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 2023Annual Report 2023
I. Important Notice Table of Contents and Definitions
Board of Directors Supervisory Committee all directors supervisors and senior executives of Changhong Meiling
Co. Ltd. (hereinafter referred to as the Company) hereby confirm that there are no any fictitious statements
misleading statements or important omissions carried in this report and shall take all responsibilities individual
and/or joint for the reality accuracy and completion of the whole contents.Mr. Wu Dinggang Chairman of the Company Mr. Pang Haitao person in charge of accounting work and Mr. Yang
Jun person in charge of accounting organ (accountant in charge) hereby confirm that the Financial Report of 2023
Annual Report is authentic accurate and complete.The Company did not have directors supervisors and senior executives of the Company could not guarantee the
reality accuracy and completion of the whole contents or have objections.All the directors attended the board meeting to deliberating the Report by a combination of on-site and
communication.Modified audit opinions notes
□ Applicable √ Not applicable
Shine Wing Certified Public Accountants (LLP) issued standard unqualified Auditors’ Report for the Company’s
Financial 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 a
substantial commitment for investors investors and the person concerned should maintain adequate risk awareness
furthermore differences between the plans forecast and commitments should be comprehended. Investors are
advised to exercise caution of investment risks.Investors are advised to read the full text of annual report and pay particular attention to the following risk factors:
More details about the possible risks and countermeasures in the operation of the Company are described in the
report “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 the
media for information disclosure for year of 2024 that appointed by the Company. All public information under the
name of the Company disclosed on the above said media and website shall prevail and investors are advised to
exercise caution.Does the Company need to comply with disclosure requirements of the special industry: No
Profit distribution pre-plan or capitalizing of common reserves pre-plan deliberated by the Board in the reporting
period
√ Applicable □ Not applicable
Whether to increase the share capital with public reserve
2Annual Report 2023
□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 1029923715 shares as base dated 31 December 2023 distributed 3 Yuan (tax included) bonus
in cash for every 10-share hold by all shareholders no share bonus issued and no capitalizing of common reserves
carried out.Directors supervisors and senior executives of the Company respectively signed a Written Confirmation Opinions
for 2023 Annual Report.Supervisory Committee of the Company formed Written Examination Opinions for 2023 Annual Report.
3Annual Report 2023
Contents
I.Important Notice Table of contents and Definitions 2
II. Company Profile & Financial Highlights. 7
III. Management Discussion & Analysis 14
IV. Corporate Governance 58
V. Environmental & Social Responsibility 88
VI. Important Events 96
VII. Change of share capital and shareholding of Principal Shareholders 163
VIII. Situation of the Preferred Shares 172
IX. Corporate Bond 173
X. Financial Report 174
4Annual Report 2023
Documents Available for Reference
I.Financial statement carrying the signatures and seals of the Chairman principal of the accounting works and
person 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 designated
by CSRC in the report period;
5Annual Report 2023
Definition
Terms to be defined Refers to Definition
Company The Company Changhong Meiling
Refers to CHANGHONG MEILING CO.LTD.or Meiling Electric
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
China Securities Regulatory Commission Anhui Province
Anhui Securities Bureau Refers to
Securities Regulatory Bureau
SSE Refers to Shenzhen Stock Exchange
6Annual Report 2023
II. Company Profile & Financial Highlights.I. Company Profile
Changhong Meiling
Short form of the stock Stock code 000521200521
Hongmeiling B
Short form of the Stock after
N/A
changed (if applicable)
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长虹美菱
Chinese)
Foreign name of the Company (if
CHANGHONG MEILING CO.LTD.applicable)
Abbr. of English name of the
CHML
Company (if applicable)
Legal representative Wu Dinggang
Registrations add. No. 2163 Lianhua Road Economic and Technology Development Zone Hefei
Code for registrations add 230601
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
Historical changes on the
instead of Linquan Road Hefei City (Meiling Economic Development Zone); on May 19 2008
registration address
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
E-mail info@meiling.com
II. Person/Way to contact
Secretary of the Board
Name Li Xia
No. 2163 Lianhua Road Economic and Technology Development
Contact add.Zone Hefei
Tel. 0551-62219021
Fax. 0551-62219021
E-mail lixia@meiling.com
III. Information disclosure and preparation place
Website of the Stock Exchange where the annual report of the
Shenzhen Stock Exchange www.szse.cn
Company disclosed
7Annual Report 2023
Media and Website where the annual report of the Company Securities Times China Securities Journal and Juchao website:
disclosed http://www.cninfo.com.cn
Room of secretary of the Board 2/F administrative center Office
Preparation place for annual report
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
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 82852683 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 AssetsShares 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 82852683 shares from GreenKel by procedures which has
been transferred. In September 2006 relevant equity transfer agreement signed between the Meiling Group and
Previous GreenKel is invalid which was confirmed by the “Award” ((2006) HZZ No.: 104) issued from arbitration
changes for commission of Hefei; the state-owned legal person’s 82852683 shares held by GreenKel should return to Meiling
controlling Electric and relevant equity consideration will pay to GreenKel by Meiling Group . On 29 December 2006 the
shareholders 82852683 shares of Meiling Electric were transfer to Meiling Group by GreenKel and Meiling Group becomes the
(if applicable) controlling shareholder of Meiling Electric again.
5. On 18 May 2006 and 11 January 2007 Meiling Group entered into “Equity Transfer Agreement of MeilingElectric” and “Supplementary Agreement of Equity Transfer of Meiling Electric” respectively with Sichuan
Changhong and Changhong Group among the 123396375 shares held by Meiling Group 82852683 shares were
transferred respectively to Sichuan Changhong and Changhong Group according to the transfer way regulated in
agreement; of this transferring 45000000 shares (10.88% of total share capital of the Company) were transferred
to Sichuan Changhong the first largest shareholder of the Company while 37852683 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 ofHefei Meiling Co. Ltd.” the 32078846 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
8Annual Report 2023
party Hong Kong Changhong purchased the Company's shares through bidding transaction in the secondary
market.
8. Ended as 31 December 2023 Sichuan Changhong and its concerted action Hong Kong Changhong totally holds
281832434 shares of the Company a 27.36% in total share capital of the Company; Sichuan Changhong directly
holds 248457724 A-share of the Company a 24.12% in total share capital of the Company while Hong Kong
Changhong holds circulation B-share of the Company amounting as 33374710 shares a 3.24% in total share
capital of the Company.V. Other relevant information
(1) CPA engaged by the Company
Name of CPA Shine Wing Certified Public Accountants (LLP)
8/F Block A Fu Hua Mansion No.8 Chao Yang Men Bei da jie Dong
Offices add. for CPA
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 in
reporting period
□ Applicable √ Not applicable
VI. Main accounting data and financial indexes
Whether it has retroactive adjustment or re-statement on previous accounting data
□ Yes √ No
Changes in the current
2023 2022 year over the previous 2021
year (+-)
Operating income
24247678970.5620215220192.2019.95%18032957501.44
(RMB)
Net profit attributable to
shareholders of the 741038108.54 244538734.49 203.04% 51898388.84
listed company (RMB)
Net profit attributable to
shareholders of the
listed company after 749415002.39 102739493.47 629.43% -140217633.26
deducting non-recurring
gains and losses (RMB)
Net cash flow arising
from operating activities 2082343305.04 1465155748.06 42.12% 160923258.10
(RMB)
Basic earnings per share
0.71950.2366204.10%0.0497
(RMB/Share)
Diluted earnings per
0.71950.2366204.10%0.0497
share (RMB/Share)
9Annual Report 2023
8.53 percentage points
Weighted average ROE 13.49% 4.96% 1.07%
up
Changes at end of the
current year compared
Year-end of2023 Year-end of2022 Year-end of2021
with the end of previous
year (+-)
Total assets (RMB) 19391604526.19 16200361212.80 19.70% 15190469756.33
Net assets attributable to
shareholder of listed 5824782654.09 5168286872.09 12.70% 4837334400.21
company (RMB)
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 years
is 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 (International
Accounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable √ Not applicable
The Company has no difference of the net profit and net assets disclosed in financial report under both IAS
(International Accounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles) in reporting
period.
(2) Difference of the net profit and net assets disclosed in financial report under both foreign accounting
rules and Chinese GAAP (Generally Accepted Accounting Principles)
√ Applicable □ Not applicable
In RMB
Net profit attributable to shareholders of listed Net assets attributable to shareholders of listed
company company
Current period Previous period Ending amount Opening amount
Chinese GAAP 741038108.54 244538734.49 5824782654.09 5168471419.72
Items and amount adjusted by foreign accounting rules
Foreign accounting
741038108.54244538734.495824782654.095168471419.72
rules
The Company had no difference of the net profit or net assets disclosed in financial report under either foreign
accounting rules or Chinese GAAP (Generally Accepted Accounting Principles) in the period.
(3) Reasons for the differences of accounting data under accounting rules in and out of China
√ Applicable □ Not applicable
The “Notice of Relevant Issues of Audit for Company with Domestically Foreign Shares Offering” was issued
10Annual Report 2023
from CSRC dated 12 September 2007 since the day issuing cancel the previous “dual audit” requirement for
companies who offering domestically listed foreign shares (B-share enterprise) while engaging securities practice
qualification CPA for auditing. The Company did not compile financial report under foreign accounting 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 out
of China at period-end.VIII. Quarterly main financial index
In RMB
First quarter Second quarter Third quarter Fourth quarter
Operating income 5025237527.25 7803456796.32 6338921510.27 5080063136.72
Net profit attributable
to the shareholders of 122540351.10 235514493.64 140719309.64 242263954.16
the listed company
Net profit after
deducting of non-
recurring gain/loss
103510051.94278479791.88131279099.55236146059.02
attributable to the
shareholders of listed
company
Net Cash flow
generated by business -372008676.48 1782528486.29 995747226.04 -323923730.81
operation
Whether there are significant differences between the above-mentioned financial index or its total number and the
relevant 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
Found more in
disposal of non-current“Income from assetsasset (including the
1336229.47 27602023.18 -133214.72 disposal” and “Non-write-off that accrued
operation
for impairment ofincome/expenses”
assets)
Governmental subsidy
calculated into current Please refer to
gains and losses(while "Financial expenses"
80683233.7686846880.06103024250.74
closely related with the and "Other income" for
normal business of the details
Company the
11Annual Report 2023
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
Found more in
earnings obtained from
"Finincial
disposing the tradingcost"“Investmentfinancial asset trading -90853412.77 36077236.23 105811461.63income” and
financial liability and“Income of fair valuefinancial assetschanges”
available for sale
except for the effective
hedging business
related to normal
operation of the
Company
Switch back of the
impairment for Found more inreceivables that has 4547547.09 2834795.58 3245314.13 “Account receivable"impairment test and " Constract assets"
independentlyFound more in “Non-Other non-operating
operation income" and
income and expenses 6927799.86 761578.29 4867985.38
" Non-operation
other than the above
expenses"
Less: impact on
-377847.363581742.8521813023.99
income tax
Impact on minority
shareholders’ equity 11396138.62 8741529.47 2886751.07
(post-tax)
Total -8376893.85 141799241.02 192116022.10 --
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
12Annual Report 2023
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)/loss
in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public ---
Extraordinary Profit/loss (revised in 2023).
13Annual Report 2023
III. Management Discussion & Analysis
I. 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 development
stage. From the overall data In 2023 the price of raw materials remained at a low level throughout the year and
the pressure on the cost side of enterprises was light but the recovery speed of the domestic home appliance market
was lag behind the overall consumption superimposed that the number of household appliances possessed in China
was 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 back
to normal levels the efficiency advantages of Made in China have been highlighted and the competitiveness of the
whole value chain of export products has been improved; Meanwhile driven by factors such as the relatively low
inventory level of overseas channels the export business showed a recovery growth. According to industry online
data 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 market
consumption and an overall trend of high opening and low closing. According to the total data of AVC the retail
sales in 2023 was 211.7 billion yuan a YOY increase of 7.5% of which the omni-channel gained a growth in the
first half of the year and the retail sales increased by 19.5% YOY; In the second half of the year the industry
continued to decline with retail sales falling by 15.7% YOY in the third quarter and falling by 15.5% in the fourth
quarter.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-conditioning
industry 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 in
exchange rates and shipping costs and the global high temperature brought by the El Ni?o phenomenon the
purchase of air conditioners in overseas markets has increased and the export demand for household air conditioners
has 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 growth
only in the fourth quarter the overall demand release was relatively slow the scale was steadily recovering and the
market has entered a period of "intensive cultivation" of steady growth. According to the total data of AVC the
Omni-channel retail sales of domestic washing machines were 93.4 billion yuan a YOY increase of 5.8%. As export
sales were affected by favorable policies RMB depreciation and reduced logistics costs and other factors which
have prompted the expansion of China's home appliances to overseas markets. According to industry online data
14Annual Report 2023
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 Period
The Company is one of China's major electric appliance manufacturers possesses four major domestic
manufacturing bases in Hefei Mianyang Jingdezhen and Zhongshan and two overseas manufacturing bases in
Indonesia and Pakistan. The Company has always adhered to the principle of "independent innovation intelligent
manufacturing in China" and has been unswervingly focusing on the home appliance industry and carefully
building the core competitiveness of the enterprise with technological innovation and product innovation. With the
cutting-edge R&D team and advanced technology accumulation Meiling has continuously made breakthroughs in
many 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 first
RoHS public testing center in Anhui Province a national enterprise technology center a national industrial design
center 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 Refrigerator
Intelligent Manufacturing Pilot Demonstration Project" "National Green Factory" "National Home Appliance
Industry Quality Leading Enterprise" "National Technological Innovation Demonstration Enterprise" "China
Industry-University-Research Cooperation Innovation Demonstration Enterprise" and so on. Meanwhile the
Company has won a number of technical and product innovation honors with its strong innovation product power
and brand power and a number of Meiling products have frequently won a number of domestic awards constantly
demonstrating the ability and strength of Meiling intelligent innovation technology. The Company won the 2023
China 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" won
the 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 and
environmental protection in the industrial field of the province in 2023 and the green and low-carbon product of
Hefei industrial field respectively; In terms of intellectual property rights "Four-Door Refrigerator (Cross)" and "A
Refrigerator Hinge Component and a Refrigerator Based on It" won the Silver Award and Patent Excellence Award
of the 10th Anhui Province Patent Appearance Design respectively; "A refrigerated indoor constant temperature
zone 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 fastest
drum washing machine for washing white shirts stained with 10ml of old soy sauce stains in addition the product
has also obtained CHCT "maternal and infant household appliance certification" certificate and CVC "product
double safety standard certification" certificate; Meiling's "Hercules" series pulsator washing machine D7B100 won
the 2023 "Good Product" of China's home appliance industry sponsored by China Household Electrical Appliances
Research Institute; Meiling range hood (CXW-188-MY-KD615) won the "Low Noise Range Hood Award" in the
2023 Boiling Quality Award evaluation; The two products of "XC-168L intelligent temperature controlled medical
blood box" and "CX-1000 chromatography cabinet" of Zhongke Meiling have passed the new product appraisal of
Anhui Province and obtained the new product appraisal certificate of Anhui Province.
15Annual Report 2023
After 40 years of development the Company has built a new pattern of coordinated development of multiple
categories such as refrigerator cabinets air conditioners washing machines kitchens and bathrooms appliances
small household appliances and biomedical cryogenic storage equipment. Through continuous innovation we have
successively launched a series of industry-leading products such as M fresh refrigerator the industry's first fully
dust-free fresh air conditioner the industry's leading drum washing machine as clean as hand washing the industry's
first intelligent tea bar machine and ultra-low temperature medical refrigerator with refrigeration up to minus
180 °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 the
guidance 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 traction
to expand and strengthen the white household electric appliance. It will further improve the full-scene layout of
smart home rely on the Zhihuijia system (composed of the Internet of Things Iot platform and App interactive
software) continue to develop 5G complete sets of home appliances and strive to become a smart home solution
provider. Meanwhile we will strengthen digital transformation and continue to strengthen informatization and
digital 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 24.022
billion 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 as
refrigerator 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 correlated
strong brand contact point establishes the four major support points of market product service and brand and
makes 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 brand
mindset of "Meiling equals freshness" is shaped in the hearts of consumers so as to create the freshest products and
the 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 get
out of the circle by holding a series of themed activities such as "The First Fresh Market Music Festival" and "The
First 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 with
fresher products fresher technology and fresher services.The Company continued to adhere to differentiated innovation measures such as technological innovation product
innovation and service innovation and manufactured refrigerators that keep food fresher washing machines that
16Annual Report 2023
make clothes cleaner air conditioners that make air cleaner household appliances that make water cleaner and
biomedical that make samples safer and bring fresher lifestyles to hundreds of millions of consumers with fresher
products.
(2) Product capacity
The Company has a relatively advanced and remarkable R&D and quality assurance system and has passed the
ISO9001 ISO14001 and other management system certifications and the products have been guaranteed by high
quality and reliable product performance. Meanwhile the Company has "National Enterprise Technology Center"
"National Industrial Design Center" "National Intellectual Property Demonstration Enterprise" "National
Industrial Product Green Design Demonstration Enterprise" "National Technological Innovation Demonstration
Enterprise" "China Industry-University-Research Cooperation Innovation Demonstration Enterprise" "Anhui
Province Green Energy-saving Refrigerator Engineering Technology Research Center" "Anhui Province Energy
Conservation and Fresh-keeping Green Refrigerator Engineering Research Center" "Anhui Manufacturing
Innovation Center" and other authoritative certifications as a strong guarantee. In terms of technical research the
Company is committed to the application of fundamental technology research and industrialization transfer and has
established a technical strategic plan with "intelligent frequency conversion simulation and preservation" as the
core technology and "refrigeration new materials and foaming" as the key technologies. In terms of product
research and development a three-layer R&D system of technical research layer platform module layer and product
management layer has been built and the product manager responsibility system with product management layer
as the main body is responsible for the definition and development of products which is responsible for reducing
costs 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 to
achieve "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 refrigeration
for 40 years through the precise control of market trends and the study of consumer preferences focusing on the
product upgrade idea of "fresh thin narrow and embedded" and insisting on promoting the continuous
improvement of product competitiveness we have continued to strengthen the product business cards of "Meiling
Fresh" "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 dual
evaporator system and AI cloud moisturizing technology the "Frozen Fresh" series refrigerators with water
molecule activated preservation technology and constant temperature fresh-freezing technology and the new
generation of "M Fresh" series refrigerators as well as 600L cross-door and 400L two-door French "big and narrow
door" 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 intelligent
electronically controlled freezers smart round screen display DTEB series freezers frequency conversion large
freezer 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 to
build 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"
17Annual Report 2023
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 strength
of 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 cleaning
capabilities of product.In terms of air conditioning products we adhere to the user-centered based on the actual use scenarios of users and
have carried out product layout and iterative upgrades from "wind sense wind outlet and wind control" so as to
continuously improve users' physical comfort visual sense and control convenience. Adhering to the product
planning in line with the brand positioning making differentiated products under the trend focusing on the functions
of full dust-free long-distance air supply and near-soft air zonal air supply and intelligent control we have
continued to create two product business cards of "choose all dust-free in the bedroom and choose the guest dining
cabinet in the living room" to solve the pain points of user needs and shape the user's mind. Centering on the
development 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 of
product quality and continuously strengthening the quality management of core components the quality
management of the whole machine production the quality management of key processes and the management of
key 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 product
lead focus on the core product line take market demand as the guide strengthen R&D capabilities and optimize
product structure. In terms of small household appliances the small box series of tea bar machine products were
launched which became the explosion products in the industry with sales exceeding 100000 units. In terms of
kitchen 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 in
the industry and put forward an after-sales commitment of 8-year warranty which further enhanced the market
reputation of the product and led the industry's product upgrading and service reform. Meanwhile the release of the
industry's leading gas self-adaptive full premixed wall-hung furnace products the thermal efficiency is higher than
the national standard the nitrogen oxide emission reaches level 5 thus to achieve high efficiency energy saving
and green emissions the gas adaptive function better adapts to the user's local climate and gas source changes and
the 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 core
values to users" focus on the field of life sciences continue to promote product innovation and iteration and quality
upgrading based on user scenario-based needs and provide users with professional full-scenario solutions so as to
create a safe and stable brand image and continuously enhance brand influence. In the field of low-temperature
storage in life sciences the new Ruilian series refrigerators were launched and the temperature uniformity
18Annual Report 2023
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-low
temperature biological storage equipment was grandly launched which filled the market gap of compressor
refrigeration equipment in the use scenario of -164°C~-180°C and was a major breakthrough and innovation in the
application of multi-mixture working fluid refrigeration technology. The newly launched Ruigu series of desktop
high-speed refrigerated centrifuges after multi-dimensional repeated tempering are in the forefront of China in
terms of centrifugal force speed precision vibration etc. and the performance fully meets the requirements of
biological 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 management
standards and competitiveness of the Company. At the same time the internal management capability has been
continuously improved by continuing to carry out the improvement work in "human efficiency money efficiency
and material efficiency". The company established a hierarchical sharing system with clear goals quantitative
indicators performance-oriented performance appraisal and incentives to activate internal productivity. Taking
value chain management as the main line continued to carry out value creation work and enhanced the company's
competitiveness. At the same time continuously improved the internal control system and improved the ability to
prevent risks.
(4) Marketing ability
The Company has established a relatively complete sales network and service system which can provide users with
high-quality services covering all categories of white goods. The domestic market is actively accelerated to realize
the marketing transformation from product line-oriented sales management to channel- and user-oriented business
services from single-category marketing to full-category marketing quickly building an operation management
system with reasonable commercial inventory management as the core and a value management system core with
terminal retail price; through determined bench marking match achieved products leading and efficiency
improvement 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 internal
and external synergy and channel expansion". Based on the refrigerator and cabinet industry we have cooperated
with the team and channel resources to accelerate the washing machine business; With the growth of the washing
machine industry we have expanded the overall scale of exports thereby improving operational efficiency and
realizing the positive spiral type synergistic growth of ice washing. Cooperated with the advantages of the domestic
market "large volume multi-door" platform resources we have promoted the structural upgrading of export
business and realized the two-way empowerment of domestic and overseas business with the synergy of internal
and 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 have
strengthened brand building by resources integration and deepened the channel expansion.IV. Main Business Analysis
In 2023 the competitive pressure of the home appliance industry was fierce the Company adhered to the value
19Annual Report 2023
orientation comprehensive efficiency improvement industrial synergy enhancement and internal and external
synergy meanwhile focusing on the main battlefield to explore the development showed a positive trend of steady
progress 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 the
Company's operating income reached 24.248 billion yuan a YOY increase of 19.95% and achieved a net profit
of 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 efficiency
improvement carried out benchmarking and efficiency improvement around the four dimensions of capital
efficiency channel efficiency product efficiency and management efficiency and made full use of the relatively
complete sales network and service system to provide customers with high-quality services. The R&D and
production end is user-centric solving user pain points creating user value and promoting the transformation and
upgrading of the Company's products to be more smart and high-leveled. For the market side the Company adhered
to 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 seamless
PRO offline 400L large and narrow door and frozen fresh products have been successfully launched gained the
good market response which have promoted the improvement of product structure and the positive industry
operation.In terms of overseas markets we have given full play to the synergistic advantages of the industrial supply chain
and 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 standard
upgrades and built technical advantages around frequency conversion. Meanwhile adhering to the integration of
production 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 of
capital efficiency improved the inventory turnover rate and comprehensively enhanced the quality and efficiency
of 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 "zoning
management 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 value
products 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 the
industry.In terms of overseas markets the Company continued to promote the healthy development of its business by
20Annual Report 2023
centering on brand buildup product focus channel breakthroughs and digital transformation. Adhered to the
principle of brand priority development we have deeply cultivated the base market; Focusing on core key markets
and 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 supply
radius and continued to improve the efficiency of production and inventory turnover. By building benchmark lines
and high-quality projects we have continuously improved product quality enhanced product premium ability and
empowered the business.During the reporting period the Company's air conditioning business achieved a revenue
of 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 the
mainstream trend and optimized and adjusted the product structure. In terms of the domestic market by focusing
on the Anhui market we have focused on promoting the development of outlets deepened the transformation of
channels and achieved scale improvement. Meanwhile we have given full play to the differentiated competitive
advantage of "Ultra thin" closely focused on user needs centering on middle products and launched products such
as hand washing series drum washing machines and Hercules series pulsator washing machines to further enhance
the 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 the
completion 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 quickly
enriched the matrix of export products and achieved rapid growth in scale and substantial improvement in
profitability; we have promoted the on-time delivery of new products and comprehensively improved customer
service satisfaction. During the reporting period the Company's washing machine business achieved the revenue of
about 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 development
direction of the "troika" with tea-based cleaning and heating focusing on core product areas gradually establishing
industry influence and promoting the high-quality development of the industry. Each unit continued to promote the
update and iteration of product technology accelerated the upgrading of product structure further enriched the
product matrix enhanced product competitiveness and improved the marketing network system and continued to
innovate to seek breakthroughs from R&D production brand marketing and service. In 2023 we have
comprehensively strengthened the "product traction" accumulated potential energy further enhanced the influence
of 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 and
small 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
21Annual Report 2023
and informatization optimized the R&D process stimulated innovation vitality and was committed to providing
users with professional full-scenario solutions. Adhering to the user-centric and by in-depth market segmentation
channel layout it improved the level of professional services and constantly shaped brand value; Promoting the
standardization of production processes improving the level of value chain management continuously improving
product quality and production efficiency and we have been providing users with first-class products and service
experience. The Company's biomedical industry is mainly carried out based on the platform of its subsidiary
Zhongke Meiling and its products are mainly concentrated in the -180 °C to 8 °C full temperature zone biological
cell 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 cold
chain equipment and related comprehensive system solutions in the biomedical field. At present the Company's
products and solutions have been widely used in medical systems blood systems disease control systems health
systems university research institutions biomedical enterprises genetic engineering and materials research and
other fields.During the reporting period the revenue of biomedical business was about 279 million yuan a YOY
decrease of 20.75%.(ii) Revenue and cost
1. Constitute of operation revenue
In RMB
20232022
Increase/decrease
Ratio in Ratio in
y-o-y (+-)
Amount operation Amount operation
revenue revenue
Total operation
24247678970.56100%20215220192.20100%19.95%
revenue
On Industry
Manufacture of
household 24022148584.59 99.07% 20037625297.52 99.12% 19.89%
appliances
Other business 225530385.97 0.93% 177594894.68 0.88% 26.99%
On products
Refrigerator
9088215517.6737.48%7664575851.6637.91%18.57%
freezer
Air-conditioning 11566440523.53 47.70% 9781896262.72 48.39% 18.24%
Washing machine 1329017674.88 5.48% 753549855.38 3.73% 76.37%
Small appliance
and kitchen & 1849440139.12 7.63% 1605989880.27 7.94% 15.16%
toilet
Other products 189034729.39 0.78% 231613447.49 1.15% -18.38%
Other business 225530385.97 0.93% 177594894.68 0.88% 26.99%
Area
Domestic 16662953598.39 68.72% 15038808862.28 74.39% 10.80%
22Annual Report 2023
Foreign 7584725372.17 31.28% 5176411329.92 25.61% 46.52%
Sub-sale model
Direct sales 225530385.97 0.93% 177594894.68 0.88% 26.99%
Distribution 24022148584.59 99.07% 20037625297.52 99.12% 19.89%
2.Situation of Industry Product and District Occupying the Company’s Business Income and Operating
Profit with Profit over 10%
√ Applicable □Not applicable
In RMB
Increase/dec
Increase/dec Increase/de
rease of
Gross rease of crease of
Operating revenue Operating cost operating
profit ratio operating gross profit
revenue y-o-
cost y-o-y ratio y-o-y
y
On Industry
Manufacture of
household 24022148584.59 20725758770.77 13.72% 19.89% 19.63% 0.18%
appliances
On products
Refrigerator
9088215517.677356737998.4519.05%18.57%15.91%1.86%
freezer
Air-conditioning 11566440523.53 10531949090.31 8.94% 18.24% 20.09% -1.40%
Area
Domestic 16447851363.99 14152604577.11 13.95% 10.60% 10.62% -0.02%
Foreign 7574297220.60 6573154193.66 13.22% 46.62% 45.05% 0.94%
Sub-sale model
Sub-sale 24022148584.59 20725758770.77 13.72% 19.89% 19.63% 0.18%
Under circumstances of adjustment in reporting period for statistic scope of main business data adjusted main
business 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
Increase/decrease
Industries Item Unit 2023 2022
y-o-y (+-)
10 thousand
Sales volume 3486.07 2775.34 25.06%
pieces/set
Manufacture of
10 thousand
household Production 3517.94 2789.28 26.12%
pieces/set
appliances
10 thousand
Inventory 140.96 109.08 29.22%
pieces/set
Reasons for y-o-y relevant data with over 30% changes
□ Applicable √ Not applicable
23Annual Report 2023
4. Performance of the material sales contract and major procurement contracts that signed by the
Company up to the reporting period
□ Applicable √Not applicable
5. Constitute of operation cost
Industry classification
In RMB
20232022
Ratio in Increase/decreas
Industries Item Ratio in
Amount Amount operation e y-o-y (+-)
operation cost
cost
Manufacture of
Raw
household 19036931675.10 91.85% 15777586805.86 91.07% 20.66%
material
appliances
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) 13534796904.46
Proportion in total annual sales volume for top five clients 55.82%
Proportion of the related parties’ sales in total annual sales volume for
32.95%
top five clients
Information of top five clients of the Company
Proportion in total annual
No Name Sales (RMB)
sales
1 Client I 7289331003.57 30.06%
2 Client II 4589467099.06 18.93%
3 Client III 777796556.14 3.21%
4 Client IV 699995244.09 2.89%
5 Client V 178207001.60 0.73%
Total -- 13534796904.46 55.82%
Other notes of main clients
□ Applicable √ Not applicable
(2) Main suppliers of the Company
Total purchase amount from top five suppliers (RMB) 3860792434.26
24Annual Report 2023
Proportion in total annual purchase amount for top five suppliers 20.30%
Proportion of related party’s purchase in total annual purchase amount for
13.73%
top five suppliers
Information of top five suppliers of the Company
Proportion in total annual
No Name Sales (RMB)
purchase
1 Supplier I 1248700174.10 6.57%
2 Supplier II 830491790.88 4.37%
3 Supplier III 683224664.94 3.59%
4 Supplier IV 563608157.96 2.96%
5 Supplier V 534767646.38 2.81%
Total -- 3860792434.26 20.30%
Other notes of main suppliers
□ Applicable √Not applicable
(iii) Expenses
In RMB
Increase/dec
2023 2022 rease y-o-y Note of major changes
(+-)
Sales
1571486417.63 1428874991.47 9.98% No major changes.
expense
Administrati
361134794.49 358586472.37 0.71% No major changes.
ve expense
It’s mainly due to the increase in interest income and the
Financial
-118743396.49 -55214680.04 -115.06% decrease in foreign exchange losses of the Company
expense
during the period.R&D
596920491.26 560383547.49 6.52% No major changes.
expense
(iv)Investment in R&D
√Applicable □Not applicable
Expected impact on the future
Projects Purpose Progress Goals to be achieved
development of the Company
1. User-oriented centered on
Improve the preservation effect With the mindset of Meiling user needs discover the pain
of the freezer and eliminate the fresh as the main line create the points of users in frozen meat
R&D of frozen Completed and the
pain points of poor food best freezer products for the preservation create the best
fresh series product is launched in
preservation subsided nutrition preservation in the industry and refrigerator for freezing and
refrigerators the market.and taste caused by the enhance the market share of preservation in the industry
temperature rise of the freezer. Meiling. develop a series of frozen fresh
products and spur the freezing
25Annual Report 2023
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.User-oriented user-demand
centered with in-depth insight
into the pain points of
consumers' lives develop a
Through the cabinet-opening series of cabinet opening frost-
Research and frost-free freezer it meets free freezers to perfectly solve
Upgrade the direct cooling
development of Completed and the people's needs and expectations the problems that have plagued
freezer from frost and frost
cabinet-opening product is launched in for the freezer and immediately users for a long time. Driven by
reduction stage to frost-free
frost-free series the market. shapes the watershed between technological innovation rooted
directly.freezers the cabinet opening frost-free in user needs create fresh
freezer and other freezers. 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 technology
not only realizes the function of
imitation of hand washing but
Through innovative flanges
also can quickly wash some
"Hand- lifters and other technologies
stains with clean water. The
washing-like" the "one kneading two beating
Return to the essence of Completed and the consumer side gains a cleaner
drum washing and three rinsing" of the drum
washing and create a hand- product is launched in washing and the Company side
machine washing machine is realized
washing effect machine. the market. creates a "More cleaning"
research and and the "washing" mindset of the
mindset of Meiling drum
development drum washing machine is
washing machine which is
created.conducive to the scale and profit
improvement of the drum
washing machine.Research and To solve consumers' demands Through the large motor the Hercules technology achieves a
Completed and the
development of for high washing intensity and powerful pulsator to realize the cleaning ratio of 0.9 the highest
product is launched in
"Hercules" high cleaning ratio by pulsator washing water flow is larger and in the industry of the same type
the market.pulsator products. the washing ratio is higher. of products and meanwhile
26Annual Report 2023
washing solves the consumer's demand
machine 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.The main control board and the
After the completion of the
driver board are integrated with
Second- project the procurement
one MCU and the same main
generation main Trending technology pursuing Completed and the bargaining power is improved
transformer integrated board is
transformer a high degree of standardization product is launched in the product development cycle is
used in subsequent development
integrated and low cost. the market. shortened and the cost
and upgrading and only the
technology competitiveness of the end
display and control board needs
products is ensured.to be changed.Keeping up with the
R&D and development trend of the
The size of electronically
application of industry through the application Completed technical
controlled printed boards is
miniaturization research of the third-generation research and program The promotion and application
reduced by 25% and the ICT
technology semiconductor in the frequency development of the program can greatly
needle planting rate is increased
based on Si2C conversion technology platform verification and it has enhance the comprehensive
by 35% while achieving the
semiconductor develop a frequency conversion been applied to competitiveness of products of
goal of improving quality and
high-frequency technology platform for outdoor achieve mass various specifications.efficiency of production and
and less units with lower loss higher production application
reducing product costs.electrolysis efficiency smaller size and
higher reliability.Digging deep into the pain
The excellent product
points of users studying user use
experience has won praise from
scenarios and breaking through Form a product series with
the market achieved hot sales of
Development the single-pendulum blade Changhong technology label
Completed and the products and won the "2023-
of dual-wing design of traditional air optimize the product line
product is launched in 2024 China Air Conditioning
series on-hook conditioners the dual-wing structure and improve the
the market. Comfort and Health Outstanding
products wind Q7V series innovatively quality level and brand
Product" award at the Air
adopts independent partition air reputation of products.Conditioning Industry Summit
supply technology which
Forum.divides the air guide swing
27Annual Report 2023
blades into two to achieve
asynchronous partition air
supply and ensure comfortable
air supply for the whole house.By integrating the advantages
of "full dust-free" air Completed the industry's first
Strengthen the IP of
conditioning technology with 5A fresh air product
Changhong products achieve
Product Changhong product IP we tap development and jointly created
the goal of improving the
development of the potential of five aspects: Completed and the 5A fresh air air conditioning
appearance and quality of
full dust-free super large fresh air dust-free product is launched in evaluation technical
products and realize the concrete
fresh air hang- fresh air silent fresh air the market. specifications with industry
experience of air supply status
up product constant temperature fresh air authoritative certification
and establish a model of high-
and sterilization fresh air and bodies and obtained 5A product
end products in the industry.provide a systematic solution to certification.the user's pain points.Technical
research and Improve product performance
Completed and the Enhance product
development of and reliability to meet the
product is launched in Batch sales in the market competitiveness and improve
integral water diverse needs of users in the
the market. user satisfaction.machine northern heating area
products
Technical
research and Improve product performance
Completed and the Enhance product
development of and reliability to meet the
product is launched in Batch sales in the market competitiveness and improve
heat pump hot diverse needs of users in the
the market. user satisfaction.air blower northern heating area
products
Technology
Meet the needs of users in
research and To meet the needs of
specific occasions that require Completed and the
development of personalized customers drive
temperature and humidity product is launched in Produced in mass production
special air the sales of the Company's main
control (such as shelter planting the market.conditioning products.base stations etc.)
products
Technical
Meet the market demand of the
research and Expand the temperature
northern heating area (which is Completed and the
development of application range of the product
more suitable for lower product is launched in Batch sales in the market
split water and increase the variety of the
temperatures than the the market.machine product lineup.monolithic type).products
Technical On the basis of the existing - After the completion of the
research and 40~-80°C full range of products project it solves the problem of
Put into mass production and
application of further develop compressor Completed inconvenience for overseas
sales achieved.inverter cascade spray cooling technology customers due to the
refrigeration compressor frequency confidential formula of
28Annual Report 2023
system in ultra- conversion adjustment and two- conventional ultra-low
low temperature stage compressor frequency temperature product refrigerant
freezer storage adaptation technology to meets the demand of overseas
box achieve better operating markets for a full range of
conditions and higher product products of -40°C~- 80°C and
reliability develop dual-system further develops the overseas
refrigeration technology to market of ultra-low temperature
achieve higher energy efficiency products.and replace liquid nitrogen
backup and develop multi-
voltage linkage technology to
achieve plug-and-play in all
regions of the world.It solves the problems of
freezing and thawing during
The project mainly serves the
sample storage the uneven
centralized storage and The success of this project can
temperature fluctuation in the
management of large quantities realize the mass production and
Research and library during operation the
of biological samples which can industrialization of ultra-low
industrialization batch accurate scanning of
maximize the efficiency of temperature intelligent biobank
project of ultra- samples and the long-term
sample preparation quality Completed help improve the popularity of
low temperature stable operation of various
reduce cross-contamination products and bring new growth
intelligent automation equipment in low
improve the speed of sample in expanding new business
biobank temperature environments so as
preparation and processing and areas new industries and new
to realize the mass production
reduce the risk of error through markets.and industrialization of ultra-
traceability.low temperature intelligent
biobank.It solves the problems of low
utilization rate of sample storage
space and the safety of sample
storage low sample storage
Research and
The sample bank management efficiency messy sample Solving the common problems
application of
system suitable for automated classification and storage and of safe and accurate
automated
scenarios is used to solve the imperfect sample information management and use of millions
access
problems of freezing thawing management system and of samples in the existing
technology in
and safety during sample Validation phase. realizes different types of sample bank which can realize
ultra-low
storage and realize the storage needs such as single the industrialization of
temperature
intelligent and unmanned multi-branch single-box multi- automated biobank and create a
environment -
management of accurate sample box etc. with functions such as new situation for the company in
intelligent
batch scanning and traceability. automatic fragmentation and the field of automation.biobanking
scheduled access which meets
the storage needs of biological
samples in various application
scenarios.
29Annual Report 2023
MC-13 series Completed and the Provide differentiated selling Increase the market share of
voice tea bar Improve user interaction. product is launched in points and increase the average products and continue to
machine the market. price of products. improve product gross margins.Realize steam brewing tea tea
Establish the leading image in
soup separation automatic tea Completed and the Initially create tea ecology and
Smart tea the tea industry and continue to
brewing and access to the tea product is launched in establish a high-end image of tea
machine expand the ecological products
cloud mall to realize the the market. drinking.of tea drinks.prototype of tea ecology.Develop a wall-hung furnace
A double-
product with DC frequency Create energy-saving and silent
segmented
conversion fan which can products lead the technological
combustion gas Completed and the Lower noise and improved
linearly adjust the air volume in innovation of the wall-hung
heating furnace product is launched in performance improve product
the whole frequency band and furnace industry and enhance
with DC the market. quality.automatically adjust the speed to the brand's popularity in the
frequency
increase the air pressure when wall-hung furnace industry.conversion fan
the flue is blocked
Develop a rang hood product
with oil smoke separation
A kind of rang
function. Upon the innovative
hood machine Iterate product technology Create differentiated products
nest oil and smoke separation Completed and the
product with oil upgrade and optimize and then enhance the competitiveness of
net the oil stains cannot reach product is launched in
smoke improve and consolidate the product lines and enhance the
the inner cavity effectively the market.separation market position of products. reputation of brand products.protecting the motor and
function
prolonging the life of the whole
machine.Company's R & D personnel situation
2023 2022 Change proportion
Number of Research and
Development persons 1667 1533 8.74%
(persons)
Proportion of Research and
15.07%15.07%0
Development persons
Academic structure of R&D personnel
Undergraduate 1217 1029 18.27%
Masters 113 106 6.60%
Age composition
Under 30 464 389 19.28%
30~406305847.88%
Investment of R&D
2023 2022 Change proportion
Investment for R&D (RMB) 702362069.24 655917101.66 7.08%
R&D investment/Operating 2.90% 3.24% 0.34 percentage
30Annual Report 2023
revenue points
up
Capitalization of R&D investment (RMB) 147821273.96 135753117.26 8.89%
0.35 percentage
Capitalization of R&D investment/R&D
21.05% 20.70% points
investment
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 previous
year
□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
Increase/decrease y-o-y
Item 2023 2022
(+-)
Subtotal of cash in-flow from
25967333384.8221950834479.7018.30%
operation activity
Subtotal of cash out-flow from
23884990079.7820485678731.6416.59%
operation activity
Net cash flow from operation activity 2082343305.04 1465155748.06 42.12%
Subtotal of cash in-flow from
1522346208.441205533608.3526.28%
investment activity
Subtotal of cash out-flow from
1922055740.401711918251.9512.27%
investment activity
Net cash flow from investment
-399709531.96-506384643.6021.07%
activity
Subtotal of cash in-flow from
2294196498.331647463355.4439.26%
financing activity
Subtotal of cash out-flow from
1712327508.382402373865.79-28.72%
financing activity
Net cash flow from financing activity 581868989.95 -754910510.35 177.08%
Net increased amount of cash and
2277906566.11273027138.19734.32%
cash equivalent
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 and
received 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 the
Company's restricted funds and the increase of loans in this period.
31Annual Report 2023
Explanation on reasons for the significant differences between the net cash flow arising from operation activities
in 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 period
compared with the beginning of the year.V. Analysis of the non-main business
√Applicable □ Not applicable
In RMB
Whether
Ratio in total be
Amount Note
profit sustainabl
e (Y/N)
It is mainly due to the investment income of
joint venture investment creditor's rights
Investment income 8438592.04 1.04% No
investment and other non-current financial
assets during the holding period.It is mainly due to the appraisal income of the
Gains/losses from company's forward foreign exchange contracts
7565104.05 0.93% No
fair value changes and other non-current financial assets in this
period.It is mainly due to the depreciation of inventory
Asset impairment -55134397.60 -6.81% and impairment loss of intangible assets No
accrued by the company in this period.It is mainly due to the year-on-year increase in
Non-operation
14660583.17 1.81% the Company's income from liquidated No
income
damages.It is mainly due to the scrapping loss of non-
Non-operation
7732783.31 0.96% current assets and public welfare donations of No
expenditure
the company in this period.It is mainly due to the impairment loss of
Credit impairment
-81621384.13 -10.08% accounts receivable accrued by the company in No
losses
this period.VI. Analysis of assets and liability
(i) Major changes of assets composition
In RMB
Year-end of 2023 Year-begin of 2023
Ratio
Ratio in Ratio in
changes Note of major changes
Amount total Amount total
(+-)
assets assets
Monetary 8840685525.71 45.59% 6839421779.13 42.20% 3.39% It is mainly due to the
32Annual Report 2023
fund increase in net cash flow
generated by the company's
operating activities in this
period.It is mainly due to the
Account increase in the Company's
1633706889.068.42%1306871945.858.06%0.36%
receivable operating income in this
period.Contract
13261690.62 0.07% 3530922.13 0.02% 0.05% No major changes.
assets
It is mainly due to the
Inventory 2022738412.97 10.43% 1710306933.71 10.55% -0.12% increase in production of
the company in this period.Investment
50920487.71 0.26% 52898060.89 0.33% -0.07% No major changes.
real estate
Long-term
equity 112745811.75 0.58% 100384428.50 0.62% -0.04% No major changes.investment
Mainly due to the
depreciation of the
Fix assets 2136912034.28 11.02% 2229553866.96 13.76% -2.74%
company's assets in this
period..Constructio
n in 69920839.20 0.36% 66522492.77 0.41% -0.05% No major changes.progress
Right-of-use
49993400.61 0.26% 36646135.10 0.23% 0.03% No major changes.
assets
It is mainly due to the
Short-term increase in short-term loans
1134102419.035.85%674143916.674.16%1.69%
loans borrowed by the company
in this period.Contract
405698756.02 2.09% 358755397.77 2.21% -0.12% No major changes.
liability
It is mainly due to the
reclassification of the
Long-term
108000000.00 0.56% 148000000.00 0.91% -0.35% company's long-term loans
loans
to non-current liabilities due
within one year.Lease
43488292.70 0.22% 28164287.97 0.17% 0.05% No major changes.
liability
Mainly due to the decrease
Receivable in the proportion caused by
1641858740.348.47%1446358719.888.93%-0.46%
financing the increase in the total
assets of the company's
33Annual Report 2023
accounts receivable in this
period..It is mainly due to the
Creditor's
increase in the Company's
rights 420537485.54 2.17% 121543750.00 0.75% 1.42%
large deposit certificates in
investment
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
Dev
aluat
Accumu
ion
Changes of fair lative
of
changes Amount of
Amount at the value with Sales in the Amount at end of
Items of fair draw purchase in Other changes
beginning period gains/losses in value period the period
ing
reckone the period
this period in
d into
the
equity
peri
od
Financial assets
1.Trading financial assets
(derivative financial assets 57660588.67 -18424141.04 39236447.63
excluded)
2. Receivable financing 1446358719.88 195500020.46 1641858740.34
3. Other non-current
628549448.3116256733.1729333334.00674139515.48
financial assets
Subtotal of financial
2132568756.86-2167407.8729333334.00195500020.462355234703.45
assets
Above total 2132568756.86 -2167407.87 29333334.00 195500020.46 2355234703.45
Financial liabilities 41961524.78 -9732511.92 32229012.86
Other changes:
Other changes in receivable financing are caused by the increase of notes receivable aimed at both collecting
contract 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 or
not
□Yes √ No
(iii) Assets right restricted ended as reporting period
Ended as the reporting period the Company has no major assets been closed down detain freeze or pledge andguarantee. As for other assets have restriction on rights found more in relevant content of “24. Assets withrestricted ownership or use rights” in “V. Note of consolidate financial statement” carried under Section X.Financial Report
34Annual Report 2023
VII. Investment analysis
(i) Overall situation
√Applicable □ Not applicable
Investment in the same period of last
Investment in the reporting (RMB) Changes
year ( RMB)
45000000.00200000000.00-77.50%
(ii) The major equity investment obtained in the reporting period
√Applicable □ Not applicable
35Annual Report 2023
In RMB
Whe
ther
Date of
Exp invo Index of
Meth Term Typ disclosu
Status as of ecte Current lved disclosure
Name of Principal od of Amount of Sharehold Capital of e of re (if
Partners the balance d investment in a (if
invested business invest investment ing ratio sources invest prod applicab
sheet date retur profit and loss laws applicable
ment ment ucts le
n uit( )
)
Y/N
)
General
During the
items:
reporting
Sichuan Venture Sichuan Hongyun Venture Juchao
period
Hongyun capital Stock Investment Website
Newl Not Complete the Not
Venture (limited Management Co. http://ww
y 8 appl first phase appl 2023-
Capital to 45000000.00 30.41% Self-fund Ltd.Sichuan Changhong 47270.54 No w.cninfo.c
establ years icabl Invest 1800 icab 01-18
Partnership investme Electronics Holding Group om.cn
ished e yuan le(Limited nt in Co. Ltd.Sichuan Changhong （2023-Ten thousand
Partnership) unlisted Electric Co. Ltd. 004)
yuan.enterpris
es)
Total -- -- 45000000.00 -- -- -- -- -- -- -- 47270.54 -- -- --
(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.
36Annual Report 2023
2.Derivative investment
√ Applicable □ Not applicable
(1) Derivatives investment for hedging purposes during the reporting period
√ Applicable □ Not applicable
In RMB 10000
Ratio of investment
Changes in the Amount Amount sales
Amount at the Profit and loss of Investment amount at period-
cumulative fair purchased in in the
Type Initial investment beginning fair value change in amount at end in net assets of
value included in the reporting reporting
period the current period period-end the Company at
the equity period period
period-end
Forward foreign exchange contract 385815.06 217191.87 -869.16 0 736225.85 632474.92 332515.07 57.09%
Total 385815.06 217191.87 -869.16 0 736225.85 632474.92 332515.07 57.09%
Specific principle of the accounting policy
and calculation for derivatives in the Period
Not applicable
compared with last period in aspect of major
changes
Description of actual profit and loss during
During the reporting period the Company confirmed the income from derivatives investment of RMB -115.7228.million.the reporting period
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
Description of hedging effect 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
Risk analysis:
derivatives holdings in the Period (including
37Annual Report 2023
but not limited to market risk liquidity risk 1. Market risk: domestic and international economic situation changes may lead to exchange rate fluctuations forward foreign exchange transactions are under
credit risks operation risk and law risks etc.) 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
The Company determines fair value in accordance with the Chapter VII “Determination of Fair Value” carried in the Accounting Standards for Business Enterprises
market price or fair value in the Period as for
No.22 - Recognition and Measurement of Financial Instruments. Fair-value is basically obtained according to prices offered by bank and other pricing services.analysis of the fair value of derivatives
While fair-value of derivatives is mainly obtained according to the balance between prices given by outstanding contracts and forward prices given by contracts
disclosed specific applied methods and
signed during the reporting period with bank. The differences are identified as trading financial assets and liabilities.correlation assumption and parameter setting
Lawsuit involved (if applicable) Not applicable
Disclosure date for approval from the Board
March 312023
for investment of derivatives (if applicable)
Disclosure date for approval from board of
shareholders for investment of derivatives (if April 262023
applicable)
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
38Annual Report 2023
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
AssociationManagement 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
Nil
VIII. 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%
39Annual Report 2023
In RMB
Company name Type Main business Register capital Total assets Net assets Operating revenue Operating profit Net profit
Research and
development
Zhongke Meiling Cryogenic
Subsidiary manufacturing and sales 96730934 734480745.25 601519972.36 302785719.33 19141881.46 16126507.82
Technology Co. Ltd.of ultra-low temperature
freezer
Jiangxi Meiling Electric Appliance Manufacturing of
Subsidiary 50000000 351277453.94 155046616.61 720626403.48 12407856.59 12408056.59
Co. Ltd. refrigeration and freezer
Mianyang Meiling Refrigeration Co. Manufacturing of
Subsidiary 100000000 191889234.80 120713472.01 285257334.95 -360873.32 -354646.22
Ltd. refrigeration and freezer
R&D manufacturing
Sichuan Changhong Air-conditioner
Subsidiary and domestic sales of 850000000 4004171452.80 1220575635.42 8008596138.13 229101892.24 229982423.10
Co. Ltd.air-conditioning
R&D manufacturing
Zhongshan Changhong Electric Co.Subsidiary and foreign sales of air- 334000000 2295526431.19 348248735.78 3750169165.68 161004581.85 160707265.04
Ltd.conditioning
Hefei Meiling Group Holdings
Subsidiary Sales of white goods 80000000 1161054046.07 -292136413.06 5719876952.55 140340587.18 134924071.03
Limited
R&D and sales of
Hefei Changhong Meiling Life household appliances
Subsidiary 50000000 622486357.58 139793516.06 1660852475.77 63306977.04 57607898.93
Appliances Co. Ltd. kitchen appliances and
small home appliances
40Annual Report 2023
(ii) Subsidiary obtained and disposed in the period
√ Applicable □ Not applicable
The method of obtaining and
The influence to the whole production and
Company name disposing subsidiaries during
performance
the report period
Hefei Meiling Electric Appliances Minor effect on the overall production and operation
Cancellation
Marketing Co. Ltd and performance of the company
Wuhan Meizhirong Electric Appliances Minor effect on the overall production and operation
Cancellation
Marketing Co. Ltd 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 consumption
environment; encourages digital consumption and promotes live E-commerce; encourages green consumption and
reduces the "carbon content" of consumption.However the domestic macro-economy is still in the stage of sustained
recovery the real estate industry is in periodic adjustment the residents' consumption ability is insufficient the
traditional home appliances industry is in full competition with high product homogeneity and the industry
development 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 2023
to 2.9% in 2024 which is lower than the historical average of 3.8%. Moreover overseas inflationary pressure
persists trade protectionism re-surges political risks and geopolitical tensions intensify and there is still great
uncertainty 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 home
appliances in major categories such as refrigerators washing machines and air conditioners exceeded 3 billion and
the demand for upgrading is great. China's home appliance market has entered the era of stock replacement. The
Ministry of Commerce of China stated that promoting the trade-in of home appliances in 2024 is the focus of
promoting consumption this year. The additional policy effect is expected to bring improved upgrading trend of
product 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 high
proportion of raw materials for refrigerators (freezers) has dropped and the additional ability of enterprises to
reduce costs and improve efficiency has been enhanced. Refrigerators (freezers) enterprises are still in the cost
dividend 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 theAnnual Report 2023
cost advantage boundary wall brought by small platforms and low investment of small and medium-sized brands
has been broken the concentration of the top brands has further increased and the importance of efficiency to the
healthy operation of enterprises has been enhanced.Driven by new standards and regulations the industrial structure
has been rapidly upgraded and the products shows a significant trend of energy saving frequency conversion and
large volume; Green industry has a more prominent impact on the home appliance industry and the demand for
low-carbon production recyclable and degradable environment-friendly materials is increasing year by year. Under
the 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 air
conditioners the household air conditioning industry has transitioned from the incremental era to the stock
competition era. According to the forecast by All View Cloud (AVC) in 2024 the retail sales in air-conditioning
market 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 is
further narrowed.In terms of export with the continuous advancement of economic globalization the global market competition will
become 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 extreme
weather events the requirements for energy efficiency and environmental protection of air-conditioning products
will be further increased. In addition with the reorganization of global supply chain and the promotion of product
value chain the global production and sales layout of multinational companies will be further optimized to meet the
changing market demand.According to the industry online forecast the export volume of household air conditioners
in 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 the
trend 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 washing
machine industry will show a weak recovery trend in 2024.As for the products influenced by the trend of smart
home appliance integration large-capacity and ultra-thin embedded products have become the development trend
of the industry.
4.Kitchen & bathroom small appliance
Kitchen and bathroom appliances have always been an important component of household appliances. With the
improvement of living standards and the transformation of kitchen functionality people have put forward higher
requirements for kitchens and kitchen appliances. In terms of functionality it is required that the kitchen be classified
and partitioned with clear flow lines and complete functions. The kitchen electrical products should collaborate to
complete a series of tasks such as washing cooking and cleaning. At the same time health and nutrition should be
42Annual Report 2023
taken into consideration. In terms of layout it is necessary to not only release as much space as possible but also
achieve greater storage and storage. Under this promotion the structure of kitchen appliances continues to adjust
and upgrade and the proportion of mainstream categories in the market is gradually increasing. The upgrading and
innovation 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 for
dining 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 a
wide range of categories covering all aspects of people's home life so their growth paths and development trends
are also different. However from the perspective of channels the overall revenue of the small household appliances
Tiktok channel has increased significantly and each major node has significantly promoted the growth. Backed by
the high flow short video platform and content platform the new channel resource investment is expected to drive
the 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 of
population the national expenditure on medical care will keep increasing.In the meantime with the development
and construction of China's medical and health system more and more attention has been paid to biosafety which
has stimulated the growing demand for potential biological sample storage; With the expansion of
biopharmaceuticals the scale of global refrigerated drugs has expanded and the demand for low-temperature
storage 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 will
increase steadily.Policy support injects development momentum into the medical device industry.In recent years China has attached
great importance to the medical device industry and provided great support at the policy level. In July 2023 National
Health Commission issued the recommended health industry standard Equipment Configuration Standard for
County General Hospitals" which came into effect on January 1 2024 and stipulated the basic principles for the
configuration of equipment worthy of RMB 10000 and above in county general hospitals and made minimum
configuration standards for basic equipment items such as centrifuges medical freezers biosafety cabinets and
medical blood freezers. From 2024 the allocation of primary medical equipment will be gradually increased and
the 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 improves
efficiency enhances six capabilities around "one goal" deepens internal and external coordination strengthens
compliance risk control and promotes its sustained and high-quality development. In 2024 it will strive to move
towards 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
43Annual Report 2023
synchronous promotion and synchronous assessment promote development with party building and strengthen
party building with development.It will unswervingly enrich its minds guide practice and promote work with
socialism 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 responsibility
of party building focus on improving the quality of party building further improve the party building system and
build 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 private
domain 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 strengthen
the product business cards of "Meiling Fresh" "Meiling Thin" "Meiling Narrow" and "Meiling Embedded"; In
terms of air conditioners tamp down the two product business cards of "All-dust-free" and "Living and Dining
Cabinet"; In terms of washing machines create the business cards of "Clean" and
Construction of marketing power.It will focus on ensuring retail promoting quality products improving efficiency
and strengthening diversion continue to establish and build a marketing system strengthen terminal marketing
capacity building enhance terminal brand image deepen the upgrading of marketing thinking build a high-quality
marketing team improve the professional planning and promotion capabilities and win the battle of terminal
competition.Construction of channel power.Domestically it will focus on consolidating its own channels outperforming the
retail channels expanding incremental channels and breaking through emerging channels so as to improve channel
carrying capacity and channel operation quality.It will build overseas distribution channels deepen the construction
of customer system focus on resources to ensure high-quality customers focus on brand business and
comprehensively achieve double growth in both scale and share.Construction of service power.Focusing on product delivery after-sales service quality management and customer
satisfaction it will use digital tools as a means to improve product delivery efficiency enhance after-sales service
quality ensure product delivery quality and comprehensively improve service capacity through efficiency
improvement and cost reduction.Construction of organizational power.It will optimize the internal organizational structure by benchmarking and
improve 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 promote
industrial development.
(4) Compliance risk control
44Annual Report 2023
It will carry out various tasks around the "Year of Strengthening Compliance Management" in 2024 and strengthen
and improve the construction of compliance risk control system.It will continue to strengthen the publicity of
compliance culture constantly improve the "1+N" system of compliance risk control strengthen the "trinity" risk
prevention 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 strengthen
compliance management in an all-round way establish a "hierarchical" compliance risk identification and
evaluation warning mechanism incorporate the compliance work into the business process establish an operation
mechanism of "integration of industry and regulation" continuously improve the awareness and ability of risk
prevention and control continuously improve the management level of compliance according to law and ensure the
safety 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 the
stock market it will make product layout around "fresh thin narrow and embedded" and promote quality products
and hot quality products create hot products optimize the product structure and provide consumers with products
of unique value based on the customer-oriented principle.In terms of products It will focus on SKU product
efficiency improve product quality and enhance product competitiveness.In terms of channels it will promote the
refined 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" and
strengthen the quality and efficiency of retail channels by optimizing product layout strengthening operational
capabilities and strengthening channel efforts so as to seize the market opportunities of emerging channels. In terms
of marketing it will strengthen the terminal marketing capacity building enhance the terminal image
competitiveness focus on the marketing of new media content and improve the user operation and drainage
transformation.In terms of overseas markets it will upgrade the global demand structure strengthen upgraded product planning
and differentiated product design and at the same time strengthen efficiency improvement.By focusing on key
markets and core high-quality customers it will open up regional markets with high synergy with the domestic
market tap development potential markets and continuously improve customer efficiency. It will accelerate brand
business increase investment in brand teams and products and continue to promote the construction of overseas
independent brands.
(2) Air conditioners
In terms of domestic market on the premise of maintaining benign operation it will enlarge the scale and increase
the average price through the business strategy of "brand promotion product upgrading channel expansion and
comprehensive retail". With the product as the carrier it will expound the brand mind and brand values of "precision
quality and comfort in every degree" interpret the spirit of "responsibility innovation and tenacity" and realize
cultural resonance with customers; adhere to the user-orientation grasps the healthy comfortable and energy-saving
market trend and strengthen the R&D of core technologies and the transformation of results; It will focus on
45Annual Report 2023
"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 product
promotion 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 cash
flow growth" adhere to brand priority open up base markets and expand brand agency; preserve stock seek
increment focus on superior channels and open up new markets; follow the market trend launch high-quality
products 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 the
whole 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-generation
upgraded product to meet the cleaning needs of consumers and further improve the cleaning ability. It will develop
a flat-embedded series of washing and drying package products further adapting into home integration. In the
domestic market it will continue to deepen the base market focus on the construction of basic and e-commerce
channels and achieve steady growth in scale.In overseas markets it will "grasp one core and two basic aspects" and
strengthen cooperation with key customers; focus on color screen drum washing machine and build a leader in
color 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 appliances
industries continuously consolidate the market position of core products and further enhance the brand
influence.For product line of tea-based drink it will strengthen the core competitiveness focus on the improvement
and function enhancement of self-developed and self-made products and enhance the management quality.It will
clean the product line of electrical appliances focus on strengthening the functions of the project team and promote
the rapid development of the project.In terms of fuel-fired product line it will continue to take the marketing strategy
as the guide speed up the development and launch of gas core technologies and quickly realize the marketization
of products.The industry will focus on resource investment and realize the "Troika" marching hand in hand by
strengthening R&D capability and precise marketing strategy.
(5) Biomedical products
It will unswervingly implement the development strategy of "diversification based on biomedical field" focus on
the 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 business
philosophy of "technology-founded product-based market-oriented and customer-centered" and continues to
operate steadily around the business principles of deepening channels innovating products optimizing quality and
improving efficiency.The above business plans and business objectives do not represent the listed company's profit forecast for 2024.
46Annual Report 2023
Whether they can be realized depends on many factors such as changes in market conditions and the efforts of the
management team. There is great uncertainty which shall be especially noted by the investors.(IV) Possible risks and countermeasures
Facing the objective factors such as more intense competition in the home appliance market the living environment
of 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 industry
development has entered the era of stock competition. In addition the incremental demand of other competitive
brands will further aggravate the product competition situation leading to the risk of price war.Faced with severe
challenges the Company will actively increase R&D investment and win customers through continuous innovation
of products and services.
2. Risk of exchange rate fluctuation
Affected by the international situation the exchange rate fluctuates greatly.The Company will pay close attention
to 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 will
have a certain impact on the company's operating performance.The Company will continue to pay attention to the
price fluctuation of bulk materials and take timely measures to deal with risks and reduce the impact of price
fluctuations.
4. Influence of trade friction and geopolitics
The Company pays close attention to the impact of uncertain factors such as international trade friction and
geopolitics on its global business.In view of the above risks combined with the industry situation in 2024 and its own disadvantages in 2023 the
Company 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's
sustained and high-quality development" and make the layout of products technologies and markets in advance to
realize the high-end and intelligent transformation of the Company's products enrich the product line enhance the
Company's operating ability and profitability and build a comprehensive home appliance enterprise.
47Annual Report 2023
XII. In the report period reception of research communication and interview
□ Applicable √Not applicable
Reception Main contents of the discussion
Time Location Way Type Basic situation index of investigation
object and the information provided
#2 reference room of
http://www.cninfo.com.cn/new/disclosure/detailplate=szse&orgId=g
February the administrative Field Operation condition of the
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http://www.cninfo.com.cn/new/disclosure/detailplate=szse&orgId=g
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Individual Dong Guoshuai ssz0000521&stockCode=000521&announcementId=1215767818&a
22023 center of the research Company
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—— online Institute ssz0000521&stockCode=000521&announcementId=1215951190&a
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Southern FundChina
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Tebon fund Shenwan
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April 202023 online Institute ssz0000521&stockCode=000521&announcementId=1216497454&a
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room of the Operation condition of the
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April 242023 online Institute ssz0000521&stockCode=000521&announcementId=1216552643&a
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49Annual Report 2023
2023; April room of the platform for FundChangjiang Pension Company ssz0000521&stockCode=000521&announcementId=1216646210&a
27 2023 administrative center online Huabao Fund Guangfa nnouncementTime=2023-04-27%2017:18
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the administrative Field Operation condition of the
May 82023 Institute Management Huafu Fund ssz0000521&stockCode=000521&announcementId=1216780403&a
center of the research Company
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Company
SecuritiesGuotai Junan
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##2 reference room of
platform for Fund Pengyang Fund http://www.cninfo.com.cn/new/disclosure/detailplate=szse&orgId=g
May 102023 the administrative Operation condition of the
online Institute Western Lfadbank FMC ssz0000521&stockCode=000521&announcementId=1216800095&a
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Company
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#1 #4 reference Great Wall Securities
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room of the Jinying SecuritiesCICC Operation condition of the
172023May online Institute ssz0000521&stockCode=000521&announcementId=1216852449&a
administrative center Asset Management Company
18 2023 communicati nnouncementTime=2023-05-18%2017:49
of the Company Changxin Fund Noude
on
Fund Zhong OU Bank of
50Annual Report 2023
China Investment
Management
#2 #4 reference Zhongtai Securities Xinda
May 24 http://www.cninfo.com.cn/new/disclosure/detailplate=szse&orgId=g
room of the Field Appliances Haifutong Operation condition of the
2023May 25 Institute ssz0000521&stockCode=000521&announcementId=1216907443&a
administrative center research Fund Tianfeng Securites Company
2023 nnouncementTime=2023-05-25%2017:23
of the Company Gousheng Securities
Huaxi Securities Jiashe
FundSinolink Securities
Wanjia FundAmundi
BOC Wealth Management
Loyal Valley
#1 #2 reference CapitalYangpei
May http://www.cninfo.com.cn/new/disclosure/detailplate=szse&orgId=g
room of the Field Investment Junlong Life Operation condition of the
312023June Institute ssz0000521&stockCode=000521&announcementId=1216966650&a
administrative center research Yongxing Securities Company
1 2023 nnouncementTime=2023-06-01%2018:03
of the Company CITIC Securities Huaan
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Investment Southwest
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Managment
No.1 Meeting Room http://www.cninfo.com.cn/new/disclosure/detailplate=szse&orgId=g
Field China Securities CINDA Operation condition of the
June 62023 Zhongshan Institute ssz0000521&stockCode=000521&announcementId=1217011964&a
research Fund Company
Changhong nnouncementTime=2023-06-07%2017:47
A15 Meeting Room http://www.cninfo.com.cn/new/disclosure/detailplate=szse&orgId=g
Field Jiashi Fund Guosheng Operation condition of the
June 72023 Changhong Trade Institute ssz0000521&stockCode=000521&announcementId=1217022748&a
research Securities Company
Center nnouncementTime=2023-06-08%2017:57
#1 reference room of Online Xinhua Fund Huaxi Operation condition of the http://www.cninfo.com.cn/new/disclosure/detailplate=szse&orgId=g
June 122023 Institute
the administrative platform for Securities Company ssz0000521&stockCode=000521&announcementId=1217054282&a
51Annual Report 2023
center of the online nnouncementTime=2023-06-13%2019:05
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platform for Mangement Huaan http://www.cninfo.com.cn/new/disclosure/detailplate=szse&orgId=g
room of the Operation condition of the
June 132023 online Institute FundCICC Asset ssz0000521&stockCode=000521&announcementId=1217066302&a
administrative center Company
communicati Management Jiashi Fund nnouncementTime=2023-06-14%2017:53
of the Company
on Cinda FundSouthwest
Securities Guosheng
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#2 reference room of
platform for http://www.cninfo.com.cn/new/disclosure/detailplate=szse&orgId=g
the administrative PICC Asset Taikang Operation condition of the
June 152023 online Institute ssz0000521&stockCode=000521&announcementId=1217073900&a
center of the AssetChina Securities Company
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on
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the administrative Operation condition of the
272023June online Institute Merchants Fund Cinda ssz0000521&stockCode=000521&announcementId=1217154961&a
center of the Company
282023 communicati Fund Haitong Appliance nnouncementTime=2023-06-28%2017:49
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on
#3 reference room of Online Shenwan Hongyuan
August 21 http://www.cninfo.com.cn/new/disclosure/detailplate=szse&orgId=g
the administrative platform for Securities Guosheng Operation condition of the
2023August Institute ssz0000521&stockCode=000521&announcementId=1217606538&a
center of the online Securities Southwest Company
222023 nnouncementTime=2023-08-22%2018:03
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52Annual Report 2023
on Guangfa Fund Huaan
Fund Jiashi Fund
BOCOM Schroders
Zhong Ou Fund
Rongtong Fund Taikang
FundGreat wall Fund E
fundChina Merchants
FundICBC Fund Huatai
Pinebridge Investment
Xinhua Fund Cinda Fund
Dacheng Fund Southern
FundLion Fund
Pengyang Fund
Chongshan Investment
Chunhou Fund Donghai
FundFounder Asset
Management China
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ManagementGuolian
Fund Hotland Innovation
Asset ManagementMirae
AssetHuaxi Securities
Huian Fund Jinying Fund
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Pingan PensionPingan
Asset
Management Xuanlu
Investment Winsure
53Annual Report 2023
Capital Changjiang
Pension loyal Valley
Capital Zhonghui Life
Zhongtai Asset
Management CITIC Asset
Management Bank of
China Investment
ManagementMaxwealth
Fund China Universal
Asset Mangement Guotai
Fund Hongde Fund
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#4 reference room of
platform for http://www.cninfo.com.cn/new/disclosure/detailplate=szse&orgId=g
August the administrative China Universal Asset Operation condition of the
online Institute ssz0000521&stockCode=000521&announcementId=1217694174&a
292023 center of the Mangement Company
communicati nnouncementTime=2023-08-29%2017:35
Company
on
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#2 reference room
platform for http://www.cninfo.com.cn/new/disclosure/detailplate=szse&orgId=g
September of the administrative Xingtai Investment Operation condition of the
online Institute ssz0000521&stockCode=000521&announcementId=1217859735&a
142023 center of the Yangjiao Fund CMS Company
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platform for http://www.cninfo.com.cn/new/disclosure/detailplate=szse&orgId=g
September the administrative Operation condition of the
online Institute Haitong FundTebon Fund ssz0000521&stockCode=000521&announcementId=1217871475&a
152023 center of the Company
communicati nnouncementTime=2023-09-15%2017:57
Company
on
54Annual Report 2023
Online
#4 reference room of
platform for http://www.cninfo.com.cn/new/disclosure/detailplate=szse&orgId=g
September the administrative Guangfa Fund Gousheng Operation condition of the
online Institute ssz0000521&stockCode=000521&announcementId=1217970679&a
272023 center of the Securities Company
communicati nnouncementTime=2023-09-27%2018:41
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on
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#3 reference room of
platform for http://www.cninfo.com.cn/new/disclosure/detailplate=szse&orgId=g
October the administrative Operation condition of the
online Institute Jiashi Fund ssz0000521&stockCode=000521&announcementId=1218151133&a
252023 center of the Company
communicati nnouncementTime=2023-10-25%2018:51
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on
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platform for http://www.cninfo.com.cn/new/disclosure/detailplate=szse&orgId=g
October the administrative Huatai Borui Fund Operation condition of the
online Institute ssz0000521&stockCode=000521&announcementId=1218168881&a
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communicati nnouncementTime=2023-10-26%2018:57
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on
Xinhua Fund J P Morgan
Asset Management China
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#2 reference room
platform for Fund Jiashi FundOriental http://www.cninfo.com.cn/new/disclosure/detailplate=szse&orgId=g
October of the administrative Operation condition of the
online Institute Alpha Fund Huaan Fund ssz0000521&stockCode=000521&announcementId=1218203763&a
302023 center of the Company
communicati UG Fund Zhongtai nnouncementTime=2023-10-30%2019:23
Company
on Securities Shenwan
Securities Tianfeng
Securities
#2 reference room of Online
Bocom Schrodenrs Fund http://www.cninfo.com.cn/new/disclosure/detailplate=szse&orgId=g
November the administrative platform for Operation condition of the
Institute Jiashi Fund Zhong Ou ssz0000521&stockCode=000521&announcementId=1218292412&a
152023 center of the online Company
Fund Guosheng Securities nnouncementTime=2023-11-09%2018:31
Company communicati
55Annual Report 2023
on
Online
#2 reference room of
platform for Southern Fund Huatai http://www.cninfo.com.cn/new/disclosure/detailplate=szse&orgId=g
November the administrative Operation condition of the
online Institute Bairui Fund Guosheng ssz0000521&stockCode=000521&announcementId=1218351774&a
152023 center of the Company
communicati Securities nnouncementTime=2023-11-15%2017:59
Company
on
#2 reference room of
Huaan Fund ABC-CA http://www.cninfo.com.cn/new/disclosure/detailplate=szse&orgId=g
December the administrative Field Operation condition of the
Institute Fund Management China ssz0000521&stockCode=000521&announcementId=1218593063&a
122023 center of the research Company
Fund nnouncementTime=2023-12-12%2018:17
Company
Online
#2 reference room of
platform for http://www.cninfo.com.cn/new/disclosure/detailplate=szse&orgId=g
December the administrative Guangfa Fund Zhongtai Operation condition of the
online Institute ssz0000521&stockCode=000521&announcementId=1218606177&a
132023 center of the Securities Company
communicati nnouncementTime=2023-12-13%2017:31
Company
on
Guotai Fund BOSC Asset
Online
#1 reference room of Juming Investment CICC
platform for http://www.cninfo.com.cn/new/disclosure/detailplate=szse&orgId=g
December the administrative Asset Management Operation condition of the
online Institute ssz0000521&stockCode=000521&announcementId=1218703132&a
222023 center of the Penghua Fund Dongwu Company
communicati nnouncementTime=2023-12-22%2016:55
Company Fund Zhongtai Securities
on
Huaxi Securities
56Annual Report 2023
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 governance
In strict compliance with the Company Law Securities Law Governance Principles of Listed Company issued by
the CSRC the Rules Governing the Listing of Stocks on Shenzhen Stock Exchange and Shenzhen Stock Exchange
Self-Regulatory Guidelines No.1- Standardized Operation of the Listed Companies on main Board of SSE the
Company 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 of
supervisors and operation management as the major structure. The general meeting board of directors board of
supervisors and operation management of the Company has definite terms of reference which can ensure an
effective balance scientific decision-making process and coordinative operation laying firm foundation for making
decisions 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 of
relevant state laws and regulations and regulatory documents relevant to governance of listed companies issued by
China Securities Regulatory Commission and Shenzhen Stock Exchange.During the reporting period the company revised and promulgated the Articles of Association Rules of Procedure
for the General Meeting of Shareholders Rules of Procedure of the Board of Directors and Rules of Procedure for
the 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 and
regulatory documents on corporate governance of listed companies issued by China Securities Regulatory
Commission and Shenzhen Stock Exchange.
1. Shareholders and general meeting
The Company standardized the procedures concerning convening holding and voting of general meeting in strict
compliance with the Articles of Association and Rules of Procedure of General Meeting. All shareholders especially
the minority shareholders were equally treated to ensure all shareholders shall rank equal status and can fully
exercise their right. During the reporting period the Company convened 4 shareholders general meetings. In
addition to convening general meeting in forms of site conference the Company offered convenience for
shareholders to present general meeting via network voting which was safe economic and convenient. At the same
time all the matters submitted to the Company’s general meeting of shareholders should count the votes of the small
and medium investors separately and the results of the vote count should be disclosed timely so as to effectively
protect the rights and interests of small and medium investors and ensure that all shareholders especially the small
and medium shareholders fully exercise their rights.
2. The Company and controlling shareholders
57Annual Report 2023
The Company has independent business and independent management capability. The Company and its controlling
shareholders owe independent business personnel assets organs and finance. During the period controlling
shareholder 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 the
Company’s policy-making and business activities beyond the general meeting of stockholders no capital or assets
of 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 articles
of association and the rules of procedure of the board of directors. The voting and information disclosure procedures
of the board of directors comply with relevant regulations. All directors of the company are able to carry out their
work in accordance with the rules of procedure of the board of directors and the independent director system attend
the board of directors and shareholders' meetings seriously exercise their powers in accordance with the law and
fulfill 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 company
decision-making through various forms such as attending meetings on-site inspections reviewing documents and
inquiring with relevant personnel. They carefully review various proposals express pre approval opinions and
independent opinions on related party transactions cash dividends major issues etc. fully play the role of
independent directors in supervision and balance and effectively safeguard the interests of the company and all
shareholders especially small and medium-sized shareholders. The strategy committee compensation and
assessment committee audit committee nomination committee and ESG management committee under the
company's board of directors are five specialized committees. According to the corresponding implementation rules
of each committee they are responsible for discussing making decisions supervising and evaluating major work
matters of the company playing an important role in scientific decision-making improving decision-making
efficiency 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 Articles
of Association and the voting and information disclosure procedures of supervisors’ meeting complied with relevant
requirements. The tenth board of supervisors of the company has five supervisors including two employee
supervisors 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 Rules
of Procedure for the Board of Supervisors supervise the decision-making procedures and resolutions of the board
of directors and the legal operation of the company review the regular reports prepared by the board of directors
and put forward written review opinions and effectively supervise and express independent opinions on the
company's major events related transactions financial status the legality and compliance of directors and senior
executives’ performance of duties by attending the general meeting of shareholders and the meeting of the board of
directors from the perspective of safeguarding the legitimate rights and interests of the company and shareholders.
58Annual Report 2023
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 dismiss
the president secretary of the Board of Directors and other senior management personnel of the company and
decide on their remuneration rewards and punishments; According to the nomination of the president decide to
appoint or dismiss senior management personnel such as the company's vice president and financial officer and
decide 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 the
company 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 and
incentive and restraint mechanisms for directors supervisors and senior management personnel. The appointment
of 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; strengthen
communication and negotiation with each other realizes the coordination and balance of interests for all parties
including society shareholders company and staff pushes forward the sustainable steady and harmonious
development of the Company together.In terms of safeguarding the interests of shareholders the company treats all
shareholders especially the small and medium-sized shareholders equally in strict accordance with relevant
regulations and ensures that all shareholders enjoy equal status and fully exercise their rights by regulating the
convening 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 business
development it has continuously promoted and improved talent mechanisms such as talent reserve learning and
development career planning and guidance whole-process performance management and salary incentive system
regularly evaluated and continuously monitored employees' engagement satisfaction level and corporate culture
evaluation index continuously improved employees' concerns given full play to employees' vitality stimulated
employees' potential and realized employees' personal development goals while achieving organizational goals; In
terms of safeguarding the interests of relevant parties guided by the corporate values of "creating and sharing
together" it has been committed to establishing a win-win cooperation model of common development and common
growth with relevant parties.
7. About information disclosure and transparency
During the reporting period the company strictly complied with relevant provisions of the Listing Rules of
Shenzhen Stock Exchange and the company's Information Disclosure Management System strengthened the
management of information disclosure affairs actively fulfilled its information disclosure obligations and
designated Securities Times China Securities Journal Hong Kong Commercial Daily and Juchao Information
Website（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 of
informed 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 other
legitimate rights and interests.
59Annual Report 2023
8. Investor relations management
During the reporting period the Company continued to well ensure investor relations management deepen
communication 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's
Investor 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 Stock
Exchange fully listened to investors' opinions and suggestions and earnestly protected the interests of small and
medium-sized investors; well ensured answering and replying investors' visits and calls as well as receiving and
replying faxes and e-mails and treated media reports with caution; In order to help investors further understand the
company's operating performance and financial condition the company organized the 2021 online performance
briefing and achieved good results which helped investors to understand the listed companies more
comprehensively and enhanced the transparency of the company; It held the Anhui Investor Service Week of
Shenzhen Stock Exchange - Entering the Listed Companies which further broadened the communication channels
of investors earnestly safeguarded the legitimate rights and interests of investors and constantly promoted and
improved 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 by
CSRC
□Yes √ No
There are no significant differences between the actual state of corporate governance and laws administrative
regulations and the provision with governance concerned for listed companies issued by CSRC
II. Independence of the Company relative to controlling shareholder and the actual controller in ensuring
the Company’s assets personnel finance organization and businesses
The Company totally separated in business personnel assets institutions and financial aspects from Sichuan
Changhong (controlling shareholder) and actual controller State-owned Assets Supervision & Administration
Commission of Mianyang Municipality with independent business accounting responsibility and risk and
independent business operation capability.
1. The business: the Company has an independent and complete business as well as operation ability with
specialized 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 from
controlling shareholders and their subordinate enterprises. The Company is free from interference by controlling
shareholders 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 management
personnel are working in the Company and receive salary not receiving any remuneration and holding position of
any 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
60Annual Report 2023
owns complete assets structure independent production system auxiliary production systems and supporting
facilities land use rights ownership of houses and other assets and independent purchase and sales system. No
assets occupied by controlling shareholders and other affiliates.
4. Institutions: the Company established organization completely independent from controlling shareholders; the
general meeting board of directors board of supervisors and the internal organization are capable of taking
independent action with no controlling shareholder intervention of corporation's decision-making behavior. The
Company 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 system
and 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 extraordinary
shareholders’ general meeting
(i) Annual Shareholders’ General Meeting in the report period
Ratio of
Session of
Type investor Date Date of disclosure Index of disclosure
meeting
participation
Juchao Website
AGM of 2022 AGM 39.8034％ April 252023 April 262023www.cninfo.com.cn( Announcement No.:2023-030）
First
Extraord
Extraordinary
inary Juchao Website
General 36.9723％ May 102023 May 112023General www.cninfo.com.cn( Announcement No.:2023-033）
Meeting of
Meeting
2023
Second
Extraord
Extraordinary
inary Juchao Website
General 34.7820% November 32023 November 42023General www.cninfo.com.cn( Announcement No.:2023-065）
Meeting of
Meeting
2023
Third
Extraord
Extraordinary
inary Juchao Website
General 35.2717% December 212023 December 222023General www.cninfo.com.cn( Announcement No.:2023-080）
Meeting of
Meeting
2023
(ii) Request for extraordinary general meeting by preferred stockholders whose voting rights restore
□ Applicable √ Not applicable
61Annual Report 2023
V. Directors supervisors and senior officers
(i) Basic information
Shares held Shares held Reasons for
Worki Number of shares Number of shares Other
Start dated of office End date of office at period- at period- increase or
Name Title ng Sex Age increased in this decreased in this changes
term term begin end decrease of
status period (share) period (share) (share)
(share) (share) shares
Wu In Not
Chairman Male 51 July 32014 October 122023 570500 0 0 0 570500
Dinggang office applicable
Director In Not
Zhong Ming Male 51 December 302013 October 122023 236175 0 0 0 236175
President office applicable
In Not
Zhao Qilin Director Male 48 December 232021 October 122023 0 0 0 0 0
office applicable
Yong In Not
Director Male 55 September 122017 October 122023 0 0 0 0 0
Fengshan office applicable
Hong Independen In Not
Male 48 October 122020 October 122023 0 0 0 0 0
yuanjia t director office applicable
Independen In Not
Mou Wen Female 57 October 122020 October 122023 0 0 0 0 0
t director office applicable
Independen In Not
Zhao Gang Male 45 October 122020 October 122023 0 0 0 0 0
t director office applicable
Director
Kou In Not
Deputy Male 54 July 32014 October 122023 0 0 0 0 0
Huameng office applicable
president
Director
In Not
Hu Zhaogui Deputy Male 49 June 212018 October 122023 178050 0 0 0 178050
office applicable
president
Chairman In Not
Shao Min Male 41 September 122017 October 122023 0 0 0 0 0
of office applicable
62Annual Report 2023
Supervisory
In Not
He Xintan Supervisor Male 43 September 122017 October 122023 0 0 0 0 0
office applicable
In Not
Huang Hong Supervisor Female 53 September 122017 October 122023 0 0 0 0 0
office applicable
Staff In Not
Ji Ge Female 42 December 252017 October 122023 0 0 0 0 0
supervisor office applicable
Sun Staff In Not
Female 52 March 302021 October 122023 0 0 0 0 0
Hongying supervisor office applicable
Huang Deputy In Not
Male 54 September 122017 October 122023 356450 0 0 0 356450
Danian president office applicable
Centralized
bidding
Tang Deputy In
Male 53 March 282021 October 122023 0 800000 0 0 800000 trading way
Youdao president office
to increase
holdings
CFO
(person in In Not
Pang Haitao Male 48 October 252017 October 122023 0 0 0 0 0
charge of office applicable
finance)
Secretary of In Not
Li Xia Female 43 May 222009 October 122023 414600 0 0 0 414600
the Board office applicable
Executive Office
Liu Not
Deputy leavin Male 60 June 202011 May 252023 1689893 0 0 0 1689893
Hongwei applicable注
president g 2
Total -- -- -- -- -- -- 3445668 800000 0 0 4245668 --
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 the
nomination 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
63Annual Report 2023
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 will
continue to perform their corresponding obligations and responsibilities before the completion of the re-election without adversely affecting the continuity and stability
of 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.
64Annual Report 2023
1. During the reporting period whether there was any departure of directors and supervisors
and dismissal of Senior Officers
√Yes□No
On May 25 2023 Mr. Liu Hongwei Executive Vice President of the Company resigned as the
executive vice president of the Company for personal reasons. On January 12 2024 Mr. Liu
Hongwei completed the retirement formalities because his retirement age was reached and did not
hold any position in the Company and its
2. Changes of directors supervisors and senior executives
√Applicable□Not applicable
Name Title Types Date Reason
Executive
Liu Dimissio Due to personal reasons he appoint to resign from his position as executive
vice May 252023
Hongwei n vice president of the company
president
(ii) Post-holding
1. Professional background major working experience and present main responsibilities in
Company 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 (Tianjin
University of Commerce now) major in refrigeration equipment and cryogenic technique. He served
successively as GM of Suining Sale Branch and Chengdu Sales Branch of Sichuan Changhong Electric
Co. LTD director of Sichuan and Chongqing Marketing Management Department of Sichuan
Changhong Electric Co. LTD deputy GM of Changhong Electronics (China) Marketing Co. GM of
market planning center of Changhong Multimedia Industry director and GM of Le-Jia-Yi Chain
Management Co. Ltd. ZhongkeMeiling Cryogenic Technology Co. Ltd. director and GM of Sichuan
Changong Air Conditioner Co. Ltd and deputy president president deputy chairman and Party
Secretary 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 of
Sichuan Changhong Air-conditioner Co. Ltd. and Chairman of ZhongkeMeiling Cryogenic Technology
Co. Ltd.
(2) Zhong Ming male the Han nationality from Meishan Sichuan Province was born in November
1972 member of CPC a senior engineer doctoral degree EMBA degree from University of Science
and Technology of China PhD degree in Engineering Thermophysics. He successively served as deputy
director of research institution of Sichuan Changhong Air-conditioner Co. Ltd. deputy GM of Sichuan
Changhong Air-conditioner Co. Ltd. and technical director of household appliance group of Sichuan
Changhong Electric Co. Ltd. He serves as director President and Party Secretary of the Company
currently Chairman of Zhongshan MeilingWulian Technology Co. Ltd. Director of Sichuang
Changhong Air-conditioning Co. Ltd. and Director of Zhongke Meiling Low Temperature Technology
65Annual Report 2023
Co. Ltd.
(3)Zhao Qilin male Han nationality born in September 1975 graduated from Southwestern University
of Finance and Economics with a bachelor's degree in rural finance and served as accountant of the
financial department investment project manager asset management manager of asset management
department manager of investment management department and securities affairs representative of
Sichuan Changhong Electric Co. Ltd.; financial manager of Sichuan Changhong Innovation Investment
Co. 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 of
directors 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 the
Communist Party of China a senior accountant with a university degree and a Master's degree in
Business Administration. He has served as the Director of the Finance Department of Hefei Cable
Factory 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. the
Party Secretary General Manager and Chairman of Hefei Industrial Investment Holding Co. Ltd. and
the Party Secretary and Chairman of Hefei Industrial Investment Holding (Group) Co. Ltd. Current
positions include Secretary of the Party Committee and Chairman of Hefei Construction Investment
Holdings (Group) Co. Ltd. Chairman of Hefei Weixinnuo Technology Co. Ltd. Chairman of Hefei
Construction 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 master
degree graduated from Shanghai University of Finance and Economics majoring in international
business management and is Fudan University MPAcc (Master of Accounting) CPA International
Accountant (AIA) intermediate accountant and intermediate economist. He once served as the foreign
currency payable supervisor and investment supervisor of China Eastern Airlines Co. Ltd. the deputy
manager of the financial department of the Shanghai Representative Office of SanchengHongji (Hong
Kong) Co. Ltd. the accounting manager of General Electric Lighting Co. Ltd. the accounting manager
of 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 Asia
Pacific 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's
degree 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 an
Associate Professor of Accounting in the School of Business Administration of Sichuan University an
independent director of Tibet Mineral Development Co. Ltd. Sichuan Jinlu Group Co. Ltd. Huayi
Compressor Co. Ltd. Jinhui Liquor Co. Ltd. Sichuan Teway Food Co. Ltd. and Hebei Baoli
66Annual Report 2023
Engineering Equipment Group Co. Ltd. a member of Investment Decision Advisory Committee of
Sichuan 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 Sichuan
University and an independent director of Chengdu Guibao Science and Technology Co. Ltd.MianyangFulin Precision Machinery Co. Ltd. Sichuan Joyou Digital Technology Co. Ltd. Tibet
Mineral 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 the
Communist Party of China holds a doctoral degree graduated from the University of Science and
Technology of China majoring in power engineering and thermophysics. He once served as a post
doctorate and an associate professor in the Department of Mechanics and Mechanical Engineering of the
University of Science and Technology of China a professor of orbital systems in the Department of
Electronic Science and Technology a special researcher for foreigners in the Japan Society for the
Promotion of Science School of Engineering Kyushu University Japan and a senior research scholar
in the Department of Mechanical Engineering at the University of Washington. He is currently the
executive director professor and doctoral supervisor of the Department of Electronic Science and
Technology of the University of Science and Technology of China the deputy director of the Anhui Life
Resources Conservation and Artificial Organ Engineering Technology Research Center a part-time
professor of the Department of Mechanical Engineering of the University of Washington and an
independent director of the Company.
(8) Kou Huameng male the Han nationality from Yanting Sichuan Province was born in February
1970 Member of CPC master degree candidate EMBA graduate from UESTC. He served successively
as deputy director of production office of Sichuan Changhong Electric Co. LTD director of Guangxi
Marketing management Committee director of Fujian-Jiangxi Marketing Management General
Manager of Changhong Audiovisual Company and director and GM of Guangdong Changhong Digital
Technology Co. Ltd.; Sichuan Changhong Electric Co. Ltd director of development management
department 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 the
Communist Party of China holds a master’s degree graduated from Chongqing University as a master
of business administration. He has served successively as the head of marketing and sales department
stationed abroad of Hefei Meiling Co. Ltd. assistant president and general manager of the freezer and
washing machine business division and general manager of the domestic marketing division. He is
currently the director and vice president of the Company and the general manager of Sichuan Changhong
Air Conditioner Co. Ltd.
(10) Shao Min male Han nationality was born in Linyi Shandong in March 1983 and earned a
bachelor’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 Changhong
Electric Co. Ltd. the financial director of finance department the project manager of asset management
67Annual Report 2023
department manager of Assets Operation Division of Assets Management Dept deputy director and
director of the Assets Management Dept.of Sichuan Changhong Electric Co. Ltd. He currently serves
as the head of Capital Operation Dept.of Sichuan Changhong Electric Co. Ltd. director of
ChanghongHuayi 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 the
Communist Party of China an economist and earned a master’s degree in management science and
engineering from Xi’an Jiaotong University. He joined in work in July 2002 and successively took the
posts of the operations management director of operation management department and the manager of
general management office of Sichuan Changhong Electric Co. Ltd. the deputy director of development
and management department of Sichuan Changhong Electric Co. Ltd. and a director of
ChanghongHuayi Compressor Co. Ltd.Currently he serves as assistant to General Manager of Sichuan
Changhong 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 of
the Communist Party of China a master degree holder graduated from the University of Glasgow as a
MBA and a senior auditor. She joined in work in July 1992 and ever served as the financial director of
finance department the audit manager marketing audit director and audit chief of auditing department
of Sichuan Changhong Electric Co. Ltd. He currently serves as the deputy director of auditing
department 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 member
of the Communist Party of China and earned a bachelor’s degree in law from Hunan University and a
master’s degree from Anhui University. She joined Hefei Meiling Co. Ltd. in July 2005 and once served
as the legal specialist of legal department the sponsor of legal affairs and the intellectual property
director of the legal department of the Company. She currently serves as head of director office and risk
control compliance dept and staff supervisor of the Company.
(14)Sun Hongying female Han nationality native of Tongcheng Anhui born in March 1972 member
of the Communist Party of China master degree intermediate accountant graduated from Hefei
University of Technology with a major in accounting. She successively served as deputy director of the
cost center director of the financial department of the refrigerator business division and deputy director
of the financial management department of Changhong Meiling Co. Ltd.. She currently serves as
employee supervisor and deputy director of the refrigerator and freezer division of the finance and
economics department of the Company.
(15) Huang Danian male Han nationality was born in Huaining Anhui in November 1969 a member
of the Communist Party of China a senior engineer and a master degree holder. He once served as the
logistics director and the deputy general manager the director of the human resources department the
director of the comprehensive planning department head of budget management dept. and the assistant
to the general manager of Sales Company of Hefei Meiling Co. Ltd. He is now the vice president of the
68Annual Report 2023
Company.
(16)Tang Youdao male Han nationality was born in Xuancheng Anhui in July 1970 a undergraduate
degree and graduated from Wuhan University of Technology majoring in industrial management
engineering. He hold jobs successively as overseas marketing manager head of marketing dept. head
of overseas marketing dept. and general manager of overseas business division under the name of Hefei
Meiling Co. Ltd. Currently vice president and general manager of overseas refrigerator/washing
machine division of the Company.
(17) Pang Haitao male Han nationality was born in Qionghai Hainan in May 1975 a member of the
Communist 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 a
member of the finance department the director of related transactions and the director of capital
operations of Sichuan Changhong Electric Co. Ltd. the chief of finance office of Guangdong
Changhong 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 Changhong
Electric Co. Ltd. the deputy general manager and chief financial officer of Sichuan Changhong
Development 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 Xiafemale the Han nationality from Qionglai Sichuan Province was born in October 1980
Member of CPC and Intermediate Accountant with Master Degree. She graduated from Accounting
Department of Sichuan University Business and Management School. She ever was Project Manager in
Financing & Acquisition Office of Asset Management Department and Business Executive in Board
Office of Sichuan Changhong Electronic Co. Ltd. she took the posts of Deputy GM and Financial
Supervisor of Sichuan Changhong Innovation Investment Co. Ltd. and chairman of supervisory
committee ofZhongkeMeiling Cryogenic Technology Co. Ltd. She is the Secretary of the Board deputy
secretary of the Party secretary of discipline inspection commission and general counselof the Company
recently.
（19） Liu Hongwei Male Chinese American bored in May 1963 Doctor of Applied Mechanics from
Lehigh University graduate from department of mechanical engineering Tsinghua University. He
served successively in Kulicke and Soffa Industries Pennsylvania; Tessera Technology Corporation
Califonia; serves technical and management post in Intel Corporation in Silicon Velleg. He joints the
Hefei Meiling Co. Ltd. in 2007 served as the Executive Vice President of the Company. He resigned as
the Executive Vice President of the Company on May 25 2023. On January 12 2024 Mr. Liu Hongwei
completed the retirement formalities because his retirement age was reached and did not hold any
position in the Company and its subsidiaries.
2. Post-holding in shareholder’s unit
√ Applicable □ Not applicable
69Annual Report 2023
Drawing
remuneration and
Start date of End date of office
Name Shareholder’s unit Title allowance from
office term term
shareholder’s unit
(Y/N)
Sichuan Changhong Electric Co.Wu Dinggang Deputy GM 2023.12.29 2026.12.29 Yes
Ltd.Hefei Industry Investment Holding
Yong Fengshan Party Secretary Chairman 2015.02 2024.01.19 Yes
(Group) Co. Ltd.Secretary of the Board of
2023.12.29 2026.12.29 Yes
Directors
Chief Compliance Officer 2023.12.29 2026.12.29 No
General counsel 2022.02.14 - No
Director of the office of 2021.03.29 No
Sichuan Changhong Electric Co. -
ZhaiQilin the Board of Directors
Ltd.Director of the 2023.01.09 No
-
management office of ESG
The Minister of the 2024.01.26 No
General Management -
Department
Post-holding in shareholder’s unit N/A
3. Post-holding in other unit
√ Applicable □ Not applicable
Drawing
remuneration
Start date of office End date of office
Name Other unit Title and allowance
term term
from other unit
(Y/N)
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. Chairman
Wu Dinggang 2019.06.10 - No
Ltd.Mianyang Kuaiyidian Electric Appliance Service Chairman
2022.11.04 - No
Chain Co. Ltd.Sichuan Kuaiyidian Electric Appliance Service
Zhong Ming Director 2022.03.15 - No
Chain Co. Ltd.Yong Hefei Venture Capital Guidance Fund Co. Ltd. Chairman 2024.01 - Yes
Fengshan 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
Sichuan Changhong Innovation Investment Co.Director 2021.01.21 - No
Zhao Qilin Ltd.WIDEMIRACLELIMITED Director 2014.07.14 - No
70Annual Report 2023
Ganghong Industrial Co. Ltd. Director 2013.06.18 - No
SUFFICIENTVALUEGROUPLIMITED Director 2013.06.18 - No
ChanghongJiahua (Hong Kong) Information
Director 2021.01.08 - No
Products Co. Ltd.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
Lejiayi Chain Management Co. Ltd. Director 2018.01.23 - No
Sichuan Zhiyijia Network Technology Co. Ltd. Director 2019.07.25 - No
Hu Zhaogui 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
Associate professor
Business School of Sichuan University 1995.02 - Yes
master tutor
Mou Wen
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
Director Professor
Zhao Gang University of Science and Technology of China 2011.04 - Yes
Doctoral Supervisor
Sichuan Changhong Electronics Holding Group
Deputy GM 2023.12.21 2026.12.21 Yes
Co. Ltd.ChanghongHuayi Compressor Co. Ltd. Director 2021.02.25 2024.05.12 No
Shao Min Sichuan Changhong New Energy Technology
Director 2018.05.10 2024.12.19 No
Co. Ltd.Sichuan Changhong Gerun Environmental
Director 2018.01.01 2025.02.09 No
protection Technology Co. Ltd.He Xintan Zhongjiu Flash Medical Technology Co. Ltd Director and General 2023.03 - Yes
Manager
Huang Hong Sichuan Changhong Electronics Holding Group Deputy Director of Audit 2011.09.16 - Yes
Co. Ltd. Department
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 current
and 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 management
Implemented in line with laws regulations and relevant rules of “Company Law” “Article ofAssociation” and “Enforcement Regulation of Remuneration and Evaluation Committee of the Board”
71Annual Report 2023
including:
Allowance plan of independent directors are implemented after deliberated in the Board and approved
in Shareholders’ General Meeting. Other directors and non-staff supervisors except independent
directors are received no remuneration from the Company.Remuneration of senior executives are deliberated and approved by the Board according to remuneration
evaluation plan together with opinions of Remuneration and Evaluation Committee.The remuneration appraisal and payment for directors and senior executive of the Company for Current
Year will disclose in the Annual Report after review without objection from Remuneration & Appraisal
Committee of the Board and submit to the BOD for Current Year.
(2) Bases on which remunerations of directors supervisors and senior management are decided
According to the company's basic salary system combined with the industry salary level and salary
orientation following the salary management concept of "post value reflected and performance-
oriented" giving full play to the incentive function of salary closely combining employee compensation
with 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 the
performance salary is cashed according to the performance evaluation results.
(3) Actual payment of remunerations of directors supervisors and senior management
Allowance 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-staff
supervisors except independent directors did not received remuneration from the Company;
remunerations for senior executives of the Company are paid strictly by the unify remuneration valuation
mechanism 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 their
remuneration by actual positions (non-supervisor post); furthermore 3 independent directors are
received the allowance monthly from the Company; the Company will pay remuneration to senior
executives in line with the performance appraisal by monthly quarterly and annual.During the reporting period the Company has established the executive compensation and performance
management program for the senior management of 2022 in accordance with the main scope the
responsibilities the importance of the management positions of the senior management and the
compensation level of other relevant company and position the program includes but not limited to the
company's key performance indicator (KPI) and performance evaluation criteria procedures and major
evaluation system; the major programs of the reward and punishment; review the performance of duties
of the company's senior management and conduct the annual performance appraisal.
2. Remuneration for directors supervisors and senior executives in reporting period
In RMB 10000
Name Title Sex Age Post status Total Whether
72Annual Report 2023
remuneration remuneration
obtained from the obtained from
Company (before related party of
taxes) 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
CFO (person in charge of 48 No
Pang Haitao Male In Office 93.78
finance)
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
Date of meeting Disclosure date Meeting resolutions
meeting
The Board of Directors reviewed and approved three proposals namely Proposal on the
The 30th Company's Participation in the Establishment of Sichuan Hongyun Information
session of January 162023 Janupary 182023 Technology Venture Capital Fund and Related Transactions Proposal on the Bad Debt
10thBOD Provision Accrued Individually for Receivables of Changhong RUBA Electric
Appliance Co. Ltd. and Proposal on the Bad Debt Provision Accrued Individually for
73Annual Report 2023
Single Receivable of Gome System，for details please refer to the "Resolution Noticeof the 30th session of 10thBOD" (No. 2023-002) on the cninfo website (Juchao Website
(www.cninfo.com.cn)).The Board of Directors reviewed and approved 21 proposals including the Work Report
The 31st of the Board of Directors in 2022 the Work Report of the President in 2022 the Annual
session of March 302023 March 312023 Report and Summary of Annual Report in 2022，for details please refer to the
10thBOD "Resolution Notice of the 31st session of 10thBOD" (No. 2023-011) on the cninfo
website (Juchao Website (www.cninfo.com.cn)).The Board of Directors reviewed and approved 14 proposals including the Report on
The 32nd the First Quarter of 2023 the Proposal on Provision for Credit Impairment and the
session of April 192023 April 202023 Proposal on Provision for Asset Impairment，for details please refer to the "Resolution
10thBOD Notice of the 32nd session of 10thBOD" (No. 2023-023) on the cninfo website (Juchao
Website (www.cninfo.com.cn)).The Board of Directors reviewed and approved 11 proposals including the Full Text and
The 33rd Summary of the Semi-annual Report in 2023 the Proposal on Provision for Credit
session of August 162023 August 182023 Impairment and Proposal on Provision for Asset Impairment，for details please refer to
10thBOD the "Resolution Notice of the 33rd session of 10thBOD" (No. 2023-040) on the cninfo
website (Juchao Website (www.cninfo.com.cn)).he Board of Directors reviewed and approved 4 proposals including the Proposal on
Extension and Related Transactions of Sichuan Hongyun New Generation of
The 34th
Information Technology Venture Capital Fund Partnership (Limited Partnership) and the
session of September 72023 September 82023
Proposal on Increasing the Daily Related Transactions in 2023，for details please refer
10thBOD
to the "Resolution Notice of the 34th session of 10thBOD" (No. 2023-044) on the cninfo
website (Juchao Website (www.cninfo.com.cn)).he Board of Directors reviewed and approved 17 proposals including the Proposal on
Renewing the Financial Services Agreement and Related Transactions between the
The 35th
Company and Sichuan Changhong Group Finance Co. Ltd. and the Proposal on
session of October 162023 October 182023
Continuous Risk Assessment of Sichuan Changhong Group Finance Co. Ltd.，for
10thBOD
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 Board of Directors reviewed and approved 5 proposals including the Report on the
The 36th Third Quarter of 2023 the Proposal on Provision for Credit Impairment and the
session of October 232023 October 242023 Proposal on Provision for Asset Impairment，for details please refer to the "Resolution
10thBOD Notice of the 36th session of 10thBOD" (No. 2023-060) on the cninfo website (Juchao
Website (www.cninfo.com.cn)).The Board of Directors reviewed and approved 19 proposals including the Proposal on
Predicting Daily Related Transactions in 2024 and the Proposal on Predicting
The 37th
Continuous Related Transactions between the Company and Its Subsidiaries and
session of December 42023 December 52023
Sichuan Changhong Group Finance Co. Ltd. in 2024，for details please refer to the
10thBOD
"Resolution Notice of the 37th session of 10thBOD" (No. 2023-066) on the cninfo
website (Juchao Website (www.cninfo.com.cn)).The 38th The Board of Directors reviewed and approved 2 proposals namely the Proposal on
December 182023 December 192023
session of Increasing the Daily Related Party Transactions in 2023 and the Proposal on
74Annual Report 2023
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
Times of
Times of Board
Times of Times of Times of Absent the Meeting for attending the
meeting supposed Times of
Director present in attending by entrusted the second time in a row shareholder
to attend in the Absence
person communication presence (Y/N) general
report period
meeting
Wu Dinggang 10 2 8 0 0 No 3
Zhong Ming 10 1 9 0 0 No 3
Yong
10 0 10 0 0 No 0
Fengshan
Kou
10 1 9 0 0 No 4
Huameng
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 row
During the reporting period none of the directors failed to attend two consecutive Board Meeting in
person.(iii) Objection for relevant events from directors
Whether 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 directors
Whether 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 the
Securities Law the Listing Rules of Shenzhen Stock Exchange and the Self-Discipline Supervision
Guidelines for Listed Companies of Shenzhen Stock Exchange No. 1 - Standardized Operation of Main
Board Listed Companies" and other laws and regulations actively attended the company's board
meetings and the company's general meeting of shareholders performed duties conscientiously and
diligently made prudent and scientific decisions on various matters reviewed by the company's board
meetings and all their professional suggestions on the company’s major decisions have been adopted .
75Annual Report 2023
VII. The special committees under the board during the reporting period
Specific
Number Other
circumstanc
Committ of Important comments and perform
Members Meeting content es of the
ee name meetings Date of meeting suggestions made ance of
objection (if
held duties
applicable)
The reviewed 1 proposals
namely Proposal on the
Company's Participation in
Wu Dinggang The proposal was deliberated and Not
the Establishment of
Zhong Ming January 132023 passed and agreed to be submitted applicab No
Sichuan Hongyun
Yong to the board of directors of t le
Strategy Information Technology
Fengshan Kou
Committ 2 Venture Capital Fund and
Huameng
ee Related Transactions
Zhao Qilin Hu
t reviewed and approved a
Zhaogui Zhao
total of one proposal The proposal was deliberated and Not
Gang
March 192022 namely the Proposal on the passed and agreed to be submitted applicab No
Company's Development to the board of directors of t le
Plan in 2023
Two proposals were
deliberated namely the
Company's 2022 Financial
Accounting Statement and Not
All proposals were deliberated and
January 122023 Internal Control Audit applicab No
passed.Schedule and the le
Company's 2022 Unaudited
Financial Accounting
Statement.A total of 1 proposal was
deliberated namely the
Audit Hong Yuanjia Not
First Draft of the Audit of The proposal were deliberated and
Committ Mou Wen 7 March 62023 applicab No
the Company's Financial passed
ee Zhao Gang le
Accounting Statements in
2022.
Five proposals were All the proposals were deliberated
deliberated namely the and passed and four proposals were
Audited Financial agreed to be submitted to the Board
Accounting Report of the of Directors for deliberation Not
March 302023 Company in 2022 Audit namely the Audited Financial applicab No
Report on Internal Control Accounting Report of the Company le
in 2021 Summary Report in 2022 Audit Report on Internal
on the Company Audit Control in 2022 the Proposal on
Work by ShineWing Renewing the Appointment of the
76Annual Report 2023
Certified Public Financial Report Internal Control
Accountants in 2022 Auditing Organization and Payment
Proposal on Renewing the of Remuneration in 2023 and
Appointment of the Proposal on the Company's Forward
Financial Report Internal Foreign Exchange Fund Trading
Control Auditing Business.Organization and Payment
of Remuneration in 2023
and Proposal on the
Company's Forward
Foreign Exchange Fund
Trading Business.A total of 2 proposal was
deliberated namely the The proposal was deliberated and Not
April 172023 Financial Statement of the passed and agreed to be submitted applicab No
Company for the First to the board of directors of t le
Quarter of 2023.A total of 1 proposal was
deliberated namely the The proposal was deliberated and Not
August 62023 Semi-annual Financial passed and agreed to be submitted applicab No
Report of the Company in to the board of directors of t le
2023
A total of 1 proposal was
deliberated namely the The proposal was deliberated and Not
October 202023 Financial Statement of the passed and agreed to be submitted applicab No
Company for the Third to the board of directors of t le
Quarter of 2023
It reviewed and approved a
total of one proposal
namely the Proposal on the
Not
Company's Selection and The proposal were deliberated and
December 282023 applicab No
Recruitment of Audit passed
le
Service Accounting Firm
for Annual Report from
2024 to 2026.
Remuner It deliberated and passed the
It deliberated the
ation and Wu Dinggang remuneration assessment of
March remuneration assessment Not
Appraisa Zhao Gang directors and senior management
2 192023December and payment of directors applicab No
l Mou Wen personnel and agreed to submit it to
252023 and senior management of le
Committ Hong Yuanjia the Board of Directors of the
the company in 2022.ee company for deliberation.
77Annual Report 2023
A total of 2 proposal was
deliberated
"Proposal on Expecting Dai
ly Related Transactions in 2
The proposal was deliberated and Not
024" "Proposal on Expecti
Special December 12023 passed and agreed to be submitted applicab No
ng Continued Related Tran
meetings to the board of directors of t le
Hong Yuanjia sactions between the Comp
of
Mou Wen 2 any and its Subsidiaries and
independ
Zhao Gang Sichuan Changhong Group
ent
Finance Co. Ltd.directors
A total of 1 proposal was
deliberate Proposal on The proposal was deliberated and Not
December 152023 Increasing the Daily passed and agreed to be submitted applicab No
Related Party Transactions to the board of directors of t le
in 2023
VIII. Works from Supervisory Committee
Whether the Company has risks or not in reporting period that found in supervisory activity from
supervisory committee
□Yes √ No
Supervisory committee has no objection about supervision events in reporting period
IX. Staff of the Company
(i) Numbers professional structure and education background
On-job employee in parent company at period-end (people) 4898
On-job employee in main subsidiary at period-end(people) 11251
Total on-job employees at period-end(people) 16149
Current total payroll(people) 16149
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 8989
Salesman 4495
Technician 1795
Financial staff 295
Administration staff 575
Total 16149
Education background
Type of education background Numbers (people)
High school and below 10979
Junior college 2190
Undergraduate 2792
78Annual Report 2023
Master and above 188
Total 16149
(ii) Remuneration policy
The Company formulated human resources and compensation policy conducive to sustainable
development of enterprise according to the provisions of relevant laws and policies promulgated by the
state and to the Company's actual situation.The company continued to promote the performance growth index system defined the direction of
employee performance growth and progress effectively encouraged employees to take the initiative to
find 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 mechanism
that is suitable for it and optimized the post value evaluation and remuneration adjustment mechanism
to enhance the internal fairness and external competitiveness of the company's remuneration and
strengthen the salary concept of "post value reflected and performance-oriented". In order to promote
the achievement of each unit's performance this year the company will further optimize and adjust the
incentive system strengthen the quantitative embodiment of operating results and incremental value
and design differentiated incentive schemes according to the characteristics of different business units
with consideration of system balance so as to realize the effectiveness of positive guidance and
effectively stimulate the business vitality of each business unit.During the reporting period the company further optimized the position promotion evaluation and
employment mechanism improved the position system and the promotion channels in sequence and
further stimulated the team's vitality through the integrating system evaluation and employment
performance growth system and other mechanisms and matched the dynamic adjustment of
remuneration; 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 the
company.(iii) Training plans
The company aimed at creating a learning organization continuously optimized training and talent
development and built talent standards and competency models of each sequence based on the
company's annual talent development and training program; built Meiling online learning system and
knowledge asset management system to extract and precipitate internal experience and ability; organized
the implementation of internal and external special precision training programs; carried out projects such
as learning map and talent structure optimization and gradually formed a growth mechanism that
combined training with employee growth and career development.
1. Further develop the mechanism of selecting educating using and retaining reserve talents. The
company has established a clear talent standard evaluation model to complete the talent standards for
management positions supervisor-level positions and various professional positions in all sequences;
79Annual Report 2023
established a succession map of talents in key positions in each sequence and clarified the current
situation 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 and
optimized and adjusted the echelon structure of middle and senior reserve cadres A-class reserve
successors A-class reserve learning B-class reserve supervisors excellent college students and other
talents through the selection of young reserve cadres who were born after 1990 and the regular review
and evaluation of reserve talents in the library. At the same time based on the needs of future business
development 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 has
built a multi-level and multi-category talent training system. On the one hand it improved the training
enthusiasm and professional ability of the trainees through activities such as project integrating system
and industry exchange; on the other hand it introduced external training courses and internal course
development to effectively promote the precision training program in view of the common shortcomings
of the team and shortcomings of personal ability; According to the professional ability of key positions
in the professional level it built a learning map and defined the map of growing professional routes; At
the same time it established the training organization guarantee system and built the company's
classified and graded talent training system. Through career planning analysis course orientation
promotion node control project review training examination and other ways it guided the vertical
(promotion) and horizontal (multi-skilled workers rotation) all-round development effectively and
achieved the training effect and talent promotion gradually.
3. Enrich the company's internal knowledge asset management system redefine the company's
intellectual assets standards and organizational guarantee system. On the one hand it continued to
supplement and update the teaching materials of Meiling's knowledge assets library on technology
management manufacturing quality safety and environmental protection; On the basis of "internal
trainer certification system" and "benchmarking post knowledge extraction project" optimized the
professional series of live courses internalized the company's standard talent knowledge base and carried
on the inheritance and influence; On the other hand it carried out the learning map project and designed
the learning map through the process structure finance and other sequences so as to closely connect
the qualifications of specific positions with the learning map and to combine the talent development
with the learning development organically and to promote the scientific systematic and efficient training
of 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 Cash
Dividend policy during the Reporting Period
√ Applicable □ Not applicable
During the reporting period the company has strictly executed the profit distribution policy in
80Annual Report 2023
accordance with the "Articles of Association" the formulation and implementation of the company's cash
dividend policy are in line with the provisions of "Articles of Association" and the requirements of the
resolutions of shareholders' meeting the dividends standards and proportion have been definite and clear
relevant decision-making procedures and mechanisms have been complete the responsibilities of
independent directors have been clear and have played its due role minority shareholders have had the
opportunities to fully express their views and aspirations and the legitimate interests of minority
shareholders have been maintained.During the reporting period the company implemented the annual profit distribution plan for 2022 that
is based on the total share capital of 1029923715 shares on date of record at the time of implementing
the 2022 annual equity distribution plan (including 881733881 shares of A shares and 148189834
shares of B shares) the company distributed a cash dividend of RMB 0.9 (including tax) for every 10
shares to all shareholders with a total cash dividend of RMB 92693134.35.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
Not applicable
next steps to be taken to enhance investor returns:
Minority shareholders have opportunity to express opinions and demands totally and their legal rights
Y
are fully protected (Y/N):
Condition and procedures are compliance and transparent while the cash bonus policy adjusted or
Y
changed (Y/N):
(ii) The Company is profitable during the reporting period and the parent company has positive
profit available for distribution to shareholders without cash dividend distribution plan
proposed
□ 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) 1029923715
Total cash dividend (RMB) (Tax included) 308977114.50
Cash dividend for other ways (i.e. repurchased) (RMB) 0
Total cash dividend (including other way) (RMB) 308977114.50
Profits available for distribution (RMB) 1294109238.10
81Annual Report 2023
Ratio of cash dividend (including other way) in total profit
100%
distribution
Cash dividend
Taking the total share capital of 1029923715shares 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 358345033.36. As of December 31 2023 the cumulative
undistributed profit in individual financial statements of the parent company was RMB 1294109238.10. 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 741038108.54 yuan. As of December 31 2023 the cumulative undistributed 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 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 1294109238.10 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 1029923715 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 30897714.50 yuan. After
this distribution it is expected that the remaining cumulative undistributed profit of the parent company will be 985132123.60
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 or
other employee incentives
□ Applicable √ Not applicable
The Company has no equity incentive plan employee stock ownership plans or other employee
incentives.XII. Construction and implementation of internal control system during the reporting period
(i) Construction and implementation of internal control
In accordance with the Basic Norms for Enterprise Internal Control and its supporting guidelines and
the Information Disclosure Compilation Rules for Companies Publicly Issuing Securities No. 21 -
General Provisions on Annual Internal Control Evaluation Reports jointly issued by the China Securities
Regulatory Commission and the Ministry of Finance and other relevant regulations and combined with
the Company's internal control system and internal control evaluation methods the company organized
its internal control work effectively implemented internal control and continuously improved and
optimized the company's internal control system so as to adapt to the needs and changes of the internal
and external environment.The company's 2023 Annual Internal Control Self-Assessment Report fully truly and accurately
reflected the actual situation of the company's internal control. The units businesses and matters
included in the assessment scope as well as high-risk areas covered the main aspects of the company's
82Annual Report 2023
operation and management and the company maintained effective internal controls in high-risk areas
and in all material aspects. During the reporting period the company had no major defects and significant
defects 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 Integration Integration Problems encountered Resolve Follow-up
Actions taken
company plan progress in integration progress 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 302024
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
99.89%
accounting for the total assets on the company's consolidated financial statements
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 100.00%
statements
Defects Evaluation Standards
Category Financial Reports Non-financial Reports
1. Material defect: severally or jointly with other defects will lead to
material wrong reporting in financial reports being not able to Occurrence of the followings shall be
prevented or found or rectified in a timely manner. Occurrence of the deemed as material defect otherwise as
followings will be deemed as material defect: major defect or general defect subject to
1. inefficiency of environment control; the level of influence.
2. fraud of directors supervisors and senior management; 1. breach of national laws regulations or
3. The external auditor finds material wrong reporting in current regulatory documents;
financial statement while the Company has not found such reporting 2. procedure for making significant
during its operation; decisions is not scientific;
Qualitative
4. The material defect identified and reported to the management fails 3. absence of system may lead to invalid
criteria
to be rectified in a reasonable time period; system;
5. The audit committee and audit department of the Company exercise 4. Material or major defects are not likely
invalid supervision upon internal control; to rectify;
6. Other defects which may affect financial statement users to make 5. Large negative effects on the company
correct judgment. and disclosed in the form of
2. Major defect: severally or jointly with other defects will lead to announcement;
wrong reporting in financial reports being not able to prevented or 6. Other issues that materially affect the
found or rectified in a timely manner which still needs attention from Company.the management though it doesn’t reach or exceed material defect as
83Annual Report 2023
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.
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
1. Proportion of potential wrong reporting in total operating defect: wrong reporting＜0.05%.
income: Material defect: wrong reporting ≧0.5%; Major defect: 0.1% 2. Proportion of direct property loss in
≤ wrong reporting＜0.5%; General defect: wrong reporting＜0.1%. total profit: Material defect: wrong
2. Proportion of potential wrong reporting in total profit: Material reporting ≧10%; Major defect: 5% ≤
defect: wrong reporting ≧10%; Major defect: 5% ≤ wrong reporting wrong reporting＜10%; General defect:
Quantitative ＜10%; General defect: wrong reporting＜5%. wrong reporting＜5%.standard 3. Proportion of potential wrong reporting in total assets: Material 3. Proportion of direct property loss in
defect: wrong reporting ≧0.5%; Major defect: 0.1% ≤ wrong reporting total assets: Material defect: wrong
＜0.5%; General defect: wrong reporting＜0.1%. reporting ≧0.2%; Major defect: 0.1% ≤
4. Proportion of potential wrong reporting in total owners’ wrong reporting＜0.2%; General defect:
equity: Material defect: wrong reporting ≧0.5%; Major defect: 0.1% wrong reporting＜0.1%.≤ wrong reporting＜0.5%; 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
0
financial reports
Amount of significant defects in non- 0
84Annual Report 2023
financial reports
Amount of important defects in financial
0
reports
Amount of important defects in non-
0
financial reports
(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 302024
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 listed
companies
√Yes□No
For details please refer to Article 15 of Chapter IV "Rectification of Problems Found in Self-inspection
of Special Actions for Governance of Listed Companies" in the Company's Annual Report in 2022. Up
to 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 1141053 restricted shares of the
Company. The restricted shares held by Meiling Group were the consideration shares received for the
share reform on behalf of other non-tradable shareholders in the company's reform plan for non-tradable
shares. In March 2016 according to the approval of the State-owned Assets Supervision and
Administration Commission of the State Council the 49477513 state-owned shares (including the
already held 47823401 shares and the unrecovered relevant rights of the consideration of 1654112
shares received for the share reform on behalf of other non-tradable shareholders in the company's reform
plan for non-tradable shares) of the Company held by Hefei Xingtai Holdings Group Co. Ltd. the
company'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 Industry
Investment Group free of charge.
85Annual Report 2023
2. According to the approval of the State-owned Assets Supervision and Administration Commission of
the State Council and the regulations of relevant departments Meiling Group should transfer the shares
paid on behalf of others and related rights held by it to Industry Investment Group at one time free of
charge after recovering all the 1654112 shares of consideration for the share reform. At present Meiling
Group has only recovered 1141053 shares and the holders of the remaining consideration shares for
the share reform have been unable to get in touch for many times and for many years there is great
uncertainty about the time when all the shares will be recovered. However the company still actively
promotes the recovery of the shares advanced by Meiling Group and handles the relevant procedures
for 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 as
shareholders during the holding period including voting rights dividend rights etc.
86Annual Report 2023
V. Environmental & Social Responsibility
I. Major environmental
The listed Company and its subsidiary whether belongs to the key sewage units released from environmental
protection department
√ Yes □ No
The Company and subordinate subsidiaries Changhong Air-conditioning are not belongs to the key emission units
announced 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 the
Environmental Protection Law of the People's Republic of China Environmental Impact Assessment Law of the
People'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 Prevention
and Control of Environmental Pollution by Solid Waste of the People's Republic of China Regulations on the
Administration of Construction Project Environmental Protection Environmental Protection Regulations of Anhui
Province 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-monitoring
according to regulations in which for VOCs refer to Table 3 of Emission Standard for Atmospheric Volatile Organic
Compounds from Stationary Pollution Sources in Sichuan Province DB51/2377-2017; For nitrogen oxides refer to
the secondary standard in Table 2 of Comprehensive Emission Standard for Air Pollutants (GB16297-1996); For
sulfur-containing compounds refer to the standard in Table 2 of Comprehensive Emission Standard for Air
Pollutants (GB16297-1996). For dust refer to the secondary standard in Table 2 of Comprehensive Emission
Standard for Air Pollutants (GB16297-1996).
2. Environmental protection administrative license
The Company and its subsidiaries conscientiously implement the Environmental Protection Law the Environmental
Impact Assessment Law and the Regulations on the Administration of Construction Project Environmental
Protection and consciously abide by environmental protection laws and regulations industry requirements and
government regulations at all levels. For new construction renovation and expansion projects the Company and its
subsidiaries adhere to the system of project environmental assessment and "three simultaneities" fully implement
environmental protection measures well ensure environmental protection management in all aspects of project
planning design construction and operation and make full use of advanced technology and scientific and
technological means to lower and reduce environmental pollution. It carries out environmental impact assessment
simultaneously 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 environmental
impact and environmental protection measures of the project. The construction starts upon the approval of the
competent environmental protection department. During the construction of the project it carefully implements the
environmental protection requirements and builds the environmental protection facilities simultaneously. After the
completion the environmental protection acceptance of the project is organized in time to ensure that the project
87Annual Report 2023
meets the acceptance criteria and meets the requirements of environmental assessment before it is officially put into
use. During the operation period it carries out pollution prevention and control actively in strict accordance with
the environmental impact assessment documents of the project and the approval requirements of the competent
environmental protection department to ensure the normal operation of environmental protection facilities.The Company and subordinate subsidiaries Changhong Air-conditioning The sewage discharge permit was applied
on March 31 2020 and is valid until May 12 2025.
3.Industrial emission standard and specific conditions of pollutant emissions involved in production and
operation activities
Main W num
Main polluta ay ber Dischar
Comp
pollutant nt and of of Total ge
any or Total discharge
and specifi di disc Distribution of concentration Pollutants discharge discharg beyond
subsid volume
specific c sc harg discharge outlets of discharge standards enacted e the
iary certified
pollutant polluta ha e volume standard
name
type nt rg outl s
name e ets
Two outlets in Standard in Table 3 of Sichuan
Or
Workshop J05 and Emission Standard for Changhong Air
ga
Sichuan one outlet in Atmospheric Volatile Conditioning
ni
Changho Workshop J07 Organic Compounds from Co. Ltd. has
ze Not
ng Air- No.128 Sanjiang Stationary Pollution completed the
VOCs d 3 ≤25.3mg/m3 4494kg exceede
condition Avenue Sources in Sichuan pollutant
e d
ing Co. Economic Province (DB51/2377- discharge
mi
Ltd. Development 2017) that is the volatile registration of
ssi
Zone Mianyang organic compounds shall the national
on
Sichua City be ＜60 mg/m3. pollutant
n Two outlets in discharge
Chang Workshop J05 and permit
hong one outlet in management
Air- Workshop J07 information
Or
condit No.128 Sanjiang platform and
ga Secondary standard in
ioning Avenue obtained the
ni Table 2 of Comprehensive
Co. Economic registration
ze Emission Standard for Air
Ltd. Development receipt Not
Oxynitrid Oxynit d Pollutants (GB16297-
2 Zone Mianyang ≤3mg/m3 722kg according to exceede
e ride e 1996) that is the
City the d
mi concentration of nitrogen
Two outlets in requirements
ssi oxides shall be ＜240
Workshop J05 of relevant
on mg/m3
No.128 Sanjiang laws and
Avenue regulations
Economic such as
Development Measures for
Zone Mianyang the
88Annual Report 2023
City (the same Administration
outlet as of Pollutant
J05VOC). Discharge
Or Permits (trial)
ga Catalogue of
Secondary standard in
ni Classified
Table 2 of Comprehensive
Sulphu ze Management Not
Sulfocom Emission Standard for Air
r d 2 ＜4mg/m3 768kg of Pollutant exceede
pound Pollutants (GB16297-
dioxide e Discharge d
1996)that is
mi Permit of
SO2＜550mg/m3
ssi Stationary
on Pollution
Sources (2019
Two outlets in
Edition) etc.Or Workshop J05 and
There was no
ga one outlet in
Secondary standard in requirement
ni Workshop J07
Table 2 of Comprehensive for the total
ze No.128 Sanjiang Not
Particu Emission Standard for Air amount of
Dust d 4 Avenue ≤2.6mg/m3 768kg exceede
late Pollutants (GB16297-that pollutant
e Economic d
matter is Particulate matter＜ discharge of
mi Development
120mg/m3 the Company
ssi Zone Mianyang
in the pollutant
on City
discharge
registration.
4. Treatment of pollutants
Zhongshan Changhong a subsidiary company treats pollutants in accordance with relevant laws and regulations on
environmental protection and disposes of them according to disposal requirements after they reach the relevant
standards.
(1) Waste gas
Changhong Air Conditioning has established a refined waste gas treatment system and 4 sets of waste gas treatment
facilities for wave-welding waste gas and adopted the treatment process of "dry interception filter + UV photolysis
purifier" to achieve organized discharge up to the standard through the 20m-high exhaust funnel at the top of the
workshop.It has established 3 sets of waste gas treatment facilities for the welding waste gas of the two devices and adopted
the treatment process of "pulse filter cartridge dust removal equipment + UV composite photocatalysis" to achieve
organized 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 the
treatment process of "dry interception filter+ activated carbon adsorption" to achieve organized discharge up the
standard 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 process
of "spray tower + drying defogging box + UV composite photocatalysis + activated carbon adsorption" to achieve
the organized discharge up to the standard through the 18m-high exhaust funnel at the top of the workshop.
89Annual Report 2023
(2) Hazardous waste
Changhong Air Conditioning has built special storage facilities for hazardous wastes with floor made of
nonflammable epoxy mortar anti-leakage ditch and collection tank which can effectively prevent the leakage risk
of hazardous wastes and meet the current storage requirements of hazardous wastes. At the same time it regularly
entrusts all kinds of hazardous wastes to units with qualifications for hazardous waste disposal for standardized and
centralized harmless disposal.
5. Independent plan to monitor environment
The Company and its subsidiaries have established regular monitoring plan for environmental pollutants set up
special funds for pollutants monitoring and engaged third-party authoritative to regularly monitor the operation of
major pollution-production links and environmental protection treatment facilities in connection with the major
pollutants produced by the Company and its subsidiaries to make sure that the Company and its subsidiaries could
achieve 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. The
Company and its subsidiaries have determined classified warning based on the different extent and severity of
environmental impacts that may be caused by the material environmental factors defined the responsibilities for
emergency response regulated emergency handling procedures established special team to handle emergencies and
organized regular rehearsal and appraisal of relevant emergency plans so as to ensure the effectiveness of these
plans improve their capability of emergency handling and take precautions against contingent emergencies.
7. Investment in environmental governance and protection and the relevant payment of environmental
protection tax
The company's investment in environmental protection mainly includes the investment in the construction of
environmental protection facilities that is the investment in purchasing and installing fixed assets such as
environmental protection facilities and equipment as well as the operation and maintenance expenses of
environmental 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 energy
management of each production unit improves the internal energy management and energy efficiency index
assessment 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. During
the reporting period the company vigorously promoted and applied the industry's advanced energy-saving
equipment and technologies and carried out energy-saving technical transformation; carried out energy-saving
transformation for high-consumption and low-efficiency air compressors upgrading and transformation for air
compressor joint control systems energy-saving transformation for steam pipelines research and application for
infrared heating technology application research for air energy units application research for air compressor waste
heat 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
90Annual Report 2023
informatization construction improved the production and manufacturing system through internet technology
realized lean production management improved production efficiency and reduced energy waste and CO2
emissions. In addition the Company also pays attention to the use of recyclable packaging and transshipment
materials to reduce carbon emissions in the procurement process and is actively promoting the recycling of
materials such as pallets to reduce carbon emissions in the whole production process.
9. Administrative penalties for environmental issues during the reporting period
Impact on the
The company's
Violation of the production and
Name Cause Result rectification
situation operation of listed
measures
companies
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 the
principle of mandatory disclosure and voluntary disclosure combined the Company and its subsidiaries have
realized the disclosure of information relating to environmental impact assessment project acceptance pollutants
production and discharge solid waste management important environmental factors environmental objectives and
performance of construction projects.
11. Other environment related information
In order to further realize the scientific and systematic environmental protection work of the Company and its
subsidiaries the Company and its subsidiaries have established an environmental management system in accordance
with ISO14001 standards set up an environmental protection organization acquired environmental protection
resources regularly identified updated and appraised environmental factors compliance obligations environmental
risks and opportunities and regularly determined environmental objectives and management programs. Through
the implementation of management programs and continuous normal improvement the environmental performance
of the Company and its subsidiaries has been continuously improved. Through regular internal audit and
management review as well as the verification and examination of the third parties the environmental management
system of the Company and its subsidiaries has been effectively controlled and fully meets the system management
standards and relevant regulations.II. Social responsibility
The Company continues to promote win-win development with its stakeholders earnestly fulfills its social
responsibilities pays close attention to the voices of all stakeholders and actively gives back and improves and is
determined to become an enterprise that is respected by the society and loved by its employees. While achieving
sound development it pays attention to protecting the interests of its shareholders employees suppliers customers
and consumers and actively engages in public welfare undertakings thus promoting the harmonious development
of 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
91Annual Report 2023
Rules of Procedure for the General Meeting of Shareholders regulates the convening holding and voting procedures
of the general meeting of shareholders equally treats all shareholders especially small and medium shareholders
equally and ensures that all shareholders enjoy equal status and fully exercise their own rights. Under the premise
of strictly implementing the Administrative Measures for Information Disclosure of Listed Companies the company
actively 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 investor
telephone hotline e-mails and the investor relations interactive platform of the Shenzhen Stock Exchange and
discloses information to all investors in a truthful accurate complete concise and clear and easy-to-understand
manner; further the company attaches great importance to the shareholder return mechanism According to the
Return Plan for Shareholders of Changhong Meiling Co. Ltd. for the Next Three Years (2021 -2023) combined
with the Company's own operating conditions and other factors during the reporting period the Company
implemented the profit distribution plan for 2022 paid dividends in cash and gave shareholders a reasonable return
on investment. At the same time during the reporting period the Company held four General Meetings of
Shareholders and implemented a combination of on-site voting and online voting to allow investors to fully
participate and ensure shareholders' right to know participate and vote on major issues of the Company. When the
General 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 resolutions
of the General Meeting of Shareholders in time to fully protect the rights and interests of small and medium-sized
investors.In addition in order to establish a variety of shareholder return mechanisms and thank investors for their long-term
concern and support for the Company during the reporting period the Company held the "Meiling 40th Anniversary
Shareholder 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 has
established a relatively complete employment management system including labor contract system salary and
performance appraisal system welfare management system training management system employee vacation
management system etc..The company attaches importance to the vital interests of employees protects the
legitimate rights and interests of employees to the maximum extent establishes harmonious labor relations and
strives 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 condolences
and organizing diversified employee activities benchmarking personnel selection carnivals etc. and continuously
improves 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 system
documents in a timely manner unified information system tools strictly controlled every link of the procurement
business cultivated core and strategic suppliers and established a high-end supply chain cultivation plan for
component suppliers of high-end products so as to form a synergy cooperation and win-win situation between the
company and its suppliers.
92Annual Report 2023
The Company has a perfect product development process advanced R&D system and constantly develops products
with leading technology. The Company attaches great importance to product quality has strong quality control
ability reliable product performance and a refined quality management system and has passed the management
system certifications such as ISO9001 ISO14001 and ISO45001. The Company's testing center has CNAS
accreditation qualification complete test items and strong testing ability which meets the requirements of strict and
high-level testing of products. At the same time it has built one of the few RoHS and intelligent IoT laboratories in
the 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 the
sales of products; In the export market it fully recognizes the requirements of local laws and regulations strictly
certifies products and fully verifies the reliability and environmental adaptability of products to ensure the reliability
of products in the target market. Its export products have covered more than 130 countries or regions. According to
different 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 enhances
brand image; It also tracks the market performance by monitoring customer satisfaction user complaint rate and
user net recommendation value.For the protection of consumers' rights and interests the company has a relatively advanced closed-loop
management system for user service. In order to meet users' service needs it gradually improves the function
construction of official channel service platforms such as 400 service hotline brand official website WeChat official
account and Zhihuijia APP attaches importance to and strengthens the user interaction and experience of social
platforms such as Tik Tok Xiaohongshu Weibo Bilibili and Zhihu and understands and handles users' needs and
questions in time. In view of user demand processing it promotes the process visualization management and user
evaluation system management of work order processing timeline. In addition the company pays attention to
improving consumers' product guarantee service ability and has created Meiling's exclusive characteristic guarantee
service measures and upgraded and launched the services such as unconditional return within 180 days for Meiling
M fresh refrigerator because of dissatisfaction in preservation and unconditional return within 180 days for Meiling
clean refrigerator because of dissatisfaction in disinfection and sterilization so as to effectively meet users' needs
and enhance consumer satisfaction.
4. Social welfare
For many years the company has actively participated in social welfare undertakings and various social welfare
activities. The company actively carries out actions such as assisting employees with serious illnesses and
advocating for voluntary donations from employees..During the reporting period the Party Committee of the Company actively participated in the third party building
project of micro-public welfare venture capital in the Jinxiu Community Social Organization Incubation Park in
Hefei Economic Development Zone; Zhongke Meiling a subsidiary of the Company established the "Friends of
Tsinghua - Meiling Biomedical Scholarship" to promote the independent innovation and high-quality development
of the medical devices and scientific research instrument and equipment industry in China; At the same time in
combination with the needs of its own business development and social responsibility Zhongke Meiling donated
an automatic vaccination workstation worth RMB 1.15 million to the Linhu Community Health Service Center of
93Annual Report 2023
Hefei Economic and Technological Development Zone through the Hefei Red Cross Society to improve the
efficiency and safety of vaccination.III. Consolidate and expand the achievements of poverty alleviation and rural revitalization
None
94Annual Report 2023
VI. Important Events
I. 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 not
yet fulfilled by the end of reporting period
√ Applicable □ Not applicable
Commitment Implementat
Commitment Type/content Date Term
party ion
1. The acquirer shall not engage in refrigerator business or activity which Strictly
Valid for long
competes or will compete with business of Meiling Electrical Appliances or implemente
term
that which has interest conflict with Meiling Electrical Appliances. d
About committed
2. The acquirer promises to apply shareholders’ right on a legal and reasonable Strictly
Sichuan and promised in Valid for long
Commitments manner and shall not take any action to limit or affect the normal operation of implemente
Changhong order to prevent term
made in Meiling Electric. d
Electric Co. horizontal
acquisition 3. For any opportunity to engage in competing business the acquirer will 2007-6-12
Ltd.(hereinafter competition in the
report or equity advise Meiling Electric in written for engaging such business or not. If Meilingthe “Sichuan Acquisitionchange report Electrical Appliances gives no clear written reply as to whether engaging the StrictlyChanghong”) Report of Hefei Valid for long
competing business or not within 20 days after receipt of the aforesaid letter it implemente
Meiling Co. Ltd. term
shall be deemed that it will not engage in such business. The acquirer will only d
engage in non-competing business provided that Meiling Electric confirms not
to or is deemed to not engage in such non-competing business.
1. It will not engage in such business or activity that competes with or has
Commitment
interest conflict with that of Meiling Electric except for the action taken for
Commitment regarding to
sake of Meiling Electric as required by Meiling Electrical Appliances. Strictly
made during the Sichuan reducing and Valid for long
2. The Company promises to apply shareholders’ right on a legal and 2010-6-24 implemente
non-public offer Changhong preventing term
reasonable manner and shall not take any action to limit or affect the normal d
of 2010 competition with
operation of Meiling Electric
Meiling Electric
3. In case that Meiling Electric expects on the basis of its existing business to
95Annual Report 2023
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
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
Commitment sign related transaction agreement with Meiling Electric under the market
regarding to principles of “equally paid and mutual benefit” and fairly determined the
reducing and transaction price according to the market prevailing standards. Strictly
Valid for long
standardizing 2. Perform the necessary obligations to make related directors and related June 242010 implemente
term
related transaction shareholder abstain from voting according to relevant regulation and observe d
with Meiling legal procedure for approving related transaction and information disclosure
Electric obligations.
3. Promise not to hurt legal interests of Meiling Electric and other shareholders
through related transaction.Strictly
Commit to authorized Changhong Air-conditioner and Zhongshan Changhong use “Changhong” Valid for long
November 62010 implemente
trademark and relevant patents for free. term
d
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.
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
The Company January 72011
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
96Annual Report 2023
material omission and no relevant information will be disclosed during the application for listing
without prior content from Shenzhen Stock Exchange.
1. Since the property transfer didn’t involve the buildings and land currently used by Changhong Strictly
Valid for long
Air-conditioner Sichuan Changhong commits upon the completion of equity transfer to continue implemente
term
to lease such assets to Changhong Air-conditioner at market price. d
Commitment
2. After completion of this property transfer Sichuan Changhong commits to manage to prevent
made in transfer
Sichuan new related transaction with Meiling Electric. For those which can not be prevented Sichuan
of air December 102009
Changhong Changhong commits to determine the transaction price based on market accepted methods so as to Strictly
conditioning Valid for long
ensure fairness of related transaction and protection of the interest of Meiling Electric implemente
assets property term
3. Sichuan Changhong commits that it will not engage in air conditioning and refrigerator business d
or activity which competes or will compete with business of Meiling Electric or that which has
interest conflict with Meiling Electric
Sichuan 1. Based on market conditions and as allowed by laws and rules multiple measures were adopted
Changhong adequately to increase shareholding of Meiling Electric so as to demonstrate its firm confidence on
Commitments Electric Co. the PRC economy and Meiling Electric with its actual actions maintain sound development of
Strictly
of not to Ltd.and persons capital market and promote recovery of healthy market Valid for long
July 92015 implemente
reducing the acting in concert term
d
shares CHANGHONG 2. Continued to support operation and development of listed company as always and promoted the
(HK) TRADING achievement of Meiling Electric. It is committed to bringing steady and real return to investors.LIMITED
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
Commitment management of China Securities Regulatory Commission and the Shenzhen Stock Exchange.Strictly
made during the Make commitments that the Company will publicly clarify in time after knowing any information Valid for long
The Company December 122016 implemente
non-public offer on any public communications media that may cause misleading influence on the stock price term
d
in 2016 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
97Annual Report 2023
If the commitment is overdue and has not
been fulfilled the specific reasons for
Not applicable
incomplete performance and the work plan
for next step shall be explained in detail
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 the
original profit forecast
□ Applicable √ Not applicable
98Annual Report 2023
II. Non-operational fund occupation from controlling shareholders and its related party
□ Applicable √ Not applicable
None
III. 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 significant
accounting 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 policy
and 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 including
Sichuan Changhong Air-conditioner Co. Ltd Zhongshan Changhong Electric Co. Ltd. And Zhongke Meiling
Cryogenic Technology Co. Ltd. etc. Compared with the previous year during the reporting period two enterprise
is included in the consolidate scope During the reporting period two subsidiaries included in the consolidated
statement 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 10000) 140
Continuous life of auditing service for domestic accounting firm 15 years
Name of domestic CPA Wang Xiaodong Tu Xiaofeng
99Annual Report 2023
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 10000) (if
N/A
applicable)
Continuous life of auditing service for foreign accounting firm (if
N/A
applicable)
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 internal
control for the Company auditing charge for internal control amounting as 270000 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
Wheth
Implemen
er to
Amount Litigatio Litigation(arbi tation of
form
involved (Ten n(arbitra tration)trial litigation( Disclosure Disclosu
Basic situation of litigation(arbitration) estima
thousand tion)pro results and arbitration date re index
ted
yuan) gress impact )judgment
liabilit
s
ies
Zhiyijia an affiliated enterprise of the company signed a The court
sales contract with the defendant Tianjin Pengsheng ordered the
Logistics Co. Ltd. (hereinafter referred to as "Tianjin defendant
Pengsheng"). After the contract was signed Zhiyijia the Tianjin
The
plaintiff supplied the goods to Tianjin Pengsheng the Pengsheng to
judgmen (www.c
defendant as agreed but Tianjin Pengsheng the immediately
t of the ninfo.co
defendant failed to fulfill the payment obligation to pay the December
first m.cn)(2
Zhiyijia as agreed. As of November 30 2022 according plaintiff RMB Under 242022
9617.43 No instance 022-
to statistics Tianjin Pengsheng the defendant still owed 96174308.42 execution October
has 101and
Zhiyijia a payment of RMB 96174308.42. Based on and the 202023
come 2023-
this Zhiyijia the plaintiff brought a lawsuit against correspondinginto 057）
Tianjin Pengsheng the defendant to the People's Court of liquidated
effect.Mianyang High-tech Industrial Development Zone and damages for
requested the court to order Tianjin Pengsheng to overdue
immediately pay the plaintiff RMB 96174308.42 and payment and
the corresponding liquidated damages for overdue bear the
100Annual Report 2023
payment and bear the related litigation costs and related
property preservation guarantee fees. 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
The case
supply obligation according to the contract while Gome
has been
and its affiliated companies the defendant failed to
accepted
fulfill the payment obligation to Meiling Group according
and is in
to the contract. According to statistics the defendant (www.c
the
Gome and its affiliated companies owe Meiling Group ninfo.co
formal No trial result No trial October20
RMB 9841267.21 for purchase payment and RMB 1086.01 No m.cn)( 2
trial yet result yet 2023
1018820.55 for liquidated damages for overdue 023-
stage orpayment totaling RMB 10860087.76. Based on this the 058）
pre-
plaintiff Meiling Group filed a lawsuit against the
litigatio
defendant Gome and its affiliated companies in the
n
People's Court of Hefei High-tech Industry Development
mediatio
Zone. It requested the court to order the defendant Gome
n stage.to immediately pay the plaintiff Meiling Group the
purchase payment and the liquidated damages for
overdue payment totaling RMB 10860087.76.Part of
Accumulated amount of other litigation that does not
11029.97 it is a - - - - -
meet the disclosure standard of major litigation
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 the
financial report.Notes: The Company's shareholding in Zhiyijia is 50% and the products are sold through Zhiyijia's smart trading
platform. The customers channels and sales transactions corresponding to the products sold are controlled and
docked by the company itself and the external transaction object is Zhiyijia and related transactions are formed
between the Company and Zhiyijia. In terms of payment settlement the Company and Zhiyijia follow the principle
of "external customer account period is Zhiyijia's account period to the Company and external customer payment
is Zhiyijia's payment to the Company which is not allowed to be remained or transited at Zhiyijia". The amounts
involved in this case are all accounts receivable and liquidated damages for overdue payment caused by the
Company's sales through the smart trading platform of Zhiyijia but the subject of the agreement is Zhiyijia and
this lawsuit will be filed by Zhiyijia. The Company and its affiliated enterprise Zhiyijia will claim their legitimate
rights and interests according to law and actively take relevant measures to safeguard the legitimate rights and
interests of the Company Zhiyijia and the investors.
101Annual Report 2023
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 had
good 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
102Annual Report 2023
Wheth
er over
Related Proporti Availa
Type of Related Trading limit the Clearing
transaction on in ble
Seri Related related Content of related Pricing transaction approved (in approv form for
Relationship price (in 10 similar similar Date of disclosure Index of disclosure
al party transacti transaction principle amount (in 10 10 thousand ed related
thousand transacti market
on thousand Yuan) Yuan) limited transaction
Yuan) ons (%) price
or Not
(Y/N)
Juchao Website
Pressure regulator December 7
Sichuan Commo Spot （www.cninfo.com.cn）
integrated circuit 2023December 23
Changhong Controlling dity exchange
Marketing Announcement No.: 2022-0872022-1 transistors steel 34336.31 34336.31 1.80% 65000.00 No - 2022September 8
Electric Co. shareholder purchase price Bank 0882022-0892022-1002023-
plate plastic parts 2023December
Ltd. d acceptance 0442023-0452023-0472023-
etc 192023
0772023-0782023-079.
Sichuan Juchao Website
December 7
Changhong Commo Spot （www.cninfo.com.cn）
Steel plate and 2023December 23
Electric Controlling dity exchange
2 plastic particles Marketing
Announcement No.:2022-0872022-
3715.78 3715.78 0.20% 15000.00 No - 2022September 8
Holdings shareholder purchase price Bank 0882022-0892022-1002023-
etc 2023December
Group Co. d acceptance 0442023-0452023-0472023-
192023
Ltd. 0772023-0782023-079.Other
enterprise
Juchao Website
Sichuan control December 7
Commo Components Spot （www.cninfo.com.cn）
Changhong under the 2023December 23
dity plastic parts and exchange Announcement No.:2022-0872022-
3 Mold Plastic same Marketing 78955.55 78955.55 4.15% 100000.00 No - 2022September 8
purchase lining accessories price Bank 0882022-0892022-1002023-
Tech. Co. controlling 2023December
d etc. acceptance 0442023-0452023-0472023-
Ltd. shareholder 192023
0772023-0782023-079.
and ultimate
controller
103Annual Report 2023
Other
Juchao Website
enterprise December 7
Sichuan control Spot （www.cninfo.com.cn）
Commo Base plate 2023December 23
Changhong under the exchange
dity Marketing Announcement No.:2022-0872022-4 same assembly black 47006.81 47006.81 2.47% 65000.00 No - 2022September 8
Jijia Fine purchase price Bank 0882022-0892022-1002023-
controlling plate bracket etc. 2023December
Co. Ltd. d shareholder acceptance 0442023-0452023-0472023-192023
and ultimate 0772023-0782023-079.controller
Other
Juchao Website
Sichuan enterprise December 7
control Spot （www.cninfo.com.cn）
Changhong Commo Packing boxes 2023December 23
under the exchange
dity Marketing Announcement No.:2022-0872022-5 Package same foam fixed 11012.12 11012.12 0.58% 20000.00 No - 2022September 8
purchase price Bank 0882022-0892022-1002023-
Printing Co. controlling support block etc. 2023December
d
shareholder acceptance 0442023-0452023-0472023-Ltd. 192023
and ultimate 0772023-0782023-079.controller
Other
Sichuan Juchao Website
enterprise December 7
Changhong control Printed board Spot （www.cninfo.com.cn）
Commo 2023December 23
Precision under the machine insertion exchange
dity Marketing Announcement No.:2022-0872022-6 same 2510.14 2510.14 0.13% 4500.00 No - 2022September 8
Electronics purchase machine paste price Bank 0882022-0892022-1002023-
controlling 2023December
Tech. Co. d shareholder assembly acceptance 0442023-0452023-0472023-192023
Ltd. and ultimate 0772023-0782023-079.controller
Other
enterprise Juchao Website
Sichuan December 7
control Commo （www.cninfo.com.cn）
Changhong 2023December 23
under the dity
7 International Foods Marketing 3.23 3.23 0.00% 15000 No Cash
Announcement No.:2022-0872022-
- 2022September 8
same purchase price settlement 0882022-0892022-1002023-
Hotel Co. 2023December
controlling d 0442023-0452023-0472023-
Ltd. 192023
shareholder 0772023-0782023-079.and ultimate
104Annual Report 2023
controller
Other
Juchao Website
enterprise December 7
control （www.cninfo.com.cn）
081 Commo 2023December 23
under the
Electronics dity Marketing Cash Announcement No.:2022-0872022-8 same power transformer 5.30 5.30 0.00% 8000.00 No - 2022September 8
Group Co. purchase price settlement 0882022-0892022-1002023-
controlling 2023December
Ltd. d
shareholder 0442023-0452023-0472023-192023
and ultimate 0772023-0782023-079.controller
Other
Juchao Website
enterprise December 7
Guangdong control Spot （www.cninfo.com.cn）
Commo 2023December 23
Changhong under the exchange
dity Marketing Announcement No.:2022-0872022-9 same Foam and carton 753.21 753.21 0.04% 8000.00 No - 2022September 8
Electronics purchase price Bank 0882022-0892022-1002023-
controlling 2023December
Co. Ltd. d shareholder acceptance 0442023-0452023-0472023-192023
and ultimate 0772023-0782023-079.controller
Sichuan Other
Juchao Website
Changhong enterprise December 7
control （www.cninfo.com.cn）
Intelligence Commo 2023December 23
under the Outside cover
dity Marketing Cash Announcement No.:2022-0872022-10 Manufacturi same 0.05 0.05 0.00% 15000 No - 2022September 8
purchase parts price settlement 0882022-0892022-1002023-
ng controlling 2023December
d
shareholder 0442023-0452023-0472023-Technology 192023
and ultimate 0772023-0782023-079
Co. Ltd.controller
Other
Juchao Website
enterprise December 7
Sichuan control Electric （www.cninfo.com.cn）
Commo 2023December 23
Hongwei under the toothbrush body
dity Marketing Cash Announcement No.:2022-0872022-11 same 4.72 4.72 0.00% 8000.00 No - 2022September 8
Technology purchase fat weighing price settlement 0882022-0892022-1002023-
controlling 2023December
Co. Ltd d shareholder smart watches etc 0442023-0452023-0472023-192023
and ultimate 0772023-0782023-079.controller
105Annual Report 2023
Other
Juchao Website
enterprise December 7
Hefei control Spot （www.cninfo.com.cn）
Commo 2023December 23
Changhong under the exchange
dity Inverter integrated Marketing Announcement No.:2022-0872022-12 same 714.92 714.92 0.04% 8000.00 No - 2022September 8
Industrial purchase board price Bank 0882022-0892022-1002023-
controlling 2023December
Co. Ltd. d shareholder acceptance 0442023-0452023-0472023-192023
and ultimate 0772023-0782023-079.controller
Other
Juchao Website
Sichuan enterprise December 7
control Spot （www.cninfo.com.cn）
Changhong Commo 2023December 23
under the exchange
dity Marketing Announcement No.:2022-0872022-13 New Energy same Batteries 20.18 20.18 0.00% 15000 No - 2022September 8
purchase price Bank 0882022-0892022-1002023-
Technology controlling 2023December
d
shareholder acceptance 0442023-0452023-0472023-Co. Ltd. 192023
and ultimate 0772023-0782023-079.controller
Other
Juchao Website
Sichuan enterprise December 7
control （www.cninfo.com.cn）
Zhiyijia Commo 2023December 23
under the Announcement No.:2022-0872022-
14 Network dity Air conditioner Marketing same 806.22 806.22 0.04% 8000.00 No
Cash - 2022September 8
purchase LCD TV price settlement 0882022-0892022-1002023-
Technology controlling 2023December
d
Co. Ltd. shareholder
0442023-0452023-0472023-
192023
and ultimate 0772023-0782023-079.controller
Other
Juchao Website
enterprise December 7
Sichuan control （www.cninfo.com.cn）
Commo 2023December 23
Changhong under the
dity Marketing Cash Announcement No.:2022-0872022-15 same Bushing 0.18 0.18 0.00% 8000.00 No - 2022September 8
Source Co. purchase price settlement 0882022-0892022-1002023-
controlling 2023December
Ltd. d shareholder 0442023-0452023-0472023-192023
and ultimate 0772023-0782023-079.controller
106Annual Report 2023
Other
Changhong Juchao Website
enterprise December 7
International control （www.cninfo.com.cn）
Commo 2023December 23
Holdings under the
dity Announcement No.:2022-0872022-16 same Television
Marketing 5500.00 5500.00 0.29% 12000.00 No Cash - 2022September 8
(Hong purchase price settlement 0882022-0892022-1002023-
controlling 2023December
Kong) Co. d shareholder 0442023-0452023-0472023-192023
Ltd. and ultimate 0772023-0782023-079.controller
Other
Juchao Website
enterprise December 7
Sichuan control （www.cninfo.com.cn）
Commo 2023December 23
Changhong under the
dity Marketing Announcement No.:2022-0872022-17 Device same printed board 797.63 797.63 0.04% 8000.00 No
Bank - 2022September 8
purchase price acceptance 0882022-0892022-1002023-
Technology controlling 2023December
d
Co. Ltd. shareholder 0442023-0452023-0472023-192023
and ultimate 0772023-0782023-079.controller
Other
Juchao Website
Sichuan enterprise Remote controls December 7
control Spot （www.cninfo.com.cn）
Changhong Commo switching 2023December 23
under the exchange
dity transformers Marketing Announcement No.:2022-0872022-18 Electronic same 2761.52 2761.52 0.15% 4000.00 No - 2022September 8
purchase printed boards price Bank 0882022-0892022-1002023-
Products controlling 2023December
d electronic
shareholder acceptance 0442023-0452023-0472023-Co. Ltd. components etc. 192023
and ultimate 0772023-0782023-079.controller
Other
Juchao Website
enterprise December 7
Sichuan control （www.cninfo.com.cn）
Commo 2023December 23
Jiahong under the
19 dity
Announcement No.:2022-0872022-
same Catering services
Marketing 2.80 2.80 0.00% 15000 No Cash - 2022September 8
Industrial purchase price settlement 0882022-0892022-1002023-
controlling 2023December
Co. Ltd d shareholder 0442023-0452023-0472023-192023
and ultimate 0772023-0782023-079.controller
107Annual Report 2023
Other
Juchao Website
Sichuan enterprise December 7
control Commo Internet access Spot （www.cninfo.com.cn）
Ailian 2023December 23
under the dity modules exchange
Marketing Announcement No.:2022-0872022-20 Science & same 1234.06 1234.06 0.06% 5000.00 No - 2022September 8
purchase electronic price Bank 0882022-0892022-1002023-
Technology controlling 2023December
shareholder d components etc acceptance 0442023-0452023-0472023-Co. Ltd. 192023
and ultimate 0772023-0782023-079.controller
Other
enterprise
Juchao Website
control December 7
Changhong Commo Spot （www.cninfo.com.cn）
under the 2023December 23
Huayi dity Compressor，air exchangeMarketing Announcement No.:2022-0872022-21 same 56361.04 56361.04 2.96% 54000.00 No - 2022September 8
Compressor purchase compression price Bank 0882022-0892022-1002023-
controlling 2023December
Co. Ltd. d acceptance 0442023-0452023-0472023-
shareholder 192023
0772023-0782023-079.
and ultimate
controller
Other
Juchao Website
Sichuan enterprise December 7
control Spot （www.cninfo.com.cn）
Aichuang Commo 2023December 23
under the exchange
22 Science & dity Inverter integrated Marketing
Announcement No.:2022-0872022-
same 16847.00 16847.00 0.89% 20000.00 No - 2022September 8
purchase board price Bank 0882022-0892022-1002023-
Technology controlling 2023December
d
shareholder acceptance 0442023-0452023-0472023-Co. Ltd. 192023
and ultimate 0772023-0782023-079.controller
Sichuan Other Juchao Website
December 7
Service Exp. enterprise Commo （www.cninfo.com.cn）
2023December 23
Appliance control dity
23 Filter element etc Marketing
Announcement No.:2022-0872022-
0.18 0.18 0.00% 8000.00 No Cash - 2022September 8
Service under the purchase price settlement 0882022-0892022-1002023-
2023December
Chain Co. same d 0442023-0452023-0472023-
192023
Ltd. controlling 0772023-0782023-079.
108Annual Report 2023
shareholder
and ultimate
controller
Other
Juchao Website
enterprise December 7
control Spot （www.cninfo.com.cn）
Sichuan Commo Inverter integrated 2023December 23
under the exchange
Aoku dity board ， Marketing Announcement No.:2022-0872022-24 same 2758.52 2758.52 0.15% 15000 No - 2022September 8Technology purchase Electronic control price Bank 0882022-0892022-1002023-
controlling 2023December
Co. Ltd. d components
shareholder acceptance 0442023-0452023-0472023-192023
and ultimate 0772023-0782023-079.controller
Sichuan Juchao Website
December 7
Changhong （www.cninfo.com.cn）
Controlling 2023December 23
Electronics Accept Shuttle
shareholder Marketing Cash Announcement No.:2022-0872022-25 labor transportation fee 283.47 283.46 0.16% 15000 No - 2022September 8
Holding and ultimate price settlement 0882022-0892022-1002023-
service training fee 2023December
Group Co. controller 0442023-0452023-0472023-
192023
Ltd. 0772023-0782023-079.Juchao Website
December 7
Sichuan Software usage （www.cninfo.com.cn）
2023December 23
Changhong Accept fee information
26 Controlling Marketing 388.67 388.67 0.22% 10000.00 No Cash
Announcement No.:2022-0872022-
labor consultation fee - 2022September 8
Electric Co. shareholder price settlement 0882022-0892022-1002023-
service inspection and 2023December
Ltd. certification fee 0442023-0452023-0472023-192023
0772023-0782023-079.
Other
Transportation Juchao Website
Sichuan enterprise December 7
control costs storage and （www.cninfo.com.cn）
Changhong 2023December 23
under the Accept handling charges
27 Minsheng Marketing
Announcement No.:2022-0872022-
same labor 68322.47 68322.47 37.86% 82000.00 No
Cash - 2022September 8
freight and price settlement 0882022-0892022-1002023-
Logistics controlling service 2023December
miscellaneous 0442023-0452023-0472023-
Co. Ltd. shareholder 192023
and ultimate charges etc. 0772023-0782023-079.controller
109Annual Report 2023
Other
Juchao Website
Sichuan enterprise December 7
control Spot （www.cninfo.com.cn）
Changhong commission 2023December 23
under the Accept exchange
28 Mold Plastic processing fee， Marketing
Announcement No.:2022-0872022-
same labor 4094.39 4094.39 2.27% 10000 No - 2022September 8
Change the mold price Bank 0882022-0892022-1002023-
Tech. Co. controlling service 2023December
service acceptance 0442023-0452023-0472023-
Ltd. shareholder 192023
and ultimate 0772023-0782023-079.controller
Other
Sichuan Juchao Website
enterprise December 7
Service Exp. control Three packages （www.cninfo.com.cn）
2023December 23
Appliance under the Accept equipment repair
Marketing Cash Announcement No.:2022-0872022-29 same labor miscellaneous 31833.06 31833.06 17.64% 45000.00 No - 2022September 8
Service price settlement 0882022-0892022-1002023-
controlling service fees installation 2023December
Chain Co. shareholder fee etc. 0442023-0452023-0472023-192023
Ltd. and ultimate 0772023-0782023-079.controller
Other
Juchao Website
enterprise Software usage December 7
Sichuan control （www.cninfo.com.cn）
fee service 2023December 23
Hongxin under the Accept Announcement No.:2022-0872022-
30 same labor supporting fee and
Marketing 1320.82 1320.82 0.73% 10000 No Cash - 2022September 8
Software price settlement 0882022-0892022-1002023-
controlling service information 2023December
Co. Ltd. shareholder 0442023-0452023-0472023-service fee 192023
and ultimate 0772023-0782023-079.controller
Other
Juchao Website
enterprise December 7
Guangdong control （www.cninfo.com.cn）
Service support 2023December 23
Changhong under the Accept
Marketing Cash Announcement No.:2022-0872022-31 same labor fee network 111.26 111.26 0.06% 10000 No - 2022September 8
Electronics price settlement 0882022-0892022-1002023-
controlling service service fee etc. 2023December
Co. Ltd. shareholder 0442023-0452023-0472023-192023
and ultimate 0772023-0782023-079.controller
110Annual Report 2023
Other
Juchao Website
enterprise December 7
Sichuan control （www.cninfo.com.cn）
Meals property 2023December 23
Jiahong under the Accept
Marketing Cash Announcement No.:2022-0872022-32 same labor management fees 558.03 558.03 0.31% 15000 No - 2022September 8
Industrial price settlement 0882022-0892022-1002023-
controlling service etc. 2023December
Co. Ltd. shareholder 0442023-0452023-0472023-192023
and ultimate 0772023-0782023-079.controller
Other
Juchao Website
Sichuan enterprise December 7
control （www.cninfo.com.cn）
Changhong Meetings fee 2023December 23
under the Accept Announcement No.:2022-0872022-
33 International Marketing Cash same labor accommodation， 73.60 73.60 0.04% 15000 No - 2022September 8
price settlement 0882022-0892022-1002023-
Hotel Co. controlling service Travel service 2023December
shareholder 0442023-0452023-0472023-Ltd. 192023
and ultimate 0772023-0782023-079.controller
Other
Juchao Website
enterprise December 7
control （www.cninfo.com.cn）
Inspection and 2023December 23
Orion.PDP. under the Accept Announcement No.:2022-0872022-
34 Marketing same labor certification 5.01 5.01 0.00% 15000 No
Cash - 2022September 8
Co.ltd price settlement 0882022-0892022-1002023-
controlling service services 2023December
shareholder 0442023-0452023-0472023-192023
and ultimate 0772023-0782023-079.controller
Other
Juchao Website
Sichuan enterprise December 7
control （www.cninfo.com.cn）
Changhong 2023December 23
under the Accept property
35 Property Marketing 14.56 14.56 0.01% 15000 No Cash
Announcement No.:2022-0872022-
same labor - 2022September 8
management fees price settlement 0882022-0892022-1002023-
Services controlling service 2023December
0442023-0452023-0472023-
Co. Ltd. shareholder 192023
and ultimate 0772023-0782023-079.controller
36 Sichuan Other Accept Training services Marketing 0.69 0.69 0.00% 10000 No Cash - December 7 Juchao Website
enterprise labor price settlement
111Annual Report 2023
Hongwei control service 2023December 23 （www.cninfo.com.cn）
Technology under the 2022September 8 Announcement No.:2022-0872022-
same
Co. Ltd. 2023December 0882022-0892022-1002023-
controlling
shareholder 192023 0442023-0452023-0472023-
and ultimate 0772023-0782023-079.controller
Other
Juchao Website
Sichuan enterprise December 7
control （www.cninfo.com.cn）
Zhiyijia 2023December 23
under the Accept Design service fee
37 Network Marketing Cash
Announcement No.:2022-0872022-
same labor and platform 13.93 13.93 0.01% 10000 No - 2022September 8
price settlement 0882022-0892022-1002023-
Technology controlling service usage fee 2023December
shareholder 0442023-0452023-0472023-Co. Ltd. 192023
and ultimate 0772023-0782023-079.controller
Other
Juchao Website
Sichuan enterprise December 7
control （www.cninfo.com.cn）
Changhong Network 2023December 23
under the Accept
Marketing Cash Announcement No.:2022-0872022-38 Network same labor maintenance 3.05 3.05 0.00% 10000 No - 2022September 8
price settlement 0882022-0892022-1002023-
Technology controlling service services 2023December
shareholder 0442023-0452023-0472023-Co. Ltd. 192023
and ultimate 0772023-0782023-079.controller
Sichuan Other
Juchao Website
Changhong enterprise December 7
control （www.cninfo.com.cn）
Intelligent 2023December 23
under the Accept Consultation
39 Manufacturi Marketing Cash
Announcement No.:2022-0872022-
same labor 9.43 9.43 0.01% 15000 No - 2022September 8
service price settlement 0882022-0892022-1002023-
ng controlling service 2023December
0442023-0452023-0472023-
Technology shareholder 192023
and ultimate 0772023-0782023-079.Co. Ltd.controller
Sichuan Other December 7 Juchao Website
Accept
40 Changhong enterprise commission Marketing Bank labor 780.10 780.10 0.43% 10000 No - 2023December 23 （www.cninfo.com.cn）
Jijia Fine control processing fee price acceptance
service 2022September 8 Announcement No.:2022-0872022-
Co. Ltd. under the
112Annual Report 2023
same 2023December 0882022-0892022-1002023-
controlling 192023 0442023-0452023-0472023-
shareholder
0772023-0782023-079.
and ultimate
controller
Sichuan
Other
Changhong Juchao Website
enterprise December 7
Gerun control （www.cninfo.com.cn）
2023December 23
Environmen under the Accept Environmental
41 Marketing Cash
Announcement No.:2022-0872022-
same labor 32.53 32.53 0.02% 15000 No - 2022September 8
tal protection service price settlement 0882022-0892022-1002023-
controlling service 2023December
protection shareholder 0442023-0452023-0472023-192023
Technology and ultimate 0772023-0782023-079.Co. Ltd. controller
Other
enterprise
Juchao Website
Sichuan control December 7（www.cninfo.com.cn）
Changhong under the Accept 2023December 23
Announcement No.:2022-0872022-
42 Electronic same labor Labor serves Marketing 27.50 27.50 0.02% 10000 No Cash - 2022September 8
price settlement 0882022-0892022-1002023-
Products controlling service 2023December
0442023-0452023-0472023-
Co. Ltd. shareholder 192023
0772023-0782023-079.
and ultimate
controller
Other
enterprise Juchao Website
December 7
Sichuan control Technical service （www.cninfo.com.cn）
Accept 2023December 23
Aichuang under the warehouse
43 labor Marketing Cash
Announcement No.:2022-0872022-
137.13 137.13 0.08% 15000 No - 2022September 8
Technology same management price settlement 0882022-0892022-1002023-
service 2023December
Co. Ltd. controlling service 0442023-0452023-0472023-
192023
shareholder 0772023-0782023-079.and ultimate
113Annual Report 2023
controller
Other
enterprise
Juchao Website
control December 7
Sichuan （www.cninfo.com.cn）
under the Accept Inspection and 2023December 23
Ailian Announcement No.:2022-0872022-
44 same labor certification Marketing 1.08 1.08 0.00% 15000 No Cash - 2022September 8
Technology price settlement 0882022-0892022-1002023-
controlling service services 2023December
Co. Ltd. 0442023-0452023-0472023-
shareholder 192023
0772023-0782023-079.
and ultimate
controller
Other
Juchao Website
enterprise Technology December 7
control development （www.cninfo.com.cn）
Sichuan 2023December 23
under the Accept service fee
Qiruike Marketing Cash Announcement No.:2022-0872022-45 same labor instrument repair 990.12 990.12 0.55% 15000 No - 2022September 8
Technology price settlement 0882022-0892022-1002023-
controlling service fee inspection and 2023December
Co. Ltd.shareholder certification fee 0442023-0452023-0472023-192023
and ultimate etc. 0772023-0782023-079.controller
Juchao Website
December 7
Spot （www.cninfo.com.cn）
Sichuan Air conditioner 2023December 23
exchange
Changhong Controlling Sales of Kitchen and Marketing Announcement No.:2022-0872022-46 225.21 225.21 0.01% 1500.00 No - 2022September 8
Electric Co. shareholder goods bathroom small price Bank 0882022-0892022-1002023-
2023December
Ltd. appliances acceptance 0442023-0452023-0472023-
192023
0772023-0782023-079.
Sichuan Juchao Website
December 7
Changhong （www.cninfo.com.cn）
Controlling Kitchen and 2023December 23
Electronics
47 shareholder Sales of bathroom small Marketing
Announcement No.:2022-0872022-
0.60 0.60 0.00% 3000.00 No Cash - 2022September 8
Holding and ultimate goods price settlement 0882022-0892022-1002023-
appliances 2023December
Group Co. controller 0442023-0452023-0472023-
192023
Ltd. 0772023-0782023-079.
114Annual Report 2023
Other
Juchao Website
enterprise December 7
Sichuan control Air （www.cninfo.com.cn）
2023December 23
Changhong under the conditione
Sales of Announcement No.:2022-0872022-48 same Sales of goods r and 2.68 2.68 0.00% 5000.00 No
Cash - 2022September 8
Jijia Fine goods settlement 0882022-0892022-1002023-
controlling Refrigerat 2023December
Co. Ltd. shareholder or 0442023-0452023-0472023-192023
and ultimate 0772023-0782023-079.controller
Other
Juchao Website
Sichuan enterprise December 7
control （www.cninfo.com.cn）
Changhong 2023December 23
under the Plastic pressure
Sales of Marketing Cash Announcement No.:2022-0872022-49 Mold same 21.18 21.18 0.00% 5000 No - 2022September 8
goods parts price settlement 0882022-0892022-1002023-
Technology controlling 2023December
shareholder 0442023-0452023-0472023-Co. Ltd. 192023
and ultimate 0772023-0782023-079.controller
Other
Juchao Website
enterprise December 7
Yigin control （www.cninfo.com.cn）
2023December 23
Hongxing under the
Sales of Announcement No.:2022-0872022-50 same Air conditioners
Marketing 8.67 8.67 0.00% 3000.00 No Cash - 2022September 8
Electric Co. goods price settlement 0882022-0892022-1002023-
controlling 2023December
Ltd. shareholder 0442023-0452023-0472023-192023
and ultimate 0772023-0782023-079.controller
Other
Juchao Website
Sichuan enterprise December 7
control washing machine Spot （www.cninfo.com.cn）
Zhiyijia 2023December 23
under the Refrigerator exchange Announcement No.:2022-0872022-
51 Network Sales of Marketing same freezer Air 728895.73 728895.73 30.34% 800000.00 No - 2022September 8
goods price Bank 0882022-0892022-1002023-
TechNlogy controlling conditioner small 2023December
acceptance 0442023-0452023-0472023-
Co. Ltd. shareholder appliances 192023
and ultimate 0772023-0782023-079.controller
115Annual Report 2023
Other
Juchao Website
Sichuan enterprise December 7
control （www.cninfo.com.cn）
Changhong 2023December 23
under the Announcement No.:2022-0872022-
52 Minsheng Sales of Air conditioner Marketing same 79.93 79.93 0.00% 5000 No
Cash - 2022September 8
goods Refrigerator price settlement 0882022-0892022-1002023-
Logistics controlling 2023December
0442023-0452023-0472023-
Co. Ltd. shareholder 192023
and ultimate 0772023-0782023-079.controller
Other
Sichuan Juchao Website
enterprise December 7
Service Exp. control Air conditioners （www.cninfo.com.cn）
2023December 23
Appliance under the inverter integrated
53 Sales of Marketing 654.81 654.81 0.03% 5000 No Cash
Announcement No.:2022-0872022-
same - 2022September 8
Service goods boards price settlement 0882022-0892022-1002023-
controlling 2023December
Chain Co. shareholder components etc. 0442023-0452023-0472023-192023
Ltd. and ultimate 0772023-0782023-079.controller
Other
Juchao Website
enterprise December 7
Sichuan control （www.cninfo.com.cn）
2023December 23
Changhong under the
54 Sales of
Announcement No.:2022-0872022-
same Air conditioners
Marketing 6.11 6.11 0.00% 5000 No Cash - 2022September 8
Real Estate goods price settlement 0882022-0892022-1002023-
controlling 2023December
Co. Ltd. shareholder 0442023-0452023-0472023-192023
and ultimate 0772023-0782023-079.controller
Other
Juchao Website
Sichuan enterprise December 7
control （www.cninfo.com.cn）
Changhong 2023December 23
under the
Sales of Marketing Cash Announcement No.:2022-0872022-55 Property same Refrigeratior 0.46 0.46 0.00% 3000.00 No - 2022September 8
goods price settlement 0882022-0892022-1002023-
Service Co. controlling 2023December
shareholder 0442023-0452023-0472023-Ltd. 192023
and ultimate 0772023-0782023-079.controller
56 Guangdong Other Sales of small appliances Marketing 20.78 20.78 0.00% 5000 No Cash - December 7 Juchao Website
Changhong enterprise goods Air conditioner price settlement
116Annual Report 2023
Electronics control 2023December 23 （www.cninfo.com.cn）
Co. Ltd. under the 2022September 8 Announcement No.:2022-0872022-
same
2023December 0882022-0892022-1002023-
controlling
shareholder 192023 0442023-0452023-0472023-
and ultimate 0772023-0782023-079.controller
Sichuan Other
Juchao Website
Changhong enterprise December 7
control （www.cninfo.com.cn）
Intelligence 2023December 23
under the Refrigerators Announcement No.:2022-0872022-
57 Manufacturi Sales of Marketing same freezers and air- 258.76 258.76 0.01% 3000.00 No
Cash - 2022September 8
goods price settlement 0882022-0892022-1002023-
ng controlling conditioners 2023December
shareholder 0442023-0452023-0472023-Technology 192023
and ultimate 0772023-0782023-079.Co. Ltd.controller
Other
Juchao Website
enterprise December 7
control （www.cninfo.com.cn）
Sichuan 2023December 23
under the
Aoku Sales of Marketing Cash Announcement No.:2022-0872022-58 same Refrigerator 21.93 21.93 0.00% 3000.00 No - 2022September 8
Technology goods price settlement 0882022-0892022-1002023-
controlling 2023December
Co. Ltd.shareholder 0442023-0452023-0472023-192023
and ultimate 0772023-0782023-079.controller
Other
Juchao Website
enterprise December 7
control （www.cninfo.com.cn）
Sichuan 2023December 23
under the
Changhong Sales of Marketing Cash Announcement No.:2022-0872022-59 same Air conditioner 5.46 5.46 0.00% 5000 No - 2022September 8
Source Co. goods price settlement 0882022-0892022-1002023-
controlling 2023December
Ltd.shareholder 0442023-0452023-0472023-192023
and ultimate 0772023-0782023-079.controller
Guangyuan Other December 7 Juchao Website
60 Changhong enterprise Sales of Marketing Air conditioner 24.10 24.10 0.00% 5000 No
Cash - 2023December 23 （www.cninfo.com.cn）
Electronic control goods price settlement
2022September 8 Announcement No.:2022-0872022-
Technology under the
117Annual Report 2023
Co. Ltd. same 2023December 0882022-0892022-1002023-
controlling 192023 0442023-0452023-0472023-
shareholder
0772023-0782023-079.
and ultimate
controller
Other
Juchao Website
enterprise December 7
Sichuan control （www.cninfo.com.cn）
WIFI 2023December 23
Ailian under the
61 Sales of communication Marketing 0.78 0.78 0.00% 3000.00 No Cash
Announcement No.:2022-0872022-
same - 2022September 8
Technology goods price settlement 0882022-0892022-1002023-
controlling line 2023December
Co. Ltd. shareholder 0442023-0452023-0472023-192023
and ultimate 0772023-0782023-079.controller
Other
Juchao Website
enterprise December 7
Sichuan control （www.cninfo.com.cn）
Kitchen and 2023December 23
Jiahong under the
62 Sales of bathroom small Marketing
Announcement No.:2022-0872022-
same 0.84 0.84 0.00% 3000.00 No
Cash - 2022September 8
Industry goods price settlement 0882022-0892022-1002023-
controlling appliances 2023December
Co. Ltd. shareholder 0442023-0452023-0472023-192023
and ultimate 0772023-0782023-079.controller
Other
Sichuan Juchao Website
enterprise December 7
Changhong control （www.cninfo.com.cn）
2023December 23
Precision under the Kitchen and
63 Sales of Marketing
Announcement No.:2022-0872022-
same 1.08 1.08 0.00% 5000 No
Cash - 2022September 8
Electronics goods bathroom price settlement 0882022-0892022-1002023-
controlling 2023December
Tech. Co. shareholder 0442023-0452023-0472023-192023
Ltd. and ultimate 0772023-0782023-079.controller
CHANGHO Other December 7 Juchao Website
enterprise
NG(HK)TR Air conditioner 2023December 23 （www.cninfo.com.cn）
64 control Sales of Marketing 69999.52 69999.52 2.91% 150000.00 No Cash -
ADINGLIM under the goods and part price settlement 2022September 8 Announcement No.:2022-0872022-
ITED same 2023December 0882022-0892022-1002023-
controlling
118Annual Report 2023
shareholder 192023 0442023-0452023-0472023-
and ultimate 0772023-0782023-079.controller
Other
Juchao Website
CHANGHO enterprise December 7
control （www.cninfo.com.cn）
NGELECT Refrigerator 2023December 23
under the
65 RIC(AUST Sales of freezers washing Marketing
Announcement No.:2022-0872022-
same 17630.27 17630.27 0.73% 150000 No
Cash - 2022September 8
goods price settlement 0882022-0892022-1002023-
RALIA)PT controlling machine and part 2023December
shareholder 0442023-0452023-0472023-Y.LTD. 192023
and ultimate 0772023-0782023-079.controller
Other
Juchao Website
enterprise December 7
control （www.cninfo.com.cn）
2023December 23
Orion.PDP. under the
Sales of Marketing Cash Announcement No.:2022-0872022-66 same Refrigerator 4478.34 4478.34 0.19% 6500.00 No - 2022September 8
Co.ltd goods price settlement 0882022-0892022-1002023-
controlling 2023December
shareholder 0442023-0452023-0472023-192023
and ultimate 0772023-0782023-079.controller
Other
Juchao Website
enterprise December 7
control （www.cninfo.com.cn）
Changhong 2023December 23
under the
67 EuropeElect Sales of
Announcement No.:2022-0872022-
same Refrigerator
Marketing 10299.23 10299.23 0.43% 10300.00 No Cash - 2022September 8
goods price settlement 0882022-0892022-1002023-
rics.r.o controlling 2023December
shareholder 0442023-0452023-0472023-192023
and ultimate 0772023-0782023-079.controller
Other Juchao Website
Changhong enterprise December 7 （www.cninfo.com.cn）
International control Refrigerator 2023December 23
68 Holdings under the Sales of freezers Air Marketing
Announcement No.:2022-0872022-
11246.60 11246.60 0.47% 80000.00 No Cash - 2022September 8
(Hong same goods conditioner price settlement 0882022-0892022-1002023-
2023December
Kong) Co. controlling kitchen utensils 0442023-0452023-0472023-
Ltd. shareholder 192023
0772023-0782023-079.
and ultimate
119Annual Report 2023
controller
Other
Juchao Website
enterprise December 7
Sichuan control （www.cninfo.com.cn）
2023December 23
Aichuang under the
69 Sales of Marketing Cash
Announcement No.:2022-0872022-
Science & same IC 407.43 407.43 0.02% 3000.00 No - 2022September 8
goods price settlement 0882022-0892022-1002023-
Technology controlling 2023December
Co. Ltd. shareholder 0442023-0452023-0472023-192023
and ultimate 0772023-0782023-079.controller
Other
Juchao Website
Suchuan enterprise December 7
control （www.cninfo.com.cn）
Hongmofan 2023December 23
under the
Sales of Marketing Cash Announcement No.:2022-0872022-70 g Network same Refrigerator 6.06 6.06 0.00% 5000 No - 2022September 8
goods price settlement 0882022-0892022-1002023-
Service Co. controlling 2023December
shareholder 0442023-0452023-0472023-Ltd. 192023
and ultimate 0772023-0782023-079.controller
Sichuan Other
Juchao Website
Changhong enterprise December 7
control （www.cninfo.com.cn）
Jiechuang 2023December 23
under the
Sales of Marketing Cash Announcement No.:2022-0872022-71 Lithium same Refrigerator 114.78 114.78 0.00% 3000.00 No - 2022September 8
goods price settlement 0882022-0892022-1002023-
Battery controlling 2023December
shareholder 0442023-0452023-0472023-Technology 192023
and ultimate 0772023-0782023-079.Co. Ltd.controller
Other
Juchao Website
enterprise December 7
Sichuan control （www.cninfo.com.cn）
2023December 23
Ansifei under the Print board
72 Sales of Marketing
Announcement No.:2022-0872022-
same 0.01 0.01 0.00% 3000.00 No
Cash - 2022September 8
Technology goods components price settlement 0882022-0892022-1002023-
controlling 2023December
Co. Ltd. shareholder 0442023-0452023-0472023-192023
and ultimate 0772023-0782023-079.controller
120Annual Report 2023
Other
Juchao Website
enterprise December 7
Sichuan control （www.cninfo.com.cn）
2023December 23
Qiruike under the
Sales of Marketing Cash Announcement No.:2022-0872022-73 same IC 0.27 0.27 0.00% 3000.00 No - 2022September 8
Technology goods price settlement 0882022-0892022-1002023-
controlling 2023December
Co. Ltd. shareholder 0442023-0452023-0472023-192023
and ultimate 0772023-0782023-079.controller
Other
Juchao Website
Sichuan enterprise December 7
control （www.cninfo.com.cn）
Qisai 2023December 23
under the Announcement No.:2022-0872022-
74 Microelectro Sales of same Air conditioner
Marketing 4.99 4.99 0.00% 3000.00 No Cash - 2022September 8
goods price settlement 0882022-0892022-1002023-
nics Co. controlling 2023December
shareholder 0442023-0452023-0472023-Ltd. 192023
and ultimate 0772023-0782023-079.controller
Other
Juchao Website
Zhongjiu enterprise December 7
control （www.cninfo.com.cn）
Shining 2023December 23
under the
Sales of Announcement No.:2022-0872022-75 Medical same Air conditioner
Marketing 14.57 14.57 0.00% 3000.00 No Cash - 2022September 8
goods price settlement 0882022-0892022-1002023-
Technology controlling 2023December
shareholder 0442023-0452023-0472023-Co. Ltd. 192023
and ultimate 0772023-0782023-079.controller
Other
Juchao Website
Sichuan enterprise December 7
control （www.cninfo.com.cn）
Qineng 2023December 23
under the
76 Zhongzheng Sales of
Announcement No.:2022-0872022-
same Air conditioner
Marketing 9.85 9.85 0.00% 3000.00 No Cash - 2022September 8
goods price settlement 0882022-0892022-1002023-
Technology controlling 2023December
Co. Ltd. shareholder
0442023-0452023-0472023-
192023
and ultimate 0772023-0782023-079.controller
121Annual Report 2023
Sichuan Juchao Website
December 7
Changhong （www.cninfo.com.cn）
Controlling Providin 2023December 23
Electronics Installation
77 shareholder Marketing Cash
Announcement No.:2022-0872022-
g 0.67 0.67 0.01% 3000.00 No - 2022September 8
Holding and ultimate service price settlement 0882022-0892022-1002023-
services 2023December
Group Co. controller 0442023-0452023-0472023-
192023
Ltd. 0772023-0782023-079.Other
Juchao Website
enterprise December 7
Sichuan control （www.cninfo.com.cn）
2023December 23
Changhong under the Providin
Marketing Announcement No.:2022-0872022-78 Mold Plastic same g Labor service 139.00 139.00 2.35% 500 No
Cash - 2022September 8
price settlement 0882022-0892022-1002023-
Tech. Co. controlling services 2023December
Ltd. shareholder 0442023-0452023-0472023-192023
and ultimate 0772023-0782023-079.controller
Other
Juchao Website
enterprise December 7
control Spot （www.cninfo.com.cn）
Sichuan 2023December 23
under the Providin exchange
Changhong Marketing Announcement No.:2022-0872022-79 same g Labor service 12.75 12.75 0.22% 500 No - 2022September 8
Jijia Fine price Bank 0882022-0892022-1002023-
controlling services 2023December
Co. Ltd.shareholder acceptance 0442023-0452023-0472023-192023
and ultimate 0772023-0782023-079.controller
Other
Juchao Website
enterprise December 7
Sichuan control （www.cninfo.com.cn）
2023December 23
Aichuang under the Providin
80 Marketing Cash
Announcement No.:2022-0872022-
Science & same g Labor service 474.35 474.35 8.01% 3000.00 No - 2022September 8
price settlement 0882022-0892022-1002023-
Technology controlling services 2023December
Co. Ltd. shareholder 0442023-0452023-0472023-192023
and ultimate 0772023-0782023-079.controller
Sichuan Other Providin December 7 Juchao Website
81 Marketing Cash enterprise g Labor service 46.42 46.42 0.78% 3000.00 No -
Huafeng price settlement 2023December 23 （www.cninfo.com.cn）
control services
122Annual Report 2023
Technology under the 2022September 8 Announcement No.:2022-0872022-
Co. Ltd. same 2023December 0882022-0892022-1002023-
controlling
1920230442023-0452023-0472023-
shareholder
and ultimate 0772023-0782023-079.controller
Other
Juchao Website
enterprise December 7
Sichuan control （www.cninfo.com.cn）
2023December 23
Zhiyijia under the Providin
Marketing Cash Announcement No.:2022-0872022-82 Network same g Service fee 18.54 18.54 0.31% 10000 No - 2022September 8
price settlement 0882022-0892022-1002023-
Technology controlling services 2023December
Co. Ltd. shareholder 0442023-0452023-0472023-192023
and ultimate 0772023-0782023-079.controller
Juchao Website
December 7（www.cninfo.com.cn）
Sichuan 2023December 23
Providin
83 Changhong Controlling Marketing Cash
Announcement No.:2022-0872022-
g Labor service 1139.57 1139.57 19.25% 10000 No - 2022September 8
Electric Co. shareholder price settlement 0882022-0892022-1002023-
services 2023December
Ltd. 0442023-0452023-0472023-
192023
0772023-0782023-079.
Other
Juchao Website
enterprise December 7
Sichuan control （www.cninfo.com.cn）
2023December 23
Changhong under the Providin
84 Technical service Marketing Cash
Announcement No.:2022-0872022-
Device same g 12.40 12.40 0.21% 10000 No - 2022September 8
fee price settlement 0882022-0892022-1002023-
Technology controlling services 2023December
Co. Ltd. shareholder 0442023-0452023-0472023-192023
and ultimate 0772023-0782023-079.controller
Sichuan Other Installation December 7 Juchao Website
enterprise
Changhong Providin service 2023December 23 （www.cninfo.com.cn）
85 control Marketing g 26.80 26.80 0.45% 10000 No
Cash -
Network under the maintenance price settlement 2022September 8 Announcement No.:2022-0872022-
services
Technology same service 2023December 0882022-0892022-1002023-
controlling
123Annual Report 2023
Co. Ltd. shareholder 192023 0442023-0452023-0472023-
and ultimate 0772023-0782023-079.controller
Other
Juchao Website
Mianyang enterprise December 7
control （www.cninfo.com.cn）
Huafeng 2023December 23
under the Providin Announcement No.:2022-0872022-
86 Hulian same g Repair Service
Marketing 34.98 34.98 0.59% 3000.00 No Cash - 2022September 8
price settlement 0882022-0892022-1002023-
Technology controlling services 2023December
Co. Ltd. shareholder
0442023-0452023-0472023-
192023
and ultimate 0772023-0782023-079.controller
Other
Juchao Website
enterprise December 7
control （www.cninfo.com.cn）
Changhong 2023December 23
under the Providin
Huayi Marketing Cash Announcement No.:2022-0872022-87 same g Labor service 134.40 134.40 2.27% 500 No - 2022September 8
Compressor price settlement 0882022-0892022-1002023-
controlling services 2023December
Co. Ltd.shareholder 0442023-0452023-0472023-192023
and ultimate 0772023-0782023-079.controller
Other
Juchao Website
enterprise December 7
Sichuan control （www.cninfo.com.cn）
2023December 23
Changhong under the Providin
88 Marketing Cash
Announcement No.:2022-0872022-
Minsheng same g Labor service 37.90 37.90 0.64% 10000 No - 2022September 8
price settlement 0882022-0892022-1002023-
Logistics controlling services 2023December
Co. Ltd. shareholder 0442023-0452023-0472023-192023
and ultimate 0772023-0782023-079.controller
Other Juchao Website
Hefei enterprise
December 7（www.cninfo.com.cn）
control 2023December 23
Changhong Providin
89 under the Marketing
Announcement No.:2022-0872022-
g Labor service 0.00 0.00 0.00% 10000 No
Cash - 2022September 8
Industry same price settlement 0882022-0892022-1002023-
services 2023December
Co. Ltd. controlling 0442023-0452023-0472023-
shareholder 192023
0772023-0782023-079.
and ultimate
124Annual Report 2023
controller
Other
Juchao Website
enterprise
Sichuan December 7
control （www.cninfo.com.cn）
Service Exp. 2023December 23
under the Providin
Appliance Marketing Cash Announcement No.:2022-0872022-90 same g Labor service 231.55 231.55 3.91% 10000 No - 2022September 8
Service price settlement 0882022-0892022-1002023-
controlling services 2023December
Chain Co.shareholder 0442023-0452023-0472023-
Ltd. 192023
and ultimate 0772023-0782023-079.controller
Other
Juchao Website
enterprise December 7
control （www.cninfo.com.cn）
Sichuan 2023December 23
under the Providin
Aoku Marketing Cash Announcement No.:2022-0872022-91 same g Labor service 0.45 0.45 0.01% 3000.00 No - 2022September 8
Technology price settlement 0882022-0892022-1002023-
controlling services 2023December
Co. Ltd.shareholder 0442023-0452023-0472023-192023
and ultimate 0772023-0782023-079.controller
Other
Juchao Website
enterprise December 7
Sichuan control （www.cninfo.com.cn）
2023December 23
Changhong under the Providin
Marketing Cash Announcement No.:2022-0872022-92 International same g Maintenance fees 6.57 6.57 0.11% 3000.00 No - 2022September 8
price settlement 0882022-0892022-1002023-
Hotel Co. controlling services 2023December
Ltd. shareholder 0442023-0452023-0472023-192023
and ultimate 0772023-0782023-079.controller
Other
Juchao Website
Sichuan enterprise December 7
control （www.cninfo.com.cn）
Chonghong 2023December 23
under the Providin
93 Network Marketing Cash
Announcement No.:2022-0872022-
same g Labor service 12.87 12.87 0.22% 10000 No - 2022September 8
price settlement 0882022-0892022-1002023-
Technology controlling services 2023December
Co. Ltd. shareholder
0442023-0452023-0472023-
192023
and ultimate 0772023-0782023-079.controller
125Annual Report 2023
Other
enterprise
Juchao Website
Sichuan control December 7（www.cninfo.com.cn）
Changhong under the 2023December 23
provide Announcement No.:2022-0872022-
94 Electronic same Marketing Labor service 0.72 0.72 0.01% 10000 No
Cash - 2022September 8
labor price settlement 0882022-0892022-1002023-
Products controlling 2023December
0442023-0452023-0472023-
Co. Ltd. shareholder 192023
0772023-0782023-079.
and ultimate
controller
Other
Juchao Website
enterprise December 7
control （www.cninfo.com.cn）
Sichuan 2023December 23
under the Providin
Qiruike Marketing Cash Announcement No.:2022-0872022-95 same g Labor service 9.57 9.57 0.16% 3000.00 No - 2022September 8
Technology price settlement 0882022-0892022-1002023-
controlling services 2023December
Co. Ltd.shareholder 0442023-0452023-0472023-192023
and ultimate 0772023-0782023-079.controller
Other
Sichuan Juchao Website
enterprise December 7
Changhong control （www.cninfo.com.cn）
2023December 23
Precision under the Providin
Marketing Cash Announcement No.:2022-0872022-96 same g Labor service 0.43 0.43 0.01% 10000 No - 2022September 8
Electronics price settlement 0882022-0892022-1002023-
controlling services 2023December
Technology shareholder 0442023-0452023-0472023-192023
Co. Ltd and ultimate 0772023-0782023-079.controller
Other Juchao Website
Sichuan enterprise December 7 （www.cninfo.com.cn）
Qineng control 2023December 23
Providin Installation
97 Zhongzheng under the Marketing
Announcement No.:2022-0872022-
g 10.89 10.89 0.18% 3000.00 No
Cash - 2022September 8
same service price settlement 0882022-0892022-1002023-
Technology services 2023December
controlling 0442023-0452023-0472023-
Co. Ltd. shareholder 192023
0772023-0782023-079.
and ultimate
126Annual Report 2023
controller
Other
Juchao Website
enterprise December 7
Yuanxin control （www.cninfo.com.cn）
2023December 23
Finance under the Providin
Consultation Marketing Announcement No.:2022-0872022-98 same g 90.78 90.78 1.53% 10000 No
Cash - 2022September 8
Lease Co. service price settlement 0882022-0892022-1002023-
controlling services 2023December
Ltd. shareholder 0442023-0452023-0472023-192023
and ultimate 0772023-0782023-079.controller
Other
Juchao Website
enterprise December 7
Sichuan control （www.cninfo.com.cn）
2023December 23
Changhong under the Providin
99 Technical service Marketing 25.90 25.90 0.44% 3000.00 No Cash
Announcement No.:2022-0872022-
Property same g - 2022September 8
fee price settlement 0882022-0892022-1002023-
Service Co. controlling services 2023December
Ltd. shareholder 0442023-0452023-0472023-192023
and ultimate 0772023-0782023-079.controller
Other
Juchao Website
enterprise December 7
Sichuan control （www.cninfo.com.cn）
2023December 23
Changhong under the Providin Installation
Marketing Announcement No.:2022-0872022-100 same g 4.60 4.60 0.08% 10000 No
Cash - 2022September 8
Real Estate service price settlement 0882022-0892022-1002023-
controlling services 2023December
Co. Ltd. shareholder 0442023-0452023-0472023-192023
and ultimate 0772023-0782023-079.controller
Sichuan Other
Juchao Website
Changhong enterprise December 7
control （www.cninfo.com.cn）
Jiechuang Installation 2023December 23
under the Providin Announcement No.:2022-0872022-
101 Lithium Marketing same g service Labor 227.77 227.77 3.85% 3000.00 No
Cash - 2022September 8
price settlement 0882022-0892022-1002023-
Battery controlling services service 2023December
Technology shareholder
0442023-0452023-0472023-
192023
and ultimate 0772023-0782023-079.Co. Ltd.controller
127Annual Report 2023
Other
Juchao Website
enterprise December 7
Sichuan control （www.cninfo.com.cn）
2023December 23
Hongwei under the Providin Technical service
Marketing Cash Announcement No.:2022-0872022-102 same g 6.97 6.97 0.12% 10000 No - 2022September 8
TechNlogy fee price settlement 0882022-0892022-1002023-
controlling services 2023December
Co.Ltd. shareholder 0442023-0452023-0472023-192023
and ultimate 0772023-0782023-079.controller
Other
Juchao Website
enterprise December 7
control （www.cninfo.com.cn）
Guangdong 2023December 23
under the Providin
103 Changhong Marketing Cash
Announcement No.:2022-0872022-
same g Labor service 62.74 62.74 1.06% 10000 No - 2022September 8
Electronics price settlement 0882022-0892022-1002023-
controlling services 2023December
Co. Ltd.shareholder 0442023-0452023-0472023-192023
and ultimate 0772023-0782023-079.controller
Other
Juchao Website
enterprise December 7
Sichuan control （www.cninfo.com.cn）
2023December 23
Qisai under the Providin Installation
Marketing Announcement No.:2022-0872022-104 Microelectro same g 4.46 4.46 0.08% 3000.00 No
Cash - 2022September 8
service price settlement 0882022-0892022-1002023-
nics Co. controlling services 2023December
Ltd. shareholder 0442023-0452023-0472023-192023
and ultimate 0772023-0782023-079.controller
Other
Juchao Website
Sichuan enterprise December 7
control （www.cninfo.com.cn）
Changhong Water electricity 2023December 23
under the
105 Device Sales of
Announcement No.:2022-0872022-
same and compressed
Marketing 14.81 14.81 0.00% 5000 No Cash - 2022September 8
goods price settlement 0882022-0892022-1002023-
Technology controlling air 2023December
0442023-0452023-0472023-
Co. Ltd. shareholder 192023
and ultimate 0772023-0782023-079.controller
106 Hefei Other Rent to Rental apartment Marketing 15.98 15.98 0.12% 4000.00 No Cash - December 7 Juchao Website
Changhong enterprise the warehouses price settlement
128Annual Report 2023
Industrial control related 2023December 23 （www.cninfo.com.cn）
Co. Ltd. under the party 2022September 8 Announcement No.:2022-0872022-
same
2023December 0882022-0892022-1002023-
controlling
shareholder 192023 0442023-0452023-0472023-
and ultimate 0772023-0782023-079.controller
Other
Juchao Website
enterprise December 7
Sichuan control （www.cninfo.com.cn）
Rent to 2023December 23
Aichuang under the
the Warehouse for Marketing Announcement No.:2022-0872022-107 same 4.86 4.86 0.04% 3000.00 No
Cash - 2022September 8
Technology related rent price settlement 0882022-0892022-1002023-
controlling 2023December
Co. Ltd. party shareholder 0442023-0452023-0472023-192023
and ultimate 0772023-0782023-079.controller
Other
Juchao Website
enterprise December 7
Sichuan control （www.cninfo.com.cn）
Rent to 2023December 23
Ailian under the
the Warehouse for Marketing Cash Announcement No.:2022-0872022-108 Science & same 0.35 0.35 0.00% 3000.00 No - 2022September 8
related rent price settlement 0882022-0892022-1002023-
Technology controlling 2023December
party
Co. Ltd. shareholder 0442023-0452023-0472023-192023
and ultimate 0772023-0782023-079.controller
Other
Juchao Website
enterprise December 7
control （www.cninfo.com.cn）
Sichuan Rent to 2023December 23
under the
109 Aoku the Warehouse for Marketing Cash
Announcement No.:2022-0872022-
same 4.34 4.34 0.03% 3000.00 No - 2022September 8
Technology related rent price settlement 0882022-0892022-1002023-
controlling 2023December
Co. Ltd. party
shareholder 0442023-0452023-0472023-192023
and ultimate 0772023-0782023-079.controller
Sichuan Other Rent to December 7 Juchao Website
110 Hongxin enterprise the Marketing Rental apartment 0.44 0.44 0.00% 4000 No
Cash - 2023December 23 （www.cninfo.com.cn）
Software control related price settlement
2022September 8 Announcement No.:2022-0872022-
Co. Ltd. under the party
129Annual Report 2023
same 2023December 0882022-0892022-1002023-
controlling 192023 0442023-0452023-0472023-
shareholder
0772023-0782023-079.
and ultimate
controller
Other
Juchao Website
enterprise
Sichuan December 7
control （www.cninfo.com.cn）
Service Exp. Rent to 2023December 23
under the
111 Appliance the Marketing 16.24 16.24 0.12% 4000 No Cash
Announcement No.:2022-0872022-
same Rental apartment - 2022September 8
Service related price settlement 0882022-0892022-1002023-
controlling 2023December
Chain Co. party
shareholder 0442023-0452023-0472023-
Ltd. 192023
and ultimate 0772023-0782023-079.controller
Other
Juchao Website
enterprise December 7
control （www.cninfo.com.cn）
Sichuan Rent to 2023December 23
under the
112 Qiruik the Marketing Cash
Announcement No.:2022-0872022-
same Lease of factory 4.73 4.73 0.04% 3000.00 No - 2022September 8
Technology related price settlement 0882022-0892022-1002023-
controlling 2023December
Co. Ltd. party
shareholder 0442023-0452023-0472023-192023
and ultimate 0772023-0782023-079.controller
Juchao Website
December 7（www.cninfo.com.cn）
Sichuan Rent to 2023December 23
113 Changhong Controlling the Lease of factory Marketing
Announcement No.:2022-0872022-
80.70 80.70 0.60% 4000 No Cash - 2022September 8
Electric Co. shareholder related equipment price settlement 0882022-0892022-1002023-
2023December
Ltd. party 0442023-0452023-0472023-
192023
0772023-0782023-079.
Sichuan December 7 Juchao Website
Controlling Lease
Changhong 2023December 23 （www.cninfo.com.cn）
shareholder from
114 Electronics Lease of factory Marketing 0.00 0.00 0.00% 3000.00 No Cash - 2022September 8 Announcement No.:2022-0872022-
and ultimate related price settlement
Holding 2023December 0882022-0892022-1002023-
controller parties
Group Co. 192023 0442023-0452023-0472023-
130Annual Report 2023
Ltd. 0772023-0782023-079.Other
Juchao Website
enterprise December 7
control （www.cninfo.com.cn）
Sichuan Rent to 2023December 23
under the Rental apartment
115 Changhong the Marketing 462.10 462.10 3.44% 4000 No Cash
Announcement No.:2022-0872022-
same warehousesplants - 2022September 8
Jijia Fine related price settlement 0882022-0892022-1002023-
controlling equipment 2023December
Co. Ltd. party
shareholder 0442023-0452023-0472023-192023
and ultimate 0772023-0782023-079.controller
Other
Juchao Website
enterprise
Sichuan December 7
control （www.cninfo.com.cn）
Changhong Rent to 2023December 23
under the
116 Precision the Marketing Cash
Announcement No.:2022-0872022-
same Rental apartment 6.83 6.83 0.05% 4000 No - 2022September 8
Electronics related price settlement 0882022-0892022-1002023-
controlling 2023December
Tech. Co. party
shareholder 0442023-0452023-0472023-
Ltd. 192023
and ultimate 0772023-0782023-079.controller
Other
Juchao Website
enterprise December 7
Sichuan control （www.cninfo.com.cn）
Rent to 2023December 23
Changhong under the Announcement No.:2022-0872022-
117 the Rental apartment Marketing Minsheng same 25.96 25.96 0.19% 4000 No
Cash - 2022September 8
related office factory price settlement 0882022-0892022-1002023-
Logistics controlling 2023December
party
Co. Ltd. shareholder 0442023-0452023-0472023-192023
and ultimate 0772023-0782023-079.controller
Other
Juchao Website
enterprise
Serviced December 7
Sichuan control （www.cninfo.com.cn）
Rent to apartment 2023December 23
Changhong under the
the warehouse Marketing Cash Announcement No.:2022-0872022-118 Mold Plastic same 933.88 933.88 6.94% 4000 No - 2022September 8
related workshop price settlement 0882022-0892022-1002023-
Tech. Co. controlling 2023December
party equipment and
Ltd. shareholder 0442023-0452023-0472023-
living quarters 192023
and ultimate 0772023-0782023-079.controller
131Annual Report 2023
Other
Juchao Website
enterprise December 7
Sichuan control （www.cninfo.com.cn）
Rent to 2023December 23
Changhong under the
the Marketing Announcement No.:2022-0872022-119 Device same Lease of factory 214.71 214.71 1.60% 4000 No
Cash - 2022September 8
related price settlement 0882022-0892022-1002023-
Technology controlling 2023December
party
Co. Ltd. shareholder 0442023-0452023-0472023-192023
and ultimate 0772023-0782023-079.controller
Other
Juchao Website
enterprise December 7
Sichuan control （www.cninfo.com.cn）
Rent to 2023December 23
Zhiyijia under the
the Marketing Announcement No.:2022-0872022-120 Network same Rental apartment 18.83 18.83 0.14% 4000 No
Cash - 2022September 8
related price settlement 0882022-0892022-1002023-
Technology controlling 2023December
party
Co. Ltd. shareholder 0442023-0452023-0472023-192023
and ultimate 0772023-0782023-079.controller
Other
Juchao Website
enterprise December 7
Changhong control （www.cninfo.com.cn）
Rent to 2023December 23
Huayi under the
121 the Warehouse for Marketing Cash
Announcement No.:2022-0872022-
same 1.06 1.06 0.01% 500 No - 2022September 8
Compressio related rent price settlement 0882022-0892022-1002023-
controlling 2023December
n Co. Ltd. party shareholder 0442023-0452023-0472023-192023
and ultimate 0772023-0782023-079.controller
Other
Juchao Website
enterprise December 7
Chengdu control （www.cninfo.com.cn）
Leasing 2023December 23
Changhong under the
from Announcement No.:2022-0872022-122 Electronic same Leasing office
Marketing 85.70 85.70 0.64% 4000 No Cash - 2022September 8
related price settlement 0882022-0892022-1002023-
Technology controlling 2023December
party
Co. Ltd. shareholder 0442023-0452023-0472023-192023
and ultimate 0772023-0782023-079.controller
123 Guangdong Other Leasing Lease of staff Marketing 14.54 14.54 0.11% 4000 No Cash - December 7 Juchao Website
Changhong enterprise from dormitory plant price settlement
132Annual Report 2023
Electronics control related 2023December 23 （www.cninfo.com.cn）
Co. Ltd. under the party 2022September 8 Announcement No.:2022-0872022-
same
2023December 0882022-0892022-1002023-
controlling
shareholder 192023 0442023-0452023-0472023-
and ultimate 0772023-0782023-079.controller
Other
Juchao Website
enterprise December 7
control （www.cninfo.com.cn）
Hefei Leasing 2023December 23
under the
Changhong from Marketing Cash Announcement No.:2022-0872022-124 same lease of plant 217.35 217.35 1.62% 4000 No - 2022September 8
Industrial related price settlement 0882022-0892022-1002023-
controlling 2023December
Co. Ltd. party
shareholder 0442023-0452023-0472023-192023
and ultimate 0772023-0782023-079.controller
Other
Juchao Website
enterprise December 7
control （www.cninfo.com.cn）
Sichuan Leasing 2023December 23
under the
125 Jiahong from Lease of staff Marketing
Announcement No.:2022-0872022-
same 43.18 43.18 0.32% 15000 No
Cash - 2022September 8
Industrial related dormitory price settlement 0882022-0892022-1002023-
controlling 2023December
Co. Ltd. party
shareholder 0442023-0452023-0472023-192023
and ultimate 0772023-0782023-079.controller
Juchao Website
December 7（www.cninfo.com.cn）
Sichuan Leasing Lease of 2023December 23
126 Changhong Controlling from Marketing Cash
Announcement No.:2022-0872022-
laboratory and 372.13 372.13 2.77% 4000 No - 2022September 8
Electric Co. shareholder related price settlement 0882022-0892022-1002023-
workshop 2023December
Ltd. party 0442023-0452023-0472023-
192023
0772023-0782023-079.
Sichuan December 7
Controlling Leasing Juchao Website
Changhong Lease of staff 2023December 23
127 shareholder from Marketing Electronics 14.33 14.33 0.11% 15000 No
Cash - （www.cninfo.com.cn）
and ultimate related dormitory price settlement 2022September 8
Holding Announcement No.:2022-0872022-
controller party
Group Co. 2023December
133Annual Report 2023
Ltd. 192023 0882022-0892022-1002023-
0442023-0452023-0472023-
0772023-0782023-079.
Other
Juchao Website
enterprise December 7
Changhong control （www.cninfo.com.cn）
Rent to 2023December 23
Huayi under the Lease of staff
128 the Marketing
Announcement No.:2022-0872022-
same 11.58 11.58 0.09% 54000 No
Cash - 2022September 8
Compressio related dormitory price settlement 0882022-0892022-1002023-
controlling 2023December
n Co. Ltd. party shareholder 0442023-0452023-0472023-192023
and ultimate 0772023-0782023-079.controller
Sichuan Other
Juchao Website
Changhong enterprise Purchase December 7
control Spot （www.cninfo.com.cn）
Intelligent and 2023December 23
under the Information exchange
construc Marketing Announcement No.:2022-0872022-129 Manufacturi same management 210.04 210.04 0.74% 3000 No - 2022September 8
tion of price Bank 0882022-0892022-1002023-
ng controlling system project 2023December
fixed
Technology shareholder
acceptance 0442023-0452023-0472023-
assets 192023
and ultimate 0772023-0782023-079.Co. Ltd.controller
Juchao Website
December 7（www.cninfo.com.cn）
Sichuan Leasing Lease of 2023December 23
Changhong Controlling from Announcement No.:2022-0872022-130 laboratory and Marketing 42.86 42.86 0.15% 2000.00 No Cash - 2022September 8
Electric Co. shareholder related price settlement 0882022-0892022-1002023-
workshop 2023December
Ltd. party 0442023-0452023-0472023-
192023
0772023-0782023-079.
Other Juchao Website
enterprise Purchase Knowledge December 7 （www.cninfo.com.cn）
Sichuan control and management 2023December 23
131 Hongxin under the construc integration and Marketing
Announcement No.:2022-0872022-
306.14 306.14 1.08% 2000 No Cash - 2022September 8
Software same tion of functional price settlement 0882022-0892022-1002023-
2023December
Co. Ltd. controlling fixed improvement 0442023-0452023-0472023-
shareholder assets projects 192023
0772023-0782023-079.
and ultimate
134Annual Report 2023
controller
Other
Juchao Website
enterprise December 7
control （www.cninfo.com.cn）
Sichuan Purchase 2023December 23
under the Information
132 Hongxin Intangibl Marketing
Announcement No.:2022-0872022-
same 319.30 319.30 1.13% 2000 No
Cash - 2022September 8
Software management price settlement 0882022-0892022-1002023-
controlling e assets 2023December
Co. Ltd.shareholder 0442023-0452023-0472023-192023
and ultimate 0772023-0782023-079.controller
Other
Juchao Website
enterprise December 7
Sichuan control （www.cninfo.com.cn）
2023December 23
Zhiyijia under the Purchase
Marketing Cash Announcement No.:2022-0872022-133 Network same of fixed TV 4.05 4.05 0.01% 2000 No - 2022September 8
price settlement 0882022-0892022-1002023-
Technology controlling assets 2023December
Co. Ltd. shareholder 0442023-0452023-0472023-192023
and ultimate 0772023-0782023-079.controller
Juchao Website
Sichuan December 7 （www.cninfo.com.cn）
Changhong Controlling Purchase New plant 2023December 23
134 Electronics shareholder of fixed construction Marketing
Announcement No.:2022-0872022-
169.81 169.81 0.60% 15000 No Cash - 2022September 8
Holding and ultimate price settlement 0882022-0892022-1002023-
assets project 2023December
Group Co. controller 0442023-0452023-0472023-
Ltd. 192023
0772023-0782023-079.
Other
enterprise Juchao Website
Sichuan December 7
control （www.cninfo.com.cn）
Changhong Purchase 2023December 23
under the Information
135 Jiahua fixed Marketing
Announcement No.:2022-0872022-
27.58 27.58 0.10% 2000 No Cash - 2022September 8
same management price settlement 0882022-0892022-1002023-
Information assets 2023December
controlling 0442023-0452023-0472023-
Co. ltd. 192023
shareholder 0772023-0782023-079.and ultimate
135Annual Report 2023
controller
Other
Juchao Website
enterprise December 7
control （www.cninfo.com.cn）
Sichuan Purchase 2023December 23
under the Information
Qiruik Marketing Announcement No.:2022-0872022-136 same of fixed 28.80 28.80 0.10% 15000 No
Cash - 2022September 8
Technology management price settlement 0882022-0892022-1002023-
controlling assets 2023December
Co. Ltd.shareholder 0442023-0452023-0472023-192023
and ultimate 0772023-0782023-079.controller
Other
Juchao Website
enterprise December 7
control （www.cninfo.com.cn）
Yuanxin Financin 2023December 23
under the Financing
Financial Marketing Cash Announcement No.:2022-0872022-137 same g 47232.36 47232.36 82000.00 No - 2022September 8
Lease Co. business price settlement 0882022-0892022-1002023-
controlling business 2023December
Ltd.shareholder 0442023-0452023-0472023-192023
and ultimate 0772023-0782023-079.controller
Total -- -- 1273229.01 -- -- -- -- -- -- --
Detail of sales return with major amount involved Not applicable
Report the actual implementation of the daily related 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
transactions which were projected about their total amount by from Sichuan Changhong and its subsidiary by the Company for year of 2023 was 2785 million yuan at most (tax-excluded) actually 1851.6481 million yuan
types during the reporting period (if applicable) 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 16058000000 yuan and the actual amount incurred is 12398976900 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
136Annual Report 2023
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 10468 million yuan at most (tax-excluded) actually 8391.3356 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
Not applicable
market reference price (if applicable)
137Annual Report 2023
(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
Total assets
Main Registered of the Net assets of Net profit of
Name of the
Associati business of capital of the invested the invested the invested
Co-investor invested
on the invested invested enterprise enterprise enterprise
enterprise
enterprise enterprise (RMB (RMB '0000) (RMB '0000)
'0000)
Controlli
ng
Engagement
sharehold
in equity
Sichuan Changhong Electronic er and
investment
(Group) Co. Ltd. Sichuan ultimate
investment
Changhong Electric Co.Ltd. controller
management
Sichuan Shenwan Hongyuan other
asset
Changhong Equity Investment enterprise
management
Management Co. Ltd. Guangdong s
Changhong and other
Changhong Electronics Co. Ltd. controlled
Group Sichuan activities
Sichuan Qiruike Technology Co. by the
Shenwan with private
Ltd. Sichuan Changhong Power same
Hongyuan equity funds
Supply Co. Ltd. Sichuan controllin 1500 million
Strategic New (registration 51634.69 51514.91 -137.78
Changhong New Energy Technology g yuan
Industry Parent and filing
Co. Ltd. Changhong Sanjie New sharehold
Fund Partnership must be
Energy Co. Ltd. Sichuan er and
(Limited completed in
Changhong Green Environmental ultimate
Partnership) Asset
Science and Technology Co. Ltd. controller
Management
Yibin Red-star Electronics Co. Ltd. and
Association
Sichuan Changhong Digital listed
of China
Technology Co. Ltd. and companie
before the
Changhong Huayi Compressor s with
engagement
Co.Ltd. natural
in business
persons
activities).as
directors
Sichuan Hongyun Venture Equity For Sichuan General
Investment Maqnagement Co. Ltd. controllin Hongyun items:
Sichuan Changhong Electronics g Venture Capital venture 148 million 5935.54 5935.54 15.54
Holding Group Co. Ltd. Sichuan sharehold Partnership capital
Changhong Electric Co. Ltd. er and (Limited (limited to
138Annual Report 2023
ultimate partnership) unlisted
controller enterprises).
(Except for
items that are
subject to
approval
according to
law business
activities
shall be
independentl
y carried out
according to
law by virtue
of business
license.Accumulated amount of other litigation that does
not meet the disclosure standard of major No
litigation（If any）
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. and
the Company. For details please refer to the relevant announcement disclosed by the Company in the designated
information disclosure media Securities Times China Securities Journal and CNINF (www.cninfo.com.cn) on
January 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
Amount for the Period
Maximum daily The total
Opening Total deposit Ending Balance
deposit limit (In Deposit interest amount
Related party Relationship balance (In 10 amount for the (10 thousand
10 thousand rate range withdrawn in the
thousand yuan) Period (10 yuan)
yuan) Period (10
thousand yuan)
thousand yuan)
Sichuan Other enterprises
Changhong controlled by the
450000.000.42%-3.50%346499.994552002.034465753.05432748.97
Group Finance same controlling
Co. Ltd. shareholder and
139Annual Report 2023
ultimate controller
Credit extension or other financial business
Total amount ( 10 Actual amount ( 10
Related party Relationship Type of business
thousand yuan) thousand yuan)
Other enterprises
Sichuan Changhong Group controlled by the same Other financial services -
300000.0089175.08
Finance Co. Ltd. controlling shareholder note issuance
and ultimate controller
Other enterprises
Sichuan Changhong Group controlled by the same Other financial services -
300000.0074017.06
Finance Co. Ltd. controlling shareholder note discounting
and ultimate controller
Other enterprises
Sichuan Changhong Group controlled by the same Other financial services -
600000.00340.72
Finance Co. Ltd. controlling shareholder note discounting
and ultimate controller
Note 1: As of December 312023 registered capital of Changhong Finance Company is 2693938365.84 yuan. The
Company and Changhong Huayi holds 14.96% equity of Chonghong Finance Company respectively and
controlling shareholder of the Company -Sichuan Changhong Electric Co. Ltd and its controlling shareholder
Sichuan Changhong Electronics Holding Group Co. Ltd holds 35.04% equity of Changhong Finance Company
respectively.Note 2: After deliberated and approved by the 35th session of 9th BOD and 2thextraordinary shareholders general
meeting of 2020 held on 16 October 2023 and 3 November it is agreed to continue the financial services
cooperation 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 deposit
and loans within scope of operation according to the requirements of Company and its subsidiaries(Excluding
Zhongke 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 the
25th meeting of the Tenth Board of Supervisors it was agreed to extend the duration of Sichuan Hongyun New
Generation of Information Technology Venture Capital Fund Partnership (Limited Partnership) for one year (the
specific expiration date is subject to the industrial and commercial registration) (referred to as "Hongyun Fund Phase
I" for short) that is the cumulative duration of such fund after this extension is 9 years and it was agreed that the
Company and other partners signed the Amendment to the Partnership Agreement of Sichuan Hongyun New
Generation 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 and
the 25th meeting of the Tenth Board of Supervisors and it was agreed that the amount of daily related transactions
140Annual Report 2023
between the Company and its subsidiaries and Changhong Group and its subsidiaries on purchase of commodities
and raw materials in 2023 should not exceed RMB 25 million (excluding tax); It was estimated that the amount of
daily related transactions between the Company and its subsidiaries and Sichuan Changhong Electronic Component
Co. 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 Company
and 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 15.51
billion (excluding tax).
3. On October 16 2023 and November 3 2023 after review and approval by the 35th meeting of the Tenth Board
of Directors the 26th meeting of the Tenth Board of Supervisors and the Second Extraordinary General Meeting
of Shareholders in 2023 it was agreed that the Financial Service Agreement between the Company and Changhong
Finance 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 the
Company and its subsidiaries (excluding Zhongke Meiling and its subsidiaries) in Changhong Finance Company
would not exceed RMB 4.5 billion per day within the three-year validity period from the effective date of the new
agreement.
4. On April 4 2023 and December 21 2023 after review and approval at the 37th meeting of the Tenth Board of
Directors the 28th meeting of the Tenth Board of Supervisors and the Third Extraordinary General Meeting of
Shareholders in 2023 it was agreed the total amount of daily related transactions between the Company and its
subsidiaries and related parties in 2024 would not exceed RMB 18822 million (excluding tax); It was agreed that
the Company and Sichuan Changhong Group Finance Co. Ltd. would continue to carry out related transactions of
financial 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 and
the 29th meeting of the Tenth Board of Supervisors and it was agreed that the amount of daily related transactions
between the Company and its holding subsidiaries and Changhong Group and its subsidiaries on purchase of
commodities and raw materials in 2023 should not exceed RMB 75 million (excluding tax). After this increase
estimation the total amount of daily related transactions between the Company and its subsidiaries and Changhong
Group (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)
Juchao Website
Announcement on Extension and Related Transactions of Sichuan September 82023
www.cninfo.com.cn
Hongyun New Generation of Information Technology Venture Capital
Fund Partnership (Limited Partnership)（2023-046）
Resolution Notice of the 34th session of 10thBOD (2023-044)
Juchao Website
Resolution Notice of the 25th session of 10thBOS (2023-045) September 82023
www.cninfo.com.cn
Announcement on Increasing the Daily Related Party Transactions in
141Annual Report 2023
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
October 182023 November Juchao Website
Related Transactions with Sichuan Changhong Group Finance Co. Ltd.
42023 www.cninfo.com.cn
（2023-054）
Resolution Notice of Second extraordinary general meeting of 2023
(2023-065)
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) December 52023 December Juchao Website
Resolution Notice of Fourth extraordinary general meeting of 2022 22 2023 www.cninfo.com.cn
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)
Resolution Notice of the 38th session of 10thBOD (2023-077)
Resolution Notice of the 29th session of 10thBOS (2023-078) Juchao Website
December 192023
Increase the forecast announcement of daily related party transactions for www.cninfo.com.cn
year of 2023 (2023-079)
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
142Annual Report 2023
In RMB 10000
Particulars about the external guarantee of the Company and subsidiaries (Barring the guarantee for subsidiaries)
Counter
Collatera Complete
Name of the guarante Guarantee
Related Announcement Actual guarantee l (if Guarantee implemen
Company Guarantee limit Actual date of happening Guarantee type e (if for related
disclosure date limit applicabl term tation or
guaranteed applicab party
e) not
le)
-----------
Total approving external guarantee in report period (A1) 0 Total actual occurred external guarantee in report period (A2) 0
Total actual balance of external guarantee at the end of report
Total approved external guarantee at the end of report period ( A3) 0 0
period (A4)
Guarantee between the Company and the subsidiaries
Counter
Collatera Complete
Name of the guarante Guarantee
Related Announcement Actual guarantee l (if Guarantee implemen
Company Guarantee limit Actual date of happening Guarantee type e (if for related
disclosure date limit applicabl term tation or
guaranteed applicab party
e) not
le)
Joint liability
March 102022 2000.00 Yes 1 year Yes No
guaranty
Joint liability
March 282022 7000.00 Yes 1 year Yes No
Announcement No.: guaranty
2021-0912021- Joint liability
Zhongshan April 222022 18000.00 Yes 1 year Yes No
0922021-0962021-109 guaranty
Changhong Electric 140000.00 N/A
released on December Joint liability
Co. Ltd. May 62022 6000.00 Yes 1 year Yes No
72021 and December guaranty
24 2021 Joint liability
June 102022 10000.00 Yes 1 year Yes No
guaranty
Joint liability
June 252022 13000.00 Yes 1 year Yes No
guaranty
143Annual Report 2023
Joint liability
July 22022 20000.00 Yes 1 year Yes No
guaranty
Joint liability
August 192022 5000.00 Yes 1 year Yes No
guaranty
Joint liability
October 112022 15000.00 Yes 1 year No No
guaranty
Joint liability
April 72023 6000.00 Yes 1 year No No
guaranty
Joint liability
April 242023 10000.00 Yes 1 year No No
guaranty
Joint liability
June 82023 10000.00 Yes 1 year No No
guaranty
Announcement No.: Joint liability
June 272023 7000.00 Yes 1 year No No
2022-0872022-088 guaranty
2022-091 and 2022-100 July 42023 10000.00 Joint liability
150000.00 Yes 1 year No No
released on December guaranty
72022 and December July 102023 20000.00 Joint liability
Yes 1 year No No
232022 guaranty
July 282023 5000.00 Joint liability
Yes 1 year No No
guaranty
August 292023 15000.00 Joint liability
Yes 1 year No No
guaranty
November 22023 5000.00 Joint liability
Yes 1 year No No
guaranty
Announcember No.:
2023-0662023-
0672023-0702023-080130000.00-------
released on December
52023 and December
144Annual Report 2023
222023
Announcement No.: Joint liability
June 62022 3000.00 Yes 1 year Yes No
2021-0912021- guaranty
0922021-0962021-109 Joint liability Yes
July 72022 4000.00 Yes 1 year No
released on December guaranty
16000.00
7 Joint liability Yes
October 252022 2000.00 Yes 1 year No
2021 December guaranty
242021December Joint liability
December 82022 3500.00 Yes 11.2 months No No
242021 guaranty
Changhong Announcement No.:
MeilingRidian 2022-0872022-
Technology Co. 0882022-0912022-100 Joint liability
16000.00 July 102023 4000.00 Yes 1 year No No
Ltd. released on December guaranty
72022 December 23
2022
Announcement No.:
2023-0662023-
0672023-072023-080
14500.00-------
released on December
52023 December 22
2023
Announcement No.: Joint liability
2021-0912021- September 202022 2000.00 Yes 4.5 months Yes No guaranty
ZhongkeMeiling 0922021-0962021-109
26000.00
Cryogenic released on December Joint liability
Technology Co. 7 2021 December 24 November 142022 5000.00 Yes 7.2 months Yes No guaranty
Ltd. 2021
Announcember No.:
20000.00-------
2022-0872022-
145Annual Report 2023
0882022-0912022-100
released on December
7 2022 December 23
2022
Announcember No.:
2023-0662023-
0672023-0702023-80
10000.00-------
released on December
5 2023 December 22
2023
Announcember No.:
Joint liability
2020-0972020- September 242021 5000.00 Yes 1 year Yes No
guaranty
0982020-1012020-107
100000.00
released on December
Joint liability
12 2020 December December 72021 15000.00 Yes 1 year Yes No
guaranty
302020
Announcember No.:
Joint liability
2021-0912021- March 182022 8000.00 Yes 1 year Yes No
guaranty
Sichuan Changhong 0922021-0962021-109
100000.00
Air-conditioner Co. released on December
Joint liability
Ltd. 7 2021 December 24 April 182022 30000.00 Yes 1 year Yes No
guaranty
2021
Joint liability
Announcember No.: January 172023 10000.00 Yes 9 months No No
guaranty
2022-0872022-
Joint liability
0882022-0912022-100 January 172023 5000.00 Yes 1 year No No
250000.00 guaranty
released on December
Joint liability
7 2022 December 23 February 272023 16000.00 Yes 1 year No No
guaranty
2022
March 162023 30000.00 Joint liability Yes 1 year No No
146Annual Report 2023
guaranty
Joint liability
March 242023 60000.00 Yes 1 year No No
guaranty
Joint liability
April 142023 12000.00 Yes 1 year No No
guaranty
Joint liability
June 282023 3500.00 Yes 6 months Yes No
guaranty
July 52023 1500.00 Joint liability Yes 5.4 months No No
guaranty
Announcember No.:
2023-0662023-
0672023-0702023-080
262000.00-------
released on December
52023 December 22
2023
Announcember No.:
2022-0362022-
Changhong RUBA
0372022-049 released 5955.93 note1 - - - - - - -
Trade Company
on May 18 2022 June
302022
Announcember No.:
2022-0872022-
0882022-0912022-100
15000.00-------
Jiangxi Meiling released on December
Electric Appliance 7 2022 December 23
Co. Ltd. 2022
Announcember No.:
2023-0662023-15000.00-------
0672023-0702023-080
147Annual Report 2023
released on December
5 2023 December 22
2023
Announcember No.:
2022-0872022-
0882022-0912022-100
3000.00-------
released on December
7 2022 December 23
Hefei Meiling
2022
Nonferrous Metal
Announcember No.:
Products Co. Ltd.
2023-0662023-
0672023-0702023-080
3000.00-------
released on December
5 2023 December 22
2023
Announcember No.:
2021-0912021-
0922021-0962021-109 Joint liability
40000.00 April 182022 5000.00 Yes 1 year Yes No
released on December guaranty
7 2021 December 24
2021
Hefei Meiling
Announcember No.:
Group Holdings Joint liability
2022-0872022- May 112023 4500.00 Yes 1 year No No
Limited guaranty
0882022-0912022-100
60000.00
released on December
Joint liability
7 2022 December 23 July 122023 8000.00 Yes 1 year No No
guaranty
2022
Announcember No.:
25000.00-------
2023-0662023-
148Annual Report 2023
0672023-0702023-080
released on December
5 2023 December 22
2023
Announcement No.:
2021-0082021-
0092021-011 and Joint liability
35000.00 December 92021 4000.00 Yes 11 monghs Yes No
2021-034 released on guaranty
March 3 2021 and
April 29 2021
Joint liability
January 262022 3000.00 Yes 1 year Yes No
guaranty
Joint liability
March 172022 5000.00 Yes 1 year Yes No
guaranty
Announcement No.: Joint liability
Hefei Changhong August 252022 500.00 Yes 1 year Yes No
2021-0912021- guaranty
Meiling Life
0922021-096 and Joint liability
Appliances Co. 35000.00 September 82022 1000.00 Yes 1 year Yes No
2021-109 released on guaranty
Ltd.December 7 2021 and Joint liability
September 222022 5000.00 Yes 1 year Yes No
December 24 2021 guaranty
Joint liability
November 212022 5000.00 Yes 1 year No No
guaranty
Joint liability
December 82022 4500.00 Yes 10.5 months Yes No
guaranty
Announcement No.: Joint liability
February 222023 8000.00 Yes 11 months No No
2022-0872022- guaranty
0882022-091 and 35000.00 Joint liability
April 242023 2000.00 Yes 1 year No No
2022-100 released on guaranty
December 7 2022 and May 42023 5000.00 Joint liability Yes 1 year No No
149Annual Report 2023
December 23 2022 guaranty
November 32023 2000.00 Joint liability
Yes 1 year No No
guaranty
December 12023 10000.00 Joint liability
Yes 1 year No No
guaranty
December 152023 4000.00 Joint liability Yes 5.7 months No No
guaranty
Announcember No.:
2023-040，2023-041，
2023-043，2023-065
8000.00-------
released on August 18
2023 November 4
2023
Announcember No.:
2023-0662023-
0672023-0702023-080
50000.00-------
released on December
5 2023 December 22
2023
Total amount of approving guarantee for subsidiaries in report period Total amount of actual occurred guarantee for subsidiaries in 480000.00
517500.00
(B1) report period (B2)
Total amount of approved guarantee for subsidiaries at the end of Total balance of actual guarantee for subsidiaries at the end of 293500.00
1219500.00
reporting period (B3) reporting period (B4)
Guarantee of the subsidiaries for the subsidiaries
Counter
Collatera Complete
Name of the guarante Guarantee
Related Announcement Actual guarantee l (if Guarantee implemen
Company Guarantee limit Actual date of happening Guarantee type e (if for related
disclosure date limit applicabl term tation or
guaranteed applicab party
e) not
le)
150Annual Report 2023
Announcement No.:
2021-0912021-092 and
2021-0962021-109 Joint liability
5000.00 June 272022 500.00 1 year Yes No
released on December guaranty
7 2021 and December
242021
Announcement No.: Joint liability
June 202023 1000.00 1year No No
2022-0872022- guaranty
Anhui Touxing
0882022-091 and Joint liability
Technology Co. 8000.00 August 152023 400.00 1 year No No
2022-100 released on guaranty
Ltd.December 7 2022 and Joint liability
October 202023 1000.00 1 year No No
December 23 2022 guaranty
Announcember No.:
2023-0662023-
0672023-0702023-080
5000.00-------
released on December
5 2023 December 22
2023
Announcement No.: Joint liability
2022-0872022- August 252023 1000.00 1 year No No guaranty
0882022-091 and
12000.00
2022-100 released on Joint liability
Anhui Ling'an December 7 2022 and October 202023 1000.00 1 year No No guaranty
Medical Equipment December 23 2022
Co. Ltd Announcember No.:
2023-0662023-
0672023-0702023-08010000.00-------
released on December
5 2023 December 22
151Annual Report 2023
2023
Total amount of approving guarantee for subsidiaries in report period Total amount of actual occurred guarantee for subsidiaries in
15000.004900.00
(C1) report period (C2)
Total amount of approved guarantee for subsidiaries at the end of Total balance of actual guarantee for subsidiaries at the end of
35000.004400.00
reporting period (C3) reporting period (C4)
Total amount of guarantee of the Company (total of three abovementioned guarantee)
Total amount of actual occurred guarantee in report period
Total amount of approving guarantee in report period (A1+B1+C1) 532500.00 484900.00
(A2+B2+C2)
Total amount of approved guarantee at the end of report period Total balance of actual guarantee at the end of report period
1254500.00297900.00
(A3+B3+C3) (A4+B4+C4)
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) 151500.00
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) 151500.00
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 please
refer to the announcement No. 2022-037 disclosed by the company.The above-mentioned guarantee objects are the wholly-owned and holding subsidiaries of the Company and these wholly-owned and holding subsidiaries are in
normal production and operation there are no overdue loans and the guarantee risks are controllable. During the reporting period the highest level of security the
Company provided amounted to 12195 million yuan by the approval the actual amount of guarantee is 4800 million yuan. At the end of the reporting period the
practical guarantee balance amounted to 2935 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 is
RMB 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 latest
net assets.
152Annual Report 2023
Explanation on guarantee with composite way: Not applicable
153Annual Report 2023
(iii) Entrust others to cash asset management
1. Trust financing
√ Applicable □ Not applicable
Trust financing in the period
In RMB 10000
Impairment
amount for
Type Capital resources Amount for entrust Undue balance Overdue amount
overdue financial
management
Bank financing
Own idle funds 35000.00 0 0 0
products
Total 35000.00 0 0 0
Note: The above-mentioned entrusted financing amount is the total financing amount of subsidiaries of the
Company during the reporting period.Details of the single major amount or high-risk trust investment with low security poor fluidity
√ Applicable □ Not applicable
154Annual Report 2023
In RMB 10000
Amou
nt of
reserv Wheth
Whether
Anticipa e for er
Refere Actual has
Trustee ted Actual devalu approv Summary of the
Source Criteria nce collected entrust
institution Truste Product Expiry income gains/los ation ed by items and related
Amount of Start date Capital investment purpose for fixing annual gains/los finance
(or name of e type type date (if ses in of legal query index (if
funds reward rate of ses in plan in
trustee) applicab period withdr proced applicable)
return period the
le) awing ure
future
(if (Y/N)
applic
able)
The principal of this structured deposit is
Zhongshanb Principal
included in the unified operation and Juchao
ranch of -
Idle February management of funds of Guangfa Bank and Not Not Website(www.cni
China guarante May 15 Agreemen
Bank 5000.00 own 14 the income of investors' structured deposits 1.5% applicab 18.49 18.49 N Y applicab nfo.com.cn) (
Guangfa ed with 2023 t
funds 2023 depends on the performance of USD/JPY le le Announcement
Bank Co. floating
during the observation period. No.: 2023-009)
Ltd. income
Bank of Communications operates the funds
raised by structured deposit products in a
Zhongshan Principal
unified manner and manages them in Juchao
branch of -
Idle accordance with the principle of separating Not Not Website(www.cni
Bank of guarante March 10 July 10 Agreemen
Bank 5000.00 own basic deposits from derivative transactions. 3.00% applicab 50.14 50.14 N Y applicab nfo.com.cn) (
Communica ed with 2023 2023 t
funds The raised principal will be included in the le le Announcement
tions Co. floating
internal fund of Bank of Communications for No.: 2023-009)
Ltd income
unified operation and management and will
be included in the payment scope of deposit
155Annual Report 2023
reserve fund and deposit insurance. The
embedded derivative part of products will be
linked to the exchange rate interest rate
commodity and index etc.Principal
The structured deposits are included in the Juchao
-
Mianyang Idle September payment scope of deposit reserve and deposit Not Not Website(www.cni
guarante June 26 Agreemen
branch of Bank 5000.00 own 26 insurance premium in accordance with 2.80% applicab 35.00 35.00 N Y applicab nfo.com.cn) (
ed with 2023 t
SPD Bank funds 2023 deposit management and regulatory le le Announcement
floating
requirements No.: 2023-038)
income
Principal
Mianyang - This product will be invested in
Juchao
Idle Not Not Website(www.cni
Branch of guarante September October derivatives related to the exchange rate Agreemen
Bank 10000.00 own 2.90% applicab 24.17 24.17 N Y applicab nfo.com.cn) (
Chengdu ed with 252023 252023 in the international foreign exchange t
funds le le Announcement
Bank floating market. No.: 2023-049)
income
Principal
Juchao
Mianyang -
Idle This product will be invested in derivatives Not Not Website(www.cni
Branch of guarante October November Agreemen
Bank 10000.00 own related to the exchange rate in the 2.80% applicab 25.67 25.67 N Y applicab nfo.com.cn) (
Chengdu ed with 252023 272023 t
funds international foreign exchange market. le le Announcement
Bank floating
No.: 2023-049)
income
Total 35000.00 -- -- -- -- -- -- -- 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 please
refer to Zhongke Meiling's 2023 annual Report.
156Annual Report 2023
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 the
10th Board of Supervisors and the 2022 Annual General Meeting of Shareholders it was agreed that the Company
and its subsidiaries would make a single provision for bad debts for the receivables of the customer Changhong
RUBA 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 subsidiaries
Hefei Meiling Group Holding Co. Ltd. Sichuan Changhong Air Conditioning Co. Ltd. and its affiliated company
Sichuan Zhiyijia Network Technology Co. Ltd. would make a single provision for bad debts for the receivables of
Gome (Gome is a general term for the subsidiaries branches offices and agencies at all levels of Gome Retail) and
the total amount of the above-mentioned single provision for bad debts is RMB 101962546.44. Found more on
appointed 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 18
January 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 10th
Board of Supervisors and the 2022 Annual General Meeting of Shareholders the Plan on the Company's Profit
Distribution in 2022 was adopted and at the same time the independent directors of the Company issued
independent approval opinions on the plan. Considering the interests of shareholders and the long-term development
needs of the Company based on the Company's total share capital of 1029923715 shares on December 31 2022
the Company distributed a cash dividend of RMB 0.9 (including tax) to all shareholders for every 10 shares with
no bonus or conversion of reserve funds into share capital. After this distribution the remaining accumulated
undistributed profit of the parent company was RMB 971443732.63 and the remaining undistributed profit was
carried forward to the next year for distribution.On June 10 2023 the Company disclosed the Announcement on
the Implementation of the Profit Distribution Plan for 2022 and implemented the aforementioned profit distribution
plan.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 2023-0142023-030 and 2023-037) on 31 March 2023 26 April 2023 and 10 June 2023.
3. After deliberated and approved by the 31st session of 10th BOD and Annual General Meeting of 2022 it agreed
that the Company and its subsidiaries shall carry out forward foreign exchange fund trading business during the
period from 1 July 2023 to 30 June 2024. Balance of trading not exceeding US$ 1.046 billion (mainly including
157Annual Report 2023
USD AUD EUR and other foreign exchange converted to USD) and the maximum period of delivery of a single
business 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 Meeting
of Shareholders it was agreed that the Company and its holding subsidiaries should apply for a special credit line
for RMB bill pool of maximum RMB 400 million from Hefei Branch of Industrial Bank Co. Ltd. that of maximum
RMB 300 million from Hefei Branch of Ping An Bank Co. Ltd. and that of RMB 400 million from Hefei Branch
of Jiujiang Bank Co. Ltd. with a credit period of one year. The credit lines are mainly used for special business of
bill 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 stock
trading for three consecutive trading days exceeded 20%. According to the relevant regulations of Shenzhen Stock
Exchange 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) on
20 April 2023.
6 According to the resolution of the 32nd meeting of the Tenth Board of Directors and the First Extraordinary
General Meeting of Shareholders in 2023 the Proposal on Changes in Accounting Policies in 2023 was reviewed
and approved and it was agreed that the Company would make changes in accounting policies in accordance with
the relevant provisions of Interpretation No.16 of Accounting Standards for Business Enterprises of the Accounting
Department 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 General
Meeting of Shareholders in 2023 it was agreed to revise some articles of the Articles of Association according to
the needs of the Company's operation and management and the actual situation 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 of announcement (Announcement No. 2023-023 2023-027 and 2023-033) on 20
April 2023 and 11 May 2023.
8. On April 27 2023 the Company received a notice from 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 Mr. Tang Youdao increased his holdings of common shares (A shares) by 800000 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 the
form 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
158Annual Report 2023
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) on
18 May 2023.
10. On May 25 2023 the Company issued the Announcement on the Resignation of Senior Managers of the
Company and Mr. Liu Hongwei the former Executive Vice President of the Company applied to resign as the
executive 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 of
announcement (Announcement No. 2023-036) on 25 May 2023. As of the disclosure date of this report Mr. Liu
Hongwei 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 Vice
President of the Company. Due to the needs of personal family funds Mr. Huang Danian planned to reduce his
shares by no more than 89113 shares (accounting for 0.0087% of the Company's total share capital) through
centralized bidding within 6 months after 15 trading days upon the announcement date of the reduction plan with
the amount of reduction not exceeding 25% of his shares of the Company. As of December 16 2023 upon the
expiry of the period of the share reduction plan Mr. Huang Danian the Vice President did not reduce his shares in
the Company during the period of the reduction plan and the number of shares he held before and after the reduction
plan 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 and
2023-076) on 25 May 2023.
12. After the resolution passed at the 33rd meeting of the Tenth Board of Directors of the Company it was agreed
to 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 Changhong
Air Conditioning Co. Ltd. (a wholly-owned subsidiary of the Company which holds 99% equity of Hongmei
Company) and Mianyang Meiling Refrigeration Co. Ltd. (a wholly-owned subsidiary of the Company which holds
1% equity of Hongmei Company) to the Company for direct holding at an equity transfer price according to the
audited net asset value of Hongmei Company as of December 31 2022 which was RMB 22725052.60.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. 2023-040 and 2023-076) on 18
August 2023.
13. After the resolutions of the 33rd meeting of the Tenth Board of Directors the 24th meeting of the Tenth Board
of Supervisors and the Second Extraordinary General Meeting of Shareholders in 2023 it was agreed that the
Company would provide an additional credit guarantee line of no more than RMB 80 million to its subsidiary
Hefei Changhong Meiling Electrical Appliance Co. Ltd. with a guarantee period of one year.Found more on
appointed media “Securities Times” “China Securities Journal” and Juchao Website (www.cninfo.com.cn) that the
159Annual Report 2023
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 the
Tenth Board of Supervisors it was agreed to extend the duration of Sichuan Hongyun New Generation of
Information Technology Venture Capital Fund Partnership (Limited Partnership) for one year (the specific
expiration date is subject to the industrial and commercial registration) that is the cumulative duration of such fund
after this extension is 9 years and it was agreed that the Company and other partners signed the Amendment to the
Partnership Agreement of Sichuan Hongyun New Generation of Information Technology Venture Capital Fund
Partnership (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. 2023-0442023-045 and 2023-046) on 8 September 2023.
15. Ms. Pan Haiyun the Company's securities affairs representative applied to resign as the Company's securities
affairs representative due to work adjustment. After resigning as the securities affairs representative Ms. Pan Haiyun
will work in the Company's holding subsidiary.According to the Company Law the Articles of Association and
other 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 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. 2023-048) on 12 September 2023.
16 By the resolutions passed at the 35th meeting of the Tenth Board of Directors and the Second Extraordinary
General Meeting of Shareholders in 2023 it was agreed that the Company and its subsidiaries would apply for a
special 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 1
billion from Anhui Branch of Bank of Communications Co. Ltd. with a credit period of 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. 2023-055 and 2023-065) on 18 October 2023
and November 42023.
17. By the resolutions approved at the 36th meeting of the Tenth Board of Directors and the 36th meeting of the
Tenth Board of Supervisors it was agreed that the amount of bad debt provision accrued individually for direct and
indirect receivables of Gome was RMB 44358520.13 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 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. 2023-060 2023-061 and 2023-062) on 24 October
2023.
18. By the resolutions approved at the 37th meeting of the Tenth Board of Directors the 28th meeting of the Tenth
Board of Supervisors and the Third Extraordinary General Meeting of Shareholders in 2023 it was agreed that the
Company and its subsidiaries could use their own idle funds of no more than RMB 1.5 billion (which can be used
in a rolling way) to invest in bank wealth management products with high safety good liquidity low risk and
stability within one year. The authorization period is valid within one year from the date of deliberation and approval
160Annual Report 2023
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 of
announcement (Announcement No. 2023-066 2023-67 2023-071 and 2023-080) on 5 December 2023 and
December 22 2023..
19. By the resolution of the 37th meeting of the Tenth Board of Directors of the Company it was agreed that the
Company and its subsidiaries and Hefei Branch of China Zheshang Bank Co. Ltd. should carry out asset pool
business with a total amount not exceeding RMB 500 million. The term is one year from the date when the matter
is 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 Company
disclosed 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 Extraordinary
General Meeting of Shareholders in 2023 the related clauses of the Articles of Association the Rules of Procedure
of the Board of Directors and the Independent Director System were agreed to be revised in accordance with the
Administrative 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 on
Main 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 Company
disclosed in the form of announcement (Announcement No. 2023-066 2023-073 and 2023-080) on 5 December
2023 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 10th
Board of Supervisors it was agreed that Zhongshan Changhong a subsidiary of the Company would write off the
uncollectible bad debts totaling RMB 1307424.41.Found more on appointed media “Securities Times” “ChinaSecurities Journal” and Juchao Website (www.cninfo.com.cn) that the Company disclosed in the form of
announcement (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 was
agreed to cancel Hefei Meiling Marketing Co. Ltd. a wholly-owned subsidiary of the Company according to the
business 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 Zhongshan
Changhong would invest RMB 36.526 million with its own funds to carry out technical transformation on its
production line improve its manufacturing capacity reduce costs and improve efficiency and enhance product
competitiveness.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-
040) on 8 September 2023.
161Annual Report 2023
4. By the resolution approved at the 33rd meeting of the Tenth Board of Directors of the Company it was agreed
that Zhongshan Heat Pump would implement the relocation and capacity expansion project with its own funds of
RMB 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 of
announcement (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 agreed
that Changhong Air Conditioning would implement the capacity improvement and transformation project with its
own funds of RMB 32206700 thus ensuring the stable operation and development of Changhong Air Conditioning
in the future; It was agreed that Changhong Air Conditioning would carry out technical transformation with its own
capital of RMB 17135700 thus ensuring the stable operation and development of Changhong Air Conditioning in
the 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) on
8 September 2023.
6. At the 37th meeting of the Tenth Board of Directors of the Company it was agreed that Zhongke Meiling would
donate an automatic vaccination workstation with a value of RMB 1.15 million to the Linhu Community Health
Service Center of Hefei Economic and Technological Development Zone through Hefei Red Cross Society to
improve 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) on
5 December 2023.
162Annual Report 2023
VII .Changes in Shares and Particulars about Shareholders
I. Changes in Share Capital
(i) Changes in Share Capital
In Share
Before the Change Increase/Decrease in the Change (+ -) After the Change
Public
reserve
New
Proporti Bonus transfer Proporti
Amount shares Others Subtotal Amount
on shares into on
issued
share
capital
I. Restricted
71924920.70%000+496350+49635076888420.75%
shares
1. State-owned
00.00%0000000.00%
shares
2. State-owned
legal person’s 1141053 0.11% 0 0 0 0 0 1141053 0.11%
shares
3. Other domestic
47840190.47%000+496350+49635052803690.52%
shares
Including:
Domestic legal 3363539 0.33% 0 0 0 0 0 3363539 0.33%
person’s shares
Domestic natural
14204800.14%000+496350+49635019168300.19%
person’s shares
4. Foreign shares 1267420 0.12% 0 0 0 0 0 1267420 0.12%
Including:
Foreign legal 0 0.00% 0 0 0 0 0 0 0.00%
person’s shares
Foreign natural
12674200.12%0000012674200.12%
person’s shares
II. Unrestricted
102273122399.30%000-496350-496350102223487399.25%
shares
1. RMB ordinary
87580880985.04%000-496350-49635087531245984.99%
shares
2. Domestically
listed foreign 146922414 14.26% 0 0 0 0 0 146922414 14.26%
shares
3. Overseas listed 0 0.00% 0 0 0 0 0 0 0.00%
163Annual Report 2023
foreign shares
4. Others 0 0.00% 0 0 0 0 0 0 0.00%
100.00100.00
III. Total shares 1029923715 0 0 0 0 0 1029923715
%%
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 the
Company's future development prospects and recognition of the Company's long-term investment value increased
his holdings of common shares by 800000 shares through centralized bidding in the trading system of Shenzhen
Stock 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% of
the total shares of the company held by Mr. Tang Youdao namely 600000 shares were locked.
（2）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 414600 common shares held by Ms. Li Xia at the beginning of 2023
namely 310950 shares were restricted from sale and the other 25% namely 103650 shares were lifted from such
restriction.
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 share
attributable 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
Restricted
Opening
Shares shares Ending
Shareholder shares Restricted
released in increased shares Date for released
s restricte reasons
Period in restricted
d
Period
164Annual Report 2023
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
Top by 800000 shares through centralized bidding in the trading
Tang managemen system of Shenzhen Stock Exchange. According to the relevant
06000000600000
Youdao t lock-in provisions of the Company Law the Securities Law and the Rules
stock 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 600000 shares
were locked.According to the relevant provisions of the Company Law the
Securities Law and the Rules for the Administration of the Shares
Top
of the Company Held by Directors Supervisors and Senior
managemen
Li Xia 414600 0 103650 310950 Managers of Listed Companies and Their Changes At the
t lock-in
beginning of 2023 103650 shares held by Ms. Li Xia
stock
accounting for 25% of the total shares were lifted from the
restricted sale.Total 414600 600000 103650 910950 -- --
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 common Total preference shareholders
Total preference shareholders
shareholders at end with voting rights recovered at
Total shareholders at end with voting rights recovered
49871 of last month before 41938 0 end of last month before 0
of the Period at end of reporting period (if
annual report annual report disclosed (if
applicable)
disclosed applicable)
Particulars about shares held above 5% by shareholders or top 10 shares holding
Proportion Total Amount Amount of un- Information of
Nature of Changes in
Full name of Shareholders of shares shareholders of restricted shares shares pledged
shareholder report period
held at the end restricte held tagged or frozen
165Annual Report 2023
of report d shares State of Amou
period held share nt
State-owned legal
Sichuan Changhong Electric Co. Ltd. 24.12% 248457724 0 0 248457724 - -
person
Hefei Industry Investment Holding (Group) State-owned legal
4.64%478234010047823401--
Co. Ltd. person
CHANGHONG (HK) TRADING Foreign legal
2.63%270777970027077797--
LIMITED person
National Social Security Fund 101 Portfolio Domestic non-
state-owned legal 2.21% 22782736 +22782736 0 22782736 - -
person
Foreign nature
CAO SHENGCHUN 1.43% 14766086 0 0 14766086 - -
person
China Construction Bank Co. Ltd.- Domestic non-
Jiashixin Consumer Stock Securities state-owned legal 1.17% 12082100 +12082100 0 12082100 - -
Investment Fund person
Domestic nature
Du Yunzhi 1.16% 12050000 +12050000 0 12050000 - -
person
Domestic non-
ICBC－South Excellent Growth Stock
state-owned legal 1.03% 10643000 +10643000 0 10643000 - -
Securities Investment Fund
person
Industrial Bank－Southern Xingrun value Domestic non-
one-year holding period of hybrid securities state-owned legal 0.89% 9161600 +9161600 0 9161600 - -
investment fund person
China Construction Bank Co. Ltd－China
Construction Bank Co. Ltd. - Bank of Domestic non-
Communications Schroeder Consumption state-owned legal 0.75% 7763568 +7763568 0 7763568 - -
New Drive Stock Securities Investment person
Fund
Strategy investors or general legal person becomes top 10 shareholders due to rights issued (if
Not applicable
applicable)
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
Explanation on associated
concerted actors as specified in the Measures for the Administration of Information Disclosure of Shareholder
relationship among the aforesaid
Equity Changes of Listed Companies among Sichuan Changhong Electric Co. Ltd Hong Kong Changhong and
shareholders
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
Not Applicable
voting rights.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
166Annual Report 2023
unrestricted
shares held
Type Amount
at end of
Period
Sichuan Changhong Electric Co. Ltd. 248457724 RMB ordinary shares 248457724
Hefei Industry Investment Holding (Group) Co. Ltd. 47823401 RMB ordinary shares 47823401
CHANGHONG (HK) TRADING LIMITED 27077797 RMB ordinary shares 27077797
National Social Security Fund 101 Portfolio 22782736 RMB ordinary shares 22782736
Domestically listed
CAO SHENGCHUN 14766086 14766086
foreign share
China Construction Bank Co. Ltd.- Jiashixin Consumer Stock Securities Investment Fund 12082100 RMB ordinary shares 12082100
Du Yunzhi 12050000 RMB ordinary shares 12050000
ICBC－South Excellent Growth Stock Securities Investment Fund 10643000 RMB ordinary shares 10643000
Industrial Bank－Southern Xingrun value one-year holding period of hybrid securities
9161600 RMB ordinary shares 9161600
investment fund
China Construction Bank Co. Ltd－China Construction Bank Co. Ltd. - Bank of
7763568 RMB ordinary shares 7763568
Communications Schroeder Consumption New Drive Stock Securities Investment FundExpiation on associated relationship or consistent actors within the top 10 un-restrict Found more in “Particulars about shares held above 5% byshareholders and between top 10 un-restrict shareholders and top 10 shareholders shareholders or top 10 shares holding”
Explanation on top ten common
shareholders involving margin business (if Not applicable
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 33374710 shares among which
6296913 shares are held through Philip Securities (H.K.) Co. Ltd. by CHANGHONG (HK) TRADING LIMITED
Note 2: In the above table "Particulars about shares held above 5% by shareholders or top 10 shares holding" is
subject to the data on stock transfer books provided by China Securities Depository and Clearing Corporation
Limited Shenzhen Branch
Lending 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
Number of shares held by
Addition/ Number of shares lent by shareholders in general accounts and
Withdraw refinancing at the end of the credit accounts and lent by
Name of shareholder (full name) al in this period and not yet returned refinancing at the end of the period
reporting and not yet returned
period Total Proportion of Proportion of
Total quantity
quantity total share total share
167Annual Report 2023
capital capital
The National Social Security Fund 101 portfolio Addition 0 0.00% 0 0.00%
China Construction Bank Co. Ltd.- Jiashixin Consumer
Addition 0 0.00% 0 0.00%
Stock Securities Investment Fund
Du Yunzhi Addition 0 0.00% 0 0.00%
ICBC－South Excellent Growth Stock Securities Investment
Addition 0 0.00% 0 0.00%
Fund
Industrial Bank－Southern Xingrun value one-year holding
Addition 0 0.00% 0 0.00%
period of hybrid securities investment fund
China Construction Bank Co. Ltd－China Construction Bank
Co. Ltd. - Bank of Communications Schroeder Consumption Addition 0 0.00% 0 0.00%
New Drive Stock Securities Investment Fund
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)
Out 0 0.00% 0 0.00%
Emerging Industry Investment Fund (Limited Partnership)
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 Company
have 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 Legal
Dated Organization
shareholders rep./person in Main business
founded code
’ name charge of unit
168Annual Report 2023
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;
Sichuan
development and operation of property; engineering construction for house and
Changhong April 9151070020541
Liu Jiang buildings; callback and disposal of obsolete appliance and Electronic products;
Electric Co. 81993 2308D
services of Information Technology; consultancy and services of finance;
Ltd.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 1. As of December 312023 Sichuan Changhong directly holds 212994972 shares of Changhong Huayi Compressor Co. Ltd. (Stock
and jointly code: 000404)- a company listed on the main board of the Shenzhen Stock Exchange accounting for 30.60% of the equity of
of other Changhong Huayi Compressor Co. Ltd.foreign/dom 2. As of December 312023 Sichuan Changhong indirectly holds 1990518000 ordinary shares and preferred shares in total of
estic listed Changhong Jiahua Holdings Co. Ltd. (Stock code: 03991) - a company listed on the main board of Hong Kong Stock Exchange
company by accounting for 77.44% of the whole ordinary shares and preferred shares under the name of Changhong Jiahua Holdings Co. Ltd.controlling 3.As of December 31 2023 Sichuan Changhong directly holds 86258333 shares of Sichuan Changhong Minsheng Logistics Co. Ltd
shareholder (stock code:836237)- the company with shares transferring in National Equities Exchange and Quotations accounting for 70.27% of the
in reporting equity of Sichuan Changhong Minsheng Logistics Co. Ltd.period
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
169Annual Report 2023
Legal
Dated
Actual controller rep./person in Organization code Main business
founded
charge of unit
State-owned Assets Supervision &
Administration Commission of Mianyang
Municipality is entrusted by the same level
State-owned Assets Supervision &
government together performs decision-making
Administration Commission of Mianyang -- -- --
and management of state-owned asset owners
Municipality
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 Not Applicable
actual controller in reporting period
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 31st December 2023)
Mianyang State owned Assets
Sichuan Provincial
Supervision and 90% Department of Finance
10%
Administration Commission % %
Sichuan Changhong Electronics Holding Group
Co. Ltd.
23.22%
%
Sichuan Changhong Electric Co. Ltd.
100%
四川CHANGHONG (HK) TRADING省绵
LIMITED
3阳.2市4%24.12%
CHANGHONG (HK) TRADING
%四川省
LIMCIH虹欢
TAENDG HONG MEILING CO.LTD.科技绵阳市
5. Actual controller controlling the Company b有y 限means of entrust or other assets虹 m欢ana科gement
□ Applicable √ Not applicable 责任 技有限
(iv) The total number of shares pledged by c公on司trolling shareholders or the fi责rs任t m公ajority shareholder and
its persons acting in concert accounts for 80% of the shares held by them司
□ Applicable √ Not applicable
%
170
%Annual Report 2023
(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
171Annual Report 2023
VIII. Situation of the Preferred Shares
□ Applicable √ Not applicable
The Company had no preferred stock in the Period
172Annual Report 2023
IX. Corporate Bond
□ Applicable √ Not applicable
173Annual Report 2023
X. Financial Report
I. 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/2024CDAA7B0066
To Shareholders of Changhong Meiling Co. Ltd.:
I.Auditor’s opinion
We as the auditors audited the financial statements of Changhong Meiling Co. Ltd. (the “Company”) which
included the consolidated balance sheet as of 31 December 2023 the consolidated statement of income the
consolidated statement of cash flow and the consolidated statement of changes in equity of the Company for Current
Year 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 Accounting
Standards in all material aspects which reflect fairly the consolidated financial position of the Company as of 31
December 2023 and the operating results and cash flow of the Company for Current Year of 2023.II. Basis for audit opinions
We conducted this audit under the requirements of the Auditing Standards of the Certified Public Accountant of the
PRC. The section headed “Certified Public Accountant’s responsibility for audit of financial statement” in the audit
report has further clarified our responsibilities under these standards. Pursuant to the code of professional conduct
as certified public accountant in the PRC we are independent of the Company and have performed other
responsibility as required by our professional ethics. We believe that the audit evidence obtained by us is sufficient
and adequate which provides foundation for us to issue audit opinion.III.Key audit issues
Key audit matters are those matters that in our professional judgment were of most significance in our audit of the
financial statements of the current period. These matters were addressed in the context of our audit of the financial
statements as a whole and in forming our opinion thereon and we do not provide a separate opinion on these
matters. 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
174Annual Report 2023
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
Sales revenue of the Company was mainly
monthly and seasonal revenue fluctuations of major products changes in
sourced from sales of refrigerator air
major customers and changes in sales prices and gross margins;
conditioner small household appliances and
4) 1) Implement detailed test procedures check the supporting documents
kitchen and washing machines to both domestic
related to business revenue recognition and determine whether the
and overseas customers. As indicated in note
conditions for revenue recognition are met and whether the time point of
(v) 48 of the financial statement - Operating
revenue recognition is correct;
income and cost the operating income was
5) Carry out supervision and other procedures to the important inventory at
RMB24247678970.56in 2023. Since the
end of the period well-known the progress of the contracts and follow up
truthfulness and completeness of revenue
the abnormal situations found in inspection;
recognition has material impact on operating
6) Conduct inquiry through issue of letters and carry out additional audit
results we attached great importance to
procedures for the items for which reply was abnormal;
recognition of sales revenue.
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 1) Understand the key control of capitalization of development
and development of non-patent technology in expenditures implement internal control audit procedures understand the
2023 was RMB147821273.96 which was scope and accounting methods of development expenditures understand and
capitalized and accounted for as development make research and development on related control systems and processes
expense in the consolidated financial statement. and test the effectiveness of relevant internal control design and operation;
Development expense could only be capitalized 2) Implementation: compare the developed projects in intangible assets
upon satisfaction of all the capitalization with machinery models for external sales and re-verify the truthfulness of
conditions set out in note (iii) 21 to the capitalization of completely developed projects
financial statement. Since to confirm whether 3) Dual purpose testing: inspect the project reports and inspection and
all the capitalization conditions are met requires acceptance reports formed during the research and development and
the management to make significant judgment commercialization of developed products and judge the sufficiency of basis
and estimate we deem this matter important in for accounting of development expense
the context of our audit.IV. Other information
The management of Changhong Meiling Co. Ltd. (the “Management”) is responsible for other information
which includes the information covered in the Company’s 2022 annual report excluding the financial statement
and our audit report.
175Annual Report 2023
The audit opinion issued by us for the financial statement has not covered other information for which we do not
issue any form of assurance opinions.Considering our audit on financial statements we are liable to read other information during which we shall
consider whether other information differs materially from the financial statements or that we understand during
our 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 other
information. In t his regards we have nothing to report.V. Responsibilities of management and those charged with governance for the financial statements
The management is responsible for the preparation of the financial statements in accordance with the Accounting
Standards for Enterprise to secure a fair presentation and for the design establishment and maintenance of the
internal 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 continue
as a going concern disclosing matters related to going concern and using the going concern assumption unless the
management either intends to liquidate the Company or to cease operations or has no realistic alternative but to do
so.Those charged with governance are responsible for overseeing the Company’s financial reporting process.VI. Responsibilities of the auditor for the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
material 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 with
the CAS will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and
are considered material if individually or in the aggregate they could reasonably be expected to influence the
economic 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 professional
skepticism 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 and
appropriate to provide a basis for audit opinion. The risk of not detecting a material misstatement resulting from
fraud 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 are
appropriate in the circumstances.
(3) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and
related disclosures made by the management.
(4) Conclude on the appropriateness of the management’s use of the going concern assumption and based on the
audit evidence obtained whether a material uncertainty exists related to events or conditions that may cast
significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty
176Annual Report 2023
exists we are required by the CAS to draw users’ attention in audit report to the related disclosures in the financial
statements or if such disclosures are inadequate to modify audit opinion. Our conclusions are based on the
information obtained up to the date of audit report. However future events or conditions may cause the Company
to cease to continue as a going concern.
(5) Evaluate the overall presentation structure and content of the financial statements and whether the financial
statements 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 business
activities within the Company to express audit opinion on the financial statements. We are responsible for the
direction 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 timing
of the audit and significant audit findings including any significant deficiencies in internal control that we identify
during our audit.We also provide those charged with governance with a statement that we have complied with relevant ethical
requirements regarding independence and communicate with them all relationships and other matters that may
reasonably 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 most
significance in the audit of the financial statements of the current period and are therefore the key audit matters. We
describe these matters in the auditor’s report unless law or regulation precludes public disclosure about the matter
or when in extremely rare circumstances we determine that a matter should not be communicated in the auditor’s
report because of the adverse consequences of doing so would reasonably be expected to outweigh the public interest
benefits of such communication.Shine Wing Certified Public Accountants Chinese CPA: Wang Xiaodong
(LLP) (Engagement partner)
Chinese CPA: Tu Xiaofeng
Beijing China 28 March 2024
177Annual Report 2023
II. Financial statements
Units in Notes of Financial Statements is RMB
1. Consolidated Balance Sheet
Prepared by CHANGHONG MEILING CO. LTD. December 31 2023
In RMB
Items December 312023 January 12023
Current assets:
Monetary funds 8840685525.71 6839421779.13
Settlement provisions
Capital lent
Trading financial assets 39236447.63 57660588.67
Derivative financial assets
Note receivable 267174.50
Account receivable 1633706889.06 1306871945.85
Receivable financing 1641858740.34 1446358719.88
Accounts paid in advance 45738805.90 45859491.55
Insurance receivable
Reinsurance receivables
Contract reserve of reinsurance
receivable
Other account receivable 82953808.97 88354803.24
Including: Interest receivable
Dividend receivable
Buying back the sale of financial assets
Inventories 2022738412.97 1710306933.71
Contractual assets 13261690.62 3530922.13
Assets held for sale
Non-current asset due within one year 122294027.78 170167638.89
Other current assets 225419883.07 120589431.85
Total current assets 14668161406.55 11789122254.90
Non-current assets:
Loans and payments on behalf
Debt investment 420537485.54 121543750.00
Other debt investment
Long-term account receivable
Long-term equity investment 112745811.75 100384428.50
Investment in other equity instrument
Other non-current financial assets 674139515.48 628549448.31
Investment real estate 50920487.71 52898060.89
Fixed assets 2136912034.28 2229553866.96
178Annual Report 2023
Construction in progress 69920839.20 66522492.77
Productive biological asset
Oil and gas asset
Right-of-use assets 49993400.61 36646135.10
Intangible assets 886455434.73 900568008.21
Expense on Research and Development 97177535.34 102148390.57
Goodwill
Long-term expenses to be apportioned 35698465.62 14900600.59
Deferred income tax asset 162340495.03 161565695.30
Other non-current asset 26601614.35 893238.57
Total non-current asset 4723443119.64 4416174115.77
Total assets 19391604526.19 16205296370.67
Current liabilities:
Short-term loans 1134102419.03 674143916.67
Loan from central bank
Capital borrowed
Trading financial liability 32229012.86 41961524.78
Derivative financial liability
Note payable 5904387089.98 4964374512.60
Account payable 3882303908.89 2917997138.00
Accounts received in advance 55949.90
Contractual liability 405698756.02 358755397.77
Selling financial asset of repurchase
Absorbing deposit and interbank deposit
Security trading of agency
Security sales of agency
Wage payable 443612216.56 348154915.13
Taxes payable 91917751.71 80287878.62
Other account payable 884714721.30 828207568.21
Including: Interest payable
Dividend payable 5384407.44 4978994.16
Commission charge and commission
payable
Reinsurance payable
Liability held for sale
Non-current liabilities due within one
48822798.4730287099.08
year
Other current liabilities 19172541.50 22605269.51
Total current liabilities 12847017166.22 10266775220.37
Non-current liabilities:
Insurance contract reserve
Long-term loans 108000000.00 148000000.00
Bonds payable
Including: Preferred stock
179Annual Report 2023
Perpetual capital securities
Lease liability 43488292.70 28164287.97
Long-term account payable 800347.84 1145286.48
Long-term wages payable 11417181.82 10790859.64
Accrual liability 32054790.39 32685631.78
Deferred income 132977494.33 161013911.91
Deferred income tax liabilities 21814466.43 17509503.08
Other non-current liabilities
Total non-current liabilities 350552573.51 399309480.86
Total liabilities 13197569739.73 10666084701.23
Owner’s equity:
Share capital 1029923715.00 1029923715.00
Other equity instrument
Including: Preferred stock
Perpetual capital securities
Capital public reserve 2805503457.77 2806493904.30
Less: Inventory shares
Other comprehensive income -20704362.05 -20881462.63
Reasonable reserve 11246811.91 2467205.78
Surplus public reserve 477053194.82 441218691.48
Provision of general risk
Retained profit 1521759836.64 909249365.79
Total owner’ s equity attributable to
5824782654.095168471419.72
parent company
Minority interests 369252132.37 370740249.72
Total owner’ s equity 6194034786.46 5539211669.44
Total liabilities and owner’ s equity 19391604526.19 16205296370.67
Legal Representative: Wu Dinggang
Person in charge of accounting works: Pang Haitao
Person in charge of accounting institute: Yang Jun
2. Balance Sheet of Parent Company
In RMB
Items December 312023 January 12023
Current assets:
Monetary funds 4809758761.19 3104218400.02
Trading financial assets 18729757.94 21847922.36
Derivative financial assets
Note receivable 38674.50
Account receivable 1451795533.72 1145561769.05
Receivable financing 1497014392.88 1433254352.52
Accounts paid in advance 57223852.86 66583414.71
180Annual Report 2023
Other account receivable 61841221.91 29903408.82
Including: Interest receivable
Dividend receivable
Inventories 563055688.46 463576760.77
Contractual assets 37408.05 46970.75
Assets held for sale
Non-current assets maturing within one
122294027.78170167638.89
year
Other current assets 117873746.80 165510.80
Total current assets 8699663066.09 6435326148.69
Non-current assets:
Debt investment 185038444.44 121543750.00
Other debt investment
Long-term receivables
Long-term equity investments 1857475810.90 1856359424.33
Investment in other equity instrument
Other non-current financial assets 639796405.98 608527275.52
Investment real estate 3335032.47 3543885.11
Fixed assets 1129605191.26 1127344454.50
Construction in progress 23067134.99 51057550.03
Productive biological assets
Oil and natural gas assets
Right-of-use assets 14847119.40 16739912.26
Intangible assets 450919869.65 467075020.10
Research and development costs 59134989.07 60386906.45
Goodwill
Long-term deferred expenses 18688725.10 11686542.49
Deferred income tax assets 112630572.62 127720739.83
Other non-current assets 638649.57 638649.57
Total non-current assets 4495177945.45 4452624110.19
Total assets 13194841011.54 10887950258.88
Current liabilities:
Short-term borrowings 1128097377.36 618091666.67
Trading financial liability 13310995.04 13537472.81
Derivative financial liability
Notes payable 2697168522.01 2230728460.34
Account payable 2296410046.78 1531945762.15
Accounts received in advance
Contractual liability 107529353.67 121216205.12
Wage payable 159773962.41 64869503.19
Taxes payable 25137168.64 20168907.95
Other accounts payable 951772428.91 708015820.72
Including: Interest payable
Dividend payable 4784407.44 4378994.16
181Annual Report 2023
Liability held for sale
Non-current liabilities due within one
42339541.1222238340.38
year
Other current liabilities 4875594.29 5978477.02
Total current liabilities 7426414990.23 5336790616.35
Non-current liabilities:
Long-term loans 108000000.00 148000000.00
Bonds payable
Including: Preferred stock
Perpetual capital securities
Lease liability 14511484.16 15861027.13
Long-term account payable
Long term employee compensation
6554481.487184302.85
payable
Accrued liabilities 8758265.23 7785977.55
Deferred income 75130950.40 84762685.97
Deferred income tax liabilities 13589235.48 11153985.85
Other non-current liabilities
Total non-current liabilities 226544416.75 274747979.35
Total liabilities 7652959406.98 5611538595.70
Owners’ equity:
Share capital 1029923715.00 1029923715.00
Other equity instrument
Including: Preferred stock
Perpetual capital securities
Capital public reserve 2740508510.57 2740508510.57
Less: Inventory shares
Other comprehensive income
Special reserve 505111.75 687069.38
Surplus reserve 476835029.14 441000525.80
Retained profit 1294109238.10 1064291842.43
Total owner’s equity 5541881604.56 5276411663.18
Total liabilities and owner’s equity 13194841011.54 10887950258.88
Legal Representative: Wu Dinggang
Person in charge of accounting works: Pang Haitao
Person in charge of accounting institute: Yang Jun
3. Consolidated Profit Statement
In RMB
20232022
I. Total operating income 24247678970.56 20215220192.20
Including: Operating income 24247678970.56 20215220192.20
182Annual Report 2023
Interest income
Insurance gained
Commission charge and commission
income
II. Total operating cost 23472449382.09 19895690025.90
Including: Operating cost 20866555797.73 17444530235.32
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 195095277.47 158529459.29
Sales expense 1571486417.63 1428874991.47
Administrative expense 361134794.49 358586472.37
R&D expense 596920491.26 560383547.49
Financial expense -118743396.49 -55214680.04
Including: Interest expenses 30088976.40 30470512.88
Interest income 191805963.97 159034499.30
Add: Other income 146608702.27 102556591.53
Investment income (Loss is listed with
8438592.0433018838.80
“-”)
Including: Investment income on
19133884.4020440095.97
affiliated company and joint venture
The termination of income recognition
for financial assets measured by -22489932.70 -24385552.13
amortized cost
Exchange income (Loss is listed with
“-”)
Net exposure hedging income (Loss is
listed with “-”)
Income from change of fair value
7565104.0524137501.27
(Loss is listed with “-”)
Loss of credit impairment (Loss is listed
-81621384.13-164446765.99
with “-”)
Losses of devaluation of asset (Loss is
-55134397.60-56496124.06
listed with “-”)
Income from assets disposal (Loss is
1336229.4727602023.18
listed with “-”)
III. Operating profit (Loss is listed with
802422434.57285902231.03
“-”)
183Annual Report 2023
Add: Non-operating income 14660583.17 9249343.27
Less: Non-operating expense 7732783.31 8487764.98
IV. Total profit (Loss is listed with “-”) 809350234.43 286663809.32
Less: Income tax expense 36147590.26 9565346.81
V. Net profit (Net loss is listed with “-”) 773202644.17 277098462.51
(i) Classify by business continuity
1.continuous operating net profit (net
773202644.17277098462.51loss listed with ‘-”)
2.termination of net profit (net loss listedwith ‘-”)
(ii) Classify by ownership
1.Net profit attributable to owner’s of
741038108.54244538734.49
parent company
2.Minority shareholders’ gains and losses 32164535.63 32559728.02
VI. Net after-tax of other comprehensive
433908.69184552.23
income
Net after-tax of other comprehensive
income attributable to owners of parent 177100.58 21807.94
company
(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 177100.58 21807.94
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
184Annual Report 2023
5.Cash flow hedging reserve
6.Translation differences arising on
translation of foreign currency financial 177100.58 21807.94
statements
7.Other
Net after-tax of other comprehensive
income attributable to minority 256808.11 162744.29
shareholders
VII. Total comprehensive income 773636552.86 277283014.74
Total comprehensive income attributable
741215209.12244560542.43
to owners of parent Company
Total comprehensive income attributable
32421343.7432722472.31
to minority shareholders
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 before
combination while 0 yuan achieved last period
Legal Representative: Wu Dinggang
Person in charge of accounting works: Pang Haitao
Person in charge of accounting institute: Yang Jun
4. Profit Statement of Parent Company
In RMB
Item 2023 2022
I. Operating income 9608398530.57 7398328633.00
Less: Operating cost 8694749484.01 6720247726.04
Taxes and surcharge 86233117.13 63202337.06
Sales expenses 274974268.69 189954443.11
Administration expenses 139854173.76 132320693.51
R&D expenses 281165357.51 245429316.63
Financial expenses -34410768.97 -17219867.57
Including: Interest expenses 28980467.63 28128736.65
Interest income 91292890.78 77631152.76
Add: Other income 26474061.57 31044974.74
Investment income (Loss is listed with
190286552.5879584251.32
“-”)
Including: Investment income on
18713956.6111196374.66
affiliated Company and joint venture
The termination of income recognition
for financial assets measured by -6157758.00 -4767753.29
amortized cost (Loss is listed with “-”)
185Annual Report 2023
Net exposure hedging income (Loss is
listed with “-”)
Changing income of fair value (Loss is
13710776.8120986049.21
listed with “-”)
Loss of credit impairment (Loss is listed
-9095054.57-40156897.45
with “-”)
Losses of devaluation of asset (Loss is
-11009739.57-192559.56
listed with “-”)
Income on disposal of assets (Loss is
1382274.0027531109.99
listed with “-”)
II. Operating profit (Loss is listed with
377581769.26183190912.47
“-”)
Add: Non-operating income 1740921.86 2611298.85
Less: Non-operating expense 3452240.92 2250917.85
III. Total Profit (Loss is listed with “-”) 375870450.20 183551293.47
Less: Income tax 17525416.84 2648942.71
IV. Net profit (Net loss is listed with “-”) 358345033.36 180902350.76
(i) continuous operating net profit (net
358345033.36180902350.76loss listed with ‘-”)
(ii) termination of net profit (net losslisted 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
186Annual Report 2023
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 358345033.36 180902350.76
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 Dinggang
Person in charge of accounting works: Pang Haitao
Person 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
25221834323.6621089427398.84
and providing labor services
Net increase of customer deposit and
interbank deposit
Net increase of loan from central bank
Net increase of capital borrowed from
other financial institution
Cash received from original insurance
contract fee
Net cash received from reinsurance
business
Net increase of insured savings and
investment
Cash received from interest commission
charge and commission
Net increase of capital borrowed
Net increase of returned business capital
Net cash received by agents in sale and
purchase of securities
Write-back of tax received 635547201.36 642483547.59
Other cash received concerning 109951859.80 218923533.27
187Annual Report 2023
operating activities
Subtotal of cash inflow arising from
25967333384.8221950834479.70
operating activities
Cash paid for purchasing commodities
20643740044.3817573333598.31
and receiving labor service
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 1916516956.80 1740232680.16
Taxes paid 563839013.94 516256689.43
Other cash paid concerning operating
760894064.66655855763.74
activities
Subtotal of cash outflow arising from
23884990079.7820485678731.64
operating activities
Net cash flows arising from operating
2082343305.041465155748.06
activities
II. Cash flows arising from investing
activities:
Cash received from recovering
1290000000.00923322268.35
investment
Cash received from investment income 38159487.68 41956520.69
Net cash received from disposal of fixed
4122107.9378341283.79
intangible and other long-term assets
Net cash received from disposal of
subsidiaries and other units
Other cash received concerning investing
190064612.83161913535.52
activities
Subtotal of cash inflow from investing
1522346208.441205533608.35
activities
Cash paid for purchasing fixed
274018117.08276171087.23
intangible and other long-term assets
Cash paid for investment 1531781453.97 1300000000.00
Net increase of mortgaged loans
Net cash received from subsidiaries and
other units obtained
Other cash paid concerning investing
116256169.35135747164.72
activities
188Annual Report 2023
Subtotal of cash outflow from investing
1922055740.401711918251.95
activities
Net cash flows arising from investing
-399709531.96-506384643.60
activities
III. Cash flows arising from financing
activities:
Cash received from absorbing
368459272.52
investment
Including: Cash received from absorbing
minority shareholders’ investment by 368459272.52
subsidiaries
Cash received from loans 1923365052.15 1255467515.59
Other cash received concerning
370831446.1823536567.33
financing activities
Subtotal of cash inflow from financing
2294196498.331647463355.44
activities
Cash paid for settling debts 1489564263.12 1522040918.37
Cash paid for dividend and profit
133439380.60109680687.85
distributing or interest paying
Including: Dividend and profit of
16677010.6325417858.64
minority shareholder paid by subsidiaries
Other cash paid concerning financing
89323864.66770652259.57
activities
Subtotal of cash outflow from financing
1712327508.382402373865.79
activities
Net cash flows arising from financing
581868989.95-754910510.35
activities
IV. Influence on cash and cash
equivalents due to fluctuation in 13403803.08 69166544.08
exchange rate
V. Net increase of cash and cash
2277906566.11273027138.19
equivalents
Add: Balance of cash and cash
6113222069.765840194931.57
equivalents at the period -begin
VI. Balance of cash and cash equivalents
8391128635.876113222069.76
at the period -end
Legal Representative: Wu Dinggang
Person in charge of accounting works: Pang Haitao
Person in charge of accounting institute: Yang Jun
6. Cash Flow Statement of Parent Company
In RMB
189Annual Report 2023
Item 2023 2022
I. Cash flows arising from operating
activities:
Cash received from selling commodities
8764645288.777440766977.75
and providing labor services
Write-back of tax received 219064162.92 224205911.53
Other cash received concerning
39429001.1875592511.92
operating activities
Subtotal of cash inflow arising from
9023138452.877740565401.20
operating activities
Cash paid for purchasing commodities
7020255494.886385517418.45
and receiving labor service
Cash paid to/for staff and workers 555776356.25 508284706.96
Taxes paid 130615286.70 67235152.14
Other cash paid concerning operating
247010356.89227845615.46
activities
Subtotal of cash outflow arising from
7953657494.727188882893.01
operating activities
Net cash flows arising from operating
1069480958.15551682508.19
activities
II. Cash flows arising from investing
activities:
Cash received from recovering
170094761.15457300378.10
investment
Cash received from investment income 252919498.24 82054474.12
Net cash received from disposal of fixed
4023955.6878191029.45
intangible and other long-term assets
Net cash received from disposal of
subsidiaries and other units
Other cash received concerning investing
92192116.8682511271.70
activities
Subtotal of cash inflow from investing
519230331.93700057153.37
activities
Cash paid for purchasing fixed
145165539.29164617367.95
intangible and other long-term assets
Cash paid for investment 239391719.60 730000000.00
Net cash received from subsidiaries and
other units obtained
Other cash paid concerning investing
54598530.0649326025.46
activities
Subtotal of cash outflow from investing
439155788.95943943393.41
activities
Net cash flows arising from investing
80074542.98-243886240.04
activities
190Annual Report 2023
III. Cash flows arising from financing
activities:
Cash received from absorbing
investment
Cash received from loans 1917365052.15 1189467515.59
Other cash received concerning
191861996.183251034.56
financing activities
Subtotal of cash inflow from financing
2109227048.331192718550.15
activities
Cash paid for settling debts 1433564263.12 1502040918.37
Cash paid for dividend and profit
115586128.2981201833.46
distributing or interest paying
Other cash paid concerning financing
52320157.85264626271.90
activities
Subtotal of cash outflow from financing
1601470549.261847869023.73
activities
Net cash flows arising from financing
507756499.07-655150473.58
activities
IV. Influence on cash and cash
equivalents due to fluctuation in 1866961.18 19360991.70
exchange rate
V. Net increase of cash and cash
1659178961.38-327993213.73
equivalents
Add: Balance of cash and cash
3086968775.613414961989.34
equivalents at the period -begin
VI. Balance of cash and cash equivalents
4746147736.993086968775.61
at the period -end
Legal Representative: Wu Dinggang Person in charge of accounting works: Pang Haitao Person in charge of
accounting institute: Yang Jun
191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
2023
Owners’ equity attributable to the parent Company
Other
equity instrument Prov
Less:
Perp Capi Other Reaso ision
Item Inve
etual tal compreh nable Surplus of Retained Othe Minority interests Total owners’ equity
Share capital Prefe ntory Subtotal
capit Othe reser ensive reserv reserve gene profit r
rred share
al r ve income e ral
stock s
secur risk
ities
I. The
ending 280
-2467
balance of 102992371 649 441201471.9 909082037.
208814205.75168286872.09370748395.265539035267.35
the 5.00 390 8 66
62.638
previous 4.30
year
Add:
Changes
of 17219.50 167328.13 184547.63 -8145.54 176402.09
accountin
g policy
Error
correction
of the last
192长虹美菱股份有限公司2023年年度报告
period
Other
II. The
280
beginning - 2467
102992371649441218691.4909249365.
balance of 208814 205.7 5168471419.72 370740249.72 5539035267.35
5.00390879
the current 62.63 8
4.30
year
III.Increase/
Decrease -
8779
in the 990 177100. 612510470.
606.135834503.34656311234.37-1488117.35654823117.02
period 446. 58 85
3
(Decrease 53
is listed
with “-”)
(i) Total
comprehe 177100. 741038108.
741215209.1232421343.74773636552.86
nsive 58 54
income
(ii)
Owners’ -
devoted 990
-990446.53-18627553.47-19618000.00
and 446.decreased 53
capital
1.Commo
n shares
invested
by
193长虹美菱股份有限公司2023年年度报告
sharehold
ers
2. Capital
invested
by holders
of other
equity
instrument
s
3. Amount
reckoned
into
owners
equity
with
share-
based
payment
-
990
4. Other -990446.53 -18627553.47 -19618000.00
446.
53
(iii) Profit -
distributio 35834503.34 128527637. -92693134.35 -16677010.63 -109370144.98
n 69
1.
-
Withdraw
35834503.3435834503.3
al of
4
surplus
194长虹美菱股份有限公司2023年年度报告
reserves
2.
Withdraw
al of
general
risk
provisions
3.
Distributi
-
on for
92693134.3-92693134.35-16677010.63-109370144.98
owners (or
5
sharehold
ers)
4. Other
(iv)
Carrying
forward
internal
owners’
equity
1. Capital
reserves
conversed
to capital
(share
capital)
2. Surplus
reserves
conversed
195长虹美菱股份有限公司2023年年度报告
to capital
(share
capital)
3.
Remedyin
g loss
with
surplus
reserve
4. Carry-
over
retained
earnings
from the
defined
benefit
plans
5. Carry-
over
retained
earnings
from other
comprehe
nsive
income
6. Other
(v) 8779
Reasonabl 606.1 8779606.13 1395103.01 10174709.14
e reserve 3
196长虹美菱股份有限公司2023年年度报告
1.
Withdraw 3127
al in the 7872. 31277872.27 2105658.15 33383530.42
report 27
period
2. Usage
2249
in the
8266.22498266.14710555.1423208821.28
report
14
period
(vi)
Others
IV. 280
-11246
Balance at 102992371 550 477053194.8 152175983
207043811.95824782654.09369252132.376194034786.46
the end of 5.00 345 2 6.64
62.051
the period 7.77
Last Period
In RMB
2022
Owners’ equity attributable to the parent Company
Other
equity instrument
Less:
Shar Perp Capi Other Reaso Provis
Item Inve
e etual tal compreh nable Surplus ion of Minority interests Total owners’ equity
Prefe ntory Retained profit Other Subtotal
capit capit Othe reser ensive reserv reserve gener
rred share
al al r ve income e al risk
stock s
secur
ities
I. The ending 104 268 264 - 423111236.9 734129724.0 4837334400. 157456980.84 4994791381.05
197长虹美菱股份有限公司2023年年度报告
balance of the 459 282 305 209032 0 0 21
previous year 788 940 71.3 70.57
1.000.268
Add: Changes of
accounting policy
Error correction
of the last period
Enterprise
combine under the
same control
104268264
-
459282305423111236.9734129724.04837334400.
Other 209032 157456980.84 4994791381.05
78894071.30021
70.57
1.000.268
--
123
II. The beginning 146 264 2467
66421807.9174952313.6330952471.8
balance of the 741 305 205.7 18090235.08 213291414.42 544243886.30
504.468
current year 66.0 71.3 8
04
08
III. Increase/
Decrease in the 21807.9 244538734.4 244560542.4
32722472.31277283014.74
period (Decrease 4 9 3
is listed with “-”)
--
123
(i) Total 146 264
664135420909.4
comprehensive 741 305 205763149.35 341184058.77
504.2
income 66.0 71.3
04
08
(ii) Owners’ - - - -737262.35 228415223.18 227677960.83
198长虹美菱股份有限公司2023年年度报告
devoted and 146 124 264
decreased capital 741 936 305
66.067.771.3
038
1.Common shares
invested by
shareholders
2. Capital invested
by holders of
other equity
instruments
3. Amount
136
reckoned into
158136158171.7
owners equity -22652073.83 113506097.94
171.7
with share-based
77
payment
--
4. Other 18090235.08 -25417858.64 -76914044.39
69586420.8351496185.75
(iii) Profit -
18090235.08
distribution 18090235.08
1. Withdrawal of
surplus reserves
2. Withdrawal of
--
general risk -25417858.64 -76914044.39
51496185.7551496185.75
provisions
3. Distribution for
owners (or
shareholders)
4. Other
199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
2467
6. Other 205.7 2467205.78 223651.40 2690857.18
8
(v) Reasonable 2467
2467205.78223651.402690857.18
reserve 205.7
200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
102280
-2467
992649441201471.9909082037.65168286872.
(vi) Others 208814 205.7 370748395.26 5539035267.35
3713908609
62.638
5.004.30
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
2023
Other Othe
equity instrument r
com Surp
Less:
Item Capital preh Reasonable lus
Share capital Perpetual Inventory Retained profit Other Total owners’ equity
Preferred reserve ensi reserve reser
capital Other shares
stock ve ve
securities
inco
me
I. The ending 440
102992371274050
balance of the 687069.38 983 1064136866.98 5276239468.23
5.008510.57
previous year 306.
201长虹美菱股份有限公司2023年年度报告
30
Add: Changes 172
of accounting 19.5 154975.45 172194.95
policy 0
Error
correction of
the last period
Other
II. The 441
beginning 102992371 274050 000
687069.381064291842.435276411663.18
balance of the 5.00 8510.57 525.current year 80
III. Increase/
Decrease in 358
the period 345
-181957.63229817395.67265469941.38
(Decrease is 03.3
listed with 4
“-”)
(i) Total
comprehensiv 358345033.36 358345033.36
e income
(ii) Owners’
devoted and
decreased
capital
1.Common
shares
invested by
shareholders
202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
358
(iii) Profit 345
-128527637.69-92693134.35
distribution 03.3
4
358
1. Withdrawal
345
of surplus -35834503.34
03.3
reserves
4
2. Distribution
for owners (or -92693134.35 -92693134.35
shareholders)
3. Other
(iv) Carrying
forward
internal
owners’
equity
203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
comprehensiv
e income
6. Other
(v)
Reasonable -181957.63 -181957.63
reserve
204长虹美菱股份有限公司2023年年度报告
1. Withdrawal
in the report 8557762.79 8557762.79
period
2. Usage in
the report 8739720.42 8739720.42
period
(vi) Others
476
IV. Balance at
102992371274050835
the end of the 505111.75 1294109238.10 5541881604.56
5.008510.57029.
period
14
Last period
In RMB
2022
Other Other
equity instrument compr
Less:
Item Capital ehensi Reasonabl Surplus
Share capital Perpetual Inventory Retained profit Other Total owners’ equity
Preferred reserve ve e reserve reserve
capital Other shares
stock incom
securities
e
I. The ending
10445978827530026430571.422893
balance of the 952820937.05 5146883496.19
1.002178.3038071.22
previous year
Add: Changes
of accounting
policy
Error
correction of
the last period
205长虹美菱股份有限公司2023年年度报告
Other
II. The
beginning 104459788 275300 26430571. 422893
952820937.055146883496.19
balance of the 1.00 2178.30 38 071.22
current year
III. Increase/
Decrease in
---
the period 687069.3 180902
14674166.012493626430571.111315929.93129355972.04
(Decrease is 8 35.08
067.7338
listed with
“-”)
(i) Total
comprehensiv 180902350.76 180902350.76
e income
(ii) Owners’
---
devoted and
14674166.012493626430571.-737262.35
decreased
067.7338
capital
1.Common
---
shares
14674166.012493626430571.-737262.35
invested by
067.7338
shareholders
2. Capital
invested by
holders of
other equity
instruments
3. Amount
reckoned into
206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 180902
-69586420.83-51496185.75
distribution 35.08
1. Withdrawal
180902
of surplus -18090235.08
35.08
reserves
2. Distribution
for owners (or -51496185.75 -51496185.75
shareholders)
3. Other
(iv) Carrying
forward
internal
owners’
equity
1. Capital
reserves
conversed to
capital (share
capital)
2. Surplus
reserves
conversed to
capital (share
capital)
207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
comprehensiv
e income
6. Other
(v)
687069.3
Reasonable 687069.38
8
reserve
1. Withdrawal
687069.3
in the report 687069.38
8
period
2. Usage in
the report
period
(vi) Others
IV. Balance at
102992371274050687069.3440983
the end of the 1064136866.98 5276239468.23
5.008510.578306.30
period
208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
209Annotations 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 profile
Changhong 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 and
approved on June 12th 1992 through [WanTiGaiHanZi (1992) No.039] issued by original Mechanism Reform
Committee of Anhui Province. On August 30th 1993 through Anhui Provincial Government [Wanzhenmi (1993)
No.166] and re-examination of China Securities Regulatory Commission the Company made first public issue for
30 million A shares and the Company was listed on Oct. 18th 1993 in Shenzhen Stock Exchange. On August 13th
1996 the Company was approved to issue 100 million B shares to investors abroad through [ZhengWeiFa (1996)
No.26] issued by China Securities Regulatory Commission. The Company went public in Shenzhen Stock Exchange
on August 28th 1996.State-owned Assets Supervision & Administration Commission of the State Council approved such transfers with
Document Guozi Chanquan (2007) No.253 Reply on Matters of Hefei Meiling Group Holdings Limited
Transferring Partial State-owned Ownership Hefei Meiling Group Holdings Limited (hereinafter referred to as
Meiling Group) transferred its holding 37852683 shares in 82852683 state-owned shares of the Company to
Sichuan Changhong Electronic Group Co. Ltd (hereinafter referred to as Changhong Group) other 45000000
shares 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 made
consideration that non-tradable share holders deliver 1.5 shares to A share holders per 10 shares and original
Meiling Group made prepayment 3360329 shares for some non-tradable share holders as consideration for split
reform plan.On 29 May 2008 concerning 34359384 state-owned shares (including 3360329 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-owned
Assets Supervision & Administration Commission of Hefei Municipal agrees to transfer the above said shares to
Hefei Xingtai Holding Group Co. Ltd.(“Xingtai Holding Co.”) for free. On 7 August 2008 the “Reply of 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 with
Sichuan Changhong in which 32078846 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] issued
by SASAC agrees the above said share transferring.On 24 December 2010 being deliberated and approved in 32nd Session of 6th BOD and 2nd Extraordinary
210Annotations 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 116731500 RMB ordinary shares (A stock) were offering privately to target investors with issue price of
RMB 10.28/share. Capital collecting amounting to RMB 1199999820 after issuing expenses RMB 22045500
deducted net capital collected amounting to RMB 1177954320 and paid-in capital (share capital) increased RMB
116731500 with capital reserve (share premium) RMB 1061106088.5 increased. The increasing capital has been
verified by Capital Verification Report No.: ［XYZH2010CDA6021］issued from Shin Wing CPA Co. Ltd.On 20 June 2011 the general meeting of the Company considered and approved the 2010 profit distribution plan
namely to distribute cash dividends of RMB0.5 (tax included) plus two shares for every ten shares held by
shareholders to all shareholders based on the total share capital of 530374449 shares as of 31 December 2010.The total share capital of the Company upon profit distribution increased to 636449338 shares. The capital increase
was verified by Anhui Huashen Zhengda Accounting Firm with the verification report WHSZDKYZ (2011) No.141.On 26 June 2012 the general meeting of the Company considered and approved the 2011 profit distribution and
capitalization of capital reserve plan namely to distribute cash dividends of RMB0.5 (tax included) plus two shares
for every ten shares to all shareholders capitalized from capital reserve based on the total share capital of
636449338 shares as of 31 December 2011. The total share capital of the Company upon implementation of
capitalization of capital reserve increased to 763739205 shares from 636449338 shares and was verified by
Anhui Anlian Xinda Accounting Firm with the verification report WALXDYZ (2012) No.093.On November 18 2015 considered and approved by the 12th Session of the 8th BOD of the company and the first
extraordinary general meeting in 2016 and approved by the document of China Securities Regulatory Commission[CSRC License No. (2016) 1396] “Reply to the approval of non-public offering of shares of Hefei Meiling Co.Ltd.” the company has actually raised funds of 1569999998.84 yuan by non-public offering of no more than
334042553 new shares at face value of 1 yuan per share and with issue price no less than 4.70 yuan per share after
deducting the issue costs of 29267276.08 yuan the net amount of raised funds is 1540732722.76 yuan the
increased paid-in capital (share capital) of 280858676.00 yuan increased capital reserve (share premium) of
1259874046.76 yuan. This capital increase has been verified by No.［XYZH2016CDA40272］capital verification
report of Shine Wing Certified Public Accountants (LLP).Since the first repurchase of shares on November 4 2020 the company had cumulatively repurchased 14674166
shares of the company (B shares) in centralized bidding transactions through the special securities account for
repurchase until February 18 2022 and completed the cancellation procedures of the repurchased shares at the
Shenzhen Branch of China Securities Depository and Clearing Co. Ltd. on March 2 2022 a total of 14674166
shares of the company (B shares) were cancelled accounting for 1.4048% of the company's total share capital before
cancellation. After the cancellation the total share capital of the company was reduced from 1044597881 shares
to 1029923715 shares.Ended as December 31 2023 total share capital of the Company amounting to 1029923715shares with ordinary
shares in full. Among which 881733881 shares of A-share accounting 85.62% in total shares while B-share with
148189834 shares accounting 14.38% in total shares. Specific capital structure is as follows:
211Annotations 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 7688842.00 0.75
1. State-owned shares
2. State-owned legal person’s shares 1141053.00 0.11
3. Other domestic shares 5280369.00 0.52
Including: Domestic legal person’s shares 3363539.00 0.33
Domestic natural person’s shares 1916830.00 0.19
4. Foreign shares 1267420.00 0.12
Including: Overseas legal person’s shares
Overseas natural person’s shares 1267420.00 0.12
(II)Unrestricted shares 1022234873.00 99.25
1. RMB Ordinary shares 875312459.00 84.99
2. Domestically listed foreign shares 146922414.00 14.26
3. Overseas listed foreign shares
4. Others
Total shares 1029923715.00 100.00
The Company belongs to the electrical machinery and equipment manufacturing industry and engaged in the
production and sale of refrigerator freezer and air-conditioner. Unified social credit code of the Company:
9134000014918555XK; Address: No.2163 Lianhua Road Economy and Technology Development Zone Hefei
City; Legal Representative: Wu Dinggang; register capital (paid-in capital): 1029923715 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 to
the Articles of Association of the Company the financial statement will be submitted to the General Meeting of
Shareholders 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 accordance
with the Accounting Standards for Business Enterprises and its application guidelines explanations and other
relevant provisions (hereinafter referred to as "Accounting Standards for Business Enterprises") promulgated by the
Ministry of Finance as well as the disclosure-related provisions of No.15 Rules on Information Disclosure and
Compilation of Companies Offering Securities to the Public - General Provisions on Financial Reports (revised in
2023) 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 prepared
the financial statement on basis of going concern is reasonable.III.Significant Accounting Policy and accounting Estimation
Specific accounting policies and accounting estimates: The specific accounting policies and accounting estimates
212Annotations 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 debt
provision of receivable inventory depreciation provision capitalization conditions of R&D expenses revenue
recognition 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 Business
Enterprises 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 and
liabilities.
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. The
matters disclosed in the notes to the financial statements involving judgement by materiality standard and the
determination method and selection basis of materiality standard are as follows:
Matters disclosed involving the judgment by Determination method and selection basis of importance
materiality standards standard
The individual recovery or reversal amount accounts for more than
Recovery or reversal of important accounts receivable
10% of the total recovery or reversal amount of accounts receivable
bad debt reserves
and the amount is greater than RMB 10 million
The single item write off amount accounts for more than 10% of the
Actual write off of important accounts receivable total bad debt write off amount of various receivables and the
amount is greater than 5 million yuan
The single provision amount accounts for 10% of the total bad debt
Important accounts receivable with single provision for
provision for various accounts receivable and is greater than RMB
bad debt reserves
50 million
Single debt investment accounts for 5% of the total debt investment
Important debt investment
and the amount is greater than RMB 20 million
The change in the book value of contract assets accounts for more
Significant changes in the book value of contract assets
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 The change in the book value of contractual liabilities accounts for
liabilities more than 30% of the initial balance of contractual liabilities
213Annotations 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 Determination method and selection basis of importance
materiality standards standard
Accounts payable with a single account age exceeding 1 year
Important accounts payable account for more than 5% of the total accounts payable and with an
amount greater than RMB 100 million
Other payables with a single account age exceeding 1 year account
Important other payables for more than 5% of the total other payables and an amount greater
than RMB 50 million
Subsidiary net assets account for over 1% of the company's net
Important non wholly-owned subsidiaries
assets
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
Important joint ventures or associates 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
Individual investment activities account for more than 10% of the
Important investment activities 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 Not involving current cash inflows and outflows with an impact on
inflows and outflows the current financial statements greater than 10% of net assets
6.Accountant arrangement method of business combination under common control and not under common control
As acquirer the Company measures the assets and liabilities acquired through business combination under common
control at their carrying values as reflected in the consolidated financial statement of the ultimate controller as of
the combination date. Capital reserve shall be adjusted in respect of any difference between carrying value of the
net assets acquired and carrying value of the combination consideration paid. In case that capital reserve is
insufficient to offset the Company would adjust retained earnings.The acquiree’s net identifiable assets liabilities or contingent liabilities acquired through business combination not
under common control shall be measured at fair value as of the acquisition date. The cost of combination represents
the fair value of the cash or non-cash assets paid liabilities issued or committed and equity securities issued by the
Company as at the date of combination in consideration for acquiring the controlling power in the acquiree together
with the sum of any directly related expenses occurred during business combination(in case of such business
combination as gradually realized through various transactions the combination cost refers to the sum of each cost
of respective separate transaction). Where the cost of the combination exceeds the acquirer’s interest in the fair
value of the acquirer’s identifiable net assets acquired the difference is recognized as goodwill; where the cost of
combination is lower than the acquirer’s interest in the fair value of the acquiree’s identifiable net assets the
Company shall firstly make further review on the fair values of the net identifiable assets liabilities or contingent
liabilities acquired as well as the fair value of the non-cash assets portion of combination consideration or the equity
securities issued by the Company. In case that the Company finds the cost of combination is still lower than the
214Annotations 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 difference
is 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 in
the related activities of the investee and has the ability to influence the amount of returns by using the power over
the investee.The Company shall put all the subsidiaries controlled and main body structured into consolidated financial
statements.Any difference arising from the inconformity of accounting year or accounting policies between the subsidiaries
and the Company shall be adjusted in the consolidated financial statements.All the material inter-company transactions non-extraordinary items and unrealized profit within the combination
scope are written-off when preparing consolidated financial statement. Owners’ equity of subsidiary not attributable
to parent company and current net gains and losses other comprehensive income and total comprehensive income
attributable to minority shareholders are recognized as non-controlling interests minority interests other
comprehensive income attributable to minority shareholders and total comprehensive income attributable to
minority shareholders in consolidated financial statement respectively.As for subsidiary acquired through business combination under common control its operating results and cash flow
will be included in consolidated financial statement since the beginning of the period when combination occurs.When preparing comparative consolidated financial statement the relevant items in previous years financial
statement shall be adjusted as if the reporting entity formed upon combination has been existing since the ultimate
controller commenced relevant control.As for equity interests of the investee under common control acquired through various transactions which eventually
formed business combination the Company shall supplement disclosure of the accounting treatment in consolidated
financial statement in the reporting period when controlling power is obtained. For example as for equity interests
of the investee under common control acquired through various transactions which eventually formed business
combination adjustments shall be made as if the current status had been existing when the ultimate controller
commenced control in connection of preparing consolidated financial statement; in connection with preparing
comparative statement the Company shall consolidate the relevant assets and liabilities of the acquiree into the
Company’s comparative consolidated financial statement to the extent not earlier than the timing when the Company
and the acquiree are all under control of the ultimate controller and the net assets increased due to combination
shall be used to adjust relevant items under owners’ equity in comparative statement. In order to prevent double
computation of the value of the acquiree’s net assets the relevant profits and losses other comprehensive income
and change of other net assets recognized during the period from the date when the Company acquires original
equity interests and the date when the Company and the acquiree are all under ultimate control of the same party
(whichever is later) to the date of combination in respect of the long-term equity investment held by the Company
before satisfaction of combination shall be utilized to offset the beginning retained earnings and current gains and
215Annotations 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 cash
flow will be included in consolidated financial statement since the Company obtains controlling power. When
preparing consolidated financial statement the Company shall adjust the subsidiary’s financial statement based on
the fair value of the various identifiable assets liabilities or contingent liabilities recognized as of the acquisition
date.As for equity interests of the investee not under common control acquired through various transactions which
eventually formed business combination the Company shall supplement disclosure of the accounting treatment in
consolidated financial statement in the reporting period when controlling power is obtained. For example as for
equity interests of the investee not under common control acquired through various transactions which eventually
formed business combination when preparing consolidated financial statement the Company would re-measure
the equity interests held in the acquiree before acquisition date at their fair value as of the acquisition date and any
difference between the fair value and carrying value is included in current investment income. in case that the equity
interests in acquiree held by the Company before the relevant acquisition date involves other comprehensive income
at equity method and change of other owners’ equity (other than net gains and losses other comprehensive income
and profit distribution) then the equity interests would transfer to investment gains and losses for the period which
the acquisition date falls upon. The other comprehensive income arising from change of the net liabilities or net
assets under established benefit scheme as acquiree’s re-measured such scheme is excluded.The transaction with non-controlling interest to dispose long-term equity investment in a subsidiary without losing
control rights over the subsidiary the difference between the proceeds from disposal of interests and the decrease
of the shared net assets of the subsidiary is adjusted to capital premium (share premium). In case capital reserve is
not sufficient to offset the difference retained earnings will be adjusted.As for disposal of part equity investment which leads to losing control over the investee the Company would re-
measure the remaining equity interests at their fair value as of the date when the Company loses control over the
investee when preparing consolidated financial statement. The sum of consideration received from disposal of
equity interest and fair value of the remaining equity interest less the net assets of the original subsidiary attributable
to the Company calculated based on the original shareholding proportion since the acquisition date or the date then
consolidation commences is included in investment gains and losses for the period when control is lost meanwhile
to offset goodwill. Other comprehensive income related to equity interest investment in original subsidiaries is
transferred into current investment gains and losses upon lost of control.If the disposal of the equity investment of subsidiary is realized through multi pletran section sunlit loss of control
and is a pack age deal. the accounting treatment of the sterna sections should be dealt with as one transaction of
disposal of the subsidiary until loss of control. However before the Company loses total control of the
subsidiary the differences between the actual disposal price and the share of the net assets of the subsidiary
disposed of in every transaction should be recognized as other comprehensive income in the consolidated financial
statements and transferred to profit or loss when losing control.
216Annotations 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 entity
The joint venture arrangement of the Company consists of joint controlled entity and joint venture. As for jointly
controlled entity the Company determines the assets held and liabilities assumed separately as a party to the jointly
controlled entity recognizes such assets and liabilities according to its proportion and recognizes relevant income
and expense separately under relevant agreement or according to its proportion. As for asset transaction relating to
purchase and sales with the jointly controlled entity which does not constitute business activity part of the gains
and losses arising from such transaction attributable to other participators of the jointly controlled entity is only
recognized.
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 drawn
on demand. Cash equivalents are short-term highly liquid investments held by the Group that are readily
convertible to known amounts of cash and which are subject to 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 pursuant
to the spot exchange rate as of the business day. As at the balance sheet date monetary items expressed by foreign
currency are converted into RMB pursuant to the spot exchange rate as of the balance sheet date. The conversion
difference occurred is recorded into prevailing gains and losses other than the disclosure which is made according
to capitalization rules for the exchange difference occurred from the special foreign currency borrowings borrowed
for constructing and producing the assets satisfying condition of capitalization. As for the foreign currency non-
monetary items measured by fair value the amount is then converted into RMB according to the spot exchange rate
as of the confirmation day for fair value. And the conversion difference occurred during the procedure is recorded
into prevailing gains and losses directly as change of fair value. As for the foreign currency non-monetary items
measured by historical cost conversion is made with the spot exchange rate as of the business day with no change
in RMB amount.
(2) Conversion of foreign currency financial statement
Spot exchange rate as of the balance sheet date is adopted for conversion of assets and liabilities in foreign currency
balance sheet; as for the items in statement of owners’ equity except for “Retained profit” conversion is made
pursuant to the spot exchange rate of business day; income and expense items in income statement then are also
converted pursuant to the spot exchange rate of transaction day. Difference arising from the aforementioned
conversions shall be listed separately in items of owners’ equity. Spot exchange rate as of the occurrence date of
cash flow is adopted for conversion of foreign currency cash flow. The amount of cash affected by exchange rate
movement shall be listed separately in cash flow statement.
11. Financial assets and liabilities
A financial asset or liability is recognized when the group becomes a party to a financial instrument contract. The
217Annotations 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 and
liabilities measured by fair value and with variation reckoned into current gains/losses the related transaction
expenses are directly included in current gains or losses; for other types of financial assets and liabilities the related
transaction costs are included in the initial recognition amount.
(1) Method for determining the fair value of financial assets and financial liabilities
Fair value refers to the price that a market participant can get by selling an asset or has to pay for transferring a
liability in an orderly transaction that occurs on the measurement date. For a financial instrument having an active
market the Company uses the quoted prices in the active market to determine its fair value. Quotations in an active
market refer to prices that are readily available from exchanges brokers industry associations pricing services etc.and represent the prices of market transactions that actually occur in an arm's length transaction. If there is no active
market for a financial instrument the Company uses valuation techniques to determine its fair value. Valuation
techniques include reference to prices used in recent market transactions by parties familiar with the situation and
through voluntary trade and reference to current fair values of other financial instruments that are substantially
identical discounted cash flow methods and option pricing models.
(2) Category and measurement on financial assets
The group divided the financial assets as the follow while initially recognized: the financial assets measured at
amortized cost; the financial assets measured at fair value and whose changes are included in other comprehensive
income; and the financial assets measured by fair value and with variation reckoned into current gains/losses. The
classification of financial assets depends on the business model that the Group's enterprises manage the financial
assets and the cash flow characteristics of the financial assets.
1) The financial assets measured at amortized cost
Financial assets are classified as financial assets measured at amortized cost when they also meet the following
conditions: The group's business model for managing the financial assets is to collect contractual cash flows; the
contractual terms of the financial assets stipulate that cash flow generated on a specific date is only paid for the
principal and interest based on the outstanding principal amount. For such financial assets the effective interest
method is used for subsequent measurement according to the amortized cost and the gains or losses arising from
amortization or impairment are included in current profits and losses. Such financial assets mainly include monetary
funds notes receivable accounts receivable other receivables debt investment and long-term receivables and so
on. The Group lists the debt investment and long-term receivables due within one year (including one year) from
the balance sheet date as non-current assets due within one year and lists the debt investment with time limit within
one year (including one year) when acquired as other current assets.
2) Financial assets measured at fair value and whose changes are included in other comprehensive income
Financial assets are classified as financial assets measured at fair value and whose changes are included in other
comprehensive income when they also meet the following conditions: The Group's business model for managing
the financial assets is targeted at both the collection of contractual cash flows and the sale of financial assets; the
218Annotations 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 payment
of the principal and the interest based on the outstanding principal amount. For such financial assets fair value is
used for subsequent measurement. The discount or premium is amortized by using the effective interest method and
is recognized as interest income or expenses. Except the impairment losses and the exchange differences of foreign
currency monetary financial assets are recognized as the current profits and losses the changes in the fair value of
such financial assets are recognized as other comprehensive income until the financial assets are derecognized the
accumulated gains or losses are transferred to the current profits and losses. Interest income related to such financial
assets is included in the current profit and loss. Such financial assets are listed as other debt investments other debt
investments due within one year (including one year) from the balance sheet date are listed as non-current assets
due within one year; and other debt investments with time limit within one year (including one year) when acquired
are listed as other current assets.
3) Financial assets measured at fair value and whose changes are included in current gains/losses
Financial assets except for the above-mentioned financial assets measured at amortized cost and financial assets
measured at fair value and whose changes are included in other comprehensive income are classified as financial
assets measured at fair value and whose changes are included in current profits and losses which adopt fair value
for subsequent measurement and all changes in fair value are included in current profits and losses. The Group
classifies non-trading equity instruments as financial assets measured at fair value and whose changes are included
in current profits and losses. Such financial assets are presented as trading financial assets and those expire after
more than one year and are expected to be held for more than one year are presented as other non-current financial
assets.
(3) Devaluation of financial instrument
On the basis of expected credit losses the Group performs impairment treatment on financial assets measured at
amortized cost and financial assets measured at fair value and whose changes are included in other comprehensive
income and recognize the provisions for loss.Credit loss refers to the difference between all contractual cash flows that the Company discounts at the original
actual interest rate and are receivable in accordance with contract and all cash flows expected to be received that
is the present value of all cash shortages. Among them for the purchase or source of financial assets that have
suffered 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 on
credit risk characteristics. When assessing the expected credit losses of receivables they are classified according to
the specific credit risk characteristics as follows:
1) For receivables and contractual assets and lease receivables (including significant financing components and not
including significant financing components) the Group measures the provisions for loss based on the amount of
expected credit losses equivalent to the entire duration. For other receivables our company measures impairment
losses based on whether credit risk has significantly increased since initial recognition. For those that have not
219Annotations 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 12
months is used to measure impairment losses.* Evaluate expected credit losses based on individual items: notes receivable and financial institution credit
receivables (including accepted letters of credit) in accounts receivable related party payments (related parties and
significant 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 other
receivables; Contract assets; Accounts receivable containing significant financing components (i.e. long-term
receivables);.* Evaluating expected credit losses based on customer credit characteristics and aging combinations: In addition
to evaluating expected credit losses based on individual items our company evaluates expected credit losses of
notes receivable accounts receivable and other receivables financial instruments based on customer credit
characteristics and aging combinations. Customer credit characteristics and aging combination: t.The Group considers all reasonable and evidenced information including forward-looking information when
assessing expected credit losses. When there is objective evidence that its customer credit characteristics and
ageing combination cannot reasonably reflect its expected credit loss the current value of the expected future cash
flow is measured by a single item and the cash flow shortage is directly written down the book balance of the
financial asset.
2) Assess the expected credit losses on a case-by-case basis for other assets to which the financial
instruments are impaired such as the loan commitments and financial guarantee contracts that are not measured at
fair value through profit or loss financial assets measured at fair value and whose changes are recognized in other
comprehensive 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: * The contract
rights of collecting cash flow of the financial assets is terminated; * The financial assets has already been
transferred and the Company has transferred almost all risks and remunerations of financial assets ownership to
the transferee; * The financial assets has been transferred even though the Company has neither transferred nor
kept almost all risks and remunerations of financial assets ownership the Company has given up controlling the
financial assets.If the enterprise has neither transferred or kept almost all risks and remunerations of financial assets
ownership nor given up controlling the financial assets then confirm the relevant financial assets according to
how it continues to involve into the transferred financial assets and confirm the relevant liabilities accordingly.The extent of continuing involvement in the transferred financial assets refers to the level of risk arising from the
changes in financial assets value faced by the enterprise.If the entire transfer of financial assets satisfies the demand for derecognition reckon the balance between
the book value of the transferred financial assets and the sum of consideration received from transfer and
220Annotations 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 current
profits and losses.If part transfer of financial assets satisfies the demand for derecognition apportion the integral book value of
the transferred financial assets between the derecognized parts and the parts not yet derecognized according to
each relative fair value and reckon the balance between the sum of consideration received from transfer and
fluctuation accumulated amount of fair value formerly reckoned in other consolidated income that should be
apportioned to the derecognized parts and the apportioned aforementioned carrying amounts in the current profits
and losses.When the Group sells financial assets adopting the mode of recourse or endorses and transfers its financial
assets it is necessary to ensure whether almost all the risks and rewards of ownership of the financial assets have
been transferred. If almost all the risks and rewards of ownership of the financial assets have been transferred to
the transferee the financial assets shall be derecognized; if almost all the risks and rewards of ownership of the
financial assets are retained the financial assets shall not be derecognized; if almost all the risks and rewards of
ownership of the financial assets are neither transferred nor retained continue to judge whether the company
retains control over the assets and conduct accounting treatment according to the principles described in the
preceding paragraphs.
(5) Category and measurement of financial liability
Financial liability is classified into financial liability measured by fair value and with variation reckoned into
current gains/losses and other financial liability at initially measurement. Financial liability shall be initially
recognized and measured at fair value. As for the financial liability measured by fair value and with variation
reckoned into current gains/losses relevant trading costs are directly reckoned into current gains/losses while other
financial liability shall be reckoned into the initial amount recognized.* 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 be
measured at fair value and whose changes are included in current profit or loss at the initial recognition are consistent
with the conditions to be classified as trading financial assets and as financial assets designated to be measured at
fair value and whose changes are included in current profit or loss at the initial recognition. Financial liabilities
measured at fair value and whose changes are included in current profit or loss are subsequently measured at fair
value and the gain or loss arising from changes in fair value and the dividends and interest expense related to these
financial liabilities are included in current profit or loss.* Other financial liability
It must go through the delivery of the derivative financial liabilities settled by the equity instrument to link to
the 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
221Annotations 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 from
derecognition or amortization is included in current profit or loss.* Financial guarantee contract
The financial guarantee contract of a financial liability which is not designated to be measured at fair value
through profit or loss is initially recognized at fair value and its subsequent measurement is carried out by the higher
one 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 amount
determined in accordance with the principle of Accounting Standards for Business Enterprises No. 14—Revenue
from the initial recognition amount.
(6) Termination of recognition of financial liability
The financial liability or part of it can only be terminated for recognized when all or part of the current
obligation of the financial liability has been discharged. The Group (debtor) and the creditor sign an agreement to
replace the existing financial liabilities with new financial liabilities and if the contract terms of the new financial
liabilities are substantially different from the existing financial liabilities terminated for recognized the existing
financial liabilities and at the same time recognize the new financial liabilities. If the financial liability is terminated
for recognized in whole or in part the difference between the carrying amount of the part that terminated for
recognized and the consideration paid (including the transferred non-cash assets or the assumed new financial
liabilities) is included in current profits and losses.
(7) Off-set between the financial assets and liabilities
When the Company has a legal right to offset a recognized financial asset and a financial liability and such
legal right is currently enforceable and the Company plans to settle the financial asset on a net basis or to realize
the financial asset and settle the financial liability simultaneously the financial asset and the financial liability are
presented in the balance sheet at their respective offsetting amounts. In addition the financial assets and financial
liabilities are presented in the balance sheet separately and are not offset against each other.
(8) Derivatives and embedded derivatives
Derivatives are initially measured at fair value on the signing date of the relevant contract and are subsequently
measured at fair value. Except for derivatives that are designated as hedging instruments and are highly effective in
hedging the gains or losses arising from changes in fair value will be determined based on the nature of the hedging
relationship in accordance with the requirements of the hedge accounting and be included in the period of profit and
loss other changes in fair value of derivatives are included in current profits and losses. For a hybrid instrument
that includes an embedded derivative if it is not designated as a financial asset or financial liability measured at fair
value and whose changes are included in current profit or loss the embedded derivative does not have a close
relationship with the main contract in terms of economic characteristics and risks and as with embedded derivatives
222Annotations 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 from
the hybrid instruments and are treated as separate derivative financial instruments. If it is not possible to measure
the embedded derivative separately at the time of acquisition or subsequent balance sheet date the whole hybrid
instrument is designated as a financial asset or financial liability measured at fair value and whose changes are
included 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 deduction
of all liabilities in the Group. The Company issues (including refinancing) repurchases sells or cancels equity
instruments 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 to
equity 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 raw
materials low-value consumption goods and stock goods. Switch-back cost of the current month is adjusted by
distribution price difference at the end of the month the dispatched goods will share the cost differences of inventory
while in settlement the business income; and low-value consumption goods is carried forward at once when being
applied for use 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 provision
for inventory depreciation shall be drawn from the difference between the book cost of a single inventory item and
its net realizable value and the provision for inventory depreciation shall be recorded into the current profit and
loss.
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 distinguishable
commodities 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 to
receive payment as a contract asset.
(2) Determination method and accounting treatment method of expected credit loss of contract assets
For the determination method for expected credit loss of contract assets please refer to the above-mentioned
Accounting treatment methods for financial instrument impairment. The Company calculates the expected credit
223Annotations 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 provision
for 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 shall
recognize 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 been
withdrawn 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 those
that do not fall within the scope of other accounting standards and meet the following conditions at the same time
are recognized as as an asset as the contract performance cost: the cost is directly related to a current or expected
contract including direct labor direct materials manufacturing expenses (or similar expenses) costs clarified to be
borne by the customer and other costs incurred solely due to the contract; this cost increases the Company's future
resources 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 are
expected to be recovered are recognized as the contract acquisition cost as an asset; if the asset amortization period
does not exceed one year it shall be included in the current profit and loss when it occurs. Incremental cost refers
to the cost (such as sales commission etc.) that will not incur if the Company doesn’t obtain the contract. The
Company’s expenses (such as travel expenses incurred regardless of whether the contract is obtained) incurred for
obtaining the contract other than the incremental costs expected to be recovered are included in the current profits
and 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 commodity
income 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 the
impairment loss of other assets related to the contract that are confirmed in accordance with other relevant
accounting standards for business enterprises; then based on the difference between the book value of which is
higher than the remaining consideration that the Company is expected to obtain due to the transfer of the commodity
related to the asset and the estimated cost of transferring the related commodity the excess shall be provided for
impairment and recognized as an asset impairment loss.If the depreciation factors of the previous period changed later causing the aforementioned difference to be
224Annotations 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 included
in the current profit and loss but the book value of the asset after the reversal shall not exceed the book value of the
asset 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 associates
and investment in joint-ventures.For long-term equity investments acquired through business combination under common control the initial
investment cost shall be the acquirer’s share of the carrying amount of net assets of the acquiree as of the
combination date as reflected in the consolidated financial statement of the ultimate controller. If the carrying
amount of net assets of the acquiree as of the combination date is negative the investment cost of long-term equity
investment shall be zero. For long-term equity investment acquired through business combination not under
common control the initial investment cost shall be the combination cost.Excluding the long-term equity investment acquired through business combination there is also a king of long-term
equity investment acquired through cash payment for which the actual payment for the purchase shall be investment
cost; If Long-term equity investments are acquired by issuing equity securities fair value of issuing equity
investment shall be investment cost; for Long-term equity investments which are invested by investors the agreed
price in investment contract or agreement shall be investment cost; and for long-term equity investment which is
acquired through debt reorganization and non-monetary assets exchange regulations of relevant accounting
standards shall be referred to for confirming investment cost.The Company adopts cost method for investment in subsidiaries makes calculation for investments in joint-
ventures and associates by equity method.When calculated by cost method long-term equity investment is priced according to its investment cost and cost
of the investment is adjusted when making additional investment or writing off investment; When calculated by
equity method current investment gains and losses represent the proportion of the net gains and losses realized by
the invested unit in current year attributable to or undertaken by the investor. When the Company is believed to
enjoy proportion of net gains and losses of invested unit gains and losses attributable to the Company according to
its shareholding ratio is to computer out according to the accounting policy and accounting period of the Company
on the basis of the fair value of various recognizable assets of the invested unit as at the date of obtaining of the
investment after offset of gains and losses arising from internal transactions with associates and joint-ventures and
finally to make confirmation after adjustment of net profit of the invested unit. Confirmation on gains and losses
from the long-term equity investment in associates and joint-ventures held by the Company prior to the first
execution day could only stand up with the precedent condition that debit balance of equity investment straightly
amortized according to its original remaining term has already been deducted if the aforementioned balance relating
to the investment do exist.
225Annotations 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 interest
investment the remaining equity interest shall be calculated according to Accounting Standards for Business
Enterprise No.22-Recognition and Measurement of Financial Instrument. Difference between the fair value of the
remaining equity interest as of the date when loss of joint control or significant influence and the carrying value is
included in current gains and losses. Other comprehensive income recognized in respect of the original equity
interest investment under equity method should be treated according to the same basis which the investee adopts to
directly dispose the relevant assets or liabilities when ceasing adoption of equity method calculation; and also
switches to cost method for calculating the long-term equity investments which entitles the Company to have
conduct control over the invested units due to its additional investments; and switches to equity method for
calculating the long-term equity investments which entitles the Company to conduct common control or significant
influence while no control over the invested units due to its additional investments or the long-term equity
investments which entitles the Company with no control over the invested units any longer while with common
control or significant influence.When disposing long-term equity investment the balance between it carrying value and effective price for obtaining
shall be recorded into current investment income. When disposing long-term equity investment which is calculated
by equity method the proportion originally recorded in owners’ equity shall be transferred to current investment
income according to relevant ratio except for that other movements of owners’ equity excluding net gains and losses
of the invested units shall be recorded into owners’ equity
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 expenditure
which is attributable to the assets directly; while cost of self-built investment real estate is formed with all necessary
expenditures occurred before construction completion of the assets arriving at the estimated utilization state.Consequent measurement of investment estate shall be measured by cost method. Depreciation is provided with
average service life method pursuant to the predicted service life and net rate of salvage value. The predicted service
life and net rate of salvage value and annual depreciation are listed as follows:
Predicted rate of salvage Depreciation rate per
Category Depreciation term(Year)
value (%) 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 assets
commencing from the date of such turning. And when self-used real estate turns to be leased out for rental or
additional capital the fixed assets or intangible assets shall switch to investment real estate commencing from the
date of such turning. In situation of switch the carrying value before the switch shall be deemed as the credit value
after the switch.
226Annotations 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 be
predicted to obtain through the disposal the Company shall terminate recognition of such investment real estate.The amount of income from disposal transfer discarding as scrap or damage of investment real estate after
deducting the asset’ s carrying value and relevant taxation shall be written into current gains and losses.
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 than
2000 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 before
the fixed assets arrive at the state of predicted utilization and which could be directly attributable to the assets; while
cost of self-built fixed asset is formed with all necessary expenditures occurred before construction completion of
the assets arriving at the estimated utilization state; credit value of the fixed assets injected by investors is determined
based on the agreed value of investment contracts or agreements while as for the agreed value of investment
contracts or agreements which is not fair it shall take its fair value as credit value; and for fixed assets which are
leased in through finance leasing credit value is the lower of fair value of leased assets and present value of
minimized leasing payment as at the commencing date of leasing.Consequent expenditure related to fixed assets consists of expenditures for repair and update reform. For those
meeting requirements for recognization of fixed assets they would be accounted as fixed asset cost; and for the part
which is replaced recognization of its carrying value shall cease; for those not meeting requirements for
recognization of fixed assets they shall be accounted in current gains and losses as long as they occur. When fixed
asset is disposed or no economic benefit would be predicted to obtain through utilization 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 shall
be written into current gains and losses.The Company withdraws depreciation for all fixed assets except for those which have been fully depreciated
while continuing to use. It adopts average service life method for withdrawing depreciation which is treated
respectively as cost or current expense of relevant assets according to purpose of use. The depreciation term
predicted rate of salvage value and depreciation rate applied to fixed assets of the Company are as follows:
Predicted rate of salvage Depreciation rate per
No. Category Depreciation term
value 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%
227Annotations 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)Predicted rate of salvage Depreciation rate per
No. Category Depreciation term
value 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 and
depreciation 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 fixed
assets according to the estimated value based on the construction budget cost or actual construction cost and
depreciation will be accrued from the next month and the difference in the original value of fixed assets shall be
adjusted 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 and
inventory which require more than one year of purchase construction or production activities to reach the intended
usable or saleable state the capitalization begins when the asset expenditure has occurred the borrowing expense
have occurred and the acquisition construction or production activities necessary to make the asset reach the
intended usable or saleable state have begun; when the acquisition construction or production of assets that meet
the capitalization conditions reaches the intended usable or saleable state stop the capitalization the borrowing
expense incurred thereafter are included in the current profit and loss. If an asset that meets the capitalization
conditions is abnormally interrupted during the acquisition construction or production process and the interruption
lasts 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 current
period after deduction of the interest income arising from unutilized borrowing capital which is saved in banks or
deduction of investment income obtained from temporary investment; For recognization of capitalized amount of
common borrowing it equals to the weighted average of the assets whose accumulated expense or capital disburse
is more than common borrowing times capitalization rate of occupied common borrowing. Capitalization rate is
determined according to weighted average interest rate of common borrowing.
20. Right-of-use assets
Upon becoming a lessee under a lease contract the Company is entitled to receive substantially all of the economic
benefits 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 to
recognized the depreciation and interest expenses respectively when the use of the identified assets dominates
during that period of use.
228Annotations 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 a
purchase 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 a
straight-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 actual
cost based on the price actually paid and related other expenditure; the actual cost of an intangible asset invested by
an investor is determined at the value agreed in the investment contract or agreement except where the agreed value
in the contract or agreement is not fair in which case the actual cost is determined at fair value.The Company analyzes and judges the service life of intangible assets when acquiring them. Intangible assets with
definite service life such as land use rights are amortized by the straight-line method during the service life from
the 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. Intangible
assets with uncertain service life shall not be amortized. Intangible assets developed by the Company shall be
generally amortized on an average of 3-5 years according to the benefit period of the results of the project recognized
in advance.The service life and amortization method of intangible assets with limited service life shall be reviewed at the end
of the year. If the estimated service life and amortization method of intangible assets are different from those
previously estimated the amortization period and amortization method shall be changed. The service life of
intangible 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 after
the recheck it will be regarded as the change of accounting estimate.
(2) Collection scope of R&D expenditure and related accounting treatment methods
The 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 stage
expenditure according to its nature and whether there is great uncertainty in the final formation of intangible assets
from 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 same
time: (1) It is technically feasible to complete the intangible assets so that they can be used or sold; (2) It has the
intention to complete the intangible assets and use or sell them; (3) The products produced by using the intangible
assets 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
229Annotations 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 reliably
measured.-Expenditure attributable to development of the intangible assets could be reliable measured.Expenditure arising during development not satisfying the above conditions shall be recorded in current gains
and losses upon occurrence. Development expenditure which had been recorded in gains and losses in previous
period would not be recognized as assets in later period. Expenditure arising during development phase which has
been starting capitalization is listed in balance sheet as development expenditure and transferred to intangible assets
since the project reaches at predicted utilization state.
22. Impairment of long-term assets
As at each balance sheet date the Company has inspection on fixed assets construction in process and intangible
assets with limited service life. When the following indications appear assets may be impaired and the Company
would have impairment test. As for goodwill and intangible assets which have uncertain service life no matter there
is impairment or not impairment test shall be conducted at the end of every year. If it is hard to make test on
recoverable amount of single asset test is expected to make on the basis of the assets group or assets group portfolio
where such asset belongs to.Indications for impairment are as follows:
(1) Market value of asset drops a lot in current period the drop scope is obviously greater than the predicted
drop due to move-on of times or normal utilization;
(2) Economy technology or law environment where enterprise operates or market where asset is located will
have significant change in current or recent periods which brings negative influence to enterprise;
(3) Market interest rate or returning rate of other market investments have risen in current period which brings
influence in calculating discount rate of present value of predicted future cash flow of assets which leads to a great
drop in recoverable amount of such assets;
(4) Evidence proving that asset is obsolete and out of time or its entity has been damaged;
(5) Asset has been or will be keep aside terminating utilization or disposed advance;
(6) Internal report of enterprise shows that economic performance of asset has been or will be lower than
prediction such as that net cash flow created by asset or operation profit (or loss) realized by asset is 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 is
recognized as impairment loss. As long as impairment loss of the aforementioned assets is recognized it couldn’t
be switched back in later accounting periods. Recoverable amount of assets refers to the higher of fair value of
assets net disposal expense and present value of predicted cash flow of the asset.
23. Contract liability
Contract liabilities reflect the Company's obligation to transfer goods to customers for consideration received or
receivable from customers. Before the Company transfers the goods to the customer if the customer has paid the
230Annotations 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 actual
payment by the customer and the payment due.
24. Goodwill
Goodwill represents balance between equity investment cost or business combination cost under no common
control exceeding the attributable part or fair value of recognizable net assets of party invested or purchased
(obtained through business combination) as of acquisition day or purchase day.Goodwill relating to subsidiaries is separately listed in consolidated financial statement. And goodwill relating to
associates and joint-ventures is included in carrying value of long-term equity investment.
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 the
current period and future periods with an amortization period of more than one year (excluding one year) and these
expenses are amortized evenly during the benefit period. If the long-term deferred expense item cannot benefit the
future accounting period all the amortized value of the item that has not been amortized will be transferred into the
current profit and loss.
26. Staff remuneration
Employee benefits mainly include all kinds of remuneration incurred in exchange for services rendered by
employees or compensation to the termination of employment relationship such as short-term wages post-
employment benefits compensation for the termination of employment relationship and other long-term employee
welfare.Short-term remuneration includes: staff salary bonus allowances and subsidies staff benefits social insurances
like medical insurance work-related injury insurance and maternity insurance housing fund labor union funds and
staff education funds short-term paid absence of duty short-term profit sharing scheme and non-monetary benefits
as well as other short-term remuneration. During the accounting period when staff provides services the short-term
remuneration actually occurred is recognized as liabilities and shall be included in current gains and losses or related
asset costs according to the beneficial items.Retirement benefits mainly consist of basic pension insurance unemployment insurance and early-retirement
benefits etc. retirement benefit scheme represents the agreement reached by the Company and its employees in
respect of retirement benefits or the rules or regulations established by the Company for providing retirement
benefits to employees. In particular defined contribution plan means a retirement benefit plan pursuant to which
the Company makes fixed contribution to independent fund upon which and it is not obliged to make further
231Annotations 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 staff
and workers to accept the reduction voluntarily. The employees make applications voluntarily the two parties sign
the compensation agreement after approved by the Company and calculate the compensation amount according to
the compensation standard passed by the staff representative conference and the Company confirms it as dismiss
welfare and reckons it in current profits and losses. As the Company promises to adjust the treatment for early
retiring staff and workers with the increase of social basic cost of living allowances the discount elements will not
be 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 at
the present value of the unpaid lease payments net of lease incentives (except for short-term leases and leases of
low-value assets for which simplified treatment is elected) when it is entitled to receive substantially all of the
economic benefits arising from the use of the identified asset during the period of use and is entitled to dominate
the 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 acceptance
bill 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 the
obligation is reliably measurable.
29. Special reserve
The work safety expense extracted according to the regulations will be included in the cost of related products or
the current profit and loss and also included in the special reserve; When used it will be treated separately according
to 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 when
the predetermined usable state is reached and at the same time the equivalent special reserve shall be offset and
the 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 and
revenue from assignment of asset use rights.The Company has fulfilled the performance obligations in the contract that is revenue is recognized when the
customer obtains control of the relevant goods or services.If the contract contains two or more performance obligations the Company will allocate the transaction price to
each individual performance obligation according to the relative proportion of the stand-alone selling price of the
232Annotations 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 is
measured according to the transaction price of each individual performance obligation.The transaction price is the amount of consideration that the Company expects to be entitled to receive due to the
transfer of goods or services to customers excluding payments on behalf of third parties. The transaction price
confirmed by the Company does not exceed the amount at which the cumulatively recognized revenue will most
likely not to undergo a significant switch back when the relevant uncertainty is eliminated. The money expected to
be returned to the customer will be regarded as a return liability and not included in the transaction price. If there is
a significant financing component in the contract the Company shall determine the transaction price based on the
amount 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 effective
interest method during the contract period. On the starting date of the contract if the Company expects that the
interval between the customer's acquisition of control of the goods or services and the customer's payment of the
price 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 a
certain period of time otherwise it is to perform its performance obligations at a certain point in time:
1) The customer obtains and consumes the economic benefits brought by the Company's performance at the same
time as the Company's performance;
2) Customers can control the products under construction during the performance of the Company;
3) The goods produced by the Company during the performance of the contract have irreplaceable uses and the
Company has the right to collect payment for the accumulated performance part of the contract during the entire
contract period.For performance obligations performed within a certain period of time the Company recognizes revenue in
accordance with the performance progress during that period and determine the progress of performance in
accordance with the output method. When the performance progress cannot be reasonably determined if the cost
incurred by the Company is expected to be compensated the revenue shall be recognized according to the amount
of the cost incurred until the performance progress can be reasonably determined.For performance obligations performed at a certain point in time the Company recognizes revenue at the point
when the customer obtains control of the relevant goods or services. When judging whether a customer has obtained
control of goods or services the Company will consider the following signs:
1) The Company has the current right to collect payment for the goods or services;
2) The Company has transferred the goods in kind to the customer;
3) The Company has physically transferred the goods to the customer;
233Annotations 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. Of
which asset-related government subsidy are government subsidy acquired by the Company for the acquisition or
other formation of long-term assets; government subsidy related to revenue are government subsidy other than those
related to assets. If the government document does not clearly specify the subsidy object the Company will judge
according to the above-mentioned distinguishing principle. If it is difficult to distinguish it will be overall classified
as a government subsidy related to income.If government subsidies are monetary assets they are measured according to the amount actually received. For
subsidies paid on the basis of a fixed quota standard when there is conclusive evidence at the end of the year that
it can meet the relevant conditions stipulated by the financial support policy and is expected to receive financial
support funds they are measured according to the amount receivable. If the government subsidy is a non-monetary
asset it shall be measured at its fair value when the fair value cannot be obtained reliably it shall be measured at
its nominal amount (1 yuan).Government subsidies related to assets are recognized as deferred income. Asset-related government subsidies that
are recognized as deferred income are included in the current profit and loss in installments according to the average
life method during the useful life of the relevant assets.If the relevant asset is sold transferred scrapped or damaged before the end of its useful life the undistributed
deferred 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 for
the carry forward of unused deductible losses that it is probable that future taxable profits will be available against
which 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 initial
recognition of assets and liabilities occurred in the transaction related to non-business combination which neither
affect accounting profit nor taxable income (or deductible losses) no corresponding deferred income tax assets and
deferred income tax liabilities will be recognized. As of the balance sheet date deferred income tax assets and
deferred income tax liabilities are measured at the effective tax rate applicable to the period when recovery of assets
or settlement of liabilities occur.The Company recognizes deferred income tax assets to the extent of future taxable income tax which is likely to be
obtained to offset deductible temporary difference deductible losses and tax credits. For the confirmed deferred
234Annotations 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 benefits
arising from the use of the identified assets during the period of use and has the right to lead the use of the identified
assets during the period of use the present value of unpaid lease payments of the lease assets after deducting lease
incentives (except for short-term leases and leases of low-value assets for which simplified treatment is selected) is
recognized as a lease liability and a right-of-use asset is recognized based on the sum of the present value of the
lease 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 a
purchase 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 a
straight-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 finance
lease at the lease commencement date. A finance lease is a lease that transfers substantially all the risks and rewards
associated with the ownership of an asset. Operating leases are leases other than finance leases. Rentals under
operating leases are recognized as income on a straight-line basis over the lease term. Finance leases are recorded
at the net lease investment value of the finance lease receivable which is the sum of the unguaranteed residual value
and 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 is
financially accounted according to the lease standards. There are both leasing and non-leasing businesses in the
contract and cannot be split and the entire contract is included in the lease business for financial accounting
according 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 be
recognized separately if it meets the recognition conditions of a single lease; if it does not meet the recognition of a
single leasing business or there is a major event or change within the controllable range of the lessee re-evaluate
and measure the present value of lease liabilities and adjust the book value of the right-of-use asset accordingly. If
the book value of the right-of-use asset has been reduced to zero but the lease liability still needs to be further
reduced 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 lease
on the start date of lease. A finance lease is a lease that transfers substantially all the risks and rewards associated
with ownership of an asset. An operating lease refers to a lease other than finance leases. The rent of an operating
lease is recognized as income on a straight-line basis during the lease term. For an finance lease the net investment
in the lease is regarded as the entry value of the finance lease receivables and the net investment in the lease is the
sum of the unguaranteed residual value and the present value of the lease receipts that have not been received on
the start date of the lease term.
235Annotations 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 include
income tax in the current year and deferred income tax. The income tax associated with the events and transactions
directly included in the owners’ equity shall be included in the owners’ equity; and the deferred income tax derived
from business combination shall be included in the carrying amount of goodwill except for that above the income
tax expense shall be included in the profit or loss in the current period.The income tax expense in the current year refers to the tax payable which is calculated according tothe tax laws
on the events and transactions incurred in the current period. The deferred income tax refersto the difference
between the carrying amount and the deferred tax assets and deferred tax liabilities at Current Year-end recognized
in the method of debit in the balance sheet.
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 among
the segments will recognize based on the market price common costs will allocated by income proportion between
segments 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 financial
statement which will affect the application of accounting policy and amounts of assets liabilities income and
expense. The actual condition may differ from the estimation. Constant evaluation is conducted by the management
in respect of the key assumption involved in the estimation and judgment of uncertainties. Effect resulting from
change of accounting estimation is recognized in the period the change occurs and future periods.The following accounting estimation and key assumption may result in material adjustment to the book value
of 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 realizable
value lower than the cost of inventories. The net realizable value of the inventory of goods that are directly used for
sale such as the goods in stock the goods sent out and the materials for sale and the low-consumption goods shall
be determined by the amount of the estimated selling price of the inventory minus the estimated selling expenses
and relevant taxes. The net realizable value of the material inventory held for production is determined by the
amount of the estimated selling price of the finished product produced minus the estimated cost to be incurred at
the time of completion the estimated selling expenses and relevant taxes.
236Annotations 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 have
impairment indication and long-term assets such as goodwill as at the balance sheet date. The recoverable amount
of relevant assets and assets group shall be the present value of the projected future cash flow which shall be
calculated with accounting estimation.If the management amends the gross profit margin and discount rate adopted in calculation of future cash flow of
assets and assets group and the amended gross profit margin is lower than the currently adopted one or the amended
discount rate is higher than the currently adopted one the Company needs to increase provision of impairment
provision. If the actual gross profit margin is higher (or the discount rate is lower) than the estimation of management
the Company can not transfer back the long term assets 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 each
future year. Realization of deferred income tax assets depends on whether a company is able to obtain sufficient
taxable income in future. Change of future tax rate and switch back of temporary difference could affect the balance
of income tax expense (gains) and deferred income tax. Change of the aforesaid estimation may result in material
adjustment to deferred income tax.
(4) Usable term and residual value rate of fixed assets and intangible assets
The Company at least at the end of each accounting year reviews the projected usable life and residual value rate
of fixed assets and intangible assets. The projected usable life and residual value rate are determined by the
management based on the historical experiences of similar assets by reference to the estimation generally used by
the same industry with consideration on projected technical upgrade. If material change occurs to previous
estimation the Company shall accordingly adjust the depreciation expenses and amortization expenses for future
period.
37. Other comprehensive income
Other comprehensive income represents various gains and losses not recognized in current gains and losses
according to other accounting rules.Other comprehensive income items shall be reported in the following two classes under other relevant accounting
rules:
(1)Other comprehensive income items that can not be reclassified into gains and losses in future accounting periods
mainly including changes arising from re-measurement of net liabilities or net assets under defined benefit plan and
interest in investee’s other comprehensive income which are measured under equity method and which can not be
reclassified into gains and losses in future accounting periods;
(2) Other comprehensive income items that will be reclassified into gains and losses in future accounting periods
237Annotations 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 is
reclassified into profit and loss when the investee’s subsequent accounting periods are accounted for in accordance
with the equity method and meet the specified conditions the fair value changes occurred by the debt investment
that is measured at fair value and whose changes are included in other comprehensive income the difference
between the original book value included in other comprehensive income and the fair value when a financial asset
measured at amortized cost is reclassified as a financial asset measured at fair value and its changes are included in
other comprehensive income the loss provisions for financial assets measured at fair value and whose changes are
included in other comprehensive income the gains or losses generated from cash flow hedging instruments are part
of 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 Relevant accounting policy changes have
"Deferred income tax related to assets and liabilities arising from a single been approved at the 32nd meeting of the
transaction is not applicable to the accounting treatment of initial recognition 10th Board of Directors of the Company
exemption".The names and amounts of the report items that are significantly affected are as follows:
Consolidated statement Parent company statement
2022-12-312022-12-31
Affected items Adjustment 2023-1-1 Adjustment 2023-1-1
(before (before
amount (after change) amount (after change)
change) change)
Deferred income
156630537.434935157.87161565695.30125037558.042683181.79127720739.83
tax assets
Deferred income
12750747.304758755.7817509503.088642999.012510986.8411153985.85
tax liabilities
Surplus public 441201471.98 17219.50 441218691.48 440983306.30 17219.50 441000525.80
Undistributed 1064136866.9 1064291842.4
909082037.66167328.13909249365.79154975.45
profit 8 3
Minority equity 370748395.26 -8145.54 370740249.72
(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%
238Annotations 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
Turnover tax 2%
surcharge
Corporate income tax Taxable income 15%20%22%29%30%
Original Book value of house property×(1-30%)or
House Property Tax 1.2% or 12%
annual rent income
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 INDONESIAPT 22%
2. Preferential tax
（1）On August 17 2020 the company obtained the high-tech enterprise certificate numbered GR202034000222
approved by the Anhui Provincial Department of Science and Technology Anhui Provincial Department of Finance
and Anhui Provincial Taxation Bureau of the State Administration of Taxation and enjoys 15% rate for the income
tax for State Hi-Tech Enterprise for three years term. On November 30 2023 the Company obtained the certificate
of high-tech enterprise with the number GR2020340006385 through the identification of high-tech enterprises and
239Annotations 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-tech
enterprise certificate numbered GR202034000072 approved 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 income tax for State Hi-Tech Enterprise for three years
term. On October 16 2023 it obtained the certificate of high-tech enterprise with the number GR202334003036
approved by the Department of Science and Technology of Anhui Province Anhui Provincial Department of
Finance and the Anhui Provincial Taxation Service State Taxation Administration and continued to enjoy the
enterprise 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 in
2020'' published by the Office of the National High-tech Enterprise Certification Management Leading Group and
continues 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 the
high-tech enterprise certificate with certificate number GR202344012950 approved by the Guangdong Provincial
Department of Science and Technology Guangdong Provincial Department of Finance and Guangdong Provincial
Taxation Bureau of the State Administration of Taxation. We will continue to enjoy a 15% corporate income tax rate
for 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 Industrial
Structure Adjustment Guidance Catalog and enjoys the preferential taxation policy of corporate income tax for the
Western Development and the corporate income tax is levied at a reduced tax rate of 15% valid until December
312030.
(5) The subsidiary Guangdong Changhong Meiling Ridian Technology Co. Ltd. has passed the qualification
of 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 the
qualification of 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.
(7) The subsidiary Hefei Meiling Nonferrous Metal Products Co. Ltd. has passed the qualification of high-tech
enterprise certification on 18 September 2021 and enjoys 15% rate for the income tax for State Hi-Tech Enterprise
for three years term.
(8) The subsidiary Jiangxi Meiling Electric Appliance Co. Ltd. has passed the qualification of high-tech
enterprise certification on 4 November 2022 and enjoys 15% rate for the income tax for State Hi-Tech Enterprise
for three years term.
(9) The subsidiary Sichuan Changhong Air-conditioner Co. Ltd. has passed the qualification of high-tech
240Annotations 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 technology
enterprise for three years term.
(10) The subsidiary Anhui Tuoxing Technology Co. Ltd. Anhui Ling’an Medical Equipment Co. Ltd. Hefei
Meiling 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 State
Administration of Taxation and temporarily implements below policies: the part of annual taxable income that does
not exceed one million yuan is included in taxable income by 25% after a reduction and corporate income tax is
paid at a tax rate of 20% valid until December 31 2024; while the part of annual taxable income exceeds one
million yuan but not exceeding three million yuan is included in taxable income by 25% after a reduction and
corporate 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-tech
enterprise certification on 18 September 2021 and enjoys 15% income tax rate for national payroll technology
eenterprises 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 technology
eenterprise for three years term.V. Notes to the major items in the consolidated f inancial statements
With 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 12727.56 21243.42
Bank deposit 4160096314.60 3141070623.60
Other monetary fund 425569359.11 720140385.24
Interest receivable on deposit 4255007124.44 2978189526.87
Total 8840685525.71 6839421779.13
Total amount deposited in overseas 25902580.15 9295065.32
2. Tradable financial assets
Item Balance at year-end Balance at year-begin
Financial assets measured at fair value and whose changes are included
39236447.6357660588.67
in current gains/losses
Including: Derivative financial assets 39236447.63 57660588.67
241Annotations 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 228500.00
Trade acceptance 38674.50
Total 267174.50
(2) By accrual of bad debt provision
Balance at year-end
Category Book balance Bad debt provision
Book value
Amount Ratio (%) Amount Ratio (%)
With bad debt provision
267174.50100.00267174.50
accrual on single item
Including: Bank acceptance 228500.00 85.52 228500.00
Trade acceptance 38674.50 14.48 38674.50
Total 267174.50 100.00 267174.50
1) Note receivable withdrawal bad debt provision on single item
Balance at year-begin Balance at year-end
Bad
Name Book Bad debt debt Provision
Book balance Provision reason
balance provision provisi ratio (%)
on
Minimal risk holding maturity
Bank acceptance 228500.00
acceptance
Minimal risk holding maturity
Trade acceptance 38674.50
acceptance
Total 267174.50 — —
(2) Bad debt provision of note receivable that has been accrued withdrawn and reversed this year
N/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 the
balance sheet date
Amount to be derecognized at the end Amount not derecognized at the end of
Item
of the year the year
Trade acceptance 38674.50
Total 38674.50
242Annotations 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） 1629505172.78 1253020874.80
Including：
Within 3 months (3 months included) 1441654287.27 839113924.70
More than 3 months and less than 6 months (6
140150202.58319861920.01
months included)
Over 6 months and within one year (One year
47700682.9394045030.09
included)
Over one year - within 2 years (2 years included) 131340766.08 241992516.95
Over 2 years - within 3 years (3 years included) 154167214.15 32346833.25
Over 3 years 53619387.00 38203610.15
Total 1968632540.01 1565563835.15
(2) Category of account receivable by bad debt accrual
Amount at year-end
Book balance Bad debt provision
Category
Ratio Ratio Book value
Amount Amount
(%)(%)
Account receivable that withdrawal
682942277.4834.69195578324.8428.64487363952.64
bad debt provision by single item
Including: current payment with
545656729.9027.72154606151.9828.33391050577.92
related party
Account receivable with letter of
83951301.014.2683951301.01
credit
Account receivable with single minor
amount but withdrawal single item 53334246.57 2.71 40972172.86 76.82 12362073.71
bad debt provision
Account receivable withdrawal bad
1285690262.5365.31139347326.1110.841146342936.42
debt provision by portfolio
Including: account receivable of
212621463.4510.8044910916.5021.12167710546.95
engineering customers
Receivables other than engineering
1073068799.0854.5194436409.618.80978632389.47
customers
Total 1968632540.01 100.00 334925650.95 17.01 1633706889.06
Continued
243Annotations 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)Amount at year-begin
Book balance Bad debt provision
Category
Ratio Ratio Book value
Amount Amount
(%)(%)
Account receivable that withdrawal
781312227.1849.90140035432.6017.92641276794.58
bad debt provision by single item
Including: current payment with
651212122.1441.60111191911.6517.07540020210.49
related party
Account receivable with letter of
70940571.454.5370940571.45
credit
Account receivable with single minor
amount but withdrawal single item 59159533.59 3.77 28843520.95 48.76 30316012.64
bad debt provision
Account receivable withdrawal bad
784251607.9750.10118656456.7015.13665595151.27
debt provision by portfolio
Including: account receivable of
201410848.7012.8724773169.6412.30176637679.06
engineering customers
Receivables other than engineering
582840759.2737.2393883287.0616.11488957472.21
customers
Total 1565563835.15 100.00 258691889.30 16.52 1306871945.85
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 single
receivables and withdrawal bad debt provision by combination shows no risk characteristic of the receivables 96
clients involved.
2) Account receivable withdrawal bad debt provision by portfolio
A.Account receivable of engineering customers
Balance at year-end
Account age
Book balance Bad debt provision Provision ratio (%)
Within 3 months (3 months included) 33502386.39
More than 3 months and less than 6 months (6
29638184.67
months included)
Over 6 months and within one year (One year
29724507.75
included)
Over one year - within 2 years (2 years included) 71526399.70 14305279.94 20.00
Over 2 years - within 3 years (3 years included) 35248696.77 17624348.39 50.00
Over 3 years 12981288.17 12981288.17 100.00
Total 212621463.45 44910916.50 —
Continued
244Annotations 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)Balance at year-begin
Account age
Book balance Bad debt provision Provision ratio (%)
Within 3 months (3 months included) 46445327.67
More than 3 months and less than 6 months (6
18955344.03
months included)
Over 6 months and within one year (One year
42492137.30
included)
Over one year - within 2 years (2 years included) 73286167.38 14657233.48 20.00
Over 2 years - within 3 years (3 years included) 20231872.32 10115936.16 50.00
Over 3 years 100.00
Total 201410848.70 24773169.64
B.Receivables other than engineering customers
Balance at year-end
Account age
Book balance Bad debt provision Provision ratio (%)
Within 3 months (3 months included) 923822329.93 9238223.30 1.00
More than 3 months and less than 6 months (6
41778451.314177845.1310.00
months included)
Over 6 months and within one year (One year
9463055.001892611.0020.00
included)
Over one year - within 2 years (2 years included) 2723777.86 1361888.93 50.00
Over 2 years - within 3 years (3 years included) 87576718.61 70061374.88 80.00
Over 3 years 7704466.37 7704466.37 100.00
Total 1073068799.08 94436409.61 —
Continued
Balance at year-begin
Account age
Book balance Bad debt provision Provision ratio (%)
Within 3 months (3 months included) 388904609.29 3889046.09 1.00
More than 3 months and less than 6 months (6
27600654.772760065.4810.00
months included)
Over 6 months and within one year (One year
11098413.192219682.6420.00
included)
Over one year - within 2 years (2 years included) 136495488.03 68247744.02 50.00
Over 2 years - within 3 years (3 years included) 9874225.80 7899380.64 80.00
Over 3 years 8867368.19 8867368.19 100.00
Total 582840759.27 93883287.06 —
245Annotations 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
Changes this year
Balance at Balance at year-
Category Withdrawal or Resale or Other
year-begin Accrual end
reversal write-off decreases
Bad debt
258691889.3086947228.495404101.293092614.562216750.99334925650.95
provision
Total 258691889.30 86947228.49 5404101.29 3092614.56 2216750.99 334925650.95
(4) Account receivable actually written-off in Current Year
Item Written-off amount
Account receivable actually written-off 3092614.56
(5) Top five receivables collected by arrears party amounting to 572545992.76 yuan in total accounted for
28.88% of the receivables of current year-end the bad debt provision accrual correspondingly amounting to
181259573.75 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 1641858740.34 1446358719.88
Total 1641858740.34 1446358719.88
(2)Receivable financing is classified and listed by bad debt accrual method
Amount at year-end
Book balance Bad debt provision
Category
Ratio Ratio Book value
Amount Amount
(%)(%)
Withdrawal bad debt provision by 1641858740.34 100.00 1641858740.34
single item
Including：Bank acceptance 1641858740.34 100.00 1641858740.34
Total 1641858740.34 100.00 1641858740.34
Continued
Balance at year-begin
Book balance Bad debt provision
Category
Ratio Ratio Book value
Amount Amount
(%)(%)
Withdrawal bad debt provision by
1446358719.88100.001446358719.88
single item
246Annotations 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)Balance at year-begin
Book balance Bad debt provision
Category
Ratio Ratio Book value
Amount Amount
(%)(%)
Including：Bank acceptance 1446358719.88 100.00 1446358719.88
Total 1446358719.88 100.00 1446358719.88
（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 997291535.93
Note: with purpose of improving the note utilization the Company draw up bank acceptance by pledge parts of
the outstanding notes receivable to the bank. For details of the pledge of bills receivable see Note V. 24. Assets
with restricted ownership or use rights.
(5) Notes endorsement or discount and undue on balance sheet date listed in receivables financing at the end of
the year
Amount derecognition at year- Amount without
Item
end derecognition at year-end
Bank acceptance 873061985.45
Total 873061985.45
6. Accounts paid in advance
(1) Age of account paid in advance
Balance at year-end Balance at year-begin
Item
Amount Ratio (%) Amount Ratio (%)
Within one year 43288908.76 94.64 39700777.69 86.57
1-2 years 811122.73 1.77 5042628.29 11.00
2-3 years 707919.39 1.55 1116085.57 2.43
Over 3 years 930855.02 2.04
Total 45738805.90 100.00 45859491.55 100.00
(2) Top 5 of account paid in advance in balance at year-end amounting to 30421376.72 yuan accounted for
66.51% of the account.
7. Other account receivable
Item Balance at year-end Balance at year-begin
Other account receivable 82953808.97 88354803.24
247Annotations 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 82953808.97 88354803.24
(1) Category of other account receivable
Nature Book balance at year-end Book balance at year-begin
Export rebate 41300752.20 13304094.59
Cash deposit 20927726.52 53876630.71
Loans of employee’s pretty cash 20970369.96 19142320.86
Related party not in consolidation statement 619414.34 716725.90
Advance money temporary 707676.06 3122122.93
Other 1488175.37 1174866.78
Total 86014114.45 91336761.77
(2) By account age
Account age Balance at year-end Balance at year-begin
Within 1 year（Including 1 year） 74641189.07 44978802.65
Including：
Within 3 months (3 months included) 60732006.02 32703626.46
More than 3 months and less than 6 months (6
1842273.093033052.73
months included)
Over 6 months and within one year (One year
12066909.969242123.46
included)
Over one year - within 2 years (2 years
3017092.4316985265.38
included)
Over 2 years - within 3 years (3 years included) 2473240.42 22359916.12
Over 3 years 5882592.53 7012777.62
Total 86014114.45 91336761.77
(3) Category of Other account receivable bad debt reserves
Amount at year-end
Book balance Bad debt provision
Category
Ratio Book value
Amount Amount Ratio (%)
(%)
That withdrawal bad debt provision by
85698646.4399.632945873.363.4482752773.07
single item
In which: other receivables with no major 43778479.89 50.90 2945873.36 6.73 40832606.53
248Annotations 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)Amount at year-end
Book balance Bad debt provision
Category
Ratio Book value
Amount Amount Ratio (%)
(%)
individual amount but bad debt provision
accrued individually
Export tax refund 41300752.20 48.01 41300752.20
Related party funds 619414.34 0.72 619414.34
Bad debt provision accrued by portfolio 315468.02 0.37 114432.12 36.27 201035.90
In which: other receivables accrued by
315468.020.37114432.1236.27201035.90
aging portfolio
Total 86014114.45 100.00 3060305.48 3.56 82953808.97
Continued
Balance at year-begin
Book balance Bad debt provision
Category
Ratio Ratio Book value
Amount Amount
(%)(%)
That withdrawal bad debt provision by
90992381.8499.622915104.373.2088077277.47
single item
accrued individually 13304094.59 14.57 13304094.59
Related party funds 716725.90 0.78 716725.90
Bad debt provision accrued by portfolio 344379.93 0.38 66854.16 19.41 277525.77
In which: other receivables accrued by
344379.930.3866854.1619.41277525.77
aging portfolio
Total 91336761.77 100.00 2981958.53 3.26 88354803.24
1) Accrual of bad debt provision for other receivables
First stage Second stage Third stage
Expected Expected credit loss
Expected credit loss
Bad debt provision credit loss in for the whole duration Total
for the whole duration
next 12 (credit impairment has
(no credit impairment)
months occurred)
Balance as at 1 Jan. 2023 1690724.90 1291233.63 2981958.53
Book balance of other account
receivable in Current Year as at — — — —
1 Jan. 2023
--Transfer to the second stage
249Annotations 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)First stage Second stage Third stage
Expected Expected credit loss
Expected credit loss
Bad debt provision credit loss in for the whole duration Total
for the whole duration
next 12 (credit impairment has
(no credit impairment)
months occurred)
-- Transfer to the third stage -1188850.00 1188850.00
-- Reversal to the second stage
-- Reversal to the first stage
Provision in Current Year 181.49 22779.94 1456556.15 1479517.58
Reversal in Current Year 88570.63 88570.63
Conversion in Current Year
Write off in Current Year
Other change 377600.00 935000.00 1312600.00
Balance as at 31 Dec. 2023 181.49 58484.21 3001639.78 3060305.48
（4）Bad debt provision for other receivables accrued recovered or reversed this year
Amount of change this year
Category Year-beginning Recovery or Write-off or Year-end
Accrual Other
reversal cancellation
Bad debt
2981958.531479517.5888570.631312600.003060305.48
provision
Total 2981958.53 1479517.58 88570.63 1312600.00 3060305.48
（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
Proportion in Bad debt
total other provision
Name Nature Balance at year-end Account age receivables Balance
ending at year-
balance (%) end
Unit I Tax rebate 41179511.61 Within 1 year 47.88
Unit II Cash deposit 10000000.00 Within 1 year 11.63
Within 1 year 2-3
Unit III Cash deposit 2639979.48 3.07
years Over 3 years
Unit IV Cash deposit 2490621.17 Within 1 year 2.90
Unit V Cash deposit 2324874.66 Within 1 year 2.70
250Annotations 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)Proportion in Bad debt
total other provision
Name Nature Balance at year-end Account age receivables Balance
ending at year-
balance (%) end
Total 58634986.92 68.18
（7）There are no other receivables reported due to centralized management of funds.
8. Inventories
(1) Classification of inventories
Amount at year-end
Inventory price decline
Item provision/contract
Book balance Book value
performance cost
impairment provision
Raw materials 150806222.67 4061217.23 146745005.44
Stock commodities 1216300557.72 60027642.16 1156272915.56
Low value consumable articles 3141564.20 143306.82 2998257.38
Goods in transit 641198998.83 7934263.70 633264735.13
Goods-in-process 7337268.01 7337268.01
Contract performance cost 28988664.67 28988664.67
Deferred expense for mould 47131566.78 47131566.78
Total 2094904842.88 72166429.91 2022738412.97
Continued
Amount at year-begin
Inventory price decline
Item provision/contract
Book balance Book value
performance cost
impairment provision
Raw materials 174848711.84 6676011.97 168172699.87
Stock commodities 938676768.88 48374183.50 890302585.38
Low value consumable articles 2653770.39 871871.72 1781898.67
Goods in transit 578924325.36 6074817.77 572849507.59
Goods-in-process 7901880.53 7901880.53
Contract performance cost 41622651.08 41622651.08
Deferred expense for mould 27675710.59 27675710.59
Total 1772303818.67 61996884.96 1710306933.71
251Annotations 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
Increase this year Decrease this year
Amount at year- Amount at year-
Item Reversal or
begin Accrual Other Other end
reselling
Raw materials 6676011.97 2262820.96 4877615.70 4061217.23
Stock
48374183.5032786974.123372.3721136887.8360027642.16
commodities
Goods in transit 6074817.77 6482986.09 4623540.16 7934263.70
Low value
consumable 871871.72 275.02 728839.92 143306.82
articles
Total 61996884.96 41533056.19 3372.37 31366883.61 72166429.91
(3) Accrual for inventory falling price reserves
Reasons for the reversal or
Item Specific basis for determining of net realizable value
reselling in Current Year
Cost is higher than net realizable value (The processed products are
Raw materials For production
decline)
Stock Cost is higher than net realizable value (The market price at period-end
For sale
commodities fell)
Cost is higher than net realizable value (The market price at period-end
Goods in transit For sale
fell)
Low value
consumable Cost is higher than net realizable value Already used
articles
Contract Engineering construction Cost is higher than net realizable value (The
Already used
performance cost processed products are decline)
9. Contract assets
(1) Contract assets
Ending balance Opening balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Warranty 13879087.90 617397.28 13261690.62 4301610.03 770687.90 3530922.13
Total 13879087.90 617397.28 13261690.62 4301610.03 770687.90 3530922.13
(2)Amount and reasons for significant changes in book value during the year
252Annotations 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 9730768.49 New performance sales contract
Total 9730768.49 —
(3) Provision for impairment of contract asset in the Period
Balance at year-end
Category Book balance Bad debt provision
Book value
Amount Ratio (%) Amount Ratio (%)
Withdrawal bad debt provision
13879087.90100.00617397.284.4513261690.62
by single
Total 13879087.90 100.00 617397.28 4.45 13261690.62
Continued
Amount at year-begin
Category Book balance Bad debt provision
Book value
Amount Ratio (%) Amount Ratio (%)
Withdrawal bad debt provision
4301610.03100.00770687.9017.923530922.13
by single
Total 4301610.03 100.00 770687.90 17.92 3530922.13
1）Bad debt provisions are made individually for contract assets
Amount at year-begin Ending balance
Name Bad debt Bad debt
Book balance Book balance Ratio (%) Reason
provision provision
Provision for
bad debts of
4301610.03770687.9013879087.90617397.284.45
contract ass
ets
Total 4301610.03 770687.90 13879087.90 617397.28 — —
（4）The provision recovery or transfer of bad debt provisions for contract assets this year
project
Item Provision for this Transferred this year Write -off this year Reason
year
Provision for bad debts of c
153272.28306562.90
ontract assets
253Annotations 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 Transferred this year Write -off this year Reason
year
Total 153272.28 306562.90 —
10. Non-current assets coming due within one year
Item Balance at year-end Balance at year -begin
Creditor's right investment due within
122294027.78170167638.89
one year
Total 122294027.78 170167638.89
（1）Creditor's right investment due within one year
1）Creditor's right investment due within one year
Balance at year-end Balance at year-begin
Impair Impair
Name ment ment
Book balance Book value Book balance Book value
provisi provisi
on on
large deposit
122294027.78122294027.78170167638.89170167638.89
certificates
Total 122294027.78 122294027.78 170167638.89 170167638.89
2）.Creditor's right investment due within 1 year at the end of the year
Actual rate Overdue principal
Interest Date of Balance Balance
Item Face value Balance at year- Balance at
rate expiring at year- at year-
end year-begin
end begin
large deposit
20000000.003.70%2024-4-1322039111.11
certificates 21288833.33
large deposit 100254916.6
100000000.003.99%2024-2-8100254916.67
certificates 7
Total 120000000.00 — — — —
11.Other current asset
Item Balance at year-end Balance at year-begin
VAT to be deducted 193911165.30 39540856.28
Advance payment of income tax 29599620.50 22673762.88
Contract acquisition cost 701222.80 5654727.03
254Annotations 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 50559479.17
Local sales tax in Pakistan 511584.19 1269125.78
Other 696290.28 891480.71
Total 225419883.07 120589431.85
12.Creditors' right investment
（1）creditor's right investment
Balance at year-end Balance at year-begin
Impair Impair
Item ment ment
Book balance Book value Book balance Book value
provisio provisio
n n
large deposit
420537485.54420537485.54121543750.00121543750.00
certificates
Total 420537485.54 420537485.54 121543750.00 121543750.00
（2）important creditor's right investment
balance at year-end
Item Overdue
Face value Interest rate Actual rate Date of expiring
principal
large deposit
100000000.003.20%3.20%2026-1-31
certificates
large deposit
80000000.003.35%3.35%2026-3-28
certificates
large deposit
30000000.003.20%3.20%2026-3-16
certificates
large deposit
30000000.003.30%3.30%2026-5-31
certificates
large deposit
50000000.003.30%3.30%2026-6-14
certificates
large deposit
50000000.003.10%3.10%2026-6-26
certificates
large deposit
20000000.003.15%3.15%2026-7-31
certificates
large deposit
25000000.003.25%3.25%2025-8-30
certificates
large deposit
25000000.003.30%3.30%2025-8-30
certificates
255Annotations 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)balance at year-end
Item Overdue
Face value Interest rate Actual rate Date of expiring
principal
Total 410000000.00 — — —
Continued
Balance at year-begin
Item Overdue
Face value Interest rate Actual rate Date of expiring
principal
large deposit
100000000.003.99%3.99%2024-2-8
certificates
large deposit
20000000.003.70%3.70%2024-4-13
certificates
Total 120000000.00 — — —
256Annotations 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
Changes in Current Year
Othe
Impair r
Balanc
ment com Oth
Investment
provisi e at preh er
profit and Declaration Provision
Balance at on ensiv cha Balance at year-
Invested enterprise Additional Disinvestme loss of cash for
year-begin begin- e nge Other year-end end of
investment nt confirmed by dividends or impairme
year inco s of impair
equity profits nt
balanc me equ
method ment
e adjus ity
tmen
t
Associated companies
1.Hefei Xingmei Assets Management 1989917
33680.3414139256.7
Co. Ltd. 6.44 5793600.00
8
2.Sichuan Zhiyijia Network Technology 5185017
18633005.768854162.7
Co. Ltd. note1 9.61 1629022.64
30
3.Hong Yuan Ground Energy Heat Tech. 1701904 24500000.0 -
Co. Ltd.note2 1.81 0 1847143.30 9328101.49
4.Sichuan Tianyou Guigu Technology 3110581.
-161722.64
Co. Ltd.note3 87 2948859.23
5.Chengdu Guigu Environmental Tech. 8505448. 250813.73
257Annotations 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)Changes in Current Year
Othe
Impair r
Balanc
ment com Oth
Investment
provisi e at preh er
profit and Declaration Provision
Balance at on ensiv cha Balance at year-
Invested enterprise Additional Disinvestme loss of cash for
year-begin begin- e nge Other year-end end of
investment nt confirmed by dividends or impairme
year inco s of impair
equity profits nt
balanc me equ
method ment
e adjus ity
tmen
t
Co. Ltd.note4 77 8756262.50
6.ChanghongRuba
注
ElectricCompany(Private)Ltd. 5
7. .Hefei Xinmei Solar Energy
注
Technology Co. Ltd.note 6 2177980.00 2177980.00
8.Sichuan Hongyun Venture Investment
18000000.047270.5418047270.5
注
Partnership（LP） 7
04
100384424500000.0
Total 18000000.0 19133884.4 112745811.
28.5009600602.649328101.49
0075
258Annotations 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 shareholder
Sichuan 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 registered
capital of 50 million yuan among which the Company made contribution of 15 million yuanwith shareholding
proportion of 30% and Sichuan Changhong Electric Co. LTD made contribution of 35 million yuanwith
shareholding proportion of 70%. In 2019 the Company increase capital of 29087040.00 yuan (of which: 20 million
yuan reckoned in registered capital and 9087040 yuan reckoned in capital reserves) to Zhiyijia with shareholding
ratio up to 50%.Note 2: subsidiary Sichuan Changhong Air Conditioner Co. Ltd (“Changhong Air Conditioner”) and Hengyou yuan
Technology Development Group Co. Ltd. (“Hengyou yuan”) cooperated to establish Hong Yuan Ground Energy
Heat Technology Co. Ltd. on 28 October 2015. The registered capital of the company is 50 million yuan among
which Changhong Air Conditioner contributed 24.5 million yuan accounting for 49% of the registered capital and
Hengyou yuan contributed 25.5 million yuan accounting for 51% of the registered capital. In December 2022 the
shareholders' meeting of Hongyuan Ground Company passed the decision to cancel and liquidate the company and
the liquidation and cancellation was completed within this year.Note 3: Sichuan Tianyou Guigu Technology Co. Ltd. was incorporated on 31 March 2015 with registered capital
of 100 million yuan. Our subsidiary Changhong Air Conditioner made capital contribution of RMB 25 million in
cash accounting for 25% of the registered capital. Chengdu Jiaodao Property Development Company made capital
contribution of 20 million yuan accounting for 20% of the registered capital. Chengdu Southwest Jiaotong
University Industry (Group) Co. Ltd made capital contribution of 20 million yuan accounting for 20% of the
registered 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. Ltd
made capital contribution of 5 million yuan accounting for 5% of the registered capital. Jiangsu Runye Investment
Co. Ltd. made capital contribution of 10 million yuan accounting for 10% of the registered capital. In November
2015 Jiangsu Runye Investment Co. Ltd. transferred all its 10% shares to Sichuan Shuye Jiachen Real Estate
Development 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. transferred
all its 15% shares to Chengdu Dongyu No. 1 Enterprise Management Consulting Partnership (Limited
Partnership).In 2016 shareholders meeting of Sichuan Tianyou Guigu Technology Co. Ltd. agreed to reduce the
50 million Yuan capital the shareholders are reducing the capital by ratio of share-holding. After capital reduction
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 of
40 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 capital
contribution of 8 million yuan accounting for 20% of the registered capital. Chengdu Southwest Jiaotong University
Industry (Group) Co. Ltd made capital contribution of 8 million yuan accounting for 20% of the registered capital.
259Annotations 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% of
the registered capital. Shanghai Zhongcheng Xindaya Financial Information Service Co. Ltd made capital
contribution of 2 million yuan accounting for 5% of the registered capital. Sichuan Shuye Jiachen Property
Development Company made capital contribution of 4 million yuan accounting for 10% of the registered capital.Chengdu Dongyu Shangmao Co. Ltd made capital contribution of 6 million yuan accounting for 15% of the
registered capital
Note 5: Zhongshan Changhong a subsidiary of the Company entered into a supplemental joint venture agreement
with RUBA Comprehensive Trading Company in 2017 pursuant to which both parties agreed to increase capital
contribution of US$ 1130191.00 among which Zhongshan Changhong subscribed to contribute US$ 452076.00
(equivalent to 3001649.02 yuan on the actual contribution date) according to the original shareholding proportion
of 40% and RUBA Comprehensive Trading Company subscribed to contribute US$ 678115.00 according to the
original shareholding proportion of 60%.Note 6: Hefei Meiling Solar Energy Technology Co. Ltd. was incorporated on April 18 2002 with a registered
capital of 10 million yuan. Subsidiary Hefei Meiling Group Holdings Limited invested 3.1114 million yuan
accounting for 31.114% of the registered capital; Hefei Huayi Investment Co. Ltd. invested 4.972 million yuan
accounting for 49.72% of the registered capital; Hefei Xingtai Asset Management Co. Ltd. invested 1.9166 million
yuan accounting for 19.166% of the registered capital.Note 7.On May 5 2023 the Company signed a partnership agreement with the controlling shareholder Sichuan
Changhong Electric Co.Ltd. Sichuan Changhong Electronic (Group) Co. Ltd. and Sichuan Hongyun Venture
Equity 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 by
the 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. 554145436.29 542489224.37
Sichuan Hongyun New-Generation Information
technology Venture Capital Fund Partnership (limited 36507860.19 41015878.36
partnership)
Changhong Group Sichuan Shenwan Hongyuan Strategic
New Industrial Parent Fund Partnership (limited 68686219.00 40044345.58
partnership)
Huishang Bank Co. Ltd. 14800000.00 5000000.00
Total 674139515.48 628549448.31
15. Investment real estate
(1) Investment real estate measured at costs
260Annotations 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 62361143.47 62361143.47
2.Increase in this year
3.Decrease in this year
4.Balance at year-end 62361143.47 62361143.47
II.Accumulated depreciation and accumulated
amortization
1.Balance at year-begin 9463082.58 9463082.58
2.Increase in this year 1977573.18 1977573.18
（1）Withdrawal or amortization 1977573.18 1977573.18
3.Decrease in this year
4.Balance at year-end 11440655.76 11440655.76
III.Impairment provision
IV.Book value
1.Ending book value 50920487.71 50920487.71
2. Opening book value 52898060.89 52898060.89
(2) No investment real estate measured by fair value at year-end.
(3) Investment real estate without property certification held
Reasons for failing to complete
Item Book value
property rights certificate
J04workshop 26619770.82 Related property rights in procedure
J03workshop 18395279.76 Related property rights in procedure
J20 air compressor station workshop 1314489.13 Related property rights in procedure
J18 opening and closing office 636117.23 Related property rights in procedure
Total 46965656.94
16.Fixed assets
Item Book value at year-end Book value at year-begin
Fixed assets 2104618850.52 2197260683.20
Liquidation of fixed assets 32293183.76 32293183.76
Total 2136912034.28 2229553866.96
16.1 Fixed assets
（1） Fixed assets
261Annotations 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)House and Machinery Transport Other
Item Total
buildings equipment equipment equipment
I.Original book value
1712329446.
1.Balance at year-begin 1865348912.3 34208114.6 243498921.3 3855385395.0
72
2060
2.Increase in this year 43261437.77 127160620.75 208336752.62
1981576.2635933117.84
(1)Purchase 10037274.17 7011877.87 19030728.30
1981576.26
(2)Construction in progress
42770821.16111314699.90
transfer-in 28885411.88 182970932.94
（3）Other increase 490616.61 5808646.68 35828.09 6335091.38
3.Decrease in this year 17917779.20 150468417.32 679157.25 8178141.27
177243495.04
（1）Dispose or retirement 46817.00 61989767.62 514675.38 7693871.79 70245131.79
(2)Construction in progress
84128835.5284128835.52
transfer-in
（3）Other increase 17870962.20 4349814.18 164481.87 484269.48 22869527.73
4.Balance at year-end 1737673105. 1842041115.7 35510533.6 271253897.9 3886478652.5
295138
II.Accumulated depreciation
1.Balance at year-begin 1064311933.4 22446081.4 114040153.7 1656055119.1
455256950.47
8498
2.Increase in this year 55603756.85 142849646.44
3021425.9027246030.87228720860.06
(1)Accrual 55603756.85 142849646.44
3021425.9027225313.68228700142.87
（2）Other increase 20717.19 20717.19
3.Decrease in this year 3172136.80 92885751.89 610384.11 7359926.59
104028199.39
（1）Dispose or retirement 22180.29 54711171.42 484471.72 7007459.33 62225282.76
(2)Construction in progress
37833279.5137833279.51
transfer-in
（3）Other increase 3149956.51 341300.96 125912.39 352467.26 3969637.12
4.Balance at year-end 1114275828.0 24857123.2 133926258.0 1780747779.8
507688570.52
3375
262Annotations 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)House and Machinery Transport Other
Item Total
buildings equipment equipment equipment
III.Impairment provision
1.Balance at year-begin 1060299.52 1009293.10 2069592.62
2.Increase in this year
3.Decrease in this year 946836.82 10733.59 957570.41
(1)Dispose or retirement 924106.56 10733.59 934840.15
（2）Other decrease 22730.26 22730.26
4.Balance at year-end 113462.70 998559.51 1112022.21
IV.Book value
1.Ending book value 1229984534. 727651825.02 10653410.3 136329080.3 2104618850.5
77852
1257072496.11762033.1128449474.42197260683.2
2. Opening book value 799976679.32
25670
The new fixed assets in this year mainly due to the 182970932.94 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
Accumulated Impairment
Item Original book value Book value
depreciation provision
House and buildings 77095418.04 30649122.95 46446295.09
Machinery
23864393.6815528428.428335965.26
equipment
Other equipment 10720.00 10184.00 536.00
Total 100970531.72 46187735.37 54782796.35
(4) Fixed assets without property certificate
Reason of not complete the property
Item Book value
certificate
J07 electrical workshop 43746628.68 Related property rights in procedure
J02workshop 28141535.48 Related property rights in procedure
J05 evaporator and condenser
27102662.73 Related property rights in procedure
workshop
J01workshop 26083556.62 Related property rights in procedure
J06 central air-conditioner
18404265.79 Related property rights in procedure
workshop
J50finished product warehouse 16219453.72 Related property rights in procedure
263Annotations 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)Reason of not complete the property
Item Book value
certificate
J51finished product warehouse 15737406.33 Related property rights in procedure
J53finished product warehouse 11941524.09 Related property rights in procedure
J52finished product warehouse 11412002.93 Related property rights in procedure
J54finished product warehouse 11160992.28 Related property rights in procedure
J55finished product warehouse 10290013.27 Related property rights in procedure
J56 finished product warehouse 10290013.27 Related property rights in procedure
J09raw material warehouse 6238503.81 Related property rights in procedure
J10raw material warehouse 4821256.39 Related property rights in procedure
J11raw material warehouse 4749533.53 Related property rights in procedure
J08 packing materials warehouse 4328338.68 Related property rights in procedure
J17 chemical storage 1481542.49 Related property rights in procedure
J15 house of refrigerant forklift 1451852.84 Related property rights in procedure
J16 chemical storage 1195695.94 Related property rights in procedure
J19 main guard room 354683.89 Related property rights in procedure
J19A guard room 188172.78 Related property rights in procedure
J19D guard room 138334.30 Related property rights in procedure
J19E guard room 138334.30 Related property rights in procedure
Total 255616304.14
16.2 Disposal of fixed assets
Amount at year- Amount at year- Reasons for disposal
Item
end begin transferred
Relocation for land
Relevant assets disposal for reserved lands 32293183.76 32293183.76
reserve
Pursuant to the urban planning requirements of Hefei Municipal Government and the Government of Feidong
county the land reserve center of Feidong county will purchase and store the land use right of an economic
development 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 19245.09 sq.m. (Approximately 28.87
mu Land Use Right Certificate No.: Dong Guo Yong (2008) No. 0366 the stated use of the land is for industrial
purpose) and an area of 46161.9 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 and
storage is approximately 36 million yuan of which the consideration for the land use right owned by Equator
Electric 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 the
land will transfer as disposal accounting treatment will be conduct in line with relevant rules upon receiving of the
264Annotations 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 69920839.20 66522492.77
Total 69920839.20 66522492.77
(1) Details of construction in progress
Balance at year-end Balance at year-begin
Im
pa
Im
ir
pai
m
rm
Item en
Book balance ent Book value Book balance Book value
t
pro
pr
visi
ov
on
isi
on
Air conditioning manufacturing
system capacity upgrading projec 24062124.83 24062124.83
Zhongshan Changhong technical
7036680.597036680.59615619.91615619.91
transformation project
Industrial Internet Changhong
5563207.575563207.5713041733.93
Meiling Promotion Project 13041733.93
New flat color plate door shell line
2155584.072155584.07
project
Transformation and maintenance
project of large line for B-line shift 2048088.46 2048088.46
recovery
To-be-installed equipment project 2003069.71 2003069.71
Commercial kitchen refrigerator
1894989.001894989.002627743.252627743.25
cabinet project
Projects to improve the capacity
and production efficiency of the
1624647.041624647.04
washing machine manufacturing
company in the first quarter
Fixed assets project of 7 kg
1534513.281534513.28
supporting production equipment
265Annotations 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)Balance at year-end Balance at year-begin
Im
pa
Im
ir
pai
m
rm
Item en
Book balance ent Book value Book balance Book value
t
pro
pr
visi
ov
on
isi
on
Large refrigerator efficiency
improvement and transformation 1388626.00 1388626.00
project
Rectification project of elevators
and fire hazards in charging area of 1124589.14 1124589.14
finished product warehouse
Manufacturing system automation
1113002.291113002.29
project in 2023
Extrusion and crushing capacity
improvement demand project of
1033130.001033130.00
Hefei refrigerator manufacturing
company
New plastic vacuum forming
1027433.621027433.62
machine project
Adaptability transformation project
of fin stamping production line and 2634632.94 2634632.94
its supporting equipment
Liquid nitrogen tank production
680956.02680956.02560521.11560521.11
line construction project
Laboratory investment projects 627076.10 627076.10 2384325.39 2384325.39
Supporting production equipment
617699.12617699.121919823.021919823.02
of washing machine
Meiling extrusion line relocation
339115.04339115.046938682.026938682.02
and capacity expansion project
Efficiency improvement of
182748.20182748.20
refrigerator cabinet
Comprehensive renovation project
of mixed flow of rainwater and
6995545.896995545.89
sewage in freezer park and living
area
266Annotations 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)Balance at year-end Balance at year-begin
Im
pa
Im
ir
pai
m
rm
Item en
Book balance ent Book value Book balance Book value
t
pro
pr
visi
ov
on
isi
on
Accident emergency pool
1539361.491539361.49
construction project
Comprehensive renovation project
of mixed flow of rainwater and
2597950.952597950.95
sewage in freezer park and living
area
Front-end expansion project of
Hefei base with an annual output 3242813.99 3242813.99
of 10 million refrigerator cabinets
Refrigerator park 35 kV substation
1273661.541273661.54
construction project
Door lining to homemade phase I
2328292.802328292.80
project
Multi-door shell molding line 5053126.87 5053126.87
Large refrigerator low boiling
point foaming equipment 1652011.04 1652011.04
renovation project
Freeze lining structure changed to
2886521.552886521.55
bottom package side
21 years of Manufacturing System
186700.00186700.00
Automation Project (Phase I)
Meiling PLM project 237168.14 237168.14
Other petty projects 10258141.68
11411674.3811411674.3810258141.68
Total 69920839.20 69920839.20 66522492.77 66522492.77
18. Right-of-use assets
Item House and buildings Total
I. Original book value
267Annotations 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 58322978.95 58322978.95
2.Increase in this year 29503973.75 29503973.75
(1) Rent in 29503973.75 29503973.75
3. Decrease in this year 25821804.55 25821804.55
（1）lease expired 25821804.55 25821804.55
4.Balance at year-end 62005148.15 62005148.15
II.Accumulated depreciation
1.Balance at year-begin 21676843.85 21676843.85
2. Increase in this year 8872309.05 8872309.05
(1)Accrual 8872309.05 8872309.05
3. Decrease in this year 18537405.36 18537405.36
（1）lease expired 18537405.36 18537405.36
4.Balance at year-end 12011747.54 12011747.54
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 49993400.61 49993400.61
2. Opening book value 36646135.10 36646135.10
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
Trademark Non-patent Patent
Item Land use right Other Total
special right technology technology
I.Original book
value
1.Balance at year- 283292439.
148876015.351945670528.8
begin 864798616.68 34 637791820.51 10911637.00
8
2.Increase in this
56025706.04281800.00
year 105295988.38 161603494.42
(1) Internal 96484623.15 56025706.04 281800.00
268Annotations 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)Trademark Non-patent Patent
Item Land use right Other Total
special right technology technology
research 152792129.19
（2）Other 8811365.23 8811365.23
3.Decrease in this
60000.008811365.238871365.23
year
(1) Disposal
(2)Other
60000.008811365.238871365.23
decreases
4.Balance at year- 283292439.
196090356.162098402658.0
end 864798616.68 34 743027808.89 11193437.00
7
II.Accumulated
amortization
1.Balance at year- 283292439.
48405910.793169107.30
begin 214959291.84 34 449672240.15 999498989.42
2.Increase in this
18422044.5928534580.711066351.37
year 100621606.54 148644583.21
(1)Accrual 18422044.59 28534580.71 1066351.37
100621606.54148644583.21
3.Decrease in this
year
4.Balance at year- 283292439.
76940491.504235458.671148143572.6
end 233381336.43 34 550293846.69
3
III.Impairment
provision
1.Balance at year-
33820367.207274668.724508495.3345603531.25
begin
2.Increase in this
7183626.2111016493.2518200119.46
year
(1)Accrual 7183626.21 11016493.25 18200119.46
3.Decrease in this
year
4.Balance at year-
41003993.4118291161.974508495.3363803650.71
end
IV.Book value
1.Ending book
100858702.692449483.00
value 631417280.25 151729968.79 886455434.73
2. Opening book 93195435.84 3234034.37
269Annotations 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)Trademark Non-patent Patent
Item Land use right Other Total
special right technology technology
value 649839324.84 154299213.16 900568008.21
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
Determinati
Number Key
on basis of
of years Key paramete
Recoverabl Impairment key
Item Book value of parameters of rs of
e amount amount parameters
forecast forecast period stable
in stable
period period
period
Ice washing
Sales volume
intangible 1028634.7 593540.28 3
435094.51 income cost
assets 1 9
Ice washing
Sales volume
intangible 617999.09 617999.09 3
income cost
assets 2
Ice washing
Sales volume
intangible 579421.08 383768.42 3
195652.66 income cost
assets 3
Ice washing
Sales volume
intangible 4145708.7 3616298.6 3
529410.04 income cost
assets 4 3 9
Air-
conditioning Sales volume
13410734.12988512.5
intangible 422221.41 income cost
3998
assets 1
Total 19782498. 1582378.6 18200119. — — — —
08246
20. Goodwill
(1) Original value of goodwill
270Annotations 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)Increase this year Decrease this year
Formation Formation
Balance at year- Balance at
Invested enterprise from from
begin Other Other year-end
enterprise enterprise
merger merger
Hefei Meiling Group Holdings 3553367.
3553367.77
Limited 77
3553367.
Total 3553367.77
77
(2) Impairment loss of goodwill
Balance at Increase this year Decrease this year Balance at
Invested enterprise
year-begin Accrual Other Accrual Other year-end
Hefei Meiling Group Holdings
3553367.773553367.77
Limited
Total 3553367.77 3553367.77
Note: The Company’s goodwill has been fully accrued for impairment reserves at year-end.
21. Long-term prepaid expenses
Increase this Amortization
Item Opening balance Other decreases Ending balance
period for the period
Long-term prepaid
14900600.5929997082.899199217.8635698465.62
expenses
Total 14900600.59 29997082.89 9199217.86 35698465.62
22. Deferred tax assets and deferred tax liabilities
(1) Deferred income tax assets without the offset
Ending balance Opening balance
Deductible Deferred Deductible Deferred
Item
temporary income tax temporary income tax
difference assets difference assets
Deferred income tax assets recognized
575117840.02684314381.95
from ir-reparable losses 86267676.00 102647157.29
Deferred income tax assets recognized
312522821.29220654506.5033098175.98
from assets impairment 47114940.66
Deferred income tax assets recognized
89179865.35100794535.0015119180.24
from deferred income 13376979.81
Deferred income tax assets recognized 52138935.61 7287948.90 38239898.15 4935157.87
271Annotations 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)Ending balance Opening balance
Deductible Deferred Deductible Deferred
Item
temporary income tax temporary income tax
difference assets difference assets
by lease liabilitie
Deferred income tax assets recognized
31904790.394785718.5612624332.221893649.84
from accrual liability
Deferred income tax assets recognized
13940576.252091086.449072708.081360906.21
from Dismission welfare
Accrued income tax assets 6464906.83 1367611.03 8718636.16 1666526.91
Deferred income tax assets recognized
323557.5048533.63
by changes in fair value
Deferred income tax assets recognized
5632939.75844940.96
for development expenditure
1081593293.2162340495.0
Total 1080051937.81 161565695.30
43
(2) Deferred income tax liabilities without the offset
Ending balance Opening balance
Taxable Deferred Taxable Deferred
Item
temporary income tax temporary income tax
differences liability differences liability
Recognized by changes in fair value 72922565.81 10938384.87 57642166.20 8646324.93
Deferred income tax liabilities
49993400.617031136.3136646135.084758755.78
recognized by use asset
Recognized by fixed assets depreciation 25632968.47 3844945.25 27362815.80 4104422.37
Total 21814466.43 121651117.08 17509503.08
148548934.89
(3) Details of unrecognized deferred income tax assets
Item Ending balance Opening balance
Deductible temporary difference 159108623.94 168621827.52
Deductible loss 216256401.45 1068180146.62
Total 375365025.39 1236801974.14
23. Other non-current assets
272Annotations 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)Amount at year-end Amount at year-begin
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Prepaid
equipment 15299373.85 15299373.85 893238.57 893238.57
engineering etc.Contract asset 11955960.50 653720.00 11302240.50
Total 27255334.35 653720.00 26601614.35 893238.57 893238.57
24.Assets with restricted ownership or use right
Year-end
Item Book Balance Restrictio
Book value Restriction information
n type
Security deposit; Frozen for
Monetary funds 438655288.66 438655288.66 Frozen
litigation
Receivable Pledge for issuing bank
997291535.93 997291535.93 Pledge
financing acceptance bills
Fixed assets 478732601.33 321209491.52 Mortgage Loan mortgage
Intangible assets 415797056.93 264252595.08 Mortgage Loan mortgage
Real estate
5795017.72 3097441.68 Mortgage Loan mortgage
investment
Total 2336271500.57 2024506352.87 — —
Continued
Year-Begin
Item Book Balance Restrictio
Book value Restriction information
n type
Security deposit; Frozen for
Monetary funds 718777132.92 718777132.92 Frozen
litigation
Receivable Pledge for issuing bank
405400483.49 405400483.49 Pledge
financing acceptance bills
Fixed assets 477550851.88 335613742.86 Mortgage Loan mortgage
Intangible assets 415797056.93 272690841.98 Mortgage Loan mortgage
Real estate
5795017.72 3278221.44 Mortgage Loan mortgage
investment
Total 2023320542.94 1735760422.69 — —
25. Short-term loans
273Annotations 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 5000000.00 55000000.00
Loan in credit 1128967080.14 619000000.00
Interest payable 135338.89 143916.67
Total 1134102419.03 674143916.67
(2)Short-term loans overdue：N/A.
26. Trading financial liability
Item Balance at year-end Balance at year-begin
Trading financial liability 32229012.86 41961524.78
Including: Derivative financial liability 32229012.86 41961524.78
27. Note payable
Type Balance at year-end Balance at year-begin
Bank acceptance 5604059289.98 4814889712.60
Trade acceptance 300327800.00 149484800.00
Total 5904387089.98 4964374512.60
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 3882303908.89 2917997138.00
Including: Amount aged over 1 year 87743285.28 60523652.84
(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 55949.90
Including: Amount aged over 1 year
30. Contract liabilities
(1) Contract liabilities
274Annotations 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 405698756.02 358755397.77
Including: Amount aged over 1 year 42798796.43 29823819.05
(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
Balance at year- Balance at year-
Item Increase this year Decrease this year
begin end
Short-term compensation 323031068.96 1940853268.37 1826488008.55 437396328.78
After-service welfare-
20496424.32130607322.88149350753.711752993.49
defined contribution plans
Dismiss welfare 4627421.85 5351632.96 5516160.52 4462894.29
Total 348154915.13 2076812224.21 1981354922.78 443612216.56
(2) Short-term compensation
Balance at year-
Item Increase this year Decrease this year Balance at year-end
begin
Wages bonuses
311848079.071763520099.951646156298.23429211880.79
allowances and subsidies
Welfare for workers and
402556.8244956094.7744800915.71557735.88
staff
Social insurance 5220685.85 55304847.10 58824501.74 1701031.21
Including: Medical
4811752.3951120600.0554344297.181588055.26
insurance
Work injury insurance 325176.62 3877243.14 4173200.65 29219.11
Maternity insurance 83756.84 307003.91 307003.91 83756.84
Housing accumulation
5115350.8671450059.5671153065.185412345.24
fund
Labor union expenditure
and personnel education 444396.36 5622166.99 5553227.69 513335.66
expense
Total 323031068.96 1940853268.37 1826488008.55 437396328.78
(3) Defined contribution plans
Item Balance at year- Increase this year Decrease this year Balance at year-end
begin
Basic endowment 18215805.28 117094798.57 134712242.46 598361.39
275Annotations 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- Increase this year Decrease this year Balance at year-end
begin
insurance
Unemployment
2280619.0413512524.3114638511.251154632.10
insurance
Total 20496424.32 130607322.88 149350753.71 1752993.49
32. Tax payable
Item Balance at year-end Balance at year-begin
Value-added tax 16433804.39 30277729.74
Enterprise income tax 22442997.30 1822555.65
Individual income tax 9049531.30 4799031.61
Urban maintenance and construction
8800180.859544272.36
tax
Real estate tax 3702169.69 3658985.41
Land use tax 1430553.17 1431191.08
Educational surtax 6388436.72 6850511.36
Stamp tax 4270122.54 3654400.08
Construction fund of Water
663334.83668948.01
Conservancy Projects
Treatment fund for abandon electrics
16436695.0017508786.00
& electronics
Other 2299925.92 71467.32
Total 91917751.71 80287878.62
33. Other account payable
Item Balance at year-end Balance at year-begin
Dividend payable 5384407.44 4978994.16
Other account payable 879330313.86 823228574.05
Total 884714721.30 828207568.21
33.1 Dividend payable
276Annotations 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
432607.23432607.23
Limited
Hefei Branch of Bank of China 446576.60 391245.50
Hefei Collective Industrial Association 446575.90 391244.89
Provincial trust and investment company Wuhu
357261.30312996.42
office
China Life Insurance Group Co. Ltd. 288404.82 288404.82
BOC- Fullgoal Tianyi Securities Investment Fund 153697.50 153697.50
Other units 3259284.09 3008797.80
Total 5384407.44 4978994.16
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) 381110482.12 344028624.89
Receivables received temporary and deducted temporary 13201384.59 13166091.61
Deposit margin 170042120.52 174331550.53
Not the come-and-go with related parties in statement scope 285951275.98 278716366.01
Other 29025050.65 12985941.01
Total 879330313.86 823228574.05
(2) At end of the year the major other account payable with account age over one year mainly refers to the deposit
and 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 40172155.56 20211488.89
Lease liabilities due within one year 8650642.91 10075610.19
Total 48822798.47 30287099.08
35. Other current liabilities
Item Balance at year-end Balance at year-begin
Pending sales tax 18915531.41 21970126.59
Factoring fees payable 218335.59 635142.92
Bill recovery 38674.50
Total 19172541.50 22605269.51
277Annotations 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 108000000.00 148000000.00
Total 108000000.00 148000000.00
(2) Long-term borrowings at year-end
Foreig
Borrowing n Interest Amount at year- Amount at year-
Loan from Returning day
day curren rate end (RMB) begin(RMB)
cy
EIBC (Export-Import
Bank) Anhui Province 2020/3/26 2026/11/25 RMB 4.105% 98000000.00 98000000.00
Branch note1
EIBC (Export-Import
Bank) Anhui Province 2019/12/23 2026/11/25 RMB 4.005% 10000000.00 50000000.00
Branch note2
Total 108000000.00 148000000.00
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 as
mortgage for a long-term loan under the contract. And withdrawal of 98000000.00 yuan on March 26 2020. The
term of the loan is from March 26 2020 to November 25 2026 the interest rate of the loan is determined according
to the market quotation rate of the loan with a term of more than 5 years reduced by 0.195% which fluctuates
annually and the amount of the loan is 98000000.00 yuan. The balance at the end of the year is RMB 98000000.00.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 and
intangible assets are used as mortgage for the loan. The term of the loan is from December 23 2019 to November
25 2026 the interest rate of the loan is determined according to the market quotation rate of the loan with a term of
more than 5 years reduced by 0.195% which fluctuates annually and the amount of the loan is 100000000.00
yuan. According to the repayment plan agreed with the bank the Company has repaid 50000000.00 yuan. It plans
to repay 20000000.00 yuan on June 25 2024 and repay 20000000.00 yuan on December 25 2024 a total of
40000000.00 yuan has been reclassified to non-current liabilities due within one year. The balance at the end of
the year is RMB 10000000.00.
37. Lease liability
Item Balance at year-end Balance at year-begin
Lease liability 43488292.70 28164287.97
278Annotations 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 43488292.70 28164287.97
38. Long-term payable
Item Balance at year-end Balance at year-begin
Special payable 800347.84 1145286.48
Total 800347.84 1145286.48
38.1Special payable
Balance at Increase this Decrease this Balance at year-
Item Reason
year-begin year year end
Special funds for
Technology plan
technological
1145286.48 344938.64 800347.84 project in
transformation from
Zhongshan City
Zhongshan Changhong
39. Long-term wage payable
Item Balance at year-end Balance at year-begin
Dismissal welfare 11417181.82 10790859.64
Total 11417181.82 10790859.64
According to the internal early retirement policy the long-term payable dismissal welfare bears by the Company
up to year-end amounting to 11417181.82 yuan
40. Accrual liability
Item Balance at year-end Balance at year-begin Reason
Product quality guarantee note1 29939918.07 30965097.36 Product warranty
Litigation matters note2 2114872.32 1720534.42
Total 32054790.39 32685631.78
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 subject
under the contract is being authenticated by a third party engineering quality appraisal agency the initial start-up
operation test is now completed. Zhongke Meiling intends to maintain the cold storage project and the estimated
maintenance cost is 1720534.42 yuan. The management has provided a total estimated liability of 394337.90 yuan
for other business lawsuits.
41. Deferred income
279Annotations 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)Balance at year- Increase this Decrease this Balance at year-
Item Reason
begin year year end
Government subsidies---
subsidies of development 127493219.76 2744400.00 28197396.49 102040223.27
project
Government subsidies---
33520692.152583421.0930937271.06
subsidies of Relocation
Total 161013911.91 2744400.00 30780817.58 132977494.33
42. Share capitalChange during the year (+、-)）
Bon Shares
Balance at year- New
Items us transferred Ending balance
begin shares Other Subtotal
shar from capital
issued
e reserve
Total
1029923715.001029923715.00
shares
43. Capital reserve
Item Opening balance Increase this period Decrease this period Ending balance
Share premium 2758450812.90 990446.53 2757460366.37
Other capital
48043091.4048043091.40
reserve
Total 2806493904.30 990446.53 2805503457.77
This year's decrease is the difference between the consideration paid by Sichuan Changhong Air Conditioning
Co. Ltd. a subsidiary to Hongyuan Dineng Heat Pump Technology Co. Ltd. and the net asset value it should be
entitled to when it is transferred.
44. Other comprehensive income
280Annotations 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)Current Year
Less:
written in
other
comprehe
nsive Less
Account
income in ： Belong to Belong to
Balance at before Balance at
Item previous Incom parent minority
year-begin income tax year-end
period and e tax company shareholder
in Current
carried expens after tax s after tax
Year
forward to es
gains and
losses in
current
period
Other comprehensive income re-divided into gains/losses
Conversion
difference
--
arising from
20881462.6433908.69177100.58256808.1120704362.0
foreign currency
35
financial
statement
--
Total 20881462.6 433908.69 177100.58 256808.11 20704362.0
35
45.Special reserves
Amount at year- Amount at year-
Item Increase this year Decrease this year
begin end
Safety production costs 2467205.78 31277872.27 22498266.14 11246811.91
Total 2467205.78 31277872.27 22498266.14 11246811.91
Note: This year's increase refers to the work safety expenses accrued according to the notice issued by the
Ministry of Finance on November 21 2022 on printing and distributing the Administrative Measures for the
Extraction and Use of Work Safety Expenses of Enterprises (CZ [2022] No.136).
46. Surplus reserves
Amount at year- Amount at year-
Item Increase this year Decrease this year
begin end
Statutory surplus reserve 325610989.32 35834503.34 361445492.66
281Annotations 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)Amount at year- Amount at year-
Item Increase this year Decrease this year
begin end
Discretionary surplus
115607702.16115607702.16
reserve
Total 441218691.48 35834503.34 477053194.82
47. Retained profit
Item Current Year Last Year
Prior year-end balance 909082037.66 734129724.00
Add: adjustment from undistributed profit at year-begin 167328.13
Including: retroactive adjustment by Accounting
Standards for Business Enterprise
change of accounting policy 167328.13
Correction of former material error
Change of combination scope under common control
Balance at year-begin 909249365.79 734129724.00
Add: net profit attributable to shareholders of parent
741038108.54244538734.49
company for this year
Less: withdraw of statutory surplus reserve 35834503.34 18090235.08
withdraw of discretionary surplus reserve
Withdraw of general risk provision
Dividend payable for ordinary shares 92693134.35 51496185.75
Dividend of ordinary shares transferred to share capital
Balance at year-end 1521759836.64 909082037.66
48. Operation income and operation cost
(1) Operation income and operation cost
Current Year Last Year
Item
Income Cost Income Cost
Main
24022148584.5920725758770.7720037625297.5217325069941.59
business
Other
225530385.97140797026.96177594894.68119460293.73
business
Total 24247678970.56 20866555797.73 20215220192.20 17444530235.32
(2)The decomposition information of operation income and operation cost
282Annotations 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)Current Year Last Year
Type
Income Cost Income Cost
Product
Including：
Refrigerator 9088215517.67 7356737998.45 7664575851.66 6346869532.77
Freezer
Air-conditioning 11566440523.53 10531949090.31 9781896262.72 8770265668.68
Washing machine 1329017674.88 1088175149.78 753549855.38 607693261.63
Small household
appliances and
1849440139.121616157130.271605989880.271408047190.15
kitchen and
bathroom
Other 189034729.39 132739401.96 231613447.49 192194288.36
Total 225530385.97 140797026.96 177594894.68 119460293.73
Area
Domestic 16662953598.39 14285021891.36 15038808862.28 12912826550.40
Overseas 7584725372.17 6581533906.37 5176411329.92 4531703684.92
Total 24247678970.56 20866555797.73 20215220192.20 17444530235.32
（3）Information related to performance obligations
Types of
Nature of Amount
quality
the goods Main expected to be
Time to perform assurance
Material payment that the responsibl refunded to
Item performance provided by
terms Company e person customers
obligations the Company
promises to or not undertaken by
and related
transfer the Company
obligations
When the
Advance payment
Income customer obtains Product
or payment
from sales the control right Goods Yes No quality
collected according
of goods of relevant assurance
to credit period
commodities
Income Advance payment
When customers
from or payment
obtain related Service Yes No
providing collected according
services
services to credit period
(4)Information related to the transaction price allocated to the remaining performance obligations
At the end of this year the income corresponding to the performance obligations that have been signed but not yet
fulfilled or not yet fully fulfilled is RMB 146656929.43 of which RMB 71158765.31 is expected to be
283Annotations 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 44426066.33 in 2025 and RMB 31072097.79 in 2026.
49. Business tax and extra charges
Item Current Year Last Year
Treatment fund for abandon electrics & electronics 83954161.00 71372020.99
City construction tax 30495241.79 19846779.61
Extra charge for education and local education
23205904.3314548311.46
surcharge
Real estate tax 21776071.72 20864349.97
Stamp duty 20180028.35 16752387.61
Land use tax 7842009.24 7416201.59
Water fund 7621811.71 7714862.00
Other 20049.33 14546.06
Total 195095277.47 158529459.29
50. Sales expense
Item Current Year Last Year
Salary extra charges and labor service expenses 651978914.10 615364927.31
Market support expenses 299976638.54 286466250.64
National three guarantees expense 180682812.32 203466003.55
Shipping and Installation expense 170138310.70 120722067.28
Storage lease expenses 99071460.40 75019986.16
Insurance 34456542.89 14913058.66
Travelling expenses 28183664.81 19660517.01
Business activity expenses 16817763.84 14837137.30
Service 16695232.90 10978315.77
Vehicle expenses 13438130.42 14012267.21
Depreciation expenses 8123955.41 8478387.85
Advertising expenses 6372451.62 2981861.74
Meeting organization expenses 2064895.82 1570396.34
House-lease expenses 2511983.50 2977765.70
Other expenses 40973660.36 37426048.95
Total 1571486417.63 1428874991.47
51. Administration expense
Item Current Year Last Year
Salary and social insurance etc. 233339461.44 226027033.59
284Annotations 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 22633551.78 22139475.42
Amortized intangible assets 17934318.50 18097815.58
Software use 11618336.70 9031826.08
Water and electricity fee 6418796.52 6326879.79
Business activities fee 6202767.07 4538295.97
Property insurance 6081059.31 7095645.48
Safety in production 4936056.08
Domestic travelling fee 3868355.25 2808407.52
Board fees 1799460.97 2816281.49
Office fee 1479151.05 1589370.87
Inspection and authentication fee 994648.51 738557.52
Other expenses 43828831.31 57376883.06
Total 361134794.49 358586472.37
52. R&D expenses
Item Current Year Last Year
Salary and social insurance etc. 288740055.61 237572628.90
Amortized intangible assets 128124567.42 126373792.68
Trial fee of R&D 51097363.34 72478568.76
Cost of mould 27618399.05 26976366.44
Technical development cost 25289565.25 27806672.78
Depreciation 19699982.53 19226603.19
Inspection and authentication fee 17003613.90 14858218.53
Domestic travel expenses 3481605.92 1657904.73
Other expenses 35865338.24 33432791.48
Total 596920491.26 560383547.49
53. Financial expenses
Item Current Year Last Year
Interest expenditure 30088976.40 30470512.88
Less: Interest income 191805963.97 159034499.30
Add: exchange loss 54709775.56 88349559.02
Handling fee expenditure 13550845.06 12041091.12
Discount expenditure -27106971.67 -29168764.27
Interest expense on lease liability 1819942.13 2127420.51
285Annotations 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 -118743396.49 -55214680.04
54. Other income
Item Current Period Last Period
Advanced manufacturing value-added tax deduction 56552366.70
The deferred income is transferred 30780817.58 28913326.92
Enterprise support funds 8719711.00 12463661.00
Financial awards 26985794.09 33430854.69
Immediate VAT refund after collection 9415201.81 15709711.47
Other 2121570.46 1723142.63
Export credit insurance subsidy 2892195.29 3415565.07
Stable job subsidy 2427836.46 4920730.76
Foregn economic and trade developmnet promotion
4884590.00791337.43
funds
Other tax returns 1104918.88 896261.56
Talent incentives and technologycal transformation
723700.00292000.00
subsidies
Total 146608702.27 102556591.53
55. Investment income
Item Current Year Last Year
Long-term equity investment income by equity method 19133884.40 20440095.97
Disposition of the investment income generated by the long-term
22760.28
equity investment
Investment income obtained from the disposal of trading financial
-27576564.086873207.97
assets
Income from financial products 6357755.52 5066526.99
Investment income of other non-current financial assets during
-22489932.70-24385552.13
holding period
The termination of income recognition for financial assets measured
20057997.7214763930.55
by amortized cost
Interest income from debt investment during the holding period 12932690.90 10260629.45
Total 8438592.04 33018838.80
56. Changes in fair value gains
Item Current Period Last Period
Trading financial assets -18424141.04 39663502.48
286Annotations 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
-18424141.0439663502.48
financial instruments
Trading financial liability 9732511.92 -29657252.37
Including: Income of fair value changes from derivative
9732511.92-29657252.37
financial instruments
Other non-current financial assets 16256733.17 14131251.16
Total 7565104.05 24137501.27
57. Credit impairment loss
Item Current Year Last Year
Account receivable bad debt loss -81543127.20 -162588905.74
Other account receivable bad debt loss -78256.93 -1857860.25
Total -81621384.13 -164446765.99
58. Assets impairment loss
Item Current Year Last Year
Loss on inventory valuation -36433848.76 -37286366.52
Impairment loss on intangible assets -18200119.46 -17091365.68
Impairment loss on fixed assets -1347703.96
Impairment loss on contractual assets -500429.38 -770687.90
Total -55134397.60 -56496124.06
59. Income from assets disposal
Item Current Period Last Period
Income from non-current assets disposal 1336229.47 27602023.18
Including: income classify to assets ready for sale
income not classify as to assets ready for sale 1336229.47 27602023.18
Including: Income from fixed assets disposal 1262436.25 15371880.61
Income from intangible assets disposal 12230142.57
Income from the disposal of the right to use the assets 73793.22
Total 1336229.47 27602023.18
60. Non-operation revenue
287Annotations 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)Amount reckoned into
non-recurring
Item Current Period Last Period
gains/losses in
Current Period
Income of penalty 6025864.71 1731499.87 6025864.71
other 8634718.46 7517843.40 8634718.46
Total 14660583.17 9249343.27 14660583.17
61. Non-operating expenditure
Amount reckoned into non-
Item Current Period Last Period recurring gains/losses in
Current Period
Non-current asset retirement
5218522.661467133.155218522.66
losses
Public welfare donation
1106759.241611780.391106759.24
expenditure
Penalty and late fee 16611.86 724538.98 16611.86
Other 1390889.55 4684312.46 1390889.55
Total 7732783.31 8487764.98 7732783.31
62. Income tax expenses
Item Current Year Last Year
Current income tax 32617426.64 15647487.73
Deferred income Tax 3530163.62 -6082140.92
Total 36147590.26 9565346.81
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 80505851.57
Government subsidy and rewards 53964201.06 72305923.02
Cash deposit deposit 37414693.10 28044590.50
Receive compensation 2526647.13 21715660.93
288Annotations 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 6783387.55 6448934.35
Other 9262930.96 9902572.90
Total 109951859.80 218923533.27
2) Cash paid for other activities relating to operation
Item Current Year Last Year
Operating out of cash expenses 695985203.09 603739218.72
Petty cash deposit Cash deposit 64908861.57 52116545.02
Total 760894064.66 655855763.74
(2) Cash related to Investment activities
1) Important cash received related to investment activities
Item Current Period Last Period
Structural deposits 1120000000.00 600000000.00
Large deposit certificate 170000000.00 320000000.00
Total 1290000000.00 920000000.00
2)Important cash payable related to investment activities
Item Current Period Last Period
Structural deposits 1120000000.00 600000000.00
Large deposit certificate 360000000.00 660000000.00
Total 1480000000.00 1260000000.00
3) Cash received from other activities relating to investment
Item Current Period Last Period
Interest income arising from bank savings 188869688.96 161501486.59
Cash deposit 1194923.87 391416.52
Income of forward exchange settlement 20632.41
Other 190064612.83 161913535.52
Total
4) Cash paid for other activities relating to investment
Item Current Period Last Period
Loses of forward exchange settlement 115756169.35 135747164.72
Bid bond refund 500000.00
Total 116256169.35 135747164.72
( 3) Cash related to financing activities
1) Cash received from other activities relating to financing
289Annotations 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 351333854.83
Meiling series (internal) bill discounting
23536567.33
fundraising 19497591.35
Total 370831446.18 23536567.33
2) Cash paid for other activities relating to financing
Item Current Year Last Year
Turn into limited funds 71212010.57 713173457.92
Distribusigned to shareholders at the time of
cancellation 22652073.83
Meiling series (internal) bill discounting
8257294.29
fundraising 14747852.83
Lease liability principal and interest 9788959.46 13924674.35
Service fees of financing intermediary agencies 5205286.50
Payment for B share repurchase 737262.35
Financing lease 175323.88
Intermediary service fee 65600.34 36327.91
Total 89323864.66 770652259.57
3) Changes in liabilities arising from fund-raising activities
Increase this year Decrease this year
Amount at Amount at
Item Non Cash Non Cash
year-begin Cash changes Cash changes year-end
changes changes
Short-term 674143916 1923365052 1469708179.7 1134102419
6301630.00
Loans .67 .15 9 .03
Long-term 148000000 40000000.0 108000000.0
loans .00 0 0
Lease 28190817.
21994649.756697174.8343488292.70
liabilities 78
Lease
10075610.
liabilities due 8667439.78 9788959.46 303447.60 8650642.91
19
within 1 year
Long-term
20211488.
due within 1 46832440.27 26871773.60 40172155.56
89
year
Other
payable- 4978994.1
93176662.2792771248.995384407.44
Dividend 6
payable
290Annotations 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)Increase this year Decrease this year
Amount at Amount at
Item Non Cash Non Cash
year-begin Cash changes Cash changes year-end
changes changes
8856008271923365052176972822.01599140161.847000622.41339797917
Total.69.15743.64
（4）Statement of cash flow in net amount
Financi
Basis for adopting
Item Relevant facts al
net presentation
impact
As a legal entity the Company reports the gains or losses of
Forward foreign The reported
foreign exchange contract delivery to the receipt of other cash
exchange information is more No
related to investment activities and the payment of other cash
delivery intuitive
related to investment activities
As a legal entity the Company reports the current year's change
of restricted funds to the receipt of other cash related to fund-
Restricted funds Rolling reflection No
raising activities and the payment of other cash related to fund-
raising activities
As a legal entity the Company reclassifies the current year's
Meiling change in Meiling (internal) notes discount undue from cash
(internal) notes received from sales of goods service provision/cash paid from
Rolling reflection No
discount fund- purchase of goods and receipt of services to other received cash
raising amount related to fund-raising activities/other paid cash related to fund-
raising activities
（5）It does not involve the current cash receipts and payments but affects the financial situation of the
enterprise or may affect the cash flow of the enterprise in the future
Item Amount incurred this year
Notes endorsement transfer 640130128.86
Total 640130128.86
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
773202644.17277098462.51
activities:
Net profit 55134397.60 11726938.40
Credit impairment loss 81621384.13 164446765.99
Add: provision for depreciation of assets 136755781.73 176173704.39
291Annotations 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
230677716.05223767338.55
assets and depreciation of productive biological assets
Amortization of intangible assets 148644583.21 151246185.43
Depreciation of right-of-use assets 8872309.05 12973556.19
Loss from disposal of fixed assets intangible assets and
-1336229.47-27602023.18
other long term assets (gain is listed with “-”)
Loss from discarding fixed assets as useless (gain is
5081404.151001047.96
listed with “-”)
Loss from change of fair value (gain is listed with “-”) -7565104.05 -24137501.27
Financial expense (gain is listed with “-”) -105187269.88 -38087006.89
Investment loss (gain is listed with “-”) -8438592.04 -33018838.80
Decrease of deferred income tax assets (increase is listed
-774799.73-9142184.15
with “-”)
Increase of deferred income tax liabilities (decrease is
4304963.353080311.85
listed with “-”)
Decrease of inventories (increase is listed with “-”) -322601024.21 -347146382.60
Decrease of operational accounts receivable (increase is
-788860958.90343604791.45
listed with “-”)
Increase of operational accounts receivable (decrease is
2009567881.61674838435.05
listed with “-”)
Other 80505851.57
Net cash flow arising from operation activities 2082343305.04 1465155748.06
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 8391128635.87 6113222069.76
Less: Opening balance of cash 6113222069.76 5840194931.57
Add: Balance at period-end of cash equivalents
Less: Opening balance of cash equivalents
Net increase in cash and cash equivalents 2277906566.11 273027138.19
(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
292Annotations 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 8391128635.87 6113222069.76
Including: cash in stock 12727.56 21243.42
Bank deposits available for payment at any time. 8387387613.83 6113166932.47
Other monetary fund available for payment at any time 3728294.48 33893.87
Cash equivalents
Including: bond investment due within 3 months
Balance of cash and cash equivalents at year-end 8391128635.87 6113222069.76
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
Reasons other than cash and
Item This year's amount
Last year's amount cash equivalents
Judicial freezing of funds due to
27715825.21 6093218.00 Limited use
contract disputes
Guarantee and acceptance bill
410939463.45 712683914.92 Limited use
deposit
Interest receivable 10901601.18 7422576.45 Interest accrual
Total 449556889.84 726199709.37 —
66. Foreign currency
(1) Foreign currency
Ending foreign currency
Item Exchange rate Ending RMB converted balance
balance
Monetary fund — — 127204596.01
Including: USD 2869080.48 7.0827 20320836.32
Euro 4329141.62 7.8592 34023589.82
PKR 758800389.64 0.0251 19045889.78
Won 1255283246.00 0.005514 6921631.82
IDR 20769792551.00 0.000461 9574874.37
PHP 15100323.00 0.1279 1931331.31
AUD 7298581.51 4.8484 35386442.59
Account receivable — — 1067169191.65
Including: USD 116294473.22 7.0827 823678865.48
Euro 9957190.73 7.8592 78255553.39
PKR 410308696.41 0.0251 10298748.28
293Annotations 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)Ending foreign currency
Item Exchange rate Ending RMB converted balance
balance
IDR 92408396216.76 0.000461 42600270.66
AUD 19577081.00 4.8484 94917519.52
AUD 29205109.07 0.1279 3735333.45
Won 2481483655.00 0.005514 13682900.87
Other account receivable — — 346351.02
Including: PKR 5378768.53 0.0251 135007.09
IDR 321790412.15 0.000461 148345.38
PHP 492561.00 0.1279 62998.55
Account payable — — 31543031.60
Including: USD 132118.93 7.0827 935758.75
Euro 13419.32 7.8592 105465.12
PKR 525713593.23 0.0251 13195411.19
IDR 17884398462.83 0.000461 8244707.69
PHP 70849795.53 0.1279 9061688.85
Other account payable — — 14949132.09
Including: PKR 281823229.08 0.0251 7073763.05
IDR 16602444208.24 0.000461 7653726.78
PHP 1732934.00 0.1279 221642.26
(2) Foreign operational entity
The foreign operational entity of the Company was Changhong Ruba Trading Company (Private) Limited mainly
operates in Lahore Pakistan; Recording currency is Pakistan Rupi. CHANGHONG MEILING ELECTRIC
INDONESIA PT mainly operates in Jakarta; recording currency is IDR. CH-Meiling International (Philippines)
Inc mainly operates in Philippines; Recording currency is PHP.
67.Lease
（1）The Company as lessee
Amount incurred this Amount incurred last
Item
year year
Interest expense of lease liabilities 1819942.13 2127420.51
Short-term lease expenses with simplified treatment included in
7381795.962605800.01
current profits and losses
（2）The Company as lessor
1）Operating lease of the Company as lessor
294Annotations 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 which: income related to variable
Item Lease income lease payment not included in lease
receipts
House building 33393088.86
Equipment 3266344.81
Total 36659433.67
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 332685385.50 289045189.33
Depreciation expenses 20217498.97 19595950.42
Other expenses 36033763.45 33999384.05
Domestic travel expenses 3760534.31 1719347.59
Inspection and certification fees 19974458.24 19809891.42
R&D and trial production costs 83379401.74 90075741.11
Amortization of intangible assets 128124567.42 126373792.68
Mold costs 93918099.78 86300051.96
technological development expense 26648055.81 29217316.19
Total 744741765.22 696136664.75
Among them: Expensed R&D
596920491.26560383547.49
expenses
Capitalized R&D expenditure 147821273.96 135753117.26
1.R&D projects eligible for capitalization
Increased amount this year Decreased amount this year
Transfer to
Year-beginning Internal Other Recognized as current Year-end
Item
balance development increase intangible profits and balance
expenditure assets losses
Development
of ice washing 60386906.45 58420870.74 2132644. 59134989.
59672788.12
technology 84 07
295Annotations 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)Increased amount this year Decreased amount this year
Transfer to
Year-beginning Internal Other Recognized as current Year-end
Item
balance development increase intangible profits and balance
expenditure assets losses
Development
of air
41761484.1289400403.2286880.5938042546.
conditioning 93119341.07
27
technology
2219525.
Total 102148390.57 147821273.96 152792129.1 97177535.
43
934
(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
Difference Amount of
between the investment
Basis
disposal price gain/loss
for
Equit and the share of transferred
Point o determi
Share y net assets of the from other
Equity at which ning the
disposa dispo subsidiary at the comprehensive
Subsidiary disposal the point at
l ratio sal consolidate income that
price control which
（%） meth financial related to
is lost the
od statement equity
control
corresponding to investment of
is lost
the disposal of original
the investment subsidiary
Liqui Comple
datio ted the
Jinan Xiangyou Novemb
n & liquidati
Electric Appliances 100.00 er
cance on &
Marketing Co. Ltd 112023
llatio cancella
n tion
296Annotations 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)Difference Amount of
between the investment
Basis
disposal price gain/loss
for
Equit and the share of transferred
Point o determi
Share y net assets of the from other
Equity at which ning the
disposa dispo subsidiary at the comprehensive
Subsidiary disposal the point at
l ratio sal consolidate income that
price control which
（%） meth financial related to
is lost the
od statement equity
control
corresponding to investment of
is lost
the disposal of original
the investment subsidiary
Liqui Comple
datio ted the
Wuhan Meizhirong
n & March liquidati
Electric Appliances 100.00
cance 2023 on &
Marketing Co. Ltd
llatio cancella
n tion
VIII. Equity in other entity
1. Equity in subsidiary
(1) Composition of the enterprise group
Shareholding
Registered Main RegistraBusiness ratio（%) AcquireSubsidiary capital(RM office tion
nature Direct Indire by
B0'000) place place
ly ctly
Investm
Zhongke Meiling Cryogenic Manufacturin 47.45 ent
9673.09 Hefei Hefei
Technology Co. Ltd g and sales 12 establis
hment
Investm
Sichuan Hongmei Intelligent Mianyan Mianya Software ent
500.00100
Technology Co. Ltd. g ng development establis
hment
Investm
Mianyang Meiling Refrigeration Mianyan Mianya Manufacturin ent
10000.00955
Co. Ltd. g ng g and sales establis
hment
Jiangxi Meiling Electric Appliance Jingdezhe Jingdez Manufacturin Investm
5000.0098.751.25
Co. Ltd n hen g and sales ent
297Annotations 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)Shareholding
Registered Main RegistraBusiness ratio（%) AcquireSubsidiary capital(RM office tion
nature Direct Indire by
B0'000) place place
ly ctly
establis
hment
Investm
Hefei Meiling Wulian Technology Software ent
1000.00 Hefei Hefei 100Co. Ltd5） development establis
hment
Enterpri
se
combin
Hefei Meiling Electric Appliances ed
2428.68 Hefei Hefei Sales 100
Marketing Co. Ltd6) under
the
same
control
Enterpri
se
combin
Changhong Meiling Ridian Zhongsha Zhongs Manufacturin 99.03 ed
8300.00
Technology Co. Ltd n han g and sales 61 under
the
same
control
Investm
CHANGHONG MEILING ent
4027.20 Jakapta Jakapta Sales 100ELECTRIC INDONESIAPT8） establis
hment
Investm
ChanghongRubaTradingCompany Pakista ent
8308.98 Pakistan Sales 60（Private）Limited 9) n establis
hment
Enterpri
se
combin
Sichuan Changhong Air- Mianyan Mianya Manufacturin
85000.00 100 ed
conditioner Co. Ltd g ng g and sales
under
the
same
298Annotations 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)Shareholding
Registered Main RegistraBusiness ratio（%) AcquireSubsidiary capital(RM office tion
nature Direct Indire by
B0'000) place place
ly ctly
control
Enterpri
se
combin
Zhongshan Changhong Electric Zhongsha Zhongs Manufacturin ed
33400.009010
Co. Ltd n han g and sales under
the
same
control
Enterpri
se
combin
Hefei Meiling Group Holdings Manufacturin ed not
8000.00 Hefei Hefei 100
Limited g and sales under
the
same
control
Enterpri
se
combin
Meiling Equator Household Manufacturin ed not
2479.32 Hefei Hefei 100
Appliance (Hefei) Co. Ltd g and sales under
the
same
control
Enterpri
se
combin
Manufacturin ed not
Hefei Equator Appliance Co. Ltd 1200.00 Hefei Hefei 100
g and sales under
the
same
control
Investm
Ground Energy Heat Pump Tech. Mianyan Mianya Manufacturin ent
5000.0085
Co. Ltd. g ng g and sales establis
hment
299Annotations 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)Shareholding
Registered Main RegistraBusiness ratio（%) AcquireSubsidiary capital(RM office tion
nature Direct Indire by
B0'000) place place
ly ctly
Investm
Ground Energy Heat Pump Tech. Zhongsha Zhongs Manufacturin ent
4500.0085
(Zhongshan) Co. Ltd. n han g and sales establis
hment
Investm
Guangzhou Changhong Trading Guangzh Guangz ent
100.00 Sales 100
Co. Ltd. ou hou establis
hment
Investm
Hebei Hongmao Daily Appliance Manufacturin 99.03 ent
500.00 Handan Handan
Technology Co. Ltd. g and sales 61 establis
hment
Investm
Anhui Tuoxing Technology Co. Manufacturin 47.45 ent
1000.00 Hefei Hefei
Ltd. g and sales 12 establis
hment
Investm
CH-Meiling.International Philippin Philippi ent
688.91 Sales 100
(Philippines) Inc. es nes establis
hment
Investm
Hefei Changhong Meiling Life ent
5000.00 Hefei Hefei Sales 70
Appliances Co. Ltd. establis
hment
Investm
Anhui Ling'an Medical Equipment Manufacturin 47.45 ent
5000.00 Lu'an Lu'an
Co. Ltd g and sales 12 establis
hment
Note：
1) Zhongke Meiling Cryogenic Technology Co. Ltd. (hereinafter referred to as Zhongke Meiling) the
predecessor of which was Zhongke Meiling Cryogenic Technology Limited Liability Company was established on
29 October 2002 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 made
capital contribution of 42 million yuan (including the assets in specie at the consideration of35573719.70 yuan as
evaluated by Beijing Zhongzheng Appraisal Co. Ltd. with issuance of the Appraisal Report (ZZPBZ(2002)No.029)
and cash contribution of 6426280.30 yuan) accounting for 70% of the aforesaid registered capital and TIPC made
300Annotations 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 mixture
industrial low temperature refrigeration technology) as evaluated by Jingzhongzi Assets Appraisal Co. Ltd. with
issuance of the Appraisal Report (ZZPBZ(2002)No.225) accounting for 30% of the aforesaid registered capital. The
paid-in of the above registered capital has been verified by Huazheng Accounting Firm by issuance of the Assets
Verification Report (HZYZ (2002) No. B157) dated 16 October 2002.In October 2014 according to the relevant provision under the Management Rules on Application of State Owned
Assets by Central Business Organs TIPC transferred the 30% equity interests held by it in Zhongke Meiling
Cryogenic Technology Company Limited to its wholly-owned subsidiary Zhongke Xianxing (Beijing) Assets
Management Co. Ltd (hereinafter referred to as Zhongke Xianxing) which would perform management over the
operating assets of TIPC. Upon consideration and approval at the 37th session of the 7thBOD of Hefei Meiling Co.Ltd it is agreed to waive the pre-emptive right.On 10 August 2015 all the founders signed the Founder Agreement of Zhongke Meiling Cryogenic Technology
Company Limited pursuant to which they decided to change the firm type of Zhongke Meiling Cryogenic
Technology Company Limited to a joint stock company. Based on the net assets of 96 431978.25 yuan as audited
by Xinyong Zhonghe CPA as of 30 June 2015 an aggregate of 65000000 shares have been converted at the
proportion of 1:0.67 which are to be held by the original shareholders according to their respective entitlement. In
case that the net assets exceed registered capital the balance shall be recorded in capital reserve. On 28 August
2015 Xinyong Zhonghe CPA reviewed the registered capital and paid-in thereof in respect of the stock reform and
issued Assets Verification Report (XYZH/2015CDA40161). The Company registered industrial and commercial
information on 11 September 2015.On November 25 2016 the first Extraordinary Shareholders' General Meeting of Zhongke Meiling Cryogenic
Technology Co. Ltd. in 2016 considered and approved the Proposal on the Issuance Plan of the Company; Zhongke
Meiling Company issued 3150000 shares to specific investors by the non-public offering of shares at 1.63 yuan
per share. The current capital increase was verified by the No.［XYZH/2016CDA40294］capital verification report
issued by ShineWing CPA (special general partnership). After the completion of the issuance the share capital of
Zhongke Meiling Company increased to 68150000 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 4th session extraordinary of shareholders general meeting of
2017. Zhongke Meiling offering 490300 shares to specific investors by way of privately placement which has 1.72
yuan per share in amount. The capital increasement has been verified by the No. ［XYZH/2017CDA40324］capital
verification report issued by ShineWing CPA (special general partnership). After the completion of shares placement
stock of the Company increased to 68640300 shares and 66.87% held by the Company.On September 9 2019 the 10th Meeting of the 2ndBOD and the Fourth Extraordinary Shareholders’ Meeting
reviewed and approved the Proposal on the First Stock Issuance Plan of Zhongke Meiling Cryogenic Technology
Co. Ltd. in 2019 (Revised Version) the number of shares to be issued this time does not exceed 3907900 shares
(including 3907900 shares) the issue price is not less than 2.16 yuan per share and the raised funds are expected
301Annotations 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 8441064.00 yuan (including 8441064.00 yuan). After the completion of the additional issue the
company’s share capital increased to 72548200 shares which was verified by [No. XYZH/2020CDA30002]
“Capital Verification Report” issued by Shine Wing Certified Public Accountants (LLP) and the Company’s
shareholding ratio was 63.2683%.On September 16 2022 the Management Committee of China Securities Regulatory Commission issued the Reply
on Approving the Registration of Zhongke Meiling Cryogenics Co.Ltd. to Public Offering of Shares to Unspecified
Qualified Investors (ZJXK [2022] No. 2182) which approved the registration application of Zhongke Meiling to
Public Offering of Shares to Unspecified Qualified Investors. The price of this issue is RMB 16.00/share the initial
number of shares issued is 24182734 and the actual net fund raised is RMB 364573394.95. 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 96730934 shares and the shareholding ratio of the
Company is 47.4512%.
2) Sichuan Hongmei Intelligent Technology Co. Ltd. (hereinafter referred to as Hongmei Intelligent) was
established on Jan. 24 2014. It is a limited company jointly invested by the Company and Mianyang Meiling
Refrigeration Co. Ltd. being approved by the Industrial and Commerce Bureau of Peicheng District Mianyang
City. The company owes registered capital of 5 million yuan including 4.95 million yuan contributed by Changhong
Meiling Company in cash accounted for 99% of the registered capital; Mianyang Meiling Refrigeration Co. Ltd.contributed 50000 yuan in cash with 1% of the register capital occupied. The above mentioned register capital have
been verified by verification report of Chuanjinlai Yanzi No. [2014] B039 issued by Sichuan Jinlai Accounting Firm
Co. Ltd. In July 2016 the shares of Hongmei Intelligent held by the Company has transferred to Sichuan
Changhong AC Co. Ltd. after transferred Changhong AC has 99% equity of Hongmei Intelligent the Company
has no shares of Hongmei Intelligent directly.In October 2023 Changhong Air Conditioning and Mianyang Meiling
transferred their respective shares to the Company. After the transfer the Company held 100% shares of Hongmei
Intelligent.
3) Mianyang Meiling Refrigeration Co. Ltd. (hereinafter referred to as Mianyang Meiling) a limited liability
company jointly set up by the Company and China-tech Meiling Company was founded on Mar. 6 2009. Its
registered capital and paid-in capital were 50 million yuan upon establishment of which the Company invested 45
million 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 50
million yuan in capital of Mianyang Meiling of which 95 million yuan invested by the Company a 95% of total
register capital while 5 million yuan invested by Zhongke Meiling a 5% of total capital occupied. The paid-in
capital has been verified by Capital Verification Report［XYZH/2010CDA6040］ from Chengdu Branch of
Shinewing CPA CO. Ltd. In 2011 Zhongke Meiling entered into “Equity Transfer Agreement” with Jiangxi Meiling
Refrigeration Co. Ltd. 5 percent equity of Mianyang Meiling held by Zhongke Meiling was transferred to Jiangxi
302Annotations 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 Electric
Appliance 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 capital
occupied. The initial investment 10.50 million yuan was received dated 13 May 2011 with 10 million yuan from the
Company and 0.5 million yuan from Mianyang Meiling. Rest of the capital shall be invested fully within 2 years
after the joint ventures established according to capital requirement. The initial investment capital were verified by
the Capital Verification Report [JXKYZi (2011) No. 090] issued from Jingdezhen Xingci CPA Co. Ltd. Second
capital 39.5 million yuan was fully funded on 28 July 2011 the Company contributed 39.375 million yuan while
Mianyang Meiling Company invested 125000 yuan the contributions have been verified by the capital verification
report [Jing Xing Kuai Yan Zi (2011) No.: 134] issued from JDZ Xingci CPA Co. Ltd.
5) Hefei Meiling Wulian Technology Co. Ltd. (hereinafter referred to as Wulian Technology) was
established dated 21 January 2019 with registered capital of 10 million yuan and it is the subsidiary of the Company
with fully-owned establishment. On 19 March 2019 and December 112023 paid in capital is 6 million yuan and 4
million 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) was
the Sino-foreign joint venture jointly set up by original Meiling Group Hefei Meiling Copper Co. Ltd. And
Singapore Kim Shin Development Co. Ltd. which have been originally approved by the [WJMWFZZ (1996)
No.349] of Foreign Trade and Economic Committee of Anhui Province. Its registered capital was US$ 2.92 million
upon 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 0.18
million and real assets of US$ 0.404 million) accounting 20% of registered capital while Singapore Kim Shin
Development Co. Ltd invested US$ 0.876 million (monetary capital) accounting 30% of the registered capital. The
above mentioned investment verified by the verification report of [HSWZ (1995) No. 0737] [HSWZ (1996) No.
328] and [HSWZ (1998) No. 088] from Anhui CPAs Co. Ltd. In July 2008 approved by [HWS (2008) No.53] from
Foreign Trade Economic Cooperation Bureau of Hefei City 30% equity and 20% equity held by Singapore Kim
Shin Development Co. Ltd and Hefei Meiling Copper Co. Ltd respectively transferred to original Meiling Group
Totally. The Company’s register capital came into 24286808.00 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 limited
liability company invested and established by Sichuan Changhong Electric Co. Ltd. (hereinafter referred to as
Sichuan Changhong) and Sichuan Changhong Motor Transport Co. Ltd. (hereinafter referred to as Changhong
Motor Transport Company) on May 25 2016. The registered capital and paid-in capital are 40 million yuan of
which Sichuan Changhong has invested 32 million yuan by monetary capital accounting for 80% of the registered
303Annotations 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 registered
capital. 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 Changhong
invested 1.8 million yuan Guangdong Xiongfeng Electric Co. Ltd. invested 40 million yuan and Kou Huameng
and other 9 natural person shareholders invested 1.2 million yuan at the same time the shareholders' meeting
considered and agreed to transfer the investment of 8 million yuan of Changhong Motor Transport Company to
Sichuan Changhong Venture Investment Co. Ltd the structure of the registered capital after changes was that
Sichuan Changhong invested 33.8 million yuan accounting for 40.72%; Guangdong Xiongfeng Electric Co. Ltd.invested 40 million yuan accounting for 48.19%; Sichuan Changhong Venture Investment Co. Ltd Invested 8
million yuan accounting for 9.64%; Kou Huameng and other 9 natural person shareholders invested 1.2 million
yuan 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 after
the transfer the registered capital of Changhong Ridian was still 83 million yuan the structure of registered capital
after changes was that Sichuan Changhong invested 33.8 million yuan accounting for 40.72%; Guangdong
Xiongfeng Electric Co. Ltd. invested 40 million yuan accounting for 48.19%; Sichuan Changhong Venture
Investment Co. Ltd invested 8 million yuan accounting for 9.64%; Hu Zhiheng and other two natural person
shareholders invested 1.2 million yuan accounting for 1.45%.On October 9 2014 Changhong Ridian held the shareholders meeting which considered and agreed Kou Huameng
to transfer its stock rights of total 250000 yuan which accounts for 0.301% of the Ridian Technology’s registered
capital to Sichuan Changhong Venture Investment Co. Ltd at the cost of 317802 yuan. The other shareholders of
the Ridian Technology waived the right of pre-emption. On December 11 2014 Ridian Technology held the
shareholders meeting which considered and agreed Guangdong Xiongfeng Electric Co. Ltd. to transfer its stock
rights of total 40 million yuan which accounts for 48.19 % of the company's registered capital to Sichuan Changhong
Electric Co. Ltd. at the cost of 43977300 yuan. The other shareholders of the Ridian Technology waived the right
of pre-emption. The structure of registered capital after changes was that Sichuan Changhong invested 73.8 million
yuan accounting for 88.92%; Sichuan Changhong Venture Investment Co. Ltd Invested 8.25 million yuan
accounting for 9.94%; Hu Zhiheng and another natural person shareholder invested 950000 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 to
transferred total 0.18% equity of the Ridian Technology to the Company. After the transfer the Company directly
holds 99.0361% stock rights of Ridian Technology.
304Annotations 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) is
a subsidiary established in Indonesia and jointly invested by Zhongshan Changhong and Sichuan Changhong in
2016 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 Conditioning
subscribed and paid 120000 US dollars in cash accounting for 2% of the registered capital. On 4 July 2017 rests
of 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 a
joint venture established by Zhongshan Changhong Appliances Company Limited and RUBA GENERAL
TRADING FZE Company (“RUBA”) on 5 August 2011 with the approval from Guangdong Development and
Reform Commission by issuance of the Approval Relating to Joint Construction of a Manufacturing and Selling
Platform Project in Pakistan by Zhongshan Changhong Appliances Company Limited (YFGWZ(2011)958). The
resolution of the second extraordinary shareholders' meeting of Zhongshan Changhong in 2016 passed the "Proposal
on the Company's Capital Increase to Changhong Ruba Trading Company (Private) Limited" and agreed that the
company 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 3.84
million US dollars in this capital increase and UAE RUBA Company invested 2.56 million US dollars the shares
held by both sides remained unchanged. After the capital increase the company’s registered capital became 12.4
million US dollars of which Zhongshan Changhong Home Appliances Company Limited invested 7.44 million US
dollars in cash shareholding ratio was 60% UAE RUBA Company invested 4.96 million US dollars in cash and
shareholding ratio was 40%.In 2017 the shareholder meeting of Zhongshan Changhong Electric Co. Ltd. passed the "Proposal on the Compa
ny's Increased Investment in Pakistan Refrigerator Project" agreeing that Zhongshan Changhong and the U
AE RUBA company will jointly increase the capital of ChanghongRuba. the shares held by both parties remain
unchanged. After the capital increase the registered capital of ChanghongRuba is US$13004923 of which Zhon
gshan Changhong contributed US$7802954 in cash holding 60% of the shares and RUBA of the United Arab E
mirates contributed US$5201969 in cash holding 40% of the shares.
10) Sichuan Changhong Air Conditioning Co. Ltd. (hereinafter referred to as Changhong Air Conditioner) a
limited liability company jointly set up by Sichuan Changhong and Changhong Chuangtou was founded on
November 28 2008. Its registered capital was 200 million yuan upon establishment of which Sichuan Changhong
invested 298 million yuan ( 210088900 yuan invested by monetary capital while 87911100 yuan invested by real
material) equivalent to 198 million yuan shares accounting for 99% of the registered capital; and Changhong
Chuangtou invested 3 million yuan accounting for 1% of the registered capital with equivalent of 2 million yuan
shares. The registered capital receipt was verified by the verification report [CGYYZ (2008) No. 177] of Sichuan
Guang yuan Certified Public Accountants Co. Ltd. and [HLTHYZ (2008) No. 12-006] of Sichuan Henglitai
Certified Public Accountants Co. Ltd. In December 2009 the Company obtained 100% equity of Changhong Air-
conditioner by consolidated under the same control. In 2017 the Company increased capital of 650 million yuan to
305Annotations 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 million
yuan from 200 million yuan shareholding still counted as 100%.
11) Zhongshan Changhong Electric Co. LTD (hereinafter referred to as Zhongshan Changhong) was the
original Guangdong Changhong Electric Co. Ltd. and is a limited liability company jointly set up by Sichuan
Changhong 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-estate
from original Zhongshan Sanrong Air-conditioner Co. Ltd. And its patent use-right of 2.7 million yuan accounting
for 90% of the registered capital; Chine Minmetals invested 8 million yuan in monetary capital accounting 10% of
the registered capital. The Company changed its name originally from Guangdong Changhong Electric Co. Ltd in
July 2003. In December 2009 the Company obtained 90% equity of Zhongshan Changhong by consolidated under
same control. 10% equity held by China Minmetals has been transferred by Changhong Air-conditioner on April 11
2010. On 25 May 2014 the Company increased 36 million yuan to Zhongshan Changhong and Changhong AC
increased 4 million yuan. In 2016 according to the overseas development strategy of the Company and the
development and operation needs of the subsidiaries the Company and the wholly-owned subsidiary Changhong
Air Conditioning have increased capital of 64 million yuan to Zhongshan Changhong according to the existing
shareholding ratio among which the capital increase of the Company was 57.6 million yuan and the capital increase
of Changhong Air Conditioning was 6.4 million yuan. After the completion of this capital increase the registered
capital Zhongshan Changhong shall increase to184 million yuan the shareholding ratio of the company and
Changhong Air Conditioning remained unchanged and was still 90% and 10% of which the Company invested
165.6 million yuan accounting for 90% of the registered capital Changhong Air Conditioning invested 18.4 million
yuan accounting for 10% of the registered capital. In March 2020 in accordance with the Company’s overseas
development 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 Changhong
according to the existing shareholding ratios of which the Company increased capital of 135 million yuan
Changhong Air-Conditioning increased capital of 15 million yuan. After the completion of capital increase the
registered capital of Zhongshan Changhong has increased to 334 million yuan. The Company’s and Changhong’s
shareholding 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 33.4
million yuan accounting for 10% of the registered capital.
12) Hefei Meiling Group Holdings Limited (hereinafter referred to as Meiling Group) was the state-owned
company originally approved by People’s Government of Hefei Province and established authorized by SASAC of
Hefei City. On July 14 2008 100% state-owned equity of Meiling Group has freely transferred to Xingtai Holding
by Hefei SASAC. Agreement by the approval of < State-owned property agreement transfer from Meiling Group>
[ HGZCQ (2010) No.34] of Hefei SASAC on April 9 2010 100% state-owned property of Meiling Group after
partial assets and liabilities separated transferred to the Company from Xingtai Holding as amount of 113.2 million
yuan. The re-registration of industrial and commercial procedure for Meiling Group after separated partial assets
306Annotations 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 been
verified by the [AD (2010) YZD No. 016] from Anhui Auding CPAs Co. Ltd.
13) Meiling EquatorHousehold Appliance (Hefei) Co. Ltd. (hereinafter referred to as EquatorHousehold
Appliance) was the Sino-foreign joint venture jointly set up by original Meiling Group and EQUATOR
INVESTMENTS (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 registered
capital was US$ 3 million upon establishment of which Sino company invested US$ 2.25 million in machinery
equipment accounting 75% of the registered capital while foreign company invested US$ 0.5 million in monetary
capital and US$ 0.25 million in intangible assets amounting to US$0.75 million accounting 25% of the registered
capital. The above mentioned investment verified by the verification report of [WYAYZ (2004) No. 135] from
Anhui Yongan CPAs Co. Ltd. In July 2007 approved by [HWJ (2007) No.136] from Foreign Trade Economic
Cooperation Bureau of Hefei City 25% equity held by EQUATOR transferred to Anhui Meiling Electric Co. Ltd.Totally. The Company’s register capital came into 24793200 yuan after transference and was not the joint-venture
any more. 25% equity owned by Anhui Meiling Electric Co. Ltd has been transferred totally to original Meiling
Group in July 2009.
14) Hefei Equator Appliance Co. Ltd. (hereinafter referred to as Equator Appliance) was jointly set up by original
Meiling Group and Yingkaite Appliance on September 26 2007. Its register capital was 12 million yuan among which
original Meiling Group invested 8670600 yuan in monetary capital accounting 72.255% in registered capital;
Equator Appliance invested 3329400 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 Yongan
CPAs Co. Ltd.
15) Hong Yuan Ground Energy Heat Pump Technology Co. Ltd. (hereinafter referred to as Hong Yuan Ground
Energy) was established on 28 August 2015 it is a limited liability company authorized by Administration for
Industry and Commerce of Peicheng District Mianyang Sichuan contributed by Sichuan Changhong Air
Conditioner Co. Ltd (hereinafter referred to as Changhong Air Conditioner) and Hengyou yuan Technology
Development Group Co. Ltd. together. Registered capital amounted as 50 million yuan including 25.5 million yuan
contributed by Changhong Air Conditioner in cash a 51% in total registered capital; Hengyou yuan Technology
Development 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 to
Changhong 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 yuan
Zhongshan) was established and invested on 18 July 2017 with registered capital of 15 million yuan The Hong
Yuan Ground Energy Heat Pump Tech. Co. Ltd contributed 1.5 million yuan with own funds and takes 100% in the
registered capital.In 2018 the shareholders of the Hong yuan Zhongshan decided to increase capital of 30 million
yuan and contributed by the shareholder Hong Yuan Ground Energy; thus registered capital of Hong yuan
Zhongshan up to 45 million yuan
307Annotations 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 established
on 6 Jan. 2017 the wholly-owned subsidiary of Zhongshan Changhong Electric Co. LTD (hereinafter referred to
as 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 million
yuan by own fund and takes 100% in registered capital.
19) Anhui Tuoxing Technology Co. Ltd. (hereinafter referred to as Tuoxing Technology) was established on
20 May 2019 with registered capital of 10 million yuan and it is the subsidiary of Zhongke Meiling with fully-
owned establishment. On May 21 2020 and February 21 2021 Zhongke Meiling invested RMB 5 million with a
total 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 with
registered capital of US$ 1000000 takes 100% of the equity. As of December 312020 the Company has invested
US$ 1000000
21) Hefei Changhong Meiling Life Electric Co. Ltd was established on 24 December 2020 jointly established
by the Company and Ningbo Hongling Enterprise Management Partnership (Limited Partnership). the Company
contributed 35 million yuan representing 70% of the equity while 15 million yuan invested by Ningbo Hongling
Enterprise Management Partnership (Limited Partnership) a 30% takes in the equity. The paid-in capital
contribution 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 established
on 4 September 2021 which is a wholly-owned subsidiary of Zhongke Meiling and registered capital of 10 million
yuan. On June 29 2021 Zhongke Meiling actually contributed 10 million yuan accounting for 100% of the
registered capital. In 2022 the Board of Directors of Zhongke Meiling decided to increase the registered capital by
RMB 40 million. On December 30 2022 the paid-in capital was completed and the registered capital of Ling'an
Medical increased to RMB 50 million.
(2) Major non-wholly-owned subsidiary
Dividend distributed
Balance of
Shareholding Gains/losses attributable to to minority
Subsidiary minority’s interest at
ratio of minority minority in Current Period announced in
period-end
Current Period
Zhongke Meiling 52.5488% 8474284.50 9149568.12 316091458.55
Ground Energy 15.00% 3572482.75 10001298.99
Ridian Technology 0.9639% 20397.33 1356058.15
Meiling Life
30.00%17282369.687527442.5141938054.82
Appliances
(3) Financial information for major non-wholly-owned subsidiary
308Annotations 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)Ending balance
Subsidiary Current Non-current Current Non-current Total
Total assets
assets assets liability liability liabilities
Zhongke 590872333. 734480745. 120874302. 132960772
143608411.3212086470.45
Meiling 93 25 44 .89
256060078.283294314.216616587.216618988
Ground Energy 27234236.22 2400.97
769841.38
Ridian 226657040. 266940994. 125655866. 125948367
40283953.89292501.04
Technology 82 71 42 .46
Meiling Life 621873116. 622486357. 481523383. 482692841
613240.681169458.41
Appliances 90 58 11 .52
（Continued）
Opening balance
Subsidiary Current Non-current Current Non-current Total
Total assets
assets assets liability liability liabilities
Zhongke 649452399. 807871608. 190256989. 206733772.
158419208.8516476782.72
Meiling 30 15 79 51
190767892.208990348.158674964.158889623.
Ground Energy 18222456.16 214658.38
48647109
Ridian 231271013. 273283685. 135113073. 135651967.
42012672.36538894.36
Technology 10 46 14 50
Meiling Life 559068082. 559292964. 452015872. 452015872.
224882.24
Appliances 42 66 49 49
（Continued）
Current Period
Subsidiary Total comprehensive Cash flow from
Operation income Net profit
income operation activity
Zhongke Meiling 302800718.15 16126507.82 16126507.82 -9706149.56
Ground Energy 564892721.56 15842650.38 15842650.38 56039000.87
Ridian Technology 238871773.09 2116223.21 2116223.21 14725141.77
Meiling Life
1660852475.7757607898.9357607898.9377583337.61
Appliances
（Continued）
Last Period
Subsidiary Total comprehensive Cash flow from
Operation income Net profit
income operation activity
Zhongke Meiling 406489091.83 46273692.68 46273692.68 -38010376.20
Ground Energy 316282181.46 6969895.59 6969895.59 20156454.01
309Annotations 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)Last Period
Subsidiary Total comprehensive Cash flow from
Operation income Net profit
income operation activity
Ridian Technology 237989059.17 623419.57 623419.57 -13918903.50
Meiling Life
1419586443.1840576245.8440576245.8467906512.81
Appliances
(4) Major limitation on using enterprise group’s assets and liquidate debts of enterprise group: nil
(5) Offering financial supporting or other supports for structured entity that included in consolidation statement
scope: nil
2. Changes of owner’ equity shares in subsidiary and its impacts: nil
Item Ground Energy Total
Original ratio of shares held 51% 51%
Equity purchased from minority 18627553.47 18627553.47
Stock issue
End-of-term shareholding ratio 85% 85%
Equity purchased from minority 19618000.00 19618000.00
Less: Ratio of the net assets measured by equity ratio while
acquiring the subsidiary
Equity dilution for shares issuance
Balance 990446.53 990446.53
Including: Capital public reserve adjusted 990446.53 990446.53
3. Equity in joint venture or associate enterprise
(1) Major joint venture or associate enterprise
Shareholding Accountingratio（%) treatment forMain
Registe Business investment of
Joint venture or associate enterprise office
r place nature Direc Indire joint venture or
place
tly ctly associate
enterprise
Associated companies：
Sichuan Zhiyijia Network Technology Mianyan Mianya
Sales 50.00 Equity
Co. Ltd. g ng
(2) Financial information for major Joint venture: nil
(3) Financial information for associate enterprise
310Annotations 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)Sichuan Zhiyijia Network Technology Co. Ltd.Item
Balance at year-end/Current Year Balance at year-begin /Last Year
Current assets 2466521759.37 3283851057.02
Including: cash and cash equivalent 364453302.32 14808208.88
Non-current assets 18519147.09 5635867.44
Total assets 2485040906.46 3289486924.46
Current liability 2343467271.81 3185798119.47
Non-current liability 5509063.82 1632200.33
Total liabilities 2348976335.63 3187430319.80
Total of net asset 136064570.83 102056604.66
Minority's interest
Equity attributable to shareholder
136064570.83102056604.66
of parent company
Share of net assets measured by
68032285.4251028302.33
shareholding
Adjustment
--Goodwill 821877.28 821877.28
Unrealized profit of the internal
downstream transactions
Unrealized profit of the internal
upstream transactions
Other
Book value of the equity
51850179.61
investment for associate enterprise
Fair value of equity investment for
the affiliates with consideration
publicly
Operation income 509222643.15 11137539778.84
Financial expenses -34478238.96 -50856868.09
Income tax expenses 5834031.10 -135812.07
Net profit 37428167.10 12126330.11
Other
Other comprehensive income
Total comprehensive income 37428167.10 12126330.11
Dividend received from associate
1629022.64
enterprise in Current Year
311Annotations 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
Balance at year-end/Current
Item Balance at year-begin /Last Year
Year
Associated companies：
Total book value of investment 43891649.05 48534248.89
Total amount measured by shareholding ratio
--Net profit -28901875.68 -30626025.12
--Other comprehensive income 7663003.10 4165076.91
-- Total comprehensive income -21238872.58 -26460948.21
(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 losses
above the quota.
(7) Unconfirmed commitment with joint venture investment concerned: Nil
(8) Intangible liability with joint venture or affiliates investment concerned: Nil
4. Major conduct joint operation: Nil
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
Amount
included Amount Other Related
Accou New subsidy
Year-beginning in non- transferred to chang to
nting amount this Year-end balance
balance operatin other income es this assets/in
subject year
g income this year year come
this year
Deferr
ed Asset-
161013911.912744400.0030780817.58132977494.33
incom related
e
3.Government subsidies included in current profits and losses
Accounting subject Amount incurred this year Amount incurred last year
Other income 59275517.99 73643264.61
Deferred income 144573.97 980007.31
312Annotations 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 42100.00
X. Relevant risks related with f inancial instrument
The major financial instruments of the Company include borrowings account receivables account payable Trading
financial assets Trading financial liability the details of which are set out in Note VI.Risks related to these financial
instruments include exchange risks and interest rate risks. The management of the Company controls and monitors
the 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 negative
impact of risks on the Company's operating performance to the lowest level and maximize the interests of
shareholders and other equity investors. Based on this risk management goal the basic strategy of the Company's
risk management is to identify and analyze all kinds of risks faced by the Company establish an appropriate risk
tolerance bottom line and conduct risk management and timely and reliably supervise all kinds of risks to control
the 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 attaches
great importance to the study of exchange rate risk management policies and strategies. In order to avoid the
exchange rate risk of foreign currency payment and foreign currency collection and settlement income the Company
has signed several forward foreign exchange contracts with banks. The fair value of forward foreign exchange
contracts recognized as derivative financial instruments on December 31 2023 is RMB 7007434.77. Changes in
the fair value of derivative financial instruments have been included in the profit and loss and the relevant contents
of "V. 56 Income from changes in fair value" in this note. In the meantime with the constant change in the share of
the international market if there are risks beyond the control of the Company such as unilateral large changes in
the 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 floating
interest rate expose the Company to cash flow interest rate risk while financial liabilities with fixed interest rate
expose the Company to fair value interest rate risk. The Company decides the relative proportion of fixed interest
rate 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 total
amount of RMB 1133967080.14 ; and the RMB floating-rate loan contracts with a total amount of RMB
148000000.00. The Company's risk of changes in the fair value of financial instruments due to changes in interest
rates is mainly related to fixed-rate bank loans. The Company's risk of cash flow changes of financial instruments
caused by interest rate changes is mainly related to floating interest rate bank loans. The Company pays close
313Annotations 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 of
interest 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 mainly
comes from the loss of the Company's financial assets caused by the failure of the other party to the contract and
the financial guarantee undertaken by the Company including: the book amount of the financial assets recognized
in the consolidated balance sheet; For financial instruments measured at fair value the book value reflects their risk
exposure but not the maximum risk exposure and its maximum risk exposure will change with the change of fair
value in the future. In order to reduce the credit risk the Company set up a special department to determine the
credit line conduct credit approval and implement other monitoring procedures to ensure that necessary measures
are taken to recover overdue creditor's rights. Meanwhile the Company tries to reduce the impact of credit default
of creditor's rights by purchasing credit insurance. In addition the Company reviews the recovery of each single
receivable 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 greatly
reduced. The Company's working capital is deposited in the finance company so the credit risk of working capital
is 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 572545992.76 accounting for 28.88% of the accounts
receivable 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's
method of managing liquidity risk is to ensure that there is enough financial liquidity to fulfill the due debts through
capital 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 that
there is sufficient capital when the debt is due. The management of the Company monitors the use of bank loans
and ensures compliance with the loan agreement. In the meantime it conducts financing negotiations with financial
institutions 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 Co
mpany 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 meth
od to evaluate the effectiveness of hedging.The Company conducts qualified hedging business and applies hedging accounting
314Annotations 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
Hedging adjustment of Impact of hedging
Book value related
accumulated fair value of Hedging effectiveness and accounting on the
to hedged items
Item hedged items included in source of part with invalid Company's
and hedging
the book value of hedged hedging financial
instruments
items recognized statements
Fair value hedging
Exchange rate risk -
Financial expenses -
Forward foreign
Exchange losses;
exchange contracts and 610421375.18 — -90977968.76
Investment income;
unrecognized firm
Change of income fair value
commitments etc.
3.Transfer of financial assets
(1)Classification of transfer modes
Nature of
Amount of transferred Derecognize
Transfer mode transferred Judgment basis of derecognition
financial assets d or not
financial assets
Notes
Not Almost all its risks and rewards
endorsement/
Notes receivable 38674.50 derecognize including the risk of default related to
Notes
d it are retained
discount
Notes
endorsement/ Receivable Derecognize Almost all its risks and rewards have
2505643801.34
Notes financing d been transferred
discount
Accounts Derecognize Almost all its risks and rewards have
Factoring 5401255213.11
receivable d been transferred
Total 7906937688.95
(2)Financial assets that are derecognized due to transfer
Ways of financial assets Amount of financial assets Gains or losses related to
Item
transfer derecognized derecognition
Notes endorsement/Notes
Receivable financing 2505643801.34 -11479703.09
discount
Accounts receivable Factoring 5401255213.11 -20643418.20
Total — 7906899014.45 -32123121.29
(3) Financial assets that continue to be involved in asset transfer
315Annotations 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)Amount of liabilities
Amount of assets formed
Item Mode of asset transfer formed by continuous
by continuous involvement
involvement
Notes endorsement/Notes
Notes receivable 38674.50
discount
Other current liabilities Notes restoration 38674.50
—
Total 38674.50 38674.50
-
On December 31 2023 the book value endorsed by the Company to suppliers for settlement of accounts payable
was RMB 38674.50. The Company believes that it has retained almost all its risks and rewards including the risk
of 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
Fair value at period-end
Items
1st level 2nd level 3rd level Total
I. Continuous fair value
————
measurement
(i) Trading financial assets 39236447.63 39236447.63
1.Financial assets measured at fair
value and whose changes are 39236447.63 39236447.63
included in current gains/losses
Including: Derivative financial
39236447.6339236447.63
assets
(ii) Other non-current financial
105194079.19568945436.29674139515.48
assets
(iii) Receivables financing 1641858740.34 1641858740.34
Total assets continuously
39236447.63105194079.192210804176.632355234703.45
measured at fair value
(iv) Trading financial liability 32229012.86 32229012.86
1. Financial liabilities measured
by fair value and with variation 32229012.86 32229012.86
reckoned into current gains/losses
Including: Derivative financial
32229012.8632229012.86
liability
Total liabilities continuously
32229012.8632229012.86
measured at fair value
2. The basis for determining the market price of continuous and non-continuous first-level fair value
measurement items
316Annotations 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 market
price 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 foreign
exchange options at the end of the period.
3. Qualitative and quantitative information on the valuation techniques used and important parameters for
continuous and non-continuous second-level fair value measurement items
The fair value measurement items are long-term investments in the fund company. For long-term investments
in 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 for
continuous 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. Ltd
and Huishang Bank Co. Ltd. As the unlisted equity instrument the fair value are estimated using a range of
valuation models the assumptions used are not supported by observable market prices or interest rates. We believes
that the fair value and their changes estimated by valuation techniques are reasonable and are the most appropriate
values at the balance sheet date.XII. Related parties and related transaction
(I) Relationship of related parties
1. Controlling shareholder and ultimate controller
Share- Voting
Registra
Controlling shareholder and ultimate Business holding rights ratio
tion Registered capital
controller nature ratio in the in the
place
Company Company
Sichuan Changhong Electric Co. Mianya Manufacture
4616244222.0027.36%27.36%
Ltd. ng and sales
(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 Holding
Group which means that SASAC Mianyang office is the ultimate controller of the Company.
(2) Register capital and change thereof of controlling shareholder
Increase this Decrease
Controlling shareholder Opening balance Ending balance
period this period
Sichuan Changhong Electric Co. Ltd. 4616244222.00 4616244222.00
317Annotations 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
Amount of shares held Shareholding ratio
Controlling shareholder Ratio at Ratio at period-
Ending balance Opening balance
period-end beginning
Sichuan Changhong Electric Co.
281832434.00281832434.0027.36%27.36%
Ltd.
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 Current
Period 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
Associated enterprise of subsidiary Changhong Air-
Chengdu Guigu Environmental Tech. Co. Ltd
conditioner
Associated enterprise of subsidiary Changhong Air-
Hong Yuan Ground Energy Heat Tech. Co. Ltd
conditioner
Associated enterprise of subsidiary Changhong Air-
Sichuan Tianyou Guigu Technology Co. Ltd
conditioner
Associated enterprise of the Company has the same
Sichuan Zhiyijia Network Technology Co. Ltd.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
Associated enterprise of other enterprise that have the same
Sichuan Baiku Technology Co. Ltd
controlling shareholder
Associated enterprise of other enterprise that have the same
Sichuan Hongyu Metal Manufacturing Co. Ltd.controlling shareholder
Control by same controlling shareholder and ultimate
CHANGHONG ELECTRIC MIDDLE EAST FZCO
controller
Control by same controlling shareholder and ultimate
Changhong Europe Electric s.r.o
controller
CHANGHONG (HK) TRADING LIMITED Control by same controlling shareholder and ultimate
318Annotations 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
Control by same controlling shareholder and ultimate
CHANGHONG.ELECTRIC.(AUSTRALIA) PTY.LTD.controller
Control by same controlling shareholder and ultimate
Orion.PDP.Co.Ltd
controller
Control by same controlling shareholder and ultimate
PT.CHANGHONG ELECTRIC INDONESIA
controller
Control by same controlling shareholder and ultimate
Chengdu Changhong Electronic Technology Co. Ltd.controller
Control by same controlling shareholder and ultimate
Guangdong Changhong Electronics Co. Ltd.controller
Control by same controlling shareholder and ultimate
Guangyuan Hongcheng Industrial Co. Ltd.controller
Control by same controlling shareholder and ultimate
Guangyuan Changhong Electronic Technology Co. Ltd.controller
Control by same controlling shareholder and ultimate
Hefei Changhong Industrial Co. Ltd.controller
Control by same controlling shareholder and ultimate
081 Electronic Group Co. Ltd.
controller
Control by same controlling shareholder and ultimate
Mianyang Hongshang Real Estate Co. Ltd.controller
Control by same controlling shareholder and ultimate
Mianyang Huafeng Hulian Technology Co. Ltd.controller
Mianyang Science & Technology City Big Data Technology Control by same controlling shareholder and ultimate
Co. Ltd. controller
Control by same controlling shareholder and ultimate
Sichuan Aichuang Science & Technology Co. Ltd.controller
Control by same controlling shareholder and ultimate
Sichuan Ailink Technology Co. Ltd.controller
Control by same controlling shareholder and ultimate
Sichuan Ansifei Technology Co. Ltd.controller
Associated enterprise of other enterprise that have the same
Sichuan Baiku Technology Co. Ltd
controlling shareholder
Control by same controlling shareholder and ultimate
Sichuan Hongmofang Network Technology Co. Ltd.controller
Control by same controlling shareholder and ultimate
Sichuan Hongwei Technology Co. Ltd.controller
Control by same controlling shareholder and ultimate
Sichuan Hongxin Software Co. Ltd.controller
319Annotations 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
Control by same controlling shareholder and ultimate
Sichuan Huafeng Technology Co. Ltd.controller
Control by same controlling shareholder and ultimate
Sichuan Jiahong Industry Co. Ltd.controller
Control by same controlling shareholder and ultimate
Sichuan Kuaiyidian Electric Appliance Service Chain Co. Ltd
controller
Control by same controlling shareholder and ultimate
Sichuan Qineng Zhongzheng Technology Co. Ltd.controller
Control by same controlling shareholder and ultimate
Sichuan Qiruik Technology Co. Ltd.controller
Control by same controlling shareholder and ultimate
Sichuan Qisai Microelectronics Co. Ltd.controller
Control by same controlling shareholder and ultimate
Sichuan Changhong Package Printing Co. Ltd.controller
Control by same controlling shareholder and ultimate
Sichuan Changhong Power Source Co. Ltd.controller
Control by same controlling shareholder and ultimate
Sichuan Changhong Electronic Products Co. Ltd.controller
Sichuan Changhong Gerun Environmental Protection Tech. Control by same controlling shareholder and ultimate
Co. Ltd. controller
Control by same controlling shareholder and ultimate
Sichuan Changhong International Hotel Co. Ltd.controller
Control by same controlling shareholder and ultimate
Sichuan Changhong Jineng Sunshine Technology Co. Ltd.controller
Control by same controlling shareholder and ultimate
Sichuan Changhong Group Finance Co. Ltd.controller
Control by same controlling shareholder and ultimate
Sichuan Changhong Jijia Fine Co. Ltd.controller
Control by same controlling shareholder and ultimate
Sichuan Changhong Jiahua Information Co. Ltd.controller
Control by same controlling shareholder and ultimate
Sichuan Changhong Jichuang Lithium Technology Co. LTD
controller
Control by same controlling shareholder and ultimate
Sichuan Changhong Precision Electronics Tech. Co. Ltd.controller
Control by same controlling shareholder and ultimate
Sichuan Changhong Minsheng Logistics Co. Ltd.controller
Control by same controlling shareholder and ultimate
Sichuan Changhong Moulding Tech. Co. Ltd.controller
Sichuan Changhong Device Technology Co. Ltd. Control by same controlling shareholder and ultimate
320Annotations 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
Control by same controlling shareholder and ultimate
Sichuan Changhong Network Technology Co. Ltd.controller
Control by same controlling shareholder and ultimate
Sichuan Changhong Property Service Co. Ltd.controller
Control by same controlling shareholder and ultimate
Sichuan Changhong New Energy Technology Co. Ltd.controller
Control by same controlling shareholder and ultimate
Sichuan Changhong Xinwang Technology Co. Ltd.controller
Sichuan Changhong Intelligent Manufacturing Technology Control by same controlling shareholder and ultimate
Co. Ltd. controller
Control by same controlling shareholder and ultimate
Sichuan Changhong Real Estate Co. Ltd.controller
Control by same controlling shareholder and ultimate
Yibin Hongxing Electric Co. Ltd.controller
Control by same controlling shareholder and ultimate
Yuanxin Financial Lease Co. Ltd.controller
Control by same controlling shareholder and ultimate
Changhong International Holdings (Hong Kong) Co. Ltd.controller
Control by same controlling shareholder and ultimate
Changhua Huayi Compressor Co. Ltd.controller
Control by same controlling shareholder and ultimate
Zhongjiu Shining Medical Technology Co. Ltd.controller
(ii) Related transactions
1. Purchasing commodity
Current Year Approved Last year
tradingquota Whether the（In 10 （In 10Related party Content （（In 10 trading inmitthousand thousand
thousand is exceeded
yuan) yuan)
yuan)
Purchasing
Sichuan Changhong Model Technology Co. Ltd. 78955.55 100000.00 No 80947.69
commodity
Purchasing
Changhong Huayi Compressor Co. Ltd. 56361.04 54000.00 Yes 45173.47
commodity
Purchasing
Sichuan Changxin Refrigeration Parts Co. Ltd. 53476.76 53050.78
commodity
Sichuan Changhong Jijia Fine Co. Ltd. Purchasing 47006.81 65000.00 No 45767.42
321Annotations 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)Current Year Approved Last year
tradingquota Whether the（In 10 （（ （In 10 Related party Content In 10 trading inmitthousand thousand
thousand is exceeded
yuan) yuan)
yuan)
commodity
Purchasing
Mianyang Haili Appliance Co. Ltd 36490.77 10109.13
commodity
Purchasing
Guangdong Changhong Electronics Co. Ltd. 34336.31 65000.00 No 33985.13
commodity
Purchasing
Sichuan Aichuang Technology Co. Ltd. 16847.00 20000.00 No 11551.33
commodity
Purchasing
Sichuan Changhong Package Printing Co. Ltd. 11012.12 20000.00 No 13066.04
commodity
Changhong International Holdings (Hong Kong) Purchasing
5500.00 12000.00 No 510.85
Co. Ltd. commodity
Sichuan Changhong Electric Holdings Group Purchasing
3715.78 15000.00 No
Co. Ltd. commodity
Sichuan Changhong Electronic Products Co. Purchasing
2761.52 4000.00 No 2546.79
Ltd. commodity
Purchasing
Sichuan Aoku Technology Co. Ltd. 2758.52 15000.00 No 764.15
commodity
Sichuan Changhong Precision Electronics Tech. Purchasing
2510.14 4500.00 No 2570.75
Co. Ltd. commodity
Purchasing
ChanghongRubaElectricCompany (Private) Ltd. 1234.06 6640.82
commodity
Purchasing
Sichuan Ailian Technology Co. Ltd. 1231.98 5000.00 No 913.94
commodity
Purchasing
Sichuan Zhiyijia Network Technology Co. Ltd. 806.22 8000.00 No 530.29
commodity
Sichuan Changhong Appliance Technology Co. Purchasing
797.63 8000.00 No 768.89
Ltd. commodity
Purchasing
Sichuan Changhong Electric Co. Ltd. 753.21 8000.00 No 417.80
commodity
Purchasing
Hefei Changhong Industrial Co. Ltd. 714.92 8000.00 No 394.74
commodity
Purchasing
Sichuan Hongran Green Energy Co. Ltd. 145.41
commodity
Sichuan Changhong New Energy Technology Purchasing
20.18 15000.00 No 4.31
Co. Ltd. commodity
322Annotations 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)Current Year Approved Last year
tradingquota Whether the（In 10 （In 10Related party Content （（In 10 trading inmitthousand is exceeded thousand thousand
yuan) yuan)
yuan)
Purchasing
081 Electronic Group Co. Ltd. 5.30 8000.00 No
commodity
Purchasing
Sichuan Hongwei Technology Co. Ltd. 4.72 8000.00 No
commodity
Purchasing
Sichuan Changhong International Hotel Co. Ltd. 3.23 15000.00 No 1.17
commodity
Purchasing
Sichuan Jiahong Industrial Co. Ltd. 2.80 15000.00 No 8.25
commodity
Purchasing
Sichuan Hongyu Metal Manufacturing Co. Ltd. 1.47
commodity
Sichuan Kuaiyidian Electric Appliance Service Purchasing
0.18 8000.00 No 0.12
Chain Co. Ltd commodity
Purchasing
Sichuan Changhong Power Source Co. Ltd. 0.18 8000.00 No
commodity
Sichuan Changhong Intelligent Manufacturing Purchasing
0.05 15000.00 No 1.62
Technology Co. Ltd. commodity
Chengdu Guigu Environment Technology Co. Purchasing
22.19
Ltd. commodity
Total 357540.13 309747.67
2. Accept the services
Whethe
r the
Approved trading trading
Related party Content Current Year Last Year
quota limit is
exceed
ed
Sichuan Changhong Minsheng Logistics Accept the
683224664.94 820000000.00 No 616571560.92
Co. Ltd. services
Sichuan Service Exp. Appliance Service Accept the
318330631.13 450000000.00 No 300207670.49
Chain Co. Ltd. services
Sichuan Changhong Moulding Tech. Co. Accept the
40943864.06 100000000.00 No 21996492.76
Ltd. services
Sichuan Hongxin Software Co. Ltd. Accept the 13208179.25 100000000.00 No 10867739.17
323Annotations 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)Whethe
r the
Approved trading trading
Related party Content Current Year Last Year
quota limit is
exceed
ed
services
Sichuan Qiruik Technology Co. Ltd. Accept the
9901242.40 150000000.00 No 8525543.51
services
Accept the
Sichuan Changhong Jijia Fine Co. Ltd. 7801048.46 100000000.00 No 10671879.96
services
Accept the
Sichuan Jiahong Industry Co. Ltd. 5580266.42 150000000.00 No 7421624.51
services
Accept the
Sichuan Changhong Electric Co. Ltd. 3886724.22 100000000.00 No 4882453.51
services
Sichuang Changhong Electric Holdings Accept the
2834748.30 150000000.00 No 1954498.90
Group Co. Ltd. services
Sichuan Changxin Refirgeration Part Co. Accept the
2113071.188889532.68
Ltd. services
Accept the
Sichuan Aichuang Technology Co. Ltd. 1371321.88 150000000.00 No 1069829.75
services
Accept the
Guangdong Changhong Electric Co. Ltd. 1112606.43 100000000.00 No 1223519.69
services
Sichuan Changhong International Hotel Co. Accept the
736015.39 150000000.00 No 351928.96
Ltd. services
Sichuan Changhong Gerun Environmental Accept the
325332.17 150000000.00 No 59745.71
Technology Co. Ltd. services
Accept the
Sichuan Changhong Electric Part Co. Ltd. 275044.71 100000000.00 No
services
Sichuan Changhong Property Service Co. Accept the
145611.44 150000000.00 No 114522.42
Ltd. services
Sichuan Zhiyijia Network Technology Co. Accept the
139286.01 100000000.00 No 155202.18
Ltd. services
Sichuan Changhong Intelligent Accept the
94339.62 150000000.00 No 73130.53
Manufacturing Technology Co. Ltd. services
Accept the
Orion.PDP.Co.ltd 50097.44 150000000.00 No
services
Sichuan Changhong Network Technology Accept the
30517.92 100000000.00 No 24891.99
Co. Ltd. services
Sichuan Ailian Technology Co. Ltd. Accept the 10754.72 150000000.00 No
324Annotations 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)Whethe
r the
Approved trading trading
Related party Content Current Year Last Year
quota limit is
exceed
ed
services
Accept the
Sichuan Hongwei Technology Co. Ltd. 6920.35 100000000.00 No
services
Chengdu Gugu Environment Technology Accept the
124778.76
Co. Ltd. services
Sichuan Changhong Appliance Technology Accept the
81652.50
Co. Ltd. services
Total 1092122288.44 995268198.90
3. Sales of goods
Current Period Last Period
Related party Content (in 10 thousand (in 10 thousand
Yuan) Yuan)
Sichuan Zhiyijia Network Technolgy Co. Ltd. Sales of goods 728895.73 683645.83
CHANGHONG(HK)TRADINGLIMITED Sales of goods 69999.52 35986.86
CHANGHONGELECTRIC(AUSTRALIA)PTY.LTD. Sales of goods 17630.27 16831.82
Changhong International Holdings (Hong Kong) Co. Ltd. Sales of goods 11246.60 10146.95
Changhong Europe Electric s.r.o Sales of goods 10299.23 1376.83
Orion.PDP.Co.ltd Sales of goods 4478.34 5156.73
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
325Annotations 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)Current Period Last Period
Related party Content (in 10 thousand (in 10 thousand
Yuan) 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 1725.97
Changhong Ruba Electric Company (Private) Ltd. Sales of goods 1032.08
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 844638.32 758378.40
4. Providing services
Related party Content Current Year Last Year
Sichuan Changhong Electric Co. Ltd. Providing services 11395693.06 2271754.66
Sichuan Aichuang Technology Co. Ltd. Providing services 4743474.93 -242246.63
Sichuan Service Exp. Appliance Service Chain Co.Provide the services 2315536.37 1977927.75
Ltd.Sichuan Changhong Jiechuang Lithium Battery
Providing services 2277747.12 57269.68
Technology Co. Ltd.Sichuan Changhong Model Technology Co. Ltd. Providing services 1390026.86 339008.37
Changhong Huayi Compressor Co. Ltd. Provide the services 1343950.04 2049559.70
Yuanxin Financing Lease Co. Ltd. Providing services 907791.40 2843225.41
326Annotations 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 627354.91 819840.18
Sichuan Huafeng Technology Co. Ltd. Provide the services 464234.00 442842.31
Sichuan Changhong Minsheng Logistics Co. Ltd. Providing services 379007.97 215817.23
Mianyang Huafeng Hulian Technology Co. Ltd. Providing services 349753.68 88192.89
Sichuan Changhong Network Technology Co. Ltd. Provide the services 268020.00
Sichuan Changhong Property Service Co. Ltd. Providing services 259029.87 171595.00
Sichuan Zhiyijia Network Technology Co. Ltd. Providing services 185395.50 952679.40
Sichuan Changhong Xinwang Technology Co. Ltd Provide the services 128670.00
Sichuan Changhong Jija Fine Co. Ltd. Provide the services 127547.47 83244.16
Sichuan Changhong Appliance Technology Co. Ltd. Providing services 124018.93 93760.05
Sichuan Qineng Zhongzheng Technology Co. Ltd. Providing services 108865.14
Sichuan Qiruik Technology Co. Ltd. Provide the services 95653.62 1332.00
Sichuan Hongwei Technology Co. Ltd. Providing services 69735.85 46490.57
Sichuan Changhong International Hotel Co. Ltd. Providing services 65714.90 34555.53
Sichuan Changhong Real Estate Co. Ltd. Provide the services 45992.16
Sichuan Qisai \Microelectonics Co. Ltd. Providing services 44593.58
Sichuan Changhong Xingwang Technology Co. Ltd. Providing services 16670.00
Chengdu Guigu Environment Technology Co. Ltd. Provide the services 10061.17 263625.23
Sichuan Changhong Electric Part Co. Ltd. Providing services 7200.00 3600.00
Sichuan Changhong Electric Group Co. Ltd. Providing services 6742.60 311964.22
Sichuan Aoku Technology Co. Ltd. Provide the services 4456.25 156191.31
Sichuan Changhong Precision Electronic Technology
Providing services 4320.00 4050.00
Co. Ltd
Hefei Changhong Industry Co. Ltd. Providing services 42.50 3457.50
Sichuan Changxin Refrigeration Part Co. Ltd. Provide the services 229524.66
081 Electronic Group Co. Ltd. Providing services 93124.78
Guangyuan Hongcheng Industry Co. Ltd. Providing services 45871.56
Sichuan Ansifei Technology Co. Ltd. Providing services -2685.82
Total 27750629.88 13355571.70
Businesses between the Company and its connected persons are generally conducted under market operation rules
as if they were the same as other business counterparties. For price of sale or purchase and provision of other labor
service between the Company and its related parties the state pricing is applicable if the pricing do exists; in case
of 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 of
which cannot be determined under the rule of cost plus expense the price shall be determined by both parties by
negotiation.
327Annotations 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
Leasing income in Leasing income
Lessor Lessee Type of assets
Current Period in Last Period
Changhong Sichuan Changhong Moulding Tech. Apartments warehouses
2956810.972666842.20
Meiling Co. Ltd. factories
Changhong warehouse apartment
Sichuan Changhong Jijia Fine Co. Ltd. 950642.38 893341.66
Meiling forklift warehouse
Changhong Sichuan Changhong Minsheng Logistics
apartment office 206115.96 181355.96
Meiling Co. Ltd.Changhong Sichuan Zhiyijia Network Technology
Apartment 188256.88 188256.88
Meiling Co. Ltd.Changhong Sichuan Service Exp. Appliance Service Apartments Offices
162376.19184560.00
Meiling Chain Co. Ltd. Forklifts
Changhong Apartments warehouses
Hefei Changhong Industrial Co. Ltd. 159792.74 611142.15
Meiling forklifts
Changhong
Sichuan Aoku Technology Co. Ltd. Warehouse 43392.81 9467.90
Meiling
Changhong
Sichuan Ailink Technology Co. Ltd. Warehouse 39014.00 51093.26
Meiling
Changhong
Changhong Huayi Compressor Co. Ltd. Warehouse 5811.32
Meiling
Changhong
Sichuan Hongxin Software Co. Ltd. Apartments 4400.00
Meiling
Changhong Sichuan Aichuang Science &
Warehouse 3496.76 1877.88
Meiling Technology Co. Ltd.Changhong Sichuan Changhong Precision
Apartments 1105.00 63600.00
Meiling Electronic Technology Co. Ltd
Changhong Sichuan Changhong Moulding Tech.Workshop 5524818.10 5329999.71
Air-conditioner Co. Ltd.Changhong
Sichuan Changhong Jijia Fine Co. Ltd. warehouse 3662397.40 3601311.97
Air-conditioner
Changhong
Sichuan Changhong Electric Co. Ltd. Workshop 807070.04 1786799.14
Air-conditioner
Changhong Sichuan Changxin Refrigeration Parts
Processing equipment of U 159999.98 206666.67
Air-conditioner Co. Ltd.Changhong Chengdu Guigu Environmental Tech.House and buildings 28403.67 28403.67
Air-conditioner Co. Ltd
Changhong Sichuan Changhong Electric Holding
plant equipment 4.49 19563.84
Air-conditioner Co. Ltd.
328Annotations 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)Leasing income in Leasing income
Lessor Lessee Type of assets
Current Period in Last Period
Ridian Sichuan Changhong Device Technology
2# living area 2147149.80 2147149.80
Technology Co. Ltd.Ridian
Sichuan Qiruik Technology Co. Ltd. plant 47314.29 47314.29
Technology
Zhongshan Sichuan Changhong Device Technology
living area 67200.00 84000.00
Changhong Co. Ltd.Zhongshan Sichuan Changhong Minsheng Logistics
Warehouse Office 44297.16 44297.16
Changhong Co. Ltd.Zhongshan Sichuan Changhong Moulding Tech.living area 34946.67 64800.00
Changhong Co. Ltd.Zhongshan
Guangdong Electric Co. Ltd. living area 14221.47
Changhong
Sichuan Changhong Moulding Tech.Jiangxi Meiling Workshop 822288.36 822288.36
Co. Ltd.Sichuan Aichuang Science &
Jiangxi Meiling Warehouse 9600.00 8914.29
Technology Co. Ltd.Sichuan Changhong Minsheng Logistics
Jiangxi Meiling Workshop 9142.86 9142.86
Co. Ltd.Jiangxi Meiling Sichuan Changhong Jijia Fine Co. Ltd. Workshop 8000.00 7428.57
Jiangxi Meiling Changhong Huayi Compressor Co. Ltd. Workshop 4800.00 4457.14
Jiangxi Meiling Hefei Changhong Industry Co. Ltd. Workshop 1485.71
Total 18098647.83 19079782.54
329Annotations 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
Variable lease
Rental charges for short-term payments not included Interest expenses on lease
Rent paid Increased use right assets
and low-value assets (if any) in lease liabilities liabilities assumed
Lessor Lessee Type of assets measurement (if any)
Amount of Amount of Amount of Amount of Amount of Amount of Amount of Amount of Amount of Amount of
current period previous current previous current period previous current period previous current period previous
period period period period period period
Sichuan
Changhong Changhong
Electronics Air- Rental 143252.58 125548.80
Holding Group conditioner
Co. Ltd.Sichuan
Changhong Changhong
Staff
Electronics Air- 1920.00
dormitory
Holding Group conditioner
Co. Ltd.Sichuan Jiahong Changhong
Staff
Industrial Co. Air- 399176.91 464805.24
dormitory
Ltd. conditioner
Sichuan
Changhong
Changhong VISA
Air- 341178.04 306863.00 34315.04 1534315.05
Electric Co. Laboratories
conditioner
Ltd.
330Annotations 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)Variable lease
Rental charges for short-term payments not included Interest expenses on lease
Rent paid Increased use right assets
and low-value assets (if any) in lease liabilities liabilities assumed
Lessor Lessee Type of assets measurement (if any)
Amount of Amount of Amount of Amount of Amount of Amount of Amount of Amount of Amount of Amount of
current period previous current previous current period previous current period previous current period previous
period period period period period period
Guangdong
Changhong Hong yuan Staff
80355.16104751.85
Electronics Co. Zhongshan dormitory
Ltd.Chengdu
Changhong
Hongmei
Electronic Office 678008.96 603257.97 47945.48 88127.19
Intelligent
Technology
Co. Ltd.Sichuan
Changhong Mianyang Workshop
96779.072831656.002904844.69451647.92378459.2326088842.03701858.10
Electric Co. Meiling leasing
Ltd.Sichuan Jiahong
Mianyang Staff
Industrial Co. 32599.20 34379.52
Meiling dormitory
Ltd.Guangdong Ridian Staff
64994.60132045.20
Changhong Technology dormitory
331Annotations 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)Variable lease
Rental charges for short-term payments not included Interest expenses on lease
Rent paid Increased use right assets
and low-value assets (if any) in lease liabilities liabilities assumed
Lessor Lessee Type of assets measurement (if any)
Amount of Amount of Amount of Amount of Amount of Amount of Amount of Amount of Amount of Amount of
current period previous current previous current period previous current period previous current period previous
period period period period period period
Electronics Co.Ltd.Chengdu
Changhong
Meiling Life
Electric Office 130997.43 22542.67
appliance
Technology
Co. Ltd.Changhong
Huayi Jiangxi Staff
115810.67140483.38
Compressor Meiling dormitory
Co. Ltd.Hefei
Changhong Changhong
Plant 1209008.90 908010.50 953113.00 1019690.31
Industry Co. Meiling
Ltd.Hefei
Changhong
Changhong Sale site 11428.57
Meiling
Industry Co.
332Annotations 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)Variable lease
Rental charges for short-term payments not included Interest expenses on lease
Rent paid Increased use right assets
and low-value assets (if any) in lease liabilities liabilities assumed
Lessor Lessee Type of assets measurement (if any)
Amount of Amount of Amount of Amount of Amount of Amount of Amount of Amount of Amount of Amount of
current period previous current previous current period previous current period previous current period previous
period period period period period period
Ltd.Total 1075394.19 1 367654.70 5025536.86 4416113.16 1487021.44 1486276.73 27623157.08 701858.10
333Annotations 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
Maximum guarantee Completed
Secured party Sponsored party amount Start Date due (Y/N)
(in 10 thousand Yuan) Fulfill
Changhong Meiling Meiling Group 4500.00 2023/5/11 2024/5/11 No
Changhong Meiling Meiling Group 8000.00 2023/7/12 2024/7/11 No
Changhong Meiling Jiangxi Meiling 5000.00 2022/4/18 2023/4/18 Yes
Changhong Meiling Meiling Life Appliances 8000.00 2023/2/22 2024/1/12 No
Changhong Meiling Meiling Life Appliances 2000.00 2023/4/24 2024/4/23 No
Changhong Meiling Meiling Life Appliances 5000.00 2023/4/21 2024/4/21 No
Changhong Meiling Meiling Life Appliances 2000.00 2023/11/3 2024/11/2 No
Changhong Meiling Meiling Life Appliances 10000.00 2023/12/1 2024/11/30 No
Changhong Meiling Meiling Life Appliances 4000.00 2023/12/15 2024/6/4 No
Changhong Meiling Meiling Life Appliances 3000.00 2022/1/26 2023/1/26 Yes
Changhong Meiling Meiling Life Appliances 5000.00 2022/3/16 2023/3/16 Yes
Changhong Meiling Meiling Life Appliances 5000.00 2022/9/22 2023/9/21 Yes
Changhong Meiling Meiling Life Appliances 1000.00 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 4500.00 2022/12/8 2023/10/24 Yes
Changhong Meiling Meiling Life Appliances 5000.00 2022/10/26 2023/10/25 No
Changhong Meiling Meiling Life Appliances 4000.00 2021/12/9 2022/11/2 Yes
Changhong air-
Changhong Meiling 10000.00 2023/1/17 2023/10/11 No
conditioner
Changhong air-
Changhong Meiling 5000.00 2023/1/17 2024/1/16 No
conditioner
Changhong air-
Changhong Meiling 16000.00 2023/2/27 2024/2/26 No
conditioner
Changhong air-
Changhong Meiling 30000.00 2023/3/16 2024/3/16 No
conditioner
Changhong air-
Changhong Meiling 60000.00 2023/3/18 2024/3/18 No
conditioner
Changhong air-
Changhong Meiling 12000.00 2023/4/14 2024/4/13 No
conditioner
Changhong air-
Changhong Meiling 3500.00 2023/6/28 2023/12/28 Yes
conditioner
Changhong air-
Changhong Meiling 1500.00 2023/7/5 2023/12/13 No
conditioner
Changhong air-
Changhong Meiling 8000.00 2022/3/18 2023/3/17 Yes
conditioner
Changhong air-
Changhong Meiling 30000.00 2022/4/18 2023/4/18 Yes
conditioner
334Annotations 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)
Maximum guarantee Completed
Secured party Sponsored party amount Start Date due (Y/N)
(in 10 thousand Yuan) Fulfill
Changhong air-
Changhong Meiling 5000.00 2021/9/24 2022/9/24 Yes
conditioner
Changhong air-
Changhong Meiling 15000.00 2021/12/7 2022/12/6 Yes
conditioner
Changhong Meiling Ridian Technology 4000.00 2023/7/8 2024/7/8 No
Changhong Meiling Ridian Technology 3000.00 2022/3/25 2023/3/25 Yes
Changhong Meiling Ridian Technology 4000.00 2022/7/7 2023/7/7 Yes
Changhong Meiling Ridian Technology 2000.00 2022/10/25 2023/10/24 Yes
Changhong Meiling Ridian Technology 3500.00 2022/11/10 2023/11/9 No
Changhong Meiling Zhongke Meiling 2000.00 2022/9/20 2023/1/27 Yes
Changhong Meiling Zhongke Meiling 5000.00 2022/11/14 2023/6/19 Yes
Changhong Meiling Zhongshan Changhong 6000.00 2023/3/15 2024/3/15 No
Changhong Meiling Zhongshan Changhong 10000.00 2023/5/11 2024/5/10 No
Changhong Meiling Zhongshan Changhong 10000.00 2023/5/30 2024/5/29 No
Changhong Meiling Zhongshan Changhong 7000.00 2023/6/15 2024/6/14 No
Changhong Meiling Zhongshan Changhong 10000.00 2023/5/12 2024/5/12 No
Changhong Meiling Zhongshan Changhong 20000.00 2023/7/3 2024/7/3 No
Changhong Meiling Zhongshan Changhong 5000.00 2023/7/28 2024/7/27 No
Changhong Meiling Zhongshan Changhong 15000.00 2023/8/23 2024/8/23 No
Changhong Meiling Zhongshan Changhong 5000.00 2023/11/2 2024/11/2 No
Changhong Meiling Zhongshan Changhong 2000.00 2022/2/15 2023/2/14 Yes
Changhong Meiling Zhongshan Changhong 18000.00 2022/4/22 2023/4/22 Yes
Changhong Meiling Zhongshan Changhong 6000.00 2022/3/15 2023/3/15 Yes
Changhong Meiling Zhongshan Changhong 10000.00 2022/4/22 2023/4/22 Yes
Changhong Meiling Zhongshan Changhong 7000.00 2022/3/28 2023/3/29 Yes
Changhong Meiling Zhongshan Changhong 13000.00 2022/6/16 2023/6/16 Yes
Changhong Meiling Zhongshan Changhong 20000.00 2022/7/2 2023/7/2 Yes
Changhong Meiling Zhongshan Changhong 5000.00 2022/8/19 2023/8/19 Yes
Changhong Meiling Zhongshan Changhong 15000.00 2022/8/15 2023/8/14 No
Zhongke Meiling Lingan Medical 1000.00 2023/8/25 2024/8/24 No
Zhongke Meiling Lingan Medical 1000.00 2023/10/20 2024/10/20 No
Zhongke Meiling Anhui Tuoxing 500.00 2022/6/27 2023/6/27 Yes
Zhongke Meiling Anhui Tuoxing 1000.00 2023/6/20 2024/6/4 No
Zhongke Meiling Anhui Tuoxing 400.00 2023/8/15 2024/8/14 No
Zhongke Meiling Anhui Tuoxing 1000.00 2023/10/20 2024/10/20 No
Counter
guarrantee：
335Annotations 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)
Maximum guarantee Completed
Secured party Sponsored party amount Start Date due (Y/N)
(in 10 thousand Yuan) Fulfill
Meiling Group Changhong Meiling 4500.00 2023/5/11 2024/5/11 No
Meiling Group Changhong Meiling 8000.00 2023/7/12 2024/7/11 No
Meiling Group Changhong Meiling 5000.00 2022/4/18 2023/4/18 Yes
Meiling Life
Changhong Meiling 8000.00 2023/2/22 2024/1/12 No
Appliances
Meiling Life
Changhong Meiling 2000.00 2023/4/24 2024/4/23 No
Appliances
Meiling Life
Changhong Meiling 5000.00 2023/4/21 2024/4/21 No
Appliances
Meiling Life
Changhong Meiling 2000.00 2023/11/3 2024/11/2 No
Appliances
Meiling Life
Changhong Meiling 10000.00 2023/12/1 2024/11/30 No
Appliances
Meiling Life
Changhong Meiling 4000.00 2023/12/15 2024/6/4 No
Appliances
Meiling Life
Changhong Meiling 3000.00 2022/1/26 2023/1/26 Yes
Appliances
Meiling Life
Changhong Meiling 5000.00 2022/3/16 2023/3/16 Yes
Appliances
Meiling Life
Changhong Meiling 5000.00 2022/9/22 2023/9/21 Yes
Appliances
Meiling Life
Changhong Meiling 1000.00 2022/9/8 2023/9/8 Yes
Appliances
Meiling Life
Changhong Meiling 500.00 2022/8/26 2023/8/26 Yes
Appliances
Meiling Life
Changhong Meiling 4500.00 2022/12/8 2023/10/24 Yes
Appliances
Meiling Life
Changhong Meiling 5000.00 2022/10/26 2023/10/25 No
Appliances
Meiling Life
Changhong Meiling 4000.00 2021/12/9 2022/11/2 Yes
Appliances
Changhong air-
Changhong Meiling 10000.00 2023/1/17 2023/10/11 No
conditioner
Changhong air-
Changhong Meiling 5000.00 2023/1/17 2024/1/16 No
conditioner
Changhong air-
Changhong Meiling 16000.00 2023/2/27 2024/2/26 No
conditioner
Changhong air-
Changhong Meiling 30000.00 2023/3/16 2024/3/16 No
conditioner
336Annotations 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)
Maximum guarantee Completed
Secured party Sponsored party amount Start Date due (Y/N)
(in 10 thousand Yuan) Fulfill
Changhong air-
Changhong Meiling 60000.00 2023/3/18 2024/3/18 No
conditioner
Changhong air-
Changhong Meiling 12000.00 2023/4/14 2024/4/13 No
conditioner
Changhong air-
Changhong Meiling 3500.00 2023/6/28 2023/12/28 Yes
conditioner
Changhong air-
Changhong Meiling 1500.00 2023/7/5 2023/12/13 No
conditioner
Changhong air-
Changhong Meiling 8000.00 2022/3/18 2023/3/17 Yes
conditioner
Changhong air-
Changhong Meiling 30000.00 2022/4/18 2023/4/18 Yes
conditioner
Changhong air-
Changhong Meiling 5000.00 2021/9/24 2022/9/24 Yes
conditioner
Changhong air-
Changhong Meiling 15000.00 2021/12/7 2022/12/6 Yes
conditioner
Ridian Technology Changhong Meiling 4000.00 2023/7/8 2024/7/8 No
Ridian Technology Changhong Meiling 3000.00 2022/3/25 2023/3/25 Yes
Ridian Technology Changhong Meiling 4000.00 2022/7/7 2023/7/7 Yes
Ridian Technology Changhong Meiling 2000.00 2022/10/25 2023/10/24 Yes
Ridian Technology Changhong Meiling 3500.00 2022/11/10 2023/11/9 No
Zhongke Meiling Changhong Meiling 2000.00 2022/9/20 2023/1/27 Yes
Zhongke Meiling Changhong Meiling 5000.00 2022/11/14 2023/6/19 Yes
Zhongshan
Changhong Meiling 6000.00 2023/3/15 2024/3/15 No
Changhong
Zhongshan
Changhong Meiling 10000.00 2023/5/11 2024/5/10 No
Changhong
Zhongshan
Changhong Meiling 10000.00 2023/5/30 2024/5/29 No
Changhong
Zhongshan
Changhong Meiling 7000.00 2023/6/15 2024/6/14 No
Changhong
Zhongshan
Changhong Meiling 10000.00 2023/5/12 2024/5/12 No
Changhong
Zhongshan
Changhong Meiling 20000.00 2023/7/3 2024/7/3 No
Changhong
Zhongshan
Changhong Meiling 5000.00 2023/7/28 2024/7/27 No
Changhong
Zhongshan
Changhong Meiling 15000.00 2023/8/23 2024/8/23 No
Changhong
337Annotations 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)
Maximum guarantee Completed
Secured party Sponsored party amount Start Date due (Y/N)
(in 10 thousand Yuan) Fulfill
Zhongshan
Changhong Meiling 5000.00 2023/11/2 2024/11/2 No
Changhong
Zhongshan
Changhong Meiling 2000.00 2022/2/15 2023/2/14 Yes
Changhong
Zhongshan
Changhong Meiling 18000.00 2022/4/22 2023/4/22 No
Changhong
Zhongshan
Changhong Meiling 6000.00 2022/3/15 2023/3/15 Yes
Changhong
Zhongshan
Changhong Meiling 10000.00 2022/4/22 2023/4/22 Yes
Changhong
Zhongshan
Changhong Meiling 7000.00 2022/3/28 2023/3/29 Yes
Changhong
Zhongshan
Changhong Meiling 13000.00 2022/6/16 2023/6/16 Yes
Changhong
Zhongshan
Changhong Meiling 20000.00 2022/7/2 2023/7/2 Yes
Changhong
Zhongshan
Changhong Meiling 5000.00 2022/8/19 2023/8/19 Yes
Changhong
Zhongshan
Changhong Meiling 15000.00 2022/8/15 2023/8/14 No
Changhong
Lingan Medical Zhongke Meiling 1000.00 2023/8/25 2024/8/24 No
Lingan Medical Zhongke Meiling 1000.00 2023/10/20 2024/10/20 No
Anhui Tuoxing Zhongke Meiling 500.00 2022/6/27 2023/6/27 Yes
Anhui Tuoxing Zhongke Meiling 1000.00 2023/6/20 2024/6/4 No
Anhui Tuoxing Zhongke Meiling 400.00 2023/8/15 2024/8/14 No
Anhui Tuoxing Zhongke Meiling 1000.00 2023/10/20 2024/10/20 No
7. Assets transfer and debt reorganization of related parties
Related party Type Current Period Last Period
Purchase and construction
Sichuan Hongxin Software Co. Ltd. 3192988.66 1254943.40
of fixed assets
Purchase and construction
Sichuan Hongxin Software Co. Ltd. 3061404.42 5668396.24
of fixed assets
Sichuan Changhong Intelligent Manufacturing Purchase and construction
2100406.26536783.19
Technology Co. Ltd. of fixed assets
Sichuan Changhong Electric Holding Group Co. Purchase and construction
1698113.212264150.94
Ltd. of fixed assets
Sichuan Changhong Electric Co. Ltd. Construction of fixed 428600.00 1400000.03
338Annotations 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
Purchase and construction
Sichuan Qiruik Technology Co. Ltd. 288000.00 65575.22
of fixed assets
Sichuan Changhong Jiahua Information Product Purchase and construction
275800.17394336.28
Co. Ltd. of fixed assets
Chengdu Guigu Environment Technology Co. Purchase and construction
50600.00
Ltd. of fixed assets
Purchase and construction
Sichuan Zhiyijia Network Technology Co. Ltd. 40519.46 22384.06
of fixed assets
Mianyang Science & Technology City Big Data Purchase and construction
450367.31
Technology Co. Ltd. of fixed assets
Purchase and construction
Guangdong Changhong Electric Co. Ltd. 1800.00
of fixed assets
Sichuan Aoku Technology Co. Ltd. Sale of fixed assets 121030.34
Total 11136432.18 12179767.01
8.Other
Current Period (in 10 Last Period (in 10 thousand
Name of company Content
thousand Yuan) Yuan)
Yuanxin Financial Lease Co.Financing business 47232.36 40942.87
Ltd.
9. Related transaction with Changhong Finance Company
(1) Saving balance
Interest income from
Name of company Ending balance Opening balance
bank saving in the period
Changhong Meiling Co. Ltd. 2052187201.79 1576180731.79 55927448.19
Sichuan Changhong Air-conditioner Co. Ltd 977689247.58 975985071.65 9442854.40
Zhongshan Changhong Electric Co. Ltd 761905289.07 490792121.80 15139706.91
合肥长虹美菱生活电器有限公司243577856.45218066151.184799892.28
Hefei Changhong Meiling Life Appliances Co.
167225376.64112954489.661888440.19
Ltd.Ground Energy Heat Pump Tech. (Zhongshan)
60561687.3850619272.371352974.65
Co. Ltd.Changhong Meiling Ridian Technology Co.
56655316.2233296010.27200762.90
Ltd.Hebei Hongmao Daily Appliance Technology
6769834.895675.83
Co. Ltd.Hefei Meiling Group Holdings Limited 304516.48 207918.41 10355.85
Anhui Tuoxing Technology Co. Ltd. 7358942.16 84076.99 15330.04
Mianyang Meiling Refrigeration Co. Ltd. 13743.00 21366.13 61.24
339Annotations 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)
Interest income from
Name of company Ending balance Opening balance
bank saving in the period
Ground Energy Heat Pump Tech. Co. Ltd. 13260.69 17.12
Jiangxi Meiling Electric Appliance Co. Ltd. 9667.64 9626.58 41.07
Anhui Ling'an medical equipment Co. Ltd. 825.26 0.08 0.91
Total 4327489669.67 3464999932.49 88783561.58
(2) Discounted bills
Bank acceptance Discounting fees
Bank acceptance
Discounted face Amount of
Discounted amount
amount expenses
Sichuan Changhong Air-conditioner Co. Ltd 1033728549.36 1025823634.69 7904914.67
Changhong Meiling Co. Ltd. 657198568.01 654852590.83 2345977.18
Hefei Changhong Meiling Life Appliances Co.
77674243.3877101568.97572674.41
Ltd.Ground Energy Heat Pump Tech. (Zhongshan)
8650000.008527558.31122441.69
Co. Ltd.Changhong Meiling Ridian Technology Co.
3373116.423338859.9934256.43
Ltd.Zhongshan Changhong Electric Co. Ltd 13291988.00 13185288.15 106699.85
Total 1793916465.17 1782829500.94 11086964.23
(3) Issuance of invoices
Name of company Issuer Bill amount Types
Sichuan Changhong Air-conditioner Sichuan Changhong Group
914629184.69 Bank acceptance
Co. Ltd. Finance Co. Ltd.Zhongshan Changhong Electric Co. Sichuan Changhong Group
327452556.31 Bank acceptance
Ltd. Finance Co. Ltd.Ground Energy Heat Pump Tech. Sichuan Changhong Group
139455669.44 Bank acceptance
(Zhongshan) Co. Ltd. Finance Co. Ltd.Sichuan Changhong Group
Changhong Meiling Co. Ltd. 128561000.00 Bank acceptance
Finance Co. Ltd.Hefei Changhong Meiling Life Sichuan Changhong Group
85660685.29 Bank acceptance
Appliances Co. Ltd. Finance Co. Ltd.Zhongke Meiling Cryogenic Sichuan Changhong Group
34517933.96 Bank acceptance
Technology Co. Ltd. Finance Co. Ltd.Hefei Meiling Group Holdings Sichuan Changhong Group
32688754.50 Bank acceptance
Limited Finance Co. Ltd.Changhong Meiling Ridian Sichuan Changhong Group
4673370.72 Bank acceptance
Technology Co. Ltd. Finance Co. Ltd.Sichuan Changhong Group
Anhui Tuoxing Technology Co. Ltd. 248235.95 Bank acceptance
Finance Co. Ltd.
340Annotations 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. Sichuan Changhong Group
351295.87 Bank acceptance
Ltd. Finance Co. Ltd.Total 1668238686.73
(4) Credit or other financial services
Name of company Transaction content Amount incurred this year
Sichuan Changhong Air
Guarantee letter 3077160.00
Conditioning Co. Ltd
Anhui Tuoxing Technology Co. Ltd Guarantee letter 330000.00
Total 3407160.00
(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
Balance at year-end Balance at year-begin
Item Related party Bad debt Bad debt
Book balance Book balance
provision provision
Account Sichuan Zhiyijia Network Technology Co.
110410176.95
receivable Ltd. 188235530.60 440272480.19 6 8442866.04
Account
CHANGHONG(HK)TRADINGLIMITED 60041559.36
receivable 117003398.60
Account CHANGHONGELECTRIC(AUSTRALIA)
79488591.2124835082.91
receivable PTY.LTD.Account
CHANGHONG(HK)TRADINGLIMITED 67734903.25 3339617.94 53357857.70 1137912.73
receivable
Account Changhong Ruba Electric Company
40856357.0940856357.0941456983.76
receivable (Private) Ltd. 41456983.76
Account
Changhong Europe Electric s.r.o 31860854.17 9350935.09
receivable
Account
Orion.PDP.Co.ltd 13506278.22 18169829.16 96826.72
receivable
341Annotations 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 at year-end Balance at year-begin
Item Related party Bad debt Bad debt
Book balance Book balance
provision provision
Account
Sichuan Aichuang Technology Co. Ltd. 3195467.74
receivable
Account Sichuan Changhong Electric Appliance
900179.64944871.90
receivable Co. Ltd
Sichuan Changhong Intelligent
Account
Manufacturing Technology Co. Ltd 727500.00
receivable
Account
Yuanxin Financing Lease Co. Ltd. 558665.14 545991.98
receivable
Account
Changhong Huayi Compressor Co. Ltd. 519071.54 432726.15
receivable
Account Sichuan Service Exp. Appliance Service
349069.73288033.65
receivable Chain Co. Ltd.Account
Sichuan Huafeng Technology Co. Ltd. 176400.00
receivable
Account Sichuan Changhong Model Technology
176175.5217580.00
receivable Co. Ltd.Account
Sichuan Changhong Real Estate Co. Ltd. 119213.45
receivable
Account Sichuan Changhong Xingwang Technology
112000.00
receivable Co. Ltd.Account Sichuan Changhong Network Technology
96000.00
receivable Co. Ltd.Account Sichuan Changhong Lithium Battery
30600.00
receivable Technology Co. Ltd.Account Mianyang Huafeng Hulian Technology
8800.00
receivable Co. Ltd.Account
Sichuan Changhong Electric Part Co. Ltd. 954.00
receivable
Account Sichan Changhong Electric Holdings
720.00240063.11
receivable Group Co. Ltd.Account CHANGHONG ELECTRIC MIDDLE
755784.47
receivable EAST FZCO
Account
Ground Energy Heat Pump Tech. Co. Ltd. 342203.53 57322.40
receivable
Account
Guangdong Changhong Electric Co. Ltd. 147629.98
receivable
Account
Sichuan Changhong Jijia Fine Co. Ltd. 8204.00
receivable
342Annotations 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 at year-end Balance at year-begin
Item Related party Bad debt Bad debt
Book balance Book balance
provision provision
Account Sichuan Changhong Minsheng Logistics
4305.20
receivable Co. Ltd.Account paid Chengdu Changhong Electric Technology
381126.07
in advance Co. Ltd.Account paid
Sichuan Ailian Technology Co. Ltd. 53247.60 178.22
in advance
Account paid Sichuan Changhong Minsheng Logistics
8396.00
in advance Co. Ltd.Account paid
Hefei Changhong Industry Co. Ltd. 2986.27
in advance
Account paid
Sichuan Changhong Electric Co. Ltd. 19.17
in advance
Account paid Sichuan Changhong Property Service Co.
1613.85
in advance Ltd.Other account Sichuan Service Exp. Appliance Service
313490.4142202.32
receivable Chain Co. Ltd.Sichuan Yizhijia Network Technology Co.Other account
Ltd. 303019.00 200000.00
receivable
Other account Sichuan Changhong Property Service Co.
2904.931291.08
receivable Ltd.Other account
Changhong Huayi Compressor Co. Ltd. 267000.00
receivable
Other account Sichuan Changhong Jiechuang Lithium
129000.00
receivable Battery Technology Co. Ltd.Other account Sichuan Changhong Electric Appliance
60000.00
receivable Co. Ltd
Other account
Sichuan Changhong Jiajia Fine Co. Ltd. 17232.50
receivable
111191911.6
Total 546721919.35 154606151.98 651930640.11
5
2.Payable items
Item Related party Balance at year-end Balance at year-begin
Account payable Sichuan Changhong Moulding Tech. Co. Ltd. 173023852.05 102735433.69
Account payable Changhong Huayi Compressor Co. Ltd. 117609190.18 21947957.79
Account payable Sichuan Aichuang Technology Co. Ltd. 56579812.80 13416872.06
Account payable Sichuan Changhong Jijia Fine Co. Ltd. 32211531.65 48446852.70
343Annotations 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. 23732724.50 12932.00
Account payable Changhong Huayi Compressor Co. Ltd. 17976156.76 14948871.57
Account payable Mianyang Haili Appliance Co. Ltd. 17723765.52 7021268.99
Account payable Sichuan Aoku Technology Co. Ltd. 14614765.93 8194344.79
Account payable Sichuan Changhong Package Printing Co. Ltd. 14430893.66 20626143.74
Account payable Changhong Ruba Electric Company (Private) Ltd. 13195411.19 15632092.38
Changhong International Holdings (Hong Kong) Co.Account payable 8933631.46 17634983.97
Ltd.Account payable Sichuan Changhong Minsheng Logistics Co. Ltd. 4022048.97 1633873.17
Account payable Sichuan Changhong Electronic Products Co. Ltd. 3801344.25 2892627.07
Sichuan Changhong Intelligent Manufacturing
Account payable 2884803.49 5027626.73
Technology Co. Ltd.Account payable Sichuan Changhong Electric Co. Ltd. 2863953.34 24051245.19
Account payable Sichuan Ailian Technology Co. Ltd. 1721318.59 2098307.00
Account payable Guangdong Changhong Electric Co. Ltd. 1554593.15 1152123.68
Account payable PT.CHANGHONG.ELECTRIC INDONESIA 1514130.31
Account payable Sichuan Changhong Device Technology Co. Ltd. 1148884.00 1728816.01
Account payable Sichuan Service Exp. Appliance Service Chain Co. Ltd. 725473.65 754759.55
Account payable Sichuan Hongxin Software Co. Ltd. 451301.89 490315.10
Sichuan Changhong Intelligent Manufacturing
Account payable 270846.58 670179.94
Technology Co. Ltd.Account payable Sichuan Changhong New Energy Technology Co. Ltd. 225732.08 27120.00
Account payable Sichuan Changhong International Hotel Co. Ltd. 146276.00 99873.00
Account payable Chengdu Guigu Environmental Tech. Co. Ltd 57178.00 34717.86
Account payable Sichuan Zhiyijia Network Technology Co. Ltd. 35267.63 8752.84
Account payable Sichuan Qiruik Technology Co. Ltd. 32000.00 6805.20
Account payable Sichuan Hongwei Technology Co. Ltd. 5492.64
Account payable Sichuan Jiahong Industry Co. Ltd. 396.00 300.00
Account payable 081 Electronic Group Co. Ltd. 53026.90
Account payable Sichuan Hongyu Metal Manufacturing Co. Ltd. 14662.40
Account payable Hefei Changhong Industrial Co. Ltd. 13283.74
Account payable Sichuan Changhong Source Co. Ltd. 1831.62
Contract liability Sichuan Zhiyijia Network Technology Co. Ltd. 32073215.34 70485.08
Contract liability Sichuan Changhong Electric Appliance Co. Ltd 353941.29 447676.77
Contract liability CHANGHONG ELECTRIC MIDDLE EAST FZCO 90332.93 92761.51
Contract liability Sichuan Baiku Technology Co. Ltd. 22932.74 71396.02
Contract liability Sichuan Changhong Minsheng Logistics Co. Ltd. 14654.86
Contract liability Sichuan Service Exp. Appliance Service Chain Co. Ltd. 10727.89 10174.94
344Annotations 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. 2646.19 2736.19
Contract liability Sichuan Changhong Moulding Tech. Co. Ltd. 2415.93
Contract liability CHANGHONG(HK)TRADINGLIMITED 908.66 893.51
Changhong International Holdings（Hongkong）Co.Contract liability 713.44
Ltd.Contract liability 081 Electronic Group Co. Ltd. 22.61 22.61
Contract liability Sichuan Aichuang Technology Co. Ltd. 1961333.35
Sichuan Changhong Intelligence Manufacturing
Contract liability 1120221.22
Technology Co. Ltd.Contract liability Chengdu Guigu Environmental Tech. Co. Ltd 171499.69
Contract liability Sichuan Qisai Microelectronic Co. Ltd. 65599.81
Contract liability Yibin Hongxing Electric Co. Ltd. 43362.83
Contract liability Hong Yuan Ground Energy Heat Tech. Co. Ltd 39343.58
Contract liability Sichuan Changhong Source Co. Ltd 27300.88
Contract liability Sichuan Changhong Electric Holding Group Co. Ltd. 4495.58
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. 27418257.97 9129947.19
Lease liability Hefei Changhong Industrial Co. Ltd. 16678869.72 17887878.62
Lease liability Chengdu Changhong Electronic Technology Co. Ltd. 381126.07 10468.90
Other payable Sichuan Changhong Minsheng Logistics Co. Ltd. 132815918.64 111049082.37
Other payable Sichuan Service Exp. Appliance Service Chain Co. Ltd. 82400851.21 80970437.14
Other payable Yuanxin Financial Lease Co. Ltd. 61295062.03 79112334.67
Other payable Sichuan Changhong Moulding Tech. Co. Ltd. 2559981.65 2700501.98
Other payable Changhong Huayi Compressor Co. Ltd. 1903400.00 1898900.00
Other payable Sichuan Aichuang Technology Co. Ltd. 1443020.00 100000.00
Other payable Sichuan Hongxin Software Co. Ltd. 594516.98 160000.00
Other payable Sichuan Qiruik Technology Co. Ltd. 585767.70 479244.80
Other payable Sichuan Zhiyijia Network Technology Co. Ltd. 566063.25 429131.05
Other payable Sichuan Changhong Jijia Fine Co. Ltd. 425492.32 400500.00
Other payable Sichuan Changhong Electric Holding Group Co. Ltd. 393156.00
Other payable Sichuan Aoku Technology Co. Ltd. 260212.20 189859.40
Other payable Sichuan Changxin Refrigeration Parts Co. Ltd. 173907.41 46702.03
Other payable Sichuan Changhong Package Printing Co. Ltd. 139699.18 50000.00
Sichuan Changhong Intelligence Manufacturing
Other payable 109596.00 255867.10
technology Co. Ltd.Other payable Sichuan Changhong Electric Appliance Co. Ltd 58735.52 81251.02
Other payable Sichuan Ailian Technology Co. Ltd. 50000.00 50000.00
Other payable Sichuan Changhong Electronic Products Co. Ltd. 50000.00 50000.00
Other payable Hefei Changhong Industrial Co. Ltd. 50000.00 50000.00
345Annotations 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. 50000.00
Other payable Guangdong Changhong Electric Co. Ltd. 25113.76 38429.50
Sichuan Changhong Precision Electronic Technology
Other payable 734.43
Co. Ltd
Other payable Sichuan Changhong Device Technology Co. Ltd. 29.70
Other payable Sichuan Jiahong Industrial Co. Ltd. 18.00 74316.41
Sichuan Changhong Jineng Sunshine Technology Co.Other payable 500000.00
Ltd.Other payable CHANGHONG(HK)TRADINGLIMITED 29808.54
Total 874494817.89 621251965.88
(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-party
engineering quality appraisal agency is conducting quality appraisal of the objects under the contract the boot-up
and operation test has been initially completed and Zhongke Meiling intends to advocate maintenance of the cold
storage project and the maintenance cost is estimated to be 1720534.42 yuan.As of December 31 2023 apart from the aforementioned lawsuits some of our subsidiaries have been defendants
in certain legal proceedings and plaintiffs in other lawsuits that arise in our daily business operations. Although the
outcome of these contingencies legal proceedings or other lawsuits cannot be determined at present the
management believes that any resulting liabilities will not have a significant negative impact on the financial
condition 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 net
profit realized in individual financial statements of the parent company was RMB 358345033.36. As of December
31 2023 the cumulative undistributed profit in individual financial statements of the parent company was RMB
346Annotations 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 profit
attributable to the owners of the parent company was 741038108.54 yuan. As of December 31 2023 the cumulative
undistributed 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 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 1294109238.10 in individual financial
statements of the parent company.Based on relevant regulations and the provisions of 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 to:
Based on the total share capital of 1029923715 shares as of December 31 2023 the company will distribute a cash
dividend of 3 yuan (including tax) to all shareholders for every 10 shares without bonus shares or conversion of
reserve 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 will
be 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 of
the 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 10000
Refrigerator
Small
freezer Air- Sales in
Item home Other Total
Washing conditioner branch
appliances
machine
Operation income 1058627.40 1173949.73 208366.86 41045.98 57222.07 2424767.90
Including: foreign trade
1049061.001173863.42188693.3613150.122424767.90
income
Income from transactions
9566.3986.3219673.5027895.8657222.07
between divisions
347Annotations 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)
Refrigerator
Small
freezer Air- Sales in
Item home Other Total
Washing conditioner branch
appliances
machine
Operation expenses 1035343.27 1144115.11 202976.31 37262.27 57265.63 2362431.33
Operation profit 23284.13 29834.62 5390.55 3783.71 -43.56 62336.57
Total assets 1370097.26 621813.60 87961.23 23412.66 180358.35 1922926.40
Total liability 811662.26 472775.91 59926.46 8345.70 35134.80 1317575.53
Supplementary
information
Depreciation and
21777.7615049.37369.27738.592.7637932.23
amortization expenses
Capital expenditure 15766.85 11608.52 50.81 1224.86 5.20 28645.84
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） 1455451760.05 1148810442.19
Including：
Within 3 months (3 months included) 1405485686.08 1100472354.68
More than 3 months and less than 6 months (6
40372699.2130307002.60
months included)
Over 6 months and within one year (One year
9593374.7618031084.91
included)
Over one year - within 2 years (2 years
13012239.5831469257.52
included)
Over 2 years - within 3 years (3 years included) 26677206.61 8570995.44
Over 3 years 24592353.91 16093304.66
Total 1519733560.15 1204943999.81
(2) Category of account receivable by bad debt accrual
Amount at year-end
Book balance Bad debt provision
Category
Ratio Ratio Book value
Amount Amount
(%)(%)
Account receivable that withdrawal 876212956.55 57.66 6.15 822298060.28
348Annotations 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)
Amount at year-end
Book balance Bad debt provision
Category
Ratio Ratio Book value
Amount Amount
(%)(%)
bad debt provision by single item 53914896.27
Including: current payment with
803660757.4652.884.92764106877.25
related party 39553880.21
Account receivable with letter of
52483325.933.4652483325.93
credit
Account receivable with single minor
amount but withdrawal single item 20068873.16 1.32 71.56 5707857.10
14361016.06
bad debt provision
Account receivable withdrawal bad
643520603.6042.342.18629497473.44
debt provision by portfolio 14023130.16
Including: account receivable of
engineering customers
Receivables other than engineering
643520603.6042.342.18629497473.44
customers 14023130.16
Total 4.47
1519733560.15100.0067938026.431451795533.72
Continued
Amount at year-begin
Book balance Bad debt provision
Category
Ratio Ratio Book value
Amount Amount
(%)(%)
Account receivable that withdrawal
966219951.3680.1941766187.594.32924453763.77
bad debt provision by single item
Including: current payment with
930280151.8877.2140223800.954.32890056350.93
related party
Account receivable with letter of
28689555.752.3828689555.75
credit
Account receivable with single minor
amount but withdrawal single item 7250243.73 0.60 1542386.64 21.27 5707857.09
bad debt provision
Account receivable withdrawal bad
238724048.4519.8117616043.177.38221108005.28
debt provision by portfolio
Including: account receivable of
engineering customers
Receivables other than engineering
238724048.4519.8117616043.177.38221108005.28
customers
Total 100.00 59382230.76 4.93 1145561769.05
1204943999.81
349Annotations 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 single
receivables and withdrawal bad debt provision by combination shows no risk characteristic of the receivables 9
clients involved.
2) Account receivable withdrawal bad debt provision by portfolio
A.Account receivable of engineering customers
Balance at year-end
Account age
Book balance Bad debt Provision ratio (%)
Within 3 months (3 months included) 616484217.92 p r6o1v6is4io8n4 2.18 1.00
More than 3 months and less than 6 months (6 10991345.13 1099134.51 10.00
Omvoenrt h6s minocnluthdse dan) d w ithin one year (One year 9190814.21 1838162.84 20.00
Oinvcleurd oende) y e ar - within 2 years (2 years included) 2053806.51 1026903.26 50.00
Over 2 years - within 3 years (3 years included) 4531662.28 3625329.82 80.00
Over 3 years 268757.55 268757.55 100.00
Total 643520603.60 14023130.16 —
Continued
Balance at year-begin
Account age
Book balance Bad debt Provision ratio (%)
Within 3 months (3 months included) 201773944.94 p r2o0v1is7io7n3 9.45 1.00
More than 3 months and less than 6 months (6 9319360.50 931936.05 10.00
Omvoenrt h6s minocnluthdse dan) d w ithin one year (One year 5821154.56 1164230.91 20.00
iOnvcleurd oende) y e ar - within 2 years (2 years included) 13330951.73 6665475.87 50.00
Over 2 years - within 3 years (3 years included) 8209879.17 6567903.34 80.00
Over 3 years 268757.55 268757.55 100.00
Total 238724048.45 17616043.17
(3) Bad debt provision of accounts receivable this year
Changes this year
Balance at year-
Category Withdrawal or Resale or write- Balance at year-end
begin Accrual
reversal off
Bad debt
59382230.7610411585.731855790.0667938026.43
provision
Total 59382230.76 10411585.73 1855790.06 67938026.43
(4) Top five receivables collected by arrears party amounting to 812183738.76 yuan in total accounted for
53.44% of the receivables of current year-end the bad debt provision accrual correspondingly amounting to
1965769.40 yuan at year-end balance.
2. Other account receivable
350Annotations 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 61841221.91 29903408.82
Total 61841221.91 29903408.82
Total 82953808.97 88354803.24
(1) Category of other account receivable
Nature Book balance at year-end Book balance at year-begin
Export rebate 41179511.61 12703975.11
Cash deposit 4109987.09 2528111.92
Loans of employee’s pretty cash 10727346.46 7342858.38
Related party not in consolidation statement 5957370.23 5162387.15
Advance money temporary 42202.32
Other 456265.42 2173873.94
Total 62430480.81 29953408.82
(2) By account age
Account age Balance at year-end Balance at year-begin
Within 1 year（Including 1 year） 57173854.18 25568594.52
Including：
Within 3 months (3 months included) 53994269.35 24770884.16
More than 3 months and less than 6 months (6
1161881.37261521.34
months included)
Over 6 months and within one year (One year
2017703.46536189.02
included)
Over one year - within 2 years (2 years included) 1206412.81 1445151.00
Over 2 years - within 3 years (3 years included) 1288721.92 1360620.00
Over 3 years 2761491.90 1579043.30
Total 62430480.81 29953408.82
(3) Category of Other account receivable bad debt reserves
Amount at year-end
Book balance Bad debt provision
Category
Ratio Book value
Amount Amount Ratio (%)
(%)
That withdrawal bad debt provision by
62430480.81100.00589258.900.9461841221.91
single item
In which: other receivables with no
major individual amount but bad debt 15293598.97 24.5 589258.90 3.85 14704340.07
provision accrued individually
Export tax refund 41179511.61 65.96 41179511.61
Related party funds 5957370.23 9.54 5957370.23
351Annotations 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)
Amount at year-end
Book balance Bad debt provision
Category
Ratio Book value
Amount Amount Ratio (%)
(%)
Bad debt provision accrued by
portfolio
In which: other receivables accrued by
aging portfolio
Total 62430480.81 100.00 589258.90 0.94 61841221.91
Continued
Balance at year-begin
Book balance Bad debt provision
Category
Ratio Ratio Book value
Amount Amount
(%)(%)
That withdrawal bad debt provision
29953408.82100.0050000.000.1729903408.82
by single item
In which: other receivables with no
major individual amount but bad debt 12044844.24 40.21 50000.00 0.42 11994844.24
provision accrued individually
Export tax refund 12703975.11 42.41 12703975.11
Related party funds 5204589.47 17.38 5204589.47
Bad debt provision accrued by
portfolio
In which: other receivables accrued by
aging portfolio
Total 29953408.82 100.00 50000.00 0.17 29903408.82
1) Accrual of bad debt provision for other receivables
First stage Second stage Third stage
Expected Expected credit loss Expected credit loss for
Bad debt provision credit loss in for the whole the whole duration Total
next 12 duration (no credit (credit impairment has
months impairment) occurred)
Balance as at 1 Jan. 2023 50000.00 50000.00
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
352Annotations 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)
First stage Second stage Third stage
Expected Expected credit loss Expected credit loss for
Bad debt provision credit loss in for the whole the whole duration Total
next 12 duration (no credit (credit impairment has
months impairment) occurred)
-- Reversal to the first stage
Provision in Current Year 539258.90 539258.90
Reversal in Current Year
Conversion in Current Year
Write off in Current Year
Other change
Balance as at 31 Dec. 2023 589258.90 589258.90
(4)Bad debt provision for other receivables accrued recovered or reversed this year
Amount of change this year
Year-
Category Recovery or Write-off or Year-end
beginning Accrual Other
reverasl cancellation
Bad debt
provision 50000.00 539258.90 589258.90
Total 50000.00 539258.90 589258.90
(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
Proportion in
Bad debt
total other
Balance at year- provision
Name Nature Account age receivables
end Balance at
ending balance
year-end
(%)
Unit I Export rebates 41179511.61 Within 1 year 65.96
Employee petty Within 1 year 2-3
Unit II 2639979.48 4.23
cash years Over 3 years
Employee petty
Unit III 2439621.17 Within 1 year 3.91
cash
Employee petty
Unit IV 1021194.03 Within 1 year 1.64
cash
Employee petty Within 1 year 2-3
Unit V 669693.08 1.07
cash years Over 3 years
Total 47949999.37 76.81
(7) There are no receivables involving government subsidies
3. Long-term equity investments
353Annotations 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
Impair
Impairm Book
Book balance ment Book value Book balance
ent loss value
loss
1756435121784610068.21784610
Investment in subsidiaries: 1756435120.88
0.888068.28
101040690.7174935
Investment in associates: 101040690.02 71749356.05
026.05
1857475811856359424.31856359
Total 1857475810.90
0.903424.33
354Annotations 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
Provision for
Increased in Decreased in Current impairment Ending balance of
Invested enterprise Opening balance Ending balance
Current Period Period losses in the impairment
Period
Zhongke Meiling Cryogenic Technology Co.
42652000.0042652000.00
Ltd
Mianyang Meiling Refrigeration Co. Ltd. 95000000.00 95000000.00
Hefei Meiling Electric Appliances Marketing
54900000.0054900000.00
Co. Ltd
Zhongshan Changhong Electric Co. Ltd 304856419.37 304856419.37
Sichuan Changhong Air-conditioner Co. Ltd 955600437.79 955600437.79
Hefei Meiling Group Holdings Limited 113630000.00 113630000.00
Jiangxi Meiling Electric Appliance Co. Ltd. 79000000.00 79000000.00
Changhong Meiling Ridian Technology Co.
91082111.1291082111.12
Ltd.Hefei Meiling Wulian Technology Co. Ltd. 6000000.00 4000000.00 10000000.00
CH-Meiling.International (Philippines) Inc. 6889100.00 6889100.00
Hefei Changhong Meiling Life Appliances Co.
35000000.0035000000.00
Ltd.Sichuan Hongmei Intellgence Technology Co.
22725052.6022725052.60
Ltd.Total 1784610068.28 26725052.60 54900000.00 1756435120.88
(3) Investment in associates
Invested enterprise Opening Changes in Current Period Ending balance Ending
355Annotations 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 Neg Adjustme balance
Cash Provisi
ativ Investment nt for of
dividend or on for Ot
Additional e income other Other equity impairme
profit impair he
Investment Inve recognized comprehe change nt
announced to ment r
stm under equity nsive
issued loss
ent income
Hefei Xingmei Assets Management
19899176.4433680.3414139256.78
Co. Ltd. 5793600.00
Sichuan Zhiyijia Network
18633005.731629022.6468854162.70
Technology Co. Ltd. 51850179.61
Sichuan Hongyuan Venture
18000000.0047270.5418047270.54
Investment Partnership(LP)
Total 18000000.00 18713956.61 7422622.64
71749356.05101040690.02
356Notes 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
Current Period Last Period
Item
Income Cost Income Cost
Main business 9149147263.72 8292274506.85 6895525518.29 6249708036.25
Other business 459251266.85 402474977.16 502803114.71 470539689.79
Total 9608398530.57 8694749484.01 7398328633.00 6720247726.04
(2)The decomposition information of operation income and operation cost
Current Year Last Year
Type
Income Cost Income Cost
Product
Including：
Refrigerator 7620019850.61 6954362367.45 5993436795.13 5524684113.61
Freezer
Air-conditioning 9284414.16 9279679.94 5518915.06 5357940.73
Washing machine 1298981507.21 1126741590.47 664313682.51 600074230.97
Small household
appliances and
220861491.74201890868.99231527349.84118997813.34
kitchen and
bathroom
Other products 728775.75 593937.60
Other businesses 459251266.85 402474977.16 502803114.71 470539689.79
Area
Domestic 5565648590.03 5282171820.60 5098312560.63 4712738010.07
Overseas 4042749940.54 3412577663.41 2300016072.37 2007509715.97
Total 9608398530.57 8694749484.01 7398328633.00 6720247726.04
5. Investment income
Item Current Year Last Year
Long-term equity investment income by equity method 18713956.61 11196374.66
Investment income obtained from the disposal of trading financial
-18582366.11-563287.28
assets
Income from financial products 756009.30
Long-term equity investment income by Cost method 168821072.56 47938347.93
Investment income of other non-current financial assets during
12932690.9010260629.45
holding period
The termination of income recognition for financial assets measured -6157758.00 -4767753.29
357Notes 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
Interest income from debt investment during the holding period 14558956.62 14763930.55
Total 190286552.58 79584251.32
XIX.Supplementary information for f inancial 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
1336229.47
which assets impairment provision is made)
Government subsidies recognized in current gain and loss(excluding
those closely related to the Company’s business and granted under the 80683233.76
state’s policies)
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 assetstrading financial -90853412.77
liability and financial assets available-for-sale excluded effective
hedging business relevant with normal operations of the Company
Reversal of the account receivable depreciation reserves subject to
4547547.09
separate impairment test
Other non-operating income and expenses other than the above 6927799.86
Subtotal 2641397.41
Less: impact on income tax -377847.36
Impact on minority shareholders’ equity (post-tax) 11396138.62
Total -8376893.85 —
2. Return on equity and earnings per share
Weighted average return on Earnings per share/EPS (RMB/Share)
Profit during the report period
equity Basic EPS Diluted EPS
Net profit attributable to ordinary
13.49%0.71950.7195
shareholders of the parent company
Net profit attributable to ordinary
shareholders of the parent company
13.64%0.72760.7276
after deduction of the non-recurring
gains/losses
Chairman: Wu Dinggang
Changhong Meiling Co. Ltd.March 30 2024
358
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