长虹美菱股份有限公司
CHANGHONG MEILING CO., LTD.
二〇二三年年度报告
Annual Report 2023
I. Important Notice, Table of Contents and DefinitionsBoard 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 2023Annual 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
Shine Wing Certified Public Accountants (LLP) issued standard unqualified Auditors’ Report for the Company’sFinancial Report of 2023.Major defects in internal control
□ Applicable √Not applicable
The Company had no major defects in internal control in the reporting period.Risk warning of concerning the forward-looking statements with future planning involved in 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 annual report, and pay particular attention to the following risk factors:
More details about the possible risks and countermeasures in the operation of the Company are described in thereport “XI. Prospects for the future development of the company” of “Section III. Management Analysis andDiscussion”, investors are advised to read the relevant content.Securities Times, China Securities Journal and Juchao Website (Juchao Website (www.cninfo.com.cn)) are themedia for information disclosure for year of 2024 that appointed by the Company. All public information under thename of the Company disclosed on the above said media and website shall prevail, and investors are advised toexercise 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 reportingperiod
√ Applicable □ Not applicable
Whether to increase the share capital with public reserve
□Yes √No
The profit distribution plan for year of 2023, that deliberated and approved by 42th session of the 10th BOD was:
take total shares of 1,029,923,715 shares as base dated 31 December 2023, distributed 3 Yuan (tax included) bonusin cash for every 10-share hold by all shareholders, no share bonus issued and no capitalizing of common reservescarried out.Directors, supervisors and senior executives of the Company respectively signed a Written Confirmation Opinionsfor 2023 Annual Report.Supervisory Committee of the Company formed Written Examination Opinions for 2023 Annual Report.
Contents
I.Important Notice, Table of contents and Definitions 2II. Company Profile & Financial Highlights. 7III. Management Discussion & Analysis 14IV. Corporate Governance 58V. Environmental & Social Responsibility 88VI. Important Events 96VII. Change of share capital and shareholding of Principal Shareholders 163VIII. Situation of the Preferred Shares 172IX. Corporate Bond 173X. Financial Report 174
Documents Available for Reference
I.Financial statement carrying the signatures and seals of the Chairman, principal of the accounting works andperson in charge of accounting organ;II. Original audit report carrying the seal of the CPA and signature & seal of the accountants;III. Original documents of the Company and manuscripts of public notices that disclosed in the website designatedby CSRC in the report period;
Definition
| Terms to be defined | Refers to | Definition |
| 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 |
| Industry Investment Group | Refers to | Hefei Industry Investment Holding (Group) Co., Ltd. |
| 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. |
| Zhiyijia Company | Refers to | Sichuan Zhiyijia Network Technology 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 |
II. Company Profile & Financial Highlights.I. 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) | 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 | ||
| Registrations add. | No. 2163, Lianhua Road, Economic and Technology Development Zone, Hefei | ||
| Code for registrations add | 230601 | ||
| Historical changes on the registration address | The Company was registered in the Hefei Administration for Industry and Commerce on November 25, 1992 with the address registered as Linquan Road, Hefei City (Meiling Economic Development Zone); on March 13, 1997, registered address changed to No.48 Wuhu Road, Hefei instead of Linquan Road, Hefei City (Meiling Economic Development Zone); on May 19, 2008, the address changed to No. 2163, Lianhua Road, Economic and Technology Development Zone, Hefei from No.48 Wuhu Road, Hefei. Registered address of the Company has not changed during the reporting period. | ||
| Offices add. | No. 2163, Lianhua Road, Economic and Technology Development Zone, Hefei | ||
| Codes for office add. | 230601 | ||
| Website | http://www.meiling.com | ||
| info@meiling.com | |||
II. Person/Way to contact
| Secretary of the Board | |
| Name | Li Xia |
| Contact add. | No. 2163, Lianhua Road, Economic and Technology Development Zone, Hefei |
| Tel. | 0551-62219021 |
| Fax. | 0551-62219021 |
| lixia@meiling.com |
III. Information disclosure and preparation place
| Website of the Stock Exchange where the annual report of the Company disclosed | Shenzhen Stock Exchange www.szse.cn |
| Media and Website where the annual report of the Company disclosed | Securities Times, China Securities Journal and Juchao website: http://www.cninfo.com.cn |
| Preparation place for annual report | Room of secretary of the Board, 2/F , administrative center, Office building of the Company |
IV. Registration changes of the Company
| Organization code | Uniform social credit code:9134000014918555XK | |
| Changes of main business since listing (if applicable) | No changes | |
| Previous changes for controlling shareholders (if applicable) | 1. In October 1993, after initial listing, controlling shareholder of the Company-- Hefei Meiling Industrial Corp. (renamed as Hefei Meiling Group Co., dated 23 May 1994), executing controlling rights of the Company and management right of the state-owned assets on behalf of Hefei State-owned Assets Management Office, named at that time; 2. From November 1997 to May 2003, controlling shareholder of the Company was Hefei Meiling Group Holding Co., Ltd. (established base on former Meiling Group Co.,, “Meiling Group” for short), an enterprise solely owned by the State; mainly operating the state-owned capital in authorized from State-owned Assets Management Commission of Hefei City, ensuring the maintenance and appreciation of state-owned assets; 3. On 29 May 2003, Meiling Group entered into “Equity Transfer Agreement” with Shunde GreenKel Enterprise Development Co., ltd. (“GreenKel”), the 82,852,683 state-owned shares held by the Company was transfer to GreenKel. After transferring, GreenKel comes to the first largest shareholder of the Company. 4. According to the spirit of “Bulletin of Treatment Opinions on GreenKel Company purchasing State-owned Assets Shares of Listed Company” (GZFCQ[2006] No.: 44) jointly issued from SASAC and Ministry of Finance in April 2006, Meiling Group took back the Meiling Electric 82,852,683 shares from GreenKel by procedures, which has been transferred. In September 2006, relevant equity transfer agreement signed between the Meiling Group and GreenKel is invalid, which was confirmed by the “Award” ((2006) HZZ No.: 104) issued from arbitration commission of Hefei; the state-owned legal person’s 82,852,683 shares, held by GreenKel, should return to Meiling Electric, and relevant equity consideration will pay to GreenKel by Meiling Group . On 29 December 2006, the 82,852,683 shares of Meiling Electric were transfer to Meiling Group by GreenKel, and Meiling Group becomes the controlling shareholder of Meiling Electric again. 5. On 18 May 2006 and 11 January 2007, Meiling Group entered into “Equity Transfer Agreement of Meiling Electric” and “Supplementary Agreement of Equity Transfer of Meiling Electric” respectively with Sichuan Changhong and Changhong Group, among the 123,396,375 shares held by Meiling Group, 82,852,683 shares were transferred respectively to Sichuan Changhong and Changhong Group according to the transfer way regulated in agreement; of this transferring, 45,000,000 shares (10.88% of total share capital of the Company) were transferred to Sichuan Changhong, the first largest shareholder of the Company while 37,852,683 shares (9.15% of total share capital of the Company) were transferred to Changhong Group, the third largest shareholder of the Company. 6. On 29 October 2008, Changhong Group and Sichuan Changhong entered into “Equity Transfer Agreement of Hefei Meiling Co., Ltd.”, the 32,078,846 restricted circulations A shares of Meiling Electric held by Changhong Group were transferred by agreement to Sichuan Changhong. On 23 December 2008, the aforesaid equity transfer was approved by “Reply on Matters of Equity held by State-owned Shareholders of Hefei Meiling Co., Ltd.” (GZCQ(2008) No.: 1413) from SASAC; on 21 January 2009, the aforesaid transfer was registered for ownership transfer in Shenzhen Branch of China Securities Depository and Clearing Corporation Limited.The first majority shareholder of the Company comes to Sichuan Changhong. 7. Sichuan Changhong participated in the Company's private placement, and Sichuan Changhong and its concert | |
party, Hong Kong Changhong, purchased the Company's shares through bidding transaction in the secondarymarket.
8. Ended as 31 December 2023, Sichuan Changhong and its concerted action Hong Kong Changhong totally holds281,832,434 shares of the Company, a 27.36% in total share capital of the Company; Sichuan Changhong directlyholds 248,457,724 A-share of the Company, a 24.12% in total share capital of the Company while Hong KongChanghong holds circulation B-share of the Company amounting as 33,374,710 shares, a 3.24% in total sharecapital of the Company.
V. Other relevant information
(1) CPA engaged by the Company
| Name of CPA | Shine Wing Certified Public Accountants (LLP) |
| Offices add. for CPA | 8/F, Block A, Fu Hua Mansion No.8 Chao Yang Men Bei da jie, Dong Cheng District, Beijing, P.R.C |
| Signing Accountants | Wang Xiaodong , Tu Xiaofeng |
(2) Sponsor engaged by the Company for performing continuous supervision duties in reporting period
□ Applicable √ Not applicable
(3) Financial consultant engaged by the Company for performing continuous supervision duties inreporting period
□ Applicable √ Not applicable
VI. Main accounting data and financial indexesWhether it has retroactive adjustment or re-statement on previous accounting data
□ Yes √ No
| 2023 | 2022 | Changes in the current year over the previous year (+,-) | 2021 | |
| Operating income (RMB) | 24,247,678,970.56 | 20,215,220,192.20 | 19.95% | 18,032,957,501.44 |
| Net profit attributable to shareholders of the listed company (RMB) | 741,038,108.54 | 244,538,734.49 | 203.04% | 51,898,388.84 |
| Net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses (RMB) | 749,415,002.39 | 102,739,493.47 | 629.43% | -140,217,633.26 |
| Net cash flow arising from operating activities (RMB) | 2,082,343,305.04 | 1,465,155,748.06 | 42.12% | 160,923,258.10 |
| Basic earnings per share (RMB/Share) | 0.7195 | 0.2366 | 204.10% | 0.0497 |
| Diluted earnings per share (RMB/Share) | 0.7195 | 0.2366 | 204.10% | 0.0497 |
| Weighted average ROE | 13.49% | 4.96% | 8.53 percentage points up | 1.07% |
| Year-end of2023 | Year-end of2022 | Changes at end of the current year compared with the end of previous year (+,-) | Year-end of2021 | |
| Total assets (RMB) | 19,391,604,526.19 | 16,200,361,212.80 | 19.70% | 15,190,469,756.33 |
| Net assets attributable to shareholder of listed company (RMB) | 5,824,782,654.09 | 5,168,286,872.09 | 12.70% | 4,837,334,400.21 |
The cause of the accounting policy change and accounting error correction
□ Applicable √ Not applicable
The lower one of net profit before and after deducting the non-recurring gains/losses in the last three fiscal yearsis negative, and the audit report of last year shows that the ability to continue operating is uncertain
□Yes √ No
The lower one of net profit before and after deducting the non-recurring gains/losses is negative
□Yes √ No
VII. Accounting data difference under domestic and foreign accounting standards
(1) Difference of the net profit and net assets disclosed in financial report, under both IAS (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.
(2) 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 | 741,038,108.54 | 244,538,734.49 | 5,824,782,654.09 | 5,168,471,419.72 |
| Items and amount adjusted by foreign accounting rules | ||||
| Foreign accounting rules | 741,038,108.54 | 244,538,734.49 | 5,824,782,654.09 | 5,168,471,419.72 |
The Company had no difference of the net profit or net assets disclosed in financial report, under either foreignaccounting rules or Chinese GAAP (Generally Accepted Accounting Principles) in the period.
(3) Reasons for the differences of accounting data under accounting rules in and out of China
√ Applicable □ Not applicable
The “Notice of Relevant Issues of Audit for Company with Domestically Foreign Shares Offering” was issued
from CSRC dated 12 September 2007, since the day issuing, cancel the previous “dual audit” requirement forcompanies who offering domestically listed foreign shares (B-share enterprise) while engaging securities practicequalification CPA for auditing. The Company did not compile financial report under foreign accounting rulessince 2007, the financial report of the Company is complying on the “Accounting Standard for BusinessEnterprise” in China, and therefore, there are no differences of accounting data under accounting rules in and outof China at period-end.VIII. Quarterly main financial indexIn RMB
| First quarter | Second quarter | Third quarter | Fourth quarter | |
| Operating income | 5,025,237,527.25 | 7,803,456,796.32 | 6,338,921,510.27 | 5,080,063,136.72 |
| Net profit attributable to the shareholders of the listed company | 122,540,351.10 | 235,514,493.64 | 140,719,309.64 | 242,263,954.16 |
| Net profit after deducting of non-recurring gain/loss attributable to the shareholders of listed company | 103,510,051.94 | 278,479,791.88 | 131,279,099.55 | 236,146,059.02 |
| Net Cash flow generated by business operation | -372,008,676.48 | 1,782,528,486.29 | 995,747,226.04 | -323,923,730.81 |
Whether there are significant differences between the above-mentioned financial index or its total number and therelevant financial index disclosed in the company’s quarterly report and semi-annual report
□Yes √ No
IX. Items and amounts of non-recurring profit (gains)/losses
√ Applicable □ Not applicable
In RMB
| Item | 2023 | 2022 | 2021 | Note |
| Gains/losses from the disposal of non-current asset (including the write-off that accrued for impairment of assets) | 1,336,229.47 | 27,602,023.18 | -133,214.72 | Found more in “Income from assets disposal” and “Non-operation income/expenses” |
| Governmental subsidy calculated into current gains and losses(while closely related with the normal business of the Company, the | 80,683,233.76 | 86,846,880.06 | 103,024,250.74 | Please refer to "Financial expenses" and "Other income" for details |
| 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) | ||||
| 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 | -90,853,412.77 | 36,077,236.23 | 105,811,461.63 | Found more in "Finincial cost",“Investment income” and “Income of fair value changes” |
| Switch back of the impairment for receivables that has impairment test independently | 4,547,547.09 | 2,834,795.58 | 3,245,314.13 | Found more in “Account receivable" and " Constract assets" |
| Other non-operating income and expenses other than the above | 6,927,799.86 | 761,578.29 | 4,867,985.38 | Found more in “Non-operation income" and " Non-operation expenses" |
| Less: impact on income tax | -377,847.36 | 3,581,742.85 | 21,813,023.99 | |
| Impact on minority shareholders’ equity (post-tax) | 11,396,138.62 | 8,741,529.47 | 2,886,751.07 | |
| Total | -8,376,893.85 | 141,799,241.02 | 192,116,022.10 | -- |
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 in
Q&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public ---Extraordinary Profit/loss
□ Applicable √ Not applicable
There are no items defined as recurring profit (gain)/loss according to the lists of extraordinary profit (gain)/lossin Q&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public ---Extraordinary Profit/loss (revised in 2023).
III. Management Discussion & AnalysisI. Industry of the Company during the reporting period
1. Refrigerator industry
The refrigerator industry is a highly mature industry, and the market development has entered the slow developmentstage. From the overall data, In 2023, the price of raw materials remained at a low level throughout the year, andthe pressure on the cost side of enterprises was light, but the recovery speed of the domestic home appliance marketwas lag behind the overall consumption, superimposed that the number of household appliances possessed in Chinawas high, and the market has bided farewell to rapid growth and faced the dilemma of sluggish demand as a whole.According to the total data of AVC, the omni-channel retail sales of refrigerators in 2023 were 133.3 billion yuan,a YOY increase of 7.0%. The impact of overseas markets has subsided, the international sea freight has fallen backto normal levels, the efficiency advantages of Made in China have been highlighted, and the competitiveness of thewhole value chain of export products has been improved; Meanwhile, driven by factors such as the relatively lowinventory level of overseas channels, the export business showed a recovery growth. According to industry onlinedata, the export volume of refrigerators in 2023 was 43.744 million units, a YOY increase of 27.4%.
2.Air-conditioning industry
The domestic air conditioning market is affected by the high temperature weather in 2022, leading to earlier marketconsumption and an overall trend of high opening and low closing. According to the total data of AVC, the retailsales in 2023 was 211.7 billion yuan, a YOY increase of 7.5%, of which the omni-channel gained a growth in thefirst half of the year and the retail sales increased by 19.5% YOY; In the second half of the year, the industrycontinued to decline, with retail sales falling by 15.7% YOY in the third quarter and falling by 15.5% in the fourthquarter.At the beginning of 2023, the overseas air-conditioning market was affected by the international situation,geopolitics, economic downturn, global inflation and other aspects, and the export market of the air-conditioningindustry was under large pressure, and the volume and price fell at the same time. After entering the second quarter,under the comprehensive favorable factors such as the decline in the price of bulk raw materials, the decline inexchange rates and shipping costs, and the global high temperature brought by the El Ni?o phenomenon, thepurchase of air conditioners in overseas markets has increased, and the export demand for household air conditionershas gradually recovered. According to industry online data, the cumulative export of air conditioners in 2023 was
66.265 million units, a YOY increase of 8.3%; and the sales were $13.16 billion, up 1.3% YOY.
3.Washing machine industry
The recovery of the domestic washing machine market in the first half of 2023 was relatively slow, with high growthonly in the fourth quarter, the overall demand release was relatively slow, the scale was steadily recovering, and themarket has entered a period of "intensive cultivation" of steady growth. According to the total data of AVC, theOmni-channel retail sales of domestic washing machines were 93.4 billion yuan, a YOY increase of 5.8%. As exportsales were affected by favorable policies, RMB depreciation, and reduced logistics costs and other factors, whichhave prompted the expansion of China's home appliances to overseas markets. According to industry online data,
the export sales in 2023 was 38.449 million units, a YOY increase of 37.0%.II.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. The Company has always adhered to the principle of "independent innovation, intelligentmanufacturing in China", and has been unswervingly focusing on the home appliance industry, and carefullybuilding the core competitiveness of the enterprise with technological innovation and product innovation. With thecutting-edge R&D team and advanced technology accumulation, Meiling has continuously made breakthroughs inmany fields such as frequency conversion, intelligence, fresh-keeping, thin-walled, deodorant, energy-saving, air-cooled, cryogenic, simulation, ultra-thin, cleaning, and clothing protection. The Company has established the firstRoHS public testing center in Anhui Province, a national enterprise technology center, a national industrial designcenter, a national postdoctoral research station, and a 5G industrial Internet innovation and application laboratory.In recent years, the Company has successively won many national honorary titles such as "Smart RefrigeratorIntelligent Manufacturing Pilot Demonstration Project", "National Green Factory", "National Home ApplianceIndustry Quality Leading Enterprise", "National Technological Innovation Demonstration Enterprise", "ChinaIndustry-University-Research Cooperation Innovation Demonstration Enterprise" and so on. Meanwhile, theCompany has won a number of technical and product innovation honors with its strong innovation, product powerand brand power, and a number of Meiling products have frequently won a number of domestic awards, constantlydemonstrating the ability and strength of Meiling intelligent innovation technology. The Company won the 2023China Refrigerator Industry Smart Health Brand Award at the China Refrigerator Industry Summit Forum;"Research and Industrialization of Constant Temperature Micro-freezing Long-term Preservation Technology" wonthe third prize of Science and Technology Progress Award of China Light Industry Federation; "BCD-537WQ3S"of cross-door air-cooled refrigerator won the "five hundred" energy-saving products for energy conservation andenvironmental protection in the industrial field of the province in 2023 and the green and low-carbon product ofHefei industrial field respectively; In terms of intellectual property rights, "Four-Door Refrigerator (Cross)" and "ARefrigerator Hinge Component and a Refrigerator Based on It" won the Silver Award and Patent Excellence Awardof the 10th Anhui Province Patent Appearance Design respectively; "A refrigerated indoor constant temperaturezone and its control method" won the second prize of the high-value patent competition of six central provinces;Changhong fully dust-free fresh air conditioner won the industry's first "5A fresh air air-conditioning certification";Meiling 10KG hand-washing-like drum washing machine RS2H100 set a world record for the world's fastestdrum washing machine for washing white shirts stained with 10ml of old soy sauce stains, in addition, the producthas also obtained CHCT "maternal and infant household appliance certification" certificate and CVC "productdouble safety standard certification" certificate; Meiling's "Hercules" series pulsator washing machine D7B100 wonthe 2023 "Good Product" of China's home appliance industry sponsored by China Household Electrical AppliancesResearch Institute; Meiling range hood (CXW-188-MY-KD615) won the "Low Noise Range Hood Award" in the2023 Boiling Quality Award evaluation; The two products of "XC-168L intelligent temperature controlled medicalblood box" and "CX-1000 chromatography cabinet" of Zhongke Meiling have passed the new product appraisal ofAnhui Province and obtained the new product appraisal certificate of Anhui Province.
After 40 years of development, the Company has built a new pattern of coordinated development of multiplecategories such as refrigerator cabinets, air conditioners, washing machines, kitchens and bathrooms appliances,small household appliances and biomedical cryogenic storage equipment. Through continuous innovation, we havesuccessively launched a series of industry-leading products such as M fresh refrigerator, the industry's first fullydust-free fresh air conditioner, the industry's leading drum washing machine as clean as hand washing, the industry'sfirst intelligent tea bar machine, and ultra-low temperature medical refrigerator with refrigeration up to minus180 °C, constantly bringing consumers a fresher lifestyle with fresher products.Facing the future, the Company will be based on the direction of digitalization and intelligentization, adhere to theguidance of party building, adhere to value orientation, comprehensively improve efficiency, focus on one goal,improve six capabilities, deepen internal and external collaboration, strengthen compliance and risk control,promote the sustainable and high-quality development of the industry, and take excellent performance as the tractionto expand and strengthen the white household electric appliance. It will further improve the full-scene layout ofsmart home, rely on the Zhihuijia system (composed of the Internet of Things Iot platform and App interactivesoftware), continue to develop 5G complete sets of home appliances, and strive to become a smart home solutionprovider. Meanwhile, we will strengthen digital transformation, and continue to strengthen informatization anddigital transformation around intelligent manufacturing (manufacturing digitalization and quality intelligentization),5G quantum cooperation and network security, and C+3 customer order system, so as to further promote the high-quality development of enterprises.During the reporting period, main income of the Company coming from refrigerator (freezer), air conditioner,washing machine, small home appliances, kitchen & toilet products and biomedical etc., total amounting to 24.022billion yuan, a 99.07% of the operating income.III. Core Competitiveness Analysis
(1) Brand capacity
The Company is one of the famous home appliances manufacturers in China, owns several product lines such asrefrigerator, The "Meiling" brand is listed as one of the most valuable brands in China.The Company adheres to the strategy of "brand revitalization", has in-depth insight of consumer behavior correlatedstrong brand contact point, establishes the four major support points of market, product, service and brand, andmakes joint efforts with each other to form a brand revitalization plan. Through marketing, product experience,service upgrading and brand voice, the seeds of "freshness" are planted into the hearts of consumers, and the brandmindset of "Meiling equals freshness" is shaped in the hearts of consumers, so as to create the freshest products andthe freshest brand image, and ultimately enhance brand awareness, reputation and loyalty.In 2023, the Company took the 40th anniversary as an opportunity to add points to the brand and help the brand getout of the circle by holding a series of themed activities such as "The First Fresh Market Music Festival" and "TheFirst Fresh Factory Marathon"; Meanwhile, it released a new brand proposition of "Beautiful China, Fresh Meiling",and is committed to accompanying the beautiful life of hundreds of millions of families around the world withfresher products, fresher technology and fresher services.The Company continued to adhere to differentiated innovation measures such as technological innovation, productinnovation, and service innovation, and manufactured refrigerators that keep food fresher, washing machines that
make clothes cleaner, air conditioners that make air cleaner, household appliances that make water cleaner, andbiomedical that make samples safer, and bring fresher lifestyles to hundreds of millions of consumers with fresherproducts.
(2) Product capacity
The Company has a relatively advanced and remarkable R&D and quality assurance system, and has passed theISO9001, ISO14001 and other management system certifications, and the products have been guaranteed by highquality and reliable product performance. Meanwhile, the Company has "National Enterprise Technology Center","National Industrial Design Center", "National Intellectual Property Demonstration Enterprise", "NationalIndustrial Product Green Design Demonstration Enterprise", "National Technological Innovation DemonstrationEnterprise", "China Industry-University-Research Cooperation Innovation Demonstration Enterprise", "AnhuiProvince Green Energy-saving Refrigerator Engineering Technology Research Center", "Anhui Province EnergyConservation and Fresh-keeping Green Refrigerator Engineering Research Center", "Anhui ManufacturingInnovation Center" and other authoritative certifications as a strong guarantee. In terms of technical research, theCompany is committed to the application of fundamental technology research and industrialization transfer, and hasestablished a technical strategic plan with "intelligent, frequency conversion, simulation, and preservation" as thecore technology and "refrigeration, new materials, and foaming" as the key technologies. In terms of productresearch and development, a three-layer R&D system of technical research layer, platform module layer and productmanagement layer has been built, and the product manager responsibility system with product management layeras the main body is responsible for the definition and development of products, which is responsible for reducingcosts and improving efficiency internally, driving sales promotion externally, promoting the high integration of"research, production and marketing", and comprehensively connecting the value chain and business chain toachieve "the same desire and the same frequency resonance from top to bottom level ".In terms of refrigerator products, the Company has continued to cultivate in the field of professional refrigerationfor 40 years, through the precise control of market trends and the study of consumer preferences, focusing on theproduct upgrade idea of "fresh, thin, narrow and embedded", and insisting on promoting the continuousimprovement of product competitiveness, we have continued to strengthen the product business cards of "MeilingFresh", "Meiling Thin", "Meiling Narrow" and "Meiling Embedded" in 2023. The Company released the second-generation embedded refrigerators “Worry free embedded Pro”and“All seamless Pro”equipped with dualevaporator system and AI cloud moisturizing technology, the "Frozen Fresh" series refrigerators with watermolecule activated preservation technology and constant temperature fresh-freezing technology, and the newgeneration of "M Fresh" series refrigerators, as well as 600L cross-door and 400L two-door French "big and narrowdoor" series cross-style refrigerators. In terms of freezer products, we have developed a series of freezers with frost-free cabinet opening, thin-walled frost reduction and antibacterial freezers, -40°C cryogenic intelligentelectronically controlled freezers, smart round screen display DTEB series freezers, frequency conversion largefreezer commercial cabinets, -40°C quick-freezing lock fresh vertical air-freezers, outlet vertical air-cooled freezers,SC-270WE single-door refrigeration vertical display cabinets, and commercial kitchen cabinets, and continued tobuild the market mindset of "fresh, frozen and steel" for freezer products.In terms of washing machine products, Meiling released a series of hand-washing-like products on the " ultra-thin"
drum platform, which not only continued the core functional advantages of ultra-thin and large cylinder diameter,but also returned to the essence of washing machines and strived to create a "clean" mindset of washing machines,laying the pioneer status of Meiling clean as clean as hand washing, and also demonstrated the hard core strengthof washing machine products in the core technology field with triple cleaning technology, cleaner washing and ultra-high standard technology. In terms of pulsator type, the Hercules series products have been launched with "ultra-powerful motors, ultra-high wave pulsator, and high cleaning ratios" as the core, achieving industry-leading cleaningcapabilities of product.In terms of air conditioning products, we adhere to the user-centered, based on the actual use scenarios of users, andhave carried out product layout and iterative upgrades from "wind sense, wind outlet, and wind control", so as tocontinuously improve users' physical comfort, visual sense, and control convenience. Adhering to the productplanning in line with the brand positioning, making differentiated products under the trend, focusing on the functionsof full dust-free, long-distance air supply and near-soft air, zonal air supply and intelligent control, we havecontinued to create two product business cards of "choose all dust-free in the bedroom, and choose the guest diningcabinet in the living room" to solve the pain points of user needs and shape the user's mind. Centering on thedevelopment of core technology competitiveness, focusing on air conditioning inverter control technology,simulation technology and innovative technology, we have developed indoor unit direct drive 4.0 technology,winding temperature measurement automatic test and software parameter automatic optimization technology,cabinet side installation less electrolytic miniaturization V2.0 and other technologies. Insisting on strict control ofproduct quality, and continuously strengthening the quality management of core components, the qualitymanagement of the whole machine production, the quality management of key processes and the management ofkey performance indicators, we have continuously improved the product quality.In terms of kitchen and bathroom and small household appliances, we adhere to the strategic support of productlead, focus on the core product line, take market demand as the guide, strengthen R&D capabilities, and optimizeproduct structure. In terms of small household appliances, the small box series of tea bar machine products werelaunched, which became the explosion products in the industry, with sales exceeding 100,000 units. In terms ofkitchen and bathroom appliances, we have continued to innovate and optimize product technology and performance,launched integrated stainless steel heating products in 2023, completely solved the pain points of water leakage inthe industry, and put forward an after-sales commitment of 8-year warranty, which further enhanced the marketreputation of the product and led the industry's product upgrading and service reform. Meanwhile, the release of theindustry's leading gas self-adaptive full premixed wall-hung furnace products, the thermal efficiency is higher thanthe national standard, the nitrogen oxide emission reaches level 5, thus to achieve high efficiency, energy savingand green emissions, the gas adaptive function better adapts to the user's local climate and gas source changes, andthe full premixed load adjustment ratio reaches 1:10, which greatly improves the user's comfortable experience.In terms of biomedicine, we adhere to the brand concept of "taking products as the main carrier and delivering corevalues to users", focus on the field of life sciences, continue to promote product innovation and iteration and qualityupgrading based on user scenario-based needs, and provide users with professional full-scenario solutions, so as tocreate a safe and stable brand image and continuously enhance brand influence. In the field of low-temperaturestorage in life sciences, the new Ruilian series refrigerators were launched, and the temperature uniformity,
temperature fluctuation and energy efficiency index of the products are much higher than the national standard,which is at the advanced level in the industry; The world's first -180°C compressor refrigeration ultra-lowtemperature biological storage equipment was grandly launched, which filled the market gap of compressorrefrigeration equipment in the use scenario of -164°C~-180°C, and was a major breakthrough and innovation in theapplication of multi-mixture working fluid refrigeration technology. The newly launched Ruigu series of desktophigh-speed refrigerated centrifuges, after multi-dimensional repeated tempering, are in the forefront of China interms of centrifugal force, speed, precision, vibration, etc., and the performance fully meets the requirements ofbiological composition centrifugal preparation equipment, escorting the safety of multi-scene laboratories.
(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. At the same time, continuously improved the internal control system and improved the ability toprevent risks.
(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.For the overseas markets, we continued to build marketing capabilities centering on "ice washing synergy, internaland external synergy and channel expansion". Based on the refrigerator and cabinet industry, we have cooperatedwith the team and channel resources to accelerate the washing machine business; With the growth of the washingmachine industry, we have expanded the overall scale of exports, thereby improving operational efficiency andrealizing the positive spiral type synergistic growth of ice washing. Cooperated with the advantages of the domesticmarket "large volume, multi-door" platform resources, we have promoted the structural upgrading of exportbusiness, and realized the two-way empowerment of domestic and overseas business with the synergy of internaland external R&D, manufacturing and resources. At the channel level, the Company adhered to the "market-driven"alternative to the traditional trade model, and built a "2B+2C" comprehensive marketing and promotion capability;Focused on key overseas markets to accelerate brand business and guided by positive scale growth, we havestrengthened brand building by resources integration, and deepened the channel expansion.IV. Main Business AnalysisIn 2023, the competitive pressure of the home appliance industry was fierce, the Company adhered to the value
orientation, comprehensive efficiency improvement, industrial synergy enhancement, and internal and externalsynergy, meanwhile focusing on the main battlefield to explore, the development showed a positive trend of steadyprogress and improvement, and the quality of operation had been greatly improved. During the reporting period,the Company's operating income reached XX yuan, a YOY increase of XX%, and the net profit reached XX yuan,a YOY increase of XX%, and the positive operating ability continued to improve. During the reporting period, theCompany's operating income reached 24.248 billion yuan, a YOY increase of 19.95% and achieved a net profitof 773 million yuan, a YOY increase of 179.04%%, taking a solid step towards positive and stable operation.
(1) Refrigerator (cabinet) industry
In terms of the domestic market, we adhered to the business idea of value-oriented and comprehensive efficiencyimprovement, carried out benchmarking and efficiency improvement around the four dimensions of capitalefficiency, channel efficiency, product efficiency and management efficiency, and made full use of the relativelycomplete sales network and service system to provide customers with high-quality services. The R&D andproduction end is user-centric, solving user pain points, creating user value, and promoting the transformation andupgrading of the Company's products to be more smart and high-leveled. For the market side, the Company adheredto the product strategy of "high-quality plus fine explosive products", and carried out product layout around "fresh,thin, narrow and embedded", and the series of products such as online worry-free embedded PRO and seamlessPRO, offline 400L large and narrow door and frozen fresh products have been successfully launched, gained thegood market response, which have promoted the improvement of product structure and the positive industryoperation.In terms of overseas markets, we have given full play to the synergistic advantages of the industrial supply chainand domestic and foreign sales, continued to promote product upgrades around "large volume and multi-door"according to overseas market demand, promoted product "energy saving" based on global energy efficiency standardupgrades, and built technical advantages around frequency conversion. Meanwhile, adhering to the integration ofproduction, marketing and supply, through the implementation of "production plan according to container schedule",we have increased the proportion of direct delivery, reduced the total inventory, promoted the improvement ofcapital efficiency, improved the inventory turnover rate, and comprehensively enhanced the quality and efficiencyof operation. During the reporting period, the Company's refrigerator (cabinet) business achieved revenue of about
8.809 billion yuan, a YOY increase of 20.47%.
(2) Air-conditioning industry
In terms of the domestic market, focusing on "one goal", we adhered to the marketing strategy of "zoningmanagement and channel expansion". Focusing on online popular single products, we have mainly promoted the"Panda Lazy" cabinet machines and QW hang-up machines, and pursued the positive scale; Expanded unique valueproducts in offline shipping, we continued to create two business cards of "dust-free" and "guest dining cabinet",and enhanced the differentiated competitiveness of products. Throughout the year, the e-commerce business,incremental business and OEM business grew rapidly, the scale of the basic channel business increased steadily,and the capital efficiency and production efficiency continued to improve, reaching the advanced level in theindustry.In terms of overseas markets, the Company continued to promote the healthy development of its business by
centering on brand buildup, product focus, channel breakthroughs and digital transformation. Adhered to theprinciple of brand priority development, we have deeply cultivated the base market; Focusing on core key marketsand key customers, it improved customer scale; By accelerating the expansion of new markets and new customers,the Company has achieved good results. We continued to promote the integrated and efficient operation of sales,production, supply, research, logistics and planning, optimized the layout of the supply chain, narrowed the supplyradius, and continued to improve the efficiency of production and inventory turnover. By building benchmark linesand high-quality projects, we have continuously improved product quality, enhanced product premium ability, andempowered the business.During the reporting period, the Company's air conditioning business achieved a revenueof about 11.566 billion yuan, a YOY increase of 18.24%..
(3) Washing machine industry
The Company's washing machine industry adhered to the differentiated and dislocated competition under themainstream trend, and optimized and adjusted the product structure. In terms of the domestic market, by focusingon the Anhui market, we have focused on promoting the development of outlets, deepened the transformation ofchannels, and achieved scale improvement. Meanwhile we have given full play to the differentiated competitiveadvantage of "Ultra thin", closely focused on user needs, centering on middle products, and launched products suchas hand washing series drum washing machines and Hercules series pulsator washing machines to further enhancethe competitiveness of Meiling washing machines in medium and high-end products.In terms of overseas markets, we have expanded customer resources through ice washing, accelerated thecompletion of product layout in mainstream markets, and achieved breakthroughs in major overseas markets.Focusing on ultra-thin drum and large-capacity pulsator and by integrated resource investment, we have quicklyenriched the matrix of export products, and achieved rapid growth in scale and substantial improvement inprofitability; we have promoted the on-time delivery of new products and comprehensively improved customerservice satisfaction. During the reporting period, the Company's washing machine business achieved the revenue ofabout 1.329 billion yuan, a YOY increase of 76.37%.
(4) Kitchen & bathroom, small appliances
After several years of accumulation and precipitation, the industry has sorted out and determined the developmentdirection of the "troika" with tea-based, cleaning and heating, focusing on core product areas, gradually establishingindustry influence, and promoting the high-quality development of the industry. Each unit continued to promote theupdate and iteration of product technology, accelerated the upgrading of product structure, further enriched theproduct matrix, enhanced product competitiveness, and improved the marketing network system, and continued toinnovate to seek breakthroughs from R&D, production, brand, marketing and service. In 2023, we havecomprehensively strengthened the "product traction", accumulated potential energy, further enhanced the influenceof core product lines, steadily ranked in the top three in the comprehensive ranking of the drinking water category,and continued to improve brand influence.During the reporting period, the Company's kitchen and bathroom andsmall household appliances business achieved the revenue of about 1.849 billion yuan, a YOY increase of 15.16%.
(5)Biomedical
The Company's biomedical industry focused on the field of life sciences, centered on the needs of user scenarios,continuously enhanced the research of core technologies such as ultra-low temperature refrigeration, automation,
and informatization, optimized the R&D process, stimulated innovation vitality, and was committed to providingusers with professional full-scenario solutions. Adhering to the user-centric and by in-depth market segmentationchannel layout, it improved the level of professional services, and constantly shaped brand value; Promoting thestandardization of production processes, improving the level of value chain management, continuously improvingproduct quality and production efficiency, and we have been providing users with first-class products and serviceexperience. The Company's biomedical industry is mainly carried out based on the platform of its subsidiaryZhongke Meiling, and its products are mainly concentrated in the -180 °C to 8 °C full temperature zone biologicalcell cryo, ultra-low temperature storage equipment, -196 °C liquid nitrogen biocontainers, biological safety cabinets,clean workbenches, high-speed refrigerated centrifuges and other terminal products, as well as pharmaceutical coldchain equipment and related comprehensive system solutions in the biomedical field. At present, the Company'sproducts and solutions have been widely used in medical systems, blood systems, disease control systems, healthsystems, university research institutions, biomedical enterprises, genetic engineering and materials research andother fields.During the reporting period, the revenue of biomedical business was about 279 million yuan, a YOYdecrease of 20.75%.(ii) Revenue and cost
1. Constitute of operation revenue
In RMB
| 2023 | 2022 | Increase/decrease y-o-y (+,-) | |||
| Amount | Ratio in operation revenue | Amount | Ratio in operation revenue | ||
| Total operation revenue | 24,247,678,970.56 | 100% | 20,215,220,192.20 | 100% | 19.95% |
| On Industry | |||||
| Manufacture of household appliances | 24,022,148,584.59 | 99.07% | 20,037,625,297.52 | 99.12% | 19.89% |
| Other business | 225,530,385.97 | 0.93% | 177,594,894.68 | 0.88% | 26.99% |
| On products | |||||
| Refrigerator, freezer | 9,088,215,517.67 | 37.48% | 7,664,575,851.66 | 37.91% | 18.57% |
| Air-conditioning | 11,566,440,523.53 | 47.70% | 9,781,896,262.72 | 48.39% | 18.24% |
| Washing machine | 1,329,017,674.88 | 5.48% | 753,549,855.38 | 3.73% | 76.37% |
| Small appliance and kitchen & toilet | 1,849,440,139.12 | 7.63% | 1,605,989,880.27 | 7.94% | 15.16% |
| Other products | 189,034,729.39 | 0.78% | 231,613,447.49 | 1.15% | -18.38% |
| Other business | 225,530,385.97 | 0.93% | 177,594,894.68 | 0.88% | 26.99% |
| Area | |||||
| Domestic | 16,662,953,598.39 | 68.72% | 15,038,808,862.28 | 74.39% | 10.80% |
| Foreign | 7,584,725,372.17 | 31.28% | 5,176,411,329.92 | 25.61% | 46.52% |
| Sub-sale model | |||||
| Direct sales | 225,530,385.97 | 0.93% | 177,594,894.68 | 0.88% | 26.99% |
| Distribution | 24,022,148,584.59 | 99.07% | 20,037,625,297.52 | 99.12% | 19.89% |
2.Situation of Industry, Product and District Occupying the Company’s Business Income and OperatingProfit with Profit over 10%
√ 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 | |
| On Industry | ||||||
| Manufacture of household appliances | 24,022,148,584.59 | 20,725,758,770.77 | 13.72% | 19.89% | 19.63% | 0.18% |
| On products | ||||||
| Refrigerator, freezer | 9,088,215,517.67 | 7,356,737,998.45 | 19.05% | 18.57% | 15.91% | 1.86% |
| Air-conditioning | 11,566,440,523.53 | 10,531,949,090.31 | 8.94% | 18.24% | 20.09% | -1.40% |
| Area | ||||||
| Domestic | 16,447,851,363.99 | 14,152,604,577.11 | 13.95% | 10.60% | 10.62% | -0.02% |
| Foreign | 7,574,297,220.60 | 6,573,154,193.66 | 13.22% | 46.62% | 45.05% | 0.94% |
| Sub-sale model | ||||||
| Sub-sale | 24,022,148,584.59 | 20,725,758,770.77 | 13.72% | 19.89% | 19.63% | 0.18% |
Under circumstances of adjustment in reporting period for statistic scope of main business data, adjusted mainbusiness based on latest on year’s scope of period-end.
□ Applicable √Not applicable
3. Income from physical sales larger than income from labors
√ Yes □ No
| Industries | Item | Unit | 2023 | 2022 | Increase/decrease y-o-y (+,-) |
| Manufacture of household appliances | Sales volume | 10 thousand pieces/set | 3,486.07 | 2,775.34 | 25.06% |
| Production | 10 thousand pieces/set | 3,517.94 | 2,789.28 | 26.12% | |
| Inventory | 10 thousand pieces/set | 140.96 | 109.08 | 29.22% |
Reasons for y-o-y relevant data with over 30% changes
□ Applicable √ Not applicable
4. Performance of the material sales contract and major procurement contracts that signed by theCompany up to the reporting period
□ Applicable √Not applicable
5. Constitute of operation cost
Industry classification
In RMB
| Industries | Item | 2023 | 2022 | Increase/decrease y-o-y (+,-) | ||
| Amount | Ratio in operation cost | Amount | Ratio in operation cost | |||
| Manufacture of household appliances | Raw material | 19,036,931,675.10 | 91.85% | 15,777,586,805.86 | 91.07% | 20.66% |
Note: Nil
6. Whether the changes in the scope of consolidation in Reporting Period
√ Yes □ No
More details can be seen in the report “VII. Changes in the scope of the merger” and “VIII. Interests in otherentities” of “Section X Financial Report”
7. Major changes or adjustment in business, product or service of the Company in Reporting Period
□ Applicable √ Not applicable
8. Major sales client and main suppliers
(1) Major sales client of the Company
| Total top five clients in sales (RMB) | 13,534,796,904.46 |
| Proportion in total annual sales volume for top five clients | 55.82% |
| Proportion of the related parties’ sales in total annual sales volume for top five clients | 32.95% |
Information of top five clients of the Company
| No | Name | Sales (RMB) | Proportion in total annual sales |
| 1 | Client I | 7,289,331,003.57 | 30.06% |
| 2 | Client II | 4,589,467,099.06 | 18.93% |
| 3 | Client III | 777,796,556.14 | 3.21% |
| 4 | Client IV | 699,995,244.09 | 2.89% |
| 5 | Client V | 178,207,001.60 | 0.73% |
| Total | -- | 13,534,796,904.46 | 55.82% |
Other notes of main clients
□ Applicable √ Not applicable
(2) Main suppliers of the Company
| Total purchase amount from top five suppliers (RMB) | 3,860,792,434.26 |
| Proportion in total annual purchase amount for top five suppliers | 20.30% |
| Proportion of related party’s purchase in total annual purchase amount for top five suppliers | 13.73% |
Information of top five suppliers of the Company
| No | Name | Sales (RMB) | Proportion in total annual purchase |
| 1 | Supplier I | 1,248,700,174.10 | 6.57% |
| 2 | Supplier II | 830,491,790.88 | 4.37% |
| 3 | Supplier III | 683,224,664.94 | 3.59% |
| 4 | Supplier IV | 563,608,157.96 | 2.96% |
| 5 | Supplier V | 534,767,646.38 | 2.81% |
| Total | -- | 3,860,792,434.26 | 20.30% |
Other notes of main suppliers
□ Applicable √Not applicable
(iii) Expenses
In RMB
| 2023 | 2022 | Increase/decrease y-o-y (+,-) | Note of major changes | |
| Sales expense | 1,571,486,417.63 | 1,428,874,991.47 | 9.98% | No major changes. |
| Administrative expense | 361,134,794.49 | 358,586,472.37 | 0.71% | No major changes. |
| Financial expense | -118,743,396.49 | -55,214,680.04 | -115.06% | It’s mainly due to the increase in interest income and the decrease in foreign exchange losses of the Company during the period. |
| R&D expense | 596,920,491.26 | 560,383,547.49 | 6.52% | No major changes. |
(iv)Investment in R&D
√Applicable □Not applicable
| Projects | Purpose | Progress | Goals to be achieved | Expected impact on the future development of the Company |
| R&D of frozen fresh series refrigerators | Improve the preservation effect of the freezer and eliminate the pain points of poor food preservation, subsided nutrition and taste caused by the temperature rise of the freezer. | Completed and the product is launched in the market. | With the mindset of Meiling fresh as the main line, create the best freezer products for the preservation in the industry and enhance the market share of Meiling. | 1. User-oriented, centered on user needs, discover the pain points of users in frozen meat preservation, create the best refrigerator for freezing and preservation in the industry, develop a series of frozen fresh products, and spur the freezing |
| fresh preservation product storm in the industry; 2. Through the unique selling point of "refusing to freeze repeatedly, the refrigerator begin fresh frozen from now on", make the size of the box meet the needs of zero flat embedding, maximize the competitiveness of Meiling's middle products and rapidly increase Meiling's market share. | ||||
| Research and development of cabinet-opening frost-free series freezers | Upgrade the direct cooling freezer from frost and frost reduction stage to frost-free directly. | Completed and the product is launched in the market. | Through the cabinet-opening frost-free freezer, it meets people's needs and expectations for the freezer, and immediately shapes the watershed between the cabinet opening frost-free freezer and other freezers. | User-oriented, user-demand centered, with in-depth insight into the pain points of consumers' lives, develop a series of cabinet opening frost-free freezers to perfectly solve the problems that have plagued users for a long time. Driven by technological innovation, rooted in user needs, create fresh products, promote people's healthy eating life to usher in a new round of leap, and perfectly embed the mindset of "Meiling Fresh" in the field of freezers. |
| "Hand-washing-like" drum washing machine research and development | Return to the essence of washing and create a hand-washing effect machine. | Completed and the product is launched in the market. | Through innovative flanges, lifters and other technologies, the "one kneading, two beating and three rinsing" of the drum washing machine is realized, and the "washing" mindset of the drum washing machine is created. | Hand-washing-like technology not only realizes the function of imitation of hand washing, but also can quickly wash some stains with clean water. The consumer side gains a cleaner washing, and the Company side creates a "More cleaning" mindset of Meiling drum washing machine, which is conducive to the scale and profit improvement of the drum washing machine. |
| Research and development of "Hercules" pulsator | To solve consumers' demands for high washing intensity and high cleaning ratio by pulsator products. | Completed and the product is launched in the market. | Through the large motor, the powerful pulsator to realize the washing water flow is larger and the washing ratio is higher. | Hercules technology achieves a cleaning ratio of 0.9, the highest in the industry of the same type of products, and meanwhile |
| washing machine | solves the consumer's demand for high requirements for the washing intensity of pulsator products. Positioning the medium end of the pulsator products, the consumer side gains a more powerful and cleaning washing, and the Company side creates the "Clean washing" mindset of the Meiling pulsator washing machine, which is conducive to the improvement of the scale and profit improvement of the pulsator products. | |||
| Second-generation main transformer integrated technology | Trending technology, pursuing a high degree of standardization and low cost. | Completed and the product is launched in the market. | The main control board and the driver board are integrated with one MCU, and the same main transformer integrated board is used in subsequent development and upgrading, and only the display and control board needs to be changed. | After the completion of the project, the procurement bargaining power is improved, the product development cycle is shortened, and the cost competitiveness of the end products is ensured. |
| R&D and application of miniaturization technology based on Si2C semiconductor high-frequency and less electrolysis | Keeping up with the development trend of the industry, through the application research of the third-generation semiconductor in the frequency conversion technology platform, develop a frequency conversion technology platform for outdoor units with lower loss, higher efficiency, smaller size and higher reliability. | Completed technical research and program development verification, and it has been applied to achieve mass production application | The size of electronically controlled printed boards is reduced by 25%, and the ICT needle planting rate is increased by 35%, while achieving the goal of improving quality and efficiency of production and reducing product costs. | The promotion and application of the program can greatly enhance the comprehensive competitiveness of products of various specifications. |
| Development of dual-wing series on-hook products | Digging deep into the pain points of users, studying user use scenarios, and breaking through the single-pendulum blade design of traditional air conditioners, the dual-wing wind Q7V series innovatively adopts independent partition air supply technology, which divides the air guide swing | Completed and the product is launched in the market. | The excellent product experience has won praise from the market, achieved hot sales of products, and won the "2023-2024 China Air Conditioning Comfort and Health Outstanding Product" award at the Air Conditioning Industry Summit Forum. | Form a product series with Changhong technology label, optimize the product line structure, and improve the quality, level and brand reputation of products. |
| blades into two to achieve asynchronous partition air supply and ensure comfortable air supply for the whole house. | ||||
| Product development of full dust-free fresh air hang-up product | By integrating the advantages of "full dust-free" air conditioning technology with Changhong product IP, we tap the potential of five aspects: super large fresh air, dust-free fresh air, silent fresh air, constant temperature fresh air, and sterilization fresh air, and provide a systematic solution to the user's pain points. | Completed and the product is launched in the market. | Completed the industry's first 5A fresh air product development, and jointly created 5A fresh air air conditioning evaluation technical specifications with industry authoritative certification bodies, and obtained 5A product certification. | Strengthen the IP of Changhong products, achieve the goal of improving the appearance and quality of products and realize the concrete experience of air supply status, and establish a model of high-end products in the industry. |
| Technical research and development of integral water machine products | Improve product performance and reliability to meet the diverse needs of users in the northern heating area | Completed and the product is launched in the market. | Batch sales in the market | Enhance product competitiveness and improve user satisfaction. |
| Technical research and development of heat pump hot air blower products | Improve product performance and reliability to meet the diverse needs of users in the northern heating area | Completed and the product is launched in the market. | Batch sales in the market | Enhance product competitiveness and improve user satisfaction. |
| Technology research and development of special air conditioning products | Meet the needs of users in specific occasions that require temperature and humidity control (such as shelter planting, base stations, etc.) | Completed and the product is launched in the market. | Produced in mass production | To meet the needs of personalized customers, drive the sales of the Company's main products. |
| Technical research and development of split water machine products | Meet the market demand of the northern heating area (which is more suitable for lower temperatures than the monolithic type). | Completed and the product is launched in the market. | Batch sales in the market | Expand the temperature application range of the product and increase the variety of the product lineup. |
| Technical research and application of inverter cascade refrigeration | On the basis of the existing -40~-80°C full range of products, further develop compressor spray cooling technology, compressor frequency | Completed | Put into mass production and sales achieved. | After the completion of the project, it solves the problem of inconvenience for overseas customers due to the confidential formula of |
| system in ultra-low temperature freezer storage box | conversion adjustment and two-stage compressor frequency adaptation technology to achieve better operating conditions and higher product reliability, develop dual-system refrigeration technology to achieve higher energy efficiency and replace liquid nitrogen backup, and develop multi-voltage linkage technology to achieve plug-and-play in all regions of the world. | conventional ultra-low temperature product refrigerant, meets the demand of overseas markets for a full range of products of -40°C~- 80°C, and further develops the overseas market of ultra-low temperature products. | ||
| Research and industrialization project of ultra-low temperature intelligent biobank | The project mainly serves the centralized storage and management of large quantities of biological samples, which can maximize the efficiency of sample preparation quality, reduce cross-contamination, improve the speed of sample preparation and processing, and reduce the risk of error through traceability. | Completed | It solves the problems of freezing and thawing during sample storage, the uneven temperature fluctuation in the library during operation, the batch accurate scanning of samples, and the long-term stable operation of various automation equipment in low temperature environments, so as to realize the mass production and industrialization of ultra-low temperature intelligent biobank. | The success of this project can realize the mass production and industrialization of ultra-low temperature intelligent biobank, help improve the popularity of products, and bring new growth in expanding new business areas, new industries and new markets. |
| Research and application of automated access technology in ultra-low temperature environment - intelligent biobanking | The sample bank management system suitable for automated scenarios is used to solve the problems of freezing, thawing, and safety during sample storage, and realize the intelligent and unmanned management of accurate sample batch scanning and traceability. | Validation phase. | It solves the problems of low utilization rate of sample storage space and the safety of sample storage, low sample storage efficiency, messy sample classification and storage, and imperfect sample information management system, and realizes different types of storage needs such as single, multi-branch, single-box, multi-box, etc., with functions such as automatic fragmentation and scheduled access, which meets the storage needs of biological samples in various application scenarios. | Solving the common problems of safe and accurate management and use of millions of samples in the existing sample bank, which can realize the industrialization of automated biobank and create a new situation for the company in the field of automation. |
| MC-13 series voice tea bar machine | Improve user interaction. | Completed and the product is launched in the market. | Provide differentiated selling points and increase the average price of products. | Increase the market share of products and continue to improve product gross margins. |
| Smart tea machine | Realize steam brewing tea, tea soup separation, automatic tea brewing, and access to the tea cloud mall to realize the prototype of tea ecology. | Completed and the product is launched in the market. | Initially create tea ecology and establish a high-end image of tea drinking. | Establish the leading image in the tea industry, and continue to expand the ecological products of tea drinks. |
| A double-segmented combustion gas heating furnace with DC frequency conversion fan | Develop a wall-hung furnace product with DC frequency conversion fan, which can linearly adjust the air volume in the whole frequency band, and automatically adjust the speed to increase the air pressure when the flue is blocked | Completed and the product is launched in the market. | Lower noise and improved performance, improve product quality. | Create energy-saving and silent products, lead the technological innovation of the wall-hung furnace industry, and enhance the brand's popularity in the wall-hung furnace industry. |
| A kind of rang hood machine product with oil smoke separation function | Develop a rang hood product with oil smoke separation function. Upon the innovative nest oil and smoke separation net, the oil stains cannot reach the inner cavity, effectively protecting the motor and prolonging the life of the whole machine. | Completed and the product is launched in the market. | Iterate product technology, upgrade and optimize and then improve, and consolidate the market position of products. | Create differentiated products, enhance the competitiveness of product lines, and enhance the reputation of brand products. |
Company's R & D personnel situation
| 2023 | 2022 | Change proportion | |
| Number of Research and Development persons (persons) | 1,667 | 1,533 | 8.74% |
| Proportion of Research and Development persons | 15.07% | 15.07% | 0 |
| Academic structure of R&D personnel | |||
| Undergraduate | 1,217 | 1,029 | 18.27% |
| Masters | 113 | 106 | 6.60% |
| Age composition | |||
| Under 30 | 464 | 389 | 19.28% |
| 30~40 | 630 | 584 | 7.88% |
Investment of R&D
| 2023 | 2022 | Change proportion | |
| Investment for R&D (RMB) | 702,362,069.24 | 655,917,101.66 | 7.08% |
| R&D investment/Operating | 2.90% | 3.24% | 0.34 percentage |
| revenue | points up | ||
| Capitalization of R&D investment (RMB) | 147,821,273.96 | 135,753,117.26 | 8.89% |
| Capitalization of R&D investment/R&D investment | 21.05% | 20.70% | 0.35 percentage points up |
Reasons and effects of significant changes in composition of the R&D personnel
□Applicable√ Not applicable
Reasons for significant changes in the proportion of total R&D investment in operating revenue from the previousyear
□Applicable√ Not applicable
Reasons and rationality of the major changes of the capitalization rate of R&D investment
□Applicable√ Not applicable
(v) Cash flow
In RMB
| Item | 2023 | 2022 | Increase/decrease y-o-y (+,-) |
| Subtotal of cash in-flow from operation activity | 25,967,333,384.82 | 21,950,834,479.70 | 18.30% |
| Subtotal of cash out-flow from operation activity | 23,884,990,079.78 | 20,485,678,731.64 | 16.59% |
| Net cash flow from operation activity | 2,082,343,305.04 | 1,465,155,748.06 | 42.12% |
| Subtotal of cash in-flow from investment activity | 1,522,346,208.44 | 1,205,533,608.35 | 26.28% |
| Subtotal of cash out-flow from investment activity | 1,922,055,740.40 | 1,711,918,251.95 | 12.27% |
| Net cash flow from investment activity | -399,709,531.96 | -506,384,643.60 | 21.07% |
| Subtotal of cash in-flow from financing activity | 2,294,196,498.33 | 1,647,463,355.44 | 39.26% |
| Subtotal of cash out-flow from financing activity | 1,712,327,508.38 | 2,402,373,865.79 | -28.72% |
| Net cash flow from financing activity | 581,868,989.95 | -754,910,510.35 | 177.08% |
| Net increased amount of cash and cash equivalent | 2,277,906,566.11 | 273,027,138.19 | 734.32% |
Main reasons for y-o-y major changes in aspect of relevant data
√Applicable □ Not applicable
Major changes in net cash flow from operation activity mainly because the cash paid for good procurement andreceived services during the period increased from a year earlier.The large change of net cash flow generated by fund-raising activities is mainly caused by the change of theCompany's restricted funds and the increase of loans in this period.
Explanation on reasons for the significant differences between the net cash flow arising from operation activitiesin the Period and net profit of last year
√Applicable □ Not applicable
It is mainly due to the increase in operating receivables and operating payables at the end of the reporting periodcompared with the beginning of the year.V. Analysis of the non-main business
√Applicable □ Not applicable
In RMB
| Amount | Ratio in total profit | Note | Whether be sustainable (Y/N) | |
| Investment income | 8,438,592.04 | 1.04% | It is mainly due to the investment income of joint venture investment, creditor's rights investment and other non-current financial assets during the holding period. | No |
| Gains/losses from fair value changes | 7,565,104.05 | 0.93% | It is mainly due to the appraisal income of the company's forward foreign exchange contracts and other non-current financial assets in this period. | No |
| Asset impairment | -55,134,397.60 | -6.81% | It is mainly due to the depreciation of inventory and impairment loss of intangible assets accrued by the company in this period. | No |
| Non-operation income | 14,660,583.17 | 1.81% | It is mainly due to the year-on-year increase in the Company's income from liquidated damages. | No |
| Non-operation expenditure | 7,732,783.31 | 0.96% | It is mainly due to the scrapping loss of non-current assets and public welfare donations of the company in this period. | No |
| Credit impairment losses | -81,621,384.13 | -10.08% | It is mainly due to the impairment loss of accounts receivable accrued by the company in this period. | No |
VI. Analysis of assets and liability(i) Major changes of assets composition
In RMB
| Year-end of 2023 | Year-begin of 2023 | Ratio changes(+,-) | Note of major changes | |||
| Amount | Ratio in total assets | Amount | Ratio in total assets | |||
| Monetary | 8,840,685,525.71 | 45.59% | 6,839,421,779.13 | 42.20% | 3.39% | It is mainly due to the |
| fund | increase in net cash flow generated by the company's operating activities in this period. | |||||
| Account receivable | 1,633,706,889.06 | 8.42% | 1,306,871,945.85 | 8.06% | 0.36% | It is mainly due to the increase in the Company's operating income in this period. |
| Contract assets | 13,261,690.62 | 0.07% | 3,530,922.13 | 0.02% | 0.05% | No major changes. |
| Inventory | 2,022,738,412.97 | 10.43% | 1,710,306,933.71 | 10.55% | -0.12% | It is mainly due to the increase in production of the company in this period. |
| Investment real estate | 50,920,487.71 | 0.26% | 52,898,060.89 | 0.33% | -0.07% | No major changes. |
| Long-term equity investment | 112,745,811.75 | 0.58% | 100,384,428.50 | 0.62% | -0.04% | No major changes. |
| Fix assets | 2,136,912,034.28 | 11.02% | 2,229,553,866.96 | 13.76% | -2.74% | Mainly due to the depreciation of the company's assets in this period.. |
| Construction in progress | 69,920,839.20 | 0.36% | 66,522,492.77 | 0.41% | -0.05% | No major changes. |
| Right-of-use assets | 49,993,400.61 | 0.26% | 36,646,135.10 | 0.23% | 0.03% | No major changes. |
| Short-term loans | 1,134,102,419.03 | 5.85% | 674,143,916.67 | 4.16% | 1.69% | It is mainly due to the increase in short-term loans borrowed by the company in this period. |
| Contract liability | 405,698,756.02 | 2.09% | 358,755,397.77 | 2.21% | -0.12% | No major changes. |
| Long-term loans | 108,000,000.00 | 0.56% | 148,000,000.00 | 0.91% | -0.35% | It is mainly due to the reclassification of the company's long-term loans to non-current liabilities due within one year. |
| Lease liability | 43,488,292.70 | 0.22% | 28,164,287.97 | 0.17% | 0.05% | No major changes. |
| Receivable financing | 1,641,858,740.34 | 8.47% | 1,446,358,719.88 | 8.93% | -0.46% | Mainly due to the decrease in the proportion caused by the increase in the total assets of the company's |
| accounts receivable in this period.. | ||||||
| Creditor's rights investment | 420,537,485.54 | 2.17% | 121,543,750.00 | 0.75% | 1.42% | It is mainly due to the increase in the Company's large deposit certificates in this period. |
Foreign assets account for a relatively high proportion
□Applicable √Not applicable
(ii) 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) | 57,660,588.67 | -18,424,141.04 | 39,236,447.63 | |||||
| 2. Receivable financing | 1,446,358,719.88 | 195,500,020.46 | 1,641,858,740.34 | |||||
| 3. Other non-current financial assets | 628,549,448.31 | 16,256,733.17 | 29,333,334.00 | 674,139,515.48 | ||||
| Subtotal of financial assets | 2,132,568,756.86 | -2,167,407.87 | 29,333,334.00 | 195,500,020.46 | 2,355,234,703.45 | |||
| Above total | 2,132,568,756.86 | -2,167,407.87 | 29,333,334.00 | 195,500,020.46 | 2,355,234,703.45 | |||
| Financial liabilities | 41,961,524.78 | -9,732,511.92 | 32,229,012.86 | |||||
Other changes:
Other changes in receivable financing are caused by the increase of notes receivable aimed at both collectingcontract cash flow (collection) and selling (endorsement or discount).Whether there have major changes on measurement attributes for main assets of the Company in report period ornot
□Yes √ No
(iii) Assets right restricted ended as reporting periodEnded 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 “24. Assets withrestricted ownership or use rights” in “V. Note of consolidate financial statement” carried under Section X.Financial Report
VII. Investment analysis(i) Overall situation
√Applicable □ Not applicable
| Investment in the reporting (RMB) | Investment in the same period of last year ( RMB) | Changes |
| 45,000,000.00 | 200,000,000.00 | -77.50% |
(ii) The major equity investment obtained in the reporting period
√Applicable □ Not applicable
In RMB
| Name of invested | Principal business | Method of investment | Amount of investment | Shareholding ratio | Capital sources | Partners | Term of investment | Type of products | Status as of the balance sheet date | Expected return | Current investment profit and loss | Whether involved in a lawsuit(Y/N) | Date of disclosure (if applicable ) | Index of disclosure (if applicable ) |
| Sichuan Hongyun Venture Capital Partnership (Limited Partnership) | General items: Venture capital (limited to investment in unlisted enterprises) | Newly established | 45,000,000.00 | 30.41% | Self-fund | Sichuan Hongyun Venture Stock Investment Management Co., Ltd.,Sichuan Changhong Electronics Holding Group Co., Ltd.,Sichuan Changhong Electric Co., Ltd. | 8 years | Not applicable | During the reporting period Complete the first phase Invest 1800 yuan Ten thousand yuan. | Not applicable | 47,270.54 | No | 2023-01-18 | Juchao Website http://www.cninfo.com.cn（2023-004) |
| Total | -- | -- | 45,000,000.00 | -- | -- | -- | -- | -- | -- | -- | 47,270.54 | -- | -- | -- |
(iii)The material non-equity investment in the reporting period
□ Applicable √Not applicable
(iv)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
(1) Derivatives investment for hedging purposes during the reporting period
√ Applicable □ Not applicable
In RMB 10,000
| Type | Initial investment | Amount at the beginning period | Profit and loss of fair value change in the current period | Changes in the cumulative fair value included in the equity | Amount purchased in the reporting period | Amount sales in the reporting period | Investment amount at period-end | Ratio of investment amount at period-end in net assets of the Company at period-end |
| Forward foreign exchange contract | 385,815.06 | 217,191.87 | -869.16 | 0 | 736,225.85 | 632,474.92 | 332,515.07 | 57.09% |
| Total | 385,815.06 | 217,191.87 | -869.16 | 0 | 736,225.85 | 632,474.92 | 332,515.07 | 57.09% |
| Specific principle of the accounting policy and calculation for derivatives in the Period compared with last period in aspect of major changes | Not applicable | |||||||
| Description of actual profit and loss during the reporting period | During the reporting period, the Company confirmed the income from derivatives investment of RMB -115.7228.million. | |||||||
| Description of hedging effect | During the reporting period, the Company adhered to the principle of exchange rate risk neutrality, used forward foreign exchange contracts as hedging tools, and signed forward foreign exchange contracts according to the foreign exchange receipt amount predicted by sales and the target cost exchange rate. The delivery period matched with the predicted return amount, and the agreed delivery amount matched with the predicted return amount to avoid the risks caused by exchange rate fluctuations. The cash flow changes in the hedging tools during the reporting period can offset the cash flow changes in the hedged items caused by exchange rate fluctuations, which met the requirements of hedging effectiveness and achieved the hedging objectives. | |||||||
| Capital resource | Own fund | |||||||
| 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 the risk of loss may bring to the Company is very low. 4. Operational risk: improper operation of the person in charge of forward foreign exchange transactions may cause related risk also. The Company has formulated related management system which defines the operation process and responsibility to prevent and control risks. 5. The legal risks: unclear terms based in contract signed with banks for related transactions may lead legal risks when forward foreign exchange transactions are processing. The Company will strengthen legal review, and choose good bank to carry out this kind of business as to risk control. |
| Invested derivative products have changes in 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. |
| Lawsuit involved (if applicable) | Not applicable |
| Disclosure date for approval from the Board for investment of derivatives (if applicable) | March 31,2023 |
| Disclosure date for approval from board of shareholders for investment of derivatives (if applicable) | April 26,2023 |
| Special opinion on derivative investment and | Upon inspection, the Company believes that: during the reporting period, the Company carried out its foreign exchange forward deals in strict compliance with the |
| risk control by independent directors | 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 relevant rules and regulations and relevant business was conducted under corresponding decision-making procedures. Interests of the Company and entire shareholders, especially minority shareholders, were not prejudiced. |
(2）Derivative investments for speculation during the reporting period
□ Applicable √ Not applicable
The Company had no derivative investment in the reporting period.(v) Application of raised proceeds
□ Applicable √ Not applicable
NilVIII. Sales of major assets and equity(i) Sales of major assets
□ Applicable √ Not applicable
No major assets are sold in the period(ii) Sales of major equity
□ Applicable √ Not applicable
IX. Analysis of main holding company and stock-jointly companies
√ Applicable □ Not applicable
(i) Particular about main subsidiaries and stock-jointly companies net profit over 10%
In RMB
| 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 | 96,730,934 | 734,480,745.25 | 601,519,972.36 | 302,785,719.33 | 19,141,881.46 | 16,126,507.82 |
| Jiangxi Meiling Electric Appliance Co., Ltd. | Subsidiary | Manufacturing of refrigeration and freezer | 50,000,000 | 351,277,453.94 | 155,046,616.61 | 720,626,403.48 | 12,407,856.59 | 12,408,056.59 |
| Mianyang Meiling Refrigeration Co., Ltd. | Subsidiary | Manufacturing of refrigeration and freezer | 100,000,000 | 191,889,234.80 | 120,713,472.01 | 285,257,334.95 | -360,873.32 | -354,646.22 |
| Sichuan Changhong Air-conditioner Co., Ltd. | Subsidiary | R&D, manufacturing and domestic sales of air-conditioning | 850,000,000 | 4,004,171,452.80 | 1,220,575,635.42 | 8,008,596,138.13 | 229,101,892.24 | 229,982,423.10 |
| Zhongshan Changhong Electric Co., Ltd. | Subsidiary | R&D, manufacturing and foreign sales of air-conditioning | 334,000,000 | 2,295,526,431.19 | 348,248,735.78 | 3,750,169,165.68 | 161,004,581.85 | 160,707,265.04 |
| Hefei Meiling Group Holdings Limited | Subsidiary | Sales of white goods | 80,000,000 | 1,161,054,046.07 | -292,136,413.06 | 5,719,876,952.55 | 140,340,587.18 | 134,924,071.03 |
| Hefei Changhong Meiling Life Appliances Co., Ltd. | Subsidiary | R&D and sales of household appliances, kitchen appliances and small home appliances | 50,000,000 | 622,486,357.58 | 139,793,516.06 | 1,660,852,475.77 | 63,306,977.04 | 57,607,898.93 |
(ii) 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 |
| Hefei Meiling Electric Appliances Marketing Co., Ltd | Cancellation | Minor effect on the overall production and operation and performance of the company |
| Wuhan Meizhirong Electric Appliances Marketing Co., Ltd | Cancellation | Minor effect on the overall production and operation and performance of the company |
() Description of the holding company and stock-jointly companies
□ Applicable √ Not applicable
X. Structured entity controlled by the Company
□ Applicable √ Not applicable
XI. Prospects for the future development of the company
(1)Macro environment analysis
China further encourages and guides consumption, enhances consumption capacity and optimizes consumptionenvironment; encourages digital consumption and promotes live E-commerce; encourages green consumption andreduces the "carbon content" of consumption.However, the domestic macro-economy is still in the stage of sustainedrecovery, the real estate industry is in periodic adjustment, the residents' consumption ability is insufficient, thetraditional home appliances industry is in full competition with high product homogeneity, and the industrydevelopment has entered the era of stock competition.The International Monetary Fund predicts that the global economic growth rate will slow down from 3.0% in 2023to 2.9% in 2024, which is lower than the historical average of 3.8%. Moreover, overseas inflationary pressurepersists, trade protectionism re-surges, political risks and geopolitical tensions intensify, and there is still greatuncertainty in the development of overseas business.
(2) Industry environment analysis
1.Refrigerator (freezer) industry
Domestically, according to the data released by the National Bureau of Statistics, in 2023, the number of homeappliances in major categories such as refrigerators, washing machines and air conditioners exceeded 3 billion, andthe demand for upgrading is great. China's home appliance market has entered the era of stock replacement. TheMinistry of Commerce of China stated that promoting the trade-in of home appliances in 2024 is the focus ofpromoting consumption this year. The additional policy effect is expected to bring improved upgrading trend ofproduct structure due to the trade-in process in 2024, and a steady development trend of the scale of refrigerators(freezers).Compared with previous years, the price of copper and aluminum, which accounts for a relatively highproportion of raw materials for refrigerators (freezers), has dropped, and the additional ability of enterprises toreduce costs and improve efficiency has been enhanced. Refrigerators (freezers) enterprises are still in the costdividend period, but in 2024, with the economic growth, it is expected that the price of bulk raw materials will rise,and the dividend will decrease accordingly.In terms of export, under the dual aid of scale effect and continuous breakthrough in manufacturing efficiency, the
cost advantage boundary wall brought by small platforms and low investment of small and medium-sized brandshas been broken, the concentration of the top brands has further increased, and the importance of efficiency to thehealthy operation of enterprises has been enhanced.Driven by new standards and regulations, the industrial structurehas been rapidly upgraded, and the products shows a significant trend of energy saving, frequency conversion andlarge volume; Green industry has a more prominent impact on the home appliance industry, and the demand forlow-carbon production, recyclable and degradable environment-friendly materials is increasing year by year. Underthe structural change, there will be new industrial opportunities and challenges to the development of enterprises.
2. Air-conditioning industry
Domestically, with the upcoming turning point in the real estate market and the increase in the number of airconditioners, the household air conditioning industry has transitioned from the incremental era to the stockcompetition era. According to the forecast by All View Cloud (AVC), in 2024, the retail sales in air-conditioningmarket will drop by 1.4% year on year, and the industry will enter the stage of periodic adjustment.In addition,through multi-brand operation, the top brands have comprehensively covered high-, medium- and low-end products,and the price competition becomes increasingly fierce, and the living space of second- and third-line brands isfurther narrowed.In terms of export, with the continuous advancement of economic globalization, the global market competition willbecome more intense.Due to the growth of the middle class and the acceleration of urbanization in emerging markets,the demand for air conditioners will continue to grow.Meanwhile, with global warming and frequent extremeweather events, the requirements for energy efficiency and environmental protection of air-conditioning productswill be further increased. In addition, with the reorganization of global supply chain and the promotion of productvalue chain, the global production and sales layout of multinational companies will be further optimized to meet thechanging market demand.According to the industry online forecast, the export volume of household air conditionersin China will increase by 0.8% in the cold year of 2024.
3.Washing machine
The washing machine industry has been impacted by the previous downturn in the home appliance market, and thetrend of consumer recovery in the home appliance market is not significant. There are four main reasons for this:
large stock in the home appliance market, some consumer goods becoming optional, low consumption frequency,and non-urgent demand for upgrading .Overall, under the influence of many factors, it is expected that the washingmachine industry will show a weak recovery trend in 2024.As for the products, influenced by the trend of smarthome appliance integration, large-capacity and ultra-thin embedded products have become the development trendof the industry.
4.Kitchen & bathroom, small appliance
Kitchen and bathroom appliances have always been an important component of household appliances. With theimprovement of living standards and the transformation of kitchen functionality, people have put forward higherrequirements for kitchens and kitchen appliances. In terms of functionality, it is required that the kitchen be classifiedand partitioned, with clear flow lines and complete functions. The kitchen electrical products should collaborate tocomplete a series of tasks such as washing, cooking, and cleaning. At the same time, health and nutrition should be
taken into consideration. In terms of layout, it is necessary to not only release as much space as possible, but alsoachieve greater storage and storage. Under this promotion, the structure of kitchen appliances continues to adjustand upgrade, and the proportion of mainstream categories in the market is gradually increasing. The upgrading andinnovation of product core functions has become an important direction for the industry to seek breakthroughs.The small home appliance market is generally in a period of consolidation. With the high enthusiasm of people fordining out and tourism, as well as the suppression of demand from the early sales boom of small home appliances,the market heat of some categories of small home appliances has decreased. Small household appliances cover awide range of categories, covering all aspects of people's home life, so their growth paths and development trendsare also different. However, from the perspective of channels, the overall revenue of the small household appliancesTiktok channel has increased significantly, and each major node has significantly promoted the growth. Backed bythe high flow short video platform and content platform, the new channel resource investment is expected to drivethe rapid improvement of brand awareness and enable long-term growth..
5.Bio-medical
With the growth of China's per capita GDP and per capita disposable income and the trend of accelerated aging ofpopulation, the national expenditure on medical care will keep increasing.In the meantime, with the developmentand construction of China's medical and health system, more and more attention has been paid to biosafety, whichhas stimulated the growing demand for potential biological sample storage; With the expansion ofbiopharmaceuticals, the scale of global refrigerated drugs has expanded, and the demand for low-temperaturestorage equipment has continued to grow; The medical device industry has a huge market with many sub-sectors.After upgrading the equipment of primary medical institutions, the market demand for various medical devices willincrease steadily.Policy support injects development momentum into the medical device industry.In recent years, China has attachedgreat importance to the medical device industry and provided great support at the policy level. In July 2023, NationalHealth Commission issued the recommended health industry standard Equipment Configuration Standard forCounty General Hospitals", which came into effect on January 1, 2024, and stipulated the basic principles for theconfiguration of equipment worthy of RMB 10,000 and above in county general hospitals, and made minimumconfiguration standards for basic equipment items such as centrifuges, medical freezers, biosafety cabinets andmedical blood freezers. From 2024, the allocation of primary medical equipment will be gradually increased, andthe demand for medical equipment is expected to continue to be released.(iii) Business plan for 2024
1. Business ideas
The Company adheres to the guidance of party building, adheres to the value orientation, comprehensively improvesefficiency, enhances six capabilities around "one goal", deepens internal and external coordination, strengthenscompliance risk control, and promotes its sustained and high-quality development. In 2024, it will strive to movetowards double-digit growth in annual income, while striving to maintain steady growth in net profit.
(1) Instruction by party building
It will fully integrate party building with production and operation, with synchronous plan, synchronous deployment,
synchronous promotion and synchronous assessment, promote development with party building, and strengthenparty building with development.It will unswervingly enrich its minds, guide practice and promote work withsocialism with Chinese characteristic thought in the Xi Jinping's new era, and jointly promote the Company's high-quality development; It will adhere to goal orientation and problem orientation, resolutely grasp the responsibilityof party building, focus on improving the quality of party building, further improve the party building system, andbuild a strong grassroots fighting fortress; It will earnestly fulfill the responsibility of strengthening party self-discipline in an all-round way and well ensure a clean and honest government.
(2) Construction of six powers
Construction of brand power.It will focus on product business cards, systematically carry out public and privatedomain, localized user operation and new media operation, and enhance the brand reputation, popularity and loyalty.Construction of product power.It will adhere to user-orientation, solve users' difficulties, create value for users,accurately control market trends, and study people's consumption preferences. In terms of refrigerators, strengthenthe product business cards of "Meiling Fresh", "Meiling Thin", "Meiling Narrow" and "Meiling Embedded"; Interms of air conditioners, tamp down the two product business cards of "All-dust-free" and "Living and DiningCabinet"; In terms of washing machines, create the business cards of "Clean" andConstruction of marketing power.It will focus on ensuring retail, promoting quality products, improving efficiencyand strengthening diversion, continue to establish and build a marketing system, strengthen terminal marketingcapacity building, enhance terminal brand image, deepen the upgrading of marketing thinking, build a high-qualitymarketing team, improve the professional planning and promotion capabilities, and win the battle of terminalcompetition.Construction of channel power.Domestically, it will focus on consolidating its own channels, outperforming theretail channels, expanding incremental channels, and breaking through emerging channels, so as to improve channelcarrying capacity and channel operation quality.It will build overseas distribution channels, deepen the constructionof customer system, focus on resources to ensure high-quality customers, focus on brand business, andcomprehensively achieve double growth in both scale and share.Construction of service power.Focusing on product delivery, after-sales service, quality management and customersatisfaction, it will use digital tools as a means to improve product delivery efficiency, enhance after-sales servicequality, ensure product delivery quality and comprehensively improve service capacity through efficiencyimprovement and cost reduction.Construction of organizational power.It will optimize the internal organizational structure by benchmarking andimprove organizational efficiency; Optimize the incentive system, improve the mechanism of "selection, training,use and retaining", strengthen internal competition and enhance organizational ability and vitality.
(3) Internal and external coordination
It will continue to focus on internal and external coordination and industrial coordination, and promote R&D,manufacturing, procurement and sales to strengthen complementary resources and mutual assistance, and promoteindustrial development.
(4) Compliance risk control
It will carry out various tasks around the "Year of Strengthening Compliance Management" in 2024, and strengthenand improve the construction of compliance risk control system.It will continue to strengthen the publicity ofcompliance culture, constantly improve the "1+N" system of compliance risk control, strengthen the "trinity" riskprevention and control mechanism of compliance, risk control and internal control, and give full play to the role of"three lines of defense" of business department, compliance department and audit department.It will strengthencompliance management in an all-round way, establish a "hierarchical" compliance risk identification andevaluation warning mechanism, incorporate the compliance work into the business process, establish an operationmechanism of "integration of industry and regulation", continuously improve the awareness and ability of riskprevention and control, continuously improve the management level of compliance according to law, and ensure thesafety and compliance of the Company's overall operation.
2. Market strategy
(1) Refrigerators (freezers)
In terms of domestic market, faced with the challenges of product structure upgrading and fierce competition in thestock market, it will make product layout around "fresh, thin, narrow and embedded", and promote quality productsand hot quality products, create hot products, optimize the product structure, and provide consumers with productsof unique value based on the customer-oriented principle.In terms of products, It will focus on SKU productefficiency, improve product quality and enhance product competitiveness.In terms of channels, it will promote therefined management of core customers, adhere to the channel strategy of "consolidating our own channels,expanding incremental channels, breaking through emerging channels and outperforming retail channels", andstrengthen the quality and efficiency of retail channels by optimizing product layout, strengthening operationalcapabilities and strengthening channel efforts, so as to seize the market opportunities of emerging channels. In termsof marketing, it will strengthen the terminal marketing capacity building, enhance the terminal imagecompetitiveness, focus on the marketing of new media content, and improve the user operation and drainagetransformation.In terms of overseas markets, it will upgrade the global demand structure, strengthen upgraded product planningand differentiated product design, and at the same time strengthen efficiency improvement.By focusing on keymarkets and core high-quality customers, it will open up regional markets with high synergy with the domesticmarket, tap development potential markets, and continuously improve customer efficiency. It will accelerate brandbusiness, increase investment in brand teams and products, and continue to promote the construction of overseasindependent brands.
(2) Air conditioners
In terms of domestic market, on the premise of maintaining benign operation, it will enlarge the scale and increasethe average price through the business strategy of "brand promotion, product upgrading, channel expansion andcomprehensive retail". With the product as the carrier, it will expound the brand mind and brand values of "precisionquality and comfort in every degree", interpret the spirit of "responsibility, innovation and tenacity" and realizecultural resonance with customers; adhere to the user-orientation, grasps the healthy, comfortable and energy-savingmarket trend, and strengthen the R&D of core technologies and the transformation of results; It will focus on
"differential management and channel expansion", intensively cultivate profit channels, improve image channels,speed up scale channels, break through flow channels and explore incremental channels; strengthen productpromotion, optimize terminal construction and enhance retail transformation.In terms of overseas markets, it will continue to practice the concept of "profitable scale growth and profitable cashflow growth", adhere to brand priority, open up base markets and expand brand agency; preserve stock, seekincrement, focus on superior channels and open up new markets; follow the market trend, launch high-qualityproducts, launch new products, and launch variable frequency products; adhere to business-oriented and customer-centered principles, and constantly improve product quality, customer service ability and customer satisfaction.
(3) Washing machines
The washing machine business will continue to take the industrial vision of "washing all stains and protecting thewhole family".It will enrich its products and upgrade its product structure around the product business cards of"clean", "thin" and "smart". On the basis of hand-washing series products, it will create a second-generationupgraded product to meet the cleaning needs of consumers and further improve the cleaning ability. It will developa flat-embedded series of washing and drying package products, further adapting into home integration. In thedomestic market, it will continue to deepen the base market, focus on the construction of basic and e-commercechannels, and achieve steady growth in scale.In overseas markets, it will "grasp one core and two basic aspects" andstrengthen cooperation with key customers; focus on color screen drum washing machine, and build a leader incolor screen products in the global market.
(4) Kitchen and bathroom products and small home appliances
It will strengthen the R&D capacity building in the kitchen and bathroom products and small home appliancesindustries, continuously consolidate the market position of core products and further enhance the brandinfluence.For product line of tea-based drink, it will strengthen the core competitiveness, focus on the improvementand function enhancement of self-developed and self-made products, and enhance the management quality.It willclean the product line of electrical appliances, focus on strengthening the functions of the project team and promotethe rapid development of the project.In terms of fuel-fired product line, it will continue to take the marketing strategyas the guide, speed up the development and launch of gas core technologies, and quickly realize the marketizationof products.The industry will focus on resource investment, and realize the "Troika" marching hand in hand bystrengthening R&D capability and precise marketing strategy.
(5) Biomedical products
It will unswervingly implement the development strategy of "diversification based on biomedical field", focus onthe field of life sciences, deepen the construction of domestic and international channel system with user orientation,deeply tap the needs of users, deepen technology and innovate product design, and improve service level in an all-round manner to expand user coverage and product market share.The Company always adheres to the businessphilosophy of "technology-founded, product-based, market-oriented and customer-centered", and continues tooperate steadily around the business principles of deepening channels, innovating products, optimizing quality andimproving efficiency.The above business plans and business objectives do not represent the listed company's profit forecast for 2024.
Whether they can be realized depends on many factors such as changes in market conditions and the efforts of themanagement team. There is great uncertainty, which shall be especially noted by the investors.
(IV) Possible risks and countermeasuresFacing the objective factors such as more intense competition in the home appliance market, the living environmentof enterprises will be even worse.In 2024, the Company will face risks such as intensified industry competition,exchange rate fluctuation, price fluctuation of bulk materials, trade friction and geopolitical influence.
1. Risk of intensified industry competition
The traditional home appliance industry is in full competition, with high product homogeneity. The industrydevelopment has entered the era of stock competition. In addition, the incremental demand of other competitivebrands will further aggravate the product competition situation, leading to the risk of price war.Faced with severechallenges, the Company will actively increase R&D investment and win customers through continuous innovationof products and services.
2. Risk of exchange rate fluctuation
Affected by the international situation, the exchange rate fluctuates greatly.The Company will pay close attentionto exchange rate changes and operate steadily to reduce the impact of exchange rate changes.
3. Risk of price fluctuation of bulk materials
The main raw materials of the Company's products are steel, copper, aluminum, plastics and chemical materials,etc. If the prices of bulk raw materials fluctuate greatly, the related costs will also change accordingly, which willhave a certain impact on the company's operating performance.The Company will continue to pay attention to theprice fluctuation of bulk materials and take timely measures to deal with risks and reduce the impact of pricefluctuations.
4. Influence of trade friction and geopolitics
The Company pays close attention to the impact of uncertain factors such as international trade friction andgeopolitics on its global business.In view of the above risks, combined with the industry situation in 2024 and its own disadvantages in 2023, theCompany will carry out its work in 2024 with the business idea of "adhering to the leadership of party building,adhering to the value orientation, comprehensively improving efficiency, enhancing six powers around one goal,deepening internal and external cooperation, strengthening compliance risk control, and promoting the Company'ssustained and high-quality development", and make the layout of products, technologies and markets in advance torealize the high-end and intelligent transformation of the Company's products, enrich the product line, enhance theCompany's operating ability and profitability, and build a comprehensive home appliance enterprise.
XII. In the report period, reception of research, communication and interview
□ Applicable √Not applicable
| Time | Location | Way | Reception object | Type | Main contents of the discussion and the information provided | Basic situation index of investigation |
| February 1,2023 | #2 reference room of the administrative center of the Company | Field research | Institute | Huaan Funds | Operation condition of the Company | http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&orgId=gssz0000521&stockCode=000521&announcementId=1215755626&announcementTime=2023-02-02%2017:40 |
| February 2,2023 | #3 reference room of the administrative center of the Company | Field research | Individual | Dong Guoshuai | Operation condition of the Company | http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&orgId=gssz0000521&stockCode=000521&announcementId=1215767818&announcementTime=2023-02-03%2017:24 |
| February 22,2023 | —— | Online platform for online communication | Institute | Shanghai Shenyin Wanguo Seccurities ,Guotai Fund | Operation condition of the Company | http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&orgId=gssz0000521&stockCode=000521&announcementId=1215951190&announcementTime=2023-02-23%2017:22 |
| April 6,2023 | —— | Online platform for online communication | Institute | Huaan Funds | Operation condition of the Company | http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&orgId=gssz0000521&stockCode=000521&announcementId=1216353750&announcementTime=2023-04-07%2016:08 |
| April 14,2023 | #2 reference room of the administrative center of the Company | Other | Other | Investors who participated in the 2022 annual performance briefing through Panorama.com’s “Investor Relations Interactive Platform” (https://ir.p5w.net) | Holding a presentation on the 2022 annual business results and responding the questions that investors concerned | http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&orgId=gssz0000521&stockCode=000521&announcementId=1216438317&announcementTime=2023-04-17%2018:35 |
| April 20,2023 | #2 reference room of the administrative center of the Company | Online platform for online communication | Institute | Southern Fund,China Securities, Penghua Fund, Tebon fund, Shenwan Hongyuan,Orient Securities,Maxwealth Fund,Winsure Capital, Bank of China Investment Management, PICC Fund, Guangfa Fund, Jingan Investment | Operation condition of the Company | http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&orgId=gssz0000521&stockCode=000521&announcementId=1216497454&announcementTime=2023-04-20%2021:16 |
| April 21,2023 | #2 , #3 reference room of the administrative center of the Company | Online platform for online communication | Institute | Changjiang Securities, Taiping Capital, Bocom Schroders, Boshi Fund | Operation condition of the Company | http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&orgId=gssz0000521&stockCode=000521&announcementId=1216518995&announcementTime=2023-04-21%2018:03 |
| April 24,2023 | #2 reference room of the administrative center of the Company | Online platform for online communication | Institute | Capital Group,CICC Appliances, Pingan Assets,China Universal Asset Management, Huaan Fund, Jiashi Fund, Zhong Ou AMC, Guangfa Fund, Boshi Fund, Taiping Assets, Guotai Fund, AXA SPDB, Investment Managers,Cinda Fund,Jingshun Grest wall, Huatai Bairui | Operation condition of the Company | http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&orgId=gssz0000521&stockCode=000521&announcementId=1216552643&announcementTime=2023-04-24%2018:27 |
| April 26, | #1 , #3 reference | Online | Institute | China Securities, Huaxia | Operation condition of the | http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&orgId=g |
| 2023; April 27, 2023 | room of the administrative center of the Company | platform for online communication | Fund,Changjiang Pension, Huabao Fund, Guangfa Fund, Tianhong Fund, Baoying Fund, Southwest Securities, Pingan Pension,Guosheng Securities,CITIC Securities | Company | ssz0000521&stockCode=000521&announcementId=1216646210&announcementTime=2023-04-27%2017:18 | |
| May 8,2023 | #2 reference room of the administrative center of the Company | Field research | Institute | Minsheng Securities, Industry Securities,Tebon Securities,DIB Asset Management, Huafu Fund, CITIC Securities,Sinolink Securities,Guotai Junan, CMS Securities,ZRF | Operation condition of the Company | http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&orgId=gssz0000521&stockCode=000521&announcementId=1216780403&announcementTime=2023-05-09%2017:07 |
| May 10,2023, May 11, 2023 | ##2 reference room of the administrative center of the Company | Online platform for online communication | Institute | Fuguo Fund, Guotai Junan Securities,Maxwealth Fund ,Pengyang Fund, Western Lfadbank FMC, Huafu Fund, China Universal Asset Mangement | Operation condition of the Company | http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&orgId=gssz0000521&stockCode=000521&announcementId=1216800095&announcementTime=2023-05-11%2018:23 |
| May 17,2023,May 18, 2023 | #1 , #4 reference room of the administrative center of the Company | Online platform for online communication | Institute | Southwest Securities, , Great Wall Securities, Jinying Securities,CICC Asset Management, Changxin Fund, Noude Fund, Zhong OU, Bank of | Operation condition of the Company | http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&orgId=gssz0000521&stockCode=000521&announcementId=1216852449&announcementTime=2023-05-18%2017:49 |
| China Investment Management | ||||||
| May 24, 2023,May 25, 2023 | #2 , #4 reference room of the administrative center of the Company | Field research | Institute | Zhongtai Securities, Xinda Appliances, Haifutong Fund, Tianfeng Securites, Gousheng Securities | Operation condition of the Company | http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&orgId=gssz0000521&stockCode=000521&announcementId=1216907443&announcementTime=2023-05-25%2017:23 |
| May 31,2023,June 1, 2023 | #1 , #2 reference room of the administrative center of the Company | Field research | Institute | Huaxi Securities, Jiashe Fund,Sinolink Securities, Wanjia Fund,Amundi BOC Wealth Management, Loyal Valley Capital,Yangpei Investment, Junlong Life, Yongxing Securities, CITIC Securities, Huaan Securities, Shengyu Investment Southwest Securities, Frankin Templeton Sealand Fund Managment | Operation condition of the Company | http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&orgId=gssz0000521&stockCode=000521&announcementId=1216966650&announcementTime=2023-06-01%2018:03 |
| June 6,2023 | No.1 Meeting Room, Zhongshan Changhong | Field research | Institute | China Securities, CINDA Fund | Operation condition of the Company | http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&orgId=gssz0000521&stockCode=000521&announcementId=1217011964&announcementTime=2023-06-07%2017:47 |
| June 7,2023 | A15 Meeting Room Changhong Trade Center | Field research | Institute | Jiashi Fund, Guosheng Securities | Operation condition of the Company | http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&orgId=gssz0000521&stockCode=000521&announcementId=1217022748&announcementTime=2023-06-08%2017:57 |
| June 12,2023 | #1 reference room of the administrative | Online platform for | Institute | Xinhua Fund, Huaxi Securities | Operation condition of the Company | http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&orgId=gssz0000521&stockCode=000521&announcementId=1217054282&a |
| center of the Company | online communication | nnouncementTime=2023-06-13%2019:05 | ||||
| June 13,2023 | #2 , #3 reference room of the administrative center of the Company | Online platform for online communication | Institute | Xinhua Fund, Huaxi Securities,UBS,Industry Securities, China Universal Asset Mangement, Huaan Fund,CICC Asset Management, Jiashi Fund, Cinda Fund,Southwest Securities, Guosheng Securities, Pengyang Securities, Boshi Fund | Operation condition of the Company | http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&orgId=gssz0000521&stockCode=000521&announcementId=1217066302&announcementTime=2023-06-14%2017:53 |
| June 15,2023 | #2 reference room of the administrative center of the Company | Online platform for online communication | Institute | PICC Asset, Taikang Asset,China Securities | Operation condition of the Company | http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&orgId=gssz0000521&stockCode=000521&announcementId=1217073900&announcementTime=2023-06-15%2017:07 |
| June 27,2023,June 28,2023 | #1 reference room of the administrative center of the Company | Online platform for online communication | Institute | Boshi Fund,China Merchants Fund, Cinda Fund, Haitong Appliance | Operation condition of the Company | http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&orgId=gssz0000521&stockCode=000521&announcementId=1217154961&announcementTime=2023-06-28%2017:49 |
| August 21, 2023,August 22,2023 | #3 reference room of the administrative center of the Company | Online platform for online communicati | Institute | Shenwan Hongyuan Securities, Guosheng Securities, Southwest Securities, Fuguo Fund, | Operation condition of the Company | http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&orgId=gssz0000521&stockCode=000521&announcementId=1217606538&announcementTime=2023-08-22%2018:03 |
| on | Guangfa Fund, Huaan Fund, Jiashi Fund, BOCOM Schroders, Zhong Ou Fund, Rongtong Fund, Taikang Fund,Great wall Fund, E fund,China Merchants Fund,ICBC Fund, Huatai Pinebridge Investment, Xinhua Fund, Cinda Fund, Dacheng Fund, Southern Fund,Lion Fund, Pengyang Fund, Chongshan Investment, Chunhou Fund, Donghai Fund,Founder Asset Management, China Everbright Asset Management,Guolian Fund, Hotland Innovation Asset Management,Mirae Asset,Huaxi Securities, Huian Fund, Jinying Fund, Minghe Investment, Pingan Pension,Pingan Asset Management ,Xuanlu Investment, Winsure |
| Capital, Changjiang Pension, loyal Valley Capital, Zhonghui Life, Zhongtai Asset Management, CITIC Asset Management, Bank of China Investment Management,Maxwealth Fund, China Universal Asset Mangement, Guotai Fund, Hongde Fund, Taikang Pension,BXRF, Changxin Fund | ||||||
| August 29,2023 | #4 reference room of the administrative center of the Company | Online platform for online communication | Institute | China Universal Asset Mangement | Operation condition of the Company | http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&orgId=gssz0000521&stockCode=000521&announcementId=1217694174&announcementTime=2023-08-29%2017:35 |
| September 14,2023 | #2 reference room of the administrative center of the Company | Online platform for online communication | Institute | Xingtai Investment, Yangjiao Fund, CMS | Operation condition of the Company | http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&orgId=gssz0000521&stockCode=000521&announcementId=1217859735&announcementTime=2023-09-14%2019:17 |
| September 15,2023 | #1 reference room of the administrative center of the Company | Online platform for online communication | Institute | Haitong Fund,Tebon Fund | Operation condition of the Company | http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&orgId=gssz0000521&stockCode=000521&announcementId=1217871475&announcementTime=2023-09-15%2017:57 |
| September 27,2023 | #4 reference room of the administrative center of the Company | Online platform for online communication | Institute | Guangfa Fund, Gousheng Securities | Operation condition of the Company | http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&orgId=gssz0000521&stockCode=000521&announcementId=1217970679&announcementTime=2023-09-27%2018:41 |
| October 25,2023 | #3 reference room of the administrative center of the Company | Online platform for online communication | Institute | Jiashi Fund | Operation condition of the Company | http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&orgId=gssz0000521&stockCode=000521&announcementId=1218151133&announcementTime=2023-10-25%2018:51 |
| October 26,2023 | #1 reference room of the administrative center of the Company | Online platform for online communication | Institute | Huatai Borui Fund, Shenwan Securities | Operation condition of the Company | http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&orgId=gssz0000521&stockCode=000521&announcementId=1218168881&announcementTime=2023-10-26%2018:57 |
| October 30,2023 | #2 reference room of the administrative center of the Company | Online platform for online communication | Institute | Xinhua Fund, J P Morgan Asset Management, China Merchants Fund, Fuguo Fund, Jiashi Fund,Oriental Alpha Fund, Huaan Fund, UG Fund, Zhongtai Securities, Shenwan Securities, Tianfeng Securities | Operation condition of the Company | http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&orgId=gssz0000521&stockCode=000521&announcementId=1218203763&announcementTime=2023-10-30%2019:23 |
| November 15,2023 | #2 reference room of the administrative center of the Company | Online platform for online communicati | Institute | Bocom Schrodenrs Fund, Jiashi Fund, Zhong Ou Fund Guosheng Securities | Operation condition of the Company | http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&orgId=gssz0000521&stockCode=000521&announcementId=1218292412&announcementTime=2023-11-09%2018:31 |
| on | ||||||
| November 15,2023 | #2 reference room of the administrative center of the Company | Online platform for online communication | Institute | Southern Fund, Huatai Bairui Fund , Guosheng Securities | Operation condition of the Company | http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&orgId=gssz0000521&stockCode=000521&announcementId=1218351774&announcementTime=2023-11-15%2017:59 |
| December 12,2023 | #2 reference room of the administrative center of the Company | Field research | Institute | Huaan Fund, ABC-CA Fund Management ,China Fund | Operation condition of the Company | http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&orgId=gssz0000521&stockCode=000521&announcementId=1218593063&announcementTime=2023-12-12%2018:17 |
| December 13,2023 | #2 reference room of the administrative center of the Company | Online platform for online communication | Institute | Guangfa Fund, Zhongtai Securities | Operation condition of the Company | http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&orgId=gssz0000521&stockCode=000521&announcementId=1218606177&announcementTime=2023-12-13%2017:31 |
| December 22,2023 | #1 reference room of the administrative center of the Company | Online platform for online communication | Institute | Guotai Fund, BOSC Asset, Juming Investment, CICC Asset Management, Penghua Fund, Dongwu Fund, Zhongtai Securities, Huaxi Securities | Operation condition of the Company | http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&orgId=gssz0000521&stockCode=000521&announcementId=1218703132&announcementTime=2023-12-22%2016:55 |
XIII Implementation of the Action Plan for "Double Improvement of Quality and Return"Has the company disclosed an action plan for "dual improvement of quality and return".
□ Yes √ No
IV. Corporate Governance
I. Corporate governance of the Company(i) Overview of the corporate governanceIn strict compliance with the Company Law, Securities Law, Governance Principles of Listed Company issued bythe CSRC, the Rules Governing the Listing of Stocks on Shenzhen Stock Exchange and Shenzhen Stock ExchangeSelf-Regulatory Guidelines No.1- Standardized Operation of the Listed Companies on main Board of SSE, theCompany continued to construct and perfect its governance structure, thereby forming its decision-making,supervision and operation management organization with general meeting, the board of directors, the board ofsupervisors and operation management as the major structure. The general meeting, board of directors, board ofsupervisors and operation management of the Company has definite terms of reference, which can ensure aneffective balance, scientific decision-making process and coordinative operation, laying firm foundation for makingdecisions relating to the Company’s continuous, steady and healthy development.During the reporting period, the actual situation of corporate governance has been in line with the requirements ofrelevant state laws and regulations, and regulatory documents relevant to governance of listed companies issued byChina Securities Regulatory Commission and Shenzhen Stock Exchange.During the reporting period, the company revised and promulgated the Articles of Association, Rules of Procedurefor the General Meeting of Shareholders, Rules of Procedure of the Board of Directors and Rules of Procedure forthe Board of Supervisors, which further improved the standard operation and governance level of the Company.The overall situation of corporate governance meets the requirements of relevant national laws and regulations, andregulatory documents on corporate governance of listed companies issued by China Securities RegulatoryCommission and Shenzhen Stock Exchange.
1. Shareholders and general meeting
The Company standardized the procedures concerning convening, holding and voting of general meeting in strictcompliance with the Articles of Association and Rules of Procedure of General Meeting. All shareholders, especiallythe minority shareholders, were equally treated to ensure all shareholders shall rank equal status and can fullyexercise their right. During the reporting period, the Company convened 4 shareholders general meetings. Inaddition to convening general meeting in forms of site conference, the Company offered convenience forshareholders to present general meeting via network voting which was safe, economic and convenient. At the sametime, all the matters submitted to the Company’s general meeting of shareholders should count the votes of the smalland medium investors separately, and the results of the vote count should be disclosed timely so as to effectivelyprotect the rights and interests of small and medium investors and ensure that all shareholders, especially the smalland medium shareholders, fully exercise their rights.
2. The Company and controlling shareholders
The Company has independent business and independent management capability. The Company and its controllingshareholders owe independent business, personnel, assets, organs and finance. During the period, controllingshareholder abide by requirement of Article of Association and Management System of Related Transactions,strictly regulate their behaviors, and no controlling shareholder has directly or indirectly intervened in theCompany’s policy-making and business activities beyond the general meeting of stockholders, no capital or assetsof the Company occupied by controlling shareholder and its affiliates either.
3. The directors and board of directors
The company strictly convenes and convenes the board of directors in accordance with the provisions of the articlesof association and the rules of procedure of the board of directors. The voting and information disclosure proceduresof the board of directors comply with relevant regulations. All directors of the company are able to carry out theirwork in accordance with the rules of procedure of the board of directors and the independent director system, attendthe board of directors and shareholders' meetings seriously, exercise their powers in accordance with the law, andfulfill their duties diligently and responsibly. The independent directors of the company strictly abide by the"Management Measures for Independent Directors of Listed Companies" and the "Independent Director System"of the China Securities Regulatory Commission, maintain sufficient independence in their work, and, with a serious,diligent, and loyal work attitude, based on an independent and prudent position, actively participate in companydecision-making through various forms such as attending meetings, on-site inspections, reviewing documents, andinquiring with relevant personnel. They carefully review various proposals, express pre approval opinions andindependent opinions on related party transactions, cash dividends, major issues, etc., fully play the role ofindependent directors in supervision and balance, and effectively safeguard the interests of the company and allshareholders, especially small and medium-sized shareholders. The strategy committee, compensation andassessment committee, audit committee, nomination committee, and ESG management committee under thecompany's board of directors are five specialized committees. According to the corresponding implementation rulesof each committee, they are responsible for discussing, making decisions, supervising, and evaluating major workmatters of the company, playing an important role in scientific decision-making, improving decision-makingefficiency and quality for the board of directors..
4. Supervisors and board of supervisors
The Company convened and held meeting of supervisors in strict compliance with the Company Law and Articlesof Association, and the voting and information disclosure procedures of supervisors’ meeting complied with relevantrequirements. The tenth board of supervisors of the company has five supervisors, including two employeesupervisors, the number and constitution of the board of supervisors meet the requirements of laws and regulations.All supervisors of the company can earnestly perform their duties in accordance with the requirements of the Rulesof Procedure for the Board of Supervisors, supervise the decision-making procedures and resolutions of the boardof directors and the legal operation of the company, review the regular reports prepared by the board of directorsand put forward written review opinions, and effectively supervise and express independent opinions on thecompany's major events, related transactions, financial status, the legality and compliance of directors and seniorexecutives’ performance of duties by attending the general meeting of shareholders and the meeting of the board ofdirectors from the perspective of safeguarding the legitimate rights and interests of the company and shareholders.
5. The performance appraisal and incentive and constraint mechanism
According to the Articles of Association, the Board of Directors of the company will decide to appoint or dismissthe president, secretary of the Board of Directors and other senior management personnel of the company, anddecide on their remuneration, rewards and punishments; According to the nomination of the president, decide toappoint or dismiss senior management personnel such as the company's vice president and financial officer, anddecide on their remuneration, rewards and punishments. The performance evaluation of directors, supervisors,presidents and other senior management personnel shall be conducted by the Human Resources Department of thecompany on a daily basis, and by the Remuneration and Appraisal Committee of the company at the end of the year.The company has established and continuously improved fair and transparent performance evaluation standards andincentive and restraint mechanisms for directors, supervisors and senior management personnel. The appointmentof company managers is open and transparent, in line with the relevant provisions of laws and regulations.
6. The stakeholders
The Company fully respects and maintains the legitimate rights and interests of stakeholders; strengthencommunication and negotiation with each other, realizes the coordination and balance of interests for all partiesincluding society, shareholders, company and staff, pushes forward the sustainable, steady and harmoniousdevelopment of the Company together.In terms of safeguarding the interests of shareholders, the company treats allshareholders, especially the small and medium-sized shareholders equally, in strict accordance with relevantregulations, and ensures that all shareholders enjoy equal status and fully exercise their rights by regulating theconvening, holding and voting procedures of the general meeting of shareholders.In terms of maintaining employees' rights and interests, starting from the company's strategy and businessdevelopment, it has continuously promoted and improved talent mechanisms such as talent reserve, learning anddevelopment, career planning and guidance, whole-process performance management, and salary incentive system,regularly evaluated and continuously monitored employees' engagement, satisfaction level and corporate cultureevaluation index, continuously improved employees' concerns, given full play to employees' vitality, stimulatedemployees' potential, and realized employees' personal development goals while achieving organizational goals; Interms of safeguarding the interests of relevant parties, guided by the corporate values of "creating and sharingtogether", it has been committed to establishing a win-win cooperation model of common development and commongrowth with relevant parties.
7. About information disclosure and transparency
During the reporting period, the company strictly complied with relevant provisions of the Listing Rules ofShenzhen Stock Exchange and the company's Information Disclosure Management System, strengthened themanagement of information disclosure affairs, actively fulfilled its information disclosure obligations, anddesignated Securities Times, China Securities Journal, Hong Kong Commercial Daily and Juchao InformationWebsite（Juchao Website (www.cninfo.com.cn)）as the designated media for the company's information disclosure,implemented strict confidential procedures for material undisclosed inside information, and controlled the scope ofinformed personnel. The company earnestly fulfilled its obligations to disclose relevant information in a true,accurate, timely and complete manner, and ensured that all investors equally enjoy the right to know and otherlegitimate rights and interests.
8. Investor relations management
During the reporting period, the Company continued to well ensure investor relations management, deepencommunication and exchanges with investors, enhance investors' understanding and recognition of the company,and safeguard investors' legitimate rights and interests in accordance with the requirements of the Company'sInvestor Relations Management System and Reception and Promotion Work System. During the reporting period,the company communicated with investors through the "Hudongyi" platform of investor relations of Shenzhen StockExchange, fully listened to investors' opinions and suggestions, and earnestly protected the interests of small andmedium-sized investors; well ensured answering and replying investors' visits and calls, as well as receiving andreplying faxes and e-mails, and treated media reports with caution; In order to help investors further understand thecompany's operating performance and financial condition, the company organized the 2021 online performancebriefing and achieved good results, which helped investors to understand the listed companies morecomprehensively and enhanced the transparency of the company; It held the Anhui Investor Service Week ofShenzhen Stock Exchange - Entering the Listed Companies, which further broadened the communication channelsof investors, earnestly safeguarded the legitimate rights and interests of investors, and constantly promoted andimproved the management level of investor relations in the company.ii)Whether there are significant differences between the actual state of corporate governance and laws,administrative regulations and the provision with governance concerned for listed companies issued byCSRC
□Yes √ No
There are no significant differences between the actual state of corporate governance and laws, administrativeregulations and the provision with governance concerned for listed companies issued by CSRCII. Independence of the Company relative to controlling shareholder and the actual controller in ensuringthe Company’s assets, personnel, finance, organization and businessesThe Company totally separated in business, personnel, assets, institutions and financial aspects from SichuanChanghong (controlling shareholder) and actual controller State-owned Assets Supervision & AdministrationCommission of Mianyang Municipality, with independent business accounting, responsibility and risk andindependent business operation capability.
1. The business: the Company has an independent and complete business as well as operation ability, withspecialized procurement, production, technology, marketing, management, human resources and other departments.We autonomously manage and operate business on our own. While the management staff are independent fromcontrolling shareholders and their subordinate enterprises. The Company is free from interference by controllingshareholders and other affiliates, and there is no dependence on controlling shareholders and other affiliates.
2. The personnel: personnel, labor, personnel and salary of the Company are completely independent. President,vice president, person in charge of finance, Secretary of the board of directors and other senior managementpersonnel are working in the Company and receive salary, not receiving any remuneration and holding position ofany except directors, supervisors in the controlling shareholder and its subordinate enterprises.
3. Assets: the Company owns places of production and management independent from its controlling shareholder,
owns complete assets structure, independent production system, auxiliary production systems and supportingfacilities, land use rights, ownership of houses and other assets, and independent purchase and sales system. Noassets occupied by controlling shareholders and other affiliates.
4. Institutions: the Company established organization completely independent from controlling shareholders; thegeneral meeting, board of directors, board of supervisors and the internal organization are capable of takingindependent action, with no controlling shareholder intervention of corporation's decision-making behavior. TheCompany strengthen the power restriction system via general meeting, the Board, supervisory committee,independent directors and vary committees, formulated an effective structure for corporate governance.
5. Financial aspects: the Company set up independent financial management, and independent accounting systemand financial management system, independently setting up banking account and tax declaration.III. Horizontal competition
□ Applicable √ Not applicable
IV. In the report period, the Company held annual shareholders’ general meeting and extraordinaryshareholders’ general meeting(i) Annual Shareholders’ General Meeting in the report period
| Session of meeting | Type | Ratio of investor participation | Date | Date of disclosure | Index of disclosure |
| AGM of 2022 | AGM | 39.8034％ | April 25,2023 | April 26,2023 | Juchao Website www.cninfo.com.cn( Announcement No.:2023-030） |
| First Extraordinary General Meeting of 2023 | Extraordinary General Meeting | 36.9723％ | May 10,2023 | May 11,2023 | Juchao Website www.cninfo.com.cn( Announcement No.:2023-033） |
| Second Extraordinary General Meeting of 2023 | Extraordinary General Meeting | 34.7820% | November 3,2023 | November 4,2023 | Juchao Website www.cninfo.com.cn( Announcement No.:2023-065） |
| Third Extraordinary General Meeting of 2023 | Extraordinary General Meeting | 35.2717% | December 21,2023 | December 22,2023 | Juchao Website www.cninfo.com.cn( Announcement No.:2023-080） |
(ii) Request for extraordinary general meeting by preferred stockholders whose voting rights restore
□ Applicable √ Not applicable
V. Directors, supervisors and senior officers(i) Basic information
| Name | Title | Working status | Sex | Age | Start dated of office term | End date of office term | Shares held at period-begin (share) | Number of shares increased in this period (share) | Number of shares decreased in this period (share) | Other changes (share) | Shares held at period-end (share) | Reasons for increase or decrease of shares |
| Wu Dinggang | Chairman | In office | Male | 51 | July 3,2014 | October 12,2023 | 570,500 | 0 | 0 | 0 | 570,500 | Not applicable |
| Zhong Ming | Director, President | In office | Male | 51 | December 30,2013 | October 12,2023 | 236,175 | 0 | 0 | 0 | 236,175 | Not applicable |
| Zhao Qilin | Director | In office | Male | 48 | December 23,2021 | October 12,2023 | 0 | 0 | 0 | 0 | 0 | Not applicable |
| Yong Fengshan | Director | In office | Male | 55 | September 12,2017 | October 12,2023 | 0 | 0 | 0 | 0 | 0 | Not applicable |
| Hong yuanjia | Independent director | In office | Male | 48 | October 12,2020 | October 12,2023 | 0 | 0 | 0 | 0 | 0 | Not applicable |
| Mou Wen | Independent director | In office | Female | 57 | October 12,2020 | October 12,2023 | 0 | 0 | 0 | 0 | 0 | Not applicable |
| Zhao Gang | Independent director | In office | Male | 45 | October 12,2020 | October 12,2023 | 0 | 0 | 0 | 0 | 0 | Not applicable |
| Kou Huameng | Director, Deputy president | In office | Male | 54 | July 3,2014 | October 12,2023 | 0 | 0 | 0 | 0 | 0 | Not applicable |
| Hu Zhaogui | Director, Deputy president | In office | Male | 49 | June 21,2018 | October 12,2023 | 178,050 | 0 | 0 | 0 | 178,050 | Not applicable |
| Shao Min | Chairman of | In office | Male | 41 | September 12,2017 | October 12,2023 | 0 | 0 | 0 | 0 | 0 | Not applicable |
| Supervisory | ||||||||||||
| He Xintan | Supervisor | In office | Male | 43 | September 12,2017 | October 12,2023 | 0 | 0 | 0 | 0 | 0 | Not applicable |
| Huang Hong | Supervisor | In office | Female | 53 | September 12,2017 | October 12,2023 | 0 | 0 | 0 | 0 | 0 | Not applicable |
| Ji Ge | Staff supervisor | In office | Female | 42 | December 25,2017 | October 12,2023 | 0 | 0 | 0 | 0 | 0 | Not applicable |
| Sun Hongying | Staff supervisor | In office | Female | 52 | March 30,2021 | October 12,2023 | 0 | 0 | 0 | 0 | 0 | Not applicable |
| Huang Danian | Deputy president | In office | Male | 54 | September 12,2017 | October 12,2023 | 356,450 | 0 | 0 | 0 | 356,450 | Not applicable |
| Tang Youdao | Deputy president | In office | Male | 53 | March 28,2021 | October 12,2023 | 0 | 800,000 | 0 | 0 | 800,000 | Centralized bidding trading way to increase holdings |
| Pang Haitao | CFO (person in charge of finance) | In office | Male | 48 | October 25,2017 | October 12,2023 | 0 | 0 | 0 | 0 | 0 | Not applicable |
| Li Xia | Secretary of the Board | In office | Female | 43 | May 22,2009 | October 12,2023 | 414,600 | 0 | 0 | 0 | 414,600 | Not applicable |
| Liu Hongwei | Executive Deputy president | Office leaving注2 | Male | 60 | June 20,2011 | May 25,2023 | 1,689,893 | 0 | 0 | 0 | 1,689,893 | Not applicable |
| Total | -- | -- | -- | -- | -- | -- | 3,445,668 | 800,000 | 0 | 0 | 4,245,668 | -- |
Note 1: The term of office of the Tenth Board of Directors and the Board of Supervisors of the Company expires on October 12, 2023. In view of the fact that thenomination of candidates for the new Board of Directors and the Board of Supervisors of the Company is still in progress, in order to ensure the continuity and stability
of the work of the Board of Directors and the Board of Supervisors of the Company, the current Board of Directors and the Board of Supervisors of the Company willcontinue to perform their corresponding obligations and responsibilities before the completion of the re-election without adversely affecting the continuity and stabilityof the related work of the Board of Directors of the Company. The Company is actively promoting the re-election of the Board of Directors and the Board of Supervisors,and will fulfill its information disclosure obligations in time.Note 2: Mr. Liu Hongwei retired on January 12, 2024 due to his retirement age, and is no longer holding any position in the Company and its subsidiaries.
1. During the reporting period, whether there was any departure of directors and supervisorsand dismissal of Senior Officers
√Yes□No
On May 25, 2023, Mr. Liu Hongwei, Executive Vice President of the Company, resigned as theexecutive vice president of the Company for personal reasons. On January 12, 2024, Mr. LiuHongwei completed the retirement formalities because his retirement age was reached, and did nothold any position in the Company and its
2. Changes of directors, supervisors and senior executives
√Applicable□Not applicable
| Name | Title | Types | Date | Reason |
| Liu Hongwei | Executive vice president | Dimission | May 25,2023 | Due to personal reasons, he appoint to resign from his position as executive vice president of the company |
(ii) Post-holding
1. Professional background, major working experience and present main responsibilities inCompany of directors, supervisors and senior executive at the present
(1) Wu Dinggang, male, the Han nationality from Suining, Sichuan Province, was born in March 1973,Member of CPC, owns bachelor degree, graduate from Tianjin University of Commerce China (TianjinUniversity of Commerce now), major in refrigeration equipment and cryogenic technique. He servedsuccessively as GM of Suining Sale Branch and Chengdu Sales Branch of Sichuan Changhong ElectricCo., LTD, director of Sichuan and Chongqing Marketing Management Department of SichuanChanghong Electric Co., LTD, deputy GM of Changhong Electronics (China) Marketing Co., GM ofmarket planning center of Changhong Multimedia Industry, director and GM of Le-Jia-Yi ChainManagement Co., Ltd., ZhongkeMeiling Cryogenic Technology Co., Ltd. director and GM of SichuanChangong Air Conditioner Co., Ltd and deputy president, president, deputy chairman and PartySecretary of the Company. Currently he serves as director, vice GM of Sichuan Changhong Electric Co.,Ltd., chairman of the Company; Chairman of Zhongshan Changhong Electric Co., LTD; Chairman ofSichuan Changhong Air-conditioner Co., Ltd. and Chairman of ZhongkeMeiling Cryogenic TechnologyCo., Ltd.
(2) Zhong Ming, male, the Han nationality from Meishan, Sichuan Province, was born in November1972, member of CPC, a senior engineer, doctoral degree, EMBA degree from University of Scienceand Technology of China, PhD degree in Engineering Thermophysics. He successively served as deputydirector of research institution of Sichuan Changhong Air-conditioner Co., Ltd., deputy GM of SichuanChanghong Air-conditioner Co., Ltd. and technical director of household appliance group of SichuanChanghong Electric Co., Ltd. He serves as director President and Party Secretary of the Companycurrently , Chairman of Zhongshan MeilingWulian Technology Co., Ltd., Director of SichuangChanghong Air-conditioning Co., Ltd., and Director of Zhongke Meiling Low Temperature Technology
Co., Ltd.
(3)Zhao Qilin, male, Han nationality, born in September 1975, graduated from Southwestern Universityof Finance and Economics with a bachelor's degree in rural finance, and served as accountant of thefinancial department, investment project manager, asset management manager of asset managementdepartment, manager of investment management department, and securities affairs representative ofSichuan Changhong Electric Co., Ltd.; financial manager of Sichuan Changhong Innovation InvestmentCo., Ltd.; chief financial officer and and joint company secretary of Changhong Jiahua Holdings Co.,Ltd.. He currently serves as secretary of the board, general counsel, office director of the board ofdirectors, and director of the asset management department of Sichuan Changhong Electric Co., Ltd.,director of Anjian Holdings Co., Ltd.,director of Sichuan Changhong Innovation Investment Co., Ltd..and the director of the Company.
(4) Mr. Yongfengshan, Han nationality, born in June 1968 in Dingyuan, Anhui, is a member of theCommunist Party of China, a senior accountant, with a university degree and a Master's degree inBusiness Administration. He has served as the Director of the Finance Department of Hefei CableFactory, the Director and Deputy Chief Accountant of the Finance Department of Hefei Meiling Co.,Ltd., the Deputy General Manager and Chief Accountant of Hefei Meiling Group Holding Co., Ltd., theParty Secretary, General Manager, and Chairman of Hefei Industrial Investment Holding Co., Ltd., andthe Party Secretary and Chairman of Hefei Industrial Investment Holding (Group) Co., Ltd. Currentpositions include Secretary of the Party Committee and Chairman of Hefei Construction InvestmentHoldings (Group) Co., Ltd., Chairman of Hefei Weixinnuo Technology Co., Ltd., Chairman of HefeiConstruction Investment Capital Management Co., Ltd., Director of Anhui Jianghuai Automobile Co.,Ltd., and Director of the Company.
(5) Hong yuanjia, male, Han nationality, born in February 1975, Shantou, Guangdong, holds a masterdegree, graduated from Shanghai University of Finance and Economics majoring in internationalbusiness management, and is Fudan University MPAcc (Master of Accounting), CPA, InternationalAccountant (AIA), intermediate accountant, and intermediate economist. He once served as the foreigncurrency payable supervisor and investment supervisor of China Eastern Airlines Co., Ltd., the deputymanager of the financial department of the Shanghai Representative Office of SanchengHongji (HongKong) Co., Ltd., the accounting manager of General Electric Lighting Co., Ltd., the accounting managerof General Electric Industrial Supply Co., Ltd., and Chief Financial Officer of Lingji Electronics(General Electrical Industry System Power Supply). He is currently the Chief Financial Officer of AsiaPacific Region of Yiluo Technology (Shanghai) Co., Ltd. and an independent director of the Company.
(6) Mou Wen, female, Han nationality, born in September 1965, Hengshan, Hunan, holds a master'sdegree, an accountant, and holds a master's degree in business management from Sichuan University.She previously served as a lecturer in the School of Business Administration of Sichuan University, anAssociate Professor of Accounting in the School of Business Administration of Sichuan University, anindependent director of Tibet Mineral Development Co., Ltd., Sichuan Jinlu Group Co., Ltd., HuayiCompressor Co., Ltd., Jinhui Liquor Co., Ltd., Sichuan Teway Food Co., Ltd., and Hebei Baoli
Engineering Equipment Group Co., Ltd., a member of Investment Decision Advisory Committee ofSichuan Chuanjiao Road and Bridge Co., Ltd., and financial consultant of Sichuan Daka Electric Co.,Ltd., etc. She is currently Associate Professor and Master Supervisor of Business School of SichuanUniversity, and an independent director of Chengdu Guibao Science and Technology Co., Ltd.,MianyangFulin Precision Machinery Co., Ltd., Sichuan Joyou Digital Technology Co., Ltd., TibetMineral Development Co., Ltd., and an independent director of the Company.
(7) Zhao Gang, male, Han nationality, born in April 1977, Peixian, Jiangsu Province, is a member of theCommunist Party of China, holds a doctoral degree, graduated from the University of Science andTechnology of China majoring in power engineering and thermophysics. He once served as a postdoctorate and an associate professor in the Department of Mechanics and Mechanical Engineering of theUniversity of Science and Technology of China, a professor of orbital systems in the Department ofElectronic Science and Technology, a special researcher for foreigners in the Japan Society for thePromotion of Science, School of Engineering, Kyushu University, Japan, and a senior research scholarin the Department of Mechanical Engineering at the University of Washington. He is currently theexecutive director, professor and doctoral supervisor of the Department of Electronic Science andTechnology of the University of Science and Technology of China, the deputy director of the Anhui LifeResources Conservation and Artificial Organ Engineering Technology Research Center, a part-timeprofessor of the Department of Mechanical Engineering of the University of Washington, and anindependent director of the Company.
(8) Kou Huameng, male, the Han nationality from Yanting, Sichuan Province, was born in February1970, Member of CPC, master degree candidate, EMBA graduate from UESTC. He served successivelyas deputy director of production office of Sichuan Changhong Electric Co., LTD, director of GuangxiMarketing management Committee, director of Fujian-Jiangxi Marketing Management, GeneralManager of Changhong Audiovisual Company and director and GM of Guangdong Changhong DigitalTechnology Co., Ltd.; Sichuan Changhong Electric Co., Ltd, director of development managementdepartment of Sichuan Changhong Electric Co., Ltd., and director of ChanghongHuayi Compressor Co.,Ltd.; now he serves as director and deputy president of the Company.
(9) Hu Zhaogui, male, the Han nationality, born in Feixi Hefei in October 1974, a member of theCommunist Party of China, holds a master’s degree, graduated from Chongqing University as a masterof business administration. He has served successively as the head of marketing and sales departmentstationed abroad of Hefei Meiling Co., Ltd., assistant president and general manager of the freezer andwashing machine business division, and general manager of the domestic marketing division. He iscurrently the director and vice president of the Company and the general manager of Sichuan ChanghongAir Conditioner Co., Ltd.
(10) Shao Min, male, Han nationality, was born in Linyi, Shandong in March 1983, and earned abachelor’s degree in accounting major from Xi’an Jiaotong University. He joined in work in July 2004,and ever served as the accountant and finance manager of the branch office of Sichuan ChanghongElectric Co., Ltd., the financial director of finance department, the project manager of asset management
department, manager of Assets Operation Division of Assets Management Dept, deputy director anddirector of the Assets Management Dept.of Sichuan Changhong Electric Co., Ltd. He currently servesas the head of Capital Operation Dept.of Sichuan Changhong Electric Co., Ltd., director ofChanghongHuayi Compressor Co., Ltd., director of Sichuan Changhong New Energy Technology Co.,Ltd., and the chairman of the Board of Supervisors of the Company.
(11) He Xintan, male, Han nationality, was born in Xiayi, Henan in April 1980, a member of theCommunist Party of China, an economist, and earned a master’s degree in management science andengineering from Xi’an Jiaotong University. He joined in work in July 2002, and successively took theposts of the operations management director of operation management department and the manager ofgeneral management office of Sichuan Changhong Electric Co., Ltd., the deputy director of developmentand management department of Sichuan Changhong Electric Co., Ltd., and a director ofChanghongHuayi Compressor Co., Ltd.Currently he serves as assistant to General Manager of SichuanChanghong Electric Co., Ltd.and a supervisor of the Company.
(12) Huang Hong, female, Han nationality, was born in Shehong, Sichuan in June 1970, a member ofthe Communist Party of China, a master degree holder, graduated from the University of Glasgow as aMBA, and a senior auditor. She joined in work in July 1992, and ever served as the financial director offinance department, the audit manager, marketing audit director, and audit chief of auditing departmentof Sichuan Changhong Electric Co., Ltd. He currently serves as the deputy director of auditingdepartment and thedeputy director of labor union audit committee of Sichuan Changhong Electric Co.,Ltd., and a supervisor of the Company.
(13) Ji Ge, female, Han nationality, was born in Nanyang, Henan Province in January 1982, a memberof the Communist Party of China, and earned a bachelor’s degree in law from Hunan University and amaster’s degree from Anhui University. She joined Hefei Meiling Co., Ltd. in July 2005 and once servedas the legal specialist of legal department, the sponsor of legal affairs, and the intellectual propertydirector of the legal department of the Company. She currently serves as head of director office and riskcontrol compliance dept and staff supervisor of the Company.
(14)Sun Hongying, female, Han nationality, native of Tongcheng, Anhui, born in March 1972, memberof the Communist Party of China, master degree, intermediate accountant, graduated from HefeiUniversity of Technology with a major in accounting. She successively served as deputy director of thecost center, director of the financial department of the refrigerator business division, and deputy directorof the financial management department of Changhong Meiling Co., Ltd.. She currently serves asemployee supervisor and deputy director of the refrigerator and freezer division of the finance andeconomics department of the Company.
(15) Huang Danian, male, Han nationality, was born in Huaining, Anhui in November 1969, a memberof the Communist Party of China, a senior engineer, and a master degree holder. He once served as thelogistics director and the deputy general manager, the director of the human resources department, thedirector of the comprehensive planning department, head of budget management dept. , and the assistantto the general manager of Sales Company of Hefei Meiling Co., Ltd. He is now the vice president of the
Company.
(16)Tang Youdao, male, Han nationality, was born in Xuancheng, Anhui in July 1970, a undergraduatedegree and graduated from Wuhan University of Technology, majoring in industrial managementengineering. He hold jobs successively as overseas marketing manager, head of marketing dept., headof overseas marketing dept. and general manager of overseas business division under the name of HefeiMeiling Co., Ltd. Currently vice president and general manager of overseas refrigerator/washingmachine division of the Company.
(17) Pang Haitao, male, Han nationality, was born in Qionghai, Hainan in May 1975, a member of theCommunist Party of China, a senior accountant, a senior political engineer, and a bachelor degree holder,and earned the EMBA degree from Jiangxi University of Finance and Economics. He used to be amember of the finance department, the director of related transactions and the director of capitaloperations of Sichuan Changhong Electric Co., Ltd., the chief of finance office of GuangdongChanghong Electronics Co., Ltd., the director ofgeneral ledger, the head of general management office,and the head of general ledger management office of the finance department of Sichuan ChanghongElectric Co., Ltd., the deputy general manager and chief financial officer of Sichuan ChanghongDevelopment Co., Ltd., the deputy general manager and chief accountant of Huayi Compressor Co., Ltd.Currently he is the chief financial officer (person in charge of finance) of the Company.
(18) Li Xia,female, the Han nationality from Qionglai, Sichuan Province, was born in October 1980,Member of CPC and Intermediate Accountant with Master Degree. She graduated from AccountingDepartment of Sichuan University Business and Management School. She ever was Project Manager inFinancing & Acquisition Office of Asset Management Department and Business Executive in BoardOffice of Sichuan Changhong Electronic Co., Ltd. she took the posts of Deputy GM and FinancialSupervisor of Sichuan Changhong Innovation Investment Co., Ltd., and chairman of supervisorycommittee ofZhongkeMeiling Cryogenic Technology Co., Ltd. She is the Secretary of the Board, deputysecretary of the Party, secretary of discipline inspection commission and general counselof the Companyrecently.
（19） Liu Hongwei, Male, Chinese American, bored in May 1963, Doctor of Applied Mechanics fromLehigh University, graduate from department of mechanical engineering, Tsinghua University. Heserved successively in Kulicke and Soffa Industries, Pennsylvania; Tessera Technology Corporation,Califonia; serves technical and management post in Intel Corporation in Silicon Velleg. He joints theHefei Meiling Co., Ltd. in 2007, served as the Executive Vice President of the Company. He resigned asthe Executive Vice President of the Company on May 25, 2023. On January 12, 2024, Mr. Liu Hongweicompleted the retirement formalities because his retirement age was reached, and did not hold anyposition in the Company and its subsidiaries.
2. Post-holding in shareholder’s unit
√ Applicable □ Not applicable
| Name | Shareholder’s unit | Title | Start date of office term | End date of office term | Drawing remuneration and allowance from shareholder’s unit (Y/N) |
| Wu Dinggang | Sichuan Changhong Electric Co., Ltd. | Deputy GM | 2023.12.29 | 2026.12.29 | Yes |
| Yong Fengshan | Hefei Industry Investment Holding (Group) Co., Ltd. | Party Secretary, Chairman | 2015.02 | 2024.01.19 | Yes |
| ZhaiQilin | Sichuan Changhong Electric Co., Ltd. | Secretary of the Board of Directors | 2023.12.29 | 2026.12.29 | Yes |
| Chief Compliance Officer | 2023.12.29 | 2026.12.29 | No | ||
| General counsel | 2022.02.14 | - | No | ||
| Director of the office of the Board of Directors | 2021.03.29 | - | No | ||
| Director of the management office of ESG | 2023.01.09 | - | No | ||
| The Minister of the General Management Department | 2024.01.26 | - | No | ||
| Post-holding in shareholder’s unit | N/A | ||||
3. Post-holding in other unit
√ Applicable □ Not applicable
| Name | Other unit | Title | Start date of office term | End date of office term | Drawing remuneration and allowance from other unit (Y/N) |
| Wu Dinggang | Sichuan Zhiyijia Network Technology Co., Ltd. | Chairman | 2021.01.25 | - | No |
| Lejiayi Chain Management Co., Ltd. | Chairman | 2019.04.25 | - | No | |
| Sichuan Kuaiyidian Electrical Service Chain Co., Ltd. | Chairman | 2019.06.10 | - | No | |
| Mianyang Kuaiyidian Electric Appliance Service Chain Co., Ltd. | Chairman | 2022.11.04 | - | No | |
| Zhong Ming | Sichuan Kuaiyidian Electric Appliance Service Chain Co., Ltd. | Director | 2022.03.15 | - | No |
| Yong Fengshan | Hefei Venture Capital Guidance Fund Co., Ltd. | Chairman | 2024.01 | - | Yes |
| Hefei Weixinnuo Technology Co., Ltd. | Chairman | 2022.01 | - | No | |
| Anhui Jianghuai Automobile Group Co., Ltd | Director | 2018.07.20 | 2025.05.30 | ||
| Hefei Jiantou Capital Management Co., Ltd | Chairman | 2024.03 | |||
| Zhao Qilin | Sichuan Changhong Innovation Investment Co., Ltd. | Director | 2021.01.21 | - | No |
| WIDEMIRACLELIMITED | Director | 2014.07.14 | - | No |
| Ganghong Industrial Co., Ltd. | Director | 2013.06.18 | - | No | |
| SUFFICIENTVALUEGROUPLIMITED | Director | 2013.06.18 | - | No | |
| ChanghongJiahua (Hong Kong) Information Products Co., Ltd. | Director | 2021.01.08 | - | No | |
| Anjian Holdings Co., Ltd. | Director | 2012.01.19 | - | No | |
| Guangzhou Huanwang Technology Co., Ltd. | Director | 2022.05.23 | No | ||
| Changhong Jiahua Holdings Co., Ltd. | Executive director | 2023.03.17 | - | No | |
| Mianyang Changhong Technology Co., Ltd. | Chairman | 2023.08.15 | - | No | |
| Hu Zhaogui | Lejiayi Chain Management Co., Ltd. | Director | 2018.01.23 | - | No |
| Sichuan Zhiyijia Network Technology Co., Ltd. | Director | 2019.07.25 | - | No | |
| Hong Yuan Ground Energy Heat Tech. Co., Ltd. | Chairman | 2018.03.21 | - | No | |
| Sichuan TianyouGuigu Technology Co., Ltd. | Director | 2018.01.16 | - | No | |
| Chengdu Guigu Environmental Tech. Co., Ltd. | Director | 2018.06.30 | - | No | |
| Hong Yuanjia | Yiluo Technology( Shanghai) Co., Ltd. | CFO of Asia pacific | 2014.06 | - | Yes |
| Mou Wen | Business School of Sichuan University | Associate professor, master tutor | 1995.02 | - | Yes |
| Sichuan Junyi Digital Technology Co., Ltd. | Independent director | 2021.07.01 | 2024.06.30 | Yes | |
| Tibet Mining Development Co., Ltd. | Independent director | 2021.03.09 | 2024.03.08 | Yes | |
| Zhao Gang | University of Science and Technology of China | Director, Professor, Doctoral Supervisor | 2011.04 | - | Yes |
| Shao Min | Sichuan Changhong Electronics Holding Group Co., Ltd. | Deputy GM | 2023.12.21 | 2026.12.21 | Yes |
| ChanghongHuayi Compressor Co., Ltd. | Director | 2021.02.25 | 2024.05.12 | No | |
| Sichuan Changhong New Energy Technology Co., Ltd. | Director | 2018.05.10 | 2024.12.19 | No | |
| Sichuan Changhong Gerun Environmental protection Technology Co., Ltd. | Director | 2018.01.01 | 2025.02.09 | No | |
| He Xintan | Zhongjiu Flash Medical Technology Co., Ltd | Director and General Manager | 2023.03 | - | Yes |
| Huang Hong | Sichuan Changhong Electronics Holding Group Co., Ltd. | Deputy Director of Audit Department | 2011.09.16 | - | Yes |
| Pang Haitao | Hefei Xingmei Asset Management Co., Ltd. | Director | 2018.02.05 | - | No |
| Post-holding in other unit | N/A | ||||
4. Punishment of securities regulatory authority in recent three years to the company’s currentand outgoing directors, supervisors and senior management during the reporting period
□ Applicable √ Not applicable
(iii) Remuneration of directors, supervisors and senior executives
1. Decision-making, determine basis and actually payment of remuneration for directors,supervisors and senior executives
(1) Procedure for deciding remunerations of directors, supervisors and senior managementImplemented in line with laws, regulations and relevant rules of “Company Law”, “Article ofAssociation” and “Enforcement Regulation of Remuneration and Evaluation Committee of the Board”,
including:
Allowance plan of independent directors are implemented after deliberated in the Board and approvedin Shareholders’ General Meeting. Other directors and non-staff supervisors except independentdirectors are received no remuneration from the Company.
Remuneration of senior executives are deliberated and approved by the Board according to remunerationevaluation plan together with opinions of Remuneration and Evaluation Committee.The remuneration appraisal and payment for directors and senior executive of the Company for CurrentYear will disclose in the Annual Report after review without objection from Remuneration & AppraisalCommittee of the Board and submit to the BOD for Current Year.
(2) Bases on which remunerations of directors, supervisors and senior management are decidedAccording to the company's basic salary system, combined with the industry salary level and salaryorientation, following the salary management concept of "post value reflected and performance-oriented", giving full play to the incentive function of salary, closely combining employee compensationwith the company's overall performance, according to the company's performance management rules,the annual performance evaluation on the work of senior management personnel is carried out, and theperformance salary is cashed according to the performance evaluation results.
(3) Actual payment of remunerations of directors, supervisors and senior managementAllowance of the independent directors are paid by the standards approved in Annual Shareholders’General Meeting, other director, who serves as senior executive at the same time, and non-staffsupervisors except independent directors did not received remuneration from the Company;remunerations for senior executives of the Company are paid strictly by the unify remuneration valuationmechanism of the Company.Directors, supervisors and senior executives of the Company has 19 in total up to 31 December 2023,actually 13 person receiving remuneration from the Company, 2 staff supervisors are received theirremuneration by actual positions (non-supervisor post); furthermore, 3 independent directors arereceived the allowance monthly from the Company; the Company will pay remuneration to seniorexecutives in line with the performance appraisal by monthly, quarterly and annual.During the reporting period, the Company has established the executive compensation and performancemanagement program for the senior management of 2022 in accordance with the main scope, theresponsibilities, the importance of the management positions of the senior management, and thecompensation level of other relevant company and position, the program includes but not limited to thecompany's key performance indicator (KPI) and performance evaluation criteria, procedures and majorevaluation system; the major programs of the reward and punishment; review the performance of dutiesof the company's senior management and conduct the annual performance appraisal.
2. Remuneration for directors, supervisors and senior executives in reporting period
In RMB 10,000
| Name | Title | Sex | Age | Post status | Total | Whether |
| remuneration obtained from the Company (before taxes) | remuneration obtained from related party of the Company | |||||
| Wu Dinggang | Chairman | Male | 51 | In Office | 0 | Yes |
| Zhong Ming | Director, President | Male | 51 | In Office | 140.10 | No |
| Zhao Qilin | Director | Male | 48 | In Office | 0 | Yes |
| Yong Fengshan | Director | Male | 55 | In Office | 0 | Yes |
| Hong yuanjia | Independent director | Male | 48 | In Office | 11.9 | No |
| Mou Wen | Independent director | Female | 57 | In Office | 11.9 | No |
| Zhao Gang | Independent director | Male | 45 | In Office | 11.9 | No |
| Kou Huameng | Director, Deputy president | Male | 54 | In Office | 83.25 | No |
| Hu Zhaogui | Director, Deputy president | Male | 50 | In Office | 155.12 | No |
| Shao Min | Chairman of Supervisory | Male | 41 | In Office | 0 | Yes |
| He Xintan | Supervisor | Male | 43 | In Office | 0 | Yes |
| Huang Hong | Supervisor | Female | 53 | In Office | 0 | Yes |
| Ji Ge | Staff supervisor | Female | 42 | In Office | 47.98 | No |
| Sun Hongying | Staff supervisor | Female | 52 | In Office | 49.05 | No |
| Huang Danian | Deputy president | Male | 54 | In Office | 92.49 | No |
| Tang Youdao | Deputy president | Male | 53 | In Office | 90.88 | No |
| Pang Haitao | CFO (person in charge of finance) | Male | 48 | In Office | 93.78 | No |
| Li Xia | Secretary of the Board | Female | 43 | In Office | 85.22 | No |
| Liu Hongwei | Executive Deputy president | Male | 60 | Dimission | 20.19 | No |
| Total | -- | -- | -- | -- | 893.76 | -- |
OtherNote
□Applicable √Not applicable
VI. Responsibility performance of directors during the reporting period(i) The board of directors during the reporting period
| Session of meeting | Date of meeting | Disclosure date | Meeting resolutions |
| The 30th session of 10thBOD | January 16,2023 | Janupary 18,2023 | The Board of Directors reviewed and approved three proposals, namely, Proposal on the Company's Participation in the Establishment of Sichuan Hongyun Information Technology Venture Capital Fund and Related Transactions, Proposal on the Bad Debt Provision Accrued Individually for Receivables of Changhong RUBA Electric Appliance Co., Ltd. and Proposal on the Bad Debt Provision Accrued Individually for |
| Single Receivable of Gome System，for details, please refer to the "Resolution Notice of the 30th session of 10thBOD" (No. 2023-002) on the cninfo website (Juchao Website (www.cninfo.com.cn)). | |||
| The 31st session of 10thBOD | March 30,2023 | March 31,2023 | The Board of Directors reviewed and approved 21 proposals, including the Work Report of the Board of Directors in 2022, the Work Report of the President in 2022, the Annual Report and Summary of Annual Report in 2022，for details, please refer to the "Resolution Notice of the 31st session of 10thBOD" (No. 2023-011) on the cninfo website (Juchao Website (www.cninfo.com.cn)). |
| The 32nd session of 10thBOD | April 19,2023 | April 20,2023 | The Board of Directors reviewed and approved 14 proposals, including the Report on the First Quarter of 2023, the Proposal on Provision for Credit Impairment and the Proposal on Provision for Asset Impairment，for details, please refer to the "Resolution Notice of the 32nd session of 10thBOD" (No. 2023-023) on the cninfo website (Juchao Website (www.cninfo.com.cn)). |
| The 33rd session of 10thBOD | August 16,2023 | August 18,2023 | The Board of Directors reviewed and approved 11 proposals, including the Full Text and Summary of the Semi-annual Report in 2023, the Proposal on Provision for Credit Impairment and Proposal on Provision for Asset Impairment，for details, please refer to the "Resolution Notice of the 33rd session of 10thBOD" (No. 2023-040) on the cninfo website (Juchao Website (www.cninfo.com.cn)). |
| The 34th session of 10thBOD | September 7,2023 | September 8,2023 | he Board of Directors reviewed and approved 4 proposals, including the Proposal on Extension and Related Transactions of Sichuan Hongyun New Generation of Information Technology Venture Capital Fund Partnership (Limited Partnership) and the Proposal on Increasing the Daily Related Transactions in 2023，for details, please refer to the "Resolution Notice of the 34th session of 10thBOD" (No. 2023-044) on the cninfo website (Juchao Website (www.cninfo.com.cn)). |
| The 35th session of 10thBOD | October 16,2023 | October 18,2023 | he Board of Directors reviewed and approved 17 proposals, including the Proposal on Renewing the Financial Services Agreement and Related Transactions between the Company and Sichuan Changhong Group Finance Co., Ltd. and the Proposal on Continuous Risk Assessment of Sichuan Changhong Group Finance Co., Ltd.，for details, please refer to the "Resolution Notice of the 35th session of 10thBOD" (No. 2023-052) on the cninfo website (Juchao Website (www.cninfo.com.cn)). |
| The 36th session of 10thBOD | October 23,2023 | October 24,2023 | The Board of Directors reviewed and approved 5 proposals, including the Report on the Third Quarter of 2023, the Proposal on Provision for Credit Impairment and the Proposal on Provision for Asset Impairment，for details, please refer to the "Resolution Notice of the 36th session of 10thBOD" (No. 2023-060) on the cninfo website (Juchao Website (www.cninfo.com.cn)). |
| The 37th session of 10thBOD | December 4,2023 | December 5,2023 | The Board of Directors reviewed and approved 19 proposals, including the Proposal on Predicting Daily Related Transactions in 2024 and the Proposal on Predicting Continuous Related Transactions between the Company and Its Subsidiaries and Sichuan Changhong Group Finance Co., Ltd. in 2024，for details, please refer to the "Resolution Notice of the 37th session of 10thBOD" (No. 2023-066) on the cninfo website (Juchao Website (www.cninfo.com.cn)). |
| The 38th session of | December 18,2023 | December 19,2023 | The Board of Directors reviewed and approved 2 proposals, namely, the Proposal on Increasing the Daily Related Party Transactions in 2023 and the Proposal on |
| 10thBOD | Formulating the Company's Work System for the Secretary of the Board of Directors，for details, please refer to the "Resolution Notice of the 38th session of 10thBOD" (No. 2023-077) on the cninfo website (Juchao Website (www.cninfo.com.cn)). |
(ii) The attending of directors to Board meetings and shareholders general meeting
| The attending of directors | |||||||
| Director | Times of Board meeting supposed to attend in the report period | Times of present in person | Times of attending by communication | Times of entrusted presence | Times of Absence | Absent the Meeting for the second time in a row (Y/N) | Times of attending the shareholder general meeting |
| Wu Dinggang | 10 | 2 | 8 | 0 | 0 | No | 3 |
| Zhong Ming | 10 | 1 | 9 | 0 | 0 | No | 3 |
| Yong Fengshan | 10 | 0 | 10 | 0 | 0 | No | 0 |
| Kou Huameng | 10 | 1 | 9 | 0 | 0 | No | 4 |
| Zhao Qilin | 10 | 2 | 8 | 0 | 0 | No | 3 |
| Hu Zhaogui | 10 | 1 | 9 | 0 | 0 | No | 3 |
| Hong yuanjia | 10 | 2 | 8 | 0 | 0 | No | 3 |
| Mou Wen | 10 | 2 | 8 | 0 | 0 | No | 3 |
| Zhao Gang | 10 | 1 | 9 | 0 | 0 | No | 3 |
Explanation of absent the Board Meeting for the second time in a rowDuring the reporting period, none of the directors failed to attend two consecutive Board Meeting inperson.(iii) Objection for relevant events from directorsWhether directors come up with objection about company’s relevant matters or not
□ Yes √ No
Directors has no objections for relevant events in reporting period(iv) Other explanation about responsibility performance of directorsWhether the opinions from directors have been adopted or not
√ Yes □ No
During the reporting period, the directors of the company strictly followed the Company Law, theSecurities Law, the Listing Rules of Shenzhen Stock Exchange, and the Self-Discipline SupervisionGuidelines for Listed Companies of Shenzhen Stock Exchange No. 1 - Standardized Operation of MainBoard Listed Companies" and other laws and regulations, actively attended the company's boardmeetings and the company's general meeting of shareholders, performed duties conscientiously anddiligently, made prudent and scientific decisions on various matters reviewed by the company's boardmeetings, and all their professional suggestions on the company’s major decisions have been adopted .
VII. The special committees under the board during the reporting period
| Committee name | Members | Number of meetings held | Date of meeting | Meeting content | Important comments and suggestions made | Other performance of duties | Specific circumstances of the objection (if applicable) |
| Strategy Committee | Wu Dinggang, Zhong Ming, Yong Fengshan, Kou Huameng, Zhao Qilin, Hu Zhaogui, Zhao Gang | 2 | January 13,2023 | The reviewed 1 proposals, namely, Proposal on the Company's Participation in the Establishment of Sichuan Hongyun Information Technology Venture Capital Fund and Related Transactions | The proposal was deliberated and passed and agreed to be submitted to the board of directors of t | Not applicable | No |
| March 19,2022 | t reviewed and approved a total of one proposal, namely the Proposal on the Company's Development Plan in 2023 | The proposal was deliberated and passed and agreed to be submitted to the board of directors of t | Not applicable | No | |||
| Audit Committee | Hong Yuanjia, Mou Wen, Zhao Gang | 7 | January 12,2023 | Two proposals were deliberated, namely, the Company's 2022 Financial Accounting Statement and Internal Control Audit Schedule and the Company's 2022 Unaudited Financial Accounting Statement. | All proposals were deliberated and passed. | Not applicable | No |
| March 6,2023 | A total of 1 proposal was deliberated, namely the First Draft of the Audit of the Company's Financial Accounting Statements in 2022. | The proposal were deliberated and passed | Not applicable | No | |||
| March 30,2023 | Five proposals were deliberated, namely the Audited Financial Accounting Report of the Company in 2022, Audit Report on Internal Control in 2021, Summary Report on the Company Audit Work by ShineWing | All the proposals were deliberated and passed, and four proposals were agreed to be submitted to the Board of Directors for deliberation, namely, the Audited Financial Accounting Report of the Company in 2022, Audit Report on Internal Control in 2022, the Proposal on Renewing the Appointment of the | Not applicable | No |
| Certified Public Accountants in 2022, Proposal on Renewing the Appointment of the Financial Report, Internal Control Auditing Organization and Payment of Remuneration in 2023, and Proposal on the Company's Forward Foreign Exchange Fund Trading Business. | Financial Report, Internal Control Auditing Organization and Payment of Remuneration in 2023 and Proposal on the Company's Forward Foreign Exchange Fund Trading Business. | ||||||
| April 17,2023 | A total of 2 proposal was deliberated, namely the Financial Statement of the Company for the First Quarter of 2023. | The proposal was deliberated and passed and agreed to be submitted to the board of directors of t | Not applicable | No | |||
| August 6,2023 | A total of 1 proposal was deliberated, namely the Semi-annual Financial Report of the Company in 2023 | The proposal was deliberated and passed and agreed to be submitted to the board of directors of t | Not applicable | No | |||
| October 20,2023 | A total of 1 proposal was deliberated, namely the Financial Statement of the Company for the Third Quarter of 2023 | The proposal was deliberated and passed and agreed to be submitted to the board of directors of t | Not applicable | No | |||
| December 28,2023 | It reviewed and approved a total of one proposal, namely, the Proposal on the Company's Selection and Recruitment of Audit Service Accounting Firm for Annual Report from 2024 to 2026. | The proposal were deliberated and passed | Not applicable | No | |||
| Remuneration and Appraisal Committee | Wu Dinggang, Zhao Gang, Mou Wen, Hong Yuanjia | 2 | March 19,2023,December 25,2023 | It deliberated the remuneration assessment and payment of directors and senior management of the company in 2022. | It deliberated and passed the remuneration assessment of directors and senior management personnel and agreed to submit it to the Board of Directors of the company for deliberation. | Not applicable | No |
| Special meetings of independent directors | Hong Yuanjia, Mou Wen, Zhao Gang | 2 | December 1,2023 | A total of 2 proposal was deliberated, "Proposal on Expecting Daily Related Transactions in 2024", "Proposal on Expecting Continued Related Transactions between the Company and its Subsidiaries and Sichuan Changhong Group Finance Co., Ltd. | The proposal was deliberated and passed and agreed to be submitted to the board of directors of t | Not applicable | No |
| December 15,2023 | A total of 1 proposal was deliberate ,Proposal on Increasing the Daily Related Party Transactions in 2023 | The proposal was deliberated and passed and agreed to be submitted to the board of directors of t | Not applicable | No |
VIII. Works from Supervisory CommitteeWhether the Company has risks or not in reporting period that found in supervisory activity fromsupervisory committee
□Yes √ No
Supervisory committee has no objection about supervision events in reporting periodIX. Staff of the Company(i) Numbers, professional structure and education background
| On-job employee in parent company at period-end (people) | 4,898 |
| On-job employee in main subsidiary at period-end(people) | 11,251 |
| Total on-job employees at period-end(people) | 16,149 |
| Current total payroll(people) | 16,149 |
| Number of retired employees with expenses paid by the parent company and main subsidiary (people) | 81 |
| Professional structure | |
| Types of professional category | Numbers of professional category (people) |
| Production staff | 8,989 |
| Salesman | 4,495 |
| Technician | 1,795 |
| Financial staff | 295 |
| Administration staff | 575 |
| Total | 16,149 |
| Education background | |
| Type of education background | Numbers (people) |
| High school and below | 10,979 |
| Junior college | 2,190 |
| Undergraduate | 2,792 |
| Master and above | 188 |
| Total | 16,149 |
(ii) Remuneration policyThe Company formulated human resources and compensation policy conducive to sustainabledevelopment of enterprise according to the provisions of relevant laws and policies promulgated by thestate and to the Company's actual situation.The company continued to promote the performance growth index system , defined the direction ofemployee performance growth and progress, effectively encouraged employees to take the initiative tofind gaps and fill shortcomings, and continuously improved their professional ability and work efficiency.At the same time, based on the growth level of employees, it has established a remuneration mechanismthat is suitable for it, and optimized the post value evaluation and remuneration adjustment mechanismto enhance the internal fairness and external competitiveness of the company's remuneration andstrengthen the salary concept of "post value reflected and performance-oriented". In order to promotethe achievement of each unit's performance, this year, the company will further optimize and adjust theincentive system, strengthen the quantitative embodiment of operating results and incremental value,and design differentiated incentive schemes according to the characteristics of different business unitswith consideration of system balance, so as to realize the effectiveness of positive guidance andeffectively stimulate the business vitality of each business unit.During the reporting period, the company further optimized the position promotion evaluation andemployment mechanism, improved the position system and the promotion channels in sequence, andfurther stimulated the team's vitality through the integrating system evaluation and employment,performance growth system and other mechanisms, and matched the dynamic adjustment ofremuneration; continued to promote the application of performance management in the whole process,optimized the application of performance communication and feedback information methods,strengthened the application of performance results in cadre promotion and demotion, talent selection,salary adjustment and year-end evaluation, and encouraged employees to develop together with thecompany.(iii) Training plansThe company aimed at creating a learning organization, continuously optimized training and talentdevelopment, and built talent standards and competency models of each sequence based on thecompany's annual talent development and training program; built Meiling online learning system andknowledge asset management system to extract and precipitate internal experience and ability; organizedthe implementation of internal and external special precision training programs; carried out projects suchas learning map and talent structure optimization, and gradually formed a growth mechanism thatcombined training with employee growth and career development.
1. Further develop the mechanism of selecting, educating, using and retaining reserve talents. Thecompany has established a clear talent standard evaluation model to complete the talent standards formanagement positions, supervisor-level positions and various professional positions in all sequences;
established a succession map of talents in key positions in each sequence, and clarified the currentsituation of the existing talent team and the succession system of different types of talents in the future.The company focused on optimizing the echelon structure of the "Yongquan Plan" talent reserve, andoptimized and adjusted the echelon structure of middle and senior reserve cadres, A-class reservesuccessors, A-class reserve learning, B-class reserve supervisors, excellent college students and othertalents through the selection of young reserve cadres who were born after 1990 and the regular reviewand evaluation of reserve talents in the library. At the same time, based on the needs of future businessdevelopment, it reserved talents appropriately in advance to realize dynamic management of talents.
2. Accurate training, to improve the training effect. Based on the needs of business development, it hasbuilt a multi-level and multi-category talent training system. On the one hand, it improved the trainingenthusiasm and professional ability of the trainees through activities such as project integrating systemand industry exchange; on the other hand, it introduced external training courses and internal coursedevelopment to effectively promote the precision training program in view of the common shortcomingsof the team and shortcomings of personal ability; According to the professional ability of key positionsin the professional level, it built a learning map and defined the map of growing professional routes; Atthe same time, it established the training organization guarantee system, and built the company'sclassified and graded talent training system. Through career planning analysis, course orientationpromotion, node control, project review, training examination and other ways, it guided the vertical(promotion) and horizontal (multi-skilled workers, rotation) all-round development effectively, andachieved the training effect and talent promotion gradually.
3. Enrich the company's internal knowledge asset management system, redefine the company'sintellectual assets standards and organizational guarantee system. On the one hand, it continued tosupplement and update the teaching materials of Meiling's knowledge assets library on technology,management, manufacturing, quality, safety and environmental protection; On the basis of "internaltrainer certification system" and "benchmarking post knowledge extraction project", optimized theprofessional series of live courses, internalized the company's standard talent knowledge base and carriedon the inheritance and influence; On the other hand, it carried out the learning map project, and designedthe learning map through the process, structure, finance and other sequences, so as to closely connectthe qualifications of specific positions with the learning map, and to combine the talent developmentwith the learning development organically, and to promote the scientific, systematic and efficient trainingof professionals in each sequence position of the company.(iv) Labor outsourcing
□ Applicable √ Not applicable
X. Profit distribution plan and capitalizing of common reserves plan(i) Formulation, Implementation and Adjustment of Profit Distribution Policy Especially CashDividend policy during the Reporting Period
√ Applicable □ Not applicable
During the reporting period, the company has strictly executed the profit distribution policy in
accordance with the "Articles of Association", the formulation and implementation of the company's cashdividend policy are in line with the provisions of "Articles of Association" and the requirements of theresolutions of shareholders' meeting, the dividends standards and proportion have been definite and clear,relevant decision-making procedures and mechanisms have been complete, the responsibilities ofindependent directors have been clear and have played its due role, minority shareholders have had theopportunities to fully express their views and aspirations, and the legitimate interests of minorityshareholders have been maintained.During the reporting period, the company implemented the annual profit distribution plan for 2022, thatis, based on the total share capital of 1,029,923,715 shares on date of record at the time of implementingthe 2022 annual equity distribution plan (including 881,733,881 shares of A shares and 148,189,834shares of B shares), the company distributed a cash dividend of RMB 0.9 (including tax) for every 10shares to all shareholders, with a total cash dividend of RMB 92,693,134.35.
| Special explanation on cash dividend policy | |
| Satisfy regulations of General Meeting or requirement of Article of Association (Y/N): | Y |
| Well-defined and clearly dividend standards and proportion (Y/N): | Y |
| Completed relevant decision-making process and mechanism (Y/N): | Y |
| Independent directors perform duties completely and play a proper role (Y/N): | Y |
| If the company does not distribute cash dividends, specific reasons should be disclosed, as well as the next steps to be taken to enhance investor returns: | Not applicable |
| Minority shareholders have opportunity to express opinions and demands totally and their legal rights are fully protected (Y/N): | Y |
| Condition and procedures are compliance and transparent while the cash bonus policy adjusted or changed (Y/N): | Y |
(ii) The Company is profitable during the reporting period and the parent company has positiveprofit available for distribution to shareholders without cash dividend distribution planproposed
□ Applicable √ Not applicable
(iii) Profit distribution plan and capitalizing of common reserves plan for the Period
√ Applicable □ Not applicable
| Bonus shares for every 10-share (Share) | 0 |
| Dividends for every 10-share (RMB) (Tax included) | 3 |
| Shares added for every 10-share base (Share) | 0 |
| Equity base of distribution plan (Share) | 1,029,923,715 |
| Total cash dividend (RMB) (Tax included) | 308,977,114.50 |
| Cash dividend for other ways (i.e. repurchased) (RMB) | 0 |
| Total cash dividend (including other way) (RMB) | 308,977,114.50 |
| Profits available for distribution (RMB) | 1,294,109,238.10 |
| Ratio of cash dividend (including other way) in total profit distribution | 100% |
| Cash dividend | |
| Taking the total share capital of 1,029,923,715shares on the equity registration date of the company’s on December 31, 2023 as the base, distribute cash dividends of 3 yuan (tax included) for every 10 shares to all shareholders, not giving bonus shares, and not converting capital reserve in to equity. | |
| Detail explanation on profit distribution or capitalization from capital public reserve | |
| According to the audit by ShineWing Certified Public Accountants (Special General Partnership), in 2023, the net profit realized in individual financial statements of the parent company was RMB 358,345,033.36. As of December 31, 2023, the cumulative undistributed profit in individual financial statements of the parent company was RMB 1,294,109,238.10. In addition, in the consolidated financial statements of the company for the year 2023, the net profit attributable to the owners of the parent company was 741,038,108.54 yuan. As of December 31, 2023, the cumulative undistributed profit in the consolidated financial statements was 1,521,759,836.64 yuan. According to relevant regulations, the distribution of company profits should be based on the profits available for distribution by the parent company, and follow the principle of distributing the lower of the cumulative undistributed profits in the consolidated financial statements and the parent company's financial statements. Therefore, the distributable profit for 2023 is the accumulated undistributed profit of RMB 1,294,109,238.10 in individual financial statements of the parent company. According to relevant regulations and the Company's Articles of Association, taking into account the interests of shareholders and the long-term development needs of the company, it is proposed that the company distribute a cash dividend of 3 yuan (including tax) for every 10 shares to all shareholders based on the total share capital of 1,029,923,715 shares as of December 31, 2023, without bonus shares or conversion of reserve funds into share capital. It is expected to distribute a cash dividend of 30,897,714.50 yuan. After this distribution, it is expected that the remaining cumulative undistributed profit of the parent company will be 985,132,123.60 yuan, and the remaining undistributed profit will be carried forward for distribution in future years.. | |
XI. Implementation of the Company’s stock incentive plan, employee stock ownership plan orother employee incentives
□ Applicable √ Not applicable
The Company has no equity incentive plan, employee stock ownership plans or other employeeincentives.XII. Construction and implementation of internal control system during the reporting period(i) Construction and implementation of internal controlIn accordance with the Basic Norms for Enterprise Internal Control and its supporting guidelines, andthe Information Disclosure Compilation Rules for Companies Publicly Issuing Securities No. 21 -General Provisions on Annual Internal Control Evaluation Reports jointly issued by the China SecuritiesRegulatory Commission and the Ministry of Finance and other relevant regulations, and combined withthe Company's internal control system and internal control evaluation methods, the company organizedits internal control work, effectively implemented internal control, and continuously improved andoptimized the company's internal control system so as to adapt to the needs and changes of the internaland external environment.The company's 2023 Annual Internal Control Self-Assessment Report fully, truly and accuratelyreflected the actual situation of the company's internal control. The units, businesses and mattersincluded in the assessment scope, as well as high-risk areas, covered the main aspects of the company's
operation and management, and the company maintained effective internal controls in high-risk areasand in all material aspects. During the reporting period, the company had no major defects and significantdefects in internal control.(ii) Details of major defects in IC appraisal report that found in reporting period
□Yes √ No
XIII. Management and controls on the subsidiary during reporting period
| Name of company | Integration plan | Integration progress | Problems encountered in integration | Actions taken | Resolve progress | Follow-up resolution plan |
| Not applicable | - | - | - | - | - | - |
XIV. Internal control self-assessment report or internal control audit report(i) Appraisal Report of Internal Control
| Date of evaluation report of internal control disclosed (Full-text) | March 30,2024 | ||
| Index of evaluation report of internal control disclosed (Full-text) | （www.cninfo.com.cn） | ||
| The ratio of the total assets of units included in the scope of evaluation accounting for the total assets on the company's consolidated financial statements | 99.89% | ||
| The ratio of the operating income of units included in the scope of evaluation accounting for the operating income on the company's consolidated financial statements | 100.00% | ||
| Defects Evaluation Standards | |||
| Category | Financial Reports | Non-financial Reports | |
| Qualitative criteria | 1. Material defect: severally or jointly with other defects, will lead to material wrong reporting in financial reports being not able to prevented or found or rectified in a timely manner. Occurrence of the followings will be deemed as material defect: 1. inefficiency of environment control; 2. fraud of directors, supervisors and senior management; 3. The external auditor finds material wrong reporting in current financial statement, while the Company has not found such reporting during its operation; 4. The material defect identified and reported to the management fails to be rectified in a reasonable time period; 5. The audit committee and audit department of the Company exercise invalid supervision upon internal control; 6. Other defects which may affect financial statement users to make correct judgment. 2. Major defect: severally or jointly with other defects, will lead to wrong reporting in financial reports being not able to prevented or found or rectified in a timely manner which still needs attention from the management though it doesn’t reach or exceed material defect as | Occurrence of the followings shall be deemed as material defect, otherwise as major defect or general defect subject to the level of influence. 1. breach of national laws, regulations or regulatory documents; 2. procedure for making significant decisions is not scientific; 3. absence of system may lead to invalid system; 4. Material or major defects are not likely to rectify; 5. Large negative effects on the company and disclosed in the form of announcement; 6. Other issues that materially affect the Company. | |
| described above. Occurrence of the followings will be deemed as major defect: (1) Financial losses caused by guaranteeing and investing in securities and financial derivatives transactions and disposing property right and stock right without authorization; (2) The company's financial staff or other relevant business personnel have unclear powers and responsibilities or job chaos, or are suspected of being involved in economic or job-related crimes and have been transferred to the judiciary; (3) Punishment or severely negative impacts on the company's image due to the bias implementation of the policy or accounting errors, etc.; (4) Financial losses caused by destroying, concealing, or altering the important original evidences at will, such as invoices and checks, etc. (5) Cash income is not entered into the account book, or public funds are deposited in private account or "private coffer" is established by breaking the rules. 3. General defect: other internal control related defects that do not constitute material defects or major defect. | |||
| Quantitative standard | 1. Proportion of potential wrong reporting in total operating income: Material defect: wrong reporting ≧0.5%; Major defect: 0.1% ≤ wrong reporting＜0.5%; General defect: wrong reporting＜0.1%. 2. Proportion of potential wrong reporting in total profit: Material defect: wrong reporting ≧10%; Major defect: 5% ≤ wrong reporting＜10%; General defect: wrong reporting＜5%. 3. Proportion of potential wrong reporting in total assets: Material defect: wrong reporting ≧0.5%; Major defect: 0.1% ≤ wrong reporting＜0.5%; General defect: wrong reporting＜0.1%. 4. Proportion of potential wrong reporting in total owners’ equity: Material defect: wrong reporting ≧0.5%; Major defect: 0.1% ≤ wrong reporting＜0.5%; General defect: wrong reporting＜0.1%. | 1. Proportion of direct property loss in total operating income: Material defect: wrong reporting ≧0.1%; Major defect: 0.05% ≤ wrong reporting＜0.1%; General defect: wrong reporting＜0.05%. 2. Proportion of direct property loss in total profit: Material defect: wrong reporting ≧10%; Major defect: 5% ≤ wrong reporting＜10%; General defect: wrong reporting＜5%. 3. Proportion of direct property loss in total assets: Material defect: wrong reporting ≧0.2%; Major defect: 0.1% ≤ wrong reporting＜0.2%; General defect: wrong reporting＜0.1%. 4. Proportion of direct property loss in total owners’ equity: Material defect: wrong reporting ≧0.2%; Major defect: 0.1% ≤ wrong reporting＜0.2%; General defect: wrong reporting＜0.1%. | |
| Amount of significant defects in financial reports | 0 | ||
| Amount of significant defects in non- | 0 | ||
| financial reports | |
| Amount of important defects in financial reports | 0 |
| Amount of important defects in non-financial reports | 0 |
(ii) Auditing report of internal control
√ Applicable □ Not applicable
| Deliberation section of auditing report of IC | |
| We consider that: in all major aspects, Changhong Meiling Co., Ltd. has efficiency in financial report of internal control dated 31 December 2023 according to Basic Standards of Internal Control for Enterprise and relevant regulations. | |
| Disclosure details of audit report of internal control | Disclosed |
| Disclosure details of audit report of internal control | March 30,2024 |
| Disclosure date of audit report of internal control (full-text) | Juchao Website（www.cninfo.com.cn） |
| Index of audit report of internal control (full-text) | Standard unqualified |
| Opinion type of auditing report of IC | No |
Whether CPA carries out qualified opinion for audit report of internal control or not
□Yes √ No
Whether the opinions are consistent in audit report of internal control carrying out by CPA and the self-evaluation report of the Board or not
√ Yes □ No
XV. The rectification of self-examination problems in the special actions on governance of listedcompanies
√Yes□No
For details, please refer to Article 15 of Chapter IV "Rectification of Problems Found in Self-inspectionof Special Actions for Governance of Listed Companies" in the Company's Annual Report in 2022. Upto now, the problems found in the Company's self-inspection have not been fully rectified as follows:
(i) Subsidiary holding shares of listed companies and the rectification
1. Meiling Group, a wholly-owned subsidiary of the company, held 1,141,053 restricted shares of theCompany. The restricted shares held by Meiling Group were the consideration shares received for theshare reform on behalf of other non-tradable shareholders in the company's reform plan for non-tradableshares. In March 2016, according to the approval of the State-owned Assets Supervision andAdministration Commission of the State Council, the 49,477,513 state-owned shares (including thealready held 47,823,401 shares and the unrecovered relevant rights of the consideration of 1,654,112shares received for the share reform on behalf of other non-tradable shareholders in the company's reformplan for non-tradable shares) of the Company held by Hefei Xingtai Holdings Group Co., Ltd., thecompany's original shareholder, should be transferred to Industry Investment Group free of charge.Therefore, the restricted shares of the Company held by Meiling Group should be transferred to IndustryInvestment Group free of charge.
2. According to the approval of the State-owned Assets Supervision and Administration Commission ofthe State Council and the regulations of relevant departments, Meiling Group should transfer the sharespaid on behalf of others and related rights held by it to Industry Investment Group at one time free ofcharge after recovering all the 1,654,112 shares of consideration for the share reform. At present, MeilingGroup has only recovered 1,141,053 shares, and the holders of the remaining consideration shares forthe share reform have been unable to get in touch for many times and for many years, there is greatuncertainty about the time when all the shares will be recovered. However, the company still activelypromotes the recovery of the shares advanced by Meiling Group, and handles the relevant proceduresfor free transfer as soon as possible after all the consideration shares for the share reform are recovered.Prior to this, the company's restricted shares held by Meiling Group would not enjoy any rights asshareholders during the holding period, including voting rights, dividend rights, etc.
V. Environmental & Social Responsibility
I. Major environmentalThe listed Company and its subsidiary whether belongs to the key sewage units released from environmentalprotection department
√ Yes □ No
The Company and subordinate subsidiaries Changhong Air-conditioning are not belongs to the key emission unitsannounced by the authority of environmental protection.
1. Policies and industry standards related to environmental protection
In their daily production and operation, the Company and its subsidiaries strictly abide by the requirements in theEnvironmental Protection Law of the People's Republic of China, Environmental Impact Assessment Law of thePeople's Republic of China, Law on Prevention and Control of Water Pollution of the People's Republic of China,Law on the Prevention and Control of Atmospheric Pollution of the People's Republic of China, Law on Preventionand Control of Environmental Pollution by Solid Waste of the People's Republic of China, Regulations on theAdministration of Construction Project Environmental Protection, Environmental Protection Regulations of AnhuiProvince, Regulations on Preventionand Control of Environmental Pollution by Solid Waste in Sichuan Province,and other relevant laws and regulations.During the reporting period, Changhong Air Conditioning, a subsidiary of the Company, carried out self-monitoringaccording to regulations, in which for VOCs, refer to Table 3 of Emission Standard for Atmospheric Volatile OrganicCompounds from Stationary Pollution Sources in Sichuan Province DB51/2377-2017; For nitrogen oxides, refer tothe secondary standard in Table 2 of Comprehensive Emission Standard for Air Pollutants (GB16297-1996); Forsulfur-containing compounds, refer to the standard in Table 2 of Comprehensive Emission Standard for AirPollutants (GB16297-1996). For dust, refer to the secondary standard in Table 2 of Comprehensive EmissionStandard for Air Pollutants (GB16297-1996).
2. Environmental protection administrative license
The Company and its subsidiaries conscientiously implement the Environmental Protection Law, the EnvironmentalImpact Assessment Law and the Regulations on the Administration of Construction Project EnvironmentalProtection, and consciously abide by environmental protection laws and regulations, industry requirements andgovernment regulations at all levels. For new construction, renovation and expansion projects, the Company and itssubsidiaries adhere to the system of project environmental assessment and "three simultaneities", fully implementenvironmental protection measures, well ensure environmental protection management in all aspects of projectplanning, design, construction and operation, and make full use of advanced technology and scientific andtechnological means to lower and reduce environmental pollution. It carries out environmental impact assessmentsimultaneously in the feasibility study and demonstration stage of the construction project, and entrusts the third-party professional organization to analyze the feasibility of the industrial policy, land use planning, environmentalimpact and environmental protection measures of the project. The construction starts upon the approval of thecompetent environmental protection department. During the construction of the project, it carefully implements theenvironmental protection requirements, and builds the environmental protection facilities simultaneously. After thecompletion, the environmental protection acceptance of the project is organized in time to ensure that the project
meets the acceptance criteria and meets the requirements of environmental assessment before it is officially put intouse. During the operation period, it carries out pollution prevention and control actively in strict accordance withthe environmental impact assessment documents of the project and the approval requirements of the competentenvironmental protection department to ensure the normal operation of environmental protection facilities.The Company and subordinate subsidiaries Changhong Air-conditioning ,The sewage discharge permit was appliedon March 31, 2020 and is valid until May 12, 2025.
3.Industrial emission standard and specific conditions of pollutant emissions involved in production andoperation activities
| Company or subsidiary name | Main pollutant and specific pollutant type | Main pollutant and specific pollutant name | Way of discharge | number of discharge outlets | Distribution of discharge outlets | concentration of discharge | Pollutants discharge standards enacted | Total discharge volume | Total discharge volume certified | Discharge beyond the standards |
| Sichuan Changhong Air-conditioning Co., Ltd. | Sichuan Changhong Air-conditioning Co., Ltd. | VOCs | Organized emission | 3 | Two outlets in Workshop J05 and one outlet in Workshop J07, No.128 Sanjiang Avenue, Economic Development Zone, Mianyang City | ≤25.3mg/m3 | Standard in Table 3 of Emission Standard for Atmospheric Volatile Organic Compounds from Stationary Pollution Sources in Sichuan Province (DB51/2377-2017), that is the volatile organic compounds shall be ＜60 mg/m3. | 4494kg | Sichuan Changhong Air Conditioning Co., Ltd. has completed the pollutant discharge registration of the national pollutant discharge permit management information platform and obtained the registration receipt according to the requirements of relevant laws and regulations, such as Measures for the | Not exceeded |
| Oxynitride | Oxynitride | Organized emission | 2 | Two outlets in Workshop J05 and one outlet in Workshop J07, No.128 Sanjiang Avenue, Economic Development Zone, Mianyang City Two outlets in Workshop J05, No.128 Sanjiang Avenue, Economic Development Zone, Mianyang | ≤3mg/m3 | Secondary standard in Table 2 of Comprehensive Emission Standard for Air Pollutants (GB16297-1996), that is, the concentration of nitrogen oxides shall be ＜240 mg/m3 | 722kg | Not exceeded |
| City (the same outlet as J05VOC). | Administration of Pollutant Discharge Permits (trial), Catalogue of Classified Management of Pollutant Discharge Permit of Stationary Pollution Sources (2019 Edition), etc. There was no requirement for the total amount of pollutant discharge of the Company in the pollutant discharge registration. | |
Sulfocompound
| Sulfocompound | Sulphur dioxide | Organized emission | 2 | ＜4mg/m3 | Secondary standard in Table 2 of Comprehensive Emission Standard for Air Pollutants (GB16297-1996),that is SO2＜550mg/m? | 768kg | Not exceeded | ||
| Dust | Particulate matter | Organized emission | 4 | Two outlets in Workshop J05 and one outlet in Workshop J07, No.128 Sanjiang Avenue, Economic Development Zone, Mianyang City | ≤2.6mg/m3 | Secondary standard in Table 2 of Comprehensive Emission Standard for Air Pollutants (GB16297-that is Particulate matter＜120mg/m? | 768kg | Not exceeded |
4. Treatment of pollutants
Zhongshan Changhong, a subsidiary company, treats pollutants in accordance with relevant laws and regulations onenvironmental protection, and disposes of them according to disposal requirements after they reach the relevantstandards.
(1) Waste gas
Changhong Air Conditioning has established a refined waste gas treatment system, and 4 sets of waste gas treatmentfacilities for wave-welding waste gas, and adopted the treatment process of "dry interception filter + UV photolysispurifier", to achieve organized discharge up to the standard through the 20m-high exhaust funnel at the top of theworkshop.It has established 3 sets of waste gas treatment facilities for the welding waste gas of the two devices, and adoptedthe treatment process of "pulse filter cartridge dust removal equipment + UV composite photocatalysis", to achieveorganized discharge up to the standard through the 18m-high exhaust funnel at the top of the workshop;It has established 2 sets of waste gas treatment facilities for the three-proof coating waste gas, and adopted thetreatment process of "dry interception filter+ activated carbon adsorption", to achieve organized discharge up thestandard through the 20m-high exhaust funnel at the top of the workshop;It has established 4 sets of waste gas treatment facilities for degreasing waste gas, and adopted the treatment processof "spray tower + drying defogging box + UV composite photocatalysis + activated carbon adsorption", to achievethe organized discharge up to the standard through the 18m-high exhaust funnel at the top of the workshop.
(2) Hazardous waste
Changhong Air Conditioning has built special storage facilities for hazardous wastes, with floor made ofnonflammable epoxy mortar, anti-leakage ditch and collection tank, which can effectively prevent the leakage riskof hazardous wastes and meet the current storage requirements of hazardous wastes. At the same time, it regularlyentrusts all kinds of hazardous wastes to units with qualifications for hazardous waste disposal for standardized andcentralized harmless disposal.
5. Independent plan to monitor environment
The Company and its subsidiaries have established regular monitoring plan for environmental pollutants, set upspecial funds for pollutants monitoring, and engaged third-party authoritative to regularly monitor the operation ofmajor pollution-production links and environmental protection treatment facilities in connection with the majorpollutants produced by the Company and its subsidiaries, to make sure that the Company and its subsidiaries couldachieve emission standards in a full round.
6. Emergency plan for environmental emergencies
The Company and its subsidiaries have set up related emergency plans for environmental emergencies. TheCompany and its subsidiaries have determined classified warning based on the different extent and severity ofenvironmental impacts that may be caused by the material environmental factors, defined the responsibilities foremergency response, regulated emergency handling procedures, established special team to handle emergencies andorganized regular rehearsal and appraisal of relevant emergency plans, so as to ensure the effectiveness of theseplans, improve their capability of emergency handling and take precautions against contingent emergencies.
7. Investment in environmental governance and protection and the relevant payment of environmentalprotection taxThe company's investment in environmental protection mainly includes the investment in the construction ofenvironmental protection facilities, that is, the investment in purchasing and installing fixed assets such asenvironmental protection facilities and equipment, as well as the operation and maintenance expenses ofenvironmental protection facilities, environmental protection tax, and third-party outsourcing testing.
8.Measures taken to reduce carbon emissions and their effectiveness during the reporting period
√Applicable □ Not applicable
Combining the characteristics and special requirements of carbon emissions, the company strengthens the energymanagement of each production unit, improves the internal energy management and energy efficiency indexassessment and energy consumption evaluation system, continues to carry out energy measurement and evaluation,follows the principles of system management, and establishes a complete and effective management system. Duringthe reporting period, the company vigorously promoted and applied the industry's advanced energy-savingequipment and technologies, and carried out energy-saving technical transformation; carried out energy-savingtransformation for high-consumption and low-efficiency air compressors, upgrading and transformation for aircompressor joint control systems, energy-saving transformation for steam pipelines, research and application forinfrared heating technology, application research for air energy units, application research for air compressor wasteheat recovery and utilization, and replacement of high-efficiency and energy-saving heating tiles and other energy-saving renovation measures, improved automation and intelligence, and combined energy management with
informatization construction, improved the production and manufacturing system through internet technology,realized lean production management, improved production efficiency, and reduced energy waste and CO
emissions. In addition, the Company also pays attention to the use of recyclable packaging and transshipmentmaterials to reduce carbon emissions in the procurement process, and is actively promoting the recycling ofmaterials such as pallets to reduce carbon emissions in the whole production process.
9. Administrative penalties for environmental issues during the reporting period
| Name | Cause | Violation of the situation | Result | Impact on the production and operation of listed companies | The company's rectification measures |
| Not applicable | Not applicable | Not applicable | Not applicable | Not applicable | Not applicable |
10. Other environment information that should be disclosed
According to the Environmental Information Disclosure Measures of Enterprises and Institutions, in line with theprinciple of mandatory disclosure and voluntary disclosure combined, the Company and its subsidiaries haverealized the disclosure of information relating to environmental impact assessment, project acceptance, pollutantsproduction and discharge, solid waste management, important environmental factors, environmental objectives andperformance of construction projects.
11. Other environment related information
In order to further realize the scientific and systematic environmental protection work of the Company and itssubsidiaries, the Company and its subsidiaries have established an environmental management system in accordancewith ISO14001 standards, set up an environmental protection organization, acquired environmental protectionresources, regularly identified, updated and appraised environmental factors, compliance obligations, environmentalrisks and opportunities, and regularly determined environmental objectives and management programs. Throughthe implementation of management programs and continuous normal improvement, the environmental performanceof the Company and its subsidiaries has been continuously improved. Through regular internal audit andmanagement review, as well as the verification and examination of the third parties, the environmental managementsystem of the Company and its subsidiaries has been effectively controlled and fully meets the system managementstandards and relevant regulations.II. Social responsibilityThe Company continues to promote win-win development with its stakeholders, earnestly fulfills its socialresponsibilities, pays close attention to the voices of all stakeholders, and actively gives back and improves, and isdetermined to become an enterprise that is respected by the society and loved by its employees. While achievingsound development, it pays attention to protecting the interests of its shareholders, employees, suppliers, customersand consumers, and actively engages in public welfare undertakings, thus promoting the harmonious developmentof the Company and the whole society.
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 the
Rules 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, According to theReturn Plan for Shareholders of Changhong Meiling Co., Ltd. for the Next Three Years (2021 -2023), combinedwith the Company's own operating conditions and other factors, during the reporting period, the Companyimplemented the profit distribution plan for 2022, paid dividends in cash and gave shareholders a reasonable returnon investment. At the same time, during the reporting period, the Company held four General Meetings ofShareholders, and implemented a combination of on-site voting and online voting to allow investors to fullyparticipate and ensure shareholders' right to know, participate and vote on major issues of the Company. When theGeneral Meeting of Shareholders reviews major issues that affect the interests of small and medium-sized investors,the votes of small and medium-sized investors shall be counted separately and publicly disclosed in the resolutionsof the General Meeting of Shareholders in time to fully protect the rights and interests of small and medium-sizedinvestors.In addition, in order to establish a variety of shareholder return mechanisms and thank investors for their long-termconcern and support for the Company, during the reporting period, the Company held the "Meiling 40th AnniversaryShareholder Thanksgiving Festival" to give back to all shareholders with sincerity.
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 attaches importance to the vital interests of employees, protects thelegitimate rights and interests of employees to the maximum extent, establishes harmonious labor relations, andstrives to form a good mechanism for the company and employees to create and share together. At the same time,the company creates a people-oriented cultural atmosphere by providing various holidays, allowances, condolencesand organizing diversified employee activities, benchmarking personnel selection, carnivals, etc., and continuouslyimproves employee satisfaction.
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 has a perfect product development process, advanced R&D system, and constantly develops productswith leading technology. The Company attaches great importance to product quality, has strong quality controlability, reliable product performance and a refined quality management system, and has passed the managementsystem certifications such as ISO9001, ISO14001 and ISO45001. The Company's testing center has CNASaccreditation qualification, complete test items and strong testing ability, which meets the requirements of strict andhigh-level testing of products. At the same time, it has built one of the few RoHS and intelligent IoT laboratories inthe industry. The Company attaches importance to user satisfaction and user reputation, and in the domestic market,it increases its attention and support in terminal construction, user experience and product training to increase thesales of products; In the export market, it fully recognizes the requirements of local laws and regulations, strictlycertifies products, and fully verifies the reliability and environmental adaptability of products to ensure the reliabilityof products in the target market. Its export products have covered more than 130 countries or regions. According todifferent types of customers, it implements classification and system management through the information system,and timely feeds back the demands put forward by customers, continuously improves quality services and enhancesbrand image; It also tracks the market performance by monitoring customer satisfaction, user complaint rate anduser net recommendation value.For the protection of consumers' rights and interests, the company has a relatively advanced closed-loopmanagement system for user service. In order to meet users' service needs, it gradually improves the functionconstruction of official channel service platforms such as 400 service hotline, brand official website, WeChat officialaccount and Zhihuijia APP, attaches importance to and strengthens the user interaction and experience of socialplatforms such as Tik Tok, Xiaohongshu, Weibo, Bilibili and Zhihu, and understands and handles users' needs andquestions in time. In view of user demand processing, it promotes the process visualization management and userevaluation system management of work order processing timeline. In addition, the company pays attention toimproving consumers' product guarantee service ability, and has created Meiling's exclusive characteristic guaranteeservice measures, and upgraded and launched the services such as unconditional return within 180 days for MeilingM fresh refrigerator because of dissatisfaction in preservation, and unconditional return within 180 days for Meilingclean refrigerator because of dissatisfaction in disinfection and sterilization, so as to effectively meet users' needsand enhance consumer satisfaction.
4. Social welfare
For many years, the company has actively participated in social welfare undertakings and various social welfareactivities. The company actively carries out actions such as assisting employees with serious illnesses andadvocating for voluntary donations from employees..During the reporting period, the Party Committee of the Company actively participated in the third party buildingproject of micro-public welfare venture capital in the Jinxiu Community Social Organization Incubation Park inHefei Economic Development Zone; Zhongke Meiling, a subsidiary of the Company, established the "Friends ofTsinghua - Meiling Biomedical Scholarship" to promote the independent innovation and high-quality developmentof the medical devices and scientific research instrument and equipment industry in China; At the same time, incombination with the needs of its own business development and social responsibility, Zhongke Meiling donatedan automatic vaccination workstation worth RMB 1.15 million to the Linhu Community Health Service Center of
Hefei Economic and Technological Development Zone through the Hefei Red Cross Society to improve theefficiency and safety of vaccination.III. Consolidate and expand the achievements of poverty alleviation and rural revitalizationNone
VI. Important EventsI. Implementation of commitment(i) Commitments that the actual controller, shareholders, related party, the buyer and the company have fulfilled during the reporting period and have notyet fulfilled by the end of reporting period
√ Applicable □ Not applicable
| Commitment | Commitment party | Type/content | Date | Term | Implementation | |
| Commitments made in acquisition report or equity change report | Sichuan Changhong Electric Co., Ltd.(hereinafter, the “Sichuan Changhong”) | About committed and promised in order to prevent horizontal competition in the Acquisition Report of Hefei Meiling Co., Ltd. | 1. The acquirer shall not engage in refrigerator business or activity which competes or will compete with business of Meiling Electrical Appliances, or that which has interest conflict with Meiling Electrical Appliances. | 2007-6-12 | Valid for long term | Strictly implemented |
| 2. The acquirer promises to apply shareholders’ right on a legal and reasonable manner and shall not take any action to limit or affect the normal operation of Meiling Electric. | Valid for long term | Strictly implemented | ||||
| 3. For any opportunity to engage in competing business, the acquirer will advise Meiling Electric in written for engaging such business or not. If Meiling Electrical Appliances gives no clear written reply as to whether engaging the competing business or not within 20 days after receipt of the aforesaid letter, it shall be deemed that it will not engage in such business. The acquirer will only engage in non-competing business provided that Meiling Electric confirms not to or is deemed to not engage in such non-competing business. | Valid for long term | Strictly implemented | ||||
| Commitment made during the non-public offer of 2010 | Sichuan Changhong | Commitment regarding to reducing and preventing competition with Meiling Electric | 1. It will not engage in such business or activity that competes with or has interest conflict with that of Meiling Electric except for the action taken for sake of Meiling Electric as required by Meiling Electrical Appliances. | 2010-6-24 | Valid for long term | Strictly implemented |
| 2. The Company promises to apply shareholders’ right on a legal and reasonable manner and shall not take any action to limit or affect the normal operation of Meiling Electric | ||||||
| 3. In case that Meiling Electric expects, on the basis of its existing business, to | ||||||
| expand its operation scope into the business which the Company has already operated, the Company agrees to grant priority acquisition right to Meiling Electric regarding such business if the same conditions are met, provided that the Company is still the controlling shareholder or actual controller of Meiling Electric | |||||
| Commitment regarding to reducing and standardizing related transaction with Meiling Electric | 1. Measures will be adopted to prevent continued related transaction with Meiling Electric: as to the related transaction that can not be prevented, it will sign related transaction agreement with Meiling Electric under the market principles of “equally paid and mutual benefit”, and fairly determined the transaction price according to the market prevailing standards. | June 24,2010 | Valid for long term | Strictly implemented | |
| 2. Perform the necessary obligations to make related directors and related shareholder abstain from voting according to relevant regulation, and observe legal procedure for approving related transaction and information disclosure obligations. | |||||
| 3. Promise not to hurt legal interests of Meiling Electric and other shareholders through related transaction. | |||||
| Commit to authorized Changhong Air-conditioner and Zhongshan Changhong use “Changhong” trademark and relevant patents for free. | November 6,2010 | Valid for long term | Strictly implemented | ||
| The Company | 1. Commit to disclose periodic reports on a truthful, accurate, complete, fair and prompt manner, to disclose all the information that have important influences over investors, to accept supervision under the CSRC and Shenzhen Stock Exchange. | January 7,2011 | |||
| 2. Commit to make public clarification in respect of such information that is released from any public media and may result in misleading influences on stock price once the Company is aware of such information. | |||||
| 3. The directors, supervisors, senior management and core technicians of the Company will accept opinions and criticism from the social public, and they will not trade the Company’s securities, directly or indirectly, with any inside information and other illegal methods. The Company promises that the documents submitted to Shenzhen Stock Exchange exist no false statement or | |||||
| material omission, and no relevant information will be disclosed during the application for listing without prior content from Shenzhen Stock Exchange. | ||||||
| Commitment made in transfer of air conditioning assets property | Sichuan Changhong | 1. Since the property transfer didn’t involve the buildings and land currently used by Changhong Air-conditioner, Sichuan Changhong commits, upon the completion of equity transfer, to continue to lease such assets to Changhong Air-conditioner at market price. | December 10,2009 | Valid for long term | Strictly implemented | |
| 2. After completion of this property transfer, Sichuan Changhong commits to manage to prevent new related transaction with Meiling Electric. For those which can not be prevented, Sichuan Changhong commits to determine the transaction price based on market accepted methods, so as to ensure fairness of related transaction and protection of the interest of Meiling Electric | Valid for long term | Strictly implemented | ||||
| 3. Sichuan Changhong commits that it will not engage in air conditioning and refrigerator business or activity which competes or will compete with business of Meiling Electric, or that which has interest conflict with Meiling Electric | ||||||
| Commitments of not to reducing the shares | Sichuan Changhong Electric Co., Ltd.and persons acting in concert CHANGHONG (HK) TRADING LIMITED | 1. Based on market conditions and as allowed by laws and rules, multiple measures were adopted adequately to increase shareholding of Meiling Electric, so as to demonstrate its firm confidence on the PRC economy and Meiling Electric with its actual actions, maintain sound development of capital market and promote recovery of healthy market | July 9,2015 | Valid for long term | Strictly implemented | |
| 2. Continued to support operation and development of listed company as always and promoted the achievement of Meiling Electric. It is committed to bringing steady and real return to investors. | ||||||
| Commitment made during the non-public offer in 2016 | The Company | 1. Promise to truly, accurately, completely, fairly and timely publish periodic reports, disclose all information that has significant impacts on the investors, and accept the supervision and management of China Securities Regulatory Commission and the Shenzhen Stock Exchange. | December 12,2016 | Valid for long term | Strictly implemented | |
| Make commitments that the Company will publicly clarify in time after knowing any information on any public communications media that may cause misleading influence on the stock price | ||||||
| 3. The Company’s directors, supervisors and senior executives will listen carefully to the opinions and criticisms of the public and never use any acquired inside information and other improper means to directly or indirectly engage in the trading activities of the Company's stock. | ||||||
| Perform the commitment promptly or not | √ Yes □ No | |||||
| If the commitment is overdue and has not been fulfilled, the specific reasons for incomplete performance and the work plan for next step shall be explained in detail | Not applicable |
Note: The fulfilled commitments in the form will not be disclosed in the next periodic report.
(ii) Concerning assets or project of the Company, which has profit forecast, and reporting period still in forecasting period, explain reasons of reaching theoriginal profit forecast
□ Applicable √ Not applicable
II. Non-operational fund occupation from controlling shareholders and its related party
□ Applicable √ Not applicable
NoneIII. External guarantee out of the regulations
□ Applicable √ Not applicable
No external guarantee out of the regulations occurred in the period.IV. Statement on the latest “modified audit report” by BOD
□ Applicable √ Not applicable
V. Explanation from Board of Directors, Supervisory Committee and Independent Directors (if applicable)for “Qualified Opinion” that issued by CPA
□ Applicable √ Not applicable
VI. Explanation of the changes in accounting polices, accounting estimates or correction of significantaccounting errors compared with the financial report of the previous year
√ Applicable □ Not applicable
Found more details in 38. Change of major accounting policy and estimation under III. Major accounting policyand estimation carried in the Section XI. Financial Report
VII. Compare with last year’s financial report; explain changes in consolidation statement’s scope
√ Applicable □ Not applicable
In the reporting period, the consolidated financial statements of the Company cover 22 subsidiaries, includingSichuan Changhong Air-conditioner Co., Ltd, Zhongshan Changhong Electric Co., Ltd. And Zhongke MeilingCryogenic Technology Co., Ltd. etc. Compared with the previous year, during the reporting period two enterpriseis included in the consolidate scope, During the reporting period, two subsidiaries included in the consolidatedstatement were cancelled: Hefei Meiling Marketing Co., Ltd. and Wuhan Meizhirong Appliance Marketing Co., Ltd.More details can be seen in the report “VII. Changes in the scope of the merger” and “VIII. Equity in other entities”of “Section X Financial Report”
VIII. Appointment and non-reappointment (dismissal) of CPA(i)CPAs currently engaged
| Name of domestic accounting firm | Shine Wing Certified Public Accountants(LLP) |
| Remuneration for domestic accounting firm ( RMB 10,000) | 140 |
| Continuous life of auditing service for domestic accounting firm | 15 years |
| Name of domestic CPA | Wang Xiaodong, Tu Xiaofeng |
| Continuous life of auditing service for domestic CPA | Wang Xiaodong(4 year), Tu Xiaofeng (2 year) |
| Name of foreign accounting firm (if applicable) | N/A |
| Remuneration for foreign accounting firm (RMB 10,000) (if applicable) | N/A |
| Continuous life of auditing service for foreign accounting firm (if applicable) | N/A |
| Name of foreign CPA (if applicable) | N/A |
| Continuous life of auditing service for foreign CPA (if applicable) | - |
(ii) Re-appointed accounting firms in this period
□Yes √ No
In reporting period, Shine Wing Certified Public Accountants (LLP) was appointed as audit institute of internalcontrol for the Company, auditing charge for internal control amounting as 270,000 yuan.IX. Particular about delisting after annual report disclosed
□ Applicable √ Not applicable
X. Bankruptcy reorganization
□ Applicable √ Not applicable
XI. Material lawsuits and arbitration of the Company
√Applicable □Not applicable
| Basic situation of litigation(arbitration) | Amount involved (Ten thousand yuan) | Whether to form estimated liabilities | Litigation(arbitration)progress | Litigation(arbitration)trial results and impact | Implementation of litigation(arbitration)judgments | Disclosure date | Disclosure index |
| Zhiyijia, an affiliated enterprise of the company, signed a sales contract with the defendant, Tianjin Pengsheng Logistics Co., Ltd. (hereinafter referred to as "Tianjin Pengsheng"). After the contract was signed, Zhiyijia, the plaintiff, supplied the goods to Tianjin Pengsheng, the defendant as agreed, but Tianjin Pengsheng, the defendant, failed to fulfill the payment obligation to Zhiyijia as agreed. As of November 30, 2022, according to statistics, Tianjin Pengsheng, the defendant, still owed Zhiyijia a payment of RMB 96,174,308.42. Based on this, Zhiyijia, the plaintiff brought a lawsuit against Tianjin Pengsheng, the defendant to the People's Court of Mianyang High-tech Industrial Development Zone, and requested the court to order Tianjin Pengsheng to immediately pay the plaintiff RMB 96,174,308.42 and the corresponding liquidated damages for overdue | 9,617.43 | No | The judgment of the first instance has come into effect. | The court ordered the defendant Tianjin Pengsheng to immediately pay the plaintiff RMB 96,174,308.42 and the corresponding liquidated damages for overdue payment, and bear the | Under execution | December 24,2022, October 20,2023 | (www.cninfo.com.cn)(2022-101and 2023-057） |
| payment, and bear the related litigation costs and property preservation guarantee fees. | related litigation costs and property preservation guarantee fees. | ||||||
| Meiling Group, a subsidiary of the Company, signed a sales contract with Gome Electrical Appliances Co., Ltd. (hereinafter referred to as "Gome"). After the contract was signed, Meiling Group, the plaintiff, fulfilled the supply obligation according to the contract, while Gome and its affiliated companies, the defendant, failed to fulfill the payment obligation to Meiling Group according to the contract. According to statistics, the defendant Gome and its affiliated companies owe Meiling Group RMB 9,841,267.21 for purchase payment and RMB 1,018,820.55 for liquidated damages for overdue payment, totaling RMB 10,860,087.76. Based on this, the plaintiff Meiling Group filed a lawsuit against the defendant Gome and its affiliated companies in the People's Court of Hefei High-tech Industry Development Zone. It requested the court to order the defendant Gome to immediately pay the plaintiff Meiling Group the purchase payment and the liquidated damages for overdue payment, totaling RMB 10,860,087.76. | 1,086.01 | No | The case has been accepted and is in the formal trial stage or pre-litigation mediation stage. | No trial result yet | No trial result yet | October20,2023 | (www.cninfo.com.cn)( 2023-058） |
| Accumulated amount of other litigation that does not meet the disclosure standard of major litigation | 11,029.97 | Part of it is a note | - | - | - | - | - |
Note: In 2023, an estimated liability of 394300 yuan was confirmed. For specific details, please refer to "40.Estimated Liabilities" in "V. Notes to Main Items of the Consolidated Financial Statements" in Section 10 of thefinancial report.Notes: The Company's shareholding in Zhiyijia is 50%, and the products are sold through Zhiyijia's smart tradingplatform. The customers, channels and sales transactions corresponding to the products sold are controlled anddocked by the company itself, and the external transaction object is Zhiyijia, and related transactions are formedbetween the Company and Zhiyijia. In terms of payment settlement, the Company and Zhiyijia follow the principleof "external customer account period is Zhiyijia's account period to the Company, and external customer paymentis Zhiyijia's payment to the Company, which is not allowed to be remained or transited at Zhiyijia". The amountsinvolved in this case are all accounts receivable and liquidated damages for overdue payment caused by theCompany's sales through the smart trading platform of Zhiyijia, but the subject of the agreement is Zhiyijia, andthis lawsuit will be filed by Zhiyijia. The Company and its affiliated enterprise Zhiyijia will claim their legitimaterights and interests according to law and actively take relevant measures to safeguard the legitimate rights andinterests of the Company, Zhiyijia and the investors.
XII. Penalty and rectification
□Applicable√Not applicable
During the reporting period, the Company had no Penalty and rectification.XIII. Integrity of the company and its controlling shareholders and actual controllers
□Applicable √ Not applicable
During the reporting period, the Company and the controlling shareholders and the actual controllers have hadgood reputation, and there is no large amount due unliquidated debt sentenced by the court.XIV. 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 | Pressure regulator, integrated circuit, transistors, steel plate, plastic parts, etc | Marketing price | 34,336.31 | 34,336.31 | 1.80% | 65,000.00 | No | Spot exchange, Bank acceptance | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.: 2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| 2 | Sichuan Changhong Electric Holdings Group Co., Ltd. | Controlling shareholder | Commodity purchased | Steel plate and plastic particles, etc | Marketing price | 3,715.78 | 3,715.78 | 0.20% | 15,000.00 | No | Spot exchange, Bank acceptance | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| 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 | 78,955.55 | 78,955.55 | 4.15% | 100,000.00 | No | Spot exchange, Bank acceptance | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| 4 | Sichuan Changhong Jijia Fine Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Commodity purchased | Base plate assembly, black plate, bracket etc. | Marketing price | 47,006.81 | 47,006.81 | 2.47% | 65,000.00 | No | Spot exchange, Bank acceptance | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| 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 | 11,012.12 | 11,012.12 | 0.58% | 20,000.00 | No | Spot exchange, Bank acceptance | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| 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 | 2,510.14 | 2,510.14 | 0.13% | 4,500.00 | No | Spot exchange, Bank acceptance | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| 7 | Sichuan Changhong International Hotel Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate | Commodity purchased | Foods | Marketing price | 3.23 | 3.23 | 0.00% | 15000 | No | Cash settlement | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| controller | ||||||||||||||
| 8 | 081 Electronics Group Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Commodity purchased | power transformer | Marketing price | 5.30 | 5.30 | 0.00% | 8,000.00 | No | Cash settlement | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| 9 | Guangdong Changhong Electronics Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Commodity purchased | Foam and carton | Marketing price | 753.21 | 753.21 | 0.04% | 8,000.00 | No | Spot exchange, Bank acceptance | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| 10 | Sichuan Changhong Intelligence Manufacturing Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Commodity purchased | Outside cover parts | Marketing price | 0.05 | 0.05 | 0.00% | 15000 | No | Cash settlement | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079 |
| 11 | Sichuan Hongwei Technology Co., Ltd | Other enterprise control under the same controlling shareholder and ultimate controller | Commodity purchased | Electric toothbrush, body fat weighing, smart watches, etc | Marketing price | 4.72 | 4.72 | 0.00% | 8,000.00 | No | Cash settlement | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| 12 | Hefei Changhong Industrial Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Commodity purchased | Inverter integrated board | Marketing price | 714.92 | 714.92 | 0.04% | 8,000.00 | No | Spot exchange, Bank acceptance | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| 13 | Sichuan Changhong New Energy Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Commodity purchased | Batteries | Marketing price | 20.18 | 20.18 | 0.00% | 15000 | No | Spot exchange, Bank acceptance | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| 14 | 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 | 806.22 | 806.22 | 0.04% | 8,000.00 | No | Cash settlement | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| 15 | Sichuan Changhong Source Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Commodity purchased | Bushing | Marketing price | 0.18 | 0.18 | 0.00% | 8,000.00 | No | Cash settlement | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| 16 | Changhong International Holdings (Hong Kong) Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Commodity purchased | Television | Marketing price | 5,500.00 | 5,500.00 | 0.29% | 12,000.00 | No | Cash settlement | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| 17 | Sichuan Changhong Device Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Commodity purchased | printed board | Marketing price | 797.63 | 797.63 | 0.04% | 8,000.00 | No | Bank acceptance | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| 18 | 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 | 2,761.52 | 2,761.52 | 0.15% | 4,000.00 | No | Spot exchange, Bank acceptance | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| 19 | Sichuan Jiahong Industrial Co., Ltd | Other enterprise control under the same controlling shareholder and ultimate controller | Commodity purchased | Catering services | Marketing price | 2.80 | 2.80 | 0.00% | 15000 | No | Cash settlement | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| 20 | Sichuan Ailian Science & Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Commodity purchased | Internet access modules, electronic components, etc | Marketing price | 1,234.06 | 1,234.06 | 0.06% | 5,000.00 | No | Spot exchange, Bank acceptance | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| 21 | Changhong Huayi Compressor Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Commodity purchased | Compressor，air compression | Marketing price | 56,361.04 | 56,361.04 | 2.96% | 54,000.00 | No | Spot exchange, Bank acceptance | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| 22 | Sichuan Aichuang Science & Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Commodity purchased | Inverter integrated board | Marketing price | 16,847.00 | 16,847.00 | 0.89% | 20,000.00 | No | Spot exchange, Bank acceptance | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| 23 | Sichuan Service Exp. Appliance Service Chain Co., Ltd. | Other enterprise control under the same controlling | Commodity purchased | Filter element, etc | Marketing price | 0.18 | 0.18 | 0.00% | 8,000.00 | No | Cash settlement | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| shareholder and ultimate controller | ||||||||||||||
| 24 | Sichuan Aoku Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Commodity purchased | Inverter integrated board ，Electronic control components | Marketing price | 2,758.52 | 2,758.52 | 0.15% | 15000 | No | Spot exchange, Bank acceptance | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| 25 | Sichuan Changhong Electronics Holding Group Co., Ltd. | Controlling shareholder and ultimate controller | Accept labor service | Shuttle transportation fee, training fee | Marketing price | 283.47 | 283.46 | 0.16% | 15000 | No | Cash settlement | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| 26 | Sichuan Changhong Electric Co., Ltd. | Controlling shareholder | Accept labor service | Software usage fee, information consultation fee, inspection and certification fee | Marketing price | 388.67 | 388.67 | 0.22% | 10,000.00 | No | Cash settlement | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| 27 | 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 | 68,322.47 | 68,322.47 | 37.86% | 82,000.00 | No | Cash settlement | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| 28 | Sichuan Changhong Mold Plastic Tech. Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Accept labor service | commission processing fee，Change the mold service | Marketing price | 4,094.39 | 4,094.39 | 2.27% | 10000 | No | Spot exchange, Bank acceptance | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| 29 | 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 | 31,833.06 | 31,833.06 | 17.64% | 45,000.00 | No | Cash settlement | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| 30 | 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 service fee | Marketing price | 1,320.82 | 1,320.82 | 0.73% | 10000 | No | Cash settlement | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| 31 | 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 | 111.26 | 111.26 | 0.06% | 10000 | No | Cash settlement | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| 32 | 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 | 558.03 | 558.03 | 0.31% | 15000 | No | Cash settlement | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| 33 | Sichuan Changhong International Hotel Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Accept labor service | Meetings fee, accommodation，Travel service | Marketing price | 73.60 | 73.60 | 0.04% | 15000 | No | Cash settlement | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| 34 | Orion.PDP.Co.,ltd | Other enterprise control under the same controlling shareholder and ultimate controller | Accept labor service | Inspection and certification services | Marketing price | 5.01 | 5.01 | 0.00% | 15000 | No | Cash settlement | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| 35 | Sichuan Changhong Property Services Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Accept labor service | property management fees | Marketing price | 14.56 | 14.56 | 0.01% | 15000 | No | Cash settlement | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| 36 | Sichuan | Other enterprise | Accept labor | Training services | Marketing price | 0.69 | 0.69 | 0.00% | 10000 | No | Cash settlement | - | December 7, | Juchao Website |
| Hongwei Technology Co., Ltd. | control under the same controlling shareholder and ultimate controller | service | 2023,December 23, 2022,September 8, 2023,December 19,2023 | （www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. | ||||||||||
| 37 | Sichuan Zhiyijia Network Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Accept labor service | Design service fee and platform usage fee | Marketing price | 13.93 | 13.93 | 0.01% | 10000 | No | Cash settlement | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| 38 | Sichuan Changhong Network Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Accept labor service | Network maintenance services | Marketing price | 3.05 | 3.05 | 0.00% | 10000 | No | Cash settlement | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| 39 | Sichuan Changhong Intelligent Manufacturing Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Accept labor service | Consultation service | Marketing price | 9.43 | 9.43 | 0.01% | 15000 | No | Cash settlement | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| 40 | Sichuan Changhong Jijia Fine Co., Ltd. | Other enterprise control under the | Accept labor service | commission processing fee | Marketing price | 780.10 | 780.10 | 0.43% | 10000 | No | Bank acceptance | - | December 7, 2023,December 23, 2022,September 8, | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022- |
| same controlling shareholder and ultimate controller | 2023,December 19,2023 | 088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. | ||||||||||||
| 41 | Sichuan Changhong Gerun Environmental protection Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Accept labor service | Environmental protection service | Marketing price | 32.53 | 32.53 | 0.02% | 15000 | No | Cash settlement | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| 42 | Sichuan Changhong Electronic Products Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Accept labor service | Labor serves | Marketing price | 27.50 | 27.50 | 0.02% | 10000 | No | Cash settlement | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| 43 | Sichuan Aichuang Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate | Accept labor service | Technical service, warehouse management service | Marketing price | 137.13 | 137.13 | 0.08% | 15000 | No | Cash settlement | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| controller | ||||||||||||||
| 44 | Sichuan Ailian Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Accept labor service | Inspection and certification services | Marketing price | 1.08 | 1.08 | 0.00% | 15000 | No | Cash settlement | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| 45 | 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 | 990.12 | 990.12 | 0.55% | 15000 | No | Cash settlement | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| 46 | Sichuan Changhong Electric Co., Ltd. | Controlling shareholder | Sales of goods | Air conditioner, Kitchen and bathroom, small appliances | Marketing price | 225.21 | 225.21 | 0.01% | 1,500.00 | No | Spot exchange, Bank acceptance | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| 47 | Sichuan Changhong Electronics Holding Group Co., Ltd. | Controlling shareholder and ultimate controller | Sales of goods | Kitchen and bathroom, small appliances | Marketing price | 0.60 | 0.60 | 0.00% | 3,000.00 | No | Cash settlement | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| 48 | Sichuan Changhong Jijia Fine Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | Sales of goods | Air conditioner, and Refrigerator | 2.68 | 2.68 | 0.00% | 5,000.00 | No | Cash settlement | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| 49 | Sichuan Changhong Mold Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | Plastic pressure parts | Marketing price | 21.18 | 21.18 | 0.00% | 5000 | No | Cash settlement | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| 50 | Yigin Hongxing Electric Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | Air conditioners, | Marketing price | 8.67 | 8.67 | 0.00% | 3,000.00 | No | Cash settlement | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| 51 | Sichuan Zhiyijia Network TechNlogy 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 | 728,895.73 | 728,895.73 | 30.34% | 800,000.00 | No | Spot exchange, Bank acceptance | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| 52 | 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 | 79.93 | 79.93 | 0.00% | 5000 | No | Cash settlement | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| 53 | 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 | 654.81 | 654.81 | 0.03% | 5000 | No | Cash settlement | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| 54 | Sichuan Changhong Real Estate Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | Air conditioners, | Marketing price | 6.11 | 6.11 | 0.00% | 5000 | No | Cash settlement | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| 55 | Sichuan Changhong Property Service Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | Refrigeratior | Marketing price | 0.46 | 0.46 | 0.00% | 3,000.00 | No | Cash settlement | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| 56 | Guangdong Changhong | Other enterprise | Sales of goods | small appliances, Air conditioner | Marketing price | 20.78 | 20.78 | 0.00% | 5000 | No | Cash settlement | - | December 7, | Juchao Website |
| Electronics Co., Ltd. | control under the same controlling shareholder and ultimate controller | 2023,December 23, 2022,September 8, 2023,December 19,2023 | （www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. | |||||||||||
| 57 | Sichuan Changhong Intelligence Manufacturing Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | Refrigerators, freezers, and air-conditioners | Marketing price | 258.76 | 258.76 | 0.01% | 3,000.00 | No | Cash settlement | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| 58 | Sichuan Aoku Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | Refrigerator | Marketing price | 21.93 | 21.93 | 0.00% | 3,000.00 | No | Cash settlement | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| 59 | Sichuan Changhong Source Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | Air conditioner | Marketing price | 5.46 | 5.46 | 0.00% | 5000 | No | Cash settlement | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| 60 | Guangyuan Changhong Electronic Technology | Other enterprise control under the | Sales of goods | Air conditioner | Marketing price | 24.10 | 24.10 | 0.00% | 5000 | No | Cash settlement | - | December 7, 2023,December 23, 2022,September 8, | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022- |
| Co., Ltd. | same controlling shareholder and ultimate controller | 2023,December 19,2023 | 088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. | |||||||||||
| 61 | Sichuan Ailian Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | WIFI communication line | Marketing price | 0.78 | 0.78 | 0.00% | 3,000.00 | No | Cash settlement | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| 62 | Sichuan Jiahong Industry Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | Kitchen and bathroom, small appliances | Marketing price | 0.84 | 0.84 | 0.00% | 3,000.00 | No | Cash settlement | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| 63 | Sichuan Changhong Precision Electronics Tech. Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | Kitchen and bathroom | Marketing price | 1.08 | 1.08 | 0.00% | 5000 | No | Cash settlement | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| 64 | CHANGHONG(HK)TRADINGLIMITED | Other enterprise control under the same controlling | Sales of goods | Air conditioner and part | Marketing price | 69,999.52 | 69,999.52 | 2.91% | 150,000.00 | No | Cash settlement | - | December 7, 2023,December 23, 2022,September 8, 2023,December | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023- |
| shareholder and ultimate controller | 19,2023 | 044,2023-045,2023-047,2023-077,2023-078,2023-079. | ||||||||||||
| 65 | CHANGHONGELECTRIC(AUSTRALIA)PTY.LTD. | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | Refrigerator, freezers ,washing machine and part | Marketing price | 17,630.27 | 17,630.27 | 0.73% | 150000 | No | Cash settlement | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| 66 | Orion.PDP.Co.,ltd | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | Refrigerator | Marketing price | 4,478.34 | 4,478.34 | 0.19% | 6,500.00 | No | Cash settlement | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| 67 | ChanghongEuropeElectrics.r.o | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | Refrigerator | Marketing price | 10,299.23 | 10,299.23 | 0.43% | 10,300.00 | No | Cash settlement | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| 68 | Changhong International Holdings (Hong Kong) Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate | Sales of goods | Refrigerator, freezers, Air conditioner, kitchen utensils | Marketing price | 11,246.60 | 11,246.60 | 0.47% | 80,000.00 | No | Cash settlement | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| controller | ||||||||||||||
| 69 | Sichuan Aichuang Science & Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | IC | Marketing price | 407.43 | 407.43 | 0.02% | 3,000.00 | No | Cash settlement | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| 70 | Suchuan Hongmofang Network Service Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | Refrigerator | Marketing price | 6.06 | 6.06 | 0.00% | 5000 | No | Cash settlement | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| 71 | Sichuan Changhong Jiechuang Lithium Battery Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | Refrigerator | Marketing price | 114.78 | 114.78 | 0.00% | 3,000.00 | No | Cash settlement | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| 72 | Sichuan Ansifei Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | Print board components | Marketing price | 0.01 | 0.01 | 0.00% | 3,000.00 | No | Cash settlement | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| 73 | Sichuan Qiruike Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | IC | Marketing price | 0.27 | 0.27 | 0.00% | 3,000.00 | No | Cash settlement | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| 74 | Sichuan Qisai Microelectronics Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | Air conditioner | Marketing price | 4.99 | 4.99 | 0.00% | 3,000.00 | No | Cash settlement | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| 75 | Zhongjiu Shining Medical Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | Air conditioner | Marketing price | 14.57 | 14.57 | 0.00% | 3,000.00 | No | Cash settlement | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| 76 | Sichuan Qineng Zhongzheng Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | Air conditioner | Marketing price | 9.85 | 9.85 | 0.00% | 3,000.00 | No | Cash settlement | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| 77 | Sichuan Changhong Electronics Holding Group Co., Ltd. | Controlling shareholder and ultimate controller | Providing services | Installation service | Marketing price | 0.67 | 0.67 | 0.01% | 3,000.00 | No | Cash settlement | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| 78 | Sichuan Changhong Mold Plastic Tech. Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Providing services | Labor service | Marketing price | 139.00 | 139.00 | 2.35% | 500 | No | Cash settlement | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| 79 | Sichuan Changhong Jijia Fine Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Providing services | Labor service | Marketing price | 12.75 | 12.75 | 0.22% | 500 | No | Spot exchange, Bank acceptance | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| 80 | Sichuan Aichuang Science & Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Providing services | Labor service | Marketing price | 474.35 | 474.35 | 8.01% | 3,000.00 | No | Cash settlement | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| 81 | Sichuan Huafeng | Other enterprise control | Providing services | Labor service | Marketing price | 46.42 | 46.42 | 0.78% | 3,000.00 | No | Cash settlement | - | December 7, 2023,December 23, | Juchao Website（www.cninfo.com.cn） |
| Technology Co., Ltd. | under the same controlling shareholder and ultimate controller | 2022,September 8, 2023,December 19,2023 | Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. | |||||||||||
| 82 | Sichuan Zhiyijia Network Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Providing services | Service fee | Marketing price | 18.54 | 18.54 | 0.31% | 10000 | No | Cash settlement | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| 83 | Sichuan Changhong Electric Co., Ltd. | Controlling shareholder | Providing services | Labor service | Marketing price | 1,139.57 | 1,139.57 | 19.25% | 10000 | No | Cash settlement | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| 84 | Sichuan Changhong Device Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Providing services | Technical service fee | Marketing price | 12.40 | 12.40 | 0.21% | 10000 | No | Cash settlement | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| 85 | Sichuan Changhong Network Technology | Other enterprise control under the same controlling | Providing services | Installation service, maintenance service | Marketing price | 26.80 | 26.80 | 0.45% | 10000 | No | Cash settlement | - | December 7, 2023,December 23, 2022,September 8, 2023,December | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023- |
| Co., Ltd. | shareholder and ultimate controller | 19,2023 | 044,2023-045,2023-047,2023-077,2023-078,2023-079. | |||||||||||
| 86 | Mianyang Huafeng Hulian Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Providing services | Repair Service | Marketing price | 34.98 | 34.98 | 0.59% | 3,000.00 | No | Cash settlement | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| 87 | Changhong Huayi Compressor Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Providing services | Labor service | Marketing price | 134.40 | 134.40 | 2.27% | 500 | No | Cash settlement | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| 88 | Sichuan Changhong Minsheng Logistics Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Providing services | Labor service | Marketing price | 37.90 | 37.90 | 0.64% | 10000 | No | Cash settlement | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| 89 | Hefei Changhong Industry Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate | Providing services | Labor service | Marketing price | 0.00 | 0.00 | 0.00% | 10000 | No | Cash settlement | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| controller | ||||||||||||||
| 90 | Sichuan Service Exp. Appliance Service Chain Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Providing services | Labor service | Marketing price | 231.55 | 231.55 | 3.91% | 10000 | No | Cash settlement | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| 91 | Sichuan Aoku Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Providing services | Labor service | Marketing price | 0.45 | 0.45 | 0.01% | 3,000.00 | No | Cash settlement | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| 92 | Sichuan Changhong International Hotel Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Providing services | Maintenance fees | Marketing price | 6.57 | 6.57 | 0.11% | 3,000.00 | No | Cash settlement | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| 93 | Sichuan Chonghong Network Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Providing services | Labor service | Marketing price | 12.87 | 12.87 | 0.22% | 10000 | No | Cash settlement | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| 94 | Sichuan Changhong Electronic Products Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | provide labor | Labor service | Marketing price | 0.72 | 0.72 | 0.01% | 10000 | No | Cash settlement | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| 95 | Sichuan Qiruike Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Providing services | Labor service | Marketing price | 9.57 | 9.57 | 0.16% | 3,000.00 | No | Cash settlement | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| 96 | Sichuan Changhong Precision Electronics Technology Co., Ltd | Other enterprise control under the same controlling shareholder and ultimate controller | Providing services | Labor service | Marketing price | 0.43 | 0.43 | 0.01% | 10000 | No | Cash settlement | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| 97 | Sichuan Qineng Zhongzheng Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate | Providing services | Installation service | Marketing price | 10.89 | 10.89 | 0.18% | 3,000.00 | No | Cash settlement | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| controller | ||||||||||||||
| 98 | Yuanxin Finance Lease Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Providing services | Consultation service | Marketing price | 90.78 | 90.78 | 1.53% | 10000 | No | Cash settlement | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| 99 | Sichuan Changhong Property Service Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Providing services | Technical service fee | Marketing price | 25.90 | 25.90 | 0.44% | 3,000.00 | No | Cash settlement | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| 100 | Sichuan Changhong Real Estate Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Providing services | Installation service | Marketing price | 4.60 | 4.60 | 0.08% | 10000 | No | Cash settlement | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| 101 | Sichuan Changhong Jiechuang Lithium Battery Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Providing services | Installation service, Labor service | Marketing price | 227.77 | 227.77 | 3.85% | 3,000.00 | No | Cash settlement | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| 102 | Sichuan Hongwei TechNlogy Co.,Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Providing services | Technical service fee | Marketing price | 6.97 | 6.97 | 0.12% | 10000 | No | Cash settlement | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| 103 | Guangdong Changhong Electronics Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Providing services | Labor service | Marketing price | 62.74 | 62.74 | 1.06% | 10000 | No | Cash settlement | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| 104 | Sichuan Qisai Microelectronics Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Providing services | Installation service | Marketing price | 4.46 | 4.46 | 0.08% | 3,000.00 | No | Cash settlement | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| 105 | Sichuan Changhong Device Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | Water, electricity, and compressed air | Marketing price | 14.81 | 14.81 | 0.00% | 5000 | No | Cash settlement | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| 106 | Hefei Changhong | Other enterprise | Rent to the | Rental apartment, warehouses | Marketing price | 15.98 | 15.98 | 0.12% | 4,000.00 | No | Cash settlement | - | December 7, | Juchao Website |
| Industrial Co., Ltd. | control under the same controlling shareholder and ultimate controller | related party | 2023,December 23, 2022,September 8, 2023,December 19,2023 | （www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. | ||||||||||
| 107 | Sichuan Aichuang Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Rent to the related party | Warehouse for rent | Marketing price | 4.86 | 4.86 | 0.04% | 3,000.00 | No | Cash settlement | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| 108 | 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 | 0.35 | 0.35 | 0.00% | 3,000.00 | No | Cash settlement | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| 109 | 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 | 4.34 | 4.34 | 0.03% | 3,000.00 | No | Cash settlement | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| 110 | Sichuan Hongxin Software Co., Ltd. | Other enterprise control under the | Rent to the related party | Rental apartment | Marketing price | 0.44 | 0.44 | 0.00% | 4000 | No | Cash settlement | - | December 7, 2023,December 23, 2022,September 8, | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022- |
| same controlling shareholder and ultimate controller | 2023,December 19,2023 | 088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. | ||||||||||||
| 111 | 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 | Marketing price | 16.24 | 16.24 | 0.12% | 4000 | No | Cash settlement | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| 112 | Sichuan Qiruik 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 | 0.04% | 3,000.00 | No | Cash settlement | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| 113 | Sichuan Changhong Electric Co., Ltd. | Controlling shareholder | Rent to the related party | Lease of factory, equipment | Marketing price | 80.70 | 80.70 | 0.60% | 4000 | No | Cash settlement | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| 114 | Sichuan Changhong Electronics Holding Group Co., | Controlling shareholder and ultimate controller | Lease from related parties | Lease of factory | Marketing price | 0.00 | 0.00 | 0.00% | 3,000.00 | No | Cash settlement | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023- |
| Ltd. | 077,2023-078,2023-079. | |||||||||||||
| 115 | 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 | 462.10 | 462.10 | 3.44% | 4000 | No | Cash settlement | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| 116 | Sichuan Changhong Precision Electronics Tech. Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Rent to the related party | Rental apartment | Marketing price | 6.83 | 6.83 | 0.05% | 4000 | No | Cash settlement | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| 117 | Sichuan Changhong Minsheng Logistics Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Rent to the related party | Rental apartment, office, factory | Marketing price | 25.96 | 25.96 | 0.19% | 4000 | No | Cash settlement | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| 118 | Sichuan Changhong Mold Plastic Tech. Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Rent to the related party | Serviced apartment, warehouse, workshop, equipment and living quarters | Marketing price | 933.88 | 933.88 | 6.94% | 4000 | No | Cash settlement | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| 119 | 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 | 214.71 | 214.71 | 1.60% | 4000 | No | Cash settlement | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| 120 | 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 | 18.83 | 18.83 | 0.14% | 4000 | No | Cash settlement | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| 121 | Changhong Huayi Compression Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Rent to the related party | Warehouse for rent | Marketing price | 1.06 | 1.06 | 0.01% | 500 | No | Cash settlement | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| 122 | 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 | 85.70 | 85.70 | 0.64% | 4000 | No | Cash settlement | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| 123 | Guangdong Changhong | Other enterprise | Leasing from | Lease of staff dormitory, plant | Marketing price | 14.54 | 14.54 | 0.11% | 4000 | No | Cash settlement | - | December 7, | Juchao Website |
| Electronics Co., Ltd. | control under the same controlling shareholder and ultimate controller | related party | 2023,December 23, 2022,September 8, 2023,December 19,2023 | （www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. | ||||||||||
| 124 | Hefei Changhong Industrial Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Leasing from related party | lease of plant | Marketing price | 217.35 | 217.35 | 1.62% | 4000 | No | Cash settlement | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| 125 | 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 | 43.18 | 43.18 | 0.32% | 15000 | No | Cash settlement | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| 126 | Sichuan Changhong Electric Co., Ltd. | Controlling shareholder | Leasing from related party | Lease of laboratory and workshop | Marketing price | 372.13 | 372.13 | 2.77% | 4000 | No | Cash settlement | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| 127 | Sichuan Changhong Electronics Holding Group Co., | Controlling shareholder and ultimate controller | Leasing from related party | Lease of staff dormitory | Marketing price | 14.33 | 14.33 | 0.11% | 15000 | No | Cash settlement | - | December 7, 2023,December 23, 2022,September 8, 2023,December | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022- |
| Ltd. | 19,2023 | 088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. | ||||||||||||
| 128 | Changhong Huayi Compression Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Rent to the related party | Lease of staff dormitory | Marketing price | 11.58 | 11.58 | 0.09% | 54000 | No | Cash settlement | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| 129 | Sichuan Changhong Intelligent Manufacturing Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Purchase and construction of fixed assets | Information management system project | Marketing price | 210.04 | 210.04 | 0.74% | 3000 | No | Spot exchange, Bank acceptance | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| 130 | Sichuan Changhong Electric Co., Ltd. | Controlling shareholder | Leasing from related party | Lease of laboratory and workshop | Marketing price | 42.86 | 42.86 | 0.15% | 2,000.00 | No | Cash settlement | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| 131 | Sichuan Hongxin Software Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate | Purchase and construction of fixed assets | Knowledge management, integration and functional improvement projects | Marketing price | 306.14 | 306.14 | 1.08% | 2000 | No | Cash settlement | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| controller | ||||||||||||||
| 132 | Sichuan Hongxin Software Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Purchase Intangible assets | Information management | Marketing price | 319.30 | 319.30 | 1.13% | 2000 | No | Cash settlement | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| 133 | Sichuan Zhiyijia Network Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Purchase of fixed assets | TV | Marketing price | 4.05 | 4.05 | 0.01% | 2000 | No | Cash settlement | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| 134 | Sichuan Changhong Electronics Holding Group Co., Ltd. | Controlling shareholder and ultimate controller | Purchase of fixed assets | New plant construction project | Marketing price | 169.81 | 169.81 | 0.60% | 15000 | No | Cash settlement | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| 135 | Sichuan Changhong Jiahua Information Co., ltd. | Other enterprise control under the same controlling shareholder and ultimate | Purchase fixed assets | Information management | Marketing price | 27.58 | 27.58 | 0.10% | 2000 | No | Cash settlement | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| controller | ||||||||||||||
| 136 | Sichuan Qiruik Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Purchase of fixed assets | Information management | Marketing price | 28.80 | 28.80 | 0.10% | 15000 | No | Cash settlement | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. |
| 137 | Yuanxin Financial Lease Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Financing business | Financing business | Marketing price | 47,232.36 | 47,232.36 | 82,000.00 | No | Cash settlement | - | December 7, 2023,December 23, 2022,September 8, 2023,December 19,2023 | Juchao Website（www.cninfo.com.cn）Announcement No.:2022-087,2022-088,2022-089,2022-100,2023-044,2023-045,2023-047,2023-077,2023-078,2023-079. | |
| Total | -- | -- | 1,273,229.01 | -- | -- | -- | -- | -- | -- | -- | ||||
| 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 2023 was 2785 million yuan at most (tax-excluded), actually 1,851.6481 million yuan occurred in reporting period. | |||||||||||||
| 2. It is estimated that the related transaction amount resulted by purchasing compressors, Sell goods, accept or provide services with Changhong Huayi and its subsidiary by the Company for year of 2023 was 545 million yuan at most (tax-excluded), actually 565.0808 million yuan occurred in reporting period. In 2023, the total amount of related party transactions between the Company and Sichuan Changhong and its subsidiaries (including Changhong Huayi and its subsidiaries) is estimated to be no more than 16,058,000,000 yuan, and the actual amount incurred is 12,398,976,900 yuan, and the actual total amount of routine related party transactions between the Company and Sichuan Changhong and its subsidiaries (including Changhong Huayi and its subsidiaries) does not exceed the estimated total amount, which is in line with the regulations of Article 25 of "Self-Regulatory Guidelines for Listed Companies on the Shenzhen Stock Exchange No. 7-Transactions and Related Party Transactions". | ||||||||||||||
| 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 2023 was 20 million yuan at most (tax-excluded), actually 6.9993 million 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 2023 was 10,468 million yuan at most (tax-excluded), actually 8,391.3356 million 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 2023 was 40 million yuan at most (tax-excluded), actually 24.6539 million 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 2023 was 820 million yuan at most (tax-excluded), actually 683.2247 million 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 2023 was 450 million yuan at most actually 318.3306 million 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 2023 was 110 million yuan at most (tax-excluded), actually 85.3803 million 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 2023 was 95 million yuan at most (tax-excluded), actually 61.8979 million 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 2023 was 430 million yuan at most (tax-excluded), actually 271.4154 million 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 472.3236 million 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
| Co-investor | Association | Name of the invested enterprise | Main business of the invested enterprise | Registered capital of the invested enterprise | Total assets of the invested enterprise (RMB '0,000) | Net assets of the invested enterprise (RMB '0,000) | Net profit of the invested enterprise (RMB '0,000) |
| Sichuan Changhong Electronic (Group) Co., Ltd., Sichuan Changhong Electric Co.,Ltd., Sichuan Shenwan Hongyuan Changhong Equity Investment Management Co., Ltd., Guangdong Changhong Electronics Co., Ltd., Sichuan Qiruike Technology Co., Ltd., Sichuan Changhong Power Supply Co., Ltd., Sichuan Changhong New Energy Technology Co., Ltd., Changhong Sanjie New Energy Co., Ltd., Sichuan Changhong Green Environmental Science and Technology Co., Ltd., Yibin Red-star Electronics Co., Ltd., Sichuan Changhong Digital Technology Co., Ltd., and Changhong Huayi Compressor Co.,Ltd. | Controlling shareholder and ultimate controller, other enterprises controlled by the same controlling shareholder and ultimate controller, and listed companies with natural persons as directors | Changhong Group Sichuan Shenwan Hongyuan Strategic New Industry Parent Fund Partnership (Limited Partnership) | Engagement in equity investment, investment management, asset management and other activities with private equity funds (registration and filing must be completed in Asset Management Association of China before the engagement in business activities). | 1,500 million yuan | 51,634.69 | 51,514.91 | -137.78 |
| Sichuan Hongyun Venture Equity Investment Maqnagement Co., Ltd., Sichuan Changhong Electronics Holding Group Co., Ltd., Sichuan Changhong Electric Co., Ltd. | For controlling shareholder and | Sichuan Hongyun Venture Capital Partnership (Limited | General items: venture capital (limited to | 148 million | 5,935.54 | 5,935.54 | 15.54 |
| ultimate controller | partnership) | unlisted enterprises). (Except for items that are subject to approval according to law, business activities shall be independently carried out according to law by virtue of business license. | ||
| Accumulated amount of other litigation that does not meet the disclosure standard of major litigation（If any） | No | |||
Note: Sichuan Hongyun Venture Capital Partnership is jointly established by the related parties Changhong Group,Sichuan Changhong and unrelated party Sichuan Hongyun Venture Equity Investment Management Co., Ltd. andthe Company. For details, please refer to the relevant announcement disclosed by the Company in the designatedinformation disclosure media Securities Times, China Securities Journal and CNINF (www.cninfo.com.cn) onJanuary 17, 2023.(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 enterprises controlled by the same controlling shareholder and | 450,000.00 | 0.42%-3.50% | 346,499.99 | 4,552,002.03 | 4,465,753.05 | 432,748.97 |
ultimate controller
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 enterprises controlled by the same controlling shareholder and ultimate controller | Other financial services - note issuance | 300,000.00 | 89,175.08 |
| Sichuan Changhong Group Finance Co., Ltd. | Other enterprises controlled by the same controlling shareholder and ultimate controller | Other financial services - note discounting | 300,000.00 | 74,017.06 |
| Sichuan Changhong Group Finance Co., Ltd. | Other enterprises controlled by the same controlling shareholder and ultimate controller | Other financial services - note discounting | 600,000.00 | 340.72 |
Note 1: As of December 31,2023, registered capital of Changhong Finance Company is 2,693,938,365.84 yuan. TheCompany and Changhong Huayi holds 14.96% equity of Chonghong Finance Company respectively, andcontrolling shareholder of the Company -Sichuan Changhong Electric Co., Ltd and its controlling shareholderSichuan Changhong Electronics Holding Group Co., Ltd holds 35.04% equity of Changhong Finance Companyrespectively.Note 2: After deliberated and approved by the 35th session of 9
th
BOD and 2
th
extraordinary shareholders generalmeeting of 2020 held on 16 October 2023 and 3 November , it is agreed to continue the financial servicescooperation between the Company and Changhong Finance Company and renew the “Financial Service Agreement”for a period of three years. Changhong Finance Company will provides a series of financial services such as depositand loans within scope of operation according to the requirements of Company and its subsidiaries(ExcludingZhongke Meiling and its subsidiaries).(vi) Transactions between the finance company controlled by the Company and related parties
□ Applicable √ Not applicable
(vii) Other related party transactions
√ Applicable □ Not applicable
1. On September 7, 2023, after review and approval at the 34th meeting of the Tenth Board of Directors and the25th meeting of the Tenth Board of Supervisors, it was agreed to extend the duration of Sichuan Hongyun NewGeneration of Information Technology Venture Capital Fund Partnership (Limited Partnership) for one year (thespecific expiration date is subject to the industrial and commercial registration) (referred to as "Hongyun Fund PhaseI" for short), that is, the cumulative duration of such fund after this extension is 9 years, and it was agreed that theCompany and other partners signed the Amendment to the Partnership Agreement of Sichuan Hongyun NewGeneration of Information Technology Venture Capital Fund Partnership (Limited Partnership).
2. On September 7, 2023, it was reviewed and approved by the 34th meeting of the Tenth Board of Directors andthe 25th meeting of the Tenth Board of Supervisors, and it was agreed that the amount of daily related transactions
between the Company and its subsidiaries and Changhong Group and its subsidiaries on purchase of commoditiesand raw materials in 2023 should not exceed RMB 25 million (excluding tax); It was estimated that the amount ofdaily related transactions between the Company and its subsidiaries and Sichuan Changhong Electronic ComponentCo., Ltd. (hereinafter referred to as "Electronic Component Company") in 2023 would not exceed RMB 10 million(excluding tax). After this increase estimation, the total amount of daily related transactions between the Companyand its subsidiaries and Changhong Group (excluding Sichuan Changhong) would not exceed RMB 450 million(excluding tax), and the total amount of daily related transactions with Sichuan Changhong and its subsidiaries(excluding Changhong Huayi, but including Electronic Component Company, etc.) would not exceed RMB 15.51billion (excluding tax).
3. On October 16, 2023 and November 3, 2023, after review and approval by the 35th meeting of the Tenth Boardof Directors, the 26th meeting of the Tenth Board of Supervisors and the Second Extraordinary General Meetingof Shareholders in 2023, it was agreed that the Financial Service Agreement between the Company and ChanghongFinance Company would be renewed for another three years, and it was agreed that maximum deposit balance(including accrued interest and handling fee) and the maximum outstanding loan principal and interest of theCompany and its subsidiaries (excluding Zhongke Meiling and its subsidiaries) in Changhong Finance Companywould not exceed RMB 4.5 billion per day within the three-year validity period from the effective date of the newagreement.
4. On April 4, 2023 and December 21, 2023, after review and approval at the 37th meeting of the Tenth Board ofDirectors, the 28th meeting of the Tenth Board of Supervisors and the Third Extraordinary General Meeting ofShareholders in 2023, it was agreed the total amount of daily related transactions between the Company and itssubsidiaries and related parties in 2024 would not exceed RMB 18,822 million (excluding tax); It was agreed thatthe Company and Sichuan Changhong Group Finance Co., Ltd. would continue to carry out related transactions offinancial services such as deposits and loans in 2024.
5. On December 18, 2023, it was reviewed and approved by the 38th meeting of the Tenth Board of Directors andthe 29th meeting of the Tenth Board of Supervisors, and it was agreed that the amount of daily related transactionsbetween the Company and its holding subsidiaries and Changhong Group and its subsidiaries on purchase ofcommodities and raw materials in 2023 should not exceed RMB 75 million (excluding tax). After this increaseestimation, the total amount of daily related transactions between the Company and its subsidiaries and ChanghongGroup (excluding Sichuan Changhong) in 2023 would not exceed RMB 525 million.Related searches for disclosure website of interim report with major related transaction concerned
| Interim report | Disclosure date | Website for disclosure |
| Resolution Notice of the 34th session of 10thBOD (2023-044) Resolution Notice of the 25th session of 10thBOS (2023-045) Announcement on Extension and Related Transactions of Sichuan Hongyun New Generation of Information Technology Venture Capital Fund Partnership (Limited Partnership)（2023-046） | September 8,2023 | Juchao Website www.cninfo.com.cn |
| Resolution Notice of the 34th session of 10thBOD (2023-044) Resolution Notice of the 25th session of 10thBOS (2023-045) Announcement on Increasing the Daily Related Party Transactions in | September 8,2023 | Juchao Website www.cninfo.com.cn |
| 2023（2023-047） | ||
| Resolution Notice of the 35th session of 10thBOD (2023-053) Resolution Notice of the 26th session of 10thBOS (2023-053) Announcement on Renewing the Financial Services Agreement and Related Transactions with Sichuan Changhong Group Finance Co., Ltd.（2023-054） Resolution Notice of Second extraordinary general meeting of 2023 (2023-065) | October 18,2023, November 4,2023 | Juchao Website www.cninfo.com.cn |
| Resolution Notice of the 37th session of 10thBOD (2023-066) Resolution Notice of the 28th session of 10thBOS (2023-067) Announcement on the daily related transactions of 2024（2023-068） Notice on Expected Continuing Related Transactions with Sichuan Changhong Group Finance Company in 2024 (2023-069) Resolution Notice of Fourth extraordinary general meeting of 2022 Notice on Expected Continuing Related Transactions with Sichuan Changhong Group Finance Company in 2023 (2022-90) Resolution Notice of Third extraordinary general meeting of 2023 (2023-080) | December 5,2023, December 22, 2023 | Juchao Website www.cninfo.com.cn |
| Resolution Notice of the 38th session of 10thBOD (2023-077) Resolution Notice of the 29th session of 10thBOS (2023-078) Increase the forecast announcement of daily related party transactions for year of 2023 (2023-079) | December 19,2023 | Juchao Website www.cninfo.com.cn |
XV. 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
No leasing in the period(ii) Major guarantee
√ Applicable □ Not applicable
In RMB 10,000
| 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 |
| Zhongshan Changhong Electric Co., Ltd. | Announcement No.: 2021-091,2021-092,2021-096,2021-109 released on December 7,2021 and December 24, 2021 | 140,000.00 | March 10,2022 | 2,000.00 | Joint liability guaranty | N/A | Yes | 1 year | Yes | No |
| March 28,2022 | 7,000.00 | Joint liability guaranty | Yes | 1 year | Yes | No | ||||
| April 22,2022 | 18,000.00 | Joint liability guaranty | Yes | 1 year | Yes | No | ||||
| May 6,2022 | 6,000.00 | Joint liability guaranty | Yes | 1 year | Yes | No | ||||
| June 10,2022 | 10,000.00 | Joint liability guaranty | Yes | 1 year | Yes | No | ||||
| June 25,2022 | 13,000.00 | Joint liability guaranty | Yes | 1 year | Yes | No | ||||
| July 2,2022 | 20,000.00 | Joint liability guaranty | Yes | 1 year | Yes | No | |||
| August 19,2022 | 5,000.00 | Joint liability guaranty | Yes | 1 year | Yes | No | |||
| October 11,2022 | 15,000.00 | Joint liability guaranty | Yes | 1 year | No | No | |||
| Announcement No.: 2022-087,2022-088, 2022-091 and 2022-100 released on December 7,2022 and December 23,2022 | 150,000.00 | April 7,2023 | 6,000.00 | Joint liability guaranty | Yes | 1 year | No | No | |
| April 24,2023 | 10,000.00 | Joint liability guaranty | Yes | 1 year | No | No | |||
| June 8,2023 | 10,000.00 | Joint liability guaranty | Yes | 1 year | No | No | |||
| June 27,2023 | 7,000.00 | Joint liability guaranty | Yes | 1 year | No | No | |||
| July 4,2023 | 10,000.00 | Joint liability guaranty | Yes | 1 year | No | No | |||
| July 10,2023 | 20,000.00 | Joint liability guaranty | Yes | 1 year | No | No | |||
| July 28,2023 | 5,000.00 | Joint liability guaranty | Yes | 1 year | No | No | |||
| August 29,2023 | 15,000.00 | Joint liability guaranty | Yes | 1 year | No | No | |||
| November 2,2023 | 5,000.00 | Joint liability guaranty | Yes | 1 year | No | No | |||
| Announcember No.: 2023-066,2023-067,2023-070,2023-080 released on December 5,2023 and December | 130,000.00 | - | - | - | - | - | - | - |
| 22, 2023 | ||||||||||
| Changhong MeilingRidian Technology Co., Ltd. | Announcement No.: 2021-091,2021-092,2021-096,2021-109 released on December 7, 2021, December 24,2021,December 24,2021 | 16,000.00 | June 6,2022 | 3,000.00 | Joint liability guaranty | Yes | 1 year | Yes | No | |
| July 7,2022 | 4,000.00 | Joint liability guaranty | Yes | 1 year | Yes | No | ||||
| October 25,2022 | 2,000.00 | Joint liability guaranty | Yes | 1 year | Yes | No | ||||
| December 8,2022 | 3,500.00 | Joint liability guaranty | Yes | 11.2 months | No | No | ||||
| Announcement No.: 2022-087,2022-088,2022-091,2022-100 released on December 7,2022 December 23, 2022 | 16,000.00 | July 10,2023 | 4,000.00 | Joint liability guaranty | Yes | 1 year | No | No | ||
| Announcement No.: 2023-066,2023-067,2023-07, 2023-080 released on December 5,2023, December 22, 2023 | 14,500.00 | - | - | - | - | - | - | - | ||
| ZhongkeMeiling Cryogenic Technology Co., Ltd. | Announcement No.: 2021-091,2021-092,2021-096,2021-109 released on December 7, 2021, December 24, 2021 | 26,000.00 | September 20,2022 | 2,000.00 | Joint liability guaranty | Yes | 4.5 months | Yes | No | |
| November 14,2022 | 5,000.00 | Joint liability guaranty | Yes | 7.2 months | Yes | No | ||||
| Announcember No.: 2022-087,2022- | 20,000.00 | - | - | - | - | - | - | - |
| 088,2022-091,2022-100 released on December 7, 2022, December 23, 2022 | ||||||||||
| Announcember No.: 2023-066,2023-067,2023-070,2023-80 released on December 5, 2023, December 22, 2023 | 10,000.00 | - | - | - | - | - | - | - | ||
| Sichuan Changhong Air-conditioner Co., Ltd. | Announcember No.: 2020-097,2020-098,2020-101,2020-107 released on December 12, 2020, December 30,2020 | 100,000.00 | September 24,2021 | 5,000.00 | Joint liability guaranty | Yes | 1 year | Yes | No | |
| December 7,2021 | 15,000.00 | Joint liability guaranty | Yes | 1 year | Yes | No | ||||
| Announcember No.: 2021-091,2021-092,2021-096,2021-109 released on December 7, 2021, December 24, 2021 | 100,000.00 | March 18,2022 | 8,000.00 | Joint liability guaranty | Yes | 1 year | Yes | No | ||
| April 18,2022 | 30,000.00 | Joint liability guaranty | Yes | 1 year | Yes | No | ||||
| Announcember No.: 2022-087,2022-088,2022-091,2022-100 released on December 7, 2022, December 23, 2022 | 250,000.00 | January 17,2023 | 10,000.00 | Joint liability guaranty | Yes | 9 months | No | No | ||
| January 17,2023 | 5,000.00 | Joint liability guaranty | Yes | 1 year | No | No | ||||
| February 27,2023 | 16,000.00 | Joint liability guaranty | Yes | 1 year | No | No | ||||
| March 16,2023 | 30,000.00 | Joint liability | Yes | 1 year | No | No |
| guaranty | ||||||||||
| March 24,2023 | 60,000.00 | Joint liability guaranty | Yes | 1 year | No | No | ||||
| April 14,2023 | 12,000.00 | Joint liability guaranty | Yes | 1 year | No | No | ||||
| June 28,2023 | 3,500.00 | Joint liability guaranty | Yes | 6 months | Yes | No | ||||
| July 5,2023 | 1,500.00 | Joint liability guaranty | Yes | 5.4 months | No | No | ||||
| Announcember No.: 2023-066,2023-067,2023-070,2023-080 released on December 5,2023, December 22, 2023 | 262,000.00 | - | - | - | - | - | - | - | ||
| Changhong RUBA Trade Company | Announcember No.: 2022-036,2022-037,2022-049 released on May 18, 2022, June 30,2022 | 5,955.93 note1 | - | - | - | - | - | - | - | |
| Jiangxi Meiling Electric Appliance Co., Ltd. | Announcember No.: 2022-087,2022-088,2022-091,2022-100 released on December 7, 2022, December 23, 2022 | 15,000.00 | - | - | - | - | - | - | - | |
| Announcember No.: 2023-066,2023-067,2023-070,2023-080 | 15,000.00 | - | - | - | - | - | - | - |
| released on December 5, 2023, December 22, 2023 | ||||||||||
| Hefei Meiling Nonferrous Metal Products Co., Ltd. | Announcember No.: 2022-087,2022-088,2022-091,2022-100 released on December 7, 2022, December 23, 2022 | 3,000.00 | - | - | - | - | - | - | - | |
| Announcember No.: 2023-066,2023-067,2023-070,2023-080 released on December 5, 2023, December 22, 2023 | 3,000.00 | - | - | - | - | - | - | - | ||
| Hefei Meiling Group Holdings Limited | Announcember No.: 2021-091,2021-092,2021-096,2021-109 released on December 7, 2021, December 24, 2021 | 40,000.00 | April 18,2022 | 5,000.00 | Joint liability guaranty | Yes | 1 year | Yes | No | |
| Announcember No.: 2022-087,2022-088,2022-091,2022-100 released on December 7, 2022, December 23, 2022 | 60,000.00 | May 11,2023 | 4,500.00 | Joint liability guaranty | Yes | 1 year | No | No | ||
| July 12,2023 | 8,000.00 | Joint liability guaranty | Yes | 1 year | No | No | ||||
| Announcember No.: 2023-066,2023- | 25,000.00 | - | - | - | - | - | - | - |
| 067,2023-070,2023-080 released on December 5, 2023, December 22, 2023 | ||||||||||
| Hefei Changhong Meiling Life Appliances Co., Ltd. | Announcement No.: 2021-008,2021-009,2021-011 and 2021-034 released on March 3, 2021 and April 29, 2021 | 35,000.00 | December 9,2021 | 4,000.00 | Joint liability guaranty | Yes | 11 monghs | Yes | No | |
| Announcement No.: 2021-091,2021-092,2021-096 and 2021-109 released on December 7, 2021 and December 24, 2021 | 35,000.00 | January 26,2022 | 3,000.00 | Joint liability guaranty | Yes | 1 year | Yes | No | ||
| March 17,2022 | 5,000.00 | Joint liability guaranty | Yes | 1 year | Yes | No | ||||
| August 25,2022 | 500.00 | Joint liability guaranty | Yes | 1 year | Yes | No | ||||
| September 8,2022 | 1,000.00 | Joint liability guaranty | Yes | 1 year | Yes | No | ||||
| September 22,2022 | 5,000.00 | Joint liability guaranty | Yes | 1 year | Yes | No | ||||
| November 21,2022 | 5,000.00 | Joint liability guaranty | Yes | 1 year | No | No | ||||
| December 8,2022 | 4,500.00 | Joint liability guaranty | Yes | 10.5 months | Yes | No | ||||
| Announcement No.: 2022-087,2022-088,2022-091 and 2022-100 released on December 7, 2022 and | 35,000.00 | February 22,2023 | 8,000.00 | Joint liability guaranty | Yes | 11 months | No | No | ||
| April 24,2023 | 2,000.00 | Joint liability guaranty | Yes | 1 year | No | No | ||||
| May 4,2023 | 5,000.00 | Joint liability | Yes | 1 year | No | No |
| December 23, 2022 | guaranty | |||||||||
| November 3,2023 | 2,000.00 | Joint liability guaranty | Yes | 1 year | No | No | ||||
| December 1,2023 | 10,000.00 | Joint liability guaranty | Yes | 1 year | No | No | ||||
| December 15,2023 | 4,000.00 | Joint liability guaranty | Yes | 5.7 months | No | No | ||||
| Announcember No.: 2023-040，2023-041，2023-043，2023-065 released on August 18, 2023, November 4, 2023 | 8,000.00 | - | - | - | - | - | - | - | ||
| Announcember No.: 2023-066,2023-067,2023-070,2023-080 released on December 5, 2023, December 22, 2023 | 50,000.00 | - | - | - | - | - | - | - | ||
| Total amount of approving guarantee for subsidiaries in report period (B1) | 517,500.00 | Total amount of actual occurred guarantee for subsidiaries in report period (B2) | 480,000.00 | |||||||
| Total amount of approved guarantee for subsidiaries at the end of reporting period (B3) | 1,219,500.00 | Total balance of actual guarantee for subsidiaries at the end of reporting period (B4) | 293,500.00 | |||||||
| 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 applicable) | Guarantee term | Complete implementation or not | Guarantee for related party |
| Anhui Touxing Technology Co., Ltd. | Announcement No.: 2021-091,2021-092 and 2021-096,2021-109 released on December 7, 2021 and December 24, 2021 | 5,000.00 | June 27,2022 | 500.00 | Joint liability guaranty | 1 year | Yes | No | ||
| Announcement No.: 2022-087,2022-088,2022-091 and 2022-100 released on December 7, 2022 and December 23, 2022 | 8,000.00 | June 20,2023 | 1,000.00 | Joint liability guaranty | 1year | No | No | |||
| August 15,2023 | 400.00 | Joint liability guaranty | 1 year | No | No | |||||
| October 20,2023 | 1,000.00 | Joint liability guaranty | 1 year | No | No | |||||
| Announcember No.: 2023-066,2023-067,2023-070,2023-080 released on December 5, 2023, December 22, 2023 | 5,000.00 | - | - | - | - | - | - | - | ||
| Anhui Ling'an Medical Equipment Co., Ltd | Announcement No.: 2022-087,2022-088,2022-091 and 2022-100 released on December 7, 2022 and December 23, 2022 | 12,000.00 | August 25,2023 | 1,000.00 | Joint liability guaranty | 1 year | No | No | ||
| October 20,2023 | 1,000.00 | Joint liability guaranty | 1 year | No | No | |||||
| Announcember No.: 2023-066,2023-067,2023-070,2023-080 released on December 5, 2023, December 22, | 10,000.00 | - | - | - | - | - | - | - |
| 2023 | ||||||
| Total amount of approving guarantee for subsidiaries in report period (C1) | 15,000.00 | Total amount of actual occurred guarantee for subsidiaries in report period (C2) | 4,900.00 | |||
| Total amount of approved guarantee for subsidiaries at the end of reporting period (C3) | 35,000.00 | Total balance of actual guarantee for subsidiaries at the end of reporting period (C4) | 4,400.00 | |||
| Total amount of guarantee of the Company (total of three abovementioned guarantee) | ||||||
| Total amount of approving guarantee in report period (A1+B1+C1) | 532,500.00 | Total amount of actual occurred guarantee in report period (A2+B2+C2) | 484,900.00 | |||
| Total amount of approved guarantee at the end of report period (A3+B3+C3) | 1,254,500.00 | Total balance of actual guarantee at the end of report period (A4+B4+C4) | 297,900.00 | |||
| Ratio of actual guarantee (A4+B4+C4) in net assets of the Company | 51.14% | |||||
| 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) | 151,500.00 | |||||
| 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) | 151,500.00 | |||||
| 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 April 30, 2022. For details, pleaserefer 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 innormal production and operation, there are no overdue loans, and the guarantee risks are controllable. During the reporting period, the highest level of security theCompany provided amounted to 12,195 million yuan by the approval, the actual amount of guarantee is 4,800 million yuan. At the end of the reporting period, thepractical guarantee balance amounted to 2,935 million yuan, accounting for the Company’s latest net assets ratio of 50.39%.The amount of effective guarantee provided by the approved subsidiaries of the Company to the subsidiaries is RMB 350 million, the actual amount of guarantee isRMB 49 million, and the actual guarantee balance provided by the subsidiaries to the subsidiaries is RMB 44 million, accounting for 0.76%of the Company's latestnet assets.
Explanation on guarantee with composite way: Not applicable
(iii) Entrust others to cash asset management
1. Trust financing
√ Applicable □ Not applicable
Trust financing in the period
In RMB 10,000
| Type | Capital resources | Amount for entrust | Undue balance | Overdue amount | Impairment amount for overdue financial management |
| Bank financing products | Own idle funds | 35,000.00 | 0 | 0 | 0 |
| Total | 35,000.00 | 0 | 0 | 0 | |
Note: The above-mentioned entrusted financing amount is the total financing amount of subsidiaries of theCompany during the reporting period.Details of the single major amount, or high-risk trust investment with low security, poor fluidity
√ Applicable □ Not applicable
In RMB 10,000
| 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 (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) |
| Zhongshanbranch of China Guangfa Bank Co., Ltd. | Bank | Principal-guaranteed with floating income | 5,000.00 | Idle own funds | February 14, 2023 | May 15, 2023 | The principal of this structured deposit is included in the unified operation and management of funds of Guangfa Bank, and the income of investors' structured deposits depends on the performance of USD/JPY during the observation period. | Agreement | 1.5% | Not applicable | 18.49 | 18.49 | N | Y | Not applicable | Juchao Website(www.cninfo.com.cn) ( Announcement No.: 2023-009) |
| Zhongshan branch of Bank of Communications Co., Ltd | Bank | Principal-guaranteed with floating income | 5,000.00 | Idle own funds | March 10, 2023 | July 10, 2023 | 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 | Agreement | 3.00% | Not applicable | 50.14 | 50.14 | N | Y | Not applicable | Juchao Website(www.cninfo.com.cn) ( Announcement No.: 2023-009) |
| reserve fund and deposit insurance. The embedded derivative part of products will be linked to the exchange rate, interest rate, commodity and index, etc. | ||||||||||||||||
| Mianyang branch of SPD Bank | Bank | Principal-guaranteed with floating income | 5,000.00 | Idle own funds | June 26, 2023 | September 26, 2023 | The structured deposits are included in the payment scope of deposit reserve and deposit insurance premium in accordance with deposit management and regulatory requirements, | Agreement | 2.80% | Not applicable | 35.00 | 35.00 | N | Y | Not applicable | Juchao Website(www.cninfo.com.cn) ( Announcement No.: 2023-038) |
| Mianyang Branch of Chengdu Bank | Bank | Principal-guaranteed with floating income | 10,000.00 | Idle own funds | September 25,2023 | October 25,2023 | This product will be invested in derivatives related to the exchange rate in the international foreign exchange market. | Agreement | 2.90% | Not applicable | 24.17 | 24.17 | N | Y | Not applicable | Juchao Website(www.cninfo.com.cn) ( Announcement No.: 2023-049) |
| Mianyang Branch of Chengdu Bank | Bank | Principal-guaranteed with floating income | 10,000.00 | Idle own funds | October 25,2023 | November 27,2023 | This product will be invested in derivatives related to the exchange rate in the international foreign exchange market. | Agreement | 2.80% | Not applicable | 25.67 | 25.67 | N | Y | Not applicable | Juchao Website(www.cninfo.com.cn) ( Announcement No.: 2023-049) |
| Total | 35,000.00 | -- | -- | -- | -- | -- | -- | -- | 153.47 | 153.47 | -- | -- | -- | -- | ||
Note: Zhongke Meiling, a subsidiary of the Company, is a listed company of the Beijing Stock Exchange. For details of its entrusted financial management, pleaserefer to Zhongke Meiling's 2023 annual Report.
Entrust financial expected to be unable to recover the principal or impairment might be occurred
□ Applicable √ Not applicable
2. Entrust loans
□ Applicable √ Not applicable
No entrust loans in the period.(iv) Other material contracts
□ Applicable √ Not applicable
No other material contracts in the period.XVI. Explanation on other significant events
√ Applicable □ Not applicable
1. According to the resolutions adopted at the 31st meeting of the 10th Board of Directors, the 22nd meeting of the10th Board of Supervisors and the 2022 Annual General Meeting of Shareholders, it was agreed that the Companyand its subsidiaries would make a single provision for bad debts for the receivables of the customer, ChanghongRUBA Electric Co., Ltd. (a joint venture of Zhongshan Changhong Electric Co., Ltd., a subsidiary of the Company)in the fourth quarter of 2022, and it was agreed that in the fourth quarter of 2022, the Company, its subsidiariesHefei Meiling Group Holding Co., Ltd., Sichuan Changhong Air Conditioning Co., Ltd. and its affiliated companySichuan Zhiyijia Network Technology Co., Ltd. would make a single provision for bad debts for the receivables ofGome (Gome is a general term for the subsidiaries, branches, offices and agencies at all levels of Gome Retail), andthe total amount of the above-mentioned single provision for bad debts is RMB 101,962,546.44. Found more onappointed media “Securities Times”, “China Securities Journal and Juchao Website (www.cninfo.com.cn) that theCompany disclosed in the form of announcement (Announcement No. 2023-002, 2023-005 and 2023-030) on 18January 2023 and 26 April 2023.
2. According to the resolutions of the 31st meeting of the 10th Board of Directors, the 22nd meeting of the 10thBoard of Supervisors and the 2022 Annual General Meeting of Shareholders, the Plan on the Company's ProfitDistribution in 2022 was adopted, and at the same time, the independent directors of the Company issuedindependent approval opinions on the plan. Considering the interests of shareholders and the long-term developmentneeds of the Company, based on the Company's total share capital of 1,029,923,715 shares on December 31, 2022,the Company distributed a cash dividend of RMB 0.9 (including tax) to all shareholders for every 10 shares, withno bonus or conversion of reserve funds into share capital. After this distribution, the remaining accumulatedundistributed profit of the parent company was RMB 971,443,732.63, and the remaining undistributed profit wascarried forward to the next year for distribution.On June 10, 2023, the Company disclosed the Announcement onthe Implementation of the Profit Distribution Plan for 2022, and implemented the aforementioned profit distributionplan.Found more on appointed media “Securities Times”, “China Securities Journal” and Juchao Website(www.cninfo.com.cn) that the Company disclosed in the form of announcement (Announcement No. 2023-011,2023-012 ,2023-014,2023-030 and 2023-037) on 31 March 2023, 26 April 2023 and 10 June 2023.
3. After deliberated and approved by the 31st session of 10
thBOD and Annual General Meeting of 2022, it agreedthat the Company and its subsidiaries shall carry out forward foreign exchange fund trading business during theperiod from 1 July 2023 to 30 June 2024. Balance of trading not exceeding US$ 1.046 billion (mainly including
USD, AUD, EUR and other foreign exchange converted to USD), and the maximum period of delivery of a singlebusiness shall not exceed one year. Found more on appointed media “Securities Times”, “China Securities Journal”and Juchao Website (www.cninfo.com.cn) that the Company disclosed in the form of announcement(Announcement No. 2023-011, 2023-016 and 2023-030) on 31 March 2023 and 26 April 2023.
4. By the resolution passed at the 31st meeting of the Tenth Board of Directors and the 2022 Annual General Meetingof Shareholders, it was agreed that the Company and its holding subsidiaries should apply for a special credit linefor RMB bill pool of maximum RMB 400 million from Hefei Branch of Industrial Bank Co., Ltd., that of maximumRMB 300 million from Hefei Branch of Ping An Bank Co., Ltd., and that of RMB 400 million from Hefei Branchof Jiujiang Bank Co., Ltd., with a credit period of one year. The credit lines are mainly used for special business ofbill pools and are pledged by bills. Found more on appointed media “Securities Times”, “China Securities Journal”and Juchao Website (www.cninfo.com.cn) that the Company disclosed in the form of announcement(Announcement No. 2023-011, 2023-018 and 2023-030) on 31 March 2023 and 26 April 2023.
5. During the period from April 17, 2023 to April 19, 2023, the deviation of the closing price of the Company's stocktrading for three consecutive trading days exceeded 20%. According to the relevant regulations of Shenzhen StockExchange, the Company issued the Announcement of Abnormal Fluctuations in Stock Trading.Found more on appointed media “Securities Times”, “China Securities Journal” and Juchao Website(www.cninfo.com.cn) that the Company disclosed in the form of announcement (Announcement No. 2023-029) on20 April 2023.
6 According to the resolution of the 32nd meeting of the Tenth Board of Directors and the First ExtraordinaryGeneral Meeting of Shareholders in 2023, the Proposal on Changes in Accounting Policies in 2023 was reviewedand approved, and it was agreed that the Company would make changes in accounting policies in accordance withthe relevant provisions of Interpretation No.16 of Accounting Standards for Business Enterprises of the AccountingDepartment of the Ministry of Finance. Found more on appointed media “Securities Times”, “China SecuritiesJournal” and Juchao Website (www.cninfo.com.cn) that the Company disclosed in the form of announcement(Announcement No. 2023-023, 2023-027 and 2023-033) on 20 April 2023 and 11 Mayl 2023.
7. According to the resolutions of the 32nd meeting of the 10th Board of Directors and the first extraordinary GeneralMeeting of Shareholders in 2023, it was agreed to revise some articles of the Articles of Association according tothe needs of the Company's operation and management and the actual situation of the Company.Found more onappointed media “Securities Times”, “China Securities Journal” and Juchao Website (www.cninfo.com.cn) that theCompany disclosed in the form of announcement (Announcement No. 2023-023, 2023-027 and 2023-033) on 20April 2023 and 11 May 2023.
8. On April 27, 2023, the Company received a notice from Mr. Tang Youdao, Vice President of the Company. Basedon his firm confidence in the Company's future development prospects and recognition of the Company's long-terminvestment value, Mr. Tang Youdao increased his holdings of common shares (A shares) by 800,000 shares throughcentralized bidding in the trading system of Shenzhen Stock Exchange.Found more on appointed media “SecuritiesTimes”, “China Securities Journal” and Juchao Website (www.cninfo.com.cn) that the Company disclosed in theform of announcement (Announcement No. 2023-032) on 29 April 2023.
9. In order to establish a variety of shareholder return mechanisms, thank shareholders for their long-term concern
and support, and at the same time to allow shareholders to experience the Company's new products and services,and improve investors' understanding and recognition of the Company's intrinsic value, the Company held the"Meiling 40th Anniversary Shareholder Thanksgiving Festival" from May 20, 2023 to May 28, 2023.Found more on appointed media “Securities Times”, “China Securities Journal” and Juchao Website(www.cninfo.com.cn) that the Company disclosed in the form of announcement (Announcement No. 2023-034) on18 May 2023.
10. On May 25, 2023, the Company issued the Announcement on the Resignation of Senior Managers of theCompany, and Mr. Liu Hongwei, the former Executive Vice President of the Company, applied to resign as theexecutive vice president of the Company for personal reasons. Found more on appointed media “Securities Times”,“China Securities Journal” and Juchao Website (www.cninfo.com.cn) that the Company disclosed in the form ofannouncement (Announcement No. 2023-036) on 25 May 2023. As of the disclosure date of this report, Mr. LiuHongwei no longer holds any position in the Company and its subsidiaries.
11. On May 24, 2023, the Company received the Notice on Share Reduction Plan from Mr. Huang Danian, VicePresident of the Company. Due to the needs of personal family funds, Mr. Huang Danian planned to reduce hisshares by no more than 89,113 shares (accounting for 0.0087% of the Company's total share capital) throughcentralized bidding within 6 months after 15 trading days upon the announcement date of the reduction plan, withthe amount of reduction not exceeding 25% of his shares of the Company. As of December 16, 2023, upon theexpiry of the period of the share reduction plan, Mr. Huang Danian, the Vice President, did not reduce his shares inthe Company during the period of the reduction plan, and the number of shares he held before and after the reductionplan had not changed,Found more on appointed media “Securities Times”, “China Securities Journal” and Juchao Website(www.cninfo.com.cn) that the Company disclosed in the form of announcement (Announcement No. 2023-035 and2023-076) on 25 May 2023.
12. After the resolution passed at the 33rd meeting of the Tenth Board of Directors of the Company, it was agreedto adjust the shareholding structure of Sichuan Hongmei Intelligent Technology Co., Ltd. (hereinafter referred to as"Hongmei Company"), that is, to transfer 100% equity of Hongmei Company held jointly by Sichuan ChanghongAir Conditioning Co., Ltd. (a wholly-owned subsidiary of the Company, which holds 99% equity of HongmeiCompany) and Mianyang Meiling Refrigeration Co., Ltd. (a wholly-owned subsidiary of the Company, which holds1% equity of Hongmei Company) to the Company for direct holding, at an equity transfer price according to theaudited net asset value of Hongmei Company as of December 31, 2022, which was RMB 22,725,052.60.Foundmore on appointed media “Securities Times”, “China Securities Journal” and Juchao Website (www.cninfo.com.cn)that the Company disclosed in the form of announcement (Announcement No. 2023-040 and 2023-076) on 18August 2023.
13. After the resolutions of the 33rd meeting of the Tenth Board of Directors, the 24th meeting of the Tenth Boardof Supervisors and the Second Extraordinary General Meeting of Shareholders in 2023, it was agreed that theCompany would provide an additional credit guarantee line of no more than RMB 80 million to its subsidiaryHefei Changhong Meiling Electrical Appliance Co., Ltd. with a guarantee period of one year.Found more onappointed media “Securities Times”, “China Securities Journal” and Juchao Website (www.cninfo.com.cn) that the
Company disclosed in the form of announcement (Announcement No. 2023-040, 2023-041 ,2023-043 and 2023-065) on 18 August 2023 and November 4, 2023.
14. By the resolutions approved at the 34th meeting of the Tenth Board of Directors and the 25th meeting of theTenth Board of Supervisors, it was agreed to extend the duration of Sichuan Hongyun New Generation ofInformation Technology Venture Capital Fund Partnership (Limited Partnership) for one year (the specificexpiration date is subject to the industrial and commercial registration), that is, the cumulative duration of such fundafter this extension is 9 years, and it was agreed that the Company and other partners signed the Amendment to thePartnership Agreement of Sichuan Hongyun New Generation of Information Technology Venture Capital FundPartnership (Limited Partnership).Found more on appointed media “Securities Times”, “China Securities Journal”and Juchao Website (www.cninfo.com.cn) that the Company disclosed in the form of announcement(Announcement No. 2023-044,2023-045 and 2023-046) on 8 September 2023.
15. Ms. Pan Haiyun, the Company's securities affairs representative, applied to resign as the Company's securitiesaffairs representative due to work adjustment. After resigning as the securities affairs representative, Ms. Pan Haiyunwill work in the Company's holding subsidiary.According to the Company Law, the Articles of Association andother relevant regulations, the resignation report will take effect as of the date it is delivered to the Board of Directors,and the Board of Directors of the Company agrees to Ms. Pan Haiyun's resignation request.Found more on appointedmedia “Securities Times”, “China Securities Journal” and Juchao Website (www.cninfo.com.cn) that the Companydisclosed in the form of announcement (Announcement No. 2023-048) on 12 September 2023.16 By the resolutions passed at the 35th meeting of the Tenth Board of Directors and the Second ExtraordinaryGeneral Meeting of Shareholders in 2023, it was agreed that the Company and its subsidiaries would apply for aspecial credit line for RMB bill pool of maximum RMB 500 million from Hefei Branch of Huaxia Bank Co., Ltd.,that of maximum RMB 600 million from Hefei Branch of Hangzhou Bank Co., Ltd., and that of maximum RMB 1billion from Anhui Branch of Bank of Communications Co., Ltd., with a credit period of one year. Found more onappointed media “Securities Times”, “China Securities Journal” and Juchao Website (www.cninfo.com.cn) that theCompany disclosed in the form of announcement (Announcement No. 2023-055 and 2023-065) on 18 October 2023and November 4,2023.
17. By the resolutions approved at the 36th meeting of the Tenth Board of Directors and the 36th meeting of theTenth Board of Supervisors, it was agreed that the amount of bad debt provision accrued individually for direct andindirect receivables of Gome was RMB 44,358,520.13 in the third quarter of 2023. After this withdrawal, the above-mentioned receivables of Gome system have been fully accrued for bad debt provision. Found more on appointedmedia “Securities Times”, “China Securities Journal” and Juchao Website (www.cninfo.com.cn) that the Companydisclosed in the form of announcement (Announcement No. 2023-060, 2023-061 and 2023-062) on 24 October2023.
18. By the resolutions approved at the 37th meeting of the Tenth Board of Directors, the 28th meeting of the TenthBoard of Supervisors and the Third Extraordinary General Meeting of Shareholders in 2023, it was agreed that theCompany and its subsidiaries could use their own idle funds of no more than RMB 1.5 billion (which can be usedin a rolling way) to invest in bank wealth management products with high safety, good liquidity, low risk andstability within one year. The authorization period is valid within one year from the date of deliberation and approval
by the General Meeting of Shareholders of the Company.Found more on appointed media “Securities Times”,“China Securities Journal” and Juchao Website (www.cninfo.com.cn) that the Company disclosed in the form ofannouncement (Announcement No. 2023-066, 2023-67, 2023-071 and 2023-080) on 5 December 2023 andDecember 22, 2023..
19. By the resolution of the 37th meeting of the Tenth Board of Directors of the Company, it was agreed that theCompany and its subsidiaries and Hefei Branch of China Zheshang Bank Co., Ltd. should carry out asset poolbusiness with a total amount not exceeding RMB 500 million. The term is one year from the date when the matteris reviewed and approved by the Company's General Meeting of Shareholders.Found more on appointed media“Securities Times”, “China Securities Journal” and Juchao Website (www.cninfo.com.cn) that the Companydisclosed in the form of announcement (Announcement No. 2023-066 and 2023-072) on 5 December 2023.
20. By the resolutions approved at the 37th meeting of the Tenth Board of Directors and the Third ExtraordinaryGeneral Meeting of Shareholders in 2023, the related clauses of the Articles of Association, the Rules of Procedureof the Board of Directors and the Independent Director System were agreed to be revised in accordance with theAdministrative Measures for Independent Directors of Listed Companies of CSRC, the Guideline No.1 for Self-regulation of Listed Companies in Shenzhen Stock Exchange - Standardized Operation of Listed Companies onMain Board of Shenzhen Stock Exchange and other relevant laws and regulations.Found more on appointed media“Securities Times”, “China Securities Journal” and Juchao Website (www.cninfo.com.cn) that the Companydisclosed in the form of announcement (Announcement No. 2023-066, 2023-073 and 2023-080) on 5 December2023 and December 22, 2023.
XVII. Major event of the subsidiary
√ Applicable □ Not applicable
1.According to the resolutions of the 31st meeting of the 10th Board of Directors and the 22nd meeting of the 10thBoard of Supervisors, it was agreed that Zhongshan Changhong, a subsidiary of the Company would write off theuncollectible bad debts totaling RMB 1,307,424.41.Found more on appointed media “Securities Times”, “ChinaSecurities Journal” and Juchao Website (www.cninfo.com.cn) that the Company disclosed in the form ofannouncement (Announcement No. 2023-011, 2023-012 and 2023-017) on 31 March 2023.
2. According to the resolution approved at the 33rd meeting of the Tenth Board of Directors of the Company, it wasagreed to cancel Hefei Meiling Marketing Co., Ltd., a wholly-owned subsidiary of the Company according to thebusiness development needs of the Company.Found more on appointed media “Securities Times”, “China SecuritiesJournal” and Juchao Website (www.cninfo.com.cn) that the Company disclosed in the form of announcement(Announcement No. 2023-040) on 8 September 2023.
3. By the resolution approved at the 33rd meeting of the Tenth Board of Directors, it was agreed that ZhongshanChanghong would invest RMB 36.526 million with its own funds to carry out technical transformation on itsproduction line, improve its manufacturing capacity, reduce costs and improve efficiency, and enhance productcompetitiveness.Found more on appointed media “Securities Times”, “China Securities Journal” and JuchaoWebsite (www.cninfo.com.cn) that the Company disclosed in the form of announcement (Announcement No. 2023-040) on 8 September 2023.
4. By the resolution approved at the 33rd meeting of the Tenth Board of Directors of the Company, it was agreedthat Zhongshan Heat Pump would implement the relocation and capacity expansion project with its own funds ofRMB 34.62 million to ensure its future business development. Found more on appointed media “Securities Times”,“China Securities Journal” and Juchao Website (www.cninfo.com.cn) that the Company disclosed in the form ofannouncement (Announcement No. 2023-040) on 8 September 2023.
5. By the resolution approved at the 34th meeting of the Tenth Board of Directors of the Company, it was agreedthat Changhong Air Conditioning would implement the capacity improvement and transformation project with itsown funds of RMB 32,206,700, thus ensuring the stable operation and development of Changhong Air Conditioningin the future; It was agreed that Changhong Air Conditioning would carry out technical transformation with its owncapital of RMB 17,135,700, thus ensuring the stable operation and development of Changhong Air Conditioning inthe future.Found more on appointed media “Securities Times”, “China Securities Journal” and Juchao Website(www.cninfo.com.cn) that the Company disclosed in the form of announcement (Announcement No. 2023-044) on8 September 2023.
6. At the 37th meeting of the Tenth Board of Directors of the Company, it was agreed that Zhongke Meiling woulddonate an automatic vaccination workstation with a value of RMB 1.15 million to the Linhu Community HealthService Center of Hefei Economic and Technological Development Zone through Hefei Red Cross Society toimprove the efficiency and safety of vaccination.Found more on appointed media “Securities Times”, “China Securities Journal” and Juchao Website(www.cninfo.com.cn) that the Company disclosed in the form of announcement (Announcement No. 2023-066) on5 December 2023.
VII .Changes in Shares and Particulars about ShareholdersI. Changes in Share Capital(i) Changes in Share Capital
In 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 | 7,192,492 | 0.70% | 0 | 0 | 0 | +496,350 | +496,350 | 7,688,842 | 0.75% |
| 1. State-owned shares | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| 2. State-owned legal person’s shares | 1,141,053 | 0.11% | 0 | 0 | 0 | 0 | 0 | 1,141,053 | 0.11% |
| 3. Other domestic shares | 4,784,019 | 0.47% | 0 | 0 | 0 | +496,350 | +496,350 | 5,280,369 | 0.52% |
| Including: Domestic legal person’s shares | 3,363,539 | 0.33% | 0 | 0 | 0 | 0 | 0 | 3,363,539 | 0.33% |
| Domestic natural person’s shares | 1,420,480 | 0.14% | 0 | 0 | 0 | +496,350 | +496,350 | 1,916,830 | 0.19% |
| 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 | 1,022,731,223 | 99.30% | 0 | 0 | 0 | -496,350 | -496,350 | 1,022,234,873 | 99.25% |
| 1. RMB ordinary shares | 875,808,809 | 85.04% | 0 | 0 | 0 | -496,350 | -496,350 | 875,312,459 | 84.99% |
| 2. Domestically listed foreign shares | 146,922,414 | 14.26% | 0 | 0 | 0 | 0 | 0 | 146,922,414 | 14.26% |
| 3. Overseas listed | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| foreign shares | |||||||||
| 4. Others | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| III. Total shares | 1,029,923,715 | 100.00% | 0 | 0 | 0 | 0 | 0 | 1,029,923,715 | 100.00% |
1. Reasons for share changed
√ Applicable □ Not applicable
(1) On April 27, 2023, Mr. Tang Youdao, Vice President of the Company, based on his firm confidence in theCompany's future development prospects and recognition of the Company's long-term investment value, increasedhis holdings of common shares by 800,000 shares through centralized bidding in the trading system of ShenzhenStock Exchange. According to the Rules for the Administration of the Shares of the Company Held by Directors,Supervisors and Senior Managers of Listed Companies and Their Changes and other relevant regulations, 75% ofthe total shares of the company held by Mr. Tang Youdao, namely 600,000 shares, were locked.
（2）According to the relevant provisions of the Company Law, the Securities Law and the Rules for theAdministration of the Shares of the Company Held by Directors, Supervisors and Senior Managers of ListedCompanies and Their Changes, 75% of 414,600 common shares held by Ms. Li Xia at the beginning of 2023,namely 310,950 shares, were restricted from sale, and the other 25%, namely 103,650 shares, were lifted from suchrestriction.
2. Approval of share changed
□ Applicable √Not applicable
3. Ownership transfer of share changed
□ Applicable √Not applicable
4. 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
5. Other information necessary to disclose or need to disclosed under requirement from security regulators
□ Applicable √ Not applicable
(ii) Changes of lock-up stocks
√ Applicable □ Not applicable
In: Shares
| Shareholders | Opening shares restricted | Shares released in Period | Restricted shares increased in Period | Ending shares restricted | Restricted reasons | Date for released |
| Tang Youdao | 0 | 600,000 | 0 | 600,000 | Top management lock-in stock | On April 27, 2023, Mr. Tang Youdao, Vice President of the Company, based on his firm confidence in the Company's future development prospects and recognition of the Company's long-term investment value, increased his holdings of common shares by 800,000 shares through centralized bidding in the trading system of Shenzhen Stock Exchange. According to the relevant provisions of the Company Law, the Securities Law and the Rules for the Administration of the Shares of the Company Held by Directors, Supervisors and Senior Managers of Listed Companies and Their Changes, 75% of the total shares of the Company held by Mr. Tang Youdao, namely 600,000 shares, were locked. |
| Li Xia | 414,600 | 0 | 103,650 | 310,950 | Top management lock-in stock | According to the relevant provisions of the Company Law, the Securities Law and the Rules for the Administration of the Shares of the Company Held by Directors, Supervisors and Senior Managers of Listed Companies and Their Changes, At the beginning of 2023, 103,650 shares held by Ms. Li Xia, accounting for 25% of the total shares, were lifted from the restricted sale. |
| Total | 414,600 | 600,000 | 103,650 | 910,950 | -- | -- |
II. Securities issuance and listing(i) Security offering in reporting period (Not including preferred stock)
□ Applicable √ Not applicable
(ii) Explanation on changes of total shares, shareholders structure and assets & liability structures
□ Applicable √ Not applicable
(iii) Current shares held by internal staffs
□ Applicable √ Not applicable
III. Particulars about shareholder and actual controller of the Company(i) Amount of shareholders of the Company and particulars about shares holding
In Share
| Total shareholders at end of the Period | 49,871 | Total common shareholders at end of last month before annual report disclosed | 41,938 | Total preference shareholders with voting rights recovered at end of reporting period (if applicable) | 0 | Total preference shareholders with voting rights recovered at end of last month before annual report disclosed (if applicable) | 0 | ||||||
| Particulars about shares held above 5% by shareholders or top 10 shares holding | |||||||||||||
| Full name of Shareholders | Nature of shareholder | Proportion of shares held | Total shareholders at the end | Changes in report period | Amount of restricte | Amount of un-restricted shares held | Information of shares pledged, tagged or frozen | ||||||
| of report period | d shares held | 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 | - | - | |
| National Social Security Fund 101 Portfolio | Domestic non-state-owned legal person | 2.21% | 22,782,736 | +22,782,736 | 0 | 22,782,736 | - | - | |
| CAO SHENGCHUN | Foreign nature person | 1.43% | 14,766,086 | 0 | 0 | 14,766,086 | - | - | |
| China Construction Bank Co., Ltd.- Jiashixin Consumer Stock Securities Investment Fund | Domestic non-state-owned legal person | 1.17% | 12,082,100 | +12,082,100 | 0 | 12,082,100 | - | - | |
| Du Yunzhi | Domestic nature person | 1.16% | 12,050,000 | +12,050,000 | 0 | 12,050,000 | - | - | |
| ICBC－South Excellent Growth Stock Securities Investment Fund | Domestic non-state-owned legal person | 1.03% | 10,643,000 | +10,643,000 | 0 | 10,643,000 | - | - | |
| Industrial Bank－Southern Xingrun value one-year holding period of hybrid securities investment fund | Domestic non-state-owned legal person | 0.89% | 9,161,600 | +9,161,600 | 0 | 9,161,600 | - | - | |
| China Construction Bank Co., Ltd－China Construction Bank Co., Ltd. - Bank of Communications Schroeder Consumption New Drive Stock Securities Investment Fund | Domestic non-state-owned legal person | 0.75% | 7,763,568 | +7,763,568 | 0 | 7,763,568 | - | - | |
| Strategy investors or general legal person becomes top 10 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., the foregoing shareholders constitute persons of uniform action. There existed no associated relationship or belong to the concerted actors as specified in the Measures for the Administration of Information Disclosure of Shareholder Equity Changes of Listed Companies among Sichuan Changhong Electric Co., Ltd, Hong Kong Changhong and other top 8 shareholders, The company neither knows whether there is any association among other shareholders, nor knows whether other shareholders belong to the persons acting in concert that is stipulated in the “Administrative Measures on Information Disclosure of Changes in Shareholding of Listed Companies”. | ||||||||
| 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 | ||||||||
| Particular about top ten shareholders with un-restrict shares held | |||||||||
| Shareholders’ name | Amount of | Type of shares | |||||||
| unrestricted shares held at end of Period | 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 | RMB ordinary shares | 27,077,797 | |
| National Social Security Fund 101 Portfolio | 22,782,736 | RMB ordinary shares | 22,782,736 | |
| CAO SHENGCHUN | 14,766,086 | Domestically listed foreign share | 14,766,086 | |
| China Construction Bank Co., Ltd.- Jiashixin Consumer Stock Securities Investment Fund | 12,082,100 | RMB ordinary shares | 12,082,100 | |
| Du Yunzhi | 12,050,000 | RMB ordinary shares | 12,050,000 | |
| ICBC－South Excellent Growth Stock Securities Investment Fund | 10,643,000 | RMB ordinary shares | 10,643,000 | |
| Industrial Bank－Southern Xingrun value one-year holding period of hybrid securities investment fund | 9,161,600 | RMB ordinary shares | 9,161,600 | |
| China Construction Bank Co., Ltd－China Construction Bank Co., Ltd. - Bank of Communications Schroeder Consumption New Drive Stock Securities Investment Fund | 7,763,568 | RMB ordinary shares | 7,763,568 | |
| Expiation on associated relationship or consistent actors within the top 10 un-restrict shareholders and between top 10 un-restrict shareholders and top 10 shareholders | Found more in “Particulars about shares held above 5% by shareholders or top 10 shares holding” | |||
| Explanation on top ten common shareholders involving margin business (if applicable) | Not applicable | |||
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 through Philip Securities (H.K.) Co., Ltd. by CHANGHONG (HK) TRADING LIMITEDNote 2: In the above table, "Particulars about shares held above 5% by shareholders or top 10 shares holding" issubject to the data on stock transfer books provided by China Securities Depository and Clearing CorporationLimited Shenzhen BranchLending of shares by the top ten shareholders participating in refinancing business
□ Applicable √ Not applicable
The top ten shareholders have changed from the previous period?Applicable □Not applicable
In Share
| Changes of the top ten shareholders compared with the end of the previous period | |||||
| Name of shareholder (full name) | Addition/Withdrawal in this reporting period | Number of shares lent by refinancing at the end of the period and not yet returned | Number of shares held by shareholders in general accounts and credit accounts and lent by refinancing at the end of the period and not yet returned | ||
| Total quantity | Proportion of total share | Total quantity | Proportion of total share | ||
| capital | capital | ||||
| The National Social Security Fund 101 portfolio | Addition | 0 | 0.00% | 0 | 0.00% |
| China Construction Bank Co., Ltd.- Jiashixin Consumer Stock Securities Investment Fund | Addition | 0 | 0.00% | 0 | 0.00% |
| Du Yunzhi | Addition | 0 | 0.00% | 0 | 0.00% |
| ICBC－South Excellent Growth Stock Securities Investment Fund | Addition | 0 | 0.00% | 0 | 0.00% |
| Industrial Bank－Southern Xingrun value one-year holding period of hybrid securities investment fund | Addition | 0 | 0.00% | 0 | 0.00% |
| China Construction Bank Co., Ltd－China Construction Bank Co., Ltd. - Bank of Communications Schroeder Consumption New Drive Stock Securities Investment Fund | Addition | 0 | 0.00% | 0 | 0.00% |
| Ma Guobin | Out | 0 | 0.00% | 0 | 0.00% |
| Xu Aiyun | Out | 0 | 0.00% | 0 | 0.00% |
| Caitong Fund- Ningbo Bank-Haitong Xingtai (Anhui) Emerging Industry Investment Fund (Limited Partnership) | Out | 0 | 0.00% | 0 | 0.00% |
| Wang Xinzhong | Out | 0 | 0.00% | 0 | 0.00% |
| Wang Kai | Out | 0 | 0.00% | 0 | 0.00% |
Whether top ten common shareholders or top ten common shareholders with un-restrict shares held have a buy-back agreement dealing in reporting period.
□ Yes √ No
The top ten common shareholders or top ten common shareholders with un-restrict shares held of the Companyhave no buy –back agreement dealing in reporting period.(ii) Controlling shareholder of the Company
1. Nature of controlling shareholders: local state-owned holding
2. Type of controlling shareholders: legal person
| Controlling shareholders’ name | Legal rep./person in charge of unit | Dated founded | Organization code | Main business |
| Sichuan Changhong Electric Co., Ltd. | Liu Jiang | April 8,1993 | 91510700205412308D | Manufactures, sales and maintenance of household appliance, automotive electrical appliance, Electronic products and spare parts, communications equipment, lighting equipment, household products, computer and other Electronic equipment, specialized equipment of Electronic and Electronic, Electronic machinery and equipment, series products of batteries, Electronic medicine products, Electronic equipment, mechanical equipment, Refrigeration equipment and accessories digital monitoring products, metal products, apparatus and instruments, culture and office machines, culture and education and sports products, kitchen cabinet and gas appliance; house and equipment rental; packing products and technical services; road transportation; storage and discharging convey; R&D, sales and services of integrated circuit and software; consultancy and services of enterprise management; hi-tech project investment and other state-permitted business; development and operation of property; engineering construction for house and buildings; callback and disposal of obsolete appliance and Electronic products; services of Information Technology; consultancy and services of finance; sales, relevant import and export business of Chemical raw materials and products(Not contain dangerous chemicals), building materials, non-ferrous metal, Steel, plastics, packing material, mechanical and electrical equipment, Precious metals, Automotive components, Electronic components, Value added telecommunication service, agent service of telecommunication; designing, manufacturing, releasing and agency for the advertisement; Radio and television program production; Internet information services (excluding investment, finance and securities); audio and video production and services; R&D and design of the drone and unmanned aerial vehicle system as well as the promotion of drone technology; transfer and technical consulting service, production and sales of drone (any projects that needs permission by the law should subject to the approval by relevant authority ) |
| Equity controlling and jointly of other foreign/domestic listed company by controlling shareholder in reporting period | 1. As of December 31,2023, Sichuan Changhong directly holds 212,994,972 shares of Changhong Huayi Compressor Co., Ltd. (Stock code: 000404)- a company listed on the main board of the Shenzhen Stock Exchange, accounting for 30.60% of the equity of Changhong Huayi Compressor Co., Ltd. 2. As of December 31,2023, Sichuan Changhong indirectly holds 1,990,518,000 ordinary shares and preferred shares in total of Changhong Jiahua Holdings Co., Ltd. (Stock code: 03991) - a company listed on the main board of Hong Kong Stock Exchange, accounting for 77.44% of the whole ordinary shares and preferred shares under the name of Changhong Jiahua Holdings Co., Ltd. 3.As of December 31, 2023, Sichuan Changhong directly holds 86,258,333 shares of Sichuan Changhong Minsheng Logistics Co., Ltd (stock code:836237)- the company with shares transferring in National Equities Exchange and Quotations, accounting for 70.27% of the equity of Sichuan Changhong Minsheng Logistics Co., Ltd. | |||
3. Controlling shareholder changes in reporting period
□ Applicable √ Not applicable
Controlling shareholder stays the same in Period.(iii) Actual controller of the Company and its person acting in concert
1. Nature of actual controller: local state-owned assets management
2. Type of actual controller: legal person
10%%
| Actual controller | Legal rep./person in charge of unit | Dated founded | Organization code | Main business |
| State-owned Assets Supervision & Administration Commission of Mianyang Municipality | -- | -- | -- | State-owned Assets Supervision & Administration Commission of Mianyang Municipality is entrusted by the same level government, together performs decision-making and management of state-owned asset owners, and is one organization which executes comprehensive management and supervision on its belonged state-owned assets. |
| Equity controlling of other foreign/domestic listed company by actual controller in reporting period | Not Applicable | |||
3. Changes of actual controller in Period
□ Applicable √ Not applicable
Actual controller stays the same in Period
4. Property rights and the block diagram of the control relationship between the Company and the actual control(ended as 31
stDecember 2023)
5. Actual controller controlling the Company by means of entrust or other assets management
□ Applicable √ Not applicable
(iv) The total number of shares pledged by controlling shareholders or the first majority shareholder andits persons acting in concert accounts for 80% of the shares held by them
□ Applicable √ Not applicable
Sichuan ProvincialDepartment of Finance
23.22%
%
23.22%
%100%四川省绵阳市虹欢科技有限责任公司
%
100%四川省绵阳市虹欢科技有限责任公司
%
CHANGHONG MEILING CO.,LTD.
CHANGHONG MEILING CO.,LTD.
24.12%
四川省绵阳市虹欢科技有限责任公
司
%
| 3.24% % | 24.12% 四川省绵阳市虹欢科技有限责任公司 % |
Sichuan Changhong Electronics Holding Group
Co., Ltd.
Sichuan Changhong Electronics Holding Group
Co., Ltd.Sichuan Changhong Electric Co., Ltd.
Sichuan Changhong Electric Co., Ltd.CHANGHONG (HK) TRADING
LIMITEDCHANGHONG (HK) TRADING
LIMITED
CHANGHONG (HK) TRADING
LIMITEDCHANGHONG (HK) TRADING
LIMITED
90%
%
90%
%Mianyang State owned Assets
Supervision andAdministration Commission
(v)Other legal person’s shareholders with over ten percent shares held 10%.
□ Applicable √ Not applicable
(vi) Actual controller controlling the Company by means of entrust or other assets management
□ Applicable √ Not applicable
IV. The specific implementation of shares repurchased/buy-back during the reporting period(i) Implementation progress of shares buy-back
□ Applicable √ Not applicable
(ii) Implementation progress of reducing holdings of shares buy-back by centralized bidding
□ Applicable √ Not applicable
VIII. Situation of the Preferred Shares
□ Applicable √ Not applicable
The Company had no preferred stock in the Period
IX. Corporate Bond
□ Applicable √ Not applicable
X. Financial ReportI. Audit report
| Type of audit opinion | Standard unqualified opinion |
| Date for signing the report | March 282024 |
| Name of audit institute | Shine Wing Certified Public Accountants (LLP) |
| Serial of Auditing Report | XYZH/2024CDAA7B0066 |
| Name of CPA | Wang Xiaodong , Tu Xiaofeng |
Auditor’s Report
XYZH/2024CDAA7B0066To Shareholders of Changhong Meiling Co., Ltd.:
I.Auditor’s opinionWe, as the auditors, audited the financial statements of Changhong Meiling Co., Ltd. (the “Company”), whichincluded the consolidated balance sheet as of 31 December 2023, the consolidated statement of income, theconsolidated statement of cash flow and the consolidated statement of changes in equity of the Company for CurrentYear ended 31 December 2023, together with the relevant notes thereto.We are the view that the attached financial statements are prepared in accordance with the Business AccountingStandards in all material aspects, which reflect fairly the consolidated financial position of the Company as of 31December 2023 and the operating results and cash flow of the Company for Current Year of 2023.II. Basis for audit opinionsWe conducted this audit under the requirements of the Auditing Standards of the Certified Public Accountant of thePRC. The section headed “Certified Public Accountant’s responsibility for audit of financial statement” in the auditreport has further clarified our responsibilities under these standards. Pursuant to the code of professional conductas certified public accountant in the PRC, we are independent of the Company and have performed otherresponsibility as required by our professional ethics. We believe that the audit evidence obtained by us is sufficientand adequate, which provides foundation for us to issue audit opinion.III.Key audit issuesKey audit matters are those matters that, in our professional judgment, were of most significance in our audit of thefinancial statements of the current period. These matters were addressed in the context of our audit of the financialstatements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on thesematters. The key audit matter we identified is as follows:
| 1.Recognition of revenue | |
| Please refer to note (iv) 30 and note (v) 48. | |
| Key audit matters | Audit address |
| Sales revenue of the Company was mainly sourced from sales of refrigerator, air conditioner, small household appliances and kitchen and washing machines to both domestic and overseas customers. As indicated in note (v) 48 of the financial statement - Operating income and cost, the operating income was RMB24,247,678,970.56in 2023. Since the truthfulness and completeness of revenue recognition has material impact on operating results, we attached great importance to recognition of sales revenue. | Main auditing procedures for revenue recognition are including: 1) Understand and evaluate the design and effectiveness of the operation of internal control related to revenue recognition; 2) Check whether the revenue recognition conforms to the provisions of the criteria; 3) Implement analytical review procedures, including analysis of annual, monthly and seasonal revenue fluctuations of major products, changes in major customers, and changes in sales prices and gross margins; 4) 1) Implement detailed test procedures, check the supporting documents related to business revenue recognition, and determine whether the conditions for revenue recognition are met and whether the time point of revenue recognition is correct; 5) Carry out supervision and other procedures to the important inventory at end of the period, well-known the progress of the contracts and follow up the abnormal situations found in inspection; 6) Conduct inquiry through issue of letters, and carry out additional audit procedures for the items for which reply was abnormal; 7) review collection of trade receivables, confirm the conformity between the entities owing receivables and name of customers to verify whether there was collection of receivables from third parties, to review the truthfulness of the collection and revenue; 8) review collection of receivables in subsequent period; 9) make cut-off test and analysis re-review |
| 2.Capitalization of development expense | |
| Please refer to note (iii)21 and note (vi) | |
| Key audit matters | Audit address |
| The development expense occurred for research and development of non-patent technology in 2023 was RMB147,821,273.96, which was capitalized and accounted for as development expense in the consolidated financial statement. Development expense could only be capitalized upon satisfaction of all the capitalization conditions set out in note (iii) 21 to the financial statement. Since to confirm whether all the capitalization conditions are met requires the management to make significant judgment and estimate, we deem this matter important in the context of our audit. | 1) Understand the key control of capitalization of development expenditures, implement internal control audit procedures, understand the scope and accounting methods of development expenditures, understand and make research and development on related control systems and processes, and test the effectiveness of relevant internal control design and operation; 2) Implementation: compare the developed projects in intangible assets with machinery models for external sales, and re-verify the truthfulness of capitalization of completely developed projects 3) Dual purpose testing: inspect the project reports and inspection and acceptance reports formed during the research and development and commercialization of developed products, and judge the sufficiency of basis for accounting of development expense |
IV. Other informationThe management of Changhong Meiling Co., Ltd. (the “Management”) is responsible for other informationwhich includes the information covered in the Company’s 2022 annual report excluding the financial statementand our audit report.
The audit opinion issued by us for the financial statement has not covered other information, for which we do notissue any form of assurance opinions.Considering our audit on financial statements, we are liable to read other information, during which, we shallconsider whether other information differs materially from the financial statements or that we understand duringour audit, or whether there is any material misstatement.Based on the works executed by us, we should report the fact if we find any material misstatement in otherinformation. In t his regards, we have nothing to report.V. Responsibilities of management and those charged with governance for the financial statementsThe management is responsible for the preparation of the financial statements in accordance with the AccountingStandards for Enterprise to secure a fair presentation, and for the design, establishment and maintenance of theinternal control necessary to enable the preparation of financial statements that are free from material misstatement,whether due to fraud or error.In preparing the financial statements, the management is responsible for assessing the Company’s ability to continueas a going concern, disclosing matters related to going concern and using the going concern assumption unless themanagement either intends to liquidate the Company or to cease operations, or has no realistic alternative but to doso.Those charged with governance are responsible for overseeing the Company’s financial reporting process.
VI. Responsibilities of the auditor for the financial statementsOur objectives are to obtain reasonable assurance about whether the financial statements as a whole are free frommaterial misstatement, whether due to fraud or error, and to issue an audit report that includes our audit opinion.Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance withthe CAS will always detect a material misstatement when it exists. Misstatements can arise from fraud or error andare considered material if, individually or in the aggregate, they could reasonably be expected to influence theeconomic decisions of users taken on the basis of the financial statements.As part of an audit in accordance with the CAS, we exercise professional judgment and maintain professionalskepticism throughout the audit. We also:
(1) identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error,design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient andappropriate to provide a basis for audit opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,misrepresentations, or the override of internal control.
(2) Obtain an understanding of internal control relevant to the audit in order to design audit procedures that areappropriate in the circumstances.
(3) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates andrelated disclosures made by the management.
(4) Conclude on the appropriateness of the management’s use of the going concern assumption and, based on theaudit evidence obtained, whether a material uncertainty exists related to events or conditions that may castsignificant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty
exists, we are required by the CAS to draw users’ attention in audit report to the related disclosures in the financialstatements or, if such disclosures are inadequate, to modify audit opinion. Our conclusions are based on theinformation obtained up to the date of audit report. However, future events or conditions may cause the Companyto cease to continue as a going concern.
(5) Evaluate the overall presentation, structure and content of the financial statements, and whether the financialstatements represent the underlying transactions and events in a manner that achieves fair presentation.
(6) Obtain sufficient appropriate audit evidence regarding the financial information of the entities or businessactivities within the Company to express audit opinion on the financial statements. We are responsible for thedirection, supervision and performance of the group audit. We remain solely responsible for audit opinion.We communicate with those charged with governance regarding, among other matters, the planned scope and timingof the audit and significant audit findings, including any significant deficiencies in internal control that we identifyduring our audit.We also provide those charged with governance with a statement that we have complied with relevant ethicalrequirements regarding independence, and communicate with them all relationships and other matters that mayreasonably be thought to bear on our independence, related safeguard measures.From the matters communicated with those charged with governance, we determine those matters that were of mostsignificance in the audit of the financial statements of the current period and are therefore the key audit matters. Wedescribe these matters in the auditor’s report unless law or regulation precludes public disclosure about the matteror when, in extremely rare circumstances, we determine that a matter should not be communicated in the auditor’sreport because of the adverse consequences of doing so would reasonably be expected to outweigh the public interestbenefits of such communication.
| Chinese CPA: Tu Xiaofeng | ||
| Beijing China | 28 March 2024 |
| Shine Wing Certified Public Accountants (LLP) | Chinese CPA: Wang Xiaodong (Engagement partner) |
II. Financial statementsUnits in Notes of Financial Statements is RMB
1. Consolidated Balance Sheet
Prepared by CHANGHONG MEILING CO., LTD. December 31, 2023
In RMB
| Items | December 31,2023 | January 1,2023 |
| Current assets: | ||
| Monetary funds | 8,840,685,525.71 | 6,839,421,779.13 |
| Settlement provisions | ||
| Capital lent | ||
| Trading financial assets | 39,236,447.63 | 57,660,588.67 |
| Derivative financial assets | ||
| Note receivable | 267,174.50 | |
| Account receivable | 1,633,706,889.06 | 1,306,871,945.85 |
| Receivable financing | 1,641,858,740.34 | 1,446,358,719.88 |
| Accounts paid in advance | 45,738,805.90 | 45,859,491.55 |
| Insurance receivable | ||
| Reinsurance receivables | ||
| Contract reserve of reinsurance receivable | ||
| Other account receivable | 82,953,808.97 | 88,354,803.24 |
| Including: Interest receivable | ||
| Dividend receivable | ||
| Buying back the sale of financial assets | ||
| Inventories | 2,022,738,412.97 | 1,710,306,933.71 |
| Contractual assets | 13,261,690.62 | 3,530,922.13 |
| Assets held for sale | ||
| Non-current asset due within one year | 122,294,027.78 | 170,167,638.89 |
| Other current assets | 225,419,883.07 | 120,589,431.85 |
| Total current assets | 14,668,161,406.55 | 11,789,122,254.90 |
| Non-current assets: | ||
| Loans and payments on behalf | ||
| Debt investment | 420,537,485.54 | 121,543,750.00 |
| Other debt investment | ||
| Long-term account receivable | ||
| Long-term equity investment | 112,745,811.75 | 100,384,428.50 |
| Investment in other equity instrument | ||
| Other non-current financial assets | 674,139,515.48 | 628,549,448.31 |
| Investment real estate | 50,920,487.71 | 52,898,060.89 |
| Fixed assets | 2,136,912,034.28 | 2,229,553,866.96 |
| Construction in progress | 69,920,839.20 | 66,522,492.77 |
| Productive biological asset | ||
| Oil and gas asset | ||
| Right-of-use assets | 49,993,400.61 | 36,646,135.10 |
| Intangible assets | 886,455,434.73 | 900,568,008.21 |
| Expense on Research and Development | 97,177,535.34 | 102,148,390.57 |
| Goodwill | ||
| Long-term expenses to be apportioned | 35,698,465.62 | 14,900,600.59 |
| Deferred income tax asset | 162,340,495.03 | 161,565,695.30 |
| Other non-current asset | 26,601,614.35 | 893,238.57 |
| Total non-current asset | 4,723,443,119.64 | 4,416,174,115.77 |
| Total assets | 19,391,604,526.19 | 16,205,296,370.67 |
| Current liabilities: | ||
| Short-term loans | 1,134,102,419.03 | 674,143,916.67 |
| Loan from central bank | ||
| Capital borrowed | ||
| Trading financial liability | 32,229,012.86 | 41,961,524.78 |
| Derivative financial liability | ||
| Note payable | 5,904,387,089.98 | 4,964,374,512.60 |
| Account payable | 3,882,303,908.89 | 2,917,997,138.00 |
| Accounts received in advance | 55,949.90 | |
| Contractual liability | 405,698,756.02 | 358,755,397.77 |
| Selling financial asset of repurchase | ||
| Absorbing deposit and interbank deposit | ||
| Security trading of agency | ||
| Security sales of agency | ||
| Wage payable | 443,612,216.56 | 348,154,915.13 |
| Taxes payable | 91,917,751.71 | 80,287,878.62 |
| Other account payable | 884,714,721.30 | 828,207,568.21 |
| Including: Interest payable | ||
| Dividend payable | 5,384,407.44 | 4,978,994.16 |
| Commission charge and commission payable | ||
| Reinsurance payable | ||
| Liability held for sale | ||
| Non-current liabilities due within one year | 48,822,798.47 | 30,287,099.08 |
| Other current liabilities | 19,172,541.50 | 22,605,269.51 |
| Total current liabilities | 12,847,017,166.22 | 10,266,775,220.37 |
| Non-current liabilities: | ||
| Insurance contract reserve | ||
| Long-term loans | 108,000,000.00 | 148,000,000.00 |
| Bonds payable | ||
| Including: Preferred stock |
| Perpetual capital securities | ||
| Lease liability | 43,488,292.70 | 28,164,287.97 |
| Long-term account payable | 800,347.84 | 1,145,286.48 |
| Long-term wages payable | 11,417,181.82 | 10,790,859.64 |
| Accrual liability | 32,054,790.39 | 32,685,631.78 |
| Deferred income | 132,977,494.33 | 161,013,911.91 |
| Deferred income tax liabilities | 21,814,466.43 | 17,509,503.08 |
| Other non-current liabilities | ||
| Total non-current liabilities | 350,552,573.51 | 399,309,480.86 |
| Total liabilities | 13,197,569,739.73 | 10,666,084,701.23 |
| Owner’s equity: | ||
| Share capital | 1,029,923,715.00 | 1,029,923,715.00 |
| Other equity instrument | ||
| Including: Preferred stock | ||
| Perpetual capital securities | ||
| Capital public reserve | 2,805,503,457.77 | 2,806,493,904.30 |
| Less: Inventory shares | ||
| Other comprehensive income | -20,704,362.05 | -20,881,462.63 |
| Reasonable reserve | 11,246,811.91 | 2,467,205.78 |
| Surplus public reserve | 477,053,194.82 | 441,218,691.48 |
| Provision of general risk | ||
| Retained profit | 1,521,759,836.64 | 909,249,365.79 |
| Total owner’ s equity attributable to parent company | 5,824,782,654.09 | 5,168,471,419.72 |
| Minority interests | 369,252,132.37 | 370,740,249.72 |
| Total owner’ s equity | 6,194,034,786.46 | 5,539,211,669.44 |
| Total liabilities and owner’ s equity | 19,391,604,526.19 | 16,205,296,370.67 |
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
| Items | December 31,2023 | January 1,2023 |
| Current assets: | ||
| Monetary funds | 4,809,758,761.19 | 3,104,218,400.02 |
| Trading financial assets | 18,729,757.94 | 21,847,922.36 |
| Derivative financial assets | ||
| Note receivable | 38,674.50 | |
| Account receivable | 1,451,795,533.72 | 1,145,561,769.05 |
| Receivable financing | 1,497,014,392.88 | 1,433,254,352.52 |
| Accounts paid in advance | 57,223,852.86 | 66,583,414.71 |
| Other account receivable | 61,841,221.91 | 29,903,408.82 |
| Including: Interest receivable | ||
| Dividend receivable | ||
| Inventories | 563,055,688.46 | 463,576,760.77 |
| Contractual assets | 37,408.05 | 46,970.75 |
| Assets held for sale | ||
| Non-current assets maturing within one year | 122,294,027.78 | 170,167,638.89 |
| Other current assets | 117,873,746.80 | 165,510.80 |
| Total current assets | 8,699,663,066.09 | 6,435,326,148.69 |
| Non-current assets: | ||
| Debt investment | 185,038,444.44 | 121,543,750.00 |
| Other debt investment | ||
| Long-term receivables | ||
| Long-term equity investments | 1,857,475,810.90 | 1,856,359,424.33 |
| Investment in other equity instrument | ||
| Other non-current financial assets | 639,796,405.98 | 608,527,275.52 |
| Investment real estate | 3,335,032.47 | 3,543,885.11 |
| Fixed assets | 1,129,605,191.26 | 1,127,344,454.50 |
| Construction in progress | 23,067,134.99 | 51,057,550.03 |
| Productive biological assets | ||
| Oil and natural gas assets | ||
| Right-of-use assets | 14,847,119.40 | 16,739,912.26 |
| Intangible assets | 450,919,869.65 | 467,075,020.10 |
| Research and development costs | 59,134,989.07 | 60,386,906.45 |
| Goodwill | ||
| Long-term deferred expenses | 18,688,725.10 | 11,686,542.49 |
| Deferred income tax assets | 112,630,572.62 | 127,720,739.83 |
| Other non-current assets | 638,649.57 | 638,649.57 |
| Total non-current assets | 4,495,177,945.45 | 4,452,624,110.19 |
| Total assets | 13,194,841,011.54 | 10,887,950,258.88 |
| Current liabilities: | ||
| Short-term borrowings | 1,128,097,377.36 | 618,091,666.67 |
| Trading financial liability | 13,310,995.04 | 13,537,472.81 |
| Derivative financial liability | ||
| Notes payable | 2,697,168,522.01 | 2,230,728,460.34 |
| Account payable | 2,296,410,046.78 | 1,531,945,762.15 |
| Accounts received in advance | ||
| Contractual liability | 107,529,353.67 | 121,216,205.12 |
| Wage payable | 159,773,962.41 | 64,869,503.19 |
| Taxes payable | 25,137,168.64 | 20,168,907.95 |
| Other accounts payable | 951,772,428.91 | 708,015,820.72 |
| Including: Interest payable | ||
| Dividend payable | 4,784,407.44 | 4,378,994.16 |
| Liability held for sale | ||
| Non-current liabilities due within one year | 42,339,541.12 | 22,238,340.38 |
| Other current liabilities | 4,875,594.29 | 5,978,477.02 |
| Total current liabilities | 7,426,414,990.23 | 5,336,790,616.35 |
| Non-current liabilities: | ||
| Long-term loans | 108,000,000.00 | 148,000,000.00 |
| Bonds payable | ||
| Including: Preferred stock | ||
| Perpetual capital securities | ||
| Lease liability | 14,511,484.16 | 15,861,027.13 |
| Long-term account payable | ||
| Long term employee compensation payable | 6,554,481.48 | 7,184,302.85 |
| Accrued liabilities | 8,758,265.23 | 7,785,977.55 |
| Deferred income | 75,130,950.40 | 84,762,685.97 |
| Deferred income tax liabilities | 13,589,235.48 | 11,153,985.85 |
| Other non-current liabilities | ||
| Total non-current liabilities | 226,544,416.75 | 274,747,979.35 |
| Total liabilities | 7,652,959,406.98 | 5,611,538,595.70 |
| Owners’ equity: | ||
| Share capital | 1,029,923,715.00 | 1,029,923,715.00 |
| Other equity instrument | ||
| Including: Preferred stock | ||
| Perpetual capital securities | ||
| Capital public reserve | 2,740,508,510.57 | 2,740,508,510.57 |
| Less: Inventory shares | ||
| Other comprehensive income | ||
| Special reserve | 505,111.75 | 687,069.38 |
| Surplus reserve | 476,835,029.14 | 441,000,525.80 |
| Retained profit | 1,294,109,238.10 | 1,064,291,842.43 |
| Total owner’s equity | 5,541,881,604.56 | 5,276,411,663.18 |
| Total liabilities and owner’s equity | 13,194,841,011.54 | 10,887,950,258.88 |
Legal Representative: Wu DinggangPerson in charge of accounting works: Pang HaitaoPerson in charge of accounting institute: Yang Jun
3. Consolidated Profit Statement
In RMB
| 2023 | 2022 | |
| I. Total operating income | 24,247,678,970.56 | 20,215,220,192.20 |
| Including: Operating income | 24,247,678,970.56 | 20,215,220,192.20 |
| Interest income | ||
| Insurance gained | ||
| Commission charge and commission income | ||
| II. Total operating cost | 23,472,449,382.09 | 19,895,690,025.90 |
| Including: Operating cost | 20,866,555,797.73 | 17,444,530,235.32 |
| 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 | 195,095,277.47 | 158,529,459.29 |
| Sales expense | 1,571,486,417.63 | 1,428,874,991.47 |
| Administrative expense | 361,134,794.49 | 358,586,472.37 |
| R&D expense | 596,920,491.26 | 560,383,547.49 |
| Financial expense | -118,743,396.49 | -55,214,680.04 |
| Including: Interest expenses | 30,088,976.40 | 30,470,512.88 |
| Interest income | 191,805,963.97 | 159,034,499.30 |
| Add: Other income | 146,608,702.27 | 102,556,591.53 |
| Investment income (Loss is listed with “-”) | 8,438,592.04 | 33,018,838.80 |
| Including: Investment income on affiliated company and joint venture | 19,133,884.40 | 20,440,095.97 |
| The termination of income recognition for financial assets measured by amortized cost | -22,489,932.70 | -24,385,552.13 |
| Exchange income (Loss is listed with “-”) | ||
| Net exposure hedging income (Loss is listed with “-”) | ||
| Income from change of fair value (Loss is listed with “-”) | 7,565,104.05 | 24,137,501.27 |
| Loss of credit impairment (Loss is listed with “-”) | -81,621,384.13 | -164,446,765.99 |
| Losses of devaluation of asset (Loss is listed with “-”) | -55,134,397.60 | -56,496,124.06 |
| Income from assets disposal (Loss is listed with “-”) | 1,336,229.47 | 27,602,023.18 |
| III. Operating profit (Loss is listed with “-”) | 802,422,434.57 | 285,902,231.03 |
| Add: Non-operating income | 14,660,583.17 | 9,249,343.27 |
| Less: Non-operating expense | 7,732,783.31 | 8,487,764.98 |
| IV. Total profit (Loss is listed with “-”) | 809,350,234.43 | 286,663,809.32 |
| Less: Income tax expense | 36,147,590.26 | 9,565,346.81 |
| V. Net profit (Net loss is listed with “-”) | 773,202,644.17 | 277,098,462.51 |
| (i) Classify by business continuity | ||
| 1.continuous operating net profit (net loss listed with ‘-”) | 773,202,644.17 | 277,098,462.51 |
| 2.termination of net profit (net loss listed with ‘-”) | ||
| (ii) Classify by ownership | ||
| 1.Net profit attributable to owner’s of parent company | 741,038,108.54 | 244,538,734.49 |
| 2.Minority shareholders’ gains and losses | 32,164,535.63 | 32,559,728.02 |
| VI. Net after-tax of other comprehensive income | 433,908.69 | 184,552.23 |
| Net after-tax of other comprehensive income attributable to owners of parent company | 177,100.58 | 21,807.94 |
| (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 | 177,100.58 | 21,807.94 |
| 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 | 177,100.58 | 21,807.94 |
| 7.Other | ||
| Net after-tax of other comprehensive income attributable to minority shareholders | 256,808.11 | 162,744.29 |
| VII. Total comprehensive income | 773,636,552.86 | 277,283,014.74 |
| Total comprehensive income attributable to owners of parent Company | 741,215,209.12 | 244,560,542.43 |
| Total comprehensive income attributable to minority shareholders | 32,421,343.74 | 32,722,472.31 |
| VIII. Earnings per share: | ||
| (i) Basic earnings per share | 0.7195 | 0.2366 |
| (ii) Diluted earnings per share | 0.7195 | 0.2366 |
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 | 2023 | 2022 |
| I. Operating income | 9,608,398,530.57 | 7,398,328,633.00 |
| Less: Operating cost | 8,694,749,484.01 | 6,720,247,726.04 |
| Taxes and surcharge | 86,233,117.13 | 63,202,337.06 |
| Sales expenses | 274,974,268.69 | 189,954,443.11 |
| Administration expenses | 139,854,173.76 | 132,320,693.51 |
| R&D expenses | 281,165,357.51 | 245,429,316.63 |
| Financial expenses | -34,410,768.97 | -17,219,867.57 |
| Including: Interest expenses | 28,980,467.63 | 28,128,736.65 |
| Interest income | 91,292,890.78 | 77,631,152.76 |
| Add: Other income | 26,474,061.57 | 31,044,974.74 |
| Investment income (Loss is listed with “-”) | 190,286,552.58 | 79,584,251.32 |
| Including: Investment income on affiliated Company and joint venture | 18,713,956.61 | 11,196,374.66 |
| The termination of income recognition for financial assets measured by amortized cost (Loss is listed with “-”) | -6,157,758.00 | -4,767,753.29 |
| Net exposure hedging income (Loss is listed with “-”) | ||
| Changing income of fair value (Loss is listed with “-”) | 13,710,776.81 | 20,986,049.21 |
| Loss of credit impairment (Loss is listed with “-”) | -9,095,054.57 | -40,156,897.45 |
| Losses of devaluation of asset (Loss is listed with “-”) | -11,009,739.57 | -192,559.56 |
| Income on disposal of assets (Loss is listed with “-”) | 1,382,274.00 | 27,531,109.99 |
| II. Operating profit (Loss is listed with “-”) | 377,581,769.26 | 183,190,912.47 |
| Add: Non-operating income | 1,740,921.86 | 2,611,298.85 |
| Less: Non-operating expense | 3,452,240.92 | 2,250,917.85 |
| III. Total Profit (Loss is listed with “-”) | 375,870,450.20 | 183,551,293.47 |
| Less: Income tax | 17,525,416.84 | 2,648,942.71 |
| IV. Net profit (Net loss is listed with “-”) | 358,345,033.36 | 180,902,350.76 |
| (i) continuous operating net profit (net loss listed with ‘-”) | 358,345,033.36 | 180,902,350.76 |
| (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 | 358,345,033.36 | 180,902,350.76 |
| VII. Earnings per share: | ||
| (i) Basic earnings per share | 0.3479 | 0.1750 |
| (ii) Diluted earnings per share | 0.3479 | 0.1750 |
Legal Representative: Wu DinggangPerson in charge of accounting works: Pang HaitaoPerson in charge of accounting institute: Yang Jun
5. Consolidated Cash Flow Statement
In RMB
| Item | 2023 | 2022 |
| I. Cash flows arising from operating activities: | ||
| Cash received from selling commodities and providing labor services | 25,221,834,323.66 | 21,089,427,398.84 |
| 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 | 635,547,201.36 | 642,483,547.59 |
| Other cash received concerning | 109,951,859.80 | 218,923,533.27 |
| operating activities | ||
| Subtotal of cash inflow arising from operating activities | 25,967,333,384.82 | 21,950,834,479.70 |
| Cash paid for purchasing commodities and receiving labor service | 20,643,740,044.38 | 17,573,333,598.31 |
| Net increase of customer loans and advances | ||
| Net increase of deposits in central bank and interbank | ||
| Cash paid for original insurance contract compensation | ||
| Net increase of capital lent | ||
| Cash paid for interest, commission charge and commission | ||
| Cash paid for bonus of guarantee slip | ||
| Cash paid to/for staff and workers | 1,916,516,956.80 | 1,740,232,680.16 |
| Taxes paid | 563,839,013.94 | 516,256,689.43 |
| Other cash paid concerning operating activities | 760,894,064.66 | 655,855,763.74 |
| Subtotal of cash outflow arising from operating activities | 23,884,990,079.78 | 20,485,678,731.64 |
| Net cash flows arising from operating activities | 2,082,343,305.04 | 1,465,155,748.06 |
| II. Cash flows arising from investing activities: | ||
| Cash received from recovering investment | 1,290,000,000.00 | 923,322,268.35 |
| Cash received from investment income | 38,159,487.68 | 41,956,520.69 |
| Net cash received from disposal of fixed, intangible and other long-term assets | 4,122,107.93 | 78,341,283.79 |
| Net cash received from disposal of subsidiaries and other units | ||
| Other cash received concerning investing activities | 190,064,612.83 | 161,913,535.52 |
| Subtotal of cash inflow from investing activities | 1,522,346,208.44 | 1,205,533,608.35 |
| Cash paid for purchasing fixed, intangible and other long-term assets | 274,018,117.08 | 276,171,087.23 |
| Cash paid for investment | 1,531,781,453.97 | 1,300,000,000.00 |
| Net increase of mortgaged loans | ||
| Net cash received from subsidiaries and other units obtained | ||
| Other cash paid concerning investing activities | 116,256,169.35 | 135,747,164.72 |
| Subtotal of cash outflow from investing activities | 1,922,055,740.40 | 1,711,918,251.95 |
| Net cash flows arising from investing activities | -399,709,531.96 | -506,384,643.60 |
| III. Cash flows arising from financing activities: | ||
| Cash received from absorbing investment | 368,459,272.52 | |
| Including: Cash received from absorbing minority shareholders’ investment by subsidiaries | 368,459,272.52 | |
| Cash received from loans | 1,923,365,052.15 | 1,255,467,515.59 |
| Other cash received concerning financing activities | 370,831,446.18 | 23,536,567.33 |
| Subtotal of cash inflow from financing activities | 2,294,196,498.33 | 1,647,463,355.44 |
| Cash paid for settling debts | 1,489,564,263.12 | 1,522,040,918.37 |
| Cash paid for dividend and profit distributing or interest paying | 133,439,380.60 | 109,680,687.85 |
| Including: Dividend and profit of minority shareholder paid by subsidiaries | 16,677,010.63 | 25,417,858.64 |
| Other cash paid concerning financing activities | 89,323,864.66 | 770,652,259.57 |
| Subtotal of cash outflow from financing activities | 1,712,327,508.38 | 2,402,373,865.79 |
| Net cash flows arising from financing activities | 581,868,989.95 | -754,910,510.35 |
| IV. Influence on cash and cash equivalents due to fluctuation in exchange rate | 13,403,803.08 | 69,166,544.08 |
| V. Net increase of cash and cash equivalents | 2,277,906,566.11 | 273,027,138.19 |
| Add: Balance of cash and cash equivalents at the period -begin | 6,113,222,069.76 | 5,840,194,931.57 |
| VI. Balance of cash and cash equivalents at the period -end | 8,391,128,635.87 | 6,113,222,069.76 |
Legal Representative: Wu DinggangPerson in charge of accounting works: Pang HaitaoPerson in charge of accounting institute: Yang Jun
6. Cash Flow Statement of Parent Company
In RMB
| Item | 2023 | 2022 |
| I. Cash flows arising from operating activities: | ||
| Cash received from selling commodities and providing labor services | 8,764,645,288.77 | 7,440,766,977.75 |
| Write-back of tax received | 219,064,162.92 | 224,205,911.53 |
| Other cash received concerning operating activities | 39,429,001.18 | 75,592,511.92 |
| Subtotal of cash inflow arising from operating activities | 9,023,138,452.87 | 7,740,565,401.20 |
| Cash paid for purchasing commodities and receiving labor service | 7,020,255,494.88 | 6,385,517,418.45 |
| Cash paid to/for staff and workers | 555,776,356.25 | 508,284,706.96 |
| Taxes paid | 130,615,286.70 | 67,235,152.14 |
| Other cash paid concerning operating activities | 247,010,356.89 | 227,845,615.46 |
| Subtotal of cash outflow arising from operating activities | 7,953,657,494.72 | 7,188,882,893.01 |
| Net cash flows arising from operating activities | 1,069,480,958.15 | 551,682,508.19 |
| II. Cash flows arising from investing activities: | ||
| Cash received from recovering investment | 170,094,761.15 | 457,300,378.10 |
| Cash received from investment income | 252,919,498.24 | 82,054,474.12 |
| Net cash received from disposal of fixed, intangible and other long-term assets | 4,023,955.68 | 78,191,029.45 |
| Net cash received from disposal of subsidiaries and other units | ||
| Other cash received concerning investing activities | 92,192,116.86 | 82,511,271.70 |
| Subtotal of cash inflow from investing activities | 519,230,331.93 | 700,057,153.37 |
| Cash paid for purchasing fixed, intangible and other long-term assets | 145,165,539.29 | 164,617,367.95 |
| Cash paid for investment | 239,391,719.60 | 730,000,000.00 |
| Net cash received from subsidiaries and other units obtained | ||
| Other cash paid concerning investing activities | 54,598,530.06 | 49,326,025.46 |
| Subtotal of cash outflow from investing activities | 439,155,788.95 | 943,943,393.41 |
| Net cash flows arising from investing activities | 80,074,542.98 | -243,886,240.04 |
| III. Cash flows arising from financing activities: | ||
| Cash received from absorbing investment | ||
| Cash received from loans | 1,917,365,052.15 | 1,189,467,515.59 |
| Other cash received concerning financing activities | 191,861,996.18 | 3,251,034.56 |
| Subtotal of cash inflow from financing activities | 2,109,227,048.33 | 1,192,718,550.15 |
| Cash paid for settling debts | 1,433,564,263.12 | 1,502,040,918.37 |
| Cash paid for dividend and profit distributing or interest paying | 115,586,128.29 | 81,201,833.46 |
| Other cash paid concerning financing activities | 52,320,157.85 | 264,626,271.90 |
| Subtotal of cash outflow from financing activities | 1,601,470,549.26 | 1,847,869,023.73 |
| Net cash flows arising from financing activities | 507,756,499.07 | -655,150,473.58 |
| IV. Influence on cash and cash equivalents due to fluctuation in exchange rate | 1,866,961.18 | 19,360,991.70 |
| V. Net increase of cash and cash equivalents | 1,659,178,961.38 | -327,993,213.73 |
| Add: Balance of cash and cash equivalents at the period -begin | 3,086,968,775.61 | 3,414,961,989.34 |
| VI. Balance of cash and cash equivalents at the period -end | 4,746,147,736.99 | 3,086,968,775.61 |
Legal Representative: Wu Dinggang Person in charge of accounting works: Pang Haitao Person in charge ofaccounting institute: Yang Jun
长虹美菱股份有限公司2023年年度报告
7. Statement of Changes in Owners’ Equity (Consolidated)
This Period
In RMB
| Item | 2023 | ||||||||||||||
| 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 | 1,029,923,715.00 | 2,806,493,904.30 | -20,881,462.63 | 2,467,205.78 | 441,201,471.98 | 909,082,037.66 | 5,168,286,872.09 | 370,748,395.26 | 5,539,035,267.35 | ||||||
| Add: Changes of accounting policy | 17,219.50 | 167,328.13 | 184,547.63 | -8,145.54 | 176,402.09 | ||||||||||
| Error correction of the last | |||||||||||||||
长虹美菱股份有限公司2023年年度报告
| period | |||||||||||||||
| Other | |||||||||||||||
| II. The beginning balance of the current year | 1,029,923,715.00 | 2,806,493,904.30 | -20,881,462.63 | 2,467,205.78 | 441,218,691.48 | 909,249,365.79 | 5,168,471,419.72 | 370,740,249.72 | 5,539,035,267.35 | ||||||
| III. Increase/ Decrease in the period (Decrease is listed with “-”) | -990,446.53 | 177,100.58 | 8,779,606.13 | 35,834,503.34 | 612,510,470.85 | 656,311,234.37 | -1,488,117.35 | 654,823,117.02 | |||||||
| (i) Total comprehensive income | 177,100.58 | 741,038,108.54 | 741,215,209.12 | 32,421,343.74 | 773,636,552.86 | ||||||||||
| (ii) Owners’ devoted and decreased capital | -990,446.53 | -990,446.53 | -18,627,553.47 | -19,618,000.00 | |||||||||||
| 1.Common shares invested by |
长虹美菱股份有限公司2023年年度报告
| shareholders | |||||||||||||||
| 2. Capital invested by holders of other equity instruments | |||||||||||||||
| 3. Amount reckoned into owners equity with share-based payment | |||||||||||||||
| 4. Other | -990,446.53 | -990,446.53 | -18,627,553.47 | -19,618,000.00 | |||||||||||
| (iii) Profit distribution | 35,834,503.34 | -128,527,637.69 | -92,693,134.35 | -16,677,010.63 | -109,370,144.98 | ||||||||||
| 1. Withdrawal of surplus | 35,834,503.34 | -35,834,503.34 |
长虹美菱股份有限公司2023年年度报告
| reserves | |||||||||||||||
| 2. Withdrawal of general risk provisions | |||||||||||||||
| 3. Distribution for owners (or shareholders) | -92,693,134.35 | -92,693,134.35 | -16,677,010.63 | -109,370,144.98 | |||||||||||
| 4. Other | |||||||||||||||
| (iv) Carrying forward internal owners’ equity | |||||||||||||||
| 1. Capital reserves conversed to capital (share capital) | |||||||||||||||
| 2. Surplus reserves conversed |
长虹美菱股份有限公司2023年年度报告
| 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 | 8,779,606.13 | 8,779,606.13 | 1,395,103.01 | 10,174,709.14 |
长虹美菱股份有限公司2023年年度报告
| 1. Withdrawal in the report period | 31,277,872.27 | 31,277,872.27 | 2,105,658.15 | 33,383,530.42 | |||||||||||
| 2. Usage in the report period | 22,498,266.14 | 22,498,266.14 | 710,555.14 | 23,208,821.28 | |||||||||||
| (vi) Others | |||||||||||||||
| IV. Balance at the end of the period | 1,029,923,715.00 | 2,805,503,457.77 | -20,704,362.05 | 11,246,811.91 | 477,053,194.82 | 1,521,759,836.64 | 5,824,782,654.09 | 369,252,132.37 | 6,194,034,786.46 |
Last Period
In RMB
| Item | 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 | 1,04 | 2,68 | 26,4 | - | 423,111,236.9 | 734,129,724.0 | 4,837,334,400. | 157,456,980.84 | 4,994,791,381.05 | ||||||
长虹美菱股份有限公司2023年年度报告
| balance of the previous year | 4,597,881.00 | 2,829,400.26 | 30,571.38 | 20,903,270.57 | 0 | 0 | 21 | ||||||||
| Add: Changes of accounting policy | |||||||||||||||
| Error correction of the last period | |||||||||||||||
| Enterprise combine under the same control | |||||||||||||||
| Other | 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 | ||||||
| II. The beginning balance of the current year | -14,674,166.00 | 123,664,504.04 | -26,430,571.38 | 21,807.94 | 2,467,205.78 | 18,090,235.08 | 174,952,313.66 | 330,952,471.88 | 213,291,414.42 | 544,243,886.30 | |||||
| III. Increase/ Decrease in the period (Decrease is listed with “-”) | 21,807.94 | 244,538,734.49 | 244,560,542.43 | 32,722,472.31 | 277,283,014.74 | ||||||||||
| (i) Total comprehensive income | -14,674,166.00 | 123,664,504.04 | -26,430,571.38 | 135,420,909.42 | 205,763,149.35 | 341,184,058.77 | |||||||||
| (ii) Owners’ | - | - | - | -737,262.35 | 228,415,223.18 | 227,677,960.83 |
长虹美菱股份有限公司2023年年度报告
| devoted and decreased capital | 14,674,166.00 | 12,493,667.73 | 26,430,571.38 | ||||||||||||
| 1.Common shares invested by shareholders | |||||||||||||||
| 2. Capital invested by holders of other equity instruments | |||||||||||||||
| 3. Amount reckoned into owners equity with share-based payment | 136,158,171.77 | 136,158,171.77 | -22,652,073.83 | 113,506,097.94 | |||||||||||
| 4. Other | 18,090,235.08 | -69,586,420.83 | -51,496,185.75 | -25,417,858.64 | -76,914,044.39 | ||||||||||
| (iii) Profit distribution | 18,090,235.08 | -18,090,235.08 | |||||||||||||
| 1. Withdrawal of surplus reserves | |||||||||||||||
| 2. Withdrawal of general risk provisions | -51,496,185.75 | -51,496,185.75 | -25,417,858.64 | -76,914,044.39 | |||||||||||
| 3. Distribution for owners (or shareholders) | |||||||||||||||
| 4. Other |
长虹美菱股份有限公司2023年年度报告
| (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 | 2,467,205.78 | 2,467,205.78 | 223,651.40 | 2,690,857.18 | |||||||||||
| (v) Reasonable reserve | 2,467,205.7 | 2,467,205.78 | 223,651.40 | 2,690,857.18 |
长虹美菱股份有限公司2023年年度报告
| 8 | |||||||||||||||
| 1. Withdrawal in the report period | |||||||||||||||
| 2. Usage in the report period | |||||||||||||||
| (vi) Others | 1,029,923,715.00 | 2,806,493,904.30 | -20,881,462.63 | 2,467,205.78 | 441,201,471.98 | 909,082,037.66 | 5,168,286,872.09 | 370,748,395.26 | 5,539,035,267.35 | ||||||
| IV. Balance at the end of the period |
Legal Representative: Wu Dinggang Person in charge of accounting works: Pang Haitao Person in charge of accounting institute: Yang Jun
8. Statement of Changes in Owners’ Equity (Parent Company)
This Period
In RMB
| Item | 2023 | |||||||||||
| 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 | 1,029,923,715.00 | 2,740,508,510.57 | 687,069.38 | 440,983,306. | 1,064,136,866.98 | 5,276,239,468.23 | ||||||
长虹美菱股份有限公司2023年年度报告
| 30 | ||||||||||||
| Add: Changes of accounting policy | 17,219.50 | 154,975.45 | 172,194.95 | |||||||||
| Error correction of the last period | ||||||||||||
| Other | ||||||||||||
| II. The beginning balance of the current year | 1,029,923,715.00 | 2,740,508,510.57 | 687,069.38 | 441,000,525.80 | 1,064,291,842.43 | 5,276,411,663.18 | ||||||
| III. Increase/ Decrease in the period (Decrease is listed with “-”) | -181,957.63 | 35,834,503.34 | 229,817,395.67 | 265,469,941.38 | ||||||||
| (i) Total comprehensive income | 358,345,033.36 | 358,345,033.36 | ||||||||||
| (ii) Owners’ devoted and decreased capital | ||||||||||||
| 1.Common shares invested by shareholders |
长虹美菱股份有限公司2023年年度报告
| 2. Capital invested by holders of other equity instruments | ||||||||||||
| 3. Amount reckoned into owners equity with share-based payment | ||||||||||||
| 4. Other | ||||||||||||
| (iii) Profit distribution | 35,834,503.34 | -128,527,637.69 | -92,693,134.35 | |||||||||
| 1. Withdrawal of surplus reserves | 35,834,503.34 | -35,834,503.34 | ||||||||||
| 2. Distribution for owners (or shareholders) | -92,693,134.35 | -92,693,134.35 | ||||||||||
| 3. Other | ||||||||||||
| (iv) Carrying forward internal owners’ equity |
长虹美菱股份有限公司2023年年度报告
| 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 | -181,957.63 | -181,957.63 |
长虹美菱股份有限公司2023年年度报告
| 1. Withdrawal in the report period | 8,557,762.79 | 8,557,762.79 | ||||||||||
| 2. Usage in the report period | 8,739,720.42 | 8,739,720.42 | ||||||||||
| (vi) Others | ||||||||||||
| IV. Balance at the end of the period | 1,029,923,715.00 | 2,740,508,510.57 | 505,111.75 | 476,835,029.14 | 1,294,109,238.10 | 5,541,881,604.56 |
Last period
In RMB
| Item | 2022 | |||||||||||
| 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 | 2,753,002,178.30 | 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 | ||||||||||||
长虹美菱股份有限公司2023年年度报告
| 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 | 687,069.38 | 18,090,235.08 | 111,315,929.93 | 129,355,972.04 | |||||
| (i) Total comprehensive income | 180,902,350.76 | 180,902,350.76 | ||||||||||
| (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 |
长虹美菱股份有限公司2023年年度报告
| owners equity with share-based payment | ||||||||||||
| 4. Other | ||||||||||||
| (iii) Profit distribution | 18,090,235.08 | -69,586,420.83 | -51,496,185.75 | |||||||||
| 1. Withdrawal of surplus reserves | 18,090,235.08 | -18,090,235.08 | ||||||||||
| 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) |
长虹美菱股份有限公司2023年年度报告
| 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 | 687,069.38 | 687,069.38 | ||||||||||
| 1. Withdrawal in the report period | 687,069.38 | 687,069.38 | ||||||||||
| 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 | 687,069.38 | 440,983,306.30 | 1,064,136,866.98 | 5,276,239,468.23 |
长虹美菱股份有限公司2023年年度报告
Legal Representative: Wu Dinggang Person in charge of accounting works: Pang Haitao Person in charge of accounting institute: Yang Jun
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2023 to December 31, 2023（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 Meiling Co.,Ltd. is an incorporated Company established and reorganized by Hefei Meiling Refrigerator General Factory andapproved on June 12
th1992 through [WanTiGaiHanZi (1992) No.039] issued by original Mechanism ReformCommittee of Anhui Province. On August 30
th1993, through Anhui Provincial Government [Wanzhenmi (1993)No.166] and re-examination of China Securities Regulatory Commission, the Company made first public issue for30 million A shares and the Company was listed on Oct. 18
th, 1993 in Shenzhen Stock Exchange. On August 13
th,1996, the Company was approved to issue 100 million B shares to investors abroad through [ZhengWeiFa (1996)No.26] issued by China Securities Regulatory Commission. The Company went public in Shenzhen Stock Exchangeon August 28
th, 1996.State-owned Assets Supervision & Administration Commission of the State Council approved such transfers withDocument 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 to asMeiling Group) transferred its holding 37,852,683 shares in 82,852,683 state-owned shares of the Company toSichuan Changhong Electronic Group Co., Ltd (hereinafter referred to as Changhong Group), other 45,000,000shares to Sichuan Changhong Electric Co. Ltd (hereinafter referred to as Sichuan Changhong). On Aug 15, 2007,the above ownership was transferred and Cleaning Corporation Limited.On 27 August 2007, State-owned Assets Supervision & Administration Commission of Anhui ProvincialGovernment replied with Document [WGZCQH (2007) No.309] Reply on “Related Matters of Share MergerReform of Hefei Meiling Co., Ltd.”, agreed the Company’s ownership split reform plan. The Company madeconsideration that non-tradable share holders deliver 1.5 shares to A share holders per 10 shares, and originalMeiling Group made prepayment 3,360,329 shares for some non-tradable share holders as consideration for splitreform plan.On 29 May 2008, concerning 34,359,384 state-owned shares (including 3,360,329 shares paid for other non-tradableshareholders by original Meiling Group in share reform) held by original Meiling Group, the “Notice of FreelyTransfer of Meiling Electrics Equity held by Meiling Group”[HGZCQ(2008) No. 59] issued from State-ownedAssets Supervision & Administration Commission of Hefei Municipal, agrees to transfer the above said shares toHefei Xingtai Holding Group Co., Ltd.(“Xingtai Holding Co.,”) for free. On 7 August 2008, the “Reply of TransferFreely of Part of the Shares of Hefei Meiling Co., Ltd. held by State-owned shareholders” [GZCQ (2007) No. 752]issued by SASAC, agrees the above said transferring.On October 29, 2008, Changhong Group signed Agreement on Equity Transfer of Hefei Meiling Co., Ltd withSichuan 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 Freelyof Part of the Shares of Hefei Meiling Co., Ltd. held by State-owned shareholders” [GZCQ (2008) No. 1413] issuedby 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
ndExtraordinary
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2023 to December 31, 2023（Unless other wise specified, RMB for record in the statement)
Shareholders’ 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 price ofRMB 10.28/share. Capital collecting amounting to RMB 1,199,999,820 after issuing expenses RMB 22,045,500deducted, net capital collected amounting to RMB 1,177,954,320, and paid-in capital (share capital) increased RMB116,731,500 with capital reserve (share premium) RMB 1,061,106,088.5 increased. The increasing capital has beenverified by Capital Verification Report No.: ［XYZH2010CDA6021］issued from Shin Wing CPA Co., Ltd.On 20 June 2011, the general meeting of the Company considered and approved the 2010 profit distribution plan,namely to distribute cash dividends of RMB0.5 (tax included) plus two shares for every ten shares held byshareholders to all shareholders, based on the total share capital of 530,374,449 shares as of 31 December 2010.The total share capital of the Company upon profit distribution increased to 636,449,338 shares. The capital increasewas verified by Anhui Huashen Zhengda Accounting Firm with the verification report WHSZDKYZ (2011) No.141.On 26 June 2012, the general meeting of the Company considered and approved the 2011 profit distribution andcapitalization of capital reserve plan, namely to distribute cash dividends of RMB0.5 (tax included) plus two sharesfor every ten shares to all shareholders capitalized from capital reserve, based on the total share capital of636,449,338 shares as of 31 December 2011. The total share capital of the Company upon implementation ofcapitalization of capital reserve increased to 763,739,205 shares from 636,449,338 shares, and was verified byAnhui 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 the firstextraordinary general meeting in 2016, and approved by the document of China Securities Regulatory Commission[CSRC License No. (2016) 1396] “Reply to the approval of non-public offering of shares of Hefei Meiling Co.,Ltd.”, the company has actually raised funds of 1,569,999,998.84 yuan by non-public offering of no more than334,042,553 new shares at face value of 1 yuan per share and with issue price no less than 4.70 yuan per share, afterdeducting the issue costs of 29,267,276.08 yuan, the net amount of raised funds is 1,540,732,722.76 yuan, theincreased paid-in capital (share capital) of 280,858,676.00 yuan, increased capital reserve (share premium) of1,259,874,046.76 yuan. This capital increase has been verified by No.［XYZH2016CDA40272］capital verificationreport of Shine Wing Certified Public Accountants (LLP).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, and completed the cancellation procedures of the repurchased shares at theShenzhen 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.Ended as December 31, 2023, total share capital of the Company amounting to 1,029,923,715shares with ordinaryshares in full. Among which, 881,733,881 shares of A-share accounting 85.62% in total shares while B-share with148,189,834 shares accounting 14.38% in total shares. Specific capital structure is as follows:
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2023 to December 31, 2023（Unless other wise specified, RMB for record in the statement)
| Type of stock | Quantity | Proportion |
| (I)Restricted shares | 7,688,842.00 | 0.75 |
| 1. State-owned shares | ||
| 2. State-owned legal person’s shares | 1,141,053.00 | 0.11 |
| 3. Other domestic shares | 5,280,369.00 | 0.52 |
| Including: Domestic legal person’s shares | 3,363,539.00 | 0.33 |
| Domestic natural person’s shares | 1,916,830.00 | 0.19 |
| 4. Foreign shares | 1,267,420.00 | 0.12 |
| Including: Overseas legal person’s shares | ||
| Overseas natural person’s shares | 1,267,420.00 | 0.12 |
| (II)Unrestricted shares | 1,022,234,873.00 | 99.25 |
| 1. RMB Ordinary shares | 875,312,459.00 | 84.99 |
| 2. Domestically listed foreign shares | 146,922,414.00 | 14.26 |
| 3. Overseas listed foreign shares | ||
| 4. Others | ||
| Total shares | 1,029,923,715.00 | 100.00 |
The Company belongs to the electrical machinery and equipment manufacturing industry, and engaged in theproduction and sale of refrigerator, freezer and air-conditioner. Unified social credit code of the Company:
9134000014918555XK; Address: No.2163, Lianhua Road, Economy and Technology Development Zone, HefeiCity; Legal Representative: Wu Dinggang; register capital (paid-in capital): 1,029,923,715 yuan; type of company:
limited liability company(joint venture and listed of Taiwan, Hong Kong and Macao)This financial statement was approved by the Board of Directors of the Company on March 28, 2024. According tothe Articles of Association of the Company, the financial statement will be submitted to the General Meeting ofShareholders for review.II.Basis for preparation of financial statement
1.Basis for preparation
According to the actual transactions and matters, the Company's financial statements are prepared in accordancewith the Accounting Standards for Business Enterprises and its application guidelines, explanations and otherrelevant provisions (hereinafter referred to as "Accounting Standards for Business Enterprises") promulgated by theMinistry of Finance, as well as the disclosure-related provisions of No.15 Rules on Information Disclosure andCompilation of Companies Offering Securities to the Public - General Provisions on Financial Reports (revised in2023) issued by China Securities Regulatory Commission (hereinafter referred to as "CSRC").
2.Continuous operation
The Company recently has a history of profitability operation and has financial resources supporting, and preparedthe financial statement on basis of going concern is reasonable.III.Significant Accounting Policy and accounting EstimationSpecific accounting policies and accounting estimates: The specific accounting policies and accounting estimates
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2023 to December 31, 2023（Unless other wise specified, RMB for record in the statement)
formulated by the Company according to the actual production and operation characteristics include bad debtprovision of receivable, inventory depreciation provision, capitalization conditions of R&D expenses, revenuerecognition and measurement, etc.
1.Statement on observation of accounting standards for enterprise
The financial statements prepared by the Company meet the requirements of the Accounting Standards for BusinessEnterprises, and truly, accurately and completely reflect the financial status of the Company on December 31, 2023,as well as the operating results and cash flow in 2023.
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.Determination method and selection basis of importance standard
The Company follows the principle of materiality in preparing and disclosing financial statements. Thematters disclosed in the notes to the financial statements involving judgement by materiality standard, and thedetermination method and selection basis of materiality standard are as follows:
| Matters disclosed involving the judgment by materiality standards | Determination method and selection basis of importance standard |
| Recovery or reversal of important accounts receivable bad debt reserves | The individual recovery or reversal amount accounts for more than 10% of the total recovery or reversal amount of accounts receivable, and the amount is greater than RMB 10 million |
| Actual write off of important accounts receivable | The single item write off amount accounts for more than 10% of the total bad debt write off amount of various receivables, and the amount is greater than 5 million yuan |
| Important accounts receivable with single provision for bad debt reserves | The single provision amount accounts for 10% of the total bad debt provision for various accounts receivable and is greater than RMB 50 million |
| Important debt investment | Single debt investment accounts for 5% of the total debt investment and the amount is greater than RMB 20 million |
| Significant changes in the book value of contract assets | The change in the book value of contract assets accounts for more than 30% of the initial balance of contract assets |
| Important ongoing projects | The budget for a single project is greater than RMB 50 million |
| Important capitalized research and development projects | The budget for a single project is greater than RMB 20 million |
| Significant changes in the book value of contractual liabilities | The change in the book value of contractual liabilities accounts for more than 30% of the initial balance of contractual liabilities |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2023 to December 31, 2023（Unless other wise specified, RMB for record in the statement)
| Matters disclosed involving the judgment by materiality standards | Determination method and selection basis of importance standard |
| Important accounts payable | Accounts payable with a single account age exceeding 1 year account for more than 5% of the total accounts payable and with an amount greater than RMB 100 million |
| Important other payables | Other payables with a single account age exceeding 1 year account for more than 5% of the total other payables and an amount greater than RMB 50 million |
| Important non wholly-owned subsidiaries | Subsidiary net assets account for over 1% of the company's net assets |
| Important joint ventures or associates | The book value of long-term equity investments in a single invested entity accounts for more than 1% of the company's net assets and the amount is greater than RMB 50 million, or the investment gains and losses under the equity method account for more than 1% of the company's consolidated net profit |
| Important investment activities | Individual investment activities account for more than 10% of the total cash inflows or outflows related to received or paid investment activities, and the amount is greater than RMB 100 million |
| Significant activities that do not involve current cash inflows and outflows | Not involving current cash inflows and outflows, with an impact on the current financial statements greater than 10% of net assets |
6.Accountant arrangement method of business combination under common control and not under common controlAs acquirer, the Company measures the assets and liabilities acquired through business combination under commoncontrol at their carrying values as reflected in the consolidated financial statement of the ultimate controller as ofthe combination date. Capital reserve shall be adjusted in respect of any difference between carrying value of thenet assets acquired and carrying value of the combination consideration paid. In case that capital reserve isinsufficient to offset, the Company would adjust retained earnings.
The acquiree’s net identifiable assets, liabilities or contingent liabilities acquired through business combination notunder common control shall be measured at fair value as of the acquisition date. The cost of combination representsthe fair value of the cash or non-cash assets paid, liabilities issued or committed and equity securities issued by theCompany as at the date of combination in consideration for acquiring the controlling power in the acquiree, togetherwith the sum of any directly related expenses occurred during business combination(in case of such businesscombination as gradually realized through various transactions, the combination cost refers to the sum of each costof respective separate transaction). Where the cost of the combination exceeds the acquirer’s interest in the fairvalue of the acquirer’s identifiable net assets acquired, the difference is recognized as goodwill; where the cost ofcombination is lower than the acquirer’s interest in the fair value of the acquiree’s identifiable net assets, theCompany shall firstly make further review on the fair values of the net identifiable assets, liabilities or contingentliabilities acquired as well as the fair value of the non-cash assets portion of combination consideration or the equitysecurities issued by the Company. In case that the Company finds the cost of combination is still lower than the
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2023 to December 31, 2023（Unless other wise specified, RMB for record in the statement)
acquirer’s interest in the fair value of the acquiree’s identifiable net assets after such further review, the differenceis recognized in non-operating income for the current period when combination occurs.
7.Criteria for Control and Preparation Method of Consolidated Financial Statements
Control means that the Company has the power over the investee, enjoys variable returns by participating inthe related activities of the investee, and has the ability to influence the amount of returns by using the power overthe investee.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 the subsidiariesand the Company shall be adjusted in the consolidated financial statements.All the material inter-company transactions, non-extraordinary items and unrealized profit within the combinationscope are written-off when preparing consolidated financial statement. Owners’ equity of subsidiary not attributableto parent company and current net gains and losses, other comprehensive income and total comprehensive incomeattributable to minority shareholders are recognized as non-controlling interests, minority interests, othercomprehensive income attributable to minority shareholders and total comprehensive income attributable tominority shareholders in consolidated financial statement respectively.As for subsidiary acquired through business combination under common control, its operating results and cash flowwill be included in consolidated financial statement since the beginning of the period when combination occurs.When preparing comparative consolidated financial statement, the relevant items in previous years financialstatement shall be adjusted as if the reporting entity formed upon combination has been existing since the ultimatecontroller commenced relevant control.As for equity interests of the investee under common control acquired through various transactions which eventuallyformed business combination, the Company shall supplement disclosure of the accounting treatment in consolidatedfinancial statement in the reporting period when controlling power is obtained. For example, as for equity interestsof the investee under common control acquired through various transactions which eventually formed businesscombination, adjustments shall be made as if the current status had been existing when the ultimate controllercommenced control in connection of preparing consolidated financial statement; in connection with preparingcomparative statement, the Company shall consolidate the relevant assets and liabilities of the acquiree into theCompany’s comparative consolidated financial statement to the extent not earlier than the timing when the Companyand the acquiree are all under control of the ultimate controller, and the net assets increased due to combinationshall be used to adjust relevant items under owners’ equity in comparative statement. In order to prevent doublecomputation of the value of the acquiree’s net assets, the relevant profits and losses, other comprehensive incomeand change of other net assets recognized during the period from the date when the Company acquires originalequity interests and the date when the Company and the acquiree are all under ultimate control of the same party(whichever is later) to the date of combination in respect of the long-term equity investment held by the Companybefore satisfaction of combination shall be utilized to offset the beginning retained earnings and current gains and
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2023 to December 31, 2023（Unless other wise specified, RMB for record in the statement)
losses in the period as the comparative financial statement involves, respectively.As for subsidiary acquired through business combination not under common control, its operating results and cashflow will be included in consolidated financial statement since the Company obtains controlling power. Whenpreparing consolidated financial statement, the Company shall adjust the subsidiary’s financial statement based onthe fair value of the various identifiable assets, liabilities or contingent liabilities recognized as of the acquisitiondate.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 treatment inconsolidated financial statement in the reporting period when controlling power is obtained. For example, as forequity interests of the investee not under common control acquired through various transactions which eventuallyformed business combination, when preparing consolidated financial statement, the Company would re-measurethe equity interests held in the acquiree before acquisition date at their fair value as of the acquisition date, and anydifference between the fair value and carrying value is included in current investment income. in case that the equityinterests in acquiree held by the Company before the relevant acquisition date involves other comprehensive incomeat equity method and change of other owners’ equity (other than net gains and losses, other comprehensive incomeand profit distribution), then the equity interests would transfer to investment gains and losses for the period whichthe acquisition date falls upon. The other comprehensive income arising from change of the net liabilities or netassets under established benefit scheme as acquiree’s re-measured such scheme is excluded.The transaction with non-controlling interest to dispose long-term equity investment in a subsidiary without losingcontrol rights over the subsidiary, the difference between the proceeds from disposal of interests and the decreaseof the shared net assets of the subsidiary is adjusted to capital premium (share premium). In case capital reserve isnot sufficient to offset the difference, retained earnings will be adjusted.As for disposal of part equity investment which leads to losing control over the investee, the Company would re-measure the remaining equity interests at their fair value as of the date when the Company loses control over theinvestee when preparing consolidated financial statement. The sum of consideration received from disposal ofequity interest and fair value of the remaining equity interest, less the net assets of the original subsidiary attributableto the Company calculated based on the original shareholding proportion since the acquisition date or the date thenconsolidation commences, is included in investment gains and losses for the period when control is lost, meanwhileto offset goodwill. Other comprehensive income related to equity interest investment in original subsidiaries istransferred into current investment gains and losses upon lost of control.If the disposal of the equity investment of subsidiary is realized through multi pletran section sunlit loss of controland is a pack age deal. the accounting treatment of the sterna sections should be dealt with as one transaction ofdisposal of the subsidiary until loss of control. However, before the Company loses total control of thesubsidiary, the differences between the actual disposal price and the share of the net assets of the subsidiarydisposed of in every transaction should be recognized as other comprehensive income in the consolidated financialstatements, and transferred to profit or loss when losing control.
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2023 to December 31, 2023（Unless other wise specified, RMB for record in the statement)
8. 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 for jointlycontrolled entity, the Company determines the assets held and liabilities assumed separately as a party to the jointlycontrolled entity, recognizes such assets and liabilities according to its proportion, and recognizes relevant incomeand expense separately under relevant agreement or according to its proportion. As for asset transaction relating topurchase and sales with the jointly controlled entity which does not constitute business activity, part of the gainsand losses arising from such transaction attributable to other participators of the jointly controlled entity is onlyrecognized.
9.Cash and cash equivalents
Cash in the cash flow statement comprises the Group’s cash on hand and deposits that can be readily with drawnon 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 aninsignificantriskofchanges in value.
10. Foreign currency business and foreign currency financial statement conversion
(1) Foreign currency business
As for the foreign currency business, the Company converts the foreign currency amount into RMB amount pursuantto the spot exchange rate as of the business day. As at the balance sheet date, monetary items expressed by foreigncurrency are converted into RMB pursuant to the spot exchange rate as of the balance sheet date. The conversiondifference occurred is recorded into prevailing gains and losses, other than the disclosure which is made accordingto capitalization rules for the exchange difference occurred from the special foreign currency borrowings borrowedfor constructing and producing the assets satisfying condition of capitalization. As for the foreign currency non-monetary items measured by fair value, the amount is then converted into RMB according to the spot exchange rateas of the confirmation day for fair value. And the conversion difference occurred during the procedure is recordedinto prevailing gains and losses directly as change of fair value. As for the foreign currency non-monetary itemsmeasured by historical cost, conversion is made with the spot exchange rate as of the business day, with no changein RMB amount.
(2) Conversion of foreign currency financial statement
Spot exchange rate as of the balance sheet date is adopted for conversion of assets and liabilities in foreign currencybalance sheet; as for the items in statement of owners’ equity except for “Retained profit”, conversion is madepursuant to the spot exchange rate of business day; income and expense items in income statement then are alsoconverted pursuant to the spot exchange rate of transaction day. Difference arising from the aforementionedconversions shall be listed separately in items of owners’ equity. Spot exchange rate as of the occurrence date ofcash flow is adopted for conversion of foreign currency cash flow. The amount of cash affected by exchange ratemovement shall be listed separately in cash flow statement.
11. Financial assets and liabilities
A financial asset or liability is recognized when the group becomes a party to a financial instrument contract. The
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2023 to December 31, 2023（Unless other wise specified, RMB for record in the statement)
financial assets and financial liabilities are measured at fair value on initial recognition. For the financial assets andliabilities measured by fair value and with variation reckoned into current gains/losses, the related transactionexpenses are directly included in current gains or losses; for other types of financial assets and liabilities, the relatedtransaction 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 transferring aliability in an orderly transaction that occurs on the measurement date. For a financial instrument having an activemarket, the Company uses the quoted prices in the active market to determine its fair value. Quotations in an activemarket 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 length transaction. If there is no activemarket for a financial instrument, the Company uses valuation techniques to determine its fair value. Valuationtechniques include reference to prices used in recent market transactions by parties familiar with the situation andthrough voluntary trade, and reference to current fair values of other financial instruments that are substantiallyidentical, 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 other comprehensiveincome; and the financial assets measured by fair value and with variation reckoned into current gains/losses. Theclassification of financial assets depends on the business model that the Group's enterprises manage the financialassets 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; thecontractual terms of the financial assets stipulate that cash flow generated on a specific date is only paid for theprincipal and interest based on the outstanding principal amount. For such financial assets, the effective interestmethod is used for subsequent measurement according to the amortized cost, and the gains or losses arising fromamortization or impairment are included in current profits and losses. Such financial assets mainly include monetaryfunds, notes receivable, accounts receivable, other receivables, debt investment and long-term receivables, and soon. The Group lists the debt investment and long-term receivables due within one year (including one year) fromthe balance sheet date as non-current assets due within one year, and lists the debt investment with time limit withinone 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 in othercomprehensive income when they also meet the following conditions: The Group's business model for managingthe financial assets is targeted at both the collection of contractual cash flows and the sale of financial assets; the
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2023 to December 31, 2023（Unless other wise specified, RMB for record in the statement)
contractual terms of the financial asset stipulate that the cash flow generated on a specific date is only the paymentof the principal and the interest based on the outstanding principal amount. For such financial assets, fair value isused for subsequent measurement. The discount or premium is amortized by using the effective interest method andis recognized as interest income or expenses. Except the impairment losses and the exchange differences of foreigncurrency monetary financial assets are recognized as the current profits and losses, the changes in the fair value ofsuch financial assets are recognized as other comprehensive income until the financial assets are derecognized, theaccumulated gains or losses are transferred to the current profits and losses. Interest income related to such financialassets is included in the current profit and loss. Such financial assets are listed as other debt investments, other debtinvestments due within one year (including one year) from the balance sheet date are listed as non-current assetsdue within one year; and other debt investments with time limit within one year (including one year) when acquiredare listed as other current assets.
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 financial assetsmeasured at fair value and whose changes are included in other comprehensive income are classified as financialassets measured at fair value and whose changes are included in current profits and losses, which adopt fair valuefor subsequent measurement and all changes in fair value are included in current profits and losses. The Groupclassifies non-trading equity instruments as financial assets measured at fair value and whose changes are includedin current profits and losses. Such financial assets are presented as trading financial assets, and those expire aftermore than one year and are expected to be held for more than one year are presented as other non-current financialassets.
(3) Devaluation of financial instrument
On the basis of expected credit losses, the Group performs impairment treatment on financial assets measured atamortized cost and financial assets measured at fair value and whose changes are included in other comprehensiveincome 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, thatis, the present value of all cash shortages. Among them, for the purchase or source of financial assets that havesuffered credit impairment, the Company discounts the financial assets at the actual interest rate adjusted by credit.The Group considers all reasonable and evidenced information, including forward-looking information, based oncredit risk characteristics. When assessing the expected credit losses of receivables, they are classified according tothe specific credit risk characteristics as follows:
1) For receivables and contractual assets and lease receivables (including significant financing components and notincluding significant financing components), the Group measures the provisions for loss based on the amount ofexpected credit losses equivalent to the entire duration. For other receivables, our company measures impairmentlosses based on whether credit risk has significantly increased since initial recognition. For those that have not
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2023 to December 31, 2023（Unless other wise specified, RMB for record in the statement)
significantly increased, the amount equivalent to the expected credit loss for the entire duration of the next 12months is used to measure impairment losses.
①Evaluate expected credit losses based on individual items: notes receivable and financial institution creditreceivables (including accepted letters of credit) in accounts receivable, related party payments (related parties andsignificant impact related parties under the same control); Dividends receivable, interest receivable, reserve funds,investment loans, margin (including warranty), and government subsidies (including dismantling subsidies) in otherreceivables; Contract assets; Accounts receivable containing significant financing components (i.e. long-termreceivables);.
② Evaluating expected credit losses based on customer credit characteristics and aging combinations: In additionto evaluating expected credit losses based on individual items, our company evaluates expected credit losses ofnotes receivable, accounts receivable, and other receivables financial instruments based on customer creditcharacteristics and aging combinations. Customer credit characteristics and aging combination: t.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 future cashflow is measured by a single item, and the cash flow shortage is directly written down the book balance of thefinancial asset.
2) Assess the expected credit losses on a case-by-case basis for other assets to which the financialinstruments are impaired, such as the loan commitments and financial guarantee contracts that are not measured atfair value 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, other non-current financial assets, etc.).
(4) Reorganization basis and measure method for transfer of financial assets
The financial assets meet one of following requirements will be terminated recognition: ① The contractrights of collecting cash flow of the financial assets is terminated; ②The financial assets has already beentransferred, and the Company has transferred almost all risks and remunerations of financial assets ownership tothe transferee; 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 controlling thefinancial assets.
If the enterprise has neither transferred or kept almost all risks and remunerations of financial assetsownership, nor given up controlling the financial assets, then confirm the relevant financial assets according tohow it continues to involve into the transferred financial assets and confirm the relevant liabilities accordingly.The extent 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 betweenthe book value of the transferred financial assets and the sum of consideration received from transfer and
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2023 to December 31, 2023（Unless other wise specified, RMB for record in the statement)
fluctuation 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 current profitsand 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 assets havebeen transferred. If almost all the risks and rewards of ownership of the financial assets have been transferred tothe transferee, the financial assets shall be derecognized; if almost all the risks and rewards of ownership of thefinancial assets are retained, the financial assets shall not be derecognized; if almost all the risks and rewards ofownership of the financial assets are neither transferred nor retained, continue to judge whether the companyretains control over the assets, and conduct accounting treatment according to the principles described in thepreceding 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 while otherfinancial liability shall be reckoned into the initial amount recognized.
① the financial liability measured by fair value and with variation reckoned into current gains/losses
The conditions to be classified as trading financial liabilities and as financial liabilities designated to bemeasured at fair value and whose changes are included in current profit or loss at the initial recognition are consistentwith the conditions to be classified as trading financial assets and as financial assets designated to be measured atfair value and whose changes are included in current profit or loss at the initial recognition. Financial liabilitiesmeasured at fair value and whose changes are included in current profit or loss are subsequently measured at fairvalue, and the gain or loss arising from changes in fair value and the dividends and interest expense related to thesefinancial 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 are
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2023 to December 31, 2023（Unless other wise specified, RMB for record in the statement)
subsequently 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 the higherone between the amount confirmed in accordance with the Accounting Standards for Business Enterprises No. 13— Contingencies after initial recognition and the balance after deducting the accumulated amortization amountdetermined in accordance with the principle of Accounting Standards for Business Enterprises No. 14—Revenuefrom 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 agreement toreplace the existing financial liabilities with new financial liabilities, and if the contract terms of the new financialliabilities are substantially different from the existing financial liabilities, terminated for recognized the existingfinancial liabilities and at the same time recognize the new financial liabilities. If the financial liability is terminatedfor recognized in whole or in part, the difference between the carrying amount of the part that terminated forrecognized and the consideration paid (including the transferred non-cash assets or the assumed new financialliabilities) is included in current profits and losses.
(7) Off-set between the financial assets and liabilities
When the Company has a legal right to offset a recognized financial asset and a financial liability and suchlegal right is currently enforceable, and the Company plans to settle the financial asset on a net basis or to realizethe financial asset and settle the financial liability simultaneously, the financial asset and the financial liability arepresented in the balance sheet at their respective offsetting amounts. In addition, the financial assets and financialliabilities 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 highly effective inhedging, the gains or losses arising from changes in fair value will be determined based on the nature of the hedgingrelationship in accordance with the requirements of the hedge accounting and be included in the period of profit andloss, other changes in fair value of derivatives are included in current profits and losses. For a hybrid instrumentthat includes an embedded derivative, if it is not designated as a financial asset or financial liability measured at fairvalue and whose changes are included in current profit or loss, the embedded derivative does not have a closerelationship with the main contract in terms of economic characteristics and risks, and as with embedded derivatives,
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2023 to December 31, 2023（Unless other wise specified, RMB for record in the statement)
if the tools existing separately conform to the definition of the derivatives, the embedded derivatives are split fromthe hybrid instruments and are treated as separate derivative financial instruments. If it is not possible to measurethe embedded derivative separately at the time of acquisition or subsequent balance sheet date, the whole hybridinstrument is designated as a financial asset or financial liability measured at fair value and whose changes areincluded in current profits and losses.
(9) Equity instrument
The equity instrument is the contract to prove the holding of the surplus stock of the assets with 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 the Company.Transaction costs associated with equity transactions are deducted from equity. The Group's various distributions toequity instrument holders (excluding stock dividends) reduce shareholders' equity.
12. 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 in process,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 bydistribution price difference at the end of the month, the dispatched goods will share the cost differences of inventorywhile in settlement the business income; and low-value consumption goods is carried forward at once when beingapplied 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.The provisionfor inventory depreciation shall be drawn from the difference between the book cost of a single inventory item andits net realizable value, and the provision for inventory depreciation shall be recorded into the current profit andloss.
13. 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 clearly distinguishablecommodities to a customer and has the right to receive payment because one of the commodities has been delivered,but the payment is also dependent on the delivery of the other commodity, the Company shall take the right toreceive 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-mentionedAccounting treatment methods for financial instrument impairment. The Company calculates the expected credit
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2023 to December 31, 2023（Unless other wise specified, RMB for record in the statement)
loss of contract assets on the balance sheet date, if the expected credit loss is greater than the book value of provisionfor impairment of contract assets, the Company shall recognize the difference as an impairment loss, debiting the"asset impairment loss" and crediting the "contract asset impairment provision". On the contrary, the Company shallrecognize the difference as an impairment gain and keep the opposite accounting records.If the Company actually incurs credit losses and determines that the relevant contract assets cannot be recovered,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 the provision for loss that has beenwithdrawn, the "asset impairment loss" is debited based on the difference.
14. 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 timeare recognized as as an asset as the contract performance cost: the cost is directly related to a current or expectedcontract, including direct labor, direct materials, manufacturing expenses (or similar expenses), costs clarified to beborne by the customer, and other costs incurred solely due to the contract; this cost increases the Company's futureresources for fulfilling the contract's performance obligations; this cost is expected to be recovered.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 amortization perioddoes not exceed one year, it shall be included in the current profit and loss when it occurs. Incremental cost refersto the cost (such as sales commission, etc.) that will not incur if the Company doesn’t obtain the contract. TheCompany’s expenses (such as travel expenses incurred regardless of whether the contract is obtained) incurred forobtaining the contract other than the incremental costs expected to be recovered are included in the current profitsand losses when they are incurred, except those are clarified to be borne by the customer.
(2) Amortization of assets related to contract costs
The Company’s assets related to contract costs are amortized on the same basis as the recognition 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 which ishigher than the remaining consideration that the Company is expected to obtain due to the transfer of the commodityrelated to the asset and the estimated cost of transferring the related commodity, the excess shall be provided forimpairment and recognized as an asset impairment loss.
If the depreciation factors of the previous period changed later, causing the aforementioned difference to be
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2023 to December 31, 2023（Unless other wise specified, RMB for record in the statement)
higher than the book value of the asset, the original provision for asset impairment shall be reversed and includedin the current profit and loss, but the book value of the asset after the reversal shall not exceed the book value of theasset on the reversal date under the assumption that no impairment provision is made.
15.Long-term equity investment
Long-term equity investment of the Company is mainly about investment in subsidiary, investment in associatesand investment in joint-ventures.For long-term equity investments acquired through business combination under common control, the initialinvestment cost shall be the acquirer’s share of the carrying amount of net assets of the acquiree as of thecombination date as reflected in the consolidated financial statement of the ultimate controller. If the carryingamount of net assets of the acquiree as of the combination date is negative, the investment cost of long-term equityinvestment shall be zero. For long-term equity investment acquired through business combination not undercommon 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-termequity investment acquired through cash payment, for which the actual payment for the purchase shall be investmentcost; If Long-term equity investments are acquired by issuing equity securities, fair value of issuing equityinvestment shall be investment cost; for Long-term equity investments which are invested by investors, the agreedprice in investment contract or agreement shall be investment cost; and for long-term equity investment which isacquired through debt reorganization and non-monetary assets exchange, regulations of relevant accountingstandards 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, and costof the investment is adjusted when making additional investment or writing off investment; When calculated byequity method, current investment gains and losses represent the proportion of the net gains and losses realized bythe invested unit in current year attributable to or undertaken by the investor. When the Company is believed toenjoy proportion of net gains and losses of invested unit, gains and losses attributable to the Company according toits shareholding ratio is to computer out according to the accounting policy and accounting period of the Company,on the basis of the fair value of various recognizable assets of the invested unit as at the date of obtaining of theinvestment, after offset of gains and losses arising from internal transactions with associates and joint-ventures, andfinally to make confirmation after adjustment of net profit of the invested unit. Confirmation on gains and lossesfrom the long-term equity investment in associates and joint-ventures held by the Company prior to the firstexecution day, could only stand up with the precedent condition that debit balance of equity investment straightlyamortized according to its original remaining term has already been deducted, if the aforementioned balance relatingto the investment do exist.
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2023 to December 31, 2023（Unless other wise specified, RMB for record in the statement)
In case that investor loses joint control or significant influence over investee due to disposal of part equity interestinvestment, the remaining equity interest shall be calculated according to Accounting Standards for BusinessEnterprise No.22-Recognition and Measurement of Financial Instrument. Difference between the fair value of theremaining equity interest as of the date when loss of joint control or significant influence and the carrying value isincluded in current gains and losses. Other comprehensive income recognized in respect of the original equityinterest investment under equity method should be treated according to the same basis which the investee adopts todirectly dispose the relevant assets or liabilities when ceasing adoption of equity method calculation; and alsoswitches to cost method for calculating the long-term equity investments which entitles the Company to haveconduct control over the invested units due to its additional investments; and switches to equity method forcalculating the long-term equity investments which entitles the Company to conduct common control or significantinfluence, while no control over the invested units due to its additional investments, or the long-term equityinvestments which entitles the Company with no control over the invested units any longer while with commoncontrol or significant influence.When disposing long-term equity investment, the balance between it carrying value and effective price for obtainingshall be recorded into current investment income. When disposing long-term equity investment which is calculatedby equity method, the proportion originally recorded in owners’ equity shall be transferred to current investmentincome according to relevant ratio, except for that other movements of owners’ equity excluding net gains and lossesof the invested units shall be recorded into owners’ equity
16. Investment real estate
The investment real estate of the Company includes leased houses and buildings, and is accounted value by its cost.Cost of purchased-in investment real estate consists of payment for purchase, relevant taxes and other expenditurewhich is attributable to the assets directly; while cost of self-built investment real estate is formed with all necessaryexpenditures occurred before construction completion of the assets arriving at the estimated utilization state.Consequent measurement of investment estate shall be measured by cost method. Depreciation is provided withaverage service life method pursuant to the predicted service life and net rate of salvage value. The predicted servicelife 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 from thedate of such turning. In situation of switch, the carrying value before the switch shall be deemed as the credit valueafter the switch.
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2023 to December 31, 2023（Unless other wise specified, RMB for record in the statement)
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 real estate.The amount of income from disposal, transfer, discarding as scrap or damage of investment real estate afterdeducting the asset’ s carrying value and relevant taxation shall be written into current gains and losses.
17.Fixed assets
Fixed assets of the Company are tangible assets that are also held for the production of goods, provision of services,rental or management of operations, have a useful life of more than one year and have a unit value of more than2,000 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 occurs beforethe fixed assets arrive at the state of predicted utilization and which could be directly attributable to the assets; whilecost of self-built fixed asset is formed with all necessary expenditures occurred before construction completion ofthe assets arriving at the estimated utilization state; credit value of the fixed assets injected by investors is determinedbased on the agreed value of investment contracts or agreements, while as for the agreed value of investmentcontracts or agreements which is not fair, it shall take its fair value as credit value; and for fixed assets which areleased in through finance leasing, credit value is the lower of fair value of leased assets and present value ofminimized 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 for the partwhich is replaced, recognization of its carrying value shall cease; for those not meeting requirements forrecognization of fixed assets, they shall be accounted in current gains and losses as long as they occur. When fixedasset is disposed, or no economic benefit would be predicted to obtain through utilization or disposal of the asset,the Company shall terminate recognization of such fixed asset. The amount of income from disposal, transfer,discarding as scrap or damage of fixed asset after deducting the asset’ s carrying value and relevant taxation shallbe 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% |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2023 to December 31, 2023（Unless other wise specified, RMB for record in the statement)
| No. | Category | Depreciation term | Predicted rate of salvage value | Depreciation rate per year |
| 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 salvage value anddepreciation method at each year-end. Any change will be treated as accounting estimation change.
18. Construction in progress
On the day when the construction in progress reaches the expected usable state, it will be carried forward to fixedassets according to the estimated value based on the construction budget, cost or actual construction cost, anddepreciation will be accrued from the next month, and the difference in the original value of fixed assets shall beadjusted after the completion of the final accounting procedures.
19. 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 the intendedusable or saleable state, the capitalization begins when the asset expenditure has occurred, the borrowing expensehave occurred, and the acquisition, construction or production activities necessary to make the asset reach theintended usable or saleable state have begun; when the acquisition, construction or production of assets that meetthe capitalization conditions reaches the intended usable or saleable state, stop the capitalization, the borrowingexpense incurred thereafter are included in the current profit and loss. If an asset that meets the capitalizationconditions is abnormally interrupted during the acquisition, construction or production process, and the interruptionlasts for more than 3 months, the capitalization of borrowing expense shall be suspended until the acquisition,construction or production activities of the asset restart.
Capitalization shall be exercised for interest expense actually occurred from special borrowings in currentperiod after deduction of the interest income arising from unutilized borrowing capital which is saved in banks ordeduction of investment income obtained from temporary investment; For recognization of capitalized amount ofcommon borrowing, it equals to the weighted average of the assets whose accumulated expense or capital disburseis more than common borrowing times capitalization rate of occupied common borrowing. Capitalization rate isdetermined according to weighted average interest rate of common borrowing.
20. Right-of-use assets
Upon becoming a lessee under a lease contract, the Company is entitled to receive substantially all of the economicbenefits, arising from the use of the identified assets during the period of use and is entitled to recognized the right-of-use assets at the sum of the present value of the lease liability, prepaid rent and initial direct costs, and torecognized the depreciation and interest expenses respectively, when the use of the identified assets dominatesduring that period of use.
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2023 to December 31, 2023（Unless other wise specified, RMB for record in the statement)
When the Company becomes the lessee of a lease contract, for short-term leases of less than one year without apurchase option and leases with a value of less than 40000 yuan (excluding sublease or expected sublease assets),the Company elects to follow simplified treatment and record the related assets at cost or current gain/loss on astraight-line basis over the lease period.
21. Intangible assets
(1) Valuation method, service life and impairment test
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 at actualcost based on the price actually paid and related other expenditure; the actual cost of an intangible asset invested byan investor is determined at the value agreed in the investment contract or agreement, except where the agreed valuein the contract or agreement is not fair, in which case the actual cost is determined at fair value.The Company analyzes and judges the service life of intangible assets when acquiring them. Intangible assets withdefinite service life, such as land use rights, are amortized by the straight-line method during the service life fromthe time when the intangible assets are available for use until they are no longer recognized as intangible assets.Other intangible assets shall be amortized according to the service life stipulated in the contract or law. Intangibleassets with uncertain service life shall not be amortized. Intangible assets developed by the Company shall begenerally amortized on an average of 3-5 years according to the benefit period of the results of the project recognizedin advance.The service life and amortization method of intangible assets with limited service life shall be reviewed at the endof the year. If the estimated service life and amortization method of intangible assets are different from thosepreviously estimated, the amortization period and amortization method shall be changed. The service life ofintangible assets with uncertain service life shall be rechecked. If there is evidence that their service life is limited,estimate their service life and treat them as intangible assets with limited service life. If there is any change afterthe recheck, it will be regarded as the change of accounting estimate.
(2) Collection scope of R&D expenditure and related accounting treatment methodsThe Company's R&D expenditure is directly related to the Company's R&D activities, including R&D staff salaries,direct input expenses, depreciation expenses and other expenses.The R&D expenditure of the Company is divided into research stage expenditure and development stageexpenditure according to its nature and whether there is great uncertainty in the final formation of intangible assetsfrom R&D activities. Research stage expenditure is included in the current profits and losses when it occurs;Development stage expenditure is recognized as intangible assets if it meets the following conditions at the sametime: (1) It is technically feasible to complete the intangible assets so that they can be used or sold; (2) It has theintention to complete the intangible assets and use or sell them; (3) The products produced by using the intangibleassets exist in the market or the intangible assets themselves exist in the market; (4) It has sufficient technical,financial and other resources to support the development of the intangible assets, and has the ability to use or sell
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2023 to December 31, 2023（Unless other wise specified, RMB for record in the statement)
the intangible assets; (5) Expenditure attributable to the development stage of the intangible assets can be reliablymeasured.-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 which hasbeen starting capitalization is listed in balance sheet as development expenditure, and transferred to intangible assetssince the project reaches at predicted utilization state.
22. Impairment of long-term assets
As at each balance sheet date, the Company has inspection on fixed assets, construction in process and intangibleassets with limited service life. When the following indications appear, assets may be impaired, and the Companywould have impairment test. As for goodwill and intangible assets which have uncertain service life, no matter thereis impairment or not, impairment test shall be conducted at the end of every year. If it is hard to make test onrecoverable amount of single asset, test is expected to make on the basis of the assets group or assets group portfoliowhere such asset belongs to.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 a greatdrop 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 greatly lower(or higher) than the predicted amount;
(7) Other indications showing possible impairment of assets
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, it couldn’tbe switched back in later accounting periods. Recoverable amount of assets refers to the higher of fair value ofassets net disposal expense and present value of predicted cash flow of the asset.
23. Contract liability
Contract liabilities reflect the Company's obligation to transfer goods to customers for consideration received orreceivable from customers. Before the Company transfers the goods to the customer, if the customer has paid the
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2023 to December 31, 2023（Unless other wise specified, RMB for record in the statement)
contract consideration or the Company has obtained the right to unconditionally receive the contract consideration,the contract liability is recognized based on the received or receivable amount at the earlier time point of the actualpayment by the customer and the payment due.
24. Goodwill
Goodwill represents balance between equity investment cost or business combination cost under no commoncontrol exceeding the attributable part or fair value of recognizable net assets of party invested or purchased(obtained through business combination) as of acquisition day or purchase day.
Goodwill relating to subsidiaries is separately listed in consolidated financial statement. And goodwill relating toassociates and joint-ventures is included in carrying value of long-term equity investment.
25.Long-term deferred expenses
The company's long-term deferred expenses refer to the expenses that have been paid, but should be borne by thecurrent period and future periods with an amortization period of more than one year (excluding one year), and theseexpenses are amortized evenly during the benefit period. If the long-term deferred expense item cannot benefit thefuture accounting period, all the amortized value of the item that has not been amortized will be transferred into thecurrent profit and loss.
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-term employeewelfare.Short-term remuneration includes: staff salary, bonus, allowances and subsidies, staff benefits, social insuranceslike medical insurance, work-related injury insurance and maternity insurance, housing fund, labor union funds andstaff education funds, short-term paid absence of duty, short-term profit sharing scheme, and non-monetary benefitsas well as other short-term remuneration. During the accounting period when staff provides services, the short-termremuneration actually occurred is recognized as liabilities and shall be included in current gains and losses or relatedasset 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 employees inrespect of retirement benefits, or the rules or regulations established by the Company for providing retirementbenefits to employees. In particular, defined contribution plan means a retirement benefit plan, pursuant to which,the Company makes fixed contribution to independent fund, upon which, and it is not obliged to make further
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2023 to December 31, 2023（Unless other wise specified, RMB for record in the statement)
payment. Defined benefit plan refers to retirement benefit scheme other than defined contribution plan.
The early retirement policy for staff and workers of the Company is the compensation for encouraging staffand workers to accept the reduction voluntarily. The employees make applications voluntarily, the two parties signthe compensation agreement after approved by the Company and calculate the compensation amount according tothe compensation standard passed by the staff representative conference, and the Company confirms it as dismisswelfare and reckons it in current profits and losses. As the Company promises to adjust the treatment for earlyretiring staff and workers with the increase of social basic cost of living allowances, the discount elements will notbe considered for calculating the dismiss welfare.
27.Lease liability
Upon becoming a lessee under a lease contract, the Company recognizes a lease liability for the leased-in asset atthe present value of the unpaid lease payments, net of lease incentives (except for short-term leases and leases oflow-value assets for which simplified treatment is elected), when it is entitled to receive substantially all of theeconomic benefits arising from the use of the identified asset during the period of use and is entitled to dominatethe use of the identified asset during that period of use.
28.Accrual liability
If the business in connection with such contingencies as a security involving a foreign party, commercial acceptancebill discount, pending litigation or arbitration, product quality assurance, etc. meets all of the following conditions,the Company will confirm the aforesaid as liabilities: the obligation is an existing obligation of the Company;performance of the obligation is likely to cause economic benefits to flow out of the enterprise; the amount of theobligation is reliably measurable.
29. Special reserve
The work safety expense extracted according to the regulations will be included in the cost of related products orthe current profit and loss, and also included in the special reserve; When used, it will be treated separately accordingto whether fixed assets are formed or not: if it is an expense expenditure, the special reserve will be directly offset;If the fixed assets are formed, the expenses incurred shall be collected, and the fixed assets shall be confirmed whenthe predetermined usable state is reached, and at the same time, the equivalent special reserve shall be offset andthe equivalent accumulated depreciation shall be confirmed.
30. 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 recognized when thecustomer obtains control of the relevant goods or services.
If the contract contains two or more performance obligations, the Company will allocate the transaction price toeach individual performance obligation according to the relative proportion of the stand-alone selling price of the
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2023 to December 31, 2023（Unless other wise specified, RMB for record in the statement)
goods or services promised by each individual performance obligation on the date of the contract. The revenue ismeasured 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 to thetransfer of goods or services to customers, excluding payments on behalf of third parties. The transaction priceconfirmed by the Company does not exceed the amount at which the cumulatively recognized revenue will mostlikely not to undergo a significant switch back when the relevant uncertainty is eliminated. The money expected tobe returned to the customer will be regarded as a return liability and not included in the transaction price. If there isa significant financing component in the contract, the Company shall determine the transaction price based on theamount payable on the assumption that the customer pays in cash when obtaining the control of the goods or services.The difference between the transaction price and the contract consideration shall be amortized by the effectiveinterest method during the contract period. On the starting date of the contract, if the Company expects that theinterval between the customer's acquisition of control of the goods or services and the customer's payment of theprice doesn’t exceed one year, the significant financing components in the contract shall be ruled out.
When meeting one of the following conditions, the Company is to perform its performance obligations within acertain 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 the sametime as the Company's performance;
2) Customers can control the products under construction during the performance of the Company;
3) The goods produced by the Company during the performance of the contract have irreplaceable uses, and theCompany has the right to collect payment for the accumulated performance part of the contract during the entirecontract 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 the costincurred by the Company is expected to be compensated, the revenue shall be recognized according to the amountof 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 has obtainedcontrol 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;
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2023 to December 31, 2023（Unless other wise specified, RMB for record in the statement)
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.
31. Government subsidy
Government subsidy of the Company include project grants, financial subsidies and job stabilization subsidies. Ofwhich, asset-related government subsidy are government subsidy acquired by the Company for the acquisition orother formation of long-term assets; government subsidy related to revenue are government subsidy other than thoserelated to assets. If the government document does not clearly specify the subsidy object, the Company will judgeaccording to the above-mentioned distinguishing principle. If it is difficult to distinguish, it will be overall classifiedas 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 year thatit can meet the relevant conditions stipulated by the financial support policy and is expected to receive financialsupport funds, they are measured according to the amount receivable. If the government subsidy is a non-monetaryasset, it shall be measured at its fair value, when the fair value cannot be obtained reliably, it shall be measured atits nominal amount (1 yuan).
Government subsidies related to assets are recognized as deferred income. Asset-related government subsidies thatare recognized as deferred income are included in the current profit and loss in installments according to the averagelife 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.
32. 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 recognized forthe carry forward of unused deductible losses that it is probable that future taxable profits will be available againstwhich the deductible losses can be utilized. For temporary difference arising from initial recognition of goodwill,no corresponding deferred income tax liabilities will be recognized. For temporary difference arising from initialrecognition of assets and liabilities occurred in the transaction related to non-business combination which neitheraffect accounting profit nor taxable income (or deductible losses), no corresponding deferred income tax assets anddeferred income tax liabilities will be recognized. As of the balance sheet date, deferred income tax assets anddeferred income tax liabilities are measured at the effective tax rate applicable to the period when recovery of assetsor settlement of liabilities occur.The Company recognizes deferred income tax assets to the extent of future taxable income tax which is likely to beobtained to offset deductible temporary difference, deductible losses and tax credits. For the confirmed deferred
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2023 to December 31, 2023（Unless other wise specified, RMB for record in the statement)
income tax assets.
33.Lease
When the Company becomes the lessee of the lease contract, has the right to obtain almost all the economic benefitsarising from the use of the identified assets during the period of use, and has the right to lead the use of the identifiedassets during the period of use, the present value of unpaid lease payments of the lease assets after deducting leaseincentives (except for short-term leases and leases of low-value assets for which simplified treatment is selected) isrecognized as a lease liability, and a right-of-use asset is recognized based on the sum of the present value of thelease liability, prepaid rent, and initial direct costs, and depreciation and interest expenses are recognized separately.When the Company becomes the lessee of a lease contract, for short-term leases of less than one year without apurchase option and leases with a value of less than 40,000 yuan (excluding sublease or expected sublease assets),the Company elects to follow simplified treatment and record the related assets at cost or current gain/loss on astraight-line basis over the lease period.When the Company becomes the lessor of a lease contract, it classifies the lease into an operating lease and a financelease at the lease commencement date. A finance lease is a lease that transfers substantially all the risks and rewardsassociated with the ownership of an asset. Operating leases are leases other than finance leases. Rentals underoperating leases are recognized as income on a straight-line basis over the lease term. Finance leases are recordedat the net lease investment value of the finance lease receivable, which is the sum of the unguaranteed residual valueand the present value of the lease receipts not yet received as of the commencement 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 in thecontract 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 to berecognized separately if it meets the recognition conditions of a single lease; if it does not meet the recognition of asingle leasing business, or there is a major event or change within the controllable range of the lessee, re-evaluateand measure the present value of lease liabilities, and adjust the book value of the right-of-use asset accordingly. Ifthe book value of the right-of-use asset has been reduced to zero, but the lease liability still needs to be furtherreduced, the lessee shall include the remaining amount in the corresponding expenses for the current period.
When the Company becomes the lessor of a lease contract, the lease is divided into operating lease and finance leaseon the start date of lease. A finance lease is a lease that transfers substantially all the risks and rewards associatedwith ownership of an asset. An operating lease refers to a lease other than finance leases. The rent of an operatinglease is recognized as income on a straight-line basis during the lease term. For an finance lease, the net investmentin the lease is regarded as the entry value of the finance lease receivables, and the net investment in the lease is thesum of the unguaranteed residual value and the present value of the lease receipts that have not been received onthe start date of the lease term.
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2023 to December 31, 2023（Unless other wise specified, RMB for record in the statement)
34. 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 and transactionsdirectly included in the owners’ equity shall be included in the owners’ equity; and the deferred income tax derivedfrom business combination shall be included in the carrying amount of goodwill, except for that above, the incometax 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 tothe tax lawson the events and transactions incurred in the current period. The deferred income tax refersto the differencebetween the carrying amount and the deferred tax assets and deferred tax liabilities at Current Year-end recognizedin the method of debit in the balance sheet.
35. 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 price amongthe segments will recognize based on the market price, common costs will allocated by income proportion betweensegments except for the parts that without reasonable allocation.
36. 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 the managementin respect of the key assumption involved in the estimation and judgment of uncertainties. Effect resulting fromchange 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 directly used forsale, such as the goods in stock, the goods sent out, and the materials for sale, and the low-consumption goods, shallbe determined by the amount of the estimated selling price of the inventory minus the estimated selling expensesand relevant taxes. The net realizable value of the material inventory held for production is determined by theamount of the estimated selling price of the finished product produced minus the estimated cost to be incurred atthe time of completion, the estimated selling expenses and relevant taxes.
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2023 to December 31, 2023（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 recoverable amountof relevant assets and assets group shall be the present value of the projected future cash flow which shall becalculated with accounting estimation.
If the management amends the gross profit margin and discount rate adopted in calculation of future cash flow ofassets and assets group and the amended gross profit margin is lower than the currently adopted one or the amendeddiscount rate is higher than the currently adopted one, the Company needs to increase provision of impairmentprovision. If the actual gross profit margin is higher (or the discount rate is lower) than the estimation of management,the Company can not transfer back the long term assets impairment provision provided already.
(3) Accounting estimation on realization of deferred income tax assets
Estimation on deferred income tax assets needs estimation on the taxable income and applicable tax rate for eachfuture year. Realization of deferred income tax assets depends on whether a company is able to obtain sufficienttaxable income in future. Change of future tax rate and switch back of temporary difference could affect the balanceof income tax expense (gains) and deferred income tax. Change of the aforesaid estimation may result in materialadjustment 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 value rateof fixed assets and intangible assets. The projected usable life and residual value rate are determined by themanagement based on the historical experiences of similar assets by reference to the estimation generally used bythe same industry with consideration on projected technical upgrade. If material change occurs to previousestimation, the Company shall accordingly adjust the depreciation expenses and amortization expenses for futureperiod.
37. 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 relevant accountingrules:
(1)Other comprehensive income items that can not be reclassified into gains and losses in future accounting periods,mainly including changes arising from re-measurement of net liabilities or net assets under defined benefit plan andinterest in investee’s other comprehensive income which are measured under equity method and which can not bereclassified into gains and losses in future accounting periods;
(2) Other comprehensive income items that will be reclassified into gains and losses in future accounting periods
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2023 to December 31, 2023（Unless other wise specified, RMB for record in the statement)
upon satisfaction of required conditions, mainly includes the share of other comprehensive income that isreclassified into profit and loss when the investee’s subsequent accounting periods are accounted for in accordancewith the equity method and meet the specified conditions, the fair value changes occurred by the debt investmentthat is measured at fair value and whose changes are included in other comprehensive income, the differencebetween the original book value included in other comprehensive income and the fair value when a financial assetmeasured at amortized cost is reclassified as a financial asset measured at fair value and its changes are included inother comprehensive income, the loss provisions for financial assets measured at fair value and whose changes areincluded in other comprehensive income, the gains or losses generated from cash flow hedging instruments are partof effective hedging, and the differences in conversion of foreign currency financial statements.
38. Change of significant accounting policies and accounting estimates
(1) Change of significant accounting policy
| Contents and reasons of changes in accounting policies | Remark |
| On November 30, 2022, the Ministry of Finance issued the Interpretation No.16 of Accounting Standards for Business Enterprises, which stipulated that "Deferred income tax related to assets and liabilities arising from a single transaction is not applicable to the accounting treatment of initial recognition exemption". | Relevant accounting policy changes have been approved at the 32nd meeting of the 10th Board of Directors of the Company |
The names and amounts of the report items that are significantly affected are as follows:
| Affected items | Consolidated statement | Parent company statement | ||||
| 2022-12-31 (before change) | Adjustment amount | 2023-1-1 (after change) | 2022-12-31 (before change) | Adjustment amount | 2023-1-1 (after change) | |
| Deferred income tax assets | 156,630,537.43 | 4,935,157.87 | 161,565,695.30 | 125,037,558.04 | 2,683,181.79 | 127,720,739.83 |
| Deferred income tax liabilities | 12,750,747.30 | 4,758,755.78 | 17,509,503.08 | 8,642,999.01 | 2,510,986.84 | 11,153,985.85 |
| Surplus public | 441,201,471.98 | 17,219.50 | 441,218,691.48 | 440,983,306.30 | 17,219.50 | 441,000,525.80 |
| Undistributed profit | 909,082,037.66 | 167,328.13 | 909,249,365.79 | 1,064,136,866.98 | 154,975.45 | 1,064,291,842.43 |
| Minority equity | 370,748,395.26 | -8,145.54 | 370,740,249.72 | |||
(2) Change of significant accounting estimates: N/A
IV. 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 | Turnover tax | 5% or7% |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2023 to December 31, 2023（Unless other wise specified, RMB for record in the statement)
| Tax (expenses) | Tax (expenses) base | Tax (expenses) rate |
| construction tax | ||
| Education surcharge | Turnover tax | 3% |
| Local education surcharge | Turnover tax | 2% |
| Corporate income tax | Taxable income | 15%,20%,22%,29%,30% |
| 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 tto 15yuan/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. | 20% |
| 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 | 15% |
| Hefei Changhong Meiling Life appliance Co., Ltd. | 15% |
| CH-Meiling International (Philippines) Inc. | 30% |
| Changhong Ruba Trading Company (Private) Limited | 29% |
| CHANGHONG MEILING ELECTRIC INDONESIA,PT | 22% |
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 of Finance,and Anhui Provincial Taxation Bureau of the State Administration of Taxation, and enjoys 15% rate for the incometax for State Hi-Tech Enterprise for three years term. On November 30, 2023, the Company obtained the certificateof high-tech enterprise with the number GR2020340006385 through the identification of high-tech enterprises, and
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2023 to December 31, 2023（Unless other wise specified, RMB for record in the statement)
continued to enjoy the income tax rate of 15% of national high-tech enterprises, valid for three years.
(2) On August 17, 2020, the subsidiary Zhongke Meiling Cryogenic Technology Co., Ltd. obtained the high-techenterprise certificate numbered GR202034000072 approved by the Anhui Provincial Department of Science andTechnology, Anhui Provincial Department of Finance, and Anhui Provincial Taxation Bureau of the StateAdministration of Taxation, and enjoys 15% rate for the income tax for State Hi-Tech Enterprise for three yearsterm. On October 16, 2023, it obtained the certificate of high-tech enterprise with the number GR202334003036approved by the Department of Science and Technology of Anhui Province, Anhui Provincial Department ofFinance and the Anhui Provincial Taxation Service, State Taxation Administration, and continued to enjoy theenterprise income tax rate of 15% of the national high-tech enterprises, valid for three years.
(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 Province in2020'' published by the Office of the National High-tech Enterprise Certification Management Leading Group, andcontinues to enjoy 15% rate for the income tax for State Hi-Tech Enterprise for three years term. Enjoy a 15%income tax rate for national high-tech enterprises, valid for three years. On December 28, 2023, we obtained thehigh-tech enterprise certificate with certificate number GR202344012950 approved by the Guangdong ProvincialDepartment of Science and Technology, Guangdong Provincial Department of Finance, and Guangdong ProvincialTaxation Bureau of the State Administration of Taxation. We will continue to enjoy a 15% corporate income tax ratefor national high-tech enterprises, with a validity period of three years.
(4) 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 for theWestern Development, and the corporate income tax is levied at a reduced tax rate of 15%, valid until December31, 2030.
(5) The subsidiary Guangdong Changhong Meiling Ridian Technology Co., Ltd. has passed the qualificationof high-tech enterprise certification on 22 December 2022, and enjoys 15% rate for the income tax for State Hi-Tech Enterprise for three years term.
(6) The subsidiary Hong Yuan Ground Energy Heat Pump Tech. (Zhongshan) Co., Ltd. has passed thequalification of high-tech enterprise certification on 22 December 2022, and enjoys 15% rate for the income tax forState Hi-Tech Enterprise for three years term.
(7) The subsidiary Hefei Meiling Nonferrous Metal Products Co., Ltd. has passed the qualification of high-techenterprise certification on 18 September 2021, and enjoys 15% rate for the income tax for State Hi-Tech Enterprisefor three years term.
(8) The subsidiary Jiangxi Meiling Electric Appliance Co., Ltd. has passed the qualification of high-techenterprise certification on 4 November 2022, and enjoys 15% rate for the income tax for State Hi-Tech Enterprisefor three years term.
(9) The subsidiary Sichuan Changhong Air-conditioner Co., Ltd., has passed the qualification of high-tech
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2023 to December 31, 2023（Unless other wise specified, RMB for record in the statement)
enterprise certification on 29 November 2022, and enjoys 15% income tax rate for national payroll technologyenterprise for three years term.
(10) 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 the relevantstandards for small and medium-sized enterprises with meager profits in the “Notice on matters related to theimplementation of preferential income tax policy to support the development of small & medium-size enterpriseand individual entrepreneurs” (Guoshui [2021] No. 8) and “Notice on Further Implementation of PreferentialIncome Tax Policies for Small & Micro Enterprises (No.: 6 of 2023)” of the Ministry of Finance and the StateAdministration of Taxation, and temporarily implements below policies: the part of annual taxable income that doesnot exceed one million yuan is included in taxable income by 25% after a reduction, and corporate income tax ispaid at a tax rate of 20%, valid until December 31, 2024; while the part of annual taxable income exceeds onemillion yuan but not exceeding three million yuan is included in taxable income by 25% after a reduction, andcorporate income tax is paid at a tax rate of 20%, which is valid until December 31, 2024.
(11) The subsidiary Hebei Meiling Wulian Technology Co., Ltd. has passed the qualification of high-techenterprise certification on 18 September 2021, and enjoys 15% income tax rate for national payroll technologyeenterprises for three years term.
(12) The subsidiary Hebei Changhong Meiling Life Appliance Co., Ltd. has passed the qualification of high-tech enterprise certification on 18 November 2022, and enjoys 15% income tax rate for national payroll technologyeenterprise for three years term.V. Notes to the major items in the consolidated financial statementsWith respect to the financial statements figures disclosed below, unless otherwise specified, “year-beginning”refers to Jan. 1, 2023; “year-end” refers to Dec. 31, 2023; “Current Year” refers to Jan. 1 to Dec. 31, 2023; “thelast year” refers to Jan. 1 to Dec. 31, 2022; the currency is RMB.
1. Monetary fund
| Item | Ending balance | Opening balance |
| Cash | 12,727.56 | 21,243.42 |
| Bank deposit | 4,160,096,314.60 | 3,141,070,623.60 |
| Other monetary fund | 425,569,359.11 | 720,140,385.24 |
| Interest receivable on deposit | 4,255,007,124.44 | 2,978,189,526.87 |
| Total | 8,840,685,525.71 | 6,839,421,779.13 |
| Total amount deposited in overseas | 25,902,580.15 | 9,295,065.32 |
2. Tradable financial assets
| Item | Balance at year-end | Balance at year-begin |
| Financial assets measured at fair value and whose changes are included in current gains/losses | 39,236,447.63 | 57,660,588.67 |
| Including: Derivative financial assets | 39,236,447.63 | 57,660,588.67 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2023 to December 31, 2023（Unless other wise specified, RMB for record in the statement)
Tradable financial assets refers to the RMB forward exchange fund in Current Year
3. Note receivable
(1) Category of note receivable
| Item | Balance at year-end | Balance at year-begin |
| Bank acceptance | 228,500.00 | |
| Trade acceptance | 38,674.50 | |
| Total | 267,174.50 |
(2) By accrual of bad debt provision
| Category | Balance at year-end | ||||
| Book balance | Bad debt provision | Book value | |||
| Amount | Ratio (%) | Amount | Ratio (%) | ||
| With bad debt provision accrual on single item | 267,174.50 | 100.00 | 267,174.50 | ||
| Including: Bank acceptance | 228,500.00 | 85.52 | 228,500.00 | ||
| Trade acceptance | 38,674.50 | 14.48 | 38,674.50 | ||
| Total | 267,174.50 | 100.00 | 267,174.50 | ||
1) Note receivable withdrawal bad debt provision on single item
| Name | Balance at year-begin | Balance at year-end | ||||
| Book balance | Bad debt provision | Book balance | Bad debt provision | Provision ratio (%) | Provision reason | |
| Bank acceptance | 228,500.00 | Minimal risk, holding maturity acceptance | ||||
| Trade acceptance | 38,674.50 | Minimal risk, holding maturity acceptance | ||||
| Total | 267,174.50 | — | — | |||
(2) Bad debt provision of note receivable that has been accrued, withdrawn, and reversed this yearN/A
(3) Notes receivable that have been pledged at the end of the year: N/A
(4) Notes receivable that have been endorsed or discounted at the end of the year and have not yet matured on thebalance sheet date
| Item | Amount to be derecognized at the end of the year | Amount not derecognized at the end of the year |
| Trade acceptance | 38,674.50 | |
| Total | 38,674.50 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2023 to December 31, 2023（Unless other wise specified, RMB for record in the statement)
(5) Notes receivable actually written off this year: N/A
4. Account receivable
(1) Category of account receivable by aging
| Account age | Balance at year-end | Balance at year-begin |
| Within 1 year（Including 1 year） | 1,629,505,172.78 | 1,253,020,874.80 |
| Including： | ||
| Within 3 months (3 months included) | 1,441,654,287.27 | 839,113,924.70 |
| More than 3 months and less than 6 months (6 months included) | 140,150,202.58 | 319,861,920.01 |
| Over 6 months and within one year (One year included) | 47,700,682.93 | 94,045,030.09 |
| Over one year - within 2 years (2 years included) | 131,340,766.08 | 241,992,516.95 |
| Over 2 years - within 3 years (3 years included) | 154,167,214.15 | 32,346,833.25 |
| Over 3 years | 53,619,387.00 | 38,203,610.15 |
| Total | 1,968,632,540.01 | 1,565,563,835.15 |
(2) Category of account receivable by bad debt accrual
| Category | Amount at year-end | ||||
| Book balance | Bad debt provision | Book value | |||
| Amount | Ratio (%) | Amount | Ratio (%) | ||
| Account receivable that withdrawal bad debt provision by single item | 682,942,277.48 | 34.69 | 195,578,324.84 | 28.64 | 487,363,952.64 |
| Including: current payment with related party | 545,656,729.90 | 27.72 | 154,606,151.98 | 28.33 | 391,050,577.92 |
| Account receivable with letter of credit | 83,951,301.01 | 4.26 | 83,951,301.01 | ||
| Account receivable with single minor amount but withdrawal single item bad debt provision | 53,334,246.57 | 2.71 | 40,972,172.86 | 76.82 | 12,362,073.71 |
| Account receivable withdrawal bad debt provision by portfolio | 1,285,690,262.53 | 65.31 | 139,347,326.11 | 10.84 | 1,146,342,936.42 |
| Including: account receivable of engineering customers | 212,621,463.45 | 10.80 | 44,910,916.50 | 21.12 | 167,710,546.95 |
| Receivables other than engineering customers | 1,073,068,799.08 | 54.51 | 94,436,409.61 | 8.80 | 978,632,389.47 |
| Total | 1,968,632,540.01 | 100.00 | 334,925,650.95 | 17.01 | 1,633,706,889.06 |
Continued
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2023 to December 31, 2023（Unless other wise specified, RMB for record in the statement)
| Category | Amount at year-begin | ||||
| Book balance | Bad debt provision | Book value | |||
| Amount | Ratio (%) | Amount | Ratio (%) | ||
| Account receivable that withdrawal bad debt provision by single item | 781,312,227.18 | 49.90 | 140,035,432.60 | 17.92 | 641,276,794.58 |
| Including: current payment with related party | 651,212,122.14 | 41.60 | 111,191,911.65 | 17.07 | 540,020,210.49 |
| Account receivable with letter of credit | 70,940,571.45 | 4.53 | 70,940,571.45 | ||
| Account receivable with single minor amount but withdrawal single item bad debt provision | 59,159,533.59 | 3.77 | 28,843,520.95 | 48.76 | 30,316,012.64 |
| Account receivable withdrawal bad debt provision by portfolio | 784,251,607.97 | 50.10 | 118,656,456.70 | 15.13 | 665,595,151.27 |
| Including: account receivable of engineering customers | 201,410,848.70 | 12.87 | 24,773,169.64 | 12.30 | 176,637,679.06 |
| Receivables other than engineering customers | 582,840,759.27 | 37.23 | 93,883,287.06 | 16.11 | 488,957,472.21 |
| Total | 1,565,563,835.15 | 100.00 | 258,691,889.30 | 16.52 | 1,306,871,945.85 |
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 singlereceivables, and withdrawal bad debt provision by combination shows no risk characteristic of the receivables, 96clients involved.
2) Account receivable withdrawal bad debt provision by portfolio
A.Account receivable of engineering customers
| Account age | Balance at year-end | ||
| Book balance | Bad debt provision | Provision ratio (%) | |
| Within 3 months (3 months included) | 33,502,386.39 | ||
| More than 3 months and less than 6 months (6 months included) | 29,638,184.67 | ||
| Over 6 months and within one year (One year included) | 29,724,507.75 | ||
| Over one year - within 2 years (2 years included) | 71,526,399.70 | 14,305,279.94 | 20.00 |
| Over 2 years - within 3 years (3 years included) | 35,248,696.77 | 17,624,348.39 | 50.00 |
| Over 3 years | 12,981,288.17 | 12,981,288.17 | 100.00 |
| Total | 212,621,463.45 | 44,910,916.50 | — |
Continued
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2023 to December 31, 2023（Unless other wise specified, RMB for record in the statement)
| Account age | Balance at year-begin | ||
| Book balance | Bad debt provision | Provision ratio (%) | |
| Within 3 months (3 months included) | 46,445,327.67 | ||
| More than 3 months and less than 6 months (6 months included) | 18,955,344.03 | ||
| Over 6 months and within one year (One year included) | 42,492,137.30 | ||
| Over one year - within 2 years (2 years included) | 73,286,167.38 | 14,657,233.48 | 20.00 |
| Over 2 years - within 3 years (3 years included) | 20,231,872.32 | 10,115,936.16 | 50.00 |
| Over 3 years | 100.00 | ||
| Total | 201,410,848.70 | 24,773,169.64 | |
B.Receivables other than engineering customers
| Account age | Balance at year-end | ||
| Book balance | Bad debt provision | Provision ratio (%) | |
| Within 3 months (3 months included) | 923,822,329.93 | 9,238,223.30 | 1.00 |
| More than 3 months and less than 6 months (6 months included) | 41,778,451.31 | 4,177,845.13 | 10.00 |
| Over 6 months and within one year (One year included) | 9,463,055.00 | 1,892,611.00 | 20.00 |
| Over one year - within 2 years (2 years included) | 2,723,777.86 | 1,361,888.93 | 50.00 |
| Over 2 years - within 3 years (3 years included) | 87,576,718.61 | 70,061,374.88 | 80.00 |
| Over 3 years | 7,704,466.37 | 7,704,466.37 | 100.00 |
| Total | 1,073,068,799.08 | 94,436,409.61 | — |
Continued
| Account age | Balance at year-begin | ||
| Book balance | Bad debt provision | Provision ratio (%) | |
| Within 3 months (3 months included) | 388,904,609.29 | 3,889,046.09 | 1.00 |
| More than 3 months and less than 6 months (6 months included) | 27,600,654.77 | 2,760,065.48 | 10.00 |
| Over 6 months and within one year (One year included) | 11,098,413.19 | 2,219,682.64 | 20.00 |
| Over one year - within 2 years (2 years included) | 136,495,488.03 | 68,247,744.02 | 50.00 |
| Over 2 years - within 3 years (3 years included) | 9,874,225.80 | 7,899,380.64 | 80.00 |
| Over 3 years | 8,867,368.19 | 8,867,368.19 | 100.00 |
| Total | 582,840,759.27 | 93,883,287.06 | — |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2023 to December 31, 2023（Unless other wise specified, RMB for record in the statement)
(3) Bad debt provision of accounts receivable this year
| Category | Balance at year-begin | Changes this year | Balance at year-end | |||
| Accrual | Withdrawal or reversal | Resale or write-off | Other decreases | |||
| Bad debt provision | 258,691,889.30 | 86,947,228.49 | 5,404,101.29 | 3,092,614.56 | 2,216,750.99 | 334,925,650.95 |
| Total | 258,691,889.30 | 86,947,228.49 | 5,404,101.29 | 3,092,614.56 | 2,216,750.99 | 334,925,650.95 |
(4) Account receivable actually written-off in Current Year
| Item | Written-off amount |
| Account receivable actually written-off | 3,092,614.56 |
(5) Top five receivables collected by arrears party amounting to 572,545,992.76 yuan in total, accounted for
28.88% of the receivables of current year-end, the bad debt provision accrual correspondingly amounting to181,259,573.75 yuan at year-end balance.
5. Receivables financing
（1）Classification and listing of receivable financing
| Item | Balance at year-end | Balance at year-begin |
| Bank acceptance | 1,641,858,740.34 | 1,446,358,719.88 |
| Total | 1,641,858,740.34 | 1,446,358,719.88 |
(2)Receivable financing is classified and listed by bad debt accrual method
| Category | Amount at year-end | ||||
| Book balance | Bad debt provision | Book value | |||
| Amount | Ratio (%) | Amount | Ratio (%) | ||
| Withdrawal bad debt provision by single item | 1,641,858,740.34 | 100.00 | 1,641,858,740.34 | ||
| Including：Bank acceptance | 1,641,858,740.34 | 100.00 | 1,641,858,740.34 | ||
| Total | 1,641,858,740.34 | 100.00 | 1,641,858,740.34 | ||
Continued
| Category | Balance at year-begin | ||||
| Book balance | Bad debt provision | Book value | |||
| Amount | Ratio (%) | Amount | Ratio (%) | ||
| Withdrawal bad debt provision by single item | 1,446,358,719.88 | 100.00 | 1,446,358,719.88 | ||
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2023 to December 31, 2023（Unless other wise specified, RMB for record in the statement)
| Category | Balance at year-begin | ||||
| Book balance | Bad debt provision | Book value | |||
| Amount | Ratio (%) | Amount | Ratio (%) | ||
| Including：Bank acceptance | 1,446,358,719.88 | 100.00 | 1,446,358,719.88 | ||
| Total | 1,446,358,719.88 | 100.00 | 1,446,358,719.88 | ||
（3）There is no bad debt provision accrued, recovered or reversed this year;
(4)Financing of receivables that have been pledged at the end of the year
| Item | Year-end pledged amount |
| Bank acceptance | 997,291,535.93 |
Note: with purpose of improving the note utilization, the Company draw up bank acceptance by pledge parts ofthe outstanding notes receivable to the bank. For details of the pledge of bills receivable, see Note V. 24. Assetswith restricted ownership or use rights.
(5) Notes endorsement or discount and undue on balance sheet date listed in receivables financing at the end ofthe year
| Item | Amount derecognition at year-end | Amount without derecognition at year-end |
| Bank acceptance | 873,061,985.45 | |
| Total | 873,061,985.45 |
6. Accounts paid in advance
(1) Age of account paid in advance
| Item | Balance at year-end | Balance at year-begin | ||
| Amount | Ratio (%) | Amount | Ratio (%) | |
| Within one year | 43,288,908.76 | 94.64 | 39,700,777.69 | 86.57 |
| 1-2 years | 811,122.73 | 1.77 | 5,042,628.29 | 11.00 |
| 2-3 years | 707,919.39 | 1.55 | 1,116,085.57 | 2.43 |
| Over 3 years | 930,855.02 | 2.04 | ||
| Total | 45,738,805.90 | 100.00 | 45,859,491.55 | 100.00 |
(2) Top 5 of account paid in advance in balance at year-end amounting to 30,421,376.72 yuan, accounted for
66.51% of the account.
7. Other account receivable
| Item | Balance at year-end | Balance at year-begin |
| Other account receivable | 82,953,808.97 | 88,354,803.24 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2023 to December 31, 2023（Unless other wise specified, RMB for record in the statement)
| Item | Balance at year-end | Balance at year-begin |
| Total | 82,953,808.97 | 88,354,803.24 |
(1) Category of other account receivable
| Nature | Book balance at year-end | Book balance at year-begin |
| Export rebate | 41,300,752.20 | 13,304,094.59 |
| Cash deposit | 20,927,726.52 | 53,876,630.71 |
| Loans of employee’s pretty cash | 20,970,369.96 | 19,142,320.86 |
| Related party not in consolidation statement | 619,414.34 | 716,725.90 |
| Advance money temporary | 707,676.06 | 3,122,122.93 |
| Other | 1,488,175.37 | 1,174,866.78 |
| Total | 86,014,114.45 | 91,336,761.77 |
(2) By account age
| Account age | Balance at year-end | Balance at year-begin |
| Within 1 year（Including 1 year） | 74,641,189.07 | 44,978,802.65 |
| Including： | ||
| Within 3 months (3 months included) | 60,732,006.02 | 32,703,626.46 |
| More than 3 months and less than 6 months (6 months included) | 1,842,273.09 | 3,033,052.73 |
| Over 6 months and within one year (One year included) | 12,066,909.96 | 9,242,123.46 |
| Over one year - within 2 years (2 years included) | 3,017,092.43 | 16,985,265.38 |
| Over 2 years - within 3 years (3 years included) | 2,473,240.42 | 22,359,916.12 |
| Over 3 years | 5,882,592.53 | 7,012,777.62 |
| Total | 86,014,114.45 | 91,336,761.77 |
(3) Category of Other account receivable bad debt reserves
| Category | Amount at year-end | ||||
| Book balance | Bad debt provision | Book value | |||
| Amount | Ratio (%) | Amount | Ratio (%) | ||
| That withdrawal bad debt provision by single item | 85,698,646.43 | 99.63 | 2,945,873.36 | 3.44 | 82,752,773.07 |
| In which: other receivables with no major | 43,778,479.89 | 50.90 | 2,945,873.36 | 6.73 | 40,832,606.53 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2023 to December 31, 2023（Unless other wise specified, RMB for record in the statement)
| Category | Amount at year-end | ||||
| Book balance | Bad debt provision | Book value | |||
| Amount | Ratio (%) | Amount | Ratio (%) | ||
| individual amount but bad debt provision accrued individually | |||||
| Export tax refund | 41,300,752.20 | 48.01 | 41,300,752.20 | ||
| Related party funds | 619,414.34 | 0.72 | 619,414.34 | ||
| Bad debt provision accrued by portfolio | 315,468.02 | 0.37 | 114,432.12 | 36.27 | 201,035.90 |
| In which: other receivables accrued by aging portfolio | 315,468.02 | 0.37 | 114,432.12 | 36.27 | 201,035.90 |
| Total | 86,014,114.45 | 100.00 | 3,060,305.48 | 3.56 | 82,953,808.97 |
Continued
| Category | Balance at year-begin | ||||
| Book balance | Bad debt provision | Book value | |||
| Amount | Ratio (%) | Amount | Ratio (%) | ||
| That withdrawal bad debt provision by single item | 90,992,381.84 | 99.62 | 2,915,104.37 | 3.20 | 88,077,277.47 |
| accrued individually | 13,304,094.59 | 14.57 | 13,304,094.59 | ||
| Related party funds | 716,725.90 | 0.78 | 716,725.90 | ||
| Bad debt provision accrued by portfolio | 344,379.93 | 0.38 | 66,854.16 | 19.41 | 277,525.77 |
| In which: other receivables accrued by aging portfolio | 344,379.93 | 0.38 | 66,854.16 | 19.41 | 277,525.77 |
| Total | 91,336,761.77 | 100.00 | 2,981,958.53 | 3.26 | 88,354,803.24 |
1) Accrual of bad debt provision for other receivables
| 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. 2023 | 1,690,724.90 | 1,291,233.63 | 2,981,958.53 | |
| Book balance of other account receivable in Current Year as at 1 Jan. 2023 | — | — | — | — |
| --Transfer to the second stage |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2023 to December 31, 2023（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) | ||
| -- Transfer to the third stage | -1,188,850.00 | 1,188,850.00 | ||
| -- Reversal to the second stage | ||||
| -- Reversal to the first stage | ||||
| Provision in Current Year | 181.49 | 22,779.94 | 1,456,556.15 | 1,479,517.58 |
| Reversal in Current Year | 88,570.63 | 88,570.63 | ||
| Conversion in Current Year | ||||
| Write off in Current Year | ||||
| Other change | 377,600.00 | 935,000.00 | 1,312,600.00 | |
| Balance as at 31 Dec. 2023 | 181.49 | 58,484.21 | 3,001,639.78 | 3,060,305.48 |
（4）Bad debt provision for other receivables accrued, recovered or reversed this year
| Category | Year-beginning | Amount of change this year | Year-end | |||
| Accrual | Recovery or reversal | Write-off or cancellation | Other | |||
| Bad debt provision | 2,981,958.53 | 1,479,517.58 | 88,570.63 | 1,312,600.00 | 3,060,305.48 | |
| Total | 2,981,958.53 | 1,479,517.58 | 88,570.63 | 1,312,600.00 | 3,060,305.48 | |
（5）Other account receivable actually written-off in Current Year:N/A
(6) Top 5 other receivables collected by arrears party at balance of period-end
| Name | Nature | Balance at year-end | Account age | Proportion in total other receivables ending balance (%) | Bad debt provision Balance at year-end |
| Unit I | Tax rebate | 41,179,511.61 | Within 1 year | 47.88 | |
| Unit II | Cash deposit | 10,000,000.00 | Within 1 year | 11.63 | |
| Unit III | Cash deposit | 2,639,979.48 | Within 1 year, 2-3 years, Over 3 years | 3.07 | |
| Unit IV | Cash deposit | 2,490,621.17 | Within 1 year | 2.90 | |
| Unit V | Cash deposit | 2,324,874.66 | Within 1 year | 2.70 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2023 to December 31, 2023（Unless other wise specified, RMB for record in the statement)
| Name | Nature | Balance at year-end | Account age | Proportion in total other receivables ending balance (%) | Bad debt provision Balance at year-end |
| Total | 58,634,986.92 | 68.18 |
（7）There are no other receivables reported due to centralized management of funds.
8. Inventories
(1) Classification of inventories
| Item | Amount at year-end | ||
| Book balance | Inventory price decline provision/contract performance cost impairment provision | Book value | |
| Raw materials | 150,806,222.67 | 4,061,217.23 | 146,745,005.44 |
| Stock commodities | 1,216,300,557.72 | 60,027,642.16 | 1,156,272,915.56 |
| Low value consumable articles | 3,141,564.20 | 143,306.82 | 2,998,257.38 |
| Goods in transit | 641,198,998.83 | 7,934,263.70 | 633,264,735.13 |
| Goods-in-process | 7,337,268.01 | 7,337,268.01 | |
| Contract performance cost | 28,988,664.67 | 28,988,664.67 | |
| Deferred expense for mould | 47,131,566.78 | 47,131,566.78 | |
| Total | 2,094,904,842.88 | 72,166,429.91 | 2,022,738,412.97 |
Continued
| Item | Amount at year-begin | ||
| Book balance | Inventory price decline provision/contract performance cost impairment provision | Book value | |
| Raw materials | 174,848,711.84 | 6,676,011.97 | 168,172,699.87 |
| Stock commodities | 938,676,768.88 | 48,374,183.50 | 890,302,585.38 |
| Low value consumable articles | 2,653,770.39 | 871,871.72 | 1,781,898.67 |
| Goods in transit | 578,924,325.36 | 6,074,817.77 | 572,849,507.59 |
| Goods-in-process | 7,901,880.53 | 7,901,880.53 | |
| Contract performance cost | 41,622,651.08 | 41,622,651.08 | |
| Deferred expense for mould | 27,675,710.59 | 27,675,710.59 | |
| Total | 1,772,303,818.67 | 61,996,884.96 | 1,710,306,933.71 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2023 to December 31, 2023（Unless other wise specified, RMB for record in the statement)
(2) Provision for inventory depreciation and contract performance cost impairment provision
| Item | Amount at year-begin | Increase this year | Decrease this year | Amount at year-end | ||
| Accrual | Other | Reversal or reselling | Other | |||
| Raw materials | 6,676,011.97 | 2,262,820.96 | 4,877,615.70 | 4,061,217.23 | ||
| Stock commodities | 48,374,183.50 | 32,786,974.12 | 3,372.37 | 21,136,887.83 | 60,027,642.16 | |
| Goods in transit | 6,074,817.77 | 6,482,986.09 | 4,623,540.16 | 7,934,263.70 | ||
| Low value consumable articles | 871,871.72 | 275.02 | 728,839.92 | 143,306.82 | ||
| Total | 61,996,884.96 | 41,533,056.19 | 3,372.37 | 31,366,883.61 | 72,166,429.91 | |
(3) Accrual for inventory falling price reserves
| Item | Specific basis for determining of net realizable value | Reasons for the reversal or reselling in Current Year |
| 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 | 13,879,087.90 | 617,397.28 | 13,261,690.62 | 4,301,610.03 | 770,687.90 | 3,530,922.13 |
| Total | 13,879,087.90 | 617,397.28 | 13,261,690.62 | 4,301,610.03 | 770,687.90 | 3,530,922.13 |
(2)Amount and reasons for significant changes in book value during the year
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2023 to December 31, 2023（Unless other wise specified, RMB for record in the statement)
| Items | Change amount | Change cause |
| Warranty | 9,730,768.49 | New performance sales contract |
| Total | 9,730,768.49 | — |
(3) Provision for impairment of contract asset in the Period
| Category | Balance at year-end | ||||
| Book balance | Bad debt provision | Book value | |||
| Amount | Ratio (%) | Amount | Ratio (%) | ||
| Withdrawal bad debt provision by single | 13,879,087.90 | 100.00 | 617,397.28 | 4.45 | 13,261,690.62 |
| Total | 13,879,087.90 | 100.00 | 617,397.28 | 4.45 | 13,261,690.62 |
Continued
| Category | Amount at year-begin | ||||
| Book balance | Bad debt provision | Book value | |||
| Amount | Ratio (%) | Amount | Ratio (%) | ||
| Withdrawal bad debt provision by single | 4,301,610.03 | 100.00 | 770,687.90 | 17.92 | 3,530,922.13 |
| Total | 4,301,610.03 | 100.00 | 770,687.90 | 17.92 | 3,530,922.13 |
1）Bad debt provisions are made individually for contract assets
| Name | Amount at year-begin | Ending balance | ||||
| Book balance | Bad debt provision | Book balance | Bad debt provision | Ratio (%) | Reason | |
| Provision for bad debts of contract assets | 4,301,610.03 | 770,687.90 | 13,879,087.90 | 617,397.28 | 4.45 | |
| Total | 4,301,610.03 | 770,687.90 | 13,879,087.90 | 617,397.28 | — | — |
（4）The provision, recovery or transfer of bad debt provisions for contract assets this yearproject
| Item | Provision for this year | Transferred this year | Write -off this year | Reason |
| Provision for bad debts of contract assets | 153,272.28 | 306,562.90 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2023 to December 31, 2023（Unless other wise specified, RMB for record in the statement)
| Item | Provision for this year | Transferred this year | Write -off this year | Reason |
| Total | 153,272.28 | 306,562.90 | — |
10. Non-current assets coming due within one year
| Item | Balance at year-end | Balance at year -begin |
| Creditor's right investment due within one year | 122,294,027.78 | 170,167,638.89 |
| Total | 122,294,027.78 | 170,167,638.89 |
（1）Creditor's right investment due within one year
1）Creditor's right investment due within one year
| Name | Balance at year-end | Balance at year-begin | ||||
| Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
| large deposit certificates | 122,294,027.78 | 122,294,027.78 | 170,167,638.89 | 170,167,638.89 | ||
| Total | 122,294,027.78 | 122,294,027.78 | 170,167,638.89 | 170,167,638.89 | ||
2）.Creditor's right investment due within 1 year at the end of the year
| Item | Face value | Interest rate | Date of expiring | Actual rate | Overdue principal | ||
| Balance at year-end | Balance at year-begin | Balance at year-end | Balance at year-begin | ||||
| large deposit certificates | 20,000,000.00 | 3.70% | 2024-4-13 | 22,039,111.11 | 21,288,833.33 | ||
| large deposit certificates | 100,000,000.00 | 3.99% | 2024-2-8 | 100,254,916.67 | 100,254,916.67 | ||
| Total | 120,000,000.00 | — | — | — | — | ||
11.Other current asset
| Item | Balance at year-end | Balance at year-begin |
| VAT to be deducted | 193,911,165.30 | 39,540,856.28 |
| Advance payment of income tax | 29,599,620.50 | 22,673,762.88 |
| Contract acquisition cost | 701,222.80 | 5,654,727.03 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2023 to December 31, 2023（Unless other wise specified, RMB for record in the statement)
| Item | Balance at year-end | Balance at year-begin |
| Time deposits held to maturity | 50,559,479.17 | |
| Local sales tax in Pakistan | 511,584.19 | 1,269,125.78 |
| Other | 696,290.28 | 891,480.71 |
| Total | 225,419,883.07 | 120,589,431.85 |
12.Creditors' right investment
（1）creditor's right investment
| Item | Balance at year-end | Balance at year-begin | ||||
| Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
| large deposit certificates | 420,537,485.54 | 420,537,485.54 | 121,543,750.00 | 121,543,750.00 | ||
| Total | 420,537,485.54 | 420,537,485.54 | 121,543,750.00 | 121,543,750.00 | ||
（2）important creditor's right investment
| Item | balance at year-end | ||||
| Face value | Interest rate | Actual rate | Date of expiring | Overdue principal | |
| large deposit certificates | 100,000,000.00 | 3.20% | 3.20% | 2026-1-31 | |
| large deposit certificates | 80,000,000.00 | 3.35% | 3.35% | 2026-3-28 | |
| large deposit certificates | 30,000,000.00 | 3.20% | 3.20% | 2026-3-16 | |
| large deposit certificates | 30,000,000.00 | 3.30% | 3.30% | 2026-5-31 | |
| large deposit certificates | 50,000,000.00 | 3.30% | 3.30% | 2026-6-14 | |
| large deposit certificates | 50,000,000.00 | 3.10% | 3.10% | 2026-6-26 | |
| large deposit certificates | 20,000,000.00 | 3.15% | 3.15% | 2026-7-31 | |
| large deposit certificates | 25,000,000.00 | 3.25% | 3.25% | 2025-8-30 | |
| large deposit certificates | 25,000,000.00 | 3.30% | 3.30% | 2025-8-30 | |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2023 to December 31, 2023（Unless other wise specified, RMB for record in the statement)
| Item | balance at year-end | ||||
| Face value | Interest rate | Actual rate | Date of expiring | Overdue principal | |
| Total | 410,000,000.00 | — | — | — | |
Continued
| Item | Balance at year-begin | ||||
| Face value | Interest rate | Actual rate | Date of expiring | Overdue principal | |
| large deposit certificates | 100,000,000.00 | 3.99% | 3.99% | 2024-2-8 | |
| large deposit certificates | 20,000,000.00 | 3.70% | 3.70% | 2024-4-13 | |
| Total | 120,000,000.00 | — | — | — | |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1 ,2023 to December 31, 2023（Unless other wise specified, RMB for record in the statement)
13. Long-term equity investment
| Invested enterprise | Balance at year-begin | Impairment provision begin- year balance | Changes in Current Year | Balance at year-end | Balance at year-end 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. | 19,899,176.44 | 33,680.34 | 5,793,600.00 | 14,139,256.78 | ||||||||
| 2.Sichuan Zhiyijia Network Technology Co., Ltd. note1 | 51,850,179.61 | 18,633,005.73 | 1,629,022.64 | 68,854,162.70 | ||||||||
| 3.Hong Yuan Ground Energy Heat Tech. Co., Ltd.note2 | 17,019,041.81 | 24,500,000.00 | -1,847,143.30 | 9,328,101.49 | ||||||||
| 4.Sichuan Tianyou Guigu Technology Co., Ltd.note3 | 3,110,581.87 | -161,722.64 | 2,948,859.23 | |||||||||
| 5.Chengdu Guigu Environmental Tech. | 8,505,448. | 250,813.73 | ||||||||||
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1 ,2023 to December 31, 2023（Unless other wise specified, RMB for record in the statement)
| Invested enterprise | Balance at year-begin | Impairment provision begin- year balance | Changes in Current Year | Balance at year-end | Balance at year-end 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 | |||||
| Co., Ltd.note4 | 77 | 8,756,262.50 | ||||||||||
| 6.ChanghongRuba ElectricCompany(Private)Ltd.注5 | ||||||||||||
| 7. .Hefei Xinmei Solar Energy Technology Co., Ltd.note注6 | 2,177,980.00 | 2,177,980.00 | ||||||||||
| 8.Sichuan Hongyun Venture Investment Partnership（LP）注7 | 18,000,000.00 | 47,270.54 | 18,047,270.54 | |||||||||
| Total | 100,384,428.50 | 18,000,000.00 | 24,500,000.00 | 19,133,884.40 | 9,600,602.64 | 9,328,101.49 | 112,745,811.75 | |||||
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1 ,2023 to December 31, 2023（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 shareholderSichuan Changhong Electric Co., LTD, targeting to jointly establish Sichuan Zhiyijia Network Technology Co., Ltd.On 5 January 2015, Sichuan Zhiyijia Network Technology Co., Ltd was officially incorporated with registeredcapital of 50 million yuan, among which, the Company made contribution of 15 million yuanwith shareholdingproportion of 30% and Sichuan Changhong Electric Co., LTD made contribution of 35 million yuanwithshareholding proportion of 70%. In 2019, the Company increase capital of 29,087,040.00 yuan (of which: 20 millionyuan reckoned in registered capital and 9,087,040 yuan reckoned in capital reserves) to Zhiyijia with shareholdingratio up to 50%.Note 2: subsidiary Sichuan Changhong Air Conditioner Co., Ltd (“Changhong Air Conditioner”) and Hengyou yuanTechnology Development Group Co., Ltd. (“Hengyou yuan”) cooperated to establish Hong Yuan Ground EnergyHeat Technology Co., Ltd. on 28 October 2015. The registered capital of the company is 50 million yuan, amongwhich, Changhong Air Conditioner contributed 24.5 million yuan, accounting for 49% of the registered capital, andHengyou yuan contributed 25.5 million yuan, accounting for 51% of the registered capital. In December 2022, theshareholders' meeting of Hongyuan Ground Company passed the decision to cancel and liquidate the company, andthe liquidation and cancellation was completed within this year.Note 3: Sichuan Tianyou Guigu Technology Co., Ltd. was incorporated on 31 March 2015 with registered capitalof 100 million yuan. Our subsidiary Changhong Air Conditioner made capital contribution of RMB 25 million incash, accounting for 25% of the registered capital. Chengdu Jiaodao Property Development Company made capitalcontribution of 20 million yuan, accounting for 20% of the registered capital. Chengdu Southwest JiaotongUniversity Industry (Group) Co., Ltd made capital contribution of 20 million yuan, accounting for 20% of theregistered capital. Mianyang Investment Holding (Group) Co., Ltd made capital contribution of 5 million yuan,accounting for 5% of the registered capital. Shanghai Zhongcheng Xindaya Financial Information Service Co., Ltdmade capital contribution of 5 million yuan, accounting for 5% of the registered capital. Jiangsu Runye InvestmentCo., Ltd. made capital contribution of 10 million yuan, accounting for 10% of the registered capital. In November2015, Jiangsu Runye Investment Co., Ltd. transferred all its 10% shares to Sichuan Shuye Jiachen Real EstateDevelopment Co., Ltd.;Chengdu Dongyu Shangmao Co., Ltd made capital contribution of 15 million yuan,accounting for 15% of the registered capital.In November 2015, Chengdu Dongyu Shangmao Co., Ltd. transferredall its 15% shares to Chengdu Dongyu No. 1 Enterprise Management Consulting Partnership (LimitedPartnership).In 2016, shareholders meeting of Sichuan Tianyou Guigu Technology Co., Ltd. agreed to reduce the50 million Yuan capital, the shareholders are reducing the capital by ratio of share-holding. After capital reduction,subsidiary Changhong Air conditioner contributed 12.5 million Yuan, representing 25% of the registered capital.Note 4: Chengdu Guigu Environmental Tech. Co., Ltd. was incorporated on 22 May 2013 with registered capital of40 million yuan. Our subsidiary Changhong Air Conditioner made capital contribution of 10 million yuan,accounting for 25% of the registered capital. Chengdu Jiaodao Property Development Company made capitalcontribution of 8 million yuan, accounting for 20% of the registered capital. Chengdu Southwest Jiaotong UniversityIndustry (Group) Co., Ltd made capital contribution of 8 million yuan, accounting for 20% of the registered capital.
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1 ,2023 to December 31, 2023（Unless other wise specified, RMB for record in the statement)
Mianyang Investment Holding (Group) Co., Ltd made capital contribution of 2 million yuan, accounting for 5% ofthe registered capital. Shanghai Zhongcheng Xindaya Financial Information Service Co., Ltd made capitalcontribution of 2 million yuan, accounting for 5% of the registered capital. Sichuan Shuye Jiachen PropertyDevelopment Company made capital contribution of 4 million yuan, accounting for 10% of the registered capital.Chengdu Dongyu Shangmao Co., Ltd made capital contribution of 6 million yuan, accounting for 15% of theregistered capitalNote 5: Zhongshan Changhong, a subsidiary of the Company, entered into a supplemental joint venture agreementwith RUBA Comprehensive Trading Company in 2017, pursuant to which, both parties agreed to increase capitalcontribution of US$ 1,130,191.00, among which, Zhongshan Changhong subscribed to contribute US$ 452,076.00(equivalent to 3,001,649.02 yuan on the actual contribution date) according to the original shareholding proportionof 40% and RUBA Comprehensive Trading Company subscribed to contribute US$ 678,115.00 according to theoriginal shareholding proportion of 60%.Note 6: Hefei Meiling Solar Energy Technology Co., Ltd. was incorporated on April 18, 2002, with a registeredcapital of 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 millionyuan, accounting for 19.166% of the registered capital.Note 7.On May 5, 2023, the Company signed a partnership agreement with the controlling shareholder SichuanChanghong Electric Co.,Ltd., Sichuan Changhong Electronic (Group) Co., Ltd. and Sichuan Hongyun VentureEquity Investment Management Co., Ltd. to jointly establish Sichuan Hongyun Venture Capital Partnership(Limited Partnership) with a registered capital of RMB 148 million, of which RMB 45 million was subscribed bythe Company, with a shareholding ratio of 304.1%. This year, the Company actually contributed RMB 18 million.
14. Other non-current financial assets
| Item | Ending balance | Opening balance |
| Sichuan Changhong Group Finance Co., Ltd. | 554,145,436.29 | 542,489,224.37 |
| Sichuan Hongyun New-Generation Information technology Venture Capital Fund Partnership (limited partnership) | 36,507,860.19 | 41,015,878.36 |
| Changhong Group Sichuan Shenwan Hongyuan Strategic New Industrial Parent Fund Partnership (limited partnership) | 68,686,219.00 | 40,044,345.58 |
| Huishang Bank Co., Ltd. | 14,800,000.00 | 5,000,000.00 |
| Total | 674,139,515.48 | 628,549,448.31 |
15. Investment real estate
(1) Investment real estate measured at costs
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1 ,2023 to December 31, 2023（Unless other wise specified, RMB for record in the statement)
| Item | House and buildings | Total |
| I.Original book value | ||
| 1.Balance at year-begin | 62,361,143.47 | 62,361,143.47 |
| 2.Increase in this year | ||
| 3.Decrease in this year | ||
| 4.Balance at year-end | 62,361,143.47 | 62,361,143.47 |
| II.Accumulated depreciation and accumulated amortization | ||
| 1.Balance at year-begin | 9,463,082.58 | 9,463,082.58 |
| 2.Increase in this year | 1,977,573.18 | 1,977,573.18 |
| （1）Withdrawal or amortization | 1,977,573.18 | 1,977,573.18 |
| 3.Decrease in this year | ||
| 4.Balance at year-end | 11,440,655.76 | 11,440,655.76 |
| III.Impairment provision | ||
| IV.Book value | ||
| 1.Ending book value | 50,920,487.71 | 50,920,487.71 |
| 2. Opening book value | 52,898,060.89 | 52,898,060.89 |
(2) No investment real estate measured by fair value at year-end.
(3) Investment real estate without property certification held
| Item | Book value | Reasons for failing to complete property rights certificate |
| J04workshop | 26,619,770.82 | Related property rights in procedure |
| J03workshop | 18,395,279.76 | Related property rights in procedure |
| J20 air compressor station workshop | 1,314,489.13 | Related property rights in procedure |
| J18 opening and closing office | 636,117.23 | Related property rights in procedure |
| Total | 46,965,656.94 |
16.Fixed assets
| Item | Book value at year-end | Book value at year-begin |
| Fixed assets | 2,104,618,850.52 | 2,197,260,683.20 |
| Liquidation of fixed assets | 32,293,183.76 | 32,293,183.76 |
| Total | 2,136,912,034.28 | 2,229,553,866.96 |
16.1 Fixed assets
（1） Fixed assets
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1 ,2023 to December 31, 2023（Unless other wise specified, RMB for record in the statement)
| Item | House and buildings | Machinery equipment | Transport equipment | Other equipment | Total |
| I.Original book value | |||||
| 1.Balance at year-begin | 1,712,329,446.72 | 1,865,348,912.32 | 34,208,114.60 | 243,498,921.36 | 3,855,385,395.00 |
| 2.Increase in this year | 43,261,437.77 | 127,160,620.75 | 1,981,576.26 | 35,933,117.84 | 208,336,752.62 |
| (1)Purchase | 10,037,274.17 | 1,981,576.26 | 7,011,877.87 | 19,030,728.30 | |
| (2)Construction in progress transfer-in | 42,770,821.16 | 111,314,699.90 | 28,885,411.88 | 182,970,932.94 | |
| （3）Other increase | 490,616.61 | 5,808,646.68 | 35,828.09 | 6,335,091.38 | |
| 3.Decrease in this year | 17,917,779.20 | 150,468,417.32 | 679,157.25 | 8,178,141.27 | 177,243,495.04 |
| （1）Dispose or retirement | 46,817.00 | 61,989,767.62 | 514,675.38 | 7,693,871.79 | 70,245,131.79 |
| (2)Construction in progress transfer-in | 84,128,835.52 | 84,128,835.52 | |||
| （3）Other increase | 17,870,962.20 | 4,349,814.18 | 164,481.87 | 484,269.48 | 22,869,527.73 |
| 4.Balance at year-end | 1,737,673,105.29 | 1,842,041,115.75 | 35,510,533.61 | 271,253,897.93 | 3,886,478,652.58 |
| II.Accumulated depreciation | |||||
| 1.Balance at year-begin | 455,256,950.47 | 1,064,311,933.48 | 22,446,081.44 | 114,040,153.79 | 1,656,055,119.18 |
| 2.Increase in this year | 55,603,756.85 | 142,849,646.44 | 3,021,425.90 | 27,246,030.87 | 228,720,860.06 |
| (1)Accrual | 55,603,756.85 | 142,849,646.44 | 3,021,425.90 | 27,225,313.68 | 228,700,142.87 |
| （2）Other increase | 20,717.19 | 20,717.19 | |||
| 3.Decrease in this year | 3,172,136.80 | 92,885,751.89 | 610,384.11 | 7,359,926.59 | 104,028,199.39 |
| （1）Dispose or retirement | 22,180.29 | 54,711,171.42 | 484,471.72 | 7,007,459.33 | 62,225,282.76 |
| (2)Construction in progress transfer-in | 37,833,279.51 | 37,833,279.51 | |||
| （3）Other increase | 3,149,956.51 | 341,300.96 | 125,912.39 | 352,467.26 | 3,969,637.12 |
| 4.Balance at year-end | 507,688,570.52 | 1,114,275,828.03 | 24,857,123.23 | 133,926,258.07 | 1,780,747,779.85 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1 ,2023 to December 31, 2023（Unless other wise specified, RMB for record in the statement)
| Item | House and buildings | Machinery equipment | Transport equipment | Other equipment | Total |
| III.Impairment provision | |||||
| 1.Balance at year-begin | 1,060,299.52 | 1,009,293.10 | 2,069,592.62 | ||
| 2.Increase in this year | |||||
| 3.Decrease in this year | 946,836.82 | 10,733.59 | 957,570.41 | ||
| (1)Dispose or retirement | 924,106.56 | 10,733.59 | 934,840.15 | ||
| （2）Other decrease | 22,730.26 | 22,730.26 | |||
| 4.Balance at year-end | 113,462.70 | 998,559.51 | 1,112,022.21 | ||
| IV.Book value | |||||
| 1.Ending book value | 1,229,984,534.77 | 727,651,825.02 | 10,653,410.38 | 136,329,080.35 | 2,104,618,850.52 |
| 2. Opening book value | 1,257,072,496.25 | 799,976,679.32 | 11,762,033.16 | 128,449,474.47 | 2,197,260,683.20 |
The new fixed assets in this year mainly due to the 182,970,932.94 yuan transfer from construction in process;decrease of the fixed assets in Current Year mainly including assets dispose for retirement.
(2) Fixed assets temporary idle at year-end. N/A
(3) Fixed assets leased through operating lease at year-end
| Item | Original book value | Accumulated depreciation | Impairment provision | Book value |
| House and buildings | 77,095,418.04 | 30,649,122.95 | 46,446,295.09 | |
| Machinery equipment | 23,864,393.68 | 15,528,428.42 | 8,335,965.26 | |
| Other equipment | 10,720.00 | 10,184.00 | 536.00 | |
| Total | 100,970,531.72 | 46,187,735.37 | 54,782,796.35 |
(4) Fixed assets without property certificate
| Item | Book value | Reason of not complete the property certificate |
| J07 electrical workshop | 43,746,628.68 | Related property rights in procedure |
| J02workshop | 28,141,535.48 | Related property rights in procedure |
| J05 evaporator and condenser workshop | 27,102,662.73 | Related property rights in procedure |
| J01workshop | 26,083,556.62 | Related property rights in procedure |
| J06 central air-conditioner workshop | 18,404,265.79 | Related property rights in procedure |
| J50finished product warehouse | 16,219,453.72 | Related property rights in procedure |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1 ,2023 to December 31, 2023（Unless other wise specified, RMB for record in the statement)
| Item | Book value | Reason of not complete the property certificate |
| J51finished product warehouse | 15,737,406.33 | Related property rights in procedure |
| J53finished product warehouse | 11,941,524.09 | Related property rights in procedure |
| J52finished product warehouse | 11,412,002.93 | Related property rights in procedure |
| J54finished product warehouse | 11,160,992.28 | Related property rights in procedure |
| J55finished product warehouse | 10,290,013.27 | Related property rights in procedure |
| J56 finished product warehouse | 10,290,013.27 | Related property rights in procedure |
| J09raw material warehouse | 6,238,503.81 | Related property rights in procedure |
| J10raw material warehouse | 4,821,256.39 | Related property rights in procedure |
| J11raw material warehouse | 4,749,533.53 | Related property rights in procedure |
| J08 packing materials warehouse | 4,328,338.68 | Related property rights in procedure |
| J17 chemical storage | 1,481,542.49 | Related property rights in procedure |
| J15 house of refrigerant forklift | 1,451,852.84 | Related property rights in procedure |
| J16 chemical storage | 1,195,695.94 | Related property rights in procedure |
| J19 main guard room | 354,683.89 | Related property rights in procedure |
| J19A guard room | 188,172.78 | Related property rights in procedure |
| J19D guard room | 138,334.30 | Related property rights in procedure |
| J19E guard room | 138,334.30 | Related property rights in procedure |
| Total | 255,616,304.14 |
16.2 Disposal of fixed assets
| Item | Amount at year-end | Amount at year-begin | Reasons for disposal transferred |
| Relevant assets disposal for reserved lands | 32,293,183.76 | 32,293,183.76 | Relocation for land reserve |
Pursuant to the urban planning requirements of Hefei Municipal Government and the Government of Feidongcounty, the land reserve center of Feidong county will purchase and store the land use right of an economicdevelopment zone located at Feidong county, Hefei city, which is owned by the Company’s subordinate companies,Equator Electric and Equator Home Appliance, respectively, with an area of 19,245.09 sq.m. (Approximately 28.87mu, Land Use Right Certificate No.: Dong Guo Yong (2008) No. 0366, the stated use of the land is for industrialpurpose) and an area of 46,161.9 sq.m. (Approximately 69.24 mu, Land Use Right Certificate No.: Dong Guo Yong(2008) No. 0367, the stated use of the land is for industrial purpose). The total consideration for purchasing andstorage is approximately 36 million yuan, of which the consideration for the land use right owned by EquatorElectric and Equator Home Appliance is approximately 10.59 million yuan and 25.41 million yuan, respectively.The Company has completed the relocation of occupants of the premises, and the net fixed assets in relation to theland will transfer as disposal, accounting treatment will be conduct in line with relevant rules upon receiving of the
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1 ,2023 to December 31, 2023（Unless other wise specified, RMB for record in the statement)
relocation compensation.No impairment of relevant assets disposal for reserved lands at year-end.
17. Construction in progress
| Item | Balance at year-end | Balance at year-begin |
| Construction in progress | 69,920,839.20 | 66,522,492.77 |
| Total | 69,920,839.20 | 66,522,492.77 |
(1) Details of construction in progress
| Item | Balance at year-end | Balance at year-begin | ||||
| Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
| Air conditioning manufacturing system capacity upgrading projec | 24,062,124.83 | 24,062,124.83 | ||||
| Zhongshan Changhong technical transformation project | 7,036,680.59 | 7,036,680.59 | 615,619.91 | 615,619.91 | ||
| Industrial Internet Changhong Meiling Promotion Project | 5,563,207.57 | 5,563,207.57 | 13,041,733.93 | 13,041,733.93 | ||
| New flat color plate door shell line project | 2,155,584.07 | 2,155,584.07 | ||||
| Transformation and maintenance project of large line for B-line shift recovery | 2,048,088.46 | 2,048,088.46 | ||||
| To-be-installed equipment project | 2,003,069.71 | 2,003,069.71 | ||||
| Commercial kitchen refrigerator cabinet project | 1,894,989.00 | 1,894,989.00 | 2,627,743.25 | 2,627,743.25 | ||
| Projects to improve the capacity and production efficiency of the washing machine manufacturing company in the first quarter | 1,624,647.04 | 1,624,647.04 | ||||
| Fixed assets project of 7 kg supporting production equipment | 1,534,513.28 | 1,534,513.28 | ||||
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1 ,2023 to December 31, 2023（Unless other wise specified, RMB for record in the statement)
| Item | Balance at year-end | Balance at year-begin | ||||
| Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
| Large refrigerator efficiency improvement and transformation project | 1,388,626.00 | 1,388,626.00 | ||||
| Rectification project of elevators and fire hazards in charging area of finished product warehouse | 1,124,589.14 | 1,124,589.14 | ||||
| Manufacturing system automation project in 2023 | 1,113,002.29 | 1,113,002.29 | ||||
| Extrusion and crushing capacity improvement demand project of Hefei refrigerator manufacturing company | 1,033,130.00 | 1,033,130.00 | ||||
| New plastic vacuum forming machine project | 1,027,433.62 | 1,027,433.62 | ||||
| Adaptability transformation project of fin stamping production line and its supporting equipment | 2,634,632.94 | 2,634,632.94 | ||||
| Liquid nitrogen tank production line construction project | 680,956.02 | 680,956.02 | 560,521.11 | 560,521.11 | ||
| Laboratory investment projects | 627,076.10 | 627,076.10 | 2,384,325.39 | 2,384,325.39 | ||
| Supporting production equipment of washing machine | 617,699.12 | 617,699.12 | 1,919,823.02 | 1,919,823.02 | ||
| Meiling extrusion line relocation and capacity expansion project | 339,115.04 | 339,115.04 | 6,938,682.02 | 6,938,682.02 | ||
| Efficiency improvement of refrigerator cabinet | 182,748.20 | 182,748.20 | ||||
| Comprehensive renovation project of mixed flow of rainwater and sewage in freezer park and living area | 6,995,545.89 | 6,995,545.89 | ||||
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1 ,2023 to December 31, 2023（Unless other wise specified, RMB for record in the statement)
| Item | Balance at year-end | Balance at year-begin | ||||
| Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
| Accident emergency pool construction project | 1,539,361.49 | 1,539,361.49 | ||||
| Comprehensive renovation project of mixed flow of rainwater and sewage in freezer park and living area | 2,597,950.95 | 2,597,950.95 | ||||
| Front-end expansion project of Hefei base with an annual output of 10 million refrigerator cabinets | 3,242,813.99 | 3,242,813.99 | ||||
| Refrigerator park 35 kV substation construction project | 1,273,661.54 | 1,273,661.54 | ||||
| Door lining to homemade phase I project | 2,328,292.80 | 2,328,292.80 | ||||
| Multi-door shell molding line | 5,053,126.87 | 5,053,126.87 | ||||
| Large refrigerator low boiling point foaming equipment renovation project | 1,652,011.04 | 1,652,011.04 | ||||
| Freeze lining structure changed to bottom package side | 2,886,521.55 | 2,886,521.55 | ||||
| 21 years of Manufacturing System Automation Project (Phase I) | 186,700.00 | 186,700.00 | ||||
| Meiling PLM project | 237,168.14 | 237,168.14 | ||||
| Other petty projects | 11,411,674.38 | 11,411,674.38 | 10,258,141.68 | 10,258,141.68 | ||
| Total | 69,920,839.20 | 69,920,839.20 | 66,522,492.77 | 66,522,492.77 | ||
18. Right-of-use assets
| Item | House and buildings | Total |
| I. Original book value |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1 ,2023 to December 31, 2023（Unless other wise specified, RMB for record in the statement)
| Item | House and buildings | Total |
| 1.Balance at year-begin | 58,322,978.95 | 58,322,978.95 |
| 2.Increase in this year | 29,503,973.75 | 29,503,973.75 |
| (1) Rent in | 29,503,973.75 | 29,503,973.75 |
| 3. Decrease in this year | 25,821,804.55 | 25,821,804.55 |
| （1）lease expired | 25,821,804.55 | 25,821,804.55 |
| 4.Balance at year-end | 62,005,148.15 | 62,005,148.15 |
| II.Accumulated depreciation | ||
| 1.Balance at year-begin | 21,676,843.85 | 21,676,843.85 |
| 2. Increase in this year | 8,872,309.05 | 8,872,309.05 |
| (1)Accrual | 8,872,309.05 | 8,872,309.05 |
| 3. Decrease in this year | 18,537,405.36 | 18,537,405.36 |
| （1）lease expired | 18,537,405.36 | 18,537,405.36 |
| 4.Balance at year-end | 12,011,747.54 | 12,011,747.54 |
| III.Impairment provision | ||
| 1.Balance at year-begin | ||
| 2. Increase in this year | ||
| 3. Decrease in this year | ||
| 4.Balance at year-end | ||
| IV.Book value | ||
| 1.Ending book value | 49,993,400.61 | 49,993,400.61 |
| 2. Opening book value | 36,646,135.10 | 36,646,135.10 |
The Company accrual the depreciation on right-of-use assets from the commencement date of the lease period.Depending on use of the assets, amount of accrual will included in costs of relevant assets or current gain/loss.
19. Intangible assets
(1) Intangible assets
| Item | Land use right | Trademark special right | Non-patent technology | Patent technology | Other | Total |
| I.Original book value | ||||||
| 1.Balance at year-begin | 864,798,616.68 | 283,292,439.34 | 637,791,820.51 | 148,876,015.35 | 10,911,637.00 | 1,945,670,528.88 |
| 2.Increase in this year | 105,295,988.38 | 56,025,706.04 | 281,800.00 | 161,603,494.42 | ||
| (1) Internal | 96,484,623.15 | 56,025,706.04 | 281,800.00 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1 ,2023 to December 31, 2023（Unless other wise specified, RMB for record in the statement)
| Item | Land use right | Trademark special right | Non-patent technology | Patent technology | Other | Total |
| research | 152,792,129.19 | |||||
| （2）Other | 8,811,365.23 | 8,811,365.23 | ||||
| 3.Decrease in this year | 60,000.00 | 8,811,365.23 | 8,871,365.23 | |||
| (1) Disposal | ||||||
| (2)Other decreases | 60,000.00 | 8,811,365.23 | 8,871,365.23 | |||
| 4.Balance at year-end | 864,798,616.68 | 283,292,439.34 | 743,027,808.89 | 196,090,356.16 | 11,193,437.00 | 2,098,402,658.07 |
| II.Accumulated amortization | ||||||
| 1.Balance at year-begin | 214,959,291.84 | 283,292,439.34 | 449,672,240.15 | 48,405,910.79 | 3,169,107.30 | 999,498,989.42 |
| 2.Increase in this year | 18,422,044.59 | 100,621,606.54 | 28,534,580.71 | 1,066,351.37 | 148,644,583.21 | |
| (1)Accrual | 18,422,044.59 | 100,621,606.54 | 28,534,580.71 | 1,066,351.37 | 148,644,583.21 | |
| 3.Decrease in this year | ||||||
| 4.Balance at year-end | 233,381,336.43 | 283,292,439.34 | 550,293,846.69 | 76,940,491.50 | 4,235,458.67 | 1,148,143,572.63 |
| III.Impairment provision | ||||||
| 1.Balance at year-begin | 33,820,367.20 | 7,274,668.72 | 4,508,495.33 | 45,603,531.25 | ||
| 2.Increase in this year | 7,183,626.21 | 11,016,493.25 | 18,200,119.46 | |||
| (1)Accrual | 7,183,626.21 | 11,016,493.25 | 18,200,119.46 | |||
| 3.Decrease in this year | ||||||
| 4.Balance at year-end | 41,003,993.41 | 18,291,161.97 | 4,508,495.33 | 63,803,650.71 | ||
| IV.Book value | ||||||
| 1.Ending book value | 631,417,280.25 | 151,729,968.79 | 100,858,702.69 | 2,449,483.00 | 886,455,434.73 | |
| 2. Opening book | 93,195,435.84 | 3,234,034.37 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1 ,2023 to December 31, 2023（Unless other wise specified, RMB for record in the statement)
| Item | Land use right | Trademark special right | Non-patent technology | Patent technology | Other | Total |
| value | 649,839,324.84 | 154,299,213.16 | 900,568,008.21 |
The intangible assets resulted from internal research takes 7.28% of the balance of intangible assets at year-end
(2) No land use right without property certification done at year-end
(3) Impairment test of intangible assets
The recoverable amount is determined according to the present value of the expected future cash flow
| Item | Book value | Recoverable amount | Impairment amount | Number of years of forecast period | Key parameters of forecast period | Key parameters of stable period | Determination basis of key parameters in stable period |
| Ice washing intangible assets 1 | 1,028,634.79 | 435,094.51 | 593,540.28 | 3 | Sales volume, income, cost | ||
| Ice washing intangible assets 2 | 617,999.09 | 617,999.09 | 3 | Sales volume, income, cost | |||
| Ice washing intangible assets 3 | 579,421.08 | 195,652.66 | 383,768.42 | 3 | Sales volume, income, cost | ||
| Ice washing intangible assets 4 | 4,145,708.73 | 529,410.04 | 3,616,298.69 | 3 | Sales volume, income, cost | ||
| Air-conditioning intangible assets 1 | 13,410,734.39 | 422,221.41 | 12,988,512.98 | 5 | Sales volume, income, cost | ||
| Total | 19,782,498.08 | 1,582,378.62 | 18,200,119.46 | — | — | — | — |
20. Goodwill
(1) Original value of goodwill
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1 ,2023 to December 31, 2023（Unless other wise specified, RMB for record in the statement)
| Invested enterprise | Balance at year-begin | Increase this year | Decrease this year | Balance at year-end | ||
| 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 | Balance at year-begin | Increase this year | Decrease this year | Balance at year-end | ||
| 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 | ||||
Note: The Company’s goodwill has been fully accrued for impairment reserves at year-end.
21. Long-term prepaid expenses
| Item | Opening balance | Increase this period | Amortization for the period | Other decreases | Ending balance |
| Long-term prepaid expenses | 14,900,600.59 | 29,997,082.89 | 9,199,217.86 | 35,698,465.62 | |
| Total | 14,900,600.59 | 29,997,082.89 | 9,199,217.86 | 35,698,465.62 |
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 ir-reparable losses | 575,117,840.02 | 86,267,676.00 | 684,314,381.95 | 102,647,157.29 |
| Deferred income tax assets recognized from assets impairment | 312,522,821.29 | 47,114,940.66 | 220,654,506.50 | 33,098,175.98 |
| Deferred income tax assets recognized from deferred income | 89,179,865.35 | 13,376,979.81 | 100,794,535.00 | 15,119,180.24 |
| Deferred income tax assets recognized | 52,138,935.61 | 7,287,948.90 | 38,239,898.15 | 4,935,157.87 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1 ,2023 to December 31, 2023（Unless other wise specified, RMB for record in the statement)
| Item | Ending balance | Opening balance | ||
| Deductible temporary difference | Deferred income tax assets | Deductible temporary difference | Deferred income tax assets | |
| by lease liabilitie | ||||
| Deferred income tax assets recognized from accrual liability | 31,904,790.39 | 4,785,718.56 | 12,624,332.22 | 1,893,649.84 |
| Deferred income tax assets recognized from Dismission welfare | 13,940,576.25 | 2,091,086.44 | 9,072,708.08 | 1,360,906.21 |
| Accrued income tax assets | 6,464,906.83 | 1,367,611.03 | 8,718,636.16 | 1,666,526.91 |
| Deferred income tax assets recognized by changes in fair value | 323,557.50 | 48,533.63 | ||
| Deferred income tax assets recognized for development expenditure | 5,632,939.75 | 844,940.96 | ||
| Total | 1,081,593,293.24 | 162,340,495.03 | 1,080,051,937.81 | 161,565,695.30 |
(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 changes in fair value | 72,922,565.81 | 10,938,384.87 | 57,642,166.20 | 8,646,324.93 |
| Deferred income tax liabilities recognized by use asset | 49,993,400.61 | 7,031,136.31 | 36,646,135.08 | 4,758,755.78 |
| Recognized by fixed assets depreciation | 25,632,968.47 | 3,844,945.25 | 27,362,815.80 | 4,104,422.37 |
| Total | 148,548,934.89 | 21,814,466.43 | 121,651,117.08 | 17,509,503.08 |
(3) Details of unrecognized deferred income tax assets
| Item | Ending balance | Opening balance |
| Deductible temporary difference | 159,108,623.94 | 168,621,827.52 |
| Deductible loss | 216,256,401.45 | 1,068,180,146.62 |
| Total | 375,365,025.39 | 1,236,801,974.14 |
23. Other non-current assets
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1 ,2023 to December 31, 2023（Unless other wise specified, RMB for record in the statement)
| Item | Amount at year-end | Amount at year-begin | ||||
| Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
| Prepaid equipment, engineering, etc. | 15,299,373.85 | 15,299,373.85 | 893,238.57 | 893,238.57 | ||
| Contract asset | 11,955,960.50 | 653,720.00 | 11,302,240.50 | |||
| Total | 27,255,334.35 | 653,720.00 | 26,601,614.35 | 893,238.57 | 893,238.57 | |
24.Assets with restricted ownership or use right
| Item | Year-end | |||
| Book Balance | Book value | Restriction type | Restriction information | |
| Monetary funds | 438,655,288.66 | 438,655,288.66 | Frozen | Security deposit; Frozen for litigation |
| Receivable financing | 997,291,535.93 | 997,291,535.93 | Pledge | Pledge for issuing bank acceptance bills |
| Fixed assets | 478,732,601.33 | 321,209,491.52 | Mortgage | Loan mortgage |
| Intangible assets | 415,797,056.93 | 264,252,595.08 | Mortgage | Loan mortgage |
| Real estate investment | 5,795,017.72 | 3,097,441.68 | Mortgage | Loan mortgage |
| Total | 2,336,271,500.57 | 2,024,506,352.87 | — | — |
Continued
| Item | Year-Begin | |||
| Book Balance | Book value | Restriction type | Restriction information | |
| Monetary funds | 718,777,132.92 | 718,777,132.92 | Frozen | Security deposit; Frozen for litigation |
| Receivable financing | 405,400,483.49 | 405,400,483.49 | Pledge | Pledge for issuing bank acceptance bills |
| Fixed assets | 477,550,851.88 | 335,613,742.86 | Mortgage | Loan mortgage |
| Intangible assets | 415,797,056.93 | 272,690,841.98 | Mortgage | Loan mortgage |
| Real estate investment | 5,795,017.72 | 3,278,221.44 | Mortgage | Loan mortgage |
| Total | 2,023,320,542.94 | 1,735,760,422.69 | — | — |
25. Short-term loans
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1 ,2023 to December 31, 2023（Unless other wise specified, RMB for record in the statement)
(1)Classification of short-term loans
| Category | Ending balance | Opening balance |
| Guaranteed loan | 5,000,000.00 | 55,000,000.00 |
| Loan in credit | 1,128,967,080.14 | 619,000,000.00 |
| Interest payable | 135,338.89 | 143,916.67 |
| Total | 1,134,102,419.03 | 674,143,916.67 |
(2)Short-term loans overdue：N/A.
26. Trading financial liability
| Item | Balance at year-end | Balance at year-begin |
| Trading financial liability | 32,229,012.86 | 41,961,524.78 |
| Including: Derivative financial liability | 32,229,012.86 | 41,961,524.78 |
27. Note payable
| Type | Balance at year-end | Balance at year-begin |
| Bank acceptance | 5,604,059,289.98 | 4,814,889,712.60 |
| Trade acceptance | 300,327,800.00 | 149,484,800.00 |
| Total | 5,904,387,089.98 | 4,964,374,512.60 |
There were no Notes payable that were due but unpaid at the end of the year.
28. Account payable
(1) Account payable
| Item | Amount at year-end | Amount at year-begin |
| Total | 3,882,303,908.89 | 2,917,997,138.00 |
| Including: Amount aged over 1 year | 87,743,285.28 | 60,523,652.84 |
(2) Major account payable with over one year book age at year-end.:N/A
29 Received in advance.
| Category | Amount at year-end | Amount at year-begin |
| Total | 55,949.90 | |
| Including: Amount aged over 1 year |
30. Contract liabilities
(1) Contract liabilities
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1 ,2023 to December 31, 2023（Unless other wise specified, RMB for record in the statement)
| Item | Amount at year-end | Amount at year-begin |
| Total | 405,698,756.02 | 358,755,397.77 |
| Including: Amount aged over 1 year | 42,798,796.43 | 29,823,819.05 |
(2) Major contract liabilities with over one year book age at year-end.: N/A
（3）Significant changes in book value this year.: N/A
31. Wages payable
(1) Category
| Item | Balance at year-begin | Increase this year | Decrease this year | Balance at year-end |
| Short-term compensation | 323,031,068.96 | 1,940,853,268.37 | 1,826,488,008.55 | 437,396,328.78 |
| After-service welfare- defined contribution plans | 20,496,424.32 | 130,607,322.88 | 149,350,753.71 | 1,752,993.49 |
| Dismiss welfare | 4,627,421.85 | 5,351,632.96 | 5,516,160.52 | 4,462,894.29 |
| Total | 348,154,915.13 | 2,076,812,224.21 | 1,981,354,922.78 | 443,612,216.56 |
(2) Short-term compensation
| Item | Balance at year-begin | Increase this year | Decrease this year | Balance at year-end |
| Wages, bonuses, allowances and subsidies | 311,848,079.07 | 1,763,520,099.95 | 1,646,156,298.23 | 429,211,880.79 |
| Welfare for workers and staff | 402,556.82 | 44,956,094.77 | 44,800,915.71 | 557,735.88 |
| Social insurance | 5,220,685.85 | 55,304,847.10 | 58,824,501.74 | 1,701,031.21 |
| Including: Medical insurance | 4,811,752.39 | 51,120,600.05 | 54,344,297.18 | 1,588,055.26 |
| Work injury insurance | 325,176.62 | 3,877,243.14 | 4,173,200.65 | 29,219.11 |
| Maternity insurance | 83,756.84 | 307,003.91 | 307,003.91 | 83,756.84 |
| Housing accumulation fund | 5,115,350.86 | 71,450,059.56 | 71,153,065.18 | 5,412,345.24 |
| Labor union expenditure and personnel education expense | 444,396.36 | 5,622,166.99 | 5,553,227.69 | 513,335.66 |
| Total | 323,031,068.96 | 1,940,853,268.37 | 1,826,488,008.55 | 437,396,328.78 |
(3) Defined contribution plans
| Item | Balance at year-begin | Increase this year | Decrease this year | Balance at year-end |
| Basic endowment | 18,215,805.28 | 117,094,798.57 | 134,712,242.46 | 598,361.39 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1 ,2023 to December 31, 2023（Unless other wise specified, RMB for record in the statement)
| Item | Balance at year-begin | Increase this year | Decrease this year | Balance at year-end |
| insurance | ||||
| Unemployment insurance | 2,280,619.04 | 13,512,524.31 | 14,638,511.25 | 1,154,632.10 |
| Total | 20,496,424.32 | 130,607,322.88 | 149,350,753.71 | 1,752,993.49 |
32. Tax payable
| Item | Balance at year-end | Balance at year-begin |
| Value-added tax | 16,433,804.39 | 30,277,729.74 |
| Enterprise income tax | 22,442,997.30 | 1,822,555.65 |
| Individual income tax | 9,049,531.30 | 4,799,031.61 |
| Urban maintenance and construction tax | 8,800,180.85 | 9,544,272.36 |
| Real estate tax | 3,702,169.69 | 3,658,985.41 |
| Land use tax | 1,430,553.17 | 1,431,191.08 |
| Educational surtax | 6,388,436.72 | 6,850,511.36 |
| Stamp tax | 4,270,122.54 | 3,654,400.08 |
| Construction fund of Water Conservancy Projects | 663,334.83 | 668,948.01 |
| Treatment fund for abandon electrics & electronics | 16,436,695.00 | 17,508,786.00 |
| Other | 2,299,925.92 | 71,467.32 |
| Total | 91,917,751.71 | 80,287,878.62 |
33. Other account payable
| Item | Balance at year-end | Balance at year-begin |
| Dividend payable | 5,384,407.44 | 4,978,994.16 |
| Other account payable | 879,330,313.86 | 823,228,574.05 |
| Total | 884,714,721.30 | 828,207,568.21 |
33.1 Dividend payable
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1 ,2023 to December 31, 2023（Unless other wise specified, RMB for record in the statement)
| Item | Balance at year-end | Balance at year-begin |
| The People’s Insurance Company (Group) of China Limited | 432,607.23 | 432,607.23 |
| Hefei Branch of Bank of China | 446,576.60 | 391,245.50 |
| Hefei Collective Industrial Association | 446,575.90 | 391,244.89 |
| Provincial trust and investment company Wuhu office | 357,261.30 | 312,996.42 |
| China Life Insurance Group Co., Ltd. | 288,404.82 | 288,404.82 |
| BOC- Fullgoal Tianyi Securities Investment Fund | 153,697.50 | 153,697.50 |
| Other units | 3,259,284.09 | 3,008,797.80 |
| Total | 5,384,407.44 | 4,978,994.16 |
33.2 Other account payable
(1) Other account payable by nature
| Nature | Balance at year-end | Balance at year-begin |
| Accrued expenses (expenses occurred without reimbursed) | 381,110,482.12 | 344,028,624.89 |
| Receivables received temporary and deducted temporary | 13,201,384.59 | 13,166,091.61 |
| Deposit, margin | 170,042,120.52 | 174,331,550.53 |
| Not the come-and-go with related parties in statement scope | 285,951,275.98 | 278,716,366.01 |
| Other | 29,025,050.65 | 12,985,941.01 |
| Total | 879,330,313.86 | 823,228,574.05 |
(2) At end of the year, the major other account payable with account age over one year mainly refers to the depositand margin. :N/A
34. Non-current liability due within one year
| Item | Balance at year-end | Balance at year-begin |
| Long-term loan principal and interest due within one year | 40,172,155.56 | 20,211,488.89 |
| Lease liabilities due within one year | 8,650,642.91 | 10,075,610.19 |
| Total | 48,822,798.47 | 30,287,099.08 |
35. Other current liabilities
| Item | Balance at year-end | Balance at year-begin |
| Pending sales tax | 18,915,531.41 | 21,970,126.59 |
| Factoring fees payable | 218,335.59 | 635,142.92 |
| Bill recovery | 38,674.50 | |
| Total | 19,172,541.50 | 22,605,269.51 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1 ,2023 to December 31, 2023（Unless other wise specified, RMB for record in the statement)
36. Long term borrowings
(1) Category of long term borrowings
| Category | Amount at year-end | Amount at year-begin |
| Loan in mortgage | 108,000,000.00 | 148,000,000.00 |
| Total | 108,000,000.00 | 148,000,000.00 |
(2) Long-term borrowings at year-end
| Loan from | Borrowing day | Returning day | Foreign currency | Interest rate | Amount at year-end (RMB) | Amount at year-begin(RMB) |
| EIBC (Export-Import Bank) Anhui Province Branch note1 | 2020/3/26 | 2026/11/25 | RMB | 4.105% | 98,000,000.00 | 98,000,000.00 |
| EIBC (Export-Import Bank) Anhui Province Branch note2 | 2019/12/23 | 2026/11/25 | RMB | 4.005% | 10,000,000.00 | 50,000,000.00 |
| Total | 108,000,000.00 | 148,000,000.00 |
Note 1: The Company signed the "Loan Contract (Promoting the Opening-up of Loans in China - Fixed Assets)"with the Export-Import Bank of China Anhui Branch, the Company's fixed assets and intangible assets are used asmortgage for a long-term loan under the contract. And withdrawal of 98,000,000.00 yuan on March 26, 2020. Theterm of the loan is from March 26, 2020 to November 25, 2026, the interest rate of the loan is determined accordingto the market quotation rate of the loan with a term of more than 5 years reduced by 0.195%, which fluctuatesannually, and the amount of the loan is 98,000,000.00 yuan. The balance at the end of the year is RMB 98,000,000.00.Note 2: The Company signed the "Loan Contract (Promoting the Opening-up of Loans in China - Fixed Assets)"with the Export-Import Bank of China Anhui Branch, the Company's investment real estate, fixed assets andintangible assets are used as mortgage for the loan. The term of the loan is from December 23, 2019 to November25, 2026, the interest rate of the loan is determined according to the market quotation rate of the loan with a term ofmore than 5 years reduced by 0.195%, which fluctuates annually, and the amount of the loan is 100,000,000.00yuan. According to the repayment plan agreed with the bank, the Company has repaid 50,000,000.00 yuan. It plansto repay 20,000,000.00 yuan on June 25, 2024 and repay 20,000,000.00 yuan on December 25, 2024, a total of40,000,000.00 yuan has been reclassified to non-current liabilities due within one year. The balance at the end ofthe year is RMB 10,000,000.00.
37. Lease liability
| Item | Balance at year-end | Balance at year-begin |
| Lease liability | 43,488,292.70 | 28,164,287.97 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1 ,2023 to December 31, 2023（Unless other wise specified, RMB for record in the statement)
| Item | Balance at year-end | Balance at year-begin |
| Total | 43,488,292.70 | 28,164,287.97 |
38. Long-term payable
| Item | Balance at year-end | Balance at year-begin |
| Special payable | 800,347.84 | 1,145,286.48 |
| Total | 800,347.84 | 1,145,286.48 |
38.1Special payable
| Item | Balance at year-begin | Increase this year | Decrease this year | Balance at year-end | Reason |
| Special funds for technological transformation from Zhongshan Changhong | 1,145,286.48 | 344,938.64 | 800,347.84 | Technology plan project in Zhongshan City |
39. Long-term wage payable
| Item | Balance at year-end | Balance at year-begin |
| Dismissal welfare | 11,417,181.82 | 10,790,859.64 |
| Total | 11,417,181.82 | 10,790,859.64 |
According to the internal early retirement policy, the long-term payable dismissal welfare bears by the Companyup to year-end amounting to 11,417,181.82 yuan
40. Accrual liability
| Item | Balance at year-end | Balance at year-begin | Reason |
| Product quality guarantee note1 | 29,939,918.07 | 30,965,097.36 | Product warranty |
| Litigation matters note2 | 2,114,872.32 | 1,720,534.42 | |
| Total | 32,054,790.39 | 32,685,631.78 |
Note 1: Product quality deposit is the maintenance expense provided by the Company under the national policy.Note2: In November 2021, Zhejiang Teruisi Pharmaceutical Inc. filed a lawsuit against Zhongke Meiling for the"Cold Storage Design, Equipment Purchase and Installation Construction Contract". Currently, quality of the subjectunder the contract is being authenticated by a third party engineering quality appraisal agency, the initial start-upoperation test is now completed. Zhongke Meiling intends to maintain the cold storage project, and the estimatedmaintenance cost is 1,720,534.42 yuan. The management has provided a total estimated liability of 394337.90 yuanfor other business lawsuits.
41. Deferred income
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1 ,2023 to December 31, 2023（Unless other wise specified, RMB for record in the statement)
| Item | Balance at year-begin | Increase this year | Decrease this year | Balance at year-end | Reason |
| Government subsidies---subsidies of development project | 127,493,219.76 | 2,744,400.00 | 28,197,396.49 | 102,040,223.27 | |
| Government subsidies---subsidies of Relocation | 33,520,692.15 | 2,583,421.09 | 30,937,271.06 | ||
| Total | 161,013,911.91 | 2,744,400.00 | 30,780,817.58 | 132,977,494.33 |
42. Share capital
| Items | Balance at year-begin | Change during the year (+、-)） | Ending balance | ||||
| New shares issued | Bonus share | Shares transferred from capital reserve | Other | Subtotal | |||
| Total shares | 1,029,923,715.00 | 1,029,923,715.00 | |||||
43. Capital reserve
| Item | Opening balance | Increase this period | Decrease this period | Ending balance |
| Share premium | 2,758,450,812.90 | 990,446.53 | 2,757,460,366.37 | |
| Other capital reserve | 48,043,091.40 | 48,043,091.40 | ||
| Total | 2,806,493,904.30 | 990,446.53 | 2,805,503,457.77 |
This year's decrease is the difference between the consideration paid by Sichuan Changhong Air ConditioningCo., Ltd., a subsidiary, to Hongyuan Dineng Heat Pump Technology Co., Ltd. and the net asset value it should beentitled to when it is transferred.
44. Other comprehensive income
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1 ,2023 to December 31, 2023（Unless other wise specified, RMB for record in the statement)
| Item | Balance at year-begin | Current Year | Balance at year-end | ||||
| Account before income tax in Current Year | 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 | -20,881,462.63 | 433,908.69 | 177,100.58 | 256,808.11 | -20,704,362.05 | ||
| Total | -20,881,462.63 | 433,908.69 | 177,100.58 | 256,808.11 | -20,704,362.05 | ||
45.Special reserves
| Item | Amount at year-begin | Increase this year | Decrease this year | Amount at year-end |
| Safety production costs | 2,467,205.78 | 31,277,872.27 | 22,498,266.14 | 11,246,811.91 |
| Total | 2,467,205.78 | 31,277,872.27 | 22,498,266.14 | 11,246,811.91 |
Note: This year's increase refers to the work safety expenses accrued according to the notice issued by theMinistry of Finance on November 21, 2022 on printing and distributing the Administrative Measures for theExtraction and Use of Work Safety Expenses of Enterprises (CZ [2022] No.136).
46. Surplus reserves
| Item | Amount at year-begin | Increase this year | Decrease this year | Amount at year-end |
| Statutory surplus reserve | 325,610,989.32 | 35,834,503.34 | 361,445,492.66 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1 ,2023 to December 31, 2023（Unless other wise specified, RMB for record in the statement)
| Item | Amount at year-begin | Increase this year | Decrease this year | Amount at year-end |
| Discretionary surplus reserve | 115,607,702.16 | 115,607,702.16 | ||
| Total | 441,218,691.48 | 35,834,503.34 | 477,053,194.82 |
47. Retained profit
| Item | Current Year | Last Year |
| Prior year-end balance | 909,082,037.66 | 734,129,724.00 |
| Add: adjustment from undistributed profit at year-begin | 167,328.13 | |
| Including: retroactive adjustment by Accounting Standards for Business Enterprise | ||
| change of accounting policy | 167,328.13 | |
| Correction of former material error | ||
| Change of combination scope under common control | ||
| Balance at year-begin | 909,249,365.79 | 734,129,724.00 |
| Add: net profit attributable to shareholders of parent company for this year | 741,038,108.54 | 244,538,734.49 |
| Less: withdraw of statutory surplus reserve | 35,834,503.34 | 18,090,235.08 |
| withdraw of discretionary surplus reserve | ||
| Withdraw of general risk provision | ||
| Dividend payable for ordinary shares | 92,693,134.35 | 51,496,185.75 |
| Dividend of ordinary shares transferred to share capital | ||
| Balance at year-end | 1,521,759,836.64 | 909,082,037.66 |
48. Operation income and operation cost
(1) Operation income and operation cost
| Item | Current Year | Last Year | ||
| Income | Cost | Income | Cost | |
| Main business | 24,022,148,584.59 | 20,725,758,770.77 | 20,037,625,297.52 | 17,325,069,941.59 |
| Other business | 225,530,385.97 | 140,797,026.96 | 177,594,894.68 | 119,460,293.73 |
| Total | 24,247,678,970.56 | 20,866,555,797.73 | 20,215,220,192.20 | 17,444,530,235.32 |
(2)The decomposition information of operation income and operation cost
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1 ,2023 to December 31, 2023（Unless other wise specified, RMB for record in the statement)
| Type | Current Year | Last Year | ||
| Income | Cost | Income | Cost | |
| Product | ||||
| Including：Refrigerator, Freezer | 9,088,215,517.67 | 7,356,737,998.45 | 7,664,575,851.66 | 6,346,869,532.77 |
| Air-conditioning | 11,566,440,523.53 | 10,531,949,090.31 | 9,781,896,262.72 | 8,770,265,668.68 |
| Washing machine | 1,329,017,674.88 | 1,088,175,149.78 | 753,549,855.38 | 607,693,261.63 |
| Small household appliances and kitchen and bathroom | 1,849,440,139.12 | 1,616,157,130.27 | 1,605,989,880.27 | 1,408,047,190.15 |
| Other | 189,034,729.39 | 132,739,401.96 | 231,613,447.49 | 192,194,288.36 |
| Total | 225,530,385.97 | 140,797,026.96 | 177,594,894.68 | 119,460,293.73 |
| Area | ||||
| Domestic | 16,662,953,598.39 | 14,285,021,891.36 | 15,038,808,862.28 | 12,912,826,550.40 |
| Overseas | 7,584,725,372.17 | 6,581,533,906.37 | 5,176,411,329.92 | 4,531,703,684.92 |
| Total | 24,247,678,970.56 | 20,866,555,797.73 | 20,215,220,192.20 | 17,444,530,235.32 |
（3）Information related to performance obligations
| Item | Time to perform performance obligations | Material payment terms | Nature of the goods that the Company promises to transfer | Main responsible person or not | Amount expected to be refunded to customers undertaken by the Company | Types of quality assurance provided by the Company and related obligations |
| Income from sales of goods | When the customer obtains the control right of relevant commodities | Advance payment or payment collected according to credit period | Goods | Yes | No | Product quality assurance |
| Income from providing services | When customers obtain related services | Advance payment or payment collected according to credit period | Service | Yes | No |
(4)Information related to the transaction price allocated to the remaining performance obligationsAt the end of this year, the income corresponding to the performance obligations that have been signed but not yetfulfilled or not yet fully fulfilled is RMB 146,656,929.43, of which RMB 71,158,765.31 is expected to be
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1 ,2023 to December 31, 2023（Unless other wise specified, RMB for record in the statement)
recognized in 2024, RMB 44,426,066.33 in 2025 and RMB 31,072,097.79 in 2026.
49. Business tax and extra charges
| Item | Current Year | Last Year |
| Treatment fund for abandon electrics & electronics | 83,954,161.00 | 71,372,020.99 |
| City construction tax | 30,495,241.79 | 19,846,779.61 |
| Extra charge for education and local education surcharge | 23,205,904.33 | 14,548,311.46 |
| Real estate tax | 21,776,071.72 | 20,864,349.97 |
| Stamp duty | 20,180,028.35 | 16,752,387.61 |
| Land use tax | 7,842,009.24 | 7,416,201.59 |
| Water fund | 7,621,811.71 | 7,714,862.00 |
| Other | 20,049.33 | 14,546.06 |
| Total | 195,095,277.47 | 158,529,459.29 |
50. Sales expense
| Item | Current Year | Last Year |
| Salary, extra charges and labor service expenses | 651,978,914.10 | 615,364,927.31 |
| Market support expenses | 299,976,638.54 | 286,466,250.64 |
| National three guarantees expense | 180,682,812.32 | 203,466,003.55 |
| Shipping and Installation expense | 170,138,310.70 | 120,722,067.28 |
| Storage lease expenses | 99,071,460.40 | 75,019,986.16 |
| Insurance | 34,456,542.89 | 14,913,058.66 |
| Travelling expenses | 28,183,664.81 | 19,660,517.01 |
| Business activity expenses | 16,817,763.84 | 14,837,137.30 |
| Service | 16,695,232.90 | 10,978,315.77 |
| Vehicle expenses | 13,438,130.42 | 14,012,267.21 |
| Depreciation expenses | 8,123,955.41 | 8,478,387.85 |
| Advertising expenses | 6,372,451.62 | 2,981,861.74 |
| Meeting organization expenses | 2,064,895.82 | 1,570,396.34 |
| House-lease expenses | 2,511,983.50 | 2,977,765.70 |
| Other expenses | 40,973,660.36 | 37,426,048.95 |
| Total | 1,571,486,417.63 | 1,428,874,991.47 |
51. Administration expense
| Item | Current Year | Last Year |
| Salary and social insurance etc. | 233,339,461.44 | 226,027,033.59 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1 ,2023 to December 31, 2023（Unless other wise specified, RMB for record in the statement)
| Item | Current Year | Last Year |
| Depreciation | 22,633,551.78 | 22,139,475.42 |
| Amortized intangible assets | 17,934,318.50 | 18,097,815.58 |
| Software use | 11,618,336.70 | 9,031,826.08 |
| Water and electricity fee | 6,418,796.52 | 6,326,879.79 |
| Business activities fee | 6,202,767.07 | 4,538,295.97 |
| Property insurance | 6,081,059.31 | 7,095,645.48 |
| Safety in production | 4,936,056.08 | |
| Domestic travelling fee | 3,868,355.25 | 2,808,407.52 |
| Board fees | 1,799,460.97 | 2,816,281.49 |
| Office fee | 1,479,151.05 | 1,589,370.87 |
| Inspection and authentication fee | 994,648.51 | 738,557.52 |
| Other expenses | 43,828,831.31 | 57,376,883.06 |
| Total | 361,134,794.49 | 358,586,472.37 |
52. R&D expenses
| Item | Current Year | Last Year |
| Salary and social insurance etc. | 288,740,055.61 | 237,572,628.90 |
| Amortized intangible assets | 128,124,567.42 | 126,373,792.68 |
| Trial fee of R&D | 51,097,363.34 | 72,478,568.76 |
| Cost of mould | 27,618,399.05 | 26,976,366.44 |
| Technical development cost | 25,289,565.25 | 27,806,672.78 |
| Depreciation | 19,699,982.53 | 19,226,603.19 |
| Inspection and authentication fee | 17,003,613.90 | 14,858,218.53 |
| Domestic travel expenses | 3,481,605.92 | 1,657,904.73 |
| Other expenses | 35,865,338.24 | 33,432,791.48 |
| Total | 596,920,491.26 | 560,383,547.49 |
53. Financial expenses
| Item | Current Year | Last Year |
| Interest expenditure | 30,088,976.40 | 30,470,512.88 |
| Less: Interest income | 191,805,963.97 | 159,034,499.30 |
| Add: exchange loss | 54,709,775.56 | 88,349,559.02 |
| Handling fee expenditure | 13,550,845.06 | 12,041,091.12 |
| Discount expenditure | -27,106,971.67 | -29,168,764.27 |
| Interest expense on lease liability | 1,819,942.13 | 2,127,420.51 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1 ,2023 to December 31, 2023（Unless other wise specified, RMB for record in the statement)
| Item | Current Year | Last Year |
| Total | -118,743,396.49 | -55,214,680.04 |
54. Other income
| Item | Current Period | Last Period |
| Advanced manufacturing value-added tax deduction | 56,552,366.70 | |
| The deferred income is transferred | 30,780,817.58 | 28,913,326.92 |
| Enterprise support funds | 8,719,711.00 | 12,463,661.00 |
| Financial awards | 26,985,794.09 | 33,430,854.69 |
| Immediate VAT refund after collection | 9,415,201.81 | 15,709,711.47 |
| Other | 2,121,570.46 | 1,723,142.63 |
| Export credit insurance subsidy | 2,892,195.29 | 3,415,565.07 |
| Stable job subsidy | 2,427,836.46 | 4,920,730.76 |
| Foregn economic and trade developmnet promotion funds | 4,884,590.00 | 791,337.43 |
| Other tax returns | 1,104,918.88 | 896,261.56 |
| Talent incentives and technologycal transformation subsidies | 723,700.00 | 292,000.00 |
| Total | 146,608,702.27 | 102,556,591.53 |
55. Investment income
| Item | Current Year | Last Year |
| Long-term equity investment income by equity method | 19,133,884.40 | 20,440,095.97 |
| Disposition of the investment income generated by the long-term equity investment | 22,760.28 | |
| Investment income obtained from the disposal of trading financial assets | -27,576,564.08 | 6,873,207.97 |
| Income from financial products | 6,357,755.52 | 5,066,526.99 |
| Investment income of other non-current financial assets during holding period | -22,489,932.70 | -24,385,552.13 |
| The termination of income recognition for financial assets measured by amortized cost | 20,057,997.72 | 14,763,930.55 |
| Interest income from debt investment during the holding period | 12,932,690.90 | 10,260,629.45 |
| Total | 8,438,592.04 | 33,018,838.80 |
56. Changes in fair value gains
| Item | Current Period | Last Period |
| Trading financial assets | -18,424,141.04 | 39,663,502.48 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1 ,2023 to December 31, 2023（Unless other wise specified, RMB for record in the statement)
| Item | Current Period | Last Period |
| Including :Income of fair value changes from derivative financial instruments | -18,424,141.04 | 39,663,502.48 |
| Trading financial liability | 9,732,511.92 | -29,657,252.37 |
| Including: Income of fair value changes from derivative financial instruments | 9,732,511.92 | -29,657,252.37 |
| Other non-current financial assets | 16,256,733.17 | 14,131,251.16 |
| Total | 7,565,104.05 | 24,137,501.27 |
57. Credit impairment loss
| Item | Current Year | Last Year |
| Account receivable bad debt loss | -81,543,127.20 | -162,588,905.74 |
| Other account receivable bad debt loss | -78,256.93 | -1,857,860.25 |
| Total | -81,621,384.13 | -164,446,765.99 |
58. Assets impairment loss
| Item | Current Year | Last Year |
| Loss on inventory valuation | -36,433,848.76 | -37,286,366.52 |
| Impairment loss on intangible assets | -18,200,119.46 | -17,091,365.68 |
| Impairment loss on fixed assets | -1,347,703.96 | |
| Impairment loss on contractual assets | -500,429.38 | -770,687.90 |
| Total | -55,134,397.60 | -56,496,124.06 |
59. Income from assets disposal
| Item | Current Period | Last Period |
| Income from non-current assets disposal | 1,336,229.47 | 27,602,023.18 |
| Including: income classify to assets ready for sale | ||
| income not classify as to assets ready for sale | 1,336,229.47 | 27,602,023.18 |
| Including: Income from fixed assets disposal | 1,262,436.25 | 15,371,880.61 |
| Income from intangible assets disposal | 12,230,142.57 | |
| Income from the disposal of the right to use the assets | 73,793.22 | |
| Total | 1,336,229.47 | 27,602,023.18 |
60. Non-operation revenue
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1 ,2023 to December 31, 2023（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 |
| Income of penalty | 6,025,864.71 | 1,731,499.87 | 6,025,864.71 |
| other | 8,634,718.46 | 7,517,843.40 | 8,634,718.46 |
| Total | 14,660,583.17 | 9,249,343.27 | 14,660,583.17 |
61. Non-operating expenditure
| Item | Current Period | Last Period | Amount reckoned into non-recurring gains/losses in Current Period |
| Non-current asset retirement losses | 5,218,522.66 | 1,467,133.15 | 5,218,522.66 |
| Public welfare donation expenditure | 1,106,759.24 | 1,611,780.39 | 1,106,759.24 |
| Penalty and late fee | 16,611.86 | 724,538.98 | 16,611.86 |
| Other | 1,390,889.55 | 4,684,312.46 | 1,390,889.55 |
| Total | 7,732,783.31 | 8,487,764.98 | 7,732,783.31 |
62. Income tax expenses
| Item | Current Year | Last Year |
| Current income tax | 32,617,426.64 | 15,647,487.73 |
| Deferred income Tax | 3,530,163.62 | -6,082,140.92 |
| Total | 36,147,590.26 | 9,565,346.81 |
63. Other comprehensive income
Found more in 44. Other comprehensive income in V
64. Items of cash flow statement
(1) Cash related to business activities
1) Cash received from other activities relating to operation
| Item | Current Year | Last Year |
| Collection of restriction fund | 80,505,851.57 | |
| Government subsidy and rewards | 53,964,201.06 | 72,305,923.02 |
| Cash deposit, deposit | 37,414,693.10 | 28,044,590.50 |
| Receive compensation | 2,526,647.13 | 21,715,660.93 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1 ,2023 to December 31, 2023（Unless other wise specified, RMB for record in the statement)
| Item | Current Year | Last Year |
| Rental income | 6,783,387.55 | 6,448,934.35 |
| Other | 9,262,930.96 | 9,902,572.90 |
| Total | 109,951,859.80 | 218,923,533.27 |
2) Cash paid for other activities relating to operation
| Item | Current Year | Last Year |
| Operating out of cash expenses | 695,985,203.09 | 603,739,218.72 |
| Petty cash, deposit, Cash deposit | 64,908,861.57 | 52,116,545.02 |
| Total | 760,894,064.66 | 655,855,763.74 |
(2) Cash related to Investment activities
1) Important cash received related to investment activities
| Item | Current Period | Last Period |
| Structural deposits | 1,120,000,000.00 | 600,000,000.00 |
| Large deposit certificate | 170,000,000.00 | 320,000,000.00 |
| Total | 1,290,000,000.00 | 920,000,000.00 |
2)Important cash payable related to investment activities
| Item | Current Period | Last Period |
| Structural deposits | 1,120,000,000.00 | 600,000,000.00 |
| Large deposit certificate | 360,000,000.00 | 660,000,000.00 |
| Total | 1,480,000,000.00 | 1,260,000,000.00 |
3) Cash received from other activities relating to investment
| Item | Current Period | Last Period |
| Interest income arising from bank savings | 188,869,688.96 | 161,501,486.59 |
| Cash deposit | 1,194,923.87 | 391,416.52 |
| Income of forward exchange settlement | 20,632.41 | |
| Other | 190,064,612.83 | 161,913,535.52 |
| Total |
4) Cash paid for other activities relating to investment
| Item | Current Period | Last Period |
| Loses of forward exchange settlement | 115,756,169.35 | 135,747,164.72 |
| Bid bond refund | 500,000.00 | |
| Total | 116,256,169.35 | 135,747,164.72 |
( 3) Cash related to financing activities
1) Cash received from other activities relating to financing
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1 ,2023 to December 31, 2023（Unless other wise specified, RMB for record in the statement)
| Item | Current Year | Last Year |
| Recover restricted funds | 351,333,854.83 | |
| Meiling series (internal) bill discounting fundraising | 19,497,591.35 | 23,536,567.33 |
| Total | 370,831,446.18 | 23,536,567.33 |
2) Cash paid for other activities relating to financing
| Item | Current Year | Last Year |
| Turn into limited funds | 71,212,010.57 | 713,173,457.92 |
| Distribusigned to shareholders at the time of cancellation | 22,652,073.83 | |
| Meiling series (internal) bill discounting fundraising | 8,257,294.29 | 14,747,852.83 |
| Lease liability principal and interest | 9,788,959.46 | 13,924,674.35 |
| Service fees of financing intermediary agencies | 5,205,286.50 | |
| Payment for B share repurchase | 737,262.35 | |
| Financing lease | 175,323.88 | |
| Intermediary service fee | 65,600.34 | 36,327.91 |
| Total | 89,323,864.66 | 770,652,259.57 |
3) Changes in liabilities arising from fund-raising activities
| Item | Amount at year-begin | Increase this year | Decrease this year | Amount at year-end | ||
| Cash changes | Non Cash changes | Cash changes | Non Cash changes | |||
| Short-term Loans | 674,143,916.67 | 1,923,365,052.15 | 6,301,630.00 | 1,469,708,179.79 | 1,134,102,419.03 | |
| Long-term loans | 148,000,000.00 | 40,000,000.00 | 108,000,000.00 | |||
| Lease liabilities | 28,190,817.78 | 21,994,649.75 | 6,697,174.83 | 43,488,292.70 | ||
| Lease liabilities due within 1 year | 10,075,610.19 | 8,667,439.78 | 9,788,959.46 | 303,447.60 | 8,650,642.91 | |
| Long-term due within 1 year | 20,211,488.89 | 46,832,440.27 | 26,871,773.60 | 40,172,155.56 | ||
| Other payable-Dividend payable | 4,978,994.16 | 93,176,662.27 | 92,771,248.99 | 5,384,407.44 | ||
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1 ,2023 to December 31, 2023（Unless other wise specified, RMB for record in the statement)
| Item | Amount at year-begin | Increase this year | Decrease this year | Amount at year-end | ||
| Cash changes | Non Cash changes | Cash changes | Non Cash changes | |||
| Total | 885,600,827.69 | 1,923,365,052.15 | 176,972,822.07 | 1,599,140,161.84 | 47,000,622.43 | 1,339,797,917.64 |
（4）Statement of cash flow in net amount
| Item | Relevant facts | Basis for adopting net presentation | Financial impact |
| Forward foreign exchange delivery | As a legal entity, the Company reports the gains or losses of foreign exchange contract delivery to the receipt of other cash related to investment activities and the payment of other cash related to investment activities | The reported information is more intuitive | No |
| Restricted funds | As a legal entity, the Company reports the current year's change of restricted funds to the receipt of other cash related to fund-raising activities and the payment of other cash related to fund-raising activities | Rolling reflection | No |
| Meiling (internal) notes discount fund-raising amount | As a legal entity, the Company reclassifies the current year's change in Meiling (internal) notes discount undue, from cash received from sales of goods, service provision/cash paid from purchase of goods, and receipt of services to other received cash related to fund-raising activities/other paid cash related to fund-raising activities | Rolling reflection | No |
（5）It does not involve the current cash receipts and payments, but affects the financial situation of theenterprise or may affect the cash flow of the enterprise in the future
| Item | Amount incurred this year |
| Notes endorsement transfer | 640,130,128.86 |
| Total | 640,130,128.86 |
65.Supplementary of the consolidated cash flow statement
（1）Supplementary of cash flow statement
| Item | Current Period | Last Period |
| 1. Net profit is adjusted to cash flow of operation activities: | 773,202,644.17 | 277,098,462.51 |
| Net profit | 55,134,397.60 | 11,726,938.40 |
| Credit impairment loss | 81,621,384.13 | 164,446,765.99 |
| Add: provision for depreciation of assets | 136,755,781.73 | 176,173,704.39 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1 ,2023 to December 31, 2023（Unless other wise specified, RMB for record in the statement)
| Item | Current Period | Last Period |
| Depreciation of fixed assets, consumption of oil gas assets and depreciation of productive biological assets | 230,677,716.05 | 223,767,338.55 |
| Amortization of intangible assets | 148,644,583.21 | 151,246,185.43 |
| Depreciation of right-of-use assets | 8,872,309.05 | 12,973,556.19 |
| Loss from disposal of fixed assets, intangible assets and other long term assets (gain is listed with “-”) | -1,336,229.47 | -27,602,023.18 |
| Loss from discarding fixed assets as useless (gain is listed with “-”) | 5,081,404.15 | 1,001,047.96 |
| Loss from change of fair value (gain is listed with “-”) | -7,565,104.05 | -24,137,501.27 |
| Financial expense (gain is listed with “-”) | -105,187,269.88 | -38,087,006.89 |
| Investment loss (gain is listed with “-”) | -8,438,592.04 | -33,018,838.80 |
| Decrease of deferred income tax assets (increase is listed with “-”) | -774,799.73 | -9,142,184.15 |
| Increase of deferred income tax liabilities (decrease is listed with “-”) | 4,304,963.35 | 3,080,311.85 |
| Decrease of inventories (increase is listed with “-”) | -322,601,024.21 | -347,146,382.60 |
| Decrease of operational accounts receivable (increase is listed with “-”) | -788,860,958.90 | 343,604,791.45 |
| Increase of operational accounts receivable (decrease is listed with “-”) | 2,009,567,881.61 | 674,838,435.05 |
| Other | 80,505,851.57 | |
| Net cash flow arising from operation activities | 2,082,343,305.04 | 1,465,155,748.06 |
| 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 | 8,391,128,635.87 | 6,113,222,069.76 |
| Less: Opening balance of cash | 6,113,222,069.76 | 5,840,194,931.57 |
| Add: Balance at period-end of cash equivalents | ||
| Less: Opening balance of cash equivalents | ||
| Net increase in cash and cash equivalents | 2,277,906,566.11 | 273,027,138.19 |
(2) No net cash paid for subsidiary obtained in Current Period
(3) No net cash received from subsidiary disposal in Current Period
(4) Cash and cash equivalent
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1 ,2023 to December 31, 2023（Unless other wise specified, RMB for record in the statement)
| Item | Balance at year-end | Balance at year-begin |
| Cash | 8,391,128,635.87 | 6,113,222,069.76 |
| Including: cash in stock | 12,727.56 | 21,243.42 |
| Bank deposits available for payment at any time. | 8,387,387,613.83 | 6,113,166,932.47 |
| Other monetary fund available for payment at any time | 3,728,294.48 | 33,893.87 |
| Cash equivalents | ||
| Including: bond investment due within 3 months | ||
| Balance of cash and cash equivalents at year-end | 8,391,128,635.87 | 6,113,222,069.76 |
| Including: using the restricted cash and cash equivalents of the parent company or subsidiary of the group |
（5）This year, there is no limited scope of use but it is still listed in cash and cash equivalents
（6）Monetary funds that are not cash and cash equivalents
| Item | This year's amount | Last year's amount | Reasons other than cash and cash equivalents |
| Judicial freezing of funds due to contract disputes | 27,715,825.21 | 6,093,218.00 | Limited use |
| Guarantee and acceptance bill deposit | 410,939,463.45 | 712,683,914.92 | Limited use |
| Interest receivable | 10,901,601.18 | 7,422,576.45 | Interest accrual |
| Total | 449,556,889.84 | 726,199,709.37 | — |
66. Foreign currency
(1) Foreign currency
| Item | Ending foreign currency balance | Exchange rate | Ending RMB converted balance |
| Monetary fund | — | — | 127,204,596.01 |
| Including: USD | 2,869,080.48 | 7.0827 | 20,320,836.32 |
| Euro | 4,329,141.62 | 7.8592 | 34,023,589.82 |
| PKR | 758,800,389.64 | 0.0251 | 19,045,889.78 |
| Won | 1,255,283,246.00 | 0.005514 | 6,921,631.82 |
| IDR | 20,769,792,551.00 | 0.000461 | 9,574,874.37 |
| PHP | 15,100,323.00 | 0.1279 | 1,931,331.31 |
| AUD | 7,298,581.51 | 4.8484 | 35,386,442.59 |
| Account receivable | — | — | 1,067,169,191.65 |
| Including: USD | 116,294,473.22 | 7.0827 | 823,678,865.48 |
| Euro | 9,957,190.73 | 7.8592 | 78,255,553.39 |
| PKR | 410,308,696.41 | 0.0251 | 10,298,748.28 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1 ,2023 to December 31, 2023（Unless other wise specified, RMB for record in the statement)
| Item | Ending foreign currency balance | Exchange rate | Ending RMB converted balance |
| IDR | 92,408,396,216.76 | 0.000461 | 42,600,270.66 |
| AUD | 19,577,081.00 | 4.8484 | 94,917,519.52 |
| AUD | 29,205,109.07 | 0.1279 | 3,735,333.45 |
| Won | 2,481,483,655.00 | 0.005514 | 13,682,900.87 |
| Other account receivable | — | — | 346,351.02 |
| Including: PKR | 5,378,768.53 | 0.0251 | 135,007.09 |
| IDR | 321,790,412.15 | 0.000461 | 148,345.38 |
| PHP | 492,561.00 | 0.1279 | 62,998.55 |
| Account payable | — | — | 31,543,031.60 |
| Including: USD | 132,118.93 | 7.0827 | 935,758.75 |
| Euro | 13,419.32 | 7.8592 | 105,465.12 |
| PKR | 525,713,593.23 | 0.0251 | 13,195,411.19 |
| IDR | 17,884,398,462.83 | 0.000461 | 8,244,707.69 |
| PHP | 70,849,795.53 | 0.1279 | 9,061,688.85 |
| Other account payable | — | — | 14,949,132.09 |
| Including: PKR | 281,823,229.08 | 0.0251 | 7,073,763.05 |
| IDR | 16,602,444,208.24 | 0.000461 | 7,653,726.78 |
| PHP | 1,732,934.00 | 0.1279 | 221,642.26 |
(2) Foreign operational entity
The foreign operational entity of the Company was Changhong Ruba Trading Company (Private) Limited, mainlyoperates in Lahore, Pakistan; Recording currency is Pakistan Rupi. CHANGHONG MEILING ELECTRICINDONESIA, PT, mainly operates in Jakarta; recording currency is IDR. CH-Meiling International (Philippines)Inc, mainly operates in Philippines; Recording currency is PHP.
67.Lease
（1）The Company as lessee
| Item | Amount incurred this year | Amount incurred last year |
| Interest expense of lease liabilities | 1,819,942.13 | 2,127,420.51 |
| Short-term lease expenses with simplified treatment included in current profits and losses | 7,381,795.96 | 2,605,800.01 |
（2）The Company as lessor
1）Operating lease of the Company as lessor
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1 ,2023 to December 31, 2023（Unless other wise specified, RMB for record in the statement)
| Item | Lease income | In which: income related to variable lease payment not included in lease receipts |
| House building | 33,393,088.86 | |
| Equipment | 3,266,344.81 | |
| Total | 36,659,433.67 |
2）Financial lease of the Company as lessor: N/A.
（3）The Company does not recognize the profit and loss of financial lease sales as a manufacturer or distributor.
VI.R&D expenditure
| Item | Amount incurred this year | Amount incurred last year |
| Salary, social security, etc | 332,685,385.50 | 289,045,189.33 |
| Depreciation expenses | 20,217,498.97 | 19,595,950.42 |
| Other expenses | 36,033,763.45 | 33,999,384.05 |
| Domestic travel expenses | 3,760,534.31 | 1,719,347.59 |
| Inspection and certification fees | 19,974,458.24 | 19,809,891.42 |
| R&D and trial production costs | 83,379,401.74 | 90,075,741.11 |
| Amortization of intangible assets | 128,124,567.42 | 126,373,792.68 |
| Mold costs | 93,918,099.78 | 86,300,051.96 |
| technological development expense | 26,648,055.81 | 29,217,316.19 |
| Total | 744,741,765.22 | 696,136,664.75 |
| Among them: Expensed R&D expenses | 596,920,491.26 | 560,383,547.49 |
| Capitalized R&D expenditure | 147,821,273.96 | 135,753,117.26 |
1.R&D projects eligible for capitalization
| Item | Year-beginning balance | Increased amount this year | Decreased amount this year | Year-end balance | ||
| Internal development expenditure | Other increase | Recognized as intangible assets | Transfer to current profits and losses | |||
| Development of ice washing technology | 60,386,906.45 | 58,420,870.74 | 59,672,788.12 | 2,132,644.84 | 59,134,989.07 | |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1 ,2023 to December 31, 2023（Unless other wise specified, RMB for record in the statement)
| Item | Year-beginning balance | Increased amount this year | Decreased amount this year | Year-end balance | ||
| Internal development expenditure | Other increase | Recognized as intangible assets | Transfer to current profits and losses | |||
| Development of air conditioning technology | 41,761,484.12 | 89,400,403.22 | 93,119,341.07 | 86,880.59 | 38,042,546.27 | |
| Total | 102,148,390.57 | 147,821273.96 | 152,792,129.19 | 2,219,525.43 | 97,177,535.34 | |
(1)Material capitalized R&D projects: N/A.
(2)There is no provision for impairment of development expenditure this year.
VII. Changes of consolidation rage
1. Enterprise combined are not under the same control:N/A
2. Enterprise combined under the same control:N/Al
3. Reversed takeover: N/Al
4. Disposal of subsidiary: N/A
5.Other change
5.1 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 | 100.00 | Liquidation & cancellation | November 11,2023 | Completed the liquidation & cancellation |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1 ,2023 to December 31, 2023（Unless other wise specified, RMB for record in the statement)
| 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 |
| Wuhan Meizhirong Electric Appliances Marketing Co., Ltd | 100.00 | Liquidation & cancellation | March 2023 | Completed the liquidation & cancellation |
VIII. Equity in other entity
1. Equity in subsidiary
(1) Composition of the enterprise group
| Subsidiary | Registered capital(RMB0'000) | Main office place | Registration place | Business nature | Shareholding ratio（%) | Acquire by | |
| Directly | Indirectly | ||||||
| Zhongke Meiling Cryogenic Technology Co., Ltd | 9,673.09 | Hefei | Hefei | Manufacturing and sales | 47.4512 | Investment establishment | |
| Sichuan Hongmei Intelligent Technology Co., Ltd. | 500.00 | Mianyang | Mianyang | Software development | 100 | Investment establishment | |
| Mianyang Meiling Refrigeration Co., Ltd. | 10,000.00 | Mianyang | Mianyang | Manufacturing and sales | 95 | 5 | Investment establishment |
| Jiangxi Meiling Electric Appliance Co., Ltd | 5,000.00 | Jingdezhen | Jingdezhen | Manufacturing and sales | 98.75 | 1.25 | Investment |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1 ,2023 to December 31, 2023（Unless other wise specified, RMB for record in the statement)
| Subsidiary | Registered capital(RMB0'000) | Main office place | Registration place | Business nature | Shareholding ratio（%) | Acquire by | |
| Directly | Indirectly | ||||||
| establishment | |||||||
| Hefei Meiling Wulian Technology Co., Ltd5） | 1,000.00 | Hefei | Hefei | Software development | 100 | Investment establishment | |
| Hefei Meiling Electric Appliances Marketing Co., Ltd6) | 2,428.68 | Hefei | Hefei | Sales | 100 | Enterprise combined under the same control | |
| Changhong Meiling Ridian Technology Co., Ltd | 8,300.00 | Zhongshan | Zhongshan | Manufacturing and sales | 99.0361 | Enterprise combined under the same control | |
| CHANGHONG MEILING ELECTRIC INDONESIA,PT8） | 4,027.20 | Jakapta | Jakapta | Sales | 100 | Investment establishment | |
| ChanghongRubaTradingCompany（Private）Limited 9) | 8,308.98 | Pakistan | Pakistan | Sales | 60 | Investment establishment | |
| Sichuan Changhong Air-conditioner Co., Ltd | 85,000.00 | Mianyang | Mianyang | Manufacturing and sales | 100 | Enterprise combined under the same | |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1 ,2023 to December 31, 2023（Unless other wise specified, RMB for record in the statement)
| Subsidiary | Registered capital(RMB0'000) | Main office place | Registration place | Business nature | Shareholding ratio（%) | Acquire by | |
| Directly | Indirectly | ||||||
| control | |||||||
| Zhongshan Changhong Electric Co., Ltd | 33,400.00 | Zhongshan | Zhongshan | Manufacturing and sales | 90 | 10 | Enterprise combined under the same control |
| Hefei Meiling Group Holdings Limited | 8,000.00 | Hefei | Hefei | Manufacturing and sales | 100 | Enterprise combined not under the same control | |
| Meiling Equator Household Appliance (Hefei) Co., Ltd | 2,479.32 | Hefei | Hefei | Manufacturing and sales | 100 | Enterprise combined not under the same control | |
| Hefei Equator Appliance Co., Ltd | 1,200.00 | Hefei | Hefei | Manufacturing and sales | 100 | Enterprise combined not under the same control | |
| Ground Energy Heat Pump Tech. Co., Ltd. | 5,000.00 | Mianyang | Mianyang | Manufacturing and sales | 85 | Investment establishment | |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1 ,2023 to December 31, 2023（Unless other wise specified, RMB for record in the statement)
| Subsidiary | Registered capital(RMB0'000) | Main office place | Registration place | Business nature | Shareholding ratio（%) | Acquire by | |
| Directly | Indirectly | ||||||
| Ground Energy Heat Pump Tech. (Zhongshan) Co., Ltd. | 4,500.00 | Zhongshan | Zhongshan | Manufacturing and sales | 85 | Investment establishment | |
| Guangzhou Changhong Trading Co., Ltd. | 100.00 | Guangzhou | Guangzhou | Sales | 100 | Investment establishment | |
| Hebei Hongmao Daily Appliance Technology Co., Ltd. | 500.00 | Handan | Handan | Manufacturing and sales | 99.0361 | Investment establishment | |
| Anhui Tuoxing Technology Co., Ltd. | 1,000.00 | Hefei | Hefei | Manufacturing and sales | 47.4512 | Investment establishment | |
| CH-Meiling.International (Philippines) Inc. | 688.91 | Philippines | Philippines | Sales | 100 | Investment establishment | |
| Hefei Changhong Meiling Life Appliances Co., Ltd. | 5,000.00 | Hefei | Hefei | Sales | 70 | Investment establishment | |
| Anhui Ling'an Medical Equipment Co., Ltd | 5,000.00 | Lu'an | Lu'an | Manufacturing and sales | 47.4512 | Investment establishment | |
Note：
1) Zhongke Meiling Cryogenic Technology Co., Ltd. (hereinafter referred to as Zhongke Meiling), thepredecessor of which was Zhongke Meiling Cryogenic Technology Limited Liability Company, was established on29 October 2002 by joint contribution from the Company and Technical Institute of Physics and Chemistry, CAS(“TIPC”), with registered capital of 60 million yuan upon the establishment, among which, the Company madecapital contribution of 42 million yuan (including the assets in specie at the consideration of35,573,719.70 yuan asevaluated by Beijing Zhongzheng Appraisal Co., Ltd. with issuance of the Appraisal Report (ZZPBZ(2002)No.029)and cash contribution of 6,426,280.30 yuan) accounting for 70% of the aforesaid registered capital, and TIPC made
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1 ,2023 to December 31, 2023（Unless other wise specified, RMB for record in the statement)
capital contribution of 18 million yuan with intangible assets of such value (namely the single compressor mixtureindustrial low temperature refrigeration technology) as evaluated by Jingzhongzi Assets Appraisal Co., Ltd. withissuance of the Appraisal Report (ZZPBZ(2002)No.225) accounting for 30% of the aforesaid registered capital. Thepaid-in of the above registered capital has been verified by Huazheng Accounting Firm by issuance of the AssetsVerification Report (HZYZ (2002) No. B157) dated 16 October 2002.In October 2014, according to the relevant provision under the Management Rules on Application of State OwnedAssets by Central Business Organs, TIPC transferred the 30% equity interests held by it in Zhongke MeilingCryogenic Technology Company Limited to its wholly-owned subsidiary Zhongke Xianxing (Beijing) AssetsManagement Co., Ltd (hereinafter referred to as Zhongke Xianxing) which would perform management over theoperating assets of TIPC. Upon consideration 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 TechnologyCompany Limited, pursuant to which, they decided to change the firm type of Zhongke Meiling CryogenicTechnology Company Limited to a joint stock company. Based on the net assets of 96, 431,978.25 yuan as auditedby Xinyong Zhonghe CPA as of 30 June 2015, an aggregate of 65,000,000 shares have been converted at theproportion of 1:0.67, which are to be held by the original shareholders according to their respective entitlement. Incase that the net assets exceed registered capital, the balance shall be recorded in capital reserve. On 28 August2015, Xinyong Zhonghe CPA reviewed the registered capital and paid-in thereof in respect of the stock reform, andissued Assets Verification Report (XYZH/2015CDA40161). The Company registered industrial and commercialinformation 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 yuanper share. The current capital increase was verified by the No.［XYZH/2016CDA40294］capital verification reportissued by ShineWing CPA (special general partnership). After the completion of the issuance, the share capital ofZhongke Meiling 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.,Ltd for year of 2017 was deliberated and approved by 4
thsession extraordinary of shareholders general meeting of2017. Zhongke Meiling offering 490,300 shares to specific investors by way of privately placement, which has 1.72yuan per share in amount. The capital increasement has been verified by the No. ［XYZH/2017CDA40324］capitalverification report issued by ShineWing CPA (special general partnership). After the completion of shares placement,stock of the Company increased to 68,640,300 shares and 66.87% held by the Company.On September 9, 2019, the 10
th
Meeting of the 2
ndBOD and the Fourth Extraordinary Shareholders’ Meetingreviewed and approved the Proposal on the First Stock Issuance Plan of Zhongke Meiling Cryogenic TechnologyCo., Ltd. in 2019 (Revised Version), the number of shares to be issued this time does not exceed 3,907,900 shares(including 3,907,900 shares), the issue price is not less than 2.16 yuan per share, and the raised funds are expected
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1 ,2023 to December 31, 2023（Unless other wise specified, RMB for record in the statement)
to not exceed 8,441,064.00 yuan (including 8,441,064.00 yuan). After the completion of the additional issue, thecompany’s share capital increased to 72,548,200 shares, which was verified by [No. XYZH/2020CDA30002]“Capital Verification Report” issued by Shine Wing Certified Public Accountants (LLP), and the Company’sshareholding ratio was 63.2683%.On September 16, 2022, the Management Committee of China Securities Regulatory Commission issued the Replyon Approving the Registration of Zhongke Meiling Cryogenics Co.,Ltd. to Public Offering of Shares to UnspecifiedQualified Investors (ZJXK [2022] No. 2182), which approved the registration application of Zhongke Meiling toPublic Offering of Shares to Unspecified Qualified Investors. The price of this issue is RMB 16.00/share, the initialnumber of shares issued is 24,182,734, and the actual net fund raised is RMB 364,573,394.95. By September 30,2022, all the above-mentioned raised funds had been received and verified by the Capital Verification Report[XYZH/No. 2022CDAA70693] issued by ShineWing Certified Public Accountants (special general partnership).After the issuance, the share capital of Zhongke Meiling is 96,730,934 shares, and the shareholding ratio of theCompany is 47.4512%.
2) Sichuan Hongmei Intelligent Technology Co., Ltd. (hereinafter referred to as Hongmei Intelligent) wasestablished on Jan. 24, 2014. It is a limited company jointly invested by the Company and Mianyang MeilingRefrigeration Co., Ltd., being approved by the Industrial and Commerce Bureau of Peicheng District, MianyangCity. The company owes registered capital of 5 million yuan, including 4.95 million yuan contributed by ChanghongMeiling Company in cash, accounted for 99% of the registered capital; Mianyang Meiling Refrigeration Co., Ltd.contributed 50000 yuan in cash with 1% of the register capital occupied. The above mentioned register capital havebeen verified by verification report of Chuanjinlai Yanzi No. [2014] B039 issued by Sichuan Jinlai Accounting FirmCo., Ltd. In July 2016, the shares of Hongmei Intelligent, held by the Company has transferred to SichuanChanghong AC Co., Ltd., after transferred, Changhong AC has 99% equity of Hongmei Intelligent, the Companyhas no shares of Hongmei Intelligent directly.In October 2023, Changhong Air Conditioning and Mianyang Meilingtransferred their respective shares to the Company. After the transfer, the Company held 100% shares of HongmeiIntelligent.
3) Mianyang Meiling Refrigeration Co., Ltd. (hereinafter referred to as Mianyang Meiling), a limited liabilitycompany jointly set up by the Company and China-tech Meiling Company, was founded on Mar. 6, 2009. Itsregistered capital and paid-in capital were 50 million yuan upon establishment, of which, the Company invested 45million yuan, accounting for 90% of the registered capital; Zhongke Meiling Company invested 5 million yuan,accounting for 10% of the registered capital. The capital receipt was verified by the verification report [CXKY(2009) No. 008] of Sichuan Xingrui Certified Public Accountants. On 19 January 2011, the Company increase 50million yuan in capital of Mianyang Meiling, of which 95 million yuan invested by the Company, a 95% of totalregister capital while 5 million yuan invested by Zhongke Meiling, a 5% of total capital occupied. The paid-incapital has been verified by Capital Verification Report［XYZH/2010CDA6040］from Chengdu Branch ofShinewing CPA CO., Ltd. In 2011, Zhongke Meiling entered into “Equity Transfer Agreement” with Jiangxi MeilingRefrigeration Co., Ltd. 5 percent equity of Mianyang Meiling held by Zhongke Meiling was transferred to Jiangxi
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1 ,2023 to December 31, 2023（Unless other wise specified, RMB for record in the statement)
Meiling Refrigerator. In September 2013, Jiangxi Meiling Refrigeration was combined by Jiangxi Meiling ElectricAppliance Co., Ltd., than 5 percent equity was transfer to Jiangxi Meiling Electric Appliance.
4) Jiangxi Meiling Electric Appliance Co., Ltd. (hereinafter referred to as Jiangxi Meiling Electric Appliance)was a limited liability company jointly established by the Company and Mianyang Meiling on 23 May 2011.Register capital of the company totally as 50 million yuan, 49.375 million yuan invested by the Company, 98.75%in total register capital while 0.625 million yuan invested by Mianyang Meiling, a 1.25% in total register capitaloccupied. The initial investment 10.50 million yuan was received dated 13 May 2011 with 10 million yuan from theCompany and 0.5 million yuan from Mianyang Meiling. Rest of the capital shall be invested fully within 2 yearsafter the joint ventures established according to capital requirement. The initial investment capital were verified bythe Capital Verification Report [JXKYZi (2011) No. 090] issued from Jingdezhen Xingci CPA Co., Ltd. Secondcapital 39.5 million yuan was fully funded on 28 July 2011, the Company contributed 39.375 million yuan whileMianyang Meiling Company invested 125,000 yuan, the contributions have been verified by the capital verificationreport [Jing Xing Kuai Yan Zi (2011) No.: 134] issued from JDZ Xingci CPA Co., Ltd.
5) Hefei Meiling Wulian Technology Co., Ltd. (hereinafter referred to as Wulian Technology) wasestablished dated 21 January 2019 with registered capital of 10 million yuan, and it is the subsidiary of the Companywith fully-owned establishment. On 19 March 2019 and December 11,2023, paid in capital is 6 million yuan and 4million yuan, The cumulative investment of 10 million yuan, accounting for 100% of its registered capital
6) Hefei Meiling Nonferrous Metal Products Co., Ltd. (hereinafter referred to as Nonferrous Metal) wasthe Sino-foreign joint venture jointly set up by original Meiling Group, Hefei Meiling Copper Co., Ltd. AndSingapore Kim Shin Development Co., Ltd., which have been originally approved by the [WJMWFZZ (1996)No.349] of Foreign Trade and Economic Committee of Anhui Province. Its registered capital was US$ 2.92 millionupon establishment, of which, original Meiling Group invested US$ 1.46 million (monetary capital), accounting 50%of the registered capital, Hefei Meiling Copper Co., Ltd invested US$ 0.584 million (monetary capital of RMB 0.18million and real assets of US$ 0.404 million), accounting 20% of registered capital while Singapore Kim ShinDevelopment Co., Ltd invested US$ 0.876 million (monetary capital), accounting 30% of the registered capital. Theabove 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] fromForeign Trade Economic Cooperation Bureau of Hefei City, 30% equity and 20% equity held by Singapore KimShin 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-venture any more.
7) Changhong Meiling Ridian Technology Co., Ltd. (hereinafter referred to as Ridian Technology) is a limitedliability company invested and established by Sichuan Changhong Electric Co., Ltd. (hereinafter referred to asSichuan Changhong) and Sichuan Changhong Motor Transport Co., Ltd. (hereinafter referred to as ChanghongMotor Transport Company) on May 25, 2016. The registered capital and paid-in capital are 40 million yuan, ofwhich Sichuan Changhong has invested 32 million yuan by monetary capital, accounting for 80% of the registered
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1 ,2023 to December 31, 2023（Unless other wise specified, RMB for record in the statement)
capital; Changhong Motor Transport Company has invested 8 million yuan, accounting for 20% of the registeredcapital. The official receipts of registered capital have been verified by original Sichuan Junhe Accounting Firm[No. JHYZ (2006) 3027]. Ridian Technology increased registered capital of 43 million yuan on January 4, 2007,changing from 40 million yuan to 83 million yuan, for the newly increased 43 million yuan, Sichuan Changhonginvested 1.8 million yuan, Guangdong Xiongfeng Electric Co., Ltd. invested 40 million yuan, and Kou Huamengand other 9 natural person shareholders invested 1.2 million yuan, at the same time, the shareholders' meetingconsidered and agreed to transfer the investment of 8 million yuan of Changhong Motor Transport Company toSichuan Changhong Venture Investment Co., Ltd, the structure of the registered capital after changes was thatSichuan Changhong invested 33.8 million yuan, accounting for 40.72%; Guangdong Xiongfeng Electric Co., Ltd.invested 40 million yuan, accounting for 48.19%; Sichuan Changhong Venture Investment Co., Ltd Invested 8million yuan, accounting for 9.64%; Kou Huameng and other 9 natural person shareholders invested 1.2 millionyuan, accounting for 1.45%. The change of registered capital was verified by Zhongshan Promise Accounting Firm[No. ZCHZ (2007)501010].On February 18, 2009, seven natural person shareholders transferred total 0.76% stock rights to Hu Zhiheng, afterthe transfer, the registered capital of Changhong Ridian was still 83 million yuan, the structure of registered capitalafter changes was that Sichuan Changhong invested 33.8 million yuan, accounting for 40.72%; GuangdongXiongfeng Electric Co., Ltd. invested 40 million yuan, accounting for 48.19%; Sichuan Changhong VentureInvestment Co., Ltd invested 8 million yuan, accounting for 9.64%; Hu Zhiheng and other two natural personshareholders invested 1.2 million yuan, accounting for 1.45%.On October 9, 2014, Changhong Ridian held the shareholders meeting which considered and agreed Kou Huamengto transfer its stock rights of total 250,000 yuan which accounts for 0.301% of the Ridian Technology’s registeredcapital to Sichuan Changhong Venture Investment Co., Ltd at the cost of 317,802 yuan. The other shareholders ofthe Ridian Technology waived the right of pre-emption. On December 11, 2014, Ridian Technology held theshareholders meeting which considered and agreed Guangdong Xiongfeng Electric Co., Ltd. to transfer its stockrights of total 40 million yuan which accounts for 48.19 % of the company's registered capital to Sichuan ChanghongElectric Co., Ltd. at the cost of 43,977,300 yuan. The other shareholders of the Ridian Technology waived the rightof pre-emption. The structure of registered capital after changes was that Sichuan Changhong invested 73.8 millionyuan, accounting for 88.92%; Sichuan Changhong Venture Investment Co., Ltd Invested 8.25 million yuan,accounting for 9.94%; Hu Zhiheng and another natural person shareholder invested 950,000 yuan, accounting for
1.14%.
On 4 January 2016, Sichuan Changhong and Sichuan Changhong Venture Investment Co., Ltd. transferred total
98.855% equity of the Ridian Technology to the Company. After the transfer, the Company directly holds 98.855%stock rights of Ridian Technology.On 7 April 2020, Ridian Technology convened the shareholders’ meeting, and agreed the Wu Chang yuan totransferred total 0.18% equity of the Ridian Technology to the Company. After the transfer, the Company directlyholds 99.0361% stock rights of Ridian Technology.
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1 ,2023 to December 31, 2023（Unless other wise specified, RMB for record in the statement)
8) CHANGHONG MEILING ELECTRIC INDONESIA, PT.(hereinafter referred to as Indonesia Meiling) isa subsidiary established in Indonesia and jointly invested by Zhongshan Changhong and Sichuan Changhong in2016, the company’s registered capital is 6 million US dollars, of which Zhongshan Changhong subscribed and paid
5.88 million US dollars in cash, accounting for 98% of the registered capital, Changhong Air Conditioningsubscribed and paid 120,000 US dollars in cash, accounting for 2% of the registered capital. On 4 July 2017, restsof the 2.94 million US dollars are subscribed by Zhongshan Changhong in line with the agreement.
9) Changhong Ruba Trading Company (Private) Limited (hereinafter referred to as Changhong Ruba) was ajoint venture established by Zhongshan Changhong Appliances Company Limited and RUBA GENERALTRADING FZE Company (“RUBA”) on 5 August 2011 with the approval from Guangdong Development andReform Commission by issuance of the Approval Relating to Joint Construction of a Manufacturing and SellingPlatform Project in Pakistan by Zhongshan Changhong Appliances Company Limited (YFGWZ(2011)958). Theresolution of the second extraordinary shareholders' meeting of Zhongshan Changhong in 2016 passed the "Proposalon the Company's Capital Increase to Changhong Ruba Trading Company (Private) Limited", and agreed that thecompany and UAE RUBA Company jointly increase capital to Changhong Ruba Trading Company(Private)Limited which was invested by both sides in Pakistan at an earlier stage, Zhongshan Changhong invested 3.84million US dollars in this capital increase, and UAE RUBA Company invested 2.56 million US dollars, the sharesheld by both sides remained unchanged. After the capital increase, the company’s registered capital became 12.4million US dollars, of which Zhongshan Changhong Home Appliances Company Limited invested 7.44 million USdollars in cash, shareholding ratio was 60%, UAE RUBA Company invested 4.96 million US dollars in cash, andshareholding ratio was 40%.In 2017, the shareholder meeting of Zhongshan Changhong Electric Co., Ltd. passed the "Proposal on the Company's Increased Investment in Pakistan Refrigerator Project", agreeing that Zhongshan Changhong and the UAE RUBA company will jointly increase the capital of ChanghongRuba. , the shares held by both parties remainunchanged. After the capital increase, the registered capital of ChanghongRuba is US$13,004,923, of which Zhongshan Changhong contributed US$7,802,954 in cash, holding 60% of the shares, and RUBA of the United Arab Emirates contributed US$5,201,969 in cash, holding 40% of the shares.
10) Sichuan Changhong Air Conditioning Co., Ltd. (hereinafter referred to as Changhong Air Conditioner), alimited liability company jointly set up by Sichuan Changhong and Changhong Chuangtou, was founded onNovember 28, 2008. Its registered capital was 200 million yuan upon establishment, of which, Sichuan Changhonginvested 298 million yuan ( 210,088,900 yuan invested by monetary capital while 87,911,100 yuan invested by realmaterial), equivalent to 198 million yuan shares, accounting for 99% of the registered capital; and ChanghongChuangtou invested 3 million yuan, accounting for 1% of the registered capital with equivalent of 2 million yuanshares. The registered capital receipt was verified by the verification report [CGYYZ (2008) No. 177] of SichuanGuang yuan Certified Public Accountants Co., Ltd. and [HLTHYZ (2008) No. 12-006] of Sichuan HenglitaiCertified Public Accountants Co., Ltd. In December 2009, the Company obtained 100% equity of Changhong Air-conditioner by consolidated under the same control. In 2017, the Company increased capital of 650 million yuan to
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1 ,2023 to December 31, 2023（Unless other wise specified, RMB for record in the statement)
Changhong Air Conditioner, after capital increased, registered capital of Sichuan Changhong comes to 850 millionyuan from 200 million yuan, shareholding still counted as 100%.
11) Zhongshan Changhong Electric Co., LTD (hereinafter referred to as Zhongshan Changhong), was theoriginal Guangdong Changhong Electric Co., Ltd., and is a limited liability company jointly set up by SichuanChanghong and China Minmetals on May 22, 2001. Its registered capital was RMB 80 million upon establishment,of which, Sichuan Changhong invested 72 million yuan, including 69.3 million yuan biding for the estate/non-estatefrom original Zhongshan Sanrong Air-conditioner Co., Ltd. And its patent use-right of 2.7 million yuan, accountingfor 90% of the registered capital; Chine Minmetals invested 8 million yuan in monetary capital accounting 10% ofthe registered capital. The Company changed its name originally from Guangdong Changhong Electric Co., Ltd inJuly 2003. In December 2009, the Company obtained 90% equity of Zhongshan Changhong by consolidated undersame control. 10% equity held by China Minmetals has been transferred by Changhong Air-conditioner on April 11,2010. On 25 May 2014, the Company increased 36 million yuan to Zhongshan Changhong, and Changhong ACincreased 4 million yuan. In 2016, according to the overseas development strategy of the Company and thedevelopment and operation needs of the subsidiaries, the Company and the wholly-owned subsidiary ChanghongAir Conditioning have increased capital of 64 million yuan to Zhongshan Changhong according to the existingshareholding ratio, among which the capital increase of the Company was 57.6 million yuan, and the capital increaseof Changhong Air Conditioning was 6.4 million yuan. After the completion of this capital increase, the registeredcapital Zhongshan Changhong shall increase to184 million yuan, the shareholding ratio of the company andChanghong 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 Air Conditioning invested 18.4 millionyuan, accounting for 10% of the registered capital. In March 2020, in accordance with the Company’s overseasdevelopment strategy and the operation and development needs of its subsidiaries, the Company and its wholly-owned subsidiary Changhong Air Conditioning increased capital of 150 million yuan to Zhongshan Changhongaccording 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, theregistered capital of Zhongshan Changhong has increased to 334 million yuan. The Company’s and Changhong’sshareholding ratios 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 33.4million yuan, accounting for 10% of the registered capital.
12) Hefei Meiling Group Holdings Limited (hereinafter referred to as Meiling Group), was the state-ownedcompany originally approved by People’s Government of Hefei Province and established authorized by SASAC ofHefei City. On July 14, 2008, 100% state-owned equity of Meiling Group has freely transferred to Xingtai Holdingby Hefei SASAC. Agreement by the approval of < State-owned property agreement transfer from Meiling Group>[ HGZCQ (2010) No.34] of Hefei SASAC on April 9, 2010, 100% state-owned property of Meiling Group afterpartial assets and liabilities separated transferred to the Company from Xingtai Holding as amount of 113.2 millionyuan. The re-registration of industrial and commercial procedure for Meiling Group after separated partial assets
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1 ,2023 to December 31, 2023（Unless other wise specified, RMB for record in the statement)
liability has finished on July 28, 2010. The new Meiling Group has register capital of 80 million yuan, and has beenverified by the [AD (2010) YZD No. 016] from Anhui Auding CPAs Co., Ltd.
13) Meiling EquatorHousehold Appliance (Hefei) Co., Ltd. (hereinafter referred to as EquatorHouseholdAppliance) was the Sino-foreign joint venture jointly set up by original Meiling Group and EQUATORINVESTMENTS (USA) INC. (EQUATOR for short), which have been approved by the [SWZWFZZ(2004)No.0103] of Approval Certificate of Foreign Enterprise from People’s Government of Anhui Province. Its registeredcapital was US$ 3 million upon establishment, of which, Sino company invested US$ 2.25 million in machineryequipment, accounting 75% of the registered capital while foreign company invested US$ 0.5 million in monetarycapital and US$ 0.25 million in intangible assets, amounting to US$0.75 million, accounting 25% of the registeredcapital. The above mentioned investment verified by the verification report of [WYAYZ (2004) No. 135] fromAnhui Yongan CPAs Co., Ltd. In July 2007, approved by [HWJ (2007) No.136] from Foreign Trade EconomicCooperation Bureau of Hefei City, 25% equity held by EQUATOR transferred to Anhui Meiling Electric Co., Ltd.Totally. The Company’s register capital came into 24,793,200 yuan after transference, and was not the joint-ventureany more. 25% equity owned by Anhui Meiling Electric Co., Ltd has been transferred totally to original MeilingGroup in July 2009.
14) Hefei Equator Appliance Co., Ltd. (hereinafter referred to as Equator Appliance) was jointly set up by originalMeiling Group and Yingkaite Appliance on September 26, 2007. Its register capital was 12 million yuan, among which,original Meiling Group invested 8,670,600 yuan in monetary capital, accounting 72.255% in registered capital;Equator Appliance invested 3,329,400 yuan in the assessment value of intangible assets (land-use right), accounting
27.745% of total registered capital. The investment being verified by [WYAZ (2004) No. 135] from Anhui YonganCPAs Co., Ltd.
15) Hong Yuan Ground Energy Heat Pump Technology Co., Ltd. (hereinafter referred to as Hong Yuan GroundEnergy) was established on 28 August 2015, it is a limited liability company authorized by Administration forIndustry and Commerce of Peicheng District, Mianyang, Sichuan, contributed by Sichuan Changhong AirConditioner Co., Ltd (hereinafter referred to as Changhong Air Conditioner) and Hengyou yuan TechnologyDevelopment Group Co., Ltd. together. Registered capital amounted as 50 million yuan, including 25.5 million yuancontributed by Changhong Air Conditioner in cash, a 51% in total registered capital; Hengyou yuan TechnologyDevelopment Group Co., Ltd. invested 24.5 million yuan in cash, a 49% in registered capital. In September 2023,Hengyouyuan Technology Development Group Co., Ltd. transferred its 34% equity of Hongyuan Dineng toChanghong Air Conditioning. After the transfer, Changhong Air Conditioning held 85% equity of Hongyuan Dineng.
16) Hong Yuan Ground Energy Heat Pump Tech. (Zhongshan) Co., Ltd.(hereinafter referred to as Hong yuanZhongshan) was established and invested on 18 July 2017 with registered capital of 15 million yuan, The HongYuan Ground Energy Heat Pump Tech. Co., Ltd contributed 1.5 million yuan with own funds and takes 100% in theregistered capital.In 2018, the shareholders of the Hong yuan Zhongshan decided to increase capital of 30 millionyuan, and contributed by the shareholder Hong Yuan Ground Energy; thus registered capital of Hong yuanZhongshan up to 45 million yuan
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1 ,2023 to December 31, 2023（Unless other wise specified, RMB for record in the statement)
17)Guangzhou Changhong Trading Co., Ltd. (hereinafter referred to as Changhong Trading) was establishedon 6 Jan. 2017, the wholly-owned subsidiary of Zhongshan Changhong Electric Co., LTD (hereinafter referred toas Zhongshan Changhong) with registered capital of one million yuan
18) Hebei Hongmao Household Appliance Technology Co., Ltd (hereinafter referred to as Hebei Hongmao)was established on 21 July 2017 with registered capital of 5 million yuan. Changhong Ridian invested 5 millionyuan by own fund and takes 100% in registered capital.
19) Anhui Tuoxing Technology Co., Ltd. (hereinafter referred to as Tuoxing Technology) was established on20 May 2019 with registered capital of 10 million yuan and it is the subsidiary of Zhongke Meiling with fully-owned establishment. On May 21, 2020 and February 21, 2021, Zhongke Meiling invested RMB 5 million, with atotal investment of RMB 10 million, accounting for 100% of its registered capital.
20) CH-Meiling.International (Philippines) Inc. was established on 13 February 2020 in Philippines withregistered capital of US$ 1,000,000, takes 100% of the equity. As of December 31,2020, the Company has investedUS$ 1,000,000,
21) Hefei Changhong Meiling Life Electric Co., Ltd was established on 24 December 2020, jointly establishedby the Company and Ningbo Hongling Enterprise Management Partnership (Limited Partnership). the Companycontributed 35 million yuan, representing 70% of the equity while 15 million yuan invested by Ningbo HonglingEnterprise Management Partnership (Limited Partnership), a 30% takes in the equity. The paid-in capitalcontribution from the Company and Ningbo Hongling Enterprise Management Partnership (Limited Partnership)has been completed on January 21, 2021 and on January 18, 2021 respectively.
22) Anhui Ling’an Medical Equipment Co., Ltd. (hereinafter referred to as Ling’an Medical) was establishedon 4 September 2021, which is a wholly-owned subsidiary of Zhongke Meiling, and registered capital of 10 millionyuan. On June 29, 2021, Zhongke Meiling actually contributed 10 million yuan, accounting for 100% of theregistered capital. In 2022, the Board of Directors of Zhongke Meiling decided to increase the registered capital byRMB 40 million. On December 30, 2022, the paid-in capital was completed, and the registered capital of Ling'anMedical increased to RMB 50 million.
(2) Major non-wholly-owned subsidiary
| 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 | 52.5488% | 8,474,284.50 | 9,149,568.12 | 316,091,458.55 |
| Ground Energy | 15.00% | 3,572,482.75 | 10,001,298.99 | |
| Ridian Technology | 0.9639% | 20,397.33 | 1,356,058.15 | |
| Meiling Life Appliances | 30.00% | 17,282,369.68 | 7,527,442.51 | 41,938,054.82 |
(3) Financial information for major non-wholly-owned subsidiary
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1 ,2023 to December 31, 2023（Unless other wise specified, RMB for record in the statement)
| Subsidiary | Ending balance | |||||
| Current assets | Non-current assets | Total assets | Current liability | Non-current liability | Total liabilities | |
| Zhongke Meiling | 590,872,333.93 | 143,608,411.32 | 734,480,745.25 | 120,874,302.44 | 12,086,470.45 | 132,960,772.89 |
| Ground Energy | 256,060,078.76 | 27,234,236.22 | 283,294,314.98 | 216,616,587.41 | 2,400.97 | 216,618,988.38 |
| Ridian Technology | 226,657,040.82 | 40,283,953.89 | 266,940,994.71 | 125,655,866.42 | 292,501.04 | 125,948,367.46 |
| Meiling Life Appliances | 621,873,116.90 | 613,240.68 | 622,486,357.58 | 481,523,383.11 | 1,169,458.41 | 482,692,841.52 |
（Continued）
| Subsidiary | Opening balance | |||||
| Current assets | Non-current assets | Total assets | Current liability | Non-current liability | Total liabilities | |
| Zhongke Meiling | 649,452,399.30 | 158,419,208.85 | 807,871,608.15 | 190,256,989.79 | 16,476,782.72 | 206,733,772.51 |
| Ground Energy | 190,767,892.48 | 18,222,456.16 | 208,990,348.64 | 158,674,964.71 | 214,658.38 | 158,889,623.09 |
| Ridian Technology | 231,271,013.10 | 42,012,672.36 | 273,283,685.46 | 135,113,073.14 | 538,894.36 | 135,651,967.50 |
| Meiling Life Appliances | 559,068,082.42 | 224,882.24 | 559,292,964.66 | 452,015,872.49 | 452,015,872.49 | |
（Continued）
| Subsidiary | Current Period | |||
| Operation income | Net profit | Total comprehensive income | Cash flow from operation activity | |
| Zhongke Meiling | 302,800,718.15 | 16,126,507.82 | 16,126,507.82 | -9,706,149.56 |
| Ground Energy | 564,892,721.56 | 15,842,650.38 | 15,842,650.38 | 56,039,000.87 |
| Ridian Technology | 238,871,773.09 | 2,116,223.21 | 2,116,223.21 | 14,725,141.77 |
| Meiling Life Appliances | 1,660,852,475.77 | 57,607,898.93 | 57,607,898.93 | 77,583,337.61 |
（Continued）
| Subsidiary | Last Period | |||
| Operation income | Net profit | Total comprehensive income | Cash flow from operation activity | |
| Zhongke Meiling | 406,489,091.83 | 46,273,692.68 | 46,273,692.68 | -38,010,376.20 |
| Ground Energy | 316,282,181.46 | 6,969,895.59 | 6,969,895.59 | 20,156,454.01 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1 ,2023 to December 31, 2023（Unless other wise specified, RMB for record in the statement)
| Subsidiary | Last Period | |||
| Operation income | Net profit | Total comprehensive income | Cash flow from operation activity | |
| Ridian Technology | 237,989,059.17 | 623,419.57 | 623,419.57 | -13,918,903.50 |
| Meiling Life Appliances | 1,419,586,443.18 | 40,576,245.84 | 40,576,245.84 | 67,906,512.81 |
(4) Major limitation on using enterprise group’s assets and liquidate debts of enterprise group: nil
(5) Offering financial supporting or other supports for structured entity that included in consolidation statementscope: nil
2. Changes of owner’ equity shares in subsidiary and its impacts: nil
| Item | Ground Energy | Total |
| Original ratio of shares held | 51% | 51% |
| Equity purchased from minority | 18,627,553.47 | 18,627,553.47 |
| Stock issue | ||
| End-of-term shareholding ratio | 85% | 85% |
| Equity purchased from minority | 19,618,000.00 | 19,618,000.00 |
| Less: Ratio of the net assets measured by equity ratio while acquiring the subsidiary | ||
| Equity dilution for shares issuance | ||
| Balance | 990,446.53 | 990,446.53 |
| Including: Capital public reserve adjusted | 990,446.53 | 990,446.53 |
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： | ||||||
| Sichuan Zhiyijia Network Technology Co., Ltd. | Mianyang | Mianyang | Sales | 50.00 | Equity | |
(2) Financial information for major Joint venture: nil
(3) Financial information for associate enterprise
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1 ,2023 to December 31, 2023（Unless other wise specified, RMB for record in the statement)
| Item | Sichuan Zhiyijia Network Technology Co., Ltd. | |
| Balance at year-end/Current Year | Balance at year-begin /Last Year | |
| Current assets | 2,466,521,759.37 | 3,283,851,057.02 |
| Including: cash and cash equivalent | 364,453,302.32 | 14,808,208.88 |
| Non-current assets | 18,519,147.09 | 5,635,867.44 |
| Total assets | 2,485,040,906.46 | 3,289,486,924.46 |
| Current liability | 2,343,467,271.81 | 3,185,798,119.47 |
| Non-current liability | 5,509,063.82 | 1,632,200.33 |
| Total liabilities | 2,348,976,335.63 | 3,187,430,319.80 |
| Total of net asset | 136,064,570.83 | 102,056,604.66 |
| Minority's interest | ||
| Equity attributable to shareholder of parent company | 136,064,570.83 | 102,056,604.66 |
| Share of net assets measured by shareholding | 68,032,285.42 | 51,028,302.33 |
| Adjustment | ||
| --Goodwill | 821,877.28 | 821,877.28 |
| Unrealized profit of the internal downstream transactions | ||
| Unrealized profit of the internal upstream transactions | ||
| Other | ||
| Book value of the equity investment for associate enterprise | 51,850,179.61 | |
| Fair value of equity investment for the affiliates with consideration publicly | ||
| Operation income | 509,222,643.15 | 11,137,539,778.84 |
| Financial expenses | -34,478,238.96 | -50,856,868.09 |
| Income tax expenses | 5,834,031.10 | -135,812.07 |
| Net profit | 37,428,167.10 | 12,126,330.11 |
| Other | ||
| Other comprehensive income | ||
| Total comprehensive income | 37,428,167.10 | 12,126,330.11 |
| Dividend received from associate enterprise in Current Year | 1,629,022.64 | |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1 ,2023 to December 31, 2023（Unless other wise specified, RMB for record in the statement)
(4) Financial summary for non-important Joint venture and associate enterprise
| Item | Balance at year-end/Current Year | Balance at year-begin /Last Year |
| Associated companies： | ||
| Total book value of investment | 43,891,649.05 | 48,534,248.89 |
| Total amount measured by shareholding ratio | ||
| --Net profit | -28,901,875.68 | -30,626,025.12 |
| --Other comprehensive income | 7,663,003.10 | 4,165,076.91 |
| -- Total comprehensive income | -21,238,872.58 | -26,460,948.21 |
(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 ChanghongRubaElectricCompany(Private)Ltd have lossesabove 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
5. Structured body excluding in consolidate financial statement: Nil
IX.Government subsidies
1.There is no government subsidies recognized by amount receivable at the end of the year
2.Liabilities involving government subsidies
| Accounting subject | Year-beginning balance | New subsidy amount this year | Amount included in non-operating income this year | Amount transferred to other income this year | Other changes this year | Year-end balance | Related to assets/income |
| Deferred income | 161,013,911.91 | 2,744,400.00 | 30,780,817.58 | 132,977,494.33 | Asset-related |
3.Government subsidies included in current profits and losses
| Accounting subject | Amount incurred this year | Amount incurred last year |
| Other income | 59,275,517.99 | 73,643,264.61 |
| Deferred income | 144,573.97 | 980,007.31 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1 ,2023 to December 31, 2023（Unless other wise specified, RMB for record in the statement)
| Accounting subject | Amount incurred this year | Amount incurred last year |
| Financial expenses | 42,100.00 |
X. Relevant risks related with financial instrumentThe major financial instruments of the Company include borrowings, account receivables, account payable, Tradingfinancial assets, Trading financial liability, the details of which are set out in Note VI.Risks related to these financialinstruments include exchange risks and interest rate risks. The management of the Company controls and monitorsthe risk exposures to ensure the above risks are under control.
1. Various risk management objectives and policies
The Company's goal in risk management is to strike a proper balance between risks and benefits, reduce the negativeimpact of risks on the Company's operating performance to the lowest level, and maximize the interests ofshareholders and other equity investors. Based on this risk management goal, the basic strategy of the Company'srisk management is to identify and analyze all kinds of risks faced by the Company, establish an appropriate risktolerance bottom line and conduct risk management, and timely and reliably supervise all kinds of risks to controlthe risks within a limited range.
(1) Market risk
1) Exchange rate risk
The Company pays close attention to the impact of exchange rate changes on the Company. The Company attachesgreat importance to the study of exchange rate risk management policies and strategies. In order to avoid theexchange rate risk of foreign currency payment and foreign currency collection and settlement income, the Companyhas signed several forward foreign exchange contracts with banks. The fair value of forward foreign exchangecontracts recognized as derivative financial instruments on December 31, 2023 is RMB 7,007,434.77. Changes inthe fair value of derivative financial instruments have been included in the profit and loss, and the relevant contentsof "V. 56 Income from changes in fair value" in this note. In the meantime, with the constant change in the share ofthe international market, if there are risks beyond the control of the Company, such as unilateral large changes inthe RMB exchange rate, the Company will reduce the risks by adjusting the sales or purchasing strategies.
2) Interest rate risk
The Company's interest rate risk arises from bank loans and interest-bearing debts. Financial liabilities with floatinginterest rate expose the Company to cash flow interest rate risk, while financial liabilities with fixed interest rateexpose the Company to fair value interest rate risk. The Company decides the relative proportion of fixed interestrate and floating interest rate contracts according to the market environment at that time. On December 31, 2023,the Company's interest-bearing debts were mainly the fixed-rate loan contracts denominated in RMB, with a totalamount of RMB 1,133,967,080.14 ; and the RMB floating-rate loan contracts, with a total amount of RMB148,000,000.00. The Company's risk of changes in the fair value of financial instruments due to changes in interestrates is mainly related to fixed-rate bank loans. The Company's risk of cash flow changes of financial instrumentscaused by interest rate changes is mainly related to floating interest rate bank loans. The Company pays close
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1 ,2023 to December 31, 2023（Unless other wise specified, RMB for record in the statement)
attention to the impact of this part of interest rate changes on the Company and attaches importance to the study ofinterest rate risk management policies and strategies.
(2) Credit risk
On December 31, 2023, the biggest credit risk exposure that may cause the financial loss of the Company mainlycomes from the loss of the Company's financial assets caused by the failure of the other party to the contract andthe financial guarantee undertaken by the Company, including: the book amount of the financial assets recognizedin the consolidated balance sheet; For financial instruments measured at fair value, the book value reflects their riskexposure, but not the maximum risk exposure, and its maximum risk exposure will change with the change of fairvalue in the future. In order to reduce the credit risk, the Company set up a special department to determine thecredit line, conduct credit approval, and implement other monitoring procedures to ensure that necessary measuresare taken to recover overdue creditor's rights. Meanwhile, the Company tries to reduce the impact of credit defaultof creditor's rights by purchasing credit insurance. In addition, the Company reviews the recovery of each singlereceivable on each balance sheet date to ensure that sufficient bad debt provision is made for unrecoverable funds.Therefore, the management of the Company believes that the credit risk assumed by the Company has been greatlyreduced. The Company's working capital is deposited in the finance company, so the credit risk of working capitalis low. The Company has adopted necessary policies to ensure that all sales customers have good credit records.The total amount of the top five accounts receivable is RMB 572,545,992.76, accounting for 28.88% of the accountsreceivable at the end of the year, which is dependent on major customers. Except for the top five accounts receivable,the Company has no other major credit risks.
(3) Liquidity risk
Liquidity risk is the risk that the Company cannot fulfill its financial obligations on the due date. The Company'smethod of managing liquidity risk is to ensure that there is enough financial liquidity to fulfill the due debts throughcapital plan management, without causing unacceptable losses or damaging the reputation of the company.According to the requirements of the capital plan cycle, the Company makes a capital plan in advance to ensure thatthere is sufficient capital when the debt is due. The management of the Company monitors the use of bank loansand ensures compliance with the loan agreement. In the meantime, it conducts financing negotiations with financialinstitutions to maintain a certain credit line and reduce liquidity risk.
2.Hedging
(1)The Company carries out hedging business and risk management
The Company uses forward foreign exchange contracts to hedge the risk of exchange rate fluctuations. The Company designates the purchased forward foreign exchange contracts as hedging instruments and processes them in accordance with the hedging accounting method. The hedged items of unrecognized asset and liability items such as unconfirmed firm commitments are evaluated on the balance sheet date. The Company uses ratio analysis method to evaluate the effectiveness of hedging.The Company conducts qualified hedging business and applies hedging accounting
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1 ,2023 to December 31, 2023（Unless other wise specified, RMB for record in the statement)
(2)The Company conducts qualified hedging business and applies hedging accounting
| Item | Book value related to hedged items and hedging instruments | Hedging adjustment of accumulated fair value of hedged items included in the book value of hedged items recognized | Hedging effectiveness and source of part with invalid hedging | Impact of hedging accounting on the Company's financial statements |
| Fair value hedging | ||||
| Exchange rate risk - Forward foreign exchange contracts and unrecognized firm commitments, etc. | 610,421,375.18 | — | Financial expenses - Exchange losses; Investment income; Change of income fair value | -90,977,968.76 |
3.Transfer of financial assets
(1)Classification of transfer modes
| Transfer mode | Nature of transferred financial assets | Amount of transferred financial assets | Derecognized or not | Judgment basis of derecognition |
| Notes endorsement/Notes discount | Notes receivable | 38,674.50 | Not derecognized | Almost all its risks and rewards, including the risk of default related to it, are retained |
| Notes endorsement/Notes discount | Receivable financing | 2,505,643,801.34 | Derecognized | Almost all its risks and rewards have been transferred |
| Factoring | Accounts receivable | 5,401,255,213.11 | Derecognized | Almost all its risks and rewards have been transferred |
| Total | 7,906,937,688.95 |
(2)Financial assets that are derecognized due to transfer
| Item | Ways of financial assets transfer | Amount of financial assets derecognized | Gains or losses related to derecognition |
| Receivable financing | Notes endorsement/Notes discount | 2,505,643,801.34 | -11,479,703.09 |
| Accounts receivable | Factoring | 5,401,255,213.11 | -20,643,418.20 |
| Total | — | 7,906,899,014.45 | -32,123,121.29 |
(3) Financial assets that continue to be involved in asset transfer
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1 ,2023 to December 31, 2023（Unless other wise specified, RMB for record in the statement)
| Item | Mode of asset transfer | Amount of assets formed by continuous involvement | Amount of liabilities formed by continuous involvement |
| Notes receivable | Notes endorsement/Notes discount | 38,674.50 | |
| Other current liabilities | Notes restoration | 38,674.50 | |
| Total | — - | 38,674.50 | 38,674.50 |
On December 31, 2023, the book value endorsed by the Company to suppliers for settlement of accounts payablewas RMB 38,674.50. The Company believes that it has retained almost all its risks and rewards, including the riskof default related to it, so it continues to fully recognize its related liabilities.
XI. Fair value disclosure
1. Asset and liability measured by fair value at end of Current Period and fair value measurement level
| Items | Fair value at period-end | |||
| 1st level | 2nd level | 3rd level | Total | |
| I. Continuous fair value measurement | — | — | — | — |
| (i) Trading financial assets | 39,236,447.63 | 39,236,447.63 | ||
| 1.Financial assets measured at fair value and whose changes are included in current gains/losses | 39,236,447.63 | 39,236,447.63 | ||
| Including: Derivative financial assets | 39,236,447.63 | 39,236,447.63 | ||
| (ii) Other non-current financial assets | 105,194,079.19 | 568,945,436.29 | 674,139,515.48 | |
| (iii) Receivables financing | 1,641,858,740.34 | 1,641,858,740.34 | ||
| Total assets continuously measured at fair value | 39,236,447.63 | 105,194,079.19 | 2,210,804,176.63 | 2,355,234,703.45 |
| (iv) Trading financial liability | 32,229,012.86 | 32,229,012.86 | ||
| 1. Financial liabilities measured by fair value and with variation reckoned into current gains/losses | 32,229,012.86 | 32,229,012.86 | ||
| Including: Derivative financial liability | 32,229,012.86 | 32,229,012.86 | ||
| Total liabilities continuously measured at fair value | 32,229,012.86 | 32,229,012.86 | ||
2. The basis for determining the market price of continuous and non-continuous first-level fair valuemeasurement items
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1 ,2023 to December 31, 2023（Unless other wise specified, RMB for record in the statement)
The company's fair value measurement items are futures contracts and foreign exchange options. The marketprice of futures contracts is determined based on the closing price of the futures contract at the end of the period;the market price of foreign exchange options is determined based on the quotation of contract products of the foreignexchange options at the end of the period.
3. Qualitative and quantitative information on the valuation techniques used and important parameters forcontinuous and non-continuous second-level fair value measurement items
The fair value measurement items are long-term investments in the fund company. For long-term investmentsin fund companies, the assessed book value can represent the best estimate of fair value within the scope.
4. Qualitative and quantitative information on the valuation techniques used and important parameters forcontinuous and non-continuous third-level fair value measurement items
The items with fair value measurement refer to the investment of Sichuan Changhong Group Finance Co., Ltdand Huishang Bank Co., Ltd. As the unlisted equity instrument, the fair value are estimated using a range ofvaluation models, the assumptions used are not supported by observable market prices or interest rates. We believesthat the fair value and their changes estimated by valuation techniques are reasonable and are the most appropriatevalues at the balance sheet date.XII. Related parties and related transaction(I) Relationship of related parties
1. Controlling shareholder and ultimate controller
(1) Controlling shareholder and ultimate controller
Sichuan Changhong Electronics Holding Group is the controlling shareholder of Sichuan Changhong Electric Co.,LTD, and the SASAC Mianyang office holds 90% equity interests of Sichuan Changhong Electronic HoldingGroup, which means that SASAC Mianyang office is the ultimate controller of the Company.
(2) Register capital and change thereof of controlling shareholder
| Controlling shareholder | Opening balance | Increase this period | Decrease this period | Ending balance |
| Sichuan Changhong Electric Co., Ltd. | 4,616,244,222.00 | 4,616,244,222.00 |
| 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% |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1 ,2023 to December 31, 2023（Unless other wise specified, RMB for record in the statement)
(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% | 27.36% |
2. Subsidiary
Found more in Note “VIII. 1 (1) Enterprise group composition”
3. Joint venture and associated enterprise
Other Joint venture and associated enterprise that have related transactions occurred with the Company in CurrentPeriod or occurred in last period, and with balance results:
| Joint venture and associated enterprise | Relationship with the company |
| Changhong Ruba Electric Company (Private) Ltd. | Associated enterprise of subsidiary Zhongshan Changhong |
| Chengdu Guigu Environmental Tech. Co., Ltd | Associated enterprise of subsidiary Changhong Air-conditioner |
| 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 |
| Sichuan Zhiyijia Network Technology Co., Ltd. | Associated enterprise of the Company, has the same controlling shareholder and actual control of the Company |
4. Other related party
| Other related party | Relationship with the company |
| Mianyang Haili Appliance Co., Ltd. | Associated enterprise of controlling shareholder |
| Sichuan Hongran Green Energy Co., Ltd. | Associated enterprise of controlling shareholder |
| Sichuan Changxin Refrigeration Parts Co., Ltd. | Associated enterprise of controlling shareholder |
| 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 |
| 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 |
| CHANGHONG (HK) TRADING LIMITED | Control by same controlling shareholder and ultimate |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1 ,2023 to December 31, 2023（Unless other wise specified, RMB for record in the statement)
| Other related party | Relationship with the company |
| controller | |
| CHANGHONG.ELECTRIC.(AUSTRALIA) PTY.LTD. | Control by same controlling shareholder and ultimate controller |
| Orion.PDP.Co.,Ltd | Control by same controlling shareholder and ultimate controller |
| PT.CHANGHONG ELECTRIC INDONESIA | Control by same controlling shareholder and ultimate controller |
| Chengdu Changhong Electronic Technology Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Guangdong Changhong Electronics Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Guangyuan Hongcheng Industrial Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Guangyuan Changhong Electronic Technology Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Hefei Changhong Industrial Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| 081 Electronic Group Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Mianyang Hongshang Real Estate Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Mianyang Huafeng Hulian Technology 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 Aichuang Science & Technology Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Ailink Technology Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Ansifei 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 Hongmofang Network Technology Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Hongwei Technology Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Hongxin Software Co., Ltd. | Control by same controlling shareholder and ultimate controller |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1 ,2023 to December 31, 2023（Unless other wise specified, RMB for record in the statement)
| Other related party | Relationship with the company |
| Sichuan Huafeng Technology Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Jiahong Industry Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Kuaiyidian Electric Appliance Service Chain Co., Ltd | Control by same controlling shareholder and ultimate controller |
| Sichuan Qineng Zhongzheng 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 Qisai Microelectronics 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 Power Source Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Changhong Electronic Products 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 Changhong International Hotel 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 Group Finance 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 Jiahua Information Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Changhong Jichuang Lithium Technology 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 Minsheng Logistics Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Changhong Moulding Tech. Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Changhong Device Technology Co., Ltd. | Control by same controlling shareholder and ultimate |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1 ,2023 to December 31, 2023（Unless other wise specified, RMB for record in the statement)
| Other related party | Relationship with the company |
| controller | |
| Sichuan Changhong Network 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 Changhong New Energy Technology Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Changhong Xinwang 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 Real Estate Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Yibin Hongxing Electric Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Yuanxin Financial Lease 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 |
| Changhua Huayi Compressor Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Zhongjiu Shining Medical Technology Co., Ltd. | Control by same controlling shareholder and ultimate controller |
(ii) Related transactions
1. Purchasing commodity
| Related party | Content | Current Year | Approved tradingquota （（In 10 thousand yuan) | Whether the trading inmit is exceeded | Last year |
| （In 10 thousand yuan) | （In 10 thousand yuan) | ||||
| Sichuan Changhong Model Technology Co., Ltd. | Purchasing commodity | 78,955.55 | 100,000.00 | No | 80,947.69 |
| Changhong Huayi Compressor Co., Ltd. | Purchasing commodity | 56,361.04 | 54,000.00 | Yes | 45,173.47 |
| Sichuan Changxin Refrigeration Parts Co., Ltd. | Purchasing commodity | 53,476.76 | 53,050.78 | ||
| Sichuan Changhong Jijia Fine Co., Ltd. | Purchasing | 47,006.81 | 65,000.00 | No | 45,767.42 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1 ,2023 to December 31, 2023（Unless other wise specified, RMB for record in the statement)
| Related party | Content | Current Year | Approved tradingquota （（In 10 thousand yuan) | Whether the trading inmit is exceeded | Last year |
| （In 10 thousand yuan) | （In 10 thousand yuan) | ||||
| commodity | |||||
| Mianyang Haili Appliance Co., Ltd | Purchasing commodity | 36,490.77 | 10,109.13 | ||
| Guangdong Changhong Electronics Co., Ltd. | Purchasing commodity | 34,336.31 | 65,000.00 | No | 33,985.13 |
| Sichuan Aichuang Technology Co., Ltd. | Purchasing commodity | 16,847.00 | 20,000.00 | No | 11,551.33 |
| Sichuan Changhong Package Printing Co., Ltd. | Purchasing commodity | 11,012.12 | 20,000.00 | No | 13,066.04 |
| Changhong International Holdings (Hong Kong) Co., Ltd. | Purchasing commodity | 5,500.00 | 12,000.00 | No | 510.85 |
| Sichuan Changhong Electric Holdings Group Co., Ltd. | Purchasing commodity | 3,715.78 | 15,000.00 | No | |
| Sichuan Changhong Electronic Products Co., Ltd. | Purchasing commodity | 2,761.52 | 4,000.00 | No | 2,546.79 |
| Sichuan Aoku Technology Co., Ltd. | Purchasing commodity | 2,758.52 | 15,000.00 | No | 764.15 |
Sichuan Changhong Precision Electronics Tech.Co., Ltd.
| Sichuan Changhong Precision Electronics Tech. Co., Ltd. | Purchasing commodity | 2,510.14 | 4,500.00 | No | 2,570.75 |
| ChanghongRubaElectricCompany (Private) Ltd. | Purchasing commodity | 1,234.06 | 6,640.82 | ||
| Sichuan Ailian Technology Co., Ltd. | Purchasing commodity | 1,231.98 | 5,000.00 | No | 913.94 |
| Sichuan Zhiyijia Network Technology Co., Ltd. | Purchasing commodity | 806.22 | 8,000.00 | No | 530.29 |
| Sichuan Changhong Appliance Technology Co., Ltd. | Purchasing commodity | 797.63 | 8,000.00 | No | 768.89 |
| Sichuan Changhong Electric Co., Ltd. | Purchasing commodity | 753.21 | 8,000.00 | No | 417.80 |
| Hefei Changhong Industrial Co., Ltd. | Purchasing commodity | 714.92 | 8,000.00 | No | 394.74 |
| Sichuan Hongran Green Energy Co., Ltd. | Purchasing commodity | 145.41 | |||
| Sichuan Changhong New Energy Technology Co., Ltd. | Purchasing commodity | 20.18 | 15,000.00 | No | 4.31 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1 ,2023 to December 31, 2023（Unless other wise specified, RMB for record in the statement)
| Related party | Content | Current Year | Approved tradingquota （（In 10 thousand yuan) | Whether the trading inmit is exceeded | Last year |
| （In 10 thousand yuan) | （In 10 thousand yuan) | ||||
| 081 Electronic Group Co., Ltd. | Purchasing commodity | 5.30 | 8,000.00 | No | |
| Sichuan Hongwei Technology Co., Ltd. | Purchasing commodity | 4.72 | 8,000.00 | No | |
| Sichuan Changhong International Hotel Co., Ltd. | Purchasing commodity | 3.23 | 15,000.00 | No | 1.17 |
| Sichuan Jiahong Industrial Co., Ltd. | Purchasing commodity | 2.80 | 15,000.00 | No | 8.25 |
| Sichuan Hongyu Metal Manufacturing Co., Ltd. | Purchasing commodity | 1.47 | |||
| Sichuan Kuaiyidian Electric Appliance Service Chain Co., Ltd | Purchasing commodity | 0.18 | 8,000.00 | No | 0.12 |
| Sichuan Changhong Power Source Co., Ltd. | Purchasing commodity | 0.18 | 8,000.00 | No | |
| Sichuan Changhong Intelligent Manufacturing Technology Co., Ltd. | Purchasing commodity | 0.05 | 15,000.00 | No | 1.62 |
| Chengdu Guigu Environment Technology Co., Ltd. | Purchasing commodity | 22.19 | |||
| Total | 357,540.13 | 309,747.67 |
2. Accept the services
| Related party | Content | Current Year | Approved trading quota | Whether the trading limit is exceeded | Last Year |
| Sichuan Changhong Minsheng Logistics Co., Ltd. | Accept the services | 683,224,664.94 | 820,000,000.00 | No | 616,571,560.92 |
| Sichuan Service Exp. Appliance Service Chain Co., Ltd. | Accept the services | 318,330,631.13 | 450,000,000.00 | No | 300,207,670.49 |
| Sichuan Changhong Moulding Tech. Co., Ltd. | Accept the services | 40,943,864.06 | 100,000,000.00 | No | 21,996,492.76 |
| Sichuan Hongxin Software Co., Ltd. | Accept the | 13,208,179.25 | 100,000,000.00 | No | 10,867,739.17 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1 ,2023 to December 31, 2023（Unless other wise specified, RMB for record in the statement)
| Related party | Content | Current Year | Approved trading quota | Whether the trading limit is exceeded | Last Year |
services
| services | |||||
| Sichuan Qiruik Technology Co., Ltd. | Accept the services | 9,901,242.40 | 150,000,000.00 | No | 8,525,543.51 |
| Sichuan Changhong Jijia Fine Co., Ltd. | Accept the services | 7,801,048.46 | 100,000,000.00 | No | 10,671,879.96 |
| Sichuan Jiahong Industry Co., Ltd. | Accept the services | 5,580,266.42 | 150,000,000.00 | No | 7,421,624.51 |
| Sichuan Changhong Electric Co., Ltd. | Accept the services | 3,886,724.22 | 100,000,000.00 | No | 4,882,453.51 |
| Sichuang Changhong Electric Holdings Group Co., Ltd. | Accept the services | 2,834,748.30 | 150,000,000.00 | No | 1,954,498.90 |
| Sichuan Changxin Refirgeration Part Co., Ltd. | Accept the services | 2,113,071.18 | 8,889,532.68 | ||
| Sichuan Aichuang Technology Co., Ltd. | Accept the services | 1,371,321.88 | 150,000,000.00 | No | 1,069,829.75 |
| Guangdong Changhong Electric Co., Ltd. | Accept the services | 1,112,606.43 | 100,000,000.00 | No | 1,223,519.69 |
| Sichuan Changhong International Hotel Co., Ltd. | Accept the services | 736,015.39 | 150,000,000.00 | No | 351,928.96 |
| Sichuan Changhong Gerun Environmental Technology Co., Ltd. | Accept the services | 325,332.17 | 150,000,000.00 | No | 59,745.71 |
| Sichuan Changhong Electric Part Co., Ltd. | Accept the services | 275,044.71 | 100,000,000.00 | No | |
| Sichuan Changhong Property Service Co., Ltd. | Accept the services | 145,611.44 | 150,000,000.00 | No | 114,522.42 |
| Sichuan Zhiyijia Network Technology Co., Ltd. | Accept the services | 139,286.01 | 100,000,000.00 | No | 155,202.18 |
| Sichuan Changhong Intelligent Manufacturing Technology Co., Ltd. | Accept the services | 94,339.62 | 150,000,000.00 | No | 73,130.53 |
| Orion.PDP.Co.,ltd | Accept the services | 50,097.44 | 150,000,000.00 | No | |
| Sichuan Changhong Network Technology Co., Ltd. | Accept the services | 30,517.92 | 100,000,000.00 | No | 24,891.99 |
| Sichuan Ailian Technology Co., Ltd. | Accept the | 10,754.72 | 150,000,000.00 | No |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1 ,2023 to December 31, 2023（Unless other wise specified, RMB for record in the statement)
| Related party | Content | Current Year | Approved trading quota | Whether the trading limit is exceeded | Last Year |
services
| services | |||||
| Sichuan Hongwei Technology Co., Ltd. | Accept the services | 6,920.35 | 100,000,000.00 | No | |
| Chengdu Gugu Environment Technology Co., Ltd. | Accept the services | 124,778.76 | |||
| Sichuan Changhong Appliance Technology Co., Ltd. | Accept the services | 81,652.50 | |||
| Total | 1,092,122,288.44 | 995,268,198.90 |
3. Sales of goods
| Related party | Content | Current Period | Last Period |
| (in 10 thousand Yuan) | (in 10 thousand Yuan) | ||
| Sichuan Zhiyijia Network Technolgy Co., Ltd. | Sales of goods | 728,895.73 | 683,645.83 |
| CHANGHONG(HK)TRADINGLIMITED | Sales of goods | 69,999.52 | 35,986.86 |
| CHANGHONGELECTRIC(AUSTRALIA)PTY.LTD. | Sales of goods | 17,630.27 | 16,831.82 |
| Changhong International Holdings (Hong Kong) Co., Ltd. | Sales of goods | 11,246.60 | 10,146.95 |
| Changhong Europe Electric s.r.o | Sales of goods | 10,299.23 | 1,376.83 |
| Orion.PDP.Co.,ltd | Sales of goods | 4,478.34 | 5,156.73 |
| Sichuan Service Exp. Appliance Service Chain Co., Ltd. | Sales of goods | 654.81 | 704.59 |
| Sichuan Aichuang Technology Co., Ltd. | Sales of goods | 407.43 | 2.19 |
| Sichuan Changhong Intelligent Manufacturing Technology Co., Ltd. | Sales of goods | 258.76 | |
| Sichuan Changhong Electric Co., Ltd. | Sales of goods | 225.21 | 138.77 |
| Sichuan Changhong Jiechuang Lithium battery Technology Co., Ltd. | Sales of goods | 114.78 | |
| Sichuan Tianyou Guigu Technology Co., Ltd. | Sales of goods | 96.18 | 206.70 |
| Sichuan Changhong Minsheng Logistic Co., Ltd. | Sales of goods | 79.93 | 254.19 |
| Chengdu Guigu Environment Technology Co., Ltd. | Sales of goods | 43.78 | 53.43 |
| Guangyuan Changhong Electric Technology Co., Ltd. | Sales of goods | 24.10 | 15.00 |
| Hong Yuan Ground Energy Heat Tech. Co., Ltd. | Sales of goods | 23.32 | 571.43 |
| Sichuan Aoku Technology Co., Ltd. | Sales of goods | 21.93 | 23.01 |
| Sichuan Changhong Model Technology Co., Ltd. | Sales of goods | 21.18 | 68.44 |
| Guangdong Changhong Electric Co., lTD. | Sales of goods | 20.78 | 10.59 |
| Sichuan Baiku Technology Co., Ltd. | Sales of goods | 19.20 | 64.39 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1 ,2023 to December 31, 2023（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 Appliance Technology Co., Ltd. | Sales of goods | 14.81 | 10.46 |
| Zhongjiu Shining Medical Technology Co., Ltd. | Sales of goods | 14.57 | |
| Sichuan Qineng Zhongzheng Technology Co., Ltd. | Sales of goods | 9.85 | |
| Yibin Hongxing Electric Co., Ltd. | Sales of goods | 8.67 | |
| Sichuan Changhong Real Estate Co., Ltd. | Sales of goods | 6.11 | 9.72 |
| Sichuan Hongmofang Network Technology Co., Ltd. | Sales of goods | 6.06 | |
| Sichuan Changhong Power Source Co., Ltd. | Sales of goods | 5.46 | |
| Sichuan Qisai Microelectronics Co.,Ltd. | Sales of goods | 4.99 | |
| Sichuan Changhong Jija Fine Co., Ltd. | Sales of goods | 2.68 | 6.20 |
| Sichuan Changhong Precision Electronic Technology Co., Ltd | Sales of goods | 1.08 | |
| Sichuan Jiahong Industry Co., Ltd. | Sales of goods | 0.84 | |
| Sichuan Ailian Technology Co., Ltd. | Sales of goods | 0.78 | |
| Sichuan Changhong Electric Holdings Group Co., Ltd. | Sales of goods | 0.60 | 42.38 |
| Sichuan Changhong Property Service Co., Ltd. | Sales of goods | 0.46 | |
| Sichuan Qiruik Technology Co., Ltd. | Sales of goods | 0.27 | 0.31 |
| Sichuan Ansifei Technology Co., Ltd. | Sales of goods | 0.01 | 2.42 |
| CHANGHONG ELECTRIC MIDDLE EAST FZCO | Sales of goods | 1,725.97 | |
| Changhong Ruba Electric Company (Private) Ltd. | Sales of goods | 1,032.08 | |
| Yuanxin Financing Lease Co., Ltd. | Sales of goods | 245.87 | |
| Sichuan Huafeng Technology Co., Ltd. | Sales of goods | 35.31 | |
| Changhong Huayi Compressor Co., Ltd. | Sales of goods | 7.26 | |
| Mianyang Hongsheng Real Estate Co., Ltd. | Sales of goods | 2.56 | |
| Sichuan Hongxin Software Co., Ltd. | Sales of goods | 0.11 | |
| Total | 844,638.32 | 758,378.40 |
4. Providing services
| Related party | Content | Current Year | Last Year |
| Sichuan Changhong Electric Co., Ltd. | Providing services | 11,395,693.06 | 2,271,754.66 |
| Sichuan Aichuang Technology Co., Ltd. | Providing services | 4,743,474.93 | -242,246.63 |
| Sichuan Service Exp. Appliance Service Chain Co., Ltd. | Provide the services | 2,315,536.37 | 1,977,927.75 |
| Sichuan Changhong Jiechuang Lithium Battery Technology Co., Ltd. | Providing services | 2,277,747.12 | 57,269.68 |
| Sichuan Changhong Model Technology Co., Ltd. | Providing services | 1,390,026.86 | 339,008.37 |
| Changhong Huayi Compressor Co., Ltd. | Provide the services | 1,343,950.04 | 2,049,559.70 |
| Yuanxin Financing Lease Co., Ltd. | Providing services | 907,791.40 | 2,843,225.41 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1 ,2023 to December 31, 2023（Unless other wise specified, RMB for record in the statement)
| Related party | Content | Current Year | Last Year |
| Guangdong Changhong Electric Co., Ltd | Providing services | 627,354.91 | 819,840.18 |
| Sichuan Huafeng Technology Co., Ltd. | Provide the services | 464,234.00 | 442,842.31 |
| Sichuan Changhong Minsheng Logistics Co., Ltd. | Providing services | 379,007.97 | 215,817.23 |
| Mianyang Huafeng Hulian Technology Co., Ltd. | Providing services | 349,753.68 | 88,192.89 |
| Sichuan Changhong Network Technology Co., Ltd. | Provide the services | 268,020.00 | |
| Sichuan Changhong Property Service Co., Ltd. | Providing services | 259,029.87 | 171,595.00 |
| Sichuan Zhiyijia Network Technology Co., Ltd. | Providing services | 185,395.50 | 952,679.40 |
| Sichuan Changhong Xinwang Technology Co., Ltd | Provide the services | 128,670.00 | |
| Sichuan Changhong Jija Fine Co., Ltd. | Provide the services | 127,547.47 | 83,244.16 |
| Sichuan Changhong Appliance Technology Co., Ltd. | Providing services | 124,018.93 | 93,760.05 |
| Sichuan Qineng Zhongzheng Technology Co., Ltd. | Providing services | 108,865.14 | |
| Sichuan Qiruik Technology Co., Ltd. | Provide the services | 95,653.62 | 1,332.00 |
| Sichuan Hongwei Technology Co., Ltd. | Providing services | 69,735.85 | 46,490.57 |
| Sichuan Changhong International Hotel Co., Ltd. | Providing services | 65,714.90 | 34,555.53 |
| Sichuan Changhong Real Estate Co., Ltd. | Provide the services | 45,992.16 | |
| Sichuan Qisai \Microelectonics Co., Ltd. | Providing services | 44,593.58 | |
| Sichuan Changhong Xingwang Technology Co., Ltd. | Providing services | 16,670.00 | |
| Chengdu Guigu Environment Technology Co., Ltd. | Provide the services | 10,061.17 | 263,625.23 |
| Sichuan Changhong Electric Part Co., Ltd. | Providing services | 7,200.00 | 3,600.00 |
| Sichuan Changhong Electric Group Co., Ltd. | Providing services | 6,742.60 | 311,964.22 |
| Sichuan Aoku Technology Co., Ltd. | Provide the services | 4,456.25 | 156,191.31 |
| Sichuan Changhong Precision Electronic Technology Co., Ltd | Providing services | 4,320.00 | 4,050.00 |
| Hefei Changhong Industry Co., Ltd. | Providing services | 42.50 | 3,457.50 |
| Sichuan Changxin Refrigeration Part Co., Ltd. | Provide the services | 229,524.66 | |
| 081 Electronic Group Co., Ltd. | Providing services | 93,124.78 | |
| Guangyuan Hongcheng Industry Co., Ltd. | Providing services | 45,871.56 | |
| Sichuan Ansifei Technology Co., Ltd. | Providing services | -2,685.82 | |
| Total | 27,750,629.88 | 13,355,571.70 |
Businesses between the Company and its connected persons are generally conducted under market operation rulesas if they were the same as other business counterparties. For price of sale or purchase and provision of other laborservice between the Company and its related parties, the state pricing is applicable if the pricing do exists; in caseof absence of such state pricing, price is determined under market price; in case of absence of such market price,price is determined by both parties at actual cost plus reasonable expenses; for some special services, the price ofwhich cannot be determined under the rule of cost plus expense, the price shall be determined by both parties bynegotiation.
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1 ,2023 to December 31, 2023（Unless other wise specified, RMB for record in the statement)
5. 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 | 2,956,810.97 | 2,666,842.20 |
| Changhong Meiling | Sichuan Changhong Jijia Fine Co., Ltd. | warehouse, apartment, forklift, warehouse | 950,642.38 | 893,341.66 |
| Changhong Meiling | Sichuan Changhong Minsheng Logistics Co., Ltd. | apartment, office | 206,115.96 | 181,355.96 |
| Changhong Meiling | Sichuan Zhiyijia Network Technology Co., Ltd. | Apartment | 188,256.88 | 188,256.88 |
| Changhong Meiling | Sichuan Service Exp. Appliance Service Chain Co., Ltd. | Apartments, Offices, Forklifts | 162,376.19 | 184,560.00 |
ChanghongMeiling
| Changhong Meiling | Hefei Changhong Industrial Co., Ltd. | Apartments, warehouses, forklifts | 159,792.74 | 611,142.15 |
| Changhong Meiling | Sichuan Aoku Technology Co., Ltd. | Warehouse | 43,392.81 | 9,467.90 |
| Changhong Meiling | Sichuan Ailink Technology Co., Ltd. | Warehouse | 39,014.00 | 51,093.26 |
| Changhong Meiling | Changhong Huayi Compressor Co., Ltd. | Warehouse | 5,811.32 | |
| Changhong Meiling | Sichuan Hongxin Software Co., Ltd. | Apartments | 4,400.00 | |
| Changhong Meiling | Sichuan Aichuang Science & Technology Co., Ltd. | Warehouse | 3,496.76 | 1,877.88 |
| Changhong Meiling | Sichuan Changhong Precision Electronic Technology Co., Ltd | Apartments | 1,105.00 | 63,600.00 |
| Changhong Air-conditioner | Sichuan Changhong Moulding Tech. Co., Ltd. | Workshop | 5,524,818.10 | 5,329,999.71 |
| Changhong Air-conditioner | Sichuan Changhong Jijia Fine Co., Ltd. | warehouse | 3,662,397.40 | 3,601,311.97 |
| Changhong Air-conditioner | Sichuan Changhong Electric Co., Ltd. | Workshop | 807,070.04 | 1,786,799.14 |
| Changhong Air-conditioner | Sichuan Changxin Refrigeration Parts Co., Ltd. | Processing equipment of U | 159,999.98 | 206,666.67 |
| Changhong Air-conditioner | Chengdu Guigu Environmental Tech. Co., Ltd | House and buildings | 28,403.67 | 28,403.67 |
| Changhong Air-conditioner | Sichuan Changhong Electric Holding Co., Ltd. | plant, equipment | 4.49 | 19,563.84 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1 ,2023 to December 31, 2023（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 |
| Ridian Technology | Sichuan Changhong Device Technology Co., Ltd. | 2# living area | 2,147,149.80 | 2,147,149.80 |
| Ridian Technology | Sichuan Qiruik Technology Co., Ltd. | plant | 47,314.29 | 47,314.29 |
| Zhongshan Changhong | Sichuan Changhong Device Technology Co., Ltd. | living area | 67,200.00 | 84,000.00 |
| Zhongshan Changhong | Sichuan Changhong Minsheng Logistics Co., Ltd. | Warehouse Office | 44,297.16 | 44,297.16 |
| Zhongshan Changhong | Sichuan Changhong Moulding Tech. Co., Ltd. | living area | 34,946.67 | 64,800.00 |
| Zhongshan Changhong | Guangdong Electric Co., Ltd. | living area | 14,221.47 | |
| Jiangxi Meiling | Sichuan Changhong Moulding Tech. Co., Ltd. | Workshop | 822,288.36 | 822,288.36 |
| Jiangxi Meiling | Sichuan Aichuang Science & Technology Co., Ltd. | Warehouse | 9,600.00 | 8,914.29 |
| Jiangxi Meiling | Sichuan Changhong Minsheng Logistics Co., Ltd. | Workshop | 9,142.86 | 9,142.86 |
| Jiangxi Meiling | Sichuan Changhong Jijia Fine Co., Ltd. | Workshop | 8,000.00 | 7,428.57 |
| Jiangxi Meiling | Changhong Huayi Compressor Co., Ltd. | Workshop | 4,800.00 | 4,457.14 |
| Jiangxi Meiling | Hefei Changhong Industry Co., Ltd. | Workshop | 1,485.71 | |
| Total | 18,098,647.83 | 19,079,782.54 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1 ,2023 to December 31, 2023（Unless other wise specified, RMB for record in the statement)
(2)Lessee of related parties
| Lessor | Lessee | Type of assets | Rental charges for short-term and low-value assets (if any) | Variable lease payments not included in lease liabilities measurement (if any) | Rent paid | Interest expenses on lease liabilities assumed | Increased use right assets | |||||
| Amount of current period | Amount of previous period | Amount of current period | Amount of previous period | Amount of current period | Amount of previous period | Amount of current period | Amount of previous period | Amount of current period | Amount of previous period | |||
| Sichuan Changhong Electronics Holding Group Co., Ltd. | Changhong Air-conditioner | Rental | 143,252.58 | 125,548.80 | ||||||||
| Sichuan Changhong Electronics Holding Group Co., Ltd. | Changhong Air-conditioner | Staff dormitory | 1,920.00 | |||||||||
| Sichuan Jiahong Industrial Co., Ltd. | Changhong Air-conditioner | Staff dormitory | 399,176.91 | 464,805.24 | ||||||||
| Sichuan Changhong Electric Co., Ltd. | Changhong Air-conditioner | VISA Laboratories | 341,178.04 | 306,863.00 | 34,315.04 | 1,534,315.05 | ||||||
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1 ,2023 to December 31, 2023（Unless other wise specified, RMB for record in the statement)
| Lessor | Lessee | Type of assets | Rental charges for short-term and low-value assets (if any) | Variable lease payments not included in lease liabilities measurement (if any) | Rent paid | Interest expenses on lease liabilities assumed | Increased use right assets | |||||
| Amount of current period | Amount of previous period | Amount of current period | Amount of previous period | Amount of current period | Amount of previous period | Amount of current period | Amount of previous period | Amount of current period | Amount of previous period | |||
| Guangdong Changhong Electronics Co., Ltd. | Hong yuan Zhongshan | Staff dormitory | 80,355.16 | 104,751.85 | ||||||||
| Chengdu Changhong Electronic Technology Co., Ltd. | Hongmei Intelligent | Office | 678,008.96 | 603,257.97 | 47,945.48 | 88,127.19 | ||||||
| Sichuan Changhong Electric Co., Ltd. | Mianyang Meiling | Workshop leasing | 96,779.07 | 2,831,656.00 | 2,904,844.69 | 451,647.92 | 378,459.23 | 26,088,842.03 | 701,858.10 | |||
| Sichuan Jiahong Industrial Co., Ltd. | Mianyang Meiling | Staff dormitory | 32,599.20 | 34,379.52 | ||||||||
| Guangdong Changhong | Ridian Technology | Staff dormitory | 64,994.60 | 132,045.20 | ||||||||
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1 ,2023 to December 31, 2023（Unless other wise specified, RMB for record in the statement)
| Lessor | Lessee | Type of assets | Rental charges for short-term and low-value assets (if any) | Variable lease payments not included in lease liabilities measurement (if any) | Rent paid | Interest expenses on lease liabilities assumed | Increased use right assets | |||||
| Amount of current period | Amount of previous period | Amount of current period | Amount of previous period | Amount of current period | Amount of previous period | Amount of current period | Amount of previous period | Amount of current period | Amount of previous period | |||
Electronics Co.,Ltd.
| Electronics Co., Ltd. | ||||||||||||
| Chengdu Changhong Electric Technology Co., Ltd. | Meiling Life appliance | Office | 130,997.43 | 22,542.67 | ||||||||
| Changhong Huayi Compressor Co., Ltd. | Jiangxi Meiling | Staff dormitory | 115,810.67 | 140,483.38 | ||||||||
| Hefei Changhong Industry Co., Ltd. | Changhong Meiling | Plant | 1,209,008.90 | 908,010.50 | 953,113.00 | 1,019,690.31 | ||||||
| Hefei Changhong Industry Co., | Changhong Meiling | Sale site | 11,428.57 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.January 1 ,2023 to December 31, 2023（Unless other wise specified, RMB for record in the statement)
| Lessor | Lessee | Type of assets | Rental charges for short-term and low-value assets (if any) | Variable lease payments not included in lease liabilities measurement (if any) | Rent paid | Interest expenses on lease liabilities assumed | Increased use right assets | |||||
| Amount of current period | Amount of previous period | Amount of current period | Amount of previous period | Amount of current period | Amount of previous period | Amount of current period | Amount of previous period | Amount of current period | Amount of previous period | |||
Ltd.
| Ltd. | ||||||||||||
| Total | 1,075,394.19 | 1,367,654.70 | 5,025,536.86 | 4,416,113.16 | 1,487,021.44 | 1,486,276.73 | 27,623,157.08 | 701,858.10 |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2023 to 31 December 2023(Unless otherwise specified. RMB for record in the statement)
6. Related guarantee
| Secured party | Sponsored party | Maximum guarantee amount | Start | Date due | Completed (Y/N) |
| (in 10 thousand Yuan) | Fulfill | ||||
| Changhong Meiling | Meiling Group | 4,500.00 | 2023/5/11 | 2024/5/11 | No |
| Changhong Meiling | Meiling Group | 8,000.00 | 2023/7/12 | 2024/7/11 | No |
| Changhong Meiling | Jiangxi Meiling | 5,000.00 | 2022/4/18 | 2023/4/18 | Yes |
| Changhong Meiling | Meiling Life Appliances | 8,000.00 | 2023/2/22 | 2024/1/12 | No |
| Changhong Meiling | Meiling Life Appliances | 2,000.00 | 2023/4/24 | 2024/4/23 | No |
| Changhong Meiling | Meiling Life Appliances | 5,000.00 | 2023/4/21 | 2024/4/21 | No |
| Changhong Meiling | Meiling Life Appliances | 2,000.00 | 2023/11/3 | 2024/11/2 | No |
| Changhong Meiling | Meiling Life Appliances | 10,000.00 | 2023/12/1 | 2024/11/30 | No |
| Changhong Meiling | Meiling Life Appliances | 4,000.00 | 2023/12/15 | 2024/6/4 | No |
| Changhong Meiling | Meiling Life Appliances | 3,000.00 | 2022/1/26 | 2023/1/26 | Yes |
| Changhong Meiling | Meiling Life Appliances | 5,000.00 | 2022/3/16 | 2023/3/16 | Yes |
| Changhong Meiling | Meiling Life Appliances | 5,000.00 | 2022/9/22 | 2023/9/21 | Yes |
| Changhong Meiling | Meiling Life Appliances | 1,000.00 | 2022/9/8 | 2023/9/8 | Yes |
| Changhong Meiling | Meiling Life Appliances | 500.00 | 2022/8/26 | 2023/8/26 | Yes |
| Changhong Meiling | Meiling Life Appliances | 4,500.00 | 2022/12/8 | 2023/10/24 | Yes |
| Changhong Meiling | Meiling Life Appliances | 5,000.00 | 2022/10/26 | 2023/10/25 | No |
| Changhong Meiling | Meiling Life Appliances | 4,000.00 | 2021/12/9 | 2022/11/2 | Yes |
| Changhong Meiling | Changhong air-conditioner | 10,000.00 | 2023/1/17 | 2023/10/11 | No |
| Changhong Meiling | Changhong air-conditioner | 5,000.00 | 2023/1/17 | 2024/1/16 | No |
| Changhong Meiling | Changhong air-conditioner | 16,000.00 | 2023/2/27 | 2024/2/26 | No |
| Changhong Meiling | Changhong air-conditioner | 30,000.00 | 2023/3/16 | 2024/3/16 | No |
| Changhong Meiling | Changhong air-conditioner | 60,000.00 | 2023/3/18 | 2024/3/18 | No |
| Changhong Meiling | Changhong air-conditioner | 12,000.00 | 2023/4/14 | 2024/4/13 | No |
| Changhong Meiling | Changhong air-conditioner | 3,500.00 | 2023/6/28 | 2023/12/28 | Yes |
| Changhong Meiling | Changhong air-conditioner | 1,500.00 | 2023/7/5 | 2023/12/13 | No |
| Changhong Meiling | Changhong air-conditioner | 8,000.00 | 2022/3/18 | 2023/3/17 | Yes |
| Changhong Meiling | Changhong air-conditioner | 30,000.00 | 2022/4/18 | 2023/4/18 | Yes |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2023 to 31 December 2023(Unless otherwise specified. RMB for record in the statement)
| Secured party | Sponsored party | Maximum guarantee amount | Start | Date due | Completed (Y/N) |
| (in 10 thousand Yuan) | Fulfill | ||||
| Changhong Meiling | Changhong air-conditioner | 5,000.00 | 2021/9/24 | 2022/9/24 | Yes |
| Changhong Meiling | Changhong air-conditioner | 15,000.00 | 2021/12/7 | 2022/12/6 | Yes |
| Changhong Meiling | Ridian Technology | 4,000.00 | 2023/7/8 | 2024/7/8 | No |
| Changhong Meiling | Ridian Technology | 3,000.00 | 2022/3/25 | 2023/3/25 | Yes |
| Changhong Meiling | Ridian Technology | 4,000.00 | 2022/7/7 | 2023/7/7 | Yes |
| Changhong Meiling | Ridian Technology | 2,000.00 | 2022/10/25 | 2023/10/24 | Yes |
| Changhong Meiling | Ridian Technology | 3,500.00 | 2022/11/10 | 2023/11/9 | No |
| Changhong Meiling | Zhongke Meiling | 2,000.00 | 2022/9/20 | 2023/1/27 | Yes |
| Changhong Meiling | Zhongke Meiling | 5,000.00 | 2022/11/14 | 2023/6/19 | Yes |
| Changhong Meiling | Zhongshan Changhong | 6,000.00 | 2023/3/15 | 2024/3/15 | No |
| Changhong Meiling | Zhongshan Changhong | 10,000.00 | 2023/5/11 | 2024/5/10 | No |
| Changhong Meiling | Zhongshan Changhong | 10,000.00 | 2023/5/30 | 2024/5/29 | No |
| Changhong Meiling | Zhongshan Changhong | 7,000.00 | 2023/6/15 | 2024/6/14 | No |
| Changhong Meiling | Zhongshan Changhong | 10,000.00 | 2023/5/12 | 2024/5/12 | No |
| Changhong Meiling | Zhongshan Changhong | 20,000.00 | 2023/7/3 | 2024/7/3 | No |
| Changhong Meiling | Zhongshan Changhong | 5,000.00 | 2023/7/28 | 2024/7/27 | No |
| Changhong Meiling | Zhongshan Changhong | 15,000.00 | 2023/8/23 | 2024/8/23 | No |
| Changhong Meiling | Zhongshan Changhong | 5,000.00 | 2023/11/2 | 2024/11/2 | No |
| Changhong Meiling | Zhongshan Changhong | 2,000.00 | 2022/2/15 | 2023/2/14 | Yes |
| Changhong Meiling | Zhongshan Changhong | 18,000.00 | 2022/4/22 | 2023/4/22 | Yes |
| Changhong Meiling | Zhongshan Changhong | 6,000.00 | 2022/3/15 | 2023/3/15 | Yes |
| Changhong Meiling | Zhongshan Changhong | 10,000.00 | 2022/4/22 | 2023/4/22 | Yes |
| Changhong Meiling | Zhongshan Changhong | 7,000.00 | 2022/3/28 | 2023/3/29 | Yes |
| Changhong Meiling | Zhongshan Changhong | 13,000.00 | 2022/6/16 | 2023/6/16 | Yes |
| Changhong Meiling | Zhongshan Changhong | 20,000.00 | 2022/7/2 | 2023/7/2 | Yes |
| Changhong Meiling | Zhongshan Changhong | 5,000.00 | 2022/8/19 | 2023/8/19 | Yes |
| Changhong Meiling | Zhongshan Changhong | 15,000.00 | 2022/8/15 | 2023/8/14 | No |
| Zhongke Meiling | Lingan Medical | 1,000.00 | 2023/8/25 | 2024/8/24 | No |
| Zhongke Meiling | Lingan Medical | 1,000.00 | 2023/10/20 | 2024/10/20 | No |
| Zhongke Meiling | Anhui Tuoxing | 500.00 | 2022/6/27 | 2023/6/27 | Yes |
| Zhongke Meiling | Anhui Tuoxing | 1,000.00 | 2023/6/20 | 2024/6/4 | No |
| Zhongke Meiling | Anhui Tuoxing | 400.00 | 2023/8/15 | 2024/8/14 | No |
| Zhongke Meiling | Anhui Tuoxing | 1,000.00 | 2023/10/20 | 2024/10/20 | No |
| Counter guarrantee： |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2023 to 31 December 2023(Unless otherwise specified. RMB for record in the statement)
| Secured party | Sponsored party | Maximum guarantee amount | Start | Date due | Completed (Y/N) |
| (in 10 thousand Yuan) | Fulfill | ||||
| Meiling Group | Changhong Meiling | 4,500.00 | 2023/5/11 | 2024/5/11 | No |
| Meiling Group | Changhong Meiling | 8,000.00 | 2023/7/12 | 2024/7/11 | No |
| Meiling Group | Changhong Meiling | 5,000.00 | 2022/4/18 | 2023/4/18 | Yes |
| Meiling Life Appliances | Changhong Meiling | 8,000.00 | 2023/2/22 | 2024/1/12 | No |
| Meiling Life Appliances | Changhong Meiling | 2,000.00 | 2023/4/24 | 2024/4/23 | No |
| Meiling Life Appliances | Changhong Meiling | 5,000.00 | 2023/4/21 | 2024/4/21 | No |
Meiling LifeAppliances
| Meiling Life Appliances | Changhong Meiling | 2,000.00 | 2023/11/3 | 2024/11/2 | No |
| Meiling Life Appliances | Changhong Meiling | 10,000.00 | 2023/12/1 | 2024/11/30 | No |
| Meiling Life Appliances | Changhong Meiling | 4,000.00 | 2023/12/15 | 2024/6/4 | No |
| Meiling Life Appliances | Changhong Meiling | 3,000.00 | 2022/1/26 | 2023/1/26 | Yes |
| Meiling Life Appliances | Changhong Meiling | 5,000.00 | 2022/3/16 | 2023/3/16 | Yes |
| Meiling Life Appliances | Changhong Meiling | 5,000.00 | 2022/9/22 | 2023/9/21 | Yes |
| Meiling Life Appliances | Changhong Meiling | 1,000.00 | 2022/9/8 | 2023/9/8 | Yes |
| Meiling Life Appliances | Changhong Meiling | 500.00 | 2022/8/26 | 2023/8/26 | Yes |
| Meiling Life Appliances | Changhong Meiling | 4,500.00 | 2022/12/8 | 2023/10/24 | Yes |
| Meiling Life Appliances | Changhong Meiling | 5,000.00 | 2022/10/26 | 2023/10/25 | No |
| Meiling Life Appliances | Changhong Meiling | 4,000.00 | 2021/12/9 | 2022/11/2 | Yes |
| Changhong air-conditioner | Changhong Meiling | 10,000.00 | 2023/1/17 | 2023/10/11 | No |
| Changhong air-conditioner | Changhong Meiling | 5,000.00 | 2023/1/17 | 2024/1/16 | No |
| Changhong air-conditioner | Changhong Meiling | 16,000.00 | 2023/2/27 | 2024/2/26 | No |
| Changhong air-conditioner | Changhong Meiling | 30,000.00 | 2023/3/16 | 2024/3/16 | No |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2023 to 31 December 2023(Unless otherwise specified. RMB for record in the statement)
| Secured party | Sponsored party | Maximum guarantee amount | Start | Date due | Completed (Y/N) |
| (in 10 thousand Yuan) | Fulfill | ||||
| Changhong air-conditioner | Changhong Meiling | 60,000.00 | 2023/3/18 | 2024/3/18 | No |
| Changhong air-conditioner | Changhong Meiling | 12,000.00 | 2023/4/14 | 2024/4/13 | No |
| Changhong air-conditioner | Changhong Meiling | 3,500.00 | 2023/6/28 | 2023/12/28 | Yes |
| Changhong air-conditioner | Changhong Meiling | 1,500.00 | 2023/7/5 | 2023/12/13 | No |
| Changhong air-conditioner | Changhong Meiling | 8,000.00 | 2022/3/18 | 2023/3/17 | Yes |
| Changhong air-conditioner | Changhong Meiling | 30,000.00 | 2022/4/18 | 2023/4/18 | Yes |
| Changhong air-conditioner | Changhong Meiling | 5,000.00 | 2021/9/24 | 2022/9/24 | Yes |
| Changhong air-conditioner | Changhong Meiling | 15,000.00 | 2021/12/7 | 2022/12/6 | Yes |
| Ridian Technology | Changhong Meiling | 4,000.00 | 2023/7/8 | 2024/7/8 | No |
| Ridian Technology | Changhong Meiling | 3,000.00 | 2022/3/25 | 2023/3/25 | Yes |
| Ridian Technology | Changhong Meiling | 4,000.00 | 2022/7/7 | 2023/7/7 | Yes |
| Ridian Technology | Changhong Meiling | 2,000.00 | 2022/10/25 | 2023/10/24 | Yes |
| Ridian Technology | Changhong Meiling | 3,500.00 | 2022/11/10 | 2023/11/9 | No |
| Zhongke Meiling | Changhong Meiling | 2,000.00 | 2022/9/20 | 2023/1/27 | Yes |
| Zhongke Meiling | Changhong Meiling | 5,000.00 | 2022/11/14 | 2023/6/19 | Yes |
| Zhongshan Changhong | Changhong Meiling | 6,000.00 | 2023/3/15 | 2024/3/15 | No |
| Zhongshan Changhong | Changhong Meiling | 10,000.00 | 2023/5/11 | 2024/5/10 | No |
| Zhongshan Changhong | Changhong Meiling | 10,000.00 | 2023/5/30 | 2024/5/29 | No |
| Zhongshan Changhong | Changhong Meiling | 7,000.00 | 2023/6/15 | 2024/6/14 | No |
| Zhongshan Changhong | Changhong Meiling | 10,000.00 | 2023/5/12 | 2024/5/12 | No |
| Zhongshan Changhong | Changhong Meiling | 20,000.00 | 2023/7/3 | 2024/7/3 | No |
| Zhongshan Changhong | Changhong Meiling | 5,000.00 | 2023/7/28 | 2024/7/27 | No |
| Zhongshan Changhong | Changhong Meiling | 15,000.00 | 2023/8/23 | 2024/8/23 | No |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2023 to 31 December 2023(Unless otherwise specified. RMB for record in the statement)
| Secured party | Sponsored party | Maximum guarantee amount | Start | Date due | Completed (Y/N) |
| (in 10 thousand Yuan) | Fulfill | ||||
| Zhongshan Changhong | Changhong Meiling | 5,000.00 | 2023/11/2 | 2024/11/2 | No |
| Zhongshan Changhong | Changhong Meiling | 2,000.00 | 2022/2/15 | 2023/2/14 | Yes |
| Zhongshan Changhong | Changhong Meiling | 18,000.00 | 2022/4/22 | 2023/4/22 | No |
| Zhongshan Changhong | Changhong Meiling | 6,000.00 | 2022/3/15 | 2023/3/15 | Yes |
| Zhongshan Changhong | Changhong Meiling | 10,000.00 | 2022/4/22 | 2023/4/22 | Yes |
| Zhongshan Changhong | Changhong Meiling | 7,000.00 | 2022/3/28 | 2023/3/29 | Yes |
| Zhongshan Changhong | Changhong Meiling | 13,000.00 | 2022/6/16 | 2023/6/16 | Yes |
| Zhongshan Changhong | Changhong Meiling | 20,000.00 | 2022/7/2 | 2023/7/2 | Yes |
| Zhongshan Changhong | Changhong Meiling | 5,000.00 | 2022/8/19 | 2023/8/19 | Yes |
| Zhongshan Changhong | Changhong Meiling | 15,000.00 | 2022/8/15 | 2023/8/14 | No |
| Lingan Medical | Zhongke Meiling | 1,000.00 | 2023/8/25 | 2024/8/24 | No |
| Lingan Medical | Zhongke Meiling | 1,000.00 | 2023/10/20 | 2024/10/20 | No |
| Anhui Tuoxing | Zhongke Meiling | 500.00 | 2022/6/27 | 2023/6/27 | Yes |
| Anhui Tuoxing | Zhongke Meiling | 1,000.00 | 2023/6/20 | 2024/6/4 | No |
| Anhui Tuoxing | Zhongke Meiling | 400.00 | 2023/8/15 | 2024/8/14 | No |
| Anhui Tuoxing | Zhongke Meiling | 1,000.00 | 2023/10/20 | 2024/10/20 | No |
7. Assets transfer and debt reorganization of related parties
| Related party | Type | Current Period | Last Period |
| Sichuan Hongxin Software Co., Ltd. | Purchase and construction of fixed assets | 3,192,988.66 | 1,254,943.40 |
| Sichuan Hongxin Software Co., Ltd. | Purchase and construction of fixed assets | 3,061,404.42 | 5,668,396.24 |
| Sichuan Changhong Intelligent Manufacturing Technology Co., Ltd. | Purchase and construction of fixed assets | 2,100,406.26 | 536,783.19 |
| Sichuan Changhong Electric Holding Group Co., Ltd. | Purchase and construction of fixed assets | 1,698,113.21 | 2,264,150.94 |
| Sichuan Changhong Electric Co., Ltd. | Construction of fixed | 428,600.00 | 1,400,000.03 |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2023 to 31 December 2023(Unless otherwise specified. RMB for record in the statement)
| assets | |||
| Sichuan Qiruik Technology Co., Ltd. | Purchase and construction of fixed assets | 288,000.00 | 65,575.22 |
| Sichuan Changhong Jiahua Information Product Co., Ltd. | Purchase and construction of fixed assets | 275,800.17 | 394,336.28 |
| Chengdu Guigu Environment Technology Co., Ltd. | Purchase and construction of fixed assets | 50,600.00 | |
| Sichuan Zhiyijia Network Technology Co., Ltd. | Purchase and construction of fixed assets | 40,519.46 | 22,384.06 |
| Mianyang Science & Technology City Big Data Technology Co., Ltd. | Purchase and construction of fixed assets | 450,367.31 | |
| Guangdong Changhong Electric Co., Ltd. | Purchase and construction of fixed assets | 1,800.00 | |
| Sichuan Aoku Technology Co., Ltd. | Sale of fixed assets | 121,030.34 | |
| Total | 11,136,432.18 | 12,179,767.01 |
8.Other
| Name of company | Content | Current Period (in 10 thousand Yuan) | Last Period (in 10 thousand Yuan) |
| Yuanxin Financial Lease Co., Ltd. | Financing business | 47,232.36 | 40,942.87 |
9. Related transaction with Changhong Finance Company
(1) Saving balance
| Name of company | Ending balance | Opening balance | Interest income from bank saving in the period |
| Changhong Meiling Co., Ltd. | 2,052,187,201.79 | 1,576,180,731.79 | 55,927,448.19 |
| Sichuan Changhong Air-conditioner Co., Ltd | 977,689,247.58 | 975,985,071.65 | 9,442,854.40 |
| Zhongshan Changhong Electric Co., Ltd | 761,905,289.07 | 490,792,121.80 | 15,139,706.91 |
| 合肥长虹美菱生活电器有限公司 | 243,577,856.45 | 218,066,151.18 | 4,799,892.28 |
| Hefei Changhong Meiling Life Appliances Co., Ltd. | 167,225,376.64 | 112,954,489.66 | 1,888,440.19 |
| Ground Energy Heat Pump Tech. (Zhongshan) Co., Ltd. | 60,561,687.38 | 50,619,272.37 | 1,352,974.65 |
| Changhong Meiling Ridian Technology Co., Ltd. | 56,655,316.22 | 33,296,010.27 | 200,762.90 |
| Hebei Hongmao Daily Appliance Technology Co., Ltd. | 6,769,834.89 | 5,675.83 | |
| Hefei Meiling Group Holdings Limited | 304,516.48 | 207,918.41 | 10,355.85 |
| Anhui Tuoxing Technology Co., Ltd. | 7,358,942.16 | 84,076.99 | 15,330.04 |
| Mianyang Meiling Refrigeration Co., Ltd. | 13,743.00 | 21,366.13 | 61.24 |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2023 to 31 December 2023(Unless otherwise specified. RMB for record in the statement)
| Name of company | Ending balance | Opening balance | Interest income from bank saving in the period |
| Ground Energy Heat Pump Tech. Co., Ltd. | 13,260.69 | 17.12 | |
| Jiangxi Meiling Electric Appliance Co., Ltd. | 9,667.64 | 9,626.58 | 41.07 |
| Anhui Ling'an medical equipment Co., Ltd. | 825.26 | 0.08 | 0.91 |
| Total | 4,327,489,669.67 | 3,464,999,932.49 | 88,783,561.58 |
(2) Discounted bills
| Bank acceptance Discounted face amount | Bank acceptance Discounted amount | Discounting fees Amount of expenses | |
| Sichuan Changhong Air-conditioner Co., Ltd | 1,033,728,549.36 | 1,025,823,634.69 | 7,904,914.67 |
| Changhong Meiling Co., Ltd. | 657,198,568.01 | 654,852,590.83 | 2,345,977.18 |
| Hefei Changhong Meiling Life Appliances Co., Ltd. | 77,674,243.38 | 77,101,568.97 | 572,674.41 |
| Ground Energy Heat Pump Tech. (Zhongshan) Co., Ltd. | 8,650,000.00 | 8,527,558.31 | 122,441.69 |
| Changhong Meiling Ridian Technology Co., Ltd. | 3,373,116.42 | 3,338,859.99 | 34,256.43 |
| Zhongshan Changhong Electric Co., Ltd | 13,291,988.00 | 13,185,288.15 | 106,699.85 |
| Total | 1,793,916,465.17 | 1,782,829,500.94 | 11,086,964.23 |
(3) Issuance of invoices
| Name of company | Issuer | Bill amount | Types |
| Sichuan Changhong Air-conditioner Co., Ltd. | Sichuan Changhong Group Finance Co., Ltd. | 914,629,184.69 | Bank acceptance |
| Zhongshan Changhong Electric Co., Ltd. | Sichuan Changhong Group Finance Co., Ltd. | 327,452,556.31 | Bank acceptance |
| Ground Energy Heat Pump Tech. (Zhongshan) Co., Ltd. | Sichuan Changhong Group Finance Co., Ltd. | 139,455,669.44 | Bank acceptance |
| Changhong Meiling Co., Ltd. | Sichuan Changhong Group Finance Co., Ltd. | 128,561,000.00 | Bank acceptance |
| Hefei Changhong Meiling Life Appliances Co., Ltd. | Sichuan Changhong Group Finance Co., Ltd. | 85,660,685.29 | Bank acceptance |
| Zhongke Meiling Cryogenic Technology Co., Ltd. | Sichuan Changhong Group Finance Co., Ltd. | 34,517,933.96 | Bank acceptance |
| Hefei Meiling Group Holdings Limited | Sichuan Changhong Group Finance Co., Ltd. | 32,688,754.50 | Bank acceptance |
| Changhong Meiling Ridian Technology Co., Ltd. | Sichuan Changhong Group Finance Co., Ltd. | 4,673,370.72 | Bank acceptance |
| Anhui Tuoxing Technology Co., Ltd. | Sichuan Changhong Group Finance Co., Ltd. | 248,235.95 | Bank acceptance |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2023 to 31 December 2023(Unless otherwise specified. RMB for record in the statement)
| Name of company | Issuer | Bill amount | Types |
| Anhui Ling'an medical equipment Co., Ltd. | Sichuan Changhong Group Finance Co., Ltd. | 351,295.87 | Bank acceptance |
| Total | 1,668,238,686.73 |
(4) Credit or other financial services
| Name of company | Transaction content | Amount incurred this year |
| Sichuan Changhong Air Conditioning Co., Ltd | Guarantee letter | 3,077,160.00 |
| Anhui Tuoxing Technology Co., Ltd | Guarantee letter | 330,000.00 |
| Total | 3,407,160.00 |
(5) Borrowings: Nil
(6) Receivable factoring: Nil
10.Remuneration for key management
| Item | Current Year (In 10 thousand yuan) | Last Year (In 10 thousand yuan) |
| Total remuneration | 893.76 | 767.09 |
| Including: performance incentive fund |
(iii) Come and go balance with related parties
1. Receivable items
| Item | Related party | Balance at year-end | Balance at year-begin | ||
| Book balance | Bad debt provision | Book balance | Bad debt provision | ||
| Account receivable | Sichuan Zhiyijia Network Technology Co., Ltd. | 188,235,530.60 | 110,410,176.95 | 440,272,480.19 | 68,442,866.04 |
| Account receivable | CHANGHONG(HK)TRADINGLIMITED | 117,003,398.60 | 60,041,559.36 | ||
| Account receivable | CHANGHONGELECTRIC(AUSTRALIA)PTY.LTD. | 79,488,591.21 | 24,835,082.91 | ||
| Account receivable | CHANGHONG(HK)TRADINGLIMITED | 67,734,903.25 | 3,339,617.94 | 53,357,857.70 | 1,137,912.73 |
| Account receivable | Changhong Ruba Electric Company (Private) Ltd. | 40,856,357.09 | 40,856,357.09 | 41,456,983.76 | 41,456,983.76 |
| Account receivable | Changhong Europe Electric s.r.o | 31,860,854.17 | 9,350,935.09 | ||
Accountreceivable
| Account receivable | Orion.PDP.Co.,ltd | 13,506,278.22 | 18,169,829.16 | 96,826.72 |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2023 to 31 December 2023(Unless otherwise specified. RMB for record in the statement)
| Item | Related party | Balance at year-end | Balance at year-begin | ||
| Book balance | Bad debt provision | Book balance | Bad debt provision | ||
| Account receivable | Sichuan Aichuang Technology Co., Ltd. | 3,195,467.74 | |||
| Account receivable | Sichuan Changhong Electric Appliance Co., Ltd | 900,179.64 | 944,871.90 | ||
| Account receivable | Sichuan Changhong Intelligent Manufacturing Technology Co., Ltd | 727,500.00 | |||
| Account receivable | Yuanxin Financing Lease Co., Ltd. | 558,665.14 | 545,991.98 | ||
| Account receivable | Changhong Huayi Compressor Co., Ltd. | 519,071.54 | 432,726.15 | ||
| Account receivable | Sichuan Service Exp. Appliance Service Chain Co., Ltd. | 349,069.73 | 288,033.65 | ||
| Account receivable | Sichuan Huafeng Technology Co., Ltd. | 176,400.00 | |||
| Account receivable | Sichuan Changhong Model Technology Co., Ltd. | 176,175.52 | 17,580.00 | ||
| Account receivable | Sichuan Changhong Real Estate Co., Ltd. | 119,213.45 | |||
| Account receivable | Sichuan Changhong Xingwang Technology Co., Ltd. | 112,000.00 | |||
| Account receivable | Sichuan Changhong Network Technology Co., Ltd. | 96,000.00 | |||
| Account receivable | Sichuan Changhong Lithium Battery Technology Co., Ltd. | 30,600.00 | |||
| Account receivable | Mianyang Huafeng Hulian Technology Co., Ltd. | 8,800.00 | |||
| Account receivable | Sichuan Changhong Electric Part Co., Ltd. | 954.00 | |||
| Account receivable | Sichan Changhong Electric Holdings Group Co., Ltd. | 720.00 | 240,063.11 | ||
| Account receivable | CHANGHONG ELECTRIC MIDDLE EAST FZCO | 755,784.47 | |||
| Account receivable | Ground Energy Heat Pump Tech. Co., Ltd. | 342,203.53 | 57,322.40 | ||
| Account receivable | Guangdong Changhong Electric Co., Ltd. | 147,629.98 | |||
| Account receivable | Sichuan Changhong Jijia Fine Co., Ltd. | 8,204.00 | |||
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2023 to 31 December 2023(Unless otherwise specified. RMB for record in the statement)
| Item | Related party | Balance at year-end | Balance at year-begin | ||
| Book balance | Bad debt provision | Book balance | Bad debt provision | ||
| Account receivable | Sichuan Changhong Minsheng Logistics Co., Ltd. | 4,305.20 | |||
| Account paid in advance | Chengdu Changhong Electric Technology Co., Ltd. | 381,126.07 | |||
| Account paid in advance | Sichuan Ailian Technology Co., Ltd. | 53,247.60 | 178.22 | ||
| Account paid in advance | Sichuan Changhong Minsheng Logistics Co., Ltd. | 8,396.00 | |||
| Account paid in advance | Hefei Changhong Industry Co., Ltd. | 2,986.27 | |||
| Account paid in advance | Sichuan Changhong Electric Co., Ltd. | 19.17 | |||
| Account paid in advance | Sichuan Changhong Property Service Co., Ltd. | 1,613.85 | |||
| Other account receivable | Sichuan Service Exp. Appliance Service Chain Co., Ltd. | 313,490.41 | 42,202.32 | ||
| Other account receivable | Sichuan Yizhijia Network Technology Co., Ltd. | 303,019.00 | 200,000.00 | ||
| Other account receivable | Sichuan Changhong Property Service Co., Ltd. | 2,904.93 | 1,291.08 | ||
| Other account receivable | Changhong Huayi Compressor Co., Ltd. | 267,000.00 | |||
| Other account receivable | Sichuan Changhong Jiechuang Lithium Battery Technology Co., Ltd. | 129,000.00 | |||
| Other account receivable | Sichuan Changhong Electric Appliance Co., Ltd | 60,000.00 | |||
| Other account receivable | Sichuan Changhong Jiajia Fine Co., Ltd. | 17,232.50 | |||
| Total | 546,721,919.35 | 154,606,151.98 | 651,930,640.11 | 111,191,911.65 | |
2.Payable items
| Item | Related party | Balance at year-end | Balance at year-begin |
| Account payable | Sichuan Changhong Moulding Tech. Co., Ltd. | 173,023,852.05 | 102,735,433.69 |
| Account payable | Changhong Huayi Compressor Co., Ltd. | 117,609,190.18 | 21,947,957.79 |
| Account payable | Sichuan Aichuang Technology Co., Ltd. | 56,579,812.80 | 13,416,872.06 |
| Account payable | Sichuan Changhong Jijia Fine Co., Ltd. | 32,211,531.65 | 48,446,852.70 |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2023 to 31 December 2023(Unless otherwise specified. RMB for record in the statement)
| Item | Related party | Balance at year-end | Balance at year-begin |
| Account payable | Sichuan Changhong Electric Holdings Group Co., Ltd. | 23,732,724.50 | 12,932.00 |
| Account payable | Changhong Huayi Compressor Co., Ltd. | 17,976,156.76 | 14,948,871.57 |
| Account payable | Mianyang Haili Appliance Co., Ltd. | 17,723,765.52 | 7,021,268.99 |
| Account payable | Sichuan Aoku Technology Co., Ltd. | 14,614,765.93 | 8,194,344.79 |
| Account payable | Sichuan Changhong Package Printing Co., Ltd. | 14,430,893.66 | 20,626,143.74 |
| Account payable | Changhong Ruba Electric Company (Private) Ltd. | 13,195,411.19 | 15,632,092.38 |
| Account payable | Changhong International Holdings (Hong Kong) Co., Ltd. | 8,933,631.46 | 17,634,983.97 |
| Account payable | Sichuan Changhong Minsheng Logistics Co., Ltd. | 4,022,048.97 | 1,633,873.17 |
| Account payable | Sichuan Changhong Electronic Products Co., Ltd. | 3,801,344.25 | 2,892,627.07 |
| Account payable | Sichuan Changhong Intelligent Manufacturing Technology Co., Ltd. | 2,884,803.49 | 5,027,626.73 |
| Account payable | Sichuan Changhong Electric Co., Ltd. | 2,863,953.34 | 24,051,245.19 |
| Account payable | Sichuan Ailian Technology Co., Ltd. | 1,721,318.59 | 2,098,307.00 |
| Account payable | Guangdong Changhong Electric Co., Ltd. | 1,554,593.15 | 1,152,123.68 |
| Account payable | PT.CHANGHONG.ELECTRIC INDONESIA | 1,514,130.31 | |
| Account payable | Sichuan Changhong Device Technology Co., Ltd. | 1,148,884.00 | 1,728,816.01 |
| Account payable | Sichuan Service Exp. Appliance Service Chain Co., Ltd. | 725,473.65 | 754,759.55 |
| Account payable | Sichuan Hongxin Software Co., Ltd. | 451,301.89 | 490,315.10 |
| Account payable | Sichuan Changhong Intelligent Manufacturing Technology Co., Ltd. | 270,846.58 | 670,179.94 |
| Account payable | Sichuan Changhong New Energy Technology Co., Ltd. | 225,732.08 | 27,120.00 |
| Account payable | Sichuan Changhong International Hotel Co., Ltd. | 146,276.00 | 99,873.00 |
| Account payable | Chengdu Guigu Environmental Tech. Co., Ltd | 57,178.00 | 34,717.86 |
| Account payable | Sichuan Zhiyijia Network Technology Co., Ltd. | 35,267.63 | 8,752.84 |
| Account payable | Sichuan Qiruik Technology Co., Ltd. | 32,000.00 | 6,805.20 |
| Account payable | Sichuan Hongwei Technology Co., Ltd. | 5,492.64 | |
| Account payable | Sichuan Jiahong Industry Co., Ltd. | 396.00 | 300.00 |
| Account payable | 081 Electronic Group Co., Ltd. | 53,026.90 | |
| Account payable | Sichuan Hongyu Metal Manufacturing Co., Ltd. | 14,662.40 | |
| Account payable | Hefei Changhong Industrial Co., Ltd. | 13,283.74 | |
| Account payable | Sichuan Changhong Source Co., Ltd. | 1,831.62 | |
| Contract liability | Sichuan Zhiyijia Network Technology Co., Ltd. | 32,073,215.34 | 70,485.08 |
| Contract liability | Sichuan Changhong Electric Appliance Co., Ltd | 353,941.29 | 447,676.77 |
| Contract liability | CHANGHONG ELECTRIC MIDDLE EAST FZCO | 90,332.93 | 92,761.51 |
| Contract liability | Sichuan Baiku Technology Co., Ltd. | 22,932.74 | 71,396.02 |
| Contract liability | Sichuan Changhong Minsheng Logistics Co., Ltd. | 14,654.86 | |
| Contract liability | Sichuan Service Exp. Appliance Service Chain Co., Ltd. | 10,727.89 | 10,174.94 |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2023 to 31 December 2023(Unless otherwise specified. RMB for record in the statement)
| Item | Related party | Balance at year-end | Balance at year-begin |
| Contract liability | Sichuan Ansifei Technolgy Co., Ltd. | 2,646.19 | 2,736.19 |
| Contract liability | Sichuan Changhong Moulding Tech. Co., Ltd. | 2,415.93 | |
| Contract liability | CHANGHONG(HK)TRADINGLIMITED | 908.66 | 893.51 |
| Contract liability | Changhong International Holdings（Hongkong）Co., Ltd. | 713.44 | |
| Contract liability | 081 Electronic Group Co., Ltd. | 22.61 | 22.61 |
| Contract liability | Sichuan Aichuang Technology Co., Ltd. | 1,961,333.35 | |
| Contract liability | Sichuan Changhong Intelligence Manufacturing Technology Co., Ltd. | 1,120,221.22 | |
| Contract liability | Chengdu Guigu Environmental Tech. Co., Ltd | 171,499.69 | |
| Contract liability | Sichuan Qisai Microelectronic Co., Ltd. | 65,599.81 | |
| Contract liability | Yibin Hongxing Electric Co., Ltd. | 43,362.83 | |
| Contract liability | Hong Yuan Ground Energy Heat Tech. Co., Ltd | 39,343.58 | |
| Contract liability | Sichuan Changhong Source Co., Ltd | 27,300.88 | |
| Contract liability | Sichuan Changhong Electric Holding Group Co., Ltd. | 4,495.58 | |
| Contract liability | Sichuan Changhong International Hotel Co., Ltd | 0.88 | |
| Contract liability | Guangyuan Changhong Electric Technology Co., Ltd. | 0.03 | |
| Lease liability | Sichuan Changhong Electric Co., Ltd. | 27,418,257.97 | 9,129,947.19 |
| Lease liability | Hefei Changhong Industrial Co., Ltd. | 16,678,869.72 | 17,887,878.62 |
| Lease liability | Chengdu Changhong Electronic Technology Co., Ltd. | 381,126.07 | 10,468.90 |
| Other payable | Sichuan Changhong Minsheng Logistics Co., Ltd. | 132,815,918.64 | 111,049,082.37 |
| Other payable | Sichuan Service Exp. Appliance Service Chain Co., Ltd. | 82,400,851.21 | 80,970,437.14 |
| Other payable | Yuanxin Financial Lease Co., Ltd. | 61,295,062.03 | 79,112,334.67 |
| Other payable | Sichuan Changhong Moulding Tech. Co., Ltd. | 2,559,981.65 | 2,700,501.98 |
| Other payable | Changhong Huayi Compressor Co., Ltd. | 1,903,400.00 | 1,898,900.00 |
| Other payable | Sichuan Aichuang Technology Co., Ltd. | 1,443,020.00 | 100,000.00 |
| Other payable | Sichuan Hongxin Software Co., Ltd. | 594,516.98 | 160,000.00 |
| Other payable | Sichuan Qiruik Technology Co., Ltd. | 585,767.70 | 479,244.80 |
| Other payable | Sichuan Zhiyijia Network Technology Co., Ltd. | 566,063.25 | 429,131.05 |
| Other payable | Sichuan Changhong Jijia Fine Co., Ltd. | 425,492.32 | 400,500.00 |
| Other payable | Sichuan Changhong Electric Holding Group Co., Ltd. | 393,156.00 | |
| Other payable | Sichuan Aoku Technology Co., Ltd. | 260,212.20 | 189,859.40 |
| Other payable | Sichuan Changxin Refrigeration Parts Co., Ltd. | 173,907.41 | 46,702.03 |
| Other payable | Sichuan Changhong Package Printing Co., Ltd. | 139,699.18 | 50,000.00 |
| Other payable | Sichuan Changhong Intelligence Manufacturing technology Co., Ltd. | 109,596.00 | 255,867.10 |
| Other payable | Sichuan Changhong Electric Appliance Co., Ltd | 58,735.52 | 81,251.02 |
| Other payable | Sichuan Ailian 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 | 50,000.00 |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2023 to 31 December 2023(Unless otherwise specified. RMB for record in the statement)
| Item | Related party | Balance at year-end | Balance at year-begin |
| Other payable | Sichuan Changhong New Energy Technology Co., Ltd. | 50,000.00 | |
| Other payable | Guangdong Changhong Electric Co., Ltd. | 25,113.76 | 38,429.50 |
| Other payable | Sichuan Changhong Precision Electronic Technology Co., Ltd | 734.43 | |
| Other payable | Sichuan Changhong Device Technology Co., Ltd. | 29.70 | |
| Other payable | Sichuan Jiahong Industrial Co., Ltd. | 18.00 | 74,316.41 |
| Other payable | Sichuan Changhong Jineng Sunshine Technology Co., Ltd. | 500,000.00 | |
| Other payable | CHANGHONG(HK)TRADINGLIMITED | 29,808.54 | |
| Total | 874,494,817.89 | 621,251,965.88 | |
(iv) Commitments from related parties: Nil
XIII. Share-based payment: Nil
XIV. Contingency
1. Pending action or possible liabilities formed from arbitration
In November 2021, Zhejiang Teruisi Pharmaceutical Co., Ltd. filed a lawsuit against Zhongke Meiling for the"Contract for Cold Storage Design, Equipment Procurement and Installation Construction". Currently, a third-partyengineering quality appraisal agency is conducting quality appraisal of the objects under the contract, the boot-upand operation test has been initially completed, and Zhongke Meiling intends to advocate maintenance of the coldstorage project, and the maintenance cost is estimated to be 1,720,534.42 yuan.As of December 31, 2023, apart from the aforementioned lawsuits, some of our subsidiaries have been defendantsin certain legal proceedings and plaintiffs in other lawsuits that arise in our daily business operations. Although theoutcome of these contingencies, legal proceedings, or other lawsuits cannot be determined at present, themanagement believes that any resulting liabilities will not have a significant negative impact on the financialcondition or operating performance of the company.
2. Contingency from external guarantee: Nil
3. Other contingency: Nil
XV. Commitments: Nil
XVI. Events occurring after the balance sheet date
1. Important non-adjustment items: Nil
2. Profit distribution:
According to the audit by ShineWing Certified Public Accountants (Special General Partnership), in 2023, the netprofit realized in individual financial statements of the parent company was RMB 358345033.36. As of December31, 2023, the cumulative undistributed profit in individual financial statements of the parent company was RMB
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2023 to 31 December 2023(Unless otherwise specified. RMB for record in the statement)
1294109238.10. In addition, in the consolidated financial statements of the company for the year 2023, the net profitattributable to the owners of the parent company was 741038108.54 yuan. As of December 31, 2023, the cumulativeundistributed profit in the consolidated financial statements was 1521759836.64 yuan.According to relevant regulations, the distribution of company profits should be based on the profits available fordistribution by the parent company, and follow the principle of distributing the lower of the cumulative undistributedprofits in the consolidated financial statements and the parent company's financial statements. Therefore, thedistributable profit for 2023 is the accumulated undistributed profit of RMB 1294109238.10 in individual financialstatements of the parent company.Based on relevant regulations and the provisions of the Company's Articles of Association, taking into account theinterests of shareholders and the long-term development needs of the company, it is proposed to:
Based on the total share capital of 1029923715 shares as of December 31, 2023, the company will distribute a cashdividend of 3 yuan (including tax) to all shareholders for every 10 shares, without bonus shares or conversion ofreserve funds into share capital. It is expected to distribute a cash dividend of 30897714.50 yuan.After this distribution, it is expected that the remaining cumulative undistributed profit of the parent company willbe 985132123.60 yuan, and the remaining undistributed profit will be carried forward for distribution in future years.The aforementioned plan has been reviewed and approved by the 42nd meeting of the 10th Board of Directors ofthe company and is still awaiting approval by the shareholders' meeting.
3.Major sales return: Nil
4.Other than the above mentioned events, the Company have no other events occurred after balance sheet date.
XVII. 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 RMB 10,000
| Item | Refrigerator, freezer Washing machine | Air-conditioner | Small home appliances | Other | Sales in branch | Total |
| Operation income | 1,058,627.40 | 1,173,949.73 | 208,366.86 | 41,045.98 | 57,222.07 | 2,424,767.90 |
| Including: foreign trade income | 1,049,061.00 | 1,173,863.42 | 188,693.36 | 13,150.12 | 2,424,767.90 | |
| Income from transactions between divisions | 9,566.39 | 86.32 | 19,673.50 | 27,895.86 | 57,222.07 |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2023 to 31 December 2023(Unless otherwise specified. RMB for record in the statement)
| Item | Refrigerator, freezer Washing machine | Air-conditioner | Small home appliances | Other | Sales in branch | Total |
| Operation expenses | 1,035,343.27 | 1,144,115.11 | 202,976.31 | 37,262.27 | 57,265.63 | 2,362,431.33 |
| Operation profit | 23,284.13 | 29,834.62 | 5,390.55 | 3,783.71 | -43.56 | 62,336.57 |
| Total assets | 1,370,097.26 | 621,813.60 | 87,961.23 | 23,412.66 | 180,358.35 | 1,922,926.40 |
| Total liability | 811,662.26 | 472,775.91 | 59,926.46 | 8,345.70 | 35,134.80 | 1,317,575.53 |
| Supplementary information | ||||||
| Depreciation and amortization expenses | 21,777.76 | 15,049.37 | 369.27 | 738.59 | 2.76 | 37,932.23 |
| Capital expenditure | 15,766.85 | 11,608.52 | 50.81 | 1,224.86 | 5.20 | 28,645.84 |
Total assets do not include deferred income tax assets, and total liabilities exclude deferred income tax liabilities.
7. Other major transactions and events shows impact on investor’s decision-making: Nil
XVIII. Notes to main items of financial statement of parent company
1.Account receivable
(1) Presented according to the bad debt accrual method
| Account age | Balance at year-end | Balance at year-begin |
| Within 1 year（Including 1 year） | 1,455,451,760.05 | 1,148,810,442.19 |
| Including： | ||
| Within 3 months (3 months included) | 1,405,485,686.08 | 1,100,472,354.68 |
| More than 3 months and less than 6 months (6 months included) | 40,372,699.21 | 30,307,002.60 |
| Over 6 months and within one year (One year included) | 9,593,374.76 | 18,031,084.91 |
| Over one year - within 2 years (2 years included) | 13,012,239.58 | 31,469,257.52 |
| Over 2 years - within 3 years (3 years included) | 26,677,206.61 | 8,570,995.44 |
| Over 3 years | 24,592,353.91 | 16,093,304.66 |
| Total | 1,519,733,560.15 | 1,204,943,999.81 |
(2) Category of account receivable by bad debt accrual
| Category | Amount at year-end | ||||
| Book balance | Bad debt provision | Book value | |||
| Amount | Ratio (%) | Amount | Ratio (%) | ||
| Account receivable that withdrawal | 876,212,956.55 | 57.66 | 6.15 | 822,298,060.28 | |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2023 to 31 December 2023(Unless otherwise specified. RMB for record in the statement)
| Category | Amount at year-end | ||||
| Book balance | Bad debt provision | Book value | |||
| Amount | Ratio (%) | Amount | Ratio (%) | ||
| bad debt provision by single item | 53,914,896.27 | ||||
| Including: current payment with related party | 803,660,757.46 | 52.88 | 39,553,880.21 | 4.92 | 764,106,877.25 |
| Account receivable with letter of credit | 52,483,325.93 | 3.46 | 52,483,325.93 | ||
| Account receivable with single minor amount but withdrawal single item bad debt provision | 20,068,873.16 | 1.32 | 14,361,016.06 | 71.56 | 5,707,857.10 |
| Account receivable withdrawal bad debt provision by portfolio | 643,520,603.60 | 42.34 | 14,023,130.16 | 2.18 | 629,497,473.44 |
| Including: account receivable of engineering customers | |||||
| Receivables other than engineering customers | 643,520,603.60 | 42.34 | 14,023,130.16 | 2.18 | 629,497,473.44 |
| Total | 1,519,733,560.15 | 100.00 | 67,938,026.43 | 4.47 | 1,451,795,533.72 |
Continued
| Category | Amount at year-begin | ||||
| Book balance | Bad debt provision | Book value | |||
| Amount | Ratio (%) | Amount | Ratio (%) | ||
| Account receivable that withdrawal bad debt provision by single item | 966,219,951.36 | 80.19 | 41,766,187.59 | 4.32 | 924,453,763.77 |
| Including: current payment with related party | 930,280,151.88 | 77.21 | 40,223,800.95 | 4.32 | 890,056,350.93 |
| Account receivable with letter of credit | 28,689,555.75 | 2.38 | 28,689,555.75 | ||
| Account receivable with single minor amount but withdrawal single item bad debt provision | 7,250,243.73 | 0.60 | 1,542,386.64 | 21.27 | 5,707,857.09 |
| Account receivable withdrawal bad debt provision by portfolio | 238,724,048.45 | 19.81 | 17,616,043.17 | 7.38 | 221,108,005.28 |
| Including: account receivable of engineering customers | |||||
| Receivables other than engineering customers | 238,724,048.45 | 19.81 | 17,616,043.17 | 7.38 | 221,108,005.28 |
| Total | 1,204,943,999.81 | 100.00 | 59,382,230.76 | 4.93 | 1,145,561,769.05 |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2023 to 31 December 2023(Unless otherwise specified. RMB for record in the statement)
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 singlereceivables, and withdrawal bad debt provision by combination shows no risk characteristic of the receivables, 9clients involved.
2) Account receivable withdrawal bad debt provision by portfolio
A.Account receivable of engineering customers
| Account age | Balance at year-end | ||
| Book balance | Bad debt provision | Provision ratio (%) | |
| Within 3 months (3 months included) | 616,484,217.92 | 6,164,842.18 | 1.00 |
| More than 3 months and less than 6 months (6 months included) | 10,991,345.13 | 1,099,134.51 | 10.00 |
| Over 6 months and within one year (One year included) | 9,190,814.21 | 1,838,162.84 | 20.00 |
| Over one year - within 2 years (2 years included) | 2,053,806.51 | 1,026,903.26 | 50.00 |
| Over 2 years - within 3 years (3 years included) | 4,531,662.28 | 3,625,329.82 | 80.00 |
| Over 3 years | 268,757.55 | 268,757.55 | 100.00 |
| Total | 643,520,603.60 | 14,023,130.16 | — |
Continued
| Account age | Balance at year-begin | ||
| Book balance | Bad debt provision | Provision ratio (%) | |
| Within 3 months (3 months included) | 201,773,944.94 | 2,017,739.45 | 1.00 |
| More than 3 months and less than 6 months (6 months included) | 9,319,360.50 | 931,936.05 | 10.00 |
| Over 6 months and within one year (One year included) | 5,821,154.56 | 1,164,230.91 | 20.00 |
| Over one year - within 2 years (2 years included) | 13,330,951.73 | 6,665,475.87 | 50.00 |
| Over 2 years - within 3 years (3 years included) | 8,209,879.17 | 6,567,903.34 | 80.00 |
| Over 3 years | 268,757.55 | 268,757.55 | 100.00 |
| Total | 238,724,048.45 | 17,616,043.17 | |
(3) Bad debt provision of accounts receivable this year
| Category | Balance at year-begin | Changes this year | Balance at year-end | ||
| Accrual | Withdrawal or reversal | Resale or write-off | |||
| Bad debt provision | 59,382,230.76 | 10,411,585.73 | 1,855,790.06 | 67,938,026.43 | |
| Total | 59,382,230.76 | 10,411,585.73 | 1,855,790.06 | 67,938,026.43 | |
(4) Top five receivables collected by arrears party amounting to 812,183,738.76 yuan in total, accounted for
53.44% of the receivables of current year-end, the bad debt provision accrual correspondingly amounting to1,965,769.40 yuan at year-end balance.
2. Other account receivable
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2023 to 31 December 2023(Unless otherwise specified. RMB for record in the statement)
| Item | Balance at year-end | Balance at year-begin | |||
| Other account receivable | 61,841,221.91 | 29,903,408.82 | |||
| Total | 61,841,221.91 | 29,903,408.82 | |||
| Total | 82,953,808.97 | 88,354,803.24 | |||
(1) Category of other account receivable
| Nature | Book balance at year-end | Book balance at year-begin |
| Export rebate | 41,179,511.61 | 12,703,975.11 |
| Cash deposit | 4,109,987.09 | 2,528,111.92 |
| Loans of employee’s pretty cash | 10,727,346.46 | 7,342,858.38 |
| Related party not in consolidation statement | 5,957,370.23 | 5,162,387.15 |
| Advance money temporary | 42,202.32 | |
| Other | 456,265.42 | 2,173,873.94 |
| Total | 62,430,480.81 | 29,953,408.82 |
(2) By account age
| Account age | Balance at year-end | Balance at year-begin |
| Within 1 year（Including 1 year） | 57,173,854.18 | 25,568,594.52 |
| Including： | ||
| Within 3 months (3 months included) | 53,994,269.35 | 24,770,884.16 |
| More than 3 months and less than 6 months (6 months included) | 1,161,881.37 | 261,521.34 |
| Over 6 months and within one year (One year included) | 2,017,703.46 | 536,189.02 |
| Over one year - within 2 years (2 years included) | 1,206,412.81 | 1,445,151.00 |
| Over 2 years - within 3 years (3 years included) | 1,288,721.92 | 1,360,620.00 |
| Over 3 years | 2,761,491.90 | 1,579,043.30 |
| Total | 62,430,480.81 | 29,953,408.82 |
(3) Category of Other account receivable bad debt reserves
| Category | Amount at year-end | ||||
| Book balance | Bad debt provision | Book value | |||
| Amount | Ratio (%) | Amount | Ratio (%) | ||
| That withdrawal bad debt provision by single item | 62,430,480.81 | 100.00 | 589,258.90 | 0.94 | 61,841,221.91 |
| In which: other receivables with no major individual amount but bad debt provision accrued individually | 15,293,598.97 | 24.5 | 589,258.90 | 3.85 | 14,704,340.07 |
| Export tax refund | 41,179,511.61 | 65.96 | 41,179,511.61 | ||
| Related party funds | 5,957,370.23 | 9.54 | 5,957,370.23 | ||
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2023 to 31 December 2023(Unless otherwise specified. RMB for record in the statement)
| Category | Amount at year-end | ||||
| Book balance | Bad debt provision | Book value | |||
| Amount | Ratio (%) | Amount | Ratio (%) | ||
| Bad debt provision accrued by portfolio | |||||
| In which: other receivables accrued by aging portfolio | |||||
| Total | 62,430,480.81 | 100.00 | 589,258.90 | 0.94 | 61,841,221.91 |
Continued
| Category | Balance at year-begin | ||||
| Book balance | Bad debt provision | Book value | |||
| Amount | Ratio (%) | Amount | Ratio (%) | ||
| That withdrawal bad debt provision by single item | 29,953,408.82 | 100.00 | 50,000.00 | 0.17 | 29,903,408.82 |
| In which: other receivables with no major individual amount but bad debt provision accrued individually | 12,044,844.24 | 40.21 | 50,000.00 | 0.42 | 11,994,844.24 |
| Export tax refund | 12,703,975.11 | 42.41 | 12,703,975.11 | ||
| Related party funds | 5,204,589.47 | 17.38 | 5,204,589.47 | ||
| Bad debt provision accrued by portfolio | |||||
| In which: other receivables accrued by aging portfolio | |||||
| Total | 29,953,408.82 | 100.00 | 50,000.00 | 0.17 | 29,903,408.82 |
1) Accrual of bad debt provision for other receivables
| 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. 2023 | 50,000.00 | 50,000.00 | ||
| Book balance of other account receivable in Current Year as at 1 Jan. 2023 | — | — | — | — |
| --Transfer to the second stage | ||||
| -- Transfer to the third stage | ||||
| -- Reversal to the second stage |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2023 to 31 December 2023(Unless otherwise 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) | ||
| -- Reversal to the first stage | ||||
| Provision in Current Year | 539,258.90 | 539,258.90 | ||
| Reversal in Current Year | ||||
| Conversion in Current Year | ||||
| Write off in Current Year | ||||
| Other change | ||||
| Balance as at 31 Dec. 2023 | 589,258.90 | 589,258.90 |
(4)Bad debt provision for other receivables accrued, recovered or reversed this year
| Category | Year-beginning | Amount of change this year | Year-end | |||
| Accrual | Recovery or reverasl | Write-off or cancellation | Other | |||
| Bad debt provision | 50,000.00 | 539,258.90 | 589,258.90 | |||
| Total | 50,000.00 | 539,258.90 | 589,258.90 | |||
(5)Other account receivable actually written-off in Current Year:N/A
(6) Top 5 other receivables collected by arrears party at balance of period-end
| Name | Nature | Balance at year-end | Account age | Proportion in total other receivables ending balance (%) | Bad debt provision Balance at year-end |
| Unit I | Export rebates | 41,179,511.61 | Within 1 year | 65.96 | |
| Unit II | Employee petty cash | 2,639,979.48 | Within 1 year, 2-3 years, Over 3 years | 4.23 | |
| Unit III | Employee petty cash | 2,439,621.17 | Within 1 year | 3.91 | |
| Unit IV | Employee petty cash | 1,021,194.03 | Within 1 year | 1.64 | |
| ,Unit V | Employee petty cash | 669,693.08 | Within 1 year, 2-3 years, Over 3 years | 1.07 | |
| Total | 47,949,999.37 | 76.81 |
(7) There are no receivables involving government subsidies
3. Long-term equity investments
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2023 to 31 December 2023(Unless otherwise specified. RMB for record in the statement)
(1) Classification of long-term equity investments
| Ending balance | Opening balance | |||||
| Book balance | Impairment loss | Book value | Book balance | Impairment loss | Book value | |
| Investment in subsidiaries: | 1,756,435,120.88 | 1,756,435,120.88 | 1,784,610,068.28 | 1,784,610,068.28 | ||
| Investment in associates: | 101,040,690.02 | 101,040,690.02 | 71,749,356.05 | 71,749,356.05 | ||
| Total | 1,857,475,810.90 | 1,857,475,810.90 | 1,856,359,424.33 | 1,856,359,424.33 | ||
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2023 to 31 December 2023(Unless otherwise 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 Meiling Wulian Technology Co., Ltd. | 6,000,000.00 | 4,000,000.00 | 10,000,000.00 | |||
| CH-Meiling.International (Philippines) Inc. | 6,889,100.00 | 6,889,100.00 | ||||
| Hefei Changhong Meiling Life Appliances Co., Ltd. | 35,000,000.00 | 35,000,000.00 | ||||
| Sichuan Hongmei Intellgence Technology Co., Ltd. | 22,725,052.60 | 22,725,052.60 | ||||
| Total | 1,784,610,068.28 | 26,725,052.60 | 54,900,000.00 | 1,756,435,120.88 |
(3) Investment in associates
| Invested enterprise | Opening | Changes in Current Period | Ending balance | Ending |
Annotations to Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2023 to 31 December 2023(Unless otherwise specified. RMB for record in the statement)
| balance | Additional Investment | Negative Investment | Investment income recognized under equity | Adjustment for other comprehensive income | Other equity change | Cash dividend or profit announced to issued | Provision for impairment loss | Other | balance of impairment | ||
| Hefei Xingmei Assets Management Co., Ltd. | 19,899,176.44 | 33,680.34 | 5,793,600.00 | 14,139,256.78 | |||||||
| Sichuan Zhiyijia Network Technology Co., Ltd. | 51,850,179.61 | 18,633,005.73 | 1,629,022.64 | 68,854,162.70 | |||||||
| Sichuan Hongyuan Venture Investment Partnership(LP) | 18,000,000.00 | 47,270.54 | 18,047,270.54 | ||||||||
| Total | 71,749,356.05 | 18,000,000.00 | 18,713,956.61 | 7,422,622.64 | 101,040,690.02 |
Notes of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2023 to December 31, 2023（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 | 9,149,147,263.72 | 8,292,274,506.85 | 6,895,525,518.29 | 6,249,708,036.25 |
| Other business | 459,251,266.85 | 402,474,977.16 | 502,803,114.71 | 470,539,689.79 |
| Total | 9,608,398,530.57 | 8,694,749,484.01 | 7,398,328,633.00 | 6,720,247,726.04 |
(2)The decomposition information of operation income and operation cost
| Type | Current Year | Last Year | ||
| Income | Cost | Income | Cost | |
| Product | ||||
| Including：Refrigerator, Freezer | 7,620,019,850.61 | 6,954,362,367.45 | 5,993,436,795.13 | 5,524,684,113.61 |
| Air-conditioning | 9,284,414.16 | 9,279,679.94 | 5,518,915.06 | 5,357,940.73 |
| Washing machine | 1,298,981,507.21 | 1,126,741,590.47 | 664,313,682.51 | 600,074,230.97 |
| Small household appliances and kitchen and bathroom | 220,861,491.74 | 201,890,868.99 | 231,527,349.84 | 118,997,813.34 |
| Other products | 728,775.75 | 593,937.60 | ||
| Other businesses | 459,251,266.85 | 402,474,977.16 | 502,803,114.71 | 470,539,689.79 |
| Area | ||||
| Domestic | 5,565,648,590.03 | 5,282,171,820.60 | 5,098,312,560.63 | 4,712,738,010.07 |
| Overseas | 4,042,749,940.54 | 3,412,577,663.41 | 2,300,016,072.37 | 2,007,509,715.97 |
| Total | 9,608,398,530.57 | 8,694,749,484.01 | 7,398,328,633.00 | 6,720,247,726.04 |
5. Investment income
| Item | Current Year | Last Year |
| Long-term equity investment income by equity method | 18,713,956.61 | 11,196,374.66 |
| Investment income obtained from the disposal of trading financial assets | -18,582,366.11 | -563,287.28 |
| Income from financial products | 756,009.30 | |
| Long-term equity investment income by Cost method | 168,821,072.56 | 47,938,347.93 |
| Investment income of other non-current financial assets during holding period | 12,932,690.90 | 10,260,629.45 |
| The termination of income recognition for financial assets measured | -6,157,758.00 | -4,767,753.29 |
Notes of Financial Statements of Changhong Meiling Co., Ltd.January 1, 2023 to December 31, 2023（Unless other wise specified, RMB for record in the statement)
| Item | Current Year | Last Year |
by amortized cost
| by amortized cost | ||
| Interest income from debt investment during the holding period | 14,558,956.62 | 14,763,930.55 |
| Total | 190,286,552.58 | 79,584,251.32 |
XIX.Supplementary information for financial statement
1. Non-recurring gains and losses for this year
| Item | Current Year | Note |
| Non-current asset disposal gain/loss(including the write-off part for which assets impairment provision is made) | 1,336,229.47 | |
| Government subsidies recognized in current gain and loss(excluding those closely related to the Company’s business and granted under the state’s policies) | 80,683,233.76 | |
| 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 | -90,853,412.77 | |
| Reversal of the account receivable depreciation reserves subject to separate impairment test | 4,547,547.09 | |
| Other non-operating income and expenses other than the above | 6,927,799.86 | |
| Subtotal | 2,641,397.41 | |
| Less: impact on income tax | -377,847.36 | |
| Impact on minority shareholders’ equity (post-tax) | 11,396,138.62 | |
| Total | -8,376,893.85 | — |
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 | 13.49% | 0.7195 | 0.7195 |
| Net profit attributable to ordinary shareholders of the parent company after deduction of the non-recurring gains/losses | 13.64% | 0.7276 | 0.7276 |
Chairman: Wu DinggangChanghong Meiling Co., Ltd.
March 30, 2024