Changhong Meiling Co. Ltd.The First Quarterly Report of 2021

Changhong Meiling Co. Ltd.

The First Quarterly Report of 2021

April 2021

Changhong Meiling Co. Ltd.The First Quarterly Report of 2021

Section I. Important Notes

Board of Directors and the Supervisory Committee of Changhong Meiling Co. Ltd. (hereinafter referred to as the

Company) and its directors supervisors and senior executives should guarantee the reality accuracy and

completion of the quarterly report there are no any fictitious statements misleading statements or important

omissions carried in this report and shall take legal responsibilities individual and/or joint.Mr.Wu Dinggang person in charge of the Company Mr. Pang Haitao person in charger of accounting works and

Mr.Yang Jun person in charger of accounting organ (accounting officer) hereby confirm that the Financial Report

of this Quarterly Report is authentic accurate and complete.Prompt of non-standard audit opinion

□ Applicable √ Not applicable

The First Quarterly Report of 2021 has not been audited.

All Directors are attended the Board Meeting for Quarterly Report deliberation.

Changhong Meiling Co. Ltd.The First Quarterly Report of 2021

Section II. Basic situation of the Company

I. Main accounting data and financial indexes

Whether it has retroactive adjustment or re-statement on previous accounting data or not

□Yes√ No

This Period Same period of last year

Changes of this period over same

period of last year

Operating income (RMB) 4130121476.44 2281578242.02 81.02%

Net profit attributable to shareholders of

the listed company (RMB)

5297826.42 -270008124.67 101.96%

Net profit attributable to shareholders of

the listed company after deducting

non-recurring gains and losses (RMB)

-26469858.74 -282956643.92 90.65%

Net cash flow arising from operating

activities (RMB)

-968522457.80 -1003451132.76 3.48%

Basic earnings per share (RMB/Share) 0.0051 -0.2585 101.97%

Diluted earnings per share (RMB/Share) 0.0051 -0.2585 101.97%

Weighted average ROE 0.11% -5.54% 5.65 percentage points increased

End of this period End of last period

Changes of this period-end over

same period-end of last year

Total assets (RMB) 16470661999.78 16103355454.46 2.28%

Net assets attributable to shareholder of

listed company (RMB)

4853488708.14 4854173682.43 -0.01%

Items of non-recurring gains and losses

√ Applicable □ Not applicable

In RMB

Item

Amount from year-begin to

period-end

Note

Gains/losses from the disposal of non-current asset (including the

write-off that accrued for impairment of assets)

-489522.55

Found in “Asset disposal income”

“Non-operating expenditure”

Governmental subsidy reckoned into current gains/losses (not

including the subsidy enjoyed in quota or ration according to

national standards which are closely relevant to enterprise’s

business)

13160582.16 Found in “Other income”

Losses/gains from changes of fair values occurred in holding

trading financial assets derivative financial assets trading

21063671.48

Found in “Investment income” and

“Changes in fair value gains/losses”

Changhong Meiling Co. Ltd.The First Quarterly Report of 2021

financial liabilities and derivative financial liabilities and

investment income obtaining from the disposal of trading

financial assets derivative financial assets trading financial

liability derivative financial liability and other debt investment

excluded effective hedging business relevant with normal

operations of the Company

Other non-operating income and expenditure except for the

aforementioned items

4032625.02

Found in “Non-operating income”

“Non-operating expenditure”

Less: impact on income tax 39843.29

Impact on minority shareholders’ equity (post-tax) 5959827.66

Total 31767685.16 --

Concerning the extraordinary profit (gain)/loss defined by Q&A Announcement No.1 on Information Disclosure for Companies

Offering Their Securities to the Public --- Extraordinary Profit/loss and the items defined as recurring profit (gain)/loss according to

the lists of extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their

Securities to the Public --- Extraordinary Profit/loss explain reasons

□ Applicable √ Not applicable

The Company has no items defined as recurring profit (gain)/loss according to the lists of extraordinary profit (gain)/loss in Q&A

Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public --- Extraordinary Profit/loss

in the period.II. Total number of shareholders at the end of this report period and top ten shareholders

1. Total number of common shareholders and preference shareholders with voting rights recovered and top

ten common shareholders

In shares

Total number of common shareholders at the end of

report period

85066

Total preference shareholders

with voting rights recovered at

end of reporting period (if

applicable)

0

Top ten shareholders

Shareholder’s name

Nature of

shareholder

Proportion

of shares

held

Amount of

shares held

Amount of

lock-up shares

held

Number of share

pledged/frozen

State of

share

Amo

unt

Sichuan Changhong Electric Co. Ltd.State-owned legal

person

23.79% 248457724 0 - -

Hefei Industrial Investment Holding (Group) Co.Ltd.State-owned legal

person

4.58% 47823401 0 - -

Changhong Meiling Co. Ltd.The First Quarterly Report of 2021

Changhong (Hong Kong) Trade Co. Ltd.

Foreign legal

person

2.59% 27077797 0 - -

Ma Guobin

Domestic nature

person

2.23% 23333500 0 - -

CAO SHENGCHUN

Foreign nature

person

1.41% 14766086 0 - -

Caitong Fund- Ningbo Bank-Haitong Xingtai

(Anhui) Emerging Industry Investment Fund

(Limited Partnership)

Domestic

non-state-owned

legal person

1.03% 10733452 0 - -

Securities A/C for Repurchase under the name of

Changhong Meiling Co. Ltd.

Domestic general

legal person

0.80% 8388888 0 - -

Philip Securities (H.K.) Co. Ltd.

Foreign legal

person

0.60% 6296913 0 - -

Gu Jie

Domestic nature

person

0.41% 4285700 0 - -

Wang Yumei

Domestic nature

person

0.41% 4267600 0 - -

Top ten shareholders with unrestricted shares held

Shareholder’s name

Amount of

unrestricted shares

held

Type of shares

Type Amount

Sichuan Changhong Electric Co. Ltd. 248457724 RMB ordinary shares 248457724

Hefei Industrial Investment Holding (Group) Co. Ltd. 47823401 RMB ordinary shares 47823401

Changhong (Hong Kong) Trade Co. Ltd. 27077797

Domestically listed

foreign shares

27077797

Ma Guobin 23333500 RMB ordinary shares 23333500

CAO SHENGCHUN 14766086

Domestically listed

foreign shares

14766086

Caitong Fund- Ningbo Bank-Haitong Xingtai (Anhui) Emerging Industry

Investment Fund (Limited Partnership)

10733452 RMB ordinary shares 10733452

Securities A/C for Repurchase under the name of Changhong Meiling

Co. Ltd.

8388888

Domestically listed

foreign shares

8388888

Philip Securities (H.K.) Co. Ltd. 6296913

Domestically listed

foreign shares

6296913

Gu Jie 4285700 RMB ordinary shares 4285700

Wang Yumei 4267600 RMB ordinary shares 4267600

Explanation on

associated

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. (Hereinafter referred

Changhong Meiling Co. Ltd.The First Quarterly Report of 2021

relationship

among the

aforesaid

shareholders

to as Sichuan Changhong); except the shares of the Company directly held by Hong Kong Changhong 6296913

shares of B-stock are also held through Phillip Securities (Hong Kong) Co. Ltd. the foregoing shareholders

constitute persons of uniform action. There existed no associated relationship or belong to the concerted actors as

specified in the Measures for the Administration of Information Disclosure of Shareholder Equity Changes of

Listed Companies among Sichuan Changhong Hong Kong Changhong and other top 6 shareholders (exceptPhilip Securities (H.K.) Co. Ltd.); “Caitong Fund- Ningbo Bank-Haitong Xingtai (Anhui) Emerging IndustryInvestment Fund (Limited Partnership) ” refers to the products of Caitong Fund Management Company subscribe

for privately placement of 2016; The company neither knows whether there is any association among other

shareholders nor knows whether other shareholders belong to the persons acting in concert that is stipulated in

the “Administrative Measures on Information Disclosure of Changes in Shareholding of Listed Companies”.

Explanation on

top ten common

shareholders

involving

margin business

(if applicable)

As of March 31 2021 among the top 10 common shareholders Ma Guobin holds 22514000 shares of the

Company through customer credit trading secured account of Founder Securities Co. Ltd. and 819500 shares

hold through common securities account thus 23333500 shares of the Company are held in total. The

shareholder-Gu Jie holds 4285700 shares of the Company through customer credit trading secured account of

China Merchants Securities Co. Ltd.

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.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.

2. Total shareholders with preferred stock held and shares held by top ten shareholders with preferred

stock held

□ Applicable √ Not applicable

Changhong Meiling Co. Ltd.The First Quarterly Report of 2021

Section III. Significant Events

I. Particulars about material changes in items of main accounting statement and financial

index and explanations of reasons

√ Applicable □Not applicable

(i) Changes and reasons of items in balance sheet

In RMB

Item Ending balance Opening balance

Changes

ratio

Item

Money funds 4408281323.05 6594786789.98 -33.16%

Mainly due to the purchase of financial products and net cash

outflow from operating activities in the Period

Trading financial assets 1028680651.61 47242339.07 2077.45% Mainly due to the purchase of financial products in the Period

Accounts receivable 1778186759.73 1130275780.66 57.32% Mainly due to the increase of operation revenue in the Period

Advance payment 58012556.17 30105373.40 92.70%

Mainly due to the advance purchase payment increased in the

Period

Inventory 2667019319.18 1715354951.43 55.48% Mainly due to the gain in yield in the Period

Right-of-use asset 22258350.11 - 100.00%

Mainly due to the implementation of new leasing standards in

the Period

Employee compensation

payable

198470767.14 290321776.05 -31.64% Mainly due to the payment of wages in the Period

Taxes payable 61038028.05 89682433.90 -31.94%

Mainly due to the VAT retention credit from subsidiary

Changhong Air-conditioner increased in the Period

Non-current liabilities due

within one year

115715827.98 407825150.74 -71.63%

Mainly due to the repayment of long-term loans due within one

year in the Period

Other current liabilities 34135600.19 22923698.73 48.91%

Mainly due to the taxes on contract liabilities increased in the

Period

Long term loan 488518705.55 188231439.30 159.53% Mainly due to the long-term loans increased in the Period

Lease liability 12940572.85 - 100.00%

Mainly due to the implementation of new leasing standards in

the Period

Deferred income tax

liabilities

6268762.89 10575582.33 -40.72%

Mainly due to the reversal of deferred income tax liabilities in

the Period

(ii) Changes and reasons of items in profit statement

In RMB

Changhong Meiling Co. Ltd.The First Quarterly Report of 2021

Item

Amount at the

period

Amount at the

same period of last

year

Changes

ratio

Reasons of changes

Operation revenue

4130121476.44 2281578242.02 81.02%

Mainly due to the impact of COVID-19 outbreak in the same

period of the previous year

Operating cost 3462713769.04 1991759544.67 73.85% Same as “Operation revenue”

Taxes and

surcharges

27280660.16 18907987.65 44.28%

Same as “Operation revenue”

Financial expenses -1483821.14 4376275.14 -133.91% Mainly due to the gains/losses of changes in foreign exchange

Gains from changes

in fair value

-17465727.43 -3935681.27 -343.78%

Mainly due to the fair value changes in forward foreign exchange

contract

Investment income 31431230.42 7493976.04 319.42%

Mainly due to the y-o-y increase of forward foreign exchange

contract delivery proceeds

Credit impairment

loss

-14975095.55 -33262321.33 54.98%

Mainly due to the impairment loss of note receivable and account

receivable increased from a year earlier

Assets disposal

income

-132879.85 262008.65 -150.72%

Mainly due to the loss from part of the assets disposal in the

Period

Income tax expenses

5426757.07 -6990752.22 177.63%

The income tax expenses increased due to the taxable income

amount increased in the Period

Minority interest 6070032.95 -8756819.19 169.32%

Profitability from part of the non-wholly-owned subsidiaries

increased from a year earlier

(iii) Changes and reasons of items in cash flow statement

In RMB

Item

Amount at the

period

Amount at the

same period of

last year

Changes

ratio

Reasons of changes

Cash received from selling goods and

providing services

3373434107.23 2514448244.56 34.16%

Cash received from selling goods and providing

services increased on a y-o-y basis

Other cash paid concerning operation

activities

270888821.50 188388232.21 43.79% The restricted monetary funds increased in the Period

Cash received from investment income 0.00 2279362.48 -100.00%

At same period last year received dividends from

joint venture subsidiaries while no such amount

occurred in the Period

Net cash received from disposal of

fixed assets intangible assets and other

long-term assets

226967.80 600.00 37727.97%

The cash received from disposal of fixed assets and

intangible assets are increased from a year earlier

Other cash received in connection with 65932678.99 39748651.98 65.87% The income from forward foreign exchange contract

Changhong Meiling Co. Ltd.The First Quarterly Report of 2021

investment activities delivery proceeds increased from a year earlier

Cash paid for acquisition and

construction of fixed assets intangible

assets and other long-term assets

86274381.23 65387929.38 31.94%

The cash flow paid for purchasing fixed assets in the

Period increased on a y-o-y basis

Cash paid for investments 1000000000.00 150000000.00 566.67%

Purchase of financial management in the Period

increased on a y-o-y basis

Cash received from borrowing 647079820.49 976420210.00 -33.73%

The loans obtained in the Period declined on a y-o-y

basis

Cash paid for debt repayment 904900000.00 377260642.92 139.86%

The cash paid for debt service in the Period increased

on a y-o-y basis

Other cash paid concerning financing

activities

6339329.84 358999.60 1665.83% Cash paid for buy-back of B-stock in the Period

II. Analysis and explanation of significant events and their influence and solutions

√ Applicable □Not applicable

(i) Transaction with Sichuan Changhong Group Finance Co. Ltd.The Company held the 41st session of 9th BOD 22nd session of 9th BOS and Fourth Extraordinary Shareholder’sMeeting of 2020 on 14 August 2020 and 12 October respectively deliberated and approved the “Proposal onRenewal of Financial Services Agreement with Sichuan Changhong Group Finance Co. Ltd and RelatedTransactions” and agreed the Company to continued financial services cooperation and renewal of the Financial

Services Agreement for a period of three years with Sichuan Changhong Group Finance Co. Ltd. (hereinafter

referred to as Changhong Finance Company). Changhong Finance Company shall provide a series of financial

services such as deposit and loan in its business scope according to the requirements of the Company and its

subsidiaries.The Company held the 4th session of 10th BOD 3rd session of 10th BOS and Fifth Extraordinary Shareholder’sMeeting of 2020 on 11 December 2020 and 19 December respectively deliberated and approved the “Proposal onthe Expected Continuing Related Transactions between the Company and its Subsidiaries and Sichuan ChanghongGroup Finance Co. Ltd for year of 2021”.The related transactions between the company and its subsidiaries and Changhong Finance Company from the

beginning of the year to the end of the reporting period are as follows:

In RMB

Item Opening balance

Increased during

the Period

Decreased during

the Period

Ending balance

Interest

handling charge

paid or received

I. Savings in Changhong Group

Finance Company

2798256008.52 10043782166.63 10530709013.62 2311329161.53 20366873.01

II. Borrowings from Changhong

Changhong Meiling Co. Ltd.The First Quarterly Report of 2021

Item Opening balance

Increased during

the Period

Decreased during

the Period

Ending balance

Interest

handling charge

paid or received

Group Finance Company

1.Short-term loans

2.Long-term loans

III. Other financial business

1.Notes drawing 1515518972.25 751830184.89 746806409.20 1520542747.94 406775.09

2.Notes discounted 1346246973.62 219112106.42 721317558.85 844041521.19 2792620.67

(ii) Other significant events

Overview Date for disclosure

Information index for temporary

report disclosure

After review and approval by the resolution of the BOD and BOS it was agreed that the

company would use the idle raised funds with 120 million yuan at most (the quota can be

used on a rolling basis) to invest in the high-security good-liquidity and capital-guaranteed

financial products with maturity within one year. The matter is subject to the deliberation and

approval by AGM of 2020 of the Company.March 3 2021

Juchao Website:

http://www.cninfo.com.cn

(No. 2021-008 No. 2021-009 and

No. 2021-010)

After review and approval by the resolution of the BOD it was agreed that the subordinate

controlling subsidiary Zhongke Meiling to newly established a wholly-owned subsidiary-

Anhui Linghe Medical Devices Co. Ltd. (tentative name subject to the approved name with

Industry & Commerce authority) with 10 million yuan.March 3 2021

Juchao Website:

http://www.cninfo.com.cn

(No. 2021-008)

After review and approval by the resolution of the BOD and BOS it was agreed that the

Company provide a credit guarantee line (not exceeding 359 million yuan) with a period of

one year to its subordinate controlling subsidiary Changmei Domestic Appliance. The matter

is subject to the deliberation and approval by AGM of 2020 of the Company.March 3 2021

Juchao Website:

http://www.cninfo.com.cn

(No. 2021-008 No. 2021-009 and

No. 2021-011)

After review and approval by the resolution of the BOD it was agreed to performing

technical renovations on the production line of Hefei Base Refrigerator (cabinet) with

24.4276 million yuan achieving the cost reduction and efficiency gains to reduce

manufacturing costs and further enhance the market competitiveness of the company’s

products.March 3 2021

Juchao Website:

http://www.cninfo.com.cn

(No. 2021-008)

After review and approval by the resolution of the BOD it was agreed that the Company and

its subordinate subsidiaries carry out the forward foreign exchange funds trading business

between 1 July 2021 and 30 June 2022. The balance of trading shall not exceed US$ 720

million (mainly including: USD AUD and EUR all other foreign currencies are converted to

USD) the maximum settlement period of a single transaction shall not exceed one year. The

matter is subject to the deliberation and approval by AGM of 2020 of the Company.March 31 2021

Juchao Website:

http://www.cninfo.com.cn

(No. 2021-013 and No. 2021-019)

After review and approval by the resolution of the BOD it was agreed that the Company to

formulated the “Shareholder Return Plan for the Next Three Years (2021-2023)”. The matter

is subject to the deliberation and approval by AGM of 2020 of the Company.March 31 2021

Juchao Website:

http://www.cninfo.com.cn

(No. 2021-013)

Changhong Meiling Co. Ltd.The First Quarterly Report of 2021

After review and approval by the resolution of the BOD it was agreed that the subordinate

subsidiary of the company- Zhongshan Changhong to write-off a bad debt of 1657332.46

yuan in total which was really beyond collection. The matter is subject to the deliberation

and approval by AGM of 2020 of the Company.March 31 2021

Juchao Website:

http://www.cninfo.com.cn

(No. 2021-013 and No. 2021-020)

After review and approval by the resolution of the BOD agreed to appoint Mr. Tang Youdao

as the Vice President of the Company his office term will same as the term as the current

BOD.

March 31 2021

Juchao Website:

http://www.cninfo.com.cn

(No. 2021-013)

After review and approval by the resolution of the BOD and BOS it was agreed that

controlling subsidiary - Zhongke Meiling Cryogenic Technology Co. Ltd to provide 60

million yuan credit guarantee line to its wholly-own subsidiary- Anhui Tuoxing Technology

Co. Ltd with guarantee period of one year. The matter is subject to the deliberation and

approval by AGM of 2020 of the Company.March 31 2021

Juchao Website:

http://www.cninfo.com.cn

(No. 2021-013 No. 2021-014 and

No. 2021-021)

After review and approval by the resolution of the BOD it was agreed that the company and

its subsidiaries to applying for a special credit line for the note pool from the follow

institutions as: up to 300 million yuan from Hefei Branch of Industrial Bank Co. ltd up to

300 million yuan from Hefei Branch of Ping An Bank Co. ltd up to 300 million yuan from

Hefei Economic Development Zone Branch of Huishang Bank Co. Ltd. up to 300 million

yuan from Hefei Branch of China Merchants Bank and up to 50 million yuan from Hefei

Branch of CITIC Bank. The matter is subject to the deliberation and approval by AGM of

2020 of the Company.

March 31 2021

Juchao Website:

http://www.cninfo.com.cn

(No. 2021-013 and No. 2021-022)

After review and approval by the resolution of the BOD agreed to re-appoints Shine Wing

Certified Public Accountants (LLP) as the audit institution of the annual financial report 2021

and internal control of the Company with one year period. At the same time to request the

shareholders’ general meeting to authorize management of the Company to determine its

annual audit remuneration according to the industry standards and actual audit works of the

company. The matter is subject to the deliberation and approval by AGM of 2020 of the

Company.

March 31 2021

Juchao Website:

http://www.cninfo.com.cn

(No. 2021-013 and No. 2021-017)

Former securities affairs representative and staff supervisor Mr. Zhu Wenjie apply to resign

as the staff supervisor of 10th BOS and securities affairs representative due to personal

reasons. To ensure that the structure of the BOS conforms to the relevant legal requirements

the staff congress held on 30 March 2021 after voting by the staff representative agreed to

elected Ms. Sun Hongying as the staff supervisor of the 10th BOS term of office shall

commence from the date of deliberation and approved by Staff Congress to the date of

expiration of the 10th BOS.March 31 2021

Juchao Website:

http://www.cninfo.com.cn

(No. 2021-023)

(iii) Progress of shares buy-back

√Applicable □ Not applicable

The company’s 40th session of the ninth board of directors the 21st session of the ninth board of supervisors and

the 3rd extraordinary general meeting of shareholders in 2020 held on July 27 2020 and August 18 2020

deliberated and approved the Proposal on the Repurchase of Part of Domestically Listed Foreign Shares (B Shares)

of the Company. Agreed the Company to using the own funds to buy-back the B share by means of centralized

bidding transactions within the 12 months since the Buy-back of B share proposal approved by Shareholders

Changhong Meiling Co. Ltd.The First Quarterly Report of 2021

general Meeting. The price of buy-back shall not exceed HK$ 221 per share (inclusive) and shall not be higher

than 150% of the average trading price of B shares for the 30 trading days prior to the date when the buy-back

proposal approved by the Board. The total amount of buy-back shall not be less than 50 million yuan (inclusive)

and not more than 100 million yuan (inclusive) converted at the mid-rate of HKD/CNY exchange rate dated 24

July 2020(HKD1=CNY0.9023) equivalent to not less than HK$55413942.15 (inclusive) and not exceeding

HK$ 110827884.30 (inclusive). (the actual amount of HKD is based on the exchange rate on the date of purchase

of foreign exchange including the relevant expenses as foreign exchange purchase and transaction fees )

The company repurchased its shares for the first time from November 4 2020 to the disclosure date of the report

and repurchased 8388888 shares of the company by centralized bidding through a dedicated securities account

for repurchase accounting for 0.8031% of the company’s total share capital the highest transaction price was

HK$2.21/share the lowest transaction price was HK$1.87/share and the total amount of self-owned funds paid

was HK$17946867.40(excluding transaction fees such as stamp duty and commission).

Among which from 1 January 2021 to 31 March 2021 repurchased 2836737 shares of the company by

centralized bidding through a dedicated securities account for repurchase accounting for 0.2716% of the

company’s total share capital the highest transaction price was HK$2.21/share the lowest transaction price was

HK$2.15/share and the total amount of self-owned funds paid was HK$6247402.13(excluding transaction fees

such as stamp duty and commission).

Found more on announcement (Notice No.:2020-047 2020-048 2020-049 2020-063 2020-064 2020-066

2020-081 2020-092 2020-093 2020-094 2020-095 2021-001 2021-007 2021-012 and 2021-025) released on

appointed media China Securities Journal Securities Times Hong Kong Commercial Daily and Juchao Website

(www.cninfo.com.cn) respectively dated 28 July 2020 31 July 14 August 19 August 4 September 10 October 3

November 5 November 6 November 2 December and 5 January 2021 3 February 3 March and 3 April.(iv) Implementation progress of the reduction of repurchases shares by centralized bidding

□ Applicable √ Not applicable

III. Commitments completed in Period and those without completed till end of the Period

from actual controller shareholders related parties purchaser and companies

□ Applicable √ Not applicable

The Company has no commitments completed in Period and those without completed till end of the Period from

actual controller shareholders related parties purchaser and companies.IV. Financial asset investment

1. Securities investment

□ Applicable √ Not applicable

There was no securities investment in the company during the reporting period.

Changhong Meiling Co. Ltd.The First Quarterly Report of 2021

2. Derivative investment

√ Applicable □Not applicable

In 10 thousand Yuan

Operator

Related

relationshi

p

Whether

related

trade or

not

Type

Initial

investment

Start date End date

Investment

amount at

period-begin

Amount

purchased in

the reporting

period

Amount

sales in the

reporting

period

Amount of

reserve for

devaluatio

n of

withdrawi

ng (if

applicable

)

Investment

amount at

period-end

Ratio of

investment

amount at

period-end in

net assets of the

Company at

period-end

Actual

gains/losses in

period

Financial

institution

N/A No

Forward

foreign

exchange

328707.20 April 22 2020 December 31 2021 208749.56 119957.64 97475.87 - 227378.39 46.85% 3852.94

Total 328707.20 -- -- 208749.56 119957.64 97475.87 - 227378.39 46.85% 3852.94

Capital resource Self-owned capital

Lawsuit involved (if applicable) Not applicable

Disclosure date for approval from the Board for

investment of derivatives (if applicable)

March 28 2020

Disclosure date for approval from board of

shareholders for investment of derivatives (if

applicable)

May 30 2020

Risk analysis and controlling measures for

derivatives holdings in the Period (including but

not limited to market risk liquidity risk credit

risks operation risk and law risks etc.)

Risk analysis:

1. Market risk: domestic and international economic situation changes may lead to exchange rate fluctuations forward foreign exchange transactions are

under certain market risk. Forward foreign exchange business is aiming to reducing impact on corporate profits by foreign exchange settlement and sale

prices exchange rate fluctuations. The Company will follow up the exchange fluctuation on the basis of target rate determined from the business relying on

the research of the foreign currency exchange rates combined with prediction of consignments and burdening ability to price variations due to exchange rate

fluctuations then determine the plan of forward foreign exchange contracts and make dynamic management to the business to ensure reasonable profit

Changhong Meiling Co. Ltd.The First Quarterly Report of 2021

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 Bank of China Agricultural Bank of China Industrial and

Commercial Bank of China China Construction Bank and other Chines e-funded banks with a joint-stock system as Everbright and Industrial Bank as well

as the foreign-funded banks as UOB Oversea Chinese Bank and the Bank of East Asia 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.Risk analysis and controlling measures for

derivatives holdings in the Period (including but

not limited to market risk liquidity risk credit

risks operation risk and law risks etc.)

The Company determines fair value in accordance with the Chapter VII “Determination of Fair Value” carried in the Accounting Standards for Business

Enterprises No.22 - Recognition and Measurement of Financial Instruments. Fair-value is basically obtained according to prices offered by bank and other

pricing services. While fair-value of derivatives is mainly obtained according to the balance between prices given by outstanding contracts and forward

prices given by contracts signed during the reporting period with bank. The differences are identified as trading financial assets and liabilities. During the

reporting period forward foreign exchange contracts and losses of the Company is 38.5294 million yuan.Specific principle of the accounting policy and

calculation for derivatives in the Period

compared with last period in aspect of major

changes

Not applicable

Special opinion on derivative investment and

risk control by independent directors

Upon inspection the independent directors of the Company believes that: during the reporting period the Company carried out its foreign exchange forward

deals in strict compliance with the Standardized Operation Guidelines for Listed Company issued by Shenzhen Stock Exchange the Articles of Association

Authorization Management of the Company Management System in relating to Foreign Exchange Forward Deals of the Company 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 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.

Changhong Meiling Co. Ltd.The First Quarterly Report of 2021

Interests of the Company and entire shareholders especially minority shareholders were not prejudiced.

Changhong Meiling Co. Ltd.The First Quarterly Report of 2021

V. Progress of investment projects with raised funds

√ Applicable □Not applicable

(i) Particular about process of the fund raised

The Company implemented a private placement of A-share in year of 2016 totally 1569999998.84 Yuan raised

net money raised amounting to 1540732722.76 Yuan after deducted vary issuance costs (tax included)

29267276.08 Yuan.

Being deliberated and approved by the 24th session of the 9th board of directors the 13th session of the 9th board of

supervisors and the second extraordinary general meeting of shareholders in 2019it was agreed that the companyto change the unused raised funds of 120 million yuan from the sub-project “annual additional 600000 sets ofmedium and large volume environmental protection and energy-saving freezer intelligent production line” under

the fund raise project -"Intelligent Manufacturing Construction Project" and put into the "Production base project

of annual output of 2 million washing machines(Phase II) "; and agreed the company to terminate the

implementation of “Intelligent Life Project” and use the remaining proceeds of the project and interest from

financial management to permanently replenish the working capital. Up to now the company regulates the use of

funds raised in line with the decision-making of the shareholders general meeting and relevant regulation.

As of 31 March 2021 the fund raising project of private issuance of 2016 has 1519817853.08 yuan (including

the amount of permanent supplementary working capital) actually used in total balance of the dedicated fund

raising account was 145133593.35 yuan (including interest income of 3868587.54 yuan and maturity income of

the bank financial management 38511235.70 yuan). Among them from January to March 2021 the company

used a total of 11668519.11 yuan of raised funds.(ii) Progress of the projects with fund raised involved

1. “Construction of intelligent manufacturing project”

(1) Sub-project “Intelligent manufacturing (Hefei)”: up to now the project has reached the intended useable

condition. The cumulative proceeds amounted to 271000000.00 yuan and 38321431.22 yuan remain all of

which were the deposit interest and income from financial managements.

(2) Production base project of annual output of 2 million washing machines (Phase II) has a trial production in

June 2020. Up to now the project has substantially reached its intended useable condition. Other projects are

ready for use and the remaining payment is till in the process of payment. The cumulative proceeds amounted to

86328918.14 yuan and 37676856.31 yuan remain (including 3880593.68 yuan financial management income

and 125180.77 yuan deposit interest)

2. “Construction of intelligent R&D capability and new products development of the intelligent appliancetechnology”

Except for the sub-project “intelligent R&D management platform construction” other projects have beencompleted. As of the end of the reporting period the cumulative proceeds of “Construction of intelligent R&Dcapability and new products development of the intelligent appliance technology” amounted to 540764219.90

yuan (including the cash supplemented the working capital 126766362.64 yuan) 69135305.82 yuan remain

(including interest income 52617.57 yuan and financial management income 0 yuan)

Changhong Meiling Co. Ltd.The First Quarterly Report of 2021

Being deliberated and approved by 31st session of 9th BOD 16th session of 9th BOS and Fourth Extraordinary

Shareholders Meeting of 2019 it was agreed that the company to change the use and investment of some of the

funds raised in the “intelligent research and development project” and use them to purchase intelligent

infrastructure platform construction and software R & D platforms and other R & D assets from Sichuan

Changhong Electric Co. Ltd.and its subsidiaries in order to completed the sub-project “intelligent R&Dmanagement platform construction” under the “intelligent research and development project”. However due tothe certain changes outside the environment during the trading period material uncertainty has arisen regarding

the timing and outcome of the completion of the delivery of the underlying assets of the transaction. In order to

effectively safeguard the interest of the listed company and all shareholders considering that the listed company

has not yet paid the transaction funds and has not yet carried out the transfer procedures of the underlying assets

and being deliberated and approved by the 7th session of 10th BOD and 6th session of 10th BOS held on 19 April

2021 agreed the company to terminated the purchasing of R&D assets such as intelligent infrastructural platform

construction and software development platform from Sichuan Changhong and its subsidiary as well as the related

transactions. The amount of the related transaction termination amounted to 46.6173 million yuan. Aftertransaction terminated the remain fund raise of “intelligent R&D capacity construction and new productdevelopment project on intelligent home appliance technology” will still be used for the follow-up investment.The company builds its own R&D platform to meet the rapid response of technology iteration and upgrade

improve the R&D efficiency and enhance the competitiveness of independent R&D core technology.

3. “Intelligent life project”

The resolutions of the 24thsession of the ninth board of directors of the company the 13thsession of the ninth board

of supervisors and the 2nd extraordinary shareholders’ meeting in 2019 passed and approved the company to

terminate the implementation of the “Intelligent life project” and use the remaining raised funds and financial

management interest of the project to permanently supplement the working capital. The company has withdrawn

the remaining funds raised and interest income from this account a total of 305843051.27 yuan to permanently

supplement the company’s working capital. Meanwhile the implement subject - Changmei Technology Co. Ltd.(hereinafter referred to as the “Changmei Technology”) has been liquidated and cancelled.

4. Supplementary the floating capital was completed and the cumulative use of proceeds amounted to

270880063.77 yuan (including deposit interest 147341.01 yuan)

VI. Forecast of operation performance from January – June of 2021

Estimation on accumulative net profit from the beginning of the year to the end of next report period to be loss

probably or the warning of its material change compared with the corresponding period of the last year and

explanation on reason

□ Applicable √ Not applicable

VII. Major contracts for daily operations

□ Applicable √ Not applicable

Changhong Meiling Co. Ltd.The First Quarterly Report of 2021

VIII. Trust financing

√Applicable □ Not applicable

In 10 thousand Yuan

Type Capital resources Amount for entrust Undue balance Overdue amount

Bank financing products Idle own funds 100000 100000 0

Total 100000 100000 0

Details of the single major amount or high-risk trust investment with low security poor fluidity and

non-guaranteed:

√Applicable □ Not applicable

Changhong Meiling Co. Ltd.The First Quarterly Report of 2021

In 10 thousand Yuan

Trustee institution

(or name of trustee)

Trustee

type

Produc

t type

Amount

Source

of

funds

Start date

Expiry

date

Capital investment purpose

Criteri

a for

fixing

reward

Referenc

e annual

rate of

return

Anticipate

d income

(if

applicable

)

Actual

gains/l

osses

in

period

Actual

collected

gains/los

ses in

period

Amount

of

reserve

for

devaluat

ion of

withdra

wing

(if

applicab

le)

Wheth

er

approv

ed by

legal

proced

ure

(Y/N)

Whether

has

entrust

finance

plan in

the

future

Summary of

the items and

related query

index (if

applicable)

Hefei Branch of

Bank of East Asia

(China) Co. Ltd.

Bank

Princi

pal-gu

arante

ed

with

floatin

g

incom

e

10000

Idle

own

funds

January

15 2021

July 15

2021

Deposits embedded in financial

derivatives absorbed by the Bank are

linked to exchange rate fluctuations so

that depositors can obtain corresponding

returns on the basis of certain risks.

Annua

lized

returns

:

3.60%

3.60% 181.00 - - N/A Y

Not

applicab

le

Juchao

Website(ww

w.cninfo.co

m.cn)

(Notice No.:

2021-003)

Changhong Meiling Co. Ltd.The First Quarterly Report of 2021

Mianyang Branch

of Bank of

Communications

Co. Ltd.

Bank

Princi

pal-gu

arante

ed

with

floatin

g

incom

e

20000

Idle

own

funds

January

18 2021

April 19

2021

The funds raised from the structured

deposit products of Bank of

Communications are operated uniformly

by the Bank of Communications and

business management is carried out in

accordance with the principle of

separating basic deposits from derivative

transactions. The principal part raised is

included in the unified operation and

management of the internal funds of the

Bank of China and included in the

payment scope of deposit reserves and

deposit insurance premiums. The

embedded derivatives of a product are

lined to exchange rates interest rates

commodities indexes and other targets.

Annua

lized

returns

:

3.15%

3.15% 157.07 - - N/A Y

Not

applicab

le

Juchao

Website(ww

w.cninfo.co

m.cn)

(Notice No.:

2021-003)

Changhong Meiling Co. Ltd.The First Quarterly Report of 2021

Anhui Branch of

Bank of

Communications

Co. Ltd.

Bank

Princi

pal-gu

arante

ed

with

floatin

g

incom

e

10000

Idle

own

funds

January

19 2021

April 19

2021

The funds raised from the structured

deposit products of Bank of

Communications are operated uniformly

by the Bank of Communications and

business management is carried out in

accordance with the principle of

separating basic deposits from derivative

transactions. The principal part raised is

included in the unified operation and

management of the internal funds of the

Bank of China and included in the

payment scope of deposit reserves and

deposit insurance premiums. The

embedded derivatives of a product are

lined to exchange rates interest rates

commodities indexes and other targets.

Annua

lized

returns

:

3.15%

3.15% 77.67 - - N/A Y

Not

applicab

le

Juchao

Website(ww

w.cninfo.co

m.cn)

(Notice No.:

2021-003)

Changhong Meiling Co. Ltd.The First Quarterly Report of 2021

Hefei Branch of

Bank of China

Limited

Bank

Guara

nteed

capital

and

minim

um

return

10000

Idle

own

funds

January

18 2021

July 14

2021

Funds raised by this product are operated

uniformly by the Bank of China and

business management is carried out in

accordance with the principle of

separating basic deposits from derivative

transactions. The principal part raised is

included in the unified operation and

management of the internal funds of the

Bank of China and included in the

payment scope of deposit reserves and

deposit insurance premiums. Products

embedded derivatives are partly invested

in derivatives markets such as exchange

rates interest rates commodities and

indices and the final product performance

is linked to derivatives.

Annua

lized

returns

:

3.63%

3.63% 176.03 - - N/A Y

Not

applicab

le

Juchao

Website(ww

w.cninfo.co

m.cn)

(Notice No.:

2021-003)

Hefei Branch of

Bohai Bank Co.

Ltd.

Bank

Princi

pal-gu

arante

ed

with

floatin

g

incom

e

5000

Idle

own

funds

January

20 2021

July 21

2021

A structured deposit product whose

derivatives are partially linked to the

mid-rate of the U.S. dollar against

Japanese Yen exchange rate

Annua

lized

returns

:

3.50%

3.50% 87.26 - - N/A Y

Not

applicab

le

Juchao

Website(ww

w.cninfo.co

m.cn)

(Notice No.:

2021-003)

Changhong Meiling Co. Ltd.The First Quarterly Report of 2021

Chengdu Branch of

Bohai Bank Co.

Ltd.

Bank

Princi

pal-gu

arante

ed

with

floatin

g

incom

e

10000

Idle

own

funds

January

20 2021

July 21

2021

A structured deposit product whose

derivatives are partially linked to the

mid-rate of the U.S. dollar against

Japanese Yen exchange rate

Annua

lized

returns

:

3.50%

3.50% 174.52 - - N/A Y

Not

applicab

le

Juchao

Website(ww

w.cninfo.co

m.cn)

(Notice No.:

2021-004)

Mianyang branch of

Bank of China

Limited

Bank

Guara

nteed

capital

and

minim

um

return

20000

Idle

own

funds

January

18 2021

April 20

2021

Funds raised by this product are operated

uniformly by the Bank of China and

business management is carried out in

accordance with the principle of

separating basic deposits from derivative

transactions. The principal part raised is

included in the unified operation and

management of the internal funds of the

Bank of China and included in the

payment scope of deposit reserves and

deposit insurance premiums. Products

embedded derivatives are partly invested

in derivatives markets such as exchange

rates interest rates commodities and

indices and the final product performance

is linked to derivatives. During the

investment period Bank of China uses the

income method to value the embedded

option price of this structured deposit.

Annua

lized

returns

:

3.54%

3.54% 178.45 - - N/A Y

Not

applicab

le

Juchao

Website(ww

w.cninfo.co

m.cn)

(Notice No.:

2021-003)

Changhong Meiling Co. Ltd.The First Quarterly Report of 2021

Hefei Changdong

Branch of Industrial

and Commercial

Bank of China

Limited

Bank

Princi

pal-gu

arante

ed

with

floatin

g

incom

e

10000

Idle

own

funds

January

26 2021

April 28

2021

The principal part of this product shall be

incorporated into the unified internal fund

operation and management of ICBC the

income is invested in the derivative linked

to the exchange rate of US dollar against

Japanese Yen and earnings of the

products are linked to the performance of

the US dollar/Japanese Yen exchange rate

in the international markets during the

observation period. Returns of the

investors are depend on the performance

of the US dollar against the Japanese Yen

over the observation period.

Annua

lized

returns

:

3.30%

3.30% 83.18 - - N/A Y

Not

applicab

le

Juchao

Website(ww

w.cninfo.co

m.cn)

(Notice No.:

2021-005)

Hefei Branch of

China Everbright

Bank Co. Ltd.

Bank

Princi

pal-gu

arante

ed

with

floatin

g

incom

e

5000

Idle

own

funds

January

15 2021

April 15

2021

This product is a RMB structured deposit

product with embedded financial

derivative instruments. The bank will

invest the raised structured deposit funds

in bank time deposits and at the same

time invest in financial derivative

transactions (including but not limited to

options and swaps and other derivative

transactions) in domestic or international

financial markets by limiting the income

of the time deposits to the upper limit the

sum of the investment gains and losses of

financial derivative transactions and the

bank deposit interest together constitute

the income of structured deposit products.

Annua

lized

returns

:

3.00%

3.00% 37.50 - - N/A Y

Not

applicab

le

Juchao

Website(ww

w.cninfo.co

m.cn)

(Notice No.:

2021-004)

Total 100000 -- -- -- -- -- -- 1152.68 - -- -- -- -- --

Changhong Meiling Co. Ltd.The First Quarterly Report of 2021

Entrust financial expected to be unable to recover the principal or impairment might be occurred

□Applicable √ Not applicable

IX. Guarantee outside against the regulation

□Applicable √Not applicable

The Company had no guarantee outside against the regulation in the reporting period.X. Non-operational fund occupation from controlling shareholders and its related party

□ Applicable √ Not applicable

The Company had no non-operational fund occupation from controlling shareholders or its related party in the

reporting period.XI. Registration form for receiving research communication and interview in the report

period

□Applicable √Not applicable

The Company had no receiving research communication or interview in the report period.

Changhong Meiling Co. Ltd.The First Quarterly Report of 2021

Section IV. Financial Statement

I. Financial statement

1. Consolidate balance sheet

Prepared by Changhong Meiling Co. Ltd.In RMB

Item March 31 2021 March 31 2020

Current assets:

Monetary fund 4408281323.05 6594786789.98

Settlement provisions

Capital lent

Trading financial assets 1028680651.61 47242339.07

Derivative financial assets

Note receivable 319034920.06 340421386.71

Account receivable 1778186759.73 1130275780.66

Receivable financing 1528145863.81 1632388702.83

Accounts paid in advance 58012556.17 30105373.40

Insurance receivable

Reinsurance receivables

Contract reserve of reinsurance receivable

Other account receivable 149284188.35 145705978.26

Including: Interest receivable

Dividend receivable

Buying back the sale of financial assets

Inventories 2667019319.18 1715354951.43

Contractual assets

Assets held for sale

Non-current asset due within one year

Other current assets 244822465.13 198353464.98

Total current assets 12181468047.09 11834634767.32

Non-current assets:

Loans and payments on behalf

Debt investment

Changhong Meiling Co. Ltd.The First Quarterly Report of 2021

Other debt investment

Long-term account receivable

Long-term equity investment 69683549.24 76982822.38

Investment in other equity instrument

Other non-current financial assets 548148931.34 548148931.34

Investment real estate 54588057.54 53888462.00

Fixed assets 2369501821.01 2391859440.31

Construction in progress 67835296.75 60775088.96

Productive biological asset

Oil and gas asset

Right-of-use assets 22258350.11

Intangible assets 953035638.26 936851520.65

Expense on Research and Development 79614245.23 73028441.56

Goodwill

Long-term expenses to be apportioned

Deferred income tax asset 124528063.21 127185979.94

Other non-current asset

Total non-current asset 4289193952.69 4268720687.14

Total assets 16470661999.78 16103355454.46

Current liabilities:

Short-term loans 993337141.77 1336209050.55

Loan from central bank

Capital borrowed

Trading financial liability 3488116.48 4584076.51

Derivative financial liability

Note payable 4653004079.61 4439607982.34

Account payable 3451101623.90 2851999684.30

Accounts received in advance

Contractual liability 455639599.56 522550891.28

Selling financial asset of repurchase

Absorbing deposit and interbank deposit

Security trading of agency

Security sales of agency

Wage payable 198470767.14 290321776.05

Changhong Meiling Co. Ltd.The First Quarterly Report of 2021

Taxes payable 61038028.05 89682433.90

Other account payable 781898901.41 724701686.72

Including: Interest payable

Dividend payable 4466628.25 4466628.25

Commission charge and commission payable

Reinsurance payable

Liability held for sale

Non-current liabilities due within one year 115715827.98 407825150.74

Other current liabilities 34135600.19 22923698.73

Total current liabilities 10747829686.09 10690406431.12

Non-current liabilities:

Insurance contract reserve

Long-term loans 488518705.55 188231439.30

Bonds payable

Including: Preferred stock

Perpetual capital securities

Lease liability 12940572.85

Long-term account payable 1481910.81 1705323.91

Long-term wages payable 9804235.21 10571526.69

Accrual liability 46674564.52 62392735.07

Deferred income 174664662.34 177377450.12

Deferred income tax liabilities 6268762.89 10575582.33

Other non-current liabilities

Total non-current liabilities 740353414.17 450854057.42

Total liabilities 11488183100.26 11141260488.54

Owner’s equity:

Share capital 1044597881.00 1044597881.00

Other equity instrument

Including: Preferred stock

Perpetual capital securities

Capital public reserve 2683834267.96 2683837229.12

Less: Inventory shares 15158122.98 9929336.18

Other comprehensive income -22202136.92 -21451084.17

Reasonable reserve

Changhong Meiling Co. Ltd.The First Quarterly Report of 2021

Surplus public reserve 416364790.43 416364790.43

Provision of general risk

Retained profit 746052028.65 740754202.23

Total owner’ s equity attributable to parent company 4853488708.14 4854173682.43

Minority interests 128990191.38 107921283.49

Total owner’ s equity 4982478899.52 4962094965.92

Total liabilities and owner’ s equity 16470661999.78 16103355454.46

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

Item March 31 2021 March 31 2020

Current assets:

Monetary funds 2815568155.70 4605962184.11

Trading financial assets 1016113133.40 37589391.07

Derivative financial assets

Note receivable 259552018.68 286990200.00

Account receivable 1412255771.35 1019299017.40

Receivable financing 1403688997.80 1561429139.80

Accounts paid in advance 61624838.78 39571728.09

Other account receivable 57048384.71 49093918.57

Including: Interest receivable

Dividend receivable

Inventories 718459280.47 578905855.30

Contractual assets

Assets held for sale

Non-current assets maturing within one year

Other current assets 130304219.64 142573164.77

Total current assets 7874614800.53 8321414599.11

Non-current assets:

Debt investment

Other debt investment

Long-term receivables

Changhong Meiling Co. Ltd.The First Quarterly Report of 2021

Long-term equity investments 1861699274.53 1834115835.95

Investment in other equity instrument

Other non-current financial assets 548148931.34 548148931.34

Investment real estate 3909377.22 3961590.38

Fixed assets 1216967117.05 1229803474.56

Construction in progress 48794936.02 47570309.13

Productive biological assets

Oil and natural gas assets

Right-of-use assets

Intangible assets 474746704.55 479923618.32

Research and development costs 55584317.14 42913363.51

Goodwill

Long-term deferred expenses

Deferred income tax assets 102112716.18 103462284.33

Other non-current assets

Total non-current assets 4311963374.03 4289899407.52

Total assets 12186578174.56 12611314006.63

Current liabilities

Short-term borrowings 961070887.80 1234926592.05

Trading financial liability 2255736.00 2512269.00

Derivative financial liability

Notes payable 2779772716.35 2510288511.69

Account payable 1624897477.72 1918960127.71

Accounts received in advance

Contractual liability 178104923.64 281974752.24

Wage payable 84860294.58 130314834.51

Taxes payable 12451118.30 19582700.30

Other accounts payable 673838162.33 624090798.72

Including: Interest payable

Dividend payable 3866628.25 3866628.25

Liability held for sale

Non-current liabilities due within one year 106761067.52 407141888.08

Other current liabilities 5000621.88 6432113.43

Total current liabilities 6429013006.12 7136224587.73

Changhong Meiling Co. Ltd.The First Quarterly Report of 2021

Non-current liabilities:

Long-term loans 488518705.55 188231439.30

Bonds payable

Including: preferred stock

Perpetual capital securities

Lease liability

Long-term account payable

Long term employee compensation payable 9804235.21 10571526.69

Accrued liabilities 39317739.76 55035910.31

Deferred income 66752084.26 67315337.57

Deferred income tax liabilities 1969647.39 6102908.01

Other non-current liabilities

Total non-current liabilities 606362412.17 327257121.88

Total liabilities 7035375418.29 7463481709.61

Owners’ equity:

Share capital 1044597881.00 1044597881.00

Other equity instrument

Including: preferred stock

Perpetual capital securities

Capital public reserve 2753134826.83 2753137787.99

Less: Inventory shares 15158122.98 9929336.18

Other comprehensive income

Special reserve

Surplus reserve 416146624.75 416146624.75

Retained profit 952481546.67 943879339.46

Total owner’s equity 5151202756.27 5147832297.02

Total liabilities and owner’s equity 12186578174.56 12611314006.63

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

Item Current period Last period

I. Total operating income 4130121476.44 2281578242.02

Changhong Meiling Co. Ltd.The First Quarterly Report of 2021

Including: Operating income 4130121476.44 2281578242.02

Interest income

Insurance gained

Commission charge and commission income

II. Total operating cost 4114082728.16 2534145650.00

Including: Operating cost 3462713769.04 1991759544.67

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 27280660.16 18907987.65

Sales expense 470854477.88 371060681.20

Administrative expense 69868119.38 66823587.40

R&D expense 84849522.84 81217573.94

Financial expense -1483821.14 4376275.14

Including: Interest expenses 19017594.62 21823849.54

Interest income 32955063.89 36615193.00

Add: other income 13160582.16 10962097.40

Investment income (Loss is listed with “-”) 31431230.42 7493976.04

Including: Investment income on affiliated company and joint

venture

-7098168.49 -131480.96

The termination of income recognition for financial

assets measured by amortized cost(Loss is listed with “-”)

Exchange income (Loss is listed with “-”)

Net exposure hedging income (Loss is listed with “-”)

Income from change of fair value (Loss is listed with “-”) -17465727.43 -3935681.27

Loss of credit impairment (Loss is listed with “-”) -14975095.55 -33262321.33

Losses of devaluation of asset (Loss is listed with “-”) -14938223.91 -15425929.32

Income from assets disposal (Loss is listed with “-”) -132879.85 262008.65

III. Operating profit (Loss is listed with “-”) 13118634.12 -286473257.81

Add: Non-operating income 4126563.91 1226885.79

Less: Non-operating expense 450581.59 509324.06

Changhong Meiling Co. Ltd.The First Quarterly Report of 2021

IV. Total profit (Loss is listed with “-”) 16794616.44 -285755696.08

Less: Income tax expense 5426757.07 -6990752.22

V. Net profit (Net loss is listed with “-”) 11367859.37 -278764943.86

(i) Classify by business continuity

1.continuous operating net profit (net loss listed with ‘-”) 11367859.37 -278764943.86

2.termination of net profit (net loss listed with ‘-”)

(ii) Classify by ownership

1.Net profit attributable to owner’s of parent company 5297826.42 -270008124.67

2.Minority shareholders’ gains and losses 6070032.95 -8756819.19

VI. Net after-tax of other comprehensive income -1223856.13 -5014374.15

Net after-tax of other comprehensive income attributable to owners

of parent company

-751052.75 -4643772.99

(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

-751052.75 -4643772.99

1.Other comprehensive income under equity method that

can transfer to gain/loss

2.Change of fair value of other debt investment

3.Amount of financial assets re-classify to other

comprehensive income

4.Credit impairment provision for other debt investment

5.Cash flow hedging reserve

6.Translation differences arising on translation of foreign

currency financial statements

-751052.75 -4643772.99

7.Other

Net after-tax of other comprehensive income attributable to minority

shareholders

-472803.38 -370601.16

VII. Total comprehensive income 10144003.24 -283779318.01

Changhong Meiling Co. Ltd.The First Quarterly Report of 2021

Total comprehensive income attributable to owners of parent

Company

4546773.67 -274651897.66

Total comprehensive income attributable to minority shareholders 5597229.57 -9127420.35

VIII. Earnings per share:

(i) Basic earnings per share 0.0051 -0.2585

(ii) Diluted earnings per share 0.0051 -0.2585

Enterprise combine under the same control in the Period the combined party realized net profit of 0 Yuan before combination and

realized 0 Yuan at last period for combined party

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 Current period Last period

I. Operating income 2002187328.72 1281482775.64

Less: Operating cost 1884584795.96 1184575349.81

Taxes and surcharge 12864364.47 11663936.82

Sales expenses 39803747.21 33721660.12

Administration expenses 28593297.77 27845465.65

R&D expenses 34843973.62 36443568.44

Financial expenses -3887945.46 -3083596.30

Including: interest expenses 15877999.09 18493137.60

Interest income 21275632.44 29941251.74

Add: other income 6222349.77 4057643.39

Investment income (Loss is listed with “-”) 26150697.17 5887302.00

Including: Investment income on affiliated Company and

joint venture

-7416561.42

The termination of income recognition for financial

assets measured by amortized cost (Loss is listed with “-”)

Net exposure hedging income (Loss is listed with “-”)

Changing income of fair value (Loss is listed with “-”) -21219724.67 -3210372.30

Loss of credit impairment (Loss is listed with “-”) -10302416.82 -22678326.56

Losses of devaluation of asset (Loss is listed with “-”) -1578459.71 -2385899.85

Income on disposal of assets (Loss is listed with “-”) -117050.08 -4964.88

II. Operating profit (Loss is listed with “-”) 4540490.81 -28018227.10

Changhong Meiling Co. Ltd.The First Quarterly Report of 2021

Add: Non-operating income 1278023.93 125200.11

Less: Non-operating expense

III. Total Profit (Loss is listed with “-”) 5818514.74 -27893026.99

Less: Income tax -2783692.47 -7778997.67

IV. Net profit (Net loss is listed with “-”) 8602207.21 -20114029.32(i) continuous operating net profit (net loss listed with ‘-”) 8602207.21 -20114029.32(ii) termination of net profit (net loss listed with ‘-”)

V. Net after-tax of other comprehensive income

(I) Other comprehensive income items which will not be

reclassified subsequently to profit of loss

1.Changes of the defined benefit plans that re-measured

2.Other comprehensive income under equity method that

cannot be transfer to gain/loss

3.Change of fair value of investment in other equity

instrument

4.Fair value change of enterprise's credit risk

5. Other

(II) Other comprehensive income items which will be reclassified

subsequently to profit or loss

1.Other comprehensive income under equity method that

can transfer to gain/loss

2.Change of fair value of other debt investment

3.Amount of financial assets re-classify to other

comprehensive income

4.Credit impairment provision for other debt investment

5.Cash flow hedging reserve

6.Translation differences arising on translation of foreign

currency financial statements

7.Other

VI. Total comprehensive income 8602207.21 -20114029.32

VII. Earnings per share:

(i) Basic earnings per share 0.0082 -0.0193

(ii) Diluted earnings per share 0.0082 -0.0193

Legal Representative: Wu Dinggang

Person in charge of accounting works: Pang Haitao

Person in charge of accounting institute: Yang Jun

Changhong Meiling Co. Ltd.The First Quarterly Report of 2021

5. Consolidated Cash Flow Statement

In RMB

Item Current period Last period

I. Cash flows arising from operating activities:

Cash received from selling commodities and providing labor

services

3373434107.23 2514448244.56

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 143775589.37 110892572.91

Other cash received concerning operating activities 20772768.09 25388923.86

Subtotal of cash inflow arising from operating activities 3537982464.69 2650729741.33

Cash paid for purchasing commodities and receiving labor service 3693784072.40 3028183707.21

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 460407255.70 357488873.85

Taxes paid 81424772.89 80120060.82

Other cash paid concerning operating activities 270888821.50 188388232.21

Subtotal of cash outflow arising from operating activities 4506504922.49 3654180874.09

Net cash flows arising from operating activities -968522457.80 -1003451132.76

II. Cash flows arising from investing activities:

Cash received from recovering investment

Cash received from investment income 2279362.48

Changhong Meiling Co. Ltd.The First Quarterly Report of 2021

Net cash received from disposal of fixed intangible and other

long-term assets

226967.80 600.00

Net cash received from disposal of subsidiaries and other units

Other cash received concerning investing activities 65932678.99 39748651.98

Subtotal of cash inflow from investing activities 66159646.79 42028614.46

Cash paid for purchasing fixed intangible and other long-term

assets

86274381.23 65387929.38

Cash paid for investment 1000000000.00 150000000.00

Net increase of mortgaged loans

Net cash received from subsidiaries and other units obtained

Other cash paid concerning investing activities 24740.79

Subtotal of cash outflow from investing activities 1086299122.02 215387929.38

Net cash flows arising from investing activities -1020139475.23 -173359314.92

III. Cash flows arising from financing activities

Cash received from absorbing investment 15000000.00

Including: Cash received from absorbing minority shareholders’

investment by subsidiaries

15000000.00

Cash received from loans 647079820.49 976420210.00

Other cash received concerning financing activities 3982026.24

Subtotal of cash inflow from financing activities 666061846.73 976420210.00

Cash paid for settling debts 904900000.00 377260642.92

Cash paid for dividend and profit distributing or interest paying 19467766.75 23019861.96

Including: Dividend and profit of minority shareholder paid by

subsidiaries

Other cash paid concerning financing activities 6339329.84 358999.60

Subtotal of cash outflow from financing activities 930707096.59 400639504.48

Net cash flows arising from financing activities -264645249.86 575780705.52

IV. Influence on cash and cash equivalents due to fluctuation in

exchange rate

-3538183.05 -3198606.93

V. Net increase of cash and cash equivalents -2256845365.94 -604228349.09

Add: Balance of cash and cash equivalents at the period -begin 6425529815.10 5385807475.51

VI. Balance of cash and cash equivalents at the period -end 4168684449.16 4781579126.42

Legal Representative: Wu Dinggang

Person in charge of accounting works: Pang Haitao

Person in charge of accounting institute: Yang Jun

Changhong Meiling Co. Ltd.The First Quarterly Report of 2021

6. Cash Flow Statement of Parent Company

In RMB

Item Current period Last period

I. Cash flows arising from operating activities:

Cash received from selling commodities and providing labor

services

1414975958.11 1503481532.94

Write-back of tax received 80886642.50 68849689.93

Other cash received concerning operating activities 8342146.00 7674946.80

Subtotal of cash inflow arising from operating activities 1504204746.61 1580006169.67

Cash paid for purchasing commodities and receiving labor service 1883907437.30 1611391194.70

Cash paid to/for staff and workers 138209129.02 92574310.37

Taxes paid 19528320.95 19950761.92

Other cash paid concerning operating activities 65698344.94 83323378.97

Subtotal of cash outflow arising from operating activities 2107343232.21 1807239645.96

Net cash flows arising from operating activities -603138485.60 -227233476.29

II. Cash flows arising from investing activities:

Cash received from recovering investment

Cash received from investment income 661434.48

Net cash received from disposal of fixed intangible and other

long-term assets

221343.80

Net cash received from disposal of subsidiaries and other units

Other cash received concerning investing activities 54389725.95 30225918.40

Subtotal of cash inflow from investing activities 54611069.75 30887352.88

Cash paid for purchasing fixed intangible and other long-term

assets

46747393.22 37868399.94

Cash paid for investment 1035000000.00 150000000.00

Net cash received from subsidiaries and other units obtained

Other cash paid concerning investing activities 97662.47

Subtotal of cash outflow from investing activities 1081845055.69 187868399.94

Net cash flows arising from investing activities -1027233985.94 -156981047.06

III. Cash flows arising from financing activities

Cash received from absorbing investment

Cash received from loans 642079820.49 699899950.00

Other cash received concerning financing activities 57660735.85 5230480.90

Changhong Meiling Co. Ltd.The First Quarterly Report of 2021

Subtotal of cash inflow from financing activities 699740556.34 705130430.90

Cash paid for settling debts 830000000.00 359757944.82

Cash paid for dividend and profit distributing or interest paying 18628079.68 20706333.52

Other cash paid concerning financing activities 9281338.94 56113405.64

Subtotal of cash outflow from financing activities 857909418.62 436577683.98

Net cash flows arising from financing activities -158168862.28 268552746.92

IV. Influence on cash and cash equivalents due to fluctuation in

exchange rate

-2620717.67 -98749.36

V. Net increase of cash and cash equivalents -1791162051.49 -115760525.79

Add: Balance of cash and cash equivalents at the period -begin 4597503833.78 4017400437.18

VI. Balance of cash and cash equivalents at the period -end 2806341782.29 3901639911.39

Legal Representative: Wu Dinggang

Person in charge of accounting works: Pang Haitao

Person in charge of accounting institute: Yang Jun

II. Explanation on financial statement adjustment

1. Financial statement adjustment at the beginning of the first year when implementation of new leasing

rules from 2021

√ Applicable □Not applicable

Whether to adjust the balance sheet account at the beginning of the year

√ Yes □No

(1) Consolidate balance sheet

In RMB

Item December 31 2020 January 1 2021 Adjustment amount

Current assets:

Monetary fund 6594786789.98 6594786789.98

Settlement provisions

Capital lent

Trading financial assets 47242339.07 47242339.07

Derivative financial assets

Note receivable 340421386.71 340421386.71

Account receivable 1130275780.66 1130275780.66

Receivable financing 1632388702.83 1632388702.83

Accounts paid in advance 30105373.40 30070303.06 -35070.34

Insurance receivable

Reinsurance receivables

Changhong Meiling Co. Ltd.The First Quarterly Report of 2021

Contract reserve of reinsurance receivable

Other account receivable 145705978.26 145705978.26

Including: Interest receivable

Dividend receivable

Buying back the sale of financial assets

Inventories 1715354951.43 1715354951.43

Contractual assets

Assets held for sale

Non-current asset due within one year

Other current assets 198353464.98 198353464.98

Total current assets 11834634767.32 11834599696.98 -35070.34

Non-current assets:

Loans and payments on behalf

Debt investment

Other debt investment

Long-term account receivable

Long-term equity investment 76982822.38 76982822.38

Investment in other equity instrument

Other non-current financial assets 548148931.34 548148931.34

Investment real estate 53888462.00 53888462.00

Fixed assets 2391859440.31 2391859440.31

Construction in progress 60775088.96 60775088.96

Productive biological asset

Oil and gas asset

Right-of-use assets 9818834.44 9818834.44

Intangible assets 936851520.65 936851520.65

Expense on Research and Development 73028441.56 73028441.56

Goodwill

Long-term expenses to be apportioned

Deferred income tax asset 127185979.94 127185979.94

Other non-current asset

Total non-current asset 4268720687.14 4278539521.58 9818834.44

Total assets 16103355454.46 16113139218.56 9783764.10

Current liabilities:

Changhong Meiling Co. Ltd.The First Quarterly Report of 2021

Short-term loans 1336209050.55 1336209050.55

Loan from central bank

Capital borrowed

Trading financial liability 4584076.51 4584076.51

Derivative financial liability

Note payable 4439607982.34 4439607982.34

Account payable 2851999684.30 2851999684.30

Accounts received in advance

Contractual liability 522550891.28 522550891.28

Selling financial asset of repurchase

Absorbing deposit and interbank deposit

Security trading of agency

Security sales of agency

Wage payable 290321776.05 290321776.05

Taxes payable 89682433.90 89682433.90

Other account payable 724701686.72 724701686.72

Including: Interest payable

Dividend payable 4466628.25 4466628.25

Commission charge and commission payable

Reinsurance payable

Liability held for sale

Non-current liabilities due within one year 407825150.74 412825431.41 5000280.67

Other current liabilities 22923698.73 22923698.73

Total current liabilities 10690406431.12 10695406711.79 5000280.67

Non-current liabilities:

Insurance contract reserve

Long-term loans 188231439.30 188231439.30

Bonds payable

Including: Preferred stock

Perpetual capital securities

Lease liability 4783483.43 4783483.43

Long-term account payable 1705323.91 1705323.91

Long-term wages payable 10571526.69 10571526.69

Accrual liability 62392735.07 62392735.07

Changhong Meiling Co. Ltd.The First Quarterly Report of 2021

Deferred income 177377450.12 177377450.12

Deferred income tax liabilities 10575582.33 10575582.33

Other non-current liabilities

Total non-current liabilities 450854057.42 455637540.85 4783483.43

Total liabilities 11141260488.54 11151044252.64 9783764.10

Owner’s equity:

Share capital 1044597881.00 1044597881.00

Other equity instrument

Including: Preferred stock

Perpetual capital securities

Capital public reserve 2683837229.12 2683837229.12

Less: Inventory shares 9929336.18 9929336.18

Other comprehensive income -21451084.17 -21451084.17

Reasonable reserve

Surplus public reserve 416364790.43 416364790.43

Provision of general risk

Retained profit 740754202.23 740754202.23

Total owner’ s equity attributable to parent company 4854173682.43 4854173682.43

Minority interests 107921283.49 107921283.49

Total owner’ s equity 4962094965.92 4962094965.92

Total liabilities and owner’ s equity 16103355454.46 16113139218.56 9783764.10

Statement of adjustment:

The Company implemented the new leasing standards since 1 January 2021 and according to the cumulative impact of the first

implementation of new leasing standards adjust the amount of items related to financial statements at the beginning of the first year

of implementation without adjusting the information for comparable periods. For the operating lease prior to the first implementation

date the company measures the leasing liability based on the present value of remaining lease payments discounted at the internal

resources-internal placement rate at the date of initial implementation and the right-of-use assets are adjusted as necessary according

to the sum of the leasing liabilities and the prepayment.

(2) Balance Sheet of Parent Company

In RMB

Item December 31 2020 January 1 2021 Adjustment amount

Current assets:

Monetary funds 4605962184.11 4605962184.11

Trading financial assets 37589391.07 37589391.07

Derivative financial assets

Note receivable 286990200.00 286990200.00

Changhong Meiling Co. Ltd.The First Quarterly Report of 2021

Account receivable 1019299017.40 1019299017.40

Receivable financing 1561429139.80 1561429139.80

Accounts paid in advance 39571728.09 39571728.09

Other account receivable 49093918.57 49093918.57

Including: Interest receivable

Dividend receivable

Inventories 578905855.30 578905855.30

Contractual assets

Assets held for sale

Non-current assets maturing within one year

Other current assets 142573164.77 142573164.77

Total current assets 8321414599.11 8321414599.11

Non-current assets:

Debt investment

Other debt investment

Long-term receivables

Long-term equity investments 1834115835.95 1834115835.95

Investment in other equity instrument

Other non-current financial assets 548148931.34 548148931.34

Investment real estate 3961590.38 3961590.38

Fixed assets 1229803474.56 1229803474.56

Construction in progress 47570309.13 47570309.13

Productive biological assets

Oil and natural gas assets

Right-of-use assets

Intangible assets 479923618.32 479923618.32

Research and development costs 42913363.51 42913363.51

Goodwill

Long-term deferred expenses

Deferred income tax assets 103462284.33 103462284.33

Other non-current assets

Total non-current assets 4289899407.52 4289899407.52

Total assets 12611314006.63 12611314006.63

Current liabilities

Changhong Meiling Co. Ltd.The First Quarterly Report of 2021

Short-term borrowings 1234926592.05 1234926592.05

Trading financial liability 2512269.00 2512269.00

Derivative financial liability

Notes payable 2510288511.69 2510288511.69

Account payable 1918960127.71 1918960127.71

Accounts received in advance

Contractual liability 281974752.24 281974752.24

Wage payable 130314834.51 130314834.51

Taxes payable 19582700.30 19582700.30

Other accounts payable 624090798.72 624090798.72

Including: Interest payable

Dividend payable 3866628.25 3866628.25

Liability held for sale

Non-current liabilities due within one year 407141888.08 407141888.08

Other current liabilities 6432113.43 6432113.43

Total current liabilities 7136224587.73 7136224587.73

Non-current liabilities:

Long-term loans 188231439.30 188231439.30

Bonds payable

Including: preferred stock

Perpetual capital securities

Lease liability

Long-term account payable

Long term employee compensation payable 10571526.69 10571526.69

Accrued liabilities 55035910.31 55035910.31

Deferred income 67315337.57 67315337.57

Deferred income tax liabilities 6102908.01 6102908.01

Other non-current liabilities

Total non-current liabilities 327257121.88 327257121.88

Total liabilities 7463481709.61 7463481709.61

Owners’ equity:

Share capital 1044597881.00 1044597881.00

Other equity instrument

Including: preferred stock

Changhong Meiling Co. Ltd.The First Quarterly Report of 2021

Perpetual capital securities

Capital public reserve 2753137787.99 2753137787.99

Less: Inventory shares 9929336.18 9929336.18

Other comprehensive income

Special reserve

Surplus reserve 416146624.75 416146624.75

Retained profit 943879339.46 943879339.46

Total owner’s equity 5147832297.02 5147832297.02

Total liabilities and owner’s equity 12611314006.63 12611314006.63

Statement of adjustment: the parent company has no business applicable to the new leasing standard there is no adjustment therefore.

2. Retrospective adjustment of the comparative data for initial new leasing rules from 2021

□Applicable √Not applicable

III. Audit report

Whether the Q1 report has been audited or not

□Yes √ No

The Q1 report of the Company has not been audited.

Changhong Meiling Co. Ltd.

Chairman: Wu Dinggang

20 April 2021