HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
HEFEI MEILING CO., LTD.
Semi-Annual Report 2017
August 2017
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
Section I. Important Notice, Contents and Paraphrase
Board of Directors, Supervisory Committee, all directors, supervisors and senior executives of
Hefei Meiling Co., Ltd. (hereinafter referred to as the Company) hereby confirm that there are no
any fictitious statements, misleading statements, or important omissions carried in this report, and
shall take all responsibilities, individual and/or joint, for the reality, accuracy and completion of the
whole contents.
Mr. Li Wei, person in charge of the Company, Mr. Zhang Xiaolong, person in change of
accounting work and Mr. Luo Bo, person in charger of accounting organ (accountant in charge)
hereby confirm that the Financial Report of 2017 Semi-Annual Report is authentic, accurate and
complete.
The Company did not have directors, supervisors and senior executives of the Company could
not guarantee the reality, accuracy and completion of the whole contents or have objections.
All the directors attended the board meeting on deliberating the Report on site and by
communication.
Modified audit opinions notes
□ Applicable √ Not applicable
The financial report of 2017 semi-annual report has not been audited by CPA
Risk warning of 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 a substantial commitment for investors, investors and the person concerned should
maintain adequate risk awareness, furthermore, differences between the plans, forecast and
commitments should be comprehended. Investors 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 risk factors.
More details about the possible risks and countermeasures in the operation of the Company are
described in the report ―X. Risks and countermeasures‖ of ―Section IV Discussion and Analysis of
the Operation‖, investors are advised to read the relevant content.
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
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 2017 that appointed by
the Company. All public information under the name of the Company disclosed on the above said
media and website shall prevail, and investors are advised to exercise caution.
Does the Company need to comply with disclosure requirements of the special industry: No
Profit 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 and senior executives of the Company respectively signed Written Confirmation
Opinions for 2017 Semi-Annual Report.
Supervisory Committee of the Company formed Written Examination Opinions for 2017
Semi-Annual Report.
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
Contents
Section I. Important Notice, Contents and Paraphrase .......................................................... 1
Section II Company Profile and Main Finnaical Indexes....................................................... 5
Section III Summary of Company Business ............................................................................ 9
Section IV Discussion and Analysis of the Operation ........................................................... 14
Section V. Important Events .................................................................................................... 41
Section VI. Changes in Shares and Particulars about Shareholders ................................... 81
Section VII. Preferred Stock .................................................................................................... 88
Section VIII. Particular about Directors, Supervisors and Senior Executives ................... 89
Section IX Corporate Bond ..................................................................................................... 91
Section X. Financial Report ..................................................................................................... 92
Section XI Documents available for Reference.................................................................... 233
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
Paraphrase
Items Refers to Contents
Company, the Company or Meiling
Refers to HEFEI MEILING CO., LTD
Electric
Sichuan Changhong or controlling
Refers to Sichuan Changhong Electric Co., Ltd.
shareholder
Changhong Group Refers to Sichuan Changhong Electronics Holding Group Co., Ltd.
Hong Kong Changhong Refers to CHANGHONG (HK) TRADING LIMITED
Meiling Group Refers to Hefei Meiling Group Holdings Limited
Industry Investment Group Refers to Hefei Industry Investment Holding (Group) Co., Ltd.
Shine Wing Refers to Shine Wing Certified Public Accountants (LLP)
Changhong Air-conditioner Refers to Sichuan Changhong Air-conditioner Co., Ltd.
Zhongke Meiling Refers to Zhongke Meiling Cryogenic Technology Co., Ltd.
Jiangxi Meiling Refers to Jiangxi Meiling Electric Appliance Co., Ltd.
Changhong Ridian Refers to Guangdong Changhong Ridian Technology Co., Ltd.
Zhongshan Changhong Refers to Zhongshan Changhong Electric Co., LTD
Changmei Technology Refers to Changmei Technology Co., Ltd.
Huayi Compressor Refers to Huayi Compressor Co., Ltd.
Meiling CANDY Refers to Meiling CANDY Washing Machine Co., Ltd.
Candy Group Refers to Candy Hoover Group S.r.l.
CSRC Refers to China Securities Regulatory Commission
China Securities Regulatory Commission, Anhui Province
Anhui Securities Bureau Refers to
Securities Regulatory Bureau
SSE Refers to Shenzhen Stock Exchange
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
Section II Company Profile and Main Finnaical Indexes
I. Company profile
MEILINGDIANQI,
Short form of the stock Stock code 000521, 200521
WANMEILING-B
Short form of the Stock after changed (if
N/A
applicable)
Stock exchange for listing Shenzhen Stock Exchange
Name of the Company (in Chinese) 合肥美菱股份有限公司
Short form of the Company (in Chinese) 美菱电器
Foreign name of the Company (if applicable) HEFEI MEILING CO.,LTD.
Abbr. of English name of the Company (if
HFML
applicable)
Legal representative Li Wei
II. Person/Way to contact
Secretary of the Board Rep. of security affairs
Name Li Xia Zhu Wenjie
No. 2163, Lianhua Road, Economic and No. 2163, Lianhua Road, Economic and
Contact add.
Technology Development Zone, Hefei Technology Development Zone, Hefei
Tel. 0551-62219021 0551-62219021
Fax. 0551-62219021 0551-62219021
e-mail lixia@meiling.com wenjie.zhu@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 in reporting period or not
□ Applicable √ Not applicable
Registrations address, offices address and codes as well as website and email of the Company
has no change in reporting period, found more details in Annual Report 2016.
2. Information disclosure and preparation place
Whether information disclosure and preparation place changed in reporting period or not
□ Applicable √ Not applicable
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
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 Annual Report 2016.
3. Other relevant information
Whether other relevant information has changed in reporting period or not
√Applicable □Not applicable
Being deliberated and approved by 33rd meeting of 8th BOD held on 21 July 2017, Mr. Li Wei
was selected as chairman of the 8th BOD of the Company with office term same as the BOD’s. And
according to the regulation of Article 8 of Article of Association, chairman of the Company is the
legal representative of the Company.
IV. Main accounting data and financial indexes
Whether it has retroactive adjustment or re-statement on previous accounting data or not
□Yes √No
Increase/decrease in
Current period Same period of last year
this report y-o-y
Operating income (RMB) 8,517,794,193.10 6,866,631,262.68 24.05%
Net profit attributable to shareholders
92,075,039.77 109,992,701.28 -16.29%
of the listed company(RMB)
Net profit attributable to shareholders
of the listed company after deducting 66,905,338.98 90,801,654.71 -26.32%
non-recurring gains and losses(RMB)
Net cash flow arising from operating
484,230,697.91 871,689,504.89 -44.45%
activities(RMB)
Basic earnings per share (RMB/Share) 0.0881 0.1440 -38.82%
Diluted earnings per share
0.0881 0.1440 -38.82%
(RMB/Share)
1.33percent point
Weighted average ROE 1.79% 3.12%
down
Increase/decrease in
End of current period End of last period this report-end over
that of last period-end
Total assets (RMB) 16,689,509,751.32 12,507,567,310.84 33.44%
Net assets attributable to shareholder
5,119,376,181.33 5,095,160,291.91 0.48%
of listed company (RMB)
Note: the earnings per share calculated at same period of last year were based on total shares of 763,739,205,
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
and the Company offering 280,858,676 common shares (A-stock) by privately placement in October 2016, total
shares capital of the Company goes to 1,044,597,881 shares. Therefore, the earnings per shares calculated in the
period were based on total shares of 1,044,597,881.
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 reporting period.
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 Net assets attributable to shareholders of
of listed company listed company
Current Period Last Period Period-end Period-begin
Chinese GAAP 92,075,039.77 109,992,701.28 5,119,376,181.33 5,095,160,291.91
Items and amount adjusted by foreign accounting rules
Foreign accounting rules 92,075,039.77 109,992,701.28 5,119,376,181.33 5,095,160,291.91
The Company had no difference of the net profit or net assets disclosed in financial report,
under either foreign accounting rules or Chinese GAAP (Generally Accepted Accounting Principles)
in the period.
3. Reasons for the differences of accounting data under accounting rules in and out of
China
√ Applicable □Not applicable
The ―Notice of Relevant Issues of Audit for Company with Domestically Foreign Shares
Offering‖ was issued from CSRC dated 12 September 2007, since the day issuing, cancel the
previous ―dual audit‖ requirement for companies who offering domestically listed foreign shares
(B-share enterprise) while engaging securities practice qualification CPA for auditing. The
Company did not compile financial report under foreign accounting rules since 2007, the financial
report of the Company is complying on the ―Accounting Standard for Business Enterprise‖ in China,
and therefore, there are no differences of accounting data under accounting rules in and out of
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
China at period-end.
VI. Items and amounts of extraordinary profit (gains)/loss
√Applicable □ Not applicable
In RMB
Item Amount Note
Found more in
Gains/losses from the disposal of non-current asset
―Non-operating income and
(including the write-off that accrued for impairment of -11,095,591.69
expenditure‖, ―Investment
assets)
income‖
Governmental subsidy reckoned into current
gains/losses (not including the subsidy enjoyed in quota Found more in
22,490,062.54
or ration according to national standards, which are ―Non-operating income‖
closely relevant to enterprise’s business)
Held transaction financial asset, gains/losses of changes
of fair values from transaction financial liabilities, and
investment gains from disposal of transaction financial
Found more in ―Gains from
asset, transaction financial liabilities and financial asset -10,359,085.30
changes of fair value‖
available for sales, exclude the effective hedging
business relevant with normal operations of the
Company
Found more in
Other non-operating income and expenditure except for
643,883.35 ―Non-operating income and
the aforementioned items
expenditure‖
Gain/losses items qualified definition of the Found more in
26,817,170.85
non-recurring gains/losses ―Investment income‖
Less: impact on income tax 3,129,349.31 --
Impact on minority shareholders’ equity (post-tax) 197,389.65 --
Total 25,169,700.79 --
Concerning the extraordinary profit (gain)/loss defined by Q&A Announcement No.1 on
Information Disclosure for Companies Offering Their Securities to the Public --- Extraordinary
Profit/loss, and the items defined as recurring profit (gain)/loss according to the lists of
extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for
Companies Offering Their Securities to the Public --- Extraordinary Profit/loss, explain reasons
□Applicable √Not applicable
The Company has no items defined as recurring profit (gain)/loss according to the lists of
extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for
Companies Offering Their Securities to the Public --- Extraordinary Profit/loss, in the period
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
Section III Summary of Company Business
I. Main businesses of the Company in the reporting period
Does the Company need to comply with disclosure requirements of the special industry:No
The Company is one of China's major electric appliance manufacturers, possesses four major
domestic manufacturing bases in Hefei, Mianyang, Jingdezhen and Zhongshan, and two overseas
manufacturing bases in Indonesia and Pakistan, covering the full product line including ice,
washing, air, kitchen and bath, small household appliances and others, at the same time, the
company enters into the fresh e-business, bio-medical and other new industrial fields.
Over the past 30 years, the company has always been adhering to the \"independent innovation,
created in China\", elaborately building the core competitiveness of enterprises by technological
innovation and product innovation. The company has set up the first RoHS public testing center in
Anhui Province, the state-level enterprise technology center and the top-end R & D team, so that
Meiling can continue to achieve breakthrough results in the variable frequency, energy saving,
frost-free, cryogenic, intelligence and other fields.
In recent years, with the rapid development of Internet, cloud computing, big data and a new
generation of information technology, the intelligence of home appliance industry has become the
future development direction. Faced with the new changes in the industry development, the
company puts forward the \"Double Three One Core\" strategy; \"One Core\" is intelligence. Under the
guidance of \"intelligent\" strategy, in 2014, the company released CHiQ refrigerator with \"cloud
image recognition\" as the core and CHiQ air conditioner based on \"human state perception\"
technology; in 2015, the company began to implement the \"Intelligent Life Project\" to explore new
path for the enterprise development; in 2016, the company launched the first \"Intelligent Home
Eco-circle Plan\" in the global white goods industry and brought out the world's first
temperature-zone free custom-made Internet of Things refrigerator (the second generation ―Space
Intelligence\" CHiQ refrigerator) and the world's first user free custom-made intelligent air steward
(CHiQ intelligent air steward) to accelerate the implementation of intelligent strategy. At the same
time, the company successfully raised 1.57 billion Yuan of funds in the capital market by the
non-public offering of shares which were mainly used in three key platforms including Meiling
intelligent manufacturing, intelligent research and development and intelligent life. Three platforms
integrate with each other and work together to boost Meiling to achieve the transformation of
―intelligent gene‖ from the most basic level, and provide strong supports for the company’s
development and intelligent transformation. In future, with the help of ―Intelligent Home Eco-circle
Plan‖, Meiling will really transform from the integration of single industry chain to the integration
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
of eco-development. At present, the company has basically completed the industrial layout for
comprehensive white goods. With the landing of a series of CHiQ intelligent products, continuous
rising proportion of variable frequency products, diversified layout of product lines, and
construction of fresh business platform in Meiling intelligent life O2O community, the company is
gradually improving the home Internet layout, accelerating the intelligent process of household
appliances, forming the \"hardware + service\" dual growth engine, driving the transformation and
upgrading of the company’s profit model, exploring new value-added pattern for the home
appliance enterprise services, meeting new pattern of industry competition, and achieving its own
sustained and stable development.
In reporting period, main income of the Company coming from refrigerator (freezer), air
conditioner, washing machine, small home appliances and kitchen & toilet products etc., total
amounting to 8,133.4198 million Yuan, a 95.49% of the operating income
II. Major changes in main assets
1. Major changes in main assets
Major assets Note of major changes
Equity assets No major changes.
Fixed assets No major changes.
Intangible assets No major changes.
The parent company’s intelligent manufacturing project and relocation
Construction in progress
expansion of Zhongke Meiling
2. Main overseas assets
√ Applicable □Not applicable
Whether
Foreign assets
Reason for Operati exist
Content of Control measure to ensure accounted for
the Asset size Location on Income significant
assets the security of assets net assets of
formation mode impairme
the Company
nt risk
Details of risks control
measures have been
60% equity
disclosed by the Company
of Investment
US$ 7.44 by way of announcement
Changhong establishme Pakistan Sales 943,832.83 0.91% N
million on appointed media (No.
Ruba Trading nt
2011-028, No. 2011-032,
Company
No. 2014-023, No.
2014-026, No. 2016-027and
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
No. 2016-032) on 28 May
2011, 19 April 2014 and 25
March 2016 respectively
Details of risks control
measures have been
40% equity
disclosed by the Company
of
Investment by way of announcement
Changhong US$ 6.524 Manuf
establishme Pakistan on appointed media (No. -253,047.79 0.57% N
Ruba Electric million acture
nt 2011-028, No. 2011-032,
Company(Pri
No. 2014-023 and No.
vate)Ltd.
2014-026) on 28 May 2011
and 19 April 2014
100% equity Details of risks control
of KELAP measures have been
CHANGHO A disclosed by the Company
Investment
NG US$ 6 GADIN by way of announcement
establishme Sales -2,704,602.28 0.32% N
MEILING million G, JKT, on appointed media (No.
nt
ELECTRIC Indonesi 2016-027 and No.
INDONESIA a 2016-032) on 25 March
. PT
Other notes N/A
III. Core Competitiveness Analysis
Does the Company need to comply with disclosure requirements of the special industry: No
1. Brand capacity
The Company is one of the famous home appliances manufacturers in the PRC, owns several
product lines such as refrigerator, freezing box and air conditioner. Meiling trademark is listed as
one of the most valuable brands in China and is the well-known trademarks national-wide. The
trademark ―Athena‖ in refrigerator, freezer (services) of the Company was recognized as the
famous mark in Anhui Province. The Company released CHiQ intelligent first and second
generation refrigerator, AC and intelligent air steward in succession since 2014. And creating a
high-end intelligent brand image around the plan of ―Wisdom Home Ecosystem‖ for opening a
white intelligence era. While in order to enhance the brand image and further expand the market
influence of the brand, the company held a conference for \"New LOGO release and offline of the
10th million set of frequency conversion products\" in October 2015, comprehensively updated
LOGO \" \", and launched the new brand proposition of \"Meiling, let the good come\".
Along with the release of new LOGO, Meiling will also implement a brand strategy of \"Good
Trilogy\", including the direct sensory experience of ―experience the good\", the spirit soul
enjoyment of ―enjoy the good‖, and the lifestyle faith of ―believe in the good‖.
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
By our efforts to rebuild our brand, Meiling will realize a young, international and professional
brand image. Through gradual construction of the ideas of Wonderful Start Point, Wonderful Life
Circle and Wonderful Ecology Circle, Meiling has become a people-oriented artist specializing in
white appliances, a smarter scientific expert and a more reliable house keeper.
2. Product capacity
In more than 30 years, the company has been focusing on the refrigeration industry, has
developed a variety of different types of refrigerator products that lead the industry development
trend, including two-door and multi-door Athena series of high-end refrigerators, top-level
energy-saving refrigerators with daily power consumption of only 0.23 degrees, CHiQ refrigerator
taking \"cloud image recognition 'technology as the core, and 2nd generation-CHiQ refrigeration,
which can realized the space change along with the food requirements with human-oriented
characteristics.
The Company owned advanced development and quality assurance systems, and received
certification of ISO9001, ISO14001 and OHSAS18001 from domestic and overseas authorities. The
products of the Company have good quality and reliable capacities. As for technology development,
the Company owned national technology centers, and advanced core technologies in energy-saving,
air cooling, intelligence and copious cooling. As for product development, combine with technology
development trend and characteristics of demand from upgrades in consumers, the Company, put
more efforts on products planning. In 2017, continues to expand the development of medium&high
quality products, including CHiQ intellectual products, inverter products, air patenting, multi zone
and large volume, the product has obvious upgrade in structures.
As for the air conditioning products, the Company adheres to the technical strategy by taking
intelligence and variable frequency as the core, intensively studies the human state perception
technology and intelligent interactive technology, focuses on completing the research and
development of intelligent voice recognition technology and productization, successively releases
the first generation of CHiQ air conditioner based on \"human state perception\" technology and
CHiQ intelligent air steward that can automatically change air.
The Company continues to adhere to the intelligent and variable frequency products, and
promote the Company's products to continuously transform to high end by boosting the follow-up
research and development, promotion and technology updates of intelligent and variable frequency
products. Meanwhile, the company improves the manufacturing efficiency and product quality,
reduces product costs and enhances product competitiveness by comprehensively implementing
intelligent upgrading and rebuilding to all production lines. In addition, the company improves the
home appliance product line through the layout of kitchen and bath and small household appliances
and has initially completed the layout for integrated white goods. Meanwhile, based on \"Intelligent
Home Eco-circle\" plan and taking the existing products as the core, the company will enhance the
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
R&D, manufacturing, sales and collaboration capabilities of integrated white goods, and provide
users with a set of intelligent white goods system solutions.
3. Operation capacity
The Company conducted benchmark management to improve its basic management level. In
specific, efficiency enhancement has been made in areas of personnel, money and materials, trying
to continuously enhance the internal management. A performance review and sharing system has
been established with clear target and quantity index based on performance and layered incentive
sharing system, thus to inspire the internal production capacity. Under the mainline of value chain
management, the Company continued to carry out value creation and improve its competitiveness.
Its ability to prevent risks has been also strengthened through continuous improvement of internal
control system.
4. Marketing ability
The Company has established a relatively complete sales network and service system, among
them, the domestic sales channels emphasizing online and offline collaboration and integration,
through the business operation mode system construction (target management, value chain
management, sales promotion, product mix and channel strategy, etc.) and promotion, the pace of
business in the period constantly tends to be benign, has a balanced development in chain,
wholesale, e-commerce and other channels, and the product competitiveness has been improved; the
overseas market has been strengthened by increasing the investments in overseas marketing
organizations, research and development bases and production bases, we cooperate with world-wide
well-known appliance brand dealer and distributor, optimized client’s structure and enhance product
structure, the Company has been actively develop the overseas market, and the products have been
exported to more than 130 countries and regions.
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
Section IV Discussion and Analysis of the Operation
1. Summary
In 2017, under the international macro-environment of ups and downs in global economic
recovery and global overproduction, China's economic upward momentum and downward pressure
are still in a weak equilibrium state, and there are still many uncertainties in economic
development. In this context, in the first half of 2017, the domestic appliance industry has been
facing many factors, such as cost increase in raw materials, saturation in terminal market,
increased regulation in real estate, and upgrading of energy efficiency standard, etc.. In the new
normal of home appliances, the competition in home-appliance industry becomes increasingly
fierce; innovation and breakthrough becomes the key to make the company bigger and stronger.
In the first half of 2017, under the strategic guidance of ―Meiling Dream‖ and ―Double Three
One Core‖, the company insisted on the operating principle of ―product leading, marketing force,
manufacturing breakthrough, mechanism protection‖, overcame the negative factors such as weak
increase in macro economy and continuous decline in industry market with the joint efforts of all
staff, the domestic refrigerator sales outperformed the industry market, the e-commerce business
greatly increased, the market position of export refrigerators (freezers) has been consolidated; air
conditioning industry had a rapid growth; washing machine rapidly developed; kitchen and bath
and small appliances also had a rapid growth. In first half of 2017, the Company has achieved
operating income of RMB 8.518 billion, an increase of 24.05% on a year-on-year basis; net profit
attributable to the parent company of RMB 92.0750 million, a decrease of 16.29% on a
year-on-year basis.
II. Main Business Analysis
(I) Overview
Shows no difference with the summary disclosed in Report of the Board of Director
□Yes √No
1. Summary
In first half of 2017, refrigerator and freezer business achieved revenue of approximately
RMB 3.712 billion,5.71% increased on a y-o-y basis; air-conditioning business achieved revenue
of approximately RMB 3.831 billion,48.55% up y-o-y; washing machine business achieve revenue
around RMB 0.227 billion, with year-on-year growth of 5.93 %; other business of small home
appliance and kitchen & toilet products have revenue approximately as RMB 0.363 billion with
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
9.94% up y-o-y. At the same time, revenue from exportation gains RMB 2.12 billion, a y-o-y
growth of 29.63%.
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 2017 operating
principles, the Company has deployed the annual business plan, arranged the production and
management, and carried out the following activities:
(1) Product leading:
During the reporting period, the company continued to focus on ―intelligent and variable
frequency strategy‖ and carry out the product upgrading, in the first half year, the sales of
intelligent refrigerator increased by 1.1 percent point compared with the same period of last year,
and the sales of inverter refrigerator increased by 16.8 percent point compared with the same
period of last year, both achieved the expected goal.
In technical research, the company adhered to the fundamental research upgrade of core
technology, maintained the existing technological superiority, expanded the innovation and
upgrading in technology field, broke through the differentiation, and led the industry benchmark.
Among them: in the inverter core technology, further optimized and upgraded, reduced the cost of
inverter technology, enhanced product competitiveness, and maintained the industry advanced
level; in the simulation supporting technology, obviously promoted the product performance by
CFD air duct design capacity building; in the energy-saving key technology, maintained the
optimal design capabilities in refrigeration system, focused on the new national standard to carry
out the research on ―integrated efficiency optimization program of refrigeration system‖, and
achieved fruitful results in integration research on CFD technology and evaporator refrigeration
system, and effectively promoted the research and development of low-cost new energy-saving
refrigerator.
(2) Marketing force:
During the reporting period, the company's domestic refrigerator and washing machine sales
outperformed the industry market, the market position has been further consolidated and enhanced.
From the offline market sales, CMM’s data showed the retail sales of refrigerator industry
declined by 1.23% on a year-on-year basis, but the retail sales of the company's refrigerator rose
by 2.17% on a year-on-year basis; the retail sales of air-conditioning industry rose by 14.75% on a
year-on-year basis, while the retail sales of the company's air-conditioning rose by 8.86% on a
year-on-year basis; the retail sales of washing machine industry rose by 0.25% on a year-on-year
basis, while the retail sales of the company's washing machine greatly rose by 15.45% on a
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
year-on-year basis.
From the online sales, AVC (All View Cloud) data showed that the company’s online
refrigerator and air conditioning sales have further enlarged the results. Among them, the retail
sales of refrigerator industry rose by 64.04% on a year-on-year basis, and the retail sales of the
company’s refrigerator rose by 93.05% on a year-on-year basis; the retail sales of air-conditioning
industry rose by 128.79% on a year-on-year basis, while the retail sales of the company’s
air-conditioning rose by 91.95% on a year-on-year basis.
As for the export business, the company's refrigerator and air-conditioning product lines have
continued to maintain a rapid growth like a few years ago. According to the customs data and
statistics, the amount of exports of refrigerator industry rose by 19.75% on a year-on-year basis,
and the company's amount of exports rose by 17.45% on a year-on-year basis; the amount of
exports of air conditioning industry rose by 2.23% on a year-on-year basis, while the amount of
exports of the company's air conditioning rose by 15.87% on a year-on-year basis, and achieved
good development.
(3) Manufacturing breakthrough:
During the reporting period, the intelligent manufacturing, efficient production line project in
Jiangxi Province, large refrigerator efficiency enhancing project, recruit upgrade projects and other
projects advanced in an orderly manner, which overall pulled the improvement of manufacturing
efficiency.
(4) Mechanism protection:
During the reporting period, the company further implemented the incentive mechanism to
activate the team, constantly explored the team potential and enhanced the competitiveness of the
company by implementing the medium and long term performance incentive plan and
continuously promoting the operation activation plan and other multilevel, multiform incentive
sharing.
In the talent mechanism, the company continued to promote the 100 people echelon project to
select and train all kinds of key employees; in the innovation mechanism, brought the innovative
spirit and fault-tolerant mechanism into the relevant management system; in the accountability
mechanism, confirmed the main idea of accountability system construction, sorted out the key
and core system of main business process, and defined the accountability subject and assess the
specific objectives; in the benchmarking mechanism, 32 projects have been proposed and
promoted after assessment by establishing working mechanism during the reporting period.
(II) Year-on-year changes of main financial data
In RMB
Current period Same period of last Y-o-y Reasons for changes
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
year increase/d
ecrease
Operation revenue 8,517,794,193.10 6,866,631,262.68 24.05% --
Operation cost 6,996,226,048.85 5,432,461,687.10 28.79% --
Sales expenses 1,140,172,032.08 1,075,647,750.60 6.00% --
Administrative
222,533,091.74 175,964,420.95 26.46% --
expenses
Financial cost -33,454,482.67 -39,699,342.16 15.73% --
Taxable income declined on a y-o-y basis in the
Income tax expense 9,439,557.86 18,816,185.98 -49.83%
period
R&D expenses 184,681,025.99 207,876,418.69 -11.16% --
Net cash flow
Commodity purchased increased and note payable on
arising from 484,230,697.91 871,689,504.89 -44.45%
due on a y-o-y growth in the period
operation activities
Net cash flow
The principal paid for entrust financing increased in
arising from -564,891,050.65 374,877,700.49 -250.69%
the period on a y-o-y basis
investment activities
Net cash flow
Short-term loans from parent company increased on a
arising from 911,251,695.82 682,926,101.22 33.43%
y-o-y basis
financing activities
Net increase of cash Same reason as ―Net cash flow arising from
823,360,098.63 1,941,723,175.47 -57.60%
and cash equivalent investment activities‖
The note receivable did not expire temporarily at
Note receivable 2,511,715,429.41 1,421,429,723.73 76.70%
period-end increased
The credit sales increased on a y-o-y basis in the
Account receivables 2,048,332,541.11 1,118,960,552.49 83.06%
period
The account paid in advance at period, for bidding
Account paid in the plants and office and land use right under the
289,836,060.91 134,706,488.38 115.16%
advance name of Anhui Dongwei Solar Energy Technology
Co., Ltd.
The export rebates increased without received in the
Other receivables 68,537,511.44 39,553,919.44 73.28%
period and the petty cash increased in the period
The inventory increased with the y-o-y growth of
Inventory 2,582,538,614.47 1,974,526,734.86 30.79%
sales volume
The long-term fixed time deposit from subsidiary
Non-current assets
46,133,664.00 12,625,340.00 265.41% Zhongshan Changhong, were re-classified to
due within one year
non-current assets due within one year at period-end
Financial assets
31,000,000.00 17,000,000.00 82.35% More investment for Hongyun Fund in the Period
available for sale
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
The parent company’s intelligent manufacturing
Construction in
148,626,411.17 107,037,409.95 38.85% project and construction of relocation and expansion
progress
revamp from Zhongke Meiling
Development More investment for research and development in the
73,961,222.33 45,023,750.60 64.27%
expenditure period
Long-term
The long-term assets to be amortized increased from
amortization 2,583,106.23 1,132,075.48 128.17%
subsidiary Sichuan Air-Conditioner in the period
expenses
Other non-current
- 34,615,630.00 -100.00% Same as ―Non-current assets due within one year‖
assets
Parent company’s short-term loans increased in the
Short-term loans 1,432,622,701.07 288,343,724.73 396.85%
period
Financial liability
measured by fair
value and whose Changes of fair value of forward foreign exchange
9,671,394.08 559,249.58 1629.35%
change is recorded contract in the period
in current gains and
losses
The note payable did not expire temporarily at
Note payable 4,573,857,981.57 2,635,051,740.30 73.58%
period-end increased
Material purchasing increased with the growth of
Account payable 3,168,053,679.32 2,331,899,310.82 35.86%
procurement scale in the period
The salary and year-end bonus and performance
Wages payable 103,531,061.56 189,592,039.00 -45.39% incentive fund, which were accrual last year, are paid
in the period
Payable VAT at period-end increased over that of
Taxes payable 85,377,009.73 59,849,032.13 42.65%
year-beginning for the selling seasons
Interest of loan payable are paid by parent company
Interest payable 708,602.61 1,617,352.01 -56.19%
in the period
Dividend issued in the period, and some of the
Dividend payable 16,972,722.88 2,545,801.23 566.69%
shareholders are not withdrawing yet
Other account Other payables which were not paid temporary
812,770,528.06 622,580,323.43 30.55%
payable increased at period-end
The long-term loans are due for payment, which were
Non-current liability
59,718,504.77 272,202,590.10 -78.06% re-classified as non-current liability due within one
due within one year
year
Parent company’s long-term loans increased in the
Long-term loans 253,460,000.00 38,908,788.00 551.42%
period
The government specific fund are paid by subsidiary
Special payable 980,000.00 1,400,000.00 -30.00%
Zhongshan Changhong, in line with the joint
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
development agreement, which are not accepted
temporary
Other
Changes of the foreign currency rates from overseas’
comprehensive 938,467.33 3,474,546.95 -72.99%
subsidiary
income
Same of the subsidiary earns in the period and
Minority interests 98,755,957.79 70,921,198.01 39.25%
purchasing minority from some of the subsidiaries
Changing income of Losses from fair value changes in forward foreign
-10,359,085.30 -1,278,570.21 -710.21%
fair value exchange contract
Income from entrust financing received in the period
Investment income 23,593,349.66 4,153,090.95 468.09%
increased on a y-o-y basis
Investment income
on affiliated
-3,226,328.17 -833,210.42 -287.22% Joint venture has a y-o-y losses in the period
company and joint
venture
Non-operating Losses from assets disposal for relocation from
11,455,300.63 1,818,874.18 529.80%
expenditure subsidiary Mianyan Refrigeration
Income of
non-current assets 11,359,875.16 1,545,129.64 635.21% Same as ―Non-operating expenditure‖
disposal
Minority
Some of the non-wholly-owned subsidiary earns on a
shareholders’ gains 6,019,661.62 -69,054.44 8817.27%
y-o-y basis in the period
and losses
(III)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
(IV) Constitution of main business
In RMB
Increase or Increase or Increase or
decrease of decrease of decrease of
Gross operating operating cost gross profit
Operating revenue Operating cost
profit ratio revenue over over same ratio over
same period of period of last same period
last year year of last year
According to industries
Manufacture of
household 8,133,419,814.85 6,646,020,504.49 18.29% 22.58% 27.16% -2.94%
appliances
According to products
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
Refrigerators,
3,712,357,454.31 3,021,413,721.30 18.61% 5.71% 14.39% -6.18%
freezers
Air conditioning 3,830,599,287.94 3,157,180,107.27 17.58% 48.55% 49.09% -0.30%
Washing machine 227,162,009.50 177,357,302.38 21.92% 5.93% 1.43% 3.45%
Small appliances
264,195,096.38 229,232,770.78 13.23% 37.13% 31.73% 3.55%
& kitchen & bath
Others 99,105,966.72 60,836,602.76 38.61% -28.08% -48.69% 24.65%
According to region
Domestic 6,013,436,261.57 4,647,630,149.87 22.71% 20.27% 23.50% -2.02%
Foreign 2,119,983,553.28 1,998,390,354.62 5.74% 29.63% 36.57% -4.78%
III. Analysis of the non-main business
√ Applicable □Not applicable
In RMB
Ratio in total
Amount Note Whether be sustainable
profit
Investment income 23,593,349.66 21.94% Income from financial services N
Loss from fair value changes of
Changes in fair
-10,359,085.30 9.63% the forward foreign exchange N
value
contract
Receivable bad debt accruals
Asset impairment 45,493,272.74 42.31% N
increased in the period
Non-operating Government grants received in the
23,491,147.85 21.85% N
income period
Losses from assets disposal for
Non-operating
11,455,300.63 10.65% relocation from subsidiary N
expense
Mianyan Refrigeration
IV. Assets and liability
1. Major changes of assets composition
In RMB
End of current period Same period of last year
Ratio in Ratio in Ratio
Notes of major changes
Amount total Amount total changes
assets assets
Total assets at period-end
Monetary fund 4,918,185,647.77 29.47% 4,136,998,121.62 35.19% -5.72%
increased on a y-o-y basis
Account 2,048,332,541.11 12.27% 1,950,050,884.81 16.59% -4.32% No major changes
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
receivable
Inventory 2,582,538,614.47 15.47% 1,591,370,410.84 13.54% 1.93% No major changes
Investment real
12,871,340.33 0.08% 13,679,922.44 0.12% -0.04% No major changes
estate
Long-term
equity 90,247,745.70 0.54% 78,801,651.30 0.67% -0.13% No major changes
investment
Fix assets 1,214,541,611.12 7.28% 1,250,350,428.82 10.64% -3.36% No major changes
Construction in
148,626,411.17 0.89% 67,818,577.71 0.58% 0.31% No major changes
progress
Short-term
1,432,622,701.07 8.58% 718,762,164.03 6.11% 2.47% No major changes
loans
Long-term
253,460,000.00 1.52% 50,290,088.80 0.43% 1.09% No major changes
loans
2. Assets and liability measured by fair value
√ Applicable □ Not applicable
In RMB
Accumulati Devaluatio Amount
Changes of fair
ve changes n of of Amount
Amount at the value Amount in the
Items of fair value withdrawi purchas of sale in
beginning period gains/losses in end of period
reckoned ng in the e in the the period
this period
into equity period period
Financial assets
1. Financial assets
measured by fair
value and whose
change is recorded in
12,060,213.30 -1,246,940.80 10,813,272.50
current gains and
losses(excluding
derivative financial
assets)
2. Derivative
financial assets
3. Financial assets
available for sale
Subtotal of financial
12,060,213.30 -1,246,940.80 10,813,272.50
assets
Investment real estate
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
Productive biological
asset
Other
Total 12,060,213.30 -1,246,940.80 10,813,272.50
Financial liabilities 559,249.58 9,112,144.50 9,671,394.08
Whether there have major changes on measurement attributes for main assets of the Company
in report period or not
□ Yes √No
3. 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 and guarantee
V. Investment
1. Overall situation
√ Applicable □ Not applicable
Investment in the same period of last
Investment in the reporting (RMB) Changes
year ( RMB)
199,413,900 140,650,000 41.78%
2. The major equity investment obtained in the reporting period
√ Applicable □ Not applicable
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
In RMB
Date of
Meth Capit Term Whet
Share Status as of Expect Current disclosure Index of disclosure
Name of od of Amount of al of Type of her
Principal business holdi Partners the balance ed investment (if (if applicable
investee invest investment sourc invest products litigat
ng sheet date return profit and loss
ment es ment ion applicable )
)
R&D, sales and after-sale
Meiling
services of washing Newl Contributes www.cninfo.com.cn
CANDY Owne Washing Not
machines; own and operate y Candy Hoover 20- 30 million Juchao Website:
Washing 90,000,000 60% d machine applica -56,041.83 N 2017-3-30
all types of goods and establ Group S.r.l year Yuan in the www.cninfo.com.cn(
Machine fund etc. ble
technology import & export ished period No.: 2017-010 )
Co., Ltd.
business
Manufacturing and sales of
the following:
air-conditioner, air cooler, air
purifier, heat pump, new
wind system equipment,
electric heater, electric fan,
Home
Zhongshan refrigerators and freezers, Newl Zhuhai Samyou www.cninfo.com.cn
Owne appliances Contributes Not
Hongyou water heating, water filter, y Environmental Long Juchao Website:
24,000,000 60% d as 0 Yuan in applica -- N 2017-3-14
Electric Co., humidifier, clothes dryer, establ Technology -term www.cninfo.com.cn(
fund air-conditi the period ble
Ltd. dehumidifier, air water ished Co., Ltd. No.: 2017-006 )
oner etc.
machine, electric fireplace,
kitchen appliance and tools
as well as refrigerating unit
and home appliances; sales
of electric raw/auxiliary
materials, electrical parts;
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
goods and technology import
& export business
Sichuan
Hongyun
Venture Equity
Investment
Management
Co., Ltd., State
Development &
Investment
Venture business: act on
Corp., Sichuan
behalf of institution or
Technology Contributes
individuals as other venture
Transfer Center, 14 million
firms in a venture business;
Sichuan Sichuan Yuan in the
investment advisory Capit www.cninfo.com.cn
Hongyun Owne Changhong period, Not
business; providing venture al 8- Not Juchao Website:
New – G IT 40,000,000 16% d Electric Co., invested 26 applica -- N 2015-08-12
management services for incre year applicable www.cninfo.com.cn(
Venture fund Ltd., Chengdu million ble
venture; participate in ment No.: 2015-035 )
Capital Fund Tianfu Yuan
establishing a venture
Innovation accumulativ
business and management
Equity ely.
consulting organ for the
Investment
venture
Fund Center
(Limited
Partner),
Sichuan
Changhong
Jiahua Digital
Technology
Co., Ltd.
Changmei Development, production Stock 46,320,000 92.64 Owne Management 20- Fresh food In reporting Not -450.13 N 2016-11-26 www.cninfo.com.cn
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
Technology and sales of computer rights %d team of year e-commer period, applica Juchao Website:
Co., Ltd. hardware & software, assig fund Changmei ce transfer ble www.cninfo.com.cn(
technology development, ning Technology 2.64% No.: 2016-068 )
production and sales of equity (not
internet of Things funded by
equipment, development and part of the
maintenance of E-commerce no-core
software, information employees),
service, technical transfer Contributes
and services of the internet, 528,000
domestic AD designing, Yuan in the
production, agencies and period, and
release, sales of prepackaged 18.528
food, dairy products, general million
merchandise, alcohol, Yuan funded
beverage and agricultural accumulativ
products, crop planting, ely
self-support goods and
technology import and
export business.(except
items prohibited or restricted
by laws and regulations)
Guangzhou
Commodity wholesale
Changhong
trading (except for the
Trade Co., Newl Contributes www.cninfo.com.cn
licensed commodities); Owne Not
Ltd. y Long Not one million Juchao Website:
goods import & export 1,000,000 100% d N/A applica -25,239.22 N 2016-11-26
Guangzhou establ -term applicable Yuan in the www.cninfo.com.cn(
business (exclusive fund ble
Changhong ished period No.: 2016-068 )
monopoly commodities);
Trade Co.,
technology import & export
Ltd.
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
Zhongshan
Hongling
Trade Newl Contributes www.cninfo.com.cn
Owne Not
Co.,Ltd. Domestic trading; goods and y Long Not 0.6 million Juchao Website:
1,000,000 100% d N/A applica -231,100.18 N 2016-11-26
Zhongshan technology import & export establ -term applicable Yuan in the www.cninfo.com.cn(
fund ble
Hongling ished period No.: 2016-068 )
Trade Co.,
Ltd.
Not
Total -- -- 202,320,000 -- -- -- -- -- -- applica -312,831.36 -- -- --
ble
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
3. The major non-equity investment doing in the reporting period
√ Applicable □ Not applicable
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
Industr
Accrued
y Accrued Reasons for
Investment Actual
Inves Fixed involve Realized not Reaching
Amount in Investment Capita
tment Invest d in Income up the Planned Disclosed Index (if
Project Name this Amount up l Project Anticipated Disclosed
Meth ments Invest to the End Schedule and any)
Reporting to the End Sourc Schedule Income Date (if any)
od or not ment of Reporting Anticipated
Period of Reporting e
Project Period Income
Period
s
The intelligent
production line
for one million
1 million sets of Home Project is
sets of
environmental and applian under
environmental
energy saving ce Complete planning www.cninfo.com.c
Self- Self-o and Not 2017-3-14
refrigerator intelligent Yes manufa 18,700,000 18,700,000 8.92% of total during the n
built wned energy-saving Applicable
production line cturing investment reporting ( Announcement
Funds refrigerators shall
construction project industr period, no No. 2017-006)
be formed after
(Note 1) y income yet.
this project being
put into operation
The The production
Home company capacity of 2 Project is
applian successfully million sets of under
2 million sets of
ce Self-o bade for the automatic planning Not www.cninfo.com.c
automatic washing Self- 2017-3-30,
machines production built
Yes manufa 134,585,900 134,585,900 wned plant, office washing machine during the applicable 2017-4-14
n (Announcement
cturing Funds building and shall be formed reporting No. 2017-010, No.
base project (Note 2)
industr land use rights after this project period, no 2017-024)
y under the being put into income yet.
name of Anhui operation
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
Dongwei Solar
Technology
Co., Ltd. from
the judicial
sale with its
own funds of
RMB134,585,
900, the
project is
under planning
at present
Total -- -- -- 153,285,900 153,285,900 -- -- -- -- -- -- --
Note 1: In order to meet the increasing market demands, make up for the insufficient capacity, enhance the operating efficiency of the
company's production line, and further promote the company's intelligent manufacturing process, the 28th meeting of the company's 8th Board
of Directors approved and agreed the company’s subsidiary Jiangxi Meiling Electric Appliance Co., Ltd. (Hereinafter referred to as ―Jiangxi
Meiling‖) to invest RMB 209,600,000 to build 1 million sets of environmental and energy saving refrigerator intelligent production line
construction project, meanwhile, in order to ensure the smooth implementation of this investment and construction project, agreed the company
to increase capital of RMB 200 million to Jiangxi Meiling for investing in this project. See details on ―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. 2017-006) on March 14, 2017. At present, this project is going well, plant construction and equipment procurement are underway.
Note 2: According to the company's strategic development plan, combined with the company's business needs, and in order to make up for
the insufficient research and manufacturing capacity of washing machine industry so as to meet the market demands, the 29th meeting of the
company's 8th Board of Directors approved and agreed the company’s to invest no more than RMB 371,210,000 in the construction of the 2
million sets of automatic washing machines production base project. In addition, the 29th meeting of the company's 8th Board of Directors
approved and agreed the company to successfully bid for the plant and office building (covering an area of 86,087.65 square meters) and land
use rights (covering an area of 116,233.61 square meters) under the name of Anhui Dongwei by public auction organized by the court with its
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
own funds of RMB134,585,900, and use the plant and land as the washing machine production base for construction. See details on ―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. 2017-010, No. 2017-024) on March 30, 2017 and April 14, 2017. The project construction is still under
planning at present. In order to launch the self-built washing machine manufacturing base project as soon as possible and find a suitable place
for the project implementation, after the field research, assessment and analysis, the company has agreed to participate in the judicial sale of the
plant, office building and land use rights under the name of Anhui Dongwei Solar Technology Co., Ltd. (Hereinafter referred to as ―Anhui
Dongwei‖) that Shushan District People's Court of Hefei City published on the website of Hefei Public Resource Trading Center with its own
funds of no more than RMB158,085,900, and participated in this bidding in accordance with legal procedures. The company finally received
the Execution Ruling in Writing (No. (2016)W0104Z009) issued by Shushan District People's Court of Hefei City on April 12, 2017. At present,
the company is actively handling the procedures related to assets transfer in accordance with the Execution Ruling in Writing issued by Shushan
District People's Court of Hefei City.
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
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
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
In 10 thousand Yuan
Amount of Ratio of
reserve for investment
Relate Whether
Investment Amount Amount sales in devaluation Investment amount at Actual
d related Initial
Operator Type Start date End date amount at purchased in the the reporting of amount at period-end in net gains/losses in
relatio trade or investment
period-begin reporting period period withdrawing period-end assets of the period
nship not
(if Company at
applicable) period-end
Forward
Financial foreign
N/A No 63,230.44 2016-6-8 2018-6-26 37,890.69 146,171.07 83,257.22 - 100,081.32 19.55% 723.22
institution exchange
contract
Total 63,230.44 -- -- 37,890.69 146,171.07 83,257.22 - 100,081.32 19.55% 723.22
Capital resource(if applicable) Owned fund
Lawsuit involved (if applicable) Not applicable
Disclosure date for approval from the Board
2017-3-30
for investment of derivatives (if applicable)
Disclosure date for approval from board of
shareholders for investment of derivatives (if 2017-5-4
applicable)
1. Market risk: domestic and international economic situation changes may lead to exchange rate fluctuations, forward foreign exchange transactions are under certain
Risk analysis and controlling measures for market risk. Forward foreign exchange business is aiming to reducing impact on corporate profits by foreign exchange settlement and sale prices, exchange rate
derivatives holdings in the Period (including fluctuations. The Company will follow up the exchange fluctuation, on the basis of target rate determined from the business, relying on the research of the foreign currency
but not limited to market risk, liquidity risk, exchange rates, combined with prediction of consignments, and burdening ability to price variations due to exchange rate fluctuations, then determine the plan of forward
credit risks, operation risk and law risks etc.) foreign exchange contracts, and make dynamic management to the business, to ensure reasonable profit level.
2. Liquidity risk: all foreign exchange transactions are based on a reasonable estimate of the future import and export business, to meet the requirements of the trade
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
authenticity. In addition, forward foreign exchange transactions are processed with bank credit, will not affect liquidity of company funds.
3. Bank default risk: if cooperative banks collapse within the contract time, the Company will not be able to transact the original foreign exchange contracts with contract
price, which leads the risk of income uncertainty. So the Company chose Bank of China, Agricultural Bank of China, Industrial and Commercial Bank of China, China
Construction Bank and other Chinese Banks and part of the larger foreign Banks (such as Deutsche Bank, UOB, Overseas Chinese Bank, HSBC, etc.) to conduct the
trading of foreign exchange capital. These banks share a solid strength and management whose failure and the risk of loss may bring to the Company is very low.
4. Operational risk: improper operation of the person in charge of forward foreign exchange transactions may cause related risk also. The Company has formulated related
management system which defines the operation process and responsibility to prevent and control risks.
5. The legal risks: unclear terms based in contract signed with banks for related transactions may lead legal risks when forward foreign exchange transactions are
processing. The Company will strengthen legal review, and choose good bank to carry out this kind of business as to risk control.
Invested derivative products have changes in The Company determines fair value in accordance with the Chapter VII ―Determination of Fair Value‖ carried in the Accounting Standards for Business Enterprises No.22 -
market price or fair value in the Period, as 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
for analysis of the fair value of derivatives, derivatives is mainly obtained according to the balance between prices given by outstanding contracts and forward prices given by contracts signed during the reporting
disclosed specific applied methods and 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
correlation assumption and parameter setting Company is RMB 7.2322 million.
Specific principle of the accounting policy
and calculation for derivatives in the Period
Not applicable
compared with last period in aspect of major
changes
Upon inspection, the independent directors of the Company believes that: during the reporting period, the Company carried out its foreign exchange forward deals in strict
compliance with the standardized operation guidelines for listed issuer on main board (2015 amended) issued by Shenzhen Stock Exchange, the Articles of Association,
Authorization Management of the Company, Management System in relating to Foreign Exchange Forward Deals of Hefei Meiling Co., Ltd., and these deals were
conducted within the aut horization scope under general meeting and board meeting. The Company conducts no foreign exchange transactions on the purpose of getting
Special opinion on derivative investment and
profit only, all of the forward foreign exchange transactions are operates based on normal operating and production, which is relying on specific business operations with
risk control by independent directors
purpose of avoiding the preventing the risks in exchange rate. The forward foreign exchange transactions of the Company are beneficial to prevent the exchange risks
exposed by import and export business and thus met its requirement for operation development. There was no speculative operation, no break of relevant 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.
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
VI. 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
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
VII. Analysis of main holding company and stock-jointly companies
√ Applicable □ Not applicable
(I) Particular about main subsidiaries and stock-jointly companies net profit over 10%
In RMB
Register
Company name Type Main business Industry Total assets Net Assets Operating revenue Operating profit Net profit
capital
Research and
Zhongke Meiling development,
Cryogenic manufacturing and Manufact
Subsidiary 68,150,000 226,577,616.47 115,862,492.11 60,567,937.18 2,936,293.64 2,968,339.70
Technology Co., sales of ultra-low uring
Ltd. temperature
freezer
Jiangxi Meiling
Manufacturing of
Electric Manufact
Subsidiary refrigeration and 50,000,000 610,043,716.32 88,495,146.09 340,298,917.37 223,238.07 1,883,499.28
Appliance Co., uring
freezer
Ltd.
Mianyang
Manufacturing of
Meiling Manufact
Subsidiary refrigeration and 100,000,000 151,479,226.93 93,466,447.72 82,194,556.20 -2,862,555.47 -4,531,208.61
Refrigeration Co., uring
freezer
Ltd.
Sichuan R&D,
Changhong manufacturing and Manufact
Subsidiary 200,000,000 3,526,134,410.37 577,588,200.20 2,781,737,556.72 33,535,396.53 36,882,767.44
Air-conditioner domestic sales of uring
Co., Ltd. air-conditioner
R&D,
Zhongshan
manufacturing and Manufact
Changhong Subsidiary 184,000,000 1,597,637,700.67 231,496,283.85 1,384,285,987.97 -12,543,826.48 -14,522,841.05
domestic sales of uring
Electric Co., LTD
air-conditioner
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
Hefei Meiling
Electric
Sales of white
Appliance Subsidiary Sales 55,000,000 278,321,076.78 -266,636,231.93 802,402,320.20 41,454,464.99 41,789,074.03
goods
Marketing Co.,
Ltd
Hefei Meiling
Sales of white
Group Holdings Subsidiary Sales 80,000,000 1,006,170,550.42 85,757,235.04 1,476,038,071.44 3,629,197.39 2,860,990.99
goods
Limited
Changmei E-business of Fresh foo
Technology Co., Subsidiary agricultural d e-com 50,000,000 12,091,268.44 7,723,134.41 9,131,880.78 -4,860,660.93 -4,858,959.95
Ltd. products and fresh merce
R&D,
Guangdong manufacturing and
Changhong sales of kitchen
Manufact
Ridian Subsidiary and toilet 83,000,000 248,987,291.99 113,175,193.72 208,290,529.53 4,394,461.91 4,057,326.42
uring
Technology Co., products, small
Ltd. home appliances
and water purifier
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
(II) Notes of holding and shareholding companies
√ Applicable □ Not applicable
The method of
obtaining and
Company Name handling The influence to the whole production and performance
subsidiaries during
the report period
Co-invested and established with Candy Group on April 27,
2017, mainly takes charge of the production, research and
development, and sales of washing machine products, which
is conducive to improving the comprehensive competitiveness
of the company's washing machine products. The company
will make full use of the production capacity, product
Meiling CANDY Washing
Investment development capabilities, sales channels, manufacturing scale
Machine Co., Ltd.
and quality control and other advantages that the company
and Candy Group have in washing machine so as to rapidly
lay out the washing machine market, expand the product
market shares of Meiling brand and Candy brand, and
enhance the company's profitability and comprehensive
competitiveness.
Established on May 11, 2017, mainly engaged in research and
development, and sales of air-conditioning products, which is
Zhongshan Hongyou Electric conducive to enhancing the competitiveness of
Investment
Co., Ltd. air-conditioning products, further optimizing the product
structure, and expanding the overseas business development
of air-conditioning.
Guangzhou Changhong Trade Minor effect on the overall production and operation and
Investment
Co., Ltd. performance of the company
Zhongshan Hongling Trade Minor effect on the overall production and operation and
Investment
Co.,Ltd. performance of the company
Xi’an Meizhilai Electric Minor effect on the overall production and operation and
Clearing off
Appliance Marketing Co., Ltd. performance of the company
Notes of holding and shareholding companies: Nil
VIII. Structured vehicle controlled by the Company
□ Applicable √ Not applicable
IX. Prediction of business performance from January – September 2016
Estimation on accumulative net profit from the beginning of the year to the end of next report
period to be loss probably or the warning of its material change compared with the corresponding
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
period of the last year and explanation on reason
□ Applicable √ Not applicable
X. Risks and countermeasures
(1) risks and countermeasures
In the 2017, faced with the more intense competition in home appliance market and other
objective factors, the enterprise will have worse survival environment. In the future, the company
will face the weak macroeconomic growth, severe industry situation, intensifying competition,
rising costs, new business models and the impact of Internet era and other risks.
Faced with the above risks, on the one hand, the company will raise awareness of risk
prevention and make layout in product, technology, and market ahead of time. Along with the
smooth implementation of intelligent manufacturing, intelligent research and intelligent life, the
company’s products are transforming to high end and intelligence, the company will insist on the
intelligent and variable frequency product strategy, at the same time, enrich the product lines and
build a comprehensive home appliance enterprise. On the other hand, under the leadership of the
board of directors and the guideline of ―Meiling Dream‖, the company will carry out the guideline
for management of ―product leading, marketing force, manufacturing breakthrough, mechanism
protection‖, take globalization as a platform to continue to promote technological innovation, and
improve the product competitiveness from quality, high end and fashion technology by promoting
the manufacturing efficiency and technological level; speed up the online and offline channel
integration by improving the offline terminal marketing capacity of domestic sales and breaking
through the weak regional market; actively and positively explore the private brand construction in
overseas markets, and accelerate the pace of overseas merger and acquisition; give full play to the
driving force of internal system changes and management mechanism innovation, and activate the
team independent innovation power so as to provide mechanism guarantee for the company’s
sustainable and healthy development.
(ii) Business plan in the next half year
Under the guidelines of strategic planning, in the second half of 2017, the company will
continue to focus on the ―product leading, marketing force, manufacturing breakthrough,
mechanism protection‖ to carry out business and management work and achieve the company's
healthy and sustainable development. Aiming at the deficiencies and risks in the first half year, the
company's industrial units need to accomplish following work:
1. Refrigerator (Freezer)
Continue to adhere to the intelligence and variable frequency two core product strategies. In
the intelligence aspect, speed up the development and upgrading of a new generation of intelligent
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
product, and implement the company's intelligent strategy; in the variable frequency aspect,
strengthen the standardization of variable frequency products; expand the cost advantages and
technology leadership, enhance the competitiveness of variable frequency products; promote the
high-end and intelligent upgrading of the company's product structure, and drive the company's
industrial transformation and upgrading; at the same time, improve the manufacturing efficiency
and product quality, reduce the product costs and enhance the product competitiveness by fully
implementing intelligent upgrading and rebuilding to the production lines.
The domestic market takes frequency leading, intelligent pilot, multi-door becoming stronger,
back to back getting bigger, air-cooling jump start as the thinking, makes reasonable planning,
promote the products’ combination ability, and enhance the domestic sales capacity by adjusting
the product structure. Overseas markets should adhere to the brand structure of ―own brands +
OEM / ODM‖, enhance product quality, expand sales scale, maintain sustainable competitiveness,
and promote internationalization process; improve the additional value of medium-end products by
promoting the industrial design and differentiation strategy; speed up the development of high-end
products and market introduction, improve profitability and consolidate the cooperation with
strategic customers.
2. Air conditioning
Continue to take the opportunities of industry development and industry competition pattern
adjustment, take market planning as a leader, increase R & D investment, integrate supply chain
resources, improve efficiency, and steadily develop traditional business; orderly lay out emerging
businesses, strengthen the promotion of central air conditioning business, further strengthen the
in-depth cooperation with MIUI and other enterprises, expand ODM / OEM business, and actively
seek increment; actively explore new business models, promote O2O, promote online and offline
business balance development; increase the scale of export business, control costs, and increase
incomes; fully integrate the air conditioning manufacturing resources in Mianyang and Zhongshan,
complete manufacturing upgrades and intelligent transformation, and provide guarantee for
business development.
3. Washing machine
On the one hand, strengthen the construction of the core stores of retail channel, continue to
promote and speed up the progress of new products, protect the supply of new products, ensure the
sales demand, and achieve balanced development of market; on the one hand, strengthen the
communication and coordination with Candy Group, and launch front loading washing machine
suitable for Chinese market, improve product quality, and control product costs. In addition,
accelerate the promotion of top loading washing machine and the development of production line
by introducing professionals.
4. Small appliances
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
Develop e-commerce channels, supplement and enrich the existing online products; in the
offline market, make in-depth maintenance and expansion to the existing and newly opened
channel customers, establish promotion models by investment attraction channels to drive the
outlet sales of traditional channels; continue to improve the intelligent products camp, enrich the
intelligent product models of common internet of things, and develop the high-end intelligent
products with automatic speech recognition and screen, and continue to promote the development
of small appliance product lines.
5. Bio-medical care
As the platform for the comprehensive development of bio-medical industry and the
company’s subsidiary listed on new three board, in the second half of 2017, Zhongke Meiling will
continue to implement the strategy of ―diversification of related industries‖, steadily expand the
cold chain storage business and complete the family health industry technical reserves based on the
existing cold storage business, and timely expand its own business lines.
6. Intelligent life new business model
Continue to promote the investment project ―intelligent life project‖ and build Meiling
intelligent life O2O community fresh business platform with steady operating strategy. Rely on the
company’s advantages in intelligent and refrigeration fields to promote the layout in intelligent
terminal and refrigeration self pick-up cabinet; the direct sales business of fresh food focus on
regionalization and localization, intensify the superior products and the resource integration
capabilities of supply chain; gradually integrate the regional and national brand enterprises
entering business and continue to promote the construction of intelligent life O2O service platform
based on the intelligent terminal and fresh e-commerce business. The goal of the company is to
transform to ―equipment + service‖ model by means of food management, provide exploration for
the intelligent transformation of refrigerator, help the company to move towards high-frequency
service sales from low-frequency hardware sales, form the \"hardware + service\" double growth
engine, and drive the transformation and upgrading of the company’s profit model.
The above business plan and business objectives do not represent the listed company’s profit
forecast of 2017, whether it can be achieved depends on the changes in market condition, the
efforts of management team and other factors, there are a lot of uncertainties, investors should pay
special attention to it.
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
Section V. Important Events
I. AGM and extraordinary general meeting
1. AGM held in the period
Participati
on ratio
Meeting Type Holding date Disclosure date Index
for
investors
Juchao Website
Annual general (www.cninfo.com.cn), Resolution
2016 AGM 30.73% 2017-5-4 2017-5-5
meeting Notice of AGM of 2016 (Notice
No.: 2017-031)
First Juchao Website
Extraordinary Extraordinary (www.cninfo.com.cn), Resolution
General General 30.36% 2017-6-20 2017-6-21 Notice of First Extraordinary
Meeting of Meeting General Meeting of 2017 (Notice
2017 No.: 2017-041)
2. Request for extraordinary general meeting by preferred stockholders with rights to
vote
□ Applicable √ Not applicable
II. 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-annual
III. Commitments that the company, shareholders, actual controller, offeror, directors,
supervisors, senior management or other related parties have fulfilled during the reporting
period and have not yet fulfilled by the end of reporting period
□ Applicable √ Not applicable
There are no commitments that the company, shareholders, actual controller, offeror, directors,
supervisors, senior management or other related parties have fulfilled during the reporting period
and have not yet fulfilled by the end of reporting period.
IV. Appointment and non-reappointment (dismissal) of CPA
Whether the semi-annual financial report had been audited
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
□Yes √ No
The semi-annual report was not audited
V. 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 in Period.
VIII. Lawsuits
1. Material lawsuits and arbitration
□ Applicable √ Not applicable
No material lawsuits and arbitration in the reporting
2. Other lawsuits
√ Applicable □ Not applicable
To maintain the independence and integrity of \"Meiling\" trademark and trade name, the
company has launched a series of litigation and arbitration related to \"Meiling\" trademark, please
see 2014 first quarter report, 2014 semi-annual report, the 2014 annual report disclosed
respectively on April 19, 2014, August 12, 2014, and March 26, 2014 for the relevant progress. Up
to now, Hefei Meiling Household Appliances Co., Ltd., Hefei Meiling Environmental Protection
Equipment Technology Co., Ltd., Hefei Meiling Purifying Equipment Technology Co., Ltd., Hefei
Meiling Electrical Appliances Co., Ltd., Hefei Meiling Cabinet Electrical Appliance Co., Ltd.,
Hefei Meiling Vehicle Industry Co., Ltd., Hefei Meiling Intelligent Technology Co., Ltd. (former
Hefei Meiling Communication Technology Co., Ltd., which changed its business name as Hefei
Meiling Intelligent Technology Co., Ltd. by themselves, the Company is pursue legal
responsibility by the law) have had no right to use \"Meiling\" trademark.
At present, only the kitchen ventilator, cooker, water heater, water purifiers and household
electrical appliances manufactured and sold by the Company and its wholly-owned subsidiary -
Guangdong Changhong Ridian Technology Co., Ltd. are the company's regular products, any other
small household appliances using same or similar trademark as our company or using the trade
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
name similar to the Company’s name are the Company’s products. In view of the infringement to
the Company’s trademark and trade name, false propaganda and 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 whole country.
IX. Penalty and rectification
□ Applicable √ Not applicable
No penalty and rectification for the Company in reporting period.
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 had good reputation, and there is no large amount due unliquidated debt sentenced
by the court.
XI. Implementation of the company’s stock incentive plan, employee stock ownership
plan or other employee incentives
√ Applicable □ Not applicable
Implementation for annual performance incentive fund
On August 9, 2012 and August 28, 2012, the Company considers the adoption of \"Hefei
Meiling annual performance incentive fund implementation plan\" (hereinafter referred to as \"\"
stimulus \"\") on the 16th meeting of the 7th board of directors and the 2012-second provisional
shareholders meeting. Details were disclosed on information disclosure media appointed by the
Company as \"Securities Times\", \"Chinese Securities Daily\", \"Hong Kong Commercial Daily\" and
the Juchao network (www.cninfo.com.cn) on August 10, 2012 and August 29th in the form of
announcement (No.: 2012-028, No.:2012-035).
1. Implementation about 2012, 2013 and 2014 performance incentive fund provision and
distribution plan
See details in \" Implementation about 2012, 2013 and 2014 performance incentive fund
provision and distribution plan\" in \"XV Implementation of the company's stock incentive plan,
employee stock ownership plan, or other employee incentive measures\" in \"Section V Significant
Events\" of the company's \"2016 Annual Report\" disclosed on March 30, 2017.
2. The implementation of provision and allocation program of 2016 annual performance
incentive funds
According to the ―Incentive Plan‖ approved by the company, the audited operating results and
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
actual operation of the company in 2016 have met the requirements for awarding the annual
performance incentive funds. The company held the 29th meeting of the 8the Board of Directors
and the 15th meeting of the 8th Board of Supervisors and the Annual General Meeting of
Shareholders of 2016 on March 28, 2017 and May 4, 2017, the independent directors made
independent opinions, and the benefited directors abstained from voting, the meetings considered
and approved the ―Proposal on the Provision for the Company's 2016 Annual Performance
Incentive Funds‖. In addition, the company held the 32nd meeting of the 8th Board of Directors,
the 17th meeting of the 8th Board of Supervisors, and the first extraordinary general meeting of
shareholders in 2017 on June 2, 2017 and June 20, 2017, the independent directors made
independent opinions, and the benefited directors abstained from voting, the meetings considered
and approved the ―Allocation Plan for the Company's 2016 Annual Performance Incentive Funds‖,
the details are as follows:
(1) Incentive range and number of people: 39 eligible objects (senior management, middle
management, core technical staff and the core backbone staff).
(2) Source of funds: withdraw performance incentive funds of RMB 24,182,200 by 10% of
the audited net profits attributable to shareholders of listed companies in 2016, and allocate RMB
23.63 million of the withdrawn incentive funds to 39 incentive objects (senior management,
middle management, core technical staff and the core backbone staff) whom conform to national
laws and regulations and the requirements of ―Incentive Plan‖. The incentive objects purchase the
Company’s stock by their received performance incentive funds (after paying the relevant tax) plus
no less than 30% of their annual total remuneration (annual total remuneration except for the
performance incentive funds and after paying the corresponding income tax and five social
insurances and housing fund) through the open market.
(3) Shareholding situation: According to the provisions of ―Incentive Plan‖ approved by the
company, in the premise of conforming to the listing rules of the Shenzhen Stock Exchange and
other applicable Chinese laws and regulation, the incentive objects promise to purchase the
Company’s stock through the open market within 60 working days (The time shall be postponed in
case of a period that the regulator requires the Company’s stock cannot be trade) after receiving the
performance incentive funds. As of the disclosure date of this report, this incentive plan is still in
progress.
(4) Changes in equity interests arising from disposal shares due to incentive objects: aim at
shares purchased by incentive objects without disposal during the reporting period.
(5) Commitment on restricted holding shares: according to the regulations of ―Incentive Plan‖
and the commitment of all incentive objects, the Company’ shares purchased by them shall not be
reduced by any market approach in the next year from the date of purchase, but the holding shares
can be reduced by 50% after the second year according to the laws and regulations, and the
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
remaining 50% can be reduced after the third year according to the laws and regulations. In
addition, some directors, supervisors and senior executives among the incentive objects promise to
handle the shares in accordance with the relevant management methods of the Company Law, the
Securities Law, and the Company’s Shares Held by the Directors, Supervisors and Senior
Management of List Company and the Shares’ Change Management Rules, including but not
limited to: during the term of office, the annual transfer of shares shall not exceed 25% of the
Company’s shares held by oneself; cannot sell the Company’s share within 6 months after the
purchase or repurchase within six months after the sale; cannot transfer the company’s shares
within six months after dimission.
See details on ―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. 2017-010, No. 2017-011, No. 2017-015, No. 2017-031, No. 2017-035, No.
2017-036, No. 2017-037, No. 2017-041) on March 30, 2017, May 5, 2017, June 3, 2017, and June
21, 2017.
3. Share holding and reduction of the company’s performance incentive objects
As of June 30, 2017, all incentive objects held a total of 10,079,679 shares, accounting for
0.9649% of the company’s general capital, of which 8,746,547 shares of A share, accounting for
approximately 0.8373% of the company’s general capital, 1,333,132 shares of B share, and
accounting for about 0.1276% of the company’s general capital. Some 2012 and 2013 annual
performance incentive objects (not directors, supervisors or senior management) have totally
reduced share of 3,477,477 shares from September 2014 to the end of the this reporting period,
accounting for approximately 0.3329% of the company’s general capital, and reduced holding of
222,900 shares in this reporting period.
XII. Major related transaction
1. Related transaction with routine operation concerned
√ Applicable □ Not applicable
(1) Related transaction with routine operation concerned
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
Whet
her
Trading over
Availab
Related Proport limit the
Related Clearing
Type of transaction ion in le Date of
Seri Content of Pricing transaction approve appro form for
Related related amount similar
Relationship related principl price (in 10 related similar disclosur Index of disclosure
al party transac (in 10 transact d (in 10 ved
transaction e thousand transact
tion thousand ions market e
Yuan) thousan limite ion
Yuan) (%)
price
d Yuan) d or
not
(Y/N)
Electric melting,
Spot Juchao
Sichuan Controlling Commo resistors, 30 March
exchang Website(www.cninfo.com.cn)
Changhong shareholder and dity integrated Marketi 2017; 5
1 20,358.26 20,358.26 2.82% 26,000 N e, Bank -- Notice No.: 2017-010,
Electric Co., ultimate purchas circuit ng price May
acceptan 1017-011, 2017-013 and
Ltd. controller ed accessory, color
ce 2017-031
masterbatch
Other enterprise
Spot Juchao
control under the Commo 30 March
Huayi exchang Website(www.cninfo.com.cn)
same controlling dity Marketi 2017; 5
2 Compressor Compressor etc. 22,954.46 22,954.46 3.18% 60,000 N e, Bank -- Notice No.: 2017-010,
shareholder and purchas ng price May
Co., Ltd. acceptan 1017-011, 2017-013 and
ultimate ed
ce 2017-031
controller
Other enterprise Bank
Sichuan Juchao
control under the Commo and 30 March
Changhong Website(www.cninfo.com.cn)
same controlling dity Plastic products Marketi commerc 2017; 5
3 Mold Plastic 32,589.07 32,589.07 4.51% 52,000 N -- Notice No.: 2017-010,
shareholder and purchas etc. ng price e May
Tech. Co., 1017-011, 2017-013 and
ultimate ed acceptan
Ltd. 2017-031
controller ce
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
Other enterprise Bank
Juchao
Sichuan control under the Commo and 30 March
Website(www.cninfo.com.cn)
Changhong same controlling dity Door shell, Marketi commerc 2017; 5
4 15,533.97 15,533.97 2.15% 27,000 N -- Notice No.: 2017-010,
Jijia Fine shareholder and purchas baseboard etc. ng price e May
1017-011, 2017-013 and
Co., Ltd. ultimate ed acceptan
2017-031
controller ce
Other enterprise Bank
Sichuan Juchao
control under the Commo and 30 March
Changhong Packing case, Website(www.cninfo.com.cn)
same controlling dity Marketi commerc 2017; 5
5 Package printed matter 5,360.60 5,360.60 0.74% 8,000 N -- Notice No.: 2017-010,
shareholder and purchas ng price e May
Printing etc. 2017-011, 2017-013 and
ultimate ed acceptan
Co., Ltd. 2017-031
controller ce
Sichuan Other enterprise
Juchao
Changhong control under the Commo 30 March
Bank Website(www.cninfo.com.cn)
Precision same controlling dity Printed board Marketi 2017; 5
6 748.78 748.78 0.10% 8,000 N acceptan -- Notice No.: 2017-010,
Electronics shareholder and purchas components etc. ng price May
ce 2017-011, 2017-013 and
Tech. Co., ultimate ed
2017-031
Ltd. controller
Other enterprise
Sichuan Juchao
control under the Commo 30 March
Changhong Spot Website(www.cninfo.com.cn)
same controlling dity Power supply, Marketi 2017; 5
7 New Energy 0.71 0.71 0.00% 8,000 N exchang -- Notice No.: 2017-010,
shareholder and purchas battery ng price May
Technology e 2017-011, 2017-013 and
ultimate ed
Co., Ltd. 2017-031
controller
Other enterprise
Juchao
control under the Commo 30 March
081 Spot Website(www.cninfo.com.cn)
same controlling dity Marketi 2017; 5
8 Electronic Transformer etc. 235.55 235.55 0.03% 4,000 N exchang -- Notice No.: 2017-010,
shareholder and purchas ng price May
Group e 2017-011, 2017-013 and
ultimate ed
2017-031
controller
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
Other enterprise
Juchao
Guangdong control under the Commo 30 March
Spot Website(www.cninfo.com.cn)
Changhong same controlling dity Foam pieces Marketi 2017; 5
9 663.79 663.79 0.09% 8,000 N exchang -- Notice No.: 2017-010,
Electronics shareholder and purchas etc. ng price May
e 2017-011, 2017-013 and
Co., Ltd. ultimate ed
2017-031
controller
Sichuan
Other enterprise
Changhong Spot Juchao
control under the Commo 30 March
Intelligent exchang Website(www.cninfo.com.cn)
same controlling dity Marketi 2017; 5
10 Manufacturi Hand piece 86.44 86.44 0.01% 4,000 N e, Bank -- Notice No.: 2017-010,
shareholder and purchas ng price May
ng acceptan 2017-011, 2017-013 and
ultimate ed
Technology ce 2017-031
controller
Co., Ltd.
Other enterprise
Sichuan Spot Juchao
control under the Commo 30 March
Changhong Sheet metal exchang Website(www.cninfo.com.cn)
same controlling dity Marketi 2017; 5
11 Xinrui parts, plastic 4,901.96 4,901.96 0.68% 7,000 N e, Bank -- Notice No.: 2017-010,
shareholder and purchas ng price May
Technology parts etc. acceptan 2017-011, 2017-013 and
ultimate ed
Co., Ltd ce 2017-031
controller
Other enterprise
Sichuan Juchao
control under the Commo 30 March
Zhiyijia Spot Website(www.cninfo.com.cn)
same controlling dity Electronic Marketi 2017; 5
12 Network 0.92 0.92 0.00% 8,000 N exchang -- Notice No.: 2017-010,
shareholder and purchas products ng price May
Technology e 2017-011, 2017-013 and
ultimate ed
Co., Ltd. 2017-031
controller
Other enterprise Juchao
Commo 30 March
Sichuan control under the Spot Website(www.cninfo.com.cn)
dity Electric Marketi 2017; 5
13 Huafeng same controlling 1.40 1.40 0.00% 4,000 N exchang -- Notice No.: 2017-010,
purchas appliance parts ng price May
Corp. Group shareholder and e 2017-011, 2017-013 and
ed
ultimate 2017-031
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
controller
Spot
Other enterprise exchang
Sichuan Juchao
control under the Commo e, Bank 30 March
Changhong Printed boards, Website(www.cninfo.com.cn)
same controlling dity Marketi and 2017; 5
14 Electronic transformers, 2,403.23 2,403.23 0.33% 4,000 N -- Notice No.: 2017-010,
shareholder and purchas ng price commerc May
Products etc. 2017-011, 2017-013 and
ultimate ed e
Co., Ltd. 2017-031
controller acceptan
ce
Spot
Other enterprise exchang
Juchao
Sichuan control under the Commo e, Bank 30 March
Website(www.cninfo.com.cn)
ilink same controlling dity Internet access Marketi and 2017; 5
15 434.57 434.57 0.06% 4,000 N -- Notice No.: 2017-010,
Technology shareholder and purchas module ng price commerc May
2017-011, 2017-013 and
Co., Ltd. ultimate ed e
2017-031
controller acceptan
ce
Other enterprise
Sichuan Juchao
control under the Commo 30 March
Changhong Spot Website(www.cninfo.com.cn)
same controlling dity Digital module Marketi 2017; 5
16 Education 5.03 5.03 0.00% 4,000 N exchang -- Notice No.: 2017-010,
shareholder and purchas component ng price May
Technology e 2017-011, 2017-013 and
ultimate ed
Co., Ltd. 2017-031
controller
Information Spot Juchao
Sichuan Controlling 30 March
Accept system services, exchang Website(www.cninfo.com.cn)
Changhong shareholder and Marketi 2017; 5
17 the marketing fees, 816.50 816.50 0.94% 5,000 N e, Bank -- Notice No.: 2017-010,
Electric Co., ultimate ng price May
services repair fees, acceptan 2017-011, 2017-013 and
Ltd. controller
shared service ce 2017-031
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
fees
Sichuan
Juchao
Changhong Controlling 30 March
Accept Spot Website(www.cninfo.com.cn)
Electronics shareholder and Marketi 2017; 5
18 the Shuttle fee 2.30 2.30 0.00% 4,000 N exchang -- Notice No.: 2017-010,
Holding ultimate ng price May
services e 2017-011, 2017-013 and
Group Co., controller
2017-031
Ltd.
Other enterprise
Sichuan Spot Juchao
control under the 30 March
Changhong Accept Transportation, exchang Website(www.cninfo.com.cn)
same controlling Marketi 2017; 5
19 Minsheng the storage, loading 25,148.50 25,148.50 29.02% 55,000 N e, Bank -- Notice No.: 2017-010,
shareholder and ng price May
Logistics services and unloading acceptan 2017-011, 2017-013 and
ultimate
Co., LTD ce 2017-031
controller
Sichuan
Other enterprise
Service Spot Juchao
control under the 30 March
Exp. Accept After-sales exchang Website(www.cninfo.com.cn)
same controlling Marketi 2017; 5
20 Appliance the maintenance fee 7,391.89 7,391.89 8.53% 20,000 N e, Bank -- Notice No.: 2017-010,
shareholder and ng price May
Service services etc. acceptan 2017-011, 2017-013 and
ultimate
Chain Co., ce 2017-031
controller
Ltd.
Other enterprise
Juchao
Sichuan control under the 30 March
Accept Spot Website(www.cninfo.com.cn)
Hongxin same controlling Software usage Marketi 2017; 5
21 the 63.20 63.20 0.07% 5,000 N exchang -- Notice No.: 2017-010,
Software shareholder and fee ng price May
services e 2017-011, 2017-013 and
Co., Ltd. ultimate
2017-031
controller
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
Other enterprise
Juchao
Guangdong control under the 30 March
Accept Spot Website(www.cninfo.com.cn)
Changhong same controlling Security service Marketi 2017; 5
22 the 30.86 30.86 0.04% 5,000 N exchang -- Notice No.: 2017-010,
Electronics shareholder and charge ng price May
services e 2017-011, 2017-013 and
Co., Ltd. ultimate
2017-031
controller
Other enterprise
Juchao
Sichuan control under the 30 March
Accept Maintenance Spot Website(www.cninfo.com.cn)
Jiahong same controlling Marketi 2017; 5
23 the fee, business 23.66 23.66 0.03% 4,000 N exchang -- Notice No.: 2017-010,
Industrial shareholder and ng price May
services activity fee e 2017-011, 2017-013 and
Co., Ltd. ultimate
2017-031
controller
Other enterprise
Sichuan Juchao
control under the 30 March
Changhong Accept Spot Website(www.cninfo.com.cn)
same controlling Business Marketi 2017; 5
24 Internationa the 8.31 8.31 0.01% 4,000 N exchang -- Notice No.: 2017-010,
shareholder and activity fee ng price May
l Hotel Co., services e 2017-011, 2017-013 and
ultimate
Ltd. 2017-031
controller
Other enterprise
Juchao
CHANGHO control under the 30 March
Accept Spot Website(www.cninfo.com.cn)
NG(HK)TR same controlling Marketi 2017; 5
25 the Sales expense 23.75 23.75 0.03% 5,000 N exchang -- Notice No.: 2017-010,
ADINGLIM shareholder and ng price May
services e 2017-011, 2017-013 and
ITED ultimate
2017-031
controller
Sichuan Other enterprise
Juchao
Changhong control under the 30 March
Accept Spot Website(www.cninfo.com.cn)
Internationa same controlling Marketi 2017; 5
26 the Plane ticket 3.13 3.13 0.00% 4,000 N exchang -- Notice No.: 2017-010,
l Travel shareholder and ng price May
services e 2017-011, 2017-013 and
Service Co., ultimate
2017-031
Ltd. controller
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
Other enterprise
Sichuan Juchao
control under the 30 March
Changhong Accept Property fee and Spot Website(www.cninfo.com.cn)
same controlling Marketi 2017; 5
27 Property the maintenance 38.62 38.62 0.04% 4,000 N exchang -- Notice No.: 2017-010,
shareholder and ng price May
Service Co., services cost e 2017-011, 2017-013 and
ultimate
Ltd. 2017-031
controller
Other enterprise
Juchao
Sichuan control under the 30 March
Accept Laboratory Spot Website(www.cninfo.com.cn)
Hongwei same controlling Marketi 2017; 5
28 the technical 20.67 20.67 0.02% 5,000 N exchang -- Notice No.: 2017-010,
Technology shareholder and ng price May
services service fee e 2017-011, 2017-013 and
Co., Ltd. ultimate
2017-031
controller
Other enterprise
Sichuan Juchao
control under the 30 March
Zhiyijia Accept Spot Website(www.cninfo.com.cn)
same controlling After-sale Marketi 2017; 5
29 Network the 15.59 15.59 0.02% 5,000 N exchang -- Notice No.: 2017-010,
shareholder and service ng price May
Technology services e 2017-011, 2017-013 and
ultimate
Co., Ltd. 2017-031
controller
Other enterprise
Juchao
Lejiayi control under the 30 March
Accept Spot Website(www.cninfo.com.cn)
Chain same controlling Marketi 2017; 5
30 the Advertising fees 2.26 2.26 0.00% 5,000 N exchang -- Notice No.: 2017-010,
Managemen shareholder and ng price May
services e 2017-011, 2017-013 and
t Co., Ltd. ultimate
2017-031
controller
Other enterprise
Sichuan Juchao
control under the 30 March
Changhong Accept Spot Website(www.cninfo.com.cn)
same controlling Communication Marketi 2017; 5
31 Network the 0.57 0.57 0.00% 5,000 N exchang -- Notice No.: 2017-010,
shareholder and expenses ng price May
Technology services e 2017-011, 2017-013 and
ultimate
Co., Ltd. 2017-031
controller
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
Sichuan
Other enterprise
Changhong Juchao
control under the 30 March
Intelligent Accept Spot Website(www.cninfo.com.cn)
same controlling Engineering Marketi 2017; 5
32 Manufacturi the 19.66 19.66 0.02% 4,000 N exchang -- Notice No.: 2017-010,
shareholder and maintenance fee ng price May
ng services e 2017-011, 2017-013 and
ultimate
Technology 2017-031
controller
Co., Ltd.
Other enterprise
Juchao
Sichuan control under the 30 March
Accept Spot Website(www.cninfo.com.cn)
Changhong same controlling Plastic Marketi 2017; 5
33 the 0.18 0.18 0.00% 5,000 N exchang -- Notice No.: 2017-010,
Jijia Fine shareholder and processing fee ng price May
services e 2017-011, 2017-013 and
Co., Ltd. ultimate
2017-031
controller
Spot Juchao
Sichuan Controlling 30 March
Accept Water, exchang Website(www.cninfo.com.cn)
Changhong shareholder and Marketi 2017; 5
34 fuel and electricity and 695.05 695.05 0.10% 8,000 N e, Bank -- Notice No.: 2017-010,
Electric Co., ultimate ng price May
power gas fees acceptan 2017-011, 2017-013 and
Ltd. controller
ce 2017-031
Other enterprise
Juchao
Guangdong control under the Water, 30 March
Accept Spot Website(www.cninfo.com.cn)
Changhong same controlling electricity and Marketi 2017; 5
35 fuel and 49.88 49.88 0.01% 8,000 N exchang -- Notice No.: 2017-010,
Electronics shareholder and compressed air ng price May
power e 2017-011, 2017-013 and
Co., Ltd. ultimate cost
2017-031
controller
Other enterprise
Juchao
Sichuan control under the 30 March
Accept Spot Website(www.cninfo.com.cn)
Jiahong same controlling Water and Marketi 2017; 5
36 fuel and 0.48 0.48 0.00% 4,000 N exchang -- Notice No.: 2017-010,
Industrial shareholder and electricity fee ng price May
power e 2017-011, 2017-013 and
Co., Ltd. ultimate
2017-031
controller
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
Other enterprise
Sichuan Juchao
control under the 30 March
Changhong Accept Spot Website(www.cninfo.com.cn)
same controlling Water and Marketi 2017; 5
37 Property fuel and 1.09 1.09 0.00% 4,000 N exchang -- Notice No.: 2017-010,
shareholder and electricity fee ng price May
Service Co., power e 2017-011, 2017-013 and
ultimate
Ltd. 2017-031
controller
Spot Juchao
Sichuan Controlling 30 March
exchang Website(www.cninfo.com.cn)
Changhong shareholder and Sales of Marketi 2017; 5
38 Air-conditioner 84,180.47 84,180.47 9.88% 130,000 N e, Bank -- Notice No.: 2017-010,
Electric Co., ultimate goods ng price May
acceptan 2017-011, 2017-013 and
Ltd. controller
ce 2017-031
Sichuan
Juchao
Changhong Controlling 30 March
Spot Website(www.cninfo.com.cn)
Electronics shareholder and Sales of Marketi 2017; 5
39 Food 99.47 99.47 0.01% 8,000 N exchang -- Notice No.: 2017-010,
Holding ultimate goods ng price May
e 2017-011, 2017-013 and
Group Co., controller
2017-031
Ltd.
Other enterprise Bank
Juchao
Sichuan control under the and 30 March
Outside Website(www.cninfo.com.cn)
Changhong same controlling Sales of Marketi commerc 2017; 5
40 processing 3,774.84 3,774.84 0.44% 7,000 N -- Notice No.: 2017-010,
Jijia Fine shareholder and goods ng price e May
materials 2017-011, 2017-013 and
Co., Ltd. ultimate acceptan
2017-031
controller ce
Other enterprise
Sichuan Juchao
control under the 30 March
Changhong Color Bank Website(www.cninfo.com.cn)
same controlling Sales of Marketi 2017; 5
41 Mold Plastic Masterbatch, 5,503.42 5,503.42 0.65% 17,000 N acceptan -- Notice No.: 2017-010,
shareholder and goods ng price May
Tech. Co., plastic particle ce 2017-011, 2017-013 and
ultimate
Ltd. 2017-031
controller
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
Other enterprise
Spot Juchao
Lejiayi control under the 30 March
Refrigerator, exchang Website(www.cninfo.com.cn)
Chain same controlling Sales of Marketi 2017; 5
42 washing 173.06 173.06 0.02% 8,000 N e, Bank -- Notice No.: 2017-010,
Managemen shareholder and goods ng price May
machine acceptan 2017-011, 2017-013 and
t Co., Ltd. ultimate
ce 2017-031
controller
Other enterprise
Juchao
PT.CHANG control under the 30 March
Air conditioning Spot Website(www.cninfo.com.cn)
HONGELE same controlling Sales of Marketi 2017; 5
43 maintenance 0.49 0.49 0.00% 8,000 N exchang -- Notice No.: 2017-010,
CTRICIND shareholder and goods ng price May
spare parts e 2017-011, 2017-013 and
ONESIA ultimate
2017-031
controller
Other enterprise
Juchao
CHANGHO control under the 30 March
Spot Website(www.cninfo.com.cn)
NG(HK)TR same controlling Sales of Refrigerator, air Marketi 2017; 5
44 24,741.31 24,741.31 2.90% 45,000 N exchang -- Notice No.: 2017-010,
ADINGLIM shareholder and goods conditioner ng price May
e 2017-011, 2017-013 and
ITED ultimate
2017-031
controller
Other enterprise
Juchao
CHANGHO control under the 30 March
Spot Website(www.cninfo.com.cn)
NGELECT same controlling Sales of Marketi 2017; 5
45 Refrigerator 847.30 847.30 0.10% 8,000 N exchang -- Notice No.: 2017-010,
RIC(AUST shareholder and goods ng price May
e 2017-011, 2017-013 and
RALIA) ultimate
2017-031
controller
Other enterprise
Juchao
Sichuan control under the 30 March
Spot Website(www.cninfo.com.cn)
Hongwei same controlling Sales of Food, Marketi 2017; 5
46 8.95 8.95 0.00% 8,000 N exchang -- Notice No.: 2017-010,
Technology shareholder and goods Air-conditioner ng price May
e 2017-011, 2017-013 and
Co., Ltd. ultimate
2017-031
controller
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
Other enterprise
Sichuan Spot Juchao
control under the 30 March
Changhong exchang Website(www.cninfo.com.cn)
same controlling Sales of Refrigerator, air Marketi 2017; 5
47 Minsheng 108.76 108.76 0.01% 8,000 N e, Bank -- Notice No.: 2017-010,
shareholder and goods conditioner ng price May
Logistics acceptan 2017-011, 2017-013 and
ultimate
Co., LTD ce 2017-031
controller
Sichuan
Other enterprise
Service Spot Juchao
control under the 30 March
Exp. exchang Website(www.cninfo.com.cn)
same controlling Sales of Maintenance Marketi 2017; 5
48 Appliance 559.66 559.66 0.07% 8,000 N e, Bank -- Notice No.: 2017-010,
shareholder and goods parts ng price May
Service acceptan 2017-011, 2017-013 and
ultimate
Chain Co., ce 2017-031
controller
Ltd.
Sichuan Other enterprise
Juchao
Changhong control under the 30 March
Spot Website(www.cninfo.com.cn)
Gerun same controlling Sales of Marketi 2017; 5
49 Waste materials 759.82 759.82 0.09% 8,000 N exchang -- Notice No.: 2017-010,
Renewable shareholder and goods ng price May
e 2017-011, 2017-013 and
Resources ultimate
2017-031
Co., Ltd. controller
Other enterprise
Juchao
Hefei control under the 30 March
Bank Website(www.cninfo.com.cn)
Changhong same controlling Sales of Marketi 2017; 5
50 Packing box 2.11 2.11 0.00% 8,000 N acceptan -- Notice No.: 2017-010,
Industrial shareholder and goods ng price May
ce 2017-011, 2017-013 and
Co., Ltd. ultimate
2017-031
controller
Other enterprise Juchao
30 March
Sichuan control under the Spot Website(www.cninfo.com.cn)
Sales of Marketi 2017; 5
51 Huafeng same controlling Air-conditioner 0.26 0.26 0.00% 8,000 N exchang -- Notice No.: 2017-010,
goods ng price May
Corp. Group shareholder and e 2017-011, 2017-013 and
ultimate 2017-031
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
controller
Spot
Other enterprise exchang
Sichuan Juchao
control under the Refrigerator, air e, Bank 30 March
Zhiyijia Website(www.cninfo.com.cn)
same controlling Sales of conditioner, Marketi and 2017; 5
52 Network 98,589.85 98,589.85 11.57% 250,000 N -- Notice No.: 2017-010,
shareholder and goods washing ng price commerc May
Technology 2017-011, 2017-013 and
ultimate machine e
Co., Ltd. 2017-031
controller acceptan
ce
Other enterprise
Juchao
Sichuan control under the 30 March
Spot Website(www.cninfo.com.cn)
Changhong same controlling Sales of Marketi 2017; 5
53 Food 5.97 5.97 0.00% 8,000 N exchang -- Notice No.: 2017-010,
Property shareholder and goods ng price May
e 2017-011, 2017-013 and
Co., Ltd. ultimate
2017-031
controller
Other enterprise
Sichuan Juchao
control under the 30 March
Changhong Spot Website(www.cninfo.com.cn)
same controlling Sales of Marketi 2017; 5
54 Network Food 8.71 8.71 0.00% 8,000 N exchang -- Notice No.: 2017-010,
shareholder and goods ng price May
Technology e 2017-011, 2017-013 and
ultimate
Co., Ltd. 2017-031
controller
Sichuan Other enterprise
Juchao
Changhong control under the 30 March
Spot Website(www.cninfo.com.cn)
Intelligent same controlling Sales of Marketi 2017; 5
55 Food 0.36 0.36 0.00% 8,000 N exchang -- Notice No.: 2017-010,
Health shareholder and goods ng price May
e 2017-011, 2017-013 and
Technology ultimate
2017-031
Co., Ltd. controller
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
Other enterprise
Sichuan Juchao
control under the 30 March
Changhong Spot Website(www.cninfo.com.cn)
same controlling Sales of Marketi 2017; 5
56 Property Air-conditioner 2.05 2.05 0.00% 8,000 N exchang -- Notice No.: 2017-010,
shareholder and goods ng price May
Service Co., e 2017-011, 2017-013 and
ultimate
Ltd. 2017-031
controller
Other enterprise
Juchao
Sichuan control under the 30 March
Spot Website(www.cninfo.com.cn)
Huanyu same controlling Sales of Marketi 2017; 5
57 Food 12.10 12.10 0.00% 8,000 N exchang -- Notice No.: 2017-010,
Industrial shareholder and goods ng price May
e 2017-011, 2017-013 and
Co. Ltd. ultimate
2017-031
controller
Other enterprise
Sichuan Spot Juchao
control under the 30 March
Changhong Sheet metal exchang Website(www.cninfo.com.cn)
same controlling Sales of Marketi 2017; 5
58 Xinrui parts, plastic 1.89 1.89 0.00% 8,000 N e, Bank -- Notice No.: 2017-010,
shareholder and goods ng price May
Technology parts etc. acceptan 2017-011, 2017-013 and
ultimate
Co., Ltd ce 2017-031
controller
Other enterprise
Juchao
control under the 30 March
Spot Website(www.cninfo.com.cn)
OrionPDPC same controlling Sales of Marketi 2017; 5
59 Refrigerator 961.52 961.52 0.11% 8,000 N exchang -- Notice No.: 2017-010,
o.,ltd shareholder and goods ng price May
e 2017-011, 2017-013 and
ultimate
2017-031
controller
Sichuan Other enterprise
Juchao
Changhong control under the 30 March
Spot Website(www.cninfo.com.cn)
Intelligent same controlling Sales of Marketi 2017; 5
60 Food 1.12 1.12 0.00% 8,000 N exchang -- Notice No.: 2017-010,
Manufacturi shareholder and goods ng price May
e 2017-011, 2017-013 and
ng ultimate
2017-031
Technology controller
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
Co., Ltd.
Mianyang Other enterprise
Juchao
Technology control under the 30 March
Spot Website(www.cninfo.com.cn)
Town Big same controlling Sales of Marketi 2017; 5
61 Food 0.29 0.29 0.00% 8,000 N exchang -- Notice No.: 2017-010,
Data shareholder and goods ng price May
e 2017-011, 2017-013 and
Technology ultimate
2017-031
Co., Ltd. controller
Other enterprise
Juchao
BVCH control under the 30 March
Spot Website(www.cninfo.com.cn)
Optronics same controlling Sales of Marketi 2017; 5
62 Food 1.28 1.28 0.00% 8,000 N exchang -- Notice No.: 2017-010,
(Sichuan) shareholder and goods ng price May
e 2017-011, 2017-013 and
Co., Ltd. ultimate
2017-031
controller
Other enterprise
Sichuan Juchao
control under the 30 March
Changhong Spot Website(www.cninfo.com.cn)
same controlling Sales of Marketi 2017; 5
63 Electronic Food 9.04 9.04 0.00% 8,000 N exchang -- Notice No.: 2017-010,
shareholder and goods ng price May
Products e 2017-011, 2017-013 and
ultimate
Co., Ltd. 2017-031
controller
Other enterprise
Sichuan Juchao
control under the 30 March
Changhong Spot Website(www.cninfo.com.cn)
same controlling Sales of Marketi 2017; 5
64 Group Food 1.59 1.59 0.00% 8,000 N exchang -- Notice No.: 2017-010,
shareholder and goods ng price May
Finance Co., e 2017-011, 2017-013 and
ultimate
Ltd. 2017-031
controller
Sichuan Other enterprise Bank 30 March Juchao
Sales of Marketi
65 Changhong control under the Air-conditioner 1.76 1.76 0.00% 8,000 N acceptan -- 2017; 5 Website(www.cninfo.com.cn)
goods ng price
Package same controlling ce May Notice No.: 2017-010,
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
Printing shareholder and 2017 2017-011, 2017-013 and
Co., Ltd. ultimate 2017-031
controller
Other enterprise
Juchao
Sichuan control under the 30 March
Spot Website(www.cninfo.com.cn)
Changhong same controlling Sales of Air-conditioner Marketi 2017; 5
66 35.17 35.17 0.00% 8,000 N exchang -- Notice No.: 2017-010,
Battery Co., shareholder and goods component ng price May
e 2017-011, 2017-013 and
Ltd ultimate
2017-031
controller
Other enterprise
Sichuan Juchao
control under the 30 March
Changhong Spot Website(www.cninfo.com.cn)
same controlling Sales of Marketi 2017; 5
67 Education Air-conditioner 1.63 1.63 0.00% 8,000 N exchang -- Notice No.: 2017-010,
shareholder and goods ng price May
Technology e 2017-011, 2017-013 and
ultimate
Co., Ltd. 2017-031
controller
Other enterprise
Juchao
control under the 30 March
081 Spot Website(www.cninfo.com.cn)
same controlling Sales of Marketi 2017; 5
68 Electronic Air-conditioner 4.46 4.46 0.00% 8,000 N exchang -- Notice No.: 2017-010,
shareholder and goods ng price May
Group e 2017-011, 2017-013 and
ultimate
2017-031
controller
Other enterprise
Guangyuan Juchao
control under the 30 March
Changhong Spot Website(www.cninfo.com.cn)
same controlling Sales of Marketi 2017; 5
69 Electronic Air-conditioner 39.05 39.05 0.00% 8,000 N exchang -- Notice No.: 2017-010,
shareholder and goods ng price May
Technology e 2017-011, 2017-013 and
ultimate
Co., Ltd. 2017-031
controller
Sichuan Other enterprise Spot 30 March Juchao
Sales of Marketi
70 Ilink control under the Air-conditioner 19.22 19.22 0.00% 8,000 N exchang -- 2017; 5 Website(www.cninfo.com.cn)
goods ng price
Technology same controlling e May Notice No.: 2017-010,
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
Co., Ltd. shareholder and 2017 2017-011, 2017-013 and
ultimate 2017-031
controller
Other enterprise
Sichuan Juchao
control under the 30 March
Changhong Spot Website(www.cninfo.com.cn)
same controlling Sales of Marketi 2017; 5
71 Innovation Food 0.02 0.02 0.00% 8,000 N exchang -- Notice No.: 2017-010,
shareholder and goods ng price May
Investment e 2017-011, 2017-013 and
ultimate
Co., Ltd. 2017-031
controller
Other enterprise
Juchao
Guangyuan control under the 30 March
Spot Website(www.cninfo.com.cn)
Hongcheng same controlling Sales of Marketi 2017; 5
72 Food 0.10 0.10 0.00% 8,000 N exchang -- Notice No.: 2017-010,
Industrial shareholder and goods ng price May
e 2017-011, 2017-013 and
Co., Ltd. ultimate
2017-031
controller
Other enterprise
Sichuan Juchao
control under the 30 March
Changhong Spot Website(www.cninfo.com.cn)
same controlling Sales of Marketi 2017; 5
73 Solar Food 0.12 0.12 0.00% 8,000 N exchang -- Notice No.: 2017-010,
shareholder and goods ng price May
Technology e 2017-011, 2017-013 and
ultimate
Co., Ltd. 2017-031
controller
Other enterprise
Sichuan Juchao
control under the 30 March
Changhong Spot Website(www.cninfo.com.cn)
same controlling Sales of Marketi 2017; 5
74 Electronic Food 0.42 0.42 0.00% 8,000 N exchang -- Notice No.: 2017-010,
shareholder and goods ng price May
Technology e 2017-011, 2017-013 and
ultimate
Co., Ltd. 2017-031
controller
Sichuan Other enterprise Spot 30 March Juchao
Sales of Marketi
75 Hongxin control under the Food 0.62 0.62 0.00% 8,000 N exchang -- 2017; 5 Website(www.cninfo.com.cn)
goods ng price
Software same controlling e May Notice No.: 2017-010,
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
Co., Ltd. shareholder and 2017 2017-011, 2017-013 and
ultimate 2017-031
controller
Other enterprise
Juchao
Sichuan control under the 30 March
Spot Website(www.cninfo.com.cn)
Hongcheng same controlling Sales of Marketi 2017; 5
76 Food 0.75 0.75 0.00% 8,000 N exchang -- Notice No.: 2017-010,
Real Estate shareholder and goods ng price May
e 2017-011, 2017-013 and
Co., Ltd. ultimate
2017-031
controller
Other enterprise
Sichuan Juchao
control under the 30 March
Changhong Spot Website(www.cninfo.com.cn)
same controlling Sales of Air-conditioner, Marketi 2017; 5
77 New Energy 64.70 64.70 0.01% 8,000 N exchang -- Notice No.: 2017-010,
shareholder and goods Food ng price May
Technology e 2017-011, 2017-013 and
ultimate
Co., Ltd. 2017-031
controller
Other enterprise
Sichuan Juchao
control under the 30 March
Changhong Spot Website(www.cninfo.com.cn)
same controlling Sales of Marketi 2017; 5
78 Electronic Food 3.23 3.23 0.00% 8,000 N exchang -- Notice No.: 2017-010,
shareholder and goods ng price May
System Co., e 2017-011, 2017-013 and
ultimate
Ltd. 2017-031
controller
Sichuan Other enterprise
Juchao
Changhong control under the 30 March
Spot Website(www.cninfo.com.cn)
Precision same controlling Sales of Marketi 2017; 5
79 Food 8.86 8.86 0.00% 8,000 N exchang -- Notice No.: 2017-010,
Electronics shareholder and goods ng price May
e 2017-011, 2017-013 and
Tech. Co., ultimate
2017-031
Ltd. controller
Changhong Other enterprise Spot 30 March Juchao
Sales of Marketi
80 Internationa control under the Food 0.05 0.05 0.00% 15,000 N exchang -- 2017; 5 Website(www.cninfo.com.cn)
goods ng price
l Holdings same controlling e May Notice No.: 2017-010,
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
(H.K.) shareholder and 2017 2017-011, 2017-013 and
Limited ultimate 2017-031
controller
Other enterprise
Juchao
Guangdong control under the Providi 30 March
Spot Website(www.cninfo.com.cn)
Changhong same controlling ng fuel Water and Marketi 2017; 5
81 5.17 5.17 0.00% 8,000 N exchang -- Notice No.: 2017-010,
Electronics shareholder and and electricity fee ng price May
e 2017-011, 2017-013 and
Co., Ltd. ultimate power
2017-031
controller
Other enterprise
Sichuan Spot Juchao
control under the Providi 30 March
Changhong exchang Website(www.cninfo.com.cn)
same controlling ng fuel Water and Marketi 2017; 5
82 Minsheng 1.08 1.08 0.00% 8,000 N e, Bank -- Notice No.: 2017-010,
shareholder and and electricity fee ng price May
Logistics acceptan 2017-011, 2017-013 and
ultimate power
Co., LTD ce 2017-031
controller
Other enterprise
Juchao
Sichuan control under the Providi 30 March
Spot Website(www.cninfo.com.cn)
Hongwei same controlling ng fuel Water and Marketi 2017; 5
83 0.01 0.01 0.00% 8,000 N exchang -- Notice No.: 2017-010,
Technology shareholder and and electricity fee ng price May
e 2017-011, 2017-013 and
Co., Ltd. ultimate power
2017-031
controller
Other enterprise
Sichuan Juchao
control under the Providi 30 March
Changhong Bank Website(www.cninfo.com.cn)
same controlling ng fuel Water and Marketi 2017; 5
84 Device 33.34 33.34 0.00% 8,000 N acceptan -- Notice No.: 2017-010,
shareholder and and electricity fee ng price May
Technology ce 2017-011, 2017-013 and
ultimate power
Co., Ltd. 2017-031
controller
Sichuan Other enterprise Providi Bank 30 March Juchao
Water and Marketi
85 Changhong control under the ng fuel 1.38 1.38 0.00% 8,000 N acceptan -- 2017; 5 Website(www.cninfo.com.cn)
electricity fee ng price
Jijia Fine same controlling and ce May Notice No.: 2017-010,
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
Co., Ltd. shareholder and power 2017 2017-011, 2017-013 and
ultimate 2017-031
controller
Other enterprise
Sichuan Juchao
control under the Providi 30 March
Changhong Bank Website(www.cninfo.com.cn)
same controlling ng fuel Water and Marketi 2017; 5
86 Mold Plastic 203.04 203.04 0.02% 8,000 N acceptan -- Notice No.: 2017-010,
shareholder and and electricity fee ng price May
Tech. Co., ce 2017-011, 2017-013 and
ultimate power
Ltd. 2017-031
controller
Other enterprise
Juchao
Hefei control under the Providi 30 March
Spot Website(www.cninfo.com.cn)
Changhong same controlling ng fuel Water and Marketi 2017; 5
87 0.97 0.97 0.00% 8,000 N exchang -- Notice No.: 2017-010,
Industrial shareholder and and electricity fee ng price May
e 2017-011, 2017-013 and
Co., Ltd. ultimate power
2017-031
controller
Sichuan Other enterprise
Juchao
Changhong control under the Providi 30 March
Spot Website(www.cninfo.com.cn)
Precision same controlling ng fuel Water and Marketi 2017; 5
88 0.2 0.2 0.00% 8,000 N exchang -- Notice No.: 2017-010,
Electronics shareholder and and electricity fee ng price May
e 2017-011, 2017-013 and
Tech. Co., ultimate power
2017-031
Ltd. controller
Sichuan
Other enterprise
Service Juchao
control under the Providi 30 March
Exp. Spot Website(www.cninfo.com.cn)
same controlling ng fuel Water and Marketi 2017; 5
89 Appliance 0.23 0.23 0.00% 8,000 N exchang -- Notice No.: 2017-010,
shareholder and and electricity fee ng price May
Service e 2017-011, 2017-013 and
ultimate power
Chain Co., 2017-031
controller
Ltd.
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
Other enterprise
Juchao
Sichuan control under the Rent to 30 March
Bank Website(www.cninfo.com.cn)
Changhong same controlling the Plants, Marketi 2017; 5
90 26.07 26.07 0.35% 5,000 N acceptan -- Notice No.: 2017-010,
Jijia Fine shareholder and related travelling crane ng price May
ce 2017-011, 2017-013 and
Co., Ltd. ultimate party
2017-031
controller
Other enterprise
Sichuan Juchao
control under the Rent to Plants, 30 March
Changhong Bank Website(www.cninfo.com.cn)
same controlling the apartment, Marketi 2017; 5
91 Mold Plastic 111.74 111.74 1.48% 5,000 N acceptan -- Notice No.: 2017-010,
shareholder and related equipment ng price May
Tech. Co., ce 2017-011, 2017-013 and
ultimate party machinery
Ltd. 2017-031
controller
Other enterprise
Sichuan Spot Juchao
control under the Rent to Part of the 30 March
Changhong exchang Website(www.cninfo.com.cn)
same controlling the office rental, Marketi 2017; 5
92 Minsheng 52.47 52.47 0.70% 5,000 N e, Bank -- Notice No.: 2017-010,
shareholder and related warehousing ng price May
Logistics acceptan 2017-011, 2017-013 and
ultimate party lease
Co., LTD ce 2017-031
controller
Sichuan
Other enterprise
Service Juchao
control under the Rent to 30 March
Exp. Spot Website(www.cninfo.com.cn)
same controlling the Marketi 2017; 5
93 Appliance Apartment 10.65 10.65 0.14% 5,000 N exchang -- Notice No.: 2017-010,
shareholder and related ng price May
Service e 2017-011, 2017-013 and
ultimate party
Chain Co., 2017-031
controller
Ltd.
Sichuan Other enterprise Spot Juchao
Rent to 30 March
Changhong control under the exchang Website(www.cninfo.com.cn)
the Warehousing Marketi 2017; 5
94 Xinrui same controlling 1.69 1.69 0.02% 8,000 N e, Bank -- Notice No.: 2017-010,
related leasing, forklift ng price May
Technology shareholder and acceptan 2017-011, 2017-013 and
party
Co., Ltd ultimate ce 2017-031
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
controller
Other enterprise
Juchao
Hefei control under the Rent to 30 March
Spot Website(www.cninfo.com.cn)
Changhong same controlling the Marketi 2017; 5
95 Apartment 8.77 8.77 0.12% 5,000 N exchang -- Notice No.: 2017-010,
Industrial shareholder and related ng price May
e 2017-011, 2017-013 and
Co., Ltd. ultimate party
2017-031
controller
Sichuan Other enterprise
Juchao
Changhong control under the Rent to 30 March
Bank Website(www.cninfo.com.cn)
Precision same controlling the Marketi 2017; 5
96 Apartment 1.57 1.57 0.02% 5,000 N acceptan -- Notice No.: 2017-010,
Electronics shareholder and related ng price May
ce 2017-011, 2017-013 and
Tech. Co., ultimate party
2017-031
Ltd. controller
Other enterprise
Juchao
BVCH control under the Rent to 30 March
Spot Website(www.cninfo.com.cn)
Optronics same controlling the Marketi 2017; 5
97 Freight elevator 5.25 5.25 0.07% 5,000 N exchang -- Notice No.: 2017-010,
(Sichuan) shareholder and related ng price May
e 2017-011, 2017-013 and
Co., Ltd. ultimate party
2017-031
controller
Other enterprise
Juchao
Guangdong control under the Rent to 30 March
Spot Website(www.cninfo.com.cn)
Changhong same controlling the Part of the Marketi 2017; 5
98 5.96 5.96 0.08% 5,000 N exchang -- Notice No.: 2017-010,
Electronics shareholder and related office rental ng price May
e 2017-011, 2017-013 and
Co., Ltd. ultimate party
2017-031
controller
Sichuan Other enterprise Rent to Spot 30 March Juchao
Marketi
99 Changhong control under the the Plant 46.35 46.35 0.62% 5,000 N exchang -- 2017; 5 Website(www.cninfo.com.cn)
ng price
Device same controlling related e May Notice No.: 2017-010,
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
Technology shareholder and party 2017 2017-011, 2017-013 and
Co., Ltd. ultimate 2017-031
controller
Other enterprise
Juchao
Sichuan control under the Rent to 30 March
Spot Website(www.cninfo.com.cn)
Hongwei same controlling the Marketi 2017; 5
100 Plant 3.52 3.52 0.05% 5,000 N exchang -- Notice No.: 2017-010,
Technology shareholder and related ng price May
e 2017-011, 2017-013 and
Co., Ltd. ultimate party
2017-031
controller
Sichuan
Rent Juchao
Changhong Controlling 30 March
from Spot Website(www.cninfo.com.cn)
Electronics shareholder and Marketi 2017; 5
101 the Shops 3.66 3.66 0.05% 4,000 N exchang -- Notice No.: 2017-010,
Holding ultimate ng price May
related e 2017-011, 2017-013 and
Group Co., controller
party 2017-031
Ltd.
Other enterprise
Sichuan Rent Juchao
control under the 30 March
Changhong from Spot Website(www.cninfo.com.cn)
same controlling Marketi 2017; 5
102 Property the Plant and office 92.15 92.15 1.22% 4,000 N exchang -- Notice No.: 2017-010,
shareholder and ng price May
Service Co., related e 2017-011, 2017-013 and
ultimate
Ltd. party 2017-031
controller
Other enterprise
Rent Juchao
Guangdong control under the 30 March
from Spot Website(www.cninfo.com.cn)
Changhong same controlling The staff Marketi 2017; 5
103 the 3.57 3.57 0.05% 5,000 N exchang -- Notice No.: 2017-010,
Electronics shareholder and dormitory ng price May
related e 2017-011, 2017-013 and
Co., Ltd. ultimate
party 2017-031
controller
Chengdu Other enterprise Rent Spot 30 March Juchao
Marketi
104 Changhong control under the from Office 16.48 16.48 0.22% 5,000 N exchang -- 2017; Website(www.cninfo.com.cn)
ng price
Electronic same controlling the e 5 May Notice No.: 2017-010,
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
Technology shareholder and related 2017 2017-011, 2017-013 and
Co., Ltd. ultimate party 2017-031
controller
Rent Spot Juchao
Sichuan Controlling 30 March
from exchang Website(www.cninfo.com.cn)
Changhong shareholder and Marketi 2017; 5
105 the Plant and office 59.45 59.45 0.79% 5,000 N e, Bank -- Notice No.: 2017-010,
Electric Co., ultimate ng price May
related acceptan 2017-011, 2017-013 and
Ltd. controller
party ce 2017-031
Spot Juchao
Sichuan Controlling Purchas 30 March
exchang Website(www.cninfo.com.cn)
Changhong shareholder and ing Information Marketi 2017; 5
106 2.50 2.50 0.02% 5,000 N e, Bank -- Notice No.: 2017-010,
Electric Co., ultimate fixed system ng price May
acceptan 2017-011, 2017-013 and
Ltd. controller assets
ce 2017-031
Sichuan
Other enterprise
Changhong Spot Juchao
control under the Purchas 30 March
Intelligent exchang Website(www.cninfo.com.cn)
same controlling ing Reform of Marketi 2017; 5
107 Manufacturi 1,362.92 1,362.92 10.51% 4,000 N e, Bank -- Notice No.: 2017-010,
shareholder and fixed production line ng price May
ng acceptan 2017-011, 2017-013 and
ultimate assets
Technology ce 2017-031
controller
Co., Ltd.
Other enterprise
Juchao
Sichuan control under the Purchas 30 March
Spot Website(www.cninfo.com.cn)
Hongxin same controlling ing Information Marketi 2017; 5
108 189.55 189.55 1.46% 5,000 N exchang -- Notice No.: 2017-010,
Software shareholder and fixed system etc. ng price May
e 2017-011, 2017-013 and
Co., Ltd. ultimate assets
2017-031
controller
Sichuan Other enterprise Purchas 30 March Juchao
Spot
Hongcheng control under the ing Plant Marketi 2017; 5 Website(www.cninfo.com.cn)
109 368.89 368.89 2.84% 4,000 N exchang --
Constructio same controlling fixed construction ng price May Notice No.: 2017-010,
e
n shareholder and assets 2017 2017-011, 2017-013 and
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
Engineering ultimate 2017-031
Co., Ltd. controller
Other enterprise
Juchao
Sichuan control under the Purchas 30 March
Spot Website(www.cninfo.com.cn)
Hongcheng same controlling ing Plant Marketi 2017; 5
110 50.94 50.94 0.39% 4,000 N exchang -- Notice No.: 2017-010,
Real Estate shareholder and fixed construction ng price May
e 2017-011, 2017-013 and
Co., Ltd. ultimate assets
2017-031
controller
Total -- - 363,840.31 - - - -- -- -- --
Detail of sales return with major amount involved --
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 2017 was RMB 1250 million at most (tax-excluded), actually
RMB 784,042,600 occurred in reporting period.
2. It is estimated that the related transaction amount resulted by purchasing goods (including compressor purchased etc.) from Huayi Compressor
and its subsidiary by the Company for year of 2017 was RMB 600 million at most (tax-excluded), actually RMB 229,544,600 occurred in reporting
period.
3. It is estimated that the related transaction amount resulted by purchasing or selling equipment, software, maintenance and spare parts and molds
etc. from Sichuan Changhong and its subsidiary by the Company for year of 2017 was RMB 50 million at most (tax-excluded), actually RMB
Report the actual implementation of the daily related transactions which 1,920,500 occurred in reporting period
were projected about their total amount by types during the reporting 4. It is estimated that the related transaction amount resulted by purchasing goods from and providing fuel and power to Sichuan Changhong and
period (if applicable) its subsidiary by the Company for year of 2017 was RMB 4720 million at most (tax-excluded), actually RMB 2,198,890,100 occurred in reporting
period
5. It is estimated that the related transaction amount resulted by purchasing compressed air, accepting energy, power and service from Huayi
Compressor and its subsidiary by the Company for year of 2017 was RMB 650,000 at most (tax-excluded), actually RMB 0 occurred in reporting
period
6. It is estimated that the related transaction amount resulted by leasing business from Sichuan Changhong and its subsidiary by the Company for
year of 2017 was RMB 50 million at most (tax-excluded), actually RMB 3,518,500 occurred in reporting period
7. It is estimated that the related transaction amount from domestic finished goods logistic business outsourcing and transportation, storage, loading
and unloading to Sichuan Changhong Minsheng Logistic Co., Ltd. by the Company for year of 2017 was RMB 550 million at most (tax-excluded),
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
actually RMB 251,485,000 occurred in reporting period
8. 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 2017 was RMB 200 million at most (tax-excluded), actually RMB 73,918,900 occurred in
reporting period.
9. 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 2017 was RMB 50 million at most (tax-excluded), actually RMB
9,735,800 occurred in reporting period
10. It is estimated that the related transaction amount resulted by selling goods from Sichuan Changhong Electronics Holding Group and its
subsidiary by the Company for year of 2017 was RMB 80 million at most (tax-excluded), actually RMB 8,939,500 occurred in reporting period.
11. 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 Group and its subsidiary by the Company for year of 2017 was RMB 110 million at most
(tax-excluded), actually RMB 76,407,600 occurred in reporting period.
Reasons for major differences between trading price and market
Not applicable
reference price
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
(2) Related transactions with Changhong Finance Company
The resolution of the 18th meeting of the 8th Board of Directors and the 1st Extraordinary
Shareholders' General Meeting of 2016 that the company held on March 18, 2016, April 16, 2016
approved and agreed the company to continue carry out the financial service cooperation with
Sichuan Changhong Group Finance Co., Ltd. (hereinafter referred to as ―Changhong Finance
Company‖) and sign a triennial Financial Service Agreement. In accordance with the agreement,
Changhong Finance Company shall provide a series of financial services such as deposit and loan
in its business scope according to the requirements of the Company and its subsidiaries. The
related transactions between the company and its subsidiaries and Changhong Finance Company
from the beginning of the year to the end of the reporting period are as follows:
As of June 30, 2017, the Company and its subsidiaries have carried out deposit, opening of
bills and notes discounted businesses with Changhong Finance Company. The Company and its
subsidiaries had balances of deposits of RMB 1,905,236,221.16 in Changhong Finance Company,
accounting for 29.05% of the balance of deposits absorbed by Changhong Finance Company,
which was less than 30%, the balance of notes was RMB 1,179,397,608.68 and the notes
discounted balance was RMB1,315,380,817.24. Details are as follows:
In RMB/CNY
Interest and
Balance at
Item Increase in the year Decrease in the year Ending balance commission charge
year-begin
received or paid
I. Savings in
Changhong Group 1,908,842,163.20 10,826,995,162.70 10,830,601,104.74 1,905,236,221.16 15,976,164.79
Finance Company
II. Borrowings
from Changhong
-
Group Finance
Company
1.Short-term loans - - - - -
2.Long-term loans - - - - -
III. Other financial
-
business
1.notes drawing 544,374,441.19 1,238,581,673.56 603,558,506.07 1,179,397,608.68 283,104.31
2.notes discounted 565,252,574.29 1,231,248,889.55 481,120,646.60 1,315,380,817.24 11,944,312.93
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
According to the regulation of Information Disclosure Business Memorandum No. 2 -
Transactions and Related Transactions of the Shenzhen Stock Exchange, the company issued the
Risk Continuous Assessment Report About Sichuan Changhong Group Finance Co., Ltd. for the
deposit, loan and other financial services that the company carried out with Changhong Finance
Company during the reporting period, and disclosed at www.cninfo.com.cn on August 10, 2017.
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
The Company has no material related transaction of jointly foreign investment occurred in
reporting period-end.
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. Other related transactions
□ Applicable √ Not applicable
Nil
XIII. Non-business capital occupying by controlling shareholders and its related parties
□ Applicable √ Not applicable
No non-business capital occupied by controlling shareholders and its related parties in Period.
XIV. Significant contract and implementations
1. Entrust, contract and leasing
(1) Entrust
□ Applicable √ Not applicable
No entrust in Period.
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
(2) Contract
□ Applicable √ Not applicable
No contract in Period.
(3) Leasing
√ Applicable □ Not applicable
Operational leasing of the Company please found more details in ―investment real estate‖,
―fixed assets‖, ―Lease of related party‖ and ―Rent of related party‖ in Note of Financial Statement.
Gains/losses to the Company from projects that reached over 10% in total profit of the
Company in reporting period
□ Applicable √ Not applicable
No gains or losses to the Company from projects that reached over 10% in total profit of the
Company in reporting period.
2. Material guarantee
√ Applicable □ Not applicable
(1) Guarantee
During the reporting period, the guarantees that the company provides for its wholly-owned
and holding subsidiaries are for the loans generated by supporting their production and operation,
the guaranty type is assurance; the guarantees that the company and subsidiaries provide for the
distributors are to provide joint liability guarantees for the high quality distributors conforming to
certain conditions within the line of credit of designated banks, the E-bank acceptance bills opened
under this line of credit are all used for the distributors to pay the purchase payment for goods to
the Company and subsidiaries, aiming to promote the company’s channel business development,
strengthen the good cooperative relationship between the company and the downstream
distributors, and effectively stimulate the company and its subsidiaries’ sales growth.
Up to June 30, 2017, the company has granted credit to the guarantees of some wholly-owned
and holding subsidiaries, in addition to the wholly-owned subsidiary Changhong Air-conditioner,
other subsidiaries have actual guarantee; meanwhile, the company and its subsidiaries have granted
credit to the guarantees of some high quality distributors, the balance of guarantees is within the
line of credit. The external guarantees of the Company and subsidiaries are as follows:
In 10 thousand Yuan
Particulars about the external guarantee of the Company (Barring the guarantee for subsidiaries)
Name of the Related Announcement Guarantee Actual date of Actual Guarant Complete Guarantee
Guarantee type
Company disclosure date limit happening (Date of guarantee ee term implement for related
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
guaranteed signing agreement) limit ation or party
not
Notice No.:
2015-038,No.: 2015-040
and No.: 2015-064 on 29
August 2015 and 23
Dealer of Hefei Joint liability One
December 2015 20,000 29 Sept. 2016 1,229.81 N N
Meiling Co., Ltd. guaranty year
Notice No.: 2016-068,
2016-072, 2016-077 on
26 Nov. 2016 and 14
Dec.:
Notice No.:
2015-038,No.: 2015-040
and No.: 2015-064 on 29
Dealer of Sichuan
August 2015 and 23
Changhong Joint liability One
December 2015 20,000 14 Oct. 2016 583.04 N N
Air-conditioner guaranty year
Notice No.: 2016-068,
Co., Ltd.
2016-072, 2016-077 on
26 Nov. 2016 and 14
Dec.
Total actual occurred external
Total approving external guarantee in report
0 guarantee in report period 1,812.85
period (A1)
(A2)
Total actual balance of
Total approved external guarantee at the end
40,000 external guarantee at the end 533.16
of report period ( A3)
of report period (A4)
Guarantee between the Company and the subsidiaries
Complete
Name of the Actual date of Actual Guarantee
Related Announcement Guarantee Guarant implement
Company happening (Date of guarantee Guarantee type for related
disclosure date limit ee term ation or
guaranteed signing agreement) limit party
not
Notice No.: 2015-003,
55,000 17,000 Joint liability One
2015-007, 2015-015 on 30 Dec. 2015 Y N
（note 2） guaranty year
26 Mar. 2015 and 18 Apr.
Joint liability One
Notice No.: 2016-027, 5 Aug. 2016 5,000 N N
guaranty year
2016-031, 2016-046 on 56,500
Zhongshan
Joint liability One
Changhong 25 Mar. 2016 and 5 May 28 Oct. 2016 5,000 N N
guaranty year
Electric Co., LTD
Joint liability One
24 Feb. 2017 6,000 N N
30 March 2017; 5 May guaranty year
2017 ; Notice No.:
70,000 Joint liability One
2017-010, 2017-014, 22 Jan. 2017 5,500 N N
guaranty year
2017-031
1 Mar. 2017 20,000 Joint liability One N N
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
guaranty year
Joint liability One
23 Jun. 2017 10,000 N N
guaranty year
Joint liability One
Notice No.: 2016-027, 5 May 2016 4,500 N N
guaranty year
2016-031, 2016-046 on 8,500
Guangdong Joint liability One
25 Mar. 2016 and 5 May 1 Sept. 2016 2,000 N N
Changhong Ridian guaranty year
Technology Co., 30 March 2017; 5 May
Ltd. 2017; Notice No.: Joint liability One
10,500 13 Jun. 2017 2,000 N N
2017-010, 2017-014, guaranty year
2017-031
Zhongke Meiling 30 March 2017; 5 May Joint liability One
16 Feb. 2017 2,000 N N
Cryogenic 2017; Notice No.: guaranty year
6,000
Technology Co., 2017-010, 2017-014, Joint liability One
23 Jun. 2017 1,000 N N
Ltd. 2017-031 guaranty year
Sichuan 30 March 2017; 5 May
Changhong 2017; Notice No.:
30,000 - - - - - -
Air-conditioner 2017-010, 2017-014,
Co., Ltd. 2017-031
Total amount of actual
Total amount of approving guarantee for occurred guarantee for
116,500 63,000
subsidiaries in report period (B1) subsidiaries in report period
(B2)
Total balance of actual
Total amount of approved guarantee for
guarantee for subsidiaries at
subsidiaries at the end of reporting period 181,500 63,000
the end of reporting period
(B3)
(B4)
Guarantee of the subsidiaries for the subsidiaries
Complete
Name of the Actual date of Actual Guarantee
Related Announcement Guarantee Guarant implement
Company happening (Date of guarantee Guarantee type for related
disclosure date limit ee term ation or
guaranteed signing agreement) limit party
not
-- -- -- -- -- -- -- -- --
Total amount of actual
Total amount of approving guarantee for occurred guarantee for
-- --
subsidiaries in report period (C1) subsidiaries in report period
(C2)
Total balance of actual
Total amount of approved guarantee for
guarantee for subsidiaries at
subsidiaries at the end of reporting period -- --
the end of reporting period
(C3)
(C4)
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
Total amount of guarantee of the Company( total of three abovementioned guarantee)
Total amount of actual
Total amount of approving guarantee in report
116,500 occurred guarantee in report 64,812.85
period (A1+B1+C1)
period (A2+B2+C2)
Total balance of actual
Total amount of approved guarantee at the
221,500 guarantee at the end of report 63,533.16
end of report period (A3+B3+C3)
period (A4+B4+C4)
Ratio of actual guarantee (A4+B4+C4) in net assets of the Company 12.41%
Including:
Amount of guarantee for shareholders, actual controller and its related parties(D)
The debts guarantee amount provided for the guaranteed parties whose
51,500
assets-liability ratio exceed 70% directly or indirectly(E)
Proportion of total amount of guarantee in net assets of the Company exceed
50%(F)
Total amount of the aforesaid three guarantees(D+E+F) 51,500
Explanations on possibly bearing joint and several liquidating responsibilities for
N/A
undue guarantees (if applicable)
Explanations on external guarantee against regulated procedures (if applicable) N/A
The above guarantees are all wholly-owned and holding subsidiaries of the Company.
Production and operation of these wholly-owned and holding subsidiaries was normal with no
overdue unpaid loans and guarantee risk is controllable. During the reporting period, the highest
level of security the Company provided amounted to 1165 million Yuan by the approval, the actual
amount of guarantee is 630 million Yuan. The highest level of security the Company and
subsidiaries provided outside amounted to 400 million Yuan by the approval, the actual amount of
guarantee is 18.1285 million Yuan. At the end of the reporting period, the practical guarantee
balance amounted to 635.3316 million Yuan, accounting for the Company’s latest net assets ratio
of 12.41%.
Explanation on guarantee with composite way: Nil
(2) Guarantee outside against the regulation
□Applicable √Not applicable
No guarantee outside against the regulation in Period.
4. Other material contracts
√Applicable □Not applicable
(1)On 21 March 2017, the Company signed the Strategic Cooperation Framework Agreement
(hereinafter referred to as Cooperation Agreement) with Italy Candy Hoover Group S.r.l. and
Candy S.p.A.(together named as Candy Group). Both parties followed the principles of strategic
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
win-win and giving full play to the synergistic effects of products and resources, and planned to
establish strategic partnership in refrigerator (freezer), washing machine business areas by friendly
negotiation, expand market together, promote brands, and maximize the commercial value and
social value. See details on ―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. 2017-007) on March 21, 2017.
(2)The resolution of the 29th meeting of the company’s 8th Board of Directors approved and
agreed the subsidiary Hefei Meiling Nonferrous Metal Products Co., Ltd. (hereinafter referred to
as ―Meiling Nonferrous Metal‖) to cooperate with Hefei Vanke Real Estate Co., Ltd. (hereinafter
referred to as ―Hefei Vanke Real Estate‖) for a land parcel (land area of 34.68 acres, land status is
industrial land, land certificate No. is DGY2014 No.4119) which is located at Liaoyuan Road East,
Feidong County, Hefei City and held by Meiling Nonferrous Metal, and both parties shall sign the
Project Cooperation Contract for the Land of Feidong County Meiling Nonferrous Metal Company.
Meiling Nonferrous Metal shall invest this industrial land as capital and Hefei Vanke Real Estate
shall invest in cash to establish a project company, the ratio of investments of both parties are
respectively 99% and 1%, once the project company obtains the approval (no objection in the
publicity period ) for the upgrading and reconstruction of this project from Hefei Feidong Land
Management Committee and signs the supplemental agreement about state-owned land transfer
contract with Feidong Land and Resources Bureau, Meiling Nonferrous Metal shall transfer 99%
stock rights of the project company to Hefei Vanke Real Estate, and the transfer price is about
RMB 48.65 million. See details on ―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. 2017-010, No.2017-018) on March 30, 2017.
XV. Explanation on other significant events
1. Fulfill the precise social responsibility for poverty alleviation
The Company has no precise social responsibility for poverty alleviation in the period and has
no follow-up plan either
2. Major environment protection
The listed Company and its subsidiary whether belongs to the key sewage units released from
environmental protection department: Nil
XVI. Explanation on other significant events
√ Applicable □ Not applicable
(i) On February 27, 2017, the company received a written notice from the controlling
shareholder Sichuan Changhong Electric Co., Ltd. (hereinafter referred to as ―Sichuan
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
Changhong‖), Sichuan Changhong is intended to take part of A share of the Company and the its
fruits (including capital reserve into equity, stock dividend, bonus shares, dividends, etc.) as the
subject for non-public offering of exchangeable bonds. See details on ―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. 2017-004) on February 28, 2017.
(ii) The resolution of the 29th meeting of the company’s 8th Board of Directors and the
2016 Annual General Meeting of Shareholders approved and agreed the subsidiaries to carry out
the forward exchange fund transaction business from July 1, 2017 to June 30, 2018, the business
transaction balance should not exceed USD 550 million, the single business delivery period should
be no longer than 1 year. See details on ―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. 2017-010, No. 2017-017, No. 2017-031) on March 30, 2017
and May 5, 2017.
(iii) The resolution of the 29th meeting of the company’s 8th Board of Directors approved and
agreed the company to apply for bank note pool special credit line of maximum RMB 300 million
to China Merchants Bank Co., Ltd. Hefei Branch, the credit time limit was one year, and the credit
variety was mainly used in bank note pool special business by adopting endorsement for bill
pledge. See details on ―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. 2017-010, No. 2017-019) on March 30, 2017.
(iv) On March 28 and May 4, 2017, the resolution of the 29th meeting of the company’s 8th
Board of Directors, the 15th meeting of the 8th Board of Supervisors and the 2016 Annual General
Meeting of Shareholders approved the Company’s 2016 Annual Profit Allocation Plan, at the same
time, the company’s independent directors made independent recognition opinions on the plan,
considering the interests of shareholders and company's long-term development needs, agreed the
company to take the total capital of 1,044,597,881 shares up to December 31, 2016 as the base and
distribute cash dividend of RMB 0.6 (including tax) per 10 shares to all shareholders, totally
distribute cash dividend of RMB 62,675,872.86 (including tax, cash bonus accounts for 29.06% of
the profits available for distribution that the parent company achieves in the current year). After the
distribution, the total share capital of the company remained unchanged, the remaining
accumulated undistributed profit of the parent company was RMB 893,663,321.15, and the
remaining undistributed profit was carried forward to the afterwards year for distribution.
On May 27, 2017, the company disclosed the 2016 annual profit distribution plan
implementation announcement, implemented the above-mentioned profit distribution plan. See
details on ―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.
2017-010, No. 2017-031, No.2017-033) on March 30, May 4, and May 27, 2017.
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
(v) During the reporting period, the company received the Notice of Acceptance of
Registration (ZSXZ No. [2017]SCP212) issued by National Association of Financial Market
Institutional Investors (hereinafter referred to as the ―Investor Association‖), the Investor
Association accepted the company’s registration for super short-term financing bond. See details
on ―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.
2016-068, No. 2016-073, No. 2016-077, No. 2017-046) on November 26, 2016, December 14,
2016, and July 13, 2017.
(vi) On May 25, 2017, the company received the Letter About Increasing the Holding of
Circulating Shares of Meiling from the controlling shareholder Sichuan Changhong Electric Co.,
Ltd. (hereinafter referred to as ―Sichuan Changhong‖), Sichuan Changhong and its persons acting
in concert planed to increase the holding of the Company’s issued circulating shares through
secondary market, the ratio of increased holding of shares didn’t exceed 1% of the Company’s
general capital. See details on ―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. 2017-032) on May 26, 2017. During the reporting period,
Sichuan Changhong and its persons acting in concert Changhong (Hong Kong) Trading Co., Ltd.
Have directly and indirectly increased the holding of the Company’s circulating B-shares of
2,299,574 shares through the secondary market, accounting for 0.22% of the Company’s general
capital. As of June 30, 2017, Changhong (Hong Kong) Trading Co., Ltd. totally held the
Company’s B-shares of 27,465,397 shares, accounting for 2.63% of the Company’s general capital.
XVII. Major event of the subsidiary
√ Applicable □ Not applicable
(i) The resolution of the 28th meeting of the company’s 8th Board of Directors approved and
agreed the company’s subsidiary Jiangxi Meiling Electric Appliance Co., Ltd. (Hereinafter referred
to as ―Jiangxi Meiling‖) to invest RMB206.60 million to build one million environmental and
energy saving refrigerator intelligent production line project. At the same time, in order to ensure
the smooth implementation of this investment and construction projects, agreed the company to
increase capital of RMB 200 million to Jiangxi Meiling for the project investment. See details on
―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.
2017-006) on March 14, 2017.
(ii) The resolution of the 28th meeting of the company’s 8th Board of Directors approved and
agreed the company’s subsidiary Zhongshan Changhong Electric Co., Ltd. (Hereinafter referred to
as ―Zhongshan Changhong‖) to jointly establish Zhongshan Hongyou Heating and Ventilation
Equipment Co., Ltd. (Tentative name, and ultimately subject to the name approved by the
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
industrial and commercial bureau) with Zhuhai Samyou Environmental Technology Co., Ltd.
(Hereinafter referred to as ―Samyou Environmental‖) that has superior resources of R & D,
technology, channels and overseas customers in the industry, with registered capital of RMB 40
million, of which Zhongshan Changhong invested RMB 24 million of its owned funds, while
Samyou Environmental invested RMB 16 million of its owned funds. See details on ―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. 2017-006) on March 14,
2017.
(iii) The resolution of the 29th meeting of the company’s 8th Board of Directors approved and
agreed the company to co-invest and establish Meiling Candy Washing Machine Co., Ltd. with
Candy Hoover Group S.r.l. (Hereinafter referred to as ―Candy Group‖) with registered capital of
RMB150 million, of which the company invested RMB 90 million in cash and Candy Group
invested RMB 60 million in cash. See details on ―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. 2017-010) on March 30, 2017.
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
Section VI. 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 Change
Bon Capitaliz
New
Proporti us ation of Proporti
Amount shares Others Subtotal Amount
on shar public on
issued
es reserve
I. Restricted shares 290,301,746 27.79% 0 0 0 155,625 155,625 290,457,371 27.81%
1. State-owned shares 0 0.00% 0 0 0 0 0 0 0.00%
2. State-owned legal
70,793,625 6.78% 0 0 0 0 0 70,793,625 6.78%
person’s shares
3. Other domestic shares 218,508,272 20.92% 0 0 0 155,625 155,625 218,663,897 20.94%
Including: Domestic legal
215,820,073 20.66% 0 0 0 -122,958 -122,958 215,697,115 20.65%
person’s shares
Domestic natural person’s
2,688,199 0.26% 0 0 0 278,583 278,583 2,966,782 0.29%
shares
4. Foreign shares 999,849 0.09% 0 0 0 0 0 999,849 0.09%
Including: Foreign legal
0 0.00% 0 0 0 0 0 0 0.00%
person’s shares
Foreign natural person’s
999,849 0.09% 0 0 0 0 0 999,849 0.09%
shares
II. Unrestricted shares 754,296,135 72.21% 0 0 0 -155,625 -155,625 754,140,510 72.19%
1. RMB Ordinary shares 592,431,984 56.71% 0 0 0 -155,625 -155,625 592,276,359 56.69%
2. Domestically listed
161,864,151 15.50% 0 0 0 0 0 161,864,151 15.50%
foreign shares
3. Overseas listed foreign
0 0.00% 0 0 0 0 0 0 0.00%
shares
4. Others 0 0.00% 0 0 0 0 0 0 0.00%
100.00
III. Total shares 1,044,597,881 0 0 0 0 0 1,044,597,881 100%
%
1. Reasons for share changed
√ Applicable □ Not applicable
(1) In reporting period, the new director of the 8th BOD Mr. Teng Guangsheng holds 117,600
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
shares of the Company, and the shares are lock for trading in relevant regulations since he serves
director of the Company in reporting period.
(2) In reporting period, former staff supervisor Mr. Shang Wen leaves his position without six
months, the 269,700 shares of the Company hold by Mr. Shang will not be transfer in 6 months.
2. Approval of share changed
□ Applicable √ Not applicable
3. Ownership transfer of share changed
√ Applicable □ Not applicable
In reporting period, among the restricted shares, the 122,958 shares held by former Tangshan
Dongkuang Hardware Wholesale Company are transfer to Zhang Yong.
4. 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
5. Other information necessary to disclose for the Company or need to disclosed under
requirement from security regulators
□ Applicable √ Not applicable
(II) Changes of restricted shares
√ Applicable □ Not applicable
In Share
Restricted
Shares
Opening Shares Ending
Increased Restricted
Shareholders shares released in shares Date for released
In reasons
restricted Period restricted
the
Period
On February 28, 2017, the staff who no
longer served as employee supervisor of the
Company for personal reasons cannot transfer
the Company’s stock within 6 months after
Share lockup in
leaving his post, see details on ―III The
Shang Wen 202,275 - 67,425 269,700 senior
commitments that the company’s actual
executives
controller, shareholders, related parties,
acquirers and the company have fulfilled
during the reporting period and or have not
yet fulfilled up to the end of the reporting
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
period‖ of ―Section V Important Matters‖ if
the stock held by this staff has other
restrictions.
As the directors of the company, 25% of the
Company’s stock held by them can be lifted
the restrictions each year, at the same time,
see details on ―III The commitments that the
Share lockup in company’s actual controller, shareholders,
Teng
- - 88,200 88,200 senior related parties, acquirers and the company
Guangsheng
executives have fulfilled during the reporting period and
or have not yet fulfilled up to the end of the
reporting period‖ of ―Section V Important
Matters‖ if the stock held by them has other
restrictions.
Tangshan
Transfer
Dongkuang
restricted shares
Hardware 122,958 122,958 - - 9 May 2017
to natural person
Wholesale
Zhang Yong
Company
Transfer the
restricted shares
of Tangshan
Dongkuang
Hardware
Wholesale
Zhang Yong - - 122,958 122,958 After relevant restriction procedures done
Company,
restricted for
trading due to
the legal
commitment of
shares reform
Total 325,233 122,958 278,583 480,858 -- --
II. Security offering and listing
□ Applicable √ Not applicable
III. Amount of shareholders of the Company and particulars about shares holding
In share
Total preference shareholders
Total common shareholders in reporting
66,201 with voting rights recovered at
period-end
end of reporting period (if
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
applicable)
Particulars about shares held above 5% by common shareholders or top 10 common shares holding
Number of
share
Total common Amount of Amount of
Proporti pledged/froze
Nature of on of shareholders at Changes in restricted un-restricted
n
Full name of Shareholders
shareholder shares the end of report report period common shares common shares
held State
period held held Amo
of
unt
share
Sichuan Changhong Electric Co., State-owned
22.47% 234,705,968 0 69,877,638 164,828,330 -- --
Ltd. legal person
Hefei Industry Investment Holding State-owned
4.58% 47,823,401 0 0 47,823,401 -- --
(Group) Co., Ltd. legal person
Changhong (Hong Kong) Trading Foreign legal
2.63% 27,465,397 2,299,574 0 27,465,397 -- --
Company Limited（note 1） person
Ping An Annuity Insurance
Domestic non
Company of China, Ltd. – Ping An
state-owned 2.26% 23,613,595 0 23,613,595 0 -- --
Pension Ruifu private placement
corporate
No.1 Assets Management Products
Golden Ergle- SPD-U Trust-U Trust Domestic non
JinYue No.4 Collected Asset Trust state-owned 2.26% 23,613,595 0 23,613,595 0 -- --
Plan corporate
Foreign
CAO SHENGCHUN 1.32% 13,823,183 280,976 0 13,823,183 -- --
natural person
Domestic non
Ping An UOB-Ping An
state-owned 1.20% 12,522,361 0 12,522,361 0 -- --
Bank-Guohai Securities Co., Ltd.
corporate
Ping An Bank – Ping An UOB Domestic non
Dingtai Flexible Mix Stock state-owned 1.20% 12,522,361 0 12,522,361 0 -- --
Investment Fund corporate
Caitong Fund- Ningbo
Domestic non
Bank-Haitong Xingtai (Anhui)
state-owned 1.03% 10,733,452 0 10,733,452 0 -- --
Emerging Industry Investment Fund
corporate
(Limited Partnership)
Domestic non
National Social Security Funds-504 state-owned 0.94% 9,838,998 0 9,838,998 0 -- --
corporate
Domestic non
Harvest Fund- Ping An Bank-
state-owned 0.94% 9,838,998 0 9,838,998 0 -- --
Huaxia Asset Management Co., Ltd.
corporate
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
Strategy investors or general legal person becomes
top 10 shareholders due to rights issued (if Not applicable
applicable)
Among the above shareholders, Changhong (Hong Kong) Trade Co., Ltd. is the wholly-owned
subsidiary of Sichuan Changhong Electronic Co., Ltd.; 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 Electronic Co., Ltd., Changhong (Hong Kong) Trade Co., Ltd. and other top 8
shareholders; and top ten shareholders with unrestricted subscription;
\" Ping An UOB-Ping An Bank-Guohai Securities Co., Ltd. \" and \" Ping An Bank – Ping An
Explanation on associated relationship among the UOB Dingtai Flexible Mix Stock Investment Fund \" have subscribed the products managed
aforesaid shareholders by Ping An Dahua Fund Management Co., Ltd. in the Company's non-public offering of
shares in 2016; \"―National Social Security Funds-504 ‖和―Harvest Fund- Ping An Bank-
Huaxia Asset Management Co., Ltd. ‖ have subscribed the products managed by Harvest Fund
Management Co., Ltd. in the Company's non-public offering of shares in 2016. The company
neither knows whether there is any association among other shareholders, nor knows whether
other shareholders belong to the persons acting in concert that is stipulated in the
―Administrative Measures on Information Disclosure of Changes in Shareholding of Listed
Companies‖.
Particular about top ten common shareholders with un-restrict shares held
Amount of unrestricted common shares Type of shares
Shareholders’ name
held at end of Period Type Amount
Sichuan Changhong Electric Co., Ltd. 164,828,330 RMB ordinary shares 164,828,330
Hefei Industry Investment Holding (Group) Co.,
47,823,401 RMB ordinary shares 47,823,401
Ltd.
Changhong (Hong Kong) Trading Company Domestically listed foreign
27,465,397 27,465,397
Limited shares
Domestically listed foreign
CAO SHENGCHUN 13,823,183 13,823,183
shares
Domestically listed foreign
NORGES BANK 4,546,432 4,546,432
shares
China Securities Finance Corporation Limited 4,362,500 RMB ordinary shares 4,362,500
ICBC- Dongfanghong New Dynamic Flexible
4,180,694 RMB ordinary shares 4,180,694
Mixed Investment Funds
Domestically listed foreign
Long Qinfang 3,352,737 3,352,737
shares
CMB- Dongfanghong JD Big Data Flexible Mixed
3,248,586 RMB ordinary shares 3,248,586
Investment Fund
China Industrial International Trust Limited –
2,924,398 RMB ordinary shares 2,924,398
Xingxiang Progress No.1 Securities Capital Trust
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
Plan
Among the above shareholders, Changhong (Hong Kong) Trade Co., Ltd. is the wholly-owned
subsidiary of Sichuan Changhong Electronic Co., Ltd.; there existed no associated relationship
or belong to the concerted actors as specified in the Measures for the Administration of
Expiation on associated relationship or consistent Information Disclosure of Shareholder Equity Changes of Listed Companies among Sichuan
actors within the top 10 un-restrict shareholders and Changhong Electronic Co., Ltd., Changhong (Hong Kong) and other top 8 shareholders; and
between top 10 un-restrict shareholders and top 10 top ten shareholders with unrestricted subscription; as the Company has not known whether
shareholders there exists any business relationship among the other shareholders with unrestricted
subscription or they belong to the concerted actors as specified in the Measures for the
Administration of Information Disclosure of Shareholder Equity Changes of Listed
Companies.
Explanation on top ten common shareholders
Not applicable
involving margin business (if applicable)
Note 1: At end of the reporting period, the person acting in concert with controlling
shareholder Sichuan Changhong-- Changhong (Hong Kong) Trading Company Limited, holds
B-stock of the Company as 27,465,397 shares, among which, 387,600 shares are held through
Philip Securities (H.K.) Co., Ltd.
Note 2: In the above table, \"the shareholding situation of the shareholders hold more than 5%
of shares or the top ten shareholders\" is subject to the data on stock transfer books provided by
China Securities Depository and Clearing Corporation Limited Shenzhen Branch, during the
reporting period, 7 issuing objects including Sichuan Changhong Electric Co., Ltd. , Ping An Dahua
Fund Management Co., Ltd., Golden Eagle Fund Management Co., Ltd., Harvest Fund
Management Co., Ltd., Ping An Endowment Insurance Co., Ltd., Rongtong Fund Management Co.,
Ltd., and Caitong Fund Management Co., Ltd. have subscribed the company’s non-public offering
of shares in 2016, and these shares are all restricted shares. For the number of subscribed shares of
the above-mentioned 7 issuing objects and the allocated products of other 6 issuing objects except
for Sichuan Changhong, see details on the ―Issuing report and listing announcement summary on
the non-public offering of shares of Hefei Meiling Co., Ltd.‖ (Announcement No. 2016-057) which
the company has disclosed on the designated information disclosure media \"Securities Times\",
\"China Securities Journal\", \"Hong Kong Commercial Daily\" and www.cninfo.com.cn on October
13, 2016.
Whether the top ten ordinary shareholders of the company and the top 10 ordinary
shareholders of unrestricted conditions have made the repurchase transactions as agreed during the
reporting period.
□Yes √No
The top ten ordinary shareholders of the company and the top 10 ordinary shareholders of
unrestricted conditions have not made the repurchase transactions as agreed during the reporting
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
period.
IV. Changes of controlling shareholder or actual controller
Changes of controlling shareholder in reporting period
□ Applicable √ Not applicable
No change of controlling shareholder in reporting period.
Changes of actual controller in reporting period
□ Applicable √ Not applicable
No changes of actual controller in reporting period.
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
Section VII. Preferred Stock
□ Applicable √ Not applicable
The Company had no preferred stock in the reporting period.
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
Section VIII. Particular about Directors, Supervisors and Senior
Executives
I. Changes of shares held by directors, supervisors and senior executive
□ Applicable √ Not applicable
Shares held by directors, supervisors and senior executive of the Company had no changes,
more details can be seen in Annual Report 2016.
II. Changes of directors, supervisors and senior executive
√ Applicable □ Not applicable
Name Position Type Date Reasons
He did not serves as staff supervisor of the Company for
Shang Wen Staff supervisor Office leaving 28 Feb. 2017
personal reasons
Being election by democratic election on employees
Deng Li Supervisor Election 28 Feb. 2017 congress, Mr. Deng Li agreed to elected as staff
supervisor of 8th supervisory committee of the Company
Resigned the posts of deputy president of 8th BOD of the
Company, director, member of strategy committee and
Xu Bangjun Deputy president Office leaving 24 Apr. 2017
member of remuneration and appraisal committee due to
personal career moves
Mr. Teng Guangsheng was elected as non-independent
Teng
Director Election 4 May 2017 director of the Company by resolution approved by AGM
Guangsheng
of 2016
Resigned the posts of president of 8th BOD of the
Company, director, director member of strategy
Liu Tibin President Office leaving 17 Jul. 2017
committee and member of nomination committee of the
Board due to personal career moves
Mr. Li Wei was elected as president of 8th BOD of the
rd
Li Wei President Election 21 Jul. 2017 Company by resolution approved in 33 session of 8th
BOD
He resigned from Chairman of the Company for personal
Li Wei Chairman Office leaving 21 Jul. 2017
work changed
Mr. Wu Dinggang was appointed as chairman of the
Wu Dinggang Chairman Appointment 21 Jul. 2017
Company by resolution approved 33rd session of 8th BOD
In addition, the introduction about changing the term of office of the company’s ninth session
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
of the Board of Directors and the Board of Supervisors:
The resolution of the 34th meeting of the 8th session of the Board of Directors that the
company held on August 9, 2017 approved the Proposal on the Election of Non-Independent
Directors of the 9th Session of the Board of Directors of the Company and the Proposal on the
Election of Independent Directors of the 9th Session of the Board of Directors of the Company,
according to the voting of the directors participated in the meeting, agreed to nominate Mr. Li Wei,
Mr. Wu Dinggang, Mr. Kou Huameng, Mr. Shi Qiang, Mr. Yong Fengshan and Mr. Teng
Guangsheng as the candidates for the non-independent directors of the 9th Board of Directors of the
company; and agreed to nominate Mr. Gan Shengdao, Mr. Ren Jia, and Mr. Lu Yingjin as the
candidates for the independent directors of the 9th Board of Directors of the company. On the same
day, the resolution of the 18th meeting of the 8th Board of Supervisors of the company approved the
Proposal on the Election of the 9th Board of Supervisors of the Company, according to the voting of
the supervisors participated in the meeting, agreed to nominate Mr. Shao Min, Miss. Huang Hong,
Mr. He Xintan as the candidates for the 9th Board of Supervisors.
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
Section IX Corporate Bond
Whether the Company has a corporation bonds that issuance publicly and listed on stock
exchange and without due on the date when semi-annual report approved for released or fail to cash
in full on due: Nil
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
Section X. Financial Report
I. Audit reports
Whether the semi-annual report was audited or not
□ Yes √ No
The semi-annual report was not audited.
II. Financial statements
Units in Notes of Financial Statements is RMB
1. Consolidated Balance Sheet
Prepared by Hefei Meiling Co., Ltd.
2017-6-30
In RMB
Item Closing balance Opening balance
Current assets:
Monetary funds 4,918,185,647.77 4,058,869,234.63
Settlement provisions
Capital lent
Financial liability measured
by fair value and with variation 10,813,272.50 12,060,213.30
reckoned into current gains/losses
Derivative financial liability
Notes receivable 2,511,715,429.41 1,421,429,723.73
Accounts receivable 2,048,332,541.11 1,118,960,552.49
Accounts paid in advance 289,836,060.91 134,706,488.38
Insurance receivable
Reinsurance receivables
Contract reserve of
reinsurance receivable
Interest receivable 3,229,356.48 2,645,494.32
Dividend receivable
Other receivables 68,537,511.44 39,553,919.44
Purchase restituted finance
asset
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
Inventories 2,582,538,614.47 1,974,526,734.86
Divided into assets held for
sale
Non-current asset due within
46,133,664.00 12,625,340.00
one year
Other current assets 1,867,683,272.03 1,454,346,297.42
Total current assets 14,347,005,370.12 10,229,723,998.57
Non-current assets:
Loans and payments on
behalf
Finance asset available for
31,000,000.00 17,000,000.00
sales
Held-to-maturity investment
Long-term account
receivable
Long-term equity investment 90,247,745.70 81,643,631.37
Investment property 12,871,340.33 13,275,631.40
Fixed assets 1,214,541,611.12 1,204,093,169.72
Construction in progress 148,626,411.17 107,037,409.95
Engineering material
Disposal of fixed asset 75,846,390.89 75,788,138.47
Productive biological asset
Oil and gas asset
Intangible assets 605,320,595.90 613,969,271.63
Expense on Research and
73,961,222.33 45,023,750.60
Development
Goodwill
Long-term expenses to be
2,583,106.23 1,132,075.48
apportioned
Deferred income tax asset 87,505,957.53 84,264,603.65
Other non-current asset - 34,615,630.00
Total non-current asset 2,342,504,381.20 2,277,843,312.27
Total assets 16,689,509,751.32 12,507,567,310.84
Current liabilities:
Short-term loans 1,432,622,701.07 288,343,724.73
Loan from central bank
Absorbing deposit and
interbank deposit
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
Capital borrowed
Financial liability measured
by fair value and with variation 9,671,394.08 559,249.58
reckoned into current gains/losses
Derivative financial liability
Notes payable 4,573,857,981.57 2,635,051,740.30
Accounts payable 3,168,053,679.32 2,331,899,310.82
Accounts received in
472,573,801.58 390,935,440.46
advance
Selling financial asset of
repurchase
Commission charge and
commission payable
Wage payable 103,531,061.56 189,592,039.00
Taxes payable 85,377,009.73 59,849,032.13
Interest payable 708,602.61 1,617,352.01
Dividend payable 16,972,722.88 2,545,801.23
Other accounts payable 812,770,528.06 622,580,323.43
Reinsurance payables
Insurance contract reserve
Security trading of agency
Security sales of agency
Divided into liability held for
sale
Non-current liabilities due
59,718,504.77 272,202,590.10
within 1 year
Other current liabilities
Total current liabilities 10,735,857,987.23 6,795,176,603.79
Non-current liabilities:
Long-term loans 253,460,000.00 38,908,788.00
Bonds payable
Including: preferred stock
Perpetual capital
securities
Long-term account payable
Long-term wages payable 28,061,416.36 29,696,403.85
Special accounts payable 980,000.00 1,400,000.00
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
Projected liabilities 328,801,716.59 331,575,430.79
Deferred income 122,713,001.14 142,919,562.49
Deferred income tax
1,503,490.88 1,809,032.00
liabilities
Other non-current liabilities
Total non-current liabilities 735,519,624.97 546,309,217.13
Total liabilities 11,471,377,612.20 7,341,485,820.92
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 2,685,313,862.77 2,687,961,060.65
Less: Inventory shares
Other comprehensive income 938,467.33 3,474,546.95
Reasonable reserve
Surplus public reserve 391,029,420.33 391,029,420.33
Provision of general risk
Retained profit 997,496,549.90 968,097,382.98
Total owner’s equity attributable
5,119,376,181.33 5,095,160,291.91
to parent company
Minority interests 98,755,957.79 70,921,198.01
Total owner’s equity 5,218,132,139.12 5,166,081,489.92
Total liabilities and owner’s
16,689,509,751.32 12,507,567,310.84
equity
Legal Representative: Li Wei
Person in charge of accounting works: Zhang Xiaolong
Person in charge of accounting institute: Luo Bo
2. Balance Sheet of Parent Company
In RMB
Item Closing balance Opening balance
Current assets:
Monetary funds 3,070,514,216.48 3,071,362,771.31
Financial liability measured
10,023,272.50 12,060,213.30
by fair value and with variation
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
reckoned into current gains/losses
Derivative financial liability
Notes receivable 1,597,881,819.77 1,053,598,721.93
Accounts receivable 1,755,138,033.66 1,006,701,894.37
Account paid in advance 399,362,495.77 106,947,474.25
Interest receivable
Dividends receivable
Other receivables 59,549,479.60 26,742,423.95
Inventories 1,108,770,017.32 1,017,090,374.81
Divided into assets held for
sale
Non-current assets maturing
within one year
Other current assets 1,420,969,339.84 1,427,283,451.40
Total current assets 9,422,208,674.94 7,721,787,325.32
Non-current assets:
Available-for-sale financial
31,000,000.00 17,000,000.00
assets
Held-to-maturity investments
Long-term receivables
Long-term equity
1,025,915,752.87 992,282,289.21
investments
Investment property 11,095,070.97 11,332,015.32
Fixed assets 837,773,087.41 861,163,999.99
Construction in progress 38,386,238.77 19,478,121.20
Project materials
Disposal of fixed assets 43,553,207.13 43,494,954.71
Productive biological assets
Oil and natural gas assets
Intangible assets 433,737,939.25 430,435,091.82
Research and development
3,480,624.34 12,797,092.26
costs
Goodwill
Long-term deferred expenses
Deferred income tax assets 69,726,484.23 69,138,686.26
Other non-current assets
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
Total non-current assets 2,494,668,404.97 2,457,122,250.77
Total assets 11,916,877,079.91 10,178,909,576.09
Current liabilities:
Short-term borrowings 1,350,912,701.07 261,843,724.73
Financial liability measured
by fair value and with variation 8,890,194.08 -
reckoned into current gains/losses
Derivative financial liability
Notes payable 2,537,674,948.81 1,734,774,950.13
Accounts payable 1,503,983,245.29 1,521,019,717.86
Accounts received in
95,120,111.63 104,205,506.34
advance
Wage payable 20,368,144.07 57,714,577.87
Taxes payable 19,598,494.87 25,677,906.64
Interest payable 708,602.61 1,617,352.01
Dividend payable 16,972,722.88 2,545,801.23
Other accounts payable 560,457,483.66 634,561,307.52
Divided into liability held for
sale
Non-current liabilities due
8,384,965.56 257,750,238.18
within 1 year
Other current liabilities
Total current liabilities 6,123,071,614.53 4,601,711,082.51
Non-current liabilities:
Long-term loans 253,460,000.00 4,751,000.00
Bonds payable
Including: preferred stock
Perpetual capital
securities
Long-term account payable
Long-term wages payable 28,061,416.36 29,696,403.85
Special accounts payable
Projected liabilities 328,801,716.59 331,575,430.79
Deferred income 60,750,408.61 64,601,290.18
Deferred income tax
1,503,490.88 1,809,032.00
liabilities
Other non-current liabilities
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
Total non-current liabilities 672,577,032.44 432,433,156.82
Total liabilities 6,795,648,646.97 5,034,144,239.33
Owners’ equity:
Share capita 1,044,597,881.00 1,044,597,881.00
Other equity instrument
Including: preferred stock
Perpetual capital
securities
Capital public reserve 2,753,017,007.10 2,753,017,007.10
Less: Inventory shares
Other comprehensive income
Reasonable reserve
Surplus reserve 390,811,254.65 390,811,254.65
Retained profit 932,802,290.19 956,339,194.01
Total owner’s equity 5,121,228,432.94 5,144,765,336.76
Total liabilities and owner’s
11,916,877,079.91 10,178,909,576.09
equity
Legal Representative: Li Wei
Person in charge of accounting works: Zhang Xiaolong
Person in charge of accounting institute: Luo Bo
3. Consolidated Profit Statement
In RMB
Item Current Period Last Period
I. Total operating income 8,517,794,193.10 6,866,631,262.68
Including: Operating income 8,517,794,193.10 6,866,631,262.68
Interest income
Insurance gained
Commission charge and
commission income
II. Total operating cost 8,436,805,983.05 6,760,418,778.86
Including: Operating cost 6,996,226,048.85 5,432,461,687.10
Interest expense
Commission charge and
commission expense
Cash surrender value
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
Net amount of expense of
compensation
Net amount of withdrawal of
insurance contract reserve
Bonus expense of guarantee
slip
Reinsurance expense
Operating tax and extras 65,836,020.31 79,457,581.26
Sales expenses 1,140,172,032.08 1,075,647,750.60
Administration expenses 222,533,091.74 175,964,420.95
Financial expenses -33,454,482.67 -39,699,342.16
Losses of devaluation of asset 45,493,272.74 36,586,681.11
Add: Changing income of fair
-10,359,085.30 -1,278,570.21
value(Loss is listed with ―-‖)
Investment income (Loss is
23,593,349.66 4,153,090.95
listed with ―-‖)
Including: Investment income
on affiliated company and joint -3,226,328.17 -833,210.42
venture
Exchange income (Loss is
listed with ―-‖)
Other income 1,275,937.62 -
III. Operating profit (Loss is
95,498,412.03 109,087,004.56
listed with ―-‖)
Add: Non-operating income 23,491,147.85 21,471,702.44
Including: Disposal gains
261,776.49 330,833.76
of non-current asset
Less: Non-operating expense 11,455,300.63 1,818,874.18
Including: Disposal loss
11,359,875.16 1,545,129.64
of non-current asset
IV. Total Profit (Loss is listed
107,534,259.25 128,739,832.82
with ―-‖)
Less: Income tax expense 9,439,557.86 18,816,185.98
V. Net profit (Net loss is listed with
98,094,701.39 109,923,646.84
―-‖)
Net profit attributable to
92,075,039.77 109,992,701.28
owner’s of parent company
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
Minority shareholders’ gains
6,019,661.62 -69,054.44
and losses
VI. Net after-tax of other
-3,352,515.41 2,484,848.72
comprehensive income
Net after-tax of other
comprehensive income attributable -2,536,079.62 1,814,457.07
to owners of parent company
(I) Other comprehensive
income items which will not be
reclassified subsequently to profit
of loss
1. Changes as a result
of re-measurement of net defined
benefit plan liability or asset
2. Share of the other
comprehensive income of the
investee accounted for using equity
method which will not be
reclassified subsequently to profit
and loss
(II) Other comprehensive
income items which will be
-2,536,079.62 1,814,457.07
reclassified subsequently to profit
or loss
1. Share of the other
comprehensive income of the
investee accounted for using equity
method which will be reclassified
subsequently to profit or loss
2. Gains or losses
arising from changes in fair value
of available-for-sale financial assets
3. Gains or losses
arising from reclassification of
held-to-maturity investment as
available-for-sale financial assets
4. The effect hedging
portion of gains or losses arising
from cash flow hedging
instruments
5. Translation
-2,536,079.62 1,814,457.07
differences arising on translation of
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
foreign currency financial
statements
6. Other
Net after-tax of other -816,435.79 670,391.65
comprehensive income
attributable to minority
shareholders
VII. Total comprehensive income 94,742,185.98 112,408,495.56
Total comprehensive income
attributable to owners of parent 89,538,960.15 111,807,158.35
Company
Total comprehensive income
attributable to minority 5,203,225.83 601,337.21
shareholders
VIII. Earnings per share:
(i) Basic earnings per share 0.0881 0.1440
(ii) Diluted earnings per share 0.0881 0.1440
Legal Representative: Li Wei
Person in charge of accounting works: Zhang Xiaolong
Person in charge of accounting institute: Luo Bo
4. Profit Statement of Parent Company
In RMB
Item Current Period Last Period
I. Operating income 4,129,608,352.50 3,770,773,163.93
Less: Operating cost 3,775,369,456.26 3,160,132,227.01
Operating tax and extras 27,722,529.70 38,748,885.70
Sales expenses 231,438,219.07 421,077,853.44
Administration
109,065,216.23 77,408,287.96
expenses
Financial expenses -37,206,339.33 -31,518,036.32
Losses of devaluation of
4,856,561.37 9,159,976.91
asset
Add: Changing income of
-10,927,134.88 -1,278,570.21
fair value(Loss is listed with ―-‖)
Investment income (Loss
29,730,083.95 82,892,597.34
is listed with ―-‖)
Including: Investment 3,105,463.66 2,644,982.57
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
income on affiliated company and
joint venture
Other income
II. Operating profit (Loss is
37,165,658.27 177,377,996.36
listed with ―-‖)
Add: Non-operating income 7,418,718.98 14,372,303.76
Including: Disposal
- 269,387.27
gains of non-current asset
Less: Non-operating expense 1,447,901.85 1,216,566.48
Including: Disposal loss
1,443,561.25 1,150,366.91
of non-current asset
III. Total Profit (Loss is listed
43,136,475.40 190,533,733.64
with ―-‖)
Less: Income tax expense 3,997,506.37 14,915,129.58
IV. Net profit (Net loss is listed
39,138,969.03 175,618,604.06
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 as a result
of re-measurement of net defined
benefit plan liability or asset
2. Share of the other
comprehensive income of the
investee accounted for using
equity method which will not be
reclassified subsequently to profit
and loss
(II) Other comprehensive
income items which will be
reclassified subsequently to profit
or loss
1. Share of the other
comprehensive income of the
investee accounted for using
equity method which will be
reclassified subsequently to profit
or loss
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
2. Gains or losses
arising from changes in fair value
of available-for-sale financial
assets
3. Gains or losses
arising from reclassification of
held-to-maturity investment as
available-for-sale financial assets
4. The effect
hedging portion of gains or losses
arising from cash flow hedging
instruments
5. Translation
differences arising on translation
of foreign currency financial
statements
6. Other
VI. Total comprehensive income 39,138,969.03 175,618,604.06
VII. Earnings per share:
(i) Basic earnings per share 0.0375 0.2299
(ii) Diluted earnings per
0.0375 0.2299
share
Legal Representative: Li Wei
Person in charge of accounting works: Zhang Xiaolong
Person in charge of accounting institute: Luo Bo
5. Consolidated Cash Flow Statement
In RMB
Item Current Period Last Period
I. Cash flows arising from
operating activities:
Cash received from selling
commodities and providing labor 6,755,539,540.78 6,122,120,567.44
services
Net increase of customer
deposit and interbank deposit
Net increase of loan from
central bank
Net increase of capital
borrowed from other financial
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
institution
Cash received from original
insurance contract fee
Net cash received from
reinsurance business
Net increase of insured
savings and investment
Net increase of amount from
disposal financial assets that
measured by fair value and with
variation reckoned into current
gains/losses
Cash received from interest,
commission charge and
commission
Net increase of capital
borrowed
Net increase of returned
business capital
Write-back of tax received 205,339,020.51 183,108,861.55
Other cash received
16,569,072.09 19,615,271.12
concerning operating activities
Subtotal of cash inflow arising
6,977,447,633.38 6,324,844,700.11
from operating activities
Cash paid for purchasing
commodities and receiving labor 5,258,471,672.84 4,321,939,929.71
service
Net increase of customer
loans and advances
Net increase of deposits in
central bank and interbank
Cash paid for original
insurance contract compensation
Cash paid for interest,
commission charge and
commission
Cash paid for bonus of
guarantee slip
Cash paid to/for staff and
704,133,083.60 644,386,641.53
workers
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
Taxes paid 210,338,863.27 168,259,449.49
Other cash paid concerning
320,273,315.76 318,569,174.49
operating activities
Subtotal of cash outflow arising
6,493,216,935.47 5,453,155,195.22
from operating activities
Net cash flows arising from
484,230,697.91 871,689,504.89
operating activities
II. Cash flows arising from
investing activities:
Cash received from
1,457,000,000.00 500,000,000.00
recovering investment
Cash received from
27,800,453.69 4,986,301.37
investment income
Net cash received from
disposal of fixed, intangible and 2,614,755.73 330,776.45
other long-term assets
Net cash received from
disposal of subsidiaries and other
units
Other cash received
41,477,206.87 36,389,716.67
concerning investing activities
Subtotal of cash inflow from
1,528,892,416.29 541,706,794.49
investing activities
Cash paid for purchasing
fixed, intangible and other 239,785,175.33 65,945,234.00
long-term assets
Cash paid for investment 1,853,000,021.00 100,883,860.00
Net increase of mortgaged
loans
Net cash received from
subsidiaries and other units
obtained
Other cash paid concerning
998,270.61 -
investing activities
Subtotal of cash outflow from
2,093,783,466.94 166,829,094.00
investing activities
Net cash flows arising from
-564,891,050.65 374,877,700.49
investing activities
III. Cash flows arising from
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
financing activities:
Cash received from
20,000,000.00 23,145,352.69
absorbing investment
Including: Cash received
from absorbing minority
shareholders’ investment by
subsidiaries
Cash received from loans 1,685,653,798.22 797,486,045.88
Cash received from issuing
bonds
Other cash received
- 3,451.80
concerning financing activities
Subtotal of cash inflow from
1,705,653,798.22 820,634,850.37
financing activities
Cash paid for settling debts 737,057,083.32 88,241,810.84
Cash paid for dividend and
profit distributing or interest 57,193,407.84 49,368,745.83
paying
Including: Dividend and
profit of minority shareholder
paid by subsidiaries
Other cash paid concerning
151,611.24 98,192.48
financing activities
Subtotal of cash outflow from
794,402,102.40 137,708,749.15
financing activities
Net cash flows arising from
911,251,695.82 682,926,101.22
financing activities
IV. Influence on cash and cash
equivalents due to fluctuation in -7,231,244.45 12,229,868.87
exchange rate
V. Net increase of cash and cash
823,360,098.63 1,941,723,175.47
equivalents
Add: Balance of cash and
cash equivalents at the period 3,986,098,419.76 2,121,161,238.01
-begin
VI. Balance of cash and cash
4,809,458,518.39 4,062,884,413.48
equivalents at the period -end
Legal Representative: Li Wei
Person in charge of accounting works: Zhang Xiaolong
Person in charge of accounting institute: Luo Bo
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
6. Cash Flow Statement of Parent Company
In RMB
Item Current Period Last Period
I. Cash flows arising from operating
activities:
Cash received from selling
commodities and providing labor 2,847,697,427.41 3,257,292,398.00
services
Write-back of tax received 97,733,874.40 90,212,886.14
Other cash received concerning
13,343,872.91 11,964,243.27
operating activities
Subtotal of cash inflow arising from
2,958,775,174.72 3,359,469,527.41
operating activities
Cash paid for purchasing
commodities and receiving labor 3,270,599,036.24 2,456,420,547.09
service
Cash paid to/for staff and workers 292,673,473.80 257,679,481.30
Taxes paid 39,983,393.59 58,375,692.51
Other cash paid concerning
111,308,401.29 135,616,094.86
operating activities
Subtotal of cash outflow arising from
3,714,564,304.92 2,908,091,815.76
operating activities
Net cash flows arising from operating
-755,789,130.20 451,377,711.65
activities
II. Cash flows arising from investing
activities:
Cash received from recovering
1,430,000,000.00 500,000,000.00
investment
Cash received from investment
27,605,396.15 80,247,614.77
income
Net cash received from disposal of
fixed, intangible and other long-term 566,647.40 240,112.02
assets
Net cash received from disposal of
subsidiaries and other units
Other cash received concerning
41,875,620.90 28,290,477.04
investing activities
Subtotal of cash inflow from investing 1,500,047,664.45 608,778,203.83
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
activities
Cash paid for purchasing fixed,
190,548,277.28 37,238,789.69
intangible and other long-term assets
Cash paid for investment 1,494,528,000.00 171,250,000.00
Net cash received from
subsidiaries and other units
Other cash paid concerning
998,270.61 63,665,205.65
investing activities
Subtotal of cash outflow from investing
1,686,074,547.89 272,153,995.34
activities
Net cash flows arising from investing
-186,026,883.44 336,624,208.49
activities
III. Cash flows arising from financing
activities:
Cash received from absorbing
investment
Cash received from loans 1,633,110,198.22 794,126,025.52
Cash received from issuing bonds
Other cash received concerning
142,854,592.22 217,115,708.21
financing activities
Subtotal of cash inflow from financing
1,775,964,790.44 1,011,241,733.73
activities
Cash paid for settling debts 737,057,083.32 60,135,614.84
Cash paid for dividend and profit
56,234,951.49 48,236,007.73
distributing or interest paying
Other cash paid concerning
35,096,664.55 56,057,512.35
financing activities
Subtotal of cash outflow from
828,388,699.36 164,429,134.92
financing activities
Net cash flows arising from financing
947,576,091.08 846,812,598.81
activities
IV. Influence on cash and cash
equivalents due to fluctuation in -4,752,741.88 11,423,170.75
exchange rate
V. Net increase of cash and cash
1,007,335.56 1,646,237,689.70
equivalents
Add: Balance of cash and cash
3,067,671,385.08 1,654,499,494.28
equivalents at the period -begin
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
VI. Balance of cash and cash
3,068,678,720.64 3,300,737,183.98
equivalents at the period -end
Legal Representative: Li Wei
Person in charge of accounting works: Zhang Xiaolong
Person in charge of accounting institute: Luo Bo
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
7. Statement of Changes in Owners’ Equity (Consolidated)
This Period
In RMB
This Period
Owners’ equity attributable to parent company
Other
equity instrument Reas
Item Less: Provisio Minority Total owners’
Perpetu Other onabl
Invento Surplus n of Retained interests equity
Share capital Preferr al Capital reserve comprehensive e
ry reserve general profit
ed capital Other income reser
shares risk
stock securiti ve
es
I. Balance at the end
1,044,597,881.00 2,687,961,060.65 3,474,546.95 391,029,420.33 968,097,382.98 70,921,198.01 5,166,081,489.92
of the last year
Add: Changes
of accounting policy
Error
correction of the last
period
Enterpr
ise combine under
the same control
Other
II. Balance at the
beginning of this 1,044,597,881.00 2,687,961,060.65 3,474,546.95 391,029,420.33 968,097,382.98 70,921,198.01 5,166,081,489.92
year
III. Increase/
Decrease in this year -2,647,197.88 -2,536,079.62 29,399,166.92 27,834,759.78 52,050,649.20
(Decrease is listed
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
with ―-‖)
(i) Total
comprehensive -2,536,079.62 92,075,039.77 5,203,225.83 94,742,185.98
income
(ii) Owners’
devoted and -2,647,197.88 22,631,533.95 19,984,336.07
decreased capital
1.Common shares
invested by 37,361.22 37,361.22
shareholders
2. Capital invested
by holders of other
equity instruments
3. Amount reckoned
into owners equity
with share-based
payment
4. Other -2,647,197.88 22,594,172.73 19,946,974.85
(III) Profit
-62,675,872.85 -62,675,872.85
distribution
1. Withdrawal of
surplus reserves
2. Withdrawal of
general risk
provisions
3. Distribution for
owners (or -62,675,872.85 -62,675,872.85
shareholders)
4. Other
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
(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. 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 report 1,044,597,881.00 2,685,313,862.77 938,467.33 391,029,420.33 997,496,549.90 98,755,957.79 5,218,132,139.12
period
Last Year
In RMB
Last Period
Owners’ equity attributable to the parent Company
Item Other Less: Reas Provisi
Other Minority Total owners’
equity instrument Invento onabl on of
Share capital Capital reserve comprehensiv Surplus reserve Retained profit interests equity
Preferre Perpetu Othe ry e general
e income
d stock al r shares reser risk
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
capital ve
securiti
es
I. Balance at the end
763,739,205.00 1,529,183,876.13 -2,280,500.61 367,066,994.18 817,667,480.44 36,291,435.86 3,511,668,491.00
of the last year
Add: Changes
of accounting policy
Error
correction of the last
period
Enterp
rise combine under
the same control
Other
II. Balance at the
beginning of this 763,739,205.00 1,529,183,876.13 -2,280,500.61 367,066,994.18 817,667,480.44 36,291,435.86 3,511,668,491.00
year
III. Increase/
Decrease in this
280,858,676.00 1,158,777,184.52 5,755,047.56 23,962,426.15 150,429,902.54 34,629,762.15 1,654,412,998.92
year (Decrease is
listed with ―-‖)
(i) Total
comprehensive 5,755,047.56 220,216,680.96 1,996,589.61 227,968,318.13
income
(ii) Owners’
devoted and 280,858,676.00 1,158,777,184.52 32,984,351.87 1,472,620,212.39
decreased capital
1.Common shares
invested by 280,858,676.00 1,259,874,046.76 27,867,909.83 1,568,600,632.59
shareholders
2. Capital invested
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
by holders of other
equity instruments
3. Amount reckoned
into owners equity
with share-based
payment
-101,096,862.24
4. Other 5,116,442.04 -95,980,420.20
(III) Profit
23,962,426.15 -69,786,778.42 -351,179.33 -46,175,531.60
distribution
1. Withdrawal of
23,962,426.15 -23,962,426.15 -
surplus reserves
2. Withdrawal of
general risk
provisions
3. Distribution for
owners (or -45,824,352.27 -351,179.33 -46,175,531.60
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. Other
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
(V) Reasonable
reserve
1. Withdrawal in the
report period
2. Usage in the
report period
(VI) Others
IV. Balance at the
end of the report 1,044,597,881.00 2,687,961,060.65 3,474,546.95 391,029,420.33 968,097,382.98 70,921,198.01 5,166,081,489.92
period
Legal Representative: Li Wei
Person in charge of accounting works: Zhang Xiaolong
Person in charge of accounting institute: Luo Bo
8. Statement of Changes in Owners’ Equity (Parent Company)
This Period
In RMB
This Period
Other
equity instrument Other
Item Less:
comprehen Reasonabl Total owners’
Share capital Perpetual Capital reserve Inventory Surplus reserve Retained profit
Preferred sive e reserve equity
capital Other shares
stock income
securities
I. Balance at the end of the
1,044,597,881.00 2,753,017,007.10 390,811,254.65 956,339,194.01 5,144,765,336.76
last year
Add: Changes of
accounting policy
Error
correction of the last period
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
Other
II. Balance at the beginning
1,044,597,881.00 2,753,017,007.10 390,811,254.65 956,339,194.01 5,144,765,336.76
of this year
III. Increase/ Decrease in
this year (Decrease is listed -23,536,903.82 -23,536,903.82
with ―-‖)
(i) Total comprehensive
39,138,969.03 39,138,969.03
income
(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 -62,675,872.85 -62,675,872.85
1. Withdrawal of surplus
reserves
2. Distribution for owners
-62,675,872.85 -62,675,872.85
(or shareholders)
3. Other
(IV) Carrying forward
internal owners’ equity
1. Capital reserves
conversed to capital (share
capital)
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
2. Surplus reserves
conversed to capital (share
capital)
3. Remedying loss with
surplus reserve
4. 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
1,044,597,881.00 2,753,017,007.10 390,811,254.65 932,802,290.19 5,121,228,432.94
report period
Last year
In RMB
Last period
Other
equity instrument
Less: Other
Item Perpetu Invento comprehen Reasonabl Total owners’
Share capital Preferr al Capital reserve Surplus reserve Retained profit
ry sive e reserve equity
ed capital Other shares income
stock securiti
es
I. Balance at the end of the last
763,739,205.00 1,497,987,446.59 366,848,828.50 786,501,710.90 3,415,077,190.99
year
Add: Changes of accounting
policy
Error correction of
the last period
Other
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
II. Balance at the beginning of this
763,739,205.00 1,497,987,446.59 366,848,828.50 786,501,710.90 3,415,077,190.99
year
III. Increase/ Decrease in this year
280,858,676.00 1,255,029,560.51 23,962,426.15 169,837,483.11 1,729,688,145.77
(Decrease is listed with ―-‖)
(i) Total comprehensive income 239,624,261.53 239,624,261.53
(ii) Owners’ devoted and
280,858,676.00 1,259,877,498.56 1,540,736,174.56
decreased capital
1.Common shares invested by
280,858,676.00 1,259,874,046.76 1,540,732,722.76
shareholders
2. Capital invested by holders of
other equity instruments
3. Amount reckoned into owners
equity with share-based payment
4. Other 3,451.80 3,451.80
(III) Profit distribution 23,962,426.15 -69,786,778.42 -45,824,352.27
1. Withdrawal of surplus reserves 23,962,426.15 -23,962,426.15
2. Distribution for owners (or
-45,824,352.27 -45,824,352.27
shareholders)
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. Other
(V) Reasonable reserve
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2017
1. Withdrawal in the report period
2. Usage in the report period
(VI) Others -4,847,938.05 -4,847,938.05
IV. Balance at the end of the report
1,044,597,881.00 2,753,017,007.10 390,811,254.65 956,339,194.01 5,144,765,336.76
period
Legal Representative: Li Wei
Person in charge of accounting works: Zhang Xiaolong
Person in charge of accounting institute: Luo Bo
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2017 to 30 June 2017
(Unless other wise specified, RMB for record in the Statement)
I. Company profile
Hefei Meiling Co., Ltd (hereinafter referred to as ―the Company‖) is an incorporated Company
established and reorganized by Hefei Meiling Refrigerator General Factory and approved on June 12 th
1992 through [WanTiGaiHanZi (1992) No.039] issued by original Mechanism Reform Committee of
Anhui Province. On August 30th 1993, through Anhui Provincial Government [Wanzhengmi (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. 18th, 1993 in Shenzhen Stock
Exchange. On August 13th, 1996, the Company was approved to issue 100 million B shares to investors
abroad through [ZhengWeiFa (1996) No.26] issued by China Securities Regulatory Commission. The
Company went public in Shenzhen Stock Exchange on August 28th, 1996.
State-owned Assets Supervision & Administration Commission of the State Council approved such
transfers with Document Guozi Chanquan No.253 in 2007 Reply on Matters of Hefei Meiling Group
Holdings Company Limited Transferring Partial State-owned Ownership, Hefei Meiling Group
Holdings Company Limited (hereinafter abbreviated as Meiling Group) transferred its holding
37,852,683 shares in 82,852,683 state-owned shares of the Company to Sichuan Changhong Electronic
Group Co., Ltd (hereinafter abbreviated as Changhong Group), other 45,000,000 shares to Sichuan
Changhong Electric Co. Ltd (hereinafter abbreviated as Sichuan Changhong). On Aug 15, 2007, the
above ownerships were transferred and Cleaning Corporation Limited.
On 27 August 2007, State-owned Assets Supervision & Administration Commission of Anhui
Provincial Government replied with Document [WGZCQH (2007) No.309] Reply on ―Related Matters
of Share Merger Reform of Meiling Co., Ltd.‖, agreed the Company’s ownership split reform plan. The
Company made consideration that non-tradable share holders deliver 1.5 shares to A share holders per
10 shares, and original Meiling Group made prepayment 3,360,329 shares for some non-tradable share
holders as consideration for split 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 to transfer the above said shares to Hefei Xingtai Holding
Group Co., Ltd.(―Xingtai Holding Co.,‖) for free. On 7 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. 750]
issued by SASAC, agrees the above said transferring.
On October 29, 2008, Changhong Group Company signed Agreement on Equity Transfer of Hefei
Meiling Co., Ltd with Sichuan Changhong, in which 32,078,846 tradable A-shares with conditional
subscription of the Company (accounting for 7.76% in total shares) held by Changhong Group
Company. On 23 December 2008, ―Reply of 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
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2017 to 30 June 2017
(Unless other wise specified, RMB for record in the Statement)
said share transferring.
On 24 December 2010, being deliberated and approved in 32nd Meeting of 6th Session of the Board
and 2nd Extraordinary Shareholders’ General Meeting of 2010 as well as approval of document
[ZJXP(2010) No. 1715] from CSRC, totally 116,731,500 RMB ordinary shares (A stock) were offering
privately to target investors with issue price of RMB 10.28/share. Capital collecting amounting to RMB
1,199,999,820 after issuing expenses RMB 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 1,061,106,088.5 increased. The increasing capital has been verified by Capital
Verification Report No.:［XYZH2010CDA6021］issued from Shinwing CPA Co., Ltd.
On 20 June 2011, the general meeting of the Company considered and approved the 2010 profit
distribution plan, namely to distribute cash dividends of RMB0.5 (tax included) plus two shares for
every ten shares held by shareholders to all shareholders, based on the total share capital of 530,374,449
shares as of 31 December 2010. The total share capital of the Company upon profit distribution
increased to 636,449,338 shares. The capital increase was verified by Anhui Huashen Zhengda
Accounting Firm with the verification report WHSZDKYZ (2011) No.141.
On 26 June 2012, the general meeting of the Company considered and approved the 2011 profit
distribution and capitalization of capital reserve plan, namely to distribute cash dividends of RMB0.5
(tax included) plus two shares for every ten shares to all shareholders capitalized from capital reserve,
based on the total share capital of 636,449,338 shares as of 31 December 2011. The total share capital of
the Company upon implementation 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 12th meeting of the 8th Board of Directors
of the company and the first extraordinary general meeting in 2016, and approved by the document of
China Securities Regulatory Commission [CSRC License No. (2016) 1396] ―Reply to the approval of
non-public offering of shares of Hefei Meiling Co., Ltd.‖, the company has actually raised funds of
1,569,999,998.84 Yuan by non-public offering of no more than 334,042,553 new shares at face value
of RMB 1 Yuan per share and with issue price no less than RMB4.70 per share, after deducting the
issue costs of 29,267,276.08 Yuan , the net amount of raised funds is 1,540,732,722.76 Yuan , the
increased paid-in capital (share capital) of RMB 280,858,676.00 Yuan , increased capital reserve (share
premium) of 1,259,874,046.76 Yuan. This capital increase has been verified by No.
［XYZH2016CDA40272］capital verification report of ShineWing Certified Public Accountants special
general partnership.
Ended as 30 June 2017, total share capital of the Company amounting to 1,044,597,881shares with
ordinary shares in full. Among which, 881,733,881 shares of A-share accounting 84.41% in total shares
while B-share with 162,864,000 shares accounting 15.59% in total shares. Detail share capital as:
Type of stock Quantity Proportion
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2017 to 30 June 2017
(Unless other wise specified, RMB for record in the Statement)
(I) Restricted shares 290,457,371 27.81%
1. State-owned shares
2. State-owned legal person’s shares 70,793,625 6.78%
3. Other domestic shares 218,663,897 20.94%
Including: Domestic legal person’s shares 215,697,115 20.65%
Domestic natural person’s shares 2,966,782 0.29%
4. Foreign shares 999,849 0.09%
(II) Unrestricted shares 754,140,510 72.19%
1. RMB Ordinary shares 592,276,359 56.69%
2. Domestically listed foreign shares 161,864,151 15.50%
3. Overseas listed foreign shares
4. Others
Total shares 1,044,597,881 100.00%
The Company belongs to the manufacture of light industry, and engaged in the production and sale of
refrigerator, freezer and air-conditioner. Unified social credit code of the Company: 9134000014918555XK;
Address: No.2163, Lianhua Road, Economy and Technology Development Zone, Hefei City; Legal
Representative: Li Wei; register capital(paid-in capital): RMB 1,044,597,881; type of company: limited
liability company(joint venture and listed of Taiwan, Hong Kong and Macau) Business Scope: Manufacture
of cooling apparatus, air-conditioner, washing machine, injection plastic machine of computer controlling,
computer heater, plastic products, packaging products and decorations. Business of self-produced products,
technology export and import-export of the raw&auxiliary materials, machinery equipment, instrument and
technology; department sales and transportation
II. Scope of consolidated financial statement
The Company’s consolidated financial statement included 50 subsidiaries including Sichuan Changhong
Air-Conditioner Company Limited, Zhongshan Changhong Electric Company Limited and Zhongke Meiling
Cryognic Technology Company Limited, etc. As compared to previous year, Subsidiary Meiling Candy
Washing Machine Company Limited, Zhongshan Hongling Trade Company Limited and Guangzhou
Changhong Trade Company Limited were newly included due to direct investment in this period; Subsidiary
Xi’an Meizhilai Appliances Marketing Company Limited was excluded due to liquidation.
More detail can be seen in ―VII-Changes of consolidated scope‖ and ―VIII-Rights and interest in other
subjects‖ 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 and
proceedings, and relevant regulation of Accounting Standards for Enterprise released by the Ministry of
Finance, and was on the basis of sustainable operation, and the accounting policy and estimation stated in the
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2017 to 30 June 2017
(Unless other wise specified, RMB for record in the Statement)
―IV-Significant Accounting Policy and Accounting Estimation‖.
2. Continuous operation
The Company recently has a history of profitability operation and has financial resources supporting,
and prepared 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
for Enterprise, and reflects the financial condition, operational achievements and cash flow of the Company
effectively and completely.
2. Accounting period
The accounting period of the Company is the calendar date from 1 January to 31 December.
3. Standard currency for accounting
The Company takes RMB as the standard currency for accounting.
4. Accountant arrangement method of business combination under common control and not under
common control
As acquirer, the Company measures the assets and liabilities acquired through business combination
under common control at their carrying values as reflected in the consolidated financial statement of the
ultimate controller as of the combination date. Capital reserve shall be adjusted in respect of any difference
between carrying value of the net assets acquired and carrying value of the combination consideration paid.
In case that capital reserve is insufficient to offset, the Company would adjust retained earnings.
The acquiree’s net identifiable assets, liabilities or contingent liabilities acquired through business
combination not under common control shall be measured at fair value as of the acquisition date. The cost of
combination represents the fair value of the cash or non-cash assets paid, liabilities issued or committed and
equity securities issued by the Company as at the date of combination in consideration for acquiring the
controlling power in the acquiree, together with the sum of any directly related expenses occurred during
business combination(in case of such business combination as gradually realized through various
transactions, the combination cost refers to the sum of each cost of respective separate transaction). Where
the cost of the combination exceeds the acquirer’s interest in the fair value of the acquirer’s identifiable net
assets acquired, the difference is recognized as goodwill; where the cost of combination is lower than the
acquirer’s interest in the fair value of the acquiree’s identifiable net assets, the Company shall firstly make
further review on the fair values of the net identifiable assets, liabilities or contingent liabilities acquired as
well as the fair value of the non-cash assets portion of combination consideration or the equity securities
issued by the Company. In case that the Company finds the cost of combination is still lower than the
acquirer’s interest in the fair value of the acquiree’s identifiable net assets after such further review, the
difference is recognized in non-operating income for the current period when combination occurs.
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2017 to 30 June 2017
(Unless other wise specified, RMB for record in the Statement)
5. Measures on Preparation of Consolidated Financial Statements
The Company shall put all the subsidiaries controlled and main body structured into consolidated
financial statements.
Any difference arising from the inconformity of accounting year or accounting policies between the
subsidiaries and the Company shall be adjusted in the consolidated financial statements.
All the material inter-company transactions, non-extraordinary items and unrealized profit within the
combination scope are written-off when preparing consolidated financial statement. Owners’ equity of
subsidiary not attributable to parent company and current net gains and losses, other comprehensive income
and total comprehensive income attributable to minority shareholders are recognized as non-controlling
interests, minority interests, other comprehensive income attributable to minority shareholders and total
comprehensive income attributable to minority shareholders in consolidated financial statement respectively.
As for subsidiary acquired through business combination under common control, its operating results
and cash flow will be included in consolidated financial statement since the beginning of the period when
combination occurs. When preparing comparative consolidated financial statement, the relevant items in
previous year’s financial statement shall be adjusted as if the reporting entity formed upon combination has
been existing since the ultimate controller commenced relevant control.
As for equity interests of the investee under common control acquired through various transactions
which eventually formed business combination, the Company shall supplement disclosure of the accounting
treatment in consolidated financial statement in the reporting period when controlling power is obtained. For
example, as for equity interests of the investee under common control acquired through various transactions
which eventually formed business combination, adjustments shall be made as if the current status had been
existing when the ultimate controller commenced control in connection of preparing consolidated financial
statement; in connection with preparing comparative statement, the Company shall consolidate the relevant
assets and liabilities of the acquiree into the Company’s comparative consolidated financial statement to the
extent not earlier than the timing when the Company and the acquiree are all under control of the ultimate
controller, and the net assets increased due to combination shall be used to adjust relevant items under
owners’ equity in comparative statement. In order to prevent double computation of the value of the
acquiree’s net assets, the relevant profits and losses, other comprehensive income and change of other net
assets recognized during the period from the date when the Company acquires original equity interests and
the date when the Company and the acquiree are all under ultimate control of the same party (whichever is
later) to the date of combination in respect of the long-term equity investment held by the Company before
satisfaction of combination shall be utilized to offset the beginning retained earnings and current gains and
losses in the period as the comparative financial statement involves, respectively.
As for subsidiary acquired through business combination not under common control, its operating
results and cash flow will be included in consolidated financial statement since the Company obtains
controlling power. When preparing consolidated financial statement, the Company shall adjust the
subsidiary’s financial statement based on the fair value of the various identifiable assets, liabilities or
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2017 to 30 June 2017
(Unless other wise specified, RMB for record in the Statement)
contingent liabilities recognized as of the acquisition date.
As for equity interests of the investee not under common control acquired through various transactions
which eventually formed business combination, the Company shall supplement disclosure of the accounting
treatment in consolidated financial statement in the reporting period when controlling power is obtained. For
example, as for equity interests of the investee not under common control acquired through various
transactions which eventually formed business combination, when preparing consolidated financial statement,
the Company would re-measure the equity interests held in the acquiree before acquisition date at their fair
value as of the acquisition date, and any difference between the fair value and carrying value is included in
current investment income. in case that the equity interests in acquiree held by the Company before the
relevant acquisition date involves other comprehensive income at equity method and change of other 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 date falls upon.
The other comprehensive income arising from change of the net liabilities or net assets under established
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
without losing control rights over the subsidiary, the difference between the proceeds from disposal of
interests and the decrease of the shared net assets of the subsidiary is adjusted to capital premium (share
premium). In case capital reserve is not sufficient to offset the difference, retained earnings will be adjusted.
As for disposal of part equity investment which leads to losing control over the investee, the Company
would re-measure the remaining equity interests at their fair value as of the date when the Company loses
control over the investee when preparing consolidated financial statement. The sum of consideration received
from disposal of equity interest and fair value of the remaining equity interest, less the net assets of the
original subsidiary attributable to the Company calculated based on the original shareholding proportion
since the acquisition date or the date then consolidation commences, is included in investment gains and
losses for the period when control is lost, meanwhile to offset goodwill. Other comprehensive income related
to equity interest investment in original subsidiaries is transferred into current investment gains and losses
upon lost of control.
If the disposal of the equity investment of a subsidiary is realized through multiple transactions until
loss of control and is a package deal, the accounting treatment of these transactions should be dealt with as
one transaction of disposal of the subsidiary until loss of control. However, before the Company loses total
control of the subsidiary, the differences between the actual disposal price and the share of the net assets of
the subsidiary disposed of in every transaction should be recognized as other comprehensive income in the
consolidated financial statements, and transferred to profit or loss when losing control.
6. 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
for jointly controlled entity, the Company determines the assets held and liabilities assumed separately as a
party to the jointly controlled entity, recognizes such assets and liabilities according to its proportion, and
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2017 to 30 June 2017
(Unless other wise specified, RMB for record in the Statement)
recognizes 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 not
constitute business activity, part of the gains and losses arising from such transaction attributable to other
participators of the jointly controlled entity is only recognized.
7. Cash and cash equivalents
Cash in the cash flow statement comprises the Group’s cash on hand and deposits that can be readily
withdrawn on demand. Cash equivalents are short-term, highly liquid investments held by the Group, that
are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in
value, including but not limited to the followings which meet the aforesaid conditions: debt investment
matured within three months upon the acquisition date, bank time deposit which can be early withdrew by
serving a notice and transferrable deposit receipt, etc. for time deposit which cannot be used for payment at
any time, it would be note recognized as cash; while if can be used for such purpose, it would be recognized
as cash. Guarantee deposit over three months in other monetary capital shall not be recognized as cash
equivalents, and those less than three months are recognized as cash equivalents.
8. 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
amount pursuant to the spot exchange rate as of the business day. As at the balance sheet date, monetary
items expressed by foreign currency are converted into RMB pursuant to the spot exchange rate as of the
balance sheet date. The conversion difference occurred is recorded into prevailing gains and losses, other
than the disclosure which is made according to capitalization rules for the exchange difference occurred from
the special foreign currency borrowings borrowed for constructing and producing the assets satisfying
condition of capitalization. As for the foreign currency non-monetary items measured by fair value, the
amount is then converted into RMB according to the spot exchange rate as of the confirmation day for fair
value. And the conversion difference occurred during the procedure is recorded into prevailing gains and
losses directly as change of fair value. As for the foreign currency non-monetary items measured by
historical cost, conversion is 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
foreign currency balance sheet; as for the items in statement of owners’ equity except for ―Undistributed
profit‖, conversion is made pursuant to the spot exchange rate of business day; income and expense items in
income statement then are also converted pursuant to the spot exchange rate of transaction day. Difference
arising from the aforementioned conversions shall be listed separately in items of owners’ equity. Spot
exchange rate as of the occurrence date of cash flow is adopted for conversion of foreign currency cash flow.
The amount of cash affected by exchange rate movement shall be listed separately in cash flow statement.
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2017 to 30 June 2017
(Unless other wise specified, RMB for record in the Statement)
9. Financial assets and financial liabilities
(1) Financial assets
1) Classification of financial assets
In consideration of investment targets and economic essence, the Company groups the financial assets
owned by it as four categories, namely financial assets measured by fair value and whose movement is
recorded into prevailing gains and losses, held-to-maturity investment, loans and accounts receivables, as
well as financial assets available-for-sale.
Financial assets measured by fair value and whose movement is recorded into prevailing gains and
losses represent the financial assets which are held mainly for disposal in a short time and listed as tradable
financial assets in the balance sheet.
Held-to-maturity investment represents the non-derivative financial assets which has fixed maturity day,
fixed or available-for-confirmation recovered amount and for which the management has definite intention
and ability to hold till maturity.
Loans and accounts receivables represent the non-derivative financial assets which have no quotation in
an active market and fixed or available-for-confirmation recovered amount.
Financial assets available-for-sale included the non-derivative financial assets available-for-sale and the
financial assets which have not been grouped as others at the initial confirmation.
2) Recognition and measurement for financial assts
Financial assets, while become part of the contract of financial instrument in the Company, recognized
in balance sheet by fair value. For the financial assets which are measured by fair value and whose fair value
change is recorded into prevailing gains and losses, the relevant transaction expense arising from acquisition
is recorded into prevailing gains and losses directly, while the relevant transaction expense of other financial
assets is recorded into initial recognition amount.
Financial assets which are measured by fair value and whose fair value change is recorded into
prevailing gains and losses, together with financial assets available-for-sale, would have follow-up
measurement according to fair value; effective interest method is adopted for loans and accounts receivables
and held-to-maturity investment which are shown in amortized cost.
Fair value change of financial assets which are measured by fair value and whose fair value change is
recorded into prevailing gains and losses is recorded into gains and losses of fair value change; interests or
cash dividend acquired from holding assets are recognized as investment income; when disposing such assets,
the difference between their fair value and initial accounting amount is recognized as investment gains and
losses. Meanwhile, gains and losses of fair value shall be adjusted.
Except impairment losses and exchange gains/loss from financial assets with foreign currency, variation
of the fair value for financial assets available for sale should reckon into shareholders’ equity. The variation
of fair value accumulative reckon into equity previously should transfer into current gains/losses while
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2017 to 30 June 2017
(Unless other wise specified, RMB for record in the Statement)
recognition of this financial asset terminated. For the interest during period of holding for instrument
investment of liability available for sale based on real interest rate, and cash dividend related with instrument
investment of equity available for sale that announced by invested enterprises should reckon into current
gains/losses as investment incomes.
3) Impairment of financial assets
Except for the financial assets which are measured by fair value and whose fair value change is recorded
into prevailing gains and losses, the Company will make check in the carrying value of other financial assets
as at the balance sheet date. If there is objective evidence proving impairment of certain financial assets, the
Company then makes provision for impairment.
When the financial assets calculated by amortized cost decrease in value, count and draw the provision
for impairment according to the balance between present value and book value of predicted future cash flows
(Excluding future credit losses that haven’t occurred yet.). If there is any objective evidence to indicate that
the financial assets has recovered and is objectively connected with matters occurred after confirming the
losses, the formerly confirmed impairment losses will be reversed and reckoned in current profits and losses.
When the fair value of financial assets available for sale goes down substantially or non- transiently, the
accumulating losses previously and directly reckoned in shareholder's equity and formed due to shrinkage of
fair value will be transferred and reckoned in impairment losses. As for the debt instrument investment
available for sale with confirmed impairment losses, if its fair value rises after and it is objectively connected
with matters occurred after confirming the primary impairment losses, the formerly confirmed impairment
losses will be reversed and reckoned in current profits and losses. And the debt instrument investment
available for sale with confirmed impairment losses shall be directly reckoned in stockholder's equity if its
fair value rises after.
4) Transfer of financial assets
The financial assets meet one of following requirements will be terminated recognition: ① The contract
rights of collecting cash flow of the financial assets is terminated; ②The financial assets has already been
transferred, and the Company has transferred almost all risks and remunerations of financial assets ownership
to the transferee; ③The financial assets has been transferred, even though the Company has neither
transferred nor kept almost all risks and remunerations of financial assets ownership, the Company has given
up controlling the financial assets.
If the enterprise has neither transferred or kept almost all risks and remunerations of financial assets
ownership, nor given up controlling the financial assets, then confirm the relevant financial assets according
to how it continues to involve into the transferred financial assets and confirm the relevant liabilities
accordingly. The degree of keeping involving into the transferred financial assets refers to the risk level with
which the fluctuation of this financial asset value makes the enterprise face.
If the entire transfer of financial assets satisfies the demand for derecognition, reckon the balance
between the book value of the transferred financial assets and the sum of consideration received from
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2017 to 30 June 2017
(Unless other wise specified, RMB for record in the Statement)
transfer and fluctuation accumulated amount of fair value formerly reckoned in other consolidated income in
the current profits and losses.
If part transfer of financial assets satisfies the demand for derecognition, apportion the integral book
value of the transferred financial assets between the derecognized parts and the parts not yet derecognized
according to each relative fair value, and reckon the balance between the sum of consideration received from
transfer and fluctuation accumulated amount of fair value formerly reckoned in other consolidated income
that should be apportioned to the derecognized parts and the apportioned aforementioned carrying amounts
in the current profits and losses.
(2) Financial liabilities
When making the initial recognition for financial liabilities, the Company classifies the financial
liabilities into ones which are measured by fair value and whose change is recorded into prevailing gains and
losses, and other financial liabilities.
Financial liabilities which are measured by fair value and whose change is recorded into prevailing
gains and losses include tradable financial liabilities and financial liabilities which are measured by fair value
and whose change is recorded into prevailing gains and losses at the initial recognition day. Follow-up
measurements are made by fair value. Recorded into prevailing gains and losses are the gains or losses
formed through fair value change and dividend and interest expenditure regarding to the financial liabilities.
As for other financial liabilities, effective interest rate method is adopted and follow-up measurement is
made according to amortized cost.
1) Method for recognition of fair value of financial assets and liabilities
For those financial instruments existing in active markets, market quotation in the active market is used
to confirm their fair values. In active market, the Company takes the present bid price of already-held
financial assets or plan-to-undertake financial liabilities as the fair values of relevant assets and liabilities; the
Company takes the present offer price of plan-to-buy financial assets and –already-undertaken liabilities as
the fair values of relevant assets and liabilities. In the situation that there are no present bid and offer price
for financial assets and liabilities, while there is no material change in economic environment after the latest
business day, then fair value of the financial assets and liabilities is to confirm pursuant to the latest business
market quotation.
Fair value of the financial instruments which have no active market is confirmed by adoption of
estimation technology. Estimation technology includes reference to the price applied by parties which know
well situation and are willing to make deals in the latest market business, reference to the current fair value
of other financial assets which are the same in principle, reference to discounted cash flow method and
option pricing model.
10. Bad debt provision for accounts receivable
Allowance method is adopted for the bad debt losses which are likely to happen. And conducting
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2017 to 30 June 2017
(Unless other wise specified, RMB for record in the Statement)
impairment test independently or by combination at period-end, withdrawn bad debt provision and then
recorded into current gains and losses. As for the accounts receivable which are not able to call back through
definite evidence, they shall be treated as bad debt losses after approval of the Group according to regulated
procedures to offset withdrawn bad debt provision.
The following situation as standards for confirmation of bad debt losses of accounts receivable: revoke,
bankruptcy, insolvency, serious insufficiency of cash flow of its debit units, or the debit units have to stop
production due to serious natural disaster and are not able to settle the debts or in predicted time, or other
definite evidence showing that the debt is not available to call back or the possibility of calling back is tiny.
Account receivables were divided as follow categories at period-end, which was performed impairment
test in way of individual or group, and withdrawal bad debt provision:
(1) Account receivable with single significant amount:
If totally amount takes over 80% of the total for over 5% occupied, than 5% of single amount
Determine basis or amount
in total amounts recognized as single significant amount; if totally amount takes less than
standards for single
80% of the total for over 5% occupied, than lower recognition standards till qualified 80% in
significant amount
total
Method of bad debt
provision accrual for account Withdrawal bad debt provision according to difference between the current value of future
receivable with single major cash flow and book values; if there has no impairment been found in individual test,
amount withdrawal bad debt provision while testing by group
(2) Account receivable withdrawal bad debt provision based on combination:
Basis for combination recognized
Combination 1 Account receivable except combination 2
Employee reserve fund, foreign investment amount, contact with related party, export tax refund
Combination 2
receivable, account receivable with L/C or insurance, government subsidy etc.
Methods on withdrawal of bad debt provision based on combination
Combination 1 Withdrawal bad debt provision by proportion in different age group
Combination 2 Risks are under control without bad debt provision accrual
In combination 1, withdrawal proportion of bad debt provision for account receivable based on age analysis:
Withdrawal proportion of account receivable Withdrawal proportion of other account
Age
(%) receivable (%)
Within 1 year (1 year
5
included)
1－2years 15
2－3 years 35
3－4 years 55
4－5 years 85
Over 5 years 100
(3) Account receivable with single minor amount but withdrawal single item bad debt provision:
Reasons for withdrawal single
Account with minor amount but have significant inflow risk on predicted future cash flow
item bad debt provision
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2017 to 30 June 2017
(Unless other wise specified, RMB for record in the Statement)
Withdrawal method for bad Impairment test on the current value of predicted future cash flow, bad debt provision
debt provision withdrawal.
11. Inventories
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 in process and mould etc.
Perpetual inventory system is applicable to inventories. For daily calculation, standard price is adopted for raw
materials, low-value consumption goods and stock goods. Switch-back cost of the current month is adjusted by distribution
price difference at the end of the month, the dispatched goods will share the cost differences of inventory while in settlement
the business income; and low-value consumption goods is carried forward at once when being applied for use; the mould
expenses will evenly deferred share based on balance at period-begin plus increase amount in this period divided by 12
months.
Inventory at period-end is valued by the Lower-of-value between the cost and net realizable value. For those individual
stock, suffering damage, totally or partly out of fashion or has lower sales price than cost, predicted recoverable parts in
cost, and withdrawal provision of inventory depreciation single. For those raw materials, stock commodities and goods in
transit, withdrawal provision of inventory depreciation by follow methods:
(1) Determined the net realizable value of raw materials on the higher amount between the final prices of estimated
sale-price deducted cost (about to happen till products finished), estimated sales expense and relevant taxes, and the fair
value of external disposal.
(2) Withdrawal obsolete provision for commodity stocks and goods in transit by the follow proportion:
(1) Refrigerator, freezer and washing machine
Withdrawal proportion for obsolete
Grade Stock duration
provision
Within 3 months 0%
4-6 months 5%
7-12 months 15%
Grade-A
1-2 years 25%
2-3 years 40%
Over 3 years 100%
Qualified 40%
Grade-B 50%
Grade-C 60%
Unqualified 60%
Disposal 65%
Sample machine 30%
Special user type that exceed the order quantity 50%
(2) Air-conditioner
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2017 to 30 June 2017
(Unless other wise specified, RMB for record in the Statement)
Withdrawal proportion for obsolete
Location level
provision
Repair 50%
Awaiting repair 70%
Store return 70%
De-stocking 70%
Overstock 100%
With respect to the inventories and delivered goods which are not vested to the above classification,
their realizable net value will be calculated by the Company based on the estimated selling price of the
inventories less estimated selling expense and related taxes. The Company re-checks the above mentioned
proportion at every end of the year. Calculated the net realizable value by difference between the estimated
sale price less the estimated sales expense and relevant taxation; after comparison with the book value of
commodity stocks and goods in transit, determined whether adjusted the proportion or not. Mould expense
will amortize in installment in usual times. Once the use-life of mould is terminated, and then transfers its
remaining cost into gains/losses, no withdrawal of obsolete provision at period-end.
12. Long-term equity investment
Long-term equity investment of the Company is mainly about investment in subsidiary, investment
in associates and investment in joint-ventures.
For long-term equity investments acquired through business combination under common control, the
initial investment cost shall be the acquirer’s share of the carrying amount of net assets of the acquiree as
of the combination date as reflected in the consolidated financial statement of the ultimate controller. If the
carrying amount of net assets of the acquiree as of the combination date is negative, the investment cost of
long-term equity investment shall be zero. For long-term equity investment acquired through business
combination not under common control, the initial investment cost shall be the combination cost.
Excluding the long-term equity investment acquired through business combination, there is also a
king of long-term equity investment acquired through cash payment, for which the actual payment for the
purchase shall be investment cost; If Long-term equity investments are acquired by issuing equity
securities, fair value of issuing equity investment shall be investment cost; for Long-term equity
investments which are invested by investors, the agreed price in investment contract or agreement shall be
investment cost; and for long-term equity 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
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2017 to 30 June 2017
(Unless other wise specified, RMB for record in the Statement)
cost, and cost of the investment is adjusted when making additional investment or writing off investment;
When calculated by equity method, current investment gains and losses represent the proportion of the net
gains and losses realized by the invested unit in current year attributable to or undertaken by the investor.
When the Company is believed to enjoy proportion of net gains and losses of invested unit, gains and
losses attributable to the Company according to its shareholding ratio is to computer out according to the
accounting policy and accounting period of the Company, on the basis of the fair value of various
recognizable assets of the invested unit as at the date of obtaining of the investment, after offset of gains
and losses arising from internal transactions with associates and joint-ventures, and finally to make
confirmation after adjustment of net profit of the invested unit. Confirmation on gains and losses from the
long-term equity investment in associates and joint-ventures held by the Company prior to the first
execution day, could only stand up with the precedent condition that debit balance of equity investment
straightly amortized according to its original remaining term has already been deducted, if the
aforementioned balance relating to the investment do exist.
In case that investor loses joint control or significant influence over investee due to disposal of part
equity interest investment, the remaining equity interest shall be calculated according to Enterprise
Accounting Principles No.22-Recognition and Measurement of Financial Instrument. Difference between
the fair value of the remaining equity interest as of the date when lose of joint control or significant
influence and the carrying value is included in current gains and losses. Other comprehensive income
recognized in respect of the original equity interest investment under equity method should be treated
according to the same basis which the investee adopts to directly dispose the relevant assets or liabilities
when ceasing adoption of equity method calculation; and also switches to cost method for calculating the
long-term equity investments which entitles the Company to have conduct control over the invested units
due to its additional investments; and switches to equity method for calculating the long-term equity
investments which entitles the Company to conduct common control or significant influence, while no
control over the invested units due to its additional investments, or the long-term equity investments which
entitles the Company with no control over the invested units any longer while with common control or
significant influence.
When disposing long-term equity investment, the balance between its carrying value and effective
price for obtaining shall be recorded into current investment income. When disposing long-term equity
investment which is calculated by equity method, the proportion originally recorded in owners’ equity
shall be transferred to current investment income according to relevant ratio, except for that other
movements of owners’ equity excluding net gains and losses of the invested units shall be recorded into
owners’ equity.
13. Investment real estate
The investment real estate of the Company includes leased houses and buildings, and is accounted
value by its cost. Cost of purchased-in investment real estate consists of payment for purchase, relevant
taxes and other expenditure which is attributable to the assets directly; while cost of self-built investment
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2017 to 30 June 2017
(Unless other wise specified, RMB for record in the Statement)
real estate is formed with all necessary expenditures occurred before construction completion of the assets
arriving at the estimated utilization state.
Consequent measurement of investment estate shall be measured by cost method. Depreciation is
provided with average service life method pursuant to the predicted service life and net rate of salvage
value. The predicted service life and net rate of salvage value and annual depreciation are listed as follows:
Predicted rate of salvage Depreciation rate per
Type Depreciation term
value annum
Houses 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
assets commencing from the date of such turning. And when self-used real estate turns to be leased out for
rental or additional capital, the fixed assets or intangible assets shall switch to investment real estate
commencing from the date of such turning. In situation of switch, the carrying value before the switch
shall be deemed as the credit value after the switch.
When investment is disposed, or out of utilization forever and no economic benefit would be
predicted to obtain through the disposal, the Company shall terminate recognition of such investment real
estate. The amount of income from disposal, transfer, discarding as scrap or damage of investment real
estate after deducting the asset’ s carrying value and relevant taxation shall be written into current gains
and losses.
14. Fixed assets
Fixed assets of the Company represent the tangible assets and assets package: held by the Company
for purpose of producing commodities, providing labor service, leasing or operational management,
service life exceeds one year, and unit price exceeds RMB 2,000, including four categories of houses and
buildings, machinery equipments, transportation equipments and other equipments.
Their credit value is determined on the basis of the cost taken for obtaining them. Of which, cost of
purchased-in fixed assets include bidding price and import duty and relevant taxes, and other expenditure
which occurs before the fixed assets arrive at the state of predicted utilization and which could be directly
attributable to the assets; while cost of self-built fixed asset is formed with all necessary expenditures
occurred before construction completion of the assets arriving at the estimated utilization state; credit value
of the fixed assets injected by investors is determined based on the agreed value of investment contracts or
agreements, while as for the agreed value of investment contracts or agreements which is not fair, it shall
take its fair value as credit value; and for fixed assets which are leased in through finance leasing, credit
value is the lower of fair value of leased assets and present value of minimized leasing payment as at the
commencing date of leasing.
Consequent expenditure related to fixed assets consists of expenditures for repair and update reform.
For those meeting requirements for reorganization of fixed assets, they would be accounted as fixed asset
cost; and for the part which is replaced, reorganization of its carrying value shall cease; for those not
meeting requirements for reorganization of fixed assets, they shall be accounted in current gains and losses
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2017 to 30 June 2017
(Unless other wise specified, RMB for record in the Statement)
as long as they occur. When fixed asset is disposed, or no economic benefit would be predicted to obtain
through utilization or disposal of the asset, the Company shall terminate reorganization of such fixed asset.
The amount of income from disposal, transfer, discarding as scrap or damage of fixed asset after deducting
the asset’ 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
depreciated while continuing to use. It adopts average service life method for withdrawing depreciation
which is treated respectively 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:
Predicted rate of salvage Depreciation rate per
No. Type Depreciation term
value annum
1 Houses and buildings 30-40 years 4%-5% 2.375%-3.20%
2 Machinery equipments 10-14 years 4%-5% 6.786%-9.60%
3 Transport equipment 5-12 years 4%-5% 7.92%-19.20%
4 Other equipments 8-12 years 4%-5% 7.92%-12.00%
The Company makes re-examination on predicted service life, predicted rate of salvage value and
depreciation method at each year-end. Any change will be treated as accounting estimation change.
15. Construction in process
Construction in process is measured with effective cost. Self-operated constructions projects are
measured with direct materials, direct salaries and direct construction expense; construction projects
undertaken by external are measured with the engineering payment payable; and engineering cost (income
abatement) of equipment-installation projects is confirmed with consideration of value of the equipments,
installation fee, and expenditure arising from trial operation of the projects. Borrowing expense and
exchange gains and losses which should be capitalized are also included in cost of construction in process.
16. Borrowing expense
Borrowing expenses include interest expense, amortization of discount or premium, auxiliary
expenses and exchange difference due to borrowing in foreign currency. The borrowing expense which
could be directly attributable to purchase or production of assets satisfying capitalization condition, starts
capitalization when capital expenditure and borrowing expense occur and when necessary purchase or
production conducted for promoting assets to reach the predicted available-for-use or available-for-sale
state; and capitalization shall cease when purchased or produced assets satisfying capitalization condition
have reached the predicted available-for-use or available-for-sale state. Other borrowing expense is
recognized as expense during the occurrence period.
Capitalization shall be exercised for interest expense actually occurred from special borrowings in
current period after deduction of the interest income arising from unutilized borrowing capital which is
saved in banks or deduction of investment income obtained from temporary investment; For
reorganization of capitalized amount of common borrowing, it equals to the weighted average of the
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2017 to 30 June 2017
(Unless other wise specified, RMB for record in the Statement)
assets whose accumulated expense or capital disburse is more than common borrowing times
capitalization rate of occupied common borrowing. Capitalization rate is determined according to
weighted average interest rate of common borrowing.
Assets satisfying capitalization principle generally refer to fixed assets, investment real estate and
inventories which can only arrive at predicted available-for-use and available-for-sale state after quite a
long time (generally over one year) in purchase or production activities.
If abnormal interruption happens during purchase or production of assets satisfying capitalization
principle and the interruption lasts over 3 months, the capitalization for the borrowing expense shall pause
until the purchase or production restarts.
17. Intangible assets
The Company holds intangible assets including land use right, trademark, patent technology and
non-patent technology. Intangible assets are measured according to the effective costs paid for obtaining
the assets. For those intangible assets purchased in by the Company, their effective cost consist of actual
payment and relevant other expenditure; for the intangible assets input by investors, effective cost is
determined according to the value agreed in investment contracts and agreements, while if the agreed
value is not fair, then effective value is confirmed according to fair value.
Land use right is averagely amortized according to its transfer term commencing from the sate of
transfer; trademark use-rights averagely amortized by 10 years; patent technology, non-patent technology
and other intangible assets is averagely amortized according to the shortest of their predicted service life,
beneficial term concluded by contract and effective term regulated by laws. Amortization amount is
recorded in assets cost and current gains and losses relevant to beneficial objectives.
Re-examination on predicted service life and amortization method of the intangible assets which
have limited service life shall be conducted at the end of each year. If changed, it would be treated as
change of accounting estimation. Re-examination on predicted service life of intangible assets which have
uncertain service life shall be conducted. For any evidence proving that service life of intangible assets is
limited, then the service life shall be estimated and the Company shall make amortization within the
predicted service life period.
18. Research and development
As for expenditure for research and development, the Company classifies it into expenditure on
research phase and development phase, based on nature of the expenditure and that whether the final
intangible assets formed by research & development is of great uncertainty. Expenditure arising during
research should be recorded in current gains and losses upon occurrence; expenditure arising during
development is confirmed as intangible assets when satisfying the following conditions:
(1) Completions of the intangible assets make it available for application or sell in technology;
(2) Equipped with plan to complete the intangible asset and apply or sell it;
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2017 to 30 June 2017
(Unless other wise specified, RMB for record in the Statement)
(3) There is market for products produced with this intangible assets or the intangible asset itself;
(4) Have sufficient technology, financial resource and other resources to support development of the
intangible assets, and have ability to apply or sell the assets;
(5) 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 gains and losses upon occurrence. Development expenditure which had been recorded in gains and
losses in previous period would not be recognized as assets in later period. Expenditure arising during
development phase which has been starting capitalization is listed in balance sheet as development
expenditure, and transferred to intangible assets since the project reaches at predicted utilization state.
19. Impairment of non-financial long-term assets
As at each balance sheet date, the Company has inspection on long-term equity investment, fixed
assets, construction in process and intangible 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 uncertain service 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 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
is recognized as impairment loss. As long as impairment loss of the aforementioned assets is recognized, it
couldn’t be switched back in later accounting periods. Recoverable amount of assets refers to the higher of
fair 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,
which leads 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
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2017 to 30 June 2017
(Unless other wise specified, RMB for record in the Statement)
greatly lower (or higher) than the predicted amount;
(7) Other indications showing possible impairment of assets.
20. Goodwill
Goodwill represents balance between equity investment cost or business combination cost under no
common control exceeding the attributable part or fair value of recognizable net assets of party invested or
purchased (obtained through business combination) as of acquisition day or purchase day.
Goodwill relating to subsidiaries is separately listed in consolidated financial statement. And goodwill
relating to associates and joint-ventures is included in carrying value of long-term equity investment.
21. Long-term deferred expenses
Long-term deferred expenses of the Company refer to the expense which has been paid out while
should be amortized from the current period and periods thereafter, with amortization term over 1 year
(excluding 1 year). Such expense is averagely amortized during the beneficial period. If such long-term
deferred expense could not bring benefit to following accounting periods, the unamortized value of the
item shall be fully transferred to current gains and losses.
22. Staff remuneration
Employee benefits mainly include all kinds of remuneration incurred in exchange for services
rendered by 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-term employee welfare.
Short-term remuneration includes: staff salary, bonus, allowances and subsidies, staff benefits, social
insurances 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 sharing
scheme, and non-monetary benefits as well as other short-term remuneration. During the accounting
period when staff provides services, the short-term remuneration actually occurred is recognized as
liabilities and shall 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-retirement benefits, etc. retirement benefit scheme represents the agreement reached by the
Company and its employees in respect of retirement benefits, or the rules or regulations established by the
Company for providing retirement 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 not obliged to make further payment. Defined benefit plan refers to retirement
benefit scheme other than defined contribution plan.
The early retirement policy for staff and workers of the Company is the compensation for
encouraging staff and workers to accept the reduction voluntarily. The employees make applications
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2017 to 30 June 2017
(Unless other wise specified, RMB for record in the Statement)
voluntarily, the two parties sign the compensation agreement a
