Stock Code: 000521, 200521 Stock Abbreviation: Changhong Meiling, Hongmeiling BAnnouncement No.: 2023-059
Changhong Meiling Co., Ltd.The Third Quarterly Report of 2023
The Company and whole members of the Board guarantee that the information disclosed is true, accurate andcomplete and there are no fictitious records, misleading statements or material omissions carried in the Report.
Important Note:
1. Board of Directors and the Supervisory Committee of Changhong Meiling Co., Ltd. (hereinafter referred to asthe Company) and its directors, supervisors and senior executives should guarantee the reality, accuracy andcompletion of the quarterly report, there are no any fictitious statements, misleading statements or importantomissions carried in this report, and shall take legal responsibilities, individual and/or joint.
2.Mr. Wu Dinggang, Person in charge of the Company, Mr. Pang Haitao, head of accounting and Mr. YangJun ,person in charger of accounting organ (accounting officer) hereby confirm that the financial information ofthis Quarterly Report is authentic, accurate and complete.
3. The Third quarterly report audited or not
□Yes √No
I. Main financial data(i) Main accounting data and financial indexesWhether it has retroactive adjustment or re-statement on previous accounting data or not
□ Yes√ No
| Current period | Increase/decrease in the period compared with the same period of the previous year | Year-begin to period-end | Increase/decrease from year-begin to period-end compared with the same period of the previous year | |
| Operating income (RMB) | 6,338,921,510.27 | 23.07% | 19,167,615,833.84 | 24.66% |
| Net profit attributable to shareholders of the listed company (RMB) | 140,719,309.64 | 38.20% | 498,774,154.38 | 207.51% |
| Net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses (RMB) | 131,279,099.55 | 76.74% | 513,268,943.37 | 554.80% |
| Net cash flow arising from operating activities (RMB) | — | — | 2,406,267,035.85 | 30.83% |
| Basic earnings per share (RMB/Share) | 0.1366 | 38.12% | 0.4843 | 209.06% |
| Diluted earnings per share (RMB/Share) | 0.1366 | 38.12% | 0.4843 | 209.06% |
| Weighted average ROE | 2.69% | Increase by 0.61 percentage points | 9.26% | Increase by 5.95 percentage points |
| End of this period | End of last period | Changes of this period-end over same period-end of last year | ||
| Total assets (RMB) | 19,316,478,659.62 | 16,200,361,212.80 | 19.23% | |
| Owners’ equity attributable to shareholders of listed company (RMB) | 5,586,633,843.97 | 5,168,286,872.09 | 8.09% | |
(ii)Items of non-recurring gains and losses
√ Applicable □ Not applicable
In RMB
| Item | Current amount | Year-begin to period-end | Note |
| Gains/losses from the disposal of non-current asset (including the write-off that accrued for impairment of assets) | 1,379,107.45 | 1,379,107.45 | See "Proceeds from Asset Disposal" |
| Governmental subsidy calculated into current gains and losses(while closely related with the normal business of the Company, the government subsidy that accord with the provision of national policies and are continuously enjoyed in line with a certain standard quota or quantity are excluded) | 24,077,197.41 | 52,239,458.95 | See "Other Earnings" for details. |
| Gain and loss from change of the fair value arising from transactional monetary assets, transactional financial liabilities as held as well as the investment income arising from disposal of the transactional monetary assets, transactional financial liabilities and financial assets available for sale excluding the effective hedging transaction in connection with the Company’s normal business | -16,349,602.74 | -75,564,024.77 | See "Fair value Change income" and "Investment Income" for details. |
| Reversal of the account receivable depreciation reserves subject to separate impairment test | 866,709.84 | 4,454,874.91 | See "Accounts Receivable" for details. |
| Other non-operating income and expenses other than the above | 1,836,340.33 | 9,525,560.91 | See "Non-operating Income" and "Non-operating Expenses" for details. |
| Less: impact on income tax | 252,305.52 | -602,437.72 | |
| Impact on minority shareholders’ equity (post-tax) | 2,117,236.68 | 7,132,204.16 | |
| Total | 9,440,210.09 | -14,494,788.99 | -- |
Details of other profit and loss items that meet the non-recurring profit and loss definition
□ Applicable √ Not applicable
There are no other gains/losses items that meet the definition of non-recurring gains/losses in the Company.Explain the items defined as recurring profit (gain)/loss according to the lists of extraordinary profit (gain)/lossin Q&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public--- Extraordinary Profit/loss
□ Applicable √ Not applicable
There are no items defined as recurring profit (gain)/loss according to the lists of extraordinary profit (gain)/lossin Q&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public--- Extraordinary Profit/loss(iii)Particulars about material changes in items of main accounting statement financial index andexplanations of reasons
√ Applicable □Not applicable
1.Changes and reasons of items in balance sheet
In RMB
| Item | Ending balance | Opening balance | Changes ratio | Reasons of changes |
| Trading financial assets | 422,556,947.00 | 57,660,588.67 | 632.83% | Mainly due to the purchase of wealth management products by the Company in the current period. |
| Notes receivable | 38,674.50 | - | - | Mainly due to the Company's newly increased commercial acceptance bills in the current period |
Account receivable
| Account receivable | 1,707,094,454.29 | 1,306,871,945.85 | 30.62% | Mainly due to the growth of operation revenue in the current period |
Contract assets
| Contract assets | 29,701,096.48 | 3,530,922.13 | 741.17% | Mainly due to the company's new project quality guarantee fund in the current period |
| Non-current asset due within one year | 292,244,708.33 | 170,167,638.89 | 71.74% | Mainly due to the increase in debt investment due within one year of the current period |
| Other current assets | 262,155,370.10 | 120,589,431.85 | 117.39% | Mainly due to the increase in time deposits in the current period |
| Creditor's rights investment | 235,314,579.15 | 121,543,750.00 | 93.60% | Mainly due to the increase in the Company's large certificates of deposit in the current period |
| Long-term amortization | 22,192,272.11 | 14,900,600.59 | 48.94% | Mainly due to the increase in the Company's asset overhaul in the current period |
| Other non-current assets | 2,648,540.47 | 893,238.57 | 196.51% | Mainly due to the increase in the Company's prepaid project payment in the current period |
| Short-term loan | 1,069,166,879.76 | 674,143,916.67 | 58.60% | Mainly due to the increase in bank borrowings in the current period |
Trading financialliabilities
| Trading financial liabilities | 80,786,616.67 | 41,961,524.78 | 92.53% | Mainly due to the non cancelable orders and change of the valuation from forward foreign exchange contracts |
Taxes payable
| Taxes payable | 105,393,081.13 | 80,287,878.62 | 31.27% | Mainly due to the increase in VAT payable by the Company in the current period |
| Non-current liabilities due within one year | 40,071,769.96 | 30,287,099.08 | 32.31% | Mainly due to the increase in long-term borrowings due within one year of the current period |
| Special reserve | 13,238,702.97 | 2,467,205.78 | 436.59% | Mainly due to the Company's provision of safety production expenses in the current period. |
2.Changes and reasons of items in profit statement
In RMB
| Item | Current period | Amount at the same period of last year | Changes ratio | Reasons of changes |
| Financial expenses | -107,571,987.60 | -79,277,613.98 | -35.69% | Mainly due to the YOY increases in interest expenses |
| Income from fair value changes | -63,928,733.56 | 6,783,043.30 | -1042.48% | Mainly due to the non cancelable orders and change of the fair value of forward foreign exchange contract changes |
| Investment earnings | 6,121,002.68 | 19,970,558.55 | -69.35% | Mainly due to the Company's forward foreign exchange contract delivery loss in the current period and the profit in the same period of the previous year |
| Credit impairment loss | -93,458,661.22 | -61,885,204.97 | 51.02% | Mainly due to the YOY increase in impairment loss from account receivable |
| Loss of asset impairment | -19,904,174.33 | -35,044,901.69 | -43.20% | Mainly due to the YOY decrease in the provision for the Company's inventory price decline in the current period |
Gains on disposal ofassets
| Gains on disposal of assets | 1,379,107.45 | 9,653,201.02 | -85.71% | Mainly due to the YOY decrease in the Company's asset disposal income in the current period |
| Non-operating income | 13,003,292.01 | 7,725,531.66 | 68.32% | Mainly due to the YOY increase in revenue such as liquidated damages received by the Company in the current period |
Income tax expenses
| Income tax expenses | 4,446,696.74 | -9,091,804.45 | 148.91% | Mainly due to the increase in income tax expense due to the increase in the Company's taxable income in the current period |
3.Changes and reasons of items in cash flow statement
In RMB
| Item | Current period | Amount at the same period of last year | Changes ratio | Reasons of changes |
| Other cash received concerning operation activities | 73,343,301.56 | 172,312,892.42 | -57.44% | Mainly due to the YOY decrease in government subsidies received by the Company in the current period. |
| Cash received from recovery of investment | 630,000,000.00 | 323,322,268.35 | 94.85% | Mainly due to the YOY increase in the Company's withdrawal of wealth management products in the current period |
| Net cash received from disposal of fixed assets, intangible assets and other long-term assets | 4,027,612.46 | 16,653,271.93 | -75.81% | Mainly due to the YOY decrease in cash received by the Company for the disposal of assets in the current period. |
| Cash received from absorbing investment | - | 368,459,272.52 | -100.00% | Mainly due to the receipt of raised funds by its subsidiary Zhongke Meiling in the same period of the previous year, and there was no such receipt in this period. |
| Cash received from borrowing | 1,135,721,085.04 | 868,040,918.37 | 30.84% | Mainly due to the YOY increase in bank borrowings obtained by the company in this period |
| Other cash received concerning financing activities | 250,002,913.48 | 11,404,482.95 | 2092.15% | Mainly due to the limited recovery of the Company's guarantee deposits in the current period |
| Other cash paid concerning financing activities | 107,503,081.30 | 869,994,470.14 | -87.64% | Mainly due to the YOY decrease in the Company's guarantee deposits restriction in the current period |
| Influence on cash and cash equivalents due to fluctuation in exchange rate | 1,594,491.69 | 47,997,201.13 | -96.68% | Mainly due to the change of exchange rate in the current period |
II. Shareholders(i)Total number of common shareholders and preference shareholders with voting rights recovered andtop ten shareholders
In Shares
| Total number of common shareholders at the end of report period | 50,291 | Total preference shareholders with voting rights recovered at end of reporting period (if applicable) | 0 | ||||||||
| Top ten shareholders | |||||||||||
| Shareholder’s name | Nature of shareholder | Proportion of shares held | Amount of shares held | Amount of lock-up shares held | Information of shares pledged, tagged or frozen | ||||||
| State of share | Amount | ||||||||||
| Sichuan Changhong Electric Co., Ltd. | State-owned legal person | 24.12% | 248,457,724 | 0 | - | -- | |||||
| Hefei Industry Investment Holding (Group) Co., Ltd. | State-owned legal person | 4.64% | 47,823,401 | 0 | - | - | |||||
| CHANGHONG (HK) TRADING LIMITED | Foreign legal person | 2.63% | 27,077,797 | 0 | - | - | |||||
| CAO SHENGCHUN | Foreign natural person | 1.43% | 14,766,086 | 0 | - | - | |||||
| Bank of China－Investment quantitative selection of stock initiated securities investment fund | Domestic non-state-owned legal person | 0.96% | 9,847,692 | 0 | - | - | |||||
| China construction Bank－Bank of Communications Schroeder consumer new drive equity securities investment fund | Domestic non-state-owned legal person | 0.85% | 8,715,868 | 0 | - | - | |||||
| Agricultural bank of China－Bank of Communications Schroder domestic demand growth of a year holding period of hybrid securities investment fund | Domestic non-state-owned legal person | 0.76% | 7,843,800 | 0 | - | - | |||||
| Bank of China－Jiashi theme selected hybrid securities investment fund | Domestic non-state-owned legal person | 0.68% | 7,046,809 | 0 | - | - | |||||
| Phillip Securities( HK) Co., Ltd. | Foreign legal person | 0.61% | 6,296,913 | 0 | - | - | |||||
| Wu Lili | Domestic natural person | 0.57% | 5,875,000 | 0 | - | - | |||||
| Top ten shareholders with unrestricted shares held | |||||||||||
| Shareholder’s name | Amount of unrestricted shares held | Type of shares | |||||||||
| Type | Amount | ||||||||||
| Sichuan Changhong Electric Co., Ltd. | 248,457,724 | RMB ordinary shares | 248,457,724 | |
| Hefei Industry Investment Holding (Group) Co., Ltd. | 47,823,401 | RMB ordinary shares | 47,823,401 | |
| CHANGHONG (HK) TRADING LIMITED | 27,077,797 | Domestically listed foreign shares | 27,077,797 | |
| CAOSHENGCHUN | 14,766,086 | Domestically listed foreign shares | 14,766,086 | |
| Bank of China－Investment quantitative selection of stock initiated securities investment fund | 9,847,692 | RMB ordinary shares | 9,847,692 | |
| China construction Bank－Bank of Communications Schroeder consumer new drive equity securities investment fund | 8,715,868 | RMB ordinary shares | 8,715,868 | |
| Agricultural bank of China－Bank of Communications Schroder domestic demand growth of a year holding period of hybrid securities investment fund | 7,843,800 | RMB ordinary shares | 7,843,800 | |
| Bank of China－Jiashi theme selected hybrid securities investment fund | 7,046,809 | RMB ordinary shares | 7,046,809 | |
| Phillip Securities( HK) Co., Ltd. | 6,296,913 | Domestically listed foreign shares | 6,296,913 | |
| Wu Lili | 5,875,000 | RMB ordinary shares | 5,875,000 | |
| Explanation on associated relationship among the aforesaid shareholders | Among the above shareholders, CHANGHONG (HK) TRADING LIMITED (hereinafter referred to as Hong Kong Changhong) is the wholly-owned subsidiary of Sichuan Changhong Electric Co., Ltd.; except the shares of the Company directly held of the B shares of the Company, 6,296,913 shares of B-stock are also held through Phillip Securities (Hong Kong) Co., Ltd., the foregoing shareholders constitute persons of uniform action. There existed no associated relationship or belong to the concerted actors as specified in the Measures for the Administration of Information Disclosure of Shareholder Equity Changes of Listed Companies among Sichuan Changhong Electric Co., Ltd, Hong Kong Changhong and other top 7 shareholders, The company neither knows whether there is any association among other shareholders, nor knows whether other shareholders belong to the persons acting in concert that is stipulated in the “Administrative Measures on Information Disclosure of Changes in Shareholding of Listed Companies”. | |||
| Explanation on top ten shareholders involving margin business (if applicable) | As of September 30,2023, among the top 10 common shareholders, Wu Lili Holds 5,500,000 shares of the Company through Customer credit trading secured account of Guotai Junan Securities Co., Ltd., and 375,000 shares hold through common securities account, thus 5,875,000 shares of the Company are held in total. | |||
(ii) Total shareholders with preferred stock held and shares held by top ten shareholders with preferredstock held
□ Applicable √ Not applicable
III. Other important matters
√Applicable □Not applicable
| Overview | Date for disclosure | Information index for temporary report disclosure |
| After the resolution adopted by the board of directors , the board of supervisors and shareholders General Meeting of the Company , it’s agreed that the Company will with its own funds of 45 million yuan participate in the establishment of "Sichuan Hongyun Information Technology Venture Capital Fund Partnership (Limited Partnership)" (tentative name, subject to the approval and registration of the market regulatory department), and serve as a limited partner of the fund. | January 18, 2023,April 26,2023 | Juchao website http://www.cninfo.com.cn（No.:2023-002,2023-003,2023-004,2023-030） |
| After the resolution adopted by the board of directors , the board of supervisors and shareholders General Meeting of the Company, it’s agreed that the Company and its subsidiaries will make a single provision for bad debts for receivables of the customer Changhong RUBA Electric Appliance Co., Ltd(an associate of Zhongshan Changhong Electric Appliance Co., Ltd-a subsidiary to the Company) in the fourth quarter of 2022, and agreed that the Company, its subsidiaries Hefei Meiling Group Holdings Co., Ltd. and Sichuan Changhong Air Conditioning Co., Ltd and Sichuan Zhiyijia Network Technology Co., Ltd-an associate of the Company, made a single provision for bad debts for the receivables of Gome System (Gome System is the collective name of Gome's subsidiaries, branches, offices and agencies at all levels), with the total amount for the aforementioned single provisions for bad debts of 101,962,546.44 yuan. | January 18, 2023,April 26,2023 | Juchao website http://www.cninfo.com.cn（No.:2023-002,2023-003,2023-005,2023-030） |
| After the resolution adopted by the board of directors , the board of supervisors and shareholders General Meeting of the Company, The Profit Distribution Plan of 2022 was deliberated and approved, meanwhile, independent director of the Company expressed their independent approval of the Plan. By focusing on the investor’s interest and long-term development needs, Based on the total share capital of the Company of 1,029,923,715 shares on December 31, 2022,distributed 0.9 yuan (tax included) in cash for every 10 shares to whole shareholders, no bonus shares and no share capital increased from public reserves. After distribution, total share capital of the Company remains unchanged. The remaining accumulated retain profit of the parent company amounted to 971,443,732.63 yuan, and the remaining retained profit will carry forward for distribution in later years. On June 10,2023,the Company disclosed the "2022 Annual Profit Distribution Plan Implementation Announcement" and implemented the aforementioned profit distribution plan. | March 31,2023, April 26, 2023, June 10,2023 | Juchao website http://www.cninfo.com.cn（No.:2023-011,2023-012,2023-014,2023-030,2023-037） |
| After the resolution adopted by the board of directors , the board of supervisors and shareholders General Meeting of the Company, it’s agreed to renew the appointment of ShineWing CPA (LLP) as the auditor of the Company's 2023 annual financial report and internal control for one year. | March 31,2023, April 26, 2023 | Juchao website http://www.cninfo.com.cn（No.:2023-011,2023-015,2023-030） |
| After the resolution adopted by the board of directors and shareholders General Meeting of the Company, it’s agreed that the Company and its subsidiaries will carry out forward foreign exchange fund trading business from July 1, 2023 to June 30, 2024, with a transaction balance of not more than USD 1.046 billion (mainly including: USD, AUD, EURO, and all other foreign currencies converted into USD), and the delivery period of a single business shall not exceed 1 year. | March 31,2023, April 26, 2023 | Juchao website http://www.cninfo.com.cn（No.:2023-011,2023-016,2023-030） |
| After the resolution of the board of directors and the resolution of the board of supervisors of the Company, in accordance with the principles of legal compliance, standardized operation, one-by-one examination and approval, and account write-off records, Zhongshan Changhong Electric Appliance Co., Ltd., a subsidiary of the company, was agreed to write off a total of 1,307,424.41 yuan of bad debts that had been truly unrecoverable. | March 31,2023 | Juchao website http://www.cninfo.com.cn（No.:2023-011,2023-012,2023-017） |
| After the resolution adopted by the board of directors of the Company, it’s approved that the Company and its subsidiaries will apply for a special credit line of up to 400 million yuan for the bill pool from Hefei Branch of Industrial Bank Co., Ltd; will apply for a special credit line of up to 300 million yuan for the bill pool from Hefei Branch of Ping An Bank Co., Ltd; and will apply for a special credit line of up to 400 million yuan for the bill pool from Hefei Branch of Jiujiang Bank Co., Ltd. | March 31,2023, April 26, 2023 | Juchao website http://www.cninfo.com.cn（No.:2023-011,2023-018,2023-030） |
| From April 17, 2023 to April 19, 2023, the Company's stock closing price rise for three consecutive trading days had accumulated more than 20% deviation from the stock index. According to the relevant regulations of the Shenzhen Stock Exchange, the Company issued the "Announcement of Abnormal Fluctuation in Stock Trading". According to the Company's self-examination, the Company, the controlling shareholder and the actual controller did not have any material matters about the Company that should be disclosed but have not been disclosed or were in the planning stage. | April 20,2023 | Juchao website http://www.cninfo.com.cn（No.:2023-029） |
| After the resolution of the Company's board of directors and the resolution of shareholders' general meeting, according to the Company's operation and management needs, and combined with the actual situation of the Company, it’s agreed to amend some articles of the Articles of Association of the Company. | April 20,2023, May 11,2023 | Juchao website http://www.cninfo.com.cn（No.:2023-023,2023-027,2023-033） |
| On April 27, 2023, the Company received a notice from Mr. Tang Youdao, Vice President of the Company, that based on his firm confidence in the Company's future development prospect and recognition of the Company's long-term investment value, Mr. Tang Youdao increased his holdings by 800,000 RMB ordinary shares (A shares) of the Company by way of centralized bidding through the trading system of the Shenzhen Stock | April 29,2023 | Juchao website http://www.cninfo.com.cn（No.:2023-032） |
| Exchange. | ||
| In order to establish a variety of shareholder return mechanisms, thank shareholders for their long-term care and support for the Company, and meanwhile let shareholders experience the Company's new products and services, and improve investors' understanding and recognition of the Company's intrinsic value, the Company held the "Meiling 40th Anniversary Shareholder Gratitude Giving Festival" from May 20, 2023 to May 28, 2023. | May 18,2023 | http://www.cninfo.com.cn（No.:2023-034） |
| Mr. Liu Hongwei, former executive vice president of the Company, applied to resign from his position as the executive vice president of the Company due to personal reasons; After resigning from Executive Vice President, Mr. Liu Hongwei still works for the Company. | May 25,2023 | Juchao website http://www.cninfo.com.cn（No.:2023-036） |
| After the resolution of the board of directors of the Company, it’s agreed to adjust the equity structure of Sichuan Hongmei Intelligent Technology Co., Ltd. (hereinafter referred to as "Hongmei Company"), that was, the total 100% equity held by the original shareholders Sichuan Changhong Air Conditioning Co., Ltd. (a wholly-owned subsidiary of the Company, which holds 99% of the equity of Hongmei Company) and Mianyang Meiling Refrigeration Co., Ltd. (a wholly-owned subsidiary of the Company, which holds 1% of the equity of Hongmei Company) was transferred to the Company-which thus directly holds it, with the equity transfer price was based on the audited net asset value of 22,725,052.60 yuan of Hongmei Companyas of December 31, 2022. | August 18,2023 | Juchao website http://www.cninfo.com.cn（No.:2023-040） |
| After the resolution of the board of directors of the Company, it’s agreed to cancel Hefei Meiling Electric Marketing Co., Ltd., a wholly-owned subsidiary of the Company. | August 18,2023 | Juchao website http://www.cninfo.com.cn（No.:2023-040） |
| After the resolution of the board of directors of the Company, it’s agreed that its subsidiary, Zhongshan Changhong Electric Appliance Co., Ltd., will invest 36.526 million yuan by its own funds to carry out technical transformation of its production line to improve its manufacturing capacity, reduce costs and improve efficiency, and enhance product competitiveness. | August 18,2023 | Juchao website http://www.cninfo.com.cn（No.:2023-040） |
| Approved by the resolution of the board of directors of the Company, in accordance with the Company's development strategy and the business development needs of Hongyuan Geoenergy Heat Pump Technology (Zhongshan) Co., Ltd. (hereinafter referred to as "Heat Pump Zhongshan")-a subsidiary to the Company’s subsidiary-Sichuan Changhong Air Conditioning Co., Ltd., in order to solve the problem of insufficient production capacity of the Heat Pump Zhongshan production and manufacturing base, further improve its production and manufacturing capacity, and enhance the competitiveness and profitability of its products, it’s agreed that Heat Pump Zhongshan will implement the relocation and expansion project with its own funds of 34.62 million yuan to ensure its future business development. | August 18,2023 | Juchao website http://www.cninfo.com.cn（No.:2023-040） |
| After the resolution of the Company's directors and he resolution of shareholders' general meeting of the Company, it’s agreed to provide an additional credit guarantee line of not more than RMB 80 million for Meiling life Appliances, with a guarantee period of one year, for its daily production and operation. | August 18,2023 | Juchao website http://www.cninfo.com.cn（No.:2023-043） |
| Sichuan Hongyun New Generation Information Technology Venture Capital Fund Partnership (Limited Partnership), jointly funded by the Company and its controlling shareholder Sichuan Changhong Electric Co., Ltd. (hereinafter referred to as "Sichuan Changhong"), and the controlling shareholder’s subsidiary Sichuan Changhong Jiahua Digital Technology Co., Ltd. (hereinafter referred to as "Jiahua Digital") and other investment institutions, was established in October 2015 with a duration of 8 years and will expire in October 2023. After the resolution of the board of directors and the resolution of the board of supervisors of the Company, it’s agreed to extend the existence of the fund for 1 year (the specific expiry date shall be subject to the industrial and commercial registration), that is, the cumulative duration of the fund after this extension is 9 years. | September 8,2023 | http://www.cninfo.com.cn（No.:2023-044,2023-045,2023-046） |
| After the resolution of the board of directors and the board of supervisors of the Company, it’s agreed that the Company will increase the estimated amount of not to exceed 25 million yuan (excluding tax) of routine related party transactions such as the purchase of commodities and raw materials between the Company and its subsidiaries and Sichuan Changhong Electronics Holding Group Co., Ltd. and its subsidiaries in 2023 ; and will increase the estimated amount of not to exceed 10 million yuan (excluding tax) of routine related party transactions such as the purchase of goods between the Company and its subsidiaries and Sichuan Changhong Electronic Parts Co., Ltd. in 2023. | September 8,2023 | Juchao website http://www.cninfo.com.cn（No.:2023-044,2023-045,2023-047） |
| After the resolution of the board of directors of the Company, in order to further improve the production and manufacturing capacity of Sichuan Changhong Air Conditioning Co., Ltd. (hereinafter referred to as "Changhong Air Conditioning") and meet its business development needs, it’s agreed to Changhong Air Conditioning to implement the capacity improvement and transformation project with its own funds of 32,206,700 yuan; Meanwhile, in order to further improve the production and manufacturing system capacity of Changhong Air Conditioning and meet its needs for improvement in production efficiency, product quality, on-site image, and prevent potential safety hazards, it’s agreed to Changhong Air Conditioning to carry out technical transformation with its own funds of 17,135,700 yuan. | September 8,2023 | Juchao website http://www.cninfo.com.cn（No.:2023-044） |
IV. Quarterly financial statements(i) Financial statement
1. Consolidate Balance Sheet
Prepared by Changhong Meiling Co., Ltd.
In RMB
| Item | September 30,2023 | January 1, 2023 |
| Current assets: | ||
| Monetary fund | 8,646,007,671.31 | 6,839,421,779.13 |
| Settlement provisions | ||
| Capital lent | ||
| Trading financial assets | 422,556,947.00 | 57,660,588.67 |
| Derivative financial assets | ||
| Note receivable | 38,674.50 | |
| Account receivable | 1,707,094,454.29 | 1,306,871,945.85 |
| Receivable financing | 1,527,554,388.08 | 1,446,358,719.88 |
| Account paid in advance | 34,714,711.68 | 45,859,491.55 |
| Insurance receivable | ||
| Reinsurance receivables | ||
| Contract reserve of reinsurance receivable | ||
| Other account receivable | 65,938,030.81 | 88,354,803.24 |
| Including: Interest receivable | ||
| Dividend receivable | ||
| Buying back the sale of financial assets | ||
| Inventory | 1,800,812,409.17 | 1,710,306,933.71 |
| Contract assets | 29,701,096.48 | 3,530,922.13 |
| Assets held for sale | ||
| Non-current asset due within one year | 292,244,708.33 | 170,167,638.89 |
| Other current assets | 262,155,370.10 | 120,589,431.85 |
| Total current assets | 14,788,818,461.75 | 11,789,122,254.90 |
| Non-current assets: | ||
| Loans and payments on behalf | ||
| Creditor's rights investment | 235,314,579.15 | 121,543,750.00 |
| Other Creditor's rights investment | ||
| Long-term account receivable | ||
| Long-term equity investment | 105,834,056.10 | 100,384,428.50 |
| Investment in other equity instrument | ||
| Other non-current financial assets | 675,882,782.31 | 628,549,448.31 |
| Investment real estate | 51,414,881.00 | 52,898,060.89 |
| Fixed assets | 2,188,206,930.45 | 2,229,553,866.96 |
| Construction in progress | 50,553,531.15 | 66,522,492.77 |
| Productive biological asset | ||
| Oil and gas asset | ||
| Right-of-use assets | 31,014,133.24 | 36,646,135.10 |
| Intangible assets | 877,640,437.55 | 900,568,008.21 |
| Expense on research and development | 121,489,620.31 | 102,148,390.57 |
| Goodwill | ||
| Long-term expenses to be apportioned | 22,192,272.11 | 14,900,600.59 |
| Deferred income tax asset | 165,468,434.03 | 161,565,695.30 |
| Other non-current assets | 2,648,540.47 | 893,238.57 |
| Total non-current asset | 4,527,660,197.87 | 4,416,174,115.77 |
| Total assets | 19,316,478,659.62 | 16,205,296,370.67 |
| Current liabilities: | ||
| Short-term loans | 1,069,166,879.76 | 674,143,916.67 |
| Loan from central bank | ||
| Capital borrowed | ||
| Trading financial liability | 80,786,616.67 | 41,961,524.78 |
| Derivative financial liability | ||
| Note payable | 6,393,336,445.87 | 4,964,374,512.60 |
| Account payable | 3,607,840,583.74 | 2,917,997,138.00 |
| Accounts received in advance | ||
| Contract liabilities | 309,609,196.24 | 358,755,397.77 |
| Selling financial asset of repurchase | ||
| Absorbing deposit and interbank deposit | ||
| Security trading of agency | ||
| Security sales of agency | ||
| Wage payable | 376,298,673.25 | 348,154,915.13 |
| Taxes payable | 105,393,081.13 | 80,287,878.62 |
| Other account payable | 1,003,782,295.20 | 828,207,568.21 |
| Including: Interest payable | ||
| Dividend payable | 5,384,407.44 | 4,978,994.16 |
| Commission charge and commission payable | ||
| Reinsurance payable | ||
| Liability held for sale | ||
| Non-current liabilities due within one year | 40,071,769.96 | 30,287,099.08 |
| Other current liabilities | 17,880,068.15 | 22,605,269.51 |
| Total current liabilities | 13,004,165,609.97 | 10,266,775,220.37 |
| Non-current liabilities: | ||
| Insurance contract reserve |
| Long-term loans | 128,000,000.00 | 148,000,000.00 |
| Bonds payable | ||
| Including: Preferred stock | ||
| Perpetual capital securities | ||
| Lease liability | 23,432,385.40 | 28,164,287.97 |
| Long-term account payable | 886,582.50 | 1,145,286.48 |
| Long-term wages payable | 11,909,163.22 | 10,790,859.64 |
| Accrual liability | 31,667,667.06 | 32,685,631.78 |
| Deferred income | 140,348,297.22 | 161,013,911.91 |
| Deferred income tax liabilities | 13,557,581.74 | 17,509,503.08 |
| Other non-current liabilities | ||
| Total non-current liabilities | 349,801,677.14 | 399,309,480.86 |
| Total liabilities | 13,353,967,287.11 | 10,666,084,701.23 |
| Owner’s equity: | ||
| Share capital | 1,029,923,715.00 | 1,029,923,715.00 |
| Other equity instrument | ||
| Including: Preferred stock | ||
| Perpetual capital securities | ||
| Capital public reserve | 2,806,493,904.30 | 2,806,493,904.30 |
| Less: Treasury shares | ||
| Other comprehensive income | -19,571,555.60 | -20,881,462.63 |
| Special reserve | 13,238,702.97 | 2,467,205.78 |
| Surplus public reserve | 441,218,691.48 | 441,218,691.48 |
| Provision of general risk | ||
| Retained profit | 1,315,330,385.82 | 909,249,365.79 |
| Total owner’ s equity attributable to parent company | 5,586,633,843.97 | 5,168,471,419.72 |
| Minority interests | 375,877,528.54 | 370,740,249.72 |
| Total owner’ s equity | 5,962,511,372.51 | 5,539,211,669.44 |
| Total liabilities and owner’ s equity | 19,316,478,659.62 | 16,205,296,370.67 |
Legal Representative: Wu DinggangPerson in charge of accounting works: Pang HaitaoPerson in charge of accounting institute: Yang Jun
2. Consolidated Income statement between the beginning of the year and end of the report period
In RMB
| Item | Current period | Last period |
| I. Total operating income | 19,167,615,833.84 | 15,375,374,318.73 |
| Including: Operating income | 19,167,615,833.84 | 15,375,374,318.73 |
| Interest income |
| Insurance gained | ||
| Commission charge and commission income | ||
| II. Total operating cost | 18,542,771,945.98 | 15,220,350,623.36 |
| Including: Operating cost | 16,590,072,964.21 | 13,432,282,408.89 |
| Interest expense | ||
| Commission charge and commission expense | ||
| Cash surrender value | ||
| Net amount of expense of compensation | ||
| Net amount of withdrawal of insurance contract reserve | ||
| Bonus expense of guarantee slip | ||
| Reinsurance expense | ||
| Tax and extras | 144,925,448.61 | 121,545,023.40 |
| Sales expense | 1,234,618,461.71 | 1,082,452,911.29 |
| Administrative expense | 265,996,948.80 | 276,767,176.89 |
| R&D expense | 414,730,110.25 | 386,580,716.87 |
| Financial expenses | -107,571,987.60 | -79,277,613.98 |
| Including: Interest expenses | 19,220,542.10 | 24,006,944.91 |
| Interest income | 138,087,696.57 | 112,113,274.51 |
| Add: other income | 58,843,835.36 | 78,117,281.45 |
| Investment income (Loss is listed with “-”) | 6,121,002.68 | 19,970,558.55 |
| Including: Investment income on affiliated company and joint venture | 15,050,230.24 | 7,410,470.62 |
| The termination of income recognition for financial assets measured by amortized cost | -21,839,275.77 | -21,020,148.10 |
| Exchange income (Loss is listed with “-”) | ||
| Net exposure hedging income (Loss is listed with “-”) | ||
| Income from change of fair value (Loss is listed with “-”) | -63,928,733.56 | 6,783,043.30 |
| Loss of credit impairment (Loss is listed with “-”) | -93,458,661.22 | -61,885,204.97 |
| Losses of devaluation of asset (Loss is listed with “-”) | -19,904,174.33 | -35,044,901.69 |
| Income from assets disposal (Loss is listed with “-”) | 1,379,107.45 | 9,653,201.02 |
| III. Operating profit (Loss is listed with “-”) | 513,896,264.24 | 172,617,673.03 |
| Add: Non-operating income | 13,003,292.01 | 7,725,531.66 |
| Less: Non-operating expense | 3,477,731.10 | 4,890,597.15 |
| IV. Total profit (Loss is listed with “-”) | 523,421,825.15 | 175,452,607.54 |
| Less: Income tax expense | 4,446,696.74 | -9,091,804.45 |
| V. Net profit (Net loss is listed with “-”) | 518,975,128.41 | 184,544,411.99 |
| (i) Classify by business continuity | ||
| 1. Net profit from continuing operations (net loss listed with “-”) | 518,975,128.41 | 184,544,411.99 |
| 2. Net profit from termination of operations (net loss listed with “-”) | ||
| (ii) Classify by ownership |
| 1.Net profit attributable to owner’s of parent company | 498,774,154.38 | 162,198,444.30 |
| 2.Minority shareholders’ gains and losses | 20,200,974.03 | 22,345,967.69 |
| VI. Net after-tax of other comprehensive income | 1,562,287.57 | 733,928.17 |
| Net after-tax of other comprehensive income attributable to owners of parent company | 1,309,907.03 | 666,427.72 |
| (i) Other comprehensive income items which will not be reclassified subsequently to profit of loss | ||
| 1.Changes of the defined benefit plans that re-measured | ||
| 2.Other comprehensive income under equity method that cannot be transfer to gain/loss | ||
| 3.Change of fair value of investment in other equity instrument | ||
| 4.Fair value change of enterprise's credit risk | ||
| 5. Other | ||
| (ii) Other comprehensive income items which will be reclassified subsequently to profit or loss | 1,309,907.03 | 666,427.72 |
| 1.Other comprehensive income under equity method that can transfer to gain/loss | ||
| 2.Change of fair value of other debt investment | ||
| 3.Amount of financial assets re-classify to other comprehensive income | ||
| 4.Credit impairment provision for other debt investment | ||
| 5.Cash flow hedging reserve | ||
| 6.Translation differences arising on translation of foreign currency financial statements | 1,309,907.03 | 666,427.72 |
| 7.Other | ||
| Net after-tax of other comprehensive income attributable to minority shareholders | 252,380.54 | 67,500.45 |
| VII. Total comprehensive income | 520,537,415.98 | 185,278,340.16 |
| Total comprehensive income attributable to owners of parent Company | 500,084,061.41 | 162,864,872.02 |
| Total comprehensive income attributable to minority shareholders | 20,453,354.57 | 22,413,468.14 |
| VIII. Earnings per share: | ||
| (i) Basic earnings per share | 0.4843 | 0.1567 |
| (ii) Diluted earnings per share | 0.4843 | 0.1567 |
Enterprise combine under the same control in the Period, the combined party realized net profit of 0.00 Yuanbefore combination, and realized 0.00 Yuan at last period for combined party.Legal Representative: Wu DinggangPerson in charge of accounting works: Pang HaitaoPerson in charge of accounting institute: Yang Jun
3. Consolidated Cash Flow Statement Between the Beginning of the Year and End of the Report Period
In RMB
| Item | Current period | Last period |
| I. Cash flows arising from operating activities: | ||
| Cash received from selling commodities and providing labor services | 19,690,794,267.32 | 16,406,630,708.13 |
| Net increase of customer deposit and interbank deposit | ||
| Net increase of loan from central bank | ||
| Net increase of capital borrowed from other financial institution | ||
| Cash received from original insurance contract fee | ||
| Net cash received from reinsurance business | ||
| Net increase of insured savings and investment | ||
| Cash received from interest, commission charge and commission | ||
| Net increase of capital borrowed | ||
| Net increase of returned business capital | ||
| Net cash received by agents in sale and purchase of securities | ||
| Write-back of tax received | 545,575,086.82 | 526,357,420.68 |
| Other cash received concerning operating activities | 73,343,301.56 | 172,312,892.42 |
| Subtotal of cash inflow arising from operating activities | 20,309,712,655.70 | 17,105,301,021.23 |
| Cash paid for purchasing commodities and receiving labor service | 15,509,311,028.48 | 13,083,886,564.95 |
| Net increase of customer loans and advances | ||
| Net increase of deposits in central bank and interbank | ||
| Cash paid for original insurance contract compensation | ||
| Net increase of capital lent | ||
| Cash paid for interest, commission charge and commission | ||
| Cash paid for bonus of guarantee slip | ||
| Cash paid to/for staff and workers | 1,443,348,831.94 | 1,262,282,443.43 |
| Taxes paid | 402,056,677.82 | 429,330,130.27 |
| Other cash paid concerning operating activities | 548,729,081.61 | 490,575,495.74 |
| Subtotal of cash outflow arising from operating activities | 17,903,445,619.85 | 15,266,074,634.39 |
| Net cash flows arising from operating activities | 2,406,267,035.85 | 1,839,226,386.84 |
| II. Cash flows arising from investing activities: | ||
| Cash received from recovering investment | 630,000,000.00 | 323,322,268.35 |
| Cash received from investment income | 34,088,250.87 | 34,407,108.44 |
| Net cash received from disposal of fixed, intangible and other long-term assets | 4,027,612.46 | 16,653,271.93 |
| Net cash received from disposal of subsidiaries and other units | ||
| Other cash received concerning investing activities | 135,312,830.48 | 110,063,532.63 |
| Subtotal of cash inflow from investing activities | 803,428,693.81 | 484,446,181.35 |
| Cash paid for purchasing fixed, intangible and other long-term | 177,289,681.51 | 202,669,585.70 |
| assets | ||
| Cash paid for investment | 1,427,333,334.00 | 1,150,000,000.00 |
| Net increase of mortgaged loans | ||
| Net cash received from subsidiaries and other units obtained | ||
| Other cash paid concerning investing activities | 73,130,700.88 | 66,344,241.47 |
| Subtotal of cash outflow from investing activities | 1,677,753,716.39 | 1,419,013,827.17 |
| Net cash flows arising from investing activities | -874,325,022.58 | -934,567,645.82 |
| III. Cash flows arising from financing activities | ||
| Cash received from absorbing investment | 368,459,272.52 | |
| Including: Cash received from absorbing minority shareholders’ investment by subsidiaries | 368,459,272.52 | |
| Cash received from loans | 1,135,721,085.04 | 868,040,918.37 |
| Other cash received concerning financing activities | 250,002,913.48 | 11,404,482.95 |
| Subtotal of cash inflow from financing activities | 1,385,723,998.52 | 1,247,904,673.84 |
| Cash paid for settling debts | 753,250,888.06 | 695,000,000.00 |
| Cash paid for dividend and profit distributing or interest paying | 126,145,172.10 | 102,939,182.56 |
| Including: Dividend and profit of minority shareholder paid by subsidiaries | 16,677,010.63 | 25,417,858.64 |
| Other cash paid concerning financing activities | 107,503,081.30 | 869,994,470.14 |
| Subtotal of cash outflow from financing activities | 986,899,141.46 | 1,667,933,652.70 |
| Net cash flows arising from financing activities | 398,824,857.06 | -420,028,978.86 |
| IV. Influence on cash and cash equivalents due to fluctuation in exchange rate | 1,594,491.69 | 47,997,201.13 |
| V. Net increase of cash and cash equivalents | 1,932,361,362.02 | 532,626,963.29 |
| Add: Balance of cash and cash equivalents at the period-begin | 6,113,222,069.76 | 5,840,194,931.57 |
| VI. Balance of cash and cash equivalents at the period-end | 8,045,583,431.78 | 6,372,821,894.86 |
Legal Representative: Wu DinggangPerson in charge of accounting works: Pang HaitaoPerson in charge of accounting institute: Yang Jun（ii）The information of the adjusting items related to the financial statements at the beginning of theyear of first implementation due to the first implementation of new accounting standards from 2023Adjustment description
√Applicable□ Not applicable
Explanation of AdjustmentThe Company made the accounting policy change in accordance with the "Accounting Standard forBusiness Enterprises Interpretation No. 16" issued by the Ministry of Finance on November 30, 2022: "Thedeferred income tax related to assets and liabilities arising from a single transaction is not subject to theaccounting treatment of the initial recognition exemption", and chose to implement from January 1, 2023.
Based on the cumulative impact as firstly implemented according to the Interpretation, the retained earnings andother relevant financial statement items at the beginning of the year were adjusted for first implementation,which was as follows:
| Affected items | Consolidated statements | ||
| （Before adjustment) | Adjustment amount | （After adjustment) | |
| Deferred income tax asset | 156,630,537.43 | 4,935,157.87 | 161,565,695.30 |
| Deferred income tax liability | 12,750,747.30 | 4,758,755.78 | 17,509,503.08 |
| Surplus reserves | 441,201,471.98 | 17,219.50 | 441,218,691.48 |
| Retained profit | 909,082,037.66 | 167,328.13 | 909,249,365.79 |
| Minority shareholders’ equity | 370,748,395.26 | -8,145.54 | 370,740,249.72 |
（iii）Auditor’ reportIs the Third Quarterly Report be audited?
□ Yes √No
The Third Quarterly report is not audited.
The Board of Directors of Changhong Meiling Co., Ltd.
October 24,2023