CHANGHONG MEILING CO., LTD.
Semi-Annual Report 2022
August 2022
Section I. Important Notice, Contents and Interpretation
Board of Directors, Supervisory Committee, all directors, supervisors and senior executives of Changhong MeilingCo., 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, individualand/or joint, for the reality, accuracy and completion of the whole contents.Mr. Wu Dinggang, Chairman of the Company, Mr. Pang Haitao, person in charge of accounting work and Mr. YangJun, person in charge of accounting organ (accountant in charge) hereby confirm that the Financial Report of 2022Semi- Annual Report is authentic, accurate and complete.The Company did not have directors, supervisors and senior executives of the Company could not guarantee thereality, accuracy and completion of the whole contents or have objections.All the directors attended the board meeting to deliberating the Report by a combination of on-site andcommunication.Modified audit opinions notes
□ Applicable √ Not applicable
Risk warning of concerning the forward-looking statements with future planning involved in semi-annual report
√ Applicable □Not applicable
Concerning the forward-looking statements with future planning involved in the Report, they do not constitute asubstantial commitment for investors, investors and the person concerned should maintain adequate risk awareness,furthermore, differences between the plans, forecast and commitments should be comprehended. Investors areadvised to exercise caution of investment risks.
Investors are advised to read the full text of semi-annual report, and pay particular attention to the following riskfactors:
More details about the possible risks and countermeasures in the operation of the Company are described in thereport “X. Risks and countermeasures” of “Section III Management Discussion and Analysis”, investors areadvised to read the relevant content.Securities Times, China Securities Journal, Hong Kong Commercial Daily and Juchao Website(www.cninfo.com.cn) are the media for information disclosure for year of 2022 that appointed by the Company.All public information under the name of the Company disclosed on the above said media and website shallprevail, and investors are advised to exercise caution.Does the Company need to comply with disclosure requirements of the special industry: NoProfit distribution pre-plan or capitalizing of common reserves pre-plan deliberated by the Board in the semi-
annual period
□Applicable √Not applicable
The Company has no plans of cash distribution, bonus shares and capitalizing of common reserves either.Directors, supervisor and senior executives of the Company respectively signed Written Confirmation Opinionsfor 2022 Semi-Annual Report.Supervisory Committee of the Company formed Written Examination Opinions for 2022 Semi-Annual Report.
Contents
Section I. Important Notice, Contents and Interpretation ................................................................................... 1
Section II Company Profile and Main Financial Indexes ...... 6
Section III Management Discussion and Analysis ...... 10
Section IV Corporate Governance ...... 34
Section V Environmental and Social Responsibility ...... 36
Section VI Important Events ...... 40
Section VII Changes in Shares and Particular about Shareholders ...... 87
Section VIII Preferred Stock ...... 95
Section IX Corporate Bonds ...... 96
Section X Financial Report ...... 97
Documents available for Reference
I. Text of the Semi-Annual Report carrying the signature of the Chairman;
II. Financial statement carrying the signatures and seals of the Chairman, principal of the accounting works andperson in charge of accounting organ;
III. Original documents of the Company and manuscripts of public notices that disclosed in the website designatedby CSRC in the report period;
The aforesaid documents are all available at headquarter of the Company. The Company would provide them timelywhen CSRC and Shenzhen Stock Exchange require or the shareholders need consultation according to theregulations and Articles of Association.
Interpretation
| Items | Refers to | Contents |
| Company, The Company, Changhong Meiling or Meiling Electric | Refers to | CHANGHONG MEILING CO.,LTD. |
| Sichuan Changhong or controlling shareholder | Refers to | Sichuan Changhong Electric Co., Ltd. |
| Changhong Group | Refers to | Sichuan Changhong Electronics Holding Group Co., Ltd. |
| Hong Kong Changhong | Refers to | CHANGHONG (HK) TRADING LIMITED |
| Meiling Group | Refers to | Hefei Meiling Group Holdings Limited |
| Changhong Air-conditioner | Refers to | Sichuan Changhong Air-conditioner Co., Ltd. |
| Zhongke Meiling | Refers to | Zhongke Meiling Cryogenic Technology Co., Ltd. |
| Mianyang Meiling | Refers to | Mianyang Meiling Refrigeration Co., Ltd. |
| Jiangxi Meiling | Refers to | Jiangxi Meiling Electric Appliance Co., Ltd. |
| Ridian Technology | Refers to | Changhong Meiling Ridian Technology Co., Ltd. |
| Wulian Technology | Refers to | Hefei Meiling Wulian Technology Co., Ltd |
| Zhongshan Changhong | Refers to | Zhongshan Changhong Electric Co., Ltd. |
| Meiling Life Appliances | Refers to | Hefei Changhong Meiling Life Appliances Co., Ltd. |
| Changhong Huayi | Refers to | Changhong Huayi Compressor Co., Ltd. |
| Shine Wing | Refers to | Shine Wing Certified Public Accountants (LLP) |
| CSRC | Refers to | China Securities Regulatory Commission |
| Anhui Securities Bureau | Refers to | China Securities Regulatory Commission, Anhui Province Securities Regulatory Bureau |
| SSE | Refers to | Shenzhen Stock Exchange |
Section II Company Profile and Main Financial IndexesI. Company profile
| Short form of the stock | Changhong Meiling, Hongmeiling B | Stock code | 000521, 200521 |
| Short form of the Stock after changed (if applicable) | N/A | ||
| Stock exchange for listing | Shenzhen Stock Exchange | ||
| Name of the Company (in Chinese) | 长虹美菱股份有限公司 | ||
| Short form of the Company (in Chinese)(if applicable) | 长虹美菱 | ||
| Foreign name of the Company (if applicable) | CHANGHONG MEILING CO.,LTD. | ||
| Abbr. of English name of the Company (if applicable) | CHML | ||
| Legal representative | Wu Dinggang | ||
II. Person/Way to contact
| Secretary of the Board | Rep. of security affairs | |
| Name | Li Xia | Pan Haiyun |
| Contact add. | No. 2163, Lianhua Road, Economic and Technology Development Zone, Hefei | No. 2163, Lianhua Road, Economic and Technology Development Zone, Hefei |
| Tel. | 0551-62219021 | 0551-62219021 |
| Fax. | 0551-62219021 | 0551-62219021 |
| lixia@meiling.com | haiyun.pan@meiling.com |
III. Others(I) Way of contactWhether registrations address, offices address and codes as well as website and email of the Company changed inreporting period or not
□ Applicable √ Not applicable
Registrations address, offices address and codes as well as website and email of the Company has no change inreporting period, found more details in Annual Report 2021.(II) Information disclosure and preparation placeWhether information disclosure and preparation place changed in reporting period or not
□ Applicable √ Not applicable
The newspaper appointed for information disclosure, website for semi-annual report publish appointed by CSRCand preparation place for semi-annual report have no change in reporting period, found more details in Annual
Report 2021.(III) Other relevant informationWhether other relevant information has changed in reporting period or not
□Applicable √Not applicable
IV. Main accounting data and financial indexesWhether it has retroactive adjustment or re-statement on previous accounting data or not
□Yes √No
| Current period | Same period last year | Changes in the current reporting period compared with the same period of the previous year (+,-) | |
| Operating income (RMB) | 10,224,503,551.19 | 9,602,759,345.29 | 6.47% |
| Net profit attributable to shareholders of the listed company (RMB) | 60,375,199.25 | 37,157,511.54 | 62.48% |
| Net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses (RMB) | 4,107,468.91 | -63,552,415.01 | 106.46% |
| Net cash flow arising from operating activities (RMB) | 575,053,217.35 | -588,496,116.82 | 197.72% |
| Basic earnings per share (RMB/Share) | 0.0582 | 0.0356 | 63.48% |
| Diluted earnings per share (RMB/Share) | 0.0582 | 0.0356 | 63.48% |
| Weighted average ROE | 1.24% | 0.76% | Increase by 0.48 percentage points |
| End of current period | End of last year | Changes at the end of the reporting period compared with the end of the previous year (+,-) | |
| Total assets (RMB) | 16,517,739,871.56 | 15,190,469,756.33 | 8.74% |
| Net assets attributable to shareholder of listed company (RMB) | 4,845,537,338.97 | 4,837,334,400.21 | 0.17% |
V. Accounting data difference under domestic and foreign accounting standards
(I) Difference of the net profit and net assets disclosed in financial report, under both IAS (InternationalAccounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable √ Not applicable
The Company has no difference of the net profit and net assets disclosed in financial report, under both IAS(International Accounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles) in reportingperiod.
(II) Difference of the net profit and net assets disclosed in financial report, under both foreign accountingrules and Chinese GAAP (Generally Accepted Accounting Principles)
√ Applicable □ Not applicable
In RMB
| Net profit attributable to shareholders of listed company | Net assets attributable to shareholders of listed company | |||
| Current period | Previous period | Ending amount | Opening amount | |
| Chinese GAAP | 60,375,199.25 | 37,157,511.54 | 4,845,537,338.97 | 4,837,334,400.21 |
| Items and amount adjusted by foreign accounting rules | ||||
| Foreign accounting rules | 60,375,199.25 | 37,157,511.54 | 4,845,537,338.97 | 4,837,334,400.21 |
The Company had no difference of the net profit or net assets disclosed in financial report, under either foreignaccounting rules or Chinese GAAP (Generally Accepted Accounting Principles) in the period.
(III) 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 fromCSRC dated 12 September 2007, since the day issuing, cancel the previous “dual audit” requirement for companieswho offering domestically listed foreign shares (B-share enterprise) while engaging securities practice qualificationCPA for auditing. The Company did not compile financial report under foreign accounting rules since 2007, thefinancial report of the Company is complying on the “Accounting Standard for Business Enterprise” in China, andtherefore, there are no differences of accounting data under accounting rules in and out of China at period-end.
VI. Items and amounts of non-recurring profit (gains)/losses
√ Applicable □ Not applicable
In RMB
| Item | Amount | Note |
| Gains/losses from the disposal of non-current asset (including the write-off that accrued for impairment of assets) | 8,358,775.10 | Found more in “Income from assets 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) | 41,343,694.48 | Found more in “Other income” |
| Gains/losses of fair value changes arising from holding of the trading financial asset, trading financial liability and investment earnings obtained from disposing the trading financial asset, trading financial liability, and financial assets available for sale, except for the effective hedging business related to normal operation of the Company | 13,172,916.65 | Found more in “Income of fair value changes”, “Investment income” |
| Switch back of the impairment for receivables that has impairment test independently | 714,463.58 | Found more in “Account receivable’’ |
| Other non-operating income and expenses other than the above | 577,926.96 | Found more in “Non-operating income’’ and “Non-operating expenses’’ |
| Less: impact on income tax | 6,327,022.61 | |
| Impact on minority shareholders’ equity (post-tax) | 1,573,023.82 | |
| Total | 56,267,730.34 |
Details of other gains/losses items that meets the definition of non-recurring gains/losses:
□ 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)/loss inQ&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)/loss inQ&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public ---Extraordinary Profit/loss
Section III Management Discussion and Analysis
I. Main businesses of the company engaged in during the PeriodThe Company is one of China's major electric appliance manufacturers, possesses four major domesticmanufacturing bases in Hefei, Mianyang, Jingdezhen and Zhongshan, and two overseas manufacturing bases inIndonesia and Pakistan. Currently, we have completed the industry layout of white electricity basically, coveringthe full product line including refrigerator, washing machine, air conditioner, kitchen and bath, small householdappliances and others, at the same time, the Company enters the new industrial fields as bio-medical and with certainachievements made.For more than 40 years, the Company has always been adhering to the "independent innovation, created in China",and always focus on the home appliance industry with great persistence, elaborately building the corecompetitiveness of enterprises by technological innovation and product innovation. Relying on the cutting-edgeR&D team and advanced technology, Meiling continue to achieve breakthrough results in the variable frequency,intelligence, refreshment, thin-wall, odourless, energy-saving, forced air cooling, deep cooling and other fields. TheCompany has set up the first RoHS public testing center in Anhui Province, the national enterprise technology center,the national industrial design center, and the 5G industrial internet innovation application laboratory. In recent years,the Company has successively awarded several national honorary titles as the “Smart Refrigerator IntelligentManufacturing Pilot Demonstration Project”, the “National Green Factory”, the “National Industrial Design Center”and “National Leading Enterprises of Qualify in Home Appliance Industry” etc. At the same time, many productsof Meiling have repeatedly won a number of domestic awards, continuously demonstrating the capabilities andstrength of Meiling's intelligent manufacturing and Meiling brand intelligent innovation technology. In the “2022China Refrigerator Industry Summit”, Meiling won the 2022 China Refrigerator Industry Clean and SterilizationPioneer Brand Award, its product Meiling Very Clean Series BCD-550WP9BT won the "2022 China RefrigeratorIndustry Full Space Sterilization Best-Selling Product" Award, and Meiling Spectral Freshness Refrigerator BCD-413WP9BY won the "2022 Outstanding Channel Performance Product" Award; Changhong 3P Guest RestaurantShared Air Conditioner KFR-72LW/Q6C+R1 won the title of "The World's 3P Guest Restaurant Mechanical AirConditioner with the Longest Air Supply Distance"; Meiling kitchen appliances, small household appliances, anddrinking water products won the "National Quality Leading Brand in the Household Appliance Industry"; ZhongkeMeiling Cryogenic Technology Co., Ltd, a subsidiary of biomedical business, was recognized by the Ministry ofIndustry and Information Technology as the third batch of "little giant" enterprises with specialization, refinement,specialty and novelty.In recent years, driven by the industry transformation and upgrades and consumption upgrades, the Company alwaysadheres to the strategy of smart and variable frequency products, promoted the Company’s products to transformand upgrade to become intelligent and high-end and comprehensively enhanced the competitiveness of products inthe industry by grasping the opportunities of refreshment, thin-wall, odourless, air cooling and energy efficiencyupgrades and effectively resolving the pain points of customers. Under the guidance of the “intelligent” strategy, inrecent year, the Company has released and listed a number of CHiQ series of smart refrigerators, air-conditioning
and washing machine, “M-Fresh” refrigerators, “M-Fresh” comprehensive thin series products and “very clean”series of refrigerators, Meiling always leads the trend of the industry by solving the pain points of users effectively.In April 2022, Meiling launched the M Fresh "Mega Capacity" refrigerator, which not only meets the consumerdemand for embedding and small footprint, but also meets the user's demand for storage. In May 2022, the industry'sfirst smart refrigerator tea bar machine using the refrigerator foaming process to make the body and door for the teabar machine was launched, which solved the problem that the tea bar machine could not be refrigerated. In the samemonth, Meiling Biomedical launched a new generation of "Yunzhian·Automated Sample Library", an original -80 ℃separate storage unit, which has the advantages of high compatibility, multi-partition, phased, and multi-systemguarantee, and integrates IoT technology to provide safer and smarter automated sample storage solutions. In June2022, the MG100-14598DHCZ product of the Super Oxygen Clean· Brightening series was released. This productnot only continued the core function of ultra-thin and large drum diameter, but also pioneered the "drying tunnelwashing" function, which has the effects of cleaning, health and deodorization. The ultra-high standard technologyonce again demonstrates the hard core strength in the core technology field of washing machines. In July 2022,Meiling Very Clean 632WUPBT refrigerator, which adopts "MNC + long-term deodorization and sterilization"technology, mainly focuses on the core functions of disinfection, sterilization and deodorization. The inactivationratio for various bacteria and viruses reaches 99.99%, achieving a full range of health care, and creating a realhealthy life for users.Facing the future, the Company will implement the management policy of “one goal and three main lines” andfurther improve the layout of whole scene of smart home, accelerate the intelligentization of home appliances, forma dual-growth engine of “hardware + services”, drive the transformation and upgrading of the Company’sprofitability model, investigate the new value-added service models for home appliance enterprises, meet newcompetition pattern in the industry, and achieve its own sustainable and stable development under the guidance ofthe core values of “professionalism and shared development”. Meanwhile, based on the “Smart Home Eco-systemProject” and the existing products, the company will enhance the R&D, manufacturing, sales and cooperativecapabilities of integrated white goods so as to provide a complete set of smart scene system solutions for users.During the reporting period, main income of the Company coming from refrigerator (freezer), air conditioner,washing machine, kitchen & toilet products, small home appliances and biomedical etc., total amounting to 10.138billion yuan, a 99.16% of the operating income.II. Core Competitiveness Analysis
(1) Brand capacity
The Company is one of the famous home appliances manufacturers in China, owns several product lines such asrefrigerator, freezing box, air conditioner, washing machine, small household appliances and biomedical etc.“Meiling” brand is listed as one of the most valuable brands in China, we own the young brand "Athena" andgradually build the "M Fresh" product brand. In recent years, the company has been continuously improving thecore competitiveness of the brand through measures such as reshaping the brand image, continuously innovatingcore technologies and developing high-end intelligent products. In terms of continuous innovation of core
technologies, on the one hand, in order to comply with the development needs of the industry and the market, thecompany continuously promotes innovations in fresh-keeping, intelligence and frequency conversion technologiesto maintain its leading position in the industry. On the other hand, under the boost of consumption upgrade, in orderto meet the individualized, differentiated and diversified demands of consumers, the company continues toaccelerate product innovation and enhance the comprehensive competitiveness of the brand around products. In thedevelopment of high-end intelligent products, product innovation has been continuously promoted throughcontinuous technological innovation, and through the introduction of high-end intelligent products, it can timelymeet the market demand, and enrich and enhance the brand image.In terms of refrigerator products, the company has independently developed core technologies such as "zero shock"and "slight freeze" fresh-keeping technology, water molecule activation preservation technology, full thin GLSintegration technology, MCN + deodorization and fresh-keeping technology, etc., leading the refrigerator industryto return to the main field of fresh-keeping and fully enter the era of "thin" and "long-lasting deodorization". At thesame time, the company has successively released the "M Fresh" series of refrigerators, the "M Fresh" full thinseries of products, the "M Fresh" second-generation series of refrigerators, and the "Very Clean" series ofrefrigerators, which created "Meiling Fresh", "Meiling Clean", "Meiling Embedding" brand name cards, andestablished brand images. In terms of washing machine products, through the development of three blacktechnologies, i.e. inner barrel conical bulging technology, inclined barrel stabilization technology and cloud traycondensed technology, we have created a "thin", "large" and "smart" industry business card for washing machines,providing users with new embedded experience. In terms of air-conditioning products, the company adheres to theproduct concept of "good sleep + good air + comfort", focuses on quality, experience and health for product upgrades,strictly controls quality based on comfort and reliability indicators, and creates the "extremely quiet, extremelypower saving, extremely intelligent" brand experience of air conditioners, and carries out product series layoutaround three core functions of "fresh air ventilation, self-cleaning, and complete dust-free". In terms of kitchen,bathroom and small household appliances, the company focuses on building an influential brand of water ecologicalappliances and operation services, strengthens the lineup of drinking water products, and develops the integrationof drinking water series products with refrigeration and household fields to provide users with better products andservices. In terms of biomedical treatment, the company adheres to the development strategy "based on the relevantdiversification in the biomedical field", focuses on the three major business strategic layouts of life science, smartcold chain and family health, and continues to promote product innovation, research and development and qualityimprovement.Promoting the remodeling of brand ability through the continuous upgrading of products, Meiling will achieve arejuvenated, intelligent, international and professional brand image. Through gradual construction of the ideas ofWonderful Start Point, Wonderful Life Circle and Wonderful Ecology Circle, Meiling has become a people-orientedartist specializing in white appliances, a smarter scientific expert and a more reliable house keeper.
(2) Product capacity
For more than 40 years, the Company has been focusing on the refrigeration industry, and has developed a numberof different models of refrigerators, mainly including the "M fresh" first generation series of fresh-keeping
refrigerators carrying water molecule activation preservation technology, the "M fresh"second generation series offresh-keeping refrigerators with "zero shock" and "slight freeze" fresh-keeping technology, "Star" series mother andinfant refrigerators, "Very Clean" series fresh-keeping and cleaning refrigerators, the ultra-thin side-by-siderefrigerator BCD-529X, large capacity and equipped with ADF + negative ion antibacterial magic stone series (O2O)BCD-616B/532B and other 5 glass door refrigerators, M Fresh "Mega Capacity" BCD-681WQ3S refrigerator, -32degrees cryogenic lock fresh BCD-500L, French BCD-546WP9B, BCD-550WUP9BT series refrigerators, veryclean and sterilized BCD-632WUPBT series refrigerators, export vertical air-cooled freezers, SC-270WE single-door refrigeration vertical display freezer, CX-1000 chromatography freezer, CT-G185R high-speed freezinglaboratory centrifuge, etc. On the "Very Thin" front loading washing machine platform, Meiling has successivelyreleased series of products such as super-oxygen clean and 5G II. The aforementioned washing machines not onlycontinue the core functions of ultra-thin and large inner barrel, but also are smarter and healthier. Its automaticdelivery and voice technology are more intelligent and convenient, the pioneered "drying channel washing" functionhas the functions of cleaning, health, and deodorization. The ultra-high standard technology once againdemonstrates the hard core strength of washing machine products in the core technology field. Deeply dug into theindustry subdivision track, adopted the "far-to-near soft and comfortable wind" technology and released the sharedseries floor-standing air conditioners for living room and dining room, and opened up the industry's living-diningroom air-conditioning market segment; it was the first to release the "completely dust-free" series of wall-mountedair-conditioners, adopting fully enclosed and dust-proof design for the air inlet and outlet, which opened up a newtrack for the health industry. Launched the industry's smallest 5P floor-standing air conditioners, of which thefashionable style, high performance, and high cost performance have opened up a new choice for 5P floor-standingair conditioners. Kitchen, bathroom and small household appliances have carefully cultivated the industry fieldaccording to user needs, strengthened the integration of product functions, and launched the industry's first smartrefrigerator tea bar machine, breaking through the bottleneck of product refrigeration technology and leading thehigh-end and high-quality development of the industry. Biomedical launched a new generation of"Yunzhian·Automated Sample Library", an original -80 ℃ separate storage unit, which has the advantages of highcompatibility, multi-partition, phased, and multi-system guarantee, and integrates IoT technology to provide saferand smarter automated sample storage solutions.The Company owned advanced development and quality assurance systems, passed management systemcertification of ISO9001, ISO14001 and ISO45001. Product quality has been quality assurance and productperformance is reliable. At the same time, the company has authoritative certifications including “national-leveltechnology center”,”national-level industrial design center”, “national-level intellectual property demonstrationenterprise”, “national-level industrial product green design demonstration enterprises”, “ Anhui Green Energy-saving Refrigerator Engineering technology research center”, “Anhui energy-saving and fresh green refrigeratorengineering research center ”as strong guarantees. In terms of technical research, it is committed to applying basictechnology research and industrialization transfer, and has established a technical strategic plan with “intelligence,frequency conversion, simulation, fresh-keeping” as core technologies, and “refrigeration, new material and foam”as key technologies. Adhere to the product strategy of “thin, fresh, clear, embedded and intelligent”, aim at the users’pain point, making the refrigerators return to essence of use. Promoting the transformation and upgrading of
products to high-end by seizing the opportunities of “large volume ratio”, “fresh-keeping”, “odor clear”, “embed inhome”, “intelligent upgrade” and “green appliances”. In terms of product development, based on the technologicalresearch results and consumption upgrade requirements, updated the annual product planning and developmentoutline, increasingly upgraded the product structure, continued to increase the development of mid-to-high-endproducts with characteristic of thin-wall, air-cooling, large-volume, frequency conversion, intelligence, simulation,smart cleaning, odour clean, sterilization, dust removal, silent and developed competitive core products. At thestrategic level of the company, continued to adhere to the core idea of “intelligent strategy, productism”, andpromoted the company's product transformation, technological innovation, and industry leadership by advancingthe subsequent research and development, promotion and technical update of intelligent and frequency conversionproducts. Additionally, the Company will improve their home appliances product lines continuously, layout severalproduct business as AC, washing machines, kitchen and bathroom, small appliances and biomedical products, tobuild a comprehensive home appliance enterprise.
(3) Operation capacity
The Company continues to carrying out bench-marking activities to improve the operation and managementstandards and competitiveness of the Company. At the same time, the internal management capability has beencontinuously improved by continuing to carry out the improvement work in "human efficiency, money efficiencyand material efficiency". The company established a hierarchical sharing system with clear goals, quantitativeindicators, performance-oriented performance appraisal and incentives to activate internal productivity. Takingvalue chain management as the main line, continued to carry out value creation work, and enhanced the company'scompetitiveness. Meanwhile, continuously improved the internal control system and improved the ability to preventrisks.
(4) Marketing ability
The Company has established a relatively complete sales network and service system, which can provide users withhigh-quality services covering all categories of white goods. The domestic market is actively accelerated to realizethe marketing transformation from product line-oriented sales management to channel- and user-oriented businessservices, from single-category marketing to full-category marketing, quickly building an operation managementsystem with reasonable commercial inventory management as the core and a value management system core withterminal retail price; through determined bench marking match, achieved products leading and efficiencyimprovement and builds the capability for marketing system and development potential for long period of time. Inoverseas markets, the company increased the investments in overseas marketing agencies, research and developmentbases, production bases, etc., developed the market actively and cooperated with internationally renownedhousehold appliance brands and distributors, continued to optimize the customer structure and enhance the productstructure, accelerated the overseas branding, improve overseas brand awareness, in counter with the overseas marketsegments, tailored marketing strategy to promoting the expanding driven by marketing.III. Main Business Analysis
(1) Overview
Whether the disclosure is the same as the main businesses of the company engaged in during the Period
□Yes √No
1. Introduction
In the first half of 2022, the external environment of the market continued to deteriorate. The sporadic pandemicseriously affected the release of demand. The interruption of national logistics and transportation by the pandemicalso made the market worse.With the pandemic under control, the logistics industry has also recovered, the supplyside of the household appliance manufacturing industry has recovered, and the demand side has begun to show apositive trend. In the first half of this year, the retail sales of China's household appliance market reached 338.9billion yuan, a decline of 9.3 percent on a year-over-year basis, according to total data released by All View Cloud(AVC).In the first half of the year, revenue scale of the Company has achieved a y-o-y growth with profitability improvedand result in a virtuous development. Operating income as a growth of 6.47%, net profit rose 30.52%.
2. Progress of the company's development strategy and business plan during the reporting periodDuring the reporting period, according to the development strategy, the Company comprehensively implementedthe guidelines of “one goal and three main lines”, actively push forward the operation plans and carried out followingworks including:
1.One goal
(1) Refrigerator (cabinet)
In the domestic market, the company insists on creating the "fresh", "clean" and "embedded" featured productbusiness cards. With reasonable commercial inventory as the core, it promotes the digital transformation of its ownchannels, and strategically expands the pre-installation market and ODM business. The online C-end operationcapability has been steadily improved, profit and loss has been improved, the B-end expansion capabilities has beenimproved, and the online scale in the first half of the year increased by more than 20% on a year-on-year basis.In the overseas markets, faced with soaring shipping costs and severe shipping situation, the company gathers nearshipping routes, uses shipping resources to grab orders, and implements "production based on sales orders" toimprove efficiency, and assists business development by focusing on best-selling products, advantageous markets,and key customers. During the reporting period, the company's refrigerator (freezer) business achieved revenue ofabout 3.344 billion yuan, a year-on-year decrease of 12.53 %.
(2) Air-conditioning
In the domestic market, we have made popular floor-standing air conditioner and wall-mounted air conditioneronline, and expanded our unique value products offline. In terms of channel improvement, we implemented specialaction plans and achieved initial results. In addition, in the first half of the year, two waves of high temperature
weather in March and June in Sichuan and Chongqing significantly boosted retail sales, and the O2O channelboosted beyond expectations, with a significant year-on-year increase. The company strengthened cooperation withcore strategic customers, and realized a large increase in ODM business.In the overseas markets, we continues to carry out special actions to actively snatch orders, and gets repeat ordersby improving customer service, improving customer satisfaction and promoting fast delivery. Relying on theimprovement of product strength, we vigorously promotes variable frequency products, launches new products (Dplatform), promotes high-end products (EVA series, voice air conditioners, etc.), and promotes differentiatedproducts (such as generator air conditioners, current controllable energy-saving variable frequency air conditioners),constantly adjusts product structure, and competes for new customers. During the reporting period, the company'sair-conditioning business achieved revenue of about 5.351 billion yuan, a year-on-year increase of 35.16 %.
(3) Washing machine
The company's washing machine industry insists on differentiated and dislocated competition, and optimizes andadjusts the product structure. In the domestic market, the company gives full play to its "very thin" differentiatedcompetitive advantage, and closely focuses on the needs of users, and has launched the super-oxygen cleaning seriesof front-loading washing machines to further enhance the competitiveness of Meiling’s mid-to-high-end washingmachine products. In the overseas markets, the company expands washing machine business with industrial thinking,creates washing machine products in line with overseas markets, and promotes washing machine products with thehelp of refrigerator and freezer customers, and has achieved certain results in various markets. During the reportingperiod, the company's washing machine business achieved revenue of about 393 million yuan, a year-on-yearincrease of 21.89%.
(4) Kitchen & bathroom, small appliances
The company adheres to drinking water, gas hot water products as the core products. Based on traditional marketing,it actively embraces new retail, vigorously explores new channels, comprehensively sorts out the organizationalstructure of offline channels from the inside, and promotes the flat transformation of offline channels. It establishesonline shop groups on JD, Tmall, Pinduoduo and other platforms and quickly builds self-operated shop matrix toimprove the sales conversion rate and associated purchase rate. During the reporting period, the company's kitchenand bathroom, small household appliances business achieved revenue of about 727 million yuan, a year-on-yeargrowth 27.20%.
(5)Biomedical
Focusing on the three major business strategic layouts of life science, smart cold chain and family health, strengtheninnovative research and development of new technologies and new products, optimize research and developmentprocesses, stimulate innovation and research and development vitality, and form sustainable technologicalinnovation capabilities. Based on market demand, deepen the market segmentation and channel layout, and
constantly improve the level of market services; promote the standardization of production processes, enhance thelevel of value chain management, and improve production capacity efficiency and product quality; absorboutstanding talents, improve the construction of talent training system, and stimulate the vitality and creativity ofthe company. The Company's biomedical industry is mainly developed on the platform of its subsidiary ZhongkeMeiling. According to strategic planning and business development needs, Zhongke Meiling is promoting the publicoffering of shares to unspecified qualified investors and the listing on the Beijing Stock Exchange. Up to now, theBeijing Stock Exchange has officially accepted the application of Zhongke Meiling Cryogenic Technology Co., Ltdto issue shares to unspecified qualified investors and be listed on the Beijing Stock Exchange. During the reportingperiod, the biomedical business achieved revenue of approximately 213 million yuan, a year-on-year decrease of
18.21%.
2．Three main lines
(1)Efficiency priority
With reasonable commercial inventory as the core, the whole chain of "retail end - production end - logistics end"is driven to operate efficiently and collaboratively to maximize efficiency. It mainly improves delivery efficiencythrough model innovation, bottleneck breakthrough, and production and sales collaboration, and continues to reducethe number of models, optimizes the supply chain, replenishes in time, maintains reasonable inventory, digitallytransforms basic channels, and strengthens the assessment of the accuracy of sales forecasts. In the first half of theyear, commercial inventory turnover days of refrigerators decreased by over 20%, and air conditioners increased byover 40%.In terms of organizational efficiency, the company focuses on strengthening operation, and adjusts the R&D andproduction organization and functions of the refrigerator and freezer business headquarters in accordance with themanagement principle of "small platform, big business", thus, the organization has become more flat, and thedecision-making efficiency has been further improved.The company is accelerating its digital transformation. On the manufacturing end, continue to improve the MeilingIndustrial Internet platform, consolidate high-end manufacturing capabilities, and enhance large-scale flexiblecustomized production capabilities. On the market side, promote the "C+3 customer order system" model, based ononline collaboration and data parallel decision-making of four plans of sales, procurement, manufacturing, andlogistics, and quickly respond to market demand with punctual and efficient production and delivery capabilities.On the product side, use advanced R&D tools such as PLM and digital simulation to dig into the data value ofmarket, R&D, process, manufacturing, service and others to achieve deep understanding of user pain points andaccurate access to consumption trends. At the same time, improve operational efficiency through digital operationof the whole value chain.
(2)Product leadership
Through the close combination of technology empowerment and product application, the company promotes the in-
depth research and capability improvement of core technologies, key technologies and hard-core technologies, andthe competitiveness of products is continuously strengthened. In the first half of the year, we continued to promotethe “fresh, clean, and embedded” refrigerators and the “thin, large, and intelligent” washing machines, and releaseda variety of products, such as the “Very Clean” series refrigerators, super-oxygen clean, Tianpu II washing machines,etc., and made every effort to create differentiated and high-profit "high-quality products" with Meilingcharacteristics. Focus on unique value products to carry out annual promotion of air conditioners, and create threebusiness cards of "good comfort, good air, and good sleep" around "wind - wind feeling, air inlet and outlet, and airconditioning". Good Comfort mainly promotes the "living room and dining room shared floor-standing airconditioner" series, Good Air mainly promotes the "all dust-free" series, as well as the industry's smallest 5P floor-standing air conditioner, and Good Sleep mainly promotes the static oxygen wall-mounted air conditioner. Kitchen,bathroom and small home appliances refine their product layout around the core strategy of "water ecology", andlaunch the industry's first refrigerator tea bar machine and the condensing gas heating water heater with energyefficiency grade 1. Biomedical launches a new generation of "Yunzhian ·Automated Sample Library", an original -80 ℃ independent storage unit, to provide users with a safer and more intelligent automated sample storage solution.At the same time, in terms of improving product competitiveness, the company has launched a productcompetitiveness model, which evaluates product arrays and individual products in terms of appearance, costperformance, quality, experience and other dimensions, and continuously improves product competitiveness. Duringthe reporting period, the success rate of new refrigerator and freezer products in the market has increased, and theresearch on wide-speed full-frequency conversion technology and the application of air-cooled refrigerators havewon the Science and Technology Improvement Award of China National Light Industry Council, which not onlymarks that Meiling's technological innovation strength has been widely recognized by the industry and society, andalso highlights Meiling's continuous satisfaction and innovation strength for user needs.
(3) Benchmarking
Comprehensive benchmarking strengthens internal efficiency improvement. The company has been focusing onpromoting product cost benchmarking, share increase, average price increase and other work, and has achievedcertain results, i.e. reduced cost through bidding and negotiation, introduction of new suppliers, updated applicationof price models, new foaming process, new materials, design optimization and other measures. Benefiting from thesuccessful creation of "Jingxiaozhai" air conditioners and relying on C-end refined operational breakthrough, air-conditioning share at JD.com reached 1.5%, an increase of 0.8 percent on a year-on-year basis. Relying on productadvantages, it strengthened terminal retail-driven delivery of of cargo from warehouses. According to the monitoringdata of AVC, the offline share of refrigerators increased by 0.22%, and the offline share of freezers increased by
2.28%, and the offline share of washing machines increased by 0.44%.
(2)Y-o-y changes in the key financial data
In RMB
| Current Period | Same period last | Y-o-y | Causes |
| year | changes (+,-) | |||
| Operation income | 10,224,503,551.19 | 9,602,759,345.29 | 6.47% | No major changes |
| Operation cost | 9,061,080,531.06 | 8,177,231,196.17 | 10.81% | No major changes |
| Sales expense | 666,066,309.98 | 984,805,928.94 | -32.37% | According to the implementation of guidelines Q&A in the Period, relevant expenses as transportation costs adjusted to item of “Operation cost” |
| Administrative expense | 164,132,141.97 | 152,957,426.98 | 7.31% | No major changes |
| Financial expense | -62,786,327.96 | -5,695,990.10 | -1002.29% | Mainly due to the exchange gains in the Period and there is an exchange loss in the same period of the previous year |
| Income tax expenses | -10,115,573.46 | 37,086,971.38 | -127.28% | Mainly due to the decline of taxable income in the Period |
| R&D investment | 272,521,887.72 | 217,199,272.52 | 25.47% | Mainly due to the increase of investment in R&D in the Period |
| Net cash flow from operation activity | 575,053,217.35 | -588,496,116.82 | 197.72% | Mainly due to the increase of cash from commodity sales, and providing labor service increase from a year earlier |
| Net cash flow from investment activity | -844,422,733.68 | -699,480,638.02 | -20.72% | Mainly due to the restricted time deposits in the Period |
| Net cash flow from financing activity | -352,220,645.93 | -356,001,274.24 | 1.06% | No major changes |
| Net increased amount of cash and cash equivalent | -602,548,686.03 | -1,657,978,314.35 | 63.66% | Mainly because the net cash flow from operation activity increased from a year earlier |
| Investment income | 13,816,261.75 | 52,533,705.90 | -73.70% | Mainly because forward foreign exchange contract delivery gains decreased from a year earlier |
| Credit impairment loss | -50,466,619.13 | -15,121,003.89 | 233.75% | Mainly because impairment loss on account receivable increased from a year earlier |
| Assets impairment loss | -29,791,822.84 | -43,310,366.42 | -31.21% | Mainly because the provision for decline in value of inventories declined from a year earlier |
(3)Major changes on profit composition or profit resources in reporting period
□ Applicable √ Not applicable
No major changes on profit composition or profit resources occurred in reporting period
(4) Constitute of operation revenue/income
In RMB
| Current Period | Same period last year | Y-o-y changes (+,-) | |||
| Amount | Ratio in operation revenue | Amount | Ratio in operation revenue | ||
| Total operation revenue | 10,224,503,551.19 | 100% | 9,602,759,345.29 | 100% | 6.47% |
| According to industries | |||||
| Manufacture of household appliances | 10,138,489,064.28 | 99.16% | 9,076,019,575.56 | 94.51% | 11.71% |
| Other business | 86,014,486.91 | 0.84% | 526,739,769.73 | 5.49% | -83.67% |
| According to products | |||||
| Refrigerator, freezer | 3,557,279,193.80 | 34.79% | 4,083,961,202.33 | 42.53% | -12.90% |
| Air-conditioning | 5,350,650,174.76 | 52.33% | 3,958,753,350.50 | 41.23% | 35.16% |
| Washing machine | 393,315,713.02 | 3.85% | 322,671,076.35 | 3.36% | 21.89% |
| Small appliance and kitchen & toilet | 727,498,495.75 | 7.12% | 571,948,185.39 | 5.96% | 27.20% |
| Other products | 109,745,486.95 | 1.07% | 138,685,760.99 | 1.44% | -20.87% |
| Other business | 86,014,486.91 | 0.84% | 526,739,769.73 | 5.48% | -83.67% |
| According to region | |||||
| Domestic | 7,556,599,775.06 | 73.91% | 6,912,387,260.07 | 71.98% | 9.32% |
| Foreign | 2,667,903,776.13 | 26.09% | 2,690,372,085.22 | 28.02% | -0.84% |
(5)The industries, products or regions that accounting for over 10% of the Company’s operating revenue oroperating profit
√Applicable □ Not applicable
In RMB
| Operating revenue | Operating cost | Gross profit ratio | Increase/decrease of operating revenue y-o-y | Increase/decrease of operating cost y-o-y | Increase/decrease of gross profit ratio y-o-y | |
| According to industries | ||||||
| Manufacture of household appliances | 10,138,489,064.28 | 9,027,583,283.96 | 10.96% | 11.71% | 17.09% | -4.09% |
| According to products | ||||||
| Refrigerator, freezer | 3,557,279,193.80 | 3,052,742,990.21 | 14.18% | -12.90% | -8.43% | -4.19% |
| Air-conditioning | 5,350,650,174.76 | 4,907,155,572.46 | 8.29% | 35.16% | 38.60% | -2.28% |
| Small appliance and kitchen & toilet | 727,498,495.75 | 642,738,038.67 | 11.65% | 27.20% | 35.55% | -5.44% |
| According to region | ||||||
| Domestic | 7,475,522,523.09 | 6,574,576,772.52 | 12.05% | 16.94% | 26.12% | -6.40% |
| Foreign | 2,662,966,541.19 | 2,453,006,511.44 | 7.88% | -0.77% | -1.76% | 0.92% |
Under circumstances of adjustment in reporting period for statistic scope of main business data, adjusted mainbusiness based on latest one year’s scope of period-end
□ Applicable √ Not applicable
(6) Reasons for y-o-y relevant data with over 30% changes
□ Applicable √ Not applicable
Products of air-conditioning has a y-o-y growth in operation revenue and operation costs, mainly resulted by thefull implementation of the business policy as “one goal and three main lines” and positive demand in China andinternational market.IV. Analysis of the non-main business
√ Applicable □Not applicable
In RMB
| Amount | Ratio in total profit | Note | Whether be sustainable (Y/N) | |
| Investment income | 13,816,261.75 | 22.08% | Mainly due to the income of long-term equity investment and forward foreign exchange contract delivery proceeds in the Period | N |
| Gains/losses from change of fair value | 3,562,737.04 | 5.69% | Mainly due to the income on change in fair value of the forward foreign exchange contract in the Period | N |
| Asset impairment | -29,791,822.84 | -47.61% | Mainly due to the provision for losses on decline in value of inventory in the Period | N |
| Non-operating income | 2,910,887.79 | 4.65% | Mainly due to the income from fines received | N |
| Non-operating expense | 2,332,960.83 | 3.73% | Mainly due to the loss on retirement of non-current assets in the Period | N |
| Other income | 48,325,391.81 | 77.22% | Mainly due to the government subsidies received in the Period | N |
| Credit impairment loss | -50,466,619.13 | -80.64% | Mainly due to the provision for credit impairment loss on account receivable in the Period | N |
V. Analysis of assets and liability
(1) Major changes of assets composition
In RMB
| End of current period | Year-end of last year | Ratio changes | Notes of major changes | |||
| Amount | Ratio in total assets | Amount | Ratio in total assets | |||
| Monetary fund | 6,183,005,095.11 | 37.43% | 5,938,823,396.21 | 39.10% | -1.67% | The percentage of total assets declined due to the increase in total assets |
| Account receivable | 2,270,853,232.12 | 13.75% | 1,440,874,691.28 | 9.49% | 4.26% | Mainly due to the increase in operation revenue |
| Contractual assets | 2,313,522.40 | 0.01% | 0.01% | No major changes | ||
| Inventory | 1,607,718,382.71 | 9.73% | 1,356,357,419.80 | 8.93% | 0.80% | Mainly due to the increase |
| in production in the Period | ||||||
| Investment real estate | 52,191,185.68 | 0.32% | 53,149,934.45 | 0.35% | -0.03% | No major changes |
| Long-term equity investment | 88,915,648.08 | 0.54% | 86,631,660.53 | 0.57% | -0.03% | No major changes |
| Fix assets | 2,266,504,611.74 | 13.72% | 2,303,122,699.92 | 15.16% | -1.44% | Mainly due to the decrease in assets investment in the Period |
| Construction in progress | 103,923,104.08 | 0.63% | 98,469,862.45 | 0.65% | -0.02% | No major changes |
| Right-of-use assets | 40,286,720.53 | 0.24% | 45,367,918.31 | 0.30% | -0.06% | No major changes |
| Short-term loans | 1,087,291,446.15 | 6.58% | 622,874,652.77 | 4.10% | 2.48% | Mainly due to the new short-term borrowings in the Period |
| Contractual liability | 351,317,980.38 | 2.13% | 515,004,115.23 | 3.39% | -1.26% | Mainly due to the decrease in accounts received in advance during the Period |
| Long-term loans | 158,000,000.00 | 0.96% | 168,000,000.00 | 1.11% | -0.15% | No major changes |
| Lease liability | 30,061,422.30 | 0.18% | 33,225,912.15 | 0.22% | -0.04% | No major changes |
(2) Main overseas assets
√ Applicable □ Not applicable
| Content of assets | Reason for the formation | Asset size | Location | Operation mode | Control measure to ensure the security of assets | Income (RMB) | Foreign assets accounted for net assets of the Company | Whether exist significant impairment risk (Y/N) |
| 60% equity of Changhong Ruba Trading Company | Investment establishment | US$ 7.803 million | Pakistan | Sales | Details of risks control measures have been disclosed by the Company by way of announcement on appointed media (No. 2011-028, No. 2011-032, No. 2014-023, No. 2014-026, No. 2016-027, No. 2016-032, No. 2017-053 and No. 2017-059) on 28 May 2011, 19 April 2014, 25 March 2016 and 10 August 2017 | -741,419.00 | -0.04% | N |
| 40% equity of Changhong Ruba Electric Company(Private)Lt d. | Investment establishment | US$ 6.9761 million | Pakistan | Manufacture | Details of risks control measures have been disclosed by the Company by way of announcement on appointed media (No. 2011-028, No. 2011-032, No. 2014-023, No. 2014-026, No. 2017-053 and No. 2017-059) on 28 May 2011, 19 April 2014 and 10 August 2017 | 0.00 | -0.22% | N |
| 100% equity of CHANGHONG MEILING ELECTRIC INDONESIA. PT | Investment establishment | US$ 6 million | KELAPA GADING, JKT, Indonesia | Sales | Details of risks control measures have been disclosed by the Company by way of announcement on appointed media (No. 2016-027 and No. 2016-033) on 25 March 2016 | -966,902.47 | 0.35% | N |
| 100% equity of CH-Meiling International (Philippines) Inc. | Investment establishment | US$ 1 million | Philippines | Sales | Details of risks control measures have been disclosed by the Company by way of announcement on appointed media (No. 2019-083) on 7 December 2019. | -844,501.46 | 0.04% | N |
| Other notes | N/A | |||||||
(3) Assets and liability measured by fair value
√Applicable □ Not applicable
In RMB
| Items | Amount at the beginning period | Changes of fair value gains/losses in this period | Accumulative changes of fair value reckoned into equity | Devaluation of withdrawing in the period | Amount of purchase in the period | Sales in the period | Other changes | Amount at end of the period |
| Financial assets | ||||||||
| 1.Trading financial assets (derivative financial assets excluded) | 17,997,086.19 | 29,478,307.89 | 380,000,000.00 | 220,000,000.00 | 709,401.15 | 208,184,795.23 | ||
| 2.Receivable financing | 1,808,109,301.56 | -428,009,007.47 | 1,380,100,294.09 | |||||
| 3.Other non- | 581,980,440.70 | 5,779,799.20 | 576,200,641.50 | |||||
| current financial assets | ||||||||
| Subtotal of financial assets | 2,408,086,828.45 | 29,478,307.89 | 380,000,000.00 | 225,779,799.20 | -427,299,606.32 | 2,164,485,730.82 | ||
| Above total | 2,408,086,828.45 | 29,478,307.89 | 380,000,000.00 | 225,779,799.20 | -427,299,606.32 | 2,164,485,730.82 | ||
| Financial liabilities | 12,304,272.41 | 26,624,972.00 | 38,929,244.41 |
Other changes:
Other change of trading financial assets mainly due to the provision of income from financial products; other change of receivablefinancing due to the decrease in note receivable with the objective of both collecting contractual cash flow (collections) and selling(endorsement or discounting)
Whether there have major changes on measurement attributes for main assets of the Company in report period ornot
□Yes √ No
(4) Assets right restricted ended as reporting period
Ended as the reporting period, the Company has no major assets been closed down, detain, freeze or pledge andguarantee. As for other assets have restriction on rights found more in relevant content of “63. Assets with restrictedownership or use rights” in “VI. Note of consolidate financial statement” carried under Section X. Financial ReportVI. Investment analysis
(1) Overall situation
□Applicable √ Not applicable
(2) The major equity investment obtained during the reporting period
□Applicable √ Not applicable
(3)The material non-equity investment during the reporting period
□Applicable √ Not applicable
(4)Financial assets investment
1. Securities investment
□ Applicable √ Not applicable
The Company had no securities investment in the reporting period.
2. Derivative investment
√ Applicable □ Not applicable
In 10 thousand yuan
| Operator | Related relationship | Whether related trade or not(Y/N) | Type | Initial investment | Start date | End date | Investment amount at period-begin | Amount purchased in the reporting period | Amount sales in the reporting period | Amount of reserve for devaluation of withdrawing (if applicable) | Investment amount at period-end | Ratio of investment amount at period-end in net assets of the Company at period-end | Actual gains/losses in period |
| Financial institution | N/A | N | Forward foreign exchange contract | 299,655.67 | 2021-5-26 | 2023-3-30 | 156,034.41 | 282,480.19 | 239,774.22 | - | 200,001.57 | 41.28% | -1,261.19 |
| Total | 299,655.67 | -- | -- | 156,034.41 | 282,480.19 | 239,774.22 | - | 200,001.57 | 41.28% | -1,261.19 | |||
| Capital resource | Own fund | ||||||||||||
| Lawsuit involved (if applicable) | Not applicable | ||||||||||||
| Disclosure date for approval from the Board for investment of derivatives (if applicable) | 2022-3-31 | ||||||||||||
| Disclosure date for approval from board of shareholders for investment of derivatives (if applicable) | 2022-4-29 | ||||||||||||
| Risk analysis and controlling measures for derivatives holdings in the Period (including | Risk analysis: | ||||||||||||
| but not limited to market risk, liquidity risk, credit risks, operation risk and law risks etc.) | 1. Market risk: domestic and international economic situation changes may lead to exchange rate fluctuations, forward foreign exchange transactions are under certain market risk. Forward foreign exchange business is aiming to reducing impact on corporate profits by foreign exchange settlement and sale prices, exchange rate fluctuations. The Company will follow up the exchange fluctuation, on the basis of target rate determined from the business, relying on the research of the foreign currency exchange rates, combined with prediction of consignments, and burdening ability to price variations due to exchange rate fluctuations, then determine the plan of forward foreign exchange contracts, and make dynamic management to the business, to ensure reasonable profit level. 2. Liquidity risk: all foreign exchange transactions are based on a reasonable estimate of the future import and export business, to meet the requirements of the trade authenticity. In addition, forward foreign exchange transactions are processed with bank credit, will not affect liquidity of company funds. 3. Bank default risk: if cooperative banks collapse within the contract time, the Company will not be able to transact the original foreign exchange contracts with contract price, which leads the risk of income uncertainty. So the Company chose five state-owned banks, the Chinese-funded banks in shareholding enterprise as Everbright Bank, Industrial Bank and the foreign-funded banks as UOB, OCBC, BEA etc. to conduct the trading of foreign exchange capital. These banks share a solid strength and management whose failure and possible losses 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 market price or fair value in the Period, as for analysis of the fair value of derivatives, disclosed specific applied methods and correlation assumption and parameter setting | The Company determines fair value in accordance with the Chapter VII “Determination of Fair Value” carried in the Accounting Standards for Business Enterprises No.22 - Recognition and Measurement of Financial Instruments. Fair-value is basically obtained according to prices offered by bank and other pricing services. While fair-value of derivatives is mainly obtained according to the balance between prices given by outstanding contracts and forward prices given by contracts signed during the reporting period with bank. The differences are identified as trading financial assets and liabilities. During the reporting period, forward foreign exchange contracts and losses of the Company is -12.6119 million yuan. |
| Specific principle of the accounting policy and calculation for derivatives in the Period compared with last period in aspect of major changes | Not applicable |
| Special opinion on derivative investment and risk control by independent directors | Upon inspection, the Company believes that: during the reporting period, the Company carried out its foreign exchange forward deals in strict compliance with the Shenzhen Stock Exchange Self-Regulatory Guidelines No.1- Standardized Operation of the Listed Companies on main Board , the Articles of Association, Management Measures on Company Authorization, Management System in relating to Foreign Exchange Forward Deals, and these deals were conducted within the authorization scope under general meeting and board meeting. The Company conducts no foreign exchange transactions on the purpose of getting profit only, all of the forward foreign exchange transactions are operates closely related to the routine operation requirement of the Company and based on normal operating and production, which is relying on specific business operations with purpose of avoiding the preventing the risks in exchange rate. The forward foreign exchange transactions of the Company 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 relevantrules and regulations and relevant business was conducted under corresponding decision-making procedures. Interests of the Company and entire shareholders, especiallyminority shareholders, were not prejudiced.
3.Application of raised proceeds
√ Applicable □ Not applicable
(1) Overall application of raised proceeds
√ Applicable □ Not applicable
In 10 thousand yuan
| Raising year | Way | Total raised capitals | Total raised capital used in Period | Total accumulative raised capitals used | Total raised capital has purpose of uses changed in Period | Cumulative raised capitals has purpose of uses changed in total | Ratio of cumulative raised capitals has purpose of uses changed | Total accumulative raised capitals unused | Usage of the retained raised capitals and what is expected to invested with those capitals | Raised capitals idle for more than two years |
| 2016 | Non-public offering of A-share | 154,073.272276 | 970.54351 | 117,946.07 | 0 | 42,584.305127 | 27.64% | 935.01821 | After approval of the “ proposal on closing of the remaining fund raising investment and replenishment of the working capital with surplus fund raised permanently” at the 16th session of 10th BOD, the 13th session of 10th BOS and AGM of 2021 held dated March 29, 2022 and April 28, 2022, its was agreed that the Company will close the project of “intelligent R&D management platform construction” under the “intelligent manufacturing construction project” and “intelligent R&D project” . after the project closed, the investment projects with the funds raise by 2016 non-public offering of shares will all be completed.The above-mentioned fund raising project still have some | -- |
| remaining contractual payments and financial management income of 9,350,182.1 yuan. The Company will pay the remaining contract payments as planned and use the surplus proceeds to replenish the working capital permanently for its daily operations and business development. | ||||||||||
| Total | -- | 154,073.272276 | 970.54351 | 117,946.07 | 0 | 42,584.305127 | 27.64% | 935.01821 | -- | -- |
| Explanation on General usage of raised capital | ||||||||||
| In 2016, the Company successfully offering 280,858,676 shares (A-stock) to 7 qualified investors, including Sichuan Changhong Electric Co., Ltd. (hereinafter referred as to Sichuan Changhong), with price of 5.59 yuan/Share and face value of 1.00 yuan. The total proceeds raised from the issue amounted to 1,569,999,998.84 yuan, net amount raised amounted to 1,540,732,722.76 yuan after deducted the offering expenses (tax included) 29,267,276.08 yuan. As of June 30, 2022, the Company accumulative used the fund raised amounted as 1179460700 yuan, total balance of special account for fund raised was 9350182.1 yuan (including 369,142.04 yuan accumulated interest income and maturity earnings of 1,735,039.45 yuan from bank financial products) | ||||||||||
(2) Situation of committed project of raised proceed
□Applicable √ Not applicable
(3) Change of the raised funds
□Applicable √ Not applicable
There is no change of raised funds during the reporting period.
VII. Sales of major assets and equity
(1) Sales of major assets
□Applicable √ Not applicable
No major assets are sold in the period(ii) Sales of major equity
□Applicable √ Not applicable
VIII. Analysis of main holding company and stock-jointly companies
√ Applicable □Not applicable
(1) Particular about main subsidiaries and stock-jointly companies net profit over 10%
In RMB
| Company name | Type | Main business | Register capital | Total assets | Net assets | Operating revenue | Operating profit | Net profit |
| Zhongke Meiling Cryogenic Technology Co., Ltd. | Subsidiary | Research and development, manufacturing and sales of ultra-low temperature freezer | 72,548,200 | 460,367,118.01 | 225,013,744.69 | 235,704,905.75 | 37,635,712.20 | 34,977,067.97 |
| Jiangxi Meiling Electric Appliance Co., Ltd. | Subsidiary | Manufacturing of refrigeration and freezer | 50,000,000 | 329,823,180.80 | 139,812,393.11 | 316,893,749.46 | 7,371,271.74 | 7,375,671.74 |
| Mianyang Meiling Refrigeration Co., Ltd. | Subsidiary | Manufacturing of refrigeration and freezer | 100,000,000 | 173,913,164.56 | 120,480,549.80 | 174,755,637.60 | 799,630.57 | 91,970.82 |
| Zhongshan Changhong Electric Co., Ltd. | Subsidiary | R&D, manufacturing and foreign sales of air-conditioning | 334,000,000 | 1,794,997,540.68 | 126,106,127.73 | 1,778,468,757.66 | 44,914,005.28 | 44,602,177.68 |
| Hefei Meiling Group Holdings Limited | Subsidiary | Sales of white goods | 80,000,000 | 1,719,256,879.22 | -356,638,304.23 | 2,680,436,900.73 | -124,970,892.33 | -127,111,190.44 |
| Changhong Meiling Ridian Technology Co., Ltd. | Subsidiary | R&D, manufacturing and sales of kitchen and toilet products, small home appliances and water purifier | 83,000,000 | 286,455,739.24 | 138,687,564.56 | 121,903,975.39 | 2,398,112.05 | 1,833,690.30 |
| Hefei Changhong Meiling Life Appliances Co., Ltd. | Subsidiary | R&D and sales of household appliances, kitchen appliances and small home appliances | 50,000,000 | 484,728,701.85 | 89,120,532.45 | 618,374,856.05 | 13,640,426.72 | 8,755,357.31 |
(2) Subsidiary obtained and disposed in the period
√ Applicable □ Not applicable
| Company name | The method of obtaining and disposing subsidiaries during the report period | The influence to the whole production and performance |
| Jinan Xiangyou Electric Appliances Marketing Co., Ltd | Cancellation | Minor effect on the overall production and operation and performance of the company |
| Zhengzhou Meiling Electric Appliances Marketing Co., Ltd | Mergers & acquisition | Minor effect on the overall production and operation and performance of the company |
(3) Description of the holding company and stock-jointly companies
During the reporting period, subsidiary Sichuan Changhong Air-conditioner Co., Ltd. and Zhongshan ChanghongElectric Co., Ltd has larger increase in net profit from a year earlier, mainly due to the big increase in operationrevenue.
IX. Structured entity controlled by the Company
□Applicable √ Not applicable
X. Risks and countermeasures
(1) risks and countermeasures
In the second half of 2022, the domestic home appliance market demand will be under pressure, and exports will beaffected by factors such as transportation costs and the market. The company will face business risks such as severeindustry situation, intensified competition, and repeated COVID-19 pandemic at home and abroad.
1.Grim industry situation
Affected by the pandemic and pandemic prevention policies, consumption, especially offline contact serviceconsumption, has been recovering slowly, and the consumption intention is still lower than the level before thepandemic. The repeated pandemic has a negative impact on the overall consumption environment and consumerconfidence, and consumption, real estate, and employment have weakened. Reflected in the home appliance market,the market uncertainty has intensified, and some enterprises in the same industry have begun to contract strategically.
2. Impact of cross-border Internet industry and challenges of new business modelWith the advent of the Internet era and the era of artificial intelligence, Internet enterprises are constantly pouringinto the smart home field. Diversified and digital scene marketing will accelerate the transformation of onlinechannels. which not only intensifies the competition in the industry, but also aggravates the sinking of chains andthe difficulties of KA channels. Traditional home appliance enterprises are facing severe challenges.
3. Risk of price fluctuations in international transportation
Affected by the international shipping situation, ocean freight rates are still at a high level, and there is nofundamental improvement, which will have an impact on export business
4. The impact of trade frictions and geopolitics
The company pays close attention to the impact of uncertain factors such as international trade frictions andgeopolitics on the company's global business.In response to the above risks, combined with the industry situation in the second half of the year and the shortagein the first half of the year, the company will seize the opportunities and turn the crisis into an opportunity in thesecond half of 2022,, and implement the business plan from the following part (II).
(2)Operation plan for second half of the year
Under strategic planning, the company will continue to take “one goal and three main lines” as the guiding ideology,main works during the second half of the year as follow:
1. Refrigerator and freezer industry
In the domestic market, we will promote customer focus, provide consumers with unique value products, promotehigh-quality products and create popular products, and improve channel efficiency by reducing inventory, speedingup turnover, and exiting from inefficient stores, carry out transformation of basic channels through unifiedwarehousing and distribution, digital platform, C+3, and operator models, develop trend channels through dedicatedand customized product resources, and expand incremental channels through the establishment of professionalteams and planning dedicated products. At the same time, a special promotion group for efficiency improvementwill be established to continuously improve the capital efficiency, channel efficiency, product efficiency andmanagement efficiency to strengthen its own capabilities.In overseas markets, we will continue to focus on best-selling products, advantageous markets, and key customers.Focus on products with large loading quantity and high value per container; focus on the markets with shippingresources and low freight near the ocean routes; focus on key customers and explore market opportunities. Improveefficiency internally while looking for optimized logistics solutions. Increase investment in brand business teamsand products, and continue to promote the construction of overseas independent brands.
2.Air-conditioning industry
In the domestic market, we will focus on the offline core areas, and the controllable online value chain. We willconsolidate and enhance existing core customers and incrementally expand TOP and ODM customers mainlythrough the special plans of "granary area construction, innovation area model, Qiao Tou Bao plan, and Jing Gengaction"; improve retail promotion capabilities, and expand unique value products.In overseas markets, we will continue to practice the concept of "profitable scale growth and profit growth withcash flow", adhere to brand priority, improve product strength, expand customer channels, and at the same timefocus on efficiency improvement, reduce costs, improve quality, and improve service capabilities.
3.Washing machine industry
In the second half of the year, washing machine industry will adhere to the "good quality" + "hot sale" product
strategy, and build the "thin", "large", "smart" industry business card. For “good quality” products, enrich theproduct lines mainly through the layout in color screen tumble washing machine and high-box wave washingmachine, and improve product competitiveness from the appearance, cost performance, experience, and quality. For“hot sale” products, deploying the downstream channels and product integration channel in way of high priceperformance, and expand the scale of washing machines. At the same time, relying on the self-produced washingmachine to develop overseas business and ODM/OEM customers, and achieve rapid breakthroughs in Meilingwashing machine scale after complete the layout of washing and care products and accessories.
4. Kitchen, bathroom and small household appliances industry
In the second half of the year, the kitchen, bathroom and small household appliances industry shall adhere to thepolicy of "seeking quality in progress, transformation and upgrading". In terms of products, we will focus ondrinking water and gas heating products, promote the core products, core technologies and popular products,improve product competitiveness and operation quality, and quickly fill the space left by the peer when exiting themarket. In terms of marketing channels, we will continue to develop new business situations such as online and livebroadcast, at the same time, continue to expand self-operated business, explore and integrate high-quality marketresources, and strengthen self-operated capabilities.
5. Bio-pharmaceutical
We will implement the development strategy of "related diversification based on bio-medical field" determinedly,and keep up steady to push the innovation and research in aspect of new technology and new products, enrich theproduct lines and higher the quality by focusing on the strategy deployment for three business, including life science,smart cold-chain and family heath care. The life science businesses continue to strengthen the channel systemconstruction of the domestic market, actively deploy overseas markets, and strengthen online and offline markettraining and promotion. Relying on the life science channel system, the smart cold chain businesses steadily extendto professional logistics, pharmaceuticals, chemicals and other fields. Family health businesses actively promotethe launch of new products, build channel system construction, and promote the growth of the company's scale.
Section IV Corporate GovernanceI. AGM(Annual General Meeting) and extraordinary general meeting
(1)AGM held in the period
| Meeting | Type | Participation ratio for investors | Meeting date | Disclosure date | Resolution |
| First Extraordinary General Meeting of 2022 | Extraordinary General Meeting | 6.0286% | 2022-1-5 | 2022-1-6 | The General Meeting has approved one proposals-”Agreement of the External Guarantee Provided by Sichuan Zhiyijia Network Technology Co., Ltd ”, found more in the “Resolution of First Extraordinary General Meeting of 2022 ” released on Juchao Website www.cninfo.com.cn |
| 2021 AGM | Annual General Meeting | 31.9056% | 2022-4-28 | 2022-4-29 | The General Meeting have approved 18 proposals in total, including “Report on Works of BOD for year of 2021”, “Report on Works of BOS for year of 2021”, “Annual Report of 2021 and Its Summary”, “Financial Statement Report for year of 2021”, “ Plans of Profit Distribution for year of 2021”, “Renewal of the Audit Institution on Financial Report and Internal Control for year of 2022 and Payment of Remuneration” , “Change of the Accounting Policy” and the rest, found more in the “Resolution of 2021 Annual General Meeting” (No.: 2022-033) released on Juchao Website www.cninfo.com.cn |
| Second Extraordinary General Meeting of 2022 | Extraordinary General Meeting | 31.9478% | 2022-6-29 | 2022-6-30 | The General Meeting have approved 5 proposals in total, including “Provide Internal Guarantee and External Loans to Overseas Controlling Subsidiary”, “Amendment of Some Clauses in Articles of Association”, “Amendment of Some Clauses in ‘Rules of Procedure for the GM’”, “Amendment of Some Clauses in ‘Rules of Procedure of the BOD” and “ Amendment of Some Clauses in ‘Rules of Procedure of the BOS”, found more in the “Resolution of Second Extraordinary General Meeting of 2022” (No.: 2022-049) released on Juchao Website www.cninfo.com.cn |
(2) Request for extraordinary general meeting by preferred stockholders with rights to vote
□Applicable √ Not applicable
II. Changes of directors, supervisors and senior executives
□Applicable √ Not applicable
There was no change of directors, supervisors and senior executives during the reporting period, refer to theAnnual Report of 2021 for details.
III. Profit distribution plan and capitalizing of common reserves in the period
□Applicable √ Not applicable
There are no cash dividend, bonus and capitalizing of common reserves carried out in the semi-annual
IV. Implementation of the company’s stock incentive plan, employee stock ownership plan or otheremployee incentives
□Applicable √ Not applicable
The Company has no implementation of the company’s stock incentive plan, employee stock ownership plan orother employee incentives in the period.
Section V Environmental and Social ResponsibilityI. Major environmentalThe listed Company and its subsidiary whether belongs to the key sewage units released from environmentalprotection department
□Yes √ No
Administrative penalties imposed for environmental issues during the reporting period
| Name | Cause of penalty | Violations | Penalty results | Impact on production & operation of the listed company | Rectification measures |
| Not applicable | Not applicable | Not applicable | Not applicable | Not applicable | Not applicable |
Other environmental information disclosed with reference to the key emission unitsNot applicableMeasures taken to reduce the carbon emission during the reporting period and their effectiveness
√Applicable □Not applicable
Integrate features of the carbon emissions and special requirements, the Company, perfecting energy efficiencyindex assessment for internal energy management and energy consumption assessment system through tighten upthe energy management works in each production units. Continuously develop energy measurement assessment,follows the principle of system management and establish a complete and effective management system.During thereporting period, the Company vigorously promotes and applies the advanced energy-saving equipment andtechnology within the industry, carried out energy-saving technology improvement works; carried out energy-saving renovation measures to upgrading the automation and intelligence including high-consumption & low-efficiency renovation for air compressor, air compressor upgrading for the join control system, compressed airpressure reduction modification, steam piping energy saving retrofit, research and application on the infrared heatingtechnology, application research of air energy units, application research on electric heating to replace the steamheating and the replacement of energy-efficient heating tiles, etc., combining energy management with theinformation technology construction, at the same time of realizing the leaner production management and enhanceproductivity to reduce the energy waster and emission of CO
.
Reasons for not to disclosing other information with environment concernedThe Company and subordinate subsidiaries are not belongs to the key emission units announced by the authority ofenvironmental protection.
II. Social responsibilityThe company adheres to the core values of "dedication, responsibility, co-creation and sharing", and achieves thepurpose of "staff satisfaction, customer satisfaction, and shareholder satisfaction" through standardized operationand scientific management. While achieving benign development, the company has also actively fulfilled its socialresponsibilities through various forms and channels.
1. Protection of the rights and interests of shareholders and creditors
The company strictly follows the provisions and requirements formulated by the Articles of Association and theRules of Procedure for the General Meeting of Shareholders, regulates the convening, holding and voting proceduresof the general meeting of shareholders, equally treats all shareholders, especially small and medium shareholdersequally, and ensures that all shareholders enjoy equal status and fully exercise their own rights. Under the premiseof strictly implementing the Administrative Measures for Information Disclosure of Listed Companies, the companyactively communicates and exchanges information with investors on the company's operations and management,financial status, etc. through annual performance briefings, Anhui service week for investors by SZSE, investortelephone hotline, e-mails, and the investor relations interactive platform of the Shenzhen Stock Exchange, anddiscloses information to all investors in a truthful, accurate, complete, concise and clear, and easy-to-understandmanner; further, the company attaches great importance to the shareholder return mechanism,in line with the"Shareholder Return Plan for the Next Three Years (2021-2023) of Changhong Meiling Co., Ltd.", combined withthe self-management status and other factors, during the reporting period, the Company implemented the profitdistribution plan for the year of 2021 and giving shareholders a reasonable return on their investment.
2. Protection of the rights and interests of employees
In accordance with relevant laws, regulations and policies, and in light of its own actual situation, the company hasestablished a relatively complete employment management system, including labor contract system, salary andperformance appraisal system, welfare management system, training management system, employee vacationmanagement system, etc. The company pays attention to the vital interests of employees, maximizes the protectionof the legitimate rights and interests of employees and retirees, and strives to form a benefit sharing mechanism forboth company and employees, and establishes a harmonious labor relationship. At the same time, the companyshapes corporate culture and improves employee satisfaction by providing various vacations, allowances,condolences, and organizing colorful leisure activities, sports and cultural festivals, carnivals, etc.
3. Protection of the rights and interests of suppliers, customers and consumers
The company has established a relatively complete procurement management system, optimized and revised systemdocuments in a timely manner, unified information system tools, strictly controlled every link of the procurementbusiness, cultivated core and strategic suppliers, and established a high-end supply chain cultivation plan forcomponent suppliers of high-end products, so as to form a synergy, cooperation and win-win situation between thecompany and its suppliers.The company attaches great importance to product quality and customer needs, and has a relatively advanced and
complete R&D and quality assurance system which has passed ISO9001, ISO14001, ISO45001 management systemcertifications. Laboratory of the Company owns a CNAS qualifications and built its own RoHS laboratory toconduct the strict testing for products, so its products are guaranteed by high quality and reliable performance. Atthe same time, for different types of customers, the company implements classification evaluation and systemmanagement, timely answers or feedbacks and deals with the questions raised by customers, continuously improvesquality services, and enhances brand image. Fully survey, understand customer needs, and do real-time follow-upand result feedback, focus on terminal construction, terminal experience and product training to increase attentionand support, and improve the sales of high-end structural products. For export products sold to various countries,the company conducts product certification in accordance with local laws and regulations, and also internally teststhe reliability of the product and its adaptability to different environments to ensure the reliability of the product inthe target market, and tracks usage feedback by means of customer satisfaction surveys and SCR value monitoring.For the protection of consumers' rights and interests, the company has a relatively advanced closed-loopmanagement system for user services. In order to meet the service needs of users, it has gradually improved thefunction construction of user interaction platforms such as 400 service hotline, brand official website, WeChatpublic account, Douyin, and APP, understands and deals with user needs and problems in a timely manner, andpromotes the process visualization management and user evaluation system management of the work orderprocessing timeline according to user needs. We pay attention to the improvement of consumer product protectionservices, and have upgraded and launched the 180-day unconditional return of Meiling M Fresh refrigerator if notsatisfied with the fresh keeping and the 180-day unconditional return of Meiling Very Clean refrigerator if notsatisfied with the sterilization, so as to effectively meet the needs of users and improve consumer satisfaction.
4. Social welfare
Over the years, the company has been actively participating in social welfare undertakings and various socialwelfare activities. The company strictly implements the internal environmental operation control procedures and aseries management systems related to environment, safety and product quality, such as Energy ManagementRegulations, Safety Production Responsibility System, Safety Training Management System, and "Process QualityControl Points" Management Measures for Refrigerator and Freezer Products, ensures that the company'sproduction and service activities comply with relevant national legal requirements; and actively carries out actionssuch as helping employees with serious illnesses and advocating voluntary donations by employees. During thereporting period, in order to actively fulfill corporate social responsibilities, Zhongke Meiling, a subsidiary of thecompany, shall donate scholarships totaling no more than 5.65 million yuan to 11 well-known domestic universitieswithin 10 years, which will be used to support the development of college education and enhance the brandreputation, social image and influence of the company and its subsidiaries.
5. Consolidate and expand the achievements of poverty alleviation and rural revitalizationThe company actively undertakes corporate social responsibility, and strives to contribute to local povertyalleviation and rural revitalization while achieving its own sound operation and development. At the beginning of2022, the company has successively carried out the "Rural revitalization with Meiling- Base Agricultural Products
Fair", and the love assistance activities for Tongxin Primary School in Tiantangzhai Town, Jinzhai County,positively responding to Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, and assumingthe social responsibility of enterprises.
Section VI Important EventsI. Commitments that the actual controller, shareholders, related party, the buyer and thecompany have fulfilled during the reporting period and have not yet fulfilled by the end ofreporting period
□ Applicable √ Not applicable
The Company has no commitments that the actual controller, shareholders, related party, the buyer and thecompany have fulfilled during the reporting period and have not yet fulfilled by the end of reporting period
II. Non-operational fund occupation from controlling shareholders and its related party
□ Applicable √ Not applicable
No non-operational fund occupation from controlling shareholders and its related party in period.III. External guarantee out of the regulations
□ Applicable √ Not applicable
No external guarantee out of the regulations occurred in the period.IV. Appointment and non-reappointment (dismissal) of CPA
Whether the semi-annual financial report had been audited
□Yes √ No
The semi-annual report was not auditedV. Explanation on “Qualified Opinion” from CPA by the Board and Supervisory Committee
□ Applicable √ Not applicable
VI. Explanation from the Board for “Qualified Opinion” of last year’s
□ Applicable √ Not applicable
VII. Bankruptcy reorganization
□ Applicable √ Not applicable
No bankruptcy reorganization for the Company in reporting periodVIII. Lawsuit(i) Major Litigation and Arbitration Matters
□ Applicable √ Not applicable
During the reporting period, the Company had no major litigation and arbitration matters.(ii) Other litigation matters
□ Applicable √ Not applicable
To maintain the independence and integrity of "Meiling" trademark and trade name, the Company carried out serialsof lawsuits, attribution and administration suits with “Meiling” trademark and corporate name concerned, Up tonow, in view of the infringement to the Company’s "Meiling" trademark and trade name, false propaganda andunfair competition in the market, the Company has carried out many ways including administrative reports, criminalinvestigation and civil litigation to fight against infringement and counterfeiting behavior in the whole country tostop the trademark infringement and unfair competition.
IX. Penalty and rectification
□ Applicable √ Not applicable
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 goodreputation, and there is no large amount due unliquidated debt sentenced by the court.XI. Major related party transaction
(i) Related party transaction with routine operation concerned
√ Applicable □ Not applicable
| Serial | Related party | Relationship | Type of related transaction | Content of related transaction | Pricing principle | Related transaction price (in 10 thousand Yuan) | Related transaction amount (in 10 thousand Yuan) | Proportion in similar transactions (%) | Trading limit approved (in 10 thousand Yuan) | Whether over the approved limited or not (Y/N) | Clearing form for related transaction | Available similar market price | Date of disclosure | Index of disclosure |
| 1 | Sichuan Changhong Electric Co., Ltd. | Controlling shareholder | Commodity purchased | R-three-terminal voltage regulator, integrated circuits, R-insulated gate bipolar transistors, steel plates, plastic parts etc. | Marketing price | 20,658.40 | 20,658.40 | 2.45% | 65,000.00 | N | Spot exchange, Bank acceptance | - | 7 Dec. 2021; 24 Dec. 2021 | Juchao Website (www.cninfo.com.cn) No.: 2021-091, 2021-092, 2021-094, 2021-222 |
| 2 | Changhong Huayi Compressor Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Commodity purchased | Compressor | Marketing price | 19,297.58 | 19,297.58 | 2.29% | 48,000.00 | N | Bank acceptance | - | 7 Dec. 2021; 24 Dec. 2021 | Juchao Website (www.cninfo.com.cn) No.: 2021-091, 2021-092, 2021-094, 2021-222 |
| 3 | Sichuan Changhong Mold Plastic Tech. Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Commodity purchased | Components, plastic parts and lining accessories etc. | Marketing price | 42,116.85 | 42,116.85 | 5.00% | 100,000.00 | N | Spot exchange, Bank acceptance | - | 7 Dec. 2021; 25 Dec. 2021 | Juchao Website (www.cninfo.com.cn) No.: 2021-091, 2021-092, 2021-094, 2021-222 |
| 4 | Sichuan Changhong | Other enterprise control under the same controlling | Commodity | Base plate assembly, black | Marketing price | 24,772.90 | 24,772.90 | 2.94% | 52,000.00 | N | Spot exchange, | - | 7 Dec. 2021; 26 Dec. 2021 | Juchao Website (www.cninfo. |
| Jijia Fine Co., Ltd. | shareholder and ultimate controller | purchased | plate, bracket etc. | Bank acceptance | com.cn) No.: 2021-091, 2021-092, 2021-094, 2021-222 | |||||||||
| 5 | Sichuan Changhong Package Printing Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Commodity purchased | Packing boxes, foam, fixed support block etc. | Marketing price | 7,365.41 | 7,365.41 | 0.87% | 18,000.00 | N | Bank acceptance | - | 7 Dec. 2021; 27 Dec. 2021 | Juchao Website (www.cninfo.com.cn) No.: 2021-091, 2021-092, 2021-094, 2021-222 |
| 6 | Sichuan Changhong Precision Electronics Tech. Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Commodity purchased | Printed board machine insertion machine paste assembly | Marketing price | 1,157.30 | 1,157.30 | 0.14% | 3,000.00 | N | Bank acceptance | - | 7 Dec. 2021; 28 Dec. 2021 | Juchao Website (www.cninfo.com.cn) No.: 2021-091, 2021-092, 2021-094, 2021-222 |
| 7 | Sichuan Changhong International Hotel Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Commodity purchased | Food | Marketing price | 1.17 | 1.17 | 0.00% | 5,000.00 | N | Cash settlement | - | 7 Dec. 2021; 29 Dec. 2021 | Juchao Website (www.cninfo.com.cn) No.: 2021-091, 2021-092, 2021-094, 2021-222 |
| 8 | Guangdong Changhong Electronics Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Commodity purchased | Foam and carton | Marketing price | 230.87 | 230.87 | 0.03% | 10,000.00 | N | Spot exchange, Bank acceptance | - | 7 Dec. 2021; 30 Dec. 2021 | Juchao Website (www.cninfo.com.cn) No.: 2021-091, 2021-092, 2021-094, 2021-222 |
| 9 | Hefei Changhong | Other enterprise control under the | Commodit | Inverter integrated board | Marketing price | 279.42 | 279.42 | 0.03% | 10,000.00 | N | Bank accept | - | 7 Dec. 2021; 31 Dec. 2021 | Juchao Website |
| Industrial Co., Ltd. | same controlling shareholder and ultimate controller | y purchased | ance | (www.cninfo.com.cn) No.: 2021-091, 2021-092, 2021-094, 2021-222 | ||||||||||
| 10 | Sichuan Changhong New Energy Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Commodity purchased | Batteries | Marketing price | 1.91 | 1.91 | 0.00% | 5,000.00 | N | Cash settlement | - | 7 Dec. 2021; 32 Dec. 2021 | Juchao Website (www.cninfo.com.cn) No.: 2021-091, 2021-092, 2021-094, 2021-222 |
| 11 | Sichuan Zhiyijia Network Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Commodity purchased | Air conditioner, LCD TV | Marketing price | 178.81 | 178.81 | 0.02% | 10,000.00 | N | Cash settlement | - | 7 Dec. 2021; 33 Dec. 2021 | Juchao Website (www.cninfo.com.cn) No.: 2021-091, 2021-092, 2021-094, 2021-222 |
| 12 | Changhong International Holdings (Hong Kong) Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Commodity purchased | Television | Marketing price | 202.84 | 202.84 | 0.02% | 8,000.00 | N | Cash settlement | - | 7 Dec. 2021; 34 Dec. 2021 | Juchao Website (www.cninfo.com.cn) No.: 2021-091, 2021-092, 2021-094, 2021-222 |
| 13 | Sichuan Changhong Device Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Commodity purchased | printed board | Marketing price | 506.18 | 506.18 | 0.06% | 10,000.00 | N | Bank acceptance | - | 7 Dec. 2021; 35 Dec. 2021 | Juchao Website (www.cninfo.com.cn) No.: 2021-091, 2021-092, 2021-094, 2021-222 |
| 14 | Sichuan Changhong Electronic Products Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Commodity purchased | Remote controls, switching transformers, printed boards, electronic components, etc. | Marketing price | 1,608.43 | 1,608.43 | 0.19% | 3,000.00 | N | Spot exchange, Bank acceptance | - | 7 Dec. 2021; 36 Dec. 2021 | Juchao Website (www.cninfo.com.cn) No.: 2021-091, 2021-092, 2021-094, 2021-222 |
| 15 | Sichuan Ailian Science & Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Commodity purchased | Wifi module | Marketing price | 460.43 | 460.43 | 0.05% | 5,000.00 | N | Spot exchange, Bank acceptance | - | 7 Dec. 2021; 37 Dec. 2021 | Juchao Website (www.cninfo.com.cn) No.: 2021-091, 2021-092, 2021-094, 2021-222 |
| 16 | Sichuan Aichuang Science & Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Commodity purchased | Inverter integrated board | Marketing price | 5,142.93 | 5,142.93 | 0.61% | 13,000.00 | N | Bank acceptance | - | 7 Dec. 2021; 38 Dec. 2021 | Juchao Website (www.cninfo.com.cn) No.: 2021-091, 2021-092, 2021-094, 2021-222 |
| 17 | Sichuan Aoku Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Commodity purchased | Power board | Marketing price | 1.82 | 1.82 | 0.00% | 5,000.00 | N | Cash settlement | - | 7 Dec. 2021; 39 Dec. 2021 | Juchao Website (www.cninfo.com.cn) No.: 2021-091, 2021-092, 2021-094, 2021-222 |
| 18 | Sichuan Changhong Electronics Holding Group Co., Ltd. | Controlling shareholder and ultimate controller | Accept labor service | Shuttle transportation fee, training fee | Marketing price | 38.59 | 38.59 | 0.05% | 5,000.00 | N | Cash settlement | - | 7 Dec. 2021; 40 Dec. 2021 | Juchao Website (www.cninfo.com.cn) No.: 2021-091, 2021-092, 2021-094, |
| 2021-222 | ||||||||||||||
| 19 | Sichuan Changhong Electric Co., Ltd. | Controlling shareholder | Accept labor service | Software usage fee, information consultation fee, inspection and certification fee | Marketing price | 163.87 | 163.87 | 0.20% | 5,000.00 | N | Cash settlement | - | 7 Dec. 2021; 41 Dec. 2021 | Juchao Website (www.cninfo.com.cn) No.: 2021-091, 2021-092, 2021-094, 2021-222 |
| 20 | Sichuan Changhong Minsheng Logistics Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Accept labor service | Transportation costs, storage and handling charges, freight and miscellaneous charges etc. | Marketing price | 30,520.11 | 30,520.11 | 37.07% | 75,000.00 | N | Cash settlement | - | 7 Dec. 2021; 42 Dec. 2021 | Juchao Website (www.cninfo.com.cn) No.: 2021-091, 2021-092, 2021-094, 2021-222 |
| 21 | Sichuan Changhong Mold Plastic Tech. Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Accept labor service | commission processing fee | Marketing price | 1,131.77 | 1,131.77 | 1.37% | 5,000.00 | N | Spot exchange, Bank acceptance | - | 7 Dec. 2021; 43 Dec. 2021 | Juchao Website (www.cninfo.com.cn) No.: 2021-091, 2021-092, 2021-094, 2021-222 |
| 22 | Sichuan Service Exp. Appliance Service Chain Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Accept labor service | Three packages, equipment repair,miscellaneous fees, installation fee etc. | Marketing price | 10,913.63 | 10,913.63 | 13.26% | 32,000.00 | N | Cash settlement | - | 7 Dec. 2021; 44 Dec. 2021 | Juchao Website (www.cninfo.com.cn) No.: 2021-091, 2021-092, 2021-094, 2021-222 |
| 23 | Sichuan Hongxin Software Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Accept labor service | Software usage fee, service supporting fee and information | Marketing price | 296.28 | 296.28 | 0.36% | 5,000.00 | N | Cash settlement | - | 7 Dec. 2021; 45 Dec. 2021 | Juchao Website (www.cninfo.com.cn) No.: 2021-091, |
| service fee | 2021-092, 2021-094, 2021-222 | |||||||||||||
| 24 | Guangdong Changhong Electronics Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Accept labor service | Service support fee, network service fee etc. | Marketing price | 18.84 | 18.84 | 0.02% | 5,000.00 | N | Cash settlement | - | 7 Dec. 2021; 46 Dec. 2021 | Juchao Website (www.cninfo.com.cn) No.: 2021-091, 2021-092, 2021-094, 2021-222 |
| 25 | Sichuan Jiahong Industrial Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Accept labor service | Meals, property management fees etc. | Marketing price | 342.76 | 342.76 | 0.42% | 5,000.00 | N | Cash settlement | - | 7 Dec. 2021; 47 Dec. 2021 | Juchao Website (www.cninfo.com.cn) No.: 2021-091, 2021-092, 2021-094, 2021-222 |
| 26 | Sichuan Changhong International Hotel Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Accept labor service | Meetings fee, accommodation | Marketing price | 3.66 | 3.66 | 0.00% | 5,000.00 | N | Cash settlement | - | 7 Dec. 2021; 48 Dec. 2021 | Juchao Website (www.cninfo.com.cn) No.: 2021-091, 2021-092, 2021-094, 2021-222 |
| 27 | Sichuan Changhong Property Services Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Accept labor service | Dormitory facility and equipment service fees, property management fees | Marketing price | 5.41 | 5.41 | 0.01% | 5,000.00 | N | Cash settlement | - | 7 Dec. 2021; 49 Dec. 2021 | Juchao Website (www.cninfo.com.cn) No.: 2021-091, 2021-092, 2021-094, 2021-222 |
| 28 | Sichuan Zhiyijia Network | Other enterprise control under the same controlling shareholder and | Accept labor service | Design service fee and platform usage fee | Marketing price | 10.37 | 10.37 | 0.01% | 5,000.00 | N | Cash settlement | - | 7 Dec. 2021; 50 Dec. 2021 | Juchao Website (www.cninfo.com.cn) No.: |
| Technology Co., Ltd. | ultimate controller | 2021-091, 2021-092, 2021-094, 2021-222 | ||||||||||||
| 29 | Sichuan Changhong Intelligent Manufacturing Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Accept labor service | test modification fee | Marketing price | 7.31 | 7.31 | 0.01% | 5,000.00 | N | Bank acceptance | - | 7 Dec. 2021; 51 Dec. 2021 | Juchao Website (www.cninfo.com.cn) No.: 2021-091, 2021-092, 2021-094, 2021-222 |
| 30 | Sichuan Changhong Jijia Fine Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Accept labor service | commission processing fee | Marketing price | 665.53 | 665.53 | 0.81% | 5,000.00 | N | Bank acceptance | - | 7 Dec. 2021; 52 Dec. 2021 | Juchao Website (www.cninfo.com.cn) No.: 2021-091, 2021-092, 2021-094, 2021-222 |
| 31 | Sichuan Qiruike Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Accept labor service | Technology development service fee, instrument repair fee, inspection and certification fee, etc. | Marketing price | 533.02 | 533.02 | 0.65% | 5,000.00 | N | Cash settlement | - | 7 Dec. 2021; 53 Dec. 2021 | Juchao Website (www.cninfo.com.cn) No.: 2021-091, 2021-092, 2021-094, 2021-222 |
| 32 | Sichuan Changhong Electric Co., Ltd. | Controlling shareholder | Purchase of fuel power | Electricity, steam, water, compressed air | Marketing price | 1,332.18 | 1,332.18 | 0.16% | 65,000.00 | N | Cash settlement | - | 7 Dec. 2021; 54 Dec. 2021 | Juchao Website (www.cninfo.com.cn) No.: 2021-091, 2021-092, 2021-094, 2021-222 |
| 33 | Changhong Huayi | Other enterprise control under the | Purchase of | Compressed air | Marketing price | 10.70 | 10.70 | 0.00% | 48,000.00 | N | Cash settle | - | 7 Dec. 2021; 55 Dec. 2021 | Juchao Website |
| Compressor Co., Ltd. | same controlling shareholder and ultimate controller | fuel power | ment | (www.cninfo.com.cn) No.: 2021-091, 2021-092, 2021-094, 2021-222 | ||||||||||
| 34 | Guangdong Changhong Electronics Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Purchase of fuel power | Electricity, water, compressed air | Marketing price | 28.59 | 28.59 | 0.00% | 10,000.00 | N | Cash settlement | - | 7 Dec. 2021; 56 Dec. 2021 | Juchao Website (www.cninfo.com.cn) No.: 2021-091, 2021-092, 2021-094, 2021-222 |
| 35 | Hefei Changhong New Energy Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Purchase of fuel power | Electricity fees | Marketing price | 16.35 | 16.35 | 0.00% | 10,000.00 | N | Cash settlement | - | 7 Dec. 2021; 57 Dec. 2021 | Juchao Website (www.cninfo.com.cn) No.: 2021-091, 2021-092, 2021-094, 2021-222 |
| 36 | Sichuan Changhong Property Services Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Purchase of fuel power | Electricity fees | Marketing price | 1.35 | 1.35 | 0.00% | 5,000.00 | N | Cash settlement | - | 7 Dec. 2021; 58 Dec. 2021 | Juchao Website (www.cninfo.com.cn) No.: 2021-091, 2021-092, 2021-094, 2021-222 |
| 37 | Hefei Changhong Industrial Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Purchase of fuel power | Electricity, water fee | Marketing price | 58.03 | 58.03 | 0.01% | 10,000.00 | N | Cash settlement | - | 7 Dec. 2021; 59 Dec. 2021 | Juchao Website (www.cninfo.com.cn) No.: 2021-091, 2021-092, 2021-094, 2021-222 |
| 38 | Sichuan | Controlling | Sales | Kitchen and | Marketi | 23.92 | 23.92 | 0.00% | 1,500.00 | N | Spot | - | 7 Dec. 2021; 60 | Juchao |
| Changhong Electric Co., Ltd. | shareholder | of goods | bathroom and small appliances | ng price | exchange, Bank acceptance | Dec. 2021 | Website (www.cninfo.com.cn) No.: 2021-091, 2021-092, 2021-094, 2021-222 | |||||||
| 39 | Sichuan Changhong Mold Plastic Tech. Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | Plastic parts | Marketing price | 43.19 | 43.19 | 0.00% | 31,000.00 | N | Cash settlement | - | 7 Dec. 2021; 61 Dec. 2021 | Juchao Website (www.cninfo.com.cn) No.: 2021-091, 2021-092, 2021-094, 2021-222 |
| 40 | Lejiayi Chain Management Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | Air conditioner, water heater and small appliances | Marketing price | 104.10 | 104.10 | 0.01% | 5,000.00 | N | Cash settlement | - | 7 Dec. 2021; 62 Dec. 2021 | Juchao Website (www.cninfo.com.cn) No.: 2021-091, 2021-092, 2021-094, 2021-222 |
| 41 | Sichuan Zhiyijia Network Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | washing machine,Refrigerator,freezer,Air conditioner,small appliances | Marketing price | 343,787.59 | 343,787.59 | 33.91% | 720,000.00 | N | Spot exchange, Bank acceptance | - | 7 Dec. 2021; 63 Dec. 2021 | Juchao Website (www.cninfo.com.cn) No.: 2021-091, 2021-092, 2021-094, 2021-222 |
| 42 | Sichuan Changhong Device Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | small appliances | Marketing price | 0.11 | 0.11 | 0.00% | 5,000.00 | N | Cash settlement | - | 7 Dec. 2021; 64 Dec. 2021 | Juchao Website (www.cninfo.com.cn) No.: 2021-091, 2021-092, 2021-094, 2021-222 |
| 43 | Sichuan Changhong Minsheng Logistics Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | Air conditioner,Refrigerator | Marketing price | 13.97 | 13.97 | 0.00% | 5,000.00 | N | Cash settlement | - | 7 Dec. 2021; 65 Dec. 2021 | Juchao Website (www.cninfo.com.cn) No.: 2021-091, 2021-092, 2021-094, 2021-222 |
| 44 | Sichuan Service Exp. Appliance Service Chain Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | Air conditioners,inverter integrated boards, components etc. | Marketing price | 302.53 | 302.53 | 0.03% | 5,000.00 | N | Cash settlement | - | 7 Dec. 2021; 66 Dec. 2021 | Juchao Website (www.cninfo.com.cn) No.: 2021-091, 2021-092, 2021-094, 2021-222 |
| 45 | Sichuan Huafeng Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | Air conditioner | Marketing price | 35.31 | 35.31 | 0.00% | 2,500.00 | N | Cash settlement | - | 7 Dec. 2021; 67 Dec. 2021 | Juchao Website (www.cninfo.com.cn) No.: 2021-091, 2021-092, 2021-094, 2021-222 |
| 46 | Sichuan Changhong Real Estate Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | Air conditioner | Marketing price | 9.72 | 9.72 | 0.00% | 5,000.00 | N | Cash settlement | - | 7 Dec. 2021; 68 Dec. 2021 | Juchao Website (www.cninfo.com.cn) No.: 2021-091, 2021-092, 2021-094, 2021-222 |
| 47 | Hunan Grand-Pro Intelligent Tech. Company | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | Labeling | Marketing price | 0.05 | 0.05 | 0.00% | 48,000.00 | N | Cash settlement | - | 7 Dec. 2021; 69 Dec. 2021 | Juchao Website (www.cninfo.com.cn) No.: 2021-091, 2021-092, |
| 2021-094, 2021-222 | ||||||||||||||
| 48 | Guangdong Changhong Electronics Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | small appliances | Marketing price | 1.99 | 1.99 | 0.00% | 5,000.00 | N | Cash settlement | - | 7 Dec. 2021; 70 Dec. 2021 | Juchao Website (www.cninfo.com.cn) No.: 2021-091, 2021-092, 2021-094, 2021-222 |
| 49 | Sichuan Aoku Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | Air conditioner | Marketing price | 23.01 | 23.01 | 0.00% | 2,500.00 | N | Cash settlement | - | 7 Dec. 2021; 71 Dec. 2021 | Juchao Website (www.cninfo.com.cn) No.: 2021-091, 2021-092, 2021-094, 2021-222 |
| 50 | Changhong Huayi Compressor Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | Air conditioner | Marketing price | 7.26 | 7.26 | 0.00% | 48,000.00 | N | Cash settlement | - | 7 Dec. 2021; 72 Dec. 2021 | Juchao Website (www.cninfo.com.cn) No.: 2021-091, 2021-092, 2021-094, 2021-222 |
| 51 | Guangyuan Changhong Electronic Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | Air conditioner,Kitchen and bathroom,small appliances | Marketing price | 13.79 | 13.79 | 0.00% | 5,000.00 | N | Cash settlement | - | 7 Dec. 2021; 73 Dec. 2021 | Juchao Website (www.cninfo.com.cn) No.: 2021-091, 2021-092, 2021-094, 2021-222 |
| 52 | CHANGHONG(HK)TRADINGLIMITED | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | Air conditioner | Marketing price | 17,413.91 | 17,413.91 | 1.72% | 130,000.00 | N | Cash settlement | - | 7 Dec. 2021; 74 Dec. 2021 | Juchao Website (www.cninfo.com.cn) No.: 2021-091, |
| 2021-092, 2021-094, 2021-222 | ||||||||||||||
| 53 | CHANGHONGELECTRIC(AUSTRALIA)PTY.LTD. | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | Refrigerator,freezers,washing machine and accessories | Marketing price | 7,001.05 | 7,001.05 | 0.69% | 130,000.00 | N | Cash settlement | - | 7 Dec. 2021; 75 Dec. 2021 | Juchao Website (www.cninfo.com.cn) No.: 2021-091, 2021-092, 2021-094, 2021-222 |
| 54 | Orion.PDP.Co.,ltd | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | Refrigerator | Marketing price | 2,814.00 | 2,814.00 | 0.28% | 5,000.00 | N | Cash settlement | - | 7 Dec. 2021; 76 Dec. 2021 | Juchao Website (www.cninfo.com.cn) No.: 2021-091, 2021-092, 2021-094, 2021-222 |
| 55 | ChanghongEuropeElectrics.r.o | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | Refrigerator | Marketing price | 305.51 | 305.51 | 0.03% | 10,000.00 | N | Cash settlement | - | 7 Dec. 2021; 77 Dec. 2021 | Juchao Website (www.cninfo.com.cn) No.: 2021-091, 2021-092, 2021-094, 2021-222 |
| 56 | CHANGHONGELECTRICMIDDLEEASTFZCO | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | Refrigerator,freezers and accessories | Marketing price | 446.27 | 446.27 | 0.04% | 5,000.00 | N | Cash settlement | - | 7 Dec. 2021; 78 Dec. 2021 | Juchao Website (www.cninfo.com.cn) No.: 2021-091, 2021-092, 2021-094, 2021-222 |
| 57 | Changhong International Holdings (Hong | Other enterprise control under the same controlling shareholder and | Sales of goods | Refrigerator,freezers,Air conditioner, kitchen utensils | Marketing price | 8,390.66 | 8,390.66 | 0.83% | 35,000.00 | N | Cash settlement | - | 7 Dec. 2021; 79 Dec. 2021 | Juchao Website (www.cninfo.com.cn) No.: |
| Kong) Co., Ltd. | ultimate controller | 2021-091, 2021-092, 2021-094, 2021-222 | ||||||||||||
| 58 | Sichuan Aichuang Science & Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | Kitchen and bathroom and small appliances | Marketing price | 2.19 | 2.19 | 0.00% | 2,500.00 | N | Cash settlement | - | 7 Dec. 2021; 80 Dec. 2021 | Juchao Website (www.cninfo.com.cn) No.: 2021-091, 2021-092, 2021-094, 2021-222 |
| 59 | Sichuan Changhong Mold Plastic Tech. Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Providing services | Labor cost | Marketing price | 13.32 | 13.32 | 0.77% | 5,000.00 | N | Cash settlement | - | 7 Dec. 2021; 81 Dec. 2021 | Juchao Website (www.cninfo.com.cn) No.: 2021-091, 2021-092, 2021-094, 2021-222 |
| 60 | Sichuan Changhong Jijia Fine Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Providing services | Labor cost | Marketing price | 3.76 | 3.76 | 0.22% | 5,000.00 | N | Cash settlement | - | 7 Dec. 2021; 82 Dec. 2021 | Juchao Website (www.cninfo.com.cn) No.: 2021-091, 2021-092, 2021-094, 2021-222 |
| 61 | Sichuan Aichuang Science & Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Providing services | Technical service fee,Labor cost | Marketing price | -78.97 | -78.97 | -4.56% | 2,500.00 | N | Cash settlement | - | 7 Dec. 2021; 83 Dec. 2021 | Juchao Website (www.cninfo.com.cn) No.: 2021-091, 2021-092, 2021-094, 2021-222 |
| 62 | Sichuan Huafeng Technology | Other enterprise control under the same controlling | Providing servic | Labor cost | Marketing price | 36.61 | 36.61 | 2.11% | 2,500.00 | N | Cash settlement | - | 7 Dec. 2021; 84 Dec. 2021 | Juchao Website (www.cninfo. |
| Co., Ltd. | shareholder and ultimate controller | es | com.cn) No.: 2021-091, 2021-092, 2021-094, 2021-222 | |||||||||||
| 63 | Sichuan Zhiyijia Network Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Providing services | Service fee | Marketing price | 0.84 | 0.84 | 0.05% | 5,000.00 | N | Cash settlement | - | 7 Dec. 2021; 85 Dec. 2021 | Juchao Website (www.cninfo.com.cn) No.: 2021-091, 2021-092, 2021-094, 2021-222 |
| 64 | Sichuan Changhong Electric Co., Ltd. | Controlling shareholder | Providing services | Labor cost | Marketing price | -32.65 | -32.65 | -1.88% | 5,000.00 | N | Cash settlement | - | 7 Dec. 2021; 86 Dec. 2021 | Juchao Website (www.cninfo.com.cn) No.: 2021-091, 2021-092, 2021-094, 2021-222 |
| 65 | Sichuan Changhong Device Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Providing services | Technical service fee | Marketing price | 8.01 | 8.01 | 0.46% | 5,000.00 | N | Cash settlement | - | 7 Dec. 2021; 87 Dec. 2021 | Juchao Website (www.cninfo.com.cn) No.: 2021-091, 2021-092, 2021-094, 2021-222 |
| 66 | Changhong Huayi Compressor Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Providing services | Technical service fee | Marketing price | 35.54 | 35.54 | 2.05% | 500.00 | N | Cash settlement | - | 7 Dec. 2021; 88 Dec. 2021 | Juchao Website (www.cninfo.com.cn) No.: 2021-091, 2021-092, 2021-094, 2021-222 |
| 67 | Sichuan Changhong | Other enterprise control under the | Providing | Labor cost | Marketing price | 17.41 | 17.41 | 1.00% | 5,000.00 | N | Cash settle | - | 7 Dec. 2021; 89 Dec. 2021 | Juchao Website |
| Minsheng Logistics Co., Ltd. | same controlling shareholder and ultimate controller | services | ment | (www.cninfo.com.cn) No.: 2021-091, 2021-092, 2021-094, 2021-222 | ||||||||||
| 68 | Hefei Changhong Industrial Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Providing services | Labor cost | Marketing price | 0.02 | 0.02 | 0.00% | 5,000.00 | N | Cash settlement | - | 7 Dec. 2021; 90 Dec. 2021 | Juchao Website (www.cninfo.com.cn) No.: 2021-091, 2021-092, 2021-094, 2021-222 |
| 69 | Sichuan Service Exp. Appliance Service Chain Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Providing services | Labor cost | Marketing price | 117.25 | 117.25 | 6.77% | 5,000.00 | N | Cash settlement | - | 7 Dec. 2021; 91 Dec. 2021 | Juchao Website (www.cninfo.com.cn) No.: 2021-091, 2021-092, 2021-094, 2021-222 |
| 70 | Sichuan Aoku Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Providing services | Labor cost | Marketing price | 15.62 | 15.62 | 0.90% | 2,500.00 | N | Cash settlement | - | 7 Dec. 2021; 92 Dec. 2021 | Juchao Website (www.cninfo.com.cn) No.: 2021-091, 2021-092, 2021-094, 2021-222 |
| 71 | Sichuan Changhong International Hotel Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Providing services | Maintenance fees | Marketing price | 1.65 | 1.65 | 0.10% | 2,500.00 | N | Cash settlement | - | 7 Dec. 2021; 93 Dec. 2021 | Juchao Website (www.cninfo.com.cn) No.: 2021-091, 2021-092, 2021-094, 2021-222 |
| 72 | Sichuan | Other enterprise | Provi | Labor cost | Marketi | 0.13 | 0.13 | 0.01% | 2,500.00 | N | Cash | - | 7 Dec. 2021; 94 | Juchao |
| Qiruike Technology Co., Ltd. | control under the same controlling shareholder and ultimate controller | ding services | ng price | settlement | Dec. 2021 | Website (www.cninfo.com.cn) No.: 2021-091, 2021-092, 2021-094, 2021-222 | ||||||||
| 73 | Guangyuan Hongcheng Industrial Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Providing services | Labor cost | Marketing price | 4.59 | 4.59 | 0.26% | 2,500.00 | N | Cash settlement | - | 7 Dec. 2021; 95 Dec. 2021 | Juchao Website (www.cninfo.com.cn) No.: 2021-091, 2021-092, 2021-094, 2021-222 |
| 74 | Yuanxin Financial Lease Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Providing services | Service fee of Financial statement | Marketing price | 9.57 | 9.57 | 0.55% | 5,000.00 | N | Cash settlement | - | 7 Dec. 2021; 96 Dec. 2021 | Juchao Website (www.cninfo.com.cn) No.: 2021-091, 2021-092, 2021-094, 2021-222 |
| 75 | Sichuan Changhong Property Service Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Providing services | Technical service fee | Marketing price | 8.58 | 8.58 | 0.50% | 2,500.00 | N | Cash settlement | - | 7 Dec. 2021; 97 Dec. 2021 | Juchao Website (www.cninfo.com.cn) No.: 2021-091, 2021-092, 2021-094, 2021-222 |
| 76 | Sichuan Changhong Jiechuang Lithium Battery Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Providing services | Labor cost | Marketing price | 2.56 | 2.56 | 0.15% | 2,500.00 | N | Cash settlement | - | 7 Dec. 2021; 98 Dec. 2021 | Juchao Website (www.cninfo.com.cn) No.: 2021-091, 2021-092, 2021-094, 2021-222 |
| 77 | Guangdong Changhong Electronics Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Provide fuel power | Water fee, electricity fees | Marketing price | 0.28 | 0.28 | 0.00% | 5,000.00 | N | Cash settlement | - | 7 Dec. 2021; 99 Dec. 2021 | Juchao Website (www.cninfo.com.cn) No.: 2021-091, 2021-092, 2021-094, 2021-222 |
| 78 | Sichuan Changhong Minsheng Logistics Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Provide fuel power | Water fee, electricity fees | Marketing price | 2.19 | 2.19 | 0.00% | 5,000.00 | N | Cash settlement | - | 7 Dec. 2021; 100 Dec. 2021 | Juchao Website (www.cninfo.com.cn) No.: 2021-091, 2021-092, 2021-094, 2021-222 |
| 79 | Sichuan Changhong Jijia Fine Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Provide fuel power | Water fee, electricity fees | Marketing price | 7.89 | 7.89 | 0.00% | 5,000.00 | N | Cash settlement | - | 7 Dec. 2021; 101 Dec. 2021 | Juchao Website (www.cninfo.com.cn) No.: 2021-091, 2021-092, 2021-094, 2021-222 |
| 80 | Sichuan Changhong Mold Plastic Tech. Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Provide fuel power | Water fee, electricity fees,steam fee | Marketing price | 322.08 | 322.08 | 0.03% | 5,000.00 | N | Cash settlement | - | 7 Dec. 2021; 102 Dec. 2021 | Juchao Website (www.cninfo.com.cn) No.: 2021-091, 2021-092, 2021-094, 2021-222 |
| 81 | Sichuan Zhiyijia Network Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Provide fuel power | Water fee, electricity fees | Marketing price | 3.52 | 3.52 | 0.00% | 5,000.00 | N | Cash settlement | - | 7 Dec. 2021; 103 Dec. 2021 | Juchao Website (www.cninfo.com.cn) No.: 2021-091, 2021-092, 2021-094, |
| 2021-222 | ||||||||||||||
| 82 | Sichuan Changhong Precision Electronics Tech. Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Provide fuel power | Water fee, electricity fees | Marketing price | 0.72 | 0.72 | 0.00% | 5,000.00 | N | Cash settlement | - | 7 Dec. 2021; 104 Dec. 2021 | Juchao Website (www.cninfo.com.cn) No.: 2021-091, 2021-092, 2021-094, 2021-222 |
| 83 | Sichuan Changhong Device Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Provide fuel power | Water fee, electricity fees,compressed air | Marketing price | 15.27 | 15.27 | 0.00% | 5,000.00 | N | Cash settlement | - | 7 Dec. 2021; 105 Dec. 2021 | Juchao Website (www.cninfo.com.cn) No.: 2021-091, 2021-092, 2021-094, 2021-222 |
| 84 | Changhong International Holdings (Hong Kong) Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Provide fuel power | Water fee, electricity fees | Marketing price | 2.95 | 2.95 | 0.00% | 5,000.00 | N | Cash settlement | - | 7 Dec. 2021; 106 Dec. 2021 | Juchao Website (www.cninfo.com.cn) No.: 2021-091, 2021-092, 2021-094, 2021-222 |
| 85 | Guangdong Changhong Electronics Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Rent to the related party | Lodging house | Marketing price | 1.42 | 1.42 | 0.02% | 4,000.00 | N | Cash settlement | - | 7 Dec. 2021; 107 Dec. 2021 | Juchao Website (www.cninfo.com.cn) No.: 2021-091, 2021-092, 2021-094, 2021-222 |
| 86 | Hefei Changhong Industrial Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Rent to the related party | Rental apartment,warehouses | Marketing price | 30.32 | 30.32 | 0.51% | 4,000.00 | N | Cash settlement | - | 7 Dec. 2021; 108 Dec. 2021 | Juchao Website (www.cninfo.com.cn) No.: 2021-091, 2021-092, |
| 2021-094, 2021-222 | ||||||||||||||
| 87 | Sichuan Aichuang Science & Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Rent to the related party | Warehouse for rent | Marketing price | 1.88 | 1.88 | 0.03% | 2,500.00 | N | Cash settlement | - | 7 Dec. 2021; 109 Dec. 2021 | Juchao Website (www.cninfo.com.cn) No.: 2021-091, 2021-092, 2021-094, 2021-222 |
| 88 | Sichuan Ailian Science & Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Rent to the related party | Warehouse for rent | Marketing price | 0.09 | 0.09 | 0.00% | 2,500.00 | N | Cash settlement | - | 7 Dec. 2021; 110 Dec. 2021 | Juchao Website (www.cninfo.com.cn) No.: 2021-091, 2021-092, 2021-094, 2021-222 |
| 89 | Sichuan Aoku Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Rent to the related party | Warehouse for rent | Marketing price | 0.16 | 0.16 | 0.00% | 2,500.00 | N | Cash settlement | - | 7 Dec. 2021; 111 Dec. 2021 | Juchao Website (www.cninfo.com.cn) No.: 2021-091, 2021-092, 2021-094, 2021-222 |
| 90 | Sichuan Service Exp. Appliance Service Chain Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Rent to the related party | Rental apartment,office | Marketing price | 11.77 | 11.77 | 0.20% | 4,000.00 | N | Cash settlement | - | 7 Dec. 2021; 112 Dec. 2021 | Juchao Website (www.cninfo.com.cn) No.: 2021-091, 2021-092, 2021-094, 2021-222 |
| 91 | Sichuan Qiruike Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Rent to the related party | Lease of factory | Marketing price | 4.73 | 4.73 | 0.08% | 2,500.00 | N | Cash settlement | - | 7 Dec. 2021; 113 Dec. 2021 | Juchao Website (www.cninfo.com.cn) No.: 2021-091, |
| 2021-092, 2021-094, 2021-222 | ||||||||||||||
| 92 | Sichuan Changhong Electric Co., Ltd. | Controlling shareholder | Rent to the related party | Lease of factory,equipment | Marketing price | 151.16 | 151.16 | 2.54% | 4,000.00 | N | Cash settlement | - | 7 Dec. 2021; 114 Dec. 2021 | Juchao Website (www.cninfo.com.cn) No.: 2021-091, 2021-092, 2021-094, 2021-222 |
| 93 | Sichuan Changhong Jijia Fine Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Rent to the related party | Rental apartment,warehouses,plants,equipment | Marketing price | 222.83 | 222.83 | 3.74% | 4,000.00 | N | Cash settlement | - | 7 Dec. 2021; 115 Dec. 2021 | Juchao Website (www.cninfo.com.cn) No.: 2021-091, 2021-092, 2021-094, 2021-222 |
| 94 | Sichuan Changhong Precision Electronics Tech. Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Rent to the related party | Serviced apartment, living quarters | Marketing price | 8.97 | 8.97 | 0.15% | 4,000.00 | N | Cash settlement | - | 7 Dec. 2021; 116 Dec. 2021 | Juchao Website (www.cninfo.com.cn) No.: 2021-091, 2021-092, 2021-094, 2021-222 |
| 95 | Sichuan Changhong Minsheng Logistics Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Rent to the related party | Serviced apartment, office, etc. | Marketing price | 14.22 | 14.22 | 0.24% | 4,000.00 | N | Cash settlement | - | 7 Dec. 2021; 117 Dec. 2021 | Juchao Website (www.cninfo.com.cn) No.: 2021-091, 2021-092, 2021-094, 2021-222 |
| 96 | Sichuan Changhong Mold Plastic Tech. Co., | Other enterprise control under the same controlling shareholder and | Rent to the related | Serviced apartment, warehouse, workshop, | Marketing price | 433.61 | 433.61 | 7.28% | 4,000.00 | N | Cash settlement | - | 7 Dec. 2021; 118 Dec. 2021 | Juchao Website (www.cninfo.com.cn) No.: |
| Ltd. | ultimate controller | party | equipment and living quarters | 2021-091, 2021-092, 2021-094, 2021-222 | ||||||||||
| 97 | Sichuan Changhong Device Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Rent to the related party | Lease of factory | Marketing price | 108.73 | 108.73 | 1.83% | 4,000.00 | N | Cash settlement | - | 7 Dec. 2021; 119 Dec. 2021 | Juchao Website (www.cninfo.com.cn) No.: 2021-091, 2021-092, 2021-094, 2021-222 |
| 98 | Sichuan Zhiyijia Network Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Rent to the related party | Rental apartment | Marketing price | 9.41 | 9.41 | 0.16% | 4,000.00 | N | Cash settlement | - | 7 Dec. 2021; 120 Dec. 2021 | Juchao Website (www.cninfo.com.cn) No.: 2021-091, 2021-092, 2021-094, 2021-222 |
| 99 | Chengdu Changhong Electronic Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Leasing from related party | Leasing office | Marketing price | 36.30 | 36.30 | 0.61% | 4,000.00 | N | Cash settlement | - | 7 Dec. 2021; 121 Dec. 2021 | Juchao Website (www.cninfo.com.cn) No.: 2021-091, 2021-092, 2021-094, 2021-222 |
| 100 | Guangdong Changhong Electronics Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Leasing from related party | Lease of staff dormitory, plant | Marketing price | 78.15 | 78.15 | 1.31% | 4,000.00 | N | Cash settlement | - | 7 Dec. 2021; 122 Dec. 2021 | Juchao Website (www.cninfo.com.cn) No.: 2021-091, 2021-092, 2021-094, 2021-222 |
| 101 | Hefei Changhong Industrial | Other enterprise control under the same controlling | Leasing from | lease of plant | Marketing price | 89.37 | 89.37 | 1.50% | 4,000.00 | N | Cash settlement | - | 7 Dec. 2021; 123 Dec. 2021 | Juchao Website (www.cninfo. |
| Co., Ltd. | shareholder and ultimate controller | related party | com.cn) No.: 2021-091, 2021-092, 2021-094, 2021-222 | |||||||||||
| 102 | Sichuan Jiahong Industrial Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Leasing from related party | Lease of staff dormitory | Marketing price | 19.39 | 19.39 | 0.33% | 5,000.00 | N | Cash settlement | - | 7 Dec. 2021; 124 Dec. 2021 | Juchao Website (www.cninfo.com.cn) No.: 2021-091, 2021-092, 2021-094, 2021-222 |
| 103 | Sichuan Changhong Electric Co., Ltd. | Controlling shareholder | Leasing from related party | Lease of laboratory and workshop | Marketing price | 181.22 | 181.22 | 3.04% | 4,000.00 | N | Cash settlement | - | 7 Dec. 2021; 125 Dec. 2021 | Juchao Website (www.cninfo.com.cn) No.: 2021-091, 2021-092, 2021-094, 2021-222 |
| 104 | Sichuan Changhong Electronics Holding Group Co., Ltd. | Controlling shareholder and ultimate controller | Leasing from related party | Lease shop | Marketing price | 6.28 | 6.28 | 0.11% | 5,000.00 | N | Cash settlement | - | 7 Dec. 2021; 126 Dec. 2021 | Juchao Website (www.cninfo.com.cn) No.: 2021-091, 2021-092, 2021-094, 2021-222 |
| 105 | Changhong Huayi Compressor Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Leasing from related party | Lease of staff dormitory | Marketing price | 4.43 | 4.43 | 0.07% | 500.00 | N | Cash settlement | - | 7 Dec. 2021; 127 Dec. 2021 | Juchao Website (www.cninfo.com.cn) No.: 2021-091, 2021-092, 2021-094, 2021-222 |
| 106 | Sichuan Changhong | Other enterprise control under the | Purchase | assembly line body | Marketing price | 48.43 | 48.43 | 0.39% | 3,000.00 | N | Bank accept | - | 7 Dec. 2021; 128 Dec. 2021 | Juchao Website |
| Intelligent Manufacturing Technology Co., Ltd. | same controlling shareholder and ultimate controller | and construction of fixed assets | ance | (www.cninfo.com.cn) No.: 2021-091, 2021-092, 2021-094, 2021-222 | ||||||||||
| 107 | Sichuan Changhong Electric Co., Ltd. | Controlling shareholder | Purchase and construction of fixed assets | Relocation and renovation equipment | Marketing price | 140.00 | 140.00 | 1.14% | 1,500.00 | N | Cash settlement | - | 7 Dec. 2021; 129 Dec. 2021 | Juchao Website (www.cninfo.com.cn) No.: 2021-091, 2021-092, 2021-094, 2021-222 |
| 108 | Sichuan Hongxin Software Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Purchase and construction of fixed assets | Knowledge management, integration and functional improvement projects | Marketing price | 157.03 | 157.03 | 1.27% | 1,500.00 | N | Cash settlement | - | 7 Dec. 2021; 130 Dec. 2021 | Juchao Website (www.cninfo.com.cn) No.: 2021-091, 2021-092, 2021-094, 2021-222 |
| 109 | Sichuan Zhiyijia Network Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Purchase of fixed assets | TV | Marketing price | 0.84 | 0.84 | 0.01% | 1,500.00 | N | Cash settlement | - | 7 Dec. 2021; 131 Dec. 2021 | Juchao Website (www.cninfo.com.cn) No.: 2021-091, 2021-092, 2021-094, 2021-222 |
| 110 | Guangdong Changhong Electronics Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Purchase of fixed assets | TV | Marketing price | 0.06 | 0.06 | 0.00% | 1,500.00 | N | Cash settlement | - | 7 Dec. 2021; 132 Dec. 2021 | Juchao Website (www.cninfo.com.cn) No.: 2021-091, 2021-092, 2021-094, 2021-222 |
| 111 | Mianyang | Other enterprise | Purch | Plant construction | Marketi | 45.26 | 45.26 | 0.37% | 1,500.00 | N | Cash | - | 7 Dec. 2021; 133 | Juchao |
| Science & Technology City Big Data Technology Co., Ltd. | control under the same controlling shareholder and ultimate controller | ase and construction of fixed assets | ng price | settlement | Dec. 2021 | Website (www.cninfo.com.cn) No.: 2021-091, 2021-092, 2021-094, 2021-222 | ||||||||
| 112 | Sichuan Changhong Electronics Holding Group Co., Ltd. | Controlling shareholder and ultimate controller | Purchase and construction of fixed assets | Fire upgrades | Marketing price | 9.43 | 9.43 | 0.08% | 5,000.00 | N | Cash settlement | - | 7 Dec. 2021; 134 Dec. 2021 | Juchao Website (www.cninfo.com.cn) No.: 2021-091, 2021-092, 2021-094, 2021-222 |
| 113 | Sichuan Qiruike Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Purchase of fixed assets | laboratory equipment | Marketing price | 6.56 | 6.56 | 0.05% | 5,000.00 | N | Cash settlement | - | 7 Dec. 2021; 135 Dec. 2021 | Juchao Website (www.cninfo.com.cn) No.: 2021-091, 2021-092, 2021-094, 2021-222 |
| 114 | Sichuan Aoku Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Sale of fixed assets | Computers, monitors, current probes, etc. | Marketing price | 12.10 | 12.10 | 1.59% | 2,500.00 | N | Cash settlement | - | 7 Dec. 2021; 136 Dec. 2021 | Juchao Website (www.cninfo.com.cn) No.: 2021-091, 2021-092, 2021-094, 2021-222 |
| 115 | Yuanxin Financial Lease Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Financing business | Financing business | Marketing price | 21,168.68 | 21,168.68 | -- | 82,000.00 | N | Cash settlement | - | 7 Dec. 2021; 137 Dec. 2021 | Juchao Website (www.cninfo.com.cn) No.: 2021-091, 2021-092, 2021-094, 2021-222 |
| Total | -- | -- | 574,343.30 | -- | -- | -- | -- | -- | -- | -- |
| Detail of sales return with major amount involved | Not applicable | |||||||||
| Report the actual implementation of the daily related transactions which were projected about their total amount by types during the reporting period (if applicable) | 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 2022 was 2590 million yuan at most (tax-excluded), actually 1,005,125,600 yuan occurred in reporting period. 2. It is estimated that the related transaction amount resulted by purchasing goods (Including compressors, smart vacuum cleaners, etc.) with Changhong Huayi and its subsidiary by the Company for year of 2022 was 485 million yuan at most (tax-excluded), actually 193,555,600 yuan 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 2022 was 15 million yuan at most (tax-excluded), actually 3,431,900 yuan occurred in reporting period. 4. It is estimated that the related transaction amount resulted by selling goods and providing fuel and power to Sichuan Changhong and its subsidiary by the Company for year of 2022 was 9425 million yuan at most (tax-excluded), actually 3,782,132,100 yuan occurred in reporting period. 5. It is estimated that the related transaction amount resulted by leasing business to Sichuan Changhong and its subsidiary by the Company for year of 2022 was 40 million yuan at most (tax-excluded), actually 13,774,800 yuan occurred in reporting period. 6. It is estimated that the related transaction amount from domestic finished goods logistic business outsourcing to Sichuan Changhong Minsheng Logistics Co., Ltd. by the Company for year of 2022 was 750 million yuan at most (tax-excluded), actually 305,201,100 yuan occurred in reporting period. 7. It is estimated that the related transaction amount from after sales service of domestic goods outsourcing to Sichuan Service Exp. Appliance Service Chain Co., Ltd. by the Company for year of 2022 was 320 million yuan at most actually 109,136,300 yuan occurred in reporting period. 8. It is estimated that the related transaction amount resulted by accepting other service and labor service etc. or providing other service and labor service etc. to Sichuan Changhong and its subsidiary by the Company for year of 2022 was 50 million yuan at most (tax-excluded), actually 24,241,900 yuan occurred in reporting period. 9. It is estimated that the related transaction amount resulted by selling goods and leasing business from Sichuan Changhong Electronics Holding Group Co., Ltd and its subsidiary by the Company for year of 2022 was 75 million yuan at most (tax-excluded), actually 28,842,400 yuan occurred in reporting period. 10. It is estimated that the related transaction amount resulted by purchasing goods and receiving labor services, fuel power, leasing and purchasing equipment etc. from Sichuan Changhong Electronics Holding Group Co., Ltd. and its subsidiary by the Company for year of 2022 was 260 million yuan at most (tax-excluded), actually 66,304,500 yuan occurred in reporting period. 11. It is estimated that the related transaction amount resulted by received the financing lease, commercial factoring and bill financing from Yuanxin Financial Lease Co., Ltd was 820 million yuan at most, actually 211,686,800 yuan occurred in reporting period. | |||||||||
| Reasons for major differences between trading price and market reference price (if applicable) | Not applicable | |||||||||
(ii) Related transactions by assets acquisition and sold
□Applicable √ Not applicable
There are no related transactions by assets acquisition and sold in the period(iii) Related party transaction of joint foreign investment
□ Applicable √ Not applicable
No main related transactions of mutual investment outside for the Company in reporting period.(iv) 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(v) Contact with the related finance companies
√ Applicable □ Not applicable
Deposit business
| Related party | Relationship | Maximum daily deposit limit (In 10 thousand yuan) | Deposit interest rate range | Opening balance (In 10 thousand yuan) | Amount for the Period | Ending Balance (10 thousand yuan) | |
| Total deposit amount for the Period (10 thousand yuan) | The total amount withdrawn in the Period (10 thousand yuan) | ||||||
| Sichuan Changhong Group Finance Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | 450,000.00 | 0.42%-4.805% | 338,508.69 | 1,634,044.03 | 1,642,963.96 | 329,588.76 |
Credit extension or other financial business
| Related party | Relationship | Type of business | Total amount ( 10 thousand yuan) | Actual amount ( 10 thousand yuan) |
| Sichuan Changhong Group Finance Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Other financial services - note issuance | 300,000.00 | 150,991.30 |
| Sichuan Changhong Group Finance Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Other financial services - note discounting | 300,000.00 | 84,173.89 |
Note 1: After deliberated and approved by the 27
th
session of 9
th BOD and 3
rdextraordinary shareholders general meeting of 2019 heldon 10 September 2019 and 27 September, it is agreed that the company and its related party, Changhong Huayi Compressor Co., Ltd.(hereinafter referred to as "Changhong Huayi"), respectively, will increase the capital to Changhong Finance Company by 500 millionyuan with its own funds, the total capital increase will not exceed one billion yuan. After capital increased, registered capital ofChanghong Finance Company changed to 2,693,938,365.84 yuan. The Company and Changhong Huayi holds 14.96% equity ofChonghong Finance Company respectively, and controlling shareholder of the Company -Sichuan Changhong Electric Co., Ltd and itscontrolling shareholder Sichuan Changhong Electronics Holding Group Co., Ltd holds 35.04% equity of Changhong Finance Companyrespectively.Note 2: After deliberated and approved by the 41
st session of 9
th BOD and 4
thextraordinary shareholders general meeting of 2020 heldon 14 August 2020 and 12 October, it is agreed to continue the financial services cooperation between the Company and ChanghongFinance Company and renew the “Financial Service Agreement” for a period of three years. Changhong Finance Company will providea series of financial services such as deposit and loans within scope of operation according to the requirements of Company and itssubsidiaries.(vi) Transactions between the finance company controlled by the Company and related parties
□ Applicable √ Not applicable
(vii) Other related party transactions
□ Applicable √ Not applicable
During the reporting period, the company had no other significant related transactions.XII. Significant contract and implementations(i) Entrust, contract and leasing
1. Entrust
□Applicable √ Not applicable
No entrust in Period.
2. Contract
□Applicable √ Not applicable
No contract in Period.
3. Leasing
√ Applicable □ Not applicable
Explanation of leasingOperational leasing of the Company please found more details in “investment real estate”, “fixed assets”, “Right-of-use assets”, “Lease of related party” and “Rent of related party” in Note of Financial Statement.
Gains or losses to the Company from projects that reached over 10% in total profit of the Company in reportingperiod.
□ Applicable √Not applicable
No gains or losses to the Company from projects that reached over 10% in total profit of the Company in reportingperiod.(ii) Major guarantee
√ Applicable □ Not applicable
The guarantees provided by the company to the wholly-owned and holding subsidiaries are guarantees forsupporting bank credits generated by its production and operation. The guaranty style is the guarantee. The companyand its subsidiaries did not provide guarantees to subjects outside the scope of consolidated statements. Thecompany and its holding subsidiaries had no overdue external guarantees, no external guarantees involving litigation,and no losses due to the award of the guarantee. Up to 30 June 2022, the external guarantees of the Company andsubsidiaries are as follows:
In 10 thousand yuan
| Particulars about the external guarantee of the Company and subsidiaries (Barring the guarantee for subsidiaries) | ||||||||||
| Name of the Company guaranteed | Related Announcement disclosure date | Guarantee limit | Actual date of happening | Actual guarantee limit | Guarantee type | Collateral (if applicable) | Counter guarantee (if applicable) | Guarantee term | Complete implementation or not | Guarantee for related party |
| - | - | - | - | - | - | - | - | - | - | - |
| Total approving external guarantee in report period (A1) | 0 | Total actual occurred external guarantee in report period (A2) | 0 | |||||||
| Total approved external guarantee at the end of report period ( A3) | 0 | Total actual balance of external guarantee at the end of report period (A4) | 0 | |||||||
| Guarantee between the Company and the subsidiaries | ||||||||||
| Name of the Company guaranteed | Related Announcement disclosure date | Guarantee limit | Actual date of happening | Actual guarantee limit | Guarantee type | Collateral (if applicable) | Counter guarantee (if applicable) | Guarantee term | Complete implementation or not | Guarantee for related party |
| Jiangxi Meiling Electric Appliance Co., Ltd. | Notice No.: 2020-097, 2020-098, 2020-101 and 2020-107 released on 12 December 2020 and 30 December 2020 respectively | 10,000.00 | 2021-7-8 | 10,000.00 | Joint liability guaranty | N/A | Y | 1-year | N | N |
| Notice No.: 2021-091, 2021-092, 2021-096 and 2021-109 released on 7 December 2021 and 24 | 15,000.00 | - | - | - | - | - | - | - | ||
| December 2021 respectively | ||||||||||
| Sichuan Changhong Air-conditioner Co., Ltd. | Notice No.: 2020-097, 2020-098, 2020-101 and 2020-107 released on 12 December 2020 and 30 December 2020 respectively | 100,000.00 | 2021-9-24 | 5,000.00 | Joint liability guaranty | Y | 1-year | N | N | |
| 2021-12-7 | 15,000.00 | Joint liability guaranty | Y | 1-year | N | N | ||||
| Notice No.: 2021-091, 2021-092, 2021-096 and 2021-109 released on 7 December 2021 and 24 December 2021 respectively | 100,000.00 | 2022-3-18 | 8,000.00 | Joint liability guaranty | Y | 1-year | N | N | ||
| 2022-4-18 | 30,000.00 | Joint liability guaranty | Y | 1-year | N | N | ||||
| Changhong MeilingRidian Technology Co., Ltd. | Notice No.: 2020-097, 2020-098, 2020-101 and 2020-107 released on 12 December 2020 and 30 December 2020 respectively | 30,000.00 | 2021-3-31 | 4,000.00 | Joint liability guaranty | Y | 1-year | Y | N | |
| 2021-9-22 | 3,000.00 | Joint liability guaranty | Y | 1-year | N | N | ||||
| 2021-10-19 | 4,000.00 | Joint liability guaranty | Y | 1-year | N | N | ||||
| Notice No.: 2021-091, 2021-092, 2021-096 and 2021-109 released on 7 December 2021 and 24 December 2021 respectively | 16,000.00 | 2022-6-6 | 3,000.00 | Joint liability guaranty | Y | 1-year | N | N | ||
| ZhongkeMeiling Cryogenic | Notice No.: 2020-097, 2020-098, 2020-101 and | 26,000.00 | 2021-5-24 | 5,000.00 | Joint liability guaranty | Y | 1-year | N | N |
| Technology Co., Ltd. | 2020-107 released on 12 December 2020 and 30 December 2020 respectively | 2021-9-26 | 6,000.00 | Joint liability guaranty | Y | 1-year | N | N | ||
| Notice No.: 2021-091, 2021-092, 2021-096 and 2021-109 released on 7 December 2021 and 24 December 2021 respectively | 26,000.00 | - | - | - | - | - | - | - | ||
| Zhongshan Changhong Electric Co., Ltd. | Notice No.: 2020-097, 2020-098, 2020-101 and 2020-107 released on 12 December 2020 and 30 December 2020 respectively | 140,000.00 | 2021-3-26 | 13,000.00 | Joint liability guaranty | Y | 1-year | Y | N | |
| 2021-3-29 | 18,000.00 | Joint liability guaranty | Y | 1-year | Y | N | ||||
| 2021-3-30 | 20,000.00 | Joint liability guaranty | Y | 1-year | Y | N | ||||
| 2021-4-1 | 20,000.00 | Joint liability guaranty | Y | 11.5 months | Y | N | ||||
| 2021-4-6 | 9,000.00 | Joint liability guaranty | Y | 1-year | Y | N | ||||
| 2021-5-25 | 10,000.00 | Joint liability guaranty | Y | 1-year | Y | N | ||||
| 2021-7-20 | 5,000.00 | Joint liability guaranty | Y | 1-year | N | N | ||||
| 2021-8-19 | 5,000.00 | Joint liability guaranty | Y | 1-year | N | N | ||||
| 2021-8-27 | 15,000.00 | Joint liability guaranty | Y | 1-year | N | N | ||||
| Notice No.: 2021-091, 2021-092, 2021-096 and | 140,000.00 | 2022-3-10 | 2,000.00 | Joint liability guaranty | Y | 1-year | N | N |
| 2021-109 released on 7 December 2021 and 24 December 2021 respectively | 2022-3-28 | 7,000.00 | Joint liability guaranty | Y | 1-year | N | N | |||
| 2022-4-22 | 18,000.00 | Joint liability guaranty | Y | 1-year | N | N | ||||
| 2022-5-6 | 6,000.00 | Joint liability guaranty | Y | 1-year | N | N | ||||
| 2022-6-10 | 10,000.00 | Joint liability guaranty | Y | 1-year | N | N | ||||
| 2022-6-25 | 13,000.00 | Joint liability guaranty | Y | 1-year | N | N | ||||
| Hefei Meiling Group Holdings Limited | Notice No.: 2020-097, 2020-098, 2020-101 and 2020-107 released on 12 December 2020 and 30 December 2020 respectively | 50,000.00 | 2021-3-5 | 5,000.00 | Joint liability guaranty | Y | 1-year | Y | N | |
| Notice No.: 2021-091, 2021-092, 2021-096 and 2021-109 released on 7 December 2021 and 24 December 2021 respectively | 40,000.00 | 2022-4-18 | 5,000.00 | Joint liability guaranty | Y | 1-year | N | N | ||
| Hefei Changhong Meiling Life Appliances Co., Ltd. | Notice No.: 2021-008, 2021-009, 2021-011 and 2021-034 released on 3 March 2021 and 29 April 2021respectively | 35,000.00 | 2021-7-28 | 2,000.00 | Joint liability guaranty | Y | 1-year | Y | N | |
| 2021-7-29 | 5,000.00 | Joint liability guaranty | Y | 1-year | N | N | ||||
| 2021-8-30 | 5,000.00 | Joint liability guaranty | Y | 1-year | N | N | ||||
| 2021-10-13 | 2,000.00 | Joint liability guaranty | Y | 11 months | N | N |
| 2021-12-9 | 4,000.00 | Joint liability guaranty | Y | 1-year | N | N | ||||
| Notice No.: 2021-091, 2021-092, 2021-096 and 2021-109 released on 7 December 2021 and 24 December 2021 respectively | 35,000.00 | 2022-1-26 | 3,000.00 | Joint liability guaranty | Y | 1-year | N | N | ||
| 2022-3-17 | 5,000.00 | Joint liability guaranty | Y | 1-year | N | N | ||||
| 2022-3-21 | 5,000.00 | Joint liability guaranty | Y | 5 months | N | N | ||||
| Hefei Meiling Nonferrous Metal Products Co., Ltd. | Notice No.: 2021-091, 2021-092, 2021-096 and 2021-109 released on 7 December 2021 and 24 December 2021 respectively | 3,000.00 | - | - | - | - | - | - | - | |
| Changhong RUBA Trade Company | Notice No.: 2022-036, 2022-036, 2022-037 and 2022-049 released on 18 May2022 and 30 June 2022 respectively | 5,955.93note 1 | - | - | - | - | - | - | - | |
| Total amount of approving guarantee for subsidiaries in report period (B1) | 5,955.93 | Total amount of actual occurred guarantee for subsidiaries in report period (B2) | 305,000.00 | |||||||
| Total amount of approved guarantee for subsidiaries at the end of reporting period (B3) | 721,955.93 | Total balance of actual guarantee for subsidiaries at the end of reporting period (B4) | 204,000.00 | |||||||
| Guarantee of the subsidiaries for the subsidiaries | ||||||||||
| Name of the Company guaranteed | Related Announcement disclosure date | Guarantee limit | Actual date of happening | Actual guarantee limit | Guarantee type | Collateral (if applicable) | Counter guarantee (if | Guarantee term | Complete implementation or not | Guarantee for related party |
| applicable) | ||||||||||
| Anhui Tuoxing Technology Co., Ltd. | Notice No.: 2021-013, 2021-014, 2021-021 and 2021-034 released on 31 March 2021 and 29 April 2021respectively | 6,000.00 | 2021-4-30 | 500 | Joint liability guaranty | - | 11 months | Y | N | |
| Notice No.: 2021-091, 2021-092, 2021-096 and 2021-109 released on 7 December 2021 and 24 December 2021 respectively | 5,000.00 | 2022-6-27 | 500 | Joint liability guaranty | - | 1-year | N | N | ||
| Anhui Ling'an Medical Equipment Co., Ltd. | Notice No.: 2021-091, 2021-092, 2021-096 and 2021-109 released on 7 December 2021 and 24 December 2021 respectively | 5,000.00 | - | - | - | - | - | - | - | - |
| Total amount of approving guarantee for subsidiaries in report period (C1) | 0 | Total amount of actual occurred guarantee for subsidiaries in report period (C2) | 1,000.00 | |||||||
| Total amount of approved guarantee for subsidiaries at the end of reporting period (C3) | 10,000.00 | Total balance of actual guarantee for subsidiaries at the end of reporting period (C4) | 500.00 | |||||||
| Total amount of guarantee of the Company (total of three above mentioned guarantee) | ||||||||||
| Total amount of approving guarantee in report period (A1+B1+C1) | 5,955.93 | Total amount of actual occurred guarantee in report period (A2+B2+C2) | 306,000.00 | |||||||
| Total amount of approved guarantee at the end of report period (A3+B3+C3) | 731,955.93 | Total balance of actual guarantee at the end of report period (A4+B4+C4) | 204,500.00 | |||||||
| Ratio of actual guarantee (A4+B4+C4) in net assets of the Company | 42.20% |
| Including: | |
| Amount of guarantee for shareholders, actual controller and its related parties (D) | 0 |
| The debts guarantee amount provided for the guaranteed parties whose assets-liability ratio exceed 70% directly or indirectly (E) | 173,000.00 |
| Proportion of total amount of guarantee in net assets of the Company exceed 50% (F) | 0 |
| Total amount of the aforesaid three guarantees (D+E+F) | 173,000.00 |
| Explanations on possibly bearing joint and several liquidating responsibilities for undue guarantees (if applicable) | N/A |
| Explanations on external guarantee against regulated procedures (if applicable) | N/A |
Note 1: In order to unify the currency for totaling, the exchange rate here was converted from the US dollar to the 6.6177 yuan on 30 April 2022. For details, please refer to the announcement No.2022-037 disclosed by the company.The above-mentioned guarantee objects are the wholly-owned and holding subsidiaries of the Company, and these wholly-owned and holding subsidiaries are in normal production and operation,there are no overdue loans, and the guarantee risks are controllable. As of the end of the reporting period, the effective amount of guarantee provided to the subsidiaries that approved by theCompany amounted to 7,219,559,300 yuan, actually 3,050 million yuan occurred. At the end of the reporting period, the practical guarantee balance amounted to 2,040 million yuan, accountingfor the Company’s latest net assets ratio of 42.20%. As of the end of the reporting period, the effective amount of guarantee provided to the subsidiaries from subsidiary that approved by theCompany amounted to 100 million yuan, actually 10 million yuan occurred. As of 30 June 2022, the actual guarantee balance provided to subsidiaries by subsidiary was 5 million yuan, occupied
0.10% of the latest net assets of the Company.
Explanation on guarantee with composite way: Not applicable
(iii) Trust financing
√ Applicable □ Not applicable
In 10 thousand yuan
| Type | Capital resources | Amount for entrust | Undue balance | Overdue amount | Impairment amount for overdue financial management |
| Bank financing products | Own funds | 38,000 | 16,000 | 0 | 0 |
| Total | 38,000 | 16,000 | 0 | 0 | |
Details of the single major amount, or high-risk trust investment with low security, poor fluidity
√ Applicable □ Not applicable
In 10 thousand yuan
| Trustee institution (or name of trustee) | Trustee type | Product type | Amount | Source of funds | Start date | Expiry date | Capital investment purpose | Criteria for fixing reward | Reference annual rate of return | Anticipated income (if applicable) | Actual gains/losses in period | Actual collected gains/losses in period | Amount of reserve for devaluation of withdrawing in the year(if applicable) | Whether approved by legal procedure (Y/N) | Whether has entrust finance plan in the future | Summary of the items and related query index (if applicable) |
| Hefei Branch of China Everbright Bank | Bank | Principal-guaranteed with floating income | 7,000.00 | Idle own funds | 2022-1-11 | 2022-4-11 | This product is an embedded financial derivatives of RMB structured deposits, the bank invests the raised structured deposits funds in fixed deposit of the bank, at the same time, the bank invests it in financial derivative transactions (including but not | Agreement | 1.5%/3.45%/3.55% | Not applicable | 60.38 | 60.38 | N/A | Y | Not applicable | Juchao Website(www.cninfo.com.cn) (Notice No.: 2022-003) |
| Hefei Branch of | Bank | Principal-guaranteed | 3,000.00 | Idle own funds | 2022-1-12 | 2022-4-12 | This product is a structured deposit product, the derivative product of which is linked to the morning | Agreement | 1.5%/3.21%/3.42% | Not applicable | 23.75 | 23.75 | N/A | Y | Not applicable | Juchao Website(www.cninfo.com.cn) |
| Industrial Bank | with floating income | benchmark price of Shanghai Gold Exchange on the observation date. | (Notice No.: 2022-003) | |||||||||||||
| Hefei Luyang Branch of Bank of Hangzhou Co., Ltd. | Bank | Principal-guaranteed with floating income | 1,000.00 | Idle own funds | 2022-1-14 | 2022-4-14 | The structured deposit product, the derivative products are partially linked to the spot rate published on Bloomberg page “BFIX” at 14:00 BST on the observation day | Agreement | 1.5%/3.3%/3.5% | Not applicable | 8.16 | 8.16 | N/A | Y | Not applicable | Juchao Website(www.cninfo.com.cn) (Notice No.: 2022-003) |
| Hefei Branch of Industrial Bank | Bank | Principal-guaranteed with floating income | 1,000.00 | Idle own funds | 2022-1-14 | 2022-4-14 | This product is a structured deposit product, the derivative product of which is linked to the morning benchmark price of Shanghai Gold Exchange on the observation date. | Agreement | 1.5%/3.21%/3.42% | Not applicable | 7.92 | 7.92 | N/A | Y | Not applicable | Juchao Website(www.cninfo.com.cn) (Notice No.: 2022-004) |
| Zhongshan Branch of China Guangfa Bank | Bank | Principal-guaranteed with floating | 5,000.00 | Idle own funds | 2022-1-28 | 2022-4-28 | Principal of the structured deposit is included in the unified operation and management of Guangdong Development Bank, investor’s returns from the structured deposit depend on | Agreement | 1%/3.7%/3.8% | Not applicable | 46.85 | 46.85 | N/A | Y | Not applicable | Juchao Website(www.cninfo.com.cn) (Notice No.: 2022-006) |
| Co., Ltd. | income | the performance of gold during the observation period | ||||||||||||||
| Zhongshan Branch of Bank of Communications | Bank | Principal-guaranteed with floating income | 5,000.00 | Idle own funds | 2022-3-2 | 2022-6-6 | Bank of Communications operates the funds raised by structured deposit products in a unified manner and manages them in accordance with the principle of separating basic deposits from derivative transactions. The raised principal will be included in the internal fund of Bank of Communications for unified operation and management, and will be included in the payment scope of deposit reserve fund and deposit insurance. The embedded derivative part of products will be linked to the exchange rate, interest rate, commodity and index, etc. | Agreement | 1.85%/3.2% | Not applicable | 42.08 | 42.08 | N/A | Y | Not applicable | Juchao Website(www.cninfo.com.cn) (Notice No.: 2022-009) |
| Hefei Branch of China Everbright Bank | Bank | Principal-guaranteed with floating | 8,000.00 | Idle own funds | 2022-4-15 | 2022-7-15 | This product is an embedded financial derivatives of RMB structured deposits, the bank invests the raised structured deposits funds in fixed deposit of the bank, at the same time, the bank invests it | Agreement | 1.5%/3.45%/3.55% | Not applicable | - | - | N/A | Y | Not applicable | Juchao Website(www.cninfo.com.cn) (Notice No.: 2022-027) |
| income | in financial derivative transactions (including but not | |||||||||||||||
| Hefei High Tech Zone Branch of Huaxia Bank Co., Ltd. | Bank | Principal-guaranteed with floating income | 2,000.00 | Idle own funds | 2022-5-25 | 2022-11-25 | The structured deposit product, and all or part of the interest generated by the deposit is linked to the CSI 500 | Agreement | 1.05%-3.91% | Not applicable | - | - | N/A | Y | Not applicable | Juchao Website(www.cninfo.com.cn) (Notice No.: 2022-039) |
| Hefei Branch of Bank of Hangzhou Co., Ltd. | Bank | Principal-guaranteed with floating income | 2,000.00 | Idle own funds | 2022-5-25 | 2022-8-26 | The structured deposit product, the derivative products are partially linked to the spot rate published on Bloomberg page “BFIX” at 14:00 BST on the observation day | Agreement | 1.5%/3.04%/3.24% | Not applicable | - | - | N/A | Y | Not applicable | Juchao Website(www.cninfo.com.cn) (Notice No.: 2022-039) |
| Hefei Science and Technology Sub-branch of Bank | Bank | Principal-guaranteed with floating | 2,000.00 | Idle own funds | 2022-5-27 | 2022-11-23 | Principal of the structured deposit is included in on-balance sheet accounting and managed in accordance with the deposit, and included in the payment range payment of deposit reserves and deposit insurance premiums, | Agreement | 2%/3.5%/3.55% | Not applicable | - | - | N/A | Y | Not applicable | Juchao Website(www.cninfo.com.cn) (Notice No.: 2022-039) |
| of Dongguan Co., Ltd. | income | relevant assets are capitalized and pr | ||||||||||||||
| Zhongshan Shiqi Sub-branch of China Guangfa Bank Co., Ltd. | Bank | Principal-guaranteed with floating income | 2,000.00 | Idle own funds | 2022-5-27 | 2022-11-23 | Principal of the structured deposit is included in the unified operation and management of Guangdong Development Bank, investor’s returns from the structured deposit depend on the performance of CSI 500 during the observation period | Agreement | 1.5%/3.25%/3.3% | Not applicable | - | - | N/A | Y | Not applicable | Juchao Website(www.cninfo.com.cn) (Notice No.: 2022-040) |
| Total | 38,000.00 | -- | -- | -- | -- | -- | -- | - | 189.13 | -- | - | -- | -- | -- | ||
Entrust financial expected to be unable to recover the principal or impairment might be occurred
□ Applicable √ Not applicable
(iv) Other material contracts
□ Applicable √ Not applicable
No other material contracts in the period.
XIII. Explanation on other significant events
√ Applicable □ Not applicable
1. The Profit Distribution Plan of 2021 was deliberated and approved by the 16
th session of 10
th BOD, 13
thsessionof 10thBOS and Annual General Meeting of 2021, meanwhile, independent director of the Company expressedtheir independent approval of the Plan. By focusing on the investor’s interest and long-term development needs,based on the total share capital on the registration date when the annual equity distribution plan of 2021 isimplemented, distributed 0.5 yuan (tax included) in cash for every 10 shares to whole shareholders, no bonus sharesand no share capital increased from public reserves. After distribution, total share capital of the Company remainsunchanged. The remaining accumulated retain profit of the parent company amounted to 901,324,751.30 yuan, andthe remaining retained profit will carry forward for distribution in later years.On June 17, 2022, the profit distribution plan 2021 was released by the Company and above mentioned plan wasimplemented. Found more on appointed media “Securities Times”, “China Securities Journal”, “Hong KongCommercial Daily” and Juchao Website (www.cninfo.com.cn) that the Company disclosed in the form ofannouncement (Announcement No: 2022-012, 2022-013, 2022-015, 2022-033 and 2022-046) on March 31, 2022,April 29, 2022 and June 17, 2022.
2. After deliberated and approved by the 16
th session of 10
thBOD and Annual General Meeting of 2021, it agreedthat the Company and its subsidiaries shall carry out forward foreign exchange fund trading business during theperiod from 1 July 2022 to 30 June 2023. Balance of trading not exceeding US$ 825 million (mainly including USD,AUD, EUR and other foreign exchange converted to USD), and the maximum period of delivery of a single businessshall not exceed one year. Found more on appointed media “Securities Times”, “China Securities Journal”, “HongKong Commercial Daily” and Juchao Website (www.cninfo.com.cn) that the Company disclosed in the form ofannouncement (Announcement No. 2022-012, 2022-019 and 2022-033) on 3 March 2022 and 29 April 2022.
3. Since the completion of “Repurchase Plan for Some of the Domestically Listed Foreign Shares (B Share)” onFebruary 18, 2022 and the shares were cancel dated March 2, 2022. After deliberation and approved by the 16
th
session of 10
thBOD and Annual General Meeting of 2021, agreed to reduce registered capital of the Company from1,044,597,881 yuan to 1,029,923,715 yuan, further agreed to make corresponding amendment in the Article ofAssociation with registered capital, share capital structure concerned in line with the laws. Found more on appointedmedia “Securities Times”, “China Securities Journal”, “Hong Kong Commercial Daily” and Juchao Website(www.cninfo.com.cn) that the Company disclosed in the form of announcement (Announcement No. 2022-012,2022-020 and 2022-033) on 3 March 2022 and 29 April 2022.
4. After deliberated and approved by the 16
th
session of 10
th BOD, the 13
th session of 10
th
BOD and Annual General
Meeting of 2021, its was agreed that the Company will close the project of “intelligent R&D management platformconstruction” under the “intelligent manufacturing construction project” and “intelligent R&D project”. the45,665,621.17 yuan (subject to the bank balance on the day the fund transferred) fund raised balance up to December31, 2021 from the above mentioned projects and the balance resulting from the difference between interest incomeand fees generated before the cancellation of the special account of raised fund will be permanently replenish theworking capital for daily operation and business development of the Company. Found more on appointed media“Securities Times”, “China Securities Journal”, “Hong Kong Commercial Daily” and Juchao Website(www.cninfo.com.cn) that the Company disclosed in the form of announcement (Announcement No. 2022-012,2022-013, 2022-022 and 2022-033) on 3 March 2022 and 29 April 2022.
5.After deliberated and approved by the 16
th session of 10
th
BOD. The Company invested 10.45 million yuan forthe technical transformation of front-end production line in Hefei refrigerator base. Newly increased one multi-doorshell forming line to enhance the front-end manufacturing capability in refrigerators, accomplish the cost reductionand efficiency improvement, strengthen the market competitiveness of the products to meet the production demandof refrigerator products. Found more on appointed media “Securities Times”, “China Securities Journal”, “HongKong Commercial Daily” and Juchao Website (www.cninfo.com.cn) that the Company disclosed in the form ofannouncement (Announcement No. 2022-012) on 3 March 2022.
6. The resolution of the 16
th
session of the 10
thBOD and the 2021 annual general meeting of shareholders approvedand agreed that the company and its subsidiaries apply to Industrial Bank Co., Ltd., Hefei Branch for a special creditline of bill pool of up to 400 million yuan, and applied to Ping An Bank Co., Ltd. Hefei Branch for a special creditline of bill pool of up to 300 million yuan, and applied to Jiujiang Bank Co., Ltd. Hefei Branch for a special creditline of bill pool of up to 400 million yuan. The credit period is one year, and the types of credit are mainly used forthe special business of bill pool, and endorsement for pledge is adopted. Found more on appointed media “SecuritiesTimes”, “China Securities Journal”, “Hong Kong Commercial Daily” and Juchao Website (www.cninfo.com.cn)that the Company disclosed in the form of announcement (Announcement No. 2022-012, 2022-023 and 2022-033)on 31 March 2022 and 29 April 2022.
7. On April 22, 2022, the Company received a Letter of Notification of Share Reduction from Ms. Li Xia-thesecretary of the BOD of the Company. Due to the need of Li’s own funds, within six months after 15 trading daysfrom the share reduction plan announced, Ms. Li Xia reduced 138,200 shares of the Company at most (0.0134% oftotal share capital of the Company) by way of centralized competitive bidding, shares reduction shall not exceed25% of the shares held by Ms. Li. On June 6, 2022, the Company received a Letter of Notification of Completionof the Share Reduction from Ms. Li Xia. As of June 6, 2022, Ms. Li Xia completed the reduction of 138,200 sharesaforesaid through centralized bidding trading on Shenzhen Stock Exchange. Found more on appointed media“Securities Times”, “China Securities Journal”, “Hong Kong Commercial Daily” and Juchao Website(www.cninfo.com.cn) that the Company disclosed in the form of announcement (Announcement No. 2022-032 and2022-041) on 25 April 2022 and 7 June 2022.
8.In the interest of establishing a diverse shareholder return mechanism, and to thanks the shareholders for theirconcern and support for a long period, also, allows shareholders to experience new products and services of the
Company, improve the understanding and recognition of the intrinsic value of the Company, a “Meiling ShareholderReturn Activity” was held by the Company from May 9, 2022 to May 15, 2022. Found more on appointed media“Securities Times”, “China Securities Journal”, “Hong Kong Commercial Daily” and Juchao Website(www.cninfo.com.cn) that the Company disclosed in the form of announcement (Announcement No. 2022-035) on7 May 2022.
9. After deliberated and approved by the 18
th
session of 10
thBOD and second extraordinary shareholders meetingof 2022, agreed the Company to provide a domestic guarantee for Changhong RUBA Trading Co., Ltd to apply fora loan from local banks. Guarantee amounted to $9 million at most, with a period of one year for the operatingcapital turnover of Changhong RUBA Trading Company. Meanwhile, Changhong RUBA Trading Company willprovide a corresponding counter-guarantee to the Company’s guarantee with its whole assets. Found more onappointed media “Securities Times”, “China Securities Journal”, “Hong Kong Commercial Daily” and JuchaoWebsite (www.cninfo.com.cn) that the Company disclosed in the form of announcement (Announcement No. 2022-036, No.2022-037 and No.2022-044) on 18 May 2022 and 14 June 2022.
10. After deliberated and approved by the 19
th
session of 10
thBOD and second extraordinary shareholders meetingof 2022, and according to the “Guidelines for Article of Association of the Listed Companies”(Revised in 2022)from SCRC and relevant provisions of laws and regulations as “Listing Rules of Stocks” from Shenzhen StockExchange, take the actual situation of the Company into consideration, agreed to amend some Clauses of the Articleof Association, “Rules of Procedure for the GM”, “Rules of Procedure of the BOD” and “Rules of Procedure of theBOS”. Found more on appointed media “Securities Times”, “China Securities Journal”, “Hong Kong CommercialDaily” and Juchao Website (www.cninfo.com.cn) that the Company disclosed in the form of announcement(Announcement No. 2022-042, No.2022-043 and No.2022-049) on 14 June 2022 and 30 June 2022.
11. On June 16, 2022, after the implementation of the company's share structure reform, the thirteenth batch oftradable shares with sales restrictions was lifted and listed for circulation. There were 4 holders of shares lifted fromsales restrictions this time, and the number of shares lifted from sales restrictions was 1,250,430 shares, accountingfor 0.1214% of the company's total share capital. Found more on appointed media “Securities Times”, “ChinaSecurities Journal”, “Hong Kong Commercial Daily” and Juchao Website (www.cninfo.com.cn) that the Companydisclosed in the form of announcement (Announcement No. 2022-045) on 15 June 2022.
XIV. Major event of the subsidiary
√ Applicable □ Not applicable
1. After deliberated and approved by the 16
th
session of 10
thBOD, with purpose of fulfilling the corporate socialresponsibility, the BOD agreed that subsidiary Zhongke Meiling Cryogenic Technology Co., Ltd endowed thescholarships to 11 well-known domestic universities in 10 years with 5.65 million yuan at most in total, forsupporting the development of university education and improving the brand reputation as well as the social imageand influences of the Company and its subsidiaries. Found more on appointed media “Securities Times”, “China
Securities Journal”, “Hong Kong Commercial Daily” and Juchao Website (www.cninfo.com.cn) that the Companydisclosed in the form of announcement (Announcement No. 2022-012, No.2022-021 and No.2022-033) on 31March 2022 and 29 April 2022.
2. After deliberated and approved by the 18
th session of 10
thBOD, on the basis of strategic planning and businessdevelopment needs of the controlling subsidiary- Zhongke Meiling Cryogenic Technology Co., Ltd, twins the trendof securities market development in China, agreed to proposed a public offering of shares to unspecified qualifiedinvestors under the name of Zhongke Meiling and listing on Beijing Stock Exchange to further improve itsgovernance standards, enhance the capital strength, expanding influence within the industry and heighten its overallcompetitiveness. On June 24, 2022, a “Letter of Acceptance Completion of the Coaching Work of ShenwanHongyuan Securities Underwriting Sponsor” issued by Anhui CSRC was received by Zhongke Meiling, theacceptance of coaching work in aspect of public offering of shares to unspecified qualified investors and listing onBeijing Stock Exchange was completed. On June 29, 2022, Zhongke Meiling received a “Notification of Acceptance”(GF2022060060) issued from Beijing Stock Exchange, BSE has formally accepted the application for publicoffering of shares to unspecified qualified investors and listing on BSE. On August 5, 2022, Beijing Stock Exchangeapproved the application of Zhongke Meiling to publicly issue shares to unspecified qualified investors and listthem. Found more on appointed media “Securities Times”, “China Securities Journal”, “Hong Kong CommercialDaily” and Juchao Website (www.cninfo.com.cn) that the Company disclosed in the form of announcement(Announcement No. 2022-036, No.2022-038, No.2022-048 , No.2022-050, No.2022-056, No.2022-057, No.2022-058 and No.2022-060) on 18 May 2022, 25 June and 30 June 2022.
Section VII Changes in Shares and Particular about ShareholdersI. Changes in Share Capital(i) Changes in Share Capital
Unit: Share
| Before the Change | Increase/Decrease in the Change (+, -) | After the Change | |||||||
| Amount | Proportion | New shares issued | Bonus shares | Public reserve transfer into share capital | Others | Subtotal | Amount | Proportion | |
| I. Restricted shares | 8,442,922 | 0.81% | 0 | 0 | 0 | -1,250,430 | -1,250,430 | 7,192,492 | 0.70% |
| 1. State-owned shares | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| 2. State-owned legal person’s shares | 1,766,269 | 0.17% | 0 | 0 | 0 | -625,216 | -625,216 | 1,141,053 | 0.11% |
| 3. Other domestic shares | 5,409,233 | 0.52% | 0 | 0 | 0 | -625,214 | -625,214 | 4,784,019 | 0.47% |
| Including: Domestic legal person’s shares | 3,884,551 | 0.37% | 0 | 0 | 0 | -521,012 | -521,012 | 3,363,539 | 0.33% |
| Domestic natural person’s shares | 1,524,682 | 0.15% | 0 | 0 | 0 | -104,202 | -104,202 | 1,420,480 | 0.14% |
| 4. Foreign shares | 1,267,420 | 0.12% | 0 | 0 | 0 | 0 | 0 | 1,267,420 | 0.12% |
| Including: Foreign legal person’s shares | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| Foreign natural person’s shares | 1,267,420 | 0.12% | 0 | 0 | 0 | 0 | 0 | 1,267,420 | 0.12% |
| II. Unrestricted shares | 1,036,154,959 | 99.19% | 0 | 0 | 0 | -13,423,736 | -13,423,736 | 1,022,731,223 | 99.30% |
| 1. RMB ordinary shares | 874,558,379 | 83.72% | 0 | 0 | 0 | +1,250,430 | +1,250,430 | 875,808,809 | 85.04% |
| 2. Domestically listed foreign shares | 161,596,580 | 15.47% | 0 | 0 | 0 | -14,674,166 | -14,674,166 | 146,922,414 | 14.26% |
| 3. Overseas listed foreign shares | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| 4. Others | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| III. Total shares | 1,044,597,881 | 100.00% | 0 | 0 | 0 | -14,674,166 | -14,674,166 | 1,029,923,715 | 100.00% |
1. Reasons for share changed
√ Applicable □ Not applicable
(1) In order to maintain the company's image in the capital market and effectively protect the rights and interests ofall shareholders, the company repurchased some domestically listed foreign shares (B shares) by means ofcentralized bidding transactions, and completed the cancellation procedures of the repurchased shares at the
Shenzhen Branch of China Securities Depository and Clearing Co., Ltd. on March 2, 2022, a total of 14,674,166shares of the company (B shares) were cancelled, accounting for 1.4048% of the company's total share capital beforecancellation. After the cancellation, the total share capital of the company was reduced from 1,044,597,881 sharesto 1,029,923,715 shares.
(2) On June 16, 2022, after the implementation of the company's share structure reform, the thirteenth batch oftradable shares with sales restrictions was lifted and listed for circulation. There were 4 holders of shares lifted fromsales restrictions this time, and the number of shares lifted from sales restrictions was 1,250,430 shares, accountingfor 0.1214% of the company's total share capital.
2. Approval of share changed
√ Applicable □ Not applicable
Matters concerned the company’s repurchase of some domestically listed foreign shares (B shares) and thecancellation of the repurchased shares were reviewed and approved at the 40
thsession of the ninth board of directors,the third extraordinary general meeting of shareholders in 2020, the 11
th
session of the tenth board of directors, thethird extraordinary general meeting of shareholders in 2021, the 16
thsession of the tenth board of directors, and the2021 annual general meeting of shareholders of the company which respectively held on July 27, 2020, August 18,2020, August 24, 2021, September 10, 2021, March 29, 2022 and April 29, 2022.
3. Ownership transfer of share changed
√ Applicable □ Not applicable
The company cancelled the repurchased domestically listed foreign shares (B shares) of 14,674,166 shares andcompleted the cancellation procedures of the repurchased shares at Shenzhen Branch of China Securities Depositoryand Clearing Co., Ltd. on March 2, 2022.
4. Implementation progress of shares buy-back
√ Applicable □ Not applicable
Since the first repurchase of shares on November 4, 2020, the company had cumulatively repurchased 14,674,166shares of the company (B shares) in centralized bidding transactions through the special securities account forrepurchase until February 18, 2022, accounting for 1.4048% of the company's total share capital at that time, thehighest transaction price was HKD 2.36/share, the lowest transaction price was HKD 1.87/share, the average pricewas HKD 2.22/share, and the accumulative funds used for share repurchase were HKD 32,558,454.08 (excludingtransaction fees such as stamp duty and commission). During the reporting period, the 14,674,166 domesticallylisted foreign shares (B share) repurchased by the Company have been completed the cancellation procedures atShenzhen Branch of China Securities Depository and Clearing Co., Ltd. on March 2, 2022. Approved by the 16
th
session of the tenth board of directors of the company and the Annual General Meeting of 2021, it was agreed toreduce the company's registered capital from 1,044,597,881 yuan to 1,029,923,715 yuan, and agreed to revise theArticles of Association involving registered capital, share capital structure and other relevant provisions inaccordance with the law. Found more on appointed media Securities Times, China Securities Journal, Hong Kong
Commercial Daily and Juchao Website (www.cninfo.com.cn) that the Company disclosed in the form ofannouncement (Announcement No. 2022-011, No.2022-012, No.2022-020 and No.2022-033) on 4 March 2022, 31March and 29 April 2022.
5. Implementation progress of reducing holdings of shares buy-back by centralized bidding
□ Applicable √ Not applicable
6. Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per shareattributable to common shareholders of Company in latest year and period
√ Applicable □ Not applicable
In semi-annual of 2022, the net profit attributable to owners of parent company amounted to 60,375,199.25 yuan,the equity attributable to shareholder of parent company at end of the Period was 4,845,537,338.97 yuan. Based ontotal 1,044,597,881.00 shares capital at beginning of the period, EPS amounted as 0.0578 yuan, net assets value pershare was 4.64 yuan. Based on total 1,029,923,715.00 shares capital at end of the period, EPS amounted as 0.0586yuan, net assets value per share was 4.70 yuan.
7. Other information necessary to disclose or need to disclosed under requirement from security regulators
□ Applicable √ Not applicable
(ii) Changes of lock-up stocks
√ Applicable □ Not applicable
Unit: Share
| Shareholders | Opening shares restricted | Shares released in Period | Restricted shares increased in Period | Ending shares restricted | Restricted reasons | Date for released |
| Zhang Yong | 104,202 | 104,202 | 0 | 0 | Statutory commitment of the stock reform | 2022-6-16 |
| China Life Insurance (Group) Company | 416,810 | 416,810 | 0 | 0 | Statutory commitment of the stock reform | 2022-6-16 |
| China People's Insurance Group Co., Ltd. | 625,216 | 625,216 | 0 | 0 | Statutory commitment of the stock reform | 2022-6-16 |
| Magang Community Resident Committee of Longgang Integrated Economic Development Zone, Hefei | 104,202 | 104,202 | 0 | 0 | Statutory commitment of the stock reform | 2022-6-16 |
| Total | 1,250,430 | 1,250,430 | 0 | 0 | -- | -- |
II. Securities issuance and listing
□ Applicable √ Not applicable
III. Amount of shareholders of the Company and particulars about shares holding
Unit: Share
| Total shareholders at end of the Period | 66,228 | Total preference shareholders with voting rights recovered at end of reporting period (if applicable) | 0 | |||||||
| Particulars about common shares held above 5% by shareholders or top ten common shareholders | ||||||||||
| Full name of Shareholders | Nature of shareholder | Proportion of shares held | Amount of common shares held at the end of reporting period | Changes in report period | Amount of restricted common shares held | Amount of common shares held without restriction | 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 | 0 | 248,457,724 | - | - | ||
| Hefei Industry Investment Holding (Group) Co., Ltd. | State-owned legal person | 4.64% | 47,823,401 | 0 | 0 | 47,823,401 | - | - | ||
| CHANGHONG (HK) TRADING LIMITED | Foreign legal person | 2.63% | 27,077,797 | 0 | 0 | 27,077,797 | - | - | ||
| CAO SHENGCHUN | Foreign nature person | 1.43% | 14,766,086 | 0 | 0 | 14,766,086 | - | - | ||
| Caitong Fund- Ningbo Bank-Haitong Xingtai (Anhui) Emerging Industry Investment Fund (Limited Partnership) | Domestic non-state-owned legal person | 1.04% | 10,733,452 | 0 | 0 | 10,733,452 | - | - | ||
| Zhuhai Jin Yi Assets Management Co., Ltd. - Jin Yi Phase I Private Equity Investment Fund | Domestic non-state-owned legal person | 1.00% | 10,347,600 | +7,738,500 | 0 | 10,347,600 | - | - | ||
| Xu Aiyun | Domestic nature person | 0.97% | 9,973,700 | +7,648,800 | 0 | 9,973,700 | - | - | ||
| Ma Guobin | Domestic nature person | 0.82% | 8,465,356 | -2,641,144 | 0 | 8,465,356 | - | - | ||
| Philip Securities (H.K.) Co., Ltd. | Foreign | 0.61% | 6,296,913 | 0 | 0 | 6,296,913 | - | - | ||
| legal person | ||||||||||
| Chen Qin | Domestic nature person | 0.43% | 4,462,702 | +78,814 | 0 | 4,462,702 | - | - | ||
| Strategy investors or general legal person becomes top 10 common shareholders due to rights issued (if applicable) | Not applicable | |||||||||
| 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 B-stock the Company directly held by Hong Kong Changhong, 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, Hong Kong Changhong and other top 7 shareholders （Excluding Phillip Securities (Hong Kong) Co., Ltd.); “Caitong Fund- Ningbo Bank-Haitong Xingtai (Anhui) Emerging Industry Investment Fund (Limited Partnership)” refers to the products of Caitong Fund Management Company subscribe for privately placement of 2016; The company neither knows whether there is any 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”. | |||||||||
| Description of the above shareholders in relation to delegate/entrusted voting rights and abstention from voting rights. | Not applicable | |||||||||
| Special note on the repurchase account among the top 10 shareholders (if applicable) | Not applicable | |||||||||
| Particulars about common shares held above 5% by shareholders or top ten common shareholders | ||||||||||
| Shareholders’ name | Amount of common shares held without restriction at Period-end | 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 | |||||||
| CAO SHENGCHUN | 14,766,086 | Domestically listed foreign shares | 14,766,086 | |||||||
| Caitong Fund- Ningbo Bank-Haitong Xingtai (Anhui) Emerging Industry Investment Fund (Limited Partnership) | 10,733,452 | RMB ordinary shares | 10,733,452 | |||||||
| Zhuhai Jin Yi Assets Management Co., Ltd. - Jin Yi Phase I Private Equity Investment Fund | 10,347,600 | RMB ordinary shares | 10,347,600 | |||||||
| Xu Aiyun | 9,973,700 | RMB ordinary shares | 9,973,700 | |||||||
| Ma Guobin | 8,465,356 | RMB ordinary shares | 8,465,356 | |
| Philip Securities (H.K.) Co., Ltd. | 6,296,913 | Domestically listed foreign shares | 6,296,913 | |
| Chen Qin | 4,462,702 | RMB ordinary shares | 4,462,702 | |
| Expiation on associated relationship or consistent actors within the top 10 un-lock up common shareholders and between top 10 un-lock up common shareholders and top 10 common shareholders | Found more in “Particulars about shares held above 5% by common shareholders or top 10 common shares holding” | |||
| Explanation on top ten common shareholders involving margin business (if applicable) | As of June 30, 2022, among the top 10 common shareholders, shareholder Zhuhai Jin Yi Assets Management Co., Ltd. - Jin Yi Phase I Private Equity Investment Fund held 9,535,900 shares of the Company through its customer credit guaranteed securities account and 811,700 shares through its ordinary securities account, resulting in a total of 10,347,600 shares of the Company. The shareholder-Ma Guobin holds 6,221,900 shares of the Company through customer credit trading secured account of Founder Securities Co., Ltd., and 2,243,456 shares hold through common securities account, thus 8,465,356 shares of the Company are held in total. | |||
Note 1: At end of the reporting period, the person acting in concert with controlling shareholder Sichuan Changhong-- CHANGHONG(HK) TRADING LIMITED, holds B-stock of the Company as 33,374,710 shares, among which, 6,296,913 shares are held throughPhilip Securities (H.K.) Co., Ltd. by CHANGHONG (HK) TRADING LIMITEDNote 2: In the above table, "Particulars about shares held above 5% by shareholders or top 10 shares holding" is subject to the data onstock transfer books provided by China Securities Depository and Clearing Corporation Limited Shenzhen BranchWhether the top ten ordinary shareholders of the company and the top 10 ordinary shareholders of unrestrictedconditions 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 conditionshave not made the repurchase transactions as agreed during the reporting period.IV. Changes of shares held by directors, supervisors and senior executives
√ Applicable □ Not applicable
| Name | Title | Working status | Shares held at period-begin (share) | Number of shares increased in this period (share) | Number of shares decreased in this period (share) | Shares held at period-end (share) | Number of restricted shares granted at period-begin (share) | Number of restricted shares granted at the period (share) | Number of restricted shares granted at period-end (share) |
| Wu Dinggang | Chairman | Currently in | 570,500 | 0 | 0 | 570,500 | 0 | 0 | 0 |
| office | |||||||||
| Zhong Ming | Director, President | Currently in office | 236,175 | 0 | 0 | 236,175 | 0 | 0 | 0 |
| Yong Fengshan | Director | Currently in office | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Zhao Qilin | Director | Currently in office | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Kou Huameng | Director, Deputy president | Currently in office | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Hu Zhaogui | Director, Deputy president | Currently in office | 178,050 | 0 | 0 | 178,050 | 0 | 0 | 0 |
| Hong yuanjia | Independent director | Currently in office | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Mou Wen | Independent director | Currently in office | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Zhao Gang | Independent director | Currently in office | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Shao Min | Chairman of Supervisory | Currently in office | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| He Xintan | Supervisor | Currently in office | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Huang Hong | Supervisor | Currently in office | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Ji Ge | Staff supervisor | Currently in office | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Sun Hongying | Staff supervisor | Currently in office | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Liu Hongwei | Executive deputy president | Currently in office | 1,689,893 | 0 | 0 | 1,689,893 | 0 | 0 | 0 |
| Huang Danian | Deputy president | Currently in office | 356,450 | 0 | 0 | 356,450 | 0 | 0 | 0 |
| Tang Youdao | Deputy president | Currently in office | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Pang Haitao | CFO (person in charge of finance) | Currently in office | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Li Xia | Secretary of the Board | Currently in office | 552,800 | 0 | 138,200 | 414,600 | 0 | 0 | 0 |
| Total | -- | -- | 3,583,868 | 0 | 138,200 | 3,445,668 | 0 | 0 | 0 |
V. Changes in controlling shareholders or actual controllers(i) Controlling shareholder changes in reporting period
□ Applicable √ Not applicable
Controlling shareholder stays the same in Period.(ii) Changes of actual controller in Period
□ Applicable √ Not applicable
Actual controller stays the same in Period
Section VIII Preferred Stock
□ Applicable √ Not applicable
The Company had no preferred stock in the Period
Section IX Corporate Bonds
□ Applicable √ Not applicable
Section X Financial ReportI. Audit report
Whether the semi annual report is audited
□ Yes √ No
The company's semi annual financial report has not been auditedII. Financial StatementStatement in Financial Notes are carried in RMB/CNY
1. Consolidated Balance Sheet
Prepared by CHANGHONG MEILING CO., LTD.
June 30, 2022
In RMB
| Item | June 30, 2022 | January 1, 2022 |
| Current assets: | ||
| Monetary funds | 6,183,005,095.11 | 5,938,823,396.21 |
| Settlement provisions | ||
| Capital lent | ||
| Trading financial assets | 208,184,795.23 | 17,997,086.19 |
| Derivative financial assets | ||
| Note receivable | 439,419.03 | 2,216,752.22 |
| Account receivable | 2,270,853,232.12 | 1,440,874,691.28 |
| Receivable financing | 1,380,100,294.09 | 1,808,109,301.56 |
| Accounts paid in advance | 28,724,589.92 | 29,766,797.34 |
| Insurance receivable | ||
| Reinsurance receivables | ||
| Contract reserve of reinsurance receivable | ||
| Other account receivable | 101,572,345.96 | 111,652,635.86 |
| Including: Interest receivable | ||
| Dividend receivable | ||
| Buying back the sale of financial assets | ||
| Inventories | 1,607,718,382.71 | 1,356,357,419.80 |
| Contractual assets | 2,313,522.40 | |
| Assets held for sale | ||
| Non-current asset due within one year | ||
| Other current assets | 93,325,665.28 | 124,240,934.45 |
| Total current assets | 11,876,237,341.85 | 10,830,039,014.91 |
| Non-current assets: | ||
| Loans and payments on behalf | ||
| Debt investment | 291,305,319.44 | |
| Other debt investment | ||
| Long-term account receivable | ||
| Long-term equity investment | 88,915,648.08 | 86,631,660.53 |
| Investment in other equity instrument | ||
| Other non-current financial assets | 576,200,641.50 | 581,980,440.70 |
| Investment real estate | 52,191,185.68 | 53,149,934.45 |
| Fixed assets | 2,266,504,611.74 | 2,303,122,699.92 |
| Construction in progress | 103,923,104.08 | 98,469,862.45 |
| Productive biological asset | ||
| Oil and gas asset | ||
| Right-of-use assets | 40,286,720.53 | 45,367,918.31 |
| Intangible assets | 910,035,679.68 | 953,403,100.33 |
| Expense on Research and Development | 137,625,624.69 | 87,728,990.86 |
| Goodwill | ||
| Long-term expenses to be apportioned | 362,898.05 | |
| Deferred income tax asset | 173,152,065.58 | 147,488,353.28 |
| Other non-current asset | 999,030.66 | 3,087,780.59 |
| Total non-current asset | 4,641,502,529.71 | 4,360,430,741.42 |
| Total assets | 16,517,739,871.56 | 15,190,469,756.33 |
| Current liabilities: | ||
| Short-term loans | 1,087,291,446.15 | 622,874,652.77 |
| Loan from central bank | ||
| Capital borrowed | ||
| Trading financial liability | 38,929,244.41 | 12,304,272.41 |
| Derivative financial liability | ||
| Note payable | 4,502,920,235.46 | 4,839,837,317.78 |
| Account payable | 3,832,859,258.27 | 2,299,103,796.88 |
| Accounts received in advance | ||
| Contractual liability | 351,317,980.38 | 515,004,115.23 |
| Selling financial asset of repurchase | ||
| Absorbing deposit and interbank deposit | ||
| Security trading of agency | ||
| Security sales of agency | ||
| Wage payable | 222,392,707.91 | 247,044,421.56 |
| Taxes payable | 149,559,048.33 | 141,874,861.88 |
| Other account payable | 903,778,941.60 | 751,452,768.00 |
| Including: Interest payable | ||
| Dividend payable | 19,793,050.41 | 4,753,764.56 |
| Commission charge and commission payable | ||
| Reinsurance payable | ||
| Liability held for sale | ||
| Non-current liabilities due within one year | 30,243,710.95 | 332,718,478.25 |
| Other current liabilities | 22,377,103.22 | 24,373,759.16 |
| Total current liabilities | 11,141,669,676.68 | 9,786,588,443.92 |
| Non-current liabilities: | ||
| Insurance contract reserve | ||
| Long-term loans | 158,000,000.00 | 168,000,000.00 |
| Bonds payable | ||
| Including: Preferred stock | ||
| Perpetual capital securities | ||
| Lease liability | 30,061,422.30 | 33,225,912.15 |
| Long-term account payable | 1,241,464.86 | 1,337,643.24 |
| Long-term wages payable | 8,710,896.43 | 9,828,300.06 |
| Accrual liability | 11,912,507.94 | 11,363,601.63 |
| Deferred income | 163,159,009.25 | 175,664,038.83 |
| Deferred income tax liabilities | 8,889,141.90 | 9,670,435.45 |
| Other non-current liabilities | ||
| Total non-current liabilities | 381,974,442.68 | 409,089,931.36 |
| Total liabilities | 11,523,644,119.36 | 10,195,678,375.28 |
| Owner’s equity: | ||
| Share capital | 1,029,923,715.00 | 1,044,597,881.00 |
| Other equity instrument | ||
| Including: Preferred stock | ||
| Perpetual capital securities | ||
| Capital public reserve | 2,670,335,732.53 | 2,682,829,400.26 |
| Less: Inventory shares | 26,430,571.38 | |
| Other comprehensive income | -20,842,082.96 | -20,903,270.57 |
| Reasonable reserve | ||
| Surplus public reserve | 423,111,236.90 | 423,111,236.90 |
| Provision of general risk | ||
| Retained profit | 743,008,737.50 | 734,129,724.00 |
| Total owner’ s equity attributable to parent company | 4,845,537,338.97 | 4,837,334,400.21 |
| Minority interests | 148,558,413.23 | 157,456,980.84 |
| Total owner’ s equity | 4,994,095,752.20 | 4,994,791,381.05 |
| Total liabilities and owner’ s equity | 16,517,739,871.56 | 15,190,469,756.33 |
Legal Representative: Wu DinggangPerson in charge of accounting works: Pang HaitaoPerson in charge of accounting institute: Yang Jun
2. Balance Sheet of Parent Company
In RMB
| Item | June 30, 2022 | January 1, 2022 |
| Current assets: | ||
| Monetary funds | 3,266,271,511.03 | 3,423,276,377.52 |
| Trading financial assets | 17,312,173.84 | 7,200,222.04 |
| Derivative financial assets | ||
| Note receivable | 330,000.00 | |
| Account receivable | 1,735,966,866.26 | 1,582,651,896.25 |
| Receivable financing | 966,511,549.26 | 1,484,609,403.08 |
| Accounts paid in advance | 44,903,647.89 | 48,212,105.70 |
| Other account receivable | 38,833,840.97 | 40,708,614.68 |
| Including: Interest receivable | ||
| Dividend receivable | ||
| Inventories | 364,105,226.52 | 351,523,851.67 |
| Contractual assets | 46,970.75 | |
| Assets held for sale | ||
| Non-current assets maturing within one year | ||
| Other current assets | 28,957,697.04 | |
| Total current assets | 6,433,951,786.52 | 6,967,470,167.98 |
| Non-current assets: | ||
| Debt investment | 291,305,319.44 | |
| Other debt investment | ||
| Long-term receivables | ||
| Long-term equity investments | 1,882,997,437.73 | 1,882,557,241.66 |
| Investment in other equity instrument | ||
| Other non-current financial assets | 576,200,641.50 | 581,980,440.70 |
| Investment real estate | 3,648,311.42 | 3,752,737.75 |
| Fixed assets | 1,171,285,355.31 | 1,209,058,847.63 |
| Construction in progress | 78,324,001.26 | 50,287,155.16 |
| Productive biological assets | ||
| Oil and natural gas assets | ||
| Right-of-use assets | 17,686,308.69 | 18,632,705.13 |
| Intangible assets | 454,904,294.76 | 477,739,048.08 |
| Research and development costs | 86,047,186.86 | 44,387,584.10 |
| Goodwill | ||
| Long-term deferred expenses | ||
| Deferred income tax assets | 141,353,431.80 | 125,174,589.66 |
| Other non-current assets | 299,020.00 | 638,649.57 |
| Total non-current assets | 4,704,051,308.77 | 4,394,208,999.44 |
| Total assets | 11,138,003,095.29 | 11,361,679,167.42 |
| Current liabilities: | ||
| Short-term borrowings | 1,052,171,543.37 | 612,863,194.44 |
| Trading financial liability | 14,509,627.08 | 5,766,743.33 |
| Derivative financial liability | ||
| Notes payable | 1,877,201,607.34 | 2,409,104,654.05 |
| Account payable | 1,485,308,607.13 | 1,356,405,016.24 |
| Accounts received in advance | ||
| Contractual liability | 152,733,929.04 | 238,437,143.59 |
| Wage payable | 6,018,076.56 | 42,679,625.89 |
| Taxes payable | 22,888,141.57 | 20,596,813.11 |
| Other accounts payable | 1,078,306,911.70 | 909,832,533.11 |
| Including: Interest payable | ||
| Dividend payable | 19,193,050.41 | 4,153,764.56 |
| Liability held for sale | ||
| Non-current liabilities due within one year | 22,098,167.21 | 322,202,348.59 |
| Other current liabilities | 6,982,077.34 | 6,703,328.85 |
| Total current liabilities | 5,718,218,688.34 | 5,924,591,401.20 |
| Non-current liabilities: | ||
| Long-term loans | 158,000,000.00 | 168,000,000.00 |
| Bonds payable | ||
| Including: Preferred stock | ||
| Perpetual capital securities | ||
| Lease liability | 16,523,542.32 | 17,114,473.86 |
| Long-term account payable | ||
| Long term employee compensation payable | 7,562,998.28 | 8,760,963.52 |
| Accrued liabilities | 6,135,182.74 | 7,539,547.19 |
| Deferred income | 77,695,276.53 | 82,658,197.54 |
| Deferred income tax liabilities | 5,700,451.84 | 6,131,087.92 |
| Other non-current liabilities | ||
| Total non-current liabilities | 271,617,451.71 | 290,204,270.03 |
| Total liabilities | 5,989,836,140.05 | 6,214,795,671.23 |
| Owners’ equity: | ||
| Share capital | 1,029,923,715.00 | 1,044,597,881.00 |
| Other equity instrument | ||
| Including: Preferred stock | ||
| Perpetual capital securities | ||
| Capital public reserve | 2,740,508,510.57 | 2,753,002,178.30 |
| Less: Inventory shares | 26,430,571.38 | |
| Other comprehensive income | ||
| Special reserve | ||
| Surplus reserve | 422,893,071.22 | 422,893,071.22 |
| Retained profit | 954,841,658.45 | 952,820,937.05 |
| Total owner’s equity | 5,148,166,955.24 | 5,146,883,496.19 |
| Total liabilities and owner’s equity | 11,138,003,095.29 | 11,361,679,167.42 |
3. Consolidated Profit Statement
In RMB
| Item | Semi-annual of 2022 | Semi-annual of 2021 |
| I. Total operating income | 10,224,503,551.19 | 9,602,759,345.29 |
| Including: Operating income | 10,224,503,551.19 | 9,602,759,345.29 |
| Interest income | ||
| Insurance gained | ||
| Commission charge and commission income | ||
| II. Total operating cost | 10,156,306,873.88 | 9,556,489,547.17 |
| Including: Operating cost | 9,061,080,531.06 | 8,177,231,196.17 |
| 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 | 79,701,444.29 | 61,077,730.97 |
| Sales expense | 666,066,309.98 | 984,805,928.94 |
| Administrative expense | 164,132,141.97 | 152,957,426.98 |
| R&D expense | 248,112,774.54 | 186,113,254.21 |
| Financial expense | -62,786,327.96 | -5,695,990.10 |
| Including: Interest expenses | 16,913,382.96 | 37,292,383.25 |
| Interest income | 66,581,155.37 | 62,433,816.96 |
| Add: Other income | 48,325,391.81 | 57,250,100.93 |
| Investment income (Loss is listed with “-”) | 13,816,261.75 | 52,533,705.90 |
| Including: Investment income on affiliated company and joint venture | 8,971,315.55 | -16,047,810.77 |
| The termination of income recognition for financial assets measured by amortized cost | -10,198,142.54 | |
| Exchange income (Loss is listed with “-”) | ||
| Net exposure hedging income (Loss is listed with “-”) | ||
| Income from change of fair value (Loss is listed with “-”) | 3,562,737.04 | -9,731,654.29 |
| Loss of credit impairment (Loss is listed with “-”) | -50,466,619.13 | -15,121,003.89 |
| Losses of devaluation of asset (Loss is listed with “-”) | -29,791,822.84 | -43,310,366.42 |
| Income from assets disposal (Loss is listed with “-”) | 8,358,775.10 | -208,978.90 |
| III. Operating profit (Loss is listed with “-”) | 62,001,401.04 | 87,681,601.45 |
| Add: Non-operating income | 2,910,887.79 | 5,862,320.71 |
| Less: Non-operating expense | 2,332,960.83 | 760,592.62 |
| IV. Total profit (Loss is listed with “-”) | 62,579,328.00 | 92,783,329.54 |
| Less: Income tax expense | -10,115,573.46 | 37,086,971.38 |
| V. Net profit (Net loss is listed with “-”) | 72,694,901.46 | 55,696,358.16 |
| (i) Classify by business continuity | ||
| 1.continuous operating net profit (net loss listed with ‘-”) | 72,694,901.46 | 55,696,358.16 |
| 2.termination of net profit (net loss listed with ‘-”) | ||
| (ii) Classify by ownership | ||
| 1.Net profit attributable to owner’s of parent company | 60,375,199.25 | 37,157,511.54 |
| 2.Minority shareholders’ gains and losses | 12,319,702.21 | 18,538,846.62 |
| VI. Net after-tax of other comprehensive income | 161,477.79 | -1,257,750.59 |
| Net after-tax of other comprehensive income attributable to owners of parent company | 61,187.61 | -1,271,363.35 |
| (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 | 61,187.61 | -1,271,363.35 |
| 1.Other comprehensive income under equity method that can transfer to gain/loss | -177,046.32 | |
| 2.Change of fair value of other debt investment | ||
| 3.Amount of financial assets re-classify to other comprehensive income | ||
| 4.Credit impairment provision for other debt investment | ||
| 5.Cash flow hedging reserve | ||
| 6.Translation differences arising on translation of foreign | 61,187.61 | -1,094,317.03 |
| currency financial statements | ||
| 7.Other | ||
| Net after-tax of other comprehensive income attributable to minority shareholders | 100,290.18 | 13,612.76 |
| VII. Total comprehensive income | 72,856,379.25 | 54,438,607.57 |
| Total comprehensive income attributable to owners of parent Company | 60,436,386.86 | 35,886,148.19 |
| Total comprehensive income attributable to minority shareholders | 12,419,992.39 | 18,552,459.38 |
| VIII. Earnings per share: | ||
| (i) Basic earnings per share | 0.0582 | 0.0356 |
| (ii) Diluted earnings per share | 0.0582 | 0.0356 |
As for the enterprise combined under the same control, net profit of 0 yuan achieved by the merged party beforecombination while 0 yuan achieved last periodLegal Representative: Wu DinggangPerson in charge of accounting works: Pang HaitaoPerson in charge of accounting institute: Yang Jun
4. Profit Statement of Parent Company
In RMB
| Item | Semi-annual of 2022 | Semi-annual of 2021 |
| I. Operating income | 3,276,506,161.47 | 3,975,751,904.29 |
| Less: Operating cost | 3,060,604,345.52 | 3,701,614,201.55 |
| Taxes and surcharge | 27,794,762.55 | 21,839,365.11 |
| Sales expenses | 80,728,268.23 | 99,271,533.62 |
| Administration expenses | 53,782,990.89 | 56,254,420.78 |
| R&D expenses | 108,366,509.30 | 72,054,454.73 |
| Financial expenses | -22,635,899.49 | -4,429,587.19 |
| Including: Interest expenses | 16,599,488.01 | 29,845,405.90 |
| Interest income | 36,123,851.00 | 39,962,405.83 |
| Add: Other income | 21,184,281.25 | 36,911,268.50 |
| Investment income (Loss is listed with “-”) | 47,530,171.27 | 37,411,973.74 |
| Including: Investment income on affiliated Company and joint venture | 5,509,596.07 | -15,045,065.49 |
| The termination of income recognition for financial assets measured by amortized cost (Loss is listed with “-”) | -1,663,033.71 | |
| Net exposure hedging income (Loss is listed with “-”) | ||
| Changing income of fair value (Loss is listed with “-”) | 1,369,068.05 | -21,631,996.66 |
| Loss of credit impairment (Loss is listed with “-”) | -7,829,056.61 | -528,447.83 |
| Losses of devaluation of asset (Loss is listed with “-”) | -1,325,668.27 | -3,955,719.18 |
| Income on disposal of assets (Loss is listed with “-”) | 8,344,824.89 | -82,639.64 |
| II. Operating profit (Loss is listed with “-”) | 37,138,805.05 | 77,271,954.62 |
| Add: Non-operating income | 857,194.10 | 2,299,511.52 |
| Less: Non-operating expense | 1,088,570.22 | 288,232.95 |
| III. Total Profit (Loss is listed with “-”) | 36,907,428.93 | 79,283,233.19 |
| Less: Income tax | -16,609,478.22 | 15,578,001.89 |
| IV. Net profit (Net loss is listed with “-”) | 53,516,907.15 | 63,705,231.30 |
| (i) continuous operating net profit (net loss listed with ‘-”) | 53,516,907.15 | 63,705,231.30 |
| (ii) termination of net profit (net loss listed with ‘-”) | ||
| V. Net after-tax of other comprehensive income | ||
| (i) Other comprehensive income items which will not be reclassified subsequently to profit of loss | ||
| 1.Changes of the defined benefit plans that re-measured | ||
| 2.Other comprehensive income under equity method that cannot be transfer to gain/loss | ||
| 3.Change of fair value of investment in other equity instrument | ||
| 4.Fair value change of enterprise's credit risk | ||
| 5. Other | ||
| (ii) Other comprehensive income items which will be reclassified subsequently to profit or loss | ||
| 1.Other comprehensive income under equity method that can transfer to gain/loss | ||
| 2.Change of fair value of other debt investment | ||
| 3.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 | ||
| 7.Other | ||
| VI. Total comprehensive income | 53,516,907.15 | 63,705,231.30 |
| VII. Earnings per share: | ||
| (i) Basic earnings per share | 0.0516 | 0.0610 |
| (ii) Diluted earnings per share | 0.0516 | 0.0610 |
5. Consolidated Cash Flow Statement
In RMB
| Item | Semi-annual of 2022 | Semi-annual of 2021 |
| I. Cash flows arising from operating activities: | ||
| Cash received from selling commodities and providing labor | 10,312,619,575.60 | 8,512,320,086.90 |
| services | ||
| 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 | 379,915,276.10 | 316,502,790.54 |
| Other cash received concerning operating activities | 72,807,336.47 | 79,642,427.61 |
| Subtotal of cash inflow arising from operating activities | 10,765,342,188.17 | 8,908,465,305.05 |
| Cash paid for purchasing commodities and receiving labor service | 8,685,143,427.78 | 7,728,511,418.75 |
| 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 | 859,700,605.67 | 860,117,506.67 |
| Taxes paid | 254,144,466.19 | 145,836,080.82 |
| Other cash paid concerning operating activities | 391,300,471.18 | 762,496,415.63 |
| Subtotal of cash outflow arising from operating activities | 10,190,288,970.82 | 9,496,961,421.87 |
| Net cash flows arising from operating activities | 575,053,217.35 | -588,496,116.82 |
| II. Cash flows arising from investing activities: | ||
| Cash received from recovering investment | 221,539,824.00 | 700,000,000.00 |
| Cash received from investment income | 17,907,264.72 | 6,856,855.12 |
| Net cash received from disposal of fixed, intangible and other long-term assets | 15,074,662.60 | 1,095,433.16 |
| Net cash received from disposal of subsidiaries and other units | ||
| Other cash received concerning investing activities | 65,647,218.13 | 138,387,471.00 |
| Subtotal of cash inflow from investing activities | 320,168,969.45 | 846,339,759.28 |
| Cash paid for purchasing fixed, intangible and other long-term assets | 132,916,669.27 | 125,772,890.37 |
| Cash paid for investment | 1,024,040,000.00 | 1,420,000,000.00 |
| Net increase of mortgaged loans | ||
| Net cash received from subsidiaries and other units obtained |
| Other cash paid concerning investing activities | 7,635,033.86 | 47,506.93 |
| Subtotal of cash outflow from investing activities | 1,164,591,703.13 | 1,545,820,397.30 |
| Net cash flows arising from investing activities | -844,422,733.68 | -699,480,638.02 |
| III. Cash flows arising from financing activities: | ||
| Cash received from absorbing investment | 15,000,000.00 | |
| Including: Cash received from absorbing minority shareholders’ investment by subsidiaries | 15,000,000.00 | |
| Cash received from loans | 647,040,918.37 | 934,661,487.16 |
| Other cash received concerning financing activities | 84,181.37 | 4,675,857.30 |
| Subtotal of cash inflow from financing activities | 647,125,099.74 | 954,337,344.46 |
| Cash paid for settling debts | 490,000,000.00 | 1,232,876,410.00 |
| Cash paid for dividend and profit distributing or interest paying | 76,995,651.40 | 66,120,511.52 |
| Including: Dividend and profit of minority shareholder paid by subsidiaries | 21,318,560.00 | 1,598,892.00 |
| Other cash paid concerning financing activities | 432,350,094.27 | 11,341,697.18 |
| Subtotal of cash outflow from financing activities | 999,345,745.67 | 1,310,338,618.70 |
| Net cash flows arising from financing activities | -352,220,645.93 | -356,001,274.24 |
| IV. Influence on cash and cash equivalents due to fluctuation in exchange rate | 19,041,476.23 | -14,000,285.27 |
| V. Net increase of cash and cash equivalents | -602,548,686.03 | -1,657,978,314.35 |
| Add: Balance of cash and cash equivalents at the period -begin | 5,840,194,931.57 | 6,425,529,815.10 |
| VI. Balance of cash and cash equivalents at the period -end | 5,237,646,245.54 | 4,767,551,500.75 |
6. Cash Flow Statement of Parent Company
In RMB
| Item | Semi-annual of 2022 | Semi-annual of 2021 |
| I. Cash flows arising from operating activities: | ||
| Cash received from selling commodities and providing labor services | 3,474,091,634.50 | 3,289,172,496.97 |
| Write-back of tax received | 130,797,515.16 | 161,887,225.42 |
| Other cash received concerning operating activities | 26,282,682.89 | 52,318,868.30 |
| Subtotal of cash inflow arising from operating activities | 3,631,171,832.55 | 3,503,378,590.69 |
| Cash paid for purchasing commodities and receiving labor service | 3,359,375,348.84 | 3,656,146,099.06 |
| Cash paid to/for staff and workers | 238,053,008.99 | 234,676,912.75 |
| Taxes paid | 27,088,361.68 | 26,688,550.76 |
| Other cash paid concerning operating activities | 113,679,202.41 | 313,451,006.32 |
| Subtotal of cash outflow arising from operating activities | 3,738,195,921.92 | 4,230,962,568.89 |
| Net cash flows arising from operating activities | -107,024,089.37 | -727,583,978.20 |
| II. Cash flows arising from investing activities: | ||
| Cash received from recovering investment | 1,539,824.00 | 700,000,000.00 |
| Cash received from investment income | 51,118,076.00 | 7,992,927.12 |
| Net cash received from disposal of fixed, intangible and other long-term assets | 15,055,871.00 | 867,706.09 |
| Net cash received from disposal of subsidiaries and other units | ||
| Other cash received concerning investing activities | 36,717,526.66 | 94,536,857.03 |
| Subtotal of cash inflow from investing activities | 104,431,297.66 | 803,397,490.24 |
| Cash paid for purchasing fixed, intangible and other long-term assets | 94,314,583.83 | 71,849,222.83 |
| Cash paid for investment | 440,000,000.00 | 1,455,000,000.00 |
| Net cash received from subsidiaries and other units obtained | ||
| Other cash paid concerning investing activities | 2,906,095.09 | 102,662.47 |
| Subtotal of cash outflow from investing activities | 537,220,678.92 | 1,526,951,885.30 |
| Net cash flows arising from investing activities | -432,789,381.26 | -723,554,395.06 |
| III. Cash flows arising from financing activities: | ||
| Cash received from absorbing investment | ||
| Cash received from loans | 612,040,918.37 | 924,661,487.16 |
| Other cash received concerning financing activities | 182,953,531.16 | 170,670,545.80 |
| Subtotal of cash inflow from financing activities | 794,994,449.53 | 1,095,332,032.96 |
| Cash paid for settling debts | 480,000,000.00 | 1,149,699,750.00 |
| Cash paid for dividend and profit distributing or interest paying | 55,402,489.41 | 63,099,086.76 |
| Other cash paid concerning financing activities | 46,535,119.44 | 146,209,276.30 |
| Subtotal of cash outflow from financing activities | 581,937,608.85 | 1,359,008,113.06 |
| Net cash flows arising from financing activities | 213,056,840.68 | -263,676,080.10 |
| IV. Influence on cash and cash equivalents due to fluctuation in exchange rate | 7,291,862.96 | -5,782,949.41 |
| V. Net increase of cash and cash equivalents | -319,464,766.99 | -1,720,597,402.77 |
| Add: Balance of cash and cash equivalents at the period -begin | 3,414,961,989.34 | 4,597,503,833.78 |
| VI. Balance of cash and cash equivalents at the period -end | 3,095,497,222.35 | 2,876,906,431.01 |
7. Statement of Changes in Owners’ Equity (Consolidated)
This Period
In RMB
| Item | Semi-annual of 2022 | ||||||||||||||
| Owners’ equity attributable to the parent Company | Minority interests | Total owners’ equity | |||||||||||||
| Share capital | Other equity instrument | Capital reserve | Less: Inventory shares | Other comprehensive income | Reasonable reserve | Surplus reserve | Provision of general risk | Retained profit | Other | Subtotal | |||||
| Preferred stock | Perpetual capital securities | Other | |||||||||||||
| I. The ending balance of the previous year | 1,044,597,881.00 | 2,682,829,400.26 | 26,430,571.38 | -20,903,270.57 | 423,111,236.90 | 734,129,724.00 | 4,837,334,400.21 | 157,456,980.84 | 4,994,791,381.05 | ||||||
| Add: Changes of accounting policy | |||||||||||||||
| Error correction of the last period | |||||||||||||||
| Enterprise combine under the same control | |||||||||||||||
| Other | |||||||||||||||
| II. The beginning balance of the current year | 1,044,597,881.00 | 2,682,829,400.26 | 26,430,571.38 | -20,903,270.57 | 423,111,236.90 | 734,129,724.00 | 4,837,334,400.21 | 157,456,980.84 | 4,994,791,381.05 | ||||||
| III. Increase/ Decrease in the period (Decrease is listed with “-”) | -14,674,166.00 | -12,493,667.73 | -26,430,571.38 | 61,187.61 | 8,879,013.50 | 8,202,938.76 | -8,898,567.61 | -695,628.85 | |||||||
| (i) Total comprehensive income | 61,187.61 | 60,375,199.25 | 60,436,386.86 | 12,419,992.39 | 72,856,379.25 | ||||||||||
| (ii) Owners’ devoted and decreased capital | -14,674,166.00 | -12,493,667.73 | -26,430,571.38 | -737,262.35 | -737,262.35 | ||||||||||
| 1.Common shares invested by shareholders | -14,674,166.00 | -12,493,667.73 | -26,430,571.38 | -737,262.35 | -737,262.35 | ||||||||||
| 2. Capital invested by holders of other equity instruments | |||||||||||||||
| 3. Amount reckoned into owners equity with share-based payment | |||||||||||||||
| 4. Other | |||||||||||||||
| (iii) Profit distribution | -51,496,185.75 | -51,496,185.75 | -21,318,560.00 | -72,814,745.75 | |||||||||||
| 1. Withdrawal of surplus reserves | |||||||||||||||
| 2. Withdrawal of general risk provisions | |||||||||||||||
| 3. Distribution for owners (or shareholders) | -51,496,185.75 | -51,496,185.75 | -21,318,560.00 | -72,814,745.75 | |||||||||||
| 4. Other | |||||||||||||||
| (iv) Carrying forward internal owners’ equity | |||||||||||||||
| 1. Capital reserves |
| conversed to capital (share capital) | |||||||||||||||
| 2. Surplus reserves conversed to capital (share capital) | |||||||||||||||
| 3. Remedying loss with surplus reserve | |||||||||||||||
| 4. Carry-over retained earnings from the defined benefit plans | |||||||||||||||
| 5. Carry-over retained earnings from other comprehensive income | |||||||||||||||
| 6. Other | |||||||||||||||
| (v) Reasonable reserve | |||||||||||||||
| 1. Withdrawal in the report period | |||||||||||||||
| 2. Usage in the report period | |||||||||||||||
| (vi) Others | |||||||||||||||
| IV. Balance at the end of the period | 1,029,923,715.00 | 2,670,335,732.53 | -20,842,082.96 | 423,111,236.90 | 743,008,737.50 | 4,845,537,338.97 | 148,558,413.23 | 4,994,095,752.20 |
Last Period
In RMB
| Item | Semi-annual of 2021 | ||||||||||||
| Owners’ equity attributable to the parent Company | Minority interests | Total owners’ equity | |||||||||||
| Share capital | Other equity instrument | Capital reserve | Less: Inventory | Other comprehensive | Reasonab | Surplus reserve | Provision | Retained profit | Othe | Subtotal | |||
| Preferred stock | Perpetual capital securities | Other | shares | income | le reserve | of general risk | r | ||||||||
| I. The ending balance of the previous year | 1,044,597,881.00 | 2,683,837,229.12 | 9,929,336.18 | -21,451,084.17 | 416,364,790.43 | 740,754,202.23 | 4,854,173,682.43 | 107,921,283.49 | 4,962,094,965.92 | ||||||
| Add: Changes of accounting policy | |||||||||||||||
| Error correction of the last period | |||||||||||||||
| Enterprise combine under the same control | |||||||||||||||
| Other | |||||||||||||||
| II. The beginning balance of the current year | 1,044,597,881.00 | 2,683,837,229.12 | 9,929,336.18 | -21,451,084.17 | 416,364,790.43 | 740,754,202.23 | 4,854,173,682.43 | 107,921,283.49 | 4,962,094,965.92 | ||||||
| III. Increase/ Decrease in the period (Decrease is listed with “-”) | -3,735.20 | 7,029,141.10 | -1,271,363.35 | -14,618,909.06 | -22,923,148.71 | 31,953,567.38 | 9,030,418.67 | ||||||||
| (i) Total comprehensive | -1,271,363.35 | 37,157,511.54 | 35,886,148.19 | 18,552,459.38 | 54,438,607.57 |
| income | |||||||||||||||
| (ii) Owners’ devoted and decreased capital | -3,735.20 | 7,029,141.10 | -7,032,876.30 | 15,000,000.00 | 7,967,123.70 | ||||||||||
| 1.Common shares invested by shareholders | -3,735.20 | 7,029,141.10 | -7,032,876.30 | 15,000,000.00 | 7,967,123.70 | ||||||||||
| 2. Capital invested by holders of other equity instruments | |||||||||||||||
| 3. Amount reckoned into owners equity with share-based payment | |||||||||||||||
| 4. Other | |||||||||||||||
| (iii) Profit distribution | -51,776,420.60 | -51,776,420.60 | -1,598,892.00 | -53,375,312.60 | |||||||||||
| 1. Withdrawal of surplus reserves | |||||||||||||||
| 2. Withdrawal of general risk provisions | |||||||||||||||
| 3. Distribution for owners (or shareholders) | -51,776,420.60 | -51,776,420.60 | -1,598,892.00 | -53,375,312.60 | |||||||||||
| 4. Other | |||||||||||||||
| (iv) Carrying forward internal owners’ equity | |||||||||||||||
| 1. Capital reserves conversed to capital (share capital) |
| 2. Surplus reserves conversed to capital (share capital) | |||||||||||||||
| 3. Remedying loss with surplus reserve | |||||||||||||||
| 4. Carry-over retained earnings from the defined benefit plans | |||||||||||||||
| 5. Carry-over retained earnings from other comprehensive income | |||||||||||||||
| 6. Other | |||||||||||||||
| (v) Reasonable reserve | |||||||||||||||
| 1. Withdrawal in the report period | |||||||||||||||
| 2. Usage in the report period | |||||||||||||||
| (vi) Others | |||||||||||||||
| IV. Balance at the end of the period | 1,044,597,881.00 | 2,683,833,493.92 | 16,958,477.28 | -22,722,447.52 | 416,364,790.43 | 726,135,293.17 | 4,831,250,533.72 | 139,874,850.87 | 4,971,125,384.59 |
8. Statement of Changes in Owners’ Equity (Parent Company)
This Period
In RMB
| Item | Semi-annual of 2022 | |||||||||
| Share capital | Other | Capital reserve | Less: | Other | Reasonabl | Surplus reserve | Retained profit | Othe | Total owners’ | |
| equity instrument | Inventory shares | comprehensive income | e reserve | r | equity | |||||||
| Preferred stock | Perpetual capital securities | Other | ||||||||||
| I. The ending balance of the previous year | 1,044,597,881.00 | 2,753,002,178.30 | 26,430,571.38 | 422,893,071.22 | 952,820,937.05 | 5,146,883,496.19 | ||||||
| Add: Changes of accounting policy | ||||||||||||
| Error correction of the last period | ||||||||||||
| Other | ||||||||||||
| II. The beginning balance of the current year | 1,044,597,881.00 | 2,753,002,178.30 | 26,430,571.38 | 422,893,071.22 | 952,820,937.05 | 5,146,883,496.19 | ||||||
| III. Increase/ Decrease in the period (Decrease is listed with “-”) | -14,674,166.00 | -12,493,667.73 | -26,430,571.38 | 2,020,721.40 | 1,283,459.05 | |||||||
| (i) Total comprehensive income | 53,516,907.15 | 53,516,907.15 | ||||||||||
| (ii) Owners’ devoted and decreased capital | -14,674,166.00 | -12,493,667.73 | -26,430,571.38 | -737,262.35 | ||||||||
| 1.Common shares invested by shareholders | -14,674,166.00 | -12,493,667.73 | -26,430,571.38 | -737,262.35 | ||||||||
| 2. Capital invested by holders of other equity instruments | ||||||||||||
| 3. Amount reckoned into owners equity with share-based payment | ||||||||||||
| 4. Other | ||||||||||||
| (iii) Profit distribution | -51,496,185.75 | -51,496,185.75 | ||||||||||
| 1. Withdrawal of surplus reserves | ||||||||||||
| 2. Distribution for owners (or shareholders) | -51,496,185.75 | -51,496,185.75 | ||||||||||
| 3. Other | ||||||||||||
| (iv) Carrying forward internal owners’ equity | ||||||||||||
| 1. Capital reserves conversed to capital (share capital) | ||||||||||||
| 2. Surplus reserves conversed to capital (share capital) | ||||||||||||
| 3. Remedying loss with surplus reserve | ||||||||||||
| 4. Carry-over retained earnings from the defined benefit plans | ||||||||||||
| 5. Carry-over retained earnings from other comprehensive income | ||||||||||||
| 6. Other | ||||||||||||
| (v) Reasonable reserve | ||||||||||||
| 1. Withdrawal in the report period | ||||||||||||
| 2. Usage in the report period | ||||||||||||
| (vi) Others | ||||||||||||
| IV. Balance at the end of the period | 1,029,923,715.00 | 2,740,508,510.57 | 422,893,071.22 | 954,841,658.45 | 5,148,166,955.24 |
Last period
In RMB
| Item | Semi-annual of 2021 | |||||||||||
| Share capital | Other equity instrument | Capital reserve | Less: Inventory shares | Other comprehensive income | Reasonable reserve | Surplus reserve | Retained profit | Other | Total owners’ equity | |||
| Preferred stock | Perpetual capital securities | Other | ||||||||||
| I. The ending balance of the previous year | 1,044,597,881.00 | 2,753,137,787.99 | 9,929,336.18 | 416,146,624.75 | 943,879,339.46 | 5,147,832,297.02 | ||||||
| Add: Changes of accounting policy | ||||||||||||
| Error correction of the last period | ||||||||||||
| Other | ||||||||||||
| II. The beginning balance of the current year | 1,044,597,881.00 | 2,753,137,787.99 | 9,929,336.18 | 416,146,624.75 | 943,879,339.46 | 5,147,832,297.02 | ||||||
| III. Increase/ Decrease in the period (Decrease is listed with “-”) | -3,735.20 | 7,029,141.10 | 11,928,810.70 | 4,895,934.40 | ||||||||
| (i) Total comprehensive income | 63,705,231.30 | 63,705,231.30 | ||||||||||
| (ii) Owners’ devoted and decreased capital | -3,735.20 | 7,029,141.10 | -7,032,876.30 | |||||||||
| 1.Common shares invested by shareholders | -3,735.20 | 7,029,141.10 | -7,032,876.30 | |||||||||
| 2. Capital invested by holders of other equity instruments | ||||||||||||
| 3. Amount reckoned into owners equity with share-based payment | ||||||||||||
| 4. Other | ||||||||||||
| (iii) Profit distribution | -51,776,420.60 | -51,776,420.60 | ||||||||||
| 1. Withdrawal of surplus reserves | ||||||||||||
| 2. Distribution for owners (or shareholders) | -51,776,420.60 | -51,776,420.60 | ||||||||||
| 3. Other | ||||||||||||
| (iv) Carrying forward internal owners’ equity | ||||||||||||
| 1. Capital reserves conversed to capital (share capital) | ||||||||||||
| 2. Surplus reserves conversed to capital (share capital) | ||||||||||||
| 3. Remedying loss with surplus reserve | ||||||||||||
| 4. Carry-over retained earnings from the defined benefit plans | ||||||||||||
| 5. Carry-over retained earnings from other comprehensive income | ||||||||||||
| 6. Other | ||||||||||||
| (v) Reasonable reserve | ||||||||||||
| 1. Withdrawal in the report period | ||||||||||||
| 2. Usage in the report period |
| (vi) Others | ||||||||||||
| IV. Balance at the end of the period | 1,044,597,881.00 | 2,753,134,052.79 | 16,958,477.28 | 416,146,624.75 | 955,808,150.16 | 5,152,728,231.42 |
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
I. Company profileChanghong Meiling Co., Ltd (hereinafter referred to as “the Company”) ，originally named as Hefei MeilingCo., Ltd. is an incorporated Company established and reorganized by Hefei Meiling Refrigerator GeneralFactory and approved on June 12
th1992 through [WanTiGaiHanZi (1992) No.039] issued by originalMechanism Reform Committee of Anhui Province. On August 30
th1993, through Anhui ProvincialGovernment [Wanzhenmi (1993) No.166] and re-examination of China Securities Regulatory Commission,the Company made first public issue for 30 million A shares and the Company was listed on Oct. 18
th, 1993 inShenzhen Stock Exchange. On August 13
th
, 1996, the Company was approved to issue 100 million B shares toinvestors abroad through [ZhengWeiFa (1996) No.26] issued by China Securities Regulatory Commission. TheCompany went public in Shenzhen Stock Exchange on August 28
th, 1996.
State-owned Assets Supervision & Administration Commission of the State Council approved such transferswith Document Guozi Chanquan (2007) No.253 Reply on Matters of Hefei Meiling Group Holdings LimitedTransferring Partial State-owned Ownership, Hefei Meiling Group Holdings Limited (hereinafter referred toas Meiling Group) transferred its holding 37,852,683 shares in 82,852,683 state-owned shares of the Companyto Sichuan Changhong Electronic Group Co., Ltd (hereinafter referred to as Changhong Group), other45,000,000 shares to Sichuan Changhong Electric Co. Ltd (hereinafter referred to as Sichuan Changhong). OnAug 15, 2007, the above ownership was transferred and Cleaning Corporation Limited.
On 27 August 2007, State-owned Assets Supervision & Administration Commission of Anhui ProvincialGovernment replied with Document [WGZCQH (2007) No.309] Reply on “Related Matters of Share MergerReform of Hefei Meiling Co., Ltd.”, agreed the Company’s ownership split reform plan. The Company madeconsideration that non-tradable share holders deliver 1.5 shares to A share holders per 10 shares, and originalMeiling Group made prepayment 3,360,329 shares for some non-tradable share holders as consideration forsplit reform plan.On 29 May 2008, concerning 34,359,384 state-owned shares (including 3,360,329 shares paid for other non-tradable shareholders by original Meiling Group in share reform) held by original Meiling Group, the “Noticeof Freely Transfer of Meiling Electrics Equity held by Meiling Group”[HGZCQ(2008) No. 59] issued fromState-owned Assets Supervision & Administration Commission of Hefei Municipal, agrees to transfer theabove said shares to Hefei Xingtai Holding Group Co., Ltd.(“Xingtai Holding Co.,”) for free. On 7 August2008, the “Reply of Transfer Freely of Part of the Shares of Hefei Meiling Co., Ltd. held by State-ownedshareholders” [GZCQ (2007) No. 752] issued by SASAC, agrees the above said transferring.
On October 29, 2008, Changhong Group signed Agreement on Equity Transfer of Hefei Meiling Co., Ltdwith Sichuan Changhong, in which 32,078,846 tradable A-shares with conditional subscription of the Company(accounting for 7.76% in total shares) held by Changhong Group. On 23 December 2008, “Reply of Transfer
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
Freely of Part of the Shares of Hefei Meiling Co., Ltd. held by State-owned shareholders” [GZCQ (2008) No.1413] issued by SASAC agrees the above said share transferring.
On 24 December 2010, being deliberated and approved in 32
nd Session of 6
th BOD and 2
ndExtraordinaryShareholders’ General Meeting of 2010 as well as approval of document [ZJXK (2010) No. 1715] from CSRC,totally 116,731,500 RMB ordinary shares (A stock) were offering privately to target investors with issue priceof RMB 10.28/share. Capital collecting amounting to RMB 1,199,999,820 after issuing expenses RMB22,045,500 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. Theincreasing capital has been verified by Capital Verification Report No.: ［XYZH2010CDA6021］issued fromShin Wing CPA Co., Ltd.
On 20 June 2011, the general meeting of the Company considered and approved the 2010 profit distributionplan, namely to distribute cash dividends of RMB0.5 (tax included) plus two shares for every ten shares heldby shareholders to all shareholders, based on the total share capital of 530,374,449 shares as of 31 December2010. The total share capital of the Company upon profit distribution increased to 636,449,338 shares. Thecapital increase was verified by Anhui Huashen Zhengda Accounting Firm with the verification reportWHSZDKYZ (2011) No.141.
On 26 June 2012, the general meeting of the Company considered and approved the 2011 profit distributionand capitalization of capital reserve plan, namely to distribute cash dividends of RMB0.5 (tax included) plustwo shares for every ten shares to all shareholders capitalized from capital reserve, based on the total sharecapital of 636,449,338 shares as of 31 December 2011. The total share capital of the Company uponimplementation of capitalization of capital reserve increased to 763,739,205 shares from 636,449,338 shares,and was verified by Anhui Anlian Xinda Accounting Firm with the verification report WALXDYZ (2012)No.093.
On November 18, 2015, considered and approved by the 12
th Session of the 8
thBOD of the company and thefirst extraordinary general meeting in 2016, and approved by the document of China Securities RegulatoryCommission [CSRC License No. (2016) 1396] “Reply to the approval of non-public offering of shares of HefeiMeiling Co., Ltd.”, the company has actually raised funds of 1,569,999,998.84 yuan by non-public offering ofno more than 334,042,553 new shares at face value of 1 yuan per share and with issue price no less than 4.70yuan per share, after deducting the issue costs of 29,267,276.08 yuan, the net amount of raised funds is1,540,732,722.76 yuan, the increased paid-in capital (share capital) of 280,858,676.00 yuan, increased capital
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
reserve (share premium) of 1,259,874,046.76 yuan. This capital increase has been verified by No.［XYZH2016CDA40272］capital verification report of Shine Wing Certified Public Accountants (LLP).Since the first repurchase of shares on November 4, 2020, the company had cumulatively repurchased14,674,166 shares of the company (B shares) in centralized bidding transactions through the special securitiesaccount for repurchase until February 18, 2022, and completed the cancellation procedures of the repurchasedshares at the Shenzhen Branch of China Securities Depository and Clearing Co., Ltd. on March 2, 2022, a totalof 14,674,166 shares of the company (B shares) were cancelled, accounting for 1.4048% of the company's totalshare capital before cancellation. After the cancellation, the total share capital of the company was reducedfrom 1,044,597,881 shares to 1,029,923,715 shares.Ended as June 30, 2022, total share capital of the Company amounting to 1,029,923,715 shares with ordinaryshares in full. Among which, 881,733,881 shares of A-share accounting 85.61% in total shares while B-sharewith 148,189,834 shares accounting 14.39% in total shares. Specific capital structure is as follows:
| Type of stock | Quantity | Proportion |
| (I)Restricted shares | 7,192,492 | 0.70% |
| 1. State-owned shares | ||
| 2. State-owned legal person’s shares | 1,141,053 | 0.11% |
| 3. Other domestic shares | 4,784,019 | 0.46% |
| Including: Domestic legal person’s shares | 3,363,539 | 0.33% |
| Domestic natural person’s shares | 1,420,480 | 0.14% |
| 4. Foreign shares | 1,267,420 | 0.12% |
| Including: Overseas legal person’s shares | ||
| Overseas natural person’s shares | 1,267,420 | 0.12% |
| (II)Unrestricted shares | 1,022,731,223 | 99.30% |
| 1. RMB Ordinary shares | 875,808,809 | 85.04% |
| 2. Domestically listed foreign shares | 146,922,414 | 14.27% |
| 3. Overseas listed foreign shares | ||
| 4. Others | ||
| Total shares | 1,029,923,715 | 100.00% |
The Company belongs to the manufacture of light industry, and engaged in the production and sale ofrefrigerator, freezer and air-conditioner. Unified social credit code of the Company: 9134000014918555XK;Address: No.2163, Lianhua Road, Economy and Technology Development Zone, Hefei City; LegalRepresentative: Wu Dinggang; register capital (paid-in capital): 1,029,923,715 yuan; type of company: limitedliability company(joint venture and listed of Taiwan, Hong Kong and Macao) Business Scope: R&D,manufacture and sales of cooling apparatus, air-conditioner, washing machine, water heater, kitchenware,home decoration, bathroom, lamps & lanterns, household & similar appliance, injection plastic machine of
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
computer controlling, plastic products, metalwork, packaging products and decorations as well as theinstallation and technical consultant services. Business of self-produced products, technology export andimport-export of the raw& auxiliary materials, machinery equipment, instrument and technology; departmentsales and transportation (Excluding dangerous chemicals), computer network system integration, intelligentproduct system integration, software development and technical information services, development,production, sales and service of automation equipment and electronic products, sales services of cold chaintransport vehicles and refrigerator and freezer van,development, production, sales and service of cold chaininsulation boxes, research and development, production, sales and service of cold storage, commercial freezerchain display cabinets, commercial cold chain products.(Projects that require approval in accordance with thelaw can only be operated after approval by relevant departments)
II. Scope of consolidated financial statementIn the reporting period, the consolidated financial statements of the Company cover 26 subsidiaries, includingSichuan Changhong Air-conditioner Co., Ltd, Zhongshan Changhong Electric Co., Ltd. and Zhongke MeilingCryogenic Technology Co., Ltd, and the rest. Compared with the previous year, one subsidiary Jinan XiangyouElectric Appliances Marketing Co., Ltd was decreased in the consolidation scope for liquidation. TheZhengzhou Meiling Electric Appliances Marketing Co., Ltd was decreased for mergers & acquisition.
More details can be seen in the report “VII. Changes in the scope of the merger” and “XIII. Equity in otherentities”carry in the Note
III. Basis for preparation of financial statement
1. Basis for preparation
The financial statements of the Company were prepared in accordance with the actual transactions andproceedings, and relevant regulation of Accounting Standards for Business Enterprise released by the Ministryof Finance, and was on the basis of sustainable operation, and the accounting policy and estimation stated inthe “IV. Significant Accounting Policy and Accounting Estimation”
2.Continuous operation
The Company recently has a history of profitability operation and has financial resources supporting, andprepared the financial statement on basis of going concern is reasonable.
IV. Significant Accounting Policy and accounting Estimation
1. Statement on observation of accounting standards for enterprise
The financial statement prepared by the Company applies with the requirements of Accounting Standard for
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
Business Enterprise, and reflects the financial condition, operational achievements and cash flow of theCompany effectively and completely.
2. Accounting period
The accounting period of the Company is the calendar date from 1 January to 31 December.
3. Operation cycle
Operation cycle of the Company was 12 months, and it is the standard of flow classification for assets andliabilities.
4. Standard currency for accounting
The Company takes RMB as the standard currency for accounting.
5. Accountant arrangement method of business combination under common control and not under commoncontrolAs acquirer, the Company measures the assets and liabilities acquired through business combination undercommon control at their carrying values as reflected in the consolidated financial statement of the ultimatecontroller as of the combination date. Capital reserve shall be adjusted in respect of any difference betweencarrying value of the net assets acquired and carrying value of the combination consideration paid. In casethat capital reserve is insufficient to offset, the Company would adjust retained earnings.
The acquiree’s net identifiable assets, liabilities or contingent liabilities acquired through business combinationnot under common control shall be measured at fair value as of the acquisition date. The cost of combinationrepresents the fair value of the cash or non-cash assets paid, liabilities issued or committed and equity securitiesissued by the Company as at the date of combination in consideration for acquiring the controlling power inthe acquiree, together with the sum of any directly related expenses occurred during business combination(incase of such business combination as gradually realized through various transactions, the combination costrefers to the sum of each cost of respective separate transaction). Where the cost of the combination exceedsthe acquirer’s interest in the fair value of the acquirer’s identifiable net assets acquired, the difference isrecognized as goodwill; where the cost of combination is lower than the acquirer’s interest in the fair value ofthe acquiree’s identifiable net assets, the Company shall firstly make further review on the fair values of thenet identifiable assets, liabilities or contingent liabilities acquired as well as the fair value of the non-cash assetsportion of combination consideration or the equity securities issued by the Company. In case that the Companyfinds the cost of combination is still lower than the acquirer’s interest in the fair value of the acquiree’sidentifiable net assets after such further review, the difference is recognized in non-operating income for thecurrent period when combination occurs.
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
6. Measures on Preparation of Consolidated Financial Statements
The Company shall put all the subsidiaries controlled and main body structured into consolidated financialstatements.
Any difference arising from the inconformity of accounting year or accounting policies between thesubsidiaries and the Company shall be adjusted in the consolidated financial statements.
All the material inter-company transactions, non-extraordinary items and unrealized profit within thecombination scope are written-off when preparing consolidated financial statement. Owners’ equity ofsubsidiary not attributable to parent company and current net gains and losses, other comprehensive incomeand total comprehensive income attributable to minority shareholders are recognized as non-controllinginterests, minority interests, other comprehensive income attributable to minority shareholders and totalcomprehensive income attributable to minority shareholders in consolidated financial statement respectively.
As for subsidiary acquired through business combination under common control, its operating results and cashflow will be included in consolidated financial statement since the beginning of the period when combinationoccurs. When preparing comparative consolidated financial statement, the relevant items in previous yearsfinancial statement shall be adjusted as if the reporting entity formed upon combination has been existing sincethe ultimate controller commenced relevant control.
As for equity interests of the investee under common control acquired through various transactions whicheventually formed business combination, the Company shall supplement disclosure of the accounting treatmentin 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 whicheventually formed business combination, adjustments shall be made as if the current status had been existingwhen 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 andliabilities of the acquiree into the Company’s comparative consolidated financial statement to the extent notearlier than the timing when the Company and the acquiree are all under control of the ultimate controller, andthe net assets increased due to combination shall be used to adjust relevant items under owners’ equity incomparative statement. In order to prevent double computation of the value of the acquiree’s net assets, therelevant profits and losses, other comprehensive income and change of other net assets recognized during theperiod from the date when the Company acquires original equity interests and the date when the Company andthe acquiree are all under ultimate control of the same party (whichever is later) to the date of combination inrespect of the long-term equity investment held by the Company before satisfaction of combination shall beutilized to offset the beginning retained earnings and current gains and losses in the period as the comparativefinancial statement involves, respectively.
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
As for subsidiary acquired through business combination not under common control, its operating results andcash flow will be included in consolidated financial statement since the Company obtains controlling power.When preparing consolidated financial statement, the Company shall adjust the subsidiary’s financial statementbased on the fair value of the various identifiable assets, liabilities or contingent liabilities recognized as of theacquisition date.
As for equity interests of the investee not under common control acquired through various transactions whicheventually formed business combination, the Company shall supplement disclosure of the accounting treatmentin 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 whicheventually formed business combination, when preparing consolidated financial statement, the Companywould re-measure the equity interests held in the acquiree before acquisition date at their fair value as of theacquisition date, and any difference between the fair value and carrying value is included in current investmentincome. in case that the equity interests in acquiree held by the Company before the relevant acquisition dateinvolves other comprehensive income at equity method and change of other owners’ equity (other than netgains and losses, other comprehensive income and profit distribution), then the equity interests would transferto investment gains and losses for the period which the acquisition date falls upon. The other comprehensiveincome arising from change of the net liabilities or net assets under established benefit scheme as acquiree’sre-measured such scheme is excluded.
The transaction with non-controlling interest to dispose long-term equity investment in a subsidiary withoutlosing control rights over the subsidiary, the difference between the proceeds from disposal of interests and thedecrease of the shared net assets of the subsidiary is adjusted to capital premium (share premium). In casecapital reserve is not sufficient to offset the difference, retained earnings will be adjusted.
As for disposal of part equity investment which leads to losing control over the investee, the Company wouldre-measure the remaining equity interests at their fair value as of the date when the Company loses controlover the investee when preparing consolidated financial statement. The sum of consideration received fromdisposal of equity interest and fair value of the remaining equity interest, less the net assets of the originalsubsidiary attributable to the Company calculated based on the original shareholding proportion since theacquisition date or the date then consolidation commences, is included in investment gains and losses for theperiod when control is lost, meanwhile to offset goodwill. Other comprehensive income related to equityinterest investment in original subsidiaries is transferred into current investment gains and losses upon lost ofcontrol.
If the disposal of the equity investment of a subsidiary is realized through multiple transactions until loss ofcontrol and is a package deal, the accounting treatment of these transactions should be dealt with as onetransaction of disposal of the subsidiary until loss of control. However, before the Company loses total control
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
of the subsidiary, the differences between the actual disposal price and the share of the net assets of thesubsidiary disposed of in every transaction should be recognized as other comprehensive income in theconsolidated financial statements,and transferred to profit or loss when losing control.
7. Accounting treatment for joint venture arrangement and joint controlled entityThe joint venture arrangement of the Company consists of joint controlled entity and joint venture. As forjointly controlled entity, the Company determines the assets held and liabilities assumed separately as a partyto the jointly controlled entity, recognizes such assets and liabilities according to its proportion, and recognizesrelevant income and expense separately under relevant agreement or according to its proportion. As for assettransaction relating to purchase and sales with the jointly controlled entity which does not constitute businessactivity, part of the gains and losses arising from such transaction attributable to other participators of thejointly controlled entity is only recognized.
8.Cash and cash equivalents
Cash in the cash flow statement comprises the Group’s cash on hand and deposits that can be readily withdrawn on demand.Cash equivalents are short-term,highly liquid investments held by the Group,that are readilyconvertible to known amounts of cash and which are subject to an insignificant risk of changes in value.
9. Foreign currency business and foreign currency financial statement conversion
(1) Foreign currency business
As for the foreign currency business, the Company converts the foreign currency amount into RMB amountpursuant to the spot exchange rate as of the business day. As at the balance sheet date, monetary items expressedby 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 whichis made according to capitalization rules for the exchange difference occurred from the special foreign currencyborrowings borrowed for constructing and producing the assets satisfying condition of capitalization. As forthe foreign currency non-monetary items measured by fair value, the amount is then converted into RMBaccording to the spot exchange rate as of the confirmation day for fair value. And the conversion differenceoccurred during the procedure is recorded into prevailing gains and losses directly as change of fair value. Asfor the foreign currency non-monetary items measured by historical cost, conversion is made with the spotexchange rate as of the business day, with no change in RMB amount.
(2) Conversion of foreign currency financial statement
Spot exchange rate as of the balance sheet date is adopted for conversion of assets and liabilities in foreigncurrency balance sheet; as for the items in statement of owners’ equity except for “Retained profit”, conversionis made pursuant to the spot exchange rate of business day; income and expense items in income statementthen are also converted pursuant to the spot exchange rate of transaction day. Difference arising from the
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
aforementioned conversions shall be listed separately in items of owners’ equity. Spot exchange rate as of theoccurrence date of cash flow is adopted for conversion of foreign currency cash flow. The amount of cashaffected by exchange rate movement shall be listed separately in cash flow statement.
10. Financial assets and liabilities
A financial asset or liability is recognized when the group becomes a party to a financial instrument contract.The financial assets and financial liabilities are measured at fair value on initial recognition. For the financialassets and liabilities measured by fair value and with variation reckoned into current gains/losses, the relatedtransaction expenses are directly included in current gains or losses; for other types of financial assets andliabilities, the related transaction costs are included in the initial recognition amount.
(1) Method for determining the fair value of financial assets and financial liabilitiesFair value refers to the price that a market participant can get by selling an asset or has to pay for transferringa liability in an orderly transaction that occurs on the measurement date. For a financial instrument having anactive market, the Company uses the quoted prices in the active market to determine its fair value. Quotationsin an active market refer to prices that are readily available from exchanges, brokers, industry associations,pricing services, etc., and represent the prices of market transactions that actually occur in an arm's lengthtransaction. If there is no active market for a financial instrument, the Company uses valuation techniques todetermine its fair value. Valuation techniques include reference to prices used in recent market transactions byparties familiar with the situation and through voluntary trade, and reference to current fair values of otherfinancial instruments that are substantially identical, discounted cash flow methods, and option pricing models.
(2) Category and measurement on financial assets
The group divided the financial assets as the follow while initially recognized: the financial assets measured atamortized cost; the financial assets measured at fair value and whose changes are included in othercomprehensive income; and the financial assets measured by fair value and with variation reckoned into currentgains/losses. The classification of financial assets depends on the business model that the Group's enterprisesmanage the financial assets and the cash flow characteristics of the financial assets.
1) The financial assets measured at amortized cost
Financial assets are classified as financial assets measured at amortized cost when they also meet the followingconditions: The group's business model for managing the financial assets is to collect contractual cash flows;the contractual terms of the financial assets stipulate that cash flow generated on a specific date is only paidfor the principal and interest based on the outstanding principal amount. For such financial assets, the effectiveinterest method is used for subsequent measurement according to the amortized cost, and the gains or lossesarising from amortization or impairment are included in current profits and losses. Such financial assets mainlyinclude monetary funds, notes receivable, accounts receivable, other receivables, debt investment and long-
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
term receivables, and so on. The Group lists the debt investment and long-term receivables due within one year(including one year) from the balance sheet date as non-current assets due within one year, and lists the debtinvestment with time limit within one year (including one year) when acquired as other current assets.
2) Financial assets measured at fair value and whose changes are included in other comprehensive incomeFinancial assets are classified as financial assets measured at fair value and whose changes are included inother comprehensive income when they also meet the following conditions: The Group's business model formanaging the financial assets is targeted at both the collection of contractual cash flows and the sale of financialassets; the contractual terms of the financial asset stipulate that the cash flow generated on a specific date isonly the payment of the principal and the interest based on the outstanding principal amount. For such financialassets, fair value is used for subsequent measurement. The discount or premium is amortized by using theeffective interest method and is recognized as interest income or expenses. Except the impairment losses andthe exchange differences of foreign currency monetary financial assets are recognized as the current profitsand losses, the changes in the fair value of such financial assets are recognized as other comprehensive incomeuntil the financial assets are derecognized, the accumulated gains or losses are transferred to the current profitsand losses. Interest income related to such financial assets is included in the current profit and loss. Suchfinancial assets are listed as other debt investments, other debt investments due within one year (including oneyear) from the balance sheet date are listed as non-current assets due within one year; and other debtinvestments with time limit within one year (including one year) when acquired are listed as other currentassets.
3) Financial assets measured at fair value and whose changes are included in current gains/lossesFinancial assets except for the above-mentioned financial assets measured at amortized cost and financialassets measured at fair value and whose changes are included in other comprehensive income are classified asfinancial assets measured at fair value and whose changes are included in current profits and losses, whichadopt fair value for subsequent measurement and all changes in fair value are included in current profits andlosses. The Group classifies non-trading equity instruments as financial assets measured at fair value and whosechanges are included in current profits and losses. Such financial assets are presented as trading financial assets,and those expire after more than one year and are expected to be held for more than one year are presented asother non-current financial assets.
(3) Devaluation of financial instrument
On the basis of expected credit losses, the Group performs impairment treatment on financial assets measuredat amortized cost and financial assets measured at fair value and whose changes are included in othercomprehensive income and recognize the provisions for loss.Credit loss refers to the difference between all contractual cash flows that the Company discounts at the originalactual interest rate and are receivable in accordance with contract and all cash flows expected to be received,
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
that is, the present value of all cash shortages. Among them, for the purchase or source of financial assets thathave suffered credit impairment, the Company discounts the financial assets at the actual interest rate adjustedby credit.The Group considers all reasonable and evidenced information, including forward-looking information, basedon credit risk characteristics. When assessing the expected credit losses of receivables, they are classifiedaccording to the specific credit risk characteristics as follows:
1) For receivables and contractual assets and lease receivables (including significant financing componentsand not including significant financing components), the Group measures the provisions for loss based on theamount of expected credit losses equivalent to the entire duration.
①Evaluate expected credit losses based on individual items: credit notes receivable (including accepted lettersof credit) of financial institutions in notes receivable and accounts receivable, and related party payments(related parties under the same control and significant related parties); dividends receivable, interest receivable,reserve funds, investment loans, cash deposits (including warranty), government grants (including dismantlingsubsidies) in other receivables, and receivables with significant financing components (i.e. long-termreceivables);
②Evaluate expected credit losses based on customer credit characteristics and ageing combinations: inaddition to evaluating expected credit losses based on individual items, the Group evaluates the expected creditlosses of notes receivable and accounts receivable and other receivables financial instruments based oncustomer credit characteristics and ageing combinations.The Group considers all reasonable and evidenced information, including forward-looking information, whenassessing expected credit losses. When there is objective evidence that its customer credit characteristics andageing combination cannot reasonably reflect its expected credit loss, the current value of the expected futurecash flow is measured by a single item, and the cash flow shortage is directly written down the book balanceof the financial asset.
2) Assess the expected credit losses on a case-by-case basis for other assets to which the financial instrumentsare impaired, such as the loan commitments and financial guarantee contracts that are not measured at fairvalue through profit or loss, financial assets measured at fair value and whose changes are recognized in othercomprehensive income; other financial assets measured at amortized cost (such as other current assets, othernon-current financial assets, etc.).
(4) Reorganization basis and measure method for transfer of financial assets
The financial assets meet one of following requirements will be terminated recognition: ① The contract rightsof collecting cash flow of the financial assets is terminated; ②The financial assets has already been transferred,
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
and the Company has transferred almost all risks and remunerations of financial assets ownership to thetransferee; ③The financial assets has been transferred, even though the Company has neither transferred norkept almost all risks and remunerations of financial assets ownership, the Company has given up controllingthe 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 itcontinues to involve into the transferred financial assets and confirm the relevant liabilities accordingly. Theextent of continuing involvement in the transferred financial assets refers to the level of risk arising from thechanges in financial assets value faced by the enterprise.
If the entire transfer of financial assets satisfies the demand for derecognition, reckon the balance between thebook value of the transferred financial assets and the sum of consideration received from transfer andfluctuation accumulated amount of fair value formerly reckoned in other consolidated income in the currentprofits and losses.
If part transfer of financial assets satisfies the demand for derecognition, apportion the integral book value ofthe transferred financial assets between the derecognized parts and the parts not yet derecognized according toeach relative fair value, and reckon the balance between the sum of consideration received from transfer andfluctuation accumulated amount of fair value formerly reckoned in other consolidated income that should beapportioned to the derecognized parts and the apportioned aforementioned carrying amounts in the currentprofits and losses.When the Group sells financial assets adopting the mode of recourse, or endorses and transfers its financialassets, it is necessary to ensure whether almost all the risks and rewards of ownership of the financial assetshave been transferred. If almost all the risks and rewards of ownership of the financial assets have beentransferred to the transferee, the financial assets shall be derecognized; if almost all the risks and rewards ofownership of the financial assets are retained, the financial assets shall not be derecognized; if almost all therisks and rewards of ownership of the financial assets are neither transferred nor retained, continue to judgewhether the company retains control over the assets, and conduct accounting treatment according to theprinciples described in the preceding paragraphs.
(5) Category and measurement of financial liability
Financial liability is classified into financial liability measured by fair value and with variation reckoned intocurrent gains/losses and other financial liability at initially measurement. Financial liability shall be initiallyrecognized and measured at fair value. As for the financial liability measured by fair value and with variationreckoned into current gains/losses, relevant trading costs are directly reckoned into current gains/losses whileother financial liability shall be reckoned into the initial amount recognized.
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
① the financial liability measured by fair value and with variation reckoned into current gains/lossesThe conditions to be classified as trading financial liabilities and as financial liabilities designated to bemeasured at fair value and whose changes are included in current profit or loss at the initial recognition areconsistent with the conditions to be classified as trading financial assets and as financial assets designated tobe measured at fair value and whose changes are included in current profit or loss at the initial recognition.Financial liabilities measured at fair value and whose changes are included in current profit or loss aresubsequently measured at fair value, and the gain or loss arising from changes in fair value and the dividendsand interest expense related to these financial liabilities are included in current profit or loss.
② Other financial liability
It must go through the delivery of the derivative financial liabilities settled by the equity instrument to link tothe equity instruments that are not quoted in an active market and whose fair value cannot be reliably measured,and the subsequent measurement is carried out in accordance with the cost. Other financial liabilities aresubsequently measured at amortized cost by using the effective interest method. The gain or loss arising fromderecognition or amortization is included in current profit or loss.
③Financial guarantee contract
The financial guarantee contract of a financial liability which is not designated to be measured at fair valuethrough profit or loss is initially recognized at fair value, and its subsequent measurement is carried out by thehigher one between the amount confirmed in accordance with the Accounting Standards for BusinessEnterprises No. 13 — Contingencies after initial recognition and the balance after deducting the accumulatedamortization amount determined in accordance with the principle of Accounting Standards for BusinessEnterprises No. 14—Revenue from the initial recognition amount.
(6) Termination of recognition of financial liability
The financial liability or part of it can only be terminated for recognized when all or part of the currentobligation of the financial liability has been discharged. The Group (debtor) and the creditor sign an agreementto replace the existing financial liabilities with new financial liabilities, and if the contract terms of the newfinancial liabilities are substantially different from the existing financial liabilities, terminated forrecognizedthe existing financial liabilities and at the same time recognize the new financial liabilities. If thefinancial liability is terminated for recognized in whole or in part, the difference between the carrying amountof the part that terminated for recognized and the consideration paid (including the transferred non-cash assetsor the assumed new financial liabilities) is included in current profits and losses.
(7) Off-set between the financial assets and liabilities
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
When the Company has a legal right to offset a recognized financial asset and a financial liability and suchlegal right is currently enforceable, and the Company plans to settle the financial asset on a net basis or torealize the financial asset and settle the financial liability simultaneously, the financial asset and the financialliability are presented in the balance sheet at their respective offsetting amounts. In addition, the financial assetsand financial liabilities are presented in the balance sheet separately, and are not offset against each other.
(8) Derivatives and embedded derivatives
Derivatives are initially measured at fair value on the signing date of the relevant contract, and are subsequentlymeasured at fair value. Except for derivatives that are designated as hedging instruments and are highlyeffective in hedging, the gains or losses arising from changes in fair value will be determined based on thenature of the hedging relationship in accordance with the requirements of the hedge accounting and be includedin the period of profit and loss, other changes in fair value of derivatives are included in current profits andlosses. For a hybrid instrument that includes an embedded derivative, if it is not designated as a financial assetor financial liability measured at fair value and whose changes are included in current profit or loss, theembedded derivative does not have a close relationship with the main contract in terms of economiccharacteristics and risks, and as with embedded derivatives, if the tools existing separately conform to thedefinition of the derivatives, the embedded derivatives are split from the hybrid instruments and are treated asseparate derivative financial instruments. If it is not possible to measure the embedded derivative separately atthe time of acquisition or subsequent balance sheet date, the whole hybrid instrument is designated as afinancial asset or financial liability measured at fair value and whose changes are included in current profitsand losses.
(9) Equity instrument
The equity instrument is the contract to prove the holding of the surplus stock of the assets with the deductionof all liabilities in the Group. The Company issues (including refinancing), repurchases, sells or cancels equityinstruments as movement of equity.No fair value change of equity instrument would be recognized by theCompany.Transaction costs associated with equity transactions are deducted from equity. The Group's variousdistributions to equity instrument holders (excluding stock dividends) reduce shareholders' equity.
11. Inventory
Inventories of the Company principally include raw materials, stock goods; work in process, self-made semi-finished product, materials consigned to precede, low-value consumption goods, goods in transit, goods inprocess, mould and contract performance costs.
Perpetual inventory system is applicable to inventories. For daily calculation, standard price is adopted for rawmaterials, low-value consumption goods and stock goods. Switch-back cost of the current month is adjusted
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
by distribution price difference at the end of the month, the dispatched goods will share the cost differences ofinventory while in settlement the business income; and low-value consumption goods is carried forward atonce when being applied for use and the mould shall be amortized within one year after receipt.Inventory at period-end is valued by the Lower-of-value between the cost and net realizable value.Theprovision for inventory depreciation shall be drawn from the difference between the book cost of a singleinventory item and its net realizable value, and the provision for inventory depreciation shall be recorded intothe current profit and loss.
12. Contract assets
(1) Confirmation methods and standards of contract assets
Contract assets refer to the right of the Company to receive consideration after transferring goods to customers,and this right depends on factors other than the passage of time. If the Company sells two clearlydistinguishable commodities to a customer and has the right to receive payment because one of thecommodities has been delivered, but the payment is also dependent on the delivery of the other commodity,the Company shall take the right to receive payment as a contract asset.
(2) Determination method and accounting treatment method of expected credit loss of contract assetsFor the determination method for expected credit loss of contract assets, please refer to the above-mentioned
10. (3) Accounting treatment methods for financial instrument impairment. The Company calculates theexpected credit loss of contract assets on the balance sheet date, if the expected credit loss is greater than thebook value of provision for impairment of contract assets, the Company shall recognize the difference as animpairment loss, debiting the "asset impairment loss" and crediting the "contract asset impairment provision".On the contrary, the Company shall recognize the difference as an impairment gain and keep the oppositeaccounting records.If the Company actually incurs credit losses and determines that the relevant contract assets cannot berecovered, for those approved to be written off, debit the "contract asset impairment reserve" and credit the"contracted asset" based on the approved write-off amount. If the written-off amount is greater than theprovision for loss that has been withdrawn, the "asset impairment loss" is debited based on the difference.
13. Contract cost
(1) The method of determining the amount of assets related to the contract cost
The Company’s assets related to contract costs include contract performance cost and contract acquisition cost.The contract performance cost is the cost incurred by the Company for the performance of the contract, thosethat do not fall within the scope of other accounting standards and meet the following conditions at the same
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
time are recognized as as an asset as the contract performance cost: the cost is directly related to a current orexpected contract, including direct labor, direct materials, manufacturing expenses (or similar expenses), costsclarified to be borne by the customer, and other costs incurred solely due to the contract; this cost increases theCompany's future resources for fulfilling the contract's performance obligations; this cost is expected to berecovered.Contract acquisition cost is the incremental cost incurred by the Company to obtain the contract, those that areexpected to be recovered are recognized as the contract acquisition cost as an asset; if the asset amortizationperiod does not exceed one year, it shall be included in the current profit and loss when it occurs. Incrementalcost refers to the cost (such as sales commission, etc.) that will not incur if the Company doesn’t obtain thecontract. The Company’s expenses (such as travel expenses incurred regardless of whether the contract isobtained) incurred for obtaining the contract other than the incremental costs expected to be recovered areincluded in the current profits and losses when they are incurred, except those are clarified to be borne by thecustomer.
(2) Amortization of assets related to contract costs
The Company’s assets related to contract costs are amortized on the same basis as the recognition of commodityincome related to the asset and included in the current profit and loss.
(3) Impairment of assets related to contract costs
When the Company determines the impairment loss of assets related to the contract cost, it first determines theimpairment loss of other assets related to the contract that are confirmed in accordance with other relevantaccounting standards for business enterprises; then based on the difference between the book value of whichis higher than the remaining consideration that the Company is expected to obtain due to the transfer of thecommodity related to the asset and the estimated cost of transferring the related commodity, the excess shallbe provided for impairment and recognized as an asset impairment loss.If the depreciation factors of the previous period changed later, causing the aforementioned difference to behigher than the book value of the asset, the original provision for asset impairment shall be reversed andincluded in the current profit and loss, but the book value of the asset after the reversal shall not exceed thebook value of the asset on the reversal date under the assumption that no impairment provision is made.
14.Long-term equity investment
Long-term equity investment of the Company is mainly about investment in subsidiary, investment inassociates and investment in joint-ventures.For long-term equity investments acquired through business combination under common control, the initialinvestment cost shall be the acquirer’s share of the carrying amount of net assets of the acquiree as of thecombination date as reflected in the consolidated financial statement of the ultimate controller. If the carrying
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
amount of net assets of the acquiree as of the combination date is negative, the investment cost of long-termequity investment shall be zero. For long-term equity investment acquired through business combination notunder common control, the initial investment cost shall be the combination cost.
Excluding the long-term equity investment acquired through business combination, there is also a king of long-term equity investment acquired through cash payment, for whichthe actual payment for the purchase shall beinvestment cost; If Long-term equity investments are acquired by issuing equity securities, fair value of issuingequity 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 equityinvestment which is acquired through debt reorganization and non-monetary assets exchange, regulations ofrelevant accounting standards shall be referred to for confirming investment cost.The Company adopts cost method for investment in subsidiaries, makes calculation for investments in joint-ventures and associates by equity method.
When calculated by cost method, long-term equity investment is priced according to its investment cost, andcost of the investment is adjusted when making additional investment or writing off investment; Whencalculated by equity method, current investment gains and losses represent the proportion of the net gains andlosses realized by the invested unit in current year attributable to or undertaken by the investor. When theCompany is believed to enjoy proportion of net gains and losses of invested unit, gains and losses attributableto the Company according to its shareholding ratio is to computer out according to the accounting policy andaccounting period of the Company, on the basis of the fair value of various recognizable assets of the investedunit as at the date of obtaining of the investment, after offset of gains and losses arising from internaltransactions with associates and joint-ventures, and finally to make confirmation after adjustment of net profitof the invested unit. Confirmation on gains and losses from the long-term equity investment in associates andjoint-ventures held by the Company prior to the first execution day, could only stand up with the precedentcondition that debit balance of equity investment straightly amortized according to its original remaining termhas 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 equityinterest investment, the remaining equity interest shall be calculated according to Accounting Standards forBusiness Enterprise No.22-Recognition and Measurement of Financial Instrument. Difference between the fairvalue of the remaining equity interest as of the date when loss of joint control or significant influence and thecarrying value is included in current gains and losses. Other comprehensive income recognized in respect ofthe original equity interest investment under equity method should be treated according to the same basis whichthe investee adopts to directly dispose the relevant assets or liabilities when ceasing adoption of equity methodcalculation; and also switches to cost method for calculating the long-term equity investments which entitlesthe Company to have conduct control over the invested units due to its additional investments; and switches to
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
equity method for calculating the long-term equity investments which entitles the Company to conductcommon control or significant influence, while no control over the invested units due to its additionalinvestments, or the long-term equity investments which entitles the Company with no control over the investedunits any longer while with common control or significant influence.
When disposing long-term equity investment, the balance between it carrying value and effective price forobtaining shall be recorded into current investment income. When disposing long-term equity investmentwhich is calculated by equity method, the proportion originally recorded in owners’ equity shall be transferredto current investment income according to relevant ratio, except for that other movements of owners’ equityexcluding net gains and losses of the invested units shall be recorded into owners’ equity.
15. Investment real estate
The investment real estate of the Company includes leased houses and buildings, and is accounted value byits cost. Cost of purchased-in investment real estate consists of payment for purchase, relevant taxes andother expenditure which is attributable to the assets directly; while cost of self-built investment real estate isformed with all necessary expenditures occurred before construction completion of the assets arriving at theestimated utilization state.
Consequent measurement of investment estate shall be measured by cost method. Depreciation is providedwith average service life method pursuant to the predicted service life and net rate of salvage value. Thepredicted service life and net rate of salvage value and annual depreciation are listed as follows:
| Category | Depreciation term(Year) | Predicted rate of salvage value (%) | Depreciation rate per annual (%) |
| House and buildings | 30-40 years | 4%-5% | 2.375%-3.20% |
When investment real estate turns to be used by holders, it shall switch to fixed assets or intangible assetscommencing from the date of such turning. And when self-used real estate turns to be leased out for rental oradditional capital, the fixed assets or intangible assets shall switch to investment real estate commencing fromthe date of such turning. In situation of switch, the carrying value before the switch shall be deemed as thecredit value after the switch.
When investment real estate is disposed, or out of utilization forever and no economic benefit would bepredicted to obtain through the disposal, the Company shall terminate recognition of such investment realestate. The amount of income from disposal, transfer, discarding as scrap or damage of investment real estateafter deducting the asset’ s carrying value and relevant taxation shall be written into current gains and losses.
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
16.Fixed assets
Fixed assets of the Company are tangible assets that are also held for the production of goods, provision ofservices, rental or management of operations, have a useful life of more than one year and have a unit valueof more than 2,000 yuan.
Their credit value is determined on the basis of the cost taken for obtaining them. Of which, cost of purchased-in fixed assets include bidding price and import duty and relevant taxes, and other expenditure which occursbefore the fixed assets arrive at the state of predicted utilization and which could be directly attributable to theassets; while cost of self-built fixed asset is formed with all necessary expenditures occurred beforeconstruction completion of the assets arriving at the estimated utilization state; credit value of the fixed assetsinjected by investors is determined based on the agreed value of investment contracts or agreements, while asfor the agreed value of investment contracts or agreements which is not fair, it shall take its fair value as creditvalue; and for fixed assets which are leased in through finance leasing, credit value is the lower of fair valueof 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 thosemeeting requirements for recognization of fixed assets, they would be accounted as fixed asset cost; and forthe part which is replaced, recognization of its carrying value shall cease; for those not meeting requirementsfor recognization of fixed assets, they shall be accounted in current gains and losses as long as they occur.When fixed asset is disposed, or no economic benefit would be predicted to obtain through utilization ordisposal of the asset, the Company shall terminate recognization of such fixed asset. The amount of incomefrom disposal, transfer, discarding as scrap or damage of fixed asset after deducting the asset’ s carrying valueand relevant taxation shall be written into current gains and losses.
The Company withdraws depreciation for all fixed assets except for those which have been fully depreciatedwhile continuing to use. It adopts average service life method for withdrawing depreciation which is treatedrespectively as cost or current expense of relevant assets according to purpose of use. The depreciation term,predicted rate of salvage value and depreciation rate applied to fixed assets of the Company are as follows:
| No. | Category | Depreciation term | Predicted rate of salvage value | Depreciation rate per year |
| 1 | House and buildings | 30-40 years | 4%-5% | 2.375%-3.20% |
| 2 | Machinery equipment | 10-14 years | 4%-5% | 6.786%-9.60% |
| 3 | Transport equipment | 5-12 years | 4%-5% | 7.92%-19.20% |
| 4 | Other equipment | 8-12 years | 4%-5% | 7.92%-12.00% |
End of each year, the Company makes re-examination on predicted service life, predicted rate of salvagevalue and depreciation method at each year-end. Any change will be treated as accounting estimation change.
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
17. Construction in progress
On the day when the construction in progress reaches the expected usable state, it will be carried forward tofixed assets according to the estimated value based on the construction budget, cost or actual construction cost,and depreciation will be accrued from the next month, and the difference in the original value of fixed assetsshall be adjusted after the completion of the final accounting procedures.
18. Borrowing expense
For the incurred borrowing expense that can be directly attributable to fixed assets, investment real estate, andinventory which require more than one year of purchase, construction or production activities to reach theintended usable or saleable state, the capitalization begins when the asset expenditure has occurred, theborrowing expense have occurred, and the acquisition, construction or production activities necessary to makethe asset reach the intended usable or saleable state have begun; when the acquisition, construction orproduction of assets that meet the capitalization conditions reaches the intended usable or saleable state, stopthe capitalization, the borrowing expense incurred thereafter are included in the current profit and loss. If anasset that meets the capitalization conditions is abnormally interrupted during the acquisition, construction orproduction process, and the interruption lasts for more than 3 months, the capitalization of borrowing expenseshall be suspended until the acquisition, construction or production activities of the asset restart.
Capitalization shall be exercised for interest expense actually occurred from special borrowings in currentperiod after deduction of the interest income arising from unutilized borrowing capital which is saved in banksor deduction of investment income obtained from temporary investment; For recognization of capitalizedamount of common borrowing,it equals to the weighted average of the assets whose accumulated expense orcapital 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.
19. Right-of-use assets
When the Company becomes the lessee of the lease contract and is entitled to receive almost all the economicbenefits arising from the use of the identified assets during the use period and is entitled to lead the use of theidentified assets during the use period, the right-of-use assets shall be recognized based on the sum of thepresent value of lease liabilities, the prepaid rents and the initial direct expenses, and depreciation and interestexpenses shall be recognized respectively.When the Company becomes the lessee of the lease contract, for short-term leases with no purchase optionwithin one year and lease contracts with a value of less than 40,000 yuan (excluding the sublease or expectedsublease of assets), we choose to follow the simplified treatment and record into the related asset cost of orcurrent profit and loss in accordance with the straight-line method during the lease period.
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
20. Intangible assets
The Company’s intangible assets include land use rights, trademark rights and non-proprietary technology,which are measured at actual cost at the time of acquisition, of which, acquired intangible assets are stated atactual cost based on the price actually paid and related other expenditure; the actual cost of an intangible assetinvested by an investor is determined at the value agreed in the investment contract or agreement, except wherethe agreed value in the contract or agreement is not fair, in which case the actual cost is determined at fairvalue.The land use rights are amortized equally over the period from the commencement date of the grant; theremaining intangible assets are amortized equally over the shortest of the estimated useful life, the contractualbeneficial life and the effective life as prescribed by law. Amortization is charged to the cost of the relevantasset and to current profit or loss in accordance with the object of its benefit. The estimated useful life andamortization method for intangible assets with finite useful lives are reviewed at the end of each year and anychanges are treated as changes in accounting estimates.
21. Research and development(R&D)
As for expenditure for research and development, the Company classifies it into expenditure on research phaseand development phase, based on nature of the expenditure and that whether the final intangible assets formedby research & development is of great uncertainty. Expenditure arising during research should be recorded incurrent gains and losses upon occurrence; expenditure arising during development is confirmed as intangibleassets when satisfying the following conditions:
-Completions of the intangible assets make it available for application or sell in technology;-Equipped with plan to complete the intangible asset and apply or sell it;-There is market for products produced with this intangible asset or the intangible asset itself;-Have sufficient technology, financial resource and other resources to support development of the intangibleassets, and have ability to apply or sell the assets;-Expenditure attributable to development of the intangible assets could be reliable measured.Expenditure arising during development not satisfying the above conditions shall be recorded in current gainsand losses upon occurrence. Development expenditure which had been recorded in gains and losses in previousperiod would not be recognized as assets in later period. Expenditure arising during development phase whichhas been starting capitalization is listed in balance sheet as development expenditure, and transferred tointangible assets since the project reaches at predicted utilization state.
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
22. Impairment of long-term assets
As at each balance sheet date, the Company has inspection on fixed assets, construction in process andintangible assets with limited service life. When the following indications appear, assets may be impaired, andthe Company would have impairment test. As for goodwill and intangible assets which have uncertain servicelife, no matter there is impairment or not, impairment test shall be conducted at the end of every year. If it ishard to make test on recoverable amount of single asset, test is expected to make on the basis of the assetsgroup or assets group portfolio where such asset belongs to.After impairment test, if the carrying value exceeds the recoverable amount of the asset, the balance isrecognized as impairment loss. As long as impairment loss of the aforementioned assets is recognized, itcouldn’t be switched back in later accounting periods. Recoverable amount of assets refers to the higher of fairvalue 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 predicteddrop due to move-on of times or normal utilization;
(2) Economy, technology or law environment where enterprise operates or market where asset is located willhave 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 bringsinfluence in calculating discount rate of present value of predicted future cash flow of assets, which leads to agreat 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 thanprediction, such as that net cash flow created by asset or operation profit (or loss) realized by asset is greatlylower (or higher) than the predicted amount;
(7) Other indications showing possible impairment of assets
23. Long-term deferred expenses
The company's long-term deferred expenses refer to the expenses that have been paid, but should be borneby the current period and future periods with an amortization period of more than one year (excluding oneyear), and these expenses are amortized evenly during the benefit period. If the long-term deferredexpense item cannot benefit the future accounting period, all the amortized value of the item that has notbeen amortized will be transferred into the current profit and loss.
24. Contract liability
Contract liabilities reflect the Company's obligation to transfer goods to customers for consideration receivedor receivable from customers. Before the Company transfers the goods to the customer, if the customer has
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
paid the contract consideration or the Company has obtained the right to unconditionally receive the contractconsideration, the contract liability is recognized based on the received or receivable amount at the earlier timepoint of the actual payment by the customer and the payment due.
25. Goodwill
Goodwill represents balance between equity investment cost or business combination cost under no commoncontrol exceeding the attributable part or fair value of recognizable net assets of party invested or purchased(obtained through business combination) as of acquisition day or purchase day.
Goodwill relating to subsidiaries is separately listed in consolidated financial statement. And goodwill relatingto associates and joint-ventures is included in carrying value of long-term equity investment.
26. Staff remuneration
Employee benefits mainly include all kinds of remuneration incurred in exchange for services rendered byemployees or compensation to the termination of employment relationship such as short-term wages, post-employment benefits, compensation for the termination of employment relationship and other long-termemployee welfare.
Short-term remuneration includes: staff salary, bonus, allowances and subsidies, staff benefits, socialinsurances like medical insurance, work-related injury insurance and maternity insurance, housing fund, laborunion funds and staff education funds, short-term paid absence of duty, short-term profit sharing scheme, andnon-monetary benefits as well as other short-term remuneration. During the accounting period when staffprovides services, the short-term remuneration actually occurred is recognized as liabilities and shall beincluded in current gains and losses or related asset costs according to the beneficial items.
Retirement benefits mainly consist of basic pension insurance, unemployment insurance and early-retirementbenefits, etc. retirement benefit scheme represents the agreement reached by the Company and its employeesin respect of retirement benefits, or the rules or regulations established by the Company for providingretirement benefits to employees. In particular, defined contribution plan means a retirement benefit plan,pursuant to which, the Company makes fixed contribution to independent fund, upon which, and it is notobliged to make further payment. Defined benefit plan refers to retirement benefit scheme other than definedcontribution plan.
The early retirement policy for staff and workers of the Company is the compensation for encouraging staffand workers to accept the reduction voluntarily. The employees make applications voluntarily, the two partiessign the compensation agreement after approved by the Company and calculate the compensation amount
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
according to the compensation standard passed by the staff representative conference, and the Companyconfirms it as dismiss welfare and reckons it in current profits and losses. As the Company promises to adjustthe treatment for early retiring staff and workers with the increase of social basic cost of living allowances, thediscount elements will not be considered for calculating the dismiss welfare.
27.Lease liability
When the Company becomes the lessee of the lease contract, it is entitled to obtain almost all economic benefitsarising from the use of the identified assets during the period of use, and also has the right to recognize thelease liabilities of the leased assets at the present value of the outstanding lease payments after deducting thelease incentive (except for short-term leases for which simplified treatment is selected and leases of low-valueassets) when directing the use of the identified assets during the period of use.
28.Accrual liability
If the business in connection with such contingencies as a security involving a foreign party, commercialacceptance bill discount, pending litigation or arbitration, product quality assurance, etc. meets all of thefollowing conditions, the Company will confirm the aforesaid as liabilities: the obligation is an existingobligation of the Company; performance of the obligation is likely to cause economic benefits to flow out ofthe enterprise; the amount of the obligation is reliably measurable.
29. Revenue
The Company’s sales revenue is mainly comprised of revenue from sale of goods, labor providing income andrevenue from assignment of asset use rights.The Company has fulfilled the performance obligations in the contract, that is, revenue is recognizedwhen thecustomer obtains control of the relevant goods or services.
If the contract contains two or more performance obligations, the Company will allocate the transaction priceto each individual performance obligation according to the relative proportion of the stand-alone selling priceof the goods or services promised by each individual performance obligation on the date of the contract. Therevenue is measured according to the transaction price of each individual performance obligation.
The transaction price is the amount of consideration that the Company expects to be entitled to receive due tothe transfer of goods or services to customers, excluding payments on behalf of third parties. The transactionprice confirmed by the Company does not exceed the amount at which the cumulatively recognized revenuewill most likely not to undergo a significant switch back when the relevant uncertainty is eliminated. Themoney expected to be returned to the customer will be regarded as a return liability and not included in thetransaction price.If there is a significant financing component in the contract, the Company shall determine thetransaction price based on the amount payable on the assumption that the customer pays in cash when obtaining
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
the control of the goods or services. The difference between the transaction price and the contract considerationshall be amortized by the effective interest method during the contract period. On the starting date of thecontract, if the Company expects that the interval between the customer's acquisition of control of the goodsor services and the customer's payment of the price doesn’t exceed one year, the significant financingcomponents in the contract shall be ruled out.
When meeting one of the following conditions, the Company is to perform its performance obligations withina certain period of time, otherwise, it is to perform its performance obligations at a certain point in time:
1) The customer obtains and consumes the economic benefits brought by the Company's performance at thesame time as the Company's performance;
2) Customers can control the products under construction during the performance of the Company;
3) The goods produced by the Company during the performance of the contract have irreplaceable uses, andthe Company has the right to collect payment for the accumulated performance part of the contract during theentire contract period.
For performance obligations performed within a certain period of time, the Company recognizes revenue inaccordance with the performance progress during that period and determine the progress of performance inaccordance with the output method. When the performance progress cannot be reasonably determined, if thecost incurred by the Company is expected to be compensated, the revenue shall be recognized according to theamount of the cost incurred until the performance progress can be reasonably determined.
For performance obligations performed at a certain point in time, the Company recognizes revenue at the pointwhen the customer obtains control of the relevant goods or services. When judging whether a customer hasobtained control of goods or services, the Company will consider the following signs:
1) The Company has the current right to collect payment for the goods or services;
2) The Company has transferred the goods in kind to the customer;
3) The Company has physically transferred the goods to the customer;
4) The Company has transferred the principal risks and rewards of ownership of the goods to the customer;
5) The customer has accepted the goods or services, etc.
The Company’s right to receive consideration for goods or services that have been transferred to customers arepresented as contractual assets, which are impaired on the basis of expected credit losses. The Company’sunconditional right to receive consideration from customers is shown as a account receivable. The obligationto transfer goods or services to customers for which the Company has received consideration receivable fromthem is shown as a contractual liability.
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
30. Government subsidy
Government subsidy of the Company include project grants, financial subsidies and job stabilizationsubsidies.Of which, asset-related government subsidy are government subsidy acquired by the Company forthe acquisition or other formation of long-term assets; government subsidy related to revenue are governmentsubsidy other than those related to assets. If the government document does not clearly specify the subsidyobject, the Company will judge according to the above-mentioned distinguishing principle. If it is difficult todistinguish, it will be overall classified as a government subsidy related to income.If government subsidies are monetary assets, they are measured according to the amount actually received. Forsubsidies paid on the basis of a fixed quota standard, when there is conclusive evidence at the end of the yearthat it can meet the relevant conditions stipulated by the financial support policy and is expected to receivefinancial support funds, they are measured according to the amount receivable. If the government subsidy is anon-monetary asset, it shall be measured at its fair value, when the fair value cannot be obtained reliably, itshall be measured at its nominal amount (1 yuan).
Government subsidies related to assets are recognized as deferred income. Asset-related government subsidiesthat are recognized as deferred income are included in the current profit and loss in installments according tothe average life method during the useful life of the relevant assets.
If the relevant asset is sold, transferred, scrapped or damaged before the end of its useful life, the undistributeddeferred income balance shall be transferred to the current profit and loss of asset disposal.
31. Deferred Income Tax Assets and Deferred Income Tax Liabilities
A deferred tax asset and deferred tax liability shall be determined by a difference (temporary difference)between the carrying amount of an asset or liability and its tax base. The deferred tax asset shall be recognizedfor the carry forward of unused deductible losses that it is probable that future taxable profits will be availableagainst which the deductible losses can be utilized. For temporary difference arising from initial recognitionof goodwill, no corresponding deferred income tax liabilities will be recognized. For temporary differencearising from initial recognition of assets and liabilities occurred in the transaction related to non-businesscombination which neither affect accounting profit nor taxable income (or deductible losses), no correspondingdeferred income tax assets and deferred income tax liabilities will be recognized. As of the balance sheet date,deferred income tax assets and deferred income tax liabilities are measured at the effective tax rate applicableto the period when recovery of assets or settlement of liabilities occur.
The Company recognizes deferred income tax assets to the extent of future taxable income tax which is likelyto be obtained to offset deductible temporary difference, deductible losses and tax credits.
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
32.Lease
When the Company becomes the lessee of the lease contract, has the right to obtain almost all the economicbenefits arising from the use of the identified assets during the period of use, and has the right to lead the useof the identified assets during the period of use, the present value of unpaid lease payments of the lease assetsafter deducting lease incentives (except for short-term leases and leases of low-value assets for whichsimplified treatment is selected) is recognized as a lease liability, and a right-of-use asset is recognized basedon the sum of the present value of the lease liability, prepaid rent, and initial direct costs, and depreciation andinterest expenses are recognized separately.When the Company becomes the lessee of the lease contract, for short-term leases without purchase optionswithin one year and lease contracts with a value of less than 40,000 yuan (excluding sublease or expectedsublease assets), choose simplified treatment, and include in the related asset cost or current profit and lossaccording to the straight-line method during the lease period.
When the Company becomes the lessor of a lease contract, the lease is divided into operating lease and financelease on the start date of lease. A finance lease is a lease that transfers substantially all the risks and rewardsassociated with ownership of an asset. An operating lease refers to a lease other than finance leases. The rentof an operating lease is recognized as income on a straight-line basis during the lease term. For an finance lease,the net investment in the lease is regarded as the entry value of the finance lease receivables, and the netinvestment in the lease is the sum of the unguaranteed residual value and the present value of the lease receiptsthat have not been received on the start date of the lease term.There are both leasing and non-leasing businesses in the contract and can be split, and the leasing business isfinancially accounted according to the lease standards. There are both leasing and non-leasing businesses inthe contract and cannot be split, and the entire contract is included in the lease business for financial accountingaccording to the lease standards.The lease change needs to be judged whether it can be recognized as a single leasing business, and it needs tobe recognized separately if it meets the recognition conditions of a single lease; if it does not meet therecognition of a single leasing business, or there is a major event or change within the controllable range of thelessee, re-evaluate and measure the present value of lease liabilities, and adjust the book value of the right-of-use asset accordingly. If the book value of the right-of-use asset has been reduced to zero, but the lease liabilitystill needs to be further reduced, the lessee shall include the remaining amount in the corresponding expensesfor the current period.
33. Held-for-sale
(1)The Company classifies non-current assets or disposal groups that meet all of the following conditions as
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
held-for-sale: 1) according to the practice of selling this type of assets or disposal groups in a similar transaction,the non-current assets or disposal group can be sold immediately at its current condition; 2) The sale is likelyto occur, that is, the Company has made resolution on the selling plan and obtained definite purchasecommitment, the selling is estimated to be completed within one year. Those assets whose disposal is subjectto approval from relevant authority or supervisory department under relevant requirements are subject to thatapproval. Prior to the preliminary classification of non-current assets or disposal group as the category of held-for-sale, the Company measures the carrying value of the respective assets and liabilities within the non-currentassets or disposal group under relevant accounting standards. For non-current asset or disposal group held forsale, for which it is found that the carrying value is higher than its fair value less disposal expense during theinitial measurement or re-measurement on the balance sheet date, the carrying value shall be deducted to thenet amount of fair value less disposal expense, and the reduced amount shall be recognized as impairment lossin profit or loss for the period, and provision of impairment of assets held for sale shall be provided foraccordingly.
(2)The non-current assets or disposal group that the Company has acquired specially for resale are classifiedas held for sale on the acquisition date when they meet the condition that “the selling is estimated to becompleted within one year” on the acquisition date, and are likely to satisfy other conditions of being classifiedas the type of held for sale in a short-term (usually being 3 months). Non-current assets or disposal groupclassified as held for sale are measured at the lower of their initial measurement amount and the net amountafter their fair value less the selling expenses based on the assumption that such non-current assets or disposalgroup are not classified as held for sale at the time of initial measurement. Except for the non-current assets ordisposal group acquired in a business combination, the difference arising from considering the net amount ofsuch non-current assets or disposal group after their fair value less the selling expenses as the initialmeasurement amount is recorded in the current profit or loss.
(3)In case of loss of control over the subsidiaries due to the sales of investment in subsidiaries, no matterwhether the Company retains part of the equity investment after selling investment in subsidiaries, theinvestment in subsidiaries shall be classified as held for sale on an aggregate basis in the separate financialstatements of the parent company when the investment in subsidiaries proposed to be sold satisfies theconditions for being classified as held for sale; and all the assets and liabilities of the subsidiary shall beclassified as held for sale in the consolidated financial statements.
(4)If the net amount of fair value of non-current assets held for sale less sales expense on subsequent balancesheet date increases, the amount previously reduced for accounting shall be recovered and reverted from theimpairment loss recognized after the asset is classified under the category of held for sale, with the amount
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
reverted recorded in profit or loss for the period. Impairment loss recognized before the asset is classified underthe category of held for sale shall not be reverted.
(5)For the amount of impairment loss on assets, the carrying value of disposal group’s goodwill shall be offsetagainst first, and then offset against the book value of non-current assets according to the proportion of bookvalue of non-current assets.If the net amount of fair value of the disposal group held for sale on the subsequent balance sheet date lesssales expenses increases, the amount reduced for accounting in previous periods shall be restored, and shall bereverted in the impairment loss recognized in respect of the non-current assets which are applicable to relevantmeasurement provisions after classification into the category of held for sale, with the reverted amount chargedin profit or loss for the current period. The written-off carrying value of goodwill and impairment loss of non-current assets which is recognized prior to classification into the category of held for sale shall not be reverted.The subsequent reversed amount in respect of the impairment loss on assets recognized in the disposal groupheld for sale will increase the book value in proportion of the book value of each non-current asset (other thangoodwill) in the disposal group.
(6) The non-current assets in the non-current assets or disposal group held for sale is not depreciated oramortized, and the debt interests and other fees in the disposal group held for sale continue to be recognized.
(7)If the non-current assets or disposal group are no longer classified as held for sale since they no longer meetthe condition of being classified as held for sale or the non-current assets are removed from the disposal groupheld for sale, they will be measured at the lower of the following: 1) the amount after their book value beforethey are classified as held for sale is adjusted based on the depreciation, amortization or impairment that shouldhave been recognized given they are not classified as held for sale; 2) the recoverable amount.
(8) The unrecognized profits or loss will be recorded in the current profits or loss when derecognizing the non-current assets or disposal group held for sale.
34. Discontinued operation
A discontinued operation is a separately identified component of the Group that either has been disposed of oris classified as held for sale, and satisfies one of the following conditions: (1) represents a separate major lineof business or geographical area of operations; (2) is part of a single co-ordinate plan to dispose of a separatemajor line of business or geographical area of operations; and (3) is a subsidiary acquired exclusively with aview to resale.
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
35. Income tax accounting
The Company accounted the income tax in a method of debit in balance sheet. The income tax expenses includeincome tax in the current year and deferred income tax. The income tax associated with the events andtransactions directly included in the owners’ equity shall be included in the owners’ equity; and the deferredincome tax derived from business combination shall be included in the carrying amount of goodwill, exceptfor that above, the income tax expense shall be included in the profit or loss in the current period.The income tax expense in the current year refers to the tax payable, which is calculated according to the taxlaws on the events and transactions incurred in the current period. The deferred income tax refers to thedifference between the carrying amount and the deferred tax assets and deferred tax liabilities at Current Year-end recognized in the method of debit in the balance sheet.
36. Segment information
Business segment was the major reporting form of the Company, which divided into four parts: air-conditioning, refrigerator & freezer& washing machine,small home appliance and others. The transfer priceamong the segments will recognize based on the market price, common costs will allocated by incomeproportion between segments except for the parts that without reasonable allocation.
37. Explanation on significant accounting estimation
The management of the Company needs to apply estimation and assumption when preparing financialstatement which will affect the application of accounting policy and amounts of assets, liabilities, income andexpense. The actual condition may differ from the estimation. Constant evaluation is conducted by themanagement in respect of the key assumption involved in the estimation and judgment of uncertainties. Effectresulting from change of accounting estimation is recognized in the period the change occurs and future periods.
The following accounting estimation and key assumption may result in material adjustment to the book valueof assets and liabilities in future period.
(1) Inventory impairment provision
The Company's provision for impairment of inventories on the balance sheet date is the part of the net realizablevalue lower than the cost of inventories. The net realizable value of the inventory of goods that are directlyused for sale, such as the goods in stock, the goods sent out, and the materials for sale, and the low-consumptiongoods, shall be determined by the amount of the estimated selling price of the inventory minus the estimatedselling expenses and relevant taxes. The net realizable value of the material inventory held for production isdetermined by the amount of the estimated selling price of the finished product produced minus the estimatedcost to be incurred at the time of completion, the estimated selling expenses and relevant taxes.
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
(2) Accounting estimation on long-term assets impairment provision
The Company makes impairment test on fixed assets such as buildings, machine and equipment which haveimpairment indication and long-term assets such as goodwill as at the balance sheet date. The recoverableamount of relevant assets and assets group shall be the present value of the projected future cash flow whichshall be calculated with accounting estimation.
If the management amends the gross profit margin and discount rate adopted in calculation of future cash flowof assets and assets group and the amended gross profit margin is lower than the currently adopted one or theamended discount rate is higher than the currently adopted one, the Company needs to increase provision ofimpairment provision. If the actual gross profit margin is higher (or the discount rate is lower) than theestimation of management, the Company can not transfer back the long term assets impairment provisionprovided already.
(3) Accounting estimation on realization of deferred income tax assets
Estimation on deferred income tax assets needs estimation on the taxable income and applicable tax rate foreach future year. Realization of deferred income tax assets depends on whether a company is able to obtainsufficient taxable income in future. Change of future tax rate and switch back of temporary difference couldaffect the balance of income tax expense (gains) and deferred income tax. Change of the aforesaid estimationmay result in material adjustment to deferred income tax.
(4) Usable term and residual value rate of fixed assets and intangible assets
The Company, at least at the end of each accounting year, reviews the projected usable life and residual valuerate of fixed assets and intangible assets. The projected usable life and residual value rate are determined bythe management based on the historical experiences of similar assets by reference to the estimation generallyused by the same industry with consideration on projected technical upgrade. If material change occurs toprevious estimation, the Company shall accordingly adjust the depreciation expenses and amortizationexpenses for future period.
(5) Projected liabilities arising from product quality guarantee
The Company commits to repair the major spare parts of refrigerators sold through go-to-countrysidepromotion activity for free for ten years. As to the maintenance expenses that may be increased arising fromsuch commitment, the Company has provided projected liabilities.
Taking into account the various uncertainties during the ten years, the Company considers no discount factorof such projected liabilities. Instead, the Company reviews the parameters (probility, proportion, maintenanceexpense per single set) based on the actual occurrence of maintenance expenses as of each balance sheet date.
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
If obvious change is found, the Company will adjust the projected liabilities according to the latest parametersso as to reflect the best estimation.
38. Other comprehensive income
Other comprehensive income represents various gains and losses not recognized in current gains and lossesaccording to other accounting rules.Other comprehensive income items shall be reported in the following two classes under other relevantaccounting rules:
(1)Other comprehensive income items that can not be reclassified into gains and losses in future accountingperiods, mainly including changes arising from re-measurement of net liabilities or net assets under definedbenefit plan and interest in investee’s other comprehensive income which are measured under equity methodand which can not be reclassified into gains and losses in future accounting periods;
(2) Other comprehensive income items that will be reclassified into gains and losses in future accountingperiods upon satisfaction of required conditions, mainly includes the share of other comprehensive income thatis reclassified into profit and loss when the investee’s subsequent accounting periods are accounted for inaccordance with the equity method and meet the specified conditions, the fair value changes occurred by thedebt investment that is measured at fair value and whose changes are included in other comprehensive income,the difference between the original book value included in other comprehensive income and the fair valuewhen a financial asset measured at amortized cost is reclassified as a financial asset measured at fair value andits changes are included in other comprehensive income, the loss provisions for financial assets measured atfair value and whose changes are included in other comprehensive income, the gains or losses generated fromcash flow hedging instruments are part of effective hedging, and the differences in conversion of foreigncurrency financial statements.
39. Change of significant accounting policies and accounting estimates
(1) Change of significant accounting policy: N/A
(2) Change of significant accounting estimates: N/A
V. Taxation
1. Major taxes and tax rates
| Tax (expenses) | Tax (expenses) base | Tax (expenses) rate |
| VAT | Income from sales of goods and from processing | 13%, 9%, 6%, 5%, 3% |
| Urban maintenance and construction tax | Turnover tax | 5% or 7% |
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
| Tax (expenses) | Tax (expenses) base | Tax (expenses) rate |
| Education surcharge | Turnover tax | 3% |
| Local education surcharge | Turnover tax | 2% |
| Corporate income tax | Taxable income | 15%, 20%, 25%, 30%, 33% |
| House property tax | Original Book value of house property×(1-30%)or annual rent income | 1.2% or 12% |
| Land use tax | Actual land area used | 1 yuan/M2 to 15 yuan /M2 |
Description of taxpayers with different corporate income tax rates:
| Name | Income tax rate |
| Changhong Meiling Co., Ltd. | 15% |
| Zhongke Meiling Cryogenic Technology Co., Ltd | 15% |
| Zhongshan Changhong Electric Co., Ltd | 15% |
| Sichuan Hongmei Intelligent Technology Co., Ltd. | 15% |
| Mianyang Meiling Refrigeration Co., Ltd. | 15% |
| Changhong Meiling Ridian Technology Co., Ltd. | 15% |
| Ground Energy Heat Pump Tech. (Zhongshan) Co., Ltd. | 15% |
| Hefei Meiling Nonferrous Metal Products Co., Ltd. | 15% |
| Jiangxi Meiling Electric Appliance Co., Ltd. | 15% |
| Sichuan Changhong Air-conditioner Co., Ltd | 15% |
| Hebei Hongmao Daily Appliance Technology Co., Ltd. | 15% |
| Anhui Tuoxing Technology Co., Ltd. | 20% |
| Guangzhou Changhong Trading Co., Ltd. | 20% |
| Anhui Ling'an Medical Equipment Co., Ltd | 20% |
| Hefei Meiling Wulian Technology Co., Ltd | 20% |
| CH-Meiling International (Philippines) Inc. | 30% |
| Changhong Ruba Trading Company (Private) Limited | 33% |
2. Preferential tax
(1) On August 17, 2020, the company obtained the high-tech enterprise certificate numbered GR202034000222approved by the Anhui Provincial Department of Science and Technology, Anhui Provincial Department ofFinance, and Anhui Provincial Taxation Bureau of the State Administration of Taxation, and enjoys 15% ratefor the income tax for State Hi-Tech Enterprise for three years term.
(2) On August 17, 2020, the subsidiary Zhongke Meiling Cryogenic Technology Co., Ltd. obtained the high-tech enterprise certificate numbered GR202034000072 approved by the Anhui Provincial Department of
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
Science and Technology, Anhui Provincial Department of Finance, and Anhui Provincial Taxation Bureau ofthe State Administration of Taxation, and enjoys 15% rate for the income tax for State Hi-Tech Enterprise forthree years term.
(3) On December 9, 2020, the subsidiary Zhongshan Changhong Electric Co., Ltd., was included in the “Noticeon Publicizing the List of the Second Batch of High-tech Enterprises to be Recognized in Guangdong Provincein 2020'' published by the Office of the National High-tech Enterprise Certification Management LeadingGroup, and continues to enjoy 15% rate for the income tax for State Hi-Tech Enterprise for three years term.
(4) The subsidiary Sichuan Hongmei Intelligent Technology Co., Ltd. has passed the qualification of high-techenterprise certification on 9 October 2021, and enjoys 15% rate for the income tax for State Hi-Tech Enterprisefor three years term.
(5) Subsidiary Mianyang Meiling Refrigeration Co., Ltd., belongs to the encouraged industry in the IndustrialStructure Adjustment Guidance Catalog and enjoys the preferential taxation policy of corporate income tax forthe Western Development, and the corporate income tax is levied at a reduced tax rate of 15%, valid untilDecember 31, 2030.
(6) The subsidiary Guangdong Changhong Meiling Ridian Technology Co., Ltd. has passed the qualificationof high-tech enterprise certification on 2 December 2019, and enjoys 15% rate for the income tax for State Hi-Tech Enterprise for three years term.
(7) The subsidiary Ground Energy Heat Pump Tech. (Zhongshan) Co., Ltd. has passed the qualification ofhigh-tech enterprise certification on 2 December 2019, and enjoys 15% rate for the income tax for State Hi-Tech Enterprise for three years term.
(8) The subsidiary Hefei Meiling Nonferrous Metal Products Co., Ltd. has passed the qualification of high-tech enterprise certification on 18 September 2021, and enjoys 15% rate for the income tax for State Hi-TechEnterprise for three years term.
(9) The subsidiary Jiangxi Meiling Electric Appliance Co., Ltd. has passed the qualification of high-techenterprise certification on 16 September 2019, and enjoys 15% rate for the income tax for State Hi-TechEnterprise for three years term.
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
(10) The subsidiary Sichuan Changhong Air-conditioner Co., Ltd., belongs to the encouraged industry in theIndustrial Structure Adjustment Guidance Catalog and enjoys the preferential taxation policy of corporateincome tax for the Western Development, and the corporate income tax is levied at a reduced tax rate of 15%,valid until December 31, 2030.
(11) The subsidiary Hebei Hongmao Daily Appliance Technology Co., Ltd. has passed the qualification ofhigh-tech enterprise certification on 18 September 2021, and enjoys 15% income tax rate for national payrolltechnology enterprise for three years term.
(12) The subsidiary Anhui Tuoxing Technology Co., Ltd., Anhui Ling’an Medical Equipment Co., Ltd., HefeiMeiling Wulian Technology Co., Ltd., Guangzhou Changhong Trading Co., Ltd. are in compliance with therelevant standards for small and medium-sized enterprises with meager profits in the “Notice on matters relatedto the implementation of preferential income tax policy to support the development of small & medium-sizeenterprise and individual entrepreneurs” (Guoshui [2021] No. 8) and “Notice on Further Implementationof Preferential Income Tax Policies for Small & Micro Enterprises (No.: 13 of 2022)” of the Ministry ofFinance and the State Administration of Taxation, and temporarily implements below policies: the part ofannual taxable income that does not exceed one million yuan is included in taxable income by 12.5% after areduction, and corporate income tax is paid at a tax rate of 20%, valid until December 31, 2022; while the partof annual taxable income exceeds one million yuan but not exceeding three million yuan is included in taxableincome by 25% after a reduction, and corporate income tax is paid at a tax rate of 20%, which is valid untilDecember 31, 2024.VI. Notes to the major items in the consolidated financial statementsWith respect to the financial statements’ figures disclosed below, unless otherwise specified, “period-beginning”refers to Jan. 1, 2022; “period-end” refers to Jun. 30, 2022; “Current Period” refers to Jan. 1 to Jun. 30, 2022;“the last period” refers to Jan. 1 to Jun. 30, 2021; the currency is RMB.
1. Monetary fund
| Item | Ending balance | Opening balance |
| Cash | 31,633.86 | 28,447.21 |
| Bank deposit | 5,236,987,879.70 | 5,121,110,089.59 |
| Other monetary fund | 932,537,330.83 | 805,215,921.34 |
| Interest receivable on deposit | 13,448,250.72 | 12,468,938.07 |
| Total | 6,183,005,095.11 | 5,938,823,396.21 |
| Including: total amount deposited in overseas | 6,255,478.31 | 8,156,154.33 |
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
| Item | Ending balance | Opening balance |
| Total use of restricted funds | 931,910,598.85 | 86,159,526.57 |
Other monetary fund:
| Item | Ending balance | Opening balance |
| Cash deposit | 544,756,104.36 | 776,959,862.25 |
| Time deposit | 354,040,000.00 | |
| Litigation Freeze | 32,103,675.00 | 6,603,675.00 |
| Co-managed account funds | 1,010,819.49 | 504,702.66 |
| Account of foreign currency for verification | 397,936.85 | |
| Union Pay online | 228,412.93 | 546,234.06 |
| Taobao account | 74,572.96 | |
| B share account payment | 382.20 | 20,526,874.41 |
| Total | 1,069,654,408.78 | 805,215,921.34 |
Those not included in cash and cash equivalent are: balance of deposit for bank acceptance bill 543,272,065.16 yuan, L/C depositof 1,484,039.20 yuan and time deposit of 354,040,000.00 yuan. Bank deposit 32,103,675.00 yuan frozen due to the litigation,balance of 1,010,819.49 yuan that have use restriction in condominium account and interest receivable on deposit 13,448,250.72yuan. The remaining Monetary funds are treated as cash and cash equivalents.
2. Trading financial assets
| Item | Ending balance | Opening balance |
| Financial assets measured at fair value and whose changes are included in current gains/losses | 208,184,795.23 | 17,997,086.19 |
| Including: Derivative financial assets | 47,475,394.08 | 17,997,086.19 |
| Principal and interest of wealth management products | 160,709,401.15 |
Trading financial assets refer to the RMB forward exchange fund in Current Period
3. Note receivable
(1) Category of note receivable
| Item | Ending balance | Opening balance |
| Bank acceptance | 439,419.03 | 2,216,752.22 |
| Total | 439,419.03 | 2,216,752.22 |
| Less: bad debt provision | ||
| Book value | 439,419.03 | 2,216,752.22 |
(2) No notes endorsement or discount and undue on balance sheet date
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
(3) Notes transfer to account receivable due for failure implementation by drawer at period-end
| Item | Amount of accounts receivable transferred at period-end |
| Bank acceptance | 300,000.00 |
| Trade acceptance | 102,470,414.97 |
| Total | 102,770,414.97 |
(4) By accrual of bad debt provision
| Category | Ending balance | ||||
| Book balance | Bad debt provision | Book value | |||
| Amount | Ratio (%) | Amount | Ratio (%) | ||
| With bad debt provision accrual on single item | 439,419.03 | 100 | 439,419.03 | ||
| Including: bank acceptance | 439,419.03 | 100 | 439,419.03 | ||
| Total | 439,419.03 | 100 | 439,419.03 | ||
(Continued)
| Category | Opening balance | ||||
| Book balance | Bad debt provision | Book value | |||
| Amount | Ratio (%) | Amount | Ratio (%) | ||
| With bad debt provision accrual on single item | 2,216,752.22 | 100.00 | 2,216,752.22 | ||
| Including: bank acceptance | 2,216,752.22 | 100.00 | 2,216,752.22 | ||
| Total | 2,216,752.22 | 100.00 | 2,216,752.22 | ||
1) Note receivable withdrawal bad debt provision on single item
| Name | Ending balance | |||
| Book balance | Bad debt provision | Provision ratio (%) | Provision reason | |
| Bank acceptance | 439,419.03 | Minimal risk, holding maturity acceptance | ||
| Total | 439,419.03 | — | — | |
(Continued)
| Name | Opening balance | |||
| Book balance | Bad debt provision | Provision ratio (%) | Provision reason | |
| Bank acceptance | 2,216,752.22 | Minimal risk, holding maturity acceptance | ||
| Total | 2,216,752.22 | — | — | |
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
(5) No bad debt provision of note receivable that has been accrued, withdrawn, and reversed this period
(6) No note receivable actually written off in this period.
4. Account receivable
(1) Category of account receivable by bad debt accrual
| Category | Ending balance | ||||
| Book balance | Bad debt provision | Book value | |||
| Amount | Ratio (%) | Amount | Ratio (%) | ||
| Account receivable that withdrawal bad debt provision by single item | 1,042,626,200.81 | 43.08 | 29,155,889.89 | 2.80 | 1,013,470,310.92 |
| Including: current payment with related party | 1,017,575,253.24 | 42.05 | 6,982,193.83 | 0.69 | 1,010,593,059.41 |
| Account receivable with letter of credit | 1,192,657.90 | 0.05 | 1,192,657.90 | ||
| Account receivable with single minor amount but withdrawal single item bad debt provision | 23,858,289.67 | 0.98 | 22,173,696.06 | 92.94 | 1,684,593.61 |
| Account receivable withdrawal bad debt provision by portfolio | 1,377,396,479.09 | 56.92 | 120,013,557.89 | 8.71 | 1,257,382,921.20 |
| Including: account receivable of engineering customers | 225,796,909.41 | 9.33 | 21,022,556.39 | 9.31 | 204,774,353.02 |
| Receivables other than engineering customers | 1,151,599,569.68 | 47.59 | 98,991,001.50 | 8.60 | 1,052,608,568.18 |
| Total | 2,420,022,679.90 | 100.00 | 149,169,447.78 | 6.16 | 2,270,853,232.12 |
(Continued)
| Category | Opening balance | ||||
| Book balance | Bad debt provision | Book value | |||
| Amount | Ratio (%) | Amount | Ratio (%) | ||
| Account receivable that withdrawal bad debt provision by single item | 822,475,594.55 | 53.40 | 25,372,653.49 | 3.08 | 797,102,941.06 |
| Including: current payment with related party | 754,228,757.41 | 48.97 | 4,149,753.85 | 0.55 | 750,079,003.56 |
| Account receivable with letter of credit | 47,023,937.50 | 3.05 | 47,023,937.50 | ||
| Account receivable with single minor amount but withdrawal single item bad debt provision | 21,222,899.64 | 1.38 | 21,222,899.64 | 100.00 | |
| Account receivable withdrawal bad debt provision by portfolio | 717,853,201.83 | 46.60 | 74,081,451.61 | 10.32 | 643,771,750.22 |
| Including: account receivable of engineering customers | 191,420,885.49 | 12.43 | 15,308,246.27 | 8.00 | 176,112,639.22 |
| Receivables other than engineering customers | 526,432,316.34 | 34.17 | 58,773,205.34 | 11.16 | 467,659,111.00 |
| Total | 1,540,328,796.38 | 100.00 | 99,454,105.10 | 6.46 | 1,440,874,691.28 |
1) Account receivable that withdrawal bad debt provision by single item
Account receivable with single minor amount but withdrawal bad debt provision singly, refers to the minor
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
single receivables, and withdrawal bad debt provision by combination shows no risk characteristic of thereceivables, 64 clients involved.
2) Account receivable withdrawal bad debt provision by portfolio
A. Account receivable of engineering customers
| Account age | Ending balance | ||
| Book balance | Bad debt provision | Provision ratio (%) | |
| Within 3 months (3 months included) | 29,837,468.00 | ||
| More than 3 months and less than 6 months (6 months included) | 28,454,538.58 | ||
| Over 6 months and within one year (One year included) | 113,588,126.66 | ||
| Over one year - within 2 years (2 years included) | 26,977,783.97 | 5,395,556.79 | 20.00 |
| Over 2 years - within 3 years (3 years included) | 22,623,985.20 | 11,311,992.60 | 50.00 |
| Over 3 years | 4,315,007.00 | 4,315,007.00 | 100.00 |
| Total | 225,796,909.41 | 21,022,556.39 | |
(Continued)
| Account age | Opening balance | ||
| Book balance | Bad debt provision | Provision ratio (%) | |
| Within 3 months (3 months included) | 47,442,159.78 | ||
| More than 3 months and less than 6 months (6 months included) | 66,786,580.82 | ||
| Over 6 months and within one year (One year included) | 24,376,909.49 | ||
| Over one year - within 2 years (2 years included) | 38,592,189.76 | 7,718,437.95 | 20.00 |
| Over 2 years - within 3 years (3 years included) | 13,266,474.64 | 6,633,237.32 | 50.00 |
| Over 3 years | 956,571.00 | 956,571.00 | 100.00 |
| Total | 191,420,885.49 | 15,308,246.27 | |
B. Receivables other than engineering customers
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
| Account age | Ending balance | ||
| Book balance | Bad debt provision | Provision ratio (%) | |
| Within 3 months (3 months included) | 907,144,840.15 | 9,071,448.40 | 1.00 |
| More than 3 months and less than 6 months (6 months included) | 47,241,864.84 | 4,724,186.48 | 10.00 |
| Over 6 months and within one year (One year included) | 77,647,870.89 | 15,529,574.18 | 20.00 |
| Over one year - within 2 years (2 years included) | 96,831,997.36 | 48,415,998.68 | 50.00 |
| Over 2 years - within 3 years (3 years included) | 7,416,013.41 | 5,932,810.73 | 80.00 |
| Over 3 years | 15,316,983.03 | 15,316,983.03 | 100.00 |
| Total | 1,151,599,569.68 | 98,991,001.50 | |
(Continued)
| Account age | Opening balance | ||
| Book balance | Bad debt provision | Provision ratio (%) | |
| Within 3 months (3 months included) | 299,994,550.94 | 2,999,945.51 | 1.00 |
| More than 3 months and less than 6 months (6 months included) | 68,972,844.55 | 6,897,284.46 | 10.00 |
| Over 6 months and within one year (One year included) | 126,004,879.57 | 25,200,975.91 | 20.00 |
| Over one year - within 2 years (2 years included) | 12,130,576.34 | 6,065,288.17 | 50.00 |
| Over 2 years - within 3 years (3 years included) | 8,598,768.25 | 6,879,014.60 | 80.00 |
| Over 3 years | 10,730,696.69 | 10,730,696.69 | 100.00 |
| Total | 526,432,316.34 | 58,773,205.34 | |
(2) By account age
| Account age | Ending balance | Opening balance |
| Within 3 months (3 months included) | 1,835,823,014.20 | 1,081,226,013.94 |
| More than 3 months and less than 6 months (6 months included) | 145,211,963.66 | 162,654,138.54 |
| Over 6 months and within one year (One year included) | 163,722,660.71 | 179,880,109.29 |
| Over one year - within 2 years (2 years included) | 159,003,059.62 | 63,134,405.85 |
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
| Account age | Ending balance | Opening balance |
| Over 2 years - within 3 years (3 years included) | 78,284,260.67 | 23,736,943.93 |
| Over 3 years | 37,977,721.04 | 29,697,184.83 |
| Total | 2,420,022,679.90 | 1,540,328,796.38 |
(3) Bad debt provision of accounts receivable this period
| Category | Opening balance | Changes this period | Ending balance | |||
| Accrual | Withdrawal or reversal | Resale or write-off | Other decreases | |||
| Bad debt provision | 99,454,105.10 | 51,578,302.20 | 714,463.58 | 1,148,495.94 | 149,169,447.78 | |
| Total | 99,454,105.10 | 51,578,302.20 | 714,463.58 | 1,148,495.94 | 149,169,447.78 | |
(4) Account receivable actually written-off in Current Period: nil
(5) Top five receivables collected by arrears party amounting to 1,628,322,390.23 yuan in total, accountedfor 67.29% of the receivables of Current Period-end, the bad debt provision accrual correspondinglyamounting to 60,335,952.55 yuan at period-end balance.
(6) Account receivable terminated recognition due to the transfer of financial assets: 1,193,151,944.08 yuan
(7) No assets and liability transfer account receivable and continues to involve
5. Receivables financing
| Item | Ending balance | Opening balance |
| Bank acceptance | 1,380,100,294.09 | 1,808,109,301.56 |
| Total | 1,380,100,294.09 | 1,808,109,301.56 |
(1)Notes receivable already pledged that presented in receivables financing:
| Item | Amount pledged at period-end | Amount pledged at period-begin |
| Bank acceptance | 515,578,650.05 | 385,477,263.99 |
Note: with purpose of improving the note utilization, the Company draw up bank acceptance by pledge parts of the outstandingnotes receivable to the bank. For details of the pledge of bills receivable, see Note VI. 63. Assets with restricted ownership oruse rights.
(2)Receivable financing that have been endorsed or discounted at end of the Period and are not yet dueat balance sheet date
| Item | Amount derecognition at period-end | Amount without derecognition at period-end |
| Bank acceptance | 1,145,936,133.26 | |
| Total | 1,145,936,133.26 |
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
6. Accounts paid in advance
(1) Age of account paid in advance
| Item | Ending balance | Opening balance | ||
| Amount | Ratio （%） | Amount | Ratio （%） | |
| Within one year | 24,668,194.57 | 85.88 | 28,208,857.49 | 94.77 |
| 1-2 years | 3,188,170.86 | 11.10 | 1,557,939.85 | 5.23 |
| 2-3 years | 868,224.49 | 3.02 | ||
| Over 3 years | ||||
| Total | 28,724,589.92 | 100.00 | 29,766,797.34 | 100.00 |
(2) Top 5 of account paid in advance in balance at period-end amounting to 19,882,246.82 yuan, accountedfor 69.22% of the account.
7. Other account receivable
| Item | Ending balance | Opening balance |
| Other account receivable | 101,572,345.96 | 111,652,635.86 |
| Total | 101,572,345.96 | 111,652,635.86 |
(1) Category of other account receivable
| Nature | Book balance at period-end | Book balance at period-begin |
| Export rebate | 8,001,439.54 | 26,634,190.54 |
| Cash deposit | 57,304,812.87 | 70,481,345.37 |
| Loans of employee’s pretty cash | 14,573,159.55 | 12,299,111.06 |
| Related party not in consolidation statement | 872,583.65 | 718,189.14 |
| Advance money temporary | 95,223.40 | 355,045.58 |
| Compensation payments | 21,077,786.35 | |
| Other | 373,164.28 | 2,289,144.60 |
| Total | 102,298,169.64 | 112,777,026.29 |
(2) Other account receivable bad debt reserves
| Bad debt provision | First stage | Second stage | Third stage | Total |
| Expected credit loss in next 12 months | Expected credit loss for the whole duration (no credit impairment) | Expected credit loss for the whole duration (credit impairment has occurred) | ||
| Balance as at 1 Jan. 2022 | 1,074,390.43 | 50,000.00 | 1,124,390.43 | |
| Book balance of other account receivable in Current Period as | — | — | — | — |
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
| Bad debt provision | First stage | Second stage | Third stage | Total |
| Expected credit loss in next 12 months | Expected credit loss for the whole duration (no credit impairment) | Expected credit loss for the whole duration (credit impairment has occurred) | ||
| at 1 Jan. 2022 | ||||
| --Transfer to the second stage | ||||
| -- Transfer to the third stage | ||||
| -- Reversal to the second stage | ||||
| -- Reversal to the first stage | ||||
| Provision in Current Period | -397,219.49 | -397,219.49 | ||
| Reversal in Current Period | ||||
| Conversion in Current Period | ||||
| Write off in Current Period | ||||
| Other change | -1,347.26 | -1,347.26 | ||
| Balance as at 30 Jun. 2022 | 675,823.68 | 50,000.00 | 725,823.68 |
(3) By account age
| Account age | Ending balance | Opening balance |
| Within 3 months (3 months included) | 46,412,715.34 | 50,798,283.74 |
| More than 3 months and less than 6 months (6 months included) | 4,165,411.25 | 15,511,159.70 |
| Over 6 months and within one year (One year included) | 16,711,089.16 | 7,875,791.66 |
| Over one year - within 2 years (2 years included) | 25,648,393.78 | 28,844,885.97 |
| Over 2 years - within 3 years (3 years included) | 4,068,922.94 | 4,113,598.75 |
| Over 3 years | 5,291,637.17 | 5,633,306.47 |
| Total | 102,298,169.64 | 112,777,026.29 |
(4) Top 5 other receivables collected by arrears party at balance of period-end:
| Name | Nature | Ending balance | Account age | Proportion in total other receivables ending balance (%) | Ending balance of bad debt provision |
| Unit I | Insurance compensation | 18,970,000.00 | Within 3 months | 18.54 | |
| Unit II | Cash deposit | 8,780,849.40 | 1-2 years | 8.58 | |
| Unit III | Tax rebate | 8,001,439.54 | Within 3 months | 7.82 | |
| Unit IV | Cash deposit | 5,320,000.00 | Within 3 months | 5.20 | |
| Unit V | Cash deposit | 3,692,993.00 | 6 months-1 year & 2-3 | 3.61 |
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
| Name | Nature | Ending balance | Account age | Proportion in total other receivables ending balance (%) | Ending balance of bad debt provision |
| years | |||||
| Total | — | 44,765,281.94 | 43.75 |
(5) No other account receivable involved government subsidies
(6) No other receivables terminated recognition due to the transfer of financial assets
(7) No assets and liability transfer other receivables and continues to involve
8. Inventories
(1) Classification of inventories
| Item | Ending balance | ||
| Book balance | Inventory price decline provision/contract performance cost impairment provision | Book value | |
| Raw materials | 174,635,938.38 | 10,907,638.25 | 163,728,300.13 |
| Stock commodities | 979,870,437.65 | 56,093,198.50 | 923,777,239.15 |
| Low value consumable articles | 4,953,458.19 | 1,381,368.56 | 3,572,089.63 |
| Goods in transit | 406,727,070.61 | 11,467,431.64 | 395,259,638.97 |
| Goods-in-process | 8,957,686.73 | 8,957,686.73 | |
| Contract performance cost | 85,722,861.49 | 238,513.90 | 85,484,347.59 |
| Deferred expense for mould | 26,939,080.51 | 26,939,080.51 | |
| Total | 1,687,806,533.56 | 80,088,150.85 | 1,607,718,382.71 |
(Continued)
| Item | Opening balance | ||
| Book balance | Inventory price decline provision/contract performance cost impairment provision | Book value | |
| Raw materials | 129,438,627.36 | 8,482,723.94 | 120,955,903.42 |
| Stock commodities | 828,837,153.50 | 51,052,406.21 | 777,784,747.29 |
| Low value consumable articles | 5,564,313.19 | 954,827.34 | 4,609,485.85 |
| Goods in transit | 295,059,984.05 | 8,068,827.90 | 286,991,156.15 |
| Goods-in-process | 5,351,870.75 | 5,351,870.75 | |
| Contract performance cost | 123,275,655.95 | 241,230.88 | 123,034,425.07 |
| Deferred expense for mould | 37,629,831.27 | 37,629,831.27 | |
| Total | 1,425,157,436.07 | 68,800,016.27 | 1,356,357,419.80 |
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
(2) Provision for inventory depreciation and contract performance cost impairment provision
| Item | Opening balance | Increase this period | Decrease this period | Ending balance | ||
| Accrual | Other | Reversal or reselling | Other | |||
| Raw materials | 8,482,723.94 | 3,175,642.94 | 750,728.63 | 10,907,638.25 | ||
| Stock commodities | 51,052,406.21 | 20,087,356.08 | 14,760,739.90 | 285,823.89 | 56,093,198.50 | |
| Goods in transit | 8,068,827.90 | 6,097,340.32 | 2,698,736.58 | 11,467,431.64 | ||
| Low value consumable articles | 954,827.34 | 451,521.74 | 24,980.52 | 1,381,368.56 | ||
| Contract performance cost | 241,230.88 | 129,268.24 | 131,985.22 | 238,513.90 | ||
| Total | 68,800,016.27 | 29,941,129.32 | 18,367,170.85 | 285,823.89 | 80,088,150.85 | |
(3) Accrual for inventory falling price reserves
| Item | Specific basis for determining of net realizable value | Reasons for the reversal or reselling in Current Period |
| Raw materials | Cost is higher than net realizable value (The processed products are decline) | For production |
| Stock commodities | Cost is higher than net realizable value (The market price at period-end fell) | For sale |
| Goods in transit | Cost is higher than net realizable value (The market price at period-end fell) | For sale |
| Low value consumable articles | Cost is higher than net realizable value | Already used |
| Contract performance cost | Engineering construction cost is higher than net realizable value (The processed products are decline) | Already used |
9. Contract assets
(1) Contract assets
| Item | Ending balance | Opening balance | ||||
| Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
| Warranty | 3,122,238.55 | 808,716.15 | 2,313,522.40 | |||
| Total | 3,122,238.55 | 808,716.15 | 2,313,522.40 | |||
(2) Provision for impairment of contract asset in the Period
| Category | Opening balance | Changes this period | Ending balance | |||
| Accrual | Withdrawal or reversal | Resale or write-off | Other decreases | |||
| Bad debt provision | 808,716.15 | 808,716.15 | ||||
| Total | 808,716.15 | 808,716.15 | ||||
10. Other current assets
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
| Item | Ending balance | Opening balance |
| Value-added tax to be deducted | 80,696,124.37 | 110,346,536.34 |
| Advance payment of income tax | 6,655,545.53 | 6,114,297.55 |
| Contract acquisition cost | 3,417,508.13 | 7,740,783.12 |
| Prepaid disability insurance | 39,317.44 | 39,317.44 |
| Prepaid listing fee | 2,517,169.81 | |
| Total | 93,325,665.28 | 124,240,934.45 |
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
11. Long-term equity investment
| Invested enterprise | Opening balance | Changes in Current Period | Ending balance | Ending balance of impairment | |||||||
| Additional investment | Disinvestment | Investment profit and loss confirmed by equity method | Other comprehensive income adjustment | Other changes of equity | Declaration of cash dividends or profits | Provision for impairment | Other | ||||
| Associated companies | |||||||||||
| 1.Hefei Xingmei Assets Management Co., Ltd. | 19,835,366.84 | 4,686,303.37 | 5,069,400.00 | 19,452,270.21 | |||||||
| 2.Sichuan Zhiyijia Network Technology Co., Ltd.note 1 | 34,084,025.62 | 3,133,405.42 | 37,217,431.04 | ||||||||
| 3.Hong Yuan Ground Energy Heat Tech. Co., Ltdnote2 | 20,630,114.17 | -569,440.92 | 20,060,673.25 | ||||||||
| 4.Sichuan Tianyou Guigu Technology Co., Ltdnote3 | 2,974,188.94 | 69,455.43 | 3,043,644.37 | ||||||||
| 5.Chengdu Guigu Environmental Tech. Co., Ltdnote4 | 9,107,964.96 | 33,664.25 | 9,141,629.21 | ||||||||
| 6.ChanghongRuba ElectricCompany(Private)Ltd.note5 | |||||||||||
| 7.Hefei Xinmeitai Energy Technology Co., Ltdnote6 | 1,617,928.00 | 1,617,928.00 | |||||||||
| Total | 86,631,660.53 | 8,971,315.55 | 6,687,328.00 | 88,915,648.08 | |||||||
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
Note 1: on 16 December 2014, the Company executed a joint venture agreement with its controlling shareholder SichuanChanghong Electric Co., LTD, targeting to jointly establish Sichuan Zhiyijia Network Technology Co., Ltd. On 5 January2015, Sichuan Zhiyijia Network Technology Co., Ltd was officially incorporated with registered capital of 50 millionyuan, among which, the Company made contribution of 15 million yuan with shareholding proportion of 30% andSichuan Changhong Electric Co., LTD made contribution of 35 million yuan with shareholding proportion of 70%. In2019, the Company increase capital of 29,087,040.00 yuan (of which: 20 million yuan reckoned in registered capital and9,087,040 yuan reckoned in capital reserves) to Zhiyijia with shareholding ratio up to 50%.Note 2: subsidiary Sichuan Changhong Air Conditioner Co., Ltd (“Changhong Air Conditioner”) and HengyouyuanTechnology Development Group Co., Ltd. (“Hengyouyuan”) cooperated to establish Hongyuan Ground Energy HeatTechnology Co., Ltd. on 28 October 2015. The registered capital of the company is 50 million yuan, among which,Changhong Air Conditioner contributed 24.5 million yuan, accounting for 49% of the registered capital, andHengyouyuan contributed 25.5 million yuan, accounting for 51% of the registered capital.Note 3: Sichuan Tianyou Guigu Technology Co., Ltd. was incorporated on 31 March 2015 with registered capital of 100million yuan. Our subsidiary Changhong Air Conditioner made capital contribution of RMB 25 million in cash,accounting for 25% of the registered capital. Chengdu Jiaodao Property Development Company made capital contributionof 20 million yuan, accounting for 20% of the registered capital. Chengdu Southwest Jiaotong University Industry (Group)Co., Ltd made capital contribution of 20 million yuan, accounting for 20% of the registered capital. Mianyang InvestmentHolding (Group) Co., Ltd made capital contribution of 5 million yuan, accounting for 5% of the registered capital.Shanghai Zhongcheng Xindaya Financial Information Service Co., Ltd made capital contribution of 5 million yuan,accounting for 5% of the registered capital. Jiangsu Runye Investment Co., Ltd. made capital contribution of 10 millionyuan, accounting for 10% of the registered capital. In November 2015, Jiangsu Runye Investment Co., Ltd. transferredall its 10% shares to Sichuan Shuye Jiachen Real Estate Development Co., Ltd.;Chengdu Dongyu Shangmao Co., Ltdmade capital contribution of 15 million yuan, accounting for 15% of the registered capital.In November 2015, ChengduDongyu Shangmao Co., Ltd. transferred all its 15% shares to Chengdu Dongyu No. 1 Enterprise Management ConsultingPartnership (Limited Partnership).In 2016, shareholders meeting of Sichuan Tianyou Guigu Technology Co., Ltd. agreedto reduce the 50 million Yuan capital, the shareholders are reducing the capital by ratio of share-holding. After capitalreduction, subsidiary Changhong Air conditioner contributed 12.5 million Yuan, representing 25% of the registeredcapital.Note 4: Chengdu Guigu Environmental Tech. Co., Ltd. was incorporated on 22 May 2013 with registered capital of 40million yuan. Our subsidiary Changhong Air Conditioner made capital contribution of 10 million yuan, accounting for25% of the registered capital. Chengdu Jiaodao Property Development Company made capital contribution of 8 millionyuan, accounting for 20% of the registered capital. Chengdu Southwest Jiaotong University Industry (Group) Co., Ltdmade capital contribution of 8 million yuan, accounting for 20% of the registered capital. Mianyang Investment Holding(Group) Co., Ltd made capital contribution of 2 million yuan, accounting for 5% of the registered capital. ShanghaiZhongcheng Xindaya Financial Information Service Co., Ltd made capital contribution of 2 million yuan, accounting for5% of the registered capital. Sichuan Shuye Jiachen Property Development Company made capital contribution of 4million yuan, accounting for 10% of the registered capital. Chengdu Dongyu Shangmao Co., Ltd made capitalcontribution of 6 million yuan, accounting for 15% of the registered capitalNote 5: Zhongshan Changhong, a subsidiary of the Company, entered into a supplemental joint venture agreement withRUBA Comprehensive Trading Company in 2017, pursuant to which, both parties agreed to increase capital contributionof US$ 1,130,191.00, among which, Zhongshan Changhong subscribed to contribute US$ 452,076.00 (equivalent to3,001,649.02 yuan on the actual contribution date) according to the original shareholding proportion of 40% and RUBAComprehensive Trading Company subscribed to contribute US$ 678,115.00 according to the original shareholding
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
proportion of 60%.Note 6: Hefei Meiling Solar Energy Technology Co., Ltd. was incorporated on April 18, 2002, with a registered capitalof 10 million yuan. Subsidiary Hefei Meiling Group Holdings Limited invested 3.1114 million yuan, accounting for
31.114% of the registered capital; Hefei Huayi Investment Co., Ltd. invested 4.972 million yuan, accounting for 49.72%of the registered capital; Hefei Xingtai Asset Management Co., Ltd. invested 1.9166 million yuan, accounting for 19.166%of the registered capital.
12. Debt investment
| Item | Ending balance | Opening balance | ||||
| Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
| negotiable large certificate of deposit | 291,305,319.44 | 291,305,319.44 | ||||
| Total | 291,305,319.44 | 291,305,319.44 | ||||
13. Other non-current financial assets
| Item | Ending balance | Opening balance |
| Sichuan Changhong Group Finance Co., Ltd. | 532,961,488.43 | 532,961,488.43 |
| Huishang Bank Co., Ltd. | 5,000,000.00 | 5,000,000.00 |
| Hongyun Fund | 38,239,153.07 | 44,018,952.27 |
| Total | 576,200,641.50 | 581,980,440.70 |
14. Investment real estate
(1) Investment real estate measured at costs
| Item | House and buildings | Total |
| I. Original book value | ||
| 1.Opening balance | 60,688,532.10 | 60,688,532.10 |
| 2.Increase this period | ||
| 3.Decrease this period | ||
| 4.Ending balance | 60,688,532.10 | 60,688,532.10 |
| II. Accumulated depreciation and accumulated amortization | ||
| 1.Opening balance | 7,538,597.65 | 7,538,597.65 |
| 2.Increase this period | 958,748.77 | 958,748.77 |
| (1) Provision or amortization | 958,748.77 | 958,748.77 |
| 3.Decrease this period | ||
| 4.Ending balance | 8,497,346.42 | 8,497,346.42 |
| III. Impairment loss | ||
| IV. Book value |
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
| Item | House and buildings | Total |
| 1. Ending book value | 52,191,185.68 | 52,191,185.68 |
| 2. Opening book value | 53,149,934.45 | 53,149,934.45 |
(2) No investment real estate measured by fair value at period-end.
(3) Particular about mortgage of investment property at period-end
| Name | Original book value | Accumulated depreciation | Impairment provision | Book value |
| House and buildings | 5,795,017.72 | 2,426,406.41 | 3,368,611.31 |
(4) Investment real estate without property certification held
| Item | Book value | Reasons for failing to complete property rights certificate |
| J04workshop | 28,103,467.30 | Related property rights in procedure |
| J03workshop | 18,040,910.63 | Related property rights in procedure |
| J20 air compressor station workshop | 1,192,213.84 | Related property rights in procedure |
| J18 opening and closing office | 551,938.73 | Related property rights in procedure |
| Total | 47,888,530.50 |
15. Fixed assets
| Item | Book value at period-end | Book value at period-begin |
| Fixed assets | 2,190,629,094.63 | 2,227,247,182.81 |
| Disposal of fixed assets | 75,875,517.11 | 75,875,517.11 |
| Total | 2,266,504,611.74 | 2,303,122,699.92 |
13.1 Fixed assets
(1) Fixed assets
| Item | House and buildings | Machinery equipment | Transport equipment | Other equipment | Total |
| I. Original book value | |||||
| 1.Opening balance | 1,688,670,197.57 | 1,768,708,568.16 | 34,465,918.34 | 220,259,731.03 | 3,712,104,415.10 |
| 2.Increase this period | 1,527,440.22 | 62,840,181.44 | 821,337.36 | 18,511,910.88 | 83,700,869.90 |
| (1) Purchase | 3,338,545.54 | 334,766.92 | 4,235,165.59 | 7,908,478.05 | |
| (2) Construction in progress transfer-in | 1,527,440.22 | 59,486,692.69 | 486,570.44 | 14,246,357.45 | 75,747,060.80 |
| (3) Inventory transfer in for own use | 14,943.21 | 30,387.84 | 45,331.05 | ||
| 3.Decrease this period | 5,980,029.39 | 39,198,584.99 | 1,730,980.47 | 969,718.01 | 47,879,312.86 |
| (1) Dispose or retirement | 5,603,921.90 | 34,173,122.18 | 1,632,488.00 | 714,514.05 | 42,124,046.13 |
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
| Item | House and buildings | Machinery equipment | Transport equipment | Other equipment | Total |
| (2) Transfer to construction in progress | 5,025,462.81 | 5,025,462.81 | |||
| (3) decrease in exchange rate changes | 98,492.47 | 255,203.96 | 353,696.43 | ||
| (4) Temporary estimated decrease | 376,107.49 | 376,107.49 | |||
| 4.Ending balance | 1,684,217,608.40 | 1,792,350,164.61 | 33,556,275.23 | 237,801,923.90 | 3,747,925,972.14 |
| II. Accumulated depreciation | |||||
| 1.Opening balance | 404,141,977.35 | 959,058,685.14 | 22,160,271.70 | 98,094,721.61 | 1,483,455,655.80 |
| 2.Increase this period | 26,975,224.20 | 73,994,008.09 | 1,415,411.88 | 9,186,931.08 | 111,571,575.25 |
| （1）Accrual | 26,975,224.20 | 73,994,008.09 | 1,415,411.88 | 9,186,931.08 | 111,571,575.25 |
| 3.Decrease this period | 2,650,171.03 | 33,470,253.50 | 1,625,490.89 | 834,083.11 | 38,579,998.53 |
| (1) Dispose or retirement | 2,650,171.03 | 32,083,131.27 | 1,557,800.57 | 661,820.47 | 36,952,923.34 |
| (2) Transfer to construction in progress | 1,387,122.23 | 1,387,122.23 | |||
| (3) decrease in exchange rate changes | 67,690.32 | 172,262.64 | 239,952.96 | ||
| 4.Ending balance | 428,467,030.52 | 999,582,439.73 | 21,950,192.69 | 106,447,569.58 | 1,556,447,232.52 |
| III. Impairment loss | |||||
| 1.Opening balance | 1,260,961.87 | 140,614.62 | 1,401,576.49 | ||
| 2.Increase this period | |||||
| 3.Decrease this period | 551,931.50 | 551,931.50 | |||
| (1) Dispose or retirement | 551,931.50 | 551,931.50 | |||
| 4.Ending balance | 709,030.37 | 140,614.62 | 849,644.99 | ||
| IV. Book value | |||||
| 1. Ending book value | 1,255,750,577.88 | 792,058,694.51 | 11,606,082.54 | 131,213,739.70 | 2,190,629,094.63 |
| 2. Opening book value | 1,284,528,220.22 | 808,388,921.15 | 12,305,646.64 | 122,024,394.80 | 2,227,247,182.81 |
The new fixed assets in this period mainly due to the 75,747,060.80 yuan transfer from construction in process;decrease of the fixed assets in Current Period mainly including assets dispose for retirement.
(2) No fixed assets temporary idle at period-end.
(3) Fixed assets for collateral at period-end
| Name | Original book value | Accumulated depreciation | Impairment provision | Book value |
| House and buildings | 475,337,823.38 | 132,590,551.27 | 342,747,272.11 |
(4) Fixed assets leased through operating lease at period-end
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
| Item | Original book value | Accumulated depreciation | Impairment provision | Book value |
| House and buildings | 57,978,587.55 | 17,205,319.38 | 40,773,268.17 | |
| Machinery equipment | 32,253,032.17 | 11,990,197.80 | 20,262,834.37 | |
| Other equipment | 3,142,260.30 | 1,794,727.88 | 1,347,532.42 | |
| Total | 93,373,880.02 | 30,990,245.06 | 62,383,634.96 |
(5) Fixed assets without property certificate
| Item | Book value | Reason of not complete the property certificate |
| Testing and experiment center building | 37,912,934.58 | Related property rights in procedure |
| J07 electrical workshop | 33,100,480.42 | Related property rights in procedure |
| J02workshop | 29,714,921.96 | Related property rights in procedure |
| J01workshop | 27,541,882.00 | Related property rights in procedure |
| J05 evaporator and condenser workshop | 26,165,222.29 | Related property rights in procedure |
| II section canteen of living area | 20,201,985.47 | Related property rights in procedure |
| J06 central air-conditioner workshop | 16,740,068.06 | Related property rights in procedure |
| J50finished product warehouse | 15,815,784.10 | Related property rights in procedure |
| J51finished product warehouse | 15,307,197.71 | Related property rights in procedure |
| J53finished product warehouse | 11,763,841.04 | Related property rights in procedure |
| J54finished product warehouse | 10,940,337.26 | Related property rights in procedure |
| J52finished product warehouse | 10,923,969.80 | Related property rights in procedure |
| J55finished product warehouse | 10,021,406.73 | Related property rights in procedure |
| J56finished product warehouse | 10,021,406.73 | Related property rights in procedure |
| J09raw material warehouse | 5,964,585.42 | Related property rights in procedure |
| J10raw material warehouse | 4,659,638.21 | Related property rights in procedure |
| J11raw material warehouse | 4,576,541.18 | Related property rights in procedure |
| 4# makeshift shelter | 4,448,271.27 | Related property rights in procedure |
| J08 packing materials warehouse | 4,338,927.47 | Related property rights in procedure |
| J15 house of refrigerant forklift | 1,259,120.19 | Related property rights in procedure |
| J17 chemical storage | 1,236,545.52 | Related property rights in procedure |
| J16 chemical storage | 1,130,705.63 | Related property rights in procedure |
| J19 main guard room | 310,812.99 | Related property rights in procedure |
| J19A guard room | 196,303.42 | Related property rights in procedure |
| J19D guard room | 143,640.17 | Related property rights in procedure |
| J19E guard room | 143,640.17 | Related property rights in procedure |
| Total | 304,580,169.79 |
(7) No fixed assets held for sale at period-end
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
15.2 Disposal of fixed assets
| Item | Ending balance | Opening balance | Reasons for disposal transferred |
| Relevant assets disposal for reserved lands | 75,875,517.11 | 75,875,517.11 | Relocation for land reserve |
Pursuant to the urban planning requirements of the People’s Government of Hefei city, Hefei Land Reserve Center plansto purchase and store the land use right of an integrated economic development zone of the Company located at Longgangof Hefei with an area of 103,978.9 sq.m. (Approximately 155.9684 mu, Land Use Right Certificate No.: Dong Guo Yong(2004) Zi No. 0200, the stated use of the land is for industrial purpose). The estimated consideration for purchasing andstorage is RMB74.48 million. The land is mainly used for the Company’s warehouse, product finishing workshop andthe factory of Zhongke Meiling. Pursuant to the purchasing and storage requirements of land use right, the land will bepurchased and stored with vacant possession. In April 2013, the Company completed the relocation of occupants of thepremises, and the net fixed assets in relation to the land will transfer as disposal, accounting treatment will be conduct inline with relevant rules upon receiving of the relocation compensation.
Pursuant to the urban planning requirements of Hefei Municipal Government and the Government of Feidong county,the land reserve center of Feidong county will purchase and store the land use right of an economic development zonelocated at Feidong county, Hefei city, which is owned by the Company’s subordinate companies, Equator Electric andEquator Home Appliance, respectively, with an area of 19,245.09 sq.m. (Approximately 28.87 mu, Land Use RightCertificate No.: Dong Guo Yong (2008) No. 0366, the stated use of the land is for industrial purpose) and an area of46,161.9 sq.m. (Approximately 69.24 mu, Land Use Right Certificate No.: Dong Guo Yong (2008) No. 0367, the stateduse of the land is for industrial purpose). The total consideration for purchasing and storage is approximately 36 millionyuan, of which the consideration for the land use right owned by Equator Electric and Equator Home Appliance isapproximately 10.59 million yuan and 25.41 million yuan, respectively. The Company has completed the relocation ofoccupants of the premises, and the net fixed assets in relation to the land will transfer as disposal, accounting treatmentwill be conduct in line with relevant rules upon receiving of the relocation compensation.
No impairment of relevant assets disposal for reserved lands at period-end.
16. Construction in progress
| Item | Ending balance | Opening balance |
| Construction in progress | 103,923,104.08 | 98,469,862.45 |
| Total | 103,923,104.08 | 98,469,862.45 |
(1) Details of construction in progress
| Item | Ending balance | Opening balance | ||||
| Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
| Front-end expansion project of Hefei base with an annual output of 10 million refrigerator cabinets | 22,408,137.87 | 22,408,137.87 | 16,686,639.69 | 16,686,639.69 | ||
| Industrial Internet Changhong Meiling Promotion Project | 9,609,549.93 | 9,609,549.93 | 10,480,730.43 | 10,480,730.43 | ||
| Meiling extrusion line relocation and capacity expansion project | 7,380,555.55 | 7,380,555.55 | 3,875,215.73 | 3,875,215.73 | ||
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
| Item | Ending balance | Opening balance | ||||
| Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
| Comprehensive renovation project of mixed flow of rainwater and sewage in freezer park and living area | 6,598,693.27 | 6,598,693.27 | 4,385,756.91 | 4,385,756.91 | ||
| Blister production line construction | 5,604,355.20 | 5,604,355.20 | ||||
| Freeze lining structure changed to bottom package side | 2,747,345.12 | 2,747,345.12 | ||||
| The third floor testing and packaging line technical transformation project | 2,729,203.56 | 2,729,203.56 | 2,707,964.62 | 2,707,964.62 | ||
| Liquid nitrogen tank production line construction | 2,580,258.29 | 2,580,258.29 | 6,778,105.41 | 6,778,105.41 | ||
| Efficiency improvement of refrigerator cabinet | 2,362,746.25 | 2,362,746.25 | 4,704,867.17 | 4,704,867.17 | ||
| Y21 manufacturing system automation (Phase I) | 2,198,496.56 | 2,198,496.56 | 13,973,307.43 | 13,973,307.43 | ||
| Multi-door shell molding line | 2,163,716.89 | 2,163,716.89 | ||||
| Supporting production equipment of washing machine | 2,144,601.77 | 2,144,601.77 | ||||
| Efficiency improvement for 2022 in manufacturing center | 1,991,238.96 | 1,991,238.96 | ||||
| Tank replacement and testing | 1,656,656.37 | 1,656,656.37 | ||||
| Accident response pool construction | 1,389,325.45 | 1,389,325.45 | ||||
| Technical transformation project of Zhongshan Changhong | 787,667.26 | 787,667.26 | 4,530,389.50 | 4,530,389.50 | ||
| 2022 capacity and capability improvement of the manufacturing system in Air Conditioning Company | 173,455.15 | 173,455.15 | 6,419,964.72 | 6,419,964.72 | ||
| Overseas product upgrade supporting box shell line, door shell line and some old product competitiveness improvement projects | 3,731,036.22 | 3,731,036.22 | ||||
| Washing machine business unit MES system online project | 2,457,735.83 | 2,457,735.83 | ||||
| Meiling PLM Project | 1,636,792.46 | 1,636,792.46 | ||||
| Other petty projects | 29,397,100.63 | 29,397,100.63 | 16,101,356.33 | 16,101,356.33 | ||
| Total | 103,923,104.08 | 103,923,104.08 | 98,469,862.45 | 98,469,862.45 | ||
(2) Changes in significant construction in progress
| Projects | Book balance at period-begin | Increase in Current Period | Transfer to fixed assets in Current Period | Other decrease | Book balance at period-end | Source of funds |
| Front-end expansion project of Hefei base with an annual output of 10 million refrigerator | 16,686,639.69 | 7,606,453.91 | 1,884,955.73 | 22,408,137.87 | Self-raised |
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
| Projects | Book balance at period-begin | Increase in Current Period | Transfer to fixed assets in Current Period | Other decrease | Book balance at period-end | Source of funds |
cabinets
cabinets
(Continued)
| Projects | Budget (in 10 thousand Yuan) | Proportion of project investment in budget | Progress | Accumulated amount of interest capitalization | including: interest capitalized amount of Current Period | Interest capitalization rate of Current Period |
| Front-end expansion project of Hefei base with an annual output of 10 million refrigerator cabinets | 4,121.24 | 72.58% | 80.00% |
17. Right-of-use assets
18. Intangible assets
| Item | House building | Total |
| I. Original book value | ||
| 1.Opening balance | 54,071,205.97 | 54,071,205.97 |
| 2.Increase this period | 1,089,224.86 | 1,089,224.86 |
| (1) Rent in | 1,089,224.86 | 1,089,224.86 |
| 3.Decrease this period | ||
| 4.Ending balance | 55,160,430.83 | 55,160,430.83 |
| II. Accumulated depreciation | ||
| 1.Opening balance | 8,703,287.66 | 8,703,287.66 |
| 2.Increase this period | 6,170,422.64 | 6,170,422.64 |
| (1) Accrual | 6,170,422.64 | 6,170,422.64 |
| 3.Decrease this period | ||
| 4.Ending balance | 14,873,710.30 | 14,873,710.30 |
| III. Provision for impairment | ||
| 1.Opening balance | ||
| 2.Increase this period | ||
| 3.Decrease this period | ||
| 4.Ending balance | ||
| IV. Book value | ||
| 1. Ending book value | 40,286,720.53 | 40,286,720.53 |
| 2. Opening book value | 45,367,918.31 | 45,367,918.31 |
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
(1) Intangible assets
| Item | Land use right | Trademark special right | Non-patent technology | Other | Total |
| I. Original book value | |||||
| 1.Opening balance | 869,724,297.57 | 283,292,439.34 | 549,144,800.67 | 137,253,797.42 | 1,839,415,335.00 |
| 2.Increase this period | 25,171,017.17 | 13,983,835.08 | 39,154,852.25 | ||
| (1) Purchase | 693,451.31 | 693,451.31 | |||
| (2) Internal research | 25,171,017.17 | 13,290,383.77 | 38,461,400.94 | ||
| 3.Decrease this period | 4,925,680.89 | 10,362,539.53 | 15,288,220.42 | ||
| (1) Disposal | 4,925,680.89 | 3,280,328.88 | 8,206,009.77 | ||
| (1) Other decreases | 7,082,210.65 | 7,082,210.65 | |||
| 4.Ending balance | 864,798,616.68 | 283,292,439.34 | 574,315,817.84 | 140,875,092.97 | 1,863,281,966.83 |
| II. Accumulated amortization | |||||
| 1.Opening balance | 198,473,939.86 | 283,292,439.34 | 348,547,882.12 | 27,185,807.78 | 857,500,069.10 |
| 2.Increase this period | 9,213,047.64 | 46,299,922.34 | 19,395,874.81 | 74,908,844.79 | |
| （1）Accrual | 9,213,047.64 | 46,299,922.34 | 19,395,874.81 | 74,908,844.79 | |
| 3.Decrease this period | 1,924,297.31 | 5,750,495.00 | 7,674,792.31 | ||
| (1) Disposal | 1,924,297.31 | 3,280,328.88 | 5,204,626.19 | ||
| (2) Other decreases | 2,470,166.12 | 2,470,166.12 | |||
| 4.Ending balance | 205,762,690.19 | 283,292,439.34 | 394,847,804.46 | 40,831,187.59 | 924,734,121.58 |
| III. Provision for impairment | |||||
| 1.Opening balance | 24,003,670.24 | 4,508,495.33 | 28,512,165.57 | ||
| 2.Increase this period | |||||
| 3.Decrease this period | |||||
| 4.Ending balance | 24,003,670.24 | 4,508,495.33 | 28,512,165.57 | ||
| IV. Book value | |||||
| 1. Ending book value | 659,035,926.49 | 155,464,343.14 | 95,535,410.05 | 910,035,679.68 | |
| 2. Opening book value | 671,250,357.71 | 176,593,248.31 | 105,559,494.31 | 953,403,100.33 |
The intangible assets resulted from internal research takes 2.06% of the balance of intangible assets atperiod-end
(2) No land use right without property certification done at period-end
(3) Up to end of June 2022, mortgage of intangible assets is as follows:
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
| Name | Property certificate serials | Area(M2) | Net book value | Note |
| Land use right | HGYJCZi No.: 0121 | 27,120.22 | 16,765,001.87 | |
| Land use right | Wan (2019) Property right of Hefei No.: 1148244/1148249/1148243/1148240/1148248/1148246/1148241/1148238/1149101/1148242/1148245/1148239/1148237/1148250/1148247/1149102 | 477,550.03 | 229,136,021.56 | |
| Land use right | Wan (2019) Property right of Feixi County No.: 0061435/0061445 | 33,383.10 | 13,039,829.51 | |
| Land use right | Wan (2019) Property right of Feixi County No.: 0061456/0061447/0061438/0061440/0061452/0061450/0061430/0061657 | 82,850.51 | 17,969,112.49 | |
| Total | 620,903.86 | 276,909,965.43 | ||
19. Development expense
| Item | Opening balance | Increase this period | Decrease this period | Ending balance | |||
| Internal development expenditure | Other | Included in current profits and losses | Confirmed as intangible assets | Other | |||
| Technology development for Air-conditioner | 39,938,415.03 | 41,134,297.63 | 4,073,227.83 | 25,421,047.00 | 51,578,437.83 | ||
| Technology development for refrigerator | 47,790,575.83 | 54,891,134.71 | 3,594,169.74 | 13,040,353.94 | 86,047,186.86 | ||
| Total | 87,728,990.86 | 96,025,432.34 | 7,667,397.57 | 38,461,400.94 | 137,625,624.69 | ||
20. Goodwill
(1) Original value of goodwill
| Invested enterprise | Opening balance | Increase this period | Decrease this period | Ending balance | ||
| Formation from enterprise merger | Other | Formation from enterprise merger | Other | |||
| Hefei Meiling Group Holdings Limited | 3,553,367.77 | 3,553,367.77 | ||||
| Total | 3,553,367.77 | 3,553,367.77 | ||||
(2) Impairment loss of goodwill
| Invested enterprise | Opening balance | Increase this period | Decrease this period | Ending balance | ||
| Accrual | Other | Accrual | Other | |||
| Hefei Meiling Group Holdings Limited | 3,553,367.77 | 3,553,367.77 | ||||
| Total | 3,553,367.77 | 3,553,367.77 | ||||
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
Note: The Company’s goodwill has been fully accrued for impairment reserves at period-end.
21. Long-term prepaid expenses
| Item | Opening balance | Increase this period | Amortization for the period | Other decreases | Ending balance |
| Engineering renovation expenses | 381,978.97 | 19,080.92 | 362,898.05 | ||
| Total | 381,978.97 | 19,080.92 | 362,898.05 |
22. Deferred tax assets and deferred tax liabilities
(1) Deferred income tax assets without the offset
| Item | Ending balance | Opening balance | ||
| Deductible temporary difference | Deferred income tax assets | Deductible temporary difference | Deferred income tax assets | |
| Deferred income tax assets recognized from assets impairment | 167,988,006.74 | 25,269,308.51 | 145,988,355.30 | 21,966,046.25 |
| Deferred income tax assets recognized from accrual liability | 11,912,507.94 | 1,786,876.19 | 11,363,601.65 | 1,704,540.25 |
| Deferred income tax assets recognized from Dismission welfare | 9,745,724.62 | 1,461,858.69 | 11,268,982.33 | 1,690,347.35 |
| Deferred income tax assets recognized from deferred income | 99,391,000.78 | 14,908,650.12 | 110,534,463.54 | 16,580,169.53 |
| Deferred income tax assets recognized from ir-reparable losses | 834,217,626.07 | 125,132,643.91 | 695,409,549.32 | 104,311,432.40 |
| Accrued income tax assets | 5,727,967.73 | 862,496.04 | 8,238,783.30 | 1,235,817.50 |
| Other | 24,868,214.11 | 3,730,232.12 | ||
| Total | 1,153,851,047.99 | 173,152,065.58 | 982,803,735.44 | 147,488,353.28 |
The Company’s long-term equity investment impairment provisions are the investments in its subsidiary Meiling CandyWashing Machine Co., Ltd., expected to be cancelled in 2022, and the Company also confirmed deferred income taxassets while confirming the impairment provisions. The subsidiaries have unrecovered losses, at the consolidation level,the deferred income tax assets recognized in the Company’s long-term equity investment impairment provisions areadjusted to be the deferred income tax assets generated from the recoverable losses.
(2) Deferred income tax liabilities without the offset
| Item | Ending balance | Opening balance | ||
| Taxable temporary differences | Deferred income tax liability | Taxable temporary differences | Deferred income tax liability | |
| Recognized by fixed assets depreciation | 21,257,933.76 | 3,188,690.06 | 23,595,650.26 | 3,539,347.53 |
| Recognized by changes in fair value | 38,003,012.26 | 5,700,451.84 | 40,873,919.41 | 6,131,087.92 |
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
| Item | Ending balance | Opening balance | ||
| Taxable temporary differences | Deferred income tax liability | Taxable temporary differences | Deferred income tax liability | |
| Total | 59,260,946.02 | 8,889,141.90 | 64,469,569.67 | 9,670,435.45 |
(3) Details of unrecognized deferred income tax assets
| Item | Ending balance | Opening balance |
| Deductible temporary difference | 108,844,382.55 | 94,823,765.42 |
| Deductible loss | 980,228,966.20 | 1,075,371,859.07 |
| Total | 1,089,073,348.75 | 1,170,195,624.49 |
23. Other non-current assets
| Item | Ending balance | Opening balance |
| Prepaid equipment, engineering, etc. | 999,030.66 | 3,087,780.59 |
| Total | 999,030.66 | 3,087,780.59 |
24. Short-term loans
| Category | Ending balance | Opening balance |
| Guaranteed loan | 35,000,000.00 | 5,000,000.00 |
| Loan in credit | 1,052,040,918.37 | 615,000,000.00 |
| Interest payable | 250,527.78 | 2,874,652.77 |
| Total | 1,087,291,446.15 | 622,874,652.77 |
Short-term loans at Current Period-end:
1) The Company entered into a Loan Contract with Hefei Luyang Branch of Hangzhou Bank Co., Ltd. with 364 days interm. Term of borrowing is from 16 July 2021 to 15 July 2022. The interest rate is the quoted market rate for one yearloans minus 55bp, floating on an annual basis and borrowing amounted to 10,000,000.00 yuan.
2) The Company entered into aBorrowing Contract of Working Capital Loans with Hefei Branch of China MinshengBank Co., Ltd. with 1 year in term. Term of borrowing is from 27 August 2021 to 27 August 2022. Fixed rate of 3.20%,the loan amount is 50,000,000.00 yuan.
3) The Company entered into a Master Agreement on Domestic Letter of Credit Financing with Hefei Branch of IndustrialBank Co., Ltd. with 364 days in term. Term of borrowing is from 17 December 2021 to 16 December 2022. Fixed rateof 2.90%, the loan amount is 100,000,000.00 yuan.
4) The Company entered into Contract for the assignment of the seller’s claims without recourse (domestic forfaitingbusiness) under a domestic letter of credit with Hefei Branch of China Everbright Bank Co., Ltd. with 357 days in term.Term of borrowing is from 24 December 2021 to 16 December 2022. Fixed rate of 2.9%, the loan amount is180,000,000.00 yuan.
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
5) The Company entered into a Master Agreement on Domestic Letter of Credit Financing with Hefei Branch of ChinaMinsheng Bank Co., Ltd. with 349 days in term. Term of borrowing is from 29 December 2021 to 13 December 2022.Fixed rate of 2.20%, the loan amount is 100,000,000.00 yuan.
6) The Company entered into a Master Agreement on Domestic Letter of Credit Financing with Hefei Branch of IndustrialBank Co., Ltd. with 179 days in term. Term of borrowing is from 28 February 2022 to 26 August 2022. Fixed rate of
2.70%, the loan amount is 30,000,000.00 yuan.
7)The Company entered into a Buyer’s Interest Payment Agreement under Domestic Letter of Credit with Hefei Branchof China Guangfa Bank. The contract signed with 182 days in term and contractual borrowing is from March 15, 2022to September 13, 2022, borrowing amounted to 30,000,000.00 yuan with a fixed interest rate of 2.50%.
8） The Company entered into the Domestic Letter of Credit Opening Contract of Hangzhou Bank with Hefei Branchof HZ Bank. The contract signed with 180 days in term and borrowing is from March 17, 2022 to September 13, 2022,borrowing amounted to 25,000,000.00 yuan with a fixed interest rate of 2.58%.
9) The Company entered into Application for opening a domestic letter of credit with Anhui Branch of Bank of ChinaLimited with 180 days in term. Term of borrowing is from 17 March 2022 to 13 September 2022. Fixed interest rate of
2.60%, the loan amount is 10,000,000.00 yuan.
10）The Company entered into the Borrowing Contract of RMB Working Capital Loan with Hefei Luyang Branch ofChina Construction Bank. The contract signed with one year in term and borrowing is from March 30, 2022 to March 29,2023, borrowing amounted to 100,000,000.00 yuan with a fixed interest rate of 3.30%.
11)The Company entered into the Opening Line Contract of Domestic L/C with Hefei Baohe District Branch ofAgricultural Bank of China. The contract signed with 177 days in term and borrowing is from April 2, 2022 to September26, 2022, borrowing amounted to 50,000,000.00 yuan with a fixed interest rate of 2.65%.
12)The Company entered into the Cooperation Agreement on Opening the Domestic L/C with Hefei Branch of ChinaMerchants Bank. The contract signed with 178 days in term and borrowing is from April 19, 2022 to October 14, 2022,borrowing amounted to 20,000,000.00 yuan with a fixed interest rate of 2.66%.
13) The Company entered into Weishang Bank Domestic Letter of Credit Forfaiting Business Contract with HefeiEconomic Development Zone Branch of Huishang Bank Co., Ltd. with 180 days in term. Term of borrowing is from 20April 2022 to 17 October 2022. Fixed interest rate of 2.70%, the loan amount is 50,000,000.00 yuan.
14)The Company entered into the Agreement on Opening the L/C Business with Hefei Branch of SPD Bank. The contractsigned with 180 days in term and borrowing is from April 21, 2022 to October 18, 2022, borrowing amounted to25,000,000.00 yuan with a fixed interest rate of 2.60%.
15) The Company entered into a Master Agreement on Domestic Letter of Credit Financing with Hefei Branch of ChinaMinsheng Bank Co., Ltd. with 181 days in term. Term of borrowing is from 22 April 2022 to 20 October 2022. Fixedrate of 2.10%, the loan amount is 50,000,000.00 yuan.
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
16) The Company entered into the Contract of Opening the Domestic L/C with Anhui Branch of Bank of Communications.The contract signed with 180 days in term and borrowing is from May 26, 2022 to November 22, 2022, borrowingamounted to 50,040,918.37 yuan with a fixed interest rate of 2.05%.
17)The Company entered into the Issuing Contract of Domestic L/C with Hefei Branch of Postal Savings Bank of China.The contract signed with 182 days in term and borrowing is from May 30, 2022 to November 28, 2022, borrowingamounted to 50,000,000.00 yuan with a fixed interest rate of 1.30%.
18) The Company entered into a Buyer’s Interest Payment Agreement under Domestic Letter of Credit with Hefei Branchof China Guangfa Bank. The contract signed with 180 days in term and contractual borrowing is from June 23, 2022 toDecember 20, 2022, borrowing amounted to 30,000,000.00 yuan with a fixed interest rate of 1.98%.
19)The Company entered into an Agency Cooperation Agreement of Domestic L/C with Hefei Branch of Ping An Bank.The contract signed with 180 days in term and contractual borrowing is from June 24, 2022 to December 21, 2022,borrowing amounted to 50,000,000.00 yuan with a fixed interest rate of 2.10%.
20) The Company entered into a Master Agreement on Domestic Letter of Credit Financing with Hefei Branch ofIndustrial Bank Co., Ltd. with 179 days in term. Term of borrowing is from 27 June 2022 to 23 December 2022. Fixedrate of 2.05%, the loan amount is 40,000,000.00 yuan.
21) The Company entered into Application for opening a domestic letter of credit with Anhui Branch of Bank of ChinaLimited with 180 days in term. Term of borrowing is from 30 June 2022 to 27 December 2022. Fixed annual interest rateof 2.23%, the loan amount is 2,000,000.00 yuan.
22) Subsidiary Hefei Changhong Meiling Life Appliances Co., Ltd entered into the Borrowing Contract with HefeiLuyang Branch of HZ Bank. The contract signed with 364 days in term and borrowing is from March 23, 2022 to March22, 2023, borrowing amounted to 20,000,000.00 yuan with a fixed loan APR of 3.45% which is guaranteed by theCompany.
23)Subsidiary Hefei Changhong Meiling Life Appliances Co., Ltd entered into the Issuing Agreement on Domestic L/Cwith Huining Road Branch of Hefei Science & Technology Rural Commercial Bank. The borrowing term is from March24, 2022 to December 27, 2022, borrowing amounted to 10,000,000.00 yuan with a fixed loan APR of 3.65% which isguaranteed by the Company.
24)Anhui Tuoxing Technology Co., Ltd.- the wholly owned subsidiary of Zhongke Meiling Cryogenic Technology Co.,Ltd(subsidiary of the Company) obtained a secured loans from Hefei Feicui Road Branch of Bank of China. Theborrowing term is from June 27, 2022 to June 27, 2023, borrowing amounted to 5,000,000.00 yuan with a fixed rate of
3.30% which is guaranteed by the subsidiary-Zhongke Meiling Cryogenic Technology Co., Ltd.
25. Trading financial liability
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
| Name | Ending balance | Opening balance |
| Trading financial liability | 38,929,244.41 | 12,304,272.41 |
| Including: Derivative financial liability | 38,929,244.41 | 12,304,272.41 |
26. Note payable
| Item | Ending balance | Opening balance |
| Bank acceptance | 4,356,012,661.73 | 4,663,885,311.94 |
| Trade acceptance | 146,907,573.73 | 175,952,005.84 |
| Total | 4,502,920,235.46 | 4,839,837,317.78 |
27. Account payable
(1) Account payable
| Item | Ending balance | Amount at year-begin |
| Total | 3,832,859,258.27 | 2,299,103,796.88 |
| Including: Amount aged over 1 year | 63,148,576.16 | 94,640,539.62 |
(2) No major account payable with over one year book age at period-end.
28. Contract liabilities
| Item | Ending balance | Opening balance |
| Total | 351,317,980.38 | 515,004,115.23 |
| Including: Amount aged over 1 year | 50,182,899.32 | 17,740,130.48 |
29. Wages payable
(1) Category
| Item | Opening balance | Increase this period | Decrease this period | Ending balance |
| Short-term compensation | 241,024,057.25 | 788,097,986.06 | 815,373,920.31 | 213,748,123.00 |
| After-service welfare- defined contribution plans | 2,495,637.65 | 55,818,890.81 | 53,551,087.07 | 4,763,441.39 |
| Dismiss welfare | 3,524,726.66 | 2,590,110.44 | 2,233,693.58 | 3,881,143.52 |
| Total | 247,044,421.56 | 846,506,987.31 | 871,158,700.96 | 222,392,707.91 |
(2) Short-term compensation
| Item | Opening balance | Increase this period | Decrease this period | Ending balance |
| Wages, bonuses, allowances and subsidies | 234,141,842.08 | 706,008,342.70 | 733,642,135.12 | 206,508,049.66 |
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
| Item | Opening balance | Increase this period | Decrease this period | Ending balance |
| Welfare for workers and staff | 100,023.78 | 21,013,093.97 | 20,948,269.79 | 164,847.96 |
| Social insurance | 1,151,987.24 | 24,350,886.16 | 24,169,042.30 | 1,333,831.10 |
| Including: Medical insurance | 1,080,480.56 | 22,933,010.61 | 22,864,576.83 | 1,148,914.34 |
| Work injury insurance | 10,353.31 | 1,384,970.71 | 1,293,906.58 | 101,417.44 |
| Maternity insurance | 61,153.37 | 32,904.84 | 10,558.89 | 83,499.32 |
| Housing accumulation fund | 4,861,802.68 | 35,184,312.73 | 34,985,686.89 | 5,060,428.52 |
| Labor union expenditure and personnel education expense | 768,401.47 | 1,541,350.50 | 1,628,786.21 | 680,965.76 |
| Total | 241,024,057.25 | 788,097,986.06 | 815,373,920.31 | 213,748,123.00 |
(3) Defined contribution plans
| Item | Opening balance | Increase this period | Decrease this period | Ending balance |
| Basic endowment insurance | 759,812.44 | 53,845,096.30 | 51,671,296.45 | 2,933,612.29 |
| Unemployment insurance | 1,735,825.21 | 1,973,794.51 | 1,879,790.62 | 1,829,829.10 |
| Total | 2,495,637.65 | 55,818,890.81 | 53,551,087.07 | 4,763,441.39 |
30. Tax payable
| Item | Ending balance | Opening balance |
| Value-added tax | 83,798,823.91 | 93,229,596.44 |
| Enterprise income tax | 6,116,146.52 | 3,665,806.85 |
| Individual income tax | 2,189,279.19 | 2,593,701.11 |
| Urban maintenance and construction tax | 11,824,224.07 | 8,227,864.32 |
| Real estate tax | 3,777,438.11 | 3,758,773.24 |
| Land use tax | 1,430,344.51 | 1,550,831.89 |
| Educational surtax | 8,535,924.18 | 4,932,682.07 |
| Stamp tax | 2,826,337.46 | 3,798,892.56 |
| Construction fund of Water Conservancy Projects | 648,405.12 | 606,448.87 |
| Treatment fund for abandon electrics & electronics | 28,410,536.00 | 18,489,806.00 |
| Other | 1,589.26 | 1,020,458.53 |
| Total | 149,559,048.33 | 141,874,861.88 |
31. Other account payable
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
| Item | Ending balance | Opening balance |
| Dividend payable | 19,793,050.41 | 4,753,764.56 |
| Other account payable | 883,985,891.19 | 746,699,003.44 |
| Total | 903,778,941.60 | 751,452,768.00 |
31.1 Dividends payable
| Item | Ending balance | Opening balance |
| Sichuan Changhong Electric Co., Ltd. | 12,422,886.20 | |
| Hefei Industry Investment Holding (Group) Co., Ltd. | 2,391,170.05 | |
| China Life Insurance (Group) Company | 288,404.82 | 288,404.82 |
| The People’s Insurance Company (Group) of China Limited | 432,607.23 | 432,607.23 |
| BOC- Fullgoal Tianyi Securities Investment Fund | 153,697.50 | 153,697.50 |
| Hefei Branch of BOC | 391,245.50 | 360,506.00 |
| Hefei collective industry association | 391,244.89 | 360,505.44 |
| Entrust Investment Wuhu of Provincial ABC | 312,996.42 | 288,404.82 |
| Other units | 3,008,797.80 | 2,869,638.75 |
| Total | 19,793,050.41 | 4,753,764.56 |
31.2 Other account payable
(1) Other account payable by nature
| Nature | Ending balance | Opening balance |
| 1.Accrued expenses (expenses occurred without reimbursed) | 356,156,653.46 | 364,248,335.74 |
| 2. Receivables received temporary and deducted temporary | 25,026,463.97 | 26,847,048.85 |
| 3.Deposit, margin | 155,717,250.89 | 148,778,715.05 |
| 4.Not the come-and-go with related parties in statement scope | 320,375,542.82 | 187,411,658.83 |
| 5. Other | 26,709,980.05 | 19,413,244.97 |
| Total | 883,985,891.19 | 746,699,003.44 |
(2) At end of Current Period, the major other account payable with account age over one yearmainly refers to deposit and margin.
32. Non-current liability due within one year
| Item | Ending balance | Opening balance |
| Long-term loan principal and interest due within one year | 20,201,972.50 | 320,520,933.33 |
| Long term account payable due within one year | 173,499.29 | |
| Lease liabilities due within one year | 10,041,738.45 | 12,024,045.63 |
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
| Item | Ending balance | Opening balance |
| Total | 30,243,710.95 | 332,718,478.25 |
33. Other current liabilities
| Item | Ending balance | Opening balance |
| Pending sales tax | 21,957,205.63 | 23,388,239.94 |
| Factoring fees payable | 419,897.59 | 785,519.22 |
| Bill recovery | 200,000.00 | |
| Total | 22,377,103.22 | 24,373,759.16 |
34. Long term borrowings
(1) Category of long term borrowings
| Category | Ending balance | Amount at year-begin |
| Loan in mortgage | 158,000,000.00 | 168,000,000.00 |
| Total | 158,000,000.00 | 168,000,000.00 |
(2) Long-term borrowings at period-end
| Loan from | Borrowing day | Returning day | Foreign currency | Interest rate | Ending balance (RMB) | Opening balance (RMB) |
| EIBC (Export-Import Bank) Anhui Province Branch Note 1 | 2019/12/23 | 2026/11/25 | RMB | 4.455% | 60,000,000.00 | 70,000,000.00 |
| EIBC (Export-Import Bank) Anhui Province Branch Note 2 | 2020/3/26 | 2026/11/25 | RMB | 4.405% | 98,000,000.00 | 98,000,000.00 |
| Total | 158,000,000.00 | 168,000,000.00 |
Note 1: The Company signed the "Loan Contract (Promoting the Opening-up of Loans in China - Fixed Assets)" with theExport-Import Bank of China Anhui Branch, the Company's investment real estate, fixed assets and intangible assets areused as mortgage for the loan. The term of the loan is from December 23, 2019 to November 25, 2026, the interest rateof the loan is determined according to the market quotation rate of the loan with a term of more than 5 years reduced by
0.195%, which fluctuates annually, and the amount of the loan is 100,000,000.00 yuan. According to the repayment planagreed with the bank, the Company has repaid 20,000,000.00 yuan. It plans to repay 10,000,000.00 yuan on December25, 2022 and repay 10,000,000.00 on June 25, 2023, a total of 20,000,000.00 yuan has been reclassified to non-currentliabilities due within one year. The ending balance is 60,000,000.00 yuan.Note 2: The Company signed the "Loan Contract (Promoting the Opening-up of Loans in China - Fixed Assets)" with theExport-Import Bank of China Anhui Branch, the Company's fixed assets and intangible assets are pledge against long-
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
term borrowings under the contract. On March 26, 2020, withdrawing 98,000,000.00 yuan from the bank. Term ofthe loan is from March 26, 2020 to November 25, 2026. The interest rate of loan is determined based on the quotedmarket rate for loans with a maturity of 5 years or more minus 0.195% and fluctuates annually. Amount of loans are98,000,000.00 yuan, ending balance amounted to 98,000,000.00 yuan.
35. Lease liability
| Item | Ending balance | Opening balance |
| Lease liability | 30,061,422.30 | 33,225,912.15 |
| Total | 30,061,422.30 | 33,225,912.15 |
36. Long-term payable
| Item | Ending balance | Opening balance |
| Special payable | 1,241,464.86 | 1,337,643.24 |
| Total | 1,241,464.86 | 1,337,643.24 |
36.1 Special payable
| Item | Opening balance | Increase this period | Decrease this period | Ending balance | Reason |
| Special funds for technological transformation from Zhongshan Changhong | 1,337,643.24 | 96,178.38 | 1,241,464.86 | Technology plan project in Zhongshan City |
37. Long-term wage payable
| Item | Ending balance | Opening balance |
| Dismissal welfare | 8,710,896.43 | 9,828,300.06 |
According to the internal early retirement policy, the long-term payable dismissal welfare bears by theCompany up to end of Current Period amounting to 8,710,896.43 yuan
38. Accrual liability
| Item | Ending balance | Opening balance | Reason |
| Product quality guarantee note1 | 9,754,392.41 | 9,170,710.48 | Guarantee of product |
| Guarantee fund for quality service note1 | 365,085.53 | 399,861.15 | Guarantee of product |
| Litigation matters note2 | 1,793,030.00 | 1,793,030.00 | |
| Total | 11,912,507.94 | 11,363,601.63 |
Note 1: Product quality deposit is the maintenance expense provided by the Company under the national policy, whilequality service special guarantees capital is the warranty costs provided for product quality in addition to such policy.
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
Note2: In November 2021, Zhejiang Teruisi Pharmaceutical Inc. filed a lawsuit against Zhongke Meiling for the "ColdStorage Design, Equipment Purchase and Installation Construction Contract". Currently, quality of the subject under thecontract is being authenticated by a third party engineering quality appraisal agency, the initial start-up operation test isnow completed. Zhongke Meiling intends to maintain the cold storage project, and the estimated maintenance cost is1,793,030.00 yuan.
39. Deferred income
(1) Classification of deferred income
| Item | Opening balance | Increase this period | Decrease this period | Ending balance | Reason |
| Government subsidies---subsidies of development project | 139,155,085.63 | 1,442,700.00 | 12,251,179.06 | 128,346,606.57 | |
| Government subsidies---subsidies of Relocation | 36,508,953.20 | 1,696,550.52 | 34,812,402.68 | ||
| Total | 175,664,038.83 | 1,442,700.00 | 13,947,729.58 | 163,159,009.25 |
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
(2) Government subsidy
| Item | Opening balance | New subsidy in Current Period | Amount reckoned into other income in Current Period | Other changes | Ending balance | Assets related/Income related |
| Demonstration factory construction for the intelligent manufacturing of intelligent air-conditioner | 42,607,594.97 | 3,759,493.66 | 38,848,101.31 | Assets related | ||
| Demolition compensation of Changhong Meiling | 36,104,113.24 | 1,291,710.56 | 34,812,402.68 | Assets related | ||
| Key chip and module for transducer used and detection capacity building | 7,600,000.00 | 7,600,000.00 | Assets related | |||
| Centre for external cooperation of the environmental protection | 7,687,368.20 | 515,754.53 | 7,171,613.67 | Assets related | ||
| Changhong Air Conditioner- relocation of production base and upgrading & expansion | 6,497,777.76 | 573,333.33 | 5,924,444.43 | Assets related | ||
| Subsidy for industrial development policy from Hefei for first half of 2018 | 6,544,000.00 | 625,000.00 | 5,919,000.00 | Assets related | ||
| Adaptability improvement on new coolants production | 7,094,945.01 | 1,182,490.86 | 5,912,454.15 | Assets related | ||
| District-level subsidy funds for advanced manufacturing policies in the first half of 2021 | 5,595,843.75 | 373,056.26 | 5,222,787.49 | Assets related | ||
| Municipal award and subsidy for the advanced manufacturing policy in first half of 2020 | 5,222,875.00 | 373,062.50 | 4,849,812.50 | Assets related | ||
| Special fund, government subsidy CZ059001 | 4,200,000.00 | 4,200,000.00 | Assets related | |||
| Subsidy for industrial development policy from Hefei for second half of 2019 | 4,471,375.00 | 447,137.50 | 4,024,237.50 | Assets related | ||
| 20-year subsidy for advancing technological transformation projects | 4,108,758.34 | 267,962.50 | 3,840,795.84 | Assets related | ||
| 2021 manufacturing strong provincial policy subsidy funds | 3,056,250.00 | 203,750.00 | 2,852,500.00 | Assets related | ||
| Policy funds for manufacturing a strong province, subsidy for equipment for the technological transformation of industrial strong base | 3,125,000.00 | 312,500.00 | 2,812,500.00 | Assets related | ||
| Subsidy for industrial development policy from Hefei for first half of 2020 | 3,005,983.33 | 217,300.00 | 2,788,683.33 | Assets related | ||
| Government subsidy for new plant construction - industrialization of cryogenic refrigeration equipment | 2,791,666.67 | 250,000.00 | 2,541,666.67 | Assets related | ||
| Subsidies for intelligent transformation & upgrading of enterprises from the new industrialization policy in economic development zone | 2,675,064.58 | 302,837.50 | 2,372,227.08 | Assets related |
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
| Item | Opening balance | New subsidy in Current Period | Amount reckoned into other income in Current Period | Other changes | Ending balance | Assets related/Income related |
| RESEARCH AND APPLICATION OF THE VISA (VARIABLE FREQUENCY VOLUME INTEGRATED INTELLIGENT AIR-CONDITIONER) | 3,053,488.40 | 704,651.16 | 2,348,837.24 | Assets related | ||
| Research and application of the MCU chip for inverter control | 2,300,000.00 | 2,300,000.00 | Assets related | |||
| 2020 supporting funds to support the innovation and development of artificial intelligence industry | 2,437,500.00 | 162,500.00 | 2,275,000.00 | Assets related | ||
| 2020 fund allocation for Anhui Province's triple innovation project | 2,369,791.67 | 162,500.00 | 2,207,291.67 | Assets related | ||
| Special funds for strategic emerging industry and high-end growth industry | 1,896,551.72 | 206,896.55 | 1,689,655.17 | Assets related | ||
| Upgrading technology transformation of AC production line | 1,385,600.00 | 113,903.75 | 1,271,696.25 | Assets related | ||
| Industrialization of intelligent white household appliances software platform and typical application research and development | 1,575,757.60 | 363,636.36 | 1,212,121.24 | Assets related | ||
| Equipment subsidy for the industrial base technical renovation from Economic and Information Commission | 1,312,083.33 | 117,500.00 | 1,194,583.33 | Assets related | ||
| Upgrade project for the production line of Mianyang Meiling Intelligent Refrigerator | 1,119,166.76 | 98,749.98 | 1,020,416.78 | Assets related | ||
| Subsidy from Zhongshan Finance Bureau (CZ028001 provincial special project 2019) | 1,092,060.21 | 152,823.25 | 939,236.96 | Assets related | ||
| Subsidy for equipment purchasing for Hefei Tech. Improvement project in 2017 | 1,000,310.00 | 89,580.00 | 910,730.00 | Assets related | ||
| Subsidy for purchase of R & D instruments and equipment | 699,992.68 | 91,056.26 | 608,936.42 | Assets related | ||
| Emerging Industry Base Fund Support Item | 613,608.25 | 38,350.52 | 575,257.73 | Assets related | ||
| Promotion of the energy-saving room air conditioner | 648,453.69 | 105,154.62 | 543,299.07 | Assets related | ||
| Robot policy-rewards for purchasing robots | 485,031.26 | 35,062.50 | 449,968.76 | Assets related | ||
| Special fund for technical improvement | 355,708.62 | 47,905.22 | 307,803.40 | Assets related | ||
| Promoting the new industry (annual output of 0.6 million medium& large volume environmental protection and energy saving freezer) | 456,618.69 | 152,206.26 | 304,412.43 | Assets related | ||
| Technical transformation of refrigerator evaporator workshop | 333,437.50 | 30,312.50 | 303,125.00 | Assets related |
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
| Item | Opening balance | New subsidy in Current Period | Amount reckoned into other income in Current Period | Other changes | Ending balance | Assets related/Income related |
| Special fund for technical improvement | 380,238.04 | 51,904.80 | 328,333.24 | Assets related | ||
| 2018 Zhongshan Special fund for industrial development | 292,650.70 | 38,996.16 | 253,654.54 | Assets related | ||
| Technical transformation subsidy | 177,438.37 | 15,890.00 | 161,548.37 | Assets related | ||
| Refrigerator evaporator production workshop | 128,229.24 | 14,516.51 | 113,712.73 | Assets related | ||
| Technical renovation of air conditioner production line | 94,758.27 | 30,578.55 | 64,179.72 | Assets related | ||
| Subsidy of advanced manufacturing policy for second half of 2021 | 57,100.00 | 2,379.17 | 54,720.83 | Assets related | ||
| Subsidy for the development on production line technical reform for green-friendly high-quality metal pipe | 47,708.02 | 20,446.30 | 27,261.72 | Assets related | ||
| Demolition compensation of Jiangxi Meiling | 404,839.96 | 404,839.96 | Assets related | |||
| Total | 175,664,038.83 | 1,442,700.00 | 13,947,729.58 | 163,159,009.25 |
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
40. Share capital
| Item | Opening balance | Change during the period (+、-) | Ending balance | ||||
| New shares issued | Bonus share | Shares transferred from capital reserve | Other | Subtotal | |||
| Total shares | 1,044,597,881.00 | -14,674,166.00 | -14,674,166.00 | 1,029,923,715.00 | |||
41. Capital reserve
| Item | Opening balance | Increase this period | Decrease this period | Ending balance |
| Share premium | 2,634,786,308.86 | 12,493,667.73 | 2,622,292,641.13 | |
| Other capital reserve | 48,043,091.40 | 48,043,091.40 | ||
| Total | 2,682,829,400.26 | 12,493,667.73 | 2,670,335,732.53 |
Note: change of share premium in the Period refers to the handling charge from repurchase of B-Share 64.58 yuan,cancellation of treasury stock in the Period was 12,493,603.15 yuan.
42. Treasury stock
| Item | Opening balance | Increase this period | Decrease this period | Ending balance |
| Repurchase of B shares | 26,430,571.38 | 737,197.77 | 27,167,769.15 | |
| Total | 26,430,571.38 | 737,197.77 | 27,167,769.15 |
Note: The Company held the 40
th session of the 9
thBOD, the 21
st session of the 9
th
BOS, and the third extraordinary generalmeeting of shareholders in 2020 on July 27 and August 18, 2020, which reviewed and approved the Proposal on theRepurchase of Part of the Company's Domestically Listed Foreign Shares (B Shares)", and agreed that the companywould use its own funds to repurchase part of the company's domestically listed foreign shares (B shares) throughcentralized bidding transactions, and the repurchased B shares would be cancelled in accordance with the law and theregistered capital of the company would be reduced accordingly. The total amount of the repurchase should be no lessthan 50 million yuan(inclusive) and no more than 100 million yuan (inclusive), based on the central parity rate of HongKong Dollar against RMB on July 24, 2020: 1 HKD = 0.9023 yuan, equivalent to Hong Kong dollars of not less thanHK$55,413,942.15 (inclusive) and not more than HK$110,827,884.30 (inclusive). The specific total amount ofrepurchase funds should be subject to the total amount of funds actually used for the repurchase of shares at the expirationof the repurchase period. The price of repurchasing B shares this time should not exceed HK$2.21/share (inclusive). Afterthe implementation of the 2020 annual profit distribution plan, the upper limit of the price of repurchasing B shares wouldbe adjusted from HK$2.21/share (inclusive) to HK$2.15/share (inclusive).On August 24, 2021 and September 10, the Company held 11
th session of 10
th BOD, the 9
th session of 10
thBOS and third
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
extraordinary shareholders meeting of 2021 to deliberated and approved the Proposal on Continue and Partially Adjustedthe Repurchase Program of Certain Domestic Listed Foreign Shares (B share), agreed that the Company continue toimplement the Repurchase of Part of Domestic Listed Foreign Shares (B share) which has been approved at the previousshareholders general meeting. At the same time, to extend the repurchase period of the aforementioned program toFebruary 18, 2022, that is repurchase implementation period starts from August 18, 2020 to February 18, 2022. Price ofthe shares repurchased adjusted to not more than HK$ 2.36 per share (inclusive). the 9,582,882 shares (B share) thatrepurchased at previous period will be cancelled in accordance with the law and regulations after the expiration of theextended period.Since the first repurchase of shares on November 4, 2020, the company had cumulatively repurchased 14,674,166 sharesof the company (B shares) in centralized bidding transactions through the special securities account for repurchase untilFebruary 18, 2022, representing 1.4048% of the total shares of the Company. The highest traded price was HK$2.36 pershare, and lowest traded price was HK$1.87 per share, the average price was HK$2.22. the funds used for repurchase ofshares amounted to HK$ 32,558,454.08 accumulative (transaction fees such as stamp duty and commission exclusive).The 14,674,166 domestically listed foreign shares (B share) repurchased by the Company have been completed thecancellation procedures at Shenzhen Branch of China Securities Depository and Clearing Co., Ltd. on March 2, 2022
43. Other comprehensive income
| Item | Opening balance | Current Period | Ending balance | ||||
| Account before income tax in Current Period | Less: written in other comprehensive income in previous period and carried forward to gains and losses in current period | Less：Income tax expenses | Belong to parent company after tax | Belong to minority shareholders after tax | |||
| Other comprehensive income re-divided into gains/losses | |||||||
| Conversion difference arising from foreign currency financial statement | -20,903,270.57 | 161,477.79 | 61,187.61 | 100,290.18 | -20,842,082.96 | ||
| Total | -20,903,270.57 | 161,477.79 | 61,187.61 | 100,290.18 | -20,842,082.96 | ||
44. Surplus reserves
| Item | Opening balance | Increase this period | Decrease this period | Ending balance |
| Statutory surplus reserve | 307,503,534.74 | 307,503,534.74 | ||
| Discretionary surplus reserve | 115,607,702.16 | 115,607,702.16 |
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
| Item | Opening balance | Increase this period | Decrease this period | Ending balance |
| Total | 423,111,236.90 | 423,111,236.90 |
45. Retained profit
| Item | Current Period | Last Year |
| Amount at the end of last year | 734,129,724.00 | 740,754,202.23 |
| Add: adjustment from undistributed profit at year-begin | ||
| Including: retroactive adjustment by Accounting Standards for Business Enterprise | ||
| change of accounting policy | ||
| Correction of former material error | ||
| Change of combination scope under common control | ||
| Amount at the beginning of this period | 734,129,724.00 | 740,754,202.23 |
| Add: net profit attributable to shareholders of parent company for this period | 60,375,199.25 | 51,898,388.84 |
| Less: withdraw of statutory surplus reserve | 6,746,446.47 | |
| withdraw of discretionary surplus reserve | ||
| Withdraw of general risk provision | ||
| Dividend payable for ordinary shares | 51,496,185.75 | 51,776,420.60 |
| Dividend of ordinary shares transferred to share capital | ||
| Ending balance | 743,008,737.50 | 734,129,724.00 |
46. Operation income and operation cost
(1) Operation income and operation cost
| Item | Current Period | Last Period | ||
| Income | Cost | Income | Cost | |
| Main business | 10,138,489,064.28 | 9,027,583,283.96 | 9,076,019,575.56 | 7,709,772,571.05 |
| Other business | 86,014,486.91 | 33,497,247.10 | 526,739,769.73 | 467,458,625.12 |
| Total | 10,224,503,551.19 | 9,061,080,531.06 | 9,602,759,345.29 | 8,177,231,196.17 |
(2) Main business classified according to product
| Product | Current Period | Last Period | ||
| Operation income | Operation cost | Operation income | Operation cost | |
| Refrigerator, freezer | 3,557,279,193.80 | 3,052,742,990.21 | 4,083,961,202.33 | 3,333,608,452.02 |
| Air-conditioner | 5,350,650,174.76 | 4,907,155,572.46 | 3,958,753,350.50 | 3,540,481,498.57 |
| Washing machine | 393,315,713.02 | 330,678,793.62 | 322,671,076.35 | 245,250,873.36 |
| Small | 727,498,495.75 | 642,738,038.67 | 571,948,185.39 | 474,186,822.18 |
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
| Product | Current Period | Last Period | ||
| Operation income | Operation cost | Operation income | Operation cost | |
| household appliances and kitchen and bathroom | ||||
| Other | 109,745,486.95 | 94,267,889.00 | 138,685,760.99 | 116,244,924.92 |
| Total | 10,138,489,064.28 | 9,027,583,283.96 | 9,076,019,575.56 | 7,709,772,571.05 |
(3) Main business classified according to sales region
| Region | Current Period | Last Period | ||
| Operation income | Operation cost | Operation income | Operation cost | |
| Domestic | 7,475,522,523.09 | 6,574,576,772.52 | 6,392,384,758.43 | 5,212,930,284.17 |
| Overseas | 2,662,966,541.19 | 2,453,006,511.44 | 2,683,634,817.13 | 2,496,842,286.88 |
| Total | 10,138,489,064.28 | 9,027,583,283.96 | 9,076,019,575.56 | 7,709,772,571.05 |
(4) At end of the Period, the amount of revenue corresponding to performance obligations that have been contracted forbut not yet fulfill or not yet fulfilled was 137,082,770.11 yuan, of which, 39,802,951.78 yuan is expected to recognizedas revenue in 2022, 67,649,790.28 yuan is expected to recognized as revenue in 2023 and 29,630,028.05 yuan is expectedto recognized as revenue in 2024.
(5) Top five clients have income in sales of 6,155,942,986.63 yuan in total, a 60.21% in total operation income.
47. Business tax and extra charges
| Item | Current Period | Last Period |
| Treatment fund for abandon electrics & electronics | 34,053,294.00 | 24,442,938.00 |
| City construction tax | 11,595,547.22 | 6,500,216.07 |
| Extra charge for education and local education surcharge | 8,453,214.37 | 5,016,280.65 |
| Real estate tax | 10,082,904.39 | 9,677,275.48 |
| Stamp duty | 7,967,068.56 | 7,917,813.37 |
| Land use tax | 3,745,329.40 | 4,111,310.87 |
| Water fund | 3,799,503.15 | 3,408,779.05 |
| Other | 4,583.20 | 3,117.48 |
| Total | 79,701,444.29 | 61,077,730.97 |
48. Sales expense
| Item | Current Period | Last Period |
| Salary, extra charges and labor service expenses | 276,149,382.91 | 265,425,977.62 |
| Market support expenses | 141,739,223.51 | 146,558,469.94 |
| National three guarantees expense | 87,232,488.89 | 62,323,679.78 |
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
| Item | Current Period | Last Period |
| Shipping and Installation expense | 60,200,021.37 | 383,528,356.21 |
| Storage lease expenses | 41,176,101.46 | 58,782,655.17 |
| Travelling expenses | 7,399,226.17 | 16,450,518.67 |
| Business activity expenses | 7,058,303.94 | 8,575,130.77 |
| Vehicle expenses | 6,683,479.81 | 3,175,822.45 |
| Depreciation expenses | 3,923,388.83 | 4,209,609.23 |
| Advertising expenses | 1,933,500.47 | 1,247,421.22 |
| House-lease expenses | 1,546,666.83 | 1,207,473.65 |
| Other expenses | 31,024,525.79 | 33,320,814.23 |
| Total | 666,066,309.98 | 984,805,928.94 |
49. Administration expense
| Item | Current Period | Last Period |
| Salary and social insurance etc. | 103,835,407.55 | 95,733,835.85 |
| Depreciation | 11,251,858.42 | 12,053,427.34 |
| Amortized intangible assets | 9,079,708.19 | 9,407,284.87 |
| Water and electricity fee | 2,245,082.21 | 3,137,429.43 |
| Business activities fee | 2,119,039.65 | 2,501,946.80 |
| Property insurance fee | 1,759,716.41 | 1,557,260.98 |
| Domestic travelling fee | 1,270,723.15 | 1,462,423.83 |
| Office fee | 709,951.38 | 1,063,725.75 |
| Other expenses | 31,860,655.01 | 26,040,092.13 |
| Total | 164,132,141.97 | 152,957,426.98 |
50. R&D expenses
| Item | Current Period | Last Period |
| Salary and social insurance etc. | 106,201,825.59 | 64,787,655.99 |
| Amortized intangible assets | 63,948,921.59 | 58,589,406.22 |
| Trial fee of R&D | 29,904,070.97 | 32,578,184.91 |
| Cost of mould | 15,297,848.50 | 1,384,855.16 |
| Depreciation | 8,315,504.26 | 6,808,269.93 |
| Inspection and authentication fee | 8,120,934.36 | 6,718,245.74 |
| utility bill | 5,776,873.50 | 4,976,797.24 |
| Software royalty | 1,166,276.97 | 1,291,273.00 |
| Other expenses | 9,380,518.80 | 8,978,566.02 |
| Total | 248,112,774.54 | 186,113,254.21 |
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
51. Financial expenses
| Item | Current Period | Last Period |
| Interest expenditure | 16,913,382.96 | 37,292,383.25 |
| Less: Interest income | 66,581,155.37 | 62,433,816.96 |
| Add: exchange loss | -9,470,041.33 | 19,162,463.83 |
| Procedure charge expenditure | 6,582,921.01 | 8,002,685.90 |
| Discount expenditure | -11,270,142.69 | -7,719,706.12 |
| Interest expense on lease liability | 1,038,707.46 | |
| Total | -62,786,327.96 | -5,695,990.10 |
52. Other income
| Item | Current Period | Last Period |
| Immediate refund of VAT for software products | 6,981,697.33 | 2,548,001.17 |
| Awards of high quality policy industrial internet for 2021 | 4,663,100.00 | |
| Award funds for supporting the development of China Sound Valley | 4,385,000.00 | 544,200.00 |
| Demonstration factory construction for the intelligent manufacturing of intelligent air-conditioner | 3,759,493.66 | 3,132,911.40 |
| 2022 provincial foreign trade funds (market development of key and brand market enterprise) | 2,500,000.00 | |
| Subsidy for employment stable | 2,266,011.87 | 111,761.05 |
| Supporting the industrial internet construction and scene application | 2,000,000.00 | |
| Promotion of insurance | 1,819,544.22 | |
| Demolition compensation of Changhong Meiling | 1,291,710.56 | 1,069,128.53 |
| Adaptability improvement on new coolants production | 1,182,490.86 | 1,182,490.86 |
| Dispersed to collected for tablet in Nanjing Port | 1,165,095.00 | |
| 2022 Provincial industrial development special funds | 1,000,000.00 | |
| Support the linage development of enterprises in the region | 716,000.00 | |
| RESEARCH AND APPLICATION OF THE VISA (VARIABLE FREQUENCY VOLUME INTEGRATED INTELLIGENT AIR-CONDITIONER) | 704,651.16 | 704,651.16 |
| Subsidy for industrial development policy from Hefei for first half of 2018 | 625,000.00 | 625,000.00 |
| Personal tax handing fee refund | 597,590.71 | 435,495.15 |
| Changhong Air Conditioner- relocation of production base and upgrading & expansion | 573,333.33 | |
| Centre for external cooperation of the environmental protection | 515,754.53 | 257,877.27 |
| 2021 Anhui Science & technology support funds for major special projects | 500,000.00 | |
| 2021 advanced manufacturing development policy | 500,000.00 | |
| Award of innovation for the new third board | 500,000.00 | |
| Subsidy for industrial development policy from Hefei for second half of 2019 | 447,137.50 | 447,137.50 |
| Demolition compensation of Jiangxi Meiling | 404,839.96 | 889,944.30 |
| Municipal award and subsidy for the advanced manufacturing policy in first | 373,062.50 |
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
| Item | Current Period | Last Period |
| half of 2020 | ||
| District-level subsidy funds for advanced manufacturing policies in the first half of 2021 | 373,056.26 | |
| Industrialization of intelligent white household appliances software platform and typical application research and development | 363,636.36 | 363,636.36 |
| Policy funds for manufacturing a strong province, subsidy for equipment for the technological transformation of industrial strong base | 312,500.00 | 312,500.00 |
| Subsidies for intelligent transformation & upgrading of enterprises from the new industrialization policy in economic development zone | 302,837.50 | 302,837.50 |
| 2020 subsidy for advancing technological transformation projects | 267,962.50 | |
| Government subsidy for new plant construction - industrialization of cryogenic refrigeration equipment | 250,000.00 | 250,000.00 |
| Subsidy for industrial development policy from Hefei for first half of 2020 | 217,300.00 | 217,300.00 |
| Special funds for strategic emerging industry and high-end growth industry | 206,896.55 | |
| 2021 manufacturing strong provincial policy subsidy funds | 203,750.00 | |
| 2020 fund allocation for Anhui Province's triple innovation project | 162,500.00 | |
| 2020 supporting funds to support the innovation and development of artificial intelligence industry | 162,500.00 | |
| Subsidy from Zhongshan Finance Bureau (CZ028001 provincial special project 2019) | 152,823.25 | 152,823.24 |
| Promoting the new industry (annual output of 0.6 million medium& large volume environmental protection and energy saving freezer) | 152,206.26 | 152,206.26 |
| Upgrading technology transformation of AC production line | 113,903.75 | 30,601.92 |
| Equipment subsidy for the industrial base technical renovation from Economic and Information Commission | 117,500.00 | 117,500.00 |
| Promotion of the energy-saving room air conditioner | 105,154.62 | 105,154.62 |
| Corporate policy funding | 27,000,000.00 | |
| Loan discount | 3,000,000.00 | |
| Subsidy of the featured dual innovation vehicle in economic development zone of Hefei | 2,000,000.00 | |
| VAT refund 2019 | 1,635,266.39 | |
| Economic Development Zone Industrialization Policy Award and Supplementary Funds in 2019 | 1,140,400.00 | |
| Hefei City 2020 smart home appliance (home) technology award and subsidy | 1,000,000.00 | |
| Reward for the enterprise with fast revenue growth | 500,000.00 | |
| Technical transformation of the Athena project | 474,375.00 | |
| 2018 special funds for industrial development of Zhongshan -topic of technology transformation | 132,861.90 | |
| Other petty projects | 5,389,351.57 | 6,414,039.35 |
| Total | 48,325,391.81 | 57,250,100.93 |
53. Investment income
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
| Item | Current Period | Last Period |
| Long-term equity investment income by equity method | 8,971,315.55 | -16,047,810.77 |
| Investment income obtained from disposal of Trading financial assets | 7,825,971.39 | 65,827,326.06 |
| Income from financial products | 1,784,208.22 | 2,754,190.61 |
| Investment income of other non-current financial assets during holding period | 76,200.80 | |
| The termination of income recognition for financial assets measured by amortized cost | -10,198,142.54 | |
| Interest income from debt investment during the holding period | 5,356,708.33 | |
| Total | 13,816,261.75 | 52,533,705.90 |
54. Changes in fair value gains
| Item | Current Period | Last Period |
| Trading financial assets | 30,187,709.04 | -11,569,560.58 |
| Including :Income of fair value changes from derivative financial instruments | 29,478,307.89 | -18,496,182.50 |
| Interest accrual for wealth management products | 709,401.15 | 6,926,621.92 |
| Trading financial liability | -26,624,972.00 | 1,837,906.29 |
| Including: Income of fair value changes from derivative financial instruments | -26,624,972.00 | 1,837,906.29 |
| Total | 3,562,737.04 | -9,731,654.29 |
55. Credit impairment loss
| Item | Current Period | Last Period |
| Note receivable bad debt loss | 546,876.51 | |
| Account receivable bad debt loss | -50,863,838.62 | -15,669,395.22 |
| Other account receivable bad debt loss | 397,219.49 | 1,514.82 |
| Total | -50,466,619.13 | -15,121,003.89 |
56. Assets impairment loss
| Item | Current Period | Last Period |
| Loss on inventory valuation | -28,983,106.69 | -43,310,366.42 |
| Impairment loss on contractual assets | -808,716.15 | |
| Total | -29,791,822.84 | -43,310,366.42 |
57. Income from assets disposal
| Item | Current Period | Last Period | Amount reckoned into non-recurring gains/losses in Current Period |
| Income from non-current assets disposal | 8,358,775.10 | -208,978.90 | 8,358,775.10 |
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
| Item | Current Period | Last Period | Amount reckoned into non-recurring gains/losses in Current Period |
| Including: income classify to assets ready for sale | |||
| income not classify as to assets ready for sale | 8,358,775.10 | -208,978.90 | 8,358,775.10 |
| Including: Income from fixed assets disposal | 4,141,767.54 | -208,978.90 | 4,141,767.54 |
| Income from intangible assets disposal | 4,217,007.56 | 4,217,007.56 | |
| Total | 8,358,775.10 | -208,978.90 | 8,358,775.10 |
58. Non-operation revenue
| Item | Current Period | Last Period | Amount reckoned into non-recurring gains/losses in Current Period |
| Income of penalty | 567,772.74 | 854,054.88 | 567,772.74 |
| Profit from disposal of non-current assets | 321,759.27 | 117,430.00 | 321,759.27 |
| Other | 2,021,355.78 | 4,890,835.83 | 2,021,355.78 |
| Total | 2,910,887.79 | 5,862,320.71 | 2,910,887.79 |
59. Non-operating expenditure
| Item | Current Period | Last Period | Amount reckoned into non-recurring gains/losses in Current Period |
| Non-current asset retirement losses | 1,142,293.89 | 645,034.44 | 1,142,293.89 |
| Penalty and late fee | 2,264.75 | 34,829.07 | 2,264.75 |
| Other | 1,188,402.19 | 80,729.11 | 1,188,402.19 |
| Total | 2,332,960.83 | 760,592.62 | 2,332,960.83 |
60. Income tax expenses
| Item | Current Period | Last Period |
| Current income tax | 16,329,432.39 | 21,302,275.31 |
| Deferred Income Tax | -26,445,005.85 | 15,784,696.07 |
| Total | -10,115,573.46 | 37,086,971.38 |
61. Other comprehensive income
Found more in 43. Other comprehensive income in VI
62. Items of cash flow statement
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
(1) Cash received (paid) from (for) other activities relating to operation/investment/financing
1) Cash received from other activities relating to operation
| Item | Current Period | Last Period |
| Government subsidy and rewards | 31,397,968.22 | 40,956,209.27 |
| Cash deposit, deposit | 19,397,785.91 | 9,420,313.94 |
| Collection of restriction fund | 14,531,658.71 | 22,688,330.93 |
| Rental income | 3,346,435.18 | 2,178,291.38 |
| Compensations | 1,724,086.13 | 2,605,385.53 |
| Petty cash collection | 62,136.33 | 81,130.50 |
| Other | 2,347,265.99 | 1,712,766.06 |
| Total | 72,807,336.47 | 79,642,427.61 |
2) Cash paid for other activities relating to operation
| Item | Current Period | Last Period |
| Market expenses | 82,409,839.91 | 103,773,740.45 |
| Rental fee | 52,784,034.29 | 57,814,676.41 |
| Petty cash, deposit, Cash deposit | 22,367,764.50 | 27,666,562.51 |
| Service support fee | 15,879,324.80 | 31,063,421.76 |
| Inspection and certification fee, certification charge and reviewing fee | 14,909,635.84 | 11,298,717.35 |
| Technological cooperation costs and consulting charge | 13,589,880.67 | 6,098,074.18 |
| Repair fee | 13,247,556.80 | 8,129,554.19 |
| Travel expenses, meeting fees and exhibition fees | 13,095,827.32 | 23,609,336.42 |
| Business activity fee | 10,637,980.89 | 11,888,247.82 |
| Transportation and vehicle costs | 7,774,128.45 | 8,370,198.29 |
| Handling fee | 5,441,203.36 | 8,259,452.97 |
| Advertising fee | 4,240,519.54 | 2,917,266.75 |
| Office expenses | 3,180,729.46 | 3,172,145.59 |
| Labor fee | 1,277,408.41 | 2,003,400.19 |
| Communication costs | 1,061,789.96 | 1,073,434.97 |
| Board expenses | 277,495.67 | 295,899.82 |
| Convert to restricted funds | 85,623,704.49 | 397,877,095.29 |
| Other expenses | 43,501,646.82 | 57,185,190.67 |
| Total | 391,300,471.18 | 762,496,415.63 |
3) Cash received from other activities relating to investment
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
| Item | Current Period | Last Period |
| Interest income arising from bank savings | 64,456,820.07 | 69,755,550.75 |
| Cash deposit | 1,182,376.24 | 925,112.51 |
| Income of forward exchange settlement | 8,021.82 | 67,706,807.74 |
| Total | 65,647,218.13 | 138,387,471.00 |
4) Cash paid for other activities relating to investment
| Item | Current Period | Last Period |
| Loses of forward exchange settlement | 7,635,033.86 | 47,506.93 |
| Total | 7,635,033.86 | 47,506.93 |
5) Cash received from other activities relating to financing
| Item | Current Period | Last Period |
| Meiling series (internal) bill discounting fundraising | 84,181.37 | 4,675,857.30 |
| Total | 84,181.37 | 4,675,857.30 |
6) Cash paid for other activities relating to financing
| Item | Current Period | Last Period |
| Lease liability principal and interest | 7,095,354.40 | 4,097,081.48 |
| Meiling series (internal) bill discounting fundraising | 2,341,617.17 | |
| Intermediary service fee | 1,345,000.00 | |
| Payment for B share repurchase | 737,262.35 | 7,032,876.30 |
| Financing lease | 175,323.88 | 175,323.88 |
| Handling charge of dividend | 36,509.97 | 36,415.52 |
| Convert to restricted funds | 420,619,026.50 | |
| Total | 432,350,094.27 | 11,341,697.18 |
(2) Supplementary of the consolidated cash flow statement
| Item | Current Period | Last Period |
| 1. Net profit is adjusted to cash flow of operation activities: | ||
| Net profit | 72,694,901.46 | 55,696,358.16 |
| Add: provision for depreciation of assets | 60,861,695.16 | 32,172,406.39 |
| Depreciation of fixed assets, consumption of oil gas assets and depreciation of productive biological assets | 112,530,324.02 | 108,832,291.21 |
| Depreciation of right-of-use assets | 6,170,422.64 | 3,296,977.97 |
| Amortization of intangible assets | 74,908,844.79 | 70,475,493.03 |
| Amortization of long-term retained expense | 19,080.92 |
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
| Item | Current Period | Last Period |
| Loss from disposal of fixed assets, intangible assets and other long term assets (gain is listed with “-”) | -8,358,775.10 | 208,978.90 |
| Loss from discarding fixed assets as useless (gain is listed with “-”) | -820,534.62 | 527,604.44 |
| Loss from change of fair value (gain is listed with “-”) | -3,562,737.04 | 9,731,654.29 |
| Financial expense (gain is listed with “-”) | -59,137,813.74 | -5,978,969.88 |
| Investment loss (gain is listed with “-”) | -13,816,261.75 | -52,533,705.90 |
| Decrease of deferred income tax assets (increase is listed with “-”) | -25,663,712.30 | 19,447,731.84 |
| Increase of deferred income tax liabilities (decrease is listed with “-”) | -781,293.55 | -3,655,216.54 |
| Decrease of inventories (increase is listed with “-”) | -262,649,097.49 | -587,211,166.68 |
| Decrease of operational accounts receivable (increase is listed with “-”) | -410,183,298.77 | -988,302,199.73 |
| Increase of operational accounts receivable (decrease is listed with “-”) | 1,103,933,518.50 | 748,795,645.68 |
| Other | -71,092,045.78 | |
| Net cash flow arising from operation activities | 575,053,217.35 | -588,496,116.82 |
| 2. Major investment and financing activities that do not involve cash receipts: | ||
| Conversion of debt into capital | ||
| Switching Company bonds due within one year | ||
| financing lease of fixed assets | ||
| 3. Net change in cash and cash equivalents: | ||
| Balance at period-end of cash | 5,237,646,245.54 | 4,767,551,500.75 |
| Less: Opening balance of cash | 5,840,194,931.57 | 6,425,529,815.10 |
| Add: Balance at period-end of cash equivalents | ||
| Less: Opening balance of cash equivalents | ||
| Net increase in cash and cash equivalents | -602,548,686.03 | -1,657,978,314.35 |
(3) No net cash paid for subsidiary obtained in Current Period
(4) No net cash received from subsidiary disposal in Current Period
(5) Cash and cash equivalent
| Item | Current Period | Last Period |
| Cash | 5,237,646,245.54 | 4,767,551,500.75 |
| Including: cash in stock | 31,633.86 | 89,912.16 |
| Bank deposits available for payment at any time. | 5,236,987,879.70 | 4,083,081,613.97 |
| Other monetary fund available for payment at any time | 626,731.98 | 684,379,974.62 |
| Cash equivalents | ||
| Including: bond investment due within 3 months | ||
| Balance of cash and cash equivalents at period-end | 5,237,646,245.54 | 4,767,551,500.75 |
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
| Item | Current Period | Last Period |
| Including: using the restricted cash and cash equivalents of the parent company or subsidiary of the group |
63. Assets with ownership or the right to use restricted
| Item | Book value at period-end | Reasons |
| Monetary fund | 931,910,598.85 | Margin, Fixed Deposit, Frozen Funds |
| Receivables financing note 1 | 515,578,650.05 | Pledged |
| Investment real estate note 2 | 3,368,611.31 | Mortgage |
| Fixed assets note 2 | 342,747,272.11 | Mortgage |
| Intangible assets note 2 | 276,909,965.43 | Mortgage |
| Total | 2,070,515,097.75 |
Note 1: The note receivable listed in receivables financing was pledged for: short-term financing from the bank; withpurpose of improving the note utilization, the Company draw up bank acceptance by pledge parts of the outstanding notesreceivable to the bankNote 2: The mortgage of investment real estate, fixed assets, and intangible assets is the mortgage of houses and buildingsand land use rights. For details, please refer to Note VI. 34. Long-term loans.
64. Foreign currency
(1) Foreign currency
| Item | Ending foreign currency balance | Exchange rate | Ending RMB converted balance |
| Monetary fund | 260,304,768.74 | ||
| Including: USD | 31,417,800.49 | 6.7114 | 210,857,426.21 |
| Euro | 525,770.71 | 7.0084 | 3,684,811.44 |
| GBP | 78.79 | 8.1365 | 641.07 |
| AUD | 8,666,462.89 | 4.6145 | 39,991,393.01 |
| HKD | 3,744.65 | 0.8552 | 3,202.42 |
| Pakistan Rupi | 38,723,401.72 | 0.0327 | 1,266,255.24 |
| IDR | 7,009,051,052.00 | 0.000451 | 3,161,082.02 |
| PHP | 11,010,331.41 | 0.1217 | 1,339,957.33 |
| Account receivable | 776,926,671.15 | ||
| Including: USD | 95,324,543.66 | 6.7114 | 639,761,142.32 |
| Euro | 1,893,377.78 | 7.0084 | 13,269,548.83 |
| GBP | 44,831.45 | 8.1365 | 364,771.09 |
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
| Item | Ending foreign currency balance | Exchange rate | Ending RMB converted balance |
| AUD | 9,845,522.00 | 4.6145 | 45,432,161.27 |
| KRW | 1,673,068,607.00 | 0.005155 | 8,624,668.67 |
| Pakistan Rupi | 1,581,761,874.44 | 0.0327 | 51,723,613.29 |
| IDR | 35,381,410,841.21 | 0.000451 | 15,957,016.29 |
| PHP | 14,739,107.58 | 0.1217 | 1,793,749.39 |
| Other account receivable | 6,779,003.68 | ||
| Including: USD | 795,202.49 | 6.7114 | 5,336,921.99 |
| Pakistan Rupi | 13,780,264.89 | 0.0327 | 450,614.66 |
| IDR | 2,019,467,700.00 | 0.000451 | 910,779.93 |
| PHP | 663,000.00 | 0.1217 | 80,687.10 |
| Account payable | 59,980,957.43 | ||
| Including: USD | 770,106.51 | 6.7114 | 5,168,492.83 |
| Euro | 13,419.32 | 7.0084 | 94,047.96 |
| Pakistan Rupi | 997,494,603.03 | 0.0327 | 32,618,073.52 |
| IDR | 33,734,917,734.00 | 0.000451 | 15,214,447.90 |
| PHP | 56,580,897.42 | 0.1217 | 6,885,895.22 |
| Other account payable | 15,476,885.84 | ||
| Including: USD | 100,496.42 | 6.7114 | 674,471.67 |
| Pakistan Rupi | 326,408,714.37 | 0.0327 | 10,673,564.96 |
| IDR | 8,729,895,798.00 | 0.000451 | 3,937,183.00 |
| PHP | 1,574,907.22 | 0.1217 | 191,666.21 |
(2) Foreign operational entity
The foreign operational entity of the Company was Changhong Ruba Trading Company (Private) Limited, mainlyoperates in Lahore, Pakistan; Recording currency is Pakistan Rupi. CHANGHONG MEILING ELECTRIC INDONESIA,PT, mainly operates in Jakarta; recording currency is IDR. CH-Meiling International (Philippines) Inc, mainly operatesin Philippines; Recording currency is PHP.
65. Hedging
The Company adopts forward foreign exchange contracts to hedge the risk of exchange ratefluctuations.The Company designates the purchased forward foreign exchange contracts as hedginginstruments, and manages them in accordance with the hedge accounting method, and evaluates thehedged items of unrecognized asset and liability items, such as unrecognized definite commitments, on
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
the balance sheet date. The Company adopts the ratio analysis method to evaluate the hedgingeffectiveness.Hedging instrument is as follows:
| Item | Book value of the hedging instrument on 30 June 2022 | Item of balance sheet with hedging instrument |
| Fair value hedges | ||
| Exchange rate risk-forward foreign exchange contracts and definite commitments not yet confirmed, etc. | 47,475,394.08 | Trading financial assets |
| Exchange rate risk-forward foreign exchange contracts and definite commitments not yet confirmed, etc. | 38,929,244.41 | Tradable financial liabilities |
66. Government subsidy
| Item | Amount | Item | Amount reckoned into current gain/loss |
| VAT refund on software products | 6,981,697.33 | Other income | 6,981,697.33 |
| Awards of high quality policy industrial internet for 2021 | 4,663,100.00 | Other income | 4,663,100.00 |
| Award funds for supporting the development of China Sound Valley | 4,385,000.00 | Other income | 4,385,000.00 |
| 2022 provincial foreign trade funds (market development of key and brand market enterprise) | 2,500,000.00 | Other income | 2,500,000.00 |
| Subsidy for employment stable | 2,266,011.87 | Other income | 2,266,011.87 |
| Supporting the industrial internet construction and scene application | 2,000,000.00 | Other income | 2,000,000.00 |
| Promotion of insurance | 1,819,544.22 | Other income | 1,819,544.22 |
| Upgrading technology transformation of AC production line | 1,385,600.00 | Deferred income | 113,903.75 |
| Dispersed to collected for tablet in Nanjing Port | 1,165,095.00 | Other income | 1,165,095.00 |
| 2022 Provincial industrial development special funds | 1,000,000.00 | Other income | 1,000,000.00 |
| Support the linage development of enterprises in the region | 716,000.00 | Other income | 716,000.00 |
| Personal tax handling fee refund | 597,590.71 | Other income | 597,590.71 |
| 2021 Anhui Science & technology support funds for major special projects | 500,000.00 | Other income | 500,000.00 |
| 2021 advanced manufacturing development policy | 500,000.00 | Other income | 500,000.00 |
| Award of innovation for the new third board | 500,000.00 | Other income | 500,000.00 |
| Subsidy of advanced manufacturing policy for second half of 2021 | 57,100.00 | Deferred income | 2,379.17 |
| Other petty projects | 4,687,444.72 | Other income | 4,687,444.72 |
| Total | 35,724,183.85 | 34,397,766.77 |
VII. Changes of consolidation rage
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
1. Enterprise combined under the different control: nil
2. Enterprise combined under the same control: nil
3. Reversed takeover: nil
4. Disposal of subsidiary: nil
5. Subsidiary liquidated
| Subsidiary | Equity disposal price | Share disposal ratio （%） | Equity disposal method | Point o at which the control is lost | Basis for determining the point at which the control is lost | Difference between the disposal price and the share of net assets of the subsidiary at the consolidate financial statement corresponding to the disposal of the investment | Amount of investment gain/loss transferred from other comprehensive income that related to equity investment of original subsidiary |
| Jinan Xiangyou Electric Appliances Marketing Co., Ltd | 93.4 | Liquidation & cancellation | 2022.02 | Completed the liquidation & cancellation |
6. Subsidiary newly established: nil
7. Subsidiary merger by absorption
| Name of company | Equity ratio before absorption (%) | Time for absorption |
| Zhengzhou Meiling Electric Appliances Marketing Co., Ltd | 100 | March 2022 |
In March 2022, consolidation by merger, Hefei Meiling Group Holdings Limited purchased 100% equity of ZhengzhouMeiling Electric Appliances Marketing Co., Ltd (hereinafter referred to as Zhengzhou Meiling) from Hefei MeilingElectric Appliances Marketing Co., Ltd. As of 30 June 2022, the industrial & commercial and tax cancellation under thename of Zhengzhou Meiling has not been completed.VIII. Equity in other entity
1. Equity in subsidiary
(1) Composition of the enterprise group
| Subsidiary | Main office place | Registration place | Business nature | Shareholding ratio（%) | Acquire by | |
| Directly | Indirectly | |||||
| Zhongke Meiling Cryogenic Technology Co., Ltd1) | Hefei | Hefei | Manufacturing and sales | 63.2683 | Investment establishment | |
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
| Subsidiary | Main office place | Registration place | Business nature | Shareholding ratio（%) | Acquire by | |
| Directly | Indirectly | |||||
| Sichuan Hongmei Intelligent Technology Co., Ltd.2) | Mianyang | Mianyang | Software development | 100 | Investment establishment | |
| Mianyang Meiling Refrigeration Co., Ltd.3) | Mianyang | Mianyang | Manufacturing and sales | 95 | 5 | Investment establishment |
| Jiangxi Meiling Electric Appliance Co., Ltd. 4) | Jingdezhen | Jingdezhen | Manufacturing and sales | 98.75 | 1.25 | Investment establishment |
| Hefei Meiling Wulian Technology Co., Ltd5） | Hefei | Hefei | Software development | 100 | Investment establishment | |
| Hefei Meiling Electric Appliances Marketing Co., Ltd6) | Hefei | Hefei | Sales | 99.82 | 0.18 | Investment establishment |
| Wuhan Meizhirong Electric Appliances Marketing Co., Ltd7) | Wuhan | Wuhan | Sales | 92 | Investment establishment | |
| Hefei Meiling Nonferrous Metal Products Co., Ltd.8) | Hefei | Hefei | Manufacturing and sales | 100 | Enterprise combined not under the same control | |
| Changhong Meiling Ridian Technology Co., Ltd.9） | Zhongshan | Zhongshan | Manufacturing and sales | 99.0361 | Enterprise combined under the same control | |
| CHANGHONG MEILING ELECTRICINDON ESIA,PT 10） | Jakapta | Jakapta | Sales | 100 | Investment establishment | |
| ChanghongRubaTradingCompany（Private）Limited 11) | Pakistan | Pakistan | Sales | 60 | Investment establishment | |
| Sichuan Changhong Air-conditioner Co., Ltd12) | Mianyang | Mianyang | Manufacturing and sales | 100 | Enterprise combined under the same control | |
| Zhongshan Changhong Electric Co., Ltd13) | Zhongshan | Zhongshan | Manufacturing and sales | 90 | 10 | Enterprise combined under the same control |
| Hefei Meiling Group Holdings Limited14) | Hefei | Hefei | Manufacturing and sales | 100 | Enterprise combined not under the same control | |
| Meiling Equator Household Appliance (Hefei) Co., Ltd.15) | Hefei | Hefei | Manufacturing and sales | 100 | Enterprise combined not under the same control | |
| Hefei Equator Appliance Co., Ltd16) | Hefei | Hefei | Manufacturing and sales | 100 | Enterprise combined not under the same control | |
| Ground Energy Heat Pump Tech. Co., Ltd.17) | Mianyang | Mianyang | Manufacturing and sales | 51 | Investment establishment | |
| Ground Energy Heat Pump Tech. (Zhongshan) Co., Ltd. 18) | Zhongshan | Zhongshan | Manufacturing and sales | 51 | Investment establishment | |
| Meiling CANDY Washing Machine Co., Ltd19） | Hefei | Hefei | R&D, sales | 60 | Investment establishment | |
| Guangzhou Changhong Trading Co., Ltd.20） | Guangzhou | Guangzhou | Sales | 100 | Investment establishment | |
| Hebei Hongmao Daily Appliance Technology Co., Ltd.21） | Handan | Handan | Manufacturing and sales | 99.0361 | Investment establishment | |
| Anhui Tuoxing Technology Co., Ltd.22） | Hefei | Hefei | Manufacturing and sales | 63.2683 | Investment establishment | |
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
| Subsidiary | Main office place | Registration place | Business nature | Shareholding ratio（%) | Acquire by | |
| Directly | Indirectly | |||||
| CH-Meiling.International (Philippines) Inc.23） | Philippines | Philippines | Sales | 100 | Investment establishment | |
| Hefei Changhong Meiling Life Appliances Co., Ltd. 24） | Hefei | Hefei | Sales | 70 | Investment establishment | |
| Anhui Ling'an Medical Equipment Co., Ltd 25） | Lu'an | Lu'an | Manufacturing and sales | 63.2683 | Investment establishment | |
Note：
1) Zhongke Meiling Cryogenic Technology Co., Ltd. (hereinafter referred to as Zhongke Meiling), the predecessor ofwhich was Zhongke Meiling Cryogenic Technology Limited Liability Company, was established on 29 October 2002 byjoint contribution from the Company and Technical Institute of Physics and Chemistry, CAS (“TIPC”), with registeredcapital of 60 million yuan upon the establishment, among which, the Company made capital contribution of 42 millionyuan (including the assets in specie at the consideration of35,573,719.70 yuan as evaluated by Beijing ZhongzhengAppraisal Co., Ltd. with issuance of the Appraisal Report (ZZPBZ(2002)No.029) and cash contribution of 6,426,280.30yuan) accounting for 70% of the aforesaid registered capital, and TIPC made capital contribution of 18 million yuan withintangible assets of such value (namely the single compressor mixture industrial low temperature refrigeration technology)as evaluated by Jingzhongzi Assets Appraisal Co., Ltd. with issuance of the Appraisal Report (ZZPBZ(2002)No.225)accounting for 30% of the aforesaid registered capital. The paid-in of the above registered capital has been verified byHuazheng Accounting Firm by issuance of the Assets Verification Report (HZYZ (2002) No. B157) dated 16 October2002.In October 2014, according to the relevant provision under the Management Rules on Application of State Owned Assetsby Central Business Organs, TIPC transferred the 30% equity interests held by it in Zhongke Meiling CryogenicTechnology Company Limited to its wholly-owned subsidiary Zhongke Xianxing (Beijing) Assets Management Co., Ltd(hereinafter referred to as Zhongke Xianxing) which would perform management over the operating assets of TIPC. Uponconsideration and approval at the 37
th session of the 7
thBOD of Hefei Meiling Co., Ltd, it is agreed to waive the pre-emptive right.On 10 August 2015, all the founders signed the Founder Agreement of Zhongke Meiling Cryogenic Technology CompanyLimited, pursuant to which, they decided to change the firm type of Zhongke Meiling Cryogenic Technology CompanyLimited to a joint stock company. Based on the net assets of 96, 431,978.25 yuan as audited by Xinyong Zhonghe CPAas of 30 June 2015, an aggregate of 65,000,000 shares have been converted at the proportion of 1:0.67, which are to beheld by the original shareholders according to their respective entitlement. In case that the net assets exceed registeredcapital, the balance shall be recorded in capital reserve. On 28 August 2015, Xinyong Zhonghe CPA reviewed theregistered capital and paid-in thereof in respect of the stock reform, and issued Assets Verification Report(XYZH/2015CDA40161). The Company registered industrial and commercial information on 11 September 2015.On November 25, 2016, the first Extraordinary Shareholders' General Meeting of Zhongke Meiling CryogenicTechnology Co., Ltd. in 2016 considered and approved the Proposal on the Issuance Plan of the Company; ZhongkeMeiling Company issued 3,150,000 shares to specific investors by the non-public offering of shares at 1.63 yuan pershare. The current capital increase was verified by the No.［XYZH/2016CDA40294］capital verification report issuedby ShineWing CPA (special general partnership). After the completion of the issuance, the share capital of ZhongkeMeiling Company increased to 68,150,000 shares and the Company's shareholding ratio was 66.76%.On 15 September 2017, the Proposal of the First Stock Placement of Zhongke Meiling Cryogenic Technology Co., Ltdfor year of 2017 was deliberated and approved by 4
th
session extraordinary of shareholders general meeting of 2017.Zhongke Meiling offering 490,300 shares to specific investors by way of privately placement, which has 1.72 yuan per
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
share in amount. The capital increasement has been verified by the No. ［XYZH/2017CDA40324］capital verificationreport issued by ShineWing CPA (special general partnership). After the completion of shares placement, stock of theCompany increased to 68,640,300 shares and 66.87% held by the Company.On September 9, 2019, the 10
th
Meeting of the 2
nd
BOD and the Fourth Extraordinary Shareholders’ Meeting reviewedand approved the Proposal on the First Stock Issuance Plan of Zhongke Meiling Cryogenic Technology Co., Ltd. in 2019(Revised Version), the number of shares to be issued this time does not exceed 3,907,900 shares (including 3,907,900shares), the issue price is not less than 2.16 yuan per share, and the raised funds are expected to not exceed 8,441,064.00yuan (including 8,441,064.00 yuan). After the completion of the additional issue, the company’s share capital increasedto 72,548,200 shares, which was verified by [No. XYZH/2020CDA30002] “Capital Verification Report” issued by ShineWing Certified Public Accountants (LLP), and the Company’s shareholding ratio was 63.2683%.
2) Sichuan Hongmei Intelligent Technology Co., Ltd. (hereinafter referred to as Hongmei Intelligent) was established onJan. 24, 2014. It is a limited company jointly invested by the Company and Mianyang Meiling Refrigeration Co., Ltd.,being approved by the Industrial and Commerce Bureau of Peicheng District, Mianyang City. The company owesregistered capital of 5 million yuan, including 4.95 million yuan contributed by Changhong Meiling Company in cash,accounted for 99% of the registered capital; Mianyang Meiling Refrigeration Co., Ltd. contributed 50000 yuan in cashwith 1% of the register capital occupied. The above mentioned register capital have been verified by verification reportof Chuanjinlai Yanzi No. [2014] B039 issued by Sichuan Jinlai Accounting Firm Co., Ltd. In July 2016, the shares ofHongmei Intelligent, held by the Company has transferred to Sichuan Changhong AC Co., Ltd., after transferred,Changhong AC has 99% equity of Hongmei Intelligent, the Company has no shares of Hongmei Intelligent directly.
3) Mianyang Meiling Refrigeration Co., Ltd. (hereinafter referred to as Mianyang Meiling), a limited liability companyjointly set up by the Company and China-tech Meiling Company, was founded on Mar. 6, 2009. Its registered capital andpaid-in capital were 50 million yuan upon establishment, of which, the Company invested 45 million yuan, accountingfor 90% of the registered capital; Zhongke Meiling Company invested 5 million yuan, accounting for 10% of theregistered capital. The capital receipt was verified by the verification report [CXKY (2009) No. 008] of Sichuan XingruiCertified Public Accountants. On 19 January 2011, the Company increase 50 million yuan in capital of Mianyang Meiling,of which 95 million yuan invested by the Company, a 95% of total register capital while 5 million yuan invested byZhongke Meiling, a 5% of total capital occupied. The paid-in capital has been verified by Capital Verification Report［XYZH/2010CDA6040］from Chengdu Branch of Shinewing CPA CO., Ltd. In 2011, Zhongke Meiling entered into“Equity Transfer Agreement” with Jiangxi Meiling Refrigeration Co., Ltd. 5 percent equity of Mianyang Meiling held byZhongke Meiling was transferred to Jiangxi Meiling Refrigerator. In September 2013, Jiangxi Meiling Refrigeration wascombined by Jiangxi Meiling Electric Appliance Co., Ltd., than 5 percent equity was transfer to Jiangxi Meiling ElectricAppliance.
4) Jiangxi Meiling Electric Appliance Co., Ltd. (hereinafter referred to as Jiangxi Meiling Electric Appliance) was alimited liability company jointly established by the Company and Mianyang Meiling on 23 May 2011. Register capitalof the company totally as 50 million yuan, 49.375 million yuan invested by the Company, 98.75% in total register capitalwhile 0.625 million yuan invested by Mianyang Meiling, a 1.25% in total register capital occupied. The initial investment
10.50 million yuan was received dated 13 May 2011 with 10 million yuan from the Company and 0.5 million yuan fromMianyang Meiling. Rest of the capital shall be invested fully within 2 years after the joint ventures established accordingto capital requirement. The initial investment capital were verified by the Capital Verification Report [JXKYZi (2011)No. 090] issued from Jingdezhen Xingci CPA Co., Ltd. Second capital 39.5 million yuan was fully funded on 28 July
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
2011, the Company contributed 39.375 million yuan while Mianyang Meiling Company invested 125,000 yuan, thecontributions have been verified by the capital verification report [Jing Xing Kuai Yan Zi (2011) No.: 134] issued fromJDZ Xingci CPA Co., Ltd.
5) Hefei Meiling Wulian Technology Co., Ltd. (hereinafter referred to as Wulian Technology) was established dated 21January 2019 with registered capital of 10 million yuan, and it is the subsidiary of the Company with fully-ownedestablishment. On 19 March 2019, paid in capital is 6 million yuan
6) Hefei Meiling Electric Appliances Marketing Co., Ltd (hereinafter referred to as Meiling Marketing) is the limitedcompany jointly invested by the Company and Mianyang Meiling Company on 21 Oct. 2009. Registered capital andpaid-up capital were 10 million yuan, including 9.9 million yuan invested by the Company, a 99% of the registered capital;Mianyang Meiling Company contributed 0.1 million yuan, a 1% of the registered capital. The above mentioned paid-upregister capital have been verified by verification report of [Wan An Lian Xin Da Yan Zi (2009) No. 074] issued by AnhuiAn Lian Xin Da Accounting Firm Co., Ltd. On 25 Nov. 2010, the Company increased capital 45 million yuan, registeredcapital amounting to 55 million yuan, including 54.9 million yuan contributed by the Company, a 99.82% of the registeredcapital, while Mianyang Meiling invested 0.1 million yuan, a 0.18% of the registered capital. The increased capital hasbeen verified by verification report of [Wan Hua Shen Zheng Da Kuai Yan Zi (2010) No. 1514] issued by Anhui HuaShen Zhengda CPA Co., Ltd.
7) Wuhan Meizirong Electrical Marketing Co., Ltd (hereinafter referred to as Wuhan Meizirong) was established dated10 January 2011 with registered capital of 5 million yuan; Meiling Marketing invested 4.60 million yuan, accounted for 92%of the registered capital.
8) Hefei Meiling Nonferrous Metal Products Co., Ltd. (hereinafter referred to as Nonferrous Metal) was the Sino-foreignjoint venture jointly set up by original Meiling Group, Hefei Meiling Copper Co., Ltd. And Singapore Kim Shin Development Co., Ltd.,which have been originally approved by the [WJMWFZZ (1996) No.349] of Foreign Trade and Economic Committee ofAnhui Province. Its registered capital was US$ 2.92 million upon establishment, of which, original Meiling Groupinvested US$ 1.46 million (monetary capital), accounting 50% of the registered capital, Hefei Meiling Copper Co., Ltdinvested US$ 0.584 million (monetary capital of RMB 0.18 million and real assets of US$ 0.404 million), accounting 20% of registeredcapital while Singapore Kim Shin Development Co., Ltd invested US$ 0.876 million (monetary capital), accounting 30% ofthe registered capital. The above mentioned investment verified by the verification report of [HSWZ (1995) No. 0737],[HSWZ (1996) No. 328] and [HSWZ (1998) No. 088] from Anhui CPAs Co., Ltd. In July 2008, approved by [HWS(2008) No.53] from Foreign Trade Economic Cooperation Bureau of Hefei City, 30% equity and 20% equity held bySingapore Kim Shin Development Co., Ltd and Hefei Meiling Copper Co., Ltd respectively transferred to original Meiling GroupTotally. The Company’s register capital came into 24,286,808.00 yuan after transference, and was not the joint-ventureany more.
9) Changhong Meiling Ridian Technology Co., Ltd. (hereinafter referred to as Ridian Technology) is a limited liabilitycompany invested and established by Sichuan Changhong Electric Co., Ltd. (hereinafter referred to as SichuanChanghong) and Sichuan Changhong Motor Transport Co., Ltd. (hereinafter referred to as Changhong Motor TransportCompany) on May 25, 2016. The registered capital and paid-in capital are 40 million yuan, of which Sichuan Changhonghas invested 32 million yuan by monetary capital, accounting for 80% of the registered capital; Changhong MotorTransport Company has invested 8 million yuan, accounting for 20% of the registered capital. The official receipts of
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
registered capital have been verified by original Sichuan Junhe Accounting Firm [No. JHYZ (2006) 3027]. RidianTechnology increased registered capital of 43 million yuan on January 4, 2007, changing from 40 million yuan to 83million yuan, for the newly increased 43 million yuan, Sichuan Changhong invested 1.8 million yuan, GuangdongXiongfeng Electric Co., Ltd. invested 40 million yuan, and Kou Huameng and other 9 natural person shareholdersinvested 1.2 million yuan, at the same time, the shareholders' meeting considered and agreed to transfer the investmentof 8 million yuan of Changhong Motor Transport Company to Sichuan Changhong Venture Investment Co., Ltd, thestructure of the registered capital after changes was that Sichuan Changhong invested 33.8 million yuan, accounting for
40.72%; Guangdong Xiongfeng Electric Co., Ltd. invested 40 million yuan, accounting for 48.19%; Sichuan ChanghongVenture Investment Co., Ltd Invested 8 million yuan, accounting for 9.64%; Kou Huameng and other 9 natural personshareholders invested 1.2 million yuan, accounting for 1.45%. The change of registered capital was verified by ZhongshanPromise Accounting Firm [No. ZCHZ (2007)501010].On February 18, 2009, seven natural person shareholders transferred total 0.76% stock rights to Hu Zhiheng, after thetransfer, the registered capital of Changhong Ridian was still 83 million yuan, the structure of registered capital afterchanges was that Sichuan Changhong invested 33.8 million yuan, accounting for 40.72%; Guangdong Xiongfeng ElectricCo., Ltd. invested 40 million yuan, accounting for 48.19%; Sichuan Changhong Venture Investment Co., Ltd invested 8million yuan, accounting for 9.64%; Hu Zhiheng and other two natural person shareholders invested 1.2 million yuan,accounting for 1.45%.On October 9, 2014, Changhong Ridian held the shareholders meeting which considered and agreed Kou Huameng totransfer its stock rights of total 250,000 yuan which accounts for 0.301% of the Ridian Technology’s registered capital toSichuan Changhong Venture Investment Co., Ltd at the cost of 317,802 yuan. The other shareholders of the RidianTechnology waived the right of pre-emption. On December 11, 2014, Ridian Technology held the shareholders meetingwhich considered and agreed Guangdong Xiongfeng Electric Co., Ltd. to transfer its stock rights of total 40 million yuanwhich accounts for 48.19 % of the company's registered capital to Sichuan Changhong Electric Co., Ltd. at the cost of43,977,300 yuan. The other shareholders of the Ridian Technology waived the right of pre-emption. The structure ofregistered capital after changes was that Sichuan Changhong invested 73.8 million yuan, accounting for 88.92%; SichuanChanghong Venture Investment Co., Ltd Invested 8.25 million yuan, accounting for 9.94%; Hu Zhiheng and anothernatural person shareholder invested 950,000 yuan, accounting for 1.14%.On 4 January 2016, Sichuan Changhong and Sichuan Changhong Venture Investment Co., Ltd. transferred total 98.855%equity of the Ridian Technology to the Company. After the transfer, the Company directly holds 98.855% stock rights ofRidian Technology.On 7 April 2020, Ridian Technology convened the shareholders’ meeting, and agreed the Wu Chang yuan to transferredtotal 0.18% equity of the Ridian Technology to the Company. After the transfer, the Company directly holds 99.0361%stock rights of Ridian Technology.
10) CHANGHONG MEILING ELECTRIC INDONESIA, PT.(hereinafter referred to as Indonesia Meiling) is asubsidiary established in Indonesia and jointly invested by Zhongshan Changhong and Sichuan Changhong in 2016, thecompany’s registered capital is 6 million US dollars, of which Zhongshan Changhong subscribed and paid 5.88 millionUS dollars in cash, accounting for 98% of the registered capital, Changhong Air Conditioning subscribed and paid120,000 US dollars in cash, accounting for 2% of the registered capital. On 4 July 2017, rests of the 2.94 million USdollars are subscribed by Zhongshan Changhong in line with the agreement.
11) Changhong Ruba Trading Company (Private) Limited (hereinafter referred to as Changhong Ruba) was a joint ventureestablished by Zhongshan Changhong Appliances Company Limited and RUBA GENERAL TRADING FZE Company
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
(“RUBA”) on 5 August 2011 with the approval from Guangdong Development and Reform Commission by issuance ofthe Approval Relating to Joint Construction of a Manufacturing and Selling Platform Project in Pakistan by ZhongshanChanghong Appliances Company Limited (YFGWZ(2011)958). The resolution of the second extraordinary shareholders'meeting of Zhongshan Changhong in 2016 passed the "Proposal on the Company's Capital Increase to Changhong RubaTrading Company (Private) Limited", and agreed that the company and UAE RUBA Company jointly increase capital toChanghong Ruba Trading Company(Private) Limited which was invested by both sides in Pakistan at an earlier stage,Zhongshan Changhong invested 3.84 million US dollars in this capital increase, and UAE RUBA Company invested 2.56million US dollars, the shares held by both sides remained unchanged. After the capital increase, the company’s registeredcapital became 12.4 million US dollars, of which Zhongshan Changhong Home Appliances Company Limited invested
7.44 million US dollars in cash, shareholding ratio was 60%, UAE RUBA Company invested 4.96 million US dollars incash, and shareholding ratio was 40%.
12) Sichuan Changhong Air Conditioning Co., Ltd. (hereinafter referred to as Changhong Air Conditioner), a limitedliability company jointly set up by Sichuan Changhong and Changhong Chuangtou, was founded on November 28, 2008.Its registered capital was 200 million yuan upon establishment, of which, Sichuan Changhong invested 298 million yuan( 210,088,900 yuan invested by monetary capital while 87,911,100 yuan invested by real material), equivalent to 198million yuan shares, accounting for 99% of the registered capital; and Changhong Chuangtou invested 3 million yuan,accounting for 1% of the registered capital with equivalent of 2 million yuan shares. The registered capital receipt wasverified by the verification report [CGYYZ (2008) No. 177] of Sichuan Guang yuan Certified Public Accountants Co.,Ltd. and [HLTHYZ (2008) No. 12-006] of Sichuan Henglitai Certified Public Accountants Co., Ltd. In December 2009,the Company obtained 100% equity of Changhong Air-conditioner by consolidated under the same control. In 2017, theCompany increased capital of 650 million yuan to Changhong Air Conditioner, after capital increased, registered capitalof Sichuan Changhong comes to 850 million yuan from 200 million yuan, shareholding still counted as 100%.
13) Zhongshan Changhong Electric Co., LTD (hereinafter referred to as Zhongshan Changhong), was the originalGuangdong Changhong Electric Co., Ltd., and is a limited liability company jointly set up by Sichuan Changhong andChina Minmetals on May 22, 2001. Its registered capital was RMB 80 million upon establishment, of which, SichuanChanghong invested 72 million yuan, including 69.3 million yuan biding for the estate/non-estate from originalZhongshan Sanrong Air-conditioner Co., Ltd. And its patent use-right of 2.7 million yuan, accounting for 90% of theregistered capital; Chine Minmetals invested 8 million yuan in monetary capital accounting 10% of the registered capital.The Company changed its name originally from Guangdong Changhong Electric Co., Ltd in July 2003. In December2009, the Company obtained 90% equity of Zhongshan Changhong by consolidated under same control. 10% equity heldby China Minmetals has been transferred by Changhong Air-conditioner on April 11, 2010. On 25 May 2014, theCompany increased 36 million yuan to Zhongshan Changhong, and Changhong AC increased 4 million yuan. In 2016,according to the overseas development strategy of the Company and the development and operation needs of thesubsidiaries, the Company and the wholly-owned subsidiary Changhong Air Conditioning have increased capital of 64million yuan to Zhongshan Changhong according to the existing shareholding ratio, among which the capital increase ofthe Company was 57.6 million yuan, and the capital increase of Changhong Air Conditioning was 6.4 million yuan. Afterthe completion of this capital increase, the registered capital Zhongshan Changhong shall increase to184 million yuan,the shareholding ratio of the company and Changhong Air Conditioning remained unchanged and was still 90% and 10%,of which the Company invested 165.6 million yuan, accounting for 90% of the registered capital, Changhong AirConditioning invested 18.4 million yuan, accounting for 10% of the registered capital. In March 2020, in accordance withthe Company’s overseas development strategy and the operation and development needs of its subsidiaries, the Company
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
and its wholly-owned subsidiary Changhong Air Conditioning increased capital of 150 million yuan to ZhongshanChanghong according to the existing shareholding ratios, of which the Company increased capital of 135 million yuan,Changhong Air-Conditioning increased capital of 15 million yuan. After the completion of capital increase, the registeredcapital of Zhongshan Changhong has increased to 334 million yuan. The Company’s and Changhong’s shareholdingratios in Zhongshan Changhong remain unchanged at 90% and 10%, of which the Company funded 300.6 million yuan,accounting for 90% of the registered capital, while Changhong Air Conditioning funded 33.4 million yuan, accountingfor 10% of the registered capital.
14) Hefei Meiling Group Holdings Limited (hereinafter referred to as Meiling Group), was the state-owned company originallyapproved by People’s Government of Hefei Province and established authorized by SASAC of Hefei City. On July 14, 2008, 100%state-owned equity of Meiling Group has freely transferred to Xingtai Holding by Hefei SASAC. Agreement by theapproval of < State-owned property agreement transfer from Meiling Group> [ HGZCQ (2010) No.34] of Hefei SASACon April 9, 2010, 100% state-owned property of Meiling Group after partial assets and liabilities separated transferred tothe Company from Xingtai Holding as amount of 113.2 million yuan. The re-registration of industrial and commercialprocedure for Meiling Group after separated partial assets liability has finished on July 28, 2010. The new Meiling Grouphas register capital of 80 million yuan, and has been verified by the [AD (2010) YZD No. 016] from Anhui Auding CPAsCo., Ltd.
15) Meiling EquatorHousehold Appliance (Hefei) Co., Ltd. (hereinafter referred to as EquatorHousehold Appliance) was theSino-foreign joint venture jointly set up by original Meiling Group and EQUATOR INVESTMENTS (USA) INC. (EQUATORfor short), which have been approved by the [SWZWFZZ(2004) No.0103] of Approval Certificate of Foreign Enterprisefrom People’s Government of Anhui Province. Its registered capital was US$ 3 million upon establishment, of which,Sino company invested US$ 2.25 million in machinery equipment, accounting 75% of the registered capital while foreigncompany invested US$ 0.5 million in monetary capital and US$ 0.25 million in intangible assets, amounting to US$0.75million, accounting 25% of the registered capital. The above mentioned investment verified by the verification report of[WYAYZ (2004) No. 135] from Anhui Yongan CPAs Co., Ltd. In July 2007, approved by [HWJ (2007) No.136] fromForeign Trade Economic Cooperation Bureau of Hefei City, 25% equity held by EQUATOR transferred to Anhui MeilingElectric Co., Ltd. Totally. The Company’s register capital came into 24,793,200 yuan after transference, and was not thejoint-venture any more. 25% equity owned by Anhui Meiling Electric Co., Ltd has been transferred totally to originalMeiling Group in July 2009.
16) Hefei Equator Appliance Co., Ltd. (hereinafter referred to as Equator Appliance) was jointly set up by original Meiling Group
and Yingkaite Appliance on September 26, 2007. Its register capital was 12 million yuan, among which, original MeilingGroup invested 8,670,600 yuan in monetary capital, accounting 72.255% in registered capital; Equator Applianceinvested 3,329,400 yuan in the assessment value of intangible assets (land-use right), accounting 27.745% of totalregistered capital. The investment being verified by [WYAZ (2004) No. 135] from Anhui Yongan CPAs Co., Ltd.
17) Hong Yuan Ground Energy Heat Pump Technology Co., Ltd. (hereinafter referred to as Hong Yuan Ground Energy)was established on 28 August 2015, it is a limited liability company authorized by Administration for Industry andCommerce of Peicheng District, Mianyang, Sichuan, contributed by Sichuan Changhong Air Conditioner Co., Ltd(hereinafter referred to as Changhong Air Conditioner) and Hengyou yuan Technology Development Group Co., Ltd.together. Registered capital amounted as 50 million yuan, including 25.5 million yuan contributed by Changhong AirConditioner in cash, a 51% in total registered capital; Hengyou yuan Technology Development Group Co., Ltd. invested
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
24.5 million yuan in cash, a 49% in registered capital.
18) Hong Yuan Ground Energy Heat Pump Tech. (Zhongshan) Co., Ltd.(hereinafter referred to as Hong yuan Zhongshan)was established and invested on 18 July 2017 with registered capital of 15 million yuan, The Hong Yuan Ground EnergyHeat Pump Tech. Co., Ltd contributed 1.5 million yuan with own funds and takes 100% in the registered capital.In 2018,the shareholders of the Hong yuan Zhongshan decided to increase capital of 30 million yuan, and contributed by theshareholder Hong Yuan Ground Energy; thus registered capital of Hong yuan Zhongshan up to 45 million yuan
19) Meiling Candy Washing Machine Co., Ltd. (hereinafter referred to as Meiling Candy) was established and registeredon 27 April 2017, which was contributed by the Company and Candy Hoover Group S.r.l. together. Registered capitalcounted as 150 million yuan, including 90 million yuan invested by the Company, a 60% in registered capital.
20) Guangzhou Changhong Trading Co., Ltd. (hereinafter referred to as Changhong Trading) was established on 6 Jan.2017, the wholly-owned subsidiary of Zhongshan Changhong Electric Co., LTD (hereinafter referred to as ZhongshanChanghong) with registered capital of one million yuan
21) Hebei Hongmao Household Appliance Technology Co., Ltd (hereinafter referred to as Hebei Hongmao) wasestablished on 21 July 2017 with registered capital of 5 million yuan. Changhong Ridian invested 5 million yuan by ownfund and takes 100% in registered capital.
22) Anhui Tuoxing Technology Co., Ltd. (hereinafter referred to as Tuoxing Technology) was established on 20 May2019 with registered capital of 10 million yuan and it is the subsidiary of Zhongke Meiling with fully-ownedestablishment. As of June 30, 2021, actually 5 million yuan contributed.
23) CH-Meiling.International (Philippines) Inc. was established on 13 February 2020 in Philippines with registeredcapital of US$ 1,000,000, takes 100% of the equity. As of June 30, 2021, the Company has invested US$ 1,000,000,
24) Hefei Changhong Meiling Life Electric Co., Ltd was established on 24 December 2020, jointly established by theCompany and Ningbo Hongling Enterprise Management Partnership (Limited Partnership). the Company contributed 35million yuan, representing 70% of the equity while 15 million yuan invested by Ningbo Hongling Enterprise ManagementPartnership (Limited Partnership), a 30% takes in the equity. The paid-in capital contribution from the Company andNingbo Hongling Enterprise Management Partnership (Limited Partnership) has been completed on January 21, 2021and on January 18, 2021 respectively.
25) Anhui Ling’an Medical Equipment Co., Ltd. (hereinafter referred to as Ling’an Medical) was established on 4September 2021, which is a wholly-owned subsidiary of Zhongke Meiling, and registered capital of 10 million yuan. OnJune 29, 2021, Zhongke Meiling actually contributed 10 million yuan, accounting for 100% of the registered capital.
(2) Major non-wholly-owned subsidiary
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
| Subsidiary | Shareholding ratio of minority | Gains/losses attributable to minority in Current Period | Dividend distributed to minority announced in Current Period | Balance of minority’s interest at period-end |
| Zhongke Meiling | 36.7317% | 12,847,677.86 | 21,318,560.00 | 82,651,413.42 |
| Ground Energy | 49.00% | -2,799,196.80 | 18,254,403.84 | |
| Ridian Technology | 0.9639% | 17,674.12 | 1,336,747.61 | |
| Meiling Life Appliances | 30.00% | 2,626,607.19 | 26,736,159.74 |
(3) Financial information for major non-wholly-owned subsidiary
| Subsidiary | Ending balance | |||||
| Current assets | Non-current assets | Total assets | Current liability | Non-current liability | Total liabilities | |
| Zhongke Meiling | 304,506,787.02 | 155,860,330.99 | 460,367,118.01 | 218,415,104.39 | 16,938,268.93 | 235,353,373.32 |
| Ground Energy | 139,050,914.69 | 21,187,129.74 | 160,238,044.43 | 122,730,504.51 | 253,654.54 | 122,984,159.05 |
| Ridian Technology | 242,076,461.93 | 44,379,277.31 | 286,455,739.24 | 147,021,172.76 | 747,001.92 | 147,768,174.68 |
| Meiling Life Appliances | 484,426,059.03 | 302,642.82 | 484,728,701.85 | 395,608,169.40 | 395,608,169.40 | |
(Continued)
| Subsidiary | Opening balance | |||||
| Current assets | Non-current assets | Total assets | Current liability | Non-current liability | Total liabilities | |
| Zhongke Meiling | 371,876,985.25 | 153,246,440.33 | 525,123,425.58 | 260,324,038.65 | 16,724,150.21 | 277,048,188.86 |
| Ground Energy | 167,092,910.84 | 23,932,195.59 | 191,025,106.43 | 147,765,923.82 | 292,650.70 | 148,058,574.52 |
| Ridian Technology | 256,926,013.09 | 46,283,555.98 | 303,209,569.07 | 165,637,349.70 | 718,345.11 | 166,355,694.81 |
| Meiling Life Appliances | 421,039,031.17 | 169,482.39 | 421,208,513.56 | 340,843,338.42 | 340,843,338.42 | |
(Continued)
| Subsidiary | Current Period | |||
| Operation income | Net profit | Total comprehensive income | Cash flow from operation activity | |
| Zhongke Meiling | 235,704,905.75 | 34,977,067.97 | 34,977,067.97 | -22,750,957.05 |
| Ground Energy | 50,705,949.97 | -5,712,646.53 | -5,712,646.53 | -63,167,443.52 |
| Ridian Technology | 121,903,975.39 | 1,833,690.30 | 1,833,690.30 | -2,113,312.10 |
| Meiling Life Appliances | 618,374,856.05 | 8,755,357.31 | 8,755,357.31 | 47,550,153.24 |
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
(Continued)
| Subsidiary | Last Period | |||
| Operation income | Net profit | Total comprehensive income | Cash flow from operation activity | |
| Zhongke Meiling | 271,384,729.79 | 51,828,122.35 | 51,828,122.35 | 44,525,447.06 |
| Ground Energy | 49,226,548.73 | -10,132,057.22 | -10,132,057.22 | -57,732,313.13 |
| Ridian Technology | 152,108,811.31 | -2,059,812.01 | -2,059,812.01 | -206,486,307.38 |
| Meiling Life Appliances | 486,144,189.56 | 17,370,883.75 | 17,370,883.75 | 61,431,363.80 |
(4) Major limitation on using enterprise group’s assets and liquidate debts of enterprise group: nil
(5) Offering financial supporting or other supports for structured entity that included in consolidationstatement scope: nil
2. Changes of owner’ equity shares in subsidiary and its impacts: nil
3. Equity in joint venture or associate enterprise
(1) Major joint venture or associate enterprise
| Joint venture or associate enterprise | Main office place | Register place | Business nature | Shareholding ratio（%) | Accounting treatment for investment of joint venture or associate enterprise | |
| Directly | Indirectly | |||||
| Associated companies： | ||||||
| 1.Changhong Ruba Electric Company (Private)Ltd. | Lahore, Pakistan | Lahore | Manufacturing and sales | 40.00 | Equity | |
| 2.Hefei Xingmei Assets Management Co., Ltd. | Hefei | Hefei | Rental, agency | 48.28 | Equity | |
| 3.Sichuan Zhiyijia Network Technology Co., Ltd. | Mianyang | Mianyang | Sales | 50.00 | Equity | |
| 4.Hong Yuan Ground Energy Heat Tech. Co., Ltd | Mianyang | Mianyang | R & D, sales, after-sales | 49.00 | Equity | |
| 5.Sichuan Tianyou Guigu Technology Co., Ltd | Mianyang | Mianyang | Manufacturing and sales | 25.00 | Equity | |
| 6.Chengdu Guigu Environmental Tech. Co., Ltd | Chengdu | Chengdu | R&D, manufacturing and sales | 25.00 | Equity | |
(2) Financial information for major Joint venture: nil
(3) Financial information for associate enterprise
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
| Item | Ending balance/Current Period | |||||
| Changhong Ruba Electric Company(Private)Ltd. | Hefei Xingmei Assets Management Co., Ltd. | Sichuan Zhiyijia Network Technology Co., Ltd. | Hong Yuan Ground Energy Heat Tech. Co., Ltd | Sichuan Tianyou Guigu Technology Co., Ltd | Chengdu Guigu Environmental Tech. Co., Ltd | |
| Current assets | 115,822,999.43 | 44,689,824.37 | 4,539,911,822.65 | 39,312,447.05 | 13,512,755.81 | 44,124,500.11 |
| Including: cash and cash equivalent | 7,300,923.91 | 20,072,152.50 | 2,377,264,858.26 | 26,568.04 | 5,633,698.08 | 19,283,218.08 |
| Non-current assets | 34,151,444.94 | 6,357,713.73 | 7,486,157.09 | 12,352.49 | 1,322,469.48 | |
| Total assets | 149,974,444.37 | 44,689,824.37 | 4,546,269,536.38 | 46,798,604.14 | 13,525,108.30 | 45,446,969.59 |
| Current liability | 177,107,936.27 | 4,399,289.56 | 4,453,320,440.26 | 5,694,974.02 | 1,350,530.81 | 10,727,625.88 |
| Non-current liability | 1,372,236.18 | 2,696,009.39 | ||||
| Total liabilities | 177,107,936.27 | 4,399,289.56 | 4,454,692,676.44 | 5,694,974.02 | 1,350,530.81 | 13,423,635.27 |
| Minority's interest | 1,100,054.64 | |||||
| Equity attributable to shareholder of parent company | -27,133,491.90 | 40,290,534.81 | 91,576,859.94 | 41,103,630.12 | 12,174,577.49 | 30,923,279.68 |
| Share of net assets measured by shareholding | -10,853,396.76 | 19,452,270.21 | 45,788,429.97 | 20,140,778.76 | 3,043,644.37 | 7,730,819.92 |
| Adjustment | ||||||
| --Goodwill | 821,877.28 | 1,416,227.93 | ||||
| Unrealized profit of the internal downstream transactions | 9,392,876.21 | 80,105.51 | 5,418.64 | |||
| Unrealized profit of the internal upstream transactions | ||||||
| Other | 10,853,396.76 | |||||
| Book value of the equity investment for associate enterprise | 19,452,270.21 | 37,217,431.04 | 20,060,673.25 | 3,043,644.37 | 9,141,629.21 | |
| Fair value of equity investment for the affiliates with consideration publicly | ||||||
| Operation income | 114,113,833.32 | - | 5,469,059,501.77 | 94,133.06 | 3,778,843.34 | 24,509,987.79 |
| Financial expenses | 70,820.09 | -27,341.72 | -22,176,910.19 | 267.75 | -57,394.00 | -289,738.80 |
| Income tax expenses | 1,215,849.99 | 3,252,674.65 | 554,942.41 | |||
| Net profit | -14,180,304.24 | 9,758,023.96 | 1,646,585.39 | -1,163,205.15 | 260,813.27 | 123,763.39 |
| Other comprehensive income | 2,115,738.30 | |||||
| Total comprehensive income | -12,064,565.94 | 9,758,023.96 | 1,646,585.39 | -1,163,205.15 | 260,813.27 | 123,763.39 |
| Dividend received | 5,069,400.00 | |||||
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
| Item | Ending balance/Current Period | |||||
| Changhong Ruba Electric Company(Private)Ltd. | Hefei Xingmei Assets Management Co., Ltd. | Sichuan Zhiyijia Network Technology Co., Ltd. | Hong Yuan Ground Energy Heat Tech. Co., Ltd | Sichuan Tianyou Guigu Technology Co., Ltd | Chengdu Guigu Environmental Tech. Co., Ltd | |
| from associate enterprise in Current Period | ||||||
(Continued)
| Item | Opening balance/Last Period | |||||
| Changhong Ruba Electric Company(Private)Ltd. | Hefei Xingmei Assets Management Co., Ltd. | Sichuan Zhiyijia Network Technology Co., Ltd. | Hong Yuan Ground Energy Heat Tech. Co., Ltd | Sichuan Tianyou Guigu Technology Co., Ltd | Chengdu Guigu Environmental Tech. Co., Ltd | |
| Current assets | 89,100,592.52 | 44,306,769.36 | 3,562,320,255.30 | 39,551,631.60 | 12,815,224.66 | 49,157,432.66 |
| Including: cash and cash equivalent | 3,601,992.73 | 15,092,065.72 | 1,735,103,036.41 | 41,161.98 | 6,480,537.53 | 28,252,926.12 |
| Non-current assets | 37,062,073.18 | 2,831,773.02 | 7,359,768.31 | 8,286,398.47 | 12,352.49 | 1,325,807.70 |
| Total assets | 126,162,665.70 | 47,138,542.38 | 3,569,680,023.61 | 47,838,030.07 | 12,827,577.15 | 50,483,240.36 |
| Current liability | 141,231,591.66 | 6,054,518.27 | 3,478,330,845.92 | 5,571,194.80 | 913,812.93 | 16,058,351.93 |
| Non-current liability | 1,418,903.14 | 2,525,317.50 | ||||
| Total liabilities | 141,231,591.66 | 6,054,518.27 | 3,479,749,749.06 | 5,571,194.80 | 913,812.93 | 18,583,669.43 |
| Minority's interest | 1,102,582.39 | |||||
| Equity attributable to shareholder of parent company | -15,068,925.96 | 41,084,024.11 | 89,930,274.55 | 42,266,835.27 | 11,913,764.22 | 30,796,988.54 |
| Share of net assets measured by shareholding | -6,027,570.38 | 19,835,366.84 | 44,965,137.28 | 20,710,749.28 | 2,978,441.06 | 7,699,247.14 |
| Adjustment | ||||||
| --Goodwill | 821,877.28 | 1,416,227.93 | ||||
| Unrealized profit of the internal downstream transactions | 11,702,988.94 | 80,635.11 | 4,252.12 | 7,510.11 | ||
| Unrealized profit of the internal upstream transactions | ||||||
| Other | 6,027,570.38 | |||||
| Book value of the equity investment for associate enterprise | 19,835,366.84 | 34,084,025.62 | 20,630,114.17 | 2,974,188.94 | 9,107,964.96 | |
| Fair value of equity investment for the affiliates with consideration publicly | ||||||
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
| Item | Opening balance/Last Period | |||||
| Changhong Ruba Electric Company(Private)Ltd. | Hefei Xingmei Assets Management Co., Ltd. | Sichuan Zhiyijia Network Technology Co., Ltd. | Hong Yuan Ground Energy Heat Tech. Co., Ltd | Sichuan Tianyou Guigu Technology Co., Ltd | Chengdu Guigu Environmental Tech. Co., Ltd | |
| Operation income | 129,037,750.98 | 5,593,676,163.39 | 1,673,087.14 | 718,023.89 | 7,596,668.97 | |
| Financial expenses | 387,772.68 | 236,147.00 | -33,239,098.14 | 338.80 | -59,414.10 | -51,562.20 |
| Income tax expenses | 1,709,882.92 | 147,397.82 | ||||
| Net profit | 7,290,919.13 | -967,324.02 | -27,599,431.03 | -1,875,733.81 | -226,371.54 | -1,079,748.77 |
| Net profit of discontinuing operation | ||||||
| Other comprehensive income | -148,798.81 | |||||
| Total comprehensive income | 7,142,120.32 | -967,324.02 | -27,599,431.03 | -1,875,733.81 | -226,371.54 | -1,079,748.77 |
| Dividend received from associate enterprise in Current Period | ||||||
(4) Financial summary for non-important Joint venture and associate enterprise
| Item | Ending balance/Current Period | Opening balance/Last Period |
| Associated companies： | ||
| Total book value of investment | ||
| Total amount measured by shareholding ratio | ||
| --Net profit | -129,133.66 | |
| --Other comprehensive income | ||
| -- Total comprehensive income | -129,133.66 |
(5) Major limitation on capital transfer ability to the Company from joint venture or affiliates: Nil
(6) Excess loss occurred in joint venture or affiliates
Hefei Meiling Solar Energy Technology Co., Ltd and Changhong Ruba Electric Company (Private) Ltd.have losses above the quota.
(7) Unconfirmed commitment with joint venture investment concerned: Nil
(8) Intangible liability with joint venture or affiliates investment concerned: Nil
4. Major conduct joint operation: Nil
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
5. Structured body excluding in consolidate financial statement: Nil
IX. Relevant risks related with financial instrument
The major financial instruments of the Company include borrowings, account receivables, accountpayable, Trading financial assets, Trading financial liability, the details of which are set out in NoteVI.Risks related to these financial instruments include exchange risks and interest rate risks. Themanagement of the Company controls and monitors the risk exposures to ensure the above risks areunder control.In connection with exchange risks, in order to prevent from exchange risks arising from foreign currencytransaction amount, foreign currency dominated loans and interest expenditure, the Company enteredinto several forward exchange contracts with banks. Fair value of the forward exchange contract whichhas been recognized as derivative financial instrument has been included in profits and losses. As exportbusiness is increasing, if risks that are out of control of the Company occur such as appreciation of RMB,the Company will mitigate the relevant risks by adjusting its sales policy.The Company’s interest rate risk arises from bank borrowings and interest-bearing debt. Financialliabilities at floating rate expose the Company to cash flow interest rate risk, and financial liabilities atfixed rate expose the Company to fair value interest rate risk. The Company will determine therespective proportion of contracts at fixed and floating rates based on the prevailing market conditions.As of 30 June 2022, the interest-bearing debts mainly referred to borrowing contracts at floating ratedenominated in RMB with total amount of 1,077,040,918.37 yuan, the floating rate loan contractmeasured by RMB amounted as 188,000,000.00 yuan in total; Risks relating to change of fair value offinancial instruments arising from movement of interest rate mainly related to bank borrowings at fixedrate. As for borrowings at fixed rate, the Company aims to keep its floating rate. Risks relating to changeof cash flow of financial instruments arising from movement of interest rate mainly related to bankborrowings at floating rate. The Company establishes its policy to keep floating rate for theseborrowings so as to eliminate fair value risk arising from movement of interest rate.X. Fair value disclosure
1. Asset and liability measured by fair value at end of Current Period and fair value measurementlevel
| Item | Fair value at period-end | |||
| 1st level | 2nd level | 3rd level | Total | |
| I. Continuous fair value measurement | — | — | — | — |
| (i) Trading financial assets | 47,475,394.08 | 160,709,401.15 | 208,184,795.23 | |
| 1.Financial assets measured at fair value and whose changes are included in | 47,475,394.08 | 160,709,401.15 | 208,184,795.23 | |
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
| Item | Fair value at period-end | |||
| 1st level | 2nd level | 3rd level | Total | |
| current gains/losses | ||||
| Including: Derivative financial assets | 47,475,394.08 | 47,475,394.08 | ||
| Principal and Interest of Wealth Management Products | 160,709,401.15 | 160,709,401.15 | ||
| (ii) Other non-current financial assets | 38,239,153.07 | 537,961,488.43 | 576,200,641.50 | |
| (iii) Receivables financing | 1,380,100,294.09 | 1,380,100,294.09 | ||
| Total assets continuously measured at fair value | 47,475,394.08 | 198,948,554.22 | 1,918,061,782.52 | 2,164,485,730.82 |
| (iv) Trading financial liability | 38,929,244.41 | 38,929,244.41 | ||
| 1. Financial liabilities measured by fair value and with variation reckoned into current gains/losses | 38,929,244.41 | 38,929,244.41 | ||
| Including: Derivative financial liability | 38,929,244.41 | 38,929,244.41 | ||
| Total liabilities continuously measured at fair value | 38,929,244.41 | 38,929,244.41 | ||
2. The basis for determining the market price of continuous and non-continuous first-level fair valuemeasurement itemsThe company's fair value measurement items are futures contracts and foreign exchange options.The market price of futures contracts is determined based on the closing price of the futures contractat the end of the period; the market price of foreign exchange options is determined based on thequotation of contract products of the foreign exchange options at the end of the period.
3. Qualitative and quantitative information on the valuation techniques used and importantparameters for continuous and non-continuous second-level fair value measurement itemsThe fair value measurement items are long-term investments in the fund company. For long-terminvestments in fund companies, the assessed book value can represent the best estimate of fair valuewithin the scope.
4. Qualitative and quantitative information on the valuation techniques used and importantparameters for continuous and non-continuous third-level fair value measurement itemsThe items with fair value measurement refer to the investment of Sichuan Changhong GroupFinance Co., Ltd and Huishang Bank Co., Ltd. As the unlisted equity instrument, the fair value areestimated using a range of valuation models, the assumptions used are not supported by observable
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
market prices or interest rates. We believes that the fair value and their changes estimated byvaluation techniques are reasonable and are the most appropriate values at the balance sheet date.
XI. Related parties and related transaction(I) Relationship of related parties
1. Controlling shareholder and ultimate controller
(1) Controlling shareholder and ultimate controller
| Controlling shareholder and ultimate controller | Registration place | Business nature | Registered capital | Share-holding ratio in the Company | Voting rights ratio in the Company |
| Sichuan Changhong Electric Co., Ltd. | Mianyang | Manufacture and sales | 4,616,244,222.00 | 27.36% | 27.36% |
Sichuan Changhong Electronics Holding Group is the controlling shareholder of Sichuan Changhong Electric Co.,LTD, and the SASAC Mianyang office holds90% equity interests of Sichuan Changhong Electronic Holding Group,which means that SASAC Mianyang office is the ultimate controller of the Company.
(2) Register capital and change thereof of controlling shareholder
| Controlling shareholder | Opening balance | Increase this period | Decrease this period | Ending balance |
| Sichuan Changhong Electric Co., Ltd. | 4,616,244,222.00 | 4,616,244,222.00 |
(3) Shares held by the controlling shareholder and its changes on equity
| Controlling shareholder | Amount of shares held | Shareholding ratio | ||
| Ending balance | Opening balance | Ratio at period-end | Ratio at period-beginning | |
| Sichuan Changhong Electric Co., Ltd. | 281,832,434.00 | 281,832,434.00 | 27.36% | 26.98% |
2. Subsidiary
Found more in Note “VIII. 1 (1) Enterprise group composition”
3. Joint venture and associated enterprise
Major Joint venture and associated enterprise of the Company found more in Note “VIII. 3 (1) majorjoint venture and associated enterprise”. Other Joint venture and associated enterprise that have relatedtransactions occurred with the Company in Current Period or occurred in last period, and with balanceresults:
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
| Joint venture and associated enterprise | Relationship with the company |
| Hefei Xinmeitai Energy Tech. Co., Ltd. | Associated enterprise of subsidiary Meiling Group |
| Changhong Ruba Electric Company(Private)Ltd | Associated enterprise of subsidiary Zhongshan Changhong |
| Hefei Xingmei Assets Management Co., Ltd. | Associated enterprise of the Company |
| Sichuan Zhiyijia Network Technology Co., Ltd. | Associated enterprise of the Company, has the same controlling shareholder and actual control of the Company |
| Hong Yuan Ground Energy Heat Tech. Co., Ltd | Associated enterprise of subsidiary Changhong Air-conditioner |
| Sichuan Tianyou Guigu Technology Co., Ltd | Associated enterprise of subsidiary Changhong Air-conditioner |
| Chengdu Guigu Environmental Tech. Co., Ltd | Associated enterprise of subsidiary Changhong Air-conditioner |
4. Other related party
| Other related party | Relationship with the company |
| Hefei Changhong New Energy Technology Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Changhong Jijia Fine Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Changhong Minsheng Logistics Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Service Exp. Appliance Service Chain Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Changhong Precision Electronics Tech. Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Changhong Moulding Tech. Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Zhongshan Guanghong Moulding Tech. Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Changhong Huayi Compressor Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Changhong Grand-Pro Technology Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Hunan Grand-Pro Intelligent Tech. Company | Control by same controlling shareholder and ultimate controller |
| PT.CHANGHONG ELECTRIC INDONESIA | Control by same controlling shareholder and ultimate controller |
| CHANGHONG (HK) TRADING LIMITED | Control by same controlling shareholder and ultimate controller |
| CHANGHONG.ELECTRIC.(AUSTRALIA) PTY.LTD. | Control by same controlling shareholder and ultimate controller |
| CHANGHONG ELECTRIC MIDDLE EAST FZCO | Control by same controlling shareholder and ultimate controller |
| Changhong Europe Electric s.r.o | Control by same controlling shareholder and ultimate controller |
| Orion.PDP.Co.,ltd | Control by same controlling shareholder and ultimate controller |
| Sichuan Changhong Device Technology Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Changhong Electronic Products Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Chengdu Changhong Electronic Technology Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Lejiayi Chain Management Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Mianyang Lejiayi Commercial Chain Co., Ltd. | Control by same controlling shareholder and ultimate controller |
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
| Other related party | Relationship with the company |
| Sichuan Hongwei Technology Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Changhong Real Estate Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Changhong New Energy Technology Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Hefei Changhong Industrial Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Changhong International Holdings (Hong Kong) Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Guangdong Changhong Electronics Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Changhong Package Printing Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Changhong Jineng Sunshine Technology Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Changhong Power Source Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Hongxin Software Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Changhong Network Technology Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Guangyuan Changhong Electronic Technology Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Yuanxin Financial Lease Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| 081 Electronic Group Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Changhong International Hotel Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Changhong International Travel Service Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Aichuang Science & Technology Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Changhong Intelligent Manufacturing Technology Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Changhong Property Service Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Huanyu Industrial Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Jiahong Industrial Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Ailink Technology Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Changhong Gerun Environmental Protection Tech. Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Huafeng Enterprise Group Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Changhong Group Finance Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Aoku Technology Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Ansify Technology Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Guang yuan Hongcheng Industrial Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Mianyang Science & Technology City Big Data Technology Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Hongcheng Construction Engineering Co., ltd | Control by same controlling shareholder and ultimate controller |
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
| Other related party | Relationship with the company |
| Sichuan Changhong Jiechuang Lithium Technology Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Qiruik Technology Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Hongmofang Network Technology Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Changhong Intelligent Technology Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Baiku Technology Co., Ltd | Associated enterprise of other enterprise that have the same controlling shareholder |
| Sichuan Hongyu Metal Manufacturing Co., Ltd. | Associated enterprise of other enterprise that have the same controlling shareholder |
| Sichuan Hongran Green Energy Co., Ltd. | Associated enterprise of controlling shareholder |
| Sichuan Changxin Refrigeration Parts Co., Ltd. | Associated enterprise of controlling shareholder |
| Mianyang Highly Electric Co., Ltd. | Associated enterprise of controlling shareholder |
(ii) Related transactions
1. Purchasing commodity
| Related party | Content | Current Period | Last Period |
| (in 10 thousand Yuan) | (in 10 thousand Yuan) | ||
| Sichuan Changhong Moulding Tech. Co., Ltd. | Purchasing commodity | 42,116.85 | 47,151.73 |
| Sichuan Changxin Refrigeration Parts Co., Ltd. | Purchasing commodity | 31,020.99 | 29,722.49 |
| Sichuan Changhong Jijia Fine Co., Ltd. | Purchasing commodity | 24,772.90 | 24,414.33 |
| Sichuan Changhong Electric Co., Ltd. | Purchasing commodity | 20,658.40 | 31,287.06 |
| Changhong Huayi Compressor Co., Ltd. | Purchasing commodity | 19,297.58 | 25,353.49 |
| Sichuan Changhong Package Printing Co., Ltd. | Purchasing commodity | 7,365.41 | 6,913.07 |
| Changhong Ruba Electric Company (Private) Ltd. | Purchasing commodity | 5,950.36 | 4,715.18 |
| Sichuan Aichuang Science & Technology Co., Ltd. | Purchasing commodity | 5,142.93 | 5,848.84 |
| Mianyang Highly Electric Co., Ltd. | Purchasing commodity | 4,722.10 | 18,284.13 |
| Sichuan Changhong Electronic Products Co., Ltd. | Purchasing commodity | 1,608.43 | 1,797.64 |
| Sichuan Changhong Precision Electronics Tech. Co., Ltd. | Purchasing commodity | 1,157.30 | 1,291.84 |
| Sichuan Changhong Device Technology Co., Ltd. | Purchasing commodity | 506.18 | |
| Sichuan Ailink Technology Co., Ltd. | Purchasing commodity | 460.43 | 1,934.07 |
| Hefei Changhong Industrial Co., Ltd. | Purchasing commodity | 279.42 | 293.88 |
| Guangdong Changhong Electronics Co., Ltd. | Purchasing commodity | 230.87 | 254.71 |
| Changhong International Holdings (Hong Kong) Co., Ltd. | Purchasing commodity | 202.84 | 672.2 |
| Sichuan Zhiyijia Network Technology Co., Ltd. | Purchasing commodity | 178.81 | 625.8 |
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
| Related party | Content | Current Period | Last Period |
| (in 10 thousand Yuan) | (in 10 thousand Yuan) | ||
| Sichuan Changhong New Energy Technology Co., Ltd. | Purchasing commodity | 1.91 | 0.96 |
| Sichuan Aoku Technology Co., Ltd. | Purchasing commodity | 1.82 | |
| Sichuan Changhong International Hotel Co., Ltd. | Purchasing commodity | 1.17 | |
| Zhongshan Guanghong Moulding Tech. Co., Ltd. | Purchasing commodity | 77.26 | |
| Hunan Grand-Pro Intelligent Tech. Company | Purchasing commodity | 75.66 | |
| 081 Electronic Group Co., Ltd. | Purchasing commodity | 4.95 | |
| Sichuan Changhong Intelligent Manufacturing Technology Co., Ltd. | Purchasing commodity | 1.77 | |
| Chengdu Guigu Environmental Tech. Co., Ltd | Purchasing commodity | 0.18 | |
| Total | 165,676.70 | 200,721.24 |
2. Accept the services
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
| Related party | Content | Current Period | Last Period |
| Sichuan Changhong Minsheng Logistics Co., Ltd. | Accept the services | 305,201,100.86 | 224,557,352.50 |
| Sichuan Service Exp. Appliance Service Chain Co., Ltd. | Accept the services | 109,136,334.24 | 93,499,148.00 |
| Sichuan Changhong Moulding Tech. Co., Ltd. | Accept the services | 11,317,706.85 | 66,728.31 |
| Sichuan Changxin Refrigeration Parts Co., Ltd. | Accept the services | 7,029,331.97 | |
| Sichuan Changhong Jijia Fine Co., Ltd. | Accept the services | 6,655,258.49 | |
| Sichuan Qiruik Technology Co., Ltd. | Accept the services | 5,330,162.67 | |
| Sichuan Jiahong Industrial Co., Ltd. | Accept the services | 3,427,635.77 | 2,219,124.89 |
| Sichuan Hongxin Software Co., Ltd. | Accept the services | 2,962,845.28 | 627,830.20 |
| Sichuan Changhong Electric Co., Ltd. | Accept the services | 1,638,694.39 | 1,848,713.48 |
| Sichuan Changhong Electronics Holding Group Co., Ltd. | Accept the services | 385,868.01 | 410,018.80 |
| Guangdong Changhong Electronics Co., Ltd. | Accept the services | 188,394.36 | 381,270.76 |
| Chengdu Guigu Environmental Tech. Co., Ltd | Accept the services | 122,389.38 | |
| Sichuan Zhiyijia Network Technology Co., Ltd. | Accept the services | 103,710.82 | 36,917.82 |
| Sichuan Changhong Intelligent Manufacturing Technology Co., Ltd. | Accept the services | 73,130.53 | 637,456.72 |
| Sichuan Changhong Property Service Co., Ltd. | Accept the services | 54,068.60 | 1,256,815.72 |
| Sichuan Changhong International Hotel Co., Ltd. | Accept the services | 36,610.36 | 14,824.98 |
| Changhong International Holdings (Hong Kong) Co., Ltd. | Accept the services | 2,433,372.32 | |
| Sichuan Hongwei Technology Co., Ltd. | Accept the services | 1,630,024.98 | |
| Sichuan Changhong International Travel Service Co., Ltd. | Accept the services | 231,756.12 | |
| Sichuan Changhong Electronic Products Co., Ltd. | Accept the services | 124,574.71 | |
| Sichuan Aichuang Science & Technology Co., Ltd. | Accept the services | 13,211.15 | |
| Total | 453,663,242.58 | 329,989,141.46 |
3. Purchase fuel and power
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
| Related party | Content | Current Period | Last Period |
| Sichuan Changhong Electric Co., Ltd. | Accept fuel power | 13,321,804.51 | 10,484,815.16 |
| Hefei Changhong Industrial Co., Ltd. | Accept fuel power | 580,338.87 | |
| Sichuan Hongran Green Energy Co., Ltd. | Accept fuel power | 537,960.95 | 572,392.86 |
| Guangdong Changhong Electronics Co., Ltd. | Accept fuel power | 285,882.21 | 520,124.75 |
| Hefei Changhong New Energy Technology Co., Ltd. | Accept fuel power | 163,503.46 | 172,184.57 |
| Changhong Huayi Compressor Co., Ltd. | Accept fuel power | 106,975.22 | 202,230.10 |
| Sichuan Changhong Property Service Co., Ltd. | Accept fuel power | 13,468.50 | 12,564.80 |
| Total | 15,009,933.72 | 11,964,312.24 |
4. Sales of goods
| Related party | Content | Current Period | Last Period |
| (in 10 thousand Yuan) | (in 10 thousand Yuan) | ||
| Sichuan Zhiyijia Network Technology Co., Ltd. | Sales of goods | 343,787.59 | 328,665.84 |
| CHANGHONG(HK)TRADINGLIMITED | Sales of goods | 17,413.91 | 13,687.72 |
| Changhong International Holdings (Hong Kong) Co., Ltd. | Sales of goods | 8,390.66 | 10,567.62 |
| CHANGHONGELECTRIC(AUSTRALIA)PTY.LTD | Sales of goods | 7,001.05 | 5,310.94 |
| Orion.PDP.Co.,ltd | Sales of goods | 2,814.00 | 1,985.69 |
| Changhong Ruba Electric Company (Private) Ltd. | Sales of goods | 1,028.84 | 2,356.10 |
| CHANGHONG ELECTRIC MIDDLE EAST FZCO | Sales of goods | 446.27 | 143.65 |
| Changhong Europe Electric s.r.o | Sales of goods | 305.51 | 5,608.18 |
| Sichuan Service Exp. Appliance Service Chain Co., Ltd. | Sales of goods | 302.53 | 293.76 |
| Lejiayi Chain Management Co., Ltd. | Sales of goods | 104.10 | 18.04 |
| Sichuan Tianyou Guigu Technology Co., Ltd | Sales of goods | 69.49 | 50.64 |
| Sichuan Baiku Technology Co., Ltd | Sales of goods | 62.74 | |
| Sichuan Changhong Moulding Tech. Co., Ltd. | Sales of goods | 43.19 | 13,068.52 |
| Sichuan Huafeng Enterprise Group Co., Ltd. | Sales of goods | 35.31 | |
| Sichuan Changhong Electric Co., Ltd. | Sales of goods | 23.92 | 318.89 |
| Sichuan Aoku Technology Co., Ltd. | Sales of goods | 23.01 | |
| Chengdu Guigu Environmental Tech. Co., Ltd | Sales of goods | 14.17 | 41.36 |
| Sichuan Changhong Minsheng Logistics Co., Ltd. | Sales of goods | 13.97 | 9.73 |
| Guangyuan Changhong Electronic Technology Co., Ltd. | Sales of goods | 13.79 | 8.07 |
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
| Related party | Content | Current Period | Last Period |
| (in 10 thousand Yuan) | (in 10 thousand Yuan) | ||
| Sichuan Changhong Real Estate Co., Ltd. | Sales of goods | 9.72 | 1.96 |
| Changhong Huayi Compressor Co., Ltd. | Sales of goods | 7.26 | |
| Hong Yuan Ground Energy Heat Tech. Co., Ltd | Sales of goods | 5.10 | 202.96 |
| Sichuan Aichuang Science & Technology Co., Ltd. | Sales of goods | 2.19 | 16.47 |
| Guangdong Changhong Electronics Co., Ltd. | Sales of goods | 1.99 | 10.62 |
| Sichuan Changhong Device Technology Co., Ltd. | Sales of goods | 0.11 | 0.08 |
| Hunan Grand-Pro Intelligent Tech. Company | Sales of goods | 0.05 | |
| Sichuan Changxin Refrigeration Parts Co., Ltd. | Sales of goods | 8,177.09 | |
| Sichuan Changhong Jijia Fine Co., Ltd. | Sales of goods | 3,677.37 | |
| PT.CHANGHONGELECTRICINDONESIA | Sales of goods | 27.8 | |
| Mianyang Lejiayi Commercial Chain Co., Ltd. | Sales of goods | 9.25 | |
| Hefei Changhong Industrial Co., Ltd. | Sales of goods | 7.89 | |
| 081 Electronic Group Co., Ltd. | Sales of goods | 0.08 | |
| Total | 381,920.47 | 394,266.32 |
5. Provide the services
| Related party | Content | Current Period | Last Period |
| Sichuan Service Exp. Appliance Service Chain Co., Ltd. | Provide the services | 1,172,476.55 | |
| Sichuan Huafeng Enterprise Group Co., Ltd. | Provide the services | 366,055.05 | 13,205.66 |
| Changhong Huayi Compressor Co., Ltd. | Provide the services | 355,407.86 | |
| Sichuan Changxin Refrigeration Parts Co., Ltd. | Provide the services | 229,524.66 | |
| Sichuan Changhong Minsheng Logistics Co., Ltd. | Provide the services | 174,099.76 | 189,986.96 |
| Sichuan Aoku Technology Co., Ltd. | Provide the services | 156,191.31 | |
| Sichuan Changhong Moulding Tech. Co., Ltd. | Provide the services | 133,161.41 | 87,808.26 |
| Yuanxin Financial Lease Co., Ltd. | Provide the services | 95,673.53 | |
| Sichuan Changhong Property Service Co., Ltd. | Provide the services | 85,797.50 | |
| Sichuan Changhong Device Technology Co., Ltd. | Provide the services | 80,064.14 | |
| Guang yuan Hongcheng Industrial Co., Ltd. | Provide the services | 45,871.56 | |
| Sichuan Changhong Jijia Fine Co., Ltd. | Provide the services | 37,577.54 | 94,798.00 |
| Sichuan Changhong Jiechuang Lithium Technology Co., Ltd. | Provide the services | 25,619.68 |
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
| Related party | Content | Current Period | Last Period |
| Sichuan Changhong International Hotel Co., Ltd. | Provide the services | 16,528.32 | |
| Sichuan Zhiyijia Network Technology Co., Ltd. | Provide the services | 8,355.62 | 12,600.00 |
| Sichuan Qiruik Technology Co., Ltd. | Provide the services | 1,332.00 | |
| Hefei Changhong Industrial Co., Ltd. | Provide the services | 220.00 | |
| Hong Yuan Ground Energy Heat Tech. Co., Ltd | Provide the services | 216,981.14 | |
| Guangdong Changhong Electronics Co., Ltd. | Provide the services | 116,398.34 | |
| 081 Electronic Group Co., Ltd. | Provide the services | 47,230.97 | |
| Sichuan Changhong Electronic Products Co., Ltd. | Provide the services | 11,021.81 | |
| Sichuan Changhong Gerun Environmental Protection Tech. Co., Ltd. | Provide the services | 9,433.96 | |
| Chengdu Guigu Environmental Tech. Co., Ltd | Provide the services | 8,874.24 | |
| Sichuan Changhong Precision Electronics Tech. Co., Ltd. | Provide the services | 6,434.91 | |
| Sichuan Hongwei Technology Co., Ltd. | Provide the services | 1,440.00 | |
| Sichuan Changhong Electronics Holding Group Co., Ltd. | Provide the services | -10,800.00 | |
| Sichuan Changhong Network Technology Co., Ltd. | Provide the services | -34,142.50 | |
| Sichuan Changhong Electric Co., Ltd. | Provide the services | -326,514.20 | -90,632.94 |
| Sichuan Aichuang Science & Technology Co., Ltd. | Provide the services | -789,703.69 | 254,071.82 |
| Total | 1,867,738.60 | 934,710.63 |
Businesses between the Company and its connected persons are generally conducted under marketoperation rules as if they were the same as other business counterparties. For price of sale or purchaseand provision of other labor service between the Company and its related parties, the state pricing isapplicable if the pricing do exists; in case of absence of such state pricing, price is determined undermarket price; in case of absence of such market price, price is determined by both parties at actual costplus reasonable expenses; for some special services, the price of which cannot be determined under therule of cost plus expense, the price shall be determined by both parties by negotiation.
6. Provide fuel power
| Related party | Content | Current Period | Last Period |
| Sichuan Changhong Moulding Tech. Co., Ltd. | Provide fuel power | 3,220,793.17 | 3,510,461.21 |
| Sichuan Changhong Device Technology Co., Ltd. | Provide fuel power | 152,675.30 | 310,921.71 |
| Sichuan Changhong Jijia Fine Co., Ltd. | Provide fuel power | 78,906.25 | 76,952.28 |
| Sichuan Zhiyijia Network Technology Co., Ltd. | Provide fuel power | 35,249.60 | 25,002.79 |
| Changhong International Holdings | Provide fuel | 29,532.75 | 23,176.99 |
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
| Related party | Content | Current Period | Last Period |
| (Hong Kong) Co., Ltd. | power | ||
| Sichuan Changhong Minsheng Logistics Co., Ltd. | Provide fuel power | 21,889.33 | 28,024.31 |
| Sichuan Changhong Precision Electronics Tech. Co., Ltd. | Provide fuel power | 7,176.72 | 5,186.20 |
| Guangdong Changhong Electronics Co., Ltd. | Provide fuel power | 2,753.70 | 5,371.01 |
| Total | 3,548,976.82 | 3,985,096.50 |
7. Related rental
(1) Rent out
| Lessor | Lessee | Type of assets | Leasing income in Current Period | Leasing income in Last Period |
| Changhong Meiling | Sichuan Changhong Moulding Tech. Co., Ltd. | Apartments, warehouses, factories | 1,350,299.40 | 389,702.27 |
| Changhong Meiling | Sichuan Changhong Jijia Fine Co., Ltd. | warehouse, apartment, forklift, warehouse | 461,571.78 | 160,742.34 |
| Changhong Meiling | Hefei Changhong Industrial Co., Ltd. | Apartments, warehouses, forklifts | 303,237.74 | 125,585.62 |
| Changhong Meiling | Sichuan Service Exp. Appliance Service Chain Co., Ltd. | Apartments, Offices, Forklifts | 117,660.00 | 81,600.00 |
| Changhong Meiling | Sichuan Changhong Minsheng Logistics Co., Ltd. | apartment, office | 110,877.98 | 107,800.32 |
| Changhong Meiling | Sichuan Zhiyijia Network Technology Co., Ltd. | Apartment | 94,128.44 | 98,968.06 |
| Changhong Meiling | Sichuan Changhong Precision Electronics Tech. Co., Ltd. | Apartment | 47,700.00 | 21,600.00 |
| Changhong Meiling | Sichuan Aichuang Science & Technology Co., Ltd. | Warehouse | 18,759.84 | 18,759.84 |
| Changhong Meiling | Sichuan Aoku Technology Co., Ltd. | Warehouse | 1,618.86 | |
| Changhong Meiling | Sichuan Ailink Technology Co., Ltd. | Warehouse | 938.94 | 952.34 |
| Changhong Air-conditioner | Sichuan Changhong Moulding Tech. Co., Ltd. | plant, equipment | 2,542,277.65 | 3,634,895.46 |
| Changhong Air-conditioner | Sichuan Changhong Jijia Fine Co., Ltd. | plant, equipment | 1,766,750.99 | 2,458,174.33 |
| Changhong Air-conditioner | Sichuan Changhong Electric Co., Ltd. | plant, equipment | 1,511,579.46 | 481,457.77 |
| Changhong Air-conditioner | Sichuan Changxin Refrigeration Parts Co., Ltd. | Equipment | 126,666.66 | |
| Changhong Air-conditioner | Chengdu Guigu Environmental Tech. Co., Ltd | Workshop | 14,201.83 | 28,403.67 |
| Zhongshan Changhong | Sichuan Changhong Precision Electronics Tech. Co., Ltd. | 2# living area | 42,000.00 | 21,000.00 |
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
| Lessor | Lessee | Type of assets | Leasing income in Current Period | Leasing income in Last Period |
| Zhongshan Changhong | Sichuan Changhong Moulding Tech. Co., Ltd. | 2# living area | 32,400.00 | 22,364.52 |
| Zhongshan Changhong | Sichuan Changhong Minsheng Logistics Co., Ltd. | Parts of the office building rent-out | 22,148.58 | 22,148.58 |
| Zhongshan Changhong | Guangdong Changhong Electronics Co., Ltd. | 2# living area | 14,221.47 | 22,485.99 |
| Zhongshan Changhong | Sichuan Changhong Device Technology Co., Ltd. | 2# living area | 3,735.44 | |
| Jiangxi Meiling | Sichuan Changhong Moulding Tech. Co., Ltd. | Workshop | 411,144.18 | 411,144.18 |
| Jiangxi Meiling | Sichuan Changhong Minsheng Logistics Co., Ltd. | Warehouse Office | 9,142.86 | |
| Zhongke Meiling | Sichuan Changhong Minsheng Logistics Co., Ltd. | Workshop | 783,911.94 | |
| Ridian Technology | Sichuan Changhong Device Technology Co., Ltd. | Workshop | 1,087,270.81 | 1,087,270.76 |
| Ridian Technology | Sichuan Qiruik Technology Co., Ltd. | Workshop | 47,314.29 | |
| Ridian Technology | Sichuan Hongwei Technology Co., Ltd. | Workshop | 47,314.29 | |
| Total | 10,133,911.76 | 10,030,017.72 | ||
(2) Lessee of related parties
| Lessor | Lessee | Type of assets | Leasing income in Current Period | Leasing income in Last Period |
| Hefei Changhong Industrial Co., Ltd. | Changhong Meiling | Workshop | 893,651.95 | |
| Sichuan Jiahong Industrial Co., Ltd. | Changhong Air-conditioner | Staff dormitory | 184,147.52 | |
| Sichuan Changhong Electric Co., Ltd. | Changhong Air-conditioner | VISA Laboratories | 170,589.02 | |
| Sichuan Changhong Electronics Holding Group Co., Ltd. | Changhong Air-conditioner | Staff dormitory, store rental | 62,774.40 | 101,443.84 |
| Guangdong Changhong Electronics Co., Ltd. | Ground energy heat pump | Staff dormitory | 38,582.61 | 50,139.23 |
| Guangdong Changhong Electronics Co., Ltd. | Zhongshan Changhong | Workshop | 677,103.12 | 677,103.14 |
| Sichuan Changhong Electric Co., Ltd. | Mianyang Meiling | Workshop | 1,641,651.96 | 1,630,727.51 |
| Sichuan Jiahong Industrial Co., Ltd. | Mianyang Meiling | Staff dormitory | 9,723.82 | |
| Sichuan Changhong Electronics Holding Group Co., Ltd. | Mianyang Meiling | Staff dormitory | 4,363.60 | |
| Changhong Huayi Compressor Co., Ltd. | Jiangxi Meiling | Staff dormitory | 44,310.17 | |
| Guangdong Changhong Electronics Co., Ltd. | Ridian Technology | Staff dormitory | 65,766.19 | 61,733.50 |
| Chengdu Changhong Electronic Technology Co., Ltd. | Hongmei Intelligent | Office | 362,977.21 | |
| Total | 4,151,277.97 | 2,525,510.82 |
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
8. Related guarantee
| Secured party | Sponsored party | Maximum guarantee amount | Start | Date due | Completed (Y/N) |
| (in 10 thousand Yuan) | |||||
| Changhong Meiling | Meiling Group | 5,000.00 | 2021-03-05 | 2022-03-05 | Y |
| Changhong Meiling | Meiling Group | 5,000.00 | 2022-04-18 | 2023-04-18 | N |
| Changhong Meiling | Changhong air-conditioner | 5,000.00 | 2021-09-24 | 2022-09-24 | N |
| Changhong Meiling | Changhong air-conditioner | 15,000.00 | 2021-12-07 | 2022-12-06 | N |
| Changhong Meiling | Changhong air-conditioner | 8,000.00 | 2022-03-18 | 2023-03-17 | N |
| Changhong Meiling | Changhong air-conditioner | 30,000.00 | 2022-04-18 | 2023-04-18 | N |
| Changhong Meiling | Zhongshan Changhong | 20,000.00 | 2021-04-08 | 2022-03-18 | Y |
| Changhong Meiling | Zhongshan Changhong | 18,000.00 | 2021-03-29 | 2022-03-29 | Y |
| Changhong Meiling | Zhongshan Changhong | 13,000.00 | 2021-03-03 | 2022-03-03 | Y |
| Changhong Meiling | Zhongshan Changhong | 10,000.00 | 2021-05-25 | 2022-05-25 | Y |
| Changhong Meiling | Zhongshan Changhong | 9,000.00 | 2021-03-15 | 2022-03-15 | Y |
| Changhong Meiling | Zhongshan Changhong | 20,000.00 | 2021-03-30 | 2022-03-30 | Y |
| Changhong Meiling | Zhongshan Changhong | 5,000.00 | 2021-07-22 | 2022-07-22 | N |
| Changhong Meiling | Zhongshan Changhong | 5,000.00 | 2021-08-24 | 2022-08-23 | N |
| Changhong Meiling | Zhongshan Changhong | 15,000.00 | 2021-08-09 | 2022-08-08 | N |
| Changhong Meiling | Zhongshan Changhong | 2,000.00 | 2022-02-15 | 2023-02-14 | N |
| Changhong Meiling | Zhongshan Changhong | 18,000.00 | 2022-04-22 | 2023-04-22 | N |
| Changhong Meiling | Zhongshan Changhong | 6,000.00 | 2022-03-15 | 2023-03-15 | N |
| Changhong Meiling | Zhongshan Changhong | 10,000.00 | 2022-04-22 | 2023-04-22 | N |
| Changhong Meiling | Zhongshan Changhong | 7,000.00 | 2022-03-28 | 2023-03-29 | N |
| Changhong Meiling | Zhongshan Changhong | 13,000.00 | 2022-06-16 | 2023-06-16 | N |
| Changhong Meiling | Meiling Life Appliances | 2,000.00 | 2021-07-26 | 2022-07-26 | Y |
| Changhong Meiling | Meiling Life Appliances | 5,000.00 | 2021-07-29 | 2022-07-28 | N |
| Changhong Meiling | Meiling Life Appliances | 5,000.00 | 2021-08-18 | 2022-08-08 | N |
| Changhong Meiling | Meiling Life Appliances | 2,000.00 | 2021-10-13 | 2022-10-12 | N |
| Changhong Meiling | Meiling Life Appliances | 4,000.00 | 2021-12-09 | 2022-11-02 | N |
| Changhong Meiling | Meiling Life Appliances | 3,000.00 | 2022-01-26 | 2023-01-26 | N |
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
| Secured party | Sponsored party | Maximum guarantee amount | Start | Date due | Completed (Y/N) |
| (in 10 thousand Yuan) | |||||
| Changhong Meiling | Meiling Life Appliances | 5,000.00 | 2022-03-21 | 2022-08-21 | N |
| Changhong Meiling | Meiling Life Appliances | 5,000.00 | 2022-03-16 | 2023-03-16 | N |
| Changhong Meiling | Ridian Technology | 3,000.00 | 2021-08-09 | 2022-08-08 | N |
| Changhong Meiling | Ridian Technology | 4,000.00 | 2021-09-16 | 2022-09-15 | N |
| Changhong Meiling | Ridian Technology | 3,000.00 | 2022-03-25 | 2023-03-25 | N |
| Changhong Meiling | Ridian Technology | 4,000.00 | 2021-03-31 | 2022-03-31 | Y |
| Changhong Meiling | Zhongke Meiling | 5,000.00 | 2021-05-24 | 2022-05-24 | N |
| Changhong Meiling | Zhongke Meiling | 6,000.00 | 2021-09-22 | 2022-09-22 | N |
| Zhongke Meiling | Anhui Tuoxing | 500.00 | 2022-06-27 | 2023-06-27 | N |
| Zhongke Meiling | Anhui Tuoxing | 500.00 | 2021-04-01 | 2022-04-01 | Y |
| Changhong Meiling | Jiangxi Meiling | 10,000.00 | 2021-07-08 | 2022-07-08 | N |
| Counter guarantee: | |||||
| Meiling Group | Changhong Meiling | 5,000.00 | 2021-03-05 | 2022-03-05 | Y |
| Meiling Group | Changhong Meiling | 5,000.00 | 2022-04-18 | 2023-04-18 | N |
| Changhong air-conditioner | Changhong Meiling | 5,000.00 | 2021-09-24 | 2022-09-24 | N |
| Changhong air-conditioner | Changhong Meiling | 15,000.00 | 2021-12-07 | 2022-12-06 | N |
| Changhong air-conditioner | Changhong Meiling | 8,000.00 | 2022-03-18 | 2023-03-17 | N |
| Changhong air-conditioner | Changhong Meiling | 30,000.00 | 2022-04-18 | 2023-04-18 | N |
| Zhongshan Changhong | Changhong Meiling | 20,000.00 | 2021-04-08 | 2022-03-18 | Y |
| Zhongshan Changhong | Changhong Meiling | 18,000.00 | 2021-03-29 | 2022-03-29 | Y |
| Zhongshan Changhong | Changhong Meiling | 13,000.00 | 2021-03-03 | 2022-03-03 | Y |
| Zhongshan Changhong | Changhong Meiling | 10,000.00 | 2021-05-25 | 2022-05-25 | Y |
| Zhongshan Changhong | Changhong Meiling | 9,000.00 | 2021-03-15 | 2022-03-15 | Y |
| Zhongshan Changhong | Changhong Meiling | 20,000.00 | 2021-03-30 | 2022-03-30 | Y |
| Zhongshan Changhong | Changhong Meiling | 5,000.00 | 2021-07-22 | 2022-07-22 | N |
| Zhongshan Changhong | Changhong Meiling | 5,000.00 | 2021-08-24 | 2022-08-23 | N |
| Zhongshan Changhong | Changhong Meiling | 15,000.00 | 2021-08-09 | 2022-08-08 | N |
| Zhongshan Changhong | Changhong Meiling | 2,000.00 | 2022-02-15 | 2023-02-14 | N |
| Zhongshan Changhong | Changhong Meiling | 18,000.00 | 2022-04-22 | 2023-04-22 | N |
| Zhongshan Changhong | Changhong Meiling | 6,000.00 | 2022-03-15 | 2023-03-15 | N |
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
| Secured party | Sponsored party | Maximum guarantee amount | Start | Date due | Completed (Y/N) |
| (in 10 thousand Yuan) | |||||
| Zhongshan Changhong | Changhong Meiling | 10,000.00 | 2022-04-22 | 2023-04-22 | N |
| Zhongshan Changhong | Changhong Meiling | 7,000.00 | 2022-03-28 | 2023-03-29 | N |
| Zhongshan Changhong | Changhong Meiling | 13,000.00 | 2022-06-16 | 2023-06-16 | N |
| Meiling Life Appliances | Changhong Meiling | 2,000.00 | 2021-07-26 | 2022-07-26 | Y |
| Meiling Life Appliances | Changhong Meiling | 5,000.00 | 2021-07-29 | 2022-07-28 | N |
| Meiling Life Appliances | Changhong Meiling | 5,000.00 | 2021-08-18 | 2022-08-08 | N |
| Meiling Life Appliances | Changhong Meiling | 2,000.00 | 2021-10-13 | 2022-10-12 | N |
| Meiling Life Appliances | Changhong Meiling | 4,000.00 | 2021-12-09 | 2022-11-02 | N |
| Meiling Life Appliances | Changhong Meiling | 3,000.00 | 2022-01-26 | 2023-01-26 | N |
| Meiling Life Appliances | Changhong Meiling | 5,000.00 | 2022-03-21 | 2022-08-21 | N |
| Meiling Life Appliances | Changhong Meiling | 5,000.00 | 2022-03-16 | 2023-03-16 | N |
| Ridian Technology | Changhong Meiling | 3,000.00 | 2021-08-09 | 2022-08-08 | N |
| Ridian Technology | Changhong Meiling | 4,000.00 | 2021-09-16 | 2022-09-15 | N |
| Ridian Technology | Changhong Meiling | 3,000.00 | 2022-03-25 | 2023-03-25 | N |
| Ridian Technology | Changhong Meiling | 4,000.00 | 2021-03-31 | 2022-03-31 | Y |
| Zhongke Meiling | Changhong Meiling | 5,000.00 | 2021-05-24 | 2022-05-24 | N |
| Zhongke Meiling | Changhong Meiling | 6,000.00 | 2021-09-22 | 2022-09-22 | N |
| Anhui Tuoxing | Zhongke Meiling | 500.00 | 2022-06-27 | 2023-06-27 | N |
| Anhui Tuoxing | Zhongke Meiling | 500.00 | 2021-04-01 | 2022-04-01 | Y |
| Jiangxi Meiling | Changhong Meiling | 10,000.00 | 2021-07-08 | 2022-07-08 | N |
9. Assets transfer and debt reorganization of related parties
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
| Related party | Type | Current Period | Last Period |
| Sichuan Hongxin Software Co., Ltd. | Purchase and construction of fixed assets | 1,570,283.02 | |
| Sichuan Changhong Electric Co., Ltd. | Purchase and construction of fixed assets | 1,400,000.03 | 5,595.00 |
| Sichuan Changhong Intelligent Manufacturing Technology Co., Ltd. | Purchase/ Purchase and construction of fixed assets | 484,283.19 | 5,762,952.63 |
| Mianyang Science & Technology City Big Data Technology Co., Ltd. | Purchase and construction of fixed assets | 452,630.47 | |
| Sichuan Changhong Electronics Holding Group Co., Ltd. | Purchase and construction of fixed assets | 94,339.62 | |
| Sichuan Qiruik Technology Co., Ltd. | Purchasing fixed assets | 65,575.22 | |
| Sichuan Zhiyijia Network Technology Co., Ltd. | Purchasing fixed assets | 8,407.06 | |
| Guangdong Changhong Electronics Co., Ltd. | Purchasing fixed assets | 600.00 | |
| Sichuan Hongcheng Construction Engineering Co., ltd | Purchase and construction of fixed assets | 1,950,244.22 | |
| 081 Electronic Group Co., Ltd. | Purchase and construction of fixed assets | 1,058,420.18 | |
| Sichuan Changhong Moulding Tech. Co., Ltd. | Purchasing fixed assets | 521,211.50 | |
| Sichuan Huanyu Industrial Co., Ltd. | Purchase and construction of fixed assets | 366,972.48 | |
| Sichuan Hongxin Software Co., Ltd. | Purchase intangible assets | 141,509.43 | |
| Sichuan Aoku Technology Co., Ltd. | Sale of fixed assets | 121,030.34 | |
| Total | 4,197,148.95 | 9,806,905.44 |
10. Other
| Name of company | Content | Current Period (in 10 thousand Yuan) | Last Period (in 10 thousand Yuan) |
| Yuanxin Financial Lease Co., Ltd. | Financing business | 21,168.68 | 34,194.22 |
11. Related transaction with Changhong Finance Company
(1) Saving balance
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
| Name of company | Ending balance | Opening balance | Interest income from bank saving in the period |
| Changhong Meiling Co., Ltd. | 1,628,997,355.75 | 1,750,741,958.39 | 24,115,331.72 |
| Sichuan Changhong Air-conditioner Co., Ltd | 837,105,759.65 | 667,374,291.19 | 5,513,643.72 |
| Zhongshan Changhong Electric Co., Ltd | 501,466,098.24 | 472,478,264.48 | 6,323,885.94 |
| Hefei Changhong Meiling Life Appliances Co., Ltd. | 195,059,408.17 | 204,429,613.95 | 4,758,430.52 |
| Ground Energy Heat Pump Tech. (Zhongshan) Co., Ltd. | 52,985,499.78 | 117,428,653.82 | 766,128.76 |
| Zhongke Meiling Cryogenic Technology Co., Ltd | 40,000,000.00 | 89,236,818.21 | 1,289,402.20 |
| Changhong Meiling Ridian Technology Co., Ltd. | 35,195,135.40 | 78,870,573.40 | 1,331,610.01 |
| Hebei Hongmao Daily Appliance Technology Co., Ltd. | 4,814,127.85 | 4,185,481.97 | 37,800.02 |
| Hefei Meiling Group Holdings Limited | 173,553.73 | 227,396.51 | 7,525.58 |
| Anhui Tuoxing Technology Co., Ltd. | 38,804.27 | 58,438.14 | 1,862.82 |
| Mianyang Meiling Refrigeration Co., Ltd. | 26,107.80 | 26,052.45 | 58.39 |
| Ground Energy Heat Pump Tech. Co., Ltd. | 16,113.12 | 19,795.17 | 40.20 |
| Jiangxi Meiling Electric Appliance Co., Ltd. | 9,606.06 | 9,585.70 | 21.48 |
| Total | 3,295,887,569.82 | 3,385,086,923.38 | 44,145,741.36 |
(2) Discounted bills
| Name of company | Bank acceptance | Bank acceptance | Discounting fees |
| Discounted face amount | Discounted amount | Amount of expenses | |
| Sichuan Changhong Air-conditioner Co., Ltd | 576,664,759.78 | 570,578,821.86 | 6,085,937.92 |
| Changhong Meiling Co., Ltd. | 404,521,001.09 | 401,143,854.50 | 3,377,146.59 |
| Hefei Changhong Meiling Life Appliances Co., Ltd. | 65,483,566.64 | 64,927,310.55 | 556,256.09 |
| Total | 1,046,669,327.51 | 1,036,649,986.91 | 10,019,340.60 |
(3) Issuing bills
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
| Name of company | Bill issuing unit | Amount of bills | Type |
| Sichuan Changhong Air-conditioner Co., Ltd | Sichuan Changhong Group Finance Co., Ltd. | 795,794,750.07 | Bank acceptance bill |
| Zhongshan Changhong Electric Co., Ltd | Sichuan Changhong Group Finance Co., Ltd. | 311,775,802.43 | Bank acceptance bill |
| Changhong Meiling Co., Ltd. | Sichuan Changhong Group Finance Co., Ltd. | 292,495,135.58 | Bank acceptance bill |
| Hefei Changhong Meiling Life Appliances Co., Ltd. | Sichuan Changhong Group Finance Co., Ltd. | 65,790,640.18 | Bank acceptance bill |
| Hefei Meiling Group Holdings Limited | Sichuan Changhong Group Finance Co., Ltd. | 60,530,654.68 | Bank acceptance bill |
| Ground Energy Heat Pump Tech. (Zhongshan) Co., Ltd. | Sichuan Changhong Group Finance Co., Ltd. | 53,219,911.64 | Bank acceptance bill |
| Zhongke Meiling Cryogenic Technology Co., Ltd | Sichuan Changhong Group Finance Co., Ltd. | 42,507,477.55 | Bank acceptance bill |
| Hebei Hongmao Daily Appliance Technology Co., Ltd. | Sichuan Changhong Group Finance Co., Ltd. | 12,534,617.64 | Bank acceptance bill |
| Changhong Meiling Ridian Technology Co., Ltd. | Sichuan Changhong Group Finance Co., Ltd. | 6,404,093.71 | Bank acceptance bill |
| Anhui Tuoxing Technology Co., Ltd. | Sichuan Changhong Group Finance Co., Ltd. | 388,042.66 | Bank acceptance bill |
| Total | 1,641,441,126.14 | ||
(4) Borrowing: nil
(5) Accounts receivable factoring: nil
(iii) Come and go balance with related parties
1. Receivable items
| Item | Related party | Ending balance | Opening balance | ||
| Book balance | Bad debt provision | Book balance | Bad debt provision | ||
| Account receivable | Sichuan Zhiyijia Network Technology Co., Ltd. | 729,357,230.57 | 590,034,682.52 | ||
| Account receivable | CHANGHONG(HK)TRADINGLIMITED | 97,388,887.21 | 14,593,546.00 | ||
| Account receivable | Changhong International Holdings (Hong Kong) Co., Ltd. | 69,808,921.67 | 2,109,676.72 | 35,985,886.24 | 971,525.15 |
| Account receivable | CHANGHONGELECTRIC(AUSTRALIA)PTY.LTD. | 45,370,669.06 | 648,386.48 | 55,903,139.06 | |
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
| Item | Related party | Ending balance | Opening balance | ||
| Book balance | Bad debt provision | Book balance | Bad debt provision | ||
| Account receivable | ChanghongRubaElectricCompany(Private)Ltd. | 40,863,864.04 | 3,349,025.22 | 39,274,379.69 | 2,991,971.20 |
| Account receivable | Orion.PDP.Co.,ltd | 25,138,268.70 | 679,786.93 | 7,923,855.47 | |
| Account receivable | CHANGHONGELECTRICMIDDLEEASTFZCO | 3,225,485.97 | 120,716.04 | ||
| Account receivable | ChanghongEuropeElectrics.r.o | 1,705,451.95 | 3,382,179.18 | ||
| Account receivable | Hong Yuan Ground Energy Heat Tech. Co., Ltd | 1,245,494.53 | 181,186.74 | 1,251,751.92 | 185,439.69 |
| Account receivable | Lejiayi Chain Management Co., Ltd. | 1,191,775.40 | 1,695.82 | 141,775.39 | |
| Account receivable | Sichuan Huafeng Enterprise Group Co., Ltd. | 798,000.00 | |||
| Account receivable | Sichuan Changhong Electric Co., Ltd. | 507,258.99 | 12,435.92 | 2,512,637.87 | 569.25 |
| Account receivable | Sichuan Changhong Moulding Tech. Co., Ltd. | 387,286.97 | |||
| Account receivable | Sichuan Service Exp. Appliance Service Chain Co., Ltd. | 331,005.72 | 67,279.43 | ||
| Account receivable | Changhong Huayi Compressor Co., Ltd. | 165,810.00 | 642,605.16 | ||
| Account receivable | Sichuan Ansify Technology Co., Ltd. | 44,580.80 | 52,448.00 | ||
| Account receivable | Sichuan Changxin Refrigeration Parts Co., Ltd. | 26,666.66 | |||
| Account receivable | Sichuan Changhong Precision Electronics Tech. Co., Ltd. | 16,695.00 | |||
| Account receivable | Sichuan Changhong Minsheng Logistics Co., Ltd. | 1,900.00 | 6,619.80 | ||
| Account receivable | Sichuan Aichuang Science & Technology Co., Ltd. | 1,595,719.32 | |||
| Account receivable | Changhong Grand-Pro Technology Co., Ltd. | 705,000.00 | |||
| Account receivable | Sichuan Changhong International Hotel Co., Ltd. | 17,064.50 | |||
| Account receivable | Yuanxin Financial Lease Co., Ltd. | 7,852.07 | |||
| Account receivable | Guangdong Changhong Electronics Co., Ltd. | 5,239.75 | 248.56 | ||
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
| Item | Related party | Ending balance | Opening balance | ||
| Book balance | Bad debt provision | Book balance | Bad debt provision | ||
| Account receivable | Sichuan Hongmofang Network Technology Co., Ltd. | 4,380.00 | |||
| Account paid in advance | Sichuan Changhong Intelligent Manufacturing Technology Co., Ltd. | 1,362,684.87 | 925,280.67 | ||
| Account paid in advance | Sichuan Aichuang Science & Technology Co., Ltd. | 684,000.00 | 684,000.00 | ||
| Account paid in advance | Sichuan Ailink Technology Co., Ltd. | 396.02 | 396.02 | ||
| Account paid in advance | Sichuan Zhiyijia Network Technology Co., Ltd. | 67,678.94 | |||
| Account paid in advance | Hefei Changhong Industrial Co., Ltd. | 38,029.06 | |||
| Other receivable | Changhong Grand-Pro Technology Co., Ltd. | 267,000.00 | 267,000.00 | ||
| Other receivable | Sichuan Service Exp. Appliance Service Chain Co., Ltd. | 264,887.71 | 200,000.00 | ||
| Other receivable | Sichuan Changhong Jiechuang Lithium Technology Co., Ltd. | 129,000.00 | 129,000.00 | ||
| Other receivable | Sichuan Zhiyijia Network Technology Co., Ltd. | 100,000.00 | |||
| Other receivable | Sichuan Changhong Electric Co., Ltd. | 60,000.00 | 59,857.21 | ||
| Other receivable | Guangdong Changhong Electronics Co., Ltd. | 25,899.43 | 25,899.43 | ||
| Other receivable | Sichuan Changhong Power Source Co., Ltd. | 19,200.00 | 19,200.00 | ||
| Other receivable | Sichuan Changhong Jijia Fine Co., Ltd. | 6,596.51 | 17,232.50 | ||
| Total | 1,020,494,917.78 | 6,982,193.83 | 756,662,331.24 | 4,149,753.85 | |
2. Payable items
| Item | Related party | Ending balance | Opening balance |
| Account payable | Sichuan Changhong Moulding Tech. Co., Ltd. | 315,222,887.54 | 27,523,349.71 |
| Account payable | Sichuan Changhong Jijia Fine Co., Ltd. | 157,346,752.61 | 6,608,580.22 |
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
| Item | Related party | Ending balance | Opening balance |
| Account payable | Changhong Huayi Compressor Co., Ltd. | 80,555,188.87 | 3,518,643.94 |
| Account payable | Sichuan Changxin Refrigeration Parts Co., Ltd. | 61,160,351.34 | 7,599,199.65 |
| Account payable | Sichuan Changhong Electric Co., Ltd. | 34,494,337.95 | 115,854.26 |
| Account payable | Changhong Ruba Electric Company (Private) Ltd. | 32,606,629.00 | |
| Account payable | Sichuan Aichuang Science & Technology Co., Ltd. | 32,459,525.53 | 7,290,455.51 |
| Account payable | Sichuan Changhong Package Printing Co., Ltd. | 18,821,866.13 | 5,553,060.13 |
| Account payable | Changhong International Holdings (Hong Kong) Co., Ltd. | 13,487,100.46 | 12,718,331.49 |
| Account payable | Sichuan Changhong Precision Electronics Tech. Co., Ltd. | 11,027,551.80 | 2,450,482.58 |
| Account payable | Sichuan Changhong Electronic Products Co., Ltd. | 10,175,643.97 | 372,065.37 |
| Account payable | Mianyang Highly Electric Co., Ltd. | 8,187,654.32 | 8,324,553.75 |
| Account payable | Sichuan Changhong Minsheng Logistics Co., Ltd. | 4,611,297.98 | 760,136.08 |
| Account payable | Sichuan Changhong Device Technology Co., Ltd. | 4,501,824.52 | 0.18 |
| Account payable | Sichuan Ailink Technology Co., Ltd. | 3,465,770.09 | 3,014,723.46 |
| Account payable | Hefei Changhong Industrial Co., Ltd. | 2,202,573.26 | |
| Account payable | Sichuan Changhong Intelligent Manufacturing Technology Co., Ltd. | 1,973,312.17 | 1,911,174.67 |
| Account payable | Guangdong Changhong Electronics Co., Ltd. | 1,179,915.52 | 1,296,473.51 |
| Account payable | Sichuan Jiahong Industrial Co., Ltd. | 558,118.29 | |
| Account payable | Sichuan Service Exp. Appliance Service Chain Co., Ltd. | 514,481.32 | 449,551.04 |
| Account payable | Sichuan Hongxin Software Co., Ltd. | 403,701.89 | 28,301.89 |
| Account payable | Chengdu Changhong Electronic Technology Co., Ltd. | 326,258.23 | 326,258.23 |
| Account payable | Sichuan Aoku Technology Co., Ltd. | 295,530.47 | |
| Account payable | Sichuan Changhong Electronics Holding Group Co., Ltd. | 108,400.00 | |
| Account payable | Sichuan Changhong International Hotel Co., Ltd. | 99,723.00 | |
| Account payable | 081 Electronic Group Co., Ltd. | 53,026.90 | 53,196.86 |
| Account payable | Sichuan Hongcheng Construction Engineering Co., ltd | 50,000.00 | 50,000.00 |
| Account payable | Sichuan Hongyu Metal Manufacturing Co., Ltd. | 14,662.40 | 14,662.40 |
| Account payable | Sichuan Changhong New Energy Technology Co., Ltd. | 13,560.00 | 8,000.40 |
| Account payable | Sichuan Changhong Power Source Co., Ltd. | 1,870.82 | 1,870.82 |
| Account payable | Hong Yuan Ground Energy Heat Tech. Co., Ltd | 0.01 | 0.01 |
| Account payable | Hunan Grand-Pro Intelligent Tech. Company | 391,610.62 | |
| Account payable | Sichuan Changhong International Travel Service Co., Ltd. | 90,789.00 | |
| Contract liability | Lejiayi Chain Management Co., Ltd. | 1,672,191.25 | 828,419.67 |
| Contract liability | Sichuan Changhong Intelligent Technology Co., Ltd. | 1,120,221.22 |
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
| Item | Related party | Ending balance | Opening balance |
| Contract liability | Sichuan Zhiyijia Network Technology Co., Ltd. | 769,911.50 | 34.38 |
| Contract liability | Sichuan Changhong Electric Co., Ltd. | 480,927.60 | 547,736.39 |
| Contract liability | Sichuan Aichuang Science & Technology Co., Ltd. | 130,624.62 | |
| Contract liability | Sichuan Changhong Electronics Holding Group Co., Ltd. | 70,867.26 | |
| Contract liability | 081 Electronic Group Co., Ltd. | 46,585.00 | 22.61 |
| Contract liability | Hong Yuan Ground Energy Heat Tech. Co., Ltd | 39,343.58 | 41,894.81 |
| Contract liability | Sichuan Service Exp. Appliance Service Chain Co., Ltd. | 11,270.90 | 303,764.99 |
| Contract liability | Chengdu Guigu Environmental Tech. Co., Ltd | 2,566.37 | 1,520.35 |
| Contract liability | Changhong International Holdings (Hong Kong) Co., Ltd. | 2,040.27 | |
| Contract liability | CHANGHONG (HK) TRADING LIMITED | 861.02 | 817.96 |
| Contract liability | Sichuan Changhong International Hotel Co., Ltd. | 0.88 | |
| Contract liability | Guangyuan Changhong Electronic Technology Co., Ltd. | 0.03 | |
| Contract liability | Sichuan Aoku Technology Co., Ltd. | 358,528.90 | |
| Contract liability | Sichuan Changhong Device Technology Co., Ltd. | 59,317.08 | |
| Contract liability | Guang yuan Hongcheng Industrial Co., Ltd. | 22,935.78 | |
| Contract liability | Sichuan Changhong Minsheng Logistics Co., Ltd. | 3,362.83 | |
| Contract liability | Sichuan Tianyou Guigu Technology Co., Ltd | 185.84 | |
| Lease liability | Hefei Changhong Industrial Co., Ltd. | 23,750,695.99 | 24,644,347.94 |
| Lease liability | Sichuan Changhong Electric Co., Ltd. | 10,529,779.32 | 11,332,933.78 |
| Lease liability | Chengdu Changhong Electronic Technology Co., Ltd. | 64,050.73 | 977,917.93 |
| Other payable | Sichuan Changhong Minsheng Logistics Co., Ltd. | 112,771,549.4 | 100,309,779.69 |
| Other payable | Sichuan Service Exp. Appliance Service Chain Co., Ltd. | 109,330,238.55 | 116,814.89 |
| Other payable | Yuanxin Financial Lease Co., Ltd. | 85,592,599.92 | 79,697,695.46 |
| Other payable | CHANGHONG (HK) TRADING LIMITED | 4,911,677.86 | 26,435.95 |
| Other payable | Sichuan Changhong Moulding Tech. Co., Ltd. | 2,595,781.48 | 2,194,205.68 |
| Other payable | Changhong Huayi Compressor Co., Ltd. | 1,698,900.00 | 1,598,900.00 |
| Other payable | Sichuan Changhong Intelligent Manufacturing Technology Co., Ltd. | 727,845.10 | 608,075.10 |
| Other payable | Sichuan Zhiyijia Network Technology Co., Ltd. | 586,201.06 | 784,247.43 |
| Other payable | Sichuan Changhong Jineng Sunshine Technology Co., Ltd. | 500,000.00 | 500,000.00 |
| Other payable | Sichuan Changhong Jijia Fine Co., Ltd. | 400,500.00 | 400,500.00 |
| Other payable | Sichuan Qiruik Technology Co., Ltd. | 376,614.00 | 175,244.04 |
| Other payable | Hunan Grand-Pro Intelligent Tech. Company | 200,000.00 | 250,000.00 |
| Other payable | Sichuan Aoku Technology Co., Ltd. | 144,874.60 | 96,455.34 |
| Other payable | Sichuan Aichuang Science & Technology Co., Ltd. | 100,000.00 |
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
| Item | Related party | Ending balance | Opening balance |
| Other payable | Mianyang Science & Technology City Big Data Technology Co., Ltd. | 60,045.70 | |
| Other payable | Sichuan Changxin Refrigeration Parts Co., Ltd. | 53,536.27 | 46,702.03 |
| Other payable | Sichuan Changhong Package Printing Co., Ltd. | 50,000.00 | 50,000.00 |
| Other payable | Sichuan Ailink Technology Co., Ltd. | 50,000.00 | 50,000.00 |
| Other payable | Sichuan Changhong Electronic Products Co., Ltd. | 50,000.00 | 50,000.00 |
| Other payable | Hefei Changhong Industrial Co., Ltd. | 50,000.00 | |
| Other payable | Sichuan Changhong Electric Co., Ltd. | 45,910.06 | 43,634.53 |
| Other payable | Changhong International Holdings (Hong Kong) Co., Ltd. | 43,059.21 | 52,728.63 |
| Other payable | Guangdong Changhong Electronics Co., Ltd. | 32,803.00 | 79,304.55 |
| Other payable | Sichuan Changhong Electronics Holding Group Co., Ltd. | 2,440.52 | 35,359.74 |
| Other payable | Sichuan Changhong Precision Electronics Tech. Co., Ltd. | 567.00 | 0.01 |
| Other payable | Sichuan Changhong Device Technology Co., Ltd. | 381.09 | |
| Other payable | Sichuan Jiahong Industrial Co., Ltd. | 18.00 | 18.00 |
| Other payable | Sichuan Hongwei Technology Co., Ltd. | 220,425.76 | |
| Other payable | Chengdu Guigu Environmental Tech. Co., Ltd | 25,132.00 | |
| Total | 1,154,986,996.75 | 317,006,725.85 | |
(iv) Commitments from related parties: NilXII. Share-based payment: NilXIII. Contingency
1. Pending action or possible liabilities formed from arbitration
In November 2021, Zhejiang Teruisi Pharmaceutical Co., Ltd. filed a lawsuit against Zhongke Meilingfor the "Contract for Cold Storage Design, Equipment Procurement and Installation Construction".Currently, a third-party engineering quality appraisal agency is conducting quality appraisal of theobjects under the contract, the boot-up and operation test has been initially completed, and ZhongkeMeiling intends to advocate maintenance of the cold storage project, and the maintenance cost isestimated to be 1,793,030.00 yuan.
2. Contingency from external guarantee: Nil
3. Other contingency: Nil
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
XIV. Commitments: NilXV. Events occurring after the balance sheet date
1. Important non-adjustment items: Nil
2. Profit distribution: Nil
3. Major sales return: Nil
4. Other than the above mentioned events, the Company have no other events occurred after balancesheet date.
XVI. Other significant matters
1. Correction of previous periods and influence: Nil
2. Debt restructuring: Nil
3. Assets replacement: Nil
4. Pension plan: Nil
5. Discontinuing operation: Nil
6. Branch information
In 10 thousand Yuan
| Item | Refrigerator, freezer Washing machine | Air-conditioner | Small appliances | Other | Sales in branch | Total |
| Operation income | 403,513.86 | 542,114.56 | 82,352.59 | 19,485.36 | 25,016.01 | 1,022,450.36 |
| Including: foreign trade income | 400,411.80 | 542,084.47 | 72,291.16 | 7,662.93 | 1,022,450.36 | |
| Income from transactions between divisions | 3,102.06 | 30.09 | 10,061.43 | 11,822.43 | 25,016.01 | |
| Operation expenses | 416,936.62 | 532,963.83 | 81,446.79 | 17,198.98 | 24,755.45 | 1,023,790.77 |
| Operation profit | -13,422.76 | 9,150.73 | 905.80 | 2,286.38 | 260.56 | -1,340.41 |
| Total assets | 1,088,459.78 | 618,945.84 | 76,536.33 | 22,235.90 | 171,719.07 | 1,634,458.78 |
| Total liability | 619,528.52 | 497,490.08 | 53,775.63 | 8,711.32 | 28,030.05 | 1,151,475.50 |
| Supplementary information | ||||||
| Depreciation and amortization expenses | 10,887.28 | 7,347.90 | 197.24 | 300.95 | -10.55 | 18,743.92 |
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
| Item | Refrigerator, freezer Washing machine | Air-conditioner | Small appliances | Other | Sales in branch | Total |
| Capital expenditure | 12,633.34 | 5,549.85 | 24.40 | 434.56 | 54.87 | 18,587.28 |
7. Other major transactions and events shows impact on investor’s decision-making: Nil
XVII. Notes to main items of financial statement of parent company
1. Account receivable
(1) Presented according to the bad debt accrual method
| Category | Ending balance | ||||
| Book balance | Bad debt provision | Book value | |||
| Amount | Ratio (%) | Amount | Ratio (%) | ||
| Account receivable that withdrawal bad debt provision by single item | 1,642,962,833.03 | 93.20 | 5,607,260.68 | 0.34 | 1,637,355,572.35 |
| Including: Related party payments | 1,640,802,695.33 | 93.08 | 4,639,780.88 | 0.28 | 1,636,162,914.45 |
| Account receivable with letter of credit | 1,192,657.90 | 0.07 | 1,192,657.90 | ||
| Account receivable with single minor amount but withdrawal single item bad debt provision | 967,479.80 | 0.05 | 967,479.80 | 100.00 | |
| Account receivable withdrawal bad debt provision by portfolio | 119,868,099.15 | 6.80 | 21,256,805.24 | 17.73 | 98,611,293.91 |
| Including: account receivable of engineering customers | 6,246,264.00 | 0.35 | 3,123,132.00 | 50.00 | 3,123,132.00 |
| Receivables other than engineering customers | 113,621,835.15 | 6.45 | 18,133,673.24 | 15.96 | 95,488,161.91 |
| Total | 1,762,830,932.18 | 100.00 | 26,864,065.92 | 1.52 | 1,735,966,866.26 |
(Continued)
| Category | Opening balance | ||||
| Book balance | Bad debt provision | Book value | |||
| Amount | Ratio (%) | Amount | Ratio (%) | ||
| Account receivable that withdrawal bad debt provision by single item | 1,416,366,794.95 | 88.42 | 2,554,877.42 | 0.18 | 1,413,811,917.53 |
| Including: Related party payments | 1,390,662,728.52 | 86.82 | 2,203,703.69 | 0.16 | 1,388,459,024.83 |
| Account receivable with letter of credit | 25,352,892.70 | 1.58 | 25,352,892.70 | ||
| Account receivable with single minor amount but withdrawal single item bad debt provision | 351,173.73 | 0.02 | 351,173.73 | 100.00 | |
| Account receivable withdrawal bad debt provision by portfolio | 185,510,434.61 | 11.58 | 16,670,455.89 | 8.99 | 168,839,978.72 |
| Including: account receivable of engineering customers | 6,246,264.00 | 0.39 | 3,123,132.00 | 50.00 | 3,123,132.00 |
| Receivables other than engineering customers | 179,264,170.61 | 11.19 | 13,547,323.89 | 7.56 | 165,716,846.72 |
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
| Category | Opening balance | ||||
| Book balance | Bad debt provision | Book value | |||
| Amount | Ratio (%) | Amount | Ratio (%) | ||
| Total | 1,601,877,229.56 | 100.00 | 19,225,333.31 | 1.20 | 1,582,651,896.25 |
1) Provision for bad debts of account receivable on an individual basis
Account receivable with single minor amount but withdrawal bad debt provision singly, refers to theminor single receivables, and withdrawal bad debt provision by combination shows no riskcharacteristic of the receivables, 3 clients involved.
2) Account receivable withdrawal bad debt provision by portfolio
A. Account receivable of engineering customers
| Account age | Ending balance | ||
| Book balance | Bad debt provision | Accrual ratio (%) | |
| Within 3 months (3 months included) | |||
| Over 3 months and within 6 months (6 months included) | |||
| Over 6 months and within one year (One year included) | |||
| Over one year - within 2 years (2 years included) | 20.00 | ||
| Over 2 years - within 3 years (3 years included) | 6,246,264.00 | 3,123,132.00 | 50.00 |
| Over 3 years | 100.00 | ||
| Total | 6,246,264.00 | 3,123,132.00 | |
(Continued)
| Account age | Opening balance | ||
| Book balance | Bad debt provision | Accrual ratio (%) | |
| Within 3 months (3 months included) | |||
| Over 3 months and within 6 months (6 months included) | |||
| Over 6 months and within one year (One year included) | |||
| Over one year - within 2 years (2 years included) | 20.00 | ||
| Over 2 years - within 3 years (3 years included) | 6,246,264.00 | 3,123,132.00 | 50.00 |
| Over 3 years | 100.00 | ||
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
| Account age | Opening balance | ||
| Book balance | Bad debt provision | Accrual ratio (%) | |
| Total | 6,246,264.00 | 3,123,132.00 | |
B. Receivables other than engineering customers
| Account age | Ending balance | ||
| Book balance | Bad debt provision | Accrual ratio (%) | |
| Within 3 months (3 months included) | 76,611,262.20 | 766,112.62 | 1.00 |
| Over 3 months and within 6 months (6 months included) | 1,706,357.54 | 170,635.75 | 10.00 |
| Over 6 months and within one year (One year included) | 13,661,184.13 | 2,732,236.83 | 20.00 |
| Over one year - within 2 years (2 years included) | 12,872,569.35 | 6,436,284.68 | 50.00 |
| Over 2 years - within 3 years (3 years included) | 3,710,292.85 | 2,968,234.28 | 80.00 |
| Over 3 years | 5,060,169.08 | 5,060,169.08 | 100.00 |
| Total | 113,621,835.15 | 18,133,673.24 | |
(Continued)
| Account age | Opening balance | ||
| Book balance | Bad debt provision | Accrual ratio (%) | |
| Within 3 months (3 months included) | 146,099,823.60 | 1,460,998.24 | 1.00 |
| Over 3 months and within 6 months (6 months included) | 10,604,804.35 | 1,060,480.44 | 10.00 |
| Over 6 months and within one year (One year included) | 9,051,609.96 | 1,810,321.99 | 20.00 |
| Over one year - within 2 years (2 years included) | 8,453,845.93 | 4,226,922.97 | 50.00 |
| Over 2 years - within 3 years (3 years included) | 327,432.61 | 261,946.09 | 80.00 |
| Over 3 years | 4,726,654.16 | 4,726,654.16 | 100.00 |
| Total | 179,264,170.61 | 13,547,323.89 | |
(2) By account age
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
| Account age | Ending balance | Opening balance |
| Within 3 months (3 months included) | 943,021,204.33 | 667,235,077.95 |
| Over 3 months and within 6 months (6 months included) | 168,807,422.08 | 867,911,914.43 |
| Over 6 months and within one year (One year included) | 596,918,384.12 | 35,781,521.18 |
| Over one year - within 2 years (2 years included) | 31,501,870.82 | 13,453,956.99 |
| Over 2 years - within 3 years (3 years included) | 9,956,556.85 | 6,594,527.78 |
| Over 3 years | 12,625,493.98 | 10,900,231.23 |
| Total | 1,762,830,932.18 | 1,601,877,229.56 |
(3) Bad debt reserves of the account receivable
| Category | Opening balance | Amount change in the period | Ending balance | ||
| Accrual | Collected or switch back | Resale or write-off | |||
| Bad debt provision | 19,225,333.31 | 7,638,732.61 | 26,864,065.92 | ||
| Total | 19,225,333.31 | 7,638,732.61 | 26,864,065.92 | ||
(4) Top 5 balance of account receivable aggregated by the debtor at end of the period amounted to
1,577,697,118.69 yuan, accounted for 89.50% of the receivables at balance of current period-end, the
bad debt provision amounted as 3,542,205.46 yuan.
(5) Receivables derecognized due to the transfer of financial assets: 206,504,068.29 yuan
(6) There are no receivables and the amount of assets and liabilities formed by continued involvement
2. Other account receivable
| Item | Ending balance | Opening balance |
| Other account receivable | 38,833,840.97 | 40,708,614.68 |
| Total | 38,833,840.97 | 40,708,614.68 |
(1) By nature
| Nature | Ending book balance | Opening book balance |
| Export tax refund and Other tax refundable | 8,001,439.54 | 26,634,190.54 |
| Cash deposit | 2,690,511.92 | 2,788,111.92 |
| Loans of employee’s pretty cash | 4,758,043.56 | 4,383,234.18 |
| Related party in consolidation statement | 4,391,769.95 | 4,859,662.12 |
| Related party not in consolidation statement | 200,000.00 | 200,000.00 |
| Insurance compensation | 18,970,000.00 | |
| Other | 62,400.00 | 1,893,415.92 |
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
| Nature | Ending book balance | Opening book balance |
| Total | 39,074,164.97 | 40,758,614.68 |
(2) Provision for bad debt of other receivable
| Bad debt reserves | First stage | Second stage | Third stage | Total |
| Expected credit loss in next 12 months | Expected credit loss for the whole duration (no credit impairment) | Expected credit loss for the whole duration (credit impairment has occurred) | ||
| Balance as at 1 Jan. 2022 | 50,000.00 | 50,000.00 | ||
| Book balance of other account receivable in Current Period as at 1 Jan. 2022 | — | — | — | — |
| --Transfer to the second stage | ||||
| --Transfer to the third stage | ||||
| --Reversal to the second stage | ||||
| --Reversal to the first stage | ||||
| Provision in Current Period | 190,324.00 | 190,324.00 | ||
| Reversal in Current Period | ||||
| Conversion in Current Period | ||||
| Write off in Current Period | ||||
| Other change | ||||
| Balance as at 30 Jun. 2022 | 190,324.00 | 50,000.00 | 240,324.00 |
(3) By account age
| Account age | Ending balance | Opening balance |
| Within 3 months (3 months included) | 31,026,643.98 | 34,703,730.05 |
| Over 3 months and within 6 months (6 months included) | 817,562.29 | 1,390,793.47 |
| Over 6 months and within one year (One year included) | 3,307,712.59 | 1,144,671.71 |
| over one year-within two years (2 years included) | 1,555,155.65 | 1,556,311.89 |
| Over 2 years - within 3 years (3 years included) | 822,700.00 | 899,400.00 |
| Over 3 years | 1,544,390.46 | 1,063,707.56 |
| Total | 39,074,164.97 | 40,758,614.68 |
(4) Top 5 balance of other account receivable aggregated by the debtor at end of the period
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
| Name of the unit | Nature | Ending balance | Account age | Proportion of the total period-end balance of other receivable (%) | Ending balance of bad debt reserve |
| Unit I | Insurance compensation | 18,970,000.00 | Within 3 months | 48.55 | |
| Unit II | Export rebates | 8,001,439.54 | Within 3 months | 20.48 | |
| Unit III | Related party payment | 4,574,459.69 | Within 1 year | 11.71 | |
| Unit IV | Related party payment | 3,151,115.75 | 1-2 years | 8.06 | |
| Unit V | Related party payment | 2,871,072.68 | Within 1 year | 7.35 | |
| Total | 37,568,087.66 | 96.15 |
(5) There are no receivables involving government subsidies
(6) There are no other receivables derecognized due to the transfer of financial assets.
(7) There are no other receivables and the amount of assets and liabilities formed by continuedinvolvement
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
3. Long-term equity investments
(1) Classification of long-term equity investments
| Item | Ending balance | Opening balance | ||||
| Book balance | Impairment loss | Book value | Book balance | Impairment loss | Book value | |
| Investment in subsidiaries: | ||||||
| Zhongke Meiling Cryogenic Technology Co., Ltd | 42,652,000.00 | 42,652,000.00 | 42,652,000.00 | 42,652,000.00 | ||
| Mianyang Meiling Refrigeration Co., Ltd. | 95,000,000.00 | 95,000,000.00 | 95,000,000.00 | 95,000,000.00 | ||
| Hefei Meiling Electric Appliances Marketing Co., Ltd | 54,900,000.00 | 54,900,000.00 | 54,900,000.00 | 54,900,000.00 | ||
| Zhongshan Changhong Electric Co., Ltd | 304,856,419.37 | 304,856,419.37 | 304,856,419.37 | 304,856,419.37 | ||
| Sichuan Changhong Air-conditioner Co., Ltd | 955,600,437.79 | 955,600,437.79 | 955,600,437.79 | 955,600,437.79 | ||
| Hefei Meiling Group Holdings Limited | 113,630,000.00 | 113,630,000.00 | 113,630,000.00 | 113,630,000.00 | ||
| Jiangxi Meiling Electric Appliance Co., Ltd. | 79,000,000.00 | 79,000,000.00 | 79,000,000.00 | 79,000,000.00 | ||
| Changhong Meiling Ridian Technology Co., Ltd. | 91,082,111.12 | 91,082,111.12 | 91,082,111.12 | 91,082,111.12 | ||
| Meiling CANDY Washing Machine Co., Ltd | 60,000,000.00 | 27,675,208.01 | 32,324,791.99 | 60,000,000.00 | 27,675,208.01 | 32,324,791.99 |
| Hefei Meiling Wulian Technology Co., Ltd | 6,000,000.00 | 6,000,000.00 | 6,000,000.00 | 6,000,000.00 | ||
| CH-Meiling.International (Philippines) Inc. | 6,889,100.00 | 6,889,100.00 | 6,889,100.00 | 6,889,100.00 | ||
| Hefei Changhong Meiling Life Appliances Co., Ltd. | 35,000,000.00 | 35,000,000.00 | 35,000,000.00 | 35,000,000.00 | ||
| Investment in associates: | ||||||
| Hefei Xingmei Assets Management Co., Ltd. | 19,452,270.21 | 19,452,270.21 | 19,835,366.84 | 19,835,366.84 | ||
| Sichuan Zhiyijia Network Technology Co., Ltd. | 46,610,307.25 | 46,610,307.25 | 45,787,014.55 | 45,787,014.55 | ||
| Total | 1,910,672,645.74 | 27,675,208.01 | 1,882,997,437.73 | 1,910,232,449.67 | 27,675,208.01 | 1,882,557,241.66 |
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
(2) Investment in subsidiaries
| Invested enterprise | Opening balance | Increased in Current Period | Decreased in Current Period | Ending balance | Provision for impairment losses in the Period | Ending balance of impairment |
| Zhongke Meiling Cryogenic Technology Co., Ltd | 42,652,000.00 | 42,652,000.00 | ||||
| Mianyang Meiling Refrigeration Co., Ltd. | 95,000,000.00 | 95,000,000.00 | ||||
| Hefei Meiling Electric Appliances Marketing Co., Ltd | 54,900,000.00 | 54,900,000.00 | ||||
| Zhongshan Changhong Electric Co., Ltd | 304,856,419.37 | 304,856,419.37 | ||||
| Sichuan Changhong Air-conditioner Co., Ltd | 955,600,437.79 | 955,600,437.79 | ||||
| Hefei Meiling Group Holdings Limited | 113,630,000.00 | 113,630,000.00 | ||||
| Jiangxi Meiling Electric Appliance Co., Ltd. | 79,000,000.00 | 79,000,000.00 | ||||
| Changhong Meiling Ridian Technology Co., Ltd. | 91,082,111.12 | 91,082,111.12 | ||||
| Hefei Changhong Meiling Life Appliances Co., Ltd. | 35,000,000.00 | 35,000,000.00 | ||||
| Meiling CANDY Washing Machine Co., Ltd | 60,000,000.00 | 60,000,000.00 | 27,675,208.01 | |||
| Hefei Meiling Wulian Technology Co., Ltd | 6,000,000.00 | 6,000,000.00 | ||||
| CH-Meiling.International (Philippines) Inc. | 6,889,100.00 | 6,889,100.00 | ||||
| Total | 1,844,610,068.28 | 1,844,610,068.28 | 27,675,208.01 |
(3) Investment in associates
| Invested enterprise | Opening balance | Changes in Current Period | Ending balance | Ending balance of impairment | |||||||
| Additional Investment | Negative Investment | Investment income recognized under equity | Adjustment for other comprehensive | Other equity change | Cash dividend or profit announced to issued | Provision for impairment loss | Other | ||||
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
| income | |||||||||||
| Hefei Xingmei Assets Management Co., Ltd. | 19,835,366.84 | 4,686,303.37 | 5,069,400.00 | 19,452,270.21 | |||||||
| Sichuan Zhiyijia Network Technology Co., Ltd. | 45,787,014.55 | 823,292.70 | 46,610,307.25 | ||||||||
| Total | 65,622,381.39 | 5,509,596.07 | 5,069,400.00 | 66,062,577.46 |
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
4. Operation income, operation cost
(1) Operation income and operation cost
| Item | Current Period | Last Period | ||
| Income | Cost | Income | Cost | |
| Main business | 3,030,603,503.85 | 2,834,190,544.57 | 3,102,350,117.09 | 2,860,557,418.34 |
| Other business | 245,902,657.62 | 226,413,800.95 | 873,401,787.20 | 841,056,783.21 |
| Total | 3,276,506,161.47 | 3,060,604,345.52 | 3,975,751,904.29 | 3,701,614,201.55 |
(2) Main business - Classified according to product
| Product | Current Period | Last Period | ||
| Operation income | Operation cost | Operation income | Operation cost | |
| Refrigerator, freezer | 2,609,364,481.40 | 2,442,998,402.01 | 2,809,476,859.57 | 2,589,201,634.89 |
| air conditioner | 4,106,663.74 | 3,945,682.66 | 5,383,616.16 | 5,234,264.84 |
| Washing machine | 302,517,846.03 | 283,311,449.87 | 232,248,515.69 | 216,526,918.33 |
| Small household appliances and kitchen and bathroom | 114,614,512.68 | 103,935,010.03 | 55,241,125.67 | 49,594,600.28 |
| Total | 3,030,603,503.85 | 2,834,190,544.57 | 3,102,350,117.09 | 2,860,557,418.34 |
(3) Main business - Classified according to region
| Region | Current Period | Last Period | ||
| Operation income | Operation cost | Operation income | Operation cost | |
| Domestic | 2,085,203,000.95 | 1,955,621,293.70 | 1,756,300,378.04 | 1,652,622,816.92 |
| Overseas | 945,400,502.90 | 878,569,250.87 | 1,346,049,739.05 | 1,207,934,601.42 |
| Total | 3,030,603,503.85 | 2,834,190,544.57 | 3,102,350,117.09 | 2,860,557,418.34 |
Top five clients in sales revenue amounted as 1,844,332,092.65 yuan, a 56.29% in total operationincome.
5. Investment income
| Item | Current Period | Last Period |
| Long-term equity investment income by equity method | 5,509,596.07 | -15,045,065.49 |
| Investment income obtained from disposal of trading financial assets | 1,530,699.78 | 46,948,848.62 |
| Income from financial products | 2,754,190.61 | |
| Long-term equity investment income by cost method | 36,720,000.00 | 2,754,000.00 |
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.From 1 January 2022 to 30 June 2022(Unless other wise specified, RMB for record in the Statement)
| Item | Current Period | Last Period |
| Investment income of other non-current financial assets during holding period | 76,200.80 | |
| The termination of income recognition for financial assets measured by amortized cost | -1,663,033.71 | |
| Interest income from debt investment during the holding period | 5,356,708.33 | |
| Total | 47,530,171.27 | 37,411,973.74 |
XVIII. Approval of financial statement
The financial statement has already been approved from the board of directors of the Company forreporting dated 16 August 2022.
XIX. Supplementary information for financial statement
1. Non-recurring gains and losses for this period
| Item | Current Period | Note |
| Gains and losses from disposal of non-current assets | 8,358,775.10 | |
| Governmental subsidy reckoned into current gains/losses (not including the subsidy enjoyed in quota or ration according to national standards, which are closely relevant to enterprise’s business) | 41,343,694.48 | |
| Losses/gains from changes of fair values occurred in holding trading financial assets and trading financial liabilities, and investment income obtaining from the disposal of trading financial assets, trading financial liability and financial assets available-for-sale, excluded effective hedging business relevant with normal operations of the Company | 13,172,916.65 | |
| Reversal of the account receivable depreciation reserves subject to separate impairment test | 714,463.58 | |
| Other non-operating income and expenses other than the above | 577,926.96 | |
| Subtotal | 64,167,776.77 | |
| Less: impact on income tax | 6,327,022.61 | |
| Impact on minority shareholders’ equity (post-tax) | 1,573,023.82 | |
| Total | 56,267,730.34 | — |
2. Return on equity and earnings per share
| Profit during the report period | Weighted average return on equity | Earnings per share/EPS (RMB/Share) | |
| Basic EPS | Diluted EPS | ||
| Net profit attributable to ordinary shareholders of the parent company | 1.24% | 0.0582 | 0.0582 |
| Net profit attributable to ordinary shareholders of the parent company after deduction of the non-recurring gains/losses | 0.09% | 0.0040 | 0.0040 |
Chairman: Wu DinggangChanghong Meiling Co., Ltd.
18 August 2022