 400 million yuan of bill pool,the credit period is one year, the types of credit are mainly used for the special business of bill pool, andendorsement for pledge is adopted. Found more on appointed media “Securities Times”, “China SecuritiesJournal”, “Hong Kong Commercial Daily” and www.cninfo.com.cn that the Company disclosed in the form ofannouncement (Announcement No. 2021-038 and 2021-039) on 27 May 2021.XIV. Major event of the subsidiary
√Applicable □ Not applicable
1. After deliberated and approved by the 5
th session of 10
thBOD, it was agreed the subordinate controllingsubsidiary - Zhongke Meiling to invested 10 million yuan to establish a wholly-owned subsidiary -- Anhui LinganMedical Equipment Co., Ltd. Found more on appointed media “Securities Times”, “China Securities Journal”,“Hong Kong Commercial Daily” and www.cninfo.com.cn that the Company disclosed in the form ofannouncement (Announcement No. 2021-008) on 3 March 2021.
2. After deliberated and approved by the 5
th
session of 10
th BOD, 4
th session of 10
thBOS and Annual GeneralMeeting of 2020, it was agreed to provide a credit guarantee of up to 350 million yuan to subordinate controllingsubsidiary - Changmei Life Electric, with a guarantee period of one year. Found more on appointed media“Securities Times”, “China Securities Journal”, “Hong Kong Commercial Daily” and www.cninfo.com.cn that theCompany disclosed in the form of announcement (Announcement No. 2021-008, 2021-009, 2021-011 and 2021-034 ) on 3 March 2021 and 29 April 2021.
3. After deliberated and approved by the 6
th session of 10
th BOD, 5
th
session of 10
th
BOS and Annual GeneralMeeting of 2020, it was agreed that Zhongshan Changhong (subsidiary of the Company) to write off the bad debtsof 1,657,332.46 yuan in total that have become uncollectible. Found more on appointed media “Securities Times”,“China Securities Journal”, “Hong Kong Commercial Daily” and www.cninfo.com.cn that the Company disclosedin the form of announcement (Announcement No. 2021-008, 2021-013, 2021-014, 2021-020 and 2021-034 ) on31 March 2021 and 29 April 2021.
4. After deliberated and approved by the 6
th session of 10
th BOD, 5
th
session of 10
th
BOS and Annual GeneralMeeting of 2020, it was agreed that Zhongke Meiling Cryogenic Technology Co., Ltd. (controlling subsidiary ofthe Company) to provide a credit guarantee of 60 million yuan to its wholly-owned subsidiary - Anhui TuoxingTechnology Co., Ltd, with guarantee of one year. Found more on appointed media “Securities Times”, “ChinaSecurities Journal”, “Hong Kong Commercial Daily” and www.cninfo.com.cn that the Company disclosed in theform of announcement (Announcement No. 2021-013, 2021-014, 2021-021 and 2021-034 ) on 31 March 2021and 29 April 2021.
5. The resolution of the 8
th
session of the tenth board of directors agreed that the company's wholly-ownedsubsidiary Hefei Meiling Wulian Technology Co., Ltd invests 37.69 million yuan in building industrial internetservice capacity to further expand informatization and digital business and service capacity, and build acomprehensive capability of new business type integrating "manufacturing + service" businesses. Found more onappointed media “Securities Times”, “China Securities Journal”, “Hong Kong Commercial Daily” andwww.cninfo.com.cn that the Company disclosed in the form of announcement (Announcement No. 2021-038 ) on27 May 2021.
Section VII. Changes in Shares and Particulars about Shareholders
I. Changes in Share Capital(i) Changes in Share Capital
In Share
Before the Change Increase/Decrease in the Change (+, -) After the ChangeAmount
ProportionNew
shares
issued
Bonusshares
Publicreservetransfer
intosharecapital
Others Subtotal Amount
Proportio
n
| I. Restricted shares | 10,472,676 | 1.00% | 0 | 0 | 0 | -2,029,754 | -2,029,754 | 8,442,922 | 0.81% |
1. State-owned shares 0
0.00%
0.00%
2. State-owned legal
person’s shares
1,653,735
0.16%
1,653,735
0.16%
3. Other domestic shares 7,551,521
0.72%
-2,029,754
-2,029,754
5,521,767
0.53%
Including: Domestic legalperson’s shares
3,978,329
0.38%
3,978,329
0.38%
Domestic naturalperson’s shares
3,573,192
0.34%
-2,029,754
-2,029,754
1,543,438
0.15%
| 4. Foreign shares | 1,267,420 | 0.12% | 0 | 0 | 0 | 0 | 0 | 1,267,420 | 0.12% |
| Including: Foreign legal |
person’s shares
0.00%
| 0 |
0.00%
| Foreign natural |
person’s shares
1,267,420
0.12%
1,267,420
0.12%
II. Unrestricted shares 1,034,125,205
99.00%
+2,029,754
+2,029,754
| 1,036,154,959 |
99.19%
1. RMB ordinary shares 872,528,625
83.53%
+2,029,754
+2,029,754
874,558,379
83.72%
| 2. Domestically listed |
foreign shares
161,596,580
15.47%
161,596,580
15.47%
3. Overseas listed foreign
shares
0.00%
0.00%
4. Others 0
0.00%
0.00%
III. Total shares 1,044,597,881
100.00%
1,044,597,881
100.00%
1. Reasons for share changed
√ Applicable □ Not applicable
In accordance with the relevant provisions of the Implementation Rules for Share Reduction of Shareholders,Directors, Supervisors and Senior Managers of Listed Companies at Shenzhen Stock Exchange, if the a director,supervisor or senior manager quits before the expiration of the term of office, he/she shall continue to abide by therelevant provisions on the release of restricted share sales within the term determined when he took office andwithin six months after the expiration of his/her term of office. During the reporting period, the term of office ofsome of the directors, supervisors and senior managers of the ninth board of directors of the company expired forsix months, and the restrictions on sales of total 2,029,754 shares held by them were lifted.
2. Approval of share changed
□ Applicable √ Not applicable
3. Ownership transfer of share changed
□ Applicable √ Not applicable
4. Progress of shares buy-back
√ Applicable □ Not applicable
The company’s 40
th meeting of the ninth board of directors, the 21
stmeeting of the ninth board of supervisors, andthe 3rdextraordinary general meeting of shareholders in 2020 held on July 27, 2020 and August 18, 2020deliberated and approved the Proposal on the Repurchase of Part of Domestically Listed Foreign Shares (BShares) of the Company. Found more on announcement (Notice No.:2020-047, 2020-048, 2020-049, 2020-063,2020-064, 2020-066, 2020-081, 2020-092, 2020-093, 2020-094, 2020-095, 2021-001, 2021-007, 2021-012, 2021-025, 2021-035, 2021-042, 2021-045, 2021-049 and 2021-059) released on appointed media China SecuritiesJournal, Securities Times, Hong Kong Commercial Daily and Juchao Website.The company repurchased its shares for the first time from November 4, 2020 to June 30, 2021, and repurchased9,377,869 shares of the company by centralized bidding through a dedicated securities account for repurchase,accounting for 0.8977% of the company’s total share capital, the highest transaction price was HK$2.21/share, thelowest transaction price was HK$1.87/share, and the total amount of self-owned funds paid wasHK$20,112,237.81 (excluding transaction fees such as stamp duty and commission).As of the disclosure date of this report, 9,582,882 shares of the company have been repurchased by centralizedbidding through the special securities account for repurchase, accounting for 0.9174% of the company’s totalshare capital. The highest transaction price was HK$2.21/share, and the lowest transaction price wasHK$1.87/share, the total amount of self-owned funds paid was HK$20,552,943.96 (excluding transaction feessuch as stamp duty and commission).
5. Implementation progress of reducing holdings of shares buy-back by centralized bidding
□ Applicable √ Not applicable
6. Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share
attributable to common shareholders of Company in latest year and period
□ Applicable √ Not applicable
7. Other information necessary to disclose or need to disclosed under requirement from security regulators
□ Applicable √ Not applicable
(ii) Changes of lock-up stocks
√ Applicable □ Not applicable
In Share
Sharehold
ers
Opening
shares
Shares
released in
| released in | Restricte |
d
shares
Endingshares
| restricte |
Restricte
d
Date for released
restricted
| restricted | Period | increase |
d
inPeriod
| d | reasons |
ZhangXiaolong
363,525
363,525
Sharelockup
executives
| in senior | On October 24, 2017, due to job transfer, Zhang Xiaolong no longer served |
as vice president of the
Exchange, the original term of office should expire on September
| 12, 2020. During the reporting period, his/her term of office has expired for six months, and all restrictions on sales of the company's shares have been |
lifted.
Liao Tao 528,724
528,724
Sharelockup
executives
| in senior | On November 21, 2017, due to job transfer, Liao Tao no longer served as vice president of the Company. According to the relevant provisions of the Implementation Rules for Share Reduction of Shareholders, Directors, |
Supervisors and Senior Managers of Listed Companies at Shenzhen St
lifted.
TengGuangsheng
66,150
| ock Exchange, the original term of office should expire on September 12, 2020. During the reporting period, his/her term of office has expired for six months, and all restrictions on sales of the company's shares have been | ||
66,150
Sharelockup
| in senior |
executives
Implementation Rules for Share Reduction of Shareholders,
| Directors, Supervisors and Senior Managers of Listed Companies at Shenzhen Stock Exchange, the original term of office should expire on September 12, 2020. During the reporting period, his/her term of office has expired for six |
months, and all restrictions
lifted.
Li Wei 1,071,355
| on sales of the company's shares have been | ||
1,071,355
Sharelockup
| in senior |
executives
During the reporting period, his/her term
| of office has expired for six months, and all restrictions on sales of the company's shares have been |
lifted.
| Total | 2,029,754 | 2,029,754 | 0 | 0 | -- | -- |
II. Securities issuance and listing
□ Applicable √ Not applicable
III. Amount of shareholders of the Company and particulars about shares holding
In Share
Total common stock shareholders in reporting
period-end
76,311
| Total common stock shareholders in reporting | Total preference shareholders with voting rights recovered |
at end of reporting period (if applicable)
| Particulars about common shares held above 5% by shareholders or top ten common shareholders | |
Full name of Shareholders
Nature ofshareholder
of shares
held
Amount ofcommonshares held atthe end ofreportingperiod
Changes inreport period
| Proportion | Amount |
ofrestricte
d
sharesheld
| common | Amount of common |
shares held withoutrestriction
shares pledged,tagged or frozen
Stateofshare
Amount
Sichuan Changhong Electric Co., Ltd.
| State-owned |
legal person
23.79%
248,457,724
248,457,724
- -
| Hefei Industry Investment Holding |
(Group) Co., Ltd.
legal person
4.58%
| State-owned |
47,823,401
47,823,401
- -
LIMITED
| CHANGHONG (HK) TRADING | Foreign |
legal person
2.59%
27,077,797
27,077,797
- -Ma Guobin
| Domestic |
natureperson
1.95%
20,324,900
+7,093,846
20,324,900
- -CAO SHENGCHUN
| Foreign |
natureperson
1.41%
14,766,086
14,766,086
- -Caitong Fund- Ningbo Bank-
| Haitong Xingtai (Anhui) Emerging Industry |
Investment Fund (Limited Partnership)
non-state-
| owned legal |
person
1.03%
10,733,452
10,733,452
- -Philip Securities (H.K.) Co., Ltd.
| Foreign |
legal person
0.60%
6,296,913
6,296,913
- -Wang Yumei
| Domestic |
natureperson
0.56%
5,818,600
+5,818,600
5,818,600
- -Gu Jie
| Domestic |
natureperson
0.41%
4,285,700
4,285,700
- -Long Qinfang
| Domestic |
natureperson
0.34%
3,558,116
3,558,116
- -
| Strategy investor or general legal person becoming the |
top 10 common shareholders by placing new shares (ifapplicable)
Not applicable
aforesaid shareholders
| Explanation on associated relationship among the | Among the above shareholders, CHANGHONG (HK) TRADING LIMITED (hereinafter |
referred to as Hong Kong Changhong) is the wholly-
Changhong Electric Co., Ltd.; except the B shares of the Company directly held by
| Hong |
Kong Changhong, 6,296,913 shares of B-
(Hong Kong) Co., Ltd., the foregoing shareholders constitute persons of uniform action.
There existed no associated relationship or belong to the concerted actors as
| specified in the Measures for the Administration of Information Disclosure of Shareholder Equity Changes of Listed Companies among Sichuan Changhong, Hong Kong Changhong and |
other top 7 shareholders （Excluding Phillip Securities (Hong Kong) Co., Ltd.）
“Caitong Fund- Ningbo Bank-
| Haitong Xingtai (Anhui) Emerging Industry Investment Fund (Limited Partnership)” refers to the products of Caitong Fund Management Company subscribe for privately placement of 2016; The company neither knows whether there is |
any as
Information Disclosure of Changes in Shareholding of Listed Companies”.
| sociation among other shareholders, nor knows whether other shareholders belong to the persons acting in concert that is stipulated in the “Administrative Measures on | |
| Description of the above shareholders in relation to |
delegate/entrusted voting rights and abstention fromvoting rights.
Not applicable
10 shareholders (if applicable)
| Special note on the repurchase account among the top | As of the disclosure date of the Report, the Company has repurchased a total of 9,582,882 shares of the Company through repurchase specific account for repurchase by means of centralized competitive bidding, representing 0.9174% of the total shares capital of the |
Company.
Shareholders’ name
| Particular about top ten shareholders with un-lock up common stocks held | ||
| Amount of common shares | ||
held without restriction atPeriod-end
Type Amount
Type of sharesSichuan Changhong Electric Co., Ltd.
| Sichuan Changhong Electric Co., Ltd. | 248,457,724 | RMB ordinary shares | 248,457,724 |
| Hefei Industry Investment Holding (Group) Co., Ltd. | 47,823,401 | RMB ordinary shares | 47,823,401 |
CHANGHONG (HK) TRADING LIMITED 27,077,797
| Domestically listed |
foreign shares
27,077,797
| Ma Guobin | 20,324,900 | RMB ordinary shares | 20,324,900 |
CAO SHENGCHUN 14,766,086
| Domestically listed |
foreign shares
14,766,086
| Caitong Fund- Ningbo Bank-Haitong Xingtai (Anhui) Emerging Industry |
Investment Fund (Limited Partnership)
10,733,452
RMB ordinary shares 10,733,452
Philip Securities (H.K.) Co., Ltd. 6,296,913
| Domestically listed |
foreign shares
6,296,913
| Wang Yumei | 5,818,600 | RMB ordinary shares | 5,818,600 |
| Gu Jie | 4,285,700 | RMB ordinary shares | 4,285,700 |
Long Qinfang 3,558,116
| Domestically listed |
foreign shares
3,558,116
| Expiation on associated relationship or consistent actors within the top 10 un- |
lock up common shareholders and between top 10 un-
shareholders and top 10 common shareholders
| lock up common | Found more in “Particulars about shares held above 5% by |
common shareholders or top 10 common shares holding”
applicable)
| Explanation on top 10 common shareholders involving margin business (if | As of June 30, 2021, among the top 10 common shareholders, Ma Guobin holds 20,324,300 shares of the Company through customer |
credit trading secured account of Founder Secu
20,324,900 shares of the Company are held in total. The
shareholder-
| Gu Jie holds 4,285,700 shares of the Company through |
customer credit trading secured account of China Merchant
Securities Co., Ltd.Note 1: At end of the reporting period, the person acting in concert with controlling shareholder Sichuan Changhong--CHANGHONG (HK) TRADING LIMITED, holds B-stock of the Company as 33,374,710 shares, among which, 6,296,913 sharesare held through Philip Securities (H.K.) Co., Ltd. by CHANGHONG (HK) TRADING LIMITEDNote 2: In the above table, "Particulars about shares held above 5% by shareholders or top 10 shares holding" is subject to the data onstock transfer books provided by China Securities Depository and Clearing Corporation Limited Shenzhen Branch
Whether top ten common stock shareholders or top ten common stock shareholders with un-lock up shares heldhave a buy-back agreement dealing in reporting period
□ Yes √ No
The top ten common stock shareholders or top ten common stock shareholders with un-lock up shares held of theCompany have no buy-back agreement dealing in reporting period.IV. Changes of shares held by directors, supervisors and senior executives
□ Applicable √ Not applicable
Shares held by directors, supervisors and senior executives have no changes in reporting period, found moredetails in Annual Report 2020.V. Changes in controlling shareholders or actual controllers(i) Change of controlling shareholder during the reporting period
□ Applicable √ Not applicable
The Company had no change of controlling shareholder during the reporting period(ii) Change of actual controller during the reporting period
□ Applicable √ Not applicable
The Company had no change of actual controller during the reporting period
Section VIII. Preferred Stock
□ Applicable √ Not applicable
The Company had no preferred stock in the Period
Section IX. Corporate Bonds
□ Applicable √ Not applicable
Section X. Financial Report
I. Audit reportWhether the semi annual report is audited
□ Yes √ No
The company's semi annual financial report has not been auditedII. Financial StatementStatement in Financial Notes are carried in RMB/CNY
1. Consolidated Balance Sheet
Prepared by CHANGHONG MEILING CO., LTD.
In RMBItem June 30, 2021 December 31, 2020
Current assets:
| Current assets: | ||
| Monetary funds | 5,310,519,267.78 | 6,594,786,789.98 |
Settlement provisions
Capital lent
Trading financial assets 755,672,778.49
| 47,242,339.07 |
Derivative financial assets
Note receivable 225,980,582.49
| 340,421,386.71 | ||
| Account receivable | 2,546,059,071.18 | 1,130,275,780.66 |
Receivable financing 1,132,467,568.98
| 1,632,388,702.83 |
Accounts paid in advance 54,246,200.90
| 30,105,373.40 |
Insurance receivable
Reinsurance receivables
Contract reserve of reinsurance receivable
| Other account receivable | 119,579,871.70 | 145,705,978.26 |
| Including: Interest receivable |
Dividend receivable
Buying back the sale of financial assets
Inventories 2,285,488,785.06
| 1,715,354,951.43 |
Contractual assets
| Assets held for sale | ||
| Non-current asset due within one year | ||
| Other current assets | 219,339,591.32 | 198,353,464.98 |
Total current assets 12,649,353,717.90
| 11,834,634,767.32 |
Non-current assets:
Loans and payments on behalf
Debt investment
Other debt investment
| Long-term account receivable |
Long-term equity investment 59,080,517.76
| 76,982,822.38 |
Investment in other equity instrument
Other non-current financial assets 548,148,931.34
| 548,148,931.34 |
Investment real estate 54,108,683.17
| 53,888,462.00 |
Fixed assets 2,350,222,653.32
| 2,391,859,440.31 |
Construction in progress 70,466,482.26
| 60,775,088.96 | ||
| Productive biological asset |
Oil and gas asset
Right-of-use assets 20,282,488.32
Intangible assets 927,615,291.27
| 936,851,520.65 |
Expense on Research and Development 96,330,033.73
| 73,028,441.56 |
Goodwill
| Long-term expenses to be apportioned | ||
| Deferred income tax asset | 107,738,248.10 | 127,185,979.94 |
Other non-current asset
Total non-current asset 4,233,993,329.27
| 4,268,720,687.14 |
Total assets 16,883,347,047.17
| 16,103,355,454.46 |
Current liabilities:
Short-term loans 869,283,195.68
| 1,336,209,050.55 | ||
| Loan from central bank | ||
| Capital borrowed |
Trading financial liability 2,746,170.22
| 4,584,076.51 |
Derivative financial liability
Note payable 4,988,353,889.72
| 4,439,607,982.34 |
Account payable 3,669,199,259.64
| 2,851,999,684.30 | ||
| Accounts received in advance | ||
| Contractual liability | 344,400,472.19 | 522,550,891.28 |
Selling financial asset of repurchase
Absorbing deposit and interbank deposit
Security trading of agency
Security sales of agency
Wage payable 196,823,503.48
| 290,321,776.05 | ||
| Taxes payable | 119,719,710.97 | 89,682,433.90 |
| Other account payable | 878,414,887.45 | 724,701,686.72 |
Including: Interest payable
Dividend payable 19,567,820.81
| 4,466,628.25 |
Commission charge and commission payable
Reinsurance payable
Liability held for sale
| Non-current liabilities due within one year | 421,663,697.44 | 407,825,150.74 |
| Other current liabilities | 23,101,717.53 | 22,923,698.73 |
Total current liabilities 11,513,706,504.32
| 10,690,406,431.12 |
Non-current liabilities:
Insurance contract reserve
Long-term loans 178,000,000.00
| 188,231,439.30 | ||
| Bonds payable | ||
| Including: Preferred stock |
Perpetual capital securities
Lease liability 12,529,575.32
Long-term account payable 1,433,821.62
| 1,705,323.91 |
Long-term wages payable 9,175,955.85
| 10,571,526.69 |
Accrual liability 23,102,517.39
| 62,392,735.07 |
Deferred income 167,352,922.29
| 177,377,450.12 |
Deferred income tax liabilities 6,920,365.79
| 10,575,582.33 |
Other non-current liabilities
| Total non-current liabilities | 398,515,158.26 | 450,854,057.42 |
Total liabilities 11,912,221,662.58
| 11,141,260,488.54 |
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 | 2,683,833,493.92 | 2,683,837,229.12 |
Less: Inventory shares 16,958,477.28
| 9,929,336.18 |
Other comprehensive income -22,722,447.52
-
| 21,451,084.17 |
Reasonable reserve
Surplus public reserve 416,364,790.43
| 416,364,790.43 |
Provision of general risk
| Retained profit | 726,135,293.17 | 740,754,202.23 |
| Total owner’ s equity attributable to parent company | 4,831,250,533.72 | 4,854,173,682.43 |
Minority interests 139,874,850.87
| 107,921,283.49 |
Total owner’ s equity 4,971,125,384.59
| 4,962,094,965.92 |
Total liabilities and owner’ s equity 16,883,347,047.17
| 16,103,355,454.46 |
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 June 30, 2021 December 31, 2020Current assets:
| Monetary funds | 3,072,458,869.77 | 4,605,962,184.11 |
Trading financial assets 734,738,131.52
| 37,589,391.07 |
Derivative financial assets
Note receivable 77,418,060.60
| 286,990,200.00 |
Account receivable 1,868,146,673.14
| 1,019,299,017.40 |
Receivable financing 1,020,374,809.16
| 1,561,429,139.80 | ||
| Accounts paid in advance | 62,698,224.34 | 39,571,728.09 |
| Other account receivable | 46,277,319.42 | 49,093,918.57 |
Including: Interest receivable
Dividend receivable
Inventories 631,726,937.31
| 578,905,855.30 |
Contractual assets
Assets held for sale
| Non-current assets maturing within one year |
Other current assets 126,732,141.71
| 142,573,164.77 |
Total current assets 7,640,571,166.97
| 8,321,414,599.11 |
Non-current assets:
Debt investment
| Other debt investment |
Long-term receivables
Long-term equity investments 1,854,070,770.46
| 1,834,115,835.95 |
Investment in other equity instrument
Other non-current financial assets 548,148,931.34
| 548,148,931.34 |
Investment real estate 3,857,164.06
| 3,961,590.38 | ||
| Fixed assets | 1,203,325,322.41 | 1,229,803,474.56 |
| Construction in progress | 57,766,896.80 | 47,570,309.13 |
Productive biological assets
Oil and natural gas assets
Right-of-use assets
Intangible assets 460,793,473.27
| 479,923,618.32 |
Research and development costs 65,641,364.07
| 42,913,363.51 | ||
| Goodwill | ||
| Long-term deferred expenses |
Deferred income tax assets 84,639,482.94
| 103,462,284.33 |
Other non-current assets
Total non-current assets 4,278,243,405.35
| 4,289,899,407.52 |
Total assets 11,918,814,572.32
| 12,611,314,006.63 | ||
| Current liabilities: | ||
| Short-term borrowings | 841,084,474.45 | 1,234,926,592.05 |
Trading financial liability 1,293,006.11
| 2,512,269.00 |
Derivative financial liability
Notes payable 2,531,614,143.77
| 2,510,288,511.69 |
Account payable 1,771,323,826.18
| 1,918,960,127.71 |
Accounts received in advance
| Contractual liability | 154,407,810.42 | 281,974,752.24 |
| Wage payable | 58,931,758.91 | 130,314,834.51 |
Taxes payable 15,899,092.72
| 19,582,700.30 |
Other accounts payable 692,819,441.99
| 624,090,798.72 |
Including: Interest payable
Dividend payable 18,967,820.81
| 3,866,628.25 |
Liability held for sale
| Non-current liabilities due within one year | 413,561,652.50 | 407,141,888.08 |
| Other current liabilities | 5,879,984.75 | 6,432,113.43 |
Total current liabilities 6,486,815,191.80
| 7,136,224,587.73 |
Non-current liabilities:
Long-term loans 178,000,000.00
| 188,231,439.30 |
Bonds payable
| Including: Preferred stock | ||
| Perpetual capital securities |
Lease liability
Long-term account payable
Long term employee compensation payable 9,175,955.85
| 10,571,526.69 |
Accrued liabilities 23,102,517.39
| 55,035,910.31 |
Deferred income 66,134,567.35
| 67,315,337.57 |
Deferred income tax liabilities 2,858,108.51
| 6,102,908.01 |
Other non-current liabilities
Total non-current liabilities 279,271,149.10
| 327,257,121.88 | ||
| Total liabilities | 6,766,086,340.90 | 7,463,481,709.61 |
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 | 2,753,134,052.79 | 2,753,137,787.99 |
| Less: Inventory shares | 16,958,477.28 | 9,929,336.18 |
Other comprehensive income
-
Special reserve
Surplus reserve 416,146,624.75
| 416,146,624.75 |
Retained profit 955,808,150.16
| 943,879,339.46 |
Total owner’s equity 5,152,728,231.42
| 5,147,832,297.02 | ||
| Total liabilities and owner’s equity | 11,918,814,572.32 | 12,611,314,006.63 |
Legal Representative: Wu DinggangPerson in charge of accounting works: Pang HaitaoPerson in charge of accounting institute: Yang Jun
3. Consolidated Profit Statement
In RMB
Item semi-annual of 2021 semi-annual of 2020I. Total operating income 9,602,759,345.29
| 6,795,860,736.99 |
Including: Operating income 9,602,759,345.29
| 6,795,860,736.99 |
Interest income
Insurance gained
| Commission charge and commission income |
II. Total operating cost 9,556,489,547.17
| 7,023,628,758.57 |
Including: Operating cost 8,177,231,196.17
| 5,753,849,889.35 |
Interest expense
Commission charge and commission expense
Cash surrender value
| Net amount of expense of compensation | ||
| Net amount of withdrawal of insurance contract reserve |
Bonus expense of guarantee slip
Reinsurance expense
Tax and extras 61,077,730.97
| 55,304,713.23 |
Sales expense 984,805,928.94
| 923,983,428.23 |
Administrative expense 152,957,426.98
| 135,469,692.92 | ||
| R&D expense | 186,113,254.21 | 167,889,148.89 |
| Financial expense | -5,695,990.10 | -12,868,114.05 |
Including: Interest expenses 37,292,383.25
| 45,498,046.65 |
Interest income 62,433,816.96
| 74,784,016.69 |
Add: Other income 57,250,100.93
| 54,852,125.20 |
Investment income (Loss is listed with “-”) 52,533,705.90
| 7,151,886.26 |
venture
-16,047,810.77
| Including: Investment income on affiliated company and joint | 209,880.54 |
The termination of income recognition for financialassets measured by amortized cost
Exchange income (Loss is listed with “-”)
Net exposure hedging income (Loss is listed with “-”)
Income from change of fair value (Loss is listed with “-”) -9,731,654.29
-
| 9,724,752.12 |
Loss of credit impairment (Loss is listed with “-”) -15,121,003.89
-
| 22,270,221.19 | ||
| Losses of devaluation of asset (Loss is listed with “-”) | -43,310,366.42 | -26,583,248.58 |
| Income from assets disposal (Loss is listed with “-”) | -208,978.90 | -178,704.98 |
III. Operating profit (Loss is listed with “-”) 87,681,601.45
-
| 224,520,936.99 |
Add: Non-operating income 5,862,320.71
| 3,445,609.21 |
Less: Non-operating expense 760,592.62
| 959,554.13 |
IV. Total profit (Loss is listed with “-”) 92,783,329.54
-
| 222,034,881.91 |
Less: Income tax expense 37,086,971.38
-
| 2,863,011.42 | ||
| V. Net profit (Net loss is listed with “-”) | 55,696,358.16 | -219,171,870.49 |
| (i) Classify by business continuity |
1.continuous operating net profit (net loss listed with ‘-”) 55,696,358.16
-
| 219,171,870.49 |
2.termination of net profit (net loss listed with ‘-”)
(ii) Classify by ownership 1.Net profit attributable to owner’s of parent company 37,157,511.54
-
| 210,130,580.93 | ||
| 2.Minority shareholders’ gains and losses | 18,538,846.62 | -9,041,289.56 |
| VI. Net after-tax of other comprehensive income | -1,257,750.59 | -1,009,706.23 |
Net after-tax of other comprehensive income attributable to ownersof parent company
-1,271,363.35
-
| 630,002.84 | ||
| (I) Other comprehensive income items which will not be |
reclassified subsequently to profit of loss
1.Changes of the defined benefit plans that re-measured
| 2.Other comprehensive income under equity method that |
cannot be transfer to gain/loss
3.Change of fair value of investment in other equity
instrument
4.Fair value change of enterprise's credit risk
5. Other
(ii) Other comprehensive income items which will be reclassifiedsubsequently to profit or loss
-1,271,363.35
-
| 630,002.84 |
1.Other comprehensive income under equity method that
can transfer to gain/loss
-177,046.32
2.Change of fair value of other debt investment
3.Amount of financial assets re-classify to other
comprehensive income
4.Credit impairment provision for other debt investment
5.Cash flow hedging reserve
6.Translation differences arising on translation of foreign
currency financial statements
-1,094,317.03
-
| 630,002.84 |
7.Other
Net after-tax of other comprehensive income attributable to minorityshareholders
13,612.76
-
| 379,703.39 |
VII. Total comprehensive income 54,438,607.57
-
| 220,181,576.72 |
Total comprehensive income attributable to owners of parentCompany
35,886,148.19
-
| 210,760,583.77 |
Total comprehensive income attributable to minority shareholders 18,552,459.38
-
| 9,420,992.95 |
VIII. Earnings per share:
(i) Basic earnings per share 0.0356
-
| 0.2012 |
(ii) Diluted earnings per share 0.0356
-
| 0.2012 |
As for the enterprise combined under the same control, net profit of 0 Yuan achieved by the merged party before combinationwhile 0 Yuan achieved last periodLegal Representative: Wu DinggangPerson in charge of accounting works: Pang HaitaoPerson in charge of accounting institute: Yang Jun
4. Profit Statement of Parent Company
In RMBItem Semi-annual of 2021 Semi-annual of 2020I. Operating income 3,975,751,904.29
| 3,213,963,833.18 |
Less: Operating cost 3,701,614,201.55
| 3,022,119,390.15 | ||
| Taxes and surcharge | 21,839,365.11 | 30,342,788.85 |
| Sales expenses | 99,271,533.62 | 110,175,334.78 |
| Administration expenses | 56,254,420.78 | 56,166,016.62 |
R&D expenses 72,054,454.73
| 70,182,219.29 |
Financial expenses -4,429,587.19
-
| 15,767,670.19 |
Including: Interest expenses 29,845,405.90
| 37,724,956.37 |
Interest income 39,962,405.83
| 62,490,589.12 |
Add: Other income 36,911,268.50
| 37,653,498.87 | ||
| Investment income (Loss is listed with “-”) | 37,411,973.74 | 77,837,668.60 |
Including: Investment income on affiliated Company andjoint venture
-15,045,065.49
| 2,738,300.44 | ||
| The termination of income recognition for financial |
assets measured by amortized cost (Loss is listed with “-”)
Net exposure hedging income (Loss is listed with “-”)
| Changing income of fair value (Loss is listed with “-”) | -21,631,996.66 | -7,780,805.90 |
Loss of credit impairment (Loss is listed with “-”) -528,447.83
-
| 5,196,835.46 |
Losses of devaluation of asset (Loss is listed with “-”) -3,955,719.18
-
| 5,212,993.91 |
Income on disposal of assets (Loss is listed with “-”) -82,639.64
-
| 319,589.42 |
II. Operating profit (Loss is listed with “-”) 77,271,954.62
| 37,726,696.46 |
Add: Non-operating income 2,299,511.52
| 1,382,900.11 | ||
| Less: Non-operating expense | 288,232.95 | - |
| III. Total Profit (Loss is listed with “-”) | 79,283,233.19 | 39,109,596.57 |
| Less: Income tax | 15,578,001.89 | -8,461,043.79 |
IV. Net profit (Net loss is listed with “-”) 63,705,231.30
| 47,570,640.36 |
(i) continuous operating net profit (net loss listed with ‘-”) 63,705,231.30
| 47,570,640.36 |
(ii) termination of net profit (net loss listed with ‘-”)
V. Net after-tax of other comprehensive income
| (i) Other comprehensive income items which will not be |
reclassified subsequently to profit of loss
1.Changes of the defined benefit plans that re-measured
| 2.Other comprehensive income under equity method that |
cannot be transfer to gain/loss
3.Change of fair value of investment in other equity
instrument
4.Fair value change of enterprise's credit risk
5. Other
(ii) Other comprehensive income items which will bereclassified subsequently to profit or loss
1.Other comprehensive income under equity method that
can transfer to gain/loss
| 2.Change of fair value of other debt investment |
3.Amount of financial assets re-classify to other
comprehensive income
| 4.Credit impairment provision for other debt investment |
5.Cash flow hedging reserve
currency financial statements
| 6.Translation differences arising on translation of foreign |
7.Other
VI. Total comprehensive income 63,705,231.30
| 47,570,640.36 |
VII. Earnings per share:
(i) Basic earnings per share 0.0610
| 0.0455 |
(ii) Diluted earnings per share 0.0610
| 0.0455 |
Legal Representative: Wu DinggangPerson in charge of accounting works: Pang HaitaoPerson in charge of accounting institute: Yang Jun
5. Consolidated Cash Flow Statement
In RMB
| Item | Semi-annual of 2021 | Semi-annual of 2020 |
I. Cash flows arising from operating activities:
Cash received from selling commodities and providing labor services 8,512,320,086.90
| 6,157,786,632.53 |
Net increase of customer deposit and interbank deposit
Net increase of loan from central bank
Net increase of capital borrowed from other financial institution
| Cash received from original insurance contract fee | ||
| Net cash received from reinsurance business |
Net increase of insured savings and investment
Cash received from interest, commission charge and commission
Net increase of capital borrowed
Net increase of returned business capital
Net cash received by agents in sale and purchase of securities
| Write-back of tax received | 316,502,790.54 | 251,421,150.31 |
Other cash received concerning operating activities 79,642,427.61
| 74,202,707.99 |
Subtotal of cash inflow arising from operating activities 8,908,465,305.05
| 6,483,410,490.83 |
Cash paid for purchasing commodities and receiving labor service 7,728,511,418.75
| 5,671,705,593.94 |
Net increase of customer loans and advances
Net increase of deposits in central bank and interbank
| Cash paid for original insurance contract compensation | ||
| Net increase of capital lent |
Cash paid for interest, commission charge and commission
Cash paid for bonus of guarantee slip
Cash paid to/for staff and workers 860,117,506.67
| 671,140,486.91 |
Taxes paid 145,836,080.82
| 122,903,758.87 | ||
| Other cash paid concerning operating activities | 762,496,415.63 | 405,765,609.52 |
Subtotal of cash outflow arising from operating activities 9,496,961,421.87
| 6,871,515,449.24 |
Net cash flows arising from operating activities -588,496,116.82
-
| 388,104,958.41 |
II. Cash flows arising from investing activities:
Cash received from recovering investment 700,000,000.00
| 185,000,000.00 |
Cash received from investment income 6,856,855.12
| 10,469,068.45 | ||
| Net cash received from disposal of fixed, intangible and other long- |
term assets
| 1,095,433.16 | 210,271.10 |
Net cash received from disposal of subsidiaries and other units
| Other cash received concerning investing activities | 138,387,471.00 | 68,390,962.53 |
| Subtotal of cash inflow from investing activities | 846,339,759.28 | 264,070,302.08 |
Cash paid for purchasing fixed, intangible and other long-term assets 125,772,890.37
| 234,361,940.15 |
Cash paid for investment 1,420,000,000.00
| 735,280,051.17 |
Net increase of mortgaged loans
Net cash received from subsidiaries and other units obtained
Other cash paid concerning investing activities 47,506.93
-
| Subtotal of cash outflow from investing activities | 1,545,820,397.30 | 969,641,991.32 |
| Net cash flows arising from investing activities | -699,480,638.02 | -705,571,689.24 |
III. Cash flows arising from financing activities:
Cash received from absorbing investment 15,000,000.00
-
Including: Cash received from absorbing minority shareholders’investment by subsidiaries
15,000,000.00
-
Cash received from loans 934,661,487.16
| 1,460,006,749.33 |
Other cash received concerning financing activities 4,675,857.30
-
Subtotal of cash inflow from financing activities 954,337,344.46
| 1,460,006,749.33 |
Cash paid for settling debts 1,232,876,410.00
| 863,778,688.78 | ||
| Cash paid for dividend and profit distributing or interest paying | 66,120,511.52 | 93,535,991.73 |
| Including: Dividend and profit of minority shareholder paid by |
subsidiaries
| 1,598,892.00 | 4,796,676.00 | |
| Other cash paid concerning financing activities | 11,341,697.18 | 930,211.84 |
| Subtotal of cash outflow from financing activities | 1,310,338,618.70 | 958,244,892.35 |
Net cash flows arising from financing activities -356,001,274.24
| 501,761,856.98 |
IV. Influence on cash and cash equivalents due to fluctuation in exchangerate
-14,000,285.27
-
| 1,424,516.77 | ||
| V. Net increase of cash and cash equivalents | -1,657,978,314.35 | -593,339,307.44 |
Add: Balance of cash and cash equivalents at the period -begin 6,425,529,815.10
| 5,385,807,475.51 |
VI. Balance of cash and cash equivalents at the period -end 4,767,551,500.75
| 4,792,468,168.07 |
Legal Representative: Wu DinggangPerson in charge of accounting works: Pang HaitaoPerson in charge of accounting institute: Yang Jun
6. Cash Flow Statement of Parent Company
In RMB
Item Semi-annual of 2021 Semi-annual of 2020I. Cash flows arising from operating activities:
Cash received from selling commodities and providing laborservices
3,289,172,496.97
| 3,141,710,817.95 |
Write-back of tax received 161,887,225.42
| 107,087,533.56 |
Other cash received concerning operating activities 52,318,868.30
| 47,856,925.29 |
Subtotal of cash inflow arising from operating activities 3,503,378,590.69
| 3,296,655,276.80 | ||
| Cash paid for purchasing commodities and receiving labor |
service
| 3,656,146,099.06 | 2,941,987,065.27 |
Cash paid to/for staff and workers 234,676,912.75
| 161,430,366.15 | ||
| Taxes paid | 26,688,550.76 | 33,476,947.97 |
| Other cash paid concerning operating activities | 313,451,006.32 | 141,140,278.49 |
Subtotal of cash outflow arising from operating activities 4,230,962,568.89
| 3,278,034,657.88 |
Net cash flows arising from operating activities -727,583,978.20
| 18,620,618.92 |
II. Cash flows arising from investing activities:
Cash received from recovering investment 700,000,000.00
| 150,000,000.00 |
Cash received from investment income 7,992,927.12
| 78,655,551.41 | ||
| Net cash received from disposal of fixed, intangible and other |
long-term assets
| 867,706.09 | 193,300.00 |
Net cash received from disposal of subsidiaries and other units
-
| Other cash received concerning investing activities | 94,536,857.03 | 54,966,416.09 |
| Subtotal of cash inflow from investing activities | 803,397,490.24 | 283,815,267.50 |
Cash paid for purchasing fixed, intangible and other long-termassets
71,849,222.83
| 75,044,489.91 | ||
| Cash paid for investment | 1,455,000,000.00 | 835,280,049.17 |
Net cash received from subsidiaries and other units obtained
-
Other cash paid concerning investing activities 102,662.47
-
Subtotal of cash outflow from investing activities 1,526,951,885.30
| 910,324,539.08 |
Net cash flows arising from investing activities -723,554,395.06
-
| 626,509,271.58 |
III. Cash flows arising from financing activities:
| Cash received from absorbing investment | ||
| Cash received from loans | 924,661,487.16 | 1,058,647,533.33 |
Other cash received concerning financing activities 170,670,545.80
| 9,652,301.36 |
Subtotal of cash inflow from financing activities 1,095,332,032.96
| 1,068,299,834.69 |
Cash paid for settling debts 1,149,699,750.00
| 614,397,944.82 |
Cash paid for dividend and profit distributing or interest paying 63,099,086.76
| 83,234,428.66 |
Other cash paid concerning financing activities 146,209,276.30
| 166,648,785.81 | ||
| Subtotal of cash outflow from financing activities | 1,359,008,113.06 | 864,281,159.29 |
| Net cash flows arising from financing activities | -263,676,080.10 | 204,018,675.40 |
IV. Influence on cash and cash equivalents due to fluctuation inexchange rate
-5,782,949.41
| 182,509.41 | ||
| V. Net increase of cash and cash equivalents | -1,720,597,402.77 | -403,687,467.85 |
Add: Balance of cash and cash equivalents at the period -begin 4,597,503,833.78
| 4,017,400,437.18 |
VI. Balance of cash and cash equivalents at the period -end 2,876,906,431.01
| 3,613,712,969.33 |
Legal Representative: Wu DinggangPerson in charge of accounting works: Pang HaitaoPerson in charge of accounting institute: Yang Jun
7. Statement of Changes in Owners’ Equity (Consolidated)
Current Amount
In RMB
Item
Semi-annual of 2021Owners’ equity attributable to the parent Company
Minorityinterests
Total owners’equityShare capital
Otherequityinstrument
Capital reserve
Less:
Inventoryshares
Othercomprehensiveincome
Reasonablereserve
Surplus reserve
Provisionofgeneralrisk
Retained profit
Other
SubtotalPreferredstock
Perp
| etual |
capit
alsecurities
OtherI. The ending balance ofthe previous year
1,044,597,881.00
2,683,837,229.12
9,929,336.18
-21,451,084.17
416,364,790.43
740,754,202.23
4,854,173,682.43
107,921,283.49
4,962,094,965.92
| Add: Changes of |
accounting policy
Error correction of thelast period
Enterprise combineunder the same control
Other
II. The beginningbalance of the currentyear
1,044,597,881.00
2,683,837,229.12
9,929,336.18
-21,451,084.17
416,364,790.43
740,754,202.23
4,854,173,682.43
107,921,283.49
4,962,094,965.92
| III. Increase/ Decrease in |
the period (Decrease islisted with “-”)
| -3,735.20 | 7,029,141.10 | -1,271,363.35 | -14,618,909.06 | -22,923,148.71 | 31,953,567.38 | 9,030,418.67 |
(i) Total comprehensiveincome
-1,271,363.35
37,157,511.54
35,886,148.19
18,552,459.38
54,438,607.57
(ii) Owners’ devoted anddecreased capital
-3,735.20
7,029,141.10
-7,032,876.30
15,000,000.00
7,967,123.70
1.Common shares
| -3,735.20 | 7,029,141.10 | -7,032,876.30 | 15,000,000.00 | 7,967,123.70 |
invested by shareholders
2. Capital invested by
holders of other equityinstruments
| invested by shareholders | |||||||||||||||
3. Amount reckoned into
owners equity withshare-based payment
| 4. Other |
(iii) Profit distribution
-51,776,420.60
-51,776,420.60
-1,598,892.00
-53,375,312.60
1. Withdrawal of surplus
reserves
2. Withdrawal of general
risk provisions
-51,776,420.60
-51,776,420.60
-1,598,892.00
-53,375,312.60
| 3. Distribution for |
owners (or shareholders)
4. Other
| (iv) Carrying forward |
internal owners’ equity
1. Capital reserves
conversed to capital(share capital)
2. Surplus reserves
conversed to capital(share capital)
3. Remedying loss with
surplus reserve
4. Carry-over retained
earnings from thedefined benefit plans
| 5. Carry-over retained |
earnings from othercomprehensive income
6. Other
(v) Reasonable reserve
1. Withdrawal in the
report period
2. Usage in the report
period
| 2. Usage in the report |
(vi) Others
| IV. Balance at the end of |
the period
| 1,044,597,881.00 | 2,683,833,493.92 | 16,958,477.28 | -22,722,447.52 | 416,364,790.43 | 726,135,293.17 | 4,831,250,533.72 | 139,874,850.87 | 4,971,125,384.59 |
Amount of the previous period
In RMB
Item
Owners’ equity attributable to the parent Company
Minorityinterests
Total owners’equityShare capital
Otherequity instrument
Capital reserve
Less:
Inventory shares
Othercomprehensive
income
Reasonabl
ereserve
Semi-annual of 2020
Surplus reserve
Prov
| ision |
ofgeneralrisk
Retained profit
Other
SubtotalPreferr
edstock
Perpet
ual
securitiesOthe
r
| capital | ||
| I. The ending balance |
of the previous year
| 1,044,597,881.00 | 2,684,366,619.10 | -18,931,430.36 | 410,786,860.20 | 884,127,743.42 | 5,004,947,673.36 | 107,027,038.74 | 5,111,974,712.10 | ||||||||
| Add: Changes of |
accounting policy
Error correction of thelast period
Enterprise combineunder the same control
Other
II. The beginningbalance of the currentyear
1,044,597,881.00
2,684,366,619.10
-18,931,430.36
410,786,860.20
884,127,743.42
5,004,947,673.36
107,027,038.74
5,111,974,712.10
| III. Increase/ Decrease |
in the period (Decreaseis listed with “-”)
| -559,888.62 | -630,002.84 | -262,360,474.98 | -263,550,366.44 | -14,537,831.49 | -278,088,197.93 | ||||||||||
| (i) Total comprehensive |
income
-630,002.84
-210,130,580.93
-210,760,583.77
-9,420,992.95
-220,181,576.72
(ii) Owners’ devotedand decreased capital
-559,888.62
-559,888.62
279,839.46
-280,049.16
1.Common shares
invested byshareholders
| 1.Common shares |
2. Capital invested by
holders of other equityinstruments
| 3. Amount reckoned into owners equity with |
share-based payment
4. Other
-559,888.62
-559,888.62
279,839.46
-280,049.16
(iii) Profit distribution
-52,229,894.05
-52,229,894.05
-5,396,678.00
-57,626,572.05
1. Withdrawal of
surplus reserves
2. Withdrawal of
general risk provisions
3. Distribution for
owners (orshareholders)
-52,229,894.05
-52,229,894.05
-4,796,678.00
-57,026,572.05
4. Other
-600,000.00
-600,000.00
| (iv) Carrying forward |
internal owners’ equity
1. Capital reserves
conversed to capital(share capital)
2. Surplus reserves
conversed to capital(share capital)
| 3. Remedying loss with |
surplus reserve
4. Carry-over retained
earnings from thedefined benefit plans
5. Carry-over retained
earnings from othercomprehensive income
6. Other
(v) Reasonable reserve
1. Withdrawal in the
report period
| 1. Withdrawal in the |
2. Usage in the report
period
(vi) Others
IV. Balance at the endof the period
1,044,597,881.00
2,683,806,730.48
-19,561,433.20
410,786,860.20
621,767,268.44
4,741,397,306.92
92,489,207.25
4,833,886,514.17
Legal Representative: Wu DinggangPerson in charge of accounting works: Pang HaitaoPerson in charge of accounting institute: Yang Jun
8. Statement of Changes in Owners’ Equity (Parent Company)
Current Amount
In RMBItem
Semi-annual of 2021Share capital
Otherequity instrument
Capital reserve
Less: Inventory
shares
Othercomprehe
nsive
income
Reasonable reserve
Surplus reserve Retained profitOther
Total owners’
equityPreferred
stock
| stock | Perpetual capital securities |
Othe
I. The ending balance of theprevious year
1,044,597,881.00
| r | |||
2,753,137,787.99
9,929,336.18
416,146,624.75
943,879,339.46
| 5,147,832,297.02 |
Add: Changes of accountingpolicy
| Error correction of the last |
period
Other
| II. The beginning balance of the |
current year
| 1,044,597,881.00 | 2,753,137,787.99 | 9,929,336.18 | 416,146,624.75 | 943,879,339.46 | 5,147,832,297.02 |
III. Increase/ Decrease in the
| period (Decrease is listed with “- |
-3,735.20
7,029,141.10
11,928,810.70
| 4,895,934.40 |
”)
(i) Total comprehensive income
| ”) | |||||||||
63,705,231.30
| 63,705,231.30 |
(ii) Owners’ devoted anddecreased capital
-3,735.20
7,029,141.10
-
| 7,032,876.30 | ||
| 1.Common shares invested by |
shareholders
| -3,735.20 | 7,029,141.10 | -7,032,876.30 | ||||||||||
| 2. Capital invested by holders of |
other equity instruments
3. Amount reckoned into owners
equity with share-based payment
4. Other
(iii) Profit distribution
-51,776,420.60
-
1. Withdrawal of surplus reserves
| 51,776,420.60 | ||||||||||||
| 2. Distribution for owners (or |
shareholders)
| -51,776,420.60 | -51,776,420.60 |
3. Other
| (iv) Carrying forward internal |
owners’ equity
1. Capital reserves conversed to
capital (share capital)
2. Surplus reserves conversed to
capital (share capital)
3. Remedying loss with surplus
reserve
| 4. Carry-over retained earnings |
from the defined benefit plans
| 5. Carry-over retained earnings |
from other comprehensiveincome
6. Other
(v) Reasonable reserve
1. Withdrawal in the report period
| 2. Usage in the report period | ||||||||||||
| (vi) Others |
IV. Balance at the end of the
period
| IV. Balance at the end of the | 1,044,597,881.00 | 2,753,134,052.79 | 16,958,477.28 | 416,146,624.75 | 955,808,150.16 | 5,152,728,231.42 |
Amount of the previous period
In RMBItem
Semi-annual of 2020Share capital
Otherequity instrument
Capital reserve
Less:
Inventory
shares
Othercomprehe
nsive
income
Reasonable reserve
Surplus reserve Retained profitOther
Total owners’
equityPreferr
ed
Perpetualcapital
| stock | securities |
Other
| I. The ending balance of the previous year | 1,044,597,881.00 | 2,753,017,007.10 | 410,568,694.52 | 945,907,861.41 | 5,154,091,444.03 |
Add: Changes of accounting policy
Error correction of the last period
Other
II. The beginning balance of the current year 1,044,597,881.00
2,753,017,007.10
410,568,694.52
945,907,861.41
5,154,091,444.03
III.
| Increase/ Decrease in the period (Decrease |
is listed with “-”)
-4,659,253.69
-4,659,253.69
(i) Total comprehensive income
47,570,640.36
47,570,640.36
(ii) Owners’ devoted and decreased capital
| 1.Common shares invested by shareholders | ||||||||||||
| 2. Capital invested by holders of other equity |
instruments
3. Amount reckoned into owners equity with
share-based payment
4. Other
(iii) Profit distribution
-52,229,894.05
-52,229,894.05
| 1. Withdrawal of surplus reserves | ||||||||||||
| 2. Distribution for owners (or shareholders) | -52,229,894.05 | -52,229,894.05 |
3. Other
(iv) Carrying forward internal owners’ equity
1. Capital reserves conversed to capital (share
capital)
2. Surplus reserves conversed to capital (share
capital)
| 2. Surplus reserves conversed to capital (share |
3. Remedying loss with surplus reserve
| 4. Carry-over retained earnings from the |
defined benefit plans
5. Carry-over retained earnings from other
comprehensive income
6. Other
(v) Reasonable reserve
| 1. Withdrawal in the report period | ||||||||||||
| 2. Usage in the report period | ||||||||||||
| (vi) Others |
IV. Balance at the end of the period 1,044,597,881.00
2,753,017,007.10
410,568,694.52
941,248,607.72
5,149,432,190.34
Legal Representative: Wu DinggangPerson in charge of accounting works: Pang HaitaoPerson in charge of accounting institute: Yang Jun
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
I. Company profileChanghong Meiling Co., Ltd (hereinafter referred to as “the Company”) ，originally named as Hefei MeilingCo., Ltd. is an incorporated Company established and reorganized by Hefei Meiling Refrigerator GeneralFactory and approved on June 12
th1992 through [WanTiGaiHanZi (1992) No.039] issued by originalMechanism Reform Committee of Anhui Province. On August 30
th1993, through Anhui ProvincialGovernment [Wanzhenmi (1993) No.166] and re-examination of China Securities Regulatory Commission,the Company made first public issue for 30 million A shares and the Company was listed on Oct. 18
th
, 1993in Shenzhen Stock Exchange. On August 13
th
, 1996, the Company was approved to issue 100 million Bshares to investors abroad through [ZhengWeiFa (1996) No.26] issued by China Securities RegulatoryCommission. The Company went public in Shenzhen Stock Exchange on August 28
th, 1996.
State-owned Assets Supervision & Administration Commission of the State Council approved such transferswith Document Guozi Chanquan (2007) No.253 Reply on Matters of Hefei Meiling Group Holdings LimitedTransferring Partial State-owned Ownership, Hefei Meiling Group Holdings Limited (hereinafter referred toas Meiling Group) transferred its holding 37,852,683 shares in 82,852,683 state-owned shares of theCompany to Sichuan Changhong Electronic Group Co., Ltd (hereinafter referred to as Changhong Group),other 45,000,000 shares to Sichuan Changhong Electric Co. Ltd (hereinafter referred to as SichuanChanghong). On Aug 15, 2007, the above ownership was transferred and Cleaning Corporation Limited.
On 27 August 2007, State-owned Assets Supervision & Administration Commission of Anhui ProvincialGovernment replied with Document [WGZCQH (2007) No.309] Reply on “Related Matters of Share MergerReform of Hefei Meiling Co., Ltd.”, agreed the Company’s ownership split reform plan. The Company madeconsideration that non-tradable share holders deliver 1.5 shares to A share holders per 10 shares, and originalMeiling Group made prepayment 3,360,329 shares for some non-tradable share holders as consideration forsplit reform plan.On 29 May 2008, concerning 34,359,384 state-owned shares (including 3,360,329 shares paid for other non-tradable shareholders by original Meiling Group in share reform) held by original Meiling Group, the“Notice of Freely Transfer of Meiling Electrics Equity held by Meiling Group”[HGZCQ(2008) No. 59]issued from State-owned Assets Supervision & Administration Commission of Hefei Municipal, agrees totransfer the above said shares to Hefei Xingtai Holding Group Co., Ltd.(“Xingtai Holding Co.,”) for free. On7 August 2008, the “Reply of Transfer Freely of Part of the Shares of Hefei Meiling Co., Ltd. held by State-owned shareholders” [GZCQ (2007) No. 752] issued by SASAC, agrees the above said transferring.On October 29, 2008, Changhong Group signed Agreement on Equity Transfer of Hefei Meiling Co., Ltdwith Sichuan Changhong, in which 32,078,846 tradable A-shares with conditional subscription of theCompany (accounting for 7.76% in total shares) held by Changhong Group. On 23 December 2008, “Replyof Transfer Freely of Part of the Shares of Hefei Meiling Co., Ltd. held by State-owned shareholders”[GZCQ (2008) No. 1413] issued by SASAC agrees the above said share transferring.
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
On 24 December 2010, being deliberated and approved in 32
nd Session of 6
th BOD and 2
ndExtraordinaryShareholders’ General Meeting of 2010 as well as approval of document [ZJXK (2010) No. 1715] fromCSRC, totally 116,731,500 RMB ordinary shares (A stock) were offering privately to target investors withissue price of RMB 10.28/share. Capital collecting amounting to RMB 1,199,999,820 after issuing expensesRMB 22,045,500 deducted, net capital collected amounting to RMB 1,177,954,320, and paid-in capital(share capital) increased RMB 116,731,500 with capital reserve (share premium) RMB 1,061,106,088.5increased. The increasing capital has been verified by Capital Verification Report No.:
［XYZH2010CDA6021］issued from Shin Wing CPA Co., Ltd.
On 20 June 2011, the general meeting of the Company considered and approved the 2010 profit distributionplan, namely to distribute cash dividends of RMB0.5 (tax included) plus two shares for every ten shares heldby shareholders to all shareholders, based on the total share capital of 530,374,449 shares as of 31 December2010. The total share capital of the Company upon profit distribution increased to 636,449,338 shares. Thecapital increase was verified by Anhui Huashen Zhengda Accounting Firm with the verification reportWHSZDKYZ (2011) No.141.
On 26 June 2012, the general meeting of the Company considered and approved the 2011 profit distributionand capitalization of capital reserve plan, namely to distribute cash dividends of RMB 0.5 (tax included) plustwo shares for every ten shares to all shareholders capitalized from capital reserve, based on the total sharecapital of 636,449,338 shares as of 31 December 2011. The total share capital of the Company uponimplementation of capitalization of capital reserve increased to 763,739,205 shares from 636,449,338 shares,and was verified by Anhui Anlian Xinda Accounting Firm with the verification report WALXDYZ (2012)No.093.
On November 18, 2015, considered and approved by the 12
th Session of the 8
thBOD of the company and thefirst extraordinary general meeting in 2016, and approved by the document of China Securities RegulatoryCommission [CSRC License No. (2016) 1396] “Reply to the approval of non-public offering of shares ofHefei Meiling Co., Ltd.”, the company has actually raised funds of 1,569,999,998.84 Yuan by non-publicoffering of no more than 334,042,553 new shares at face value of 1 Yuan per share and with issue price noless than RMB 4.70 per share, after deducting the issue costs of 29,267,276.08 Yuan , the net amount ofraised funds is 1,540,732,722.76 Yuan , the increased paid-in capital (share capital) of 280,858,676.00 Yuan ,increased capital reserve (share premium) of 1,259,874,046.76 Yuan. This capital increase has been verifiedby No.［XYZH2016CDA40272］capital verification report of Shine Wing Certified Public Accountants(LLP).
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
Ended as 30 June 2021, total share capital of the Company amounting to 1,044,597,881 shares with ordinaryshares in full. Among which, 881,733,881 shares of A-share accounting 84.41% in total shares while B-sharewith 162,864,000 shares accounting 15.59% in total shares. Detail share capital as:
Type of stock Quantity Proportion(I)Restricted shares
8,442,922 0.81%
1. State-owned shares
2. State-owned legal person’s shares
1,653,735 0.16%
3. Other domestic shares
5,521,767 0.53%
Including: Domestic legal person’s
shares
3,978,329 0.38%
| Including: Domestic legal person’s |
| Domestic natural person’s |
shares
1,543,438 0.15%
4. Foreign shares 1,267,420 0.12%Including: Overseas legal person’s shares
Overseas natural person’s shares 1,267,420 0.12%
(II)Unrestricted shares
1,036,154,959 99.19%
| (II)Unrestricted shares |
| 1. RMB Ordinary shares |
874,558,379 83.72%
161,596,580 15.47%
| 2. Domestically listed foreign shares |
| 3. Overseas listed foreign shares |
Total shares 1,044,597,881 100.00%
The Company belongs to the manufacture of light industry, and engaged in the production and sale ofrefrigerator, freezer and air-conditioner. Unified social credit code of the Company: 9134000014918555XK;Address: No.2163, Lianhua Road, Economy and Technology Development Zone, Hefei City; LegalRepresentative: Wu Dinggang; register capital (paid-in capital): 1,044,597,881 Yuan; type of company:
limited liability company(joint venture and listed of Taiwan, Hong Kong and Macao) Business Scope: R&D,manufacture and sales of cooling apparatus, air-conditioner, washing machine, water heater, kitchenware,home decoration, bathroom, lamps & lanterns, household & similar appliance, injection plastic machine ofcomputer controlling, plastic products, metalwork, packaging products and decorations as well as theinstallation and technical consultant services. Business of self-produced products, technology export andimport-export of the raw& auxiliary materials, machinery equipment, instrument and technology; departmentsales and transportation (Excluding dangerous chemicals), computer network system integration, intelligentproduct system integration, software development and technical information services, development,production, sales and service of automation equipment and electronic products, sales services of cold chaintransport vehicles and refrigerator and freezer van, development, production, sales and service of cold chaininsulation boxes, research and development, production, sales and service of cold storage, commercialfreezer chain display cabinets, commercial cold chain products. (Projects that require approval in accordancewith the law can only be operated after approval by relevant departments)
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
II. Scope of consolidated financial statementIn the reporting period, the consolidated financial statements of the Company cover 30 subsidiaries,including Sichuan Changhong Air-conditioner Co., Ltd, Zhongshan Changhong Electric Co., Ltd. andZhongke Meiling Cryogenic Technology Co., Ltd. etc. Compared with the previous year, one new subsidiaryincludes in the consolidated financial statement- Anhui Ling'an Medical Equipment Co., Ltd.More details can be seen in the report “VII. Changes in the scope of the merger” and “XIII. Equity in otherentities”carry in the Note
III. Basis for preparation of financial statement
1. Basis for preparation
The financial statements of the Company were prepared in accordance with the actual transactions andproceedings, and relevant regulation of Accounting Standards for Business Enterprise released by theMinistry of Finance, and was on the basis of sustainable operation, and the accounting policy and estimationstated in the “IV. Significant Accounting Policy and Accounting Estimation”
2.Continuous operation
The Company recently has a history of profitability operation and has financial resources supporting, andprepared the financial statement on basis of going concern is reasonable.
IV. Significant Accounting Policy and accounting Estimation
1. Statement on observation of accounting standards for enterprise
The financial statement prepared by the Company applies with the requirements of Accounting Standard forBusiness Enterprise, and reflects the financial condition, operational achievements and cash flow of theCompany effectively and completely.
2. Accounting period
The accounting period of the Company is the calendar date from 1 January to 31 December.
3. Operation cycle
Operation cycle of the Company was 12 months, and it is the standard of flow classification for assets andliabilities.
4. Standard currency for accounting
The Company takes RMB as the standard currency for accounting.
5. Accountant arrangement method of business combination under common control and not under common
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
controlAs acquirer, the Company measures the assets and liabilities acquired through business combination undercommon control at their carrying values as reflected in the consolidated financial statement of the ultimatecontroller as of the combination date. Capital reserve shall be adjusted in respect of any difference betweencarrying value of the net assets acquired and carrying value of the combination consideration paid. In casethat capital reserve is insufficient to offset, the Company would adjust retained earnings.
The acquiree’s net identifiable assets, liabilities or contingent liabilities acquired through businesscombination not under common control shall be measured at fair value as of the acquisition date. The cost ofcombination represents the fair value of the cash or non-cash assets paid, liabilities issued or committed andequity securities issued by the Company as at the date of combination in consideration for acquiring thecontrolling power in the acquiree, together with the sum of any directly related expenses occurred duringbusiness combination(in case of such business combination as gradually realized through varioustransactions, the combination cost refers to the sum of each cost of respective separate transaction). Wherethe cost of the combination exceeds the acquirer’s interest in the fair value of the acquirer’s identifiable netassets acquired, the difference is recognized as goodwill; where the cost of combination is lower than theacquirer’s interest in the fair value of the acquiree’s identifiable net assets, the Company shall firstly makefurther review on the fair values of the net identifiable assets, liabilities or contingent liabilities acquired aswell as the fair value of the non-cash assets portion of combination consideration or the equity securitiesissued by the Company. In case that the Company finds the cost of combination is still lower than theacquirer’s interest in the fair value of the acquiree’s identifiable net assets after such further review, thedifference is recognized in non-operating income for the current period when combination occurs.
6. Measures on Preparation of Consolidated Financial Statements
The Company shall put all the subsidiaries controlled and main body structured into consolidated financialstatements.
Any difference arising from the inconformity of accounting year or accounting policies between thesubsidiaries and the Company shall be adjusted in the consolidated financial statements.
All the material inter-company transactions, non-extraordinary items and unrealized profit within thecombination scope are written-off when preparing consolidated financial statement. Owners’ equity ofsubsidiary not attributable to parent company and current net gains and losses, other comprehensive incomeand total comprehensive income attributable to minority shareholders are recognized as non-controllinginterests, minority interests, other comprehensive income attributable to minority shareholders and totalcomprehensive income attributable to minority shareholders in consolidated financial statement respectively.
As for subsidiary acquired through business combination under common control, its operating results andcash flow will be included in consolidated financial statement since the beginning of the period when
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
combination occurs. When preparing comparative consolidated financial statement, the relevant items inprevious years financial statement shall be adjusted as if the reporting entity formed upon combination hasbeen existing since the ultimate controller commenced relevant control.
As for equity interests of the investee under common control acquired through various transactions whicheventually formed business combination, the Company shall supplement disclosure of the accountingtreatment in consolidated financial statement in the reporting period when controlling power is obtained. Forexample, as for equity interests of the investee under common control acquired through various transactionswhich eventually formed business combination, adjustments shall be made as if the current status had beenexisting when the ultimate controller commenced control in connection of preparing consolidated financialstatement; in connection with preparing comparative statement, the Company shall consolidate the relevantassets and liabilities of the acquiree into the Company’s comparative consolidated financial statement to theextent not earlier than the timing when the Company and the acquiree are all under control of the ultimatecontroller, and the net assets increased due to combination shall be used to adjust relevant items underowners’ equity in comparative statement. In order to prevent double computation of the value of theacquiree’s net assets, the relevant profits and losses, other comprehensive income and change of other netassets recognized during the period from the date when the Company acquires original equity interests andthe date when the Company and the acquiree are all under ultimate control of the same party (whichever islater) to the date of combination in respect of the long-term equity investment held by the Company beforesatisfaction of combination shall be utilized to offset the beginning retained earnings and current gains andlosses in the period as the comparative financial statement involves, respectively.
As for subsidiary acquired through business combination not under common control, its operating results andcash flow will be included in consolidated financial statement since the Company obtains controlling power.When preparing consolidated financial statement, the Company shall adjust the subsidiary’s financialstatement based on the fair value of the various identifiable assets, liabilities or contingent liabilitiesrecognized as of the acquisition date.
As for equity interests of the investee not under common control acquired through various transactions whicheventually formed business combination, the Company shall supplement disclosure of the accountingtreatment in consolidated financial statement in the reporting period when controlling power is obtained. Forexample, as for equity interests of the investee not under common control acquired through varioustransactions which eventually formed business combination, when preparing consolidated financialstatement, the Company would re-measure the equity interests held in the acquiree before acquisition date attheir fair value as of the acquisition date, and any difference between the fair value and carrying value isincluded in current investment income. in case that the equity interests in acquiree held by the Companybefore the relevant acquisition date involves other comprehensive income at equity method and change ofother owners’ equity (other than net gains and losses, other comprehensive income and profit distribution),then the equity interests would transfer to investment gains and losses for the period which the acquisition
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
date falls upon. The other comprehensive income arising from change of the net liabilities or net assets underestablished benefit scheme as acquiree’s re-measured such scheme is excluded.
The transaction with non-controlling interest to dispose long-term equity investment in a subsidiary withoutlosing control rights over the subsidiary, the difference between the proceeds from disposal of interests andthe decrease of the shared net assets of the subsidiary is adjusted to capital premium (share premium). In casecapital reserve is not sufficient to offset the difference, retained earnings will be adjusted.
As for disposal of part equity investment which leads to losing control over the investee, the Company wouldre-measure the remaining equity interests at their fair value as of the date when the Company loses controlover the investee when preparing consolidated financial statement. The sum of consideration received fromdisposal of equity interest and fair value of the remaining equity interest, less the net assets of the originalsubsidiary attributable to the Company calculated based on the original shareholding proportion since theacquisition date or the date then consolidation commences, is included in investment gains and losses for theperiod when control is lost, meanwhile to offset goodwill. Other comprehensive income related to equityinterest investment in original subsidiaries is transferred into current investment gains and losses upon lost ofcontrol.If the disposal of the equity investment of a subsidiary is realized through multiple transactions until loss ofcontrol and is a package deal, the accounting treatment of these transactions should be dealt with as onetransaction of disposal of the subsidiary until loss of control. However, before the Company loses totalcontrol of the subsidiary, the differences between the actual disposal price and the share of the net assets ofthe subsidiary disposed of in every transaction should be recognized as other comprehensive income in theconsolidated financial statements, and transferred to profit or loss when losing control.
7. Accounting treatment for joint venture arrangement and joint controlled entity
The joint venture arrangement of the Company consists of joint controlled entity and joint venture. As forjointly controlled entity, the Company determines the assets held and liabilities assumed separately as a partyto the jointly controlled entity, recognizes such assets and liabilities according to its proportion, andrecognizes relevant income and expense separately under relevant agreement or according to its proportion.As for asset transaction relating to purchase and sales with the jointly controlled entity which does notconstitute business activity, part of the gains and losses arising from such transaction attributable to otherparticipators of the jointly controlled entity is only recognized.
8. Cash and cash equivalents
Cash in the cash flow statement comprises the Group’s cash on hand and deposits that can be readilywithdrawn on demand. Cash equivalents are short-term, highly liquid investments held by the Group, thatare readily convertible to known amounts of cash and which are subject to an insignificant risk of changes invalue, including but not limited to the followings which meet the aforesaid conditions: debt investmentmatured within three months upon the acquisition date, bank time deposit which can be early withdrew by
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
serving a notice and transferrable deposit receipt, etc. for time deposit which can not be used for payment atany time, it would be note recognized as cash; while if can be used for such purpose, it would be recognizedas cash. Guarantee deposit over three months in other monetary capital shall not be recognized as cashequivalents, and those less than three months are recognized as cash equivalents.
9. Foreign currency business and foreign currency financial statement conversion
(1) Foreign currency business
As for the foreign currency business, the Company converts the foreign currency amount into RMB amountpursuant to the spot exchange rate as of the business day. As at the balance sheet date, monetary itemsexpressed by foreign currency are converted into RMB pursuant to the spot exchange rate as of the balancesheet date. The conversion difference occurred is recorded into prevailing gains and losses, other than thedisclosure which is made according to capitalization rules for the exchange difference occurred from thespecial foreign currency borrowings borrowed for constructing and producing the assets satisfying conditionof capitalization. As for the foreign currency non-monetary items measured by fair value, the amount is thenconverted into RMB according to the spot exchange rate as of the confirmation day for fair value. And theconversion difference occurred during the procedure is recorded into prevailing gains and losses directly aschange of fair value. As for the foreign currency non-monetary items measured by historical cost, conversionis made with the spot exchange rate as of the business day, with no change in RMB amount.
(2) Conversion of foreign currency financial statement
Spot exchange rate as of the balance sheet date is adopted for conversion of assets and liabilities in foreigncurrency balance sheet; as for the items in statement of owners’ equity except for “Retained profit”,conversion is made pursuant to the spot exchange rate of business day; income and expense items in incomestatement then are also converted pursuant to the spot exchange rate of transaction day. Difference arisingfrom the aforementioned conversions shall be listed separately in items of owners’ equity. Spot exchange rateas of the occurrence date of cash flow is adopted for conversion of foreign currency cash flow. The amountof cash affected by exchange rate movement shall be listed separately in cash flow statement.
10. Financial assets and liabilities
A financial asset or liability is recognized when the group becomes a party to a financial instrument contract.The financial assets and financial liabilities are measured at fair value on initial recognition. For the financialassets and liabilities measured by fair value and with variation reckoned into current gains/losses, the relatedtransaction expenses are directly included in current gains or losses; for other types of financial assets andliabilities, the related transaction costs are included in the initial recognition amount.
(1) Method for determining the fair value of financial assets and financial liabilities
Fair value refers to the price that a market participant can get by selling an asset or has to pay for transferringa liability in an orderly transaction that occurs on the measurement date. For a financial instrument having anactive market, the Company uses the quoted prices in the active market to determine its fair value.
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
Quotations in an active market refer to prices that are readily available from exchanges, brokers, industryassociations, pricing services, etc., and represent the prices of market transactions that actually occur in anarm's length transaction. If there is no active market for a financial instrument, the Company uses valuationtechniques to determine its fair value. Valuation techniques include reference to prices used in recent markettransactions by parties familiar with the situation and through voluntary trade, and reference to current fairvalues of other financial instruments that are substantially identical, discounted cash flow methods, andoption pricing models.
(2) Category and measurement on financial assets
The group divided the financial assets as the follow while initially recognized: the financial assets measuredat amortized cost; the financial assets measured at fair value and whose changes are included in othercomprehensive income; and the financial assets measured by fair value and with variation reckoned intocurrent gains/losses. The classification of financial assets depends on the business model that the Group'senterprises manage the financial assets and the cash flow characteristics of the financial assets.
1) The financial assets measured at amortized cost
Financial assets are classified as financial assets measured at amortized cost when they also meet thefollowing conditions: The group's business model for managing the financial assets is to collect contractualcash flows; the contractual terms of the financial assets stipulate that cash flow generated on a specific date isonly paid for the principal and interest based on the outstanding principal amount. For such financial assets,the effective interest method is used for subsequent measurement according to the amortized cost, and thegains or losses arising from amortization or impairment are included in current profits and losses. Suchfinancial assets mainly include monetary funds, notes receivable, accounts receivable, other receivables, debtinvestment and long-term receivables, and so on. The Group lists the debt investment and long-termreceivables due within one year (including one year) from the balance sheet date as non-current assets duewithin one year, and lists the debt investment with time limit within one year (including one year) whenacquired as other current assets.
2) Financial assets measured at fair value and whose changes are included in other comprehensive income
Financial assets are classified as financial assets measured at fair value and whose changes are included inother comprehensive income when they also meet the following conditions: The Group's business model formanaging the financial assets is targeted at both the collection of contractual cash flows and the sale offinancial assets; the contractual terms of the financial asset stipulate that the cash flow generated on aspecific date is only the payment of the principal and the interest based on the outstanding principal amount.For such financial assets, fair value is used for subsequent measurement. The discount or premium isamortized by using the effective interest method and is recognized as interest income or expenses. Except theimpairment losses and the exchange differences of foreign currency monetary financial assets are recognizedas the current profits and losses, the changes in the fair value of such financial assets are recognized as othercomprehensive income until the financial assets are derecognized, the accumulated gains or losses are
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
transferred to the current profits and losses. Interest income related to such financial assets is included in thecurrent profit and loss. Such financial assets are listed as other debt investments, other debt investments duewithin one year (including one year) from the balance sheet date are listed as non-current assets due withinone year; and other debt investments with time limit within one year (including one year) when acquired arelisted as other current assets.
3) Financial assets measured at fair value and whose changes are included in current gains/losses
Financial assets except for the above-mentioned financial assets measured at amortized cost and financialassets measured at fair value and whose changes are included in other comprehensive income are classifiedas financial assets measured at fair value and whose changes are included in current profits and losses, whichadopt fair value for subsequent measurement and all changes in fair value are included in current profits andlosses. The Group classifies non-trading equity instruments as financial assets measured at fair value andwhose changes are included in current profits and losses. Such financial assets are presented as tradingfinancial assets, and those expire after more than one year and are expected to be held for more than one yearare presented as other non-current financial assets.
(3) Devaluation of financial instrument
On the basis of expected credit losses, the Group performs impairment treatment on financial assetsmeasured at amortized cost and financial assets measured at fair value and whose changes are included inother comprehensive income and recognize the provisions for loss.Credit loss refers to the difference between all contractual cash flows that the Company discounts at theoriginal actual interest rate and are receivable in accordance with contract and all cash flows expected to bereceived, that is, the present value of all cash shortages. Among them, for the purchase or source of financialassets that have suffered credit impairment, the Company discounts the financial assets at the actual interestrate adjusted by credit.The Group considers all reasonable and evidenced information, including forward-looking information,based on credit risk characteristics. When assessing the expected credit losses of receivables, they areclassified according to the specific credit risk characteristics as follows:
1) For receivables and contractual assets and lease receivables (including significant financing components
and not including significant financing components), the Group measures the provisions for loss based on theamount of expected credit losses equivalent to the entire duration.?Evaluate expected credit losses based on individual items: credit notes receivable (including acceptedletters of credit) of financial institutions in notes receivable and accounts receivable, and related partypayments (related parties under the same control and significant related parties); dividends receivable,interest receivable, reserve funds, investment loans, cash deposits (including warranty), government grants(including dismantling subsidies) in other receivables, and receivables with significant financing components
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
(i.e. long-term receivables);?Evaluate expected credit losses based on customer credit characteristics and ageing combinations: inaddition to evaluating expected credit losses based on individual items, the Group evaluates the expectedcredit losses of notes receivable and accounts receivable and other receivables financial instruments based oncustomer credit characteristics and ageing combinations.The Group considers all reasonable and evidenced information, including forward-looking information, whenassessing expected credit losses. When there is objective evidence that its customer credit characteristics andageing combination cannot reasonably reflect its expected credit loss, the current value of the expected futurecash flow is measured by a single item, and the cash flow shortage is directly written down the book balanceof the financial asset.
2) Assess the expected credit losses on a case-by-case basis for other assets to which the financial
instruments are impaired, such as the loan commitments and financial guarantee contracts that are notmeasured at fair value through profit or loss, financial assets measured at fair value and whose changes arerecognized in other comprehensive income; other financial assets measured at amortized cost (such as othercurrent assets, other non-current financial assets, etc.).
(4) Reorganization basis and measure method for transfer of financial assets
The financial assets meet one of following requirements will be terminated recognition: ? The contractrights of collecting cash flow of the financial assets is terminated; ?The financial assets has already beentransferred, and the Company has transferred almost all risks and remunerations of financial assets ownershipto the transferee; ?The financial assets has been transferred, even though the Company has neithertransferred nor kept almost all risks and remunerations of financial assets ownership, the Company has givenup controlling the financial assets.If the enterprise has neither transferred or kept almost all risks and remunerations of financial assetsownership, nor given up controlling the financial assets, then confirm the relevant financial assets accordingto how it continues to involve into the transferred financial assets and confirm the relevant liabilitiesaccordingly. The extent of continuing involvement in the transferred financial assets refers to the level of riskarising from the changes in financial assets value faced by the enterprise.
If the entire transfer of financial assets satisfies the demand for derecognition, reckon the balance betweenthe book value of the transferred financial assets and the sum of consideration received from transfer andfluctuation accumulated amount of fair value formerly reckoned in other consolidated income in the currentprofits and losses.
If part transfer of financial assets satisfies the demand for derecognition, apportion the integral book value ofthe transferred financial assets between the derecognized parts and the parts not yet derecognized accordingto each relative fair value, and reckon the balance between the sum of consideration received from transfer
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
and fluctuation accumulated amount of fair value formerly reckoned in other consolidated income that shouldbe apportioned to the derecognized parts and the apportioned aforementioned carrying amounts in the currentprofits and losses.When the Group sells financial assets adopting the mode of recourse, or endorses and transfers its financialassets, it is necessary to ensure whether almost all the risks and rewards of ownership of the financial assetshave been transferred. If almost all the risks and rewards of ownership of the financial assets have beentransferred to the transferee, the financial assets shall be derecognized; if almost all the risks and rewards ofownership of the financial assets are retained, the financial assets shall not be derecognized; if almost all therisks and rewards of ownership of the financial assets are neither transferred nor retained, continue to judgewhether the company retains control over the assets, and conduct accounting treatment according to theprinciples described in the preceding paragraphs.
(5) Category and measurement of financial liability
Financial liability is classified into financial liability measured by fair value and with variation reckoned intocurrent gains/losses and other financial liability at initially measurement. Financial liability shall be initiallyrecognized and measured at fair value. As for the financial liability measured by fair value and with variationreckoned into current gains/losses, relevant trading costs are directly reckoned into current gains/losses whileother financial liability shall be reckoned into the initial amount recognized.
① the financial liability measured by fair value and with variation reckoned into current gains/losses
The conditions to be classified as trading financial liabilities and as financial liabilities designated to bemeasured at fair value and whose changes are included in current profit or loss at the initial recognition areconsistent with the conditions to be classified as trading financial assets and as financial assets designated tobe measured at fair value and whose changes are included in current profit or loss at the initial recognition.Financial liabilities measured at fair value and whose changes are included in current profit or loss aresubsequently measured at fair value, and the gain or loss arising from changes in fair value and the dividendsand interest expense related to these financial liabilities are included in current profit or loss.
② Other financial liability
It must go through the delivery of the derivative financial liabilities settled by the equity instrument to link tothe equity instruments that are not quoted in an active market and whose fair value cannot be reliablymeasured, and the subsequent measurement is carried out in accordance with the cost. Other financialliabilities are subsequently measured at amortized cost by using the effective interest method. The gain orloss arising from derecognition or amortization is included in current profit or loss.
③Financial guarantee contract
The financial guarantee contract of a financial liability which is not designated to be measured at fair value
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
through profit or loss is initially recognized at fair value, and its subsequent measurement is carried out bythe higher one between the amount confirmed in accordance with the Accounting Standards for BusinessEnterprises No. 13 — Contingencies after initial recognition and the balance after deducting the accumulatedamortization amount determined in accordance with the principle of Accounting Standards for BusinessEnterprises No. 14—Revenue from the initial recognition amount.
(6) Termination of recognition of financial liability
The financial liability or part of it can only be terminated for recognized when all or part of the currentobligation of the financial liability has been discharged. The Group (debtor) and the creditor sign anagreement to replace the existing financial liabilities with new financial liabilities, and if the contract termsof the new financial liabilities are substantially different from the existing financial liabilities, terminated forrecognized the existing financial liabilities and at the same time recognize the new financial liabilities. If thefinancial liability is terminated for recognized in whole or in part, the difference between the carryingamount of the part that terminated for recognized and the consideration paid (including the transferred non-cash assets or the assumed new financial liabilities) is included in current profits and losses.
(7) Off-set between the financial assets and liabilities
When the Company has a legal right to offset a recognized financial asset and a financial liability and suchlegal right is currently enforceable, and the Company plans to settle the financial asset on a net basis or torealize the financial asset and settle the financial liability simultaneously, the financial asset and the financialliability are presented in the balance sheet at their respective offsetting amounts. In addition, the financialassets and financial liabilities are presented in the balance sheet separately, and are not offset against eachother.
(8) Derivatives and embedded derivatives
Derivatives are initially measured at fair value on the signing date of the relevant contract, and aresubsequently measured at fair value. Except for derivatives that are designated as hedging instruments andare highly effective in hedging, the gains or losses arising from changes in fair value will be determinedbased on the nature of the hedging relationship in accordance with the requirements of the hedge accountingand be included in the period of profit and loss, other changes in fair value of derivatives are included incurrent profits and losses. For a hybrid instrument that includes an embedded derivative, if it is notdesignated as a financial asset or financial liability measured at fair value and whose changes are included incurrent profit or loss, the embedded derivative does not have a close relationship with the main contract interms of economic characteristics and risks, and as with embedded derivatives, if the tools existing separatelyconform to the definition of the derivatives, the embedded derivatives are split from the hybrid instrumentsand are treated as separate derivative financial instruments. If it is not possible to measure the embeddedderivative separately at the time of acquisition or subsequent balance sheet date, the whole hybrid instrument
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
is designated as a financial asset or financial liability measured at fair value and whose changes are includedin current profits and losses.
(9) Equity instrument
The equity instrument is the contract to prove the holding of the surplus stock of the assets with thededuction of all liabilities in the Group. The Company issues (including refinancing), repurchases, sells orcancels equity instruments as movement of equity. No fair value change of equity instrument would berecognized by the Company. Transaction costs associated with equity transactions are deducted from equity.The Group's various distributions to equity instrument holders (excluding stock dividends) reduceshareholders' equity.
11. Inventory
Inventories of the Company principally include raw materials, stock goods; work in process, self-made semi-finished product, materials consigned to precede, low-value consumption goods, goods in transit, goods inprocess, mould and contract performance costs.
Perpetual inventory system is applicable to inventories. For daily calculation, standard price is adopted forraw materials, low-value consumption goods and stock goods. Switch-back cost of the current month isadjusted by distribution price difference at the end of the month, the dispatched goods will share the costdifferences of inventory while in settlement the business income; and low-value consumption goods iscarried forward at once when being applied for use and the mould shall be amortized within one year afterreceipt.Inventory at period-end is valued by the Lower-of-value between the cost and net realizable value. Theprovision for inventory depreciation shall be drawn from the difference between the book cost of a singleinventory item and its net realizable value, and the provision for inventory depreciation shall be recorded intothe current profit and loss.
12. Contract assets
(1) Confirmation methods and standards of contract assets
Contract assets refer to the right of the Company to receive consideration after transferring goods tocustomers, and this right depends on factors other than the passage of time. If the Company sells two clearlydistinguishable commodities to a customer and has the right to receive payment because one of thecommodities has been delivered, but the payment is also dependent on the delivery of the other commodity,the Company shall take the right to receive payment as a contract asset.
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
(2) Determination method and accounting treatment method of expected credit loss of contract assets
For the determination method for expected credit loss of contract assets, please refer to the above-mentioned
10. (3) Accounting treatment methods for financial instrument impairment. The Company calculates the
expected credit loss of contract assets on the balance sheet date, if the expected credit loss is greater than thebook value of provision for impairment of contract assets, the Company shall recognize the difference as animpairment loss, debiting the "asset impairment loss" and crediting the "contract asset impairmentprovision". On the contrary, the Company shall recognize the difference as an impairment gain and keep theopposite accounting records.If the Company actually incurs credit losses and determines that the relevant contract assets cannot berecovered, for those approved to be written off, debit the "contract asset impairment reserve" and credit the"contracted asset" based on the approved write-off amount. If the written-off amount is greater than theprovision for loss that has been withdrawn, the "asset impairment loss" is debited based on the difference.
13. Contract cost
(1) The method of determining the amount of assets related to the contract cost
The Company’s assets related to contract costs include contract performance cost and contract acquisitioncost.The contract performance cost is the cost incurred by the Company for the performance of the contract, thosethat do not fall within the scope of other accounting standards and meet the following conditions at the sametime are recognized as as an asset as the contract performance cost: the cost is directly related to a current orexpected contract, including direct labor, direct materials, manufacturing expenses (or similar expenses),costs clarified to be borne by the customer, and other costs incurred solely due to the contract; this costincreases the Company's future resources for fulfilling the contract's performance obligations; this cost isexpected to be recovered.Contract acquisition cost is the incremental cost incurred by the Company to obtain the contract, those thatare expected to be recovered are recognized as the contract acquisition cost as an asset; if the assetamortization period does not exceed one year, it shall be included in the current profit and loss when itoccurs. Incremental cost refers to the cost (such as sales commission, etc.) that will not incur if the Companydoesn’t obtain the contract. The Company’s expenses (such as travel expenses incurred regardless of whetherthe contract is obtained) incurred for obtaining the contract other than the incremental costs expected to berecovered are included in the current profits and losses when they are incurred, except those are clarified tobe borne by the customer.
(2) Amortization of assets related to contract costs
The Company’s assets related to contract costs are amortized on the same basis as the recognition ofcommodity income related to the asset and included in the current profit and loss.
(3) Impairment of assets related to contract costs
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
When the Company determines the impairment loss of assets related to the contract cost, it first determinesthe impairment loss of other assets related to the contract that are confirmed in accordance with otherrelevant accounting standards for business enterprises; then based on the difference between the book valueof which is higher than the remaining consideration that the Company is expected to obtain due to thetransfer of the commodity related to the asset and the estimated cost of transferring the related commodity,the excess shall be provided for impairment and recognized as an asset impairment loss.If the depreciation factors of the previous period changed later, causing the aforementioned difference to behigher than the book value of the asset, the original provision for asset impairment shall be reversed andincluded in the current profit and loss, but the book value of the asset after the reversal shall not exceed thebook value of the asset on the reversal date under the assumption that no impairment provision is made.
14. Long-term equity investment
Long-term equity investment of the Company is mainly about investment in subsidiary, investment inassociates and investment in joint-ventures.For long-term equity investments acquired through business combination under common control, the initialinvestment cost shall be the acquirer’s share of the carrying amount of net assets of the acquiree as of thecombination date as reflected in the consolidated financial statement of the ultimate controller. If the carryingamount of net assets of the acquiree as of the combination date is negative, the investment cost of long-termequity investment shall be zero. For long-term equity investment acquired through business combination notunder common control, the initial investment cost shall be the combination cost.
Excluding the long-term equity investment acquired through business combination, there is also a king oflong-term equity investment acquired through cash payment, for which the actual payment for the purchaseshall be investment cost; If Long-term equity investments are acquired by issuing equity securities, fair valueof issuing equity investment shall be investment cost; for Long-term equity investments which are investedby investors, the agreed price in investment contract or agreement shall be investment cost; and for long-termequity investment which is acquired through debt reorganization and non-monetary assets exchange,regulations of relevant accounting standards shall be referred to for confirming investment cost.The Company adopts cost method for investment in subsidiaries, makes calculation for investments in joint-ventures and associates by equity method.
When calculated by cost method, long-term equity investment is priced according to its investment cost, andcost of the investment is adjusted when making additional investment or writing off investment; Whencalculated by equity method, current investment gains and losses represent the proportion of the net gainsand losses realized by the invested unit in current year attributable to or undertaken by the investor. When theCompany is believed to enjoy proportion of net gains and losses of invested unit, gains and lossesattributable to the Company according to its shareholding ratio is to computer out according to theaccounting policy and accounting period of the Company, on the basis of the fair value of various
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
recognizable assets of the invested unit as at the date of obtaining of the investment, after offset of gains andlosses arising from internal transactions with associates and joint-ventures, and finally to make confirmationafter adjustment of net profit of the invested unit. Confirmation on gains and losses from the long-term equityinvestment in associates and joint-ventures held by the Company prior to the first execution day, could onlystand up with the precedent condition that debit balance of equity investment straightly amortized accordingto its original remaining term has already been deducted, if the aforementioned balance relating to theinvestment do exist.
In case that investor loses joint control or significant influence over investee due to disposal of part equityinterest investment, the remaining equity interest shall be calculated according to Accounting Standards forBusiness Enterprise No.22-Recognition and Measurement of Financial Instrument. Difference between thefair value of the remaining equity interest as of the date when loss of joint control or significant influence andthe carrying value is included in current gains and losses. Other comprehensive income recognized in respectof the original equity interest investment under equity method should be treated according to the same basiswhich the investee adopts to directly dispose the relevant assets or liabilities when ceasing adoption of equitymethod calculation; and also switches to cost method for calculating the long-term equity investments whichentitles the Company to have conduct control over the invested units due to its additional investments; andswitches to equity method for calculating the long-term equity investments which entitles the Company toconduct common control or significant influence, while no control over the invested units due to itsadditional investments, or the long-term equity investments which entitles the Company with no control overthe invested units any longer while with common control or significant influence.
When disposing long-term equity investment, the balance between it carrying value and effective price forobtaining shall be recorded into current investment income. When disposing long-term equity investmentwhich is calculated by equity method, the proportion originally recorded in owners’ equity shall betransferred to current investment income according to relevant ratio, except for that other movements ofowners’ equity excluding net gains and losses of the invested units shall be recorded into owners’ equity.
15. Investment real estate
The investment real estate of the Company includes leased houses and buildings, and is accounted value byits cost. Cost of purchased-in investment real estate consists of payment for purchase, relevant taxes andother expenditure which is attributable to the assets directly; while cost of self-built investment real estate isformed with all necessary expenditures occurred before construction completion of the assets arriving at theestimated utilization state.
Consequent measurement of investment estate shall be measured by cost method. Depreciation is providedwith average service life method pursuant to the predicted service life and net rate of salvage value. Thepredicted service life and net rate of salvage value and annual depreciation are listed as follows:
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
Category Depreciation term(Year)
Predicted rate of salvage
value (%)
Depreciation rate perannual (%)House and buildings 30-40 years 4%-5% 2.375%-3.20%When investment real estate turns to be used by holders, it shall switch to fixed assets or intangible assetscommencing from the date of such turning. And when self-used real estate turns to be leased out for rental oradditional capital, the fixed assets or intangible assets shall switch to investment real estate commencingfrom the date of such turning. In situation of switch, the carrying value before the switch shall be deemed asthe credit value after the switch.
When investment real estate is disposed, or out of utilization forever and no economic benefit would bepredicted to obtain through the disposal, the Company shall terminate recognition of such investment realestate. The amount of income from disposal, transfer, discarding as scrap or damage of investment real estateafter deducting the asset’ s carrying value and relevant taxation shall be written into current gains and losses.
16.Fixed assets
Fixed assets of the Company are tangible assets that are also held for the production of goods, provision ofservices, rental or management of operations, have a useful life of more than one year and have a unit valueof more than 2,000 yuan.
Their credit value is determined on the basis of the cost taken for obtaining them. Of which, cost ofpurchased-in fixed assets include bidding price and import duty and relevant taxes, and other expenditurewhich occurs before the fixed assets arrive at the state of predicted utilization and which could be directlyattributable to the assets; while cost of self-built fixed asset is formed with all necessary expendituresoccurred before construction completion of the assets arriving at the estimated utilization state; credit valueof the fixed assets injected by investors is determined based on the agreed value of investment contracts oragreements, while as for the agreed value of investment contracts or agreements which is not fair, it shalltake its fair value as credit value; and for fixed assets which are leased in through finance leasing, creditvalue is the lower of fair value of leased assets and present value of minimized leasing payment as at thecommencing date of leasing.
Consequent expenditure related to fixed assets consists of expenditures for repair and update reform. Forthose meeting requirements for recognization of fixed assets, they would be accounted as fixed asset cost;and for the part which is replaced, recognization of its carrying value shall cease; for those not meetingrequirements for recognization of fixed assets, they shall be accounted in current gains and losses as long asthey occur. When fixed asset is disposed, or no economic benefit would be predicted to obtain throughutilization or disposal of the asset, the Company shall terminate recognization of such fixed asset. The
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
amount of income from disposal, transfer, discarding as scrap or damage of fixed asset after deducting theasset’ s carrying value and relevant taxation shall be written into current gains and losses.
The Company withdraws depreciation for all fixed assets except for those which have been fully depreciatedwhile continuing to use. It adopts average service life method for withdrawing depreciation which is treatedrespectively as cost or current expense of relevant assets according to purpose of use. The depreciation term,predicted rate of salvage value and depreciation rate applied to fixed assets of the Company are as follows:
No. Category Depreciation term
Predicted rate of salvage
value
| Predicted rate of salvage | Depreciation rate per |
year
House and buildings
30-40 years 4%-5% 2.375%-3.20%
Machinery equipment
10-14 years 4%-5% 6.786%-9.60%
Transport equipment
5-12 years 4%-5% 7.92%-19.20%
Other equipment
8-12 years 4%-5% 7.92%-12.00%End of each year, the Company makes re-examination on predicted service life, predicted rate of salvage value and depreciationmethod at each year-end. Any change will be treated as accounting estimation change.
17. Construction in progress
On the day when the construction in progress reaches the expected usable state, it will be carried forward tofixed assets according to the estimated value based on the construction budget, cost or actual constructioncost, and depreciation will be accrued from the next month, and the difference in the original value of fixedassets shall be adjusted after the completion of the final accounting procedures.
18. Borrowing expense
For the incurred borrowing expense that can be directly attributable to fixed assets, investment real estate,and inventory which require more than one year of purchase, construction or production activities to reachthe intended usable or saleable state, the capitalization begins when the asset expenditure has occurred, theborrowing expense have occurred, and the acquisition, construction or production activities necessary tomake the asset reach the intended usable or saleable state have begun; when the acquisition, construction orproduction of assets that meet the capitalization conditions reaches the intended usable or saleable state, stopthe capitalization, the borrowing expense incurred thereafter are included in the current profit and loss. If anasset that meets the capitalization conditions is abnormally interrupted during the acquisition, construction orproduction process, and the interruption lasts for more than 3 months, the capitalization of borrowingexpense shall be suspended until the acquisition, construction or production activities of the asset restart.
Capitalization shall be exercised for interest expense actually occurred from special borrowings in currentperiod after deduction of the interest income arising from unutilized borrowing capital which is saved inbanks or deduction of investment income obtained from temporary investment; For recognization ofcapitalized amount of common borrowing, it equals to the weighted average of the assets whose accumulatedexpense or capital disburse is more than common borrowing times capitalization rate of occupied common
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
borrowing. Capitalization rate is determined according to weighted average interest rate of commonborrowing.
19. Right-of-use assets and lease liabilities
When the Company becomes the lessee of the lease contract and is entitled to receive almost all theeconomic benefits arising from the use of the identified assets during the use period and is entitled to lead theuse of the identified assets during the use period, the leased assets shall be recognized as lease liabilitiesaccording to the present value of the unpaid lease payments after deducting lease incentives (except for short-term leases and low-value asset leases with simplified treatment), and the right-of-use assets shall berecognized based on the sum of the present value of lease liabilities, the prepaid rents and the initial directexpenses, and depreciation and interest expenses shall be recognized respectively. For short-term leases withno purchase option within one year and lease contracts with a value of less than 40,000 yuan (excluding thesublease or expected sublease of assets), we choose to follow the simplified treatment and record into therelated asset cost of or current profit and loss in accordance with the straight-line method during the leaseperiod.Where both leasing and non-leasing businesses exist in the contract and can be split, financial accounting ofthe leasing business shall be carried out according to the leasing standards. Where both leasing and non-leasing businesses exist in the contract and cannot be split, integrate into the leasing business for financialaccounting according to the leasing standards.It is necessary to judge whether the lease change can be confirmed as a single lease business, and thosemeeting the conditions for confirmation of a single lease shall be confirmed separately. The present value oflease liabilities shall be reassessed and measured if the single lease business does not meeting the conditionsfor confirmation of a single lease or major events or changes within the control of the lessee occur, and adjustthe book value of the right-of-use assets accordingly. If the book value of the right-of-use assets has beenreduced to zero, but the lease liabilities still need to be further reduced, the lessee shall include the remainingamount into the corresponding expenses of the current period.When the Company becomes the lessor of a lease contract, the lease shall be divided into operating lease andfinancial lease on the commencement date of the lease. Financial lease refers to a lease that substantiallytransfers all the risks and rewards associated with the ownership of an asset. Operating lease refers to otherlease except finance lease. The rent of the operating lease is recognized as income during the lease term bythe straight-line method. The net investment of the lease shall be taken as the book value of the finance leasereceivables, and the net investment of the lease is the sum of the unsecured residual value and the presentvalue of the lease payments not received on the commencement date of the lease period.
20. Intangible assets
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
The Company’s intangible assets include land use rights, trademark rights and non-proprietary technology,which are measured at actual cost at the time of acquisition, of which, acquired intangible assets are stated atactual cost based on the price actually paid and related other expenditure; the actual cost of an intangibleasset invested by an investor is determined at the value agreed in the investment contract or agreement,except where the agreed value in the contract or agreement is not fair, in which case the actual cost isdetermined at fair value.The land use rights are amortized equally over the period from the commencement date of the grant; theremaining intangible assets are amortized equally over the shortest of the estimated useful life, thecontractual beneficial life and the effective life as prescribed by law. Amortization is charged to the cost ofthe relevant asset and to current profit or loss in accordance with the object of its benefit. The estimateduseful life and amortization method for intangible assets with finite useful lives are reviewed at the end ofeach year and any changes are treated as changes in accounting estimates.
21. Research and development(R&D)
As for expenditure for research and development, the Company classifies it into expenditure on researchphase and development phase, based on nature of the expenditure and that whether the final intangible assetsformed by research & development is of great uncertainty. Expenditure arising during research should berecorded in current gains and losses upon occurrence; expenditure arising during development is confirmedas intangible assets when satisfying the following conditions:
-Completions of the intangible assets make it available for application or sell in technology;-Equipped with plan to complete the intangible asset and apply or sell it;-There is market for products produced with this intangible asset or the intangible asset itself;-Have sufficient technology, financial resource and other resources to support development of the intangibleassets, and have ability to apply or sell the assets;-Expenditure attributable to development of the intangible assets could be reliable measured.Expenditure arising during development not satisfying the above conditions shall be recorded in current gainsand losses upon occurrence. Development expenditure which had been recorded in gains and losses inprevious period would not be recognized as assets in later period. Expenditure arising during developmentphase which has been starting capitalization is listed in balance sheet as development expenditure, andtransferred to intangible assets since the project reaches at predicted utilization state.
22. Impairment of long-term assets
As at each balance sheet date, the Company has inspection on fixed assets, construction in process andintangible assets with limited service life. When the following indications appear, assets may be impaired,and the Company would have impairment test. As for goodwill and intangible assets which have uncertainservice life, no matter there is impairment or not, impairment test shall be conducted at the end of every year.If it is hard to make test on recoverable amount of single asset, test is expected to make on the basis of the
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
assets group or assets group portfolio where such asset belongs to.After impairment test, if the carrying value exceeds the recoverable amount of the asset, the balance isrecognized as impairment loss. As long as impairment loss of the aforementioned assets is recognized, itcouldn’t be switched back in later accounting periods. Recoverable amount of assets refers to the higher offair value of assets net disposal expense and present value of predicted cash flow of the asset.Indications for impairment are as follows:
(1) Market value of asset drops a lot in current period, the drop scope is obviously greater than the predicted
drop due to move-on of times or normal utilization;
(2) Economy, technology or law environment where enterprise operates or market where asset is located will
have significant change in current or recent periods, which brings negative influence to enterprise;
(3) Market interest rate or returning rate of other market investments have risen in current period, which
brings influence in calculating discount rate of present value of predicted future cash flow of assets, whichleads to a great drop in recoverable amount of such assets;
(4) Evidence proving that asset is obsolete and out of time or its entity has been damaged;
(5) Asset has been or will be keep aside, terminating utilization or disposed advance;
(6) Internal report of enterprise shows that economic performance of asset has been or will be lower than
prediction, such as that net cash flow created by asset or operation profit (or loss) realized by asset is greatlylower (or higher) than the predicted amount;
(7) Other indications showing possible impairment of assets
23. Contract liability
Contract liabilities reflect the Company's obligation to transfer goods to customers for consideration receivedor receivable from customers. Before the Company transfers the goods to the customer, if the customer haspaid the contract consideration or the Company has obtained the right to unconditionally receive the contractconsideration, the contract liability is recognized based on the received or receivable amount at the earliertime point of the actual payment by the customer and the payment due.
24. Goodwill
Goodwill represents balance between equity investment cost or business combination cost under no commoncontrol exceeding the attributable part or fair value of recognizable net assets of party invested or purchased(obtained through business combination) as of acquisition day or purchase day.Goodwill relating to subsidiaries is separately listed in consolidated financial statement. And goodwillrelating to associates and joint-ventures is included in carrying value of long-term equity investment.
25. Staff remuneration
Employee benefits mainly include all kinds of remuneration incurred in exchange for services rendered by
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
employees or compensation to the termination of employment relationship such as short-term wages, post-employment benefits, compensation for the termination of employment relationship and other long-termemployee welfare.
Short-term remuneration includes: staff salary, bonus, allowances and subsidies, staff benefits, socialinsurances like medical insurance, work-related injury insurance and maternity insurance, housing fund,labor union funds and staff education funds, short-term paid absence of duty, short-term profit sharingscheme, and non-monetary benefits as well as other short-term remuneration. During the accounting periodwhen staff provides services, the short-term remuneration actually occurred is recognized as liabilities andshall be included in current gains and losses or related asset costs according to the beneficial items.
Retirement benefits mainly consist of basic pension insurance, unemployment insurance and early-retirementbenefits, etc. retirement benefit scheme represents the agreement reached by the Company and its employeesin respect of retirement benefits, or the rules or regulations established by the Company for providingretirement benefits to employees. In particular, defined contribution plan means a retirement benefit plan,pursuant to which, the Company makes fixed contribution to independent fund, upon which, and it is notobliged to make further payment. Defined benefit plan refers to retirement benefit scheme other than definedcontribution plan.
The early retirement policy for staff and workers of the Company is the compensation for encouraging staffand workers to accept the reduction voluntarily. The employees make applications voluntarily, the twoparties sign the compensation agreement after approved by the Company and calculate the compensationamount according to the compensation standard passed by the staff representative conference, and theCompany confirms it as dismiss welfare and reckons it in current profits and losses. As the Companypromises to adjust the treatment for early retiring staff and workers with the increase of social basic cost ofliving allowances, the discount elements will not be considered for calculating the dismiss welfare.
26.Accrual liability
If the business in connection with such contingencies as a security involving a foreign party, commercialacceptance bill discount, pending litigation or arbitration, product quality assurance, etc. meets all of thefollowing conditions, the Company will confirm the aforesaid as liabilities: the obligation is an existingobligation of the Company; performance of the obligation is likely to cause economic benefits to flow out ofthe enterprise; the amount of the obligation is reliably measurable.
27. Principle of recognition of revenue and measurement method
The Company’s sales revenue is mainly comprised of revenue from sale of goods, labor providing incomeand revenue from assignment of asset use rights.The Company has fulfilled the performance obligations in the contract, that is, revenue is recognized whenthe customer obtains control of the relevant goods or services.
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
If the contract contains two or more performance obligations, the Company will allocate the transaction priceto each individual performance obligation according to the relative proportion of the stand-alone selling priceof the goods or services promised by each individual performance obligation on the date of the contract. Therevenue is measured according to the transaction price of each individual performance obligation.
The transaction price is the amount of consideration that the Company expects to be entitled to receive due tothe transfer of goods or services to customers, excluding payments on behalf of third parties. The transactionprice confirmed by the Company does not exceed the amount at which the cumulatively recognized revenuewill most likely not to undergo a significant switch back when the relevant uncertainty is eliminated. Themoney expected to be returned to the customer will be regarded as a return liability and not included in thetransaction price. If there is a significant financing component in the contract, the Company shall determinethe transaction price based on the amount payable on the assumption that the customer pays in cash whenobtaining the control of the goods or services. The difference between the transaction price and the contractconsideration shall be amortized by the effective interest method during the contract period. On the startingdate of the contract, if the Company expects that the interval between the customer's acquisition of control ofthe goods or services and the customer's payment of the price doesn’t exceed one year, the significantfinancing components in the contract shall be ruled out.
When meeting one of the following conditions, the Company is to perform its performance obligationswithin a certain period of time, otherwise, it is to perform its performance obligations at a certain point intime:
1) The customer obtains and consumes the economic benefits brought by the Company's performance at the
same time as the Company's performance;
2) Customers can control the products under construction during the performance of the Company;
3) The goods produced by the Company during the performance of the contract have irreplaceable uses, and
the Company has the right to collect payment for the accumulated performance part of the contract during theentire contract period.For performance obligations performed within a certain period of time, the Company recognizes revenue inaccordance with the performance progress during that period and determine the progress of performance inaccordance with the output method. When the performance progress cannot be reasonably determined, if thecost incurred by the Company is expected to be compensated, the revenue shall be recognized according tothe amount of the cost incurred until the performance progress can be reasonably determined.
For performance obligations performed at a certain point in time, the Company recognizes revenue at thepoint when the customer obtains control of the relevant goods or services. When judging whether a customerhas obtained control of goods or services, the Company will consider the following signs:
1) The Company has the current right to collect payment for the goods or services;
2) The Company has transferred the goods in kind to the customer;
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
3) The Company has physically transferred the goods to the customer;
4) The Company has transferred the principal risks and rewards of ownership of the goods to the customer;
5) The customer has accepted the goods or services, etc.
The Company’s right to receive consideration for goods or services that have been transferred to customersare presented as contractual assets, which are impaired on the basis of expected credit losses. The Company’sunconditional right to receive consideration from customers is shown as a account receivable. The obligationto transfer goods or services to customers for which the Company has received consideration receivable fromthem is shown as a contractual liability.
28. Government subsidy
Government subsidy of the Company include project grants, financial subsidies and job stabilizationsubsidies.Of which, asset-related government subsidy are government subsidy acquired by the Company forthe acquisition or other formation of long-term assets; government subsidy related to revenue are governmentsubsidy other than those related to assets. If the government document does not clearly specify the subsidyobject, the Company will judge according to the above-mentioned distinguishing principle. If it is difficult todistinguish, it will be overall classified as a government subsidy related to income.If government subsidies are monetary assets, they are measured according to the amount actually received.For subsidies paid on the basis of a fixed quota standard, when there is conclusive evidence at the end of theyear that it can meet the relevant conditions stipulated by the financial support policy and is expected toreceive financial support funds, they are measured according to the amount receivable. If the governmentsubsidy is a non-monetary asset, it shall be measured at its fair value, when the fair value cannot be obtainedreliably, it shall be measured at its nominal amount (1 yuan).
Government subsidies related to assets are recognized as deferred income. Asset-related governmentsubsidies that are recognized as deferred income are included in the current profit and loss in installmentsaccording to the average life method during the useful life of the relevant assets.
If the relevant asset is sold, transferred, scrapped or damaged before the end of its useful life, theundistributed deferred income balance shall be transferred to the current profit and loss of asset disposal.
29. Deferred Income Tax Assets and Deferred Income Tax Liabilities
A deferred tax asset and deferred tax liability shall be determined by a difference (temporary difference)between the carrying amount of an asset or liability and its tax base. The deferred tax asset shall berecognized for the carry forward of unused deductible losses that it is probable that future taxable profits willbe available against which the deductible losses can be utilized. For temporary difference arising from initialrecognition of goodwill, no corresponding deferred income tax liabilities will be recognized. For temporary
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
difference arising from initial recognition of assets and liabilities occurred in the transaction related to non-business combination which neither affect accounting profit nor taxable income (or deductible losses), nocorresponding deferred income tax assets and deferred income tax liabilities will be recognized. As of thebalance sheet date, deferred income tax assets and deferred income tax liabilities are measured at theeffective tax rate applicable to the period when recovery of assets or settlement of liabilities occur.
The Company recognizes deferred income tax assets to the extent of future taxable income tax which islikely to be obtained to offset deductible temporary difference, deductible losses and tax credits.
30. Held-for-sale
(1)The Company classifies non-current assets or disposal groups that meet all of the following conditions as
held-for-sale: 1) according to the practice of selling this type of assets or disposal groups in a similartransaction, the non-current assets or disposal group can be sold immediately at its current condition; 2) Thesale is likely to occur, that is, the Company has made resolution on the selling plan and obtained definitepurchase commitment, the selling is estimated to be completed within one year. Those assets whose disposalis subject to approval from relevant authority or supervisory department under relevant requirements aresubject to that approval. Prior to the preliminary classification of non-current assets or disposal group as thecategory of held-for-sale, the Company measures the carrying value of the respective assets and liabilitieswithin the non-current assets or disposal group under relevant accounting standards. For non-current asset ordisposal group held for sale, for which it is found that the carrying value is higher than its fair value lessdisposal expense during the initial measurement or re-measurement on the balance sheet date, the carryingvalue shall be deducted to the net amount of fair value less disposal expense, and the reduced amount shall berecognized as impairment loss in profit or loss for the period, and provision of impairment of assets held forsale shall be provided for accordingly.
(2)The non-current assets or disposal group that the Company has acquired specially for resale are classified
as held for sale on the acquisition date when they meet the condition that “the selling is estimated to becompleted within one year” on the acquisition date, and are likely to satisfy other conditions of beingclassified as the type of held for sale in a short-term (usually being 3 months). Non-current assets or disposalgroup classified as held for sale are measured at the lower of their initial measurement amount and the netamount after their fair value less the selling expenses based on the assumption that such non-current assets ordisposal group are not classified as held for sale at the time of initial measurement. Except for the non-current assets or disposal group acquired in a business combination, the difference arising from consideringthe net amount of such non-current assets or disposal group after their fair value less the selling expenses asthe initial measurement amount is recorded in the current profit or loss.
(3)In case of loss of control over the subsidiaries due to the sales of investment in subsidiaries, no matter
whether the Company retains part of the equity investment after selling investment in subsidiaries, theinvestment in subsidiaries shall be classified as held for sale on an aggregate basis in the separate financialstatements of the parent company when the investment in subsidiaries proposed to be sold satisfies the
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
conditions for being classified as held for sale; and all the assets and liabilities of the subsidiary shall beclassified as held for sale in the consolidated financial statements.
(4)If the net amount of fair value of non-current assets held for sale less sales expense on subsequent balance
sheet date increases, the amount previously reduced for accounting shall be recovered and reverted from theimpairment loss recognized after the asset is classified under the category of held for sale, with the amountreverted recorded in profit or loss for the period. Impairment loss recognized before the asset is classifiedunder the category of held for sale shall not be reverted.
(5)For the amount of impairment loss on assets, the carrying value of disposal group’s goodwill shall be
offset against first, and then offset against the book value of non-current assets according to the proportion ofbook value of non-current assets.If the net amount of fair value of the disposal group held for sale on the subsequent balance sheet date lesssales expenses increases, the amount reduced for accounting in previous periods shall be restored, and shallbe reverted in the impairment loss recognized in respect of the non-current assets which are applicable torelevant measurement provisions after classification into the category of held for sale, with the revertedamount charged in profit or loss for the current period. The written-off carrying value of goodwill andimpairment loss of non-current assets which is recognized prior to classification into the category of held forsale shall not be reverted.The subsequent reversed amount in respect of the impairment loss on assets recognized in the disposal groupheld for sale will increase the book value in proportion of the book value of each non-current asset (otherthan goodwill) in the disposal group.
(6) The non-current assets in the non-current assets or disposal group held for sale is not depreciated or
amortized, and the debt interests and other fees in the disposal group held for sale continue to be recognized.
(7)If the non-current assets or disposal group are no longer classified as held for sale since they no longer
meet the condition of being classified as held for sale or the non-current assets are removed from the disposalgroup held for sale, they will be measured at the lower of the following: 1) the amount after their book valuebefore they are classified as held for sale is adjusted based on the depreciation, amortization or impairmentthat should have been recognized given they are not classified as held for sale; 2) the recoverable amount.
(8) The unrecognized profits or loss will be recorded in the current profits or loss when derecognizing the
non-current assets or disposal group held for sale.
31. Discontinued operation
A discontinued operation is a separately identified component of the Group that either has been disposed ofor is classified as held for sale, and satisfies one of the following conditions: (1) represents a separate majorline of business or geographical area of operations; (2) is part of a single co-ordinate plan to dispose of a
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
separate major line of business or geographical area of operations; and (3) is a subsidiary acquiredexclusively with a view to resale.
32. Income tax accounting
The Company accounted the income tax in a method of debit in balance sheet. The income tax expensesinclude income tax in the current year and deferred income tax. The income tax associated with the eventsand transactions directly included in the owners’ equity shall be included in the owners’ equity; and thedeferred income tax derived from business combination shall be included in the carrying amount of goodwill,except for that above, the income tax expense shall be included in the profit or loss in the current period.The income tax expense in the current year refers to the tax payable, which is calculated according to the taxlaws on the events and transactions incurred in the current period. The deferred income tax refers to thedifference between the carrying amount and the deferred tax assets and deferred tax liabilities at CurrentYear-end recognized in the method of debit in the balance sheet.
33. Segment information
Business segment was the major reporting form of the Company, which divided into four parts: air-conditioning, refrigerator & freezer & washing machine, small home appliance and others. The transfer priceamong the segments will recognize based on the market price, common costs will allocated by incomeproportion between segments except for the parts that without reasonable allocation.
34. Explanation on significant accounting estimation
The management of the Company needs to apply estimation and assumption when preparing financialstatement which will affect the application of accounting policy and amounts of assets, liabilities, income andexpense. The actual condition may differ from the estimation. Constant evaluation is conducted by themanagement in respect of the key assumption involved in the estimation and judgment of uncertainties.Effect resulting from change of accounting estimation is recognized in the period the change occurs andfuture periods.The following accounting estimation and key assumption may result in material adjustment to the book valueof assets and liabilities in future period.
(1) Inventory impairment provision
The Company's provision for impairment of inventories on the balance sheet date is the part of the netrealizable value lower than the cost of inventories. The net realizable value of the inventory of goods that aredirectly used for sale, such as the goods in stock, the goods sent out, and the materials for sale, and the low-consumption goods, shall be determined by the amount of the estimated selling price of the inventory minusthe estimated selling expenses and relevant taxes. The net realizable value of the material inventory held forproduction is determined by the amount of the estimated selling price of the finished product produced
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
minus the estimated cost to be incurred at the time of completion, the estimated selling expenses and relevanttaxes.
(2) Accounting estimation on long-term assets impairment provision
The Company makes impairment test on fixed assets such as buildings, machine and equipment which haveimpairment indication and long-term assets such as goodwill as at the balance sheet date. The recoverableamount of relevant assets and assets group shall be the present value of the projected future cash flow whichshall be calculated with accounting estimation.If the management amends the gross profit margin and discount rate adopted in calculation of future cashflow of assets and assets group and the amended gross profit margin is lower than the currently adopted oneor the amended discount rate is higher than the currently adopted one, the Company needs to increaseprovision of impairment provision. If the actual gross profit margin is higher (or the discount rate is lower)than the estimation of management, the Company can not transfer back the long term assets impairmentprovision provided already.
(3) Accounting estimation on realization of deferred income tax assets
Estimation on deferred income tax assets needs estimation on the taxable income and applicable tax rate foreach future year. Realization of deferred income tax assets depends on whether a company is able to obtainsufficient taxable income in future. Change of future tax rate and switch back of temporary difference couldaffect the balance of income tax expense (gains) and deferred income tax. Change of the aforesaid estimationmay result in material adjustment to deferred income tax.
(4) Usable term and residual value rate of fixed assets and intangible assets
The Company, at least at the end of each accounting year, reviews the projected usable life and residual valuerate of fixed assets and intangible assets. The projected usable life and residual value rate are determined bythe management based on the historical experiences of similar assets by reference to the estimation generallyused by the same industry with consideration on projected technical upgrade. If material change occurs toprevious estimation, the Company shall accordingly adjust the depreciation expenses and amortizationexpenses for future period.
(5) Projected liabilities arising from product quality guarantee
The Company commits to repair the major spare parts of refrigerators sold through go-to-countrysidepromotion activity for free for ten years. As to the maintenance expenses that may be increased arising fromsuch commitment, the Company has provided projected liabilities.
Taking into account the various uncertainties during the ten years, the Company considers no discount factorof such projected liabilities. Instead, the Company reviews the parameters (probility, proportion, maintenanceexpense per single set) based on the actual occurrence of maintenance expenses as of each balance sheet date.If obvious change is found, the Company will adjust the projected liabilities according to the latestparameters so as to reflect the best estimation.
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
35. Other comprehensive income
Other comprehensive income represents various gains and losses not recognized in current gains and lossesaccording to other accounting rules.Other comprehensive income items shall be reported in the following two classes under other relevantaccounting rules:
(1) Other comprehensive income items that can not be reclassified into gains and losses in future accounting
periods, mainly including changes arising from re-measurement of net liabilities or net assets under definedbenefit plan and interest in investee’s other comprehensive income which are measured under equity methodand which can not be reclassified into gains and losses in future accounting periods;
(2) Other comprehensive income items that will be reclassified into gains and losses in future accounting
periods upon satisfaction of required conditions, mainly includes the share of other comprehensive incomethat is reclassified into profit and loss when the investee’s subsequent accounting periods are accounted for inaccordance with the equity method and meet the specified conditions, the fair value changes occurred by thedebt investment that is measured at fair value and whose changes are included in other comprehensiveincome, the difference between the original book value included in other comprehensive income and the fairvalue when a financial asset measured at amortized cost is reclassified as a financial asset measured at fairvalue and its changes are included in other comprehensive income, the loss provisions for financial assetsmeasured at fair value and whose changes are included in other comprehensive income, the gains or lossesgenerated from cash flow hedging instruments are part of effective hedging, and the differences inconversion of foreign currency financial statements.
36. Change of significant accounting policies and accounting estimates
(1) Change of significant accounting policy
Content and reasons
| Content and reasons | Approval procedure | Note |
| In 2018, the Ministry of Finance amended the Accounting |
Standards for Business Enterprise No.21- Lease, and the Company
accordance with the relevant convergence provisions.
Relevant change of the accounting policyhas been deliberated and approved by the
th session of 10
th
BOD
Items and amounts of the statement items materially affected are as follows:
Item affected
Consolidated balance sheet
Balance sheet of parent company
implemented the relevant accounting standards in preparing itsfinancial statements for the first half year of 2021 and in2020-12-31
（beforechanged）
Amountadjusted
| 2020-12-31 | 2021-1-1 |
（afterchanged ）
（beforechanged）
Amountadjusted
| 2020-12-31- | 2021-1-1 |
（afterchanged）Right-of-useassets
9,818,834.44
9,818,834.44
Account paid inadvance
30,105,373.40
-35,070.34
30,070,303.06
39,571,728.09
39,571,728.09
Lease liability
4,783,483.43
4,783,483.43
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
Item affected
Consolidated balance sheet
Balance sheet of parent company
2020-12-31
（beforechanged）
Amountadjusted
| 2020-12-31 | 2021-1-1 |
（afterchanged ）
（beforechanged）
Amountadjusted
| 2020-12-31- | 2021-1-1 |
（afterchanged）Non-current
within one year
407,825,150.74 5,000,280.67 412,825,431.41 407,141,888.08
407,141,888.08
(2) Change of significant accounting estimates: N/A
(3) Implementation of the new lease standard for 2021 (for the first time) adjusts the information on the
relevant items in the financial statements at the beginning of the year of implementationNotes to the adjustment of consolidation and parent company’s balance sheet: in accordance with the newlease standards exercise on 1 Jan. 2021. Adjust the amount of items related to the financial statements at thebeginning of the year of the first implementation based on the cumulative impact of the first implementationof the new lease standards, without adjusting the comparable period information. For the operating leaseprior to the first execution date, the Company shall measure the lease liability according to the present valueof remaining lease payments discounted on the basis of the internal resource input interest rate on the firstexecution date, and the right-of-use asset shall be adjusted according to the sum of the lease liability and theprepayment. See index 36 (1) for the specific adjustment details.
(4) There are no retrospective adjustments to prior period data for the implementation of the new lease
standard from 2021 (for the first time)V. Taxation
1. Major taxes and tax rates
Tax (expenses) Tax (expenses) base Tax (expenses) rateVAT Income from sales of goods and from processing 13%, 9%, 6%, 5%, 3%
liability dueUrban maintenance and
construction tax
Turnover tax 5% or 7%Education surcharge Turnover tax 3%
Urban maintenance andLocal education
surcharge
Turnover tax 2%Corporate income tax
Taxable income
15%, 20%, 25%, 30%, 33%House property tax
Original book value of house property×(1-30%) orannual rent income
1.2% or 12%
Land use tax Actual land area used
1 Yuan/M
to 15 Yuan /M
Description of taxpayers with different corporate income tax rates:
Name Income tax rate
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
Name Income tax rateChanghong Meiling Co., Ltd. 15%Zhongke Meiling Cryogenic Technology Co., Ltd. 15%Zhongshan Changhong Electric Co., Ltd. 15%Sichuan Hongmei Intelligent Technology Co., Ltd. 15%Mianyang Meiling Refrigeration Co., Ltd. 15%Changhong Meiling Ridian Technology Co., Ltd. 15%Ground Energy Heat Pump Tech. (Zhongshan) Co., Ltd. 15%Hefei Meiling Nonferrous Metal Products Co., Ltd. 15%Jiangxi Meiling Electric Appliance Co., Ltd. 15%Sichuan Changhong Air-conditioner Co., Ltd. 15%Anhui Tuoxing Technology Co., Ltd.
20%Guangzhou Changhong Trading Co., Ltd
20%Anhui Lingan Medical Equipment Co., Ltd
20%Hefei Meiling Wulian Technology Co., Ltd
20%CH-Meiling International (Philippines) Inc.
30%Changhong Ruba Trading Company (Private) Limited
33%
2. Preferential tax
(1) On August 17, 2020, the company obtained the high-tech enterprise certificate numbered GR202034000222 approved by
the Anhui Provincial Department of Science and Technology, Anhui Provincial Department of Finance, and Anhui ProvincialTaxation Bureau of the State Administration of Taxation, and enjoys 15% rate for the income tax for State Hi-Tech Enterprisefor three years term.
(2) On August 17, 2020, the subsidiary Zhongke Meiling Cryogenic Technology Co., Ltd. obtained the high-tech enterprise
certificate numbered GR202034000072 approved by the Anhui Provincial Department of Science and Technology, AnhuiProvincial Department of Finance, and Anhui Provincial Taxation Bureau of the State Administration of Taxation, and enjoys15% rate for the income tax for State Hi-Tech Enterprise for three years term.
(3) On December 9, 2020, the subsidiary Zhongshan Changhong Electric Co., Ltd., was included in the “Notice on Publicizing
the List of the Second Batch of High-tech Enterprises to be Recognized in Guangdong Province in 2020'' published by theOffice of the National High-tech Enterprise Certification Management Leading Group, and continues to enjoy 15% rate for theincome tax for State Hi-Tech Enterprise for three years term.
(4) The subsidiary Sichuan Hongmei Intelligent Technology Co., Ltd. has passed the qualification of high-tech enterprise
certification on 9 December 2020, and enjoys 15% rate for the income tax for State Hi-Tech Enterprise for three years term.
(5) Subsidiary Mianyang Meiling Refrigeration Co., Ltd., belongs to the encouraged industry in the Industrial Structure
Adjustment Guidance Catalog and enjoys the preferential taxation policy of corporate income tax for the Western Development,and the corporate income tax is levied at a reduced tax rate of 15%, valid until December 31, 2030.
(6) The subsidiary Guangdong Changhong Meiling Ridian Technology Co., Ltd. has passed the qualification of high-tech
enterprise certification on 2 December 2019, and enjoys 15% rate for the income tax for State Hi-Tech Enterprise for three
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
years term.
(7) The subsidiary Hongyuan Ground Energy Heat Pump Tech. (Zhongshan) Co., Ltd. has passed the qualification of high-tech
enterprise certification on 2 December 2019, and enjoys 15% rate for the income tax for State Hi-Tech Enterprise for threeyears term.
(8) The subsidiary Hefei Meiling Nonferrous Metal Products Co., Ltd. has passed the qualification of high-tech enterprise
certification on 26 October 2018, and enjoys 15% rate for the income tax for State Hi-Tech Enterprise for three years term.
(9) The subsidiary Jiangxi Meiling Electric Appliance Co., Ltd. has passed the qualification of high-tech enterprise certification
on 16 September 2019, and enjoys 15% rate for the income tax for State Hi-Tech Enterprise for three years term.
(10) The subsidiary Sichuan Changhong Air-conditioner Co., Ltd., belongs to the encouraged industry in the Industrial
Structure Adjustment Guidance Catalog and enjoys the preferential taxation policy of corporate income tax for the WesternDevelopment, and the corporate income tax is levied at a reduced tax rate of 15%, valid until December 31, 2030.
(11) The subsidiary Anhui Tuoxing Technology Co., Ltd., Anhui Lingan Medical Equipment Co., Ltd., Hefei Meiling Wulian
Technology Co., Ltd., Guangzhou Changhong Trading Co., Ltd. are in compliance with the relevant standards for small andmedium-sized enterprises with meager profits in the “Notice on matters related to the implementation of preferential incometax policy to support the development of small & medium-size enterprise and individual entrepreneurs” (Guoshui [2021] No. 8)of the Ministry of Finance and the State Administration of Taxation, and temporarily implements below policies: the part ofannual taxable income that does not exceed one million yuan is included in taxable income by 12.5% after a reduction, andcorporate income tax is paid at a tax rate of 20%; while the part of annual taxable income exceeds one million yuan but notexceeding three million yuan is included in taxable income by 50% after a reduction, and corporate income tax is paid at a taxrate of 20%, which is valid until December 31, 2022.VI. Notes to the major items in the consolidated financial statementsWith respect to the financial statements’ figures disclosed below, unless otherwise specified, “period-beginning” refers to Jan. 1, 2021; “period-end” refers to Jun. 30, 2021; “Current Period” refers to Jan. 1 toJun. 30, 2021; “the last period” refers to Jan. 1 to Jun. 30, 2020; the currency is RMB.
1. Monetary fund
Item Ending balance Opening balanceCash 89,912.16 35,088.07Bank deposit 4,132,381,613.96 6,100,644,898.32Other monetary fund 1,169,651,408.13 484,232,497.85Interest receivable on deposit
8,396,333.53 9,874,305.74
Total
5,310,519,267.78 6,594,786,789.98Including: total amount deposited in overseas 9,678,300.21 11,293,949.64Total use of restricted funds 534,571,433.50 159,382,669.14Other monetary fund:
Item Ending balanceCash deposit 1,131,829,052.28B share repurchase 26,606,274.19Account of foreign currency for verification 10,372,374.03
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
Item Ending balanceCo-managed account funds 503,933.87Taobao account 256,846.75Union Pay online 82,927.01
Total 1,169,651,408.13Which serves as non cash and cash equivalents refers to the banking acceptance draft deposit with a term of over three months,amounting to 484,617,499.63 yuan, forward locking deposit 50,000.00 yuan, the amount restricted for used in managed accountwas 503,933.87 yuan, bank deposits of 49,300,000.00 yuan frozen due to litigation, China Union Pay, Taobao account and TenPay are all third party payment platforms for the deposit of 100,000.00 yuan and interest receivable from deposits of8,396,333.53 yuan, the remaining Monetary funds are treated as cash and cash equivalents.Parts of the goods payment denominated in foreign currency should be transferred to reviewing accounts which may not beused temporarily. Upon approval of such review, those payments may be transferred to general accounts. Due to the relativelyshort time for reviewing foreign exchange, balance of the reviewing accounts is not limited on utilization.
2. Trading financial assets
Item Ending balance Opening balanceFinancial assets measured at fair value and whose changes are includedin current gains/losses
755,672,778.49 47,242,339.07Including: Derivative financial assets 28,746,156.57 47,242,339.07Principal and interest of wealth management products 726,926,621.92
Trading financial assets refer to the RMB forward exchange fund in Current Period
3. Note receivable
(1) Category of note receivable
Item Ending balance Opening balanceBank acceptance 110,365,130.06 13,023,329.01Trade acceptance 123,550,518.22 335,880,000.00
Total 233,915,648.28 348,903,329.01Less: bad debt provision 7,935,065.79 8,481,942.30
Book value 225,980,582.49 340,421,386.71
(2) Notes endorsement or discount and undue on balance sheet date
Item
Amount derecognition at
period-end
Amount withoutderecognition at period-endBank acceptance 16,158,165.85Trade acceptance
Total 16,158,165.85
(3) Notes transfer to account receivable due for failure implementation by drawer at period-end
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
Item Amount of accounts receivable transferred at period-endTrade acceptance 14,460,000.00
Total 14,460,000.00
(4) By accrual of bad debt provision
Category
Ending balanceBook balance Bad debt provision
Book valueAmount Ratio Amount Ratio
With bad debt provision
accrual on single item
110,365,130.06 47.18% 300,000.00
| With bad debt provision |
0.27% 110,065,130.06
Including: bank acceptance 110,365,130.06 47.18% 300,000.00
0.27% 110,065,130.06
| With bad debt provision |
accrual on portfolio
123,550,518.22 52.82% 7,635,065.79
6.18% 115,915,452.43
Including: trade acceptance 123,550,518.22 52.82% 7,635,065.79
6.18% 115,915,452.43
Total 233,915,648.28 100.00% 7,935,065.79
3.39% 225,980,582.49
(Continued)
Category
Opening balanceBook balance Bad debt provision
Book valueAmount Ratio Amount Ratio
With bad debt provision
accrual on single item
13,023,329.01 3.73% 300,000.00
| With bad debt provision |
2.30% 12,723,329.01
Including: bank acceptance 13,023,329.01 3.73% 300,000.00
2.30% 12,723,329.01
| With bad debt provision |
accrual on portfolio
335,880,000.00 96.27% 8,181,942.30
2.44% 327,698,057.70
Including: trade acceptance 335,880,000.00 96.27% 8,181,942.30
2.44% 327,698,057.70
Total 348,903,329.01 100.00% 8,481,942.30
2.43% 340,421,386.71
1) Note receivable withdrawal bad debt provision on single item
Name
Ending balanceBook balance
Bad debtprovision
Provision ratio(%)
Provision reasonBank acceptance
110,065,130.06
Minimal risk, holding maturity
acceptanceBank acceptance
300,000.00 300,000.00 100%
The bill has been collected by
the bankTotal
110,365,130.06 300,000.00
— —
2) Note receivable withdrawal bad debt provision by combination
Account age Ending balance
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
Note receivable Bad debt provision Provision ratioWithin 3 months (3 months included) 57,741,309.81 577,413.10
1.00%
| More than 3 months and less than 6 months |
(6 months included)
61,041,889.96 6,104,189.00
10.00%
More than 6 months and less than 1 year (1year included)
4,767,318.45953,463.69
20.00%
Total 123,550,518.22 7,635,065.79
—
(5) Bad debt provision of note receivable that has been accrued, withdrawn, and reversed this period
Category Opening balance
Changes this period
Ending balanceAccrual
Withdrawal or
reversal
Write-off Other
| Withdrawal or | ||
| Bad debt |
provision
8,481,942.30
-546,876.51
7,935,065.79Total 8,481,942.30
-546,876.51
7,935,065.79
(6) No note receivable actually written off in this period.
4. Account receivable
(1) Category of account receivable by bad debt accrual
Category
Ending balanceBook balance Bad debt provision
Book valueAmount Ratio Amount Ratio
bad debt provision by single item
1,606,637,512.84
| Account receivable that withdrawal |
61.00% 24,560,360.79
1.53% 1,582,077,152.05
| Including: current payment with related |
party
1,411,296,917.53
53.58% 2,840,923.40
0.20% 1,408,455,994.13
| Account receivable with letter of |
credit
173,621,157.92
6.60% 173,621,157.92
| Account receivable with single minor amount but withdrawal single item |
bad debt provision
21,719,437.39
0.82% 21,719,437.39
100.00
%
debt provision by portfolio
1,027,276,092.39
| Account receivable withdrawal bad |
39.00% 63,294,173.26
6.16% 963,981,919.13
| Including: account receivable of |
engineering customers
189,055,930.27
7.18% 13,940,083.40
7.37% 175,115,846.87
| Receivables other than engineering |
customers
838,220,162.12
31.82% 49,354,089.86
5.89% 788,866,072.26
Total 2,633,913,605.23
100.00% 87,854,534.05
3.34% 2,546,059,071.18
(Continued)
Category
Opening balanceBook balance Bad debt provision
Book valueAmount Ratio Amount Ratio
Account receivable that withdrawal
bad debt provision by single item
| Account receivable that withdrawal | 523,379,846.95 |
43.52%
| 25,905,935.37 |
4.95%
497,473,911.58
| Including: current payment with related |
33.07%
| 397,745,724.79 |
0.99%
| 3,943,524.26 |
393,802,200.53
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
Category
Opening balanceBook balance Bad debt provision
Book valueAmount Ratio Amount Ratio
party
| party |
| Account receivable with letter of |
credit
5.99%
| 72,037,362.43 |
72,037,362.43
| Account receivable with single minor amount but withdrawal single item |
bad debt provision
4.46%
| 53,596,759.73 |
40.98%
| 21,962,411.11 |
31,634,348.62
| Account receivable withdrawal bad |
debt provision by portfolio
56.48%
| 679,107,003.09 |
6.82%
| 46,305,134.01 |
632,801,869.08
| Including: account receivable of |
engineering customers
14.44%
| 173,638,731.59 |
7.49%
| 13,008,672.00 |
160,630,059.59
| Receivables other than engineering |
customers
42.04%
| 505,468,271.50 |
6.59%
| 33,296,462.01 |
472,171,809.49
Total
| 1,202,486,850.04 |
100.0%
| 72,211,069.38 |
6.01%
1,130,275,780.66
1) Account receivable that withdrawal bad debt provision by single item
Account receivable with single minor amount but withdrawal bad debt provision singly, refers to the minorsingle receivables, and withdrawal bad debt provision by combination shows no risk characteristic of thereceivables, 75 clients involved.
2) Account receivable withdrawal bad debt provision by portfolio
A. Account receivable of engineering customers
Account age
Ending balanceBook balance
Bad debtprovision
Provision ratio (%)Within 3 months (3 months included)
47,284,652.60
More than 3 months and less than 6 months (6months included)
41,097,523.45
Over 6 months and within one year (One yearincluded)
50,196,962.50
Over one year - within 2 years (2 years included)
37,745,416.52 7,549,083.30 20.00%Over 2 years - within 3 years (3 years included)
12,680,750.20 6,340,375.10 50.00%Over 3 years
50,625.00 50,625.00 100.00%Total
189,055,930.27 13,940,083.40—B. Receivables other than engineering customers
Account age Ending balance
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
Book balance
Bad debtprovision
Provision ratio (%)Within 3 months (3 months included)
689,829,531.85 6,898,295.32 1.00%More than 3 months and less than 6 months (6months included)
72,215,232.06 7,221,523.21 10.00%Over 6 months and within one year (One yearincluded)
35,958,453.69 7,191,690.74 20.00%Over one year - within 2 years (2 years included)
19,154,913.13 9,577,456.57 50.00%Over 2 years - within 3 years (3 years included)
12,984,536.83 10,387,629.46 80.00%Over 3 years
8,077,494.56 8,077,494.56 100.00%Total
838,220,162.12 49,354,089.86—
(2) By account age
Account age Ending balanceWithin 3 months (3 months included)
2,168,300,692.76More than 3 months and less than 6 months (6 monthsincluded)
247,107,189.16
Over 6 months and within one year (One year
included)
97,272,963.59Over one year - within 2 years (2 years included)
67,934,834.51Over 2 years - within 3 years (3 years included)
34,874,653.00Over 3 years
18,423,272.21Total2,633,913,605.23
(3) Bad debt provision of accounts receivable this period
Category Opening balance
Changes this period
Ending balanceAccrual
Withdrawal or
reversal
Write-off OtherBad debtprovision
Over 6 months and within one year (One year
72,211,069.38
16,898,006.47
| 72,211,069.38 |
| 1,228,611.25 |
87,854,534.05Total
| 25,930.55 | ||
| 72,211,069.38 |
16,898,006.47
| 1,228,611.25 |
87,854,534.05
(4) Account receivable actually written-off in Current Period: nil
(5) Pledge of accounts receivable at period-end: nil.
(6) Top five receivables collected by arrears party amounting to 1,719,453,354.68 yuan in total, accounted
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
for 65.28% of the receivables of Current Period-end, the bad debt provision accrual correspondinglyamounting to 20,824,326.64 yuan at period-end balance.
(7) No account receivable terminated recognition due to the transfer of financial assets
(8) No assets and liability transfer account receivable and continues to involve
5. Receivables financing
Item Ending balance Opening balanceBank acceptance 1,132,467,568.98 1,632,388,702.83
Total 1,132,467,568.98 1,632,388,702.83
(1) Notes receivable already pledged that presented in receivables financing at the end of the period:
Item Amount pledged at period-endBank acceptance 440,912,836.95
Total 440,912,836.95Note: with purpose of improving the note utilization, the Company draw up bank acceptance by pledge parts of the outstandingnotes receivable to the bank. For details of the pledge of bills receivable, see Note VI. 59. Assets with restricted ownership oruse rights.
(2) Notes endorsement or discount and undue on balance sheet date at the end of the period
Item
Amount derecognition at
period-end
Amount withoutderecognition at period-endBank acceptance 935,633,106.18
Total 935,633,106.18
6. Accounts paid in advance
(1) Age of account paid in advance
Item
Ending balance Opening balanceAmount Ratio
（
%
| ） |
Amount Ratio
%
| ） |
Within one year
50,782,544.26 93.62% 29,388,065.57 97.73%1-2 years 3,375,859.72 6.22% 393,517.42 1.31%2-3 years 33,482.30 0.06% 25,000.00 0.08%Over 3 years
54,314.62 0.10% 263,720.07 0.88%Total
54,246,200.90 100.00% 30,070,303.06 100.00%
(2) Top 5 of account paid in advance in balance at period-end amounting to 39,328,333.92 yuan, accounted
for 72.50% of the account.
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
7. Other account receivable
Item Ending balance Opening balanceOther account receivable
119,579,871.70 145,705,978.26
Total
119,579,871.70 145,705,978.26
(1) Category of other account receivable
Nature Book balance at period-end Book balance at period-beginExport rebate 33,524,889.53 32,281,664.19Cash deposit 70,998,962.91 77,754,290.83Loans of employee’s pretty cash 13,624,640.82 14,876,565.98Related party not in consolidation statement 2,057,893.47 3,241,296.82Advance money temporary 44,868.93 65,938.41Other 216,853.56 18,375,974.37
Total
120,468,109.22 146,595,730.60
(2) Other account receivable bad debt reserves
Bad debt provision
First stage Second stage Third stage
TotalExpectedcredit loss innext 12months
Expected credit loss
for the wholeduration (no credit
impairment)
Expected credit loss
for the wholeduration (creditimpairment has
occurred)Balance as at 1 Jan. 2021
839,752.34 50,000.00 889,752.34Book balance of other accountreceivable in Current Period asat 30 Jun. 2021
— — ——--Transfer to the second stage
-- Transfer to the third stage
-- Reversal to the second stage
-- Reversal to the first stage
Provision in Current Period
-1,514.82 -1,514.82Reversal in Current Period
Conversion in Current Period
Write off in Current Period
Other change
Balance as at 30 Jun. 2021
838,237.52 50,000.00 888,237.52
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
(3) By account age
Account age Ending balanceWithin 3 months (3 months included)
57,004,480.08More than 3 months and less than 6 months (6 monthsincluded)
3,577,905.93
Over 6 months and within one year (One year
included)
28,852,257.97Over one year - within 2 years (2 years included)
24,668,597.60Over 2 years - within 3 years (3 years included)
2,048,710.92Over 3 years
4,316,156.72Total
120,468,109.22
(4) Top 5 other receivables collected by arrears party at balance of period-end:
Name
Nature Ending balance Account age
Proportion in total
other receivables
ending balance
Endingbalance of baddebt provisionSAT of Hefei Economic &
Over 6 months and within one year (One yearTechnological Development
Zone
Tax rebate 32,398,824.33
Within 3months
26.89%
| Technological Development | ||
| Development & Reform |
Bureau of Qingyuan District,Baoding City
Cash deposit 16,400,000.00
Over 6 monthsand within oneyear
13.61%
| Office of the lading group for construction of new socialist countryside in |
Shunyi District
Cash deposit 8,780,849.40
More than 3months andless than 6
months
7.29%
Housing and Urban-Rural
| Development Bureau in |
Anxin County
Cash deposit 5,862,175.00
Within 3months & morethan 6 monthsand within 1
year
4.87%
| Housing and Urban-Rural Development Bureau in |
Anguo City
Cash deposit 3,319,800.00
and within one
year
2.76%
| Over 6 months |
Total—66,761,648.73
—
55.42%
(5) No other account receivable involved government subsidies
(6) No other receivables terminated recognition due to the transfer of financial assets
(7) No assets and liability transfer other receivables and continues to involve
8. Inventories
(1) Classification of inventories
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
Item
Ending balanceBook balance
Inventory price declineprovision/contractperformance costimpairment provision
Book valueRaw materials 210,601,097.48
8,902,221.77 201,698,875.71Stock commodities 1,396,193,629.54
81,229,282.34 1,314,964,347.20Low value consumable articles 4,662,174.09
918,669.46 3,743,504.63Goods in transit 630,696,166.92
20,320,371.32 610,375,795.60Goods-in-process 14,545,773.24
14,545,773.24Contract performance cost 94,330,091.14
82,985.99 94,247,105.15Deferred expense for mould 45,913,383.53
45,913,383.53Total 2,396,942,315.94
111,453,530.88 2,285,488,785.06
(Continued)
Item
Opening balanceBook balance
Inventory price decline
provision/contractperformance costimpairment provision
Book valueRaw materials 153,887,580.62
9,729,874.26 144,157,706.36Stock commodities 1,227,162,291.35
73,930,262.61 1,153,232,028.74Low value consumable articles 5,946,757.68
916,206.67 5,030,551.01Goods in transit 245,061,800.18
9,702,391.49 235,359,408.69Goods-in-process 8,737,073.41
8,737,073.41Contract performance cost 119,758,145.49
97,462.80 119,660,682.69Deferred expense for mould 49,177,500.53
49,177,500.53Total 1,809,731,149.26
94,376,197.83 1,715,354,951.43
(2) Provision for inventory depreciation and contract performance cost impairment provision
Item Opening balance
Increase this period Decrease this period
Ending balanceAccrual Other
Reversal or
reselling
OtherRaw materials 9,729,874.26 1,203,327.85 2,030,980.34
8,902,221.77Stockcommodities
73,930,262.61 28,449,893.2321,150,873.50
81,229,282.34Goods in transit 9,702,391.49 13,649,336.15 3,031,356.32
20,320,371.32
| Low value |
consumablearticles
916,206.67 4,603.21 2,140.42
918,669.46Contractperformancecost
97,462.80 3,205.98 17,682.79
82,985.99Total 94,376,197.83 43,310,366.42 26,233,033.37
111,453,530.88
(8) Accrual for inventory falling price reserves
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
Item Specific basis for determining of net realizable value
Reasons for the reversal orreselling in Current PeriodRaw materials
Cost is higher than net realizable value (The processed products aredecline)
For productionStockcommodities
Cost is higher than net realizable value (The market price at period-endfell)
For saleGoods in transit
Cost is higher than net realizable value (The market price at period-endfell)
For sale
Low value
consumablearticles
Cost is higher than net realizable value Already usedContractperformance cost
| Low value | |
| Engineering construction |
Cost is higher than net realizable value (The
Already used
9. Other current assets
Item Ending balance Opening balanceValue-added tax to be deducted 198,735,885.46
processed products are decline)
181,882,278.05Advance payment of income tax 2,898,546.47
9,506,261.78Contract acquisition cost 13,584,231.77
4,511,132.31Other unamortized expenses 4,120,927.62
2,453,792.84Total 219,339,591.32
198,353,464.98
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
10. Long-term equity investment
Invested enterprise
Openingbalance
Changes in Current Period
Endingbalance
Endingbalance
ofimpair
mentAdditio
nalinvestm
ent
Disinvestment
Investment profitand loss confirmedby equity method
Othercomprehensiveincomeadjustment
Otherchanges ofequit
y
Declaration ofcash dividends
or profits
Provision forimpair
ment
Othe
rAssociated companies
| 1.Hefei Xingmei Assets Management Co., |
Ltd.
6,826,274.99
-
| 467,024.04 |
| 6,359,250.95 | |||
| 2.Sichuan Zhiyijia Network Technology |
Co., Ltd.
note 1
39,163,339.54
-
| 16,208,022.33 |
| 22,955,317.21 | |||
| 3.Hongyuan Ground Energy Heat Tech. |
Co., Ltd.
note 2
22,103,109.57
-
| 924,784.75 |
| 21,178,324.82 | |||
| 4.Sichuan Tianyou Guigu Technology |
Co., Ltd.
note 3
2,850,091.51
-
| 56,544.01 |
| 2,793,547.50 | |||
| 5.Chengdu Guigu Environmental Tech. |
Co., Ltd.
note 4
6,040,006.77
-
| 245,929.49 |
| 5,794,077.28 | |||
| 6.ChanghongRuba |
ElectricCompany(Private)Ltd.
note 5
-
| 236,565.85 | 236,565.85 | ||||||||
| 7.Hefei Meiling Solar Energy Technology |
Co., Ltd.
note 6
| 1,617,928.00 |
| 1,617,928.00 |
Total 76,982,822.38
-
-
| 16,047,810.77 | 236,565.85 |
| 1,617,928.00 |
| 59,080,517.76 |
Note 1: on 16 December 2014, the Company executed a joint venture agreement with its controlling shareholder Sichuan Changhong Electric Co., LTD, targeting to jointly establish SichuanZhiyijia Network Technology Co., Ltd. On 5 January 2015, Sichuan Zhiyijia Network Technology Co., Ltd was officially incorporated with registered capital of 50 million yuan, among which,the Company made contribution of 15 million yuan with shareholding proportion of 30% and Sichuan Changhong Electric Co., LTD made contribution of 35 million yuan with shareholdingproportion of 70%. In 2019, the Company increase capital of 29,087,040.00 yuan (of which: 20 million yuan reckoned in registered capital and 9,087,040 yuan reckoned in capital reserves) toZhiyijia with shareholding ratio up to 50%.
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
Note 2: subsidiary Sichuan Changhong Air Conditioner Co., Ltd (“Changhong Air Conditioner”) and Hengyouyuan Technology Development Group Co., Ltd. (“Hengyouyuan”) cooperated toestablish Hongyuan Ground Energy Heat Technology Co., Ltd. on 28 October 2015. The registered capital of the company is 50 million yuan, among which, Changhong Air Conditionercontributed 24.5 million yuan, accounting for 49% of the registered capital, and Hengyouyuan contributed 25.5 million yuan, accounting for 51% of the registered capital.Note 3: Sichuan Tianyou Guigu Technology Co., Ltd. was incorporated on 31 March 2015 with registered capital of 100 million yuan. Our subsidiary Changhong Air Conditioner made capitalcontribution of RMB 25 million in cash, accounting for 25% of the registered capital. Chengdu Jiaodao Property Development Company made capital contribution of 20 million yuan,accounting for 20% of the registered capital. Chengdu Southwest Jiaotong University Industry (Group) Co., Ltd made capital contribution of 20 million yuan, accounting for 20% of theregistered capital. Mianyang Investment Holding (Group) Co., Ltd made capital contribution of 5 million yuan, accounting for 5% of the registered capital. Shanghai Zhongcheng XindayaFinancial Information Service Co., Ltd made capital contribution of 5 million yuan, accounting for 5% of the registered capital. Jiangsu Runye Investment Co., Ltd. made capital contribution of10 million yuan, accounting for 10% of the registered capital. In November 2015, Jiangsu Runye Investment Co., Ltd. transferred all its 10% shares to Sichuan Shuye Jiachen Real EstateDevelopment Co., Ltd.;Chengdu Dongyu Shangmao Co., Ltd made capital contribution of 15 million yuan, accounting for 15% of the registered capital. In November 2015, Chengdu DongyuShangmao Co., Ltd. transferred all its 15% shares to Chengdu Dongyu No. 1 Enterprise Management Consulting Partnership (Limited Partnership). In 2016, shareholders meeting of SichuanTianyou Guigu Technology Co., Ltd. agreed to reduce the 50 million Yuan capital, the shareholders are reducing the capital by ratio of share-holding. After capital reduction, subsidiaryChanghong Air conditioner contributed 12.5 million Yuan, representing 25% of the registered capital.Note 4: Chengdu Guigu Environmental Tech. Co., Ltd. was incorporated on 22 May 2013 with registered capital of 40 million yuan. Our subsidiary Changhong Air Conditioner made capitalcontribution of 10 million yuan, accounting for 25% of the registered capital. Chengdu Jiaodao Property Development Company made capital contribution of 8 million yuan, accounting for 20%of the registered capital. Chengdu Southwest Jiaotong University Industry (Group) Co., Ltd made capital contribution of 8 million yuan, accounting for 20% of the registered capital. MianyangInvestment Holding (Group) Co., Ltd made capital contribution of 2 million yuan, accounting for 5% of the registered capital. Shanghai Zhongcheng Xindaya Financial Information Service Co.,Ltd made capital contribution of 2 million yuan, accounting for 5% of the registered capital. Sichuan Shuye Jiachen Property Development Company made capital contribution of 4 million yuan,accounting for 10% of the registered capital. Chengdu Dongyu Shangmao Co., Ltd made capital contribution of 6 million yuan, accounting for 15% of the registered capitalNote 5: Zhongshan Changhong, a subsidiary of the Company, entered into a supplemental joint venture agreement with RUBA Comprehensive Trading Company in 2017, pursuant to which,both parties agreed to increase capital contribution of US$ 1,130,191.00, among which, Zhongshan Changhong subscribed to contribute US$ 452,076.00 (equivalent to 3,001,649.02 yuan on the
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
actual contribution date) according to the original shareholding proportion of 40% and RUBA Comprehensive Trading Company subscribed to contribute US$ 678,115.00 according to theoriginal shareholding proportion of 60%.Note 6: Hefei Meiling Solar Energy Technology Co., Ltd. was incorporated on April 18, 2002, with a registered capital of 10 million yuan. Subsidiary Hefei Meiling Group Holdings Limitedinvested 3.1114 million yuan, accounting for 31.114% of the registered capital; Hefei Huayi Investment Co., Ltd. invested 4.972 million yuan, accounting for 49.72% of the registered capital;Hefei Xingtai Asset Management Co., Ltd. invested 1.9166 million yuan, accounting for 19.166% of the registered capital.
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
11. Other non-current financial assets
Item Ending balance Opening balanceSichuan Changhong Group Finance Co., Ltd. 500,000,000.00 500,000,000.00Huishang Bank Co., Ltd. 5,000,000.00 5,000,000.00Hongyun Fund 43,148,931.34 43,148,931.34
Total 548,148,931.34 548,148,931.34
12. Investment real estate
(1) Investment real estate measured at costs
Item
House and buildings
TotalI. Original book value
1.Opening balance 59,512,503.29
59,512,503.29
2.Increase this period 1,176,028.81
1,176,028.81
(1) Construction in progress transfer-in 1,176,028.81
1,176,028.81
3.Decrease this period
4.Ending balance 60,688,532.10
60,688,532.10
| II. Accumulated depreciation and |
accumulated amortization
1.Opening balance 5,624,041.29
5,624,041.29
2.Increase this period 955,807.64
955,807.64
(1) Provision or amortization 955,807.64
955,807.64
3.Decrease this period
4.Ending balance 6,579,848.93
6,579,848.93III. Impairment loss
IV. Book value
1. Ending book value 54,108,683.17
54,108,683.17
2. Opening book value 53,888,462.00
53,888,462.00
(2) No investment real estate measured by fair value at period-end.
(3) Particular about mortgage of investment property at period-end
Name Original book value
Accumulateddepreciation
Impairment
provision
Book valueHouse and buildings 5,795,017.72 2,245,626.65 3,549,391.07
(4) Investment real estate without property certification held
Item Book value
Reasons for failing to completeproperty rights certificate
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
Item Book value
Reasons for failing to complete
property rights certificateJ04workshop 29,092,598.29 Related property rights in procedureJ03workshop 18,676,006.90 Related property rights in procedureJ20 air compressor station workshop 1,234,175.06 Related property rights in procedureJ18 opening and closing office 571,364.79 Related property rights in procedure
Total 49,574,145.04
13. Fixed assets
Item Book value at period-end Book value at period-beginFixed assets 2,274,347,136.21 2,315,983,923.20Disposal of fixed assets 75,875,517.11 75,875,517.11
Total 2,350,222,653.32 2,391,859,440.31
13.1 Fixed assets
(1) Fixed assets
Item House and buildings
Machinery equipment
Transportequipment
Other equipment
Total
I. Original book value
| I. Original book value |
1,662,291,191.07
| 1.Opening balance |
1,728,214,888.97
34,401,220.30
203,184,998.75
3,628,092,299.09
| 2.Increase this period |
16,222,356.11
42,413,051.09
736,494.32
12,036,823.15
71,408,724.67
(1) Purchase
970,178.52
256,382.11
7,660,875.18
8,887,435.81
(2)
progress transfer-in
16,222,356.11
| Construction in |
41,442,872.57
474,920.37
4,318,988.62
62,459,137.67
| (3) Inventory transfer in for own use |
48,681.99
48,681.99
| (4) Increase in exchange rate changes |
5,191.84
8,277.36
13,469.20
.Decrease this period
150,207.09
| 3 |
28,533,499.04
235,135.32
3,086,722.77
32,005,564.22
(1)
| Dispose or |
retirement
24,715,265.82
235,135.32
3,086,722.77
28,037,123.91
progress
| (2) Transfer to construction in |
3,813,978.57
3,813,978.57
| (3) Temporary estimated decrease |
150,207.09
4,254.65
154,461.74
1,678,363,340.09
| 4.Ending balance |
1,742,094,441.02
34,902,579.30
212,135,099.13
3,667,495,459.54
| II. Accumulated depreciation |
351,313,535.78
| 1.Opening balance |
856,306,300.29
19,765,302.96
82,704,782.54
1,310,089,921.57
| 2.Increase this period |
26,579,485.84
71,541,140.97
1,469,541.61
8,334,487.98
107,924,656.40
1）Accrual26,579,485.84
| （ |
71,541,140.97
1,427,410.94
8,328,445.82
107,876,483.57
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
Item House and buildings
Machinery equipment
Transportequipment
Other equipment
Total
(2) Increase in
exchangerate changes
| exchange rate changes |
42,130.67
6,042.16
48,172.83
| 3.Decrease this period |
23,684,040.00
141,102.29
2,442,688.84
26,267,831.13
(1)
| Dispose or |
retirement
22,745,983.28
141,102.29
2,442,688.84
25,329,774.41
progress
| (2) Transfer to construction in |
938,056.72
938,056.72
| 4.Ending balance |
377,893,021.62
904,163,401.26
21,093,742.28
88,596,581.68
1,391,746,746.84
| III. Impairment loss |
| 1.Opening balance |
1,877,839.70
140,614.62
2,018,454.32
| 2.Increase this period |
| 3.Decrease this period |
616,877.83
616,877.83
(1)
| Dispose or |
retirement
616,877.83
616,877.83
| 4.Ending balance |
1,260,961.87
140,614.62
1,401,576.49
| IV. Book value |
1,300,470,318.47
| 1. Ending book value |
836,670,077.89
13,808,837.02
123,397,902.83
2,274,347,136.21
| 2. Opening book value |
1,310,977,655.29
870,030,748.98
14,635,917.34
120,339,601.59
2,315,983,923.20
The new fixed assets in this period mainly due to the 62,459,137.67 yuan transfer from construction inprocess; decrease of the fixed assets in Current Period mainly including assets dispose for retirement.
(2) No fixed assets temporary idle at period-end.
(3) Fixed assets for collateral at period-end
Name Original book value
Accumulateddepreciation
Impairment
provision
Book valueHouse and buildings 474,545,282.09 117,160,334.15 357,384,947.94
(4) No fixed assets leased through financing lease at period-end
(
5) Fixed assets leased through operating lease at period-end
Item Original book value
Accumulateddepreciation
Impairment
provision
Book valueHouse and buildings 42,544,605.32
10,253,003.46 32,291,601.86
| Machinery |
equipment
34,009,099.62
10,362,209.40 23,646,890.22Other equipment 3,152,980.30
1,321,152.50 1,831,827.80Total79,706,685.24
21,936,365.36 57,770,319.88
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
(6) Fixed assets without property certificate
Item Book value
Reason of not completethe property certificate4# makeshift shelter
4,597,552.10
| Related property rights in |
procedureII section canteen of living area
21,026,734.32
Related property rights in
procedureTesting and experiment center building 39,263,160.93
Related property rights in
procedureRefrigerator packaging, sorting, storage and transportation center 53,776,614.52
Related property rights in
procedureOutsourcing workshop 13,505,765.84
Related property rights in
procedureJ01 workshop 28,514,098.92
| Related property rights in |
procedureJ02 workshop 30,763,846.28
Related property rights in
procedureJ05 evaporator and condenser workshop 26,828,625.32
Related property rights in
procedureJ06 central air-conditioner workshop 17,329,252.30
Related property rights in
procedureJ07 electrical workshop
34,265,486.52
Related property rights in
procedureJ08 packing materials warehouse 4,489,884.40
| Related property rights in |
procedureJ09raw material warehouse 6,174,515.26
Related property rights in
procedureJ10raw material warehouse 4,823,660.24
Related property rights in
procedureJ11raw material warehouse 4,737,640.55
Related property rights in
procedureJ15 house of refrigerant forklift
1,303,436.25
Related property rights in
procedureJ16 chemical storage
1,170,502.00
| Related property rights in |
procedureJ17 chemical storage
1,280,067.04
Related property rights in
procedureJ19 main guard room
321,752.38
Related property rights in
procedureJ19a guard room 203,212.53
Related property rights in
procedureJ19d guard room 148,637.11
Related property rights in
procedureJ19e guard room 148,637.11
| Related property rights in |
procedureJ50 finished product warehouse 16,365,982.26
Related property rights in
procedureJ51 finished product warehouse 15,839,703.21
Related property rights in
procedureJ52 finished product warehouse 11,301,945.86
Related property rights in
procedureJ53 finished product warehouse 12,173,080.55
Related property rights in
procedure
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
Item Book value
Reason of not completethe property certificateJ54 finished product warehouse 11,320,928.79
| Related property rights in |
procedureJ55 finished product warehouse 10,370,030.58
Related property rights in
procedureJ56 finished product warehouse 10,370,030.58
Related property rights in
procedureTotal382,414,783.75
(7) No fixed assets held for sale at period-end
13.2 Disposal of fixed assets
Item Ending balance Opening balance
Reasons for disposal
transferredRelevant assets disposal for reserved lands 75,875,517.11 75,875,517.11
Relocation for land
reservePursuant to the urban planning requirements of the People’s Government of Hefei city, Hefei Land Reserve Centerplans to purchase and store the land use right of an integrated economic development zone of the Company located atLonggang of Hefei with an area of 103,978.9 sq.m. (Approximately 155.9684 mu, Land Use Right Certificate No.:
Dong Guo Yong (2004) Zi No. 0200, the stated use of the land is for industrial purpose). The estimated considerationfor purchasing and storage is RMB74.48 million. The land is mainly used for the Company’s warehouse, productfinishing workshop and the factory of Zhongke Meiling. Pursuant to the purchasing and storage requirements of landuse right, the land will be purchased and stored with vacant possession. In April 2013, the Company completed therelocation of occupants of the premises, and the net fixed assets in relation to the land will transfer as disposal,accounting treatment will be conduct in line with relevant rules upon receiving of the relocation compensation.Pursuant to the urban planning requirements of Hefei Municipal Government and the Government of Feidong county,the land reserve center of Feidong county will purchase and store the land use right of an economic development zonelocated at Feidong county, Hefei city, which is owned by the Company’s subordinate companies, Equator Electric andEquator Home Appliance, respectively, with an area of 19,245.09 sq.m. (Approximately 28.87 mu, Land Use RightCertificate No.: Dong Guo Yong (2008) No. 0366, the stated use of the land is for industrial purpose) and an area of46,161.9 sq.m. (Approximately 69.24 mu, Land Use Right Certificate No.: Dong Guo Yong (2008) No. 0367, the stateduse of the land is for industrial purpose). The total consideration for purchasing and storage is approximately 36 millionyuan, of which the consideration for the land use right owned by Equator Electric and Equator Home Appliance isapproximately 10.59 million yuan and 25.41 million yuan, respectively. The Company has completed the relocation ofoccupants of the premises, and the net fixed assets in relation to the land will transfer as disposal, accounting treatmentwill be conduct in line with relevant rules upon receiving of the relocation compensation.
No impairment of relevant assets disposal for reserved lands at period-end.
14. Construction in progress
Item Ending balance Opening balanceConstruction in progress 70,466,482.26 60,775,088.96
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
Total
70,466,482.26 60,775,088.96
(1) Details of construction in progress
Item
Ending balance Opening balanceBook balance
Impai
rment
provis
ion
Book value Book balance
Impair
mentprovisi
on
Book value
| rment | ||
| Overseas product upgrade supporting box |
shell line, door shell line
competitivenessimprovement projects
| and some old product | 11,603,740.95 |
| 11,603,740.95 | 9,837,906.27 |
| 9,837,906.27 | ||
| Front-end expansion project of Hefei base |
with an annual output of
cabinets
| 10 million refrigerator | 8,156,676.12 |
| 8,156,676.12 | 1,304,336.29 |
| 1,304,336.29 | ||
| Meiling Living Area Apartment Renovation |
Project
| 5,952,142.98 | 5,952,142.98 |
| 3,587,155.98 |
| 3,587,155.98 | ||
| Changhong Air |
Conditioner- relocation
upgrading & expansion
| of production base and | 2,789,062.21 |
| 2,789,062.21 | 2,942,756.39 |
Construction of washingmachine plant
| 2,942,756.39 | ||
| 2,511,504.38 |
| 2,511,504.38 | 3,097,203.54 |
Zhongke Meiling ultra-
| 3,097,203.54 | ||
| low temperature refrigerated storage equipment |
expansion project
| 2,347,522.10 | 2,347,522.10 | |||||
| 2021 efficiency |
improvement
manufacturing plant
| project of large refrigerator | 2,003,938.07 |
| 2,003,938.07 | |||||
| Project of the application of MES system during |
manufacturing
| 1,993,134.07 | 1,993,134.07 |
| 1,670,775.59 |
| 1,670,775.59 | ||
| Planning and Reconstruction Project of Overseas Refrigerator |
Manufacturing Plants
| 1,542,167.91 | 1,542,167.91 | |||||
| Aluminum tube continuous |
extrusion production line
| 1,345,132.74 | 1,345,132.74 |
Meiling PLM Project
| 1,132,593.09 | 1,132,593.09 | |||||
| Fire-fighting facility |
upgrade project
| 1,109,713.12 | 1,109,713.12 |
Technical transformation
Changhong
| project of Zhongshan | 985,492.22 |
| 985,492.22 | 6,926,902.64 |
| 6,926,902.64 | ||
| Production efficiency improvement project of the Line C for the |
| 904,741.38 | 904,741.38 |
| 904,741.38 |
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
Item
Ending balance Opening balanceBook balance
Impai
rment
provision
Book value Book balance
Impair
mentprovisi
on
Book value
| rment | ||
| overseas Refrigerator |
Manufacture Company
base production project
| Overseas inflated evaporator products transferred to Jiangxi | 704,143.91 |
| 704,143.91 | 685,133.49 |
Industrial
| 685,133.49 | ||
| Internet Changhong Meiling |
Promotion Project
| 673,336.60 | 673,336.60 | |||||
| Equipment to be |
installed
| 476,783.77 | 476,783.77 |
| 386,124.34 |
| 386,124.34 | ||
| Construction of |
laboratory(inspection center)
| 451,434.75 | 451,434.75 |
| 1,623,019.14 |
| 1,623,019.14 | ||
| Capacity enlargement and technology |
improvement project forAir-conditionerCompany
| 423,005.50 | 423,005.50 |
| 1,724,400.82 |
The fourth-
| 1,724,400.82 | ||
| phase unmanned vending |
machine and large-
production line
| project of the freezer manufacturing |
company
| 60,679.61 | 60,679.61 |
| 4,049,896.54 |
| 4,049,896.54 | ||
| New overseas case |
molding line project
| 2,404,757.10 |
Other petty projects
| 2,404,757.10 | ||
| 23,299,536.78 |
| 23,299,536.78 | 19,629,979.45 |
Total
| 19,629,979.45 | ||
| 70,466,482.26 |
| 70,466,482.26 | 60,775,088.96 |
(2) Changes in significant construction in progress
Projects
Book balanceat period-begin
Increase in
CurrentPeriod
Transfer tofixed assets in
CurrentPeriod
Other decrease
Book balanceat period-end
Source offunds
60,775,088.96Construction ofwashing machine
plant
| Construction of washing machine | 3,097,203.54 |
| 2,634,420.54 | 3,220,119.70 |
Self-raised/
Raise
| 2,511,504.38 | ||
| Construction of |
laboratory(inspection center)
| 1,623,019.14 | 863,813.82 |
| 2,035,398.21 |
Raise
| 451,434.75 | ||
| Changhong Air |
Conditioner-
| relocation of production base and upgrading & | 2,942,756.39 |
| 6,318,282.03 | 6,471,976.21 |
Self-raised
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
Projects
Book balanceat period-begin
Increase inCurrentPeriod
Transfer tofixed assets inCurrentPeriod
Other decrease
Book balanceat period-end
Source offunds
expansion
(Continued)
Projects
Budget (in 10thousandYuan)
Proportion of
projectinvestment in
budget
Progres
s
Accumulated
amount of
interestcapitalization
expansionincluding:
interestcapitalizedamount of
Current
Period
| including: | Interest |
capitalization rate
ofCurrentPeriod
machine plant
37,121.00 99.30% 99%
| Construction of washing |
| Construction of laboratory |
(inspection center)
10,748.00
86.77% 99%
Conditioner-
| relocation of production base and |
upgrading & expansion
84,791.01 88.63% 99% 2,570,143.02
15. Right-of-use assets
Item House building TotalI. Original book value
1.Opening balance 9,818,834.44 9,818,834.44
2.Increase this period 13,760,631.85 13,760,631.85
(1) Rent in 13,760,631.85 13,760,631.85
3.Decrease this period
4.Ending balance
23,579,466.29 23,579,466.29II. Accumulated depreciation
1.Opening balance
2.Increase this period 3,296,977.97 3,296,977.97
(1) Accrual 3,296,977.97 3,296,977.97
3.Decrease this period
4.Ending balance 3,296,977.97 3,296,977.97III. Provision for impairment
1.Opening balance
2.Increase this period
3.Decrease this period
4.Ending balanceIV. Book value
1. Ending book value 20,282,488.32 20,282,488.32
2. Opening book value 9,818,834.44 9,818,834.44
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
16. Intangible assets
(1) Intangible assets
Item Land use right
Trademarkspecial right
Non-patenttechnology
Other Total
I. Original book
value
| I. Original book |
1.Opening
balance
283,292,439.34
| 869,724,297.57 |
| 532,983,550.68 | 61,676,492.32 |
2.Increase
| 1,747,676,779.91 | ||
| this |
period
| 29,041,182.12 |
| 32,198,081.53 | 61,239,263.65 | ||
| (1) Internal |
research
| 29,041,182.12 |
| 32,198,081.53 | 61,239,263.65 | ||
| 3.Decrease this |
period
| 50,638,109.51 |
(1) Disposal
| 50,638,109.51 | ||
| 50,638,109.51 |
4.Ending balance
| 50,638,109.51 | ||
| 869,724,297.57 |
283,292,439.34
| 511,386,623.29 |
| 93,874,573.85 | 1,758,277,934.05 | ||
| II. Accumulated |
amortization
1.Opening
balance
283,292,439.34
| 179,982,060.86 |
| 308,164,231.17 | 8,457,055.13 |
| 779,895,786.50 | ||
| 2.Increase this |
period
| 9,245,939.53 | 52,900,516.90 |
70,475,493.03
（1）Accrual
| 8,329,036.60 | ||
| 9,245,939.53 |
| 52,900,516.90 | 8,329,036.60 |
| 70,475,493.03 | ||
| 3.Decrease this |
period
| 40,262,970.64 |
(1) Disposal
| 40,262,970.64 | ||
| 40,262,970.64 |
4.Ending balance
| 40,262,970.64 | ||
| 189,228,000.39 |
283,292,439.34
| 320,801,777.43 |
| 16,786,091.73 | 810,108,308.89 | ||
| III. Provision for |
impairment
| 1.Opening |
balance
| 26,420,977.43 |
| 4,508,495.33 | 30,929,472.76 | ||
| 2.Increase this |
period
| 3.Decrease this |
period
| 10,375,138.87 |
(1) Disposal
| 10,375,138.87 | ||
10,375,138.87
10,375,138.87
4.Ending balance
| 16,045,838.56 | 4,508,495.33 |
IV. Book value
| 20,554,333.89 | ||
| 1. Ending book |
value
| 680,496,297.18 | 174,539,007.30 |
| 72,579,986.79 | 927,615,291.27 | ||
| 2. Opening book |
value
| 689,742,236.71 | 198,398,342.08 |
| 48,710,941.86 | 936,851,520.65 |
The intangible assets resulted from internal research takes 3.48% of the balance of intangible assets atperiod-end
(2) No land use right without property certification done at period-end
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
(3) Up to end of the Period, mortgage of intangible assets is as follows:
Name Property certificate serials Area(M
) Net book value Note
Land use
right
HGYJCZi No.: 0121 27,120.22 17,377,492.85
| Land use | |||
| Land use |
right
477,550.03 236,186,360.68
| Wan (2019) Property right of Hefei No.: 1148244/1148249/1148243/1148240/1148248/1148246/1148241/1148238/1149101/1148242/1148245/1148239/1148237/1148250/1148247/1149102 | ||||
| Land use |
right
33,383.10 13,370,649.71
| Wan (2019) Property right of Feixi County No.: 0061435/0061445 | ||||
| Land use |
right
82,850.51 18,413,709.09
| Wan (2019) Property right of Feixi County No.: 0061456/0061447/0061438/0061440/0061452/0061450/0061430/0061657 |
Total 620,903.86 285,348,212.33
17. Development expense
Item Opening balance
Increase this period Decrease this period
EndingbalanceInternaldevelopmentexpenditure
Oth
er
Included incurrent profits
and losses
Confirmed asintangible assets
Oth
erTechnologydevelopmentfor Air-conditioner
| 27,997,731.79 |
| 49,312,977.31 |
49,678,127.46
| 48,735.48 | 27,583,846.16 |
Technologydevelopmentfor refrigerator
| 45,030,709.77 | 35,276,613.99 |
11,561,136.19
| 68,746,187.57 |
Total
| 73,028,441.56 | 84,589,591.30 |
61,239,263.65
| 48,735.48 | 96,330,033.73 |
18. Goodwill
(1) Original value of goodwill
Invested enterprise
Openingbalance
Increase this period Decrease this period
Ending balanceFormatio
n fromenterprise
merger
Other
Formatio
n fromenterprise
merger
Other
Limited
| Hefei Meiling Group Holdings | 3,553,367.77 |
| 3,553,367.77 |
Total
| 3,553,367.77 |
| 3,553,367.77 |
(2) Impairment loss of goodwill
Invested enterprise
Openingbalance
Increase this
period
Decrease this period
Endingbalance
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
Accrual Other Accrual Other
Hefei Meiling Group
Holdings Limited
3,553,367.77
| Hefei Meiling Group |
3,553,367.77
Total 3,553,367.77
3,553,367.77
Note: The Company’s goodwill has been fully accrued for impairment reserves at period-end.
19. Deferred income tax assets
(1) Deferred income tax assets without the offset
Item
Ending balance Opening balanceDeductibletemporarydifference
Deferredincome taxassets
Deductibletemporarydifference
Deferredincome tax
assets
Deferred income tax assets recognized
from assets impairment
| Deferred income tax assets recognized | 124,677,573.63 |
| 18,701,636.02 | 122,853,362.96 |
| 18,427,787.28 | ||
| Deferred income tax assets recognized |
from accrual liability
| 23,102,517.39 | 3,465,377.61 |
| 55,035,910.31 | 8,255,386.55 | ||
| Deferred income tax assets recognized |
from Dismission welfare
| 11,752,793.14 | 1,762,918.97 |
| 13,326,014.64 | 1,998,902.20 | ||
| Deferred income tax assets recognized |
from deferred income
| 101,553,424.88 | 15,233,013.73 |
| 107,392,156.36 | 16,108,823.46 |
Deferred income tax assets recognized from ir-reparable losses
| 452,903,790.07 | 67,931,658.90 |
| 545,833,222.08 | 81,874,983.31 |
Accrued income tax assets
| 4,290,952.45 | 643,642.87 |
| 3,467,314.27 | 520,097.14 |
Total
| 718,281,051.56 | 107,738,248.10 |
| 847,907,980.62 | 127,185,979.94 |
The Company’s long-term equity investment impairment provisions are the investments in its subsidiary MeilingCandy Washing Machine Co., Ltd., expected to be cancelled in 2021, and the Company also confirmed deferred incometax assets while confirming the impairment provisions. The subsidiaries have unrecovered losses, at the consolidationlevel, the deferred income tax assets recognized in the Company’s long-term equity investment impairment provisionsare adjusted to be the deferred income tax assets generated from the recoverable losses.
(2) Deferred income tax liabilities without the offset
Item
Ending balance Opening balance
temporarydifferences
| Taxable | Deferred |
income tax
liability
temporarydifferences
| Taxable | Deferred |
income tax
liabilityRecognized by fixed assets depreciation
| 27,081,715.20 | 4,062,257.28 |
| 29,817,828.77 | 4,472,674.32 |
Recognized by changes in fair value
| 19,054,056.75 | 2,858,108.51 |
| 40,686,053.41 | 6,102,908.01 |
Total
| 46,135,771.95 | 6,920,365.79 |
| 70,503,882.18 | 10,575,582.33 |
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
(3) Details of unrecognized deferred income tax assets
Item Ending balance Opening balanceDeductible temporary difference 134,821,799.40
110,167,308.91Deductible loss 941,947,487.33
880,692,110.28Total 1,076,769,286.73
990,859,419.19
20. Short-term loans
Category Ending balance Opening balanceLoan in pledge 259,984,823.95 100,000,000.00Guaranteed loan 23,160,000.00 66,180,000.00Loan in credit 583,901,500.00 904,237,500.00Bill financing 257,880,000.00Interest payable
2,236,871.73 7,911,550.55Total
869,283,195.68
| 1,336,209,050.55 |
Short-term loans at Current Period-end:
1) The Company entered into a Forfaiting Business Contract with Hefei Shouchun Branch of BCM with 360 days in
term. Term of borrowing is from 29 Sept. 2020 to 24 Sept. 2021. Fixed annual interest rate of 3%, the loan amount is200,000,000.00 Yuan.
2) The Company entered into a Forfaiting Business Contract with Anhui Branch of Bank of Communications Co., Ltd.
with 237 days in term. Term of borrowing is from 30 Mar. 2021 to 22 Nov. 2021. Fixed annual interest rate of 3.40%,the loan amount is 59,984,823.95 Yuan.
3) The Company entered into a Loan Contract with Hefei Branch of Ping An Bank Co., Ltd. with 364 days in term.
Term of borrowing is from 14 Dec. 2020 to 13 Dec. 2021. Fixed annual interest rate of 3.35%, the loan amount is10,000,000.00 Yuan.
4) The Company entered into a Loan Contract with Hefei Luyang Branch of Hangzhou Bank Co., Ltd. with 362 days in
term. Term of borrowing is from 4 Mar. 2021 to 1 Mar. 2022. Fixed annual interest rate of 3.45%, the loan amount is30,000,000.00 Yuan.
5) The Company entered into Cross-border Participation in Financing Business Financing Notice with Hefei Baohe
District Branch of Agricultural Bank of China Co., Ltd. with 180 days in term. Term of borrowing is from 5 Mar. 2021to 1 Spet. 2021. Fixed annual interest rate of 2.66%, the loan amount is 99,500,000.00 Yuan.
6) The Company entered into Application for opening a domestic letter of credit with Anhui Branch of Bank of China
Limited with 179 days in term. Term of borrowing is from 12 Mar. 2021 to 7 Spet. 2021. Fixed annual interest rate of
3.63%, the loan amount is 25,000,000.00 Yuan.
7) The Company entered into Weishang Bank Domestic Letter of Credit Forfaiting Business Contract with Hefei
Economic Development Zone Branch of Huishang Bank Co., Ltd. with 359 days in term. Term of borrowing is from 16Mar. 2021 to 10 Mar. 2022. Fixed annual interest rate of 3.35%, the loan amount is 30,000,000.00 Yuan.
8) The Company entered into a Cross-border financing loan business contract with Hefei Luyang Branch of China
Construction Bank Corporation with 12 months in term. Term of borrowing is from 24 Mar. 2021 to 23 Mar. 2022.Loan rate of 3.55%, the loan amount is 100,000,000.00 Yuan.
9) The Company entered into a Contract for Loans of Working Capital with Anhui Branch of Bank of China with 184
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
days in term. Term of borrowing is from 27 May 2021 to 27 Nov. 2021, and counted from the actual withdrawal date,every 6 months is a floating period, current annual interest rate of 3.30%, the loan amount is 100,000,000.00 Yuan.10) The Company entered into Weishang Bank Domestic Letter of Credit Forfaiting Business Contract with HefeiEconomic Development Zone Branch of Huishang Bank Co., Ltd. with 179 days in term. Term of borrowing is from 25Jun. 2021 to 21 Dec. 2021. Fixed annual interest rate of 2.80%, the loan amount is 20,000,000.00 Yuan.
11) The Company entered into Contract for the assignment of the seller’s claims without recourse (domestic forfaiting
business) under a domestic letter of credit with Hefei Branch of China Everbright Bank Co., Ltd. Term of borrowing isfrom 25 Jun. 2021 to 21 Dec. 2021. Loan rate of 2.70%, the loan amount is 100,000,000.00 Yuan.
12) The Company entered into Domestic Letter of Credit Trade Financing Line of Credit Contract with Hefei Branch of
China Guangfa Bank Co., Ltd. Term of borrowing is from 29 Jun. 2021 to 27 Dec. 2021. Loan rate of 3.05%, the loanamount is 17,500,000.00 Yuan.
13) The Company entered into a Contract for Loans of Working Capital with Hefei Baohe District Branch of
Agricultural Bank of China Co., Ltd. with 182 days in term. Term of borrowing is from 25 Jun. 2021 to 24 Dec. 2021,and counted from the actual withdrawal date, 6-month floating interest rate composed of 6-month LIBOR + 0.45%spread, current interest rate of 0.61525%, the loan amount is USD 15,000,000.00.
14) Subsidiary Zhongke Meiling Cryogenic Technology Co., Ltd. entered into a working capital loan contract with
Hefei Branch of Bank of China. Term of borrowing is from 25 Nov. 2020 to 25 Nov. 2021. Fixed interest rate of 3.3%,the loan amount is 10,000,000.00 Yuan.
15) Subsidiary Zhongke Meiling Cryogenic Technology Co., Ltd. entered into a RMB Capital Loan Contract with
Huaining Road Branch of Hefei Science and Technology Rural Commercial Bank. Term of borrowing is from 31 Mar.2021 to 30 Mar. 2022. Fixed interest rate of 3.85%, the loan amount is 5,000,000.00 Yuan.
16) Anhui Tuoxing Technology Co., Ltd., a wholly-owned subsidiary of Zhongke Meiling Cryogenic Technology Co.,
Ltd., entered into a working capital loan contract with Hefei Branch of Bank of China. Term of borrowing is from 1Apr.. 2021 to 31 Mar. 2022. Fixed interest rate of 3.65%, the loan amount is 5,000,000.00 Yuan.
17) Subsidiary Changhong Ruba Trading Company(Private) Limited applied for a short-term loans of 400,000,000.00
Rupees to Lahore Branch of ICBC, loans term is from 17 December 2020 to 5 November 2021 with repayment ofprincipal in installments. As of the reporting period, Pakistani subsidiary has repaid the principal of Rs. 200,000,000.00and the remaining outstanding principal Rs. 200,000,000.00 is borrowed at an interest rate of 0.9% over the lendingrate issued by the Central Bank of Pakistan.
21. Trading financial liability
Name Ending balance Opening balanceTrading financial liability
2,746,170.22
4,584,076.51Including: Derivative financial liability
2,746,170.22
4,584,076.51
22. Note payable
Item
Ending balance Opening balanceBank acceptance
4,754,969,589.72 4,232,731,220.17Trade acceptance
233,384,300.00 206,876,762.17Total
4,988,353,889.72 4,439,607,982.34
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
23. Account payable
(1) Account payable
Item Ending balance Amount at year-beginTotal 3,669,199,259.64 2,851,999,684.30
Including: Amount aged over 1 year
52,848,517.19 74,369,337.19
(2) No major account payable with over one year book age at period-end.
24. Contract liabilities
Item Ending balance Opening balanceTotal
344,400,472.19
Including: Amount aged over 1 year
| 522,550,891.28 |
Including: Amount aged over 1 year 19,193,682.89
| 91,437,631.00 |
25. Wages payable
(1) Category
Item Opening balance Increase this period Decrease this period Ending balance
262,858,303.46
| Short-term compensation |
| 711,775,979.24 | 783,367,463.54 |
| 191,266,819.16 | ||
| After-service welfare- defined |
contribution plans
23,650,290.96
| 71,818,678.72 |
| 92,960,358.49 | 2,508,611.19 |
Dismiss welfare
3,813,181.63
| 2,073,812.28 |
| 2,838,920.78 | 3,048,073.13 |
Total 290,321,776.05
| 785,668,470.24 |
| 879,166,742.81 | 196,823,503.48 |
(2) Short-term compensation
Item Opening balance Increase this period Decrease this period Ending balanceWages,
subsidies
| bonuses, allowances and | 246,130,770.29 |
| 619,152,779.93 | 681,211,248.26 |
Welfare for workers and staff
| 184,072,301.96 | ||
| 1,156,146.23 |
| 20,433,826.75 | 21,353,532.55 |
Social insurance
| 236,440.43 | ||
| 10,194,113.84 |
| 31,499,514.77 | 40,594,845.01 |
Including: Medical insurance
| 1,098,783.60 | ||
| 9,491,779.25 |
| 28,451,042.96 | 36,943,294.26 |
Work injury insurance
| 999,527.95 | ||
| 461,693.28 |
| 2,125,308.74 | 2,567,467.80 |
Maternity insurance
| 19,534.22 | ||
| 240,641.31 |
| 923,163.07 | 1,084,082.95 |
Housing accumulation fund
| 79,721.43 | ||
| 4,900,053.99 |
| 39,030,044.60 | 38,722,676.19 |
Labor union expenditure andpersonnel education expense
| 5,207,422.40 | ||
| 477,219.11 |
| 1,659,813.19 | 1,485,161.53 |
Total
| 651,870.77 | ||
| 262,858,303.46 |
| 711,775,979.24 | 783,367,463.54 |
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
(3) Defined contribution plans
Item Opening balance Increase this
period
Decrease this
period
Ending balanceBasic endowment insurance
21,115,136.67
| 21,115,136.67 | 68,912,405.91 |
| 89,308,840.17 | 718,702.41 |
Unemployment insurance
| 2,535,154.29 | 2,906,272.81 |
| 3,651,518.32 | 1,789,908.78 |
Total
23,650,290.96
| 71,818,678.72 |
| 92,960,358.49 | 2,508,611.19 |
26. Tax payable
Item Ending balance Opening balanceValue-added tax
63,255,410.89
41,769,712.31Enterprise income tax
12,811,692.22
9,941,386.84Individual income tax
2,116,661.65
2,781,283.48Urban maintenance and constructiontax
5,297,973.23
4,056,939.25
3,837,356.88
| Real estate tax |
6,370,190.14
1,551,010.83
| Land use tax |
2,701,128.78
3,801,773.07
| Educational surtax |
2,977,254.61
2,917,008.35
| Stamp tax |
2,213,950.91
Conservancy Projects
582,690.92
| Construction fund of Water |
643,321.87Treatment fund for abandon electrics& electronics
19,946,703.00
13,835,511.00Other 3,601,429.93
2,391,754.71Total 119,719,710.97
89,682,433.90
26. Other account payable
Item Ending balance Opening balanceDividend payable
19,567,820.81 4,466,628.25Other account payable
858,847,066.64 720,235,058.47Total
878,414,887.45 724,701,686.72
27.1 Dividends payable
Item Ending balance Opening balanceSichuan Changhong Electric Co., Ltd. 12,422,886.20
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
Hefei Industry Investment Holding (Group) Co., Ltd. 2,391,170.05China Life Insurance (Group) Company 288,404.82 263,813.22China Life Insurance Group Co., Ltd. 432,607.23 395,719.83BOC- Fullgoal Tianyi Securities Investment Fund
153,697.50 153,697.50Hefei Branch of BOC
360,506.00 329,766.50Hefei collective industry association
360,505.44 329,765.99Entrust Investment Wuhu of Provincial ABC
288,404.82 263,813.22Other units
2,869,638.75 2,730,051.99Total 19,567,820.81 4,466,628.25
27.2 Other account payable
(1) Other account payable by nature
Nature Ending balance Opening balance
1.Accrued expenses (expenses occurred without reimbursed)
436,862,092.27 387,297,440.24
2. Receivables received temporary and deducted temporary
35,919,383.77 30,995,522.33
3.Deposit, margin
164,355,310.79 163,264,455.70
4.Not the come-and-go with related parties in statement scope
218,998,430.45 126,828,746.47
5. Other
2,711,849.36 11,848,893.73Total 858,847,066.64 720,235,058.47
(2) At end of Current Period, the major other account payable with account age over one year mainly
refers to the sale of margin.
28. Non-current liability due within one year
Item Ending balance Opening balanceLong-term loan principal and interest due within one year 413,561,652.50
407,141,888.08Long term account payable due within one year
520,519.27
683,262.66Lease liabilities due within one year
7,581,525.67
5,000,280.67Total 421,663,697.44
412,825,431.41
29. Other current liabilities
Item Ending balance Opening balancePending sales tax
22,195,014.96 20,376,696.94Factoring fees payable
906,702.57 2,547,001.79Total
23,101,717.53 22,923,698.73
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
30. Long term borrowings
(1) Category of long term borrowings
Category Ending balance Amount at year-beginLoan in mortgage
178,000,000.00 188,000,000.00Interest payable 231,439.30
Total 178,000,000.00 188,231,439.30
(2) Long-term borrowings at period-end
Loan from
Borrowingday
Returningday
Foreigncurre
ncy
Interest
rate
Ending balance
(RMB)
Openingbalance (RMB)
EIBC (Export-Import Bank)
Anhui Province Branch
Note 1
2019/12/23
| EIBC (Export-Import Bank) |
2026/11/25
RMB
4.455% 80,000,000.00
| 90,000,000.00 |
EIBC (Export-
Anhui Province Branch
Note 2
2020/3/26
| Import Bank) |
2026/11/25
RMB
4.455% 98,000,000.00
| 98,000,000.00 |
Total
| 178,000,000.00 |
188,000,000.00
Note 1: The Company signed the "Loan Contract (Promoting the Opening-up of Loans in China - Fixed Assets)" withthe Export-Import Bank of China Anhui Branch, the Company's investment real estate, fixed assets and intangibleassets are used as mortgage for the loan. The term of the loan is from December 23, 2019 to November 25, 2026, theinterest rate of the loan is determined according to the market quotation rate of the loan with a term of more than 5years reduced by 0.195%, which fluctuates annually, and the amount of the loan is 100,000,000.00 yuan. According tothe repayment plan agreed with the bank, the Company has repaid 6,000,000.00 yuan. It plans to repay 4,000,000.00yuan on December 25, 2021 and repay 10,000,000.00 on June 25, 2022, a total of 14,000,000.00 yuan has beenreclassified to non-current liabilities due within one year. The ending balance is 80,000,000.00 yuan.Note 2: The Company signed the "Loan Contract (Promoting the Opening-up of Loans in China - Fixed Assets)" withthe Export-Import Bank of China Anhui Branch, the Company's investment real estate, fixed assets and intangibleassets are used as mortgage for the loan. The term of the loan is from 26 March 2020 to 25 November 2026, the interestrate of the loan is determined according to the market quotation rate of the loan with a term of more than 5 yearsreduced by 0.195%, which fluctuates annually, and the amount of the loan is 98,000,000.00 yuan. Balance at period-endamounted to 98,000,000.00 yuan.
31. Lease liability
Item Ending balance Opening balanceHouse building 12,529,575.32 4,783,483.43
Total 12,529,575.32 4,783,483.43
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
32. Long-term payable
Item Ending balance Opening balanceLong-term account payable 175,323.91Special payable 1,433,821.62 1,530,000.00
Total 1,433,821.62 1,705,323.91
32.1 Classify by nature
Nature Ending balance Opening balanceFinancing lease 175,323.91
32.2 Special payable
Item
Openingbalance
Increase thisperiod
Decreasethis period
Endingbalance
ReasonSpecial
funds for
technological
| transformation from |
Zhongshan Changhong
1,530,000.00
96,178.38 1,433,821.62
| Technology plan project in Zhongshan |
City
33. Long-term wage payable
Item Ending balance Opening balanceDismissal welfare 9,175,955.85
10,571,526.69
According to the internal early retirement policy, the long-term payable dismissal welfare bears by theCompany up to end of Current Period amounting to9,175,955.85 yuan
34. Accrual liability
Item Ending balance Opening balance ReasonProduct quality guarantee
note1
10,531,572.82 14,487,294.50 Guarantee of productGuarantee fund for quality service
note112,570,944.57 47,905,440.57 Guarantee of productTotal 23,102,517.39 62,392,735.07
Note 1: Product quality deposit is the maintenance expense provided by the Company under the national policy, whilequality service special guarantees capital is the warranty costs provided for product quality in addition to such policy.Parts of the commitments on product quality assurance beyond the national three guarantees policy are expired inPeriod, the accrual liability that have not been anticipated has written-off in Current Period, actually 35,187,360.00Yuan written-off.
35. Deferred income
(1) Classification of deferred income
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
Item
Openingbalance
Increase thisperiod
Decrease this
period
Endingbalance
ReasonGovernment subsidies---
subsidies of development
project
136,876,337.09 3,446,100.00 11,511,555.00 128,810,882.09Government subsidies---subsidies of Relocation
40,501,113.03 1,959,072.83 38,542,040.20Total 177,377,450.12 3,446,100.00 13,470,627.83 167,352,922.29
(2) Government subsidy
Item
Openingbalance
Newsubsidy in
CurrentPeriod
Amountreckoned intoother income inCurrent Period
Otherchanges
Endingbalance
Assetsrelated/Income
relatedDemonstration
subsidies of developmentfactory constructionfor the intelligentmanufacturing of
intelligent air-conditioner
| factory construction for the intelligent manufacturing of | 49,500,000.00 |
3,132,911.40
Assets relatedDemolition
| 46,367,088.60 | ||
| compensation of |
ChanghongMeiling
| 38,316,384.47 |
1,069,128.53
Assets related
| 37,247,255.94 | ||
| Adaptability improvement on new coolants |
production
| 9,459,926.70 |
1,182,490.86
Assets related
| 8,277,435.84 | ||
| Centre for external cooperation of the |
environmentalprotection
| 7,614,900.00 | 846,100.00 |
257,877.27
Assets related
| 8,203,122.73 | ||
| Subsidy for |
industrialdevelopmentpolicy from Hefei
2018
| for first half of | 7,794,000.00 |
625,000.00
Assets related
| 7,169,000.00 | ||
| Changhong Air |
Conditioner-
expansion
| relocation of production base and upgrading & | 6,880,000.00 |
| 6,880,000.00 |
Assets related
building
| Key chip and module for transducer used and detection capacity | 6,840,000.00 |
| 6,840,000.00 |
Assets related
technological
| transformation of |
| 3,750,000.00 |
312,500.00
Assets related
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
Item
Openingbalance
Newsubsidy in
CurrentPeriod
Amountreckoned intoother income inCurrent Period
Otherchanges
Endingbalance
Assetsrelated/Income
related
industrial strong
base
| industrial strong |
| RESEARCH AND APPLICATION OF THE VISA |
(VARIABLEFREQUENCYVOLUMEINTEGRATEDINTELLIGENTAIR-CONDITIONER)
| 4,462,790.72 |
704,651.16
Assets related
| 3,758,139.56 | ||
| Special fund, government subsidy |
CZ059001
| 4,200,000.00 |
| 4,200,000.00 |
Assets related
industrial
| development policy from Hefei for |
second half of 2019
| 5,365,650.00 |
447,137.50
Assets related
| 4,918,512.50 | ||
| Subsidy for |
industrial
half of 2020
| development policy from Hefei for first | 3,440,583.33 |
217,300.00
Assets related
| 3,223,283.33 | ||
| Government subsidy for new plant |
construction -
cryogenicrefrigerationequipment
| industrialization of | 3,291,666.67 |
250,000.00
Assets related
| 3,041,666.67 | ||
| Subsidies for |
intelligent
development zone
| transformation & upgrading of enterprises from the new industrialization policy in economic | 3,280,739.58 |
302,837.50
Assets related
| 2,977,902.08 | ||
| 2020 Triple One Innovation Project in |
Anhui Province
| 2,600,000.00 |
54,166.67
Assets related
| 2,545,833.33 | ||
| Industrialization of intelligent white |
household
and development
| appliances software platform and typical application research | 2,303,030.33 |
363,636.36
Assets related
| 1,939,393.97 | ||
| Research and application of the MCU chip for |
inverter control
| 2,300,000.00 |
| 2,300,000.00 |
Assets related
| Special funds for strategic emerging | 2,000,000.00 |
| 2,000,000.00 |
Assets related
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
Item
Openingbalance
Newsubsidy in
CurrentPeriod
Amountreckoned intoother income inCurrent Period
Otherchanges
Endingbalance
Assetsrelated/Income
related
industry and high-
end growth industry
| industry and high- |
| Equipment subsidy for the industrial base technical renovation from Economic and |
InformationCommission
| 1,547,083.33 |
117,500.00
Assets related
| 1,429,583.33 | ||
| Demolition compensation of |
Jiangxi Meiling
| 2,184,728.56 |
889,944.30
Assets related
| 1,294,784.26 | ||
| Subsidy from Zhongshan Finance Bureau (CZ028001 provincial special |
project 2019)
| 1,397,706.70 |
152,823.24
Assets related
| 1,244,883.46 | ||
| Upgrade project for the production line of Mianyang Meiling Intelligent |
Refrigerator
| 1,316,666.72 |
98,749.98
Assets related
| 1,217,916.74 | ||
| Subsidy for |
equipment
project in 2017
| purchasing for Hefei Tech. Improvement | 1,179,470.00 |
89,580.00
Assets related
| 1,089,890.00 | ||
| Promotion of the |
energy-
air conditioner
| saving room | 858,762.97 |
105,154.62
Assets related
| 753,608.35 | ||
| Subsidy for purchase of R & D instruments and |
equipment
| 882,105.20 |
91,056.26
Assets related
| 791,048.94 | ||
| Emerging Industry Base Fund Support |
Item
| 620,000.00 |
| 620,000.00 |
Assets related
volumeenvironmental
| protection and energy saving |
freezer)
| 761,031.21 |
152,206.26
Assets related
Robot policy-
| 608,824.95 | ||
| rewards for |
purchasing robots
| 555,156.26 |
35,062.50
Assets related
| 520,093.76 | ||
| 2018 Zhongshan Special fund for |
industrialdevelopment -
| Special topic of technical | 464,508.75 |
132,861.90
Assets related
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
Item
Openingbalance
Newsubsidy in
CurrentPeriod
Amountreckoned intoother income inCurrent Period
Otherchanges
Endingbalance
Assetsrelated/Income
related
transformation
Technical
| transformation |
| transformation of the |
Athena project
| 869,687.52 |
474,375.00
Assets related
| 395,312.52 | ||
| Special fund for |
technicalimprovement
| 416,912.46 |
48,004.50
Assets relatedTechnical
| 368,907.96 | ||
| transformation of |
refrigeratorevaporatorworkshop
| 551,324.77 |
44,829.00
Assets relatedTechnicaltransformationsubsidy
| 506,495.77 | |||
| 209,218.33 |
15,889.98
Assets related
| 193,328.35 | ||
| Technical renovation of air conditioner |
production line
| 190,767.27 |
30,601.92
Assets related
| 160,165.35 | ||
| Special fund for |
technicalimprovement
| 484,047.64 |
51,904.80
Assets related
| 432,142.84 | ||
| Subsidy for the development on production line technical reform for |
green-friendly high-quality metal pipe
| 88,600.63 |
20,446.32
Assets related
| 68,154.31 | ||
| Subsidy for |
characteristic
entrepreneurship
| carrier project from Hefei economic & |
development zone
| 2,000,000.00 |
2,000,000.00
Assets relatedTotal
| 177,377,450.12 | 3,446,100.00 |
13,470,627.83
| 167,352,922.29 |
36. Share capital
Item Opening balance
Change during the period (+
-)
Ending balanceNew shares
issued
Bonusshare
Sharestransferred fromcapital reserve
Other SubtotalTotal shares 1,044,597,881.00 1,044,597,881.00
37. Capital reserve
Item Opening balance
Increase this
period
Decrease this period Ending balanceShare premium 2,635,663,966.42
、
3,735.20
2,635,660,231.22
reserve
48,173,262.70
| Other capital |
48,173,262.70
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
Item Opening balance
Increase this
period
Decrease this period Ending balanceTotal 2,683,837,229.12
3,735.20
2,683,833,493.92
Note: Changes in equity premium this year were due to: the handling fee for repurchasing B shares.
38. Treasury stock
Item Opening balance Increase this
period
Decrease thisperiod
Ending balanceRepurchase of B shares
9,929,336.18 7,029,141.10
16,958,477.28Total
9,929,336.187,029,141.10
16,958,477.28Note: The Company convened the 40th meeting of the ninth board of directors, the 21st meeting of the ninth board ofsupervisors, and the 3rd extraordinary general meeting of shareholders in 2020 on July 27, 2020 and August 18, 2020,which reviewed and approved the Proposal on the Repurchase of Certain Domestically Listed Foreign Shares (BShares) of the Company. As of June 30, 2021, a total of 9,377,869 shares were repurchased at a repurchase price of nomore than HK$2.21 per share (tax included), the total repurchase transaction price was HK$20,112,237.81, and thereal-time exchange rate was equivalent to 16,958,477.28 yuan.
39. Other comprehensive income
Item Opening balance
Current Period
Ending balance
Account before
income tax inCurrent Period
| Less: written |
in othercomprehensive income in
previousperiod and
carriedforward to
gains and
losses in
current
period
Less
Incometaxexpenses
Belong to
parentcompany after
tax
Belong tominority
| ： | shareholders |
after tax
Other comprehensive income re-divided into gains/losses
Othercomprehensiveincome that canbe converted to
| profit or loss under the |
equity method
-
| 177,046.32 |
-
| 177,046.32 |
-
Conversiondifference
| 177,046.32 | ||
| arising from |
foreigncurrency
-
| financial | 21,451,084.17 |
-
| 1,080,704.27 |
-
| 1,094,317.03 | 13,612.76 |
-
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
Item Opening balance
Current Period
Ending balance
Account before
income tax inCurrent Period
| Less: written |
in othercomprehensive income in
previousperiod and
carriedforward to
gains and
losses in
current
period
Less
Incometaxexpenses
Belong to
parentcompany after
tax
Belong tominority
| ： | shareholders |
after tax
Total
-21,451,084.17
-1,257,750.59
-1,271,363.3
13,612.76
-22,722,447.5
40. Surplus reserves
Item Opening balance
Increase thisperiod
Decrease thisperiod
Ending balanceStatutory surplus reserve 300,757,088.27 300,757,088.27Discretionary surplusreserve
115,607,702.16 115,607,702.16Total 416,364,790.43 416,364,790.43
41. Retained profit
Item Current Period Last YearAmount at the end of last year 740,754,202.23 884,127,743.42Add: adjustment from undistributed profit at period-begin
statement
Including: retroactive adjustment by Accounting
Standards for Business Enterprise
change of accounting policyCorrection of former material error
Including: retroactive adjustment by AccountingChange of combination scope under
common control
Amount at the beginning of this period740,754,202.23
| Change of combination scope under | |
884,127,743.42Add: net profit attributable to shareholders of parentcompany for this period
37,157,511.54
-85,565,716.91Less: withdraw of statutory surplus reserve
withdraw of discretionary surplus reserve 5,577,930.23Withdraw of general risk provision
Dividend payable for ordinary shares 51,776,420.60 52,229,894.05
Dividend of ordinary shares transferred to share
capital
Ending balance
| Dividend of ordinary shares transferred to share | |
| 726,135,293.17 |
740,754,202.23
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
42. Operation income and operation cost
(1) Operation income and operation cost
Item
Current Period Last PeriodIncome Cost Income CostMainbusiness
9,076,019,575.56
| 9,076,019,575.56 | 7,709,772,571.05 |
6,268,491,126.30
| 5,248,478,697.42 |
Otherbusiness
| 526,739,769.73 | 467,458,625.12 |
527,369,610.69
| 505,371,191.93 |
Total
| 9,602,759,345.29 | 8,177,231,196.17 |
6,795,860,736.99
| 5,753,849,889.35 |
(2) Main business classified according to product
Product
Current Period Last PeriodOperation income Operation cost Operation income Operation costRefrigerator,freezer
| 4,083,961,202.33 | 3,333,608,452.02 |
| 2,920,923,251.77 | 2,377,765,236.89 |
Air-conditioner
| 3,958,753,350.50 | 3,540,481,498.57 |
| 2,595,885,454.11 | 2,247,295,670.56 |
Washingmachine
| 322,671,076.35 | 245,250,873.36 |
| 179,892,246.84 | 148,034,172.04 |
Smallhousehold
bathroom
| appliances and kitchen and | 571,948,185.39 |
| 474,186,822.18 | 512,769,500.40 |
Other
| 426,489,024.05 | ||
| 138,685,760.99 |
| 116,244,924.92 | 59,020,673.18 |
Total
| 48,894,593.88 | ||
| 9,076,019,575.56 |
| 7,709,772,571.05 | 6,268,491,126.30 |
(3) Main business classified according to sales region
Region
Current Period Last PeriodOperation income Operation cost Operation income Operation costDomestic
5,248,478,697.426,392,384,758.43
| 6,392,384,758.43 | 5,212,930,284.17 |
| 3,936,852,798.41 | 3,251,061,917.12 |
Overseas
| 2,683,634,817.13 | 2,496,842,286.88 |
| 2,331,638,327.89 | 1,997,416,780.30 |
Total
| 9,076,019,575.56 | 7,709,772,571.05 |
| 6,268,491,126.30 | 5,248,478,697.42 |
Top five clients have income in sales of 5,140,635,916.75 yuan in total, a 53.53% in total operationincome.
43. Business tax and extra charges
Item Current Period Last PeriodTreatment fund for abandon electrics & electronics 24,442,938.00
23,183,817.00Real estate tax 9,677,275.48
8,958,027.86Stamp duty 7,917,813.37
5,581,068.92City construction tax 6,500,216.07
5,891,358.89
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
Item Current Period Last PeriodExtra charge for education and local education surcharge 5,016,280.65
4,600,301.45Land use tax 4,111,310.87
3,429,180.26Water fund 3,408,779.05
3,328,943.43Other 3,117.48
332,015.42Total 61,077,730.97
55,304,713.23
44. Sales expense
Item Current Period Last PeriodSalary and extra charges 265,425,977.62 255,283,621.81Transport expenses 250,818,152.26 211,841,082.72Market support expenses 146,558,469.94 135,417,268.91Air conditioner installation expenses 132,710,203.95 114,700,395.35National three guarantees expense 62,323,679.78 90,184,296.10Storage lease expenses 58,782,655.17 47,400,139.04Travelling expenses 16,450,518.67 12,373,271.22Business activity expenses 8,575,130.77 2,617,936.49Depreciation expenses 4,209,609.23 3,944,399.06Vehicle consumption 3,175,822.45 2,050,607.05Advertising expenses 1,247,421.22 352,891.37House-lease expenses 1,207,473.65 781,344.62Other expenses 33,320,814.23 47,036,174.49
Total 984,805,928.94 923,983,428.23
45. Administration expense
Item Current Period Last PeriodSalary and social insurance etc. 95,733,835.85
79,407,413.87Depreciation 12,053,427.34
9,232,289.11Amortized intangible assets 9,407,284.87
10,046,746.48Water and electricity fee 3,137,429.43
1,773,141.17Business activities fee 2,501,946.80
1,195,638.78Property insurance fee 1,557,260.98
1,425,753.98Domestic travelling fee 1,462,423.83
1,315,916.59Office fee 1,063,725.75
803,009.47Other expenses 26,040,092.13
30,269,783.47Total 152,957,426.98
135,469,692.92
46. R&D expenses
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
Item Current Period Last PeriodSalary and social insurance etc. 64,787,655.99
50,278,576.62Amortized intangible assets 58,589,406.22
53,871,905.01Trial fee of R&D 32,578,184.91
31,728,340.10Depreciation 6,808,269.93
7,707,855.52Inspection and authentication fee 6,718,245.74
4,446,068.74Utility bill 4,976,797.24
5,126,916.81Cost of mould 1,384,855.16
2,727,245.15Software usage fee 1,291,273.00
2,690,872.94Other expenses 8,978,566.02
9,311,368.00Total 186,113,254.21
167,889,148.89
47. Financial expenses
Item Current Period Last PeriodInterest expenditure 37,292,383.25 45,498,046.65Less: Interest income 62,433,816.96 74,784,016.69Add: exchange loss 19,162,463.83 9,367,991.95
Procedure charge expenditure 8,002,685.90 10,335,558.03Discount expenditure -7,719,706.12 -3,285,693.99
Total -5,695,990.10 -12,868,114.05
48. Other income
Item Current Period Last PeriodCorporate policy funds 27,000,000.00 28,310,000.00
manufacturing of intelligent air-conditioner
3,132,911.40
Loan discount
3,000,000.00Immediate refund of VAT for software products 2,548,001.17 2,071,200.78Subsidy for characteristic innovation and entrepreneurship carrierproject from Hefei economic & development zone
2,000,000.002019 VAT refund 1,635,266.39Adaptability improvement on new coolants production 1,182,490.86 1,182,490.86Economic Development Zone Industrialization Policy Award andSupplementary Funds in 2019
1,140,400.00Demolition compensation of Changhong Meiling 1,069,128.53 1,234,182.17
Demonstration factory construction for the intelligentHefei 2020 Smart Home Appliances (Home Furnishing)
Technology Award Supplement
1,000,000.00Demolition compensation of Jiangxi Meiling 889,944.30 889,944.30
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
Item Current Period Last Period
RESEARCH AND APPLICATION OF THE VISA (VARIABLE
FREQUENCY VOLUME INTEGRATED INTELLIGENT AIR-
| CONDITIONER) |
704,651.16 704,651.16Hefei Industrial development policy subsidy for first half of 2018 625,000.00 625,000.00The second batch of awards for supporting China Sound Valleyconstruction projects in 2020
544,200.00Faster revenue growth corporate incentives 500,000.00Technical transformation of the Athena project 474,375.00 2,143,125.00Hefei Industrial development policy subsidy for second half of2019
447,137.50 1,341,412.50Industrialization of intelligent white household appliances softwareplatform and typical application research and development
363,636.36 363,636.36
equipment for the technological transformation of industrial strongbase
312,500.00 312,500.00Subsidies for intelligent transformation & upgrading of enterprisesfrom the new industrialization policy in economic developmentzone
302,837.50 302,837.50Centre for external cooperation of the environmental protection 257,877.27Government subsidy for new plant construction - industrializationof cryogenic refrigeration equipment
250,000.00 250,000.00Subsidy for industrial development policy from Hefei for first halfof 2020
217,300.00Subsidy from Zhongshan Finance Bureau (CZ028001 provincialspecial project 2019)
152,823.24 152,823.24Promoting the new
Policy funds for manufacturing a strong province, subsidy forindustry (annual output of 0.6 millionmedium& large volume environmental protection and energy
saving freezer)
152,206.26 152,206.262018 Zhongshan Special fund for industrial development - Specialtopic of technical transformation
132,861.90 132,861.90
industry (annual output of 0.6 millionmedium& large volume environmental protection and energyEquipment subsidy for the industrial base technical renovationfrom Economic and Information Commission
117,500.00 117,500.00Subsidy for employment stable 111,761.05 4,457,036.59Promotion of the energy-saving room air conditioner 105,154.62 105,154.62
Equipment subsidy for the industrial base technical renovationfrom Economic and Information CommissionUpgrade project for the production line of Mianyang MeilingIntelligent Refrigerator
98,749.98 98,749.98Subsidy for purchase of R & D instruments and equipment 91,056.26 73,500.00Subsidy for equipment purchasing for Hefei Tech. Improvementproject in 2017
89,580.00 89,580.002020 Triple One Innovation Project in Anhui Province 54,166.67Special fund for technical improvement 51,904.80 21,442.62Special fund for technical improvement 48,004.50 47,825.00Technical transformation of refrigerator evaporator workshop 44,829.00 44,829.00Robot policy-rewards for purchasing robots 35,062.50
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
Item Current Period Last PeriodTechnical renovation of air conditioner production line 30,601.92 30,601.92Subsidy for the development on production line technical reformfor green-friendly high-quality metal pipe
20,446.32 20,446.32Technical transformation subsidy 15,889.98R290 air-conditioning production IOC subsidy 2,403,000.00Special funds for export credit insurance 1,475,997.00Technology Innovation and Enterprise Development Fund 640,240.372025 Industrial Development Fund 630,000.00Feidong County's policy awards for promoting high-qualityeconomic development
500,000.00Special subsidy funds for epidemic prevention and control 500,000.00Freezer project of Changhong Meiling 367,031.26Other units 6,299,844.49 3,060,318.49
Total57,250,100.93 54,852,125.20
49. Investment income
ItemCurrent Period Last PeriodLong-term equity investment income by equity method-16,047,810.77 209,880.54Investment income obtained from disposal of Trading financialassets
65,827,326.06 5,402,087.72Income from financial products2,754,190.61 1,539,918.00Total52,533,705.90 7,151,886.26
50. Changes in fair value gains
ItemCurrent Period Last PeriodTrading financial assets-11,569,560.58 -4,785,270.15Including :Income of fair value changes from derivative financialinstruments
-18,496,182.50 -4,785,270.15Wealth management product interest accrual6,926,621.92Trading financial liability
1,837,906.29 -4,939,481.97Including :Income of fair value changes from derivative financialinstruments
1,837,906.29 -4,939,481.97Total-9,731,654.29 -9,724,752.12
51. Credit impairment loss
Item
Current Period Last Period
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
Note receivable bad debt loss 546,876.51 -451,763.04Account receivable bad debt loss -15,669,395.22 -22,539,727.97Other account receivable bad debt loss 1,514.82 721,269.82
Total-15,121,003.89 -22,270,221.19
52. Assets impairment loss
Item
Current Period Last PeriodLoss of inventory depreciation and loss of contract performancecost impairment
-43,310,366.42 -26,583,248.58Total
-43,310,366.42 -26,583,248.58
53. Income from assets disposal
Item Current Period Last Period
Amount reckonedinto non-recurring
gains/losses inCurrent Period
Income from non
-current assets disposal -208,978.90
| Income from non |
-178,704.98
-208,978.90
| Including: income classify to assets ready for sale |
-208,978.90
| income not classify as to assets ready for sale |
-178,704.98
-208,978.90
| Including: Income from fixed assets disposal |
-208,978.90
-178,704.98
-208,978.90
| Income from intangible assets disposal |
Total -208,978.90
-178,704.98
-208,978.90
54. Non-operation revenue
Item Current Period Last Period
Amount reckonedinto non-recurring
gains/losses inCurrent PeriodIncome of penalty
854,054.88366,979.53
854,054.88Profit from disposal of non-current assets 117,430.00 117,430.00Other 4,890,835.83 3,078,629.68
4,890,835.83Total 5,862,320.71 3,445,609.21
5,862,320.71
55. Non-operating expenditure
Item Current Period Last Period
Amount reckonedinto non-recurring
gains/losses inCurrent PeriodNon-current asset retirement losses 645,034.44
645,034.44Penalty and late fee 34,829.07 77.03 34,829.07
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
Other 80,729.11 959,477.10 80,729.11
Total 760,592.62
959,554.13 760,592.62
56. Income tax expenses
Item
Current Period Last PeriodCurrent income tax
21,302,275.31 8,498,558.12Deferred Income Tax 15,784,696.07 -11,361,569.54
Total
37,086,971.38 -2,863,011.42
57. Other comprehensive income
Found more in 39. Other comprehensive income in VI
58. Items of cash flow statement
(1) Cash received (paid) from (for) other activities relating to operation/investment/financing
1) Cash received from other activities relating to operation
Item Current Period Last PeriodGovernment subsidy and rewards 40,956,209.27 49,374,979.95Collection of restriction fund 22,688,330.93 4,801,740.89Cash deposit, deposit 9,420,313.94 11,794,014.82Compensations 2,605,385.53 1,589,695.33Rental income 2,178,291.38 2,537,602.16Other 1,793,896.56 4,104,674.84
Total 79,642,427.61 74,202,707.99
2) Cash paid for other activities relating to operation
Item Current Period Last PeriodTransfer to restriction fund 397,877,095.29 23,523,106.48Market expenses 103,773,740.45 103,452,106.47Rental fee 57,814,676.41 56,501,840.38Service supporting fee 31,063,421.76 27,112,533.75Petty cash, deposit, Cash deposit 27,666,562.51 33,991,028.48
Travel expenses, meeting fees and exhibition
fees
23,609,336.42 15,954,778.39Business activities fee 11,888,247.82 7,486,994.76
Travel expenses, meeting fees and exhibitionInspection and certification fee, certification
charge and reviewing fee
11,298,717.35 8,194,323.28
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
Item Current Period Last PeriodTransportation and vehicle expenses 8,370,198.29 6,928,444.73Handling fee 8,259,452.97 9,596,183.72Repair charge 8,129,554.19 5,969,217.79
Technological cooperation costs and consulting
charge
6,098,074.18 4,050,588.10Office expenses 3,172,145.59 3,977,096.29Advertising fee 2,917,266.75 4,535,316.89Labor service fee 2,003,400.19 2,806,291.21Communication fee 1,073,434.97 281,653.09Other expense 57,481,090.49 91,404,105.71
Total 762,496,415.63 405,765,609.52
3) Cash received from other activities relating to investment
Item Current Period Last PeriodInterest income arising from bank savings 69,755,550.75 62,758,263.18Income of forward exchange settlement 67,706,807.74 5,402,087.72Cash deposit 925,112.51 230,611.63
Total 138,387,471.00 68,390,962.53
4) Cash paid for other activities relating to investment
Item Current Period Last PeriodLoses of forward exchange settlement 47,506.93
Total 47,506.93
5) Cash received from other activities relating to financing
Item Current Period Last Period
Technological cooperation costs and consultingBill discounting fundraising
4,675,857.30
| Bill discounting fundraising |
Total 4,675,857.30
6) Cash paid for other activities relating to financing
Item Current Period Last PeriodPayment for B share repurchase 7,032,876.30Lease liability principal and interest 4,097,081.48Financing lease 175,323.88 893,318.70Handling charge of dividend 36,415.52 36,893.14
Total 11,341,697.18 930,211.84
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
(2) Supplementary of the consolidated cash flow statement
Item Current Period Last Period
1. Net profit is adjusted to cash flow of operation
activities:
Net profit
| 1. Net profit is adjusted to cash flow of operation | |
| 55,696,358.16 |
-219,171,870.49Add: provision for depreciation of assets 32,172,406.39
48,853,469.77Depreciation of fixed assets, consumption of oil gas assetsand depreciation of productive biological assets
108,832,291.21
104,594,561.21Depreciation of right-of-use assets 3,296,977.97
Amortization of intangible assets 70,475,493.03
66,064,785.04Amortization of long-term retained expense 208,978.90
178,704.98Loss from disposal of fixed assets, intangible assets andother long term assets (gain is listed with “-”)
527,604.44
Loss from discarding fixed assets as useless (gain is listedwith “-”)
9,731,654.29
9,724,752.12Loss from change of fair value (gain is listed with “-”) -5,978,969.88
-19,917,978.09Financial expense (gain is listed with “-”) -
-7,151,886.26Investment loss (gain is listed with “-”)
| 52,533,705.90 |
| 19,447,731.84 |
-9,942,973.01Decrease of deferred income tax assets (increase is listedwith “-”)
-3,655,216.54
-1,418,596.53
| Increase of deferred income tax liabilities (decrease is |
listed with “-”)
-587,211,166.68
-424,221,441.03Decrease of inventories (increase is listed with “-”) -988,302,199.73
-478,954,328.10Decrease of operational accounts receivable (increase islisted with “-”)
748,795,645.68
543,257,841.98OtherNet cash flow arising from operation activities -588,496,116.82
-388,104,958.41
2. Major investment and financing activities that do not
involve cash receipts:
Conversion of debt into capitalSwitching Company bonds due within one yearfinancing lease of fixed assets
3. Net change in cash and cash equivalents:
Balance at period-end of cash 4,767,551,500.75
4,792,468,168.07Less: Opening balance of cash 6,425,529,815.10
5,385,807,475.51Add: Balance at period-end of cash equivalentsLess: Opening balance of cash equivalentsNet increase in cash and cash equivalents -1,657,978,314.35
-593,339,307.44
(3) No net cash paid for subsidiary obtained in Current Period
(4) No net cash received from subsidiary disposal in Current Period
(5) Cash and cash equivalent
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
Item Current Period Last PeriodCash 4,767,551,500.75 4,792,468,168.07Including: cash in stock 89,912.16 128,714.24Bank deposits available for payment at any time. 4,083,081,613.97 4,552,864,202.70Other monetary fund available for payment at any time 684,379,974.62 239,475,251.13Cash equivalentsIncluding: bond investment due within 3 monthsBalance of cash and cash equivalents at period-end 4,767,551,500.75 4,792,468,168.07Including: using the restricted cash and cash equivalents ofthe parent company or subsidiary of the group
59. Assets with ownership or the right to use restricted
Item Book value at period-end
ReasonsMonetary fund 534,571,433.50 Cash deposit, frozen fundsReceivables financing
note 1440,912,836.95 PledgedInvestment real estate
note 23,549,391.07 MortgageFixed assets
note 2
357,384,947.94 MortgageIntangible assets
note 2285,348,212.33 MortgageTotal 1,621,766,821.79Note 1: The note receivable listed in receivables financing was pledged for: short-term financing from the bank; withpurpose of improving the note utilization, the Company draw up bank acceptance by pledge parts of the outstandingnotes receivable to the bankNote 2: The mortgage of investment real estate, fixed assets, and intangible assets is the mortgage of houses andbuildings and land use rights. For details, please refer to Note VI. 30. Long-term loans.
60. Foreign currency
(1) Foreign currency
Item
Ending foreign currency
balance
Exchange rate
Ending RMB converted
| balance | balance |
Monetary fund 205,655,918.43Including: USD 27,201,221.23 6.4601 175,722,609.27Euro 1,880,390.26 7.6862 14,453,055.62AUD 1,420,183.66 4.8528 6,891,867.27GBP 117,444.91 8.9410 1,050,074.94Pakistan Rupi 58,078,577.55 0.0408 2,369,605.96IDR 6,672,183,097.00 0.000446 2,975,793.66
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
Item
Ending foreign currency
balance
Exchange rate
Ending RMB converted
| balance | balance |
HKD 3,297.42 0.8321 2,743.78PHP 16,492,228.42 0.1328 2,190,167.93Account receivable 921,010,335.70Including: USD 107,742,004.39 6.4601 696,024,122.56
Euro 15,528,162.84 7.6862 119,352,565.22AUD 8,502,022.00 4.8528 41,258,612.36GBP 338,211.00 8.9410 3,023,944.55Pakistan Rupi 1,101,410,856.42 0.0408 44,937,562.94IDR 35,298,970,481.31 0.000446 15,743,340.83PHP 5,046,590.70 0.1328 670,187.24Other account receivable 9,209,447.07Including: USD 1,265,765.52 6.4601 8,176,971.84
Pakistan Rupi 13,544,917.00 0.0408 552,632.61PHP 225,500.00 0.1328 29,946.40HKD 540,675.66 0.8321 449,896.22Account payable 26,970,597.19Including: USD 1,316,275.31 6.4601 8,503,270.13
Euro 13,419.32 7.6862 103,143.58Pakistan Rupi 255,521,203.84 0.0408 10,425,265.12PHP 59,781,011.75 0.1328 7,938,918.36Other account payable 14,417,720.72Including: USD 9,166.51 6.4601 59,216.57
HKD 17,362.53 0.8321 14,447.36Pakistan Rupi 348,440,514.34 0.0408 14,216,372.99PHP 961,474.36 0.1328 127,683.80Short-term loans 105,061,500.00Including: USD 15,000,000.00 6.4601 96,901,500.00Pakistan Rupi 200,000,000.00 0.0408 8,160,000.00
(2) Foreign operational entity
The foreign operational entity of the Company was Changhong Ruba Trading Company (Private) Limited, mainlyoperates in Lahore, Pakistan; Recording currency is Pakistan Rupi. CHANGHONG MEILING ELECTRICINDONESIA, PT, mainly operates in Jakarta; recording currency is IDR. CH-Meiling International (Philippines) Inc,
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
mainly operates in Philippines; Recording currency is PHP.
61. Government subsidy
Item Amount Item
Amount reckoned
into currentgain/lossEnterprise policy funds 27,000,000.00
Other
| income |
27,000,000.00Loan discount 3,000,000.00
Otherincome
3,000,000.002020 Triple One Innovation Project in Anhui Province 2,600,000.00
Deferredincome
54,166.67Immediate refund of VAT for software products 2,548,001.17
Other
| income |
2,548,001.172019 VAT refund 1,635,266.39
Other
| income |
1,635,266.39
Award and Supplementary Funds in 2019
1,140,400.00
Otherincome
1,140,400.00Hefei 2020 Smart Home Appliances (Home Furnishing)Technology Award Supplement
1,000,000.00
Otherincome
1,000,000.00
Economic Development Zone Industrialization PolicyCentre for external cooperation of the environmental
protection
846,100.00
| Centre for external cooperation of the environmental |
Deferredincome
The second batch of awards for supporting China SoundValley construction projects in 2020
544,200.00
Otherincome
544,200.00Faster revenue growth corporate incentives 500,000.00
Otherincome
500,000.00Other units 6,315,427.16
Other
| income |
6,315,427.16Total 47,129,394.72
43,737,461.39
VII. Changes of consolidation rage
1. Enterprise combined under the different control: nil
2. Enterprise combined under the same control: nil
3. Reversed takeover: nil
4. Disposal of subsidiary: nil
5. Subsidiary liquidated
6. Subsidiary newly established:
Name of companyNew merger
Shareholding
Net asset at Net profit in
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
reasons
| reasons | ratio | period-end | Current Period | |
| Anhui Lingan Medical Equipment Co., |
Ltd
establishment
63.2683% 9,997,480.00 -2,520.00
7. Subsidiary merger by absorption: Nil
VIII. Equity in other entity
1. Equity in subsidiary
(1) Composition of the enterprise group
Subsidiary
Main officeplace
Registrationplace
Business nature
Shareholding ratio
Investment
（
%)
Acquire byDirectly IndirectlyZhongke Meiling
（Cryogenic Technology
Co., Ltd.1)
Hefei Hefei
Manufacturing and
sales
63.2683
Investmentestablishment
| Cryogenic Technology |
| Sichuan Hongmei Intelligent Technology |
Co., Ltd.2)
Mianyang Mianyang
Softwaredevelopment
InvestmentestablishmentMianyang Meiling
3)
Mianyang Mianyang
Manufacturing and
sales
95 5
Investmentestablishment
| Refrigeration Co., Ltd. |
| Jiangxi Meiling Electric Appliance Co., |
Ltd. 4)
Jingdezhen Jingdezhen
Manufacturing andsales
98.75 1.25
InvestmentestablishmentHefei Meiling Wulian
Ltd5）
Hefei Hefei
Softwaredevelopment
Investmentestablishment
| Technology Co., |
| Hefei Meiling Electric Appliances |
Marketing Co., Ltd6)
Hefei Hefei Sales 99.82 0.18
Investmentestablishment
Marketing Co., Ltd7)
Jinan Jinan Sales 93.4
| Jinan Xiangyou Electric Appliances | Investment |
establishment
Ltd8)
Wuhan Wuhan Sales 92
Investmentestablishment
| Wuhan Meizirong Electrical Marketing Co., |
| Zhengzhou Meiling Electric Appliances |
Marketing Co., Ltd9)
Zhengzho
u
Sales 100
Investmentestablishment
| Zhengzhou | |
| Taiyuan Meiling Electric Appliances |
Marketing Co., Ltd.10)
Taiyuan Taiyuan Sales 100
Investmentestablishment
Marketing Co., Ltd11)
Guangzho
u
Guangzhou
Sales 98
Investmentestablishment
| Guangzhou Meiling Electric Appliances |
| Tianjin Meiling Electric Appliances |
Marketing Co., Ltd.12)
Tianjin Tianjin Sales 100
establishment
| Investment | ||
| Hefei Meiling Nonferrous Metal Products |
Co., Ltd.13)
Hefei Hefei
Manufacturing andsales
Enterprisecombined notunder the same
control
Co., Ltd.14）
| Changhong Meiling Ridian Technology | Zhongshan | Zhongshan |
Manufacturing andsales
99.0361
combinedunder the samecontrolCHANGHONGMEILINGELECTRICIND
| Enterprise | |||
| Jakapta | Jakapta |
Sales 100Investment
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
Subsidiary
Main office
place
Registration
place
Business nature
Shareholding ratio
（
%)
Acquire byDirectly Indirectly
（ONESIA,PT 15
）
| establishment |
ChanghongRubaTradingCompa（Private）Limited 16)
Pakistan Pakistan
Sales 60
InvestmentestablishmentSichuan Changhong Air-
Ltd. 17)
Mianyang Mianyang
Manufacturing and
sales
Enterprisecombinedunder the same
controlZhongshan
| conditioner Co., |
| Changhong Electric Co., |
Ltd.18)
| Zhongshan | Zhongshan |
Manufacturing and
sales
90 10
Enterprisecombinedunder the same
controlHefei Meiling Group Holdings Limited19) Hefei Hefei
Manufacturing andsales
Enterprisecombined notunder the same
control
(Hefei) Co., Ltd.20)
Hefei Hefei
Manufacturing and
sales
| Meiling Equator Household Appliance | Enterprise |
combined notunder the samecontrolHefei Equator Appliance Co., Ltd.21) Hefei Hefei
Manufacturing and
sales
combined notunder the samecontrol
| Enterprise | ||
| Hongyuan Ground Energy Heat Pump Tech. |
Co., Ltd22)
Mianyang Mianyang
Manufacturing and
sales
Investmentestablishment
(Zhongshan) Co., Ltd. 23)
| Ground Energy Heat Pump Tech. | Zhongshan | Zhongshan |
Manufacturing and
sales
Investmentestablishment
Ltd.24）
Hefei Hefei
Manufacturing andsales
Investmentestablishment
| Meiling CANDY Washing Machine Co., |
| Guangzhou Changhong Trading Co., |
Ltd25）
Guangzhou Guangzhou
Sales 100
InvestmentestablishmentHebei Hongmao
Technology Co., Ltd26）
Handan Handan
Manufacturing andsales
99.0361
InvestmentestablishmentAnhui Tuoxing Technology Co., Ltd.27）Hefei Hefei
Manufacturing and
sales
63.2683
Investmentestablishment
Household ApplianceCH-Meiling.International (Philippines)
Inc.28）
Philippines
| CH-Meiling.International (Philippines) | Philippines |
Sales 100
Investmentestablishment
Co., Ltd. 29）
Hefei Hefei Sales 70
Investmentestablishment
| Hefei Changhong Meiling Life Appliances |
| Anhui Ling’an Medical Equipment Co., Ltd |
30）
Lu'an Lu'an
Manufacturing andsales
63.2683
InvestmentestablishmentNote:
1) Zhongke Meiling Cryogenic Technology Co., Ltd.(hereinafter referred to as Zhongke Meiling), the predecessor of
which was Zhongke Meiling Cryogenic Technology Limited Liability Company, was established on 29 October 2002
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
by joint contribution from the Company and Technical Institute of Physics and Chemistry, CAS (“TIPC”), withregistered capital of RMB60 million upon the establishment, among which, the Company made capital contribution ofRMB42 million (including the assets in specie at the consideration of RMB35,573,719.70 as evaluated by BeijingZhongzheng Appraisal Co., Ltd. with issuance of the Appraisal Report (ZZPBZ(2002)No.029) and cash contribution ofRMB6,426,280.30) accounting for 70% of the aforesaid registered capital, and TIPC made capital contribution ofRMB18 million with intangible assets of such value (namely the single compressor mixture industrial low temperaturerefrigeration technology) as evaluated by Jingzhongzi Assets Appraisal Co., Ltd. with issuance of the Appraisal Report(ZZPBZ(2002)No.225) accounting for 30% of the aforesaid registered capital. The paid-in of the above registeredcapital has been verified by Huazheng Accounting Firm by issuance of the Assets Verification Report (HZYZ (2002)No. B157) dated 16 October 2002.In October 2014, according to the relevant provision under the Management Rules on Application of State OwnedAssets by Central Business Organs, TIPC transferred the 30% equity interests held by it in Zhongke Meiling CryogenicTechnology Company Limited to its wholly-owned subsidiary Zhongke Xianxing (Beijing) Assets Management Co.,Ltd (hereinafter referred to as Zhongke Xianxing) which would perform management over the operating assets ofTIPC. Upon consideration and approval at the 37
th
session of the 7
thBoard of Directors of Hefei Meiling Co., Ltd, it isagreed to waive the pre-emptive right.On 10 August 2015, all the founders signed the Founder Agreement of Zhongke Meiling Cryogenic TechnologyCompany Limited, pursuant to which, they decided to change the firm type of Zhongke Meiling Cryogenic TechnologyCompany Limited to a joint stock company. Based on the net assets of RMB96, 431,978.25 as audited by XinyongZhonghe CPA as of 30 June 2015, an aggregate of 65,000,000 shares have been converted at the proportion of 1:0.67,which are to be held by the original shareholders according to their respective entitlement. In case that the net assetsexceed registered capital, the balance shall be recorded in capital reserve. On 28 August 2015, Xinyong Zhonghe CPAreviewed the registered capital and paid-in thereof in respect of the stock reform, and issued Assets Verification Report(XYZH/2015CDA40161). The Company registered industrial and commercial information on 11 September 2015.On November 25, 2016, the first Extraordinary Shareholders' General Meeting of Zhongke Meiling CryogenicTechnology Co., Ltd. in 2016 considered and approved the Proposal on the Issuance Plan of the Company; ZhongkeMeiling Company issued 3,150,000 shares to specific investors by the non-public offering of shares at 1.63 Yuan pershare. The current capital increase was verified by the No.［XYZH/2016CDA40294］capital verification report issuedby ShineWing CPA (special general partnership). After the completion of the issuance, the share capital of ZhongkeMeiling Company increased to 68,150,000 shares and the Company's shareholding ratio was 66.76%.On 15 September 2017, the Proposal of the First Stock Placement of Zhongke Meiling Cryogenic Technology Co., Ltdfor year of 2017 was deliberated and approved by 4
thsession extraordinary of shareholders general meeting of 2017.Zhongke Meiling offering 490,300 shares to specific investors by way of privately placement, which has 1.72 Yuan pershare in amount. The capital increasement has been verified by the No. ［XYZH/2017CDA40324］capital verificationreport issued by ShineWing CPA (special general partnership). After the completion of shares placement, stock of theCompany increased to 68,640,300 shares and 66.87% held by the Company.On September 9, 2019, the 10
th
Meeting of the Second Board of Directors and the Fourth Extraordinary Shareholders’Meeting reviewed and approved the Proposal on the First Stock Issuance Plan of Zhongke Meiling CryogenicTechnology Co., Ltd. in 2019 (Revised Version), the number of shares to be issued this time does not exceed 3,907,900shares (including 3,907,900 shares), the issue price is not less than 2.16 yuan per share, and the raised funds are
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
expected to not exceed 8,441,064.00 yuan (including 8,441,064.00 yuan). After the completion of the additional issue,the company’s share capital increased to 72,548,200 shares, which was verified by [No. XYZH/2020CDA30002]“Capital Verification Report” issued by Shine Wing Certified Public Accountants (LLP), and the Company’sshareholding ratio was 63.2683%.
2) Sichuan Hongmei Intelligent Technology Co., Ltd. (hereinafter referred to as Hongmei Intelligent) was established
on Jan. 24, 2014. It is a limited company jointly invested by the Company and Mianyang Meiling Refrigeration Co.,Ltd., being approved by the Industrial and Commerce Bureau of Peicheng District, Mianyang City. The company owesregistered capital of RMB 5 million, including RMB 4.95 million contributed by Changhong Meiling Company in cash,accounted for 99% of the registered capital; Mianyang Meiling Refrigeration Co., Ltd. contributed RMB 50000 in cashwith 1% of the register capital occupied. The above mentioned register capital have been verified by verification reportof Chuanjinlai Yanzi No. [2014] B039 issued by Sichuan Jinlai Accounting Firm Co., Ltd. In July 2016, the shares ofHongmei Intelligent, held by the Company has transferred to Sichuan Changhong AC Co., Ltd., after transferred,Changhong AC has 99% equity of Hongmei Intelligent, the Company has no shares of Hongmei Intelligent directly.
3) Mianyang Meiling Refrigeration Co., Ltd. (hereinafter referred to as Mianyang Meiling), a limited liability company
jointly set up by the Company and China-tech Meiling Company, was founded on Mar. 6, 2009. Its registered capitaland paid-in capital were RMB 50 million upon establishment, of which, the Company invested RMB 45 million,accounting for 90% of the registered capital; Zhongke Meiling Company invested RMB 5 million, accounting for 10%of the registered capital. The capital receipt was verified by the verification report [CXKY (2009) No. 008] of SichuanXingrui Certified Public Accountants. On 19 January 2011, the Company increase RMB 50 million in capital ofMianyang Meiling, of which RMB 95 million invested by the Company, a 95% of total register capital while RMB 5million invested by Zhongke Meiling, a 5% of total capital occupied. The paid-in capital has been verified by CapitalVerification Report［XYZH/2010CDA6040］from Chengdu Branch of Shinewing CPA CO., Ltd. In 2011, ZhongkeMeiling entered into “Equity Transfer Agreement” with Jiangxi Meiling Refrigeration Co., Ltd. 5 percent equity ofMianyang Meiling held by Zhongke Meiling was transferred to Jiangxi Meiling Refrigerator. In September 2013,Jiangxi Meiling Refrigeration was combined by Jiangxi Meiling Electric Appliance Co., Ld, than 5 percent equity wastransfer to Jiangxi Meiling Electric Appliance.
4) Jiangxi Meiling Electric Appliance Co., Ltd. (hereinafter referred to as Jiangxi Meiling Electric Appliance) was a
limited liability company jointly established by the Company and Mianyang Meiling on 23 May 2011. Register capitalof the company totally as RMB 50 million, RMB 49.375 million invested by the Company, 98.75% in total registercapital while RMB 0.625 million invested by Mianyang Meiling , a 1.25% in total register capital occupied. The initialinvestment RMB 10.50 million was received dated 13 May 2011 with RMB 10 million from the Company and RMB
0.5 million from Mianyang Meiling. Rest of the capital shall be invested fully within 2 years after the joint ventures
established according to capital requirement. The initial investment capital were verified by the Capital VerificationReport [JXKYZi (2011) No. 090] issued from Jingdezhen Xingci CPA Co., Ltd. Second capital RMB 39.5 million wasfully funded on 28 July 2011, the Company contributed RMB 39.375 million while Mianyang Meiling Companyinvested RMB 125,000, the contributions have been verified by the capital verification report [Jing Xing Kuai Yan Zi(2011) No.: 134] issued from JDZ Xingci CPA Co., Ltd.
5) Hefei Meiling Wulian Technology Co., Ltd. (hereinafter referred to as Wulian Technology) was established dated 21
January 2019 with registered capital of RMB 10 million, and it is the subsidiary of the Company with fully-ownedestablishment.As of December 31, 2020, paid in capital is 6 million yuan
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
6) Hefei Meiling Electric Appliances Marketing Co., Ltd (hereinafter referred to as Meiling Marketing) is the limited
company jointly invested by the Company and Mianyang Meiling Company on 21 Oct. 2009. Registered capital andpaid-up capital were RMB 10 million, including RMB 9.9 million invested by the Company, a 99% of the registeredcapital; Mianyang Meiling Company contributed RMB 0.1 million, a 1% of the registered capital. The abovementioned paid-up register capital have been verified by verification report of [Wan An Lian Xin Da Yan Zi (2009) No.074] issued by Anhui An Lian Xin Da Accounting Firm Co., Ltd. On 25 Nov. 2010, the Company increased capitalRMB 45 million, registered capital amounting to RMB 55 million, including RMB 54.9 million contributed by theCompany, a 99.82% of the registered capital, while Mianyang Meiling invested RMB 0.1 million, a 0.18% of theregistered capital. The increased capital has been verified by verification report of [Wan Hua Shen Zheng Da Kuai YanZi (2010) No. 1514] issued by Anhui Hua Shen Zhengda CPA Co., Ltd.
7) Jinan Xiangyou Electric Appliances Marketing Co., Ltd (hereinafter referred to as Jinan Xiangyou) was established
dated 3 June 2011 with registered capital of RMB 3 million; Meiling Marketing invested RMB 1.08 million, accountedfor 36% of the registered capital; after Meiling Marketing acquired 55.4% equity interests from the minorityshareholders in 2015, Meiling Marketing totally holds 91.4% equity of the Jinan Xiangyou, In 2019, minorityshareholders step out, shares of Jinan Meiling hold by Meiling Marketing changed to 93.4%.
8) Wuhan Meizirong Electrical Marketing Co., Ltd (hereinafter referred to as Wuhan Meizirong) was established dated
10 January 2011 with registered capital of RMB 5 million; Meiling Marketing invested RMB 4.60 million, accounted for92% of the registered capital.
9) Zhengzhou Meiling Electric Appliances Marketing Co., Ltd (hereinafter referred to as Zhengzhou Meiling) was
established dated 17 January 2011 with registered capital of RMB 3 million; Meiling Marketing invested RMB 1.08million, accounted for 36% of the registered capital. In 2013, Meiling Marketing purchased 10% equity from minority;Meiling Marketing signed equity transfer agreement with the minority shareholders in April 2015, to acquire as thetransferee the 39% equity interests of Zhengzhou Meiling held by minority shareholders, Meiling Marketing acquired10% equity interests from the minority shareholders in February 2016; and after acquiring 5% equity from minority in2017, Meiling Marketing totally holds 100% equity of Zhengzhou Meiling.10) Taiyuan Meiling Electric Appliances Marketing Co., Ltd. (hereinafter referred to as Taiyuan Meiling) wasestablished dated 18 January 2011 with registered capital of RMB 4 million; Meiling Marketing invested RMB 1.59million, accounted for 39.75% of the registered capital; after Meiling Marketing purchased 45.5% equity from minorityin 2013, after purchased 14.75% equity from minority in 2016, Meiling Marketing totally holds 100% equity of theTaiyuan Meiling.
11) Guangzhou Meiling Electric Appliances Marketing Co., Ltd. (hereinafter referred to as Guangzhou Meiling) was
established dated 13 May 2011 with registered capital of 5 million Yuan; Meiling Marketing invested 4.3 million Yuan,accounted for 86% of the registered capital; after Meiling Marketing acquired 12% equity interests from the minorityshareholders in 2014, Meiling Marketing totally held the 98% equity interests of Guangzhou Meiling.
12) Tianjin Meiling Electric Appliances Marketing Co., Ltd. (hereinafter referred to as Tianjin Meiling) was established
dated 2 March 2011 with registered capital of 3 million Yuan; Meiling Marketing invested 2.565 million Yuan, accountedfor 85.5% of the registered capital; In 2015, Meiling Marketing and Jiangxi Meiling Appliances entered into equitytransfer agreements with minority shareholders respectively, to acquire as the transfers the 14.1% and 0.4% equityinterests of Tianjin Meiling held by minority shareholders. Upon completion of equity transfer in December 2015,
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
Meiling Marketing totally held the entire equity interests of Tianjin Meiling.
13) Hefei Meiling Nonferrous Metal Products Co., Ltd. (hereinafter referred to as Nonferrous Metal) was the Sino-foreign
joint venture jointly set up by original Meiling Group, Hefei Meiling Copper Co., Ltd. And Singapore Kim Shin Development Co.,Ltd., which have been originally approved by the [WJMWFZZ (1996) No.349] of Foreign Trade and EconomicCommittee of Anhui Province. Its registered capital was US$ 2.92 million upon establishment, of which, originalMeiling Group invested US$ 1.46 million (monetary capital), accounting 50% of the registered capital, Hefei MeilingCopper Co., Ltd invested US$ 0.584 million (monetary capital of RMB 0.18 million and real assets of US$ 0.404 million), accounting20% of registered capital while Singapore Kim Shin Development Co., Ltd invested US$ 0.876 million (monetary capital),accounting 30% of the registered capital. The above mentioned investment verified by the verification report of [HSWZ(1995) No. 0737], [HSWZ (1996) No. 328] and [HSWZ (1998) No. 088] from Anhui CPAs Co., Ltd. In July 2008,approved by [HWS (2008) No.53] from Foreign Trade Economic Cooperation Bureau of Hefei City, 30% equity and20% equity held by Singapore Kim Shin Development Co., Ltd and Hefei Meiling Copper Co., Ltd respectively transferred tooriginal Meiling Group Totally. The Company’s register capital came into RMB 24,286,808.00 after transference, andwas not the joint-venture any more.
14) Changhong Meiling Ridian Technology Co., Ltd. (hereinafter referred to as Ridian Technology) is a limited liability
company invested and established by Sichuan Changhong Electric Co., Ltd. (hereinafter referred to as SichuanChanghong) and Sichuan Changhong Motor Transport Co., Ltd. (hereinafter referred to as Changhong Motor TransportCompany) on May 25, 2016. The registered capital and paid-in capital are RMB 40 million Yuan, of which SichuanChanghong has invested 32 million Yuan by monetary capital, accounting for 80% of the registered capital; ChanghongMotor Transport Company has invested 8 million Yuan, accounting for 20% of the registered capital. The officialreceipts of registered capital have been verified by original Sichuan Junhe Accounting Firm [No. JHYZ (2006)3027].Ridian Technology increased registered capital of 43 million Yuan on January 4, 2007, changing from 40 millionYuan to 83 million Yuan , for the newly increased 43 million Yuan , Sichuan Changhong invested 1.8 million Yuan ,Guangdong Xiongfeng Electric Co., Ltd. invested 40 million Yuan , and Kou Huameng and other 9 natural personshareholders invested 1.2 million Yuan , at the same time, the shareholders' meeting considered and agreed to transferthe investment of 8 million Yuan of Changhong Motor Transport Company to Sichuan Changhong Venture InvestmentCo., Ltd, the structure of the registered capital after changes was that Sichuan Changhong invested 33.8 million Yuan ,accounting for 40.72%；Guangdong Xiongfeng Electric Co., Ltd. invested 40 million Yuan , accounting for 48.19%;Sichuan Changhong Venture Investment Co., Ltd Invested 8 million Yuan , accounting for 9.64%; Kou Huameng andother 9 natural person shareholders invested 1.2 million Yuan , accounting for 1.45%. The change of registered capitalwas verified by Zhongshan Promise Accounting Firm [No. ZCHZ (2007)501010].On February 18, 2009, seven natural person shareholders transferred total 0.76% stock rights to Hu Zhiheng, after thetransfer, the registered capital of Changhong Ridian was still 83 million Yuan , the structure of registered capital afterchanges was that Sichuan Changhong invested 33.8 million Yuan , accounting for 40.72%; Guangdong XiongfengElectric Co., Ltd. invested 40 million Yuan , accounting for 48.19%; Sichuan Changhong Venture Investment Co., Ltdinvested 8 million Yuan , accounting for 9.64%; Hu Zhiheng and other two natural person shareholders invested 1.2million Yuan , accounting for 1.45%.On October 9, 2014, Changhong Ridian held the shareholders meeting which considered and agreed Kou Huameng totransfer its stock rights of total 250,000 Yuan which accounts for 0.301% of the Ridian Technology’s registered capitalto Sichuan Changhong Venture Investment Co., Ltd at the cost of 317,802 Yuan. The other shareholders of the Ridian
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
Technology waived the right of pre-emption. On December 11, 2014, Ridian Technology held the shareholders meetingwhich considered and agreed Guangdong Xiongfeng Electric Co., Ltd. to transfer its stock rights of total 40 millionYuan which accounts for 48.19 % of the company's registered capital to Sichuan Changhong Electric Co., Ltd. at thecost of 43,977,300 Yuan. The other shareholders of the Ridian Technology waived the right of pre-emption. Thestructure of registered capital after changes was that Sichuan Changhong invested 73.8 million Yuan, accounting for
88.92%; Sichuan Changhong Venture Investment Co., Ltd Invested 8.25 million Yuan, accounting for 9.94%; Hu
Zhiheng and another natural person shareholder invested 950,000 Yuan , accounting for 1.14%.On 4 January 2016, Sichuan Changhong and Sichuan Changhong Venture Investment Co., Ltd. transferred total
98.855% equity of the Ridian Technology to the Company. After the transfer, the Company directly holds 98.855%
stock rights of Ridian Technology.On 7 April 2020, Ridian Technology convened the shareholders’ meeting, and agreed the Wu Changyuan to transferredtotal 0.18% equity of the Ridian Technology to the Company. After the transfer, the Company directly holds 99.0361%stock rights of Ridian Technology.
15) CHANGHONG MEILING ELECTRIC INDONESIA, PT.(hereinafter referred to as Indonesia Changhong) is a
subsidiary established in Indonesia and jointly invested by Zhongshan Changhong and Sichuan Changhong in 2016, thecompany’s registered capital is 6 million US dollars, of which Zhongshan Changhong subscribed and paid 5.88 millionUS dollars in cash, accounting for 98% of the registered capital, Changhong Air Conditioning subscribed and paid120,000 US dollars in cash, accounting for 2% of the registered capital. On 4 July 2017, rests of the 2.94 million USdollars are subscribed by Zhongshan Changhong in line with the agreement.
16) Changhong Ruba Trading Company (Private) Limited (hereinafter referred to as Changhong Ruba) was a joint
venture established by Zhongshan Changhong Appliances Company Limited and RUBA GENERAL TRADING FZECompany (“RUBA”) on 5 August 2011 with the approval from Guangdong Development and Reform Commission byissuance of the Approval Relating to Joint Construction of a Manufacturing and Selling Platform Project in Pakistan byZhongshan Changhong Appliances Company Limited (YFGWZ(2011)958). The resolution of the second extraordinaryshareholders' meeting of Zhongshan Changhong in 2016 passed the "Proposal on the Company's Capital Increase toChanghong Ruba Trading Company (Private) Limited", and agreed that the company and UAE RUBA Company jointlyincrease capital to Changhong Ruba Trading Company(Private) Limited which was invested by both sides in Pakistanat an earlier stage, Zhongshan Changhong invested 3.84 million US dollars in this capital increase, and UAE RUBACompany invested 2.56 million US dollars, the shares held by both sides remained unchanged. After the capitalincrease, the company’s registered capital became 12.4 million US dollars, of which Zhongshan Changhong HomeAppliances Company Limited invested 7.44 million US dollars in cash, shareholding ratio was 60%, UAE RUBACompany invested 4.96 million US dollars in cash, and shareholding ratio was 40%.
17) Sichuan Changhong Air Conditioning Co., Ltd. (hereinafter referred to as Changhong Air Conditioner), a limited
liability company jointly set up by Sichuan Changhong and Changhong Chuangtou, was founded on November 28,2008. Its registered capital was RMB 200 million upon establishment, of which, Sichuan Changhong invested RMB298 million (RMB 210,088,900 invested by monetary capital while RMB 87,911,100 invested by real material),equivalent to RMB 198 million shares, accounting for 99% of the registered capital; and Changhong Chuangtouinvested RMB 3 million, accounting for 1% of the registered capital with equivalent of RMB 2 million shares. Theregistered capital receipt was verified by the verification report [CGYYZ (2008) No. 177] of Sichuan GuangyuanCertified Public Accountants Co., Ltd. and [HLTHYZ (2008) No. 12-006] of Sichuan Henglitai Certified Public
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
Accountants Co., Ltd. In December 2009, the Company obtained 100% equity of Changhong Air-conditioner byconsolidated under the same control. In 2017, the Company increased capital of 650 million Yuan to Changhong AirConditioner, after capital increased, registered capital of Sichuan Changhong comes to 850 million Yuan from 200million Yuan, shareholding still counted as 100%.
18) Zhongshan Changhong Electric Co., LTD (hereinafter referred to as Zhongshan Changhong), was the original
Guangdong Changhong Electric Co., Ltd., and is a limited liability company jointly set up by Sichuan Changhong andChina Minmetals on May 22, 2001. Its registered capital was RMB 80 million upon establishment, of which, SichuanChanghong invested RMB 72 million, including RMB 69.3 million biding for the estate/ non-estate from originalZhongshan Sanrong Air-conditioner Co., Ltd. And its patent use-right of RMB2.7 million, accounting for 90% of theregistered capital; Chine Minmetals invested RMB 8 million in monetary capital accounting 10% of the registeredcapital. The Company changed its name originally from Guangdong Changhong Electric Co., Ltd in July 2003. InDecember 2009, the Company obtained 90% equity of Zhongshan Changhong by consolidated under same control.10% equity held by China Minmetals has been transferred by Changhong Air-conditioner on April 11, 2010. On 25May 2014, the Company increased RMB 36 million to Zhongshan Changhong, and Changhong AC increased RMB 4million. In 2016, according to the overseas development strategy of the Company and the development and operationneeds of the subsidiaries, the Company and the wholly-owned subsidiary Changhong Air Conditioning have increasedcapital of RMB 64 million Yuan to Zhongshan Changhong according to the existing shareholding ratio, among whichthe capital increase of the Company was RMB 57.6 million Yuan, and the capital increase of Changhong AirConditioning was RMB 6.4 million Yuan. After the completion of this capital increase, the registered capital ZhongshanChanghong shall increase to RMB 184 million Yuan, the shareholding ratio of the company and Changhong AirConditioning remained unchanged and was still 90% and 10%, of which the Company invested 165.6 million Yuan,accounting for 90% of the registered capital, Changhong Air Conditioning invested 18.4 million Yuan, accounting for10% of the registered capital.In March 2020, in accordance with the Company’s overseas development strategy and theoperation and development needs of its subsidiaries, the Company and its wholly-owned subsidiary Changhong AirConditioning increasedcapital of RMB 150 millionto Zhongshan Changhong according to the existing shareholdingratios, of which the Companyincreasedcapital of RMB 135 million, Changhong Air-Conditioning increased capitalofRMB 15 million. After the completion of capital increase, the registered capital of Zhongshan Changhong hasincreased to RMB 334 million. The Company’s and Changhong’s shareholding ratios in Zhongshan Changhong remainunchanged at 90% and 10%, of which the Company funded RMB 300.6 million, accounting for 90% of the registeredcapital, while Changhong Air Conditioning fundedRMB 33.4 million, accounting for 10% of the registered capital.
19) Hefei Meiling Group Holdings Limited (hereinafter referred to as Meiling Group), was the state-owned company
originally approved by People’s Government of Hefei Province and established authorized by SASAC of Hefei City. On July 14,2008, 100% state-owned equity of Meiling Group has freely transferred to Xingtai Holding by Hefei SASAC.Agreement by the approval of < State-owned property agreement transfer from Meiling Group> [ HGZCQ (2010)No.34] of Hefei SASAC on April 9, 2010, 100% state-owned property of Meiling Group after partial assets andliabilities separated transferred to the Company from Xingtai Holding as amount of RMB 113.2 million. The re-registration of industrial and commercial procedure for Meiling Group after separated partial assets liability hasfinished on July 28, 2010. The new Meiling Group has register capital of RMB 80 million, and has been verified by the[AD (2010) YZD No. 016] from Anhui Auding CPAs Co., Ltd.20) Meiling EquatorHousehold Appliance (Hefei) Co., Ltd.( hereinafter referred to as EquatorHousehold Appliance) was theSino-foreign joint venture jointly set up by original Meiling Group and EQUATOR INVESTMENTS (USA) INC.( EQUATOR
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
for short), which have been approved by the [SWZWFZZ(2004) No.0103] of Approval Certificate of ForeignEnterprise from People’s Government of Anhui Province. Its registered capital was US$ 3 million upon establishment,of which, Sino company invested US$ 2.25 million in machinery equipment, accounting 75% of the registered capitalwhile foreign company invested US$ 0.5 million in monetary capital and US$ 0.25 million in intangible assets,amounting to US$0.75 million, accounting 25% of the registered capital. The above mentioned investment verified bythe verification report of [WYAYZ (2004) No. 135] from Anhui Yongan CPAs Co., Ltd. In July 2007, approved by[HWJ (2007) No.136] from Foreign Trade Economic Cooperation Bureau of Hefei City, 25% equity held byEQUATOR transferred to Anhui Meiling Electric Co., Ltd. Totally. The Company’s register capital came into RMB24,793,200 after transference, and was not the joint-venture any more. 25% equity owned by Anhui Meiling ElectricCo., Ltd has been transferred totally to original Meiling Group in July 2009.
21) Hefei Equator Appliance Co., Ltd.(hereinafter referred to as Equator Appliance) was jointly set up by original Meiling
Group and Yingkaite Appliance on September 26, 2007. Its register capital was RMB 12 million, among which, originalMeiling Group invested 8,670,600 Yuan in monetary capital, accounting 72.255% in registered capital; EquatorAppliance invested 3,329,400 Yuan in the assessment value of intangible assets (land-use right), accounting 27.745% oftotal registered capital. The investment being verified by [WYAZ (2004) No. 135] from Anhui Yongan CPAs Co., Ltd.
22) Hongyuan Ground Energy Heat Pump Technology Co., Ltd. (hereinafter referred to as Hongyuan Ground Energy)
was established on 28 August 2015, it is a limited liability company authorized by Administration for Industry andCommerce of Peicheng District, Mianyang, Sichuan, contributed by Sichuan Changhong Air Conditioner Co., Ltd(hereinafter referred to as Changhong Air Conditioner) and Hengyouyuan Technology Development Group Co., Ltd.together. Registered capital amounted as 50 million Yuan, including 25.5 million Yuan contributed by Changhong AirConditioner in cash, a 51% in total registered capital; Hengyouyuan Technology Development Group Co., Ltd. invested
24.5 million Yuan in cash, a 49% in registered capital.
23) Hongyuan Ground Energy Heat Pump Tech. (Zhongshan) Co., Ltd.(hereinafter referred to as Hongyuan
Zhongshan) was established and invested on 18 July 2017 with registered capital of 15 million Yuan, The HongyuanGround Energy Heat Pump Tech. Co., Ltd contributed 1.5 million Yuan with own funds and takes 100% in theregistered capital.In 2018, the shareholdes of the Hongyuan Zhongshan decided to increase capital of 30 million Yuan,and contributed by the shareholder Hongyuan Ground Energy; thus registered capital of Hongyuan Zhongshan up to 45million Yuan
24) Meiling Candy Washing Machine Co., Ltd. (hereinafter referred to as Meiling Candy) was established and
registered on 27 April 2017, which was contributed by the Company and Candy Hoover Group S.r.l. together.Registered capital counted as 150 million Yuan, including 90 million Yuan invested by the Company, a 60% inregistered capital.
25) Guangzhou Changhong Trading Co., Ltd. (hereinafter referred to as Changhong Trading) was established on 6 Jan.
2017, the wholly-owned subsidiary of Zhongshan Changhong Electric Co., LTD (hereinafter referred to as ZhongshanChanghong) with registered capital of one million Yuan
26) Hebei Hongmao Household Appliance Technology Co., Ltd. (hereinafter referred to as Hebei Hongmao) was
established on 21 July 2017 with registered capital of 5 million Yuan. Changhong Ridian invested 5 million Yuan byown fund and takes 100% in registered capital.
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
27) Anhui Tuoxing Technology Co., Ltd. (hereinafter referred to as Anhui Tuoxing) was established on 20 May 2019
with registered capital of 10 million Yuan and it is the subsidiary of Zhongke Meiling with fully-owned establishment.As of June 30, 2021, actually 10 million yuan contributed.
28) CH-Meiling.International (Philippines) Inc. was established on 13 February 2020 in Philippines with registered
capital of US$ 1,000,000, takes 100% of the equity. As of December 31, 2020, the Company has investedUS$ 1,000,000,
29) Hefei Changhong Meiling Life Electric Co., Ltd. (hereinafter referred to as Changmei Life) was established on 24
December 2020, jointly established by the Company and Ningbo Hongling Enterprise Management Partnership(Limited Partnership). As of June 30, 2021, the Company actually contributed 35 million yuan, representing 70% of theequity while 15 million yuan invested by Ningbo Hongling Enterprise Management Partnership (Limited Partnership),a 30% takes in the equity.30) Anhui Ling’an Medical Equipment Co., Ltd. (hereinafter referred to as Ling’an Medical) was established on 4September 2021, which is a wholly-owned subsidiary of Zhongke Meiling, and registered capital of 10 million yuan.As of June 30, 2021, actually 10 million yuan contributed.
(2) Major non-wholly-owned subsidiary
Subsidiary
Shareholding ratio
of minority
Gains/lossesattributable tominority in Current
Period
Dividend distributed
to minorityannounced inCurrent Period
Balance ofminority’s interest at
period-endZhongke Meiling 36.7317% 19,037,359.58 1,598,892.00 86,252,629.03
Hongyuan Ground
Energy
49.00% -4,964,708.04 12,147,092.24Ridian Technology 0.9639% -16,945.64 1,276,558.15Changmei Life 30.00% 5,211,265.13 20,211,265.13
(3) Financial information for major non-wholly-owned subsidiary
Subsidiary
Ending balanceCurrent assets Non-current assets Total assets Current liability
Non-current
liability
Total liabilities
Hongyuan GroundZhongkeMeiling
429,654,686.43 133,236,569.55 562,891,255.98 321,652,192.96 6,421,214.87 328,073,407.83HongyuanGroundEnergy
62,319,001.48 29,771,693.76
| Zhongke Meiling | ||
92,090,695.24 64,044,788.09 3,255,922.99 67,300,711.08
297,773,560.26 48,537,604.93 346,311,165.19 213,436,113.88 432,142.84 213,868,256.72
| Ridian Technology |
| Changmei Life |
317,064,609.76 317,064,609.76 249,693,726.01 249,693,726.01
(Continued)
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
Subsidiary
Opening balanceCurrent assets Non-current assets Total assets Current liability
Non-currentliability
Total liabilities
ZhongkeMeiling
| Zhongke Meiling | 386,201,073.54 | 133,596,263.07 |
519,797,336.61
| 323,587,127.53 |
| 8,867,591.28 | 332,454,718.81 |
HongyuanGroundEnergy
| 110,464,175.51 | 25,279,044.46 |
135,743,219.97
| 100,181,345.93 |
| 639,832.66 | 100,821,178.59 | ||
| Ridian Technology |
| 572,516,245.87 | 50,889,561.24 |
623,405,807.11
| 488,419,038.99 |
| 484,047.64 | 488,903,086.63 | ||
| Changmei Life |
(Continued)Subsidiary
Current PeriodOperation income Net profit
Total comprehensive
income
Cash flow fromoperation activityZhongkeMeiling
271,384,729.79 51,828,122.35 51,828,122.35 44,525,447.06HongyuanGroundEnergy
49,226,548.73
-10,132,057.22 -10,132,057.22 -57,732,313.13
| Ridian |
Technology
152,108,811.31 -2,059,812.01 -2,059,812.01 -206,486,307.38
Life
486,144,189.56 17,370,883.75 17,370,883.75 61,431,363.80
(Continued)
Subsidiary
Last PeriodOperation income Net profit
Total comprehensive
income
Cash flow fromoperation activityZhongkeMeiling
113,979,900.96 3,187,502.65 3,187,502.65 -1,593,316.20
ChangmeiHongyuan
GroundEnergy
89,983,710.53
| Hongyuan |
-9,754,270.96 -9,754,270.96 6,460,975.38RidianTechnology
388,868,705.58 8,761,499.08 8,761,499.08 -79,204,317.51ChangmeiLife
(4) Major limitation on using enterprise group’s assets and liquidate debts of enterprise group: nil
(5) Offering financial supporting or other supports for structured entity that included in consolidation
statement scope: nil
2. Changes of owner’ equity shares in subsidiary and its impacts: nil
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
3. Equity in joint venture or associate enterprise
(1) Major joint venture or associate enterprise
Joint venture or associate enterprise
Main officeplace
Register place
Businessnature
Shareholdingratio
（
%)
Accountingtreatment forinvestment ofjoint venture orassociateenterpriseDirect
ly
IndirectlyAssociated companies
（：
1.ChanghongRubaElectricCompany
(Private)Ltd.
Lahore,Pakistan
Lahore
| ： | ||
| Manufactures, |
sales
40.00 Equity
2.Hefei Xingmei
Ltd.
Hefei Hefei
Rental,agency
48.28
Equity
| Assets Management Co., |
| 3.Sichuan Zhiyijia Network Technology |
Co., Ltd.
Mianyang Mianyang Sales 50.00
Equity
Co., Ltd
Mianyang Mianyang
R & D, sales,after-sales
49.00 Equity
| 4.Hongyuan Ground Energy Heat Tech. |
| 5.Sichuan Tianyou Guigu Technology Co., |
Ltd
Mianyang Mianyang
sales
25.00 Equity
| Manufactures, | ||
| 6.Chengdu Guigu Environmental Tech. Co., |
Ltd.
Chengdu Chengdu
R&D,manufacturin
g and sales
25.00 Equity
(2) Financial information for major Joint venture: nil
(3) Financial information for associate enterprise
Item
Ending balance/Current PeriodChanghongRubaElectricCompany(Pri
vate)Ltd.
Hefei Xingmei
AssetsManagement
Co., Ltd.
Sichuan ZhiyijiaNetwork Technology
Co., Ltd.
HongyuanGround EnergyHeat Tech. Co.,Ltd
Sichuan Tianyou
GuiguTechnology Co.,
Ltd
Chengdu GuiguEnvironmentalTech. Co., Ltd.Current assets
134,730.09
| 119,979,518.16 |
| 4,209,479,633.63 | 40,469,336.49 | 11,295,307.29 |
| 24,228,107.02 | ||
| Including: cash and |
cash equivalent
27,526.83
| 7,210,015.53 |
| 2,349,292,997.85 | 104,814.25 |
| 4,364,075.98 | 9,789,062.89 |
Non-current assets
18,174,212.08
| 44,109,181.42 |
| 9,751,159.60 | 9,249,737.02 |
| 12,352.49 | 13,419,496.74 |
Total assets
18,308,942.17
| 164,088,699.58 |
| 4,219,230,793.23 | 49,719,073.51 | 11,307,659.78 |
Current liability
| 37,647,603.76 | ||
| 171,913,449.12 |
5,137,337.05
| 4,157,099,291.25 |
| 6,374,225.39 | 116,070.34 |
Non-currentliability
| 17,034,439.84 | |||
| 2,221,938.05 |
Total liabilities
| 1,977,248.32 | ||
| 171,913,449.12 |
5,137,337.05
| 4,159,321,229.30 |
| 6,374,225.39 | 116,070.34 |
Minority's interest
| 19,011,688.16 | |||
| 1,083,928.80 | ||
| Equity attributable to shareholder of |
parent company
-
13,171,605.12
| 7,824,749.54 |
| 59,909,563.93 | 43,344,848.12 | 11,191,589.44 |
| 17,551,986.80 | ||
| Share of net assets measured by |
shareholding
-
6,359,250.95
| 3,129,899.82 |
| 29,954,781.97 | 21,238,975.58 |
| 2,797,897.36 | 4,387,996.70 |
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
Item
Ending balance/Current PeriodChanghongRubaElectricCompany(Private)Ltd.
Hefei XingmeiAssetsManagementCo., Ltd.
Sichuan ZhiyijiaNetwork TechnologyCo., Ltd.
HongyuanGround EnergyHeat Tech. Co.,
Ltd
Sichuan Tianyou
GuiguTechnology Co.,Ltd
Chengdu GuiguEnvironmentalTech. Co., Ltd.Adjustment
--Goodwill
| 821,877.28 |
| 1,416,227.93 | ||
| Unrealized profit of the internal |
downstreamtransactions
| 265,726.62 | 7,821,342.04 |
| 60,650.76 | 4,349.86 |
| 10,147.35 | ||
| Unrealized profit of the internal |
upstreamtransactions
Other
| 3,395,626.44 |
| Book value of the equity investment for associate |
enterprise
6,359,250.95
| 22,955,317.21 | 21,178,324.82 |
| 2,793,547.50 | 5,794,077.28 | ||
| Fair value of equity investment for the affiliates with |
considerationpublicly
Operation income
| 129,037,750.98 |
| 5,593,676,163.39 | 1,673,087.14 |
| 718,023.89 | 7,596,668.97 |
Financial expenses
236,147.00
| 387,772.68 |
-
| 33,239,098.14 | 338.80 |
-
-
| 59,414.10 | 51,562.20 | ||
| Income tax |
expenses
| 1,709,882.92 | 147,397.82 |
-
Net profit
| 7,290,919.13 |
-967,324.02
-
| 27,599,431.03 |
-
-
| 1,875,733.81 | 226,371.54 |
-
| 1,079,748.77 | ||
| Net profit of |
discontinuingoperation
| Other |
comprehensiveincome
-
| 148,798.81 |
Totalcomprehensiveincome
| 7,142,120.32 |
-967,324.02
-
| 27,599,431.03 |
-
-
| 1,875,733.81 | 226,371.54 |
-
| 1,079,748.77 | ||
| Dividend received from associate enterprise in |
Current Period
(Continued)Item
Opening balance/Last PeriodChanghongRubaElectricCompany(Private)Ltd.
Hefei Xingmei
AssetsManagement
Co., Ltd.
Sichuan ZhiyijiaNetwork Technology
Co., Ltd.
HongyuanGround EnergyHeat Tech. Co.,
Ltd
Sichuan TianyouGuigu Technology
Co., Ltd
Chengdu GuiguEnvironmentalTech. Co., Ltd.Current assets
68,287,114.60
| 68,287,114.60 | 626,580.92 |
40,622,241.47
21,480,727.03
| 3,812,812,831.86 |
17,707,474.4
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
Item
Opening balance/Last PeriodChanghongRubaElectricCompany(Private)Ltd.
Hefei XingmeiAssetsManagementCo., Ltd.
Sichuan ZhiyijiaNetwork TechnologyCo., Ltd.
HongyuanGround EnergyHeat Tech. Co.,Ltd
Sichuan TianyouGuigu TechnologyCo., Ltd
Chengdu GuiguEnvironmentalTech. Co., Ltd.
Including: cash and
cash equivalent
| Including: cash and | 5,536,272.95 |
| 119,477.66 | 2,996,535,171.99 |
52,958.51
10,450,786.16
2,371,663.95
Non-current assets
| 45,830,745.35 | 18,704,537.29 |
10,161,277.73
12,352.49
| 1,226,646.52 |
13,175,012.6
Total assets
| 114,117,859.95 | 19,331,118.21 |
50,783,519.20
21,493,079.52
| 3,814,039,478.38 |
30,882,487.0
Current liability
| 129,084,729.80 |
| 5,192,189.07 | 3,724,855,931.57 |
5,562,937.27
10,075,118.54
19,463,087.1
Non-current liability -
| 117,900.00 |
1,886,933.19
Total liabilities
| 129,084,729.80 |
| 5,192,189.07 | 3,724,973,831.57 |
5,562,937.27
10,075,118.54
21,350,020.3
Minority's interest
822,750.86
| Equity attributable to shareholder of |
parent company
-
| 14,966,869.86 | 14,138,929.14 |
45,220,581.93
11,417,960.98
| 89,065,646.81 |
8,709,715.85
| Share of net assets measured by |
shareholding
-
| 5,986,747.94 | 6,826,274.99 |
22,158,085.15
2,854,490.25
| 44,532,823.41 |
2,177,428.96
Adjustment
--Goodwill
| 821,877.28 |
3,887,027.34
| Unrealized profit of the internal |
downstreamtransactions
| 49,697.83 |
54,975.58
4,398.74
| 6,191,361.16 |
24,449.53
| Unrealized profit of the internal upstream |
transactions
Other
| 5,937,050.11 |
| Book value of the |
equity investment
enterprise
| for associate |
| 6,826,274.99 | 39,163,339.53 |
22,103,109.57
2,850,091.51
6,040,006.77
| Fair value of equity investment for the affiliates with |
considerationpublicly
Operation income
| 45,300,541.58 |
23,259,797.54
10,087.61
| 3,605,343,938.12 |
1,501,031.58
Financial expenses
| 10,265,459.27 |
-
-
| 1,117.38 | 22,628,943.85 |
1,359.95
-134,260.28
124,588.98
Income tax expenses
| 1,037,833.62 |
Net profit
-
| 11,109,497.99 |
-
| 639,886.66 | 5,881,057.16 |
-128,904.93
23,543.66
-4,433,824.06
| Net profit of |
discontinuingoperation
| Other |
comprehensiveincome
| 188,871.84 |
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
Item
Opening balance/Last PeriodChanghongRubaElectricCompany(
Private)Ltd.
Hefei XingmeiAssetsManagementCo., Ltd.
Sichuan ZhiyijiaNetwork TechnologyCo., Ltd.
HongyuanGround EnergyHeat Tech. Co.,Ltd
Sichuan TianyouGuigu Technology
Co., Ltd
Chengdu GuiguEnvironmentalTech. Co., Ltd.
Total comprehensive
income
-
| Total comprehensive | 10,920,626.15 |
-
| 639,886.66 | 5,881,057.16 |
-128,904.93
23,543.66
-4,433,824.06
| Dividend received from associate |
enterprise in
Period
| Current |
6,649,787.97
(4) Financial summary for non-important Joint venture and associate enterprise
Item
Ending balance/Current
Period
Opening balance/Last PeriodAssociated companies
Total book value of investment
：
Total amount measured by shareholding
ratio
--Net profit -69,558.59 -129,133.66--Other comprehensive income-- Total comprehensive income -69,558.59 -129,133.66
(5) Major limitation on capital transfer ability to the Company from joint venture or affiliates: Nil
(6) Excess loss occurred in joint venture or affiliates: Nil
(7) Unconfirmed commitment with joint venture investment concerned: Nil
(8) Intangible liability with joint venture or affiliates investment concerned: Nil
4. Major conduct joint operation: Nil
5. Structured body excluding in consolidate financial statement: Nil
IX. Relevant risks related with financial instrumentThe major financial instruments of the Company include borrowings, account receivables, accountpayable, Trading financial assets, Trading financial liability, the details of which are set out in NoteVI. Risks related to these financial instruments include exchange risks and interest rate risks. Themanagement of the Company controls and monitors the risk exposures to ensure the above risks areunder control.In connection with exchange risks, in order to prevent from exchange risks arising from foreigncurrency transaction amount, foreign currency dominated loans and interest expenditure, the Company
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
entered into several forward exchange contracts with banks. Fair value of the forward exchangecontract which has been recognized as derivative financial instrument has been included in profits andlosses. As export business is increasing, if risks that are out of control of the Company occur such asappreciation of RMB, the Company will mitigate the relevant risks by adjusting its sales policy.The Company’s interest rate risk arises from bank borrowings and interest-bearing debt. Financialliabilities at floating rate expose the Company to cash flow interest rate risk, and financial liabilities atfixed rate expose the Company to fair value interest rate risk. The Company will determine therespective proportion of contracts at fixed and floating rates based on the prevailing marketconditions. As of 30 June 2021, the interest-bearing debts mainly referred to borrowing contracts atfloating rate denominated in RMB with total amount of 810,984,823.95 Yuan, the floating rate loancontract measured by RMB amounted as 542,000,000.00 Yuan in total; borrowing contracts at fixedrate denominated in USD with total amount of 96,901,500.00 Yuan; borrowing contracts at fixed ratedenominated in IDR with total amount of 8,160,000.00 Yuan. Risks relating to change of fair value offinancial instruments arising from movement of interest rate mainly related to bank borrowings atfixed rate. As for borrowings at fixed rate, the Company aims to keep its floating rate. Risks relating tochange of cash flow of financial instruments arising from movement of interest rate mainly related tobank borrowings at floating rate. The Company establishes its policy to keep floating rate for theseborrowings so as to eliminate fair value risk arising from movement of interest rate.X. Fair value disclosure
1. Asset and liability measured by fair value at end of Current Period and fair value measurement level
Item
Fair value at period-end
st
level 2
| st | nd |
level 3
level
Total
| rd | ||
| I. Continuous fair value |
measurement
— — — —(i) Trading financial assets 28,746,156.57 726,926,621.92
755,672,778.49
| 1.Financial assets measured at fair value and whose changes are |
included in current gains/losses
28,746,156.57 726,926,621.92
755,672,778.49
| Including: Derivative financial |
assets
28,746,156.57
28,746,156.57
| Principal and Interest of |
Wealth Management Products
726,926,621.92
726,926,621.92
(ii) Other non-
assets
43,148,931.34 505,000,000.00
| current financial |
548,148,931.34
(iii) Receivables financing 1,132,467,568.98
1,132,467,568.98
| Total assets continuously |
measured at fair value
28,746,156.57
770,075,553.26
| 1,637,467,568.98 | 2,436,289,278.81 |
(ii) Trading financial liability 2,746,170.22
2,746,170.22
| 1. Financial liabilities measured by |
2,746,170.22
2,746,170.22
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
Item
Fair value at period-end
st
level 2
| st | nd |
level 3
level
Total
| rd | ||
| fair value and with variation |
reckoned into current gains/losses
liability
2,746,170.22
| Including: Derivative financial |
2,746,170.22
| Total liabilities continuously |
measured at fair value
2,746,170.22
2,746,170.22
2. The basis for determining the market price of continuous and non-continuous first-level fair value
measurement itemsThe company's fair value measurement items are futures contracts and foreign exchange options. Themarket price of futures contracts is determined based on the closing price of the futures contract at theend of the period; the market price of foreign exchange options is determined based on the quotationof contract products of the foreign exchange options at the end of the period.
3. Qualitative and quantitative information on the valuation techniques used and important parameters
for continuous and non-continuous second-level fair value measurement itemsThe fair value measurement items are long-term investments in the fund company. For long-terminvestments in fund companies, the assessed book value can represent the best estimate of fair valuewithin the scope.
4. Qualitative and quantitative information on the valuation techniques used and important parameters
for continuous and non-continuous third-level fair value measurement itemsThe company’s fair value measurement items are investments in Sichuan Changhong Group FinanceCo., Ltd. and Huishang Bank Co., Ltd. Since there is no active market quotation and no major changeshave been found in the investment until the reporting period, the investment cost represents the bestestimate of the fair value within the scope, so its cost is regarded as the fair value. Due to the shortremaining period of the receivables financing, the book value is close to the fair value, and the faceamount is used as the fair value.
XI. Related parties and related transaction(I) Relationship of related parties
1. Controlling shareholder and ultimate controller
(1) Controlling shareholder and ultimate controller
Controlling shareholder andultimate controller
Registrationplace
Business
nature
Registered capital
Share-holding ratio
in theCompany
Voting rights
ratio in theCompanySichuan Changhong Electric Co.,Ltd.
Miany
ang
Manufacture and sales
4,616,244,222.00 26.98% 26.98%
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
Sichuan Changhong Electronics Holding Group is the controlling shareholder of Sichuan Changhong Electric Co.,LTD, and the SASAC Mianyang office holds 100.00% equity interests of Sichuan Changhong Electronic HoldingGroup, which means that SASAC Mianyang office is the ultimate controller of the Company.
(2) Register capital and change thereof of controlling shareholder
Controlling shareholder Opening balance
Increasethisperiod
Decreasethis period
Ending balance
Sichuan Changhong Electric Co.,
Ltd.
4,616,244,222.00
4,616,244,222.00
(3) Shares held by the controlling shareholder and its changes on equity
Controlling shareholder
Amount of shares held Shareholding ratioEnding balance Opening balance
Sichuan Changhong Electric Co.,Ratio at
period-end
| Ratio at | Ratio at period- |
beginning
Ltd.
281,832,434.00 281,832,434.00 26.98% 26.98%
2. Subsidiary
Found more in Note “VIII. 1 (1) Enterprise group composition”
3. Joint venture and associated enterprise
Major Joint venture and associated enterprise of the Company found more in Note “VIII. 3 (1) majorjoint venture and associated enterprise”. Other Joint venture and associated enterprise that have relatedtransactions occurred with the Company in Current Period or occurred in last period, and with balanceresults:
Joint venture and associated enterprise Relationship with the companyHefei Meiling Solar Energy Technology Co., Ltd. Associated enterprise of subsidiary Meiling GroupChanghong Ruba Electric Company (Private) Ltd. Associated enterprise of subsidiary Zhongshan ChanghongHefei Xingmei Assets Management Co., Ltd. Associated enterprise of the CompanySichuan Zhiyijia Network Technology Co., Ltd.
Sichuan Changhong Electric Co.,Associated enterprise of the Company, has the same
controlling shareholder and actual control of the CompanyHongyuan Ground Energy Heat Tech. Co., Ltd
| Associated enterprise of the Company, has the same |
| Associated enterprise of subsidiary Changhong Air- |
conditionerSichuan Tianyou Guigu Technology Co., Ltd
conditionerChengdu Guigu Environmental Tech. Co., Ltd.
Associated enterprise of subsidiary Changhong Air-
conditioner
4. Other related party
Other related party Relationship with the company
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
Other related party Relationship with the companySichuan Changhong International Travel Service Co.,Ltd.
Control by same controlling shareholder and ultimate
controllerHunan Grand-Pro Intelligent Tech. Company
| Control by same controlling shareholder and ultimate |
| Control by same controlling shareholder and ultimate |
controller
PTY.LTD.
| CHANGHONG.ELECTRIC.(AUSTRALIA) | Control by same controlling shareholder and ultimate |
controllerCHANGHONG ELECTRIC MIDDLE EAST FZCO
controllerSichuan Changhong Electronic Products Co., Ltd.
| Control by same controlling shareholder and ultimate |
| Control by same controlling shareholder and ultimate |
controllerHefei Changhong New Energy Technology Co., Ltd.
controllerSichuan Changhong Mold Plastic Tech. Co., Ltd.
Control by same controlling
| Control by same controlling shareholder and ultimate |
| shareholder and ultimate |
controllerChanghong Europe Electric s.r.o
controllerChanghong Huayi Compressor Co., Ltd.
| Control by same controlling shareholder and ultimate |
| Control by same controlling shareholder and ultimate |
controllerSichuan Changhong Jijia Fine Co., Ltd.
controllerSichuan Changhong Minsheng Logistics Co., Ltd.
| Control by same controlling shareholder and ultimate |
| Control by same controlling shareholder and ultimate |
controller
Ltd.
| Sichuan Service Exp. Appliance Service Chain Co., | Control by same controlling shareholder and ultimate |
controller
Ltd.
| Sichuan Changhong Precision Electronics Tech. Co., | Control by same controlling shareholder and ultimate |
controllerPT.CHANGHONG ELECTRIC INDONESIA
Control by same controlling shareh
controllerCHANGHONG (HK) TRADING LIMITED
| older and ultimate |
| Control by same controlling shareholder and ultimate |
controllerSichuan Changhong Device Technology Co., Ltd.
controllerChengdu Changhong Electronic Technology Co., Ltd.
| Control by same controlling shareholder and ultimate |
| Control by same controlling shareholder and ultimate |
controllerLejiayi Chain Management Co., Ltd.
controllerSichuan Hongwei Technology Co., Ltd.
| Control by same controlling shareholder and ultimate |
| Control by same controlling shareholder and ultimate |
controllerSichuan Changhong Real Estate Co., Ltd.
controllerSichuan Changhong New Energy Technology Co., Ltd.
Control by same controlling shareholder and ultimate
controllerHefei Changhong Industrial Co., Ltd.
Control by same controlling shareholder and ultimateControl by same controlling shareholder and ultimate
controller
| Control by same controlling shareholder and ultimate | |
| Changhong International Holdings (Hong Kong) Co., |
Ltd.
controllerGuangdong Changhong Electronics Co., Ltd.
| Control by same controlling shareholder and ultimate |
| Control by same controlling shareholder and ultimate |
controllerSichuan Changhong Package Printing Co., Ltd.
controllerSichuan Changhong Solar Technology Co., Ltd.
Con
| Control by same controlling shareholder and ultimate |
| trol by same controlling shareholder and ultimate |
controller
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
Other related party Relationship with the companySichuan Changhong Power Supply Co. Ltd.
Control by same controlling shareholder and ultimate
controllerSichuan Hongxin Software Co., Ltd.
| Control by same controlling shareholder and ultimate |
| Control by same controlling shareholder and ultimate |
controllerSichuan Changhong Network Technology Co., Ltd.
controller
| Control by same controlling shareholder and ultimate | |
| Guangyuan Changhong Electronic Technology Co., |
Ltd.
controllerYuanxin Financial Lease Co., Ltd.
| Control by same controlling shareholder and ultimate |
| Control by same controlling shareholder and ultimate |
controllerOrion.PDP.Co.,ltd
controller081 Electronic Group Co., Ltd.
Control by same controlling shareholder and ultimate
controllerSichuan Changhong International Hotel Co., Ltd.
Control by same controlling shareholder and ultimateControl by same controlling shareholder and ultimate
controllerSichuan Aichuang Science & Technology Co., Ltd.
| Control by same controlling shareholder and ultimate |
| Control by same controlling shareholder and ultimate |
controllerSichuan Ch
Technology Co., Ltd.
| anghong Intelligent Manufacturing | Control by same controlling shareholder and ultimate |
controllerSichuan Changhong Property Services Co., Ltd.
controllerSichuan Huanyu Industrial Co., Ltd.
| Control by same controlling shareholder and ultimate |
| Control by same controlling shareholder and ultimate |
controllerSichuan Jiahong Industrial Co., Ltd.
controllerSichuan Ailian Science & Technology Co., Ltd.
Control by same cont
| Control by same controlling shareholder and ultimate |
| rolling shareholder and ultimate |
controller
Tech. Co., Ltd.
| Sichuan Changhong Gerun Environmental Protection | Control by same controlling shareholder and ultimate |
controllerSichuan Huafeng Enterprise Group Co., Ltd.
Control by same controlling sharehol
controllerSichuan Changhong Group Finance Co., Ltd.
| der and ultimate |
| Control by same controlling shareholder and ultimate |
controllerMianyang Leyijia Tradeing Chain Co., Ltd.
controllerChanghong Grand-Pro Technology Co., Ltd.
| Control by same controlling shareholder and ultimate |
| Control by same controlling shareholder and ultimate |
controller
Ltd.
| Zhongshan Guanghong Moulding Technology Co., | Control by same controlling shareholder and ultimate |
controller
Ltd.
| Sichuan Hongcheng Construction Engineering Co., | Control by same controlling shareholder and ultimate |
controller
Technology Co., Ltd.
| Sichuan Changhong Jiechuang Lithium Battery | Control by same controlling shareholder and ultimate |
controllerMianyang Huafeng Interconnect Technology Co., Ltd
controllerSichuan Qiruike Technology Co., Ltd.
| Control by same controlling shareholder and ultimate |
| Control by same controlling shareholder and ultimate |
controllerSichuan Hongmofang Network Technology Co., Ltd.
controllerSichuan Changhong Intelligent Technology Co., Ltd.
| Control by same controlling shareholder and ultimate |
| Control by same controlling shareholder and ultimate |
controller
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
Other related party Relationship with the companySichuan Hongyu Metal Manufacturing Co., Ltd.
Associated enterprise of other enterprise that have the samecontrolling shareholderSichuan Hongran Green Energy Co., Ltd. Associated enterprise of controlling shareholderSichuan Changxin Refrigeration Parts Co., Ltd. Associated enterprise of controlling shareholderMianyang Highly Electric Co., Ltd. Associated enterprise of controlling shareholder(ii) Related transactions
1. Purchasing commodity
Related party Content
Current Period(in 10 thousand
Yuan)
Last Period(in 10 thousand
Yuan)Sichuan Changhong Mold Plastic Tech. Co., Ltd.
Purchasing commodity
47,151.
| Purchasing commodity | 73 |
28,634.55
Sichuan Changhong Electric Co., Ltd.
| Purchasing commodity | 31,287.06 |
18,465.23
Sichuan Changxin Refrigeration Parts Co., Ltd.
| Purchasing commodity | 29,722.49 |
13,415.61
Changhong Huayi Compressor Co., Ltd.
| Purchasing commodity |
25,353.49
17,759.15
Sichuan Changhong Jijia Fine Co., Ltd.
24,414.
| Purchasing commodity | 33 |
13,209.22
Mianyang Highly Electric Co., Ltd.
| Purchasing commodity | 18,284.13 |
7,870.76
Sichuan Changhong Package Printing Co., Ltd.
| Purchasing commodity | 6,913.07 |
3,616.69
| Sichuan Aichuang Science & Technology Co., |
Ltd.
5,848.84
| Purchasing commodity |
4,319.04
Changhong Ruba Electric Company (Private) Ltd.
| Purchasing commodity | 4,715.18 |
4,630.78
Sichuan Ailian Science & Technology Co., Ltd.
| Purchasing commodity | 1,934.07 |
1,641.27
Sichuan Changhong Electronic Products Co., Ltd.
| Purchasing commodity | 1,797.64 |
1,209.94
| Sichuan Changhong Precision Electronics Tech. |
Co., Ltd.
| Purchasing commodity | 1,291.84 |
744.35
| Changhong International Holdings (Hong Kong) |
Co., Ltd.
| Purchasing commodity | 672.20 |
870.43
Sichuan Zhiyijia Network Technology Co., Ltd.
| Purchasing commodity | 625.80 |
44.87
Hefei Changhong Industrial Co., Ltd.
| Purchasing commodity | 293.88 |
14.65
Guangdong Changhong Electronics Co., Ltd.
| Purchasing commodity | 254.71 |
196.21
Hunan Grand-Pro Intelligent Tech. Company
| Purchasing commodity | 75.66 |
766.89
| Zhongshan Guanghong Moulding Technology |
Co., Ltd.
77.26
| Purchasing commodity |
081 Electronic Group Co., Ltd.
| Purchasing commodity | 4.95 |
10.08
| Sichuan Changhong Intelligent Manufacturing |
Technology Co., Ltd.
| Purchasing commodity | 1.77 |
3.25
| Sichuan Changhong New Energy Technology Co., |
Ltd.
| Purchasing commodity | 0.96 |
1.71
Chengdu Guigu Environmental Tech. Co., Ltd.
| Purchasing commodity | 0.18 | ||
| Sichuan Changhong Electronics Holding Group |
Co., Ltd.
| Purchasing commodity |
1.59
Sichuan Changhong Property Services Co., Ltd.
| Purchasing commodity |
0.03
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
Related party Content
Current Period(in 10 thousandYuan)
Last Period(in 10 thousandYuan)
Guangyuan Changhong Electronic Technology
Co., Ltd.
| Guangyuan Changhong Electronic Technology | Purchasing commodity |
0.88
| Sichuan Service Exp. Appliance Service Chain |
Co., Ltd.
| Purchasing commodity |
0.19
Hongyuan Ground Energy Heat Tech. Co., Ltd
| Purchasing commodity |
374.67
Total
200,721.24
117,802.04
2. Accept the services
Related party Content Current Period Last Period
Sichuan Changhong Minsheng Logistics Co.,
Ltd.
| Sichuan Changhong Minsheng Logistics Co., | Accept the |
services
224,557,352.50
183,300,319.49
| Sichuan Service Exp. Appliance Service Chain |
Co., Ltd.
Accept the
services
93,499,148.00
91,822,618.54
| Changhong International Holdings (Hong Kong) |
Co., Ltd.
Accept the
services
2,433,372.32
Sichuan Jiahong Industrial Co., Ltd.
Accept the
services
2,219,124.89
471,372.03
Sichuan Changhong Electric Co., Ltd.
Accept theservices
1,848,713.48
10,404,495.04
Sichuan Hongwei Technology Co., Ltd.
services
1,630,024.98
| Accept the |
4,108,738.76
Sichuan Changhong Property Services Co., Ltd.
Accept theservices
1,256,815.72
1,627,043.79
| Sichuan Changhong Intelligent Manufacturing |
Technology Co., Ltd.
Accept theservices
637,456.72
884.96
Sichuan Hongxin Software Co., Ltd.
Accept theservices
627,830.20
703,487.72
Sichuan Changhong Electronics Holding
Co., Ltd.
Accept the
services
410,018.80
| Group |
711,931.57
Guangdong Changhong Electronics Co., Ltd.
| Accept the |
services
381,270.76
142,467.10
| Sichuan Changhong International Travel Service |
Co., Ltd.
Accept the
services
231,756.12
99,699.89
| Sichuan Changhong Electronic Products Co., |
Ltd.
Accept the
services
124,574.71
| Sichuan Changhong Mold Plastic Tech. Co., |
Ltd.
Accept theservices
66,728.31
509,633.16
Sichuan Zhiyijia Network Technology Co., Ltd.
Accept the
services
36,917.82
113,548.74
| Sichuan Changhong International Hotel Co., |
Ltd.
services
14,824.98
| Accept the |
10,827.32
| Sichuan Aichuang Science & Technology Co., |
Ltd.
Accept theservices
13,211.15
Sichuan Changhong Jijia Fine Co., Ltd.
Accept theservices
642,657.00
| Sichuan Hongmofang Network Technology Co., |
Ltd.
Accept the
services
2,122.64
Total
329,989,141.46
294,671,847.75
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
3. Purchase fuel and power
Related party Content Current Period Last PeriodSichuan Changhong Electric Co., Ltd. Accept fuel power 10,484,815.16
| 8,261,144.64 |
Sichuan Hongran Green Energy Co., Ltd. Accept fuel power 572,392.86
| 189,240.25 |
Guangdong Changhong Electronics Co., Ltd. Accept fuel power 520,124.75
| 463,030.92 |
Changhong Huayi Compressor Co., Ltd. Accept fuel power 202,230.10
| 188,715.05 |
Hefei Changhong New Energy Technology Co., Ltd. Accept fuel power 172,184.57
| 160,813.32 |
Sichuan Changhong Property Services Co., Ltd. Accept fuel power 12,564.80
| 6,680.80 |
Total
| 11,964,312.24 |
9,269,624.98
4. Sales of goods
Related party Content
Current Period(in 10 thousand
Yuan)
Last Period(in 10 thousand
Yuan)Sichuan Zhiyijia Network Technology Co., Ltd. Sales of goods 328,665.84
| 179,508.62 |
CHANGHONG(HK)TRADINGLIMITED Sales of goods 13,687.72
| 37,764.29 |
Sichuan Changhong Mold Plastic Tech. Co., Ltd. Sales of goods 13,068.52
| 8,464.02 | |||
| Changhong International Holdings (Hong Kong) Co., |
Ltd.
Sales of goods 10,567.62
| 3,122.61 |
Sichuan Changxin Refrigeration Parts Co., Ltd. Sales of goods 8,177.09
| 5,105.82 |
Changhong Europe Electric s.r.o Sales of goods 5,608.18
| 1,092.95 |
CHANGHONGELECTRIC(AUSTRALIA)PTY.LTD Sales of goods 5,310.94
| 5,137.25 |
Sichuan Changhong Jijia Fine Co., Ltd. Sales of goods 3,677.37
| 2,541.50 |
Changhong Ruba Electric Company (Private) Ltd. Sales of goods 2,356.10
| 258.73 |
Orion.PDP.Co.,ltd Sales of goods 1,985.69
| 1,049.00 |
Sichuan Changhong Electric Co., Ltd. Sales of goods 318.89
| 409.94 | |||
| Sichuan Service Exp. Appliance Service Chain Co., |
Ltd.
Sales of goods 293.76
| 194.88 |
Hongyuan Ground Energy Heat Tech. Co., Ltd Sales of goods 202.96
| 2,365.21 |
CHANGHONG ELECTRIC MIDDLE EAST FZCO Sales of goods 143.65
| 446.95 |
Sichuan Tianyou Guigu Technology Co., Ltd Sales of goods 50.64
Chengdu Guigu Environmental Tech. Co., Ltd. Sales of goods 41.36
| 62.47 |
PT.CHANGHONGELECTRICINDONESIA Sales of goods 27.80
| 670.07 |
Lejiayi Chain Management Co., Ltd. Sales of goods 18.04
| 451.13 |
Sichuan Aichuang Science & Technology Co., Ltd. Sales of goods 16.47
| 24.33 |
Guangdong Changhong Electronics Co., Ltd. Sales of goods 10.62
| 7.79 |
Sichuan Changhong Minsheng Logistics Co., Ltd. Sales of goods 9.73
| 42.12 |
Mianyang Leyijia Tradeing Chain Co., Ltd. Sales of goods 9.25
Guangyuan Changhong Electronic
Ltd.
Sales of goods 8.07
| Technology Co., |
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
Related party Content
Current Period(in 10 thousandYuan)
Last Period(in 10 thousandYuan)Hefei Changhong Industrial Co., Ltd. Sales of goods 7.89
| 0.24 |
Sichuan Changhong Real Estate Co., Ltd. Sales of goods 1.96
Sichuan Changhong Device Technology Co., Ltd. Sales of goods 0.08
081 Electronic Group Co., Ltd. Sales of goods 0.08
| Sichuan Changhong Gerun Environmental Protection |
Tech. Co., Ltd.
Sales of goods
| 418.11 |
Sichuan Huafeng Enterprise Group Co., Ltd. Sales of goods
| 20.28 |
Sichuan Changhong Power Source Co., Ltd. Sales of goods
| 1.81 | |||
| Sichuan Changhong New Energy Technology Co., |
Ltd.
Sales of goods
| 31.18 |
Total
| 394,266.32 | 249,191.65 |
5. Provide the services
Related party Content Current Period Last PeriodHongyuan Ground Energy Heat Tech. Co., Ltd
216,981.14
| Provide the services |
Sichuan Aichuang Science & Technology Co., Ltd.
254,071.82
| Provide the services |
40,367.92
Sichuan Changhong Minsheng Logistics Co., Ltd Provide the services
189,986.96
Guangdong Changhong Electronics Co., Ltd.
116,398.34
| Provide the services |
Sichuan Changhong Jijia Fine Co., Ltd.
94,798.00
| Provide the services |
138,484.44
Sichuan Changhong Mold Plastic Tech. Co., Ltd.
| Provide the services |
87,808.26
48,637.53
081 Electronic Group Co., Ltd.
47,230.97
| Provide the services |
Sichuan Huafeng Enterprise Group Co., Ltd.
13,205.66
| Provide the services |
174,311.83
Sichuan Zhiyijia Network Technology Co., Ltd.
| Provide the services |
12,600.00
Sichuan Changhong Electronic Products Co., Ltd.
11,021.81
| Provide the services | |||
| Sichuan Changhong Gerun Environmental Protection |
Tech. Co., Ltd.
9,433.96
| Provide the services |
Chengdu Guigu Environmental Tech. Co., Ltd.
8,874.24
| Provide the services | |||
| Sichuan Changhong Precision Electronics Tech. Co., |
Ltd.
6,434.91
| Provide the services |
Sichuan Hongwei Technology Co., Ltd.
1,440.00
| Provide the services | |||
| Sichuan Changhong Electronics Holding Group Co., |
Ltd.
-10,800.00
| Provide the services |
Sichuan Changhong Network Technology Co., Ltd.
-34,142.50
| Provide the services |
Sichuan Changhong Electric Co., Ltd.
-90,632.94
| Provide the services |
208,530.97
Sichuan Changhong Intelligent Technology Co., Ltd.
| Provide the services |
547,177.50
Sichuan
| Changhong Intelligent Manufacturing |
Technology Co., Ltd.
| Provide the services |
494,545.00
Sichuan Changhong Device Technology Co., Ltd.
| Provide the services |
105,644.50
| Sichuan Changhong New Energy Technology Co., |
Ltd.
| Provide the services |
113,853.33
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
Related party Content Current Period Last PeriodTotal
934,710.63
1,871,553.02
6. Provide fuel power
Related party Content Current Period Last Period
Ltd.
Provide fuel power 3,510,461.21 2,965,740.57Sichuan Changhong Device Technology Co.,Ltd.
Provide fuel power 310,921.71 361,054.22Sichuan Changhong Jijia Fine Co., Ltd. Provide fuel power 76,952.28 65,789.86
Sichuan Changhong Mold Plastic Tech. Co.,Sichuan Changhong Minsheng Logistics Co.,
Ltd.
Provide fuel power 28,024.31 34,091.79
| Sichuan Changhong Minsheng Logistics Co., |
| Sichuan Zhiyijia Network Technology Co., |
Ltd.
Provide fuel power 25,002.79 16,480.49
Kong) Co., Ltd.
Provide fuel power 23,176.99Guangdong Changhong Electronics Co., Ltd. Provide fuel power 5,371.01 12,670.97
Changhong International Holdings (HongSichuan Changhong Precision Electronics
Tech. Co., Ltd.
Provide fuel power 5,186.20 4,085.08
| Sichuan Changhong Precision Electronics |
Total 3,985,096.50 3,459,912.98Businesses between the Company and its connected persons are generally conducted under market operation rules as ifthey were the same as other business counter parties. For price of sale or purchase and provision of other labor servicebetween the Company and its related parties, the state pricing is applicable if the pricing do exists; in case of absence ofsuch state pricing, price is determined under market price; in case of absence of such market price, price is determinedby both parties at actual cost plus reasonable expenses; for some special services, the price of which cannot bedetermined under the rule of cost plus expense, the price shall be determined by both parties by negotiation.
7. Related rental
(1) Rent out
Lessor Lessee
| Type of assets | Leasing income in Current Period | Leasing income in Last Period |
ChanghongMeiling
Sichuan Changhong Mold Plastic Tech.Co., Ltd.
Apartment 215,400.00 249,003.66ChanghongMeiling
Sichuan Changhong Mold Plastic Tech.Co., Ltd.
Warehouse 143,182.65 173,480.38ChanghongMeiling
Hefei Changhong Industrial Co., Ltd. Apartment 122,170.38 56,700.43
Meiling
| Changhong | Sichuan Zhiyijia Network Technology |
Co., Ltd.
Apartment 98,968.06 98,968.06ChanghongMeiling
Logistics Co., Ltd.
Apartment 92,000.16 69,201.18ChanghongMeiling
| Sichuan Changhong Minsheng |
| Sichuan Service Exp. Appliance |
Service Chain Co., Ltd.
Apartment 79,200.00ChanghongSichuan Changhong Jijia Fine Co., Ltd. Warehouse 77,419.25 66,900.76
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
Lessor Lessee
Type ofassets
| Type of assets | Leasing income in Current Period | Leasing income in Last Period | ||
| Meiling |
ChanghongMeiling
Sichuan Changhong Jijia Fine Co., Ltd. Apartment 63,200.00 3,417.92
Meiling
| Changhong | Sichuan Changhong Mold Plastic Tech. |
Co., Ltd.
Workshop 31,119.62 357,577.84ChanghongMeiling
Electronics Tech. Co., Ltd.
Apartment 21,600.00 9,864.00ChanghongMeiling
Sichuan Changhong Jijia Fine Co., Ltd. Forklift 20,123.09 12,713.38ChanghongMeiling
Sichuan Changhong PrecisionSichuan Aichuang Science &
Technology Co., Ltd.
Warehouse 18,759.84 16,227.34ChanghongMeiling
| Sichuan Aichuang Science & |
| Sichuan Changhong Minsheng |
Logistics Co., Ltd.
Office 15,800.16
Meiling
Hefei Changhong Industrial Co., Ltd. Warehouse 3,237.74ChanghongMeiling
| Changhong | |
| Sichuan Service Exp. Appliance |
Service Chain Co., Ltd.
Forklift 2,400.00 4,800.00ChanghongMeiling
Sichuan Ailian Science & TechnologyCo., Ltd.
Warehouse 952.34 1,343.10ChanghongMeiling
Hefei Changhong Industrial Co., Ltd. Forklift 177.50ChanghongMeiling
Sichuan Changhong Jijia Fine Co., Ltd. Workshop 134,544.22
Meiling
| Changhong | Sichuan Aichuang Science & |
Technology Co., Ltd.
Forklift 2,532.50ChanghongMeiling
Sichuan Hongwei Technology Co., Ltd. Apartment 31,200.00ChanghongAir-conditioner
Sichuan Changhong Mold Plastic Tech.
Co., Ltd.
Workshop 2,962,527.42 2,962,527.42ChanghongAir-conditioner
Sichuan Changhong Jijia Fine Co., Ltd. Workshop 1,839,508.14 4,292,185.61ChanghongAir-conditioner
Sichuan Changhong Mold Plastic Tech.
Co., Ltd.
Equipment 672,368.04
Air-conditioner
Sichuan Changhong Jijia Fine Co., Ltd. Equipment 618,666.19ChanghongAir-conditioner
Sichuan Changhong Electric Co., Ltd. Workshop 481,457.77 327,319.42
ChanghongChanghong
Air-conditioner
Chengdu Guigu
| Changhong | Environmental Tech. |
Co., Ltd.
Workshop 28,403.67 28,403.67ChanghongAir-conditioner
Sichuan Changhong Electric Co., Ltd.
Meeting
room
1,834.86ZhongshanChanghong
Co., Ltd.
Officebuilding
22,485.99ZhongshanChanghong
Sichuan Changhong Mold Plastic Tech.Co., Ltd.
2# livingarea
22,364.52 27,080.00
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
Lessor Lessee
Type ofassets
| Type of assets | Leasing income in Current Period | Leasing income in Last Period |
ZhongshanChanghong
Logistics Co., Ltd.
Parts of theofficebuildingrent-out
22,148.58 16,422.70ZhongshanChanghong
| Sichuan Changhong Minsheng |
| Sichuan Changhong Precision |
Electronics Tech. Co., Ltd.
2# living
area
21,000.00 25,400.00ZhongshanChanghong
Technology Co., Ltd.
2# living
area
3,735.44 10,861.40ZhongshanChanghong
| Sichuan Changhong Device |
| Guangdong Changhong Electronics |
Co., Ltd.
2# livingarea
55,721.47JiangxiMeiling
Sichuan Changhong Mold Plastic Tech.Co., Ltd.
Workshop 411,144.18 409,855.80JiangxiMeiling
Logistics Co., Ltd.
| Sichuan Changhong Minsheng | Warehouse |
Office
6,857.14ZhongkeMeiling
Sichuan Changhong MinshengLogistics Co., Ltd.
Workshop 783,911.94 1,310,400.00RidianTechnology
Technology Co., Ltd.
Workshop 1,087,270.76 764,656.24RidianTechnology
Sichuan Hongwei Technology Co., Ltd. Workshop 47,314.29 45,257.14
Total
10,030,017.72
11,573,257.64
(2) Lessee of related parties
Lessor Lessee Type of assets
Sichuan Changhong DeviceLeasing income
in Current
| Period |
Leasing income in
Last Period
Holding Group Co., Ltd.
ChanghongAir-conditioner
Staff dormitory 101,443.84Sichuan Changhong Electric Co., Ltd.
ChanghongAir-conditioner
Workshop,
Office
264,244.07
Sichuan Changhong ElectronicsGuangdong Changhong Electronics
Co., Ltd.
HongyuanGround Energy
Staff dormitory 50,139.23 42,425.47
| Guangdong Changhong Electronics |
| Guangdong Changhong Electronics |
Co., Ltd.
Changhong
Workshop 677,103.14 338,551.56
| Zhongshan | |
| Guangdong Changhong Electronics |
Co., Ltd.
Changhong
Staff dormitory 67,231.64Sichuan Changhong Electric Co., Ltd.
MianyangMeiling
Workshop 1,630,727.51 1,766,436.48Sichuan Changhong ElectronicsHolding Group Co., Ltd.
Mianyang
Meiling
Staff dormitory 4,363.60 25,087.32Sichuan Changhong Electric Co., Ltd.
RidianTechnology
Staff dormitory 48,257.03
ZhongshanGuangdong Changhong Electronics
Co., Ltd.
| Guangdong Changhong Electronics | Ridian |
Technology
Staff dormitory 61,733.50 32,765.89Sichuan Changhong Electric Co., Ltd. Meiling Group Office 885,487.38
Technology Co., Ltd.
HongmeiIntelligent
Office 310,722.13Total 2,525,510.82 3,781,208.97
8. Related guarantee
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
Secured party Sponsored party
Maximum guarantee
amount
Start Date due
Completed(Y/N)(in 10 thousandYuan)
ChanghongMeiling
Jiangxi Meiling 10,000.00 2020.04.09 2021.04.09 YChanghongMeiling
ChanghongRuba 2,103.51 2019.12.23 2021.01.15 Y
Changhong
Meiling
ChanghongRuba 1,831.50 2020.12.16 2021.12.07 NChanghong
Meiling
RidianTechnology
3,000.00 2020.03.14 2021.03.13 NChanghong
Meiling
RidianTechnology
4,000.00 2020.03.30 2021.03.31 YChanghong
Meiling
RidianTechnology
6,500.00 2020.08.22 2021.08.22 NChanghong
Meiling
RidianTechnology
5,000.00 2020.07.03 2021.07.02 N
ChanghongChanghong
Meiling
| Changhong | Ridian |
Technology
4,000.00 2021.03.31 2022.03.31 NChanghong
Meiling
RidianTechnology
5,000.00 2021.06.09 2021.12.31 NChanghong
Meiling
Zhongke Meiling 2,000.00 2020.12.25 2021.09.26 NChanghongMeiling
Zhongke Meiling 3,000.00 2020.09.22 2021.09.22 NChanghongMeiling
Zhongke Meiling 2,000.00 2020.08.24 2021.08.24 Y
Meiling
Zhongke Meiling 1,000.00 2020.11.19 2021.11.18 NChanghongMeiling
Zhongke Meiling 1,000.00 2020.03.10 2021.03.10 YChanghongMeiling
Zhongke Meiling 1,500.00 2020.06.01 2021.03.12 YChanghong
Meiling
Zhongke Meiling 500.00 2020.06.30 2021.03.15 YChanghongMeiling
Zhongke Meiling 5,000.00 2021.05.24 2022.05.24 N
ChanghongChanghong
Meiling
Zhongke Meiling 2,000.00 2019.12.30 2020.11.22 Y
| Changhong |
| Changhong |
Meiling
Changhong
20,000.00 2020.06.12 2021.03.10 YChanghong
Meiling
ZhongshanChanghong
5,000.00 2020.03.09 2021.03.09 NChanghong
Meiling
ZhongshanChanghong
15,000.00 2020.01.10 2021.01.10 YChanghongMeiling
ZhongshanChanghong
5,500.00 2020.03.15 2021.03.15 Y
ZhongshanChanghong
Meiling
| Changhong | Zhongshan |
Changhong
17,900.00 2020.04.14 2021.04.13 Y
Meiling
| Changhong | Zhongshan |
Changhong
20,000.00 2020.03.30 2021.03.30 Y
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
Secured party Sponsored party
Maximum guarantee
amount
Start Date due
Completed
(Y/N)Changhong
Meiling
ZhongshanChanghong
12,000.00 2020.04.28 2021.04.28 YChanghong
Meiling
ZhongshanChanghong
10,000.00 2020.08.31 2021.08.31 YChanghong
Meiling
ZhongshanChanghong
15,000.00 2020.07.03 2021.07.02 N
Changhong
Meiling
| Changhong | Zhongshan |
Changhong
20,000.00 2021.04.08 2022.03.18 NChanghong
Meiling
ZhongshanChanghong
18,000.00 2021.03.29 2022.03.29 NChanghongMeiling
ZhongshanChanghong
13,000.00 2021.03.03 2022.03.03 NChanghongMeiling
ZhongshanChanghong
10,000.00 2021.05.25 2022.05.25 NChanghongMeiling
ZhongshanChanghong
9,000.00 2021.03.15 2022.03.15 N
Meiling
| Changhong | Zhongshan |
Changhong
20,000.00 2021.03.30 2022.03.30 NChanghong
Meiling
Nonferrous
Metals
1,000.00 2020.03.20 2021.03.05 YChanghong
Meiling
Meiling Group 6,000.00 2020.03.26 2021.03.26 NChanghong
Meiling
Meiling Group 10,000.00 2020.12.30 2021.12.29 NChanghong
Meiling
Meiling Group 5,000.00 2021.03.05 2022.03.05 NZhongke Meiling
Anhui Tuoxing 500.00 2021.04.01 2022.03.31 NCounterguarantee:
Jiangxi Meiling
Changhong
Meiling
10,000.00 2020.04.09 2021.04.09 YChanghongRuba
Changhong
Meiling
2,103.51 2019.12.23 2021.01.15 YChanghongRuba
Meiling
1,831.50 2020.12.16 2021.12.07 NRidianTechnology
Changhong
Meiling
3,000.00 2020.03.14 2021.03.13 NRidianTechnology
ChanghongMeiling
4,000.00 2020.03.30 2021.03.31 YRidianTechnology
Changhong
Meiling
6,500.00 2020.08.22 2021.08.22 NRidianTechnology
Changhong
Meiling
5,000.00 2020.07.03 2021.07.02 N
ChanghongRidian
Technology
| Ridian | Changhong |
Meiling
4,000.00 2021.03.31 2022.03.31 NRidianTechnology
Changhong
Meiling
5,000.00 2021.06.09 2021.12.31 NZhongke Meiling
Changhong
Meiling
2,000.00 2020.12.25 2021.09.26 NZhongke MeilingChanghong3,000.00 2020.09.22 2021.09.22 N
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
Secured party Sponsored party
Maximum guarantee
amount
Start Date due
Completed
(Y/N)
Meiling
Zhongke Meiling
| Meiling |
| Changhong |
Meiling
2,000.00 2020.08.24 2021.08.24 YZhongke Meiling
ChanghongMeiling
1,000.00 2020.11.19 2021.11.18 NZhongke Meiling
ChanghongMeiling
1,000.00 2020.03.10 2021.03.10 YZhongke Meiling
ChanghongMeiling
1,500.00 2020.06.01 2021.03.12 YZhongke Meiling
ChanghongMeiling
500.00 2020.06.30 2021.03.15 Y
Zhongke Meiling
Meiling
5,000.00 2021.05.24 2022.05.24 NZhongke Meiling
| Changhong |
| Changhong |
Meiling
2,000.00 2019.12.30 2020.11.22 YZhongshanChanghong
Changhong
Meiling
20,000.00 2020.06.12 2021.03.10 YZhongshanChanghong
Changhong
Meiling
5,000.00 2020.03.09 2021.03.09 NZhongshanChanghong
Changhong
Meiling
15,000.00 2020.01.10 2021.01.10 YZhongshanChanghong
Changhong
Meiling
5,500.00 2020.03.15 2021.03.15 Y
Changhong
| Zhongshan | Changhong |
Meiling
17,900.00 2020.04.14 2021.04.13 YZhongshanChanghong
Changhong
Meiling
20,000.00 2020.03.30 2021.03.30 YZhongshanChanghong
Changhong
Meiling
12,000.00 2020.04.28 2021.04.28 YZhongshanChanghong
Changhong
Meiling
10,000.00 2020.08.31 2021.08.31 YZhongshanChanghong
Changhong
Meiling
15,000.00 2020.07.03 2021.07.02 N
Changhong
| Zhongshan | Changhong |
Meiling
20,000.00 2021.04.08 2022.03.18 NZhongshanChanghong
Changhong
Meiling
18,000.00 2021.03.29 2022.03.29 NZhongshanChanghong
Changhong
Meiling
13,000.00 2021.03.03 2022.03.03 NZhongshanChanghong
Changhong
Meiling
10,000.00 2021.05.25 2022.05.25 NZhongshanChanghong
Changhong
Meiling
9,000.00 2021.03.15 2022.03.15 N
Changhong
| Zhongshan | Changhong |
Meiling
20,000.00 2021.03.30 2022.03.30 NNonferrousMetals
Changhong
Meiling
1,000.00 2020.03.20 2021.03.05 YMeiling Group
Changhong
Meiling
6,000.00 2020.03.26 2021.03.26 NMeiling GroupChanghong10,000.00 2020.12.30 2021.12.29 N
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
Secured party Sponsored party
Maximum guarantee
amount
Start Date due
Completed
(Y/N)
Meiling
Meiling Group
| Meiling |
| Changhong |
Meiling
5,000.00 2021.03.05 2022.03.05 N
9. Assets transfer of related parties
Related party Type Current Period Last Period
Manufacturing Technology Co., Ltd.
| Sichuan Changhong Intelligent | Purchase/ Purchase and |
construction of fixedassets
5,762,952.63 769,469.03Sichuan Changhong Electric Co., Ltd.
Purchase andconstruction of fixed
assets
5,595.00Sichuan Hongxin Software Co., Ltd.
Purchase intangibleassets
141,509.43Sichuan Changhong Mold Plastic Tech.Co., Ltd.
Purchasing fixed assets 521,211.50Sichuan Huanyu Industrial Co., Ltd.
Purchase andconstruction of fixedassets
366,972.48 2,164,755.99
Engineering Co., Ltd.
Purchase andconstruction of fixed
assets
1,950,244.22081 Electronic Group Co., Ltd.
Purchase andconstruction of fixed
assets
1,058,420.18Sichuan Changhong Electric Co., Ltd.
Purchase intangible
assets
471,698.11
Sichuan Hongcheng ConstructionSichuan Zhiyijia Network Technology
Co., Ltd.
Purchasing fixed assets 816,132.79
| Sichuan Zhiyijia Network Technology |
| Sichuan Changhong Jineng Sunshine |
Technology Co., Ltd.
Purchasing fixed assets 42,348.02Total
9,806,905.44
4,264,403.94
10. Other
Related party Content
Current Period (in 10thousand Yuan)
Last Period (in 10
thousand Yuan)
Co., Ltd.
Financing business, financingexpenses and financial leasing
34,194.22
| Yuanxin Financial Lease |
1,875.83
11. Related transaction with Changhong Finance Company
(1) Saving balance
Name of company Ending balance Opening balance
bank saving in the
periodChanghong Meiling Co., Ltd. 1,455,040,471.60 1,860,047,247.52
| Interest income from | |
29,842,699.24
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
Name of company Ending balance Opening balance
Interest income frombank saving in the
periodSichuan Changhong Air-conditioner Co.,Ltd.
630,595,432.94134,802,966.64
1,882,678.21Zhongshan Changhong Electric Co., Ltd. 423,266,221.83 404,582,475.31
2,869,751.36
Co., Ltd.
216,790,954.84 141,336,330.05
| Zhongke Meiling Cryogenic Technology |
3,596,177.24
Appliances Co., Ltd.
89,509,414.70
| Hefei Changhong Meiling Life |
566,299.32
Co., Ltd.
40,393,724.88 162,196,324.57
| Changhong Meiling Ridian Technology |
1,691,311.68
(Zhongshan) Co., Ltd.
14,816,171.21 69,211,263.89
| Ground Energy Heat Pump Tech. |
775,423.53Anhui Tuoxing Technology Co., Ltd. 10,114,495.37 10,243,055.56
134,772.07
| Hebei Hongmao Household Appliance |
Technology Co., Ltd
166,356.39 15,657,360.37
108,917.55
| Hongyuan Ground Energy Heat Pump |
Tech. Co., Ltd
25,126.44 114,826.06
300.38
Hefei Meiling Group Holdings Limited 12,575.02 3,742.21
7.28
Ltd.
50,979.44 50,871.36
| Mianyang Meiling Refrigeration Co., |
108.08
Jiangxi Meiling Electric Appliance Co.,Ltd.
9,565.269,544.98
20.28
Total 2,880,791,489.92 2,798,256,008.52
41,468,466.22
12. Borrowing: nil
13. Accounts receivable factoring: nil
(iii) Come and go balance with related parties
1. Receivable items
Item Related party
Ending balance Opening balanceBook balance
provision
Book balance
| Bad debt | Bad debt |
provision
receivable
| Account | Sichuan Zhiyijia Network |
Technology Co., Ltd.
1,091,290,661.24 11,516.14
152,851,050.10 5,950.95Accountreceivable
| CHANGHONG (HK) |
TRADING LIMITED
109,551,244.01 74,561,075.45Accountreceivable
Co., Ltd.
63,115,711.15 23,280,926.68
| Changhong International Holdings (Hong Kong) | |
| Account |
receivable
Company (Private) Ltd.
48,036,662.75 2,524,954.64
| Changhong Ruba Electric |
46,262,313.51 3,664,544.64Accountreceivable
CHANGHONGELECTRIC(AUSTRALIA) PTY.LTD.
40,846,257.34 82,523,745.73Accountreceivable
Electric s.r.o
36,220,317.38 7,285,475.46
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
Item Related party
Ending balance Opening balanceBook balance
Bad debtprovision
Book balance
Bad debtprovisionAccountreceivable
Orion.PDP.Co.,ltd 16,160,376.81 1,365,471.85
Account
receivable
| Account | Hongyuan Ground Energy |
Heat Tech. Co., Ltd
2,759,933.11 274,613.95
2,557,611.11 259,719.23Accountreceivable
CHANGHONG
| ELECTRIC MIDDLE |
EAST FZCO
635,699.68 1,641,684.42Accountreceivable
Electric Co., Ltd.
585,639.57 18,640.40
| Sichuan Changhong |
1,648,021.88
receivable
| Account | Sichuan Aichuang Science |
& Technology Co., Ltd.
572,239.19 1,235,293.51Accountreceivable
Co., Ltd.
431,371.34 179,721.66Accountreceivable
| Sichuan Service Exp. Appliance Service Chain |
| Lejiayi Chain |
Management Co., Ltd.
421,391.12 11,198.27
752,700.75 13,309.44Accountreceivable
Sichuan Changhong MoldPlastic Tech. Co., Ltd.
377,414.84 193,981.98
Account
receivable
| Account | PT.CHANGHONG |
ELECTRIC INDONESIA
278,000.00 703,520.00Accountreceivable
Enterprise Group Co., Ltd.
13,998.00Accountreceivable
Sichuan Changhong
| Sichuan Huafeng |
| Network Technology Co., |
Ltd.
291,996.61Accountreceivable
Ltd.
375,287.92Accountreceivable
| Sichuan Changhong Electronic Products Co., |
| Sichuan Changhong International Hotel Co., |
Ltd.
20,166.00Accountreceivable
Sichuan Changhong
Ltd.
12,173.16Accountreceivable
| Minsheng Logistics Co., |
| Guangdong Changhong |
Electronics Co., Ltd.
3,507.01Account
advance
| paid in | Sichuan Changhong Intelligent Manufacturing |
Technology Co., Ltd.
1,156,014.00 2,191,049.27Account
advance
| paid in | Sichuan Service Exp. Appliance Service Chain |
Co., Ltd.
64,685.49
advance
| Account paid in | Sichuan Zhiyijia Network |
Technology Co., Ltd.
16,813.41Account
advance
| paid in | Sichuan Changhong Minsheng Logistics Co., |
Ltd.
366,287.00
receivable
| Other | CHANGHONG (HK) |
TRADING LIMITED
1,773,143.47Otherreceivable
200,000.00 200,000.00
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
Item Related party
Ending balance Opening balanceBook balance
Bad debtprovision
Book balance
Bad debtprovision
Co., Ltd.
Otherreceivable
Hunan Grand-ProIntelligent Tech. Company
45,200.00 45,200.00Otherreceivable
Co., Ltd.Sichuan ChanghongInternational Hotel Co.,
Ltd.
39,550.00 39,550.00
| Sichuan Changhong International Hotel Co., | |
| Other |
receivable
Electric Co., Ltd.
2,657,173.57Otherreceivable
| Sichuan Changhong |
| Sichuan Changhong Real |
Estate Co., Ltd.
299,373.25Total 1,414,592,323.90 2,840,923.40 403,544,357.88 3,943,524.26
2. Payable items
Item Related party Ending balance Opening balance
payable
Sichuan Changhong Mold Plastic Tech. Co., Ltd. 233,841,328.64 44,726,533.64
| Account |
| Account |
payable
Sichuan Changhong Jijia Fine Co., Ltd. 133,610,712.15 30,784,821.38Accountpayable
Changhong Huayi Compressor Co., Ltd. 105,879,312.73 24,556,917.25Accountpayable
Sichuan Changhong Electric Co., Ltd. 76,799,589.89 48,150,899.09Accountpayable
Sichuan Changxin Refrigeration Parts Co., Ltd. 57,033,970.42
payable
Sichuan Changhong Package Printing Co., Ltd. 53,840,684.33 10,337,574.43
| Account |
| Account |
payable
Ltd.
38,519,998.62 36,339,436.08Accountpayable
Mianyang Highly Electric Co., Ltd. 25,685,924.67 10,035,029.02Accountpayable
Sichuan Ailian Science & Technology Co., Ltd. 12,939,462.28 3,067,909.39Accountpayable
Sichuan Changhong Electronic Products Co., Ltd. 11,062,588.35 2,388,369.91
Sichuan Aichuang Science & Technology Co.,Account
payable
Changhong Ruba Electric Company (Private) Ltd. 10,425,265.12 8,938,947.95
| Account |
| Account |
payable
Co., Ltd.
9,908,724.88 877,946.47Accountpayable
Changhong International Holdings (Hong Kong)Co., Ltd.
6,713,126.24 1,502,240.80Accountpayable
Sichuan Changhong Precision Electronics Tech.Sichuan Changhong Intelligent Manufacturing
Technology Co., Ltd.
5,504,701.91 962,930.89Accountpayable
CHANGHONG (HK) TRADING LIMITED 3,052,516.27 3,052,516.27
Sichuan Changhong Intelligent ManufacturingAccount
payable
Hefei Changhong Industrial Co., Ltd. 2,595,527.95 6,434,535.69
| Account |
| Account |
payable
Guangdong Changhong Electronics Co., Ltd. 1,955,036.10 848,590.31
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
Item Related party Ending balance Opening balanceAccountpayable
Sichuan Changhong Minsheng Logistics Co., Ltd. 608,980.06 863,688.97Accountpayable
Zhongshan Guanghong Moulding Technology
Co., Ltd.
253,335.76
| Zhongshan Guanghong Moulding Technology | |
| Account |
payable
Co., Ltd.
105,426.95 261,823.77Accountpayable
081 Electronic Group Co., Ltd. 61,292.73 136,168.13Accountpayable
Sichuan Changhong Jineng Sunshine Technology
Co., Ltd.
52,743.33 52,743.33Accountpayable
Sichuan Changhong International Travel ServiceCo., Ltd.
44,678.00 50,552.00Accountpayable
Sichuan Hongxin Software Co., Ltd. 28,301.89
Sichuan Service Exp. Appliance Service ChainAccount
payable
Sichuan Hongyu Metal Manufacturing Co., Ltd. 14,662.40Accountpayable
Sichuan Changhong New Energy Technology Co.,
Ltd.
11,182.86 5,333.60Accountpayable
Sichuan Hongwei Technology Co., Ltd. 3,225.71 3,225.71Accountpayable
Sichuan Changhong Power Source Co., Ltd. 1,870.82 1,870.82Accountpayable
Sichuan Changhong Device Technology Co., Ltd. 0.18
AccountAccount
payable
Sichuan Zhiyijia Network Technology Co., Ltd. 2,979,349.71Accountpayable
Hunan Grand-Pro Intelligent Tech. Company 433,594.69Accountpayable
AccountSichuan Changhong Electronics Holding Group
Co., Ltd.
6,687.52Contractliability
Changhong International Holdings (Hong Kong)Co., Ltd.
3,124,634.35Contractliability
Lejiayi Chain Management Co., Ltd. 826,463.34 1,774,510.16
Sichuan Changhong Electronics Holding GroupContract
liability
Changhong Grand-Pro Technology Co., Ltd. 689,291.22
| Contract |
| Contract |
liability
Technology Co., Ltd.
684,955.75Contractliability
Sichuan Changhong Electric Co., Ltd. 549,204.26 750,203.12Contractliability
Chengdu Guigu Environmental Tech. Co., Ltd. 329,148.67Contractliability
Sichuan Changhong Device Technology Co., Ltd. 59,317.08
Sichuan Changhong Jiechuang Lithium BatteryContract
liability
Sichuan Tianyou Guigu Technology Co., Ltd 52,176.99
| Contract |
| Contract |
liability
Sichuan Changhong Power Source Co., Ltd. 50,973.45Contractliability
FZCO
42,236.48Contractliability
Orion.PDP.Co.,ltd 16,471.68
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
Item Related party Ending balance Opening balanceContractliability
Sichuan Changhong Minsheng Logistics Co., Ltd. 13,060.00 9,355.42Contractliability
Sichuan Service Exp. Appliance Service Chain
Co., Ltd.
12,939.29 12,736.12
| Sichuan Service Exp. Appliance Service Chain | |
| Contract |
liability
Protection Tech. Co., Ltd.
5,090.51 5,090.51Contractliability
| Sichuan Changhong Gerun Environmental |
| Sichuan Changhong Electronics Holding Group |
Co., Ltd.
5,080.00 5,080.00Contractliability
Hefei Changhong Industrial Co., Ltd. 3,903.44 4,022.06Contractliability
CHANGHONG (HK) TRADING LIMITED 936.52 945.91Contractliability
Guangyuan
Co., Ltd.
442.48
| Changhong Electronic Technology | |
| Contract |
liability
081 Electronic Group Co., Ltd. 22.61 25.55Contractliability
Hongyuan Ground Energy Heat Tech. Co., Ltd 108,490.57Contractliability
Sichuan Changhong Real Estate Co., Ltd. 2,154.65Other payable Yuanxin Financial Lease Co., Ltd. 112,566,076.90 44,276,743.76Other payable Sichuan Changhong Minsheng Logistics Co., Ltd. 99,417,556.18
75,964,081.82Other payable Sichuan Changhong Mold Plastic Tech. Co., Ltd. 1,763,861.48 1,700,295.88Other payable Changhong Huayi Compressor Co., Ltd. 1,598,900.00 1,598,900.00Other payable
Sichuan Changhong Intelligent Manufacturing
Technology Co., Ltd.
749,467.36 1,722,946.07Other payable Sichuan Zhiyijia Network Technology Co., Ltd. 567,054.64 41,940.00Other payable
Sichuan Changhong Jineng Sunshine TechnologyCo., Ltd.
500,000.00 500,000.00Other payable Sichuan Changhong Jijia Fine Co., Ltd. 419,345.69 400,500.00Other payable Sichuan Changhong Electric Co., Ltd. 402,513.25 163,469.22Other payable Sichuan Qiruike Technology Co., Ltd. 224,348.62Other payable Sichuan Hongwei Technology Co., Ltd. 216,764.36Other payable Hunan Grand-Pro Intelligent Tech. Company 200,000.00 250,000.00Other payable
Sichuan Changhong Intelligent ManufacturingChanghong International Holdings (Hong Kong)
Co., Ltd.
75,751.51Other payable
| Changhong International Holdings (Hong Kong) |
| Sichuan Changhong Electronics Holding Group |
Co., Ltd.
62,721.60Other payable Sichuan Changhong Package Printing Co., Ltd. 57,232.00 50,000.00Other payable Sichuan Changxin Refrigeration Parts Co., Ltd. 53,400.67 46,702.03Other payable 081 Electronic Group Co., Ltd. 47,460.00 47,460.00Other payable Guangdong Changhong Electronics Co., Ltd. 38,660.60Other payable Chengdu Guigu Environmental Tech. Co., Ltd. 25,132.00Other payable
Protection Tech. Co., Ltd.
10,000.00 10,000.00Other payable Sichuan Changhong Property Services Co., Ltd. 1,404.40
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
Item Related party Ending balance Opening balanceOther payable
Sichuan Changhong Precision Electronics Tech.
Co., Ltd.
779.19 0.01
Other payable CHANGHONG (HK) TRADING LIMITED 32,607.64Other payable Sichuan Jiahong Industrial Co., Ltd. 23,100.04
Total
1,016,018,949.81
Sichuan Changhong Precision Electronics Tech.
367,301,597.36
(iv) Commitments from related parties: Nil
XII. Share-based payment: NilXIII. Contingency
1. Pending action or possible liabilities formed from arbitration: Nil
2. Contingency from external guarantee: Nil
3. Other contingency: Nil
XIV. Commitments: NilXV. Events occurring after the balance sheet date
1. Important non-adjustment items: Nil
2. Profit distribution: Nil
3. Major sales return: Nil
4. Other than the above mentioned events, the Company have no other events occurred after balance
sheet date.XVI. Other significant matters
1. Correction of previous periods and influence: Nil
2. Debt restructuring: Nil
3. Assets replacement: Nil
4. Pension plan: Nil
5. Discontinuing operation: Nil
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
6. Branch information
In 10 thousand YuanItem
Refrigerator,
freezerWashingmachine
Air-conditioner
Small appliancesand kitchen andbathroomdivision
Other division Sales in branch TotalOperation income
475,905.65
418,292.47
| 475,905.65 |
| 66,691.55 | 17,913.07 |
18,526.81
| 960,275.93 | |||
| Including: foreign |
trade income
418,257.71
| 472,547.83 |
| 61,455.05 | 8,015.34 |
| 960,275.93 | ||
| Income from |
transactionsbetween divisions
34.76
| 3,357.82 |
| 5,236.50 | 9,897.73 |
18,526.81
Operation expenses
| 470,187.22 |
426,277.65
| 64,799.76 |
18,495.81
| 15,512.41 |
Operation profit
| 958,281.23 | ||
| 5,718.43 |
-7,985.18
| 1,891.79 |
31.00
| 2,400.66 |
Total assets
| 1,994.70 | ||
| 1,227,098.25 |
545,367.60
| 63,719.06 |
179,711.75
| 21,087.72 |
Total liability
| 1,677,560.88 | ||
| 733,958.71 |
435,817.98
| 43,757.67 |
30,742.34
| 7,738.11 |
Supplementaryinformation
| 1,190,530.13 | ||
| Depreciation and |
amortization expenses
7,303.81
| 10,151.39 |
| 235.57 | 231.74 |
-13.09
| 17,935.60 |
Capital expenditure
3,976.65
| 5,175.48 |
| 0.37 | 789.16 |
7. Other major transactions and events shows impact on investor’s decision-making: Nil
XVII. Notes to main items of financial statement of parent company
1. Account receivable
(1) Presented according to the bad debt accrual method
Category
Ending balanceBook balance Bad debt provision
Book valueAmount Ratio Amount Ratio
9,941.66Account receivable that withdrawal
bad debt provision by single item
| Account receivable that withdrawal | 1,653,473,613.80 |
87.76%
| 2,258,191.61 |
0.14%
| 1,651,215,422.19 |
Including: Related party payments
85.23%
| 1,605,806,989.96 |
0.12%
| 1,907,017.88 | 1,603,899,972.08 | |||
| Account receivable with letter of |
credit
2.51%
| 47,315,450.11 |
| 47,315,450.11 | ||
| Account receivable with single minor amount but withdrawal single |
item bad debt provision
0.02%
| 351,173.73 |
100.00%
| 351,173.73 | ||||
| Account receivable withdrawal bad |
debt provision by portfolio
12.24%
| 230,537,906.56 | 13,606,655.61 |
5.90%
| 216,931,250.95 | |||
| Including: account receivable of |
engineering customers
0.33%
| 6,246,264.00 |
20.00%
| 1,249,252.80 |
| 4,997,011.20 | ||
| Receivables other than |
engineering customers
11.91%
| 224,291,642.56 | 12,357,402.81 |
5.51%
| 211,934,239.75 |
Total
100.00%
| 1,884,011,520.36 | 15,864,847.22 |
0.84%
| 1,868,146,673.14 |
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
(Continued)
Category
Opening balanceBook balance Bad debt provision
Book valueAmount Ratio Amount Ratio
Account receivable thatwithdrawal bad debt provision by
single item
858,063,066.45
| Account receivable that withdrawal bad debt provision by |
83.09% 3,370,366.42
0.39%
Including: Related party payments 815,741,150.65
| 854,692,700.03 | ||
78.99% 2,956,149.11
0.36%
| 812,785,001.54 | ||
| Account receivable with letter |
of credit
38,179,742.75
3.70%
| 38,179,742.75 | ||
| Account receivable with single minor amount but withdrawal single |
item bad debt provision
4,142,173.05
0.40% 414,217.31
10.00%
| 3,727,955.74 | |||
| Account receivable withdrawal |
bad debt provision by portfolio
174,658,647.31
16.91% 10,052,329.94
5.76%
| 164,606,317.37 | |||
| Including: account receivable of |
engineering customers
6,255,423.49
0.61% 1,250,265.60
19.99%
| 5,005,157.89 | |||
| Receivables other than |
engineering customers
168,403,223.82
16.31% 8,802,064.34
5.23%
| 159,601,159.48 |
Total 1,032,721,713.76
100.00% 13,422,696.36
1.30%
| 1,019,299,017.40 |
1) Provision for bad debts of account receivable on an individual basis
Account receivable with single minor amount but withdrawal bad debt provision singly, refers to theminor single receivables, and withdrawal bad debt provision by combination shows no riskcharacteristic of the receivables, 1 client involved.
2) Account receivable withdrawal bad debt provision by portfolio
A. Account receivable of engineering customers
Account age
Ending balanceBook balance
Bad debt
Accrual ratio (%)Within 3 months (3 months included)
| provision | |
Over 3 months and within 6 months (6 monthsincluded)
Over 6 months and within one year (One yearincluded)
4,095.49
Over one year -
included)
6,251,328.00
| within 2 years (2 years |
1,250,265.60 20.00%Over 2 years -
included)
| within 3 years (3 years |
50.00%
Over 3 years
100.00%
Total6,255,423.49
1,250,265.60
B. Receivables other than engineering customers
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
Account age
Ending balanceBook balanceBad debt
provision
Accrual ratio (%)Within 3 months (3 months included)
| provision | |
| 197,888,607.96 |
1,978,886.08
1.00%
Over 3 months and within 6 months (6
| months included) |
722,681.57
| 7,226,815.70 |
10.00%
Over 6 months and within one year (One
| year included) | 8,026,061.58 |
1,605,212.32
20.00%
Over one year - within 2 years (2 years
| inclded) |
2,832,200.75
| 5,664,401.49 |
50.00%
Over 2 years - within 3 years (3 years
| included) | 1,336,668.72 |
1,069,334.98
80.00%
Over 3 years
| 4,149,087.11 |
4,149,087.11
100.00%
| Total |
12,357,402.81
| 224,291,642.56 |
(2) By account age
Account age Ending balanceWithin 3 months (3 months included)
Over 3 months and within 6 months (6 monthsincluded)
| 1,775,034,371.14 |
| 63,744,276.01 |
Over 6 months and within one year (One yearincluded)
Over one year -
| 15,973,988.88 | |
| within 2 years (2 years |
included)
Over 2 years - within 3 years (3 years included)
| 17,736,404.67 |
| 7,361,457.13 |
Over 3 years
Total
| 4,161,022.53 |
| 1,884,011,520.36 |
(3) Bad debt reserves of the account receivable
Category Opening balance
Amount change in the period
Ending balanceAccrual
Collected orswitch back
Resale or write-
offBad debtprovision
13,422,696.36 2,442,150.86 15,864,847.22Total 13,422,696.36 2,442,150.86
15,864,847.22
(4) Top 5 balance of account receivable aggregated by the debtor at end of the period amounted to
1,497,654,234.50 yuan, accounted for 79.49% of the receivables at balance of current period-end, thebad debt provision amounted as 392,875.38 yuan.
(5) There are no receivables derecognized due to the transfer of financial assets.
(6) There are no receivables and the amount of assets and liabilities formed by continued involvement
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
2. Other account receivable
Item Ending balance Opening balanceOther account receivable 46,277,319.42 49,093,918.57
Total 46,277,319.42 49,093,918.57
(1) By nature
Nature Ending book balance Opening book balanceRelated party in consolidation statement7,774,669.44 3,521,237.00Related party not in consolidation statement
200,000.00 200,000.00Loans of employee’s pretty cash3,933,825.65 5,697,517.11Cash deposit
2,020,000.00 6,507,745.28Export rebates32,398,824.33 32,281,664.19Other
935,978.02Total
46,327,319.42 49,144,141.60
(2) Provision for bad debt of other receivable
Bad debt reserves
First stage Second stage Third stage
TotalExpected credit
loss in next 12months
Expected credit loss
for the wholeduration (no credit
impairment)
Expected credit lossfor the wholeduration (creditimpairment has
occurred)
Balance as at 1 Jan.
2021
223.03
50,000.00
| Balance as at 1 Jan. |
50,223.03
Current Period as at 30Jun. 2021
— — ——--Transfer to the secondstage
--
Book balance of otheraccount receivable in
Transfer to the third
stage
| Transfer to the third |
| --Reversal to the second |
stage
stage
| --Reversal to the first |
| Provision in Current |
Period
-223.03 -
-223.03
| Reversal in Current |
Period
Period
| Conversion in Current |
| Write off in Current |
Period
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
Bad debt reserves
First stage Second stage Third stage
TotalExpected creditloss in next 12months
Expected credit lossfor the wholeduration (no creditimpairment)
Expected credit lossfor the wholeduration (creditimpairment has
occurred)Balance as at 30 Jun.2021
50,000.00
50,000.00
(3) By account age
Account age Ending balanceWithin 3 months (3 months included)
38,545,952.18Over 3 months and within 6 months (6 monthsincluded)
1,011,408.29Over 6 months and within one year (One yearincluded)
1,278,507.31over one year-within two years (2 years included)
1,122,830.00Over 2 years - within 3 years (3 years included)
1,062,091.90Over 3 years
3,306,529.74Total
46,327,319.42
(4) Top 5 balance of other account receivable aggregated by the debtor at end of the period
Name of the unit Nature Ending balance Account age
Proportion of the totalperiod-end balance ofother receivable
Ending
balance ofbad debtreserve
State TaxationBureau of HefeiEconomic and
TechnologicalDevelopment Zone
| State Taxation Bureau of Hefei Economic and | Export rebates |
32,398,824.33
Within 3months
69.93%
Ltd.
| Hefei Changhong Meiling Life Appliances Co., | Related party payments |
4,394,963.87
Within 3months
9.49%
Marketing Co., Ltd
| Hefei Meiling Electric Appliances | Related party payments |
3,077,192.21 Over 3 years 6.64%Dai Tianlei
462,317.60
Within 3months
1.00%Li Di
| Petty cash |
| Petty cash |
350,711.37 Within 3 years 0.76%Total—40,684,009.38—
87.82%
(5) There are no receivables involving government subsidies
(6) There are no other receivables derecognized due to the transfer of financial assets.
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
(7) There are no other receivables and the amount of assets and liabilities formed by continued
involvement
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
3. Long-term equity investments
(1) Classification of long-term equity investments
Item
Ending balance Opening balanceBook balance Impairment loss Book value Book balance Impairment loss Book valueInvestment in subsidiaries:
Zhongke Meiling Cryogenic
Technology Co., Ltd.
42,652,000.00 42,652,000.00 42,652,000.00 42,652,000.00Mianyang Meiling Refrigeration Co.,Ltd.
95,000,000.00 95,000,000.00 95,000,000.00 95,000,000.00
Zhongke Meiling CryogenicHefei Meiling Electric Appliances
Marketing Co., Ltd
54,900,000.00 54,900,000.00 54,900,000.00 54,900,000.00Zhongshan Changhong Electric Co.,Ltd.
304,856,419.37 304,856,419.37 304,856,419.37 304,856,419.37
Hefei Meiling Electric AppliancesSichuan Changhong Air-conditioner
Co., Ltd.
955,600,437.79 955,600,437.79 955,600,437.79 955,600,437.79
| Sichuan Changhong Air-conditioner |
| Hefei Meiling Group Holdings |
Limited
113,630,000.00 113,630,000.00 113,630,000.00 113,630,000.00
Co., Ltd.
79,000,000.00 79,000,000.00 79,000,000.00 79,000,000.00
| Jiangxi Meiling Electric Appliance |
| Changhong Meiling Ridian |
Technology Co., Ltd.
91,082,111.12 91,082,111.12 91,082,111.12 91,082,111.12
Co., Ltd.
60,000,000.00 27,675,208.01 32,324,791.99 60,000,000.00 27,675,208.01 32,324,791.99
| Meiling CANDY Washing Machine |
| Hefei Meiling Wulian Technology |
Co., Ltd
6,000,000.00 6,000,000.00 6,000,000.00 6,000,000.00CH-Meiling.International(Philippines) Inc.
6,889,100.00 6,889,100.00 6,889,100.00 6,889,100.00
Appliances Co., Ltd.
35,000,000.00 35,000,000.00Investment in associates:
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2021to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
Item
Ending balance Opening balanceBook balance Impairment loss Book value Book balance Impairment loss Book value
Hefei Xingmei Assets Management
Co., Ltd.
6,359,250.95 6,359,250.95 6,826,274.99 6,826,274.99
| Hefei Xingmei Assets Management |
| Sichuan Zhiyijia Network |
Technology Co., Ltd.
30,776,659.24 30,776,659.24 45,354,700.69 45,354,700.69Total 1,881,745,978.47 27,675,208.01 1,854,070,770.46 1,861,791,043.96 27,675,208.01 1,834,115,835.95
(2) Investment in subsidiaries
Invested enterprise Opening balance
Increased inCurrent Period
Decreased inCurrent Period
Ending balance
Provision for impairment
losses in the Period
Ending balance of
impairment
Technology Co., Ltd.
42,652,000.00 42,652,000.00
| Zhongke Meiling Cryogenic |
| Mianyang Meiling Refrigeration Co., |
Ltd.
95,000,000.00 95,000,000.00
Marketing Co., Ltd
54,900,000.00 54,900,000.00
| Hefei Meiling Electric Appliances |
| Zhongshan Changhong Electric Co., |
Ltd.
304,856,419.37 304,856,419.37
Co., Ltd.
955,600,437.79 955,600,437.79Hefei Meiling Group Holdings Limited 113,630,000.00 113,630,000.00Jiangxi Meiling Electric Appliance Co.,Ltd.
79,000,000.00 79,000,000.00
Sichuan Changhong Air-conditionerChanghong Meiling Ridian Technology
Co., Ltd.
91,082,111.12 91,082,111.12
| Changhong Meiling Ridian Technology |
| Hefei Changhong Meiling Life |
Appliances Co., Ltd.
35,000,000.00 35,000,000.00
Co., Ltd.
60,000,000.00 60,000,000.00 27,675,208.01Hefei Meiling Wulian Technology Co.,Ltd
6,000,000.00 6,000,000.00
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
Invested enterprise Opening balance
Increased inCurrent Period
Decreased inCurrent Period
Ending balance
Provision for impairmentlosses in the Period
Ending balance of
impairment
CH-Meiling.International (Philippines)
Inc.
6,889,100.00 6,889,100.00Total 1,809,610,068.28 35,000,000.00 1,844,610,068.28 27,675,208.01
(3) Investment in associates
Invested enterprise Opening balance
Changes in Current Period
Ending balance
Endingbalance ofimpairmentAdditionalInvestment
NegativeInvestment
Investment incomerecognized under
equity
Adjustment
for othercomprehensive
income
Otherequitychange
Cash dividend
or profitannounced to
issued
Provision forimpairment
loss
Other
CH-Meiling.International (Philippines)Hefei Xingmei Assets Management Co.,
Ltd.
6,826,274.99 -467,024.04
| Hefei Xingmei Assets Management Co., |
6,359,250.95
Sichuan Zhiyijia Network Technology Co.,Ltd.
45,354,700.69 -14,578,041.45
30,776,659.24
Total 52,180,975.68 -15,045,065.49
37,135,910.19
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
4. Operation income, operation cost
(1) Operation income and operation cost
Item
Current Period Last PeriodIncome Cost Income CostMain business3,102,350,117.09
2,860,557,418.342,453,463,713.88
2,260,946,436.99Other business
| 873,401,787.20 | 841,056,783.21 |
760,500,119.30
761,172,953.16Total
3,975,751,904.29
3,701,614,201.55
3,213,963,833.18
3,022,119,390.15
(2) Main business - Classified according to product
Product
Current Period Last PeriodOperation income Operation cost Operation income Operation costRefrigerator,freezer
2,809,476,859.57
2,589,201,634.89
2,201,687,822.75 2,028,605,037.68Washing machine232,248,515.69
216,526,918.33102,710,982.12 103,454,823.52
bathroom
| Small household appliances and kitchen and | 55,241,125.67 | 49,594,600.28 |
146,212,337.07 126,125,131.02Other
5,383,616.16
5,234,264.84
2,852,571.94 2,761,444.77Total
3,102,350,117.09
2,860,557,418.34
2,453,463,713.88 2,260,946,436.99
(3) Main business - Classified according to region
Region
Current Period Last PeriodOperation income Operation cost Operation income Operation costDomestic
1,756,300,378.04
| 1,756,300,378.04 | 1,652,622,816.92 |
1,322,226,066.74 1,332,014,226.07Overseas
1,346,049,739.051,207,934,601.42
1,131,237,647.14 928,932,210.92Total
| 3,102,350,117.09 | 2,860,557,418.34 |
2,453,463,713.88 2,260,946,436.99
Top five clients in sales revenue amounted as 1,692,183,177.25 yuan, a 42.56% in total operationincome.
5. Investment income
Item
Current Period Last PeriodLong-term equity investment income by cost method 2,754,000.00 69,912,000.00Long-term equity investment income by equity method -15,045,065.49 2,738,300.44Investment income obtained from disposal of Trading financial assets
46,948,848.62 3,755,039.20Income from financial products 2,754,190.61
1,432,328.96
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2021 to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
Item
Current Period Last PeriodTotal 37,411,973.74 77,837,668.60
XVIII. Approval of financial statementThe financial statement has already been approved from the board of directors of the Company forreporting dated 16 August 2021.
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2021to 30 June 2021(Unless other wise specified, RMB for record in the Statement)
Supplementary information for financial statement
1. Non-recurring gains and losses for this period
Item Current Period NoteGains and losses from disposal of non-current assets
-736,583.34Governmental subsidy reckoned into current gains/losses (notincluding the subsidy enjoyed in quota or ration according to nationalstandards, which are closely relevant to enterprise’s business)
54,702,099.76Losses/gains from changes of fair values occurred in holding tradingfinancial assets and trading financial liabilities, and investment income
obtaining from the disposal of trading financial assets, trading
financial liability and financial assets available-for-
| sale, excluded |
effective hedging business relevant with normal operations of theCompany
58,849,862.38
Reversal of the account receivable depreciation reserves subject toseparate impairment test
1,228,611.25Other non-operating income and expenses other than the above
5,629,332.53Subtotal
119,673,322.58Less: impact on income tax
17,645,671.62Impact on minority shareholders’ equity (post-tax)
1,317,724.41Total
100,709,926.55 —
2. Return on equity and earnings per share
Profit during the report period
equity
| Weighted average return on | Earnings per share/EPS (RMB/Share) | ||
| Basic EPS | Diluted EPS | ||
| Net profit attributable to ordinary | |||
shareholders of the parent company
| 0.76% | 0.0356 | 0.0356 | |
| Net profit attributable to ordinary |
shareholders of the parent companyafter deduction of the non-recurringgains/losses
| -1.31% | -0.0608 | -0.0608 |
Section XI. Documents available for Reference
I. Text of the Semi-Annual Report carrying the signature of the Chairman;II. Financial statement carrying the signatures and seals of the Chairman, principal of the accounting works andperson in charge of accounting organ;III. Original documents of the Company and manuscripts of public notices that disclosed in the website designatedby CSRC in the report period;The aforesaid documents are all available at headquarter of the Company. The Company would provide themtimely when CSRC and Shenzhen Stock Exchange require or the shareholders need consultation according to theregulations and Articles of Association.
Chairman: Wu DinggangChanghong Meiling Co., Ltd.
18 August 2021